DALLAS, April 20, 2022 (GLOBE NEWSWIRE) -- Triumph Bancorp, Inc. (NASDAQ:TBK) ("Triumph" or the "Company") today announced earnings and operating results for the first quarter of 2022.

As part of how we measure our results, we use certain non-GAAP financial measures to ascertain performance. These non-GAAP financial measures are reconciled in the section labeled "Metrics and non-GAAP financial reconciliation" at the end of this press release.

2022 First Quarter Highlights

For the first quarter of 2022, net income to common shareholders was $23.5 million, and diluted earnings per share were $0.93.
Net interest income was $100.1 million.
Non-interest income was $11.1 million.
Non-interest expense was $78.6 million.
Net interest margin was 7.68%. Yield on loans and the average cost of our total deposits were 8.60% and 0.14%, respectively.
Credit loss expense for the quarter ended March 31, 2022 was $0.5 million.
Net charge-offs were $1.5 million, or 0.03% of average loans, for the quarter.
The total dollar value of invoices purchased by Triumph Business Capital was $4.042 billion with an average invoice size of $2,520. The transportation average invoice size for the quarter was $2,401.
TriumphPay processed 4.0 million invoices paying carriers a total of $5.701 billion.
We repurchased 14,810 shares into treasury stock under our stock repurchase program at an average price of $88.81, for a total of $1.3 million, under the $50.0 million stock repurchase program authorized by our board of directors on February 7, 2022.
We classified certain non-transportation factored receivables, and their related customer reserves, (the "Factored Receivable Disposal Group") as held for sale on the unaudited March 31, 2022 Consolidated Balance Sheet. The Factored Receivable Disposal Group was classified as held for sale at cost with no impact to earnings except for the reversal of the allowance for credit loss associated with the factored receivables. As a result, factored receivables totaling $80.8 million and customer reserves totaling $10.4 million were included in assets held for sale and deposits held for sale, respectively, at March 31, 2022.
We classified the gross assets and liabilities of 15 branches primarily located in rural eastern Colorado and western Kansas (the "Branch Disposal Group") as held for sale on the unaudited March 31, 2022 Consolidated Balance Sheet. The Branch Disposal Group was classified as held for sale at cost with no impact to earnings except for the reversal of the allowance for credit loss associated with the branch loans. Loans totaling $159.2 million and deposits totaling $367.3 million were included in assets held for sale and deposits held for sale, respectively, at March 31, 2022.

Balance Sheet

Total loans held for investment decreased $143.5 million, or 2.9%, during the first quarter to $4.724 billion at March 31, 2022. Average loans held for investment for the quarter decreased $38.5 million, or 0.8%, to $4.805 billion.

Total deposits were $4.332 billion at March 31, 2022, a decrease of $314.9 million, or 6.8%, in the first quarter of 2022. Non-interest-bearing deposits accounted for 43% of total deposits and non-time deposits accounted for 88% of total deposits at March 31, 2022.

The decline in loans held for investment and deposits was driven by the classification of a portion of such assets and deposits to held for sale at March 31, 2022 as previously discussed.

Asset Quality and Allowance for Credit Loss

Our nonperforming assets ratio at March 31, 2022 was 0.87%. Approximately 2 basis points of this ratio at March 31, 2022 consisted of $1.2 million of the acquired Over-Formula Advance portfolio which represents the portion that is not covered by CVLG's indemnification. An additional 32 basis points of this ratio at March 31, 2022 consisted of $19.4 million of the Misdirected Payments. Over-Formula Advances and Misdirected Payments are discussed in greater detail below.

Our past-due loan ratio at March 31, 2022 was 2.73%. Approximately 20 basis points of this ratio at March 31, 2022 consisted of $9.6 million of past due factored receivables related to the Over-Formula Advance portfolio. An additional 41 basis points of this ratio at March 31, 2022 consisted of the $19.4 million of Misdirected Payments, as discussed below.

Our ACL as a percentage of loans held for investment increased 1 basis point during the quarter to 0.88% at March 31, 2022.

Items related to our July 2020 acquisition of TFS

As disclosed on our SEC Forms 8-K filed on July 8, 2020 and September 23, 2020, we acquired the transportation factoring assets of TFS, a wholly owned subsidiary of Covenant Logistics Group, Inc. ("CVLG"), and subsequently amended the terms of that transaction. There were no material developments related to that transaction that impacted our operating results for the three months ended March 31, 2022.

At March 31, 2022, the carrying value of the acquired over-formula advances was $9.6 million, the total reserve on acquired over-formula advances was $9.6 million and the balance of our indemnification asset, the value of the payment that would be due to us from CVLG in the event that these over-advances are charged off, was $4.6 million.

As of March 31, 2022 we carried a separate $19.4 million receivable (the "Misdirected Payments") payable by the United States Postal Service ("USPS") arising from accounts factored to the largest over-formula advance carrier. This amount is separate from the acquired Over-Formula Advances. The amounts represented by this receivable were paid by the USPS directly to such customer in contravention of notices of assignment delivered to, and previously honored by, the USPS, which amount was then not remitted back to us by such customer as required. The USPS disputes their obligation to make such payment, citing purported deficiencies in the notices delivered to them. We have commenced litigation in the United States Court of Federal Claims against the USPS seeking a ruling that the USPS was obligated to make the payments represented by this receivable directly to us. Based on our legal analysis and discussions with our counsel advising us on this matter, we continue to believe it is probable that we will prevail in such action and that the USPS will have the capacity to make payment on such receivable. Consequently, we have not reserved for such balance as of March 31, 2022. The full amount of such receivable is reflected in non-performing and past due factored receivables as of March 31, 2022 in accordance with our policy. As of March 31, 2022, the entire $19.4 million Misdirected Payments amount was greater than 90 days past due.

Conference Call Information

Aaron P. Graft, Vice Chairman and CEO and Brad Voss, CFO will review the financial results in a conference call for investors and analysts beginning at 7:00 a.m. Central Time on Thursday, April 21, 2022.

To participate in the live conference call, please dial 1-844-200-6205 (International: +1-929-526-1599) and access code

026223. A simultaneous audio-only webcast may be accessed via the Company's website at www.triumphbancorp.com through the Investor Relations, News & Events, Webcasts and Presentations links, or through a direct link here at: https://services.choruscall.com/mediaframe/webcast.html?webcastid=L79lY4Dy. An archive of this conference call will subsequently be available at this same location on the Company's website.

About Triumph

Triumph Bancorp, Inc. (NASDAQ:TBK) is a financial holding company headquartered in Dallas, Texas, offering a diversified line of payments, factoring, and banking services. www.triumphbancorp.com

Forward-Looking Statements

This press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward-looking statements by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will," "should," "seeks," "likely," "intends," "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; the impact of COVID-19 on our business, including the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on the United States economy (including, without limitation, the CARES Act), and the resulting effect of all of such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; changes in management personnel; interest rate risk; concentration of our products and services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; risks related to the integration of acquired businesses, including our acquisition of HubTran Inc. and developments related to our acquisition of Transport Financial Solutions and the related over-formula advances, and any future acquisitions; our ability to successfully identify and address the risks associated with our possible future acquisitions, and the risks that our prior and possible future acquisitions make it more difficult for investors to evaluate our business, financial condition and results of operations, and impairs our ability to accurately forecast our future performance; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of FDIC, insurance and other coverages; failure to receive regulatory approval for future acquisitions; and increases in our capital requirements.

While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward-looking statement disclosure contained in Triumph's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 14, 2022.

Non-GAAP Financial Measures

This press release includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided at the end of this press release.

The following table sets forth key metrics used by Triumph to monitor our operations. Footnotes in this table can be found in our definitions of non-GAAP financial measures at the end of this document.

	As of and for the Three Months Ended
(Dollars in thousands)	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Financial Highlights:
Total assets	$	6,076,434		$	5,956,250		$	6,024,535		$	6,015,877		$	6,099,628
Loans held for investment	$	4,724,078		$	4,867,572		$	4,782,730		$	4,831,215		$	5,084,512
Deposits	$	4,331,786		$	4,646,679		$	4,822,575		$	4,725,450		$	4,789,665
Net income available to common stockholders	$	23,528		$	25,839		$	23,627		$	27,180		$	33,122

Performance Ratios - Annualized:
Return on average assets		1.69	%		1.77	%		1.61	%		1.84	%		2.29	%
Return on average total equity		11.20	%		12.41	%		11.85	%		14.27	%		18.42	%
Return on average common equity		11.41	%		12.71	%		12.13	%		14.70	%		19.14	%
Return on average tangible common equity⁽¹⁾		17.02	%		19.41	%		19.21	%		20.92	%		26.19	%
Yield on loans⁽²⁾		8.60	%		8.68	%		7.92	%		7.77	%		7.24	%
Cost of interest bearing deposits		0.23	%		0.27	%		0.27	%		0.31	%		0.41	%
Cost of total deposits		0.14	%		0.16	%		0.16	%		0.20	%		0.28	%
Cost of total funds		0.28	%		0.29	%		0.38	%		0.34	%		0.42	%
Net interest margin⁽²⁾		7.68	%		7.66	%		6.69	%		6.47	%		6.06	%
Net non-interest expense to average assets		4.68	%		4.56	%		4.00	%		3.75	%		3.14	%
Adjusted net non-interest expense to average assets⁽¹⁾		4.68	%		4.56	%		4.00	%		3.55	%		3.14	%
Efficiency ratio		70.65	%		70.16	%		70.13	%		67.96	%		62.57	%
Adjusted efficiency ratio⁽¹⁾		70.65	%		70.16	%		70.13	%		65.09	%		62.57	%

Asset Quality:⁽³⁾
Past due to total loans		2.73	%		2.86	%		2.31	%		2.28	%		1.96	%
Non-performing loans to total loans		0.94	%		0.95	%		0.90	%		1.06	%		1.17	%
Non-performing assets to total assets		0.87	%		0.92	%		0.86	%		0.97	%		1.15	%
ACL to non-performing loans		93.62	%		91.20	%		95.75	%		88.92	%		80.87	%
ACL to total loans		0.88	%		0.87	%		0.86	%		0.95	%		0.94	%
Net charge-offs to average loans		0.03	%		—	%		0.08	%		0.01	%		0.85	%

Capital:
Tier 1 capital to average assets⁽⁴⁾		11.82	%		11.11	%		10.43	%		9.73	%		10.89	%
Tier 1 capital to risk-weighted assets⁽⁴⁾		11.96	%		11.51	%		11.06	%		10.33	%		11.28	%
Common equity tier 1 capital to risk-weighted assets⁽⁴⁾		10.40	%		9.94	%		9.45	%		8.74	%		9.72	%
Total capital to risk-weighted assets		14.53	%		14.10	%		13.69	%		12.65	%		13.58	%
Total equity to total assets		14.59	%		14.42	%		13.62	%		13.17	%		12.53	%
Tangible common stockholders' equity to tangible assets⁽¹⁾		9.86	%		9.46	%		8.63	%		8.04	%		8.98	%

Per Share Amounts:
Book value per share	$	33.45		$	32.35		$	30.87		$	29.76		$	28.90
Tangible book value per share⁽¹⁾	$	22.75		$	21.34		$	19.73		$	18.35		$	21.34
Basic earnings per common share	$	0.95		$	1.04		$	0.95		$	1.10		$	1.34
Diluted earnings per common share	$	0.93		$	1.02		$	0.94		$	1.08		$	1.32
Adjusted diluted earnings per common share⁽¹⁾	$	0.93		$	1.02		$	0.94		$	1.17		$	1.32
Shares outstanding end of period		25,161,690			25,158,879			25,123,342			25,109,703			24,882,929

Unaudited consolidated balance sheet as of:

(Dollars in thousands)	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
ASSETS
Total cash and cash equivalents	$	413,704		$	383,178		$	532,764		$	444,439		$	380,811
Securities - available for sale		191,440			182,426			164,816			193,627			205,330
Securities - held to maturity, net		4,404			4,947			5,488			5,658			5,828
Equity securities		5,085			5,504			5,623			5,854			5,826
Loans held for sale		607			7,330			26,437			31,136			22,663
Loans held for investment		4,724,078			4,867,572			4,782,730			4,831,215			5,084,512
Allowance for credit losses		(41,553	)		(42,213	)		(41,017	)		(45,694	)		(48,024	)
Loans, net		4,682,525			4,825,359			4,741,713			4,785,521			5,036,488
Assets held for sale		260,085			—			—			—			—
FHLB and other restricted stock		12,196			10,146			4,901			8,096			9,807
Premises and equipment, net		91,725			105,729			104,311			106,720			105,390
Other real estate owned ("OREO"), net		383			524			893			1,013			1,421
Goodwill and intangible assets, net		269,119			276,856			280,055			286,567			188,006
Bank-owned life insurance		41,141			40,993			41,540			41,912			41,805
Deferred tax asset, net		10,174			10,023			—			—			1,260
Indemnification asset		4,582			4,786			4,786			5,246			5,246
Other assets		89,264			98,449			111,208			100,088			89,747
Total assets	$	6,076,434		$	5,956,250		$	6,024,535		$	6,015,877		$	6,099,628
LIABILITIES
Non-interest bearing deposits	$	1,859,376		$	1,925,370		$	2,020,984		$	1,803,552		$	1,637,653
Interest bearing deposits		2,472,410			2,721,309			2,801,591			2,921,898			3,152,012
Total deposits		4,331,786			4,646,679			4,822,575			4,725,450			4,789,665
Deposits held for sale		377,698			—			—			—			—
Customer repurchase agreements		2,868			2,103			11,990			9,243			2,668
Federal Home Loan Bank advances		230,000			180,000			30,000			130,000			180,000
Payment Protection Program Liquidity Facility		—			27,144			97,554			139,673			158,796
Subordinated notes		107,169			106,957			106,755			87,620			87,564
Junior subordinated debentures		40,737			40,602			40,467			40,333			40,201
Deferred tax liability, net		—			—			982			3,333			—
Other liabilities		99,511			93,901			93,538			87,837			76,730
Total liabilities		5,189,769			5,097,386			5,203,861			5,223,489			5,335,624
EQUITY
Preferred Stock		45,000			45,000			45,000			45,000			45,000
Common stock		283			283			282			282			280
Additional paid-in-capital		516,551			510,939			499,282			494,224			490,699
Treasury stock, at cost		(106,105	)		(104,743	)		(104,600	)		(104,486	)		(103,059	)
Retained earnings		422,879			399,351			373,512			349,885			322,705
Accumulated other comprehensive income (loss)		8,057			8,034			7,198			7,483			8,379
Total stockholders' equity		886,665			858,864			820,674			792,388			764,004
Total liabilities and equity	$	6,076,434		$	5,956,250		$	6,024,535		$	6,015,877		$	6,099,628

Unaudited consolidated statement of income:

	For the Three Months Ended
(Dollars in thousands)	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Interest income:
Loans, including fees	$	40,847		$	43,979		$	44,882		$	45,988		$	48,706
Factored receivables, including fees		61,206			62,196			50,516			47,328			37,795
Securities		1,178			1,438			1,126			1,187			1,650
FHLB and other restricted stock		76			25			28			27			76
Cash deposits		128			141			183			158			126
Total interest income		103,435			107,779			96,735			94,688			88,353
Interest expense:
Deposits		1,561			1,907			1,948			2,470			3,372
Subordinated notes		1,299			1,297			2,449			1,350			1,349
Junior subordinated debentures		454			444			443			446			442
Other borrowings		42			74			124			140			170
Total interest expense		3,356			3,722			4,964			4,406			5,333
Net interest income		100,079			104,057			91,771			90,282			83,020
Credit loss expense (benefit)		501			2,008			(1,187	)		(1,806	)		(7,845	)
Net interest income after credit loss expense (benefit)		99,578			102,049			92,958			92,088			90,865
Non-interest income:
Service charges on deposits		1,963			2,050			2,030			1,857			1,787
Card income		2,011			2,470			2,144			2,225			1,972
Net OREO gains (losses) and valuation adjustments		(132	)		29			(9	)		(287	)		(80	)
Net gains (losses) on sale of securities		—			—			4			1			—
Fee income		5,703			5,711			5,198			4,470			2,249
Insurance commissions		1,672			1,138			1,231			1,272			1,486
Other		(96	)		2,861			1,457			4,358			6,877
Total non-interest income		11,121			14,259			12,055			13,896			14,291
Non-interest expense:
Salaries and employee benefits		46,284			52,544			43,769			41,658			35,980
Occupancy, furniture and equipment		6,436			6,194			6,388			6,112			5,779
FDIC insurance and other regulatory assessments		411			288			353			500			977
Professional fees		3,659			2,633			2,362			5,052			2,545
Amortization of intangible assets		3,108			3,199			3,274			2,428			1,975
Advertising and promotion		1,202			1,640			1,403			1,241			890
Communications and technology		9,112			7,844			7,090			6,028			5,900
Other		8,352			8,662			8,174			7,779			6,846
Total non-interest expense		78,564			83,004			72,813			70,798			60,892
Net income before income tax		32,135			33,304			32,200			35,186			44,264
Income tax expense		7,806			6,664			7,771			7,204			10,341
Net income	$	24,329		$	26,640		$	24,429		$	27,982		$	33,923
Dividends on preferred stock		(801	)		(801	)		(802	)		(802	)		(801	)
Net income available to common stockholders	$	23,528		$	25,839		$	23,627		$	27,180		$	33,122

Earnings per share:

	For the Three Months Ended
(Dollars in thousands)	March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Basic
Net income to common stockholders	$	23,528	$	25,839	$	23,627	$	27,180	$	33,122
Weighted average common shares outstanding		24,800,771		24,786,720		24,759,419		24,724,128		24,675,109
Basic earnings per common share	$	0.95	$	1.04	$	0.95	$	1.10	$	1.34

Diluted
Net income to common stockholders - diluted	$	23,528	$	25,839	$	23,627	$	27,180	$	33,122
Weighted average common shares outstanding		24,800,771		24,786,720		24,759,419		24,724,128		24,675,109
Dilutive effects of:
Assumed exercises of stock options		107,359		124,462		121,110		134,358		130,016
Restricted stock awards		237,305		236,251		141,204		139,345		169,514
Restricted stock units		86,099		87,605		74,268		73,155		66,714
Performance stock units - market based		139,563		150,969		131,346		134,313		128,167
Performance stock units - performance based		—		—		—		—		—
Employee stock purchase plan		771		4,726		616		3,708		1,418
Weighted average shares outstanding - diluted		25,371,868		25,390,733		25,227,963		25,209,007		25,170,938
Diluted earnings per common share	$	0.93	$	1.02	$	0.94	$	1.08	$	1.32

Shares that were not considered in computing diluted earnings per common share because they were antidilutive or have not met the thresholds to be considered in the dilutive calculation are as follows:

	For the Three Months Ended
	March 31, 2022	December 31, 2021	September 30, 2021	June 30, 2021	March 31, 2021
Stock options	12,911	—	16,939	16,939	—
Restricted stock awards	8,463	8,463	—	—	—
Restricted stock units	15,000	15,000	—	—	—
Performance stock units - market based	—	—	12,020	13,520	—
Performance stock units - performance based	258,635	259,383	259,383	265,625	256,625
Employee stock purchase plan	—	—	—	—	—

Loans held for investment summarized as of:

(Dollars in thousands)	March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Commercial real estate	$	625,763	$	632,775	$	630,106	$	701,576	$	784,110
Construction, land development, land		119,560		123,464		171,814		185,444		223,841
1-4 family residential properties		117,534		123,115		127,073		135,288		142,859
Farmland		17,910		77,394		82,990		91,122		97,835
Commercial		1,375,044		1,430,429		1,398,497		1,453,583		1,581,125
Factored receivables		1,764,590		1,699,537		1,607,028		1,398,299		1,208,718
Consumer		9,276		10,885		12,677		12,389		14,332
Mortgage warehouse		694,401		769,973		752,545		853,514		1,031,692
Total loans	$	4,724,078	$	4,867,572	$	4,782,730	$	4,831,215	$	5,084,512

Our banking loan portfolio consists of traditional community bank loans as well as commercial finance product lines focused on businesses that require specialized financial solutions and national lending product lines that further diversify our lending operations.

Banking loans held for investment are further summarized below:

(Dollars in thousands)	March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Commercial real estate	$	625,763	$	632,775	$	630,106	$	701,576	$	784,110
Construction, land development, land		119,560		123,464		171,814		185,444		223,841
1-4 family residential		117,534		123,115		127,073		135,288		142,859
Farmland		17,910		77,394		82,990		91,122		97,835
Commercial - General		286,936		295,662		289,242		290,562		288,458
Commercial - Paycheck Protection Program		12,090		27,197		87,413		135,307		237,299
Commercial - Agriculture		15,887		70,127		77,263		76,346		83,859
Commercial - Equipment		612,277		621,437		588,105		604,396		623,248
Commercial - Asset-based lending		284,808		281,659		213,927		181,394		188,825
Commercial - Liquid Credit		163,046		134,347		142,547		165,578		159,436
Consumer		9,276		10,885		12,677		12,389		14,332
Mortgage Warehouse		694,401		769,973		752,545		853,514		1,031,692
Total banking loans held for investment	$	2,959,488	$	3,168,035	$	3,175,702	$	3,432,916	$	3,875,794

The following table presents the Company's operating segments:

(Dollars in thousands)
Three months ended March 31, 2022	Banking			Factoring			Payments			Corporate			Consolidated
Total interest income	$	42,183		$	56,374		$	4,832		$	46		$	103,435
Intersegment interest allocations		1,857			(1,775	)		(82	)		—			—
Total interest expense		1,603			—			—			1,753			3,356
Net interest income (expense)		42,437			54,599			4,750			(1,707	)		100,079
Credit loss expense (benefit)		(2,870	)		1,949			354			1,068			501
Net interest income after credit loss expense		45,307			52,650			4,396			(2,775	)		99,578
Noninterest income		5,995			1,871			3,242			13			11,121
Noninterest expense		41,708			21,389			14,333			1,134			78,564
Operating income (loss)	$	9,594		$	33,132		$	(6,695	)	$	(3,896	)	$	32,135

(Dollars in thousands)
Three months ended December 31, 2021	Banking		Factoring			Payments			Corporate			Consolidated
Total interest income	$	45,534	$	58,042		$	4,154		$	49		$	107,779
Intersegment interest allocations		2,272		(2,178	)		(94	)		—			—
Total interest expense		1,980		—			—			1,742			3,722
Net interest income (expense)		45,826		55,864			4,060			(1,693	)		104,057
Credit loss expense (benefit)		171		1,600			(110	)		347			2,008
Net interest income after credit loss expense		45,655		54,264			4,170			(2,040	)		102,049
Noninterest income		8,308		2,295			3,209			447			14,259
Noninterest expense		46,617		22,335			13,376			676			83,004
Operating income (loss)	$	7,346	$	34,224		$	(5,997	)	$	(2,269	)	$	33,304

Information pertaining to our factoring segment, which includes only factoring originated by our Triumph Business Capital subsidiary, summarized as of and for the quarters ended:

	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Factored receivable period end balance	$	1,666,530,000		$	1,546,361,000		$	1,479,989,000		$	1,284,314,000		$	1,118,988,000
Yield on average receivable balance		14.16	%		14.42	%		13.75	%		14.99	%		13.85	%
Current quarter charge-off rate⁽¹⁾		0.04	%		0.01	%		0.24	%		0.04	%		3.95	%
Factored receivables - transportation concentration		90	%		90	%		90	%		91	%		90	%

Interest income, including fees	$	56,374,000		$	58,042,000		$	47,222,000		$	44,653,000		$	35,824,000
Non-interest income⁽²⁾		1,871,000			2,295,000			1,557,000			2,742,000			1,757,000
Factored receivable total revenue		58,245,000			60,337,000			48,779,000			47,395,000			37,581,000
Average net funds employed		1,451,984,000			1,442,551,000			1,235,610,000			1,072,405,000			936,528,000
Yield on average net funds employed		16.27	%		16.59	%		15.66	%		17.73	%		16.27	%

Accounts receivable purchased	$	4,041,883,000		$	4,032,585,000		$	3,531,811,000		$	3,068,262,000		$	2,492,468,000
Number of invoices purchased		1,604,012			1,669,387			1,535,321			1,401,695			1,188,678
Average invoice size	$	2,520		$	2,416		$	2,300		$	2,189		$	2,097
Average invoice size - transportation	$	2,401		$	2,291		$	2,195		$	2,090		$	1,974
Average invoice size - non-transportation	$	5,495		$	5,648		$	4,944		$	4,701		$	4,775
Metrics above include assets and deposits held for sale.

(1)	March 31, 2021 includes a $41.3 million charge-off related to the TFS acquisition, which contributed approximately 3.94% to the net charge-off rate for the quarter.

(2)	Total factoring segment non-interest income was $6.4 million for the three months ended March 31, 2021.

	March 31, 2021 non-interest income used to calculate yield on average net funds employed excludes a $4.7 million gain on our indemnification asset.

Information pertaining to our payments segment, which includes only our TriumphPay division, summarized as of and for the quarters ended:

	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Factored receivable period end balance	$	178,879,000		$	153,176,000		$	127,039,000		$	113,985,000		$	89,730,000

Interest income	$	4,832,000		$	4,154,000		$	3,295,000		$	2,675,000		$	1,969,000
Noninterest income		3,242,000			3,209,000			3,086,000			1,083,000			73,000
Total revenue	$	8,074,000		$	7,363,000		$	6,381,000		$	3,758,000		$	2,042,000

Pre-tax operating income (loss)	$	(6,695,000	)	$	(5,997,000	)	$	(5,184,000	)	$	(7,441,000	)	$	(2,552,000	)
Interest expense		82,000			94,000			111,000			139,000			167,000
Depreciation and software amortization expense		108,000			57,000			77,000			68,000			65,000
Intangible amortization expense		1,490,000			1,489,000			1,490,000			497,000			—
Earnings (losses) before interest, taxes, depreciation, and amortization	$	(5,015,000	)	$	(4,357,000	)	$	(3,506,000	)	$	(6,737,000	)	$	(2,320,000	)
Transaction costs		—			—			—			2,992,000			—
Adjusted earnings (losses) before interest, taxes, depreciation, and amortization⁽¹⁾	$	(5,015,000	)	$	(4,357,000	)	$	(3,506,000	)	$	(3,745,000	)	$	(2,320,000	)

Number of invoices processed		3,978,174			4,027,680			3,760,948			3,165,119			2,529,673
Amount of payments processed	$	5,700,849,000		$	5,242,051,000		$	4,191,424,000		$	3,426,808,000		$	2,301,632,000

⁽¹⁾Earnings (losses) before interest, taxes, depreciation, and amortization ("EBITDA") is a non-GAAP financial measure used as a supplemental measure to evaluate the performance of our Payments segment. Adjusted EBITDA excludes material gains and expenses related to merger and acquisition-related activities and is a non-GAAP financial measure used to provide meaningful supplemental information regarding the segment's operational performance and to enhance investors' overall understanding of such financial performance by removing the volatility associated with certain acquisition-related items that are unrelated to our core business.

Deposits summarized as of:

(Dollars in thousands)	March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Non-interest bearing demand	$	1,859,376	$	1,925,370	$	2,020,984	$	1,803,552	$	1,637,653
Interest bearing demand		782,859		830,019		795,234		760,874		729,364
Individual retirement accounts		70,311		83,410		86,012		87,052		89,748
Money market		526,324		520,358		472,242		395,035		402,070
Savings		448,878		504,146		483,946		474,163		464,035
Certificates of deposit		431,243		533,206		574,539		612,730		740,694
Brokered time deposits		2,752		40,125		117,064		306,975		516,006
Other brokered deposits		210,043		210,045		272,554		285,069		210,095
Total deposits	$	4,331,786	$	4,646,679	$	4,822,575	$	4,725,450	$	4,789,665

Net interest margin summarized for the three months ended:

	March 31, 2022							December 31, 2021
(Dollars in thousands)	Average Balance		Interest			Average Rate		Average Balance		Interest		Average Rate
Interest earning assets:
Interest earning cash balances	$	273,742	$	128		0.19	%	$	361,059	$	141	0.15	%
Taxable securities		170,051		1,083		2.58	%		142,658		1,266	3.52	%
Tax-exempt securities		14,789		95		2.61	%		26,691		172	2.56	%
FHLB and other restricted stock		9,993		76		3.08	%		5,170		25	1.92	%
Loans		4,813,857		102,053		8.60	%		4,851,171		106,175	8.68	%
Total interest earning assets	$	5,282,432	$	103,435		7.94	%	$	5,386,749	$	107,779	7.94	%
Non-interest earning assets:
Other assets		560,887							593,013
Total assets	$	5,843,319						$	5,979,762
Interest bearing liabilities:
Deposits:
Interest bearing demand	$	833,297	$	443		0.22	%	$	825,784	$	486	0.23	%
Individual retirement accounts		82,692		104		0.51	%		84,966		115	0.54	%
Money market		538,553		282		0.21	%		486,939		261	0.21	%
Savings		509,728		191		0.15	%		493,796		190	0.15	%
Certificates of deposit		518,399		584		0.46	%		550,746		647	0.47	%
Brokered time deposits		1,668		—		—	%		33,263		9	0.11	%
Other brokered deposits		231,378		(43	)	(0.08	%)		299,290		199	0.26	%
Total interest bearing deposits		2,715,715		1,561		0.23	%		2,774,784		1,907	0.27	%
Federal Home Loan Bank advances		63,889		41		0.26	%		38,967		24	0.24	%
Subordinated notes		107,039		1,299		4.92	%		106,847		1,297	4.82	%
Junior subordinated debentures		40,661		454		4.53	%		40,530		444	4.35	%
Other borrowings		5,090		1		0.08	%		62,143		50	0.32	%
Total interest bearing liabilities	$	2,932,394	$	3,356		0.46	%	$	3,023,271	$	3,722	0.49	%
Non-interest bearing liabilities and equity:
Non-interest bearing demand deposits		1,938,667							2,022,973
Other liabilities		91,309							81,835
Total equity		880,949							851,683
Total liabilities and equity	$	5,843,319						$	5,979,762
Net interest income			$	100,079						$	104,057
Interest spread						7.48	%					7.45	%
Net interest margin						7.68	%					7.66	%

(1) Loan balance totals include respective nonaccrual assets.

(2) Net interest spread is the yield on average interest earning assets less the rate on interest bearing liabilities.

(3) Net interest margin is the ratio of net interest income to average interest earning assets.

(4) Average rates have been annualized.

Additional information pertaining to our loan portfolio, including loans held for investment and loans held for sale, summarized for the quarters ended:

(Dollars in thousands)	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Average Banking loans	$	3,032,745		$	3,112,072		$	3,299,152		$	3,516,747		$	3,722,895
Average Factoring receivables		1,614,462			1,597,091			1,362,856			1,195,209			1,048,968
Average Payments receivables		166,650			142,008			115,401			102,094			76,412
Average total loans	$	4,813,857		$	4,851,171		$	4,777,409		$	4,814,050		$	4,848,275
Banking yield		5.46	%		5.61	%		5.40	%		5.25	%		5.31	%
Factoring yield		14.16	%		14.42	%		13.75	%		14.99	%		13.85	%
Payments yield		11.76	%		11.61	%		11.33	%		10.51	%		10.45	%
Total loan yield		8.60	%		8.68	%		7.92	%		7.77	%		7.24	%

Metrics and non-GAAP financial reconciliation:

	As of and for the Three Months Ended
(Dollars in thousands, except per share amounts)	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Net income available to common stockholders	$	23,528		$	25,839		$	23,627		$	27,180		$	33,122
Transaction costs		—			—			—			2,992			—
Tax effect of adjustments		—			—			—			(715	)		—
Adjusted net income available to common stockholders - diluted	$	23,528		$	25,839		$	23,627		$	29,457		$	33,122

Weighted average shares outstanding - diluted		25,371,868			25,390,733			25,227,963			25,209,007			25,170,938
Adjusted diluted earnings per common share	$	0.93		$	1.02		$	0.94		$	1.17		$	1.32

Average total stockholders' equity	$	880,949		$	851,683		$	818,022		$	786,404		$	746,849
Average preferred stock liquidation preference		(45,000	)		(45,000	)		(45,000	)		(45,000	)		(45,000	)
Average total common stockholders' equity		835,949			806,683			773,022			741,404			701,849
Average goodwill and other intangibles		(275,378	)		(278,528	)		(284,970	)		(220,310	)		(188,980	)
Average tangible common stockholders' equity	$	560,571		$	528,155		$	488,052		$	521,094		$	512,869

Net income available to common stockholders	$	23,528		$	25,839		$	23,627		$	27,180		$	33,122
Average tangible common equity		560,571			528,155			488,052			521,094			512,869
Return on average tangible common equity		17.02	%		19.41	%		19.21	%		20.92	%		26.19	%

Net interest income	$	100,079		$	104,057		$	91,771		$	90,282		$	83,020
Non-interest income		11,121			14,259			12,055			13,896			14,291
Operating revenue	$	111,200		$	118,316		$	103,826		$	104,178		$	97,311
Non-interest expenses	$	78,564		$	83,004		$	72,813		$	70,798		$	60,892
Transaction costs		—			—			—			(2,992	)		—
Adjusted non-interest expenses	$	78,564		$	83,004		$	72,813		$	67,806		$	60,892
Adjusted efficiency ratio		70.65	%		70.16	%		70.13	%		65.09	%		62.57	%

Adjusted net non-interest expense to average assets ratio:
Non-interest expenses	$	78,564		$	83,004		$	72,813		$	70,798		$	60,892
Transaction costs		—			—			—			(2,992	)		—
Adjusted non-interest expenses	$	78,564		$	83,004		$	72,813		$	67,806		$	60,892
Total non-interest income	$	11,121		$	14,259		$	12,055		$	13,896		$	14,291
Adjusted net non-interest expenses	$	67,443		$	68,745		$	60,758		$	53,910		$	46,601
Average total assets	$	5,843,319		$	5,979,762		$	6,020,631		$	6,093,805		$	6,013,668
Adjusted net non-interest expense to average assets ratio		4.68	%		4.56	%		4.00	%		3.55	%		3.14	%

Total stockholders' equity	$	886,665		$	858,864		$	820,674		$	792,388		$	764,004
Preferred stock liquidation preference		(45,000	)		(45,000	)		(45,000	)		(45,000	)		(45,000	)
Total common stockholders' equity		841,665			813,864			775,674			747,388			719,004
Goodwill and other intangibles		(269,119	)		(276,856	)		(280,055	)		(286,567	)		(188,006	)
Tangible common stockholders' equity	$	572,546		$	537,008		$	495,619		$	460,821		$	530,998
Common shares outstanding		25,161,690			25,158,879			25,123,342			25,109,703			24,882,929
Tangible book value per share	$	22.75		$	21.34		$	19.73		$	18.35		$	21.34

Total assets at end of period	$	6,076,434		$	5,956,250		$	6,024,535		$	6,015,877		$	6,099,628
Goodwill and other intangibles		(269,119	)		(276,856	)		(280,055	)		(286,567	)		(188,006	)
Tangible assets at period end	$	5,807,315		$	5,679,394		$	5,744,480		$	5,729,310		$	5,911,622
Tangible common stockholders' equity ratio		9.86	%		9.46	%		8.63	%		8.04	%		8.98	%

1) Triumph uses certain non-GAAP financial measures to provide meaningful supplemental information regarding Triumph's operational performance and to enhance investors' overall understanding of such financial performance. The non-GAAP measures used by Triumph include the following:

"Adjusted diluted earnings per common share" is defined as adjusted net income available to common stockholders divided by adjusted weighted average diluted common shares outstanding. Excluded from net income available to common stockholders are material gains and expenses related to merger and acquisition-related activities, including divestitures, net of tax. In our judgment, the adjustments made to net income available to common stockholders allow management and investors to better assess our performance in relation to our core net income by removing the volatility associated with certain acquisition-related items and other discrete items that are unrelated to our core business. Weighted average diluted common shares outstanding are adjusted as a result of changes in their dilutive properties given the gain and expense adjustments described herein.
"Tangible common stockholders' equity" is defined as common stockholders' equity less goodwill and other intangible assets.
"Total tangible assets" is defined as total assets less goodwill and other intangible assets.
"Tangible book value per share" is defined as tangible common stockholders' equity divided by total common shares outstanding. This measure is important to investors interested in changes from period-to-period in book value per share exclusive of changes in intangible assets.
"Tangible common stockholders' equity ratio" is defined as the ratio of tangible common stockholders' equity divided by total tangible assets. We believe that this measure is important to many investors in the marketplace who are interested in relative changes from period-to period in common equity and total assets, each exclusive of changes in intangible assets.
"Return on Average Tangible Common Equity" is defined as net income available to common stockholders divided by average tangible common stockholders' equity.
"Adjusted efficiency ratio" is defined as non-interest expenses divided by our operating revenue, which is equal to net interest income plus non-interest income. Also excluded are material gains and expenses related to merger and acquisition-related activities, including divestitures. In our judgment, the adjustments made to operating revenue and non-interest expense allow management and investors to better assess our performance in relation to our core operating revenue by removing the volatility associated with certain acquisition-related items and other discrete items that are unrelated to our core business.
"Adjusted net non-interest expense to average total assets" is defined as non-interest expenses net of non-interest income divided by total average assets. Excluded are material gains and expenses related to merger and acquisition-related activities, including divestitures. This metric is used by our management to better assess our operating efficiency.

2) Performance ratios include discount accretion on purchased loans for the periods presented as follows:

	For the Three Months Ended
(Dollars in thousands)	March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Loan discount accretion	$	1,536	$	1,674	$	1,953	$	2,161	$	3,501

3) Asset quality ratios exclude loans held for sale, except for non-performing assets to total assets.

4) Current quarter ratios are preliminary.

Source: Triumph Bancorp, Inc.

Investor Relations:

Luke Wyse

Senior Vice President, Finance & Investor Relations

lwyse@tbkbank.com

214-365-6936

Media Contact:

Amanda Tavackoli

Senior Vice President, Director of Corporate Communication

atavackoli@tbkbank.com

214-365-6930

Triumph Bancorp Reports First Quarter Net Income to Common Stockholders of $23.5 million