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 September 30, 2018	Banking		Factoring			Corporate			Consolidated
Total interest income	$	43,769	$	27,420		$	570		$	71,759
Intersegment interest allocations		6,289		(6,289	)		—			—
Total interest expense		8,426		—			1,551			9,977
Net interest income (expense)		41,632		21,131			(981	)		61,782
Provision for loan losses		6,774		41			(12	)		6,803
Net interest income after provision		34,858		21,090			(969	)		54,979
Noninterest income		4,991		942			126			6,059
Noninterest expense		33,507		12,902			2,537			48,946
Operating income (loss)	$	6,342	$	9,130		$	(3,380	)	$	12,092

(Dollars in thousands)
Three Months Ended September 30, 2017	Banking			Factoring			Corporate			Consolidated
Total interest income	$	32,973		$	11,736		$	428		$	45,137
Intersegment interest allocations		2,193			(2,193	)		—			—
Total interest expense		4,294			—			1,331			5,625
Net interest income (expense)		30,872			9,543			(903	)		39,512
Provision for loan losses		(69	)		649			(8	)		572
Net interest income after provision		30,941			8,894			(895	)		38,940
Noninterest income		3,498			774			(101	)		4,171
Noninterest expense		21,984			5,600			641			28,225
Operating income (loss)	$	12,455		$	4,068		$	(1,637	)	$	14,886

(Dollars in thousands)
Nine Months Ended September 30, 2018	Banking		Factoring			Corporate			Consolidated
Total interest income	$	123,050	$	62,514		$	1,562		$	187,126
Intersegment interest allocations		13,377		(13,377	)		—			—
Total interest expense		20,421		—			4,536			24,957
Net interest income (expense)		116,006		49,137			(2,974	)		162,169
Provision for loan losses		10,510		3,747			—			14,257
Net interest income after provision		105,496		45,390			(2,974	)		147,912
Gain on sale of subsidiary or division		1,071		—			—			1,071
Other noninterest income		12,612		2,452			41			15,105
Noninterest expense		86,446		30,067			3,878			120,391
Operating income (loss)	$	32,733	$	17,775		$	(6,811	)	$	43,697

(Dollars in thousands)
Nine Months Ended September 30, 2017	Banking		Factoring			Corporate			Consolidated
Total interest income	$	93,204	$	30,828		$	975		$	125,007
Intersegment interest allocations		5,211		(5,211	)		—			—
Total interest expense		11,177		—			3,942			15,119
Net interest income (expense)		87,238		25,617			(2,967	)		109,888
Provision for loan losses		7,571		2,042			84			9,697
Net interest income after provision		79,667		23,575			(3,051	)		100,191
Gain on sale of subsidiary or division		—		—			20,860			20,860
Other noninterest income		10,604		2,203			2,991			15,798
Noninterest expense		65,171		16,677			8,535			90,383
Operating income (loss)	$	25,100	$	9,101		$	12,265		$	46,466

(Dollars in thousands)
September 30, 2018	Banking		Factoring		Corporate		Eliminations			Consolidated
Total assets	$	4,433,862	$	659,782	$	712,971	$	(1,269,513	)	$	4,537,102
Gross loans	$	3,411,456	$	579,985	$	10,952	$	(490,250	)	$	3,512,143

(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