Triumph Bancorp sets terms for $101 million IPO

Triumph Bancorp, which offers community banking, factoring and lending primarily in the Midwest, announced terms for its IPO on Monday. The Dallas, TX-based company plans to raise $101 million by offering 6.7 million shares at a price range of $14 to $16. At the midpoint of the proposed range, Triumph Bancorp would command a fully diluted market value of $250 million.

Triumph operates a network of 18 branches and one loan production office throughout Iowa and Illinois as well as two branches in Dallas. It also operates Triumph Capital Advisors, a registered investment advisor through which it conducts its asset management operations. The company's primary shareholders include management and directors (16% post-IPO stake) and oil magnate Trevor Rees-Jones (4%).

For the third quarter, Triumph expects to report net income of $10-$10.5 million, up from $3 million in the second quarter. The increase in net income was largely due to an $8 million after-tax gain on the sale of branch in Pewaukee, Wisconsin. Total loans held for investment were approximately $977 million.

The company's efficiency improved 8.5 percentage points to 70.6% during the six months ended June 30, 2014. Its return on average assets rose 20 bps to 1.0% and return on average equity increased 530 bps to 8.2%. At the end of the second quarter, it had total assets of $1.4 billion. 

Triumph Bancorp, which was founded in 2010 and booked $82 million in combined net interest and noninterest income for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol TBK. Sandler O'Neill, Evercore Partners and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of November 3, 2014.