Triumph Bancorp (TBK) Reports Q1 Loss of $0.18

Triumph Bancorp (NASDAQ: TBK) reported Q1 EPS of ($0.18).

2020 First Quarter Highlights and Recent Developments

• For the first quarter of 2020, net loss available to common stockholders was $4.5 million. Diluted losses per share were $0.18.
• On January 1, 2020, we adopted Accounting Standard Update 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” commonly referred to as the Current Expected Credit Losses (“CECL”) model.
• For the quarter ended March 31, 2020, we recorded $20.3 million of total credit loss expense. $17.4 million of this is recorded as credit loss expense related to our loan portfolio summarized as follows:
  • Significant deterioration in our macroeconomic forecasts to reflect expected economic impact of COVID-19 resulted in approximately $10.5 million of credit loss expense.
  • $3.0 million of credit loss expense is due to net loan growth of $126.0 million and changes in the mix of our total loan portfolio. Net charge offs were $1.5 million and the change in specific reserves was $2.3 million.
  • The adoption of CECL on January 1, 2020, increased the ACL by $0.3 million.
  • Our ACL as a percentage of loans held for investment increased 34 basis points during the quarter to 1.04% at March 31, 2020.
• For the quarter ended March 31, 2020, we recorded in other noninterest expense $2.9 million of credit loss expense related to off balance sheet commitments to lend to reserve for the contractual term of the commitments considering our economic forecast of future conditions. Total unfunded commitments subject to the reserve as of March 31, 2020 were $596.1 million. This includes a $105.3 million increase in unsettled liquid credit balances at the end of the period that created approximately $1.6 million of credit expense for the quarter.
• Net interest margin (“NIM”) was 5.63% for the quarter ended March 31, 2020.
• Total loans held for investment increased $126.0 million, or 3.0%, to $4.321 billion at March 31, 2020. Excluding premium finance loans, loan growth totaled $227.1 million. Average loans for the quarter decreased $88.6 million, or 2.1%, to $4.046 billion.
• The total dollar value of invoices purchased by Triumph Business Capital for the quarter ended March 31, 2020 was $1.451 billion with an average invoice size of $1,651. The transportation average invoice size for the quarter was $1,481.
• For the quarter ended March 31, 2020, TriumphPay processed 504,250 invoices paying 44,568 distinct carriers a total of $530.8 million.
• During the quarter ended March 31, 2020, we repurchased 871,319 shares into treasury stock under our stock repurchase program at an average price of $40.81, for a total of $35.6 million, effectively completing the $50.0 million stock repurchase program authorized by our board of directors on October 16, 2019.
• On April 20, 2020, the Company entered into an agreement to sell the assets (the “Disposal Group”) of Triumph Premium Finance (“TPF”) and exit its premium finance line of business. The decision to sell TPF was made during the three months ended March 31, 2020, and at March 31, 2020, the carrying amount of the Disposal Group, primarily consisting of $98.3 million of premium finance loans, was transferred to assets held for sale.

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

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