2013ANNUALREPORT
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If you’re a sports fan, the end of the year is a very exciting time as you have the opportunity to experience the previous year’s “Best Plays,” “Best Shots,” or “Best Putts” of your favorite sports team or golfer. Since our specialty is banking, we want to share our “2013 Top 5 Triumph Moments” with you. As we continue to grow both in size and profitability, we predict our future “Top 5” will be even more exciting than this year’s.
First, we are pleased to report to you a record 2013 after tax profit of $3,399,000 which is up 71% over our 2012 profit of $1,986,000. Increases of over 13% in loans and an increased profit margin on loans were key reasons for the large increase. Per share earnings were $0.83 and ROE (return on beginning equity) was 8.7%. Our short term goal is to get the ROE above 10% so we are progressing toward our goal. We are pleased with this profit as it demonstrates the convergence of a growing balance sheet, attention to operating expenses, and good asset quality. Another important note is this is our fifth year in a row to report a profit, and only one other Memphis based bank can say this.
Second, our asset quality continues to be very good. Despite our rapid growth, we have been able to keep our asset quality expense (loan losses, losses on the sale of foreclosed properties and the legal expense of collecting loan balances) below 30/100 of 1%. This compares very favorably with our peers.
Third, we ended the year with assets in excess of $430,000,000 and now have $500,000,000 in our sights. The $500,000,000 in assets is an important objective as our industry recognizes this as a different class of community bank.
Fourth, on August 31, 2013, we purchased M&P Mortgage from Merchants & Planters Bank of Bolivar, TN. We merged this company into our own mortgage operation and named the combined operation Triumph Mortgage. The combined volume will be more than 10 times the previous pre-acquisition volume and also allows us to add additional mortgage products such as Jumbo Loans without Private Mortgage Insurance and very competitively priced Adjustable Rate Mortgages. Mortgage did not contribute to our income in 2013, but we expect it will have a favorable impact on our 2014 earnings.
Fifth and finally, we opened our new Operations Center in May at Moriah Woods Office Park. This will help us increase efficiencies and allow for future growth of bank operations and administration.
One negative this year was the value of our investment portfolio. Banks have investment portfolios to provide backup liquidity to fund loans. In 2013, the market value of our portfolio fell $800,000. Per GAAP accounting, we are required to report this loss as a reduction in Equity on the Balance Sheet, and it is not shown on the income statement. We normally purchase investments that have a shorter duration, higher credit quality and with a plan to hold until maturity. We expect some rebound in the market value of these assets as they mature, and since we plan on holding most until maturity, this should have a minimal effect on our equity over time.
Our plan for 2014 is to increase loans and assets another 13-14% and exceed $500 million in Assets. We encourage you to refer business to us which will help us reach this goal.
Thank you for all of your support, as always. Please call us when we can be of service to you, your family and friends.
Sincerely,
Hilliard R. Crews William J. Chase, Jr.Chairman of the Board President and Chief Executive Officer
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$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
TOTA
L A
SSE
TS
2009 2010 2011 2012 2013
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
NE
T LO
AN
S
2009 2010 2011 2012 2013
$40,000,000
$30,000,000
$20,000,000
$10,000,000
SHA
RE
HO
LDE
RS’
EQ
UIT
Y
2009 2010 2011 2012 2013
$400,000,000
$300,000,000
$200,000,000
$100,000,000
TOTA
L D
EP
OSI
TS &
B
OR
RO
WE
D F
UN
DS
2009 2010 2011 2012 2013
$1,500,000
$1,125,000
$750,000
$375,000
NO
N IN
TER
EST
INC
OM
E
2009 2010 2011 2012 2013
$6,000,000
$4,500,000
$3,000,000
$1,500,000
NE
T IN
CO
ME
BE
FOR
E T
AX
ES
2009 2010 2011 2012 2013
Consolidated Balance Sheet Period ending 12/31/2013
ASSETS
Cash and Cash Equivalents
Securities Available for Sale
Loans Held for Sale
Loans, Net of Deferred Fees and Allowance for Loan Losses
Premises and Equipment, Net of Accumulated Depreciation
Other Assets
Total Assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Other Borrowings
Other Liabilities
Total Liabilities
Preferred Stock: 1,000,000 Shares Authorized
Class A - 295,500 Shares Issued and Outstanding
Class B - 12,167 Shares Issued and Outstanding
Common Stock: 5,000,000 Shares Authorized
4,115,708 Shares Issued
4,072,108 Shares Outstanding
Capital Surplus and Additional Paid-In Capital
Treasury Stock, 43,600 Shares Redeemed
Accumulated Other Comprehensive Income
Retained Earnings (Accumulated Deficit)
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity
2013
9,881,829
56,682,383
3,061,953
354,929,170
3,306,270
9,578,567
437,440,172
380,257,481
13,000,000
2,188,077
395,445,558
4,115,708
35,126,606
(490,500)
(677,881)
3,920,681
41,994,614
437,440,172
2012
9,012,435
63,116,259
1,764,117
313,627,988
3,475,742
8,048,476
399,045,017
340,221,235
18,000,000
1,530,214
359,751,449
3,546,000
146,004
3,629,311
31,846,582
(490,500)
91,563
524,608
39,293,568
399,045,017
2011
12,401,311
43,717,719
165,500
241,289,209
3,573,357
7,242,128
308,389,224
275,592,184
6,600,000
1,430,248
283,622,432
3,546,000
146,004
2,279,311
21,030,259
(490,500)
(290,106)
(1,454,176)
24,766,792
308,389,224
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Consolidated Income StatementPeriod ending 12/31/2013
INTEREST INCOME
Loan Interest Income
Fee Income
Investment
Fed Funds Sold
Other Income
Total Interest and Fee Income
INTEREST EXPENSE
Checking
Savings
CD
Borrowed Funds
Total Interest Expenses
Net Interest Income
Non-Interest Income
NON-INTEREST EXPENSE
Employee
Occupancy
F.F. & E. and D.P.
Other
Total Non-Interest Expenses
Allowance for Loan Losses
Net Income Before Taxes
Income Tax (Credit)
Net Income
2013
16,841,698
648,195
1,210,595
9,665
114,396
18,824,549
957,503
14,946
1,622,239
40,102
2,634,790
16,189,759
1,410,630
6,006,723
1,151,371
1,323,741
2,295,383
10,777,218
1,065,000
5,758,171
2,358,450
3,399,721
2012
14,291,471
568,860
1,209,260
20,212
75,260
16,165,063
982,271
20,620
1,937,211
103,012
3,043,114
13,121,949
808,901
5,060,613
1,046,580
1,075,362
2,136,289
9,318,844
1,281,000
3,331,006
1,344,922
1,986,084
2011
12,401,485
406,689
989,658
20,034
58,440
13,876,306
875,279
15,981
2,361,413
135,771
3,388,444
10,487,862
621,723
3,818,621
822,752
240,919
2,384,269
7,266,561
1,262,000
2,581,024
(545,000)
3,126,024
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Triumph is happy to announce that the Board of Directors recently adopted a new logo and brand message that is being rolled out throughout 2014. Let’s talk growth reflects Triumph’s focus of working side by side with its customers each day to help them reach their goals and experience growth. This growth can be demonstrated through helping them fund a new or existing business, earn a greater interest rate on their accounts and CDs, or through the purchase of a new home.
2014 also brings enhanced technology to our customers, including a new Mobile App for all hand held devices featuring Mobile Capture for our consumer customers that allows remote depositing of checks. We are also proud to launch our new redesigned website www.triumphbank.com. Our new site offers more convenient navigation for Triumph customers to conduct their online banking and discover the features of additional accounts they may need.
Let’s talk growth also reflects inwardly as we are proud of the team of Triumph employees that demonstrate outstanding customer service and always strive to exceed your expectations. Triumph encourages them to grow and flourish in their careers because when we triumph, you triumph.
Let’s talk growth.
A bank should be more about safeguarding your savings. It should help you reach your potential. Triumph offers a host of services that can do just that. Welcome to Triumph.
Let’s talk growth.
Confidence. Ability. Worth.
triumphbank.com triumphmortgage.com
(901) 333-8800
triumphbank.com triumphmortgage.com
(901) 333-8800
Growth, without the growing pains. Your personal growth should be without limits.
Without impediment. Triumph offers a suite of
financial services that capitalize on your potential
without ever slowing you down. Welcome to Triumph.
Let’s talk growth.
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Commercial Lending ServicesCommercial Real Estate LoansResidential Real Estate LoansAccounts Receivable, Inventory, & Equipment LoansSmall Business “SBA” Loans
Commercial Deposit ServicesBusiness Analysis AccountsBusiness CheckingBusiness SavingsBusiness Wealth Money Market AccountsCertificates of DepositBusiness Remote Deposit CaptureLock Box ServicesOnline BankingACH & Wire Transfer ServicesNight DepositoryBusiness Credit CardsBusiness Bill PaymentPositive PayeStatementsInvestment / Loan Sweep
Consumer Lending ServicesHome Equity Lines of CreditAutomobile LoansLoans for Personal ExpendituresMortgage Origination Loans
Consumer Deposit ServicesComplimentary CheckingPerformance CheckingPrime Timer CheckingClassic SavingsJunior Banker SavingsConsumer Wealth Money Market AccountsCertificates of DepositIndividual Retirement Accounts (IRAs)Online Banking & Bill Pay ServicesMobile BankingMobile Deposit CaptureTelephone BankingSafe Deposit BoxesATMs Including nationwide networkseStatements
Hilliard R. CrewsCHAIRMAN Of THE BOARD Of TRIuMPH BANCSHARES, INC.
CHAIRMAN, SHELBy GROuP INTERNATIONAL, INC.
William J. Chase, Jr.PRESIDENT & CEO, TRIuMPH BANk
Michael J. McCarverEVP & COO, TRIuMPH BANk
A. Douglas CollinsPRESIDENT & CEO, COLDWELL BANkER COLLINS-MAuRy, INC. REALTORS
fOuNDER & CEO, SOVEREIGN HOMES, LLC.
Jason L. CrewsCHIEf MANAGER, CREWS REALTy, LLC
Stephen T. DunavantSENIOR MANAGING DIRECTOR, CBIZ MHM
Mark J. HalperinEVP & COO, BOyLE INVESTMENT COMPANy
Rick C. MassonSENIOR DIRECTOR, CAISSA PuBLIC STRATEGy
SPECIAL MASTER, OVERSEEING SCHOOLS MERGER
Joseph W. Mirabile, Ph.D.CEO, MIRABILE INVESTMENT CORPORATION
Larry W. Papasan RETIRED PRESIDENT Of MLG&W, SMITH & NEPHEW ORTHOPAEDICS
David C. PerdueCEO, ASENTINEL
Richard L. PowellPRINCIPAL, HMP INSuRANCE
King W. Rogers, IIIATTORNEy Of COuNSEL, GLANkLER BROWN, PLLC
Mitchell D. SpurlockCHAIRMAN, AquA CHEMPACS
Thomas G. Stovall, M.D., MBAPHySICIAN & PARTNER, WOMEN’S HEALTH SPECIALISTS, INC.
FINANCIAL SERVICES
BOARD OF DIRECTORS
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