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DALLAS, Oct. 16, 2019 (GLOBE NEWSWIRE) — Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph” or the “Company”) today announced earnings and operating results for the third 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 Third Quarter Highlights and Recent Developments

• For the third quarter of 2019, net income available to common stockholders was $14.3 million. Diluted earnings per share were $0.56.
• Net interest margin (“NIM”) was 5.85% for the quarter ended September 30, 2019.
• Total loans held for investment increased $373.5 million, or 9.7%, to $4.209 billion at September 30, 2019. Average loans for the quarter increased $235.7 million, or 6.4%, to $3.944 billion.
• Triumph Business Capital grew period-end clients to 6,471 clients, which is an increase of 16 clients, or 0.2%. The total dollar value of invoices purchased for the quarter ended September 30, 2019 was $1.451 billion with an average invoice price of $1,628.
• At September 30, 2019, there were 163 clients utilizing the TriumphPay platform, which is an increase of 17 clients, or 11.6%, during the quarter. For the quarter ended September 30, 2019, TriumphPay processed 168,562 invoices paying 30,333 distinct carriers a total of $190.3 million.
• During the quarter ended September 30, 2019, we repurchased 850,093 shares into treasury stock under our stock repurchase program at an average price of $29.38, for a total of $25.0 million. During the nine months ended September 30, 2019, we have repurchased 1,688,234 shares into treasury stock under our stock repurchase programs at an average price of $29.56, for a total of $49.9 million, effectively completing both of our previously announced $25.0 million stock repurchase programs.

Repurchase Program Authorization

On October 16, 2019 our board of directors authorized us to repurchase up to an additional $50.0 million of our outstanding common stock. We may repurchase these shares from time to time in open market transactions or through privately negotiated transactions at our discretion.  The amount, timing and nature of any share repurchases will be based on a variety of factors, including the trading price of our 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 us to repurchase any specific number of shares.  The repurchase program may be modified, suspended or discontinued at any time, at our discretion.

Balance Sheet

Total loans held for investment increased $373.5 million, or 9.7%, during the third quarter to $4.209 billion at September 30, 2019. The commercial finance portfolio increased $89.0 million, or 7.5%, to $1.276 billion, the national lending portfolio increased $249.4 million, or 52.3%, to $726.6 million, and the community banking portfolio increased $35.1 million, or 1.6%, to $2.207 billion during the quarter.

Total deposits were $3.698 billion at September 30, 2019, an increase of $38.9 million, or 1.1%, in the third quarter of 2019.  Non-interest-bearing deposits accounted for 20% of total deposits and non-time deposits accounted for 57% of total deposits at September 30, 2019. 

Net Interest Income

We earned net interest income for the quarter ended September 30, 2019 of $64.8 million compared to $63.4 million for the quarter ended June 30, 2019.

Yields on loans for the quarter ended September 30, 2019 were down 32 bps from the prior quarter to 7.63%. The average cost of our total deposits was 1.19% for the quarter ended September 30, 2019 compared to 1.14% for the quarter ended June 30, 2019. 

Asset Quality

Non-performing assets were 0.91% of total assets at September 30, 2019 compared to 0.86% of total assets at June 30, 2019.  The ratio of past due to total loans increased to 2.47% at September 30, 2019 from 1.90% at June 30, 2019. We recorded total net charge-offs of $0.4 million, or 0.01% of average loans, for the quarter ended September 30, 2019 compared to net charge-offs of $1.9 million, or 0.05% of average loans, for the quarter ended June 30, 2019. 

We recorded a provision for loan losses of $2.9 million for the quarter ended September 30, 2019 compared to a provision of $3.7 million for the quarter ended June 30, 2019. From June 30, 2019 to September 30, 2019, our ALLL increased from $29.4 million or 0.77% of total loans to $31.9 million or 0.76% of total loans.

Non-Interest Income and Expense

We earned non-interest income for the quarter ended September 30, 2019 of $7.7 million compared to $7.6 million for the quarter ended June 30, 2019.

For the quarter ended September 30, 2019, non-interest expense totaled $52.2 million, compared to $50.7 million for the quarter ended June 30, 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, October 17, 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/tbk191017.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 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 Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(Dollars in thousands)		2019				2019				2019				2018				2018				2019				2018
Financial Highlights:
Total assets		$	5,039,697			$	4,783,189			$	4,529,783			$	4,559,779			$	4,537,102			$	5,039,697			$	4,537,102
Loans held for investment		$	4,209,417			$	3,835,903			$	3,612,869			$	3,608,644			$	3,512,143			$	4,209,417			$	3,512,143
Deposits		$	3,697,833			$	3,658,978			$	3,314,440			$	3,450,349			$	3,439,049			$	3,697,833			$	3,439,049
Net income available to common stockholders		$	14,317			$	12,730			$	14,788			$	18,085			$	8,975			$	41,835			$	33,045
Performance Ratios – Annualized:
Return on average assets			1.17	%			1.09	%			1.33	%			1.60	%			0.90	%			1.20	%			1.21	%
Return on average total equity			8.79	%			7.83	%			9.30	%			11.35	%			5.88	%			8.63	%			8.40	%
Return on average common equity			8.79	%			7.83	%			9.30	%			11.40	%			5.85	%			8.63	%			8.41	%
Return on average tangible common equity (1)			12.56	%			11.19	%			13.43	%			16.73	%			7.57	%			12.38	%			10.27	%
Yield on loans(2)			7.63	%			7.95	%			7.99	%			8.14	%			8.33	%			7.85	%			8.05	%
Cost of interest bearing deposits			1.49	%			1.42	%			1.24	%			1.15	%			1.08	%			1.39	%			0.96	%
Cost of total deposits			1.19	%			1.14	%			0.99	%			0.91	%			0.85	%			1.11	%			0.76	%
Cost of total funds			1.41	%			1.40	%			1.28	%			1.14	%			1.16	%			1.36	%			1.06	%
Net interest margin(2)			5.85	%			5.99	%			6.15	%			6.34	%			6.59	%			5.99	%			6.35	%
Net non-interest expense to average assets			3.64	%			3.68	%			3.70	%			3.55	%			4.19	%			3.67	%			3.76	%
Adjusted net non-interest expense to average assets (1)			3.64	%			3.68	%			3.70	%			3.55	%			3.62	%			3.67	%			3.55	%
Efficiency ratio			71.93	%			71.37	%			70.54	%			65.52	%			72.15	%			71.29	%			67.50	%
Adjusted efficiency ratio (1)			71.93	%			71.37	%			70.54	%			65.52	%			63.49	%			71.29	%			63.98	%
Asset Quality:(3)
Past due to total loans			2.47	%			1.90	%			2.33	%			2.41	%			2.23	%			2.47	%			2.23	%
Non-performing loans to total loans			1.00	%			0.96	%			0.95	%			1.00	%			1.13	%			1.00	%			1.13	%
Non-performing assets to total assets			0.91	%			0.86	%			0.84	%			0.84	%			0.93	%			0.91	%			0.93	%
ALLL to non-performing loans			75.58	%			79.91	%			80.70	%			76.47	%			68.82	%			75.58	%			68.82	%
ALLL to total loans			0.76	%			0.77	%			0.76	%			0.76	%			0.78	%			0.76	%			0.78	%
Net charge-offs to average loans			0.01	%			0.05	%			0.03	%			0.05	%			0.12	%			0.09	%			0.19	%
Capital:
Tier 1 capital to average assets(4)			10.37	%			10.84	%			11.32	%			11.08	%			11.75	%			10.37	%			11.75	%
Tier 1 capital to risk-weighted assets(4)			10.08	%			11.08	%			11.76	%			11.49	%			11.16	%			10.08	%			11.16	%
Common equity tier 1 capital to risk-weighted assets(4)			9.26	%			10.19	%			10.81	%			10.55	%			9.96	%			9.26	%			9.96	%
Total capital to risk-weighted assets(4)			11.79	%			12.88	%			13.62	%			13.35	%			13.05	%			11.79	%			13.05	%
Total equity to total assets			12.57	%			13.45	%			14.27	%			13.96	%			13.59	%			12.57	%			13.59	%
Tangible common stockholders’ equity to tangible assets(1)			9.10	%			9.78	%			10.37	%			10.03	%			9.35	%			9.10	%			9.35	%
Per Share Amounts:
Book value per share		$	24.99			$	24.56			$	24.19			$	23.62			$	23.10			$	24.99			$	23.10
Tangible book value per share (1)		$	17.40			$	17.13			$	16.82			$	16.22			$	15.42			$	17.40			$	15.42
Basic earnings per common share		$	0.56			$	0.48			$	0.55			$	0.68			$	0.34			$	1.60			$	1.37
Diluted earnings per common share		$	0.56			$	0.48			$	0.55			$	0.67			$	0.34			$	1.59			$	1.35
Adjusted diluted earnings per common share(1)		$	0.56			$	0.48			$	0.55			$	0.67			$	0.51			$	1.59			$	1.53
Shares outstanding end of period			25,357,985				26,198,308				26,709,411				26,949,936				26,279,761				25,357,985				26,279,761

Unaudited consolidated balance sheet as of:

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2019				2019				2019				2018				2018
ASSETS
Total cash and cash equivalents		$	115,043			$	209,305			$	171,950			$	234,939			$	282,409
Securities – available for sale			302,917				329,991				339,465				336,423				355,981
Securities – held to maturity			8,517				8,573				8,499				8,487				8,403
Equity securities			5,543				5,479				5,183				5,044				4,981
Loans held for sale			7,499				2,877				610				2,106				683
Loans held for investment			4,209,417				3,835,903				3,612,869				3,608,644				3,512,143
Allowance for loan and lease losses			(31,895	)			(29,416	)			(27,605	)			(27,571	)			(27,256	)
Loans, net			4,177,522				3,806,487				3,585,264				3,581,073				3,484,887
FHLB and other restricted stock			23,960				18,037				21,191				15,943				23,109
Premises and equipment, net			87,112				84,998				84,931				83,392				82,935
Other real estate owned (“OREO”), net			2,849				3,351				3,073				2,060				2,442
Goodwill and intangible assets, net			192,440				194,668				197,015				199,417				201,842
Bank-owned life insurance			40,724				40,847				40,667				40,509				40,339
Deferred tax asset, net			5,971				7,278				7,608				8,438				8,137
Other assets			69,600				71,298				64,327				41,948				40,954
Total assets		$	5,039,697			$	4,783,189			$	4,529,783			$	4,559,779			$	4,537,102
LIABILITIES
Non-interest bearing deposits		$	754,233			$	684,223			$	667,597			$	724,527			$	697,903
Interest bearing deposits			2,943,600				2,974,755				2,646,843				2,725,822				2,741,146
Total deposits			3,697,833				3,658,978				3,314,440				3,450,349				3,439,049
Customer repurchase agreements			14,124				12,788				3,727				4,485				13,248
Federal Home Loan Bank advances			530,000				305,000				405,000				330,000				330,000
Subordinated notes			49,010				48,983				48,956				48,929				48,903
Junior subordinated debentures			39,443				39,320				39,200				39,083				38,966
Other liabilities			75,594				74,758				72,244				50,326				50,295
Total liabilities			4,406,004				4,139,827				3,883,567				3,923,172				3,920,461
EQUITY
Preferred stock series A			—				—				—				—				4,550
Preferred stock series B			—				—				—				—				5,108
Common stock			272				271				271				271				264
Additional paid-in-capital			472,368				471,145				470,292				469,341				458,920
Treasury stock, at cost			(52,632	)			(27,468	)			(9,881	)			(2,288	)			(2,285	)
Retained earnings			212,321				198,004				185,274				170,486				152,401
Accumulated other comprehensive income			1,364				1,410				260				(1,203	)			(2,317	)
Total equity			633,693				643,362				646,216				636,607				616,641
Total liabilities and equity		$	5,039,697			$	4,783,189			$	4,529,783			$	4,559,779			$	4,537,102

Unaudited consolidated statement of income:

		For the Three Months Ended																				For the Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(Dollars in thousands)		2019				2019				2019				2018				2018				2019				2018
Interest income:
Loans, including fees		$	50,249			$	47,910			$	45,094			$	44,435			$	41,257			$	143,253			$	116,288
Factored receivables, including fees			25,570				25,558				24,556				28,070				27,939				75,684				64,033
Securities			2,784				2,667				2,644				2,314				1,551				8,095				4,040
FHLB and other restricted stock			209				146				192				154				147				547				353
Cash deposits			603				1,022				778				877				865				2,403				2,412
Total interest income			79,415				77,303				73,264				75,850				71,759				229,982				187,126
Interest expense:
Deposits			11,036				10,010				8,218				7,931				6,219				29,264				15,127
Subordinated notes			840				839				839				839				837				2,518				2,512
Junior subordinated debentures			719				744				760				717				714				2,223				2,024
Other borrowings			2,055				2,291				2,136				1,482				2,207				6,482				5,294
Total interest expense			14,650				13,884				11,953				10,969				9,977				40,487				24,957
Net interest income			64,765				63,419				61,311				64,881				61,782				189,495				162,169
Provision for loan losses			2,865				3,681				1,014				1,910				6,803				7,560				14,257
Net interest income after provision for loan losses			61,900				59,738				60,297				62,971				54,979				181,935				147,912
Non-interest income:
Service charges on deposits			1,937				1,700				1,606				1,702				1,412				5,243				3,767
Card income			2,015				2,071				1,844				1,999				1,877				5,930				4,515
Net OREO gains (losses) and valuation adjustments			(56	)			148				209				37				65				301				(551	)
Net gains (losses) on sale of securities			19				14				(11	)			—				—				22				(272	)
Fee income			1,624				1,519				1,612				1,636				1,593				4,755				3,514
Insurance commissions			1,247				961				919				846				1,113				3,127				2,646
Gain on sale of subsidiary			—				—				—				—				—				—				1,071
Other			956				1,210				1,359				574				(1	)			3,525				1,486
Total non-interest income			7,742				7,623				7,538				6,794				6,059				22,903				16,176
Non-interest expense:
Salaries and employee benefits			28,717				28,120				26,439				25,586				24,695				83,276				64,626
Occupancy, furniture and equipment			4,505				4,502				4,522				4,402				3,553				13,529				9,621
FDIC insurance and other regulatory assessments			(2	)			303				299				184				363				600				945
Professional fees			1,969				1,550				1,865				1,837				3,384				5,384				7,102
Amortization of intangible assets			2,228				2,347				2,402				2,438				2,064				6,977				4,542
Advertising and promotion			1,379				1,796				1,604				1,036				1,609				4,779				3,938
Communications and technology			5,382				4,988				4,874				4,388				7,252				15,244				13,882
Other			7,975				7,098				6,561				7,091				6,026				21,634				15,735
Total non-interest expense			52,153				50,704				48,566				46,962				48,946				151,423				120,391
Net income before income tax			17,489				16,657				19,269				22,803				12,092				53,415				43,697
Income tax expense			3,172				3,927				4,481				4,718				2,922				11,580				10,074
Net income		$	14,317			$	12,730			$	14,788			$	18,085			$	9,170			$	41,835			$	33,623
Dividends on preferred stock			—				—				—				—				(195	)			—				(578	)
Net income available to common stockholders		$	14,317			$	12,730			$	14,788			$	18,085			$	8,975			$	41,835			$	33,045

Earnings per share:

		For the Three Months Ended																				For the Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(Dollars in thousands)		2019				2019				2019				2018				2018				2019				2018
Basic
Net income to common stockholders		$	14,317			$	12,730			$	14,788			$	18,085			$	8,975			$	41,835			$	33,045
Weighted average common shares outstanding			25,621,054				26,396,351				26,679,724				26,666,554				26,178,194				26,228,499				24,159,543
Basic earnings per common share		$	0.56			$	0.48			$	0.55			$	0.68			$	0.34			$	1.60			$	1.37
Diluted
Net income to common stockholders		$	14,317			$	12,730			$	14,788			$	18,085			$	8,975			$	41,835			$	33,045
Dilutive effect of preferred stock			—				—				—				—				195				—				578
Net income to common stockholders – diluted		$	14,317			$	12,730			$	14,788			$	18,085			$	9,170			$	41,835			$	33,623
Weighted average common shares outstanding			25,621,054				26,396,351				26,679,724				26,666,554				26,178,194				26,228,499				24,159,543
Dilutive effects of:
Assumed conversion of Preferred A			—				—				—				89,240				315,773				—				315,773
Assumed conversion of Preferred B			—				—				—				100,176				354,471				—				354,471
Assumed exercises of stock options			60,068				59,962				64,166				76,219				90,320				61,054				86,728
Restricted stock awards			45,631				30,110				49,795				46,457				45,796				40,572				55,087
Restricted stock units			3,045				—				—				1,303				7,276				57				2,706
Performance stock units			4,673				—				—				—				—				1,558				—
Weighted average shares outstanding – diluted			25,734,471				26,486,423				26,793,685				26,979,949				26,991,830				26,331,740				24,974,308
Diluted earnings per common share		$	0.56			$	0.48			$	0.55			$	0.67			$	0.34			$	1.59			$	1.35
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 Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
		2019				2019				2019				2018				2018				2019				2018
Assumed conversion of Preferred A			—				—				—				—				—				—				—
Assumed conversion of Preferred B			—				—				—				—				—				—				—
Stock options			67,023				70,037				50,752				51,952				51,952				67,023				51,952
Restricted stock awards			3,209				—				13,290				14,513				14,513				3,209				14,513
Restricted stock units			—				58,400				58,400				—				—				54,077				—
Performance stock units			55,228				70,879				58,400				59,658				59,658				55,228				59,658

Loans held for investment summarized as of:

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2019				2019				2019				2018				2018
Commercial real estate		$	1,115,559			$	1,098,279			$	1,093,882			$	992,080			$	906,494
Construction, land development, land			164,186				157,861				145,002				179,591				190,920
1-4 family residential properties			186,405				186,070				194,067				190,185				194,752
Farmland			161,447				144,594				156,299				170,540				177,313
Commercial			1,369,505				1,257,330				1,117,640				1,114,971				1,123,598
Factored receivables			599,651				583,131				570,663				617,791				611,285
Consumer			24,967				26,048				27,941				29,822				31,423
Mortgage warehouse			587,697				382,590				307,375				313,664				276,358
Total loans		$	4,209,417			$	3,835,903			$	3,612,869			$	3,608,644			$	3,512,143

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:

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2019				2019				2019				2018				2018
Commercial – Equipment		$	429,412			$	395,094			$	364,447			$	352,037			$	323,832
Commercial – Asset-based lending			247,026				208,896				174,447				214,110				273,096
Factored receivables			599,651				583,131				570,663				617,791				611,285
Commercial finance		$	1,276,089			$	1,187,121			$	1,109,557			$	1,183,938			$	1,208,213
Commercial finance % of total loans			30	%			31	%			31	%			33	%			34	%

National lending loans are further summarized below:

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2019				2019				2019				2018				2018
Mortgage warehouse		$	587,697			$	382,590			$	307,375			$	313,664			$	276,358
Commercial – Liquid credit			37,386				21,758				960				963				966
Commercial – Premium finance			101,562				72,898				77,389				72,302				75,293
National lending		$	726,645			$	477,246			$	385,724			$	386,929			$	352,617
National lending % of total loans			17	%			12	%			11	%			11	%			10	%

Additional information pertaining to our loan portfolio, summarized for the quarters ended:

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2019				2019				2019				2018				2018
Average community banking		$	2,193,533			$	2,166,122			$	2,103,816			$	2,012,255			$	1,748,936
Average commercial finance			1,208,823				1,168,110				1,123,978				1,190,586				1,184,064
Average national lending			541,367				373,755				307,249				329,630				360,719
Average total loans		$	3,943,723			$	3,707,987			$	3,535,043			$	3,532,471			$	3,293,719
Community banking yield			5.79	%			5.88	%			5.91	%			5.82	%			5.75	%
Commercial finance yield			12.31	%			12.52	%			12.50	%			12.82	%			13.00	%
National lending yield			4.63	%			5.62	%			5.73	%			5.44	%			5.54	%
Total loan yield			7.63	%			7.95	%			7.99	%			8.14	%			8.33	%

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:

		September 30,				June 30,				March 31,				December 31,				September 30,
		2019				2019				2019				2018				2018
Factored receivable period end balance		$	562,009,000			$	544,601,000			$	534,420,000			$	588,750,000			$	579,985,000
Yield on average receivable balance			18.23	%			18.73	%			17.96	%			18.24	%			18.96	%
Rolling twelve quarter annual charge-off rate			0.36	%			0.40	%			0.39	%			0.37	%			0.38	%
Factored receivables – transportation concentration			83	%			83	%			81	%			83	%			83	%
Interest income, including fees		$	24,869,000			$	24,762,000			$	23,803,000			$	27,578,000			$	27,420,000
Non-interest income			1,291,000				1,205,000				1,077,000				1,032,000				942,000
Factored receivable total revenue			26,160,000				25,967,000				24,880,000				28,610,000				28,362,000
Average net funds employed			494,198,000				483,203,000				490,241,000				547,996,000				525,499,000
Yield on average net funds employed			21.00	%			21.55	%			20.58	%			20.71	%			21.41	%
Accounts receivable purchased		$	1,450,905,000			$	1,408,982,000			$	1,325,140,000			$	1,541,332,000			$	1,503,049,000
Number of invoices purchased			890,986				874,248				789,838				882,042				836,771
Average invoice size		$	1,628			$	1,612			$	1,678			$	1,747			$	1,796
Average invoice size – transportation		$	1,497			$	1,492			$	1,541			$	1,625			$	1,666
Average invoice size – non-transportation		$	3,467			$	3,047			$	3,276			$	3,209			$	3,267
Net new clients			16				73				191				259				422
Period end clients			6,471				6,455				6,382				6,191				5,932

Deposits summarized as of:

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2019				2019				2019				2018				2018
Non-interest bearing demand		$	754,233			$	684,223			$	667,597			$	724,527			$	697,903
Interest bearing demand			587,123				587,164				602,088				615,704				608,775
Individual retirement accounts			108,593				111,328				112,696				115,583				118,459
Money market			424,162				440,289				372,109				443,663				413,402
Savings			356,368				362,594				372,914				369,389				373,062
Certificates of deposit			1,120,850				1,122,873				851,411				835,127				854,048
Brokered deposits			346,504				350,507				335,625				346,356				373,400
Total deposits		$	3,697,833			$	3,658,978			$	3,314,440			$	3,450,349			$	3,439,049

Net interest margin summarized for the three months ended:

		September 30, 2019												June 30, 2019
		Average								Average				Average								Average
(Dollars in thousands)		Balance				Interest				Rate				Balance				Interest				Rate
Interest earning assets:
Interest earning cash balances		$	104,569			$	603				2.29	%		$	166,426			$	1,022				2.46	%
Taxable securities			278,878				2,495				3.55	%			287,607				2,317				3.23	%
Tax-exempt securities			48,685				289				2.36	%			61,712				350				2.28	%
FHLB and other restricted stock			19,698				209				4.21	%			21,851				146				2.67	%
Loans			3,943,723				75,819				7.63	%			3,707,987				73,468				7.95	%
Total interest earning assets		$	4,395,553			$	79,415				7.17	%		$	4,245,583			$	77,303				7.30	%
Non-interest earning assets:
Other assets			444,987												449,064
Total assets		$	4,840,540											$	4,694,647
Interest bearing liabilities:
Deposits:
Interest bearing demand		$	585,706			$	355				0.24	%		$	592,593			$	391				0.26	%
Individual retirement accounts			110,049				454				1.64	%			111,962				437				1.57	%
Money market			416,526				1,406				1.34	%			419,066				1,473				1.41	%
Savings			359,169				117				0.13	%			366,953				120				0.13	%
Certificates of deposit			1,113,006				6,588				2.35	%			1,006,950				5,568				2.22	%
Brokered deposits			352,430				2,116				2.38	%			337,086				2,021				2.40	%
Total interest bearing deposits			2,936,886				11,036				1.49	%			2,834,610				10,010				1.42	%
Subordinated notes			48,994				840				6.80	%			48,967				839				6.87	%
Junior subordinated debentures			39,364				719				7.25	%			39,241				744				7.60	%
Other borrowings			364,950				2,055				2.23	%			368,455				2,291				2.49	%
Total interest bearing liabilities		$	3,390,194			$	14,650				1.71	%		$	3,291,273			$	13,884				1.69	%
Non-interest bearing liabilities and equity:
Non-interest bearing demand deposits			735,527												686,923
Other liabilities			68,778												64,104
Total equity			646,041												652,347
Total liabilities and equity		$	4,840,540											$	4,694,647
Net interest income						$	64,765											$	63,419
Interest spread											5.46	%											5.61	%
Net interest margin											5.85	%											5.99	%

Metrics and non-GAAP financial reconciliation:

		As of and for the Three Months Ended																				As of and for the Nine Months Ended
(Dollars in thousands,		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
except per share amounts)		2019				2019				2019				2018				2018				2019				2018
Net income available to common stockholders		$	14,317			$	12,730			$	14,788			$	18,085			$	8,975			$	41,835			$	33,045
Gain on sale of subsidiary or division			—				—				—				—				—				—				(1,071	)
Transaction related costs			—				—				—				—				5,871				—				6,965
Tax effect of adjustments			—				—				—				—				(1,392	)			—				(1,401	)
Adjusted net income available to common stockholders		$	14,317			$	12,730			$	14,788			$	18,085			$	13,454			$	41,835			$	37,538
Dilutive effect of convertible preferred stock			—				—				—				—				195				—				578
Adjusted net income available to common stockholders – diluted		$	14,317			$	12,730			$	14,788			$	18,085			$	13,649			$	41,835			$	38,116
Weighted average shares outstanding – diluted			25,734,471				26,486,423				26,793,685				26,979,949				26,991,830				26,331,740				24,974,308
Adjusted effects of assumed Preferred Stock conversion			—				—				—				—				—				—				—
Adjusted weighted average shares outstanding – diluted			25,734,471				26,486,423				26,793,685				26,979,949				26,991,830				26,331,740				24,974,308
Adjusted diluted earnings per common share		$	0.56			$	0.48			$	0.55			$	0.67			$	0.51			$	1.59			$	1.53
Average total stockholders’ equity		$	646,041			$	652,347			$	644,960			$	632,126			$	618,682			$	647,787			$	534,958
Average preferred stock liquidation preference			—				—				—				2,624				9,658				—				9,658
Average total common stockholders’ equity			646,041				652,347				644,960				629,502				609,025				647,787				525,300
Average goodwill and other intangibles			193,765				196,002				198,389				200,754				138,471				196,035				95,220
Average tangible common stockholders’ equity		$	452,276			$	456,346			$	446,571			$	428,748			$	470,553			$	451,752			$	430,080
Net income available to common stockholders		$	14,317			$	12,730			$	14,788			$	18,085			$	8,975			$	41,835			$	33,045
Average tangible common equity			452,276				456,346				446,571				428,748				470,553				451,752				430,080
Return on average tangible common equity			12.56	%			11.19	%			13.43	%			16.73	%			7.57	%			12.38	%			10.27	%
Adjusted efficiency ratio:
Net interest income		$	64,765			$	63,419			$	61,311			$	64,881			$	61,782			$	189,495			$	162,169
Non-interest income			7,742				7,623				7,538				6,794				6,059				22,903				16,176
Operating revenue			72,507				71,042				68,849				71,675				67,841				212,398				178,345
Gain on sale of subsidiary or division			—				—				—				—				—				—				(1,071	)
Adjusted operating revenue		$	72,507			$	71,042			$	68,849			$	71,675			$	67,841			$	212,398			$	177,274
Non-interest expenses		$	52,153			$	50,704			$	48,566			$	46,962			$	48,946			$	151,423			$	120,391
Transaction related costs			—				—				—				—				(5,871	)			—				(6,965	)
Adjusted non-interest expenses		$	52,153			$	50,704			$	48,566			$	46,962			$	43,075			$	151,423			$	113,426
Adjusted efficiency ratio			71.93	%			71.37	%			70.54	%			65.52	%			63.49	%			71.29	%			63.98	%
Adjusted net non-interest expense to average assets ratio:
Non-interest expenses		$	52,153			$	50,704			$	48,566			$	46,962			$	48,946			$	151,423			$	120,391
Transaction related costs			—				—				—				—				(5,871	)			—				(6,965	)
Adjusted non-interest expenses		$	52,153			$	50,704			$	48,566			$	46,962			$	43,075			$	151,423			$	113,426
Total non-interest income		$	7,742			$	7,623			$	7,538			$	6,794			$	6,059			$	22,903			$	16,176
Gain on sale of subsidiary or division			—				—				—				—				—				—				(1,071	)
Adjusted non-interest income		$	7,742			$	7,623			$	7,538			$	6,794			$	6,059			$	22,903			$	15,105
Adjusted net non-interest expenses		$	44,411			$	43,081			$	41,028			$	40,168			$	37,016			$	128,520			$	98,321
Average total assets		$	4,840,540			$	4,694,647			$	4,501,760			$	4,488,918			$	4,060,560			$	4,680,234			$	3,702,513
Adjusted net non-interest expense to average assets ratio			3.64	%			3.68	%			3.70	%			3.55	%			3.62	%			3.67	%			3.55	%
Total stockholders’ equity		$	633,693			$	643,362			$	646,216			$	636,607			$	616,641			$	633,693			$	616,641
Preferred stock liquidation preference			—				—				—				—				(9,658	)			—				(9,658	)
Total common stockholders’ equity			633,693				643,362				646,216				636,607				606,983				633,693				606,983
Goodwill and other intangibles			(192,440	)			(194,668	)			(197,015	)			(199,417	)			(201,842	)			(192,440	)			(201,842	)
Tangible common stockholders’ equity		$	441,253			$	448,694			$	449,201			$	437,190			$	405,141			$	441,253			$	405,141
Common shares outstanding			25,357,985				26,198,308				26,709,411				26,949,936				26,279,761				25,357,985				26,279,761
Tangible book value per share		$	17.40			$	17.13			$	16.82			$	16.22			$	15.42			$	17.40			$	15.42
Total assets at end of period		$	5,039,697			$	4,783,189			$	4,529,783			$	4,559,779			$	4,537,102			$	5,039,697			$	4,537,102
Goodwill and other intangibles			(192,440	)			(194,668	)			(197,015	)			(199,417	)			(201,842	)			(192,440	)			(201,842	)
Tangible assets at period end		$	4,847,257			$	4,588,521			$	4,332,768			$	4,360,362			$	4,335,260			$	4,847,257			$	4,335,260
Tangible common stockholders’ equity ratio			9.10	%			9.78	%			10.37	%			10.03	%			9.35	%			9.10	%			9.35	%

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 Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(Dollars in thousands)		2019				2019				2019				2018				2018				2019				2018
Loan discount accretion		$	1,159			$	1,297			$	1,557			$	1,411			$	1,271			$	4,013			$	6,884

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, Marketing & Communication
atavackoli@tbkbank.com
214-365-6930