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

 

Exhibit 99.1

Triumph Bancorp Reports Second Quarter Net Income to Common Stockholders of $13.4 Million

DALLAS – July 20, 2020(GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”) today announced earnings and operating results for the second quarter of 2020.

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.

2020 Second Quarter Highlights

 

•

For the second quarter of 2020, net income available to common stockholders was $13.4 million. Diluted earnings per share were $0.56.  

 

•

Adjusted diluted earnings per share were $0.25 for the quarter ended June 30, 2020, which exclude the gain on sale of Triumph Premium Finance, net of taxes.

 

•

For the quarter ended June 30, 2020, we recorded $13.6 million of total credit loss expense, including $11.0 million of credit loss expense related to our loan portfolio, $0.9 million of credit loss expense related to off balance sheet loan commitments, and $1.7 million of credit loss expense related to held to maturity securities. Regarding the $11.0 million credit loss expense on our loan portfolio:

 

o

Further deterioration in our macroeconomic forecasts to reflect expected economic impact of COVID-19 resulted in approximately $12.2 million of credit loss expense.

 

o

Changes in the volume and mix of our loan portfolio provided a benefit of $4.0 million to credit loss expense. Net charge offs were $1.1 million and the increase in specific reserves was $1.7 million.

 

o

Our ACL as a percentage of loans held for investment increased 20 basis points during the quarter to 1.24% at June 30, 2020.

 

•

As of June 30, 2020, the Company’s balance sheet reflected short-term deferrals on outstanding loan balances of $571.8 million to assist customers impacted by COVID-19.  Modifications related to the COVID-19 pandemic and qualifying under the provisions of Section 4013 of the CARES Act are not considered troubled debt restructurings. As of June 30, 2020, these deferred balances carried accrued interest of $6.0 million.

 

•

As of June 30, 2020, the Company has closed 1,937 PPP loans representing a balance of $219.1 million classified as commercial loans at June 30, 2020. The Company has received approximately $7.3 million in total fees from the SBA, $1.4 million of which were recognized in earnings during the three months ended June 30, 2020. The remaining fees will be amortized over the respective lives of the loans.

 

•

Net interest margin (“NIM”) was 5.11% for the quarter ended June 30, 2020.

 

•

Total loans held for investment increased $72.8 million, or 1.7%, to $4.393 billion at June 30, 2020. Average loans for the quarter increased $363.8 million, or 9.0%, to $4.410 billion.

 

•

The total dollar value of invoices purchased by Triumph Business Capital for the quarter ended June 30, 2020 was $1.238 billion with an average invoice size of $1,524. The transportation average invoice size for the quarter was $1,378.

 

•

For the quarter ended June 30, 2020, TriumphPay processed 767,180 invoices paying 51,331 distinct carriers a total of $667.4 million.

 

•

On June 19, 2020, we issued 45,000 shares of 7.125% Series C Fixed-Rate Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, with a liquidation preference of $1,000 per share through an underwritten public offering of 1,800,000 depository shares, each representing a 1/40th ownership interest in a share of the Series C Preferred Stock. Total gross proceeds from the preferred stock offering were $45.0 million. Net proceeds after underwriting discounts and offering expenses were $42.4 million. The net proceeds will be used for general corporate purposes. This transaction as well as current period earnings improved our capital ratios at June 30, 2020 as compared to the prior quarter.

1

 

 

•

On April 20, 2020, we entered into an agreement to sell the assets (the “Disposal Group”) of Triumph Premium Finance (“TPF”) and exit our premium finance line of business. The transaction closed on June 30, 2020, and the assets of the Disposal Group, consisting primarily of $84.5 million of premium finance loans, were sold for a gain on sale of $9.8 million, or $7.3 million net of taxes.

Balance Sheet

Total loans held for investment increased $72.8 million, or 1.7%, during the second quarter to $4.393 billion at June 30, 2020. The national lending portfolio increased $157.3 million, or 17.3%, to $1,068.9 million, the community banking portfolio increased $76.1 million, or 3.8%, to $2.099 billion, and the commercial finance portfolio decreased $160.6 million, or 11.6%, to $1.225 billion during the quarter.

Total deposits were $4.062 billion at June 30, 2020, an increase of $380.3 million, or 10.3%, in the second quarter of 2020.  Non-interest-bearing deposits accounted for 28% of total deposits and non-time deposits accounted for 68% of total deposits at June 30, 2020.  

Net Interest Income

We earned net interest income for the quarter ended June 30, 2020 of $64.3 million compared to $62.5 million for the quarter ended March 31, 2020.

Yields on loans for the quarter ended June 30, 2020 were down 70 bps from the prior quarter to 6.52%. The average cost of our total deposits was 0.79% for the quarter ended June 30, 2020 compared to 1.05% for the quarter ended March 31, 2020.  

Asset Quality

Non-performing assets were 1.20% of total assets at June 30, 2020 compared to 1.09% of total assets at March 31, 2020.  Approximately 14 basis points of this ratio at June 30, 2020 consists of $8.1 million of held to maturity investments in the subordinated notes of collateralized loan obligation that were placed on nonaccrual during the quarter.

The ratio of past due to total loans decreased to 1.50% at June 30, 2020 from 1.99% at March 31, 2020. We recorded total net charge-offs of $1.1 million, or 0.02% of average loans, for the quarter ended June 30, 2020 compared to net charge-offs of $1.5 million, or 0.04% of average loans, for the quarter ended March 31, 2020.  

Non-Interest Income and Expense

We earned non-interest income for the quarter ended June 30, 2020 of $20.0 million compared to $7.5 million for the quarter ended March 31, 2020. Excluding the gain on sale of TPF, we earned adjusted noninterest income of $10.2 million for the three months ended June 30, 2020.

For the quarter ended June 30, 2020, non-interest expense totaled $52.7 million. Non-interest expense for the quarter ended March 31, 2020 was $54.8 million.

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 Tuesday, July 21, 2020. Todd Ritterbusch, Chief Lending Officer, will also be available for questions.

To participate in the live conference call, please dial 1-855-940-9472 (Canada: 1-855-669-9657) and request to be joined into the Triumph Bancorp, Inc. call.  A simultaneous audio-only webcast may be accessed via the Company's website at www.triumphbancorp.com through the Investor Relations, News & Events, Webcasts and Presentations links, or through a direct link here at: https://services.choruscall.com/links/tbk200721.html. An archive of this conference call will subsequently be available at this same location on the Company’s website.

2

 

About Triumph

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

Forward-Looking Statements

This press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; the impact of COVID-19 on our business, including the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on the United States economy (including, without limitation, the CARES Act), and the resulting effect of all of such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; changes in management personnel; interest rate risk; concentration of our products and 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; risks related to the integration of acquired businesses and any future acquisitions; our ability to successfully identify and address the risks associated with our possible future acquisitions, and the risks that our prior and possible future acquisitions make it more difficult for investors to evaluate our business, financial condition and results of operations, and impairs our ability to accurately forecast our future performance; 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 FDIC, 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 11, 2020 and its Quarterly Report on Form 10-Q, filed with the SEC on April 21, 2020.

3

 

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.


4

 

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

 

As of and for the Three Months Ended

 

 

As of and for the Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(Dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

Financial Highlights:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,617,493

 

 

$

5,353,729

 

 

$

5,060,297

 

 

$

5,039,697

 

 

$

4,783,189

 

 

$

5,617,493

 

 

$

4,783,189

 

Loans held for investment

 

$

4,393,311

 

 

$

4,320,548

 

 

$

4,194,512

 

 

$

4,209,417

 

 

$

3,835,903

 

 

$

4,393,311

 

 

$

3,835,903

 

Deposits

 

$

4,062,332

 

 

$

3,682,015

 

 

$

3,789,906

 

 

$

3,697,833

 

 

$

3,658,978

 

 

$

4,062,332

 

 

$

3,658,978

 

Net income available to common stockholders

 

$

13,440

 

 

$

(4,450

)

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

8,990

 

 

$

27,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios - Annualized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.99

%

 

 

(0.36

%)

 

 

1.31

%

 

 

1.17

%

 

 

1.09

%

 

 

0.35

%

 

 

1.21

%

Return on average total equity

 

 

8.86

%

 

 

(2.85

%)

 

 

10.24

%

 

 

8.79

%

 

 

7.83

%

 

 

2.92

%

 

 

8.55

%

Return on average common equity

 

 

8.94

%

 

 

(2.85

%)

 

 

10.24

%

 

 

8.79

%

 

 

7.83

%

 

 

2.94

%

 

 

8.55

%

Return on average tangible common equity (1)

 

 

12.96

%

 

 

(4.09

%)

 

 

14.54

%

 

 

12.56

%

 

 

11.19

%

 

 

4.23

%

 

 

12.29

%

Yield on loans(2)

 

 

6.52

%

 

 

7.22

%

 

 

7.48

%

 

 

7.63

%

 

 

7.95

%

 

 

6.85

%

 

 

7.97

%

Cost of interest bearing deposits

 

 

1.08

%

 

 

1.34

%

 

 

1.45

%

 

 

1.49

%

 

 

1.42

%

 

 

1.21

%

 

 

1.33

%

Cost of total deposits

 

 

0.79

%

 

 

1.05

%

 

 

1.15

%

 

 

1.19

%

 

 

1.14

%

 

 

0.92

%

 

 

1.07

%

Cost of total funds

 

 

0.85

%

 

 

1.23

%

 

 

1.35

%

 

 

1.41

%

 

 

1.40

%

 

 

1.03

%

 

 

1.34

%

Net interest margin(2)

 

 

5.11

%

 

 

5.63

%

 

 

5.72

%

 

 

5.85

%

 

 

5.99

%

 

 

5.36

%

 

 

6.07

%

Net non-interest expense to average assets

 

 

2.40

%

 

 

3.88

%

 

 

3.46

%

 

 

3.64

%

 

 

3.68

%

 

 

3.09

%

 

 

3.69

%

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

 

 

3.11

%

 

 

3.88

%

 

 

3.46

%

 

 

3.64

%

 

 

3.68

%

 

 

3.47

%

 

 

3.69

%

Efficiency ratio

 

 

62.56

%

 

 

78.24

%

 

 

70.15

%

 

 

71.93

%

 

 

71.37

%

 

 

69.68

%

 

 

70.96

%

Adjusted efficiency ratio (1)

 

 

70.75

%

 

 

78.24

%

 

 

70.15

%

 

 

71.93

%

 

 

71.37

%

 

 

74.38

%

 

 

70.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due to total loans(4)

 

 

1.50

%

 

 

1.99

%

 

 

1.74

%

 

 

1.91

%

 

 

1.60

%

 

 

1.50

%

 

 

1.60

%

Non-performing loans to total loans

 

 

1.27

%

 

 

1.26

%

 

 

0.97

%

 

 

1.00

%

 

 

0.96

%

 

 

1.27

%

 

 

0.96

%

Non-performing assets to total assets

 

 

1.20

%

 

 

1.09

%

 

 

0.87

%

 

 

0.91

%

 

 

0.86

%

 

 

1.20

%

 

 

0.86

%

ACL to non-performing loans(5)

 

 

97.66

%

 

 

82.37

%

 

 

71.63

%

 

 

75.58

%

 

 

79.91

%

 

 

97.66

%

 

 

79.91

%

ACL to total loans(5)

 

 

1.24

%

 

 

1.04

%

 

 

0.69

%

 

 

0.76

%

 

 

0.77

%

 

 

1.24

%

 

 

0.77

%

Net charge-offs to average loans

 

 

0.02

%

 

 

0.04

%

 

 

0.08

%

 

 

0.01

%

 

 

0.05

%

 

 

0.06

%

 

 

0.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital to average assets(6)

 

 

9.98

%

 

 

9.62

%

 

 

10.03

%

 

 

10.37

%

 

 

10.84

%

 

 

9.98

%

 

 

10.84

%

Tier 1 capital to risk-weighted assets(6)

 

 

10.57

%

 

 

9.03

%

 

 

10.29

%

 

 

10.08

%

 

 

11.08

%

 

 

10.57

%

 

 

11.08

%

Common equity tier 1 capital to risk-weighted assets(6)

 

 

8.84

%

 

 

8.24

%

 

 

9.46

%

 

 

9.26

%

 

 

10.19

%

 

 

8.84

%

 

 

10.19

%

Total capital to risk-weighted assets(5)

 

 

13.44

%

 

 

11.63

%

 

 

12.76

%

 

 

11.79

%

 

 

12.88

%

 

 

13.44

%

 

 

12.88

%

Total equity to total assets

 

 

11.69

%

 

 

11.01

%

 

 

12.58

%

 

 

12.57

%

 

 

13.45

%

 

 

11.69

%

 

 

13.45

%

Tangible common stockholders' equity to tangible assets(1)

 

 

7.84

%

 

 

7.77

%

 

 

9.16

%

 

 

9.10

%

 

 

9.78

%

 

 

7.84

%

 

 

9.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

25.28

 

 

$

24.45

 

 

$

25.50

 

 

$

24.99

 

 

$

24.56

 

 

$

25.28

 

 

$

24.56

 

Tangible book value per share (1)

 

$

17.59

 

 

$

16.64

 

 

$

17.88

 

 

$

17.40

 

 

$

17.13

 

 

$

17.59

 

 

$

17.13

 

Basic earnings (loss) per common share

 

$

0.56

 

 

$

(0.18

)

 

$

0.67

 

 

$

0.56

 

 

$

0.48

 

 

$

0.37

 

 

$

1.04

 

Diluted earnings (loss) per common share

 

$

0.56

 

 

$

(0.18

)

 

$

0.66

 

 

$

0.56

 

 

$

0.48

 

 

$

0.37

 

 

$

1.03

 

Adjusted diluted earnings per common share(1)

 

$

0.25

 

 

$

(0.18

)

 

$

0.66

 

 

$

0.56

 

 

$

0.48

 

 

$

0.07

 

 

$

1.03

 

Shares outstanding end of period

 

 

24,202,686

 

 

 

24,101,120

 

 

 

24,964,961

 

 

 

25,357,985

 

 

 

26,198,308

 

 

 

24,202,686

 

 

 

26,198,308

 



5

 

Unaudited consolidated balance sheet as of:

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

(Dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

 

$

437,064

 

 

$

208,414

 

 

$

197,880

 

 

$

115,043

 

 

$

209,305

 

Securities - available for sale

 

 

331,126

 

 

 

302,122

 

 

 

248,820

 

 

 

302,917

 

 

 

329,991

 

Securities - held to maturity

 

 

6,285

 

 

 

8,217

 

 

 

8,417

 

 

 

8,517

 

 

 

8,573

 

Equity securities

 

 

6,411

 

 

 

5,678

 

 

 

5,437

 

 

 

5,543

 

 

 

5,479

 

Loans held for sale

 

 

50,382

 

 

 

4,431

 

 

 

2,735

 

 

 

7,499

 

 

 

2,877

 

Loans held for investment

 

 

4,393,311

 

 

 

4,320,548

 

 

 

4,194,512

 

 

 

4,209,417

 

 

 

3,835,903

 

Allowance for credit losses

 

 

(54,613

)

 

 

(44,732

)

 

 

(29,092

)

 

 

(31,895

)

 

 

(29,416

)

Loans, net

 

 

4,338,698

 

 

 

4,275,816

 

 

 

4,165,420

 

 

 

4,177,522

 

 

 

3,806,487

 

Assets held for sale

 

 

—

 

 

 

97,895

 

 

 

—

 

 

 

—

 

 

 

—

 

FHLB and other restricted stock

 

 

26,345

 

 

 

37,080

 

 

 

19,860

 

 

 

23,960

 

 

 

18,037

 

Premises and equipment, net

 

 

107,736

 

 

 

98,363

 

 

 

96,595

 

 

 

87,112

 

 

 

84,998

 

Other real estate owned ("OREO"), net

 

 

1,962

 

 

 

2,540

 

 

 

3,009

 

 

 

2,849

 

 

 

3,351

 

Goodwill and intangible assets, net

 

 

186,162

 

 

 

188,208

 

 

 

190,286

 

 

 

192,440

 

 

 

194,668

 

Bank-owned life insurance

 

 

41,298

 

 

 

41,122

 

 

 

40,954

 

 

 

40,724

 

 

 

40,847

 

Deferred tax asset, net

 

 

8,544

 

 

 

9,457

 

 

 

3,812

 

 

 

5,971

 

 

 

7,278

 

Other assets

 

 

75,480

 

 

 

74,386

 

 

 

77,072

 

 

 

69,600

 

 

 

71,298

 

Total assets

 

$

5,617,493

 

 

$

5,353,729

 

 

$

5,060,297

 

 

$

5,039,697

 

 

$

4,783,189

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

1,120,949

 

 

$

846,412

 

 

$

809,696

 

 

$

754,233

 

 

$

684,223

 

Interest bearing deposits

 

 

2,941,383

 

 

 

2,835,603

 

 

 

2,980,210

 

 

 

2,943,600

 

 

 

2,974,755

 

Total deposits

 

 

4,062,332

 

 

 

3,682,015

 

 

 

3,789,906

 

 

 

3,697,833

 

 

 

3,658,978

 

Customer repurchase agreements

 

 

6,732

 

 

 

3,693

 

 

 

2,033

 

 

 

14,124

 

 

 

12,788

 

Federal Home Loan Bank advances

 

 

455,000

 

 

 

850,000

 

 

 

430,000

 

 

 

530,000

 

 

 

305,000

 

Payment Protection Program Liquidity Facility

 

 

223,809

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Subordinated notes

 

 

87,402

 

 

 

87,347

 

 

 

87,327

 

 

 

49,010

 

 

 

48,983

 

Junior subordinated debentures

 

 

39,816

 

 

 

39,689

 

 

 

39,566

 

 

 

39,443

 

 

 

39,320

 

Other liabilities

 

 

85,531

 

 

 

101,638

 

 

 

74,875

 

 

 

75,594

 

 

 

74,758

 

Total liabilities

 

 

4,960,622

 

 

 

4,764,382

 

 

 

4,423,707

 

 

 

4,406,004

 

 

 

4,139,827

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

 

45,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common stock

 

 

273

 

 

 

272

 

 

 

272

 

 

 

272

 

 

 

271

 

Additional paid-in-capital

 

 

472,795

 

 

 

474,441

 

 

 

473,251

 

 

 

472,368

 

 

 

471,145

 

Treasury stock, at cost

 

 

(102,888

)

 

 

(102,677

)

 

 

(67,069

)

 

 

(52,632

)

 

 

(27,468

)

Retained earnings

 

 

236,249

 

 

 

222,809

 

 

 

229,030

 

 

 

212,321

 

 

 

198,004

 

Accumulated other comprehensive income (loss)

 

 

5,442

 

 

 

(5,498

)

 

 

1,106

 

 

 

1,364

 

 

 

1,410

 

Total stockholders' equity

 

 

656,871

 

 

 

589,347

 

 

 

636,590

 

 

 

633,693

 

 

 

643,362

 

Total liabilities and equity

 

$

5,617,493

 

 

$

5,353,729

 

 

$

5,060,297

 

 

$

5,039,697

 

 

$

4,783,189

 


6

 

Unaudited consolidated statement of income:

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(Dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

50,394

 

 

$

48,323

 

 

$

52,395

 

 

$

50,249

 

 

$

47,910

 

 

$

98,717

 

 

$

93,004

 

Factored receivables, including fees

 

 

21,101

 

 

 

24,292

 

 

 

25,573

 

 

 

25,570

 

 

 

25,558

 

 

 

45,393

 

 

 

50,114

 

Securities

 

 

2,676

 

 

 

2,107

 

 

 

2,379

 

 

 

2,784

 

 

 

2,667

 

 

 

4,783

 

 

 

5,311

 

FHLB and other restricted stock

 

 

148

 

 

 

204

 

 

 

165

 

 

 

209

 

 

 

146

 

 

 

352

 

 

 

338

 

Cash deposits

 

 

79

 

 

 

488

 

 

 

659

 

 

 

603

 

 

 

1,022

 

 

 

567

 

 

 

1,800

 

Total interest income

 

 

74,398

 

 

 

75,414

 

 

 

81,171

 

 

 

79,415

 

 

 

77,303

 

 

 

149,812

 

 

 

150,567

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

7,584

 

 

 

9,677

 

 

 

10,961

 

 

 

11,036

 

 

 

10,010

 

 

 

17,261

 

 

 

18,228

 

Subordinated notes

 

 

1,321

 

 

 

1,347

 

 

 

1,035

 

 

 

840

 

 

 

839

 

 

 

2,668

 

 

 

1,678

 

Junior subordinated debentures

 

 

554

 

 

 

646

 

 

 

687

 

 

 

719

 

 

 

744

 

 

 

1,200

 

 

 

1,504

 

Other borrowings

 

 

688

 

 

 

1,244

 

 

 

2,080

 

 

 

2,055

 

 

 

2,291

 

 

 

1,932

 

 

 

4,427

 

Total interest expense

 

 

10,147

 

 

 

12,914

 

 

 

14,763

 

 

 

14,650

 

 

 

13,884

 

 

 

23,061

 

 

 

25,837

 

Net interest income

 

 

64,251

 

 

 

62,500

 

 

 

66,408

 

 

 

64,765

 

 

 

63,419

 

 

 

126,751

 

 

 

124,730

 

Credit loss expense

 

 

13,609

 

 

 

20,298

 

 

 

382

 

 

 

2,865

 

 

 

3,681

 

 

 

33,907

 

 

 

4,695

 

Net interest income after credit loss expense

 

 

50,642

 

 

 

42,202

 

 

 

66,026

 

 

 

61,900

 

 

 

59,738

 

 

 

92,844

 

 

 

120,035

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

573

 

 

 

1,588

 

 

 

1,889

 

 

 

1,937

 

 

 

1,700

 

 

 

2,161

 

 

 

3,306

 

Card income

 

 

1,941

 

 

 

1,800

 

 

 

1,943

 

 

 

2,015

 

 

 

2,071

 

 

 

3,741

 

 

 

3,915

 

Net OREO gains (losses) and valuation adjustments

 

 

(101

)

 

 

(257

)

 

 

50

 

 

 

(56

)

 

 

148

 

 

 

(358

)

 

 

357

 

Net gains (losses) on sale of securities

 

 

63

 

 

 

38

 

 

 

39

 

 

 

19

 

 

 

14

 

 

 

101

 

 

 

3

 

Fee income

 

 

1,304

 

 

 

1,686

 

 

 

1,686

 

 

 

1,624

 

 

 

1,519

 

 

 

2,990

 

 

 

3,131

 

Insurance commissions

 

 

864

 

 

 

1,051

 

 

 

1,092

 

 

 

1,247

 

 

 

961

 

 

 

1,915

 

 

 

1,880

 

Gain on sale of subsidiary

 

 

9,758

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,758

 

 

 

—

 

Other

 

 

5,627

 

 

 

1,571

 

 

 

1,967

 

 

 

956

 

 

 

1,210

 

 

 

7,198

 

 

 

2,569

 

Total non-interest income

 

 

20,029

 

 

 

7,477

 

 

 

8,666

 

 

 

7,742

 

 

 

7,623

 

 

 

27,506

 

 

 

15,161

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

30,804

 

 

 

30,722

 

 

 

29,586

 

 

 

28,717

 

 

 

28,120

 

 

 

61,526

 

 

 

54,559

 

Occupancy, furniture and equipment

 

 

4,964

 

 

 

5,182

 

 

 

4,667

 

 

 

4,505

 

 

 

4,502

 

 

 

10,146

 

 

 

9,024

 

FDIC insurance and other regulatory assessments

 

 

495

 

 

 

315

 

 

 

(302

)

 

 

(2

)

 

 

303

 

 

 

810

 

 

 

602

 

Professional fees

 

 

1,651

 

 

 

2,107

 

 

 

1,904

 

 

 

1,969

 

 

 

1,550

 

 

 

3,758

 

 

 

3,415

 

Amortization of intangible assets

 

 

2,046

 

 

 

2,078

 

 

 

2,154

 

 

 

2,228

 

 

 

2,347

 

 

 

4,124

 

 

 

4,749

 

Advertising and promotion

 

 

1,151

 

 

 

1,292

 

 

 

1,347

 

 

 

1,379

 

 

 

1,796

 

 

 

2,443

 

 

 

3,400

 

Communications and technology

 

 

5,444

 

 

 

5,501

 

 

 

5,732

 

 

 

5,382

 

 

 

4,988

 

 

 

10,945

 

 

 

9,862

 

Other

 

 

6,171

 

 

 

7,556

 

 

 

7,573

 

 

 

7,975

 

 

 

7,098

 

 

 

13,727

 

 

 

13,659

 

Total non-interest expense

 

 

52,726

 

 

 

54,753

 

 

 

52,661

 

 

 

52,153

 

 

 

50,704

 

 

 

107,479

 

 

 

99,270

 

Net income (loss) before income tax

 

 

17,945

 

 

 

(5,074

)

 

 

22,031

 

 

 

17,489

 

 

 

16,657

 

 

 

12,871

 

 

 

35,926

 

Income tax expense (benefit)

 

 

4,505

 

 

 

(624

)

 

 

5,322

 

 

 

3,172

 

 

 

3,927

 

 

 

3,881

 

 

 

8,408

 

Net income (loss)

 

$

13,440

 

 

$

(4,450

)

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

8,990

 

 

$

27,518

 

 


7

 

Earnings per share:

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(Dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) to common stockholders

 

$

13,440

 

 

$

(4,450

)

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

8,990

 

 

$

27,518

 

Weighted average common shares outstanding

 

 

23,987,049

 

 

 

24,314,329

 

 

 

25,089,447

 

 

 

25,621,054

 

 

 

26,396,351

 

 

 

24,150,689

 

 

 

26,537,255

 

Basic earnings (loss) per common share

 

$

0.56

 

 

$

(0.18

)

 

$

0.67

 

 

$

0.56

 

 

$

0.48

 

 

$

0.37

 

 

$

1.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) to common stockholders - diluted

 

$

13,440

 

 

$

(4,450

)

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

8,990

 

 

$

27,518

 

Weighted average common shares outstanding

 

 

23,987,049

 

 

 

24,314,329

 

 

 

25,089,447

 

 

 

25,621,054

 

 

 

26,396,351

 

 

 

24,150,689

 

 

 

26,537,255

 

Dilutive effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assumed exercises of stock options

 

 

38,627

 

 

 

—

 

 

 

69,865

 

 

 

60,068

 

 

 

59,962

 

 

 

55,753

 

 

 

61,819

 

Restricted stock awards

 

 

37,751

 

 

 

—

 

 

 

70,483

 

 

 

45,631

 

 

 

30,110

 

 

 

66,364

 

 

 

39,352

 

Restricted stock units

 

 

4,689

 

 

 

—

 

 

 

13,264

 

 

 

3,045

 

 

 

—

 

 

 

13,255

 

 

 

—

 

Performance stock units - market based

 

 

6,326

 

 

 

—

 

 

 

11,803

 

 

 

4,673

 

 

 

—

 

 

 

8,446

 

 

 

—

 

Performance stock units - performance based

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Weighted average shares outstanding - diluted

 

 

24,074,442

 

 

 

24,314,329

 

 

 

25,254,862

 

 

 

25,734,471

 

 

 

26,486,423

 

 

 

24,294,507

 

 

 

26,638,426

 

Diluted earnings (loss) per common share

 

$

0.56

 

 

$

(0.18

)

 

$

0.66

 

 

$

0.56

 

 

$

0.48

 

 

$

0.37

 

 

$

1.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

Stock options

 

 

148,528

 

 

 

225,055

 

 

 

66,019

 

 

 

67,023

 

 

 

70,037

 

 

 

98,956

 

 

 

70,037

 

Restricted stock awards

 

 

109,834

 

 

 

147,748

 

 

 

—

 

 

 

3,209

 

 

 

—

 

 

 

—

 

 

 

—

 

Restricted stock units

 

 

38,801

 

 

 

55,228

 

 

 

—

 

 

 

—

 

 

 

58,400

 

 

 

—

 

 

 

58,400

 

Performance stock units - market based

 

 

76,461

 

 

 

67,707

 

 

 

55,228

 

 

 

55,228

 

 

 

70,879

 

 

 

76,461

 

 

 

70,879

 

Performance stock units - performance based

 

 

262,625

 

 

 

254,000

 

 

 

254,000

 

 

 

—

 

 

 

—

 

 

 

262,625

 

 

 

—

 

 

 


8

 

Loans held for investment summarized as of:

  

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

(Dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

Commercial real estate

 

$

910,261

 

 

$

985,757

 

 

$

1,046,961

 

 

$

1,115,559

 

 

$

1,098,279

 

Construction, land development, land

 

 

213,617

 

 

 

198,050

 

 

 

160,569

 

 

 

164,186

 

 

 

157,861

 

1-4 family residential properties

 

 

168,707

 

 

 

169,703

 

 

 

179,425

 

 

 

186,405

 

 

 

186,070

 

Farmland

 

 

125,259

 

 

 

133,579

 

 

 

154,975

 

 

 

161,447

 

 

 

144,594

 

Commercial

 

 

1,518,656

 

 

 

1,412,822

 

 

 

1,342,683

 

 

 

1,369,505

 

 

 

1,257,330

 

Factored receivables

 

 

561,576

 

 

 

661,100

 

 

 

619,986

 

 

 

599,651

 

 

 

583,131

 

Consumer

 

 

18,450

 

 

 

20,326

 

 

 

21,925

 

 

 

24,967

 

 

 

26,048

 

Mortgage warehouse

 

 

876,785

 

 

 

739,211

 

 

 

667,988

 

 

 

587,697

 

 

 

382,590

 

     Total loans

 

$

4,393,311

 

 

$

4,320,548

 

 

$

4,194,512

 

 

$

4,209,417

 

 

$

3,835,903

 

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

Commercial finance loans are further summarized below:

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

(Dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

Commercial - Equipment

 

$

487,145

 

 

$

479,483

 

 

$

461,555

 

 

$

429,412

 

 

$

395,094

 

Commercial - Asset-based lending

 

 

176,235

 

 

 

245,001

 

 

 

168,955

 

 

 

247,026

 

 

 

208,896

 

Factored receivables

 

 

561,576

 

 

 

661,100

 

 

 

619,986

 

 

 

599,651

 

 

 

583,131

 

     Commercial finance

 

$

1,224,956

 

 

$

1,385,584

 

 

$

1,250,496

 

 

$

1,276,089

 

 

$

1,187,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial finance % of total loans

 

 

28

%

 

 

32

%

 

 

30

%

 

 

30

%

 

 

31

%

National lending loans are further summarized below:

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

(Dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

Mortgage warehouse

 

$

876,785

 

 

$

739,211

 

 

$

667,988

 

 

$

587,697

 

 

$

382,590

 

Commercial - Liquid credit

 

 

192,118

 

 

 

172,380

 

 

 

81,353

 

 

 

37,386

 

 

 

21,758

 

Commercial - Premium finance

 

 

—

 

 

 

—

 

 

 

101,015

 

 

 

101,562

 

 

 

72,898

 

National lending

 

$

1,068,903

 

 

$

911,591

 

 

$

850,356

 

 

$

726,645

 

 

$

477,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

National lending % of total loans

 

 

24

%

 

 

21

%

 

 

20

%

 

 

17

%

 

 

12

%

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

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

(Dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

Average community banking

 

$

2,111,615

 

 

$

2,041,256

 

 

$

2,170,149

 

 

$

2,193,533

 

 

$

2,166,122

 

Average commercial finance

 

 

1,259,584

 

 

 

1,292,749

 

 

 

1,260,000

 

 

 

1,208,823

 

 

 

1,168,110

 

Average national lending

 

 

1,038,476

 

 

 

711,837

 

 

 

704,244

 

 

 

541,367

 

 

 

373,755

 

Average total loans

 

$

4,409,675

 

 

$

4,045,842

 

 

$

4,134,393

 

 

$

3,943,723

 

 

$

3,707,987

 

Community banking yield

 

 

5.23

%

 

 

5.67

%

 

 

5.89

%

 

 

5.79

%

 

 

5.88

%

Commercial finance yield

 

 

10.21

%

 

 

11.00

%

 

 

11.64

%

 

 

12.31

%

 

 

12.52

%

National lending yield

 

 

4.67

%

 

 

4.80

%

 

 

4.96

%

 

 

4.63

%

 

 

5.62

%

Total loan yield

 

 

6.52

%

 

 

7.22

%

 

 

7.48

%

 

 

7.63

%

 

 

7.95

%

9

 

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:

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

Factored receivable period end balance

 

$

528,379,000

 

 

$

641,366,000

 

 

$

573,372,000

 

 

$

562,009,000

 

 

$

544,601,000

 

Yield on average receivable balance

 

 

15.48

%

 

 

16.13

%

 

 

17.20

%

 

 

18.23

%

 

 

18.73

%

Rolling twelve quarter annual charge-off rate

 

 

0.43

%

 

 

0.42

%

 

 

0.39

%

 

 

0.36

%

 

 

0.40

%

Factored receivables - transportation concentration

 

 

85

%

 

 

80

%

 

 

81

%

 

 

83

%

 

 

83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, including fees

 

$

20,387,000

 

 

$

23,497,000

 

 

$

24,813,000

 

 

$

24,869,000

 

 

$

24,762,000

 

Non-interest income

 

 

1,072,000

 

 

 

1,296,000

 

 

 

1,154,000

 

 

 

1,291,000

 

 

 

1,205,000

 

Factored receivable total revenue

 

 

21,459,000

 

 

 

24,793,000

 

 

 

25,967,000

 

 

 

26,160,000

 

 

 

25,967,000

 

Average net funds employed

 

 

477,112,000

 

 

 

537,138,000

 

 

 

524,546,000

 

 

 

494,198,000

 

 

 

483,203,000

 

Yield on average net funds employed

 

 

18.09

%

 

 

18.56

%

 

 

19.64

%

 

 

21.00

%

 

 

21.55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable purchased

 

$

1,238,465,000

 

 

$

1,450,618,000

 

 

$

1,489,538,000

 

 

$

1,450,905,000

 

 

$

1,408,982,000

 

Number of invoices purchased

 

 

812,902

 

 

 

878,767

 

 

 

896,487

 

 

 

890,986

 

 

 

874,248

 

Average invoice size

 

$

1,524

 

 

$

1,651

 

 

$

1,662

 

 

$

1,628

 

 

$

1,612

 

Average invoice size - transportation

 

$

1,378

 

 

$

1,481

 

 

$

1,507

 

 

$

1,497

 

 

$

1,492

 

Average invoice size - non-transportation

 

$

4,486

 

 

$

4,061

 

 

$

3,891

 

 

$

3,467

 

 

$

3,047

 

Deposits summarized as of:

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

(Dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

Non-interest bearing demand

 

$

1,120,949

 

 

$

846,412

 

 

$

809,696

 

 

$

754,233

 

 

$

684,223

 

 

Interest bearing demand

 

 

648,309

 

 

 

583,445

 

 

 

580,323

 

 

 

587,123

 

 

 

587,164

 

 

Individual retirement accounts

 

 

97,388

 

 

 

101,743

 

 

 

104,472

 

 

 

108,593

 

 

 

111,328

 

 

Money market

 

 

397,914

 

 

 

412,376

 

 

 

497,105

 

 

 

424,162

 

 

 

440,289

 

 

Savings

 

 

391,624

 

 

 

367,163

 

 

 

363,270

 

 

 

356,368

 

 

 

362,594

 

 

Certificates of deposit

 

 

937,766

 

 

 

1,056,012

 

 

 

1,084,425

 

 

 

1,120,850

 

 

 

1,122,873

 

 

Brokered time deposits

 

 

258,378

 

 

 

314,864

 

 

 

350,615

 

 

 

346,504

 

 

 

350,507

 

 

Other brokered deposits

 

 

210,004

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

     Total deposits

 

$

4,062,332

 

 

$

3,682,015

 

 

$

3,789,906

 

 

$

3,697,833

 

 

$

3,658,978

 

 

10

 

Net interest margin summarized for the three months ended:

 

June 30, 2020

 

 

March 31, 2020

 

 

 

Average

 

 

 

 

 

 

Average

 

 

Average

 

 

 

 

 

 

Average

 

(Dollars in thousands)

 

Balance

 

 

Interest

 

 

Rate

 

 

Balance

 

 

Interest

 

 

Rate

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning cash balances

 

$

262,615

 

 

$

79

 

 

 

0.12

%

 

$

141,123

 

 

$

488

 

 

 

1.39

%

Taxable securities

 

 

303,519

 

 

 

2,400

 

 

 

3.18

%

 

 

228,996

 

 

 

1,955

 

 

 

3.43

%

Tax-exempt securities

 

 

43,796

 

 

 

276

 

 

 

2.53

%

 

 

25,925

 

 

 

152

 

 

 

2.36

%

FHLB and other restricted stock

 

 

36,375

 

 

 

148

 

 

 

1.64

%

 

 

21,098

 

 

 

204

 

 

 

3.89

%

Loans

 

 

4,409,675

 

 

 

71,495

 

 

 

6.52

%

 

 

4,045,842

 

 

 

72,615

 

 

 

7.22

%

     Total interest earning assets

 

$

5,055,980

 

 

$

74,398

 

 

 

5.92

%

 

$

4,462,984

 

 

$

75,414

 

 

 

6.80

%

Non-interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

431,092

 

 

 

 

 

 

 

 

 

 

 

443,563

 

 

 

 

 

 

 

 

 

          Total assets

 

$

5,487,072

 

 

 

 

 

 

 

 

 

 

$

4,906,547

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand

 

$

630,023

 

 

$

287

 

 

 

0.18

%

 

$

586,671

 

 

$

344

 

 

 

0.24

%

Individual retirement accounts

 

 

100,211

 

 

 

359

 

 

 

1.44

%

 

 

103,351

 

 

 

402

 

 

 

1.56

%

Money market

 

 

398,276

 

 

 

363

 

 

 

0.37

%

 

 

441,815

 

 

 

1,031

 

 

 

0.94

%

Savings

 

 

382,521

 

 

 

144

 

 

 

0.15

%

 

 

363,888

 

 

 

124

 

 

 

0.14

%

Certificates of deposit

 

 

1,008,644

 

 

 

5,055

 

 

 

2.02

%

 

 

1,068,023

 

 

 

6,006

 

 

 

2.26

%

Brokered time deposits

 

 

301,262

 

 

 

1,374

 

 

 

1.83

%

 

 

344,847

 

 

 

1,770

 

 

 

2.06

%

Other brokered deposits

 

 

4,670

 

 

 

2

 

 

 

0.17

%

 

 

—

 

 

 

—

 

 

 

—

 

     Total interest bearing deposits

 

 

2,825,607

 

 

 

7,584

 

 

 

1.08

%

 

 

2,908,595

 

 

 

9,677

 

 

 

1.34

%

Federal Home Loan Bank advances

 

 

678,225

 

 

 

572

 

 

 

0.34

%

 

 

359,286

 

 

 

1,243

 

 

 

1.39

%

Subordinated notes

 

 

87,368

 

 

 

1,321

 

 

 

6.08

%

 

 

87,323

 

 

 

1,347

 

 

 

6.20

%

Junior subordinated debentures

 

 

39,745

 

 

 

554

 

 

 

5.61

%

 

 

39,609

 

 

 

646

 

 

 

6.56

%

Other borrowings

 

 

137,045

 

 

 

116

 

 

 

0.34

%

 

 

2,710

 

 

 

1

 

 

 

0.15

%

     Total interest bearing liabilities

 

$

3,767,990

 

 

$

10,147

 

 

 

1.08

%

 

$

3,397,523

 

 

$

12,914

 

 

 

1.53

%

Non-interest bearing liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

 

1,038,979

 

 

 

 

 

 

 

 

 

 

 

810,654

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

69,845

 

 

 

 

 

 

 

 

 

 

 

71,001

 

 

 

 

 

 

 

 

 

Total equity

 

 

610,258

 

 

 

 

 

 

 

 

 

 

 

627,369

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

5,487,072

 

 

 

 

 

 

 

 

 

 

$

4,906,547

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

64,251

 

 

 

 

 

 

 

 

 

 

$

62,500

 

 

 

 

 

Interest spread

 

 

 

 

 

 

 

 

 

 

4.84

%

 

 

 

 

 

 

 

 

 

 

5.27

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

5.11

%

 

 

 

 

 

 

 

 

 

 

5.63

%

Loan balance totals include respective nonaccrual assets.

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

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

Average rates have been annualized.

 


11

 

Metrics and non-GAAP financial reconciliation:

 

As of and for the Three Months Ended

 

 

As of and for the Six Months Ended

 

(Dollars in thousands,

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

except per share amounts)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

Net income available to common stockholders

 

$

13,440

 

 

$

(4,450

)

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

8,990

 

 

$

27,518

 

Gain on sale of subsidiary or division

 

 

(9,758

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(9,758

)

 

 

—

 

Tax effect of adjustments

 

 

2,451

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,451

 

 

 

—

 

Adjusted net income available to common stockholders - diluted

 

$

6,133

 

 

$

(4,450

)

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

1,683

 

 

$

27,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

 

24,074,442

 

 

 

24,314,329

 

 

 

25,254,862

 

 

 

25,734,471

 

 

 

26,486,423

 

 

 

24,294,507

 

 

 

26,638,426

 

Adjusted diluted earnings per common share

 

$

0.25

 

 

$

(0.18

)

 

$

0.66

 

 

$

0.56

 

 

$

0.48

 

 

$

0.07

 

 

$

1.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

$

610,258

 

 

$

627,369

 

 

$

647,546

 

 

$

646,041

 

 

$

652,347

 

 

$

618,808

 

 

$

648,674

 

Average preferred stock liquidation preference

 

 

(5,934

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,967

)

 

 

—

 

Average total common stockholders' equity

 

 

604,324

 

 

 

627,369

 

 

 

647,546

 

 

 

646,041

 

 

 

652,347

 

 

 

615,841

 

 

 

648,674

 

Average goodwill and other intangibles

 

 

(187,255

)

 

 

(189,359

)

 

 

(191,551

)

 

 

(193,765

)

 

 

(196,001

)

 

 

(188,307

)

 

 

(197,189

)

Average tangible common stockholders' equity

 

$

417,069

 

 

$

438,010

 

 

$

455,995

 

 

$

452,276

 

 

$

456,346

 

 

$

427,534

 

 

$

451,485

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

13,440

 

 

$

(4,450

)

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

8,990

 

 

$

27,518

 

Average tangible common equity

 

 

417,069

 

 

 

438,010

 

 

 

455,995

 

 

 

452,276

 

 

 

456,346

 

 

 

427,534

 

 

 

451,485

 

Return on average tangible common equity

 

 

12.96

%

 

 

(4.09

%)

 

 

14.54

%

 

 

12.56

%

 

 

11.19

%

 

 

4.23

%

 

 

12.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

64,251

 

 

$

62,500

 

 

$

66,408

 

 

$

64,765

 

 

$

63,419

 

 

$

126,751

 

 

$

124,730

 

Non-interest income

 

 

20,029

 

 

 

7,477

 

 

 

8,666

 

 

 

7,742

 

 

 

7,623

 

 

 

27,506

 

 

 

15,161

 

Operating revenue

 

 

84,280

 

 

 

69,977

 

 

 

75,074

 

 

 

72,507

 

 

 

71,042

 

 

 

154,257

 

 

 

139,891

 

Gain on sale of subsidiary or division

 

 

(9,758

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(9,758

)

 

 

—

 

Adjusted operating revenue

 

$

74,522

 

 

$

69,977

 

 

$

75,074

 

 

$

72,507

 

 

$

71,042

 

 

$

144,499

 

 

$

139,891

 

Non-interest expenses

 

$

52,726

 

 

$

54,753

 

 

$

52,661

 

 

$

52,153

 

 

$

50,704

 

 

$

107,479

 

 

$

99,270

 

Adjusted efficiency ratio

 

 

70.75

%

 

 

78.24

%

 

 

70.15

%

 

 

71.93

%

 

 

71.37

%

 

 

74.38

%

 

 

70.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net non-interest expense to average assets ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses

 

$

52,726

 

 

$

54,753

 

 

$

52,661

 

 

$

52,153

 

 

$

50,704

 

 

$

107,479

 

 

$

99,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income

 

$

20,029

 

 

$

7,477

 

 

$

8,666

 

 

$

7,742

 

 

$

7,623

 

 

$

27,506

 

 

$

15,161

 

Gain on sale of subsidiary or division

 

 

(9,758

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(9,758

)

 

 

—

 

Adjusted non-interest income

 

$

10,271

 

 

$

7,477

 

 

$

8,666

 

 

$

7,742

 

 

$

7,623

 

 

$

17,748

 

 

$

15,161

 

Adjusted net non-interest expenses

 

$

42,455

 

 

$

47,276

 

 

$

43,995

 

 

$

44,411

 

 

$

43,081

 

 

$

89,731

 

 

$

84,109

 

Average total assets

 

$

5,487,072

 

 

$

4,906,547

 

 

$

5,050,860

 

 

$

4,840,540

 

 

$

4,694,647

 

 

$

5,196,815

 

 

$

4,598,735

 

Adjusted net non-interest expense to average assets ratio

 

 

3.11

%

 

 

3.88

%

 

 

3.46

%

 

 

3.64

%

 

 

3.68

%

 

 

3.47

%

 

 

3.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

656,871

 

 

$

589,347

 

 

$

636,590

 

 

$

633,693

 

 

$

643,362

 

 

$

656,871

 

 

$

643,362

 

Preferred stock liquidation preference

 

 

(45,000

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(45,000

)

 

 

—

 

Total common stockholders' equity

 

 

611,871

 

 

 

589,347

 

 

 

636,590

 

 

 

633,693

 

 

 

643,362

 

 

 

611,871

 

 

 

643,362

 

Goodwill and other intangibles

 

 

(186,162

)

 

 

(188,208

)

 

 

(190,286

)

 

 

(192,440

)

 

 

(194,668

)

 

 

(186,162

)

 

 

(194,668

)

Tangible common stockholders' equity

 

$

425,709

 

 

$

401,139

 

 

$

446,304

 

 

$

441,253

 

 

$

448,694

 

 

$

425,709

 

 

$

448,694

 

Common shares outstanding

 

 

24,202,686

 

 

 

24,101,120

 

 

 

24,964,961

 

 

 

25,357,985

 

 

 

26,198,308

 

 

 

24,202,686

 

 

 

26,198,308

 

Tangible book value per share

 

$

17.59

 

 

$

16.64

 

 

$

17.88

 

 

$

17.40

 

 

$

17.13

 

 

$

17.59

 

 

$

17.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets at end of period

 

$

5,617,493

 

 

$

5,353,729

 

 

$

5,060,297

 

 

$

5,039,697

 

 

$

4,783,189

 

 

$

5,617,493

 

 

$

4,783,189

 

Goodwill and other intangibles

 

 

(186,162

)

 

 

(188,208

)

 

 

(190,286

)

 

 

(192,440

)

 

 

(194,668

)

 

 

(186,162

)

 

 

(194,668

)

Tangible assets at period end

 

$

5,431,331

 

 

$

5,165,521

 

 

$

4,870,011

 

 

$

4,847,257

 

 

$

4,588,521

 

 

$

5,431,331

 

 

$

4,588,521

 

Tangible common stockholders' equity ratio

 

 

7.84

%

 

 

7.77

%

 

 

9.16

%

 

 

9.10

%

 

 

9.78

%

 

 

7.84

%

 

 

9.78

%

12

 

1)

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

 

 

•

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

 

 

•

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

 

 

•

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

 

 

•

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

 

 

•

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

 

 

•

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

 

 

•

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

 

 

•

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

 

2)

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

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(Dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

Loan discount accretion

 

$

2,139

 

 

$

2,134

 

 

$

1,555

 

 

$

1,159

 

 

$

1,297

 

 

$

4,273

 

 

$

2,854

 

3)

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

 

4)

Past due ratio has been revised to exclude nonaccrual loans with contractual payments less than 30 days past due.

 

5)

Beginning January 1, 2020, the allowance for credit losses was calculated in accordance with Accounting Standards Codification Topic 326, “Financial Instruments – Credit Losses” (“ASC 326”).

 

6)

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

 

13

 

Media Contact:

Amanda Tavackoli

Senior Vice President, Director of Corporate Communication

atavackoli@tbkbank.com

214-365-6930

14