×

Triumph Bancorp Reports Second Quarter Net Income to Common Stockholders of $4.4 Million

DALLAS, July 26, 2016 (GLOBE NEWSWIRE) -- Triumph Bancorp, Inc. (NASDAQ:TBK) today announced earnings and operating results for the second 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 Second Quarter Highlights

  • For the second quarter of 2016, net income was $4.6 million and net income available to common stockholders was $4.4 million, compared to net income of $5.0 million and net income available to common stockholders of $4.8 million for the quarter ended March 31, 2016.

  • Diluted earnings per share were $0.25 for the quarter ended June 30, 2016, compared to $0.27 for the quarter ended March 31, 2016.

  • For the quarter ended June 30, 2016, our annualized return on average common equity and return on average assets were 6.64% and 1.07%, respectively, compared to an annualized return on average common equity and return on average assets of 7.37% and 1.20%, respectively, for the quarter ended March 31, 2016. Our ratio of tangible common stockholders’ equity to tangible assets was 13.88% as of June 30, 2016.

  • Net interest margin (“NIM”) was 6.53% for the quarter ended June 30, 2016, compared to 5.90% for the quarter ended March 31, 2016.

  • Total loans held for investment increased $164.7 million or 13.2% to $1.411 billion at June 30, 2016.

Balance Sheet

Average loans outstanding for the second quarter of 2016 were $1.286 billion, an increase of $59.6 million, or 4.9%, from the average balance for the quarter ended March 31, 2016. Total loans held for investment were $1.411 billion at June 30, 2016, an increase of $164.7 million or 13.2% from $1.246 billion at March 31, 2016. Our commercial finance loan portfolio totaled $606.9 million as of June 30, 2016, an increase of $78.8 million or 14.9% in the second quarter.

Total deposits were $1.275 billion at June 30, 2016, an increase of $14.8 million or 1.2% for the second quarter of 2016. Non-interest-bearing deposits accounted for 13% of total deposits and non-time deposits accounted for 47% of total deposits. The average cost of our total funds was 0.68% for the quarter ended June 30, 2016 compared to 0.69% for the quarter ended March 31, 2016, on an annualized basis.

Net Interest Income

We earned net interest income for the quarter ended June 30, 2016 of $25.9 million compared to $22.5 million for the quarter ended March 31, 2016. Net interest income for the quarter ended June 30, 2016 included $1.2 million of additional loan discount accretion associated with the payoff of a purchased credit impaired loan in excess of the carrying amount. Yields on loans for the quarter ended June 30, 2016 were up 66 bps from the prior quarter to 8.50% (up 34 bps from the prior quarter to 7.81% adjusted to exclude loan discount accretion). NIM adjusted to exclude loan discount accretion was 5.98% for the quarter ended June 30, 2016 compared to 5.61% for the quarter ended March 31, 2016.

Asset Quality

Non-performing assets decreased 12 bps from March 31, 2016 to June 30, 2016 to 1.60% of total assets. The ratio of past due to total loans decreased to 2.80% at June 30, 2016 from 3.61% at March 31, 2016. We recorded net charge-offs of $0.3 million for the quarter ended June 30, 2016 compared to net recoveries of $0.04 million for the quarter ended March 31, 2016. We recorded a provision for loan losses of $1.9 million for the quarter ended June 30, 2016 compared to a negative provision of $0.5 million for the quarter ended March 31, 2016. From March 31, 2016 to June 30, 2016, our allowance for loan and lease losses (“ALLL”) increased from $12.1 million or 0.97% of total loans to $13.8 million or 0.98% of total loans. The increase in provision for loan losses and ALLL for the quarter ended June 30, 2016 was primarily due to growth in our loan portfolio during the period.

Non-interest Income and Expense

We earned non-interest income for the quarter ended June 30, 2016 of $3.7 million compared to $5.0 million for the quarter ended March 31, 2016. Non-interest income for the quarter ended June 30, 2016 was reduced by a $1.2 million OREO write-down related to a branch facility previously transferred to OREO that is no longer being actively operated.

For the quarter ended June 30, 2016, non-interest expense totaled $20.3 million, compared to $20.1 million for the quarter ended March 31, 2016.

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 Wednesday, July 27, 2016.

To participate in the live conference call, please dial 1 (855) 779-1042 (U.S. and Canada) and enter Conference ID # 44375654. 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/yypc775y. 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
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
Financial Highlights (Dollars in thousands):
Total assets $1,783,395 $1,687,795 $1,691,313 $1,581,463 $1,529,259
Loans held for investment $1,410,518 $1,245,840 $1,291,885 $1,185,301 $1,152,679
Deposits $1,275,154 $1,260,393 $1,248,950 $1,200,036 $1,189,259
Net income available to common stockholders $4,431 $4,812 $4,312 $5,732 $4,457
Performance Ratios - Annualized:
Return on average assets 1.07% 1.20% 1.10% 1.50% 1.23%
Return on average common equity (1) 6.64% 7.37% 6.63% 9.00% 7.27%
Return on average tangible common equity (1) 7.37% 8.23% 7.45% 10.20% 8.28%
Return on average total equity 6.69% 7.39% 6.68% 8.96% 7.30%
Yield on loans 8.50% 7.84% 8.17% 8.34% 9.49%
Adjusted yield on loans (1) 7.81% 7.47% 7.84% 7.96% 8.96%
Cost of interest bearing deposits 0.72% 0.74% 0.71% 0.69% 0.65%
Cost of total deposits 0.63% 0.64% 0.61% 0.59% 0.56%
Cost of total funds 0.68% 0.69% 0.66% 0.64% 0.63%
Net interest margin (1) 6.53% 5.90% 6.20% 6.45% 7.20%
Adjusted net interest margin (1) 5.98% 5.61% 5.94% 6.14% 6.78%
Net non-interest expense to average assets (1)(2) 3.85% 3.61% 3.96% 4.04% 3.95%
Efficiency ratio (1)(2) 68.74% 73.09% 75.40% 73.85% 66.75%
Asset Quality:(3)
Past due to total loans 2.80% 3.61% 2.41% 2.14% 2.33%
Non-performing loans to total loans 1.56% 1.70% 1.03% 0.97% 1.12%
Non-performing assets to total assets 1.60% 1.72% 1.10% 1.12% 1.26%
ALLL to non-performing loans 62.60% 56.96% 94.10% 100.00% 88.51%
ALLL to total loans 0.98% 0.97% 0.97% 0.97% 0.99%
Net charge-offs to average loans 0.02% 0.00% 0.01% 0.01% 0.03%
Capital:
Tier 1 capital to average assets(4) 16.02% 16.24% 16.56% 16.87% 17.01%
Tier 1 capital to risk-weighted assets(4) 17.15% 18.79% 18.23% 19.34% 19.16%
Common equity tier 1 capital to risk-weighted assets(4) 15.20% 16.62% 16.23% 17.18% 16.98%
Total capital to risk-weighted assets(4) 18.02% 19.65% 19.11% 20.21% 20.04%
Total equity to total assets 15.69% 16.24% 15.85% 16.69% 16.84%
Tangible common stockholders' equity to tangible assets 13.88% 14.30% 13.85% 14.50% 14.51%
Per Share Amounts:
Book value per share $14.91 $14.67 $14.34 $14.09 $13.73
Tangible book value per share (1) $13.47 $13.18 $12.79 $12.48 $12.06
Basic earnings per common share $0.25 $0.27 $0.24 $0.32 $0.25
Diluted earnings per common share $0.25 $0.27 $0.24 $0.32 $0.25
Adjusted diluted earnings per common share(1)(2) $0.25 $0.27 $0.19 $0.22 $0.25
Shares outstanding end of period 18,107,493 18,015,423 18,018,200 18,040,072 18,041,072


Unaudited consolidated balance sheet as of:

June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2016 2016 2015 2015 2015
ASSETS
Total cash and cash equivalents $61,750 $123,715 $105,277 $115,783 $99,714
Securities - available for sale 159,790 161,517 163,169 156,820 158,693
Securities - held to maturity 27,502 25,796 747 746
Loans held for sale 3,043 1,341 2,174 4,096
Loans held for investment 1,410,518 1,245,840 1,291,885 1,185,301 1,152,679
Allowance for loan and lease losses (13,772) (12,093) (12,567) (11,544) (11,462)
Loans, net 1,396,746 1,233,747 1,279,318 1,173,757 1,141,217
FHLB and FRB stock 6,368 4,234 3,818 7,992 5,707
Premises and equipment, net 19,629 19,934 22,227 21,807 21,677
Other real estate owned ("OREO"), net 6,074 7,478 5,177 6,201 6,322
Goodwill and intangible assets, net 26,160 26,877 27,854 28,995 30,174
Bank-owned life insurance 29,786 29,658 29,535 29,406 29,295
Deferred tax asset, net 15,042 15,240 15,945 15,838 15,582
Other assets 34,548 36,556 37,652 21,943 16,036
Total assets $1,783,395 $1,687,795 $1,691,313 $1,581,463 $1,529,259
LIABILITIES
Non-interest bearing deposits $170,834 $160,818 $168,264 $167,931 $164,560
Interest bearing deposits 1,104,320 1,099,575 1,080,686 1,032,105 1,024,699
Total deposits 1,275,154 1,260,393 1,248,950 1,200,036 1,189,259
Customer repurchase agreements 13,635 9,641 9,317 15,584 13,011
Federal Home Loan Bank advances 180,500 110,000 130,000 61,000 19,000
Junior subordinated debentures 24,823 24,754 24,687 24,620 24,553
Other liabilities 9,520 8,893 10,321 16,304 25,957
Total liabilities 1,503,632 1,413,681 1,423,275 1,317,544 1,271,780
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 182 181 181 181 181
Additional paid-in-capital 195,711 194,687 194,297 193,465 192,605
Treasury stock, at cost (741) (597) (560) (184) (170)
Retained earnings 73,340 68,909 64,097 59,785 54,053
Accumulated other comprehensive income 1,525 1,188 277 926 1,064
Total equity 279,763 274,114 268,038 263,919 257,479
Total liabilities and equity $1,783,395 $1,687,795 $1,691,313 $1,581,463 $1,529,259


Unaudited consolidated statement of income for the three months ended:

June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2016 2016 2015 2015 2015
Interest income:
Loans, including fees $18,547 $16,088 $15,524 $15,716 $17,158
Factored receivables, including fees 8,639 7,822 8,952 8,829 8,654
Taxable securities 965 768 669 649 659
Tax exempt securities 6 7 14 17 16
Cash deposits 197 208 122 92 110
Total interest income 28,354 24,893 25,281 25,303 26,597
Interest expense:
Deposits 2,020 1,993 1,905 1,764 1,667
Junior subordinated debentures 312 302 288 283 278
Other borrowings 115 109 38 25 7
Total interest expense 2,447 2,404 2,231 2,072 1,952
Net interest income 25,907 22,489 23,050 23,231 24,645
Provision for loan losses 1,939 (511) 1,178 165 2,541
Net interest income after provision for loan losses 23,968 23,000 21,872 23,066 22,104
Non-interest income:
Service charges on deposits 695 659 744 710 666
Card income 577 546 559 574 578
Net OREO gains/(losses) and valuation adjustments (1,204) (11) (128) (58) 52
Net gains on sale of securities 5 2 15 242
Net gains on sale of loans 4 12 234 363 491
Fee income 504 534 465 542 502
Bargain purchase gain 900 1,708
Asset management fees 1,605 1,629 1,670 1,744 1,274
Other 1,487 1,607 1,125 700 964
Total non-interest income 3,668 4,981 5,571 6,298 4,769
Non-interest expense:
Salaries and employee benefits 12,229 12,252 12,448 12,416 12,042
Occupancy, furniture and equipment 1,534 1,493 1,546 1,575 1,555
FDIC insurance and other regulatory assessments 281 224 300 252 271
Professional fees 1,101 1,073 906 1,344 852
Amortization of intangible assets 717 977 1,141 1,179 895
Advertising and promotion 628 519 374 618 526
Communications and technology 1,263 1,432 1,596 951 927
Other 2,578 2,108 2,591 2,210 2,567
Total non-interest expense 20,331 20,078 20,902 20,545 19,635
Net income before income tax 7,305 7,903 6,541 8,819 7,238
Income tax expense 2,679 2,897 2,032 2,891 2,586
Net income $4,626 $5,006 $4,509 $5,928 $4,652
Dividends on preferred stock (195) (194) (197) (196) (195)
Net income available to common stockholders $4,431 $4,812 $4,312 $5,732 $4,457


Loans held for investment summarized as of:

June 30, March 31, December 31, September 30, June 30,
(Dollars in thousands) 2016 2016 2015 2015 2015
Commercial real estate $298,991 $293,485 $291,819 $247,175 $234,090
Construction, land development, land 36,498 41,622 43,876 52,446 46,743
1-4 family residential properties 74,121 76,973 78,244 77,043 75,588
Farmland 35,795 33,250 33,573 25,784 25,701
Commercial 574,508 509,433 495,356 468,055 454,161
Factored receivables 237,520 199,532 215,088 201,803 199,716
Consumer 17,339 13,530 13,050 10,632 10,993
Mortgage warehouse 135,746 78,015 120,879 102,363 105,687
Total loans $1,410,518 $1,245,840 $1,291,885 $1,185,301 $1,152,679


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) 2016 2016 2015 2015 2015
Equipment* $167,000 $159,755 $148,951 $143,483 $138,018
Asset based lending (General)* 114,632 85,739 75,134 85,641 64,836
Asset based lending (Healthcare)* 81,664 79,580 80,200 66,832 65,083
Premium finance 6,117 3,506 1,612
Factored receivables 237,520 199,532 215,088 201,803 199,716
Commercial finance $606,933 $528,112 $520,985 $497,759 $467,653
Total loans held for investment $1,410,518 $1,245,840 $1,291,885 $1,185,301 $1,152,679
Commercial finance as a % of total 43% 42% 40% 42% 41%
Community banking as a % of total 57% 58% 60% 58% 59%

* 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) 2016 2016 2015 2015 2015
Non-interest bearing demand $170,834 $160,818 $168,264 $167,931 $164,560
Interest bearing demand 235,877 227,002 238,833 206,603 228,909
Individual retirement accounts 64,204 63,265 60,971 58,619 56,285
Money market 120,929 111,578 112,214 117,888 116,019
Savings 77,625 77,969 74,759 72,244 73,016
Certificates of deposit 555,710 569,820 543,909 526,732 500,451
Brokered deposits 49,975 49,941 50,000 50,019 50,019
Total deposits $1,275,154 $1,260,393 $1,248,950 $1,200,036 $1,189,259


Net interest margin summarized for the three months ended:

June 30, 2016 March 31, 2016
Average Average Average Average
(Dollars in thousands) Balance Interest Rate Balance Interest Rate
Interest earning assets:
Interest earning cash balances $120,088 $197 0.66% $129,232 $208 0.65%
Taxable securities 184,010 952 2.08% 170,695 758 1.79%
Tax exempt securities 1,063 6 2.27% 1,135 7 2.48%
FHLB stock 4,748 13 1.10% 4,269 10 0.94%
Loans 1,286,159 27,186 8.50% 1,226,564 23,910 7.84%
Total interest earning assets $1,596,068 $28,354 7.15% $1,531,895 $24,893 6.54%
Non-interest earning assets:
Other assets 146,874 150,745
Total assets $1,742,942 $1,682,640
Interest bearing liabilities:
Deposits:
Interest bearing demand $242,862 $59 0.10% $220,841 $57 0.10%
Individual retirement accounts 64,075 197 1.24% 61,912 191 1.24%
Money market 122,670 69 0.23% 112,226 65 0.23%
Savings 78,795 10 0.05% 76,551 10 0.05%
Certificates of deposit 565,600 1,560 1.11% 561,675 1,545 1.11%
Brokered deposits 49,950 125 1.01% 49,997 125 1.01%
Total deposits 1,123,952 2,020 0.72% 1,083,202 1,993 0.74%
Junior subordinated debentures 24,788 312 5.06% 24,714 302 4.91%
Other borrowings 139,601 115 0.33% 131,428 109 0.33%
Total interest bearing liabilities $1,288,341 $2,447 0.76% $1,239,344 $2,404 0.78%
Non-interest bearing liabilities and equity:
Non-interest bearing demand deposits 166,863 160,378
Other liabilities 9,770 10,578
Total equity 277,968 272,340
Total liabilities and equity $1,742,942 $1,682,640
Net interest income $25,907 $22,489
Interest spread 6.39% 5.76%
Net interest margin 6.53% 5.90%


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) 2016 2016 2015 2015 2015
Net income $4,626 $5,006 $4,509 $5,928 $4,652
Less: bargain purchase gain, non-taxable 900 1,708
Adjusted net income $4,626 $5,006 $3,609 $4,220 $4,652
Dividends on preferred stock (195) (194) (197) (196) (195)
Adjusted net income available to common stockholders $4,431 $4,812 $3,412 $4,024 $4,457
Weighted average shares outstanding - diluted 18,042,585 17,981,276 17,916,251 18,587,821 17,813,825
Less: adjusted effects of assumed Preferred Stock conversion 676,351
Adjusted weighted average shares outstanding - diluted 18,042,585 17,981,276 17,916,251 17,911,470 17,813,825
Adjusted diluted earnings per common share $0.25 $0.27 $0.19 $0.22 $0.25
Net income available to common stockholders $4,431 $4,812 $4,312 $5,732 $4,457
Average tangible common equity 241,666 235,192 229,636 222,884 215,846
Return on average tangible common equity 7.37% 8.23% 7.45% 10.20% 8.28%
Efficiency ratio:
Net interest income $25,907 $22,489 $23,050 $23,231 $24,645
Non-interest income 3,668 4,981 5,571 6,298 4,769
Operating revenue 29,575 27,470 28,621 29,529 29,414
Less: bargain purchase gain 900 1,708
Adjusted operating revenue $29,575 $27,470 $27,721 $27,821 $29,414
Total non-interest expenses $20,331 $20,078 $20,902 $20,545 $19,635
Efficiency ratio 68.74% 73.09% 75.40% 73.85% 66.75%
Net non-interest expense to average assets ratio:
Total non-interest expenses $20,331 $20,078 $20,902 $20,545 $19,635
Total non-interest income $3,668 $4,981 $5,571 $6,298 $4,769
Less: bargain purchase gain 900 1,708
Adjusted non-interest income $3,668 $4,981 $4,671 $4,590 $4,769
Adjusted net non-interest expenses $16,663 $15,097 $16,231 $15,955 $14,866
Average total assets $1,742,942 $1,682,640 $1,624,891 $1,565,698 $1,511,045
Net non-interest expense to average assets ratio 3.85% 3.61% 3.96% 4.04% 3.95%


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) 2016 2016 2015 2015 2015
Reported yield on loans 8.50% 7.84% 8.17% 8.34% 9.49%
Effect of accretion income on acquired loans (0.69%) (0.37%) (0.33%) (0.38%) (0.53%)
Adjusted yield on loans 7.81% 7.47% 7.84% 7.96% 8.96%
Reported net interest margin 6.53% 5.90% 6.20% 6.45% 7.20%
Effect of accretion income on acquired loans (0.55%) (0.29%) (0.26%) (0.31%) (0.42%)
Adjusted net interest margin 5.98% 5.61% 5.94% 6.14% 6.78%
Total stockholders' equity $279,763 $274,114 $268,038 $263,919 $257,479
Less: Preferred stock liquidation preference 9,746 9,746 9,746 9,746 9,746
Total common stockholders' equity 270,017 264,368 258,292 254,173 247,733
Less: Goodwill and other intangibles 26,160 26,877 27,854 28,995 30,174
Tangible common stockholders' equity $243,857 $237,491 $230,438 $225,178 $217,559
Common shares outstanding 18,107,493 18,015,423 18,018,200 18,040,072 18,041,072
Tangible book value per share $13.47 $13.18 $12.79 $12.48 $12.06
Total assets at end of period $1,783,395 $1,687,795 $1,691,313 $1,581,463 $1,529,259
Less: Goodwill and other intangibles 26,160 26,877 27,854 28,995 30,174
Adjusted total assets at period end $1,757,235 $1,660,918 $1,663,459 $1,552,468 $1,499,085
Tangible common stockholders' equity ratio 13.88% 14.30% 13.85% 14.50% 14.51%

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: Amanda Tavackoli Vice President, Marketing & Communication atavackoli@triumphllc.com 214-365-6930

Source:Triumph Bancorp, Inc.