Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”)
today announced earnings and operating results for the first
quarter of 2021.
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.
2021 First Quarter Highlights
- For the first quarter of 2021, net
income to common shareholders was $33.1 million, and diluted
earnings per share were $1.32.
- Net interest income was $83.0
million.
- Net interest margin was 6.06%. Yield
on loans and the average cost of our total deposits were 7.24% and
0.28%, respectively.
- Non-interest income was $14.3 million,
including a $4.7 million gain on indemnification asset related to
the Transport Financial Solutions ("TFS") acquisition as described
below.
- Non-interest expense was $60.9
million.
- Credit loss expense for the quarter
ended March 31, 2021 was a benefit of $7.8 million. Components
of our credit loss expense included:
- A $9.5 million reduction in current
expected losses in the loan portfolio and off balance sheet loan
commitments primarily due to improvements in our macroeconomic
forecasts.
- $1.9 million expense due to net
increases in specific reserves, including $2.9 million expense
related to the TFS acquisition as discussed below.
- Net charge-offs were $41.3 million, or
0.85% of average loans, for the quarter including a fully reserved
$41.3 million charge-off related to the TFS acquisition; $35.6
million of which was indemnified and reimbursed to us by Covenant
Logistics Group, Inc. as discussed below.
- The total dollar value of invoices
purchased by Triumph Business Capital was $2.492 billion with an
average invoice size of $2,097. The transportation average invoice
size for the quarter was $1,974.
- TriumphPay processed 2,529,673
invoices paying carriers a total of $2.302 billion.
- On March 31, 2021, we, through
TriumphPay, a division of our wholly-owned subsidiary TBK Bank,
SSB, entered into a definitive agreement to acquire HubTran, Inc.,
a cloud-based provider of automation software for the
transportation industry's back-office, for $97 million in cash
subject to customary purchase price adjustments and closing
conditions. The acquisition is subject to customary closing
conditions, including receipt of regulatory approval, and is
expected to close in the second quarter of 2021.
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.
Developments related to that transaction impacted our operating
results for the three months ended March 31, 2021 as follows:
- During the quarter, new adverse
developments with the largest of the three Over-Formula Advance
clients caused us to charge-off the entire $41.3 million net
Over-Formula Advance amount due from that client. 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 amended terms of the
transaction, CVLG reimbursed us for $35.6 million of this
charge-off by drawing on its secured line of credit which is
reflected on our March 31, 2021 Consolidated Balance Sheet as a
performing equipment loan held for investment.
- Given separate developments with the
other two Over-Formula Advance clients, we reserved an additional
$2.9 million reflected in credit loss expense during the three
months ended March 31, 2021. At quarter end, our entire remaining
over formula advance position was down from $62.1 million at
December 31, 2020 to $10.6 million at March 31, 2021 and the $10.6
million balance at March 31, 2021 was fully reserved. The $2.9
million 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 $4.7 million gain on the
indemnification asset which was recorded through non-interest
income.
- The net pretax income impact of the
adjustments to credit loss expense and indemnification asset
associated with the three Over-Formula Advance clients was pretax
income of $1.8 million.
At March 31, 2021, the carrying value of the acquired
over-formula advances was $10.6 million, the total reserve on
acquired over-formula advances was $10.6 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 $5.2 million.
As of March 31, 2021 we carried a separate $19.2 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. In addition to commencing litigation against
such customer, we have also filed a declaratory judgment action in
United States Federal District Court for the Southern District of
Florida 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 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, 2021. The full amount of such receivable is
reflected in non-performing and past due factored receivables as of
March 31, 2021 in accordance with our policy. As of March 31, 2021,
the entire $19.2 million Misdirected Payments amount was greater
than 90 days past due.
Balance Sheet
Total loans held for investment increased $87.7 million, or
1.8%, during the first quarter to $5.085 billion at March 31,
2021. Average loans held for investment for the quarter decreased
$24.7 million, or 0.5%, to $4.834 billion. The commercial finance
portfolio increased $146.4 million, or 7.8%, to $2.021 billion, the
national lending portfolio decreased $30.5 million, or 2.5%, to
$1.191 billion, and the community banking portfolio decreased $28.2
million, or 1.5%, to $1.873 billion during the quarter.
Total deposits were $4.790 billion at March 31, 2021, an
increase of $73.1 million, or 1.5%, in the first quarter of 2021.
Non-interest-bearing deposits accounted for 34% of total deposits
and non-time deposits accounted for 72% of total deposits at
March 31, 2021.
Asset Quality and Allowance for Credit Loss
Our nonperforming assets ratio at March 31, 2021 was 1.15%.
Approximately 2 basis points of this ratio at March 31, 2021
consisted of $1.4 million of the acquired Over-Formula Advance
portfolio which represents the portion that is not covered by
CVLG's indemnification. An additional 38 basis points of this ratio
at March 31, 2021 consisted of $19.2 million of the
Misdirected Payments, as discussed above.
Our past-due loan ratio at March 31, 2021 was 1.96%.
Approximately 21 basis points of this ratio at March 31, 2021
consisted of $10.6 million of past due factored receivables related
to the Over-Formula Advance portfolio. An additional 38 basis
points of this ratio at March 31, 2021 consisted of the $19.2
million of Misdirected Payments, as discussed above.
We recorded total net charge-offs of $41.3 million, or 0.85% of
average loans, for the quarter ended March 31, 2021. Net
charge-offs were impacted by items related to our TFS acquisition,
as discussed above.
Our ACL as a percentage of loans held for investment decreased
98 basis points during the quarter to 0.94% at March 31, 2021.
In addition to the impact of an improved macroeconomic forecast,
this decrease reflects a $41.3 million charge-off during the period
related to the TFS acquisition as discussed above. The recorded
reserves on the over-formula advance portfolio acquired from TFS
constitute 21 basis points of the ACL ratio at March 31, 2021.
CARES Act and Paycheck Protection Program
As of March 31, 2021, our balance sheet reflected deferrals
on outstanding loan balances of $85.3 million to assist customers
impacted by COVID-19. Modifications related to the COVID-19
pandemic and qualifying under the provisions of Section 4013 of the
CARES Act are not considered troubled debt restructurings. As of
March 31, 2021, these deferred balances carried accrued
interest of $0.5 million.
During the three months ended March 31, 2021, we originated
$83.5 million of PPP loans. As of March 31, 2021, we carried
2,670 PPP loans representing a balance of $237.3 million classified
as commercial loans. We recognized $1.1 million in fees from the
SBA on PPP loans during the three months ended March 31, 2021 and
carry $6.6 million of deferred fees on PPP loans at quarter end.
The remaining fees will be amortized over the respective lives of
the loans.
Conference Call Information
Aaron P. Graft, Vice Chairman and CEO and Bryce Fowler, CFO will
review the quarterly results in a conference call for investors and
analysts beginning at 7:00 a.m. Central Time on Thursday, April 22,
2021. Todd Ritterbusch, Chief Lending Officer, and Geoff Brenner,
Triumph Business Capital CEO, 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/tbk210422.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; 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 pending 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 12, 2021.
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) |
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Financial Highlights: |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
6,099,628 |
|
|
$ |
5,935,791 |
|
|
$ |
5,836,787 |
|
|
$ |
5,617,493 |
|
|
$ |
5,353,729 |
|
Loans held for investment |
$ |
5,084,512 |
|
|
$ |
4,996,776 |
|
|
$ |
4,852,911 |
|
|
$ |
4,393,311 |
|
|
$ |
4,320,548 |
|
Deposits |
$ |
4,789,665 |
|
|
$ |
4,716,600 |
|
|
$ |
4,248,101 |
|
|
$ |
4,062,332 |
|
|
$ |
3,682,015 |
|
Net income available to common stockholders |
$ |
33,122 |
|
|
$ |
31,328 |
|
|
$ |
22,005 |
|
|
$ |
13,440 |
|
|
$ |
(4,450 |
) |
|
|
|
|
|
|
|
|
|
|
Performance Ratios -
Annualized: |
|
|
|
|
|
|
|
|
|
Return on average assets |
2.29 |
% |
|
2.21 |
% |
|
1.65 |
% |
|
0.99 |
% |
|
(0.36 |
%) |
Return on average total equity |
18.42 |
% |
|
17.73 |
% |
|
13.24 |
% |
|
8.86 |
% |
|
(2.85 |
%) |
Return on average common equity |
19.14 |
% |
|
18.44 |
% |
|
13.61 |
% |
|
8.94 |
% |
|
(2.85 |
%) |
Return on average tangible common equity (1) |
26.19 |
% |
|
25.70 |
% |
|
19.43 |
% |
|
12.96 |
% |
|
(4.09 |
%) |
Yield on loans(2) |
7.24 |
% |
|
7.20 |
% |
|
7.05 |
% |
|
6.52 |
% |
|
7.22 |
% |
Cost of interest bearing deposits |
0.41 |
% |
|
0.54 |
% |
|
0.79 |
% |
|
1.08 |
% |
|
1.34 |
% |
Cost of total deposits |
0.28 |
% |
|
0.38 |
% |
|
0.56 |
% |
|
0.79 |
% |
|
1.05 |
% |
Cost of total funds |
0.42 |
% |
|
0.51 |
% |
|
0.67 |
% |
|
0.85 |
% |
|
1.23 |
% |
Net interest margin(2) |
6.06 |
% |
|
6.20 |
% |
|
5.83 |
% |
|
5.11 |
% |
|
5.63 |
% |
Net non-interest expense to average assets |
3.14 |
% |
|
2.54 |
% |
|
3.23 |
% |
|
2.40 |
% |
|
3.88 |
% |
Adjusted net non-interest expense to average assets (1) |
3.14 |
% |
|
2.54 |
% |
|
3.17 |
% |
|
3.11 |
% |
|
3.88 |
% |
Efficiency ratio |
62.57 |
% |
|
55.95 |
% |
|
65.15 |
% |
|
62.56 |
% |
|
78.24 |
% |
Adjusted efficiency ratio (1) |
62.57 |
% |
|
55.95 |
% |
|
64.18 |
% |
|
70.75 |
% |
|
78.24 |
% |
|
|
|
|
|
|
|
|
|
|
Asset Quality:(3) |
|
|
|
|
|
|
|
|
|
Past due to total loans |
1.96 |
% |
|
3.22 |
% |
|
2.40 |
% |
|
1.50 |
% |
|
1.99 |
% |
Non-performing loans to total loans |
1.17 |
% |
|
1.16 |
% |
|
1.17 |
% |
|
1.27 |
% |
|
1.26 |
% |
Non-performing assets to total assets |
1.15 |
% |
|
1.15 |
% |
|
1.52 |
% |
|
1.20 |
% |
|
1.09 |
% |
ACL to non-performing loans |
80.87 |
% |
|
164.98 |
% |
|
159.67 |
% |
|
97.66 |
% |
|
82.37 |
% |
ACL to total loans |
0.94 |
% |
|
1.92 |
% |
|
1.88 |
% |
|
1.24 |
% |
|
1.04 |
% |
Net charge-offs to average loans |
0.85 |
% |
|
0.03 |
% |
|
0.02 |
% |
|
0.02 |
% |
|
0.04 |
% |
|
|
|
|
|
|
|
|
|
|
Capital: |
|
|
|
|
|
|
|
|
|
Tier 1 capital to average assets(4) |
10.89 |
% |
|
10.80 |
% |
|
10.75 |
% |
|
9.98 |
% |
|
9.62 |
% |
Tier 1 capital to risk-weighted assets(4) |
11.28 |
% |
|
10.60 |
% |
|
10.32 |
% |
|
10.57 |
% |
|
9.03 |
% |
Common equity tier 1 capital to risk-weighted assets(4) |
9.72 |
% |
|
9.05 |
% |
|
8.72 |
% |
|
8.84 |
% |
|
8.24 |
% |
Total capital to risk-weighted assets |
13.58 |
% |
|
13.03 |
% |
|
12.94 |
% |
|
13.44 |
% |
|
11.63 |
% |
Total equity to total assets |
12.53 |
% |
|
12.24 |
% |
|
11.89 |
% |
|
11.69 |
% |
|
11.01 |
% |
Tangible common stockholders' equity to tangible assets(1) |
8.98 |
% |
|
8.56 |
% |
|
8.09 |
% |
|
7.84 |
% |
|
7.77 |
% |
|
|
|
|
|
|
|
|
|
|
Per Share Amounts: |
|
|
|
|
|
|
|
|
|
Book value per share |
$ |
28.90 |
|
|
$ |
27.42 |
|
|
$ |
26.11 |
|
|
$ |
25.28 |
|
|
$ |
24.45 |
|
Tangible book value per share (1) |
$ |
21.34 |
|
|
$ |
19.78 |
|
|
$ |
18.38 |
|
|
$ |
17.59 |
|
|
$ |
16.64 |
|
Basic earnings (loss) per common share |
$ |
1.34 |
|
|
$ |
1.27 |
|
|
$ |
0.89 |
|
|
$ |
0.56 |
|
|
$ |
(0.18 |
) |
Diluted earnings (loss) per common share |
$ |
1.32 |
|
|
$ |
1.25 |
|
|
$ |
0.89 |
|
|
$ |
0.56 |
|
|
$ |
(0.18 |
) |
Adjusted diluted earnings per common share(1) |
$ |
1.32 |
|
|
$ |
1.25 |
|
|
$ |
0.91 |
|
|
$ |
0.25 |
|
|
$ |
(0.18 |
) |
Shares outstanding end of period |
24,882,929 |
|
|
24,868,218 |
|
|
24,851,601 |
|
|
24,202,686 |
|
|
24,101,120 |
|
Unaudited consolidated balance sheet as of:
(Dollars in thousands) |
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
ASSETS |
|
|
|
|
|
|
|
|
|
Total cash and cash
equivalents |
$ |
380,811 |
|
|
$ |
314,393 |
|
|
$ |
288,278 |
|
|
$ |
437,064 |
|
|
$ |
208,414 |
|
Securities - available for
sale |
205,330 |
|
|
224,310 |
|
|
242,802 |
|
|
331,126 |
|
|
302,122 |
|
Securities - held to maturity,
net |
5,828 |
|
|
5,919 |
|
|
6,096 |
|
|
6,285 |
|
|
8,217 |
|
Equity securities |
5,826 |
|
|
5,826 |
|
|
6,040 |
|
|
6,411 |
|
|
5,678 |
|
Loans held for sale |
22,663 |
|
|
24,546 |
|
|
36,716 |
|
|
50,382 |
|
|
4,431 |
|
Loans held for investment |
5,084,512 |
|
|
4,996,776 |
|
|
4,852,911 |
|
|
4,393,311 |
|
|
4,320,548 |
|
Allowance for credit
losses |
(48,024 |
) |
|
(95,739 |
) |
|
(90,995 |
) |
|
(54,613 |
) |
|
(44,732 |
) |
Loans, net |
5,036,488 |
|
|
4,901,037 |
|
|
4,761,916 |
|
|
4,338,698 |
|
|
4,275,816 |
|
Assets held for sale |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
97,895 |
|
FHLB and other restricted
stock |
9,807 |
|
|
6,751 |
|
|
18,464 |
|
|
26,345 |
|
|
37,080 |
|
Premises and equipment,
net |
105,390 |
|
|
103,404 |
|
|
105,455 |
|
|
107,736 |
|
|
98,363 |
|
Other real estate owned
("OREO"), net |
1,421 |
|
|
1,432 |
|
|
1,704 |
|
|
1,962 |
|
|
2,540 |
|
Goodwill and intangible
assets, net |
188,006 |
|
|
189,922 |
|
|
192,041 |
|
|
186,162 |
|
|
188,208 |
|
Bank-owned life insurance |
41,805 |
|
|
41,608 |
|
|
41,440 |
|
|
41,298 |
|
|
41,122 |
|
Deferred tax asset, net |
1,260 |
|
|
6,427 |
|
|
7,716 |
|
|
8,544 |
|
|
9,457 |
|
Indemnification asset |
5,246 |
|
|
36,225 |
|
|
31,218 |
|
|
— |
|
|
— |
|
Other assets |
89,747 |
|
|
73,991 |
|
|
96,901 |
|
|
75,480 |
|
|
74,386 |
|
Total assets |
$ |
6,099,628 |
|
|
$ |
5,935,791 |
|
|
$ |
5,836,787 |
|
|
$ |
5,617,493 |
|
|
$ |
5,353,729 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits |
$ |
1,637,653 |
|
|
$ |
1,352,785 |
|
|
$ |
1,315,900 |
|
|
$ |
1,120,949 |
|
|
$ |
846,412 |
|
Interest bearing deposits |
3,152,012 |
|
|
3,363,815 |
|
|
2,932,201 |
|
|
2,941,383 |
|
|
2,835,603 |
|
Total deposits |
4,789,665 |
|
|
4,716,600 |
|
|
4,248,101 |
|
|
4,062,332 |
|
|
3,682,015 |
|
Customer repurchase
agreements |
2,668 |
|
|
3,099 |
|
|
14,192 |
|
|
6,732 |
|
|
3,693 |
|
Federal Home Loan Bank
advances |
180,000 |
|
|
105,000 |
|
|
435,000 |
|
|
455,000 |
|
|
850,000 |
|
Payment Protection Program
Liquidity Facility |
158,796 |
|
|
191,860 |
|
|
223,713 |
|
|
223,809 |
|
|
— |
|
Subordinated notes |
87,564 |
|
|
87,509 |
|
|
87,455 |
|
|
87,402 |
|
|
87,347 |
|
Junior subordinated
debentures |
40,201 |
|
|
40,072 |
|
|
39,944 |
|
|
39,816 |
|
|
39,689 |
|
Other liabilities |
76,730 |
|
|
64,870 |
|
|
94,540 |
|
|
85,531 |
|
|
101,638 |
|
Total liabilities |
5,335,624 |
|
|
5,209,010 |
|
|
5,142,945 |
|
|
4,960,622 |
|
|
4,764,382 |
|
EQUITY |
|
|
|
|
|
|
|
|
|
Preferred Stock |
45,000 |
|
|
45,000 |
|
|
45,000 |
|
|
45,000 |
|
|
— |
|
Common stock |
280 |
|
|
280 |
|
|
279 |
|
|
273 |
|
|
272 |
|
Additional
paid-in-capital |
490,699 |
|
|
489,151 |
|
|
488,094 |
|
|
472,795 |
|
|
474,441 |
|
Treasury stock, at cost |
(103,059 |
) |
|
(103,052 |
) |
|
(102,942 |
) |
|
(102,888 |
) |
|
(102,677 |
) |
Retained earnings |
322,705 |
|
|
289,583 |
|
|
258,254 |
|
|
236,249 |
|
|
222,809 |
|
Accumulated other
comprehensive income (loss) |
8,379 |
|
|
5,819 |
|
|
5,157 |
|
|
5,442 |
|
|
(5,498 |
) |
Total stockholders' equity |
764,004 |
|
|
726,781 |
|
|
693,842 |
|
|
656,871 |
|
|
589,347 |
|
Total liabilities and equity |
$ |
6,099,628 |
|
|
$ |
5,935,791 |
|
|
$ |
5,836,787 |
|
|
$ |
5,617,493 |
|
|
$ |
5,353,729 |
|
Unaudited consolidated statement of income:
|
For the Three Months Ended |
(Dollars in thousands) |
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Interest income: |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
48,706 |
|
|
$ |
50,723 |
|
|
$ |
48,774 |
|
|
$ |
50,394 |
|
|
$ |
48,323 |
|
Factored receivables, including fees |
37,795 |
|
|
37,573 |
|
|
31,468 |
|
|
21,101 |
|
|
24,292 |
|
Securities |
1,650 |
|
|
1,519 |
|
|
1,927 |
|
|
2,676 |
|
|
2,107 |
|
FHLB and other restricted stock |
76 |
|
|
56 |
|
|
122 |
|
|
148 |
|
|
204 |
|
Cash deposits |
126 |
|
|
68 |
|
|
73 |
|
|
79 |
|
|
488 |
|
Total interest income |
88,353 |
|
|
89,939 |
|
|
82,364 |
|
|
74,398 |
|
|
75,414 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
Deposits |
3,372 |
|
|
4,308 |
|
|
5,834 |
|
|
7,584 |
|
|
9,677 |
|
Subordinated notes |
1,349 |
|
|
1,347 |
|
|
1,348 |
|
|
1,321 |
|
|
1,347 |
|
Junior subordinated debentures |
442 |
|
|
452 |
|
|
462 |
|
|
554 |
|
|
646 |
|
Other borrowings |
170 |
|
|
234 |
|
|
341 |
|
|
688 |
|
|
1,244 |
|
Total interest expense |
5,333 |
|
|
6,341 |
|
|
7,985 |
|
|
10,147 |
|
|
12,914 |
|
Net interest income |
83,020 |
|
|
83,598 |
|
|
74,379 |
|
|
64,251 |
|
|
62,500 |
|
Credit loss expense
(benefit) |
(7,845 |
) |
|
4,680 |
|
|
(258 |
) |
|
13,609 |
|
|
20,298 |
|
Net interest income after
credit loss expense (benefit) |
90,865 |
|
|
78,918 |
|
|
74,637 |
|
|
50,642 |
|
|
42,202 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
Service charges on deposits |
1,787 |
|
|
1,643 |
|
|
1,470 |
|
|
573 |
|
|
1,588 |
|
Card income |
1,972 |
|
|
1,949 |
|
|
2,091 |
|
|
1,941 |
|
|
1,800 |
|
Net OREO gains (losses) and valuation adjustments |
(80 |
) |
|
(217 |
) |
|
(41 |
) |
|
(101 |
) |
|
(257 |
) |
Net gains (losses) on sale of securities |
— |
|
|
16 |
|
|
3,109 |
|
|
63 |
|
|
38 |
|
Fee income |
2,249 |
|
|
1,615 |
|
|
1,402 |
|
|
1,304 |
|
|
1,686 |
|
Insurance commissions |
1,486 |
|
|
1,327 |
|
|
990 |
|
|
864 |
|
|
1,051 |
|
Gain on sale of subsidiary |
— |
|
|
— |
|
|
— |
|
|
9,758 |
|
|
— |
|
Other |
6,877 |
|
|
16,053 |
|
|
1,472 |
|
|
5,627 |
|
|
1,571 |
|
Total non-interest income |
14,291 |
|
|
22,386 |
|
|
10,493 |
|
|
20,029 |
|
|
7,477 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
35,980 |
|
|
33,798 |
|
|
31,651 |
|
|
30,804 |
|
|
30,722 |
|
Occupancy, furniture and equipment |
5,779 |
|
|
7,046 |
|
|
5,574 |
|
|
4,964 |
|
|
5,182 |
|
FDIC insurance and other regulatory assessments |
977 |
|
|
350 |
|
|
360 |
|
|
495 |
|
|
315 |
|
Professional fees |
2,545 |
|
|
2,326 |
|
|
3,265 |
|
|
1,651 |
|
|
2,107 |
|
Amortization of intangible assets |
1,975 |
|
|
2,065 |
|
|
2,141 |
|
|
2,046 |
|
|
2,078 |
|
Advertising and promotion |
890 |
|
|
1,170 |
|
|
1,105 |
|
|
1,151 |
|
|
1,292 |
|
Communications and technology |
5,900 |
|
|
5,639 |
|
|
5,569 |
|
|
5,444 |
|
|
5,501 |
|
Other |
6,846 |
|
|
6,904 |
|
|
5,632 |
|
|
6,171 |
|
|
7,556 |
|
Total non-interest expense |
60,892 |
|
|
59,298 |
|
|
55,297 |
|
|
52,726 |
|
|
54,753 |
|
Net income (loss) before
income tax |
44,264 |
|
|
42,006 |
|
|
29,833 |
|
|
17,945 |
|
|
(5,074 |
) |
Income tax expense
(benefit) |
10,341 |
|
|
9,876 |
|
|
6,929 |
|
|
4,505 |
|
|
(624 |
) |
Net income (loss) |
$ |
33,923 |
|
|
$ |
32,130 |
|
|
$ |
22,904 |
|
|
$ |
13,440 |
|
|
$ |
(4,450 |
) |
Dividends on preferred stock |
(801 |
) |
|
(802 |
) |
|
(899 |
) |
|
— |
|
|
— |
|
Net income available to common
stockholders |
$ |
33,122 |
|
|
$ |
31,328 |
|
|
$ |
22,005 |
|
|
$ |
13,440 |
|
|
$ |
(4,450 |
) |
Earnings per share:
|
For the Three Months Ended |
(Dollars in thousands) |
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Basic |
|
|
|
|
|
|
|
|
|
Net income (loss) to common stockholders |
$ |
33,122 |
|
|
$ |
31,328 |
|
|
$ |
22,005 |
|
|
$ |
13,440 |
|
|
$ |
(4,450 |
) |
Weighted average common shares outstanding |
24,675,109 |
|
|
24,653,099 |
|
|
24,592,092 |
|
|
23,987,049 |
|
|
24,314,329 |
|
Basic earnings (loss) per common share |
$ |
1.34 |
|
|
$ |
1.27 |
|
|
$ |
0.89 |
|
|
$ |
0.56 |
|
|
$ |
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
Net income (loss) to common stockholders - diluted |
$ |
33,122 |
|
|
$ |
31,328 |
|
|
$ |
22,005 |
|
|
$ |
13,440 |
|
|
$ |
(4,450 |
) |
Weighted average common shares outstanding |
24,675,109 |
|
|
24,653,099 |
|
|
24,592,092 |
|
|
23,987,049 |
|
|
24,314,329 |
|
Dilutive effects of: |
|
|
|
|
|
|
|
|
|
Assumed exercises of stock options |
130,016 |
|
|
101,664 |
|
|
48,102 |
|
|
38,627 |
|
|
— |
|
Restricted stock awards |
169,514 |
|
|
136,239 |
|
|
67,907 |
|
|
37,751 |
|
|
— |
|
Restricted stock units |
66,714 |
|
|
50,156 |
|
|
18,192 |
|
|
4,689 |
|
|
— |
|
Performance stock units - market based |
128,167 |
|
|
112,228 |
|
|
76,095 |
|
|
6,326 |
|
|
— |
|
Performance stock units - performance based |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Employee stock purchase plan |
1,418 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Weighted average shares outstanding - diluted |
25,170,938 |
|
|
25,053,386 |
|
|
24,802,388 |
|
|
24,074,442 |
|
|
24,314,329 |
|
Diluted earnings (loss) per common share |
$ |
1.32 |
|
|
$ |
1.25 |
|
|
$ |
0.89 |
|
|
$ |
0.56 |
|
|
$ |
(0.18 |
) |
Shares that were not considered in computing diluted earnings
per common share because they were antidilutive are as follows:
|
For the Three Months Ended |
|
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Stock options |
— |
|
|
— |
|
|
98,513 |
|
|
148,528 |
|
|
225,055 |
|
Restricted stock awards |
— |
|
|
— |
|
|
— |
|
|
109,834 |
|
|
147,748 |
|
Restricted stock units |
— |
|
|
— |
|
|
— |
|
|
38,801 |
|
|
55,228 |
|
Performance stock units -
market based |
— |
|
|
— |
|
|
— |
|
|
76,461 |
|
|
67,707 |
|
Performance stock units -
performance based |
256,625 |
|
|
256,625 |
|
|
261,125 |
|
|
262,625 |
|
|
254,000 |
|
Employee stock purchase
plan |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Loans held for investment summarized as of:
(Dollars in thousands) |
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Commercial real estate |
$ |
784,110 |
|
|
$ |
779,158 |
|
|
$ |
762,531 |
|
|
$ |
910,261 |
|
|
$ |
985,757 |
|
Construction, land
development, land |
223,841 |
|
|
219,647 |
|
|
244,512 |
|
|
213,617 |
|
|
198,050 |
|
1-4 family residential
properties |
142,859 |
|
|
157,147 |
|
|
164,785 |
|
|
168,707 |
|
|
169,703 |
|
Farmland |
97,835 |
|
|
103,685 |
|
|
110,966 |
|
|
125,259 |
|
|
133,579 |
|
Commercial |
1,581,125 |
|
|
1,562,957 |
|
|
1,536,903 |
|
|
1,518,656 |
|
|
1,412,822 |
|
Factored receivables |
1,208,718 |
|
|
1,120,770 |
|
|
1,016,337 |
|
|
561,576 |
|
|
661,100 |
|
Consumer |
14,332 |
|
|
15,838 |
|
|
17,106 |
|
|
18,450 |
|
|
20,326 |
|
Mortgage warehouse |
1,031,692 |
|
|
1,037,574 |
|
|
999,771 |
|
|
876,785 |
|
|
739,211 |
|
Total loans |
$ |
5,084,512 |
|
|
$ |
4,996,776 |
|
|
$ |
4,852,911 |
|
|
$ |
4,393,311 |
|
|
$ |
4,320,548 |
|
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:
(Dollars in thousands) |
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Commercial - Equipment |
$ |
623,248 |
|
|
$ |
573,163 |
|
|
$ |
509,849 |
|
|
$ |
487,145 |
|
|
$ |
479,483 |
|
Commercial - Asset-based
lending |
188,825 |
|
|
180,488 |
|
|
160,711 |
|
|
176,235 |
|
|
245,001 |
|
Factored receivables |
1,208,718 |
|
|
1,120,770 |
|
|
1,016,337 |
|
|
561,576 |
|
|
661,100 |
|
Commercial finance |
$ |
2,020,791 |
|
|
$ |
1,874,421 |
|
|
$ |
1,686,897 |
|
|
$ |
1,224,956 |
|
|
$ |
1,385,584 |
|
|
|
|
|
|
|
|
|
|
|
Commercial finance % of total
loans |
40 |
% |
|
38 |
% |
|
35 |
% |
|
28 |
% |
|
32 |
% |
National lending loans are further summarized below:
(Dollars in thousands) |
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Mortgage warehouse |
$ |
1,031,692 |
|
|
$ |
1,037,574 |
|
|
$ |
999,771 |
|
|
$ |
876,785 |
|
|
$ |
739,211 |
|
Commercial - Liquid
credit |
159,436 |
|
|
184,027 |
|
|
188,034 |
|
|
192,118 |
|
|
172,380 |
|
National lending |
$ |
1,191,128 |
|
|
$ |
1,221,601 |
|
|
$ |
1,187,805 |
|
|
$ |
1,068,903 |
|
|
$ |
911,591 |
|
|
|
|
|
|
|
|
|
|
|
National lending % of total
loans |
23 |
% |
|
24 |
% |
|
24 |
% |
|
24 |
% |
|
21 |
% |
Additional information pertaining to our loan portfolio,
including loans held for investment and loans held for sale,
summarized for the quarters ended:
(Dollars in thousands) |
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Average community banking |
$ |
1,843,002 |
|
|
$ |
1,963,435 |
|
|
$ |
2,047,059 |
|
|
$ |
2,111,615 |
|
|
$ |
2,041,256 |
|
Average commercial
finance |
1,899,264 |
|
|
1,798,550 |
|
|
1,480,593 |
|
|
1,259,584 |
|
|
1,292,749 |
|
Average national lending |
1,106,010 |
|
|
1,114,822 |
|
|
998,411 |
|
|
1,038,476 |
|
|
711,837 |
|
Average total loans |
$ |
4,848,276 |
|
|
$ |
4,876,807 |
|
|
$ |
4,526,063 |
|
|
$ |
4,409,675 |
|
|
$ |
4,045,842 |
|
Community banking yield |
4.90 |
% |
|
5.46 |
% |
|
5.05 |
% |
|
5.23 |
% |
|
5.67 |
% |
Commercial finance yield |
10.81 |
% |
|
10.74 |
% |
|
11.23 |
% |
|
10.21 |
% |
|
11.00 |
% |
National lending yield |
5.00 |
% |
|
4.58 |
% |
|
4.98 |
% |
|
4.67 |
% |
|
4.80 |
% |
Total loan yield |
7.24 |
% |
|
7.20 |
% |
|
7.05 |
% |
|
6.52 |
% |
|
7.22 |
% |
Information pertaining to our factoring segment, which includes
only factoring originated by our Triumph Business Capital
subsidiary, summarized as of and for the quarters ended:
|
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Factored receivable period end
balance |
$ |
1,118,972,000 |
|
|
$ |
1,036,369,000 |
|
|
$ |
948,987,000 |
|
|
$ |
528,379,000 |
|
|
$ |
641,366,000 |
|
Yield on average receivable
balance |
13.85 |
% |
|
13.81 |
% |
|
15.65 |
% |
|
15.48 |
% |
|
16.13 |
% |
Current quarter charge-off
rate(1) |
3.95 |
% |
|
0.02 |
% |
|
0.09 |
% |
|
0.16 |
% |
|
0.23 |
% |
Factored receivables -
transportation concentration |
90 |
% |
|
89 |
% |
|
88 |
% |
|
85 |
% |
|
80 |
% |
|
|
|
|
|
|
|
|
|
|
Interest income, including
fees |
$ |
35,824,000 |
|
|
$ |
35,439,000 |
|
|
$ |
30,068,000 |
|
|
$ |
20,387,000 |
|
|
$ |
23,497,000 |
|
Non-interest income(2) |
1,757,000 |
|
|
1,358,000 |
|
|
1,157,000 |
|
|
1,072,000 |
|
|
1,296,000 |
|
Factored receivable total
revenue |
37,581,000 |
|
|
36,797,000 |
|
|
31,225,000 |
|
|
21,459,000 |
|
|
24,793,000 |
|
Average net funds
employed |
936,528,000 |
|
|
924,899,000 |
|
|
694,170,000 |
|
|
477,112,000 |
|
|
537,138,000 |
|
Yield on average net funds
employed |
16.27 |
% |
|
15.83 |
% |
|
17.89 |
% |
|
18.09 |
% |
|
18.56 |
% |
|
|
|
|
|
|
|
|
|
|
Accounts receivable
purchased |
$ |
2,492,468,000 |
|
|
$ |
2,461,249,000 |
|
|
$ |
1,984,490,000 |
|
|
$ |
1,238,465,000 |
|
|
$ |
1,450,618,000 |
|
Number of invoices
purchased |
1,188,678 |
|
|
1,189,271 |
|
|
1,027,839 |
|
|
812,902 |
|
|
878,767 |
|
Average invoice size |
$ |
2,097 |
|
|
$ |
2,070 |
|
|
$ |
1,931 |
|
|
$ |
1,524 |
|
|
$ |
1,651 |
|
Average invoice size -
transportation |
$ |
1,974 |
|
|
$ |
1,943 |
|
|
$ |
1,787 |
|
|
$ |
1,378 |
|
|
$ |
1,481 |
|
Average invoice size -
non-transportation |
$ |
4,775 |
|
|
$ |
5,091 |
|
|
$ |
5,181 |
|
|
$ |
4,486 |
|
|
$ |
4,061 |
|
(1) |
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. |
|
|
(2) |
Total factoring segment
non-interest income was $6.4 million, $15.5 million, and $3.2
million for the three months ended March 31, 2021, December 31,
2020 and September 30, 2020.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.December 31, 2020
non-interest income used to calculate yield on average net funds
employed excludes a gain of $8.9 million related to CVLG’s delivery
of proceeds resulting from the liquidation of its acquired stock
and a $5.3 million gain on our indemnification asset.September 30,
2020 non-interest income used to calculate yield on average net
funds employed excludes a $2.0 million gain recognized on the
increased value of the receivable due from CVLG resulting from the
amended TFS acquisition agreement. |
Deposits summarized as of:
(Dollars in thousands) |
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Non-interest bearing
demand |
$ |
1,637,653 |
|
|
$ |
1,352,785 |
|
|
$ |
1,315,900 |
|
|
$ |
1,120,949 |
|
|
$ |
846,412 |
|
Interest bearing demand |
729,364 |
|
|
688,680 |
|
|
634,272 |
|
|
648,309 |
|
|
583,445 |
|
Individual retirement
accounts |
89,748 |
|
|
92,584 |
|
|
94,933 |
|
|
97,388 |
|
|
101,743 |
|
Money market |
402,070 |
|
|
393,325 |
|
|
384,476 |
|
|
397,914 |
|
|
412,376 |
|
Savings |
464,035 |
|
|
421,488 |
|
|
405,954 |
|
|
391,624 |
|
|
367,163 |
|
Certificates of deposit |
740,694 |
|
|
790,844 |
|
|
857,514 |
|
|
937,766 |
|
|
1,056,012 |
|
Brokered time deposits |
516,006 |
|
|
516,786 |
|
|
344,986 |
|
|
258,378 |
|
|
314,864 |
|
Other brokered deposits |
210,095 |
|
|
460,108 |
|
|
210,066 |
|
|
210,004 |
|
|
— |
|
Total deposits |
$ |
4,789,665 |
|
|
$ |
4,716,600 |
|
|
$ |
4,248,101 |
|
|
$ |
4,062,332 |
|
|
$ |
3,682,015 |
|
Net interest margin summarized for the three months ended:
|
March 31, 2021 |
|
December 31, 2020 |
(Dollars in thousands) |
AverageBalance |
|
Interest |
|
AverageRate |
|
AverageBalance |
|
Interest |
|
AverageRate |
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest earning cash balances |
$ |
478,275 |
|
|
$ |
126 |
|
|
0.11 |
% |
|
$ |
230,893 |
|
|
$ |
68 |
|
|
0.12 |
% |
Taxable securities |
189,407 |
|
|
1,428 |
|
|
3.06 |
% |
|
202,867 |
|
|
1,283 |
|
|
2.52 |
% |
Tax-exempt securities |
34,717 |
|
|
222 |
|
|
2.59 |
% |
|
37,070 |
|
|
236 |
|
|
2.53 |
% |
FHLB and other restricted stock |
8,511 |
|
|
76 |
|
|
3.62 |
% |
|
15,759 |
|
|
56 |
|
|
1.41 |
% |
Loans |
4,848,275 |
|
|
86,501 |
|
|
7.24 |
% |
|
4,876,807 |
|
|
88,296 |
|
|
7.20 |
% |
Total interest earning assets |
$ |
5,559,185 |
|
|
$ |
88,353 |
|
|
6.45 |
% |
|
$ |
5,363,396 |
|
|
$ |
89,939 |
|
|
6.67 |
% |
Non-interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Other assets |
454,483 |
|
|
|
|
|
|
425,153 |
|
|
|
|
|
Total assets |
$ |
6,013,668 |
|
|
|
|
|
|
$ |
5,788,549 |
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand |
$ |
701,759 |
|
|
$ |
384 |
|
|
0.22 |
% |
|
$ |
662,458 |
|
|
$ |
235 |
|
|
0.14 |
% |
Individual retirement accounts |
91,074 |
|
|
186 |
|
|
0.83 |
% |
|
94,328 |
|
|
250 |
|
|
1.05 |
% |
Money market |
398,015 |
|
|
229 |
|
|
0.23 |
% |
|
395,900 |
|
|
257 |
|
|
0.26 |
% |
Savings |
446,322 |
|
|
167 |
|
|
0.15 |
% |
|
413,214 |
|
|
157 |
|
|
0.15 |
% |
Certificates of deposit |
765,244 |
|
|
1,955 |
|
|
1.04 |
% |
|
814,954 |
|
|
2,633 |
|
|
1.29 |
% |
Brokered time deposits |
167,881 |
|
|
179 |
|
|
0.43 |
% |
|
221,346 |
|
|
528 |
|
|
0.95 |
% |
Other brokered deposits |
803,009 |
|
|
272 |
|
|
0.14 |
% |
|
560,805 |
|
|
248 |
|
|
0.18 |
% |
Total interest bearing deposits |
3,373,304 |
|
|
3,372 |
|
|
0.41 |
% |
|
3,163,005 |
|
|
4,308 |
|
|
0.54 |
% |
Federal Home Loan Bank advances |
35,833 |
|
|
24 |
|
|
0.27 |
% |
|
80,217 |
|
|
43 |
|
|
0.21 |
% |
Subordinated notes |
87,532 |
|
|
1,349 |
|
|
6.25 |
% |
|
87,476 |
|
|
1,347 |
|
|
6.13 |
% |
Junior subordinated debentures |
40,125 |
|
|
442 |
|
|
4.47 |
% |
|
39,996 |
|
|
452 |
|
|
4.50 |
% |
Other borrowings |
171,902 |
|
|
146 |
|
|
0.34 |
% |
|
223,501 |
|
|
191 |
|
|
0.34 |
% |
Total interest bearing liabilities |
$ |
3,708,696 |
|
|
$ |
5,333 |
|
|
0.58 |
% |
|
$ |
3,594,195 |
|
|
$ |
6,341 |
|
|
0.70 |
% |
Non-interest bearing liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand deposits |
1,494,001 |
|
|
|
|
|
|
1,392,389 |
|
|
|
|
|
Other liabilities |
64,122 |
|
|
|
|
|
|
81,073 |
|
|
|
|
|
Total equity |
746,849 |
|
|
|
|
|
|
720,892 |
|
|
|
|
|
Total liabilities and equity |
$ |
6,013,668 |
|
|
|
|
|
|
$ |
5,788,549 |
|
|
|
|
|
Net
interest income |
|
|
$ |
83,020 |
|
|
|
|
|
|
$ |
83,598 |
|
|
|
Interest spread |
|
|
|
|
5.87 |
% |
|
|
|
|
|
5.97 |
% |
Net
interest margin |
|
|
|
|
6.06 |
% |
|
|
|
|
|
6.20 |
% |
|
Loan balance
totals include respective nonaccrual assets.Net interest spread is
the yield on average interest earning assets less the rate on
interest bearing liabilities.Net interest margin is the ratio of
net interest income to average interest earning assets.Average
rates have been annualized. |
Metrics and non-GAAP financial reconciliation:
|
|
As of and for the Three Months Ended |
(Dollars in thousands,except per share amounts) |
|
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Net income available to common stockholders |
|
$ |
33,122 |
|
|
|
$ |
31,328 |
|
|
|
$ |
22,005 |
|
|
|
$ |
13,440 |
|
|
|
$ |
(4,450 |
) |
|
Transaction costs |
|
— |
|
|
|
— |
|
|
|
827 |
|
|
|
— |
|
|
|
— |
|
|
Gain on sale of subsidiary or division |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,758 |
) |
|
|
— |
|
|
Tax effect of adjustments |
|
— |
|
|
|
— |
|
|
|
(197 |
) |
|
|
2,451 |
|
|
|
— |
|
|
Adjusted net income available
to common stockholders - diluted |
|
$ |
33,122 |
|
|
|
$ |
31,328 |
|
|
|
$ |
22,635 |
|
|
|
$ |
6,133 |
|
|
|
$ |
(4,450 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - diluted |
|
25,170,938 |
|
|
|
25,053,386 |
|
|
|
24,802,388 |
|
|
|
24,074,442 |
|
|
|
24,314,329 |
|
|
Adjusted diluted earnings per
common share |
|
$ |
1.32 |
|
|
|
$ |
1.25 |
|
|
|
$ |
0.91 |
|
|
|
$ |
0.25 |
|
|
|
$ |
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Average total stockholders'
equity |
|
$ |
746,849 |
|
|
|
$ |
720,892 |
|
|
|
$ |
688,327 |
|
|
|
$ |
610,258 |
|
|
|
$ |
627,369 |
|
|
Average preferred stock
liquidation preference |
|
(45,000 |
) |
|
|
(45,000 |
) |
|
|
(45,000 |
) |
|
|
(5,934 |
) |
|
|
— |
|
|
Average total common
stockholders' equity |
|
701,849 |
|
|
|
675,892 |
|
|
|
643,327 |
|
|
|
604,324 |
|
|
|
627,369 |
|
|
Average goodwill and other intangibles |
|
(188,980 |
) |
|
|
(191,017 |
) |
|
|
(192,682 |
) |
|
|
(187,255 |
) |
|
|
(189,359 |
) |
|
Average tangible common
stockholders' equity |
|
$ |
512,869 |
|
|
|
$ |
484,875 |
|
|
|
$ |
450,645 |
|
|
|
$ |
417,069 |
|
|
|
$ |
438,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common
stockholders |
|
$ |
33,122 |
|
|
|
$ |
31,328 |
|
|
|
$ |
22,005 |
|
|
|
$ |
13,440 |
|
|
|
$ |
(4,450 |
) |
|
Average tangible common
equity |
|
512,869 |
|
|
|
484,875 |
|
|
|
450,645 |
|
|
|
417,069 |
|
|
|
438,010 |
|
|
Return on average tangible
common equity |
|
26.19 |
|
% |
|
25.70 |
|
% |
|
19.43 |
|
% |
|
12.96 |
|
% |
|
(4.09 |
|
%) |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
83,020 |
|
|
|
$ |
83,598 |
|
|
|
$ |
74,379 |
|
|
|
$ |
64,251 |
|
|
|
$ |
62,500 |
|
|
Non-interest income |
|
14,291 |
|
|
|
22,386 |
|
|
|
10,493 |
|
|
|
20,029 |
|
|
|
7,477 |
|
|
Operating revenue |
|
97,311 |
|
|
|
105,984 |
|
|
|
84,872 |
|
|
|
84,280 |
|
|
|
69,977 |
|
|
Gain on sale of subsidiary or division |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,758 |
) |
|
|
— |
|
|
Adjusted operating
revenue |
|
$ |
97,311 |
|
|
|
$ |
105,984 |
|
|
|
$ |
84,872 |
|
|
|
$ |
74,522 |
|
|
|
$ |
69,977 |
|
|
Non-interest expenses |
|
$ |
60,892 |
|
|
|
$ |
59,298 |
|
|
|
$ |
55,297 |
|
|
|
$ |
52,726 |
|
|
|
$ |
54,753 |
|
|
Transaction costs |
|
— |
|
|
|
— |
|
|
|
(827 |
) |
|
|
— |
|
|
|
— |
|
|
Adjusted non-interest
expenses |
|
$ |
60,892 |
|
|
|
$ |
59,298 |
|
|
|
$ |
54,470 |
|
|
|
$ |
52,726 |
|
|
|
$ |
54,753 |
|
|
Adjusted efficiency ratio |
|
62.57 |
|
% |
|
55.95 |
|
% |
|
64.18 |
|
% |
|
70.75 |
|
% |
|
78.24 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net non-interest
expense to average assets ratio: |
|
|
|
|
|
|
|
|
|
|
Non-interest expenses |
|
$ |
60,892 |
|
|
|
$ |
59,298 |
|
|
|
$ |
55,297 |
|
|
|
$ |
52,726 |
|
|
|
$ |
54,753 |
|
|
Transaction costs |
|
— |
|
|
|
— |
|
|
|
(827 |
) |
|
|
— |
|
|
|
— |
|
|
Adjusted non-interest
expenses |
|
$ |
60,892 |
|
|
|
$ |
59,298 |
|
|
|
$ |
54,470 |
|
|
|
$ |
52,726 |
|
|
|
$ |
54,753 |
|
|
Total non-interest income |
|
$ |
14,291 |
|
|
|
$ |
22,386 |
|
|
|
$ |
10,493 |
|
|
|
$ |
20,029 |
|
|
|
$ |
7,477 |
|
|
Gain on sale of subsidiary or division |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,758 |
) |
|
|
— |
|
|
Adjusted non-interest
income |
|
$ |
14,291 |
|
|
|
$ |
22,386 |
|
|
|
$ |
10,493 |
|
|
|
$ |
10,271 |
|
|
|
$ |
7,477 |
|
|
Adjusted net non-interest
expenses |
|
$ |
46,601 |
|
|
|
$ |
36,912 |
|
|
|
$ |
43,977 |
|
|
|
$ |
42,455 |
|
|
|
$ |
47,276 |
|
|
Average total assets |
|
$ |
6,013,668 |
|
|
|
$ |
5,788,549 |
|
|
|
$ |
5,518,708 |
|
|
|
$ |
5,487,072 |
|
|
|
$ |
4,906,547 |
|
|
Adjusted net non-interest
expense to average assets ratio |
|
3.14 |
|
% |
|
2.54 |
|
% |
|
3.17 |
|
% |
|
3.11 |
|
% |
|
3.88 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity |
|
$ |
764,004 |
|
|
|
$ |
726,781 |
|
|
|
$ |
693,842 |
|
|
|
$ |
656,871 |
|
|
|
$ |
589,347 |
|
|
Preferred stock liquidation preference |
|
(45,000 |
) |
|
|
(45,000 |
) |
|
|
(45,000 |
) |
|
|
(45,000 |
) |
|
|
— |
|
|
Total common stockholders'
equity |
|
719,004 |
|
|
|
681,781 |
|
|
|
648,842 |
|
|
|
611,871 |
|
|
|
589,347 |
|
|
Goodwill and other intangibles |
|
(188,006 |
) |
|
|
(189,922 |
) |
|
|
(192,041 |
) |
|
|
(186,162 |
) |
|
|
(188,208 |
) |
|
Tangible common stockholders'
equity |
|
$ |
530,998 |
|
|
|
$ |
491,859 |
|
|
|
$ |
456,801 |
|
|
|
$ |
425,709 |
|
|
|
$ |
401,139 |
|
|
Common shares outstanding |
|
24,882,929 |
|
|
|
24,868,218 |
|
|
|
24,851,601 |
|
|
|
24,202,686 |
|
|
|
24,101,120 |
|
|
Tangible book value per
share |
|
$ |
21.34 |
|
|
|
$ |
19.78 |
|
|
|
$ |
18.38 |
|
|
|
$ |
17.59 |
|
|
|
$ |
16.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at end of
period |
|
$ |
6,099,628 |
|
|
|
$ |
5,935,791 |
|
|
|
$ |
5,836,787 |
|
|
|
$ |
5,617,493 |
|
|
|
$ |
5,353,729 |
|
|
Goodwill and other intangibles |
|
(188,006 |
) |
|
|
(189,922 |
) |
|
|
(192,041 |
) |
|
|
(186,162 |
) |
|
|
(188,208 |
) |
|
Tangible assets at period
end |
|
$ |
5,911,622 |
|
|
|
$ |
5,745,869 |
|
|
|
$ |
5,644,746 |
|
|
|
$ |
5,431,331 |
|
|
|
$ |
5,165,521 |
|
|
Tangible common stockholders'
equity ratio |
|
8.98 |
|
% |
|
8.56 |
|
% |
|
8.09 |
|
% |
|
7.84 |
|
% |
|
7.77 |
|
% |
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 |
(Dollars in thousands) |
March 31,2021 |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
Loan discount accretion |
$ |
3,501 |
|
|
$ |
2,334 |
|
|
$ |
4,104 |
|
|
$ |
2,139 |
|
|
$ |
2,134 |
|
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 WyseSenior Vice
President, Finance & Investor
Relationslwyse@tbkbank.com214-365-6936
Media Contact:Amanda TavackoliSenior Vice
President, Director of Corporate
Communicationatavackoli@tbkbank.com214-365-6930
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