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Triumph Bancorp Reports First Quarter Net Income to Common Stockholders of $4.8 Million

DALLAS, April 27, 2016 (GLOBE NEWSWIRE) -- Triumph Bancorp, Inc. (NASDAQ:TBK) today announced earnings and operating results for the first quarter of 2016.

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.

2016 First Quarter Highlights

  • For the first quarter of 2016, net income was $5.0 million and net income available to common stockholders was $4.8 million, compared to net income of $4.5 million and net income available to common stockholders of $4.3 million for the quarter ended December 31, 2015.
  • Fully diluted earnings per share were $0.27 for the quarter ended March 31, 2016, compared to $0.24 for the quarter ended December 31, 2015.
  • For the quarter ended March 31, 2016, our annualized return on average common equity and return on average assets were 7.37% and 1.20%, respectively, compared to an annualized return on average common equity and return on average assets of 6.63% and 1.10%, respectively, for the quarter ended December 31, 2015. Our ratio of tangible common stockholders’ equity to tangible assets was 14.30% as of March 31, 2016.
  • Net interest margin (“NIM”) was 5.90% for the quarter ended March 31, 2016.

Balance Sheet

Average loans outstanding for the first quarter of 2016 were $1.227 billion, an increase of $37.4 million, or 3.1%, from the average balance for the quarter ended December 31, 2015. Total loans held for investment were $1.246 billion at March 31, 2016, a decrease $46.0 million or 3.6% from December 31, 2015. Our commercial finance loan portfolio totaled $528.1 million as of March 31, 2016, an increase of $7.1 million or 1.4% in the first quarter.

Total deposits were $1.260 billion at March 31, 2016, an increase of $11.4 million or 0.9% for the first quarter of 2016. Non-interest-bearing deposits accounted for 13% of total deposits and non-time deposits accounted for 46% of total deposits. The average cost of our total funds was 0.69% for the quarter ended March 31, 2016 compared to 0.66% for the quarter ended December 31, 2015, on an annualized basis.

Net Interest Income

We earned net interest income for the quarter ended March 31, 2016 of $22.5 million compared to $23.1 million for the quarter ended December 31, 2015. Yields on loans for the quarter ended March 31, 2016 were down 33 bps from the prior quarter to 7.84% (down 37 basis points from the prior quarter to 7.47% adjusted to exclude loan discount accretion). NIM decreased 30 bps to 5.90% for the quarter ended March 31, 2016 from 6.20% for the quarter ended December 31, 2015. NIM adjusted to exclude loan discount accretion was 5.61% for the quarter ended March 31, 2016 compared to 5.94% for the quarter ended December 31, 2015.

Asset Quality

Non-performing assets increased 62 bps from December 31, 2015 to March 31, 2016 to 1.72% of total assets. The ratio of past due to total loans increased to 3.61% at March 31, 2016 from 2.41% at December 31, 2015. We recorded net recoveries of $0.04 million for the quarter ended March 31, 2016 compared to net charge-offs of $0.2 million for the quarter ended December 31, 2015. We recorded a negative provision for loan losses of $0.5 million for the quarter ended March 31, 2016 compared to a provision of $1.2 million for the quarter ended December 31, 2015. From December 31, 2015 to March 31, 2016, our allowance for loan and lease losses (“ALLL”) decreased from $12.6 million or 0.97% of total loans to $12.1 million or 0.97% of total loans.

Non-interest Income and Expense

We earned non-interest income for the quarter ended March 31, 2016 of $5.0 million compared to $5.6 million for the quarter ended December 31, 2015. Non-interest income for the quarter ended December 31, 2015 included net benefits of $0.9 million recorded to increase the bargain purchase gain realized on the acquisition of Doral Money, Inc.

For the quarter ended March 31, 2016, non-interest expense totaled $20.1 million, compared to $20.9 million for the quarter ended December 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 8:30 a.m. Central Time on Thursday, April 28, 2016.

To participate in the live conference call, please dial 1 (855) 779-1042 (U.S. and Canada) and enter Conference ID # 92155246. 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/fydwgo6t. 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 (including our pending acquisition of ColoEast Bankshares, Inc.) 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 February 26, 2016.

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
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
Financial Highlights (Dollars in thousands):
Total assets $1,687,795 $1,691,313 $1,581,463 $1,529,259 $1,472,743
Loans held for investment $1,245,840 $1,291,885 $1,185,301 $1,152,679 $1,011,446
Deposits $1,260,393 $1,248,950 $1,200,036 $1,189,259 $1,173,679
Net income available to common stockholders $4,812 $4,312 $5,732 $4,457 $13,852
Performance Ratios - Annualized:
Return on average assets 1.20% 1.10% 1.50% 1.23% 3.93%
Return on average common equity (1) 7.37% 6.63% 9.00% 7.27% 23.95%
Return on average tangible common equity (1) 8.23% 7.45% 10.20% 8.28% 27.38%
Return on average total equity 7.39% 6.68% 8.96% 7.30% 23.31%
Yield on loans 7.84% 8.17% 8.34% 9.49% 8.50%
Adjusted yield on loans (1) 7.47% 7.84% 7.96% 8.96% 8.04%
Cost of interest bearing deposits 0.74% 0.71% 0.69% 0.65% 0.64%
Cost of total deposits 0.64% 0.61% 0.59% 0.56% 0.55%
Cost of total funds 0.69% 0.66% 0.64% 0.63% 0.63%
Net interest margin (1) 5.90% 6.20% 6.45% 7.20% 6.11%
Adjusted net interest margin (1) 5.61% 5.94% 6.14% 6.78% 5.76%
Net non-interest expense to average assets (1)(2) 3.61% 3.96% 4.04% 3.95% 4.18%
Efficiency ratio (1)(2) 73.09% 75.40% 73.85% 66.75% 79.70%
Asset Quality:(3)
Past due to total loans 3.61% 2.41% 2.14% 2.33% 2.91%
Non-performing loans to total loans 1.70% 1.03% 0.97% 1.12% 1.66%
Non-performing assets to total assets 1.72% 1.10% 1.12% 1.26% 1.62%
ALLL to non-performing loans 56.96% 94.10% 100.00% 88.51% 55.28%
ALLL to total loans 0.97% 0.97% 0.97% 0.99% 0.92%
Net charge-offs to average loans 0.00% 0.01% 0.01% 0.03% 0.02%
Capital:(4)
Tier 1 capital to average assets 16.24% 16.56% 16.87% 17.01% 17.35%
Tier 1 capital to risk-weighted assets 18.79% 18.23% 19.34% 19.16% 20.72%
Common equity tier 1 capital to risk-weighted assets 16.62% 16.23% 17.18% 16.98% 18.33%
Total capital to risk-weighted assets 19.65% 19.11% 20.21% 20.04% 21.51%
Total equity to total assets 16.24% 15.85% 16.69% 16.84% 17.16%
Tangible common stockholders' equity to tangible assets 14.30% 13.85% 14.50% 14.51% 14.75%
Per Share Amounts:
Book value per share $14.67 $14.34 $14.09 $13.73 $13.52
Tangible book value per share (1) $13.18 $12.79 $12.48 $12.06 $11.84
Basic earnings per common share $0.27 $0.24 $0.32 $0.25 $0.78
Diluted earnings per common share $0.27 $0.24 $0.32 $0.25 $0.76
Adjusted diluted earnings per common share(1)(2) $0.27 $0.19 $0.22 $0.25 $0.14
Shares outstanding end of period 18,015,423 18,018,200 18,040,072 18,041,072 17,963,783

Unaudited consolidated balance sheet as of:

March 31, December 31, September 30, June 30, March 31,
(Dollars in thousands) 2016 2015 2015 2015 2015
ASSETS
Total cash and cash equivalents $123,715 $105,277 $115,783 $99,714 $178,442
Securities - available for sale 161,517 163,169 156,820 158,693 161,360
Securities - held to maturity 25,796 747 746 746
Loans held for sale 3,043 1,341 2,174 4,096 3,401
Loans held for investment 1,245,840 1,291,885 1,185,301 1,152,679 1,011,446
Allowance for loan and lease losses (12,093) (12,567) (11,544) (11,462) (9,286)
Loans, net 1,233,747 1,279,318 1,173,757 1,141,217 1,002,160
FHLB and FRB stock 4,234 3,818 7,992 5,707 4,466
Premises and equipment, net 19,934 22,227 21,807 21,677 21,716
Other real estate owned ("OREO"), net 7,478 5,177 6,201 6,322 6,991
Goodwill and intangible assets, net 26,877 27,854 28,995 30,174 30,211
Bank-owned life insurance 29,658 29,535 29,406 29,295 29,193
Deferred tax asset, net 15,240 15,945 15,838 15,582 14,983
Other assets 36,556 37,652 21,943 16,036 19,074
Total assets $1,687,795 $1,691,313 $1,581,463 $1,529,259 $1,472,743
LIABILITIES
Non-interest bearing deposits $160,818 $168,264 $167,931 $164,560 $167,538
Interest bearing deposits 1,099,575 1,080,686 1,032,105 1,024,699 1,006,141
Total deposits 1,260,393 1,248,950 1,200,036 1,189,259 1,173,679
Customer repurchase agreements 9,641 9,317 15,584 13,011 8,666
Federal Home Loan Bank advances 110,000 130,000 61,000 19,000
Junior subordinated debentures 24,754 24,687 24,620 24,553 24,487
Other liabilities 8,893 10,321 16,304 25,957 13,234
Total liabilities 1,413,681 1,423,275 1,317,544 1,271,780 1,220,066
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 181 181 181 181 180
Additional paid-in-capital 194,687 194,297 193,465 192,605 191,745
Treasury stock, at cost (597) (560) (184) (170) (161)
Retained earnings 68,909 64,097 59,785 54,053 49,596
Accumulated other comprehensive income 1,188 277 926 1,064 1,571
Total equity 274,114 268,038 263,919 257,479 252,677
Total liabilities and equity $1,687,795 $1,691,313 $1,581,463 $1,529,259 $1,472,743

Unaudited consolidated statement of income for the three months ended:

March 31, December 31, September 30, June 30, March 31,
(Dollars in thousands) 2016 2015 2015 2015 2015
Interest income:
Loans, including fees $16,088 $15,524 $15,716 $17,158 $13,239
Factored receivables, including fees 7,822 8,952 8,829 8,654 7,509
Taxable securities 768 669 649 659 678
Tax exempt securities 7 14 17 16 12
Cash deposits 208 122 92 110 141
Total interest income 24,893 25,281 25,303 26,597 21,579
Interest expense:
Deposits 1,993 1,905 1,764 1,667 1,570
Junior subordinated debentures 302 288 283 278 272
Other borrowings 109 38 25 7 12
Total interest expense 2,404 2,231 2,072 1,952 1,854
Net interest income 22,489 23,050 23,231 24,645 19,725
Provision for loan losses (511) 1,178 165 2,541 645
Net interest income after provision for loan losses 23,000 21,872 23,066 22,104 19,080
Non-interest income:
Service charges on deposits 659 744 710 666 612
Card income 546 559 574 578 523
Net OREO gains/(losses) and valuation adjustments (11) (128) (58) 52 26
Net gains on sale of securities 5 2 15 242
Net gains on sale of loans 12 234 363 491 542
Fee income 534 465 542 502 422
Bargain purchase gain 900 1,708 12,509
Asset management fees 1,629 1,670 1,744 1,274 958
Other 1,607 1,125 700 964 1,067
Total non-interest income 4,981 5,571 6,298 4,769 16,659
Non-interest expense:
Salaries and employee benefits 12,252 12,448 12,416 12,042 13,269
Occupancy, furniture and equipment 1,493 1,546 1,575 1,555 1,572
FDIC insurance and other regulatory assessments 224 300 252 271 263
Professional fees 1,073 906 1,344 852 1,327
Amortization of intangible assets 977 1,141 1,179 895 764
Advertising and promotion 519 374 618 526 543
Communications and technology 1,432 1,596 951 927 886
Other 2,108 2,591 2,210 2,567 2,159
Total non-interest expense 20,078 20,902 20,545 19,635 20,783
Net income before income tax 7,903 6,541 8,819 7,238 14,956
Income tax expense 2,897 2,032 2,891 2,586 912
Net income $5,006 $4,509 $5,928 $4,652 $14,044
Dividends on preferred stock (194) (197) (196) (195) (192)
Net income available to common stockholders $4,812 $4,312 $5,732 $4,457 $13,852

Loans held for investment summarized as of:

March 31, December 31, September 30, June 30, March 31,
(Dollars in thousands) 2016 2015 2015 2015 2015
Commercial real estate $293,485 $291,819 $247,175 $234,090 $236,659
Construction, land development, land 41,622 43,876 52,446 46,743 52,203
1-4 family residential properties 76,973 78,244 77,043 75,588 73,605
Farmland 33,250 33,573 25,784 25,701 24,805
Commercial 509,433 495,356 468,055 454,161 371,614
Factored receivables 199,532 215,088 201,803 199,716 171,452
Consumer 13,530 13,050 10,632 10,993 11,201
Mortgage warehouse 78,015 120,879 102,363 105,687 69,907
Total loans $1,245,840 $1,291,885 $1,185,301 $1,152,679 $1,011,446

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

March 31, December 31, September 30, June 30, March 31,
(Dollars in thousands) 2016 2015 2015 2015 2015
Equipment* $159,755 $148,951 $143,483 $138,018 $118,273
Asset based lending (General)* 85,739 75,134 85,641 64,836 36,511
Asset based lending (Healthcare)* 79,580 80,200 66,832 65,083 59,572
Premium finance 3,506 1,612
Factored receivables 199,532 215,088 201,803 199,716 171,452
Commercial finance $528,112 $520,985 $497,759 $467,653 $385,808
Total loans held for investment $1,245,840 $1,291,885 $1,185,301 $1,152,679 $1,011,446
Commercial finance as a % of total 42% 40% 42% 41% 38%
Community banking as a % of total 58% 60% 58% 59% 62%
* 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:

March 31, December 31, September 30, June 30, March 31,
(Dollars in thousands) 2016 2015 2015 2015 2015
Non-interest bearing demand $160,818 $168,264 $167,931 $164,560 $167,538
Interest bearing demand 227,002 238,833 206,603 228,909 231,718
Individual retirement accounts 63,265 60,971 58,619 56,285 55,773
Money market 111,578 112,214 117,888 116,019 120,001
Savings 77,969 74,759 72,244 73,016 74,236
Certificates of deposit 569,820 543,909 526,732 500,451 474,413
Brokered deposits 49,941 50,000 50,019 50,019 50,000
Total deposits $1,260,393 $1,248,950 $1,200,036 $1,189,259 $1,173,679

Net interest margin summarized for the three months ended:

March 31, 2016 December 31, 2015
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
Interest earning assets:
Interest earning cash balances $129,232 $208 0.65% $122,626 $122 0.39%
Taxable securities 170,695 758 1.79% 156,906 665 1.68%
Tax exempt securities 1,135 7 2.48% 2,135 14 2.60%
FHLB and FRB stock 4,269 10 0.94% 3,675 4 0.43%
Loans 1,226,564 23,910 7.84% 1,189,142 24,476 8.17%
Total interest earning assets $1,531,895 $24,893 6.54% $1,474,484 $25,281 6.80%
Non-interest earning assets:
Other assets 150,745 150,407
Total assets $1,682,640 $1,624,891
Interest bearing liabilities:
Deposits:
Interest bearing demand $220,841 $57 0.10% $227,695 $40 0.07%
Individual retirement accounts 61,912 191 1.24% 60,492 189 1.24%
Money market 112,226 65 0.23% 114,524 67 0.23%
Savings 76,551 10 0.05% 73,117 9 0.05%
Certificates of deposit 561,675 1,545 1.11% 541,843 1,475 1.08%
Brokered deposits 49,997 125 1.01% 49,459 125 1.00%
Total deposits 1,083,202 1,993 0.74% 1,067,130 1,905 0.71%
Junior subordinated debentures 24,714 302 4.91% 24,645 288 4.64%
Other borrowings 131,428 109 0.33% 78,198 38 0.19%
Total interest bearing liabilities $1,239,344 $2,404 0.78% $1,169,973 $2,231 0.76%
Non-interest bearing liabilities and equity:
Non-interest bearing demand deposits 160,378 171,262
Other liabilities 10,578 15,752
Total equity 272,340 267,904
Total liabilities and equity $1,682,640 $1,624,891
Net interest income $22,489 $23,050
Interest spread 5.76% 6.04%
Net interest margin 5.90% 6.20%

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) 2016 2015 2015 2015 2015
Net income $5,006 $4,509 $5,928 $4,652 $14,044
Less: bargain purchase gain, non-taxable 900 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 $5,006 $3,609 $4,220 $4,652 $2,636
Dividends on preferred stock (194) (197) (196) (195) (192)
Adjusted net income available to common stockholders $4,812 $3,412 $4,024 $4,457 $2,444
Weighted average shares outstanding - diluted 17,981,276 17,916,251 18,587,821 17,813,825 18,428,663
Less: adjusted effects of assumed Preferred Stock conversion 676,351 676,351
Adjusted weighted average shares outstanding - diluted 17,981,276 17,916,251 17,911,470 17,813,825 17,752,312
Adjusted diluted earnings per common share $0.27 $0.19 $0.22 $0.25 $0.14
Net income available to common stockholders $4,812 $4,312 $5,732 $4,457 $13,852
Average tangible common equity 235,192 229,636 222,884 215,846 205,204
Return on average tangible common equity 8.23% 7.45% 10.20% 8.28% 27.38%
Efficiency ratio:
Net interest income $22,489 $23,050 $23,231 $24,645 $19,725
Non-interest income 4,981 5,571 6,298 4,769 16,659
Operating revenue 27,470 28,621 29,529 29,414 36,384
Less: bargain purchase gain 900 1,708 12,509
Less: escrow recovery from Doral Healthcare Finance 300
Adjusted operating revenue $27,470 $27,721 $27,821 $29,414 $23,575
Total non-interest expenses $20,078 $20,902 $20,545 $19,635 $20,783
Less: merger and acquisition expenses 243
Less: incremental bonus related to acquisition 1,750
Adjusted non-interest expenses $20,078 $20,902 $20,545 $19,635 $18,790
Efficiency ratio 73.09% 75.40% 73.85% 66.75% 79.70%
Net non-interest expense to average assets ratio:
Total non-interest expenses $20,078 $20,902 $20,545 $19,635 $20,783
Less: merger and acquisition expenses 243
Less: incremental bonus related to acquisition 1,750
Adjusted non-interest expense $20,078 $20,902 $20,545 $19,635 $18,790
Total non-interest income $4,981 $5,571 $6,298 $4,769 $16,659
Less: bargain purchase gain 900 1,708 12,509
Less: escrow recovery from Doral Healthcare Finance 300
Adjusted non-interest income $4,981 $4,671 $4,590 $4,769 $3,850
Adjusted net non-interest expenses $15,097 $16,231 $15,955 $14,866 $14,940
Average total assets $1,682,640 $1,624,891 $1,565,698 $1,511,045 $1,449,791
Net non-interest expense to average assets ratio 3.61% 3.96% 4.04% 3.95% 4.18%


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) 2016 2015 2015 2015 2015
Reported yield on loans 7.84% 8.17% 8.34% 9.49% 8.50%
Effect of accretion income on acquired loans (0.37%) (0.33%) (0.38%) (0.53%) (0.46%)
Adjusted yield on loans 7.47% 7.84% 7.96% 8.96% 8.04%
Reported net interest margin 5.90% 6.20% 6.45% 7.20% 6.11%
Effect of accretion income on acquired loans (0.29%) (0.26%) (0.31%) (0.42%) (0.35%)
Adjusted net interest margin 5.61% 5.94% 6.14% 6.78% 5.76%
Total stockholders' equity $274,114 $268,038 $263,919 $257,479 $252,677
Less: Preferred stock liquidation preference 9,746 9,746 9,746 9,746 9,746
Total common stockholders' equity 264,368 258,292 254,173 247,733 242,931
Less: Goodwill and other intangibles 26,877 27,854 28,995 30,174 30,211
Tangible common stockholders' equity $237,491 $230,438 $225,178 $217,559 $212,720
Common shares outstanding 18,015,423 18,018,200 18,040,072 18,041,072 17,963,783
Tangible book value per share $13.18 $12.79 $12.48 $12.06 $11.84
Total assets at end of period $1,687,795 $1,691,313 $1,581,463 $1,529,259 $1,472,743
Less: Goodwill and other intangibles 26,877 27,854 28,995 30,174 30,211
Adjusted total assets at period end $1,660,918 $1,663,459 $1,552,468 $1,499,085 $1,442,532
Tangible common stockholders' equity ratio 14.30% 13.85% 14.50% 14.51% 14.75%

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) Adjusted to exclude material gains and expenses related to merger and acquisition-related activities, net of tax where applicable.

3) Asset quality ratios exclude loans held for sale.

4) Current quarter ratios are preliminary.


Investor Relations: Luke Wyse Vice President, Finance & Investor Relations lwyse@triumphllc.com 214-365-6936 Media Contact: Zachary Reed Manager, Marketing & Communication zreed@triumphllc.com 214-365-1931

Source:Triumph Bancorp, Inc.