M. Lance Hall
About M. Lance Hall
President & CEO of Origin Bank since January 2020; 25+ years at Origin across strategy, operations, credit, and market leadership. Age 51; B.S. in Managerial Finance (University of Mississippi) and graduate of The Graduate School of Banking at LSU . 2024 operating context: net interest income rose 0.3% to $300.4M with NIM-FTE stable at 3.22%; ROAA declined to 0.77% and ROAE to 6.92%; nonperforming LHFI rose to 0.99% and net charge-offs to 0.18% . OBK cumulative TSR from 2019 year-end to 2024 was -4.77% (2020 -25.47%, 2021 +56.45%, 2022 -13.30%, 2023 -1.22%, 2024 -4.64%) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Origin Bank | President & CEO | Jan 2020–present | Led “Optimize Origin” cost actions; enhanced engagement/culture; coordinated portfolio risk reduction under $10B assets . |
| Origin Bank | President | Jul 2018–Jan 2020 | Oversaw lending, IT, retail, operations, marketing, mortgage, and strategic planning . |
| Origin Bank | Louisiana State President | Mar 2013–Jul 2018 | Market leadership with added Chief Strategy Officer (2016) and COO (Feb 2017) responsibilities . |
| Origin Bank | Various roles across 25+ years | Pre-2013 | Progression through credit/operations; organizational continuity and execution depth . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Regions Bank | Credit Analyst & Commercial Relationship Manager | 4 years (pre-Origin) | Credit and relationship management foundational experience . |
Fixed Compensation
| Item | 2024 | 2023 |
|---|---|---|
| Base Salary ($) | 600,000 | 600,000 |
| STIP Target (% of Salary) | 50% | 50% |
| Actual STIP Paid ($) | 315,525 | 278,006 |
| Perquisites (selected) | Country club dues $7,198; personal use of company car $15,683; employer 401(k) $10,350; BOLI taxable value $541; Total $33,772 | Country club dues included above; totals per NEO table |
Performance Compensation
| Metric | Weighting | Target | Actual | Payout (% of target) |
|---|---|---|---|---|
| Normalized PTPP ROAA | 30% | 1.16% | 1.16% | 100.0% |
| Normalized Net Income | 25% | $76.9M | $76.9M | 100.0% |
| NPA Ratio | 10% | 1.00% | 1.04% | 90.0% |
| NCO Ratio | 10% | 0.25% | 0.25% | 100.0% |
| Scorecard (individual) | 25% | — | Weighted achievement 31.2% | — |
- Combined 2024 STIP result for Hall: 105.2% of target; cash paid $315,525 .
LTI awards and vesting
- 2024 LTI target value: PSUs $150,000; RSUs $150,000; total $300,000 .
- 2024 grants (5/20/2024): RSUs 4,542 units (33.3% annual vesting to 5/20/2027); PSUs target 4,542 units (payout 50–150% based on 3-year ROAA and ROAE; scheduled vest 2/20/2027) .
- 2023 grants (2/17/2023): RSUs and PSUs outstanding (RSUs vest ratably to 2/17/2026; PSUs scheduled to vest 2/17/2026 with 50–150% payout curve) .
- 2022 PSU cycle (final on 12/31/2024): ROAA achieved 1.05% (57.13% payout) and ROAE 10.63% (70.67% payout); Hall earned 1,783 shares .
Equity Ownership & Alignment
| Ownership element | Detail |
|---|---|
| Beneficial ownership | 62,499 common shares; less than 1% of shares outstanding . |
| 401(k) holdings | Includes 34,874 shares allocated to Hall’s 401(k) account . |
| Outstanding awards (12/31/2024) | PSUs unearned: 931 (2022 ROAA tranche) and 1,783 (final 2022 payout) ; 2,523 (2023 ROAA), 1,892 (2023 ROAE), 6,812 (2024 max) . RSUs from 2024 and 2023 vest ratably over 3 years . |
| Ownership guidelines | President & CEO of Origin Bank: 3x base salary; all executives/directors in compliance at 12/31/2024 . |
| Hedging/pledging/margin | Hedging prohibited; margin accounts prohibited; pledging discouraged and requires pre-approval showing capacity to repay without resort to pledged securities . |
Upcoming vesting cadence and potential supply
- RSUs: 2024 grant vests ~33.3% annually through 5/20/2027; 2023 grant vests through 2/17/2026 (time-based) .
- PSUs: 2023 tranche scheduled 2/17/2026; 2024 tranche scheduled 2/20/2027; payouts depend on 3-year ROAA/ROAE achievement (50–150%) .
- Omnibus Plan prohibits single-trigger CIC equity acceleration; acceleration applies if awards are not assumed or upon termination without cause within 12 months post-CIC (PSUs) .
Employment Terms
| Provision | Key terms |
|---|---|
| Employment agreement | Restated 2/27/2020; 3-year term with automatic 3-year renewals unless 180 days’ non-renewal notice; current base salary $600,000 . |
| Confidentiality/non-solicit | Indefinite confidentiality and non-disparagement; two-year non-solicit of customers and employees post-termination (geographic limits apply) . |
| Severance (no CIC) | If terminated without Cause or for Good Reason outside CIC protection period: 2x current base salary plus 2x average STIP of last 3 years, paid monthly over 24 months; COBRA premiums for up to 24 months (or cash equivalent if discriminatory) . |
| CIC cash severance | If terminated without Cause or for Good Reason within CIC protection period: 3x current base salary plus 3x average STIP of last 3 years (lump sum total $2,761,579 illustrative) . |
| Equity acceleration | RSUs accelerate 100% upon death, disability, CIC (if not substituted), or qualified retirement; PSUs accelerate per time elapsed, or 100% of target at CIC if not assumed/substituted or if terminated without cause within 12 months post-CIC . |
| SERP (present value) | $929,179 present value at 12/31/2024; pays $118,939 first year (1.5% COLA annually) from retirement at age 65 until death; severance if terminated prior to 65 pays accrued liability over 15 installments; CIC treated as age-65 retirement if terminated (not for Cause) . |
| ESIA | Present value $211,315; pays 10% of base salary annually for 6 years starting at age 60; 100% Accrued Liability Retirement Balance payable if involuntary termination without Cause/Good Reason or disability; lump sum present value if involuntary termination within 24 months post-CIC . |
| Split-dollar life insurance | Death benefits: $386,693 (2002 agreement) and $318,936 (2019 agreement); employee life insurance benefit up to $500,000 (2x salary cap) . |
| Clawback policy | Complies with SEC/NYSE rules; recovery of incentive-based comp for both “Big R” and “little r” restatements, regardless of fault; no indemnification . |
| Stock options | Company has not recently granted options; none of the NEOs hold stock options . |
Compensation Structure Diagnostics
- Mix: For NEOs, equity and at-risk pay is a significant share; Hall’s 2024 LTI target $300,000 split evenly between PSUs and RSUs; STIP at 50% target supports pay-for-performance balance .
- Metrics: Short-term emphasizes profitability and credit quality (PTPP ROAA, normalized net income, NPA, NCO); long-term PSUs tie to 3-year ROAA and ROAE with 50–150% payout slope .
- Governance: No excise tax gross-ups; no option repricing without shareholder approval; hedging prohibited; minimum three-year vesting; dividend restrictions until vesting; no single-trigger CIC acceleration in plan .
- Shareholder feedback: Say-on-pay approval 98.0% in 2024; Committee maintained program design consistency in 2024 .
2024 Operating Highlights (context for pay-for-performance)
| Metric | 2024 | 2023 |
|---|---|---|
| Net interest income ($M) | 300.4 | 299.6 |
| NIM-FTE | 3.22% | 3.23% |
| ROAA | 0.77% | 0.84% |
| ROAE | 6.92% | 8.38% |
| Nonperforming LHFI / total LHFI | 0.99% | 0.39% |
| Net charge-offs / avg LHFI | 0.18% | 0.10% |
| TSR | 2020 | 2021 | 2022 | 2023 | 2024 | Cumulative |
|---|---|---|---|---|---|---|
| OBK stock | -25.47% | +56.45% | -13.30% | -1.22% | -4.64% | -4.77% |
Risk Indicators & Red Flags
- Rising credit costs and asset quality pressure: NPA ratio up to 0.99% and NCO ratio to 0.18% vs prior year, reflected in STIP metrics design and payouts (NPA below target; NCO at target) .
- Equity supply from vesting: Time-based RSUs vest annually; PSUs vest on cycle completion; insider trading policy prohibits hedging and margins, discourages pledging—reduces misalignment risk .
- No disclosed option repricing; clawback in place for restatements; ownership guidelines enforced (sell restrictions until guideline met) .
Compensation Peer Group (benchmarking)
- 2024 peer group: 20 banks, median assets ≈ $12.2B at selection; includes Renasant, Trustmark, ServisFirst, Triump Financial, Seacoast, Veritex, FB Financial, Enterprise Financial Services, among others .
Equity Ownership & Director Governance (board-level context)
- All executives and directors met ownership guidelines at year-end; governance practices include independent compensation consultant (Meridian), annual risk reviews, and robust committee oversight .
Investment Implications
- Pay-for-performance alignment: STIP and PSUs tether compensation to profitability and returns, with clawbacks and no single-trigger acceleration—supports disciplined risk-taking .
- Retention: SERP/ESIA and multi-year vesting create meaningful golden handcuffs; severance protects continuity but CIC multiples (3x salary+bonus) could be value-dilutive in a sale scenario .
- Selling pressure: RSU tranches vest annually (2024–2027), and PSU cycles complete in 2026/2027; policy constraints (ownership guidelines, hedging/pledging limits) mitigate opportunistic selling, but calendar vesting dates are watchpoints for incremental supply .
- Execution risk: 2024 credit metrics deteriorated YoY (NPA, NCO), though STIP hit core profitability targets; ongoing success of “Optimize Origin” and loan portfolio risk actions will be key to PSU outcomes and longer-term ROAA/ROAE performance .