Page 1

TriumphFinancial Triumph Bancorp Reports First Quarter Net Income to Common Stockholders of $ 33.1 Million April 21 , 2021 DALLAS , April 21 , 2021 ( GLOBE NEWSWIRE ) -- Triumph Bancorp , Inc. ( Nasdaq : TBK ) ( " Triumph " or the " Company " ) today announced earnings and operating results for the first quarter of 2021 . 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 . 2021 First Quarter Highlights • For the first quarter of 2021 , net income to common shareholders was $ 33.1 million , and diluted earnings per share were $ 1.32 . • Net interest income was $ 83.0 million . • Net interest margin was 6.06 % . Yield on loans and the average cost of our total deposits were 7.24 % and 0.28 % , respectively . • Non - interest income was $ 14.3 million , including a $ 4.7 million gain on indemnification asset related to the Transport Financial Solutions ( " TFS " ) acquisition as described below . • Non - interest expense was $ 60.9 million . • Credit loss expense for the quarter ended March 31 , 2021 was a benefit of $ 7.8 million . Components of our credit loss expense included : • A $ 9.5 million reduction in current expected losses in the loan portfolio and off balance sheet loan commitments primarily due to improvements in our macroeconomic forecasts . o $ 1.9 million expense due to net increases in specific reserves , including $ 2.9 million expense related to the TFS acquisition as discussed below . • Net charge - offs were $ 41.3 million , or 0.85 % of average loans , for the quarter including a fully reserved $ 41.3 million charge - off related to the TFS acquisition ; $ 35.6 million of which was indemnified and reimbursed to us by Covenant Logistics Group , Inc. as discussed below . • The total dollar value of invoices purchased by Triumph Business Capital was $ 2.492 billion with an average invoice size of $ 2,097 . The transportation average invoice size for the quarter was $ 1,974 . • Triumph Pay processed 2,529,673 invoices paying carriers a total of $ 2.302 billion . • On March 31 , 2021 , we , through TriumphPay , a division of our wholly - owned subsidiary TBK Bank , SSB , entered into a definitive agreement to acquire HubTran , Inc. , a cloud - based provider of automation software for the transportation industry's back - office , for $ 97 million in cash subject to customary purchase price adjustments and closing conditions . The acquisition is subject to customary closing conditions , including receipt of regulatory approval , and is expected to close in the second quarter of 2021 . Items related to our July 2020 acquisition of TFS As disclosed on our SEC Forms 8 - K filed on July 8 , 2020 and September 23 , 2020 , we acquired the transportation factoring assets of TFS , a wholly owned subsidiary of Covenant Logistics Group , Inc. ( " CVLG " ) , and subsequently amended the terms of that transaction . Developments related to that transaction impacted our operating results for the three months ended March 31 , 2021 as follows : • During the quarter , new adverse developments with the largest of the three Over - Formula Advance clients caused us to charge - off the entire $ 41.3 million net Over - Formula Advance amount due from that client . This net charge - off had no impact on credit loss expense for the three months ended March 31 , 2021 as the entire amount had been reserved in a prior period . In accordance with the amended terms of the transaction , CVLG reimbursed us for $ 35.6 million of this charge - off by drawing on its secured line of credit which is reflected on our March 31 , 2021 Consolidated Balance Sheet