Document

Exhibit 99.1

Triumph Bancorp Reports Fourth Quarter Net Income to Common Stockholders of $25.8 million

DALLAS – January 20, 2022 (GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”) today announced earnings and operating results for the fourth quarter of 2021.

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.

2021 Fourth Quarter Highlights

•For the fourth quarter of 2021, net income to common shareholders was $25.8 million, and diluted earnings per share were $1.02.

•Net interest income was $104.1 million.

•Non-interest income was $14.3 million.

•Non-interest expense was $83.0 million. Included in non-interest expense was a $7.4 million accrual for our Strategic Equity Grant ("SEG") reflected in salaries and employee benefits which represents a cumulative catch-up to cover two-thirds of the three year vesting period. Further discussion of the SEG can be found in our 2020 Proxy.

•Net interest margin was 7.66%. Yield on loans and the average cost of our total deposits were 8.68% and 0.16%, respectively.

•Credit loss expense for the quarter ended December 31, 2021 was $2.0 million.

•Net charge-offs were $0.2 million for the quarter.

•The total dollar value of invoices purchased by Triumph Business Capital was $4.033 billion with an average invoice size of $2,416. The transportation average invoice size for the quarter was $2,291.

•TriumphPay processed 4,027,680 invoices paying carriers a total of $5.242 billion.

Balance Sheet

Total loans held for investment increased $84.8 million, or 1.8%, during the fourth quarter to $4.868 billion at December 31, 2021. Average loans held for investment for the quarter increased $73.1 million, or 1.5%, to $4.844 billion.

Total deposits were $4.647 billion at December 31, 2021, a decrease of $175.9 million, or 3.6%, in the fourth quarter of 2021. Non-interest-bearing deposits accounted for 41% of total deposits and non-time deposits accounted for 86% of total deposits at December 31, 2021.

Asset Quality and Allowance for Credit Loss

Our nonperforming assets ratio at December 31, 2021 was 0.92%. Approximately 2 basis points of this ratio at December 31, 2021 consisted of $1.4 million of the acquired Over-Formula Advance portfolio which represents the portion that is not covered by CVLG's indemnification. An additional 33 basis points of this ratio at December 31, 2021 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 December 31, 2021 was 2.86%. Approximately 21 basis points of this ratio at December 31, 2021 consisted of $10.1 million of past due factored receivables related to the Over-Formula Advance portfolio. An additional 40 basis points of this ratio at December 31, 2021 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 0.87% at December 31, 2021.

CARES Act and Paycheck Protection Program

As of December 31, 2021, our balance sheet reflected deferrals on outstanding loan balances of $31.9 million to assist customers impacted by COVID-19. Modifications related to the COVID-19 pandemic and qualifying under the provisions of Section 4013 of the CARES Act are not considered troubled debt restructurings. As of December 31, 2021, these deferred balances carried accrued interest of $0.1 million.

As of December 31, 2021, we carried 118 PPP loans representing a balance of $27.2 million classified as commercial loans. We recognized $2.7 million in fees from the SBA on PPP loans during the three months ended December 31, 2021 and carry $0.8 million of deferred fees on PPP loans at quarter end. The remaining fees will be amortized over the respective lives of the loans or recognized upon forgiveness of the loans.

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 December 31, 2021.

At December 31, 2021, the carrying value of the acquired over-formula advances was $10.1 million, the total reserve on acquired over-formula advances was $10.1 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 $4.8 million.

As of December 31, 2021 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. In addition to commencing litigation against such customer, 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 December 31, 2021. The full amount of such receivable is reflected in non-performing and past due factored receivables as of December 31, 2021 in accordance with our policy. As of December 31, 2021, 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 Friday, January 21, 2022.

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

984179. 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/links/tbk220121.html. 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 12, 2021.

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															As of and for the Twelve Months Ended
(Dollars in thousands)	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020
Financial Highlights:
Total assets	$	5,956,250		$	6,024,535		$	6,015,877		$	6,099,628		$	5,935,791		$	5,956,250		$	5,935,791
Loans held for investment	$	4,867,572		$	4,782,730		$	4,831,215		$	5,084,512		$	4,996,776		$	4,867,572		$	4,996,776
Deposits	$	4,646,679		$	4,822,575		$	4,725,450		$	4,789,665		$	4,716,600		$	4,646,679		$	4,716,600
Net income available to common stockholders	$	25,839		$	23,627		$	27,180		$	33,122		$	31,328		$	109,768		$	62,323

Performance Ratios - Annualized:
Return on average assets	1.77		%	1.61		%	1.84		%	2.29		%	2.21		%	1.87		%	1.18		%
Return on average total equity	12.41		%	11.85		%	14.27		%	18.42		%	17.73		%	14.10		%	9.67		%
Return on average common equity	12.71		%	12.13		%	14.70		%	19.14		%	18.44		%	14.52		%	9.77		%
Return on average tangible common equity (1)	19.41		%	19.21		%	20.92		%	26.19		%	25.70		%	21.42		%	13.92		%
Yield on loans(2)	8.68		%	7.92		%	7.77		%	7.24		%	7.20		%	7.91		%	7.00		%
Cost of interest bearing deposits	0.27		%	0.27		%	0.31		%	0.41		%	0.54		%	0.32		%	0.93		%
Cost of total deposits	0.16		%	0.16		%	0.20		%	0.28		%	0.38		%	0.20		%	0.67		%
Cost of total funds	0.29		%	0.38		%	0.34		%	0.42		%	0.51		%	0.36		%	0.80		%
Net interest margin(2)	7.66		%	6.69		%	6.47		%	6.06		%	6.20		%	6.72		%	5.71		%
Net non-interest expense to average assets	4.56		%	4.00		%	3.75		%	3.14		%	2.54		%	3.87		%	2.98		%
Adjusted net non-interest expense to average assets (1)	4.56		%	4.00		%	3.55		%	3.14		%	2.54		%	3.82		%	3.14		%
Efficiency ratio	70.16		%	70.13		%	67.96		%	62.57		%	55.95		%	67.87		%	64.35		%
Adjusted efficiency ratio (1)	70.16		%	70.13		%	65.09		%	62.57		%	55.95		%	67.16		%	65.97		%

Asset Quality:(3)
Past due to total loans	2.86		%	2.31		%	2.28		%	1.96		%	3.22		%	2.86		%	3.22		%
Non-performing loans to total loans	0.95		%	0.90		%	1.06		%	1.17		%	1.16		%	0.95		%	1.16		%
Non-performing assets to total assets	0.92		%	0.86		%	0.97		%	1.15		%	1.15		%	0.92		%	1.15		%
ACL to non-performing loans	91.20		%	95.75		%	88.92		%	80.87		%	164.98		%	91.20		%	164.98		%
ACL to total loans	0.87		%	0.86		%	0.95		%	0.94		%	1.92		%	0.87		%	1.92		%
Net charge-offs to average loans	—		%	0.08		%	0.01		%	0.85		%	0.03		%	0.95		%	0.10		%

Capital:
Tier 1 capital to average assets(4)	11.11		%	10.43		%	9.73		%	10.89		%	10.80		%	11.11		%	10.80		%
Tier 1 capital to risk-weighted assets(4)	11.51		%	11.06		%	10.33		%	11.28		%	10.60		%	11.51		%	10.60		%
Common equity tier 1 capital to risk-weighted assets(4)	9.94		%	9.45		%	8.74		%	9.72		%	9.05		%	9.94		%	9.05		%
Total capital to risk-weighted assets	14.10		%	13.69		%	12.65		%	13.58		%	13.03		%	14.10		%	13.03		%
Total equity to total assets	14.42		%	13.62		%	13.17		%	12.53		%	12.24		%	14.42		%	12.24		%
Tangible common stockholders' equity to tangible assets(1)	9.46		%	8.63		%	8.04		%	8.98		%	8.56		%	9.46		%	8.56		%

Per Share Amounts:
Book value per share	$	32.35		$	30.87		$	29.76		$	28.90		$	27.42		$	32.35		$	27.42
Tangible book value per share (1)	$	21.34		$	19.73		$	18.35		$	21.34		$	19.78		$	21.34		$	19.78
Basic earnings per common share	$	1.04		$	0.95		$	1.10		$	1.34		$	1.27		$	4.44		$	2.56
Diluted earnings per common share	$	1.02		$	0.94		$	1.08		$	1.32		$	1.25		$	4.35		$	2.53
Adjusted diluted earnings per common share(1)	$	1.02		$	0.94		$	1.17		$	1.32		$	1.25		$	4.44		$	2.26
Shares outstanding end of period	25,158,879			25,123,342			25,109,703			24,882,929			24,868,218			25,158,879			24,868,218

Unaudited consolidated balance sheet as of:


(Dollars in thousands)	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
ASSETS
Total cash and cash equivalents	$	383,178	$	532,764	$	444,439	$	380,811	$	314,393
Securities - available for sale	182,426		164,816		193,627		205,330		224,310
Securities - held to maturity, net	4,947		5,488		5,658		5,828		5,919
Equity securities	5,504		5,623		5,854		5,826		5,826
Loans held for sale	7,330		26,437		31,136		22,663		24,546
Loans held for investment	4,867,572		4,782,730		4,831,215		5,084,512		4,996,776
Allowance for credit losses	(42,213)		(41,017)		(45,694)		(48,024)		(95,739)
Loans, net	4,825,359		4,741,713		4,785,521		5,036,488		4,901,037
FHLB and other restricted stock	10,146		4,901		8,096		9,807		6,751
Premises and equipment, net	105,729		104,311		106,720		105,390		103,404
Other real estate owned ("OREO"), net	524		893		1,013		1,421		1,432
Goodwill and intangible assets, net	276,856		280,055		286,567		188,006		189,922
Bank-owned life insurance	40,993		41,540		41,912		41,805		41,608
Deferred tax asset, net	10,023		—		—		1,260		6,427
Indemnification asset	4,786		4,786		5,246		5,246		36,225
Other assets	98,449		111,208		100,088		89,747		73,991
Total assets	$	5,956,250	$	6,024,535	$	6,015,877	$	6,099,628	$	5,935,791
LIABILITIES
Non-interest bearing deposits	$	1,925,370	$	2,020,984	$	1,803,552	$	1,637,653	$	1,352,785
Interest bearing deposits	2,721,309		2,801,591		2,921,898		3,152,012		3,363,815
Total deposits	4,646,679		4,822,575		4,725,450		4,789,665		4,716,600
Customer repurchase agreements	2,103		11,990		9,243		2,668		3,099
Federal Home Loan Bank advances	180,000		30,000		130,000		180,000		105,000
Payment Protection Program Liquidity Facility	27,144		97,554		139,673		158,796		191,860
Subordinated notes	106,957		106,755		87,620		87,564		87,509
Junior subordinated debentures	40,602		40,467		40,333		40,201		40,072
Deferred tax liability, net	—		982		3,333		—		—
Other liabilities	93,901		93,538		87,837		76,730		64,870
Total liabilities	5,097,386		5,203,861		5,223,489		5,335,624		5,209,010
EQUITY
Preferred Stock	45,000		45,000		45,000		45,000		45,000
Common stock	283		282		282		280		280
Additional paid-in-capital	510,939		499,282		494,224		490,699		489,151
Treasury stock, at cost	(104,743)		(104,600)		(104,486)		(103,059)		(103,052)
Retained earnings	399,351		373,512		349,885		322,705		289,583
Accumulated other comprehensive income (loss)	8,034		7,198		7,483		8,379		5,819
Total stockholders' equity	858,864		820,674		792,388		764,004		726,781
Total liabilities and equity	$	5,956,250	$	6,024,535	$	6,015,877	$	6,099,628	$	5,935,791

Unaudited consolidated statement of income:


	For the Three Months Ended										For the Twelve Months Ended
(Dollars in thousands)	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Interest income:
Loans, including fees	$	43,979	$	44,882	$	45,988	$	48,706	$	50,723	$	183,555	$	198,214
Factored receivables, including fees	62,196		50,516		47,328		37,795		37,573		197,835		114,434
Securities	1,438		1,126		1,187		1,650		1,519		5,401		8,229
FHLB and other restricted stock	25		28		27		76		56		156		530
Cash deposits	141		183		158		126		68		608		708
Total interest income	107,779		96,735		94,688		88,353		89,939		387,555		322,115
Interest expense:
Deposits	1,907		1,948		2,470		3,372		4,308		9,697		27,403
Subordinated notes	1,297		2,449		1,350		1,349		1,347		6,445		5,363
Junior subordinated debentures	444		443		446		442		452		1,775		2,114
Other borrowings	74		124		140		170		234		508		2,507
Total interest expense	3,722		4,964		4,406		5,333		6,341		18,425		37,387
Net interest income	104,057		91,771		90,282		83,020		83,598		369,130		284,728
Credit loss expense (benefit)	2,008		(1,187)		(1,806)		(7,845)		4,680		(8,830)		38,329
Net interest income after credit loss expense (benefit)	102,049		92,958		92,088		90,865		78,918		377,960		246,399
Non-interest income:
Service charges on deposits	2,050		2,030		1,857		1,787		1,643		7,724		5,274
Card income	2,470		2,144		2,225		1,972		1,949		8,811		7,781
Net OREO gains (losses) and valuation adjustments	29		(9)		(287)		(80)		(217)		(347)		(616)
Net gains (losses) on sale of securities	—		4		1		—		16		5		3,226
Fee income	5,711		5,198		4,470		2,249		1,615		17,628		6,007
Insurance commissions	1,138		1,231		1,272		1,486		1,327		5,127		4,232
Gain on sale of subsidiary	—		—		—		—		—		—		9,758
Other	2,861		1,457		4,358		6,877		16,053		15,553		24,723
Total non-interest income	14,259		12,055		13,896		14,291		22,386		54,501		60,385
Non-interest expense:
Salaries and employee benefits	52,544		43,769		41,658		35,980		33,798		173,951		126,975
Occupancy, furniture and equipment	6,194		6,388		6,112		5,779		7,046		24,473		22,766
FDIC insurance and other regulatory assessments	288		353		500		977		350		2,118		1,520
Professional fees	2,633		2,362		5,052		2,545		2,326		12,592		9,349
Amortization of intangible assets	3,199		3,274		2,428		1,975		2,065		10,876		8,330
Advertising and promotion	1,640		1,403		1,241		890		1,170		5,174		4,718
Communications and technology	7,844		7,090		6,028		5,900		5,639		26,862		22,153
Other	8,662		8,174		7,779		6,846		6,904		31,461		26,263
Total non-interest expense	83,004		72,813		70,798		60,892		59,298		287,507		222,074
Net income before income tax	33,304		32,200		35,186		44,264		42,006		144,954		84,710
Income tax expense	6,664		7,771		7,204		10,341		9,876		31,980		20,686
Net income	$	26,640	$	24,429	$	27,982	$	33,923	$	32,130	$	112,974	$	64,024
Dividends on preferred stock	(801)		(802)		(802)		(801)		(802)		(3,206)		(1,701)
Net income available to common stockholders	$	25,839	$	23,627	$	27,180	$	33,122	$	31,328	$	109,768	$	62,323

Earnings per share:


	For the Three Months Ended										Twelve Months Ended
(Dollars in thousands)	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Basic
Net income to common stockholders	$	25,839	$	23,627	$	27,180	$	33,122	$	31,328	$	109,768	$	62,323
Weighted average common shares outstanding	24,786,720		24,759,419		24,724,128		24,675,109		24,653,099		24,736,713		24,387,932
Basic earnings per common share	$	1.04	$	0.95	$	1.10	$	1.34	$	1.27	$	4.44	$	2.56

Diluted
Net income to common stockholders - diluted	$	25,839	$	23,627	$	27,180	$	33,122	$	31,328	$	109,768	$	62,323
Weighted average common shares outstanding	24,786,720		24,759,419		24,724,128		24,675,109		24,653,099		24,736,713		24,387,932
Dilutive effects of:
Assumed exercises of stock options	124,462		121,110		134,358		130,016		101,664		130,198		64,104
Restricted stock awards	236,251		141,204		139,345		169,514		136,239		170,276		86,498
Restricted stock units	87,605		74,268		73,155		66,714		50,156		76,049		25,978
Performance stock units - market based	150,969		131,346		134,313		128,167		112,228		136,199		51,304
Performance stock units - performance based	—		—		—		—		—		—		—
Employee stock purchase plan	4,726		616		3,708		1,418		—		2,617		—
Weighted average shares outstanding - diluted	25,390,733		25,227,963		25,209,007		25,170,938		25,053,386		25,252,052		24,615,816
Diluted earnings per common share	$	1.02	$	0.94	$	1.08	$	1.32	$	1.25	$	4.35	$	2.53

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					Twelve Months Ended
	December 31, 2021	September 30, 2021	June 30, 2021	March 31, 2021	December 31, 2020	December 31, 2021	December 31, 2020
Stock options	—	16,939	16,939	—	—	16,939	64,947
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	259,383	259,383	265,625	256,625	256,625	259,383	256,625
Employee stock purchase plan	—	—	—	—	—	—	—

Loans held for investment summarized as of:


(Dollars in thousands)	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
Commercial real estate	$	632,775	$	630,106	$	701,576	$	784,110	$	779,158
Construction, land development, land	123,464		171,814		185,444		223,841		219,647
1-4 family residential properties	123,115		127,073		135,288		142,859		157,147
Farmland	77,394		82,990		91,122		97,835		103,685
Commercial	1,430,429		1,398,497		1,453,583		1,581,125		1,562,957
Factored receivables	1,699,537		1,607,028		1,398,299		1,208,718		1,120,770
Consumer	10,885		12,677		12,389		14,332		15,838
Mortgage warehouse	769,973		752,545		853,514		1,031,692		1,037,574
Total loans	$	4,867,572	$	4,782,730	$	4,831,215	$	5,084,512	$	4,996,776

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)	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
Commercial real estate	$	632,775	$	630,106	$	701,576	$	784,110	$	779,158
Construction, land development, land	123,464		171,814		185,444		223,841		219,647
1-4 family residential	123,115		127,073		135,288		142,859		157,147
Farmland	77,394		82,990		91,122		97,835		103,685
Commercial - General	295,662		289,242		290,562		288,458		340,850
Commercial - Paycheck Protection Program	27,197		87,413		135,307		237,299		189,857
Commercial - Agriculture	70,127		77,263		76,346		83,859		94,572
Commercial - Equipment	621,437		588,105		604,396		623,248		573,163
Commercial - Asset-based lending	281,659		213,927		181,394		188,825		180,488
Commercial - Liquid Credit	134,347		142,547		165,578		159,436		184,027
Consumer	10,885		12,677		12,389		14,332		15,838
Mortgage Warehouse	769,973		752,545		853,514		1,031,692		1,037,574
Total banking loans held for investment	$	3,168,035	$	3,175,702	$	3,432,916	$	3,875,794	$	3,876,006

The following table presents the Company’s operating segments:


(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


(Dollars in thousands)
Three months ended September 30, 2021	Banking		Factoring		Payments		Corporate		Consolidated
Total interest income	$	46,175	$	47,222	$	3,295	$	43	$	96,735
Intersegment interest allocations	2,452		(2,341)		(111)		—		—
Total interest expense	2,073		—		—		2,891		4,964
Net interest income (expense)	46,554		44,881		3,184		(2,848)		91,771
Credit loss expense (benefit)	(2,399)		1,164		38		10		(1,187)
Net interest income after credit loss expense	48,953		43,717		3,146		(2,858)		92,958
Noninterest income	7,371		1,557		3,086		41		12,055
Noninterest expense	41,183		19,106		11,416		1,108		72,813
Operating income (loss)	$	15,141	$	26,168	$	(5,184)	$	(3,925)	$	32,200

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:


	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020
Factored receivable period end balance	$	1,546,361,000		$	1,479,989,000		$	1,284,314,000		$	1,118,988,000		$	1,036,548,000
Yield on average receivable balance	14.42		%	13.75		%	14.99		%	13.85		%	13.80		%
Current quarter charge-off rate(1)	0.01		%	0.24		%	0.04		%	3.95		%	0.02		%
Factored receivables - transportation concentration	90		%	90		%	91		%	90		%	89		%

Interest income, including fees	$	58,042,000		$	47,222,000		$	44,653,000		$	35,824,000		$	35,439,000
Non-interest income(2)	2,295,000			1,557,000			2,742,000			1,757,000			1,358,000
Factored receivable total revenue	60,337,000			48,779,000			47,395,000			37,581,000			36,797,000
Average net funds employed	1,442,551,000			1,235,610,000			1,072,405,000			936,528,000			924,899,000
Yield on average net funds employed	16.59		%	15.66		%	17.73		%	16.27		%	15.83		%

Accounts receivable purchased	$	4,032,585,000		$	3,531,811,000		$	3,068,262,000		$	2,492,468,000		$	2,461,249,000
Number of invoices purchased	1,669,387			1,535,321			1,401,695			1,188,678			1,189,271
Average invoice size	$	2,416		$	2,300		$	2,189		$	2,097		$	2,070
Average invoice size - transportation	$	2,291		$	2,195		$	2,090		$	1,974		$	1,943
Average invoice size - non-transportation	$	5,648		$	4,944		$	4,701		$	4,775		$	5,091

(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 and $15.5 million for the three months ended March 31, 2021 and December 31, 2020, respectively.

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.

December 31, 2020 non-interest income used to calculate yield on average net funds employed excludes a gain of $8.9 million related to CVLG’s delivery of proceeds resulting from the liquidation of its acquired stock and a $5.3 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:


	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
Factored receivable period end balance	$	153,176,000	$	127,039,000	$	113,985,000	$	89,730,000	$	84,222,000

Interest income	$	4,154,000	$	3,295,000	$	2,675,000	$	1,969,000	$	2,034,000
Noninterest income	3,209,000		3,086,000		1,083,000		73,000		51,000
Total revenue	$	7,363,000	$	6,381,000	$	3,758,000	$	2,042,000	$	2,085,000

Pre-tax operating income (loss)	$	(5,997,000)	$	(5,184,000)	$	(7,441,000)	$	(2,552,000)	$	(2,026,000)
Interest expense	94,000		111,000		139,000		167,000		178,000
Depreciation and software amortization expense	57,000		77,000		68,000		65,000		63,000
Intangible amortization expense	1,489,000		1,490,000		497,000		—		—
Earnings (losses) before interest, taxes, depreciation, and amortization	$	(4,357,000)	$	(3,506,000)	$	(6,737,000)	$	(2,320,000)	$	(1,785,000)
Transaction costs	—		—		2,992,000		—		—
Adjusted earnings (losses) before interest, taxes, depreciation, and amortization(1)	$	(4,357,000)	$	(3,506,000)	$	(3,745,000)	$	(2,320,000)	$	(1,785,000)

Number of invoices processed	4,027,680		3,760,948		3,165,119		2,529,673		1,818,145
Amount of payments processed	$	5,242,051,000	$	4,191,424,000	$	3,426,808,000	$	2,301,632,000	$	1,920,037,000

(1)Adjusted earnings (losses) before interest, taxes, depreciation, and amortization 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)	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
Non-interest bearing demand	$	1,925,370	$	2,020,984	$	1,803,552	$	1,637,653	$	1,352,785
Interest bearing demand	830,019		795,234		760,874		729,364		688,680
Individual retirement accounts	83,410		86,012		87,052		89,748		92,584
Money market	520,358		472,242		395,035		402,070		393,325
Savings	504,146		483,946		474,163		464,035		421,488
Certificates of deposit	533,206		574,539		612,730		740,694		790,844
Brokered time deposits	40,125		117,064		306,975		516,006		516,786
Other brokered deposits	210,045		272,554		285,069		210,095		460,108
Total deposits	$	4,646,679	$	4,822,575	$	4,725,450	$	4,789,665	$	4,716,600

Net interest margin summarized for the three months ended:


	December 31, 2021						September 30, 2021
(Dollars in thousands)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Interest earning assets:
Interest earning cash balances	$	361,059	$	141	0.15	%	$	474,122	$	183	0.15	%
Taxable securities	142,658		1,266		3.52	%	154,017		948		2.44	%
Tax-exempt securities	26,691		172		2.56	%	27,839		178		2.54	%
FHLB and other restricted stock	5,170		25		1.92	%	7,956		28		1.40	%
Loans	4,851,171		106,175		8.68	%	4,777,409		95,398		7.92	%
Total interest earning assets	$	5,386,749	$	107,779	7.94	%	$	5,441,343	$	96,735	7.05	%
Non-interest earning assets:
Other assets	593,013						579,288
Total assets	$	5,979,762					$	6,020,631
Interest bearing liabilities:
Deposits:
Interest bearing demand	$	825,784	$	486	0.23	%	$	779,625	$	435	0.22	%
Individual retirement accounts	84,966		115		0.54	%	86,571		126		0.58	%
Money market	486,939		261		0.21	%	417,435		225		0.21	%
Savings	493,796		190		0.15	%	479,915		185		0.15	%
Certificates of deposit	550,746		647		0.47	%	595,001		725		0.48	%
Brokered time deposits	33,263		9		0.11	%	99,116		29		0.12	%
Other brokered deposits	299,290		199		0.26	%	441,446		223		0.20	%
Total interest bearing deposits	2,774,784		1,907		0.27	%	2,899,109		1,948		0.27	%
Federal Home Loan Bank advances	38,967		24		0.24	%	36,522		22		0.24	%
Subordinated notes	106,847		1,297		4.82	%	114,071		2,449		8.52	%
Junior subordinated debentures	40,530		444		4.35	%	40,390		443		4.35	%
Other borrowings	62,143		50		0.32	%	127,946		102		0.32	%
Total interest bearing liabilities	$	3,023,271	$	3,722	0.49	%	$	3,218,038	$	4,964	0.61	%
Non-interest bearing liabilities and equity:
Non-interest bearing demand deposits	2,022,973						1,912,398
Other liabilities	81,835						72,173
Total equity	851,683						818,022
Total liabilities and equity	$	5,979,762					$	6,020,631
Net interest income			$	104,057					$	91,771
Interest spread					7.45	%					6.44	%
Net interest margin					7.66	%					6.69	%

Loan balance totals include respective nonaccrual assets.

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

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

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)	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020
Average Banking loans	$	3,112,072		$	3,299,152		$	3,516,747		$	3,722,895		$	3,777,553
Average Factoring receivables	1,597,091			1,362,856			1,195,209			1,048,968			1,024,307
Average Payments receivables	142,008			115,401			102,094			76,412			74,947
Average total loans	$	4,851,171		$	4,777,409		$	4,814,050		$	4,848,275		$	4,876,807
Banking yield	5.61		%	5.40		%	5.25		%	5.31		%	5.34		%
Factoring yield	14.42		%	13.75		%	14.99		%	13.85		%	13.80		%
Payments Yield	11.61		%	11.33		%	10.51		%	10.45		%	10.80		%
Total loan yield	8.68		%	7.92		%	7.77		%	7.24		%	7.20		%

Metrics and non-GAAP financial reconciliation:


	As of and for the Three Months Ended															As of and for the Twelve Months Ended
(Dollars in thousands, except per share amounts)	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020
Net income available to common stockholders	$	25,839		$	23,627		$	27,180		$	33,122		$	31,328		$	109,768		$	62,323
Transaction costs	—			—			2,992			—			—			2,992			827
Gain on sale of subsidiary or division	—			—			—			—			—			—			(9,758)
Tax effect of adjustments	—			—			(715)			—			—			(715)			2,254
Adjusted net income available to common stockholders - diluted	$	25,839		$	23,627		$	29,457		$	33,122		$	31,328		$	112,045		$	55,646

Weighted average shares outstanding - diluted	25,390,733			25,227,963			25,209,007			25,170,938			25,053,386			25,252,052			24,615,816
Adjusted diluted earnings per common share	$	1.02		$	0.94		$	1.17		$	1.32		$	1.25		$	4.44		$	2.26

Average total stockholders' equity	$	851,683		$	818,022		$	786,404		$	746,849		$	720,892		$	801,074		$	661,942
Average preferred stock liquidation preference	(45,000)			(45,000)			(45,000)			(45,000)			(45,000)			(45,000)			(24,099)
Average total common stockholders' equity	806,683			773,022			741,404			701,849			675,892			756,074			637,843
Average goodwill and other intangibles	(278,528)			(284,970)			(220,310)			(188,980)			(191,017)			(243,541)			(190,088)
Average tangible common stockholders' equity	$	528,155		$	488,052		$	521,094		$	512,869		$	484,875		$	512,533		$	447,755

Net income available to common stockholders	$	25,839		$	23,627		$	27,180		$	33,122		$	31,328		$	109,768		$	62,323
Average tangible common equity	528,155			488,052			521,094			512,869			484,875			512,533			447,755
Return on average tangible common equity	19.41		%	19.21		%	20.92		%	26.19		%	25.70		%	21.42		%	13.92		%

Net interest income	$	104,057		$	91,771		$	90,282		$	83,020		$	83,598		$	369,130		$	284,728
Non-interest income	14,259			12,055			13,896			14,291			22,386			54,501			60,385
Operating revenue	118,316			103,826			104,178			97,311			105,984			423,631			345,113
Gain on sale of subsidiary or division	—			—			—			—			—			—			(9,758)
Adjusted operating revenue	$	118,316		$	103,826		$	104,178		$	97,311		$	105,984		$	423,631		$	335,355
Non-interest expenses	$	83,004		$	72,813		$	70,798		$	60,892		$	59,298		$	287,507		$	222,074
Transaction costs	—			—			(2,992)			—			—			(2,992)			(827)
Adjusted non-interest expenses	$	83,004		$	72,813		$	67,806		$	60,892		$	59,298		$	284,515		$	221,247
Adjusted efficiency ratio	70.16		%	70.13		%	65.09		%	62.57		%	55.95		%	67.16		%	65.97		%

Adjusted net non-interest expense to average assets ratio:
Non-interest expenses	$	83,004		$	72,813		$	70,798		$	60,892		$	59,298		$	287,507		$	222,074
Transaction costs	—			—			(2,992)			—			—			(2,992)			(827)
Adjusted non-interest expenses	$	83,004		$	72,813		$	67,806		$	60,892		$	59,298		$	284,515		$	221,247
Total non-interest income	$	14,259		$	12,055		$	13,896		$	14,291		$	22,386		$	54,501		$	60,385
Gain on sale of subsidiary or division	—			—			—			—			—			—			(9,758)
Adjusted non-interest income	$	14,259		$	12,055		$	13,896		$	14,291		$	22,386		$	54,501		$	50,627
Adjusted net non-interest expenses	$	68,745		$	60,758		$	53,910		$	46,601		$	36,912		$	230,014		$	170,620
Average total assets	$	5,979,762		$	6,020,631		$	6,093,805		$	6,013,668		$	5,788,549		$	6,026,819		$	5,426,469
Adjusted net non-interest expense to average assets ratio	4.56		%	4.00		%	3.55		%	3.14		%	2.54		%	3.82		%	3.14		%

Total stockholders' equity	$	858,864		$	820,674		$	792,388		$	764,004		$	726,781		$	858,864		$	726,781
Preferred stock liquidation preference	(45,000)			(45,000)			(45,000)			(45,000)			(45,000)			(45,000)			(45,000)
Total common stockholders' equity	813,864			775,674			747,388			719,004			681,781			813,864			681,781
Goodwill and other intangibles	(276,856)			(280,055)			(286,567)			(188,006)			(189,922)			(276,856)			(189,922)
Tangible common stockholders' equity	$	537,008		$	495,619		$	460,821		$	530,998		$	491,859		$	537,008		$	491,859
Common shares outstanding	25,158,879			25,123,342			25,109,703			24,882,929			24,868,218			25,158,879			24,868,218
Tangible book value per share	$	21.34		$	19.73		$	18.35		$	21.34		$	19.78		$	21.34		$	19.78

Total assets at end of period	$	5,956,250		$	6,024,535		$	6,015,877		$	6,099,628		$	5,935,791		$	5,956,250		$	5,935,791
Goodwill and other intangibles	(276,856)			(280,055)			(286,567)			(188,006)			(189,922)			(276,856)			(189,922)
Tangible assets at period end	$	5,679,394		$	5,744,480		$	5,729,310		$	5,911,622		$	5,745,869		$	5,679,394		$	5,745,869
Tangible common stockholders' equity ratio	9.46		%	8.63		%	8.04		%	8.98		%	8.56		%	9.46		%	8.56		%

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										For the Twelve Months Ended
(Dollars in thousands)	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Loan discount accretion	$	1,674	$	1,953	$	2,161	$	3,501	$	2,334	$	9,289	$	10,711

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