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Business Segment Information
 9 Months Ended
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, 2023BankingFactoringPaymentsCorporateConsolidated
Total interest income$68,328 $34,244 $4,917 $44 $107,533 
Intersegment interest allocations8,330 (9,664)1,334 — — 
Total interest expense13,723 — — 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 expense62,525 24,205 6,237 (2,452)90,515 
Noninterest income5,978 2,546 4,817 69 13,410 
Noninterest expense31,503 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, 2022BankingFactoringPaymentsCorporateConsolidated
Total interest income$49,864 $49,561 $3,756 $44 $103,225 
Intersegment interest allocations5,890 (5,470)(420)— — 
Total interest expense2,925 — — 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 expense50,441 44,143 3,101 (2,061)95,624 
Noninterest income6,166 2,941 3,518 43 12,668 
Noninterest expense31,496 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, 2023BankingFactoringPaymentsCorporateConsolidated
Total interest income$193,678 $108,769 $11,115 $131 $313,693 
Intersegment interest allocations23,420 (28,176)4,756 — — 
Total interest expense30,305 — — 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 expense183,629 78,188 15,816 (7,541)270,092 
Noninterest income17,998 5,104 12,643 198 35,943 
Noninterest expense95,677 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, 2022BankingFactoringPaymentsCorporateConsolidated
Total interest income$138,286 $161,789 $12,760 $132 $312,967 
Intersegment interest allocations10,741 (9,900)(841)— — 
Total interest expense7,549 — — 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 expense138,840 149,928 11,514 (6,553)293,729 
Noninterest income34,419 20,333 17,069 128 71,949 
Noninterest expense91,313 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)FactoringPayments
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, 2023BankingFactoringPaymentsCorporateEliminationsConsolidated
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, 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