Triad Business Bank (OTC Pink - "TBBC"), May 2, 2024, Announces Unaudited First Quarter 2024 Results

Rhea-AI Summary

Triad Business Bank (TBBC) announced unaudited first quarter 2024 results, showing a net loss of $101,000, an improvement from the previous quarter. The Bank saw positive trends with increased capital levels, loan balances, and deposit relationships. Management outlined a plan to improve profitability by focusing on core deposits, making strategic loans, and reducing expenses. Despite challenges in 2023, the Bank is committed to enhancing customer service and financial stability.

Positive

• Improved capital levels and loan balances in the first quarter of 2024.

• Decrease in net loss by $700,000 compared to the previous quarter.

• Increased number of operating accounts and deposit relationships.

• Plan implemented to accelerate path to profitability, focusing on core deposits and loan strategies.

Negative

• Net loss of $101,000 for the first quarter of 2024.

• Challenges faced in 2023 due to rising interest rates and loan growth outpacing deposit growth.

• Reduction in shareholders' equity and increase in accumulated other comprehensive income loss.

• Expense reduction initiative with one-time expenses of $100,000 expected during the second quarter.

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

Overview

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

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

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

Income Statement Comparison 

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

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

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

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

Balance Sheet Comparison 

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

Shareholders' equity declined $640,000 during the first quarter of 2024 to $37.0 million primarily due to the $785,000 increase in the accumulated other comprehensive income ("AOCI") loss to $18.1 million.  The AOCI loss is expected to reverse as the bond portfolio shortens in life and is assumed to mature at par value.

Regulatory Capital

Total risk-based capital consists of tier 1 capital and tier 2 capital.  The Bank's tier 1 capital is largely a measure of shareholders' equity as calculated under GAAP but eliminates certain volatile elements such as AOCI loss.  Tier 2 capital is primarily the allowance for funded and unfunded credit losses.  Tier 1 and tier 2 capital ratios are measured against total assets and risk-weighted assets. 

The following is a summary presentation of the Bank's total regulatory capital to risk-weighted assets, tier 1 capital to risk-weighted assets and tier 1 capital to average assets in comparison with the regulatory guidelines at March 31, 2024:

Capital and Capital Ratios
					Quarter Ended
					3/31/2024
					Amount		Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)					$  59,133		12.22 %
Tier 1 Capital (to risk-weighted assets)					$  55,059		11.38 %
Tier 1 Capital (to average assets)					$  55,059		10.37 %
Minimum To Be Well-Capitalized Under
Prompt Corrective Action Provisions
(dollars in thousands)
Total Capital (to risk-weighted assets)					$  48,000		10.00 %
Tier 1 Capital (to risk-weighted assets)					$  39,000		8.00 %
Tier 1 Capital (to average assets)					$  27,000		5.00 %

Loans

The Bank's loans increased $25.1 million, or 7%, to $359.2 million at March 31, 2024 compared to $334.1 million at December 31, 2023 and increased $58.2 million, or 19%, from $301.0 million at March 31, 2023.  While not included in loans outstanding, the Bank also had unfunded loan commitments of $128.1 million, bringing total loans outstanding and unfunded commitments to $487.3 million at March 31, 2024.  For internal monitoring purposes, the Bank considers owner-occupied real estate loans to be part of commercial and industrial ("C&I") loans.  As of March 31, 2024, approximately 51% of the Bank's outstanding loan portfolio was composed of C&I loans:

Loan Diversification
		Quarter Ended		Percentage of
Loan Category		3/31/2024		Loan Portfolio
Other Construction & Land Development		$        48,228,671
Nonowner-occupied Commercial Real Estate		126,596,765
Total Commercial Real Estate		174,825,436		48 %
Owner-occupied Real Estate		91,842,898
C&I		90,293,646
Total C&I		182,136,544		51 %
Other Revolving Loans		2,237,514		1 %
Total		$      359,199,494

Credit Risk and Allowance for Credit Losses

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

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

Deferred Tax Asset and AOCI (Non-GAAP Measures)

The Bank's GAAP tangible book value per share was $5.52 at March 31, 2024.  On a non-GAAP basis, excluding the AOCI loss and the impairment on the Bank's deferred tax asset (two reductions in capital the Bank anticipates it will recover over time), adjusted tangible book value per share was $8.61 at March 31, 2024.

The organization and startup costs incurred during the Bank's organizational period and net operating losses from the beginning of operations created a deferred tax asset of $2.6 million.  This asset is currently fully impaired and will be carried at $0 until sufficient, verifiable evidence exists (generally, sustained profitability) to demonstrate that the deferred tax asset will more likely than not be realized.  At that time, the valuation allowance will be reversed.

The change in value of the Bank's investment securities that are available for sale is recorded in AOCI as a gain or loss, based on current circumstances, and constitutes an unrealized component of equity.  At March 31, 2024, the Bank had an aggregate AOCI loss of $18.1 million.  Assuming the underlying investment securities are held to maturity and there are no credit losses, the value of the securities will return to their face values at maturity.  Therefore, as a non-GAAP measure, the Bank eliminates its current AOCI loss to reflect an adjusted tangible book value.

Outlook

The fixed versus floating rate mix of the Bank's assets and liabilities has resulted in a substantial portion of the liabilities reflecting increases in market rates whereas its loans are repricing more slowly.  If current deposit and market rates remain stable, we expect the repricing of our loan portfolio over the next several quarters will gradually improve the Bank's net interest margin.

About Triad Business Bank

With three co-equal offices located in Winston-Salem, High Point and Greensboro, Triad Business Bank focuses on meeting the needs of small to midsize businesses and their owners by providing loans, treasury management and private banking, all with a high level of personal attention and best-in-class technology.  For more information, visit www.triadbusinessbank.com. 

Non-GAAP Financial Measures

This release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States ("GAAP").  The management of Triad Business Bank uses these non-GAAP financial measures in its analysis of the Bank's performance.  These measures typically adjust GAAP performance measures to exclude the effects of the provision for credit losses, income tax, deferred tax asset, and AOCI.  Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Bank.  These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Forward Looking Language

This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Triad Business Bank.  These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of Triad Business Bank and on the information available to management at the time that these disclosures were prepared.  These statements can be identified by the use of words like "expect," "anticipate," "estimate" and "believe," variations of these words and other similar expressions.  Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements.  Triad Business Bank undertakes no obligation to update any forward-looking statements. 

Triad Business Bank
Balance Sheet (Unaudited)						March 31, 2024		December 31, 2023			$ Change		% Change
	Assets
	Cash & Due from Banks					$              30,489,026		$              33,610,971			$              (3,121,945)		-9 %
	Securities					131,199,978		137,537,443			(6,337,465)		-5 %
	Federal Funds Sold					-		-			-		0 %
	Loans					359,199,494		334,142,073			25,057,421		7 %
	Allowance for Credit Losses ("ACL")					(3,681,954)		(3,729,925)			47,971		1 %
	Loans, Net					355,517,540		330,412,148			25,105,392		8 %
	Other Assets					9,943,701		9,591,119			352,582		4 %
	Total Assets					$            527,150,245		$            511,151,681			$              15,998,564		3 %
	Liabilities
	Demand Deposits					$            102,564,892		$              99,389,815			$               3,175,077		3 %
	ICS Reciprocal - Checking					11,390,196		14,204,733			(2,814,537)		-20 %
	Commercial Operating Accounts					113,955,088		113,594,548			360,540		0 %
	Interest-bearing NOW					21,532,867		22,518,830			(985,963)		-4 %
	Core MMA & Savings					102,969,388		85,891,021			17,078,367		20 %
	ICS Reciprocal - MMA					42,157,824		76,963,368			(34,805,544)		-45 %
	Total MMA & Savings					145,127,212		162,854,389			(17,727,177)		-11 %
	Core Time Deposits					21,153,172		11,019,913			10,133,259		92 %
	CDARS - Reciprocal					11,701,169		10,601,322			1,099,847		10 %
	Brokered CDs					164,119,991		139,859,453			24,260,538		17 %
	Total Time Deposits					196,974,332		161,480,688			35,493,644		22 %
	Total Deposits					477,589,499		460,448,455			17,141,044		4 %
	Other Borrowings					9,000,000		9,000,000			-		0 %
	Federal Funds Purchased					-		-			-		0 %
	ACL on Unfunded Commitments					392,328		678,444			(286,116)		-42 %
	Other Liabilities					3,205,767		3,422,078			(216,311)		-6 %
	Total Liabilities					490,187,594		473,548,977			16,638,617		4 %
	Shareholders' Equity
	Common Stock					66,938,869		66,692,747			246,122		0 %
	Accumulated Deficit					(11,880,398)		(11,779,488)			(100,910)		-1 %
	Accumulated Other Comprehensive Loss					(18,095,820)		(17,310,555)			(785,265)		-5 %
	Total Shareholders' Equity					36,962,651		37,602,704			(640,053)		-2 %
	Total Liabilities & Shareholders' Equity					$            527,150,245		$            511,151,681			$              15,998,564		3 %
	Shares Outstanding					6,695,121		6,695,121			0		0 %
	Tangible Book Value per Share					$                       5.52		$                       5.62			$                      (0.09)		-2 %

 

Triad Business Bank
Income Statement (Unaudited)							For Three Months Ended		For Three Months Ended
							March 31, 2024		December 31, 2023			$ Change		% Change
	Interest Income
	Interest & Fees on Loans						$                            5,253,323		$                            4,853,516			$                               399,807		8 %
	Interest & Dividend Income on Securities						1,090,009		1,170,658			(80,649)		-7 %
	Interest Income on Balances Due from Banks						283,289		322,412			(39,123)		-12 %
	Other Interest Income						87,369		83,452			3,917		5 %
	Total Interest Income						6,713,990		6,430,038			283,952		4 %
	Interest Expense
	Interest on Checking Deposits						218,511		233,811			(15,300)		-7 %
	Interest on Savings & MMA Deposits						1,430,372		1,484,151			(53,779)		-4 %
	Interest on Time Deposits						2,161,020		1,829,874			331,146		18 %
	Interest on Federal Funds Purchased						-		-			-		0 %
	Interest on Borrowings						200,034		223,442			(23,408)		-10 %
	Other Interest Expense						66,637		67,927			(1,290)		-2 %
	Total Interest Expense						4,076,574		3,839,205			237,369		6 %
	Net Interest Income						2,637,416		2,590,833			46,583		2 %
		Provision for Credit Losses					(334,087)		322,715			(656,802)		-204 %
	Net Interest Income After Provision for CL						2,971,503		2,268,118			703,385		31 %
	Total Noninterest Income						283,910		294,628			(10,718)		-4 %
	Total Gain (Loss) on Securities						20,309		6,300			14,009		222 %
	Noninterest Expense
	Salaries & Benefits						2,210,023		2,276,590			(66,567)		-3 %
	Premises & Equipment						136,442		137,398			(956)		-1 %
	Total Other Noninterest Expense						1,030,167		955,551			74,616		8 %
	Total Noninterest Expense						3,376,632		3,369,539			7,093		0 %
		Income (Loss) Before Income Tax					(100,910)		(800,493)			699,583		87 %
		Income Tax					-		-			-		0 %
		Net Income (Loss)					$                      (100,910)		$                      (800,493)			$                       699,583		87 %
	Net Income (Loss) per Share
		Basic					$                           (0.02)		$                           (0.12)			$                            0.10		87 %
		Diluted					$                           (0.02)		$                           (0.12)			$                            0.10		87 %
	Weighted Average Shares Outstanding
		Basic					6,695,121		6,694,694			427		0 %
		Diluted					6,695,121		6,694,694			427		0 %
	Pre-provision, Pre-tax Loss						$                      (434,997)		$                      (477,778)			$                         42,781		9 %

 

Triad Business Bank
Key Ratios & Other Information (Unaudited)
							Quarter Ended						Quarter Ended
							3/31/2024						12/31/2023
							Interest						Interest
							Income/		Yield/				Income/		Yield/
					Balance		Expense		Rate		Balance		Expense		Rate
Yield on Average Loans					$   348,932,123		$        5,253,323		6.055 %		333,128,084		4,853,516		5.780 %
Yield on Average Investment Securities					$   133,568,374		$        1,090,009		3.282 %		$      134,652,018		$          1,170,658		3.449 %
Yield on Average Interest-earning Assets					$   504,440,542		$        6,713,990		5.353 %		$      492,038,846		$          6,430,038		5.185 %
Cost of Average Interest-bearing Liabilities					$   377,862,470		$        4,076,574		4.339 %		$      363,885,127		$          3,839,205		4.186 %
Net Interest Margin
Interest Income							$        6,713,990						$          6,430,038
Interest Expense							4,076,574						3,839,205
Average Earnings Assets					$   504,440,542						$      492,038,846
Net Interest Income & Net Interest Margin							$        2,637,416		2.103 %				$          2,590,833		2.089 %
Loan to Asset Ratio
Loan Balance					$   359,199,494						$      334,142,073
Total Assets					527,150,245				68.140 %		511,151,681				65.370 %
Leverage Ratio
Tier 1 Capital					$     55,058,471						$         54,913,259
Average Total Assets					530,957,281				10.370 %		521,794,894				10.524 %
Unfunded Commitments to Extend Credit					$   128,089,831						$      135,959,421
Standby Letters of Credit					186,252						186,252

 

Triad Business Bank
Balance Sheet (Unaudited)						March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
	Assets
	Cash & Due from Banks					$              30,489,026		$              33,610,971		$              28,774,582		$              52,211,693		$              41,939,297
	Securities					131,199,978		137,537,443		135,448,032		139,889,880		136,775,960
	Federal Funds Sold					-		-		-		-		-
	Loans					359,199,494		334,142,073		328,954,619		316,210,980		300,970,336
	Allowance for Credit Losses ("ACL")					(3,681,954)		(3,729,925)		(3,738,836)		(3,509,593)		(3,354,606)
	Loans, Net					355,517,540		330,412,148		325,215,783		312,701,387		297,615,730
	Other Assets					9,943,701		9,591,119		8,845,602		8,296,216		8,598,657
	Total Assets					$            527,150,245		$            511,151,681		$            498,283,999		$            513,099,176		$            484,929,644
	Liabilities
	Demand Deposits					$            102,564,892		$              99,389,815		$            101,103,791		$            104,796,822		$            106,109,354
	ICS Reciprocal - Checking					11,390,196		14,204,733		11,241,300		29,689,563		26,977,867
	Commercial Operating Accounts					113,955,088		113,594,548		112,345,091		134,486,385		133,087,221
	Interest-bearing NOW					21,532,867		22,518,830		20,914,221		19,885,942		5,468,207
	Core MMA & Savings					102,969,388		85,891,021		95,161,537		95,250,866		169,575,165
	ICS Reciprocal - MMA					42,157,824		76,963,368		73,887,703		78,325,692		20,430,098
	Total MMA & Savings					145,127,212		162,854,389		169,049,240		173,576,558		190,005,263
	Core Time Deposits					21,153,172		11,019,913		10,598,293		9,541,015		7,421,530
	CDARS - Reciprocal					11,701,169		10,601,322		9,555,900		10,343,801		5,746,927
	Brokered CDs					164,119,991		139,859,453		129,584,145		120,201,839		87,165,000
	Total Time Deposits					196,974,332		161,480,688		149,738,338		140,086,655		100,333,457
	Total Deposits					477,589,499		460,448,455		452,046,890		468,035,540		428,894,148
	Other Borrowings					9,000,000		9,000,000		9,000,000		5,000,000		15,000,000
	Federal Funds Purchased					-		-		-		-		-
	ACL on Unfunded Commitments					392,328		678,444		647,068		620,519		700,980
	Other Liabilities					3,205,767		3,422,078		2,750,602		2,803,124		2,435,003
	Total Liabilities					490,187,594		473,548,977		464,444,560		476,459,183		447,030,131
	Shareholders' Equity
	Common Stock					66,938,869		66,692,747		66,448,450		66,206,484		66,037,467
	Accumulated Deficit					(11,880,398)		(11,779,488)		(10,978,995)		(10,320,428)		(9,884,175)
	Accumulated Other Comprehensive Loss					(18,095,820)		(17,310,555)		(21,630,016)		(19,246,063)		(18,253,779)
	Total Shareholders' Equity					36,962,651		37,602,704		33,839,439		36,639,993		37,899,513
	Total Liabilities & Shareholders' Equity					$            527,150,245		$            511,151,681		$            498,283,999		$            513,099,176		$            484,929,644
	Shares Outstanding					6,695,121		6,695,121		6,693,965		6,693,965		6,602,984
	Tangible Book Value per Share					$                       5.52		$                       5.62		$                       5.06		$                       5.47		$                       5.74

 

Triad Business Bank
Income Statement (Unaudited)							For Three Months Ended		For Three Months Ended		For Three Months Ended		For Three Months Ended		For Three Months Ended
							March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
	Interest Income
	Interest & Fees on Loans						$                            5,253,323		$                            4,853,516		$                            4,547,570		$                            4,156,500		$                                3,535,845
	Interest & Dividend Income on Securities						1,090,009		1,170,658		1,171,364		1,090,464		1,011,613
	Interest Income on Balances Due from Banks						283,289		322,412		405,520		391,371		308,571
	Other Interest Income						87,369		83,452		82,167		76,387		60,029
	Total Interest Income						6,713,990		6,430,038		6,206,621		5,714,722		4,916,058
	Interest Expense
	Interest on Checking Deposits						218,511		233,811		217,879		184,372		93,294
	Interest on Savings & MMA Deposits						1,430,372		1,484,151		1,508,522		1,329,486		1,342,045
	Interest on Time Deposits						2,161,020		1,829,874		1,608,518		1,228,575		591,865
	Interest on Federal Funds Purchased						-		-		-		170		-
	Interest on Borrowings						200,034		223,442		161,457		187,215		180,360
	Other Interest Expense						66,637		67,927		67,359		62,970		54,519
	Total Interest Expense						4,076,574		3,839,205		3,563,735		2,992,788		2,262,083
	Net Interest Income						2,637,416		2,590,833		2,642,886		2,721,934		2,653,975
		Provision for Credit Losses					(334,087)		322,715		255,792		74,526		2,262,148
	Net Interest Income After Provision for CL						2,971,503		2,268,118		2,387,094		2,647,408		391,827
	Total Noninterest Income						283,910		294,628		185,914		163,673		193,706
	Total Gain (Loss) on Securities						20,309		6,300		(2,800)		4,200		27,300
	Noninterest Expense
	Salaries & Benefits						2,210,023		2,276,590		2,155,982		2,110,577		2,061,734
	Premises & Equipment						136,442		137,398		125,426		135,379		135,654
	Total Other Noninterest Expense						1,030,167		955,551		947,367		1,005,578		839,972
	Total Noninterest Expense						3,376,632		3,369,539		3,228,775		3,251,534		3,037,360
		Loss Before Income Tax					(100,910)		(800,493)		(658,567)		(436,253)		(2,424,527)
		Income Tax					-		-		-		-		-
		Net Loss					$                      (100,910)		$                      (800,493)		$                      (658,567)		$                      (436,253)		$                      (2,424,527)
	Net Loss per Share
		Basic					$                           (0.02)		$                           (0.12)		$                           (0.10)		$                           (0.07)		$                              (0.37)
		Diluted					$                           (0.02)		$                           (0.12)		$                           (0.10)		$                           (0.07)		$                              (0.37)
	Weighted Average Shares Outstanding
		Basic					6,695,121		6,694,694		6,693,965		6,622,596		6,602,984
		Diluted					6,695,121		6,694,694		6,693,965		6,622,596		6,602,984
	Pre-provision, Pre-tax Loss						$                      (434,997)		$                      (477,778)		$                      (402,775)		$                      (361,727)		$                         (162,379)

 

Triad Business Bank
Capital and Capital Ratios (Unaudited)
					Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
					3/31/2024				12/31/2023				9/30/2023				6/30/2023				3/31/2023
					Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)					$ 59,133		12.22 %		$ 59,322		12.70 %		$ 59,855		12.89 %		$ 60,017		13.41 %		$ 60,210		14.03 %
Tier 1 Capital (to risk-weighted assets)					$ 55,059		11.38 %		$ 54,913		11.76 %		$ 55,469		11.94 %		$ 55,886		12.48 %		$ 56,154		13.09 %
Tier 1 Capital (to average assets)					$ 55,059		10.37 %		$ 54,913		10.52 %		$ 55,469		10.76 %		$ 55,886		11.11 %		$ 56,154		11.73 %
Minimum To Be Well-Capitalized Under
Prompt Corrective Action Provisions
(dollars in thousands)
Total Capital (to risk-weighted assets)					$ 48,000		10.00 %		$ 47,000		10.00 %		$ 46,000		10.00 %		$ 45,000		10.00 %		$ 43,000		10.00 %
Tier 1 Capital (to risk-weighted assets)					$ 39,000		8.00 %		$ 37,000		8.00 %		$ 37,000		8.00 %		$ 36,000		8.00 %		$ 34,000		8.00 %
Tier 1 Capital (to average assets)					$ 27,000		5.00 %		$ 26,000		5.00 %		$ 26,000		5.00 %		$ 25,000		5.00 %		$ 24,000		5.00 %

 

Triad Business Bank
Non-GAAP Measures (Unaudited)
Tangible Book Value
								Actual 3/31/2024		Non-GAAP 3/31/2024
Total Shareholders' Equity								$       36,962,651		$       36,962,651
Eliminate Deferred Tax Asset Valuation Allowance								-		2,560,959
Eliminate Accumulated Other Comprehensive Loss								-		18,095,820
Adjusted Shareholders' Equity								$       36,962,651		$       57,619,430
Shares Outstanding								6,695,121		6,695,121
Tangible Book Value per Share								$                  5.52		$                  8.61
Effect of Non-GAAP Measures on Tangible Book Value										$                  3.09
During the start-up phase of the Bank, a valuation allowance was created which fully impairs the deferred tax asset.  When sufficient, verifiable
evidence exists (generally, sustained profitability) demonstrating that the deferred tax asset will more likely than not be realized, the valuation
allowance will be eliminated.  This Non-GAAP measure is shown to disclose the effect on tangible book value per share at March 31, 2024 had
there been no valuation allowance at that date.
Changes in the market value of available-for-sale securities are reflected in accumulated other comprehensive loss.  Since the securities value
will return to face value at maturity, assuming the underlying securities are held to maturity and there is no credit loss, accumulated other
comprehensive loss has been eliminated in this Non-GAAP measure.
Pre-provision Loss
								Qtr Ended 3/31/2024		Qtr Ended 12/31/2023
Loss Before Income Tax								$           (100,910)		$           (800,493)
Provision for Credit Losses								(334,087)		322,715
Pre-provision Loss Before Income Tax (Non-GAAP)								$           (434,997)		$           (477,778)
The pre-provision loss is a measure of operating performance exclusive of potential losses from lending.

 

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SOURCE Triad Business Bank

FAQ

What were Triad Business Bank's total assets at the end of March 31, 2024?

Triad Business Bank's total assets were $527.2 million at the end of March 31, 2024.

What was the Bank's net loss for the first quarter of 2024?

The Bank reported a net loss of $101,000 for the first quarter of 2024.

How did the Bank's net interest income change in the first quarter of 2024?

The Bank's net interest income increased by $47,000 to $2.64 million for the first quarter of 2024 compared to the previous quarter.

What is the Bank's plan to improve profitability?

The Bank plans to focus on core deposits, strategic loans, and expense reduction to enhance profitability.

Did the Bank have any reportable past due loans or nonperforming assets at March 31, 2024?

No, the Bank had no reportable past due loans or nonperforming assets at March 31, 2024.