DALLAS, April 17, 2019 (GLOBE NEWSWIRE) -- Triumph Bancorp, Inc. (Nasdaq: TBK) (“Triumph”) today announced earnings and operating results for the first 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 First Quarter Highlights and Recent Developments

• For the first quarter of 2019, net income available to common stockholders was $14.8 million. Diluted earnings per share were $0.55. 
• Net interest margin (“NIM”) was 6.15% for the quarter ended March 31, 2019. 
• Total loans held for investment increased $4.2 million, or 0.1%, to $3.613 billion at March 31, 2019. Average loans for the quarter increased $2.6 million, or 0.1%, to $3.535 billion. Loan growth was consistent with historical first quarter results, which is primarily driven by seasonality in our transportation factoring business.
• Triumph Business Capital grew period-end clients to 6,382 clients, which is an increase of 191 clients, or 3.1%. The total dollar value of invoices purchased for the quarter ended March 31, 2019 was $1.325 billion with an average invoice price of $1,678. 
• At March 31, 2019, there were 130 clients utilizing the TriumphPay platform, which is an increase of 17 clients, or 15.0%. For the quarter ended March 31, 2019, TriumphPay processed 114,066 invoices paying 22,932 distinct carriers a total of $141.0 million.
• During the quarter ended March 31, 2019, the Company repurchased 247,312 shares into treasury stock under its stock repurchase program at an average price of $30.51, for a total of $7.6 million.

Balance Sheet

Total loans held for investment were $3.613 billion at March 31, 2019. Our commercial finance loans, which comprise 33% of the loan portfolio, were $1.187 billion at March 31, 2019, compared to $1.256 billion at December 31, 2018, a decrease of $69.3 million, or 5.5% in the first quarter of 2019.

Total deposits were $3.314 billion at March 31, 2019, a decrease of $135.9 million or 3.9% in the first quarter of 2019.  Non-interest-bearing deposits accounted for 20% of total deposits and non-time deposits accounted for 61% of total deposits at March 31, 2019. 

Net Interest Income

We earned net interest income for the quarter ended March 31, 2019 of $61.3 million compared to $64.9 million for the quarter ended December 31, 2018.

Yields on loans for the quarter ended March 31, 2019 were down 15 bps from the prior quarter to 7.99%. The average cost of our total deposits was 0.99% for the quarter ended March 31, 2019 compared to 0.91% for the quarter ended December 31, 2018, on an annualized basis. 

Asset Quality

Non-performing assets remained flat at 0.84% of total assets at March 31, 2019 and December 31, 2018.  The ratio of past due to total loans decreased to 2.33% at March 31, 2019 from 2.41% at December 31, 2018. We recorded total net charge-offs of $1.0 million, or 0.03% of average loans, for the quarter ended March 31, 2019 compared to net charge-offs of $1.6 million, or 0.05% of average loans, for the quarter ended December 31, 2018. 

We recorded a provision for loan losses of $1.0 million for the quarter ended March 31, 2019 compared to a provision of $1.9 million for the quarter ended December 31, 2018. From December 31, 2018 to March 31, 2019, our ALLL remained flat at $27.6 million or 0.76% of total loans. 

Non-Interest Income and Expense

We earned non-interest income for the quarter ended March 31, 2019 of $7.5 million compared to $6.8 million for the quarter ended December 31, 2018.

For the quarter ended March 31, 2019, non-interest expense totaled $48.6 million, compared to $47.0 million for the quarter ended December 31, 2018. 

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, April 18, 2019. Dan Karas, 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/tbk190418.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 and commercial finance products through its bank subsidiary, TBK Bank, SSB. www.triumphbancorp.com

Forward-Looking Statements

This press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; risks related to the integration of acquired businesses (including our acquisitions of First Bancorp of Durango, Inc., Southern Colorado Corp., and the operating assets of Interstate Capital Corporation and certain of its affiliates) and any future acquisitions; changes in management personnel; interest rate risk; concentration of our factoring services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets, or deferred tax assets; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally, or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities, and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of the Federal Deposit Insurance Corporation insurance and other coverages; failure to receive regulatory approval for future acquisitions; and increases in our capital requirements.

While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2019.

Non-GAAP Financial Measures

This press release includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided at the end of this press release.

The following table sets forth key metrics used by Triumph to monitor its operations. Footnotes in this table can be found in our definitions of non-GAAP financial measures at the end of this document.

		As of and for the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)		2019				2018				2018				2018				2018
Financial Highlights:
Total assets		$	4,529,783			$	4,559,779			$	4,537,102			$	3,794,631			$	3,405,010
Loans held for investment		$	3,612,869			$	3,608,644			$	3,512,143			$	3,196,462			$	2,873,985
Deposits		$	3,314,440			$	3,450,349			$	3,439,049			$	2,624,942			$	2,533,498
Net income available to common stockholders		$	14,788			$	18,085			$	8,975			$	12,192			$	11,878
Performance Ratios - Annualized:
Return on average assets			1.33	%			1.60	%			0.90	%			1.37	%			1.43	%
Return on average total equity			9.30	%			11.35	%			5.88	%			8.53	%			12.20	%
Return on average common equity			9.30	%			11.40	%			5.85	%			8.54	%			12.30	%
Return on average tangible common equity (1)			13.43	%			16.73	%			7.57	%			9.95	%			14.75	%
Yield on loans(2)			7.99	%			8.14	%			8.33	%			8.09	%			7.65	%
Cost of interest bearing deposits			1.24	%			1.15	%			1.08	%			0.93	%			0.86	%
Cost of total deposits			0.99	%			0.91	%			0.85	%			0.73	%			0.68	%
Cost of total funds			1.28	%			1.14	%			1.16	%			1.06	%			0.95	%
Net interest margin(2)			6.15	%			6.34	%			6.59	%			6.36	%			6.06	%
Net non-interest expense to average assets			3.70	%			3.55	%			4.19	%			3.59	%			3.43	%
Adjusted net non-interest expense to average assets (1)			3.70	%			3.55	%			3.62	%			3.47	%			3.56	%
Efficiency ratio			70.54	%			65.52	%			72.15	%			64.26	%			65.09	%
Adjusted efficiency ratio (1)			70.54	%			65.52	%			63.49	%			62.38	%			66.45	%
Asset Quality:(3)
Past due to total loans			2.33	%			2.41	%			2.23	%			2.54	%			2.41	%
Non-performing loans to total loans			0.95	%			1.00	%			1.13	%			1.43	%			1.41	%
Non-performing assets to total assets			0.84	%			0.84	%			0.93	%			1.28	%			1.47	%
ALLL to non-performing loans			80.70	%			76.47	%			68.82	%			53.57	%			49.52	%
ALLL to total loans			0.76	%			0.76	%			0.78	%			0.77	%			0.70	%
Net charge-offs to average loans			0.03	%			0.05	%			0.12	%			0.01	%			0.05	%
Capital:
Tier 1 capital to average assets(4)			11.32	%			11.08	%			11.75	%			15.00	%			11.23	%
Tier 1 capital to risk-weighted assets(4)			11.76	%			11.49	%			11.16	%			14.68	%			11.54	%
Common equity tier 1 capital to risk-weighted assets(4)			10.81	%			10.55	%			9.96	%			13.32	%			10.05	%
Total capital to risk-weighted assets(4)			13.62	%			13.35	%			13.05	%			16.73	%			13.66	%
Total equity to total assets			14.27	%			13.96	%			13.59	%			16.00	%			11.83	%
Tangible common stockholders' equity to tangible assets(1)			10.37	%			10.03	%			9.35	%			13.05	%			9.86	%
Per Share Amounts:
Book value per share		$	24.19			$	23.62			$	23.10			$	22.76			$	18.89
Tangible book value per share (1)		$	16.82			$	16.22			$	15.42			$	18.27			$	15.82
Basic earnings per common share		$	0.55			$	0.68			$	0.34			$	0.48			$	0.57
Diluted earnings per common share		$	0.55			$	0.67			$	0.34			$	0.47			$	0.56
Adjusted diluted earnings per common share(1)		$	0.55			$	0.67			$	0.51			$	0.50			$	0.52
Shares outstanding end of period			26,709,411				26,949,936				26,279,761				26,260,785				20,824,509

Unaudited consolidated balance sheet as of:

		March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)		2019				2018				2018				2018				2018
ASSETS
Total cash and cash equivalents		$	171,950			$	234,939			$	282,409			$	133,365			$	106,046
Securities - available for sale			339,465				336,423				355,981				183,184				192,916
Securities - held to maturity			8,499				8,487				8,403				8,673				8,614
Equity securities			5,183				5,044				4,981				5,025				4,925
Loans held for sale			610				2,106				683				—				—
Loans held for investment			3,612,869				3,608,644				3,512,143				3,196,462				2,873,985
Allowance for loan and lease losses			(27,605	)			(27,571	)			(27,256	)			(24,547	)			(20,022	)
Loans, net			3,585,264				3,581,073				3,484,887				3,171,915				2,853,963
FHLB stock			21,191				15,943				23,109				19,223				16,508
Premises and equipment, net			84,931				83,392				82,935				68,313				62,826
Other real estate owned ("OREO"), net			3,073				2,060				2,442				2,528				9,186
Goodwill and intangible assets, net			197,015				199,417				201,842				117,777				63,923
Bank-owned life insurance			40,667				40,509				40,339				40,168				44,534
Deferred tax asset, net			7,608				8,438				8,137				8,810				8,849
Other assets			64,327				41,948				40,954				35,650				32,720
Total assets		$	4,529,783			$	4,559,779			$	4,537,102			$	3,794,631			$	3,405,010
LIABILITIES
Non-interest bearing deposits		$	667,597			$	724,527			$	697,903			$	561,033			$	548,991
Interest bearing deposits			2,646,843				2,725,822				2,741,146				2,063,909				1,984,507
Total deposits			3,314,440				3,450,349				3,439,049				2,624,942				2,533,498
Customer repurchase agreements			3,727				4,485				13,248				10,509				6,751
Federal Home Loan Bank advances			405,000				330,000				330,000				420,000				355,000
Subordinated notes			48,956				48,929				48,903				48,878				48,853
Junior subordinated debentures			39,200				39,083				38,966				38,849				38,734
Other liabilities			72,244				50,326				50,295				44,228				19,230
Total liabilities			3,883,567				3,923,172				3,920,461				3,187,406				3,002,066
EQUITY
Preferred stock series A			—				—				4,550				4,550				4,550
Preferred stock series B			—				—				5,108				5,108				5,108
Common stock			271				271				264				264				209
Additional paid-in-capital			470,292				469,341				458,920				457,980				265,406
Treasury stock, at cost			(9,881	)			(2,288	)			(2,285	)			(2,254	)			(1,853	)
Retained earnings			185,274				170,486				152,401				143,426				131,234
Accumulated other comprehensive income			260				(1,203	)			(2,317	)			(1,849	)			(1,710	)
Total equity			646,216				636,607				616,641				607,225				402,944
Total liabilities and equity		$	4,529,783			$	4,559,779			$	4,537,102			$	3,794,631			$	3,405,010

Unaudited consolidated statement of income:

		For the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)		2019				2018				2018				2018				2018
Interest income:
Loans, including fees		$	45,094			$	44,435			$	41,257			$	38,148			$	36,883
Factored receivables, including fees			24,556				28,070				27,939				20,791				15,303
Securities			2,644				2,314				1,551				1,179				1,310
FHLB stock			192				154				147				101				105
Cash deposits			778				877				865				1,030				517
Total interest income			73,264				75,850				71,759				61,249				54,118
Interest expense:
Deposits			8,218				7,931				6,219				4,631				4,277
Subordinated notes			839				839				837				838				837
Junior subordinated debentures			760				717				714				713				597
Other borrowings			2,136				1,482				2,207				1,810				1,277
Total interest expense			11,953				10,969				9,977				7,992				6,988
Net interest income			61,311				64,881				61,782				53,257				47,130
Provision for loan losses			1,014				1,910				6,803				4,906				2,548
Net interest income after provision for loan losses			60,297				62,971				54,979				48,351				44,582
Non-interest income:
Service charges on deposits			1,606				1,702				1,412				1,210				1,145
Card income			1,844				1,999				1,877				1,394				1,244
Net OREO gains (losses) and valuation adjustments			209				37				65				(528	)			(88	)
Net gains (losses) on sale of securities			(11	)			—				—				—				(272	)
Fee income			1,612				1,636				1,593				1,121				800
Insurance commissions			919				846				1,113				819				714
Gain on sale of subsidiary			—				—				—				—				1,071
Other			1,359				574				(1	)			929				558
Total non-interest income			7,538				6,794				6,059				4,945				5,172
Non-interest expense:
Salaries and employee benefits			26,439				25,586				24,695				20,527				19,404
Occupancy, furniture and equipment			4,522				4,402				3,553				3,014				3,054
FDIC insurance and other regulatory assessments			299				184				363				383				199
Professional fees			1,865				1,837				3,384				2,078				1,640
Amortization of intangible assets			2,402				2,438				2,064				1,361				1,117
Advertising and promotion			1,604				1,036				1,609				1,300				1,029
Communications and technology			4,874				4,388				7,252				3,271				3,359
Other			6,561				7,091				6,026				5,469				4,240
Total non-interest expense			48,566				46,962				48,946				37,403				34,042
Net income before income tax			19,269				22,803				12,092				15,893				15,712
Income tax expense			4,481				4,718				2,922				3,508				3,644
Net income		$	14,788			$	18,085			$	9,170			$	12,385			$	12,068
Dividends on preferred stock			—				—				(195	)			(193	)			(190	)
Net income available to common stockholders		$	14,788			$	18,085			$	8,975			$	12,192			$	11,878

Earnings per share:

		For the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)		2019				2018				2018				2018				2018
Basic
Net income to common stockholders		$	14,788			$	18,085			$	8,975			$	12,192			$	11,878
Weighted average common shares outstanding			26,679,724				26,666,554				26,178,194				25,519,108				20,721,363
Basic earnings per common share		$	0.55			$	0.68			$	0.34			$	0.48			$	0.57
Diluted
Net income to common stockholders		$	14,788			$	18,085			$	8,975			$	12,192			$	11,878
Dilutive effect of preferred stock			—				—				195				193				190
Net income to common stockholders - diluted		$	14,788			$	18,085			$	9,170			$	12,385			$	12,068
Weighted average common shares outstanding			26,679,724				26,666,554				26,178,194				25,519,108				20,721,363
Dilutive effects of:
Assumed conversion of Preferred A			—				89,240				315,773				315,773				315,773
Assumed conversion of Preferred B			—				100,176				354,471				354,471				354,471
Assumed exercises of stock options			64,166				76,219				90,320				86,821				83,872
Restricted stock awards			49,795				46,457				45,796				37,417				85,045
Restricted stock units			—				1,303				7,276				2,288				—
Performance stock units			—				—				—				—				—
Weighted average shares outstanding - diluted			26,793,685				26,979,949				26,991,830				26,315,878				21,560,524
Diluted earnings per common share		$	0.55			$	0.67			$	0.34			$	0.47			$	0.56
Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows:
		For the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2019				2018				2018				2018				2018
Assumed conversion of Preferred A			—				—				—				—				—
Assumed conversion of Preferred B			—				—				—				—				—
Stock options			50,752				51,952				51,952				51,952				—
Restricted stock awards			13,290				14,513				14,513				—				—
Restricted stock units			58,400				—				—				—				—
Performance stock units			58,400				59,658				59,658				59,658				—

Loans held for investment summarized as of:

		March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)		2019				2018				2018				2018				2018
Commercial real estate		$	1,093,882			$	992,080			$	906,494			$	766,839			$	781,006
Construction, land development, land			145,002				179,591				190,920				147,852				143,876
1-4 family residential properties			194,067				190,185				194,752				122,653				122,979
Farmland			156,299				170,540				177,313				177,060				184,064
Commercial			1,117,640				1,114,971				1,123,598				1,006,443				930,283
Factored receivables			570,663				617,791				611,285				603,812				397,145
Consumer			27,941				29,822				31,423				28,775				29,244
Mortgage warehouse			307,375				313,664				276,358				343,028				285,388
Total loans		$	3,612,869			$	3,608,644			$	3,512,143			$	3,196,462			$	2,873,985

A portion of our total loans held for investment portfolio consists of traditional community bank loans as well as commercial finance products offered under our commercial finance brands on a nationwide basis. Commercial finance loans are further summarized below:

		March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)		2019				2018				2018				2018				2018
Equipment		$	364,447			$	352,037			$	323,832			$	290,314			$	260,502
Asset based lending (General)			174,447				214,110				273,096				261,412				230,314
Premium finance			77,389				72,302				75,293				51,416				48,561
Factored receivables			570,663				617,791				611,285				603,812				397,145
Commercial finance		$	1,186,946			$	1,256,240			$	1,283,506			$	1,206,954			$	936,522
Commercial finance % of total loans			33	%			35	%			37	%			38	%			33	%

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

		March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)		2019				2018				2018				2018				2018
Average community banking		$	2,340,295			$	2,268,262			$	2,039,624			$	1,897,678			$	1,816,921
Average commercial finance(1)			1,194,748				1,264,209				1,254,095				1,024,369				949,938
Average total loans		$	3,535,043			$	3,532,471			$	3,293,719			$	2,922,047			$	2,766,859
Community banking yield			5.87	%			5.78	%			5.68	%			5.80	%			5.81	%
Commercial finance yield(1)			12.15	%			12.39	%			12.66	%			12.08	%			11.17	%
Total loan yield			7.99	%			8.14	%			8.33	%			8.09	%			7.65	%

⁽¹⁾ Includes assets held for sale for the period ended March 31, 2018

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:

		March 31,				December 31,				September 30,				June 30,				March 31,
		2019				2018				2018				2018				2018
Factored receivable period end balance		$	534,420,000			$	588,750,000			$	579,985,000			$	577,548,000			$	372,771,000
Yield on average receivable balance			17.96	%			18.24	%			18.96	%			18.70	%			17.40	%
Rolling twelve quarter annual charge-off rate			0.39	%			0.37	%			0.38	%			0.41	%			0.50	%
Factored receivables - transportation concentration			81	%			83	%			83	%			84	%			86	%
Interest income, including fees		$	23,803,000			$	27,578,000			$	27,420,000			$	20,314,000			$	14,780,000
Non-interest income			1,077,000				1,032,000				942,000				920,000				590,000
Factored receivable total revenue			24,880,000				28,610,000				28,362,000				21,234,000				15,370,000
Average net funds employed			490,241,000				547,996,000				525,499,000				398,096,000				316,488,000
Yield on average net funds employed			20.58	%			20.71	%			21.41	%			21.39	%			19.70	%
Accounts receivable purchased		$	1,325,140,000			$	1,541,332,000			$	1,503,049,000			$	1,162,810,000			$	912,336,000
Number of invoices purchased			789,838				882,042				836,771				656,429				521,906
Average invoice size		$	1,678			$	1,747			$	1,796			$	1,771			$	1,751
Average invoice size - transportation		$	1,541			$	1,625			$	1,666			$	1,695			$	1,662
Average invoice size - non-transportation		$	3,276			$	3,209			$	3,267			$	2,522			$	2,627
Net new clients			191				259				422				2,072				280
Period end clients			6,382				6,191				5,932				5,510				3,438

Deposits summarized as of:

		March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)		2019				2018				2018				2018				2018
Non-interest bearing demand		$	667,597			$	724,527			$	697,903			$	561,033			$	548,991
Interest bearing demand			602,088				615,704				608,775				358,246				392,947
Individual retirement accounts			112,696				115,583				118,459				101,380				105,558
Money market			372,109				443,663				413,402				268,699				283,354
Savings			372,914				369,389				373,062				239,127				244,103
Certificates of deposit			851,411				835,127				854,048				751,290				783,651
Brokered deposits			335,625				346,356				373,400				345,167				174,894
Total deposits		$	3,314,440			$	3,450,349			$	3,439,049			$	2,624,942			$	2,533,498

Net interest margin summarized for the three months ended:

		March 31, 2019												December 31, 2018
		Average								Average				Average								Average
(Dollars in thousands)		Balance				Interest				Rate				Balance				Interest				Rate
Interest earning assets:
Interest earning cash balances		$	126,372			$	778				2.50	%		$	152,212			$	877				2.29	%
Taxable securities			275,642				2,169				3.19	%			235,234				1,674				2.82	%
Tax-exempt securities			88,667				475				2.17	%			123,575				640				2.05	%
FHLB stock			17,860				192				4.36	%			16,426				154				3.72	%
Loans			3,535,043				69,650				7.99	%			3,532,471				72,505				8.14	%
Total interest earning assets		$	4,043,584			$	73,264				7.35	%		$	4,059,918			$	75,850				7.41	%
Non-interest earning assets:
Other assets			458,176												429,000
Total assets		$	4,501,760											$	4,488,918
Interest bearing liabilities:
Deposits:
Interest bearing demand		$	606,096			$	374				0.25	%		$	613,872			$	417				0.27	%
Individual retirement accounts			113,636				405				1.45	%			116,575				385				1.31	%
Money market			408,953				1,331				1.32	%			430,864				1,312				1.21	%
Savings			370,067				123				0.13	%			373,650				159				0.17	%
Certificates of deposit			834,515				3,965				1.93	%			862,500				3,749				1.72	%
Brokered deposits			353,829				2,020				2.32	%			347,498				1,909				2.18	%
Total deposits			2,687,096				8,218				1.24	%			2,744,959				7,931				1.15	%
Subordinated notes			48,940				839				6.95	%			48,914				839				6.81	%
Junior subordinated debentures			39,125				760				7.88	%			39,011				717				7.29	%
Other borrowings			336,667				2,136				2.57	%			262,391				1,482				2.24	%
Total interest bearing liabilities		$	3,111,828			$	11,953				1.56	%		$	3,095,275			$	10,969				1.41	%
Non-interest bearing liabilities and equity:
Non-interest bearing demand deposits			679,538												714,884
Other liabilities			65,434												46,633
Total equity			644,960												632,126
Total liabilities and equity		$	4,501,760											$	4,488,918
Net interest income						$	61,311											$	64,881
Interest spread											5.79	%											6.00	%
Net interest margin											6.15	%											6.34	%

Metrics and non-GAAP financial reconciliation:

		As of and for the Three Months Ended
(Dollars in thousands,		March 31,				December 31,				September 30,				June 30,				March 31,
except per share amounts)		2019				2018				2018				2018				2018
Net income available to common stockholders		$	14,788			$	18,085			$	8,975			$	12,192			$	11,878
Gain on sale of subsidiary			—				—				—				—				(1,071	)
Transaction related costs			—				—				5,871				1,094				—
Tax effect of adjustments			—				—				(1,392	)			(257	)			248
Adjusted net income available to common stockholders		$	14,788			$	18,085			$	13,454			$	13,029			$	11,055
Dilutive effect of convertible preferred stock			—				—				195				193				190
Adjusted net income available to common stockholders - diluted		$	14,788			$	18,085			$	13,649			$	13,222			$	11,245
Weighted average shares outstanding - diluted			26,793,685				26,979,949				26,991,830				26,315,878				21,560,524
Adjusted effects of assumed Preferred Stock conversion			—				—				—				—				—
Adjusted weighted average shares outstanding - diluted			26,793,685				26,979,949				26,991,830				26,315,878				21,560,524
Adjusted diluted earnings per common share		$	0.55			$	0.67			$	0.51			$	0.50			$	0.52
Net income available to common stockholders		$	14,788			$	18,085			$	8,975			$	12,192			$	11,878
Average tangible common equity			446,571				428,748				470,553				491,492				326,614
Return on average tangible common equity			13.43	%			16.73	%			7.57	%			9.95	%			14.75	%
Adjusted efficiency ratio:
Net interest income		$	61,311			$	64,881			$	61,782			$	53,257			$	47,130
Non-interest income			7,538				6,794				6,059				4,945				5,172
Operating revenue			68,849				71,675				67,841				58,202				52,302
Gain on sale of subsidiary			—				—				—				—				(1,071	)
Adjusted operating revenue		$	68,849			$	71,675			$	67,841			$	58,202			$	51,231
Non-interest expenses		$	48,566			$	46,962			$	48,946			$	37,403			$	34,042
Transaction related costs			—				—				(5,871	)			(1,094	)			—
Adjusted non-interest expenses		$	48,566			$	46,962			$	43,075			$	36,309			$	34,042
Adjusted efficiency ratio			70.54	%			65.52	%			63.49	%			62.38	%			66.45	%
Adjusted net non-interest expense to average assets ratio:
Non-interest expenses		$	48,566			$	46,962			$	48,946			$	37,403			$	34,042
Transaction related costs			—				—				(5,871	)			(1,094	)			—
Adjusted non-interest expenses		$	48,566			$	46,962			$	43,075			$	36,309			$	34,042
Total non-interest income		$	7,538			$	6,794			$	6,059			$	4,945			$	5,172
Gain on sale of subsidiary			—				—				—				—				(1,071	)
Adjusted non-interest income		$	7,538			$	6,794			$	6,059			$	4,945			$	4,101
Adjusted net non-interest expenses		$	41,028			$	40,168			$	37,016			$	31,364			$	29,941
Average total assets		$	4,501,760			$	4,488,918			$	4,060,560			$	3,628,960			$	3,410,883
Adjusted net non-interest expense to average assets ratio			3.70	%			3.55	%			3.62	%			3.47	%			3.56	%
Total stockholders' equity		$	646,216			$	636,607			$	616,641			$	607,225			$	402,944
Preferred stock liquidation preference			—				—				(9,658	)			(9,658	)			(9,658	)
Total common stockholders' equity			646,216				636,607				606,983				597,567				393,286
Goodwill and other intangibles			(197,015	)			(199,417	)			(201,842	)			(117,777	)			(63,923	)
Tangible common stockholders' equity		$	449,201			$	437,190			$	405,141			$	479,790			$	329,363
Common shares outstanding			26,709,411				26,949,936				26,279,761				26,260,785				20,824,509
Tangible book value per share		$	16.82			$	16.22			$	15.42			$	18.27			$	15.82
Total assets at end of period		$	4,529,783			$	4,559,779			$	4,537,102			$	3,794,631			$	3,405,010
Goodwill and other intangibles			(197,015	)			(199,417	)			(201,842	)			(117,777	)			(63,923	)
Adjusted total assets at period end		$	4,332,768			$	4,360,362			$	4,335,260			$	3,676,854			$	3,341,087
Tangible common stockholders' equity ratio			10.37	%			10.03	%			9.35	%			13.05	%			9.86	%

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 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
		March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)		2019				2018				2018				2018				2018
Loan discount accretion		$	1,557			$	1,411			$	1,271			$	3,637			$	1,977

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