DALLAS, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”) today announced earnings and operating results for the third quarter of 2019.
As part of how we measure our results, we use certain non-GAAP financial measures to ascertain performance. These non-GAAP financial measures are reconciled in the section labeled “Metrics and non-GAAP financial reconciliation” at the end of this press release.
2019 Third Quarter Highlights and Recent Developments
- For the third quarter of 2019, net income available to common stockholders was $14.3 million. Diluted earnings per share were $0.56.
- Net interest margin (“NIM”) was 5.85% for the quarter ended September 30, 2019.
- Total loans held for investment increased $373.5 million, or 9.7%, to $4.209 billion at September 30, 2019. Average loans for the quarter increased $235.7 million, or 6.4%, to $3.944 billion.
- Triumph Business Capital grew period-end clients to 6,471 clients, which is an increase of 16 clients, or 0.2%. The total dollar value of invoices purchased for the quarter ended September 30, 2019 was $1.451 billion with an average invoice price of $1,628.
- At September 30, 2019, there were 163 clients utilizing the TriumphPay platform, which is an increase of 17 clients, or 11.6%, during the quarter. For the quarter ended September 30, 2019, TriumphPay processed 168,562 invoices paying 30,333 distinct carriers a total of $190.3 million.
- During the quarter ended September 30, 2019, we repurchased 850,093 shares into treasury stock under our stock repurchase program at an average price of $29.38, for a total of $25.0 million. During the nine months ended September 30, 2019, we have repurchased 1,688,234 shares into treasury stock under our stock repurchase programs at an average price of $29.56, for a total of $49.9 million, effectively completing both of our previously announced $25.0 million stock repurchase programs.
Repurchase Program Authorization
On October 16, 2019 our board of directors authorized us to repurchase up to an additional $50.0 million of our outstanding common stock. We may repurchase these shares from time to time in open market transactions or through privately negotiated transactions at our discretion. The amount, timing and nature of any share repurchases will be based on a variety of factors, including the trading price of our common stock, applicable securities laws restrictions, regulatory limitations and market and economic factors. This repurchase program is authorized for a period of up to one year and does not require us to repurchase any specific number of shares. The repurchase program may be modified, suspended or discontinued at any time, at our discretion.
Balance Sheet
Total loans held for investment increased $373.5 million, or 9.7%, during the third quarter to $4.209 billion at September 30, 2019. The commercial finance portfolio increased $89.0 million, or 7.5%, to $1.276 billion, the national lending portfolio increased $249.4 million, or 52.3%, to $726.6 million, and the community banking portfolio increased $35.1 million, or 1.6%, to $2.207 billion during the quarter.
Total deposits were $3.698 billion at September 30, 2019, an increase of $38.9 million, or 1.1%, in the third quarter of 2019. Non-interest-bearing deposits accounted for 20% of total deposits and non-time deposits accounted for 57% of total deposits at September 30, 2019.
Net Interest Income
We earned net interest income for the quarter ended September 30, 2019 of $64.8 million compared to $63.4 million for the quarter ended June 30, 2019.
Yields on loans for the quarter ended September 30, 2019 were down 32 bps from the prior quarter to 7.63%. The average cost of our total deposits was 1.19% for the quarter ended September 30, 2019 compared to 1.14% for the quarter ended June 30, 2019.
Asset Quality
Non-performing assets were 0.91% of total assets at September 30, 2019 compared to 0.86% of total assets at June 30, 2019. The ratio of past due to total loans increased to 2.47% at September 30, 2019 from 1.90% at June 30, 2019. We recorded total net charge-offs of $0.4 million, or 0.01% of average loans, for the quarter ended September 30, 2019 compared to net charge-offs of $1.9 million, or 0.05% of average loans, for the quarter ended June 30, 2019.
We recorded a provision for loan losses of $2.9 million for the quarter ended September 30, 2019 compared to a provision of $3.7 million for the quarter ended June 30, 2019. From June 30, 2019 to September 30, 2019, our ALLL increased from $29.4 million or 0.77% of total loans to $31.9 million or 0.76% of total loans.
Non-Interest Income and Expense
We earned non-interest income for the quarter ended September 30, 2019 of $7.7 million compared to $7.6 million for the quarter ended June 30, 2019.
For the quarter ended September 30, 2019, non-interest expense totaled $52.2 million, compared to $50.7 million for the quarter ended June 30, 2019.
Conference Call Information
Aaron P. Graft, Vice Chairman and CEO and Bryce Fowler, CFO will review the quarterly results in a conference call for investors and analysts beginning at 7:00 a.m. Central Time on Thursday, October 17, 2019. Todd Ritterbusch, Chief Lending Officer, will also be available for questions.
To participate in the live conference call, please dial 1-855-940-9472 (Canada: 1-855-669-9657) and request to be joined into the Triumph Bancorp, Inc. call. A simultaneous audio-only webcast may be accessed via the Company's website at www.triumphbancorp.com through the Investor Relations, News & Events, Webcasts and Presentations links, or through a direct link here at: https://services.choruscall.com/links/tbk191017.html. An archive of this conference call will subsequently be available at this same location on the Company’s website.
About Triumph
Triumph Bancorp, Inc. (Nasdaq: TBK) is a financial holding company headquartered in Dallas, Texas. Triumph offers a diversified line of community banking, national lending, and commercial finance products through its bank subsidiary, TBK Bank, SSB. www.triumphbancorp.com
Forward-Looking Statements
This press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; risks related to the integration of acquired businesses (including our acquisitions of First Bancorp of Durango, Inc., Southern Colorado Corp., and the operating assets of Interstate Capital Corporation and certain of its affiliates) and any future acquisitions; changes in management personnel; interest rate risk; concentration of our factoring services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets, or deferred tax assets; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally, or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities, and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of the Federal Deposit Insurance Corporation insurance and other coverages; failure to receive regulatory approval for future acquisitions; and increases in our capital requirements.
While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2019.
Non-GAAP Financial Measures
This press release includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided at the end of this press release.
The following table sets forth key metrics used by Triumph to monitor our operations. Footnotes in this table can be found in our definitions of non-GAAP financial measures at the end of this document.
| | | As of and for the Three Months Ended | | | As of and for the Nine Months
Ended | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | | | September 30, | | | September 30, | |
| (Dollars in thousands) | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | | | 2019 | | | 2018 | |
| Financial Highlights: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 5,039,697 | | | $ | 4,783,189 | | | $ | 4,529,783 | | | $ | 4,559,779 | | | $ | 4,537,102 | | | $ | 5,039,697 | | | $ | 4,537,102 | |
| Loans held for investment | | $ | 4,209,417 | | | $ | 3,835,903 | | | $ | 3,612,869 | | | $ | 3,608,644 | | | $ | 3,512,143 | | | $ | 4,209,417 | | | $ | 3,512,143 | |
| Deposits | | $ | 3,697,833 | | | $ | 3,658,978 | | | $ | 3,314,440 | | | $ | 3,450,349 | | | $ | 3,439,049 | | | $ | 3,697,833 | | | $ | 3,439,049 | |
| Net income available to common stockholders | | $ | 14,317 | | | $ | 12,730 | | | $ | 14,788 | | | $ | 18,085 | | | $ | 8,975 | | | $ | 41,835 | | | $ | 33,045 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Performance Ratios - Annualized: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.17 | % | | | 1.09 | % | | | 1.33 | % | | | 1.60 | % | | | 0.90 | % | | | 1.20 | % | | | 1.21 | % |
| Return on average total equity | | | 8.79 | % | | | 7.83 | % | | | 9.30 | % | | | 11.35 | % | | | 5.88 | % | | | 8.63 | % | | | 8.40 | % |
| Return on average common equity | | | 8.79 | % | | | 7.83 | % | | | 9.30 | % | | | 11.40 | % | | | 5.85 | % | | | 8.63 | % | | | 8.41 | % |
| Return on average tangible common equity (1) | | | 12.56 | % | | | 11.19 | % | | | 13.43 | % | | | 16.73 | % | | | 7.57 | % | | | 12.38 | % | | | 10.27 | % |
| Yield on loans(2) | | | 7.63 | % | | | 7.95 | % | | | 7.99 | % | | | 8.14 | % | | | 8.33 | % | | | 7.85 | % | | | 8.05 | % |
| Cost of interest bearing deposits | | | 1.49 | % | | | 1.42 | % | | | 1.24 | % | | | 1.15 | % | | | 1.08 | % | | | 1.39 | % | | | 0.96 | % |
| Cost of total deposits | | | 1.19 | % | | | 1.14 | % | | | 0.99 | % | | | 0.91 | % | | | 0.85 | % | | | 1.11 | % | | | 0.76 | % |
| Cost of total funds | | | 1.41 | % | | | 1.40 | % | | | 1.28 | % | | | 1.14 | % | | | 1.16 | % | | | 1.36 | % | | | 1.06 | % |
| Net interest margin(2) | | | 5.85 | % | | | 5.99 | % | | | 6.15 | % | | | 6.34 | % | | | 6.59 | % | | | 5.99 | % | | | 6.35 | % |
| Net non-interest expense to average assets | | | 3.64 | % | | | 3.68 | % | | | 3.70 | % | | | 3.55 | % | | | 4.19 | % | | | 3.67 | % | | | 3.76 | % |
| Adjusted net non-interest expense to average assets (1) | | | 3.64 | % | | | 3.68 | % | | | 3.70 | % | | | 3.55 | % | | | 3.62 | % | | | 3.67 | % | | | 3.55 | % |
| Efficiency ratio | | | 71.93 | % | | | 71.37 | % | | | 70.54 | % | | | 65.52 | % | | | 72.15 | % | | | 71.29 | % | | | 67.50 | % |
| Adjusted efficiency ratio (1) | | | 71.93 | % | | | 71.37 | % | | | 70.54 | % | | | 65.52 | % | | | 63.49 | % | | | 71.29 | % | | | 63.98 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asset Quality:(3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Past due to total loans | | | 2.47 | % | | | 1.90 | % | | | 2.33 | % | | | 2.41 | % | | | 2.23 | % | | | 2.47 | % | | | 2.23 | % |
| Non-performing loans to total loans | | | 1.00 | % | | | 0.96 | % | | | 0.95 | % | | | 1.00 | % | | | 1.13 | % | | | 1.00 | % | | | 1.13 | % |
| Non-performing assets to total assets | | | 0.91 | % | | | 0.86 | % | | | 0.84 | % | | | 0.84 | % | | | 0.93 | % | | | 0.91 | % | | | 0.93 | % |
| ALLL to non-performing loans | | | 75.58 | % | | | 79.91 | % | | | 80.70 | % | | | 76.47 | % | | | 68.82 | % | | | 75.58 | % | | | 68.82 | % |
| ALLL to total loans | | | 0.76 | % | | | 0.77 | % | | | 0.76 | % | | | 0.76 | % | | | 0.78 | % | | | 0.76 | % | | | 0.78 | % |
| Net charge-offs to average loans | | | 0.01 | % | | | 0.05 | % | | | 0.03 | % | | | 0.05 | % | | | 0.12 | % | | | 0.09 | % | | | 0.19 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Tier 1 capital to average assets(4) | | | 10.37 | % | | | 10.84 | % | | | 11.32 | % | | | 11.08 | % | | | 11.75 | % | | | 10.37 | % | | | 11.75 | % |
| Tier 1 capital to risk-weighted assets(4) | | | 10.08 | % | | | 11.08 | % | | | 11.76 | % | | | 11.49 | % | | | 11.16 | % | | | 10.08 | % | | | 11.16 | % |
| Common equity tier 1 capital to risk-weighted assets(4) | | | 9.26 | % | | | 10.19 | % | | | 10.81 | % | | | 10.55 | % | | | 9.96 | % | | | 9.26 | % | | | 9.96 | % |
| Total capital to risk-weighted assets(4) | | | 11.79 | % | | | 12.88 | % | | | 13.62 | % | | | 13.35 | % | | | 13.05 | % | | | 11.79 | % | | | 13.05 | % |
| Total equity to total assets | | | 12.57 | % | | | 13.45 | % | | | 14.27 | % | | | 13.96 | % | | | 13.59 | % | | | 12.57 | % | | | 13.59 | % |
| Tangible common stockholders' equity to tangible assets(1) | | | 9.10 | % | | | 9.78 | % | | | 10.37 | % | | | 10.03 | % | | | 9.35 | % | | | 9.10 | % | | | 9.35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Per Share Amounts: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Book value per share | | $ | 24.99 | | | $ | 24.56 | | | $ | 24.19 | | | $ | 23.62 | | | $ | 23.10 | | | $ | 24.99 | | | $ | 23.10 | |
| Tangible book value per share (1) | | $ | 17.40 | | | $ | 17.13 | | | $ | 16.82 | | | $ | 16.22 | | | $ | 15.42 | | | $ | 17.40 | | | $ | 15.42 | |
| Basic earnings per common share | | $ | 0.56 | | | $ | 0.48 | | | $ | 0.55 | | | $ | 0.68 | | | $ | 0.34 | | | $ | 1.60 | | | $ | 1.37 | |
| Diluted earnings per common share | | $ | 0.56 | | | $ | 0.48 | | | $ | 0.55 | | | $ | 0.67 | | | $ | 0.34 | | | $ | 1.59 | | | $ | 1.35 | |
| Adjusted diluted earnings per common share(1) | | $ | 0.56 | | | $ | 0.48 | | | $ | 0.55 | | | $ | 0.67 | | | $ | 0.51 | | | $ | 1.59 | | | $ | 1.53 | |
| Shares outstanding end of period | | | 25,357,985 | | | | 26,198,308 | | | | 26,709,411 | | | | 26,949,936 | | | | 26,279,761 | | | | 25,357,985 | | | | 26,279,761 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unaudited consolidated balance sheet as of:
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| (Dollars in thousands) | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | |
| ASSETS | | | | | | | | | | | | | | | | | | | | |
| Total cash and cash equivalents | | $ | 115,043 | | | $ | 209,305 | | | $ | 171,950 | | | $ | 234,939 | | | $ | 282,409 | |
| Securities - available for sale | | | 302,917 | | | | 329,991 | | | | 339,465 | | | | 336,423 | | | | 355,981 | |
| Securities - held to maturity | | | 8,517 | | | | 8,573 | | | | 8,499 | | | | 8,487 | | | | 8,403 | |
| Equity securities | | | 5,543 | | | | 5,479 | | | | 5,183 | | | | 5,044 | | | | 4,981 | |
| Loans held for sale | | | 7,499 | | | | 2,877 | | | | 610 | | | | 2,106 | | | | 683 | |
| Loans held for investment | | | 4,209,417 | | | | 3,835,903 | | | | 3,612,869 | | | | 3,608,644 | | | | 3,512,143 | |
| Allowance for loan and lease losses | | | (31,895 | ) | | | (29,416 | ) | | | (27,605 | ) | | | (27,571 | ) | | | (27,256 | ) |
| Loans, net | | | 4,177,522 | | | | 3,806,487 | | | | 3,585,264 | | | | 3,581,073 | | | | 3,484,887 | |
| FHLB and other restricted stock | | | 23,960 | | | | 18,037 | | | | 21,191 | | | | 15,943 | | | | 23,109 | |
| Premises and equipment, net | | | 87,112 | | | | 84,998 | | | | 84,931 | | | | 83,392 | | | | 82,935 | |
| Other real estate owned ("OREO"), net | | | 2,849 | | | | 3,351 | | | | 3,073 | | | | 2,060 | | | | 2,442 | |
| Goodwill and intangible assets, net | | | 192,440 | | | | 194,668 | | | | 197,015 | | | | 199,417 | | | | 201,842 | |
| Bank-owned life insurance | | | 40,724 | | | | 40,847 | | | | 40,667 | | | | 40,509 | | | | 40,339 | |
| Deferred tax asset, net | | | 5,971 | | | | 7,278 | | | | 7,608 | | | | 8,438 | | | | 8,137 | |
| Other assets | | | 69,600 | | | | 71,298 | | | | 64,327 | | | | 41,948 | | | | 40,954 | |
| Total assets | | $ | 5,039,697 | | | $ | 4,783,189 | | | $ | 4,529,783 | | | $ | 4,559,779 | | | $ | 4,537,102 | |
| LIABILITIES | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing deposits | | $ | 754,233 | | | $ | 684,223 | | | $ | 667,597 | | | $ | 724,527 | | | $ | 697,903 | |
| Interest bearing deposits | | | 2,943,600 | | | | 2,974,755 | | | | 2,646,843 | | | | 2,725,822 | | | | 2,741,146 | |
| Total deposits | | | 3,697,833 | | | | 3,658,978 | | | | 3,314,440 | | | | 3,450,349 | | | | 3,439,049 | |
| Customer repurchase agreements | | | 14,124 | | | | 12,788 | | | | 3,727 | | | | 4,485 | | | | 13,248 | |
| Federal Home Loan Bank advances | | | 530,000 | | | | 305,000 | | | | 405,000 | | | | 330,000 | | | | 330,000 | |
| Subordinated notes | | | 49,010 | | | | 48,983 | | | | 48,956 | | | | 48,929 | | | | 48,903 | |
| Junior subordinated debentures | | | 39,443 | | | | 39,320 | | | | 39,200 | | | | 39,083 | | | | 38,966 | |
| Other liabilities | | | 75,594 | | | | 74,758 | | | | 72,244 | | | | 50,326 | | | | 50,295 | |
| Total liabilities | | | 4,406,004 | | | | 4,139,827 | | | | 3,883,567 | | | | 3,923,172 | | | | 3,920,461 | |
| EQUITY | | | | | | | | | | | | | | | | | | | | |
| Preferred stock series A | | | — | | | | — | | | | — | | | | — | | | | 4,550 | |
| Preferred stock series B | | | — | | | | — | | | | — | | | | — | | | | 5,108 | |
| Common stock | | | 272 | | | | 271 | | | | 271 | | | | 271 | | | | 264 | |
| Additional paid-in-capital | | | 472,368 | | | | 471,145 | | | | 470,292 | | | | 469,341 | | | | 458,920 | |
| Treasury stock, at cost | | | (52,632 | ) | | | (27,468 | ) | | | (9,881 | ) | | | (2,288 | ) | | | (2,285 | ) |
| Retained earnings | | | 212,321 | | | | 198,004 | | | | 185,274 | | | | 170,486 | | | | 152,401 | |
| Accumulated other comprehensive income | | | 1,364 | | | | 1,410 | | | | 260 | | | | (1,203 | ) | | | (2,317 | ) |
| Total equity | | | 633,693 | | | | 643,362 | | | | 646,216 | | | | 636,607 | | | | 616,641 | |
| Total liabilities and equity | | $ | 5,039,697 | | | $ | 4,783,189 | | | $ | 4,529,783 | | | $ | 4,559,779 | | | $ | 4,537,102 | |
| | | | | | | | | | | | | | | | | | | | | |
Unaudited consolidated statement of income:
| | | For the Three Months Ended | | | For the Nine Months Ended | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | | | September 30, | | | September 30, | |
| (Dollars in thousands) | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | | | 2019 | | | 2018 | |
| Interest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans, including fees | | $ | 50,249 | | | $ | 47,910 | | | $ | 45,094 | | | $ | 44,435 | | | $ | 41,257 | | | $ | 143,253 | | | $ | 116,288 | |
| Factored receivables, including fees | | | 25,570 | | | | 25,558 | | | | 24,556 | | | | 28,070 | | | | 27,939 | | | | 75,684 | | | | 64,033 | |
| Securities | | | 2,784 | | | | 2,667 | | | | 2,644 | | | | 2,314 | | | | 1,551 | | | | 8,095 | | | | 4,040 | |
| FHLB and other restricted stock | | | 209 | | | | 146 | | | | 192 | | | | 154 | | | | 147 | | | | 547 | | | | 353 | |
| Cash deposits | | | 603 | | | | 1,022 | | | | 778 | | | | 877 | | | | 865 | | | | 2,403 | | | | 2,412 | |
| Total interest income | | | 79,415 | | | | 77,303 | | | | 73,264 | | | | 75,850 | | | | 71,759 | | | | 229,982 | | | | 187,126 | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 11,036 | | | | 10,010 | | | | 8,218 | | | | 7,931 | | | | 6,219 | | | | 29,264 | | | | 15,127 | |
| Subordinated notes | | | 840 | | | | 839 | | | | 839 | | | | 839 | | | | 837 | | | | 2,518 | | | | 2,512 | |
| Junior subordinated debentures | | | 719 | | | | 744 | | | | 760 | | | | 717 | | | | 714 | | | | 2,223 | | | | 2,024 | |
| Other borrowings | | | 2,055 | | | | 2,291 | | | | 2,136 | | | | 1,482 | | | | 2,207 | | | | 6,482 | | | | 5,294 | |
| Total interest expense | | | 14,650 | | | | 13,884 | | | | 11,953 | | | | 10,969 | | | | 9,977 | | | | 40,487 | | | | 24,957 | |
| Net interest income | | | 64,765 | | | | 63,419 | | | | 61,311 | | | | 64,881 | | | | 61,782 | | | | 189,495 | | | | 162,169 | |
| Provision for loan losses | | | 2,865 | | | | 3,681 | | | | 1,014 | | | | 1,910 | | | | 6,803 | | | | 7,560 | | | | 14,257 | |
| Net interest income after provision for loan losses | | | 61,900 | | | | 59,738 | | | | 60,297 | | | | 62,971 | | | | 54,979 | | | | 181,935 | | | | 147,912 | |
| Non-interest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Service charges on deposits | | | 1,937 | | | | 1,700 | | | | 1,606 | | | | 1,702 | | | | 1,412 | | | | 5,243 | | | | 3,767 | |
| Card income | | | 2,015 | | | | 2,071 | | | | 1,844 | | | | 1,999 | | | | 1,877 | | | | 5,930 | | | | 4,515 | |
| Net OREO gains (losses) and valuation adjustments | | | (56 | ) | | | 148 | | | | 209 | | | | 37 | | | | 65 | | | | 301 | | | | (551 | ) |
| Net gains (losses) on sale of securities | | | 19 | | | | 14 | | | | (11 | ) | | | — | | | | — | | | | 22 | | | | (272 | ) |
| Fee income | | | 1,624 | | | | 1,519 | | | | 1,612 | | | | 1,636 | | | | 1,593 | | | | 4,755 | | | | 3,514 | |
| Insurance commissions | | | 1,247 | | | | 961 | | | | 919 | | | | 846 | | | | 1,113 | | | | 3,127 | | | | 2,646 | |
| Gain on sale of subsidiary | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,071 | |
| Other | | | 956 | | | | 1,210 | | | | 1,359 | | | | 574 | | | | (1 | ) | | | 3,525 | | | | 1,486 | |
| Total non-interest income | | | 7,742 | | | | 7,623 | | | | 7,538 | | | | 6,794 | | | | 6,059 | | | | 22,903 | | | | 16,176 | |
| Non-interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 28,717 | | | | 28,120 | | | | 26,439 | | | | 25,586 | | | | 24,695 | | | | 83,276 | | | | 64,626 | |
| Occupancy, furniture and equipment | | | 4,505 | | | | 4,502 | | | | 4,522 | | | | 4,402 | | | | 3,553 | | | | 13,529 | | | | 9,621 | |
| FDIC insurance and other regulatory assessments | | | (2 | ) | | | 303 | | | | 299 | | | | 184 | | | | 363 | | | | 600 | | | | 945 | |
| Professional fees | | | 1,969 | | | | 1,550 | | | | 1,865 | | | | 1,837 | | | | 3,384 | | | | 5,384 | | | | 7,102 | |
| Amortization of intangible assets | | | 2,228 | | | | 2,347 | | | | 2,402 | | | | 2,438 | | | | 2,064 | | | | 6,977 | | | | 4,542 | |
| Advertising and promotion | | | 1,379 | | | | 1,796 | | | | 1,604 | | | | 1,036 | | | | 1,609 | | | | 4,779 | | | | 3,938 | |
| Communications and technology | | | 5,382 | | | | 4,988 | | | | 4,874 | | | | 4,388 | | | | 7,252 | | | | 15,244 | | | | 13,882 | |
| Other | | | 7,975 | | | | 7,098 | | | | 6,561 | | | | 7,091 | | | | 6,026 | | | | 21,634 | | | | 15,735 | |
| Total non-interest expense | | | 52,153 | | | | 50,704 | | | | 48,566 | | | | 46,962 | | | | 48,946 | | | | 151,423 | | | | 120,391 | |
| Net income before income tax | | | 17,489 | | | | 16,657 | | | | 19,269 | | | | 22,803 | | | | 12,092 | | | | 53,415 | | | | 43,697 | |
| Income tax expense | | | 3,172 | | | | 3,927 | | | | 4,481 | | | | 4,718 | | | | 2,922 | | | | 11,580 | | | | 10,074 | |
| Net income | | $ | 14,317 | | | $ | 12,730 | | | $ | 14,788 | | | $ | 18,085 | | | $ | 9,170 | | | $ | 41,835 | | | $ | 33,623 | |
| Dividends on preferred stock | | | — | | | | — | | | | — | | | | — | | | | (195 | ) | | | — | | | | (578 | ) |
| Net income available to common stockholders | | $ | 14,317 | | | $ | 12,730 | | | $ | 14,788 | | | $ | 18,085 | | | $ | 8,975 | | | $ | 41,835 | | | $ | 33,045 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share:
| | | For the Three Months Ended | | | For the Nine Months Ended | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | | | September 30, | | | September 30, | |
| (Dollars in thousands) | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | | | 2019 | | | 2018 | |
| Basic | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income to common stockholders | | $ | 14,317 | | | $ | 12,730 | | | $ | 14,788 | | | $ | 18,085 | | | $ | 8,975 | | | $ | 41,835 | | | $ | 33,045 | |
| Weighted average common shares outstanding | | | 25,621,054 | | | | 26,396,351 | | | | 26,679,724 | | | | 26,666,554 | | | | 26,178,194 | | | | 26,228,499 | | | | 24,159,543 | |
| Basic earnings per common share | | $ | 0.56 | | | $ | 0.48 | | | $ | 0.55 | | | $ | 0.68 | | | $ | 0.34 | | | $ | 1.60 | | | $ | 1.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income to common stockholders | | $ | 14,317 | | | $ | 12,730 | | | $ | 14,788 | | | $ | 18,085 | | | $ | 8,975 | | | $ | 41,835 | | | $ | 33,045 | |
| Dilutive effect of preferred stock | | | — | | | | — | | | | — | | | | — | | | | 195 | | | | — | | | | 578 | |
| Net income to common stockholders - diluted | | $ | 14,317 | | | $ | 12,730 | | | $ | 14,788 | | | $ | 18,085 | | | $ | 9,170 | | | $ | 41,835 | | | $ | 33,623 | |
| Weighted average common shares outstanding | | | 25,621,054 | | | | 26,396,351 | | | | 26,679,724 | | | | 26,666,554 | | | | 26,178,194 | | | | 26,228,499 | | | | 24,159,543 | |
| Dilutive effects of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Assumed conversion of Preferred A | | | — | | | | — | | | | — | | | | 89,240 | | | | 315,773 | | | | — | | | | 315,773 | |
| Assumed conversion of Preferred B | | | — | | | | — | | | | — | | | | 100,176 | | | | 354,471 | | | | — | | | | 354,471 | |
| Assumed exercises of stock options | | | 60,068 | | | | 59,962 | | | | 64,166 | | | | 76,219 | | | | 90,320 | | | | 61,054 | | | | 86,728 | |
| Restricted stock awards | | | 45,631 | | | | 30,110 | | | | 49,795 | | | | 46,457 | | | | 45,796 | | | | 40,572 | | | | 55,087 | |
| Restricted stock units | | | 3,045 | | | | — | | | | — | | | | 1,303 | | | | 7,276 | | | | 57 | | | | 2,706 | |
| Performance stock units | | | 4,673 | | | | — | | | | — | | | | — | | | | — | | | | 1,558 | | | | — | |
| Weighted average shares outstanding - diluted | | | 25,734,471 | | | | 26,486,423 | | | | 26,793,685 | | | | 26,979,949 | | | | 26,991,830 | | | | 26,331,740 | | | | 24,974,308 | |
| Diluted earnings per common share | | $ | 0.56 | | | $ | 0.48 | | | $ | 0.55 | | | $ | 0.67 | | | $ | 0.34 | | | $ | 1.59 | | | $ | 1.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows: | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | | | For the Nine Months Ended | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | | | September 30, | | | September 30, | |
| | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | | | 2019 | | | 2018 | |
| Assumed conversion of Preferred A | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Assumed conversion of Preferred B | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Stock options | | | 67,023 | | | | 70,037 | | | | 50,752 | | | | 51,952 | | | | 51,952 | | | | 67,023 | | | | 51,952 | |
| Restricted stock awards | | | 3,209 | | | | — | | | | 13,290 | | | | 14,513 | | | | 14,513 | | | | 3,209 | | | | 14,513 | |
| Restricted stock units | | | — | | | | 58,400 | | | | 58,400 | | | | — | | | | — | | | | 54,077 | | | | — | |
| Performance stock units | | | 55,228 | | | | 70,879 | | | | 58,400 | | | | 59,658 | | | | 59,658 | | | | 55,228 | | | | 59,658 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans held for investment summarized as of:
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| (Dollars in thousands) | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | |
| Commercial real estate | | $ | 1,115,559 | | | $ | 1,098,279 | | | $ | 1,093,882 | | | $ | 992,080 | | | $ | 906,494 | |
| Construction, land development, land | | | 164,186 | | | | 157,861 | | | | 145,002 | | | | 179,591 | | | | 190,920 | |
| 1-4 family residential properties | | | 186,405 | | | | 186,070 | | | | 194,067 | | | | 190,185 | | | | 194,752 | |
| Farmland | | | 161,447 | | | | 144,594 | | | | 156,299 | | | | 170,540 | | | | 177,313 | |
| Commercial | | | 1,369,505 | | | | 1,257,330 | | | | 1,117,640 | | | | 1,114,971 | | | | 1,123,598 | |
| Factored receivables | | | 599,651 | | | | 583,131 | | | | 570,663 | | | | 617,791 | | | | 611,285 | |
| Consumer | | | 24,967 | | | | 26,048 | | | | 27,941 | | | | 29,822 | | | | 31,423 | |
| Mortgage warehouse | | | 587,697 | | | | 382,590 | | | | 307,375 | | | | 313,664 | | | | 276,358 | |
| Total loans | | $ | 4,209,417 | | | $ | 3,835,903 | | | $ | 3,612,869 | | | $ | 3,608,644 | | | $ | 3,512,143 | |
| | | | | | | | | | | | | | | | | | | | | |
Our total loans held for investment portfolio consists of traditional community bank loans as well as commercial finance product lines focused on businesses that require specialized financial solutions and national lending product lines that further diversify our lending operations.
Commercial finance loans are further summarized below:
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| (Dollars in thousands) | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | |
| Commercial - Equipment | | $ | 429,412 | | | $ | 395,094 | | | $ | 364,447 | | | $ | 352,037 | | | $ | 323,832 | |
| Commercial - Asset-based lending | | | 247,026 | | | | 208,896 | | | | 174,447 | | | | 214,110 | | | | 273,096 | |
| Factored receivables | | | 599,651 | | | | 583,131 | | | | 570,663 | | | | 617,791 | | | | 611,285 | |
| Commercial finance | | $ | 1,276,089 | | | $ | 1,187,121 | | | $ | 1,109,557 | | | $ | 1,183,938 | | | $ | 1,208,213 | |
| | | | | | | | | | | | | | | | | | | | | |
| Commercial finance % of total loans | | | 30 | % | | | 31 | % | | | 31 | % | | | 33 | % | | | 34 | % |
| | | | | | | | | | | | | | | | | | | | | |
National lending loans are further summarized below:
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| (Dollars in thousands) | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | |
| Mortgage warehouse | | $ | 587,697 | | | $ | 382,590 | | | $ | 307,375 | | | $ | 313,664 | | | $ | 276,358 | |
| Commercial - Liquid credit | | | 37,386 | | | | 21,758 | | | | 960 | | | | 963 | | | | 966 | |
| Commercial - Premium finance | | | 101,562 | | | | 72,898 | | | | 77,389 | | | | 72,302 | | | | 75,293 | |
| National lending | | $ | 726,645 | | | $ | 477,246 | | | $ | 385,724 | | | $ | 386,929 | | | $ | 352,617 | |
| | | | | | | | | | | | | | | | | | | | | |
| National lending % of total loans | | | 17 | % | | | 12 | % | | | 11 | % | | | 11 | % | | | 10 | % |
| | | | | | | | | | | | | | | | | | | | | |
Additional information pertaining to our loan portfolio, summarized for the quarters ended:
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| (Dollars in thousands) | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | |
| Average community banking | | $ | 2,193,533 | | | $ | 2,166,122 | | | $ | 2,103,816 | | | $ | 2,012,255 | | | $ | 1,748,936 | |
| Average commercial finance | | | 1,208,823 | | | | 1,168,110 | | | | 1,123,978 | | | | 1,190,586 | | | | 1,184,064 | |
| Average national lending | | | 541,367 | | | | 373,755 | | | | 307,249 | | | | 329,630 | | | | 360,719 | |
| Average total loans | | $ | 3,943,723 | | | $ | 3,707,987 | | | $ | 3,535,043 | | | $ | 3,532,471 | | | $ | 3,293,719 | |
| Community banking yield | | | 5.79 | % | | | 5.88 | % | | | 5.91 | % | | | 5.82 | % | | | 5.75 | % |
| Commercial finance yield | | | 12.31 | % | | | 12.52 | % | | | 12.50 | % | | | 12.82 | % | | | 13.00 | % |
| National lending yield | | | 4.63 | % | | | 5.62 | % | | | 5.73 | % | | | 5.44 | % | | | 5.54 | % |
| Total loan yield | | | 7.63 | % | | | 7.95 | % | | | 7.99 | % | | | 8.14 | % | | | 8.33 | % |
| | | | | | | | | | | | | | | | | | | | | |
Information pertaining to our factoring segment, which includes only factoring originated by our Triumph Business Capital subsidiary, summarized as of and for the quarters ended:
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | |
| Factored receivable period end balance | | $ | 562,009,000 | | | $ | 544,601,000 | | | $ | 534,420,000 | | | $ | 588,750,000 | | | $ | 579,985,000 | |
| Yield on average receivable balance | | | 18.23 | % | | | 18.73 | % | | | 17.96 | % | | | 18.24 | % | | | 18.96 | % |
| Rolling twelve quarter annual charge-off rate | | | 0.36 | % | | | 0.40 | % | | | 0.39 | % | | | 0.37 | % | | | 0.38 | % |
| Factored receivables - transportation concentration | | | 83 | % | | | 83 | % | | | 81 | % | | | 83 | % | | | 83 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Interest income, including fees | | $ | 24,869,000 | | | $ | 24,762,000 | | | $ | 23,803,000 | | | $ | 27,578,000 | | | $ | 27,420,000 | |
| Non-interest income | | | 1,291,000 | | | | 1,205,000 | | | | 1,077,000 | | | | 1,032,000 | | | | 942,000 | |
| Factored receivable total revenue | | | 26,160,000 | | | | 25,967,000 | | | | 24,880,000 | | | | 28,610,000 | | | | 28,362,000 | |
| Average net funds employed | | | 494,198,000 | | | | 483,203,000 | | | | 490,241,000 | | | | 547,996,000 | | | | 525,499,000 | |
| Yield on average net funds employed | | | 21.00 | % | | | 21.55 | % | | | 20.58 | % | | | 20.71 | % | | | 21.41 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Accounts receivable purchased | | $ | 1,450,905,000 | | | $ | 1,408,982,000 | | | $ | 1,325,140,000 | | | $ | 1,541,332,000 | | | $ | 1,503,049,000 | |
| Number of invoices purchased | | | 890,986 | | | | 874,248 | | | | 789,838 | | | | 882,042 | | | | 836,771 | |
| Average invoice size | | $ | 1,628 | | | $ | 1,612 | | | $ | 1,678 | | | $ | 1,747 | | | $ | 1,796 | |
| Average invoice size - transportation | | $ | 1,497 | | | $ | 1,492 | | | $ | 1,541 | | | $ | 1,625 | | | $ | 1,666 | |
| Average invoice size - non-transportation | | $ | 3,467 | | | $ | 3,047 | | | $ | 3,276 | | | $ | 3,209 | | | $ | 3,267 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net new clients | | | 16 | | | | 73 | | | | 191 | | | | 259 | | | | 422 | |
| Period end clients | | | 6,471 | | | | 6,455 | | | | 6,382 | | | | 6,191 | | | | 5,932 | |
| | | | | | | | | | | | | | | | | | | | | |
Deposits summarized as of:
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| (Dollars in thousands) | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | |
| Non-interest bearing demand | | $ | 754,233 | | | $ | 684,223 | | | $ | 667,597 | | | $ | 724,527 | | | $ | 697,903 | |
| Interest bearing demand | | | 587,123 | | | | 587,164 | | | | 602,088 | | | | 615,704 | | | | 608,775 | |
| Individual retirement accounts | | | 108,593 | | | | 111,328 | | | | 112,696 | | | | 115,583 | | | | 118,459 | |
| Money market | | | 424,162 | | | | 440,289 | | | | 372,109 | | | | 443,663 | | | | 413,402 | |
| Savings | | | 356,368 | | | | 362,594 | | | | 372,914 | | | | 369,389 | | | | 373,062 | |
| Certificates of deposit | | | 1,120,850 | | | | 1,122,873 | | | | 851,411 | | | | 835,127 | | | | 854,048 | |
| Brokered deposits | | | 346,504 | | | | 350,507 | | | | 335,625 | | | | 346,356 | | | | 373,400 | |
| Total deposits | | $ | 3,697,833 | | | $ | 3,658,978 | | | $ | 3,314,440 | | | $ | 3,450,349 | | | $ | 3,439,049 | |
| | | | | | | | | | | | | | | | | | | | | |
Net interest margin summarized for the three months ended:
| | | September 30, 2019 | | | June 30, 2019 | |
| | | Average | | | | | | | Average | | | Average | | | | | | | Average | |
| (Dollars in thousands) | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
| Interest earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest earning cash balances | | $ | 104,569 | | | $ | 603 | | | | 2.29 | % | | $ | 166,426 | | | $ | 1,022 | | | | 2.46 | % |
| Taxable securities | | | 278,878 | | | | 2,495 | | | | 3.55 | % | | | 287,607 | | | | 2,317 | | | | 3.23 | % |
| Tax-exempt securities | | | 48,685 | | | | 289 | | | | 2.36 | % | | | 61,712 | | | | 350 | | | | 2.28 | % |
| FHLB and other restricted stock | | | 19,698 | | | | 209 | | | | 4.21 | % | | | 21,851 | | | | 146 | | | | 2.67 | % |
| Loans | | | 3,943,723 | | | | 75,819 | | | | 7.63 | % | | | 3,707,987 | | | | 73,468 | | | | 7.95 | % |
| Total interest earning assets | | $ | 4,395,553 | | | $ | 79,415 | | | | 7.17 | % | | $ | 4,245,583 | | | $ | 77,303 | | | | 7.30 | % |
| Non-interest earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Other assets | | | 444,987 | | | | | | | | | | | | 449,064 | | | | | | | | | |
| Total assets | | $ | 4,840,540 | | | | | | | | | | | $ | 4,694,647 | | | | | | | | | |
| Interest bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing demand | | $ | 585,706 | | | $ | 355 | | | | 0.24 | % | | $ | 592,593 | | | $ | 391 | | | | 0.26 | % |
| Individual retirement accounts | | | 110,049 | | | | 454 | | | | 1.64 | % | | | 111,962 | | | | 437 | | | | 1.57 | % |
| Money market | | | 416,526 | | | | 1,406 | | | | 1.34 | % | | | 419,066 | | | | 1,473 | | | | 1.41 | % |
| Savings | | | 359,169 | | | | 117 | | | | 0.13 | % | | | 366,953 | | | | 120 | | | | 0.13 | % |
| Certificates of deposit | | | 1,113,006 | | | | 6,588 | | | | 2.35 | % | | | 1,006,950 | | | | 5,568 | | | | 2.22 | % |
| Brokered deposits | | | 352,430 | | | | 2,116 | | | | 2.38 | % | | | 337,086 | | | | 2,021 | | | | 2.40 | % |
| Total interest bearing deposits | | | 2,936,886 | | | | 11,036 | | | | 1.49 | % | | | 2,834,610 | | | | 10,010 | | | | 1.42 | % |
| Subordinated notes | | | 48,994 | | | | 840 | | | | 6.80 | % | | | 48,967 | | | | 839 | | | | 6.87 | % |
| Junior subordinated debentures | | | 39,364 | | | | 719 | | | | 7.25 | % | | | 39,241 | | | | 744 | | | | 7.60 | % |
| Other borrowings | | | 364,950 | | | | 2,055 | | | | 2.23 | % | | | 368,455 | | | | 2,291 | | | | 2.49 | % |
| Total interest bearing liabilities | | $ | 3,390,194 | | | $ | 14,650 | | | | 1.71 | % | | $ | 3,291,273 | | | $ | 13,884 | | | | 1.69 | % |
| Non-interest bearing liabilities and equity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | | 735,527 | | | | | | | | | | | | 686,923 | | | | | | | | | |
| Other liabilities | | | 68,778 | | | | | | | | | | | | 64,104 | | | | | | | | | |
| Total equity | | | 646,041 | | | | | | | | | | | | 652,347 | | | | | | | | | |
| Total liabilities and equity | | $ | 4,840,540 | | | | | | | | | | | $ | 4,694,647 | | | | | | | | | |
| Net interest income | | | | | | $ | 64,765 | | | | | | | | | | | $ | 63,419 | | | | | |
| Interest spread | | | | | | | | | | | 5.46 | % | | | | | | | | | | | 5.61 | % |
| Net interest margin | | | | | | | | | | | 5.85 | % | | | | | | | | | | | 5.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Metrics and non-GAAP financial reconciliation:
| | | As of and for the Three Months Ended | | | As of and for the Nine Months
Ended | |
| (Dollars in thousands, | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | | | September 30, | | | September 30, | |
| except per share amounts) | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | | | 2019 | | | 2018 | |
| Net income available to common stockholders | | $ | 14,317 | | | $ | 12,730 | | | $ | 14,788 | | | $ | 18,085 | | | $ | 8,975 | | | $ | 41,835 | | | $ | 33,045 | |
| Gain on sale of subsidiary or division | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1,071 | ) |
| Transaction related costs | | | — | | | | — | | | | — | | | | — | | | | 5,871 | | | | — | | | | 6,965 | |
| Tax effect of adjustments | | | — | | | | — | | | | — | | | | — | | | | (1,392 | ) | | | — | | | | (1,401 | ) |
| Adjusted net income available to common stockholders | | $ | 14,317 | | | $ | 12,730 | | | $ | 14,788 | | | $ | 18,085 | | | $ | 13,454 | | | $ | 41,835 | | | $ | 37,538 | |
| Dilutive effect of convertible preferred stock | | | — | | | | — | | | | — | | | | — | | | | 195 | | | | — | | | | 578 | |
| Adjusted net income available to common stockholders - diluted | | $ | 14,317 | | | $ | 12,730 | | | $ | 14,788 | | | $ | 18,085 | | | $ | 13,649 | | | $ | 41,835 | | | $ | 38,116 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding - diluted | | | 25,734,471 | | | | 26,486,423 | | | | 26,793,685 | | | | 26,979,949 | | | | 26,991,830 | | | | 26,331,740 | | | | 24,974,308 | |
| Adjusted effects of assumed Preferred Stock conversion | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Adjusted weighted average shares outstanding - diluted | | | 25,734,471 | | | | 26,486,423 | | | | 26,793,685 | | | | 26,979,949 | | | | 26,991,830 | | | | 26,331,740 | | | | 24,974,308 | |
| Adjusted diluted earnings per common share | | $ | 0.56 | | | $ | 0.48 | | | $ | 0.55 | | | $ | 0.67 | | | $ | 0.51 | | | $ | 1.59 | | | $ | 1.53 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average total stockholders' equity | | $ | 646,041 | | | $ | 652,347 | | | $ | 644,960 | | | $ | 632,126 | | | $ | 618,682 | | | $ | 647,787 | | | $ | 534,958 | |
| Average preferred stock liquidation preference | | | — | | | | — | | | | — | | | | 2,624 | | | | 9,658 | | | | — | | | | 9,658 | |
| Average total common stockholders' equity | | | 646,041 | | | | 652,347 | | | | 644,960 | | | | 629,502 | | | | 609,025 | | | | 647,787 | | | | 525,300 | |
| Average goodwill and other intangibles | | | 193,765 | | | | 196,002 | | | | 198,389 | | | | 200,754 | | | | 138,471 | | | | 196,035 | | | | 95,220 | |
| Average tangible common stockholders' equity | | $ | 452,276 | | | $ | 456,346 | | | $ | 446,571 | | | $ | 428,748 | | | $ | 470,553 | | | $ | 451,752 | | | $ | 430,080 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income available to common stockholders | | $ | 14,317 | | | $ | 12,730 | | | $ | 14,788 | | | $ | 18,085 | | | $ | 8,975 | | | $ | 41,835 | | | $ | 33,045 | |
| Average tangible common equity | | | 452,276 | | | | 456,346 | | | | 446,571 | | | | 428,748 | | | | 470,553 | | | | 451,752 | | | | 430,080 | |
| Return on average tangible common equity | | | 12.56 | % | | | 11.19 | % | | | 13.43 | % | | | 16.73 | % | | | 7.57 | % | | | 12.38 | % | | | 10.27 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted efficiency ratio: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 64,765 | | | $ | 63,419 | | | $ | 61,311 | | | $ | 64,881 | | | $ | 61,782 | | | $ | 189,495 | | | $ | 162,169 | |
| Non-interest income | | | 7,742 | | | | 7,623 | | | | 7,538 | | | | 6,794 | | | | 6,059 | | | | 22,903 | | | | 16,176 | |
| Operating revenue | | | 72,507 | | | | 71,042 | | | | 68,849 | | | | 71,675 | | | | 67,841 | | | | 212,398 | | | | 178,345 | |
| Gain on sale of subsidiary or division | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1,071 | ) |
| Adjusted operating revenue | | $ | 72,507 | | | $ | 71,042 | | | $ | 68,849 | | | $ | 71,675 | | | $ | 67,841 | | | $ | 212,398 | | | $ | 177,274 | |
| Non-interest expenses | | $ | 52,153 | | | $ | 50,704 | | | $ | 48,566 | | | $ | 46,962 | | | $ | 48,946 | | | $ | 151,423 | | | $ | 120,391 | |
| Transaction related costs | | | — | | | | — | | | | — | | | | — | | | | (5,871 | ) | | | — | | | | (6,965 | ) |
| Adjusted non-interest expenses | | $ | 52,153 | | | $ | 50,704 | | | $ | 48,566 | | | $ | 46,962 | | | $ | 43,075 | | | $ | 151,423 | | | $ | 113,426 | |
| Adjusted efficiency ratio | | | 71.93 | % | | | 71.37 | % | | | 70.54 | % | | | 65.52 | % | | | 63.49 | % | | | 71.29 | % | | | 63.98 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted net non-interest expense to average assets ratio: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest expenses | | $ | 52,153 | | | $ | 50,704 | | | $ | 48,566 | | | $ | 46,962 | | | $ | 48,946 | | | $ | 151,423 | | | $ | 120,391 | |
| Transaction related costs | | | — | | | | — | | | | — | | | | — | | | | (5,871 | ) | | | — | | | | (6,965 | ) |
| Adjusted non-interest expenses | | $ | 52,153 | | | $ | 50,704 | | | $ | 48,566 | | | $ | 46,962 | | | $ | 43,075 | | | $ | 151,423 | | | $ | 113,426 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total non-interest income | | $ | 7,742 | | | $ | 7,623 | | | $ | 7,538 | | | $ | 6,794 | | | $ | 6,059 | | | $ | 22,903 | | | $ | 16,176 | |
| Gain on sale of subsidiary or division | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1,071 | ) |
| Adjusted non-interest income | | $ | 7,742 | | | $ | 7,623 | | | $ | 7,538 | | | $ | 6,794 | | | $ | 6,059 | | | $ | 22,903 | | | $ | 15,105 | |
| Adjusted net non-interest expenses | | $ | 44,411 | | | $ | 43,081 | | | $ | 41,028 | | | $ | 40,168 | | | $ | 37,016 | | | $ | 128,520 | | | $ | 98,321 | |
| Average total assets | | $ | 4,840,540 | | | $ | 4,694,647 | | | $ | 4,501,760 | | | $ | 4,488,918 | | | $ | 4,060,560 | | | $ | 4,680,234 | | | $ | 3,702,513 | |
| Adjusted net non-interest expense to average assets ratio | | | 3.64 | % | | | 3.68 | % | | | 3.70 | % | | | 3.55 | % | | | 3.62 | % | | | 3.67 | % | | | 3.55 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total stockholders' equity | | $ | 633,693 | | | $ | 643,362 | | | $ | 646,216 | | | $ | 636,607 | | | $ | 616,641 | | | $ | 633,693 | | | $ | 616,641 | |
| Preferred stock liquidation preference | | | — | | | | — | | | | — | | | | — | | | | (9,658 | ) | | | — | | | | (9,658 | ) |
| Total common stockholders' equity | | | 633,693 | | | | 643,362 | | | | 646,216 | | | | 636,607 | | | | 606,983 | | | | 633,693 | | | | 606,983 | |
| Goodwill and other intangibles | | | (192,440 | ) | | | (194,668 | ) | | | (197,015 | ) | | | (199,417 | ) | | | (201,842 | ) | | | (192,440 | ) | | | (201,842 | ) |
| Tangible common stockholders' equity | | $ | 441,253 | | | $ | 448,694 | | | $ | 449,201 | | | $ | 437,190 | | | $ | 405,141 | | | $ | 441,253 | | | $ | 405,141 | |
| Common shares outstanding | | | 25,357,985 | | | | 26,198,308 | | | | 26,709,411 | | | | 26,949,936 | | | | 26,279,761 | | | | 25,357,985 | | | | 26,279,761 | |
| Tangible book value per share | | $ | 17.40 | | | $ | 17.13 | | | $ | 16.82 | | | $ | 16.22 | | | $ | 15.42 | | | $ | 17.40 | | | $ | 15.42 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets at end of period | | $ | 5,039,697 | | | $ | 4,783,189 | | | $ | 4,529,783 | | | $ | 4,559,779 | | | $ | 4,537,102 | | | $ | 5,039,697 | | | $ | 4,537,102 | |
| Goodwill and other intangibles | | | (192,440 | ) | | | (194,668 | ) | | | (197,015 | ) | | | (199,417 | ) | | | (201,842 | ) | | | (192,440 | ) | | | (201,842 | ) |
| Tangible assets at period end | | $ | 4,847,257 | | | $ | 4,588,521 | | | $ | 4,332,768 | | | $ | 4,360,362 | | | $ | 4,335,260 | | | $ | 4,847,257 | | | $ | 4,335,260 | |
| Tangible common stockholders' equity ratio | | | 9.10 | % | | | 9.78 | % | | | 10.37 | % | | | 10.03 | % | | | 9.35 | % | | | 9.10 | % | | | 9.35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1) Triumph uses certain non-GAAP financial measures to provide meaningful supplemental information regarding Triumph's operational performance and to enhance investors' overall understanding of such financial performance. The non-GAAP measures used by Triumph include the following:
- “Adjusted diluted earnings per common share” is defined as adjusted net income available to common stockholders divided by adjusted weighted average diluted common shares outstanding. Excluded from net income available to common stockholders are material gains and expenses related to merger and acquisition-related activities, including divestitures, net of tax. In our judgment, the adjustments made to net income available to common stockholders allow management and investors to better assess our performance in relation to our core net income by removing the volatility associated with certain acquisition-related items and other discrete items that are unrelated to our core business. Weighted average diluted common shares outstanding are adjusted as a result of changes in their dilutive properties given the gain and expense adjustments described herein.
- "Tangible common stockholders' equity" is defined as common stockholders' equity less goodwill and other intangible assets.
- "Total tangible assets" is defined as total assets less goodwill and other intangible assets.
- "Tangible book value per share" is defined as tangible common stockholders' equity divided by total common shares outstanding. This measure is important to investors interested in changes from period-to-period in book value per share exclusive of changes in intangible assets.
- "Tangible common stockholders' equity ratio" is defined as the ratio of tangible common stockholders' equity divided by total tangible assets. We believe that this measure is important to many investors in the marketplace who are interested in relative changes from period-to period in common equity and total assets, each exclusive of changes in intangible assets.
- "Return on Average Tangible Common Equity" is defined as net income available to common stockholders divided by average tangible common stockholders' equity.
- "Adjusted efficiency ratio" is defined as non-interest expenses divided by our operating revenue, which is equal to net interest income plus non-interest income. Also excluded are material gains and expenses related to merger and acquisition-related activities, including divestitures. In our judgment, the adjustments made to operating revenue and non-interest expense allow management and investors to better assess our performance in relation to our core operating revenue by removing the volatility associated with certain acquisition-related items and other discrete items that are unrelated to our core business.
- "Adjusted net non-interest expense to average total assets" is defined as non-interest expenses net of non-interest income divided by total average assets. Excluded are material gains and expenses related to merger and acquisition-related activities, including divestitures. This metric is used by our management to better assess our operating efficiency.
2) Performance ratios include discount accretion on purchased loans for the periods presented as follows:
| | | For the Three Months Ended | | | For the Nine Months Ended | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | | | September 30, | | | September 30, | |
| (Dollars in thousands) | | 2019 | | | 2019 | | | 2019 | | | 2018 | | | 2018 | | | 2019 | | | 2018 | |
| Loan discount accretion | | $ | 1,159 | | | $ | 1,297 | | | $ | 1,557 | | | $ | 1,411 | | | $ | 1,271 | | | $ | 4,013 | | | $ | 6,884 | |
3) Asset quality ratios exclude loans held for sale, except for non-performing assets to total assets.
4) Current quarter ratios are preliminary.
Source: Triumph Bancorp, Inc.
Investor Relations:
Luke Wyse
Senior Vice President, Finance & Investor Relations
lwyse@tbkbank.com
214-365-6936
Media Contact:
Amanda Tavackoli
Senior Vice President, Marketing & Communication
atavackoli@tbkbank.com
214-365-6930
