DALLAS, Feb. 03, 2016 (GLOBE NEWSWIRE) -- Triumph Bancorp, Inc. (NASDAQ:TBK) today announced earnings and operating results for the fourth quarter and full year of 2015.

"As we complete our first full year as a public company, our earnings and operating results demonstrate the continued execution of our strategy and we are well positioned to create additional value for our investors, team members, and customers in 2016 ," 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.

2015 Fourth Quarter and Annual Highlights
  • For the fourth quarter of 2015, net income was $4.5 million and net income available to common stockholders was $4.3 million, compared to net income of $5.9 million and net income available to common stockholders of $5.7 million for the quarter ended September 30, 2015.
  • Fully diluted earnings per share were $0.24 for the quarter ended December 31, 2015, compared to $0.32 for the quarter ended September 30, 2015.
  • For the quarter ended December 31, 2015, our annualized return on average common equity and return on average assets were 6.63% and 1.10%, respectively, compared to an annualized return on average common equity and return on average assets of 9.00% and 1.50%, respectively, for the quarter ended September 30, 2015.  Our ratio of tangible common stockholders' equity to tangible assets was 13.85% as of December 31, 2015.
  • Net interest margin ("NIM") was 6.20% for the quarter ended December 31, 2015.
  • For the year ended December 31, 2015, net income was $29.1 million and net income available to common stockholders was $28.4 million, compared to net income of $19.8 million and net income to common stockholders of $16.9 million for the year ended December 31, 2014.  Fully diluted earnings per share were $1.57 for the year ended December 31, 2015, compared to $1.52 for the same period in 2014.  Return on average common equity was 11.44% and return on average assets was 1.89% for the year ended December 31, 2015, compared to 11.61% and 1.46%, respectively, for the year ended December 31, 2014.  Net interest margin was 6.49% for the year ended December 31, 2015.

Balance Sheet

Total loans held for investment were $1.292 billion at December 31, 2015, an increase of $286.0 million or 28.4% for our full 2015 fiscal year, and $106.6 million or 9.0% during the fourth quarter.  Our commercial finance loan portfolio totaled $521.0 million as of December 31, 2015, an increase of $145.6 million or 38.8% in 2015, and $23.2 million or 4.7% in the fourth quarter.

Total deposits were $1.249 billion at December 31, 2015, an increase of $83.7 million or 7.2% for our full 2015 fiscal year, and $48.9 million or 4.1% for the fourth quarter of 2015.  Non-interest-bearing deposits accounted for 13% of total deposits and non-time deposits accounted for 48% of total deposits. The average cost of our total funds was 0.66% for the quarter ended December 31, 2015 compared to 0.64% for the quarter ended September 30, 2015, on an annualized basis.

Net Interest Income

We earned net interest income for the quarter ended December 31, 2015 of $23.1 million compared to $23.2 million for the quarter ended September 30, 2015.  Yields on loans for the quarter ended December 31, 2015 were down 17 bps from the prior quarter to 8.17% (down 12 basis points from the prior quarter to 7.84% adjusted to exclude loan discount accretion).   NIM decreased 25 bps to 6.20% for the quarter ended December 31, 2015 from 6.45% for the quarter ended September 30, 2015. NIM adjusted to exclude loan discount accretion was 5.94% for the quarter ended December 31, 2015 compared to 6.14% for the quarter ended September 30, 2015.  We earned net interest income of $90.7 million for the full year ended December 31, 2015, compared to $80.5 million for the year ended December 31, 2014. 

Asset Quality

Non-performing assets improved 2 bps from September 30, 2015 to December 31, 2015 to 1.10% of total assets.  The ratio of past due to total loans increased to 2.41% at December 31, 2015 from 2.14% at September 30, 2015.  We experienced net charge-offs of $0.2 million for the quarter ended December 31, 2015 compared to net charge-offs of $0.1 million for the quarter ended September 30, 2015.  Our provision for loan losses was $1.2 million for the quarter ended December 31, 2015 compared to $0.2 million for the quarter ended September 30, 2015. From September 30, 2015 to December 31, 2015, our allowance for loan and lease losses ("ALLL") increased from $11.5 million or 0.97% of total loans to $12.6 million or 0.97% of total loans.

Non-interest Income and Expense

We earned non-interest income for the quarter ended December 31, 2015 of $5.6 million compared to $6.3 million for the quarter ended September 30, 2015.  Non-interest income for the quarter ended December 31, 2015 and the quarter ended September 30, 2015 included net benefits of $0.9 million and $1.7 million, respectively, recorded to increase the bargain purchase gain realized on the acquisition of Doral Money, Inc., bringing the final overall gain on this transaction to $15.1 million.  We earned non-interest income of $33.3 million for the full year ended December 31, 2015, compared to $24.8 million for the year ended December 31, 2014. 

For the quarter ended December 31, 2015, non-interest expense totaled $20.9 million, compared to $20.5 million for the quarter ended September 30, 2015. Non-interest expense for the quarter ended December 31, 2015 included $0.7 million of costs associated with our core operating system conversion.  We incurred non-interest expense of $81.9 million for the year ended December 31, 2015, compared to $69.2 million for the year ended December 31, 2014. 

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, February 4, 2016.

To participate in the live conference call, please dial 1 (855) 779-1042 (U.S. and Canada) and enter Conference ID # 26242108.  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/zqu95kmd. 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  
    December 31,     September 30,     June 30,     March 31,     December 31,  
    2015     2015     2015     2015     2014  
Financial Highlights (Dollars in thousands):                                        
Total assets   $ 1,691,313     $ 1,581,463     $ 1,529,259     $ 1,472,743     $ 1,447,898  
Loans held for investment   $ 1,291,885     $ 1,185,301     $ 1,152,679     $ 1,011,446     $ 1,005,878  
Deposits   $ 1,248,950     $ 1,200,036     $ 1,189,259     $ 1,173,679     $ 1,165,229  
Net income available to common stockholders   $ 4,312     $ 5,732     $ 4,457     $ 13,852     $ 2,021  
                                         
Performance Ratios - Annualized:                                        
Return on average assets     1.10 %     1.50 %     1.23 %     3.93 %     0.78 %
Return on average common equity (1)     6.63 %     9.00 %     7.27 %     23.95 %     4.30 %
Return on average tangible common equity (1)     7.45 %     10.20 %     8.28 %     27.38 %     5.11 %
Return on average total equity     6.68 %     8.96 %     7.30 %     23.31 %     5.02 %
Yield on loans     8.17 %     8.34 %     9.49 %     8.50 %     8.98 %
Adjusted yield on loans (1)     7.84 %     7.96 %     8.96 %     8.04 %     8.29 %
Cost of interest bearing deposits     0.71 %     0.69 %     0.65 %     0.64 %     0.61 %
Cost of total deposits     0.61 %     0.59 %     0.56 %     0.55 %     0.52 %
Cost of total funds     0.66 %     0.64 %     0.63 %     0.63 %     0.65 %
Net interest margin (1)     6.20 %     6.45 %     7.20 %     6.11 %     6.58 %
Adjusted net interest margin (1)     5.94 %     6.14 %     6.78 %     5.76 %     6.05 %
Net non-interest expense to average assets (1)(2)     3.96 %     4.04 %     3.95 %     4.18 %     4.44 %
Efficiency ratio (1)(2)     75.40 %     73.85 %     66.75 %     79.70 %     78.58 %
                                         
Asset Quality: (3)                                        
Past due to total loans     2.41 %     2.14 %     2.33 %     2.91 %     2.57 %
Non-performing loans  to total loans     1.03 %     0.97 %     1.12 %     1.66 %     1.66 %
Non-performing assets to total assets     1.10 %     1.12 %     1.26 %     1.62 %     1.73 %
ALLL to non-performing loans     94.10 %     100.00 %     88.51 %     55.28 %     53.02 %
ALLL to total loans     0.97 %     0.97 %     0.99 %     0.92 %     0.88 %
Net charge-offs to average loans     0.01 %     0.01 %     0.03 %     0.02 %     0.03 %
                                         
Capital: (4)                                        
Tier 1 capital to average assets     16.56 %     16.87 %     17.01 %     17.35 %     15.92 %
Tier 1 capital to risk-weighted assets     18.16 %     19.34 %     19.16 %     20.72 %     19.56 %
Common equity tier 1 capital to risk-weighted assets     16.17 %     17.18 %     16.98 %     18.33 %   N/A  
Total capital to risk-weighted assets     19.03 %     20.21 %     20.04 %     21.51 %     20.35 %
Total equity to total assets     15.85 %     16.69 %     16.84 %     17.16 %     16.40 %
Tangible common stockholders' equity to tangible assets     13.85 %     14.50 %     14.51 %     14.75 %     14.00 %
                                         
Per Share Amounts:                                        
Book value per share   $ 14.34     $ 14.09     $ 13.73     $ 13.52     $ 12.68  
Tangible book value per share (1)   $ 12.79     $ 12.48     $ 12.06     $ 11.84     $ 11.06  
Basic earnings per common share   $ 0.24     $ 0.32     $ 0.25     $ 0.78     $ 0.14  
Diluted earnings per common share   $ 0.24     $ 0.32     $ 0.25     $ 0.76     $ 0.14  
Adjusted diluted earnings per common share (1)(2)   $ 0.19     $ 0.22     $ 0.25     $ 0.14     $ 0.14  
Shares outstanding end of period     18,018,200       18,040,072       18,041,072       17,963,783       17,963,783  

Unaudited consolidated balance sheet as of:
    December 31,     September 30,     June 30,     March 31,     December 31,  
 (Dollars in thousands)   2015     2015     2015     2015     2014  
ASSETS                                        
Total cash and cash equivalents   $ 105,277     $ 115,783     $ 99,714     $ 178,442     $ 160,888  
Securities - available for sale     163,169       156,820       158,693       161,360       162,024  
Securities - held to maturity           747       746       746       745  
Loans held for sale     1,341       2,174       4,096       3,401       3,288  
Loans held for investment     1,291,885       1,185,301       1,152,679       1,011,446       1,005,878  
Allowance for loan and lease losses     (12,567 )     (11,544 )     (11,462 )     (9,286 )     (8,843 )
Loans, net     1,279,318       1,173,757       1,141,217       1,002,160       997,035  
FHLB and FRB stock     3,818       7,992       5,707       4,466       4,903  
Premises and equipment, net     22,227       21,807       21,677       21,716       21,933  
Other real estate owned ("OREO"), net     5,177       6,201       6,322       6,991       8,423  
Goodwill and intangible assets, net     27,854       28,995       30,174       30,211       29,057  
Bank-owned life insurance     29,535       29,406       29,295       29,193       29,083  
Deferred tax asset, net     15,645       15,838       15,582       14,983       15,956  
Other assets     37,952       21,943       16,036       19,074       14,563  
Total assets   $ 1,691,313     $ 1,581,463     $ 1,529,259     $ 1,472,743     $ 1,447,898  
LIABILITIES                                        
Non-interest bearing deposits   $ 168,264     $ 167,931     $ 164,560     $ 167,538     $ 179,848  
Interest bearing deposits     1,080,686       1,032,105       1,024,699       1,006,141       985,381  
Total deposits     1,248,950       1,200,036       1,189,259       1,173,679       1,165,229  
Customer repurchase agreements     9,317       15,584       13,011       8,666       9,282  
Federal Home Loan Bank advances     130,000       61,000       19,000             3,000  
Junior subordinated debentures     24,687       24,620       24,553       24,487       24,423  
Other liabilities     10,321       16,304       25,957       13,234       8,455  
Total liabilities     1,423,275       1,317,544       1,271,780       1,220,066       1,210,389  
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       180       180  
Additional paid-in-capital     194,297       193,465       192,605       191,745       191,049  
Treasury stock, at cost     (560 )     (184 )     (170 )     (161 )     (161 )
Retained earnings     64,097       59,785       54,053       49,596       35,744  
Accumulated other comprehensive income     277       926       1,064       1,571       951  
Total equity     268,038       263,919       257,479       252,677       237,509  
Total liabilities and equity   $ 1,691,313     $ 1,581,463     $ 1,529,259     $ 1,472,743     $ 1,447,898  

Unaudited consolidated statement of income for the three months ended:

    December 31,     September 30,     June 30,     March 31,     December 31,  
 (Dollars in thousands)   2015     2015     2015     2015     2014  
Interest income:                                        
Loans, including fees   $ 15,524     $ 15,716     $ 17,158     $ 13,239     $ 14,138  
Factored receivables, including fees     8,952       8,829       8,654       7,509       8,367  
Taxable securities     669       649       659       678       644  
Tax exempt securities     14       17       16       12       14  
Cash deposits     122       92       110       141       117  
Total interest income     25,281       25,303       26,597       21,579       23,280  
Interest expense:                                        
Deposits     1,905       1,764       1,667       1,570       1,498  
Senior secured note                             173  
Junior subordinated debentures     288       283       278       272       276  
Other borrowings     38       25       7       12       4  
Total interest expense     2,231       2,072       1,952       1,854       1,951  
Net interest income     23,050       23,231       24,645       19,725       21,329  
Provision for loan losses     1,178       165       2,541       645       1,811  
Net interest income after provision for loan losses     21,872       23,066       22,104       19,080       19,518  
Non-interest income:                                        
Service charges on deposits     744       710       666       612       647  
Card income     559       574       578       523       516  
Net OREO gains/(losses) and valuation adjustments     (128 )     (58 )     52       26       (242 )
Net gains on sale of securities     2       15       242             62  
Net gains on sale of loans     234       363       491       542       437  
Fee income     465       542       502       422       553  
Bargain purchase gain     900       1,708             12,509        
Asset management fees     1,670       1,744       1,274       958       486  
Other     1,125       700       964       1,067       1,262  
Total non-interest income     5,571       6,298       4,769       16,659       3,721  
Non-interest expense:                                        
Salaries and employee benefits     12,448       12,416       12,042       13,269       12,752  
Occupancy, furniture and equipment     1,546       1,575       1,555       1,572       1,429  
FDIC insurance and other regulatory assessments     300       252       271       263       221  
Professional fees     906       1,344       852       1,327       1,146  
Amortization of intangible assets     1,141       1,179       895       764       727  
Advertising and promotion     374       618       526       543       366  
Communications and technology     1,596       951       927       886       961  
Other     2,591       2,210       2,567       2,159       2,083  
Total non-interest expense     20,902       20,545       19,635       20,783       19,685  
Net income before income tax     6,541       8,819       7,238       14,956       3,554  
Income tax expense     2,032       2,891       2,586       912       747  
Net income   $ 4,509     $ 5,928     $ 4,652     $ 14,044     $ 2,807  
Effect of noncontrolling interests and preferred shares     (197 )     (196 )     (195 )     (192 )     (786 )
Net income available to common stockholders   $ 4,312     $ 5,732     $ 4,457     $ 13,852     $ 2,021  

Loans held for investment summarized as of:
    December 31,     September 30,     June 30,     March 31,     December 31,
 (Dollars in thousands)   2015     2015     2015     2015     2014
Commercial real estate   $ 291,819     $ 247,175     $ 234,090     $ 236,659     $ 249,164
Construction, land development, land     43,876       52,446       46,743       52,203       42,914
1-4 family residential properties     78,244       77,043       75,588       73,605       78,738
Farmland     33,573       25,784       25,701       24,805       22,496
Commercial     495,356       468,055       454,161       371,614       364,567
Factored receivables     215,088       201,803       199,716       171,452       180,910
Consumer     13,050       10,632       10,993       11,201       11,941
Mortgage warehouse     120,879       102,363       105,687       69,907       55,148
Total loans   $ 1,291,885     $ 1,185,301     $ 1,152,679     $ 1,011,446     $ 1,005,878

A portion of our total loan portfolio consists of commercial finance products offered on a nationwide basis, as further summarized below:
    December 31,     September 30,     June 30,     March 31,     December 31,  
(Dollars in thousands)   2015     2015     2015     2015     2014  
Equipment*   $ 148,951     $ 143,483     $ 138,018     $ 118,273     $ 106,354  
Asset based lending (General)*     75,134       85,641       64,836       36,511       46,388  
Asset based lending (Healthcare)*     80,200       66,832       65,083       59,572       41,770  
Premium finance     1,612                          
Factored receivables     215,088       201,803       199,716       171,452       180,910  
Commercial finance   $ 520,985     $ 497,759     $ 467,653     $ 385,808     $ 375,422  
                                         
Total loans held for investment   $ 1,291,885     $ 1,185,301     $ 1,152,679     $ 1,011,446     $ 1,005,878  
Commercial finance as a % of total     40 %     42 %     41 %     38 %     37 %
Community banking as a % of total     60 %     58 %     59 %     62 %     63 %

* 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:

    December 31,     September 30,     June 30,     March 31,     December 31,
(Dollars in thousands)   2015     2015     2015     2015     2014
Non-interest bearing demand   $ 168,264     $ 167,931     $ 164,560     $ 167,538     $ 179,848
Interest bearing demand     238,833       206,603       228,909       231,718       236,525
Individual retirement accounts     60,971       58,619       56,285       55,773       55,034
Money market     112,214       117,888       116,019       120,001       117,514
Savings     74,759       72,244       73,016       74,236       70,407
Certificates of deposit     543,909       526,732       500,451       474,413       455,901
Brokered deposits     50,000       50,019       50,019       50,000       50,000
Total deposits   $ 1,248,950     $ 1,200,036     $ 1,189,259     $ 1,173,679     $ 1,165,229

Net interest margin summarized for the three months ended:
    December 31, 2015     September 30, 2015  
    Average             Average     Average             Average  
(Dollars in thousands)   Balance     Interest     Rate     Balance     Interest     Rate  
Interest earning assets:                                                
Interest earning cash balances   $ 122,626     $ 122       0.39 %   $ 96,566     $ 92       0.38 %
Taxable securities     156,906       665       1.68 %     154,254       598       1.54 %
Tax exempt securities     2,135       14       2.60 %     2,554       17       2.64 %
FHLB and FRB stock     3,675       4       0.43 %     6,959       51       2.91 %
Loans     1,189,142       24,476       8.17 %     1,167,670       24,545       8.34 %
Total interest earning assets   $ 1,474,484     $ 25,281       6.80 %   $ 1,428,003     $ 25,303       7.03 %
Non-interest earning assets:                                                
Other assets     150,407                       137,695                  
Total assets   $ 1,624,891                     $ 1,565,698                  
Interest bearing liabilities:                                                
Deposits:                                                
Interest bearing demand   $ 227,695     $ 40       0.07 %   $ 211,823     $ 32       0.06 %
Individual retirement accounts     60,492       189       1.24 %     57,227       177       1.23 %
Money market     114,524       67       0.23 %     116,375       66       0.23 %
Savings     73,117       9       0.05 %     72,617       9       0.05 %
Certificates of deposit     541,843       1,475       1.08 %     509,224       1,354       1.05 %
Brokered deposits     49,459       125       1.00 %     50,002       126       1.00 %
Total deposits     1,067,130       1,905       0.71 %     1,017,268       1,764       0.69 %
Junior subordinated debentures     24,645       288       4.64 %     24,580       283       4.57 %
Short-term borrowings     78,198       38       0.19 %     69,778       25       0.14 %
Total interest bearing liabilities   $ 1,169,973     $ 2,231       0.76 %   $ 1,111,626     $ 2,072       0.74 %
Non-interest bearing liabilities and equity:                                                
Non-interest bearing demand deposits     171,262                       171,887                  
Other liabilities     15,752                       19,841                  
Total equity     267,904                       262,344                  
Total liabilities and equity   $ 1,624,891                     $ 1,565,698                  
Net interest income           $ 23,050                     $ 23,231          
Interest spread                     6.04 %                     6.29 %
Net interest margin                     6.20 %                     6.45 %

Metrics and non-GAAP financial reconciliation:
    As of and for the Three Months Ended  
    December 31,     September 30,     June 30,     March 31,     December 31,  
 (Dollars in thousands, except per share amounts)   2015     2015     2015     2015     2014  
Net income   $ 4,509     $ 5,928     $ 4,652     $ 14,044     $ 2,807  
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   $ 3,609     $ 4,220     $ 4,652     $ 2,636     $ 2,807  
Effect of noncontrolling interests and preferred shares     (197 )     (196 )     (195 )     (192 )     (786 )
Adjusted net income available to common stockholders   $ 3,412     $ 4,024     $ 4,457     $ 2,444     $ 2,021  
                                         
Weighted average shares outstanding - diluted     17,916,251       18,587,821       17,813,825       18,428,663       14,261,717  
Less: adjusted effects of assumed Preferred Stock conversion           676,351             676,351        
Adjusted weighted average shares outstanding - diluted     17,916,251       17,911,470       17,813,825       17,752,312       14,261,717  
Adjusted diluted earnings per common share   $ 0.19     $ 0.22     $ 0.25     $ 0.14     $ 0.14  
                                         
Net income available to common stockholders   $ 4,312     $ 5,732     $ 4,457     $ 13,852     $ 2,021  
Average tangible common equity     229,636       222,884       215,846       205,204       156,888  
Return on average tangible common equity     7.45 %     10.20 %     8.28 %     27.38 %     5.11 %
                                         
Efficiency ratio:                                        
Net interest income   $ 23,050     $ 23,231     $ 24,645     $ 19,725     $ 21,329  
Non-interest income     5,571       6,298       4,769       16,659       3,721  
Operating revenue     28,621       29,529       29,414       36,384       25,050  
Less: bargain purchase gain     900       1,708             12,509        
Less: escrow recovery from Doral Healthcare Finance                       300        
Adjusted operating revenue   $ 27,721     $ 27,821     $ 29,414     $ 23,575     $ 25,050  
Total non-interest expenses   $ 20,902     $ 20,545     $ 19,635     $ 20,783     $ 19,685  
Less: merger and acquisition expenses                       243        
Less: incremental bonus related to acquisition                       1,750        
Adjusted non-interest expenses   $ 20,902     $ 20,545     $ 19,635     $ 18,790     $ 19,685  
Efficiency ratio     75.40 %     73.85 %     66.75 %     79.70 %     78.58 %
                                         
Net non-interest expense to average assets ratio:                                        
Total non-interest expenses   $ 20,902     $ 20,545     $ 19,635     $ 20,783     $ 19,685  
Less: merger and acquisition expenses                       243        
Less: incremental bonus related to acquisition                       1,750        
Adjusted non-interest expense   $ 20,902     $ 20,545     $ 19,635     $ 18,790     $ 19,685  
                                         
Total non-interest income   $ 5,571     $ 6,298     $ 4,769     $ 16,659     $ 3,721  
Less: bargain purchase gain     900       1,708             12,509        
Less: escrow recovery from Doral Healthcare Finance                       300        
Adjusted non-interest income   $ 4,671     $ 4,590     $ 4,769     $ 3,850     $ 3,721  
Adjusted net non-interest expenses   $ 16,231     $ 15,955     $ 14,866     $ 14,940     $ 15,964  
Average total assets   $ 1,624,891     $ 1,565,698     $ 1,511,045     $ 1,449,791     $ 1,427,475  
Net non-interest expense to average assets ratio     3.96 %     4.04 %     3.95 %     4.18 %     4.44 %

    As of and for the Three Months Ended  
    December 31,     September 30,     June 30,     March 31,     December 31,  
 (Dollars in thousands, except per share amounts)   2015     2015     2015     2015     2014  
Reported yield on loans     8.17 %     8.34 %     9.49 %     8.50 %     8.98 %
Effect of accretion income on acquired loans     (0.33 %)     (0.38 %)     (0.53 %)     (0.46 %)     (0.69 %)
Adjusted yield on loans     7.84 %     7.96 %     8.96 %     8.04 %     8.29 %
                                         
Reported net interest margin     6.20 %     6.45 %     7.20 %     6.11 %     6.58 %
Effect of accretion income on acquired loans     (0.26 %)     (0.31 %)     (0.42 %)     (0.35 %)     (0.53 %)
Adjusted net interest margin     5.94 %     6.14 %     6.78 %     5.76 %     6.05 %
                                         
Total stockholders' equity   $ 268,038     $ 263,919     $ 257,479     $ 252,677     $ 237,509  
Less: Preferred stock liquidation preference     9,746       9,746       9,746       9,746       9,746  
Total common stockholders' equity     258,292       254,173       247,733       242,931       227,763  
Less: Goodwill and other intangibles     27,854       28,995       30,174       30,211       29,057  
Tangible common stockholders' equity   $ 230,438     $ 225,178     $ 217,559     $ 212,720     $ 198,706  
Common shares outstanding     18,018,200       18,040,072       18,041,072       17,963,783       17,963,783  
Tangible book value per share   $ 12.79     $ 12.48     $ 12.06     $ 11.84     $ 11.06  
                                         
Total assets at end of period   $ 1,691,313     $ 1,581,463     $ 1,529,259     $ 1,472,743     $ 1,447,898  
Less: Goodwill and other intangibles     27,854       28,995       30,174       30,211       29,057  
Adjusted total assets at period end   $ 1,663,459     $ 1,552,468     $ 1,499,085     $ 1,442,532     $ 1,418,841  
Tangible common stockholders' equity ratio     13.85 %     14.50 %     14.51 %     14.75 %     14.00 %

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 and, beginning January 1, 2015, are calculated under the requirements of Basel III.
Investor Relations:Luke WyseVice President, Finance & Investor Relationslwyse@triumphllc.com214-365-6936Media Contact:Amanda TavackoliVice President, Marketing & Communicationatavackoli@triumphllc.com214-365-6930

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