May 2, 2024

Triad Business Bank (OTC Pink – “TBBC”), May 2, 2024, Announces Unaudited First Quarter 2024 Results

GREENSBORO, N.C., May 2, 2024 /PRNewswire/ —

Overview

Triad Business Bank (the “Bank”) was formed in 2020 to serve small and mid-size businesses in the Triad. Ramsey Hamadi, Chief Executive Officer, commented “In the first quarter of 2024, the Bank had a net loss of $101,000, which was a $700,000 improvement over the previous quarter.  The Bank had several continuing positive trends as capital levels remained strong and loan balances increased $25 million, or 7%, and loan yields increased 28 basis points during the quarter to 6.06%.  The broadening of deposit relationships continued as the number of operating accounts increased by 7% with 49 new business operating accounts.  On March 31, 2024, the Bank had no reportable past due loans and no nonperforming assets.  For the quarter, the Bank processed $1.4 billion of transactions and total capital levels remained strong at $59 million, or 12.2% of total risk weighted assets.  The core operating results, a non-GAAP measurement which excludes the provision for credit losses and taxes, improved marginally to a loss of $435,000 from a loss of $478,000 in the quarter ended December 31, 2023. 

The events of 2023 were difficult for the banking industry and especially so for our rapidly growing young bank.  The rapid rise of interest rates leading into 2023 resulted in opportunities for some Bank customers to invest money in non-financial institution instruments, such as US Treasury and municipal securities.  The Bank’s loan growth outpaced the core customer deposit growth, and as a result, the Bank supported loan growth last year with wholesale funding.  The higher costs of these funding sources had a dramatic negative impact on the Bank’s net interest income and profitability.

In April 2024, the Bank’s management and the Board together established a plan to accelerate the Bank’s path to profitability, while preserving the Bank’s commitment to its vision and mission to provide superior customer service to commercial and industrial customers throughout the Triad.  As part of this plan, we will heighten our focus upon generating core deposits and on making the types of loans that offer significant core deposit relationships, right sizing our structure, and decreasing our operating expenses.  We are eliminating several personnel positions and reducing administrative expenses.  We anticipate that our focus on reducing operating expenses will have the combined effect of eliminating $2.0 million of annualized operating expense, which will in the long-term lead to a stronger bank, better placed to meet the needs of its communities.  The expense reduction initiative will be fully implemented during the second quarter and will result in one-time expense of approximately $100,000.”

Income Statement Comparison 

The Bank’s net loss totaled $101,000 for the quarter ended March 31, 2024 compared to a net loss of $800,000 for the quarter ended December 31, 2023.  Core operating results, a non-GAAP measurement which excludes the provision for credit losses and taxes, were a loss of $435,000 for the first quarter compared to a loss of $478,000 for the linked quarter ended December 31, 2023.  During the first quarter of 2024, some real estate construction loans, which carry a higher loss reserve rate, were completed and moved to permanent loans.  As a result, the Bank recorded a reduction in the allowance for credit losses by a credit to the provision for credit losses of $334,000.

The Bank’s primary source of income is the spread between the interest it earns on loans and investments and the interest it pays on deposits and other sources of funding.  Net interest income increased $47,000 to $2.64 million for the first quarter of 2024 from $2.59 million for the prior quarter.  The Bank’s net interest margin for the first quarter of 2024 increased one basis point to 2.10% compared to the previous quarter.  While the yield on earning assets increased in the first quarter of 2024 over the fourth quarter of 2023, the decline in core deposits and the increase in higher cost wholesale funding resulted in the net interest margin remaining fairly stable.

Interest income increased $284,000, or 4%, to $6.71 million in the first quarter of 2024 compared to $6.43 million in the linked quarter.  The growth in interest income was due primarily to the growth in loans, which increased $25.1 million during the quarter to $359.2 million, and an increase in the weighted average yield on average loans to 6.06% in the first quarter of 2024 compared to 5.78% in the fourth quarter of 2023.  However, the weighted average rate on interest-bearing liabilities increased to 4.34% in the first quarter of 2024 compared to 4.19% in the fourth quarter of 2023 due primarily to the increase of wholesale funding.  

Noninterest expense was virtually unchanged at $3.38 million for the first quarter of 2024 compared to $3.37 million in the fourth quarter of 2023.  Salaries and benefits expense totaled $2.21 million for the first quarter of 2024, which was a decrease of $67,000, or 3%, over the fourth quarter of 2023 and was primarily due to reductions in accruals.  The Bank had 61 employees at the end of March 2024 compared to 62 at the end of 2023.  Other operating expenses increased $74,000 for the first quarter of 2024 over the previous quarter due principally to an increase in regulatory assessments.

Balance Sheet Comparison 

Total assets increased $16.0 million to $527.2 million at March 31, 2024 from $511.2 million at December 31, 2023.  During the first quarter of 2024, loans increased $25.1 million and deposits increased $17.1 million.  Total core customer deposits decreased $7.1 million during the first quarter of 2024 while there was an increase of $24.2 million in wholesale funding (brokered deposits).

Shareholders’ equity declined $640,000 during the first quarter of 2024 to $37.0 million primarily due to the $785,000 increase in the accumulated other comprehensive income (“AOCI”) loss to $18.1 million.  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 funded and unfunded credit losses.  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 March 31, 2024:

Capital and Capital Ratios

Quarter Ended

3/31/2024

Amount

Ratio

Actual

(dollars in thousands)

Total Capital (to risk-weighted assets)

$  59,133

12.22 %

Tier 1 Capital (to risk-weighted assets)

$  55,059

11.38 %

Tier 1 Capital (to average assets)

$  55,059

10.37 %

Minimum To Be Well-Capitalized Under

   Prompt Corrective Action Provisions

(dollars in thousands)

Total Capital (to risk-weighted assets)

$  48,000

10.00 %

Tier 1 Capital (to risk-weighted assets)

$  39,000

8.00 %

Tier 1 Capital (to average assets)

$  27,000

5.00 %

Loans

The Bank’s loans increased $25.1 million, or 7%, to $359.2 million at March 31, 2024 compared to $334.1 million at December 31, 2023 and increased $58.2 million, or 19%, from $301.0 million at March 31, 2023.  While not included in loans outstanding, the Bank also had unfunded loan commitments of $128.1 million, bringing total loans outstanding and unfunded commitments to $487.3 million at March 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 March 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

3/31/2024

Loan Portfolio

Other Construction & Land Development

$        48,228,671

Nonowner-occupied Commercial Real Estate

126,596,765

   Total Commercial Real Estate

174,825,436

48 %

Owner-occupied Real Estate

91,842,898

C&I

90,293,646

   Total C&I

182,136,544

51 %

Other Revolving Loans

2,237,514

1 %

Total

$      359,199,494

Credit Risk and Allowance for Credit Losses

The Bank had no reportable past due loans or nonperforming assets at March 31, 2024.  The Bank’s loan portfolio has been underwritten conservatively with a focus on cash flows of prospective borrowers.  

The allowance for credit losses on loans at March 31, 2024 was $3.7 million, or 1.03% of outstanding loans.  The allowance for credit losses on unfunded loan commitments, recorded as a liability on the balance sheet, was $392,000, or 0.31% of the unfunded commitments at March 31, 2024. 

Deferred Tax Asset and AOCI (Non-GAAP Measures)

The Bank’s GAAP tangible book value per share was $5.52 at March 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 $8.61 at March 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 $2.6 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 March 31, 2024, the Bank had an aggregate AOCI loss of $18.1 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 fixed versus floating rate mix of the Bank’s assets and liabilities has resulted in a substantial portion of the liabilities reflecting increases in market rates whereas its loans are repricing more slowly.  If current deposit and market rates remain stable, we expect the repricing of our loan portfolio over the next several quarters will gradually improve the Bank’s net interest margin.

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)

March 31, 2024

December 31, 2023

$ Change

% Change

Assets

Cash & Due from Banks

$              30,489,026

$              33,610,971

$              (3,121,945)

-9 %

Securities

131,199,978

137,537,443

(6,337,465)

-5 %

Federal Funds Sold

–

–

–

0 %

Loans

359,199,494

334,142,073

25,057,421

7 %

Allowance for Credit Losses (“ACL”)

(3,681,954)

(3,729,925)

47,971

1 %

Loans, Net

355,517,540

330,412,148

25,105,392

8 %

Other Assets

9,943,701

9,591,119

352,582

4 %

Total Assets

$            527,150,245

$            511,151,681

$              15,998,564

3 %

Liabilities

Demand Deposits

$            102,564,892

$              99,389,815

$               3,175,077

3 %

ICS Reciprocal – Checking

11,390,196

14,204,733

(2,814,537)

-20 %

  Commercial Operating Accounts

113,955,088

113,594,548

360,540

0 %

Interest-bearing NOW

21,532,867

22,518,830

(985,963)

-4 %

Core MMA & Savings

102,969,388

85,891,021

17,078,367

20 %

ICS Reciprocal – MMA

42,157,824

76,963,368

(34,805,544)

-45 %

  Total MMA & Savings

145,127,212

162,854,389

(17,727,177)

-11 %

Core Time Deposits

21,153,172

11,019,913

10,133,259

92 %

CDARS – Reciprocal

11,701,169

10,601,322

1,099,847

10 %

Brokered CDs

164,119,991

139,859,453

24,260,538

17 %

  Total Time Deposits

196,974,332

161,480,688

35,493,644

22 %

Total Deposits

477,589,499

460,448,455

17,141,044

4 %

Other Borrowings

9,000,000

9,000,000

–

0 %

Federal Funds Purchased

–

–

–

0 %

ACL on Unfunded Commitments

392,328

678,444

(286,116)

-42 %

Other Liabilities

3,205,767

3,422,078

(216,311)

-6 %

Total Liabilities

490,187,594

473,548,977

16,638,617

4 %

Shareholders’ Equity

Common Stock

66,938,869

66,692,747

246,122

0 %

Accumulated Deficit

(11,880,398)

(11,779,488)

(100,910)

-1 %

Accumulated Other Comprehensive Loss

(18,095,820)

(17,310,555)

(785,265)

-5 %

Total Shareholders’ Equity

36,962,651

37,602,704

(640,053)

-2 %

Total Liabilities & Shareholders’ Equity

$            527,150,245

$            511,151,681

$              15,998,564

3 %

Shares Outstanding

6,695,121

6,695,121

0

0 %

Tangible Book Value per Share

$                       5.52

$                       5.62

$                      (0.09)

-2 %

 

Triad Business Bank

Income Statement (Unaudited)

For Three Months Ended

For Three Months Ended

March 31, 2024

December 31, 2023

$ Change

% Change

Interest Income

Interest & Fees on Loans

$                            5,253,323

$                            4,853,516

$                               399,807

8 %

Interest & Dividend Income on Securities

1,090,009

1,170,658

(80,649)

-7 %

Interest Income on Balances Due from Banks

283,289

322,412

(39,123)

-12 %

Other Interest Income

87,369

83,452

3,917

5 %

Total Interest Income

6,713,990

6,430,038

283,952

4 %

Interest Expense

Interest on Checking Deposits

218,511

233,811

(15,300)

-7 %

Interest on Savings & MMA Deposits 

1,430,372

1,484,151

(53,779)

-4 %

Interest on Time Deposits

2,161,020

1,829,874

331,146

18 %

Interest on Federal Funds Purchased

–

–

–

0 %

Interest on Borrowings

200,034

223,442

(23,408)

-10 %

Other Interest Expense

66,637

67,927

(1,290)

-2 %

Total Interest Expense

4,076,574

3,839,205

237,369

6 %

Net Interest Income

2,637,416

2,590,833

46,583

2 %

Provision for Credit Losses

(334,087)

322,715

(656,802)

-204 %

Net Interest Income After Provision for CL

2,971,503

2,268,118

703,385

31 %

Total Noninterest Income

283,910

294,628

(10,718)

-4 %

Total Gain (Loss) on Securities

20,309

6,300

14,009

222 %

Noninterest Expense

Salaries & Benefits

2,210,023

2,276,590

(66,567)

-3 %

Premises & Equipment

136,442

137,398

(956)

-1 %

Total Other Noninterest Expense

1,030,167

955,551

74,616

8 %

Total Noninterest Expense

3,376,632

3,369,539

7,093

0 %

Income (Loss) Before Income Tax

(100,910)

(800,493)

699,583

87 %

Income Tax

–

–

–

0 %

 Net Income (Loss) 

$                      (100,910)

$                      (800,493)

$                       699,583

87 %

Net Income (Loss) per Share

Basic

$                           (0.02)

$                           (0.12)

$                            0.10

87 %

Diluted

$                           (0.02)

$                           (0.12)

$                            0.10

87 %

Weighted Average Shares Outstanding

Basic

6,695,121

6,694,694

427

0 %

Diluted

6,695,121

6,694,694

427

0 %

Pre-provision, Pre-tax Loss

$                      (434,997)

$                      (477,778)

$                         42,781

9 %

 

Triad Business Bank

Key Ratios & Other Information (Unaudited)

Quarter Ended

Quarter Ended

3/31/2024

12/31/2023

Interest

Interest

Income/

Yield/

Income/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

Yield on Average Loans 

$   348,932,123

$        5,253,323

6.055 %

333,128,084

4,853,516

5.780 %

Yield on Average Investment Securities

$   133,568,374

$        1,090,009

3.282 %

$      134,652,018

$          1,170,658

3.449 %

Yield on Average Interest-earning Assets

$   504,440,542

$        6,713,990

5.353 %

$      492,038,846

$          6,430,038

5.185 %

Cost of Average Interest-bearing Liabilities

$   377,862,470

$        4,076,574

4.339 %

$      363,885,127

$          3,839,205

4.186 %

Net Interest Margin

Interest Income 

$        6,713,990

$          6,430,038

Interest Expense

4,076,574

3,839,205

Average Earnings Assets

$   504,440,542

$      492,038,846

Net Interest Income & Net Interest Margin

$        2,637,416

2.103 %

$          2,590,833

2.089 %

Loan to Asset Ratio

Loan Balance

$   359,199,494

$      334,142,073

Total Assets

527,150,245

68.140 %

511,151,681

65.370 %

Leverage Ratio

Tier 1 Capital

$     55,058,471

$         54,913,259

Average Total Assets

530,957,281

10.370 %

521,794,894

10.524 %

Unfunded Commitments to Extend Credit

$   128,089,831

$      135,959,421

Standby Letters of Credit

186,252

186,252

 

Triad Business Bank

Balance Sheet (Unaudited)

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

March 31, 2023

Assets

Cash & Due from Banks

$              30,489,026

$              33,610,971

$              28,774,582

$              52,211,693

$              41,939,297

Securities

131,199,978

137,537,443

135,448,032

139,889,880

136,775,960

Federal Funds Sold

–

–

–

–

–

Loans

359,199,494

334,142,073

328,954,619

316,210,980

300,970,336

Allowance for Credit Losses (“ACL”)

(3,681,954)

(3,729,925)

(3,738,836)

(3,509,593)

(3,354,606)

Loans, Net

355,517,540

330,412,148

325,215,783

312,701,387

297,615,730

Other Assets

9,943,701

9,591,119

8,845,602

8,296,216

8,598,657

Total Assets

$            527,150,245

$            511,151,681

$            498,283,999

$            513,099,176

$            484,929,644

Liabilities

Demand Deposits

$            102,564,892

$              99,389,815

$            101,103,791

$            104,796,822

$            106,109,354

ICS Reciprocal – Checking

11,390,196

14,204,733

11,241,300

29,689,563

26,977,867

  Commercial Operating Accounts

113,955,088

113,594,548

112,345,091

134,486,385

133,087,221

Interest-bearing NOW

21,532,867

22,518,830

20,914,221

19,885,942

5,468,207

Core MMA & Savings

102,969,388

85,891,021

95,161,537

95,250,866

169,575,165

ICS Reciprocal – MMA

42,157,824

76,963,368

73,887,703

78,325,692

20,430,098

  Total MMA & Savings

145,127,212

162,854,389

169,049,240

173,576,558

190,005,263

Core Time Deposits

21,153,172

11,019,913

10,598,293

9,541,015

7,421,530

CDARS – Reciprocal

11,701,169

10,601,322

9,555,900

10,343,801

5,746,927

Brokered CDs

164,119,991

139,859,453

129,584,145

120,201,839

87,165,000

  Total Time Deposits

196,974,332

161,480,688

149,738,338

140,086,655

100,333,457

Total Deposits

477,589,499

460,448,455

452,046,890

468,035,540

428,894,148

Other Borrowings

9,000,000

9,000,000

9,000,000

5,000,000

15,000,000

Federal Funds Purchased

–

–

–

–

–

ACL on Unfunded Commitments

392,328

678,444

647,068

620,519

700,980

Other Liabilities

3,205,767

3,422,078

2,750,602

2,803,124

2,435,003

Total Liabilities

490,187,594

473,548,977

464,444,560

476,459,183

447,030,131

Shareholders’ Equity

Common Stock

66,938,869

66,692,747

66,448,450

66,206,484

66,037,467

Accumulated Deficit

(11,880,398)

(11,779,488)

(10,978,995)

(10,320,428)

(9,884,175)

Accumulated Other Comprehensive Loss

(18,095,820)

(17,310,555)

(21,630,016)

(19,246,063)

(18,253,779)

Total Shareholders’ Equity

36,962,651

37,602,704

33,839,439

36,639,993

37,899,513

Total Liabilities & Shareholders’ Equity

$            527,150,245

$            511,151,681

$            498,283,999

$            513,099,176

$            484,929,644

Shares Outstanding

6,695,121

6,695,121

6,693,965

6,693,965

6,602,984

Tangible Book Value per Share

$                       5.52

$                       5.62

$                       5.06

$                       5.47

$                       5.74

 

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

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

March 31, 2023

Interest Income

Interest & Fees on Loans

$                            5,253,323

$                            4,853,516

$                            4,547,570

$                            4,156,500

$                                3,535,845

Interest & Dividend Income on Securities

1,090,009

1,170,658

1,171,364

1,090,464

1,011,613

Interest Income on Balances Due from Banks

283,289

322,412

405,520

391,371

308,571

Other Interest Income

87,369

83,452

82,167

76,387

60,029

Total Interest Income

6,713,990

6,430,038

6,206,621

5,714,722

4,916,058

Interest Expense

Interest on Checking Deposits

218,511

233,811

217,879

184,372

93,294

Interest on Savings & MMA Deposits 

1,430,372

1,484,151

1,508,522

1,329,486

1,342,045

Interest on Time Deposits

2,161,020

1,829,874

1,608,518

1,228,575

591,865

Interest on Federal Funds Purchased

–

–

–

170

–

Interest on Borrowings

200,034

223,442

161,457

187,215

180,360

Other Interest Expense

66,637

67,927

67,359

62,970

54,519

Total Interest Expense

4,076,574

3,839,205

3,563,735

2,992,788

2,262,083

Net Interest Income

2,637,416

2,590,833

2,642,886

2,721,934

2,653,975

Provision for Credit Losses

(334,087)

322,715

255,792

74,526

2,262,148

Net Interest Income After Provision for CL

2,971,503

2,268,118

2,387,094

2,647,408

391,827

Total Noninterest Income

283,910

294,628

185,914

163,673

193,706

Total Gain (Loss) on Securities

20,309

6,300

(2,800)

4,200

27,300

Noninterest Expense

Salaries & Benefits

2,210,023

2,276,590

2,155,982

2,110,577

2,061,734

Premises & Equipment

136,442

137,398

125,426

135,379

135,654

Total Other Noninterest Expense

1,030,167

955,551

947,367

1,005,578

839,972

Total Noninterest Expense

3,376,632

3,369,539

3,228,775

3,251,534

3,037,360

Loss Before Income Tax

(100,910)

(800,493)

(658,567)

(436,253)

(2,424,527)

Income Tax

–

–

–

–

–

 Net Loss 

$                      (100,910)

$                      (800,493)

$                      (658,567)

$                      (436,253)

$                      (2,424,527)

Net Loss per Share

Basic

$                           (0.02)

$                           (0.12)

$                           (0.10)

$                           (0.07)

$                              (0.37)

Diluted

$                           (0.02)

$                           (0.12)

$                           (0.10)

$                           (0.07)

$                              (0.37)

Weighted Average Shares Outstanding

Basic

6,695,121

6,694,694

6,693,965

6,622,596

6,602,984

Diluted

6,695,121

6,694,694

6,693,965

6,622,596

6,602,984

Pre-provision, Pre-tax Loss

$                      (434,997)

$                      (477,778)

$                      (402,775)

$                      (361,727)

$                         (162,379)

 

Triad Business Bank

Capital and Capital Ratios (Unaudited)

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

3/31/2024

12/31/2023

9/30/2023

6/30/2023

3/31/2023

Amount

Ratio

Amount

Ratio

Amount

Ratio

Amount

Ratio

Amount

Ratio

Actual

(dollars in thousands)

Total Capital (to risk-weighted assets)

$ 59,133

12.22 %

$ 59,322

12.70 %

$ 59,855

12.89 %

$ 60,017

13.41 %

$ 60,210

14.03 %

Tier 1 Capital (to risk-weighted assets)

$ 55,059

11.38 %

$ 54,913

11.76 %

$ 55,469

11.94 %

$ 55,886

12.48 %

$ 56,154

13.09 %

Tier 1 Capital (to average assets)

$ 55,059

10.37 %

$ 54,913

10.52 %

$ 55,469

10.76 %

$ 55,886

11.11 %

$ 56,154

11.73 %

Minimum To Be Well-Capitalized Under

   Prompt Corrective Action Provisions

(dollars in thousands)

Total Capital (to risk-weighted assets)

$ 48,000

10.00 %

$ 47,000

10.00 %

$ 46,000

10.00 %

$ 45,000

10.00 %

$ 43,000

10.00 %

Tier 1 Capital (to risk-weighted assets)

$ 39,000

8.00 %

$ 37,000

8.00 %

$ 37,000

8.00 %

$ 36,000

8.00 %

$ 34,000

8.00 %

Tier 1 Capital (to average assets)

$ 27,000

5.00 %

$ 26,000

5.00 %

$ 26,000

5.00 %

$ 25,000

5.00 %

$ 24,000

5.00 %

 

Triad Business Bank

Non-GAAP Measures (Unaudited)

Tangible Book Value

Actual
3/31/2024

Non-GAAP
3/31/2024

Total Shareholders’ Equity

$       36,962,651

$       36,962,651

Eliminate Deferred Tax Asset Valuation Allowance

–

2,560,959

Eliminate Accumulated Other Comprehensive Loss

–

18,095,820

Adjusted Shareholders’ Equity

$       36,962,651

$       57,619,430

Shares Outstanding

6,695,121

6,695,121

Tangible Book Value per Share

$                  5.52

$                  8.61

Effect of Non-GAAP Measures on Tangible Book Value

$                  3.09

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 March 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 Loss

Qtr Ended
3/31/2024

Qtr Ended
12/31/2023

Loss Before Income Tax

$           (100,910)

$           (800,493)

Provision for Credit Losses

(334,087)

322,715

Pre-provision Loss Before Income Tax (Non-GAAP)

$           (434,997)

$           (477,778)

The pre-provision loss is a measure of operating performance exclusive of potential losses from lending.

 

View original content:https://www.prnewswire.com/news-releases/triad-business-bank-otc-pink–tbbc-may-2-2024-announces-unaudited-first-quarter-2024-results-302134243.html

SOURCE Triad Business Bank

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