Triumph Bancorp announces acquisitions, public offering

Triumph Bancorp, Inc., (TBK), Dallas, announced April 9 that it has signed definitive agreements to acquire First Bancorp of Durango, Inc., and Southern Colorado Corp. The company also announced the entry into an asset purchase agreement by Advance Business Capital d/b/a Triumph Business Capital to acquire the transportation factoring assets of Interstate Capital Corporation.

First Bancorp of Durango is a $646 million bank holding company. Its wholly-owned community banking subsidiary, The First National Bank of Durango, serves consumers and businesses from four branches in Durango, Colo., and one branch in Bayfield, Colo. Its wholly-owned subsidiary, Bank of New Mexico, serves consumers and businesses from three branches in Albuquerque, Gallup and Grants, N.M.

Southern Colorado Corp., is a bank holding company with $88 million in assets, that owns Citizens Bank of Pagosa Springs. The bank has two branches in Pagosa Springs, Colo.

“We are really excited about the acquisitions of The First National Bank of Durango, Bank of New Mexico and Citizens Bank of Pagosa Springs,” said Aaron P. Graft, vice chairman and chief executive officer of Triumph Bancorp. “As a result of these transactions, TBK Bank’s presence will be among the largest in the state of Colorado.”

“We are pleased to have in TBK a partner as committed to community banking as we are,” said Mark Daigle, president and chief executive officer of The First National Bank of Durango.

“We believe partnering with TBK Bank will increase our ability to provide value and resources to the people, businesses and communities we serve,” said Clemente Sanchez, chairman, president and chief executive officer of Bank of New Mexico.

Following the close of the transactions, The First National Bank of Durango, Bank of New Mexico and Citizens Bank of Pagosa Springs will be merged into TBK Bank, SSB, with the resulting institution operating under the TBK Bank brand name.

These transactions have been unanimously approved by the boards of directors of Triumph Bancorp, First Bancorp of Durango and Southern Colorado Corp., and are subject to customary closing conditions, including receipt of required regulatory approvals. The transactions are expected to close during the third quarter.

Triumph Bancorp was advised in this transaction by Wachtell, Lipton, Rosen & Katz as legal counsel and Stephens Inc., and Evercore as financial advisors.  Sullivan & Cromwell LLP acted as legal counsel and Hovde Group, LLC acted as financial adviser to First Bancorp of Durango and Southern Colorado Corp.

Interstate Capital is one of North America’s leading invoice factoring companies with offices located in El Paso, Texas and Santa Teresa, N.M. Since 1993, Interstate Capital has focused on small and medium-sized businesses.

“Adding Interstate Capital’s team members, processes and business network to Triumph Business Capital creates one of, if not the, strongest transportation factoring platform in the United States,” Graft said. “We are proud to be associated with trucking, and this transaction specifically furthers our role in meeting the working capital needs of the small business owners who keep America moving forward.”

“The entire ICC team is very excited about becoming a part of the Triumph organization,” said Cliff Eisenberg, the chief executive officer of Interstate Capital Corporation.

Upon close of the transaction, Interstate Capital will operate as Interstate Capital, a Triumph company. The staff of Interstate Capital will become employees of Triumph Business Capital immediately following the close of the acquisition.

Triumph Bancorp, Inc. also announced it has commenced an underwritten public offering of shares of its common stock with a targeted transaction size of $175 million. Triumph intends to grant the underwriters an option, exercisable in whole or in part for 30 days, to purchase additional shares of its common stock.

Stephens Inc., Keefe, Bruyette and Woods, A Stifel Company and Sandler O’Neill + Partners, L.P., are serving as joint book-running managers for the offering. Wells Fargo Securities, D.A. Davidson & Co., and Piper Jaffray & Co., are serving as co-managers for the offering.

Triumph intends to use a portion of the net proceeds of this offering to fund a portion of the consideration payable in the pending acquisitions of First Bancorp of Durango, Inc., Southern Colorado Corp. and Interstate Capital Corporation, as well as, for general corporate purposes.