Triad Business Bank (OTC Pink - "TBBC"), February 9, 2024, Announces Unaudited Results for 2023, Including Fourth Quarter Results

Rhea-AI Summary

Triad Business Bank (TBBC) achieved a $500 million total asset milestone despite interest rate volatility. In 2023, the Bank saw a 12% increase in customer deposit transactions, expanded commercial deposit customers by 24%, and originated 151 new loans totaling $163 million. The Bank reported a net loss of $4.3 million for 2023 with a decline in net interest margin. Total interest income increased by 64% to $23.2 million, while interest expense rose by $10 million. The Bank's capital position remains strong, with regulatory capital exceeding 'Well-Capitalized' requirements.

Positive

• Triad Business Bank (TBBC) achieved a significant milestone of $500 million in total assets despite facing interest rate volatility.
• In 2023, the Bank processed nearly $5.7 billion of customer deposit transactions, marking a 12% increase from the previous year.
• The Bank expanded its commercial deposit customers by 24% in 2023, originating 151 new loans totaling $163 million.
• Despite reporting a net loss of $4.3 million for 2023, the Bank saw a 64% increase in total interest income to $23.2 million.
• Interest expense rose by $10 million in 2023, impacting the Bank's net interest margin, which decreased to 2.22% for the year.
• Triad Business Bank's capital position remains strong, with regulatory capital exceeding the 'Well-Capitalized' requirements.

Negative

• The Bank reported a net loss of $4.3 million for 2023, reflecting financial challenges.
• Interest expense increased by $10 million in 2023, impacting the Bank's net interest margin negatively.
• Total deposit balances increased by $67.6 million in 2023, but customer deposits declined by $36 million.
• Shareholders' equity declined by $837,000 to $37.6 million at year end, reflecting a decrease in equity.
• The Bank's core operating loss totaled $1.4 million for 2023, contributing to the overall net loss reported.
• The Bank's net interest margin decreased to 2.22% in 2023 from 2.78% in 2022, indicating a decline in profitability.

GREENSBORO, N.C., Feb. 9, 2024 /PRNewswire/ --

Overview

CEO Ramsey K. Hamadi commented, "On December 31, 2023, Triad Business Bank (the "Bank") completed its third full year of operations and achieved the $500 million total asset milestone.  Despite volatility in the interest rate environment, the Bank continues to grow profitable commercial relationships, with sound credit administration, strong capital and a clear vision.  The Bank is narrowly focused on supporting commercial and industrial growth in the Triad.  The Bank processed nearly $5.7 billion of customer deposit transactions during 2023, which is a 12% increase from 2022.  In 2023, the Bank expanded its commercial deposit customers by 131 accounts, which was a 24% increase in its business relationships.  These new customers brought new deposit and loan relationships to the Bank.  For the year, the Bank originated 151 new loans totaling $163 million and resulted in $61 million of growth in outstanding loan balances.  Paramount in the Bank's business practice is to maintain sound credit administration.  At year end, the Bank had no past due or nonperforming loans." 

Rate Environment

The rapid rise in interest rates prior to 2023 resulted in improvement in the Bank's interest income faster than the cost of funds increased.  However, in 2023 this trend reversed with a rise in the cost of interest-bearing funds outpacing the rise in the Bank's interest income, resulting in a decline in the Bank's net interest margin.  Interest expense increased 366%, or $10 million, for the year.  Higher market interest rates led many deposit customers to maximize returns on excess liquidity.  So even as the Bank grew its commercial relationships, customer deposit balances declined.  Some of the Bank's largest deposit customers used funds to purchase businesses, treasury bonds and municipal securities.  Excluding declines in deposit balances of our 15 top customers, deposits grew by $58 million in 2023.  In total, customer deposits declined $36 million for the year.  The Bank replaced the loss of these low-cost deposits with higher-cost brokered deposits. 

Interest income rose $9 million, or 64%, compared to the prior year.  At year end, approximately 33% of the Bank's interest-earning assets had floating rates and carried current market yields.  In addition, 66% of the Bank's fixed rate loans at year end are expected to reprice within the next three years.  The Bank's strong growth rates combined with ongoing repricing of assets is expected to bring improvement in the Bank's operating performance.

Capital

The Bank's capital position remains strong.  In 2023, the Bank had a net loss of $4.3 million.  The results were impacted by a $1.75 million loss on an investment in a Signature Bank subordinated debt bond during the March quarter.  The core operating loss totaled $1.4 million for the year.  Despite these losses, regulatory capital remained strong, falling just $2.6 million during the year to $59.3 million, which is more than $12.0 million higher than needed for the Bank to be "Well-Capitalized."

Fourth Quarter Income Statement Comparison 

The Bank reported a net loss of $800,000, or $(0.12) per diluted share, for the three months ended December 31, 2023, compared to net income of $79,000, or $0.01 per diluted share, for the same period a year ago.  Core operating loss, a non-GAAP measurement which excludes the provision for credit losses and taxes, was $478,000 for the fourth quarter of 2023 compared to core earnings of $365,000 for the fourth quarter of 2022.

The Bank's net interest margin decreased to 2.09% in the fourth quarter of 2023 from 2.92% in the fourth quarter of 2022.  While the yield on earning assets increased in 2023 over 2022, the decline in customer deposits, the increase in higher-cost wholesale funding, and the increase in the cost of interest-bearing deposit accounts in 2023 resulted in the net interest margin compression.

Total interest income increased $1.8 million, or 40%, to $6.4 million in the fourth quarter of 2023 compared to $4.6 million in the fourth quarter of 2022.  The growth in interest income was due primarily to growth in income on core loans of 51% to $4.9 million.  The weighted average yield on average core loans increased to 5.79% in the fourth quarter of 2023 from 4.79% in the fourth quarter of 2022.  Income on investment securities totaled $1.2 million for the fourth quarter of 2023 compared to $966,000 for the fourth quarter of 2022.

Interest expense increased $2.5 million in the fourth quarter of 2023 to $3.8 million from $1.3 million in the fourth quarter of 2022 primarily as a result of Federal Reserve rate hikes.  The weighted average rate on interest-bearing liabilities increased to 4.19% in the fourth quarter of 2023 from 2.05% in the fourth quarter of 2022 due to higher deposit rates paid by the Bank resulting from the increase in market interest rates. 

Noninterest expense increased $413,000, or 14%, in the fourth quarter of 2023 to $3.4 million from $3.0 million in the fourth quarter of 2022.  Salaries and benefits expense totaled $2.3 million for the fourth quarter of 2023, which was an increase of $190,000, or 9%, over the fourth quarter of 2022 primarily due to staff additions.  The Bank had 62 employees at the end of 2023 compared to 56 at the end of 2022.

Annual Income Statement Comparison

The Bank reported a net loss of $4.3 million, or $(0.65) per diluted share, for the year ended December 31, 2023, compared to a net loss of $364,000, or $(0.06) per diluted share, for 2022.  Core operating loss, a non-GAAP measurement which excludes the provision for credit losses and taxes, was $1.4 million for the twelve-month period ended December 31, 2023, compared to core earnings of $1.0 million for the twelve-month period ended December 31, 2022.

The Bank's net interest margin decreased to 2.22% for 2023 from 2.78% for 2022.

Total interest income increased $9.1 million, or 64%, to $23.2 million for 2023 compared to $14.2 million for 2022.  The increase in interest income was due primarily to growth in income on core loans of 77% to $17.1 million.  The weighted average yield on average core loans increased to 5.52% for 2023 from 4.11% for 2022.  Income on investment securities totaled $4.4 million for 2023 compared to $3.6 million for 2022.

Interest expense increased $10.0 million in 2023 to $12.7 million from $2.7 million in 2022.  The weighted average rate on interest-bearing liabilities increased to 3.72% for 2023 from 1.10% for 2022.

In addition, the Bank's 2023 annual operating performance was negatively impacted by the $1.75 million loss in the first quarter on the Signature Bank subordinated debt bond which had been purchased in 2020.

Noninterest expense increased in 2023 to $12.9 million from $11.0 million, due in large part to the growth of the Bank and increased personnel to support the growth.

Annual Balance Sheet Comparison 

Total assets increased $66.1 million from $445.1 million at December 31, 2022 to $511.2 million at December 31, 2023.  Core loans increased $61.5 million to $333.7 million at December 31, 2023. 

Total deposit balances increased $67.6 million to $460.4 million at December 31, 2023.  Customer deposits decreased by a net amount of $36.1 million during the twelve-month period ended December 31, 2023, with an estimated $57.8 million of growth overshadowed by a $93.9 million decline in balances of the 15 top customers.  Brokered deposits increased $103.6 million.

Shareholders' equity declined $837,000 to $37.6 million at year end.  This decline reflected the combined impact of the $1.75 million charge-off on the Signature Bank subordinated debt bond, the $1.4 million core operating loss and the decrease in the AOCI loss of $2.7 million.  The charge-off represented less than 3% of the Bank's regulatory capital.  Accumulated other comprehensive income/loss ("AOCI") at December 31, 2023 was a loss $17.3 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 December 31, 2023:

Capital and Capital Ratios

					Quarter Ended
					12/31/2023
					Amount		Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)					$ 59,322		12.70 %
Tier 1 Capital (to risk-weighted assets)					$ 54,913		11.76 %
Tier 1 Capital (to average assets)					$ 54,913		10.52 %
Minimum To Be Well-Capitalized Under
Prompt Corrective Action Provisions
(dollars in thousands)
Total Capital (to risk-weighted assets)					$ 47,000		10.00 %
Tier 1 Capital (to risk-weighted assets)					$ 37,000		8.00 %
Tier 1 Capital (to average assets)					$ 26,000		5.00 %

 

Loans

The Bank's core loans increased $61.5 million, or 23%, to $333.7 million at December 31, 2023.  While not included in loans outstanding, the Bank also had unfunded loan commitments of $136.0 million, bringing total core loans outstanding and unfunded commitments to $469.7 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, 2023, approximately 51% of the Bank's outstanding core loan portfolio was composed of C&I loans:

Loan Diversification

				Percentage of
		Quarter Ended		Core Loan
Loan Category		12/31/2023		Portfolio
Other Construction & Land Development		$        62,479,933
Nonowner-occupied Commercial Real Estate		98,481,498
Total Commercial Real Estate		160,961,431		48 %
Owner-occupied Real Estate		89,081,870
C&I		82,180,190
Total C&I		171,262,060		51 %
Other Revolving Loans		1,436,482		1 %
Total		$      333,659,973

 

Credit Risk

The Bank had no past due loans or nonperforming assets at December 31, 2023.  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 $5.82 at December 31, 2022 to $5.62 at December 31, 2023.  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 $8.58 at December 31, 2023 compared to $9.09 at December 31, 2022.

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 $2.5 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 December 31, 2023, the Bank had an AOCI loss of $17.3 million.  Assuming the underlying investment securities are held to maturity and there are no credit losses, the value of the securities will return to 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

The fixed versus floating rate mix of the Bank's assets and liabilities has resulted in a substantial portion of the liabilities already reflecting increases in market rates whereas loans are repricing more slowly.  If current deposit and market rates remain stable, we expect the repricing of our core loan portfolio over the next several quarters will gradually improve the 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 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, 2023		December 31, 2022			$ Change		% Change
		Assets
		Cash & Due from Banks					$               33,610,971		$               30,177,676			$                3,433,295		11 %
		Securities					137,537,443		137,158,352			379,091		0 %
		Federal Funds Sold					-		-			-		0 %
		PPP Loans					482,100		848,172			(366,072)		-43 %
		Core Loans					333,659,973		272,200,717			61,459,256		23 %
		Allowance for Credit Losses ("ACL")					(3,729,925)		(3,418,841)			(311,084)		-9 %
		Loans, Net					330,412,148		269,630,048			60,782,100		23 %
		Other Assets					9,591,119		8,142,741			1,448,378		18 %
		Total Assets					$             511,151,681		$             445,108,817			$               66,042,864		15 %
		Liabilities
		Demand Deposits					$               99,389,815		$             176,820,321			$             (77,430,506)		-44 %
		ICS Reciprocal - Checking					14,204,733		-			14,204,733		100 %
		Commercial Operating Accounts					113,594,548		176,820,321			(63,225,773)		-36 %
		Interest-bearing NOW					22,518,830		13,209,174			9,309,656		70 %
		Core MMA & Savings					85,891,021		159,857,410			(73,966,389)		-46 %
		ICS Reciprocal - MMA					76,963,368		-			76,963,368		100 %
		Total MMA & Savings					162,854,389		159,857,410			2,996,979		2 %
		Core Time Deposits					11,019,913		3,748,773			7,271,140		194 %
		CDARS - Reciprocal					10,601,322		3,012,964			7,588,358		252 %
		Brokered CDs					139,859,453		36,213,632			103,645,821		286 %
		Total Time Deposits					161,480,688		42,975,369			118,505,319		276 %
		Total Deposits					460,448,455		392,862,274			67,586,181		17 %
		Other Borrowings					9,000,000		10,000,000			(1,000,000)		-10 %
		Federal Funds Purchased					-		-			-		0 %
		ACL on Unfunded Commitments					678,444		-			678,444		100 %
		Other Liabilities					3,422,078		3,807,240			(385,162)		-10 %
		Total Liabilities					473,548,977		406,669,514			66,879,463		16 %
		Shareholders' Equity
		Common Stock					66,692,747		65,824,785			867,962		1 %
		Accumulated Deficit					(11,779,488)		(7,334,490)			(4,444,998)		-61 %
		Accumulated Other Comprehensive Loss					(17,310,555)		(20,050,992)			2,740,437		14 %
		Total Shareholders' Equity					37,602,704		38,439,303			(836,599)		-2 %
		Total Liabilities & Shareholders' Equity					$             511,151,681		$             445,108,817			$               66,042,864		15 %
		Shares Outstanding					6,695,121		6,602,984			92,137		1 %
		Tangible Book Value per Share					$                         5.62		$                         5.82			$                       (0.20)		-4 %

 

	Triad Business Bank
	Income Statement (Unaudited)							For the Year Ended		For the Year Ended
								December 31, 2023		December 31, 2022			$ Change		% Change
		Interest Income
		Interest & Fees on PPP Loans						$                                  6,854		$                              289,109			$                            (282,255)		-98 %
		Interest & Fees on Core Loans						17,086,578		9,651,275			7,435,303		77 %
		Interest & Dividend Income on Securities						4,444,100		3,570,880			873,220		24 %
		Interest Income on Balances Due from Banks						1,427,873		584,639			843,234		144 %
		Other Interest Income						302,034		84,859			217,175		256 %
		Total Interest Income						23,267,439		14,180,762			9,086,677		64 %
		Interest Expense
		Interest on NOW Deposits						729,355		250,955			478,400		191 %
		Interest on Savings & MMA Deposits						5,664,205		1,798,129			3,866,076		215 %
		Interest on Time Deposits						5,258,833		495,824			4,763,009		961 %
		Interest on Federal Funds Purchased						169		2,104			(1,935)		-92 %
		Interest on Borrowings						752,474		99,704			652,770		655 %
		Other Interest Expense						252,775		70,657			182,118		258 %
		Total Interest Expense						12,657,811		2,717,373			9,940,438		366 %
		Net Interest Income						10,609,628		11,463,389			(853,761)		-7 %
			Provision for Credit Losses					2,915,181		1,317,726			1,597,455		121 %
		Net Interest Income After Provision for CL						7,694,447		10,145,663			(2,451,216)		-24 %
		Total Noninterest Income						837,921		743,381			94,540		13 %
		Total Gain (Loss) on Securities						35,000		(156,156)			191,156		122 %
		Noninterest Expense
		Salaries & Benefits						8,604,883		7,699,839			905,044		12 %
		Premises & Equipment						533,857		504,901			28,956		6 %
		Total Other Noninterest Expense						3,748,468		2,824,577			923,891		33 %
		Total Noninterest Expense						12,887,208		11,029,317			1,857,891		17 %
			Income (Loss) Before Income Tax					(4,319,840)		(296,429)			(4,023,411)		-1357 %
			Income Tax					-		67,244			(67,244)		-100 %
			Net Income (Loss)					$                    (4,319,840)		$                       (363,673)			$                    (3,956,167)		-1088 %
		Net Income (Loss) per Share
			Basic					$                            (0.65)		$                            (0.06)			$                            (0.59)		-1079 %
			Diluted					$                            (0.65)		$                            (0.06)			$                            (0.59)		-1079 %
		Weighted Average Shares Outstanding
			Basic					6,653,922		6,602,984			50,938		1 %
			Diluted					6,653,922		6,602,984			50,938		1 %
		Pre-provision, Pre-tax Income (Loss)						$                    (1,404,659)		$                     1,021,297			$                    (2,425,956)		-238 %

 

	Triad Business Bank
	Key Ratios & Other Information (Unaudited)
								Year Ended						Year Ended
								12/31/2023						12/31/2022
								Interest						Interest
								Income/		Yield/				Income/		Yield/
						Balance		Expense		Rate		Balance		Expense		Rate
	Yield on Average Loans
	Average PPP Loans					$           644,065		$                6,854		1.064 %		$           4,052,156		$             289,109		7.135 %
	Average Core Loans					309,500,851		17,086,578		5.521 %		234,635,751		9,651,275		4.113 %
	Yield on Average Investment Securities					$   137,782,738		$        4,444,100		3.225 %		$      141,308,899		$          3,570,880		2.527 %
	Yield on Average Interest-earning Assets					$   477,415,732		$      23,267,439		4.874 %		$      412,658,858		$       14,180,762		3.436 %
	Cost of Average Interest-bearing Liabilities					$   340,428,915		$      12,657,811		3.718 %		$      247,277,337		$          2,717,373		1.099 %
	Net Interest Margin
	Interest Income							$      23,267,439						$       14,180,762
	Interest Expense							12,657,811						2,717,373
	Average Earnings Assets					$   477,415,732						$      412,658,858
	Net Interest Income & Net Interest Margin							$      10,609,628		2.222 %				$       11,463,389		2.778 %
	Loan to Asset Ratio
	Loan Balance					$   334,142,073						$      273,048,889
	Total Assets					511,151,681				65.370 %		445,108,817				61.344 %
	Leverage Ratio
	Tier 1 Capital					$     54,913,259						$         58,490,295
	Average Total Assets					521,794,894				10.524 %		470,154,080				12.441 %
	Unfunded Commitments to Extend Credit					$   135,959,421						$      102,576,003
	Standby Letters of Credit					186,252						277,240

 

	Triad Business Bank
	Income Statement (Unaudited)							For Three Months Ended		For Three Months Ended
								December 31, 2023		December 31, 2022			$ Change		% Change
		Interest Income
		Interest & Fees on PPP Loans						$                                  1,308		$                                  2,267			$                                   (959)		-42 %
		Interest & Fees on Core Loans						4,852,208		3,221,915			1,630,293		51 %
		Interest & Dividend Income on Securities						1,170,658		966,457			204,201		21 %
		Interest Income on Balances Due from Banks						322,412		356,933			(34,521)		-10 %
		Other Interest Income						83,452		46,138			37,314		81 %
		Total Interest Income						6,430,038		4,593,710			1,836,328		40 %
		Interest Expense
		Interest on NOW Deposits						233,811		83,153			150,658		181 %
		Interest on Savings & MMA Deposits						1,484,151		939,932			544,219		58 %
		Interest on Time Deposits						1,829,874		235,806			1,594,068		676 %
		Interest on Federal Funds Purchased						-		-			-		0 %
		Interest on Borrowings						223,442		41,303			182,139		441 %
		Other Interest Expense						67,927		40,651			27,276		67 %
		Total Interest Expense						3,839,205		1,340,845			2,498,360		186 %
		Net Interest Income						2,590,833		3,252,865			(662,032)		-20 %
			Provision for Credit Losses					322,715		257,515			65,200		25 %
		Net Interest Income After Provision for CL						2,268,118		2,995,350			(727,232)		-24 %
		Total Noninterest Income						294,628		162,873			131,755		81 %
		Total Gain (Loss) on Securities						6,300		(94,500)			100,800		107 %
		Noninterest Expense
		Salaries & Benefits						2,276,590		2,086,924			189,666		9 %
		Premises & Equipment						137,398		111,398			26,000		23 %
		Total Other Noninterest Expense						955,551		758,263			197,288		26 %
		Total Noninterest Expense						3,369,539		2,956,585			412,954		14 %
			Income (Loss) Before Income Tax					(800,493)		107,138			(907,631)		-847 %
			Income Tax					-		28,338			(28,338)		-100 %
			Net Income (Loss)					$                       (800,493)		$                          78,800			$                       (879,293)		-1116 %
		Net Income (Loss) per Share
			Basic					$                            (0.12)		$                              0.01			$                            (0.13)		-1102 %
			Diluted					$                            (0.12)		$                              0.01			$                            (0.13)		-1138 %
		Weighted Average Shares Outstanding
			Basic					6,694,694		6,602,984			91,710		1 %
			Diluted					6,694,694		6,842,684			(147,990)		-2 %
		Pre-provision, Pre-tax Income (Loss)						$                       (477,778)		$                        364,653			$                       (842,431)		-231 %

 

	Triad Business Bank
	Key Ratios & Other Information (Unaudited)
								Quarter Ended						Quarter Ended
								12/31/2023						12/31/2022
								Interest						Interest
								Income/		Yield/				Income/		Yield/
						Balance		Expense		Rate		Balance		Expense		Rate
	Yield on Average Loans
	Average PPP Loans					$           511,640		$                1,308		1.014 %		$              877,145		$                 2,267		1.025 %
	Average Core Loans					332,616,444		4,852,208		5.788 %		266,727,991		3,221,915		4.792 %
	Yield on Average Investment Securities					$   134,652,018		$        1,170,658		3.449 %		$      135,664,230		$             966,457		2.826 %
	Yield on Average Interest-earning Assets					$   492,038,846		$        6,430,038		5.185 %		$      442,777,435		$          4,593,710		4.116 %
	Cost of Average Interest-bearing Liabilities					$   363,885,127		$        3,839,205		4.186 %		$      259,707,088		$          1,340,845		2.048 %
	Net Interest Margin
	Interest Income							$        6,430,038						$          4,593,710
	Interest Expense							3,839,205						1,340,845
	Average Earnings Assets					$   492,038,846						$      442,777,435
	Net Interest Income & Net Interest Margin							$        2,590,833		2.089 %				$          3,252,865		2.915 %
	Loan to Asset Ratio
	Loan Balance					$   334,142,073						$      273,048,889
	Total Assets					511,151,681				65.370 %		445,108,817				61.344 %
	Leverage Ratio
	Tier 1 Capital					$     54,913,259						$         58,490,295
	Average Total Assets					521,794,894				10.524 %		470,154,080				12.441 %
	Unfunded Commitments to Extend Credit					$   135,959,421						$      102,576,003
	Standby Letters of Credit					186,252						277,240

 

	Triad Business Bank
	Balance Sheet (Unaudited)						December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
		Assets
		Cash & Due from Banks					$               33,610,971		$               28,774,582		$               52,211,693		$               41,939,297		$               30,177,676
		Securities					137,537,443		135,448,032		139,889,880		136,775,960		137,158,352
		Federal Funds Sold					-		-		-		-		-
		PPP Loans					482,100		563,558		644,855		767,312		848,172
		Core Loans					333,659,973		328,391,061		315,566,125		300,203,024		272,200,717
		Allowance for Credit Losses ("ACL")					(3,729,925)		(3,738,836)		(3,509,593)		(3,354,606)		(3,418,841)
		Loans, Net					330,412,148		325,215,783		312,701,387		297,615,730		269,630,048
		Other Assets					9,591,119		8,845,602		8,296,216		8,598,657		8,142,741
		Total Assets					$             511,151,681		$             498,283,999		$             513,099,176		$             484,929,644		$             445,108,817
		Liabilities
		Demand Deposits					$               99,389,815		$             101,103,791		$             104,796,822		$             106,109,354		$             176,820,321
		ICS Reciprocal - Checking					14,204,733		11,241,300		29,689,563		26,977,867		-
		Commercial Operating Accounts					113,594,548		112,345,091		134,486,385		133,087,221		176,820,321
		Interest-bearing NOW					22,518,830		20,914,221		19,885,942		5,468,207		13,209,174
		Core MMA & Savings					85,891,021		95,161,537		95,250,866		169,575,165		159,857,410
		ICS Reciprocal - MMA					76,963,368		73,887,703		78,325,692		20,430,098		-
		Total MMA & Savings					162,854,389		169,049,240		173,576,558		190,005,263		159,857,410
		Core Time Deposits					11,019,913		10,598,293		9,541,015		7,421,530		3,748,773
		CDARS - Reciprocal					10,601,322		9,555,900		10,343,801		5,746,927		3,012,964
		Brokered CDs					139,859,453		129,584,145		120,201,839		87,165,000		36,213,632
		Total Time Deposits					161,480,688		149,738,338		140,086,655		100,333,457		42,975,369
		Total Deposits					460,448,455		452,046,890		468,035,540		428,894,148		392,862,274
		Other Borrowings					9,000,000		9,000,000		5,000,000		15,000,000		10,000,000
		Federal Funds Purchased					-		-		-		-		-
		ACL on Unfunded Commitments					678,444		647,068		620,519		700,980		-
		Other Liabilities					3,422,078		2,750,602		2,803,124		2,435,003		3,807,240
		Total Liabilities					473,548,977		464,444,560		476,459,183		447,030,131		406,669,514
		Shareholders' Equity
		Common Stock					66,692,747		66,448,450		66,206,484		66,037,467		65,824,785
		Accumulated Deficit					(11,779,488)		(10,978,995)		(10,320,428)		(9,884,175)		(7,334,490)
		Accumulated Other Comprehensive Loss					(17,310,555)		(21,630,016)		(19,246,063)		(18,253,779)		(20,050,992)
		Total Shareholders' Equity					37,602,704		33,839,439		36,639,993		37,899,513		38,439,303
		Total Liabilities & Shareholders' Equity					$             511,151,681		$             498,283,999		$             513,099,176		$             484,929,644		$             445,108,817
		Shares Outstanding					6,695,121		6,693,965		6,693,965		6,602,984		6,602,984
		Tangible Book Value per Share					$                         5.62		$                         5.06		$                         5.47		$                         5.74		$                         5.82

 

	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, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
		Interest Income
		Interest & Fees on PPP Loans						$                                  1,308		$                                  1,514		$                                  2,016		$                                  2,017		$                                      2,267
		Interest & Fees on Core Loans						4,852,208		4,546,056		4,154,484		3,533,828		3,221,915
		Interest & Dividend Income on Securities						1,170,658		1,171,364		1,090,464		1,011,613		966,457
		Interest Income on Balances Due from Banks						322,412		405,520		391,371		308,571		356,933
		Other Interest Income						83,452		82,167		76,387		60,029		46,138
		Total Interest Income						6,430,038		6,206,621		5,714,722		4,916,058		4,593,710
		Interest Expense
		Interest on NOW Deposits						233,811		217,879		184,372		93,294		83,153
		Interest on Savings & MMA Deposits						1,484,151		1,508,522		1,329,486		1,342,045		939,932
		Interest on Time Deposits						1,829,874		1,608,518		1,228,575		591,865		235,806
		Interest on Federal Funds Purchased						-		-		170		-		-
		Interest on Borrowings						223,442		161,457		187,215		180,360		41,303
		Other Interest Expense						67,927		67,359		62,970		54,519		40,651
		Total Interest Expense						3,839,205		3,563,735		2,992,788		2,262,083		1,340,845
		Net Interest Income						2,590,833		2,642,886		2,721,934		2,653,975		3,252,865
			Provision for Credit Losses					322,715		255,792		74,526		2,262,148		257,515
		Net Interest Income After Provision for CL						2,268,118		2,387,094		2,647,408		391,827		2,995,350
		Total Noninterest Income						294,628		185,914		163,673		193,706		162,873
		Total Gain (Loss) on Securities						6,300		(2,800)		4,200		27,300		(94,500)
		Noninterest Expense
		Salaries & Benefits						2,276,590		2,155,982		2,110,577		2,061,734		2,086,924
		Premises & Equipment						137,398		125,426		135,379		135,654		111,398
		Total Other Noninterest Expense						955,551		947,367		1,005,578		839,972		758,263
		Total Noninterest Expense						3,369,539		3,228,775		3,251,534		3,037,360		2,956,585
			Income (Loss) Before Income Tax					(800,493)		(658,567)		(436,253)		(2,424,527)		107,138
			Income Tax					-		-		-		-		28,338
			Net Income (Loss)					$                       (800,493)		$                       (658,567)		$                       (436,253)		$                    (2,424,527)		$                             78,800
		Net Income (Loss) per Share
			Basic					$                            (0.12)		$                            (0.10)		$                            (0.07)		$                            (0.37)		$                                 0.01
			Diluted					$                            (0.12)		$                            (0.10)		$                            (0.07)		$                            (0.37)		$                                 0.01
		Weighted Average Shares Outstanding
			Basic					6,694,694		6,693,965		6,622,596		6,602,984		6,602,984
			Diluted					6,694,694		6,693,965		6,622,596		6,602,984		6,842,684
		Pre-provision, Pre-tax Income (Loss)						$                       (477,778)		$                       (402,775)		$                       (361,727)		$                       (162,379)		$                           364,653

 

	Triad Business Bank
	Capital and Capital Ratios (Unaudited)
						Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
						12/31/2023				9/30/2023				6/30/2023				3/31/2023				12/31/2022
						Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	Actual
	(dollars in thousands)
	Total Capital (to risk-weighted assets)					$  59,322		12.70 %		$  59,855		12.89 %		$  60,017		13.41 %		$  60,210		14.03 %		$  61,909		15.45 %
	Tier 1 Capital (to risk-weighted assets)					$  54,913		11.76 %		$  55,469		11.94 %		$  55,886		12.48 %		$  56,154		13.09 %		$  58,490		14.60 %
	Tier 1 Capital (to average assets)					$  54,913		10.52 %		$  55,469		10.76 %		$  55,886		11.11 %		$  56,154		11.73 %		$  58,490		12.44 %
	Minimum To Be Well-Capitalized Under
	Prompt Corrective Action Provisions
	(dollars in thousands)
	Total Capital (to risk-weighted assets)					$  47,000		10.00 %		$  46,000		10.00 %		$  45,000		10.00 %		$  43,000		10.00 %		$  40,000		10.00 %
	Tier 1 Capital (to risk-weighted assets)					$  37,000		8.00 %		$  37,000		8.00 %		$  36,000		8.00 %		$  34,000		8.00 %		$  32,000		8.00 %
	Tier 1 Capital (to average assets)					$  26,000		5.00 %		$  26,000		5.00 %		$  25,000		5.00 %		$  24,000		5.00 %		$  24,000		5.00 %

 

	Triad Business Bank
	Non-GAAP Measures (Unaudited)
	Tangible Book Value
									Actual    12/31/2023		Non-GAAP 12/31/2023
	Total Shareholders' Equity								$           37,602,704		$           37,602,704
	Eliminate Deferred Tax Asset Valuation Allowance								-		2,520,577
	Eliminate Accumulated Other Comprehensive Loss								-		17,310,555
	Adjusted Shareholders' Equity								$           37,602,704		$           57,433,836
	Shares Outstanding								6,695,121		6,695,121
	Tangible Book Value per Share								$                        5.62		$                        8.58
	Effect of Non-GAAP Measures on Tangible Book Value										$                        2.96
	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, 2023 had
	there been no valuation allowance at that date.
	Changes in the market value of available-for-sale securities are reflected in accumulated other comprehensive loss.  Since the securities value
	will return to face value at maturity, assuming the underlying securities are held to maturity and there is no credit loss, accumulated other
	comprehensive loss has been eliminated in this Non-GAAP measure.
	Pre-provision Income (Loss)
									Qtr Ended 12/31/2023		Qtr Ended 12/31/2022
	Income (Loss) Before Income Tax								$               (800,493)		$                 107,138
	Provision for Loan Losses								322,715		257,515
	Pre-provision Income (Loss) Before Income Tax (Non-GAAP)								$               (477,778)		$                 364,653
	The pre-provision income (loss) is a measure of operating performance exclusive of potential losses from lending.

 

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SOURCE Triad Business Bank

FAQ

What milestone did Triad Business Bank (TBBC) achieve recently?

Triad Business Bank achieved a $500 million total asset milestone.

How much did the Bank's customer deposit transactions increase by in 2023?

The Bank saw a 12% increase in customer deposit transactions in 2023.

What was the net loss reported by the Bank for 2023?

The Bank reported a net loss of $4.3 million for 2023.

What was the percentage increase in total interest income for the Bank in 2023?

Total interest income increased by 64% to $23.2 million in 2023.

Did the Bank's net interest margin increase or decrease in 2023?

The Bank's net interest margin decreased to 2.22% in 2023 from 2.78% in 2022.

How did the Bank's capital position fare in 2023?

Triad Business Bank's capital position remains strong, exceeding 'Well-Capitalized' requirements.