Triumph Bancorp Reports Second Quarter Net Income to Common Stockholders of $12.7 Million

Company Release - 7/17/2019 4:07 PM ET

DALLAS, July 17, 2019 (GLOBE NEWSWIRE) -- Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”) today announced earnings and operating results for the second 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 Second Quarter Highlights and Recent Developments

  • For the second quarter of 2019, net income available to common stockholders was $12.7 million. Diluted earnings per share were $0.48. 
  • Net interest margin (“NIM”) was 5.99% for the quarter ended June 30, 2019. 
  • Total loans held for investment increased $223.0 million, or 6.2%, to $3.836 billion at June 30, 2019. Average loans for the quarter increased $172.9 million, or 4.9%, to $3.708 billion.
  • Triumph Business Capital grew period-end clients to 6,455 clients, which is an increase of 73 clients, or 1.1%. The total dollar value of invoices purchased for the quarter ended June 30, 2019 was $1.409 billion with an average invoice price of $1,612. 
  • At June 30, 2019, there were 146 clients utilizing the TriumphPay platform, which is an increase of 16 clients, or 12.3%, during the quarter. For the quarter ended June 30, 2019, TriumphPay processed 149,734 invoices paying 28,126 distinct carriers a total of $168.8 million.
  • During the quarter ended June 30, 2019, the Company repurchased 590,829 shares into treasury stock under its stock repurchase program at an average price of $29.42, for a total of $17.4 million. During the six months ended June 30, 2019, the Company has repurchased 838,141 shares into treasury stock under its stock repurchase program at an average price of $29.74, for a total of $24.9 million, completing its previously announced $25.0 million stock repurchase program.

Repurchase Program Authorization

On July 17, 2019 the Company’s board of directors authorized the Company to repurchase up to an additional $25.0 million of the Company’s outstanding common stock.  The Company may repurchase these shares from time to time in open market transactions or through privately negotiated transactions at the Company’s discretion.  The amount, timing and nature of any share repurchases will be based on a variety of factors, including the trading price of the Company’s common stock, applicable securities laws restrictions, regulatory limitations and market and economic factors.  This repurchase program is authorized for a period of up to one year and does not require the Company to repurchase any specific number of shares.  The repurchase program may be modified, suspended or discontinued at any time, at the Company’s discretion.

Balance Sheet

Total loans held for investment increased $223.0 million, or 6.2%, during the second quarter to $3.836 billion at June 30, 2019. The commercial finance portfolio increased $77.6 million, or 7.0%, to $1.187 billion at June 30, 2019. The national lending portfolio increased $91.5 million, or 23.7%, to $477.2 million at June 30, 2019. The community banking portfolio increased $53.9 million, or 2.5%, to $2.172 billion at June 30, 2019.

Total deposits were $3.659 billion at June 30, 2019, an increase of $344.5 million or 10.4% in the second quarter of 2019.  Non-interest-bearing deposits accounted for 19% of total deposits and non-time deposits accounted for 57% of total deposits at June 30, 2019. 

Net Interest Income

We earned net interest income for the quarter ended June 30, 2019 of $63.4 million compared to $61.3 million for the quarter ended March 31, 2019.

Yields on loans for the quarter ended June 30, 2019 were down 4 bps from the prior quarter to 7.95%. The average cost of our total deposits was 1.14% for the quarter ended June 30, 2019 compared to 0.99% for the quarter ended March 31, 2019. 

Asset Quality

Non-performing assets were 0.86% of total assets at June 30, 2019 compared to 0.84% of total assets at March 31, 2019.  The ratio of past due to total loans decreased to 1.90% at June 30, 2019 from 2.33% at March 31, 2019. We recorded total net charge-offs of $1.9 million, or 0.05% of average loans, for the quarter ended June 30, 2019 compared to net charge-offs of $1.0 million, or 0.03% of average loans, for the quarter ended March 31, 2019. 

We recorded a provision for loan losses of $3.7 million for the quarter ended June 30, 2019 compared to a provision of $1.0 million for the quarter ended March 31, 2019. From March 31, 2019 to June 30, 2019, our ALLL increased from $27.6 million or 0.76% of total loans to $29.4 million or 0.77% of total loans.

Non-Interest Income and Expense

We earned non-interest income for the quarter ended June 30, 2019 of $7.6 million compared to $7.5 million for the quarter ended March 31, 2019.

For the quarter ended June 30, 2019, non-interest expense totaled $50.7 million, compared to $48.6 million for the quarter ended March 31, 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 7:00 a.m. Central Time on Thursday, July 18, 2019. 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/tbk190718.html. An archive of this conference call will subsequently be available at this same location on the Company’s website.  

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 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  As of and for the Six Months Ended 
  June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30, 
(Dollars in thousands) 2019  2019  2018  2018  2018  2019  2018 
Financial Highlights:                            
Total assets $4,783,189  $4,529,783  $4,559,779  $4,537,102  $3,794,631  $4,783,189  $3,794,631 
Loans held for investment $3,835,903  $3,612,869  $3,608,644  $3,512,143  $3,196,462  $3,835,903  $3,196,462 
Deposits $3,658,978  $3,314,440  $3,450,349  $3,439,049  $2,624,942  $3,658,978  $2,624,942 
Net income available to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070 
                             
Performance Ratios - Annualized:                            
Return on average assets  1.09%  1.33%  1.60%  0.90%  1.37%  1.21%  1.40%
Return on average total equity  7.83%  9.30%  11.35%  5.88%  8.53%  8.55%  10.01%
Return on average common equity  7.83%  9.30%  11.40%  5.85%  8.54%  8.55%  10.05%
Return on average tangible common equity(1)  11.19%  13.43%  16.73%  7.57%  9.95%  12.29%  11.85%
Yield on loans(2)  7.95%  7.99%  8.14%  8.33%  8.09%  7.97%  7.88%
Cost of interest bearing deposits  1.42%  1.24%  1.15%  1.08%  0.93%  1.33%  0.89%
Cost of total deposits  1.14%  0.99%  0.91%  0.85%  0.73%  1.07%  0.70%
Cost of total funds  1.40%  1.28%  1.14%  1.16%  1.06%  1.34%  1.00%
Net interest margin(2)  5.99%  6.15%  6.34%  6.59%  6.36%  6.07%  6.21%
Net non-interest expense to average assets  3.68%  3.70%  3.55%  4.19%  3.59%  3.69%  3.51%
Adjusted net non-interest expense to average assets(1)  3.68%  3.70%  3.55%  3.62%  3.47%  3.69%  3.51%
Efficiency ratio  71.37%  70.54%  65.52%  72.15%  64.26%  70.96%  64.65%
Adjusted efficiency ratio(1)  71.37%  70.54%  65.52%  63.49%  62.38%  70.96%  64.29%
                             
Asset Quality:(3)                            
Past due to total loans  1.90%  2.33%  2.41%  2.23%  2.54%  1.90%  2.54%
Non-performing loans to total loans  0.96%  0.95%  1.00%  1.13%  1.43%  0.96%  1.43%
Non-performing assets to total assets  0.86%  0.84%  0.84%  0.93%  1.28%  0.86%  1.28%
ALLL to non-performing loans  79.91%  80.70%  76.47%  68.82%  53.57%  79.91%  53.57%
ALLL to total loans  0.77%  0.76%  0.76%  0.78%  0.77%  0.77%  0.77%
Net charge-offs to average loans  0.05%  0.03%  0.05%  0.12%  0.01%  0.08%  0.06%
                             
Capital:                            
Tier 1 capital to average assets(4)  10.84%  11.32%  11.08%  11.75%  15.00%  10.84%  15.00%
Tier 1 capital to risk-weighted assets(4)  11.09%  11.76%  11.49%  11.16%  14.68%  11.09%  14.68%
Common equity tier 1 capital to risk-weighted assets(4)  10.19%  10.81%  10.55%  9.96%  13.32%  10.19%  13.32%
Total capital to risk-weighted assets(4)  12.88%  13.62%  13.35%  13.05%  16.73%  12.88%  16.73%
Total equity to total assets  13.45%  14.27%  13.96%  13.59%  16.00%  13.45%  16.00%
Tangible common stockholders' equity to tangible assets(1)  9.78%  10.37%  10.03%  9.35%  13.05%  9.78%  13.05%
                             
Per Share Amounts:                            
Book value per share $24.56  $24.19  $23.62  $23.10  $22.76  $24.56  $22.76 
Tangible book value per share(1) $17.13  $16.82  $16.22  $15.42  $18.27  $17.13  $18.27 
Basic earnings per common share $0.48  $0.55  $0.68  $0.34  $0.48  $1.04  $1.04 
Diluted earnings per common share $0.48  $0.55  $0.67  $0.34  $0.47  $1.03  $1.02 
Adjusted diluted earnings per common share(1) $0.48  $0.55  $0.67  $0.51  $0.50  $1.03  $1.02 
Shares outstanding end of period  26,198,308   26,709,411   26,949,936   26,279,761   26,260,785   26,198,308   26,260,785 
                             

Unaudited consolidated balance sheet as of:

                
  June 30,  March 31,  December 31,  September 30,  June 30, 
 (Dollars in thousands) 2019  2019  2018  2018  2018 
ASSETS                    
Total cash and cash equivalents $209,305  $171,950  $234,939  $282,409  $133,365 
Securities - available for sale  329,991   339,465   336,423   355,981   183,184 
Securities - held to maturity  8,573   8,499   8,487   8,403   8,673 
Equity securities  5,479   5,183   5,044   4,981   5,025 
Loans held for sale  2,877   610   2,106   683    
Loans held for investment  3,835,903   3,612,869   3,608,644   3,512,143   3,196,462 
Allowance for loan and lease losses  (29,416)  (27,605)  (27,571)  (27,256)  (24,547)
Loans, net  3,806,487   3,585,264   3,581,073   3,484,887   3,171,915 
FHLB stock  18,037   21,191   15,943   23,109   19,223 
Premises and equipment, net  84,998   84,931   83,392   82,935   68,313 
Other real estate owned ("OREO"), net  3,351   3,073   2,060   2,442   2,528 
Goodwill and intangible assets, net  194,668   197,015   199,417   201,842   117,777 
Bank-owned life insurance  40,847   40,667   40,509   40,339   40,168 
Deferred tax asset, net  7,278   7,608   8,438   8,137   8,810 
Other assets  71,298   64,327   41,948   40,954   35,650 
Total assets $4,783,189  $4,529,783  $4,559,779  $4,537,102  $3,794,631 
LIABILITIES                    
Non-interest bearing deposits $684,223  $667,597  $724,527  $697,903  $561,033 
Interest bearing deposits  2,974,755   2,646,843   2,725,822   2,741,146   2,063,909 
Total deposits  3,658,978   3,314,440   3,450,349   3,439,049   2,624,942 
Customer repurchase agreements  12,788   3,727   4,485   13,248   10,509 
Federal Home Loan Bank advances  305,000   405,000   330,000   330,000   420,000 
Subordinated notes  48,983   48,956   48,929   48,903   48,878 
Junior subordinated debentures  39,320   39,200   39,083   38,966   38,849 
Other liabilities  74,758   72,244   50,326   50,295   44,228 
Total liabilities  4,139,827   3,883,567   3,923,172   3,920,461   3,187,406 
EQUITY                    
Preferred stock series A           4,550   4,550 
Preferred stock series B           5,108   5,108 
Common stock  271   271   271   264   264 
Additional paid-in-capital  471,145   470,292   469,341   458,920   457,980 
Treasury stock, at cost  (27,468)  (9,881)  (2,288)  (2,285)  (2,254)
Retained earnings  198,004   185,274   170,486   152,401   143,426 
Accumulated other comprehensive income  1,410   260   (1,203)  (2,317)  (1,849)
Total equity  643,362   646,216   636,607   616,641   607,225 
Total liabilities and equity $4,783,189  $4,529,783  $4,559,779  $4,537,102  $3,794,631 
                     

Unaudited consolidated statement of income:

       
  For the Three Months Ended  For the Six Months Ended 
  June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30, 
 (Dollars in thousands) 2019  2019  2018  2018  2018  2019  2018 
Interest income:                            
Loans, including fees $47,910  $45,094  $44,435  $41,257  $38,148  $93,004  $75,031 
Factored receivables, including fees  25,558   24,556   28,070   27,939   20,791   50,114   36,094 
Securities  2,667   2,644   2,314   1,551   1,179   5,311   2,489 
FHLB stock  146   192   154   147   101   338   206 
Cash deposits  1,022   778   877   865   1,030   1,800   1,547 
Total interest income  77,303   73,264   75,850   71,759   61,249   150,567   115,367 
Interest expense:                            
Deposits  10,010   8,218   7,931   6,219   4,631   18,228   8,908 
Subordinated notes  839   839   839   837   838   1,678   1,675 
Junior subordinated debentures  744   760   717   714   713   1,504   1,310 
Other borrowings  2,291   2,136   1,482   2,207   1,810   4,427   3,087 
Total interest expense  13,884   11,953   10,969   9,977   7,992   25,837   14,980 
Net interest income  63,419   61,311   64,881   61,782   53,257   124,730   100,387 
Provision for loan losses  3,681   1,014   1,910   6,803   4,906   4,695   7,454 
Net interest income after provision for loan losses  59,738   60,297   62,971   54,979   48,351   120,035   92,933 
Non-interest income:                            
Service charges on deposits  1,700   1,606   1,702   1,412   1,210   3,306   2,355 
Card income  2,071   1,844   1,999   1,877   1,394   3,915   2,638 
Net OREO gains (losses) and valuation adjustments  148   209   37   65   (528)  357   (616)
Net gains (losses) on sale of securities  14   (11)           3   (272)
Fee income  1,519   1,612   1,636   1,593   1,121   3,131   1,921 
Insurance commissions  961   919   846   1,113   819   1,880   1,533 
Gain on sale of subsidiary                    1,071 
Other  1,210   1,359   574   (1)  929   2,569   1,487 
Total non-interest income  7,623   7,538   6,794   6,059   4,945   15,161   10,117 
Non-interest expense:                            
Salaries and employee benefits  28,120   26,439   25,586   24,695   20,527   54,559   39,931 
Occupancy, furniture and equipment  4,502   4,522   4,402   3,553   3,014   9,024   6,068 
FDIC insurance and other regulatory assessments  303   299   184   363   383   602   582 
Professional fees  1,550   1,865   1,837   3,384   2,078   3,415   3,718 
Amortization of intangible assets  2,347   2,402   2,438   2,064   1,361   4,749   2,478 
Advertising and promotion  1,796   1,604   1,036   1,609   1,300   3,400   2,329 
Communications and technology  4,988   4,874   4,388   7,252   3,271   9,862   6,630 
Other  7,098   6,561   7,091   6,026   5,469   13,659   9,709 
Total non-interest expense  50,704   48,566   46,962   48,946   37,403   99,270   71,445 
Net income before income tax  16,657   19,269   22,803   12,092   15,893   35,926   31,605 
Income tax expense  3,927   4,481   4,718   2,922   3,508   8,408   7,152 
Net income $12,730  $14,788  $18,085  $9,170  $12,385  $27,518  $24,453 
Dividends on preferred stock           (195)  (193)     (383)
Net income available to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070 
                             

Earnings per share:

       
  For the Three Months Ended  For the Six Months Ended 
  June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30, 
(Dollars in thousands) 2019  2019  2018  2018  2018  2019  2018 
Basic                            
Net income to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070 
Weighted average common shares outstanding  26,396,351   26,679,724   26,666,554   26,178,194   25,519,108   26,537,255   23,133,489 
Basic earnings per common share $0.48  $0.55  $0.68  $0.34  $0.48  $1.04  $1.04 
                             
Diluted                            
Net income to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070 
Dilutive effect of preferred stock           195   193      383 
Net income to common stockholders - diluted $12,730  $14,788  $18,085  $9,170  $12,385  $27,518  $24,453 
Weighted average common shares outstanding  26,396,351   26,679,724   26,666,554   26,178,194   25,519,108   26,537,255   23,133,489 
Dilutive effects of:                            
Assumed conversion of Preferred A        89,240   315,773   315,773      315,773 
Assumed conversion of Preferred B        100,176   354,471   354,471      354,471 
Assumed exercises of stock options  59,962   64,166   76,219   90,320   86,821   61,819   85,123 
Restricted stock awards  30,110   49,795   46,457   45,796   37,417   39,352   60,425 
Restricted stock units        1,303   7,276   2,288      862 
Performance stock units                     
Weighted average shares outstanding - diluted  26,486,423   26,793,685   26,979,949   26,991,830   26,315,878   26,638,426   23,950,143 
Diluted earnings per common share $0.48  $0.55  $0.67  $0.34  $0.47  $1.03  $1.02 
                             
                             
Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows: 
                             
  For the Three Months Ended  For the Six Months Ended 
  June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30, 
  2019  2019  2018  2018  2018  2019  2018 
Assumed conversion of Preferred A                     
Assumed conversion of Preferred B                     
Stock options  70,037   50,752   51,952   51,952   51,952   70,037   51,952 
Restricted stock awards     13,290   14,513   14,513          
Restricted stock units  58,400   58,400            58,400    
Performance stock units  70,879   58,400   59,658   59,658   59,658   70,879   59,658 
                             

Loans held for investment summarized as of:

                
  June 30,  March 31,  December 31,  September 30,  June 30, 
 (Dollars in thousands) 2019  2019  2018  2018  2018 
Commercial real estate $1,098,279  $1,093,882  $992,080  $906,494  $766,839 
Construction, land development, land  157,861   145,002   179,591   190,920   147,852 
1-4 family residential properties  186,070   194,067   190,185   194,752   122,653 
Farmland  144,594   156,299   170,540   177,313   177,060 
Commercial  1,257,330   1,117,640   1,114,971   1,123,598   1,006,443 
Factored receivables  583,131   570,663   617,791   611,285   603,812 
Consumer  26,048   27,941   29,822   31,423   28,775 
Mortgage warehouse  382,590   307,375   313,664   276,358   343,028 
Total loans $3,835,903  $3,612,869  $3,608,644  $3,512,143  $3,196,462 
                     

Our total loans held for investment portfolio consists of traditional community bank loans as well as commercial finance product lines focused on businesses that require specialized financial solutions and national lending product lines that further diversify our lending operations.

Commercial finance loans are further summarized below:

                
  June 30,  March 31,  December 31,  September 30,  June 30, 
(Dollars in thousands) 2019  2019  2018  2018  2018 
Commercial - Equipment $395,094  $364,447  $352,037  $323,832  $290,314 
Commercial - Asset-based lending  208,896   174,447   214,110   273,096   261,412 
Factored receivables  583,131   570,663   617,791   611,285   603,812 
Commercial finance $1,187,121  $1,109,557  $1,183,938  $1,208,213  $1,155,538 
                     
Commercial finance % of total loans  31%  31%  33%  34%  36%
                     

National lending loans are further summarized below:

                
  June 30,  March 31,  December 31,  September 30,  June 30, 
(Dollars in thousands) 2019  2019  2018  2018  2018 
Mortgage warehouse $382,590  $307,375  $313,664  $276,358  $343,028 
Commercial - Liquid credit  21,758   960   963   966   968 
Commercial - Premium finance  72,898   77,389   72,302   75,293   51,416 
National lending $477,246  $385,724  $386,929  $352,617  $395,412 
                     
National lending % of total loans  12%  11%  11%  10%  12%
                     

Additional information pertaining to our loan portfolio, summarized for the quarters ended:

                
  June 30,  March 31,  December 31,  September 30,  June 30, 
(Dollars in thousands) 2019  2019  2018  2018  2018 
Average community banking $2,166,122  $2,103,816  $2,012,255  $1,748,936  $1,658,654 
Average commercial finance  1,168,110   1,123,978   1,190,586   1,184,064   978,239 
Average national lending  373,755   307,249   329,630   360,719   285,155 
Average total loans $3,707,987  $3,535,043  $3,532,471  $3,293,719  $2,922,047 
Community banking yield  5.88%  5.91%  5.82%  5.75%  5.97%
Commercial finance yield  12.52%  12.50%  12.82%  13.00%  12.48%
National lending yield  5.62%  5.73%  5.44%  5.54%  5.35%
Total loan yield  7.95%  7.99%  8.14%  8.33%  8.09%
                     

Information pertaining to our factoring segment, which includes only factoring originated by our Triumph Business Capital subsidiary, summarized as of and for the quarters ended:

                
  June 30,  March 31,  December 31,  September 30,  June 30, 
  2019  2019  2018  2018  2018 
Factored receivable period end balance $544,601,000  $534,420,000  $588,750,000  $579,985,000  $577,548,000 
Yield on average receivable balance  18.73%  17.96%  18.24%  18.96%  18.70%
Rolling twelve quarter annual charge-off rate  0.40%  0.39%  0.37%  0.38%  0.41%
Factored receivables - transportation concentration  83%  81%  83%  83%  84%
                     
Interest income, including fees $24,762,000  $23,803,000  $27,578,000  $27,420,000  $20,314,000 
Non-interest income  1,205,000   1,077,000   1,032,000   942,000   920,000 
Factored receivable total revenue  25,967,000   24,880,000   28,610,000   28,362,000   21,234,000 
Average net funds employed  483,203,000   490,241,000   547,996,000   525,499,000   398,096,000 
Yield on average net funds employed  21.55%  20.58%  20.71%  21.41%  21.39%
                     
Accounts receivable purchased $1,408,982,000  $1,325,140,000  $1,541,332,000  $1,503,049,000  $1,162,810,000 
Number of invoices purchased  874,248   789,838   882,042   836,771   656,429 
Average invoice size $1,612  $1,678  $1,747  $1,796  $1,771 
Average invoice size - transportation $1,492  $1,541  $1,625  $1,666  $1,695 
Average invoice size - non-transportation $3,047  $3,276  $3,209  $3,267  $2,522 
                     
Net new clients  73   191   259   422   2,072 
Period end clients  6,455   6,382   6,191   5,932   5,510 
                     

Deposits summarized as of:

                
  June 30,  March 31,  December 31,  September 30,  June 30, 
(Dollars in thousands) 2019  2019  2018  2018  2018 
Non-interest bearing demand $684,223  $667,597  $724,527  $697,903  $561,033 
Interest bearing demand  587,164   602,088   615,704   608,775   358,246 
Individual retirement accounts  111,328   112,696   115,583   118,459   101,380 
Money market  440,289   372,109   443,663   413,402   268,699 
Savings  362,594   372,914   369,389   373,062   239,127 
Certificates of deposit  1,122,873   851,411   835,127   854,048   751,290 
Brokered deposits  350,507   335,625   346,356   373,400   345,167 
Total deposits $3,658,978  $3,314,440  $3,450,349  $3,439,049  $2,624,942 
                     

Net interest margin summarized for the three months ended:

       
  June 30, 2019  March 31, 2019 
  Average      Average  Average      Average 
(Dollars in thousands) Balance  Interest  Rate  Balance  Interest  Rate 
Interest earning assets:                        
Interest earning cash balances $166,426  $1,022   2.46% $126,372  $778   2.50%
Taxable securities  287,607   2,317   3.23%  275,642   2,169   3.19%
Tax-exempt securities  61,712   350   2.28%  88,667   475   2.17%
FHLB stock  21,851   146   2.67%  17,860   192   4.36%
Loans  3,707,987   73,468   7.95%  3,535,043   69,650   7.99%
Total interest earning assets $4,245,583  $77,303   7.30% $4,043,584  $73,264   7.35%
Non-interest earning assets:                        
Other assets  449,064           458,176         
Total assets $4,694,647          $4,501,760         
Interest bearing liabilities:                        
Deposits:                        
Interest bearing demand $592,593  $391   0.26% $606,096  $374   0.25%
Individual retirement accounts  111,962   437   1.57%  113,636   405   1.45%
Money market  419,066   1,473   1.41%  408,953   1,331   1.32%
Savings  366,953   120   0.13%  370,067   123   0.13%
Certificates of deposit  1,006,950   5,568   2.22%  834,515   3,965   1.93%
Brokered deposits  337,086   2,021   2.40%  353,829   2,020   2.32%
Total deposits  2,834,610   10,010   1.42%  2,687,096   8,218   1.24%
Subordinated notes  48,967   839   6.87%  48,940   839   6.95%
Junior subordinated debentures  39,241   744   7.60%  39,125   760   7.88%
Other borrowings  368,455   2,291   2.49%  336,667   2,136   2.57%
Total interest bearing liabilities $3,291,273  $13,884   1.69% $3,111,828  $11,953   1.56%
Non-interest bearing liabilities and equity:                        
Non-interest bearing demand deposits  686,923           679,538         
Other liabilities  64,104           65,434         
Total equity  652,347           644,960         
Total liabilities and equity $4,694,647          $4,501,760         
Net interest income     $63,419          $61,311     
Interest spread          5.61%          5.79%
Net interest margin          5.99%          6.15%
                         

Metrics and non-GAAP financial reconciliation:

       
  As of and for the Three Months Ended  As of and for the Six Months Ended 
 (Dollars in thousands, June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30, 
 except per share amounts) 2019  2019  2018  2018  2018  2019  2018 
Net income available to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070 
Gain on sale of subsidiary or division                    (1,071)
Transaction related costs           5,871   1,094      1,094 
Tax effect of adjustments           (1,392)  (257)     (9)
Adjusted net income available to common stockholders $12,730  $14,788  $18,085  $13,454  $13,029  $27,518  $24,084 
Dilutive effect of convertible preferred stock           195   193      383 
Adjusted net income available to common stockholders - diluted $12,730  $14,788  $18,085  $13,649  $13,222  $27,518  $24,467 
                             
Weighted average shares outstanding - diluted  26,486,423   26,793,685   26,979,949   26,991,830   26,315,878   26,638,426   23,950,143 
Adjusted effects of assumed Preferred Stock conversion                     
Adjusted weighted average shares outstanding - diluted  26,486,423   26,793,685   26,979,949   26,991,830   26,315,878   26,638,426   23,950,143 
Adjusted diluted earnings per common share $0.48  $0.55  $0.67  $0.51  $0.50  $1.03  $1.02 
                             
Net income available to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070 
Average tangible common equity  456,346   446,571   428,748   470,553   491,492   451,485   409,509 
Return on average tangible common equity  11.19%  13.43%  16.73%  7.57%  9.95%  12.29%  11.85%
                             
Adjusted efficiency ratio:                            
Net interest income $63,419  $61,311  $64,881