QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
x | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
March 31, 2024 | December 31, 2023 | |||||||||||||
(Unaudited) | ||||||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | $ | ||||||||||||
Interest bearing deposits with other banks | ||||||||||||||
Total cash and cash equivalents | ||||||||||||||
Securities - equity investments with readily determinable fair values | ||||||||||||||
Securities - available for sale | ||||||||||||||
Securities - held to maturity, net of allowance for credit losses of $ | ||||||||||||||
Loans held for sale | ||||||||||||||
Loans, net of allowance for credit losses of $ | ||||||||||||||
Federal Home Loan Bank and other restricted stock | ||||||||||||||
Premises and equipment, net | ||||||||||||||
Capitalized software, net | ||||||||||||||
Other real estate owned, net | ||||||||||||||
Goodwill | ||||||||||||||
Intangible assets, net | ||||||||||||||
Bank-owned life insurance | ||||||||||||||
Deferred tax asset, net | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Liabilities | ||||||||||||||
Deposits | ||||||||||||||
Noninterest bearing | $ | $ | ||||||||||||
Interest bearing | ||||||||||||||
Total deposits | ||||||||||||||
Federal Home Loan Bank advances | ||||||||||||||
Subordinated notes | ||||||||||||||
Junior subordinated debentures | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies - See Note 6 and Note 7 | ||||||||||||||
Stockholders' equity - See Note 10 | ||||||||||||||
Preferred stock | ||||||||||||||
Common stock, | ||||||||||||||
Additional paid-in-capital | ||||||||||||||
Treasury stock, at cost | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive income (loss) | ( | ( | ||||||||||||
Total stockholders’ equity | ||||||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Interest and dividend income: | ||||||||||||||
Loans, including fees | $ | $ | ||||||||||||
Factored receivables, including fees | ||||||||||||||
Securities | ||||||||||||||
FHLB and other restricted stock | ||||||||||||||
Cash deposits | ||||||||||||||
Total interest income | ||||||||||||||
Interest expense: | ||||||||||||||
Deposits | ||||||||||||||
Subordinated notes | ||||||||||||||
Junior subordinated debentures | ||||||||||||||
Other borrowings | ||||||||||||||
Total interest expense | ||||||||||||||
Net interest income | ||||||||||||||
Credit loss expense (benefit) | ||||||||||||||
Net interest income after credit loss expense (benefit) | ||||||||||||||
Noninterest income: | ||||||||||||||
Service charges on deposits | ||||||||||||||
Card income | ||||||||||||||
Net gains (losses) on sale of loans | ( | ( | ||||||||||||
Fee income | ||||||||||||||
Insurance commissions | ||||||||||||||
Other | ( | |||||||||||||
Total noninterest income | ||||||||||||||
Noninterest expense: | ||||||||||||||
Salaries and employee benefits | ||||||||||||||
Occupancy, furniture and equipment | ||||||||||||||
FDIC insurance and other regulatory assessments | ||||||||||||||
Professional fees | ||||||||||||||
Amortization of intangible assets | ||||||||||||||
Advertising and promotion | ||||||||||||||
Communications and technology | ||||||||||||||
Software amortization | ||||||||||||||
Other | ||||||||||||||
Total noninterest expense | ||||||||||||||
Net income before income tax expense | ||||||||||||||
Income tax expense | ||||||||||||||
Net income | $ | $ | ||||||||||||
Dividends on preferred stock | ( | ( | ||||||||||||
Net income available to common stockholders | $ | $ | ||||||||||||
Earnings per common share | ||||||||||||||
Basic | $ | $ | ||||||||||||
Diluted | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Net income | $ | $ | ||||||||||||
Other comprehensive income: | ||||||||||||||
Unrealized gains (losses) on securities: | ||||||||||||||
Unrealized holding gains (losses) arising during the period | ( | |||||||||||||
Tax effect | ( | |||||||||||||
Unrealized holding gains (losses) arising during the period, net of taxes | ( | |||||||||||||
Reclassification of amount realized through sale or call of securities | ||||||||||||||
Tax effect | ||||||||||||||
Reclassification of amount realized through sale or call of securities, net of taxes | ||||||||||||||
Change in unrealized gains (losses) on securities, net of tax | ( | |||||||||||||
Total other comprehensive income (loss) | ( | |||||||||||||
Comprehensive income | $ | $ |
Preferred Stock | Common Stock | Additional Paid-in- Capital | Treasury Stock | Retained Earnings | Accumulated | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liquidation Preference Amount | Shares Outstanding | Par Amount | Shares Outstanding | Cost | Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2024 | $ | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock and performance stock units | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock awards | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock, net | — | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2024 | $ | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in- Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liquidation Preference Amount | Shares Outstanding | Par Amount | Shares Outstanding | Cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2023 | $ | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock and performance stock units | — | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises, net | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock awards | — | ( | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock, net | — | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||
Depreciation | ||||||||||||||
Net accretion on loans | ( | ( | ||||||||||||
Amortization of subordinated notes issuance costs | ||||||||||||||
Amortization of junior subordinated debentures | ||||||||||||||
Net (accretion) amortization on securities | ( | ( | ||||||||||||
Amortization of intangible assets | ||||||||||||||
Software amortization | ||||||||||||||
Deferred taxes, net | ||||||||||||||
Credit loss expense (benefit) | ||||||||||||||
Stock based compensation | ||||||||||||||
Net (gains) losses on equity securities | ( | |||||||||||||
Origination of loans held for sale | ( | ( | ||||||||||||
Proceeds from sale of loans originated or purchased for sale | ||||||||||||||
Net (gains) losses on sale of loans | ||||||||||||||
Net change in operating leases | ( | ( | ||||||||||||
(Increase) decrease in other assets | ( | ( | ||||||||||||
Increase (decrease) in other liabilities | ( | ( | ||||||||||||
Net cash provided by (used in) operating activities | ( | |||||||||||||
Cash flows from investing activities: | ||||||||||||||
Proceeds from sales of equity securities | ||||||||||||||
Purchases of securities available for sale | ( | ( | ||||||||||||
Proceeds from maturities, calls, and pay downs of securities available for sale | ||||||||||||||
Proceeds from maturities, calls, and pay downs of securities held to maturity | ||||||||||||||
Purchases of loans held for investment | ( | ( | ||||||||||||
Proceeds from sale of loans | ||||||||||||||
Net change in loans | ( | ( | ||||||||||||
Purchases of premises and equipment, net | ( | ( | ||||||||||||
(Purchases) redemptions of FHLB and other restricted stock, net | ( | |||||||||||||
Acquired intangible assets | ( | ( | ||||||||||||
Net cash provided by (used in) investing activities | ( | ( | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Net increase (decrease) in deposits | ( | |||||||||||||
Increase (decrease) in customer repurchase agreements | ||||||||||||||
Increase (decrease) in Federal Home Loan Bank advances | ( | |||||||||||||
Preferred stock dividends | ( | ( | ||||||||||||
Stock option exercises, net | ( | |||||||||||||
Proceeds from employee stock purchase plan common stock issuance | ||||||||||||||
Purchase of treasury stock, net | ( | ( | ||||||||||||
Net cash provided by (used in) financing activities | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | ||||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Supplemental cash flow information: | ||||||||||||||
Interest paid | $ | $ | ||||||||||||
Income taxes paid, net | $ | $ | ||||||||||||
Cash paid for operating lease liabilities | $ | $ | ||||||||||||
Supplemental noncash disclosures: | ||||||||||||||
Loans held for investment transferred to loans held for sale | $ | $ | ||||||||||||
Lease liabilities arising from obtaining right-of-use assets | $ | $ | ||||||||||||
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2024 | 2023 | ||||||||||||
Unrealized gains (losses) on equity securities held at the reporting date | $ | ( | $ | |||||||||||
Realized gains (losses) on equity securities sold during the period | ||||||||||||||
$ | ( | $ |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Equity Securities without readily determinable fair value, at cost | $ | $ | |||||||||
Upward adjustments based on observable price changes, cumulative | |||||||||||
Equity Securities without readily determinable fair value, carrying value | $ | $ |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Asset-backed securities | ( | |||||||||||||||||||||||||||||||
State and municipal | ( | |||||||||||||||||||||||||||||||
CLO securities | ( | |||||||||||||||||||||||||||||||
Corporate bonds | ( | |||||||||||||||||||||||||||||||
SBA pooled securities | ( | |||||||||||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | ( | $ | $ |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrecognized Losses | Fair Value | ||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||
Held to maturity securities: | ||||||||||||||||||||||||||
CLO securities | $ | $ | $ | ( | $ | |||||||||||||||||||||
Allowance for credit losses | ( | |||||||||||||||||||||||||
Total held to maturity securities, net of ACL | $ |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Asset-backed securities | ( | |||||||||||||||||||||||||||||||
State and municipal | ( | |||||||||||||||||||||||||||||||
CLO Securities | ( | |||||||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||
SBA pooled securities | ( | |||||||||||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | ( | $ | $ |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrecognized Losses | Fair Value | ||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||
Held to maturity securities: | ||||||||||||||||||||||||||
CLO securities | $ | $ | $ | ( | $ | |||||||||||||||||||||
Allowance for credit losses | ( | |||||||||||||||||||||||||
Total held to maturity securities, net of ACL | $ |
Available for Sale Securities | Held to Maturity Securities | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
Due in one year or less | $ | $ | $ | $ | ||||||||||||||||||||||
Due from one year to five years | ||||||||||||||||||||||||||
Due from five years to ten years | ||||||||||||||||||||||||||
Due after ten years | ||||||||||||||||||||||||||
Mortgage-backed securities, residential | ||||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||
SBA pooled securities | ||||||||||||||||||||||||||
$ | $ | $ | $ |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Asset-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||
State and municipal | ( | ( | ( | |||||||||||||||||||||||||||||||||||
CLO securities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ||||||||||||||||||||||||||||||||||||
SBA pooled securities | ( | ( | ||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | ( | $ | $ | ( |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Asset-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||
State and municipal | ( | ( | ( | |||||||||||||||||||||||||||||||||||
CLO Securities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||||||||
SBA pooled securities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | ( | $ | $ | ( |
(Dollars in thousands) | Three Months Ended March 31, | |||||||||||||
Held to Maturity CLO Securities | 2024 | 2023 | ||||||||||||
Allowance for credit losses: | ||||||||||||||
Beginning balance | $ | $ | ||||||||||||
Credit loss expense | ( | |||||||||||||
Allowance for credit losses ending balance | $ | $ |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
1-4 family residential | $ | $ | ||||||||||||
Commercial | ||||||||||||||
Total loans held for sale | $ | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unpaid Principal | Difference | Amortized Cost | Unpaid Principal | Difference | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||
Construction, land development, land | ( | ( | ||||||||||||||||||||||||||||||||||||
1-4 family residential | ( | ( | ||||||||||||||||||||||||||||||||||||
Farmland | ( | ( | ||||||||||||||||||||||||||||||||||||
Commercial | ( | ( | ||||||||||||||||||||||||||||||||||||
Factored receivables | ( | ( | ||||||||||||||||||||||||||||||||||||
Consumer | ( | ( | ||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||
Total loans held for investment | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
Allowance for credit losses | ( | ( | ||||||||||||||||||||||||||||||||||||
$ | $ |
(Dollars in thousands) | Beginning Balance | Credit Loss Expense | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||||||||
Three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||
Construction, land development, land | ( | |||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||
Farmland | ( | |||||||||||||||||||||||||||||||
Commercial | ( | |||||||||||||||||||||||||||||||
Factored receivables | ( | |||||||||||||||||||||||||||||||
Consumer | ( | |||||||||||||||||||||||||||||||
Mortgage warehouse | ( | |||||||||||||||||||||||||||||||
$ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||
(Dollars in thousands) | Beginning Balance | Credit Loss Expense | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||||||||
Three months ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||
Construction, land development, land | ( | |||||||||||||||||||||||||||||||
1-4 family residential | ( | |||||||||||||||||||||||||||||||
Farmland | ( | |||||||||||||||||||||||||||||||
Commercial | ( | |||||||||||||||||||||||||||||||
Factored receivables | ( | |||||||||||||||||||||||||||||||
Consumer | ( | |||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||
$ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||
(Dollars in thousands) | Real Estate | Accounts Receivable | Equipment | Other | Total | ACL Allocation | ||||||||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | Real Estate | Accounts Receivable | Equipment | Other | Total | ACL Allocation | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | Past Due 30-59 Days | Past Due 60-90 Days | Past Due 90 Days or More | Total Past Due | Current | Total | Past Due 90 Days or More and Accruing | |||||||||||||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | Past Due 30-59 Days | Past Due 60-90 Days | Past Due 90 Days or More | Total Past Due | Current | Total | Past Due 90 Days or More and Accruing | |||||||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
(Dollars in thousands) | Total Nonaccrual | Nonaccrual With No ACL | Total Nonaccrual | Nonaccrual With No ACL | ||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2024 | 2023 | ||||||||||||
Commercial real estate | $ | $ | ||||||||||||
Construction, land development, land | ||||||||||||||
1-4 family residential | ||||||||||||||
Farmland | ||||||||||||||
Commercial | ||||||||||||||
Factored receivables | ||||||||||||||
Consumer | ||||||||||||||
Mortgage warehouse | ||||||||||||||
$ | $ |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Nonaccrual loans | $ | $ | ||||||||||||
Factored receivables greater than 90 days past due | ||||||||||||||
$ | $ |
Revolving Loans | Revolving Loans Converted To Term Loans | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Year of Origination | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2024 | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total construction, land development, land | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total 1-4 family residential | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total farmland | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total factored receivables | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage warehouse | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Total loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Revolving Loans | Revolving Loans Converted To Term Loans | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Year of Origination | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total construction, land development, land | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total 1-4 family residential | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total farmland | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total factored receivables | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage warehouse | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Total loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
YTD gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Term Extension | ||||||||||||||
Three Months Ended | ||||||||||||||
(Dollars in thousands) | Amortized Cost | % of Portfolio | ||||||||||||
March 31, 2024 | ||||||||||||||
Commercial real estate | $ | % | ||||||||||||
1-4 family residential | % | |||||||||||||
Farmland | % | |||||||||||||
Commercial | % | |||||||||||||
$ | % | |||||||||||||
March 31, 2023 | ||||||||||||||
Commercial real estate | $ | % | ||||||||||||
Commercial | % | |||||||||||||
$ | % |
Payment Delay | ||||||||||||||
Three Months Ended | ||||||||||||||
(Dollars in thousands) | Amortized Cost | % of Portfolio | ||||||||||||
March 31, 2023 | ||||||||||||||
Commercial real estate | $ | % | ||||||||||||
Term Extension | |||||
Three Months Ended | |||||
March 31, 2024 | |||||
Commercial real estate | Modification added a weighted average | ||||
1-4 family residential | Modification added a weighted average | ||||
Farmland | Modification added a weighted average | ||||
Commercial | Modification added a weighted average | ||||
March 31, 2023 | |||||
Commercial real estate | Modification added a weighted average | ||||
Commercial | Modification added a weighted average | ||||
Payment Delay | |||||
Three Months Ended | |||||
March 31, 2023 | |||||
Commercial real estate | Modification provided a weighted average payment delay of | ||||
March 31, 2024 | ||||||||||||||||||||
(Dollars in thousands) | Current | Past Due 30-89 Days | Past Due 90 Days or More | |||||||||||||||||
Commercial real estate | $ | $ | $ | |||||||||||||||||
1-4 family residential | ||||||||||||||||||||
Farmland | ||||||||||||||||||||
Commercial | ||||||||||||||||||||
$ | $ | $ |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Goodwill | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||
Core deposit intangibles | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Customer relationship intangibles | ( | ( | |||||||||||||||||||||||||||||||||
Software intangible assets | ( | ( | |||||||||||||||||||||||||||||||||
Other intangible assets | ( | ( | |||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | ( | $ |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2024 | 2023 | ||||||||||||
Beginning balance | $ | $ | ||||||||||||
Acquired intangible assets | ||||||||||||||
Amortization of intangibles | ( | ( | ||||||||||||
Ending balance | $ | $ |
(Dollars in thousands) | Offering Date | Offering Amount | |||||||||
Trinitas CLO IV, LTD (Trinitas IV) | June 2, 2016 | $ | |||||||||
Trinitas CLO V, LTD (Trinitas V) | September 22, 2016 | $ | |||||||||
Trinitas CLO VI, LTD (Trinitas VI) | June 20, 2017 | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fixed Rate | Variable Rate | Total | Fixed Rate | Variable Rate | Total | |||||||||||||||||||||||||||||
Unused lines of credit | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Standby letters of credit | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commitments to purchase loans | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Mortgage warehouse commitments | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2024 | 2023 | ||||||||||||
Credit loss expense (benefit) | $ | $ |
(Dollars in thousands) | Fair Value Measurements Using | Total Fair Value | ||||||||||||||||||||||||
March 31, 2024 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets measured at fair value on a recurring basis | ||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | $ | $ | ||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||
State and municipal | ||||||||||||||||||||||||||
CLO securities | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
SBA pooled securities | ||||||||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||||
Equity securities with readily determinable fair values | ||||||||||||||||||||||||||
Mutual fund | $ | $ | $ | $ | ||||||||||||||||||||||
Loans held for sale | $ | $ | $ | $ | ||||||||||||||||||||||
Indemnification asset | $ | $ | $ | $ | ||||||||||||||||||||||
Revenue share asset | $ | $ | $ | $ | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value Measurements Using | Total Fair Value | ||||||||||||||||||||||||
December 31, 2023 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets measured at fair value on a recurring basis | ||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | $ | $ | ||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||
State and municipal | ||||||||||||||||||||||||||
CLO Securities | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
SBA pooled securities | ||||||||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||||
Equity securities with readily determinable fair values | ||||||||||||||||||||||||||
Mutual fund | $ | $ | $ | $ | ||||||||||||||||||||||
Loans held for sale | $ | $ | $ | $ | ||||||||||||||||||||||
Indemnification asset | $ | $ | $ | $ | ||||||||||||||||||||||
Revenue share asset | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2024 | 2023 | ||||||||||||
Beginning balance | $ | $ | ||||||||||||
Indemnification asset recognized in business combination | ||||||||||||||
Change in fair value of indemnification asset recognized in earnings | ( | ( | ||||||||||||
Indemnification reduction | ||||||||||||||
Ending balance | $ | $ |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2024 | 2023 | ||||||||||||
Beginning balance | $ | $ | ||||||||||||
Revenue share asset recognized | ||||||||||||||
Change in fair value of revenue share asset recognized in earnings | ( | |||||||||||||
Revenue share payments received | ( | ( | ||||||||||||
Ending balance | $ | $ |
(Dollars in thousands) | Fair Value Measurements Using | Total Fair Value | ||||||||||||||||||||||||
March 31, 2024 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Collateral dependent loans | ||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||
$ | $ | $ | $ |
(Dollars in thousands) | Fair Value Measurements Using | Total Fair Value | ||||||||||||||||||||||||
December 31, 2023 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Collateral dependent loans | ||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||
$ | $ | $ | $ |
(Dollars in thousands) | Carrying Amount | Fair Value Measurements Using | Total Fair Value | |||||||||||||||||||||||||||||
March 31, 2024 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Securities - held to maturity | ||||||||||||||||||||||||||||||||
Loans not previously presented, gross | ||||||||||||||||||||||||||||||||
FHLB and other restricted stock | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | ||||||||||||||||||||||||||||||||
Subordinated notes | ||||||||||||||||||||||||||||||||
Junior subordinated debentures | ||||||||||||||||||||||||||||||||
Accrued interest payable |
(Dollars in thousands) | Carrying Amount | Fair Value Measurements Using | Total Fair Value | |||||||||||||||||||||||||||||
December 31, 2023 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Securities - held to maturity | ||||||||||||||||||||||||||||||||
Loans not previously presented, gross | ||||||||||||||||||||||||||||||||
FHLB and other restricted stock | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | ||||||||||||||||||||||||||||||||
Subordinated notes | ||||||||||||||||||||||||||||||||
Junior subordinated debentures | ||||||||||||||||||||||||||||||||
Accrued interest payable |
(Dollars in thousands) | Actual | Minimum for Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||||||||||||||
March 31, 2024 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Financial, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Financial, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Financial, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Financial, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
As of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Financial, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Financial, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Financial, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Financial, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ |
(Dollars in thousands, except per share amounts) | March 31, 2024 | December 31, 2023 | ||||||||||||
Shares authorized | ||||||||||||||
Shares issued | ||||||||||||||
Shares outstanding | ||||||||||||||
Par value per share | $ | $ | ||||||||||||
Liquidation preference per share | $ | $ | ||||||||||||
Liquidation preference amount | $ | $ | ||||||||||||
Dividend rate | % | % | ||||||||||||
Dividend payment dates | Quarterly | Quarterly |
March 31, 2024 | December 31, 2023 | |||||||||||||
Shares authorized | ||||||||||||||
Shares issued | ||||||||||||||
Treasury shares | ( | ( | ||||||||||||
Shares outstanding | ||||||||||||||
Par value per share | $ | $ |
Nonvested RSAs | Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||
Nonvested at January 1, 2024 | ||||||||||||||
Granted | ||||||||||||||
Vested | ||||||||||||||
Forfeited | ||||||||||||||
Nonvested at March 31, 2024 |
Nonvested RSUs | Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||
Nonvested at January 1, 2024 | ||||||||||||||
Granted | ||||||||||||||
Vested | ( | |||||||||||||
Forfeited | ( | |||||||||||||
Nonvested at March 31, 2024 |
Nonvested Market Based PSUs | Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||
Nonvested at January 1, 2024 | $ | |||||||||||||
Granted | ||||||||||||||
Incremental shares earned | ||||||||||||||
Vested | ||||||||||||||
Forfeited | ||||||||||||||
Nonvested at March 31, 2024 | $ |
Stock Options | Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (In Thousands) | ||||||||||||||||||||||
Outstanding at January 1, 2024 | $ | |||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||
Exercised | ( | |||||||||||||||||||||||||
Forfeited or expired | ||||||||||||||||||||||||||
Outstanding at March 31, 2024 | $ | $ | ||||||||||||||||||||||||
Fully vested shares and shares expected to vest at March 31, 2024 | $ | $ | ||||||||||||||||||||||||
Shares exercisable at March 31, 2024 | $ | $ |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands, except per share amounts) | 2024 | 2023 | ||||||||||||
Aggregate intrinsic value of options exercised | $ | $ | ||||||||||||
Cash received from option exercises, net | ( | |||||||||||||
Tax benefit realized from option exercises | ||||||||||||||
Weighted average fair value per share of options granted | $ | $ |
Three Months Ended March 31, | |||||||||||
(Dollars in thousands) | 2024 | 2023 | |||||||||
Basic | |||||||||||
Net income to common stockholders | $ | $ | |||||||||
Weighted average common shares outstanding | |||||||||||
Basic earnings per common share | $ | $ | |||||||||
Diluted | |||||||||||
Net income to common stockholders | $ | $ | |||||||||
Weighted average common shares outstanding | |||||||||||
Dilutive effects of: | |||||||||||
Assumed exercises of stock options | |||||||||||
Restricted stock awards | |||||||||||
Restricted stock units | |||||||||||
Performance stock units - market based | |||||||||||
Employee stock purchase program | |||||||||||
Average shares and dilutive potential common shares | |||||||||||
Diluted earnings per common share | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Stock options | |||||||||||
Restricted stock awards | |||||||||||
Restricted stock units | |||||||||||
Performance stock units - market based | |||||||||||
Employee stock purchase program | |||||||||||
Accelerated share repurchase |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2024 | 2023 | ||||||||||||
Broker fee income | $ | $ | ||||||||||||
Factor fee income | ||||||||||||||
Other fee income | $ | |||||||||||||
Total fee income | $ | $ |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Three months ended March 31, 2024 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Intersegment interest allocations | ( | |||||||||||||||||||||||||||||||
Total interest expense | ||||||||||||||||||||||||||||||||
Net interest income (expense) | ( | |||||||||||||||||||||||||||||||
Credit loss expense (benefit) | ( | |||||||||||||||||||||||||||||||
Net interest income after credit loss expense | ( | |||||||||||||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||||||
Net intersegment noninterest income (expense)(1) | ( | |||||||||||||||||||||||||||||||
Net income (loss) before income tax expense | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Intersegment interest allocations | ( | |||||||||||||||||||||||||||||||
Total interest expense | ||||||||||||||||||||||||||||||||
Net interest income (expense) | ( | |||||||||||||||||||||||||||||||
Credit loss expense (benefit) | ||||||||||||||||||||||||||||||||
Net interest income after credit loss expense | ( | |||||||||||||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||||||
Net intersegment noninterest income (expense)(1) | ( | |||||||||||||||||||||||||||||||
Net income (loss) before income tax expense | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||
(Dollars in thousands) | Banking | Factoring | Payments | |||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||
Factoring revenue received from Payments | $ | $ | $ | ( | ||||||||||||||||
Payments revenue received from Factoring | ( | |||||||||||||||||||
Banking revenue received from Payments and Factoring | ( | ( | ||||||||||||||||||
Net intersegment noninterest income (expense) | $ | $ | $ | ( | ||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||
Factoring revenue received from Payments | $ | $ | $ | |||||||||||||||||
Payments revenue received from Factoring | ( | |||||||||||||||||||
Banking revenue received from Payments and Factoring | ||||||||||||||||||||
Net intersegment noninterest income (expense) | $ | $ | ( | $ | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
March 31, 2024 | Banking | Factoring | Payments | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Gross loans | $ | $ | $ | $ | $ | ( | $ |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2023 | Banking | Factoring | Payments | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Gross loans | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
(Dollars in thousands, except per share amounts) | 2024 | 2023 | |||||||||
Income Statement Data: | |||||||||||
Interest income | $ | 101,947 | $ | 100,674 | |||||||
Interest expense | 15,912 | 7,292 | |||||||||
Net interest income | 86,035 | 93,382 | |||||||||
Credit loss expense (benefit) | 5,896 | 2,613 | |||||||||
Net interest income after credit loss expense (benefit) | 80,139 | 90,769 | |||||||||
Noninterest income | 14,999 | 11,022 | |||||||||
Noninterest expense | 90,371 | 89,281 | |||||||||
Net income (loss) before income taxes | 4,767 | 12,510 | |||||||||
Income tax expense (benefit) | 609 | 1,500 | |||||||||
Net income (loss) | $ | 4,158 | $ | 11,010 | |||||||
Dividends on preferred stock | (801) | (801) | |||||||||
Net income available (loss) to common stockholders | $ | 3,357 | $ | 10,209 | |||||||
Per Share Data: | |||||||||||
Basic earnings (loss) per common share | $ | 0.14 | $ | 0.44 | |||||||
Diluted earnings (loss) per common share | $ | 0.14 | $ | 0.43 | |||||||
Weighted average shares outstanding - basic | 23,201,259 | 23,361,732 | |||||||||
Weighted average shares outstanding - diluted | 23,650,262 | 23,816,164 | |||||||||
Performance ratios - Annualized: | |||||||||||
Return on average assets | 0.31 | % | 0.84 | % | |||||||
Return on average total equity | 1.90 | % | 5.20 | % | |||||||
Return on average common equity | 1.62 | % | 5.09 | % | |||||||
Return on average tangible common equity (1) | 2.33 | % | 7.56 | % | |||||||
Yield on loans(2) | 9.09 | % | 9.22 | % | |||||||
Cost of interest bearing deposits | 1.99 | % | 0.55 | % | |||||||
Cost of total deposits | 1.17 | % | 0.32 | % | |||||||
Cost of total funds | 1.45 | % | 0.68 | % | |||||||
Net interest margin(2) | 7.29 | % | 8.08 | % | |||||||
Efficiency ratio | 89.45 | % | 85.52 | % | |||||||
Net noninterest expense to average assets | 5.62 | % | 5.98 | % | |||||||
(Dollars in thousands, except per share amounts) | March 31, 2024 | December 31, 2023 | |||||||||
Balance Sheet Data: | |||||||||||
Total assets | $ | 5,575,493 | $ | 5,347,334 | |||||||
Cash and cash equivalents | 417,033 | 286,635 | |||||||||
Investment securities | 327,552 | 307,109 | |||||||||
Loans held for investment, net | 4,156,888 | 4,127,881 | |||||||||
Total liabilities | 4,703,154 | 4,482,934 | |||||||||
Noninterest bearing deposits | 1,747,544 | 1,632,022 | |||||||||
Interest bearing deposits | 2,703,419 | 2,345,456 | |||||||||
FHLB advances | 30,000 | 255,000 | |||||||||
Subordinated notes | 108,807 | 108,678 | |||||||||
Junior subordinated debentures | 41,889 | 41,740 | |||||||||
Total stockholders’ equity | 872,339 | 864,400 | |||||||||
Preferred stockholders' equity | 45,000 | 45,000 | |||||||||
Common stockholders' equity | 827,339 | 819,400 | |||||||||
Per Share Data: | |||||||||||
Book value per share | $ | 35.45 | $ | 35.16 | |||||||
Tangible book value per share (1) | $ | 24.42 | $ | 24.12 | |||||||
Shares outstanding end of period | 23,334,997 | 23,302,414 | |||||||||
Asset Quality ratios(3): | |||||||||||
Past due to total loans | 1.90 | % | 2.00 | % | |||||||
Nonperforming loans to total loans | 1.98 | % | 1.65 | % | |||||||
Nonperforming assets to total assets | 1.61 | % | 1.42 | % | |||||||
ACL to nonperforming loans | 45.93 | % | 51.15 | % | |||||||
ACL to total loans | 0.91 | % | 0.85 | % | |||||||
Net charge-offs to average loans(4) | 0.05 | % | 0.47 | % | |||||||
Capital ratios: | |||||||||||
Tier 1 capital to average assets | 12.99 | % | 12.64 | % | |||||||
Tier 1 capital to risk-weighted assets | 13.62 | % | 13.74 | % | |||||||
Common equity Tier 1 capital to risk-weighted assets | 11.85 | % | 11.94 | % | |||||||
Total capital to risk-weighted assets | 16.69 | % | 16.75 | % | |||||||
Total stockholders' equity to total assets | 15.65 | % | 16.17 | % | |||||||
Tangible common stockholders' equity ratio (1) | 10.71 | % | 11.04 | % |
Three Months Ended March 31, | |||||||||||
(Dollars in thousands, except per share amounts) | 2024 | 2023 | |||||||||
Loan discount accretion | $ | 471 | $ | 1,810 |
Three Months Ended March 31, | |||||||||||
(Dollars in thousands, except per share amounts) | 2024 | 2023 | |||||||||
Average total stockholders' equity | $ | 879,825 | $ | 858,112 | |||||||
Average preferred stock liquidation preference | (45,000) | (45,000) | |||||||||
Average total common stockholders' equity | 834,825 | 813,112 | |||||||||
Average goodwill and other intangibles | (256,070) | (265,320) | |||||||||
Average tangible common equity | $ | 578,755 | $ | 547,792 | |||||||
Net income available to common stockholders | $ | 3,357 | $ | 10,209 | |||||||
Average tangible common equity | 578,755 | 547,792 | |||||||||
Return on average tangible common equity | 2.33 | % | 7.56 | % | |||||||
Efficiency ratio: | |||||||||||
Net interest income | $ | 86,035 | $ | 93,382 | |||||||
Noninterest income | 14,999 | 11,022 | |||||||||
Operating revenue | 101,034 | 104,404 | |||||||||
Total noninterest expense | $ | 90,371 | $ | 89,281 | |||||||
Efficiency ratio | 89.45 | % | 85.52 | % | |||||||
Net noninterest expense to average assets ratio: | |||||||||||
Total noninterest expense | $ | 90,371 | $ | 89,281 | |||||||
Total noninterest income | 14,999 | 11,022 | |||||||||
Net noninterest expenses | $ | 75,372 | $ | 78,259 | |||||||
Average total assets | $ | 5,391,520 | $ | 5,310,024 | |||||||
Net noninterest expense to average assets ratio | 5.62 | % | 5.98 | % |
(Dollars in thousands, except per share amounts) | March 31, 2024 | December 31, 2023 | ||||||||||||
Total stockholders' equity | $ | 872,339 | $ | 864,400 | ||||||||||
Preferred stock | (45,000) | (45,000) | ||||||||||||
Total common stockholders' equity | 827,339 | 819,400 | ||||||||||||
Goodwill and other intangibles | (257,551) | (257,355) | ||||||||||||
Tangible common stockholders' equity | $ | 569,788 | $ | 562,045 | ||||||||||
Common shares outstanding | 23,334,997 | 23,302,414 | ||||||||||||
Tangible book value per share | $ | 24.42 | $ | 24.12 | ||||||||||
Total assets at end of period | $ | 5,575,493 | $ | 5,347,334 | ||||||||||
Goodwill and other intangibles | (257,551) | (257,355) | ||||||||||||
Tangible assets at period end | $ | 5,317,942 | $ | 5,089,979 | ||||||||||
Tangible common stockholders' equity ratio | 10.71 | % | 11.04 | % |
Three Months Ended March 31, 2024 | |||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||
Interest income | $ | 101,947 | $ | 100,674 | $ | 1,273 | 1.3 | % | |||||||||||||||
Interest expense | 15,912 | 7,292 | 8,620 | 118.2 | % | ||||||||||||||||||
Net interest income | 86,035 | 93,382 | (7,347) | (7.9) | % | ||||||||||||||||||
Credit loss expense (benefit) | 5,896 | 2,613 | 3,283 | 125.6 | % | ||||||||||||||||||
Net interest income after credit loss expense (benefit) | 80,139 | 90,769 | (10,630) | (11.7) | % | ||||||||||||||||||
Noninterest income | 14,999 | 11,022 | 3,977 | 36.1 | % | ||||||||||||||||||
Noninterest expense | 90,371 | 89,281 | 1,090 | 1.2 | % | ||||||||||||||||||
Net income (loss) before income taxes | 4,767 | 12,510 | (7,743) | (61.9) | % | ||||||||||||||||||
Income tax expense (benefit) | 609 | 1,500 | (891) | (59.4) | % | ||||||||||||||||||
Net income (loss) | $ | 4,158 | $ | 11,010 | $ | (6,852) | (62.2) | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Average Rate(4) | Average Balance | Interest | Average Rate(4) | |||||||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 360,694 | 4,903 | 5.47 | % | 260,508 | 2,994 | 4.66 | % | |||||||||||||||||||||||||||
Taxable securities | 321,344 | 5,326 | 6.67 | % | 295,353 | 4,029 | 5.53 | % | |||||||||||||||||||||||||||
Tax-exempt securities | 3,508 | 25 | 2.87 | % | 13,142 | 84 | 2.59 | % | |||||||||||||||||||||||||||
FHLB and other restricted stock | 13,649 | 232 | 6.84 | % | 9,951 | 125 | 5.09 | % | |||||||||||||||||||||||||||
Loans (1) | 4,045,366 | 91,461 | 9.09 | % | 4,110,129 | 93,442 | 9.22 | % | |||||||||||||||||||||||||||
Total interest earning assets | 4,744,561 | 101,947 | 8.64 | % | 4,689,083 | 100,674 | 8.71 | % | |||||||||||||||||||||||||||
Noninterest earning assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 81,535 | 94,401 | |||||||||||||||||||||||||||||||||
Other noninterest earning assets | 565,424 | 526,540 | |||||||||||||||||||||||||||||||||
Total assets | 5,391,520 | 5,310,024 | |||||||||||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Interest bearing demand | 731,747 | 851 | 0.47 | % | 836,309 | 570 | 0.28 | % | |||||||||||||||||||||||||||
Individual retirement accounts | 51,433 | 163 | 1.27 | % | 65,182 | 85 | 0.53 | % | |||||||||||||||||||||||||||
Money market | 569,596 | 3,970 | 2.80 | % | 498,083 | 1,130 | 0.92 | % | |||||||||||||||||||||||||||
Savings | 533,695 | 1,322 | 1.00 | % | 544,939 | 309 | 0.23 | % | |||||||||||||||||||||||||||
Certificates of deposit | 263,561 | 1,864 | 2.84 | % | 299,104 | 630 | 0.85 | % | |||||||||||||||||||||||||||
Brokered time deposits | 284,518 | 3,742 | 5.29 | % | 99,226 | 475 | 1.94 | % | |||||||||||||||||||||||||||
Other brokered deposits | 17,860 | 240 | 5.40 | % | 278 | 3 | 4.38 | % | |||||||||||||||||||||||||||
Total interest bearing deposits | 2,452,410 | 12,152 | 1.99 | % | 2,343,121 | 3,202 | 0.55 | % | |||||||||||||||||||||||||||
Federal Home Loan Bank advances | 98,407 | 1,352 | 5.53 | % | 138,778 | 1,747 | 5.11 | % | |||||||||||||||||||||||||||
Subordinated notes | 108,739 | 1,224 | 4.53 | % | 107,901 | 1,309 | 4.92 | % | |||||||||||||||||||||||||||
Junior subordinated debentures | 41,799 | 1,184 | 11.39 | % | 41,227 | 1,034 | 10.17 | % | |||||||||||||||||||||||||||
Other borrowings | — | — | — | % | 2,620 | — | — | % | |||||||||||||||||||||||||||
Total interest bearing liabilities | 2,701,355 | 15,912 | 2.37 | % | 2,633,647 | 7,292 | 1.12 | % | |||||||||||||||||||||||||||
Noninterest bearing liabilities and equity: | |||||||||||||||||||||||||||||||||||
Noninterest bearing demand deposits | 1,724,532 | 1,704,778 | |||||||||||||||||||||||||||||||||
Other liabilities | 85,808 | 113,487 | |||||||||||||||||||||||||||||||||
Total equity | 879,825 | 858,112 | |||||||||||||||||||||||||||||||||
Total liabilities and equity | 5,391,520 | 5,310,024 | |||||||||||||||||||||||||||||||||
Net interest income | 86,035 | 93,382 | |||||||||||||||||||||||||||||||||
Interest spread (2) | 6.27 | % | 7.59 | % | |||||||||||||||||||||||||||||||
Net interest margin (3) | 7.29 | % | 8.08 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||||||||||||||||
Banking loans | $ | 2,932,646 | $ | 53,552 | 7.34 | % | $ | 2,916,614 | $ | 52,538 | 7.31 | % | ||||||||||||||||||||||||||
Factoring receivables | 942,414 | 32,752 | 13.98 | % | 1,110,203 | 38,157 | 13.94 | % | ||||||||||||||||||||||||||||||
Payments receivables | 170,306 | 5,157 | 12.18 | % | 83,312 | 2,747 | 13.37 | % | ||||||||||||||||||||||||||||||
Total loans | $ | 4,045,366 | $ | 91,461 | 9.09 | % | $ | 4,110,129 | $ | 93,442 | 9.22 | % |
Three Months Ended | |||||||||||||||||
March 31, 2024 vs. 2023 | |||||||||||||||||
Increase (Decrease) Due to: | |||||||||||||||||
(Dollars in thousands) | Rate | Volume | Net Increase | ||||||||||||||
Interest earning assets: | |||||||||||||||||
Cash and cash equivalents | $ | 547 | $ | 1,362 | $ | 1,909 | |||||||||||
Taxable securities | 866 | 431 | 1,297 | ||||||||||||||
Tax-exempt securities | 10 | (69) | (59) | ||||||||||||||
FHLB and other restricted stock | 44 | 63 | 107 | ||||||||||||||
Loans | (517) | (1,464) | (1,981) | ||||||||||||||
Total interest income | 950 | 323 | 1,273 | ||||||||||||||
Interest bearing liabilities: | |||||||||||||||||
Interest bearing demand | 403 | (122) | 281 | ||||||||||||||
Individual retirement accounts | 122 | (44) | 78 | ||||||||||||||
Money market | 2,342 | 498 | 2,840 | ||||||||||||||
Savings | 1,041 | (28) | 1,013 | ||||||||||||||
Certificates of deposit | 1,485 | (251) | 1,234 | ||||||||||||||
Brokered time deposits | 830 | 2,437 | 3,267 | ||||||||||||||
Other brokered deposits | 1 | 236 | 237 | ||||||||||||||
Total interest bearing deposits | 6,224 | 2,726 | 8,950 | ||||||||||||||
Federal Home Loan Bank advances | 160 | (555) | (395) | ||||||||||||||
Subordinated notes | (94) | 9 | (85) | ||||||||||||||
Junior subordinated debentures | 134 | 16 | 150 | ||||||||||||||
Other borrowings | — | — | — | ||||||||||||||
Total interest expense | 6,424 | 2,196 | 8,620 | ||||||||||||||
Change in net interest income | $ | (5,474) | $ | (1,873) | $ | (7,347) |
Three Months Ended March 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||
Credit loss expense (benefit) on loans | $ | 4,909 | $ | 1,653 | $ | 3,256 | 197.0 | % | |||||||||||||||
Credit loss expense (benefit) on off balance sheet credit exposures | 1,042 | 819 | 223 | 27.2 | % | ||||||||||||||||||
Credit loss expense (benefit) on held to maturity securities | (55) | 141 | (196) | (139.0) | % | ||||||||||||||||||
Credit loss expense on available for sale securities | — | — | — | — | |||||||||||||||||||
Total credit loss expense (benefit) | $ | 5,896 | $ | 2,613 | $ | 3,283 | 125.6 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||
Service charges on deposits | $ | 1,727 | $ | 1,713 | $ | 14 | 0.8 | % | |||||||||||||||
Card income | 1,868 | 1,968 | (100) | (5.1) | % | ||||||||||||||||||
Net gains (losses) on sale of loans | (192) | (84) | (108) | (128.6) | % | ||||||||||||||||||
Fee income | 8,683 | 6,150 | 2,533 | 41.2 | % | ||||||||||||||||||
Insurance commissions | 1,568 | 1,593 | (25) | (1.6) | % | ||||||||||||||||||
Other | 1,345 | (318) | 1,663 | 523.0 | % | ||||||||||||||||||
Total noninterest income | $ | 14,999 | $ | 11,022 | $ | 3,977 | 36.1 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||
Salaries and employee benefits | $ | 54,185 | $ | 54,686 | $ | (501) | (0.9) | % | |||||||||||||||
Occupancy, furniture and equipment | 7,636 | 6,703 | 933 | 13.9 | % | ||||||||||||||||||
FDIC insurance and other regulatory assessments | 653 | 418 | 235 | 56.2 | % | ||||||||||||||||||
Professional fees | 3,541 | 3,085 | 456 | 14.8 | % | ||||||||||||||||||
Amortization of intangible assets | 2,724 | 2,850 | (126) | (4.4) | % | ||||||||||||||||||
Advertising and promotion | 1,214 | 1,371 | (157) | (11.5) | % | ||||||||||||||||||
Communications and technology | 11,894 | 11,346 | 548 | 4.8 | % | ||||||||||||||||||
Software amortization | 1,174 | 987 | 187 | 18.9 | % | ||||||||||||||||||
Travel and entertainment | 1,509 | 1,898 | (389) | (20.5) | % | ||||||||||||||||||
Other | 5,841 | 5,937 | (96) | (1.6) | % | ||||||||||||||||||
Total noninterest expense | $ | 90,371 | $ | 89,281 | $ | 1,090 | 1.2 | % |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | 63,994 | $ | 32,752 | $ | 5,157 | $ | 44 | $ | 101,947 | ||||||||||||||||||||||
Intersegment interest allocations | 6,744 | (8,905) | 2,161 | — | — | |||||||||||||||||||||||||||
Total interest expense | 13,504 | — | — | 2,408 | 15,912 | |||||||||||||||||||||||||||
Net interest income (expense) | 57,234 | 23,847 | 7,318 | (2,364) | 86,035 | |||||||||||||||||||||||||||
Credit loss expense (benefit) | 4,527 | 1,355 | 69 | (55) | 5,896 | |||||||||||||||||||||||||||
Net interest income after credit loss expense | 52,707 | 22,492 | 7,249 | (2,309) | 80,139 | |||||||||||||||||||||||||||
Noninterest income | 6,476 | 2,903 | 5,543 | 77 | 14,999 | |||||||||||||||||||||||||||
Noninterest expense | 31,129 | 18,693 | 16,485 | 24,064 | 90,371 | |||||||||||||||||||||||||||
Net intersegment noninterest income (expense)(1) | 121 | 389 | (510) | — | — | |||||||||||||||||||||||||||
Net income (loss) before income tax expense | $ | 28,175 | $ | 7,091 | $ | (4,203) | $ | (26,296) | $ | 4,767 |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | 59,726 | $ | 38,157 | $ | 2,747 | $ | 44 | $ | 100,674 | ||||||||||||||||||||||
Intersegment interest allocations | 7,612 | (9,154) | 1,542 | — | — | |||||||||||||||||||||||||||
Total interest expense | 4,948 | — | — | 2,344 | 7,292 | |||||||||||||||||||||||||||
Net interest income (expense) | 62,390 | 29,003 | 4,289 | (2,300) | 93,382 | |||||||||||||||||||||||||||
Credit loss expense (benefit) | 1,923 | 549 | — | 141 | 2,613 | |||||||||||||||||||||||||||
Net interest income after credit loss expense | 60,467 | 28,454 | 4,289 | (2,441) | 90,769 | |||||||||||||||||||||||||||
Noninterest income | 5,673 | 1,578 | 3,707 | 64 | 11,022 | |||||||||||||||||||||||||||
Noninterest expense | 32,240 | 21,769 | 15,417 | 19,855 | 89,281 | |||||||||||||||||||||||||||
Net intersegment noninterest income (expense)(1) | — | (265) | 265 | — | — | |||||||||||||||||||||||||||
Net income (loss) before income tax expense | $ | 33,900 | $ | 7,998 | $ | (7,156) | $ | (22,232) | $ | 12,510 |
(Dollars in thousands) | Banking | Factoring | Payments | |||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||
Factoring revenue received from Payments | $ | — | $ | 750 | $ | (750) | ||||||||||||||
Payments revenue received from Factoring | — | (265) | 265 | |||||||||||||||||
Banking revenue received from Payments and Factoring | 121 | (96) | (25) | |||||||||||||||||
Net intersegment noninterest income (expense) | $ | 121 | $ | 389 | $ | (510) | ||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||
Factoring revenue received from Payments | $ | — | $ | — | $ | — | ||||||||||||||
Payments revenue received from Factoring | — | (265) | 265 | |||||||||||||||||
Banking revenue received from Payments and Factoring | — | — | — | |||||||||||||||||
Net intersegment noninterest income (expense) | $ | — | $ | (265) | $ | 265 |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
March 31, 2024 | Banking | Factoring | Payments | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||
Total assets | $ | 5,120,449 | $ | 1,097,627 | $ | 490,667 | $ | 1,064,770 | $ | (2,198,020) | $ | 5,575,493 | ||||||||||||||||||||||||||
Gross loans | $ | 3,584,504 | $ | 976,761 | $ | 177,286 | $ | — | $ | (543,431) | $ | 4,195,120 | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2023 | Banking | Factoring | Payments | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||
Total assets | $ | 4,918,527 | $ | 1,077,367 | $ | 546,985 | $ | 1,056,646 | $ | (2,252,191) | $ | 5,347,334 | ||||||||||||||||||||||||||
Gross loans | $ | 3,595,527 | $ | 941,926 | $ | 174,728 | $ | — | $ | (549,081) | $ | 4,163,100 |
(Dollars in thousands) | Three Months Ended March 31, | |||||||||||||||||||||||||
Banking | 2024 | 2023 | $ Change | % Change | ||||||||||||||||||||||
Total interest income | $ | 63,994 | $ | 59,726 | $ | 4,268 | 7.1 | % | ||||||||||||||||||
Intersegment interest allocations | 6,744 | 7,612 | (868) | (11.4) | % | |||||||||||||||||||||
Total interest expense | 13,504 | 4,948 | 8,556 | 172.9 | % | |||||||||||||||||||||
Net interest income (expense) | 57,234 | 62,390 | (5,156) | (8.3) | % | |||||||||||||||||||||
Credit loss expense (benefit) | 4,527 | 1,923 | 2,604 | 135.4 | % | |||||||||||||||||||||
Net interest income after credit loss expense | 52,707 | 60,467 | (7,760) | (12.8) | % | |||||||||||||||||||||
Noninterest income | 6,476 | 5,673 | 803 | 14.2 | % | |||||||||||||||||||||
Noninterest expense | 31,129 | 32,240 | (1,111) | (3.4) | % | |||||||||||||||||||||
Net intersegment noninterest income (expense) | 121 | — | 121 | 100.0 | % | |||||||||||||||||||||
Operating income (loss) | $ | 28,175 | $ | 33,900 | $ | (5,725) | (16.9) | % |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | $ Change | % Change | |||||||||||||||||||
Banking | |||||||||||||||||||||||
Commercial real estate | $ | 819,721 | $ | 812,704 | $ | 7,017 | 0.9 | % | |||||||||||||||
Construction, land development, land | 222,859 | 136,720 | 86,139 | 63.0 | % | ||||||||||||||||||
1-4 family residential | 130,200 | 125,916 | 4,284 | 3.4 | % | ||||||||||||||||||
Farmland | 58,431 | 63,568 | (5,137) | (8.1) | % | ||||||||||||||||||
Commercial - General | 308,145 | 303,332 | 4,813 | 1.6 | % | ||||||||||||||||||
Commercial - Agriculture | 46,986 | 47,059 | (73) | (0.2) | % | ||||||||||||||||||
Commercial - Equipment | 440,458 | 460,008 | (19,550) | (4.2) | % | ||||||||||||||||||
Commercial - Asset-based lending | 260,043 | 246,065 | 13,978 | 5.7 | % | ||||||||||||||||||
Commercial - Liquid Credit | 105,238 | 113,901 | (8,663) | (7.6) | % | ||||||||||||||||||
Consumer | 7,176 | 8,326 | (1,150) | (13.8) | % | ||||||||||||||||||
Mortgage Warehouse | 641,816 | 728,847 | (87,031) | (11.9) | % | ||||||||||||||||||
Total banking loans | $ | 3,041,073 | $ | 3,046,446 | $ | (5,373) | (0.2) | % |
(Dollars in thousands) | Three Months Ended March 31, | |||||||||||||||||||||||||
Factoring | 2024 | 2023 | $ Change | % Change | ||||||||||||||||||||||
Total interest income | $ | 32,752 | $ | 38,157 | $ | (5,405) | (14.2) | % | ||||||||||||||||||
Intersegment interest allocations | (8,905) | (9,154) | 249 | 2.7 | % | |||||||||||||||||||||
Total interest expense | — | — | — | — | ||||||||||||||||||||||
Net interest income (expense) | 23,847 | 29,003 | (5,156) | (17.8) | % | |||||||||||||||||||||
Credit loss expense (benefit) | 1,355 | 549 | 806 | 146.8 | % | |||||||||||||||||||||
Net interest income (expense) after credit loss expense | 22,492 | 28,454 | (5,962) | (21.0) | % | |||||||||||||||||||||
Noninterest income | 2,903 | 1,578 | 1,325 | 84.0 | % | |||||||||||||||||||||
Noninterest expense | 18,693 | 21,769 | (3,076) | (14.1) | % | |||||||||||||||||||||
Net intersegment noninterest income (expense) | 389 | (265) | 654 | 246.8 | % | |||||||||||||||||||||
Net income (loss) before income tax expense | $ | 7,091 | $ | 7,998 | $ | (907) | (11.3) | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Factored receivable period end balance | $ | 976,761,000 | $ | 1,096,071,000 | |||||||
Yield on average receivable balance | 13.98 | % | 13.94 | % | |||||||
Current quarter charge-off rate | 0.13 | % | 0.19 | % | |||||||
Factored receivables - transportation concentration | 97 | % | 95 | % | |||||||
Interest income, including fees | $ | 32,752,000 | $ | 38,157,000 | |||||||
Non-interest income | 2,903,000 | 1,578,000 | |||||||||
Intersegment noninterest income | 750,000 | — | |||||||||
Factored receivable total revenue | 36,405,000 | 39,735,000 | |||||||||
Average net funds employed | 839,136,000 | 976,216,000 | |||||||||
Yield on average net funds employed | 17.45 | % | 16.51 | % | |||||||
Accounts receivable purchased | $ | 2,469,797,000 | $ | 2,927,104,000 | |||||||
Number of invoices purchased | 1,367,625 | 1,491,763 | |||||||||
Average invoice size | $ | 1,806 | $ | 1,962 | |||||||
Average invoice size - transportation | $ | 1,771 | $ | 1,911 | |||||||
Average invoice size - non-transportation | $ | 4,099 | $ | 5,205 |
(Dollars in thousands) | Three Months Ended March 31, | |||||||||||||||||||||||||
Payments | 2024 | 2023 | $ Change | % Change | ||||||||||||||||||||||
Total interest income | $ | 5,157 | $ | 2,747 | $ | 2,410 | 87.7 | % | ||||||||||||||||||
Intersegment interest allocations | 2,161 | 1,542 | 619 | 40.1 | % | |||||||||||||||||||||
Total interest expense | — | — | — | — | % | |||||||||||||||||||||
Net interest income (expense) | 7,318 | 4,289 | 3,029 | 70.6 | % | |||||||||||||||||||||
Credit loss expense (benefit) | 69 | — | 69 | 100.0 | % | |||||||||||||||||||||
Net interest income after credit loss expense | 7,249 | 4,289 | 2,960 | 69.0 | % | |||||||||||||||||||||
Noninterest income | 5,543 | 3,707 | 1,836 | 49.5 | % | |||||||||||||||||||||
Noninterest expense | 16,485 | 15,417 | 1,068 | 6.9 | % | |||||||||||||||||||||
Net intersegment noninterest income (expense) | (510) | 265 | (775) | (292.5) | % | |||||||||||||||||||||
Net income (loss) before income tax expense | $ | (4,203) | $ | (7,156) | $ | 2,953 | 41.3 | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Supply chain financing factored receivables | $ | 98,593,000 | $ | 132,000 | |||||||
Quickpay factored receivables | 78,693,000 | 81,901,000 | |||||||||
Factored receivable period end balance | $ | 177,286,000 | $ | 82,033,000 | |||||||
Supply chain finance interest income | $ | 2,553,000 | $ | 1,000 | |||||||
Quickpay interest income | 2,604,000 | 2,746,000 | |||||||||
Intersegment interest income | 2,161,000 | 1,542,000 | |||||||||
Total interest income | 7,318,000 | 4,289,000 | |||||||||
Broker noninterest income | 4,115,000 | 2,356,000 | |||||||||
Factor noninterest income | 1,295,000 | 1,276,000 | |||||||||
Other noninterest income | 133,000 | 75,000 | |||||||||
Intersegment noninterest income | 265,000 | 265,000 | |||||||||
Total noninterest income | 5,808,000 | 3,972,000 | |||||||||
Total revenue | $ | 13,126,000 | $ | 8,261,000 | |||||||
Intersegment interest expense allocation | $ | — | $ | — | |||||||
Credit loss expense (benefit) | 69,000 | — | |||||||||
Noninterest expense | 16,485,000 | 15,417,000 | |||||||||
Intersegment noninterest expense | 775,000 | — | |||||||||
Total expense | $ | 17,329,000 | $ | 15,417,000 | |||||||
Operating income (loss) | $ | (4,203,000) | $ | (7,156,000) | |||||||
Intersegment interest expense | — | — | |||||||||
Depreciation expense | 244,000 | 15,000 | |||||||||
Software amortization expense | 527,000 | 178,000 | |||||||||
Intangible amortization expense | 1,702,000 | 1,548,000 | |||||||||
Earnings (losses) before interest, taxes, depreciation, and amortization | $ | (1,730,000) | $ | (5,415,000) | |||||||
EBITDA margin | (13) | % | (66) | % | |||||||
Number of invoices processed | 5,717,016 | 4,260,654 | |||||||||
Amount of payments processed | $ | 6,379,680,000 | $ | 5,030,548,000 | |||||||
Network invoice volume | 621,209 | 159,353 | |||||||||
Network payment volume | $ | 1,035,099,000 | $ | 289,667,000 |
(Dollars in thousands) | Three Months Ended March 31, | |||||||||||||||||||||||||
Corporate | 2024 | 2023 | $ Change | % Change | ||||||||||||||||||||||
Total interest income | $ | 44 | $ | 44 | $ | — | — | % | ||||||||||||||||||
Intersegment interest allocations | — | — | — | — | ||||||||||||||||||||||
Total interest expense | 2,408 | 2,344 | 64 | 2.7 | % | |||||||||||||||||||||
Net interest income (expense) | (2,364) | (2,300) | (64) | (2.8) | % | |||||||||||||||||||||
Credit loss expense (benefit) | (55) | 141 | (196) | (139.0) | % | |||||||||||||||||||||
Net interest income (expense) after credit loss expense | (2,309) | (2,441) | 132 | 5.4 | % | |||||||||||||||||||||
Other noninterest income | 77 | 64 | 13 | 20.3 | % | |||||||||||||||||||||
Noninterest expense | 24,064 | 19,855 | 4,209 | 21.2 | % | |||||||||||||||||||||
Net income (loss) before income tax expense | $ | (26,296) | $ | (22,232) | $ | (4,064) | (18.3) | % |
March 31, 2024 | December 31, 2023 | $ Change | % Change | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | % of Total | % of Total | ||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 819,721 | 20 | % | $ | 812,704 | 20 | % | $ | 7,017 | 0.9 | % | ||||||||||||||||||||||||||
Construction, land development, land | 222,859 | 5 | % | 136,720 | 3 | % | 86,139 | 63.0 | % | |||||||||||||||||||||||||||||
1-4 family residential | 130,200 | 3 | % | 125,916 | 3 | % | 4,284 | 3.4 | % | |||||||||||||||||||||||||||||
Farmland | 58,431 | 1 | % | 63,568 | 2 | % | (5,137) | (8.1 | %) | |||||||||||||||||||||||||||||
Commercial | 1,160,870 | 28 | % | 1,170,365 | 28 | % | (9,495) | (0.8 | %) | |||||||||||||||||||||||||||||
Factored receivables | 1,154,047 | 28 | % | 1,116,654 | 26 | % | 37,393 | 3.3 | % | |||||||||||||||||||||||||||||
Consumer | 7,176 | — | % | 8,326 | — | % | (1,150) | (13.8 | %) | |||||||||||||||||||||||||||||
Mortgage warehouse | 641,816 | 15 | % | 728,847 | 18 | % | (87,031) | (11.9 | %) | |||||||||||||||||||||||||||||
Total Loans | $ | 4,195,120 | 100 | % | $ | 4,163,100 | 100 | % | $ | 32,020 | 0.8 | % |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | $ Change | % Change | ||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Equipment | $ | 440,458 | $ | 460,008 | $ | (19,550) | (4.2 | %) | ||||||||||||||||||
Asset-based lending | 260,043 | 246,065 | 13,978 | 5.7 | % | |||||||||||||||||||||
Liquid credit | 105,238 | 113,901 | (8,663) | (7.6 | %) | |||||||||||||||||||||
Agriculture | 46,986 | 47,059 | (73) | (0.2 | %) | |||||||||||||||||||||
Other commercial lending | 308,145 | 303,332 | 4,813 | 1.6 | % | |||||||||||||||||||||
Total commercial loans | $ | 1,160,870 | $ | 1,170,365 | $ | (9,495) | (0.8 | %) |
March 31, 2024 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | One Year or Less | After One but within Five Years | After Five but within Fifteen Years | After Fifteen Years | Total | |||||||||||||||||||||||||||
Commercial real estate | $ | 320,009 | $ | 455,922 | $ | 43,715 | $ | 75 | $ | 819,721 | ||||||||||||||||||||||
Construction, land development, land | 117,281 | 102,717 | 2,861 | — | 222,859 | |||||||||||||||||||||||||||
1-4 family residential | 6,209 | 32,662 | 7,750 | 83,579 | 130,200 | |||||||||||||||||||||||||||
Farmland | 6,315 | 29,356 | 21,529 | 1,231 | 58,431 | |||||||||||||||||||||||||||
Commercial | 353,619 | 778,470 | 28,781 | — | 1,160,870 | |||||||||||||||||||||||||||
Factored receivables | 1,154,047 | — | — | — | 1,154,047 | |||||||||||||||||||||||||||
Consumer | 792 | 5,235 | 1,142 | 7 | 7,176 | |||||||||||||||||||||||||||
Mortgage warehouse | 641,816 | — | — | — | 641,816 | |||||||||||||||||||||||||||
$ | 2,600,088 | $ | 1,404,362 | $ | 105,778 | $ | 84,892 | $ | 4,195,120 | |||||||||||||||||||||||
Sensitivity of loans to changes in interest rates: | After One but within Five Years | After Five but within Fifteen Years | After Fifteen Years | |||||||||||||||||||||||||||||
Predetermined (fixed) interest rates | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 267,337 | $ | 2,339 | $ | — | ||||||||||||||||||||||||||
Construction, land development, land | 83,591 | 283 | — | |||||||||||||||||||||||||||||
1-4 family residential | 25,260 | 1,784 | 6,107 | |||||||||||||||||||||||||||||
Farmland | 22,490 | 1,048 | — | |||||||||||||||||||||||||||||
Commercial | 520,159 | 20,362 | — | |||||||||||||||||||||||||||||
Factored receivables | — | — | — | |||||||||||||||||||||||||||||
Consumer | 5,235 | 1,142 | 7 | |||||||||||||||||||||||||||||
Mortgage warehouse | — | — | — | |||||||||||||||||||||||||||||
$ | 924,072 | $ | 26,958 | $ | 6,114 | |||||||||||||||||||||||||||
Floating interest rates | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 188,585 | $ | 41,376 | $ | 75 | ||||||||||||||||||||||||||
Construction, land development, land | 19,126 | 2,578 | — | |||||||||||||||||||||||||||||
1-4 family residential | 7,402 | 5,966 | 77,472 | |||||||||||||||||||||||||||||
Farmland | 6,866 | 20,481 | 1,231 | |||||||||||||||||||||||||||||
Commercial | 258,311 | 8,419 | — | |||||||||||||||||||||||||||||
Factored receivables | — | — | — | |||||||||||||||||||||||||||||
Consumer | — | — | — | |||||||||||||||||||||||||||||
Mortgage warehouse | — | — | — | |||||||||||||||||||||||||||||
$ | 480,290 | $ | 78,820 | $ | 78,778 | |||||||||||||||||||||||||||
Total | $ | 1,404,362 | $ | 105,778 | $ | 84,892 |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Nonperforming loans: | ||||||||||||||
Commercial real estate | $ | 2,362 | $ | 2,447 | ||||||||||
Construction, land development, land | 390 | — | ||||||||||||
1-4 family residential | 1,166 | 1,178 | ||||||||||||
Farmland | 1,114 | 968 | ||||||||||||
Commercial | 55,000 | 40,951 | ||||||||||||
Factored receivables | 23,036 | 23,181 | ||||||||||||
Consumer | 174 | 133 | ||||||||||||
Mortgage warehouse | — | — | ||||||||||||
Total nonperforming loans | 83,242 | 68,858 | ||||||||||||
Held to maturity securities | 4,766 | 4,766 | ||||||||||||
Equity investments without readily determinable fair value | 1,170 | 1,170 | ||||||||||||
Other real estate owned, net | 37 | 37 | ||||||||||||
Other repossessed assets | 373 | 950 | ||||||||||||
Total nonperforming assets | $ | 89,588 | $ | 75,781 | ||||||||||
Nonperforming assets to total assets | 1.61 | % | 1.42 | % | ||||||||||
Nonperforming loans to total loans held for investment | 1.98 | % | 1.65 | % | ||||||||||
Total past due loans to total loans held for investment | 1.90 | % | 2.00 | % |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Allocated Allowance | % of Loan Portfolio | ACL to Loans | Allocated Allowance | % of Loan Portfolio | ACL to Loans | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,666 | 20 | % | 0.69 | % | $ | 6,030 | 20 | % | 0.74 | % | ||||||||||||||||||||||||||
Construction, land development, land | 2,652 | 5 | % | 1.19 | % | 965 | 3 | % | 0.71 | % | ||||||||||||||||||||||||||||
1-4 family residential | 979 | 3 | % | 0.75 | % | 927 | 3 | % | 0.74 | % | ||||||||||||||||||||||||||||
Farmland | 407 | 1 | % | 0.70 | % | 442 | 2 | % | 0.70 | % | ||||||||||||||||||||||||||||
Commercial | 16,560 | 28 | % | 1.43 | % | 14,060 | 28 | % | 1.20 | % | ||||||||||||||||||||||||||||
Factored receivables | 11,192 | 28 | % | 0.97 | % | 11,896 | 26 | % | 1.07 | % | ||||||||||||||||||||||||||||
Consumer | 135 | — | % | 1.88 | % | 171 | — | % | 2.05 | % | ||||||||||||||||||||||||||||
Mortgage warehouse | 641 | 15 | % | 0.10 | % | 728 | 18 | % | 0.10 | % | ||||||||||||||||||||||||||||
Total Loans | $ | 38,232 | 100 | % | 0.91 | % | $ | 35,219 | 100 | % | 0.85 | % |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Allowance for credit losses on loans | $ | 38,232 | $ | 35,219 | |||||||
Total loans held for investment | $ | 4,195,120 | $ | 4,163,100 | |||||||
Allowance to total loans held for investment | 0.91 | % | 0.85 | % | |||||||
Nonaccrual loans | $ | 60,206 | $ | 45,677 | |||||||
Total loans held for investment | $ | 4,195,120 | $ | 4,163,100 | |||||||
Nonaccrual loans to total loans held for investment | 1.44 | % | 1.10 | % | |||||||
Allowance for credit losses on loans | $ | 38,232 | $ | 35,219 | |||||||
Nonaccrual loans | $ | 60,206 | $ | 45,677 | |||||||
Allowance for credit losses to nonaccrual loans | 63.50 | % | 77.10 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Net Charge-Offs | Average Loans HFI | Net Charge-Off Ratio | Net Charge-Offs | Average Loans HFI | Net Charge-Off Ratio | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | 813,429 | — | % | $ | (70) | $ | 686,183 | (0.01) | % | ||||||||||||||||||||||||||
Construction, land development, land | 14 | 147,527 | 0.01 | % | (1) | 97,629 | — | % | ||||||||||||||||||||||||||||||
1-4 family residential | (2) | 126,535 | — | % | 3 | 129,292 | — | % | ||||||||||||||||||||||||||||||
Farmland | — | 60,086 | — | % | — | 68,355 | — | % | ||||||||||||||||||||||||||||||
Commercial | 551 | 1,140,390 | 0.05 | % | 182 | 1,196,585 | 0.02 | % | ||||||||||||||||||||||||||||||
Factored receivables | 1,260 | 1,112,717 | 0.11 | % | 2,090 | 1,193,515 | 0.18 | % | ||||||||||||||||||||||||||||||
Consumer | 73 | 9,545 | 0.76 | % | 11 | 9,630 | 0.11 | % | ||||||||||||||||||||||||||||||
Mortgage warehouse | — | 633,876 | — | % | — | 718,759 | — | % | ||||||||||||||||||||||||||||||
Total Loans | $ | 1,896 | $ | 4,044,105 | 0.05 | % | $ | 2,215 | $ | 4,099,948 | 0.05 | % |
Available For Sale Debt Securities: | |||||||||||||||||||||||
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | $ Change | % Change | |||||||||||||||||||
Mortgage-backed securities, residential | $ | 67,634 | $ | 55,839 | $ | 11,795 | 21.1 | % | |||||||||||||||
Asset-backed securities | 1,114 | 1,170 | (56) | (4.8) | % | ||||||||||||||||||
State and municipal | 3,448 | 4,515 | (1,067) | (23.6) | % | ||||||||||||||||||
CLO Securities | 246,118 | 236,291 | 9,827 | 4.2 | % | ||||||||||||||||||
Corporate bonds | 264 | 275 | (11) | (4.0) | % | ||||||||||||||||||
SBA pooled securities | 1,523 | 1,554 | (31) | (2.0) | % | ||||||||||||||||||
$ | 320,101 | $ | 299,644 | $ | 20,457 | 6.8 | % |
Maturity as of March 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One Year or Less | After One but within Five Years | After Five but within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Average Yield | Amortized Cost | Average Yield | Amortized Cost | Average Yield | Amortized Cost | Average Yield | Amortized Cost | Average Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 5 | 4.53 | % | $ | 8,502 | 4.98 | % | $ | 1,243 | 2.67 | % | $ | 63,106 | 2.98 | % | $ | 72,856 | 3.21 | % | ||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | — | — | % | — | — | % | 1,116 | 7.04 | % | — | — | % | 1,116 | 7.04 | % | |||||||||||||||||||||||||||||||||||||||||||||||
State and municipal | 572 | 3.87 | % | 2,187 | 2.84 | % | 262 | 2.25 | % | 503 | 2.65 | % | 3,524 | 2.94 | % | |||||||||||||||||||||||||||||||||||||||||||||||
CLO securities | — | — | % | — | — | % | 69,034 | 7.50 | % | 175,801 | 7.67 | % | 244,835 | 7.62 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | — | — | % | — | — | % | 267 | 5.07 | % | — | — | % | 267 | 5.07 | % | |||||||||||||||||||||||||||||||||||||||||||||||
SBA pooled securities | — | — | % | — | — | % | 414 | 3.35 | % | 1,208 | 3.91 | % | 1,622 | 3.77 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total available for sale securities | $ | 577 | 3.88 | % | $ | 10,689 | 4.55 | % | $ | 72,336 | 7.37 | % | $ | 240,618 | 6.41 | % | $ | 324,220 | 6.56 | % | ||||||||||||||||||||||||||||||||||||||||||
Held to maturity securities: | $ | — | — | % | $ | 4,767 | — | % | $ | 1,378 | 11.73 | % | $ | — | — | % | $ | 6,145 | 2.44 | % |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | $ Change | % Change | ||||||||||||||||||||||
Noninterest bearing demand | $ | 1,747,544 | $ | 1,632,022 | $ | 115,522 | 7.1 | % | ||||||||||||||||||
Interest bearing demand | 744,208 | 757,455 | (13,247) | (1.7 | %) | |||||||||||||||||||||
Individual retirement accounts | 50,730 | 52,195 | (1,465) | (2.8 | %) | |||||||||||||||||||||
Money market | 601,685 | 568,772 | 32,913 | 5.8 | % | |||||||||||||||||||||
Savings | 547,471 | 555,047 | (7,576) | (1.4 | %) | |||||||||||||||||||||
Certificates of deposit | 261,614 | 265,525 | (3,911) | (1.5 | %) | |||||||||||||||||||||
Brokered time deposits | 397,645 | 146,458 | 251,187 | 171.5 | % | |||||||||||||||||||||
Other brokered deposits | 100,066 | 4 | 100,062 | N/M | ||||||||||||||||||||||
Total Deposits | $ | 4,450,963 | $ | 3,977,478 | $ | 473,485 | 11.9 | % |
(Dollars in thousands) | Over $250,000 | |||||||
Maturity | ||||||||
3 months or less | $ | 14,693 | ||||||
Over 3 through 6 months | 26,206 | |||||||
Over 6 through 12 months | 20,650 | |||||||
Over 12 months | 2,015 | |||||||
$ | 63,564 |
Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Weighted Avg Rates | % of Total | Average Balance | Weighted Avg Rates | % of Total | ||||||||||||||||||||||||||||||||
Interest bearing demand | $ | 731,747 | 0.47 | % | 18 | % | $ | 836,309 | 0.28 | % | 21 | % | ||||||||||||||||||||||||||
Individual retirement accounts | 51,433 | 1.27 | % | 1 | % | 65,182 | 0.53 | % | 2 | % | ||||||||||||||||||||||||||||
Money market | 569,596 | 2.80 | % | 14 | % | 498,083 | 0.92 | % | 12 | % | ||||||||||||||||||||||||||||
Savings | 533,695 | 1.00 | % | 13 | % | 544,939 | 0.23 | % | 13 | % | ||||||||||||||||||||||||||||
Certificates of deposit | 263,561 | 2.84 | % | 6 | % | 299,104 | 0.85 | % | 7 | % | ||||||||||||||||||||||||||||
Brokered time deposits | 284,518 | 5.29 | % | 7 | % | 99,226 | 1.94 | % | 2 | % | ||||||||||||||||||||||||||||
Other brokered deposits | 17,860 | 5.40 | % | — | % | 278 | 4.38 | % | — | % | ||||||||||||||||||||||||||||
Total interest bearing deposits | 2,452,410 | 1.99 | % | 59 | % | 2,343,121 | 0.55 | % | 57 | % | ||||||||||||||||||||||||||||
Noninterest bearing demand | 1,724,532 | — | 41 | % | 1,704,778 | — | 43 | % | ||||||||||||||||||||||||||||||
Total deposits | $ | 4,176,942 | 1.17 | % | 100 | % | $ | 4,047,899 | 0.32 | % | 100 | % | ||||||||||||||||||||||||||
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Amount outstanding at end of period | $ | — | $ | — | ||||||||||
Weighted average interest rate at end of period | — | % | — | % | ||||||||||
Average daily balance during the period | $ | — | $ | 723 | ||||||||||
Weighted average interest rate during the period | — | % | 0.03 | % | ||||||||||
Maximum month-end balance during the period | $ | — | $ | 3,208 |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Amount outstanding at end of period | $ | 30,000 | $ | 255,000 | ||||||||||
Weighted average interest rate at end of period | 5.51 | % | 5.65 | % | ||||||||||
Average amount outstanding during the period | 98,407 | 194,795 | ||||||||||||
Weighted average interest rate during the period | 5.53 | % | 5.30 | % | ||||||||||
Highest month end balance during the period | 230,000 | 530,000 |
(Dollars in thousands) | Face Value | Carrying Value | Maturity Date | Current Interest Rate | First Repricing Date | Variable Interest Rate at Repricing Date | Initial Issuance Costs | |||||||||||||||||||||||||||||||||||||
Subordinated Notes issued November 27, 2019 | $ | 39,500 | $ | 39,264 | 2029 | 4.875% | 11/27/2024 | Three Month LIBOR plus 3.330% | $ | 1,218 | ||||||||||||||||||||||||||||||||||
Subordinated Notes issued August 26, 2021 | 70,000 | 69,543 | 2031 | 3.500% | 9/01/2026 | Three Month SOFR plus 2.860% | $ | 1,776 | ||||||||||||||||||||||||||||||||||||
$ | 109,500 | $ | 108,807 |
(Dollars in thousands) | Face Value | Carrying Value | Maturity Date | Interest Rate | ||||||||||||||||||||||
National Bancshares Capital Trust II | $ | 15,464 | $ | 13,669 | September 2033 | Three Month SOFR + 3.26% | ||||||||||||||||||||
National Bancshares Capital Trust III | 17,526 | 13,699 | July 2036 | Three Month SOFR + 1.64% | ||||||||||||||||||||||
ColoEast Capital Trust I | 5,155 | 3,858 | September 2035 | Three Month SOFR + 1.86% | ||||||||||||||||||||||
ColoEast Capital Trust II | 6,700 | 4,981 | March 2037 | Three Month SOFR + 2.05% | ||||||||||||||||||||||
Valley Bancorp Statutory Trust I | 3,093 | 2,925 | September 2032 | Three Month SOFR + 3.66% | ||||||||||||||||||||||
Valley Bancorp Statutory Trust II | 3,093 | 2,757 | July 2034 | Three Month SOFR + 3.01% | ||||||||||||||||||||||
$ | 51,031 | $ | 41,889 |
Payments Due by Period - March 31, 2024 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Total | One Year or Less | After One but within Three Years | After Three but within Five Years | After Five Years | |||||||||||||||||||||||||||
Federal Home Loan Bank advances | $ | 30,000 | $ | — | $ | — | $ | 30,000 | $ | — | ||||||||||||||||||||||
Subordinated notes | 109,500 | — | — | — | 109,500 | |||||||||||||||||||||||||||
Junior subordinated debentures | 51,031 | — | — | — | 51,031 | |||||||||||||||||||||||||||
Operating lease agreements | 35,650 | 6,658 | 11,782 | 8,918 | 8,292 | |||||||||||||||||||||||||||
Time deposits with stated maturity dates | 709,989 | 675,513 | 29,402 | 5,074 | — | |||||||||||||||||||||||||||
Total contractual obligations | $ | 936,170 | $ | 682,171 | $ | 41,184 | $ | 43,992 | $ | 168,823 |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
Following 12 Months | Months 13-24 | Following 12 Months | Months 13-24 | |||||||||||||||||||||||
+400 basis points | 15.8 | % | 17.7 | % | 17.0 | % | 19.2 | % | ||||||||||||||||||
+300 basis points | 11.8 | % | 13.2 | % | 12.8 | % | 14.3 | % | ||||||||||||||||||
+200 basis points | 7.9 | % | 8.7 | % | 8.5 | % | 9.5 | % | ||||||||||||||||||
+100 basis points | 3.9 | % | 4.3 | % | 4.3 | % | 4.8 | % | ||||||||||||||||||
Flat rates | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||
-100 basis points | (4.9 | %) | (5.8 | %) | (4.7 | %) | (5.7 | %) | ||||||||||||||||||
-200 basis points | (9.8 | %) | (11.6 | %) | (9.4 | %) | (11.4 | %) | ||||||||||||||||||
-300 basis points | (15.0 | %) | (18.0 | %) | (14.3 | %) | (17.7 | %) | ||||||||||||||||||
-400 basis points | (20.0 | %) | (24.2 | %) | (18.0 | %) | (22.7 | %) |
Economic Value of Equity at Risk (%) | ||||||||||||||
March 31, 2024 | December 31, 2023 | |||||||||||||
+400 basis points | 17.2 | % | 18.3 | % | ||||||||||
+300 basis points | 13.9 | % | 14.6 | % | ||||||||||
+200 basis points | 10.2 | % | 10.5 | % | ||||||||||
+100 basis points | 5.7 | % | 5.9 | % | ||||||||||
Flat rates | 0.0 | % | 0.0 | % | ||||||||||
-100 basis points | (6.7 | %) | (6.7 | %) | ||||||||||
-200 basis points | (13.8 | %) | (13.9 | %) | ||||||||||
-300 basis points | (21.3 | %) | (21.5 | %) | ||||||||||
-400 basis points | (28.8 | %) | (28.8 | %) |
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
3.6 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). | |||||||
* Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished to the Securities and Exchange Commission upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished. |
TRIUMPH FINANCIAL INC. | ||||||||
(Registrant) | ||||||||
Date: | April 17, 2024 | /s/ Aaron P. Graft | ||||||
Aaron P. Graft President and Chief Executive Officer | ||||||||
Date: | April 17, 2024 | /s/ W. Bradley Voss | ||||||
W. Bradley Voss Chief Financial Officer |
April 17, 2024 | |||||||||||
By: | /s/ Aaron P. Graft | ||||||||||
Name: | Aaron P. Graft | ||||||||||
Title: | President and Chief Executive Officer |
April 17, 2024 | |||||||||||
By: | /s/ W. Bradley Voss | ||||||||||
Name: | W. Bradley Voss | ||||||||||
Title: | Executive Vice President and Chief Financial Officer |
By: | /s/ Aaron P. Graft | ||||||||||
Name: | Aaron P. Graft | ||||||||||
Title: | President and Chief Executive Officer | ||||||||||
Date: | April 17, 2024 | ||||||||||
By: | /s/ W. Bradley Voss | ||||||||||
Name: | W. Bradley Voss | ||||||||||
Title: | Executive Vice President and Chief Financial Officer | ||||||||||
Date: | April 17, 2024 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Statement of Financial Position [Abstract] | ||||
Securities - held to maturity, allowance for credit losses | $ 3,135 | $ 3,190 | $ 2,585 | $ 2,444 |
Securities - held to maturity, fair value | 3,750 | 4,015 | ||
Allowance for credit losses, loans | $ 38,232 | $ 35,219 | ||
Common stock, outstanding (in shares) | 23,334,997 | 23,302,414 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 4,158 | $ 11,010 |
Unrealized gains (losses) on securities: | ||
Unrealized holding gains (losses) arising during the period | (210) | 1,748 |
Tax effect | 3 | (372) |
Unrealized holding gains (losses) arising during the period, net of taxes | (207) | 1,376 |
Reclassification of amount realized through sale or call of securities | 0 | 0 |
Tax effect | 0 | 0 |
Reclassification of amount realized through sale or call of securities, net of taxes | 0 | 0 |
Change in unrealized gains (losses) on securities, net of tax | (207) | 1,376 |
Total other comprehensive income (loss) | (207) | 1,376 |
Comprehensive income | $ 3,951 | $ 12,386 |
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Triumph Financial, Inc. (collectively with its subsidiaries, “Triumph Financial”, or the “Company” as applicable) is a financial holding company headquartered in Dallas, Texas, offering a diversified line of payments, factoring and banking services. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Triumph CRA Holdings, LLC (“TCRA”), TBK Bank, SSB (“TBK Bank”), TBK Bank’s wholly owned factoring subsidiary Triumph Financial Services LLC ("Triumph Financial Services"), and TBK Bank’s wholly owned subsidiary Triumph Insurance Group, Inc. (“TIG”). TriumphPay operates as a division of TBK Bank, SSB. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary for a fair presentation. Transactions between the subsidiaries have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. Operating Segments The Company’s reportable segments are comprised of strategic business units primarily based upon industry categories and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing. Segment determination also considers organizational structure and is consistent with the presentation of financial information to the chief operating decision maker to evaluate segment performance, develop strategy, and allocate resources. The Company's chief operating decision maker is the Chief Executive Officer of Triumph Financial, Inc. Management has determined that the Company has four reportable segments consisting of Banking, Factoring, Payments, and Corporate. The Banking segment includes the operations of TBK Bank. The Banking segment derives its revenue principally from investments in interest-earning assets as well as noninterest income typical for the banking industry. The Factoring segment includes the operations of Triumph Financial Services with revenue derived from factoring services. The Payments segment includes the operations of the TBK Bank's TriumphPay division, which is the payments network for presentment, audit, and payment of over-the-road trucking invoices. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of (i) invoices where we offer a carrier a quickpay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us, (ii) offering freight brokers the ability to settle their invoices with us on an extended term following our payment to their carriers as an additional liquidity option for such freight brokers, and (iii) factoring transactions where we purchase receivables payable to such freight brokers from their shipper clients. The Corporate segment includes holding company financing and investment activities as well as management and administrative expenses that support the overall operations of the Company such as human resources, accounting, finance, risk management and information technology expense. For further discussion of management's operating segments and allocation methodology, see Note 14 – Business Segment Information. Adoption of New Accounting Standards In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, "Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings ("TDRs") in ASC 310-40, "Receivables - Troubled Debt Restructurings by Creditors" for entities that have adopted the current expected credit loss ("CECL") model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13"). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, "Financial Instruments—Credit Losses—Measured at Amortized Cost". The Company adopted ASU 2022-02 effective January 1, 2023 on a prospective basis. Adoption of ASU 2022-02 did not have a material impact on the Company's consolidated financial statements. Newly Issued, But Not Yet Effective Accounting Standards In December 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 Requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity’s chief operating decision maker ("CODM") and an explanation of how the CODM uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis. ASU 2023-07 also clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements and that an entity is permitted to disclose multiple measures of segment profit or loss, provided that certain criteria are met. ASU 2023-07 is effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update its segment related disclosures upon adoption. In December 2023, the FASB issued Accounting Standards Update 2023-09, “Income Taxes (Topic 740), Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2024 with early adoption permitted. The Company will update its income tax disclosures upon adoption.
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Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | SECURITIES Equity Securities With Readily Determinable Fair Values The Company held equity securities with readily determinable fair values of $4,441,000 and $4,488,000 at March 31, 2024 and December 31, 2023, respectively. The gross realized and unrealized gains and losses recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:
Equity Securities Without Readily Determinable Fair Values The following table summarizes the Company's investments in equity securities without readily determinable fair values:
Equity securities without readily determinable fair values include Federal Home Loan Bank and other restricted stock, which are reported separately in the Company's consolidated balance sheets. Equity securities without readily determinable fair values also include the Company's investments in the common stock of Trax Group, Inc. and Warehouse Solutions Inc., with carrying amounts of $9,700,000 and $38,088,000, respectively, at March 31, 2024. Both investments have been allocated to our Payments segment and are included in other assets in the Company's consolidated balance sheets. There were no realized or unrealized gains or losses recognized on equity securities without readily determinable fair values during the three months ended March 31, 2024 and 2023. Management monitors its equity securities without readily determinable fair values for observable transactions in similar equity instruments as well as indicators of impairment either of which would require it to mark such equity securities to fair value. No such transactions or indicators of impairment were detected during the three months ended March 31, 2024. Debt Securities Debt securities have been classified in the financial statements as available for sale or held to maturity. The following table summarizes the amortized cost, fair value, and allowance for credit losses of debt securities and the corresponding amounts of gross unrealized gains and losses of available for sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities:
The amortized cost and estimated fair value of securities at March 31, 2024, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
There were no sales of debt securities during the three months ended March 31, 2024 and 2023. Debt securities with a carrying amount of approximately $30,186,000 and $42,445,000 at March 31, 2024 and December 31, 2023, respectively, were pledged to secure public deposits, customer repurchase agreements, and for other purposes required or permitted by law. Accrued interest on available for sale securities totaled $3,641,000 and $3,789,000 at March 31, 2024 and December 31, 2023, respectively, and was included in on the Company's consolidated balance sheets. There was no accrued interest related to debt securities reversed against interest income for the three months ended March 31, 2024 and 2023. The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position:
Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At March 31, 2024, the Company had 98 available for sale debt securities in an unrealized loss position without an allowance for credit losses. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of March 31, 2024, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore the Company carried no allowance for credit losses on available for sale debt securities at March 31, 2024. The following table presents the activity in the allowance for credit losses for held to maturity debt securities:
The Company’s held to maturity securities are investments in the unrated subordinated notes of collateralized loan obligation funds. These securities are the junior-most in securitization capital structures, and are subject to suspension of distributions if the credit of the underlying loan portfolios deteriorates materially. The ACL on held to maturity securities is estimated at each measurement date on a collective basis by major security type. At March 31, 2024 and December 31, 2023, the Company’s held to maturity securities consisted of three investments in the subordinated notes of collateralized loan obligation (“CLO”) funds. Expected credit losses for these securities are estimated using a discounted cash flow methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Ultimately, the realized cash flows on CLO securities such as these will be driven by a variety of factors, including credit performance of the underlying loan portfolio, adjustments to the portfolio by the asset manager, and the timing of a potential call. At March 31, 2024, $4,766,000 of the Company’s held to maturity securities were classified as nonaccrual.
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Loans and Allowance for Credit Losses |
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Loans and Allowance for Credit Losses | LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans Held for Sale The following table presents loans held for sale:
Loans Held for Investment Loans The following table presents the amortized cost and unpaid principal balance of loans held for investment:
The difference between the amortized cost and the unpaid principal is due to (1) premiums and discounts associated with acquired loans totaling $5,995,000 and $6,861,000 at March 31, 2024 and December 31, 2023, respectively, and (2) net deferred origination and factoring fees totaling $4,270,000 and $3,657,000 at March 31, 2024 and December 31, 2023, respectively. Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $30,378,000 and $30,686,000 at March 31, 2024 and December 31, 2023, respectively, and was included in other assets on the Company's consolidated balance sheets. At March 31, 2024 and December 31, 2023, the Company had $211,198,000 and $253,492,000, respectively, of customer reserves associated with factored receivables. These amounts represent customer reserves held to settle any payment disputes or collection shortfalls, may be used to pay customers’ obligations to various third parties as directed by the customer, are periodically released to or withdrawn by customers, and are reported as deposits in the consolidated balance sheets. At March 31, 2024 and December 31, 2023 the balance of the Over-Formula Advance Portfolio, acquired from Transport Financial Solutions during 2020, included in factored receivables was $2,720,000 and $3,151,000, respectively. These balances were fully reserved as of those respective dates. At March 31, 2024 the Company carried a separate $19,361,000 receivable (the “Misdirected Payments”) payable by the United States Postal Service (“USPS”) arising from accounts factored to the largest Over-Formula Advance Portfolio carrier. This amount is separate from the acquired Over-Formula Advances. The amounts represented by this receivable were paid by the USPS directly to such customer in contravention of notices of assignment delivered to, and previously honored by, the USPS, which amount was then not remitted back to us by such customer as required. The USPS disputes their obligation to make such payment, citing purported deficiencies in the notices delivered to them. We are a party to litigation in the United States Court of Federal Claims against the USPS seeking a ruling that the USPS was obligated to make the payments represented by this receivable directly to us. Based on our legal analysis and discussions with our counsel advising us on this matter, we continue to believe it is probable that we will prevail in such action and that the USPS will have the capacity to make payment on such receivable. Consequently, we have not reserved for such balance as of March 31, 2024. Loans with carrying amounts of $1,412,353,000 and $1,588,532,000 at March 31, 2024 and December 31, 2023, respectively, were pledged to secure Federal Home Loan Bank borrowing capacity and Federal Reserve Bank discount window borrowing capacity. Allowance for Credit Losses The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications. The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows:
The increase in required ACL during the three months ended March 31, 2024 is a function of net charge-offs of $1,896,000 and credit loss expense of $4,909,000. The Company uses the discounted cash flow (DCF) method to estimate ACL for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit and PPP), and consumer loan pools. For all loan pools utilizing the DCF method, the Company utilizes and forecasts national unemployment as a loss driver. The Company also utilizes and forecasts either one-year percentage change in national retail sales (commercial real estate – non multifamily, commercial general, commercial agriculture, commercial asset-based lending, commercial equipment finance, consumer), one-year percentage change in the national home price index (1-4 family residential and construction, land development, land), or one-year percentage change in national gross domestic product (commercial real estate – multifamily) as a second loss driver depending on the nature of the underlying loan pool and how well that loss driver correlates to expected future losses. Consistent forecasts of the loss drivers are used across the loan segments. The Company also forecasts prepayments speeds for use in the DCF models with higher prepayment speeds resulting in lower required ACL levels and vice versa for shorter prepayment speeds. These assumed prepayment speeds are based upon our historical prepayment speeds by loan type adjusted for the expected impact of the future interest rate environment. The impact of these assumed prepayment speeds is lesser in magnitude than the aforementioned loss driver assumptions. For all DCF models at March 31, 2024, the Company has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. The Company leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by the Company when developing the forecast metrics. At March 31, 2024 as compared to December 31, 2023, the Company forecasted minimal change in national unemployment, one-year percentage change in national retail sales, one-year percentage change in the national home price index, and one-year percentage change in national gross domestic product. At March 31, 2024 for national unemployment, the Company projected a low percentage in the first quarter followed by a gradual rise in the following three quarters. For percentage change in national retail sales, the Company projected a small increase in the first projected quarter followed by a decline to negative levels over the last three projected quarters to a level below recent actual periods. For percentage change in national home price index, the Company projected an increase in the first projected quarter followed by a steep drop to negative levels for the remaining three quarters with such negative levels peaking in the fourth projected quarter. For percentage change in national gross domestic product, management projected low-to-near-zero growth for each projected quarter with the exception of positive growth in the first projected quarter. At March 31, 2023, the Company used its historical prepayment speeds with minimal adjustment. The Company uses a loss-rate method to estimate expected credit losses for the farmland, liquid credit, factored receivable, and mortgage warehouse loan pools. For each of these loan segments, the Company applies an expected loss ratio based on internal and peer historical losses adjusted as appropriate for qualitative factors. Qualitative loss factors are based on the Company's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. Loss factors used to calculate the required ACL on pools that use the loss-rate method reflect the forecasted economic conditions described above. For the three months ended March 31, 2024, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $904,000. Changes in loan volume and mix increased the required ACL by $765,000. Increases in required specific reserves increased the required ACL by $1,345,000. Net charge-offs during the period were $1,896,000. For the three months ended March 31, 2023, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $383,000. Decreases in required specific reserves decreased the required ACL at March 31, 2023 by $911,000. Changes in loan volume and mix during the three months ended March 31, 2023 did not have a material impact on the ACL during the period. Net charge-offs during the period were $2,215,000. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:
Commercial loans secured by Other collateral primarily consist of large liquid credit loans secured by the underlying enterprise values of the borrowers. At March 31, 2024 the balance of the Over-Formula Advance Portfolio included in factored receivables was $2,720,000 and was fully reserved. At March 31, 2024 the balance of Misdirected Payments included in factored receivables was $19,361,000 and carried no ACL allocation.
At December 31, 2023 the balance of the Over-Formula Advance Portfolio included in factored receivables was $3,151,000 and carried an ACL allocation of $3,151,000. At December 31, 2023 the balance of Misdirected Payments included in factored receivables was $19,361,000 and carried no ACL allocation. Past Due and Nonaccrual Loans The following tables present an aging of contractually past due loans:
At March 31, 2024 and December 31, 2023, total past due Over-Formula Advances recorded in factored receivables was $2,720,000 and $3,151,000, respectively, all of which was considered past due 90 days or more. At March 31, 2024 and December 31, 2023, the Misdirected Payments totaled $19,361,000, all of which was considered past due 90 days or more. Given the nature of factored receivables, these assets are disclosed as past due 90 days or more still accruing; however, the Company is not recognizing income on the assets. Historically, any income recognized on factored receivables that are past due 90 days or more has not been material. The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses:
The following table presents accrued interest on nonaccrual loans reversed through interest income:
There was no interest earned on nonaccrual loans during the three months ended March 31, 2024 and 2023. The following table presents information regarding nonperforming loans:
Credit Quality Information The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including: current collateral and financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk on a regular basis. Large groups of smaller balance homogeneous loans, such as consumer loans, are analyzed primarily based on payment status. The Company uses the following definitions for risk ratings: Pass – Pass rated loans have low to average risk and are not otherwise classified. Classified – Classified loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Certain classified loans have the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. As of March 31, 2024 and December 31, 2023, based on the most recent analysis performed, the risk category of loans is as follows:
Loan Modifications to Borrowers Experiencing Financial Difficulty The following tables present the amortized cost basis of loan modifications to borrowers experiencing financial difficulty made during the reporting period:
The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty:
Generally, if a loan to a borrower experiencing financial difficulty is modified, the Company will seek to obtain credit enhancements when possible. The following table presents the payment status of loans that have been modified in the last twelve months:
At March 31, 2024, the Company had no commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company modified the terms of the loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension during the current period. There were no loans to borrowers experiencing financial difficulty that had a payment default during the three months ended March 31, 2024 and 2023 and were modified in the twelve months prior to that default. Default is determined at 90 or more days past due, upon charge-off, or upon foreclosure. Modified loans in default are individually evaluated for the allowance for credit losses or if the modified loan is deemed uncollectible, the loan, or a portion of the loan, is written off and the allowance for credit losses is adjusted accordingly. Residential Real Estate Loans In Process of Foreclosure At March 31, 2024 and December 31, 2023, the Company had no 1-4 family residential real estate loans for which formal foreclosure proceedings were in process.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets consist of the following:
The changes in goodwill and intangible assets during the three months ended March 31, 2024 and 2023 are as follows:
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Variable Interest Entities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | VARIABLE INTEREST ENTITIES Collateralized Loan Obligation Funds – Closed The Company holds investments in the subordinated notes of the following closed Collateralized Loan Obligation (“CLO”) funds:
The net carrying amounts of the Company’s investments in the subordinated notes of the CLO funds, which represent the Company’s maximum exposure to loss as a result of its involvement with the CLO funds, totaled $3,010,000 and $2,977,000 at March 31, 2024 and December 31, 2023, respectively, and are classified as held to maturity securities within the Company’s consolidated balance sheets. The Company performed a consolidation analysis to confirm whether the Company was required to consolidate the assets, liabilities, equity or operations of the closed CLO funds in its financial statements. The Company concluded that the closed CLO funds were variable interest entities and that the Company holds variable interests in the entities in the form of its investments in the subordinated notes of entities. However, the Company also concluded that the Company does not have the power to direct the activities that most significantly impact the entities’ economic performance. As a result, the Company was not the primary beneficiary and therefore was not required to consolidate the assets, liabilities, equity, or operations of the closed CLO funds in the Company’s financial statements.
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Legal Contingencies |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | LEGAL CONTINGENCIES The Company, through its direct and indirect wholly owned subsidiaries, has purchased and received payments on accounts receivable payable to Surge Transportation, Inc. (‘Surge’), a licensed freight broker, as part of factoring services provided to such entity. On July 24, 2023, Surge filed for Chapter 11 Bankruptcy in the US Bankruptcy Court in the Middle District of Florida. In connection with the bankruptcy proceedings, certain claimants comprised of motor carriers, contingency collection agents, and factoring companies filed complaints alleging that such entities have an ownership interest in, or other rights to, amounts paid to the Company in respect of such purchased accounts receivable. The Court has not yet ruled on such complaints. In the event of an adverse ruling with respect to such complaints, Triumph may be required to disgorge or pay to such claimants all or a portion of the amounts it has collected on such receivables. The Company and litigants are finalizing conditional settlements of all claims in conjunction with a Plan of Reorganization which was filed by Surge on March 29, 2024. The Plan is not yet confirmed. Due to the uncertainty of the existence of or extent of any loss exposure, Triumph is unable to calculate any reserve loss at this time. Additionally, other various legal claims have arisen from time to time in the normal course of business which, in the opinion of management as of March 31, 2024, will have no material effect on the Company’s consolidated financial statements.
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Off-Balance Sheet Loan Commitments |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Off-Balance Sheet Loan Commitments | OFF-BALANCE SHEET LOAN COMMITMENTS From time to time, the Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments. The contractual amounts of financial instruments with off-balance sheet risk were as follows:
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed above do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if considered necessary by the Company, upon extension of credit, is based on management’s credit evaluation of the customer. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer, the Company has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. The credit risk to the Company in issuing letters of credit is essentially the same as that involved in extending loan facilities to its customers. Commitments to purchase loans represent loans purchased by the Company that have not yet settled. Mortgage warehouse commitments are unconditionally cancellable and represent the unused capacity on mortgage warehouse facilities the Company has approved. The Company reserves the right to refuse to buy any mortgage loans offered for sale by a customer, for any reason, at the Company’s sole and absolute discretion. The Company records an allowance for credit losses on off-balance sheet credit exposures through a charge to credit loss expense on the Company’s consolidated statements of income. At March 31, 2024 and December 31, 2023, the allowance for credit losses on off-balance sheet credit exposures totaled $3,880,000 and $2,838,000, respectively, and was included in other liabilities on the Company’s consolidated balance sheets. The following table presents credit loss expense for off balance sheet credit exposures:
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Fair Value Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | FAIR VALUE DISCLOSURES Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The methods of determining the fair value of assets and liabilities presented in this note are consistent with the methodologies disclosed in Note 16 of the Company’s 2023 Form 10-K. Assets and liabilities measured at fair value on a recurring basis are summarized in the table below.
There were no transfers between levels during 2024 or 2023. Indemnification Asset The fair value of the indemnification asset is calculated as the present value of the estimated cash payments expected to be received from Covenant for probable losses on the covered Over-Formula Advance Portfolio acquired during 2020. The cash flows are discounted at a rate to reflect the uncertainty of the timing and receipt of the payments from Covenant. The indemnification asset is reviewed quarterly and changes to the asset are recorded as adjustments to other noninterest income or expense, as appropriate, within the Consolidated Statements of Income. The indemnification asset fair value is considered a Level 3 classification. At March 31, 2024 and December 31, 2023, the estimated cash payments expected to be received from Covenant for probable losses on the covered Over-Formula Advance Portfolio were approximately $1,360,000 and $1,575,000, respectively, and a discount rate of 5.0% and 5.0%, respectively, was applied to calculate the present value of the indemnification asset. A reconciliation of the opening balance to the closing balance of the fair value of the indemnification asset is as follows:
Revenue Share Asset On June 30, 2022 and September 6, 2022, the Company entered into and closed two separate agreements to sell two separate portfolios of factored receivables. The June 30, 2022 agreement contains revenue share provisions that entitles the Company to an amount equal to fifteen percent of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. The September 6, 2022 agreement contains revenue share provisions that entitles the Company to an amount ranging from fifteen to twenty percent, depending on the client, of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. The fair value of the revenue share assets is calculated each reporting period, and changes in the fair value of the revenue share assets are recorded in noninterest income in the consolidated statements of income. The revenue share asset fair value is considered a Level 3 classification. At March 31, 2024 and December 31, 2023, the estimated cash payments expected to be received from the purchaser for the Company's share of future gross monthly revenue as $3,590,000 and $3,329,000, respectively, and a discount rate of 10.0% was applied to calculate the present value of the revenue share asset. A reconciliation of the opening balance to the closing balance of the fair value of the revenue share asset is as follows:
Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at March 31, 2024 and December 31, 2023.
Collateral Dependent Loans Specific Allocation of ACL: A loan is considered to be a collateral dependent loan when, based on current information and events, the Company expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Company has determined that the borrower is experiencing financial difficulty as of the measurement date. The ACL is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the underlying fair value of the loan’s collateral. For real estate loans, fair value of the loan’s collateral is determined by third party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 8% of the appraised value. For non-real estate loans, fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at March 31, 2024 and December 31, 2023 were as follows:
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Regulatory Matters |
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Regulatory Matters | REGULATORY MATTERS The Company (on a consolidated basis) and TBK Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s or TBK Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and TBK Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and TBK Bank to maintain minimum amounts and ratios (set forth in the table below) of total, common equity Tier 1, and Tier 1 capital to risk weighted assets, and of Tier 1 capital to average assets. Management believes, as of March 31, 2024 and December 31, 2023, the Company and TBK Bank meet all capital adequacy requirements to which they are subject. As of March 31, 2024 and December 31, 2023, TBK Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” TBK Bank must maintain minimum total risk based, common equity Tier 1 risk based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since March 31, 2024 that management believes have changed TBK Bank’s category. The actual capital amounts and ratios for the Company and TBK Bank are presented in the following table.
As permitted by the interim final rule issued on March 27, 2020 by the federal banking regulatory agencies, the Company elected the option to delay the estimated impact on regulatory capital of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which was effective January 1, 2020. The initial impact of adoption of ASU 2016-13 as well as 25% of the quarterly increases in the allowance for credit losses subsequent to adoption of ASU 2016-13 (collectively the “transition adjustments”) was delayed for two years. After two years, the cumulative amount of the transition adjustments became fixed and will be phased out of the regulatory capital calculations evenly over a three-year period, with 75% recognized in year three, 50% recognized in year four, and 25% recognized in year five. After five years, the temporary regulatory capital benefits will be fully reversed. Dividends paid by TBK Bank are limited to, without prior regulatory approval, current year earnings and earnings less dividends paid during the preceding two years. The capital conservation buffer set forth by the Basel III regulatory capital framework was 2.5% at March 31, 2024 and December 31, 2023. The capital conservation buffer is designed to absorb losses during periods of economic stress and requires increased capital levels for the purpose of capital distributions and other payments. Failure to meet the full amount of the buffer will result in restrictions on the Company’s ability to make capital distributions, including dividend payments and stock repurchases, and to pay discretionary bonuses to executive officers. At March 31, 2024 and December 31, 2023, the Company’s and TBK Bank’s risk based capital exceeded the required capital conservation buffer.
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Stockholders' Equity |
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Stockholders' Equity | STOCKHOLDERS' EQUITY The following summarizes the capital structure of Triumph Financial, Inc. Preferred Stock Series C
Common Stock
Stock Repurchase Programs On February 1, 2023, the Company entered into an accelerated share repurchase (“ASR”) agreement to repurchase $70,000,000 of the Company’s common stock. The ASR is part of the Company’s previously announced plan to repurchase up to $100,000,000 of the Company’s common stock and is within the remaining amount authorized by the Company’s Board of Directors pursuant to such plan. Under the terms of the ASR agreement, the Company received an initial delivery of 961,373 common shares representing approximately 80% of the expected total to be repurchased. On April 28, 2023, the ASR was completed and the Company received an additional delivery of 247,954 common shares. In connection with the completion of the ASR, on May 4, 2023, the Company announced that its board of directors had authorized the Company to repurchase up to an additional $50,000,000 of its outstanding common stock in open market transactions or through privately negotiated transactions at the Company's discretion. The amount, timing and nature of any share repurchases will be based on a variety of factors, including the trading price of the Company's common stock, applicable securities laws restrictions, regulatory limitations and market and economic factors. The repurchase program is authorized for a period of up to one year and does not require the Company to repurchase any specific number of shares. The repurchase program may be modified, suspended or discontinued at any time. The Company has not repurchased any shares under the new share repurchase program.
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Stock Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | STOCK BASED COMPENSATION Stock based compensation expense that has been charged against income was $3,627,000 and $2,881,000 for the three months ended March 31, 2024 and 2023, respectively. 2014 Omnibus Incentive Plan The Company’s 2014 Omnibus Incentive Plan (“Omnibus Incentive Plan”) provides for the grant of nonqualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other awards that may be settled in, or based upon the value of, the Company’s common stock. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 2,900,000 shares. Restricted Stock Awards A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the three months ended March 31, 2024 were as follows:
RSAs granted to employees under the Omnibus Incentive Plan typically vest immediately or over four years. Compensation expense for the RSAs will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. As of March 31, 2024, there was $1,235,000 of unrecognized compensation cost related to the nonvested RSAs. The cost is expected to be recognized over a remaining period of 1.16 years. Restricted Stock Units A summary of changes in the Company’s nonvested Restricted Stock Units (“RSUs”) under the Omnibus Incentive Plan for the three months ended March 31, 2024 were as follows:
RSUs granted to employees under the Omnibus Incentive Plan typically vest over four years. Compensation expense for the RSUs will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. As of March 31, 2024, there was $6,096,000 of unrecognized compensation cost related to the nonvested RSUs. The cost is expected to be recognized over a remaining period of 2.60 years. Market Based Performance Stock Units A summary of changes in the Company’s nonvested Market Based Performance Stock Units (“Market Based PSUs”) under the Omnibus Incentive Plan for the three months ended March 31, 2024 were as follows:
Market Based PSUs granted to employees under the Omnibus Incentive Plan vest after three years. The number of shares issued upon vesting will range from 0% to 175% of the Market Based PSUs granted based on the Company’s relative total shareholder return (“TSR”) as compared to the TSR of specified groups of peer banks and financial technology companies, and with respect to the Company's 2023 awards may include an additional multiplier of up to 200% of the otherwise earned award based on the Company's absolute TSR. Compensation expense for the Market Based PSUs will be recognized over the vesting period of the awards based on the fair value of the award at the grant date. The fair value of Market Based PSUs granted is estimated using a Monte Carlo simulation. Expected volatilities were determined based on the historical volatilities of the Company and the specified peer group. The risk-free interest rate for the performance period was derived from the Treasury constant maturities yield curve on the valuation dates. As of March 31, 2024, there was $4,979,000 of unrecognized compensation cost related to the nonvested Market Based PSUs. The cost is expected to be recognized over a remaining period of 1.97 years. Stock Options A summary of the changes in the Company’s stock options under the Omnibus Incentive Plan for the three months ended March 31, 2024 were as follows:
Information related to the stock options for the three months ended March 31, 2024 and 2023 was as follows:
Stock options awarded to employees under the Omnibus Incentive Plan are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant, vest over four years, and have ten year contractual terms. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. Expected volatilities are determined based on the Company’s historical volatility. The expected term of the options granted is determined based on the SEC simplified method, which calculates the expected term as the mid-point between the weighted average time to vesting and the contractual term. The risk-free interest rate for the expected term of the options is derived from the Treasury constant maturity yield curve on the valuation date. As of March 31, 2024, there was $936,000 of unrecognized compensation cost related to nonvested stock options granted under the Omnibus Incentive Plan. The cost is expected to be recognized over a remaining period of 2.76 years. Employee Stock Purchase Plan During the year ended December 31, 2019, the Company’s Board of Directors adopted, and the Company’s stockholders approved, the Company's 2019 Employee Stock Purchase Plan (“ESPP”). Under the ESPP, 2,500,000 shares of common stock were reserved for issuance. The ESPP enables eligible employees to purchase the Company’s common stock at a price per share equal to 85% of the lower of the fair market value of the common stock at the beginning or end of each six month offering period. During the three months ended March 31, 2024 and 2023, 18,328 shares and 21,057 shares, respectively, were issued under the plan.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE The factors used in the earnings per share computation follow:
Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows:
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Revenue From Contracts With Customers |
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Revenue From Contracts With Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices can be fixed or variable; charged either on a periodic basis or based on activity. Except as disclosed below, the Company presents disaggregated revenue from contracts with customers in the consolidated statements of income. Banking and Factoring Segments The Banking segment derives its revenue principally from investments in interest-earning assets as well as noninterest income typical for the banking industry, and the Factoring segment derives the large majority of its revenue from interest income on purchased factored receivables. The majority of such revenue streams fall under Accounting Standards Codification Topic 310, “Receivables” (“Topic 310”) which is outside the scope of Topic 606. There are, however, certain Banking and Factoring activities that generate revenue under Topic 606. Descriptions of the Company's significant Banking and Factoring revenue-generating activities within the scope of Topic 606, which are included in non-interest income in the Company's consolidated statements of income, are as follows: •Service charges on deposits. Service charges on deposits primarily consists of fees from the Company's deposit customers for account maintenance, account analysis, and overdraft services. Account maintenance fees and analysis fees are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. •Card income. Card income primarily consists of interchange fees. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized when the transaction processing services are provided to the cardholder. •Net OREO gains (losses) and valuation adjustments. The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. •Fee income. Fee income for the Banking and Factoring segments primarily consists of transaction-based fees, including wire transfer fees, ACH and check fees, early termination fees, and other fees, earned from the Company's banking and factoring customers. Transaction based fees are recognized at the time the transaction is executed as that is the point in time the Company satisfies its performance obligations. •Insurance commissions. Insurance commissions are earned for brokering insurance policies. The Company's primary performance obligations for insurance commissions are satisfied and revenue is recognized when the brokered insurance policies are executed. Payments Segment The Payments segment derives a portion of its revenue from interest income on factored receivables and commercial loans related to invoice payments. These factored receivables consist of (i) invoices where we offer a Carrier a quick pay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and (ii) factoring transactions where we purchase receivables payable to such freight brokers from their shipper clients. The Payments segment also offers commercial loans that result from our offering certain Brokers an additional liquidity option through the ability to settle their invoices with us on an extended term following our payment to their Carriers. The balance of such commercial loans was $0 at March 31, 2024 and December 31, 2023. Such revenue falls under Topic 310 and is outside the scope of Topic 606. The Payments segment under its brand name, TriumphPay, connects Brokers, Shippers, Factors and Carriers through forward-thinking solutions that help each party successfully manage the life cycle of invoice presentment for services provided by Carrier through TriumphPay’s processing and audit of such invoice to its ultimate payment to the Carrier or the Factor. The Payments segment earns transaction revenue for such services from fees paid by its customers to receive auditing and payment processing of their invoices. Transaction revenue is recorded in Fee Income on the Consolidated Statements of Income and is subject to Topic 606. Transaction fees can be variable in nature. When such fees are variable, they are typically based upon the number of audit and payment transactions executed during a stated period; generally a calendar month. The customer is charged either a set fee per transaction or a set minimum fee for a stated number of transactions with the variable component being a per-invoice amount for transactions exceeding the stated minimum number. When applicable, the stated minimum number of transactions typically resets on a monthly basis. Transaction volume and related variable fees are known and recognized at each reporting period. Transaction fees can also be fixed in nature with such fees reflecting a set annual amount that is recognized ratably over the terms of the related contracts. In both variable and fixed arrangements, customers are typically billed monthly in arrears with payment due on 30 day terms and as such, no revenue is deferred. The Payments segment also earns network fees for providing its customers access to the TriumphPay network. Network fees are recorded in Fee Income on the Consolidated Statements of Income and are subject to Topic 606. Network fees are generally a fixed annual amount and are recognized ratably over the terms of the related contracts. Customers are typically billed monthly in arrears with payment due on 30 day terms and as such, no revenue is deferred. The Payments segment's service comprises a single performance obligation to provide stand-ready access to its payments and audit platforms for its customers which is satisfied over time as services are rendered. Given the nature of its services and related revenue, no significant judgments are made in applying Topic 606 and there are no refund, warranty, or similar obligations. The Payments segment's contracts with its customers are usually short-term in nature and can generally be terminated by either party without a termination penalty or refund after the notice period has lapsed. Therefore, the contracts are defined at the transaction level and do not extend beyond the service already provided. The contracts generally renew automatically without any significant material rights. Some of the contracts include tiered pricing, which is based primarily on volume. The fee charged per transaction is adjusted up or down based on the volume processed for a specified period. Management has concluded that this volume-based pricing approach does not constitute a future material right since changes in the fee ranges are typically offered to classes of customers with similar volume. The Payments segment recognizes fees charged to its customers on a gross basis as transaction revenue as it is the principal in respect of completing Payments segment transactions. As a principal to the transaction, the Payments segment controls the services on its platforms. The Payments segment bears primary responsibility for the fulfillment of the services, contracts directly with its customers, controls the product specifications, and defines the value proposal from its services. Further, the Payments segment has full discretion in determining the fee charged to its customers. The Payments segment is also responsible for providing customer support. Capitalized contract costs consist of (i) deferred sales commissions that are incremental costs of obtaining customer contracts and (ii) deferred set-up costs, primarily direct payroll costs, for implementation services provided to customers prior to the launching of the Company’s products for general availability (go-live) to customers. Deferred sales commissions are amortized ratably over two years, taking into consideration the initial contract term, expected renewal periods, and sales commissions paid on such renewal periods. Deferred set-up costs are amortized ratably over four years which estimates the benefit period of the capitalized costs starting on the go-live date of the service. Deferred sales commissions and deferred set-up costs were included in other assets in the accompanying consolidated balance sheets and were $338,000 and $800,000, respectively, at March 31, 2024 and $394,000 and $505,000, respectively, at December 31, 2023. The amortization of deferred sales commissions and deferred set-up costs is included in salaries and employee benefits in the consolidated statements of income and was not significant for the three months ended March 31, 2024 and 2023. Given the nature of services provided, the Payments segment does not carry any material contract balances. The table below shows the Payments segment’s revenue from transaction and network fees from external customers, which are disaggregated by customer category.
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Business Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | BUSINESS SEGMENT INFORMATION The Company's reportable segments are Banking, Factoring, Payments, and Corporate, which have been determined based upon their business processes and economic characteristics. This determination also gave consideration to the structure and management of various product lines. The Banking segment includes the operations of TBK Bank. The Banking segment derives its revenue principally from investments in interest earning assets as well as noninterest income typical for the banking industry. The Factoring segment includes the operations of Triumph Financial Services with revenue derived from factoring services. The Payments segment includes the operations of TBK Bank's TriumphPay division, which provides a presentment, audit, and payment solution to Shipper, Broker, and Factor clients in the trucking industry. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of both invoices where we offer a Carrier a quickpay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and from offering Brokers the ability to settle their invoices with us on an extended term following our payment to their Carriers as an additional liquidity option for such Brokers. Expenses that are directly attributable to the Company's Banking, Factoring, and Payments segments are allocated as such. The Company continues to make considerable investments in shared services that benefit the entire organization and these expenses are allocated to the Corporate segment. The Company allocates such expenses to the Corporate segment in order for the Company's chief operating decision maker and investors to have clear visibility into the operating performance of each reportable segment. The Company allocates intersegment interest expense to the Factoring and Payments segments based on one-month term SOFR for their funding needs. When the Payments segment is self-funded, with customer deposit funding in excess of its factored receivables, intersegment interest income is allocated based on the Federal Funds effective rate. Management believes that such intersegment interest allocations appropriately reflect the current interest rate environment. Reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Changes in management structure or allocation methodologies and procedures may result in future changes to previously reported segment financial data. The accounting policies of the segments are substantially the same as those described in the “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2023 Form 10-K. Transactions between segments consist primarily of borrowed funds, payment network fees, and servicing fees. Intersegment interest expense is allocated to the Factoring and Payments segments as described above. Payment network fees are paid by the Factoring segment to the Payments segment for use of the payments network. Beginning prospectively on June 1, 2023, factoring transactions with freight broker clients were transferred from our Factoring segment to our Payments segment to align with TriumphPay's supply chain finance product offerings. Servicing fees are paid by the Payments segment to the Factoring segment for servicing such product. Beginning prospectively on January 1, 2024, the Factoring and Payments segments began paying fees to our Banking segment for the Banking segment's execution of various banking services that benefit those segments. Credit loss expense is allocated based on the segment’s ACL determination. Noninterest income and expense directly attributable to a segment are assigned to it with various shared service costs such as human resources, accounting, finance, risk management and information technology expense assigned to the Corporate segment. Taxes are paid on a consolidated basis and are not allocated for segment purposes.
(1) Net intersegment noninterest income (expense) includes:
Total assets and gross loans below include intersegment loans, which eliminate in consolidation.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net income | $ 4,158 | $ 11,010 |
Insider Trading Arrangements - shares |
3 Months Ended | |
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Mar. 31, 2024 |
Sep. 30, 2023 |
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Trading Arrangements, by Individual | ||
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Adam D. Nelson [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On September 6, 2023, Mr. Adam D. Nelson, the Company’s Executive Vice President and General Counsel, adopted a written plan for the exercise and sale of non-qualified stock options to purchase our common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (the “Nelson Trading Plan”). The Nelson Trading Plan covers the exercise and sale of up to 20,160 non-qualified stock options to purchase shares of the Company’s common stock in several transactions over a period commencing after the later of (1) 90 days from the execution of the Nelson Trading Plan and (2) the second trading day following the public disclosure of the Company’s financial results on Form 10-Q for the quarter ended September 30, 2023, and will cease upon the earlier of November 29, 2024 or the sale of all shares subject to the Nelson Trading Plan.
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Name | Adam D. Nelson | |
Title | Executive Vice President and General Counsel | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | September 6, 2023 | |
Arrangement Duration | 450 days | |
Aggregate Available | 20,160 |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Triumph Financial, Inc. (collectively with its subsidiaries, “Triumph Financial”, or the “Company” as applicable) is a financial holding company headquartered in Dallas, Texas, offering a diversified line of payments, factoring and banking services. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Triumph CRA Holdings, LLC (“TCRA”), TBK Bank, SSB (“TBK Bank”), TBK Bank’s wholly owned factoring subsidiary Triumph Financial Services LLC ("Triumph Financial Services"), and TBK Bank’s wholly owned subsidiary Triumph Insurance Group, Inc. (“TIG”). TriumphPay operates as a division of TBK Bank, SSB.
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Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary for a fair presentation. Transactions between the subsidiaries have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
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Operating Segments | Operating Segments The Company’s reportable segments are comprised of strategic business units primarily based upon industry categories and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing. Segment determination also considers organizational structure and is consistent with the presentation of financial information to the chief operating decision maker to evaluate segment performance, develop strategy, and allocate resources. The Company's chief operating decision maker is the Chief Executive Officer of Triumph Financial, Inc. Management has determined that the Company has four reportable segments consisting of Banking, Factoring, Payments, and Corporate. The Banking segment includes the operations of TBK Bank. The Banking segment derives its revenue principally from investments in interest-earning assets as well as noninterest income typical for the banking industry. The Factoring segment includes the operations of Triumph Financial Services with revenue derived from factoring services. The Payments segment includes the operations of the TBK Bank's TriumphPay division, which is the payments network for presentment, audit, and payment of over-the-road trucking invoices. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of (i) invoices where we offer a carrier a quickpay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us, (ii) offering freight brokers the ability to settle their invoices with us on an extended term following our payment to their carriers as an additional liquidity option for such freight brokers, and (iii) factoring transactions where we purchase receivables payable to such freight brokers from their shipper clients. The Corporate segment includes holding company financing and investment activities as well as management and administrative expenses that support the overall operations of the Company such as human resources, accounting, finance, risk management and information technology expense. For further discussion of management's operating segments and allocation methodology, see Note 14 – Business Segment Information. The Company's reportable segments are Banking, Factoring, Payments, and Corporate, which have been determined based upon their business processes and economic characteristics. This determination also gave consideration to the structure and management of various product lines. The Banking segment includes the operations of TBK Bank. The Banking segment derives its revenue principally from investments in interest earning assets as well as noninterest income typical for the banking industry. The Factoring segment includes the operations of Triumph Financial Services with revenue derived from factoring services. The Payments segment includes the operations of TBK Bank's TriumphPay division, which provides a presentment, audit, and payment solution to Shipper, Broker, and Factor clients in the trucking industry. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of both invoices where we offer a Carrier a quickpay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and from offering Brokers the ability to settle their invoices with us on an extended term following our payment to their Carriers as an additional liquidity option for such Brokers. Expenses that are directly attributable to the Company's Banking, Factoring, and Payments segments are allocated as such. The Company continues to make considerable investments in shared services that benefit the entire organization and these expenses are allocated to the Corporate segment. The Company allocates such expenses to the Corporate segment in order for the Company's chief operating decision maker and investors to have clear visibility into the operating performance of each reportable segment. The Company allocates intersegment interest expense to the Factoring and Payments segments based on one-month term SOFR for their funding needs. When the Payments segment is self-funded, with customer deposit funding in excess of its factored receivables, intersegment interest income is allocated based on the Federal Funds effective rate. Management believes that such intersegment interest allocations appropriately reflect the current interest rate environment. Reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Changes in management structure or allocation methodologies and procedures may result in future changes to previously reported segment financial data. The accounting policies of the segments are substantially the same as those described in the “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2023 Form 10-K. Transactions between segments consist primarily of borrowed funds, payment network fees, and servicing fees. Intersegment interest expense is allocated to the Factoring and Payments segments as described above. Payment network fees are paid by the Factoring segment to the Payments segment for use of the payments network. Beginning prospectively on June 1, 2023, factoring transactions with freight broker clients were transferred from our Factoring segment to our Payments segment to align with TriumphPay's supply chain finance product offerings. Servicing fees are paid by the Payments segment to the Factoring segment for servicing such product. Beginning prospectively on January 1, 2024, the Factoring and Payments segments began paying fees to our Banking segment for the Banking segment's execution of various banking services that benefit those segments. Credit loss expense is allocated based on the segment’s ACL determination. Noninterest income and expense directly attributable to a segment are assigned to it with various shared service costs such as human resources, accounting, finance, risk management and information technology expense assigned to the Corporate segment. Taxes are paid on a consolidated basis and are not allocated for segment purposes.
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Adoption of New Accounting Standards and Newly Issued, But Not Yet Effective Accounting Standards | Adoption of New Accounting Standards In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, "Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings ("TDRs") in ASC 310-40, "Receivables - Troubled Debt Restructurings by Creditors" for entities that have adopted the current expected credit loss ("CECL") model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13"). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, "Financial Instruments—Credit Losses—Measured at Amortized Cost". The Company adopted ASU 2022-02 effective January 1, 2023 on a prospective basis. Adoption of ASU 2022-02 did not have a material impact on the Company's consolidated financial statements. Newly Issued, But Not Yet Effective Accounting Standards In December 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 Requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity’s chief operating decision maker ("CODM") and an explanation of how the CODM uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis. ASU 2023-07 also clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements and that an entity is permitted to disclose multiple measures of segment profit or loss, provided that certain criteria are met. ASU 2023-07 is effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update its segment related disclosures upon adoption. In December 2023, the FASB issued Accounting Standards Update 2023-09, “Income Taxes (Topic 740), Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2024 with early adoption permitted. The Company will update its income tax disclosures upon adoption.
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Revenue from Contracts with Customers | The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices can be fixed or variable; charged either on a periodic basis or based on activity. Except as disclosed below, the Company presents disaggregated revenue from contracts with customers in the consolidated statements of income. Banking and Factoring Segments The Banking segment derives its revenue principally from investments in interest-earning assets as well as noninterest income typical for the banking industry, and the Factoring segment derives the large majority of its revenue from interest income on purchased factored receivables. The majority of such revenue streams fall under Accounting Standards Codification Topic 310, “Receivables” (“Topic 310”) which is outside the scope of Topic 606. There are, however, certain Banking and Factoring activities that generate revenue under Topic 606. Descriptions of the Company's significant Banking and Factoring revenue-generating activities within the scope of Topic 606, which are included in non-interest income in the Company's consolidated statements of income, are as follows: •Service charges on deposits. Service charges on deposits primarily consists of fees from the Company's deposit customers for account maintenance, account analysis, and overdraft services. Account maintenance fees and analysis fees are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. •Card income. Card income primarily consists of interchange fees. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized when the transaction processing services are provided to the cardholder. •Net OREO gains (losses) and valuation adjustments. The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. •Fee income. Fee income for the Banking and Factoring segments primarily consists of transaction-based fees, including wire transfer fees, ACH and check fees, early termination fees, and other fees, earned from the Company's banking and factoring customers. Transaction based fees are recognized at the time the transaction is executed as that is the point in time the Company satisfies its performance obligations. •Insurance commissions. Insurance commissions are earned for brokering insurance policies. The Company's primary performance obligations for insurance commissions are satisfied and revenue is recognized when the brokered insurance policies are executed. Payments Segment The Payments segment derives a portion of its revenue from interest income on factored receivables and commercial loans related to invoice payments. These factored receivables consist of (i) invoices where we offer a Carrier a quick pay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and (ii) factoring transactions where we purchase receivables payable to such freight brokers from their shipper clients. The Payments segment also offers commercial loans that result from our offering certain Brokers an additional liquidity option through the ability to settle their invoices with us on an extended term following our payment to their Carriers. The balance of such commercial loans was $0 at March 31, 2024 and December 31, 2023. Such revenue falls under Topic 310 and is outside the scope of Topic 606. The Payments segment under its brand name, TriumphPay, connects Brokers, Shippers, Factors and Carriers through forward-thinking solutions that help each party successfully manage the life cycle of invoice presentment for services provided by Carrier through TriumphPay’s processing and audit of such invoice to its ultimate payment to the Carrier or the Factor. The Payments segment earns transaction revenue for such services from fees paid by its customers to receive auditing and payment processing of their invoices. Transaction revenue is recorded in Fee Income on the Consolidated Statements of Income and is subject to Topic 606. Transaction fees can be variable in nature. When such fees are variable, they are typically based upon the number of audit and payment transactions executed during a stated period; generally a calendar month. The customer is charged either a set fee per transaction or a set minimum fee for a stated number of transactions with the variable component being a per-invoice amount for transactions exceeding the stated minimum number. When applicable, the stated minimum number of transactions typically resets on a monthly basis. Transaction volume and related variable fees are known and recognized at each reporting period. Transaction fees can also be fixed in nature with such fees reflecting a set annual amount that is recognized ratably over the terms of the related contracts. In both variable and fixed arrangements, customers are typically billed monthly in arrears with payment due on 30 day terms and as such, no revenue is deferred. The Payments segment also earns network fees for providing its customers access to the TriumphPay network. Network fees are recorded in Fee Income on the Consolidated Statements of Income and are subject to Topic 606. Network fees are generally a fixed annual amount and are recognized ratably over the terms of the related contracts. Customers are typically billed monthly in arrears with payment due on 30 day terms and as such, no revenue is deferred. The Payments segment's service comprises a single performance obligation to provide stand-ready access to its payments and audit platforms for its customers which is satisfied over time as services are rendered. Given the nature of its services and related revenue, no significant judgments are made in applying Topic 606 and there are no refund, warranty, or similar obligations. The Payments segment's contracts with its customers are usually short-term in nature and can generally be terminated by either party without a termination penalty or refund after the notice period has lapsed. Therefore, the contracts are defined at the transaction level and do not extend beyond the service already provided. The contracts generally renew automatically without any significant material rights. Some of the contracts include tiered pricing, which is based primarily on volume. The fee charged per transaction is adjusted up or down based on the volume processed for a specified period. Management has concluded that this volume-based pricing approach does not constitute a future material right since changes in the fee ranges are typically offered to classes of customers with similar volume. The Payments segment recognizes fees charged to its customers on a gross basis as transaction revenue as it is the principal in respect of completing Payments segment transactions. As a principal to the transaction, the Payments segment controls the services on its platforms. The Payments segment bears primary responsibility for the fulfillment of the services, contracts directly with its customers, controls the product specifications, and defines the value proposal from its services. Further, the Payments segment has full discretion in determining the fee charged to its customers. The Payments segment is also responsible for providing customer support. Capitalized contract costs consist of (i) deferred sales commissions that are incremental costs of obtaining customer contracts and (ii) deferred set-up costs, primarily direct payroll costs, for implementation services provided to customers prior to the launching of the Company’s products for general availability (go-live) to customers. Deferred sales commissions are amortized ratably over two years, taking into consideration the initial contract term, expected renewal periods, and sales commissions paid on such renewal periods. Deferred set-up costs are amortized ratably over four years which estimates the benefit period of the capitalized costs starting on the go-live date of the service.
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Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gross Realized and Unrealized Gains (Losses) Recognized on Equity Securities | The gross realized and unrealized gains and losses recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:
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Summary of Equity Securities without Readily Determinable Fair Value | The following table summarizes the Company's investments in equity securities without readily determinable fair values:
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Schedule of Amortized Cost of Securities and Their Estimated Fair Values | The following table summarizes the amortized cost, fair value, and allowance for credit losses of debt securities and the corresponding amounts of gross unrealized gains and losses of available for sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities:
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Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of securities at March 31, 2024, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Schedule of Available-for-Sale Debt Securities in an Unrealized Loss Position with No Allowance | The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position:
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Summary of Activity in Allowance for Credit Losses for Held To Maturity Debt Securities | The following table presents the activity in the allowance for credit losses for held to maturity debt securities:
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Loans and Allowance for Credit Losses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans Held for Sale | The following table presents loans held for sale:
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Schedule of Amortized Cost and Unpaid Principal for Loans Held for Investment | The following table presents the amortized cost and unpaid principal balance of loans held for investment:
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Summary of Allowance for Loan and Lease Losses | The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows:
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Individual And Collective Allowance For Credit Losses On Financing Receivables And Loan Balances | The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:
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Summary of Contractually Past Due and Nonaccrual Loans | The following tables present an aging of contractually past due loans:
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Summary of Amortized Cost Basis of Loans on Nonaccrual Status | The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses:
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Schedule of Accrued Interest on Non Accrual Loans Reversed Through Interest Income | The following table presents accrued interest on nonaccrual loans reversed through interest income:
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Schedule of Nonperforming Loans | The following table presents information regarding nonperforming loans:
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Summary of Risk Category of Loans | As of March 31, 2024 and December 31, 2023, based on the most recent analysis performed, the risk category of loans is as follows:
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Summary of Loan Modifications | The following tables present the amortized cost basis of loan modifications to borrowers experiencing financial difficulty made during the reporting period:
The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty:
The following table presents the payment status of loans that have been modified in the last twelve months:
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Goodwill and Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill | Goodwill and intangible assets consist of the following:
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Schedule of Changes in Goodwill and Intangible Assets | The changes in goodwill and intangible assets during the three months ended March 31, 2024 and 2023 are as follows:
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Variable Interest Entities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The Company holds investments in the subordinated notes of the following closed Collateralized Loan Obligation (“CLO”) funds:
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Off-Balance Sheet Loan Commitments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Instruments with Off-Balance Sheet Risk | The contractual amounts of financial instruments with off-balance sheet risk were as follows:
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Credit Loss Expense for Off Balance Sheet Credit Exposures | The following table presents credit loss expense for off balance sheet credit exposures:
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Fair Value Disclosures (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized in the table below.
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Reconciliation of Opening Balance to Closing Balance of Fair Value of Contingent Consideration, Assets | A reconciliation of the opening balance to the closing balance of the fair value of the indemnification asset is as follows:
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Fair Value of Assets Measured on Non-recurring Basis | Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at March 31, 2024 and December 31, 2023.
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Estimated Fair Value of Company's Financial Assets and Financial Liabilities | The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at March 31, 2024 and December 31, 2023 were as follows:
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Regulatory Matters (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The actual capital amounts and ratios for the Company and TBK Bank are presented in the following table.
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Stockholders' Equity (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Capital Structure | The following summarizes the capital structure of Triumph Financial, Inc. Preferred Stock Series C
Common Stock
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Stock Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Company's Nonvested Restricted Stock Awards | A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the three months ended March 31, 2024 were as follows:
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Company's Nonvested Restricted Stock Units | A summary of changes in the Company’s nonvested Restricted Stock Units (“RSUs”) under the Omnibus Incentive Plan for the three months ended March 31, 2024 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Company's Nonvested Performance Stock Units | A summary of changes in the Company’s nonvested Market Based Performance Stock Units (“Market Based PSUs”) under the Omnibus Incentive Plan for the three months ended March 31, 2024 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Company's Stock Options | A summary of the changes in the Company’s stock options under the Omnibus Incentive Plan for the three months ended March 31, 2024 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Information Related to Stock Options | Information related to the stock options for the three months ended March 31, 2024 and 2023 was as follows:
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Factors Used in Computation of Earnings Per Share | The factors used in the earnings per share computation follow:
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Schedule of Shares not Considered in Computing Diluted Earnings per Common Share | Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows:
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Revenue From Contracts With Customers (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Payment Segment Revenue | The table below shows the Payments segment’s revenue from transaction and network fees from external customers, which are disaggregated by customer category.
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Business Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information |
(1) Net intersegment noninterest income (expense) includes:
Total assets and gross loans below include intersegment loans, which eliminate in consolidation.
|
Summary of Significant Accounting Policies (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
segment
| |
Accounting Policies [Abstract] | |
Number of reportable segments | 4 |
Securities - Schedule of Gross Realized and Unrealized Gains (Losses) Recognized on Equity Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Unrealized gains (losses) on equity securities held at the reporting date | $ (47) | $ 72 |
Realized gains (losses) on equity securities sold during the period | 0 | 18 |
Gross realized and unrealized gains (losses) recognized on equity securities | $ (47) | $ 90 |
Securities - Summary of Equity Securities without Readily Determinable Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Equity Securities without readily determinable fair value, at cost | $ 56,655 | $ 65,814 |
Upward adjustments based on observable price changes, cumulative | 10,163 | 10,163 |
Equity Securities without readily determinable fair value, carrying value | $ 66,818 | $ 75,977 |
Securities - Summary of Activity in Allowance for Credit Losses for Held To Maturity Debt Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Held to Maturity CLO Securities | ||
Beginning balance | $ 3,190 | $ 2,444 |
Credit loss expense | (55) | 141 |
Allowance for credit losses ending balance | $ 3,135 | $ 2,585 |
Loans and Allowance for Credit Losses - Schedule of Loans Held for Sale (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale | $ 3,712 | $ 1,236 |
1-4 family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale | 357 | 1,230 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale | $ 3,355 | $ 6 |
Loans and Allowance for Credit Losses - Schedule of Nonperforming Loans (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 60,206 | $ 45,677 |
Factored receivables greater than 90 days past due | 25,756 | 26,332 |
Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Factored receivables greater than 90 days past due | 25,756 | 26,332 |
Nonperforming Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 60,206 | 45,677 |
Total loans | 83,242 | 68,858 |
Nonperforming Loans | Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Factored receivables greater than 90 days past due | $ 23,036 | $ 23,181 |
Loans and Allowance for Credit Losses - Amortized Cost Basis of Loan Modifications (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 1,760 | $ 1,014 |
% of Portfolio | 0.00% | 0.00% |
Commercial real estate | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 195 | $ 119 |
% of Portfolio | 0.00% | 0.00% |
Commercial real estate | Payment Delay | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 755 | |
% of Portfolio | 0.10% | |
1-4 family residential | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 271 | |
% of Portfolio | 0.20% | |
Farmland | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 604 | |
% of Portfolio | 1.00% | |
Commercial | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 690 | $ 895 |
% of Portfolio | 0.10% | 0.10% |
Loans and Allowance for Credit Losses - Financial Effect of Loan Modifications (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Commercial real estate | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Weighted average years | 3 months 18 days | 3 months 18 days |
Commercial real estate | Payment Delay | ||
Financing Receivable, Modified [Line Items] | ||
Weighted average years | 6 months | |
1-4 family residential | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Weighted average years | 3 months 18 days | |
Farmland | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Weighted average years | 3 months 18 days | |
Commercial | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Weighted average years | 3 months 18 days | 3 months 18 days |
Goodwill and Intangible Assets - Schedule of Changes in Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 257,355 | $ 265,767 |
Acquired intangible assets | 2,920 | 3,042 |
Amortization of intangibles | (2,724) | (2,850) |
Ending balance | $ 257,551 | $ 265,959 |
Variable Interest Entities - Summary of Closed Collateralized Loan Obligation ("CLO") Funds (Details) - Collateralized Loan Obligation Funds - USD ($) $ in Thousands |
Jun. 20, 2017 |
Sep. 22, 2016 |
Jun. 02, 2016 |
---|---|---|---|
Trinitas IV | |||
Variable Interest Entity [Line Items] | |||
Offering Amount | $ 406,650 | ||
Trinitas V | |||
Variable Interest Entity [Line Items] | |||
Offering Amount | $ 409,000 | ||
Trinitas VI | |||
Variable Interest Entity [Line Items] | |||
Offering Amount | $ 717,100 |
Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Total held to maturity securities, net of ACL | $ 3,010 | $ 2,977 |
Collateralized Loan Obligation Funds | ||
Variable Interest Entity [Line Items] | ||
Total held to maturity securities, net of ACL | $ 3,010 | $ 2,977 |
Off-Balance Sheet Loan Commitments - Summary of Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 57,343 | $ 53,822 |
Variable Rate | 501,035 | 527,300 |
Total | 558,378 | 581,122 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 15,086 | 15,013 |
Variable Rate | 8,235 | 9,356 |
Total | 23,321 | 24,369 |
Commitments to purchase loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 0 | 0 |
Variable Rate | 17,125 | 17,125 |
Total | 17,125 | 17,125 |
Mortgage warehouse commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 0 | 0 |
Variable Rate | 951,772 | 895,896 |
Total | $ 951,772 | $ 895,896 |
Off-Balance Sheet Loan Commitments - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Other Noninterest Expense | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Credit loss expense (benefit) | $ 1,042 | $ 819 | |
Other Liabilities | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Allowance for credit losses on off-balance sheet credit exposure | $ 3,880 | $ 2,838 |
Fair Value Disclosures - Reconciliation of Opening Balance to Closing Balance of Fair Value of Contingent Consideration (Details) - Level 3 - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Indemnification Asset | ||
Indemnification Asset and Revenue Share Asset | ||
Beginning balance | $ 1,497 | $ 3,896 |
Asset recognized | 0 | 0 |
Change in fair value of asset recognized in earnings | (205) | (205) |
Reduction / payments received | 0 | 0 |
Ending balance | 1,292 | 3,691 |
Revenue Share Asset | ||
Indemnification Asset and Revenue Share Asset | ||
Beginning balance | 2,516 | 5,515 |
Asset recognized | 0 | 0 |
Change in fair value of asset recognized in earnings | 472 | (620) |
Reduction / payments received | (299) | (363) |
Ending balance | $ 2,689 | $ 4,532 |
Stockholders' Equity - Summary of Capital Structure (Details) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Class of Stock [Line Items] | ||
Shares authorized (in shares) | 50,000,000 | 50,000,000 |
Shares issued (in shares) | 29,019,861 | 28,986,255 |
Treasury shares (in shares) | (5,684,864) | (5,683,841) |
Shares outstanding (in shares) | 23,334,997 | 23,302,414 |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock Series C | ||
Class of Stock [Line Items] | ||
Shares authorized (in shares) | 51,750 | 51,750 |
Shares issued (in shares) | 45,000 | 45,000 |
Shares outstanding (in shares) | 45,000 | 45,000 |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 |
Liquidation preference amount | $ 45,000,000 | $ 45,000,000 |
Dividend rate | 7.125% | 7.125% |
Stockholders' Equity - Narrative (Details) - USD ($) |
3 Months Ended | ||||
---|---|---|---|---|---|
May 04, 2023 |
Apr. 28, 2023 |
Feb. 01, 2023 |
Mar. 31, 2024 |
Nov. 07, 2022 |
|
Accelerated share repurchase | |||||
Class of Stock [Line Items] | |||||
Amount authorized under stock repurchase program | $ 70,000,000 | $ 100,000,000 | |||
Shares repurchased into treasury stock (in shares) | 247,954 | 961,373 | |||
Stock repurchase program, percent of authorized shares repurchased | 80.00% | ||||
Stock Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Amount authorized under stock repurchase program | $ 50,000,000 | ||||
Shares repurchased into treasury stock (in shares) | 0 | ||||
Stock repurchase program, period in force | 1 year |
Stock Based Compensation - Summary of Changes in Company's Nonvested Restricted Stock Awards (Details) - Restricted Stock Awards (RSAs) |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
Shares | |
Beginning balance (in shares) | shares | 122,931 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 122,931 |
Weighted-Average Grant-Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 77.14 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 77.14 |
Stock Based Compensation - Summary of Changes in Company's Nonvested Restricted Stock Units (Details) - Restricted stock units |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
Shares | |
Beginning balance (in shares) | shares | 230,034 |
Granted (in shares) | shares | 6,127 |
Vested (in shares) | shares | (9,877) |
Forfeited (in shares) | shares | (3,578) |
Ending balance (in shares) | shares | 222,706 |
Weighted-Average Grant-Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 63.30 |
Granted (in dollars per share) | $ / shares | 69.70 |
Vested (in dollars per share) | $ / shares | 90.97 |
Forfeited (in dollars per share) | $ / shares | 52.90 |
Ending balance (in dollars per share) | $ / shares | $ 62.42 |
Stock Based Compensation - Summary of Changes in Company's Nonvested Market Based Performance Stock Units (Details) - Performance stock units - market based |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
Shares | |
Beginning balance (in shares) | shares | 115,888 |
Granted (in shares) | shares | 0 |
Incremental shares earned (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 115,888 |
Weighted-Average Grant-Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 81.72 |
Granted (in dollars per share) | $ / shares | 0 |
Incremental shares earned (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 81.74 |
Stock Based Compensation - Schedule of Information Related to Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cash received from option exercises, net | $ 144 | $ (33) |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value of options exercised | 289 | 79 |
Cash received from option exercises, net | 144 | (33) |
Tax benefit realized from option exercises | $ 61 | $ 16 |
Weighted average fair value per share of options granted (in dollars per share) | $ 0 | $ 0 |
Revenue From Contracts With Customers - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Gross loans | $ 4,195,120 | $ 4,163,100 |
Commercial loans | ||
Disaggregation of Revenue [Line Items] | ||
Gross loans | $ 1,160,870 | 1,170,365 |
Payments Segment | ||
Disaggregation of Revenue [Line Items] | ||
Deferred sales commissions amortization period | 2 years | |
Deferred set-up costs amortization period | 4 years | |
Deferred sales commissions | $ 338 | 394 |
Deferred set-up costs | 800 | 505 |
Payments Segment | Broker | Commercial loans | ||
Disaggregation of Revenue [Line Items] | ||
Gross loans | $ 0 | $ 0 |
Revenue From Contracts With Customers - Summary of Payment Segment Revenue (Details) - Payments - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Total fee income | $ 5,471 | $ 3,697 |
Broker fee income | ||
Disaggregation of Revenue [Line Items] | ||
Total fee income | 4,115 | 2,356 |
Factor fee income | ||
Disaggregation of Revenue [Line Items] | ||
Total fee income | 1,295 | 1,276 |
Other fee income | ||
Disaggregation of Revenue [Line Items] | ||
Total fee income | $ 61 | $ 65 |
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