Triumph Bancorp Reports Second Quarter Net Income to Common Stockholders of $12.7 Million

Published

DALLAS, July 17, 2019 (GLOBE NEWSWIRE) -- Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”) today announced earnings and operating results for the second quarter of 2019. 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. 2019 Second Quarter Highlights and Recent Developments For the second quarter of 2019, net income available to common stockholders was $12.7 million. Diluted earnings per share were $0.48. Net interest margin (“NIM”) was 5.99% for the quarter ended June 30, 2019. Total loans held for investment increased $223.0 million, or 6.2%, to $3.836 billion at June 30, 2019. Average loans for the quarter increased $172.9 million, or 4.9%, to $3.708 billion.Triumph Business Capital grew period-end clients to 6,455 clients, which is an increase of 73 clients, or 1.1%. The total dollar value of invoices purchased for the quarter ended June 30, 2019 was $1.409 billion with an average invoice price of $1,612. At June 30, 2019, there were 146 clients utilizing the TriumphPay platform, which is an increase of 16 clients, or 12.3%, during the quarter. For the quarter ended June 30, 2019, TriumphPay processed 149,734 invoices paying 28,126 distinct carriers a total of $168.8 million.During the quarter ended June 30, 2019, the Company repurchased 590,829 shares into treasury stock under its stock repurchase program at an average price of $29.42, for a total of $17.4 million. During the six months ended June 30, 2019, the Company has repurchased 838,141 shares into treasury stock under its stock repurchase program at an average price of $29.74, for a total of $24.9 million, completing its previously announced $25.0 million stock repurchase program. Repurchase Program Authorization On July 17, 2019 the Company’s board of directors authorized the Company to repurchase up to an additional $25.0 million of the Company’s outstanding common stock.  The Company may repurchase these shares from time to time in open market transactions or through privately negotiated transactions at the Company’s discretion.  The amount, timing and nature of any share repurchases will be based on a variety of factors, including the trading price of the Company’s common stock, applicable securities laws restrictions, regulatory limitations and market and economic factors.  This repurchase program is authorized for a period of up to one year and does not require the Company to repurchase any specific number of shares.  The repurchase program may be modified, suspended or discontinued at any time, at the Company’s discretion. Balance Sheet Total loans held for investment increased $223.0 million, or 6.2%, during the second quarter to $3.836 billion at June 30, 2019. The commercial finance portfolio increased $77.6 million, or 7.0%, to $1.187 billion at June 30, 2019. The national lending portfolio increased $91.5 million, or 23.7%, to $477.2 million at June 30, 2019. The community banking portfolio increased $53.9 million, or 2.5%, to $2.172 billion at June 30, 2019. Total deposits were $3.659 billion at June 30, 2019, an increase of $344.5 million or 10.4% in the second quarter of 2019.  Non-interest-bearing deposits accounted for 19% of total deposits and non-time deposits accounted for 57% of total deposits at June 30, 2019.  Net Interest Income We earned net interest income for the quarter ended June 30, 2019 of $63.4 million compared to $61.3 million for the quarter ended March 31, 2019. Yields on loans for the quarter ended June 30, 2019 were down 4 bps from the prior quarter to 7.95%. The average cost of our total deposits was 1.14% for the quarter ended June 30, 2019 compared to 0.99% for the quarter ended March 31, 2019.  Asset Quality Non-performing assets were 0.86% of total assets at June 30, 2019 compared to 0.84% of total assets at March 31, 2019.  The ratio of past due to total loans decreased to 1.90% at June 30, 2019 from 2.33% at March 31, 2019. We recorded total net charge-offs of $1.9 million, or 0.05% of average loans, for the quarter ended June 30, 2019 compared to net charge-offs of $1.0 million, or 0.03% of average loans, for the quarter ended March 31, 2019.  We recorded a provision for loan losses of $3.7 million for the quarter ended June 30, 2019 compared to a provision of $1.0 million for the quarter ended March 31, 2019. From March 31, 2019 to June 30, 2019, our ALLL increased from $27.6 million or 0.76% of total loans to $29.4 million or 0.77% of total loans. Non-Interest Income and Expense We earned non-interest income for the quarter ended June 30, 2019 of $7.6 million compared to $7.5 million for the quarter ended March 31, 2019. For the quarter ended June 30, 2019, non-interest expense totaled $50.7 million, compared to $48.6 million for the quarter ended March 31, 2019.  Conference Call Information Aaron P. Graft, Vice Chairman and CEO and Bryce Fowler, CFO will review the quarterly results in a conference call for investors and analysts beginning at 7:00 a.m. Central Time on Thursday, July 18, 2019. Todd Ritterbusch, Chief Lending Officer, will also be available for questions. To participate in the live conference call, please dial 1-855-940-9472 (Canada: 1-855-669-9657) and request to be joined into the Triumph Bancorp, Inc. call.  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/tbk190718.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.  Triumph offers a diversified line of community banking, national lending, and commercial finance products through its bank subsidiary, TBK Bank, SSB. 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; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; risks related to the integration of acquired businesses (including our acquisitions of First Bancorp of Durango, Inc., Southern Colorado Corp., and the operating assets of Interstate Capital Corporation and certain of its affiliates) and any future acquisitions; changes in management personnel; interest rate risk; concentration of our factoring 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; 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 the Federal Deposit Insurance Corporation 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, 2019. 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 its 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 Six Months Ended   June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30, (Dollars in thousands) 2019  2019  2018  2018  2018  2019  2018 Financial Highlights:                            Total assets $4,783,189  $4,529,783  $4,559,779  $4,537,102  $3,794,631  $4,783,189  $3,794,631 Loans held for investment $3,835,903  $3,612,869  $3,608,644  $3,512,143  $3,196,462  $3,835,903  $3,196,462 Deposits $3,658,978  $3,314,440  $3,450,349  $3,439,049  $2,624,942  $3,658,978  $2,624,942 Net income available to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070                              Performance Ratios - Annualized:                            Return on average assets  1.09%  1.33%  1.60%  0.90%  1.37%  1.21%  1.40%Return on average total equity  7.83%  9.30%  11.35%  5.88%  8.53%  8.55%  10.01%Return on average common equity  7.83%  9.30%  11.40%  5.85%  8.54%  8.55%  10.05%Return on average tangible common equity(1)  11.19%  13.43%  16.73%  7.57%  9.95%  12.29%  11.85%Yield on loans(2)  7.95%  7.99%  8.14%  8.33%  8.09%  7.97%  7.88%Cost of interest bearing deposits  1.42%  1.24%  1.15%  1.08%  0.93%  1.33%  0.89%Cost of total deposits  1.14%  0.99%  0.91%  0.85%  0.73%  1.07%  0.70%Cost of total funds  1.40%  1.28%  1.14%  1.16%  1.06%  1.34%  1.00%Net interest margin(2)  5.99%  6.15%  6.34%  6.59%  6.36%  6.07%  6.21%Net non-interest expense to average assets  3.68%  3.70%  3.55%  4.19%  3.59%  3.69%  3.51%Adjusted net non-interest expense to average assets(1)  3.68%  3.70%  3.55%  3.62%  3.47%  3.69%  3.51%Efficiency ratio  71.37%  70.54%  65.52%  72.15%  64.26%  70.96%  64.65%Adjusted efficiency ratio(1)  71.37%  70.54%  65.52%  63.49%  62.38%  70.96%  64.29%                             Asset Quality:(3)                            Past due to total loans  1.90%  2.33%  2.41%  2.23%  2.54%  1.90%  2.54%Non-performing loans to total loans  0.96%  0.95%  1.00%  1.13%  1.43%  0.96%  1.43%Non-performing assets to total assets  0.86%  0.84%  0.84%  0.93%  1.28%  0.86%  1.28%ALLL to non-performing loans  79.91%  80.70%  76.47%  68.82%  53.57%  79.91%  53.57%ALLL to total loans  0.77%  0.76%  0.76%  0.78%  0.77%  0.77%  0.77%Net charge-offs to average loans  0.05%  0.03%  0.05%  0.12%  0.01%  0.08%  0.06%                             Capital:                            Tier 1 capital to average assets(4)  10.84%  11.32%  11.08%  11.75%  15.00%  10.84%  15.00%Tier 1 capital to risk-weighted assets(4)  11.09%  11.76%  11.49%  11.16%  14.68%  11.09%  14.68%Common equity tier 1 capital to risk-weighted assets(4)  10.19%  10.81%  10.55%  9.96%  13.32%  10.19%  13.32%Total capital to risk-weighted assets(4)  12.88%  13.62%  13.35%  13.05%  16.73%  12.88%  16.73%Total equity to total assets  13.45%  14.27%  13.96%  13.59%  16.00%  13.45%  16.00%Tangible common stockholders' equity to tangible assets(1)  9.78%  10.37%  10.03%  9.35%  13.05%  9.78%  13.05%                             Per Share Amounts:                            Book value per share $24.56  $24.19  $23.62  $23.10  $22.76  $24.56  $22.76 Tangible book value per share(1) $17.13  $16.82  $16.22  $15.42  $18.27  $17.13  $18.27 Basic earnings per common share $0.48  $0.55  $0.68  $0.34  $0.48  $1.04  $1.04 Diluted earnings per common share $0.48  $0.55  $0.67  $0.34  $0.47  $1.03  $1.02 Adjusted diluted earnings per common share(1) $0.48  $0.55  $0.67  $0.51  $0.50  $1.03  $1.02 Shares outstanding end of period  26,198,308   26,709,411   26,949,936   26,279,761   26,260,785   26,198,308   26,260,785                               Unaudited consolidated balance sheet as of:                   June 30,  March 31,  December 31,  September 30,  June 30,  (Dollars in thousands) 2019  2019  2018  2018  2018 ASSETS                    Total cash and cash equivalents $209,305  $171,950  $234,939  $282,409  $133,365 Securities - available for sale  329,991   339,465   336,423   355,981   183,184 Securities - held to maturity  8,573   8,499   8,487   8,403   8,673 Equity securities  5,479   5,183   5,044   4,981   5,025 Loans held for sale  2,877   610   2,106   683   — Loans held for investment  3,835,903   3,612,869   3,608,644   3,512,143   3,196,462 Allowance for loan and lease losses  (29,416)  (27,605)  (27,571)  (27,256)  (24,547)Loans, net  3,806,487   3,585,264   3,581,073   3,484,887   3,171,915 FHLB stock  18,037   21,191   15,943   23,109   19,223 Premises and equipment, net  84,998   84,931   83,392   82,935   68,313 Other real estate owned ("OREO"), net  3,351   3,073   2,060   2,442   2,528 Goodwill and intangible assets, net  194,668   197,015   199,417   201,842   117,777 Bank-owned life insurance  40,847   40,667   40,509   40,339   40,168 Deferred tax asset, net  7,278   7,608   8,438   8,137   8,810 Other assets  71,298   64,327   41,948   40,954   35,650 Total assets $4,783,189  $4,529,783  $4,559,779  $4,537,102  $3,794,631 LIABILITIES                    Non-interest bearing deposits $684,223  $667,597  $724,527  $697,903  $561,033 Interest bearing deposits  2,974,755   2,646,843   2,725,822   2,741,146   2,063,909 Total deposits  3,658,978   3,314,440   3,450,349   3,439,049   2,624,942 Customer repurchase agreements  12,788   3,727   4,485   13,248   10,509 Federal Home Loan Bank advances  305,000   405,000   330,000   330,000   420,000 Subordinated notes  48,983   48,956   48,929   48,903   48,878 Junior subordinated debentures  39,320   39,200   39,083   38,966   38,849 Other liabilities  74,758   72,244   50,326   50,295   44,228 Total liabilities  4,139,827   3,883,567   3,923,172   3,920,461   3,187,406 EQUITY                    Preferred stock series A  —   —   —   4,550   4,550 Preferred stock series B  —   —   —   5,108   5,108 Common stock  271   271   271   264   264 Additional paid-in-capital  471,145   470,292   469,341   458,920   457,980 Treasury stock, at cost  (27,468)  (9,881)  (2,288)  (2,285)  (2,254)Retained earnings  198,004   185,274   170,486   152,401   143,426 Accumulated other comprehensive income  1,410   260   (1,203)  (2,317)  (1,849)Total equity  643,362   646,216   636,607   616,641   607,225 Total liabilities and equity $4,783,189  $4,529,783  $4,559,779  $4,537,102  $3,794,631                       Unaudited consolidated statement of income:          For the Three Months Ended  For the Six Months Ended   June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30,  (Dollars in thousands) 2019  2019  2018  2018  2018  2019  2018 Interest income:                            Loans, including fees $47,910  $45,094  $44,435  $41,257  $38,148  $93,004  $75,031 Factored receivables, including fees  25,558   24,556   28,070   27,939   20,791   50,114   36,094 Securities  2,667   2,644   2,314   1,551   1,179   5,311   2,489 FHLB stock  146   192   154   147   101   338   206 Cash deposits  1,022   778   877   865   1,030   1,800   1,547 Total interest income  77,303   73,264   75,850   71,759   61,249   150,567   115,367 Interest expense:                            Deposits  10,010   8,218   7,931   6,219   4,631   18,228   8,908 Subordinated notes  839   839   839   837   838   1,678   1,675 Junior subordinated debentures  744   760   717   714   713   1,504   1,310 Other borrowings  2,291   2,136   1,482   2,207   1,810   4,427   3,087 Total interest expense  13,884   11,953   10,969   9,977   7,992   25,837   14,980 Net interest income  63,419   61,311   64,881   61,782   53,257   124,730   100,387 Provision for loan losses  3,681   1,014   1,910   6,803   4,906   4,695   7,454 Net interest income after provision for loan losses  59,738   60,297   62,971   54,979   48,351   120,035   92,933 Non-interest income:                            Service charges on deposits  1,700   1,606   1,702   1,412   1,210   3,306   2,355 Card income  2,071   1,844   1,999   1,877   1,394   3,915   2,638 Net OREO gains (losses) and valuation adjustments  148   209   37   65   (528)  357   (616)Net gains (losses) on sale of securities  14   (11)  —   —   —   3   (272)Fee income  1,519   1,612   1,636   1,593   1,121   3,131   1,921 Insurance commissions  961   919   846   1,113   819   1,880   1,533 Gain on sale of subsidiary  —   —   —   —   —   —   1,071 Other  1,210   1,359   574   (1)  929   2,569   1,487 Total non-interest income  7,623   7,538   6,794   6,059   4,945   15,161   10,117 Non-interest expense:                            Salaries and employee benefits  28,120   26,439   25,586   24,695   20,527   54,559   39,931 Occupancy, furniture and equipment  4,502   4,522   4,402   3,553   3,014   9,024   6,068 FDIC insurance and other regulatory assessments  303   299   184   363   383   602   582 Professional fees  1,550   1,865   1,837   3,384   2,078   3,415   3,718 Amortization of intangible assets  2,347   2,402   2,438   2,064   1,361   4,749   2,478 Advertising and promotion  1,796   1,604   1,036   1,609   1,300   3,400   2,329 Communications and technology  4,988   4,874   4,388   7,252   3,271   9,862   6,630 Other  7,098   6,561   7,091   6,026   5,469   13,659   9,709 Total non-interest expense  50,704   48,566   46,962   48,946   37,403   99,270   71,445 Net income before income tax  16,657   19,269   22,803   12,092   15,893   35,926   31,605 Income tax expense  3,927   4,481   4,718   2,922   3,508   8,408   7,152 Net income $12,730  $14,788  $18,085  $9,170  $12,385  $27,518  $24,453 Dividends on preferred stock  —   —   —   (195)  (193)  —   (383)Net income available to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070                               Earnings per share:          For the Three Months Ended  For the Six Months Ended   June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30, (Dollars in thousands) 2019  2019  2018  2018  2018  2019  2018 Basic                            Net income to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070 Weighted average common shares outstanding  26,396,351   26,679,724   26,666,554   26,178,194   25,519,108   26,537,255   23,133,489 Basic earnings per common share $0.48  $0.55  $0.68  $0.34  $0.48  $1.04  $1.04                              Diluted                            Net income to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070 Dilutive effect of preferred stock  —   —   —   195   193   —   383 Net income to common stockholders - diluted $12,730  $14,788  $18,085  $9,170  $12,385  $27,518  $24,453 Weighted average common shares outstanding  26,396,351   26,679,724   26,666,554   26,178,194   25,519,108   26,537,255   23,133,489 Dilutive effects of:                            Assumed conversion of Preferred A  —   —   89,240   315,773   315,773   —   315,773 Assumed conversion of Preferred B  —   —   100,176   354,471   354,471   —   354,471 Assumed exercises of stock options  59,962   64,166   76,219   90,320   86,821   61,819   85,123 Restricted stock awards  30,110   49,795   46,457   45,796   37,417   39,352   60,425 Restricted stock units  —   —   1,303   7,276   2,288   —   862 Performance stock units  —   —   —   —   —   —   — Weighted average shares outstanding - diluted  26,486,423   26,793,685   26,979,949   26,991,830   26,315,878   26,638,426   23,950,143 Diluted earnings per common share $0.48  $0.55  $0.67  $0.34  $0.47  $1.03  $1.02                                                           Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows:                                For the Three Months Ended  For the Six Months Ended   June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30,   2019  2019  2018  2018  2018  2019  2018 Assumed conversion of Preferred A  —   —   —   —   —   —   — Assumed conversion of Preferred B  —   —   —   —   —   —   — Stock options  70,037   50,752   51,952   51,952   51,952   70,037   51,952 Restricted stock awards  —   13,290   14,513   14,513   —   —   — Restricted stock units  58,400   58,400   —   —   —   58,400   — Performance stock units  70,879   58,400   59,658   59,658   59,658   70,879   59,658                               Loans held for investment summarized as of:                   June 30,  March 31,  December 31,  September 30,  June 30,  (Dollars in thousands) 2019  2019  2018  2018  2018 Commercial real estate $1,098,279  $1,093,882  $992,080  $906,494  $766,839 Construction, land development, land  157,861   145,002   179,591   190,920   147,852 1-4 family residential properties  186,070   194,067   190,185   194,752   122,653 Farmland  144,594   156,299   170,540   177,313   177,060 Commercial  1,257,330   1,117,640   1,114,971   1,123,598   1,006,443 Factored receivables  583,131   570,663   617,791   611,285   603,812 Consumer  26,048   27,941   29,822   31,423   28,775 Mortgage warehouse  382,590   307,375   313,664   276,358   343,028 Total loans $3,835,903  $3,612,869  $3,608,644  $3,512,143  $3,196,462                       Our total loans held for investment 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. Commercial finance loans are further summarized below:                   June 30,  March 31,  December 31,  September 30,  June 30, (Dollars in thousands) 2019  2019  2018  2018  2018 Commercial - Equipment $395,094  $364,447  $352,037  $323,832  $290,314 Commercial - Asset-based lending  208,896   174,447   214,110   273,096   261,412 Factored receivables  583,131   570,663   617,791   611,285   603,812 Commercial finance $1,187,121  $1,109,557  $1,183,938  $1,208,213  $1,155,538                      Commercial finance % of total loans  31%  31%  33%  34%  36%                      National lending loans are further summarized below:                   June 30,  March 31,  December 31,  September 30,  June 30, (Dollars in thousands) 2019  2019  2018  2018  2018 Mortgage warehouse $382,590  $307,375  $313,664  $276,358  $343,028 Commercial - Liquid credit  21,758   960   963   966   968 Commercial - Premium finance  72,898   77,389   72,302   75,293   51,416 National lending $477,246  $385,724  $386,929  $352,617  $395,412                      National lending % of total loans  12%  11%  11%  10%  12%                      Additional information pertaining to our loan portfolio, summarized for the quarters ended:                   June 30,  March 31,  December 31,  September 30,  June 30, (Dollars in thousands) 2019  2019  2018  2018  2018 Average community banking $2,166,122  $2,103,816  $2,012,255  $1,748,936  $1,658,654 Average commercial finance  1,168,110   1,123,978   1,190,586   1,184,064   978,239 Average national lending  373,755   307,249   329,630   360,719   285,155 Average total loans $3,707,987  $3,535,043  $3,532,471  $3,293,719  $2,922,047 Community banking yield  5.88%  5.91%  5.82%  5.75%  5.97%Commercial finance yield  12.52%  12.50%  12.82%  13.00%  12.48%National lending yield  5.62%  5.73%  5.44%  5.54%  5.35%Total loan yield  7.95%  7.99%  8.14%  8.33%  8.09%                      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:                   June 30,  March 31,  December 31,  September 30,  June 30,   2019  2019  2018  2018  2018 Factored receivable period end balance $544,601,000  $534,420,000  $588,750,000  $579,985,000  $577,548,000 Yield on average receivable balance  18.73%  17.96%  18.24%  18.96%  18.70%Rolling twelve quarter annual charge-off rate  0.40%  0.39%  0.37%  0.38%  0.41%Factored receivables - transportation concentration  83%  81%  83%  83%  84%                     Interest income, including fees $24,762,000  $23,803,000  $27,578,000  $27,420,000  $20,314,000 Non-interest income  1,205,000   1,077,000   1,032,000   942,000   920,000 Factored receivable total revenue  25,967,000   24,880,000   28,610,000   28,362,000   21,234,000 Average net funds employed  483,203,000   490,241,000   547,996,000   525,499,000   398,096,000 Yield on average net funds employed  21.55%  20.58%  20.71%  21.41%  21.39%                     Accounts receivable purchased $1,408,982,000  $1,325,140,000  $1,541,332,000  $1,503,049,000  $1,162,810,000 Number of invoices purchased  874,248   789,838   882,042   836,771   656,429 Average invoice size $1,612  $1,678  $1,747  $1,796  $1,771 Average invoice size - transportation $1,492  $1,541  $1,625  $1,666  $1,695 Average invoice size - non-transportation $3,047  $3,276  $3,209  $3,267  $2,522                      Net new clients  73   191   259   422   2,072 Period end clients  6,455   6,382   6,191   5,932   5,510                       Deposits summarized as of:                   June 30,  March 31,  December 31,  September 30,  June 30, (Dollars in thousands) 2019  2019  2018  2018  2018 Non-interest bearing demand $684,223  $667,597  $724,527  $697,903  $561,033 Interest bearing demand  587,164   602,088   615,704   608,775   358,246 Individual retirement accounts  111,328   112,696   115,583   118,459   101,380 Money market  440,289   372,109   443,663   413,402   268,699 Savings  362,594   372,914   369,389   373,062   239,127 Certificates of deposit  1,122,873   851,411   835,127   854,048   751,290 Brokered deposits  350,507   335,625   346,356   373,400   345,167 Total deposits $3,658,978  $3,314,440  $3,450,349  $3,439,049  $2,624,942                       Net interest margin summarized for the three months ended:          June 30, 2019  March 31, 2019   Average      Average  Average      Average (Dollars in thousands) Balance  Interest  Rate  Balance  Interest  Rate Interest earning assets:                        Interest earning cash balances $166,426  $1,022   2.46% $126,372  $778   2.50%Taxable securities  287,607   2,317   3.23%  275,642   2,169   3.19%Tax-exempt securities  61,712   350   2.28%  88,667   475   2.17%FHLB stock  21,851   146   2.67%  17,860   192   4.36%Loans  3,707,987   73,468   7.95%  3,535,043   69,650   7.99%Total interest earning assets $4,245,583  $77,303   7.30% $4,043,584  $73,264   7.35%Non-interest earning assets:                        Other assets  449,064           458,176         Total assets $4,694,647          $4,501,760         Interest bearing liabilities:                        Deposits:                        Interest bearing demand $592,593  $391   0.26% $606,096  $374   0.25%Individual retirement accounts  111,962   437   1.57%  113,636   405   1.45%Money market  419,066   1,473   1.41%  408,953   1,331   1.32%Savings  366,953   120   0.13%  370,067   123   0.13%Certificates of deposit  1,006,950   5,568   2.22%  834,515   3,965   1.93%Brokered deposits  337,086   2,021   2.40%  353,829   2,020   2.32%Total deposits  2,834,610   10,010   1.42%  2,687,096   8,218   1.24%Subordinated notes  48,967   839   6.87%  48,940   839   6.95%Junior subordinated debentures  39,241   744   7.60%  39,125   760   7.88%Other borrowings  368,455   2,291   2.49%  336,667   2,136   2.57%Total interest bearing liabilities $3,291,273  $13,884   1.69% $3,111,828  $11,953   1.56%Non-interest bearing liabilities and equity:                        Non-interest bearing demand deposits  686,923           679,538         Other liabilities  64,104           65,434         Total equity  652,347           644,960         Total liabilities and equity $4,694,647          $4,501,760         Net interest income     $63,419          $61,311     Interest spread          5.61%          5.79%Net interest margin          5.99%          6.15%                          Metrics and non-GAAP financial reconciliation:          As of and for the Three Months Ended  As of and for the Six Months Ended  (Dollars in thousands, June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30,  except per share amounts) 2019  2019  2018  2018  2018  2019  2018 Net income available to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070 Gain on sale of subsidiary or division  —   —   —   —   —   —   (1,071)Transaction related costs  —   —   —   5,871   1,094   —   1,094 Tax effect of adjustments  —   —   —   (1,392)  (257)  —   (9)Adjusted net income available to common stockholders $12,730  $14,788  $18,085  $13,454  $13,029  $27,518  $24,084 Dilutive effect of convertible preferred stock  —   —   —   195   193   —   383 Adjusted net income available to common stockholders - diluted $12,730  $14,788  $18,085  $13,649  $13,222  $27,518  $24,467                              Weighted average shares outstanding - diluted  26,486,423   26,793,685   26,979,949   26,991,830   26,315,878   26,638,426   23,950,143 Adjusted effects of assumed Preferred Stock conversion  —   —   —   —   —   —   — Adjusted weighted average shares outstanding - diluted  26,486,423   26,793,685   26,979,949   26,991,830   26,315,878   26,638,426   23,950,143 Adjusted diluted earnings per common share $0.48  $0.55  $0.67  $0.51  $0.50  $1.03  $1.02                              Net income available to common stockholders $12,730  $14,788  $18,085  $8,975  $12,192  $27,518  $24,070 Average tangible common equity  456,346   446,571   428,748   470,553   491,492   451,485   409,509 Return on average tangible common equity  11.19%  13.43%  16.73%  7.57%  9.95%  12.29%  11.85%                             Adjusted efficiency ratio:                            Net interest income $63,419  $61,311  $64,881  $61,782  $53,257  $124,730  $100,387 Non-interest income  7,623   7,538   6,794   6,059   4,945   15,161   10,117 Operating revenue  71,042   68,849   71,675   67,841   58,202   139,891   110,504 Gain on sale of subsidiary or division  —   —   —   —   —   —   (1,071)Adjusted operating revenue $71,042  $68,849  $71,675  $67,841  $58,202  $139,891  $109,433 Non-interest expenses $50,704  $48,566  $46,962  $48,946  $37,403  $99,270  $71,445 Transaction related costs  —   —   —   (5,871)  (1,094)  —   (1,094)Adjusted non-interest expenses $50,704  $48,566  $46,962  $43,075  $36,309  $99,270  $70,351 Adjusted efficiency ratio  71.37%  70.54%  65.52%  63.49%  62.38%  70.96%  64.29%                             Adjusted net non-interest expense to average assets ratio:                            Non-interest expenses $50,704  $48,566  $46,962  $48,946  $37,403  $99,270  $71,445 Transaction related costs  —   —   —   (5,871)  (1,094)  —   (1,094)Adjusted non-interest expenses $50,704  $48,566  $46,962  $43,075  $36,309  $99,270  $70,351                              Total non-interest income $7,623  $7,538  $6,794  $6,059  $4,945  $15,161  $10,117 Gain on sale of subsidiary or division  —   —   —   —   —   —   (1,071)Adjusted non-interest income $7,623  $7,538  $6,794  $6,059  $4,945  $15,161  $9,046 Adjusted net non-interest expenses $43,081  $41,028  $40,168  $37,016  $31,364  $84,109  $61,305 Average total assets $4,694,647  $4,501,760  $4,488,918  $4,060,560  $3,628,960  $4,598,735  $3,520,522 Adjusted net non-interest expense to average assets ratio  3.68%  3.70%  3.55%  3.62%  3.47%  3.69%  3.51%                             Total stockholders' equity $643,362  $646,216  $636,607  $616,641  $607,225  $643,362  $607,225 Preferred stock liquidation preference  —   —   —   (9,658)  (9,658)  —   (9,658)Total common stockholders' equity  643,362   646,216   636,607   606,983   597,567   643,362   597,567 Goodwill and other intangibles  (194,668)  (197,015)  (199,417)  (201,842)  (117,777)  (194,668)  (117,777)Tangible common stockholders' equity $448,694  $449,201  $437,190  $405,141  $479,790  $448,694  $479,790 Common shares outstanding  26,198,308   26,709,411   26,949,936   26,279,761   26,260,785   26,198,308   26,260,785 Tangible book value per share $17.13  $16.82  $16.22  $15.42  $18.27  $17.13  $18.27                              Total assets at end of period $4,783,189  $4,529,783  $4,559,779  $4,537,102  $3,794,631  $4,783,189  $3,794,631 Goodwill and other intangibles  (194,668)  (197,015)  (199,417)  (201,842)  (117,777)  (194,668)  (117,777)Tangible assets at period end $4,588,521  $4,332,768  $4,360,362  $4,335,260  $3,676,854  $4,588,521  $3,676,854 Tangible common stockholders' equity ratio  9.78%  10.37%  10.03%  9.35%  13.05%  9.78%  13.05%                              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 Six Months Ended   June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30, (Dollars in thousands) 2019  2019  2018  2018  2018  2019  2018 Loan discount accretion $1,297  $1,557  $1,411  $1,271  $3,637  $2,854  $5,614                               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 WyseSenior Vice President, Finance & Investor Relationslwyse@tbkbank.com214-365-6936 Media Contact:Amanda TavackoliSenior Vice President, Marketing & Communicationatavackoli@tbkbank.com 214-365-6930 Source: Triumph Bancorp, Inc.

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