Triumph Bancorp (TBK) Misses Q4 EPS by 12c

Triumph Bancorp (NASDAQ: TBK) reported Q4 EPS of $0.34, $0.12 worse than the analyst estimate of $0.46. Revenue for the quarter came in at $45.8 million versus the consensus estimate of $47.54 million.

2017 Fourth Quarter Highlights

• For the fourth quarter of 2017, net income was $6.3 million and net income available to common stockholders was $6.1 million, compared to net income of $9.8 million and net income available to common stockholders of $9.6 million for the quarter ended September 30, 2017. Diluted earnings per share were $0.29 for the quarter ended December 31, 2017, compared to $0.47 for the quarter ended September 30, 2017.
• Net income for the quarter ended December 31, 2017 was impacted by (i) an income tax charge of $3.0 million related to the re‑measurement of our deferred tax assets and deferred tax liabilities at our new expected effective tax rate due to the enactment of the Tax Cuts and Jobs Act (the “Tax Act”), (ii) acquisition-related transaction costs of $1.7 million, and (iii) a $1.3 million impairment charge on core deposit intangible assets associated with acquired public deposits that management decided to no longer hold.
• We report adjusted diluted earnings per share to remove the volatility of material gains and expenses related to merger and acquisition-related activities. Adjusted diluted earnings per share for the quarter ended December 31, 2017 were $0.34, compared to $0.47 for the quarter ended September 30, 2017.
• Non-performing assets to total assets decreased to 1.21% at December 31, 2017 from 1.42% at September 30, 2017. Net charge-offs to average loans increased to 0.06% for the quarter ended December 31, 2017, compared to 0.00% for the quarter ended September 30, 2017.
• Net interest margin (“NIM”) was 6.16% for the quarter ended December 31, 2017, compared to 5.90% for the quarter ended September 30, 2017. Adjusted NIM, which excludes loan discount accretion, was 5.93% for the quarter ended December 31, 2017, compared to 5.69% for the quarter ended September 30, 2017.
• We closed our previously announced acquisition of nine branch locations in Colorado (the “Acquired Branches”) from Independent Bank Group, Inc.’s banking subsidiary Independent Bank on October 6, 2017 at which time we completed the core system conversion. We acquired $95.8 million of loans, assumed $160.7 million of deposits associated with the branches and recorded $3.3 million of core deposit intangible assets and $5.8 million of goodwill.
• We closed our previously announced acquisition of Valley Bancorp, Inc. (“Valley”) and its community banking subsidiary, Valley Bank & Trust, on December 9, 2017 at which time we completed the core system conversion. We acquired $171.2 million of loans, assumed $293.4 million of deposits from Valley and recorded $6.1 million of core deposit intangible assets and $10.5 million of goodwill.
• On January 19, 2018, we entered into an agreement to sell the assets (the “Disposal Group”) of Triumph Healthcare Finance (“THF”) and exit our healthcare asset based lending line of business. The decision to sell THF was made prior to the end of the fourth quarter, and at December 31, 2017, the fair value of the Disposal Group exceeded its carrying amount. As a result of this decision, the carrying amount of the Disposal Group, including loans with a recorded balance of $68.7 million, net of an allowance for loan and lease losses of $2.1 million, was transferred to assets held for sale.
• Total loans held for investment increased $385.4 million, or 15.9%, to $2.811 billion at December 31, 2017, compared to $2.425 billion at September 30, 2017. Organic growth, which excludes the impact of the THF loan reclassification and acquired loans, was $186.3 million, or 7.9%, in the fourth quarter.

For earnings history and earnings-related data on Triumph Bancorp (TBK) click here.

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