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RegulatoryMatters
 9 Months Ended
Sep. 30, 2014
Regulatory Capital Requirements [Abstract]  
Regulatory Matters

NOTE 12 - Regulatory Matters

The Company (on a consolidated basis), TSB and TCB are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s, TSB’s, or TCB’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company, TSB, and TCB must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulations to ensure capital adequacy require the Company, TSB, and TCB to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk weighted assets, and of Tier 1 capital to average assets.

As of September 30, 2014, TSB’s and TCB’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized” they must maintain minimum total risk based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the table. At September 30, 2014, the most recent notification categorized TSB and TCB as “well capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since September 30, 2014 that management believes would change either institution’s category.

In July 2013, federal banking regulators released final rules for the regulation of capital and liquidity for U.S. banking organizations, establishing a new comprehensive capital framework (Basel III) for U.S. banking organizations that will become effective for reporting periods beginning after January 1, 2015 (subject to a phase-in period through January 2019).

In addition, under the final rules, bank holding companies with less than $15 billion in assets as of December 31, 2009 are allowed to continue to include junior subordinated debentures in Tier 1 capital, subject to certain restrictions. However, if an institution grows to above $15 billion in assets as a result of an acquisition, or organically grows to above $15 billion in assets and then makes an acquisition, the combined trust preferred issuances must be phased out of Tier 1 and into Tier 2 capital (75% in 2015 and 100% in 2016). It is possible that the Company may accelerate redemption of the existing junior subordinated debentures. All of the debentures issued to the Trusts, less the common stock of the Trusts, qualified as Tier 1 capital as of September 30, 2014, under guidance issued by the Board of Governors of the Federal Reserve System.

The actual capital amounts and ratios for the Company, TSB, and TCB are presented in the following table as of September 30, 2014 and December 31, 2013:

 

 

 

 

 

 

To Be Adequately

 

 

To Be Well

 

 

 

 

 

 

Capitalized Under

 

 

Capitalized Under

 

 

 

 

 

 

Prompt Corrective

 

 

Prompt Corrective

 

 

 

Actual

 

 

Action Provisions

 

 

Action Provisions

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

As of September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

167,709

 

 

 

15.3%

 

 

$

87,863

 

 

 

8.0%

 

 

N/A

 

 

N/A

 

Triumph Savings Bank, SSB

 

$

54,819

 

 

 

16.9%

 

 

$

26,027

 

 

 

8.0%

 

 

$

32,534

 

 

 

10.0%

 

Triumph Community Bank

 

$

111,152

 

 

 

14.5%

 

 

$

61,428

 

 

 

8.0%

 

 

$

76,785

 

 

 

10.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital (to risk weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

160,280

 

 

 

14.6%

 

 

$

43,942

 

 

 

4.0%

 

 

N/A

 

 

N/A

 

Triumph Savings Bank, SSB

 

$

51,250

 

 

 

15.8%

 

 

$

13,008

 

 

 

4.0%

 

 

$

19,511

 

 

 

6.0%

 

Triumph Community Bank

 

$

107,293

 

 

 

14.0%

 

 

$

30,714

 

 

 

4.0%

 

 

$

46,071

 

 

 

6.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

160,280

 

 

 

12.2%

 

 

$

52,551

 

 

 

4.0%

 

 

N/A

 

 

N/A

 

Triumph Savings Bank, SSB

 

$

51,250

 

 

 

12.8%

 

 

$

15,991

 

 

 

4.0%

 

 

$

19,988

 

 

 

5.0%

 

Triumph Community Bank

 

$

107,293

 

 

 

11.9%

 

 

$

36,162

 

 

 

4.0%

 

 

$

45,203

 

 

 

5.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

145,722

 

 

 

14.5%

 

 

$

80,398

 

 

 

8.0%

 

 

N/A

 

 

N/A

 

Triumph Savings Bank, SSB

 

$

50,985

 

 

 

16.4%

 

 

$

24,871

 

 

 

8.0%

 

 

$

31,088

 

 

 

10.0%

 

Triumph Community Bank

 

$

89,690

 

 

 

13.0%

 

 

$

55,194

 

 

 

8.0%

 

 

$

68,992

 

 

 

10.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital (to risk weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

142,077

 

 

 

14.1%

 

 

$

40,306

 

 

 

4.0%

 

 

N/A

 

 

N/A

 

Triumph Savings Bank, SSB

 

$

48,064

 

 

 

15.5%

 

 

$

12,404

 

 

 

4.0%

 

 

$

18,605

 

 

 

6.0%

 

Triumph Community Bank

 

$

88,921

 

 

 

12.9%

 

 

$

27,572

 

 

 

4.0%

 

 

$

41,359

 

 

 

6.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

142,077

 

 

 

12.9%

 

 

$

44,055

 

 

 

4.0%

 

 

N/A

 

 

N/A

 

Triumph Savings Bank, SSB

 

$

48,064

 

 

 

13.6%

 

 

$

14,136

 

 

 

4.0%

 

 

$

17,671

 

 

 

5.0%

 

Triumph Community Bank

 

$

88,921

 

 

 

10.1%

 

 

$

35,216

 

 

 

4.0%

 

 

$

44,020

 

 

 

5.0%

 

  

Triumph has made certain commitments to the Federal Reserve Bank, including maintaining TSB’s leverage capital ratio (Tier 1 capital to average assets) at no less than 12.0% until January 1, 2015.

TCB’s board of directors has agreed to maintain a minimum Tier 1 capital to average assets ratio of 8.0% of adjusted average assets and total risk-based ratio of 10.0%.

Dividends paid by banks are limited to, without prior regulatory approval, current year earnings and earnings less dividends paid during the preceding two years.