Stephen

Stephen from Piper Sandler asked about the earn-back or break-even period for new hires, considering non-compete clauses, and how Origin Bancorp effectively competes for talent in a competitive industry. He also inquired about the role of data in shaping the bank's loan growth composition, risk-adjusted returns, and overall lending focus, as well as the expected path for reducing non-performing assets.

Answer

Drake Mills (Chairman, President and CEO, Origin Bancorp Inc) stated a focus on 12-15 month earn-back periods for new teams, emphasizing Origin's C&I focus, strong market representation, and award-winning culture as competitive advantages. Jim Crotwell (Chief Risk Officer) added that the geographic model and entrepreneurial attitude attract C&I bankers. Lance Hall (President and CEO, Origin Bank) highlighted the transformative role of data in driving decisions on client and product profitability, banker performance, and loan mix. Jim Crotwell confirmed a focus on reducing criticized loans and non-performing assets, expressing optimism for progress in 2026.

Stephen from Piper Sandler asked about the expected earnback period for new hires, Origin Bancorp Inc's competitive advantages in attracting talent amidst industry-wide hiring, the role of data in shaping loan growth composition and the bank's lending focus, and the anticipated path for non-performing assets.

Answer

Drake Mills, Chairman, President and CEO, stated that the target earnback period for new hires is 12-15 months, noting that previous teams took 18 months in a higher interest rate environment. He highlighted Origin's C&I focus, strong market representation, culture, and entrepreneurial model as key competitive advantages. Lance Hall, President and CEO of Origin Bank, emphasized the critical role of data, driven by CFO Wally Wallace's team, in identifying ROA enhancement opportunities, designing top-performing banker profiles, and making informed decisions on client and product profitability. Jim Crotwell, Chief Risk Officer, confirmed that the focus on client selection and moving out criticized loans is driving down non-performing assets, expressing optimism for further reductions in 2026.

Stephen (on behalf of Krish Sankar) asked about the potential for expansion in Teradyne's VIP customer base, particularly among larger and Tier 2 CSPs, and whether relationships with these customers or merchant GPU players are direct or foundry-based. He also inquired about expected growth for hard disk drive (HDD) system test in Q4 2025.

Answer

CEO Greg Smith explained that the VIP customer base is highly concentrated, with two main customers driving demand, and expansion is slow. Hyperscalers are increasingly controlling their supply chains. Merchant GPU efforts are directed at the specifier, not the foundry. Regarding HDD, Mr. Smith stated that capacity additions take time, so order strength will primarily translate into 2026 revenue, with no significant growth expected for the Integrated Systems division (IST) in Q4 2025.

Stephen, on behalf of Krish Sankar, asked about the expansion of the VIP customer base (larger CSPs, Tier 2 CSPs) and whether Teradyne has direct relationships with them or if it's more foundry-driven. He posed a similar question for merchant GPUs. He also inquired about the strength in hard disk drives (HDD) from cloud demand, asking if strong double-digit growth is expected for the System Level Test (SLT) segment in Q4.

Answer

CEO Greg Smith explained that the VIP market is highly concentrated with hyperscalers exerting more control over the supply chain, and merchant GPU efforts are directed at the specifier, not the foundry. For HDD, Mr. Smith stated that capacity adds take time, expecting a greater effect in 2026 rather than significant growth in the Integrated Systems Division (IST) in Q4.