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Triumph Bancorp Reports Third Quarter Net Income to Common Stockholders of $5.7 Million

DALLAS, Oct. 28, 2015 (GLOBE NEWSWIRE) -- Triumph Bancorp, Inc. (NASDAQ:TBK) today announced earnings and operating results for the third quarter of 2015.

"I am pleased that our third quarter results demonstrate performance in line with our strategic plan," said Aaron P. Graft, Chief Executive Officer, Triumph Bancorp, Inc.

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.

Third Quarter Highlights

  • For the third quarter of 2015, net income was $5.9 million and net income available to common stockholders was $5.7 million, compared to net income of $4.7 million and net income available to common stockholders of $4.5 million for the quarter ended June 30, 2015. The results for the quarter ended September 30, 2015 include a net benefit of $1.7 million recorded to increase the bargain purchase gain realized on the acquisition of Doral Money, Inc. ("DMI"), bringing the gain on this transaction to $14.2 million.
  • Fully diluted earnings per share were $0.32 for the quarter ended September 30, 2015, compared to $0.25 for the quarter ended June 30, 2015. Excluding the impact of third quarter 2015 measurement period adjustments to the bargain purchase gain associated with the DMI acquisition, adjusted fully diluted earnings per share were $0.22 for the quarter ended September 30, 2015.
  • For the quarter ended September 30, 2015, our annualized return on average common equity and return on average assets were 9.00% and 1.50%, respectively, compared to an annualized return on average common equity and return on average assets of 7.27% and 1.23%, respectively, for the quarter ended June 30, 2015. Our ratio of tangible common stockholders' equity to tangible assets was 14.50% as of September 30, 2015.
  • Total loans held for investment increased $32.6 million, or 2.8%, during the third quarter of 2015, and have increased $179.4 million, or 17.8%, during the nine months ended September 30, 2015.
  • Net interest margin ("NIM") was 6.45% for the quarter ended September 30, 2015 and 6.59% for the nine months ended September 30, 2015.

Balance Sheet

Total loans held for investment were $1.185 billion at September 30, 2015, an increase of $32.6 million or 2.8% during the third 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 $497.8 million as of September 30, 2015, an increase of $30.1 million or 6.4% in the third quarter of 2015.

Total deposits were $1.200 billion at September 30, 2015, an increase of $10.8 million or 0.9% for the third quarter of 2015. Non-interest-bearing deposits accounted for 14% of total deposits and non-time deposits accounted for 47% of total deposits. The average cost of our total funds was 0.64% for the quarter ended September 30, 2015 compared to 0.63% for the quarter ended June 30, 2015, on an annualized basis.

Net Interest Income

We earned net interest income for the quarter ended September 30, 2015 of $23.2 million compared to $24.6 million for the quarter ended June 30, 2015. Yields on loans for the quarter ended September 30, 2015 were down 115 bps to 8.34% (7.96% adjusted to exclude loan discount accretion) compared to 9.49% (8.96% adjusted to exclude loan discount accretion) for the quarter ended June 30, 2015. NIM decreased 75 bps to 6.45% for the quarter ended September 30, 2015 from 7.20% for the quarter ended June 30, 2015. NIM adjusted to exclude loan discount accretion was 6.14% for the quarter ended September 30, 2015 compared to 6.78% for the quarter ended June 30, 2015. As previously reported, the higher NIM levels for the prior quarter ended June 30, 2015 were impacted by $2.3 million of delinquent interest and fees received in conjunction with the resolution and restructuring of two specific loans.

Asset Quality

Non-performing Assets ("NPAs") improved 14 bps from June 30, 2015 to September 30, 2015 to 1.12% of total assets, and our ratio of past due to total loans improved to 2.14%. We experienced net charge-offs of $0.1 million for the quarter ended September 30, 2015 compared to net charge-offs of $0.4 million for the quarter ended June 30, 2015. Our provision for loan losses was $0.2 million for the quarter ended September 30, 2015 compared to $2.5 million for the quarter ended June 30, 2015. From June 30, 2015 to September 30, 2015, our allowance for loan and lease losses ("ALLL") remained relatively stable from $11.5 million or 0.99% of total loans to $11.5 million or 0.97% of total loans.

Non-interest Income and Expense

We earned non-interest income for the quarter ended September 30, 2015 of $6.3 million (or $4.6 million excluding the DMI bargain purchase adjustment) compared to $4.8 million for the quarter ended June 30, 2015. Non-interest income for the quarter ended September 30, 2015 included $1.7 million of asset management fees earned by our asset management subsidiary, Triumph Capital Advisors.

For the quarter ended September 30, 2015, non-interest expense totaled $20.5 million, compared to $19.6 million for the quarter ended June 30, 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 8:30 a.m. Central Time on Thursday, October 29, 2015.

To participate in the live conference call, please dial 1 (855) 779-1042 (U.S. and Canada) and enter Conference ID # 60864808. 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/2kqvb5n3/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 non-performing 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
September 30, June 30, March 31, December 31, September 30,
2015 2015 2015 2014 2014
Financial Highlights (Dollars in thousands):
Total assets $ 1,581,463 $ 1,529,259 $ 1,472,743 $ 1,447,898 $ 1,347,798
Loans held for investment $ 1,185,301 $ 1,152,679 $ 1,011,446 $ 1,005,878 $ 977,139
Deposits $ 1,200,036 $ 1,189,259 $ 1,173,679 $ 1,165,229 $ 1,105,624
Net income available to common stockholders $ 5,732 $ 4,457 $ 13,852 $ 2,021 $ 9,495
Performance Ratios - Annualized:
Return on average assets 1.50% 1.23% 3.93% 0.78% 3.01%
Return on average common equity (1) 9.00% 7.27% 23.95% 4.30% 26.84%
Return on average tangible common equity (1) 10.20% 8.28% 27.38% 5.11% 34.26%
Return on average total equity 8.96% 7.30% 23.31% 5.02% 23.16%
Yield on loans 8.34% 9.49% 8.50% 8.98% 8.66%
Adjusted yield on loans (1) 7.96% 8.96% 8.04% 8.29% 8.03%
Cost of interest bearing deposits 0.69% 0.65% 0.64% 0.61% 0.56%
Cost of total deposits 0.59% 0.56% 0.55% 0.52% 0.48%
Cost of total funds 0.64% 0.63% 0.63% 0.65% 0.59%
Net interest margin (1) 6.45% 7.20% 6.11% 6.58% 6.69%
Adjusted net interest margin (1) 6.14% 6.78% 5.76% 6.05% 6.19%
Net non-interest expense to average assets (1) 4.04% 3.95% 4.18% 4.44% 4.48%
Efficiency ratio (1) 73.85% 66.75% 79.70% 78.58% 78.29%
Asset Quality:(2)
Past due to total loans 2.14% 2.33% 2.91% 2.57% 2.61%
Non-performing loans to total loans 0.97% 1.12% 1.66% 1.66% 1.80%
Non-performing assets to total assets 1.12% 1.26% 1.62% 1.73% 2.05%
ALLL to non-performing loans 100.00% 88.51% 55.28% 53.02% 41.68%
ALLL to total loans 0.97% 0.99% 0.92% 0.88% 0.75%
Net charge-offs to average loans 0.01% 0.03% 0.02% 0.03% 0.03%
Capital:(3)
Tier 1 capital to average assets 16.87% 17.01% 17.35% 15.92% 12.20%
Tier 1 capital to risk-weighted assets 19.34% 19.16% 20.72% 19.56% 14.59%
Common equity tier 1 capital to risk-weighted assets 17.18% 16.98% 18.33% N/A N/A
Total capital to risk-weighted assets 20.21% 20.04% 21.51% 20.35% 15.27%
Total equity to total assets 16.69% 16.84% 17.16% 16.40% 13.05%
Total stockholders' equity to total assets 16.69% 16.84% 17.16% 16.40% 11.12%
Tangible common stockholders' equity to tangible assets 14.50% 14.51% 14.75% 14.00% 8.38%
Per Share Amounts:
Book value per share $ 14.09 $ 13.73 $ 13.52 $ 12.68 $ 14.18
Tangible book value per share (1) $ 12.48 $ 12.06 $ 11.84 $ 11.06 $ 11.17
Basic earnings per common share $ 0.32 $ 0.25 $ 0.78 $ 0.14 $ 0.96
Diluted earnings per common share $ 0.32 $ 0.25 $ 0.76 $ 0.14 $ 0.91
Shares outstanding end of period 18,040,072 18,041,072 17,963,783 17,963,783 9,886,778

Unaudited consolidated balance sheet as of:

September 30, June 30, March 31, December 31, September 30,
(Dollars in thousands) 2015 2015 2015 2014 2014
ASSETS
Total cash and cash equivalents $ 115,783 $ 99,714 $ 178,442 $ 160,888 $ 75,625
Securities - available for sale 156,820 158,693 161,360 162,024 165,489
Securities - held to maturity 747 746 746 745 745
Loans held for sale 2,174 4,096 3,401 3,288 7,295
Loans held for investment 1,185,301 1,152,679 1,011,446 1,005,878 977,139
Allowance for loan and lease losses (11,544) (11,462) (9,286) (8,843) (7,320)
Loans, net 1,173,757 1,141,217 1,002,160 997,035 969,819
FHLB and FRB stock 7,992 5,707 4,466 4,903 5,826
Premises and equipment, net 21,807 21,677 21,716 21,933 21,744
Other real estate owned ("OREO"), net 6,201 6,322 6,991 8,423 10,019
Goodwill and intangible assets, net 28,995 30,174 30,211 29,057 29,783
Bank-owned life insurance 29,406 29,295 29,193 29,083 28,955
Deferred tax asset, net 15,838 15,582 14,983 15,956 16,523
Other assets 21,943 16,036 19,074 14,563 15,975
Total assets $ 1,581,463 $ 1,529,259 $ 1,472,743 $ 1,447,898 $ 1,347,798
LIABILITIES
Non-interest bearing deposits $ 167,931 $ 164,560 $ 167,538 $ 179,848 $ 154,750
Interest bearing deposits 1,032,105 1,024,699 1,006,141 985,381 950,874
Total deposits 1,200,036 1,189,259 1,173,679 1,165,229 1,105,624
Customer repurchase agreements 15,584 13,011 8,666 9,282 15,644
Federal Home Loan Bank advances 61,000 19,000 3,000
Senior secured note 11,630
Junior subordinated debentures 24,620 24,553 24,487 24,423 24,359
Other liabilities 16,304 25,957 13,234 8,455 14,713
Total liabilities 1,317,544 1,271,780 1,220,066 1,210,389 1,171,970
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 181 181 180 180 99
Additional paid-in-capital 193,465 192,605 191,745 191,049 105,304
Treasury stock, at cost (184) (170) (161) (161) (68)
Retained earnings 59,785 54,053 49,596 35,744 34,014
Accumulated other comprehensive income 926 1,064 1,571 951 836
Total stockholders' equity 263,919 257,479 252,677 237,509 149,931
Noncontrolling interests 25,897
Total equity 263,919 257,479 252,677 237,509 175,828
Total liabilities and equity $ 1,581,463 $ 1,529,259 $ 1,472,743 $ 1,447,898 $ 1,347,798

Unaudited consolidated statement of income for the three months ended:

September 30, June 30, March 31, December 31, September 30,
(Dollars in thousands) 2015 2015 2015 2014 2014
Interest income:
Loans, including fees $ 15,716 $ 17,158 $ 13,239 $ 14,138 $ 13,706
Factored receivables, including fees 8,829 8,654 7,509 8,367 7,681
Taxable securities 649 659 678 644 666
Tax exempt securities 17 16 12 14 15
Cash deposits 92 110 141 117 50
Total interest income 25,303 26,597 21,579 23,280 22,118
Interest expense:
Deposits 1,764 1,667 1,570 1,498 1,289
Senior secured note 173 134
Junior subordinated debentures 283 278 272 276 276
Other borrowings 25 7 12 4 24
Total interest expense 2,072 1,952 1,854 1,951 1,723
Net interest income 23,231 24,645 19,725 21,329 20,395
Provision for loan losses 165 2,541 645 1,811 1,375
Net interest income after provision for loan losses 23,066 22,104 19,080 19,518 19,020
Non-interest income:
Service charges on deposits 710 666 612 647 811
Card income 574 578 523 516 544
Net OREO gains/(losses) and valuation adjustments (58) 52 26 (242) (11)
Net gains on sale of securities 15 242 62 10
Net gains on sale of loans 363 491 542 437 484
Fee income 542 502 422 553 448
Gain on branch sale 12,619
Bargain purchase gain 1,708 12,509
Asset management fees 1,744 1,274 958 486 374
Other 700 964 1,067 1,262 525
Total non-interest income 6,298 4,769 16,659 3,721 15,804
Non-interest expense:
Salaries and employee benefits 12,416 12,042 13,269 12,752 11,032
Occupancy, furniture and equipment 1,575 1,555 1,572 1,429 1,319
FDIC insurance and other regulatory assessments 252 271 263 221 280
Professional fees 1,344 852 1,327 1,146 1,043
Amortization of intangible assets 1,179 895 764 727 746
Advertising and promotion 618 526 543 366 1,102
Communications and technology 951 927 886 961 954
Other 2,210 2,567 2,159 2,083 1,985
Total non-interest expense 20,545 19,635 20,783 19,685 18,461
Net income before income tax 8,819 7,238 14,956 3,554 16,363
Income tax expense 2,891 2,586 912 747 6,089
Net income $ 5,928 $ 4,652 $ 14,044 $ 2,807 $ 10,274
Effect of noncontrolling interests and preferred shares (196) (195) (192) (786) (779)
Net income available to common stockholders $ 5,732 $ 4,457 $ 13,852 $ 2,021 $ 9,495

Loans held for investment summarized as of:

September 30, June 30, March 31, December 31, September 30,
(Dollars in thousands) 2015 2015 2015 2014 2014
Commercial real estate $ 247,175 $ 234,090 $ 236,659 $ 249,164 $ 261,836
Construction, land development, land 52,446 46,743 52,203 42,914 45,996
1-4 family residential properties 77,043 75,588 73,605 78,738 80,419
Farmland 25,784 25,701 24,805 22,496 20,059
Commercial 468,055 454,161 371,614 364,567 340,316
Factored receivables 201,803 199,716 171,452 180,910 169,112
Consumer 10,632 10,993 11,201 11,941 12,527
Mortgage warehouse 102,363 105,687 69,907 55,148 46,874
Total loans $ 1,185,301 $ 1,152,679 $ 1,011,446 $ 1,005,878 $ 977,139

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

September 30, June 30, March 31, December 31, September 30,
(Dollars in thousands) 2015 2015 2015 2014 2014
Equipment* $ 143,483 $ 138,018 $ 118,273 $ 106,354 $ 94,460
Asset based lending (General)* 85,641 64,836 36,511 46,388 50,046
Asset based lending (Healthcare)* 66,832 65,083 59,572 41,770 40,885
Factored receivables 201,803 199,716 171,452 180,910 169,112
Commercial finance $ 497,759 $ 467,653 $ 385,808 $ 375,422 $ 354,503
Total loans held for investment $ 1,185,301 $ 1,152,679 $ 1,011,446 $ 1,005,878 $ 977,139
Commercial finance as a % of total 42% 41% 38% 37% 36%
Community banking as a % of total 58% 59% 62% 63% 64%

* 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:

September 30, June 30, March 31, December 31, September 30,
(Dollars in thousands) 2015 2015 2015 2014 2014
Non-interest bearing demand $ 167,931 $ 164,560 $ 167,538 $ 179,848 $ 154,750
Interest bearing demand 206,603 228,909 231,718 236,525 209,491
Individual retirement accounts 58,619 56,285 55,773 55,034 54,378
Money market 117,888 116,019 120,001 117,514 125,371
Savings 72,244 73,016 74,236 70,407 72,012
Certificates of deposit 526,732 500,451 474,413 455,901 439,603
Brokered deposits 50,019 50,019 50,000 50,000 50,019
Total deposits $ 1,200,036 $ 1,189,259 $ 1,173,679 $ 1,165,229 $ 1,105,624

Net interest margin summarized for the three months ended:

September 30, 2015 June 30, 2015
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
Interest earning assets:
Interest earning cash balances $ 96,566 $ 92 0.38% $ 119,969 $ 110 0.37%
Taxable securities 154,254 598 1.54% 153,073 609 1.60%
Tax exempt securities 2,554 17 2.64% 3,643 16 1.76%
FHLB and FRB stock 6,959 51 2.91% 5,288 50 3.79%
Loans 1,167,670 24,545 8.34% 1,090,472 25,812 9.49%
Total interest earning assets $ 1,428,003 $ 25,303 7.03% $ 1,372,445 $ 26,597 7.77%
Non-interest earning assets:
Other assets 137,695 138,600
Total assets $ 1,565,698 $ 1,511,045
Interest bearing liabilities:
Deposits:
Interest bearing demand $ 211,823 $ 32 0.06% $ 239,033 $ 36 0.06%
Individual retirement accounts 57,227 177 1.23% 55,778 168 1.21%
Money market 116,375 66 0.23% 116,517 66 0.23%
Savings 72,617 9 0.05% 74,088 9 0.05%
Certificates of deposit 509,224 1,354 1.05% 485,533 1,263 1.04%
Brokered deposits 50,002 126 1.00% 50,002 125 1.00%
Total deposits 1,017,268 1,764 0.69% 1,020,951 1,667 0.65%
Junior subordinated debentures 24,580 283 4.57% 24,513 278 4.55%
Short-term borrowings 69,778 25 0.14% 28,862 7 0.10%
Total interest bearing liabilities $ 1,111,626 $ 2,072 0.74% $ 1,074,326 $ 1,952 0.73%
Non-interest bearing liabilities and equity:
Non-interest bearing demand deposits 171,887 170,240
Other liabilities 19,841 10,825
Total equity 262,344 255,654
Total liabilities and equity $ 1,565,698 $ 1,511,045
Net interest income $ 23,231 $ 24,645
Interest spread 6.29% 7.04%
Net interest margin 6.45% 7.20%

Metrics and non-GAAP financial reconciliation:

As of and for the Three Months Ended
September 30, June 30, March 31, December 31, September 30,
(Dollars in thousands, except per share amounts) 2015 2015 2015 2014 2014
Net income $ 5,928 $ 4,652 $ 14,044 $ 2,807 $ 10,274
Less: gain on branch sale, net of tax 7,892
Less: bargain purchase gain, non-taxable 1,708 12,509
Add: merger and acquisition expenses, net of tax 158
Add: incremental bonus related to acquisition, net of tax 1,138
Less: escrow recovery from Doral Healthcare Finance, net of tax 195
Adjusted net income $ 4,220 $ 4,652 $ 2,636 $ 2,807 $ 2,382
Effect of noncontrolling interests and preferred shares (196) (195) (192) (786) (779)
Adjusted net income available to common stockholders $ 4,024 $ 4,457 $ 2,444 $ 2,021 $ 1,603
Weighted average shares outstanding - diluted 18,587,821 17,813,825 18,428,663 14,261,717 10,602,155
Less: adjusted effects of assumed Preferred Stock conversion 676,351 676,351 676,351
Adjusted weighted average shares outstanding - diluted 17,911,470 17,813,825 17,752,312 14,261,717 9,925,804
Adjusted diluted earnings per common share $ 0.22 $ 0.25 $ 0.14 $ 0.14 $ 0.16
Average common equity $ 252,599 N/A $ 234,555 N/A N/A
Less: average contribution impact of DMI transaction 1,708 N/A 3,549 N/A N/A
Adjusted average common equity 250,891 N/A 231,006 N/A N/A
Adjusted return on average common equity 6.36% N/A 4.29% N/A N/A
Average total assets $ 1,565,698 N/A $ 1,449,791 N/A N/A
Less: average contribution impact of DMI transaction 1,708 N/A 3,549 N/A N/A
Adjusted average total assets 1,563,990 N/A 1,446,242 N/A N/A
Adjusted return on average total assets 1.07% N/A 0.74% N/A N/A
Net income available to common stockholders $ 5,732 $ 4,457 $ 13,852 $ 2,021 $ 9,495
Average tangible common equity 222,884 215,846 205,204 156,888 109,944
Return on average tangible common equity 10.20% 8.28% 27.38% 5.11% 34.26%
Efficiency ratio:
Net interest income $ 23,231 $ 24,645 $ 19,725 $ 21,329 $ 20,395
Non-interest income 6,298 4,769 16,659 3,721 15,804
Operating revenue 29,529 29,414 36,384 25,050 36,199
Less: gain on branch sale 12,619
Less: bargain purchase gain 1,708 12,509
Less: escrow recovery from Doral Healthcare Finance 300
Adjusted operating revenue $ 27,821 $ 29,414 $ 23,575 $ 25,050 $ 23,580
Total non-interest expenses $ 20,545 $ 19,635 $ 20,783 $ 19,685 $ 18,461
Less: merger and acquisition expenses 243
Less: incremental bonus related to acquisition 1,750
Adjusted non-interest expenses $ 20,545 $ 19,635 $ 18,790 $ 19,685 $ 18,461
Efficiency ratio 73.85% 66.75% 79.70% 78.58% 78.29%
Net non-interest expense to average assets ratio:
Total non-interest expenses $ 20,545 $ 19,635 $ 20,783 $ 19,685 $ 18,461
Less: merger and acquisition expenses 243
Less: incremental bonus related to acquisition 1,750
Adjusted non-interest expense $ 20,545 $ 19,635 $ 18,790 $ 19,685 $ 18,461
Total non-interest income $ 6,298 $ 4,769 $ 16,659 $ 3,721 $ 15,804
Less: bargain purchase gain 1,708 12,509
Less: gain on branch sale 12,619
Less: escrow recovery from Doral Healthcare Finance 300
Adjusted non-interest income $ 4,590 $ 4,769 $ 3,850 $ 3,721 $ 3,185
Adjusted net non-interest expenses $ 15,955 $ 14,866 $ 14,940 $ 15,964 $ 15,276
Average total assets $ 1,565,698 $ 1,511,045 $ 1,449,791 $ 1,427,475 $ 1,354,207
Net non-interest expense to average assets ratio 4.04% 3.95% 4.18% 4.44% 4.48%
Reported yield on loans 8.34% 9.49% 8.50% 8.98% 8.66%
Effect of accretion income on acquired loans (0.38%) (0.53%) (0.46%) (0.69%) (0.63%)
Adjusted yield on loans 7.96% 8.96% 8.04% 8.29% 8.03%
Reported net interest margin 6.45% 7.20% 6.11% 6.58% 6.69%
Effect of accretion income on acquired loans (0.31%) (0.42%) (0.35%) (0.53%) (0.50%)
Adjusted net interest margin 6.14% 6.78% 5.76% 6.05% 6.19%
Total stockholders' equity $ 263,919 $ 257,479 $ 252,677 $ 237,509 $ 149,931
Less: Preferred stock liquidation preference 9,746 9,746 9,746 9,746 9,746
Total common stockholders' equity 254,173 247,733 242,931 227,763 140,185
Less: Goodwill and other intangibles 28,995 30,174 30,211 29,057 29,783
Tangible common stockholders' equity $ 225,178 $ 217,559 $ 212,720 $ 198,706 $ 110,402
Common shares outstanding 18,040,072 18,041,072 17,963,783 17,963,783 9,886,778
Tangible book value per share $ 12.48 $ 12.06 $ 11.84 $ 11.06 $ 11.17
Total assets at end of period $ 1,581,463 $ 1,529,259 $ 1,472,743 $ 1,447,898 $ 1,347,798
Less: Goodwill and other intangibles 28,995 30,174 30,211 29,057 29,783
Adjusted total assets at period end $ 1,552,468 $ 1,499,085 $ 1,442,532 $ 1,418,841 $ 1,318,015
Tangible common stockholders' equity ratio 14.50% 14.51% 14.75% 14.00% 8.38%

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 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 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 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.
  • "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.