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Section 1: 8-K (8-K)

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false 0001539638 0001539638 2020-01-21 2020-01-21

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 21, 2020

TRIUMPH BANCORP, INC.

(Exact name of registrant as specified in its charter)

 

Texas

001-36722

20-0477066

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

 

 

12700 Park Central Drive, Suite 1700,

Dallas, Texas

 

75251

(Address of Principal Executive Offices)

 

(Zip Code)

(214) 365-6900

(Registrant’s telephone number, including area code)

 

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2b)

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common stock, par value $0.01 per share

 

TBK

 

NASDAQ Global Select Market

 

 

 

 


Item 2.02. Results of Operations and Financial Condition

On January 21, 2020, Triumph Bancorp, Inc. (the “Company”) issued a press release that announced its 2019 fourth quarter earnings. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. This press release includes certain non-GAAP financial measures. A reconciliation of those measures to the most directly comparable GAAP measures is included as a table in the press release. The information in this Item 2.02, including Exhibit 99.1, shall be considered furnished for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be deemed “filed” for any purpose.

Item 7.01.Regulation FD Disclosure

In addition, this Form 8-K includes a copy of the Company’s presentation to analysts and investors for its quarter ended December 31, 2019, which is attached hereto as Exhibit 99.2. The information in this Item 7.01, including Exhibit 99.2, shall be considered furnished for purposes of the Exchange Act and shall not be deemed “filed” for any purpose.

Forward-Looking Statements

This Current Report on Form 8-K 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: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; 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 acquisitions of First Bancorp of Durango, Inc., Southern Colorado Corp., and the operating assets of Interstate Capital Corporation and certain of its affiliates) and any future acquisitions; changes in management personnel; interest rate risk; concentration of our factoring services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets, or deferred tax assets; 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 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; and increases in our capital requirements.


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 12, 2019.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

 

 

 

Exhibit

Description

99.1

Press release, dated January 21, 2020

99.2

Triumph Bancorp, Inc. Investor Presentation

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)



 

EXHIBIT INDEX

 

 

 

 

 

Exhibit

Description

99.1

Press release, dated January 21, 2020

99.2

Triumph Bancorp, Inc. Investor Presentation

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

 

 

 

 

 

 

 

 

TRIUMPH BANCORP, INC.

 

 

 

 

By:

/s/ Adam D. Nelson

 

 

Name: Adam D. Nelson

Title: Executive Vice President & General Counsel

Date: January 21, 2020

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

tbk-ex991_6.htm

 

Exhibit 99.1

Triumph Bancorp Reports Fourth Quarter Net Income to Common Stockholders of $16.7 Million

DALLAS – January 21, 2020 (GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”) today announced earnings and operating results for the fourth quarter of 2019.

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 press release.

2019 Fourth Quarter Highlights and Recent Developments

 

For the fourth quarter of 2019, net income available to common stockholders was $16.7 million. Diluted earnings per share were $0.66.  

 

Net interest margin (“NIM”) was 5.72% for the quarter ended December 31, 2019.

 

Total loans held for investment decreased $14.9 million, or 0.4%, to $4.195 billion at December 31, 2019. Average loans for the quarter increased $190.7 million, or 4.8%, to $4.134 billion.

 

The total dollar value of invoices purchased by Triumph Business Capital for the quarter ended December 31, 2019 was $1.490 billion with an average invoice size of $1,662. The transportation average invoice size for the quarter was $1,507.

 

For the quarter ended December 31, 2019, TriumphPay processed 442,428 invoices paying 41,222 distinct carriers a total of $474.9 million.

 

During the quarter ended December 31, 2019, we completed a $39.5 million subordinated debt offering.

 

During the quarter ended December 31, 2019, we repurchased 392,557 shares into treasury stock under our stock repurchase program at an average price of $36.69, for a total of $14.4 million. During the year ended December 31, 2019, we have repurchased 2,080,791 shares into treasury stock under our stock repurchase programs at an average price of $30.90, for a total of $64.4 million.

Balance Sheet

Total loans held for investment decreased $14.9 million, or 0.4%, during the fourth quarter to $4.195 billion at December 31, 2019. The community banking portfolio decreased $113.0 million, or 5.1%, to $2.094 billion, the commercial finance portfolio decreased $25.6 million, or 2.0%, to $1.250 billion, and the national lending portfolio increased $123.7 million, or 17.0%, to $850.4 million during the quarter.

Total deposits were $3.790 billion at December 31, 2019, an increase of $92.1 million, or 2.5%, in the fourth quarter of 2019.  Non-interest-bearing deposits accounted for 21% of total deposits and non-time deposits accounted for 59% of total deposits at December 31, 2019.  

Net Interest Income

We earned net interest income for the quarter ended December 31, 2019 of $66.4 million compared to $64.8 million for the quarter ended September 30, 2019.

Yields on loans for the quarter ended December 31, 2019 were down 15 bps from the prior quarter to 7.48%. The average cost of our total deposits was 1.15% for the quarter ended December 31, 2019 compared to 1.19% for the quarter ended September 30, 2019.  

Asset Quality

Non-performing assets were 0.87% of total assets at December 31, 2019 compared to 0.91% of total assets at September 30, 2019.  The ratio of past due to total loans decreased to 2.19% at December 31, 2019 from 2.47% at September 30, 2019. We recorded total net charge-offs of $3.2 million, or 0.08% of average loans, for the quarter ended December 31, 2019 compared to net charge-offs of $0.4 million, or 0.01% of average loans, for the quarter ended September 30, 2019.  

1


 

We recorded a provision for loan losses of $0.4 million for the quarter ended December 31, 2019 compared to a provision of $2.9 million for the quarter ended September 30, 2019. From September 30, 2019 to December 31, 2019, our ALLL decreased from $31.9 million or 0.76% of total loans to $29.1 million or 0.69% of total loans.

Non-Interest Income and Expense

We earned non-interest income for the quarter ended December 31, 2019 of $8.7 million compared to $7.7 million for the quarter ended September 30, 2019.

For the quarter ended December 31, 2019, non-interest expense totaled $52.7 million, compared to $52.2 million for the quarter ended September 30, 2019.  

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 5:00 p.m. Central Time on Tuesday, January 21, 2020. Todd Ritterbusch, Chief Lending Officer, will also be available for questions.

To participate in the live conference call, please dial 1-855-940-9472 (Canada: 1-855-669-9657) and request to be joined into the Triumph Bancorp, Inc. call.  A simultaneous audio-only webcast may be accessed via the Company's website at www.triumphbancorp.com through the Investor Relations, News & Events, Webcasts and Presentations links, or through a direct link here at: https://services.choruscall.com/links/tbk200121.html. An archive of this conference call will subsequently be available at this same location on the Company’s website.

2


 

About Triumph

Triumph Bancorp, Inc. (Nasdaq: TBK) is a financial holding company headquartered in Dallas, Texas.  Triumph offers a diversified line of community banking, national lending, and commercial finance products through its bank subsidiary, TBK Bank, SSB. 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: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; 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 acquisitions of First Bancorp of Durango, Inc., Southern Colorado Corp., and the operating assets of Interstate Capital Corporation and certain of its affiliates) and any future acquisitions; changes in management personnel; interest rate risk; concentration of our factoring services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets, or deferred tax assets; 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 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; and increases in our capital requirements.

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 12, 2019.

Non-GAAP Financial Measures

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


3


 

The following table sets forth key metrics used by Triumph to monitor our 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

 

 

As of and for the Years Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Financial Highlights:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,060,297

 

 

$

5,039,697

 

 

$

4,783,189

 

 

$

4,529,783

 

 

$

4,559,779

 

 

$

5,060,297

 

 

$

4,559,779

 

Loans held for investment

 

$

4,194,512

 

 

$

4,209,417

 

 

$

3,835,903

 

 

$

3,612,869

 

 

$

3,608,644

 

 

$

4,194,512

 

 

$

3,608,644

 

Deposits

 

$

3,789,906

 

 

$

3,697,833

 

 

$

3,658,978

 

 

$

3,314,440

 

 

$

3,450,349

 

 

$

3,789,906

 

 

$

3,450,349

 

Net income available to common stockholders

 

$

16,709

 

 

$

14,317

 

 

$

12,730

 

 

$

14,788

 

 

$

18,085

 

 

$

58,544

 

 

$

51,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios - Annualized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.31

%

 

 

1.17

%

 

 

1.09

%

 

 

1.33

%

 

 

1.60

%

 

 

1.23

%

 

 

1.33

%

Return on average total equity

 

 

10.24

%

 

 

8.79

%

 

 

7.83

%

 

 

9.30

%

 

 

11.35

%

 

 

9.04

%

 

 

9.24

%

Return on average common equity

 

 

10.24

%

 

 

8.79

%

 

 

7.83

%

 

 

9.30

%

 

 

11.40

%

 

 

9.04

%

 

 

9.27

%

Return on average tangible common equity (1)

 

 

14.54

%

 

 

12.56

%

 

 

11.19

%

 

 

13.43

%

 

 

16.73

%

 

 

12.93

%

 

 

11.90

%

Yield on loans(2)

 

 

7.48

%

 

 

7.63

%

 

 

7.95

%

 

 

7.99

%

 

 

8.14

%

 

 

7.75

%

 

 

8.07

%

Cost of interest bearing deposits

 

 

1.45

%

 

 

1.49

%

 

 

1.42

%

 

 

1.24

%

 

 

1.15

%

 

 

1.40

%

 

 

1.02

%

Cost of total deposits

 

 

1.15

%

 

 

1.19

%

 

 

1.14

%

 

 

0.99

%

 

 

0.91

%

 

 

1.12

%

 

 

0.80

%

Cost of total funds

 

 

1.35

%

 

 

1.41

%

 

 

1.40

%

 

 

1.28

%

 

 

1.14

%

 

 

1.36

%

 

 

1.09

%

Net interest margin(2)

 

 

5.72

%

 

 

5.85

%

 

 

5.99

%

 

 

6.15

%

 

 

6.34

%

 

 

5.92

%

 

 

6.35

%

Net non-interest expense to average assets

 

 

3.46

%

 

 

3.64

%

 

 

3.68

%

 

 

3.70

%

 

 

3.55

%

 

 

3.61

%

 

 

3.70

%

Adjusted net non-interest expense to average assets (1)

 

 

3.46

%

 

 

3.64

%

 

 

3.68

%

 

 

3.70

%

 

 

3.55

%

 

 

3.61

%

 

 

3.55

%

Efficiency ratio

 

 

70.15

%

 

 

71.93

%

 

 

71.37

%

 

 

70.54

%

 

 

65.52

%

 

 

70.99

%

 

 

66.94

%

Adjusted efficiency ratio (1)

 

 

70.15

%

 

 

71.93

%

 

 

71.37

%

 

 

70.54

%

 

 

65.52

%

 

 

70.99

%

 

 

64.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due to total loans

 

 

2.19

%

 

 

2.47

%

 

 

1.90

%

 

 

2.33

%

 

 

2.41

%

 

 

2.19

%

 

 

2.41

%

Non-performing loans to total loans

 

 

0.97

%

 

 

1.00

%

 

 

0.96

%

 

 

0.95

%

 

 

1.00

%

 

 

0.97

%

 

 

1.00

%

Non-performing assets to total assets

 

 

0.87

%

 

 

0.91

%

 

 

0.86

%

 

 

0.84

%

 

 

0.84

%

 

 

0.87

%

 

 

0.84

%

ALLL to non-performing loans

 

 

71.63

%

 

 

75.58

%

 

 

79.91

%

 

 

80.70

%

 

 

76.47

%

 

 

71.63

%

 

 

76.47

%

ALLL to total loans

 

 

0.69

%

 

 

0.76

%

 

 

0.77

%

 

 

0.76

%

 

 

0.76

%

 

 

0.69

%

 

 

0.76

%

Net charge-offs to average loans

 

 

0.08

%

 

 

0.01

%

 

 

0.05

%

 

 

0.03

%

 

 

0.05

%

 

 

0.17

%

 

 

0.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital to average assets(4)

 

 

10.03

%

 

 

10.37

%

 

 

10.84

%

 

 

11.32

%

 

 

11.08

%

 

 

10.03

%

 

 

11.08

%

Tier 1 capital to risk-weighted assets(4)

 

 

10.29

%

 

 

10.08

%

 

 

11.08

%

 

 

11.76

%

 

 

11.49

%

 

 

10.29

%

 

 

11.49

%

Common equity tier 1 capital to risk-weighted assets(4)

 

 

9.45

%

 

 

9.26

%

 

 

10.19

%

 

 

10.81

%

 

 

10.55

%

 

 

9.45

%

 

 

10.55

%

Total capital to risk-weighted assets(4)

 

 

12.75

%

 

 

11.79

%

 

 

12.88

%

 

 

13.62

%

 

 

13.35

%

 

 

12.75

%

 

 

13.35

%

Total equity to total assets

 

 

12.58

%

 

 

12.57

%

 

 

13.45

%

 

 

14.27

%

 

 

13.96

%

 

 

12.58

%

 

 

13.96

%

Tangible common stockholders' equity to tangible assets(1)

 

 

9.16

%

 

 

9.10

%

 

 

9.78

%

 

 

10.37

%

 

 

10.03

%

 

 

9.16

%

 

 

10.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

25.50

 

 

$

24.99

 

 

$

24.56

 

 

$

24.19

 

 

$

23.62

 

 

$

25.50

 

 

$

23.62

 

Tangible book value per share (1)

 

$

17.88

 

 

$

17.40

 

 

$

17.13

 

 

$

16.82

 

 

$

16.22

 

 

$

17.88

 

 

$

16.22

 

Basic earnings per common share

 

$

0.67

 

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.68

 

 

$

2.26

 

 

$

2.06

 

Diluted earnings per common share

 

$

0.66

 

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.67

 

 

$

2.25

 

 

$

2.03

 

Adjusted diluted earnings per common share(1)

 

$

0.66

 

 

$

0.56

 

 

$

0.48

 

 

$

0.55

 

 

$

0.67

 

 

$

2.25

 

 

$

2.21

 

Shares outstanding end of period

 

 

24,964,961

 

 

 

25,357,985

 

 

 

26,198,308

 

 

 

26,709,411

 

 

 

26,949,936

 

 

 

24,964,961

 

 

 

26,949,936

 



4


 

Unaudited consolidated balance sheet as of:

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

 

$

197,880

 

 

$

115,043

 

 

$

209,305

 

 

$

171,950

 

 

$

234,939

 

Securities - available for sale

 

 

248,820

 

 

 

302,917

 

 

 

329,991

 

 

 

339,465

 

 

 

336,423

 

Securities - held to maturity

 

 

8,417

 

 

 

8,517

 

 

 

8,573

 

 

 

8,499

 

 

 

8,487

 

Equity securities

 

 

5,437

 

 

 

5,543

 

 

 

5,479

 

 

 

5,183

 

 

 

5,044

 

Loans held for sale

 

 

2,735

 

 

 

7,499

 

 

 

2,877

 

 

 

610

 

 

 

2,106

 

Loans held for investment

 

 

4,194,512

 

 

 

4,209,417

 

 

 

3,835,903

 

 

 

3,612,869

 

 

 

3,608,644

 

Allowance for loan and lease losses

 

 

(29,092

)

 

 

(31,895

)

 

 

(29,416

)

 

 

(27,605

)

 

 

(27,571

)

Loans, net

 

 

4,165,420

 

 

 

4,177,522

 

 

 

3,806,487

 

 

 

3,585,264

 

 

 

3,581,073

 

FHLB and other restricted stock

 

 

19,860

 

 

 

23,960

 

 

 

18,037

 

 

 

21,191

 

 

 

15,943

 

Premises and equipment, net

 

 

96,595

 

 

 

87,112

 

 

 

84,998

 

 

 

84,931

 

 

 

83,392

 

Other real estate owned ("OREO"), net

 

 

3,009

 

 

 

2,849

 

 

 

3,351

 

 

 

3,073

 

 

 

2,060

 

Goodwill and intangible assets, net

 

 

190,286

 

 

 

192,440

 

 

 

194,668

 

 

 

197,015

 

 

 

199,417

 

Bank-owned life insurance

 

 

40,954

 

 

 

40,724

 

 

 

40,847

 

 

 

40,667

 

 

 

40,509

 

Deferred tax asset, net

 

 

3,812

 

 

 

5,971

 

 

 

7,278

 

 

 

7,608

 

 

 

8,438

 

Other assets

 

 

77,072

 

 

 

69,600

 

 

 

71,298

 

 

 

64,327

 

 

 

41,948

 

Total assets

 

$

5,060,297

 

 

$

5,039,697

 

 

$

4,783,189

 

 

$

4,529,783

 

 

$

4,559,779

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

809,696

 

 

$

754,233

 

 

$

684,223

 

 

$

667,597

 

 

$

724,527

 

Interest bearing deposits

 

 

2,980,210

 

 

 

2,943,600

 

 

 

2,974,755

 

 

 

2,646,843

 

 

 

2,725,822

 

Total deposits

 

 

3,789,906

 

 

 

3,697,833

 

 

 

3,658,978

 

 

 

3,314,440

 

 

 

3,450,349

 

Customer repurchase agreements

 

 

2,033

 

 

 

14,124

 

 

 

12,788

 

 

 

3,727

 

 

 

4,485

 

Federal Home Loan Bank advances

 

 

430,000

 

 

 

530,000

 

 

 

305,000

 

 

 

405,000

 

 

 

330,000

 

Subordinated notes

 

 

87,327

 

 

 

49,010

 

 

 

48,983

 

 

 

48,956

 

 

 

48,929

 

Junior subordinated debentures

 

 

39,566

 

 

 

39,443

 

 

 

39,320

 

 

 

39,200

 

 

 

39,083

 

Other liabilities

 

 

74,875

 

 

 

75,594

 

 

 

74,758

 

 

 

72,244

 

 

 

50,326

 

Total liabilities

 

 

4,423,707

 

 

 

4,406,004

 

 

 

4,139,827

 

 

 

3,883,567

 

 

 

3,923,172

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

272

 

 

 

272

 

 

 

271

 

 

 

271

 

 

 

271

 

Additional paid-in-capital

 

 

473,251

 

 

 

472,368

 

 

 

471,145

 

 

 

470,292

 

 

 

469,341

 

Treasury stock, at cost

 

 

(67,069

)

 

 

(52,632

)

 

 

(27,468

)

 

 

(9,881

)

 

 

(2,288

)

Retained earnings

 

 

229,030

 

 

 

212,321

 

 

 

198,004

 

 

 

185,274

 

 

 

170,486

 

Accumulated other comprehensive income

 

 

1,106

 

 

 

1,364

 

 

 

1,410

 

 

 

260

 

 

 

(1,203

)

Total stockholders' equity

 

 

636,590

 

 

 

633,693

 

 

 

643,362

 

 

 

646,216

 

 

 

636,607

 

Total liabilities and equity

 

$

5,060,297

 

 

$

5,039,697

 

 

$

4,783,189

 

 

$

4,529,783

 

 

$

4,559,779

 


5


 

Unaudited consolidated statement of income:

 

For the Three Months Ended

 

 

For the Years Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

(Dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

52,395

 

 

$

50,249

 

 

$

47,910

 

 

$

45,094

 

 

$

44,435

 

 

$

195,648

 

 

$

160,723

 

Factored receivables, including fees

 

 

25,573

 

 

 

25,570

 

 

 

25,558

 

 

 

24,556

 

 

 

28,070

 

 

 

101,257

 

 

 

92,103

 

Securities

 

 

2,379

 

 

 

2,784

 

 

 

2,667

 

 

 

2,644

 

 

 

2,314

 

 

 

10,474

 

 

 

6,354

 

FHLB and other restricted stock

 

 

165

 

 

 

209

 

 

 

146

 

 

 

192

 

 

 

154

 

 

 

712

 

 

 

507

 

Cash deposits

 

 

659

 

 

 

603

 

 

 

1,022

 

 

 

778

 

 

 

877

 

 

 

3,062

 

 

 

3,289

 

Total interest income

 

 

81,171

 

 

 

79,415

 

 

 

77,303

 

 

 

73,264

 

 

 

75,850

 

 

 

311,153

 

 

 

262,976

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

10,961

 

 

 

11,036

 

 

 

10,010

 

 

 

8,218

 

 

 

7,931

 

 

 

40,225

 

 

 

23,058

 

Subordinated notes

 

 

1,035

 

 

 

840

 

 

 

839

 

 

 

839

 

 

 

839

 

 

 

3,553

 

 

 

3,351

 

Junior subordinated debentures

 

 

687

 

 

 

719

 

 

 

744

 

 

 

760

 

 

 

717

 

 

 

2,910

 

 

 

2,741

 

Other borrowings

 

 

2,080

 

 

 

2,055

 

 

 

2,291