Triad Business Bank (OTC Pink - "TBBC") Announces Unaudited Results for 2022, Including Fourth Quarter Results

Rhea-AI Summary

Triad Business Bank completed its second full year of operations by achieving profitability in two quarters of 2022. The Bank reported net revenue of $12.1 million and core operating earnings of $1.0 million. The fourth quarter of 2022 showed a net income of $79,000, contrasting with a net loss of $537,000 in Q4 2021. Core loans surged 62% to $272.2 million, while total assets rose 19% to $445.1 million. AOCI showed a loss of $20.1 million. Management expects continued growth in loans and deposits and increased profitability in 2023.

Positive

• Net revenue increased to $12.1 million in 2022.
• Core operating earnings improved to $1 million, a $4.1 million increase from the previous year.
• Net interest income expanded to $11.5 million, a 65% increase from 2021.
• Core loans grew by 62% to $272.2 million.

Negative

• Net loss of $364,000 for the year, although improved from a loss of $1.6 million in 2021.
• AOCI loss of $20.1 million impacting book value per share.

GREENSBORO, N.C., Feb. 9, 2023 /PRNewswire/ --

Overview

CEO Ramsey K. Hamadi commented, "On December 31, 2022, Triad Business Bank (the "Bank") completed its second full year of operations, and we are proud to report the Bank had two profitable quarters in 2022.  We are also proud that our Bank has achieved widespread support in the markets we serve.  The Bank had established more than 400 business operating deposit account relationships, principally in the Triad.  These businesses transacted more than $5 billion of activity through the Bank during 2022.  Continued loan and deposit growth drove our net revenue to $12.1 million for the year and yielded core operating earnings, a non-GAAP measurement which excludes the provision for loan losses and taxes, of $1.0 million.  In addition, excluding the benefit from loans made under the Paycheck Protection Program ("PPP") and gain or loss on securities, core operating earnings improved $4.1 million over the prior year."

Fourth Quarter Income Statement Highlights Comparing the Quarters Ended December 31, 2022, and 2021:

• Net income grew $616,000 from the prior year to $79,000
• Core operating earnings rose $452,000 to $365,000 (non-GAAP measurement)
• Excluding benefits from PPP loans and gain or loss on securities, core operating earnings rose $932,000 (non-GAAP measurement)
• Net interest income expanded $1.1 million to $3.3 million
• Interest income on core loans rose $1.9 million, or 136%, to $3.2 million
• Net interest margin increased 0.56% to 2.92%

Full Year 2022 Income Statement Highlights Compared to Full Year 2021

• Earnings improved $1.2 million to a loss of $364,000
• Core operating earnings improved $1.4 million to $1.0 million (non-GAAP measurement)
• Excluding benefits from PPP loans and gain or loss on securities, core operating earnings improved $4.1 million (non-GAAP measurement)
• Net interest income expanded $4.1 million to $11.5 million
• Interest income on core loans rose $5.4 million, or 127%, to $9.7 million
• Net interest margin increased 0.24% to 2.78%

Balance Sheet Highlights Comparing December 31, 2022, and 2021:

• Core loans increased $104.5 million to $272.2 million, or 62%
• Total assets increased $72.1 million to $445.1 million, or 19%
• Noninterest-bearing deposits increased $75.9 million to $176.8 million, or 75%
• Allowance for loan losses increased $1.3 million to $3.4 million, or 1.25% of core loans
• No non-performing or past due assets reported
• Regulatory total risk-based capital increased $1.7 million to $61.9 million

Fourth Quarter Income Statement Comparison 

The Bank reported net income of $79,000, or $0.01 per diluted share, for the three months ended December 31, 2022, compared to a loss of $537,000, or $(0.08) per diluted share, for the same period a year ago.  Core operating earnings, a non-GAAP measurement which excludes the provision for loan losses and taxes, were $365,000 for the fourth quarter of 2022 compared to a loss of $88,000 for the fourth quarter of 2021.

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.  Total interest income increased $2.1 million, or 83%, to $4.6 million in the fourth quarter of 2022 compared to $2.5 million in the fourth quarter of 2021.  The growth in interest income was due primarily to growth in income on core loans which increased 136% to $3.2 million.  The weighted average yield on average core loans increased to 4.79% in the fourth quarter of 2022 from 3.55% in the fourth quarter of 2021.  Income on investment securities totaled $966,000 for the fourth quarter of 2022 compared to $751,000 for the fourth quarter of 2021.  Interest expense increased $973,000 in the fourth quarter of 2022 to $1.3 million from $368,000 in the fourth quarter of 2021 primarily as a result of Federal Reserve rate hikes.  The weighted average rate on interest-bearing liabilities increased to 2.05% in the fourth quarter of 2022 from 0.67% in the fourth quarter of 2021 due to higher deposit rates offered by the Bank resulting from the increase in market interest rates.  The Bank's net interest margin increased to 2.92% in the fourth quarter of 2022 from 2.36% in the fourth quarter of 2021 due to the repricing of variable rate loans in a higher interest rate environment as well as growth of higher yielding core loans.

Noninterest expense increased $586,000, or 25%, in the fourth quarter of 2022 to $3.0 million from $2.4 million in the fourth quarter of 2021.  Salaries and benefits expense totaled $2.1 million for the fourth quarter of 2022, which was an increase of $513,000, or 33%, over the fourth quarter of 2021.  Most of this increase was due to growth in compensation expense resulting from staff additions.  The Bank had 56 employees at the end of 2022 compared to 47 at the end of 2021 and 33 at the end of 2020.

Annual Income Statement Comparison 

The Bank reported a net loss of $364,000, or $(0.06) per diluted share, for the year ended December 31, 2022, compared to a net loss of $1.6 million, or $(0.27) per diluted share, for 2021.  However, core operating earnings, a non-GAAP measurement which excludes the provision for loan losses and taxes, were $1.0 million for the twelve-month period ended December 31, 2022 compared to a loss of $375,000 for the twelve-month period ended December 31, 2021.  

Total interest income increased $5.6 million, or 65%, to $14.2 million for 2022 compared to $8.6 million for 2021.  The increase in interest income was due primarily to growth in income on core loans which grew 127% to $9.7 million.  The weighted average yield on average core loans increased to 4.11% for 2022 from 3.76% for 2021.  Income on investment securities totaled $3.6 million for 2022 compared to $2.0 million for 2021.  Interest expense increased $1.5 million in 2022 to $2.7 million from $1.2 million in 2021.  The weighted average rate on interest-bearing liabilities increased to 1.10% for 2022 from 0.69% for 2021.  The Bank's net interest margin increased to 2.78% for 2022 from 2.54% for 2021.

Annual Balance Sheet Comparison 

Total assets increased $72.1 million during the year from $373.0 million at December 31, 2021 to $445.1 million at December 31, 2022.  During the year, core loans increased $104.5 million and were funded primarily through growth in noninterest-bearing demand deposits which increased $75.9 million. 

Deposit balances increased $87.5 million during the year to $392.9 million at December 31, 2022.  Growth in deposits stemmed primarily from the growth in noninterest-bearing demand deposits which totaled $176.8 million, or 45% of total deposits, at December 31, 2022.  Interest-bearing time and money market balances increased $41.3 million, but the growth in these balances was partially offset by a $29.6 million decline in interest-bearing checking account balances.  As retail interest-bearing accounts proved more volatile in the rising rate environment, the Bank refocused its efforts on acquiring business operating accounts which are less sensitive to changes in interest rates.  Time deposits, which consist primarily of brokered deposits, increased $37.2 million during the year to $43.0 million at December 31, 2022. 

Shareholders' equity declined $18.5 million during the year to $38.4 million.  This decline was primarily driven by changes in the market value of the Bank's investment portfolio which resulted in an $18.9 million change in accumulated other comprehensive income/loss ("AOCI").  The AOCI loss at December 31, 2022 was $20.1 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

The Bank's regulatory capital, which is the primary factor that allows for growth, increased during the year by $1.7 million to $61.9 million at December 31, 2022.  Total risk-based capital increased through operating earnings and growth in the allowance for loan loss.  Total risk-based capital consists of tier 1 capital and tier 2 capital.  The Bank's tier 1 capital is largely a measure of the Bank's shareholder equity as calculated under GAAP but eliminates certain volatile elements such as AOCI loss.  The Bank's tier 1 capital increased from results of operations by $348,000 to $58.5 million at December 31, 2022.  The Bank's tier 2 capital increased by $1.3 million.  Tier 1 and tier 2 capital ratios are measured against total assets and risk-weighted assets.  For the Bank to be able to continue to grow, it must maintain capital ratios that meet "well-capitalized" standards under regulatory guidelines. 

The Bank is increasing the leverage of its "well-capitalized" position as it grows.  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, 2022:

Capital and Capital Ratios

					Quarter Ended
					12/31/2022
					Amount		Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)					$  61,909		15.45 %
Tier 1 Capital (to risk-weighted assets)					$  58,490		14.60 %
Tier 1 Capital (to average assets)					$  58,490		12.44 %
Minimum To Be Well-Capitalized Under
Prompt Corrective Action Provisions
(dollars in thousands)
Total Capital (to risk-weighted assets)					$  40,000		10.00 %
Tier 1 Capital (to risk-weighted assets)					$  32,000		8.00 %
Tier 1 Capital (to average assets)					$  24,000		5.00 %

Loans

The Bank's core loans increased $104.5 million, or 62%, during 2022 to $272.2 million.  While not included in loans outstanding, the Bank also had unfunded loan commitments of $102.6 million, bringing total core loans outstanding and unfunded commitments to $374.8 million at year end.  For internal monitoring purposes, the Bank considers owner occupied real estate loans to be part of commercial and industrial ("C&I") loans.  At December 31, 2022, approximately 51% of the Bank's outstanding core loan portfolio was composed of C&I loans:

Loan Diversification

				Percentage of
		Year Ended		Core Loan
Loan Category		12/31/2022		Portfolio
Other Construction & Land Development		$    48,101,041
Non-owner Occupied Commercial Real Estate		85,763,295
Total Commercial Real Estate		133,864,336		49 %
Owner Occupied Real Estate		55,457,749
C&I		82,545,620
Total C&I		138,003,369		51 %
Other Revolving Loans		333,012		0 %
Total		$  272,200,717

Credit Risk

The Bank had no past due loans or nonperforming assets at December 31, 2022.  The Bank's loan portfolio has been underwritten conservatively with a focus on cash flows of prospective borrowers.   

Deferred Tax Asset and AOCI (Non-GAAP Measures)

The Bank's GAAP tangible book value per share declined from $8.63 at December 31, 2021 to $5.82 at December 31, 2022 primarily as a result of the Bank's AOCI loss.  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 $9.09 at December 31, 2022 compared to $9.07 at December 31, 2021.

The organization and startup costs incurred during the Bank's organizational period and net operating losses the first eleven quarters of operations created a deferred tax asset of $1.5 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 quarter end the Bank had an AOCI loss of $20.1 million.  Assuming the underlying investment securities are held to maturity and there are no credit losses, the value of the securities will return to the face value at maturity.  Therefore, as a non-GAAP measure, the Bank eliminates its current AOCI loss to reflect an adjusted tangible book value.  

Outlook

Management expects the Bank to continue its trends of strong loan and deposit growth during 2023.  Moreover, we anticipate the Bank will achieve further profitability in 2023.

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 loan 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, 2022		December 31, 2021
	Assets
	Cash & Due from Banks					$             30,177,676		$             38,743,278
	Securities					137,158,352		149,560,211
	Federal Funds Sold					-		-
	PPP Loans					848,172		11,605,363
	Core Loans					272,200,717		167,657,470
	Allowance for Loan Loss					(3,418,841)		(2,101,115)
	Loans, Net					269,630,048		177,161,718
	Other Assets					8,142,741		7,516,522
	Total Assets					$           445,108,817		$           372,981,729
	Liabilities
	Demand Deposits					$           176,820,321		$           100,963,064
	Interest-bearing NOW					13,209,174		42,820,018
	Interest-bearing Savings & MMA					159,857,410		155,805,422
	Time Deposits					42,975,369		5,731,398
	Total Deposits					392,862,274		305,319,902
	Other Borrowings					10,000,000		8,033,689
	Federal Funds Purchased					-		-
	Other Liabilities					3,807,240		2,651,588
	Total Liabilities					406,669,514		316,005,179
	Shareholders' Equity
	Common Stock					65,824,785		65,112,537
	Accumulated Deficit					(7,334,490)		(6,970,816)
	Accumulated Other Comprehensive Loss					(20,050,992)		(1,165,171)
	Total Shareholders' Equity					38,439,303		56,976,550
	Total Liabilities & Shareholders' Equity					$           445,108,817		$           372,981,729
	Shares Outstanding					6,602,984		6,602,984
	Tangible Book Value per Share					$                       5.82		$                       8.63

 

Triad Business Bank
Income Statement (Unaudited)							For the year ended		For the year ended
							December 31, 2022		December 31, 2021
	Interest Income
	Interest & Fees on PPP Loans						$                         289,109		$                     2,281,282
	Interest & Fees on Core Loans						9,651,275		4,260,401
	Interest & Dividend Income on Securities						3,570,880		1,973,655
	Interest Income on Balances Due from Banks						584,639		54,018
	Other Interest Income						84,859		37,114
	Total Interest Income						14,180,762		8,606,470
	Interest Expense
	Interest on NOW Deposits						250,955		187,939
	Interest on Savings & MMA Deposits						1,798,129		888,741
	Interest on Time Deposits						495,824		50,683
	Interest on Federal Funds Purchased						2,104		422
	Interest on Borrowings						99,704		71,844
	Other Interest Expense						70,657		34,174
	Total Interest Expense						2,717,373		1,233,803
	Net Interest Income						11,463,389		7,372,667
		Provision for Loan Losses					1,317,726		1,191,036
	Net Interest Income After Provision for LL						10,145,663		6,181,631
	Total Noninterest Income						743,381		270,773
	Total Gain (Loss) on Securities						(156,156)		570,446
	Noninterest Expense
	Salaries & Benefits						7,699,839		5,719,657
	Premises & Equipment						504,901		472,028
	Total Other Noninterest Expense						2,824,577		2,397,299
	Total Noninterest Expense						11,029,317		8,588,984
		Income (Loss) Before Income Tax					(296,429)		(1,566,134)
		Income Tax					67,244		-
		Net Income (Loss)					$                 (363,673)		$              (1,566,134)
	Net Income (Loss) per Share
		Basic					$                      (0.06)		$                      (0.27)
		Diluted					$                      (0.06)		$                      (0.27)
	Weighted Average Shares Outstanding
		Basic					6,602,984		5,723,532
		Diluted					6,602,984		5,723,532
	Pre-provision, Pre-tax Income (Loss)						$               1,021,297		$                 (375,098)

 

Triad Business Bank
Key Ratios & Other Information (Unaudited)
							Year Ended						Year Ended
							12/31/2022						12/31/2021
							Interest						Interest
							Income/		Yield/				Income/		Yield/
					Balance		Expense		Rate		Balance		Expense		Rate
Yield on Average Loans
Average PPP Loans					$       4,052,156		$        289,109		7.135 %		$    50,390,159		$  2,281,282		4.527 %
Average Core Loans					234,635,751		9,651,275		4.113 %		113,210,744		4,260,401		3.763 %
Yield on Average Investment Securities					$  141,308,899		$    3,570,880		2.527 %		$    83,098,173		$  1,973,655		2.375 %
Cost of Average Interest-bearing Liabilities					$  247,277,337		$    2,717,373		1.099 %		$  178,405,291		$  1,233,803		0.692 %
Net Interest Margin
Interest Income							$  14,180,762						$  8,606,470
Interest Expense							2,717,373						1,233,803
Average Earnings Assets					$  412,658,858						$  289,908,011
Net Interest Income & Net Interest Margin							11,463,389		2.778 %				7,372,667		2.543 %
Loan to Asset Ratio
Loan Balance					$  273,048,889						$  179,262,833
Total Assets					445,108,817				61.344 %		372,981,729				48.062 %
Leverage Ratio
Tier 1 Capital					$    58,490,295						$    58,141,721
Average Total Assets					470,154,080						369,837,690
Average FRB Borrowings					-				12.441 %		12,049,791				16.250 %
Unfunded Commitments to Extend Credit					$  102,576,003						$    86,746,649
Standby Letters of Credit					277,240						-

 

Triad Business Bank
Balance Sheet (Unaudited)						December 31, 2022		September 30, 2022		June 30, 2022		March 31, 2022		December 31, 2021
	Assets
	Cash & Due from Banks					$             30,177,676		$               47,037,775		$   46,737,951		$       20,310,759		$             38,743,278
	Securities					137,158,352		135,237,677		139,131,597		141,254,967		149,560,211
	Federal Funds Sold					-		-		-		-		-
	PPP Loans					848,172		928,829		2,273,307		7,592,431		11,605,363
	Core Loans					272,200,717		252,906,111		236,584,017		217,654,388		167,657,470
	Allowance for Loan Loss					(3,418,841)		(3,161,326)		(2,956,667)		(2,727,138)		(2,101,115)
	Loans, Net					269,630,048		250,673,614		235,900,657		222,519,681		177,161,718
	Other Assets					8,142,741		8,379,460		8,116,313		8,133,919		7,516,522
	Total Assets					$           445,108,817		$             441,328,526		$  429,886,518		$     392,219,326		$           372,981,729
	Liabilities
	Demand Deposits					$           176,820,321		$             134,843,448		$  146,584,560		$     101,451,870		$           100,963,064
	Interest-bearing NOW					13,209,174		19,567,049		32,071,869		41,499,830		42,820,018
	Interest-bearing Savings & MMA					159,857,410		195,380,253		165,238,615		149,857,953		155,805,422
	Time Deposits					42,975,369		49,300,059		40,461,260		40,098,022		5,731,398
	Total Deposits					392,862,274		399,090,809		384,356,304		332,907,675		305,319,902
	Other Borrowings					10,000,000		-		-		7,232,282		8,033,689
	Federal Funds Purchased					-		-		-		-		-
	Other Liabilities					3,807,240		3,008,372		2,473,355		2,648,360		2,651,588
	Total Liabilities					406,669,514		402,099,181		386,829,659		342,788,317		316,005,179
	Shareholders' Equity
	Common Stock					65,824,785		65,622,058		65,421,510		65,244,746		65,112,537
	Accumulated Deficit					(7,334,490)		(7,413,290)		(7,640,872)		(7,539,404)		(6,970,816)
	Accumulated Other Comprehensive Loss					(20,050,992)		(18,979,423)		(14,723,779)		(8,274,333)		(1,165,171)
	Total Shareholders' Equity					38,439,303		39,229,345		43,056,859		49,431,009		56,976,550
	Total Liabilities & Shareholders' Equity					$           445,108,817		$             441,328,526		$  429,886,518		$     392,219,326		$           372,981,729
	Shares Outstanding					6,602,984		6,602,984		6,602,984		6,602,984		6,602,984
	Tangible Book Value per Share					$                       5.82		$                        5.94		$             6.52		$                7.49		$                       8.63

 

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, 2022		September 30, 2022		June 30, 2022		March 31, 2022		December 31, 2021
	Interest Income
	Interest & Fees on PPP Loans						$                                          2,267		$                                       32,081		$                                     111,590		$                                     143,170		$                                     367,328
	Interest & Fees on Core Loans						3,221,915		2,639,317		2,107,818		1,682,226		1,366,047
	Interest & Dividend Income on Securities						966,457		926,042		873,881		804,501		751,493
	Interest Income on Balances Due from Banks						356,933		155,882		61,152		10,672		19,281
	Other Interest Income						46,138		22,127		5,877		10,717		11,068
	Total Interest Income						4,593,710		3,775,449		3,160,318		2,651,286		2,515,217
	Interest Expense
	Interest on NOW Deposits						83,153		62,688		48,086		57,028		49,219
	Interest on Savings & MMA Deposits						939,932		430,711		223,635		203,850		285,101
	Interest on Time Deposits						235,806		162,894		76,666		20,459		10,930
	Interest on Federal Funds Purchased						-		470		717		918		-
	Interest on Borrowings						41,303		33,733		12,928		11,739		12,565
	Other Interest Expense						40,651		18,316		2,750		8,940		10,036
	Total Interest Expense						1,340,845		708,812		364,782		302,934		367,851
	Net Interest Income						3,252,865		3,066,637		2,795,536		2,348,352		2,147,366
		Provision for Loan Losses					257,515		204,659		229,529		626,024		449,210
	Net Interest Income After Provision for LL						2,995,350		2,861,978		2,566,007		1,722,328		1,698,156
	Total Noninterest Income						162,873		303,701		146,953		129,855		114,725
	Total Gain (Loss) on Securities						(94,500)		(2,856)		(46,893)		(11,907)		20,684
	Noninterest Expense
	Salaries & Benefits						2,086,924		2,052,870		1,901,183		1,658,862		1,573,671
	Premises & Equipment						111,398		144,455		126,979		122,069		119,100
	Total Other Noninterest Expense						758,263		720,716		721,227		624,372		677,557
	Total Noninterest Expense						2,956,585		2,918,041		2,749,389		2,405,303		2,370,328
		Income (Loss) Before Income Tax					107,138		244,782		(83,322)		(565,027)		(536,763)
		Income Tax					28,338		17,199		18,146		3,561		-
		Net Income (Loss)					$                             78,800		$                           227,583		$                          (101,468)		$                          (568,588)		$                          (536,763)
	Net Income (Loss) per Share
		Basic					$                                0.01		$                                0.03		$                               (0.02)		$                               (0.09)		$                               (0.08)
		Diluted					$                                0.01		$                                0.03		$                               (0.02)		$                               (0.09)		$                               (0.08)
	Weighted Average Shares Outstanding
		Basic					6,602,984		6,602,984		6,602,984		6,602,984		6,602,984
		Diluted					6,842,684		6,842,779		6,602,984		6,602,984		6,602,984
	Pre-provision, Pre-tax Income (Loss)						$                           364,653		$                           449,441		$                           146,207		$                             60,997		$                            (87,553)

 

Triad Business Bank
Non-GAAP Measures (Unaudited)
Tangible Book Value
								Actual 12/31/2022		Non-GAAP 12/31/2022
Total Shareholders' Equity								$ 38,439,303		$ 38,439,303
Eliminate Deferred Tax Asset Valuation Allowance								-		1,522,022
Eliminate Accumulated Other Comprehensive Loss								-		20,050,992
Adjusted Shareholders' Equity								$ 38,439,303		$ 60,012,317
Shares Outstanding								6,602,984		6,602,984
Tangible Book Value per Share								$            5.82		$            9.09
Effect of Non-GAAP Measures on Tangible Book Value										$            3.27
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, 2022 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
								Qtr Ended 12/31/2022		Qtr Ended 9/30/2022		Qtr Ended 6/30/2022
Income (Loss) Before Income Tax								$      107,138		$      244,782		$             (83,322)
Provision for Loan Losses								257,515		204,659		229,529
Pre-provision Income Before Income Tax (Non-GAAP)								$      364,653		$      449,441		$            146,207
The pre-provision income is a measure of operating performance exclusive of potential losses from lending.

 

Triad Business Bank
Key Ratios & Other Information (Unaudited)
							Quarter Ended						Quarter Ended						Quarter Ended
							12/31/2022						9/30/2022						6/30/2022
							Interest						Interest						Interest
							Income/		Yield/				Income/		Yield/				Income/		Yield/
					Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Yield on Average Loans
Average PPP Loans					$          877,145		$                2,267		1.025 %		$       1,535,894		$             32,081		8.287 %		$       3,314,501		$           111,590		13.504 %
Average Core Loans					266,727,991		3,221,915		4.792 %		249,410,110		2,639,317		4.198 %		227,417,815		2,107,818		3.718 %
Yield on Average Investment Securities					$  135,664,230		$           966,457		2.826 %		$  140,999,639		$           926,042		2.606 %		$  142,754,858		$           873,881		2.455 %
Cost of Average Interest-bearing Liabilities					$  259,707,088		$       1,340,845		2.048 %		$  261,272,291		$           708,812		1.076 %		$  246,148,158		$           364,782		0.594 %
Net Interest Margin
Interest Income							$       4,593,710						$       3,775,449						$       3,160,318
Interest Expense							1,340,845						708,812						364,782
Average Earnings Assets					$  442,777,435						$  423,153,761						$  404,352,657
Net Interest Income & Net Interest Margin							3,252,865		2.915 %				3,066,637		2.875 %				2,795,536		2.773 %
Loan to Asset Ratio
Loan Balance					$  273,048,889						$  253,834,940						$  238,857,324
Total Assets					445,108,817				61.344 %		441,328,526				57.516 %		429,886,518				55.563 %
Leverage Ratio
Tier 1 Capital					$    58,490,295						$    58,208,768						$    57,780,638
Average Total Assets					470,154,080						445,828,670						425,001,436
Average FRB Borrowings					-				12.441 %		-				13.056 %		2,332,853				13.670 %
Unfunded Commitments to Extend Credit					$  102,576,003						$    96,122,332						$    89,833,906
Standby Letters of Credit					277,240						277,240						27,240

 

Triad Business Bank
Capital and Capital Ratios (Unaudited)
					Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
					12/31/2022				9/30/2022				6/30/2022				3/31/2022				12/31/2021
					Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)					$  61,909		15.45 %		$  61,370		16.26 %		$  60,713		16.87 %		$  60,388		17.87 %		$  60,243		21.40 %
Tier 1 Capital (to risk-weighted assets)					$  58,490		14.60 %		$  58,209		15.42 %		$  57,781		16.05 %		$  57,705		17.08 %		$  58,142		20.65 %
Tier 1 Capital (to average assets)					$  58,490		12.44 %		$  58,209		13.06 %		$  57,781		13.67 %		$  57,705		14.95 %		$  58,142		16.25 %
Minimum To Be Well-Capitalized Under
Prompt Corrective Action Provisions
(dollars in thousands)
Total Capital (to risk-weighted assets)					$  40,000		10.00 %		$  38,000		10.00 %		$  36,000		10.00 %		$  34,000		10.00 %		$  28,000		10.00 %
Tier 1 Capital (to risk-weighted assets)					$  32,000		8.00 %		$  30,000		8.00 %		$  29,000		8.00 %		$  27,000		8.00 %		$  23,000		8.00 %
Tier 1 Capital (to average assets)					$  24,000		5.00 %		$  22,000		5.00 %		$  21,000		5.00 %		$  19,000		5.00 %		$  18,000		5.00 %

 

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SOURCE Triad Business Bank

FAQ

What are the 2022 earnings results for TBBC?

TBBC reported a net revenue of $12.1 million and a net loss of $364,000 for 2022.

How much did core loans increase for TBBC in 2022?

Core loans increased by 62%, reaching $272.2 million.

What is the net interest margin for TBBC in Q4 2022?

The net interest margin for TBBC increased to 2.92% in Q4 2022.

What is TBBC's outlook for 2023?

TBBC expects continued trends of strong loan and deposit growth, along with further profitability in 2023.