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Business Segment Information
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Business Segment Information BUSINESS SEGMENT INFORMATION
The Company's reportable segments are Banking, Factoring, Payments, and Corporate, which have been determined based upon their business processes and economic characteristics. This determination also gave consideration to the structure and management of various product lines. The Banking segment includes the operations of TBK Bank. The Banking segment derives its revenue principally from investments in interest earning assets as well as noninterest income typical for the banking industry. The Factoring segment includes the operations of Triumph Financial Services with revenue derived from factoring services. The Payments segment includes the operations of TBK Bank's TriumphPay division, which provides a presentment, audit, and payment solution to Shipper, Broker, and Factor clients in the trucking industry. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of both invoices where Carriers are offered a quickpay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to the Company and from offering Brokers the ability to settle their invoices with the Company on an extended term following the Company's payment to their Carriers as an additional liquidity option for such Brokers.
Prior to March 31, 2023, the majority of salaries and benefits expense for the Company's executive leadership team, as well as other selling, general, and administrative shared services costs including human resources, accounting, finance, risk management and a significant amount of information technology expense, were allocated to the Banking segment. During the quarter ended March 31, 2023 management began allocating such shared service costs to its Corporate segment. The Company continues to make considerable investments in shared services that benefit the entire organization and by moving such expenses to the Corporate segment, the Company's chief operating decision maker and investors now have greater visibility into the operating performance of each reportable segment. Prior periods were revised to reflect such allocations and achieve appropriate comparability.
Separately, prior to March 31, 2023, intersegment interest expense was allocated to the Factoring and Payments segments (when the Payments segment is not self-funded) based on a rolling average of Federal Home Loan Bank advance rates. When the Payments segment was self-funded with funding in excess of its factored receivables, intersegment interest income was allocated based on the Federal Funds effective rate. During the quarter ended March 31, 2023, the Company began allocating intersegment interest expense to the Factoring and Payments segments based on one-month term SOFR for their funding needs. When the Payments segment is self-funded, with funding in excess of its factored receivables, intersegment interest income will continue to be allocated based on the Federal Funds effective rate. Management believes that such intersegment interest allocations are more intuitive in the current interest rate environment. Prior periods were revised to reflect such allocations and achieve appropriate comparability.
Reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Changes in management structure or allocation methodologies and procedures may result in future changes to previously reported segment financial data. Other than the changes to allocations discussed above, the accounting policies of the segments are substantially the same as those described in the “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2022 Form 10-K.
Transactions between segments consist primarily of borrowed funds, payment network fees, and servicing fees. Intersegment interest expense is allocated to the Factoring and Payments segments as described above. Beginning January 1, 2023, payment network fees are paid by the Factoring segment to the Payments segment for use of the payments network. Beginning prospectively on June 1, 2023, factoring transactions with freight broker clients were transferred from our Factoring segment to our Payments segment to align with TriumphPay's supply chain finance product offerings. Credit loss expense is allocated based on the segment’s ACL determination. Noninterest income and expense directly attributable to a segment are assigned to it with various shared service costs such as human resources, accounting, finance, risk management and information technology expense assigned to the Corporate segment. Taxes are paid on a consolidated basis and are not allocated for segment purposes. The Factoring segment includes only factoring originated by Triumph Financial Services.
(Dollars in thousands)
Three months ended June 30, 2023BankingFactoringPaymentsCorporateConsolidated
Total interest income$65,624 $36,367 $3,451 $44 $105,486 
Intersegment interest allocations7,478 (9,358)1,880 — — 
Total interest expense11,634 — — 2,401 14,035 
Net interest income (expense)61,468 27,009 5,331 (2,357)91,451 
Credit loss expense (benefit)831 1,481 41 290 2,643 
Net interest income after credit loss expense60,637 25,528 5,290 (2,647)88,808 
Noninterest income6,347 980 4,119 65 11,511 
Intersegment noninterest income (expense)(1)
— (97)97 — — 
Noninterest expense31,934 20,218 16,939 21,305 90,396 
Net income (loss) before income tax expense$35,050 $6,193 $(7,433)$(23,887)$9,923 
(Dollars in thousands)
Three months ended June 30, 2022BankingFactoringPaymentsCorporateConsolidated
Total interest income$46,239 $55,854 $4,172 $42 $106,307 
Intersegment interest allocations4,246 (3,878)(368)— — 
Total interest expense3,021 — — 1,858 4,879 
Net interest income (expense)47,464 51,976 3,804 (1,816)101,428 
Credit loss expense (benefit)3,120 64 (184)(99)2,901 
Net interest income after credit loss expense44,344 51,912 3,988 (1,717)98,527 
Noninterest income22,282 15,521 10,309 48 48,160 
Intersegment noninterest income (expense)(1)
— — — — — 
Noninterest expense31,205 23,512 17,663 16,227 88,607 
Net income (loss) before income tax expense$35,421 $43,921 $(3,366)$(17,896)$58,080 
(Dollars in thousands)
Six months ended June 30, 2023BankingFactoringPaymentsCorporateConsolidated
Total interest income$125,350 $74,524 $6,198 $88 $206,160 
Intersegment interest allocations15,090 (18,512)3,422 — — 
Total interest expense16,582 — — 4,745 21,327 
Net interest income (expense)123,858 56,012 9,620 (4,657)184,833 
Credit loss expense (benefit)2,754 2,030 41 431 5,256 
Net interest income after credit loss expense121,104 53,982 9,579 (5,088)179,577 
Noninterest income12,020 2,558 7,826 129 22,533 
Intersegment noninterest income (expense)(1)
— (362)362 — — 
Noninterest expense64,174 41,987 32,356 41,160 179,677 
Net income (loss) before income tax expense$68,950 $14,191 $(14,589)$(46,119)$22,433 
(Dollars in thousands)
Six months ended June 30, 2022BankingFactoringPaymentsCorporateConsolidated
Total interest income$88,422 $112,228 $9,004 $88 $209,742 
Intersegment interest allocations4,851 (4,430)(421)— — 
Total interest expense4,624 — — 3,611 8,235 
Net interest income (expense)88,649 107,798 8,583 (3,523)201,507 
Credit loss expense (benefit)250 2,013 170 969 3,402 
Net interest income after credit loss expense88,399 105,785 8,413 (4,492)198,105 
Noninterest income28,253 17,392 13,551 85 59,281 
Intersegment noninterest income (expense)(1)
— — — — — 
Noninterest expense59,817 45,643 31,996 29,715 167,171 
Net income (loss) before income tax expense$56,835 $77,534 $(10,032)$(34,122)$90,215 
(1) Intersegment noninterest income (expense) includes:
(Dollars in thousands)FactoringPayments
Three Months Ended June 30, 2023
Factoring revenue received from Payments$170 $(170)
Payments revenue received from Factoring(267)267 
Intersegment noninterest income (expense)$(97)$97 
Three Months Ended June 30, 2022
Factoring revenue received from Payments$— $— 
Payments revenue received from Factoring— — 
Intersegment noninterest income (expense)$— $— 
Six months ended June 30, 2023
Factoring revenue received from Payments$170 $(170)
Payments revenue received from Factoring(532)532 
Intersegment noninterest income (expense)$(362)$362 
Six months ended June 30, 2022
Factoring revenue received from Payments$— $— 
Payments revenue received from Factoring— — 
Intersegment noninterest income (expense)$— $— 
Total assets and gross loans below include intersegment loans, which eliminate in consolidation.
(Dollars in thousands)
June 30, 2023BankingFactoringPaymentsCorporateEliminationsConsolidated
Total assets$5,161,837 $1,084,139 $447,935 $1,021,259 $(2,062,449)$5,652,721 
Gross loans$3,688,130 $997,842 $175,952 $— $(537,166)$4,324,758 
(Dollars in thousands)
December 31, 2022BankingFactoringPaymentsCorporateEliminationsConsolidated
Total assets$4,910,628 $1,260,209 $371,948 $1,061,662 $(2,270,664)$5,333,783 
Gross loans$3,572,716 $1,151,727 $85,722 $— $(689,874)$4,120,291