Triumph Financial(US:TFIN)2019-04-19 20:08Financial Performance - For the three months ended March 31, 2019, net income available to common stockholders was $14.8 million, or $0.55 per diluted share, compared to $11.9 million, or $0.56 per diluted share for the same period in 2018[160]. - Net income for the three months ended March 31, 2019, was $14.8 million, an increase of $2.7 million from $12.1 million for the same period in 2018[180]. - Adjusted net income for the three months ended March 31, 2018, was $11.1 million, compared to $14.8 million for the same period in 2019, reflecting a $3.7 million increase[181]. - Total stockholders' equity increased by $9.6 million during the three months ended March 31, 2019, primarily due to net income for the period[163]. - The return on average common equity was 9.30% and the return on average assets was 1.33% for the three months ended March 31, 2019[160][172]. Assets and Liabilities - As of March 31, 2019, the company had total assets of $4.530 billion, total loans held for investment of $3.613 billion, total deposits of $3.314 billion, and total stockholders' equity of $646.2 million[157]. - Total assets as of March 31, 2019, were $4,529,783 thousand, a slight decrease from $4,559,779 thousand at the end of 2018[174]. - Total liabilities decreased by $40 million to $3.884 billion as of March 31, 2019, compared to $3.923 billion at December 31, 2018[255]. - Total deposits decreased by $135.9 million, or 3.9%, to $3.314 billion as of March 31, 2019, primarily due to decreases in all deposit products except for savings deposits and certificates of deposit[256]. Loan Portfolio - The company's commercial finance product lines decreased by $69.3 million, or 5.5%, to $1.187 billion as of March 31, 2019, constituting 33% of the total loan portfolio[158][161]. - Average total loans increased to $3.54 billion for the three months ended March 31, 2019, up from $2.77 billion in the same period of 2018[186]. - Outstanding loans increased by $4.2 million from December 31, 2018, compared to a $63.1 million increase during the same period in 2018[199]. - The average balance of higher yielding commercial finance loans increased by $244.8 million, or 25.8%, from $949.9 million for the three months ended March 31, 2018 to $1.195 billion for the same period in 2019[188]. - The ratio of nonperforming loans to total loans improved to 0.95% as of March 31, 2019, down from 1.00% a year earlier[174]. Income and Expenses - Interest income for the three months ended March 31, 2019, was $73.3 million, compared to $54.1 million for the same period in 2018[172]. - Net interest income increased by $14.2 million, contributing to the overall growth in adjusted net income[181]. - Total noninterest expense rose by $14.5 million, or 42.7%, from $34.0 million to $48.6 million for the same period[202]. - Salaries and employee benefits expenses increased by $7.0 million, or 36.3%, due to a significant increase in workforce from acquisitions[203]. - Noninterest income increased by $2.4 million, or 45.7%, from $5.2 million to $7.5 million for the three months ended March 31, 2019[200]. Capital and Equity - Total stockholders' equity increased to $646,216 thousand as of March 31, 2019, compared to $636,607 thousand at the end of 2018[179]. - The company repurchased 247,312 shares at an average price of $30.51, totaling $7.6 million under its stock repurchase program during the three months ended March 31, 2019[165]. - The allowance for loan and lease losses (ALLL) was $27.6 million at March 31, 2019, representing an ALLL to total loans ratio of 0.76%[197]. - The company is subject to various regulatory capital requirements, with all carrying value of $39.2 million allowed in the calculation of Tier I capital as of March 31, 2019[265][271]. Interest Rate Risk - The principal objective of asset and liability management is to evaluate interest rate risk while maximizing net income and preserving adequate levels of liquidity and capital[281]. - As of March 31, 2019, a 400 basis points increase in interest rates is projected to result in a 9.1% increase in net interest income over the following 12 months[285]. - The company emphasizes the origination of shorter duration and variable rate loans to mitigate negative exposure to interest rate increases[286]. - A 100 basis points increase in interest rates is expected to yield a 1.4% increase in net interest income over the following 12 months as of March 31, 2019[285]. - The calculations of interest rate risk do not account for management actions that may be taken in response to anticipated interest rate changes[285].