EX-99.1 2 tbk-ex991_6.htm EX-99.1 tbk-ex991_6.htm

 

Exhibit 99.1

Triumph Bancorp Reports Third Quarter Net Income to Common Stockholders of $14.3 Million

DALLAS – October 16, 2019 (GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”) today announced earnings and operating results for the third quarter of 2019.

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 press release.

2019 Third Quarter Highlights and Recent Developments

 

•

For the third quarter of 2019, net income available to common stockholders was $14.3 million. Diluted earnings per share were $0.56.  

 

•

Net interest margin (“NIM”) was 5.85% for the quarter ended September 30, 2019.

 

•

Total loans held for investment increased $373.5 million, or 9.7%, to $4.209 billion at September 30, 2019. Average loans for the quarter increased $235.7 million, or 6.4%, to $3.944 billion.

 

•

Triumph Business Capital grew period-end clients to 6,471 clients, which is an increase of 16 clients, or 0.2%. The total dollar value of invoices purchased for the quarter ended September 30, 2019 was $1.451 billion with an average invoice price of $1,628.  

 

•

At September 30, 2019, there were 163 clients utilizing the TriumphPay platform, which is an increase of 17 clients, or 11.6%, during the quarter. For the quarter ended September 30, 2019, TriumphPay processed 168,562 invoices paying 30,333 distinct carriers a total of $190.3 million.

 

•

During the quarter ended September 30, 2019, we repurchased 850,093 shares into treasury stock under our stock repurchase program at an average price of $29.38, for a total of $25.0 million. During the nine months ended September 30, 2019, we have repurchased 1,688,234 shares into treasury stock under our stock repurchase programs at an average price of $29.56, for a total of $49.9 million, effectively completing both of our previously announced $25.0 million stock repurchase programs.

Repurchase Program Authorization

On October 16, 2019 our board of directors authorized us to repurchase up to an additional $50.0 million of our outstanding common stock. We may repurchase these shares from time to time in open market transactions or through privately negotiated transactions at our discretion.  The amount, timing and nature of any share repurchases will be based on a variety of factors, including the trading price of our common stock, applicable securities laws restrictions, regulatory limitations and market and economic factors.  This repurchase program is authorized for a period of up to one year and does not require us to repurchase any specific number of shares.  The repurchase program may be modified, suspended or discontinued at any time, at our discretion.

Balance Sheet

Total loans held for investment increased $373.5 million, or 9.7%, during the third quarter to $4.209 billion at September 30, 2019. The commercial finance portfolio increased $89.0 million, or 7.5%, to $1.276 billion, the national lending portfolio increased $249.4 million, or 52.3%, to $726.6 million, and the community banking portfolio increased $35.1 million, or 1.6%, to $2.207 billion during the quarter.

Total deposits were $3.698 billion at September 30, 2019, an increase of $38.9 million, or 1.1%, in the third quarter of 2019.  Non-interest-bearing deposits accounted for 20% of total deposits and non-time deposits accounted for 57% of total deposits at September 30, 2019.

1

 

Net Interest Income

We earned net interest income for the quarter ended September 30, 2019 of $64.8 million compared to $63.4 million for the quarter ended June 30, 2019.

Yields on loans for the quarter ended September 30, 2019 were down 32 bps from the prior quarter to 7.63%. The average cost of our total deposits was 1.19% for the quarter ended September 30, 2019 compared to 1.14% for the quarter ended June 30, 2019.  

Asset Quality

Non-performing assets were 0.91% of total assets at September 30, 2019 compared to 0.86% of total assets at June 30, 2019.  The ratio of past due to total loans increased to 2.47% at September 30, 2019 from 1.90% at June 30, 2019. We recorded total net charge-offs of $0.4 million, or 0.01% of average loans, for the quarter ended September 30, 2019 compared to net charge-offs of $1.9 million, or 0.05% of average loans, for the quarter ended June 30, 2019.  

We recorded a provision for loan losses of $2.9 million for the quarter ended September 30, 2019 compared to a provision of $3.7 million for the quarter ended June 30, 2019. From June 30, 2019 to September 30, 2019, our ALLL increased from $29.4 million or 0.77% of total loans to $31.9 million or 0.76% of total loans.

Non-Interest Income and Expense

We earned non-interest income for the quarter ended September 30, 2019 of $7.7 million compared to $7.6 million for the quarter ended June 30, 2019.

For the quarter ended September 30, 2019, non-interest expense totaled $52.2 million, compared to $50.7 million for the quarter ended June 30, 2019.  

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 7:00 a.m. Central Time on Thursday, October 17, 2019. Todd Ritterbusch, Chief Lending Officer, will also be available for questions.

To participate in the live conference call, please dial 1-855-940-9472 (Canada: 1-855-669-9657)  and request to be joined into the Triumph Bancorp, Inc. call.  A simultaneous audio-only webcast may be accessed via the Company's website at www.triumphbancorp.com through the Investor Relations, News & Events, Webcasts and Presentations links, or through a direct link here at: https://services.choruscall.com/links/tbk191017.html. An archive of this conference call will subsequently be available at this same location on the Company’s website.

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About Triumph

Triumph Bancorp, Inc. (Nasdaq: TBK) is a financial holding company headquartered in Dallas, Texas.  Triumph offers a diversified line of community banking, national lending, and commercial finance products through its bank subsidiary, TBK Bank, SSB. www.triumphbancorp.com

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: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; risks related to the integration of acquired businesses (including our acquisitions of First Bancorp of Durango, Inc., Southern Colorado Corp., and the operating assets of Interstate Capital Corporation and certain of its affiliates) 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 nonperforming 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; 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 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; and increases in our capital requirements.

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 February 12, 2019.

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 our 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

 

 

As of and for the Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

Financial Highlights:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,039,697

 

 

$

4,783,189

 

 

$

4,529,783

 

 

$

4,559,779

 

 

$

4,537,102

 

 

$

5,039,697

 

 

$

4,537,102

 

Loans held for investment

 

$

4,209,417

 

 

$

3,835,903

 

 

$

3,612,869

 

 

$

3,608,644

 

 

$

3,512,143

 

 

$

4,209,417

 

 

$

3,512,143

 

Deposits

 

$

3,697,833

 

 

$

3,658,978

 

 

$

3,314,440

 

 

$

3,450,349

 

 

$

3,439,049

 

 

$

3,697,833

 

 

$

3,439,049

 

Net income available to common stockholders

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

41,835

 

 

$

33,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios - Annualized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.17

%

 

 

1.09

%

 

 

1.33

%

 

 

1.60

%

 

 

0.90

%

 

 

1.20

%

 

 

1.21

%

Return on average total equity

 

 

8.79

%

 

 

7.83

%

 

 

9.30

%

 

 

11.35

%

 

 

5.88

%

 

 

8.63

%

 

 

8.40

%

Return on average common equity

 

 

8.79

%

 

 

7.83

%

 

 

9.30

%

 

 

11.40

%

 

 

5.85

%

 

 

8.63

%

 

 

8.41

%

Return on average tangible common equity (1)

 

 

12.56

%

 

 

11.19

%

 

 

13.43

%

 

 

16.73

%

 

 

7.57

%

 

 

12.38

%

 

 

10.27

%

Yield on loans(2)

 

 

7.63

%

 

 

7.95

%

 

 

7.99

%

 

 

8.14

%

 

 

8.33

%

 

 

7.85

%

 

 

8.05

%

Cost of interest bearing deposits

 

 

1.49

%

 

 

1.42

%

 

 

1.24

%

 

 

1.15

%

 

 

1.08

%

 

 

1.39

%

 

 

0.96

%

Cost of total deposits

 

 

1.19

%

 

 

1.14

%

 

 

0.99

%

 

 

0.91

%

 

 

0.85

%

 

 

1.11

%

 

 

0.76

%

Cost of total funds

 

 

1.41

%

 

 

1.40

%

 

 

1.28

%

 

 

1.14

%

 

 

1.16

%

 

 

1.36

%

 

 

1.06

%

Net interest margin(2)

 

 

5.85

%

 

 

5.99

%

 

 

6.15

%

 

 

6.34

%

 

 

6.59

%

 

 

5.99

%

 

 

6.35

%

Net non-interest expense to average assets

 

 

3.64

%

 

 

3.68

%

 

 

3.70

%

 

 

3.55

%

 

 

4.19

%

 

 

3.67

%

 

 

3.76

%

Adjusted net non-interest expense to average assets (1)

 

 

3.64

%

 

 

3.68

%

 

 

3.70

%

 

 

3.55

%

 

 

3.62

%

 

 

3.67

%

 

 

3.55

%

Efficiency ratio

 

 

71.93

%

 

 

71.37

%

 

 

70.54

%

 

 

65.52

%

 

 

72.15

%

 

 

71.29

%

 

 

67.50

%

Adjusted efficiency ratio (1)

 

 

71.93

%

 

 

71.37

%

 

 

70.54

%

 

 

65.52

%

 

 

63.49

%

 

 

71.29

%

 

 

63.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due to total loans

 

 

2.47

%

 

 

1.90

%

 

 

2.33

%

 

 

2.41

%

 

 

2.23

%

 

 

2.47

%

 

 

2.23

%

Non-performing loans to total loans

 

 

1.00

%

 

 

0.96

%

 

 

0.95

%

 

 

1.00

%

 

 

1.13

%

 

 

1.00

%

 

 

1.13

%

Non-performing assets to total assets

 

 

0.91

%

 

 

0.86

%

 

 

0.84

%

 

 

0.84

%

 

 

0.93

%

 

 

0.91

%

 

 

0.93

%

ALLL to non-performing loans

 

 

75.58

%

 

 

79.91

%

 

 

80.70

%

 

 

76.47

%

 

 

68.82

%

 

 

75.58

%

 

 

68.82

%

ALLL to total loans

 

 

0.76

%

 

 

0.77

%

 

 

0.76

%

 

 

0.76

%

 

 

0.78

%

 

 

0.76

%

 

 

0.78

%

Net charge-offs to average loans

 

 

0.01

%

 

 

0.05

%

 

 

0.03

%

 

 

0.05

%

 

 

0.12

%

 

 

0.09

%

 

 

0.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital to average assets(4)

 

 

10.37

%

 

 

10.84

%

 

 

11.32

%

 

 

11.08

%

 

 

11.75

%

 

 

10.37

%

 

 

11.75

%

Tier 1 capital to risk-weighted assets(4)

 

 

10.08

%

 

 

11.08

%

 

 

11.76

%

 

 

11.49

%

 

 

11.16

%

 

 

10.08

%

 

 

11.16

%

Common equity tier 1 capital to risk-weighted assets(4)

 

 

9.26

%

 

 

10.19

%

 

 

10.81

%

 

 

10.55

%

 

 

9.96

%

 

 

9.26

%

 

 

9.96

%

Total capital to risk-weighted assets(4)

 

 

11.79

%

 

 

12.88

%

 

 

13.62

%

 

 

13.35

%

 

 

13.05

%

 

 

11.79

%

 

 

13.05

%

Total equity to total assets

 

 

12.57

%

 

 

13.45

%

 

 

14.27

%

 

 

13.96

%

 

 

13.59

%

 

 

12.57

%

 

 

13.59

%

Tangible common stockholders' equity to tangible assets(1)

 

 

9.10

%

 

 

9.78

%

 

 

10.37

%

 

 

10.03

%

 

 

9.35

%

 

 

9.10

%

 

 

9.35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

24.99

 

 

$

24.56

 

 

$

24.19

 

 

$

23.62

 

 

$

23.10

 

 

$

24.99

 

 

$

23.10

 

Tangible book value per share (1)

 

$

17.40

 

 

$

17.13

 

 

$

16.82

 

 

$

16.22

 

 

$

15.42

 

 

$

17.40

 

 

$

15.42

 

Basic earnings per common share

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.68

 

 

$

0.34

 

 

$

1.60

 

 

$

1.37

 

Diluted earnings per common share

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.67

 

 

$

0.34

 

 

$

1.59

 

 

$

1.35

 

Adjusted diluted earnings per common share(1)

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.67

 

 

$

0.51

 

 

$

1.59

 

 

$

1.53

 

Shares outstanding end of period

 

 

25,357,985

 

 

 

26,198,308

 

 

 

26,709,411

 

 

 

26,949,936

 

 

 

26,279,761

 

 

 

25,357,985

 

 

 

26,279,761

 



4

 

Unaudited consolidated balance sheet as of:

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

 

$

115,043

 

 

$

209,305

 

 

$

171,950

 

 

$

234,939

 

 

$

282,409

 

Securities - available for sale

 

 

302,917

 

 

 

329,991

 

 

 

339,465

 

 

 

336,423

 

 

 

355,981

 

Securities - held to maturity

 

 

8,517

 

 

 

8,573

 

 

 

8,499

 

 

 

8,487

 

 

 

8,403

 

Equity securities

 

 

5,543

 

 

 

5,479

 

 

 

5,183

 

 

 

5,044

 

 

 

4,981

 

Loans held for sale

 

 

7,499

 

 

 

2,877

 

 

 

610

 

 

 

2,106

 

 

 

683

 

Loans held for investment

 

 

4,209,417

 

 

 

3,835,903

 

 

 

3,612,869

 

 

 

3,608,644

 

 

 

3,512,143

 

Allowance for loan and lease losses

 

 

(31,895

)

 

 

(29,416

)

 

 

(27,605

)

 

 

(27,571

)

 

 

(27,256

)

Loans, net

 

 

4,177,522

 

 

 

3,806,487

 

 

 

3,585,264

 

 

 

3,581,073

 

 

 

3,484,887

 

FHLB and other restricted stock

 

 

23,960

 

 

 

18,037

 

 

 

21,191

 

 

 

15,943

 

 

 

23,109

 

Premises and equipment, net

 

 

87,112

 

 

 

84,998

 

 

 

84,931

 

 

 

83,392

 

 

 

82,935

 

Other real estate owned ("OREO"), net

 

 

2,849

 

 

 

3,351

 

 

 

3,073

 

 

 

2,060

 

 

 

2,442

 

Goodwill and intangible assets, net

 

 

192,440

 

 

 

194,668

 

 

 

197,015

 

 

 

199,417

 

 

 

201,842

 

Bank-owned life insurance

 

 

40,724

 

 

 

40,847

 

 

 

40,667

 

 

 

40,509

 

 

 

40,339

 

Deferred tax asset, net

 

 

5,971

 

 

 

7,278

 

 

 

7,608

 

 

 

8,438

 

 

 

8,137

 

Other assets

 

 

69,600

 

 

 

71,298

 

 

 

64,327

 

 

 

41,948

 

 

 

40,954

 

Total assets

 

$

5,039,697

 

 

$

4,783,189

 

 

$

4,529,783

 

 

$

4,559,779

 

 

$

4,537,102

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

754,233

 

 

$

684,223

 

 

$

667,597

 

 

$

724,527

 

 

$

697,903

 

Interest bearing deposits

 

 

2,943,600

 

 

 

2,974,755

 

 

 

2,646,843

 

 

 

2,725,822

 

 

 

2,741,146

 

Total deposits

 

 

3,697,833

 

 

 

3,658,978

 

 

 

3,314,440

 

 

 

3,450,349

 

 

 

3,439,049

 

Customer repurchase agreements

 

 

14,124

 

 

 

12,788

 

 

 

3,727

 

 

 

4,485

 

 

 

13,248

 

Federal Home Loan Bank advances

 

 

530,000

 

 

 

305,000

 

 

 

405,000

 

 

 

330,000

 

 

 

330,000

 

Subordinated notes

 

 

49,010

 

 

 

48,983

 

 

 

48,956

 

 

 

48,929

 

 

 

48,903

 

Junior subordinated debentures

 

 

39,443

 

 

 

39,320

 

 

 

39,200

 

 

 

39,083

 

 

 

38,966

 

Other liabilities

 

 

75,594

 

 

 

74,758

 

 

 

72,244

 

 

 

50,326

 

 

 

50,295

 

Total liabilities

 

 

4,406,004

 

 

 

4,139,827

 

 

 

3,883,567

 

 

 

3,923,172

 

 

 

3,920,461

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock series A

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,550

 

Preferred stock series B

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,108

 

Common stock

 

 

272

 

 

 

271

 

 

 

271

 

 

 

271

 

 

 

264

 

Additional paid-in-capital

 

 

472,368

 

 

 

471,145

 

 

 

470,292

 

 

 

469,341

 

 

 

458,920

 

Treasury stock, at cost

 

 

(52,632

)

 

 

(27,468

)

 

 

(9,881

)

 

 

(2,288

)

 

 

(2,285

)

Retained earnings

 

 

212,321

 

 

 

198,004

 

 

 

185,274

 

 

 

170,486

 

 

 

152,401

 

Accumulated other comprehensive income

 

 

1,364

 

 

 

1,410

 

 

 

260

 

 

 

(1,203

)

 

 

(2,317

)

Total equity

 

 

633,693

 

 

 

643,362

 

 

 

646,216

 

 

 

636,607

 

 

 

616,641

 

Total liabilities and equity

 

$

5,039,697

 

 

$

4,783,189

 

 

$

4,529,783

 

 

$

4,559,779

 

 

$

4,537,102

 


5

 

Unaudited consolidated statement of income:

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

50,249

 

 

$

47,910

 

 

$

45,094

 

 

$

44,435

 

 

$

41,257

 

 

$

143,253

 

 

$

116,288

 

Factored receivables, including fees

 

 

25,570

 

 

 

25,558

 

 

 

24,556

 

 

 

28,070

 

 

 

27,939

 

 

 

75,684

 

 

 

64,033

 

Securities

 

 

2,784

 

 

 

2,667

 

 

 

2,644

 

 

 

2,314

 

 

 

1,551

 

 

 

8,095

 

 

 

4,040

 

FHLB and other restricted stock

 

 

209

 

 

 

146

 

 

 

192

 

 

 

154

 

 

 

147

 

 

 

547

 

 

 

353

 

Cash deposits

 

 

603

 

 

 

1,022

 

 

 

778

 

 

 

877

 

 

 

865

 

 

 

2,403

 

 

 

2,412

 

Total interest income

 

 

79,415

 

 

 

77,303

 

 

 

73,264

 

 

 

75,850

 

 

 

71,759

 

 

 

229,982

 

 

 

187,126

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

11,036

 

 

 

10,010

 

 

 

8,218

 

 

 

7,931

 

 

 

6,219

 

 

 

29,264

 

 

 

15,127

 

Subordinated notes

 

 

840

 

 

 

839

 

 

 

839

 

 

 

839

 

 

 

837

 

 

 

2,518

 

 

 

2,512

 

Junior subordinated debentures

 

 

719

 

 

 

744

 

 

 

760

 

 

 

717

 

 

 

714

 

 

 

2,223

 

 

 

2,024

 

Other borrowings

 

 

2,055

 

 

 

2,291

 

 

 

2,136

 

 

 

1,482

 

 

 

2,207

 

 

 

6,482

 

 

 

5,294

 

Total interest expense

 

 

14,650

 

 

 

13,884

 

 

 

11,953

 

 

 

10,969

 

 

 

9,977

 

 

 

40,487

 

 

 

24,957

 

Net interest income

 

 

64,765

 

 

 

63,419

 

 

 

61,311

 

 

 

64,881

 

 

 

61,782

 

 

 

189,495

 

 

 

162,169

 

Provision for loan losses

 

 

2,865

 

 

 

3,681

 

 

 

1,014

 

 

 

1,910

 

 

 

6,803

 

 

 

7,560

 

 

 

14,257

 

Net interest income after provision for loan losses

 

 

61,900

 

 

 

59,738

 

 

 

60,297

 

 

 

62,971

 

 

 

54,979

 

 

 

181,935

 

 

 

147,912

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

1,937

 

 

 

1,700

 

 

 

1,606

 

 

 

1,702

 

 

 

1,412

 

 

 

5,243

 

 

 

3,767

 

Card income

 

 

2,015

 

 

 

2,071

 

 

 

1,844

 

 

 

1,999

 

 

 

1,877

 

 

 

5,930

 

 

 

4,515

 

Net OREO gains (losses) and valuation adjustments

 

 

(56

)

 

 

148

 

 

 

209

 

 

 

37

 

 

 

65

 

 

 

301

 

 

 

(551

)

Net gains (losses) on sale of securities

 

 

19

 

 

 

14

 

 

 

(11

)

 

 

—

 

 

 

—

 

 

 

22

 

 

 

(272

)

Fee income

 

 

1,624

 

 

 

1,519

 

 

 

1,612

 

 

 

1,636

 

 

 

1,593

 

 

 

4,755

 

 

 

3,514

 

Insurance commissions

 

 

1,247

 

 

 

961

 

 

 

919

 

 

 

846

 

 

 

1,113

 

 

 

3,127

 

 

 

2,646

 

Gain on sale of subsidiary

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,071

 

Other

 

 

956

 

 

 

1,210

 

 

 

1,359

 

 

 

574

 

 

 

(1

)

 

 

3,525

 

 

 

1,486

 

Total non-interest income

 

 

7,742

 

 

 

7,623

 

 

 

7,538

 

 

 

6,794

 

 

 

6,059

 

 

 

22,903

 

 

 

16,176

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

28,717

 

 

 

28,120

 

 

 

26,439

 

 

 

25,586

 

 

 

24,695

 

 

 

83,276

 

 

 

64,626

 

Occupancy, furniture and equipment

 

 

4,505

 

 

 

4,502

 

 

 

4,522

 

 

 

4,402

 

 

 

3,553

 

 

 

13,529

 

 

 

9,621

 

FDIC insurance and other regulatory assessments

 

 

(2

)

 

 

303

 

 

 

299

 

 

 

184

 

 

 

363

 

 

 

600

 

 

 

945

 

Professional fees

 

 

1,969

 

 

 

1,550

 

 

 

1,865

 

 

 

1,837

 

 

 

3,384

 

 

 

5,384

 

 

 

7,102

 

Amortization of intangible assets

 

 

2,228

 

 

 

2,347

 

 

 

2,402

 

 

 

2,438

 

 

 

2,064

 

 

 

6,977

 

 

 

4,542

 

Advertising and promotion

 

 

1,379

 

 

 

1,796

 

 

 

1,604

 

 

 

1,036

 

 

 

1,609

 

 

 

4,779

 

 

 

3,938

 

Communications and technology

 

 

5,382

 

 

 

4,988

 

 

 

4,874

 

 

 

4,388

 

 

 

7,252

 

 

 

15,244

 

 

 

13,882

 

Other

 

 

7,975

 

 

 

7,098

 

 

 

6,561

 

 

 

7,091

 

 

 

6,026

 

 

 

21,634

 

 

 

15,735

 

Total non-interest expense

 

 

52,153

 

 

 

50,704

 

 

 

48,566

 

 

 

46,962

 

 

 

48,946

 

 

 

151,423

 

 

 

120,391

 

Net income before income tax

 

 

17,489

 

 

 

16,657

 

 

 

19,269

 

 

 

22,803

 

 

 

12,092

 

 

 

53,415

 

 

 

43,697

 

Income tax expense

 

 

3,172

 

 

 

3,927

 

 

 

4,481

 

 

 

4,718

 

 

 

2,922

 

 

 

11,580

 

 

 

10,074

 

Net income

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

9,170

 

 

$

41,835

 

 

$

33,623

 

Dividends on preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(195

)

 

 

—

 

 

 

(578

)

Net income available to common stockholders

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

41,835

 

 

$

33,045

 

 


6

 

Earnings per share:

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income to common stockholders

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

41,835

 

 

$

33,045

 

Weighted average common shares outstanding

 

 

25,621,054

 

 

 

26,396,351

 

 

 

26,679,724

 

 

 

26,666,554

 

 

 

26,178,194

 

 

 

26,228,499

 

 

 

24,159,543

 

Basic earnings per common share

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.68

 

 

$

0.34

 

 

$

1.60

 

 

$

1.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income to common stockholders

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

41,835

 

 

$

33,045

 

Dilutive effect of preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

195

 

 

 

—

 

 

 

578

 

Net income to common stockholders - diluted

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

9,170

 

 

$

41,835

 

 

$

33,623

 

Weighted average common shares outstanding

 

 

25,621,054

 

 

 

26,396,351

 

 

 

26,679,724

 

 

 

26,666,554

 

 

 

26,178,194

 

 

 

26,228,499

 

 

 

24,159,543

 

Dilutive effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assumed conversion of Preferred A

 

 

—

 

 

 

—

 

 

 

—

 

 

 

89,240

 

 

 

315,773

 

 

 

—

 

 

 

315,773

 

Assumed conversion of Preferred B

 

 

—

 

 

 

—

 

 

 

—

 

 

 

100,176

 

 

 

354,471

 

 

 

—

 

 

 

354,471

 

Assumed exercises of stock options

 

 

60,068

 

 

 

59,962

 

 

 

64,166

 

 

 

76,219

 

 

 

90,320

 

 

 

61,054

 

 

 

86,728

 

Restricted stock awards

 

 

45,631

 

 

 

30,110

 

 

 

49,795

 

 

 

46,457

 

 

 

45,796

 

 

 

40,572

 

 

 

55,087

 

Restricted stock units

 

 

3,045

 

 

 

—

 

 

 

—

 

 

 

1,303

 

 

 

7,276

 

 

 

57

 

 

 

2,706

 

Performance stock units

 

 

4,673

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,558

 

 

 

—

 

Weighted average shares outstanding - diluted

 

 

25,734,471

 

 

 

26,486,423

 

 

 

26,793,685

 

 

 

26,979,949

 

 

 

26,991,830

 

 

 

26,331,740

 

 

 

24,974,308

 

Diluted earnings per common share

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.67

 

 

$

0.34

 

 

$

1.59

 

 

$

1.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

Assumed conversion of Preferred A

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Assumed conversion of Preferred B

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Stock options

 

 

67,023

 

 

 

70,037

 

 

 

50,752

 

 

 

51,952

 

 

 

51,952

 

 

 

67,023

 

 

 

51,952

 

Restricted stock awards

 

 

3,209

 

 

 

—

 

 

 

13,290

 

 

 

14,513

 

 

 

14,513

 

 

 

3,209

 

 

 

14,513

 

Restricted stock units

 

 

—

 

 

 

58,400

 

 

 

58,400

 

 

 

—

 

 

 

—

 

 

 

54,077

 

 

 

—

 

Performance stock units

 

 

55,228

 

 

 

70,879

 

 

 

58,400

 

 

 

59,658

 

 

 

59,658

 

 

 

55,228

 

 

 

59,658

 

 

 


7

 

Loans held for investment summarized as of:

  

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

Commercial real estate

 

$

1,115,559

 

 

$

1,098,279

 

 

$

1,093,882

 

 

$

992,080

 

 

$

906,494

 

Construction, land development, land

 

 

164,186

 

 

 

157,861

 

 

 

145,002

 

 

 

179,591

 

 

 

190,920

 

1-4 family residential properties

 

 

186,405

 

 

 

186,070

 

 

 

194,067

 

 

 

190,185

 

 

 

194,752

 

Farmland

 

 

161,447

 

 

 

144,594

 

 

 

156,299

 

 

 

170,540

 

 

 

177,313

 

Commercial

 

 

1,369,505

 

 

 

1,257,330

 

 

 

1,117,640

 

 

 

1,114,971

 

 

 

1,123,598

 

Factored receivables

 

 

599,651

 

 

 

583,131

 

 

 

570,663

 

 

 

617,791

 

 

 

611,285

 

Consumer

 

 

24,967

 

 

 

26,048

 

 

 

27,941

 

 

 

29,822

 

 

 

31,423

 

Mortgage warehouse

 

 

587,697

 

 

 

382,590

 

 

 

307,375

 

 

 

313,664

 

 

 

276,358

 

     Total loans

 

$

4,209,417

 

 

$

3,835,903

 

 

$

3,612,869

 

 

$

3,608,644

 

 

$

3,512,143

 

Our total loans held for investment portfolio consists of traditional community bank loans as well as commercial finance product lines focused on businesses that require specialized financial solutions and national lending product lines that further diversify our lending operations.

Commercial finance loans are further summarized below:

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

Commercial - Equipment

 

$

429,412

 

 

$

395,094

 

 

$

364,447

 

 

$

352,037

 

 

$

323,832

 

Commercial - Asset-based lending

 

 

247,026

 

 

 

208,896

 

 

 

174,447

 

 

 

214,110

 

 

 

273,096

 

Factored receivables

 

 

599,651

 

 

 

583,131

 

 

 

570,663

 

 

 

617,791

 

 

 

611,285

 

     Commercial finance

 

$

1,276,089

 

 

$

1,187,121

 

 

$

1,109,557

 

 

$

1,183,938

 

 

$

1,208,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial finance % of total loans

 

 

30

%

 

 

31

%

 

 

31

%

 

 

33

%

 

 

34

%

National lending loans are further summarized below:

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

Mortgage warehouse

 

$

587,697

 

 

$

382,590

 

 

$

307,375

 

 

$

313,664

 

 

$

276,358

 

Commercial - Liquid credit

 

 

37,386

 

 

 

21,758

 

 

 

960

 

 

 

963

 

 

 

966

 

Commercial - Premium finance

 

 

101,562

 

 

 

72,898

 

 

 

77,389

 

 

 

72,302

 

 

 

75,293

 

National lending

 

$

726,645

 

 

$

477,246

 

 

$

385,724

 

 

$

386,929

 

 

$

352,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

National lending % of total loans

 

 

17

%

 

 

12

%

 

 

11

%

 

 

11

%

 

 

10

%

Additional information pertaining to our loan portfolio, summarized for the quarters ended:

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

Average community banking

 

$

2,193,533

 

 

$

2,166,122

 

 

$

2,103,816

 

 

$

2,012,255

 

 

$

1,748,936

 

Average commercial finance

 

 

1,208,823

 

 

 

1,168,110

 

 

 

1,123,978

 

 

 

1,190,586

 

 

 

1,184,064

 

Average national lending

 

 

541,367

 

 

 

373,755

 

 

 

307,249

 

 

 

329,630

 

 

 

360,719

 

Average total loans

 

$

3,943,723

 

 

$

3,707,987

 

 

$

3,535,043

 

 

$

3,532,471

 

 

$

3,293,719

 

Community banking yield

 

 

5.79

%

 

 

5.88

%

 

 

5.91

%

 

 

5.82

%

 

 

5.75

%

Commercial finance yield

 

 

12.31

%

 

 

12.52

%

 

 

12.50

%

 

 

12.82

%

 

 

13.00

%

National lending yield

 

 

4.63

%

 

 

5.62

%

 

 

5.73

%

 

 

5.44

%

 

 

5.54

%

Total loan yield

 

 

7.63

%

 

 

7.95

%

 

 

7.99

%

 

 

8.14

%

 

 

8.33

%

8

 

Information pertaining to our factoring segment, which includes only factoring originated by our Triumph Business Capital subsidiary, summarized as of and for the quarters ended:

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

Factored receivable period end balance

 

$

562,009,000

 

 

$

544,601,000

 

 

$

534,420,000

 

 

$

588,750,000

 

 

$

579,985,000

 

Yield on average receivable balance

 

 

18.23

%

 

 

18.73

%

 

 

17.96

%

 

 

18.24

%

 

 

18.96

%

Rolling twelve quarter annual charge-off rate

 

 

0.36

%

 

 

0.40

%

 

 

0.39

%

 

 

0.37

%

 

 

0.38

%

Factored receivables - transportation concentration

 

 

83

%

 

 

83

%

 

 

81

%

 

 

83

%

 

 

83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, including fees

 

$

24,869,000

 

 

$

24,762,000

 

 

$

23,803,000

 

 

$

27,578,000

 

 

$

27,420,000

 

Non-interest income

 

 

1,291,000

 

 

 

1,205,000

 

 

 

1,077,000

 

 

 

1,032,000

 

 

 

942,000

 

Factored receivable total revenue

 

 

26,160,000

 

 

 

25,967,000

 

 

 

24,880,000

 

 

 

28,610,000

 

 

 

28,362,000

 

Average net funds employed

 

 

494,198,000

 

 

 

483,203,000

 

 

 

490,241,000

 

 

 

547,996,000

 

 

 

525,499,000

 

Yield on average net funds employed

 

 

21.00

%

 

 

21.55

%

 

 

20.58

%

 

 

20.71

%

 

 

21.41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable purchased

 

$

1,450,905,000

 

 

$

1,408,982,000

 

 

$

1,325,140,000

 

 

$

1,541,332,000

 

 

$

1,503,049,000

 

Number of invoices purchased

 

 

890,986

 

 

 

874,248

 

 

 

789,838

 

 

 

882,042

 

 

 

836,771

 

Average invoice size

 

$

1,628

 

 

$

1,612

 

 

$

1,678

 

 

$

1,747

 

 

$

1,796

 

Average invoice size - transportation

 

$

1,497

 

 

$

1,492

 

 

$

1,541

 

 

$

1,625

 

 

$

1,666

 

Average invoice size - non-transportation

 

$

3,467

 

 

$

3,047

 

 

$

3,276

 

 

$

3,209

 

 

$

3,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net new clients

 

 

16

 

 

 

73

 

 

 

191

 

 

 

259

 

 

 

422

 

Period end clients

 

 

6,471

 

 

 

6,455

 

 

 

6,382

 

 

 

6,191

 

 

 

5,932

 

Deposits summarized as of:

  

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

Non-interest bearing demand

 

$

754,233

 

 

$

684,223

 

 

$

667,597

 

 

$

724,527

 

 

$

697,903

 

 

Interest bearing demand

 

 

587,123

 

 

 

587,164

 

 

 

602,088

 

 

 

615,704

 

 

 

608,775

 

 

Individual retirement accounts

 

 

108,593

 

 

 

111,328

 

 

 

112,696

 

 

 

115,583

 

 

 

118,459

 

 

Money market

 

 

424,162

 

 

 

440,289

 

 

 

372,109

 

 

 

443,663

 

 

 

413,402

 

 

Savings

 

 

356,368

 

 

 

362,594

 

 

 

372,914

 

 

 

369,389

 

 

 

373,062

 

 

Certificates of deposit

 

 

1,120,850

 

 

 

1,122,873

 

 

 

851,411

 

 

 

835,127

 

 

 

854,048

 

 

Brokered deposits

 

 

346,504

 

 

 

350,507

 

 

 

335,625

 

 

 

346,356

 

 

 

373,400

 

 

     Total deposits

 

$

3,697,833

 

 

$

3,658,978

 

 

$

3,314,440

 

 

$

3,450,349

 

 

$

3,439,049

 

 

9

 

Net interest margin summarized for the three months ended:

 

September 30, 2019

 

 

June 30, 2019

 

 

 

Average

 

 

 

 

 

 

Average

 

 

Average

 

 

 

 

 

 

Average

 

(Dollars in thousands)

 

Balance

 

 

Interest

 

 

Rate

 

 

Balance

 

 

Interest

 

 

Rate

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning cash balances

 

$

104,569

 

 

$

603

 

 

 

2.29

%

 

$

166,426

 

 

$

1,022

 

 

 

2.46

%

Taxable securities

 

 

278,878

 

 

 

2,495

 

 

 

3.55

%

 

 

287,607

 

 

 

2,317

 

 

 

3.23

%

Tax-exempt securities

 

 

48,685

 

 

 

289

 

 

 

2.36

%

 

 

61,712

 

 

 

350

 

 

 

2.28

%

FHLB and other restricted stock

 

 

19,698

 

 

 

209

 

 

 

4.21

%

 

 

21,851

 

 

 

146

 

 

 

2.67

%

Loans

 

 

3,943,723

 

 

 

75,819

 

 

 

7.63

%

 

 

3,707,987

 

 

 

73,468

 

 

 

7.95

%

     Total interest earning assets

 

$

4,395,553

 

 

$

79,415

 

 

 

7.17

%

 

$

4,245,583

 

 

$

77,303

 

 

 

7.30

%

Non-interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

444,987

 

 

 

 

 

 

 

 

 

 

 

449,064

 

 

 

 

 

 

 

 

 

          Total assets

 

$

4,840,540

 

 

 

 

 

 

 

 

 

 

$

4,694,647

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand

 

$

585,706

 

 

$

355

 

 

 

0.24

%

 

$

592,593

 

 

$

391

 

 

 

0.26

%

Individual retirement accounts

 

 

110,049

 

 

 

454

 

 

 

1.64

%

 

 

111,962

 

 

 

437

 

 

 

1.57

%

Money market

 

 

416,526

 

 

 

1,406

 

 

 

1.34

%

 

 

419,066

 

 

 

1,473

 

 

 

1.41

%

Savings

 

 

359,169

 

 

 

117

 

 

 

0.13

%

 

 

366,953

 

 

 

120

 

 

 

0.13

%

Certificates of deposit

 

 

1,113,006

 

 

 

6,588

 

 

 

2.35

%

 

 

1,006,950

 

 

 

5,568

 

 

 

2.22

%

      Brokered deposits

 

 

352,430

 

 

 

2,116

 

 

 

2.38

%

 

 

337,086

 

 

 

2,021

 

 

 

2.40

%

     Total interest bearing deposits

 

 

2,936,886

 

 

 

11,036

 

 

 

1.49

%

 

 

2,834,610

 

 

 

10,010

 

 

 

1.42

%

Subordinated notes

 

 

48,994

 

 

 

840

 

 

 

6.80

%

 

 

48,967

 

 

 

839

 

 

 

6.87

%

Junior subordinated debentures

 

 

39,364

 

 

 

719

 

 

 

7.25

%

 

 

39,241

 

 

 

744

 

 

 

7.60

%

Other borrowings

 

 

364,950

 

 

 

2,055

 

 

 

2.23

%

 

 

368,455

 

 

 

2,291

 

 

 

2.49

%

     Total interest bearing liabilities

 

$

3,390,194

 

 

$

14,650

 

 

 

1.71

%

 

$

3,291,273

 

 

$

13,884

 

 

 

1.69

%

Non-interest bearing liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

735,527

 

 

 

 

 

 

 

 

 

 

 

686,923

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

68,778

 

 

 

 

 

 

 

 

 

 

 

64,104

 

 

 

 

 

 

 

 

 

Total equity

 

 

646,041

 

 

 

 

 

 

 

 

 

 

 

652,347

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

4,840,540

 

 

 

 

 

 

 

 

 

 

$

4,694,647

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

64,765

 

 

 

 

 

 

 

 

 

 

$

63,419

 

 

 

 

 

Interest spread

 

 

 

 

 

 

 

 

 

 

5.46

%

 

 

 

 

 

 

 

 

 

 

5.61

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

5.85

%

 

 

 

 

 

 

 

 

 

 

5.99

%

 

 


10

 

Metrics and non-GAAP financial reconciliation:

 

As of and for the Three Months Ended

 

 

As of and for the Nine Months Ended

 

(Dollars in thousands,

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

except per share amounts)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

Net income available to common stockholders

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

41,835

 

 

$

33,045

 

Gain on sale of subsidiary or division

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,071

)

Transaction related costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,871

 

 

 

—

 

 

 

6,965

 

Tax effect of adjustments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,392

)

 

 

—

 

 

 

(1,401

)

Adjusted net income available to common stockholders

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

13,454

 

 

$

41,835

 

 

$

37,538

 

Dilutive effect of convertible preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

195

 

 

 

—

 

 

 

578

 

Adjusted net income available to common stockholders - diluted

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

13,649

 

 

$

41,835

 

 

$

38,116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

 

25,734,471

 

 

 

26,486,423

 

 

 

26,793,685

 

 

 

26,979,949

 

 

 

26,991,830

 

 

 

26,331,740

 

 

 

24,974,308

 

Adjusted effects of assumed Preferred Stock conversion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted weighted average shares outstanding - diluted

 

 

25,734,471

 

 

 

26,486,423

 

 

 

26,793,685

 

 

 

26,979,949

 

 

 

26,991,830

 

 

 

26,331,740

 

 

 

24,974,308

 

Adjusted diluted earnings per common share

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.67

 

 

$

0.51

 

 

$

1.59

 

 

$

1.53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

$

646,041

 

 

$

652,347

 

 

$

644,960

 

 

$

632,126

 

 

$

618,682

 

 

$

647,787

 

 

$

534,958

 

Average preferred stock liquidation preference

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,624

 

 

 

9,658

 

 

 

—

 

 

 

9,658

 

Average total common stockholders' equity

 

 

646,041

 

 

 

652,347

 

 

 

644,960

 

 

 

629,502

 

 

 

609,025

 

 

 

647,787

 

 

 

525,300

 

Average goodwill and other intangibles

 

 

193,765

 

 

 

196,002

 

 

 

198,389

 

 

 

200,754

 

 

 

138,471

 

 

 

196,035

 

 

 

95,220

 

Average tangible common stockholders' equity

 

$

452,276

 

 

$

456,346

 

 

$

446,571

 

 

$

428,748

 

 

$

470,553

 

 

$

451,752

 

 

$

430,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

41,835

 

 

$

33,045

 

Average tangible common equity

 

 

452,276

 

 

 

456,346

 

 

 

446,571

 

 

 

428,748

 

 

 

470,553

 

 

 

451,752

 

 

 

430,080

 

Return on average tangible common equity

 

 

12.56

%

 

 

11.19

%

 

 

13.43

%

 

 

16.73

%

 

 

7.57

%

 

 

12.38

%

 

 

10.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted efficiency ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

64,765

 

 

$

63,419

 

 

$

61,311

 

 

$

64,881

 

 

$

61,782

 

 

$

189,495

 

 

$

162,169

 

Non-interest income

 

 

7,742

 

 

 

7,623

 

 

 

7,538

 

 

 

6,794

 

 

 

6,059

 

 

 

22,903

 

 

 

16,176

 

Operating revenue

 

 

72,507

 

 

 

71,042

 

 

 

68,849

 

 

 

71,675

 

 

 

67,841

 

 

 

212,398

 

 

 

178,345

 

Gain on sale of subsidiary or division

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,071

)

Adjusted operating revenue

 

$

72,507

 

 

$

71,042

 

 

$

68,849

 

 

$

71,675

 

 

$

67,841

 

 

$

212,398

 

 

$

177,274

 

Non-interest expenses

 

$

52,153

 

 

$

50,704

 

 

$

48,566

 

 

$

46,962

 

 

$

48,946

 

 

$

151,423

 

 

$

120,391

 

Transaction related costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5,871

)

 

 

—

 

 

 

(6,965

)

Adjusted non-interest expenses

 

$

52,153

 

 

$

50,704

 

 

$

48,566

 

 

$

46,962

 

 

$

43,075

 

 

$

151,423

 

 

$

113,426

 

Adjusted efficiency ratio

 

 

71.93

%

 

 

71.37

%

 

 

70.54

%

 

 

65.52

%

 

 

63.49

%

 

 

71.29

%

 

 

63.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net non-interest expense to average assets ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses

 

$

52,153

 

 

$

50,704

 

 

$

48,566

 

 

$

46,962

 

 

$

48,946

 

 

$

151,423

 

 

$

120,391

 

Transaction related costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5,871

)

 

 

—

 

 

 

(6,965

)

Adjusted non-interest expenses

 

$

52,153

 

 

$

50,704

 

 

$

48,566

 

 

$

46,962

 

 

$

43,075

 

 

$

151,423

 

 

$

113,426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income

 

$

7,742

 

 

$

7,623

 

 

$

7,538

 

 

$

6,794

 

 

$

6,059

 

 

$

22,903

 

 

$

16,176

 

Gain on sale of subsidiary or division

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,071

)

Adjusted non-interest income

 

$

7,742

 

 

$

7,623

 

 

$

7,538

 

 

$

6,794

 

 

$

6,059

 

 

$

22,903

 

 

$

15,105

 

Adjusted net non-interest expenses

 

$

44,411

 

 

$

43,081

 

 

$

41,028

 

 

$

40,168

 

 

$

37,016

 

 

$

128,520

 

 

$

98,321

 

Average total assets

 

$

4,840,540

 

 

$

4,694,647

 

 

$

4,501,760

 

 

$

4,488,918

 

 

$

4,060,560

 

 

$

4,680,234

 

 

$

3,702,513

 

Adjusted net non-interest expense to average assets ratio

 

 

3.64

%

 

 

3.68

%

 

 

3.70

%

 

 

3.55

%

 

 

3.62

%

 

 

3.67

%

 

 

3.55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

633,693

 

 

$

643,362

 

 

$

646,216

 

 

$

636,607

 

 

$

616,641

 

 

$

633,693

 

 

$

616,641

 

Preferred stock liquidation preference

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(9,658

)

 

 

—

 

 

 

(9,658

)

Total common stockholders' equity

 

 

633,693

 

 

 

643,362

 

 

 

646,216

 

 

 

636,607

 

 

 

606,983

 

 

 

633,693

 

 

 

606,983

 

Goodwill and other intangibles

 

 

(192,440

)

 

 

(194,668

)

 

 

(197,015

)

 

 

(199,417

)

 

 

(201,842

)

 

 

(192,440

)

 

 

(201,842

)

Tangible common stockholders' equity

 

$

441,253

 

 

$

448,694

 

 

$

449,201

 

 

$

437,190

 

 

$

405,141

 

 

$

441,253

 

 

$

405,141

 

Common shares outstanding

 

 

25,357,985

 

 

 

26,198,308

 

 

 

26,709,411

 

 

 

26,949,936

 

 

 

26,279,761

 

 

 

25,357,985

 

 

 

26,279,761

 

Tangible book value per share

 

$

17.40

 

 

$

17.13

 

 

$

16.82

 

 

$

16.22

 

 

$

15.42

 

 

$

17.40

 

 

$

15.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets at end of period

 

$

5,039,697

 

 

$

4,783,189

 

 

$

4,529,783

 

 

$

4,559,779

 

 

$

4,537,102

 

 

$

5,039,697

 

 

$

4,537,102

 

Goodwill and other intangibles

 

 

(192,440

)

 

 

(194,668

)

 

 

(197,015

)

 

 

(199,417

)

 

 

(201,842

)

 

 

(192,440

)

 

 

(201,842

)

Tangible assets at period end

 

$

4,847,257

 

 

$

4,588,521

 

 

$

4,332,768

 

 

$

4,360,362

 

 

$

4,335,260

 

 

$

4,847,257

 

 

$

4,335,260

 

Tangible common stockholders' equity ratio

 

 

9.10

%

 

 

9.78

%

 

 

10.37

%

 

 

10.03

%

 

 

9.35

%

 

 

9.10

%

 

 

9.35

%

11

 

1)

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

 

 

•

“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, including divestitures, 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.  

 

 

•

"Tangible common stockholders' equity" is defined as 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.

 

 

•

"Adjusted 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 and non-interest expense 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.

 

 

•

"Adjusted 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.  

 

2)

Performance ratios include discount accretion on purchased loans for the periods presented as follows:

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

Loan discount accretion

 

$

1,159

 

 

$

1,297

 

 

$

1,557

 

 

$

1,411

 

 

$

1,271

 

 

$

4,013

 

 

$

6,884

 

3)

Asset quality ratios exclude loans held for sale, except for non-performing assets to total assets.

 

4)

Current quarter ratios are preliminary.

 


Source: Triumph Bancorp, Inc.

 

###

 

Investor Relations:

Luke Wyse

Senior Vice President, Finance & Investor Relations

lwyse@tbkbank.com

214-365-6936

 

Media Contact:

Amanda Tavackoli

Senior Vice President, Marketing & Communication

atavackoli@tbkbank.com

214-365-6930

12