GREENSBORO, N.C., Feb. 25, 2025 /PRNewswire/ --
Overview
For the fourth quarter of 2024, Triad Business Bank (the "Bank") had provision for credit loss expense of $1.7 million which included the establishment of a $1.1 million reserve for a corporate bond. Following the provision, net loss for the quarter totaled $1.4 million. Ramsey Hamadi, Chief Executive Officer, commented, "The Bank holds a corporate bond that recently lost its investment grade, and its current value indicates there may be a credit issue. Therefore, until there is better clarity, the Bank established the $1.1 million reserve."
Hamadi continued, "Total regulatory capital continued to be strong at year end, totaling $63.1 million or 12.78% of risk weighted assets. The Bank reported a $777,000 improvement in core operating income (net income before provision for credit losses and tax expense, a non-GAAP measurement) over the fourth quarter of 2023. The Bank had core operating income of $299,000 in the fourth quarter of 2024 compared to a core operating loss of $478,000 in the fourth quarter of 2023. The Bank continued several positive trends by executing on key initiatives, including reducing operating expenses, narrowing its sales focus, solidifying its unaffiliated core deposits base, and expanding its margins. Noninterest expense declined $368,000 for the quarter ended December 31, 2024 as compared to the quarter ended December 31, 2023 due primarily to lower employee compensation expense and the pausing of director compensation. Net interest income increased $376,000 on a wider net interest margin and a growing balance sheet."
Hamadi continued, "In the third quarter, the Bank reported its first nonaccruing commercial loan relationship of $1.5 million. In the fourth quarter, after liquidating some and repossessing the remainder of the industrial equipment collateral, the Bank charged off $998,000. These activities contributed to the $1.7 million provision for credit losses in the fourth quarter. Following this charged off relationship, the Bank has no nonperforming loans."
Fourth Quarter Income Statement Comparison
The Bank's net loss totaled $1.4 million for the quarter ended December 31, 2024 compared to a net loss of $800,000 for the same quarter of 2023. Core operating income, a non-GAAP measure, was $299,000 for the quarter compared to a core operating loss, a non-GAAP measure, of $478,000 for the fourth quarter of 2023.
Net interest income increased $376,000 to $3.0 million for the fourth quarter from $2.6 million for the fourth quarter of 2023. The Bank's net interest margin increased 18 basis points to 2.27% from 2.09% for the prior year quarter.
Fourth quarter interest income increased $529,000, or 8%, to $7.0 million compared to $6.4 million in the fourth quarter of 2023. The growth in interest income year over year was due primarily to the growth in average loans, which increased $39.7 million during the year to $372.9 million, and an increase in the weighted average yield on average loans to 6.05% in the fourth quarter of 2024 compared to 5.78% in the fourth quarter of 2023. The weighted average rate on interest-bearing liabilities increased 18 basis points to 4.37% in the fourth quarter of 2024 compared to 4.19% in the same quarter of 2023.
Noninterest income increased $33,000, or 11%, to $334,000 in the fourth quarter compared to $301,000 in the fourth quarter of 2023. Noninterest income for the fourth quarter of 2024 included a one-time bonus dividend on a small business investment company ("SBIC") investment of $92,000, while the previous year quarter included gain on sale of loans of $100,000.
Fourth quarter 2024 noninterest expense decreased $368,000, or 11%, from the same quarter in 2023 due primarily to the expense reduction initiative commenced in the second quarter of 2024. Salaries and benefits expense decreased $396,000, or 17%, in the fourth quarter of 2024 compared to the prior year period. The Bank had 56 employees at the end of 2024 compared to 62 employees at the end of 2023. Other operating expenses increased $35,000 over the previous year quarter due principally to increased FDIC insurance assessment expense.
Annual Income Statement Comparison
The Bank's net loss totaled $2.8 million, or $(0.38) per diluted share, for the year ended December 31, 2024 compared to a net loss of $4.3 million, or $(0.65) per diluted share, for the year ended December 31, 2023. Core operating loss, a non-GAAP measure, was $510,000 for 2024 compared to $1.4 million for the prior year.
Net interest income increased $635,000 to $11.2 million for the year ended December 31, 2024 from $10.6 million for the prior year. The Bank's net interest margin decreased to 2.18% for 2024 from 2.22% for 2023.
Interest income increased $4.6 million, or 20%, to $27.9 million for the year ended December 31, 2024 compared to $23.3 million for the prior year. The growth in interest income was due primarily to the growth in average loans, which increased $53.1 million during the year to $363.2 million, and an increase in the weighted average yield on average loans to 6.10% compared to 5.51% for the year ended December 31, 2023. The weighted average rate on interest-bearing liabilities increased to 4.45% for 2024 compared to 3.72% for the prior year.
Noninterest income increased $194,000, or 22%, to $1.1 million for the year ended December 31, 2024 compared to $873,000 for the prior year. Noninterest income for 2024 included a one-time bonus dividend on a SBIC investment of $92,000, interest rate swap fee income of $83,000, and a one-time loss of $136,000 on the sale of a SBIC investment.
Noninterest expense decreased $66,000 for the year ended December 31, 2024 from the prior year resulting predominantly from the Bank's expense reduction initiative. In connection with this initiative, a one-time severance expense of $87,000 was recognized in 2024. Salaries and benefits expense decreased $486,000, or 6%, for the year ended December 31, 2024 compared to the year ended December 31, 2023. Other operating expenses increased $344,000, or 9%, for 2024 over the previous year due principally to increased FDIC insurance assessment expense.
Annual Balance Sheet Comparison
Total assets increased $14.0 million from $511.2 million at December 31, 2023 to $525.2 million at December 31, 2024. During 2024, loans increased $39.5 million to $373.7 million and deposits decreased $5.0 million to $455.4 million. The decrease in deposits was primarily due to a $4.7 million reduction in brokered deposits during 2024. Other borrowings increased $15.0 million to $24.0 million at December 31, 2024 from $9.0 million at December 31, 2023.
Shareholders' equity increased $4.6 million during the year ended December 31, 2024 to $42.2 million. The Bank completed a $6.0 million common stock offering in June 2024. Accumulated other comprehensive income/loss ("AOCI") improved to $16.3 million at December 31, 2024 compared to $17.3 million at December 31, 2023. The AOCI loss is expected to reverse as the bond portfolio shortens in life and is assumed to mature at par value.
Regulatory Capital
Total risk-based capital consists of tier 1 capital and tier 2 capital. The Bank's tier 1 capital is largely a measure of shareholders' equity as calculated under GAAP but eliminates certain volatile elements such as AOCI loss. Tier 2 capital is primarily the allowance for credit losses on funded and unfunded commitments. Tier 1 and tier 2 capital ratios are measured against total assets and risk-weighted assets.
The following is a summary presentation of the Bank's total regulatory capital to risk-weighted assets, tier 1 capital to risk-weighted assets and tier 1 capital to average assets in comparison with the regulatory guidelines at December 31, 2024:
Capital and Capital Ratios
Quarter Ended | |||||||
12/31/2024 | |||||||
Amount | Ratio | ||||||
Actual | |||||||
(dollars in thousands) | |||||||
Total Capital (to risk-weighted assets) | $ 63,107 | 12.78 % | |||||
Tier 1 Capital (to risk-weighted assets) | $ 58,563 | 11.86 % | |||||
Tier 1 Capital (to average assets) | $ 58,563 | 10.79 % | |||||
Minimum To Be Well-Capitalized Under | |||||||
Prompt Corrective Action Provisions | |||||||
(dollars in thousands) | |||||||
Total Capital (to risk-weighted assets) | $ 49,000 | 10.00 % | |||||
Tier 1 Capital (to risk-weighted assets) | $ 40,000 | 8.00 % | |||||
Tier 1 Capital (to average assets) | $ 27,000 | 5.00 % | |||||
Loans
The Bank's outstanding loans increased $39.5 million, or 12%, to $373.7 million at December 31, 2024 compared to $334.1 million at December 31, 2023. While not included in loans outstanding, the Bank also had unfunded loan commitments of $134.2 million, bringing total loans outstanding and unfunded commitments to $507.9 million at December 31, 2024. For internal monitoring purposes, the Bank considers owner-occupied real estate loans to be part of commercial and industrial ("C&I") loans. As of December 31, 2024, approximately 51% of the Bank's outstanding loan portfolio was composed of C&I loans:
Loan Diversification
Quarter Ended | Percentage of | |||
Loan Category | 12/31/2024 | Loan Portfolio | ||
Other Construction & Land Development | $ 62,205,197 | |||
Nonowner-occupied Commercial Real Estate | 120,189,402 | |||
Total Commercial Real Estate | 182,394,599 | 49 % | ||
Owner-occupied Real Estate | 104,076,085 | |||
C&I | 85,547,728 | |||
Total C&I | 189,623,813 | 51 % | ||
Other Revolving Loans | 1,655,313 | 0 % | ||
Total | $ 373,673,725 |
Credit Risk and Allowance for Credit Losses
The Bank had no nonaccrual loans at December 31, 2024 or December 31, 2023. In the third quarter, the Bank reported its first nonaccruing commercial loan relationship of $1.5 million. In the fourth quarter, after liquidating some of the industrial equipment collateral, the Bank repossessed the remainder with an estimated value of $305,000 and charged off $998,000. The provision for credit losses was $1.7 million for the fourth quarter and $2.3 million for the year ended December 31, 2024 which included $1.1 million related to investment securities. The provision for credit losses was $323,000 for the fourth quarter of 2023 and $2.9 million for the year ended December 31, 2023.
The allowance for credit losses on loans was $4.1 million at December 31, 2024 compared to $3.7 million at December 31, 2023, which were 1.09% and 1.12% of outstanding loans, respectively. The allowance for credit losses on unfunded loan commitments, recorded as a liability on the balance sheet, was $458,000 at December 31, 2024 compared to $678,000 at December 31, 2023, which were 0.34% and 0.50% of unfunded commitments, respectively.
Deferred Tax Asset and AOCI (Non-GAAP Measures)
The Bank's GAAP tangible book value per share was $5.28 at December 31, 2024. On a non-GAAP basis, excluding the AOCI loss and the impairment on the Bank's deferred tax asset (two reductions in capital the Bank anticipates it will recover over time), adjusted tangible book value per share was $7.71 at December 31, 2024.
The organization and startup costs incurred during the Bank's organizational period and net operating losses from the beginning of operations created a deferred tax asset of $3.1 million. This asset is currently fully impaired and will be carried at $0 until sufficient, verifiable evidence exists (generally, sustained profitability) to demonstrate that the deferred tax asset will more likely than not be realized. At that time, the valuation allowance will be reversed.
The change in value of the Bank's investment securities that are available for sale is recorded in AOCI as a gain or loss, based on current circumstances, and constitutes an unrealized component of equity. At December 31, 2024, the Bank had an aggregate AOCI loss of $16.3 million. Assuming the underlying investment securities are held to maturity and there are no credit losses, the value of the securities will return to their face values at maturity. Therefore, as a non-GAAP measure, the Bank eliminates its current AOCI loss to reflect an adjusted tangible book value.
Outlook
The Federal Reserve lowered the federal funds target rate by 50 basis points in September, 25 basis points in November and another 25 basis points in December of 2024 and signaled additional rate reductions would be considered. We expect the Bank's net interest margin to steadily rise over the next two years although there could be some compression in the margin in the near term.
About Triad Business Bank
With three co-equal offices located in Winston-Salem, High Point and Greensboro, Triad Business Bank focuses on meeting the needs of small to midsize businesses and their owners by providing loans, treasury management and private banking, all with a high level of personal attention and best-in-class technology. For more information, visit www.triadbusinessbank.com.
Non-GAAP Financial Measures
This release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States ("GAAP"). The management of Triad Business Bank uses these non-GAAP financial measures in its analysis of the Bank's performance. These measures typically adjust GAAP performance measures to exclude the effects of the provision for credit losses, income tax, deferred tax asset, and AOCI. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Bank. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Forward Looking Language
This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Triad Business Bank. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of Triad Business Bank and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate" and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Triad Business Bank undertakes no obligation to update any forward-looking statements.
Triad Business Bank | |||||||||||||
Balance Sheet (Unaudited) | December 31, 2024 | December 31, 2023 | $ Change | % Change | |||||||||
Assets | |||||||||||||
Cash & Due from Banks | $ 23,947,020 | $ 33,610,971 | $ (9,663,951) | -29 % | |||||||||
Securities | 122,762,837 | 137,537,443 | (14,774,606) | -11 % | |||||||||
Federal Funds Sold | - | - | - | 0 % | |||||||||
Loans | 373,673,725 | 334,142,073 | 39,531,652 | 12 % | |||||||||
Allowance for Credit Losses ("ACL") | (4,085,896) | (3,729,925) | (355,971) | -10 % | |||||||||
Loans, Net | 369,587,829 | 330,412,148 | 39,175,681 | 12 % | |||||||||
Other Assets | 8,862,991 | 9,591,119 | (728,128) | -8 % | |||||||||
Total Assets | $ 525,160,677 | $ 511,151,681 | $ 14,008,996 | 3 % | |||||||||
Liabilities | |||||||||||||
Demand Deposits | $ 92,613,735 | $ 99,389,815 | $ (6,776,080) | -7 % | |||||||||
ICS Reciprocal - Checking | 2,713,755 | 14,204,733 | (11,490,978) | -81 % | |||||||||
Commercial Operating Accounts | 95,327,490 | 113,594,548 | (18,267,058) | -16 % | |||||||||
Interest-bearing NOW | 22,378,016 | 22,518,830 | (140,814) | -1 % | |||||||||
Core MMA & Savings | 88,468,843 | 85,891,021 | 2,577,822 | 3 % | |||||||||
ICS Reciprocal - MMA | 65,089,274 | 76,963,368 | (11,874,094) | -15 % | |||||||||
Total MMA & Savings | 153,558,117 | 162,854,389 | (9,296,272) | -6 % | |||||||||
Core Time Deposits | 29,332,254 | 11,019,913 | 18,312,341 | 166 % | |||||||||
CDARS - Reciprocal | 19,709,000 | 10,601,322 | 9,107,678 | 86 % | |||||||||
Brokered CDs | 135,142,064 | 139,859,453 | (4,717,389) | -3 % | |||||||||
Total Time Deposits | 184,183,318 | 161,480,688 | 22,702,630 | 14 % | |||||||||
Total Deposits | 455,446,941 | 460,448,455 | (5,001,514) | -1 % | |||||||||
Other Borrowings | 24,000,000 | 9,000,000 | 15,000,000 | 167 % | |||||||||
Federal Funds Purchased | - | - | - | 0 % | |||||||||
ACL on Unfunded Commitments | 458,381 | 678,444 | (220,063) | -32 % | |||||||||
Other Liabilities | 3,031,561 | 3,422,078 | (390,517) | -11 % | |||||||||
Total Liabilities | 482,936,883 | 473,548,977 | 9,387,906 | 2 % | |||||||||
Shareholders' Equity | |||||||||||||
Common Stock | 73,172,267 | 66,692,747 | 6,479,520 | 10 % | |||||||||
Accumulated Deficit | (14,609,619) | (11,779,488) | (2,830,131) | -24 % | |||||||||
Accumulated Other Comprehensive Loss | (16,338,854) | (17,310,555) | 971,701 | 6 % | |||||||||
Total Shareholders' Equity | 42,223,794 | 37,602,704 | 4,621,090 | 12 % | |||||||||
Total Liabilities & Shareholders' Equity | $ 525,160,677 | $ 511,151,681 | $ 14,008,996 | 3 % | |||||||||
Shares Outstanding | 7,993,969 | 6,695,121 | 1,298,848 | 19 % | |||||||||
Tangible Book Value per Share | $ 5.28 | $ 5.62 | $ (0.34) | -6 % | |||||||||
Triad Business Bank | ||||||||||||||
Income Statement (Unaudited) | For the Year Ended | For the Year Ended | ||||||||||||
December 31, 2024 | December 31, 2023 | $ Change | % Change | |||||||||||
Interest Income | ||||||||||||||
Interest & Fees on Loans | $ 22,137,727 | $ 17,093,432 | $ 5,044,295 | 30 % | ||||||||||
Interest & Dividend Income on Securities | 4,271,488 | 4,444,100 | (172,612) | -4 % | ||||||||||
Interest Income on Balances Due from Banks | 1,176,179 | 1,427,873 | (251,694) | -18 % | ||||||||||
Other Interest Income | 304,781 | 302,034 | 2,747 | 1 % | ||||||||||
Total Interest Income | 27,890,175 | 23,267,439 | 4,622,736 | 20 % | ||||||||||
Interest Expense | ||||||||||||||
Interest on Checking Deposits | 843,257 | 729,355 | 113,902 | 16 % | ||||||||||
Interest on Savings & MMA Deposits | 5,397,173 | 5,664,205 | (267,032) | -5 % | ||||||||||
Interest on Time Deposits | 9,398,669 | 5,258,833 | 4,139,836 | 79 % | ||||||||||
Interest on Federal Funds Purchased | 155 | 169 | (14) | -8 % | ||||||||||
Interest on Borrowings | 784,230 | 752,474 | 31,756 | 4 % | ||||||||||
Other Interest Expense | 222,385 | 252,775 | (30,390) | -12 % | ||||||||||
Total Interest Expense | 16,645,869 | 12,657,811 | 3,988,058 | 32 % | ||||||||||
Net Interest Income | 11,244,306 | 10,609,628 | 634,678 | 6 % | ||||||||||
Provision for Credit Losses | 2,319,964 | 2,915,181 | (595,217) | -20 % | ||||||||||
Net Interest Income After Provision for CL | 8,924,342 | 7,694,447 | 1,229,895 | 16 % | ||||||||||
Total Noninterest Income | 1,067,025 | 872,921 | 194,104 | 22 % | ||||||||||
Noninterest Expense | ||||||||||||||
Salaries & Benefits | 8,119,171 | 8,604,883 | (485,712) | -6 % | ||||||||||
Severance - One-time Expense | 87,156 | - | 87,156 | 100 % | ||||||||||
Premises & Equipment | 522,210 | 533,857 | (11,647) | -2 % | ||||||||||
Total Other Noninterest Expense | 4,092,961 | 3,748,468 | 344,493 | 9 % | ||||||||||
Total Noninterest Expense | 12,821,498 | 12,887,208 | (65,710) | -1 % | ||||||||||
Income (Loss) Before Income Tax | (2,830,131) | (4,319,840) | 1,489,709 | 34 % | ||||||||||
Income Tax | - | - | - | 0 % | ||||||||||
Net Income (Loss) | $ (2,830,131) | $ (4,319,840) | $ 1,489,709 | 34 % | ||||||||||
Net Income (Loss) per Share | ||||||||||||||
Basic | $ (0.38) | $ (0.65) | $ 0.27 | 41 % | ||||||||||
Diluted | $ (0.38) | $ (0.65) | $ 0.27 | 41 % | ||||||||||
Weighted Average Shares Outstanding | ||||||||||||||
Basic | 7,372,953 | 6,653,922 | 719,031 | 11 % | ||||||||||
Diluted | 7,372,953 | 6,653,922 | 719,031 | 11 % | ||||||||||
Pre-provision, Pre-tax Income (Loss) | $ (510,167) | $ (1,404,659) | $ 894,492 | 64 % | ||||||||||
Triad Business Bank | |||||||||||||||
Key Ratios & Other Information (Unaudited) | |||||||||||||||
Year Ended | Year Ended | ||||||||||||||
12/31/2024 | 12/31/2023 | ||||||||||||||
Interest | Interest | ||||||||||||||
Income/ | Yield/ | Income/ | Yield/ | ||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||
Yield on Average Loans | $ 363,211,812 | $ 22,137,727 | 6.095 % | $ 310,144,916 | $ 17,093,432 | 5.511 % | |||||||||
Yield on Average Investment Securities | $ 129,941,625 | $ 4,271,488 | 3.287 % | $ 137,782,738 | $ 4,444,100 | 3.225 % | |||||||||
Yield on Average Interest-earning Assets | $ 516,449,158 | $ 27,890,175 | 5.400 % | $ 477,415,732 | $ 23,267,439 | 4.874 % | |||||||||
Cost of Average Interest-bearing Liabilities | $ 374,250,222 | $ 16,645,869 | 4.448 % | $ 340,428,915 | $ 12,657,811 | 3.718 % | |||||||||
Net Interest Margin | |||||||||||||||
Interest Income | $ 27,890,175 | $ 23,267,439 | |||||||||||||
Interest Expense | 16,645,869 | 12,657,811 | |||||||||||||
Average Earnings Assets | $ 516,449,158 | $ 477,415,732 | |||||||||||||
Net Interest Income & Net Interest Margin | $ 11,244,306 | 2.177 % | $ 10,609,628 | 2.222 % | |||||||||||
Loan to Asset Ratio | |||||||||||||||
Loan Balance | $ 373,673,725 | $ 334,142,073 | |||||||||||||
Total Assets | 525,160,677 | 71.154 % | 511,151,681 | 65.370 % | |||||||||||
Leverage Ratio | |||||||||||||||
Tier 1 Capital | $ 58,562,648 | $ 54,913,259 | |||||||||||||
Average Total Assets | 542,857,151 | 10.788 % | 521,794,894 | 10.524 % | |||||||||||
Unfunded Commitments to Extend Credit | $ 134,193,703 | $ 135,959,421 | |||||||||||||
Standby Letters of Credit | 186,252 | 186,252 | |||||||||||||
Triad Business Bank | ||||||||||||||
Income Statement (Unaudited) | For Three Months Ended | For Three Months Ended | ||||||||||||
December 31, 2024 | December 31, 2023 | $ Change | % Change | |||||||||||
Interest Income | ||||||||||||||
Interest & Fees on Loans | $ 5,673,515 | $ 4,853,516 | $ 819,999 | 17 % | ||||||||||
Interest & Dividend Income on Securities | 1,011,942 | 1,170,658 | (158,716) | -14 % | ||||||||||
Interest Income on Balances Due from Banks | 222,737 | 322,412 | (99,675) | -31 % | ||||||||||
Other Interest Income | 51,342 | 83,452 | (32,110) | -38 % | ||||||||||
Total Interest Income | 6,959,536 | 6,430,038 | 529,498 | 8 % | ||||||||||
Interest Expense | ||||||||||||||
Interest on Checking Deposits | 202,209 | 233,811 | (31,602) | -14 % | ||||||||||
Interest on Savings & MMA Deposits | 1,222,203 | 1,484,151 | (261,948) | -18 % | ||||||||||
Interest on Time Deposits | 2,379,797 | 1,829,874 | 549,923 | 30 % | ||||||||||
Interest on Federal Funds Purchased | - | - | - | 0 % | ||||||||||
Interest on Borrowings | 163,182 | 223,442 | (60,260) | -27 % | ||||||||||
Other Interest Expense | 24,831 | 67,927 | (43,096) | -63 % | ||||||||||
Total Interest Expense | 3,992,222 | 3,839,205 | 153,017 | 4 % | ||||||||||
Net Interest Income | 2,967,314 | 2,590,833 | 376,481 | 15 % | ||||||||||
Provision for Credit Losses | 1,669,709 | 322,715 | 1,346,994 | 417 % | ||||||||||
Net Interest Income After Provision for CL | 1,297,605 | 2,268,118 | (970,513) | -43 % | ||||||||||
Total Noninterest Income | 333,915 | 300,928 | 32,987 | 11 % | ||||||||||
Noninterest Expense | ||||||||||||||
Salaries & Benefits | 1,880,888 | 2,276,590 | (395,702) | -17 % | ||||||||||
Severance - One-time Expense | - | - | - | 0 % | ||||||||||
Premises & Equipment | 130,108 | 137,398 | (7,290) | -5 % | ||||||||||
Total Other Noninterest Expense | 990,711 | 955,551 | 35,160 | 4 % | ||||||||||
Total Noninterest Expense | 3,001,707 | 3,369,539 | (367,832) | -11 % | ||||||||||
Income (Loss) Before Income Tax | (1,370,187) | (800,493) | (569,694) | -71 % | ||||||||||
Income Tax | - | - | - | 0 % | ||||||||||
Net Income (Loss) | $ (1,370,187) | $ (800,493) | $ (569,694) | -71 % | ||||||||||
Net Income (Loss) per Share | ||||||||||||||
Basic | $ (0.17) | $ (0.12) | $ (0.05) | -43 % | ||||||||||
Diluted | $ (0.17) | $ (0.12) | $ (0.05) | -43 % | ||||||||||
Weighted Average Shares Outstanding | ||||||||||||||
Basic | 7,993,728 | 6,694,694 | 1,299,034 | 19 % | ||||||||||
Diluted | 7,993,728 | 6,694,694 | 1,299,034 | 19 % | ||||||||||
Pre-provision, Pre-tax Income (Loss) | $ 299,522 | $ (477,778) | $ 777,300 | 163 % | ||||||||||
Triad Business Bank | |||||||||||||||
Key Ratios & Other Information (Unaudited) | |||||||||||||||
Quarter Ended | Quarter Ended | ||||||||||||||
12/31/2024 | 12/31/2023 | ||||||||||||||
Interest | Interest | ||||||||||||||
Income/ | Yield/ | Income/ | Yield/ | ||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||
Yield on Average Loans | $ 372,850,408 | $ 5,673,515 | 6.054 % | $ 333,128,084 | $ 4,853,516 | 5.780 % | |||||||||
Yield on Average Investment Securities | $ 126,681,972 | $ 1,011,942 | 3.178 % | $ 134,652,018 | $ 1,170,658 | 3.449 % | |||||||||
Yield on Average Interest-earning Assets | $ 519,208,295 | $ 6,959,536 | 5.333 % | $ 492,038,846 | $ 6,430,038 | 5.185 % | |||||||||
Cost of Average Interest-bearing Liabilities | $ 363,454,917 | $ 3,992,222 | 4.370 % | $ 363,885,127 | $ 3,839,205 | 4.186 % | |||||||||
Net Interest Margin | |||||||||||||||
Interest Income | $ 6,959,536 | $ 6,430,038 | |||||||||||||
Interest Expense | 3,992,222 | 3,839,205 | |||||||||||||
Average Earnings Assets | $ 519,208,295 | $ 492,038,846 | |||||||||||||
Net Interest Income & Net Interest Margin | $ 2,967,314 | 2.274 % | $ 2,590,833 | 2.089 % | |||||||||||
Loan to Asset Ratio | |||||||||||||||
Loan Balance | $ 373,673,725 | $ 334,142,073 | |||||||||||||
Total Assets | 525,160,677 | 71.154 % | 511,151,681 | 65.370 % | |||||||||||
Leverage Ratio | |||||||||||||||
Tier 1 Capital | $ 58,562,648 | $ 54,913,259 | |||||||||||||
Average Total Assets | 542,857,151 | 10.788 % | 521,794,894 | 10.524 % | |||||||||||
Unfunded Commitments to Extend Credit | $ 134,193,703 | $ 135,959,421 | |||||||||||||
Standby Letters of Credit | 186,252 | 186,252 | |||||||||||||
Triad Business Bank | ||||||||||||||
Balance Sheet (Unaudited) | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||
Assets | ||||||||||||||
Cash & Due from Banks | $ 23,947,020 | $ 30,648,321 | $ 21,551,174 | $ 30,489,026 | $ 33,610,971 | |||||||||
Securities | 122,762,837 | 128,716,405 | 130,253,022 | 131,199,978 | 137,537,443 | |||||||||
Federal Funds Sold | - | - | - | - | - | |||||||||
Loans | 373,673,725 | 371,611,690 | 363,409,566 | 359,199,494 | 334,142,073 | |||||||||
Allowance for Credit Losses ("ACL") | (4,085,896) | (4,559,992) | (3,708,405) | (3,681,954) | (3,729,925) | |||||||||
Loans, Net | 369,587,829 | 367,051,698 | 359,701,161 | 355,517,540 | 330,412,148 | |||||||||
Other Assets | 8,862,991 | 8,760,394 | 9,915,475 | 9,943,701 | 9,591,119 | |||||||||
Total Assets | $ 525,160,677 | $ 535,176,818 | $ 521,420,832 | $ 527,150,245 | $ 511,151,681 | |||||||||
Liabilities | ||||||||||||||
Demand Deposits | $ 92,613,735 | $ 123,144,094 | $ 109,414,180 | $ 102,564,892 | $ 99,389,815 | |||||||||
ICS Reciprocal - Checking | 2,713,755 | 4,692,723 | 4,089 | 11,390,196 | 14,204,733 | |||||||||
Commercial Operating Accounts | 95,327,490 | 127,836,817 | 109,418,269 | 113,955,088 | 113,594,548 | |||||||||
Interest-bearing NOW | 22,378,016 | 19,405,621 | 19,161,806 | 21,532,867 | 22,518,830 | |||||||||
Core MMA & Savings | 88,468,843 | 87,007,973 | 93,142,481 | 102,969,388 | 85,891,021 | |||||||||
ICS Reciprocal - MMA | 65,089,274 | 49,159,929 | 32,959,556 | 42,157,824 | 76,963,368 | |||||||||
Total MMA & Savings | 153,558,117 | 136,167,902 | 126,102,037 | 145,127,212 | 162,854,389 | |||||||||
Core Time Deposits | 29,332,254 | 29,305,651 | 26,866,489 | 21,153,172 | 11,019,913 | |||||||||
CDARS - Reciprocal | 19,709,000 | 19,233,313 | 18,975,442 | 11,701,169 | 10,601,322 | |||||||||
Brokered CDs | 135,142,064 | 145,377,533 | 143,942,948 | 164,119,991 | 139,859,453 | |||||||||
Total Time Deposits | 184,183,318 | 193,916,497 | 189,784,879 | 196,974,332 | 161,480,688 | |||||||||
Total Deposits | 455,446,941 | 477,326,837 | 444,466,991 | 477,589,499 | 460,448,455 | |||||||||
Other Borrowings | 24,000,000 | 9,000,000 | 30,000,000 | 9,000,000 | 9,000,000 | |||||||||
Federal Funds Purchased | - | - | - | - | - | |||||||||
ACL on Unfunded Commitments | 458,381 | 498,632 | 366,167 | 392,328 | 678,444 | |||||||||
Other Liabilities | 3,031,561 | 3,336,685 | 3,174,047 | 3,205,767 | 3,422,078 | |||||||||
Total Liabilities | 482,936,883 | 490,162,154 | 478,007,205 | 490,187,594 | 473,548,977 | |||||||||
Shareholders' Equity | ||||||||||||||
Common Stock | 73,172,267 | 73,086,971 | 72,997,463 | 66,938,869 | 66,692,747 | |||||||||
Accumulated Deficit | (14,609,619) | (13,239,432) | (12,491,018) | (11,880,398) | (11,779,488) | |||||||||
Accumulated Other Comprehensive Loss | (16,338,854) | (14,832,875) | (17,092,818) | (18,095,820) | (17,310,555) | |||||||||
Total Shareholders' Equity | 42,223,794 | 45,014,664 | 43,413,627 | 36,962,651 | 37,602,704 | |||||||||
Total Liabilities & Shareholders' Equity | $ 525,160,677 | $ 535,176,818 | $ 521,420,832 | $ 527,150,245 | $ 511,151,681 | |||||||||
Shares Outstanding | 7,993,969 | 7,989,860 | 7,985,194 | 6,695,121 | 6,695,121 | |||||||||
Tangible Book Value per Share | $ 5.28 | $ 5.63 | $ 5.44 | $ 5.52 | $ 5.62 | |||||||||
Triad Business Bank | |||||||||||||||
Income Statement (Unaudited) | For Three Months Ended | For Three Months Ended | For Three Months Ended | For Three Months Ended | For Three Months Ended | ||||||||||
December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||
Interest Income | |||||||||||||||
Interest & Fees on Loans | $ 5,673,515 | $ 5,727,249 | $ 5,483,641 | $ 5,253,323 | $ 4,853,516 | ||||||||||
Interest & Dividend Income on Securities | 1,011,942 | 1,082,175 | 1,087,361 | 1,090,009 | 1,170,658 | ||||||||||
Interest Income on Balances Due from Banks | 222,737 | 300,897 | 369,258 | 283,289 | 322,412 | ||||||||||
Other Interest Income | 51,342 | 80,740 | 85,328 | 87,369 | 83,452 | ||||||||||
Total Interest Income | 6,959,536 | 7,191,061 | 7,025,588 | 6,713,990 | 6,430,038 | ||||||||||
Interest Expense | |||||||||||||||
Interest on Checking Deposits | 202,209 | 206,359 | 216,178 | 218,511 | 233,811 | ||||||||||
Interest on Savings & MMA Deposits | 1,222,203 | 1,317,088 | 1,427,510 | 1,430,372 | 1,484,151 | ||||||||||
Interest on Time Deposits | 2,379,797 | 2,356,834 | 2,501,019 | 2,161,020 | 1,829,874 | ||||||||||
Interest on Federal Funds Purchased | - | - | 155 | - | - | ||||||||||
Interest on Borrowings | 163,182 | 298,956 | 122,057 | 200,034 | 223,442 | ||||||||||
Other Interest Expense | 24,831 | 65,224 | 65,692 | 66,637 | 67,927 | ||||||||||
Total Interest Expense | 3,992,222 | 4,244,461 | 4,332,611 | 4,076,574 | 3,839,205 | ||||||||||
Net Interest Income | 2,967,314 | 2,946,600 | 2,692,977 | 2,637,416 | 2,590,833 | ||||||||||
Provision for (Reversal of) Credit Losses | 1,669,709 | 984,052 | 291 | (334,087) | 322,715 | ||||||||||
Net Interest Income After Provision for CL | 1,297,605 | 1,962,548 | 2,692,686 | 2,971,503 | 2,268,118 | ||||||||||
Total Noninterest Income | 333,915 | 325,482 | 103,409 | 304,219 | 300,928 | ||||||||||
Noninterest Expense | |||||||||||||||
Salaries & Benefits | 1,880,888 | 1,938,269 | 2,089,993 | 2,210,023 | 2,276,590 | ||||||||||
Severance - One-time Expense | - | - | 87,153 | - | - | ||||||||||
Premises & Equipment | 130,108 | 124,197 | 131,464 | 136,442 | 137,398 | ||||||||||
Total Other Noninterest Expense | 990,711 | 973,977 | 1,098,106 | 1,030,167 | 955,551 | ||||||||||
Total Noninterest Expense | 3,001,707 | 3,036,443 | 3,406,716 | 3,376,632 | 3,369,539 | ||||||||||
Loss Before Income Tax | (1,370,187) | (748,413) | (610,621) | (100,910) | (800,493) | ||||||||||
Income Tax | - | - | - | - | - | ||||||||||
Net Loss | $ (1,370,187) | $ (748,413) | $ (610,621) | $ (100,910) | $ (800,493) | ||||||||||
Net Loss per Share | |||||||||||||||
Basic | $ (0.17) | $ (0.09) | $ (0.09) | $ (0.02) | $ (0.12) | ||||||||||
Diluted | $ (0.17) | $ (0.09) | $ (0.09) | $ (0.02) | $ (0.12) | ||||||||||
Weighted Average Shares Outstanding | |||||||||||||||
Basic | 7,993,728 | 7,988,720 | 6,800,657 | 6,695,121 | 6,694,694 | ||||||||||
Diluted | 7,993,728 | 7,988,720 | 6,800,657 | 6,695,121 | 6,694,694 | ||||||||||
Pre-provision, Pre-tax Income (Loss) | $ 299,522 | $ 235,639 | $ (610,330) | $ (434,997) | $ (477,778) | ||||||||||
Triad Business Bank | |||||||||||||||||||||||
Capital and Capital Ratios (Unaudited) | |||||||||||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||||||
12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | |||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
Actual | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Total Capital (to risk-weighted assets) | $ 63,107 | 12.78 % | $ 64,907 | 13.05 % | $ 64,581 | 13.26 % | $ 59,133 | 12.22 % | $ 59,322 | 12.70 % | |||||||||||||
Tier 1 Capital (to risk-weighted assets) | $ 58,563 | 11.86 % | $ 59,848 | 12.03 % | $ 60,507 | 12.43 % | $ 55,059 | 11.38 % | $ 54,913 | 11.76 % | |||||||||||||
Tier 1 Capital (to average assets) | $ 58,563 | 10.79 % | $ 59,848 | 10.91 % | $ 60,507 | 11.05 % | $ 55,059 | 10.37 % | $ 54,913 | 10.52 % | |||||||||||||
Minimum To Be Well-Capitalized Under | |||||||||||||||||||||||
Prompt Corrective Action Provisions | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Total Capital (to risk-weighted assets) | $ 49,000 | 10.00 % | $ 50,000 | 10.00 % | $ 49,000 | 10.00 % | $ 48,000 | 10.00 % | $ 47,000 | 10.00 % | |||||||||||||
Tier 1 Capital (to risk-weighted assets) | $ 40,000 | 8.00 % | $ 40,000 | 8.00 % | $ 39,000 | 8.00 % | $ 39,000 | 8.00 % | $ 37,000 | 8.00 % | |||||||||||||
Tier 1 Capital (to average assets) | $ 27,000 | 5.00 % | $ 27,000 | 5.00 % | $ 27,000 | 5.00 % | $ 27,000 | 5.00 % | $ 26,000 | 5.00 % | |||||||||||||
Triad Business Bank | ||||||||||||
Non-GAAP Measures (Unaudited) | ||||||||||||
Tangible Book Value | ||||||||||||
Actual | Non-GAAP | |||||||||||
Total Shareholders' Equity | $ 42,223,794 | $ 42,223,794 | ||||||||||
Eliminate Deferred Tax Asset Valuation Allowance | - | 3,053,456 | ||||||||||
Eliminate Accumulated Other Comprehensive Loss | - | 16,338,854 | ||||||||||
Adjusted Shareholders' Equity | $ 42,223,794 | $ 61,616,104 | ||||||||||
Shares Outstanding | 7,993,969 | 7,993,969 | ||||||||||
Tangible Book Value per Share | $ 5.28 | $ 7.71 | ||||||||||
Effect of Non-GAAP Measures on Tangible Book Value | $ 2.43 | |||||||||||
During the start-up phase of the Bank, a valuation allowance was created which fully impairs the deferred tax asset. When sufficient, verifiable | ||||||||||||
evidence exists (generally, sustained profitability) demonstrating that the deferred tax asset will more likely than not be realized, the valuation | ||||||||||||
allowance will be eliminated. This Non-GAAP measure is shown to disclose the effect on tangible book value per share at December 31, 2024 had | ||||||||||||
there been no valuation allowance at that date. | ||||||||||||
Changes in the market value of available-for-sale securities are reflected in accumulated other comprehensive loss. Since the securities value | ||||||||||||
will return to face value at maturity, assuming the underlying securities are held to maturity and there is no credit loss, accumulated other | ||||||||||||
comprehensive loss has been eliminated in this Non-GAAP measure. | ||||||||||||
Pre-provision Income (Loss) | ||||||||||||
Year Ended | Year Ended | |||||||||||
Loss Before Income Tax | $ (2,830,131) | $ (4,319,840) | ||||||||||
Provision for Credit Losses | 2,319,964 | 2,915,181 | ||||||||||
Pre-provision Loss Before Income Tax (Non-GAAP) | $ (510,167) | $ (1,404,659) | ||||||||||
Qtr Ended | Qtr Ended | |||||||||||
Loss Before Income Tax | $ (1,370,187) | $ (800,493) | ||||||||||
Provision for Credit Losses | 1,669,709 | 322,715 | ||||||||||
Pre-provision Income (Loss) Before Income Tax (Non-GAAP) | $ 299,522 | $ (477,778) | ||||||||||
The pre-provision income (loss) is a measure of operating performance exclusive of potential losses from lending. | ||||||||||||
SOURCE Triad Business Bank
