QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
x | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
September 30, 2022 | December 31, 2021 | |||||||||||||
(Unaudited) | ||||||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | $ | ||||||||||||
Interest bearing deposits with other banks | ||||||||||||||
Total cash and cash equivalents | ||||||||||||||
Securities - equity investments with readily determinable fair values | ||||||||||||||
Securities - available for sale | ||||||||||||||
Securities - held to maturity, net of allowance for credit losses of $ | ||||||||||||||
Loans held for sale | ||||||||||||||
Loans, net of allowance for credit losses of $ | ||||||||||||||
Federal Home Loan Bank and other restricted stock | ||||||||||||||
Premises and equipment, net | ||||||||||||||
Other real estate owned, net | ||||||||||||||
Goodwill | ||||||||||||||
Intangible assets, net | ||||||||||||||
Bank-owned life insurance | ||||||||||||||
Deferred tax asset, net | ||||||||||||||
Indemnification asset | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Liabilities | ||||||||||||||
Deposits | ||||||||||||||
Noninterest bearing | $ | $ | ||||||||||||
Interest bearing | ||||||||||||||
Total deposits | ||||||||||||||
Customer repurchase agreements | ||||||||||||||
Federal Home Loan Bank advances | ||||||||||||||
Paycheck Protection Program Liquidity Facility | ||||||||||||||
Subordinated notes | ||||||||||||||
Junior subordinated debentures | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies - See Note 9 and Note 10 | ||||||||||||||
Stockholders' equity - See Note 13 | ||||||||||||||
Preferred stock | ||||||||||||||
Common stock, | ||||||||||||||
Additional paid-in-capital | ||||||||||||||
Treasury stock, at cost | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive income (loss) | ( | |||||||||||||
Total stockholders’ equity | ||||||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||||||||
Loans, including fees | $ | $ | $ | $ | ||||||||||||||||||||||
Factored receivables, including fees | ||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||
FHLB and other restricted stock | ||||||||||||||||||||||||||
Cash deposits | ||||||||||||||||||||||||||
Total interest income | ||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||
Subordinated notes | ||||||||||||||||||||||||||
Junior subordinated debentures | ||||||||||||||||||||||||||
Other borrowings | ||||||||||||||||||||||||||
Total interest expense | ||||||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||
Credit loss expense (benefit) | ( | ( | ||||||||||||||||||||||||
Net interest income after credit loss expense (benefit) | ||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||
Service charges on deposits | ||||||||||||||||||||||||||
Card income | ||||||||||||||||||||||||||
Net OREO gains (losses) and valuation adjustments | ( | ( | ( | ( | ||||||||||||||||||||||
Net gains (losses) on sale or call of securities | ||||||||||||||||||||||||||
Net gains (losses) on sale of loans | ||||||||||||||||||||||||||
Fee income | ||||||||||||||||||||||||||
Insurance commissions | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total noninterest income | ||||||||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||
Salaries and employee benefits | ||||||||||||||||||||||||||
Occupancy, furniture and equipment | ||||||||||||||||||||||||||
FDIC insurance and other regulatory assessments | ||||||||||||||||||||||||||
Professional fees | ||||||||||||||||||||||||||
Amortization of intangible assets | ||||||||||||||||||||||||||
Advertising and promotion | ||||||||||||||||||||||||||
Communications and technology | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total noninterest expense | ||||||||||||||||||||||||||
Net income before income tax expense | ||||||||||||||||||||||||||
Income tax expense | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Dividends on preferred stock | ( | ( | ( | ( | ||||||||||||||||||||||
Net income available to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings per common share | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||
Unrealized gains (losses) on securities: | ||||||||||||||||||||||||||
Unrealized holding gains (losses) arising during the period | ( | ( | ( | ( | ||||||||||||||||||||||
Tax effect | ||||||||||||||||||||||||||
Unrealized holding gains (losses) arising during the period, net of taxes | ( | ( | ( | ( | ||||||||||||||||||||||
Reclassification of amount realized through sale or call of securities | ( | ( | ( | |||||||||||||||||||||||
Tax effect | ||||||||||||||||||||||||||
Reclassification of amount realized through sale or call of securities, net of taxes | ( | ( | ( | |||||||||||||||||||||||
Change in unrealized gains (losses) on securities, net of tax | ( | ( | ( | ( | ||||||||||||||||||||||
Unrealized gains (losses) on derivative financial instruments: | ||||||||||||||||||||||||||
Unrealized holding gains (losses) arising during the period | ( | |||||||||||||||||||||||||
Tax effect | ( | ( | ||||||||||||||||||||||||
Unrealized holding gains (losses) arising during the period, net of taxes | ( | |||||||||||||||||||||||||
Reclassification of amount of (gains) losses recognized into income | ( | |||||||||||||||||||||||||
Tax effect | ( | ( | ||||||||||||||||||||||||
Reclassification of amount of (gains) losses recognized into income, net of taxes | ( | |||||||||||||||||||||||||
Change in unrealized gains (losses) on derivative financial instruments | ( | |||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ( | |||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Preferred Stock | Common Stock | Additional Paid-in- Capital | Treasury Stock | Retained Earnings | Accumulated | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liquidation Preference Amount | Shares Outstanding | Par Amount | Shares Outstanding | Cost | Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises, net | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock awards | — | ( | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of performance stock units | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises, net | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock awards | — | ( | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock awards | — | ( | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to the employee stock purchase plan | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | ( | $ | $ | ( | $ |
Preferred Stock | Common Stock | Additional Paid-in- Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liquidation Preference Amount | Shares Outstanding | Par Amount | Shares Outstanding | Cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock awards | — | ( | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | — | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises, net | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock awards | — | ( | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercises, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock awards | — | ( | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to the ESPP | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | $ | ( | $ | $ | $ |
Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||
Depreciation | ||||||||||||||
Net accretion on loans | ( | ( | ||||||||||||
Amortization of subordinated notes issuance costs | ||||||||||||||
Amortization of junior subordinated debentures | ||||||||||||||
Net (accretion) amortization on securities | ( | ( | ||||||||||||
Amortization of intangible assets | ||||||||||||||
Deferred taxes | ||||||||||||||
Credit loss expense (benefit) | ( | |||||||||||||
Stock based compensation | ||||||||||||||
Net (gains) losses on sale or call of debt securities | ( | ( | ||||||||||||
Net (gains) losses on equity securities | ( | |||||||||||||
Net OREO (gains) losses and valuation adjustments | ||||||||||||||
Origination of loans held for sale | ( | ( | ||||||||||||
Purchases of loans held for sale | ( | ( | ||||||||||||
Proceeds from sale of loans originated or purchased for sale | ||||||||||||||
Net (gains) losses on sale of loans | ( | ( | ||||||||||||
Net change in operating leases | ||||||||||||||
(Increase) decrease in other assets | ( | ( | ||||||||||||
Increase (decrease) in other liabilities | ||||||||||||||
Net cash provided by (used in) operating activities | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of securities available for sale | ( | ( | ||||||||||||
Proceeds from sales of securities available for sale | ||||||||||||||
Proceeds from maturities, calls, and pay downs of securities available for sale | ||||||||||||||
Proceeds from maturities, calls, and pay downs of securities held to maturity | ||||||||||||||
Purchases of loans held for investment | ( | ( | ||||||||||||
Proceeds from sale of loans | ||||||||||||||
Net change in loans | ||||||||||||||
Purchases of premises and equipment, net | ( | ( | ||||||||||||
Net proceeds from sale of OREO | ||||||||||||||
(Purchases) redemptions of FHLB and other restricted stock, net | ||||||||||||||
Net cash (paid for) received in acquisitions | ( | |||||||||||||
Proceeds from sale of disposal group | ||||||||||||||
Net cash provided by (used in) investing activities | ||||||||||||||
Cash flows from financing activities: | ||||||||||||||
Net increase (decrease) in deposits | ( | |||||||||||||
Increase (decrease) in customer repurchase agreements | ||||||||||||||
Increase (decrease) in Federal Home Loan Bank advances | ( | ( | ||||||||||||
Proceeds from other borrowings, net | ||||||||||||||
Repayment of other borrowings | ( | ( | ||||||||||||
Preferred dividends | ( | ( | ||||||||||||
Stock option exercises, net | ( | |||||||||||||
Proceeds from employee stock purchase plan common stock issuance | ||||||||||||||
Purchase of treasury stock | ( | ( | ||||||||||||
Net cash provided by (used in) financing activities | ( | ( | ||||||||||||
Net increase (decrease) in cash and cash equivalents | ||||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period |
Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Supplemental cash flow information: | ||||||||||||||
Interest paid | $ | $ | ||||||||||||
Income taxes paid, net | $ | $ | ||||||||||||
Cash paid for operating lease liabilities | $ | $ | ||||||||||||
Supplemental noncash disclosures: | ||||||||||||||
Loans transferred to OREO | $ | $ | ||||||||||||
Loans held for investment transferred to loans held for sale | $ | $ | ||||||||||||
Assets transferred to assets held for sale | $ | $ | ||||||||||||
Deposits transferred to deposits held for sale | $ | $ | ||||||||||||
Lease liabilities arising from obtaining right-of-use assets | $ | $ | ||||||||||||
Securities available for sale purchased, not settled | $ | $ | ||||||||||||
Indemnification reduction | $ | $ | ||||||||||||
Non-cash consideration received from sale of loan portfolio or disposal group | $ | $ | ||||||||||||
(Dollars in thousands) | |||||
Equipment loans | $ | ||||
Accrued interest receivable | $ | ||||
Assets sold | $ | ||||
Cash consideration | $ | ||||
Return of premium liability | $ | ( | |||
Total consideration | $ | ||||
Transaction costs | $ | ||||
Gain on sale, net of transaction costs | $ |
(Dollars in thousands) | September 6, 2022 | June 30, 2022 | Total | ||||||||||||||
Factored receivables | $ | $ | $ | ||||||||||||||
Accrued interest and fee income | |||||||||||||||||
Assets held for sale | $ | $ | $ | ||||||||||||||
Customer reserve noninterest bearing deposits | $ | $ | $ | ||||||||||||||
Liabilities held for sale | $ | $ | $ | ||||||||||||||
Net assets sold | $ | $ | $ | ||||||||||||||
Cash consideration | $ | $ | $ | ||||||||||||||
Revenue share asset | |||||||||||||||||
Total consideration | $ | $ | $ | ||||||||||||||
Transaction costs | |||||||||||||||||
Gain on sale, net of transaction costs | $ | $ | $ |
(Dollars in thousands) | Initial Values | Measurement Period Adjustments | Adjusted Values | |||||||||||||||||
Assets acquired: | ||||||||||||||||||||
Cash | $ | $ | — | $ | ||||||||||||||||
Intangible assets - capitalized software | — | |||||||||||||||||||
Intangible assets - customer relationship | — | |||||||||||||||||||
Other assets | ||||||||||||||||||||
Liabilities assumed: | ||||||||||||||||||||
Deferred income taxes | ( | |||||||||||||||||||
Other liabilities | ||||||||||||||||||||
( | ||||||||||||||||||||
Fair value of net assets acquired | $ | $ | $ | |||||||||||||||||
Consideration: | ||||||||||||||||||||
Cash paid | $ | $ | — | $ | ||||||||||||||||
Goodwill | $ | $ | ( | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Unrealized gains (losses) on equity securities held at the reporting date | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Realized gains (losses) on equity securities sold during the period | ||||||||||||||||||||||||||
$ | ( | $ | ( | $ | ( | $ | ( |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
Equity Securities without readily determinable fair value, at cost | $ | $ | |||||||||
Upward adjustments based on observable price changes, cumulative | |||||||||||
Equity Securities without readily determinable fair value, carrying value | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Unrealized gains (losses) on equity securities still held at the reporting date | $ | $ | $ | $ | |||||||||||||||||||
Realized gains (losses) on equity securities sold during the period | |||||||||||||||||||||||
$ | $ | $ | $ |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Asset-backed securities | ( | |||||||||||||||||||||||||||||||
State and municipal | ( | |||||||||||||||||||||||||||||||
CLO securities | ( | |||||||||||||||||||||||||||||||
Corporate bonds | ( | |||||||||||||||||||||||||||||||
SBA pooled securities | ( | |||||||||||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | ( | $ | $ |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrecognized Losses | Fair Value | ||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||
Held to maturity securities: | ||||||||||||||||||||||||||
CLO securities | $ | $ | $ | ( | $ | |||||||||||||||||||||
Allowance for credit losses | ( | |||||||||||||||||||||||||
Total held to maturity securities, net of ACL | $ |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Asset-backed securities | ( | |||||||||||||||||||||||||||||||
State and municipal | ||||||||||||||||||||||||||||||||
CLO Securities | ( | |||||||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||
SBA pooled securities | ||||||||||||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | ( | $ | $ |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrecognized Losses | Fair Value | ||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Held to maturity securities: | ||||||||||||||||||||||||||
CLO securities | $ | $ | $ | ( | $ | |||||||||||||||||||||
Allowance for credit losses | ( | |||||||||||||||||||||||||
Total held to maturity securities, net of ACL | $ |
Available for Sale Securities | Held to Maturity Securities | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
Due in one year or less | $ | $ | $ | $ | ||||||||||||||||||||||
Due from one year to five years | ||||||||||||||||||||||||||
Due from five years to ten years | ||||||||||||||||||||||||||
Due after ten years | ||||||||||||||||||||||||||
Mortgage-backed securities, residential | ||||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||
SBA pooled securities | ||||||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Proceeds | $ | $ | $ | $ | ||||||||||||||||||||||
Gross gains | ||||||||||||||||||||||||||
Gross losses | ||||||||||||||||||||||||||
Net gains and losses from calls of securities |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | ( | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||
Asset-backed securities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
State and municipal | ( | ( | ||||||||||||||||||||||||||||||||||||
CLO securities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ||||||||||||||||||||||||||||||||||||
SBA pooled securities | ( | ( | ||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | ( | $ | $ | ( |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Asset-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||
State and municipal | ||||||||||||||||||||||||||||||||||||||
CLO Securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||||||||
SBA pooled securities | ||||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | ( | $ | $ | ( |
(Dollars in thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
Held to Maturity CLO Securities | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | ||||||||||||||||||||||
Credit loss expense | ( | |||||||||||||||||||||||||
Allowance for credit losses ending balance | $ | $ | $ | $ |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
1-4 family residential | $ | $ | ||||||||||||
Commercial | ||||||||||||||
Total loans held for sale | $ | $ |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unpaid Principal | Difference | Amortized Cost | Unpaid Principal | Difference | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||
Construction, land development, land | ( | ( | ||||||||||||||||||||||||||||||||||||
1-4 family residential | ( | ( | ||||||||||||||||||||||||||||||||||||
Farmland | ( | ( | ||||||||||||||||||||||||||||||||||||
Commercial | ( | ( | ||||||||||||||||||||||||||||||||||||
Factored receivables | ( | ( | ||||||||||||||||||||||||||||||||||||
Consumer | ( | |||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||
Total loans held for investment | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
Allowance for credit losses | ( | ( | ||||||||||||||||||||||||||||||||||||
$ | $ |
(Dollars in thousands) | Beginning Balance | Credit Loss Expense | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||||||||
Three months ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||
Construction, land development, land | ( | |||||||||||||||||||||||||||||||
1-4 family residential | ( | |||||||||||||||||||||||||||||||
Farmland | ( | |||||||||||||||||||||||||||||||
Commercial | ( | |||||||||||||||||||||||||||||||
Factored receivables | ( | |||||||||||||||||||||||||||||||
Consumer | ( | |||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||
$ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||
(Dollars in thousands) | Beginning Balance | Credit Loss Expense | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||||||||
Three months ended September 30, 2021 | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||
Construction, land development, land | ( | |||||||||||||||||||||||||||||||
1-4 family residential | ( | ( | ||||||||||||||||||||||||||||||
Farmland | ( | |||||||||||||||||||||||||||||||
Commercial | ( | ( | ||||||||||||||||||||||||||||||
Factored receivables | ( | |||||||||||||||||||||||||||||||
Consumer | ( | |||||||||||||||||||||||||||||||
Mortgage warehouse | ( | |||||||||||||||||||||||||||||||
$ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||
(Dollars in thousands) | Beginning Balance | Credit Loss Expense | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||
Farmland | ( | |||||||||||||||||||||||||||||||
Commercial | ( | |||||||||||||||||||||||||||||||
Factored receivables | ( | |||||||||||||||||||||||||||||||
Consumer | ( | |||||||||||||||||||||||||||||||
Mortgage warehouse | ( | |||||||||||||||||||||||||||||||
$ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||
(Dollars in thousands) | Beginning Balance | Credit Loss Expense | Charge-offs | Recoveries | Ending Balance | |||||||||||||||||||||||||||
Nine months ended September 30, 2021 | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||
Construction, land development, land | ( | ( | ||||||||||||||||||||||||||||||
1-4 family residential | ( | ( | ||||||||||||||||||||||||||||||
Farmland | ( | |||||||||||||||||||||||||||||||
Commercial | ( | ( | ||||||||||||||||||||||||||||||
Factored receivables | ( | |||||||||||||||||||||||||||||||
Consumer | ( | ( | ||||||||||||||||||||||||||||||
Mortgage warehouse | ( | |||||||||||||||||||||||||||||||
$ | $ | ( | $ | ( | $ | $ |
(Dollars in thousands) | Real Estate | Accounts Receivable | Equipment | Other | Total | ACL Allocation | ||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | Real Estate | Accounts Receivable | Equipment | Other | Total | ACL Allocation | ||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | Past Due 30-59 Days | Past Due 60-90 Days | Past Due 90 Days or More | Total Past Due | Current | Total | Past Due 90 Days or More and Accruing | |||||||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | Past Due 30-59 Days | Past Due 60-90 Days | Past Due 90 Days or More | Total Past Due | Current | Total | Past Due 90 Days or More and Accruing | |||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(Dollars in thousands) | Total Nonaccrual | Nonaccrual With No ACL | Total Nonaccrual | Nonaccrual With No ACL | ||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||
$ | $ | $ | $ |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Nonaccrual loans(1) | $ | $ | ||||||||||||
Factored receivables greater than 90 days past due | ||||||||||||||
Other nonperforming factored receivables(2) | ||||||||||||||
Troubled debt restructurings accruing interest | ||||||||||||||
$ | $ |
Revolving Loans | Revolving Loans Converted To Term Loans | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Year of Origination | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total construction, land development, land | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total 1-4 family residential | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total farmland | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total factored receivables | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage warehouse | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Total loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Revolving Loans | Revolving Loans Converted To Term Loans | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Year of Origination | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total construction, land development, land | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total 1-4 family residential | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Farmland | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total farmland | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total factored receivables | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage warehouse | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage warehouse | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Total loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | Extended Amortization Period | Payment Deferrals | Protective Advances | Total Modifications | Number of Loans | |||||||||||||||||||||||||||
Three months ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | ||||||||||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||||||||||
Nine months ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | ||||||||||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | |||||||||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Total modifications |
(Dollars in thousands) | Total Loans | Balance of Loans Currently in Deferral | Percentage of Portfolio | Accrued Interest Receivable | ||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Commercial real estate | $ | $ | % | $ | ||||||||||||||||||||||
Construction, land development, land | % | |||||||||||||||||||||||||
1-4 family residential | % | |||||||||||||||||||||||||
Farmland | % | |||||||||||||||||||||||||
Commercial | % | |||||||||||||||||||||||||
Factored receivables | % | |||||||||||||||||||||||||
Consumer | % | |||||||||||||||||||||||||
Mortgage warehouse | % | |||||||||||||||||||||||||
Total | $ | $ | % | $ |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
Goodwill | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||
Core deposit intangibles | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Software intangible assets | ( | ( | |||||||||||||||||||||||||||||||||
Other intangible assets | ( | ( | |||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | ( | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Acquired goodwill | |||||||||||||||||||||||
Acquired intangible assets | |||||||||||||||||||||||
Acquired goodwill - measurement period adjustment | ( | ( | ( | ||||||||||||||||||||
Amortization of intangibles | ( | ( | ( | ( | |||||||||||||||||||
Ending balance | $ | $ | $ | $ |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
Common stock | $ | $ | |||||||||
Warrants | — | ||||||||||
Total investment | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Unrealized gains on terminated hedges | |||||||||||||||||||||||
Beginning Balance | $ | $ | $ | $ | |||||||||||||||||||
Unrealized gains arising during the period | |||||||||||||||||||||||
Reclassification adjustments for amortization of unrealized (gains) into net income | ( | ||||||||||||||||||||||
Ending Balance | $ | $ | $ | $ |
Derivative Assets | ||||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||
(Dollars in thousands) | Notional Amount | Balance Sheet Location | Fair Value Total | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps | $ | Other Assets | $ |
Amount of Gain or (Loss) Recognized in OCI on Derivative | Amount of Gain or (Loss) Recognized in OCI Included Component | Location of (Gain) or Loss Recognized from AOCI into Income | Amount of (Gain) or Loss Reclassified from AOCI into Income | Amount of (Gain) or Loss Reclassified from AOCI into Income Included Component | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||||||||||||||||
Interest rate swaps | $ | $ | Interest Expense, Noninterest Income | $ | $ | |||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||||||||||||||||
Interest rate swaps | $ | $ | Interest Expense | $ | $ | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||||||||||||||||
Interest rate swaps | $ | ( | $ | ( | Interest Expense, Noninterest Income | $ | ( | $ | ( | |||||||||||||||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
Derivatives in cash flow hedging relationships: | ||||||||||||||||||||||||||||||||
Interest rate swaps | $ | $ | Interest Expense | $ | $ |
(Dollars in thousands) | Offering Date | Offering Amount | |||||||||
Trinitas CLO IV, LTD (Trinitas IV) | June 2, 2016 | $ | |||||||||
Trinitas CLO V, LTD (Trinitas V) | September 22, 2016 | $ | |||||||||
Trinitas CLO VI, LTD (Trinitas VI) | June 20, 2017 | $ |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Fixed Rate | Variable Rate | Total | Fixed Rate | Variable Rate | Total | |||||||||||||||||||||||||||||
Unused lines of credit | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Standby letters of credit | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commitments to purchase loans | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Mortgage warehouse commitments | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Credit loss expense (benefit) | $ | ( | $ | ( | $ | ( | $ | ( |
(Dollars in thousands) | Fair Value Measurements Using | Total Fair Value | ||||||||||||||||||||||||
September 30, 2022 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets measured at fair value on a recurring basis | ||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | $ | $ | ||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||
State and municipal | ||||||||||||||||||||||||||
CLO securities | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
SBA pooled securities | ||||||||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||||
Equity securities with readily determinable fair values | ||||||||||||||||||||||||||
Mutual fund | $ | $ | $ | $ | ||||||||||||||||||||||
Loans held for sale | $ | $ | $ | $ | ||||||||||||||||||||||
Indemnification asset | $ | $ | $ | $ | ||||||||||||||||||||||
Revenue share asset | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities measured at fair value on a recurring basis | ||||||||||||||||||||||||||
Return of premium liability | $ | $ | $ | $ |
(Dollars in thousands) | Fair Value Measurements Using | Total Fair Value | ||||||||||||||||||||||||
December 31, 2021 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets measured at fair value on a recurring basis | ||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||
Mortgage-backed securities, residential | $ | $ | $ | $ | ||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||
State and municipal | ||||||||||||||||||||||||||
CLO Securities | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
SBA pooled securities | ||||||||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||||
Equity securities with readily determinable fair values | ||||||||||||||||||||||||||
Mutual fund | $ | $ | $ | $ | ||||||||||||||||||||||
Loans held for sale | $ | $ | $ | $ | ||||||||||||||||||||||
Derivative financial instruments (cash flow hedges) | ||||||||||||||||||||||||||
Interest rate swap | $ | $ | $ | $ | ||||||||||||||||||||||
Indemnification asset | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | ||||||||||||||||||||||
Indemnification asset recognized in business combination | ||||||||||||||||||||||||||
Change in fair value of indemnification asset recognized in earnings | ( | ( | ( | |||||||||||||||||||||||
Indemnification reduction | ( | |||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ |
(Dollars in thousands) | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | ||||||||||||
Beginning balance | $ | $ | ||||||||||||
Revenue share asset recognized | ||||||||||||||
Change in fair value of revenue share asset recognized in earnings | ||||||||||||||
Revenue share payments received | ( | ( | ||||||||||||
Ending balance | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | ||||||||||||||||||||||
Return of premium liability recognized in business combination | ||||||||||||||||||||||||||
Change in fair value of return of premium liability recognized in earnings | ( | ( | ||||||||||||||||||||||||
Return of premium payments made | ( | ( | ||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ |
(Dollars in thousands) | Fair Value Measurements Using | Total Fair Value | ||||||||||||||||||||||||
September 30, 2022 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Collateral dependent loans | ||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||
$ | $ | $ | $ |
(Dollars in thousands) | Fair Value Measurements Using | Total Fair Value | ||||||||||||||||||||||||
December 31, 2021 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Collateral dependent loans | ||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
1-4 family residential | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Factored receivables | ||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||
Other real estate owned (1) | ||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Construction, land development, land | ||||||||||||||||||||||||||
$ | $ | $ | $ |
(Dollars in thousands) | Carrying Amount | Fair Value Measurements Using | Total Fair Value | |||||||||||||||||||||||||||||
September 30, 2022 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Securities - held to maturity | ||||||||||||||||||||||||||||||||
Loans not previously presented, gross | ||||||||||||||||||||||||||||||||
FHLB and other restricted stock | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | ||||||||||||||||||||||||||||||||
Subordinated notes | ||||||||||||||||||||||||||||||||
Junior subordinated debentures | ||||||||||||||||||||||||||||||||
Accrued interest payable |
(Dollars in thousands) | Carrying Amount | Fair Value Measurements Using | Total Fair Value | |||||||||||||||||||||||||||||
December 31, 2021 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Securities - held to maturity | ||||||||||||||||||||||||||||||||
Loans not previously presented, gross | ||||||||||||||||||||||||||||||||
FHLB and other restricted stock | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||
Customer repurchase agreements | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | ||||||||||||||||||||||||||||||||
Paycheck Protection Program Liquidity Facility | ||||||||||||||||||||||||||||||||
Subordinated notes | ||||||||||||||||||||||||||||||||
Junior subordinated debentures | ||||||||||||||||||||||||||||||||
Accrued interest payable |
(Dollars in thousands) | Actual | Minimum for Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||||||||||||||
September 30, 2022 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Bancorp, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Bancorp, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Bancorp, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Bancorp, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Bancorp, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Bancorp, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Bancorp, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||||||||||||
Triumph Bancorp, Inc. | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||||
TBK Bank, SSB | $ | $ | $ |
(Dollars in thousands, except per share amounts) | September 30, 2022 | December 31, 2021 | ||||||||||||
Shares authorized | ||||||||||||||
Shares issued | ||||||||||||||
Shares outstanding | ||||||||||||||
Par value per share | $ | $ | ||||||||||||
Liquidation preference per share | $ | $ | ||||||||||||
Liquidation preference amount | $ | $ | ||||||||||||
Dividend rate | % | % | ||||||||||||
Dividend payment dates | Quarterly | Quarterly |
September 30, 2022 | December 31, 2021 | |||||||||||||
Shares authorized | ||||||||||||||
Shares issued | ||||||||||||||
Treasury shares | ( | ( | ||||||||||||
Shares outstanding | ||||||||||||||
Par value per share | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Shares repurchased into treasury stock | ||||||||||||||||||||||||||
Average price of shares repurchased into treasury stock | $ | $ | $ | $ | ||||||||||||||||||||||
Total cost of shares repurchased into treasury stock | $ | $ | $ | $ |
Nonvested RSAs | Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||
Nonvested at January 1, 2022 | ||||||||||||||
Granted | ||||||||||||||
Vested | ( | |||||||||||||
Forfeited | ( | |||||||||||||
Nonvested at September 30, 2022 |
Nonvested RSUs | Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||
Nonvested at January 1, 2022 | ||||||||||||||
Granted | ||||||||||||||
Vested | ||||||||||||||
Forfeited | ( | |||||||||||||
Nonvested at September 30, 2022 |
Nonvested Market Based PSUs | Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||
Nonvested at January 1, 2022 | $ | |||||||||||||
Granted | ||||||||||||||
Incremental shares earned | N/A | |||||||||||||
Vested | ( | |||||||||||||
Forfeited | ( | |||||||||||||
Nonvested at September 30, 2022 | $ |
Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Grant date | May 1, 2022 | May 1, 2021 | ||||||||||||
Performance period | ||||||||||||||
Stock price | $ | $ | ||||||||||||
Triumph stock price volatility | % | % | ||||||||||||
Risk-free rate | % | % |
Nonvested Performance Based PSUs | Shares | Weighted Average Grant Date Fair Value | ||||||||||||
Nonvested at January 1, 2022 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ||||||||||||||
Forfeited | ( | |||||||||||||
Nonvested at September 30, 2022 | $ |
Stock Options | Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (In Thousands) | ||||||||||||||||||||||
Outstanding at January 1, 2022 | $ | |||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||
Exercised | ( | |||||||||||||||||||||||||
Forfeited or expired | ||||||||||||||||||||||||||
Outstanding at September 30, 2022 | $ | $ | ||||||||||||||||||||||||
Fully vested shares and shares expected to vest at September 30, 2022 | $ | $ | ||||||||||||||||||||||||
Shares exercisable at September 30, 2022 | $ | $ |
Nine Months Ended September 30, | ||||||||||||||
(Dollars in thousands, except per share amounts) | 2022 | 2021 | ||||||||||||
Aggregate intrinsic value of options exercised | $ | $ | ||||||||||||
Cash received from option exercises, net | ( | |||||||||||||
Tax benefit realized from option exercises | ||||||||||||||
Weighted average fair value per share of options granted | $ | $ |
Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Risk-free interest rate | % | % | ||||||||||||
Expected term | ||||||||||||||
Expected stock price volatility | % | % | ||||||||||||
Dividend yield |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Basic | |||||||||||||||||||||||
Net income to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Diluted | |||||||||||||||||||||||
Net income to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Dilutive effects of: | |||||||||||||||||||||||
Assumed exercises of stock options | |||||||||||||||||||||||
Restricted stock awards | |||||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Performance stock units - market based | |||||||||||||||||||||||
Performance stock units - performance based | |||||||||||||||||||||||
Employee stock purchase program | |||||||||||||||||||||||
Average shares and dilutive potential common shares | |||||||||||||||||||||||
Diluted earnings per common share | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Stock options | |||||||||||||||||||||||
Restricted stock awards | |||||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Performance stock units - market based | |||||||||||||||||||||||
Performance stock units - performance based | |||||||||||||||||||||||
Employee stock purchase program |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2022 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Intersegment interest allocations | ( | ( | ||||||||||||||||||||||||||||||
Total interest expense | ||||||||||||||||||||||||||||||||
Net interest income (expense) | ( | |||||||||||||||||||||||||||||||
Credit loss expense (benefit) | ( | |||||||||||||||||||||||||||||||
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Net income (loss) before income tax expense | $ | $ | $ | ( | $ | ( | $ |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Intersegment interest allocations | ( | ( | ||||||||||||||||||||||||||||||
Total interest expense | ||||||||||||||||||||||||||||||||
Net interest income (expense) | ( | |||||||||||||||||||||||||||||||
Credit loss expense (benefit) | ( | ( | ||||||||||||||||||||||||||||||
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Noninterest income | ||||||||||||||||||||||||||||||||
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Net income (loss) before income tax expense | $ | $ | $ | ( | $ | ( | $ |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2022 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Intersegment interest allocations | ( | ( | ||||||||||||||||||||||||||||||
Total interest expense | ||||||||||||||||||||||||||||||||
Net interest income (expense) | ( | |||||||||||||||||||||||||||||||
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Net income (loss) before income tax expense | $ | $ | $ | ( | $ | ( | $ |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Intersegment interest allocations | ( | ( | ||||||||||||||||||||||||||||||
Total interest expense | ||||||||||||||||||||||||||||||||
Net interest income (expense) | ( | |||||||||||||||||||||||||||||||
Credit loss expense (benefit) | ( | ( | ( | |||||||||||||||||||||||||||||
Net interest income after credit loss expense | ( | |||||||||||||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||||||
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Net income (loss) before income tax expense | $ | $ | $ | ( | $ | ( | $ |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
September 30, 2022 | Banking | Factoring | Payments | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Gross loans | $ | $ | $ | $ | $ | ( | $ |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2021 | Banking | Factoring | Payments | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Gross loans | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Income Statement Data: | |||||||||||||||||||||||
Interest income | $ | 103,225 | $ | 96,735 | $ | 312,967 | $ | 279,776 | |||||||||||||||
Interest expense | 4,955 | 4,964 | 13,190 | 14,703 | |||||||||||||||||||
Net interest income | 98,270 | 91,771 | 299,777 | 265,073 | |||||||||||||||||||
Credit loss expense (benefit) | 2,646 | (1,187) | 6,048 | (10,838) | |||||||||||||||||||
Net interest income after credit loss expense (benefit) | 95,624 | 92,958 | 293,729 | 275,911 | |||||||||||||||||||
Noninterest income | 12,668 | 12,055 | 71,949 | 40,242 | |||||||||||||||||||
Noninterest expense | 86,689 | 72,813 | 253,860 | 204,503 | |||||||||||||||||||
Net income (loss) before income taxes | 21,603 | 32,200 | 111,818 | 111,650 | |||||||||||||||||||
Income tax expense (benefit) | 5,374 | 7,771 | 27,068 | 25,316 | |||||||||||||||||||
Net income (loss) | $ | 16,229 | $ | 24,429 | $ | 84,750 | $ | 86,334 | |||||||||||||||
Dividends on preferred stock | (801) | (802) | (2,404) | (2,405) | |||||||||||||||||||
Net income available (loss) to common stockholders | $ | 15,428 | $ | 23,627 | $ | 82,346 | $ | 83,929 | |||||||||||||||
Per Share Data: | |||||||||||||||||||||||
Basic earnings (loss) per common share | $ | 0.64 | $ | 0.95 | $ | 3.36 | $ | 3.40 | |||||||||||||||
Diluted earnings (loss) per common share | $ | 0.62 | $ | 0.94 | $ | 3.28 | $ | 3.33 | |||||||||||||||
Weighted average shares outstanding - basic | 24,227,020 | 24,759,419 | 24,483,054 | 24,719,861 | |||||||||||||||||||
Weighted average shares outstanding - diluted | 24,979,257 | 25,227,963 | 25,072,862 | 25,199,991 | |||||||||||||||||||
Adjusted Per Share Data(1): | |||||||||||||||||||||||
Adjusted diluted earnings per common share | $ | 0.62 | $ | 0.94 | $ | 3.28 | $ | 3.42 | |||||||||||||||
Adjusted weighted average shares outstanding - diluted | 24,979,257 | 25,227,963 | 25,072,862 | 25,199,991 | |||||||||||||||||||
Performance ratios - Annualized: | |||||||||||||||||||||||
Return on average assets | 1.13 | % | 1.61 | % | 1.95 | % | 1.91 | % | |||||||||||||||
Return on average total equity | 7.16 | % | 11.85 | % | 12.77 | % | 14.72 | % | |||||||||||||||
Return on average common equity | 7.17 | % | 12.13 | % | 13.07 | % | 15.18 | % | |||||||||||||||
Return on average tangible common equity (1) | 10.47 | % | 19.21 | % | 19.28 | % | 22.12 | % | |||||||||||||||
Yield on loans(2) | 8.95 | % | 7.92 | % | 8.77 | % | 7.65 | % | |||||||||||||||
Cost of interest bearing deposits | 0.41 | % | 0.27 | % | 0.35 | % | 0.33 | % | |||||||||||||||
Cost of total deposits | 0.24 | % | 0.16 | % | 0.20 | % | 0.21 | % | |||||||||||||||
Cost of total funds | 0.42 | % | 0.38 | % | 0.36 | % | 0.38 | % | |||||||||||||||
Net interest margin(2) | 7.71 | % | 6.69 | % | 7.69 | % | 6.41 | % | |||||||||||||||
Efficiency ratio | 78.14 | % | 70.13 | % | 68.29 | % | 66.98 | % | |||||||||||||||
Adjusted efficiency ratio (1) | 78.14 | % | 70.13 | % | 68.29 | % | 66.00 | % | |||||||||||||||
Net noninterest expense to average assets | 5.15 | % | 4.00 | % | 4.19 | % | 3.63 | % | |||||||||||||||
Adjusted net noninterest expense to average assets (1) | 5.15 | % | 4.00 | % | 4.19 | % | 3.57 | % |
(Dollars in thousands, except per share amounts) | September 30, 2022 | December 31, 2021 | |||||||||
Balance Sheet Data: | |||||||||||
Total assets | $ | 5,642,450 | $ | 5,956,250 | |||||||
Cash and cash equivalents | 421,729 | 383,178 | |||||||||
Investment securities | 247,499 | 192,877 | |||||||||
Loans held for investment, net | 4,389,193 | 4,825,359 | |||||||||
Total liabilities | 4,751,277 | 5,097,386 | |||||||||
Noninterest bearing deposits | 1,897,309 | 1,925,370 | |||||||||
Interest bearing deposits | 2,544,045 | 2,721,309 | |||||||||
FHLB advances | 30,000 | 180,000 | |||||||||
Paycheck Protection Program Liquidity Facility | — | 27,144 | |||||||||
Subordinated notes | 107,587 | 106,957 | |||||||||
Junior subordinated debentures | 41,016 | 40,602 | |||||||||
Total stockholders’ equity | 891,173 | 858,864 | |||||||||
Preferred stockholders' equity | 45,000 | 45,000 | |||||||||
Common stockholders' equity | 846,173 | 813,864 | |||||||||
Per Share Data: | |||||||||||
Book value per share | $ | 34.57 | $ | 32.35 | |||||||
Tangible book value per share (1) | $ | 23.60 | $ | 21.34 | |||||||
Shares outstanding end of period | 24,478,288 | 25,158,879 | |||||||||
Asset Quality ratios(3): | |||||||||||
Past due to total loans | 2.33 | % | 2.86 | % | |||||||
Nonperforming loans to total loans | 1.26 | % | 0.95 | % | |||||||
Nonperforming assets to total assets | 1.11 | % | 0.92 | % | |||||||
ACL to nonperforming loans | 78.88 | % | 91.20 | % | |||||||
ACL to total loans | 0.99 | % | 0.87 | % | |||||||
Net charge-offs to average loans(4) | 0.09 | % | 0.95 | % | |||||||
Capital ratios: | |||||||||||
Tier 1 capital to average assets | 12.57 | % | 11.11 | % | |||||||
Tier 1 capital to risk-weighted assets | 13.64 | % | 11.51 | % | |||||||
Common equity Tier 1 capital to risk-weighted assets | 11.93 | % | 9.94 | % | |||||||
Total capital to risk-weighted assets | 16.56 | % | 14.10 | % | |||||||
Total stockholders' equity to total assets | 15.79 | % | 14.42 | % | |||||||
Tangible common stockholders' equity ratio (1) | 10.75 | % | 9.46 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Loan discount accretion | $ | 1,539 | $ | 1,953 | $ | 6,631 | $ | 7,615 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income available to common stockholders | $ | 15,428 | $ | 23,627 | $ | 82,346 | $ | 83,929 | |||||||||||||||
Transaction costs | — | — | — | 2,992 | |||||||||||||||||||
Tax effect of adjustments | — | — | — | (715) | |||||||||||||||||||
Adjusted net income available to common stockholders | $ | 15,428 | $ | 23,627 | $ | 82,346 | $ | 86,206 | |||||||||||||||
Weighted average shares outstanding - diluted | 24,979,257 | 25,227,963 | 25,072,862 | 25,199,991 | |||||||||||||||||||
Adjusted diluted earnings per common share | $ | 0.62 | $ | 0.94 | $ | 3.28 | $ | 3.42 | |||||||||||||||
Average total stockholders' equity | $ | 898,845 | $ | 818,022 | $ | 887,497 | $ | 784,019 | |||||||||||||||
Average preferred stock liquidation preference | (45,000) | (45,000) | (45,000) | (45,000) | |||||||||||||||||||
Average total common stockholders' equity | 853,845 | 773,022 | 842,497 | 739,019 | |||||||||||||||||||
Average goodwill and other intangibles | (269,417) | (284,970) | (271,350) | (231,751) | |||||||||||||||||||
Average tangible common equity | $ | 584,428 | $ | 488,052 | $ | 571,147 | $ | 507,268 | |||||||||||||||
Net income available to common stockholders | $ | 15,428 | $ | 23,627 | $ | 82,346 | $ | 83,929 | |||||||||||||||
Average tangible common equity | 584,428 | 488,052 | 571,147 | 507,268 | |||||||||||||||||||
Return on average tangible common equity | 10.47 | % | 19.21 | % | 19.28 | % | 22.12 | % | |||||||||||||||
Adjusted efficiency ratio: | |||||||||||||||||||||||
Net interest income | $ | 98,270 | $ | 91,771 | $ | 299,777 | $ | 265,073 | |||||||||||||||
Noninterest income | 12,668 | 12,055 | 71,949 | 40,242 | |||||||||||||||||||
Operating revenue | 110,938 | 103,826 | 371,726 | 305,315 | |||||||||||||||||||
Total noninterest expense | $ | 86,689 | $ | 72,813 | $ | 253,860 | $ | 204,503 | |||||||||||||||
Transaction costs | — | — | — | (2,992) | |||||||||||||||||||
Adjusted noninterest expense | $ | 86,689 | $ | 72,813 | $ | 253,860 | $ | 201,511 | |||||||||||||||
Adjusted efficiency ratio | 78.14 | % | 70.13 | % | 68.29 | % | 66.00 | % | |||||||||||||||
Adjusted net noninterest expense to average assets ratio: | |||||||||||||||||||||||
Total noninterest expense | $ | 86,689 | $ | 72,813 | $ | 253,860 | $ | 204,503 | |||||||||||||||
Transaction costs | — | — | — | (2,992) | |||||||||||||||||||
Adjusted noninterest expense | 86,689 | 72,813 | 253,860 | 201,511 | |||||||||||||||||||
Total noninterest income | 12,668 | 12,055 | 71,949 | 40,242 | |||||||||||||||||||
Net noninterest expenses | $ | 74,021 | $ | 60,758 | $ | 181,911 | $ | 161,269 | |||||||||||||||
Average total assets | $ | 5,700,547 | $ | 6,020,631 | $ | 5,806,933 | $ | 6,042,677 | |||||||||||||||
Adjusted net noninterest expense to average assets ratio | 5.15 | % | 4.00 | % | 4.19 | % | 3.57 | % |
(Dollars in thousands, except per share amounts) | September 30, 2022 | December 31, 2021 | ||||||||||||
Total stockholders' equity | $ | 891,173 | $ | 858,864 | ||||||||||
Preferred stock | (45,000) | (45,000) | ||||||||||||
Total common stockholders' equity | 846,173 | 813,864 | ||||||||||||
Goodwill and other intangibles | (268,604) | (276,856) | ||||||||||||
Tangible common stockholders' equity | $ | 577,569 | $ | 537,008 | ||||||||||
Common shares outstanding | 24,478,288 | 25,158,879 | ||||||||||||
Tangible book value per share | $ | 23.60 | $ | 21.34 | ||||||||||
Total assets at end of period | $ | 5,642,450 | $ | 5,956,250 | ||||||||||
Goodwill and other intangibles | (268,604) | (276,856) | ||||||||||||
Tangible assets at period end | $ | 5,373,846 | $ | 5,679,394 | ||||||||||
Tangible common stockholders' equity ratio | 10.75 | % | 9.46 | % |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Average Rate(4) | Average Balance | Interest | Average Rate(4) | |||||||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 452,136 | 2,607 | 2.29 | % | 474,122 | 183 | 0.15 | % | |||||||||||||||||||||||||||
Taxable securities | 231,759 | 2,217 | 3.80 | % | 154,017 | 948 | 2.44 | % | |||||||||||||||||||||||||||
Tax-exempt securities | 14,197 | 91 | 2.54 | % | 27,839 | 178 | 2.54 | % | |||||||||||||||||||||||||||
FHLB and other restricted stock | 6,171 | 65 | 4.18 | % | 7,956 | 28 | 1.40 | % | |||||||||||||||||||||||||||
Loans (1) | 4,355,132 | 98,245 | 8.95 | % | 4,777,409 | 95,398 | 7.92 | % | |||||||||||||||||||||||||||
Total interest earning assets | 5,059,395 | 103,225 | 8.09 | % | 5,441,343 | 96,735 | 7.05 | % | |||||||||||||||||||||||||||
Noninterest earning assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 108,323 | 75,374 | |||||||||||||||||||||||||||||||||
Other noninterest earning assets | 532,829 | 503,914 | |||||||||||||||||||||||||||||||||
Total assets | 5,700,547 | 6,020,631 | |||||||||||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Interest bearing demand | 879,851 | 812 | 0.37 | % | 779,625 | 435 | 0.22 | % | |||||||||||||||||||||||||||
Individual retirement accounts | 77,004 | 97 | 0.50 | % | 86,571 | 126 | 0.58 | % | |||||||||||||||||||||||||||
Money market | 524,483 | 313 | 0.24 | % | 417,435 | 225 | 0.21 | % | |||||||||||||||||||||||||||
Savings | 524,106 | 209 | 0.16 | % | 479,915 | 185 | 0.15 | % | |||||||||||||||||||||||||||
Certificates of deposit | 407,130 | 564 | 0.55 | % | 595,001 | 725 | 0.48 | % | |||||||||||||||||||||||||||
Brokered time deposits | 186,856 | 748 | 1.59 | % | 99,116 | 29 | 0.12 | % | |||||||||||||||||||||||||||
Other brokered deposits | 26,758 | — | — | % | 441,446 | 223 | 0.20 | % | |||||||||||||||||||||||||||
Total interest bearing deposits | 2,626,188 | 2,743 | 0.41 | % | 2,899,109 | 1,948 | 0.27 | % | |||||||||||||||||||||||||||
Federal Home Loan Bank advances | 30,000 | 182 | 2.41 | % | 36,522 | 22 | 0.24 | % | |||||||||||||||||||||||||||
Subordinated notes | 107,477 | 1,304 | 4.81 | % | 114,071 | 2,449 | 8.52 | % | |||||||||||||||||||||||||||
Junior subordinated debentures | 40,948 | 726 | 7.03 | % | 40,390 | 443 | 4.35 | % | |||||||||||||||||||||||||||
Other borrowings | 13,180 | — | — | % | 127,946 | 102 | 0.32 | % | |||||||||||||||||||||||||||
Total interest bearing liabilities | 2,817,793 | 4,955 | 0.70 | % | 3,218,038 | 4,964 | 0.61 | % | |||||||||||||||||||||||||||
Noninterest bearing liabilities and equity: | |||||||||||||||||||||||||||||||||||
Noninterest bearing demand deposits | 1,885,111 | 1,912,398 | |||||||||||||||||||||||||||||||||
Other liabilities | 98,798 | 72,173 | |||||||||||||||||||||||||||||||||
Total equity | 898,845 | 818,022 | |||||||||||||||||||||||||||||||||
Total liabilities and equity | 5,700,547 | 6,020,631 | |||||||||||||||||||||||||||||||||
Net interest income | 98,270 | 91,771 | |||||||||||||||||||||||||||||||||
Interest spread (2) | 7.39 | % | 6.44 | % | |||||||||||||||||||||||||||||||
Net interest margin (3) | 7.71 | % | 6.69 | % |
Three Months Ended September 30, | |||||||||||
(Dollars in thousands) | 2022 | 2021 | |||||||||
Average Banking loans | $ | 2,830,507 | $ | 3,299,152 | |||||||
Average Factoring receivables | 1,393,141 | 1,362,856 | |||||||||
Average Payments receivables | 131,484 | 115,401 | |||||||||
Average total loans | $ | 4,355,132 | $ | 4,777,409 | |||||||
Banking yield | 6.30 | % | 5.40 | % | |||||||
Factoring yield | 14.11 | % | 13.75 | % | |||||||
Payments yield | 11.33 | % | 11.33 | % | |||||||
Total loan yield | 8.95 | % | 7.92 | % |
Three Months Ended | |||||||||||||||||
September 30, 2022 vs. 2021 | |||||||||||||||||
Increase (Decrease) Due to: | |||||||||||||||||
(Dollars in thousands) | Rate | Volume | Net Increase | ||||||||||||||
Interest earning assets: | |||||||||||||||||
Cash and cash equivalents | $ | 2,551 | $ | (127) | $ | 2,424 | |||||||||||
Taxable securities | 525 | 744 | 1,269 | ||||||||||||||
Tax-exempt securities | — | (87) | (87) | ||||||||||||||
FHLB and other restricted stock | 56 | (19) | 37 | ||||||||||||||
Loans | 12,373 | (9,526) | 2,847 | ||||||||||||||
Total interest income | 15,505 | (9,015) | 6,490 | ||||||||||||||
Interest bearing liabilities: | |||||||||||||||||
Interest bearing demand | 285 | 92 | 377 | ||||||||||||||
Individual retirement accounts | (17) | (12) | (29) | ||||||||||||||
Money market | 24 | 64 | 88 | ||||||||||||||
Savings | 6 | 18 | 24 | ||||||||||||||
Certificates of deposit | 99 | (260) | (161) | ||||||||||||||
Brokered time deposits | 368 | 351 | 719 | ||||||||||||||
Other brokered deposits | (223) | — | (223) | ||||||||||||||
Total interest bearing deposits | 542 | 253 | 795 | ||||||||||||||
Federal Home Loan Bank advances | 200 | (40) | 160 | ||||||||||||||
Subordinated notes | (1,065) | (80) | (1,145) | ||||||||||||||
Junior subordinated debentures | 273 | 10 | 283 | ||||||||||||||
Other borrowings | (102) | — | (102) | ||||||||||||||
Total interest expense | (152) | 143 | (9) | ||||||||||||||
Change in net interest income | $ | 15,657 | $ | (9,158) | $ | 6,499 |
Three Months Ended September 30, | |||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
Credit loss expense (benefit) on loans | $ | 3,169 | $ | (959) | $ | 4,128 | 430.4 | % | |||||||||||||||
Credit loss expense (benefit) on off balance sheet credit exposures | (598) | (238) | (360) | (151.3) | % | ||||||||||||||||||
Credit loss expense (benefit) on held to maturity securities | 75 | 10 | 65 | 650.0 | % | ||||||||||||||||||
Credit loss expense on available for sale securities | — | — | — | — | |||||||||||||||||||
Total credit loss expense (benefit) | $ | 2,646 | $ | (1,187) | $ | 3,833 | 322.9 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
Service charges on deposits | $ | 1,558 | $ | 2,030 | $ | (472) | (23.3) | % | |||||||||||||||
Card income | 2,034 | 2,144 | (110) | (5.1) | % | ||||||||||||||||||
Net OREO gains (losses) and valuation adjustments | (19) | (9) | (10) | (111.1) | % | ||||||||||||||||||
Net gains (losses) on sale or call of securities | — | 4 | (4) | (100.0) | % | ||||||||||||||||||
Net gains (losses) on sale of loans | 1,107 | 377 | 730 | 193.6 | % | ||||||||||||||||||
Fee income | 6,120 | 5,198 | 922 | 17.7 | % | ||||||||||||||||||
Insurance commissions | 1,191 | 1,231 | (40) | (3.2) | % | ||||||||||||||||||
Other | 677 | 1,080 | (403) | (37.3) | % | ||||||||||||||||||
Total noninterest income | $ | 12,668 | $ | 12,055 | $ | 613 | 5.1 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
Salaries and employee benefits | $ | 49,307 | $ | 43,769 | $ | 5,538 | 12.7 | % | |||||||||||||||
Occupancy, furniture and equipment | 6,826 | 6,388 | 438 | 6.9 | % | ||||||||||||||||||
FDIC insurance and other regulatory assessments | 386 | 353 | 33 | 9.3 | % | ||||||||||||||||||
Professional fees | 4,263 | 2,362 | 1,901 | 80.5 | % | ||||||||||||||||||
Amortization of intangible assets | 2,913 | 3,274 | (361) | (11.0) | % | ||||||||||||||||||
Advertising and promotion | 1,929 | 1,403 | 526 | 37.5 | % | ||||||||||||||||||
Communications and technology | 11,935 | 7,090 | 4,845 | 68.3 | % | ||||||||||||||||||
Travel and entertainment | 1,340 | 1,352 | (12) | (0.9) | % | ||||||||||||||||||
Other | 7,790 | 6,822 | 968 | 14.2 | % | ||||||||||||||||||
Total noninterest expense | $ | 86,689 | $ | 72,813 | $ | 13,876 | 19.1 | % |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | 49,864 | $ | 49,561 | $ | 3,756 | $ | 44 | $ | 103,225 | ||||||||||||||||||||||
Intersegment interest allocations | 2,606 | (2,458) | (148) | — | — | |||||||||||||||||||||||||||
Total interest expense | 2,924 | — | — | 2,031 | 4,955 | |||||||||||||||||||||||||||
Net interest income (expense) | 49,546 | 47,103 | 3,608 | (1,987) | 98,270 | |||||||||||||||||||||||||||
Credit loss expense (benefit) | 2,388 | (52) | 235 | 75 | 2,646 | |||||||||||||||||||||||||||
Net interest income after credit loss expense | 47,158 | 47,155 | 3,373 | (2,062) | 95,624 | |||||||||||||||||||||||||||
Noninterest income | 6,189 | 2,941 | 3,518 | 20 | 12,668 | |||||||||||||||||||||||||||
Noninterest expense | 48,648 | 22,896 | 14,066 | 1,079 | 86,689 | |||||||||||||||||||||||||||
Net income (loss) before income tax expense | $ | 4,699 | $ | 27,200 | $ | (7,175) | $ | (3,121) | $ | 21,603 |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | 46,175 | $ | 47,222 | $ | 3,295 | $ | 43 | $ | 96,735 | ||||||||||||||||||||||
Intersegment interest allocations | 2,452 | (2,341) | (111) | — | — | |||||||||||||||||||||||||||
Total interest expense | 2,073 | — | — | 2,891 | 4,964 | |||||||||||||||||||||||||||
Net interest income (expense) | 46,554 | 44,881 | 3,184 | (2,848) | 91,771 | |||||||||||||||||||||||||||
Credit loss expense (benefit) | (2,399) | 1,164 | 38 | 10 | (1,187) | |||||||||||||||||||||||||||
Net interest income after credit loss expense | 48,953 | 43,717 | 3,146 | (2,858) | 92,958 | |||||||||||||||||||||||||||
Noninterest income | 7,371 | 1,557 | 3,086 | 41 | 12,055 | |||||||||||||||||||||||||||
Noninterest expense | 41,183 | 19,106 | 11,416 | 1,108 | 72,813 | |||||||||||||||||||||||||||
Net income (loss) before income tax expense | $ | 15,141 | $ | 26,168 | $ | (5,184) | $ | (3,925) | $ | 32,200 |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
September 30, 2022 | Banking | Factoring | Payments | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||
Total assets | $ | 5,162,380 | $ | 1,406,367 | $ | 354,179 | $ | 1,041,293 | $ | (2,321,769) | $ | 5,642,450 | ||||||||||||||||||||||||||
Gross loans | $ | 3,849,962 | $ | 1,330,122 | $ | 118,958 | $ | — | $ | (865,738) | $ | 4,433,304 | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2021 | Banking | Factoring | Payments | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||
Total assets | $ | 5,568,826 | $ | 1,679,495 | $ | 293,212 | $ | 1,009,998 | $ | (2,595,281) | $ | 5,956,250 | ||||||||||||||||||||||||||
Gross loans | $ | 4,444,136 | $ | 1,546,361 | $ | 153,176 | $ | 700 | $ | (1,276,801) | $ | 4,867,572 |
(Dollars in thousands) | Three Months Ended September 30, | |||||||||||||||||||||||||
Banking | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Total interest income | $ | 49,864 | $ | 46,175 | $ | 3,689 | 8.0 | % | ||||||||||||||||||
Intersegment interest allocations | 2,606 | 2,452 | 154 | 6.3 | % | |||||||||||||||||||||
Total interest expense | 2,924 | 2,073 | 851 | 41.1 | % | |||||||||||||||||||||
Net interest income (expense) | 49,546 | 46,554 | 2,992 | 6.4 | % | |||||||||||||||||||||
Credit loss expense (benefit) | 2,388 | (2,399) | 4,787 | 199.5 | % | |||||||||||||||||||||
Net interest income after credit loss expense | 47,158 | 48,953 | (1,795) | (3.7) | % | |||||||||||||||||||||
Other noninterest income | 6,189 | 7,371 | (1,182) | (16.0) | % | |||||||||||||||||||||
Noninterest expense | 48,648 | 41,183 | 7,465 | 18.1 | % | |||||||||||||||||||||
Operating income (loss) | $ | 4,699 | $ | 15,141 | $ | (10,442) | (69.0) | % |
(Dollars in thousands) | Three Months Ended September 30, | |||||||||||||||||||||||||
Factoring | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Total interest income | $ | 49,561 | $ | 47,222 | $ | 2,339 | 5.0 | % | ||||||||||||||||||
Intersegment interest allocations | (2,458) | (2,341) | (117) | (5.0) | % | |||||||||||||||||||||
Total interest expense | — | — | — | — | ||||||||||||||||||||||
Net interest income (expense) | 47,103 | 44,881 | 2,222 | 5.0 | % | |||||||||||||||||||||
Credit loss expense (benefit) | (52) | 1,164 | (1,216) | (104.5) | % | |||||||||||||||||||||
Net interest income (expense) after credit loss expense | 47,155 | 43,717 | 3,438 | 7.9 | % | |||||||||||||||||||||
Noninterest income | 2,941 | 1,557 | 1,384 | 88.9 | % | |||||||||||||||||||||
Noninterest expense | 22,896 | 19,106 | 3,790 | 19.8 | % | |||||||||||||||||||||
Net income (loss) before income tax expense | $ | 27,200 | $ | 26,168 | $ | 1,032 | 3.9 | % |
Three Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Factored receivable period end balance | $ | 1,330,122,000 | $ | 1,479,989,000 | |||||||
Yield on average receivable balance | 14.11 | % | 13.75 | % | |||||||
Current quarter charge-off rate | 0.16 | % | 0.24 | % | |||||||
Factored receivables - transportation concentration | 96 | % | 90 | % | |||||||
Interest income, including fees | $ | 49,561,000 | $ | 47,222,000 | |||||||
Non-interest income(1) | 2,941,000 | 1,557,000 | |||||||||
Factored receivable total revenue | 52,502,000 | 48,779,000 | |||||||||
Average net funds employed | 1,242,133,000 | 1,235,610,000 | |||||||||
Yield on average net funds employed | 16.77 | % | 15.66 | % | |||||||
Accounts receivable purchased | $ | 3,599,771,000 | $ | 3,531,811,000 | |||||||
Number of invoices purchased | 1,681,489 | 1,535,321 | |||||||||
Average invoice size | $ | 2,141 | $ | 2,300 | |||||||
Average invoice size - transportation | $ | 2,073 | $ | 2,195 | |||||||
Average invoice size - non-transportation | $ | 5,701 | $ | 4,944 |
(Dollars in thousands) | Three Months Ended September 30, | |||||||||||||||||||||||||
Payments | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Total interest income | $ | 3,756 | $ | 3,295 | $ | 461 | 14.0 | % | ||||||||||||||||||
Intersegment interest allocations | (148) | (111) | (37) | (33.3) | % | |||||||||||||||||||||
Total interest expense | — | — | — | — | % | |||||||||||||||||||||
Net interest income (expense) | 3,608 | 3,184 | 424 | 13.3 | % | |||||||||||||||||||||
Credit loss expense (benefit) | 235 | 38 | 197 | 518.4 | % | |||||||||||||||||||||
Net interest income after credit loss expense | 3,373 | 3,146 | 227 | 7.2 | % | |||||||||||||||||||||
Noninterest income | 3,518 | 3,086 | 432 | 14.0 | % | |||||||||||||||||||||
Noninterest expense | 14,066 | 11,416 | 2,650 | 23.2 | % | |||||||||||||||||||||
Net income (loss) before income tax expense | $ | (7,175) | $ | (5,184) | $ | (1,991) | (38.4) | % |
Three Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Factored receivable period end balance | $ | 118,958,000 | $ | 127,039,000 | |||||||
Interest income | $ | 3,756,000 | $ | 3,295,000 | |||||||
Noninterest income | 3,518,000 | 3,086,000 | |||||||||
Total revenue | $ | 7,274,000 | $ | 6,381,000 | |||||||
Operating income (loss) | $ | (7,175,000) | $ | (5,184,000) | |||||||
Interest expense | 148,000 | 111,000 | |||||||||
Depreciation and software amortization expense | 120,000 | 77,000 | |||||||||
Intangible amortization expense | 1,450,000 | 1,490,000 | |||||||||
Earnings (losses) before interest, taxes, depreciation, and amortization | $ | (5,457,000) | $ | (3,506,000) | |||||||
Number of invoices processed | 4,676,249 | 3,760,948 | |||||||||
Amount of payments processed | $ | 5,951,706,000 | $ | 4,191,424,000 | |||||||
Conforming invoice volume | 144,253 | — | |||||||||
Conforming payment volume | $ | 288,410,000 | $ | — |
(Dollars in thousands) | Three Months Ended September 30, | |||||||||||||||||||||||||
Corporate | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Total interest income | $ | 44 | $ | 43 | $ | 1 | 2.3 | % | ||||||||||||||||||
Intersegment interest allocations | — | — | — | — | ||||||||||||||||||||||
Total interest expense | 2,031 | 2,891 | (860) | (29.7) | % | |||||||||||||||||||||
Net interest income (expense) | (1,987) | (2,848) | 861 | 30.2 | % | |||||||||||||||||||||
Credit loss expense (benefit) | 75 | 10 | 65 | 650.0 | % | |||||||||||||||||||||
Net interest income (expense) after credit loss expense | (2,062) | (2,858) | 796 | 27.9 | % | |||||||||||||||||||||
Other noninterest income | 20 | 41 | (21) | (51.2) | % | |||||||||||||||||||||
Noninterest expense | 1,079 | 1,108 | (29) | (2.6) | % | |||||||||||||||||||||
Net income (loss) before income tax expense | $ | (3,121) | $ | (3,925) | $ | 804 | 20.5 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Average Rate(4) | Average Balance | Interest | Average Rate(4) | ||||||||||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 357,016 | $ | 3,522 | 1.32 | % | $ | 508,279 | $ | 467 | 0.12 | % | ||||||||||||||||||||||||||
Taxable securities | 192,325 | 4,537 | 3.15 | % | 169,607 | 3,343 | 2.64 | % | ||||||||||||||||||||||||||||||
Tax-exempt securities | 14,452 | 278 | 2.57 | % | 31,977 | 620 | 2.59 | % | ||||||||||||||||||||||||||||||
FHLB and other restricted stock | 9,549 | 175 | 2.45 | % | 8,094 | 131 | 2.16 | % | ||||||||||||||||||||||||||||||
Loans (1) | 4,639,280 | 304,455 | 8.77 | % | 4,812,985 | 275,215 | 7.65 | % | ||||||||||||||||||||||||||||||
Total interest earning assets | 5,212,622 | 312,967 | 8.03 | % | 5,530,942 | 279,776 | 6.76 | % | ||||||||||||||||||||||||||||||
Noninterest earning assets: | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 89,932 | 81,419 | ||||||||||||||||||||||||||||||||||||
Other noninterest earning assets | 504,379 | 430,316 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,806,933 | $ | 6,042,677 | ||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||
Interest bearing demand | $ | 861,753 | $ | 1,791 | 0.28 | % | $ | 746,590 | $ | 1,288 | 0.23 | % | ||||||||||||||||||||||||||
Individual retirement accounts | 80,437 | 308 | 0.51 | % | 88,579 | 455 | 0.69 | % | ||||||||||||||||||||||||||||||
Money market | 536,130 | 875 | 0.22 | % | 404,651 | 670 | 0.22 | % | ||||||||||||||||||||||||||||||
Savings | 516,972 | 602 | 0.16 | % | 465,041 | 530 | 0.15 | % | ||||||||||||||||||||||||||||||
Certificates of deposit | 461,862 | 1,697 | 0.49 | % | 674,284 | 3,838 | 0.76 | % | ||||||||||||||||||||||||||||||
Brokered time deposits | 102,793 | 1,052 | 1.37 | % | 134,781 | 259 | 0.26 | % | ||||||||||||||||||||||||||||||
Other brokered deposits | 109,684 | 685 | 0.83 | % | 641,959 | 750 | 0.16 | % | ||||||||||||||||||||||||||||||
Total interest bearing deposits | 2,669,631 | 7,010 | 0.35 | % | 3,155,885 | 7,790 | 0.33 | % | ||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 83,022 | 535 | 0.86 | % | 37,234 | 67 | 0.24 | % | ||||||||||||||||||||||||||||||
Subordinated notes | 107,261 | 3,905 | 4.87 | % | 96,495 | 5,148 | 7.13 | % | ||||||||||||||||||||||||||||||
Junior subordinated debentures | 40,805 | 1,736 | 5.69 | % | 40,256 | 1,331 | 4.42 | % | ||||||||||||||||||||||||||||||
Other borrowings | 8,068 | 4 | 0.07 | % | 146,005 | 367 | 0.34 | % | ||||||||||||||||||||||||||||||
Total interest bearing liabilities | 2,908,787 | 13,190 | 0.61 | % | 3,475,875 | 14,703 | 0.57 | % | ||||||||||||||||||||||||||||||
Noninterest bearing liabilities and equity: | ||||||||||||||||||||||||||||||||||||||
Noninterest bearing demand deposits | 1,924,556 | 1,720,213 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 86,093 | 62,570 | ||||||||||||||||||||||||||||||||||||
Total equity | 887,497 | 784,019 | ||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 5,806,933 | $ | 6,042,677 | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 299,777 | $ | 265,073 | ||||||||||||||||||||||||||||||||||
Interest spread (2) | 7.42 | % | 6.19 | % | ||||||||||||||||||||||||||||||||||
Net interest margin (3) | 7.69 | % | 6.41 | % |
Nine Months Ended September 30, | ||||||||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||||||||
Average Banking loans | $ | 2,958,534 | $ | 3,511,379 | ||||||||||
Average Factoring receivables | 1,527,126 | 1,203,494 | ||||||||||||
Average Payments receivables | 153,620 | 98,112 | ||||||||||||
Average total loans | $ | 4,639,280 | $ | 4,812,985 | ||||||||||
Banking yield | 5.87 | % | 5.31 | % | ||||||||||
Factoring yield | 14.16 | % | 14.19 | % | ||||||||||
Payments Yield | 11.11 | % | 10.82 | % | ||||||||||
Total loan yield | 8.77 | % | 7.65 | % |
Nine Months Ended | ||||||||||||||||||||
September 30, 2022 vs. 2021 | ||||||||||||||||||||
Increase (Decrease) Due to: | Net Increase | |||||||||||||||||||
(Dollars in thousands) | Rate | Volume | ||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 4,547 | $ | (1,492) | $ | 3,055 | ||||||||||||||
Taxable securities | 658 | 536 | 1,194 | |||||||||||||||||
Tax-exempt securities | (5) | (337) | (342) | |||||||||||||||||
FHLB and other restricted stock | 17 | 27 | 44 | |||||||||||||||||
Loans | 40,639 | (11,399) | 29,240 | |||||||||||||||||
Total interest income | 45,856 | (12,665) | 33,191 | |||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||
Interest bearing demand | 264 | 239 | 503 | |||||||||||||||||
Individual retirement accounts | (116) | (31) | (147) | |||||||||||||||||
Money market | (10) | 215 | 205 | |||||||||||||||||
Savings | 12 | 60 | 72 | |||||||||||||||||
Certificates of deposit | (1,361) | (780) | (2,141) | |||||||||||||||||
Brokered time deposits | 1,120 | (327) | 793 | |||||||||||||||||
Other brokered deposits | 3,259 | (3,324) | (65) | |||||||||||||||||
Total interest bearing deposits | 3,168 | (3,948) | (780) | |||||||||||||||||
Federal Home Loan Bank advances | 173 | 295 | 468 | |||||||||||||||||
Subordinated notes | (1,635) | 392 | (1,243) | |||||||||||||||||
Junior subordinated debentures | 382 | 23 | 405 | |||||||||||||||||
Other borrowings | (295) | (68) | (363) | |||||||||||||||||
Total interest expense | 1,793 | (3,306) | (1,513) | |||||||||||||||||
Change in net interest income | $ | 44,063 | $ | (9,359) | $ | 34,704 |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Credit loss expense on loans | $ | 6,102 | $ | (9,390) | $ | 15,492 | 165.0 | % | ||||||||||||||||||
Credit loss expense on off balance sheet credit exposures | (402) | (1,159) | 757 | 65.3 | % | |||||||||||||||||||||
Credit loss expense on held to maturity securities | 348 | (289) | 637 | 220.4 | % | |||||||||||||||||||||
Credit loss expense on available for sale securities | — | — | — | — | ||||||||||||||||||||||
Total credit loss expense | $ | 6,048 | $ | (10,838) | $ | 16,886 | 155.8 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Service charges on deposits | $ | 5,185 | $ | 5,674 | $ | (489) | (8.6 | %) | ||||||||||||||||||
Card income | 6,125 | 6,341 | (216) | (3.4 | %) | |||||||||||||||||||||
Net OREO gains (losses) and valuation adjustments | (133) | (376) | 243 | 64.6 | % | |||||||||||||||||||||
Net gains (losses) on sale or call of securities | 2,514 | 5 | 2,509 | N/M | ||||||||||||||||||||||
Net gains (losses) on sale of loans | 18,310 | 2,965 | 15,345 | 517.5 | % | |||||||||||||||||||||
Fee income | 18,096 | 11,917 | 6,179 | 51.9 | % | |||||||||||||||||||||
Insurance commissions | 4,209 | 3,989 | 220 | 5.5 | % | |||||||||||||||||||||
Other | 17,643 | 9,727 | 7,916 | 81.4 | % | |||||||||||||||||||||
Total noninterest income | $ | 71,949 | $ | 40,242 | $ | 31,707 | 78.8 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Salaries and employee benefits | $ | 149,848 | $ | 121,407 | $ | 28,441 | 23.4 | % | ||||||||||||||||||
Occupancy, furniture and equipment | 19,769 | 18,279 | 1,490 | 8.2 | % | |||||||||||||||||||||
FDIC insurance and other regulatory assessments | 1,179 | 1,830 | (651) | (35.6 | %) | |||||||||||||||||||||
Professional fees | 11,529 | 9,959 | 1,570 | 15.8 | % | |||||||||||||||||||||
Amortization of intangible assets | 9,085 | 7,677 | 1,408 | 18.3 | % | |||||||||||||||||||||
Advertising and promotion | 4,916 | 3,534 | 1,382 | 39.1 | % | |||||||||||||||||||||
Communications and technology | 30,867 | 19,018 | 11,849 | 62.3 | % | |||||||||||||||||||||
Travel and entertainment | 3,864 | 2,725 | 1,139 | 41.8 | % | |||||||||||||||||||||
Other | 22,803 | 20,074 | 2,729 | 13.6 | % | |||||||||||||||||||||
Total noninterest expense | $ | 253,860 | $ | 204,503 | $ | 49,357 | 24.1 | % |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | 138,286 | $ | 161,789 | $ | 12,760 | $ | 132 | $ | 312,967 | ||||||||||||||||||||||
Intersegment interest allocations | 6,651 | (6,312) | (339) | — | — | |||||||||||||||||||||||||||
Total interest expense | 7,547 | — | — | 5,643 | 13,190 | |||||||||||||||||||||||||||
Net interest income (expense) | 137,390 | 155,477 | 12,421 | (5,511) | 299,777 | |||||||||||||||||||||||||||
Credit loss expense (benefit) | 2,638 | 1,961 | 405 | 1,044 | 6,048 | |||||||||||||||||||||||||||
Net interest income after credit loss expense | 134,752 | 153,516 | 12,016 | (6,555) | 293,729 | |||||||||||||||||||||||||||
Noninterest income | 34,496 | 20,333 | 17,069 | 51 | 71,949 | |||||||||||||||||||||||||||
Noninterest expense | 138,741 | 66,408 | 46,062 | 2,649 | 253,860 | |||||||||||||||||||||||||||
Net income (loss) before income tax expense | $ | 30,507 | $ | 107,441 | $ | (16,977) | $ | (9,153) | $ | 111,818 |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | Banking | Factoring | Payments | Corporate | Consolidated | |||||||||||||||||||||||||||
Total interest income | $ | 144,087 | $ | 127,699 | $ | 7,939 | $ | 51 | $ | 279,776 | ||||||||||||||||||||||
Intersegment interest allocations | 8,117 | (7,700) | (417) | — | — | |||||||||||||||||||||||||||
Total interest expense | 8,225 | — | — | 6,478 | 14,703 | |||||||||||||||||||||||||||
Net interest income (expense) | 143,979 | 119,999 | 7,522 | (6,427) | 265,073 | |||||||||||||||||||||||||||
Credit loss expense (benefit) | (19,187) | 8,091 | 548 | (290) | (10,838) | |||||||||||||||||||||||||||
Net interest income after credit loss expense | 163,166 | 111,908 | 6,974 | (6,137) | 275,911 | |||||||||||||||||||||||||||
Noninterest income | 25,139 | 10,710 | 4,242 | 151 | 40,242 | |||||||||||||||||||||||||||
Noninterest expense | 122,497 | 52,433 | 26,393 | 3,180 | 204,503 | |||||||||||||||||||||||||||
Net income (loss) before income tax expense | $ | 65,808 | $ | 70,185 | $ | (15,177) | $ | (9,166) | $ | 111,650 |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
September 30, 2022 | Banking | Factoring | Payments | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||
Total assets | $ | 5,162,380 | $ | 1,406,367 | $ | 354,179 | $ | 1,041,293 | $ | (2,321,769) | $ | 5,642,450 | ||||||||||||||||||||||||||
Gross loans | $ | 3,849,962 | $ | 1,330,122 | $ | 118,958 | $ | — | $ | (865,738) | $ | 4,433,304 |
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
December 31, 2021 | Banking | Factoring | Payments | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||
Total assets | $ | 5,568,826 | $ | 1,679,495 | $ | 293,212 | $ | 1,009,998 | $ | (2,595,281) | $ | 5,956,250 | ||||||||||||||||||||||||||
Gross loans | $ | 4,444,136 | $ | 1,546,361 | $ | 153,176 | $ | 700 | $ | (1,276,801) | $ | 4,867,572 |
(Dollars in thousands) | Nine Months Ended September 30, | % Change | ||||||||||||||||||||||||
Banking | 2022 | 2021 | $ Change | |||||||||||||||||||||||
Total interest income | $ | 138,286 | $ | 144,087 | $ | (5,801) | (4.0 | %) | ||||||||||||||||||
Intersegment interest allocations | 6,651 | 8,117 | (1,466) | (18.1 | %) | |||||||||||||||||||||
Total interest expense | 7,547 | 8,225 | (678) | (8.2 | %) | |||||||||||||||||||||
Net interest income | 137,390 | 143,979 | (6,589) | (4.6 | %) | |||||||||||||||||||||
Credit loss expense (benefit) | 2,638 | (19,187) | 21,825 | 113.7 | % | |||||||||||||||||||||
Net interest income after credit loss expense | 134,752 | 163,166 | (28,414) | (17.4 | %) | |||||||||||||||||||||
Noninterest income | 34,496 | 25,139 | 9,357 | 37.2 | % | |||||||||||||||||||||
Noninterest expense | 138,741 | 122,497 | 16,244 | 13.3 | % | |||||||||||||||||||||
Net income (loss) before income tax expense | $ | 30,507 | $ | 65,808 | $ | (35,301) | (53.6 | %) |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
Banking | |||||||||||
Commercial real estate | $ | 669,742 | $ | 632,775 | |||||||
Construction, land development, land | 75,527 | 123,464 | |||||||||
1-4 family residential | 122,594 | 123,115 | |||||||||
Farmland | 66,595 | 77,394 | |||||||||
Commercial - General | 319,016 | 295,662 | |||||||||
Commercial - Paycheck Protection Program | 60 | 27,197 | |||||||||
Commercial - Agriculture | 60,409 | 70,127 | |||||||||
Commercial - Equipment | 439,604 | 621,437 | |||||||||
Commercial - Asset-based lending | 238,119 | 281,659 | |||||||||
Commercial - Liquid Credit | 224,991 | 134,347 | |||||||||
Consumer | 9,506 | 10,885 | |||||||||
Mortgage Warehouse | 758,061 | 769,973 | |||||||||
Total banking loans | $ | 2,984,224 | $ | 3,168,035 |
(Dollars in thousands) | Nine Months Ended September 30, | |||||||||||||||||||||||||
Factoring | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Total interest income | $ | 161,789 | $ | 127,699 | $ | 34,090 | 26.7 | % | ||||||||||||||||||
Intersegment interest allocations | (6,312) | (7,700) | 1,388 | 18.0 | % | |||||||||||||||||||||
Total interest expense | — | — | — | — | ||||||||||||||||||||||
Net interest income | 155,477 | 119,999 | 35,478 | 29.6 | % | |||||||||||||||||||||
Credit loss expense (benefit) | 1,961 | 8,091 | (6,130) | (75.8 | %) | |||||||||||||||||||||
Net interest income after credit loss expense | 153,516 | 111,908 | 41,608 | 37.2 | % | |||||||||||||||||||||
Noninterest income | 20,333 | 10,710 | 9,623 | 89.9 | % | |||||||||||||||||||||
Noninterest expense | 66,408 | 52,433 | 13,975 | 26.7 | % | |||||||||||||||||||||
Net income (loss) before income tax expense | $ | 107,441 | $ | 70,185 | $ | 37,256 | 53.1 | % |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Factored receivable period end balance | $ | 1,330,122,000 | $ | 1,479,989,000 | |||||||
Yield on average receivable balance | 14.16 | % | 14.19 | % | |||||||
Year to date charge-off rate(1) | 0.19 | % | 3.76 | % | |||||||
Factored receivables - transportation concentration | 96 | % | 90 | % | |||||||
Interest income, including fees | $ | 161,789,000 | $ | 127,699,000 | |||||||
Non-interest income(2) | 20,333,000 | 6,056,000 | |||||||||
Factored receivable total revenue | 182,122,000 | 133,755,000 | |||||||||
Average net funds employed | 1,367,041,000 | 1,082,610,000 | |||||||||
Yield on average net funds employed | 17.81 | % | 16.52 | % | |||||||
Accounts receivable purchased | $ | 11,665,223,000 | $ | 9,092,541,000 | |||||||
Number of invoices purchased | 5,011,222 | 4,125,694 | |||||||||
Average invoice size | $ | 2,328 | $ | 2,204 | |||||||
Average invoice size - transportation | $ | 2,213 | $ | 2,096 | |||||||
Average invoice size - non-transportation | $ | 5,927 | $ | 4,812 |
(Dollars in thousands) | Nine Months Ended September 30, | |||||||||||||||||||||||||
Payments | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Total interest income | $ | 12,760 | $ | 7,939 | $ | 4,821 | 60.7 | % | ||||||||||||||||||
Intersegment interest allocations | (339) | (417) | 78 | 18.7 | % | |||||||||||||||||||||
Total interest expense | — | — | — | — | % | |||||||||||||||||||||
Net interest income | 12,421 | 7,522 | 4,899 | 65.1 | % | |||||||||||||||||||||
Credit loss expense (benefit) | 405 | 548 | (143) | (26.1) | % | |||||||||||||||||||||
Net interest income after credit loss expense | 12,016 | 6,974 | 5,042 | 72.3 | % | |||||||||||||||||||||
Noninterest income | 17,069 | 4,242 | 12,827 | 302.4 | % | |||||||||||||||||||||
Noninterest expense | 46,062 | 26,393 | 19,669 | 74.5 | % | |||||||||||||||||||||
Net income (loss) before income tax expense | $ | (16,977) | $ | (15,177) | $ | (1,800) | (11.9) | % |
Nine Months Ended | |||||||||||
2022 | 2021 | ||||||||||
Factored receivable period end balance | $ | 118,958,000 | $ | 127,039,000 | |||||||
Interest income | $ | 12,760,000 | $ | 7,939,000 | |||||||
Noninterest income | 17,069,000 | 4,242,000 | |||||||||
Total revenue | $ | 29,829,000 | $ | 12,181,000 | |||||||
Operating income (loss) | $ | (16,977,000) | $ | (15,177,000) | |||||||
Interest expense | 339,000 | 417,000 | |||||||||
Depreciation and software amortization expense | 331,000 | 210,000 | |||||||||
Intangible amortization expense | 4,417,000 | 1,987,000 | |||||||||
Earnings (losses) before interest, taxes, depreciation, and amortization | $ | (11,890,000) | $ | (12,563,000) | |||||||
Transaction costs | $ | — | $ | 2,992,000 | |||||||
Adjusted earnings (losses) before interest, taxes, depreciation, and amortization(1) | $ | (11,890,000) | $ | (9,571,000) | |||||||
Number of invoices processed | 13,043,134 | 9,455,740 | |||||||||
Amount of payments processed | $ | 17,686,453,000 | $ | 9,919,865,000 | |||||||
Conforming invoice volume | 315,015 | — | |||||||||
Conforming payment volume | $ | 671,291,000 | $ | — |
(Dollars in thousands) | Nine Months Ended September 30, | % Change | ||||||||||||||||||||||||
Corporate | 2022 | 2021 | $ Change | |||||||||||||||||||||||
Total interest income | $ | 132 | $ | 51 | $ | 81 | 158.8 | % | ||||||||||||||||||
Intersegment interest allocations | — | — | — | — | ||||||||||||||||||||||
Total interest expense | 5,643 | 6,478 | (835) | (12.9 | %) | |||||||||||||||||||||
Net interest income (expense) | (5,511) | (6,427) | 916 | 14.3 | % | |||||||||||||||||||||
Credit loss expense (benefit) | 1,044 | (290) | 1,334 | 460.0 | % | |||||||||||||||||||||
Net interest income (expense) after credit loss expense | (6,555) | (6,137) | (418) | (6.8 | %) | |||||||||||||||||||||
Noninterest income | 51 | 151 | (100) | (66.2 | %) | |||||||||||||||||||||
Noninterest expense | 2,649 | 3,180 | (531) | (16.7 | %) | |||||||||||||||||||||
Net income (loss) before income tax expense | $ | (9,153) | $ | (9,166) | $ | 13 | 0.1 | % |
September 30, 2022 | December 31, 2021 | $ Change | % Change | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | % of Total | % of Total | ||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 669,742 | 15 | % | $ | 632,775 | 13 | % | $ | 36,967 | 5.8 | % | ||||||||||||||||||||||||||
Construction, land development, land | 75,527 | 2 | % | 123,464 | 3 | % | (47,937) | (38.8 | %) | |||||||||||||||||||||||||||||
1-4 family residential | 122,594 | 3 | % | 123,115 | 3 | % | (521) | (0.4 | %) | |||||||||||||||||||||||||||||
Farmland | 66,595 | 2 | % | 77,394 | 2 | % | (10,799) | (14.0 | %) | |||||||||||||||||||||||||||||
Commercial | 1,282,199 | 29 | % | 1,430,429 | 29 | % | (148,230) | (10.4 | %) | |||||||||||||||||||||||||||||
Factored receivables | 1,449,080 | 32 | % | 1,699,537 | 34 | % | (250,457) | (14.7 | %) | |||||||||||||||||||||||||||||
Consumer | 9,506 | — | % | 10,885 | — | % | (1,379) | (12.7 | %) | |||||||||||||||||||||||||||||
Mortgage warehouse | 758,061 | 17 | % | 769,973 | 16 | % | (11,912) | (1.5 | %) | |||||||||||||||||||||||||||||
Total Loans | $ | 4,433,304 | 100 | % | $ | 4,867,572 | 100 | % | $ | (434,268) | (8.9 | %) |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | $ Change | % Change | ||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Equipment | $ | 439,604 | $ | 621,437 | $ | (181,833) | (29.3 | %) | ||||||||||||||||||
Asset-based lending | 238,119 | 281,659 | (43,540) | (15.5 | %) | |||||||||||||||||||||
Liquid credit | 224,991 | 134,347 | 90,644 | 67.5 | % | |||||||||||||||||||||
Paycheck Protection Program loans | 60 | 27,197 | (27,137) | (99.8 | %) | |||||||||||||||||||||
Agriculture | 60,409 | 70,127 | (9,718) | (13.9 | %) | |||||||||||||||||||||
Other commercial lending | 319,016 | 295,662 | 23,354 | 7.9 | % | |||||||||||||||||||||
Total commercial loans | $ | 1,282,199 | $ | 1,430,429 | $ | (148,230) | (10.4 | %) |
September 30, 2022 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | One Year or Less | After One but within Five Years | After Five but within Fifteen Years | After Fifteen Years | Total | |||||||||||||||||||||||||||
Commercial real estate | $ | 135,892 | $ | 453,614 | $ | 75,522 | $ | 4,714 | $ | 669,742 | ||||||||||||||||||||||
Construction, land development, land | 24,508 | 47,742 | 3,243 | 34 | 75,527 | |||||||||||||||||||||||||||
1-4 family residential | 8,896 | 31,273 | 16,477 | 65,948 | 122,594 | |||||||||||||||||||||||||||
Farmland | 11,688 | 21,976 | 28,756 | 4,175 | 66,595 | |||||||||||||||||||||||||||
Commercial | 381,223 | 778,603 | 122,063 | 310 | 1,282,199 | |||||||||||||||||||||||||||
Factored receivables | 1,449,080 | — | — | — | 1,449,080 | |||||||||||||||||||||||||||
Consumer | 1,273 | 7,055 | 1,169 | 9 | 9,506 | |||||||||||||||||||||||||||
Mortgage warehouse | 758,061 | — | — | — | 758,061 | |||||||||||||||||||||||||||
$ | 2,770,621 | $ | 1,340,263 | $ | 247,230 | $ | 75,190 | $ | 4,433,304 | |||||||||||||||||||||||
Sensitivity of loans to changes in interest rates: | ||||||||||||||||||||||||||||||||
Predetermined (fixed) interest rates | $ | 819,714 | $ | 23,284 | $ | 6,454 | ||||||||||||||||||||||||||
Floating interest rates | 520,549 | 223,946 | 68,736 | |||||||||||||||||||||||||||||
Total | $ | 1,340,263 | $ | 247,230 | $ | 75,190 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Nonperforming loans: | ||||||||||||||
Commercial real estate | $ | 1,108 | $ | 2,025 | ||||||||||
Construction, land development, land | 151 | 964 | ||||||||||||
1-4 family residential | 1,710 | 1,684 | ||||||||||||
Farmland | 414 | 2,044 | ||||||||||||
Commercial | 17,868 | 8,842 | ||||||||||||
Factored receivables | 34,515 | 30,485 | ||||||||||||
Consumer | 154 | 240 | ||||||||||||
Mortgage warehouse | — | — | ||||||||||||
Total nonperforming loans | 55,920 | 46,284 | ||||||||||||
Held to maturity securities | 5,130 | 5,612 | ||||||||||||
Other real estate owned, net | — | 524 | ||||||||||||
Other repossessed assets | 1,751 | 2,368 | ||||||||||||
Total nonperforming assets | $ | 62,801 | $ | 54,788 | ||||||||||
Nonperforming assets to total assets | 1.11 | % | 0.92 | % | ||||||||||
Nonperforming loans to total loans held for investment | 1.26 | % | 0.95 | % | ||||||||||
Total past due loans to total loans held for investment | 2.33 | % | 2.86 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Allocated Allowance | % of Loan Portfolio | ACL to Loans | Allocated Allowance | % of Loan Portfolio | ACL to Loans | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 4,794 | 15 | % | 0.72 | % | $ | 3,961 | 13 | % | 0.63 | % | ||||||||||||||||||||||||||
Construction, land development, land | 995 | 2 | % | 1.32 | % | 827 | 3 | % | 0.67 | % | ||||||||||||||||||||||||||||
1-4 family residential | 742 | 3 | % | 0.61 | % | 468 | 3 | % | 0.38 | % | ||||||||||||||||||||||||||||
Farmland | 467 | 2 | % | 0.70 | % | 562 | 2 | % | 0.73 | % | ||||||||||||||||||||||||||||
Commercial | 16,020 | 29 | % | 1.25 | % | 14,485 | 29 | % | 1.01 | % | ||||||||||||||||||||||||||||
Factored receivables | 20,134 | 32 | % | 1.39 | % | 20,915 | 34 | % | 1.23 | % | ||||||||||||||||||||||||||||
Consumer | 202 | — | % | 2.12 | % | 226 | — | % | 2.08 | % | ||||||||||||||||||||||||||||
Mortgage warehouse | 757 | 17 | % | 0.10 | % | 769 | 16 | % | 0.10 | % | ||||||||||||||||||||||||||||
Total Loans | $ | 44,111 | 100 | % | 0.99 | % | $ | 42,213 | 100 | % | 0.87 | % |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
Allowance for credit losses on loans | $ | 44,111 | $ | 42,213 | |||||||
Total loans held for investment | $ | 4,433,304 | $ | 4,867,572 | |||||||
Allowance to total loans held for investment | 0.99 | % | 0.87 | % | |||||||
Nonaccrual loans | $ | 20,828 | $ | 15,034 | |||||||
Total loans held for investment | $ | 4,433,304 | $ | 4,867,572 | |||||||
Nonaccrual loans to total loans held for investment | 0.47 | % | 0.31 | % | |||||||
Allowance for credit losses on loans | $ | 44,111 | $ | 42,213 | |||||||
Nonaccrual loans | $ | 20,828 | $ | 15,034 | |||||||
Allowance for credit losses to nonaccrual loans | 211.79 | % | 280.78 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Net Charge-Offs | Average Loans HFI | Net Charge-Off Ratio | Net Charge-Offs | Average Loans HFI | Net Charge-Off Ratio | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | 670,912 | — | % | $ | 15 | $ | 675,859 | — | % | ||||||||||||||||||||||||||
Construction, land development, land | (1) | 84,116 | — | % | (1) | 182,550 | — | % | ||||||||||||||||||||||||||||||
1-4 family residential | (1) | 127,574 | — | % | (4) | 130,808 | — | % | ||||||||||||||||||||||||||||||
Farmland | — | 67,708 | — | % | — | 86,236 | — | % | ||||||||||||||||||||||||||||||
Commercial | 149 | 1,258,735 | 0.01 | % | 211 | 1,432,667 | 0.01 | % | ||||||||||||||||||||||||||||||
Factored receivables | 2,261 | 1,524,625 | 0.15 | % | 3,358 | 1,478,257 | 0.23 | % | ||||||||||||||||||||||||||||||
Consumer | 57 | 9,730 | 0.59 | % | 139 | 12,197 | 1.14 | % | ||||||||||||||||||||||||||||||
Mortgage warehouse | — | 610,844 | — | % | — | 772,275 | — | % | ||||||||||||||||||||||||||||||
Total Loans | $ | 2,465 | $ | 4,354,244 | 0.06 | % | $ | 3,718 | $ | 4,770,849 | 0.08 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Net Charge-Offs | Average Loans HFI | Net Charge-Off Ratio | Net Charge-Offs | Average Loans HFI | Net Charge-Off Ratio | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 48 | $ | 650,006 | 0.01 | % | $ | 7 | $ | 731,836 | — | % | ||||||||||||||||||||||||||
Construction, land development, land | (3) | 109,552 | — | % | 9 | 202,712 | — | % | ||||||||||||||||||||||||||||||
1-4 family residential | (6) | 127,079 | — | % | (64) | 139,517 | (0.05) | % | ||||||||||||||||||||||||||||||
Farmland | — | 71,590 | — | % | — | 94,536 | — | % | ||||||||||||||||||||||||||||||
Commercial | 882 | 1,352,309 | 0.07 | % | (172) | 1,490,058 | (0.01) | % | ||||||||||||||||||||||||||||||
Factored receivables | 3,079 | 1,680,746 | 0.18 | % | 45,359 | 1,301,606 | 3.48 | % | ||||||||||||||||||||||||||||||
Consumer | 204 | 10,166 | 2.01 | % | 193 | 13,661 | 1.41 | % | ||||||||||||||||||||||||||||||
Mortgage warehouse | — | 632,879 | — | % | — | 827,133 | — | % | ||||||||||||||||||||||||||||||
Total Loans | $ | 4,204 | $ | 4,634,327 | 0.09 | % | $ | 45,332 | $ | 4,801,059 | 0.94 | % |
Available For Sale Debt Securities: | |||||||||||||||||||||||
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | $ Change | % Change | |||||||||||||||||||
Mortgage-backed securities, residential | $ | 44,675 | $ | 37,449 | $ | 7,226 | 19.3 | % | |||||||||||||||
Asset-backed securities | 6,476 | 6,764 | (288) | (4.3) | % | ||||||||||||||||||
State and municipal | 14,262 | 26,825 | (12,563) | (46.8) | % | ||||||||||||||||||
CLO Securities | 169,708 | 106,634 | 63,074 | 59.1 | % | ||||||||||||||||||
Corporate bonds | 1,249 | 2,056 | (807) | (39.3) | % | ||||||||||||||||||
SBA pooled securities | 2,064 | 2,698 | (634) | (23.5) | % | ||||||||||||||||||
$ | 238,434 | $ | 182,426 | $ | 56,008 | 30.7 | % |
Maturity as of September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One Year or Less | After One but within Five Years | After Five but within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Average Yield | Amortized Cost | Average Yield | Amortized Cost | Average Yield | Amortized Cost | Average Yield | Amortized Cost | Average Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 1,837 | 1.97 | % | $ | 9,167 | 3.90 | % | $ | 2,111 | 2.45 | % | $ | 36,847 | 3.32 | % | $ | 49,962 | 3.35 | % | ||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | — | — | % | — | — | % | 5,000 | 1.32 | % | 1,501 | 3.72 | % | 6,501 | 1.88 | % | |||||||||||||||||||||||||||||||||||||||||||||||
State and municipal | 1,027 | 2.64 | % | 2,621 | 3.06 | % | 1,168 | 2.48 | % | 9,669 | 2.50 | % | 14,485 | 2.61 | % | |||||||||||||||||||||||||||||||||||||||||||||||
CLO securities | — | — | % | — | — | % | 52,265 | 5.44 | % | 123,121 | 4.15 | % | 175,386 | 4.53 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 500 | 3.74 | % | 501 | 4.23 | % | — | — | % | 269 | 5.07 | % | 1,270 | 4.20 | % | |||||||||||||||||||||||||||||||||||||||||||||||
SBA pooled securities | — | — | % | 2 | 5.12 | % | 20 | 8.77 | % | 2,124 | 4.07 | % | 2,146 | 4.11 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total available for sale securities | $ | 3,364 | 2.44 | % | $ | 12,291 | 3.74 | % | $ | 60,564 | 4.95 | % | $ | 173,531 | 3.88 | % | $ | 249,750 | 4.11 | % | ||||||||||||||||||||||||||||||||||||||||||
Held to maturity securities: | $ | — | — | % | $ | — | — | % | $ | 6,579 | 2.44 | % | $ | — | — | % | $ | 6,579 | 2.44 | % |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | $ Change | % Change | ||||||||||||||||||||||
Noninterest bearing demand | $ | 1,897,309 | $ | 1,925,370 | $ | (28,061) | (1.5 | %) | ||||||||||||||||||
Interest bearing demand | 883,581 | 830,019 | 53,562 | 6.5 | % | |||||||||||||||||||||
Individual retirement accounts | 74,423 | 83,410 | (8,987) | (10.8 | %) | |||||||||||||||||||||
Money market | 505,082 | 520,358 | (15,276) | (2.9 | %) | |||||||||||||||||||||
Savings | 546,862 | 504,146 | 42,716 | 8.5 | % | |||||||||||||||||||||
Certificates of deposit | 373,734 | 533,206 | (159,472) | (29.9 | %) | |||||||||||||||||||||
Brokered time deposits | 160,363 | 40,125 | 120,238 | 299.7 | % | |||||||||||||||||||||
Other brokered deposits | — | 210,045 | (210,045) | (100.0 | %) | |||||||||||||||||||||
Total Deposits | $ | 4,441,354 | $ | 4,646,679 | $ | (205,325) | (4.4 | %) |
(Dollars in thousands) | Over $250,000 | |||||||
Maturity | ||||||||
3 months or less | $ | 23,581 | ||||||
Over 3 through 6 months | 11,467 | |||||||
Over 6 through 12 months | 17,264 | |||||||
Over 12 months | 6,661 | |||||||
$ | 58,973 |
Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Weighted Avg Rates | % of Total | Average Balance | Weighted Avg Rates | % of Total | ||||||||||||||||||||||||||||||||
Interest bearing demand | $ | 879,851 | 0.37 | % | 20 | % | $ | 779,625 | 0.22 | % | 16 | % | ||||||||||||||||||||||||||
Individual retirement accounts | 77,004 | 0.50 | % | 2 | % | 86,571 | 0.58 | % | 2 | % | ||||||||||||||||||||||||||||
Money market | 524,483 | 0.24 | % | 12 | % | 417,435 | 0.21 | % | 9 | % | ||||||||||||||||||||||||||||
Savings | 524,106 | 0.16 | % | 12 | % | 479,915 | 0.15 | % | 10 | % | ||||||||||||||||||||||||||||
Certificates of deposit | 407,130 | 0.55 | % | 9 | % | 595,001 | 0.48 | % | 12 | % | ||||||||||||||||||||||||||||
Brokered time deposits | 186,856 | 1.59 | % | 4 | % | 99,116 | 0.12 | % | 2 | % | ||||||||||||||||||||||||||||
Other brokered deposits | 26,758 | — | % | 1 | % | 441,446 | 0.20 | % | 9 | % | ||||||||||||||||||||||||||||
Total interest bearing deposits | 2,626,188 | 0.41 | % | 60 | % | 2,899,109 | 0.27 | % | 60 | % | ||||||||||||||||||||||||||||
Noninterest bearing demand | 1,885,111 | — | 40 | % | 1,912,398 | — | 40 | % | ||||||||||||||||||||||||||||||
Total deposits | $ | 4,511,299 | 0.24 | % | 100 | % | $ | 4,811,507 | 0.16 | % | 100 | % | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Weighted Avg Yields | % of Total | Average Balance | Weighted Avg Yields | % of Total | ||||||||||||||||||||||||||||||||
Interest bearing demand | $ | 861,753 | 0.28 | % | 19 | % | $ | 746,590 | 0.23 | % | 15 | % | ||||||||||||||||||||||||||
Individual retirement accounts | 80,437 | 0.51 | % | 2 | % | 88,579 | 0.69 | % | 2 | % | ||||||||||||||||||||||||||||
Money market | 536,130 | 0.22 | % | 12 | % | 404,651 | 0.22 | % | 8 | % | ||||||||||||||||||||||||||||
Savings | 516,972 | 0.16 | % | 11 | % | 465,041 | 0.15 | % | 10 | % | ||||||||||||||||||||||||||||
Certificates of deposit | 461,862 | 0.49 | % | 10 | % | 674,284 | 0.76 | % | 14 | % | ||||||||||||||||||||||||||||
Brokered time deposits | 102,793 | 1.37 | % | 2 | % | 134,781 | 0.26 | % | 3 | % | ||||||||||||||||||||||||||||
Other brokered deposits | 109,684 | 0.83 | % | 2 | % | 641,959 | 0.16 | % | 13 | % | ||||||||||||||||||||||||||||
Total interest bearing deposits | 2,669,631 | 0.35 | % | 58 | % | 3,155,885 | 0.33 | % | 65 | % | ||||||||||||||||||||||||||||
Noninterest bearing demand | 1,924,556 | — | 42 | % | 1,720,213 | — | 35 | % | ||||||||||||||||||||||||||||||
Total deposits | $ | 4,594,187 | 0.20 | % | 100 | % | $ | 4,876,098 | 0.21 | % | 100 | % |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Amount outstanding at end of period | $ | 13,463 | $ | 2,103 | ||||||||||
Weighted average interest rate at end of period | 0.03 | % | 0.03 | % | ||||||||||
Average daily balance during the period | $ | 7,171 | $ | 5,985 | ||||||||||
Weighted average interest rate during the period | 0.03 | % | 0.03 | % | ||||||||||
Maximum month-end balance during the period | $ | 13,463 | $ | 12,405 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Amount outstanding at end of period | $ | 30,000 | $ | 180,000 | ||||||||||
Weighted average interest rate at end of period | 2.76 | % | 0.15 | % | ||||||||||
Average amount outstanding during the period | 83,022 | 37,671 | ||||||||||||
Weighted average interest rate during the period | 0.86 | % | 0.24 | % | ||||||||||
Highest month end balance during the period | 230,000 | 180,000 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Amount outstanding at end of period | $ | — | $ | 27,144 | ||||||||||
Weighted average interest rate at end of period | — | % | 0.35 | % | ||||||||||
Average amount outstanding during the period | 896 | 118,880 | ||||||||||||
Weighted average interest rate during the period | 0.32 | % | 0.35 | % | ||||||||||
Highest month end balance during the period | — | 181,635 |
(Dollars in thousands) | Face Value | Carrying Value | Maturity Date | Current Interest Rate | First Repricing Date | Variable Interest Rate at Repricing Date | Initial Issuance Costs | |||||||||||||||||||||||||||||||||||||
Subordinated Notes issued November 27, 2019 | $ | 39,500 | $ | 38,780 | 2029 | 4.875% | 11/27/2024 | Three Month LIBOR plus 3.330% | $ | 1,218 | ||||||||||||||||||||||||||||||||||
Subordinated Notes issued August 26, 2021 | 70,000 | 68,807 | 2031 | 3.500% | 9/01/2026 | Three Month SOFR(1) plus 2.860% | $ | 1,776 | ||||||||||||||||||||||||||||||||||||
$ | 109,500 | $ | 107,587 |
(Dollars in thousands) | Face Value | Carrying Value | Maturity Date | Interest Rate | ||||||||||||||||||||||
National Bancshares Capital Trust II | $ | 15,464 | $ | 13,452 | September 2033 | LIBOR + 3.00% | ||||||||||||||||||||
National Bancshares Capital Trust III | 17,526 | 13,353 | July 2036 | LIBOR + 1.64% | ||||||||||||||||||||||
ColoEast Capital Trust I | 5,155 | 3,739 | September 2035 | LIBOR + 1.60% | ||||||||||||||||||||||
ColoEast Capital Trust II | 6,700 | 4,847 | March 2037 | LIBOR + 1.79% | ||||||||||||||||||||||
Valley Bancorp Statutory Trust I | 3,093 | 2,903 | September 2032 | LIBOR + 3.40% | ||||||||||||||||||||||
Valley Bancorp Statutory Trust II | 3,093 | 2,722 | July 2034 | LIBOR + 2.75% | ||||||||||||||||||||||
$ | 51,031 | $ | 41,016 |
Payments Due by Period - September 30, 2022 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Total | One Year or Less | After One but within Three Years | After Three but within Five Years | After Five Years | |||||||||||||||||||||||||||
Customer repurchase agreements | $ | 13,463 | $ | 13,463 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Federal Home Loan Bank advances | 30,000 | 30,000 | ||||||||||||||||||||||||||||||
Subordinated notes | 109,500 | — | — | — | 109,500 | |||||||||||||||||||||||||||
Junior subordinated debentures | 51,031 | — | — | — | 51,031 | |||||||||||||||||||||||||||
Operating lease agreements | 39,961 | 5,600 | 10,523 | 9,751 | 14,087 | |||||||||||||||||||||||||||
Time deposits with stated maturity dates | 608,520 | 477,072 | 119,484 | 10,379 | 1,585 | |||||||||||||||||||||||||||
Total contractual obligations | $ | 852,475 | $ | 496,135 | $ | 130,007 | $ | 50,130 | $ | 176,203 |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Following 12 Months | Months 13-24 | Following 12 Months | Months 13-24 | |||||||||||||||||||||||
+400 basis points | 17.3 | % | 19.0 | % | 17.5 | % | 23.6 | % | ||||||||||||||||||
+300 basis points | 12.9 | % | 14.1 | % | 13.1 | % | 18.1 | % | ||||||||||||||||||
+200 basis points | 8.5 | % | 9.2 | % | 8.7 | % | 12.8 | % | ||||||||||||||||||
+100 basis points | 4.2 | % | 4.5 | % | 4.4 | % | 7.5 | % | ||||||||||||||||||
Flat rates | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||
-100 basis points | (4.3 | %) | (4.7 | %) | (2.7 | %) | (1.4 | %) |
Economic Value of Equity at Risk (%) | ||||||||||||||
September 30, 2022 | December 31, 2021 | |||||||||||||
+400 basis points | 19.4 | % | 31.1 | % | ||||||||||
+300 basis points | 15.1 | % | 24.3 | % | ||||||||||
+200 basis points | 10.5 | % | 16.9 | % | ||||||||||
+100 basis points | 5.4 | % | 8.8 | % | ||||||||||
Flat rates | 0.0 | % | 0.0 | % | ||||||||||
-100 basis points | (6.1 | %) | (9.5 | %) |
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). | |||||||
* Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished to the Securities and Exchange Commission upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished. |
TRIUMPH BANCORP, INC. | ||||||||
(Registrant) | ||||||||
Date: | October 19, 2022 | /s/ Aaron P. Graft | ||||||
Aaron P. Graft President and Chief Executive Officer | ||||||||
Date: | October 19, 2022 | /s/ W. Bradley Voss | ||||||
W. Bradley Voss Chief Financial Officer |
October 19, 2022 | |||||||||||
By: | /s/ Aaron P. Graft | ||||||||||
Name: | Aaron P. Graft | ||||||||||
Title: | President and Chief Executive Officer |
October 19, 2022 | |||||||||||
By: | /s/ W. Bradley Voss | ||||||||||
Name: | W. Bradley Voss | ||||||||||
Title: | Executive Vice President and Chief Financial Officer |
By: | /s/ Aaron P. Graft | ||||||||||
Name: | Aaron P. Graft | ||||||||||
Title: | President and Chief Executive Officer | ||||||||||
Date: | October 19, 2022 | ||||||||||
By: | /s/ W. Bradley Voss | ||||||||||
Name: | W. Bradley Voss | ||||||||||
Title: | Executive Vice President and Chief Financial Officer | ||||||||||
Date: | October 19, 2022 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|---|---|
Statement of Financial Position [Abstract] | ||||||
Allowance for credit losses | $ 2,430 | $ 2,355 | $ 2,082 | $ 1,737 | $ 1,727 | $ 2,026 |
Fair Value | 5,603 | 5,447 | ||||
Allowance for credit losses | $ 44,111 | $ 42,213 | ||||
Common stock, outstanding (in shares) | 24,478,288 | 25,158,879 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Interest and dividend income: | ||||
Loans, including fees | $ 44,928 | $ 44,882 | $ 129,906 | $ 139,576 |
Factored receivables, including fees | 53,317 | 50,516 | 174,549 | 135,639 |
Securities | 2,308 | 1,126 | 4,815 | 3,963 |
FHLB and other restricted stock | 65 | 28 | 175 | 131 |
Cash deposits | 2,607 | 183 | 3,522 | 467 |
Total interest income | 103,225 | 96,735 | 312,967 | 279,776 |
Interest expense: | ||||
Deposits | 2,743 | 1,948 | 7,010 | 7,790 |
Subordinated notes | 1,304 | 2,449 | 3,905 | 5,148 |
Junior subordinated debentures | 726 | 443 | 1,736 | 1,331 |
Other borrowings | 182 | 124 | 539 | 434 |
Total interest expense | 4,955 | 4,964 | 13,190 | 14,703 |
Net interest income (expense) | 98,270 | 91,771 | 299,777 | 265,073 |
Credit loss expense (benefit) | 2,646 | (1,187) | 6,048 | (10,838) |
Net interest income after credit loss expense (benefit) | 95,624 | 92,958 | 293,729 | 275,911 |
Noninterest income: | ||||
Net OREO gains (losses) and valuation adjustments | (19) | (9) | (133) | (376) |
Net gains (losses) on sale or call of securities | 0 | 4 | 2,514 | 5 |
Net gains (losses) on sale of loans | 1,107 | 377 | 18,310 | 2,965 |
Insurance commissions | 1,191 | 1,231 | 4,209 | 3,989 |
Other | 677 | 1,080 | 17,643 | 9,727 |
Total noninterest income | 12,668 | 12,055 | 71,949 | 40,242 |
Noninterest expense: | ||||
Salaries and employee benefits | 49,307 | 43,769 | 149,848 | 121,407 |
Occupancy, furniture and equipment | 6,826 | 6,388 | 19,769 | 18,279 |
FDIC insurance and other regulatory assessments | 386 | 353 | 1,179 | 1,830 |
Professional fees | 4,263 | 2,362 | 11,529 | 9,959 |
Amortization of intangible assets | 2,913 | 3,274 | 9,085 | 7,677 |
Advertising and promotion | 1,929 | 1,403 | 4,916 | 3,534 |
Communications and technology | 11,935 | 7,090 | 30,867 | 19,018 |
Other | 9,130 | 8,174 | 26,667 | 22,799 |
Total noninterest expense | 86,689 | 72,813 | 253,860 | 204,503 |
Net income before income tax expense | 21,603 | 32,200 | 111,818 | 111,650 |
Income tax expense | 5,374 | 7,771 | 27,068 | 25,316 |
Net income | 16,229 | 24,429 | 84,750 | 86,334 |
Dividends on preferred stock | (801) | (802) | (2,404) | (2,405) |
Net income available to common stockholders | $ 15,428 | $ 23,627 | $ 82,346 | $ 83,929 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.64 | $ 0.95 | $ 3.36 | $ 3.40 |
Diluted (in dollars per share) | $ 0.62 | $ 0.94 | $ 3.28 | $ 3.33 |
Service charges on deposits | ||||
Noninterest income: | ||||
Revenue | $ 1,558 | $ 2,030 | $ 5,185 | $ 5,674 |
Card income | ||||
Noninterest income: | ||||
Revenue | 2,034 | 2,144 | 6,125 | 6,341 |
Fee income | ||||
Noninterest income: | ||||
Revenue | $ 6,120 | $ 5,198 | $ 18,096 | $ 11,917 |
Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Triumph Bancorp, Inc. (collectively with its subsidiaries, “Triumph”, or the “Company” as applicable) is a financial holding company headquartered in Dallas, Texas offering a diversified line of payments, factoring and banking services. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Triumph CRA Holdings, LLC (“TCRA”), TBK Bank, SSB (“TBK Bank”), TBK Bank’s wholly owned subsidiary Advance Business Capital LLC, which currently operates under the d/b/a of Triumph Business Capital (“TBC”), and TBK Bank’s wholly owned subsidiary Triumph Insurance Group, Inc. (“TIG”). TriumphPay operates as a division of TBK Bank, SSB. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary for a fair presentation. Transactions between the subsidiaries have been eliminated. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Operating Segments The Company’s reportable segments are comprised of strategic business units primarily based upon industry categories and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing. Segment determination also considered organizational structure and is consistent with the presentation of financial information to the chief operating decision maker to evaluate segment performance, develop strategy, and allocate resources. The Company's chief operating decision maker is the Chief Executive Officer of Triumph Bancorp, Inc. Management has determined that the Company has four reportable segments consisting of Banking, Factoring, Payments, and Corporate. The Banking segment includes the operations of TBK Bank. The Banking segment derives its revenue principally from investments in interest-earning assets as well as noninterest income typical for the banking industry. The Factoring segment includes the operations of TBC with revenue derived from factoring services. The Payments segment includes the operations of the TBK Bank's TriumphPay division, which is the payments network for presentment, audit, and payment of over-the-road trucking invoices. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of both invoices where we offer a carrier a quickpay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and from offering freight brokers the ability to settle their invoices with us on an extended term following our payment to their carriers as an additional liquidity option for such freight brokers. The Corporate segment includes holding company financing and investment activities and management and administrative expenses to support the overall operations of the Company. Newly Issued, But Not Yet Effective Accounting Standards In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, "Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings ("TDRs") in ASC 310-40, "Receivables - Troubled Debt Restructurings by Creditors" for entities that have adopted the current expected credit loss ("CECL") model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13"). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, "Financial Instruments—Credit Losses—Measured at Amortized Cost". ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the effect that ASU 2022-02 will have on its consolidated financial statements and related disclosures.
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Acquisitions and Divestitures |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Equipment Loan Sale During the quarter ended June 30, 2022, the Company made the decision to sell a portfolio of equipment loans for cash consideration. The sale closed on June 23, 2022. A summary of the carrying amount of the assets sold and the gain on sale is as follows:
The associated agreement contains a provision that in the event that a sold loan is prepaid in full prior to the due date of the final scheduled contractual payment, the Company will return a pro-rata portion of the premium calculated as of the date of such prepayment in full. As this transaction qualified as a sale of a group of entire financial assets, management must recognize, as proceeds, any assets obtained and liabilities incurred. Thus, management recorded a $708,000 liability for the potential return of premium measured at fair value as of the date of close. Management has elected the fair value option to account for the liability. It is recorded in other liabilities in the Company's Consolidated Balance Sheet and is marked to fair value through earnings at each reporting period. The gain on sale, net of transaction costs, was included in net gains (losses) on sale of loans in the Company’s Consolidated Statements of Income and was allocated to the Banking segment. Factored Receivable Disposal Group On June 30, 2022 and September 6, 2022, the Company entered into and closed two separate agreements to sell two separate portfolios of factored receivables. A summary of the carrying amounts of the assets and liabilities sold and the gains on sale are as follows:
The June 30, 2022 agreement contains a revenue share provision that entitles the Company to an amount equal to fifteen percent of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. As this transaction qualified as a sale of a group of entire financial assets, management recognized, as proceeds, the assets obtained and liabilities incurred. Thus, management recorded a $5,210,000 asset for the contractual right to receive future cash flows from a third party measured at fair value as of the date of close. This is a financial asset for which management elected the fair value option. It is recorded in other assets in the Company's Consolidated Balance Sheet and is marked to fair value through earnings at each reporting period. The September 6, 2022 agreement contains a revenue share provision that entitles the Company to an amount equal to a range of fifteen to twenty percent, depending on client, of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. As this transaction qualified as a sale of a group of entire financial assets, management recognized, as proceeds, the assets obtained and liabilities incurred. Thus, management recorded a $1,027,000 asset for the contractual right to receive future cash flows from a third party measured at fair value as of the date of close. This is a financial asset for which management elected the fair value option. It is recorded in other assets in the Company's Consolidated Balance Sheet and will be marked to fair value through earnings at each reporting period. The gains on sale, net of transaction costs, were included in net gains (losses) on sale of loans in the Company’s Consolidated Statements of Income and were allocated to the Factoring segment. HubTran Inc. On June 1, 2021, the Company, through TriumphPay, a division of the Company's wholly-owned subsidiary TBK Bank, SSB, acquired HubTran, Inc. ("HubTran"), a cloud-based provider of automation software for the trucking industry's back-office. A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows:
The Company has recognized goodwill of $70,441,000, which included measurement period adjustments related to customary settlement adjustments and the finalization of the HubTran stub period tax return and its impact on the acquired deferred tax liability. Goodwill was calculated as the excess of the fair value of consideration exchanged as compared to the fair value of identifiable net assets acquired and was allocated to the Company’s Payments segment. The goodwill in this acquisition resulted from expected synergies and progress in the development of a fully integrated open loop payments network for the transportation industry. The goodwill will not be deducted for tax purposes. The intangible assets recognized include a capitalized software intangible asset with an acquisition date fair value of $16,932,000 which will be amortized on a straight-line basis over its four year estimated useful life and customer relationship intangible assets with an acquisition date fair value of $10,360,000 which will be amortized utilizing an accelerated method over their eleven year estimated useful lives. Revenue and earnings of HubTran since the acquisition date have not been disclosed as the acquired company was merged into the Company and separate financial information is not readily available. Expenses related to the acquisition, including professional fees and other transaction costs, totaling $2,992,000 were recorded in noninterest expense in the consolidated statements of income during the three months ended June 30, 2021. Transportation Financial Solutions On July 8, 2020, the Company, through its wholly-owned subsidiary Advance Business Capital LLC (“ABC”), acquired the transportation factoring assets (the “TFS Acquisition”) of Transport Financial Solutions (“TFS”), a wholly owned subsidiary of Covenant Logistics Group, Inc. ("CVLG"), in exchange for cash consideration of $108,375,000, 630,268 shares of the Company’s common stock valued at approximately $13,942,000, and contingent consideration of up to approximately $9,900,000 to be paid in cash following the twelve-month period ending July 31, 2021. Subsequent to the closing of the TFS Acquisition, the Company identified that approximately $62,200,000 of the assets acquired at closing were advances against future payments to be made to three large clients (and their affiliated entities) of TFS pursuant to long-term contractual arrangements between the obligor on such contracts and such clients (and their affiliated entities) for services that had not yet been performed. On September 23, 2020, the Company and ABC entered into an Account Management Agreement, Amendment to Purchase Agreement and Mutual Release (the “Agreement”) with CVLG and Covenant Transport Solutions, LLC, a wholly owned subsidiary of CVLG (“CTS” and, together with CVLG, "Covenant"). Pursuant to the Agreement, the parties agreed to certain amendments to that certain Accounts Receivable Purchase Agreement (the “ARPA”), dated as of July 8, 2020, by and among ABC, as buyer, CTS, as seller, and the Company, as buyer indirect parent. Such amendments include: •Return of the portion of the purchase price paid under the ARPA consisting of 630,268 shares of Company common stock, which will be accomplished through the sale of such shares by Covenant pursuant to the terms of the Agreement and the surrender of the cash proceeds of such sale (net of brokerage or underwriting fees and commissions) to the Company; •Elimination of the earn-out consideration potentially payable to CTS under the ARPA; and •Modification of the indemnity provisions under the ARPA to eliminate the existing indemnifications for breaches of representations and warranties and to replace such with a newly established indemnification by Covenant in the event ABC incurs losses related to the $62,200,000 in over-formula advances made to specified clients identified in the Agreement (the “Over-Formula Advance Portfolio”). Under the terms of the new indemnification arrangement, Covenant will be responsible for and will indemnify ABC for 100% of the first $30,000,000 of any losses incurred by ABC related to the Over-Formula Advance Portfolio, and for 50% of the next $30,000,000 of any losses incurred by ABC, for total indemnification by Covenant of $45,000,000. Covenant’s indemnification obligations under the Agreement were secured by a pledge of equipment collateral by Covenant with an estimated net orderly liquidation value of $60,000,000 (the “Equipment Collateral”). The Company’s wholly-owned bank subsidiary, TBK Bank, SSB, has provided Covenant with a $45,000,000 line of credit, also secured by the Equipment Collateral, the proceeds of which may be drawn to satisfy Covenant’s indemnification obligations under the Agreement. Pursuant to the Agreement, Triumph and Covenant have agreed to certain terms related to the management of the Over-Formula Advance Portfolio, and the terms by which Covenant may provide assistance to maximize recovery on the Over-Formula Advance Portfolio. Pursuant to the Agreement, the Company and Covenant have provided mutual releases to each other related to any and all claims related to the transactions contemplated by the ARPA or the Over-Formula Advance Portfolio. The indemnification asset created by the ARPA is measured separately from the related covered portfolio. It is not contractually embedded in the covered portfolio nor is it transferable with the covered portfolio should the Company choose to dispose of the portfolio or a portion of the portfolio. The indemnification asset was initially recorded in other assets in the Consolidated Balance Sheets at the time of the TFS Acquisition at a fair value of $30,959,000, measured as the present value of the estimated cash payments expected to be received from Covenant for probable losses on the covered Over-Formula Advance Portfolio. These cash flows were discounted at a rate to reflect the uncertainty of the timing and receipt of the payments from Covenant. The amount ultimately collected for this asset will be dependent upon the performance of the underlying covered portfolio, the passage of time, and Covenant's willingness and ability to make necessary payments. The terms of the Agreement are such that indemnification has no expiration date and the Company will continue to carry the indemnification asset until ultimate resolution of the covered portfolio. The indemnification asset is reviewed quarterly and changes to the asset are recorded as adjustments to other noninterest income, as appropriate, within the Consolidated Statements of Income. The value of the indemnification asset was $4,173,000 and $4,786,000 at September 30, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2021, new adverse developments with the largest of the three Over-Formula Advance clients caused the Company to charge-off the entire Over-Formula Advance amount due from that client. This resulted in a net charge-off of $41,265,000; however, this net charge-off had no impact on credit loss expense for the three months ended March 31, 2021 as the entire amount had been reserved in a prior period. In accordance with the Agreement reached with Covenant, Covenant reimbursed the Company for $35,633,000 of this charge-off by drawing on its secured line of credit, which was reflected on the Company's March 31, 2021 Consolidated Balance Sheet as a current and performing equipment loan held for investment. Given separate developments with the other two Over-Formula Advance clients, the Company reserved an additional $2,844,000 reflected in credit loss expense for the three months ended March 31, 2021. The $2,844,000 increase in required ACL as well as accretion of most of the fair value discount on the indemnification asset held at December 31, 2020 resulted in a $4,654,000 gain on the indemnification asset which was recorded through non-interest income. Since March 31, 2021, Covenant has paid down its secured line of credit with TBK in its entirety and carries no outstanding balance at September 30, 2022. At September 30, 2022, Covenant had remaining availability of $9,361,000 on its TBK line of credit available to cover our undiscounted indemnification balance of $4,393,000. During the nine months ended September 30, 2022, there were no material changes in the underlying credit quality of the remaining two Over-Formula Advance clients. As such, there were no charge-offs related to these balances. One of the remaining Over-Formula Advance clients has made payments totaling $1,291,000 during the nine months ended September 30, 2022, which resulted in a dollar-for-dollar reduction in the required ACL as well as a write-off of a portion of the corresponding indemnification asset. The impact of the payment to net income available to common stockholders for the nine months ended September 30, 2022 was not significant.
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Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | SECURITIES Equity Securities With Readily Determinable Fair Values The Company held equity securities with readily determinable fair values of $4,916,000 and $5,504,000 at September 30, 2022 and December 31, 2021, respectively. The gross realized and unrealized losses recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:
Equity Securities Without Readily Determinable Fair Values The following table summarizes the Company's investments in equity securities without readily determinable fair values:
Equity securities without readily determinable fair values include Federal Home Loan Bank and other restricted stock, which are reported separately in the Company's consolidated balance sheets, and other investments, which are included in other assets in the Company's consolidated balance sheets. The gross realized and unrealized gains (losses) recognized on equity securities without readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:
During the three months ended June 30, 2022, the Company adjusted the fair value of an equity security without readily determinable fair value upwards due to an orderly and observable transaction for an identical investment. For further information on this transaction, see Note 6 – Equity Method Investment. Debt Securities Debt securities have been classified in the financial statements as available for sale or held to maturity. The following table summarizes the amortized cost, fair value, and allowance for credit losses of debt securities and the corresponding amounts of gross unrealized gains and losses of available for sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities:
The amortized cost and estimated fair value of securities at September 30, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Proceeds from sales of debt securities and the associated gross gains and losses as well as net gains and losses from calls of debt securities are as follows:
Debt securities with a carrying amount of approximately $96,198,000 and $72,805,000 at September 30, 2022 and December 31, 2021, respectively, were pledged to secure public deposits, customer repurchase agreements, and for other purposes required or permitted by law. Accrued interest on available for sale securities totaled $1,764,000 and $802,000 at September 30, 2022 and December 31, 2021, respectively, and was included in other assets on the Company's consolidated balance sheets. There was no accrued interest related to debt securities reversed against interest income for the three and nine months ended September 30, 2022 and 2021. The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position:
Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At September 30, 2022, the Company had 140 available for sale debt securities in an unrealized loss position without an allowance for credit losses. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of September 30, 2022, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore no losses have been recognized in the Company’s consolidated statements of income. The following table presents the activity in the allowance for credit losses for held to maturity debt securities:
The Company’s held to maturity securities are investments in the unrated subordinated notes of collateralized loan obligation funds. These securities are the junior-most in securitization capital structures, and are subject to suspension of distributions if the credit of the underlying loan portfolios deteriorates materially. The ACL on held to maturity securities is estimated at each measurement date on a collective basis by major security type. At September 30, 2022 and December 31, 2021, the Company’s held to maturity securities consisted of three investments in the subordinated notes of collateralized loan obligation (“CLO”) funds. Expected credit losses for these securities are estimated using a discounted cash flow methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Ultimately, the realized cash flows on CLO securities such as these will be driven by a variety of factors, including credit performance of the underlying loan portfolio, adjustments to the portfolio by the asset manager, and the timing of a potential call. At September 30, 2022, $5,130,000 of the Company’s held to maturity securities were classified as nonaccrual.
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Loans and Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Credit Losses | LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans Held for Sale The following table presents loans held for sale:
Loans Held for Investment Loans The following table presents the amortized cost and unpaid principal balance of loans held for investment:
The difference between the amortized cost and the unpaid principal is due to (1) premiums and discounts associated with acquired loans totaling $14,263,000 and $11,723,000 at September 30, 2022 and December 31, 2021, respectively, and (2) net deferred origination and factoring fees totaling $4,837,000 and $5,349,000 at September 30, 2022 and December 31, 2021, respectively. Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $16,159,000 and $14,513,000 at September 30, 2022 and December 31, 2021, respectively, and was included in other assets on the Company's consolidated balance sheets. At September 30, 2022 and December 31, 2021, the Company had $249,729,000 and $254,970,000, respectively, of customer reserves associated with factored receivables. These amounts represent customer reserves held to settle any payment disputes or collection shortfalls, may be used to pay customers’ obligations to various third parties as directed by the customer, are periodically released to or withdrawn by customers, and are reported as deposits in the consolidated balance sheets. At September 30, 2022 and December 31, 2021 the balance of the Over-Formula Advance Portfolio included in factored receivables was $8,785,000 and $10,077,000, respectively. These balances were fully reserved as of those respective dates. At September 30, 2022 the Company carried a separate $19,361,000 receivable (the “Misdirected Payments”) payable by the United States Postal Service (“USPS”) arising from accounts factored to the largest Over-Formula Advance Portfolio carrier. This amount is separate from the acquired Over-Formula Advances. The amounts represented by this receivable were paid by the USPS directly to such customer in contravention of notices of assignment delivered to, and previously honored by, the USPS, which amount was then not remitted back to us by such customer as required. The USPS disputes their obligation to make such payment, citing purported deficiencies in the notices delivered to them. We are a party to litigation in the United States Court of Federal Claims against the USPS seeking a ruling that the USPS was obligated to make the payments represented by this receivable directly to us. Based on our legal analysis and discussions with our counsel advising us on this matter, we continue to believe it is probable that we will prevail in such action and that the USPS will have the capacity to make payment on such receivable. Consequently, we have not reserved for such balance as of September 30, 2022. Loans with carrying amounts of $1,416,089,000 and $1,733,917,000 at September 30, 2022 and December 31, 2021, respectively, were pledged to secure Federal Home Loan Bank borrowing capacity, Paycheck Protection Program Liquidity Facility borrowings and Federal Reserve Bank discount window borrowing capacity. Allowance for Credit Losses The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring. The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows:
The increase in required ACL during the three months ended September 30, 2022 is a function of net charge-offs of $2,465,000 and credit loss expense of $3,169,000. The increase in required ACL during the nine months ended September 30, 2022 is a function of net charge-offs of $4,204,000 and credit loss expense of $6,102,000. The Company uses the discounted cash flow (DCF) method to estimate ACL for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit and PPP), and consumer loan pools. For all loan pools utilizing the DCF method, the Company utilizes and forecasts national unemployment as a loss driver. The Company also utilizes and forecasts either one-year percentage change in national retail sales (commercial real estate – non multifamily, commercial general, commercial agriculture, commercial asset-based lending, commercial equipment finance, consumer), one-year percentage change in the national home price index (1-4 family residential and construction, land development, land), or one-year percentage change in national gross domestic product (commercial real estate – multifamily) as a second loss driver depending on the nature of the underlying loan pool and how well that loss driver correlates to expected future losses. Consistent forecasts of the loss drivers are used across the loan segments. The Company also forecasts prepayments speeds for use in the DCF models with higher prepayment speeds resulting in lower required ACL levels and vice versa for shorter prepayment speeds. These assumed prepayment speeds are based upon our historical prepayment speeds by loan type adjusted for the expected impact of the current interest rate environment. Generally, the impact of these assumed prepayment speeds is lesser in magnitude than the aforementioned loss driver assumptions. For all DCF models at September 30, 2022, the Company has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. The Company leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by the Company when developing the forecast metrics. At September 30, 2022 as compared to December 31, 2021, the Company forecasted increasing national unemployment, a steeper decrease in one-year percentage change in national retail sales, a steeper decrease in one-year percentage change in the national home price index, and a steeper decrease in one-year percentage change in national gross domestic product. At September 30, 2022 for national unemployment, the Company projected a low percentage in the first quarter followed by a gradual rise in the following three quarters. For percentage change in national retail sales, the Company projected a sustained level in the first projected quarter followed by a decline to near-zero or negative levels over the last three projected quarters to a level below recent actual periods. For percentage changes in national home price index and national gross domestic product, the Company projected declines over the last three projected quarters to negative levels below recent actual periods. At September 30, 2022, the Company slowed its historical prepayment speeds in response to the rising interest rate environment in the macro economy. The Company uses a loss-rate method to estimate expected credit losses for the farmland, liquid credit, factored receivable, and mortgage warehouse loan pools. For each of these loan segments, the Company applies an expected loss ratio based on internal and peer historical losses adjusted as appropriate for qualitative factors. Qualitative loss factors are based on the Company's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. Loss factors used to calculate the required ACL on pools that use the loss-rate method reflect the forecasted economic conditions described above. For the three months ended September 30, 2022, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period did not have a significant impact on the ACL. Changes in net new required specific reserves increased the required ACL at September 30, 2022. Changes in loan volume and mix during the three months ended September 30, 2022 decreased the ACL during the period. Net charge-offs during the period were $2,465,000. For the three months ended September 30, 2021, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period decreased the required ACL by $177,000. Further, the Company experienced a net reserve release of specific reserves. Changes in loan volume and mix during the three months ended September 30, 2021 did not have a significant impact on the ACL during the period. Non-PCD-related net charge-offs reduced the ACL by $3,718,000 during the three months ended September 30, 2021. For the nine months ended September 30, 2022, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $1,487,000. Changes in net new required specific reserves also increased the required ACL at September 30, 2022. Changes in loan volume and mix during the nine months ended September 30, 2022 decreased the ACL during the period. Net charge-offs during the period were $4,204,000. For the nine months ended September 30, 2021, in addition to the impact of changes to the ACL on acquired PCD Over-Formula Advances previously discussed, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period decreased the required ACL by $10,319,000. Further, the Company experienced a net reserve release of specific reserves on non-PCD loans. Changes in loan volume and mix during the nine months ended September 30, 2021 also decreased the ACL during the period. Non-PCD-related charge-offs reduced the ACL by $4,067,000 during the nine months ended September 30, 2021. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:
At September 30, 2022 the balance of the Over-Formula Advance Portfolio included in factored receivables was $8,785,000 and was fully reserved. At September 30, 2022 the balance of Misdirected Payments included in factored receivables was $19,361,000 and carried no ACL allocation.
At December 31, 2021 the balance of the Over-Formula Advance Portfolio included in factored receivables was $10,077,000 and carried an ACL allocation of $10,077,000. At December 31, 2021 the balance of Misdirected Payments included in factored receivables was $19,361,000 and carried no ACL allocation. Past Due and Nonaccrual Loans The following tables present an aging of contractually past due loans:
At September 30, 2022 and December 31, 2021, total past due Over-Formula Advances recorded in factored receivables was $8,785,000 and $10,077,000, respectively, all of which was considered past due 90 days or more. Aging of the Over-Formula Advances is based upon the service month on which the advances were made by TFS prior to acquisition. At September 30, 2022 and December 31, 2021, the Misdirected Payments totaled $19,361,000, all of which was considered past due 90 days or more. Given the nature of factored receivables, these assets are disclosed as past due 90 days or more still accruing; however, the Company is not recognizing income on the assets. Historically, any income recognized on factored receivables that are past due 90 days or more has not been material. The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses:
The following table presents accrued interest on nonaccrual loans reversed through interest income:
There was no interest earned on nonaccrual loans during the three and nine months ended September 30, 2022 and 2021. The following table presents information regarding nonperforming loans:
(1)Includes troubled debt restructurings of $2,034,000 and $3,912,000 at September 30, 2022 and December 31, 2021, respectively. (2)Other nonperforming factored receivables represent the portion of the Over-Formula Advance Portfolio that is not covered by Covenant's indemnification as well as other nonperforming factored receivables less than 90 days past due. This amount is also considered Classified from a risk rating perspective. Credit Quality Information The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including: current collateral and financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk on a regular basis. Large groups of smaller balance homogeneous loans, such as consumer loans, are analyzed primarily based on payment status. The Company uses the following definitions for risk ratings: Pass – Pass rated loans have low to average risk and are not otherwise classified. Classified – Classified loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Certain classified loans have the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. As of September 30, 2022 and December 31, 2021, based on the most recent analysis performed, the risk category of loans is as follows:
Troubled Debt Restructurings and Loan Modifications The Company had troubled debt restructurings with an amortized cost of $2,611,000 and $4,677,000 as of September 30, 2022 and December 31, 2021, respectively. The Company had allocated $1,104,000 and $1,068,000 of allowance for those loans at September 30, 2022 and December 31, 2021, respectively, and had not committed to lend additional amounts. The following table presents the pre- and post-modification recorded investment of loans modified as troubled debt restructurings. The Company did not grant principal reductions on any restructured loans.
There were no loans modified as troubled debt restructurings during the three months ended September 30, 2021. During the nine months ended September 30, 2022, the Company had two loans modified as troubled debt restructurings with a recorded investment of $546,000 for which there were payment defaults within twelve months following the modification. During the nine months ended September 30, 2021, the Company had three loans modified as troubled debt restructurings with a recorded investment of $1,681,000 for which there were payment defaults within twelve months following the modification. Default is determined at 90 or more days past due, upon charge-off, or upon foreclosure. The following table summarizes the balance of loans modified for borrowers impacted by the COVID-19 pandemic.
These modifications primarily consisted of payment deferrals to assist customers. As these modifications related to the COVID-19 pandemic and qualify under the provisions of either Section 4013 of the CARES act or Interagency Guidance, they are not considered troubled debt restructurings. There were no loans in deferral at September 30, 2022. The following table summarized the amortized cost of loans with payments in deferral and the accrued interest related to the loans with payments in deferral at December 31, 2021:
Residential Real Estate Loans In Process of Foreclosure At September 30, 2022 and December 31, 2021, the Company had $129,000 and $301,000, respectively, in 1-4 family residential real estate loans for which formal foreclosure proceedings were in process.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets consist of the following:
The changes in goodwill and intangible assets during the three and nine months ended September 30, 2022 and 2021 are as follows:
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Equity Method Investment |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investment | EQUITY METHOD INVESTMENT On October 17, 2019, the Company made a minority equity investment of $8,000,000 in Warehouse Solutions Inc. (“WSI”), purchasing 8% of the common stock of WSI and receiving warrants to purchase an additional 10% of the common stock of WSI upon exercise of the warrants at a later date. WSI provides technology solutions to help reduce supply chain costs for a global client base across multiple industries. Although the Company held less than 20% of the voting stock of WSI, the investment in common stock was initially accounted for using the equity method as the Company’s representation on WSI’s board of directors, which was disproportionately larger in size than the common stock investment held, demonstrated that it had significant influence over the investee. On June 10, 2022, the Company entered into two separate agreements with WSI. First, the Company entered into an Affiliate Agreement. The Affiliate Agreement canceled the Company’s outstanding warrants and modified the structure of the existing operating agreement to be consistent with TriumphPay operating as an open loop payments network. By modifying the operating agreement, the Company’s Payments segment operations now have greater ability to operate in the freight shipper audit space. As a result of the Affiliate Agreement, the Company recognized a total loss on impairment of the warrants of $3,224,000, which represented the full book balance of the warrants on the date the Affiliate Agreement was executed. The impairment loss was included in other noninterest income on the Company's consolidated statements of income during the three months ended June 30, 2022. Separately, the Company also entered into an Amended and Restated Investor Rights Agreement (the “Investor Rights Agreement”). The Investor Rights Agreement eliminated the Company’s representation on WSI’s board of directors making the Company a completely passive investor. The Investor Rights Agreement also provided for the Company’s purchase of an additional 10% of WSI’s common stock for $23,000,000 raising the Company’s ownership of WSI’s common stock to 18%. As a passive investor, the Company no longer holds significant influence over the investee and the investment in WSI’s common stock no longer qualifies for equity method accounting. The investment in WSI’s common stock is now accounted for as an equity investment without a readily determinable fair value measured under the measurement alternative. The measurement alternative requires the Company to remeasure its investment in the common stock of WSI only upon the execution of an orderly and observable transaction in an identical or similar instrument. The Company's additional investment in WSI under the Investor Rights Agreement resulted in the Company discontinuing the equity method of accounting and qualified as an orderly and observable transaction for an identical investment in WSI, therefore the fair value of the Company's original 8% common stock investment was required to be adjusted from $4,925,000 at March 31, 2022 to $15,088,000, resulting in a gain of $10,163,000 that was recorded in other noninterest income on the Company's consolidated statements of income during the three months ended June 30, 2022. The following table presents the Company’s investment in WSI:
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s interest bearing deposits. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Beginning in June 2020, such derivatives were used to hedge the variable cash flows associated with interest bearing deposits. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminated, or treatment of the derivative as a hedge is no longer appropriate or intended. During the three months ended March 31, 2022, the Company terminated its single derivative with a notional value totaling $200,000,000, resulting in a termination value of $9,316,000. During the nine months ended September 30, 2022, the Company reclassified $465,000 into earnings through interest expense in the consolidated statements of income. On May 4, 2022, the Company terminated the hedged funding, incurring a termination fee of $732,000, which was recognized through interest expense in the consolidated statements of income, and reclassified the remaining $8,851,000 unrealized gain on the terminated derivative into earnings through other noninterest income in the consolidated statements of income. The following table presents the pre-tax impact of the terminated cash flow hedge on AOCI:
The Company did not have any derivative financial instruments at September 30, 2022. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2021:
The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income, net of tax:
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Variable Interest Entities |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | VARIABLE INTEREST ENTITIES Collateralized Loan Obligation Funds – Closed The Company holds investments in the subordinated notes of the following closed Collateralized Loan Obligation (“CLO”) funds:
The net carrying amounts of the Company’s investments in the subordinated notes of the CLO funds, which represent the Company’s maximum exposure to loss as a result of its involvement with the CLO funds, totaled $4,149,000 and $4,947,000 at September 30, 2022 and December 31, 2021, respectively, and are classified as held to maturity securities within the Company’s consolidated balance sheets. The Company performed a consolidation analysis to confirm whether the Company was required to consolidate the assets, liabilities, equity or operations of the closed CLO funds in its financial statements. The Company concluded that the closed CLO funds were variable interest entities and that the Company holds variable interests in the entities in the form of its investments in the subordinated notes of entities. However, the Company also concluded that the Company does not have the power to direct the activities that most significantly impact the entities’ economic performance. As a result, the Company was not the primary beneficiary and therefore was not required to consolidate the assets, liabilities, equity, or operations of the closed CLO funds in the Company’s financial statements.
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Legal Contingencies |
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Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | LEGAL CONTINGENCIESVarious legal claims have arisen from time to time in the normal course of business which, in the opinion of management as of September 30, 2022, will have no material effect on the Company’s consolidated financial statements. |
Off-Balance Sheet Loan Commitments |
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Off-Balance Sheet Loan Commitments | OFF-BALANCE SHEET LOAN COMMITMENTS From time to time, the Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments. The contractual amounts of financial instruments with off-balance sheet risk were as follows:
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed above do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if considered necessary by the Company, upon extension of credit, is based on management’s credit evaluation of the customer. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer, the Company has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. The credit risk to the Company in issuing letters of credit is essentially the same as that involved in extending loan facilities to its customers. Commitments to purchase loans represent loans purchased by the Company that have not yet settled. Mortgage warehouse commitments are unconditionally cancellable and represent the unused capacity on mortgage warehouse facilities the Company has approved. The Company reserves the right to refuse to buy any mortgage loans offered for sale by a customer, for any reason, at the Company’s sole and absolute discretion. The Company records an allowance for credit losses on off-balance sheet credit exposures through a charge to credit loss expense on the Company’s consolidated statements of income. At September 30, 2022 and December 31, 2021, the allowance for credit losses on off-balance sheet credit exposures totaled $3,680,000 and $4,082,000, respectively, and was included in other liabilities on the Company’s consolidated balance sheets. The following table presents credit loss expense for off balance sheet credit exposures:
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Fair Value Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | FAIR VALUE DISCLOSURES Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The methods of determining the fair value of assets and liabilities presented in this note are consistent with the methodologies disclosed in Note 17 of the Company’s 2021 Form 10-K. Assets and liabilities measured at fair value on a recurring basis are summarized in the table below.
There were no transfers between levels during 2022 or 2021. Indemnification Asset The fair value of the indemnification asset is calculated as the present value of the estimated cash payments expected to be received from Covenant for probable losses on the covered Over-Formula Advance Portfolio. The cash flows are discounted at a rate to reflect the uncertainty of the timing and receipt of the payments from Covenant. The indemnification asset is reviewed quarterly and changes to the asset are recorded as adjustments to other noninterest income or expense, as appropriate, within the Consolidated Statements of Income. The indemnification asset fair value is considered a Level 3 classification. At September 30, 2022 and December 31, 2021, the estimated cash payments expected to be received from Covenant for probable losses on the covered Over-Formula Advance Portfolio were approximately $4,393,000 and $5,038,000, respectively, and a discount rate of 5.0% and 5.0%, respectively, was applied to calculate the present value of the indemnification asset. A reconciliation of the opening balance to the closing balance of the fair value of the indemnification asset is as follows:
Revenue Share Asset On June 30, 2022 and September 6, 2022, the Company entered into and closed two separate agreements to sell two separate portfolios of factored receivables. The June 30, 2022 agreement contains revenue share provisions that entitles the Company to an amount equal to fifteen percent of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. The September 6, 2022 agreement contains revenue share provisions that entitles the Company to an amount ranging from fifteen to twenty percent, depending on the client, of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. The fair value of the revenue share assets is calculated each reporting period, and changes in the fair value of the revenue share assets are recorded in noninterest income in the consolidated statements of income. The revenue share asset fair value is considered a Level 3 classification. At September 30, 2022, the estimated cash payments expected to be received from the purchaser for the Company's share of future gross monthly revenue as $8,653,000 and a discount rate of 10.0% was applied to calculate the present value of the revenue share asset. A reconciliation of the opening balance to the closing balance of the fair value of the revenue share asset is as follows:
Return of Premium Liability On June 23, 2022, the Company made the decision to sell and closed on the sale of a portfolio of equipment loans for cash consideration. The associated agreement contains a provision that in the event that a sold loan is prepaid in full prior to the due date of the final scheduled contractual payment, the Company will return a pro-rata portion of the premium calculated as of the date of such prepayment in full. The fair value of the return of premium liability is calculated each reporting period, and changes in the fair value of the return of premium liability are recorded in noninterest income in the consolidated statements of income. The return of premium liability is considered a Level 3 classification. At September 30, 2022, the fair value of the estimated premium expected to be returned to the purchaser for sold loans prepaid in full was calculated as the difference between the discounted cash flows of each sold loan assuming no prepayments and the discounted cash flows of each sold loan assuming an 11.0% prepayment speed; consistent with management's expected prepayment speed. A reconciliation of the opening balance to the closing balance of the fair value of the return of premium liability is as follows:
Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021.
(1)Represents the fair value of OREO that was adjusted during the year to date period and subsequent to its initial classification as OREO. Collateral Dependent Loans Specific Allocation of ACL: A loan is considered to be a collateral dependent loan when, based on current information and events, the Company expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Company has determined that the borrower is experiencing financial difficulty as of the measurement date. The ACL is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the underlying fair value of the loan’s collateral. For real estate loans, fair value of the loan’s collateral is determined by third party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 8% of the appraised value. For non-real estate loans, fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. OREO: OREO is primarily comprised of real estate acquired in partial or full satisfaction of loans. OREO is recorded at its estimated fair value less estimated selling and closing costs at the date of transfer, with any excess of the related loan balance over the fair value less expected selling costs charged to the ACL. Subsequent changes in fair value are reported as adjustments to the carrying amount and are recorded against earnings. The Company outsources the valuation of OREO with material balances to third party appraisers. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 8% of the appraised value. The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at September 30, 2022 and December 31, 2021 were as follows:
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Regulatory Matters | REGULATORY MATTERS The Company (on a consolidated basis) and TBK Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s or TBK Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and TBK Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and TBK Bank to maintain minimum amounts and ratios (set forth in the table below) of total, common equity Tier 1, and Tier 1 capital to risk weighted assets, and of Tier 1 capital to average assets. Management believes, as of September 30, 2022 and December 31, 2021, the Company and TBK Bank meet all capital adequacy requirements to which they are subject. As of September 30, 2022 and December 31, 2021, TBK Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” TBK Bank must maintain minimum total risk based, common equity Tier 1 risk based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since September 30, 2022 that management believes have changed TBK Bank’s category. The actual capital amounts and ratios for the Company and TBK Bank are presented in the following table.
As permitted by the interim final rule issued on March 27, 2020 by the federal banking regulatory agencies, the Company elected the option to delay the estimated impact on regulatory capital of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which was effective January 1, 2020. The initial impact of adoption of ASU 2016-13 as well as 25% of the quarterly increases in the allowance for credit losses subsequent to adoption of ASU 2016-13 (collectively the “transition adjustments”) was delayed for two years. After two years, the cumulative amount of the transition adjustments became fixed and will be phased out of the regulatory capital calculations evenly over a three year period, with 75% recognized in year three, 50% recognized in year four, and 25% recognized in year five. After five years, the temporary regulatory capital benefits will be fully reversed. Dividends paid by TBK Bank are limited to, without prior regulatory approval, current year earnings and earnings less dividends paid during the preceding two years. The capital conservation buffer set forth by the Basel III regulatory capital framework was 2.5% at September 30, 2022 and December 31, 2021. The capital conservation buffer is designed to absorb losses during periods of economic stress and requires increased capital levels for the purpose of capital distributions and other payments. Failure to meet the full amount of the buffer will result in restrictions on the Company’s ability to make capital distributions, including dividend payments and stock repurchases, and to pay discretionary bonuses to executive officers. At September 30, 2022 and December 31, 2021, the Company’s and TBK Bank’s risk based capital exceeded the required capital conservation buffer.
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Stockholders' Equity |
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Stockholders' Equity | STOCKHOLDERS' EQUITY The following summarizes the capital structure of Triumph Bancorp, Inc. Preferred Stock Series C
Common Stock
Stock Repurchase Programs On February 7, 2022, the Company announced that its board of directors had authorized the Company to repurchase up to $50,000,000 of its outstanding common stock. This program was completed during the three months ended June 30, 2022, and on May 23, 2022, the Company announced that its board of directors had authorized the Company to repurchase up to an additional $75,000,000 of its outstanding common stock in open market transactions or through privately negotiated transactions at the Company’s discretion. The amount, timing and nature of any share repurchases will be based on a variety of factors, including the trading price of the Company’s common stock, applicable securities laws restrictions, regulatory limitations and market and economic factors. The repurchase program is authorized for a period of up to one year and does not require the Company to repurchase any specific number of shares. The repurchase program may be modified, suspended or discontinued at any time, at the Company’s discretion. The following repurchases were made under the February 7, 2022 program. No shares have been purchased under the May 23, 2022 program.
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Stock Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | STOCK BASED COMPENSATION Stock based compensation expense that has been charged against income was $4,296,000 and $4,445,000 for the three months ended September 30, 2022 and 2021, respectively, and $17,128,000 and $9,181,000 for the nine months ended September 30, 2022 and 2021, respectively. 2014 Omnibus Incentive Plan The Company’s 2014 Omnibus Incentive Plan (“Omnibus Incentive Plan”) provides for the grant of nonqualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other awards that may be settled in, or based upon the value of, the Company’s common stock. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 2,450,000 shares. Restricted Stock Awards A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2022 were as follows:
RSAs granted to employees under the Omnibus Incentive Plan typically vest immediately or over four years. Compensation expense for the RSAs will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. As of September 30, 2022, there was $7,552,000 of unrecognized compensation cost related to the nonvested RSAs. The cost is expected to be recognized over a remaining period of 2.52 years. Restricted Stock Units A summary of changes in the Company’s nonvested Restricted Stock Units (“RSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2022 were as follows:
RSUs granted to employees under the Omnibus Incentive Plan typically vest over to five years. Compensation expense for the RSUs will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. As of September 30, 2022, there was $7,688,000 of unrecognized compensation cost related to the nonvested RSUs. The cost is expected to be recognized over a remaining period of 3.19 years. Market Based Performance Stock Units A summary of changes in the Company’s nonvested Market Based Performance Stock Units (“Market Based PSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2022 were as follows:
Market Based PSUs granted to employees under the Omnibus Incentive Plan vest after to five years. The number of shares issued upon vesting will range from 0% to 175% of the Market Based PSUs granted based on the Company’s relative total shareholder return (“TSR”) as compared to the TSR of a specified group of peer banks. Compensation expense for the Market Based PSUs will be recognized over the vesting period of the awards based on the fair value of the award at the grant date. The fair value of Market Based PSUs granted is estimated using a Monte Carlo simulation. Expected volatilities were determined based on the historical volatilities of the Company and the specified peer group. The risk-free interest rate for the performance period was derived from the Treasury constant maturities yield curve on the valuation dates. The fair value of the Market Based PSUs granted was determined using the following weighted-average assumptions:
As of September 30, 2022, there was $3,343,000 of unrecognized compensation cost related to the nonvested Market Based PSUs. The cost is expected to be recognized over a remaining period of 2.21 years. Performance Based Performance Stock Units A summary of changes in the Company’s nonvested Performance Based Performance Stock Units (“Performance Based PSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2022 were as follows:
Performance Based PSUs granted to employees under the Omnibus Incentive Plan vest after a three year performance period. The number of shares issued upon vesting will range from 0% to 200% of the shares granted based on the Company’s cumulative diluted earnings per share over the performance period. Compensation expense for the Performance Based PSUs will be estimated each period based on the fair value of the stock at the grant date and the most probable outcome of the performance condition, adjusted for the passage of time within the vesting period of the awards. During the three and nine months ended September 30, 2022, the Company recognized $298,000 and $5,433,000, respectively, of stock based compensation expense related to Performance Based PSUs. As of September 30, 2022, the maximum unrecognized compensation cost related to the nonvested Performance Based PSUs was $7,424,000, and the remaining performance period over which the cost could be recognized was 0.25 years. No compensation cost was recorded during the three and nine months ended September 30, 2021. Stock Options A summary of the changes in the Company’s stock options under the Omnibus Incentive Plan for the nine months ended September 30, 2022 were as follows:
Information related to the stock options for the nine months ended September 30, 2022 and 2021 was as follows:
Stock options awarded to employees under the Omnibus Incentive Plan are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant, vest over four years, and have ten year contractual terms. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. Beginning in 2022, expected volatilities are determined based on the Company’s historical volatility. Prior to 2022, expected volatilities were determined based on a blend of the Company’s historical volatility and historical volatilities of a peer group of companies with a similar size, industry, stage of life cycle, and capital structure. The expected term of the options granted is determined based on the SEC simplified method, which calculates the expected term as the mid-point between the weighted average time to vesting and the contractual term. The risk-free interest rate for the expected term of the options is derived from the Treasury constant maturity yield curve on the valuation date. The fair value of the stock options granted was determined using the following weighted-average assumptions:
As of September 30, 2022, there was $1,059,000 of unrecognized compensation cost related to nonvested stock options granted under the Omnibus Incentive Plan. The cost is expected to be recognized over a remaining period of 3.28 years. Employee Stock Purchase Plan On April 1, 2019, the Company’s Board of Directors adopted the Triumph Bancorp, Inc. Employee Stock Purchase Plan (“ESPP”) and reserved 2,500,000 shares of common stock for issuance. The ESPP enables eligible employees to purchase the Company’s common stock at a price per share equal to 85% of the lower of the fair market value of the common stock at the beginning or end of each six month offering period. The first offering period commenced on February 1, 2021. During the nine months ended September 30, 2022, 24,516 shares were issued under the plan. No shares were issued during the nine months ended September 30, 2021.
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Earnings Per Share |
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Earnings Per Share | EARNINGS PER SHARE The factors used in the earnings per share computation follow:
Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows:
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Revenue From Contracts With Customers |
9 Months Ended |
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Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The Company presents disaggregated revenue from contracts with customers in the consolidated statements of income. Descriptions of the Company's significant revenue-generating activities within the scope of Topic 606, which are included in non-interest income in the Company's consolidated statements of income, are as follows: •Service charges on deposits. Service charges on deposits primarily consists of fees from the Company's deposit customers for account maintenance, account analysis, and overdraft services. Account maintenance fees and analysis fees are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. •Card income. Card income primarily consists of interchange fees. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized when the transaction processing services are provided to the cardholder. •Net OREO gains (losses) and valuation adjustments. The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. •Fee income. Fee income for the Banking and Factoring segments primarily consists of transaction-based fees, including wire transfer fees, ACH and check fees, early termination fees, and other fees, earned from the Company's banking and factoring customers. Transaction based fees are recognized at the time the transaction is executed as that is the point in time the Company satisfies its performance obligations. Fee income for the Payments segment primarily consists of TriumphPay payment and audit fees. These fees totaled $3,545,000 and $3,095,000 for the three months ended September 30, 2022 and 2021, respectively, and $10,156,000 and $4,251,000 for the nine months ended September 30, 2022 and 2021, respectively. These fees are transaction based and are recognized at the time the transaction is executed as that is the point in time that the Company satisfies its performance obligations. •Insurance commissions. Insurance commissions are earned for brokering insurance policies. The Company's primary performance obligations for insurance commissions are satisfied and revenue is recognized when the brokered insurance policies are executed.
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Business Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | BUSINESS SEGMENT INFORMATION The following table presents the Company’s operating segments. The accounting policies of the reportable segments substantially the same as those described in the "Summary of Significant Accounting Policies" in Note 1 of the Company's 2021 Form 10-K. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring and Payments segments based on Federal Home Loan Bank advance rates. Credit loss expense is allocated based on the segment’s allowance for credit losses determination. Noninterest income and expense directly attributable to a segment are assigned to it. The majority of salaries and benefits expense for the Company's executive leadership team as well as certain other selling, general, and administrative shared services costs are allocated to the Banking segment. Taxes are paid on a consolidated basis and are not allocated for segment purposes. The Factoring segment includes only factoring originated by TBC.
Total assets and gross loans below include intersegment loans, which eliminate in consolidation.
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Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Triumph Bancorp, Inc. (collectively with its subsidiaries, “Triumph”, or the “Company” as applicable) is a financial holding company headquartered in Dallas, Texas offering a diversified line of payments, factoring and banking services. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Triumph CRA Holdings, LLC (“TCRA”), TBK Bank, SSB (“TBK Bank”), TBK Bank’s wholly owned subsidiary Advance Business Capital LLC, which currently operates under the d/b/a of Triumph Business Capital (“TBC”), and TBK Bank’s wholly owned subsidiary Triumph Insurance Group, Inc. (“TIG”). TriumphPay operates as a division of TBK Bank, SSB.
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Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary for a fair presentation. Transactions between the subsidiaries have been eliminated. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.
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Operating Segments | Operating Segments The Company’s reportable segments are comprised of strategic business units primarily based upon industry categories and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing. Segment determination also considered organizational structure and is consistent with the presentation of financial information to the chief operating decision maker to evaluate segment performance, develop strategy, and allocate resources. The Company's chief operating decision maker is the Chief Executive Officer of Triumph Bancorp, Inc. Management has determined that the Company has four reportable segments consisting of Banking, Factoring, Payments, and Corporate. The Banking segment includes the operations of TBK Bank. The Banking segment derives its revenue principally from investments in interest-earning assets as well as noninterest income typical for the banking industry. The Factoring segment includes the operations of TBC with revenue derived from factoring services. The Payments segment includes the operations of the TBK Bank's TriumphPay division, which is the payments network for presentment, audit, and payment of over-the-road trucking invoices. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of both invoices where we offer a carrier a quickpay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and from offering freight brokers the ability to settle their invoices with us on an extended term following our payment to their carriers as an additional liquidity option for such freight brokers. The Corporate segment includes holding company financing and investment activities and management and administrative expenses to support the overall operations of the Company.
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Newly Issued, But Not Yet Effective Accounting Standards | Newly Issued, But Not Yet Effective Accounting Standards In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, "Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings ("TDRs") in ASC 310-40, "Receivables - Troubled Debt Restructurings by Creditors" for entities that have adopted the current expected credit loss ("CECL") model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13"). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, "Financial Instruments—Credit Losses—Measured at Amortized Cost". ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the effect that ASU 2022-02 will have on its consolidated financial statements and related disclosures.
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Acquisitions and Divestitures (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Carrying Amount of Assets in Disposal Group and Gain on Sale | A summary of the carrying amount of the assets sold and the gain on sale is as follows:
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows:
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Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gross Realized and Unrealized Losses Recognized on Equity Securities | The gross realized and unrealized losses recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:
The gross realized and unrealized gains (losses) recognized on equity securities without readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:
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Equity Securities without Readily Determinable Fair Value | The following table summarizes the Company's investments in equity securities without readily determinable fair values:
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Schedule of Amortized Cost of Securities and Their Estimated Fair Values | The following table summarizes the amortized cost, fair value, and allowance for credit losses of debt securities and the corresponding amounts of gross unrealized gains and losses of available for sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities:
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Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of securities at September 30, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Schedule of Proceeds from Sales of Debt Securities and the Associated Gross Gains and Losses as well as Net Gains and Losses from Calls of Debt Securities | Proceeds from sales of debt securities and the associated gross gains and losses as well as net gains and losses from calls of debt securities are as follows:
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Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position:
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Summary of Activity in Allowance for Credit Losses for Held To Maturity Debt Securities | The following table presents the activity in the allowance for credit losses for held to maturity debt securities:
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Loans and Allowance for Credit Losses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans Held for Sale | The following table presents loans held for sale:
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Schedule of Amortized Cost and Unpaid Principal | The following table presents the amortized cost and unpaid principal balance of loans held for investment:
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Summary of Allowance for Loan and Lease Losses | The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows:
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Individual And Collective Allowance For Credit Losses On Financing Receivables And Loan Balances | The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:
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Summary of Contractually Past Due and Nonaccrual Loans | The following tables present an aging of contractually past due loans:
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Summary of Amortized Cost Basis of Loans on Nonaccrual Status | The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses:
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Schedule of Accrued Interest on Non Accrual Loans Reversed Through Interest Income | The following table presents accrued interest on nonaccrual loans reversed through interest income:
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Schedule of Nonperforming Loans | The following table presents information regarding nonperforming loans:
(1)Includes troubled debt restructurings of $2,034,000 and $3,912,000 at September 30, 2022 and December 31, 2021, respectively. (2)Other nonperforming factored receivables represent the portion of the Over-Formula Advance Portfolio that is not covered by Covenant's indemnification as well as other nonperforming factored receivables less than 90 days past due. This amount is also considered Classified from a risk rating perspective.
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Summary of Risk Category of Loans | As of September 30, 2022 and December 31, 2021, based on the most recent analysis performed, the risk category of loans is as follows:
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Schedule of Loans Modified as Troubled Debt Restructurings | The following table presents the pre- and post-modification recorded investment of loans modified as troubled debt restructurings. The Company did not grant principal reductions on any restructured loans.
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Balance of Loans Modified Due to COVID-19 | The following table summarizes the balance of loans modified for borrowers impacted by the COVID-19 pandemic.
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Summary of Amortized Cost of Loans Currently in Deferral | The following table summarized the amortized cost of loans with payments in deferral and the accrued interest related to the loans with payments in deferral at December 31, 2021:
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Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill | Goodwill and intangible assets consist of the following:
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Schedule of Changes in Goodwill and Intangible Assets | The changes in goodwill and intangible assets during the three and nine months ended September 30, 2022 and 2021 are as follows:
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Equity Method Investment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | The following table presents the Company’s investment in WSI:
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Derivative Financial Instruments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Pre-Tax Impact of Terminated Cash Flow Hedge on AOCI | The following table presents the pre-tax impact of the terminated cash flow hedge on AOCI:
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Schedule of Fair Value of Derivative Financial Instruments Classification on Balance Sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2021:
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Schedule of Pre-Tax Impact of Terminated Cash Flow Hedge on AOCI | The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income, net of tax:
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Variable Interest Entities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The Company holds investments in the subordinated notes of the following closed Collateralized Loan Obligation (“CLO”) funds:
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Off-Balance Sheet Loan Commitments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Instruments with Off-Balance Sheet Risk | The contractual amounts of financial instruments with off-balance sheet risk were as follows:
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Securities Borrowed, Allowance for Credit Loss | The following table presents credit loss expense for off balance sheet credit exposures:
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Fair Value Disclosures (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized in the table below.
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Reconciliation of Opening Balance to Closing Balance of Fair Value of Contingent Consideration | A reconciliation of the opening balance to the closing balance of the fair value of the indemnification asset is as follows:
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Fair Value of Assets Measured on Non-recurring Basis | Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021.
(1)Represents the fair value of OREO that was adjusted during the year to date period and subsequent to its initial classification as OREO.
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Estimated Fair Value of Company's Financial Assets and Financial Liabilities | The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at September 30, 2022 and December 31, 2021 were as follows:
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Regulatory Matters (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The actual capital amounts and ratios for the Company and TBK Bank are presented in the following table.
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Stockholders' Equity (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Capital Structure | The following summarizes the capital structure of Triumph Bancorp, Inc. Preferred Stock Series C
Common Stock
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Class of Treasury Stock | The following repurchases were made under the February 7, 2022 program. No shares have been purchased under the May 23, 2022 program.
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Stock Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Company's Nonvested Restricted Stock Awards | A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2022 were as follows:
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Summary of Changes in Company's Nonvested Restricted Stock Units | A summary of changes in the Company’s nonvested Restricted Stock Units (“RSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2022 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Company's Nonvested Performance Stock Units | A summary of changes in the Company’s nonvested Market Based Performance Stock Units (“Market Based PSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2022 were as follows:
A summary of changes in the Company’s nonvested Performance Based Performance Stock Units (“Performance Based PSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2022 were as follows:
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Share Based Compensation Performance Stock Units Valuation Assumptions Table | The fair value of the Market Based PSUs granted was determined using the following weighted-average assumptions:
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Summary of Changes in Company's Stock Options | A summary of the changes in the Company’s stock options under the Omnibus Incentive Plan for the nine months ended September 30, 2022 were as follows:
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Schedule of Information Related to Stock Options | Information related to the stock options for the nine months ended September 30, 2022 and 2021 was as follows:
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Fair Value of Stock Options Granted Weighted-Average Assumptions | The fair value of the stock options granted was determined using the following weighted-average assumptions:
|
Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Factors Used in Computation of Earnings Per Share | The factors used in the earnings per share computation follow:
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Schedule of Shares not Considered in Computing Diluted Earnings per Common Share | Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows:
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Business Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | The following table presents the Company’s operating segments. The accounting policies of the reportable segments substantially the same as those described in the "Summary of Significant Accounting Policies" in Note 1 of the Company's 2021 Form 10-K. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring and Payments segments based on Federal Home Loan Bank advance rates. Credit loss expense is allocated based on the segment’s allowance for credit losses determination. Noninterest income and expense directly attributable to a segment are assigned to it. The majority of salaries and benefits expense for the Company's executive leadership team as well as certain other selling, general, and administrative shared services costs are allocated to the Banking segment. Taxes are paid on a consolidated basis and are not allocated for segment purposes. The Factoring segment includes only factoring originated by TBC.
Total assets and gross loans below include intersegment loans, which eliminate in consolidation.
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Summary of Significant Accounting Policies - Narrative (Details) |
9 Months Ended |
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Sep. 30, 2022
segment
| |
Accounting Policies [Abstract] | |
Number of reportable segments | 4 |
Acquisitions and Divestitures - Summary of Assets and Liabilities in Disposal Group, Equipment Loan Sale (Details) - Equipment Loans Disposal Group - Disposal Group, Disposed of by Sale, Not Discontinued Operations $ in Thousands |
Jun. 23, 2022
USD ($)
|
---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Equipment loans | $ 191,167 |
Accrued interest receivable | 1,587 |
Assets sold | 192,754 |
Cash consideration | 197,454 |
Return of premium liability | (708) |
Total consideration | 196,746 |
Transaction costs | 73 |
Gain on sale, net of transaction costs | $ 3,919 |
Acquisitions and Divestitures - Summary of Assets and Liabilities in Disposal Group, Factored Receivables (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Factored Receivable Disposal Group - USD ($) $ in Thousands |
Sep. 30, 2022 |
Sep. 06, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||
Assets sold | $ 88,036 | $ 20,148 | $ 67,888 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |||
Customer reserve noninterest bearing deposits | 10,831 | 1,149 | 9,682 |
Liabilities held for sale | 10,831 | 1,149 | 9,682 |
Net assets sold | 77,205 | 18,999 | 58,206 |
Cash consideration | 85,346 | 19,054 | 66,292 |
Revenue share asset | 6,237 | 1,027 | 5,210 |
Total consideration | 91,583 | 20,081 | 71,502 |
Transaction costs | 131 | 49 | 82 |
Gain on sale, net of transaction costs | 14,247 | 1,033 | 13,214 |
Factored receivables | |||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||
Factored receivables | 88,019 | 20,131 | 67,888 |
Accrued interest and fee income | $ 17 | $ 17 | $ 0 |
Securities - Additional Information (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2022
USD ($)
security
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
investment
security
|
Sep. 30, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
investment
|
|
Debt and Equity Securities, FV-NI [Line Items] | |||||
Securities - equity investments with readily determinable fair values | $ 4,916,000 | $ 4,916,000 | $ 5,504,000 | ||
Accrued interest | 1,764,000 | 1,764,000 | $ 802,000 | ||
Debt securities, available-for-sale, accrued interest writeoff | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of securities in an unrealized loss position | security | 140 | 140 | |||
Number of investments | investment | 3 | 3 | |||
Held-to-maturity securities classified as nonaccrual | $ 5,130,000 | $ 5,130,000 | |||
Asset Pledged as Collateral | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Debt securities | 96,198,000 | 96,198,000 | $ 72,805,000 | ||
Mutual fund | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Securities - equity investments with readily determinable fair values | $ 4,916,000 | $ 4,916,000 | $ 5,504,000 |
Securities - Schedule of Gross Realized and Unrealized Gains (Losses) Recognized on Equity Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized gains (losses) on equity securities held at the reporting date | $ (134) | $ (231) | $ (588) | $ (203) |
Realized gains (losses) on equity securities sold during the period | 0 | 0 | 0 | 0 |
Gross realized and unrealized gains (losses) recognized on equity securities | $ (134) | $ (231) | $ (588) | $ (203) |
Securities - Equity Securities Without Readily Determinable Fair Values (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Equity Securities without readily determinable fair value, at cost | $ 38,846 | $ 14,671 |
Upward adjustments based on observable price changes, cumulative | 10,163 | 0 |
Equity Securities without readily determinable fair value, carrying value | $ 49,009 | $ 14,671 |
Securities - Schedule of Gross Realized and Unrealized Gains (Losses) Recognized on Equity Securities Without Readily Determinable Fair Values (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized gains (losses) on equity securities still held at the reporting date | $ 0 | $ 0 | $ 10,163 | $ 0 |
Realized gains (losses) on equity securities sold during the period | 0 | 0 | 0 | 0 |
Equity securities without readily determinable fair value, upward price adjustment, annual amount | $ 0 | $ 0 | $ 10,163 | $ 0 |
Securities - Schedule of Proceeds from Sales of Debt Securities and the Associated Gross Gains and Losses as well as Net Gains and Losses from Calls of Debt Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 0 | $ 0 | $ 40,163 | $ 0 |
Gross gains | 0 | 0 | 2,512 | 0 |
Gross losses | 0 | 0 | 0 | 0 |
Net gains and losses from calls of securities | $ 0 | $ 4 | $ 2 | $ 5 |
Securities - Summary of Activity in Allowance for Credit Losses for Held To Maturity Debt Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Allowance for credit losses: | ||||
Beginning balance | $ 2,355 | $ 1,727 | $ 2,082 | $ 2,026 |
Credit loss expense | 75 | 10 | 348 | (289) |
Allowance for credit losses ending balance | $ 2,430 | $ 1,737 | $ 2,430 | $ 1,737 |
Loans and Allowance for Credit Losses - Schedule of Loans Held for Sale (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale | $ 78 | $ 7,330 |
1-4 family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale | 68 | 712 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale | $ 10 | $ 6,618 |
Loans and Allowance for Credit Losses - Loan Modifications (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Receivables [Abstract] | ||||
Total modifications | $ 0 | $ 0 | $ 0 | $ 10,459 |
Goodwill and Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 233,709 | $ 233,727 |
Gross Carrying Amount | 90,920 | 90,070 |
Accumulated Amortization | (56,025) | (46,941) |
Net Carrying Amount | 34,895 | 43,129 |
Core deposit intangibles | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 43,578 | 43,578 |
Accumulated Amortization | (34,536) | (31,800) |
Net Carrying Amount | 9,042 | 11,778 |
Software intangible assets | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,932 | 16,932 |
Accumulated Amortization | (5,644) | (2,469) |
Net Carrying Amount | 11,288 | 14,463 |
Other intangible assets | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 30,410 | 29,560 |
Accumulated Amortization | (15,845) | (12,672) |
Net Carrying Amount | $ 14,565 | $ 16,888 |
Goodwill and Intangible Assets - Schedule of Changes in Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Goodwill [Roll Forward] | ||||
Beginning balance | $ 270,666 | $ 286,567 | $ 276,856 | $ 189,922 |
Acquired goodwill | 0 | 0 | 0 | 73,697 |
Acquired intangible assets | 851 | 0 | 851 | 27,292 |
Acquired goodwill - measurement period adjustment | 0 | (3,238) | (18) | (3,179) |
Amortization of intangibles | (2,913) | (3,274) | (9,085) | (7,677) |
Ending balance | $ 268,604 | $ 280,055 | $ 268,604 | $ 280,055 |
Equity Method Investment (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
Oct. 17, 2019 |
---|---|---|---|
Schedule of Equity Method Investments [Line Items] | |||
Total investment | $ 49,009 | $ 14,671 | |
Warehouse Solutions Inc | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment | $ 38,088 | ||
Common stock | 5,142 | ||
Warrants | 3,224 | ||
Total investment | $ 8,366 | $ 8,000 |
Derivative Financial Instruments - Pre-Tax Impact of Terminated Cash Flow Hedge on AOCI (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
AOCI Attributable to Parent, Before Tax [Roll Forward] | |||||
Beginning balance | $ 874,281 | $ 858,864 | $ 792,388 | $ 858,864 | $ 726,781 |
Ending balance | 891,173 | 886,665 | 820,674 | 891,173 | 820,674 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Discontinued Cash Flow Hedge | |||||
AOCI Attributable to Parent, Before Tax [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | 0 | 0 |
Unrealized gains arising during the period | 0 | $ 9,316 | 0 | 9,316 | 0 |
Reclassification adjustments for amortization of unrealized (gains) into net income | 0 | 0 | (9,316) | 0 | |
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instruments - Schedule of Fair Value of Derivative Financial Instruments Classification on Balance Sheet (Details) - Derivatives designated as hedging instruments - Interest rate swaps - Other assets - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 200,000 | $ 200,000 |
Fair Value Total | $ 6,164 |
Derivative Financial Instruments - Schedule of Effect of Fair Value and Cash Flow Hedge on Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative | $ 0 | $ 7 | $ (4,705) | $ 2,386 |
Amount of (Gain) or Loss Reclassified from AOCI into Income | 0 | (14) | 7,103 | (53) |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative | 0 | 7 | (4,705) | 2,386 |
Interest rate swaps | Interest Expense, Noninterest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) or Loss Reclassified from AOCI into Income | $ 0 | $ (7,103) | ||
Interest rate swaps | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) or Loss Reclassified from AOCI into Income | $ 14 | $ 53 |
Variable Interest Entities - Summary of Closed Collateralized Loan Obligation ("CLO") Funds (Details) - Collateralized Loan Obligation Funds - USD ($) $ in Thousands |
Jun. 20, 2017 |
Sep. 22, 2016 |
Jun. 02, 2016 |
---|---|---|---|
Trinitas IV | |||
Variable Interest Entity [Line Items] | |||
Offering Amount | $ 406,650 | ||
Trinitas V | |||
Variable Interest Entity [Line Items] | |||
Offering Amount | $ 409,000 | ||
Trinitas VI | |||
Variable Interest Entity [Line Items] | |||
Offering Amount | $ 717,100 |
Variable Interest Entities - Additional Information - (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Total held to maturity securities, net of ACL | $ 4,149 | $ 4,947 |
Collateralized Loan Obligation Funds | ||
Variable Interest Entity [Line Items] | ||
Total held to maturity securities, net of ACL | $ 4,149 | $ 4,947 |
Off-Balance Sheet Loan Commitments - Summary of Financial Instruments with Off-Balance Sheet Risk - (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 3,994 | $ 26,029 |
Variable Rate | 442,809 | 523,483 |
Total | 446,803 | 549,512 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 13,711 | 11,090 |
Variable Rate | 4,920 | 5,409 |
Total | 18,631 | 16,499 |
Commitments to purchase loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 0 | 0 |
Variable Rate | 79,030 | 108,423 |
Total | 79,030 | 108,423 |
Mortgage warehouse commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 0 | 0 |
Variable Rate | 851,939 | 823,060 |
Total | $ 851,939 | $ 823,060 |
Off-Balance Sheet Loan Commitments - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Other Noninterest Expense | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Credit loss expense (benefit) | $ (598) | $ (238) | $ (402) | $ (1,159) | |
Other Liabilities | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Allowance for credit losses on off-balance sheet credit exposure | $ 3,680 | $ 3,680 | $ 4,082 |
Stockholders' Equity - Summary of Capital Structure (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Class of Stock [Line Items] | ||
Shares authorized (in shares) | 50,000,000 | 50,000,000 |
Shares issued (in shares) | 28,321,716 | 28,261,680 |
Treasury shares (in shares) | (3,843,428) | (3,102,801) |
Shares outstanding (in shares) | 24,478,288 | 25,158,879 |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock Series C | ||
Class of Stock [Line Items] | ||
Shares authorized (in shares) | 51,750 | 51,750 |
Shares issued (in shares) | 45,000 | 45,000 |
Shares outstanding (in shares) | 45,000 | 45,000 |
Par value per share (in dollars per shares) | $ 0.01 | $ 0.01 |
Liquidation preference per share (in dollars per shares) | $ 1,000 | $ 1,000 |
Liquidation preference amount | $ 45,000,000 | $ 45,000,000 |
Dividend rate | 7.125% | 7.125% |
Stockholders' Equity - Stock Repurchase Programs (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
May 23, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Feb. 07, 2022 |
|
Class of Stock [Line Items] | ||||||
Total cost of shares repurchased into treasury stock | $ 51,943 | $ 1,241 | ||||
Stock Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Amount authorized under stock repurchase program | $ 75,000 | $ 50,000 | ||||
Stock repurchase program, period in force | 1 year | |||||
Shares repurchased into treasury stock (in shares) | 0 | 0 | 709,795 | 0 | ||
Average price of shares repurchased into treasury stock (in dollars per share) | $ 0 | $ 0 | $ 70.41 | $ 0 | ||
Total cost of shares repurchased into treasury stock | $ 0 | $ 0 | $ 50,000 | $ 0 |
Stock Based Compensation - Market Based PSUs Weighted-Average Assumptions (Details) - Performance stock units - market based - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 3 years | 3 years |
Stock price (in dollars per share) | $ 69.44 | $ 88.63 |
Triumph stock price volatility | 55.17% | 51.71% |
Risk-free rate | 2.84% | 0.35% |
Stock Based Compensation - Schedule of Information Related to Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cash received from option exercises, net | $ (74) | |
Cash received from option exercises, net | $ 196 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value of options exercised | 280 | 2,249 |
Cash received from option exercises, net | (74) | |
Cash received from option exercises, net | 196 | |
Tax benefit realized from option exercises | $ 59 | $ 472 |
Weighted average fair value per share of options granted (in dollars per share) | $ 32.15 | $ 35.37 |
Stock Based Compensation - Stock Option Weighted-Average Assumptions (Details) - Stock options |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.77% | 1.16% |
Expected term | 6 years 3 months | 6 years 3 months |
Expected stock price volatility | 43.33% | 39.26% |
Dividend yield | 0.00% | 0.00% |
Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Payments Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Transactional payment and audit fees | $ 3,545 | $ 3,095 | $ 10,156 | $ 4,251 |
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