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VOL. 127 | NO. 89 | Monday, May 07, 2012

Triumph Bank Raises $12 Million in Capital

By Andy Meek

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Memphis-based Triumph Bank has just completed a capital raise that’s bringing in slightly more than $12 million for the 6-year-old bank.

Just as important as the amount of money the bank raised is the reason why it did so: Triumph’s leadership wanted the cash, as opposed to needing it.

The intent of Triumph, which has enjoyed consistent profitability, is to double in size over the next five years. The plan for that growth includes hiring, boosting loans – and maybe the bank’s area footprint.

“We’ve been growing at a rate of about 20 percent a year,” said Triumph CEO Will Chase by way of explaining the capital raise, which closed April 30.

“It’s organic growth. The long and short of it – our board, we sat down and said we went from zero to $350 million in roughly five years, and let’s just do it again.”

How the bank will put that money to work includes hiring, which Triumph has already begun moving forward on. Chase said the bank has expanded its mortgage side, going from one person to four with the hopes of adding another soon.

Triumph Bank had a smaller profit in the first quarter than it did during the same period in 2011 – $382,000, down from $455,000 in Q1 2011, according to the latest financials from the bank.

However, Triumph set aside more in loan loss reserves to protect against future economic uncertainty.

The bank also saw a $20 million increase in deposits during the quarter. And in a Q1 note to shareholders, customers and friends of the bank, Triumph reported a “very large pipeline” of new loan business.

“We’ve been very blessed,” Chase said. “We have not had the asset quality issues that other people have experienced, which has given us more time to concentrate on getting new customers. We’ve been successful doing that so far, and we think we can continue the momentum.”

Chase said the bank would like to expand its brick-and-mortar presence. But he noted any future branch may not look like the branches the bank has today.

In a world of smartphone-based banking and bank websites that are optimized for mobile platforms, Chase is the kind of executive who doesn’t necessarily see the need for all new branches to have the same look they do now. That might mean fewer wide-open lobbies, for example, which have until now been built to serve lots of customers coming inside to do their transactions.

On a related note, about a month ago Triumph announced some updates to its technological capabilities. Among those offerings, the bank added a downloadable mobile app for iPhone, Blackberry and Android devices, in addition to many other Java-enabled phones.

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PROPERTY SALES 67 156 11,921
MORTGAGES 77 227 15,577
FORECLOSURE NOTICES 15 57 3,080
BUILDING PERMITS 222 606 28,832
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