EX-99.1 2 tbk-ex991_7.htm EX-99.1 tbk-ex991_7.htm

Exhibit 99.1

Triumph Bancorp Reports Third Quarter Net Income to Common Stockholders of $5.7 Million.

DALLAS – October 28, 2015 (GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (NASDAQ: TBK) today announced earnings and operating results for the third quarter of 2015.

“I am pleased that our third quarter results demonstrate performance in line with our strategic plan”, said Aaron P. Graft, Chief Executive Officer, Triumph Bancorp, Inc.  

As part of how we measure our results, we use certain non-GAAP financial measures to ascertain performance.  These non-GAAP financial measures are reconciled in the section labeled “Metrics and Non-GAAP Financial Reconciliation” at the end of this document.

Third Quarter Highlights

 

·

For the third quarter of 2015, net income was $5.9 million and net income available to common stockholders was $5.7 million, compared to net income of $4.7 million and net income available to common stockholders of $4.5 million for the quarter ended June 30, 2015.  The results for the quarter ended September 30, 2015 include a net benefit of $1.7 million recorded to increase the bargain purchase gain realized on the acquisition of Doral Money, Inc. (“DMI”), bringing the gain on this transaction to $14.2 million.

 

·

Fully diluted earnings per share were $0.32 for the quarter ended September 30, 2015, compared to $0.25 for the quarter ended June 30, 2015. Excluding the impact of third quarter 2015 measurement period adjustments to the bargain purchase gain associated with the DMI acquisition, adjusted fully diluted earnings per share were $0.22 for the quarter ended September 30, 2015.

 

·

For the quarter ended September 30, 2015, our annualized return on average common equity and return on average assets were 9.00% and 1.50%, respectively, compared to an annualized return on average common equity and return on average assets of 7.27% and 1.23%, respectively, for the quarter ended June 30, 2015.  Our ratio of tangible common stockholders’ equity to tangible assets was 14.50% as of September 30, 2015.

 

·

Total loans held for investment increased $32.6 million, or 2.8%, during the third quarter of 2015, and have increased $179.4 million, or 17.8%, during the nine months ended September 30, 2015.

 

·

Net interest margin (“NIM”) was 6.45% for the quarter ended September 30, 2015 and 6.59% for the nine months ended September 30, 2015.

Balance Sheet

Total loans held for investment were $1.185 billion at September 30, 2015, an increase of $32.6 million or 2.8% during the third quarter.  This increase was primarily due to continued organic growth in our commercial finance loan portfolio, which consists of factored receivables, asset based and equipment loans originated under our Triumph Commercial Finance brand, and healthcare asset based loans originated under our Triumph Healthcare Finance brand.  Our commercial finance loan portfolio totaled $497.8 million as of September 30, 2015, an increase of $30.1 million or 6.4% in the third quarter of 2015.

Total deposits were $1.200 billion at September 30, 2015, an increase of $10.8 million or 0.9% for the third quarter of 2015.  Non-interest-bearing deposits accounted for 14% of total deposits and non-time deposits accounted for 47% of total deposits. The average cost of our total funds was 0.64% for the quarter ended September 30, 2015 compared to 0.63% for the quarter ended June 30, 2015, on an annualized basis.

1

 

Net Interest Income

We earned net interest income for the quarter ended September 30, 2015 of $23.2 million compared to $24.6 million for the quarter ended June 30, 2015.  Yields on loans for the quarter ended September 30, 2015 were down 115 bps to 8.34% (7.96% adjusted to exclude loan discount accretion) compared to 9.49% (8.96% adjusted to exclude loan discount accretion) for the quarter ended June 30, 2015.   NIM decreased 75 bps to 6.45% for the quarter ended September 30, 2015 from 7.20% for the quarter ended June 30, 2015. NIM adjusted to exclude loan discount accretion was 6.14% for the quarter ended September 30, 2015 compared to 6.78% for the quarter ended June 30, 2015.  As previously reported, the higher NIM levels for the prior quarter ended June 30, 2015 were impacted by $2.3 million of delinquent interest and fees received in conjunction with the resolution and restructuring of two specific loans.

 

Asset Quality

Non-performing Assets (“NPAs”) improved 14 bps from June 30, 2015 to September 30, 2015 to 1.12% of total assets, and our ratio of past due to total loans improved to 2.14%.  We experienced net charge-offs of $0.1 million for the quarter ended September 30, 2015 compared to net charge-offs of $0.4 million for the quarter ended June 30, 2015.  Our provision for loan losses was $0.2 million for the quarter ended September 30, 2015 compared to $2.5 million for the quarter ended June 30, 2015. From June 30, 2015 to September 30, 2015, our allowance for loan and lease losses (“ALLL”) remained relatively stable from $11.5 million or 0.99% of total loans to $11.5 million or 0.97% of total loans.

Non-interest Income and Expense

We earned non-interest income for the quarter ended September 30, 2015 of $6.3 million (or $4.6 million excluding the DMI bargain purchase adjustment) compared to $4.8 million for the quarter ended June 30, 2015.  Non-interest income for the quarter ended September 30, 2015 included $1.7 million of asset management fees earned by our asset management subsidiary, Triumph Capital Advisors.

For the quarter ended September 30, 2015, non-interest expense totaled $20.5 million, compared to $19.6 million for the quarter ended June 30, 2015.

Conference Call Information

Aaron P. Graft, Vice Chairman and CEO and Bryce Fowler, CFO will review the quarterly results in a conference call for investors and analysts beginning at 8:30 a.m. Central Time on Thursday, October 29, 2015.

To participate in the live conference call, please dial 1 (855) 779-1042 (U.S. and Canada) and enter Conference ID # 60864808.  A simultaneous audio-only webcast may be accessed via our website at www.triumphbancorp.com through the Investor Relations, Webcasts and Presentations links, or through a direct link here at http://edge.media-server.com/m/p/2kqvb5n3/lan/en. An archive of this conference call will subsequently be available at this same location on our website.

About Triumph

Headquartered in Dallas, Texas, Triumph Bancorp, Inc. (NASDAQ: TBK) is a financial holding company with a diversified line of community banking, commercial finance and asset management activities. www.triumphbancorp.com

2

 

Forward-Looking Statements

This press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: our limited operating history as an integrated company; business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market area; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; risks related to the integration of acquired businesses and any future acquisitions; changes in management personnel; interest rate risk; concentration of our factoring services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve non-performing assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; risks related to our asset management business; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the obligations associated with being a public company; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of the Federal Deposit Insurance Corporation insurance and other coverages; failure to receive regulatory approval for future acquisitions; increases in our capital requirements; and risk retention requirements under the Dodd-Frank Act.

While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 6, 2015.

Non-GAAP Financial Measures

This press release includes certain Non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided at the end of this press release.


3

 

The following table sets forth key metrics used by Triumph to monitor its operations. Footnotes in this table can be found in our definitions of non-GAAP financial measures at the end of this document.

 

 

As of and for the Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2015

 

 

2015

 

 

2015

 

 

2014

 

 

2014

 

Financial Highlights (Dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,581,463

 

 

$

1,529,259

 

 

$

1,472,743

 

 

$

1,447,898

 

 

$

1,347,798

 

Loans held for investment

 

$

1,185,301

 

 

$

1,152,679

 

 

$

1,011,446

 

 

$

1,005,878

 

 

$

977,139

 

Deposits

 

$

1,200,036

 

 

$

1,189,259

 

 

$

1,173,679

 

 

$

1,165,229

 

 

$

1,105,624

 

Net income available to common stockholders

 

$

5,732

 

 

$

4,457

 

 

$

13,852

 

 

$

2,021

 

 

$

9,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios - Annualized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.50

%

 

 

1.23

%

 

 

3.93

%

 

 

0.78

%

 

 

3.01

%

Return on average common equity (1)

 

 

9.00

%

 

 

7.27

%

 

 

23.95

%

 

 

4.30

%

 

 

26.84

%

Return on average tangible common equity (1)

 

 

10.20

%

 

 

8.28

%

 

 

27.38

%

 

 

5.11

%

 

 

34.26

%

Return on average total equity

 

 

8.96

%

 

 

7.30

%

 

 

23.31

%

 

 

5.02

%

 

 

23.16

%

Yield on loans

 

 

8.34

%

 

 

9.49

%

 

 

8.50

%

 

 

8.98

%

 

 

8.66

%

Adjusted yield on loans (1)

 

 

7.96

%

 

 

8.96

%

 

 

8.04

%

 

 

8.29

%

 

 

8.03

%

Cost of interest bearing deposits

 

 

0.69

%

 

 

0.65

%

 

 

0.64

%

 

 

0.61

%

 

 

0.56

%

Cost of total deposits

 

 

0.59

%

 

 

0.56

%

 

 

0.55

%

 

 

0.52

%

 

 

0.48

%

Cost of total funds

 

 

0.64

%

 

 

0.63

%

 

 

0.63

%

 

 

0.65

%

 

 

0.59

%

Net interest margin (1)

 

 

6.45

%

 

 

7.20

%

 

 

6.11

%

 

 

6.58

%

 

 

6.69

%

Adjusted net interest margin (1)

 

 

6.14

%

 

 

6.78

%

 

 

5.76

%

 

 

6.05

%

 

 

6.19

%

Net non-interest expense to average assets (1)

 

 

4.04

%

 

 

3.95

%

 

 

4.18

%

 

 

4.44

%

 

 

4.48

%

Efficiency ratio (1)

 

 

73.85

%

 

 

66.75

%

 

 

79.70

%

 

 

78.58

%

 

 

78.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due to total loans

 

 

2.14

%

 

 

2.33

%

 

 

2.91

%

 

 

2.57

%

 

 

2.61

%

Non-performing loans  to total loans

 

 

0.97

%

 

 

1.12

%

 

 

1.66

%

 

 

1.66

%

 

 

1.80

%

Non-performing assets to total assets

 

 

1.12

%

 

 

1.26

%

 

 

1.62

%

 

 

1.73

%

 

 

2.05

%

ALLL to non-performing loans

 

 

100.00

%

 

 

88.51

%

 

 

55.28

%

 

 

53.02

%

 

 

41.68

%

ALLL to total loans

 

 

0.97

%

 

 

0.99

%

 

 

0.92

%

 

 

0.88

%

 

 

0.75

%

Net charge-offs to average loans

 

 

0.01

%

 

 

0.03

%

 

 

0.02

%

 

 

0.03

%

 

 

0.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital:(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital to average assets

 

 

16.87

%

 

 

17.01

%

 

 

17.35

%

 

 

15.92

%

 

 

12.20

%

Tier 1 capital to risk-weighted assets

 

 

19.34

%

 

 

19.16

%

 

 

20.72

%

 

 

19.56

%

 

 

14.59

%

Common equity tier 1 capital to risk-weighted assets

 

 

17.18

%

 

 

16.98

%

 

 

18.33

%

 

N/A

 

 

N/A

 

Total capital to risk-weighted assets

 

 

20.21

%

 

 

20.04

%

 

 

21.51

%

 

 

20.35

%

 

 

15.27

%

Total equity to total assets

 

 

16.69

%

 

 

16.84

%

 

 

17.16

%

 

 

16.40

%

 

 

13.05

%

Total stockholders' equity to total assets

 

 

16.69

%

 

 

16.84

%

 

 

17.16

%

 

 

16.40

%

 

 

11.12

%

Tangible common stockholders' equity to tangible assets

 

 

14.50

%

 

 

14.51

%

 

 

14.75

%

 

 

14.00

%

 

 

8.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

14.09

 

 

$

13.73

 

 

$

13.52

 

 

$

12.68

 

 

$

14.18

 

Tangible book value per share (1)

 

$

12.48

 

 

$

12.06

 

 

$

11.84

 

 

$

11.06

 

 

$

11.17

 

Basic earnings per common share

 

$

0.32

 

 

$

0.25

 

 

$

0.78

 

 

$

0.14

 

 

$

0.96

 

Diluted earnings per common share

 

$

0.32

 

 

$

0.25

 

 

$

0.76

 

 

$

0.14

 

 

$

0.91

 

Shares outstanding end of period

 

 

18,040,072

 

 

 

18,041,072

 

 

 

17,963,783

 

 

 

17,963,783

 

 

 

9,886,778

 



4

 

Unaudited consolidated balance sheet as of:

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands)

 

2015

 

 

2015

 

 

2015

 

 

2014

 

 

2014

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

 

$

115,783

 

 

$

99,714

 

 

$

178,442

 

 

$

160,888

 

 

$

75,625

 

Securities - available for sale

 

 

156,820

 

 

 

158,693

 

 

 

161,360

 

 

 

162,024

 

 

 

165,489

 

Securities - held to maturity

 

 

747

 

 

 

746

 

 

 

746

 

 

 

745

 

 

 

745

 

Loans held for sale

 

 

2,174

 

 

 

4,096

 

 

 

3,401

 

 

 

3,288

 

 

 

7,295

 

Loans held for investment

 

 

1,185,301

 

 

 

1,152,679

 

 

 

1,011,446

 

 

 

1,005,878

 

 

 

977,139

 

Allowance for loan and lease losses

 

 

(11,544

)

 

 

(11,462

)

 

 

(9,286

)

 

 

(8,843

)

 

 

(7,320

)

Loans, net

 

 

1,173,757

 

 

 

1,141,217

 

 

 

1,002,160

 

 

 

997,035

 

 

 

969,819

 

FHLB and FRB stock

 

 

7,992

 

 

 

5,707

 

 

 

4,466

 

 

 

4,903

 

 

 

5,826

 

Premises and equipment, net

 

 

21,807

 

 

 

21,677

 

 

 

21,716

 

 

 

21,933

 

 

 

21,744

 

Other real estate owned ("OREO"), net

 

 

6,201

 

 

 

6,322

 

 

 

6,991

 

 

 

8,423

 

 

 

10,019

 

Goodwill and intangible assets, net

 

 

28,995

 

 

 

30,174

 

 

 

30,211

 

 

 

29,057

 

 

 

29,783

 

Bank-owned life insurance

 

 

29,406

 

 

 

29,295

 

 

 

29,193

 

 

 

29,083

 

 

 

28,955

 

Deferred tax asset, net

 

 

15,838

 

 

 

15,582

 

 

 

14,983

 

 

 

15,956

 

 

 

16,523

 

Other assets

 

 

21,943

 

 

 

16,036

 

 

 

19,074

 

 

 

14,563

 

 

 

15,975

 

Total assets

 

$

1,581,463

 

 

$

1,529,259

 

 

$

1,472,743

 

 

$

1,447,898

 

 

$

1,347,798

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

167,931

 

 

$

164,560

 

 

$

167,538

 

 

$

179,848

 

 

$

154,750

 

Interest bearing deposits

 

 

1,032,105

 

 

 

1,024,699

 

 

 

1,006,141

 

 

 

985,381

 

 

 

950,874

 

Total deposits

 

 

1,200,036

 

 

 

1,189,259

 

 

 

1,173,679

 

 

 

1,165,229

 

 

 

1,105,624

 

Customer repurchase agreements

 

 

15,584

 

 

 

13,011

 

 

 

8,666

 

 

 

9,282

 

 

 

15,644

 

Federal Home Loan Bank advances

 

 

61,000

 

 

 

19,000

 

 

 

—

 

 

 

3,000

 

 

 

—

 

Senior secured note

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,630

 

Junior subordinated debentures

 

 

24,620

 

 

 

24,553

 

 

 

24,487

 

 

 

24,423

 

 

 

24,359

 

Other liabilities

 

 

16,304

 

 

 

25,957

 

 

 

13,234

 

 

 

8,455

 

 

 

14,713

 

Total liabilities

 

 

1,317,544

 

 

 

1,271,780

 

 

 

1,220,066

 

 

 

1,210,389

 

 

 

1,171,970

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock series A

 

 

4,550

 

 

 

4,550

 

 

 

4,550

 

 

 

4,550

 

 

 

4,550

 

Preferred stock series B

 

 

5,196

 

 

 

5,196

 

 

 

5,196

 

 

 

5,196

 

 

 

5,196

 

Common stock

 

 

181

 

 

 

181

 

 

 

180

 

 

 

180

 

 

 

99

 

Additional paid-in-capital

 

 

193,465

 

 

 

192,605

 

 

 

191,745

 

 

 

191,049

 

 

 

105,304

 

Treasury stock, at cost

 

 

(184

)

 

 

(170

)

 

 

(161

)

 

 

(161

)

 

 

(68

)

Retained earnings

 

 

59,785

 

 

 

54,053

 

 

 

49,596

 

 

 

35,744

 

 

 

34,014

 

Accumulated other comprehensive income

 

 

926

 

 

 

1,064

 

 

 

1,571

 

 

 

951

 

 

 

836

 

Total stockholders’ equity

 

 

263,919

 

 

 

257,479

 

 

 

252,677

 

 

 

237,509

 

 

 

149,931

 

Noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25,897

 

Total equity

 

 

263,919

 

 

 

257,479

 

 

 

252,677

 

 

 

237,509

 

 

 

175,828

 

Total liabilities and equity

 

$

1,581,463

 

 

$

1,529,259

 

 

$

1,472,743

 

 

$

1,447,898

 

 

$

1,347,798

 


5

 

Unaudited consolidated statement of income for the three months ended:

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands)

 

2015

 

 

2015

 

 

2015

 

 

2014

 

 

2014

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

15,716

 

 

$

17,158

 

 

$

13,239

 

 

$

14,138

 

 

$

13,706

 

Factored receivables, including fees

 

 

8,829

 

 

 

8,654

 

 

 

7,509

 

 

 

8,367

 

 

 

7,681

 

Taxable securities

 

 

649

 

 

 

659

 

 

 

678

 

 

 

644

 

 

 

666

 

Tax exempt securities

 

 

17

 

 

 

16

 

 

 

12

 

 

 

14

 

 

 

15

 

Cash deposits

 

 

92

 

 

 

110

 

 

 

141

 

 

 

117

 

 

 

50

 

Total interest income

 

 

25,303

 

 

 

26,597

 

 

 

21,579

 

 

 

23,280

 

 

 

22,118

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,764

 

 

 

1,667

 

 

 

1,570

 

 

 

1,498

 

 

 

1,289

 

Senior secured note

 

 

—

 

 

 

—

 

 

 

—

 

 

 

173

 

 

 

134

 

Junior subordinated debentures

 

 

283

 

 

 

278

 

 

 

272

 

 

 

276

 

 

 

276

 

Other borrowings

 

 

25

 

 

 

7

 

 

 

12

 

 

 

4

 

 

 

24

 

Total interest expense

 

 

2,072

 

 

 

1,952

 

 

 

1,854

 

 

 

1,951

 

 

 

1,723

 

Net interest income

 

 

23,231

 

 

 

24,645

 

 

 

19,725

 

 

 

21,329

 

 

 

20,395

 

Provision for loan losses

 

 

165

 

 

 

2,541

 

 

 

645

 

 

 

1,811

 

 

 

1,375

 

Net interest income after provision for loan losses

 

 

23,066

 

 

 

22,104

 

 

 

19,080

 

 

 

19,518

 

 

 

19,020

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

710

 

 

 

666

 

 

 

612

 

 

 

647

 

 

 

811

 

Card income

 

 

574

 

 

 

578

 

 

 

523

 

 

 

516

 

 

 

544

 

Net OREO gains/(losses) and valuation adjustments

 

 

(58

)

 

 

52

 

 

 

26

 

 

 

(242

)

 

 

(11

)

Net gains on sale of securities

 

 

15

 

 

 

242

 

 

 

—

 

 

 

62

 

 

 

10

 

Net gains on sale of loans

 

 

363

 

 

 

491

 

 

 

542

 

 

 

437

 

 

 

484

 

Fee income

 

 

542

 

 

 

502

 

 

 

422

 

 

 

553

 

 

 

448

 

Gain on branch sale

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,619

 

Bargain purchase gain

 

 

1,708

 

 

 

—

 

 

 

12,509

 

 

 

—

 

 

 

—

 

Asset management fees

 

 

1,744

 

 

 

1,274

 

 

 

958

 

 

 

486

 

 

 

374

 

Other

 

 

700

 

 

 

964

 

 

 

1,067

 

 

 

1,262

 

 

 

525

 

Total non-interest income

 

 

6,298

 

 

 

4,769

 

 

 

16,659

 

 

 

3,721

 

 

 

15,804

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

12,416

 

 

 

12,042

 

 

 

13,269

 

 

 

12,752

 

 

 

11,032

 

Occupancy, furniture and equipment

 

 

1,575

 

 

 

1,555

 

 

 

1,572

 

 

 

1,429

 

 

 

1,319

 

FDIC insurance and other regulatory assessments

 

 

252

 

 

 

271

 

 

 

263

 

 

 

221

 

 

 

280

 

Professional fees

 

 

1,344

 

 

 

852

 

 

 

1,327

 

 

 

1,146

 

 

 

1,043

 

Amortization of intangible assets

 

 

1,179

 

 

 

895

 

 

 

764

 

 

 

727

 

 

 

746

 

Advertising and promotion

 

 

618

 

 

 

526

 

 

 

543

 

 

 

366

 

 

 

1,102

 

Communications and technology

 

 

951

 

 

 

927

 

 

 

886

 

 

 

961

 

 

 

954

 

Other

 

 

2,210

 

 

 

2,567

 

 

 

2,159

 

 

 

2,083

 

 

 

1,985

 

Total non-interest expense

 

 

20,545

 

 

 

19,635

 

 

 

20,783

 

 

 

19,685

 

 

 

18,461

 

Net income before income tax

 

 

8,819

 

 

 

7,238

 

 

 

14,956

 

 

 

3,554

 

 

 

16,363

 

Income tax expense

 

 

2,891

 

 

 

2,586

 

 

 

912

 

 

 

747

 

 

 

6,089

 

Net income

 

$

5,928

 

 

$

4,652

 

 

$

14,044

 

 

$

2,807

 

 

$

10,274

 

Effect of noncontrolling interests and preferred shares

 

 

(196

)

 

 

(195

)

 

 

(192

)

 

 

(786

)

 

 

(779

)

Net income available to common stockholders

 

$

5,732

 

 

$

4,457

 

 

$

13,852

 

 

$

2,021

 

 

$

9,495

 

 


6

 

Loans held for investment summarized as of:

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands)

 

2015

 

 

2015

 

 

2015

 

 

2014

 

 

2014

 

Commercial real estate

 

$

247,175

 

 

$

234,090

 

 

$

236,659

 

 

$

249,164

 

 

$

261,836

 

Construction, land development, land

 

 

52,446

 

 

 

46,743

 

 

 

52,203

 

 

 

42,914

 

 

 

45,996

 

1-4 family residential properties

 

 

77,043

 

 

 

75,588

 

 

 

73,605

 

 

 

78,738

 

 

 

80,419

 

Farmland

 

 

25,784

 

 

 

25,701

 

 

 

24,805

 

 

 

22,496

 

 

 

20,059

 

Commercial

 

 

468,055

 

 

 

454,161

 

 

 

371,614

 

 

 

364,567

 

 

 

340,316

 

Factored receivables

 

 

201,803

 

 

 

199,716

 

 

 

171,452

 

 

 

180,910

 

 

 

169,112

 

Consumer

 

 

10,632

 

 

 

10,993

 

 

 

11,201

 

 

 

11,941

 

 

 

12,527

 

Mortgage warehouse

 

 

102,363

 

 

 

105,687

 

 

 

69,907

 

 

 

55,148

 

 

 

46,874

 

     Total loans

 

$

1,185,301

 

 

$

1,152,679

 

 

$

1,011,446

 

 

$

1,005,878

 

 

$

977,139

 

A portion of our total loan portfolio consists of commercial finance products offered on a nationwide basis, as further summarized below:

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands)

 

2015

 

 

2015

 

 

2015

 

 

2014

 

 

2014

 

Equipment*

 

$

143,483

 

 

$

138,018

 

 

$

118,273

 

 

$

106,354

 

 

$

94,460

 

Asset based lending (General)*

 

 

85,641

 

 

 

64,836

 

 

 

36,511

 

 

 

46,388

 

 

 

50,046

 

Asset based lending (Healthcare)*

 

 

66,832

 

 

 

65,083

 

 

 

59,572

 

 

 

41,770

 

 

 

40,885

 

Factored receivables

 

 

201,803

 

 

 

199,716

 

 

 

171,452

 

 

 

180,910

 

 

 

169,112

 

     Commercial finance

 

$

497,759

 

 

$

467,653

 

 

$

385,808

 

 

$

375,422

 

 

$

354,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans held for investment

 

$

1,185,301

 

 

$

1,152,679

 

 

$

1,011,446

 

 

$

1,005,878

 

 

$

977,139

 

Commercial finance as a % of total

 

 

42

%

 

 

41

%

 

 

38

%

 

 

37

%

 

 

36

%

Community banking as a % of total

 

 

58

%

 

 

59

%

 

 

62

%

 

 

63

%

 

 

64

%

*

Denotes equipment loans offered under our Triumph Commercial Finance brand, general asset based loans offered under our Triumph Commercial Finance brand and healthcare asset based loan products offered under our Triumph Healthcare Finance brand.

Deposits summarized as of:

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands)

 

2015

 

 

2015

 

 

2015

 

 

2014

 

 

2014

 

Non-interest bearing demand

 

$

167,931

 

 

$

164,560

 

 

$

167,538

 

 

$

179,848

 

 

$

154,750

 

Interest bearing demand

 

 

206,603

 

 

 

228,909

 

 

 

231,718

 

 

 

236,525

 

 

 

209,491

 

Individual retirement accounts

 

 

58,619

 

 

 

56,285

 

 

 

55,773

 

 

 

55,034

 

 

 

54,378

 

Money market

 

 

117,888

 

 

 

116,019

 

 

 

120,001

 

 

 

117,514

 

 

 

125,371

 

Savings

 

 

72,244

 

 

 

73,016

 

 

 

74,236

 

 

 

70,407

 

 

 

72,012

 

Certificates of deposit

 

 

526,732

 

 

 

500,451

 

 

 

474,413

 

 

 

455,901

 

 

 

439,603

 

Brokered deposits

 

 

50,019

 

 

 

50,019

 

 

 

50,000

 

 

 

50,000

 

 

 

50,019

 

     Total deposits

 

$

1,200,036

 

 

$

1,189,259

 

 

$

1,173,679

 

 

$

1,165,229

 

 

$

1,105,624

 


7

 

Net interest margin summarized for the three months ended:

 

 

September 30, 2015

 

 

June 30, 2015

 

 

 

Average

 

 

 

 

 

 

Average

 

 

Average

 

 

 

 

 

 

Average

 

(Dollars in thousands)

 

Balance

 

 

Interest

 

 

Rate

 

 

Balance

 

 

Interest

 

 

Rate

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning cash balances

 

$

96,566

 

 

$

92

 

 

 

0.38

%

 

$

119,969

 

 

$

110

 

 

 

0.37

%

Taxable securities

 

 

154,254

 

 

 

598

 

 

 

1.54

%

 

 

153,073

 

 

 

609

 

 

 

1.60

%

Tax exempt securities

 

 

2,554

 

 

 

17

 

 

 

2.64

%

 

 

3,643

 

 

 

16

 

 

 

1.76

%

FHLB and FRB stock

 

 

6,959

 

 

 

51

 

 

 

2.91

%

 

 

5,288

 

 

 

50

 

 

 

3.79

%

Loans

 

 

1,167,670

 

 

 

24,545

 

 

 

8.34

%

 

 

1,090,472

 

 

 

25,812

 

 

 

9.49

%

     Total interest earning assets

 

$

1,428,003

 

 

$

25,303

 

 

 

7.03

%

 

$

1,372,445

 

 

$

26,597

 

 

 

7.77

%

Non-interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

137,695

 

 

 

 

 

 

 

 

 

 

 

138,600

 

 

 

 

 

 

 

 

 

          Total assets

 

$

1,565,698

 

 

 

 

 

 

 

 

 

 

$

1,511,045

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand

 

$

211,823

 

 

$

32

 

 

 

0.06

%

 

$

239,033

 

 

$

36

 

 

 

0.06

%

Individual retirement accounts

 

 

57,227

 

 

 

177

 

 

 

1.23

%

 

 

55,778

 

 

 

168

 

 

 

1.21

%

Money market

 

 

116,375

 

 

 

66

 

 

 

0.23

%

 

 

116,517

 

 

 

66

 

 

 

0.23

%

Savings

 

 

72,617

 

 

 

9

 

 

 

0.05

%

 

 

74,088

 

 

 

9

 

 

 

0.05

%

Certificates of deposit

 

 

509,224

 

 

 

1,354

 

 

 

1.05

%

 

 

485,533

 

 

 

1,263

 

 

 

1.04

%

      Brokered deposits

 

 

50,002

 

 

 

126

 

 

 

1.00

%

 

 

50,002

 

 

 

125

 

 

 

1.00

%

     Total deposits

 

 

1,017,268

 

 

 

1,764

 

 

 

0.69

%

 

 

1,020,951

 

 

 

1,667

 

 

 

0.65

%

Junior subordinated debentures

 

 

24,580

 

 

 

283

 

 

 

4.57

%

 

 

24,513

 

 

 

278

 

 

 

4.55

%

Short-term borrowings

 

 

69,778

 

 

 

25

 

 

 

0.14

%

 

 

28,862

 

 

 

7

 

 

 

0.10

%

     Total interest bearing liabilities

 

$

1,111,626

 

 

$

2,072

 

 

 

0.74

%

 

$

1,074,326

 

 

$

1,952

 

 

 

0.73

%

Non-interest bearing liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

171,887

 

 

 

 

 

 

 

 

 

 

 

170,240

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

19,841

 

 

 

 

 

 

 

 

 

 

 

10,825

 

 

 

 

 

 

 

 

 

Total equity

 

 

262,344

 

 

 

 

 

 

 

 

 

 

 

255,654

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

1,565,698

 

 

 

 

 

 

 

 

 

 

$

1,511,045

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

23,231

 

 

 

 

 

 

 

 

 

 

$

24,645

 

 

 

 

 

Interest spread

 

 

 

 

 

 

 

 

 

 

6.29

%

 

 

 

 

 

 

 

 

 

 

7.04

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

6.45

%

 

 

 

 

 

 

 

 

 

 

7.20

%

 

 


8

 

Metrics and non-GAAP financial reconciliation:

 

 

As of and for the Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands, except per share amounts)

 

2015

 

 

2015

 

 

2015

 

 

2014

 

 

2014

 

Net income

 

$

5,928

 

 

$

4,652

 

 

$

14,044

 

 

$

2,807

 

 

$

10,274

 

Less: gain on branch sale, net of tax

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,892

 

Less: bargain purchase gain, non-taxable

 

 

1,708

 

 

 

—

 

 

 

12,509

 

 

 

—

 

 

 

—

 

Add: merger and acquisition expenses, net of tax

 

 

—

 

 

 

—

 

 

 

158

 

 

 

—

 

 

 

—

 

Add: incremental bonus related to acquisition, net of tax

 

 

—

 

 

 

—

 

 

 

1,138

 

 

 

—

 

 

 

—

 

Less: escrow recovery from Doral Healthcare Finance, net of tax

 

 

—

 

 

 

—

 

 

 

195

 

 

 

—

 

 

 

—

 

Adjusted net income

 

$

4,220

 

 

$

4,652

 

 

$

2,636

 

 

$

2,807

 

 

$

2,382

 

Effect of noncontrolling interests and preferred shares

 

 

(196

)

 

 

(195

)

 

 

(192

)

 

 

(786

)

 

 

(779

)

Adjusted net income available to common stockholders

 

$

4,024

 

 

$

4,457

 

 

$

2,444

 

 

$

2,021

 

 

$

1,603

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

 

18,587,821

 

 

 

17,813,825

 

 

 

18,428,663

 

 

 

14,261,717

 

 

 

10,602,155

 

Less: adjusted effects of assumed Preferred Stock conversion

 

 

676,351

 

 

 

—

 

 

 

676,351

 

 

 

—

 

 

 

676,351

 

Adjusted weighted average shares outstanding - diluted

 

 

17,911,470

 

 

 

17,813,825

 

 

 

17,752,312

 

 

 

14,261,717

 

 

 

9,925,804

 

Adjusted diluted earnings per common share

 

$

0.22

 

 

$

0.25

 

 

$

0.14

 

 

$

0.14

 

 

$

0.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common equity

 

$

252,599

 

 

N/A

 

 

$

234,555

 

 

N/A

 

 

N/A

 

Less: average contribution impact of DMI transaction

 

 

1,708

 

 

N/A

 

 

 

3,549

 

 

N/A

 

 

N/A

 

Adjusted average common equity

 

 

250,891

 

 

N/A

 

 

 

231,006

 

 

N/A

 

 

N/A

 

Adjusted return on average common equity

 

 

6.36

%

 

N/A

 

 

 

4.29

%

 

N/A

 

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

$

1,565,698

 

 

N/A

 

 

$

1,449,791

 

 

N/A

 

 

N/A

 

Less: average contribution impact of DMI transaction

 

 

1,708

 

 

N/A

 

 

 

3,549

 

 

N/A

 

 

N/A

 

Adjusted average total assets

 

 

1,563,990

 

 

N/A

 

 

 

1,446,242

 

 

N/A

 

 

N/A

 

Adjusted return on average total assets

 

 

1.07

%

 

N/A

 

 

 

0.74

%

 

N/A

 

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

5,732

 

 

$

4,457

 

 

$

13,852

 

 

$

2,021

 

 

$

9,495

 

Average tangible common equity

 

 

222,884

 

 

 

215,846

 

 

 

205,204

 

 

 

156,888

 

 

 

109,944

 

Return on average tangible common equity

 

 

10.20

%

 

 

8.28

%

 

 

27.38

%

 

 

5.11

%

 

 

34.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

23,231

 

 

$

24,645

 

 

$

19,725

 

 

$

21,329

 

 

$

20,395

 

Non-interest income

 

 

6,298

 

 

 

4,769

 

 

 

16,659

 

 

 

3,721

 

 

 

15,804

 

Operating revenue

 

 

29,529

 

 

 

29,414

 

 

 

36,384

 

 

 

25,050

 

 

 

36,199

 

Less: gain on branch sale

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,619

 

Less: bargain purchase gain

 

 

1,708

 

 

 

—

 

 

 

12,509

 

 

 

—

 

 

 

—

 

Less: escrow recovery from Doral Healthcare Finance

 

 

—

 

 

 

—

 

 

 

300

 

 

 

—

 

 

 

—

 

Adjusted operating revenue

 

$

27,821

 

 

$

29,414

 

 

$

23,575

 

 

$

25,050

 

 

$

23,580

 

Total non-interest expenses

 

$

20,545

 

 

$

19,635

 

 

$

20,783

 

 

$

19,685

 

 

$

18,461

 

Less: merger and acquisition expenses

 

 

—

 

 

 

—

 

 

 

243

 

 

 

—

 

 

 

—

 

Less: incremental bonus related to acquisition

 

 

—

 

 

 

—

 

 

 

1,750

 

 

 

—

 

 

 

—

 

Adjusted non-interest expenses

 

$

20,545

 

 

$

19,635

 

 

$

18,790

 

 

$

19,685

 

 

$

18,461

 

Efficiency ratio

 

 

73.85

%

 

 

66.75

%

 

 

79.70

%

 

 

78.58

%

 

 

78.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net non-interest expense to average assets ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expenses

 

$

20,545

 

 

$

19,635

 

 

$

20,783

 

 

$

19,685

 

 

$

18,461

 

Less: merger and acquisition expenses

 

 

—

 

 

 

—

 

 

 

243

 

 

 

—

 

 

 

—

 

Less: incremental bonus related to acquisition

 

 

—

 

 

 

—

 

 

 

1,750

 

 

 

—

 

 

 

—

 

Adjusted non-interest expense

 

$

20,545

 

 

$

19,635

 

 

$

18,790

 

 

$

19,685

 

 

$

18,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income

 

$

6,298

 

 

$

4,769

 

 

$

16,659

 

 

$

3,721

 

 

$

15,804

 

Less: bargain purchase gain

 

 

1,708

 

 

 

—

 

 

 

12,509

 

 

 

—

 

 

 

—

 

Less: gain on branch sale

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,619

 

Less: escrow recovery from Doral Healthcare Finance

 

 

—

 

 

 

—

 

 

 

300

 

 

 

—

 

 

 

—

 

Adjusted non-interest income

 

$

4,590

 

 

$

4,769

 

 

$

3,850

 

 

$

3,721

 

 

$

3,185

 

Adjusted net non-interest expenses

 

$

15,955

 

 

$

14,866

 

 

$

14,940

 

 

$

15,964

 

 

$

15,276

 

Average total assets

 

$

1,565,698

 

 

$

1,511,045

 

 

$

1,449,791

 

 

$

1,427,475

 

 

$

1,354,207

 

Net non-interest expense to average assets ratio

 

 

4.04

%

 

 

3.95

%

 

 

4.18

%

 

 

4.44

%

 

 

4.48

%

 

9

 

 

 

As of and for the Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands, except per share amounts)

 

2015

 

 

2015

 

 

2015

 

 

2014

 

 

2014

 

Reported yield on loans

 

 

8.34

%

 

 

9.49

%

 

 

8.50

%

 

 

8.98

%

 

 

8.66

%

Effect of accretion income on acquired loans

 

 

(0.38

%)

 

 

(0.53

%)

 

 

(0.46

%)

 

 

(0.69

%)

 

 

(0.63

%)

Adjusted yield on loans

 

 

7.96

%

 

 

8.96

%

 

 

8.04

%

 

 

8.29

%

 

 

8.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported net interest margin

 

 

6.45

%

 

 

7.20

%

 

 

6.11

%

 

 

6.58

%

 

 

6.69

%

Effect of accretion income on acquired loans

 

 

(0.31

%)

 

 

(0.42

%)

 

 

(0.35

%)

 

 

(0.53

%)

 

 

(0.50

%)

Adjusted net interest margin

 

 

6.14

%

 

 

6.78

%

 

 

5.76

%

 

 

6.05

%

 

 

6.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

263,919

 

 

$

257,479

 

 

$

252,677

 

 

$

237,509

 

 

$

149,931

 

Less: Preferred stock liquidation preference

 

 

9,746

 

 

 

9,746

 

 

 

9,746

 

 

 

9,746

 

 

 

9,746

 

Total common stockholders' equity

 

 

254,173

 

 

 

247,733

 

 

 

242,931

 

 

 

227,763

 

 

 

140,185

 

Less: Goodwill and other intangibles

 

 

28,995

 

 

 

30,174

 

 

 

30,211

 

 

 

29,057

 

 

 

29,783

 

Tangible common stockholders' equity

 

$

225,178

 

 

$

217,559

 

 

$

212,720

 

 

$

198,706

 

 

$

110,402

 

Common shares outstanding

 

 

18,040,072

 

 

 

18,041,072

 

 

 

17,963,783

 

 

 

17,963,783

 

 

 

9,886,778

 

Tangible book value per share

 

$

12.48

 

 

$

12.06

 

 

$

11.84

 

 

$

11.06

 

 

$

11.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets at end of period

 

$

1,581,463

 

 

$

1,529,259

 

 

$

1,472,743

 

 

$

1,447,898

 

 

$

1,347,798

 

Less: Goodwill and other intangibles

 

 

28,995

 

 

 

30,174

 

 

 

30,211

 

 

 

29,057

 

 

 

29,783

 

Adjusted total assets at period end

 

$

1,552,468

 

 

$

1,499,085

 

 

$

1,442,532

 

 

$

1,418,841

 

 

$

1,318,015

 

Tangible common stockholders' equity ratio

 

 

14.50

%

 

 

14.51

%

 

 

14.75

%

 

 

14.00

%

 

 

8.38

%

1)

The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of such financial performance.  The non-GAAP measures used by the Company include the following:

 

 

·

"Common stockholders' equity" is defined as total stockholders' equity at end of period less the liquidation preference value of the preferred stock.

 

 

·

“Adjusted diluted earnings per common share” is defined as adjusted net income available to common stockholders divided by adjusted weighted average diluted common shares outstanding.  Excluded from net income available to common stockholders are material gains and expenses related to merger and acquisition-related activities, net of tax. In our judgment, the adjustments made to net income available to common stockholders allow management and investors to better assess our performance in relation to our core net income by removing the volatility associated with certain acquisition-related items and other discrete items that are unrelated to our core business.  Weighted average diluted common shares outstanding are adjusted as a result of changes in their dilutive properties given the gain and expense adjustments described herein.  

 

 

·

“Adjusted average common equity” is defined as average common equity less the average contribution impact of acquisitions.

 

 

·

“Adjusted average total assets” is defined as average total assets less the average contribution impact of acquisitions.

 

 

·

“Adjusted return on average common equity” is defined as adjusted net income available to common stockholders divided by adjusted average common equity.

 

 

·

“Adjusted return on average total assets” is defined as adjusted net income available to common stockholders divided by adjusted average total assets.

 

 

·

"Net interest margin" is defined as net interest income divided by average interest-earning assets.

 

 

·

"Tangible common stockholders' equity" is common stockholders' equity less goodwill and other intangible assets.

 

 

·

"Total tangible assets" is defined as total assets less goodwill and other intangible assets.

 

 

·

"Tangible book value per share" is defined as tangible common stockholders' equity divided by total common shares outstanding. This measure is important to investors interested in changes from period-to-period in book value per share exclusive of changes in intangible assets.

 

 

·

"Tangible common stockholders' equity ratio" is defined as the ratio of tangible common stockholders' equity divided by total tangible assets. We believe that this measure is important to many investors in the marketplace who are interested in relative changes from period-to period in common equity and total assets, each exclusive of changes in intangible assets.

 

 

·

"Return on Average Tangible Common Equity" is defined as net income available to common stockholders divided by average tangible common stockholders' equity.

 

10

 

 

·

"Efficiency ratio" is defined as non-interest expenses divided by our operating revenue, which is equal to net interest income plus non-interest income. Also excluded are material gains and expenses related to merger and acquisition-related activities, including divestitures. In our judgment, the adjustments made to operating revenue allow management and investors to better assess our performance in relation to our core operating revenue by removing the volatility associated with certain acquisition-related items and other discrete items that are unrelated to our core business. 

 

 

·

"Net non-interest expense to average total assets" is defined as non-interest expenses net of non-interest income divided by total average assets. Excluded are material gains and expenses related to merger and acquisition-related activities, including divestitures.  This metric is used by our management to better assess our operating efficiency.  

 

 

·

"Adjusted yield on loans" is our yield on loans after excluding loan accretion from our acquired loan portfolio.  Our management uses this metric to better assess the impact of purchase accounting on our yield on loans, as the effect of loan discount accretion is expected to decrease as the acquired loans roll off of our balance sheet.

 

 

·

“Adjusted net interest margin” is net interest margin after excluding loan accretion from the acquired loan portfolio.  Our management uses this metric to better assess the impact of purchase accounting on net interest margin, as the effect of loan discount accretion is expected to decrease as the acquired loans mature or roll off of our balance sheet.  

 

2)

Asset quality ratios exclude loans held for sale.

 

3)

Current quarter ratios are preliminary and, beginning January 1, 2015, are calculated under the requirements of Basel III.

 


Source: Triumph Bancorp, Inc.

 

###

 

Investor Relations:

Luke Wyse

Vice President, Finance & Investor Relations

lwyse@triumphllc.com

214-365-6936

 

Media Contact:

Amanda Tavackoli

Vice President, Marketing & Communication

atavackoli@triumphllc.com

214-365-6930

11