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): April 17, 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 April 17, 2019, Triumph Bancorp, Inc. (the “Company”) issued a press release that announced its 2019 first 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 March 31, 2019, 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., and the operating assets of Interstate Capital Corporation and certain of its affiliates) and any future acquisitions; changes in management personnel; interest rate risk; concentration of our factoring services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets, or deferred tax assets; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally, or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities, and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of the Federal Deposit Insurance Corporation insurance and other coverages; failure to receive regulatory approval for future acquisitions; and increases in our capital requirements.
While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2019.
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: April 17, 2019
Exhibit 99.1
Triumph Bancorp Reports First Quarter Net Income to Common Stockholders of $14.8 Million
DALLAS – April 17, 2019 (GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph”) today announced earnings and operating results for the first quarter of 2019.
As part of how we measure our results, we use certain non-GAAP financial measures to ascertain performance. These non-GAAP financial measures are reconciled in the section labeled “Metrics and non-GAAP financial reconciliation” at the end of this press release.
2019 First Quarter Highlights and Recent Developments
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For the first quarter of 2019, net income available to common stockholders was $14.8 million. Diluted earnings per share were $0.55. |
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Net interest margin (“NIM”) was 6.15% for the quarter ended March 31, 2019. |
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Total loans held for investment increased $4.2 million, or 0.1%, to $3.613 billion at March 31, 2019. Average loans for the quarter increased $2.6 million, or 0.1%, to $3.535 billion. Loan growth was consistent with historical first quarter results, which is primarily driven by seasonality in our transportation factoring business. |
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Triumph Business Capital grew period-end clients to 6,382 clients, which is an increase of 191 clients, or 3.1%. The total dollar value of invoices purchased for the quarter ended March 31, 2019 was $1.325 billion with an average invoice price of $1,678. |
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At March 31, 2019, there were 130 clients utilizing the TriumphPay platform, which is an increase of 17 clients, or 15.0%. For the quarter ended March 31, 2019, TriumphPay processed 114,066 invoices paying 22,932 distinct carriers a total of $141.0 million. |
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During the quarter ended March 31, 2019, the Company repurchased 247,312 shares into treasury stock under its stock repurchase program at an average price of $30.51, for a total of $7.6 million. |
Balance Sheet
Total loans held for investment were $3.613 billion at March 31, 2019. Our commercial finance loans, which comprise 33% of the loan portfolio, were $1.187 billion at March 31, 2019, compared to $1.256 billion at December 31, 2018, a decrease of $69.3 million, or 5.5% in the first quarter of 2019.
Total deposits were $3.314 billion at March 31, 2019, a decrease of $135.9 million or 3.9% in the first quarter of 2019. Non-interest-bearing deposits accounted for 20% of total deposits and non-time deposits accounted for 61% of total deposits at March 31, 2019.
Net Interest Income
We earned net interest income for the quarter ended March 31, 2019 of $61.3 million compared to $64.9 million for the quarter ended December 31, 2018.
Yields on loans for the quarter ended March 31, 2019 were down 15 bps from the prior quarter to 7.99%. The average cost of our total deposits was 0.99% for the quarter ended March 31, 2019 compared to 0.91% for the quarter ended December 31, 2018, on an annualized basis.
Asset Quality
Non-performing assets remained flat at 0.84% of total assets at March 31, 2019 and December 31, 2018. The ratio of past due to total loans decreased to 2.33% at March 31, 2019 from 2.41% at December 31, 2018. We recorded total net charge-offs of $1.0 million, or 0.03% of average loans, for the quarter ended March 31, 2019 compared to net charge-offs of $1.6 million, or 0.05% of average loans, for the quarter ended December 31, 2018.
1
We recorded a provision for loan losses of $1.0 million for the quarter ended March 31, 2019 compared to a provision of $1.9 million for the quarter ended December 31, 2018. From December 31, 2018 to March 31, 2019, our ALLL remained flat at $27.6 million or 0.76% of total loans.
Non-Interest Income and Expense
We earned non-interest income for the quarter ended March 31, 2019 of $7.5 million compared to $6.8 million for the quarter ended December 31, 2018.
For the quarter ended March 31, 2019, non-interest expense totaled $48.6 million, compared to $47.0 million for the quarter ended December 31, 2018.
Conference Call Information
Aaron P. Graft, Vice Chairman and CEO and Bryce Fowler, CFO will review the quarterly results in a conference call for investors and analysts beginning at 7:00 a.m. Central Time on Thursday, April 18, 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/tbk190418.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., and the operating assets of Interstate Capital Corporation and certain of its affiliates) and any future acquisitions; changes in management personnel; interest rate risk; concentration of our factoring services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets, or deferred tax assets; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally, or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities, and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of the Federal Deposit Insurance Corporation insurance and other coverages; failure to receive regulatory approval for future acquisitions; and increases in our capital requirements.
While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2019.
Non-GAAP Financial Measures
This press release includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided at the end of this press release.
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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March 31, |
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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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(Dollars in thousands) |
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2019 |
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2018 |
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2018 |
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2018 |
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2018 |
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Financial Highlights: |
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Total assets |
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$ |
4,529,783 |
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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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Loans held for investment |
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$ |
3,612,869 |
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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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Deposits |
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$ |
3,314,440 |
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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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Net income available to common stockholders |
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$ |
14,788 |
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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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Performance Ratios - Annualized: |
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Return on average assets |
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1.33 |
% |
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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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Return on average total equity |
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9.30 |
% |
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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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Return on average common equity |
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9.30 |
% |
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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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Return on average tangible common equity (1) |
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13.43 |
% |
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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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Yield on loans(2) |
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7.99 |
% |
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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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Cost of interest bearing deposits |
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1.24 |
% |
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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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Cost of total deposits |
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0.99 |
% |
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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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Cost of total funds |
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1.28 |
% |
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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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Net interest margin(2) |
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6.15 |
% |
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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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Net non-interest expense to average assets |
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3.70 |
% |
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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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Adjusted net non-interest expense to average assets (1) |
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3.70 |
% |
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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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Efficiency ratio |
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70.54 |
% |
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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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Adjusted efficiency ratio (1) |
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70.54 |
% |
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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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Asset Quality:(3) |
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Past due to total loans |
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2.33 |
% |
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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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Non-performing loans to total loans |
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0.95 |
% |
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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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Non-performing assets to total assets |
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0.84 |
% |
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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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ALLL to non-performing loans |
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80.70 |
% |
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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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ALLL to total loans |
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0.76 |
% |
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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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Net charge-offs to average loans |
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0.03 |
% |
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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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Capital: |
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Tier 1 capital to average assets(4) |
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11.32 |
% |
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11.08 |
% |
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11.75 |
% |
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15.00 |
% |
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11.23 |
% |
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Tier 1 capital to risk-weighted assets(4) |
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11.76 |
% |
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11.49 |
% |
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11.16 |
% |
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14.68 |
% |
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11.54 |
% |
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Common equity tier 1 capital to risk-weighted assets(4) |
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10.81 |
% |
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10.55 |
% |
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9.96 |
% |
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13.32 |
% |
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10.05 |
% |
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Total capital to risk-weighted assets(4) |
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13.62 |
% |
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13.35 |
% |
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13.05 |
% |
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16.73 |
% |
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13.66 |
% |
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Total equity to total assets |
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14.27 |
% |
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13.96 |
% |
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13.59 |
% |
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16.00 |
% |
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11.83 |
% |
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Tangible common stockholders' equity to tangible assets(1) |
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10.37 |
% |
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10.03 |
% |
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9.35 |
% |
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13.05 |
% |
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9.86 |
% |
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Per Share Amounts: |
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Book value per share |
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$ |
24.19 |
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$ |
23.62 |
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$ |
23.10 |
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$ |
22.76 |
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$ |
18.89 |
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Tangible book value per share (1) |
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$ |
16.82 |
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$ |
16.22 |
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$ |
15.42 |
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$ |
18.27 |
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$ |
15.82 |
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Basic earnings per common share |
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$ |
0.55 |
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$ |
0.68 |
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$ |
0.34 |
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|
$ |
0.48 |
|
|
$ |
0.57 |
|
|
Diluted earnings per common share |
|
$ |
0.55 |
|
|
$ |
0.67 |
|
|
$ |
0.34 |
|
|
$ |
0.47 |
|
|
$ |
0.56 |
|
|
Adjusted diluted earnings per common share(1) |
|
$ |
0.55 |
|
|
$ |
0.67 |
|
|
$ |
0.51 |
|
|
$ |
0.50 |
|
|
$ |
0.52 |
|
|
Shares outstanding end of period |
|
|
26,709,411 |
|
|
|
26,949,936 |
|
|
|
26,279,761 |
|
|
|
26,260,785 |
|
|
|
20,824,509 |
|
4
Unaudited consolidated balance sheet as of:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
|
$ |
171,950 |
|
|
$ |
234,939 |
|
|
$ |
282,409 |
|
|
$ |
133,365 |
|
|
$ |
106,046 |
|
|
Securities - available for sale |
|
|
339,465 |
|
|
|
336,423 |
|
|
|
355,981 |
|
|
|
183,184 |
|
|
|
192,916 |
|
|
Securities - held to maturity |
|
|
8,499 |
|
|
|
8,487 |
|
|
|
8,403 |
|
|
|
8,673 |
|
|
|
8,614 |
|
|
Equity securities |
|
|
5,183 |
|
|
|
5,044 |
|
|
|
4,981 |
|
|
|
5,025 |
|
|
|
4,925 |
|
|
Loans held for sale |
|
|
610 |
|
|
|
2,106 |
|
|
|
683 |
|
|
|
— |
|
|
|
— |
|
|
Loans held for investment |
|
|
3,612,869 |
|
|
|
3,608,644 |
|
|
|
3,512,143 |
|
|
|
3,196,462 |
|
|
|
2,873,985 |
|
|
Allowance for loan and lease losses |
|
|
(27,605 |
) |
|
|
(27,571 |
) |
|
|
(27,256 |
) |
|
|
(24,547 |
) |
|
|
(20,022 |
) |
|
Loans, net |
|
|
3,585,264 |
|
|
|
3,581,073 |
|
|
|
3,484,887 |
|
|
|
3,171,915 |
|
|
|
2,853,963 |
|
|
FHLB stock |
|
|
21,191 |
|
|
|
15,943 |
|
|
|
23,109 |
|
|
|
19,223 |
|
|
|
16,508 |
|
|
Premises and equipment, net |
|
|
84,931 |
|
|
|
83,392 |
|
|
|
82,935 |
|
|
|
68,313 |
|
|
|
62,826 |
|
|
Other real estate owned ("OREO"), net |
|
|
3,073 |
|
|
|
2,060 |
|
|
|
2,442 |
|
|
|
2,528 |
|
|
|
9,186 |
|
|
Goodwill and intangible assets, net |
|
|
197,015 |
|
|
|
199,417 |
|
|
|
201,842 |
|
|
|
117,777 |
|
|
|
63,923 |
|
|
Bank-owned life insurance |
|
|
40,667 |
|
|
|
40,509 |
|
|
|
40,339 |
|
|
|
40,168 |
|
|
|
44,534 |
|
|
Deferred tax asset, net |
|
|
7,608 |
|
|
|
8,438 |
|
|
|
8,137 |
|
|
|
8,810 |
|
|
|
8,849 |
|
|
Other assets |
|
|
64,327 |
|
|
|
41,948 |
|
|
|
40,954 |
|
|
|
35,650 |
|
|
|
32,720 |
|
|
Total assets |
|
$ |
4,529,783 |
|
|
$ |
4,559,779 |
|
|
$ |
4,537,102 |
|
|
$ |
3,794,631 |
|
|
$ |
3,405,010 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
$ |
667,597 |
|
|
$ |
724,527 |
|
|
$ |
697,903 |
|
|
$ |
561,033 |
|
|
$ |
548,991 |
|
|
Interest bearing deposits |
|
|
2,646,843 |
|
|
|
2,725,822 |
|
|
|
2,741,146 |
|
|
|
2,063,909 |
|
|
|
1,984,507 |
|
|
Total deposits |
|
|
3,314,440 |
|
|
|
3,450,349 |
|
|
|
3,439,049 |
|
|
|
2,624,942 |
|
|
|
2,533,498 |
|
|
Customer repurchase agreements |
|
|
3,727 |
|
|
|
4,485 |
|
|
|
13,248 |
|
|
|
10,509 |
|
|
|
6,751 |
|
|
Federal Home Loan Bank advances |
|
|
405,000 |
|
|
|
330,000 |
|
|
|
330,000 |
|
|
|
420,000 |
|
|
|
355,000 |
|
|
Subordinated notes |
|
|
48,956 |
|
|
|
48,929 |
|
|
|
48,903 |
|
|
|
48,878 |
|
|
|
48,853 |
|
|
Junior subordinated debentures |
|
|
39,200 |
|
|
|
39,083 |
|
|
|
38,966 |
|
|
|
38,849 |
|
|
|
38,734 |
|
|
Other liabilities |
|
|
72,244 |
|
|
|
50,326 |
|
|
|
50,295 |
|
|
|
44,228 |
|
|
|
19,230 |
|
|
Total liabilities |
|
|
3,883,567 |
|
|
|
3,923,172 |
|
|
|
3,920,461 |
|
|
|
3,187,406 |
|
|
|
3,002,066 |
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock series A |
|
|
— |
|
|
|
— |
|
|
|
4,550 |
|
|
|
4,550 |
|
|
|
4,550 |
|
|
Preferred stock series B |
|
|
— |
|
|
|
— |
|
|
|
5,108 |
|
|
|
5,108 |
|
|
|
5,108 |
|
|
Common stock |
|
|
271 |
|
|
|
271 |
|
|
|
264 |
|
|
|
264 |
|
|
|
209 |
|
|
Additional paid-in-capital |
|
|
470,292 |
|
|
|
469,341 |
|
|
|
458,920 |
|
|
|
457,980 |
|
|
|
265,406 |
|
|
Treasury stock, at cost |
|
|
(9,881 |
) |
|
|
(2,288 |
) |
|
|
(2,285 |
) |
|
|
(2,254 |
) |
|
|
(1,853 |
) |
|
Retained earnings |
|
|
185,274 |
|
|
|
170,486 |
|
|
|
152,401 |
|
|
|
143,426 |
|
|
|
131,234 |
|
|
Accumulated other comprehensive income |
|
|
260 |
|
|
|
(1,203 |
) |
|
|
(2,317 |
) |
|
|
(1,849 |
) |
|
|
(1,710 |
) |
|
Total equity |
|
|
646,216 |
|
|
|
636,607 |
|
|
|
616,641 |
|
|
|
607,225 |
|
|
|
402,944 |
|
|
Total liabilities and equity |
|
$ |
4,529,783 |
|
|
$ |
4,559,779 |
|
|
$ |
4,537,102 |
|
|
$ |
3,794,631 |
|
|
$ |
3,405,010 |
|
5
Unaudited consolidated statement of income:
|
|
|
For the Three Months Ended |
|
|||||||||||||||||
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
45,094 |
|
|
$ |
44,435 |
|
|
$ |
41,257 |
|
|
$ |
38,148 |
|
|
$ |
36,883 |
|
|
Factored receivables, including fees |
|
|
24,556 |
|
|
|
28,070 |
|
|
|
27,939 |
|
|
|
20,791 |
|
|
|
15,303 |
|
|
Securities |
|
|
2,644 |
|
|
|
2,314 |
|
|
|
1,551 |
|
|
|
1,179 |
|
|
|
1,310 |
|
|
FHLB stock |
|
|
192 |
|
|
|
154 |
|
|
|
147 |
|
|
|
101 |
|
|
|
105 |
|
|
Cash deposits |
|
|
778 |
|
|
|
877 |
|
|
|
865 |
|
|
|
1,030 |
|
|
|
517 |
|
|
Total interest income |
|
|
73,264 |
|
|
|
75,850 |
|
|
|
71,759 |
|
|
|
61,249 |
|
|
|
54,118 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
8,218 |
|
|
|
7,931 |
|
|
|
6,219 |
|
|
|
4,631 |
|
|
|
4,277 |
|
|
Subordinated notes |
|
|
839 |
|
|
|
839 |
|
|
|
837 |
|
|
|
838 |
|
|
|
837 |
|
|
Junior subordinated debentures |
|
|
760 |
|
|
|
717 |
|
|
|
714 |
|
|
|
713 |
|
|
|
597 |
|
|
Other borrowings |
|
|
2,136 |
|
|
|
1,482 |
|
|
|
2,207 |
|
|
|
1,810 |
|
|
|
1,277 |
|
|
Total interest expense |
|
|
11,953 |
|
|
|
10,969 |
|
|
|
9,977 |
|
|
|
7,992 |
|
|
|
6,988 |
|
|
Net interest income |
|
|
61,311 |
|
|
|
64,881 |
|
|
|
61,782 |
|
|
|
53,257 |
|
|
|
47,130 |
|
|
Provision for loan losses |
|
|
1,014 |
|
|
|
1,910 |
|
|
|
6,803 |
|
|
|
4,906 |
|
|
|
2,548 |
|
|
Net interest income after provision for loan losses |
|
|
60,297 |
|
|
|
62,971 |
|
|
|
54,979 |
|
|
|
48,351 |
|
|
|
44,582 |
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits |
|
|
1,606 |
|
|
|
1,702 |
|
|
|
1,412 |
|
|
|
1,210 |
|
|
|
1,145 |
|
|
Card income |
|
|
1,844 |
|
|
|
1,999 |
|
|
|
1,877 |
|
|
|
1,394 |
|
|
|
1,244 |
|
|
Net OREO gains (losses) and valuation adjustments |
|
|
209 |
|
|
|
37 |
|
|
|
65 |
|
|
|
(528 |
) |
|
|
(88 |
) |
|
Net gains (losses) on sale of securities |
|
|
(11 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(272 |
) |
|
Fee income |
|
|
1,612 |
|
|
|
1,636 |
|
|
|
1,593 |
|
|
|
1,121 |
|
|
|
800 |
|
|
Insurance commissions |
|
|
919 |
|
|
|
846 |
|
|
|
1,113 |
|
|
|
819 |
|
|
|
714 |
|
|
Gain on sale of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,071 |
|
|
Other |
|
|
1,359 |
|
|
|
574 |
|
|
|
(1 |
) |
|
|
929 |
|
|
|
558 |
|
|
Total non-interest income |
|
|
7,538 |
|
|
|
6,794 |
|
|
|
6,059 |
|
|
|
4,945 |
|
|
|
5,172 |
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
26,439 |
|
|
|
25,586 |
|
|
|
24,695 |
|
|
|
20,527 |
|
|
|
19,404 |
|
|
Occupancy, furniture and equipment |
|
|
4,522 |
|
|
|
4,402 |
|
|
|
3,553 |
|
|
|
3,014 |
|
|
|
3,054 |
|
|
FDIC insurance and other regulatory assessments |
|
|
299 |
|
|
|
184 |
|
|
|
363 |
|
|
|
383 |
|
|
|
199 |
|
|
Professional fees |
|
|
1,865 |
|
|
|
1,837 |
|
|
|
3,384 |
|
|
|
2,078 |
|
|
|
1,640 |
|
|
Amortization of intangible assets |
|
|
2,402 |
|
|
|
2,438 |
|
|
|
2,064 |
|
|
|
1,361 |
|
|
|
1,117 |
|
|
Advertising and promotion |
|
|
1,604 |
|
|
|
1,036 |
|
|
|
1,609 |
|
|
|
1,300 |
|
|
|
1,029 |
|
|
Communications and technology |
|
|
4,874 |
|
|
|
4,388 |
|
|
|
7,252 |
|
|
|
3,271 |
|
|
|
3,359 |
|
|
Other |
|
|
6,561 |
|
|
|
7,091 |
|
|
|
6,026 |
|
|
|
5,469 |
|
|
|
4,240 |
|
|
Total non-interest expense |
|
|
48,566 |
|
|
|
46,962 |
|
|
|
48,946 |
|
|
|
37,403 |
|
|
|
34,042 |
|
|
Net income before income tax |
|
|
19,269 |
|
|
|
22,803 |
|
|
|
12,092 |
|
|
|
15,893 |
|
|
|
15,712 |
|
|
Income tax expense |
|
|
4,481 |
|
|
|
4,718 |
|
|
|
2,922 |
|
|
|
3,508 |
|
|
|
3,644 |
|
|
Net income |
|
$ |
14,788 |
|
|
$ |
18,085 |
|
|
$ |
9,170 |
|
|
$ |
12,385 |
|
|
$ |
12,068 |
|
|
Dividends on preferred stock |
|
|
— |
|
|
|
— |
|
|
|
(195 |
) |
|
|
(193 |
) |
|
|
(190 |
) |
|
Net income available to common stockholders |
|
$ |
14,788 |
|
|
$ |
18,085 |
|
|
$ |
8,975 |
|
|
$ |
12,192 |
|
|
$ |
11,878 |
|
6
|
|
|
For the Three Months Ended |
|
|||||||||||||||||
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|||||
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income to common stockholders |
|
$ |
14,788 |
|
|
$ |
18,085 |
|
|
$ |
8,975 |
|
|
$ |
12,192 |
|
|
$ |
11,878 |
|
|
Weighted average common shares outstanding |
|
|
26,679,724 |
|
|
|
26,666,554 |
|
|
|
26,178,194 |
|
|
|
25,519,108 |
|
|
|
20,721,363 |
|
|
Basic earnings per common share |
|
$ |
0.55 |
|
|
$ |
0.68 |
|
|
$ |
0.34 |
|
|
$ |
0.48 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income to common stockholders |
|
$ |
14,788 |
|
|
$ |
18,085 |
|
|
$ |
8,975 |
|
|
$ |
12,192 |
|
|
$ |
11,878 |
|
|
Dilutive effect of preferred stock |
|
|
— |
|
|
|
— |
|
|
|
195 |
|
|
|
193 |
|
|
|
190 |
|
|
Net income to common stockholders - diluted |
|
$ |
14,788 |
|
|
$ |
18,085 |
|
|
$ |
9,170 |
|
|
$ |
12,385 |
|
|
$ |
12,068 |
|
|
Weighted average common shares outstanding |
|
|
26,679,724 |
|
|
|
26,666,554 |
|
|
|
26,178,194 |
|
|
|
25,519,108 |
|
|
|
20,721,363 |
|
|
Dilutive effects of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assumed conversion of Preferred A |
|
|
— |
|
|
|
89,240 |
|
|
|
315,773 |
|
|
|
315,773 |
|
|
|
315,773 |
|
|
Assumed conversion of Preferred B |
|
|
— |
|
|
|
100,176 |
|
|
|
354,471 |
|
|
|
354,471 |
|
|
|
354,471 |
|
|
Assumed exercises of stock options |
|
|
64,166 |
|
|
|
76,219 |
|
|
|
90,320 |
|
|
|
86,821 |
|
|
|
83,872 |
|
|
Restricted stock awards |
|
|
49,795 |
|
|
|
46,457 |
|
|
|
45,796 |
|
|
|
37,417 |
|
|
|
85,045 |
|
|
Restricted stock units |
|
|
— |
|
|
|
1,303 |
|
|
|
7,276 |
|
|
|
2,288 |
|
|
|
— |
|
|
Performance stock units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Weighted average shares outstanding - diluted |
|
|
26,793,685 |
|
|
|
26,979,949 |
|
|
|
26,991,830 |
|
|
|
26,315,878 |
|
|
|
21,560,524 |
|
|
Diluted earnings per common share |
|
$ |
0.55 |
|
|
$ |
0.67 |
|
|
$ |
0.34 |
|
|
$ |
0.47 |
|
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows: |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|||||||||||||||||
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
|
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|||||
|
Assumed conversion of Preferred A |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Assumed conversion of Preferred B |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Stock options |
|
|
50,752 |
|
|
|
51,952 |
|
|
|
51,952 |
|
|
|
51,952 |
|
|
|
— |
|
|
Restricted stock awards |
|
|
13,290 |
|
|
|
14,513 |
|
|
|
14,513 |
|
|
|
— |
|
|
|
— |
|
|
Restricted stock units |
|
|
58,400 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Performance stock units |
|
|
58,400 |
|
|
|
59,658 |
|
|
|
59,658 |
|
|
|
59,658 |
|
|
|
— |
|
7
Loans held for investment summarized as of:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|||||
|
Commercial real estate |
|
$ |
1,093,882 |
|
|
$ |
992,080 |
|
|
$ |
906,494 |
|
|
$ |
766,839 |
|
|
$ |
781,006 |
|
|
Construction, land development, land |
|
|
145,002 |
|
|
|
179,591 |
|
|
|
190,920 |
|
|
|
147,852 |
|
|
|
143,876 |
|
|
1-4 family residential properties |
|
|
194,067 |
|
|
|
190,185 |
|
|
|
194,752 |
|
|
|
122,653 |
|
|
|
122,979 |
|
|
Farmland |
|
|
156,299 |
|
|
|
170,540 |
|
|
|
177,313 |
|
|
|
177,060 |
|
|
|
184,064 |
|
|
Commercial |
|
|
1,117,640 |
|
|
|
1,114,971 |
|
|
|
1,123,598 |
|
|
|
1,006,443 |
|
|
|
930,283 |
|
|
Factored receivables |
|
|
570,663 |
|
|
|
617,791 |
|
|
|
611,285 |
|
|
|
603,812 |
|
|
|
397,145 |
|
|
Consumer |
|
|
27,941 |
|
|
|
29,822 |
|
|
|
31,423 |
|
|
|
28,775 |
|
|
|
29,244 |
|
|
Mortgage warehouse |
|
|
307,375 |
|
|
|
313,664 |
|
|
|
276,358 |
|
|
|
343,028 |
|
|
|
285,388 |
|
|
Total loans |
|
$ |
3,612,869 |
|
|
$ |
3,608,644 |
|
|
$ |
3,512,143 |
|
|
$ |
3,196,462 |
|
|
$ |
2,873,985 |
|
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:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|||||
|
Equipment |
|
$ |
364,447 |
|
|
$ |
352,037 |
|
|
$ |
323,832 |
|
|
$ |
290,314 |
|
|
$ |
260,502 |
|
|
Asset based lending (General) |
|
|
174,447 |
|
|
|
214,110 |
|
|
|
273,096 |
|
|
|
261,412 |
|
|
|
230,314 |
|
|
Premium finance |
|
|
77,389 |
|
|
|
72,302 |
|
|
|
75,293 |
|
|
|
51,416 |
|
|
|
48,561 |
|
|
Factored receivables |
|
|
570,663 |
|
|
|
617,791 |
|
|
|
611,285 |
|
|
|
603,812 |
|
|
|
397,145 |
|
|
Commercial finance |
|
$ |
1,186,946 |
|
|
$ |
1,256,240 |
|
|
$ |
1,283,506 |
|
|
$ |
1,206,954 |
|
|
$ |
936,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial finance % of total loans |
|
|
33 |
% |
|
|
35 |
% |
|
|
37 |
% |
|
|
38 |
% |
|
|
33 |
% |
Additional information pertaining to our loan portfolio, summarized as of and for the quarters ended:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|||||
|
Average community banking |
|
$ |
2,340,295 |
|
|
$ |
2,268,262 |
|
|
$ |
2,039,624 |
|
|
$ |
1,897,678 |
|
|
$ |
1,816,921 |
|
|
Average commercial finance(1) |
|
|
1,194,748 |
|
|
|
1,264,209 |
|
|
|
1,254,095 |
|
|
|
1,024,369 |
|
|
|
949,938 |
|
|
Average total loans |
|
$ |
3,535,043 |
|
|
$ |
3,532,471 |
|
|
$ |
3,293,719 |
|
|
$ |
2,922,047 |
|
|
$ |
2,766,859 |
|
|
Community banking yield |
|
|
5.87 |
% |
|
|
5.78 |
% |
|
|
5.68 |
% |
|
|
5.80 |
% |
|
|
5.81 |
% |
|
Commercial finance yield(1) |
|
|
12.15 |
% |
|
|
12.39 |
% |
|
|
12.66 |
% |
|
|
12.08 |
% |
|
|
11.17 |
% |
|
Total loan yield |
|
|
7.99 |
% |
|
|
8.14 |
% |
|
|
8.33 |
% |
|
|
8.09 |
% |
|
|
7.65 |
% |
(1) Includes assets held for sale for the period ended March 31, 2018
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:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
|
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|||||
|
Factored receivable period end balance |
|
$ |
534,420,000 |
|
|
$ |
588,750,000 |
|
|
$ |
579,985,000 |
|
|
$ |
577,548,000 |
|
|
$ |
372,771,000 |
|
|
Yield on average receivable balance |
|
|
17.96 |
% |
|
|
18.24 |
% |
|
|
18.96 |
% |
|
|
18.70 |
% |
|
|
17.40 |
% |
|
Rolling twelve quarter annual charge-off rate |
|
|
0.39 |
% |
|
|
0.37 |
% |
|
|
0.38 |
% |
|
|
0.41 |
% |
|
|
0.50 |
% |
|
Factored receivables - transportation concentration |
|
|
81 |
% |
|
|
83 |
% |
|
|
83 |
% |
|
|
84 |
% |
|
|
86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, including fees |
|
$ |
23,803,000 |
|
|
$ |
27,578,000 |
|
|
$ |
27,420,000 |
|
|
$ |
20,314,000 |
|
|
$ |
14,780,000 |
|
|
Non-interest income |
|
|
1,077,000 |
|
|
|
1,032,000 |
|
|
|
942,000 |
|
|
|
920,000 |
|
|
|
590,000 |
|
|
Factored receivable total revenue |
|
|
24,880,000 |
|
|
|
28,610,000 |
|
|
|
28,362,000 |
|
|
|
21,234,000 |
|
|
|
15,370,000 |
|
|
Average net funds employed |
|
|
490,241,000 |
|
|
|
547,996,000 |
|
|
|
525,499,000 |
|
|
|
398,096,000 |
|
|
|
316,488,000 |
|
|
Yield on average net funds employed |
|
|
20.58 |
% |
|
|
20.71 |
% |
|
|
21.41 |
% |
|
|
21.39 |
% |
|
|
19.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable purchased |
|
$ |
1,325,140,000 |
|
|
$ |
1,541,332,000 |
|
|
$ |
1,503,049,000 |
|
|
$ |
1,162,810,000 |
|
|
$ |
912,336,000 |
|
|
Number of invoices purchased |
|
|
789,838 |
|
|
|
882,042 |
|
|
|
836,771 |
|
|
|
656,429 |
|
|
|
521,906 |
|
|
Average invoice size |
|
$ |
1,678 |
|
|
$ |
1,747 |
|
|
$ |
1,796 |
|
|
$ |
1,771 |
|
|
$ |
1,751 |
|
|
Average invoice size - transportation |
|
$ |
1,541 |
|
|
$ |
1,625 |
|
|
$ |
1,666 |
|
|
$ |
1,695 |
|
|
$ |
1,662 |
|
|
Average invoice size - non-transportation |
|
$ |
3,276 |
|
|
$ |
3,209 |
|
|
$ |
3,267 |
|
|
$ |
2,522 |
|
|
$ |
2,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net new clients |
|
|
191 |
|
|
|
259 |
|
|
|
422 |
|
|
|
2,072 |
|
|
|
280 |
|
|
Period end clients |
|
|
6,382 |
|
|
|
6,191 |
|
|
|
5,932 |
|
|
|
5,510 |
|
|
|
3,438 |
|
Deposits summarized as of:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
|||||
|
(Dollars in thousands) |
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
|||||
|
Non-interest bearing demand |
|
$ |
667,597 |
|
|
$ |
724,527 |
|
|
$ |
697,903 |
|
|
$ |
561,033 |
|
|
$ |
548,991 |
|
|
|
Interest bearing demand |
|
|
602,088 |
|
|
|
615,704 |
|
|
|
608,775 |
|
|
|
358,246 |
|
|
|
392,947 |
|
|
|
Individual retirement accounts |
|
|
112,696 |
|
|
|
115,583 |
|
|
|
118,459 |
|
|
|
101,380 |
|
|
|
105,558 |
|
|
|
Money market |
|
|
372,109 |
|
|
|
443,663 |
|
|
|
413,402 |
|
|
|
268,699 |
|
|
|
283,354 |
|
|
|
Savings |
|
|
372,914 |
|
|
|
369,389 |
|
|
|
373,062 |
|
|
|
239,127 |
|
|
|
244,103 |
|
|
|
Certificates of deposit |
|
|
851,411 |
|
|
|
835,127 |
|
|
|
854,048 |
|
|
|
751,290 |
|
|
|
783,651 |
|
|
|
Brokered deposits |
|
|
335,625 |
|
|
|
346,356 |
|
|
|
373,400 |
|
|
|
345,167 |
|
|
|
174,894 |
|
|
|
Total deposits |
|
$ |
3,314,440 |
|
|
$ |
3,450,349 |
|
|
$ |
3,439,049 |
|
|
$ |
2,624,942 |
|
|
$ |
2,533,498 |
|
|
9
Net interest margin summarized for the three months ended:
|
|
|
March 31, 2019 |
|
|
December 31, 2018 |
|
||||||||||||||||||
|
|
|
Average |
|
|
|
|
|
|
Average |
|
|
Average |
|
|
|
|
|
|
Average |
|
||||
|
(Dollars in thousands) |
|
Balance |
|
|
Interest |
|
|
Rate |
|
|
Balance |
|
|
Interest |
|
|
Rate |
|
||||||
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning cash balances |
|
$ |
126,372 |
|
|
$ |
778 |
|
|
|
2.50 |
% |
|
$ |
152,212 |
|
|
$ |
877 |
|
|
|
2.29 |
% |
|
Taxable securities |
|
|
275,642 |
|
|
|
2,169 |
|
|
|
3.19 |
% |
|
|
235,234 |
|
|
|
1,674 |
|
|
|
2.82 |
% |
|
Tax-exempt securities |
|
|
88,667 |
|
|
|
475 |
|
|
|
2.17 |
% |
|
|
123,575 |
|
|
|
640 |
|
|
|
2.05 |
% |
|
FHLB stock |
|
|
17,860 |
|
|
|
192 |
|
|
|
4.36 |
% |
|
|
16,426 |
|
|
|
154 |
|
|
|
3.72 |
% |
|
Loans |
|
|
3,535,043 |
|
|
|
69,650 |
|
|
|
7.99 |
% |
|
|
3,532,471 |
|
|
|
72,505 |
|
|
|
8.14 |
% |
|
Total interest earning assets |
|
$ |
4,043,584 |
|
|
$ |
73,264 |
|
|
|
7.35 |
% |
|
$ |
4,059,918 |
|
|
$ |
75,850 |
|
|
|
7.41 |
% |
|
Non-interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
458,176 |
|
|
|
|
|
|
|
|
|
|
|
429,000 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
4,501,760 |
|
|
|
|
|
|
|
|
|
|
$ |
4,488,918 |
|
|
|
|
|
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand |
|
$ |
606,096 |
|
|
$ |
374 |
|
|
|
0.25 |
% |
|
$ |
613,872 |
|
|
$ |
417 |
|
|
|
0.27 |
% |
|
Individual retirement accounts |
|
|
113,636 |
|
|
|
405 |
|
|
|
1.45 |
% |
|
|
116,575 |
|
|
|
385 |
|
|
|
1.31 |
% |
|
Money market |
|
|
408,953 |
|
|
|
1,331 |
|
|
|
1.32 |
% |
|
|
430,864 |
|
|
|
1,312 |
|
|
|
1.21 |
% |
|
Savings |
|
|
370,067 |
|
|
|
123 |
|
|
|
0.13 |
% |
|
|
373,650 |
|
|
|
159 |
|
|
|
0.17 |
% |
|
Certificates of deposit |
|
|
834,515 |
|
|
|
3,965 |
|
|
|
1.93 |
% |
|
|
862,500 |
|
|
|
3,749 |
|
|
|
1.72 |
% |
|
Brokered deposits |
|
|
353,829 |
|
|
|
2,020 |
|
|
|
2.32 |
% |
|
|
347,498 |
|
|
|
1,909 |
|
|
|
2.18 |
% |
|
Total deposits |
|
|
2,687,096 |
|
|
|
8,218 |
|
|
|
1.24 |
% |
|
|
2,744,959 |
|
|
|
7,931 |
|
|
|
1.15 |
% |
|
Subordinated notes |
|
|
48,940 |
|
|
|
839 |
|
|
|
6.95 |
% |
|
|
48,914 |
|
|
|
839 |
|
|
|
6.81 |
% |
|
Junior subordinated debentures |
|
|
39,125 |
|
|
|
760 |
|
|
|
7.88 |
% |
|
|
39,011 |
|
|
|
717 |
|
|
|
7.29 |
% |
|
Other borrowings |
|
|
336,667 |
|
|
|
2,136 |
|
|
|
2.57 |
% |
|
|
262,391 |
|
|
|
1,482 |
|
|
|
2.24 |
% |
|
Total interest bearing liabilities |
|
$ |
3,111,828 |
|
|
$ |
11,953 |
|
|
|
1.56 |
% |
|
$ |
3,095,275 |
|
|
$ |
10,969 |
|
|
|
1.41 |
% |
|
Non-interest bearing liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand deposits |
|
|
679,538 |
|
|
|
|
|
|
|
|
|
|
|
714,884 |
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
65,434 |
|
|
|
|
|
|
|
|
|
|
|
46,633 |
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
644,960 |
|
|
|
|
|
|
|
|
|
|
|
632,126 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
4,501,760 |
|
|
|
|
|
|
|
|
|
|
$ |
4,488,918 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
61,311 |
|
|
|
|
|
|
|
|
|
|
$ |
64,881 |
|
|
|
|
|
|
Interest spread |
|
|
|
|
|
|
|
|
|
|
5.79 |
% |
|
|
|
|
|
|
|
|
|
|
6.00 |
% |
|
Net interest margin |
|
|
|
|
|
|
|
|
|
|
6.15 |
% |
|
|
|
|
|
|
|
|
|
|
6.34 |
% |
10
Metrics and non-GAAP financial reconciliation:
|
|
|
As of and for the Three Months Ended |
|
|||||||||||||||||
|
(Dollars in thousands, |
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
except per share amounts) |
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|||||
|
Net income available to common stockholders |
|
$ |
14,788 |
|
|
$ |
18,085 |
|
|
$ |
8,975 |
|
|
$ |
12,192 |
|
|
$ |
11,878 |
|
|
Gain on sale of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,071 |
) |
|
Transaction related costs |
|
|
— |
|
|
|
— |
|
|
|
5,871 |
|
|
|
1,094 |
|
|
|
— |
|
|
Tax effect of adjustments |
|
|
— |
|
|
|
— |
|
|
|
(1,392 |
) |
|
|
(257 |
) |
|
|
248 |
|
|
Adjusted net income available to common stockholders |
|
$ |
14,788 |
|
|
$ |
18,085 |
|
|
$ |
13,454 |
|
|
$ |
13,029 |
|
|
$ |
11,055 |
|
|
Dilutive effect of convertible preferred stock |
|
|
— |
|
|
|
— |
|
|
|
195 |
|
|
|
193 |
|
|
|
190 |
|
|
Adjusted net income available to common stockholders - diluted |
|
$ |
14,788 |
|
|
$ |
18,085 |
|
|
$ |
13,649 |
|
|
$ |
13,222 |
|
|
$ |
11,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - diluted |
|
|
26,793,685 |
|
|
|
26,979,949 |
|
|
|
26,991,830 |
|
|
|
26,315,878 |
|
|
|
21,560,524 |
|
|
Adjusted effects of assumed Preferred Stock conversion |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted weighted average shares outstanding - diluted |
|
|
26,793,685 |
|
|
|
26,979,949 |
|
|
|
26,991,830 |
|
|
|
26,315,878 |
|
|
|
21,560,524 |
|
|
Adjusted diluted earnings per common share |
|
$ |
0.55 |
|
|
$ |
0.67 |
|
|
$ |
0.51 |
|
|
$ |
0.50 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common stockholders |
|
$ |
14,788 |
|
|
$ |
18,085 |
|
|
$ |
8,975 |
|
|
$ |
12,192 |
|
|
$ |
11,878 |
|
|
Average tangible common equity |
|
|
446,571 |
|
|
|
428,748 |
|
|
|
470,553 |
|
|
|
491,492 |
|
|
|
326,614 |
|
|
Return on average tangible common equity |
|
|
13.43 |
% |
|
|
16.73 |
% |
|
|
7.57 |
% |
|
|
9.95 |
% |
|
|
14.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
61,311 |
|
|
$ |
64,881 |
|
|
$ |
61,782 |
|
|
$ |
53,257 |
|
|
$ |
47,130 |
|
|
Non-interest income |
|
|
7,538 |
|
|
|
6,794 |
|
|
|
6,059 |
|
|
|
4,945 |
|
|
|
5,172 |
|
|
Operating revenue |
|
|
68,849 |
|
|
|
71,675 |
|
|
|
67,841 |
|
|
|
58,202 |
|
|
|
52,302 |
|
|
Gain on sale of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,071 |
) |
|
Adjusted operating revenue |
|
$ |
68,849 |
|
|
$ |
71,675 |
|
|
$ |
67,841 |
|
|
$ |
58,202 |
|
|
$ |
51,231 |
|
|
Non-interest expenses |
|
$ |
48,566 |
|
|
$ |
46,962 |
|
|
$ |
48,946 |
|
|
$ |
37,403 |
|
|
$ |
34,042 |
|
|
Transaction related costs |
|
|
— |
|
|
|
— |
|
|
|
(5,871 |
) |
|
|
(1,094 |
) |
|
|
— |
|
|
Adjusted non-interest expenses |
|
$ |
48,566 |
|
|
$ |
46,962 |
|
|
$ |
43,075 |
|
|
$ |
36,309 |
|
|
$ |
34,042 |
|
|
Adjusted efficiency ratio |
|
|
70.54 |
% |
|
|
65.52 |
% |
|
|
63.49 |
% |
|
|
62.38 |
% |
|
|
66.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net non-interest expense to average assets ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses |
|
$ |
48,566 |
|
|
$ |
46,962 |
|
|
$ |
48,946 |
|
|
$ |
37,403 |
|
|
$ |
34,042 |
|
|
Transaction related costs |
|
|
— |
|
|
|
— |
|
|
|
(5,871 |
) |
|
|
(1,094 |
) |
|
|
— |
|
|
Adjusted non-interest expenses |
|
$ |
48,566 |
|
|
$ |
46,962 |
|
|
$ |
43,075 |
|
|
$ |
36,309 |
|
|
$ |
34,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest income |
|
$ |
7,538 |
|
|
$ |
6,794 |
|
|
$ |
6,059 |
|
|
$ |
4,945 |
|
|
$ |
5,172 |
|
|
Gain on sale of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,071 |
) |
|
Adjusted non-interest income |
|
$ |
7,538 |
|
|
$ |
6,794 |
|
|
$ |
6,059 |
|
|
$ |
4,945 |
|
|
$ |
4,101 |
|
|
Adjusted net non-interest expenses |
|
$ |
41,028 |
|
|
$ |
40,168 |
|
|
$ |
37,016 |
|
|
$ |
31,364 |
|
|
$ |
29,941 |
|
|
Average total assets |
|
$ |
4,501,760 |
|
|
$ |
4,488,918 |
|
|
$ |
4,060,560 |
|
|
$ |
3,628,960 |
|
|
$ |
3,410,883 |
|
|
Adjusted net non-interest expense to average assets ratio |
|
|
3.70 |
% |
|
|
3.55 |
% |
|
|
3.62 |
% |
|
|
3.47 |
% |
|
|
3.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
646,216 |
|
|
$ |
636,607 |
|
|
$ |
616,641 |
|
|
$ |
607,225 |
|
|
$ |
402,944 |
|
|
Preferred stock liquidation preference |
|
|
— |
|
|
|
— |
|
|
|
(9,658 |
) |
|
|
(9,658 |
) |
|
|
(9,658 |
) |
|
Total common stockholders' equity |
|
|
646,216 |
|
|
|
636,607 |
|
|
|
606,983 |
|
|
|
597,567 |
|
|
|
393,286 |
|
|
Goodwill and other intangibles |
|
|
(197,015 |
) |
|
|
(199,417 |
) |
|
|
(201,842 |
) |
|
|
(117,777 |
) |
|
|
(63,923 |
) |
|
Tangible common stockholders' equity |
|
$ |
449,201 |
|
|
$ |
437,190 |
|
|
$ |
405,141 |
|
|
$ |
479,790 |
|
|
$ |
329,363 |
|
|
Common shares outstanding |
|
|
26,709,411 |
|
|
|
26,949,936 |
|
|
|
26,279,761 |
|
|
|
26,260,785 |
|
|
|
20,824,509 |
|
|
Tangible book value per share |
|
$ |
16.82 |
|
|
$ |
16.22 |
|
|
$ |
15.42 |
|
|
$ |
18.27 |
|
|
$ |
15.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at end of period |
|
$ |
4,529,783 |
|
|
$ |
4,559,779 |
|
|
$ |
4,537,102 |
|
|
$ |
3,794,631 |
|
|
$ |
3,405,010 |
|
|
Goodwill and other intangibles |
|
|
(197,015 |
) |
|
|
(199,417 |
) |
|
|
(201,842 |
) |
|
|
(117,777 |
) |
|
|
(63,923 |
) |
|
Adjusted total assets at period end |
|
$ |
4,332,768 |
|
|
$ |
4,360,362 |
|
|
$ |
4,335,260 |
|
|
$ |
3,676,854 |
|
|
$ |
3,341,087 |
|
|
Tangible common stockholders' equity ratio |
|
|
10.37 |
% |
|
|
10.03 |
% |
|
|
9.35 |
% |
|
|
13.05 |
% |
|
|
9.86 |
% |
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 |
|
|||||||||||||||||
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|||||
|
Loan discount accretion |
|
$ |
1,557 |
|
|
$ |
1,411 |
|
|
$ |
1,271 |
|
|
$ |
3,637 |
|
|
$ |
1,977 |
|
|
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
Q1 2019 earnings release April 17, 2019 Exhibit 99.2
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., and the operating assets of Interstate Capital Corporation and certain of its affiliates) and any future acquisitions; changes in management personnel; interest rate risk; concentration of our factoring services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets, or deferred tax assets; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally, or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities, and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of the Federal Deposit Insurance Corporation insurance and other coverages; failure to receive regulatory approval for future acquisitions; and increases in our capital requirements. While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2019. Non-GAAP Financial Measures This 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 March 31, 2019. PAGE DISCLAIMER
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 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 PAG PAGE E 23% Texas Geographic Lending Concentrations1 as of March 31, 2019 1 Excludes factored receivables 26% Colorado 1% Kansas 7% Iowa 15% Illinois 5% New Mexico
PLATFORM OVERVIEW – BRANCH NETWORK PAPAGE GE 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 PAGEPAGE Community Banking Commercial Finance Loans Held for Investment Chart data labels – dollars in millions 43190 43281 43373 43465 43555 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Community Banking 1,937.463 1,989.508 2,228.6370000000002 2,634.4520000000002 2,425.9229999999998 Equipment 260.50200000000001 290.31400000000002 323.83199999999999 109.812 364.447 0.30704598187280635 Commercial Finance: Asset based lending (General) 230.31399999999999 261.41199999999998 273.096 104.974 174.447 0.14697130282253784 Premium Finance 48.561 51.415999999999997 75.293000000000006 141.61500000000001 77.388999999999996 6.520010177379594E-2 Factored receivables 397.14499999999998 603.81200000000001 611.28499999999997 617.79100000000005 570.66300000000001 0.48078261353085994 Q1 2019 Commercial Finance Products $1,186.9459999999999 Community Banking $2,425.9229999999998 Real Estate & Farmland $1,589.25 Commercial Real Estate $1,093.8820000000001 Commercial $501.35700000000008 Construction, Land Development, Land $145.00200000000001 Consumer $27.940999999999999 1-4 Family Residential Properties $194.06700000000001 Mortgage Warehouse $307.375 Farmland $156.29900000000001 Commercial $501.35700000000008 Consumer $27.940999999999999 Community Banking Mortgage Warehouse $307.375 Agriculture $138.19999999999999 <<<<<<<<<< MANUAL UPDATE REAL ESTATE Commercial Real Estate $1,093.9000000000001 Construction, Land & Development $145 1-4 Family Residential $194.1 Farmland $156.30000000000001 COMMERCIAL Agriculture $138.19999999999999 General $363.2 CONSUMER $27.9 MORTGAGE WAREHOUSE $307.39999999999998 FACTORED RECEIVABLES $2,426 Triumph Business Capital $534.40000000000009 $0 Triumph Commercial Finance $36.299999999999997 <<<<<<<<<< MANUAL UPDATE EQUIPMENT FINANCE $364.4 ASSET BASED LENDING $174.4 PREMIUM FINANCE $77.400000000000006 $1,186.9000000000001 43190 43281 43373 43465 43555 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Community Banking 1,937.463 1,989.508 2,228.6370000000002 2,634.4520000000002 2,425.9229999999998 Equipment 260.50200000000001 290.31400000000002 323.83199999999999 109.812 364.447 0.30704598187280635 Commercial Finance: Asset based lending (General) 230.31399999999999 261.41199999999998 273.096 104.974 174.447 0.14697130282253784 Premium Finance 48.561 51.415999999999997 75.293000000000006 141.61500000000001 77.388999999999996 6.520010177379594E-2 Factored receivables 397.14499999999998 603.81200000000001 611.28499999999997 617.79100000000005 570.66300000000001 0.48078261353085994 Q1 2019 Commercial Finance Products $1,186.9459999999999 Community Banking $2,426.229999999997 <<<<<<<<<< MANUAL Round Real Estate & Farmland $1,589.25 Commercial Real Estate $1,093.8820000000001 Commercial $501.35700000000008 Construction, Land Development, Land $145.00200000000001 Consumer $27.940999999999999 1-4 Family Residential Properties $194.06700000000001 Mortgage Warehouse $307.375 Farmland $156.29900000000001 Commercial $501.35700000000008 Consumer $27.940999999999999 Community Banking Mortgage Warehouse $307.375 Agriculture $138.19999999999999 <<<<<<<<<< MANUAL UPDATE REAL ESTATE Commercial Real Estate $1,093.9000000000001 Construction, Land & Development $145 1-4 Family Residential $194.1 Farmland $156.30000000000001 COMMERCIAL Agriculture $138.19999999999999 General $363.2 CONSUMER $27.9 MORTGAGE WAREHOUSE $307.39999999999998 FACTORED RECEIVABLES $2,426 Triumph Business Capital $534.40000000000009 $0 Triumph Commercial Finance $36.299999999999997 <<<<<<<<<< MANUAL UPDATE EQUIPMENT FINANCE $364.4 ASSET BASED LENDING $174.4 PREMIUM FINANCE $77.400000000000006 $1,186.9000000000001 2425.9 1186.9000000000001 3612.8
Return on Average Assets (“ROAA”) Net Overhead Ratio Net Interest Income to Average Assets Credit Costs Pre-Provision Net Revenue Taxes 5.52% 3.70% 1.82% 0.09% 0.40% LONG TERM PERFORMANCE GOALS VS ACTUAL Q1 PAPAGE GE Annualized performance metrics presented are for the three months ended March 31, 2019. Reconciliations of these financial measures can be found at the end of the presentation. Goal 5.50 - 6.00% Goal > 2.70% Goal < 0.30% Goal ~ 0.50% Goal > 1.80% Goal 2.80 - 3.30% 1.33%
INVESTMENT CONSIDERATIONS PAGEPAGE 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.
Q1 2019 RESULTS AND RECENT DEVELOPMENTS PAGE Diluted earnings per share of $0.55 for the quarter Total loans held for investment portfolio growth of $4.2 million – consistent with seasonal first quarter loan growth experienced in prior years Total real estate loan growth of $56.9 million Commercial finance loan portfolio decrease of $69.3 million, including a $47.1 million decrease in factored receivables and a $39.7 million decrease in asset-based lending, partially offset by a $12.4 million increase in equipment lending and a $5.1 million increase in premium finance lending Repurchased 247,312 shares into treasury stock under the stock repurchase program at an average price of $30.51, for a total of $7.6 million $14.8 million Net income to common stockholders COMMERCIAL FINANCE LOAN GROWTH (5.5)% NIM 6.15% Net Interest Margin1 ROAA 1.33% Return on Average Assets TCE/TA 10.37% Tangible Common Equity / Tangible Assets2 1 Includes discount accretion on purchased loans of $1,557 in Q1 2019 2 Reconciliations of non-GAAP financial measures can be found at the end of the presentation
LOAN YIELDS AND NET INTEREST MARGIN PAGPAGE E Loan yields and Net Interest Margin *Includes discount accretion on purchased loans of $1,977 in 1Q18, $3,637 in 2Q18, $1,271 in 3Q18, $1,411 in 4Q18, and $1,557 in 1Q19 (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. Q1 2019 SNL data not available
TRIUMPH BUSINESS CAPITAL FACTORING PAGE PAGE Yield of 17.96% in the current quarter Average annual charge-off rate of 0.39% over the past 3 years 6,382 factoring clients at March 31, 2019 * 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 PAGPAGE E ~$60 Billion
LOAN PORTFOLIO PAGE
DEPOSIT MIX AND GROWTH PAGPAGE E *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. Adjusted metrics exclude material gains and expenses related to merger and acquisition-related activities, net of tax where applicable Includes discount accretion on purchased loans of $1,977 in 1Q18, $3,637 in 2Q18, $1,271 in 3Q18, $1,411 in 4Q18, and $1,557 in 1Q19 (dollars in thousands) Asset quality ratios exclude loans held for sale Current quarter ratios are preliminary 43555QTD 43465QTD 43373QTD 43281QTD 43190QTD 43555 43465 43373 43281 43190 As of and For the Three Months Ended Key Metrics March 31, December 31, September 30, June 30, March 31, 2019 2018 2018 2018 2018 Performance ratios - annualized ROAA Return on average assets 1.332190367705069% 1.598366446545838% .895888860348001% 1.368913918307048% 1.43488217291413% ROATCE Return on average tangible common equity (ROATCE) (1) 0.13429444272197608 0.16734623929529752 7.566729599617285% 9.950252430952552% 0.14748163086412747 Yield_Loans Yield on loans(2) 7.99% 8.14% 8.33% 8.9% 7.65% CostOfTotalDeposits Cost of total deposits .989966407274788% .909444799833016% .854826457502392% .728648800964141% .676491909921952% NIM Net interest margin(2) 6.149417161132849% 6.340318149705548% 6.587251816912991% 6.355209121569136% 6.615380371230043% Net_Nonint_Exp_Avg_Assets Net non-interest expense to average assets 3.696209686233955% 3.55021454457923% 4.190323750768411% 3.587460180756773% 3.432773044113241% Net_Nonint_Exp_Avg_Assets_Adj Adjusted net non-interest expense to average assets (1) 3.696209686233955% 3.55021454457923% 3.616676755337314% 3.46654615798428% 3.560131312614495% Efficiency_Unadjusted Efficiency ratio 0.70540688936196283 0.65521880825205669 0.721482498835187 0.6426335152399435 0.65088187279611953 Efficiency Adjusted efficiency ratio (1) 0.70540688936196283 0.65521880825205669 0.63493709562202605 0.62383665258488064 0.66449018609204968 Asset Quality(3) Nonperforming assets to total assets Non-performing assets to total assets .842263656429192% .839492440313445% .93030749584206% 1.27793716964838% 1.467837098863146% ALLL to total loans ALLL to total loans .764074202524365% .764026598356613% .776050405692479% .76794280676573% .696663343754404% Net charge-offs to average loans Net charge-offs to average loans 27730538396891915.277305383968919% 45176188551532438.451761885515324% .124316094470515% 13038804646194944.130388046461949% 46044991812014998.46044991812015% Capital(4) Tier 1 capital to average assets Tier 1 capital to average assets 0.113191 0.110794 0.11748529030204684 0.15002799999999999 0.11227588755937876 Tier 1 capital to risk-weighted assets Tier 1 capital to risk-weighted assets 0.11759699999999999 0.114901 0.11160782043180321 0.14676400000000001 0.11535735876901632 Common equity tier 1 capital to risk-weighted assets Common equity tier 1 capital to risk-weighted assets 0.108137 0.10545400000000001 9.963598284830128% 0.133244 0.10049263549053036 Total capital to risk-weighted assets Total capital to risk-weighted assets 0.13620499999999999 0.133522 0.13048520111929465 0.16733500000000001 0.13662722385560225 Per Share Amounts Common Book Value per share, basic Book value per share $24.194290588437159 $23.621812441780939 $23.09693951782895 $22.755096533481389 $18.885720879181353 Tangible common book value per common share Tangible book value per share (1) $16.818047069252106 $16.222260677353741 $15.416442086364484 $18.2701997701135 $15.816120581282371 EPS_Basic Basic earnings per common share $0.5542569290780448 $0.67818178436645749 $0.34282489208822919 $0.47778654941594234 $0.5731969840679455 EPS_Diluted Diluted earnings per common share $0.55189955143231295 $0.67030412762111058 $0.33970561035251029 $0.47064017295355659 $0.55972335628645931 DilutedEPS_Adj Adjusted diluted earnings per common share(1) $0.55189955143231295 $0.67 $0.51 $0.5 $0.52
NON-GAAP FINANCIAL RECONCILIATION PAGE 43555QTD 42916QTD 42825QTD 42460QTD 42185QTD Period end date 43555 43465 43373 43281 43190 Quarter YTD Columns hidden for March Days in Year 365 365 365 365 365 Days in Quarter 90 92 92 91 90 As of and for the Three Months Ended (Dollars in thousands, March 31, December 31, September 30, June 30, March 31, except per share amounts) 2019 2018 2018 2018 2018 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Gain on sale of subsidiary 0 0 0 0 -1,071 Transaction related costs 0 0 5,871 1,094 0 Tax effect of adjustments 0 0 -1,392 -,257 248.36490000000001 Adjusted net income available to common stockholders $14,788 $18,085 $13,454 $13,029 $11,055.3649 Manual Adj Dilutive effect of convertible preferred stock 0 0 195 193 190 Adjusted net income available to common stockholders - diluted $14,788 $18,085 $13,649 $13,222 $11,245.3649 Diluted_Shrs Weighted average shares outstanding - diluted 26,793,684.755555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Manual Adj Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,793,684.755555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 YTD YTD Adjusted diluted earnings per common share $0.55000000000000004 $0.67 $0.51 $0.5 $0.52 $-1.9068946623270744E-3 $0.16809311037283603 $-2.2599999999999998 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 AvgTangEq Average tangible common equity ,446,571.6126491609 ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 Return on average tangible common equity 0.13429789961239313 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 Adjusted efficiency ratio: Net interest income $61,311 $64,881 $61,782 $53,257 $47,130 Non-interest income 7,538 6,794 6,059 4,945 5,172 Operating revenue 68,849 71,675 67,841 58,202 52,302 Manual Adj Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted operating revenue $68,849 $71,675 $67,841 $58,202 $51,231 Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Manual Adj Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Adjusted efficiency ratio 0.70539877122398287 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Manual Adj Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Total non-interest income $7,538 $6,794 $6,059 $4,945 $5,172 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted non-interest income $7,538 $6,794 $6,059 $4,945 $4,101 Adjusted net non-interest expenses $41,028 $40,168 $37,016 $31,364 $29,941 AvgAssets Average total assets $4,501,760 $4,488,918 $4,060,560 $3,628,960 $3,410,883 CHECK ROUNDING $0 $0 Adjusted net non-interest expense to average assets ratio 3.6961395839256943E-2 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 Total stockholders' equity $,646,216 $,636,607 $,616,641 $,607,225 $,402,944 Preferred_Stock_A Preferred_Stock_B Preferred stock liquidation preference 0 0 -9,658 -9,658 -9,658 Total common stockholders' equity ,646,216 ,636,607 ,606,983 ,597,567 ,393,286 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Tangible common stockholders' equity $,449,201 $,437,190 $,405,141 $,479,790 $,329,363 Common shares outstanding, end of period Common shares outstanding 26,709,411 26,949,936 26,279,761 26,260,785 20,824,509 Tangible book value per share $16.818079589999197 $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 Total assets at end of period $4,529,783 $4,559,779 $4,537,102 $3,794,631 $3,405,010 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Adjusted total assets at period end $4,332,768 $4,360,362 $4,335,260 $3,676,854 $3,341,087 Tangible common stockholders' equity ratio 0.10367529486923832 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-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 Slide Deck Presentation: Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Gain on sale of subsidiary 0 0 0 0 -1,071 Transaction related costs 0 0 5,871 1,094 0 Tax effect of adjustments 0 0 -1,392 -,257 248.36490000000001 Adjusted net income available to common stockholders $14,788 $18,085 $13,454 $13,029 $11,055.3649 Dilutive effect of convertible preferred stock 0 0 195 193 190 Adjusted net income available to common stockholders - diluted $14,788 $18,085 $13,649 $13,222 $11,245.3649 Weighted average shares outstanding - diluted 26,793,684.755555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,793,684.755555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Adjusted diluted earnings per common share $0.55000000000000004 $0.67 $0.51 $0.5 $0.52 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Average tangible common equity ,446,571.6126491609 ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 Return on average tangible common equity 0.13429789961239313 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Adjusted efficiency ratio: Net interest income $61,311 $64,881 $61,782 $53,257 $47,130 Non-interest income 7,538 6,794 6,059 4,945 5,172 Operating revenue 68,849 71,675 67,841 58,202 52,302 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted operating revenue $68,849 $71,675 $67,841 $58,202 $51,231 Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Adjusted efficiency ratio 0.70539877122398287 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Total non-interest income $7,538 $6,794 $6,059 $4,945 $5,172 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted non-interest income $7,538 $6,794 $6,059 $4,945 $4,101 Adjusted net non-interest expenses $41,028 $40,168 $37,016 $31,364 $29,941 Average total assets 4,501,760 4,488,918 4,060,560 3,628,960 3,410,883 Adjusted net non-interest expense to average assets ratio 3.6961395839256943E-2 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Total stockholders' equity $,646,216 $,636,607 $,616,641 $,607,225 $,402,944 Preferred stock liquidation preference 0 0 -9,658 -9,658 -9,658 Total common stockholders' equity ,646,216 ,636,607 ,606,983 ,597,567 ,393,286 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Tangible common stockholders' equity $,449,201 $,437,190 $,405,141 $,479,790 $,329,363 Common shares outstanding at end of period 26,709,411 26,949,936 26,279,761 26,260,785 20,824,509 Tangible book value per share $16.818079589999197 $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 Total assets at end of period $4,529,783 $4,559,779 $4,537,102 $3,794,631 $3,405,010 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Adjusted total assets at period end $4,332,768 $4,360,362 $4,335,260 $3,676,854 $3,341,087 Tangible common stockholders' equity ratio 0.10367529486923832 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 90 365 Metrics and non-GAAP financial reconciliation (cont'd) For the Three Months Ended For the Three Months Ended March 31, 2019 March 31, 2019 (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 $61,311 Provision for loan losses $1,014 Int_Inc_Discount_Loans $1,557 Average total assets 4,501,760 Average total assets 4,501,760 Int_Inc_Discount_Factored_Rec $0 Net interest income to average assets 5.5199999999999999E-2 Credit costs to average assets 8.9999999999999998E-4 Net noninterest expense to average total assets: Taxes to average total assets: CHANGE LABEL TO ADJUSTED WHEN THERE IS A CORE RATIO Adjusted net noninterest expense Total noninterest expense $48,566 Income tax expense $4,481 Total noninterest income 7,538 Average total assets 4,501,760 Net noninterest expense $41,028 Taxes to average assets 4.0000000000000001E-3 Average total assets 4,501,760 Net noninterest expense to average assets ratio 3.6999999999999998E-2 Return on average total assets: Net interest income to average assets 5.52% Pre-provision net revenue to average total assets: Net noninterest expense to average assets ratio -3.7% Net interest income $61,311 Pre-provision net revenue to average assets 1.82% Net noninterest expense ,-41,028 Credit costs to average assets .09% Pre-provision net revenue $20,283 Taxes to average assets -0.4% Average total assets 4,501,760 Return on average assets 1.3299999999999999E-2 MANUAL ADJ FOR ROUNDING Pre-provision net revenue to average assets 1.8200000000000001E-2 0 0 $ Amount -2.1903677050686549E-5 Discount Accretion #REF! (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: Net interest income Provision for loan losses Average total assets Average total assets Net interest income to average assets Credit costs to average assets Net noninterest expense to average total assets: Taxes to average total assets: Total noninterest expense Income tax expense Transaction related costs Tax effect of adjustments Adjusted noninterest expense Adjusted tax expense Total noninterest income Average total assets Net noninterest expense Taxes to average assets Average total assets Net noninterest expense to average assets ratio Return on average total assets: Net interest income to average assets Pre-provision net revenue to average total assets: Net noninterest expense to average assets ratio Net interest income Pre-provision net revenue to average assets Net noninterest expense Credit costs to average assets Pre-provision net revenue Taxes to average assets Average total assets Return on average assets Pre-provision net revenue to average assets
NON-GAAP FINANCIAL RECONCILIATION PAGE 43555QTD 42916QTD 42825QTD 42460QTD 42185QTD Period end date 43555 43465 43373 43281 43190 Quarter YTD Columns hidden for March Days in Year 365 365 365 365 365 Days in Quarter 90 92 92 91 90 As of and for the Three Months Ended (Dollars in thousands, March 31, December 31, September 30, June 30, March 31, except per share amounts) 2019 2018 2018 2018 2018 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Gain on sale of subsidiary 0 0 0 0 -1,071 Transaction related costs 0 0 5,871 1,094 0 Tax effect of adjustments 0 0 -1,392 -,257 248.36490000000001 Adjusted net income available to common stockholders $14,788 $18,085 $13,454 $13,029 $11,055.3649 Manual Adj Dilutive effect of convertible preferred stock 0 0 195 193 190 Adjusted net income available to common stockholders - diluted $14,788 $18,085 $13,649 $13,222 $11,245.3649 Diluted_Shrs Weighted average shares outstanding - diluted 26,793,684.755555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Manual Adj Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,793,684.755555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 YTD YTD Adjusted diluted earnings per common share $0.55000000000000004 $0.67 $0.51 $0.5 $0.52 $-1.9068946623270744E-3 $0.16809311037283603 $-2.2599999999999998 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 AvgTangEq Average tangible common equity ,446,571.6126491609 ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 Return on average tangible common equity 0.13429789961239313 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 Adjusted efficiency ratio: Net interest income $61,311 $64,881 $61,782 $53,257 $47,130 Non-interest income 7,538 6,794 6,059 4,945 5,172 Operating revenue 68,849 71,675 67,841 58,202 52,302 Manual Adj Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted operating revenue $68,849 $71,675 $67,841 $58,202 $51,231 Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Manual Adj Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Adjusted efficiency ratio 0.70539877122398287 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Manual Adj Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Total non-interest income $7,538 $6,794 $6,059 $4,945 $5,172 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted non-interest income $7,538 $6,794 $6,059 $4,945 $4,101 Adjusted net non-interest expenses $41,028 $40,168 $37,016 $31,364 $29,941 AvgAssets Average total assets $4,501,760 $4,488,918 $4,060,560 $3,628,960 $3,410,883 CHECK ROUNDING $0 $0 Adjusted net non-interest expense to average assets ratio 3.6961395839256943E-2 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 Total stockholders' equity $,646,216 $,636,607 $,616,641 $,607,225 $,402,944 Preferred_Stock_A Preferred_Stock_B Preferred stock liquidation preference 0 0 -9,658 -9,658 -9,658 Total common stockholders' equity ,646,216 ,636,607 ,606,983 ,597,567 ,393,286 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Tangible common stockholders' equity $,449,201 $,437,190 $,405,141 $,479,790 $,329,363 Common shares outstanding, end of period Common shares outstanding 26,709,411 26,949,936 26,279,761 26,260,785 20,824,509 Tangible book value per share $16.818079589999197 $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 Total assets at end of period $4,529,783 $4,559,779 $4,537,102 $3,794,631 $3,405,010 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Adjusted total assets at period end $4,332,768 $4,360,362 $4,335,260 $3,676,854 $3,341,087 Tangible common stockholders' equity ratio 0.10367529486923832 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-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 Slide Deck Presentation: Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Gain on sale of subsidiary 0 0 0 0 -1,071 Transaction related costs 0 0 5,871 1,094 0 Tax effect of adjustments 0 0 -1,392 -,257 248.36490000000001 Adjusted net income available to common stockholders $14,788 $18,085 $13,454 $13,029 $11,055.3649 Dilutive effect of convertible preferred stock 0 0 195 193 190 Adjusted net income available to common stockholders - diluted $14,788 $18,085 $13,649 $13,222 $11,245.3649 Weighted average shares outstanding - diluted 26,793,684.755555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,793,684.755555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Adjusted diluted earnings per common share $0.55000000000000004 $0.67 $0.51 $0.5 $0.52 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Average tangible common equity ,446,571.6126491609 ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 Return on average tangible common equity 0.13429789961239313 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Adjusted efficiency ratio: Net interest income $61,311 $64,881 $61,782 $53,257 $47,130 Non-interest income 7,538 6,794 6,059 4,945 5,172 Operating revenue 68,849 71,675 67,841 58,202 52,302 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted operating revenue $68,849 $71,675 $67,841 $58,202 $51,231 Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Adjusted efficiency ratio 0.70539877122398287 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Total non-interest income $7,538 $6,794 $6,059 $4,945 $5,172 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted non-interest income $7,538 $6,794 $6,059 $4,945 $4,101 Adjusted net non-interest expenses $41,028 $40,168 $37,016 $31,364 $29,941 Average total assets 4,501,760 4,488,918 4,060,560 3,628,960 3,410,883 Adjusted net non-interest expense to average assets ratio 3.6961395839256943E-2 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Total stockholders' equity $,646,216 $,636,607 $,616,641 $,607,225 $,402,944 Preferred stock liquidation preference 0 0 -9,658 -9,658 -9,658 Total common stockholders' equity ,646,216 ,636,607 ,606,983 ,597,567 ,393,286 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Tangible common stockholders' equity $,449,201 $,437,190 $,405,141 $,479,790 $,329,363 Common shares outstanding at end of period 26,709,411 26,949,936 26,279,761 26,260,785 20,824,509 Tangible book value per share $16.818079589999197 $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 Total assets at end of period $4,529,783 $4,559,779 $4,537,102 $3,794,631 $3,405,010 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Adjusted total assets at period end $4,332,768 $4,360,362 $4,335,260 $3,676,854 $3,341,087 Tangible common stockholders' equity ratio 0.10367529486923832 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 90 365 Metrics and non-GAAP financial reconciliation (cont'd) For the Three Months Ended For the Three Months Ended March 31, 2019 March 31, 2019 (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 $61,311 Provision for loan losses $1,014 Int_Inc_Discount_Loans $1,557 Average total assets 4,501,760 Average total assets 4,501,760 Int_Inc_Discount_Factored_Rec $0 Net interest income to average assets 5.5199999999999999E-2 Credit costs to average assets 8.9999999999999998E-4 Net noninterest expense to average total assets: Taxes to average total assets: CHANGE LABEL TO ADJUSTED WHEN THERE IS A CORE RATIO Adjusted net noninterest expense Total noninterest expense $48,566 Income tax expense $4,481 Total noninterest income 7,538 Average total assets 4,501,760 Net noninterest expense $41,028 Taxes to average assets 4.0000000000000001E-3 Average total assets 4,501,760 Net noninterest expense to average assets ratio 3.6999999999999998E-2 Return on average total assets: Net interest income to average assets 5.52% Pre-provision net revenue to average total assets: Net noninterest expense to average assets ratio -3.7% Net interest income $61,311 Pre-provision net revenue to average assets 1.82% Net noninterest expense ,-41,028 Credit costs to average assets .09% Pre-provision net revenue $20,283 Taxes to average assets -0.4% Average total assets 4,501,760 Return on average assets 1.3299999999999999E-2 MANUAL ADJ FOR ROUNDING Pre-provision net revenue to average assets 1.8200000000000001E-2 0 0 $ Amount -2.1903677050686549E-5 Discount Accretion #REF! (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: Net interest income Provision for loan losses Average total assets Average total assets Net interest income to average assets Credit costs to average assets Net noninterest expense to average total assets: Taxes to average total assets: Total noninterest expense Income tax expense Transaction related costs Tax effect of adjustments Adjusted noninterest expense Adjusted tax expense Total noninterest income Average total assets Net noninterest expense Taxes to average assets Average total assets Net noninterest expense to average assets ratio Return on average total assets: Net interest income to average assets Pre-provision net revenue to average total assets: Net noninterest expense to average assets ratio Net interest income Pre-provision net revenue to average assets Net noninterest expense Credit costs to average assets Pre-provision net revenue Taxes to average assets Average total assets Return on average assets Pre-provision net revenue to average assets
NON-GAAP FINANCIAL RECONCILIATION PAGE 43555QTD 42916QTD 42825QTD 42460QTD 42185QTD Period end date 43555 43465 43373 43281 43190 Quarter YTD Columns hidden for March Days in Year 365 365 365 365 365 Days in Quarter 90 92 92 91 90 As of and for the Three Months Ended (Dollars in thousands, March 31, December 31, September 30, June 30, March 31, except per share amounts) 2019 2018 2018 2018 2018 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Gain on sale of subsidiary 0 0 0 0 -1,071 Transaction related costs 0 0 5,871 1,094 0 Tax effect of adjustments 0 0 -1,392 -,257 248.36490000000001 Adjusted net income available to common stockholders $14,788 $18,085 $13,454 $13,029 $11,055.3649 Manual Adj Dilutive effect of convertible preferred stock 0 0 195 193 190 Adjusted net income available to common stockholders - diluted $14,788 $18,085 $13,649 $13,222 $11,245.3649 Diluted_Shrs Weighted average shares outstanding - diluted 26,794,041.255555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Manual Adj Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,794,041.255555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 YTD YTD Adjusted diluted earnings per common share $0.55000000000000004 $0.67 $0.51 $0.5 $0.52 $-1.899551432312907E-3 $0.16810044330379281 $-2.2599999999999998 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 AvgTangEq Average tangible common equity ,446,571.6126491609 ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 Return on average tangible common equity 0.13429789961239313 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 Adjusted efficiency ratio: Net interest income $61,311 $64,881 $61,782 $53,257 $47,130 Non-interest income 7,538 6,794 6,059 4,945 5,172 Operating revenue 68,849 71,675 67,841 58,202 52,302 Manual Adj Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted operating revenue $68,849 $71,675 $67,841 $58,202 $51,231 Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Manual Adj Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Adjusted efficiency ratio 0.70539877122398287 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Manual Adj Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Total non-interest income $7,538 $6,794 $6,059 $4,945 $5,172 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted non-interest income $7,538 $6,794 $6,059 $4,945 $4,101 Adjusted net non-interest expenses $41,028 $40,168 $37,016 $31,364 $29,941 AvgAssets Average total assets $4,501,760 $4,488,918 $4,060,560 $3,628,960 $3,410,883 CHECK ROUNDING $0 $0 Adjusted net non-interest expense to average assets ratio 3.6961395839256943E-2 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 Total stockholders' equity $,646,216 $,636,607 $,616,641 $,607,225 $,402,944 Preferred_Stock_A Preferred_Stock_B Preferred stock liquidation preference 0 0 -9,658 -9,658 -9,658 Total common stockholders' equity ,646,216 ,636,607 ,606,983 ,597,567 ,393,286 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Tangible common stockholders' equity $,449,201 $,437,190 $,405,141 $,479,790 $,329,363 Common shares outstanding, end of period Common shares outstanding 26,709,411 26,949,936 26,279,761 26,260,785 20,824,509 Tangible book value per share $16.818079589999197 $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 Total assets at end of period $4,529,698 $4,559,779 $4,537,102 $3,794,631 $3,405,010 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Adjusted total assets at period end $4,332,683 $4,360,362 $4,335,260 $3,676,854 $3,341,087 Tangible common stockholders' equity ratio 0.10367732880526916 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-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 Slide Deck Presentation: Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Gain on sale of subsidiary 0 0 0 0 -1,071 Transaction related costs 0 0 5,871 1,094 0 Tax effect of adjustments 0 0 -1,392 -,257 248.36490000000001 Adjusted net income available to common stockholders $14,788 $18,085 $13,454 $13,029 $11,055.3649 Dilutive effect of convertible preferred stock 0 0 195 193 190 Adjusted net income available to common stockholders - diluted $14,788 $18,085 $13,649 $13,222 $11,245.3649 Weighted average shares outstanding - diluted 26,794,041.255555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,794,041.255555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Adjusted diluted earnings per common share $0.55000000000000004 $0.67 $0.51 $0.5 $0.52 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Average tangible common equity ,446,571.6126491609 ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 Return on average tangible common equity 0.13429789961239313 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Adjusted efficiency ratio: Net interest income $61,311 $64,881 $61,782 $53,257 $47,130 Non-interest income 7,538 6,794 6,059 4,945 5,172 Operating revenue 68,849 71,675 67,841 58,202 52,302 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted operating revenue $68,849 $71,675 $67,841 $58,202 $51,231 Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Adjusted efficiency ratio 0.70539877122398287 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Total non-interest income $7,538 $6,794 $6,059 $4,945 $5,172 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted non-interest income $7,538 $6,794 $6,059 $4,945 $4,101 Adjusted net non-interest expenses $41,028 $40,168 $37,016 $31,364 $29,941 Average total assets 4,501,760 4,488,918 4,060,560 3,628,960 3,410,883 Adjusted net non-interest expense to average assets ratio 3.6961395839256943E-2 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Total stockholders' equity $,646,216 $,636,607 $,616,641 $,607,225 $,402,944 Preferred stock liquidation preference 0 0 -9,658 -9,658 -9,658 Total common stockholders' equity ,646,216 ,636,607 ,606,983 ,597,567 ,393,286 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Tangible common stockholders' equity $,449,201 $,437,190 $,405,141 $,479,790 $,329,363 Common shares outstanding at end of period 26,709,411 26,949,936 26,279,761 26,260,785 20,824,509 Tangible book value per share $16.818079589999197 $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 Total assets at end of period $4,529,698 $4,559,779 $4,537,102 $3,794,631 $3,405,010 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Adjusted total assets at period end $4,332,683 $4,360,362 $4,335,260 $3,676,854 $3,341,087 Tangible common stockholders' equity ratio 0.10367732880526916 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 90 365 Metrics and non-GAAP financial reconciliation (cont'd) For the Three Months Ended For the Three Months Ended March 31, 2019 March 31, 2019 (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 $61,311 Provision for loan losses $1,014 Int_Inc_Discount_Loans $1,557 Average total assets 4,501,760 Average total assets 4,501,760 Int_Inc_Discount_Factored_Rec $0 Net interest income to average assets 5.5199999999999999E-2 Credit costs to average assets 8.9999999999999998E-4 Net noninterest expense to average total assets: Taxes to average total assets: Total noninterest expense $48,566 Income tax expense $4,481 Transaction related costs 0 Tax effect of adjustments 0 Adjusted noninterest expense 48,566 Adjusted tax expense 4,481 Total noninterest income 7,538 Average total assets 4,501,760 Net noninterest expense $41,028 Taxes to average assets 4.0000000000000001E-3 MANUAL ADJ FOR ROUNDING Average total assets 4,501,760 Net noninterest expense to average assets ratio 3.6999999999999998E-2 Return on average total assets: Net interest income to average assets 5.52% Pre-provision net revenue to average total assets: Net noninterest expense to average assets ratio -3.7% Net interest income $61,311 Pre-provision net revenue to average assets 1.82% CHANGE LABEL TO ADJUSTED WHEN THERE IS A CORE RATIO Adjusted net noninterest expense Net noninterest expense ,-41,028 Credit costs to average assets .09% Pre-provision net revenue $20,283 Taxes to average assets -0.4% Average total assets 4,501,760 Return on average assets 1.3299999999999999E-2 MANUAL ADJ FOR ROUNDING Pre-provision net revenue to average assets 1.8200000000000001E-2 MANUAL ADJ FOR ROUNDING 0 0 $ Amount -2.1903677050686549E-5 Discount Accretion #REF!
NON-GAAP FINANCIAL RECONCILIATION PPAGE AGE 43555QTD 42916QTD 42825QTD 42460QTD 42185QTD Period end date 43555 43465 43373 43281 43190 Quarter YTD Columns hidden for March Days in Year 365 365 365 365 365 Days in Quarter 90 92 92 91 90 As of and for the Three Months Ended (Dollars in thousands, March 31, December 31, September 30, June 30, March 31, except per share amounts) 2019 2018 2018 2018 2018 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Gain on sale of subsidiary 0 0 0 0 -1,071 Transaction related costs 0 0 5,871 1,094 0 Tax effect of adjustments 0 0 -1,392 -,257 248.36490000000001 Adjusted net income available to common stockholders $14,788 $18,085 $13,454 $13,029 $11,055.3649 Manual Adj Dilutive effect of convertible preferred stock 0 0 195 193 190 Adjusted net income available to common stockholders - diluted $14,788 $18,085 $13,649 $13,222 $11,245.3649 Diluted_Shrs Weighted average shares outstanding - diluted 26,794,041.255555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Manual Adj Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,794,041.255555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 YTD YTD Adjusted diluted earnings per common share $0.55000000000000004 $0.67 $0.51 $0.5 $0.52 $-1.899551432312907E-3 $0.16810044330379281 $-2.2599999999999998 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 AvgTangEq Average tangible common equity ,446,571.6126491609 ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 Return on average tangible common equity 0.13429789961239313 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 Adjusted efficiency ratio: Net interest income $61,311 $64,881 $61,782 $53,257 $47,130 Non-interest income 7,538 6,794 6,059 4,945 5,172 Operating revenue 68,849 71,675 67,841 58,202 52,302 Manual Adj Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted operating revenue $68,849 $71,675 $67,841 $58,202 $51,231 Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Manual Adj Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Adjusted efficiency ratio 0.70539877122398287 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Manual Adj Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Total non-interest income $7,538 $6,794 $6,059 $4,945 $5,172 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted non-interest income $7,538 $6,794 $6,059 $4,945 $4,101 Adjusted net non-interest expenses $41,028 $40,168 $37,016 $31,364 $29,941 AvgAssets Average total assets $4,501,760 $4,488,918 $4,060,560 $3,628,960 $3,410,883 CHECK ROUNDING $0 $0 Adjusted net non-interest expense to average assets ratio 3.6961395839256943E-2 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 Total stockholders' equity $,646,216 $,636,607 $,616,641 $,607,225 $,402,944 Preferred_Stock_A Preferred_Stock_B Preferred stock liquidation preference 0 0 -9,658 -9,658 -9,658 Total common stockholders' equity ,646,216 ,636,607 ,606,983 ,597,567 ,393,286 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Tangible common stockholders' equity $,449,201 $,437,190 $,405,141 $,479,790 $,329,363 Common shares outstanding, end of period Common shares outstanding 26,709,411 26,949,936 26,279,761 26,260,785 20,824,509 Tangible book value per share $16.818079589999197 $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 Total assets at end of period $4,529,698 $4,559,779 $4,537,102 $3,794,631 $3,405,010 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Adjusted total assets at period end $4,332,683 $4,360,362 $4,335,260 $3,676,854 $3,341,087 Tangible common stockholders' equity ratio 0.10367732880526916 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-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 Slide Deck Presentation: Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Gain on sale of subsidiary 0 0 0 0 -1,071 Transaction related costs 0 0 5,871 1,094 0 Tax effect of adjustments 0 0 -1,392 -,257 248.36490000000001 Adjusted net income available to common stockholders $14,788 $18,085 $13,454 $13,029 $11,055.3649 Dilutive effect of convertible preferred stock 0 0 195 193 190 Adjusted net income available to common stockholders - diluted $14,788 $18,085 $13,649 $13,222 $11,245.3649 Weighted average shares outstanding - diluted 26,794,041.255555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Adjusted effects of assumed Preferred Stock conversion 0 0 0 0 0 Adjusted weighted average shares outstanding - diluted 26,794,041.255555555 26,979,949.391304348 26,991,830.282608695 26,315,878.197802197 21,560,523.777777776 Adjusted diluted earnings per common share $0.55000000000000004 $0.67 $0.51 $0.5 $0.52 Net income available to common stockholders $14,788 $18,085 $8,975 $12,192 $11,878 Average tangible common equity ,446,571.6126491609 ,428,747.99729180406 ,470,553.33638741396 ,491,492.37677079404 ,326,613.87815996399 Return on average tangible common equity 0.13429789961239313 0.16734835426017747 7.5671202822384542E-2 9.9500000000000005E-2 0.14748879980322205 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Adjusted efficiency ratio: Net interest income $61,311 $64,881 $61,782 $53,257 $47,130 Non-interest income 7,538 6,794 6,059 4,945 5,172 Operating revenue 68,849 71,675 67,841 58,202 52,302 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted operating revenue $68,849 $71,675 $67,841 $58,202 $51,231 Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Adjusted efficiency ratio 0.70539877122398287 0.65520753400767351 0.63494052269276691 0.62380000000000002 0.66448049032812162 Adjusted net non-interest expense to average assets ratio: Non-interest expenses $48,566 $46,962 $48,946 $37,403 $34,042 Transaction related costs 0 0 -5,871 -1,094 0 Adjusted non-interest expenses $48,566 $46,962 $43,075 $36,309 $34,042 Total non-interest income $7,538 $6,794 $6,059 $4,945 $5,172 Gain on sale of subsidiary 0 0 0 0 -1,071 Adjusted non-interest income $7,538 $6,794 $6,059 $4,945 $4,101 Adjusted net non-interest expenses $41,028 $40,168 $37,016 $31,364 $29,941 Average total assets 4,501,760 4,488,918 4,060,560 3,628,960 3,410,883 Adjusted net non-interest expense to average assets ratio 3.6961395839256943E-2 3.5501244155728279E-2 3.6166675660928321E-2 3.4665760807685769E-2 3.559998653981649E-2 Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Total stockholders' equity $,646,216 $,636,607 $,616,641 $,607,225 $,402,944 Preferred stock liquidation preference 0 0 -9,658 -9,658 -9,658 Total common stockholders' equity ,646,216 ,636,607 ,606,983 ,597,567 ,393,286 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Tangible common stockholders' equity $,449,201 $,437,190 $,405,141 $,479,790 $,329,363 Common shares outstanding at end of period 26,709,411 26,949,936 26,279,761 26,260,785 20,824,509 Tangible book value per share $16.818079589999197 $16.22230197503994 $15.416464403919047 $18.270207840321603 $15.816123203673133 Total assets at end of period $4,529,698 $4,559,779 $4,537,102 $3,794,631 $3,405,010 Goodwill and other intangibles -,197,015 -,199,417 -,201,842 -,117,777 ,-63,923 Adjusted total assets at period end $4,332,683 $4,360,362 $4,335,260 $3,676,854 $3,341,087 Tangible common stockholders' equity ratio 0.10367732880526916 0.10026461105752228 9.3452526492067367E-2 0.13048927153485018 9.8579594006381749E-2 90 365 Metrics and non-GAAP financial reconciliation (cont'd) For the Three Months Ended For the Three Months Ended March 31, 2019 March 31, 2019 (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 $61,311 Provision for loan losses $1,014 Int_Inc_Discount_Loans $1,557 Average total assets 4,501,760 Average total assets 4,501,760 Int_Inc_Discount_Factored_Rec $0 Net interest income to average assets 5.5199999999999999E-2 Credit costs to average assets 8.9999999999999998E-4 Net noninterest expense to average total assets: Taxes to average total assets: CHANGE LABEL TO ADJUSTED WHEN THERE IS A CORE RATIO Adjusted net noninterest expense Total noninterest expense $48,566 Income tax expense $4,481 Total noninterest income 7,538 Average total assets 4,501,760 Net noninterest expense $41,028 Taxes to average assets 4.0000000000000001E-3 Average total assets 4,501,760 Net noninterest expense to average assets ratio 3.6999999999999998E-2 Return on average total assets: Net interest income to average assets 5.52% Pre-provision net revenue to average total assets: Net noninterest expense to average assets ratio -3.7% Net interest income $61,311 Pre-provision net revenue to average assets 1.82% Net noninterest expense ,-41,028 Credit costs to average assets .09% Pre-provision net revenue $20,283 Taxes to average assets -0.4% Average total assets 4,501,760 Return on average assets 1.3299999999999999E-2 MANUAL ADJ FOR ROUNDING Pre-provision net revenue to average assets 1.8200000000000001E-2 0 0 $ Amount -2.1903677050686549E-5 Discount Accretion #REF! (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: Net interest income Provision for loan losses Average total assets Average total assets Net interest income to average assets Credit costs to average assets Net noninterest expense to average total assets: Taxes to average total assets: Total noninterest expense Income tax expense Transaction related costs Tax effect of adjustments Adjusted noninterest expense Adjusted tax expense Total noninterest income Average total assets Net noninterest expense Taxes to average assets Average total assets Net noninterest expense to average assets ratio Return on average total assets: Net interest income to average assets Pre-provision net revenue to average total assets: Net noninterest expense to average assets ratio Net interest income Pre-provision net revenue to average assets Net noninterest expense Credit costs to average assets Pre-provision net revenue Taxes to average assets Average total assets Return on average assets Pre-provision net revenue to average assets
Appendix
Factoring 101 PAGE 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)
TriumphPay 101 PAGE 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.