Part I [Business](index=3&type=section&id=Item%201.%20Business) Triumph Bancorp, Inc. is a Dallas-based financial holding company with **$5.06 billion** in assets as of December 31, 2019, operating through its bank subsidiary, TBK Bank, across banking, factoring, and corporate segments, subject to extensive federal and state regulation Key Financial Metrics as of December 31, 2019 | Metric | Value (USD) | | :--- | :--- | | Consolidated Total Assets | **$5.060 billion** | | Total Loans Held for Investment | **$4.195 billion** | | Total Deposits | **$3.790 billion** | | Total Stockholders' Equity | **$636.6 million** | - The company operates through three reportable segments: **Banking (69% of total revenue)**, **Factoring (30%)**, and **Corporate (1%)** for the year ended December 31, 2019[10](index=10&type=chunk) - The company's business model integrates traditional community banking, national commercial finance (with a focus on the transportation industry), and national lending lines like mortgage warehouse and premium finance[9](index=9&type=chunk) - As of December 31, 2019, the company had **1,107 full-time equivalent employees**[94](index=94&type=chunk) [Principal Products and Services](index=3&type=section&id=Item%201.%20Business%23Principal%20Products%20and%20Services) The company offers community banking, specialized commercial finance for the transportation sector, and national lending products - Community banking services are offered through a network of retail branches in Illinois, Iowa, Colorado, Kansas, and New Mexico, with a corporate office and deposit-gathering branch in Dallas, Texas[12](index=12&type=chunk) - The Commercial Finance division has a significant focus on the transportation industry, with transportation factoring constituting approximately **77% of the total factoring portfolio** and equipment lending to transportation clients being **75% of the total equipment lending portfolio** as of December 31, 2019[21](index=21&type=chunk)[23](index=23&type=chunk) - The TriumphPay platform, a proprietary payment solution for the freight industry, generates fee income and additional factored receivables through its "Quick Pay" option[25](index=25&type=chunk) - National Lending includes mortgage warehouse facilities, which had an outstanding balance of **$668 million** as of December 31, 2019, across 17 customers[31](index=31&type=chunk) [Credit Risk Management](index=6&type=section&id=Item%201.%20Business%23Credit%20Risk%20Management) Triumph manages credit risk through disciplined underwriting, tiered loan authorities, and proprietary scoring models - The underwriting process involves a tiered system of loan authorities, with larger transactions requiring approval from management-level or executive loan committees[38](index=38&type=chunk) - For factoring, the company uses a proprietary web-based application and scoring model to manage high volumes of invoice purchase requests and monitors concentration limits for individual account debtors[37](index=37&type=chunk) - A proprietary risk management program assigns a daily risk score to each factoring client to determine monitoring levels and servicing protocols, aiming to control fraud and credit risk[41](index=41&type=chunk) [Supervision and Regulation](index=7&type=section&id=Item%201.%20Business%23Supervision%20and%20Regulation) Triumph, as a financial holding company, is extensively regulated by federal and state authorities, adhering to capital and consumer protection laws - The company has elected to be a financial holding company (FHC), allowing it to engage in a broader range of financial activities, contingent on maintaining "well-capitalized" and "well-managed" status[50](index=50&type=chunk) - The company and its bank subsidiary are subject to Basel III capital rules, requiring minimum ratios for CET1, Tier 1, and Total Capital, plus a capital conservation buffer, with both entities exceeding "well-capitalized" levels as of year-end 2019[57](index=57&type=chunk)[60](index=60&type=chunk) - TBK Bank, a Texas state savings bank, is regulated by the FDIC and the Texas Department of Savings and Mortgage Lending (TDSML), which restricts its ability to pay dividends and enforces safety and soundness standards[71](index=71&type=chunk)[73](index=73&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including interest rate volatility, credit defaults, transportation industry concentration, operational challenges, and regulatory changes - A substantial portion of revenues (estimated at **30-35% in 2019**) is derived from the transportation industry, making the company vulnerable to economic downturns, regulatory changes, or other negative factors impacting this sector[107](index=107&type=chunk) - The upcoming transition from LIBOR to alternative reference rates presents considerable risk and cost, as it will affect pricing models, valuation tools, and contracts for numerous financial instruments[102](index=102&type=chunk)[104](index=104&type=chunk) - The adoption of the new CECL accounting standard (ASU 2016-13) effective January 1, 2020, will require estimating credit losses over the life of financial instruments and may increase the volatility of the allowance for loan losses[125](index=125&type=chunk) - The company is subject to extensive regulation, and changes in laws or their interpretation by agencies like the Federal Reserve, FDIC, and CFPB could significantly increase costs and limit business opportunities[162](index=162&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) [Unresolved Staff Comments](index=35&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[195](index=195&type=chunk) [Properties](index=35&type=section&id=Item%202.%20Properties) The company's corporate office is in Dallas, Texas, with its TBK Bank subsidiary operating 65 owned and leased branches and loan offices across six states - The corporate headquarters is located at 12700 Park Central Drive, Suite 1700, Dallas, Texas 75251[196](index=196&type=chunk) - As of year-end 2019, TBK Bank operated ten branches in the Quad Cities area (Iowa/Illinois), eight in northern/central Illinois, seven in Colorado and three in New Mexico (Mountain Division), and thirty in Colorado and two in Kansas (Western Division), plus several loan production offices[197](index=197&type=chunk) [Legal Proceedings](index=35&type=section&id=Item%203.%20Legal%20Proceedings) The company is party to various litigation matters incidental to its business but does not believe any current proceedings will have a material adverse effect - The company is not presently party to any legal proceedings expected to have a material adverse effect on its business, financial condition, or results of operations[199](index=199&type=chunk) [Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[200](index=200&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=36&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ under "TBK"; it retains earnings for growth, not paying dividends, and actively repurchased over **2 million shares** in 2019 - The company's common stock is listed on the NASDAQ Global Select Market under the symbol "TBK", with **24,605,453 shares outstanding** and **366 stockholders of record** as of February 6, 2020[203](index=203&type=chunk) - The company does not intend to pay cash dividends on its common stock in the foreseeable future, planning to retain all earnings to support operations and finance growth[204](index=204&type=chunk) Issuer Purchases of Equity Securities (Q4 2019) | Period | Total Shares Purchased | Average Price Paid per Share (USD) | Total Shares Purchased as Part of Program | Maximum Dollar Value that May Yet Be Purchased (USD) | | :--- | :--- | :--- | :--- | :--- | | Oct 2019 | — | $— | — | **$50,000,000** | | Nov 2019 | **114,344** | **$35.81** | **114,344** | **$45,902,000** | | Dec 2019 | **278,213** | **$37.05** | **278,213** | **$35,586,000** | | **Total** | **392,557** | **$36.69** | **392,557** | **$35,586,000** | [Selected Financial Data](index=39&type=section&id=Item%206.%20Selected%20Financial%20Data) This section summarizes five years of historical consolidated financial data, including income statement, balance sheet, per-share metrics, and non-GAAP reconciliations for operational performance insights Selected Historical Financial Data (2017-2019) | (In thousands, except per share) | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **Income Statement Data** | | | | | Net Interest Income | **$255,903** | **$227,050** | **$155,684** | | Provision for Loan Losses | **$7,942** | **$16,167** | **$11,628** | | Noninterest Income | **$31,569** | **$22,970** | **$40,656** | | Noninterest Expense | **$204,084** | **$167,353** | **$123,614** | | Net Income | **$58,544** | **$51,708** | **$36,220** | | **Balance Sheet Data (End of Period)** | | | | | Total Assets | **$5,060,297** | **$4,559,779** | **$3,499,033** | | Loans Held for Investment, net | **$4,165,420** | **$3,581,073** | **$2,792,108** | | Total Deposits | **$3,789,906** | **$3,450,349** | **$2,621,348** | | Total Stockholders' Equity | **$636,590** | **$636,607** | **$391,698** | | **Per Share Data** | | | | | Diluted EPS | **$2.25** | **$2.03** | **$1.81** | | Book Value per Share | **$25.50** | **$23.62** | **$18.35** | | Tangible Book Value per Share (Non-GAAP) | **$17.88** | **$16.22** | **$15.29** | - The company utilizes non-GAAP financial measures such as 'Tangible common stockholders' equity', 'Adjusted diluted earnings per common share', and 'Adjusted efficiency ratio' to supplement its GAAP reporting and provide a clearer understanding of core operational performance, excluding items like M&A costs[218](index=218&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2019, net income rose to **$58.5 million**, driven by strong loan growth and increased net interest income, despite net interest margin compression due to higher funding costs, with total assets reaching **$5.06 billion** 2019 vs. 2018 Performance | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Net Income to Common Stockholders | **$58.5 million** | **$51.1 million** | | Diluted EPS | **$2.25** | **$2.03** | | Return on Average Assets | **1.23%** | **1.33%** | | Return on Average Common Equity | **9.04%** | **9.27%** | - Organic loan growth totaled **$585.9 million** in 2019, with significant increases in national lending lines (up **119.8%**) and commercial finance loans (up **5.6%**)[230](index=230&type=chunk) - The TriumphPay platform processed **$975.1 million** in payments in 2019, a significant increase from **$328.4 million** in 2018[113](index=113&type=chunk)[233](index=233&type=chunk) - The company repurchased **2,080,791 shares** of its common stock for a total of **$64.4 million** during 2019[237](index=237&type=chunk) [Results of Operations](index=47&type=section&id=Item%207.%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Results%20of%20Operations) In 2019, net interest income increased **12.7%** to **$255.9 million**, despite a **43 bps** net interest margin decline, while noninterest income grew **37.4%** and noninterest expense rose **21.9%** due to growth Net Interest Income and Margin Analysis (2019 vs. 2018) | Metric | 2019 | 2018 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | **$255.9M** | **$227.1M** | **+12.7%** | | Net Interest Margin | **5.92%** | **6.35%** | **-43 bps** | | Yield on Earning Assets | **7.20%** | **7.35%** | **-15 bps** | | Cost of Interest-Bearing Liabilities | **1.66%** | **1.33%** | **+33 bps** | - The provision for loan losses decreased by **$8.3 million** to **$7.9 million** in 2019, attributed to lower net charge-offs, reduced specific reserves, and a shift in the loan portfolio mix toward products with lower reserve requirements[259](index=259&type=chunk)[260](index=260&type=chunk) - Noninterest expense increased by **$36.7 million**, primarily due to a **$22.7 million** rise in salaries and benefits and a **$4.2 million** increase in occupancy costs, reflecting a larger workforce and infrastructure from recent acquisitions and organic growth[264](index=264&type=chunk)[265](index=265&type=chunk) [Financial Condition](index=57&type=section&id=Item%207.%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Financial%20Condition) As of December 31, 2019, total assets grew to **$5.06 billion**, driven by a **$585.9 million** increase in loans to **$4.195 billion**, while asset quality remained stable, deposits rose to **$3.79 billion**, and borrowings increased Loan Portfolio Composition (December 31, 2019) | Loan Category | Balance (in millions) | % of Total | | :--- | :--- | :--- | | Commercial Real Estate | **$1,047.0** | **25%** | | Commercial | **$1,342.7** | **31%** | | Mortgage Warehouse | **$668.0** | **16%** | | Factored Receivables | **$620.0** | **15%** | | Other | **$516.8** | **13%** | | **Total Loans** | **$4,194.5** | **100%** | Asset Quality Ratios (As of Dec 31) | Ratio | 2019 | 2018 | | :--- | :--- | :--- | | Nonperforming Assets to Total Assets | **0.87%** | **0.84%** | | Nonperforming Loans to Total Loans | **0.97%** | **1.00%** | | ALLL to Total Loans | **0.69%** | **0.76%** | - Total deposits increased by **$339.6 million** to **$3.790 billion**, with growth primarily in certificates of deposit and non-interest bearing demand deposits[322](index=322&type=chunk) - Total borrowings increased, driven by a **$100 million** increase in FHLB advances to **$430 million** and the issuance of **$39.5 million** in new subordinated notes[325](index=325&type=chunk)[327](index=327&type=chunk) [Critical Accounting Policies and Estimates](index=68&type=section&id=Item%207.%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Critical%20Accounting%20Policies%20and%20Estimates) The Allowance for Loan and Lease Losses (ALLL) is the most critical accounting estimate, involving significant judgment; CECL adoption on January 1, 2020, is expected to reduce retained earnings by **$1.5 million** - The Allowance for Loan and Lease Losses (ALLL) is considered the most critical accounting policy, requiring complex and subjective judgments about probable incurred credit losses[342](index=342&type=chunk)[344](index=344&type=chunk) - Upon adopting the CECL standard on Jan 1, 2020, the company anticipates a combined increase of approximately **$1.9 million** to its allowance for credit losses and reserve for unfunded commitments, leading to an expected after-tax reduction in retained earnings of about **$1.5 million**[347](index=347&type=chunk)[349](index=349&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=70&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate volatility, managed by balance sheet structuring; sensitivity analysis indicates asset-sensitivity, with a **+100 bps** rate shock projected to increase NII by **3.1%** and EVE by **7.5%** Simulated Change in Net Interest Income (NII) | Rate Shock | Change in NII (Next 12 Months) | | :--- | :--- | | **+400 bps** | **+12.5%** | | **+200 bps** | **+6.3%** | | **+100 bps** | **+3.1%** | | **-100 bps** | **-3.3%** | Simulated Change in Economic Value of Equity (EVE) | Rate Shock | Change in EVE (%) | | :--- | :--- | | **+400 bps** | **+22.4%** | | **+200 bps** | **+13.4%** | | **+100 bps** | **+7.5%** | | **-100 bps** | **-9.9%** | [Financial Statements and Supplementary Data](index=72&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2019, with Crowe LLP issuing an unqualified opinion, noting ALLL qualitative loss factors as a Critical Audit Matter due to subjective judgments - The independent auditor, Crowe LLP, issued an unqualified opinion on the financial statements and internal control over financial reporting as of December 31, 2019[360](index=360&type=chunk) - The auditor identified the 'Allowance for Loan and Lease Losses – Qualitative Loss Factors' as a Critical Audit Matter due to the high degree of management judgment and subjectivity involved in its determination[366](index=366&type=chunk)[369](index=369&type=chunk) [Note 2 — Business Combinations and Divestitures](index=90&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Note%202%20%E2%80%94%20Business%20Combinations%20and%20Divestitures) In 2018, the company completed three significant acquisitions, including FBD, SCC, and ICC's factoring business, adding substantial loans, deposits, and goodwill, while also divesting THF and TCA - Acquired FBD and SCC effective September 8, 2018, adding a combined **$287.8 million** in loans, **$674.7 million** in deposits, and recording **$72.1 million** in goodwill[476](index=476&type=chunk)[477](index=477&type=chunk) - Acquired the factoring business of ICC on June 2, 2018, adding **$131.0 million** in factored receivables and recording **$43.0 million** in goodwill, with the deal including contingent consideration valued at **$20.0 million** initially[485](index=485&type=chunk)[487](index=487&type=chunk) - Sold the assets of Triumph Healthcare Finance on March 16, 2018, resulting in a net pre-tax gain of **$1.1 million**[490](index=490&type=chunk)[492](index=492&type=chunk) [Note 4 — Loans and Allowance for Loan and Lease Losses](index=100&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Note%204%20%E2%80%94%20Loans%20and%20Allowance%20for%20Loan%20and%20Lease%20Losses) At year-end 2019, gross loans totaled **$4.195 billion**, diversified across commercial, real estate, and mortgage warehouse, with **ALLL at $29.1 million** and **nonperforming loans at $40.6 million**, actively managed through risk rating systems Allowance for Loan and Lease Losses (ALLL) Activity - 2019 | (In thousands) | Amount | | :--- | :--- | | Beginning Balance (Jan 1, 2019) | **$27,571** | | Provision for Loan Losses | **$7,942** | | Gross Charge-offs | **($7,484)** | | Gross Recoveries | **$1,063** | | **Ending Balance (Dec 31, 2019)** | **$29,092** | Credit Quality Indicators (as of Dec 31, 2019) | Metric | Amount (in thousands) | % of Total Loans | | :--- | :--- | :--- | | Nonaccrual Loans | **$36,054** | **0.86%** | | Total Nonperforming Loans | **$40,613** | **0.97%** | | Loans Past Due 30-89 Days | **$51,589** | **1.23%** | - The loan portfolio has geographic concentrations, with **70% of gross loans** (excluding factored receivables) located in Texas (**27%**), Colorado (**23%**), Illinois (**13%**), and Iowa (**7%**)[521](index=521&type=chunk) [Note 18 — Regulatory Matters](index=124&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Note%2018%20%E2%80%94%20Regulatory%20Matters) The company and TBK Bank are subject to regulatory capital requirements and were categorized as "well capitalized" as of December 31, 2019, exceeding all minimum capital ratios including the conservation buffer Triumph Bancorp, Inc. Capital Ratios (as of Dec 31, 2019) | Ratio | Actual | Minimum for Adequacy | | :--- | :--- | :--- | | Total Capital (to risk-weighted assets) | **12.8%** | **8.0%** | | Tier 1 Capital (to risk-weighted assets) | **10.3%** | **6.0%** | | Common Equity Tier 1 Capital | **9.5%** | **4.5%** | | Tier 1 Capital (to average assets) | **10.0%** | **4.0%** | - TBK Bank, SSB, the subsidiary bank, exceeded all thresholds to be categorized as "well capitalized" under the prompt corrective action provisions[647](index=647&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=135&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[693](index=693&type=chunk) [Controls and Procedures](index=135&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2019, with no material changes in Q4 2019 - Based on an evaluation as of the end of the period, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[694](index=694&type=chunk) - Management determined that the company maintained effective internal control over financial reporting as of December 31, 2019[697](index=697&type=chunk) [Other Information](index=135&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[698](index=698&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, Security Ownership, and Accountant Fees](index=136&type=section&id=Items%2010-14) Information for Items 10 through 14, covering governance, compensation, security ownership, and related party transactions, is incorporated by reference from the 2020 Proxy Statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the Registrant's Definitive Proxy Statement for the 2020 Annual Meeting of Stockholders[701](index=701&type=chunk)[702](index=702&type=chunk)[703](index=703&type=chunk)[704](index=704&type=chunk)[705](index=705&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=137&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists documents filed as part of the annual report, including consolidated financial statements from Item 8, a comprehensive list of exhibits, and required SEC certifications - The financial statements listed in Item 8 are filed as part of this report[709](index=709&type=chunk) - A list of **30+ exhibits** is provided, including key agreements related to M&A, debt issuance, and executive compensation plans[710](index=710&type=chunk)[712](index=712&type=chunk)[713](index=713&type=chunk) - Certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act are included as exhibits[713](index=713&type=chunk)

Financial Data and Key Metrics Changes - For Q4 2019, the company reported net income of $16.7 million, or $0.66 per diluted share, indicating strong financial performance [7] - Provision expense for the quarter was modest at $382,000, attributed to a slight decline in total loans and a change in loan mix [8] - The company issued $39.5 million of fixed to floating subordinated notes due 2029, with plans to use most proceeds for share repurchases [9] - Net charge-offs were 8 basis points in Q4 and 17 basis points for the full year 2019, indicating good credit quality [11] Business Line Data and Key Metrics Changes - Non-interest bearing deposits grew by $55 million in Q4 and are up $125 million since increasing deposit gathering efforts [13] - TriumphPay processed 442,000 invoices in Q4, with payments totaling $475 million, representing a 150% increase from the prior quarter and a 286% increase from Q4 2018 [23] - Total factoring revenue at Triumph Business Capital was relatively flat at $26 million, with the dollar volume of invoices purchased holding at $1.5 billion [25] Market Data and Key Metrics Changes - The company anticipates a 4% to 6% decline in total revenue from Q4 2019 in Q1 2020, consistent with seasonal patterns [31][92] - The transportation market is expected to continue working through excess carrier capacity created in 2018, with further attrition within the small trucking segment [30] Company Strategy and Development Direction - The company is focused on improving operating efficiency and plans to continue investing in its transportation FinTech platform, which is seen as a substantial part of its future growth [14] - The company aims to repurchase shares as a high internal rate of return investment, indicating a commitment to returning capital to shareholders [53] Management's Comments on Operating Environment and Future Outlook - Management expressed a somewhat gloomy outlook for the first two quarters of 2020 due to excess capacity in the transportation market [50] - The company expects to see continued growth in its mortgage warehouse business, although it may stabilize if mortgage activity declines [42] Other Important Information - The company plans to disclose the impact of CECL adoption in its 10-K, estimating an increase in the allowance on the funded loan portfolio by approximately $300,000 [10] - Management noted that credit standards have tightened over the last 12 months, indicating a proactive approach to risk management [11] Q&A Session Summary Question: Margin outlook for the year - Management indicated that NIM compression in Q4 was due to disproportionate growth in the mortgage warehouse business, which is lower margin [37] Question: Growth in mortgage warehouse business - Management noted that growth is due to gaining market share with existing clients rather than a significant increase in the number of relationships [39] Question: TriumphPay invoice processing - Management stated that QuickPay penetration is not disclosed, but the long-term goal is a 20% penetration rate [43] Question: EPS guidance for 2020 - Management suggested that the bottom end of the previously provided EPS range of $2.25 to $2.50 is more likely, depending on transportation market conditions [49] Question: Share buyback strategy - Management emphasized that the share buyback program is not solely to defend stock price but is viewed as a high-return investment opportunity [52] Question: TriumphPay client onboarding - Management explained that revenue from new clients typically begins within the first 90 days, with initial expenses related to onboarding [85]

Q4 2019 EARNINGS RELEASE January 21, 2020 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," "intends," "plans," ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from to Commission File Number 001-36722 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, 2019 TRIUMPH BANCORP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Texas 20-0477066 (I.R.S. Employer Identification No.) 12700 Park Central Drive, Sui ...

Triumph Bancorp, Inc. (TBK) Q3 2019 Earnings Conference Call October 17, 2019 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 Conference Call Participants Brady Gailey – KBW Brad Milsaps – Sandler O’Neill Gary Tenner – D.A. Davidson Matt Olney – Stephens Steve Moss – B. Riley FBR Timur Braziler – Wells Fargo Operator Good ...

Financial Performance - Triumph Bancorp's diluted earnings per share for Q3 2019 were $0.56[22] - Total loans held for investment portfolio grew by $373.5 million, a 9.7% increase[22, 23] - Deposit growth reached $38.9 million, representing a 1.1% increase, with non-interest bearing demand deposits growing by $14.3 million[22] - The net interest margin (NIM) was 5.85% in Q3 2019[24] - The company repurchased 850,093 shares of common stock at an average price of $29.38, totaling $25.0 million[25] Loan Portfolio - Total loans amounted to $4.2 billion[8] - Community banking loans accounted for 53% of the total portfolio, totaling $2,211.2 million[33] - Commercial finance loans represented 30% of the portfolio, amounting to $1,276.1 million[33] - National lending comprised 17% of the total loans, with a value of $729.6 million[33] Triumph Business Capital Factoring - Triumph Business Capital's client portfolio mix is primarily transportation (83%) with the remaining 17% in non-transportation[44] - The factoring yield in the current quarter was 18.23%[45] - The average annual charge-off rate for Triumph Business Capital factoring over the past 3 years was 0.36%[45] Transportation Finance - The company estimates that it purchases approximately 10% of the available invoices from its ~$60 billion target market[54]

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 June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36722 TRIUMPH BANCORP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organiza ...

Financial Data and Key Metrics Changes - For Q2 2019, the company reported net income of $12.7 million or $0.48 per diluted share, indicating average to below-average financial returns [6] - Loans held for investment increased by $223 million or 6% in Q2 [8] - Total deposits rose by $345 million or 10% in the second quarter [13] - Net interest margin declined by 16 basis points to 5.99% [16] - Non-performing assets to total assets increased by 2 basis points to 86 basis points [16] Business Line Data and Key Metrics Changes - The community bank portfolio grew by $54 million or 3%, primarily driven by C&I lending [9] - The commercial finance portfolio grew by $78 million or 7% despite soft growth in transportation factoring [10] - Mortgage warehouse lending saw a $62 million increase in average balances, a 26% rise over the prior quarter [12] - Total factoring revenue increased by $1 million quarter-over-quarter or 4% to $26 million, driven by a 6% increase in purchases to $1.4 billion [21] Market Data and Key Metrics Changes - The spot market rate per mile continued to decline from late 2018 levels, with no typical seasonal rebound observed in Q2 [18] - The average transportation invoice size decreased by $49 to $1,492 or 3% [22] - Active clients in transportation factoring increased by 73 to a total of 6,455 during Q2 [24] Company Strategy and Development Direction - The company is focused on generating high-quality growth rather than growth for its own sake, aiming for returns on capital at $5 billion to $7 billion in assets [30] - The company plans to continue repurchasing shares if the stock remains undervalued, with a second $25 million repurchase program authorized [28] - TriumphPay is expected to be profitable in 2020 and significantly impact 2021 performance, with a strong pipeline of freight brokers [27] Management's Comments on Operating Environment and Future Outlook - Management believes the current softness in the spot market is tied to a supply/demand imbalance rather than a cyclical downturn [19] - The company remains committed to the trucking business for the long term, expecting continued demand for trucking services [20] - Management anticipates loan growth of $500 million to $700 million for the full year, focusing on the most profitable opportunities [38] Other Important Information - Total expenses for Q2 were $50.7 million, better than the estimated $51.5 million [16] - The company is evaluating the implementation of a dividend while maintaining excess capital for potential M&A opportunities [29] Q&A Session Summary Question: Average invoice size trend and loan growth expectations - Management noted that the average invoice size has been declining but expects it could stabilize in the second half of the year, maintaining loan growth expectations of $500 million to $700 million for 2019 [35][38] Question: TCE ratio and buyback strategy - Management indicated that while the TCE ratio decreased to 9.8%, they have room to complete the buyback plan and are focused on improving their deposit network [39][41] Question: Participation in loans and fee income generation - Management discussed plans to participate in loans to manage exposure and generate fee income, with expectations for this to materialize in the next 12 months [45] Question: Agricultural exposure and credit trends - Management confirmed agricultural exposure is just under $300 million, with a focus on corn farming and a cautious approach to monitoring relationships [46][48] Question: Net interest margin and deposit costs - Management expects to lower deposit costs gradually, with a focus on maintaining a strong net interest margin through profitable business lines [50][51] Question: Client acquisition pace and market share - Management stated that while new client additions have slowed, they continue to capture market share and maintain a strong pipeline for future growth [52][54] Question: TriumphPay and larger carriers - Management is optimistic about onboarding larger carriers to TriumphPay, expecting significant growth in the coming quarters [61]

Rethink Vanilla. RELEASE July 17, 2019 Q2 2019 EARNINGS ╬ TRIUMPH 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," "like ...

Financial Performance - For the three months ended March 31, 2019, net income available to common stockholders was $14.8 million, or $0.55 per diluted share, compared to $11.9 million, or $0.56 per diluted share for the same period in 2018[160]. - Net income for the three months ended March 31, 2019, was $14.8 million, an increase of $2.7 million from $12.1 million for the same period in 2018[180]. - Adjusted net income for the three months ended March 31, 2018, was $11.1 million, compared to $14.8 million for the same period in 2019, reflecting a $3.7 million increase[181]. - Total stockholders' equity increased by $9.6 million during the three months ended March 31, 2019, primarily due to net income for the period[163]. - The return on average common equity was 9.30% and the return on average assets was 1.33% for the three months ended March 31, 2019[160][172]. Assets and Liabilities - As of March 31, 2019, the company had total assets of $4.530 billion, total loans held for investment of $3.613 billion, total deposits of $3.314 billion, and total stockholders' equity of $646.2 million[157]. - Total assets as of March 31, 2019, were $4,529,783 thousand, a slight decrease from $4,559,779 thousand at the end of 2018[174]. - Total liabilities decreased by $40 million to $3.884 billion as of March 31, 2019, compared to $3.923 billion at December 31, 2018[255]. - Total deposits decreased by $135.9 million, or 3.9%, to $3.314 billion as of March 31, 2019, primarily due to decreases in all deposit products except for savings deposits and certificates of deposit[256]. Loan Portfolio - The company's commercial finance product lines decreased by $69.3 million, or 5.5%, to $1.187 billion as of March 31, 2019, constituting 33% of the total loan portfolio[158][161]. - Average total loans increased to $3.54 billion for the three months ended March 31, 2019, up from $2.77 billion in the same period of 2018[186]. - Outstanding loans increased by $4.2 million from December 31, 2018, compared to a $63.1 million increase during the same period in 2018[199]. - The average balance of higher yielding commercial finance loans increased by $244.8 million, or 25.8%, from $949.9 million for the three months ended March 31, 2018 to $1.195 billion for the same period in 2019[188]. - The ratio of nonperforming loans to total loans improved to 0.95% as of March 31, 2019, down from 1.00% a year earlier[174]. Income and Expenses - Interest income for the three months ended March 31, 2019, was $73.3 million, compared to $54.1 million for the same period in 2018[172]. - Net interest income increased by $14.2 million, contributing to the overall growth in adjusted net income[181]. - Total noninterest expense rose by $14.5 million, or 42.7%, from $34.0 million to $48.6 million for the same period[202]. - Salaries and employee benefits expenses increased by $7.0 million, or 36.3%, due to a significant increase in workforce from acquisitions[203]. - Noninterest income increased by $2.4 million, or 45.7%, from $5.2 million to $7.5 million for the three months ended March 31, 2019[200]. Capital and Equity - Total stockholders' equity increased to $646,216 thousand as of March 31, 2019, compared to $636,607 thousand at the end of 2018[179]. - The company repurchased 247,312 shares at an average price of $30.51, totaling $7.6 million under its stock repurchase program during the three months ended March 31, 2019[165]. - The allowance for loan and lease losses (ALLL) was $27.6 million at March 31, 2019, representing an ALLL to total loans ratio of 0.76%[197]. - The company is subject to various regulatory capital requirements, with all carrying value of $39.2 million allowed in the calculation of Tier I capital as of March 31, 2019[265][271]. Interest Rate Risk - The principal objective of asset and liability management is to evaluate interest rate risk while maximizing net income and preserving adequate levels of liquidity and capital[281]. - As of March 31, 2019, a 400 basis points increase in interest rates is projected to result in a 9.1% increase in net interest income over the following 12 months[285]. - The company emphasizes the origination of shorter duration and variable rate loans to mitigate negative exposure to interest rate increases[286]. - A 100 basis points increase in interest rates is expected to yield a 1.4% increase in net interest income over the following 12 months as of March 31, 2019[285]. - The calculations of interest rate risk do not account for management actions that may be taken in response to anticipated interest rate changes[285].