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Triumph Bancorp Reports Second Quarter Net Income to Common Stockholders of $4.5 Million

DALLAS, July 27, 2015 (GLOBE NEWSWIRE) -- Triumph Bancorp, Inc. (NASDAQ:TBK) today announced earnings and operating results for the second quarter of 2015.

"Our second quarter 2015 results were strong with a significant rebound from the slower growth experienced due to seasonality in the first quarter," said Aaron P. Graft, Chief Executive Officer, Triumph Bancorp, Inc. "Each of the products in our commercial finance loan portfolio experienced net growth and our loan yields and net interest margin continue to rank near the top of our industry."

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 document.

Second Quarter Highlights

  • For the second quarter of 2015, net income was $4.7 million and net income available to common stockholders was $4.5 million, compared to net income of $14.0 million and net income available to common stockholders of $13.9 million for the quarter ended March 31, 2015.
  • Fully diluted earnings per share were $0.25 for the quarter ended June 30, 2015, compared to $0.76 for the quarter ended March 31, 2015. Excluding the impact of the net contribution of the Doral Money, Inc. ("DMI") acquisition completed during the first quarter of 2015, fully diluted earnings per share were $0.14 for the quarter ended March 31, 2015.
  • For the quarter ended June 30, 2015, our annualized return on average common equity and return on average assets were 7.27% and 1.23%, respectively. Our annualized return on average common equity and return on average assets were 4.29% and 0.69%, respectively, for the quarter ended March 31, 2015, excluding the results of the DMI transaction.
  • Total loans held for investment increased $141.2 million, or 14.0%, during the second quarter of 2015.
  • Net interest margin ("NIM") increased 109 bps to 7.20% for the quarter ended June 30, 2015 from 6.11% for the quarter ended March 31, 2015.

Balance Sheet

Total loans held for investment were $1.153 billion at June 30, 2015, an increase of $141.2 million or 14.0% during the second quarter. This increase was primarily due to continued organic growth in our commercial finance loan portfolio, which consists of factored receivables, asset based and equipment loans originated under our Triumph Commercial Finance brand, and healthcare asset based loans originated under our Triumph Healthcare Finance brand. Our commercial finance loan portfolio totaled $467.7 million as of June 30, 2015, an increase of $81.8 million or 21.2% in the second quarter of 2015.

Total deposits were $1.189 billion at June 30, 2015, an increase of $15.6 million or 1.3% for the second quarter of 2015. Noninterest-bearing deposits accounted for 13.8% of total deposits and non-time deposits accounted for 49.0% of total deposits. The average cost of our interest-bearing deposits was 0.65% for the quarter ended June 30, 2015 compared to 0.64% for the quarter ended March 31, 2015, on an annualized basis.

Net Interest Income

We earned net interest income for the quarter ended June 30, 2015 of $24.6 million compared to $19.7 million for the quarter ended March 31, 2015. Yields on loans for the quarter ended June 30, 2015 were up 99 bps to 9.49% (8.96% adjusted to exclude loan discount accretion) compared to 8.50% (8.04% adjusted to exclude loan discount accretion) for the quarter ended March 31, 2015. NIM increased 109 bps to 7.20% for the quarter ended June 30, 2015 from 6.11% for the quarter ended March 31, 2015. NIM adjusted to exclude loan discount accretion was 6.78% for the quarter ended June 30, 2015 compared to 5.76% for the quarter ended March 31, 2015. NIM increases were impacted by $2.3 million of delinquent interest and fees received in conjunction with the resolution and restructuring of two nonperforming loans.

Asset Quality

Our provision for loan losses was $2.5 million for the quarter ended June 30, 2015 compared to $0.6 million for the quarter ended March 31, 2015. We experienced net charge-offs of $0.4 million for the quarter ended June 30, 2015 compared to net charge-offs of $0.2 million for the quarter ended March 31, 2015. From March 31, 2015 to June 30, 2015, our allowance for loan and lease losses ("ALLL") increased from $9.3 million or 0.92% of total loans to $11.5 million or 0.99% of total loans. Nonperforming Assets ("NPAs") improved 36 bps from March 31, 2015 to June 30, 2015 to 1.26% of total assets.

Noninterest Income and Expense

We earned noninterest income for the quarter ended June 30, 2015 of $4.8 million compared to $16.7 million (or $3.9 million excluding the DMI transaction) for the quarter ended March 31, 2015. Noninterest income for the quarter ended June 30, 2015 included $1.3 million of asset management fees earned by our asset management subsidiary, Triumph Capital Advisors.

For the quarter ended June 30, 2015, noninterest expense totaled $19.6 million, compared to $20.8 million (or $18.8 million excluding the DMI transaction), for the quarter ended March 31, 2015.

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 9:00 a.m. Central Time on Monday, July 27, 2015. Dan Karas, Chief Lending Officer of Triumph Savings Bank and Gibran Mahmud, Chief Investment Officer at Triumph Capital Advisors will also be available for questions.

To participate in the live conference call, please dial 1 (855) 779-1042 (U.S. and Canada) and enter Conference ID # 74236810. A simultaneous audio-only webcast may be accessed via our website at www.triumphbancorp.com through the Investor Relations, Webcasts and Presentations links, or through a direct link here at http://edge.media-server.com/m/p/kc4pyim8/lan/en. An archive of this conference call will subsequently be available at this same location on our website.

About Triumph

Headquartered in Dallas, Texas, Triumph Bancorp, Inc. (NASDAQ:TBK) is a financial holding company with a diversified line of community banking, commercial finance and asset management activities. 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: our limited operating history as an integrated company; business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market area; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; risks related to the integration of acquired businesses 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; risks related to our asset management business; 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 obligations associated with being a public company; 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; increases in our capital requirements; and risk retention requirements under the Dodd-Frank Act.

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 March 6, 2015.

Non-GAAP Financial Measures

This press release includes certain Non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided at the end of this press release.

The following table sets forth key metrics used by Triumph to monitor its operations. Footnotes in this table can be found in our definitions of non-GAAP financial measures at the end of this document.

As of and for the Three Months Ended
June 30, March 31, December 31, September 30, June 30,
2015 2015 2014 2014 2014
Financial Highlights (Dollars in thousands):
Total assets $ 1,529,259 $ 1,472,743 $ 1,447,898 $ 1,347,798 $ 1,407,072
Loans held for investment $ 1,152,679 $ 1,011,446 $ 1,005,878 $ 977,139 $ 939,517
Deposits $ 1,189,259 $ 1,173,679 $ 1,165,229 $ 1,105,624 $ 1,108,254
Net income available to common stockholders $ 4,457 $ 13,852 $ 2,021 $ 9,495 $ 2,285
Performance Ratios - Annualized:
Return on average assets 1.23% 3.93% 0.78% 3.01% 0.88%
Return on average common equity (1) 7.27% 23.95% 4.30% 26.84% 7.05%
Return on average tangible common equity (1) 8.28% 27.38% 5.11% 34.26% 8.98%
Return on average total equity 7.30% 23.31% 5.02% 23.16% 7.18%
Yield on loans 9.49% 8.50% 8.98% 8.66% 8.83%
Adjusted yield on loans (1) 8.96% 8.04% 8.29% 8.03% 7.75%
Cost of interest bearing deposits 0.65% 0.64% 0.61% 0.56% 0.50%
Cost of total deposits 0.56% 0.55% 0.52% 0.48% 0.42%
Cost of total funds 0.63% 0.63% 0.65% 0.59% 0.53%
Net interest margin (1) 7.20% 6.11% 6.58% 6.69% 6.58%
Adjusted net interest margin (1) 6.78% 5.76% 6.05% 6.19% 5.74%
Net noninterest expense to average assets (1) 3.95% 4.18% 4.44% 4.48% 3.99%
Efficiency ratio (1) 66.75% 79.70% 78.58% 78.29% 71.78%
Asset Quality:(2)
Past due to total loans 2.33% 2.91% 2.57% 2.61% 2.82%
Nonperforming loans to total loans 1.12% 1.66% 1.66% 1.80% 1.54%
Nonperforming assets to total assets 1.26% 1.62% 1.73% 2.05% 1.82%
ALLL to nonperforming loans 88.51% 55.28% 53.02% 41.68% 43.16%
ALLL to total loans 0.99% 0.92% 0.88% 0.75% 0.67%
Net charge-offs to average loans 0.03% 0.02% 0.03% 0.03% 0.01%
Capital:(3)
Tier 1 capital to average assets 17.01% 17.35% 15.92% 12.20% 11.00%
Tier 1 capital to risk-weighted assets 19.16% 20.72% 19.56% 14.59% 12.66%
Common equity tier 1 capital to risk-weighted assets 16.98% 18.33% N/A N/A N/A
Total capital to risk-weighted assets 20.04% 21.51% 20.35% 15.27% 13.22%
Total equity to total assets 16.84% 17.16% 16.40% 13.05% 11.79%
Total stockholders' equity to total assets 16.84% 17.16% 16.40% 11.12% 9.95%
Tangible common stockholders' equity to tangible assets 14.51% 14.75% 14.00% 8.38% 7.21%
Per Share Amounts:
Book value per share $ 13.73 $ 13.52 $ 12.68 $ 14.18 $ 13.23
Tangible book value per share (1) $ 12.06 $ 11.84 $ 11.06 $ 11.17 $ 10.08
Basic earnings per common share $ 0.25 $ 0.78 $ 0.14 $ 0.96 $ 0.23
Diluted earnings per common share $ 0.25 $ 0.76 $ 0.14 $ 0.91 $ 0.23
Shares outstanding end of period 18,041,072 17,963,783 17,963,783 9,886,778 9,845,819

Unaudited consolidated balance sheet as of:

June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2015 2015 2014 2014 2014
ASSETS
Total cash and cash equivalents $ 99,714 $ 178,442 $ 160,888 $ 75,625 $ 85,716
Securities - available for sale 158,693 161,360 162,024 165,489 168,694
Securities - held to maturity 746 746 745 745 744
Loans held for sale 4,096 3,401 3,288 7,295 4,088
Loans held for investment 1,152,679 1,011,446 1,005,878 977,139 939,517
Allowance for loan and lease losses (11,462) (9,286) (8,843) (7,320) (6,253)
Loans, net 1,141,217 1,002,160 997,035 969,819 933,264
Branch assets held for sale 80,331
FHLB and FRB stock 5,707 4,466 4,903 5,826 7,976
Premises and equipment, net 21,677 21,716 21,933 21,744 20,708
Other real estate owned ("OREO"), net 6,322 6,991 8,423 10,019 11,103
Goodwill and intangible assets, net 30,174 30,211 29,057 29,783 31,043
Bank-owned life insurance 29,295 29,193 29,083 28,955 28,829
Deferred tax asset, net 15,582 14,983 15,956 16,523 20,178
Other assets 16,036 19,074 14,563 15,975 14,398
Total assets $ 1,529,259 $ 1,472,743 $ 1,447,898 $ 1,347,798 $ 1,407,072
LIABILITIES
Noninterest bearing deposits $ 164,560 $ 167,538 $ 179,848 $ 154,750 $ 176,245
Interest bearing deposits 1,024,699 1,006,141 985,381 950,874 932,009
Total deposits 1,189,259 1,173,679 1,165,229 1,105,624 1,108,254
Customer repurchase agreements 13,011 8,666 9,282 15,644 15,313
Federal Home Loan Bank advances 19,000 3,000 70,000
Senior secured note 11,630 11,944
Junior subordinated debentures 24,553 24,487 24,423 24,359 24,296
Other liabilities 25,957 13,234 8,455 14,713 11,341
Total liabilities 1,271,780 1,220,066 1,210,389 1,171,970 1,241,148
EQUITY
Preferred stock series A 4,550 4,550 4,550 4,550 4,550
Preferred stock series B 5,196 5,196 5,196 5,196 5,196
Common stock 181 180 180 99 98
Additional paid-in-capital 192,605 191,745 191,049 105,304 104,827
Treasury stock, at cost (170) (161) (161) (68) (4)
Retained earnings 54,053 49,596 35,744 34,014 24,519
Accumulated other comprehensive income 1,064 1,571 951 836 841
Total stockholders' equity 257,479 252,677 237,509 149,931 140,027
Noncontrolling interests 25,897 25,897
Total equity 257,479 252,677 237,509 175,828 165,924
Total liabilities and equity $ 1,529,259 $ 1,472,743 $ 1,447,898 $ 1,347,798 $ 1,407,072

Unaudited consolidated statement of income for the three months ended:

June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2015 2015 2014 2014 2014
Interest income:
Loans, including fees $ 17,158 $ 13,239 $ 14,138 $ 13,706 $ 13,860
Factored receivables, including fees 8,654 7,509 8,367 7,681 6,838
Taxable securities 659 678 644 666 663
Tax exempt securities 16 12 14 15 15
Cash deposits 110 141 117 50 77
Total interest income 26,597 21,579 23,280 22,118 21,453
Interest expense:
Deposits 1,667 1,570 1,498 1,289 1,141
Senior secured note 173 134 137
Junior subordinated debentures 278 272 276 276 272
Other 7 12 4 24 22
Total interest expense 1,952 1,854 1,951 1,723 1,572
Net interest income 24,645 19,725 21,329 20,395 19,881
Provision for loan losses 2,541 645 1,811 1,375 1,747
Net interest income after provision for loan losses 22,104 19,080 19,518 19,020 18,134
Noninterest income:
Service charges on deposits 666 612 647 811 813
Card income 578 523 516 544 548
Net OREO gains/(losses) and valuation adjustments 52 26 (242) (11) (252)
Net gains on sale of securities 242 62 10
Net gains on sale of loans 491 542 437 484 319
Fee income 502 422 553 448 421
Gain on branch sale 12,619
Bargain purchase gain 12,509
Asset management fees 1,274 958 486 374 129
Other 964 1,067 1,262 525 655
Total noninterest income 4,769 16,659 3,721 15,804 2,633
Noninterest expense:
Salaries and employee benefits 12,042 13,269 12,752 11,032 9,471
Occupancy, furniture and equipment 1,555 1,572 1,429 1,319 1,336
FDIC insurance and other regulatory assessments 271 263 221 280 280
Professional fees 852 1,327 1,146 1,043 793
Amortization of intangible assets 895 764 727 746 724
Advertising and promotion 526 543 366 1,102 683
Communications and technology 927 886 961 954 945
Other 2,567 2,159 2,083 1,985 1,928
Total noninterest expense 19,635 20,783 19,685 18,461 16,160
Net income before income tax 7,238 14,956 3,554 16,363 4,607
Income tax expense 2,586 912 747 6,089 1,626
Net income $ 4,652 $ 14,044 $ 2,807 $ 10,274 $ 2,981
Effect of noncontrolling interests and preferred shares (195) (192) (786) (779) (696)
Net income available to common stockholders $ 4,457 $ 13,852 $ 2,021 $ 9,495 $ 2,285

Loans held for investment summarized as of:

June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2015 2015 2014 2014 2014
Commercial real estate $ 234,090 $ 236,659 $ 249,164 $ 261,836 $ 265,129
Construction, land development, land 46,743 52,203 42,914 45,996 43,040
1-4 family residential properties 75,588 73,605 78,738 80,419 81,187
Farmland 25,701 24,805 22,496 20,059 19,644
Commercial 454,161 371,614 364,567 340,316 328,361
Factored receivables 199,716 171,452 180,910 169,112 156,272
Consumer 10,993 11,201 11,941 12,527 13,525
Mortgage warehouse 105,687 69,907 55,148 46,874 32,359
Total loans $ 1,152,679 $ 1,011,446 $ 1,005,878 $ 977,139 $ 939,517

A portion of our total loan portfolio consists of commercial finance products offered on a nationwide basis, as further summarized below:

June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2015 2015 2014 2014 2014
Equipment* $ 138,018 $ 118,273 $ 106,354 $ 94,460 $ 71,198
Asset based lending (General)* 64,836 36,511 46,388 50,046 48,699
Asset based lending (Healthcare)* 65,083 59,572 41,770 40,885 45,751
Factored receivables 199,716 171,452 180,910 169,112 156,272
Commercial finance $ 467,653 $ 385,808 $ 375,422 $ 354,503 $ 321,920
Total loans held for investment $ 1,152,679 $ 1,011,446 $ 1,005,878 $ 977,139 $ 939,517
Commercial finance as a % of total 41% 38% 37% 36% 34%
Community banking as a % of total 59% 62% 63% 64% 66%

* Denotes equipment loans offered under our Triumph Commercial Finance brand, general asset based loans offered under our Triumph Commercial Finance brand and healthcare asset based loan products offered under our Triumph Healthcare Finance brand.

Deposits summarized as of:

June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2015 2015 2014 2014 2014
Noninterest bearing demand $ 164,560 $ 167,538 $ 179,848 $ 154,750 $ 176,245
Interest bearing demand 228,909 231,718 236,525 209,491 248,992
Individual retirement accounts 56,285 55,773 55,034 54,378 53,856
Money market 116,019 120,001 117,514 125,371 138,204
Savings 73,016 74,236 70,407 72,012 73,207
Certificates of deposit 500,451 474,413 455,901 439,603 367,731
Brokered deposits 50,019 50,000 50,000 50,019 50,019
Total deposits $ 1,189,259 $ 1,173,679 $ 1,165,229 $ 1,105,624 $ 1,108,254

Net interest margin summarized for the three months ended:

June 30, 2015 March 31, 2015
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
Interest earning assets:
Interest earning cash balances $ 119,969 $ 110 0.37% $ 154,615 $ 141 0.37%
Taxable securities 153,073 609 1.60% 154,810 627 1.64%
Tax exempt securities 3,643 16 1.76% 5,910 12 0.82%
FHLB and FRB stock 5,288 50 3.79% 4,538 51 4.56%
Loans 1,090,472 25,812 9.49% 990,450 20,748 8.50%
Total interest earning assets $ 1,372,445 $ 26,597 7.77% $ 1,310,323 $ 21,579 6.68%
Noninterest earning assets:
Other assets 138,600 139,468
Total assets $ 1,511,045 $ 1,449,791
Interest bearing liabilities:
Deposits:
Interest bearing demand $ 239,033 $ 36 0.06% $ 230,455 $ 33 0.06%
Individual retirement accounts 55,778 168 1.21% 55,369 156 1.14%
Money market 116,517 66 0.23% 119,199 67 0.23%
Savings 74,088 9 0.05% 72,034 9 0.05%
Certificates of deposit 485,533 1,263 1.04% 468,573 1,181 1.02%
Brokered deposits 50,002 125 1.00% 50,003 124 1.01%
Total deposits 1,020,951 1,667 0.65% 995,633 1,570 0.64%
Short-term borrowings 28,862 7 0.10% 15,229 12 0.32%
Junior subordinated debentures 24,513 278 4.55% 24,449 272 4.51%
Total interest bearing liabilities $ 1,074,326 $ 1,952 0.73% $ 1,035,311 $ 1,854 0.73%
Noninterest bearing liabilities and equity:
Noninterest bearing demand deposits 170,240 160,875
Other liabilities 10,825 9,304
Total equity 255,654 244,301
Total liabilities and equity $ 1,511,045 $ 1,449,791
Net interest income $ 24,645 $ 19,725
Interest spread 7.04% 5.95%
Net interest margin 7.20% 6.11%

Metrics and non-GAAP financial reconciliation:

As of and for the Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands, except per share amounts) 2015 2015 2014 2014 2014
Net income available to common stockholders $ 4,457 $ 13,852 $ 2,021 $ 9,495 $ 2,285
Less: gain on branch sale, net of tax 7,892
Less: bargain purchase gain, nontaxable 12,509
Add: merger and acquisition expenses, net of tax 158
Add: incremental bonus accrual, net of tax 1,138
Less: escrow recovery from Doral Healthcare Finance, net of tax 195
Adjusted net income available to common stockholders $ 4,457 $ 2,444 $ 2,021 $ 1,603 $ 2,285
Weighted average shares outstanding - diluted 17,813,825 18,428,663 14,261,717 10,602,155 9,910,507
Less: adjusted effects of assumed Preferred Stock conversion 676,351 676,351
Adjusted weighted average shares outstanding - diluted 17,813,825 17,752,312 14,261,717 9,925,804 9,910,507
Adjusted diluted earnings per common share $ 0.25 $ 0.14 $ 0.14 $ 0.16 $ 0.23
Average common equity N/A $ 234,555 N/A N/A N/A
Less: average contribution impact of Doral Money, Inc transaction N/A 3,549 N/A N/A N/A
Adjusted average common equity N/A 231,006 N/A N/A N/A
Adjusted return on average common equity N/A 4.29% N/A N/A N/A
Average total assets N/A $ 1,449,791 N/A N/A N/A
Less: average contribution impact of Doral Money, Inc transaction N/A 3,549 N/A N/A N/A
Adjusted average total assets N/A 1,446,242 N/A N/A N/A
Adjusted return on average total assets N/A 0.69% N/A N/A N/A
Net income available to common stockholders $ 4,457 $ 13,852 $ 2,021 $ 9,495 $ 2,285
Average tangible common equity 215,846 205,204 156,888 109,944 102,107
Return on average tangible common equity 8.28% 27.38% 5.11% 34.26% 8.98%
Efficiency ratio:
Net interest income $ 24,645 $ 19,725 $ 21,329 $ 20,395 $ 19,881
Noninterest income 4,769 16,659 3,721 15,804 2,633
Operating revenue 29,414 36,384 25,050 36,199 22,514
Less: gain on branch sale 12,619
Less: bargain purchase gain 12,509
Less: escrow recovery from Doral Healthcare Finance 300
Adjusted operating revenue $ 29,414 $ 23,575 $ 25,050 $ 23,580 $ 22,514
Total noninterest expenses $ 19,635 $ 20,783 $ 19,685 $ 18,461 $ 16,160
Less: merger and acquisition expenses 243
Less: incremental bonus accrual 1,750
Adjusted noninterest expenses $ 19,635 $ 18,790 $ 19,685 $ 18,461 $ 16,160
Efficiency ratio 66.75% 79.70% 78.58% 78.29% 71.78%
Net noninterest expense to average assets ratio:
Total noninterest expenses $ 19,635 $ 20,783 $ 19,685 $ 18,461 $ 16,160
Less: merger and acquisition expenses 243
Less: incremental bonus accrual 1,750
Adjusted noninterest expense $ 19,635 $ 18,790 $ 19,685 $ 18,461 $ 16,160
Total noninterest income $ 4,769 $ 16,659 $ 3,721 $ 15,804 $ 2,633
Less: bargain purchase gain 12,509
Less: gain on branch sale 12,619
Less: escrow recovery from Doral Healthcare Finance 300
Adjusted noninterest income $ 4,769 $ 3,850 $ 3,721 $ 3,185 $ 2,633
Adjusted net noninterest expenses $ 14,866 $ 14,940 $ 15,964 $ 15,276 $ 13,527
Average total assets $ 1,511,045 $ 1,449,791 $ 1,427,475 $ 1,354,207 $ 1,359,503
Net noninterest expense to average assets ratio 3.95% 4.18% 4.44% 4.48% 3.99%
Reported yield on loans 9.49% 8.50% 8.98% 8.66% 8.83%
Effect of accretion income on acquired loans (0.53%) (0.46%) (0.69%) (0.63%) (1.08%)
Adjusted yield on loans 8.96% 8.04% 8.29% 8.03% 7.75%
Reported net interest margin 7.20% 6.11% 6.58% 6.69% 6.58%
Effect of accretion income on acquired loans (0.42%) (0.35%) (0.53%) (0.5%) (0.84%)
Adjusted net interest margin 6.78% 5.76% 6.05% 6.19% 5.74%
Total stockholders' equity $ 257,479 $ 252,677 $ 237,509 $ 149,931 $ 140,027
Less: Preferred stock liquidation preference 9,746 9,746 9,746 9,746 9,746
Total common stockholders' equity 247,733 242,931 227,763 140,185 130,281
Less: Goodwill and other intangibles 30,174 30,211 29,057 29,783 31,043
Tangible common stockholders' equity $ 217,559 $ 212,720 $ 198,706 $ 110,402 $ 99,238
Common shares outstanding 18,041,072 17,963,783 17,963,783 9,886,778 9,845,819
Tangible book value per share $ 12.06 $ 11.84 $ 11.06 $ 11.17 $ 10.08
Total assets at end of period $ 1,529,259 $ 1,472,743 $ 1,447,898 $ 1,347,798 $ 1,407,072
Less: Goodwill and other intangibles 30,174 30,211 29,057 29,783 31,043
Adjusted total assets at period end $ 1,499,085 $ 1,442,532 $ 1,418,841 $ 1,318,015 $ 1,376,029
Tangible common stockholders' equity ratio 14.51% 14.75% 14.00% 8.38% 7.21%

1) The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of such financial performance. The non-GAAP measures used by the Company include the following:

  • "Common stockholders' equity" is defined as total stockholders' equity at end of period less the liquidation preference value of the preferred stock.
  • "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, 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.
  • "Adjusted average common equity" is defined as average common equity less the average contribution impact of acquisitions.
  • "Adjusted average total assets" is defined as average total assets less the average contribution impact of acquisitions.
  • "Adjusted return on average common equity" is defined as adjusted net income available to common stockholders divided by adjusted average common equity.
  • "Adjusted return on average total assets" is defined as adjusted net income available to common stockholders divided by adjusted average total assets.
  • "Net interest margin" is defined as net interest income divided by average interest-earning assets.
  • "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.
  • "Efficiency ratio" is defined as noninterest expenses divided by our operating revenue, which is equal to net interest income plus noninterest 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 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.
  • "Net noninterest expense to average total assets" is defined as noninterest expenses net of noninterest 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.
  • "Adjusted yield on loans" is our yield on loans after excluding loan accretion from our acquired loan portfolio. Our management uses this metric to better assess the impact of purchase accounting on our yield on loans, as the effect of loan discount accretion is expected to decrease as the acquired loans roll off of our balance sheet.
  • "Adjusted net interest margin" is net interest margin after excluding loan accretion from the acquired loan portfolio. Our management uses this metric to better assess the impact of purchase accounting on net interest margin, as the effect of loan discount accretion is expected to decrease as the acquired loans mature or roll off of our balance sheet.

2) Asset quality ratios exclude loans held for sale.

3) Current quarter ratios are preliminary and, beginning January 1, 2015, are calculated under the requirements of Basel III.

CONTACT: Investor Relations: Luke Wyse Vice President, Finance & Investor Relations lwyse@triumphllc.com 214-365-6936 Media Contact: Amanda Tavackoli Vice President, Marketing & Communication atavackoli@triumphllc.com 214-365-6930

Source:Triumph Bancorp, Inc.