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 December31, 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 December31, 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 December31, 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 December31, 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 RatioActual(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 UnderPrompt 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 December31, 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 ofLoan Category 12/31/2024 Loan PortfolioOther Construction & Land Development $ 62,205,197Nonowner-occupied Commercial Real Estate 120,189,402Total Commercial Real Estate 182,394,599 49%Owner-occupied Real Estate 104,076,085C&I 85,547,728Total 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 $3.1million. 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 December31, 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 BankBalance 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 BankIncome 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 BankKey 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 RateYield 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 MarginInterest Income $ 27,890,175 $ 23,267,439Interest Expense 16,645,869 12,657,811Average Earnings Assets $ 516,449,158 $ 477,415,732Net Interest Income & Net Interest Margin $ 11,244,306 2.177% $ 10,609,628 2.222%Loan to Asset RatioLoan Balance $ 373,673,725 $ 334,142,073Total Assets 525,160,677 71.154% 511,151,681 65.370%Leverage RatioTier 1 Capital $ 58,562,648 $ 54,913,259Average Total Assets 542,857,151 10.788% 521,794,894 10.524%Unfunded Commitments to Extend Credit $ 134,193,703 $ 135,959,421Standby Letters of Credit 186,252 186,252
Triad Business BankIncome 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 BankKey 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 RateYield 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 MarginInterest Income $ 6,959,536 $ 6,430,038Interest Expense 3,992,222 3,839,205Average Earnings Assets $ 519,208,295 $ 492,038,846Net Interest Income & Net Interest Margin $ 2,967,314 2.274% $ 2,590,833 2.089%Loan to Asset RatioLoan Balance $ 373,673,725 $ 334,142,073Total Assets 525,160,677 71.154% 511,151,681 65.370%Leverage RatioTier 1 Capital $ 58,562,648 $ 54,913,259Average Total Assets 542,857,151 10.788% 521,794,894 10.524%Unfunded Commitments to Extend Credit $ 134,193,703 $ 135,959,421Standby Letters of Credit 186,252 186,252
Triad Business BankBalance 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 BankIncome 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 BankCapital 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 RatioActual(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 UnderPrompt 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 BankNon-GAAP Measures (Unaudited)Tangible Book Value Actual Non-GAAP 12/31/2024 12/31/2024Total Shareholders' Equity $ 42,223,794 $ 42,223,794Eliminate Deferred Tax Asset Valuation Allowance – 3,053,456Eliminate Accumulated Other Comprehensive Loss – 16,338,854Adjusted Shareholders' Equity $ 42,223,794 $ 61,616,104Shares Outstanding 7,993,969 7,993,969Tangible Book Value per Share $ 5.28 $ 7.71Effect of Non-GAAP Measures on Tangible Book Value $ 2.43During the start-up phase of the Bank, a valuation allowance was created which fully impairs the deferred tax asset. When sufficient, verifiableevidence exists (generally, sustained profitability) demonstrating that the deferred tax asset will more likely than not be realized, the valuationallowance will be eliminated. This Non-GAAP measure is shown to disclose the effect on tangible book value per share at December 31, 2024 hadthere 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 valuewill return to face value at maturity, assuming the underlying securities are held to maturity and there is no credit loss, accumulated othercomprehensive loss has been eliminated in this Non-GAAP measure.Pre-provision Income (Loss) Year Ended Year Ended 12/31/2024 12/31/2023Loss Before Income Tax $ (2,830,131) $ (4,319,840)Provision for Credit Losses 2,319,964 2,915,181Pre-provision Loss Before Income Tax (Non-GAAP) $ (510,167) $ (1,404,659) Qtr Ended Qtr Ended 12/31/2024 12/31/2023Loss Before Income Tax $ (1,370,187) $ (800,493)Provision for Credit Losses 1,669,709 322,715Pre-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
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