Triumph Bancorp in Dallas is exiting the premium finance business.
The $5.4 billion-asset company said in a press release Monday that it transferred $98 million in loans tied to its Triumph Premium Finance unit to held-for-sale status during the first quarter.
Peoples Bancorp in Marietta, Ohio, agreed to buy the Kansas City, Mo., unit in a deal expected to close in the quarter. Peoples did not disclose the price it will pay.
The company began offering premium finance, where loans are made to cover the borrower’s cost of an insurance premium, in 2015.
Triumph also announced that it lost $4.5 million in the first quarter. It reported $20.3 million in credit losses during the quarter, with more than half tied to “significant deterioration” in the company’s macroeconomic forecast because of the COVID-19 pandemic.
Nonperforming assets made up 1.09% of total assets at March 31, an increase from 0.87% at the end of 2019.
