NOTE 15 – BUSINESS SEGMENT INFORMATION

The following table presents the Company’s operating segments. The accounting policies of the segments are substantially similar to those described in the “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2017 Form 10-K. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring segment based on the Company’s prime rate. The provision for loan loss is allocated based on the segment’s allowance for loan loss determination. Noninterest income and expense directly attributable to a segment are assigned to it. Taxes are paid on a consolidated basis but not allocated for segment purposes. The Factoring segment includes only factoring originated by TBC. General factoring services not originated through TBC are included in the Banking segment. On March 31, 2017, the Company sold its 100% membership interest in Triumph Capital Advisors, LLC (“TCA”) and discontinued fee based asset management services. TCA operations were not material during the year ended December 31, 2017 and are reflected in the Corporate segment, along with the gain on sale of the Company’s membership interest in TCA.

(Dollars in thousands)
Three Months Ended June 30, 2018	Banking		Factoring			Corporate			Consolidated
Total interest income	$	40,376	$	20,314		$	559		$	61,249
Intersegment interest allocations		4,155		(4,155	)		—			—
Total interest expense		6,440		—			1,552			7,992
Net interest income (expense)		38,091		16,159			(993	)		53,257
Provision for loan losses		1,592		3,313			1			4,906
Net interest income after provision		36,499		12,846			(994	)		48,351
Noninterest income		4,033		920			(8	)		4,945
Noninterest expense		26,401		10,311			691			37,403
Operating income (loss)	$	14,131	$	3,455		$	(1,693	)	$	15,893

(Dollars in thousands)
Three Months Ended June 30, 2017	Banking		Factoring			Corporate			Consolidated
Total interest income	$	32,733	$	10,387		$	418		$	43,538
Intersegment interest allocations		1,729		(1,729	)		—			—
Total interest expense		3,670		—			1,311			4,981
Net interest income (expense)		30,792		8,658			(893	)		38,557
Provision for loan losses		619		812			16			1,447
Net interest income after provision		30,173		7,846			(909	)		37,110
Noninterest income		3,577		758			867			5,202
Noninterest expense		21,216		5,482			623			27,321
Operating income (loss)	$	12,534	$	3,122		$	(665	)	$	14,991

(Dollars in thousands)
Six Months Ended June 30, 2018	Banking		Factoring			Corporate			Consolidated
Total interest income	$	79,280	$	35,094		$	993		$	115,367
Intersegment interest allocations		7,088		(7,088	)		—			—
Total interest expense		11,994		—			2,986			14,980
Net interest income (expense)		74,374		28,006			(1,993	)		100,387
Provision for loan losses		3,736		3,706			12			7,454
Net interest income after provision		70,638		24,300			(2,005	)		92,933
Gain on sale of subsidiary or division		1,071		—			—			1,071
Other noninterest income		7,620		1,510			(84	)		9,046
Noninterest expense		52,939		17,165			1,341			71,445
Operating income (loss)	$	26,390	$	8,645		$	(3,430	)	$	31,605

(Dollars in thousands)
Six Months Ended June 30, 2017	Banking		Factoring			Corporate			Consolidated
Total interest income	$	60,232	$	19,092		$	546		$	79,870
Intersegment interest allocations		3,018		(3,018	)		—			—
Total interest expense		6,882		—			2,612			9,494
Net interest income (expense)		56,368		16,074			(2,066	)		70,376
Provision for loan losses		7,640		1,393			92			9,125
Net interest income after provision		48,728		14,681			(2,158	)		61,251
Gain on sale of subsidiary or division		—		—			20,860			20,860
Other noninterest income		7,107		1,428			3,092			11,627
Noninterest expense		43,187		11,077			7,894			62,158
Operating income (loss)	$	12,648	$	5,032		$	13,900		$	31,580

(Dollars in thousands)
June 30, 2018	Banking		Factoring		Corporate		Eliminations			Consolidated
Total assets	$	3,667,251	$	652,734	$	719,562	$	(1,244,916	)	$	3,794,631
Gross loans	$	3,105,604	$	577,548	$	12,060	$	(498,750	)	$	3,196,462

(Dollars in thousands)
December 31, 2017	Banking		Factoring		Corporate		Eliminations			Consolidated
Total assets	$	3,444,322	$	360,922	$	504,656	$	(810,867	)	$	3,499,033
Gross loans	$	2,784,147	$	346,293	$	11,936	$	(331,520	)	$	2,810,856