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Regulatory Matters
 12 Months Ended
Dec. 31, 2017
Regulatory Capital Requirements [Abstract]  
Regulatory Matters

NOTE 17 — REGULATORY MATTERS

The Company (on a consolidated basis) and TBK Bank 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 or TBK Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and TBK Bank 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 regulation to ensure capital adequacy require the Company and TBK Bank to maintain minimum amounts and ratios (set forth in the table below) of total, common equity Tier 1, and Tier 1 capital to risk weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31, 2017, the Company and TBK Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2017, TBK Bank’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,” TBK Bank must maintain minimum total risk based, common equity Tier 1 risk based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since December 31, 2017 that management believes have changed TBK Bank’s category.

The actual capital amounts and ratios for the Company and TBK Bank as of December 31, 2017 and 2016 are presented in the following table:

 

 

 

 

 

 

 

 

To Be Well

 

 

 

 

 

 

 

 

 

Capitalized Under

 

 

 

 

 

 

Minimum for Capital

 

 

Prompt Corrective

 

 

 

Actual

 

 

Adequacy Purposes

 

 

Action Provisions

 

(Dollars in thousands)

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

As of December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

436,036

 

 

13.2%

 

 

$

264,026

 

 

 

8.0%

 

 

N/A

 

 

N/A

 

TBK Bank, SSB

 

$

361,068

 

 

11.4%

 

 

$

254,139

 

 

 

8.0%

 

 

$

317,674

 

 

 

10.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital (to risk weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

367,958

 

 

11.1%

 

 

$

198,019

 

 

 

6.0%

 

 

N/A

 

 

N/A

 

TBK Bank, SSB

 

$

341,910

 

 

10.8%

 

 

$

190,603

 

 

 

6.0%

 

 

$

254,137

 

 

 

8.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital (to risk weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

320,265

 

 

9.7%

 

 

$

148,514

 

 

 

4.5%

 

 

N/A

 

 

N/A

 

TBK Bank, SSB

 

$

341,910

 

 

10.8%

 

 

$

142,952

 

 

 

4.5%

 

 

$

206,486

 

 

 

6.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

367,958

 

 

11.8%

 

 

$

124,754

 

 

 

4.0%

 

 

N/A

 

 

N/A

 

TBK Bank, SSB

 

$

341,910

 

 

11.1%

 

 

$

123,088

 

 

 

4.0%

 

 

$

153,860

 

 

 

5.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

342,059

 

 

14.6%

 

 

$

187,449

 

 

 

8.0%

 

 

N/A

 

 

N/A

 

TBK Bank, SSB

 

$

293,313

 

 

12.9%

 

 

$

181,640

 

 

 

8.0%

 

 

$

227,050

 

 

 

10.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital (to risk weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

277,605

 

 

11.8%

 

 

$

140,587

 

 

 

6.0%

 

 

N/A

 

 

N/A

 

TBK Bank, SSB

 

$

277,593

 

 

12.2%

 

 

$

136,230

 

 

 

6.0%

 

 

$

181,640

 

 

 

8.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital (to risk weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

238,439

 

 

10.2%

 

 

$

105,440

 

 

 

4.5%

 

 

N/A

 

 

N/A

 

TBK Bank, SSB

 

$

277,593

 

 

12.2%

 

 

$

102,173

 

 

 

4.5%

 

 

$

147,583

 

 

 

6.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Triumph Bancorp, Inc.

 

$

277,605

 

 

10.9%

 

 

$

102,303

 

 

 

4.0%

 

 

N/A

 

 

N/A

 

TBK Bank, SSB

 

$

277,593

 

 

11.0%

 

 

$

100,802

 

 

 

4.0%

 

 

$

126,002

 

 

 

5.0%

 

 

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

Beginning in January 2016, the implementation of the capital conservation buffer set forth by the Basel III regulatory capital framework was effective for the Company starting at 0.625% of risk weighted assets above the minimum risk based capital ratio requirements and increasing 0.625% each year thereafter, until it reaches 2.5% on January 1, 2019. The capital conservation buffer was 1.25% and 0.625% at December 31, 2017 and 2016, respectively. The capital conservation buffer is designed to absorb losses during periods of economic stress and requires increased capital levels for the purpose of capital distributions and other payments. Failure to meet the full amount of the buffer will result in restrictions on the Company’s ability to make capital distributions, including dividend payments and stock repurchases, and to pay discretionary bonuses to executive officers. At December 31, 2017, the Company’s and TBK Bank’s risk based capital exceeded the required capital conservation buffer.