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

 

Exhibit 99.1

Triumph Bancorp Reports First Quarter Net Income to Common Stockholders of $14.8 Million

DALLAS – April 17, 2019 (GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph”) today announced earnings and operating results for the first quarter of 2019.

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

2019 First Quarter Highlights and Recent Developments

 

•

For the first quarter of 2019, net income available to common stockholders was $14.8 million. Diluted earnings per share were $0.55.  

 

•

Net interest margin (“NIM”) was 6.15% for the quarter ended March 31, 2019.

 

•

Total loans held for investment increased $4.2 million, or 0.1%, to $3.613 billion at March 31, 2019. Average loans for the quarter increased $2.6 million, or 0.1%, to $3.535 billion. Loan growth was consistent with historical first quarter results, which is primarily driven by seasonality in our transportation factoring business.

 

•

Triumph Business Capital grew period-end clients to 6,382 clients, which is an increase of 191 clients, or 3.1%. The total dollar value of invoices purchased for the quarter ended March 31, 2019 was $1.325 billion with an average invoice price of $1,678.  

 

•

At March 31, 2019, there were 130 clients utilizing the TriumphPay platform, which is an increase of 17 clients, or 15.0%. For the quarter ended March 31, 2019, TriumphPay processed 114,066 invoices paying 22,932 distinct carriers a total of $141.0 million.

 

•

During the quarter ended March 31, 2019, the Company repurchased 247,312 shares into treasury stock under its stock repurchase program at an average price of $30.51, for a total of $7.6 million.

Balance Sheet

Total loans held for investment were $3.613 billion at March 31, 2019. Our commercial finance loans, which comprise 33% of the loan portfolio, were $1.187 billion at March 31, 2019, compared to $1.256 billion at December 31, 2018, a decrease of $69.3 million, or 5.5% in the first quarter of 2019.

Total deposits were $3.314 billion at March 31, 2019, a decrease of $135.9 million or 3.9% in the first quarter of 2019.  Non-interest-bearing deposits accounted for 20% of total deposits and non-time deposits accounted for 61% of total deposits at March 31, 2019.  

Net Interest Income

We earned net interest income for the quarter ended March 31, 2019 of $61.3 million compared to $64.9 million for the quarter ended December 31, 2018.

Yields on loans for the quarter ended March 31, 2019 were down 15 bps from the prior quarter to 7.99%. The average cost of our total deposits was 0.99% for the quarter ended March 31, 2019 compared to 0.91% for the quarter ended December 31, 2018, on an annualized basis.  

 

Asset Quality

Non-performing assets remained flat at 0.84% of total assets at March 31, 2019 and December 31, 2018.  The ratio of past due to total loans decreased to 2.33% at March 31, 2019 from 2.41% at December 31, 2018. We recorded total net charge-offs of $1.0 million, or 0.03% of average loans, for the quarter ended March 31, 2019 compared to net charge-offs of $1.6 million, or 0.05% of average loans, for the quarter ended December 31, 2018.  

1

 

We recorded a provision for loan losses of $1.0 million for the quarter ended March 31, 2019 compared to a provision of $1.9 million for the quarter ended December 31, 2018. From December 31, 2018 to March 31, 2019, our ALLL remained flat at $27.6 million or 0.76% of total loans.  

Non-Interest Income and Expense

We earned non-interest income for the quarter ended March 31, 2019 of $7.5 million compared to $6.8 million for the quarter ended December 31, 2018.

For the quarter ended March 31, 2019, non-interest expense totaled $48.6 million, compared to $47.0 million for the quarter ended December 31, 2018.  

Conference Call Information

Aaron P. Graft, Vice Chairman and CEO and Bryce Fowler, CFO will review the quarterly results in a conference call for investors and analysts beginning at 7:00 a.m. Central Time on Thursday, April 18, 2019. Dan Karas, Chief Lending Officer, will also be available for questions.

To participate in the live conference call, please dial 1-855-940-9472 (Canada: 1-855-669-9657) and request to be joined into the Triumph Bancorp, Inc. call.  A simultaneous audio-only webcast may be accessed via the Company's website at www.triumphbancorp.com through the Investor Relations, News & Events, Webcasts and Presentations links, or through a direct link here at: https://services.choruscall.com/links/tbk190418.html. An archive of this conference call will subsequently be available at this same location on the Company’s website.

2

 

About Triumph

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

Forward-Looking Statements

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

While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2019.

Non-GAAP Financial Measures

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


3

 

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

 

As of and for the Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

Financial Highlights:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

4,529,783

 

 

$

4,559,779

 

 

$

4,537,102

 

 

$

3,794,631

 

 

$

3,405,010

 

Loans held for investment

 

$

3,612,869

 

 

$

3,608,644

 

 

$

3,512,143

 

 

$

3,196,462

 

 

$

2,873,985

 

Deposits

 

$

3,314,440

 

 

$

3,450,349

 

 

$

3,439,049

 

 

$

2,624,942

 

 

$

2,533,498

 

Net income available to common stockholders

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

12,192

 

 

$

11,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios - Annualized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.33

%

 

 

1.60

%

 

 

0.90

%

 

 

1.37

%

 

 

1.43

%

Return on average total equity

 

 

9.30

%

 

 

11.35

%

 

 

5.88

%

 

 

8.53

%

 

 

12.20

%

Return on average common equity

 

 

9.30

%

 

 

11.40

%

 

 

5.85

%

 

 

8.54

%

 

 

12.30

%

Return on average tangible common equity (1)

 

 

13.43

%

 

 

16.73

%

 

 

7.57

%

 

 

9.95

%

 

 

14.75

%

Yield on loans(2)

 

 

7.99

%

 

 

8.14

%

 

 

8.33

%

 

 

8.09

%

 

 

7.65

%

Cost of interest bearing deposits

 

 

1.24

%

 

 

1.15

%

 

 

1.08

%

 

 

0.93

%

 

 

0.86

%

Cost of total deposits

 

 

0.99

%

 

 

0.91

%

 

 

0.85

%

 

 

0.73

%

 

 

0.68

%

Cost of total funds

 

 

1.28

%

 

 

1.14

%

 

 

1.16

%

 

 

1.06

%

 

 

0.95

%

Net interest margin(2)

 

 

6.15

%

 

 

6.34

%

 

 

6.59

%

 

 

6.36

%

 

 

6.06

%

Net non-interest expense to average assets

 

 

3.70

%

 

 

3.55

%

 

 

4.19

%

 

 

3.59

%

 

 

3.43

%

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

 

 

3.70

%

 

 

3.55

%

 

 

3.62

%

 

 

3.47

%

 

 

3.56

%

Efficiency ratio

 

 

70.54

%

 

 

65.52

%

 

 

72.15

%

 

 

64.26

%

 

 

65.09

%

Adjusted efficiency ratio (1)

 

 

70.54

%

 

 

65.52

%

 

 

63.49

%

 

 

62.38

%

 

 

66.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due to total loans

 

 

2.33

%

 

 

2.41

%

 

 

2.23

%

 

 

2.54

%

 

 

2.41

%

Non-performing loans to total loans

 

 

0.95

%

 

 

1.00

%

 

 

1.13

%

 

 

1.43

%

 

 

1.41

%

Non-performing assets to total assets

 

 

0.84

%

 

 

0.84

%

 

 

0.93

%

 

 

1.28

%

 

 

1.47

%

ALLL to non-performing loans

 

 

80.70

%

 

 

76.47

%

 

 

68.82

%

 

 

53.57

%

 

 

49.52

%

ALLL to total loans

 

 

0.76

%

 

 

0.76

%

 

 

0.78

%

 

 

0.77

%

 

 

0.70

%

Net charge-offs to average loans

 

 

0.03

%

 

 

0.05

%

 

 

0.12

%

 

 

0.01

%

 

 

0.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital to average assets(4)

 

 

11.32

%

 

 

11.08

%

 

 

11.75

%

 

 

15.00

%

 

 

11.23

%

Tier 1 capital to risk-weighted assets(4)

 

 

11.76

%

 

 

11.49

%

 

 

11.16

%

 

 

14.68

%

 

 

11.54

%

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

 

 

10.81

%

 

 

10.55

%

 

 

9.96

%

 

 

13.32

%

 

 

10.05

%

Total capital to risk-weighted assets(4)

 

 

13.62

%

 

 

13.35

%

 

 

13.05

%

 

 

16.73

%

 

 

13.66

%

Total equity to total assets

 

 

14.27

%

 

 

13.96

%

 

 

13.59

%

 

 

16.00

%

 

 

11.83

%

Tangible common stockholders' equity to tangible assets(1)

 

 

10.37

%

 

 

10.03

%

 

 

9.35

%

 

 

13.05

%

 

 

9.86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

24.19

 

 

$

23.62

 

 

$

23.10

 

 

$

22.76

 

 

$

18.89

 

Tangible book value per share (1)

 

$

16.82

 

 

$

16.22

 

 

$

15.42

 

 

$

18.27

 

 

$

15.82

 

Basic earnings per common share

 

$

0.55

 

 

$

0.68

 

 

$

0.34

 

 

$

0.48

 

 

$

0.57

 

Diluted earnings per common share

 

$

0.55

 

 

$

0.67

 

 

$

0.34

 

 

$

0.47

 

 

$

0.56

 

Adjusted diluted earnings per common share(1)

 

$

0.55

 

 

$

0.67

 

 

$

0.51

 

 

$

0.50

 

 

$

0.52

 

Shares outstanding end of period

 

 

26,709,411

 

 

 

26,949,936

 

 

 

26,279,761

 

 

 

26,260,785

 

 

 

20,824,509

 



4

 

Unaudited consolidated balance sheet as of:

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

 

$

171,950

 

 

$

234,939

 

 

$

282,409

 

 

$

133,365

 

 

$

106,046

 

Securities - available for sale

 

 

339,465

 

 

 

336,423

 

 

 

355,981

 

 

 

183,184

 

 

 

192,916

 

Securities - held to maturity

 

 

8,499

 

 

 

8,487

 

 

 

8,403

 

 

 

8,673

 

 

 

8,614

 

Equity securities

 

 

5,183

 

 

 

5,044

 

 

 

4,981

 

 

 

5,025

 

 

 

4,925

 

Loans held for sale

 

 

610

 

 

 

2,106

 

 

 

683

 

 

 

—

 

 

 

—

 

Loans held for investment

 

 

3,612,869

 

 

 

3,608,644

 

 

 

3,512,143

 

 

 

3,196,462

 

 

 

2,873,985

 

Allowance for loan and lease losses

 

 

(27,605

)

 

 

(27,571

)

 

 

(27,256

)

 

 

(24,547

)

 

 

(20,022

)

Loans, net

 

 

3,585,264

 

 

 

3,581,073

 

 

 

3,484,887

 

 

 

3,171,915

 

 

 

2,853,963

 

FHLB stock

 

 

21,191

 

 

 

15,943

 

 

 

23,109

 

 

 

19,223

 

 

 

16,508

 

Premises and equipment, net

 

 

84,931

 

 

 

83,392

 

 

 

82,935

 

 

 

68,313

 

 

 

62,826

 

Other real estate owned ("OREO"), net

 

 

3,073

 

 

 

2,060

 

 

 

2,442

 

 

 

2,528

 

 

 

9,186

 

Goodwill and intangible assets, net

 

 

197,015

 

 

 

199,417

 

 

 

201,842

 

 

 

117,777

 

 

 

63,923

 

Bank-owned life insurance

 

 

40,667

 

 

 

40,509

 

 

 

40,339

 

 

 

40,168

 

 

 

44,534

 

Deferred tax asset, net

 

 

7,608

 

 

 

8,438

 

 

 

8,137

 

 

 

8,810

 

 

 

8,849

 

Other assets

 

 

64,327

 

 

 

41,948

 

 

 

40,954

 

 

 

35,650

 

 

 

32,720

 

Total assets

 

$

4,529,783

 

 

$

4,559,779

 

 

$

4,537,102

 

 

$

3,794,631

 

 

$

3,405,010

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

667,597

 

 

$

724,527

 

 

$

697,903

 

 

$

561,033

 

 

$

548,991

 

Interest bearing deposits

 

 

2,646,843

 

 

 

2,725,822

 

 

 

2,741,146

 

 

 

2,063,909

 

 

 

1,984,507

 

Total deposits

 

 

3,314,440

 

 

 

3,450,349

 

 

 

3,439,049

 

 

 

2,624,942

 

 

 

2,533,498

 

Customer repurchase agreements

 

 

3,727

 

 

 

4,485

 

 

 

13,248

 

 

 

10,509

 

 

 

6,751

 

Federal Home Loan Bank advances

 

 

405,000

 

 

 

330,000

 

 

 

330,000

 

 

 

420,000

 

 

 

355,000

 

Subordinated notes

 

 

48,956

 

 

 

48,929

 

 

 

48,903

 

 

 

48,878

 

 

 

48,853

 

Junior subordinated debentures

 

 

39,200

 

 

 

39,083

 

 

 

38,966

 

 

 

38,849

 

 

 

38,734

 

Other liabilities

 

 

72,244

 

 

 

50,326

 

 

 

50,295

 

 

 

44,228

 

 

 

19,230

 

Total liabilities

 

 

3,883,567

 

 

 

3,923,172

 

 

 

3,920,461

 

 

 

3,187,406

 

 

 

3,002,066

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock series A

 

 

—

 

 

 

—

 

 

 

4,550

 

 

 

4,550

 

 

 

4,550

 

Preferred stock series B

 

 

—

 

 

 

—

 

 

 

5,108

 

 

 

5,108

 

 

 

5,108

 

Common stock

 

 

271

 

 

 

271

 

 

 

264

 

 

 

264

 

 

 

209

 

Additional paid-in-capital

 

 

470,292

 

 

 

469,341

 

 

 

458,920

 

 

 

457,980

 

 

 

265,406

 

Treasury stock, at cost

 

 

(9,881

)

 

 

(2,288

)

 

 

(2,285

)

 

 

(2,254

)

 

 

(1,853

)

Retained earnings

 

 

185,274

 

 

 

170,486

 

 

 

152,401

 

 

 

143,426

 

 

 

131,234

 

Accumulated other comprehensive income

 

 

260

 

 

 

(1,203

)

 

 

(2,317

)

 

 

(1,849

)

 

 

(1,710

)

Total equity

 

 

646,216

 

 

 

636,607

 

 

 

616,641

 

 

 

607,225

 

 

 

402,944

 

Total liabilities and equity

 

$

4,529,783

 

 

$

4,559,779

 

 

$

4,537,102

 

 

$

3,794,631

 

 

$

3,405,010

 


5

 

Unaudited consolidated statement of income:

 

For the Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

45,094

 

 

$

44,435

 

 

$

41,257

 

 

$

38,148

 

 

$

36,883

 

Factored receivables, including fees

 

 

24,556

 

 

 

28,070

 

 

 

27,939

 

 

 

20,791

 

 

 

15,303

 

Securities

 

 

2,644

 

 

 

2,314

 

 

 

1,551

 

 

 

1,179

 

 

 

1,310

 

FHLB stock

 

 

192

 

 

 

154

 

 

 

147

 

 

 

101

 

 

 

105

 

Cash deposits

 

 

778

 

 

 

877

 

 

 

865

 

 

 

1,030

 

 

 

517

 

Total interest income

 

 

73,264

 

 

 

75,850

 

 

 

71,759

 

 

 

61,249

 

 

 

54,118

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

8,218

 

 

 

7,931

 

 

 

6,219

 

 

 

4,631

 

 

 

4,277

 

Subordinated notes

 

 

839

 

 

 

839

 

 

 

837

 

 

 

838

 

 

 

837

 

Junior subordinated debentures

 

 

760

 

 

 

717

 

 

 

714

 

 

 

713

 

 

 

597

 

Other borrowings

 

 

2,136

 

 

 

1,482

 

 

 

2,207

 

 

 

1,810

 

 

 

1,277

 

Total interest expense

 

 

11,953

 

 

 

10,969

 

 

 

9,977

 

 

 

7,992

 

 

 

6,988

 

Net interest income

 

 

61,311

 

 

 

64,881

 

 

 

61,782

 

 

 

53,257

 

 

 

47,130

 

Provision for loan losses

 

 

1,014

 

 

 

1,910

 

 

 

6,803

 

 

 

4,906

 

 

 

2,548

 

Net interest income after provision for loan losses

 

 

60,297

 

 

 

62,971

 

 

 

54,979

 

 

 

48,351

 

 

 

44,582

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

1,606

 

 

 

1,702

 

 

 

1,412

 

 

 

1,210

 

 

 

1,145

 

Card income

 

 

1,844

 

 

 

1,999

 

 

 

1,877

 

 

 

1,394

 

 

 

1,244

 

Net OREO gains (losses) and valuation adjustments

 

 

209

 

 

 

37

 

 

 

65

 

 

 

(528

)

 

 

(88

)

Net gains (losses) on sale of securities

 

 

(11

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(272

)

Fee income

 

 

1,612

 

 

 

1,636

 

 

 

1,593

 

 

 

1,121

 

 

 

800

 

Insurance commissions

 

 

919

 

 

 

846

 

 

 

1,113

 

 

 

819

 

 

 

714

 

Gain on sale of subsidiary

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,071

 

Other

 

 

1,359

 

 

 

574

 

 

 

(1

)

 

 

929

 

 

 

558

 

Total non-interest income

 

 

7,538

 

 

 

6,794

 

 

 

6,059

 

 

 

4,945

 

 

 

5,172

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

26,439

 

 

 

25,586

 

 

 

24,695

 

 

 

20,527

 

 

 

19,404

 

Occupancy, furniture and equipment

 

 

4,522

 

 

 

4,402

 

 

 

3,553

 

 

 

3,014

 

 

 

3,054

 

FDIC insurance and other regulatory assessments

 

 

299

 

 

 

184

 

 

 

363

 

 

 

383

 

 

 

199

 

Professional fees

 

 

1,865

 

 

 

1,837

 

 

 

3,384

 

 

 

2,078

 

 

 

1,640

 

Amortization of intangible assets

 

 

2,402

 

 

 

2,438

 

 

 

2,064

 

 

 

1,361

 

 

 

1,117

 

Advertising and promotion

 

 

1,604

 

 

 

1,036

 

 

 

1,609

 

 

 

1,300

 

 

 

1,029

 

Communications and technology

 

 

4,874

 

 

 

4,388

 

 

 

7,252

 

 

 

3,271

 

 

 

3,359

 

Other

 

 

6,561

 

 

 

7,091

 

 

 

6,026

 

 

 

5,469

 

 

 

4,240

 

Total non-interest expense

 

 

48,566

 

 

 

46,962

 

 

 

48,946

 

 

 

37,403

 

 

 

34,042

 

Net income before income tax

 

 

19,269

 

 

 

22,803

 

 

 

12,092

 

 

 

15,893

 

 

 

15,712

 

Income tax expense

 

 

4,481

 

 

 

4,718

 

 

 

2,922

 

 

 

3,508

 

 

 

3,644

 

Net income

 

$

14,788

 

 

$

18,085

 

 

$

9,170

 

 

$

12,385

 

 

$

12,068

 

Dividends on preferred stock

 

 

—

 

 

 

—

 

 

 

(195

)

 

 

(193

)

 

 

(190

)

Net income available to common stockholders

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

12,192

 

 

$

11,878

 

 


6

 

Earnings per share:

 

For the Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income to common stockholders

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

12,192

 

 

$

11,878

 

Weighted average common shares outstanding

 

 

26,679,724

 

 

 

26,666,554

 

 

 

26,178,194

 

 

 

25,519,108

 

 

 

20,721,363

 

Basic earnings per common share

 

$

0.55

 

 

$

0.68

 

 

$

0.34

 

 

$

0.48

 

 

$

0.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income to common stockholders

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

12,192

 

 

$

11,878

 

Dilutive effect of preferred stock

 

 

—

 

 

 

—

 

 

 

195

 

 

 

193

 

 

 

190

 

Net income to common stockholders - diluted

 

$

14,788

 

 

$

18,085

 

 

$

9,170

 

 

$

12,385

 

 

$

12,068

 

Weighted average common shares outstanding

 

 

26,679,724

 

 

 

26,666,554

 

 

 

26,178,194

 

 

 

25,519,108

 

 

 

20,721,363

 

Dilutive effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assumed conversion of Preferred A

 

 

—

 

 

 

89,240

 

 

 

315,773

 

 

 

315,773

 

 

 

315,773

 

Assumed conversion of Preferred B

 

 

—

 

 

 

100,176

 

 

 

354,471

 

 

 

354,471

 

 

 

354,471

 

Assumed exercises of stock options

 

 

64,166

 

 

 

76,219

 

 

 

90,320

 

 

 

86,821

 

 

 

83,872

 

Restricted stock awards

 

 

49,795

 

 

 

46,457

 

 

 

45,796

 

 

 

37,417

 

 

 

85,045

 

Restricted stock units

 

 

—

 

 

 

1,303

 

 

 

7,276

 

 

 

2,288

 

 

 

—

 

Performance stock units

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Weighted average shares outstanding - diluted

 

 

26,793,685

 

 

 

26,979,949

 

 

 

26,991,830

 

 

 

26,315,878

 

 

 

21,560,524

 

Diluted earnings per common share

 

$

0.55

 

 

$

0.67

 

 

$

0.34

 

 

$

0.47

 

 

$

0.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

Assumed conversion of Preferred A

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Assumed conversion of Preferred B

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Stock options

 

 

50,752

 

 

 

51,952

 

 

 

51,952

 

 

 

51,952

 

 

 

—

 

Restricted stock awards

 

 

13,290

 

 

 

14,513

 

 

 

14,513

 

 

 

—

 

 

 

—

 

Restricted stock units

 

 

58,400

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Performance stock units

 

 

58,400

 

 

 

59,658

 

 

 

59,658

 

 

 

59,658

 

 

 

—

 

 

 


7

 

Loans held for investment summarized as of:

  

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

Commercial real estate

 

$

1,093,882

 

 

$

992,080

 

 

$

906,494

 

 

$

766,839

 

 

$

781,006

 

Construction, land development, land

 

 

145,002

 

 

 

179,591

 

 

 

190,920

 

 

 

147,852

 

 

 

143,876

 

1-4 family residential properties

 

 

194,067

 

 

 

190,185

 

 

 

194,752

 

 

 

122,653

 

 

 

122,979

 

Farmland

 

 

156,299

 

 

 

170,540

 

 

 

177,313

 

 

 

177,060

 

 

 

184,064

 

Commercial

 

 

1,117,640

 

 

 

1,114,971

 

 

 

1,123,598

 

 

 

1,006,443

 

 

 

930,283

 

Factored receivables

 

 

570,663

 

 

 

617,791

 

 

 

611,285

 

 

 

603,812

 

 

 

397,145

 

Consumer

 

 

27,941

 

 

 

29,822

 

 

 

31,423

 

 

 

28,775

 

 

 

29,244

 

Mortgage warehouse

 

 

307,375

 

 

 

313,664

 

 

 

276,358

 

 

 

343,028

 

 

 

285,388

 

     Total loans

 

$

3,612,869

 

 

$

3,608,644

 

 

$

3,512,143

 

 

$

3,196,462

 

 

$

2,873,985

 

A portion of our total loans held for investment portfolio consists of traditional community bank loans as well as commercial finance products offered under our commercial finance brands on a nationwide basis. Commercial finance loans are further summarized below:

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

Equipment

 

$

364,447

 

 

$

352,037

 

 

$

323,832

 

 

$

290,314

 

 

$

260,502

 

Asset based lending (General)

 

 

174,447

 

 

 

214,110

 

 

 

273,096

 

 

 

261,412

 

 

 

230,314

 

Premium finance

 

 

77,389

 

 

 

72,302

 

 

 

75,293

 

 

 

51,416

 

 

 

48,561

 

Factored receivables

 

 

570,663

 

 

 

617,791

 

 

 

611,285

 

 

 

603,812

 

 

 

397,145

 

     Commercial finance

 

$

1,186,946

 

 

$

1,256,240

 

 

$

1,283,506

 

 

$

1,206,954

 

 

$

936,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial finance % of total loans

 

 

33

%

 

 

35

%

 

 

37

%

 

 

38

%

 

 

33

%

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

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

Average community banking

 

$

2,340,295

 

 

$

2,268,262

 

 

$

2,039,624

 

 

$

1,897,678

 

 

$

1,816,921

 

Average commercial finance(1)

 

 

1,194,748

 

 

 

1,264,209

 

 

 

1,254,095

 

 

 

1,024,369

 

 

 

949,938

 

Average total loans

 

$

3,535,043

 

 

$

3,532,471

 

 

$

3,293,719

 

 

$

2,922,047

 

 

$

2,766,859

 

Community banking yield

 

 

5.87

%

 

 

5.78

%

 

 

5.68

%

 

 

5.80

%

 

 

5.81

%

Commercial finance yield(1)

 

 

12.15

%

 

 

12.39

%

 

 

12.66

%

 

 

12.08

%

 

 

11.17

%

Total loan yield

 

 

7.99

%

 

 

8.14

%

 

 

8.33

%

 

 

8.09

%

 

 

7.65

%

(1) Includes assets held for sale for the period ended March 31, 2018

8

 

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

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

Factored receivable period end balance

 

$

534,420,000

 

 

$

588,750,000

 

 

$

579,985,000

 

 

$

577,548,000

 

 

$

372,771,000

 

Yield on average receivable balance

 

 

17.96

%

 

 

18.24

%

 

 

18.96

%

 

 

18.70

%

 

 

17.40

%

Rolling twelve quarter annual charge-off rate

 

 

0.39

%

 

 

0.37

%

 

 

0.38

%

 

 

0.41

%

 

 

0.50

%

Factored receivables - transportation concentration

 

 

81

%

 

 

83

%

 

 

83

%

 

 

84

%

 

 

86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, including fees

 

$

23,803,000

 

 

$

27,578,000

 

 

$

27,420,000

 

 

$

20,314,000

 

 

$

14,780,000

 

Non-interest income

 

 

1,077,000

 

 

 

1,032,000

 

 

 

942,000

 

 

 

920,000

 

 

 

590,000

 

Factored receivable total revenue

 

 

24,880,000

 

 

 

28,610,000

 

 

 

28,362,000

 

 

 

21,234,000

 

 

 

15,370,000

 

Average net funds employed

 

 

490,241,000

 

 

 

547,996,000

 

 

 

525,499,000

 

 

 

398,096,000

 

 

 

316,488,000

 

Yield on average net funds employed

 

 

20.58

%

 

 

20.71

%

 

 

21.41

%

 

 

21.39

%

 

 

19.70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable purchased

 

$

1,325,140,000

 

 

$

1,541,332,000

 

 

$

1,503,049,000

 

 

$

1,162,810,000

 

 

$

912,336,000

 

Number of invoices purchased

 

 

789,838

 

 

 

882,042

 

 

 

836,771

 

 

 

656,429

 

 

 

521,906

 

Average invoice size

 

$

1,678

 

 

$

1,747

 

 

$

1,796

 

 

$

1,771

 

 

$

1,751

 

Average invoice size - transportation

 

$

1,541

 

 

$

1,625

 

 

$

1,666

 

 

$

1,695

 

 

$

1,662

 

Average invoice size - non-transportation

 

$

3,276

 

 

$

3,209

 

 

$

3,267

 

 

$

2,522

 

 

$

2,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net new clients

 

 

191

 

 

 

259

 

 

 

422

 

 

 

2,072

 

 

 

280

 

Period end clients

 

 

6,382

 

 

 

6,191

 

 

 

5,932

 

 

 

5,510

 

 

 

3,438

 

Deposits summarized as of:

  

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

 

Non-interest bearing demand

 

$

667,597

 

 

$

724,527

 

 

$

697,903

 

 

$

561,033

 

 

$

548,991

 

 

Interest bearing demand

 

 

602,088

 

 

 

615,704

 

 

 

608,775

 

 

 

358,246

 

 

 

392,947

 

 

Individual retirement accounts

 

 

112,696

 

 

 

115,583

 

 

 

118,459

 

 

 

101,380

 

 

 

105,558

 

 

Money market

 

 

372,109

 

 

 

443,663

 

 

 

413,402

 

 

 

268,699

 

 

 

283,354

 

 

Savings

 

 

372,914

 

 

 

369,389

 

 

 

373,062

 

 

 

239,127

 

 

 

244,103

 

 

Certificates of deposit

 

 

851,411

 

 

 

835,127

 

 

 

854,048

 

 

 

751,290

 

 

 

783,651

 

 

Brokered deposits

 

 

335,625

 

 

 

346,356

 

 

 

373,400

 

 

 

345,167

 

 

 

174,894

 

 

     Total deposits

 

$

3,314,440

 

 

$

3,450,349

 

 

$

3,439,049

 

 

$

2,624,942

 

 

$

2,533,498

 

 

9

 

Net interest margin summarized for the three months ended:

 

March 31, 2019

 

 

December 31, 2018

 

 

 

Average

 

 

 

 

 

 

Average

 

 

Average

 

 

 

 

 

 

Average

 

(Dollars in thousands)

 

Balance

 

 

Interest

 

 

Rate

 

 

Balance

 

 

Interest

 

 

Rate

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning cash balances

 

$

126,372

 

 

$

778

 

 

 

2.50

%

 

$

152,212

 

 

$

877

 

 

 

2.29

%

Taxable securities

 

 

275,642

 

 

 

2,169

 

 

 

3.19

%

 

 

235,234

 

 

 

1,674

 

 

 

2.82

%

Tax-exempt securities

 

 

88,667

 

 

 

475

 

 

 

2.17

%

 

 

123,575

 

 

 

640

 

 

 

2.05

%

FHLB stock

 

 

17,860

 

 

 

192

 

 

 

4.36

%

 

 

16,426

 

 

 

154

 

 

 

3.72

%

Loans

 

 

3,535,043

 

 

 

69,650

 

 

 

7.99

%

 

 

3,532,471

 

 

 

72,505

 

 

 

8.14

%

     Total interest earning assets

 

$

4,043,584

 

 

$

73,264

 

 

 

7.35

%

 

$

4,059,918

 

 

$

75,850

 

 

 

7.41

%

Non-interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

458,176

 

 

 

 

 

 

 

 

 

 

 

429,000

 

 

 

 

 

 

 

 

 

          Total assets

 

$

4,501,760

 

 

 

 

 

 

 

 

 

 

$

4,488,918

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand

 

$

606,096

 

 

$

374

 

 

 

0.25

%

 

$

613,872

 

 

$

417

 

 

 

0.27

%

Individual retirement accounts

 

 

113,636

 

 

 

405

 

 

 

1.45

%

 

 

116,575

 

 

 

385

 

 

 

1.31

%

Money market

 

 

408,953

 

 

 

1,331

 

 

 

1.32

%

 

 

430,864

 

 

 

1,312

 

 

 

1.21

%

Savings

 

 

370,067

 

 

 

123

 

 

 

0.13

%

 

 

373,650

 

 

 

159

 

 

 

0.17

%

Certificates of deposit

 

 

834,515

 

 

 

3,965

 

 

 

1.93

%

 

 

862,500

 

 

 

3,749

 

 

 

1.72

%

      Brokered deposits

 

 

353,829

 

 

 

2,020

 

 

 

2.32

%

 

 

347,498

 

 

 

1,909

 

 

 

2.18

%

     Total deposits

 

 

2,687,096

 

 

 

8,218

 

 

 

1.24

%

 

 

2,744,959

 

 

 

7,931

 

 

 

1.15

%

Subordinated notes

 

 

48,940

 

 

 

839

 

 

 

6.95

%

 

 

48,914

 

 

 

839

 

 

 

6.81

%

Junior subordinated debentures

 

 

39,125

 

 

 

760

 

 

 

7.88

%

 

 

39,011

 

 

 

717

 

 

 

7.29

%

Other borrowings

 

 

336,667

 

 

 

2,136

 

 

 

2.57

%

 

 

262,391

 

 

 

1,482

 

 

 

2.24

%

     Total interest bearing liabilities

 

$

3,111,828

 

 

$

11,953

 

 

 

1.56

%

 

$

3,095,275

 

 

$

10,969

 

 

 

1.41

%

Non-interest bearing liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

679,538

 

 

 

 

 

 

 

 

 

 

 

714,884

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

65,434

 

 

 

 

 

 

 

 

 

 

 

46,633

 

 

 

 

 

 

 

 

 

Total equity

 

 

644,960

 

 

 

 

 

 

 

 

 

 

 

632,126

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

4,501,760

 

 

 

 

 

 

 

 

 

 

$

4,488,918

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

61,311

 

 

 

 

 

 

 

 

 

 

$

64,881

 

 

 

 

 

Interest spread

 

 

 

 

 

 

 

 

 

 

5.79

%

 

 

 

 

 

 

 

 

 

 

6.00

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

6.15

%

 

 

 

 

 

 

 

 

 

 

6.34

%

 

 


10

 

Metrics and non-GAAP financial reconciliation:

 

As of and for the Three Months Ended

 

(Dollars in thousands,

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

except per share amounts)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

Net income available to common stockholders

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

12,192

 

 

$

11,878

 

Gain on sale of subsidiary

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,071

)

Transaction related costs

 

 

—

 

 

 

—

 

 

 

5,871

 

 

 

1,094

 

 

 

—

 

Tax effect of adjustments

 

 

—

 

 

 

—

 

 

 

(1,392

)

 

 

(257

)

 

 

248

 

Adjusted net income available to common stockholders

 

$

14,788

 

 

$

18,085

 

 

$

13,454

 

 

$

13,029

 

 

$

11,055

 

Dilutive effect of convertible preferred stock

 

 

—

 

 

 

—

 

 

 

195

 

 

 

193

 

 

 

190

 

Adjusted net income available to common stockholders - diluted

 

$

14,788

 

 

$

18,085

 

 

$

13,649

 

 

$

13,222

 

 

$

11,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

 

26,793,685

 

 

 

26,979,949

 

 

 

26,991,830

 

 

 

26,315,878

 

 

 

21,560,524

 

Adjusted effects of assumed Preferred Stock conversion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted weighted average shares outstanding - diluted

 

 

26,793,685

 

 

 

26,979,949

 

 

 

26,991,830

 

 

 

26,315,878

 

 

 

21,560,524

 

Adjusted diluted earnings per common share

 

$

0.55

 

 

$

0.67

 

 

$

0.51

 

 

$

0.50

 

 

$

0.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

14,788

 

 

$

18,085

 

 

$

8,975

 

 

$

12,192

 

 

$

11,878

 

Average tangible common equity

 

 

446,571

 

 

 

428,748

 

 

 

470,553

 

 

 

491,492

 

 

 

326,614

 

Return on average tangible common equity

 

 

13.43

%

 

 

16.73

%

 

 

7.57

%

 

 

9.95

%

 

 

14.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted efficiency ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

61,311

 

 

$

64,881

 

 

$

61,782

 

 

$

53,257

 

 

$

47,130

 

Non-interest income

 

 

7,538

 

 

 

6,794

 

 

 

6,059

 

 

 

4,945

 

 

 

5,172

 

Operating revenue

 

 

68,849

 

 

 

71,675

 

 

 

67,841

 

 

 

58,202

 

 

 

52,302

 

Gain on sale of subsidiary

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,071

)

Adjusted operating revenue

 

$

68,849

 

 

$

71,675

 

 

$

67,841

 

 

$

58,202

 

 

$

51,231

 

Non-interest expenses

 

$

48,566

 

 

$

46,962

 

 

$

48,946

 

 

$

37,403

 

 

$

34,042

 

Transaction related costs

 

 

—

 

 

 

—

 

 

 

(5,871

)

 

 

(1,094

)

 

 

—

 

Adjusted non-interest expenses

 

$

48,566

 

 

$

46,962

 

 

$

43,075

 

 

$

36,309

 

 

$

34,042

 

Adjusted efficiency ratio

 

 

70.54

%

 

 

65.52

%

 

 

63.49

%

 

 

62.38

%

 

 

66.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net non-interest expense to average assets ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses

 

$

48,566

 

 

$

46,962

 

 

$

48,946

 

 

$

37,403

 

 

$

34,042

 

Transaction related costs

 

 

—

 

 

 

—

 

 

 

(5,871

)

 

 

(1,094

)

 

 

—

 

Adjusted non-interest expenses

 

$

48,566

 

 

$

46,962

 

 

$

43,075

 

 

$

36,309

 

 

$

34,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income

 

$

7,538

 

 

$

6,794

 

 

$

6,059

 

 

$

4,945

 

 

$

5,172

 

Gain on sale of subsidiary

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,071

)

Adjusted non-interest income

 

$

7,538

 

 

$

6,794

 

 

$

6,059

 

 

$

4,945

 

 

$

4,101

 

Adjusted net non-interest expenses

 

$

41,028

 

 

$

40,168

 

 

$

37,016

 

 

$

31,364

 

 

$

29,941

 

Average total assets

 

$

4,501,760

 

 

$

4,488,918

 

 

$

4,060,560

 

 

$

3,628,960

 

 

$

3,410,883

 

Adjusted net non-interest expense to average assets ratio

 

 

3.70

%

 

 

3.55

%

 

 

3.62

%

 

 

3.47

%

 

 

3.56

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

646,216

 

 

$

636,607

 

 

$

616,641

 

 

$

607,225

 

 

$

402,944

 

Preferred stock liquidation preference

 

 

—

 

 

 

—

 

 

 

(9,658

)

 

 

(9,658

)

 

 

(9,658

)

Total common stockholders' equity

 

 

646,216

 

 

 

636,607

 

 

 

606,983

 

 

 

597,567

 

 

 

393,286

 

Goodwill and other intangibles

 

 

(197,015

)

 

 

(199,417

)

 

 

(201,842

)

 

 

(117,777

)

 

 

(63,923

)

Tangible common stockholders' equity

 

$

449,201

 

 

$

437,190

 

 

$

405,141

 

 

$

479,790

 

 

$

329,363

 

Common shares outstanding

 

 

26,709,411

 

 

 

26,949,936

 

 

 

26,279,761

 

 

 

26,260,785

 

 

 

20,824,509

 

Tangible book value per share

 

$

16.82

 

 

$

16.22

 

 

$

15.42

 

 

$

18.27

 

 

$

15.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets at end of period

 

$

4,529,783

 

 

$

4,559,779

 

 

$

4,537,102

 

 

$

3,794,631

 

 

$

3,405,010

 

Goodwill and other intangibles

 

 

(197,015

)

 

 

(199,417

)

 

 

(201,842

)

 

 

(117,777

)

 

 

(63,923

)

Adjusted total assets at period end

 

$

4,332,768

 

 

$

4,360,362

 

 

$

4,335,260

 

 

$

3,676,854

 

 

$

3,341,087

 

Tangible common stockholders' equity ratio

 

 

10.37

%

 

 

10.03

%

 

 

9.35

%

 

 

13.05

%

 

 

9.86

%

11

 

1)

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

 

 

•

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

 

 

•

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

 

 

•

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

 

 

•

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

 

 

•

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

 

 

•

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

 

 

•

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

 

 

•

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

 

2)

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

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

Loan discount accretion

 

$

1,557

 

 

$

1,411

 

 

$

1,271

 

 

$

3,637

 

 

$

1,977

 

3)

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

 

4)

Current quarter ratios are preliminary.

 


Source: Triumph Bancorp, Inc.

 

###

 

Investor Relations:

Luke Wyse

Senior Vice President, Finance & Investor Relations

lwyse@tbkbank.com

214-365-6936

 

Media Contact:

Amanda Tavackoli

Senior Vice President, Marketing & Communication

atavackoli@tbkbank.com

214-365-6930

12