The following excerpt is from the company's SEC filing.
DALLAS – April 20, 2022 (GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”) today announced earnings and operating results for the first quarter of 2022.
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.
2022 First Quarter Highlights
For the first quarter of 2022, net income to common shareholders was $23.5 million, and diluted earnings per share were $0.93.
Net inte
rest income was $100.1 million.
Non-interest income was $11.1 million.
Non-interest expense was $78.6 million.
Net interest margin was 7.68%. Yield on loans and the average cost of our total deposits were 8.60% and 0.14%, respectively.
Credit loss expense for the quarter ended March 31, 2022 was $0.5 million.
Net charge-offs were $1.5 million, or 0.03% of average loans, for the quarter.
The total dollar value of invoices purchased by Triumph Business Capital was $4.042 billion with an average invoice size of $2,520. The transportation average invoice size for the quarter was $2,401.
TriumphPay processed 4.0 million invoices paying carriers a total of $5.701 billion.
We repurchased 14,810 shares into treasury stock under our stock repurchase program at an average price of $88.81, for a total of $1.3 million, under the $50.0 million stock repurchase program authorized by our board of directors on February 7, 2022.
We classified certain non-transportation factored receivables, and their related customer reserves, (the "Factored Receivable Disposal Group") as held for sale on the unaudited March 31, 2022 Consolidated Balance Sheet. The Factored Receivable Disposal Group was classified as held for sale at cost with no impact to earnings except for the reversal of the allowance for credit loss associated with the factored receivables. As a result, factored receivables totaling $80.8 million and customer reserves totaling $10.4 million were included in assets held for sale and deposits held for sale, respectively, at March 31, 2022.
We classified the gross assets and liabilities of 15 branches primarily located in rural eastern Colorado and western Kansas (the “Branch Disposal Group”) as held for sale on the unaudited March 31, 2022 Consolidated Balance Sheet. The Branch Disposal Group was classified as held for sale at cost with no impact to earnings except for the reversal of the allowance for credit loss associated with the branch loans. Loans totaling $159.2 million and deposits totaling $367.3 million were included in assets held for sale and deposits held for sale, respectively, at March 31, 2022.
Total loans held for investment decreased $143.5 million, or 2.9%, during the first quarter to $4.724 billion at March 31, 2022. Average loans held for investment for the quarter decreased $38.5 million, or 0.8%, to $4.805 billion.
Total deposits were $4.332 billion at March 31, 2022, a decrease of $314.9 million, or 6.8%, in the first quarter of 2022. Non-interest-bearing deposits accounted for 43% of total deposits and non-time deposits accounted for 88% of total deposits at March 31, 2022.
The decline in loans held for investment and deposits was driven by the classification of a portion of such assets and deposits to held for sale at March 31, 2022 as previously discussed.
Asset Quality and Allowance for Credit Loss
Our nonperforming assets ratio at March 31, 2022 was 0.87%. Approximately 2 basis points of this ratio at March 31, 2022 consisted of $1.2 million of the acquired Over-Formula Advance portfolio which represents the portion that is not covered by CVLG's indemnification. An additional 32 basis points of this ratio at March 31, 2022 consisted of $19.4 million of the Misdirected Payments. Over-Formula Advances and Misdirected Payments are discussed in greater detail below.
Our past-due loan ratio at March 31, 2022 was 2.73%. Approximately 20 basis points of this ratio at March 31, 2022 consisted of $9.6 million of past due factored receivables related to the Over-Formula Advance portfolio. An additional 41 basis points of this ratio at March 31, 2022 consisted of the $19.4 million of Misdirected Payments, as discussed below.
Our ACL as a percentage of loans held for investment increased 1 basis point during the quarter to 0.88% at March 31, 2022.
Items related to our July 2020 acquisition of TFS
As disclosed on our SEC Forms 8-K filed on July 8, 2020 and September 23, 2020, we acquired the transportation factoring assets of TFS, a wholly owned subsidiary of Covenant Logistics Group, Inc. ("CVLG"), and subsequently amended the terms of that transaction. There were no material developments related to that transaction that impacted our operating results for the three months ended March 31, 2022.
At March 31, 2022, the carrying value of the acquired over-formula advances was $9.6 million, the total reserve on acquired over-formula advances was $9.6 million and the balance of our indemnification asset, the value of the payment that would be due to us from CVLG in the event that these over-advances are charged off, was $4.6 million.
As of March 31, 2022 we carried a separate $19.4 million receivable (the “Misdirected Payments”) payable by the United States Postal Service (“USPS”) arising from accounts factored to the largest over-formula advance 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 have commenced litigation in the United States Court of Federal Claims against the USPS seeking a ruling that the USPS was obligated to make the payments represented by this receivable directly to us. Based on our legal analysis and discussions with our counsel advising us on this matter, we continue to believe it is probable that we will prevail in such action and that the USPS will have the capacity to make payment on such receivable. Consequently, we have not reserved for such balance as of March 31, 2022. The full amount of such receivable is reflected in non-performing and past due factored receivables as of March 31, 2022 in accordance with our policy. As of March 31, 2022, the entire $19.4 million Misdirected Payments amount was greater than 90 days past due.
Conference Call Information
Aaron P. Graft, Vice Chairman and CEO and Brad Voss, CFO will review the financial results in a conference call for investors and analysts beginning at 7:00 a.m. Central Time on Thursday, April 21, 2022.
To participate in the live conference call, please dial 1-844-200-6205 (International: +1-929-526-1599) and access code
026223
. 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/mediaframe/webcast.html?webcastid=L79lY4Dy
. 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, offering a diversified line of payments, factoring, and banking services.
Forward-Looking Statements
This press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; the impact of COVID-19 on our business, including the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on the United States economy (including, without limitation, the CARES Act), and the resulting effect of all of such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; changes in management personnel; interest rate risk; concentration of our products and services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; risks related to the integration of acquired businesses, including our acquisition of HubTran Inc. and developments related to our acquisition of Transport Financial Solutions and the related over-formula advances, and any future acquisitions; our ability to successfully identify and address the risks associated with our possible future acquisitions, and the risks that our prior and possible future acquisitions make it more difficult for investors to evaluate our business, financial condition and results of operations, and impairs our ability to accurately forecast our future performance; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of FDIC, insurance and other coverages; failure to receive regulatory approval for future acquisitions; and increases in our capital requirements.
While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 14, 2022.
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
(Dollars in thousands)
December 31,
September 30,
June 30,
Financial Highlights:
Total assets
6,076,434
5,956,250
6,024,535
6,015,877
6,099,628
Loans held for investment
4,724,078
4,867,572
4,782,730
4,831,215
5,084,512
Deposits
4,331,786
4,646,679
4,822,575
4,725,450
4,789,665
Net income available to common stockholders
23,528
25,839
23,627
27,180
33,122
Performance Ratios - Annualized:
Return on average assets
Return on average total equity
11.20
12.41
11.85
14.27
18.42
Return on average common equity
11.41
12.71
12.13
14.70
19.14
Return on average tangible common equity
17.02
19.41
19.21
20.92
26.19
Cost of interest bearing deposits
Cost of total deposits
Cost of total funds
Net non-interest expense to average assets
Adjusted net non-interest expense to average assets
Efficiency ratio
70.65
70.16
70.13
67.96
62.57
Adjusted efficiency ratio
65.09
Asset Quality:
Past due to total loans
Non-performing loans to total loans
Non-performing assets to total assets
ACL to non-performing loans
93.62
91.20
95.75
88.92
80.87
ACL to total loans
Net charge-offs to average loans
Capital:
Tier 1 capital to average assets
11.82
11.11
10.43
10.89
Tier 1 capital to risk-weighted assets
11.96
11.51
11.06
10.33
11.28
Common equity tier 1 capital to risk-weighted assets
10.40
Total capital to risk-weighted assets
14.53
14.10
13.69
12.65
13.58
Total equity to total assets
14.59
14.42
13.62
13.17
12.53
Tangible common stockholders' equity to tangible assets
Per Share Amounts:
Book value per share
33.45
32.35
30.87
29.76
28.90
Tangible book value per share
22.75
21.34
19.73
18.35
Basic earnings per common share
Diluted earnings per common share
Adjusted diluted earnings per common share
Shares outstanding end of period
25,161,690
25,158,879
25,123,342
25,109,703
24,882,929
Unaudited consolidated balance sheet as of:
ASSETS
Total cash and cash equivalents
413,704
383,178
532,764
444,439
380,811
Securities - available for sale
191,440
182,426
164,816
193,627
205,330
Securities - held to maturity, net
4,404
4,947
5,488
5,658
5,828
Equity securities
5,085
5,504
5,623
5,854
5,826
Loans held for sale
7,330
26,437
31,136
22,663
Allowance for credit losses
(41,553)
(42,213)
(41,017)
(45,694)
(48,024)
Loans, net
4,682,525
4,825,359
4,741,713
4,785,521
5,036,488
Assets held for sale
260,085
FHLB and other restricted stock
12,196
10,146
4,901
8,096
9,807
Premises and equipment, net
91,725
105,729
104,311
106,720
105,390
Other real estate owned ("OREO"), net
1,013
1,421
Goodwill and intangible assets, net
269,119
276,856
280,055
286,567
188,006
Bank-owned life insurance
41,141
40,993
41,540
41,912
41,805
Deferred tax asset, net
10,174
10,023
1,260
Indemnification asset
4,582
4,786
5,246
Other assets
89,264
98,449
111,208
100,088
89,747
LIABILITIES
Non-interest bearing deposits
1,859,376
1,925,370
2,020,984
1,803,552
1,637,653
Interest bearing deposits
2,472,410
2,721,309
2,801,591
2,921,898
3,152,012
Deposits held for sale
377,698
Customer repurchase agreements
2,868
2,103
11,990
9,243
2,668
Federal Home Loan Bank advances
230,000
180,000
130,000
Payment Protection Program Liquidity Facility
27,144
97,554
139,673
158,796
Subordinated notes
107,169
106,957
106,755
87,620
87,564
Junior subordinated debentures
40,737
40,602
40,467
40,333
40,201
Deferred tax liability, net
3,333
Other liabilities
99,511
93,901
93,538
87,837
76,730
Total liabilities
5,189,769
5,097,386
5,203,861
5,223,489
5,335,624
EQUITY
Preferred Stock
45,000
Common stock
Additional paid-in-capital
516,551
510,939
499,282
494,224
490,699
Treasury stock, at cost
(106,105)
(104,743)
(104,600)
(104,486)
(103,059)
Retained earnings
422,879
399,351
373,512
349,885
322,705
Accumulated other comprehensive income (loss)
8,057
8,034
7,198
7,483
8,379
Total stockholders' equity
886,665
858,864
820,674
792,388
764,004
Total liabilities and equity
Unaudited consolidated statement of income:
For the Three Months Ended
Interest income:
Loans, including fees
40,847
43,979
44,882
45,988
48,706
Factored receivables, including fees
61,206
62,196
50,516
47,328
37,795
1,178
1,438
1,126
1,187
1,650
Cash deposits
Total interest income
103,435
107,779
96,735
94,688
88,353
Interest expense:
1,561
1,907
1,948
2,470
3,372
1,299
1,297
2,449
1,350
1,349
Other borrowings
Total interest expense
3,356
3,722
4,964
4,406
5,333
100,079
104,057
91,771
90,282
83,020
Credit loss expense (benefit)
2,008
(1,187)
(1,806)
(7,845)
Net interest income after credit loss expense (benefit)
99,578
102,049
92,958
92,088
90,865
Non-interest income:
Service charges on deposits
1,963
2,050
2,030
1,857
1,787
Card income
2,011
2,144
2,225
1,972
Net OREO gains (losses) and valuation adjustments
Net gains (losses) on sale of securities
Fee income
5,703
5,711
5,198
4,470
2,249
Insurance commissions
1,672
1,138
1,231
1,272
1,486
2,861
1,457
4,358
6,877
Total non-interest income
11,121
14,259
12,055
13,896
14,291
Non-interest expense:
Salaries and employee benefits
46,284
52,544
43,769
41,658
35,980
Occupancy, furniture and equipment
6,436
6,194
6,388
6,112
5,779
FDIC insurance and other regulatory assessments
Professional fees
3,659
2,633
2,362
5,052
2,545
Amortization of intangible assets
3,108
3,199
3,274
2,428
1,975
Advertising and promotion
1,202
1,640
1,403
1,241
Communications and technology
9,112
7,844
7,090
6,028
5,900
8,352
8,662
8,174
6,846
Total non-interest expense
78,564
83,004
72,813
70,798
60,892
Net income before income tax
32,135
33,304
32,200
35,186
44,264
Income tax expense
7,806
6,664
7,771
7,204
10,341
24,329
26,640
24,429
27,982
33,923
Dividends on preferred stock
Earnings per share:
Net income to common stockholders
Weighted average common shares outstanding
24,800,771
24,786,720
24,759,419
24,724,128
24,675,109
Net income to common stockholders - diluted
Dilutive effects of:
Assumed exercises of stock options
107,359
124,462
121,110
134,358
130,016
Restricted stock awards
237,305
236,251
141,204
139,345
169,514
Restricted stock units
86,099
87,605
74,268
73,155
66,714
Performance stock units - market based
139,563
150,969
131,346
134,313
128,167
Performance stock units - performance based
Employee stock purchase plan
4,726
3,708
1,418
Weighted average shares outstanding - diluted
25,371,868
25,390,733
25,227,963
25,209,007
25,170,938
Shares that were not considered in computing diluted earnings per common share because they were antidilutive or have not met the thresholds to be considered in the dilutive calculation are as follows:
Stock options
12,911
16,939
8,463
15,000
12,020
13,520
258,635
259,383
265,625
256,625
Loans held for investment summarized as of:
Commercial real estate
625,763
632,775
630,106
701,576
784,110
Construction, land development, land
119,560
123,464
171,814
185,444
223,841
1-4 family residential properties
117,534
123,115
127,073
135,288
142,859
Farmland
17,910
77,394
82,990
91,122
97,835
1,375,044
1,430,429
1,398,497
1,453,583
1,581,125
1,764,590
1,699,537
1,607,028
1,398,299
1,208,718
9,276
10,885
12,677
12,389
14,332
Mortgage warehouse
694,401
769,973
752,545
853,514
1,031,692
Our banking loan 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.
Banking loans held for investment are further summarized below:
Commercial - General
286,936
295,662
289,242
290,562
288,458
Commercial - Paycheck Protection Program
12,090
27,197
87,413
135,307
237,299
Commercial - Agriculture
15,887
70,127
77,263
76,346
83,859
Commercial - Equipment
612,277
621,437
588,105
604,396
623,248
Commercial - Asset-based lending
284,808
281,659
213,927
181,394
188,825
Commercial - Liquid Credit
163,046
134,347
142,547
165,578
159,436
Mortgage Warehouse
Total banking loans held for investment
2,959,488
3,168,035
3,175,702
3,432,916
3,875,794
The following table presents the Company’s operating segments:
Three months ended March 31, 2022
Factoring
Corporate
42,183
56,374
4,832
Intersegment interest allocations
(1,775)
1,603
1,753
Net interest income (expense)
42,437
54,599
4,750
(1,707)
(2,870)
1,949
1,068
45,307
52,650
(2,775)
Noninterest income
5,995
1,871
3,242
Noninterest expense
41,708
21,389
14,333
1,134
Operating income (loss)
9,594
33,132
(6,695)
(3,896)
Three months ended December 31, 2021
45,534
58,042
4,154
2,272
(2,178)
1,980
1,742
45,826
55,864
4,060
(1,693)
1,600
45,655
54,264
4,170
(2,040)
8,308
2,295
3,209
46,617
22,335
13,376
7,346
34,224
(5,997)
(2,269)
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:
Factored receivable period end balance
1,666,530,000
1,546,361,000
1,479,989,000
1,284,314,000
1,118,988,000
Yield on average receivable balance
14.16
13.75
14.99
13.85
Current quarter charge-off rate
Factored receivables - transportation concentration
Interest income, including fees
56,374,000
58,042,000
47,222,000
44,653,000
35,824,000
1,871,000
2,295,000
1,557,000
2,742,000
1,757,000
Factored receivable total revenue
58,245,000
60,337,000
48,779,000
47,395,000
37,581,000
Average net funds employed
1,451,984,000
1,442,551,000
1,235,610,000
1,072,405,000
936,528,000
Yield on average net funds employed
16.27
16.59
15.66
17.73
Accounts receivable purchased
4,041,883,000
4,032,585,000
3,531,811,000
3,068,262,000
2,492,468,000
Number of invoices purchased
1,604,012
1,669,387
1,535,321
1,401,695
1,188,678
Average invoice size
2,520
2,416
2,300
2,189
2,097
Average invoice size - transportation
2,401
2,291
2,195
1,974
Average invoice size - non-transportation
5,495
5,648
4,944
4,701
4,775
Metrics above include assets and deposits held for sale.
March 31, 2021 includes a $41.3 million charge-off related to the TFS acquisition, which contributed approximately 3.94% to the net charge-off rate for the quarter.
Total factoring segment non-interest income was $6.4 million for the three months ended March 31, 2021.
March 31, 2021 non-interest income used to calculate yield on average net funds employed excludes a $4.7 million gain on our indemnification asset.
Information pertaining to our payments segment, which includes only our TriumphPay division, summarized as of and for the quarters ended:
178,879,000
153,176,000
127,039,000
113,985,000
89,730,000
4,832,000
4,154,000
3,295,000
2,675,000
1,969,000
3,242,000
3,209,000
3,086,000
1,083,000
73,000
Total revenue
8,074,000
7,363,000
6,381,000
3,758,000
2,042,000
Pre-tax operating income (loss)
(6,695,000)
(5,997,000)
(5,184,000)
(7,441,000)
(2,552,000)
82,000
94,000
111,000
139,000
167,000
Depreciation and software amortization expense
108,000
77,000
65,000
Intangible amortization expense
1,490,000
1,489,000
497,000
Earnings (losses) before interest, taxes, depreciation, and amortization
(5,015,000)
(4,357,000)
(3,506,000)
(6,737,000)
(2,320,000)
Transaction costs
2,992,000
Adjusted earnings (losses) before interest, taxes, depreciation, and amortization
(3,745,000)
Number of invoices processed
3,978,174
4,027,680
3,760,948
3,165,119
2,529,673
Amount of payments processed
5,700,849,000
5,242,051,000
4,191,424,000
3,426,808,000
2,301,632,000
Earnings (losses) before interest, taxes, depreciation, and amortization ("EBITDA") is a non-GAAP financial measure used as a supplemental measure to evaluate the performance of our Payments segment. Adjusted EBITDA excludes material gains and expenses related to merger and acquisition-related activities and is a non-GAAP financial measure used to provide meaningful supplemental information regarding the segment's operational performance and to enhance investors' overall understanding of such financial performance by removing the volatility associated with certain acquisition-related items that are unrelated to our core business.
Deposits summarized as of:
Non-interest bearing demand
Interest bearing demand
782,859
830,019
795,234
760,874
729,364
Individual retirement accounts
70,311
83,410
86,012
87,052
89,748
Money market
526,324
520,358
472,242
395,035
402,070
Savings
448,878
504,146
483,946
474,163
464,035
Certificates of deposit
431,243
533,206
574,539
612,730
740,694
Brokered time deposits
2,752
40,125
117,064
306,975
516,006
Other brokered deposits
210,043
210,045
272,554
285,069
210,095
Net interest margin summarized for the three months ended:
Interest earning assets:
Interest earning cash balances
273,742
361,059
Taxable securities
170,051
1,083
142,658
1,266
Tax-exempt securities
14,789
26,691
9,993
5,170
4,813,857
102,053
4,851,171
106,175
Total interest earning assets
5,282,432
5,386,749
Non-interest earning assets:
560,887
593,013
5,843,319
5,979,762
Interest bearing liabilities:
Deposits:
833,297
825,784
82,692
84,966
538,553
486,939
509,728
493,796
518,399
550,746
1,668
33,263
231,378
(0.08
299,290
Total interest bearing deposits
2,715,715
2,774,784
63,889
38,967
107,039
106,847
40,661
40,530
5,090
62,143
Total interest bearing liabilities
2,932,394
3,023,271
Non-interest bearing liabilities and equity:
Non-interest bearing demand deposits
1,938,667
2,022,973
91,309
81,835
880,949
851,683
Interest spread
(1) Loan balance totals include respective nonaccrual assets.
(2) Net interest spread is the yield on average interest earning assets less the rate on interest bearing liabilities.
(3) Net interest margin is the ratio of net interest income to average interest earning assets.
(4) Average rates have been annualized.
Additional information pertaining to our loan portfolio, including loans held for investment and loans held for sale, summarized for the quarters ended:
Average Banking loans
3,032,745
3,112,072
3,299,152
3,516,747
3,722,895
Average Factoring receivables
1,614,462
1,597,091
1,362,856
1,195,209
1,048,968
Average Payments receivables
166,650
142,008
115,401
102,094
76,412
Average total loans
4,777,409
4,814,050
4,848,275
Banking yield
Factoring yield
Payments yield
11.76
11.61
11.33
10.51
10.45
Total loan yield
Metrics and non-GAAP financial reconciliation:
(Dollars in thousands,
except per share amounts)
2,992
Tax effect of adjustments
Adjusted net income available to common stockholders - diluted
29,457
Average total stockholders' equity
818,022
786,404
746,849
Average preferred stock liquidation preference
(45,000)
Average total common stockholders' equity
835,949
806,683
773,022
741,404
701,849
Average goodwill and other intangibles
(275,378)
(278,528)
(284,970)
(220,310)
(188,980)
Average tangible common stockholders' equity
560,571
528,155
488,052
521,094
512,869
Average tangible common equity
Operating revenue
111,200
118,316
103,826
104,178
97,311
Non-interest expenses
(2,992)
Adjusted non-interest expenses
67,806
Adjusted net non-interest expense to average assets ratio:
Adjusted net non-interest expenses
67,443
68,745
60,758
53,910
46,601
Average total assets
6,020,631
6,093,805
6,013,668
Preferred stock liquidation preference
Total common stockholders' equity
841,665
813,864
775,674
747,388
719,004
Goodwill and other intangibles
(269,119)
(276,856)
(280,055)
(286,567)
(188,006)
572,546
537,008
495,619
460,821
530,998
Common shares outstanding
Total assets at end of period
Tangible assets at period end
5,807,315
5,679,394
5,744,480
5,729,310
5,911,622
Tangible common stockholders' equity ratio
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.
Performance ratios include discount accretion on purchased loans for the periods presented as follows:
Loan discount accretion
1,536
1,674
1,953
2,161
3,501
Asset quality ratios exclude loans held for sale, except for non-performing assets to total assets.
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, Director of Corporate Communication
atavackoli@tbkbank.com
214-365-6930
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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