UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________________ FORM 10-K _____________________________________________________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Com ...

Financial Data and Key Metrics Changes - For Q4 2020, the company reported net income of $31.1 million or $1.25 per diluted share, indicating a solid quarter with strong profitability [6] - The loan-to-deposit ratio decreased slightly to 106% from 114% at the end of Q3 2020, adjusted for mortgage warehouse loan balances [18] - The net interest margin (NIM) improved to 6.2%, positioning the company at the top of its peer group, driven by growth in transportation lines of business [19] Business Line Data and Key Metrics Changes - Triumph Business Capital's factoring revenue for Q4 2020 was $36.8 million, with a 24% increase compared to Q3 and a 65% increase year-over-year [34] - TriumphPay processed 1.8 million invoices in Q4, totaling approximately $1.8 billion, representing a 56% increase from the prior quarter and a 282% increase from Q4 2019 [35] - The company purchased approximately $19.6 million of accounts receivable from a major trucking client, which led to a legal dispute over payment collection [12][14] Market Data and Key Metrics Changes - The transportation payments business paid approximately 2.9 million invoices totaling around $4.03 billion in Q4, reflecting a 38% growth over the prior quarter [33] - Deferred loan balances at year-end were $104.6 million, an 82% decline from $572 million on June 30, 2020, indicating improved credit risk management [23] Company Strategy and Development Direction - The company aims to enhance its relationship banking across all lending units and expects deposits and fee income to grow faster than loan balances [31] - There is a focus on building a comprehensive banking solution for transportation factoring and equipment finance clients, shifting the loan mix towards long-term relationships [31] - The company plans to continue investing in technology and data analytics to improve operational efficiency and client service [64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transportation sector's strength, citing ongoing challenges in finding qualified drivers and supply chain disruptions [60] - The company anticipates that the legal issues surrounding the TFS acquisition will not lead to further surprises, and it plans to focus on brokered freight and commercial shipper freight moving forward [96] - Management expects core expenses to be approximately $58 million in Q1 2021, with no significant growth anticipated throughout the year [21][108] Other Important Information - The company established an additional $11.5 million in reserves related to the TFS acquisition, impacting reported asset quality metrics [15] - The company is targeting to onboard two more Tier 1 brokers in Q1 2021, with a goal of reaching a $14 billion run rate by the end of 2021 for TriumphPay [56] Q&A Session Summary Question: What is the current QuickPay usage and its impact on average balances? - Management indicated that QuickPay usage varies with new broker onboarding, but for established users, penetration is approaching mid-teens percentages [46] Question: How is the average invoice size trending into 2021? - The average invoice size for January is $1,934, indicating strong demand in the transportation sector [50] Question: What is the outlook for provision expense? - Management believes provision expense could be zero or negative in the coming quarters due to strong credit performance in core businesses [74] Question: What are the expectations for net interest income in Q1? - Management expects Q1 net interest income to be lower than Q4 but not to the extent seen historically [70] Question: What is the company's stance on M&A? - The company is unlikely to pursue M&A outside of the transportation space, focusing instead on organic growth [97]

THE POWER OF AND Q4 2020 Earnings Release January 21, 2021 DISCLAIMER FORWARD-LOOKING STATEMENTS This presentation 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," "i ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________ FORM 10-Q ___________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commissi ...

Triumph Bancorp, Inc. (TBK) Q3 2020 Earnings Conference Call October 20, 2020 8:00 AM ET Company Participants Luke Wyse – Senior Vice President of Finance and Investor Relations Aaron Graft – Vice Chairman and Chief Executive Officer Todd Ritterbusch – Chief Lending Officer Bryce Fowler – Chief Financial Officer Geoff Brenner – Chief Executive Officer-Triumph Business Capital Conference Call Participants Michael Rose – Raymond James Brady Gailey – KBW Matt Olney – Stephens Gary Tenner – D.A. Davidson Steve ...

PART I — FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements and notes for the period ended June 30, 2020 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $5.62 billion, driven by loan growth, while liabilities increased due to higher deposits and borrowings Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 (Unaudited) | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$5,617,493** | **$5,060,297** | | Total cash and cash equivalents | $437,064 | $197,880 | | Loans, net of allowance | $4,338,698 | $4,165,420 | | Goodwill | $158,743 | $158,743 | | **Total Liabilities** | **$4,960,622** | **$4,423,707** | | Total deposits | $4,062,332 | $3,789,906 | | Paycheck Protection Program Liquidity Facility | $223,809 | $0 | | **Total Stockholders' Equity** | **$656,871** | **$636,590** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2020 net income rose due to a one-time gain, while year-to-date income fell sharply on higher credit loss expense Consolidated Income Statement Summary (in thousands, except per share data) | Metric | Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $64,251 | $63,419 | $126,751 | $124,730 | | Credit Loss Expense | $13,609 | $3,681 | $33,907 | $4,695 | | Noninterest Income | $20,029 | $7,623 | $27,506 | $15,161 | | Noninterest Expense | $52,726 | $50,704 | $107,479 | $99,270 | | **Net Income** | **$13,440** | **$12,730** | **$8,990** | **$27,518** | | **Diluted EPS** | **$0.56** | **$0.48** | **$0.37** | **$1.03** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Financing activities provided significant cash inflow, offsetting cash used in investing, resulting in a net cash increase Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $20,557 | $33,826 | | Net cash provided by (used in) investing activities | ($313,899) | ($226,280) | | Net cash provided by (used in) financing activities | $532,526 | $166,820 | | **Net increase (decrease) in cash and cash equivalents** | **$239,184** | **($25,634)** | [Condensed Notes to Consolidated Financial Statements](index=11&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the adoption of CECL, the significant impact of COVID-19, a key divestiture, and a subsequent acquisition - The company adopted ASU 2016-13 (CECL) on January 1, 2020, resulting in a net reduction to retained earnings of **$1.77 million**[102](index=102&type=chunk)[103](index=103&type=chunk) - The COVID-19 pandemic has had a significant impact, leading the company to implement payment deferral programs for borrowers on loans totaling **$572 million** as of June 30, 2020[33](index=33&type=chunk)[41](index=41&type=chunk) - The company originated 1,937 Paycheck Protection Program (PPP) loans with a book value of **$219 million** as of June 30, 2020[42](index=42&type=chunk)[95](index=95&type=chunk) - On June 30, 2020, the company sold the assets of its Triumph Premium Finance (TPF) division for total consideration of $94.5 million, resulting in a net gain of **$9.8 million**[29](index=29&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) - Subsequent to quarter-end, the company acquired transportation factoring assets and identified that approximately **$66 million** were advances for services not yet performed[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, highlighting the impact of COVID-19, the sale of a division, and the shift to the CECL model [Overview and Recent Developments](index=54&type=section&id=Overview%20and%20Recent%20Developments) Key developments include the TPF division sale, a preferred stock offering, and a problematic acquisition of TFS assets - On July 8, 2020, the company acquired transportation factoring assets and discovered approximately **$66.0 million** were advances for unperformed services[285](index=285&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk) - The company sold its Triumph Premium Finance (TPF) division on June 30, 2020, resulting in a gain on sale of **$9.8 million**[277](index=277&type=chunk)[288](index=288&type=chunk) - On June 19, 2020, the company issued **$45.0 million** of 7.125% Series C Preferred Stock, with net proceeds of $42.4 million[290](index=290&type=chunk) - The company completed its **$50.0 million** stock repurchase program in Q1 2020, having repurchased 871,319 shares for $35.6 million during the quarter[291](index=291&type=chunk) [Impact of COVID-19](index=56&type=section&id=Impact%20of%20COVID-19) The pandemic materially increased credit loss provisions and prompted significant loan deferrals and PPP lending - The company is executing a payment deferral program for clients, with 1,320 deferrals on outstanding loan balances of **$572 million** as of June 30, 2020[307](index=307&type=chunk) - The company originated 1,937 PPP loans totaling **$219 million**, receiving approximately $7.3 million in fees from the SBA[308](index=308&type=chunk) - The ACL calculation and provision for credit losses were **significantly impacted** by changes in forecasted economic conditions due to the pandemic[297](index=297&type=chunk) - The company identified specific loan exposures considered 'at-risk' due to the pandemic: Retail Lending (**$179.9M**), Energy Lending (**$86.6M**), and Hospitality Lending (**$129.4M**)[309](index=309&type=chunk)[311](index=311&type=chunk)[312](index=312&type=chunk) [Results of Operations](index=65&type=section&id=Results%20of%20Operations) Q2 2020 net income was boosted by a one-time gain, masking a surge in credit loss expense and margin compression - Q2 2020 net income of $13.4 million included a **$9.8 million gain** on the sale of the TPF division; excluding this, adjusted net income was $6.1 million[331](index=331&type=chunk)[332](index=332&type=chunk) - Credit loss expense for Q2 2020 surged to **$13.6 million** from $3.7 million in Q2 2019, an increase of 269.7%, due to deteriorating economic forecasts[346](index=346&type=chunk)[350](index=350&type=chunk) - Net interest margin decreased by **88 basis points to 5.11%** in Q2 2020, driven by a 143 basis point reduction in loan yield[341](index=341&type=chunk)[342](index=342&type=chunk) - For the six months ended June 30, 2020, total credit loss expense was **$33.9 million**, a 622.2% increase from the prior-year period[391](index=391&type=chunk) [Financial Condition](index=86&type=section&id=Financial%20Condition) Total assets grew to $5.62 billion, while credit quality deteriorated with rising nonperforming loans and a larger ACL Loan Portfolio Composition (in thousands) | Loan Category | June 30, 2020 | Dec 31, 2019 | % Change | | :--- | :--- | :--- | :--- | | Commercial real estate | $910,261 | $1,046,961 | (13.1%) | | Commercial | $1,518,656 | $1,342,683 | 13.1% | | Mortgage warehouse | $876,785 | $667,988 | 31.3% | | Factored receivables | $561,576 | $619,986 | (9.4%) | | **Total Loans** | **$4,393,311** | **$4,194,512** | **4.7%** | Nonperforming Assets (in thousands) | Category | June 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total nonperforming loans | $55,924 | $40,613 | | Held to maturity securities | $8,140 | $0 | | Other real estate owned, net | $1,962 | $3,009 | | **Total nonperforming assets** | **$67,166** | **$44,098** | | **NPLs to Total Loans** | **1.27%** | **0.97%** | - The Allowance for Credit Losses (ACL) on loans increased to **$54.6 million (1.24% of total loans)** at June 30, 2020, from $29.1 million (0.69% of total loans) at year-end[443](index=443&type=chunk)[444](index=444&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=101&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company's primary market risk is interest rate volatility, with an asset-sensitive balance sheet position Simulated Change in Net Interest Income (NII) | Rate Shock | NII Change (Next 12 Months) - June 30, 2020 | NII Change (Next 12 Months) - Dec 31, 2019 | | :--- | :--- | :--- | | +200 bps | 8.6% | 6.3% | | +100 bps | 3.9% | 3.1% | | Flat rates | 0.0% | 0.0% | | -100 bps | (1.5%) | (3.3%) | Simulated Change in Economic Value of Equity (EVE) | Rate Shock | EVE Change (%) - June 30, 2020 | EVE Change (%) - Dec 31, 2019 | | :--- | :--- | :--- | | +200 bps | 28.2% | 13.4% | | +100 bps | 15.7% | 7.5% | | Flat rates | 0.0% | 0.0% | | -100 bps | (19.4%) | (9.9%) | [Controls and Procedures](index=102&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[501](index=501&type=chunk) - **No changes** occurred during the quarter ended June 30, 2020, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[502](index=502&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=102&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any legal proceedings expected to have a material adverse effect on its business - The company states it is **not presently party** to any legal proceedings that would have a material adverse effect on its business or financial condition[504](index=504&type=chunk) [Risk Factors](index=102&type=section&id=Item%201A.%20Risk%20Factors) A new material risk factor related to the COVID-19 pandemic has been added to existing company risks - A **new material risk factor** has been added concerning the ongoing COVID-19 pandemic, which could have a material adverse effect on the business[505](index=505&type=chunk) - Potential adverse impacts from COVID-19 include **increased credit losses**, declines in collateral values, third-party disruptions, and increased fraud risk[507](index=507&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=103&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - The report indicates '**None**' for this item[511](index=511&type=chunk) [Exhibits](index=104&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements, certifications, and XBRL data

Financial Data and Key Metrics Changes - For Q2 2020, the company reported net income of $13.4 million or $0.56 per diluted share, with adjusted diluted earnings per share at $0.25 after accounting for the gain on sale of Triumph Premium Finance assets [7] - Total credit loss expense decreased to $13.6 million from $20.3 million in the prior quarter, with credit loss expense on funded loans at $11 million [8] - The allowance for credit loss (ACL) increased to $54.6 million, representing 1.24% of loans held for investment, and 1.77% when excluding certain loan types [10] Business Line Data and Key Metrics Changes - Triumph Business Capital's factoring revenue was $21.5 million, with a 12% decrease in dollar volume of invoices purchased compared to Q2 2019 [30] - The loan portfolio experienced charge-offs of $1.1 million, with past due loans decreasing by 49 basis points to 1.5% of total loans [11] - Non-interest-bearing deposits grew by $275 million, now accounting for 28% of total deposits, a significant increase from the previous year [13] Market Data and Key Metrics Changes - The company forecasts unemployment to remain between 9% to 10% over the next four quarters, with expectations of depressed retail sales [9] - The mortgage warehouse segment saw an increase in average balances by $203 million over Q1, reaching $716 million [15] Company Strategy and Development Direction - The company aims to focus on completing PPP loan forgiveness, unwinding loan deferrals, and managing credit risk while pursuing new relationships across lending units [28] - TriumphPay is expected to reach profitability in the latter half of 2021, with a run rate payment volume target of $7 billion or more by year-end [39] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic forecast has worsened, impacting credit loss expectations and overall business performance [9][72] - The company anticipates a recovery in the transportation factoring portfolio, with expectations for margin expansion as the business rebounds [35] Other Important Information - The company completed the asset sale of Triumph Premium Finance, realizing a pre-tax net gain of $9.8 million [19] - Service charge fees were below historical levels by approximately $1 million in Q2, but this is not expected to continue in Q3 [18] Q&A Session Summary Question: Update on Triumph Business Capital and invoice purchases - Management indicated that it is difficult to set specific goals due to the correlation with real-time economic conditions, but noted that freight markets appear to be improving [45] Question: Loan growth expectations - Management expressed hope for disproportionate growth in the transportation business, while acknowledging that overall loan growth may not be significant [47] Question: TriumphPay integration progress - Management reported that COVID-19 heightened awareness of TriumphPay's value, with several top brokers in various stages of integration [49] Question: Operating expenses and expectations for Q3 - Management expects Q3 expenses to increase marginally from Q2, influenced by ongoing uncertainties and growth in TriumphPay [78] Question: Credit exposure in hospitality and restaurants - Management highlighted concerns regarding hospitality exposure, with a significant portion on deferral, while restaurant loans are less impacted [68][70]

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements for Q1 2020, reflecting a net loss primarily from increased credit loss provision [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to **$5.35 billion**, while equity declined to **$589.3 million** from repurchases and net loss Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$5,353,729** | **$5,060,297** | | Loans, net | $4,275,816 | $4,165,420 | | Total Deposits | $3,682,015 | $3,789,906 | | FHLB Advances | $850,000 | $430,000 | | **Total Stockholders' Equity** | **$589,347** | **$636,590** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2020 net loss of **$4.45 million** (or **$(0.18)** diluted EPS) primarily from a **$17.36 million** credit loss expense Q1 2020 vs. Q1 2019 Income Statement (in thousands, except per share data) | Metric | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Net Interest Income | $62,500 | $61,311 | | **Credit Loss Expense** | **$17,361** | **$1,014** | | Total Noninterest Income | $7,477 | $7,538 | | Total Noninterest Expense | $57,690 | $48,566 | | **Net Income (Loss)** | **$(4,450)** | **$14,788** | | Diluted EPS | $(0.18) | $0.55 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Q1 2020 comprehensive loss of **$11.05 million**, combining net loss and **$6.60 million** other comprehensive loss Comprehensive Income (Loss) (in thousands) | Metric | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Net Income (Loss) | $(4,450) | $14,788 | | Other Comprehensive Income (Loss) | $(6,604) | $1,463 | | **Comprehensive Income (Loss)** | **$(11,054)** | **$16,251** | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity declined to **$589.3 million** from **$636.6 million**, driven by repurchases, net loss, and OCI - Key drivers for the decrease in stockholders' equity in Q1 2020 were the purchase of treasury stock (**$35.6 million**), the net loss (**$4.45 million**), and other comprehensive loss (**$6.6 million**)[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was **$14.1 million**, with investing using **$281.7 million** and financing providing **$278.2 million**, for a **$10.5 million** net increase Summary of Cash Flows (in thousands) | Cash Flow Category | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $14,095 | $20,768 | | Net Cash from Investing Activities | $(281,744) | $(14,537) | | Net Cash from Financing Activities | $278,183 | $(69,220) | | **Net Change in Cash** | **$10,534** | **$(62,989)** | [Condensed Notes to Consolidated Financial Statements](index=10&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) Notes detail **CECL** adoption, **COVID-19** responses including loan deferrals, and **Triumph Premium Finance** assets reclassified as 'held for sale' - The company adopted the new credit loss standard, ASU 2016-13 (CECL), on January 1, 2020, recording a net reduction to retained earnings of **$1.77 million**[102](index=102&type=chunk) - In response to COVID-19, the company is executing a payment deferral program for affected clients, with **404 deferrals** on loan balances of **$233 million** as of April 15, 2020[39](index=39&type=chunk) - The company decided to sell its Triumph Premium Finance (TPF) business and transferred assets with a carrying amount of **$97.9 million** to 'assets held for sale' as of March 31, 2020[109](index=109&type=chunk)[110](index=110&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2020 net loss of **$4.5 million**, driven by increased **COVID-19** credit loss expense, detailing loan growth and pandemic responses - The company incurred a net loss of **$4.5 million**, or **$(0.18)** per diluted share, for Q1 2020, compared to net income of **$14.8 million** in Q1 2019[233](index=233&type=chunk) - The COVID-19 pandemic materially impacted the allowance for credit losses (ACL), significantly increasing the required reserve due to a darkened economic forecast[244](index=244&type=chunk) - The company agreed to sell its Triumph Premium Finance (TPF) business, reclassifying **$98.3 million** in loans to assets held for sale as of March 31, 2020[238](index=238&type=chunk) [Results of Operations](index=55&type=section&id=Results%20of%20Operations) Net interest income rose slightly, but net interest margin declined, while credit loss expense surged to **$17.4 million** due to **COVID-19** Key Performance Metrics Comparison | Metric | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Net Interest Income | $62.5M | $61.3M | | Net Interest Margin | 5.63% | 6.15% | | Credit Loss Expense | $17.4M | $1.0M | | Noninterest Expense | $57.7M | $48.6M | - The significant increase in credit loss expense was primarily due to the projected economic impact of COVID-19, accounting for approximately **$10.5 million** of the provision[296](index=296&type=chunk) [Operating Segment Results](index=62&type=section&id=Operating%20Segment%20Results) Banking segment reported a **$10.3 million** operating loss from increased credit loss expense, while Factoring segment income declined **7.9%** - The Banking segment reported an operating loss of **$10.3 million**, a swing of **$22.7 million** from the prior year, driven by a **1558% increase** in its credit loss expense[309](index=309&type=chunk) - The Factoring segment's operating income fell to **$8.1 million** from **$8.8 million** year-over-year, as yield on average net funds employed decreased from **20.58% to 18.56%**[315](index=315&type=chunk) [Financial Condition](index=65&type=section&id=Financial%20Condition) Total assets grew to **$5.35 billion**, fueled by loan growth and **FHLB** advances, despite deposit decrease, while asset quality weakened Loan Portfolio Composition (in thousands) | Loan Category | March 31, 2020 | Dec 31, 2019 | $ Change | | :--- | :--- | :--- | :--- | | Commercial | $1,412,822 | $1,342,683 | $70,139 | | Mortgage warehouse | $739,211 | $667,988 | $71,223 | | Factored receivables | $661,100 | $619,986 | $41,114 | | Commercial real estate | $985,757 | $1,046,961 | $(61,204) | | **Total Loans** | **$4,320,548** | **$4,194,512** | **$126,036** | - Nonperforming assets increased to **$58.2 million** (**1.09%** of total assets) from **$44.1 million** (**0.87%** of total assets) at December 31, 2019[336](index=336&type=chunk) - The allowance for credit losses (ACL) to total loans ratio increased significantly to **1.04%** from **0.69%** at year-end, driven by CECL adoption and COVID-19 economic forecasts[343](index=343&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=76&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) Primary market risk is interest rate volatility, with simulations showing a liability-sensitive position where a **100 bps** rate decrease significantly impacts **EVE** Simulated Change in Net Interest Income (Next 12 Months) | Rate Change | % Change in NII | | :--- | :--- | | +200 bps | +2.2% | | +100 bps | -0.3% | | -100 bps | -3.7% | Simulated Change in Economic Value of Equity (EVE) | Rate Change | % Change in EVE | | :--- | :--- | | +200 bps | +23.0% | | +100 bps | +12.8% | | -100 bps | -17.6% | [Item 4. Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were **effective** as of March 31, 2020, with internal control changes for **CECL** adoption and economic forecasting review - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the reporting period[400](index=400&type=chunk) - Changes were made to internal controls over financial reporting to accommodate the adoption of ASU 2016-13 (CECL), particularly regarding the review of third-party economic forecasts[401](index=401&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any legal proceedings expected to have a **material adverse effect** on its business or financial condition - The company is not party to any legal proceedings expected to have a **material adverse effect**[403](index=403&type=chunk) [Item 1A. Risk Factors](index=78&type=page&id=Item%201A.%20Risk%20Factors) New risk factor highlights **COVID-19** pandemic's potential for increased credit losses, client bankruptcies, operational disruptions, and cybersecurity threats - A material new risk factor has been added regarding the ongoing COVID-19 pandemic and its potential adverse effects on the business, operations, and financial condition[404](index=404&type=chunk) - Specific risks highlighted include increased credit losses, bankruptcies among clients in the transportation sector, declines in collateral values, and heightened cyber and payment fraud risk[408](index=408&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=79&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company completed its **$50 million** stock repurchase program in Q1 2020, repurchasing **871,319 shares** at an average price of **$40.81** Q1 2020 Share Repurchases | Period | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | Jan 2020 | 284,252 | $39.51 | | Feb 2020 | 587,067 | $41.44 | | **Total** | **871,319** | **$40.81** | [Item 6. Exhibits](index=80&type=section&id=Item%206.%20Exhibits) Exhibits filed with Form 10-Q include **CEO/CFO** certifications and financial data in **Inline XBRL** format - The exhibits filed with the report include Sarbanes-Oxley certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1) and interactive data files (Exhibit 101)[414](index=414&type=chunk)

Triumph Bancorp, Inc. (TBK) Q1 2020 Results Earnings Conference Call April 21, 2020 8:00 AM ET Company Participants Luke Wyse - SVP of Finance and IR Aaron Graft - Founder, Vice Chairman and CEO Bryce Fowler - Executive Vice President, Chief Financial Officer and Treasurer Todd Ritterbusch - Chief Lending Officer Conference Call Participants Brad Milsaps - Piper Sandler Brady Gailey - KBW Matt Olney - Stephens Inc. Jared Shaw - Wells Fargo Securities Nicholas Duafala - B. Riley FBR Operator Good day, and we ...

Financial Performance - The company reported a diluted loss per share of $0.18 for Q1 2020[25] - Net Interest Margin (NIM) was 5.63%[28] - Return on Average Tangible Common Equity (ROATCE) was (4.09%)[31] - Tangible Common Equity / Tangible Assets (TCE/TA) was 7.77%[30] Loan Portfolio - Total loans held for investment increased by $126 million[25] - The commercial finance portfolio increased $135.1 million, the national lending portfolio increased $61.2 million, and the community banking portfolio decreased $70.3 million[25] - Community Banking represents 47% of the total loan portfolio, Commercial Finance 32%, and National Lending 21%, totaling $4,325.1 million[41] COVID-19 Impact and Response - As of April 15th, the company executed 404 deferrals on outstanding loan balances of $233 million and had 397 additional deferral requests on outstanding loan balances of $276 million[17] - As of April 17th, the company closed or approved with the SBA, 732 PPP loans representing $158 million in funding[17] - Total exposure to industries most impacted by COVID-19 includes $195.5 million in Retail (4.52% of gross loans), $133.1 million in Energy (3.08% of gross loans), and $128.9 million in Hospitality (2.98% of gross loans)[22] Deposits - Total deposits decreased by $107.9 million, or 2.9%; however, noninterest bearing demand deposits grew $36.7 million, or 4.5%[25]