UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 22, 2019
TRIUMPH BANCORP, INC.
(Exact name of registrant as specified in its charter)
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Texas |
001-36722 |
20-0477066 |
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(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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12700 Park Central Drive, Suite 1700, Dallas, Texas |
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75251 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
(214) 365-6900
(Registrant’s telephone number, including area code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2b) |
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On January 22, 2019, Triumph Bancorp, Inc. (the “Company”) issued a press release that announced its 2018 fourth quarter earnings. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. This press release includes certain non-GAAP financial measures. A reconciliation of those measures to the most directly comparable GAAP measures is included as a table in the press release. The information in this Item 2.02, including Exhibit 99.1, shall be considered furnished for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be deemed “filed” for any purpose.
Item 7.01.Regulation FD Disclosure
In addition, this Form 8-K includes a copy of the Company’s presentation to analysts and investors for its quarter ended December 31, 2018, which is attached hereto as Exhibit 99.2. The information in this Item 7.01, including Exhibit 99.2, shall be considered furnished for purposes of the Exchange Act and shall not be deemed “filed” for any purpose.
Forward-Looking Statements
This Current Report on Form 8-K 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., the operating assets of Interstate Capital Corporation and certain of its affiliates, Valley Bancorp, Inc., and nine branches from Independent Bank in Colorado) 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 13, 2018.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
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Exhibit |
Description |
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99.1 |
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99.2 |
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EXHIBIT INDEX
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Exhibit |
Description |
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99.1 |
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99.2 |
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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TRIUMPH BANCORP, INC.
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By: |
/s/ Adam D. Nelson |
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Name: Adam D. Nelson Title: Executive Vice President & General Counsel |
Date: January 22, 2019
Exhibit 99.1
Triumph Bancorp Reports Fourth Quarter Net Income to Common Stockholders of $18.1 Million
DALLAS – January 22, 2019 (GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph”) today announced earnings and operating results for the fourth quarter of 2018.
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.
2018 Fourth Quarter Highlights and Recent Developments
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For the fourth quarter of 2018, net income available to common stockholders was $18.1 million. Diluted earnings per share were $0.67. |
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• |
Net interest margin (“NIM”) was 6.34% for the quarter ended December 31, 2018. |
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• |
Total loans held for investment increased $96.5 million, or 2.7%, to $3.609 billion at December 31, 2018. Average loans for the quarter increased $238.8 million, or 7.2%, to $3.532 billion. |
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• |
Triumph Business Capital grew period-end clients to 6,191 clients which is an increase of 259 clients, or 4.4%. The total dollar value of invoices purchased for the quarter ended December 31, 2018 was $1.541 billion with an average invoice price of $1,747. |
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• |
At December 31, 2018, there were 113 clients utilizing the TriumphPay platform. For the quarter ended December 31, 2018, TriumphPay processed 83,326 invoices paying 19,274 distinct carriers a total of $123.1 million. |
Balance Sheet
Total loans held for investment were $3.609 billion at December 31, 2018. Our commercial finance loans, which comprise 35% of the loan portfolio, were $1.256 billion at December 31, 2018, compared to $1.284 billion at September 30, 2018, a decrease of $27.3 million, or 2.1% in the fourth quarter of 2018. The decrease in commercial finance was primarily a result of our efforts to decrease the overall risk profile of our asset based lending portfolio.
Total deposits were $3.450 billion at December 31, 2018, an increase of $11.3 million or 0.3% in the fourth quarter of 2018. Non-interest-bearing deposits accounted for 21% of total deposits and non-time deposits accounted for 62% of total deposits at December 31, 2018.
On October 26, 2018, our preferred shareholders converted all remaining preferred stock to 670,236 shares of common stock.
Net Interest Income
We earned net interest income for the quarter ended December 31, 2018 of $64.9 million compared to $61.8 million for the quarter ended September 30, 2018.
Yields on loans for the quarter ended December 31, 2018 were down 19 bps from the prior quarter to 8.14%. The average cost of our total deposits was 0.91% for the quarter ended December 31, 2018 compared to 0.85% for the quarter ended September 30, 2018, on an annualized basis.
Asset Quality
Non-performing assets decreased 9 bps from September 30, 2018 to 0.84% of total assets at December 31, 2018. The ratio of past due to total loans increased to 2.41% at December 31, 2018 from 2.23% at September 30, 2018. We recorded total net charge-offs of $1.6 million, or 0.05% of average loans, for the quarter ended December 31, 2018 compared to net charge-offs of $4.1 million, or 0.12% of average loans, for the quarter ended September 30, 2018.
1
We recorded a provision for loan losses of $1.9 million for the quarter ended December 31, 2018 compared to a provision of $6.8 million for the quarter ended September 30, 2018. From September 30, 2018 to December 31, 2018, our ALLL increased from $27.3 million or 0.78% of total loans to $27.6 million or 0.76% of total loans.
Non-Interest Income and Expense
We earned non-interest income for the quarter ended December 31, 2018 of $6.8 million compared to $6.1 million for the quarter ended September 30, 2018.
For the quarter ended December 31, 2018, non-interest expense totaled $47.0 million, compared to $48.9 million for the quarter ended September 30, 2018. Non-interest expense for the quarter ended September 30, 2018 included transaction costs related to the First Bancorp of Durango, Inc. and Southern Colorado Corp. acquisitions of $5.9 million.
Conference Call Information
Aaron P. Graft, Vice Chairman and CEO and Bryce Fowler, CFO will review the quarterly results in a conference call for investors and analysts beginning at 7:00 a.m. Central Time on Wednesday, January 23, 2019. Dan Karas, 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/tbk190123.html. An archive of this conference call will subsequently be available at this same location on the Company’s website.
2
Triumph Bancorp, Inc. (Nasdaq: TBK) is a financial holding company headquartered in Dallas, Texas. Triumph offers a diversified line of community banking 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., the operating assets of Interstate Capital Corporation and certain of its affiliates, Valley Bancorp, Inc., and nine branches from Independent Bank in Colorado) 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 13, 2018.
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.
3
The following table sets forth key metrics used by Triumph to monitor its operations. Footnotes in this table can be found in our definitions of non-GAAP financial measures at the end of this document.
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As of and for the Three Months Ended |
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As of and for the Years Ended |
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December 31, |
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September 30, |
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June 30, |
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March 31, |
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December 31, |
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December 31, |
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December 31, |
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(Dollars in thousands) |
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2018 |
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2018 |
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2018 |
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2018 |
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2017 |
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2018 |
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2017 |
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Financial Highlights: |
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Total assets |
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$ |
4,559,779 |
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$ |
4,537,102 |
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$ |
3,794,631 |
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$ |
3,405,010 |
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$ |
3,499,033 |
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$ |
4,559,779 |
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$ |
3,499,033 |
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Loans held for investment |
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$ |
3,608,644 |
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$ |
3,512,143 |
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$ |
3,196,462 |
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$ |
2,873,985 |
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$ |
2,810,856 |
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$ |
3,608,644 |
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$ |
2,810,856 |
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Deposits |
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$ |
3,450,349 |
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$ |
3,439,049 |
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$ |
2,624,942 |
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$ |
2,533,498 |
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$ |
2,621,348 |
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$ |
3,450,349 |
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$ |
2,621,348 |
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Net income available to common stockholders |
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$ |
18,085 |
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$ |
8,975 |
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$ |
12,192 |
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$ |
11,878 |
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$ |
6,111 |
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$ |
51,130 |
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$ |
35,446 |
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Performance Ratios - Annualized: |
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Return on average assets |
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1.60 |
% |
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0.90 |
% |
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1.37 |
% |
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1.43 |
% |
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0.79 |
% |
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1.33 |
% |
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1.27 |
% |
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Return on average total equity |
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11.35 |
% |
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5.88 |
% |
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8.53 |
% |
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12.20 |
% |
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6.35 |
% |
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9.24 |
% |
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10.66 |
% |
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Return on average common equity |
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11.40 |
% |
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5.85 |
% |
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8.54 |
% |
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12.30 |
% |
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6.30 |
% |
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9.27 |
% |
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10.73 |
% |
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Return on average tangible common equity (1) |
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16.73 |
% |
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7.57 |
% |
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9.95 |
% |
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14.75 |
% |
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7.33 |
% |
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11.90 |
% |
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12.50 |
% |
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Yield on loans(2) |
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8.14 |
% |
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8.33 |
% |
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8.09 |
% |
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7.65 |
% |
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7.73 |
% |
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8.07 |
% |
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7.55 |
% |
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Cost of interest bearing deposits |
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1.15 |
% |
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1.08 |
% |
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0.93 |
% |
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0.86 |
% |
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0.84 |
% |
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1.02 |
% |
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0.78 |
% |
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Cost of total deposits |
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0.91 |
% |
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0.85 |
% |
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0.73 |
% |
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0.68 |
% |
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0.67 |
% |
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0.80 |
% |
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0.62 |
% |
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Cost of total funds |
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1.14 |
% |
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1.16 |
% |
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1.06 |
% |
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0.95 |
% |
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0.92 |
% |
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1.09 |
% |
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0.86 |
% |
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Net interest margin(2) |
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6.34 |
% |
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6.59 |
% |
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6.36 |
% |
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6.06 |
% |
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6.16 |
% |
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6.35 |
% |
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5.92 |
% |
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Net non-interest expense to average assets |
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3.55 |
% |
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4.19 |
% |
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3.59 |
% |
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3.43 |
% |
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3.65 |
% |
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3.70 |
% |
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2.92 |
% |
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Adjusted net non-interest expense to average assets (1) |
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3.55 |
% |
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3.62 |
% |
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3.47 |
% |
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3.56 |
% |
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3.43 |
% |
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3.55 |
% |
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3.41 |
% |
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Efficiency ratio |
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65.52 |
% |
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72.15 |
% |
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64.26 |
% |
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65.09 |
% |
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66.74 |
% |
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66.94 |
% |
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62.96 |
% |
|
Adjusted efficiency ratio (1) |
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65.52 |
% |
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63.49 |
% |
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62.38 |
% |
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66.45 |
% |
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63.35 |
% |
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64.43 |
% |
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66.55 |
% |
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Asset Quality:(3) |
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Past due to total loans |
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2.41 |
% |
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2.23 |
% |
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2.54 |
% |
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2.41 |
% |
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2.33 |
% |
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2.41 |
% |
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2.33 |
% |
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Non-performing loans to total loans |
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1.00 |
% |
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1.13 |
% |
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1.43 |
% |
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1.41 |
% |
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1.38 |
% |
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1.00 |
% |
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1.38 |
% |
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Non-performing assets to total assets |
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0.84 |
% |
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0.93 |
% |
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1.28 |
% |
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1.47 |
% |
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1.39 |
% |
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0.84 |
% |
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1.39 |
% |
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ALLL to non-performing loans |
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76.47 |
% |
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68.82 |
% |
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53.57 |
% |
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49.52 |
% |
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48.41 |
% |
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76.47 |
% |
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48.41 |
% |
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ALLL to total loans |
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0.76 |
% |
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0.78 |
% |
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0.77 |
% |
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0.70 |
% |
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0.67 |
% |
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0.76 |
% |
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0.67 |
% |
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Net charge-offs to average loans |
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0.05 |
% |
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0.12 |
% |
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0.01 |
% |
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0.05 |
% |
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0.06 |
% |
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0.23 |
% |
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0.28 |
% |
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Capital: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital to average assets(4) |
|
|
11.08 |
% |
|
|
11.75 |
% |
|
|
15.00 |
% |
|
|
11.23 |
% |
|
|
11.80 |
% |
|
|
11.08 |
% |
|
|
11.80 |
% |
|
Tier 1 capital to risk-weighted assets(4) |
|
|
11.53 |
% |
|
|
11.16 |
% |
|
|
14.68 |
% |
|
|
11.54 |
% |
|
|
11.15 |
% |
|
|
11.53 |
% |
|
|
11.15 |
% |
|
Common equity tier 1 capital to risk-weighted assets(4) |
|
|
10.58 |
% |
|
|
9.96 |
% |
|
|
13.32 |
% |
|
|
10.05 |
% |
|
|
9.70 |
% |
|
|
10.58 |
% |
|
|
9.70 |
% |
|
Total capital to risk-weighted assets(4) |
|
|
13.40 |
% |
|
|
13.05 |
% |
|
|
16.73 |
% |
|
|
13.66 |
% |
|
|
13.21 |
% |
|
|
13.40 |
% |
|
|
13.21 |
% |
|
Total equity to total assets |
|
|
13.96 |
% |
|
|
13.59 |
% |
|
|
16.00 |
% |
|
|
11.83 |
% |
|
|
11.19 |
% |
|
|
13.96 |
% |
|
|
11.19 |
% |
|
Tangible common stockholders' equity to tangible assets(1) |
|
|
10.03 |
% |
|
|
9.35 |
% |
|
|
13.05 |
% |
|
|
9.86 |
% |
|
|
9.26 |
% |
|
|
10.03 |
% |
|
|
9.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
23.62 |
|
|
$ |
23.10 |
|
|
$ |
22.76 |
|
|
$ |
18.89 |
|
|
$ |
18.35 |
|
|
$ |
23.62 |
|
|
$ |
18.35 |
|
|
Tangible book value per share (1) |
|
$ |
16.22 |
|
|
$ |
15.42 |
|
|
$ |
18.27 |
|
|
$ |
15.82 |
|
|
$ |
15.29 |
|
|
$ |
16.22 |
|
|
$ |
15.29 |
|
|
Basic earnings per common share |
|
$ |
0.68 |
|
|
$ |
0.34 |
|
|
$ |
0.48 |
|
|
$ |
0.57 |
|
|
$ |
0.29 |
|
|
$ |
2.06 |
|
|
$ |
1.85 |
|
|
Diluted earnings per common share |
|
$ |
0.67 |
|
|
$ |
0.34 |
|
|
$ |
0.47 |
|
|
$ |
0.56 |
|
|
$ |
0.29 |
|
|
$ |
2.03 |
|
|
$ |
1.81 |
|
|
Adjusted diluted earnings per common share(1) |
|
$ |
0.67 |
|
|
$ |
0.51 |
|
|
$ |
0.50 |
|
|
$ |
0.52 |
|
|
$ |
0.34 |
|
|
$ |
2.21 |
|
|
$ |
1.37 |
|
|
Shares outstanding end of period |
|
|
26,949,936 |
|
|
|
26,279,761 |
|
|
|
26,260,785 |
|
|
|
20,824,509 |
|
|
|
20,820,445 |
|
|
|
26,949,936 |
|
|
|
20,820,445 |
|
4
Unaudited consolidated balance sheet as of:
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|||||
|
(Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
|
$ |
234,939 |
|
|
$ |
282,409 |
|
|
$ |
133,365 |
|
|
$ |
106,046 |
|
|
$ |
134,129 |
|
|
Securities - available for sale |
|
|
336,423 |
|
|
|
355,981 |
|
|
|
183,184 |
|
|
|
192,916 |
|
|
|
250,603 |
|
|
Securities - held to maturity |
|
|
8,487 |
|
|
|
8,403 |
|
|
|
8,673 |
|
|
|
8,614 |
|
|
|
8,557 |
|
|
Equity securities |
|
|
5,044 |
|
|
|
4,981 |
|
|
|
5,025 |
|
|
|
4,925 |
|
|
|
5,006 |
|
|
Loans held for sale |
|
|
2,106 |
|
|
|
683 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loans held for investment |
|
|
3,608,644 |
|
|
|
3,512,143 |
|
|
|
3,196,462 |
|
|
|
2,873,985 |
|
|
|
2,810,856 |
|
|
Allowance for loan and lease losses |
|
|
(27,571 |
) |
|
|
(27,256 |
) |
|
|
(24,547 |
) |
|
|
(20,022 |
) |
|
|
(18,748 |
) |
|
Loans, net |
|
|
3,581,073 |
|
|
|
3,484,887 |
|
|
|
3,171,915 |
|
|
|
2,853,963 |
|
|
|
2,792,108 |
|
|
Assets held for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
71,362 |
|
|
FHLB stock |
|
|
15,943 |
|
|
|
23,109 |
|
|
|
19,223 |
|
|
|
16,508 |
|
|
|
16,006 |
|
|
Premises and equipment, net |
|
|
83,392 |
|
|
|
82,935 |
|
|
|
68,313 |
|
|
|
62,826 |
|
|
|
62,861 |
|
|
Other real estate owned ("OREO"), net |
|
|
2,060 |
|
|
|
2,442 |
|
|
|
2,528 |
|
|
|
9,186 |
|
|
|
9,191 |
|
|
Goodwill and intangible assets, net |
|
|
199,417 |
|
|
|
201,842 |
|
|
|
117,777 |
|
|
|
63,923 |
|
|
|
63,778 |
|
|
Bank-owned life insurance |
|
|
40,509 |
|
|
|
40,339 |
|
|
|
40,168 |
|
|
|
44,534 |
|
|
|
44,364 |
|
|
Deferred tax asset, net |
|
|
8,438 |
|
|
|
8,137 |
|
|
|
8,810 |
|
|
|
8,849 |
|
|
|
8,959 |
|
|
Other assets |
|
|
41,948 |
|
|
|
40,954 |
|
|
|
35,650 |
|
|
|
32,720 |
|
|
|
32,109 |
|
|
Total assets |
|
$ |
4,559,779 |
|
|
$ |
4,537,102 |
|
|
$ |
3,794,631 |
|
|
$ |
3,405,010 |
|
|
$ |
3,499,033 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
$ |
724,527 |
|
|
$ |
697,903 |
|
|
$ |
561,033 |
|
|
$ |
548,991 |
|
|
$ |
564,225 |
|
|
Interest bearing deposits |
|
|
2,725,822 |
|
|
|
2,741,146 |
|
|
|
2,063,909 |
|
|
|
1,984,507 |
|
|
|
2,057,123 |
|
|
Total deposits |
|
|
3,450,349 |
|
|
|
3,439,049 |
|
|
|
2,624,942 |
|
|
|
2,533,498 |
|
|
|
2,621,348 |
|
|
Customer repurchase agreements |
|
|
4,485 |
|
|
|
13,248 |
|
|
|
10,509 |
|
|
|
6,751 |
|
|
|
11,488 |
|
|
Federal Home Loan Bank advances |
|
|
330,000 |
|
|
|
330,000 |
|
|
|
420,000 |
|
|
|
355,000 |
|
|
|
365,000 |
|
|
Subordinated notes |
|
|
48,929 |
|
|
|
48,903 |
|
|
|
48,878 |
|
|
|
48,853 |
|
|
|
48,828 |
|
|
Junior subordinated debentures |
|
|
39,083 |
|
|
|
38,966 |
|
|
|
38,849 |
|
|
|
38,734 |
|
|
|
38,623 |
|
|
Other liabilities |
|
|
50,326 |
|
|
|
50,295 |
|
|
|
44,228 |
|
|
|
19,230 |
|
|
|
22,048 |
|
|
Total liabilities |
|
|
3,923,172 |
|
|
|
3,920,461 |
|
|
|
3,187,406 |
|
|
|
3,002,066 |
|
|
|
3,107,335 |
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock series A |
|
|
— |
|
|
|
4,550 |
|
|
|
4,550 |
|
|
|
4,550 |
|
|
|
4,550 |
|
|
Preferred stock series B |
|
|
— |
|
|
|
5,108 |
|
|
|
5,108 |
|
|
|
5,108 |
|
|
|
5,108 |
|
|
Common stock |
|
|
271 |
|
|
|
264 |
|
|
|
264 |
|
|
|
209 |
|
|
|
209 |
|
|
Additional paid-in-capital |
|
|
469,341 |
|
|
|
458,920 |
|
|
|
457,980 |
|
|
|
265,406 |
|
|
|
264,855 |
|
|
Treasury stock, at cost |
|
|
(2,288 |
) |
|
|
(2,285 |
) |
|
|
(2,254 |
) |
|
|
(1,853 |
) |
|
|
(1,784 |
) |
|
Retained earnings |
|
|
170,486 |
|
|
|
152,401 |
|
|
|
143,426 |
|
|
|
131,234 |
|
|
|
119,356 |
|
|
Accumulated other comprehensive income |
|
|
(1,203 |
) |
|
|
(2,317 |
) |
|
|
(1,849 |
) |
|
|
(1,710 |
) |
|
|
(596 |
) |
|
Total equity |
|
|
636,607 |
|
|
|
616,641 |
|
|
|
607,225 |
|
|
|
402,944 |
|
|
|
391,698 |
|
|
Total liabilities and equity |
|
$ |
4,559,779 |
|
|
$ |
4,537,102 |
|
|
$ |
3,794,631 |
|
|
$ |
3,405,010 |
|
|
$ |
3,499,033 |
|
5
Unaudited consolidated statement of income:
|
|
|
For the Three Months Ended |
|
|
For the Years Ended |
|
||||||||||||||||||||||
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||
|
(Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
44,435 |
|
|
$ |
41,257 |
|
|
$ |
38,148 |
|
|
$ |
36,883 |
|
|
$ |
34,856 |
|
|
$ |
160,723 |
|
|
$ |
121,567 |
|
|
Factored receivables, including fees |
|
|
28,070 |
|
|
|
27,939 |
|
|
|
20,791 |
|
|
|
15,303 |
|
|
|
15,000 |
|
|
|
92,103 |
|
|
|
47,177 |
|
|
Securities |
|
|
2,314 |
|
|
|
1,551 |
|
|
|
1,179 |
|
|
|
1,310 |
|
|
|
1,819 |
|
|
|
6,354 |
|
|
|
6,823 |
|
|
FHLB stock |
|
|
154 |
|
|
|
147 |
|
|
|
101 |
|
|
|
105 |
|
|
|
78 |
|
|
|
507 |
|
|
|
207 |
|
|
Cash deposits |
|
|
877 |
|
|
|
865 |
|
|
|
1,030 |
|
|
|
517 |
|
|
|
464 |
|
|
|
3,289 |
|
|
|
1,450 |
|
|
Total interest income |
|
|
75,850 |
|
|
|
71,759 |
|
|
|
61,249 |
|
|
|
54,118 |
|
|
|
52,217 |
|
|
|
262,976 |
|
|
|
177,224 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
7,931 |
|
|
|
6,219 |
|
|
|
4,631 |
|
|
|
4,277 |
|
|
|
3,884 |
|
|
|
23,058 |
|
|
|
13,082 |
|
|
Subordinated notes |
|
|
839 |
|
|
|
837 |
|
|
|
838 |
|
|
|
837 |
|
|
|
836 |
|
|
|
3,351 |
|
|
|
3,344 |
|
|
Junior subordinated debentures |
|
|
717 |
|
|
|
714 |
|
|
|
713 |
|
|
|
597 |
|
|
|
520 |
|
|
|
2,741 |
|
|
|
1,955 |
|
|
Other borrowings |
|
|
1,482 |
|
|
|
2,207 |
|
|
|
1,810 |
|
|
|
1,277 |
|
|
|
1,181 |
|
|
|
6,776 |
|
|
|
3,159 |
|
|
Total interest expense |
|
|
10,969 |
|
|
|
9,977 |
|
|
|
7,992 |
|
|
|
6,988 |
|
|
|
6,421 |
|
|
|
35,926 |
|
|
|
21,540 |
|
|
Net interest income |
|
|
64,881 |
|
|
|
61,782 |
|
|
|
53,257 |
|
|
|
47,130 |
|
|
|
45,796 |
|
|
|
227,050 |
|
|
|
155,684 |
|
|
Provision for loan losses |
|
|
1,910 |
|
|
|
6,803 |
|
|
|
4,906 |
|
|
|
2,548 |
|
|
|
1,931 |
|
|
|
16,167 |
|
|
|
11,628 |
|
|
Net interest income after provision for loan losses |
|
|
62,971 |
|
|
|
54,979 |
|
|
|
48,351 |
|
|
|
44,582 |
|
|
|
43,865 |
|
|
|
210,883 |
|
|
|
144,056 |
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits |
|
|
1,702 |
|
|
|
1,412 |
|
|
|
1,210 |
|
|
|
1,145 |
|
|
|
1,178 |
|
|
|
5,469 |
|
|
|
4,181 |
|
|
Card income |
|
|
1,999 |
|
|
|
1,877 |
|
|
|
1,394 |
|
|
|
1,244 |
|
|
|
1,122 |
|
|
|
6,514 |
|
|
|
3,822 |
|
|
Net OREO gains (losses) and valuation adjustments |
|
|
37 |
|
|
|
65 |
|
|
|
(528 |
) |
|
|
(88 |
) |
|
|
(764 |
) |
|
|
(514 |
) |
|
|
(850 |
) |
|
Net gains (losses) on sale of securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(272 |
) |
|
|
— |
|
|
|
(272 |
) |
|
|
35 |
|
|
Fee income |
|
|
1,636 |
|
|
|
1,593 |
|
|
|
1,121 |
|
|
|
800 |
|
|
|
658 |
|
|
|
5,150 |
|
|
|
2,503 |
|
|
Insurance commissions |
|
|
846 |
|
|
|
1,113 |
|
|
|
819 |
|
|
|
714 |
|
|
|
857 |
|
|
|
3,492 |
|
|
|
2,981 |
|
|
Asset management fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,717 |
|
|
Gain on sale of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,071 |
|
|
|
— |
|
|
|
1,071 |
|
|
|
20,860 |
|
|
Other |
|
|
574 |
|
|
|
(1 |
) |
|
|
929 |
|
|
|
558 |
|
|
|
947 |
|
|
|
2,060 |
|
|
|
5,407 |
|
|
Total non-interest income |
|
|
6,794 |
|
|
|
6,059 |
|
|
|
4,945 |
|
|
|
5,172 |
|
|
|
3,998 |
|
|
|
22,970 |
|
|
|
40,656 |
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
25,586 |
|
|
|
24,695 |
|
|
|
20,527 |
|
|
|
19,404 |
|
|
|
18,009 |
|
|
|
90,212 |
|
|
|
72,696 |
|
|
Occupancy, furniture and equipment |
|
|
4,402 |
|
|
|
3,553 |
|
|
|
3,014 |
|
|
|
3,054 |
|
|
|
2,728 |
|
|
|
14,023 |
|
|
|
9,833 |
|
|
FDIC insurance and other regulatory assessments |
|
|
184 |
|
|
|
363 |
|
|
|
383 |
|
|
|
199 |
|
|
|
411 |
|
|
|
1,129 |
|
|
|
1,201 |
|
|
Professional fees |
|
|
1,837 |
|
|
|
3,384 |
|
|
|
2,078 |
|
|
|
1,640 |
|
|
|
2,521 |
|
|
|
8,939 |
|
|
|
7,192 |
|
|
Amortization of intangible assets |
|
|
2,438 |
|
|
|
2,064 |
|
|
|
1,361 |
|
|
|
1,117 |
|
|
|
2,309 |
|
|
|
6,980 |
|
|
|
5,201 |
|
|
Advertising and promotion |
|
|
1,036 |
|
|
|
1,609 |
|
|
|
1,300 |
|
|
|
1,029 |
|
|
|
573 |
|
|
|
4,974 |
|
|
|
3,226 |
|
|
Communications and technology |
|
|
4,388 |
|
|
|
7,252 |
|
|
|
3,271 |
|
|
|
3,359 |
|
|
|
2,291 |
|
|
|
18,270 |
|
|
|
8,843 |
|
|
Other |
|
|
7,091 |
|
|
|
6,026 |
|
|
|
5,469 |
|
|
|
4,240 |
|
|
|
4,389 |
|
|
|
22,826 |
|
|
|
15,422 |
|
|
Total non-interest expense |
|
|
46,962 |
|
|
|
48,946 |
|
|
|
37,403 |
|
|
|
34,042 |
|
|
|
33,231 |
|
|
|
167,353 |
|
|
|
123,614 |
|
|
Net income before income tax |
|
|
22,803 |
|
|
|
12,092 |
|
|
|
15,893 |
|
|
|
15,712 |
|
|
|
14,632 |
|
|
|
66,500 |
|
|
|
61,098 |
|
|
Income tax expense |
|
|
4,718 |
|
|
|
2,922 |
|
|
|
3,508 |
|
|
|
3,644 |
|
|
|
8,327 |
|
|
|
14,792 |
|
|
|
24,878 |
|
|
Net income |
|
$ |
18,085 |
|
|
$ |
9,170 |
|
|
$ |
12,385 |
|
|
$ |
12,068 |
|
|
$ |
6,305 |
|
|
$ |
51,708 |
|
|
$ |
36,220 |
|
|
Dividends on preferred stock |
|
|
— |
|
|
|
(195 |
) |
|
|
(193 |
) |
|
|
(190 |
) |
|
|
(194 |
) |
|
|
(578 |
) |
|
|
(774 |
) |
|
Net income available to common stockholders |
|
$ |
18,085 |
|
|
$ |
8,975 |
|
|
$ |
12,192 |
|
|
$ |
11,878 |
|
|
$ |
6,111 |
|
|
$ |
51,130 |
|
|
$ |
35,446 |
|
6
|
|
|
For the Three Months Ended |
|
|
For the Years Ended |
|
||||||||||||||||||||||
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||
|
(Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||||
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income to common stockholders |
|
$ |
18,085 |
|
|
$ |
8,975 |
|
|
$ |
12,192 |
|
|
$ |
11,878 |
|
|
$ |
6,111 |
|
|
$ |
51,130 |
|
|
$ |
35,446 |
|
|
Weighted average common shares outstanding |
|
|
26,666,554 |
|
|
|
26,178,194 |
|
|
|
25,519,108 |
|
|
|
20,721,363 |
|
|
|
20,717,548 |
|
|
|
24,791,448 |
|
|
|
19,133,745 |
|
|
Basic earnings per common share |
|
$ |
0.68 |
|
|
$ |
0.34 |
|
|
$ |
0.48 |
|
|
$ |
0.57 |
|
|
$ |
0.29 |
|
|
$ |
2.06 |
|
|
$ |
1.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income to common stockholders |
|
$ |
18,085 |
|
|
$ |
8,975 |
|
|
$ |
12,192 |
|
|
$ |
11,878 |
|
|
$ |
6,111 |
|
|
$ |
51,130 |
|
|
$ |
35,446 |
|
|
Dilutive effect of preferred stock |
|
|
— |
|
|
|
195 |
|
|
|
193 |
|
|
|
190 |
|
|
|
194 |
|
|
|
578 |
|
|
|
774 |
|
|
Net income to common stockholders - diluted |
|
$ |
18,085 |
|
|
$ |
9,170 |
|
|
$ |
12,385 |
|
|
$ |
12,068 |
|
|
$ |
6,305 |
|
|
$ |
51,708 |
|
|
$ |
36,220 |
|
|
Weighted average common shares outstanding |
|
|
26,666,554 |
|
|
|
26,178,194 |
|
|
|
25,519,108 |
|
|
|
20,721,363 |
|
|
|
20,717,548 |
|
|
|
24,791,448 |
|
|
|
19,133,745 |
|
|
Dilutive effects of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assumed conversion of Preferred A |
|
|
89,240 |
|
|
|
315,773 |
|
|
|
315,773 |
|
|
|
315,773 |
|
|
|
315,773 |
|
|
|
258,674 |
|
|
|
315,773 |
|
|
Assumed conversion of Preferred B |
|
|
100,176 |
|
|
|
354,471 |
|
|
|
354,471 |
|
|
|
354,471 |
|
|
|
354,471 |
|
|
|
290,375 |
|
|
|
354,471 |
|
|
Assumed exercises of stock warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
82,567 |
|
|
Assumed exercises of stock options |
|
|
76,219 |
|
|
|
90,320 |
|
|
|
86,821 |
|
|
|
83,872 |
|
|
|
56,359 |
|
|
|
84,126 |
|
|
|
45,653 |
|
|
Restricted stock awards |
|
|
46,457 |
|
|
|
45,796 |
|
|
|
37,417 |
|
|
|
85,045 |
|
|
|
74,318 |
|
|
|
52,851 |
|
|
|
68,079 |
|
|
Restricted stock units |
|
|
1,303 |
|
|
|
7,276 |
|
|
|
2,288 |
|
|
|
— |
|
|
|
— |
|
|
|
3,039 |
|
|
|
— |
|
|
Performance stock units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Weighted average shares outstanding - diluted |
|
|
26,979,949 |
|
|
|
26,991,830 |
|
|
|
26,315,878 |
|
|
|
21,560,524 |
|
|
|
21,518,469 |
|
|
|
25,480,513 |
|
|
|
20,000,288 |
|
|
Diluted earnings per common share |
|
$ |
0.67 |
|
|
$ |
0.34 |
|
|
$ |
0.47 |
|
|
$ |
0.56 |
|
|
$ |
0.29 |
|
|
$ |
2.03 |
|
|
$ |
1.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Years Ended |
|
||||||||||||||||||||||
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||
|
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||||
|
Assumed conversion of Preferred A |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Assumed conversion of Preferred B |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Stock options |
|
|
51,952 |
|
|
|
51,952 |
|
|
|
51,952 |
|
|
|
— |
|
|
|
57,926 |
|
|
|
51,952 |
|
|
|
57,926 |
|
|
Restricted stock awards |
|
|
14,513 |
|
|
|
14,513 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Restricted stock units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Performance stock units |
|
|
59,658 |
|
|
|
59,658 |
|
|
|
59,658 |
|
|
|
— |
|
|
|
— |
|
|
|
59,658 |
|
|
|
— |
|
7
Loans held for investment summarized as of:
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|||||
|
(Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Commercial real estate |
|
$ |
992,080 |
|
|
$ |
906,494 |
|
|
$ |
766,839 |
|
|
$ |
781,006 |
|
|
$ |
745,893 |
|
|
Construction, land development, land |
|
|
179,591 |
|
|
|
190,920 |
|
|
|
147,852 |
|
|
|
143,876 |
|
|
|
134,812 |
|
|
1-4 family residential properties |
|
|
190,185 |
|
|
|
194,752 |
|
|
|
122,653 |
|
|
|
122,979 |
|
|
|
125,827 |
|
|
Farmland |
|
|
170,540 |
|
|
|
177,313 |
|
|
|
177,060 |
|
|
|
184,064 |
|
|
|
180,141 |
|
|
Commercial |
|
|
1,114,971 |
|
|
|
1,123,598 |
|
|
|
1,006,443 |
|
|
|
930,283 |
|
|
|
920,812 |
|
|
Factored receivables |
|
|
617,791 |
|
|
|
611,285 |
|
|
|
603,812 |
|
|
|
397,145 |
|
|
|
374,410 |
|
|
Consumer |
|
|
29,822 |
|
|
|
31,423 |
|
|
|
28,775 |
|
|
|
29,244 |
|
|
|
31,131 |
|
|
Mortgage warehouse |
|
|
313,664 |
|
|
|
276,358 |
|
|
|
343,028 |
|
|
|
285,388 |
|
|
|
297,830 |
|
|
Total loans |
|
$ |
3,608,644 |
|
|
$ |
3,512,143 |
|
|
$ |
3,196,462 |
|
|
$ |
2,873,985 |
|
|
$ |
2,810,856 |
|
A portion of our total loans held for investment portfolio consists of traditional community bank loans as well as commercial finance products offered under our commercial finance brands on a nationwide basis. Commercial finance loans are further summarized below:
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|||||
|
(Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Equipment |
|
$ |
352,037 |
|
|
$ |
323,832 |
|
|
$ |
290,314 |
|
|
$ |
260,502 |
|
|
$ |
254,119 |
|
|
Asset based lending (General) |
|
|
214,110 |
|
|
|
273,096 |
|
|
|
261,412 |
|
|
|
230,314 |
|
|
|
213,471 |
|
|
Premium finance |
|
|
72,302 |
|
|
|
75,293 |
|
|
|
51,416 |
|
|
|
48,561 |
|
|
|
55,520 |
|
|
Factored receivables |
|
|
617,791 |
|
|
|
611,285 |
|
|
|
603,812 |
|
|
|
397,145 |
|
|
|
374,410 |
|
|
Commercial finance |
|
$ |
1,256,240 |
|
|
$ |
1,283,506 |
|
|
$ |
1,206,954 |
|
|
$ |
936,522 |
|
|
$ |
897,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial finance % of total loans |
|
|
35 |
% |
|
|
37 |
% |
|
|
38 |
% |
|
|
33 |
% |
|
|
32 |
% |
Additional information pertaining to our loan portfolio, summarized as of and for the quarters ended:
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|||||
|
(Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Average community banking |
|
$ |
2,268,262 |
|
|
$ |
2,039,624 |
|
|
$ |
1,897,678 |
|
|
$ |
1,816,921 |
|
|
$ |
1,637,195 |
|
|
Average commercial finance(1) |
|
|
1,264,209 |
|
|
|
1,254,095 |
|
|
|
1,024,369 |
|
|
|
949,938 |
|
|
|
921,579 |
|
|
Average total loans |
|
$ |
3,532,471 |
|
|
$ |
3,293,719 |
|
|
$ |
2,922,047 |
|
|
$ |
2,766,859 |
|
|
$ |
2,558,774 |
|
|
Community banking yield |
|
|
5.78 |
% |
|
|
5.68 |
% |
|
|
5.80 |
% |
|
|
5.81 |
% |
|
|
5.87 |
% |
|
Commercial finance yield(1) |
|
|
12.39 |
% |
|
|
12.66 |
% |
|
|
12.08 |
% |
|
|
11.17 |
% |
|
|
11.03 |
% |
|
Total loan yield |
|
|
8.14 |
% |
|
|
8.33 |
% |
|
|
8.09 |
% |
|
|
7.65 |
% |
|
|
7.73 |
% |
(1) Includes assets held for sale for the periods ended March 31, 2018 and December 31, 2017
8
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:
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|||||
|
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Factored receivable period end balance |
|
$ |
588,750,000 |
|
|
$ |
579,985,000 |
|
|
$ |
577,548,000 |
|
|
$ |
372,771,000 |
|
|
$ |
346,293,000 |
|
|
Yield on average receivable balance |
|
|
18.24 |
% |
|
|
18.96 |
% |
|
|
18.70 |
% |
|
|
17.40 |
% |
|
|
16.91 |
% |
|
Rolling twelve quarter annual charge-off rate |
|
|
0.37 |
% |
|
|
0.38 |
% |
|
|
0.41 |
% |
|
|
0.50 |
% |
|
|
0.41 |
% |
|
Factored receivables - transportation concentration |
|
|
83 |
% |
|
|
83 |
% |
|
|
84 |
% |
|
|
86 |
% |
|
|
84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, including fees |
|
$ |
27,578,000 |
|
|
$ |
27,420,000 |
|
|
$ |
20,314,000 |
|
|
$ |
14,780,000 |
|
|
$ |
14,518,000 |
|
|
Non-interest income |
|
|
1,032,000 |
|
|
|
942,000 |
|
|
|
920,000 |
|
|
|
590,000 |
|
|
|
535,000 |
|
|
Factored receivable total revenue |
|
|
28,610,000 |
|
|
|
28,362,000 |
|
|
|
21,234,000 |
|
|
|
15,370,000 |
|
|
|
15,053,000 |
|
|
Average net funds employed |
|
|
547,996,000 |
|
|
|
525,499,000 |
|
|
|
398,096,000 |
|
|
|
316,488,000 |
|
|
|
309,614,000 |
|
|
Yield on average net funds employed |
|
|
20.71 |
% |
|
|
21.41 |
% |
|
|
21.39 |
% |
|
|
19.70 |
% |
|
|
19.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable purchased |
|
$ |
1,541,332,000 |
|
|
$ |
1,503,049,000 |
|
|
$ |
1,162,810,000 |
|
|
$ |
912,336,000 |
|
|
$ |
872,373,000 |
|
|
Number of invoices purchased |
|
|
882,042 |
|
|
|
836,771 |
|
|
|
656,429 |
|
|
|
521,906 |
|
|
|
511,879 |
|
|
Average invoice size |
|
$ |
1,747 |
|
|
$ |
1,796 |
|
|
$ |
1,771 |
|
|
$ |
1,751 |
|
|
$ |
1,705 |
|
|
Average invoice size - transportation |
|
$ |
1,625 |
|
|
$ |
1,666 |
|
|
$ |
1,695 |
|
|
$ |
1,662 |
|
|
$ |
1,647 |
|
|
Average invoice size - non-transportation |
|
$ |
3,209 |
|
|
$ |
3,267 |
|
|
$ |
2,522 |
|
|
$ |
2,627 |
|
|
$ |
2,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new clients |
|
|
259 |
|
|
|
422 |
|
|
|
2,072 |
|
|
|
280 |
|
|
|
233 |
|
|
Period end clients |
|
|
6,191 |
|
|
|
5,932 |
|
|
|
5,510 |
|
|
|
3,438 |
|
|
|
3,158 |
|
Deposits summarized as of:
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
|||||
|
(Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
|||||
|
Non-interest bearing demand |
|
$ |
724,527 |
|
|
$ |
697,903 |
|
|
$ |
561,033 |
|
|
$ |
548,991 |
|
|
$ |
564,225 |
|
|
|
Interest bearing demand |
|
|
615,704 |
|
|
|
608,775 |
|
|
|
358,246 |
|
|
|
392,947 |
|
|
|
403,244 |
|
|
|
Individual retirement accounts |
|
|
115,583 |
|
|
|
118,459 |
|
|
|
101,380 |
|
|
|
105,558 |
|
|
|
108,505 |
|
|
|
Money market |
|
|
443,663 |
|
|
|
413,402 |
|
|
|
268,699 |
|
|
|
283,354 |
|
|
|
283,969 |
|
|
|
Savings |
|
|
369,389 |
|
|
|
373,062 |
|
|
|
239,127 |
|
|
|
244,103 |
|
|
|
235,296 |
|
|
|
Certificates of deposit |
|
|
835,127 |
|
|
|
854,048 |
|
|
|
751,290 |
|
|
|
783,651 |
|
|
|
837,384 |
|
|
|
Brokered deposits |
|
|
346,356 |
|
|
|
373,400 |
|
|
|
345,167 |
|
|
|
174,894 |
|
|
|
188,725 |
|
|
|
Total deposits |
|
$ |
3,450,349 |
|
|
$ |
3,439,049 |
|
|
$ |
2,624,942 |
|
|
$ |
2,533,498 |
|
|
$ |
2,621,348 |
|
|
9
Net interest margin summarized for the three months ended:
|
|
|
December 31, 2018 |
|
|
September 30, 2018 |
|
||||||||||||||||||
|
|
|
Average |
|
|
|
|
|
|
Average |
|
|
Average |
|
|
|
|
|
|
Average |
|
||||
|
(Dollars in thousands) |
|
Balance |
|
|
Interest |
|
|
Rate |
|
|
Balance |
|
|
Interest |
|
|
Rate |
|
||||||
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning cash balances |
|
$ |
152,212 |
|
|
$ |
877 |
|
|
|
2.29 |
% |
|
$ |
156,876 |
|
|
$ |
865 |
|
|
|
2.19 |
% |
|
Taxable securities |
|
|
235,234 |
|
|
|
1,674 |
|
|
|
2.82 |
% |
|
|
183,238 |
|
|
|
1,207 |
|
|
|
2.61 |
% |
|
Tax-exempt securities |
|
|
123,575 |
|
|
|
640 |
|
|
|
2.05 |
% |
|
|
66,208 |
|
|
|
344 |
|
|
|
2.06 |
% |
|
FHLB stock |
|
|
16,426 |
|
|
|
154 |
|
|
|
3.72 |
% |
|
|
20,984 |
|
|
|
147 |
|
|
|
2.78 |
% |
|
Loans |
|
|
3,532,471 |
|
|
|
72,505 |
|
|
|
8.14 |
% |
|
|
3,293,719 |
|
|
|
69,196 |
|
|
|
8.33 |
% |
|
Total interest earning assets |
|
$ |
4,059,918 |
|
|
$ |
75,850 |
|
|
|
7.41 |
% |
|
$ |
3,721,025 |
|
|
$ |
71,759 |
|
|
|
7.65 |
% |
|
Non-interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
429,000 |
|
|
|
|
|
|
|
|
|
|
|
339,535 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
4,488,918 |
|
|
|
|
|
|
|
|
|
|
$ |
4,060,560 |
|
|
|
|
|
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand |
|
$ |
613,872 |
|
|
$ |
417 |
|
|
|
0.27 |
% |
|
$ |
418,226 |
|
|
$ |
200 |
|
|
|
0.19 |
% |
|
Individual retirement accounts |
|
|
116,575 |
|
|
|
385 |
|
|
|
1.31 |
% |
|
|
105,774 |
|
|
|
339 |
|
|
|
1.27 |
% |
|
Money market |
|
|
430,864 |
|
|
|
1,312 |
|
|
|
1.21 |
% |
|
|
303,843 |
|
|
|
594 |
|
|
|
0.78 |
% |
|
Savings |
|
|
373,650 |
|
|
|
159 |
|
|
|
0.17 |
% |
|
|
272,230 |
|
|
|
60 |
|
|
|
0.09 |
% |
|
Certificates of deposit |
|
|
862,500 |
|
|
|
3,749 |
|
|
|
1.72 |
% |
|
|
793,685 |
|
|
|
3,068 |
|
|
|
1.53 |
% |
|
Brokered deposits |
|
|
347,498 |
|
|
|
1,909 |
|
|
|
2.18 |
% |
|
|
384,337 |
|
|
|
1,958 |
|
|
|
2.02 |
% |
|
Total deposits |
|
|
2,744,959 |
|
|
|
7,931 |
|
|
|
1.15 |
% |
|
|
2,278,095 |
|
|
|
6,219 |
|
|
|
1.08 |
% |
|
Subordinated notes |
|
|
48,914 |
|
|
|
839 |
|
|
|
6.81 |
% |
|
|
48,890 |
|
|
|
837 |
|
|
|
6.79 |
% |
|
Junior subordinated debentures |
|
|
39,011 |
|
|
|
717 |
|
|
|
7.29 |
% |
|
|
38,905 |
|
|
|
714 |
|
|
|
7.28 |
% |
|
Other borrowings |
|
|
262,391 |
|
|
|
1,482 |
|
|
|
2.24 |
% |
|
|
425,781 |
|
|
|
2,207 |
|
|
|
2.06 |
% |
|
Total interest bearing liabilities |
|
$ |
3,095,275 |
|
|
$ |
10,969 |
|
|
|
1.41 |
% |
|
$ |
2,791,671 |
|
|
$ |
9,977 |
|
|
|
1.42 |
% |
|
Non-interest bearing liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand deposits |
|
|
714,884 |
|
|
|
|
|
|
|
|
|
|
|
608,245 |
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
46,633 |
|
|
|
|
|
|
|
|
|
|
|
41,961 |
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
632,126 |
|
|
|
|
|
|
|
|
|
|
|
618,683 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
4,488,918 |
|
|
|
|
|
|
|
|
|
|
$ |
4,060,560 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
64,881 |
|
|
|
|
|
|
|
|
|
|
$ |
61,782 |
|
|
|
|
|
|
Interest spread |
|
|
|
|
|
|
|
|
|
|
6.00 |
% |
|
|
|
|
|
|
|
|
|
|
6.23 |
% |
|
Net interest margin |
|
|
|
|
|
|
|
|
|
|
6.34 |
% |
|
|
|
|
|
|
|
|
|
|
6.59 |
% |
10
Metrics and non-GAAP financial reconciliation:
|
|
|
As of and for the Three Months Ended |
|
|
As of and for the Years Ended |
|
||||||||||||||||||||||
|
(Dollars in thousands, |
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||
|
except per share amounts) |
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||||
|
Net income available to common stockholders |
|
$ |
18,085 |
|
|
$ |
8,975 |
|
|
$ |
12,192 |
|
|
$ |
11,878 |
|
|
$ |
6,111 |
|
|
$ |
51,130 |
|
|
$ |
35,446 |
|
|
Gain on sale of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,071 |
) |
|
|
— |
|
|
|
(1,071 |
) |
|
|
(20,860 |
) |
|
Incremental bonus related to transaction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,814 |
|
|
Transaction related costs |
|
|
— |
|
|
|
5,871 |
|
|
|
1,094 |
|
|
|
— |
|
|
|
1,688 |
|
|
|
6,965 |
|
|
|
2,013 |
|
|
Tax effect of adjustments |
|
|
— |
|
|
|
(1,392 |
) |
|
|
(257 |
) |
|
|
248 |
|
|
|
(601 |
) |
|
|
(1,401 |
) |
|
|
5,153 |
|
|
Adjusted net income available to common stockholders |
|
$ |
18,085 |
|
|
$ |
13,454 |
|
|
$ |
13,029 |
|
|
$ |
11,055 |
|
|
$ |
7,198 |
|
|
$ |
55,623 |
|
|
$ |
26,566 |
|
|
Dilutive effect of convertible preferred stock |
|
|
— |
|
|
|
195 |
|
|
|
193 |
|
|
|
190 |
|
|
|
194 |
|
|
|
578 |
|
|
|
774 |
|
|
Adjusted net income available to common stockholders - diluted |
|
$ |
18,085 |
|
|
$ |
13,649 |
|
|
$ |
13,222 |
|
|
$ |
11,245 |
|
|
$ |
7,392 |
|
|
$ |
56,201 |
|
|
$ |
27,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - diluted |
|
|
26,979,949 |
|
|
|
26,991,830 |
|
|
|
26,315,878 |
|
|
|
21,560,524 |
|
|
|
21,518,469 |
|
|
|
25,480,513 |
|
|
|
20,000,288 |
|
|
Adjusted effects of assumed Preferred Stock conversion |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted weighted average shares outstanding - diluted |
|
|
26,979,949 |
|
|
|
26,991,830 |
|
|
|
26,315,878 |
|
|
|
21,560,524 |
|
|
|
21,518,469 |
|
|
|
25,480,513 |
|
|
|
20,000,288 |
|
|
Adjusted diluted earnings per common share |
|
$ |
0.67 |
|
|
$ |
0.51 |
|
|
$ |
0.50 |
|
|
$ |
0.52 |
|
|
$ |
0.34 |
|
|
$ |
2.21 |
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common stockholders |
|
$ |
18,085 |
|
|
$ |
8,975 |
|
|
$ |
12,192 |
|
|
$ |
11,878 |
|
|
$ |
6,111 |
|
|
$ |
51,130 |
|
|
$ |
35,446 |
|
|
Average tangible common equity |
|
|
428,748 |
|
|
|
470,553 |
|
|
|
491,492 |
|
|
|
326,614 |
|
|
|
330,819 |
|
|
|
429,745 |
|
|
|
283,561 |
|
|
Return on average tangible common equity |
|
|
16.73 |
% |
|
|
7.57 |
% |
|
|
9.95 |
% |
|
|
14.75 |
% |
|
|
7.33 |
% |
|
|
11.90 |
% |
|
|
12.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
64,881 |
|
|
$ |
61,782 |
|
|
$ |
53,257 |
|
|
$ |
47,130 |
|
|
$ |
45,796 |
|
|
$ |
227,050 |
|
|
$ |
155,684 |
|
|
Non-interest income |
|
|
6,794 |
|
|
|
6,059 |
|
|
|
4,945 |
|
|
|
5,172 |
|
|
|
3,998 |
|
|
|
22,970 |
|
|
|
40,656 |
|
|
Operating revenue |
|
|
71,675 |
|
|
|
67,841 |
|
|
|
58,202 |
|
|
|
52,302 |
|
|
|
49,794 |
|
|
|
250,020 |
|
|
|
196,340 |
|
|
Gain on sale of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,071 |
) |
|
|
— |
|
|
|
(1,071 |
) |
|
|
(20,860 |
) |
|
Adjusted operating revenue |
|
$ |
71,675 |
|
|
$ |
67,841 |
|
|
$ |
58,202 |
|
|
$ |
51,231 |
|
|
$ |
49,794 |
|
|
$ |
248,949 |
|
|
$ |
175,480 |
|
|
Non-interest expenses |
|
$ |
46,962 |
|
|
$ |
48,946 |
|
|
$ |
37,403 |
|
|
$ |
34,042 |
|
|
$ |
33,231 |
|
|
$ |
167,353 |
|
|
$ |
123,614 |
|
|
Incremental bonus related to transaction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,814 |
) |
|
Transaction related costs |
|
|
— |
|
|
|
(5,871 |
) |
|
|
(1,094 |
) |
|
|
— |
|
|
|
(1,688 |
) |
|
|
(6,965 |
) |
|
|
(2,013 |
) |
|
Adjusted non-interest expenses |
|
$ |
46,962 |
|
|
$ |
43,075 |
|
|
$ |
36,309 |
|
|
$ |
34,042 |
|
|
$ |
31,543 |
|
|
$ |
160,388 |
|
|
$ |
116,787 |
|
|
Adjusted efficiency ratio |
|
|
65.52 |
% |
|
|
63.49 |
% |
|
|
62.38 |
% |
|
|
66.45 |
% |
|
|
63.35 |
% |
|
|
64.43 |
% |
|
|
66.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net non-interest expense to average assets ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses |
|
$ |
46,962 |
|
|
$ |
48,946 |
|
|
$ |
37,403 |
|
|
$ |
34,042 |
|
|
$ |
33,231 |
|
|
$ |
167,353 |
|
|
$ |
123,614 |
|
|
Incremental bonus related to transaction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,814 |
) |
|
Transaction related costs |
|
|
— |
|
|
|
(5,871 |
) |
|
|
(1,094 |
) |
|
|
— |
|
|
|
(1,688 |
) |
|
|
(6,965 |
) |
|
|
(2,013 |
) |
|
Adjusted non-interest expenses |
|
$ |
46,962 |
|
|
$ |
43,075 |
|
|
$ |
36,309 |
|
|
$ |
34,042 |
|
|
$ |
31,543 |
|
|
$ |
160,388 |
|
|
$ |
116,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest income |
|
$ |
6,794 |
|
|
$ |
6,059 |
|
|
$ |
4,945 |
|
|
$ |
5,172 |
|
|
$ |
3,998 |
|
|
$ |
22,970 |
|
|
$ |
40,656 |
|
|
Gain on sale of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,071 |
) |
|
|
— |
|
|
|
(1,071 |
) |
|
|
(20,860 |
) |
|
Adjusted non-interest income |
|
$ |
6,794 |
|
|
$ |
6,059 |
|
|
$ |
4,945 |
|
|
$ |
4,101 |
|
|
$ |
3,998 |
|
|
$ |
21,899 |
|
|
$ |
19,796 |
|
|
Adjusted net non-interest expenses |
|
$ |
40,168 |
|
|
$ |
37,016 |
|
|
$ |
31,364 |
|
|
$ |
29,941 |
|
|
$ |
27,545 |
|
|
$ |
138,489 |
|
|
$ |
96,991 |
|
|
Average total assets |
|
$ |
4,488,918 |
|
|
$ |
4,060,560 |
|
|
$ |
3,628,960 |
|
|
$ |
3,410,883 |
|
|
$ |
3,181,697 |
|
|
$ |
3,900,728 |
|
|
$ |
2,844,916 |
|
|
Adjusted net non-interest expense to average assets ratio |
|
|
3.55 |
% |
|
|
3.62 |
% |
|
|
3.47 |
% |
|
|
3.56 |
% |
|
|
3.43 |
% |
|
|
3.55 |
% |
|
|
3.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
636,607 |
|
|
$ |
616,641 |
|
|
$ |
607,225 |
|
|
$ |
402,944 |
|
|
$ |
391,698 |
|
|
$ |
636,607 |
|
|
$ |
391,698 |
|
|
Preferred stock liquidation preference |
|
|
— |
|
|
|
(9,658 |
) |
|
|
(9,658 |
) |
|
|
(9,658 |
) |
|
|
(9,658 |
) |
|
|
— |
|
|
|
(9,658 |
) |
|
Total common stockholders' equity |
|
|
636,607 |
|
|
|
606,983 |
|
|
|
597,567 |
|
|
|
393,286 |
|
|
|
382,040 |
|
|
|
636,607 |
|
|
|
382,040 |
|
|
Goodwill and other intangibles |
|
|
(199,417 |
) |
|
|
(201,842 |
) |
|
|
(117,777 |
) |
|
|
(63,923 |
) |
|
|
(63,778 |
) |
|
|
(199,417 |
) |
|
|
(63,778 |
) |
|
Tangible common stockholders' equity |
|
$ |
437,190 |
|
|
$ |
405,141 |
|
|
$ |
479,790 |
|
|
$ |
329,363 |
|
|
$ |
318,262 |
|
|
$ |
437,190 |
|
|
$ |
318,262 |
|
|
Common shares outstanding |
|
|
26,949,936 |
|
|
|
26,279,761 |
|
|
|
26,260,785 |
|
|
|
20,824,509 |
|
|
|
20,820,445 |
|
|
|
26,949,936 |
|
|
|
20,820,445 |
|
|
Tangible book value per share |
|
$ |
16.22 |
|
|
$ |
15.42 |
|
|
$ |
18.27 |
|
|
$ |
15.82 |
|
|
$ |
15.29 |
|
|
$ |
16.22 |
|
|
$ |
15.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at end of period |
|
$ |
4,559,779 |
|
|
$ |
4,537,102 |
|
|
$ |
3,794,631 |
|
|
$ |
3,405,010 |
|
|
$ |
3,499,033 |
|
|
$ |
4,559,779 |
|
|
$ |
3,499,033 |
|
|
Goodwill and other intangibles |
|
|
(199,417 |
) |
|
|
(201,842 |
) |
|
|
(117,777 |
) |
|
|
(63,923 |
) |
|
|
(63,778 |
) |
|
|
(199,417 |
) |
|
|
(63,778 |
) |
|
Adjusted total assets at period end |
|
$ |
4,360,362 |
|
|
$ |
4,335,260 |
|
|
$ |
3,676,854 |
|
|
$ |
3,341,087 |
|
|
$ |
3,435,255 |
|
|
$ |
4,360,362 |
|
|
$ |
3,435,255 |
|
|
Tangible common stockholders' equity ratio |
|
|
10.03 |
% |
|
|
9.35 |
% |
|
|
13.05 |
% |
|
|
9.86 |
% |
|
|
9.26 |
% |
|
|
10.03 |
% |
|
|
9.26 |
% |
11
|
|
• |
“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 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 Years Ended |
|
||||||||||||||||||||||
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||
|
(Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||||
|
Loan discount accretion |
|
$ |
1,411 |
|
|
$ |
1,271 |
|
|
$ |
3,637 |
|
|
$ |
1,977 |
|
|
$ |
1,697 |
|
|
$ |
8,296 |
|
|
$ |
7,071 |
|
|
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
12
Q4 2018 earnings release January 22, 2019 Exhibit 99.2
disclaimer Forward-Looking Statements This presentation 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., the operating assets of Interstate Capital Corporation and certain of its affiliates, Valley Bancorp, Inc., and nine branches from Independent Bank in Colorado) 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 13, 2018. Non-GAAP Financial Measures This presentation 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 the presentation. Numbers in this presentation may not sum due to rounding. Unless otherwise referenced, all data presented is as of December 31, 2018. PAGE
company OVERVIEW PAGE Triumph Bancorp, Inc. (NASDAQ: TBK) (“Triumph”) is a financial holding company headquartered in Dallas, Texas. Triumph offers a diversified line of community banking and commercial finance products through its bank subsidiary, TBK Bank, SSB. www.triumphbancorp.com Community Banking Full suite of deposit products and services focused on growing core deposits Focused on business lending including CRE Limited consumer lending and single-family mortgage origination Differentiated Model Focus on core deposit funding as well as commercial finance produces top decile net interest margins Multiple product types and broad geographic footprint creates a more diverse business model than other banks our size Executive team and business unit leaders have deep experience in much larger financial institutions Commercial Finance Factoring, asset based lending, equipment finance, and premium finance We focus on what we know: executives leading these platforms all have decades of experience in their respective markets Credit risk is well diversified across industries, product type, and geography
PLATFORM OVERVIEW - LENDING PAGE 24% Texas Geographic Lending Concentrations1 as of December 31, 2018 1 Excludes factored receivables 27% Colorado 1% Kansas 7% Iowa 15% Illinois 5% New Mexico
PLATFORM OVERVIEW – branch network PAGE Western division 30 branches in Colorado 2 branches in western Kansas MIDwest division 10 branches in the Quad Cities metroplex 8 branches throughout northern and central Illinois Dallas Corporate Headquarters 1 branch (Primarily CDs) Currently constructing a full service branch Mountain division 7 branches in Colorado 3 branches in New Mexico
LOAN PORTFOLIO DETAIL PAGE Community Banking Commercial Finance Loans Held for Investment Chart data labels – dollars in millions 43100 43190 43281 43373 43465 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q3 2018 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Community Banking 1,913.336 1,937.463 1,989.508 2,228.6370000000002 2,352.404 Asset based lending (Healthcare) 79.668000000000006 78.207999999999998 68.605999999999995 67.888999999999996 0 Equipment 254.119 260.50200000000001 290.31400000000002 323.83199999999999 352.03699999999998 0.28023068840348975 Commercial Finance: Asset based lending (General) 213.471 230.31399999999999 261.41199999999998 273.096 214.11 0.17043717760937402 Premium Finance 55.52 48.561 51.415999999999997 75.293000000000006 72.302000000000007 5.7554288989365092E-2 Factored receivables 374.41 397.14499999999998 603.81200000000001 611.28499999999997 617.79100000000005 0.49177784499777116 Q3 2018 Commercial Finance Products $1,256.24 Community Banking $2,352.404 Real Estate & Farmland $1,532.396 Commercial Real Estate $992.08 Commercial $476.52200000000005 Construction, Land Development, Land $179.59100000000001 Consumer $29.821999999999999 1-4 Family Residential Properties $190.185 Mortgage Warehouse $313.66399999999999 Farmland $170.54 Commercial $476.52200000000005 Consumer $29.821999999999999 Community Banking Mortgage Warehouse $313.66399999999999 Agriculture 142.9 <<<<<<<<<< MANUAL UPDATE REAL ESTATE Commercial Real Estate $992.1 Construction, Land & Development $179.6 1-4 Family Residential $190.2 Farmland $170.5 COMMERCIAL Agriculture $142.9 General $333.6 CONSUMER $29.8 MORTGAGE WAREHOUSE $313.7 FACTORED RECEIVABLES $2,352.4 Triumph Business Capital $588.79999999999995 Triumph Commercial Finance $29 <<<<<<<<<< MANUAL UPDATE EQUIPMENT FINANCE $352 ASSET BASED LENDING $214.1 PREMIUM FINANCE $72.3 $1,256.1999999999998 43100 43190 43281 43373 43465 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q3 2018 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Community Banking 1,913.336 1,937.463 1,989.508 2,228.6370000000002 2,352.404 Asset based lending (Healthcare) 79.668000000000006 78.207999999999998 68.605999999999995 67.888999999999996 0 Equipment 254.119 260.50200000000001 290.31400000000002 323.83199999999999 352.03699999999998 0.28023068840348975 Commercial Finance: Asset based lending (General) 213.471 230.31399999999999 261.41199999999998 273.096 214.11 0.17043717760937402 Premium Finance 55.52 48.561 51.415999999999997 75.293000000000006 72.302000000000007 5.7554288989365092E-2 Factored receivables 374.41 397.14499999999998 603.81200000000001 611.28499999999997 617.79100000000005 0.49177784499777116 Q3 2018 Commercial Finance Products $1,256.24 Community Banking $2,352.404 Real Estate & Farmland $1,532.396 Commercial Real Estate $992.08 Commercial $476.52200000000005 Construction, Land Development, Land $179.59100000000001 Consumer $29.821999999999999 1-4 Family Residential Properties $190.185 Mortgage Warehouse $313.66399999999999 Farmland $170.54 Commercial $476.52200000000005 Consumer $29.821999999999999 Community Banking Mortgage Warehouse $313.66399999999999 Agriculture 142.9 <<<<<<<<<< MANUAL UPDATE REAL ESTATE Commercial Real Estate $992.1 Construction, Land & Development $179.6 1-4 Family Residential $190.2 Farmland $170.5 COMMERCIAL Agriculture $142.9 General $333.6 CONSUMER $29.8 MORTGAGE WAREHOUSE $313.7 FACTORED RECEIVABLES $2,352.4 Triumph Business Capital $588.79999999999995 Triumph Commercial Finance $29 <<<<<<<<<< MANUAL UPDATE EQUIPMENT FINANCE $352 ASSET BASED LENDING $214.1 PREMIUM FINANCE $72.3 $1,256.1999999999998
Return on Average Assets (“ROAA”) 1.60% Goal: > 1.80% Net Overhead Ratio Net Interest Income to Average Assets Credit Costs Pre-Provision Net Revenue Taxes 5.73% 3.55% 2.18% Goal > 2.70% 0.17% Goal: < 0.30% 0.41% Goal: ~0.50% Long term performance goals vs Actual Q4 PAGE Annualized performance metrics presented are for the three months ended December 31, 2018. Reconciliations of these financial measures can be found at the end of the presentation. Goal = 5.50 - 6.00% Goal = 2.80 - 3.30%
INVESTMENT CONSIDERATIONS PAGE Coverage Analysts: Matthew Olney – Stephens, Inc. Brad Milsaps – Sandler O’Neill & Partners Brady Gailey – Keefe, Bruyette & Woods, a Stifel Company Jared Shaw – Wells Fargo Securities, LLC Stephen Moss – B. Riley FBR, Inc. Brett Rabatin – Piper Jaffray & Co. Gary Tenner – D.A. Davidson & Co.
Q4 2018 HIGHLIGHTS and recent developments PAGE Diluted earnings per share of $0.67 for the quarter Total loans held for investment portfolio growth of $96.5 million Commercial real estate growth of $85.6 million Mortgage warehouse growth of $37.3 million Commercial finance loan portfolio decrease of $27.3 million, including a $59.0 million decrease in asset-based lending, partially offset by a $28.2 million increase in equipment lending $18.1 million Net income to common stockholders COMMERCIAL FINANCE LOAN GROWTH (2.1)% NIM 6.34% Net Interest Margin1 ROAA 1.60% Return on Average Assets TCE/TA 10.03% Tangible Common Equity / Tangible Assets2 1 Includes discount accretion on purchased loans of $1,411 in Q4 2018 2 Reconciliations of non-GAAP financial measures can be found at the end of the presentation
loan yields and NET INTEREST MARGIN PAGE Loan yields and Net Interest Margin *Includes discount accretion on purchased loans of $1,697 in 4Q17, $1,977 in 1Q18, $3,637 in 2Q18, $1,271 in 3Q18, and $1,411 in 4Q18 (dollars in thousands) **SNL U.S. Bank $1-$5B: Includes all Major Exchange (NYSE, NYSE MKT, NASDAQ) Banks in SNL’s coverage universe with $1B to $5B in Assets. Q4 2018 SNL data not available
TRIUMPH BUSINESS CAPITAL FACTORING PAGE Yield of 18.24% in the current quarter Average annual charge-off rate of 0.37% over the past 3 years 6,191 factoring clients at December 31, 2018 * On June 2, 2018, we acquired the transportation factoring assets of Interstate Capital Corporation and certain of its affiliates
Annual Gross Revenues (8% GDP) $750 Billion : 4 Million Trucks For-Hire $400 Billion : 2.6 Million Trucks *This data utilizes high-level estimates from multiple data sources including FMCSA authority registrations, carrier reported numbers of power units, mercantile credit bureau reports and Triumph’s own portfolio data Triumph purchases ~10% of the available invoices from our ~$60 billion target market Contract $225 Billion 3PLs/Broker $175 Billion Fleet Size Nbr. Carriers Nbr. Trucks 1 to 5 189,200 300,000 6 to 25 32,200 350,000 26 to 100 8,400 400,000 101 to 1,000 2,500 550,000 Over 1,000 200 1,000,000 All Carriers 232,000 2,600,000 Annual Revenue Nbr. 3 PLs $ Billions Inactive 5,300 Under $1 Million 11,300 2 $1 - $10 Million 2,100 6 $10 - $100 Million 500 22 Over $100 Million 300 145 All 3 PLs 19,500 175 ~$170 Billion triumph’s transportation finance opportunity PAGE ~$60 Billion
Loan portfolio PAGE
DEPOSIT MIX AND GROWTH PAGE *Deposits totaling $601.2 million and $73.5 million were assumed in the First Bancorp of Durango, Inc. and Southern Colorado Corp. acquisitions, respectively
FINANCIAL HIGHLIGHTS PAGE Reconciliations of non-GAAP financial measures can be found at the end of the presentation Includes discount accretion on purchased loans of $1,697 in 4Q17, $1,977 in 1Q18, $3,637 in 2Q18, $1,271 in 3Q18, and $1,411 in 4Q18 (dollars in thousands) Metric adjusted to exclude material gains and expenses related to merger and acquisition-related activities, net of tax where applicable Asset quality ratios exclude loans held for sale Current quarter ratios are preliminary 43465QTD 43373QTD 43281QTD 43190QTD 43100QTD 43465 43373 43281 43190 43100 As of and For the Three Months Ended Key Metrics December 31, September 30, June 30, March 31, December 31, 2018 2018 2018 2018 2017 Performance ratios - annualized ROAA Return on average assets 1.59836644654584% .895888860348001% 1.368913918307048% 1.43488217291413% .786268711225136% ROATCE Return on average tangible common equity (ROATCE) (1) 0.16734623929529779 7.566729599617285% 9.950252430952552% 0.14748163086412747 7.328496087154611% Yield_Loans Yield on loans(2) 8.14% 8.33% 8.9% 7.65% 7.729999999999999% CostOfTotalDeposits Cost of total deposits .909444799833016% .854826457502392% .728648800964141% .676491909921952% .67167243603311% NIM Net interest margin(2) 6.340318149705548% 6.587251816912991% 6.355209121569136% 6.615380371230043% 6.16258340526653% Net_Nonint_Exp_Avg_Assets Net non-interest expense to average assets 3.550214544579229% 4.190323750768411% 3.587460180756773% 3.432773044113241% 3.645047693626371% Net_Nonint_Exp_Avg_Assets_Adj Adjusted net non-interest expense to average assets (1)(3) 3.550214544579229% 3.616676755337314% 3.46654615798428% 3.560131312614495% 3.434563871673167% Efficiency_Unadjusted Efficiency ratio 0.65521880825205669 0.721482498835187 0.6426335152399435 0.65088187279611953 0.66735544056766694 Efficiency Adjusted efficiency ratio (1)(3) 0.65521880825205669 0.63493709562202605 0.62383665258488064 0.66449018609204968 0.63345574992939546 Asset Quality(3) Nonperforming assets to total assets Non-performing assets to total assets .839492440313445% .93030749584206% 1.27793716964838% 1.467837098863146% 1.385725713361377% ALLL to total loans ALLL to total loans .764026598356613% .776050405692479% .76794280676573% .696663343754404% .66698543077269% Net charge-offs to average loans Net charge-offs to average loans 45176188551532438.451761885515324% .124316094470515% 13038804646194944.130388046461949% 46044991812014998.46044991812015% 56550519897419628.565505198974196% Capital(4) Tier 1 capital to average assets Tier 1 capital to average assets 0.110794 0.11748529030204684 0.15002799999999999 0.11227588755937876 0.117979 Tier 1 capital to risk-weighted assets Tier 1 capital to risk-weighted assets 0.11529200000000001 0.11160782043180321 0.14676400000000001 0.11535735876901632 0.11149199999999999 Common equity tier 1 capital to risk-weighted assets Common equity tier 1 capital to risk-weighted assets 0.105813 9.963598284830128% 0.133244 0.10049263549053036 9.7041% Total capital to risk-weighted assets Total capital to risk-weighted assets 0.13397700000000001 0.13048520111929465 0.16733500000000001 0.13662722385560225 0.13211899999999999 Per Share Amounts Common Book Value per share, basic Book value per share $23.621812441780939 $23.09693951782895 $22.755096533481389 $18.885720879181353 $18.349289063706372 Tangible common book value per common share Tangible book value per share (1) $16.222260677353741 $15.416442086364484 $18.2701997701135 $15.816120581282371 $15.286026662808258 EPS_Basic Basic earnings per common share $0.6781817843664586 $0.34282489208822919 $0.47778654941594234 $0.5731969840679455 $0.29495941598035236 EPS_Diluted Diluted earnings per common share $0.67030412762111169 $0.33970561035251029 $0.47064017295355659 $0.55972335628645931 $0.29303085682044722 DilutedEPS_Adj Adjusted diluted earnings per common share(1)(3) $0.67 $0.51 $0.5 $0.52 $0.34355943362214086
NON-GAAP FINANCIAL RECONCILIATION PAGE Triumph uses certain non-GAAP financial measures to provide meaningful supplemental information regarding our operational performance and to enhance investors' overall understanding of such financial performance. 43465QTD 42916QTD 42825QTD 42460QTD 42185QTD 43465YTD 43100YTD Period end date 43465 43373 43281 43190 43100 43465 43100 Quarter 4 Days in Year 365 365 365 365 365 365 365 Days in Quarter 92 92 91 90 92 365 365 As of and for the Three Months Ended As of and for the Years Ended (Dollars in thousands, December 31, September 30, June 30, March 31, December 31, December 31, December 31, except per share amounts) 2018 2018 2018 2018 2017 2018 2017 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 $51,130 $35,446 Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Manual Adj Incremental bonus related to transaction 0 0 0 0 0 0 4,814 Transaction related costs 0 5,871 1,094 0 1,688 6,965 2,013 Tax effect of adjustments 0 -1,392 -,257 248.36490000000001 -,601 -1,401 5,153 Adjusted net income available to common stockholders $18,085 $13,454 $13,029 $11,055.3649 $7,198 $55,623 $26,566 Manual Adj Dilutive effect of convertible preferred stock 0 195 193 190 194 578 774 Adjusted net income available to common stockholders - diluted $18,085 $13,649 $13,222 $11,245.3649 $7,392 $56,201 $27,340 Diluted_Shrs Weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 25,480,513 20,000,288 Manual Adj Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 25,480,513 20,000,288 YTD YTD Adjusted diluted earnings per common share $0.67 $0.51 $0.5 $0.52 $0.34 $2.21 $1.37 $0 $0 $2.9895522904492822E-3 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 $51,130 $35,446 AvgTangEq Average tangible common equity ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 ,330,819.26071665203 ,429,744.59731205588 ,283,560.764185048 Return on average tangible common equity 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 7.3286930780113405E-2 0.11897764467501223 0.12500318971093055 Adjusted efficiency ratio: Net interest income $64,881 $61,782 $53,257 $47,130 $45,796 $,227,050 $,155,684 Non-interest income 6,794 6,059 4,945 5,172 3,998 22,970 40,656 Operating revenue 71,675 67,841 58,202 52,302 49,794 ,250,020 ,196,340 Manual Adj Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Adjusted operating revenue $71,675 $67,841 $58,202 $51,231 $49,794 $,248,949 $,175,480 Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 $,167,353 $,123,614 Incremental bonus related to transaction 0 0 0 0 0 0 -4,814 Manual Adj Transaction related costs 0 -5,871 -1,094 0 -1,688 -6,965 -2,013 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 $,160,388 $,116,787 Adjusted efficiency ratio 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 0.63346989597140213 0.64426047102016881 0.66552883519489403 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 $,167,353 $,123,614 Incremental bonus related to transaction 0 0 0 0 0 0 -4,814 Manual Adj Transaction related costs 0 -5,871 -1,094 0 -1,688 -6,965 -2,013 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 $,160,388 $,116,787 Total non-interest income $6,794 $6,059 $4,945 $5,172 $3,998 $22,970 $40,656 Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Adjusted non-interest income $6,794 $6,059 $4,945 $4,101 $3,998 $21,899 $19,796 Adjusted net non-interest expenses $40,168 $37,016 $31,364 $29,941 $27,545 $,138,489 $96,991 AvgAssets Average total assets $4,488,918 $4,060,560 $3,628,960 $3,410,883 $3,181,697 $3,900,728 $2,844,916 CHECK ROUNDING $4,488,918 $4,488,918 Adjusted net non-interest expense to average assets ratio 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 3.4347014652325744E-2 3.5503372703761964E-2 3.40927464993694E-2 Total stockholders' equity $,636,607 $,616,641 $,607,225 $,402,944 $,391,698 $,636,607 $,391,698 Preferred_Stock_A Preferred_Stock_B Preferred stock liquidation preference 0 -9,658 -9,658 -9,658 -9,658 0 -9,658 Total common stockholders' equity ,636,607 ,606,983 ,597,567 ,393,286 ,382,040 ,636,607 ,382,040 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 -,199,417 ,-63,778 Tangible common stockholders' equity $,437,190 $,405,141 $,479,790 $,329,363 $,318,262 $,437,190 $,318,262 Common shares outstanding, end of period Common shares outstanding 26,949,936 26,279,761 26,260,785 20,824,509 20,820,445 26,949,936 20,820,445 Tangible book value per share $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 $15.28603255117746 $16.22230197503994 $15.28603255117746 Total assets at end of period $4,559,779 $4,537,102 $3,794,631 $3,405,010 $3,499,033 $4,559,779 $3,499,033 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 -,199,417 ,-63,778 Adjusted total assets at period end $4,360,362 $4,335,260 $3,676,854 $3,341,087 $3,435,255 $4,360,362 $3,435,255 Tangible common stockholders' equity ratio 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 9.2645815230601516E-2 0.10026461105752228 9.2645815230601516E-2 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0 0 0 Slide Deck Presentation: Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 Gain on sale of subsidiary 0 0 0 -1,071 0 Transaction related costs 0 5,871 1,094 0 1,688 Tax effect of adjustments 0 -1,392 -,257 248.36490000000001 -,601 Adjusted net income available to common stockholders $18,085 $13,454 $13,029 $11,055.3649 $7,198 Dilutive effect of convertible preferred stock 0 195 193 190 194 Adjusted net income available to common stockholders - diluted $18,085 $13,649 $13,222 $11,245.3649 $7,392 Weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 Adjusted diluted earnings per common share $0.67 $0.51 $0.5 $0.52 $0.34 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 Average tangible common equity ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 ,330,819.26071665203 Return on average tangible common equity 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 7.3286930780113405E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Adjusted efficiency ratio: Net interest income $64,881 $61,782 $53,257 $47,130 $45,796 Non-interest income 6,794 6,059 4,945 5,172 3,998 Operating revenue 71,675 67,841 58,202 52,302 49,794 Gain on sale of subsidiary 0 0 0 -1,071 0 Adjusted operating revenue $71,675 $67,841 $58,202 $51,231 $49,794 Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 Transaction related costs 0 -5,871 -1,094 0 -1,688 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 Adjusted efficiency ratio 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 0.63346989597140213 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 Transaction related costs 0 -5,871 -1,094 0 -1,688 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 Total non-interest income $6,794 $6,059 $4,945 $5,172 $3,998 Gain on sale of subsidiary 0 0 0 -1,071 0 Adjusted non-interest income $6,794 $6,059 $4,945 $4,101 $3,998 Adjusted net non-interest expenses $40,168 $37,016 $31,364 $29,941 $27,545 Average total assets 4,488,918 4,060,560 3,628,960 3,410,883 3,181,697 Adjusted net non-interest expense to average assets ratio 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 3.4347014652325744E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Total stockholders' equity $,636,607 $,616,641 $,607,225 $,402,944 $,391,698 Preferred stock liquidation preference 0 -9,658 -9,658 -9,658 -9,658 Total common stockholders' equity ,636,607 ,606,983 ,597,567 ,393,286 ,382,040 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 Tangible common stockholders' equity $,437,190 $,405,141 $,479,790 $,329,363 $,318,262 Common shares outstanding at end of period 26,949,936 26,279,761 26,260,785 20,824,509 20,820,445 Tangible book value per share $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 $15.28603255117746 Total assets at end of period $4,559,779 $4,537,102 $3,794,631 $3,405,010 $3,499,033 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 Adjusted total assets at period end $4,360,362 $4,335,260 $3,676,854 $3,341,087 $3,435,255 Tangible common stockholders' equity ratio 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 9.2645815230601516E-2 92 365 Metrics and non-GAAP financial reconciliation (cont'd) For the Three Months Ended For the Three Months Ended December 31, 2018 December 31, 2018 (Dollars in thousands, except per share amounts) GAAP (Dollars in thousands, except per share amounts) GAAP Net interest income to average total assets: Credit costs to average total assets: Loan Discount Accretion Net interest income $64,881 Provision for loan losses $1,910 Int_Inc_Discount_Loans $1,411 Average total assets 4,488,918 Average total assets 4,488,918 Int_Inc_Discount_Factored_Rec $0 Net interest income to average assets 5.7299999999999997E-2 Credit costs to average assets 1.6999999999999999E-3 Net noninterest expense to average total assets: Taxes to average total assets: Total noninterest expense $46,962 Income tax expense $4,718 Total noninterest income 6,794 Average total assets 4,488,918 Net noninterest expense $40,168 Taxes to average assets 4.0999999999999995E-3 MANUAL ADJ FOR ROUNDING Average total assets 4,488,918 Net noninterest expense to average assets ratio 3.5499999999999997E-2 Return on average total assets: Net interest income to average assets 5.73% Pre-provision net revenue to average total assets: Net noninterest expense to average assets ratio -3.55% Net interest income $64,881 Pre-provision net revenue to average assets 2.18% CHANGE LABEL TO ADJUSTED WHEN THERE IS A CORE RATIO Adjusted net noninterest expense Adjusted net noninterest expense ,-40,168 Credit costs to average assets -0.17% Pre-provision net revenue $24,713 Taxes to average assets -0.41% Average total assets 4,488,918 Return on average assets 1.6E-2 Pre-provision net revenue to average assets 2.18E-2 MANUAL ADJ FOR ROUNDING 0 0 $ Amount 1.6335534541597752E-5 Discount Accretion #REF!
NON-GAAP FINANCIAL RECONCILIATION PAGE 43465QTD 42916QTD 42825QTD 42460QTD 42185QTD 43465YTD 43100YTD Period end date 43465 43373 43281 43190 43100 43465 43100 Quarter 4 Days in Year 365 365 365 365 365 365 365 Days in Quarter 92 92 91 90 92 365 365 As of and for the Three Months Ended As of and for the Years Ended (Dollars in thousands, December 31, September 30, June 30, March 31, December 31, December 31, December 31, except per share amounts) 2018 2018 2018 2018 2017 2018 2017 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 $51,130 $35,446 Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Manual Adj Incremental bonus related to transaction 0 0 0 0 0 0 4,814 Transaction related costs 0 5,871 1,094 0 1,688 6,965 2,013 Tax effect of adjustments 0 -1,392 -,257 248.36490000000001 -,601 -1,401 5,153 Adjusted net income available to common stockholders $18,085 $13,454 $13,029 $11,055.3649 $7,198 $55,623 $26,566 Manual Adj Dilutive effect of convertible preferred stock 0 195 193 190 194 578 774 Adjusted net income available to common stockholders - diluted $18,085 $13,649 $13,222 $11,245.3649 $7,392 $56,201 $27,340 Diluted_Shrs Weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 25,480,513 20,000,288 Manual Adj Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 25,480,513 20,000,288 YTD YTD Adjusted diluted earnings per common share $0.67 $0.51 $0.5 $0.52 $0.34 $2.21 $1.37 $0 $0 $2.9895522904492822E-3 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 $51,130 $35,446 AvgTangEq Average tangible common equity ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 ,330,819.26071665203 ,429,744.59731205588 ,283,560.764185048 Return on average tangible common equity 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 7.3286930780113405E-2 0.11897764467501223 0.12500318971093055 Adjusted efficiency ratio: Net interest income $64,881 $61,782 $53,257 $47,130 $45,796 $,227,050 $,155,684 Non-interest income 6,794 6,059 4,945 5,172 3,998 22,970 40,656 Operating revenue 71,675 67,841 58,202 52,302 49,794 ,250,020 ,196,340 Manual Adj Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Adjusted operating revenue $71,675 $67,841 $58,202 $51,231 $49,794 $,248,949 $,175,480 Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 $,167,353 $,123,614 Incremental bonus related to transaction 0 0 0 0 0 0 -4,814 Manual Adj Transaction related costs 0 -5,871 -1,094 0 -1,688 -6,965 -2,013 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 $,160,388 $,116,787 Adjusted efficiency ratio 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 0.63346989597140213 0.64426047102016881 0.66552883519489403 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 $,167,353 $,123,614 Incremental bonus related to transaction 0 0 0 0 0 0 -4,814 Manual Adj Transaction related costs 0 -5,871 -1,094 0 -1,688 -6,965 -2,013 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 $,160,388 $,116,787 Total non-interest income $6,794 $6,059 $4,945 $5,172 $3,998 $22,970 $40,656 Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Adjusted non-interest income $6,794 $6,059 $4,945 $4,101 $3,998 $21,899 $19,796 Adjusted net non-interest expenses $40,168 $37,016 $31,364 $29,941 $27,545 $,138,489 $96,991 AvgAssets Average total assets $4,488,918 $4,060,560 $3,628,960 $3,410,883 $3,181,697 $3,900,728 $2,844,916 CHECK ROUNDING $4,488,918 $4,488,918 Adjusted net non-interest expense to average assets ratio 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 3.4347014652325744E-2 3.5503372703761964E-2 3.40927464993694E-2 Total stockholders' equity $,636,607 $,616,641 $,607,225 $,402,944 $,391,698 $,636,607 $,391,698 Preferred_Stock_A Preferred_Stock_B Preferred stock liquidation preference 0 -9,658 -9,658 -9,658 -9,658 0 -9,658 Total common stockholders' equity ,636,607 ,606,983 ,597,567 ,393,286 ,382,040 ,636,607 ,382,040 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 -,199,417 ,-63,778 Tangible common stockholders' equity $,437,190 $,405,141 $,479,790 $,329,363 $,318,262 $,437,190 $,318,262 Common shares outstanding, end of period Common shares outstanding 26,949,936 26,279,761 26,260,785 20,824,509 20,820,445 26,949,936 20,820,445 Tangible book value per share $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 $15.28603255117746 $16.22230197503994 $15.28603255117746 Total assets at end of period $4,559,779 $4,537,102 $3,794,631 $3,405,010 $3,499,033 $4,559,779 $3,499,033 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 -,199,417 ,-63,778 Adjusted total assets at period end $4,360,362 $4,335,260 $3,676,854 $3,341,087 $3,435,255 $4,360,362 $3,435,255 Tangible common stockholders' equity ratio 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 9.2645815230601516E-2 0.10026461105752228 9.2645815230601516E-2 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0 0 0 Slide Deck Presentation: Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 Gain on sale of subsidiary 0 0 0 -1,071 0 Incremental bonus related to transaction 0 0 0 0 0 Transaction related costs 0 5,871 1,094 0 1,688 Tax effect of adjustments 0 -1,392 -,257 248.36490000000001 -,601 Adjusted net income available to common stockholders $18,085 $13,454 $13,029 $11,055.3649 $7,198 Dilutive effect of convertible preferred stock 0 195 193 190 194 Adjusted net income available to common stockholders - diluted $18,085 $13,649 $13,222 $11,245.3649 $7,392 Weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 Adjusted diluted earnings per common share $0.67 $0.51 $0.5 $0.52 $0.34 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 Average tangible common equity ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 ,330,819.26071665203 Return on average tangible common equity 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 7.3286930780113405E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Adjusted efficiency ratio: Net interest income $64,881 $61,782 $53,257 $47,130 $45,796 Non-interest income 6,794 6,059 4,945 5,172 3,998 Operating revenue 71,675 67,841 58,202 52,302 49,794 Gain on sale of subsidiary 0 0 0 -1,071 0 Adjusted operating revenue $71,675 $67,841 $58,202 $51,231 $49,794 Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 Transaction related costs 0 -5,871 -1,094 0 -1,688 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 Adjusted efficiency ratio 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 0.63346989597140213 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 Transaction related costs 0 -5,871 -1,094 0 -1,688 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 Total non-interest income $6,794 $6,059 $4,945 $5,172 $3,998 Gain on sale of subsidiary 0 0 0 -1,071 0 Adjusted non-interest income $6,794 $6,059 $4,945 $4,101 $3,998 Adjusted net non-interest expenses $40,168 $37,016 $31,364 $29,941 $27,545 Average total assets 4,488,918 4,060,560 3,628,960 3,410,883 3,181,697 Adjusted net non-interest expense to average assets ratio 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 3.4347014652325744E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Total stockholders' equity $,636,607 $,616,641 $,607,225 $,402,944 $,391,698 Preferred stock liquidation preference 0 -9,658 -9,658 -9,658 -9,658 Total common stockholders' equity ,636,607 ,606,983 ,597,567 ,393,286 ,382,040 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 Tangible common stockholders' equity $,437,190 $,405,141 $,479,790 $,329,363 $,318,262 Common shares outstanding at end of period 26,949,936 26,279,761 26,260,785 20,824,509 20,820,445 Tangible book value per share $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 $15.28603255117746 Total assets at end of period $4,559,779 $4,537,102 $3,794,631 $3,405,010 $3,499,033 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 Adjusted total assets at period end $4,360,362 $4,335,260 $3,676,854 $3,341,087 $3,435,255 Tangible common stockholders' equity ratio 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 9.2645815230601516E-2 92 365 Metrics and non-GAAP financial reconciliation (cont'd) For the Three Months Ended For the Three Months Ended December 31, 2018 December 31, 2018 (Dollars in thousands, except per share amounts) GAAP (Dollars in thousands, except per share amounts) GAAP Net interest income to average total assets: Credit costs to average total assets: Loan Discount Accretion Net interest income $64,881 Provision for loan losses $1,910 Int_Inc_Discount_Loans $1,411 Average total assets 4,488,918 Average total assets 4,488,918 Int_Inc_Discount_Factored_Rec $0 Net interest income to average assets 5.7299999999999997E-2 Credit costs to average assets 1.6999999999999999E-3 Net noninterest expense to average total assets: Taxes to average total assets: Total noninterest expense $46,962 Income tax expense $4,718 Transaction related costs 0 Tax effect of adjustments 0 Adjusted noninterest expense 46,962 Adjusted tax expense 4,718 Total noninterest income 6,794 Average total assets 4,488,918 Net noninterest expense $40,168 Taxes to average assets 4.0999999999999995E-3 Average total assets 4,488,918 Net noninterest expense to average assets ratio 3.5499999999999997E-2 Return on average total assets: Net interest income to average assets 5.73% Pre-provision net revenue to average total assets: Net noninterest expense to average assets ratio -3.55% Net interest income $64,881 Pre-provision net revenue to average assets 2.18% Adjusted net noninterest expense ,-40,168 Credit costs to average assets -0.17% Pre-provision net revenue $24,713 Taxes to average assets -0.41% Average total assets 4,488,918 Return on average assets 1.6E-2 Pre-provision net revenue to average assets 2.18E-2 MANUAL ADJ FOR ROUNDING 0 0 $ Amount 1.6335534541597752E-5 Discount Accretion #REF!
NON-GAAP FINANCIAL RECONCILIATION PAGE 43465QTD 42916QTD 42825QTD 42460QTD 42185QTD 43465YTD 43100YTD Period end date 43465 43373 43281 43190 43100 43465 43100 Quarter 4 Days in Year 365 365 365 365 365 365 365 Days in Quarter 92 92 91 90 92 365 365 As of and for the Three Months Ended As of and for the Years Ended (Dollars in thousands, December 31, September 30, June 30, March 31, December 31, December 31, December 31, except per share amounts) 2018 2018 2018 2018 2017 2018 2017 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 $51,130 $35,446 Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Manual Adj Incremental bonus related to transaction 0 0 0 0 0 0 4,814 Transaction related costs 0 5,871 1,094 0 1,688 6,965 2,013 Tax effect of adjustments 0 -1,392 -,257 248.36490000000001 -,601 -1,401 5,153 Adjusted net income available to common stockholders $18,085 $13,454 $13,029 $11,055.3649 $7,198 $55,623 $26,566 Manual Adj Dilutive effect of convertible preferred stock 0 195 193 190 194 578 774 Adjusted net income available to common stockholders - diluted $18,085 $13,649 $13,222 $11,245.3649 $7,392 $56,201 $27,340 Diluted_Shrs Weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 25,480,513 20,000,288 Manual Adj Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 25,480,513 20,000,288 YTD YTD Adjusted diluted earnings per common share $0.67 $0.51 $0.5 $0.52 $0.34 $2.21 $1.37 $0 $0 $2.9895522904492822E-3 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 $51,130 $35,446 AvgTangEq Average tangible common equity ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 ,330,819.26071665203 ,429,744.59731205588 ,283,560.764185048 Return on average tangible common equity 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 7.3286930780113405E-2 0.11897764467501223 0.12500318971093055 Adjusted efficiency ratio: Net interest income $64,881 $61,782 $53,257 $47,130 $45,796 $,227,050 $,155,684 Non-interest income 6,794 6,059 4,945 5,172 3,998 22,970 40,656 Operating revenue 71,675 67,841 58,202 52,302 49,794 ,250,020 ,196,340 Manual Adj Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Adjusted operating revenue $71,675 $67,841 $58,202 $51,231 $49,794 $,248,949 $,175,480 Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 $,167,353 $,123,614 Incremental bonus related to transaction 0 0 0 0 0 0 -4,814 Manual Adj Transaction related costs 0 -5,871 -1,094 0 -1,688 -6,965 -2,013 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 $,160,388 $,116,787 Adjusted efficiency ratio 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 0.63346989597140213 0.64426047102016881 0.66552883519489403 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 $,167,353 $,123,614 Incremental bonus related to transaction 0 0 0 0 0 0 -4,814 Manual Adj Transaction related costs 0 -5,871 -1,094 0 -1,688 -6,965 -2,013 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 $,160,388 $,116,787 Total non-interest income $6,794 $6,059 $4,945 $5,172 $3,998 $22,970 $40,656 Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Adjusted non-interest income $6,794 $6,059 $4,945 $4,101 $3,998 $21,899 $19,796 Adjusted net non-interest expenses $40,168 $37,016 $31,364 $29,941 $27,545 $,138,489 $96,991 AvgAssets Average total assets $4,488,918 $4,060,560 $3,628,960 $3,410,883 $3,181,697 $3,900,728 $2,844,916 CHECK ROUNDING $4,488,918 $4,488,918 Adjusted net non-interest expense to average assets ratio 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 3.4347014652325744E-2 3.5503372703761964E-2 3.40927464993694E-2 Total stockholders' equity $,636,607 $,616,641 $,607,225 $,402,944 $,391,698 $,636,607 $,391,698 Preferred_Stock_A Preferred_Stock_B Preferred stock liquidation preference 0 -9,658 -9,658 -9,658 -9,658 0 -9,658 Total common stockholders' equity ,636,607 ,606,983 ,597,567 ,393,286 ,382,040 ,636,607 ,382,040 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 -,199,417 ,-63,778 Tangible common stockholders' equity $,437,190 $,405,141 $,479,790 $,329,363 $,318,262 $,437,190 $,318,262 Common shares outstanding, end of period Common shares outstanding 26,949,936 26,279,761 26,260,785 20,824,509 20,820,445 26,949,936 20,820,445 Tangible book value per share $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 $15.28603255117746 $16.22230197503994 $15.28603255117746 Total assets at end of period $4,559,779 $4,537,102 $3,794,631 $3,405,010 $3,499,033 $4,559,779 $3,499,033 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 -,199,417 ,-63,778 Adjusted total assets at period end $4,360,362 $4,335,260 $3,676,854 $3,341,087 $3,435,255 $4,360,362 $3,435,255 Tangible common stockholders' equity ratio 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 9.2645815230601516E-2 0.10026461105752228 9.2645815230601516E-2 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0 0 0 Slide Deck Presentation: Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 Gain on sale of subsidiary 0 0 0 -1,071 0 Incremental bonus related to transaction 0 0 0 0 0 Transaction related costs 0 5,871 1,094 0 1,688 Tax effect of adjustments 0 -1,392 -,257 248.36490000000001 -,601 Adjusted net income available to common stockholders $18,085 $13,454 $13,029 $11,055.3649 $7,198 Dilutive effect of convertible preferred stock 0 195 193 190 194 Adjusted net income available to common stockholders - diluted $18,085 $13,649 $13,222 $11,245.3649 $7,392 Weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 Adjusted diluted earnings per common share $0.67 $0.51 $0.5 $0.52 $0.34 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 Average tangible common equity ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 ,330,819.26071665203 Return on average tangible common equity 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 7.3286930780113405E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Adjusted efficiency ratio: Net interest income $64,881 $61,782 $53,257 $47,130 $45,796 Non-interest income 6,794 6,059 4,945 5,172 3,998 Operating revenue 71,675 67,841 58,202 52,302 49,794 Gain on sale of subsidiary 0 0 0 -1,071 0 Adjusted operating revenue $71,675 $67,841 $58,202 $51,231 $49,794 Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 Transaction related costs 0 -5,871 -1,094 0 -1,688 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 Adjusted efficiency ratio 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 0.63346989597140213 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 Transaction related costs 0 -5,871 -1,094 0 -1,688 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 Total non-interest income $6,794 $6,059 $4,945 $5,172 $3,998 Gain on sale of subsidiary 0 0 0 -1,071 0 Adjusted non-interest income $6,794 $6,059 $4,945 $4,101 $3,998 Adjusted net non-interest expenses $40,168 $37,016 $31,364 $29,941 $27,545 Average total assets 4,488,918 4,060,560 3,628,960 3,410,883 3,181,697 Adjusted net non-interest expense to average assets ratio 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 3.4347014652325744E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Total stockholders' equity $,636,607 $,616,641 $,607,225 $,402,944 $,391,698 Preferred stock liquidation preference 0 -9,658 -9,658 -9,658 -9,658 Total common stockholders' equity ,636,607 ,606,983 ,597,567 ,393,286 ,382,040 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 Tangible common stockholders' equity $,437,190 $,405,141 $,479,790 $,329,363 $,318,262 Common shares outstanding at end of period 26,949,936 26,279,761 26,260,785 20,824,509 20,820,445 Tangible book value per share $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 $15.28603255117746 Total assets at end of period $4,559,779 $4,537,102 $3,794,631 $3,405,010 $3,499,033 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 Adjusted total assets at period end $4,360,362 $4,335,260 $3,676,854 $3,341,087 $3,435,255 Tangible common stockholders' equity ratio 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 9.2645815230601516E-2 92 365 Metrics and non-GAAP financial reconciliation (cont'd) For the Three Months Ended For the Three Months Ended December 31, 2018 December 31, 2018 (Dollars in thousands, except per share amounts) GAAP (Dollars in thousands, except per share amounts) GAAP Net interest income to average total assets: Credit costs to average total assets: Loan Discount Accretion Net interest income $64,881 Provision for loan losses $1,910 Int_Inc_Discount_Loans $1,411 Average total assets 4,488,918 Average total assets 4,488,918 Int_Inc_Discount_Factored_Rec $0 Net interest income to average assets 5.7299999999999997E-2 Credit costs to average assets 1.6999999999999999E-3 Net noninterest expense to average total assets: Taxes to average total assets: Total noninterest expense $46,962 Income tax expense $4,718 Transaction related costs 0 Tax effect of adjustments 0 Adjusted noninterest expense 46,962 Adjusted tax expense 4,718 Total noninterest income 6,794 Average total assets 4,488,918 Net noninterest expense $40,168 Taxes to average assets 4.0999999999999995E-3 Average total assets 4,488,918 Net noninterest expense to average assets ratio 3.5499999999999997E-2 Return on average total assets: Net interest income to average assets 5.73% Pre-provision net revenue to average total assets: Net noninterest expense to average assets ratio -3.55% Net interest income $64,881 Pre-provision net revenue to average assets 2.18% Adjusted net noninterest expense ,-40,168 Credit costs to average assets -0.17% Pre-provision net revenue $24,713 Taxes to average assets -0.41% Average total assets 4,488,918 Return on average assets 1.6E-2 Pre-provision net revenue to average assets 2.18E-2 MANUAL ADJ FOR ROUNDING 0 0 $ Amount 1.6335534541597752E-5 Discount Accretion #REF!
NON-GAAP FINANCIAL RECONCILIATION PAGE 43465QTD 42916QTD 42825QTD 42460QTD 42185QTD 43465YTD 43100YTD Period end date 43465 43373 43281 43190 43100 43465 43100 Quarter 4 Days in Year 365 365 365 365 365 365 365 Days in Quarter 92 92 91 90 92 365 365 As of and for the Three Months Ended As of and for the Years Ended (Dollars in thousands, December 31, September 30, June 30, March 31, December 31, December 31, December 31, except per share amounts) 2018 2018 2018 2018 2017 2018 2017 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 $51,130 $35,446 Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Manual Adj Incremental bonus related to transaction 0 0 0 0 0 0 4,814 Transaction related costs 0 5,871 1,094 0 1,688 6,965 2,013 Tax effect of adjustments 0 -1,392 -,257 248.36490000000001 -,601 -1,401 5,153 Adjusted net income available to common stockholders $18,085 $13,454 $13,029 $11,055.3649 $7,198 $55,623 $26,566 Manual Adj Dilutive effect of convertible preferred stock 0 195 193 190 194 578 774 Adjusted net income available to common stockholders - diluted $18,085 $13,649 $13,222 $11,245.3649 $7,392 $56,201 $27,340 Diluted_Shrs Weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 25,480,513 20,000,288 Manual Adj Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 25,480,513 20,000,288 YTD YTD Adjusted diluted earnings per common share $0.67 $0.51 $0.5 $0.52 $0.34 $2.21 $1.37 $0 $0 $2.9895522904492822E-3 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 $51,130 $35,446 AvgTangEq Average tangible common equity ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 ,330,819.26071665203 ,429,744.59731205588 ,283,560.764185048 Return on average tangible common equity 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 7.3286930780113405E-2 0.11897764467501223 0.12500318971093055 Adjusted efficiency ratio: Net interest income $64,881 $61,782 $53,257 $47,130 $45,796 $,227,050 $,155,684 Non-interest income 6,794 6,059 4,945 5,172 3,998 22,970 40,656 Operating revenue 71,675 67,841 58,202 52,302 49,794 ,250,020 ,196,340 Manual Adj Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Adjusted operating revenue $71,675 $67,841 $58,202 $51,231 $49,794 $,248,949 $,175,480 Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 $,167,353 $,123,614 Incremental bonus related to transaction 0 0 0 0 0 0 -4,814 Manual Adj Transaction related costs 0 -5,871 -1,094 0 -1,688 -6,965 -2,013 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 $,160,388 $,116,787 Adjusted efficiency ratio 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 0.63346989597140213 0.64426047102016881 0.66552883519489403 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 $,167,353 $,123,614 Incremental bonus related to transaction 0 0 0 0 0 0 -4,814 Manual Adj Transaction related costs 0 -5,871 -1,094 0 -1,688 -6,965 -2,013 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 $,160,388 $,116,787 Total non-interest income $6,794 $6,059 $4,945 $5,172 $3,998 $22,970 $40,656 Gain on sale of subsidiary 0 0 0 -1,071 0 -1,071 ,-20,860 Adjusted non-interest income $6,794 $6,059 $4,945 $4,101 $3,998 $21,899 $19,796 Adjusted net non-interest expenses $40,168 $37,016 $31,364 $29,941 $27,545 $,138,489 $96,991 AvgAssets Average total assets $4,488,918 $4,060,560 $3,628,960 $3,410,883 $3,181,697 $3,900,728 $2,844,916 CHECK ROUNDING $4,488,918 $4,488,918 Adjusted net non-interest expense to average assets ratio 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 3.4347014652325744E-2 3.5503372703761964E-2 3.40927464993694E-2 Total stockholders' equity $,636,607 $,616,641 $,607,225 $,402,944 $,391,698 $,636,607 $,391,698 Preferred_Stock_A Preferred_Stock_B Preferred stock liquidation preference 0 -9,658 -9,658 -9,658 -9,658 0 -9,658 Total common stockholders' equity ,636,607 ,606,983 ,597,567 ,393,286 ,382,040 ,636,607 ,382,040 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 -,199,417 ,-63,778 Tangible common stockholders' equity $,437,190 $,405,141 $,479,790 $,329,363 $,318,262 $,437,190 $,318,262 Common shares outstanding, end of period Common shares outstanding 26,949,936 26,279,761 26,260,785 20,824,509 20,820,445 26,949,936 20,820,445 Tangible book value per share $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 $15.28603255117746 $16.22230197503994 $15.28603255117746 Total assets at end of period $4,559,779 $4,537,102 $3,794,631 $3,405,010 $3,499,033 $4,559,779 $3,499,033 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 -,199,417 ,-63,778 Adjusted total assets at period end $4,360,362 $4,335,260 $3,676,854 $3,341,087 $3,435,255 $4,360,362 $3,435,255 Tangible common stockholders' equity ratio 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 9.2645815230601516E-2 0.10026461105752228 9.2645815230601516E-2 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 0 0 0 Slide Deck Presentation: Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 Gain on sale of subsidiary 0 0 0 -1,071 0 Incremental bonus related to transaction 0 0 0 0 0 Transaction related costs 0 5,871 1,094 0 1,688 Tax effect of adjustments 0 -1,392 -,257 248.36490000000001 -,601 Adjusted net income available to common stockholders $18,085 $13,454 $13,029 $11,055.3649 $7,198 Dilutive effect of convertible preferred stock 0 195 193 190 194 Adjusted net income available to common stockholders - diluted $18,085 $13,649 $13,222 $11,245.3649 $7,392 Weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 21,518,468.597826086 Adjusted diluted earnings per common share $0.67 $0.51 $0.5 $0.52 $0.34 Net income available to common stockholders $18,085 $8,975 $12,192 $11,878 $6,111 Average tangible common equity ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 ,330,819.26071665203 Return on average tangible common equity 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 7.3286930780113405E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Adjusted efficiency ratio: Net interest income $64,881 $61,782 $53,257 $47,130 $45,796 Non-interest income 6,794 6,059 4,945 5,172 3,998 Operating revenue 71,675 67,841 58,202 52,302 49,794 Gain on sale of subsidiary 0 0 0 -1,071 0 Adjusted operating revenue $71,675 $67,841 $58,202 $51,231 $49,794 Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 Transaction related costs 0 -5,871 -1,094 0 -1,688 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 Adjusted efficiency ratio 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 0.63346989597140213 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $46,962 $48,946 $37,403 $34,042 $33,231 Transaction related costs 0 -5,871 -1,094 0 -1,688 Adjusted non-interest expenses $46,962 $43,075 $36,309 $34,042 $31,543 Total non-interest income $6,794 $6,059 $4,945 $5,172 $3,998 Gain on sale of subsidiary 0 0 0 -1,071 0 Adjusted non-interest income $6,794 $6,059 $4,945 $4,101 $3,998 Adjusted net non-interest expenses $40,168 $37,016 $31,364 $29,941 $27,545 Average total assets 4,488,918 4,060,560 3,628,960 3,410,883 3,181,697 Adjusted net non-interest expense to average assets ratio 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 3.4347014652325744E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Total stockholders' equity $,636,607 $,616,641 $,607,225 $,402,944 $,391,698 Preferred stock liquidation preference 0 -9,658 -9,658 -9,658 -9,658 Total common stockholders' equity ,636,607 ,606,983 ,597,567 ,393,286 ,382,040 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 Tangible common stockholders' equity $,437,190 $,405,141 $,479,790 $,329,363 $,318,262 Common shares outstanding at end of period 26,949,936 26,279,761 26,260,785 20,824,509 20,820,445 Tangible book value per share $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 $15.28603255117746 Total assets at end of period $4,559,779 $4,537,102 $3,794,631 $3,405,010 $3,499,033 Goodwill and other intangibles -,199,417 -,201,842 -,117,777 ,-63,923 ,-63,778 Adjusted total assets at period end $4,360,362 $4,335,260 $3,676,854 $3,341,087 $3,435,255 Tangible common stockholders' equity ratio 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 9.2645815230601516E-2 92 365 Metrics and non-GAAP financial reconciliation (cont'd) For the Three Months Ended For the Three Months Ended December 31, 2018 December 31, 2018 (Dollars in thousands, except per share amounts) GAAP (Dollars in thousands, except per share amounts) GAAP Net interest income to average total assets: Credit costs to average total assets: Loan Discount Accretion Net interest income $64,881 Provision for loan losses $1,910 Int_Inc_Discount_Loans $1,411 Average total assets 4,488,918 Average total assets 4,488,918 Int_Inc_Discount_Factored_Rec $0 Net interest income to average assets 5.7299999999999997E-2 Credit costs to average assets 1.6999999999999999E-3 Net noninterest expense to average total assets: Taxes to average total assets: Total noninterest expense $46,962 Income tax expense $4,718 Total noninterest income 6,794 Average total assets 4,488,918 Net noninterest expense $40,168 Taxes to average assets 4.0999999999999995E-3 MANUAL ADJ FOR ROUNDING Average total assets 4,488,918 Net noninterest expense to average assets ratio 3.5499999999999997E-2 Return on average total assets: Net interest income to average assets 5.73% Pre-provision net revenue to average total assets: Net noninterest expense to average assets ratio -3.55% Net interest income $64,881 Pre-provision net revenue to average assets 2.18% CHANGE LABEL TO ADJUSTED WHEN THERE IS A CORE RATIO Adjusted net noninterest expense Adjusted net noninterest expense ,-40,168 Credit costs to average assets -0.17% Pre-provision net revenue $24,713 Taxes to average assets -0.41% Average total assets 4,488,918 Return on average assets 1.6E-2 Pre-provision net revenue to average assets 2.18E-2 MANUAL ADJ FOR ROUNDING 0 0 $ Amount 1.6335534541597752E-5 Discount Accretion #REF!
Appendix
Factoring 101 Client Account Debtor What is factoring? Factoring is one of the oldest forms of finance. Factoring is a financial transaction in which a business sells its accounts receivable to a third party (factor) at a discount. A business typically factors its receivable assets to meet its present and immediate cash needs. The transaction is a purchase, not a loan. What is the market? Factoring industry data is limited. Based on IFA* studies and discussions with industry experts, we estimate the market, excluding traditional factoring (textiles, furniture, etc.), at ~$120B in annual purchases. Given these estimates, we assume transportation factoring is 45-50% of that market or approximately $60mm. We represent ~5% of the total market and ~10% of the transportation market. We are among the 3 largest discount transportation factors and in the top 10 overall of discount factors. Who are our clients? Our typical client has limited financial systems. We factor clients with historical losses, little (if any) net worth, early stage (less than 3 years activity) businesses, turnarounds and restructurings. Who is Triumph Business Capital? We are a highly specialized factor in the transportation space factoring 3 groups of clients: Recourse trucking Non-recourse trucking (owner / operators) Freight brokers Other industry verticals Similar collateral and portfolio servicing characteristics (staffing, warehousing, etc.) Triumph Business Capital Economics: Our client performs services for the account debtor. The client generates an invoice for $1,000 payable in 30 days. The client sells the invoice to Triumph (factor), who pays the client $900 ($1,000 less a 10% cash reserve or “holdback”). Triumph employs $900 of funds to acquire the invoice. We charge a 2.5% discount fee ($25), which reflects a ~2.8% yield on the actual funds employed. Assuming a similarly sized invoice, with the client, was collected (“turned”) every 36 days (or ~10 times per year) Triumph’s annualized yield on the $900 of Net Funds Employed is ~28% ($25 fee * 10 purchases annually / $900). When the invoice is collected, the 10% holdback less our fee is paid to the client. *IFA is the International Factoring Association and can be found at http://www.factoring.org (Factor) PAGE
Triumphpay 101 TriumphPay Economics: Client approves invoice for $2,000. Payment terms are 21 days. Carrier opts for QuickPay. Triumph pays the carrier $1,980 same day or next day. The $20 difference represents the QuickPay fee. In this example arrangement, that fee is then split between the broker and Triumph, $10 each. At day 20, Triumph drafts $2,000 from the broker. The $10 fee retained by Triumph equates to an annualized yield of 9.2% ($10 fee / $1,980 advanced x 365 days / 20 days). No QuickPay If the carrier declines to use QuickPay, at day 20 Triumph drafts $2,000 from Broker. Triumph then pays the Carrier on day 21. One day float to Triumph. What is TriumphPay? TriumphPay is a reverse factoring product that connects our proprietary payment processing system with a broker or third party logistics’ (3PL) transportation management and accounting system to facilitate payments to carriers, provide improved liquidity options to clients, and generate enhanced revenue opportunities for both TBK and the client through QuickPay programs. What is the market? Based on our analysis of the third party logistics/broker portion of the for-hire trucking market, we estimate the market to be ~$170 billion. Who is the Customer? Large and mid-sized freight brokers and 3PL firms who are suffering from factor fatigue, desire enhanced liquidity options and expanded revenue opportunities. PAGE