Press Release

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

Company Release - 1/21/2020 4:07 PM ET

DALLAS, Jan. 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. 

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.  

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 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 
                             

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 
                     

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   2,136   1,482   8,562   6,776 
Total interest expense  14,763   14,650   13,884   11,953   10,969   55,250   35,926 
Net interest income  66,408   64,765   63,419   61,311   64,881   255,903   227,050 
Provision for loan losses  382   2,865   3,681   1,014   1,910   7,942   16,167 
Net interest income after provision for loan losses  66,026   61,900   59,738   60,297   62,971   247,961   210,883 
Non-interest income:                            
Service charges on deposits  1,889   1,937   1,700   1,606   1,702   7,132   5,469 
Card income  1,943   2,015   2,071   1,844   1,999   7,873   6,514 
Net OREO gains (losses) and valuation adjustments  50   (56)  148   209   37   351   (514)
Net gains (losses) on sale of securities  39   19   14   (11)     61   (272)
Fee income  1,686   1,624   1,519   1,612   1,636   6,441   5,150 
Insurance commissions  1,092   1,247   961   919   846   4,219   3,492 
Gain on sale of subsidiary                    1,071 
Other  1,967   956   1,210   1,359   574   5,492   2,060 
Total non-interest income  8,666   7,742   7,623   7,538   6,794   31,569   22,970 
Non-interest expense:                            
Salaries and employee benefits  29,586   28,717   28,120   26,439   25,586   112,862   90,212 
Occupancy, furniture and equipment  4,667   4,505   4,502   4,522   4,402   18,196   14,023 
FDIC insurance and other regulatory assessments  (302)  (2)  303   299   184   298   1,129 
Professional fees  1,904   1,969   1,550   1,865   1,837   7,288   8,939 
Amortization of intangible assets  2,154   2,228   2,347   2,402   2,438   9,131   6,980 
Advertising and promotion  1,347   1,379   1,796   1,604   1,036   6,126   4,974 
Communications and technology  5,732   5,382   4,988   4,874   4,388   20,976   18,270 
Other  7,573   7,975   7,098   6,561   7,091   29,207   22,826 
Total non-interest expense  52,661   52,153   50,704   48,566   46,962   204,084   167,353 
Net income before income tax  22,031   17,489   16,657   19,269   22,803   75,446   66,500 
Income tax expense  5,322   3,172   3,927   4,481   4,718   16,902   14,792 
Net income $16,709  $14,317  $12,730  $14,788  $18,085  $58,544  $51,708 
Dividends on preferred stock                    (578)
Net income available to common stockholders $16,709  $14,317  $12,730  $14,788  $18,085  $58,544  $51,130 
                             

Earnings per share:

  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 
Basic                            
Net income to common stockholders $16,709  $14,317  $12,730  $14,788  $18,085  $58,544  $51,130 
Weighted average common shares outstanding  25,089,447   25,621,054   26,396,351   26,679,724   26,666,554   25,941,395   24,791,448 
Basic earnings per common share $0.67  $0.56  $0.48  $0.55  $0.68  $2.26  $2.06 
                             
Diluted                            
Net income to common stockholders $16,709  $14,317  $12,730  $14,788  $18,085  $58,544  $51,130 
Dilutive effect of preferred stock                    578 
Net income to common stockholders - diluted $16,709  $14,317  $12,730  $14,788  $18,085  $58,544  $51,708 
Weighted average common shares outstanding  25,089,447   25,621,054   26,396,351   26,679,724   26,666,554   25,941,395   24,791,448 
Dilutive effects of:                            
Assumed conversion of Preferred A              89,240      258,674 
Assumed conversion of Preferred B              100,176      290,375 
Assumed exercises of stock options  69,865   60,068   59,962   64,166   76,219   63,808   84,126 
Restricted stock awards  70,483   45,631   30,110   49,795   46,457   47,242   52,851 
Restricted stock units  13,264   3,045         1,303   3,441   3,039 
Performance stock units - market based  11,803   4,673            4,119    
Performance stock units - performance based                     
Weighted average shares outstanding - diluted  25,254,862   25,734,471   26,486,423   26,793,685   26,979,949   26,060,005   25,480,513 
Diluted earnings per common share $0.66  $0.56  $0.48  $0.55  $0.67  $2.25  $2.03 
                             
                             
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 Years Ended 
  December 31,  September 30,  June 30,  March 31,  December 31,  December 31,  December 31, 
  2019  2019  2019  2019  2018  2019  2018 
Assumed conversion of Preferred A                     
Assumed conversion of Preferred B                     
Stock options  66,019   67,023   70,037   50,752   51,952   66,019   51,952 
Restricted stock awards     3,209      13,290   14,513       
Restricted stock units        58,400   58,400          
Performance stock units - market based  55,228   55,228   70,879   58,400   59,658   55,228   59,658 
Performance stock units - performance based  254,000               254,000    
                             

Loans held for investment summarized as of:

  December 31,  September 30,  June 30,  March 31,  December 31, 
(Dollars in thousands) 2019  2019  2019  2019  2018 
Commercial real estate $1,046,961  $1,115,559  $1,098,279  $1,093,882  $992,080 
Construction, land development, land  160,569   164,186   157,861   145,002   179,591 
1-4 family residential properties  179,425   186,405   186,070   194,067   190,185 
Farmland  154,975   161,447   144,594   156,299   170,540 
Commercial  1,342,683   1,369,505   1,257,330   1,117,640   1,114,971 
Factored receivables  619,986   599,651   583,131   570,663   617,791 
Consumer  21,925   24,967   26,048   27,941   29,822 
Mortgage warehouse  667,988   587,697   382,590   307,375   313,664 
Total loans $4,194,512  $4,209,417  $3,835,903  $3,612,869  $3,608,644 
                     

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:

  December 31,  September 30,  June 30,  March 31,  December 31, 
(Dollars in thousands) 2019  2019  2019  2019  2018 
Commercial - Equipment $461,555  $429,412  $395,094  $364,447  $352,037 
Commercial - Asset-based lending  168,955   247,026   208,896   174,447   214,110 
Factored receivables  619,986   599,651   583,131   570,663   617,791 
Commercial finance $1,250,496  $1,276,089  $1,187,121  $1,109,557  $1,183,938 
                     
Commercial finance % of total loans  30%  30%  31%  31%  33%
                     

National lending loans are further summarized below:

  December 31,  September 30,  June 30,  March 31,  December 31, 
(Dollars in thousands) 2019  2019  2019  2019  2018 
Mortgage warehouse $667,988  $587,697  $382,590  $307,375  $313,664 
Commercial - Liquid credit  81,353   37,386   21,758   960   963 
Commercial - Premium finance  101,015   101,562   72,898   77,389   72,302 
National lending $850,356  $726,645  $477,246  $385,724  $386,929 
                     
National lending % of total loans  20%  17%  12%  11%  11%
                     

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

  December 31,  September 30,  June 30,  March 31,  December 31, 
(Dollars in thousands) 2019  2019  2019  2019  2018 
Average community banking $2,170,149  $2,193,533  $2,166,122  $2,103,816  $2,012,255 
Average commercial finance  1,260,000   1,208,823   1,168,110   1,123,978   1,190,586 
Average national lending  704,244   541,367   373,755   307,249   329,630 
Average total loans $4,134,393  $3,943,723  $3,707,987  $3,535,043  $3,532,471 
Community banking yield  5.89%  5.79%  5.88%  5.91%  5.82%
Commercial finance yield  11.64%  12.31%  12.52%  12.50%  12.82%
National lending yield  4.96%  4.63%  5.62%  5.73%  5.44%
Total loan yield  7.48%  7.63%  7.95%  7.99%  8.14%
                     

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:

  December 31,  September 30,  June 30,  March 31,  December 31, 
  2019  2019  2019  2019  2018 
Factored receivable period end balance $573,372,000  $562,009,000  $544,601,000  $534,420,000  $588,750,000 
Yield on average receivable balance  17.20%  18.23%  18.73%  17.96%  18.24%
Rolling twelve quarter annual charge-off rate  0.39%  0.36%  0.40%  0.39%  0.37%
Factored receivables - transportation concentration  81%  83%  83%  81%  83%
                     
Interest income, including fees $24,813,000  $24,869,000  $24,762,000  $23,803,000  $27,578,000 
Non-interest income  1,154,000   1,291,000   1,205,000   1,077,000   1,032,000 
Factored receivable total revenue  25,967,000   26,160,000   25,967,000   24,880,000   28,610,000 
Average net funds employed  524,546,000   494,198,000   483,203,000   490,241,000   547,996,000 
Yield on average net funds employed  19.64%  21.00%  21.55%  20.58%  20.71%
                     
Accounts receivable purchased $1,489,538,000  $1,450,905,000  $1,408,982,000  $1,325,140,000  $1,541,332,000 
Number of invoices purchased  896,487   890,986   874,248   789,838   882,042 
Average invoice size $1,662  $1,628  $1,612  $1,678  $1,747 
Average invoice size - transportation $1,507  $1,497  $1,492  $1,541  $1,625 
Average invoice size - non-transportation $3,891  $3,467  $3,047  $3,276  $3,209 

Deposits summarized as of:

  December 31,  September 30,  June 30,  March 31,  December 31, 
(Dollars in thousands) 2019  2019  2019  2019  2018 
Non-interest bearing demand $809,696  $754,233  $684,223  $667,597  $724,527 
Interest bearing demand  580,323   587,123   587,164   602,088   615,704 
Individual retirement accounts  104,472   108,593   111,328   112,696   115,583 
Money market  497,105   424,162   440,289   372,109   443,663 
Savings  363,270   356,368   362,594   372,914   369,389 
Certificates of deposit  1,084,425   1,120,850   1,122,873   851,411   835,127 
Brokered deposits  350,615   346,504   350,507   335,625   346,356 
Total deposits $3,789,906  $3,697,833  $3,658,978  $3,314,440  $3,450,349 
                     

Net interest margin summarized for the three months ended:

  December 31, 2019  September 30, 2019 
  Average      Average  Average      Average 
(Dollars in thousands) Balance  Interest  Rate  Balance  Interest  Rate 
Interest earning assets:                        
Interest earning cash balances $153,160  $659   1.71% $104,569  $603   2.29%
Taxable securities  254,255   2,157   3.37%  278,878   2,495   3.55%
Tax-exempt securities  37,680   222   2.34%  48,685   289   2.36%
FHLB and other restricted stock  25,599   165   2.56%  19,698   209   4.21%
Loans  4,134,393   77,968   7.48%  3,943,723   75,819   7.63%
Total interest earning assets $4,605,087  $81,171   6.99% $4,395,553  $79,415   7.17%
Non-interest earning assets:                        
Other assets  445,773           444,987         
Total assets $5,050,860          $4,840,540         
Interest bearing liabilities:                        
Deposits:                        
Interest bearing demand $588,590  $373   0.25% $585,706  $355   0.24%
Individual retirement accounts  106,645   435   1.62%  110,049   454   1.64%
Money market  490,438   1,542   1.25%  416,526   1,406   1.34%
Savings  359,024   119   0.13%  359,169   117   0.13%
Certificates of deposit  1,108,647   6,491   2.32%  1,113,006   6,588   2.35%
Brokered deposits  350,737   2,001   2.26%  352,430   2,116   2.38%
Total interest bearing deposits  3,004,081   10,961   1.45%  2,936,886   11,036   1.49%
Subordinated notes  63,706   1,035   6.45%  48,994   840   6.80%
Junior subordinated debentures  39,491   687   6.90%  39,364   719   7.25%
Other borrowings  438,447   2,080   1.88%  364,950   2,055   2.23%
Total interest bearing liabilities $3,545,725  $14,763   1.65% $3,390,194  $14,650   1.71%
Non-interest bearing liabilities and equity:                        
Non-interest bearing demand deposits  791,379           735,527         
Other liabilities  66,210           68,778         
Total equity  647,546           646,041         
Total liabilities and equity $5,050,860          $4,840,540         
Net interest income     $66,408          $64,765     
Interest spread          5.34%          5.46%
Net interest margin          5.72%          5.85%

   Loan balance totals include respective nonaccrual assets.
   Net interest spread is the yield on average interest earning assets less the rate on interest bearing liabilities.
   Net interest margin is the ratio of net interest income to average interest earning assets.
   Average rates have been annualized.


Metrics and non-GAAP financial reconciliation:

  As of and for the Three Months Ended  As of and for the Years Ended 
(Dollars in thousands, December 31,  September 30,  June 30,  March 31,  December 31,  December 31,  December 31, 
 except per share amounts) 2019  2019  2019  2019  2018  2019  2018 
Net income available to common stockholders $16,709  $14,317  $12,730  $14,788  $18,085  $58,544  $51,130 
Gain on sale of subsidiary or division                    (1,071)
Transaction related costs                    6,965 
Tax effect of adjustments                    (1,401)
Adjusted net income available to common stockholders $16,709  $14,317  $12,730  $14,788  $18,085  $58,544  $55,623 
Dilutive effect of convertible preferred stock                    578 
Adjusted net income available to common stockholders - diluted $16,709  $14,317  $12,730  $14,788  $18,085  $58,544  $56,201 
                             
Weighted average shares outstanding - diluted  25,254,862   25,734,471   26,486,423   26,793,685   26,979,949   26,060,005   25,480,513 
Adjusted effects of assumed Preferred Stock conversion                     
Adjusted weighted average shares outstanding - diluted  25,254,862   25,734,471   26,486,423   26,793,685   26,979,949   26,060,005   25,480,513 
Adjusted diluted earnings per common share $0.66  $0.56  $0.48  $0.55  $0.67  $2.25  $2.21 
                             
Average total stockholders' equity $647,546  $646,041  $652,347  $644,960  $632,126  $647,726  $559,450 
Average preferred stock liquidation preference              2,624      7,885 
Average total common stockholders' equity  647,546   646,041   652,347   644,960   629,502   647,726   551,565 
Average goodwill and other intangibles  191,551   193,765   196,002   198,389   200,754   194,905   121,820 
Average tangible common stockholders' equity $455,995  $452,276  $456,346  $446,571  $428,748  $452,821  $429,745 
                             
Net income available to common stockholders $16,709  $14,317  $12,730  $14,788  $18,085  $58,544  $51,130 
Average tangible common equity  455,995   452,276   456,346   446,571   428,748   452,821   429,745 
Return on average tangible common equity  14.54%  12.56%  11.19%  13.43%  16.73%  12.93%  11.90%
                             
Adjusted efficiency ratio:                            
Net interest income $66,408  $64,765  $63,419  $61,311  $64,881  $255,903  $227,050 
Non-interest income  8,666   7,742   7,623   7,538   6,794   31,569   22,970 
Operating revenue  75,074   72,507   71,042   68,849   71,675   287,472  <