Triad Business Bank (OTC Pink - "TBBC"), February 25, 2025, Announces Unaudited Results for 2024, Including Fourth Quarter Results

Rhea-AI Summary

Triad Business Bank (TBBC) reported a net loss of $1.4 million in Q4 2024, primarily due to a $1.7 million provision for credit losses, including a $1.1 million reserve for a corporate bond. Despite the loss, the bank showed improvement in core operating income, reaching $299,000 in Q4 2024 compared to a loss of $478,000 in Q4 2023.

Key financial metrics include:

• Net interest income increased $376,000 to $3.0 million
• Net interest margin improved to 2.27% from 2.09%
• Total assets grew to $525.2 million
• Loans increased by $39.5 million to $373.7 million
• Total regulatory capital remained strong at $63.1 million (12.78% of risk-weighted assets)

The bank successfully reduced operating expenses, with noninterest expense decreasing $368,000 (11%) year-over-year. Employee count decreased from 62 to 56, and the bank completed a $6.0 million common stock offering in June 2024.

Positive

• Core operating income improved by $777,000 YoY
• Net interest income increased $376,000 to $3.0 million
• Net interest margin improved to 2.27% from 2.09%
• Loans grew $39.5 million (12%) to $373.7 million
• Operating expenses reduced by $368,000 (11%)
• No nonperforming loans after Q4 cleanup
• Successful $6.0 million stock offering completed

Negative

• Q4 2024 net loss of $1.4 million
• $1.7 million provision for credit losses required
• $1.1 million reserve needed for downgraded corporate bond
• $998,000 loan charge-off in Q4
• Annual net loss of $2.8 million for 2024
• Deposits decreased by $5.0 million
• $16.3 million AOCI loss

GREENSBORO, N.C., Feb. 25, 2025 /PRNewswire/ --

Overview

For the fourth quarter of 2024, Triad Business Bank (the "Bank") had provision for credit loss expense of $1.7 million which included the establishment of a $1.1 million reserve for a corporate bond.  Following the provision, net loss for the quarter totaled $1.4 million.  Ramsey Hamadi, Chief Executive Officer, commented, "The Bank holds a corporate bond that recently lost its investment grade, and its current value indicates there may be a credit issue.  Therefore, until there is better clarity, the Bank established the $1.1 million reserve."

Hamadi continued, "Total regulatory capital continued to be strong at year end, totaling $63.1 million or 12.78% of risk weighted assets.  The Bank reported a $777,000 improvement in core operating income (net income before provision for credit losses and tax expense, a non-GAAP measurement) over the fourth quarter of 2023.  The Bank had core operating income of $299,000 in the fourth quarter of 2024 compared to a core operating loss of $478,000 in the fourth quarter of 2023.  The Bank continued several positive trends by executing on key initiatives, including reducing operating expenses, narrowing its sales focus, solidifying its unaffiliated core deposits base, and expanding its margins.  Noninterest expense declined $368,000 for the quarter ended December 31, 2024 as compared to the quarter ended December 31, 2023 due primarily to lower employee compensation expense and the pausing of director compensation.  Net interest income increased $376,000 on a wider net interest margin and a growing balance sheet."

Hamadi continued, "In the third quarter, the Bank reported its first nonaccruing commercial loan relationship of $1.5 million.  In the fourth quarter, after liquidating some and repossessing the remainder of the industrial equipment collateral, the Bank charged off $998,000.  These activities contributed to the $1.7 million provision for credit losses in the fourth quarter.  Following this charged off relationship, the Bank has no nonperforming loans."

Fourth Quarter Income Statement Comparison

The Bank's net loss totaled $1.4 million for the quarter ended December 31, 2024 compared to a net loss of $800,000 for the same quarter of 2023.  Core operating income, a non-GAAP measure, was $299,000 for the quarter compared to a core operating loss, a non-GAAP measure, of $478,000 for the fourth quarter of 2023.

Net interest income increased $376,000 to $3.0 million for the fourth quarter from $2.6 million for the fourth quarter of 2023.  The Bank's net interest margin increased 18 basis points to 2.27% from 2.09% for the prior year quarter. 

Fourth quarter interest income increased $529,000, or 8%, to $7.0 million compared to $6.4 million in the fourth quarter of 2023.  The growth in interest income year over year was due primarily to the growth in average loans, which increased $39.7 million during the year to $372.9 million, and an increase in the weighted average yield on average loans to 6.05% in the fourth quarter of 2024 compared to 5.78% in the fourth quarter of 2023.  The weighted average rate on interest-bearing liabilities increased 18 basis points to 4.37% in the fourth quarter of 2024 compared to 4.19% in the same quarter of 2023.  

Noninterest income increased $33,000, or 11%, to $334,000 in the fourth quarter compared to $301,000 in the fourth quarter of 2023.  Noninterest income for the fourth quarter of 2024 included a one-time bonus dividend on a small business investment company ("SBIC") investment of $92,000, while the previous year quarter included gain on sale of loans of $100,000.

Fourth quarter 2024 noninterest expense decreased $368,000, or 11%, from the same quarter in 2023 due primarily to the expense reduction initiative commenced in the second quarter of 2024.  Salaries and benefits expense decreased $396,000, or 17%, in the fourth quarter of 2024 compared to the prior year period.  The Bank had 56 employees at the end of 2024 compared to 62 employees at the end of 2023.  Other operating expenses increased $35,000 over the previous year quarter due principally to increased FDIC insurance assessment expense.

Annual Income Statement Comparison 

The Bank's net loss totaled $2.8 million, or $(0.38) per diluted share, for the year ended December 31, 2024 compared to a net loss of $4.3 million, or $(0.65) per diluted share, for the year ended December 31, 2023.  Core operating loss, a non-GAAP measure, was $510,000 for 2024 compared to $1.4 million for the prior year.

Net interest income increased $635,000 to $11.2 million for the year ended December 31, 2024 from $10.6 million for the prior year.  The Bank's net interest margin decreased to 2.18% for 2024 from 2.22% for 2023. 

Interest income increased $4.6 million, or 20%, to $27.9 million for the year ended December 31, 2024 compared to $23.3 million for the prior year.  The growth in interest income was due primarily to the growth in average loans, which increased $53.1 million during the year to $363.2 million, and an increase in the weighted average yield on average loans to 6.10% compared to 5.51% for the year ended December 31, 2023.  The weighted average rate on interest-bearing liabilities increased to 4.45% for 2024 compared to 3.72% for the prior year. 

Noninterest income increased $194,000, or 22%, to $1.1 million for the year ended December 31, 2024 compared to $873,000 for the prior year.  Noninterest income for 2024 included a one-time bonus dividend on a SBIC investment of $92,000, interest rate swap fee income of $83,000, and a one-time loss of $136,000 on the sale of a SBIC investment.

Noninterest expense decreased $66,000 for the year ended December 31, 2024 from the prior year resulting predominantly from the Bank's expense reduction initiative.  In connection with this initiative, a one-time severance expense of $87,000 was recognized in 2024.  Salaries and benefits expense decreased $486,000, or 6%, for the year ended December 31, 2024 compared to the year ended December 31, 2023.  Other operating expenses increased $344,000, or 9%, for 2024 over the previous year due principally to increased FDIC insurance assessment expense.

Annual Balance Sheet Comparison 

Total assets increased $14.0 million from $511.2 million at December 31, 2023 to $525.2 million at December 31, 2024.  During 2024, loans increased $39.5 million to $373.7 million and deposits decreased $5.0 million to $455.4 million.  The decrease in deposits was primarily due to a $4.7 million reduction in brokered deposits during 2024.  Other borrowings increased $15.0 million to $24.0 million at December 31, 2024 from $9.0 million at December 31, 2023. 

Shareholders' equity increased $4.6 million during the year ended December 31, 2024 to $42.2 million.  The Bank completed a $6.0 million common stock offering in June 2024.  Accumulated other comprehensive income/loss ("AOCI") improved to $16.3 million at December 31, 2024 compared to $17.3 million at December 31, 2023.  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 credit losses on funded and unfunded commitments.  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, 2024:

Capital and Capital Ratios

					Quarter Ended
					12/31/2024
					Amount		Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)					$  63,107		12.78 %
Tier 1 Capital (to risk-weighted assets)					$  58,563		11.86 %
Tier 1 Capital (to average assets)					$  58,563		10.79 %
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)					$  40,000		8.00 %
Tier 1 Capital (to average assets)					$  27,000		5.00 %

Loans

The Bank's outstanding loans increased $39.5 million, or 12%, to $373.7 million at December 31, 2024 compared to $334.1 million at December 31, 2023.  While not included in loans outstanding, the Bank also had unfunded loan commitments of $134.2 million, bringing total loans outstanding and unfunded commitments to $507.9 million at December 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 December 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		12/31/2024		Loan Portfolio
Other Construction & Land Development		$        62,205,197
Nonowner-occupied Commercial Real Estate		120,189,402
Total Commercial Real Estate		182,394,599		49 %
Owner-occupied Real Estate		104,076,085
C&I		85,547,728
Total C&I		189,623,813		51 %
Other Revolving Loans		1,655,313		0 %
Total		$      373,673,725

Credit Risk and Allowance for Credit Losses

The Bank had no nonaccrual loans at December 31, 2024 or December 31, 2023.  In the third quarter, the Bank reported its first nonaccruing commercial loan relationship of $1.5 million.  In the fourth quarter, after liquidating some of the industrial equipment collateral, the Bank repossessed the remainder with an estimated value of $305,000 and charged off $998,000.  The provision for credit losses was $1.7 million for the fourth quarter and $2.3 million for the year ended December 31, 2024 which included $1.1 million related to investment securities.  The provision for credit losses was $323,000 for the fourth quarter of 2023 and $2.9 million for the year ended December 31, 2023.  

The allowance for credit losses on loans was $4.1 million at December 31, 2024 compared to $3.7 million at December 31, 2023, which were 1.09% and 1.12% of outstanding loans, respectively.  The allowance for credit losses on unfunded loan commitments, recorded as a liability on the balance sheet, was $458,000 at December 31, 2024 compared to $678,000 at December 31, 2023, which were 0.34% and 0.50% of unfunded commitments, respectively.

Deferred Tax Asset and AOCI (Non-GAAP Measures)

The Bank's GAAP tangible book value per share was $5.28 at December 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 $7.71 at December 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 $3.1 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, 2024, the Bank had an aggregate AOCI loss of $16.3 million.  Assuming the underlying investment securities are held to maturity and there are no credit losses, the value of the securities will return to 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 Federal Reserve lowered the federal funds target rate by 50 basis points in September, 25 basis points in November and another 25 basis points in December of 2024 and signaled additional rate reductions would be considered.  We expect the Bank's net interest margin to steadily rise over the next two years although there could be some compression in the margin in the near term.

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)						December 31, 2024		December 31, 2023			$ Change		% Change
	Assets
	Cash & Due from Banks					$              23,947,020		$              33,610,971			$              (9,663,951)		-29 %
	Securities					122,762,837		137,537,443			(14,774,606)		-11 %
	Federal Funds Sold					-		-			-		0 %
	Loans					373,673,725		334,142,073			39,531,652		12 %
	Allowance for Credit Losses ("ACL")					(4,085,896)		(3,729,925)			(355,971)		-10 %
	Loans, Net					369,587,829		330,412,148			39,175,681		12 %
	Other Assets					8,862,991		9,591,119			(728,128)		-8 %
	Total Assets					$            525,160,677		$            511,151,681			$              14,008,996		3 %
	Liabilities
	Demand Deposits					$              92,613,735		$              99,389,815			$              (6,776,080)		-7 %
	ICS Reciprocal - Checking					2,713,755		14,204,733			(11,490,978)		-81 %
	Commercial Operating Accounts					95,327,490		113,594,548			(18,267,058)		-16 %
	Interest-bearing NOW					22,378,016		22,518,830			(140,814)		-1 %
	Core MMA & Savings					88,468,843		85,891,021			2,577,822		3 %
	ICS Reciprocal - MMA					65,089,274		76,963,368			(11,874,094)		-15 %
	Total MMA & Savings					153,558,117		162,854,389			(9,296,272)		-6 %
	Core Time Deposits					29,332,254		11,019,913			18,312,341		166 %
	CDARS - Reciprocal					19,709,000		10,601,322			9,107,678		86 %
	Brokered CDs					135,142,064		139,859,453			(4,717,389)		-3 %
	Total Time Deposits					184,183,318		161,480,688			22,702,630		14 %
	Total Deposits					455,446,941		460,448,455			(5,001,514)		-1 %
	Other Borrowings					24,000,000		9,000,000			15,000,000		167 %
	Federal Funds Purchased					-		-			-		0 %
	ACL on Unfunded Commitments					458,381		678,444			(220,063)		-32 %
	Other Liabilities					3,031,561		3,422,078			(390,517)		-11 %
	Total Liabilities					482,936,883		473,548,977			9,387,906		2 %
	Shareholders' Equity
	Common Stock					73,172,267		66,692,747			6,479,520		10 %
	Accumulated Deficit					(14,609,619)		(11,779,488)			(2,830,131)		-24 %
	Accumulated Other Comprehensive Loss					(16,338,854)		(17,310,555)			971,701		6 %
	Total Shareholders' Equity					42,223,794		37,602,704			4,621,090		12 %
	Total Liabilities & Shareholders' Equity					$            525,160,677		$            511,151,681			$              14,008,996		3 %
	Shares Outstanding					7,993,969		6,695,121			1,298,848		19 %
	Tangible Book Value per Share					$                       5.28		$                       5.62			$                      (0.34)		-6 %

 

Triad Business Bank
Income Statement (Unaudited)							For the Year Ended		For the Year Ended
							December 31, 2024		December 31, 2023			$ Change		% Change
	Interest Income
	Interest & Fees on Loans						$                         22,137,727		$                         17,093,432			$                            5,044,295		30 %
	Interest & Dividend Income on Securities						4,271,488		4,444,100			(172,612)		-4 %
	Interest Income on Balances Due from Banks						1,176,179		1,427,873			(251,694)		-18 %
	Other Interest Income						304,781		302,034			2,747		1 %
	Total Interest Income						27,890,175		23,267,439			4,622,736		20 %
	Interest Expense
	Interest on Checking Deposits						843,257		729,355			113,902		16 %
	Interest on Savings & MMA Deposits						5,397,173		5,664,205			(267,032)		-5 %
	Interest on Time Deposits						9,398,669		5,258,833			4,139,836		79 %
	Interest on Federal Funds Purchased						155		169			(14)		-8 %
	Interest on Borrowings						784,230		752,474			31,756		4 %
	Other Interest Expense						222,385		252,775			(30,390)		-12 %
	Total Interest Expense						16,645,869		12,657,811			3,988,058		32 %
	Net Interest Income						11,244,306		10,609,628			634,678		6 %
		Provision for Credit Losses					2,319,964		2,915,181			(595,217)		-20 %
	Net Interest Income After Provision for CL						8,924,342		7,694,447			1,229,895		16 %
	Total Noninterest Income						1,067,025		872,921			194,104		22 %
	Noninterest Expense
	Salaries & Benefits						8,119,171		8,604,883			(485,712)		-6 %
	Severance - One-time Expense						87,156		-			87,156		100 %
	Premises & Equipment						522,210		533,857			(11,647)		-2 %
	Total Other Noninterest Expense						4,092,961		3,748,468			344,493		9 %
	Total Noninterest Expense						12,821,498		12,887,208			(65,710)		-1 %
		Income (Loss) Before Income Tax					(2,830,131)		(4,319,840)			1,489,709		34 %
		Income Tax					-		-			-		0 %
		Net Income (Loss)					$                   (2,830,131)		$                   (4,319,840)			$                    1,489,709		34 %
	Net Income (Loss) per Share
		Basic					$                           (0.38)		$                           (0.65)			$                            0.27		41 %
		Diluted					$                           (0.38)		$                           (0.65)			$                            0.27		41 %
	Weighted Average Shares Outstanding
		Basic					7,372,953		6,653,922			719,031		11 %
		Diluted					7,372,953		6,653,922			719,031		11 %
	Pre-provision, Pre-tax Income (Loss)						$                      (510,167)		$                   (1,404,659)			$                       894,492		64 %

 

Triad Business Bank
Key Ratios & Other Information (Unaudited)
							Year Ended						Year Ended
							12/31/2024						12/31/2023
							Interest						Interest
							Income/		Yield/				Income/		Yield/
					Balance		Expense		Rate		Balance		Expense		Rate
Yield on Average Loans					$   363,211,812		$      22,137,727		6.095 %		$      310,144,916		$       17,093,432		5.511 %
Yield on Average Investment Securities					$   129,941,625		$        4,271,488		3.287 %		$      137,782,738		$          4,444,100		3.225 %
Yield on Average Interest-earning Assets					$   516,449,158		$      27,890,175		5.400 %		$      477,415,732		$       23,267,439		4.874 %
Cost of Average Interest-bearing Liabilities					$   374,250,222		$      16,645,869		4.448 %		$      340,428,915		$       12,657,811		3.718 %
Net Interest Margin
Interest Income							$      27,890,175						$       23,267,439
Interest Expense							16,645,869						12,657,811
Average Earnings Assets					$   516,449,158						$      477,415,732
Net Interest Income & Net Interest Margin							$      11,244,306		2.177 %				$       10,609,628		2.222 %
Loan to Asset Ratio
Loan Balance					$   373,673,725						$      334,142,073
Total Assets					525,160,677				71.154 %		511,151,681				65.370 %
Leverage Ratio
Tier 1 Capital					$     58,562,648						$         54,913,259
Average Total Assets					542,857,151				10.788 %		521,794,894				10.524 %
Unfunded Commitments to Extend Credit					$   134,193,703						$      135,959,421
Standby Letters of Credit					186,252						186,252

 

Triad Business Bank
Income Statement (Unaudited)							For Three Months Ended		For Three Months Ended
							December 31, 2024		December 31, 2023			$ Change		% Change
	Interest Income
	Interest & Fees on Loans						$                            5,673,515		$                            4,853,516			$                               819,999		17 %
	Interest & Dividend Income on Securities						1,011,942		1,170,658			(158,716)		-14 %
	Interest Income on Balances Due from Banks						222,737		322,412			(99,675)		-31 %
	Other Interest Income						51,342		83,452			(32,110)		-38 %
	Total Interest Income						6,959,536		6,430,038			529,498		8 %
	Interest Expense
	Interest on Checking Deposits						202,209		233,811			(31,602)		-14 %
	Interest on Savings & MMA Deposits						1,222,203		1,484,151			(261,948)		-18 %
	Interest on Time Deposits						2,379,797		1,829,874			549,923		30 %
	Interest on Federal Funds Purchased						-		-			-		0 %
	Interest on Borrowings						163,182		223,442			(60,260)		-27 %
	Other Interest Expense						24,831		67,927			(43,096)		-63 %
	Total Interest Expense						3,992,222		3,839,205			153,017		4 %
	Net Interest Income						2,967,314		2,590,833			376,481		15 %
		Provision for Credit Losses					1,669,709		322,715			1,346,994		417 %
	Net Interest Income After Provision for CL						1,297,605		2,268,118			(970,513)		-43 %
	Total Noninterest Income						333,915		300,928			32,987		11 %
	Noninterest Expense
	Salaries & Benefits						1,880,888		2,276,590			(395,702)		-17 %
	Severance - One-time Expense						-		-			-		0 %
	Premises & Equipment						130,108		137,398			(7,290)		-5 %
	Total Other Noninterest Expense						990,711		955,551			35,160		4 %
	Total Noninterest Expense						3,001,707		3,369,539			(367,832)		-11 %
		Income (Loss) Before Income Tax					(1,370,187)		(800,493)			(569,694)		-71 %
		Income Tax					-		-			-		0 %
		Net Income (Loss)					$                   (1,370,187)		$                      (800,493)			$                      (569,694)		-71 %
	Net Income (Loss) per Share
		Basic					$                           (0.17)		$                           (0.12)			$                           (0.05)		-43 %
		Diluted					$                           (0.17)		$                           (0.12)			$                           (0.05)		-43 %
	Weighted Average Shares Outstanding
		Basic					7,993,728		6,694,694			1,299,034		19 %
		Diluted					7,993,728		6,694,694			1,299,034		19 %
	Pre-provision, Pre-tax Income (Loss)						$                       299,522		$                      (477,778)			$                       777,300		163 %

 

Triad Business Bank
Key Ratios & Other Information (Unaudited)
							Quarter Ended						Quarter Ended
							12/31/2024						12/31/2023
							Interest						Interest
							Income/		Yield/				Income/		Yield/
					Balance		Expense		Rate		Balance		Expense		Rate
Yield on Average Loans					$   372,850,408		$        5,673,515		6.054 %		$      333,128,084		$          4,853,516		5.780 %
Yield on Average Investment Securities					$   126,681,972		$        1,011,942		3.178 %		$      134,652,018		$          1,170,658		3.449 %
Yield on Average Interest-earning Assets					$   519,208,295		$        6,959,536		5.333 %		$      492,038,846		$          6,430,038		5.185 %
Cost of Average Interest-bearing Liabilities					$   363,454,917		$        3,992,222		4.370 %		$      363,885,127		$          3,839,205		4.186 %
Net Interest Margin
Interest Income							$        6,959,536						$          6,430,038
Interest Expense							3,992,222						3,839,205
Average Earnings Assets					$   519,208,295						$      492,038,846
Net Interest Income & Net Interest Margin							$        2,967,314		2.274 %				$          2,590,833		2.089 %
Loan to Asset Ratio
Loan Balance					$   373,673,725						$      334,142,073
Total Assets					525,160,677				71.154 %		511,151,681				65.370 %
Leverage Ratio
Tier 1 Capital					$     58,562,648						$         54,913,259
Average Total Assets					542,857,151				10.788 %		521,794,894				10.524 %
Unfunded Commitments to Extend Credit					$   134,193,703						$      135,959,421
Standby Letters of Credit					186,252						186,252

 

Triad Business Bank
Balance Sheet (Unaudited)						December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
	Assets
	Cash & Due from Banks					$              23,947,020		$              30,648,321		$              21,551,174		$              30,489,026		$              33,610,971
	Securities					122,762,837		128,716,405		130,253,022		131,199,978		137,537,443
	Federal Funds Sold					-		-		-		-		-
	Loans					373,673,725		371,611,690		363,409,566		359,199,494		334,142,073
	Allowance for Credit Losses ("ACL")					(4,085,896)		(4,559,992)		(3,708,405)		(3,681,954)		(3,729,925)
	Loans, Net					369,587,829		367,051,698		359,701,161		355,517,540		330,412,148
	Other Assets					8,862,991		8,760,394		9,915,475		9,943,701		9,591,119
	Total Assets					$            525,160,677		$            535,176,818		$            521,420,832		$            527,150,245		$            511,151,681
	Liabilities
	Demand Deposits					$              92,613,735		$            123,144,094		$            109,414,180		$            102,564,892		$              99,389,815
	ICS Reciprocal - Checking					2,713,755		4,692,723		4,089		11,390,196		14,204,733
	Commercial Operating Accounts					95,327,490		127,836,817		109,418,269		113,955,088		113,594,548
	Interest-bearing NOW					22,378,016		19,405,621		19,161,806		21,532,867		22,518,830
	Core MMA & Savings					88,468,843		87,007,973		93,142,481		102,969,388		85,891,021
	ICS Reciprocal - MMA					65,089,274		49,159,929		32,959,556		42,157,824		76,963,368
	Total MMA & Savings					153,558,117		136,167,902		126,102,037		145,127,212		162,854,389
	Core Time Deposits					29,332,254		29,305,651		26,866,489		21,153,172		11,019,913
	CDARS - Reciprocal					19,709,000		19,233,313		18,975,442		11,701,169		10,601,322
	Brokered CDs					135,142,064		145,377,533		143,942,948		164,119,991		139,859,453
	Total Time Deposits					184,183,318		193,916,497		189,784,879		196,974,332		161,480,688
	Total Deposits					455,446,941		477,326,837		444,466,991		477,589,499		460,448,455
	Other Borrowings					24,000,000		9,000,000		30,000,000		9,000,000		9,000,000
	Federal Funds Purchased					-		-		-		-		-
	ACL on Unfunded Commitments					458,381		498,632		366,167		392,328		678,444
	Other Liabilities					3,031,561		3,336,685		3,174,047		3,205,767		3,422,078
	Total Liabilities					482,936,883		490,162,154		478,007,205		490,187,594		473,548,977
	Shareholders' Equity
	Common Stock					73,172,267		73,086,971		72,997,463		66,938,869		66,692,747
	Accumulated Deficit					(14,609,619)		(13,239,432)		(12,491,018)		(11,880,398)		(11,779,488)
	Accumulated Other Comprehensive Loss					(16,338,854)		(14,832,875)		(17,092,818)		(18,095,820)		(17,310,555)
	Total Shareholders' Equity					42,223,794		45,014,664		43,413,627		36,962,651		37,602,704
	Total Liabilities & Shareholders' Equity					$            525,160,677		$            535,176,818		$            521,420,832		$            527,150,245		$            511,151,681
	Shares Outstanding					7,993,969		7,989,860		7,985,194		6,695,121		6,695,121
	Tangible Book Value per Share					$                       5.28		$                       5.63		$                       5.44		$                       5.52		$                       5.62

 

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, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
	Interest Income
	Interest & Fees on Loans						$                            5,673,515		$                            5,727,249		$                            5,483,641		$                            5,253,323		$                                4,853,516
	Interest & Dividend Income on Securities						1,011,942		1,082,175		1,087,361		1,090,009		1,170,658
	Interest Income on Balances Due from Banks						222,737		300,897		369,258		283,289		322,412
	Other Interest Income						51,342		80,740		85,328		87,369		83,452
	Total Interest Income						6,959,536		7,191,061		7,025,588		6,713,990		6,430,038
	Interest Expense
	Interest on Checking Deposits						202,209		206,359		216,178		218,511		233,811
	Interest on Savings & MMA Deposits						1,222,203		1,317,088		1,427,510		1,430,372		1,484,151
	Interest on Time Deposits						2,379,797		2,356,834		2,501,019		2,161,020		1,829,874
	Interest on Federal Funds Purchased						-		-		155		-		-
	Interest on Borrowings						163,182		298,956		122,057		200,034		223,442
	Other Interest Expense						24,831		65,224		65,692		66,637		67,927
	Total Interest Expense						3,992,222		4,244,461		4,332,611		4,076,574		3,839,205
	Net Interest Income						2,967,314		2,946,600		2,692,977		2,637,416		2,590,833
		Provision for (Reversal of) Credit Losses					1,669,709		984,052		291		(334,087)		322,715
	Net Interest Income After Provision for CL						1,297,605		1,962,548		2,692,686		2,971,503		2,268,118
	Total Noninterest Income						333,915		325,482		103,409		304,219		300,928
	Noninterest Expense
	Salaries & Benefits						1,880,888		1,938,269		2,089,993		2,210,023		2,276,590
	Severance - One-time Expense						-		-		87,153		-		-
	Premises & Equipment						130,108		124,197		131,464		136,442		137,398
	Total Other Noninterest Expense						990,711		973,977		1,098,106		1,030,167		955,551
	Total Noninterest Expense						3,001,707		3,036,443		3,406,716		3,376,632		3,369,539
		Loss Before Income Tax					(1,370,187)		(748,413)		(610,621)		(100,910)		(800,493)
		Income Tax					-		-		-		-		-
		Net Loss					$                   (1,370,187)		$                      (748,413)		$                      (610,621)		$                      (100,910)		$                         (800,493)
	Net Loss per Share
		Basic					$                           (0.17)		$                           (0.09)		$                           (0.09)		$                           (0.02)		$                              (0.12)
		Diluted					$                           (0.17)		$                           (0.09)		$                           (0.09)		$                           (0.02)		$                              (0.12)
	Weighted Average Shares Outstanding
		Basic					7,993,728		7,988,720		6,800,657		6,695,121		6,694,694
		Diluted					7,993,728		7,988,720		6,800,657		6,695,121		6,694,694
	Pre-provision, Pre-tax Income (Loss)						$                       299,522		$                       235,639		$                      (610,330)		$                      (434,997)		$                         (477,778)

 

Triad Business Bank
Capital and Capital Ratios (Unaudited)
					Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
					12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023
					Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)					$ 63,107		12.78 %		$ 64,907		13.05 %		$ 64,581		13.26 %		$ 59,133		12.22 %		$ 59,322		12.70 %
Tier 1 Capital (to risk-weighted assets)					$ 58,563		11.86 %		$ 59,848		12.03 %		$ 60,507		12.43 %		$ 55,059		11.38 %		$ 54,913		11.76 %
Tier 1 Capital (to average assets)					$ 58,563		10.79 %		$ 59,848		10.91 %		$ 60,507		11.05 %		$ 55,059		10.37 %		$ 54,913		10.52 %
Minimum To Be Well-Capitalized Under
Prompt Corrective Action Provisions
(dollars in thousands)
Total Capital (to risk-weighted assets)					$ 49,000		10.00 %		$ 50,000		10.00 %		$ 49,000		10.00 %		$ 48,000		10.00 %		$ 47,000		10.00 %
Tier 1 Capital (to risk-weighted assets)					$ 40,000		8.00 %		$ 40,000		8.00 %		$ 39,000		8.00 %		$ 39,000		8.00 %		$ 37,000		8.00 %
Tier 1 Capital (to average assets)					$ 27,000		5.00 %		$ 27,000		5.00 %		$ 27,000		5.00 %		$ 27,000		5.00 %		$ 26,000		5.00 %

 

Triad Business Bank
Non-GAAP Measures (Unaudited)
Tangible Book Value
								Actual 12/31/2024		Non-GAAP 12/31/2024
Total Shareholders' Equity								$       42,223,794		$       42,223,794
Eliminate Deferred Tax Asset Valuation Allowance								-		3,053,456
Eliminate Accumulated Other Comprehensive Loss								-		16,338,854
Adjusted Shareholders' Equity								$       42,223,794		$       61,616,104
Shares Outstanding								7,993,969		7,993,969
Tangible Book Value per Share								$                  5.28		$                  7.71
Effect of Non-GAAP Measures on Tangible Book Value										$                  2.43
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, 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 Income (Loss)
								Year Ended 12/31/2024		Year Ended 12/31/2023
Loss Before Income Tax								$        (2,830,131)		$        (4,319,840)
Provision for Credit Losses								2,319,964		2,915,181
Pre-provision Loss Before Income Tax (Non-GAAP)								$           (510,167)		$        (1,404,659)
								Qtr Ended 12/31/2024		Qtr Ended 12/31/2023
Loss Before Income Tax								$        (1,370,187)		$           (800,493)
Provision for Credit Losses								1,669,709		322,715
Pre-provision Income (Loss) Before Income Tax (Non-GAAP)								$            299,522		$           (477,778)
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 caused TBBC's $1.4 million loss in Q4 2024?

The loss was primarily due to a $1.7 million provision for credit losses, including a $1.1 million reserve for a downgraded corporate bond and a $998,000 loan charge-off.

How much did TBBC's loan portfolio grow in 2024?

TBBC's loans increased by $39.5 million (12%) to $373.7 million by December 31, 2024.

What was TBBC's capital position at the end of 2024?

Total regulatory capital was $63.1 million or 12.78% of risk-weighted assets, supported by a $6.0 million common stock offering in June 2024.

How did TBBC's net interest margin perform in Q4 2024?

Net interest margin improved to 2.27% from 2.09% in Q4 2023, with net interest income increasing by $376,000.

What cost-cutting measures did TBBC implement in 2024?

TBBC reduced operating expenses by $368,000 (11%), decreased employee count from 62 to 56, and paused director compensation.