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Business Segment Information | 9 Months Ended
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Sep. 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 September 30, 2023 |  | Banking |  | Factoring |  | Payments |  | Corporate |  | Consolidated
Total interest income |  | $ | 68,328 |  |  | $ | 34,244 |  |  | $ | 4,917 |  |  | $ | 44 |  |  | $ | 107,533 |
Intersegment interest allocations |  | 8,330 |  |  | (9,664) |  |  | 1,334 |  |  | — |  |  | — |
Total interest expense |  | 13,723 |  |  | — |  |  | — |  |  | 2,483 |  |  | 16,206 |
Net interest income (expense) |  | 62,935 |  |  | 24,580 |  |  | 6,251 |  |  | (2,439) |  |  | 91,327 |
Credit loss expense (benefit) |  | 410 |  |  | 375 |  |  | 14 |  |  | 13 |  |  | 812 |
Net interest income after credit loss expense |  | 62,525 |  |  | 24,205 |  |  | 6,237 |  |  | (2,452) |  |  | 90,515 |
Noninterest income |  | 5,978 |  |  | 2,546 |  |  | 4,817 |  |  | 69 |  |  | 13,410 |
Noninterest expense |  | 31,503 |  |  | 18,371 |  |  | 14,556 |  |  | 21,829 |  |  | 86,259 |
Net intersegment noninterest income (expense)(1) |  | — |  |  | 242 |  |  | (242) |  |  | — |  |  | — |
Net income (loss) before income tax expense |  | $ | 37,000 |  |  | $ | 8,622 |  |  | $ | (3,744) |  |  | $ | (24,212) |  |  | $ | 17,666 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |
Three months ended September 30, 2022 |  | Banking |  | Factoring |  | Payments |  | Corporate |  | Consolidated
Total interest income |  | $ | 49,864 |  |  | $ | 49,561 |  |  | $ | 3,756 |  |  | $ | 44 |  |  | $ | 103,225 |
Intersegment interest allocations |  | 5,890 |  |  | (5,470) |  |  | (420) |  |  | — |  |  | — |
Total interest expense |  | 2,925 |  |  | — |  |  | — |  |  | 2,030 |  |  | 4,955 |
Net interest income (expense) |  | 52,829 |  |  | 44,091 |  |  | 3,336 |  |  | (1,986) |  |  | 98,270 |
Credit loss expense (benefit) |  | 2,388 |  |  | (52) |  |  | 235 |  |  | 75 |  |  | 2,646 |
Net interest income after credit loss expense |  | 50,441 |  |  | 44,143 |  |  | 3,101 |  |  | (2,061) |  |  | 95,624 |
Noninterest income |  | 6,166 |  |  | 2,941 |  |  | 3,518 |  |  | 43 |  |  | 12,668 |
Noninterest expense |  | 31,496 |  |  | 24,811 |  |  | 14,066 |  |  | 16,316 |  |  | 86,689 |
Net intersegment noninterest income (expense)(1) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net income (loss) before income tax expense |  | $ | 25,111 |  |  | $ | 22,273 |  |  | $ | (7,447) |  |  | $ | (18,334) |  |  | $ | 21,603 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |
Nine months ended September 30, 2023 |  | Banking |  | Factoring |  | Payments |  | Corporate |  | Consolidated
Total interest income |  | $ | 193,678 |  |  | $ | 108,769 |  |  | $ | 11,115 |  |  | $ | 131 |  |  | $ | 313,693 |
Intersegment interest allocations |  | 23,420 |  |  | (28,176) |  |  | 4,756 |  |  | — |  |  | — |
Total interest expense |  | 30,305 |  |  | — |  |  | — |  |  | 7,228 |  |  | 37,533 |
Net interest income (expense) |  | 186,793 |  |  | 80,593 |  |  | 15,871 |  |  | (7,097) |  |  | 276,160 |
Credit loss expense (benefit) |  | 3,164 |  |  | 2,405 |  |  | 55 |  |  | 444 |  |  | 6,068 |
Net interest income after credit loss expense |  | 183,629 |  |  | 78,188 |  |  | 15,816 |  |  | (7,541) |  |  | 270,092 |
Noninterest income |  | 17,998 |  |  | 5,104 |  |  | 12,643 |  |  | 198 |  |  | 35,943 |
Noninterest expense |  | 95,677 |  |  | 60,358 |  |  | 46,912 |  |  | 62,989 |  |  | 265,936 |
Net intersegment noninterest income (expense)(1) |  | — |  |  | (120) |  |  | 120 |  |  | — |  |  | — |
Net income (loss) before income tax expense |  | $ | 105,950 |  |  | $ | 22,814 |  |  | $ | (18,333) |  |  | $ | (70,332) |  |  | $ | 40,099 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |
Nine months ended September 30, 2022 |  | Banking |  | Factoring |  | Payments |  | Corporate |  | Consolidated
Total interest income |  | $ | 138,286 |  |  | $ | 161,789 |  |  | $ | 12,760 |  |  | $ | 132 |  |  | $ | 312,967 |
Intersegment interest allocations |  | 10,741 |  |  | (9,900) |  |  | (841) |  |  | — |  |  | — |
Total interest expense |  | 7,549 |  |  | — |  |  | — |  |  | 5,641 |  |  | 13,190 |
Net interest income (expense) |  | 141,478 |  |  | 151,889 |  |  | 11,919 |  |  | (5,509) |  |  | 299,777 |
Credit loss expense (benefit) |  | 2,638 |  |  | 1,961 |  |  | 405 |  |  | 1,044 |  |  | 6,048 |
Net interest income after credit loss expense |  | 138,840 |  |  | 149,928 |  |  | 11,514 |  |  | (6,553) |  |  | 293,729 |
Noninterest income |  | 34,419 |  |  | 20,333 |  |  | 17,069 |  |  | 128 |  |  | 71,949 |
Noninterest expense |  | 91,313 |  |  | 70,454 |  |  | 46,062 |  |  | 46,031 |  |  | 253,860 |
Net intersegment noninterest income (expense)(1) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net income (loss) before income tax expense |  | $ | 81,946 |  |  | $ | 99,807 |  |  | $ | (17,479) |  |  | $ | (52,456) |  |  | $ | 111,818 |
(1) Net intersegment noninterest income (expense) includes:
(Dollars in thousands) |  | Factoring |  | Payments
Three Months Ended September 30, 2023 |  |  |  |
Factoring revenue received from Payments |  | $ | 510 |  |  | $ | (510) |
Payments revenue received from Factoring |  | (268) |  |  | 268 |
Net intersegment noninterest income (expense) |  | $ | 242 |  |  | $ | (242) |
Three Months Ended September 30, 2022 |  |  |  |
Factoring revenue received from Payments |  | $ | — |  |  | $ | — |
Payments revenue received from Factoring |  | — |  |  | — |
Net intersegment noninterest income (expense) |  | $ | — |  |  | $ | — |
Nine months ended September 30, 2023 |  |  |  |
Factoring revenue received from Payments |  | $ | 680 |  |  | $ | (680) |
Payments revenue received from Factoring |  | (800) |  |  | 800 |
Net intersegment noninterest income (expense) |  | $ | (120) |  |  | $ | 120 |
Nine months ended September 30, 2022 |  |  |  |
Factoring revenue received from Payments |  | $ | — |  |  | $ | — |
Payments revenue received from Factoring |  | — |  |  | — |
Net intersegment noninterest income (expense) |  | $ | — |  |  | $ | — |
Total assets and gross loans below include intersegment loans, which eliminate in consolidation.
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2023 |  | Banking |  | Factoring |  | Payments |  | Corporate |  | Eliminations |  | Consolidated
Total assets |  | $ | 5,136,313 |  |  | $ | 1,139,922 |  |  | $ | 484,895 |  |  | $ | 1,039,766 |  |  | $ | (2,201,102) |  |  | $ | 5,599,794 |
Gross loans |  | $ | 3,766,692 |  |  | $ | 1,041,448 |  |  | $ | 172,254 |  |  | $ | — |  |  | $ | (608,866) |  |  | $ | 4,371,528 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2022 |  | Banking |  | Factoring |  | Payments |  | Corporate |  | Eliminations |  | Consolidated
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 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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