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

 

Exhibit 99.1

Triumph Bancorp Reports Fourth Quarter Net Income to Common Stockholders of $16.7 Million

DALLAS – January 21, 2020 (GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”) today announced earnings and operating results for the fourth 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 Fourth Quarter Highlights and Recent Developments

 

•

For the fourth quarter of 2019, net income available to common stockholders was $16.7 million. Diluted earnings per share were $0.66.  

 

•

Net interest margin (“NIM”) was 5.72% for the quarter ended December 31, 2019.

 

•

Total loans held for investment decreased $14.9 million, or 0.4%, to $4.195 billion at December 31, 2019. Average loans for the quarter increased $190.7 million, or 4.8%, to $4.134 billion.

 

•

The total dollar value of invoices purchased by Triumph Business Capital for the quarter ended December 31, 2019 was $1.490 billion with an average invoice size of $1,662. The transportation average invoice size for the quarter was $1,507.

 

•

For the quarter ended December 31, 2019, TriumphPay processed 442,428 invoices paying 41,222 distinct carriers a total of $474.9 million.

 

•

During the quarter ended December 31, 2019, we completed a $39.5 million subordinated debt offering.

 

•

During the quarter ended December 31, 2019, we repurchased 392,557 shares into treasury stock under our stock repurchase program at an average price of $36.69, for a total of $14.4 million. During the year ended December 31, 2019, we have repurchased 2,080,791 shares into treasury stock under our stock repurchase programs at an average price of $30.90, for a total of $64.4 million.

Balance Sheet

Total loans held for investment decreased $14.9 million, or 0.4%, during the fourth quarter to $4.195 billion at December 31, 2019. The community banking portfolio decreased $113.0 million, or 5.1%, to $2.094 billion, the commercial finance portfolio decreased $25.6 million, or 2.0%, to $1.250 billion, and the national lending portfolio increased $123.7 million, or 17.0%, to $850.4 million during the quarter.

Total deposits were $3.790 billion at December 31, 2019, an increase of $92.1 million, or 2.5%, in the fourth quarter of 2019.  Non-interest-bearing deposits accounted for 21% of total deposits and non-time deposits accounted for 59% of total deposits at December 31, 2019.  

Net Interest Income

We earned net interest income for the quarter ended December 31, 2019 of $66.4 million compared to $64.8 million for the quarter ended September 30, 2019.

Yields on loans for the quarter ended December 31, 2019 were down 15 bps from the prior quarter to 7.48%. The average cost of our total deposits was 1.15% for the quarter ended December 31, 2019 compared to 1.19% for the quarter ended September 30, 2019.  

Asset Quality

Non-performing assets were 0.87% of total assets at December 31, 2019 compared to 0.91% of total assets at September 30, 2019.  The ratio of past due to total loans decreased to 2.19% at December 31, 2019 from 2.47% at September 30, 2019. We recorded total net charge-offs of $3.2 million, or 0.08% of average loans, for the quarter ended December 31, 2019 compared to net charge-offs of $0.4 million, or 0.01% of average loans, for the quarter ended September 30, 2019.  

1

 

We recorded a provision for loan losses of $0.4 million for the quarter ended December 31, 2019 compared to a provision of $2.9 million for the quarter ended September 30, 2019. From September 30, 2019 to December 31, 2019, our ALLL decreased from $31.9 million or 0.76% of total loans to $29.1 million or 0.69% of total loans.

Non-Interest Income and Expense

We earned non-interest income for the quarter ended December 31, 2019 of $8.7 million compared to $7.7 million for the quarter ended September 30, 2019.

For the quarter ended December 31, 2019, non-interest expense totaled $52.7 million, compared to $52.2 million for the quarter ended September 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 5:00 p.m. Central Time on Tuesday, January 21, 2020. 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/tbk200121.html. An archive of this conference call will subsequently be available at this same location on the Company’s website.

2

 

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 Years Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Financial Highlights:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,060,297

 

 

$

5,039,697

 

 

$

4,783,189

 

 

$

4,529,783

 

 

$

4,559,779

 

 

$

5,060,297

 

 

$

4,559,779

 

Loans held for investment

 

$

4,194,512

 

 

$

4,209,417

 

 

$

3,835,903

 

 

$

3,612,869

 

 

$

3,608,644

 

 

$

4,194,512

 

 

$

3,608,644

 

Deposits

 

$

3,789,906

 

 

$

3,697,833

 

 

$

3,658,978

 

 

$

3,314,440

 

 

$

3,450,349

 

 

$

3,789,906

 

 

$

3,450,349

 

Net income available to common stockholders

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

58,544

 

 

$

51,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios - Annualized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.31

%

 

 

1.17

%

 

 

1.09

%

 

 

1.33

%

 

 

1.60

%

 

 

1.23

%

 

 

1.33

%

Return on average total equity

 

 

10.24

%

 

 

8.79

%

 

 

7.83

%

 

 

9.30

%

 

 

11.35

%

 

 

9.04

%

 

 

9.24

%

Return on average common equity

 

 

10.24

%

 

 

8.79

%

 

 

7.83

%

 

 

9.30

%

 

 

11.40

%

 

 

9.04

%

 

 

9.27

%

Return on average tangible common equity (1)

 

 

14.54

%

 

 

12.56

%

 

 

11.19

%

 

 

13.43

%

 

 

16.73

%

 

 

12.93

%

 

 

11.90

%

Yield on loans(2)

 

 

7.48

%

 

 

7.63

%

 

 

7.95

%

 

 

7.99

%

 

 

8.14

%

 

 

7.75

%

 

 

8.07

%

Cost of interest bearing deposits

 

 

1.45

%

 

 

1.49

%

 

 

1.42

%

 

 

1.24

%

 

 

1.15

%

 

 

1.40

%

 

 

1.02

%

Cost of total deposits

 

 

1.15

%

 

 

1.19

%

 

 

1.14

%

 

 

0.99

%

 

 

0.91

%

 

 

1.12

%

 

 

0.80

%

Cost of total funds

 

 

1.35

%

 

 

1.41

%

 

 

1.40

%

 

 

1.28

%

 

 

1.14

%

 

 

1.36

%

 

 

1.09

%

Net interest margin(2)

 

 

5.72

%

 

 

5.85

%

 

 

5.99

%

 

 

6.15

%

 

 

6.34

%

 

 

5.92

%

 

 

6.35

%

Net non-interest expense to average assets

 

 

3.46

%

 

 

3.64

%

 

 

3.68

%

 

 

3.70

%

 

 

3.55

%

 

 

3.61

%

 

 

3.70

%

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

 

 

3.46

%

 

 

3.64

%

 

 

3.68

%

 

 

3.70

%

 

 

3.55

%

 

 

3.61

%

 

 

3.55

%

Efficiency ratio

 

 

70.15

%

 

 

71.93

%

 

 

71.37

%

 

 

70.54

%

 

 

65.52

%

 

 

70.99

%

 

 

66.94

%

Adjusted efficiency ratio (1)

 

 

70.15

%

 

 

71.93

%

 

 

71.37

%

 

 

70.54

%

 

 

65.52

%

 

 

70.99

%

 

 

64.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due to total loans

 

 

2.19

%

 

 

2.47

%

 

 

1.90

%

 

 

2.33

%

 

 

2.41

%

 

 

2.19

%

 

 

2.41

%

Non-performing loans to total loans

 

 

0.97

%

 

 

1.00

%

 

 

0.96

%

 

 

0.95

%

 

 

1.00

%

 

 

0.97

%

 

 

1.00

%

Non-performing assets to total assets

 

 

0.87

%

 

 

0.91

%

 

 

0.86

%

 

 

0.84

%

 

 

0.84

%

 

 

0.87

%

 

 

0.84

%

ALLL to non-performing loans

 

 

71.63

%

 

 

75.58

%

 

 

79.91

%

 

 

80.70

%

 

 

76.47

%

 

 

71.63

%

 

 

76.47

%

ALLL to total loans

 

 

0.69

%

 

 

0.76

%

 

 

0.77

%

 

 

0.76

%

 

 

0.76

%

 

 

0.69

%

 

 

0.76

%

Net charge-offs to average loans

 

 

0.08

%

 

 

0.01

%

 

 

0.05

%

 

 

0.03

%

 

 

0.05

%

 

 

0.17

%

 

 

0.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital to average assets(4)

 

 

10.03

%

 

 

10.37

%

 

 

10.84

%

 

 

11.32

%

 

 

11.08

%

 

 

10.03

%

 

 

11.08

%

Tier 1 capital to risk-weighted assets(4)

 

 

10.29

%

 

 

10.08

%

 

 

11.08

%

 

 

11.76

%

 

 

11.49

%

 

 

10.29

%

 

 

11.49

%

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

 

 

9.45

%

 

 

9.26

%

 

 

10.19

%

 

 

10.81

%

 

 

10.55

%

 

 

9.45

%

 

 

10.55

%

Total capital to risk-weighted assets(4)

 

 

12.75

%

 

 

11.79

%

 

 

12.88

%

 

 

13.62

%

 

 

13.35

%

 

 

12.75

%

 

 

13.35

%

Total equity to total assets

 

 

12.58

%

 

 

12.57

%

 

 

13.45

%

 

 

14.27

%

 

 

13.96

%

 

 

12.58

%

 

 

13.96

%

Tangible common stockholders' equity to tangible assets(1)

 

 

9.16

%

 

 

9.10

%

 

 

9.78

%

 

 

10.37

%

 

 

10.03

%

 

 

9.16

%

 

 

10.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

25.50

 

 

$

24.99

 

 

$

24.56

 

 

$

24.19

 

 

$

23.62

 

 

$

25.50

 

 

$

23.62

 

Tangible book value per share (1)

 

$

17.88

 

 

$

17.40

 

 

$

17.13

 

 

$

16.82

 

 

$

16.22

 

 

$

17.88

 

 

$

16.22

 

Basic earnings per common share

 

$

0.67

 

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.68

 

 

$

2.26

 

 

$

2.06

 

Diluted earnings per common share

 

$

0.66

 

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.67

 

 

$

2.25

 

 

$

2.03

 

Adjusted diluted earnings per common share(1)

 

$

0.66

 

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.67

 

 

$

2.25

 

 

$

2.21

 

Shares outstanding end of period

 

 

24,964,961

 

 

 

25,357,985

 

 

 

26,198,308

 

 

 

26,709,411

 

 

 

26,949,936

 

 

 

24,964,961

 

 

 

26,949,936

 



4

 

Unaudited consolidated balance sheet as of:

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

 

$

197,880

 

 

$

115,043

 

 

$

209,305

 

 

$

171,950

 

 

$

234,939

 

Securities - available for sale

 

 

248,820

 

 

 

302,917

 

 

 

329,991

 

 

 

339,465

 

 

 

336,423

 

Securities - held to maturity

 

 

8,417

 

 

 

8,517

 

 

 

8,573

 

 

 

8,499

 

 

 

8,487

 

Equity securities

 

 

5,437

 

 

 

5,543

 

 

 

5,479

 

 

 

5,183

 

 

 

5,044

 

Loans held for sale

 

 

2,735

 

 

 

7,499

 

 

 

2,877

 

 

 

610

 

 

 

2,106

 

Loans held for investment

 

 

4,194,512

 

 

 

4,209,417

 

 

 

3,835,903

 

 

 

3,612,869

 

 

 

3,608,644

 

Allowance for loan and lease losses

 

 

(29,092

)

 

 

(31,895

)

 

 

(29,416

)

 

 

(27,605

)

 

 

(27,571

)

Loans, net

 

 

4,165,420

 

 

 

4,177,522

 

 

 

3,806,487

 

 

 

3,585,264

 

 

 

3,581,073

 

FHLB and other restricted stock

 

 

19,860

 

 

 

23,960

 

 

 

18,037

 

 

 

21,191

 

 

 

15,943

 

Premises and equipment, net

 

 

96,595

 

 

 

87,112

 

 

 

84,998

 

 

 

84,931

 

 

 

83,392

 

Other real estate owned ("OREO"), net

 

 

3,009

 

 

 

2,849

 

 

 

3,351

 

 

 

3,073

 

 

 

2,060

 

Goodwill and intangible assets, net

 

 

190,286

 

 

 

192,440

 

 

 

194,668

 

 

 

197,015

 

 

 

199,417

 

Bank-owned life insurance

 

 

40,954

 

 

 

40,724

 

 

 

40,847

 

 

 

40,667

 

 

 

40,509

 

Deferred tax asset, net

 

 

3,812

 

 

 

5,971

 

 

 

7,278

 

 

 

7,608

 

 

 

8,438

 

Other assets

 

 

77,072

 

 

 

69,600

 

 

 

71,298

 

 

 

64,327

 

 

 

41,948

 

Total assets

 

$

5,060,297

 

 

$

5,039,697

 

 

$

4,783,189

 

 

$

4,529,783

 

 

$

4,559,779

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

809,696

 

 

$

754,233

 

 

$

684,223

 

 

$

667,597

 

 

$

724,527

 

Interest bearing deposits

 

 

2,980,210

 

 

 

2,943,600

 

 

 

2,974,755

 

 

 

2,646,843

 

 

 

2,725,822

 

Total deposits

 

 

3,789,906

 

 

 

3,697,833

 

 

 

3,658,978

 

 

 

3,314,440

 

 

 

3,450,349

 

Customer repurchase agreements

 

 

2,033

 

 

 

14,124

 

 

 

12,788

 

 

 

3,727

 

 

 

4,485

 

Federal Home Loan Bank advances

 

 

430,000

 

 

 

530,000

 

 

 

305,000

 

 

 

405,000

 

 

 

330,000

 

Subordinated notes

 

 

87,327

 

 

 

49,010

 

 

 

48,983

 

 

 

48,956

 

 

 

48,929

 

Junior subordinated debentures

 

 

39,566

 

 

 

39,443

 

 

 

39,320

 

 

 

39,200

 

 

 

39,083

 

Other liabilities

 

 

74,875

 

 

 

75,594

 

 

 

74,758

 

 

 

72,244

 

 

 

50,326

 

Total liabilities

 

 

4,423,707

 

 

 

4,406,004

 

 

 

4,139,827

 

 

 

3,883,567

 

 

 

3,923,172

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

272

 

 

 

272

 

 

 

271

 

 

 

271

 

 

 

271

 

Additional paid-in-capital

 

 

473,251

 

 

 

472,368

 

 

 

471,145

 

 

 

470,292

 

 

 

469,341

 

Treasury stock, at cost

 

 

(67,069

)

 

 

(52,632

)

 

 

(27,468

)

 

 

(9,881

)

 

 

(2,288

)

Retained earnings

 

 

229,030

 

 

 

212,321

 

 

 

198,004

 

 

 

185,274

 

 

 

170,486

 

Accumulated other comprehensive income

 

 

1,106

 

 

 

1,364

 

 

 

1,410

 

 

 

260

 

 

 

(1,203

)

Total stockholders' equity

 

 

636,590

 

 

 

633,693

 

 

 

643,362

 

 

 

646,216

 

 

 

636,607

 

Total liabilities and equity

 

$

5,060,297

 

 

$

5,039,697

 

 

$

4,783,189

 

 

$

4,529,783

 

 

$

4,559,779

 


5

 

Unaudited consolidated statement of income:

 

For the Three Months Ended

 

 

For the Years Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

52,395

 

 

$

50,249

 

 

$

47,910

 

 

$

45,094

 

 

$

44,435

 

 

$

195,648

 

 

$

160,723

 

Factored receivables, including fees

 

 

25,573

 

 

 

25,570

 

 

 

25,558

 

 

 

24,556

 

 

 

28,070

 

 

 

101,257

 

 

 

92,103

 

Securities

 

 

2,379

 

 

 

2,784

 

 

 

2,667

 

 

 

2,644

 

 

 

2,314

 

 

 

10,474

 

 

 

6,354

 

FHLB and other restricted stock

 

 

165

 

 

 

209

 

 

 

146

 

 

 

192

 

 

 

154

 

 

 

712

 

 

 

507

 

Cash deposits

 

 

659

 

 

 

603

 

 

 

1,022

 

 

 

778

 

 

 

877

 

 

 

3,062

 

 

 

3,289

 

Total interest income

 

 

81,171

 

 

 

79,415

 

 

 

77,303

 

 

 

73,264

 

 

 

75,850

 

 

 

311,153

 

 

 

262,976

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

10,961

 

 

 

11,036

 

 

 

10,010

 

 

 

8,218

 

 

 

7,931

 

 

 

40,225

 

 

 

23,058

 

Subordinated notes

 

 

1,035

 

 

 

840

 

 

 

839

 

 

 

839

 

 

 

839

 

 

 

3,553

 

 

 

3,351

 

Junior subordinated debentures

 

 

687

 

 

 

719

 

 

 

744

 

 

 

760

 

 

 

717

 

 

 

2,910

 

 

 

2,741

 

Other borrowings

 

 

2,080

 

 

 

2,055

 

 

 

2,291

 

 

 

2,136

 

 

 

1,482

 

 

 

8,562

 

 

 

6,776

 

Total interest expense

 

 

14,763

 

 

 

14,650

 

 

 

13,884

 

 

 

11,953

 

 

 

10,969

 

 

 

55,250

 

 

 

35,926

 

Net interest income

 

 

66,408

 

 

 

64,765

 

 

 

63,419

 

 

 

61,311

 

 

 

64,881

 

 

 

255,903

 

 

 

227,050

 

Provision for loan losses

 

 

382

 

 

 

2,865

 

 

 

3,681

 

 

 

1,014

 

 

 

1,910

 

 

 

7,942

 

 

 

16,167

 

Net interest income after provision for loan losses

 

 

66,026

 

 

 

61,900

 

 

 

59,738

 

 

 

60,297

 

 

 

62,971

 

 

 

247,961

 

 

 

210,883

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

1,889

 

 

 

1,937

 

 

 

1,700

 

 

 

1,606

 

 

 

1,702

 

 

 

7,132

 

 

 

5,469

 

Card income

 

 

1,943

 

 

 

2,015

 

 

 

2,071

 

 

 

1,844

 

 

 

1,999

 

 

 

7,873

 

 

 

6,514

 

Net OREO gains (losses) and valuation adjustments

 

 

50

 

 

 

(56

)

 

 

148

 

 

 

209

 

 

 

37

 

 

 

351

 

 

 

(514

)

Net gains (losses) on sale of securities

 

 

39

 

 

 

19

 

 

 

14

 

 

 

(11

)

 

 

—

 

 

 

61

 

 

 

(272

)

Fee income

 

 

1,686

 

 

 

1,624

 

 

 

1,519

 

 

 

1,612

 

 

 

1,636

 

 

 

6,441

 

 

 

5,150

 

Insurance commissions

 

 

1,092

 

 

 

1,247

 

 

 

961

 

 

 

919

 

 

 

846

 

 

 

4,219

 

 

 

3,492

 

Gain on sale of subsidiary

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,071

 

Other

 

 

1,967

 

 

 

956

 

 

 

1,210

 

 

 

1,359

 

 

 

574

 

 

 

5,492

 

 

 

2,060

 

Total non-interest income

 

 

8,666

 

 

 

7,742

 

 

 

7,623

 

 

 

7,538

 

 

 

6,794

 

 

 

31,569

 

 

 

22,970

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

29,586

 

 

 

28,717

 

 

 

28,120

 

 

 

26,439

 

 

 

25,586

 

 

 

112,862

 

 

 

90,212

 

Occupancy, furniture and equipment

 

 

4,667

 

 

 

4,505

 

 

 

4,502

 

 

 

4,522

 

 

 

4,402

 

 

 

18,196

 

 

 

14,023

 

FDIC insurance and other regulatory assessments

 

 

(302

)

 

 

(2

)

 

 

303

 

 

 

299

 

 

 

184

 

 

 

298

 

 

 

1,129

 

Professional fees

 

 

1,904

 

 

 

1,969

 

 

 

1,550

 

 

 

1,865

 

 

 

1,837

 

 

 

7,288

 

 

 

8,939

 

Amortization of intangible assets

 

 

2,154

 

 

 

2,228

 

 

 

2,347

 

 

 

2,402

 

 

 

2,438

 

 

 

9,131

 

 

 

6,980

 

Advertising and promotion

 

 

1,347

 

 

 

1,379

 

 

 

1,796

 

 

 

1,604

 

 

 

1,036

 

 

 

6,126

 

 

 

4,974

 

Communications and technology

 

 

5,732

 

 

 

5,382

 

 

 

4,988

 

 

 

4,874

 

 

 

4,388

 

 

 

20,976

 

 

 

18,270

 

Other

 

 

7,573

 

 

 

7,975

 

 

 

7,098

 

 

 

6,561

 

 

 

7,091

 

 

 

29,207

 

 

 

22,826

 

Total non-interest expense

 

 

52,661

 

 

 

52,153

 

 

 

50,704

 

 

 

48,566

 

 

 

46,962

 

 

 

204,084

 

 

 

167,353

 

Net income before income tax

 

 

22,031

 

 

 

17,489

 

 

 

16,657

 

 

 

19,269

 

 

 

22,803

 

 

 

75,446

 

 

 

66,500

 

Income tax expense

 

 

5,322

 

 

 

3,172

 

 

 

3,927

 

 

 

4,481

 

 

 

4,718

 

 

 

16,902

 

 

 

14,792

 

Net income

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

58,544

 

 

$

51,708

 

Dividends on preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(578

)

Net income available to common stockholders

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

58,544

 

 

$

51,130

 

 


6

 

Earnings per share:

 

For the Three Months Ended

 

 

For the Years Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income to common stockholders

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

58,544

 

 

$

51,130

 

Weighted average common shares outstanding

 

 

25,089,447

 

 

 

25,621,054

 

 

 

26,396,351

 

 

 

26,679,724

 

 

 

26,666,554

 

 

 

25,941,395

 

 

 

24,791,448

 

Basic earnings per common share

 

$

0.67

 

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.68

 

 

$

2.26

 

 

$

2.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income to common stockholders

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

58,544

 

 

$

51,130

 

Dilutive effect of preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

578

 

Net income to common stockholders - diluted

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

58,544

 

 

$

51,708

 

Weighted average common shares outstanding

 

 

25,089,447

 

 

 

25,621,054

 

 

 

26,396,351

 

 

 

26,679,724

 

 

 

26,666,554

 

 

 

25,941,395

 

 

 

24,791,448

 

Dilutive effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assumed conversion of Preferred A

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

89,240

 

 

 

—

 

 

 

258,674

 

Assumed conversion of Preferred B

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

100,176

 

 

 

—

 

 

 

290,375

 

Assumed exercises of stock options

 

 

69,865

 

 

 

60,068

 

 

 

59,962

 

 

 

64,166

 

 

 

76,219

 

 

 

63,808

 

 

 

84,126

 

Restricted stock awards

 

 

70,483

 

 

 

45,631

 

 

 

30,110

 

 

 

49,795

 

 

 

46,457

 

 

 

47,242

 

 

 

52,851

 

Restricted stock units

 

 

13,264

 

 

 

3,045

 

 

 

—

 

 

 

—

 

 

 

1,303

 

 

 

3,441

 

 

 

3,039

 

Performance stock units - market based

 

 

11,803

 

 

 

4,673

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,119

 

 

 

—

 

Performance stock units - performance based

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Weighted average shares outstanding - diluted

 

 

25,254,862

 

 

 

25,734,471

 

 

 

26,486,423

 

 

 

26,793,685

 

 

 

26,979,949

 

 

 

26,060,005

 

 

 

25,480,513

 

Diluted earnings per common share

 

$

0.66

 

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.67

 

 

$

2.25

 

 

$

2.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Years Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Assumed conversion of Preferred A

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Assumed conversion of Preferred B

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Stock options

 

 

66,019

 

 

 

67,023

 

 

 

70,037

 

 

 

50,752

 

 

 

51,952

 

 

 

66,019

 

 

 

51,952

 

Restricted stock awards

 

 

—

 

 

 

3,209

 

 

 

—

 

 

 

13,290

 

 

 

14,513

 

 

 

—

 

 

 

—

 

Restricted stock units

 

 

—

 

 

 

—

 

 

 

58,400

 

 

 

58,400

 

 

 

—

 

 

 

—

 

 

 

—

 

Performance stock units - market based

 

 

55,228

 

 

 

55,228

 

 

 

70,879

 

 

 

58,400

 

 

 

59,658

 

 

 

55,228

 

 

 

59,658

 

Performance stock units - performance based

 

 

254,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

254,000

 

 

 

—

 

 

 


7

 

Loans held for investment summarized as of:

  

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

Commercial real estate

 

$

1,046,961

 

 

$

1,115,559

 

 

$

1,098,279

 

 

$

1,093,882

 

 

$

992,080

 

Construction, land development, land

 

 

160,569

 

 

 

164,186

 

 

 

157,861

 

 

 

145,002

 

 

 

179,591

 

1-4 family residential properties

 

 

179,425

 

 

 

186,405

 

 

 

186,070

 

 

 

194,067

 

 

 

190,185

 

Farmland

 

 

154,975

 

 

 

161,447

 

 

 

144,594

 

 

 

156,299

 

 

 

170,540

 

Commercial

 

 

1,342,683

 

 

 

1,369,505

 

 

 

1,257,330

 

 

 

1,117,640

 

 

 

1,114,971

 

Factored receivables

 

 

619,986

 

 

 

599,651

 

 

 

583,131

 

 

 

570,663

 

 

 

617,791

 

Consumer

 

 

21,925

 

 

 

24,967

 

 

 

26,048

 

 

 

27,941

 

 

 

29,822

 

Mortgage warehouse

 

 

667,988

 

 

 

587,697

 

 

 

382,590

 

 

 

307,375

 

 

 

313,664

 

     Total loans

 

$

4,194,512

 

 

$

4,209,417

 

 

$

3,835,903

 

 

$

3,612,869

 

 

$

3,608,644

 

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:

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

Commercial - Equipment

 

$

461,555

 

 

$

429,412

 

 

$

395,094

 

 

$

364,447

 

 

$

352,037

 

Commercial - Asset-based lending

 

 

168,955

 

 

 

247,026

 

 

 

208,896

 

 

 

174,447

 

 

 

214,110

 

Factored receivables

 

 

619,986

 

 

 

599,651

 

 

 

583,131

 

 

 

570,663

 

 

 

617,791

 

     Commercial finance

 

$

1,250,496

 

 

$

1,276,089

 

 

$

1,187,121

 

 

$

1,109,557

 

 

$

1,183,938

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial finance % of total loans

 

 

30

%

 

 

30

%

 

 

31

%

 

 

31

%

 

 

33

%

National lending loans are further summarized below:

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

Mortgage warehouse

 

$

667,988

 

 

$

587,697

 

 

$

382,590

 

 

$

307,375

 

 

$

313,664

 

Commercial - Liquid credit

 

 

81,353

 

 

 

37,386

 

 

 

21,758

 

 

 

960

 

 

 

963

 

Commercial - Premium finance

 

 

101,015

 

 

 

101,562

 

 

 

72,898

 

 

 

77,389

 

 

 

72,302

 

National lending

 

$

850,356

 

 

$

726,645

 

 

$

477,246

 

 

$

385,724

 

 

$

386,929

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

National lending % of total loans

 

 

20

%

 

 

17

%

 

 

12

%

 

 

11

%

 

 

11

%

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

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

Average community banking

 

$

2,170,149

 

 

$

2,193,533

 

 

$

2,166,122

 

 

$

2,103,816

 

 

$

2,012,255

 

Average commercial finance

 

 

1,260,000

 

 

 

1,208,823

 

 

 

1,168,110

 

 

 

1,123,978

 

 

 

1,190,586

 

Average national lending

 

 

704,244

 

 

 

541,367

 

 

 

373,755

 

 

 

307,249

 

 

 

329,630

 

Average total loans

 

$

4,134,393

 

 

$

3,943,723

 

 

$

3,707,987

 

 

$

3,535,043

 

 

$

3,532,471

 

Community banking yield

 

 

5.89

%

 

 

5.79

%

 

 

5.88

%

 

 

5.91

%

 

 

5.82

%

Commercial finance yield

 

 

11.64

%

 

 

12.31

%

 

 

12.52

%

 

 

12.50

%

 

 

12.82

%

National lending yield

 

 

4.96

%

 

 

4.63

%

 

 

5.62

%

 

 

5.73

%

 

 

5.44

%

Total loan yield

 

 

7.48

%

 

 

7.63

%

 

 

7.95

%

 

 

7.99

%

 

 

8.14

%

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:

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

Factored receivable period end balance

 

$

573,372,000

 

 

$

562,009,000

 

 

$

544,601,000

 

 

$

534,420,000

 

 

$

588,750,000

 

Yield on average receivable balance

 

 

17.20

%

 

 

18.23

%

 

 

18.73

%

 

 

17.96

%

 

 

18.24

%

Rolling twelve quarter annual charge-off rate

 

 

0.39

%

 

 

0.36

%

 

 

0.40

%

 

 

0.39

%

 

 

0.37

%

Factored receivables - transportation concentration

 

 

81

%

 

 

83

%

 

 

83

%

 

 

81

%

 

 

83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, including fees

 

$

24,813,000

 

 

$

24,869,000

 

 

$

24,762,000

 

 

$

23,803,000

 

 

$

27,578,000

 

Non-interest income

 

 

1,154,000

 

 

 

1,291,000

 

 

 

1,205,000

 

 

 

1,077,000

 

 

 

1,032,000

 

Factored receivable total revenue

 

 

25,967,000

 

 

 

26,160,000

 

 

 

25,967,000

 

 

 

24,880,000

 

 

 

28,610,000

 

Average net funds employed

 

 

524,546,000

 

 

 

494,198,000

 

 

 

483,203,000

 

 

 

490,241,000

 

 

 

547,996,000

 

Yield on average net funds employed

 

 

19.64

%

 

 

21.00

%

 

 

21.55

%

 

 

20.58

%

 

 

20.71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable purchased

 

$

1,489,538,000

 

 

$

1,450,905,000

 

 

$

1,408,982,000

 

 

$

1,325,140,000

 

 

$

1,541,332,000

 

Number of invoices purchased

 

 

896,487

 

 

 

890,986

 

 

 

874,248

 

 

 

789,838

 

 

 

882,042

 

Average invoice size

 

$

1,662

 

 

$

1,628

 

 

$

1,612

 

 

$

1,678

 

 

$

1,747

 

Average invoice size - transportation

 

$

1,507

 

 

$

1,497

 

 

$

1,492

 

 

$

1,541

 

 

$

1,625

 

Average invoice size - non-transportation

 

$

3,891

 

 

$

3,467

 

 

$

3,047

 

 

$

3,276

 

 

$

3,209

 

Deposits summarized as of:

  

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

Non-interest bearing demand

 

$

809,696

 

 

$

754,233

 

 

$

684,223

 

 

$

667,597

 

 

$

724,527

 

 

Interest bearing demand

 

 

580,323

 

 

 

587,123

 

 

 

587,164

 

 

 

602,088

 

 

 

615,704

 

 

Individual retirement accounts

 

 

104,472

 

 

 

108,593

 

 

 

111,328

 

 

 

112,696

 

 

 

115,583

 

 

Money market

 

 

497,105

 

 

 

424,162

 

 

 

440,289

 

 

 

372,109

 

 

 

443,663

 

 

Savings

 

 

363,270

 

 

 

356,368

 

 

 

362,594

 

 

 

372,914

 

 

 

369,389

 

 

Certificates of deposit

 

 

1,084,425

 

 

 

1,120,850

 

 

 

1,122,873

 

 

 

851,411

 

 

 

835,127

 

 

Brokered deposits

 

 

350,615

 

 

 

346,504

 

 

 

350,507

 

 

 

335,625

 

 

 

346,356

 

 

     Total deposits

 

$

3,789,906

 

 

$

3,697,833

 

 

$

3,658,978

 

 

$

3,314,440

 

 

$

3,450,349

 

 

9

 

Net interest margin summarized for the three months ended:

 

December 31, 2019

 

 

September 30, 2019

 

 

 

Average

 

 

 

 

 

 

Average

 

 

Average

 

 

 

 

 

 

Average

 

(Dollars in thousands)

 

Balance

 

 

Interest

 

 

Rate

 

 

Balance

 

 

Interest

 

 

Rate

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning cash balances

 

$

153,160

 

 

$

659

 

 

 

1.71

%

 

$

104,569

 

 

$

603

 

 

 

2.29

%

Taxable securities

 

 

254,255

 

 

 

2,157

 

 

 

3.37

%

 

 

278,878

 

 

 

2,495

 

 

 

3.55

%

Tax-exempt securities

 

 

37,680

 

 

 

222

 

 

 

2.34

%

 

 

48,685

 

 

 

289

 

 

 

2.36

%

FHLB and other restricted stock

 

 

25,599

 

 

 

165

 

 

 

2.56

%

 

 

19,698

 

 

 

209

 

 

 

4.21

%

Loans

 

 

4,134,393

 

 

 

77,968

 

 

 

7.48

%

 

 

3,943,723

 

 

 

75,819

 

 

 

7.63

%

     Total interest earning assets

 

$

4,605,087

 

 

$

81,171

 

 

 

6.99

%

 

$

4,395,553

 

 

$

79,415

 

 

 

7.17

%

Non-interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

445,773

 

 

 

 

 

 

 

 

 

 

 

444,987

 

 

 

 

 

 

 

 

 

          Total assets

 

$

5,050,860

 

 

 

 

 

 

 

 

 

 

$

4,840,540

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand

 

$

588,590

 

 

$

373

 

 

 

0.25

%

 

$

585,706

 

 

$

355

 

 

 

0.24

%

Individual retirement accounts

 

 

106,645

 

 

 

435

 

 

 

1.62

%

 

 

110,049

 

 

 

454

 

 

 

1.64

%

Money market

 

 

490,438

 

 

 

1,542

 

 

 

1.25

%

 

 

416,526

 

 

 

1,406

 

 

 

1.34

%

Savings

 

 

359,024

 

 

 

119

 

 

 

0.13

%

 

 

359,169

 

 

 

117

 

 

 

0.13

%

Certificates of deposit

 

 

1,108,647

 

 

 

6,491

 

 

 

2.32

%

 

 

1,113,006

 

 

 

6,588

 

 

 

2.35

%

      Brokered deposits

 

 

350,737

 

 

 

2,001

 

 

 

2.26

%

 

 

352,430

 

 

 

2,116

 

 

 

2.38

%

     Total interest bearing deposits

 

 

3,004,081

 

 

 

10,961

 

 

 

1.45

%

 

 

2,936,886

 

 

 

11,036

 

 

 

1.49

%

Subordinated notes

 

 

63,706

 

 

 

1,035

 

 

 

6.45

%

 

 

48,994

 

 

 

840

 

 

 

6.80

%

Junior subordinated debentures

 

 

39,491

 

 

 

687

 

 

 

6.90

%

 

 

39,364

 

 

 

719

 

 

 

7.25

%

Other borrowings

 

 

438,447

 

 

 

2,080

 

 

 

1.88

%

 

 

364,950

 

 

 

2,055

 

 

 

2.23

%

     Total interest bearing liabilities

 

$

3,545,725

 

 

$

14,763

 

 

 

1.65

%

 

$

3,390,194

 

 

$

14,650

 

 

 

1.71

%

Non-interest bearing liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

791,379

 

 

 

 

 

 

 

 

 

 

 

735,527

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

66,210

 

 

 

 

 

 

 

 

 

 

 

68,778

 

 

 

 

 

 

 

 

 

Total equity

 

 

647,546

 

 

 

 

 

 

 

 

 

 

 

646,041

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

5,050,860

 

 

 

 

 

 

 

 

 

 

$

4,840,540

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

66,408

 

 

 

 

 

 

 

 

 

 

$

64,765

 

 

 

 

 

Interest spread

 

 

 

 

 

 

 

 

 

 

5.34

%

 

 

 

 

 

 

 

 

 

 

5.46

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

5.72

%

 

 

 

 

 

 

 

 

 

 

5.85

%

Loan balance totals include respective nonaccrual assets.

Net interest spread is the yield on average interest earning assets less the rate on interest bearing liabilities.

Net interest margin is the ratio of net interest income to average interest earning assets.

Average rates have been annualized.

 


10

 

Metrics and non-GAAP financial reconciliation:

 

As of and for the Three Months Ended

 

 

As of and for the Years Ended

 

(Dollars in thousands,

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

except per share amounts)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income available to common stockholders

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

58,544

 

 

$

51,130

 

Gain on sale of subsidiary or division

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,071

)

Transaction related costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,965

 

Tax effect of adjustments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,401

)

Adjusted net income available to common stockholders

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

58,544

 

 

$

55,623

 

Dilutive effect of convertible preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

578

 

Adjusted net income available to common stockholders - diluted

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

58,544

 

 

$

56,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

 

25,254,862

 

 

 

25,734,471

 

 

 

26,486,423

 

 

 

26,793,685

 

 

 

26,979,949

 

 

 

26,060,005

 

 

 

25,480,513

 

Adjusted effects of assumed Preferred Stock conversion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted weighted average shares outstanding - diluted

 

 

25,254,862

 

 

 

25,734,471

 

 

 

26,486,423

 

 

 

26,793,685

 

 

 

26,979,949

 

 

 

26,060,005

 

 

 

25,480,513

 

Adjusted diluted earnings per common share

 

$

0.66

 

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.67

 

 

$

2.25

 

 

$

2.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

$

647,546

 

 

$

646,041

 

 

$

652,347

 

 

$

644,960

 

 

$

632,126

 

 

$

647,726

 

 

$

559,450

 

Average preferred stock liquidation preference

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,624

 

 

 

—

 

 

 

7,885

 

Average total common stockholders' equity

 

 

647,546

 

 

 

646,041

 

 

 

652,347

 

 

 

644,960

 

 

 

629,502

 

 

 

647,726

 

 

 

551,565

 

Average goodwill and other intangibles

 

 

191,551

 

 

 

193,765

 

 

 

196,002

 

 

 

198,389

 

 

 

200,754

 

 

 

194,905

 

 

 

121,820

 

Average tangible common stockholders' equity

 

$

455,995

 

 

$

452,276

 

 

$

456,346

 

 

$

446,571

 

 

$

428,748

 

 

$

452,821

 

 

$

429,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

58,544

 

 

$

51,130

 

Average tangible common equity

 

 

455,995

 

 

 

452,276

 

 

 

456,346

 

 

 

446,571

 

 

 

428,748

 

 

 

452,821

 

 

 

429,745

 

Return on average tangible common equity

 

 

14.54

%

 

 

12.56

%

 

 

11.19

%

 

 

13.43

%

 

 

16.73

%

 

 

12.93

%

 

 

11.90

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted efficiency ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

66,408

 

 

$

64,765

 

 

$

63,419

 

 

$

61,311

 

 

$

64,881

 

 

$

255,903

 

 

$

227,050

 

Non-interest income

 

 

8,666

 

 

 

7,742

 

 

 

7,623

 

 

 

7,538

 

 

 

6,794

 

 

 

31,569

 

 

 

22,970

 

Operating revenue

 

 

75,074

 

 

 

72,507

 

 

 

71,042

 

 

 

68,849

 

 

 

71,675

 

 

 

287,472

 

 

 

250,020

 

Gain on sale of subsidiary or division

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,071

)

Adjusted operating revenue

 

$

75,074

 

 

$

72,507

 

 

$

71,042

 

 

$

68,849

 

 

$

71,675

 

 

$

287,472

 

 

$

248,949

 

Non-interest expenses

 

$

52,661

 

 

$

52,153

 

 

$

50,704

 

 

$

48,566

 

 

$

46,962

 

 

$

204,084

 

 

$

167,353

 

Transaction related costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,965

)

Adjusted non-interest expenses

 

$

52,661

 

 

$

52,153

 

 

$

50,704

 

 

$

48,566

 

 

$

46,962

 

 

$

204,084

 

 

$

160,388

 

Adjusted efficiency ratio

 

 

70.15

%

 

 

71.93

%

 

 

71.37

%

 

 

70.54

%

 

 

65.52

%

 

 

70.99

%

 

 

64.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net non-interest expense to average assets ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses

 

$

52,661

 

 

$

52,153

 

 

$

50,704

 

 

$

48,566

 

 

$

46,962

 

 

$

204,084

 

 

$

167,353

 

Transaction related costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,965

)

Adjusted non-interest expenses

 

$

52,661

 

 

$

52,153

 

 

$

50,704

 

 

$

48,566

 

 

$

46,962

 

 

$

204,084

 

 

$

160,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income

 

$

8,666

 

 

$

7,742

 

 

$

7,623

 

 

$

7,538

 

 

$

6,794

 

 

$

31,569

 

 

$

22,970

 

Gain on sale of subsidiary or division

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,071

)

Adjusted non-interest income

 

$

8,666

 

 

$

7,742

 

 

$

7,623

 

 

$

7,538

 

 

$

6,794

 

 

$

31,569

 

 

$

21,899

 

Adjusted net non-interest expenses

 

$

43,995

 

 

$

44,411

 

 

$

43,081

 

 

$

41,028

 

 

$

40,168

 

 

$

172,515

 

 

$

138,489

 

Average total assets

 

$

5,050,860

 

 

$

4,840,540

 

 

$

4,694,647

 

 

$

4,501,760

 

 

$

4,488,918

 

 

$

4,773,652

 

 

$

3,900,728

 

Adjusted net non-interest expense to average assets ratio

 

 

3.46

%

 

 

3.64

%

 

 

3.68

%

 

 

3.70

%

 

 

3.55

%

 

 

3.61

%

 

 

3.55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

636,590

 

 

$

633,693

 

 

$

643,362

 

 

$

646,216

 

 

$

636,607

 

 

$

636,590

 

 

$

636,607

 

Goodwill and other intangibles

 

 

(190,286

)

 

 

(192,440

)

 

 

(194,668

)

 

 

(197,015

)

 

 

(199,417

)

 

 

(190,286

)

 

 

(199,417

)

Tangible common stockholders' equity

 

$

446,304

 

 

$

441,253

 

 

$

448,694

 

 

$

449,201

 

 

$

437,190

 

 

$

446,304

 

 

$

437,190

 

Common shares outstanding

 

 

24,964,961

 

 

 

25,357,985

 

 

 

26,198,308

 

 

 

26,709,411

 

 

 

26,949,936

 

 

 

24,964,961

 

 

 

26,949,936

 

Tangible book value per share

 

$

17.88

 

 

$

17.40

 

 

$

17.13

 

 

$

16.82

 

 

$

16.22

 

 

$

17.88

 

 

$

16.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets at end of period

 

$

5,060,297

 

 

$

5,039,697

 

 

$

4,783,189

 

 

$

4,529,783

 

 

$

4,559,779

 

 

$

5,060,297

 

 

$

4,559,779

 

Goodwill and other intangibles

 

 

(190,286

)

 

 

(192,440

)

 

 

(194,668

)

 

 

(197,015

)

 

 

(199,417

)

 

 

(190,286

)

 

 

(199,417

)

Tangible assets at period end

 

$

4,870,011

 

 

$

4,847,257

 

 

$

4,588,521

 

 

$

4,332,768

 

 

$

4,360,362

 

 

$

4,870,011

 

 

$

4,360,362

 

Tangible common stockholders' equity ratio

 

 

9.16

%

 

 

9.10

%

 

 

9.78

%

 

 

10.37

%

 

 

10.03

%

 

 

9.16

%

 

 

10.03

%

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 Years Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Loan discount accretion

 

$

1,555

 

 

$

1,159

 

 

$

1,297

 

 

$

1,557

 

 

$

1,411

 

 

$

5,568

 

 

$

8,296

 

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