Triad Business Bank (OTC Pink - "TBBC"), August 6, 2024, Announces Unaudited Second Quarter 2024 Results

Rhea-AI Summary

Triad Business Bank (OTC Pink: TBBC) announced its unaudited Q2 2024 results. Key highlights include:

• Raised $6.0 million in additional capital
• Reduced annual operating costs by $2.0 million
• Net loss of $611,000 for Q2 2024
• Loan balances increased by $4.2 million to $363.4 million
• Added 26 new business relationships in Q2
• Shareholders' equity increased $6.5 million
• Total capital levels at 13.3% of risk-weighted assets

The bank aims to achieve profitability in the final two quarters of 2024. Net interest income increased to $2.7 million, while the net interest margin slightly decreased to 2.08%. The bank's loan portfolio grew 18% annualized through the first six months of 2024.

Positive

• Raised $6.0 million in additional capital, strengthening the bank's financial position
• Reduced annual operating costs by $2.0 million, improving efficiency
• Loan balances increased by $4.2 million quarter-over-quarter and $29.3 million year-over-year
• Added 26 new business relationships in Q2 2024
• Shareholders' equity increased $6.5 million, primarily due to the capital raise
• Total capital levels well-capitalized at 13.3% of risk-weighted assets
• Net interest income increased $56,000 to $2.7 million in Q2 2024

Negative

• Net loss of $611,000 for Q2 2024
• Core operating loss (excluding provision for credit losses and taxes) of $610,000 in Q2 2024
• Net interest margin slightly decreased by two basis points to 2.08%
• One-time loss of $136,000 on disposal of SBIC investment
• Total assets declined $5.7 million to $521.4 million
• Deposits decreased $33.1 million in Q2 2024

GREENSBORO, N.C., Aug. 6, 2024 /PRNewswire/ --

Overview

During the second quarter of 2024, Triad Business Bank (the "Bank") executed several significant initiatives.  Ramsey Hamadi, Chief Executive Officer, commented, "In the second quarter of 2024, the Bank closed on $6.0 million of additional capital and reduced structural operating costs by $2.0 million annually and in doing so refocused the Bank's sales and service efforts on the Bank's vision of serving small and mid-sized businesses in the Triad.  Following the capital raise, the board of directors and executive management own 31% of the Bank's outstanding shares.  Each of these initiatives contribute to the Bank's goal of being profitable in the final two quarters of 2024.  In order to reduce costs and reposition the Bank's balance sheet, the Bank recognized a one-time expense in the second quarter of $87,000 for severance and a loss on the disposal of a Small Business Investment Company ("SBIC") investment of $136,000.  For the second quarter of 2024, the Bank had a net loss of $611,000.  Excluding one-time expenses, the Bank had a net loss of $388,000.  The reduction in operating costs from the structural changes will not be fully realized until the third quarter of 2024.

"During the second quarter of 2024, the Bank continued its positive growth trends.  Loan balances increased by $4.2 million for the quarter and $29.3 million for the year to $363.4 million at period end.  Through six months, the annualized loan growth rate totaled 18%.  Loan yields continued to increase and core deposit operating accounts also expanded.  The Bank added 26 new business relationships during the quarter with June 30th demand deposit and money market balances totaling $6.7 million.  In the first six months of 2024, the Bank added 68 new business relationships with period end demand deposit and money market balances totaling $10.4 million.  In the last six months, the Bank processed $2.9 billion of transactions, including $1.5 billion in the second quarter, which compares to $2.8 billion and $1.4 billion for the same periods in 2023.   Shareholders' equity increased $6.5 million primarily due to the capital raise in the second quarter.  Total capital levels were well-capitalized at $64.6 million, or 13.3% of total risk weighted assets."

Income Statement Comparison 

The Bank's net loss totaled $611,000 for the quarter ended June 30, 2024 compared to a net loss of $101,000 for the quarter ended March 31, 2024.  Core operating results, a non-GAAP measurement which excludes the provision for credit losses and taxes, were a loss of $610,000 for the second quarter compared to a loss of $435,000 for the linked quarter.  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, and 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 $56,000 to $2.7 million for the second quarter of 2024 from $2.6 million for the prior quarter.  The Bank's net interest margin for the second quarter of 2024 decreased slightly by two basis points to 2.08% compared to the previous quarter.  While the yield on earning assets increased in the second quarter over the first quarter of 2024, the increase in the cost of interest-bearing liabilities resulted in the net interest margin remaining fairly stable.

Interest income increased $312,000, or 5%, to $7.0 million in the second quarter of 2024 compared to $6.7 million in the linked quarter.  The growth in interest income was due primarily to the growth in average loans, which increased $12.8 million during the quarter to $361.8 million, and an increase in the weighted average yield on average loans to 6.10% in the second quarter of 2024 compared to 6.06% in the first quarter of 2024.  However, the weighted average rate on interest-bearing liabilities increased to 4.51% in the second quarter of 2024 compared to 4.34% in the first quarter.  

In the second quarter of 2024, the Bank sold an investment in a SBIC and incurred a one-time loss of $136,000.  This loss is reflected in the total gain (loss) on securities in the income statement.

Noninterest expense increased $30,000 in the second quarter of 2024 over the prior quarter.  In connection with the Bank's expense reduction initiative, there was a one-time severance expense of $87,000 in the second quarter.  Salaries and benefits expense decreased $120,000, or 5%, in the second quarter of 2024 compared to the linked quarter due to the elimination of personnel positions.  The Bank had 56 employees at the end of June 2024 compared to 61 at the end of March 2024.  Other operating expenses increased $68,000 for the second quarter of 2024 over the previous quarter due principally to an increase in regulatory assessments.

Balance Sheet Comparison 

Total assets declined $5.7 million to $521.4 million at June 30, 2024 from $527.1 million at March 31, 2024.  During the second quarter of 2024, loans increased $4.2 million and deposits decreased $33.1 million.  Core customer deposits decreased $12.9 million during the second quarter of 2024 while wholesale funding (brokered deposits) decreased $20.2 million.  Core time deposits, including CDARS reciprocal deposits, increased $13.0 million, or 40%, in the second quarter over the linked quarter.  Other borrowings increased $21.0 million to $30.0 million at June 30, 2024 from $9.0 million at March 31, 2024. 

Shareholders' equity increased $6.5 million during the second quarter of 2024 to $43.4 million primarily due to the $6.0 million capital raise.  Accumulated other comprehensive income ("AOCI") loss improved by $1.0 million in the second quarter to a loss of $17.1 million from a loss of $18.1 million in the prior quarter.  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 June 30, 2024:

Capital and Capital Ratios

					Quarter Ended
					6/30/2024
					Amount		Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)					$  64,581		13.26 %
Tier 1 Capital (to risk-weighted assets)					$  60,507		12.43 %
Tier 1 Capital (to average assets)					$  60,507		11.05 %
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)					$  39,000		8.00 %
Tier 1 Capital (to average assets)					$  27,000		5.00 %

Loans

The Bank's loans increased $4.2 million, or 1%, to $363.4 million at March 31, 2024 compared to $359.2 million at March 31, 2024 and increased $47.2 million, or 15%, from $316.2 million at June 30, 2023.  While not included in loans outstanding, the Bank also had unfunded loan commitments of $127.4 million, bringing total loans outstanding and unfunded commitments to $490.8 million at June 30, 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 June 30, 2024, approximately 50% of the Bank's outstanding loan portfolio was composed of C&I loans:

Loan Diversification

		Quarter Ended		Percentage of
Loan Category		6/30/2024		Loan Portfolio
Other Construction & Land Development		$        55,799,138
Nonowner-occupied Commercial Real Estate		122,983,869
Total Commercial Real Estate		178,783,007		49 %
Owner-occupied Real Estate		96,647,224
C&I		85,444,901
Total C&I		182,092,125		50 %
Other Revolving Loans		2,534,434		1 %
Total		$      363,409,566

Credit Risk and Allowance for Credit Losses

The Bank had no reportable past due loans or nonperforming assets at June 30, 2024 or at the prior quarter end.  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 was $3.7 million at June 30 and March 31, 2024, which was 1.02% and 1.03% of outstanding loans, respectively.  The allowance for credit losses on unfunded loan commitments, recorded as a liability on the balance sheet, was $366,000, or 0.29% of the unfunded commitments, at June 30, 2024 compared to $392,000, or 0.31%, at March 31, 2024.

Deferred Tax Asset and AOCI (Non-GAAP Measures)

The Bank's GAAP tangible book value per share was $5.44 at June 30, 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 $7.90 at June 30, 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 June 30, 2024, the Bank had an aggregate AOCI loss of $17.1 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 its liabilities quickly 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)						June 30, 2024		March 31, 2024			$ Change		% Change
	Assets
	Cash & Due from Banks					$              21,551,174		$              30,489,026			$              (8,937,852)		-29 %
	Securities					130,253,022		131,199,978			(946,956)		-1 %
	Federal Funds Sold					-		-			-		0 %
	Loans					363,409,566		359,199,494			4,210,072		1 %
	Allowance for Credit Losses ("ACL")					(3,708,405)		(3,681,954)			(26,451)		-1 %
	Loans, Net					359,701,161		355,517,540			4,183,621		1 %
	Other Assets					9,915,475		9,943,701			(28,226)		0 %
	Total Assets					$            521,420,832		$            527,150,245			$              (5,729,413)		-1 %
	Liabilities
	Demand Deposits					$            109,414,180		$            102,564,892			$               6,849,288		7 %
	ICS Reciprocal - Checking					4,089		11,390,196			(11,386,107)		-100 %
	Commercial Operating Accounts					109,418,269		113,955,088			(4,536,819)		-4 %
	Interest-bearing NOW					19,161,806		21,532,867			(2,371,061)		-11 %
	Core MMA & Savings					93,142,481		102,969,388			(9,826,907)		-10 %
	ICS Reciprocal - MMA					32,959,556		42,157,824			(9,198,268)		-22 %
	Total MMA & Savings					126,102,037		145,127,212			(19,025,175)		-13 %
	Core Time Deposits					26,866,489		21,153,172			5,713,317		27 %
	CDARS - Reciprocal					18,975,442		11,701,169			7,274,273		62 %
	Brokered CDs					143,942,948		164,119,991			(20,177,043)		-12 %
	Total Time Deposits					189,784,879		196,974,332			(7,189,453)		-4 %
	Total Deposits					444,466,991		477,589,499			(33,122,508)		-7 %
	Other Borrowings					30,000,000		9,000,000			21,000,000		233 %
	Federal Funds Purchased					-		-			-		0 %
	ACL on Unfunded Commitments					366,167		392,328			(26,161)		-7 %
	Other Liabilities					3,174,047		3,205,767			(31,720)		-1 %
	Total Liabilities					478,007,205		490,187,594			(12,180,389)		-2 %
	Shareholders' Equity
	Common Stock					72,997,463		66,938,869			6,058,594		9 %
	Accumulated Deficit					(12,491,018)		(11,880,398)			(610,620)		-5 %
	Accumulated Other Comprehensive Loss					(17,092,818)		(18,095,820)			1,003,002		6 %
	Total Shareholders' Equity					43,413,627		36,962,651			6,450,976		17 %
	Total Liabilities & Shareholders' Equity					$            521,420,832		$            527,150,245			$              (5,729,413)		-1 %
	Shares Outstanding					7,985,194		6,695,121			1,290,073		19 %
	Tangible Book Value per Share					$                       5.44		$                       5.52			$                      (0.08)		-1 %

 

Triad Business Bank
Income Statement (Unaudited)							For Three Months Ended		For Three Months Ended
							June 30, 2024		March 31, 2024			$ Change		% Change
	Interest Income
	Interest & Fees on Loans						$                            5,483,641		$                            5,253,323			$                               230,318		4 %
	Interest & Dividend Income on Securities						1,087,361		1,090,009			(2,648)		0 %
	Interest Income on Balances Due from Banks						369,258		283,289			85,969		30 %
	Other Interest Income						85,328		87,369			(2,041)		-2 %
	Total Interest Income						7,025,588		6,713,990			311,598		5 %
	Interest Expense
	Interest on Checking Deposits						216,178		218,511			(2,333)		-1 %
	Interest on Savings & MMA Deposits						1,427,510		1,430,372			(2,862)		0 %
	Interest on Time Deposits						2,501,019		2,161,020			339,999		16 %
	Interest on Federal Funds Purchased						155		-			155		100 %
	Interest on Borrowings						122,057		200,034			(77,977)		-39 %
	Other Interest Expense						65,692		66,637			(945)		-1 %
	Total Interest Expense						4,332,611		4,076,574			256,037		6 %
	Net Interest Income						2,692,977		2,637,416			55,561		2 %
		Provision for (Reversal of) Credit Losses					291		(334,087)			334,378		100 %
	Net Interest Income After Provision for CL						2,692,686		2,971,503			(278,817)		-9 %
	Total Noninterest Income						222,076		283,910			(61,834)		-22 %
	Total Gain (Loss) on Securities						(118,667)		20,309			(138,976)		-684 %
	Noninterest Expense
	Salaries & Benefits						2,089,993		2,210,023			(120,030)		-5 %
	Severance - One-time Expense						87,153		-			87,153		100 %
	Premises & Equipment						131,464		136,442			(4,978)		-4 %
	Total Other Noninterest Expense						1,098,106		1,030,167			67,939		7 %
	Total Noninterest Expense						3,406,716		3,376,632			30,084		1 %
		Loss Before Income Tax					(610,621)		(100,910)			(509,711)		-505 %
		Income Tax					-		-			-		0 %
		Net Loss					$                      (610,621)		$                      (100,910)			$                      (509,711)		-505 %
	Net Loss per Share
		Basic					$                           (0.09)		$                           (0.02)			$                           (0.07)		-496 %
		Diluted					$                           (0.09)		$                           (0.02)			$                           (0.07)		-496 %
	Weighted Average Shares Outstanding
		Basic					6,800,657		6,695,121			105,536		2 %
		Diluted					6,800,657		6,695,121			105,536		2 %
	Pre-provision, Pre-tax Loss						$                      (610,330)		$                      (434,997)			$                      (175,333)		-40 %

 

Triad Business Bank
Key Ratios & Other Information (Unaudited)
							Quarter Ended						Quarter Ended
							6/30/2024						3/31/2024
							Interest						Interest
							Income/		Yield/				Income/		Yield/
					Balance		Expense		Rate		Balance		Expense		Rate
Yield on Average Loans					$   361,771,395		$        5,483,641		6.096 %		$      348,932,123		$          5,253,323		6.055 %
Yield on Average Investment Securities					$   130,130,898		$        1,087,361		3.361 %		$      133,568,374		$          1,090,009		3.282 %
Yield on Average Interest-earning Assets					$   519,890,371		$        7,025,588		5.435 %		$      504,440,542		$          6,713,990		5.353 %
Cost of Average Interest-bearing Liabilities					$   386,698,922		$        4,332,611		4.506 %		$      377,862,470		$          4,076,574		4.339 %
Net Interest Margin
Interest Income							$        7,025,588						$          6,713,990
Interest Expense							4,332,611						4,076,574
Average Earnings Assets					$   519,890,371						$      504,440,542
Net Interest Income & Net Interest Margin							$        2,692,977		2.083 %				$          2,637,416		2.103 %
Loan to Asset Ratio
Loan Balance					$   363,409,566						$      359,199,494
Total Assets					521,420,832				69.696 %		527,150,245				68.140 %
Leverage Ratio
Tier 1 Capital					$     60,506,445						$         55,058,471
Average Total Assets					547,797,162				11.045 %		530,957,281				10.370 %
Unfunded Commitments to Extend Credit					$   127,353,161						$      128,089,831
Standby Letters of Credit					186,252						186,252

 

Triad Business Bank
Balance Sheet (Unaudited)						June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
	Assets
	Cash & Due from Banks					$              21,551,174		$              30,489,026		$              33,610,971		$              28,774,582		$              52,211,693
	Securities					130,253,022		131,199,978		137,537,443		135,448,032		139,889,880
	Federal Funds Sold					-		-		-		-		-
	Loans					363,409,566		359,199,494		334,142,073		328,954,619		316,210,980
	Allowance for Credit Losses ("ACL")					(3,708,405)		(3,681,954)		(3,729,925)		(3,738,836)		(3,509,593)
	Loans, Net					359,701,161		355,517,540		330,412,148		325,215,783		312,701,387
	Other Assets					9,915,475		9,943,701		9,591,119		8,845,602		8,296,216
	Total Assets					$            521,420,832		$            527,150,245		$            511,151,681		$            498,283,999		$            513,099,176
	Liabilities
	Demand Deposits					$            109,414,180		$            102,564,892		$              99,389,815		$            101,103,791		$            104,796,822
	ICS Reciprocal - Checking					4,089		11,390,196		14,204,733		11,241,300		29,689,563
	Commercial Operating Accounts					109,418,269		113,955,088		113,594,548		112,345,091		134,486,385
	Interest-bearing NOW					19,161,806		21,532,867		22,518,830		20,914,221		19,885,942
	Core MMA & Savings					93,142,481		102,969,388		85,891,021		95,161,537		95,250,866
	ICS Reciprocal - MMA					32,959,556		42,157,824		76,963,368		73,887,703		78,325,692
	Total MMA & Savings					126,102,037		145,127,212		162,854,389		169,049,240		173,576,558
	Core Time Deposits					26,866,489		21,153,172		11,019,913		10,598,293		9,541,015
	CDARS - Reciprocal					18,975,442		11,701,169		10,601,322		9,555,900		10,343,801
	Brokered CDs					143,942,948		164,119,991		139,859,453		129,584,145		120,201,839
	Total Time Deposits					189,784,879		196,974,332		161,480,688		149,738,338		140,086,655
	Total Deposits					444,466,991		477,589,499		460,448,455		452,046,890		468,035,540
	Other Borrowings					30,000,000		9,000,000		9,000,000		9,000,000		5,000,000
	Federal Funds Purchased					-		-		-		-		-
	ACL on Unfunded Commitments					366,167		392,328		678,444		647,068		620,519
	Other Liabilities					3,174,047		3,205,767		3,422,078		2,750,602		2,803,124
	Total Liabilities					478,007,205		490,187,594		473,548,977		464,444,560		476,459,183
	Shareholders' Equity
	Common Stock					72,997,463		66,938,869		66,692,747		66,448,450		66,206,484
	Accumulated Deficit					(12,491,018)		(11,880,398)		(11,779,488)		(10,978,995)		(10,320,428)
	Accumulated Other Comprehensive Loss					(17,092,818)		(18,095,820)		(17,310,555)		(21,630,016)		(19,246,063)
	Total Shareholders' Equity					43,413,627		36,962,651		37,602,704		33,839,439		36,639,993
	Total Liabilities & Shareholders' Equity					$            521,420,832		$            527,150,245		$            511,151,681		$            498,283,999		$            513,099,176
	Shares Outstanding					7,985,194		6,695,121		6,695,121		6,693,965		6,693,965
	Tangible Book Value per Share					$                       5.44		$                       5.52		$                       5.62		$                       5.06		$                       5.47

 

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
							June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
	Interest Income
	Interest & Fees on Loans						$                            5,483,641		$                            5,253,323		$                            4,853,516		$                            4,547,570		$                                4,156,500
	Interest & Dividend Income on Securities						1,087,361		1,090,009		1,170,658		1,171,364		1,090,464
	Interest Income on Balances Due from Banks						369,258		283,289		322,412		405,520		391,371
	Other Interest Income						85,328		87,369		83,452		82,167		76,387
	Total Interest Income						7,025,588		6,713,990		6,430,038		6,206,621		5,714,722
	Interest Expense
	Interest on Checking Deposits						216,178		218,511		233,811		217,879		184,372
	Interest on Savings & MMA Deposits						1,427,510		1,430,372		1,484,151		1,508,522		1,329,486
	Interest on Time Deposits						2,501,019		2,161,020		1,829,874		1,608,518		1,228,575
	Interest on Federal Funds Purchased						155		-		-		-		170
	Interest on Borrowings						122,057		200,034		223,442		161,457		187,215
	Other Interest Expense						65,692		66,637		67,927		67,359		62,970
	Total Interest Expense						4,332,611		4,076,574		3,839,205		3,563,735		2,992,788
	Net Interest Income						2,692,977		2,637,416		2,590,833		2,642,886		2,721,934
		Provision for (Reversal of) Credit Losses					291		(334,087)		322,715		255,792		74,526
	Net Interest Income After Provision for CL						2,692,686		2,971,503		2,268,118		2,387,094		2,647,408
	Total Noninterest Income						222,076		283,910		294,628		185,914		163,673
	Total Gain (Loss) on Securities						(118,667)		20,309		6,300		(2,800)		4,200
	Noninterest Expense
	Salaries & Benefits						2,089,993		2,210,023		2,276,590		2,155,982		2,110,577
	Severance - One-time Expense						87,153		-		-		-		-
	Premises & Equipment						131,464		136,442		137,398		125,426		135,379
	Total Other Noninterest Expense						1,098,106		1,030,167		955,551		947,367		1,005,578
	Total Noninterest Expense						3,406,716		3,376,632		3,369,539		3,228,775		3,251,534
		Loss Before Income Tax					(610,621)		(100,910)		(800,493)		(658,567)		(436,253)
		Income Tax					-		-		-		-		-
		Net Loss					$                      (610,621)		$                      (100,910)		$                      (800,493)		$                      (658,567)		$                         (436,253)
	Net Loss per Share
		Basic					$                           (0.09)		$                           (0.02)		$                           (0.12)		$                           (0.10)		$                              (0.07)
		Diluted					$                           (0.09)		$                           (0.02)		$                           (0.12)		$                           (0.10)		$                              (0.07)
	Weighted Average Shares Outstanding
		Basic					6,800,657		6,695,121		6,694,694		6,693,965		6,622,596
		Diluted					6,800,657		6,695,121		6,694,694		6,693,965		6,622,596
	Pre-provision, Pre-tax Loss						$                      (610,330)		$                      (434,997)		$                      (477,778)		$                      (402,775)		$                         (361,727)

 

Triad Business Bank
Capital and Capital Ratios (Unaudited)
					Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
					6/30/2024				3/31/2024				12/31/2023				9/30/2023				6/30/2023
					Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)					$ 64,581		13.26 %		$ 59,133		12.22 %		$ 59,322		12.70 %		$ 59,855		12.89 %		$ 60,017		13.41 %
Tier 1 Capital (to risk-weighted assets)					$ 60,507		12.43 %		$ 55,059		11.38 %		$ 54,913		11.76 %		$ 55,469		11.94 %		$ 55,886		12.48 %
Tier 1 Capital (to average assets)					$ 60,507		11.05 %		$ 55,059		10.37 %		$ 54,913		10.52 %		$ 55,469		10.76 %		$ 55,886		11.11 %
Minimum To Be Well-Capitalized Under
Prompt Corrective Action Provisions
(dollars in thousands)
Total Capital (to risk-weighted assets)					$ 49,000		10.00 %		$ 48,000		10.00 %		$ 47,000		10.00 %		$ 46,000		10.00 %		$ 45,000		10.00 %
Tier 1 Capital (to risk-weighted assets)					$ 39,000		8.00 %		$ 39,000		8.00 %		$ 37,000		8.00 %		$ 37,000		8.00 %		$ 36,000		8.00 %
Tier 1 Capital (to average assets)					$ 27,000		5.00 %		$ 27,000		5.00 %		$ 26,000		5.00 %		$ 26,000		5.00 %		$ 25,000		5.00 %

 

Triad Business Bank
Non-GAAP Measures (Unaudited)
Tangible Book Value
								Actual    6/30/2024		Non-GAAP 6/30/2024
Total Shareholders' Equity								$       43,413,627		$       43,413,627
Eliminate Deferred Tax Asset Valuation Allowance								-		2,590,606
Eliminate Accumulated Other Comprehensive Loss								-		17,092,818
Adjusted Shareholders' Equity								$       43,413,627		$       63,097,051
Shares Outstanding								7,985,194		7,985,194
Tangible Book Value per Share								$                  5.44		$                  7.90
Effect of Non-GAAP Measures on Tangible Book Value										$                  2.46
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 June 30, 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 6/30/2024		Qtr Ended 3/31/2024
Loss Before Income Tax								$           (610,621)		$           (100,910)
Provision for (Reversal of) Credit Losses								291		(334,087)
Pre-provision Loss Before Income Tax (Non-GAAP)								$           (610,330)		$           (434,997)
The pre-provision loss is a measure of operating performance exclusive of potential losses from lending.

 

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SOURCE Triad Business Bank

FAQ

What was Triad Business Bank's (TBBC) net loss in Q2 2024?

Triad Business Bank (TBBC) reported a net loss of $611,000 for the second quarter of 2024.

How much additional capital did Triad Business Bank (TBBC) raise in Q2 2024?

Triad Business Bank (TBBC) raised $6.0 million in additional capital during the second quarter of 2024.

What was the loan growth for Triad Business Bank (TBBC) in Q2 2024?

Triad Business Bank (TBBC) reported loan balance growth of $4.2 million in Q2 2024, reaching $363.4 million at period end.

How many new business relationships did Triad Business Bank (TBBC) add in Q2 2024?

Triad Business Bank (TBBC) added 26 new business relationships during the second quarter of 2024.

What was Triad Business Bank's (TBBC) net interest margin in Q2 2024?

Triad Business Bank's (TBBC) net interest margin for the second quarter of 2024 was 2.08%, a slight decrease of two basis points compared to the previous quarter.