UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(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 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
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. ☐
Securities registered pursuant to Section 12(b) of the Act:
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Item 2.02. Results of Operations and Financial Condition
On April 20, 2020, Triumph Bancorp, Inc. (the “Company”) issued a press release that announced its 2020 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, 2020, 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; the impact of COVID-19 on our business, including the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on the United States economy (including, without limitation, the CARES Act), and the resulting effect of all of such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; changes in management personnel; interest rate risk; concentration of our products and services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; risks related to the integration of acquired businesses and any future acquisitions; our ability to successfully identify and address the risks associated with our possible future acquisitions, and the risks that our prior and possible future acquisitions make it more difficult for investors to evaluate our business, financial condition and results of operations, and impairs our ability to accurately forecast our future performance; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of
FDIC, insurance and other coverages; failure to receive regulatory approval for future acquisitions; and increases in our capital requirements.
While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 11, 2020.
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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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
EXHIBIT INDEX
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Exhibit |
Description |
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99.1 |
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99.2 |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
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 20, 2020
Exhibit 99.1
Triumph Bancorp Reports First Quarter Net Loss to Common Stockholders of $4.5 Million
DALLAS – April 20, 2020 (GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”) today announced earnings and operating results for the first quarter of 2020.
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.
2020 First Quarter Highlights and Recent Developments
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For the first quarter of 2020, net loss available to common stockholders was $4.5 million. Diluted losses per share were $0.18. |
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• |
On January 1, 2020, we adopted Accounting Standard Update 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” commonly referred to as the Current Expected Credit Losses (“CECL”) model. |
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• |
For the quarter ended March 31, 2020, we recorded $20.3 million of total credit loss expense. $17.4 million of this is recorded as credit loss expense related to our loan portfolio summarized as follows: |
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Significant deterioration in our macroeconomic forecasts to reflect expected economic impact of COVID-19 resulted in approximately $10.5 million of credit loss expense. |
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$3.0 million of credit loss expense is due to net loan growth of $126.0 million and changes in the mix of our total loan portfolio. Net charge offs were $1.5 million and the change in specific reserves was $2.3 million. |
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The adoption of CECL on January 1, 2020, increased the ACL by $0.3 million. |
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Our ACL as a percentage of loans held for investment increased 34 basis points during the quarter to 1.04% at March 31, 2020. |
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For the quarter ended March 31, 2020, we recorded in other noninterest expense $2.9 million of credit loss expense related to off balance sheet commitments to lend to reserve for the contractual term of the commitments considering our economic forecast of future conditions. Total unfunded commitments subject to the reserve as of March 31, 2020 were $596.1 million. This includes a $105.3 million increase in unsettled liquid credit balances at the end of the period that created approximately $1.6 million of credit expense for the quarter. |
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Net interest margin (“NIM”) was 5.63% for the quarter ended March 31, 2020. |
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Total loans held for investment increased $126.0 million, or 3.0%, to $4.321 billion at March 31, 2020. Excluding premium finance loans, loan growth totaled $227.1 million. Average loans for the quarter decreased $88.6 million, or 2.1%, to $4.046 billion. |
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The total dollar value of invoices purchased by Triumph Business Capital for the quarter ended March 31, 2020 was $1.451 billion with an average invoice size of $1,651. The transportation average invoice size for the quarter was $1,481. |
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For the quarter ended March 31, 2020, TriumphPay processed 504,250 invoices paying 44,568 distinct carriers a total of $530.8 million. |
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During the quarter ended March 31, 2020, we repurchased 871,319 shares into treasury stock under our stock repurchase program at an average price of $40.81, for a total of $35.6 million, effectively completing the $50.0 million stock repurchase program authorized by our board of directors on October 16, 2019. |
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On April 20, 2020, the Company entered into an agreement to sell the assets (the “Disposal Group”) of Triumph Premium Finance (“TPF”) and exit its premium finance line of business. The decision to sell TPF was made during the three months ended March 31, 2020, and at March 31, 2020, the carrying amount of the Disposal Group, primarily consisting of $98.3 million of premium finance loans, was transferred to assets held for sale. |
1
Total loans held for investment increased $126.0 million, or 3.0%, during the first quarter to $4.321 billion at March 31, 2020. The commercial finance portfolio increased $135.1 million, or 10.8%, to $1.386 billion, the national lending portfolio increased $61.2 million, or 7.2%, to $911.6 million, and the community banking portfolio decreased $70.3 million, or 3.4%, to $2.023 billion during the quarter.
Total deposits were $3.682 billion at March 31, 2020, a decrease of $107.9 million, or 2.8%, in the first quarter of 2020. Non-interest-bearing deposits accounted for 23% of total deposits and non-time deposits accounted for 60% of total deposits at March 31, 2020.
Net Interest Income
We earned net interest income for the quarter ended March 31, 2020 of $62.5 million compared to $66.4 million for the quarter ended December 31, 2019.
Yields on loans for the quarter ended March 31, 2020 were down 26 bps from the prior quarter to 7.22%. The average cost of our total deposits was 1.05% for the quarter ended March 31, 2020 compared to 1.15% for the quarter ended December 31, 2019.
Asset Quality
Non-performing assets were 1.09% of total assets at March 31, 2020 compared to 0.87% of total assets at December 31, 2019. The ratio of past due to total loans increased to 1.99% at March 31, 2020 from 1.74% at December 31, 2019. We recorded total net charge-offs of $1.5 million, or 0.04% of average loans, for the quarter ended March 31, 2020 compared to net charge-offs of $3.2 million, or 0.08% of average loans, for the quarter ended December 31, 2019.
Non-Interest Income and Expense
We earned non-interest income for the quarter ended March 31, 2020 of $7.5 million compared to $8.7 million for the quarter ended December 31, 2019.
For the quarter ended March 31, 2020, non-interest expense totaled $57.7 million, which included $2.9 million of credit loss expense for off balance sheet commitments to lend. Credit loss expense for off balance sheet commitments to lend had a 420 basis point impact on our efficiency ratio this quarter. Non-interest expense for the quarter ended December 31, 2019 was $52.7 million.
Conference Call Information
Aaron P. Graft, Vice Chairman and CEO and Bryce Fowler, CFO will review the quarterly results in a conference call for investors and analysts beginning at 7:00 a.m. Central Time on Tuesday, April 21, 2020. Todd Ritterbusch, Chief Lending Officer, will also be available for questions.
To participate in the live conference call, please dial 1-855-940-9472 (Canada: 1-855-669-9657) and request to be joined into the Triumph Bancorp, Inc. call. A simultaneous audio-only webcast may be accessed via the Company's website at www.triumphbancorp.com through the Investor Relations, News & Events, Webcasts and Presentations links, or through a direct link here at: https://services.choruscall.com/links/tbk200421.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, national lending, and commercial finance products through its bank subsidiary, TBK Bank, SSB. www.triumphbancorp.com
Forward-Looking Statements
This press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; the impact of COVID-19 on our business, including the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on the United States economy (including, without limitation, the CARES Act), and the resulting effect of all of such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; changes in management personnel; interest rate risk; concentration of our products and services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; risks related to the integration of acquired businesses and any future acquisitions; our ability to successfully identify and address the risks associated with our possible future acquisitions, and the risks that our prior and possible future acquisitions make it more difficult for investors to evaluate our business, financial condition and results of operations, and impairs our ability to accurately forecast our future performance; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of FDIC, insurance and other coverages; failure to receive regulatory approval for future acquisitions; and increases in our capital requirements.
While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 11, 2020.
3
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.
4
The following table sets forth key metrics used by Triumph to monitor our operations. Footnotes in this table can be found in our definitions of non-GAAP financial measures at the end of this document.
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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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2020 |
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2019 |
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2019 |
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2019 |
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2019 |
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Financial Highlights: |
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Total assets |
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$ |
5,353,729 |
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$ |
5,060,297 |
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$ |
5,039,697 |
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$ |
4,783,189 |
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$ |
4,529,783 |
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Loans held for investment |
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$ |
4,320,548 |
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$ |
4,194,512 |
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$ |
4,209,417 |
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$ |
3,835,903 |
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$ |
3,612,869 |
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Deposits |
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$ |
3,682,015 |
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$ |
3,789,906 |
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$ |
3,697,833 |
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$ |
3,658,978 |
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$ |
3,314,440 |
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Net income available to common stockholders |
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$ |
(4,450 |
) |
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$ |
16,709 |
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$ |
14,317 |
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$ |
12,730 |
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$ |
14,788 |
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Performance Ratios - Annualized: |
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Return on average assets |
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(0.36 |
%) |
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1.31 |
% |
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1.17 |
% |
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1.09 |
% |
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1.33 |
% |
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Return on average total equity |
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(2.85 |
%) |
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10.24 |
% |
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8.79 |
% |
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7.83 |
% |
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9.30 |
% |
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Return on average tangible common equity (1) |
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(4.09 |
%) |
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14.54 |
% |
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12.56 |
% |
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11.19 |
% |
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13.43 |
% |
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Yield on loans(2) |
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7.22 |
% |
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7.48 |
% |
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7.63 |
% |
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7.95 |
% |
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7.99 |
% |
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Cost of interest bearing deposits |
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1.34 |
% |
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1.45 |
% |
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1.49 |
% |
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1.42 |
% |
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1.24 |
% |
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Cost of total deposits |
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1.05 |
% |
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1.15 |
% |
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1.19 |
% |
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1.14 |
% |
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0.99 |
% |
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Cost of total funds |
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1.23 |
% |
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1.35 |
% |
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1.41 |
% |
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1.40 |
% |
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1.28 |
% |
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Net interest margin(2) |
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5.63 |
% |
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5.72 |
% |
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5.85 |
% |
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5.99 |
% |
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6.15 |
% |
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Net non-interest expense to average assets |
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4.12 |
% |
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3.46 |
% |
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3.64 |
% |
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3.68 |
% |
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3.70 |
% |
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Efficiency ratio |
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82.44 |
% |
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70.15 |
% |
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71.93 |
% |
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71.37 |
% |
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70.54 |
% |
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Asset Quality:(3) |
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Past due to total loans(4) |
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1.99 |
% |
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1.74 |
% |
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1.91 |
% |
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1.60 |
% |
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2.17 |
% |
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Non-performing loans to total loans |
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1.26 |
% |
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0.97 |
% |
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|
1.00 |
% |
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0.96 |
% |
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0.95 |
% |
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Non-performing assets to total assets |
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1.09 |
% |
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0.87 |
% |
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0.91 |
% |
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0.86 |
% |
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0.84 |
% |
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ACL to non-performing loans(5) |
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82.37 |
% |
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71.63 |
% |
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75.58 |
% |
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79.91 |
% |
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80.70 |
% |
|
ACL to total loans(5) |
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1.04 |
% |
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0.69 |
% |
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0.76 |
% |
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0.77 |
% |
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0.76 |
% |
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Net charge-offs to average loans |
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0.04 |
% |
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0.08 |
% |
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0.01 |
% |
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0.05 |
% |
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0.03 |
% |
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Capital: |
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Tier 1 capital to average assets(6) |
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9.62 |
% |
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10.03 |
% |
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10.37 |
% |
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10.84 |
% |
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11.32 |
% |
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Tier 1 capital to risk-weighted assets(6) |
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9.03 |
% |
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10.29 |
% |
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10.08 |
% |
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11.08 |
% |
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11.76 |
% |
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Common equity tier 1 capital to risk-weighted assets(6) |
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8.24 |
% |
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9.46 |
% |
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9.26 |
% |
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10.19 |
% |
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10.81 |
% |
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Total capital to risk-weighted assets(5) |
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11.63 |
% |
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12.76 |
% |
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11.79 |
% |
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12.88 |
% |
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|
13.62 |
% |
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Total equity to total assets |
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11.01 |
% |
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12.58 |
% |
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|
12.57 |
% |
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13.45 |
% |
|
|
14.27 |
% |
|
Tangible common stockholders' equity to tangible assets(1) |
|
|
7.77 |
% |
|
|
9.16 |
% |
|
|
9.10 |
% |
|
|
9.78 |
% |
|
|
10.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
24.45 |
|
|
$ |
25.50 |
|
|
$ |
24.99 |
|
|
$ |
24.56 |
|
|
$ |
24.19 |
|
|
Tangible book value per share (1) |
|
$ |
16.64 |
|
|
$ |
17.88 |
|
|
$ |
17.40 |
|
|
$ |
17.13 |
|
|
$ |
16.82 |
|
|
Basic earnings (loss) per common share |
|
$ |
(0.18 |
) |
|
$ |
0.67 |
|
|
$ |
0.56 |
|
|
$ |
0.48 |
|
|
$ |
0.55 |
|
|
Diluted earnings (loss) per common share |
|
$ |
(0.18 |
) |
|
$ |
0.66 |
|
|
$ |
0.56 |
|
|
$ |
0.48 |
|
|
$ |
0.55 |
|
|
Shares outstanding end of period |
|
|
24,101,120 |
|
|
|
24,964,961 |
|
|
|
25,357,985 |
|
|
|
26,198,308 |
|
|
|
26,709,411 |
|
5
Unaudited consolidated balance sheet as of:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
|
$ |
208,414 |
|
|
$ |
197,880 |
|
|
$ |
115,043 |
|
|
$ |
209,305 |
|
|
$ |
171,950 |
|
|
Securities - available for sale |
|
|
302,122 |
|
|
|
248,820 |
|
|
|
302,917 |
|
|
|
329,991 |
|
|
|
339,465 |
|
|
Securities - held to maturity |
|
|
8,217 |
|
|
|
8,417 |
|
|
|
8,517 |
|
|
|
8,573 |
|
|
|
8,499 |
|
|
Equity securities |
|
|
5,678 |
|
|
|
5,437 |
|
|
|
5,543 |
|
|
|
5,479 |
|
|
|
5,183 |
|
|
Loans held for sale |
|
|
4,431 |
|
|
|
2,735 |
|
|
|
7,499 |
|
|
|
2,877 |
|
|
|
610 |
|
|
Loans held for investment |
|
|
4,320,548 |
|
|
|
4,194,512 |
|
|
|
4,209,417 |
|
|
|
3,835,903 |
|
|
|
3,612,869 |
|
|
Allowance for credit losses |
|
|
(44,732 |
) |
|
|
(29,092 |
) |
|
|
(31,895 |
) |
|
|
(29,416 |
) |
|
|
(27,605 |
) |
|
Loans, net |
|
|
4,275,816 |
|
|
|
4,165,420 |
|
|
|
4,177,522 |
|
|
|
3,806,487 |
|
|
|
3,585,264 |
|
|
Assets held for sale |
|
|
97,895 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
FHLB and other restricted stock |
|
|
37,080 |
|
|
|
19,860 |
|
|
|
23,960 |
|
|
|
18,037 |
|
|
|
21,191 |
|
|
Premises and equipment, net |
|
|
98,363 |
|
|
|
96,595 |
|
|
|
87,112 |
|
|
|
84,998 |
|
|
|
84,931 |
|
|
Other real estate owned ("OREO"), net |
|
|
2,540 |
|
|
|
3,009 |
|
|
|
2,849 |
|
|
|
3,351 |
|
|
|
3,073 |
|
|
Goodwill and intangible assets, net |
|
|
188,208 |
|
|
|
190,286 |
|
|
|
192,440 |
|
|
|
194,668 |
|
|
|
197,015 |
|
|
Bank-owned life insurance |
|
|
41,122 |
|
|
|
40,954 |
|
|
|
40,724 |
|
|
|
40,847 |
|
|
|
40,667 |
|
|
Deferred tax asset, net |
|
|
9,457 |
|
|
|
3,812 |
|
|
|
5,971 |
|
|
|
7,278 |
|
|
|
7,608 |
|
|
Other assets |
|
|
74,386 |
|
|
|
77,072 |
|
|
|
69,600 |
|
|
|
71,298 |
|
|
|
64,327 |
|
|
Total assets |
|
$ |
5,353,729 |
|
|
$ |
5,060,297 |
|
|
$ |
5,039,697 |
|
|
$ |
4,783,189 |
|
|
$ |
4,529,783 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
$ |
846,412 |
|
|
$ |
809,696 |
|
|
$ |
754,233 |
|
|
$ |
684,223 |
|
|
$ |
667,597 |
|
|
Interest bearing deposits |
|
|
2,835,603 |
|
|
|
2,980,210 |
|
|
|
2,943,600 |
|
|
|
2,974,755 |
|
|
|
2,646,843 |
|
|
Total deposits |
|
|
3,682,015 |
|
|
|
3,789,906 |
|
|
|
3,697,833 |
|
|
|
3,658,978 |
|
|
|
3,314,440 |
|
|
Customer repurchase agreements |
|
|
3,693 |
|
|
|
2,033 |
|
|
|
14,124 |
|
|
|
12,788 |
|
|
|
3,727 |
|
|
Federal Home Loan Bank advances |
|
|
850,000 |
|
|
|
430,000 |
|
|
|
530,000 |
|
|
|
305,000 |
|
|
|
405,000 |
|
|
Subordinated notes |
|
|
87,347 |
|
|
|
87,327 |
|
|
|
49,010 |
|
|
|
48,983 |
|
|
|
48,956 |
|
|
Junior subordinated debentures |
|
|
39,689 |
|
|
|
39,566 |
|
|
|
39,443 |
|
|
|
39,320 |
|
|
|
39,200 |
|
|
Other liabilities |
|
|
101,638 |
|
|
|
74,875 |
|
|
|
75,594 |
|
|
|
74,758 |
|
|
|
72,244 |
|
|
Total liabilities |
|
|
4,764,382 |
|
|
|
4,423,707 |
|
|
|
4,406,004 |
|
|
|
4,139,827 |
|
|
|
3,883,567 |
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
272 |
|
|
|
272 |
|
|
|
272 |
|
|
|
271 |
|
|
|
271 |
|
|
Additional paid-in-capital |
|
|
474,441 |
|
|
|
473,251 |
|
|
|
472,368 |
|
|
|
471,145 |
|
|
|
470,292 |
|
|
Treasury stock, at cost |
|
|
(102,677 |
) |
|
|
(67,069 |
) |
|
|
(52,632 |
) |
|
|
(27,468 |
) |
|
|
(9,881 |
) |
|
Retained earnings |
|
|
222,809 |
|
|
|
229,030 |
|
|
|
212,321 |
|
|
|
198,004 |
|
|
|
185,274 |
|
|
Accumulated other comprehensive income (loss) |
|
|
(5,498 |
) |
|
|
1,106 |
|
|
|
1,364 |
|
|
|
1,410 |
|
|
|
260 |
|
|
Total stockholders' equity |
|
|
589,347 |
|
|
|
636,590 |
|
|
|
633,693 |
|
|
|
643,362 |
|
|
|
646,216 |
|
|
Total liabilities and equity |
|
$ |
5,353,729 |
|
|
$ |
5,060,297 |
|
|
$ |
5,039,697 |
|
|
$ |
4,783,189 |
|
|
$ |
4,529,783 |
|
6
Unaudited consolidated statement of income:
|
|
|
For the Three Months Ended |
|
|||||||||||||||||
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
48,323 |
|
|
$ |
52,395 |
|
|
$ |
50,249 |
|
|
$ |
47,910 |
|
|
$ |
45,094 |
|
|
Factored receivables, including fees |
|
|
24,292 |
|
|
|
25,573 |
|
|
|
25,570 |
|
|
|
25,558 |
|
|
|
24,556 |
|
|
Securities |
|
|
2,107 |
|
|
|
2,379 |
|
|
|
2,784 |
|
|
|
2,667 |
|
|
|
2,644 |
|
|
FHLB and other restricted stock |
|
|
204 |
|
|
|
165 |
|
|
|
209 |
|
|
|
146 |
|
|
|
192 |
|
|
Cash deposits |
|
|
488 |
|
|
|
659 |
|
|
|
603 |
|
|
|
1,022 |
|
|
|
778 |
|
|
Total interest income |
|
|
75,414 |
|
|
|
81,171 |
|
|
|
79,415 |
|
|
|
77,303 |
|
|
|
73,264 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
9,677 |
|
|
|
10,961 |
|
|
|
11,036 |
|
|
|
10,010 |
|
|
|
8,218 |
|
|
Subordinated notes |
|
|
1,347 |
|
|
|
1,035 |
|
|
|
840 |
|
|
|
839 |
|
|
|
839 |
|
|
Junior subordinated debentures |
|
|
646 |
|
|
|
687 |
|
|
|
719 |
|
|
|
744 |
|
|
|
760 |
|
|
Other borrowings |
|
|
1,244 |
|
|
|
2,080 |
|
|
|
2,055 |
|
|
|
2,291 |
|
|
|
2,136 |
|
|
Total interest expense |
|
|
12,914 |
|
|
|
14,763 |
|
|
|
14,650 |
|
|
|
13,884 |
|
|
|
11,953 |
|
|
Net interest income |
|
|
62,500 |
|
|
|
66,408 |
|
|
|
64,765 |
|
|
|
63,419 |
|
|
|
61,311 |
|
|
Credit loss expense |
|
|
17,361 |
|
|
|
382 |
|
|
|
2,865 |
|
|
|
3,681 |
|
|
|
1,014 |
|
|
Net interest income after credit loss expense |
|
|
45,139 |
|
|
|
66,026 |
|
|
|
61,900 |
|
|
|
59,738 |
|
|
|
60,297 |
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits |
|
|
1,588 |
|
|
|
1,889 |
|
|
|
1,937 |
|
|
|
1,700 |
|
|
|
1,606 |
|
|
Card income |
|
|
1,800 |
|
|
|
1,943 |
|
|
|
2,015 |
|
|
|
2,071 |
|
|
|
1,844 |
|
|
Net OREO gains (losses) and valuation adjustments |
|
|
(257 |
) |
|
|
50 |
|
|
|
(56 |
) |
|
|
148 |
|
|
|
209 |
|
|
Net gains (losses) on sale of securities |
|
|
38 |
|
|
|
39 |
|
|
|
19 |
|
|
|
14 |
|
|
|
(11 |
) |
|
Fee income |
|
|
1,686 |
|
|
|
1,686 |
|
|
|
1,624 |
|
|
|
1,519 |
|
|
|
1,612 |
|
|
Insurance commissions |
|
|
1,051 |
|
|
|
1,092 |
|
|
|
1,247 |
|
|
|
961 |
|
|
|
919 |
|
|
Other |
|
|
1,571 |
|
|
|
1,967 |
|
|
|
956 |
|
|
|
1,210 |
|
|
|
1,359 |
|
|
Total non-interest income |
|
|
7,477 |
|
|
|
8,666 |
|
|
|
7,742 |
|
|
|
7,623 |
|
|
|
7,538 |
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
30,722 |
|
|
|
29,586 |
|
|
|
28,717 |
|
|
|
28,120 |
|
|
|
26,439 |
|
|
Occupancy, furniture and equipment |
|
|
5,182 |
|
|
|
4,667 |
|
|
|
4,505 |
|
|
|
4,502 |
|
|
|
4,522 |
|
|
FDIC insurance and other regulatory assessments |
|
|
315 |
|
|
|
(302 |
) |
|
|
(2 |
) |
|
|
303 |
|
|
|
299 |
|
|
Professional fees |
|
|
2,107 |
|
|
|
1,904 |
|
|
|
1,969 |
|
|
|
1,550 |
|
|
|
1,865 |
|
|
Amortization of intangible assets |
|
|
2,078 |
|
|
|
2,154 |
|
|
|
2,228 |
|
|
|
2,347 |
|
|
|
2,402 |
|
|
Advertising and promotion |
|
|
1,292 |
|
|
|
1,347 |
|
|
|
1,379 |
|
|
|
1,796 |
|
|
|
1,604 |
|
|
Communications and technology |
|
|
5,501 |
|
|
|
5,732 |
|
|
|
5,382 |
|
|
|
4,988 |
|
|
|
4,874 |
|
|
Other |
|
|
10,493 |
|
|
|
7,573 |
|
|
|
7,975 |
|
|
|
7,098 |
|
|
|
6,561 |
|
|
Total non-interest expense |
|
|
57,690 |
|
|
|
52,661 |
|
|
|
52,153 |
|
|
|
50,704 |
|
|
|
48,566 |
|
|
Net income (loss) before income tax |
|
|
(5,074 |
) |
|
|
22,031 |
|
|
|
17,489 |
|
|
|
16,657 |
|
|
|
19,269 |
|
|
Income tax expense (benefit) |
|
|
(624 |
) |
|
|
5,322 |
|
|
|
3,172 |
|
|
|
3,927 |
|
|
|
4,481 |
|
|
Net income (loss) |
|
$ |
(4,450 |
) |
|
$ |
16,709 |
|
|
$ |
14,317 |
|
|
$ |
12,730 |
|
|
$ |
14,788 |
|
7
|
|
|
For the Three Months Ended |
|
|||||||||||||||||
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) to common stockholders |
|
$ |
(4,450 |
) |
|
$ |
16,709 |
|
|
$ |
14,317 |
|
|
$ |
12,730 |
|
|
$ |
14,788 |
|
|
Weighted average common shares outstanding |
|
|
24,314,329 |
|
|
|
25,089,447 |
|
|
|
25,621,054 |
|
|
|
26,396,351 |
|
|
|
26,679,724 |
|
|
Basic earnings (loss) per common share |
|
$ |
(0.18 |
) |
|
$ |
0.67 |
|
|
$ |
0.56 |
|
|
$ |
0.48 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) to common stockholders - diluted |
|
$ |
(4,450 |
) |
|
$ |
16,709 |
|
|
$ |
14,317 |
|
|
$ |
12,730 |
|
|
$ |
14,788 |
|
|
Weighted average common shares outstanding |
|
|
24,314,329 |
|
|
|
25,089,447 |
|
|
|
25,621,054 |
|
|
|
26,396,351 |
|
|
|
26,679,724 |
|
|
Dilutive effects of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assumed exercises of stock options |
|
|
— |
|
|
|
69,865 |
|
|
|
60,068 |
|
|
|
59,962 |
|
|
|
64,166 |
|
|
Restricted stock awards |
|
|
— |
|
|
|
70,483 |
|
|
|
45,631 |
|
|
|
30,110 |
|
|
|
49,795 |
|
|
Restricted stock units |
|
|
— |
|
|
|
13,264 |
|
|
|
3,045 |
|
|
|
— |
|
|
|
— |
|
|
Performance stock units - market based |
|
|
— |
|
|
|
11,803 |
|
|
|
4,673 |
|
|
|
— |
|
|
|
— |
|
|
Performance stock units - performance based |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Weighted average shares outstanding - diluted |
|
|
24,314,329 |
|
|
|
25,254,862 |
|
|
|
25,734,471 |
|
|
|
26,486,423 |
|
|
|
26,793,685 |
|
|
Diluted earnings (loss) per common share |
|
$ |
(0.18 |
) |
|
$ |
0.66 |
|
|
$ |
0.56 |
|
|
$ |
0.48 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
|
Stock options |
|
|
225,055 |
|
|
|
66,019 |
|
|
|
67,023 |
|
|
|
70,037 |
|
|
|
50,752 |
|
|
Restricted stock awards |
|
|
147,748 |
|
|
|
— |
|
|
|
3,209 |
|
|
|
— |
|
|
|
13,290 |
|
|
Restricted stock units |
|
|
55,228 |
|
|
|
— |
|
|
|
— |
|
|
|
58,400 |
|
|
|
58,400 |
|
|
Performance stock units - market based |
|
|
67,707 |
|
|
|
55,228 |
|
|
|
55,228 |
|
|
|
70,879 |
|
|
|
58,400 |
|
|
Performance stock units - performance based |
|
|
254,000 |
|
|
|
254,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
8
Loans held for investment summarized as of:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
|
Commercial real estate |
|
$ |
985,757 |
|
|
$ |
1,046,961 |
|
|
$ |
1,115,559 |
|
|
$ |
1,098,279 |
|
|
$ |
1,093,882 |
|
|
Construction, land development, land |
|
|
198,050 |
|
|
|
160,569 |
|
|
|
164,186 |
|
|
|
157,861 |
|
|
|
145,002 |
|
|
1-4 family residential properties |
|
|
169,703 |
|
|
|
179,425 |
|
|
|
186,405 |
|
|
|
186,070 |
|
|
|
194,067 |
|
|
Farmland |
|
|
133,579 |
|
|
|
154,975 |
|
|
|
161,447 |
|
|
|
144,594 |
|
|
|
156,299 |
|
|
Commercial |
|
|
1,412,822 |
|
|
|
1,342,683 |
|
|
|
1,369,505 |
|
|
|
1,257,330 |
|
|
|
1,117,640 |
|
|
Factored receivables |
|
|
661,100 |
|
|
|
619,986 |
|
|
|
599,651 |
|
|
|
583,131 |
|
|
|
570,663 |
|
|
Consumer |
|
|
20,326 |
|
|
|
21,925 |
|
|
|
24,967 |
|
|
|
26,048 |
|
|
|
27,941 |
|
|
Mortgage warehouse |
|
|
739,211 |
|
|
|
667,988 |
|
|
|
587,697 |
|
|
|
382,590 |
|
|
|
307,375 |
|
|
Total loans |
|
$ |
4,320,548 |
|
|
$ |
4,194,512 |
|
|
$ |
4,209,417 |
|
|
$ |
3,835,903 |
|
|
$ |
3,612,869 |
|
Our total loans held for investment portfolio consists of traditional community bank loans as well as commercial finance product lines focused on businesses that require specialized financial solutions and national lending product lines that further diversify our lending operations.
Commercial finance loans are further summarized below:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
|
Commercial - Equipment |
|
$ |
479,483 |
|
|
$ |
461,555 |
|
|
$ |
429,412 |
|
|
$ |
395,094 |
|
|
$ |
364,447 |
|
|
Commercial - Asset-based lending |
|
|
245,001 |
|
|
|
168,955 |
|
|
|
247,026 |
|
|
|
208,896 |
|
|
|
174,447 |
|
|
Factored receivables |
|
|
661,100 |
|
|
|
619,986 |
|
|
|
599,651 |
|
|
|
583,131 |
|
|
|
570,663 |
|
|
Commercial finance |
|
$ |
1,385,584 |
|
|
$ |
1,250,496 |
|
|
$ |
1,276,089 |
|
|
$ |
1,187,121 |
|
|
$ |
1,109,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial finance % of total loans |
|
|
32 |
% |
|
|
30 |
% |
|
|
30 |
% |
|
|
31 |
% |
|
|
31 |
% |
National lending loans are further summarized below:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
|
Mortgage warehouse |
|
$ |
739,211 |
|
|
$ |
667,988 |
|
|
$ |
587,697 |
|
|
$ |
382,590 |
|
|
$ |
307,375 |
|
|
Commercial - Liquid credit |
|
|
172,380 |
|
|
|
81,353 |
|
|
|
37,386 |
|
|
|
21,758 |
|
|
|
960 |
|
|
Commercial - Premium finance |
|
|
— |
|
|
|
101,015 |
|
|
|
101,562 |
|
|
|
72,898 |
|
|
|
77,389 |
|
|
National lending |
|
$ |
911,591 |
|
|
$ |
850,356 |
|
|
$ |
726,645 |
|
|
$ |
477,246 |
|
|
$ |
385,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National lending % of total loans |
|
|
21 |
% |
|
|
20 |
% |
|
|
17 |
% |
|
|
12 |
% |
|
|
11 |
% |
Additional information pertaining to our loan portfolio, summarized for the quarters ended:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
(Dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
|
Average community banking |
|
$ |
2,041,256 |
|
|
$ |
2,170,149 |
|
|
$ |
2,193,533 |
|
|
$ |
2,166,122 |
|
|
$ |
2,103,816 |
|
|
Average commercial finance |
|
|
1,292,749 |
|
|
|
1,260,000 |
|
|
|
1,208,823 |
|
|
|
1,168,110 |
|
|
|
1,123,978 |
|
|
Average national lending |
|
|
711,837 |
|
|
|
704,244 |
|
|
|
541,367 |
|
|
|
373,755 |
|
|
|
307,249 |
|
|
Average total loans |
|
$ |
4,045,842 |
|
|
$ |
4,134,393 |
|
|
$ |
3,943,723 |
|
|
$ |
3,707,987 |
|
|
$ |
3,535,043 |
|
|
Community banking yield |
|
|
5.67 |
% |
|
|
5.89 |
% |
|
|
5.79 |
% |
|
|
5.88 |
% |
|
|
5.91 |
% |
|
Commercial finance yield |
|
|
11.00 |
% |
|
|
11.64 |
% |
|
|
12.31 |
% |
|
|
12.52 |
% |
|
|
12.50 |
% |
|
National lending yield |
|
|
4.80 |
% |
|
|
4.96 |
% |
|
|
4.63 |
% |
|
|
5.62 |
% |
|
|
5.73 |
% |
|
Total loan yield |
|
|
7.22 |
% |
|
|
7.48 |
% |
|
|
7.63 |
% |
|
|
7.95 |
% |
|
|
7.99 |
% |
9
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, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
|
Factored receivable period end balance |
|
$ |
641,366,000 |
|
|
$ |
573,372,000 |
|
|
$ |
562,009,000 |
|
|
$ |
544,601,000 |
|
|
$ |
534,420,000 |
|
|
Yield on average receivable balance |
|
|
16.13 |
% |
|
|
17.20 |
% |
|
|
18.23 |
% |
|
|
18.73 |
% |
|
|
17.96 |
% |
|
Rolling twelve quarter annual charge-off rate |
|
|
0.42 |
% |
|
|
0.39 |
% |
|
|
0.36 |
% |
|
|
0.40 |
% |
|
|
0.39 |
% |
|
Factored receivables - transportation concentration |
|
|
80 |
% |
|
|
81 |
% |
|
|
83 |
% |
|
|
83 |
% |
|
|
81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, including fees |
|
$ |
23,497,000 |
|
|
$ |
24,813,000 |
|
|
$ |
24,869,000 |
|
|
$ |
24,762,000 |
|
|
$ |
23,803,000 |
|
|
Non-interest income |
|
|
1,296,000 |
|
|
|
1,154,000 |
|
|
|
1,291,000 |
|
|
|
1,205,000 |
|
|
|
1,077,000 |
|
|
Factored receivable total revenue |
|
|
24,793,000 |
|
|
|
25,967,000 |
|
|
|
26,160,000 |
|
|
|
25,967,000 |
|
|
|
24,880,000 |
|
|
Average net funds employed |
|
|
537,138,000 |
|
|
|
524,546,000 |
|
|
|
494,198,000 |
|
|
|
483,203,000 |
|
|
|
490,241,000 |
|
|
Yield on average net funds employed |
|
|
18.56 |
% |
|
|
19.64 |
% |
|
|
21.00 |
% |
|
|
21.55 |
% |
|
|
20.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable purchased |
|
$ |
1,450,618,000 |
|
|
$ |
1,489,538,000 |
|
|
$ |
1,450,905,000 |
|
|
$ |
1,408,982,000 |
|
|
$ |
1,325,140,000 |
|
|
Number of invoices purchased |
|
|
878,767 |
|
|
|
896,487 |
|
|
|
890,986 |
|
|
|
874,248 |
|
|
|
789,838 |
|
|
Average invoice size |
|
$ |
1,651 |
|
|
$ |
1,662 |
|
|
$ |
1,628 |
|
|
$ |
1,612 |
|
|
$ |
1,678 |
|
|
Average invoice size - transportation |
|
$ |
1,481 |
|
|
$ |
1,507 |
|
|
$ |
1,497 |
|
|
$ |
1,492 |
|
|
$ |
1,541 |
|
|
Average invoice size - non-transportation |
|
$ |
4,061 |
|
|
$ |
3,891 |
|
|
$ |
3,467 |
|
|
$ |
3,047 |
|
|
$ |
3,276 |
|
Deposits summarized as of:
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
|||||
|
(Dollars in thousands) |
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
|||||
|
Non-interest bearing demand |
|
$ |
846,412 |
|
|
$ |
809,696 |
|
|
$ |
754,233 |
|
|
$ |
684,223 |
|
|
$ |
667,597 |
|
|
|
Interest bearing demand |
|
|
583,445 |
|
|
|
580,323 |
|
|
|
587,123 |
|
|
|
587,164 |
|
|
|
602,088 |
|
|
|
Individual retirement accounts |
|
|
101,743 |
|
|
|
104,472 |
|
|
|
108,593 |
|
|
|
111,328 |
|
|
|
112,696 |
|
|
|
Money market |
|
|
412,376 |
|
|
|
497,105 |
|
|
|
424,162 |
|
|
|
440,289 |
|
|
|
372,109 |
|
|
|
Savings |
|
|
367,163 |
|
|
|
363,270 |
|
|
|
356,368 |
|
|
|
362,594 |
|
|
|
372,914 |
|
|
|
Certificates of deposit |
|
|
1,056,012 |
|
|
|
1,084,425 |
|
|
|
1,120,850 |
|
|
|
1,122,873 |
|
|
|
851,411 |
|
|
|
Brokered deposits |
|
|
314,864 |
|
|
|
350,615 |
|
|
|
346,504 |
|
|
|
350,507 |
|
|
|
335,625 |
|
|
|
Total deposits |
|
$ |
3,682,015 |
|
|
$ |
3,789,906 |
|
|
$ |
3,697,833 |
|
|
$ |
3,658,978 |
|
|
$ |
3,314,440 |
|
|
10
Net interest margin summarized for the three months ended:
|
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
||||||||||||||||||
|
|
|
Average |
|
|
|
|
|
|
Average |
|
|
Average |
|
|
|
|
|
|
Average |
|
||||
|
(Dollars in thousands) |
|
Balance |
|
|
Interest |
|
|
Rate |
|
|
Balance |
|
|
Interest |
|
|
Rate |
|
||||||
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning cash balances |
|
$ |
141,123 |
|
|
$ |
488 |
|
|
|
1.39 |
% |
|
$ |
153,160 |
|
|
$ |
659 |
|
|
|
1.71 |
% |
|
Taxable securities |
|
|
228,996 |
|
|
|
1,955 |
|
|
|
3.43 |
% |
|
|
254,255 |
|
|
|
2,157 |
|
|
|
3.37 |
% |
|
Tax-exempt securities |
|
|
25,925 |
|
|
|
152 |
|
|
|
2.36 |
% |
|
|
37,680 |
|
|
|
222 |
|
|
|
2.34 |
% |
|
FHLB and other restricted stock |
|
|
21,098 |
|
|
|
204 |
|
|
|
3.89 |
% |
|
|
25,599 |
|
|
|
165 |
|
|
|
2.56 |
% |
|
Loans |
|
|
4,045,842 |
|
|
|
72,615 |
|
|
|
7.22 |
% |
|
|
4,134,393 |
|
|
|
77,968 |
|
|
|
7.48 |
% |
|
Total interest earning assets |
|
$ |
4,462,984 |
|
|
$ |
75,414 |
|
|
|
6.80 |
% |
|
$ |
4,605,087 |
|
|
$ |
81,171 |
|
|
|
6.99 |
% |
|
Non-interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
443,563 |
|
|
|
|
|
|
|
|
|
|
|
445,773 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
4,906,547 |
|
|
|
|
|
|
|
|
|
|
$ |
5,050,860 |
|
|
|
|
|
|
|
|
|
|
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand |
|
$ |
586,671 |
|
|
$ |
344 |
|
|
|
0.24 |
% |
|
$ |
588,590 |
|
|
$ |
373 |
|
|
|
0.25 |
% |
|
Individual retirement accounts |
|
|
103,351 |
|
|
|
402 |
|
|
|
1.56 |
% |
|
|
106,645 |
|
|
|
435 |
|
|
|
1.62 |
% |
|
Money market |
|
|
441,815 |
|
|
|
1,031 |
|
|
|
0.94 |
% |
|
|
490,438 |
|
|
|
1,542 |
|
|
|
1.25 |
% |
|
Savings |
|
|
363,888 |
|
|
|
124 |
|
|
|
0.14 |
% |
|
|
359,024 |
|
|
|
119 |
|
|
|
0.13 |
% |
|
Certificates of deposit |
|
|
1,068,023 |
|
|
|
6,006 |
|
|
|
2.26 |
% |
|
|
1,108,647 |
|
|
|
6,491 |
|
|
|
2.32 |
% |
|
Brokered deposits |
|
|
344,847 |
|
|
|
1,770 |
|
|
|
2.06 |
% |
|
|
350,737 |
|
|
|
2,001 |
|
|
|
2.26 |
% |
|
Total interest bearing deposits |
|
|
2,908,595 |
|
|
|
9,677 |
|
|
|
1.34 |
% |
|
|
3,004,081 |
|
|
|
10,961 |
|
|
|
1.45 |
% |
|
Subordinated notes |
|
|
87,323 |
|
|
|
1,347 |
|
|
|
6.20 |
% |
|
|
63,706 |
|
|
|
1,035 |
|
|
|
6.45 |
% |
|
Junior subordinated debentures |
|
|
39,609 |
|
|
|
646 |
|
|
|
6.56 |
% |
|
|
39,491 |
|
|
|
687 |
|
|
|
6.90 |
% |
|
Other borrowings |
|
|
361,996 |
|
|
|
1,244 |
|
|
|
1.38 |
% |
|
|
438,447 |
|
|
|
2,080 |
|
|
|
1.88 |
% |
|
Total interest bearing liabilities |
|
$ |
3,397,523 |
|
|
$ |
12,914 |
|
|
|
1.53 |
% |
|
$ |
3,545,725 |
|
|
$ |
14,763 |
|
|
|
1.65 |
% |
|
Non-interest bearing liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand deposits |
|
|
810,654 |
|
|
|
|
|
|
|
|
|
|
|
791,379 |
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
71,001 |
|
|
|
|
|
|
|
|
|
|
|
66,210 |
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
627,369 |
|
|
|
|
|
|
|
|
|
|
|
647,546 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
4,906,547 |
|
|
|
|
|
|
|
|
|
|
$ |
5,050,860 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
62,500 |
|
|
|
|
|
|
|
|
|
|
$ |
66,408 |
|
|
|
|
|
|
Interest spread |
|
|
|
|
|
|
|
|
|
|
5.27 |
% |
|
|
|
|
|
|
|
|
|
|
5.34 |
% |
|
Net interest margin |
|
|
|
|
|
|
|
|
|
|
5.63 |
% |
|
|
|
|
|
|
|
|
|
|
5.72 |
% |
Loan balance totals include respective nonaccrual assets.
Net interest spread is the yield on average interest earning assets less the rate on interest bearing liabilities.
Net interest margin is the ratio of net interest income to average interest earning assets.
Average rates have been annualized.
11
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) |
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
|
Average total stockholders' equity |
|
$ |
627,369 |
|
|
$ |
647,546 |
|
|
$ |
646,041 |
|
|
$ |
652,347 |
|
|
$ |
644,960 |
|
|
Average goodwill and other intangibles |
|
|
(189,359 |
) |
|
|
(191,551 |
) |
|
|
(193,765 |
) |
|
|
(196,002 |
) |
|
|
(198,389 |
) |
|
Average tangible common stockholders' equity |
|
$ |
438,010 |
|
|
$ |
455,995 |
|
|
$ |
452,276 |
|
|
$ |
456,346 |
|
|
$ |
446,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(4,450 |
) |
|
$ |
16,709 |
|
|
$ |
14,317 |
|
|
$ |
12,730 |
|
|
$ |
14,788 |
|
|
Average tangible common equity |
|
|
438,010 |
|
|
|
455,995 |
|
|
|
452,276 |
|
|
|
456,346 |
|
|
|
446,571 |
|
|
Return on average tangible common equity |
|
|
(4.09 |
%) |
|
|
14.54 |
% |
|
|
12.56 |
% |
|
|
11.19 |
% |
|
|
13.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
589,347 |
|
|
$ |
636,590 |
|
|
$ |
633,693 |
|
|
$ |
643,362 |
|
|
$ |
646,216 |
|
|
Goodwill and other intangibles |
|
|
(188,208 |
) |
|
|
(190,286 |
) |
|
|
(192,440 |
) |
|
|
(194,668 |
) |
|
|
(197,015 |
) |
|
Tangible common stockholders' equity |
|
$ |
401,139 |
|
|
$ |
446,304 |
|
|
$ |
441,253 |
|
|
$ |
448,694 |
|
|
$ |
449,201 |
|
|
Common shares outstanding |
|
|
24,101,120 |
|
|
|
24,964,961 |
|
|
|
25,357,985 |
|
|
|
26,198,308 |
|
|
|
26,709,411 |
|
|
Tangible book value per share |
|
$ |
16.64 |
|
|
$ |
17.88 |
|
|
$ |
17.40 |
|
|
$ |
17.13 |
|
|
$ |
16.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at end of period |
|
$ |
5,353,729 |
|
|
$ |
5,060,297 |
|
|
$ |
5,039,697 |
|
|
$ |
4,783,189 |
|
|
$ |
4,529,783 |
|
|
Goodwill and other intangibles |
|
|
(188,208 |
) |
|
|
(190,286 |
) |
|
|
(192,440 |
) |
|
|
(194,668 |
) |
|
|
(197,015 |
) |
|
Tangible assets at period end |
|
$ |
5,165,521 |
|
|
$ |
4,870,011 |
|
|
$ |
4,847,257 |
|
|
$ |
4,588,521 |
|
|
$ |
4,332,768 |
|
|
Tangible common stockholders' equity ratio |
|
|
7.77 |
% |
|
|
9.16 |
% |
|
|
9.10 |
% |
|
|
9.78 |
% |
|
|
10.37 |
% |
|
1) |
Triumph uses certain non-GAAP financial measures to provide meaningful supplemental information regarding Triumph's operational performance and to enhance investors' overall understanding of such financial performance. The non-GAAP measures used by Triumph include the following: |
|
|
|
• |
“Adjusted diluted earnings per common share” is defined as adjusted net income available to common stockholders divided by adjusted weighted average diluted common shares outstanding. Excluded from net income available to common stockholders are material gains and expenses related to merger and acquisition-related activities, including divestitures, net of tax. In our judgment, the adjustments made to net income available to common stockholders allow management and investors to better assess our performance in relation to our core net income by removing the volatility associated with certain acquisition-related items and other discrete items that are unrelated to our core business. Weighted average diluted common shares outstanding are adjusted as a result of changes in their dilutive properties given the gain and expense adjustments described herein. |
|
|
|
• |
"Tangible common stockholders' equity" is defined as common stockholders' equity less goodwill and other intangible assets. |
|
|
|
• |
"Total tangible assets" is defined as total assets less goodwill and other intangible assets. |
|
|
|
• |
"Tangible book value per share" is defined as tangible common stockholders' equity divided by total common shares outstanding. This measure is important to investors interested in changes from period-to-period in book value per share exclusive of changes in intangible assets. |
|
|
|
• |
"Tangible common stockholders' equity ratio" is defined as the ratio of tangible common stockholders' equity divided by total tangible assets. We believe that this measure is important to many investors in the marketplace who are interested in relative changes from period-to period in common equity and total assets, each exclusive of changes in intangible assets. |
|
|
|
• |
"Return on Average Tangible Common Equity" is defined as net income available to common stockholders divided by average tangible common stockholders' equity. |
|
|
|
• |
"Adjusted efficiency ratio" is defined as non-interest expenses divided by our operating revenue, which is equal to net interest income plus non-interest income. Also excluded are material gains and expenses related to merger and acquisition-related activities, including divestitures. In our judgment, the adjustments made to operating revenue and non-interest expense allow management and investors to better assess our performance in relation to our core operating revenue by removing the volatility associated with certain acquisition-related items and other discrete items that are unrelated to our core business. |
|
|
|
• |
"Adjusted net non-interest expense to average total assets" is defined as non-interest expenses net of non-interest income divided by total average assets. Excluded are material gains and expenses related to merger and acquisition-related activities, including divestitures. This metric is used by our management to better assess our operating efficiency. |
|
12
|
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) |
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|||||
|
Loan discount accretion |
|
$ |
2,134 |
|
|
$ |
1,555 |
|
|
$ |
1,159 |
|
|
$ |
1,297 |
|
|
$ |
1,557 |
|
|
3) |
Asset quality ratios exclude loans held for sale, except for non-performing assets to total assets. |
|
|
4) |
Past due ratio has been revised to exclude nonaccrual loans with contractual payments less than 30 days past due. |
|
|
5) |
Beginning January 1, 2020, the allowance for credit losses was calculated in accordance with Accounting Standards Codification Topic 326, “Financial Instruments – Credit Losses” (“ASC 326”). |
|
|
6) |
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
13
Q1 2020 Earnings Release April 20, 2020 Exhibit 99.2
DISCLAIMER Forward-Looking Statements This presentation contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; the impact of COVID-19 on our business, including the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on the United States economy (including, without limitation, the CARES Act), and the resulting effect of all of such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; changes in management personnel; interest rate risk; concentration of our products and services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; risks related to the integration of acquired businesses and any future acquisitions; our ability to successfully identify and address the risks associated with our possible future acquisitions, and the risks that our prior and possible future acquisitions make it more difficult for investors to evaluate our business, financial condition and results of operations, and impairs our ability to accurately forecast our future performance; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of FDIC, insurance and other coverages; failure to receive regulatory approval for future acquisitions; and increases in our capital requirements. While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 11, 2020. 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, 2020. PAGE
COMPANY OVERVIEW PAGE Triumph Bancorp, Inc. (NASDAQ: TBK) (“Triumph”) is a financial holding company headquartered in Dallas, Texas. Triumph offers a diversified line of community banking, national lending, and commercial finance products through its bank subsidiary, TBK Bank, SSB. www.triumphbancorp.com TOTAL ASSETS $5.4 billion MARKET CAP $626.6 million TOTAL LOANS $4.3 billion TOTAL DEPOSITS $3.7 billion Data is as of and for the quarter ended March 31, 2020
PLATFORM OVERVIEW – BRANCH NETWORK 61 TOTAL BRANCHES 37 in Colorado 15 in Illinois 3 in Iowa 3 in New Mexico 2 in Kansas 1 in Texas BRANCH LOCATIONS as of March 31, 2020 PAGE
PLATFORM OVERVIEW – LENDING 26% Texas GEOGRAPHIC LENDING CONCENTRATIONS1 as of March 31, 2020 19% Colorado 1% Kansas 6% Iowa 13% Illinois 2% New Mexico 1 States with a physical branch presence. Excludes factored receivables PAGE
COVID-19 RESPONSE We are supporting our customers and communities affected by the COVID-19 pandemic. Loan payment deferral program and participation in the Paycheck Protection Program (PPP). As of April 15th, we have executed 404 deferrals on outstanding loan balances of $233 million. We have 397 additional deferral requests on outstanding loan balances of $276 million. As of April 17th, we have closed or approved with the SBA, 732 PPP loans representing $158 million in funding. We are waiving a variety of deposit fees for a period of time and supporting the prompt processing of government stimulus payments including such payments for non-bank customers. We continue to invest in, serve, and care for our communities. Local teams have made donations and purchased meals for those in need, including first responders. We invoked our Pandemic Preparedness Plan to protect and support our team members and business. Most branches remain open with drive-through access. Front line customer service team receiving premium pay. Over 90% of non-retail staff team members are working from home with minimal impact to our operations or service levels. PAGE
COVID-19 EXPOSURE Industry Total Exposure1 (millions) % of Gross Loans Retail $195.5 4.52% Energy $133.1 3.08% Hospitality $128.9 2.98% Restaurants $55.1 1.27% Health Care/Senior Care $41.6 0.96% Energy Total Exposure1 (millions) Factoring $51.6 Equipment finance $49.0 Asset-based lending $11.5 Other $20.9 No exposure to E&P or reserve based lending Retail Total Exposure1 (millions) Retail real estate $67.9 Vehicle lending (DFP) $42.9 Grocery and sundries2 $39.9 Liquid Credit $13.9 Factoring $11.3 Other $19.6 March 31, 2020 exposure to industries most impacted by COVID-19 1 On balance sheet loans and unfunded commitments to lend. 2 Includes exposure to grocery, pharmacy, gas stations, convenience stores and pet stores. PAGE
Q1 2020 RESULTS AND RECENT DEVELOPMENTS PAGE Diluted loss per share of $0.18 for the quarter Total loans held for investment increased $126.0 million The commercial finance portfolio increased $135.1 million, the national lending portfolio increased $61.2 million, and the community banking portfolio decreased $70.3 million Excluding premium finance loans, total loans held for investment grew $227.1 million and the national lending portfolio increased $162.3 million Total deposits decreased $107.9 million, or 2.9%; however, noninterest bearing demand deposits grew $36.7 million, or 4.5% Repurchased 871,319 shares of common stock into treasury stock under the stock repurchase program at an average price of $40.81, for a total of $35.6 million, effectively completing the stock repurchase program authorized on October 16, 2019. Adopted new Accounting Standard Update 2016-13, “Financial Instruments – Credit Loses (Topic 326): Measurement of Credit Losses on Financial Instruments” $(4.5) million Net loss to common stockholders LOAN GROWTH 3.0% Loans Held for Investment NIM 5.63% Net Interest Margin1 ROATCE (4.09%) Return on Average Tangible Common Equity2 TCE/TA 7.77% Tangible Common Equity / Tangible Assets2 1 Includes discount accretion on purchased loans of $2,134 in Q1 2020 2 Reconciliations of non-GAAP financial measures can be found at the end of the presentation
LONG TERM PERFORMANCE GOALS VS ACTUAL Q1 NET INTEREST INCOME TO AVERAGE ASSETS Q1: 5.12% Goal 6.00 - 6.50% NET OVERHEAD RATIO Q1: 4.12% Goal 3.00 - 3.50% Annualized performance metrics presented are for the three months ended March 31, 2020 Reconciliations of these financial measures can be found at the end of the presentation PRE-PROVISION NET REVENUE Q1: 1.00% Goal > 3.00% CREDIT COSTS Q1: 1.42% Goal < 0.30% TAXES Q1: (0.06%) Goal ~ 0.57% RETURN ON AVERAGE ASSETS Q1: (0.36%) Goal > 2.00% AVERAGE TANGIBLE COMMON EQUITY TO AVERAGE ASSETS Q1: 8.93% Goal ~ 8.75% RETURN ON AVERAGE TANGIBLE COMMON EQUITY (“ROATCE”) Goal > 20.00% Q1: (4.09%) PAGE
LOAN PORTFOLIO TOTAL LOANS COMMUNITY BANKING Focused on core deposit generation and business lending in the communities we serve COMMERCIAL FINANCE Factoring, asset based lending, and equipment finance produce top tier return on assets NATIONAL LENDING Mortgage warehouse to provide portfolio diversification, premium finance to complement our commercial finance products, and liquid credit to opportunistically scale our loan portfolio $4,325.1 Total loans include $4.2 million of 1-4 residential mortgage loans held for sale and $0.3 million of liquid credit loans held for sale Chart data labels – dollars in millions PAGE $2,027.6 47% $1,385.6 32% $911.9 21% $4,325.1
LOAN PORTFOLIO DETAIL COMMUNITY BANKING 47% of Total Portfolio NATIONAL LENDING 21% of Total Portfolio COMMERCIAL FINANCE 32% of Total Portfolio $2,027.6 $911.9 $1,385.6 Chart data labels – dollars in millions (1) Includes $4.2 million of mortgage loans held for sale (2) Includes $0.3 million of liquid credit loans held for sale PAGE $2,027.6 47% $1,385.6 32% $911.9 21% Commercial Real Estate $985.8 Construction, Land & Development $198.1 1-4 Family Residential(1) $173.9 Farmland $133.6 COMMERCIAL Agriculture $111.0 General $404.9 CONSUMER $20.3 Triumph Business Capital $641.4 Other Factored Receivables $19.7 EQUIPMENT FINANCE $479.5 ASSET BASED LENDING $245.0 MORTGAGE WAREHOUSE $739.2 LIQUID CREDIT(2) $172.7
TRIUMPH BUSINESS CAPITAL FACTORING Yield of 16.13% in the current quarter Average annual charge-off rate of 0.42% over the past 3 years * On June 2, 2018, we acquired $131.0 million of transportation factoring assets via the acquisition of Interstate Capital Corporation and certain of its affiliates [Pie Chart] Transportation Non-Transportation 80% 20% [Bar/Line Chart] Total Purchases Number of Invoices Purchased [Bar Chart] Average Invoice Size PAGE
TRANSPORTATION FINANCE Gross transportation revenue consists of factoring revenue from transportation clients, interest and fees from commercial loans to borrowers in transportation industries, transportation related insurance commissions, and revenue from TriumphPay. Total gross revenue consists of total interest income and noninterest income. Transportation assets include transportation related factored receivables and commercial loans to borrowers in transportation industries. By proudly banking the trucking industry, we intend to be a dominant player in a large industry that is a profitable sector for a well-positioned bank. Products we offer to transportation clients include: Checking Treasury management Factoring Equipment finance TriumphPay Commercial lending Fuel cards Premium finance Insurance brokerage PAGE
CARRIER PAYMENT PLATFORM CLIENTS ON PLATFORM [Bar/Line Chart] Invoice and Payment Trends Number of Invoices Payment Amounts Processed Total payment amounts processed (annualized) Total invoices processed (annualized) PAGE
LOAN PORTFOLIO PAGE
DEPOSIT MIX PAGE March 31, 2020 23% 16% 3% 11% 10% 29% 9%
FINANCIAL HIGHLIGHTS 1) 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. 2) Includes discount accretion on purchased loans of $1,557 in 1Q19, $1,297 in 2Q19, $1,159 in 3Q19, $1,555 in 4Q19, and $2,134 in 1Q20 (dollars in thousands). 3) Asset quality ratios exclude loans held for sale. 4) Current quarter ratios are preliminary As of and For the Three Months Ended Key Metrics March 31, December 31, September 30, June 30, March 31, 2020 2019 2019 2019 2019 Performance ratios - annualized Return on average assets (0.36%) 1.31% 1.17% 1.09% 1.33% Return on average tangible common equity (ROATCE) (1) (4.09%) 14.54% 12.56% 11.19% 13.43% Yield on loans(2) 7.22% 7.48% 7.63% 7.95% 7.99% Cost of total deposits 1.05% 1.15% 1.19% 1.14% 0.99% Net interest margin(2) 5.63% 5.72% 5.85% 5.99% 6.15% Net non-interest expense to average assets 4.12% 3.46% 3.64% 3.68% 3.70% Efficiency ratio 82.44% 70.15% 71.93% 71.37% 70.54% Asset Quality(3) Non-performing assets to total assets 1.09% 0.87% 0.91% 0.86% 0.84% ACL to total loans 1.04% 0.69% 0.76% 0.77% 0.76% Net charge-offs to average loans 0.04% 0.08% 0.01% 0.05% 0.03% Capital(4) Tier 1 capital to average assets 9.62% 10.03% 10.37% 10.84% 11.32% Tier 1 capital to risk-weighted assets 9.03% 10.29% 10.08% 11.08% 11.76% Common equity tier 1 capital to risk-weighted assets 8.24% 9.46% 9.26% 10.19% 10.81% Total capital to risk-weighted assets 11.63% 12.76% 11.79% 12.88% 13.62% Per Share Amounts Book value per share $24.45 $25.50 $24.99 $24.56 $24.19 Tangible book value per share (1) $16.64 $17.88 $17.40 $17.13 $16.82 Basic earnings (loss) per common share $(0.18) $0.67 $0.56 $0.48 $0.55 Diluted earnings (loss) per common share $(0.18) $0.66 $0.56 $0.48 $0.55 PAGE
NON-GAAP FINANCIAL RECONCILIATION 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) 2020 2019 2019 2019 2019 Average total stockholders' equity $627,369 $647,546 $646,041 $652,347 $644,960 Average goodwill and other intangibles (189,359) (191,551) (193,765) (196,002) (198,389) Average tangible common stockholders' equity $438,010 $455,995 $452,276 $456,346 $446,571 Net income (loss) $(4,450) $16,709 $14,317 $12,730 $14,788 Average tangible common equity 438,010 455,995 452,276 456,346 446,571 Return on average tangible common equity (4.09%) 14.54% 12.56% 11.19% 13.43% Total stockholders' equity $589,347 $636,590 $633,693 $643,362 $646,216 Goodwill and other intangibles (188,208) (190,286) (192,440) (194,668) (197,015) Tangible common stockholders' equity $401,139 $446,304 $441,253 $448,694 $449,201 Common shares outstanding at end of period 24,101,120 24,964,961 25,357,985 26,198,308 26,709,411 Tangible book value per share $16.64 $17.88 $17.40 $17.13 $16.82 Total assets at end of period $5,353,729 $5,060,297 $5,039,697 $4,783,189 $4,529,783 Goodwill and other intangibles (188,208) (190,286) (192,440) (194,668) (197,015) Tangible assets at period end $5,165,521 $4,870,011 $4,847,257 $4,588,521 $4,332,768 Tangible common stockholders' equity ratio 7.77% 9.16% 9.10% 9.78% 10.37% PAGE
NON-GAAP FINANCIAL RECONCILIATION Ratios may not recalculate due to rounding Metrics and non-GAAP financial reconciliation (cont'd) For the Three Months Ended For the Three Months Ended March 31, 2020 March 31, 2020 (Dollars in thousands, except per share amounts) GAAP (Dollars in thousands, except per share amounts) GAAP Net interest income to average total assets: Return on average total assets: Net interest income $62,500 Net interest income to average assets 5.12% Average total assets 4,906,547 Net noninterest expense to average assets ratio (4.12%) Net interest income to average assets 5.12% Pre-provision net revenue to average assets 1.00% Credit costs to average assets (1.42%) Net noninterest expense to average total assets: Taxes to average assets 0.06% Total noninterest expense $57,690 Return on average assets (0.36%) Total noninterest income 7,477 Net noninterest expense $50,213 Average tangible common equity to average assets: Average total assets 4,906,547 Average tangible equity $438,010 Net noninterest expense to average assets ratio 4.12% Average assets 4,906,547 Average tangible equity to average assets 8.93% Pre-provision net revenue to average total assets: Net interest income $62,500 Return on average tangible common equity: Net noninterest expense 50,213 Return on average assets (0.36%) Pre-provision net revenue $12,287 Average tangible equity to average assets 8.93% Average total assets 4,906,547 Return on average tangible common equity: (4.09%) Pre-provision net revenue to average assets 1.00% Credit costs to average total assets: Credit loss expense $17,361 Average total assets 4,906,547 Credit costs to average assets 1.42% Taxes to average total assets: Income tax expense (benefit) $(624) Average total assets 4,906,547 Taxes to average assets (0.06%) PAGE