Triad Business Bank (OTC Pink – “TBBC”), July 30, 2025, Announces Unaudited Second Quarter 2025 Results

Overview

GREENSBORO, N.C.--(BUSINESS WIRE)-- For the three-month period ending June 30, 2025, Triad Business Bank (the “Bank”) reported net income of $216,000 compared to a loss of $611,000 for the same period a year ago. Net income totaled $0.03 per share in the second quarter of 2025 compared to a loss of $0.09 per share in the second quarter of 2024. For the six-month period ending June 30, 2025, the Bank reported a $1.1 million improvement in net income with a $415,000 profit in 2025 compared to a loss of $712,000 in the prior year period.

Ramsey Hamadi, Chief Executive Officer, commented, “The Bank’s second quarter core earnings improved $847,000 over the prior year period due primarily to an increase in the Bank’s net interest margin and lower operating expenses. The Bank’s net interest margin increased 25 basis points from 2.08% in the second quarter of 2024 to 2.33% in the second quarter of 2025 primarily due to proceeds of maturing below-market rate loans and investments being reinvested into higher yielding loans and a lower cost of funds. Net interest income increased $300,000 to $3.0 million in the second quarter of 2025 compared to the same period a year ago. The Bank’s noninterest expense in the second quarter of the current year was $471,000 less than the prior year period. The decline in noninterest expense was due to implementation of an expense reduction plan in 2024, increased deferred loan costs on greater loan production, and decreased FDIC insurance assessment expense. Looking forward, the Bank intends to maintain disciplined expense control practices while the Bank’s net interest margin is expected to further improve throughout 2025 and 2026. As low yielding loans and investments originated in 2020 through 2022 continue to mature at an accelerating pace, we anticipate reinvesting the proceeds in higher yielding loans.”

Income Statement Comparison

The Bank’s net income totaled $216,000 for the quarter ended June 30, 2025 compared to a net loss of $611,000 for the quarter ended June 30, 2024. Core operating results, a non-GAAP measurement which excludes the provision for credit losses and taxes, reflected core earnings of $237,000 for the second quarter of 2025 compared to a loss of $610,000 for the same quarter in the prior year.

Net interest income increased $300,000 to $3.0 million for the second quarter of 2025 from $2.7 million for the second quarter of 2024. The Bank’s net interest margin for the second quarter increased 25 basis points to 2.33% compared to the prior year quarter.

Interest income decreased $227,000, or 3%, to $6.8 million in the second quarter of 2025 compared to $7.0 million in the same quarter of 2024. The decline in interest income year over year was due to declines in market interest rates and declines in average investment securities and interest-earning cash balances, as well as forgone interest of $122,000 on a loan relationship placed in nonaccrual status during the second quarter of 2025. Average loans increased $16.8 million to $378.5 million at June 30, 2025. The weighted average yield on average loans decreased 10 basis points to 6.00% in the second quarter of 2025 compared to 6.10% in the second quarter of 2024. The weighted average rate on interest-bearing liabilities decreased 43 basis points to 4.08% in the second quarter of 2025 compared to 4.51% in the same quarter of 2024.

Noninterest income increased 74% to $180,000 in the second quarter of 2025 compared to $103,000 in the second quarter of 2024. In the prior year quarter, the Bank sold an investment in a SBIC and incurred a one-time loss of $136,000, while in the current year the Bank incurred a change in other miscellaneous income.

Noninterest expense decreased $471,000 in the second quarter of 2025 compared to the prior year quarter. Salaries and benefits expense decreased $196,000, or 9%, in the second quarter of 2025 compared to the second quarter of 2024 due to an increase in deferred loan costs on greater loan production and a reduction in personnel. The Bank had 56 employees at the end of June 2025 and June 2024, down from 61 employees at the end of March 2024. In connection with the Bank’s expense reduction initiative in the second quarter of 2024, there was a one-time severance expense of $87,000 in the prior year quarter. Other noninterest expenses decreased $199,000 for the second quarter of 2025 over the same period in 2024, primarily due to decreases in FDIC insurance assessment expense and director compensation expense.

Balance Sheet Comparison

Total assets increased $9.9 million to $531.3 million at June 30, 2025 from $521.4 million at June 30, 2024. Loans increased $24.5 million while securities decreased $11.9 million over the same period. Deposits increased $28.5 million year over year to $472.9 million. Other borrowings decreased $21.0 million to $9.0 million at June 30, 2025 from $30.0 million at June 30, 2024.

Shareholders’ equity increased $2.7 million year over year to $46.2 million at June 30, 2025. In the fourth quarter of 2024, the establishment of a $2.6 million reserve on a corporate bond negatively impacted shareholders’ equity. An additional $350,000 was added to the reserve for this bond in the June 2025 quarter. Accumulated other comprehensive income/loss (“AOCI”) declined by $5.6 million year over year to an unrealized loss of $11.5 million from an unrealized loss of $17.1 million at June 30, 2024. This change includes a $3.0 million in allowance for credit losses established on corporate bonds. 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 loan 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 June 30, 2025:

Capital and Capital Ratios

		Quarter Ended
		6/30/2025
		Amount			Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)		$	61,562		12.15	%
Tier 1 Capital (to risk-weighted assets)		$	57,626		11.37	%
Tier 1 Capital (to average assets)		$	57,626		10.76	%
Minimum To Be Well-Capitalized Under
Prompt Corrective Action Provisions
(dollars in thousands)
Total Capital (to risk-weighted assets)		$	51,000		10.00	%
Tier 1 Capital (to risk-weighted assets)		$	41,000		8.00	%
Tier 1 Capital (to average assets)		$	27,000		5.00	%

The Bank continues to be “well-capitalized” for regulatory purposes.

Loans

The Bank’s outstanding loans increased $24.5 million, or 7%, to $387.9 million at June 30, 2025 compared to $363.4 million at June 30, 2024. While not included in loans outstanding, the Bank also had unfunded loan commitments of $138.0 million, bringing total loans outstanding and unfunded commitments to $525.9 million at June 30, 2025. For internal monitoring purposes, the Bank considers owner-occupied real estate loans to be part of commercial and industrial (“C&I”) loans. As of June 30, 2025, approximately 47% of the Bank’s outstanding loan portfolio was composed of C&I loans:

Loan Diversification

		Quarter Ended			Percentage of
Loan Category		6/30/2025			Loan Portfolio
Other Construction & Land Development		$	65,824,234
Nonowner-occupied Commercial Real Estate			136,888,336
Total Commercial Real Estate			202,712,570		52%
Owner-occupied Real Estate			98,622,986
C&I			83,799,332
Total C&I			182,422,318		47%
Other Revolving Loans			2,794,243		1%
Total		$	387,929,131

Credit Risk and Allowance for Credit Losses

The Bank had $2.5 million in nonaccrual loans relating to one credit relationship at June 30, 2025 compared to no nonaccrual loans at June 30, 2024. During the second quarter of 2025, there was a reversal of provision for credit losses on loans of $273,000 and on unfunded commitments of $56,000 compared to a net provision of less than $1,000 during the quarter ended June 30, 2024. The reversals in the second quarter of 2025 were due to improved loan quality metrics resulting in a decline in the credit loss rate. There was a $350,000 provision for credit losses on a corporate bond during the second quarter of 2025.

The allowance for credit losses on loans was $3.6 million at June 30, 2025 compared to $3.7 million at June 30, 2024, or 0.92% and 1.02% of outstanding loans, respectively. The allowance for credit losses on unfunded loan commitments, recorded as a liability on the balance sheet, was $373,000, or 0.27% of unfunded commitments at June 30, 2025, compared to $366,000, or 0.29%, at June 30, 2024. The allowance for credit losses on available-for-sale securities was $3.3 million at June 30, 2025 compared to $300,000 at June 30, 2024.

Deferred Tax Asset and AOCI (Non-GAAP Measures)

The Bank’s GAAP tangible book value per share was $5.73 at June 30, 2025. 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 $7.55 at June 30, 2025.

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 $3.2 million. 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 fair value, excluding any credit impairment, 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 June 30, 2025, the Bank had an aggregate AOCI loss of $11.5 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. As a non-GAAP measure, the Bank eliminates its current AOCI loss to reflect an adjusted tangible book value.

Outlook

Although there could be some compression in the net interest margin in the near term if the Federal Reserve makes additional reductions in the federal funds target rate, we expect the Bank’s net interest margin to steadily rise over the next year and a half as lower yielding loans and investments mature and are replaced by those with higher yields.

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 Bank
Balance Sheet (Unaudited)		June 30, 2025				June 30, 2024					$ Change				% Change
Assets
Cash & Due from Banks		$	20,518,736			$	21,551,174				$	(1,032,438	)		-5	%
Securities			118,340,187				130,253,022					(11,912,835	)		-9	%
Federal Funds Sold			-				-					-			0	%
Loans			387,929,131				363,409,566					24,519,565			7	%
Allowance for Credit Losses ("ACL")			(3,563,077	)			(3,708,405	)				145,328			4	%
Loans, Net			384,366,054				359,701,161					24,664,893			7	%
Other Assets			8,101,708				9,915,475					(1,813,767	)		-18	%
Total Assets		$	531,326,685			$	521,420,832				$	9,905,853			2	%
Liabilities
Demand Deposits		$	103,045,441			$	109,414,180				$	(6,368,739	)		-6	%
ICS Reciprocal - Checking			1,187,591				4,089					1,183,502			N/M
Commercial Operating Accounts			104,233,032				109,418,269					(5,185,237	)		-5	%
Interest-bearing NOW			27,105,045				19,161,806					7,943,239			41	%
Core MMA & Savings			105,083,693				93,142,481					11,941,212			13	%
ICS Reciprocal - MMA			40,946,981				32,959,556					7,987,425			24	%
Total MMA & Savings			146,030,674				126,102,037					19,928,637			16	%
Core Time Deposits			29,853,816				26,866,489					2,987,327			11	%
CDARS - Reciprocal			22,900,997				18,975,442					3,925,555			21	%
Brokered CDs			142,795,132				143,942,948					(1,147,816	)		-1	%
Total Time Deposits			195,549,945				189,784,879					5,765,066			3	%
Total Deposits			472,918,696				444,466,991					28,451,705			6	%
Other Borrowings			9,000,000				30,000,000					(21,000,000	)		-70	%
Federal Funds Purchased			-				-					-			0	%
ACL on Unfunded Commitments			372,645				366,167					6,478			2	%
Other Liabilities			2,884,549				3,174,047					(289,498	)		-9	%
Total Liabilities			485,175,890				478,007,205					7,168,685			1	%
Shareholders' Equity
Common Stock			73,288,274				72,997,463					290,811			0	%
Accumulated Deficit			(15,661,838	)			(12,491,018	)				(3,170,820	)		-25	%
Accumulated Other Comprehensive Loss			(11,475,641	)			(17,092,818	)				5,617,177			33	%
Total Shareholders' Equity			46,150,795				43,413,627					2,737,168			6	%
Total Liabilities & Shareholders' Equity		$	531,326,685			$	521,420,832				$	9,905,853			2	%
Shares Outstanding			8,054,528				7,985,194					69,334			1	%
Tangible Book Value per Share		$	5.73			$	5.44				$	0.29			5	%

Triad Business Bank
Income Statement (Unaudited)		For Three Months Ended			For Three Months Ended
		June 30, 2025			June 30, 2024					$ Change				% Change
Interest Income
Interest & Fees on Loans		$	5,659,178		$	5,483,641				$	175,537			3	%
Interest & Dividend Income on Securities			943,570			1,087,361					(143,791	)		-13	%
Interest Income on Balances Due from Banks			166,584			369,258					(202,674	)		-55	%
Other Interest Income			29,364			85,328					(55,964	)		-66	%
Total Interest Income			6,798,696			7,025,588					(226,892	)		-3	%
Interest Expense
Interest on Checking Deposits			216,596			216,178					418			0	%
Interest on Savings & MMA Deposits			1,189,823			1,427,510					(237,687	)		-17	%
Interest on Time Deposits			2,210,085			2,501,019					(290,934	)		-12	%
Interest on Federal Funds Purchased			-			155					(155	)		-100	%
Interest on Borrowings			182,319			122,057					60,262			49	%
Other Interest Expense			6,901			65,692					(58,791	)		-89	%
Total Interest Expense			3,805,724			4,332,611					(526,887	)		-12	%
Net Interest Income			2,992,972			2,692,977					299,995			11	%
Provision for Credit Losses			20,714			291					20,423			N/M
Net Interest Income After Provision for CL			2,972,258			2,692,686					279,572			10	%
Total Noninterest Income			179,930			103,409					76,521			74	%
Noninterest Expense
Salaries & Benefits			1,894,375			2,089,993					(195,618	)		-9	%
Severance - One-time Expense			-			87,153					(87,153	)		-100	%
Premises & Equipment			142,565			131,464					11,101			8	%
Total Other Noninterest Expense			899,188			1,098,106					(198,918	)		-18	%
Total Noninterest Expense			2,936,128			3,406,716					(470,588	)		-14	%
Income (Loss) Before Income Tax			216,060			(610,621	)				826,681			135	%
Income Tax			-			-					-			0	%
Net Income (Loss)		$	216,060		$	(610,621	)			$	826,681			135	%
Net Income (Loss) per Share
Basic		$	0.03		$	(0.09	)			$	0.12			133	%
Diluted		$	0.03		$	(0.09	)			$	0.12			133	%
Weighted Average Shares Outstanding
Basic			8,031,902			6,800,657					1,231,245			18	%
Diluted			8,128,907			6,800,657					1,328,250			20	%
Pre-provision, Pre-tax Income (Loss)		$	236,774		$	(610,330	)			$	847,104			139	%

Triad Business Bank
Key Ratios & Other Information (Unaudited)
					Quarter Ended									Quarter Ended
					6/30/2025									6/30/2024
					Interest									Interest
					Income/			Yield/						Income/			Yield/
		Balance			Expense			Rate			Balance			Expense			Rate
Yield on Average Loans		$	378,549,908		$	5,659,178		6.00	%		$	361,771,395		$	5,483,641		6.10	%
Yield on Average Investment Securities		$	119,871,214		$	943,570		3.16	%		$	130,130,898		$	1,087,361		3.36	%
Yield on Average Interest-earning Assets		$	514,560,647		$	6,798,696		5.30	%		$	519,890,371		$	7,025,588		5.44	%
Cost of Average Interest-bearing Liabilities		$	374,470,069		$	3,805,724		4.08	%		$	386,698,922		$	4,332,611		4.51	%
Net Interest Margin
Interest Income					$	6,798,696								$	7,025,588
Interest Expense						3,805,724									4,332,611
Average Earnings Assets		$	514,560,647								$	519,890,371
Net Interest Income & Net Interest Margin					$	2,992,972		2.33	%					$	2,692,977		2.08	%
Loan to Asset Ratio
Loan Balance		$	387,929,131								$	363,409,566
Total Assets			531,326,685					73.01	%			521,420,832					69.70	%
Leverage Ratio
Tier 1 Capital		$	57,626,436								$	60,506,445
Average Total Assets			535,330,388					10.76	%			547,797,162					11.05	%
Unfunded Commitments to Extend Credit		$	138,015,672								$	127,353,161
Standby Letters of Credit			436,358									186,252

Triad Business Bank
Balance Sheet (Unaudited)		June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Assets
Cash & Due from Banks		$	20,518,736			$	20,220,053			$	23,947,020			$	30,648,321			$	21,551,174
Securities			118,340,187				121,514,871				122,762,837				128,716,405				130,253,022
Federal Funds Sold			-				-				-				-				-
Loans			387,929,131				374,401,277				373,673,725				371,611,690				363,409,566
Allowance for Credit Losses ("ACL")			(3,563,077	)			(3,835,717	)			(4,085,896	)			(4,559,992	)			(3,708,405	)
Loans, Net			384,366,054				370,565,560				369,587,829				367,051,698				359,701,161
Other Assets			8,101,708				8,904,916				8,862,991				8,760,394				9,915,475
Total Assets		$	531,326,685			$	521,205,400			$	525,160,677			$	535,176,818			$	521,420,832
Liabilities
Demand Deposits		$	103,045,441			$	96,127,782			$	92,613,735			$	123,144,094			$	109,414,180
ICS Reciprocal - Checking			1,187,591				1,076,893				2,713,755				4,692,723				4,089
Commercial Operating Accounts			104,233,032				97,204,675				95,327,490				127,836,817				109,418,269
Interest-bearing NOW			27,105,045				22,114,026				22,378,016				19,405,621				19,161,806
Core MMA & Savings			105,083,693				101,889,815				88,468,843				87,007,973				93,142,481
ICS Reciprocal - MMA			40,946,981				38,773,606				65,089,274				49,159,929				32,959,556
Total MMA & Savings			146,030,674				140,663,421				153,558,117				136,167,902				126,102,037
Core Time Deposits			29,853,816				30,729,573				29,332,254				29,305,651				26,866,489
CDARS - Reciprocal			22,900,997				19,588,579				19,709,000				19,233,313				18,975,442
Brokered CDs			142,795,132				143,361,538				135,142,064				145,377,533				143,942,948
Total Time Deposits			195,549,945				193,679,690				184,183,318				193,916,497				189,784,879
Total Deposits			472,918,696				453,661,812				455,446,941				477,326,837				444,466,991
Other Borrowings			9,000,000				19,000,000				24,000,000				9,000,000				30,000,000
Federal Funds Purchased			-				-				-				-				-
ACL on Unfunded Commitments			372,645				429,291				458,381				498,632				366,167
Other Liabilities			2,884,549				2,952,028				3,031,561				3,336,685				3,174,047
Total Liabilities			485,175,890				476,043,131				482,936,883				490,162,154				478,007,205
Shareholders' Equity
Common Stock			73,288,274				73,260,400				73,172,267				73,086,971				72,997,463
Accumulated Deficit			(15,661,838	)			(15,877,898	)			(16,076,619	)			(13,239,432	)			(12,491,018	)
Accumulated Other Comprehensive Loss			(11,475,641	)			(12,220,233	)			(14,871,854	)			(14,832,875	)			(17,092,818	)
Total Shareholders' Equity			46,150,795				45,162,269				42,223,794				45,014,664				43,413,627
Total Liabilities & Shareholders' Equity		$	531,326,685			$	521,205,400			$	525,160,677			$	535,176,818			$	521,420,832
Shares Outstanding			8,054,528				7,993,969				7,993,969				7,989,860				7,985,194
Tangible Book Value per Share		$	5.73			$	5.65			$	5.28			$	5.63			$	5.44

Triad Business Bank
Income Statement (Unaudited)		For Three Months Ended			For Three Months Ended				For Three Months Ended				For Three Months Ended				For Three Months Ended
		June 30, 2025			March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Interest Income
Interest & Fees on Loans		$	5,659,178		$	5,603,820			$	5,673,515			$	5,727,249			$	5,483,641
Interest & Dividend Income on Securities			943,570			981,564				1,011,942				1,082,175				1,087,361
Interest Income on Balances Due from Banks			166,584			152,968				222,737				300,897				369,258
Other Interest Income			29,364			24,920				51,342				80,740				85,328
Total Interest Income			6,798,696			6,763,272				6,959,536				7,191,061				7,025,588
Interest Expense
Interest on Checking Deposits			216,596			204,844				202,209				206,359				216,178
Interest on Savings & MMA Deposits			1,189,823			1,178,988				1,222,203				1,317,088				1,427,510
Interest on Time Deposits			2,210,085			2,256,103				2,379,797				2,356,834				2,501,019
Interest on Federal Funds Purchased			-			-				-				-				155
Interest on Borrowings			182,319			232,547				163,182				298,956				122,057
Other Interest Expense			6,901			6,821				24,831				65,224				65,692
Total Interest Expense			3,805,724			3,879,303				3,992,222				4,244,461				4,332,611
Net Interest Income			2,992,972			2,883,969				2,967,314				2,946,600				2,692,977
Provision for (Reversal of) Credit Losses			20,714			(164,869	)			3,136,709				984,052				291
Net Interest Income After Provision for CL			2,972,258			3,048,838				(169,395	)			1,962,548				2,692,686
Total Noninterest Income			179,930			241,614				333,915				325,482				103,409
Noninterest Expense
Salaries & Benefits			1,894,375			1,920,999				1,880,888				1,938,269				2,089,993
Severance - One-time Expense			-			-				-				-				87,153
Premises & Equipment			142,565			135,548				130,108				124,197				131,464
Total Other Noninterest Expense			899,188			1,035,184				990,711				973,977				1,098,106
Total Noninterest Expense			2,936,128			3,091,731				3,001,707				3,036,443				3,406,716
Income (Loss) Before Income Tax			216,060			198,721				(2,837,187	)			(748,413	)			(610,621	)
Income Tax			-			-				-				-				-
Net Income (Loss)		$	216,060		$	198,721			$	(2,837,187	)		$	(748,413	)		$	(610,621	)
Net Income (Loss) per Share
Basic		$	0.03		$	0.02			$	(0.35	)		$	(0.09	)		$	(0.09	)
Diluted		$	0.03		$	0.02			$	(0.35	)		$	(0.09	)		$	(0.09	)
Weighted Average Shares Outstanding
Basic			8,031,902			7,993,969				7,993,728				7,988,720				6,800,657
Diluted			8,128,907			8,104,884				7,993,728				7,988,720				6,800,657
Pre-provision, Pre-tax Income (Loss)		$	236,774		$	33,852			$	299,522			$	235,639			$	(610,330	)

Triad Business Bank
Capital and Capital Ratios (Unaudited)
		Quarter Ended						Quarter Ended						Quarter Ended						Quarter Ended						Quarter Ended
		6/30/2025						3/31/2025						12/31/2024						9/30/2024						6/30/2024
		Amount			Ratio			Amount			Ratio			Amount			Ratio			Amount			Ratio			Amount			Ratio
Actual
(dollars in thousands)
Total Capital (to risk-weighted assets)		$	61,562		12.15	%		$	61,647		12.34	%		$	61,640		12.48	%		$	64,907		13.05	%		$	64,581		13.26	%
Tier 1 Capital (to risk-weighted assets)		$	57,626		11.37	%		$	57,382		11.49	%		$	57,096		11.56	%		$	59,848		12.03	%		$	60,507		12.43	%
Tier 1 Capital (to average assets)		$	57,626		10.76	%		$	57,382		10.67	%		$	57,096		10.52	%		$	59,848		10.91	%		$	60,507		11.05	%
Minimum To Be Well-Capitalized Under
Prompt Corrective Action Provisions
(dollars in thousands)
Total Capital (to risk-weighted assets)		$	51,000		10.00	%		$	50,000		10.00	%		$	49,000		10.00	%		$	50,000		10.00	%		$	49,000		10.00	%
Tier 1 Capital (to risk-weighted assets)		$	41,000		8.00	%		$	40,000		8.00	%		$	40,000		8.00	%		$	40,000		8.00	%		$	39,000		8.00	%
Tier 1 Capital (to average assets)		$	27,000		5.00	%		$	27,000		5.00	%		$	27,000		5.00	%		$	27,000		5.00	%		$	27,000		5.00	%

Triad Business Bank
Non-GAAP Measures (Unaudited)
Tangible Book Value
		Actual 6/30/2025			Non-GAAP 6/30/2025
Total Shareholders' Equity		$	46,150,795		$	46,150,795
Eliminate Deferred Tax Asset Valuation Allowance			-			3,206,060
Eliminate Accumulated Other Comprehensive Loss			-			11,475,641
Adjusted Shareholders' Equity		$	46,150,795		$	60,832,496
Shares Outstanding			8,054,528			8,054,528
Tangible Book Value per Share		$	5.73		$	7.55
Effect of Non-GAAP Measures on Tangible Book Value					$	1.82
During the start-up phase of the Bank, a valuation allowance was created which fully impairs the deferred tax asset. When sufficient, verifiable evidence exists (generally, sustained profitability) demonstrating that the deferred tax asset will more likely than not be realized, the valuation allowance will be eliminated. This Non-GAAP measure is shown to disclose the effect on tangible book value per share at June 30, 2025 had there 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 value will return to face value at maturity, assuming the underlying securities are held to maturity and there is no credit loss, accumulated other comprehensive loss has been eliminated in this Non-GAAP measure.
Pre-provision Income (Loss)
		Qtr Ended 6/30/2025			Qtr Ended 6/30/2024
Income (Loss) Before Income Tax		$	216,060		$	(610,621	)
Provision for Credit Losses			20,714			291
Pre-provision Income (Loss) Before Income Tax (Non-GAAP)		$	236,774		$	(610,330	)
The pre-provision income (loss) is a measure of operating performance exclusive of potential losses from lending.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250730006725/en/

Ramsey Hamadi

rhamadi@triadbusinessbank.com

Source: Triad Business Bank