Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 17, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36722 | |
Entity Registrant Name | TRIUMPH FINANCIAL, INC. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 20-0477066 | |
Entity Address, Address Line One | 12700 Park Central Drive, Suite 1700 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75251 | |
City Area Code | 214 | |
Local Phone Number | 365-6900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,291,711 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001539638 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | TFIN | |
Security Exchange Name | NASDAQ | |
Depositary Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares Each Representing a 1/40th Interest in a Share of 7.125% Series C Fixed-Rate Non-Cumulative Perpetual Preferred Stock | |
Trading Symbol | TFINP | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 84,641 | $ 133,889 |
Interest bearing deposits with other banks | 252,942 | 274,293 |
Total cash and cash equivalents | 337,583 | 408,182 |
Securities - equity investments with readily determinable fair values | 4,289 | 5,191 |
Securities - available for sale | 292,324 | 254,504 |
Securities - held to maturity, net of allowance for credit losses of $2,890 and $2,444, respectively, fair value of $4,756 and $5,476, respectively | 3,311 | 4,077 |
Loans held for sale | 6,416 | 5,641 |
Loans, net of allowance for credit losses of $34,815 and $42,807, respectively | 4,336,713 | 4,077,484 |
Federal Home Loan Bank and other restricted stock | 10,101 | 6,252 |
Premises and equipment, net | 113,062 | 103,339 |
Goodwill | 233,709 | 233,709 |
Intangible assets, net | 26,400 | 32,058 |
Bank-owned life insurance | 41,822 | 41,493 |
Deferred tax asset, net | 9,594 | 16,473 |
Other assets | 184,470 | 145,380 |
Total assets | 5,599,794 | 5,333,783 |
Deposits | ||
Noninterest bearing | 1,632,559 | 1,756,680 |
Interest bearing | 2,854,492 | 2,414,656 |
Total deposits | 4,487,051 | 4,171,336 |
Customer repurchase agreements | 0 | 340 |
Federal Home Loan Bank advances | 30,000 | 30,000 |
Subordinated notes | 108,454 | 107,800 |
Junior subordinated debentures | 41,592 | 41,158 |
Other liabilities | 82,315 | 94,178 |
Total liabilities | 4,749,412 | 4,444,812 |
Commitments and contingencies - See Note 8 and Note 9 | ||
Stockholders' equity - See Note 12 | ||
Preferred stock | 45,000 | 45,000 |
Common stock, 23,291,693 and 24,053,585 shares outstanding, respectively | 290 | 283 |
Additional paid-in-capital | 547,212 | 534,790 |
Treasury stock, at cost | (265,016) | (182,658) |
Retained earnings | 527,506 | 498,456 |
Accumulated other comprehensive income (loss) | (4,610) | (6,900) |
Total stockholders’ equity | 850,382 | 888,971 |
Total liabilities and stockholders' equity | $ 5,599,794 | $ 5,333,783 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||||||
Allowance for credit losses | $ 2,890 | $ 2,876 | $ 2,444 | $ 2,430 | $ 2,355 | $ 2,082 |
Fair Value | 4,756 | 5,476 | ||||
Allowance for credit losses | $ 34,815 | $ 42,807 | ||||
Common stock, outstanding (in shares) | 23,291,693 | 24,053,585 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest and dividend income: | ||||
Loans, including fees | $ 59,669 | $ 44,928 | $ 169,465 | $ 129,906 |
Factored receivables, including fees | 39,161 | 53,317 | 119,884 | 174,549 |
Securities | 5,205 | 2,308 | 14,552 | 4,815 |
FHLB and other restricted stock | 397 | 65 | 741 | 175 |
Cash deposits | 3,101 | 2,607 | 9,051 | 3,522 |
Total interest income | 107,533 | 103,225 | 313,693 | 312,967 |
Interest expense: | ||||
Deposits | 12,474 | 2,743 | 22,553 | 7,010 |
Subordinated notes | 1,315 | 1,304 | 3,936 | 3,905 |
Junior subordinated debentures | 1,169 | 726 | 3,293 | 1,736 |
Other borrowings | 1,248 | 182 | 7,751 | 539 |
Total interest expense | 16,206 | 4,955 | 37,533 | 13,190 |
Net interest income (expense) | 91,327 | 98,270 | 276,160 | 299,777 |
Credit loss expense (benefit) | 812 | 2,646 | 6,068 | 6,048 |
Net interest income after credit loss expense (benefit) | 90,515 | 95,624 | 270,092 | 293,729 |
Noninterest income: | ||||
Net OREO gains (losses) and valuation adjustments | 0 | (19) | 0 | (133) |
Net gains (losses) on sale or call of securities | 5 | 0 | 5 | 2,514 |
Net gains (losses) on sale of loans | 203 | 1,107 | 206 | 18,310 |
Insurance commissions | 1,074 | 1,191 | 3,970 | 4,209 |
Other | 227 | 677 | (1,320) | 17,643 |
Total noninterest income | 13,410 | 12,668 | 35,943 | 71,949 |
Noninterest expense: | ||||
Salaries and employee benefits | 50,884 | 49,307 | 159,789 | 149,848 |
Occupancy, furniture and equipment | 7,542 | 6,826 | 21,537 | 19,769 |
FDIC insurance and other regulatory assessments | 682 | 454 | 1,968 | 1,376 |
Professional fees | 3,941 | 4,263 | 10,061 | 11,529 |
Amortization of intangible assets | 2,849 | 2,913 | 8,700 | 9,085 |
Advertising and promotion | 1,839 | 1,995 | 4,839 | 5,029 |
Communications and technology | 10,784 | 12,410 | 34,034 | 32,197 |
Other | 7,738 | 8,521 | 25,008 | 25,027 |
Total noninterest expense | 86,259 | 86,689 | 265,936 | 253,860 |
Net income before income tax expense | 17,666 | 21,603 | 40,099 | 111,818 |
Income tax expense | 4,872 | 5,374 | 8,645 | 27,068 |
Net income | 12,794 | 16,229 | 31,454 | 84,750 |
Dividends on preferred stock | (801) | (801) | (2,404) | (2,404) |
Net income available to common stockholders | $ 11,993 | $ 15,428 | $ 29,050 | $ 82,346 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.52 | $ 0.64 | $ 1.25 | $ 3.36 |
Diluted (in dollars per share) | $ 0.51 | $ 0.62 | $ 1.23 | $ 3.28 |
Service charges on deposits | ||||
Noninterest income: | ||||
Revenue | $ 1,728 | $ 1,558 | $ 5,210 | $ 5,185 |
Card income | ||||
Noninterest income: | ||||
Revenue | 2,065 | 2,034 | 6,152 | 6,125 |
Fee income | ||||
Noninterest income: | ||||
Revenue | $ 8,108 | $ 6,120 | $ 21,720 | $ 18,096 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 12,794 | $ 16,229 | $ 31,454 | $ 84,750 |
Unrealized gains (losses) on securities: | ||||
Unrealized holding gains (losses) arising during the period | 506 | (4,806) | 2,862 | (13,164) |
Tax effect | (127) | 1,127 | (568) | 3,067 |
Unrealized holding gains (losses) arising during the period, net of taxes | 379 | (3,679) | 2,294 | (10,097) |
Reclassification of amount realized through sale or call of securities | (5) | 0 | (5) | (2,514) |
Tax effect | 1 | 0 | 1 | 620 |
Reclassification of amount realized through sale or call of securities, net of taxes | (4) | 0 | (4) | (1,894) |
Change in unrealized gains (losses) on securities, net of tax | 375 | (3,679) | 2,290 | (11,991) |
Unrealized gains (losses) on derivative financial instruments: | ||||
Unrealized holding gains (losses) arising during the period | 0 | 0 | 0 | 3,152 |
Tax effect | 0 | 0 | 0 | (754) |
Unrealized holding gains (losses) arising during the period, net of taxes | 0 | 0 | 0 | 2,398 |
Reclassification of amount of (gains) losses recognized into income | 0 | 0 | 0 | (9,316) |
Tax effect | 0 | 0 | 0 | 2,213 |
Reclassification of amount of (gains) losses recognized into income, net of taxes | 0 | 0 | 0 | (7,103) |
Change in unrealized gains (losses) on derivative financial instruments | 0 | 0 | 0 | (4,705) |
Total other comprehensive income (loss) | 375 | (3,679) | 2,290 | (16,696) |
Comprehensive income | $ 13,169 | $ 12,550 | $ 33,744 | $ 68,054 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in- Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2021 | $ 858,864 | $ 45,000 | $ 283 | $ 510,939 | $ (104,743) | $ 399,351 | $ 8,034 |
Beginning balance, common stock (in shares) at Mar. 31, 2022 | 25,161,690 | ||||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2021 | 3,102,801 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of restricted stock awards (in shares) | 5,502 | ||||||
Stock option exercises, net (in shares) | 2,021 | ||||||
Stock option exercises, net | (74) | (74) | |||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan (in shares) | 10,585 | ||||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan | 688 | 688 | |||||
Stock based compensation | 4,952 | 4,952 | |||||
Forfeiture of restricted stock awards (in shares) | (487) | (487) | |||||
Forfeiture of restricted stock awards | 0 | 46 | $ (46) | ||||
Purchase of treasury stock, net (in shares) | (14,810) | (14,810) | |||||
Purchase of treasury stock, net | (1,316) | $ (1,316) | |||||
Dividends on preferred stock / declared | (801) | (801) | |||||
Net income | 24,329 | 24,329 | |||||
Other comprehensive income (loss) | 23 | 23 | |||||
Ending Balance at Mar. 31, 2022 | 886,665 | 45,000 | $ 283 | 516,551 | $ (106,105) | 422,879 | 8,057 |
Ending balance, common stock (in shares) at Dec. 31, 2021 | 25,158,879 | ||||||
Ending balance, treasury stock (in shares) at Mar. 31, 2022 | 3,118,098 | ||||||
Beginning Balance at Dec. 31, 2021 | 858,864 | 45,000 | $ 283 | 510,939 | $ (104,743) | 399,351 | 8,034 |
Beginning balance, common stock (in shares) at Sep. 30, 2022 | 24,478,288 | ||||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2021 | 3,102,801 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 84,750 | ||||||
Other comprehensive income (loss) | (16,696) | ||||||
Ending Balance at Sep. 30, 2022 | 891,173 | 45,000 | $ 283 | 529,804 | $ (156,949) | 481,697 | (8,662) |
Ending balance, common stock (in shares) at Dec. 31, 2021 | 25,158,879 | ||||||
Ending balance, treasury stock (in shares) at Sep. 30, 2022 | 3,843,428 | ||||||
Beginning Balance at Mar. 31, 2022 | 886,665 | 45,000 | $ 283 | 516,551 | $ (106,105) | 422,879 | 8,057 |
Beginning balance, common stock (in shares) at Jun. 30, 2022 | 24,457,777 | ||||||
Beginning balance, treasury stock (in shares) at Mar. 31, 2022 | 3,118,098 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Vesting of restricted stock and performance stock units (in shares) | 20,996 | ||||||
Stock option exercises, net (in shares) | 32 | ||||||
Stock based compensation | 7,880 | 7,880 | |||||
Forfeiture of restricted stock awards (in shares) | (2,417) | (2,417) | |||||
Forfeiture of restricted stock awards | 0 | 205 | $ (205) | ||||
Purchase of treasury stock, net (in shares) | (722,524) | (722,524) | |||||
Purchase of treasury stock, net | (50,614) | $ (50,614) | |||||
Dividends on preferred stock / declared | (802) | (802) | |||||
Net income | 44,192 | 44,192 | |||||
Other comprehensive income (loss) | (13,040) | (13,040) | |||||
Ending Balance at Jun. 30, 2022 | 874,281 | 45,000 | $ 283 | 524,636 | $ (156,924) | 466,269 | (4,983) |
Ending balance, common stock (in shares) at Mar. 31, 2022 | 25,161,690 | ||||||
Ending balance, treasury stock (in shares) at Jun. 30, 2022 | 3,843,039 | ||||||
Beginning balance, common stock (in shares) at Sep. 30, 2022 | 24,478,288 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of restricted stock awards (in shares) | 6,969 | ||||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan (in shares) | 13,931 | ||||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan | 860 | 860 | |||||
Stock based compensation | 4,296 | 4,296 | |||||
Forfeiture of restricted stock awards (in shares) | (194) | (194) | |||||
Forfeiture of restricted stock awards | 0 | 12 | $ (12) | ||||
Purchase of treasury stock, net (in shares) | (195) | (195) | |||||
Purchase of treasury stock, net | (13) | $ (13) | |||||
Dividends on preferred stock / declared | (801) | (801) | |||||
Net income | 16,229 | 16,229 | |||||
Other comprehensive income (loss) | (3,679) | (3,679) | |||||
Ending Balance at Sep. 30, 2022 | $ 891,173 | 45,000 | $ 283 | 529,804 | $ (156,949) | 481,697 | (8,662) |
Ending balance, common stock (in shares) at Jun. 30, 2022 | 24,457,777 | ||||||
Ending balance, treasury stock (in shares) at Sep. 30, 2022 | 3,843,428 | ||||||
Beginning balance, common stock (in shares) at Dec. 31, 2022 | 24,053,585 | 24,053,585 | |||||
Ending Balance at Dec. 31, 2022 | $ 888,971 | 45,000 | $ 283 | 534,790 | $ (182,658) | 498,456 | (6,900) |
Ending balance, common stock (in shares) at Sep. 30, 2022 | 24,478,288 | ||||||
Ending balance, treasury stock (in shares) at Dec. 31, 2022 | 4,268,131 | 4,268,131 | |||||
Beginning balance, common stock (in shares) at Mar. 31, 2023 | 23,370,515 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of restricted stock awards (in shares) | 6,852 | ||||||
Vesting of restricted stock and performance stock units (in shares) | 366,892 | ||||||
Vesting of restricted stock and performance stock units | $ 0 | $ 4 | (4) | ||||
Stock option exercises, net (in shares) | 758 | ||||||
Stock option exercises, net | (33) | (33) | |||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan (in shares) | 21,057 | ||||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan | 997 | 997 | |||||
Stock based compensation | 2,881 | 2,881 | |||||
Forfeiture of restricted stock awards (in shares) | (10,961) | (10,961) | |||||
Forfeiture of restricted stock awards | 0 | 610 | $ (610) | ||||
Purchase of treasury stock, net (in shares) | (1,067,668) | (1,067,668) | |||||
Purchase of treasury stock, net | (77,185) | $ (77,185) | |||||
Dividends on preferred stock / declared | (801) | (801) | |||||
Net income | 11,010 | 11,010 | |||||
Other comprehensive income (loss) | 1,376 | 1,376 | |||||
Ending Balance at Mar. 31, 2023 | $ 827,216 | 45,000 | $ 287 | 539,241 | $ (260,453) | 508,665 | (5,524) |
Ending balance, common stock (in shares) at Dec. 31, 2022 | 24,053,585 | 24,053,585 | |||||
Ending balance, treasury stock (in shares) at Mar. 31, 2023 | 5,346,760 | ||||||
Beginning Balance at Dec. 31, 2022 | $ 888,971 | 45,000 | $ 283 | 534,790 | $ (182,658) | 498,456 | (6,900) |
Beginning balance, common stock (in shares) at Sep. 30, 2023 | 23,291,693 | 23,291,693 | |||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2022 | 4,268,131 | 4,268,131 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 31,454 | ||||||
Other comprehensive income (loss) | 2,290 | ||||||
Ending Balance at Sep. 30, 2023 | $ 850,382 | 45,000 | $ 290 | 547,212 | $ (265,016) | 527,506 | (4,610) |
Ending balance, common stock (in shares) at Dec. 31, 2022 | 24,053,585 | 24,053,585 | |||||
Ending balance, treasury stock (in shares) at Sep. 30, 2023 | 5,683,513 | 5,683,513 | |||||
Beginning Balance at Mar. 31, 2023 | $ 827,216 | 45,000 | $ 287 | 539,241 | $ (260,453) | 508,665 | (5,524) |
Beginning balance, common stock (in shares) at Jun. 30, 2023 | 23,269,885 | ||||||
Beginning balance, treasury stock (in shares) at Mar. 31, 2023 | 5,346,760 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Vesting of restricted stock and performance stock units (in shares) | 233,728 | ||||||
Vesting of restricted stock and performance stock units | 0 | $ 2 | (2) | ||||
Stock option exercises, net (in shares) | 829 | ||||||
Stock option exercises, net | (19) | (19) | |||||
Stock based compensation | 3,320 | 3,320 | |||||
Forfeiture of restricted stock awards (in shares) | (451) | (451) | |||||
Forfeiture of restricted stock awards | 0 | 25 | $ (25) | ||||
Purchase of treasury stock, net (in shares) | (334,736) | (334,736) | |||||
Purchase of treasury stock, net | (4,438) | $ (4,438) | |||||
Dividends on preferred stock / declared | (802) | (802) | |||||
Net income | 7,650 | 7,650 | |||||
Other comprehensive income (loss) | 539 | 539 | |||||
Ending Balance at Jun. 30, 2023 | $ 833,466 | 45,000 | $ 289 | 542,565 | $ (264,916) | 515,513 | (4,985) |
Ending balance, common stock (in shares) at Mar. 31, 2023 | 23,370,515 | ||||||
Ending balance, treasury stock (in shares) at Jun. 30, 2023 | 5,681,947 | ||||||
Beginning balance, common stock (in shares) at Sep. 30, 2023 | 23,291,693 | 23,291,693 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of restricted stock awards (in shares) | 6,522 | ||||||
Issuance of restricted stock awards | $ 0 | $ 1 | (1) | ||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan (in shares) | 16,852 | ||||||
Issuance of common stock pursuant to the Employee Stock Purchase Plan | 834 | 834 | |||||
Stock based compensation | 3,714 | 3,714 | |||||
Forfeiture of restricted stock awards (in shares) | (1,566) | (1,566) | |||||
Forfeiture of restricted stock awards | 0 | 100 | $ (100) | ||||
Dividends on preferred stock / declared | (801) | (801) | |||||
Net income | 12,794 | 12,794 | |||||
Other comprehensive income (loss) | 375 | 375 | |||||
Ending Balance at Sep. 30, 2023 | $ 850,382 | $ 45,000 | $ 290 | $ 547,212 | $ (265,016) | $ 527,506 | $ (4,610) |
Ending balance, common stock (in shares) at Jun. 30, 2023 | 23,269,885 | ||||||
Ending balance, treasury stock (in shares) at Sep. 30, 2023 | 5,683,513 | 5,683,513 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 31,454 | $ 84,750 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 10,212 | 9,979 |
Net accretion on loans | (4,203) | (6,631) |
Amortization of subordinated notes issuance costs | 654 | 630 |
Amortization of junior subordinated debentures | 434 | 414 |
Net (accretion) amortization on securities | (665) | (609) |
Amortization of intangible assets | 8,700 | 9,085 |
Deferred taxes | 6,313 | 524 |
Credit loss expense (benefit) | 6,068 | 6,048 |
Stock based compensation | 9,915 | 17,128 |
Net (gains) losses on sale or call of debt securities | (5) | (2,514) |
Net (gains) losses on equity securities | 119 | (9,575) |
Net OREO (gains) losses and valuation adjustments | 0 | 133 |
Origination of loans held for sale | (3,584) | (10,402) |
Purchases of loans held for sale | 0 | (6,913) |
Proceeds from sale of loans originated or purchased for sale | 3,435 | 17,673 |
Net (gains) losses on sale of loans | (206) | (18,310) |
Net change in operating leases | (199) | 272 |
(Increase) decrease in other assets | (39,816) | (37,308) |
Increase (decrease) in other liabilities | (10,672) | 9,107 |
Net cash provided by (used in) operating activities | 17,954 | 63,481 |
Cash flows from investing activities: | ||
Proceeds from sales of equity securities | 783 | 0 |
Purchases of securities available for sale | (69,483) | (117,440) |
Proceeds from sales of securities available for sale | 14,005 | 40,163 |
Proceeds from maturities, calls, and pay downs of securities available for sale | 21,054 | 23,562 |
Proceeds from maturities, calls, and pay downs of securities held to maturity | 451 | 578 |
Purchases of loans held for investment | (18,842) | (133,674) |
Proceeds from sale of loans | 45,940 | 207,406 |
Net change in loans | (288,762) | 285,854 |
Purchases of premises and equipment, net | (19,935) | (8,522) |
Net proceeds from sale of OREO | 0 | 438 |
(Purchases) redemptions of FHLB and other restricted stock, net | (3,849) | 3,933 |
Acquired intangible assets | (3,042) | 0 |
Proceeds from sale of disposal group | 0 | 85,923 |
Net cash provided by (used in) investing activities | (321,680) | 388,221 |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 315,715 | (194,494) |
Increase (decrease) in customer repurchase agreements | (340) | 11,360 |
Increase (decrease) in Federal Home Loan Bank advances | 0 | (150,000) |
Repayment of other borrowings | 0 | (27,144) |
Preferred dividends | (2,404) | (2,404) |
Stock option exercises, net | (52) | (74) |
Proceeds from employee stock purchase plan common stock issuance | 1,831 | 1,548 |
Purchase of treasury stock, net | (81,623) | (51,943) |
Net cash provided by (used in) financing activities | 233,127 | (413,151) |
Net increase (decrease) in cash and cash equivalents | (70,599) | 38,551 |
Cash and cash equivalents at beginning of period | 408,182 | 383,178 |
Cash and cash equivalents at end of period | 337,583 | 421,729 |
Supplemental cash flow information: | ||
Interest paid | 30,893 | 11,416 |
Income taxes paid, net | 14,019 | 45,035 |
Cash paid for operating lease liabilities | 4,149 | 2,691 |
Supplemental noncash disclosures: | ||
Loans transferred to OREO | 0 | 47 |
Loans held for investment transferred to loans held for sale | 46,625 | 197,899 |
Assets transferred to assets held for sale | 0 | 80,819 |
Deposits transferred to deposits held for sale | 0 | 10,434 |
Lease liabilities arising from obtaining right-of-use assets | 3,228 | 5,267 |
Securities available for sale purchased, not settled | 0 | 14,976 |
Non-cash consideration received from sale of loan portfolio or disposal group | $ 0 | $ 5,529 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Triumph Financial, Inc. (collectively with its subsidiaries, “Triumph Financial”, or the “Company” as applicable) is a financial holding company headquartered in Dallas, Texas, offering a diversified line of payments, factoring and banking services. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Triumph CRA Holdings, LLC (“TCRA”), TBK Bank, SSB (“TBK Bank”), TBK Bank’s wholly owned factoring subsidiary Triumph Financial Services LLC ("Triumph Financial Services"), and TBK Bank’s wholly owned subsidiary Triumph Insurance Group, Inc. (“TIG”). TriumphPay operates as a division of TBK Bank, SSB. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary for a fair presentation. Transactions between the subsidiaries have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Operating Segments The Company’s reportable segments are comprised of strategic business units primarily based upon industry categories and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing. Segment determination also considers organizational structure and is consistent with the presentation of financial information to the chief operating decision maker to evaluate segment performance, develop strategy, and allocate resources. The Company's chief operating decision maker is the Chief Executive Officer of Triumph Financial, Inc. Management has determined that the Company has four reportable segments consisting of Banking, Factoring, Payments, and Corporate. 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 the TBK Bank's TriumphPay division, which is the payments network for presentment, audit, and payment of over-the-road trucking invoices. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of (i) invoices where we offer a carrier 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 us, (ii) offering freight brokers the ability to settle their invoices with us on an extended term following our payment to their carriers as an additional liquidity option for such freight brokers, and (iii) factoring transactions where we purchase receivables payable to such freight brokers from their shipper clients. The Corporate segment includes holding company financing and investment activities as well as management and administrative expenses that support the overall operations of the Company such as human resources, accounting, finance, risk management and information technology expense. For further discussion of management's operating segments and allocation methodology, see Note 16 – Business Segment Information. Adoption of New Accounting Standards In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, "Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings ("TDRs") in ASC 310-40, "Receivables - Troubled Debt Restructurings by Creditors" for entities that have adopted the current expected credit loss ("CECL") model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13"). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, "Financial Instruments—Credit Losses—Measured at Amortized Cost". |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Equipment Loan Sale During the quarter ended June 30, 2022, the Company made the decision to sell a portfolio of equipment loans for cash consideration. The sale closed on June 23, 2022. A summary of the carrying amount of the assets sold and the gain on sale is as follows: (Dollars in thousands) Equipment loans $ 191,167 Accrued interest receivable 1,587 Assets sold 192,754 Cash consideration 197,454 Return of premium liability (708) Total consideration 196,746 Transaction costs 73 Gain on sale, net of transaction costs $ 3,919 The associated agreement contains a provision that in the event that a sold loan is prepaid in full prior to the due date of the final scheduled contractual payment, the Company will return a pro-rata portion of the premium calculated as of the date of such prepayment in full. As this transaction qualified as a sale of a group of entire financial assets, management must recognize, as proceeds, any assets obtained and liabilities incurred. Thus, management recorded a $708,000 liability for the potential return of premium measured at fair value as of the date of close. Management has elected the fair value option to account for the liability. It is recorded in other liabilities in the Company's Consolidated Balance Sheet and is marked to fair value through earnings at each reporting period. For further discussion of changes in the fair value of the return of premium liability and the period end balance, see Note 10 – Fair Value Disclosures. The gain on sale, net of transaction costs, was included in net gains (losses) on sale of loans in the Company’s Consolidated Statements of Income during the three months ended June 30, 2022 and was allocated to the Banking segment. Factored Receivable Disposal Group On June 30, 2022 and September 6, 2022, the Company entered into and closed two separate agreements to sell two separate portfolios of factored receivables. A summary of the carrying amounts of the assets and liabilities sold and the gains on sale are as follows: (Dollars in thousands) June 30, 2022 September 6, 2022 Total Factored receivables $ 67,888 $ 20,131 $ 88,019 Accrued interest and fee income — 17 17 Assets held for sale 67,888 20,148 88,036 Customer reserve noninterest bearing deposits 9,682 1,149 10,831 Liabilities held for sale 9,682 1,149 10,831 Net assets sold 58,206 18,999 77,205 Cash consideration 66,292 19,054 85,346 Revenue share asset 5,210 1,027 6,237 Total consideration 71,502 20,081 91,583 Transaction costs 82 49 131 Gain on sale, net of transaction costs $ 13,214 $ 1,033 $ 14,247 The June 30, 2022 and September 6, 2022 agreements contain revenue share provisions that entitle the Company to amounts equal to fifteen percent and a range of fifteen to twenty percent, depending on client, respectively, of the future gross monthly revenue of the clients associated with the sold factored receivable portfolios. As these transactions qualified as sales of a group of entire financial assets, management recognized, as proceeds, the assets obtained and liabilities incurred. Thus, management recorded revenue share assets for the contractual right to receive future cash flows from a third party measured at fair value as of the date of close for the June 30, 2022 and September 6, 2022 agreements totaling $5,210,000 and $1,027,000, respectively. These are financial assets for which management elected the fair value option. They are recorded in other assets in the Company's Consolidated Balance Sheet and are marked to fair value through earnings at each reporting period. For further discussion of changes in the fair value of the revenue share provisions and the period end balance, see Note 10 – Fair Value Disclosures. The gains on sale, net of transaction costs, were included in net gains (losses) on sale of loans in the Company’s Consolidated Statements of Income during the three months ended June 30, 2022 and September 30, 2022, respectively, and were allocated to the Factoring segment. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | SECURITIES Equity Securities With Readily Determinable Fair Values The Company held equity securities with readily determinable fair values of $4,289,000 and $5,191,000 at September 30, 2023 and December 31, 2022, respectively. The gross realized and unrealized gains and losses recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Unrealized gains (losses) on equity securities held at the reporting date $ (137) $ (134) $ (137) $ (588) Realized gains (losses) on equity securities sold during the period — — 18 — $ (137) $ (134) $ (119) $ (588) Equity Securities Without Readily Determinable Fair Values The following table summarizes the Company's investments in equity securities without readily determinable fair values: (Dollars in thousands) September 30, 2023 December 31, 2022 Equity Securities without readily determinable fair value, at cost $ 55,812 $ 39,019 Upward adjustments based on observable price changes, cumulative 10,163 10,163 Equity Securities without readily determinable fair value, carrying value $ 65,975 $ 49,182 Equity securities without readily determinable fair values include Federal Home Loan Bank and other restricted stock, which are reported separately in the Company's consolidated balance sheets. Equity securities without readily determinable fair values also include the Company's investments in the common stock of Trax Group, Inc. and Warehouse Solutions Inc., discussed below, and other investments, which are included in other assets in the Company's consolidated balance sheets. The gross realized and unrealized gains (losses) recognized on equity securities without readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Unrealized gains (losses) on equity securities still held at the reporting date $ — $ — $ — $ 10,163 Realized gains (losses) on equity securities sold during the period — — — — $ — $ — $ — $ 10,163 Trax Group, Inc. On June 22, 2023, the Company made a $9,700,000 minority investment in Trax Group, Inc. ("Trax"), a leader in transportation spend management solutions. The investment in Trax is accounted for as an equity investment without a readily determinable fair value measured under the measurement alternative and is included in other assets in the Company's consolidated balance sheets. Warehouse Solutions Inc. On October 17, 2019, the Company made a minority equity investment of $8,000,000 in Warehouse Solutions Inc. (“WSI”), purchasing 8% of the common stock of WSI and receiving warrants to purchase an additional 10% of the common stock of WSI upon exercise of the warrants at a later date. WSI provides technology solutions to help reduce supply chain costs for a global client base across multiple industries. Although the Company held less than 20% of the voting stock of WSI, the investment in common stock was initially accounted for using the equity method as the Company’s representation on WSI’s board of directors, which was disproportionately larger in size than the common stock investment held, demonstrated that it had significant influence over the investee. On June 10, 2022, the Company entered into two separate agreements with WSI. First, the Company entered into an Affiliate Agreement. The Affiliate Agreement canceled the Company’s outstanding warrants and modified the structure of the existing operating agreement to be consistent with TriumphPay operating as an open loop payments network. By modifying the operating agreement, the Company’s Payments segment operations now have greater ability to operate in the freight shipper audit space. As a result of the Affiliate Agreement, the Company recognized a total loss on impairment of the warrants of $3,224,000, which represented the full book balance of the warrants on the date the Affiliate Agreement was executed. The impairment loss was included in other noninterest income on the Company's consolidated statements of income during the three months ended June 30, 2022. Separately, the Company also entered into an Amended and Restated Investor Rights Agreement (the “Investor Rights Agreement”). The Investor Rights Agreement eliminated the Company’s representation on WSI’s board of directors making the Company a completely passive investor. The Investor Rights Agreement also provided for the Company’s purchase of an additional 10% of WSI’s common stock for $23,000,000 raising the Company’s ownership of WSI’s common stock to 18%. As a passive investor, the Company no longer holds significant influence over the investee and the investment in WSI’s common stock no longer qualifies for equity method accounting. The investment in WSI’s common stock is now accounted for as an equity investment without a readily determinable fair value measured under the measurement alternative. The measurement alternative requires the Company to remeasure its investment in the common stock of WSI only upon the execution of an orderly and observable transaction in an identical or similar instrument. The Company's additional investment in WSI under the Investor Rights Agreement qualified as an orderly and observable transaction for an identical investment in WSI, therefore the fair value of the Company's original 8% common stock investment was required to be adjusted from $4,925,000 at March 31, 2022 to $15,088,000, resulting in a gain of $10,163,000 that was recorded in other noninterest income on the Company's consolidated statements of income during the three months ended June 30, 2022. The Company's investment in WSI totaled $38,088,000 at September 30, 2023 and December 31, 2022 and has been allocated to the Payments segment. Debt Securities Debt securities have been classified in the financial statements as available for sale or held to maturity. The following table summarizes the amortized cost, fair value, and allowance for credit losses of debt securities and the corresponding amounts of gross unrealized gains and losses of available for sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities: (Dollars in thousands) Amortized Gross Gross Allowance Fair September 30, 2023 Available for sale securities: Mortgage-backed securities, residential $ 49,346 $ 9 $ (6,173) $ — $ 43,182 Asset-backed securities 1,243 10 — — 1,253 State and municipal 5,217 — (189) — 5,028 CLO securities 240,162 1,047 (734) — 240,475 Corporate bonds 768 — (19) — 749 SBA pooled securities 1,746 7 (116) — 1,637 Total available for sale securities $ 298,482 $ 1,073 $ (7,231) $ — $ 292,324 (Dollars in thousands) Amortized Gross Gross Fair September 30, 2023 Held to maturity securities: CLO securities $ 6,201 $ 339 $ (1,784) $ 4,756 Allowance for credit losses (2,890) Total held to maturity securities, net of ACL $ 3,311 (Dollars in thousands) Amortized Gross Gross Allowance for Credit Losses Fair December 31, 2022 Available for sale securities: Mortgage-backed securities, residential $ 55,329 $ 235 $ (4,931) $ — $ 50,633 Asset-backed securities 6,389 — (58) — 6,331 State and municipal 13,553 1 (116) — 13,438 CLO Securities 185,068 161 (4,218) — 181,011 Corporate bonds 1,270 1 (8) — 1,263 SBA pooled securities 1,910 29 (111) — 1,828 Total available for sale securities $ 263,519 $ 427 $ (9,442) $ — $ 254,504 (Dollars in thousands) Amortized Gross Gross Fair December 31, 2022 Held to maturity securities: CLO securities $ 6,521 $ 458 $ (1,503) $ 5,476 Allowance for credit losses (2,444) Total held to maturity securities, net of ACL $ 4,077 The amortized cost and estimated fair value of securities at September 30, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Securities Held to Maturity Securities (Dollars in thousands) Amortized Fair Amortized Fair Due in one year or less $ 1,167 $ 1,165 $ — $ — Due from one year to five years 2,212 2,122 1,913 2,085 Due from five years to ten years 72,866 72,665 4,288 2,671 Due after ten years 169,902 170,300 — — 246,147 246,252 6,201 4,756 Mortgage-backed securities, residential 49,346 43,182 — — Asset-backed securities 1,243 1,253 — — SBA pooled securities 1,746 1,637 — — $ 298,482 $ 292,324 $ 6,201 $ 4,756 Proceeds from sales of debt securities and the associated gross gains and losses as well as net gains and losses from calls of debt securities are as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Proceeds $ 10,005 $ — $ 14,005 $ 40,163 Gross gains 5 — 5 2,512 Gross losses — — — — Net gains and losses from calls of securities — — — 2 Debt securities with a carrying amount of approximately $41,520,000 and $93,813,000 at September 30, 2023 and December 31, 2022, respectively, were pledged to secure public deposits, customer repurchase agreements, and for other purposes required or permitted by law. Accrued interest on available for sale securities totaled $5,036,000 and $2,593,000 at September 30, 2023 and December 31, 2022, respectively, and was included in other assets on the Company's consolidated balance sheets. There was no accrued interest related to debt securities reversed against interest income for the three and nine months ended September 30, 2023 and 2022. The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position: Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2023 Available for sale securities: Mortgage-backed securities, residential $ 1,429 $ (100) $ 35,045 $ (6,073) $ 36,474 $ (6,173) Asset-backed securities — — — — — — State and municipal 1,537 (64) 2,986 (125) 4,523 (189) CLO securities 14,966 (34) 78,211 (700) 93,177 (734) Corporate bonds 749 (19) — — 749 (19) SBA pooled securities 220 (6) 1,111 (110) 1,331 (116) $ 18,901 $ (223) $ 117,353 $ (7,008) $ 136,254 $ (7,231) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 Available for sale securities: Mortgage-backed securities, residential $ 26,030 $ (1,507) $ 15,828 $ (3,424) $ 41,858 $ (4,931) Asset-backed securities 1,337 (52) 4,994 (6) 6,331 (58) State and municipal 12,680 (116) — — 12,680 (116) CLO Securities 151,572 (3,407) 19,439 (811) 171,011 (4,218) Corporate bonds 261 (8) — — 261 (8) SBA pooled securities 1,262 (111) — — 1,262 (111) $ 193,142 $ (5,201) $ 40,261 $ (4,241) $ 233,403 $ (9,442) Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At September 30, 2023, the Company had 116 available for sale debt securities in an unrealized loss position without an allowance for credit losses. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of September 30, 2023, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore the Company carried no allowance for credit losses on available for sale debt securities at September 30, 2023. The following table presents the activity in the allowance for credit losses for held to maturity debt securities: (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Held to Maturity CLO Securities 2023 2022 2023 2022 Allowance for credit losses: Beginning balance $ 2,876 $ 2,355 $ 2,444 $ 2,082 Credit loss expense 14 75 446 348 Allowance for credit losses ending balance $ 2,890 $ 2,430 $ 2,890 $ 2,430 The Company’s held to maturity securities are investments in the unrated subordinated notes of collateralized loan obligation funds. These securities are the junior-most in securitization capital structures, and are subject to suspension of distributions if the credit of the underlying loan portfolios deteriorates materially. The ACL on held to maturity securities is estimated at each measurement date on a collective basis by major security type. At September 30, 2023 and December 31, 2022, the Company’s held to maturity securities consisted of three investments in the subordinated notes of collateralized loan obligation (“CLO”) funds. Expected credit losses for these securities are estimated using a discounted cash flow methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Ultimately, the realized cash flows on CLO securities such as these will be driven by a variety of factors, including credit performance of the underlying loan portfolio, adjustments to the portfolio by the asset manager, and the timing of a potential call. At September 30, 2023, $4,772,000 of the Company’s held to maturity securities were classified as nonaccrual. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans Held for Sale The following table presents loans held for sale: (Dollars in thousands) September 30, 2023 December 31, 2022 Commercial 6,416 5,641 Total loans held for sale $ 6,416 $ 5,641 Loans Held for Investment Loans The following table presents the amortized cost and unpaid principal balance of loans held for investment: September 30, 2023 December 31, 2022 (Dollars in thousands) Amortized Unpaid Difference Amortized Unpaid Difference Commercial real estate $ 817,064 $ 818,140 $ (1,076) $ 678,144 $ 679,239 $ (1,095) Construction, land development, land 131,862 132,413 (551) 90,976 91,147 (171) 1-4 family residential 129,588 129,768 (180) 125,981 126,185 (204) Farmland 62,698 62,871 (173) 68,934 69,185 (251) Commercial 1,251,939 1,258,981 (7,042) 1,251,110 1,262,493 (11,383) Factored receivables 1,213,702 1,217,129 (3,427) 1,237,449 1,241,032 (3,583) Consumer 8,166 8,168 (2) 8,868 8,871 (3) Mortgage warehouse 756,509 756,509 — 658,829 658,829 — Total loans held for investment 4,371,528 $ 4,383,979 $ (12,451) 4,120,291 $ 4,136,981 $ (16,690) Allowance for credit losses (34,815) (42,807) $ 4,336,713 $ 4,077,484 The difference between the amortized cost and the unpaid principal is due to (1) premiums and discounts associated with acquired loans totaling $8,127,000 and $13,383,000 at September 30, 2023 and December 31, 2022, respectively, and (2) net deferred origination and factoring fees totaling $4,324,000 and $3,307,000 at September 30, 2023 and December 31, 2022, respectively. Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $28,552,000 and $19,279,000 at September 30, 2023 and December 31, 2022, respectively, and was included in other assets on the Company's consolidated balance sheets. At September 30, 2023 and December 31, 2022, the Company had $219,649,000 and $249,288,000, respectively, of customer reserves associated with factored receivables. These amounts represent customer reserves held to settle any payment disputes or collection shortfalls, may be used to pay customers’ obligations to various third parties as directed by the customer, are periodically released to or withdrawn by customers, and are reported as deposits in the consolidated balance sheets. At September 30, 2023 and December 31, 2022 the balance of the Over-Formula Advance Portfolio, acquired from Transport Financial Solutions during 2020, included in factored receivables was $3,581,000 and $8,202,000, respectively. These balances were fully reserved as of those respective dates. During the three months ended June 30, 2023, new adverse developments with one of the two remaining Over-Formula Advance clients caused us to charge-off the entire Over-Formula Advance amount due from that client. This resulted in a net charge-off of $3,330,000; however, this net charge-off had no impact on credit loss expense as the entire amount had been reserved in a prior period. In accordance with the Agreement reached with Covenant, Covenant reimbursed us for $1,665,000 of this charge-off. At September 30, 2023 the Company carried a separate $19,361,000 receivable (the “Misdirected Payments”) payable by the United States Postal Service (“USPS”) arising from accounts factored to the largest Over-Formula Advance Portfolio carrier. This amount is separate from the acquired Over-Formula Advances. The amounts represented by this receivable were paid by the USPS directly to such customer in contravention of notices of assignment delivered to, and previously honored by, the USPS, which amount was then not remitted back to us by such customer as required. The USPS disputes their obligation to make such payment, citing purported deficiencies in the notices delivered to them. We are a party to litigation in the United States Court of Federal Claims against the USPS seeking a ruling that the USPS was obligated to make the payments represented by this receivable directly to us. Based on our legal analysis and discussions with our counsel advising us on this matter, we continue to believe it is probable that we will prevail in such action and that the USPS will have the capacity to make payment on such receivable. Consequently, we have not reserved for such balance as of September 30, 2023. Loans with carrying amounts of $1,610,699,000 and $1,356,922,000 at September 30, 2023 and December 31, 2022, respectively, were pledged to secure Federal Home Loan Bank borrowing capacity, Paycheck Protection Program Liquidity Facility borrowings and Federal Reserve Bank discount window borrowing capacity. Allowance for Credit Losses The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications. The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows: (Dollars in thousands) Beginning Credit Loss Charge-offs Recoveries Ending Three months ended September 30, 2023 Commercial real estate $ 4,783 $ 1,008 $ (16) $ — $ 5,775 Construction, land development, land 1,235 (5) — 2 1,232 1-4 family residential 1,046 (8) — 1 1,039 Farmland 476 (42) — — 434 Commercial 12,977 (44) (213) 69 12,789 Factored receivables 13,441 389 (1,453) 247 12,624 Consumer 166 (157) (143) 300 166 Mortgage warehouse 846 (90) — — 756 $ 34,970 $ 1,051 $ (1,825) $ 619 $ 34,815 (Dollars in thousands) Beginning Credit Loss Charge-offs Recoveries Ending Three months ended September 30, 2022 Commercial real estate $ 5,167 $ (373) $ — $ — $ 4,794 Construction, land development, land 1,192 (198) — 1 995 1-4 family residential 757 (16) — 1 742 Farmland 490 (23) — — 467 Commercial 12,738 3,431 (208) 59 16,020 Factored receivables 22,212 183 (2,433) 172 20,134 Consumer 197 62 (106) 49 202 Mortgage warehouse 654 103 — — 757 $ 43,407 $ 3,169 $ (2,747) $ 282 $ 44,111 (Dollars in thousands) Beginning Credit Loss Charge-offs Recoveries Ending Nine Months Ended September 30, 2023 Commercial real estate $ 4,459 $ 1,262 $ (16) $ 70 $ 5,775 Construction, land development, land 1,155 73 — 4 1,232 1-4 family residential 838 195 (5) 11 1,039 Farmland 483 (49) — — 434 Commercial 15,918 2,271 (5,559) 159 12,789 Factored receivables 19,121 2,460 (9,566) 609 12,624 Consumer 175 (92) (414) 497 166 Mortgage warehouse 658 98 — — 756 $ 42,807 $ 6,218 $ (15,560) $ 1,350 $ 34,815 (Dollars in thousands) Beginning Credit Loss Charge-offs Recoveries Ending Nine months ended September 30, 2022 Commercial real estate $ 3,961 $ 881 $ (108) $ 60 $ 4,794 Construction, land development, land 827 165 — 3 995 1-4 family residential 468 268 — 6 742 Farmland 562 (95) — — 467 Commercial 14,485 2,417 (1,192) 310 16,020 Factored receivables 20,915 2,298 (3,853) 774 20,134 Consumer 226 180 (313) 109 202 Mortgage warehouse 769 (12) — — 757 $ 42,213 $ 6,102 $ (5,466) $ 1,262 $ 44,111 The decrease in required ACL during the three months ended September 30, 2023 is a function of net charge-offs of $1,206,000 and credit loss expense of $1,051,000. The decrease in required ACL during the nine months ended September 30, 2023 is a function of net charge-offs of $14,210,000 and credit loss expense of $6,218,000. The Company uses the discounted cash flow (DCF) method to estimate ACL for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit and PPP), and consumer loan pools. For all loan pools utilizing the DCF method, the Company utilizes and forecasts national unemployment as a loss driver. The Company also utilizes and forecasts either one-year percentage change in national retail sales (commercial real estate – non multifamily, commercial general, commercial agriculture, commercial asset-based lending, commercial equipment finance, consumer), one-year percentage change in the national home price index (1-4 family residential and construction, land development, land), or one-year percentage change in national gross domestic product (commercial real estate – multifamily) as a second loss driver depending on the nature of the underlying loan pool and how well that loss driver correlates to expected future losses. Consistent forecasts of the loss drivers are used across the loan segments. The Company also forecasts prepayments speeds for use in the DCF models with higher prepayment speeds resulting in lower required ACL levels and vice versa for shorter prepayment speeds. These assumed prepayment speeds are based upon our historical prepayment speeds by loan type adjusted for the expected impact of the future interest rate environment. The impact of these assumed prepayment speeds is lesser in magnitude than the aforementioned loss driver assumptions. For all DCF models at September 30, 2023, the Company has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. The Company leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by the Company when developing the forecast metrics. At September 30, 2023 as compared to December 31, 2022, the Company forecasted a minimal decrease national unemployment, a steeper decrease in one-year percentage change in national retail sales, an increase in one-year percentage change in the national home price index, and a slight increase in one-year percentage change in national gross domestic product. At September 30, 2023 for national unemployment, the Company projected a low percentage in the first quarter followed by a gradual rise in the following three quarters. For percentage change in national retail sales, the Company projected a small increase in the first projected quarter followed by a decline to negative levels over the last three projected quarters to a level below recent actual periods. For percentage change in national home price index, the Company projected a positive increase in the first projected quarter followed by a steep drop to negative levels for the remaining three quarters with such negative levels peaking in the fourth projected quarter. For percentage change in national gross domestic product, management projected low-to-near-zero growth for each projected quarter. At September 30, 2023, the Company slowed its historical prepayment speeds in response to the expected interest rate environment in the macro economy. The Company uses a loss-rate method to estimate expected credit losses for the farmland, liquid credit, factored receivable, and mortgage warehouse loan pools. For each of these loan segments, the Company applies an expected loss ratio based on internal and peer historical losses adjusted as appropriate for qualitative factors. Qualitative loss factors are based on the Company's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. Loss factors used to calculate the required ACL on pools that use the loss-rate method reflect the forecasted economic conditions described above. For the three months ended September 30, 2023, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $164,000. Changes in loan volume and mix increased the required ACL by $395,000. Decreases in required specific reserves decreased the required ACL by $714,000. Net charge-offs during the period were $1,206,000. For the three months ended September 30, 2022, changes in projected loss drivers and prepayment assumptions did not have a meaningful impact on the required ACL. Changes in loan volume and mix decreased the required ACL by $520,000. Increases in required specific reserves increased the required ACL by $1,278,000. Net charge-offs during the period were $2,465,000. For the nine months ended September 30, 2023, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $561,000. Changes in loan volume and mix increased the required ACL by $179,000. Decreases in required specific reserves decreased the required ACL by $8,732,000. Net charge-offs during the period were $14,210,000. For the nine months ended September 30, 2022, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $1,487,000. Changes in loan volume and mix decreased the required ACL by $2,665,000. Increases in required specific reserves increased the required ACL by $3,077,000. Net charge-offs during the period were $4,204,000. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans: (Dollars in thousands) Real Estate Accounts Equipment Other Total ACL September 30, 2023 Commercial real estate $ 1,998 $ — $ 174 $ 1,703 $ 3,875 $ 327 Construction, land development, land — — — — — — 1-4 family residential 1,120 — — 26 1,146 126 Farmland 298 — — 930 1,228 — Commercial 939 — 2,929 20,315 24,183 2,080 Factored receivables — 39,404 — — 39,404 6,904 Consumer — — — 171 171 — Mortgage warehouse — — — — — — Total $ 4,355 $ 39,404 $ 3,103 $ 23,145 $ 70,007 $ 9,437 Commercial loans secured by Other collateral primarily consist of large liquid credit loans secured by the underlying enterprise values of the borrowers. At September 30, 2023 the balance of the Over-Formula Advance Portfolio included in factored receivables was $3,581,000 and was fully reserved. At September 30, 2023 the balance of Misdirected Payments included in factored receivables was $19,361,000 and carried no ACL allocation. (Dollars in thousands) Real Estate Accounts Equipment Other Total ACL December 31, 2022 Commercial real estate $ 1,003 $ — $ — $ 140 $ 1,143 $ 283 Construction, land development, land 150 — — — 150 — 1-4 family residential 1,342 — — 49 1,391 108 Farmland 196 — 108 96 400 — Commercial 193 — 5,334 10,370 15,897 4,737 Factored receivables — 42,409 — — 42,409 13,042 Consumer — — — 91 91 — Mortgage warehouse — — — — — — Total $ 2,884 $ 42,409 $ 5,442 $ 10,746 $ 61,481 $ 18,170 At December 31, 2022 the balance of the Over-Formula Advance Portfolio included in factored receivables was $8,202,000 and carried an ACL allocation of $8,202,000. At December 31, 2022 the balance of Misdirected Payments included in factored receivables was $19,361,000 and carried no ACL allocation. Past Due and Nonaccrual Loans The following tables present an aging of contractually past due loans: (Dollars in thousands) Past Due Past Due Past Due 90 Total Current Total Past Due 90 September 30, 2023 Commercial real estate $ 100 $ 306 $ 1,362 $ 1,768 $ 815,296 $ 817,064 $ — Construction, land development, land — — — — 131,862 131,862 — 1-4 family residential 540 306 245 1,091 128,497 129,588 — Farmland 147 — — 147 62,551 62,698 — Commercial 16,445 2,173 3,650 22,268 1,229,671 1,251,939 — Factored receivables 26,772 6,234 26,346 59,352 1,154,350 1,213,702 26,346 Consumer 17 19 20 56 8,110 8,166 — Mortgage warehouse — — — — 756,509 756,509 — Total $ 44,021 $ 9,038 $ 31,623 $ 84,682 $ 4,286,846 $ 4,371,528 $ 26,346 (Dollars in thousands) Past Due Past Due Past Due 90 Total Current Total Past Due 90 December 31, 2022 Commercial real estate $ 1,301 $ — $ 455 $ 1,756 $ 676,388 $ 678,144 $ — Construction, land development, land — — 145 145 90,831 90,976 — 1-4 family residential 936 531 776 2,243 123,738 125,981 — Farmland — — — — 68,934 68,934 — Commercial 1,630 3,139 2,847 7,616 1,243,494 1,251,110 — Factored receivables 42,797 12,651 37,142 92,590 1,144,859 1,237,449 37,142 Consumer 52 41 2 95 8,773 8,868 — Mortgage warehouse — — — — 658,829 658,829 — Total $ 46,716 $ 16,362 $ 41,367 $ 104,445 $ 4,015,846 $ 4,120,291 $ 37,142 At September 30, 2023 and December 31, 2022, total past due Over-Formula Advances recorded in factored receivables was $3,581,000 and $8,202,000, respectively, all of which was considered past due 90 days or more. At September 30, 2023 and December 31, 2022, the Misdirected Payments totaled $19,361,000, all of which was considered past due 90 days or more. Given the nature of factored receivables, these assets are disclosed as past due 90 days or more still accruing; however, the Company is not recognizing income on the assets. Historically, any income recognized on factored receivables that are past due 90 days or more has not been material. The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses: September 30, 2023 December 31, 2022 (Dollars in thousands) Total Nonaccrual Nonaccrual Total Nonaccrual Nonaccrual Commercial real estate $ 3,801 $ 2,099 $ 871 $ 319 Construction, land development, land — — 150 150 1-4 family residential 1,146 958 1,391 1,238 Farmland 1,228 1,228 400 400 Commercial 24,182 20,671 15,393 3,662 Factored receivables — — — — Consumer 171 171 91 91 Mortgage warehouse — — — — $ 30,528 $ 25,127 $ 18,296 $ 5,860 The following table presents accrued interest on nonaccrual loans reversed through interest income: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Commercial real estate $ 1 $ — $ 17 $ — Construction, land development, land — — — 2 1-4 family residential 2 1 8 1 Farmland 35 — 57 — Commercial 47 — 55 4 Factored receivables — — — — Consumer 1 — 2 — Mortgage warehouse — — — — $ 86 $ 1 $ 139 $ 7 There was no interest earned on nonaccrual loans during the three and nine months ended September 30, 2023 and 2022. The following table presents information regarding nonperforming loans: (Dollars in thousands) September 30, 2023 December 31, 2022 Nonaccrual loans $ 30,528 $ 18,296 Factored receivables greater than 90 days past due 22,765 28,940 Other nonperforming factored receivables (1) — 491 Troubled debt restructurings accruing interest — 503 $ 53,293 $ 48,230 (1) Other nonperforming factored receivables represent the portion of the Over-Formula Advance Portfolio that is not covered by Covenant's indemnification as well as other nonperforming factored receivables less than 90 days past due. This amount is also considered Classified from a risk rating perspective. Credit Quality Information The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including: current collateral and financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk on a regular basis. Large groups of smaller balance homogeneous loans, such as consumer loans, are analyzed primarily based on payment status. The Company uses the following definitions for risk ratings: Pass – Pass rated loans have low to average risk and are not otherwise classified. Classified – Classified loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Certain classified loans have the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. As of September 30, 2023 and December 31, 2022, based on the most recent analysis performed, the risk category of loans is as follows: Revolving Revolving Total (Dollars in thousands) Year of Origination September 30, 2023 2023 2022 2021 2020 2019 Prior Commercial real estate Pass $ 140,428 $ 189,753 $ 122,245 $ 55,488 $ 24,826 $ 106,522 $ 87,141 $ 122 $ 726,525 Classified — 38,008 3,100 46,587 747 2,097 — — 90,539 Total commercial real estate $ 140,428 $ 227,761 $ 125,345 $ 102,075 $ 25,573 $ 108,619 $ 87,141 $ 122 $ 817,064 YTD gross charge-offs $ — $ — $ — $ — $ 16 $ — $ — $ — $ 16 Construction, land development, land Pass $ 35,355 $ 50,828 $ 30,928 $ 5,798 $ 349 $ 6,007 $ 2,597 $ — $ 131,862 Classified — — — — — — — — — Total construction, land development, land $ 35,355 $ 50,828 $ 30,928 $ 5,798 $ 349 $ 6,007 $ 2,597 $ — $ 131,862 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 1-4 family residential Pass $ 7,705 $ 10,460 $ 6,003 $ 10,253 $ 4,441 $ 50,464 $ 37,909 $ 1,173 $ 128,408 Classified 167 16 15 175 72 608 127 — 1,180 Total 1-4 family residential $ 7,872 $ 10,476 $ 6,018 $ 10,428 $ 4,513 $ 51,072 $ 38,036 $ 1,173 $ 129,588 YTD gross charge-offs $ 5 $ — $ — $ — $ — $ — $ — $ — $ 5 Farmland Pass $ 16,003 $ 13,463 $ 5,658 $ 7,913 $ 4,582 $ 11,085 $ 1,778 $ 73 $ 60,555 Classified 190 — 19 — — 1,934 — — 2,143 Total farmland $ 16,193 $ 13,463 $ 5,677 $ 7,913 $ 4,582 $ 13,019 $ 1,778 $ 73 $ 62,698 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 138,634 $ 306,209 $ 110,662 $ 95,731 $ 33,386 $ 23,715 $ 507,606 $ 1,253 $ 1,217,196 Classified 127 18,341 4,958 9,340 649 641 687 — 34,743 Total commercial $ 138,761 $ 324,550 $ 115,620 $ 105,071 $ 34,035 $ 24,356 $ 508,293 $ 1,253 $ 1,251,939 YTD gross charge-offs $ 2 $ 516 $ 4,496 $ 368 $ 9 $ 133 $ 35 $ — $ 5,559 Factored receivables Pass $ 1,175,928 $ — $ — $ 3,581 $ — $ — $ — $ — $ 1,179,509 Classified 14,832 — — 19,361 — — — — 34,193 Total factored receivables $ 1,190,760 $ — $ — $ 22,942 $ — $ — $ — $ — $ 1,213,702 YTD gross charge-offs $ 3,943 $ 2,293 $ — $ 3,330 $ — $ — $ — $ — $ 9,566 Consumer Pass $ 2,226 $ 2,273 $ 877 $ 577 $ 135 $ 1,862 $ 46 $ — $ 7,996 Classified — — 87 — — 83 — — 170 Total consumer $ 2,226 $ 2,273 $ 964 $ 577 $ 135 $ 1,945 $ 46 $ — $ 8,166 YTD gross charge-offs $ 374 $ 9 $ 16 $ 8 $ 2 $ 5 $ — $ — $ 414 Mortgage warehouse Pass $ 756,509 $ — $ — $ — $ — $ — $ — $ — $ 756,509 Classified — — — — — — — — — Total mortgage warehouse $ 756,509 $ — $ — $ — $ — $ — $ — $ — $ 756,509 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans Pass $ 2,272,788 $ 572,986 $ 276,373 $ 179,341 $ 67,719 $ 199,655 $ 637,077 $ 2,621 $ 4,208,560 Classified 15,316 56,365 8,179 75,463 1,468 5,363 814 — 162,968 Total loans $ 2,288,104 $ 629,351 $ 284,552 $ 254,804 $ 69,187 $ 205,018 $ 637,891 $ 2,621 $ 4,371,528 YTD gross charge-offs $ 4,324 $ 2,818 $ 4,512 $ 3,706 $ 27 $ 138 $ 35 $ — $ 15,560 Revolving Revolving Total (Dollars in thousands) Year of Origination December 31, 2022 2022 2021 2020 2019 2018 Prior Commercial real estate Pass $ 231,427 $ 156,895 $ 198,541 $ 28,033 $ 17,786 $ 35,658 $ 3,675 $ — $ 672,015 Classified 3,668 551 1,855 39 — 16 — — 6,129 Total commercial real estate $ 235,095 $ 157,446 $ 200,396 $ 28,072 $ 17,786 $ 35,674 $ 3,675 $ — $ 678,144 Construction, land development, land Pass $ 71,236 $ 11,328 $ 4,535 $ 3,186 $ 35 $ 506 $ — $ — $ 90,826 Classified — — 5 — — 145 — — 150 Total construction, land development, land $ 71,236 $ 11,328 $ 4,540 $ 3,186 $ 35 $ 651 $ — $ — $ 90,976 1-4 family residential Pass $ 26,306 $ 22,639 $ 9,536 $ 2,929 $ 3,528 $ 20,910 $ 38,361 $ 300 $ 124,509 Classified 137 199 7 53 1 1,006 69 — 1,472 Total 1-4 family residential $ 26,443 $ 22,838 $ 9,543 $ 2,982 $ 3,529 $ 21,916 $ 38,430 $ 300 $ 125,981 Farmland Pass $ 18,190 $ 7,291 $ 10,027 $ 2,699 $ 6,742 $ 18,569 $ 1,016 $ 204 $ 64,738 Classified 1,062 2,796 120 108 — 110 — — 4,196 Total farmland $ 19,252 $ 10,087 $ 10,147 $ 2,807 $ 6,742 $ 18,679 $ 1,016 $ 204 $ 68,934 Commercial Pass $ 358,983 $ 181,933 $ 136,635 $ 41,912 $ 5,842 $ 12,145 $ 486,889 $ 161 $ 1,224,500 Classified 10,721 10,579 3,767 1,038 96 116 293 — 26,610 Total commercial $ 369,704 $ 192,512 $ 140,402 $ 42,950 $ 5,938 $ 12,261 $ 487,182 $ 161 $ 1,251,110 Factored receivables Pass $ 1,196,912 $ — $ 7,710 $ — $ — $ — $ — $ — $ 1,204,622 Classified 12,974 — 19,853 — — — — — 32,827 Total factored receivables $ 1,209,886 $ — $ 27,563 $ — $ — $ — $ — $ — $ 1,237,449 Consumer Pass $ 2,768 $ 1,981 $ 894 $ 304 $ 266 $ 2,418 $ 147 $ — $ 8,778 Classified — 1 2 — 8 79 — — 90 Total consumer $ 2,768 $ 1,982 $ 896 $ 304 $ 274 $ 2,497 $ 147 $ — $ 8,868 Mortgage warehouse Pass $ 658,829 $ — $ — $ — $ — $ — $ — $ — $ 658,829 Classified — — — — — — — — — Total mortgage warehouse $ 658,829 $ — $ — $ — $ — $ — $ — $ — $ 658,829 Total loans Pass $ 2,564,651 $ 382,067 $ 367,878 $ 79,063 $ 34,199 $ 90,206 $ 530,088 $ 665 $ 4,048,817 Classified 28,562 14,126 25,609 1,238 105 1,472 362 — 71,474 Total loans $ 2,593,213 $ 396,193 $ 393,487 $ 80,301 $ 34,304 $ 91,678 $ 530,450 $ 665 $ 4,120,291 Loan Modifications to Borrowers Experiencing Financial Difficulty The following tables present the amortized cost basis at the end of the reporting period of the loans modifications to borrowers experiencing financial difficulty: Term Extension Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Amortized Cost % of Portfolio Commercial real estate $ 111 — % $ 111 — % 1-4 family residential 271 0.2 % 271 0.2 % Farmland 762 1.2 % 762 1.2 % Commercial 1,913 0.2 % 1,913 0.2 % $ 3,057 0.1 % $ 3,057 0.1 % Term Extension and Rate Reduction Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Amortized Cost % of Portfolio Commercial real estate $ 83,344 10.2 % $ 83,344 10.2 % Commercial 549 — % 549 — % $ 83,893 1.9 % $ 83,893 1.9 % The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty: Term Extension Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Commercial real estate Modification added a weighted average 0.3 years to the life of the modified loans. Modification added a weighted average 0.9 years to the life of the modified loans. 1-4 family residential Modification added a weighted average 0.5 years to the life of the modified loans. Modification added a weighted average 0.5 years to the life of the modified loans. Farmland Modification added a weighted average 0.5 years to the life of the modified loans. Modification added a weighted average 0.5 years to the life of the modified loans. Commercial Modification added a weighted average 0.5 years to the life of the modified loans. Modification added a weighted average 0.6 years to the life of the modified loans. Term Extension and rate Reduction Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Commercial real estate Modification added a weighted average 0.5 years to the life of the modified loans and reduced the weighted average contractual interest rate from 10.1% to 5.1%. Modification added a weighted average 0.5 years to the life of the modified loans and reduced the weighted average contractual interest rate from 10.1% to 5.1%. Commercial Modification added a weighted average 0.3 years to the life of the modified loans and reduced the weighted average contractual interest rate from 9.5% to 8.6%. Modification added a weighted average 0.3 years to the life of the modified loans and reduced the weighted average contractual interest rate from 9.5% to 8.6%. Generally, if a loan to a borrower experiencing financial difficulty is modified, the Company will seek to obtain credit enhancements when possible. The following table presents the payment status of loans that have been modified in the last twelve months: September 30, 2023 (Dollars in thousands) Current Past Due Past Due Commercial real estate $ 83,455 $ — $ — 1-4 family residential 271 — — Farmland 762 — — Commercial 2,462 — — $ 86,950 $ — $ — At September 30, 2023, the Company had $325,000 of commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company modified the terms of the loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension during the current period. There were no loans to borrowers experiencing financial difficulty that had a payment default during the three and nine months ended September 30, 2023 and were modified in the twelve months prior to that default. Default is determined at 90 or more days past due, upon charge-off, or upon foreclosure. Modified loans in default are individually evaluated for the allowance for credit losses or if the modified loan is deemed uncollectible, the loan, or a portion of the loan, is written off and the allowance for credit losses is adjusted accordingly. Residential Real Estate Loans In Process of Foreclosure At September 30, 2023 and December 31, 2022, the Company had $0 and $129,000, respectively, in 1-4 family residential real estate loans for which formal foreclosure proceedings were in process. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets consist of the following: (Dollars in thousands) September 30, 2023 December 31, 2022 Goodwill $ 233,709 $ 233,709 September 30, 2023 December 31, 2022 (Dollars in thousands) Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Core deposit intangibles $ 43,578 $ (37,490) $ 6,088 $ 43,578 $ (35,347) $ 8,231 Software intangible assets 16,932 (9,877) 7,055 16,932 (6,702) 10,230 Other intangible assets 33,452 (20,195) 13,257 30,410 (16,813) 13,597 $ 93,962 $ (67,562) $ 26,400 $ 90,920 $ (58,862) $ 32,058 The changes in goodwill and intangible assets during the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 262,958 $ 270,666 $ 265,767 $ 276,856 Acquired intangible assets — 851 3,042 851 Acquired goodwill - measurement period adjustment — — — (18) Goodwill transferred to assets held for sale — — — (3,217) Intangible assets transferred to assets held for sale — — — (1,394) Goodwill transferred from assets held for sale — — — 3,217 Intangible assets transferred from assets held for sale — — — 1,394 Amortization of intangibles (2,849) (2,913) (8,700) (9,085) Ending balance $ 260,109 $ 268,604 $ 260,109 $ 268,604 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s interest bearing deposits. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Beginning in June 2020, such derivatives were used to hedge the variable cash flows associated with interest bearing deposits. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminated, or treatment of the derivative as a hedge is no longer appropriate or intended. During the three months ended March 31, 2022, the Company terminated its single derivative with a notional value totaling $200,000,000, resulting in a termination value of $9,316,000. During the three months ended March 31, 2022 and June 30, 2022, the Company reclassified $233,000 and $232,000, respectively, into earnings through interest expense in the consolidated statements of income. During the three months ended June 30, 2022, the Company terminated the hedged funding, incurring a termination fee of $732,000, which was recognized through interest expense in the consolidated statements of income, and reclassified the remaining $8,851,000 unrealized gain on the terminated derivative into earnings through other noninterest income in the consolidated statements of income. The following table presents the pre-tax impact of the terminated cash flow hedge on AOCI: Nine Months Ended (Dollars in thousands) September 30, 2022 Unrealized gains on terminated hedges Beginning Balance $ — Unrealized gains arising during the period 9,316 Reclassification adjustments for amortization of unrealized (gains) into net income (9,316) Ending Balance $ — The Company did not have any derivative financial instruments at September 30, 2023 and December 31, 2022. The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income, net of tax: Amount of Amount of Location of Amount of Amount of (Dollars in thousands) Nine Months Ended September 30, 2022 Derivatives in cash flow hedging relationships: Interest rate swaps $ 2,398 $ 2,398 Interest Expense $ 7,103 $ 7,103 |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES Collateralized Loan Obligation Funds – Closed The Company holds investments in the subordinated notes of the following closed Collateralized Loan Obligation (“CLO”) funds: (Dollars in thousands) Offering Offering Trinitas CLO IV, LTD (Trinitas IV) June 2, 2016 $ 406,650 Trinitas CLO V, LTD (Trinitas V) September 22, 2016 $ 409,000 Trinitas CLO VI, LTD (Trinitas VI) June 20, 2017 $ 717,100 The net carrying amounts of the Company’s investments in the subordinated notes of the CLO funds, which represent the Company’s maximum exposure to loss as a result of its involvement with the CLO funds, totaled $3,311,000 and $4,077,000 at September 30, 2023 and December 31, 2022, respectively, and are classified as held to maturity securities within the Company’s consolidated balance sheets. The Company performed a consolidation analysis to confirm whether the Company was required to consolidate the assets, liabilities, equity or operations of the closed CLO funds in its financial statements. The Company concluded that the closed CLO funds were variable interest entities and that the Company holds variable interests in the entities in the form of its investments in the subordinated notes of entities. However, the Company also concluded that the Company does not have the power to direct the activities that most significantly impact the entities’ economic performance. As a result, the Company was not the primary beneficiary and therefore was not required to consolidate the assets, liabilities, equity, or operations of the closed CLO funds in the Company’s financial statements. |
Legal Contingencies
Legal Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | LEGAL CONTINGENCIES The Company, through its direct and indirect wholly owned subsidiaries, has purchased and received payments on accounts receivable payable to Surge Transportation, Inc. (‘Surge’), a licensed freight broker, as part of factoring services provided to such entity. On July 24, 2023, Surge filed for Chapter 11 Bankruptcy in the US Bankruptcy Court in the Middle District of Florida. In connection with the bankruptcy proceedings, certain claimants comprised of motor carriers, contingency collection agents, and factoring companies have filed complaints alleging that such entities have an ownership interest in, or other rights to, amounts paid to the Company in respect of such purchased accounts receivable. The Court has not yet ruled on such complaints. In the event of an adverse ruling with respect to such complaints, Triumph may be required to disgorge or pay to such claimants all or a portion of the amounts it has collected on such receivables. Due to the uncertainty of the existence of or extent of any loss exposure, Triumph is unable to calculate any reserve loss at this time. Additionally, other various legal claims have arisen from time to time in the normal course of business which, in the opinion of management as of September 30, 2023, will have no material effect on the Company’s consolidated financial statements. |
Off-Balance Sheet Loan Commitme
Off-Balance Sheet Loan Commitments | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance Sheet Loan Commitments | OFF-BALANCE SHEET LOAN COMMITMENTS From time to time, the Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments. The contractual amounts of financial instruments with off-balance sheet risk were as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Unused lines of credit $ 15,441 $ 563,103 $ 578,544 $ 1,417 $ 487,965 $ 489,382 Standby letters of credit $ 15,725 $ 9,809 $ 25,534 $ 12,309 $ 4,897 $ 17,206 Commitments to purchase loans $ — $ 17,321 $ 17,321 $ — $ 53,572 $ 53,572 Mortgage warehouse commitments $ — $ 851,564 $ 851,564 $ — $ 1,055,117 $ 1,055,117 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed above do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if considered necessary by the Company, upon extension of credit, is based on management’s credit evaluation of the customer. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer, the Company has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. The credit risk to the Company in issuing letters of credit is essentially the same as that involved in extending loan facilities to its customers. Commitments to purchase loans represent loans purchased by the Company that have not yet settled. Mortgage warehouse commitments are unconditionally cancellable and represent the unused capacity on mortgage warehouse facilities the Company has approved. The Company reserves the right to refuse to buy any mortgage loans offered for sale by a customer, for any reason, at the Company’s sole and absolute discretion. The Company records an allowance for credit losses on off-balance sheet credit exposures through a charge to credit loss expense on the Company’s consolidated statements of income. At September 30, 2023 and December 31, 2022, the allowance for credit losses on off-balance sheet credit exposures totaled $3,010,000 and $3,606,000, respectively, and was included in other liabilities on the Company’s consolidated balance sheets. The following table presents credit loss expense for off balance sheet credit exposures: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Credit loss expense (benefit) $ (253) $ (598) $ (596) $ (402) |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE DISCLOSURES Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The methods of determining the fair value of assets and liabilities presented in this note are consistent with the methodologies disclosed in Note 17 of the Company’s 2022 Form 10-K. Assets and liabilities measured at fair value on a recurring basis are summarized in the table below. (Dollars in thousands) Fair Value Measurements Using Total September 30, 2023 Level 1 Level 2 Level 3 Assets measured at fair value on a recurring basis Securities available for sale Mortgage-backed securities, residential $ — $ 43,182 $ — $ 43,182 Asset-backed securities — 1,253 — 1,253 State and municipal — 5,028 — 5,028 CLO securities — 240,475 — 240,475 Corporate bonds — 749 — 749 SBA pooled securities — 1,637 — 1,637 $ — $ 292,324 $ — $ 292,324 Equity securities with readily determinable fair values Mutual fund $ 4,289 $ — $ — $ 4,289 Loans held for sale $ — $ 6,416 $ — $ 6,416 Indemnification asset $ — $ — $ 1,701 $ 1,701 Revenue share asset $ — $ — $ 2,696 $ 2,696 Liabilities measured at fair value on a recurring basis Return of premium liability $ — $ — $ 272 $ 272 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2022 Level 1 Level 2 Level 3 Assets measured at fair value on a recurring basis Securities available for sale Mortgage-backed securities, residential $ — $ 50,633 $ — $ 50,633 Asset-backed securities — 6,331 — 6,331 State and municipal — 13,438 — 13,438 CLO Securities — 181,011 — 181,011 Corporate bonds — 1,263 — 1,263 SBA pooled securities — 1,828 — 1,828 $ — $ 254,504 $ — $ 254,504 Equity securities with readily determinable fair values Mutual fund $ 5,191 $ — $ — $ 5,191 Loans held for sale $ — $ 5,641 $ — $ 5,641 Indemnification asset $ — $ — $ 3,896 $ 3,896 Revenue share asset $ — $ — $ 5,515 $ 5,515 Liabilities measured at fair value on a recurring basis Return of premium liability $ — $ — $ 575 $ 575 There were no transfers between levels during 2023 or 2022. Indemnification Asset The fair value of the indemnification asset is calculated as the present value of the estimated cash payments expected to be received from Covenant for probable losses on the covered Over-Formula Advance Portfolio acquired during 2020. The cash flows are discounted at a rate to reflect the uncertainty of the timing and receipt of the payments from Covenant. The indemnification asset is reviewed quarterly and changes to the asset are recorded as adjustments to other noninterest income or expense, as appropriate, within the Consolidated Statements of Income. The indemnification asset fair value is considered a Level 3 classification. At September 30, 2023 and December 31, 2022, the estimated cash payments expected to be received from Covenant for probable losses on the covered Over-Formula Advance Portfolio were approximately $1,791,000 and $4,101,000, respectively, and a discount rate of 5.0% and 5.0%, respectively, was applied to calculate the present value of the indemnification asset. A reconciliation of the opening balance to the closing balance of the fair value of the indemnification asset is as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 1,905 $ 4,377 $ 3,896 $ 4,786 Indemnification asset recognized in business combination — — — — Change in fair value of indemnification asset recognized in earnings (204) (204) (530) (613) Indemnification reduction — — (1,665) — Ending balance $ 1,701 $ 4,173 $ 1,701 $ 4,173 Revenue Share Asset On June 30, 2022 and September 6, 2022, the Company entered into and closed two separate agreements to sell two separate portfolios of factored receivables. The June 30, 2022 agreement contains revenue share provisions that entitles the Company to an amount equal to fifteen percent of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. The September 6, 2022 agreement contains revenue share provisions that entitles the Company to an amount ranging from fifteen to twenty percent, depending on the client, of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. The fair value of the revenue share assets is calculated each reporting period, and changes in the fair value of the revenue share assets are recorded in noninterest income in the consolidated statements of income. The revenue share asset fair value is considered a Level 3 classification. At September 30, 2023 and December 31, 2022, the estimated cash payments expected to be received from the purchaser for the Company's share of future gross monthly revenue as $3,546,000 and $7,613,000, respectively, and a discount rate of 10.0% was applied to calculate the present value of the revenue share asset. A reconciliation of the opening balance to the closing balance of the fair value of the revenue share asset is as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 3,053 $ 5,210 $ 5,515 $ — Revenue share asset recognized — 1,027 — 6,237 Change in fair value of revenue share asset recognized in earnings (78) 171 (1,867) 171 Revenue share payments received (279) (230) (952) (230) Ending balance $ 2,696 $ 6,178 $ 2,696 $ 6,178 Return of Premium Liability On June 23, 2022, the Company made the decision to sell and closed on the sale of a portfolio of equipment loans for cash consideration. The associated agreement contains a provision that in the event that a sold loan is prepaid in full prior to the due date of the final scheduled contractual payment, the Company will return a pro-rata portion of the premium calculated as of the date of such prepayment in full. The fair value of the return of premium liability is calculated each reporting period, and changes in the fair value of the return of premium liability are recorded in noninterest income in the consolidated statements of income. The return of premium liability is considered a Level 3 classification. At September 30, 2023 and December 31, 2022, the fair value of the estimated premium expected to be returned to the purchaser for sold loans prepaid in full was calculated as the difference between the discounted cash flows of each sold loan assuming no prepayments and the discounted cash flows of each sold loan assuming an 11.0% and 11.0% prepayment speed, respectively; consistent with management's expected prepayment speed. A reconciliation of the opening balance to the closing balance of the fair value of the return of premium liability is as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 376 $ 708 $ 575 $ — Return of premium liability recognized — — — 708 Change in fair value of return of premium liability recognized in earnings (104) (104) (303) (104) Return of premium payments made — (34) — (34) Ending balance $ 272 $ 570 $ 272 $ 570 Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at September 30, 2023 and December 31, 2022. (Dollars in thousands) Fair Value Measurements Using Total September 30, 2023 Level 1 Level 2 Level 3 Collateral dependent loans Commercial real estate $ — $ — $ 1,374 $ 1,374 1-4 family residential — — 63 63 Commercial — — 1,431 1,431 Factored receivables — — 32,500 32,500 $ — $ — $ 35,368 $ 35,368 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2022 Level 1 Level 2 Level 3 Collateral dependent loans Commercial real estate $ — $ — $ 269 $ 269 1-4 family residential — — 46 46 Commercial — — 6,994 6,994 Factored receivables — — 29,367 29,367 Equity investment without readily determinable fair value 38,088 — — 38,088 $ 38,088 $ — $ 36,676 $ 74,764 Collateral Dependent Loans Specific Allocation of ACL : A loan is considered to be a collateral dependent loan when, based on current information and events, the Company expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Company has determined that the borrower is experiencing financial difficulty as of the measurement date. The ACL is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the underlying fair value of the loan’s collateral. For real estate loans, fair value of the loan’s collateral is determined by third party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 8% of the appraised value. For non-real estate loans, fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at September 30, 2023 and December 31, 2022 were as follows: (Dollars in thousands) Carrying Fair Value Measurements Using Total September 30, 2023 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 337,583 $ 337,583 $ — $ — $ 337,583 Securities - held to maturity 3,311 — — 4,756 4,756 Loans not previously presented, gross 4,336,160 129,815 — 4,111,712 4,241,527 FHLB and other restricted stock 10,101 N/A N/A N/A N/A Accrued interest receivable 33,930 33,930 — — 33,930 Financial liabilities: Deposits 4,487,051 — 4,478,382 — 4,478,382 Federal Home Loan Bank advances 30,000 — 30,000 — 30,000 Subordinated notes 108,454 — 88,057 — 88,057 Junior subordinated debentures 41,592 — 43,392 — 43,392 Accrued interest payable 8,382 8,382 — — 8,382 (Dollars in thousands) Carrying Fair Value Measurements Using Total December 31, 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 408,182 $ 408,182 $ — $ — $ 408,182 Securities - held to maturity 4,077 — — 5,476 5,476 Loans not previously presented, gross 4,088,411 187,729 — 3,805,701 3,993,430 FHLB and other restricted stock 6,252 N/A N/A N/A N/A Accrued interest receivable 21,977 21,977 — — 21,977 Financial liabilities: Deposits 4,171,336 — 4,159,695 — 4,159,695 Customer repurchase agreements 340 — 340 — 340 Federal Home Loan Bank advances 30,000 — 30,000 — 30,000 Subordinated notes 107,800 — 104,400 — 104,400 Junior subordinated debentures 41,158 — 42,721 — 42,721 Accrued interest payable 2,830 2,830 — — 2,830 |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Matters | REGULATORY MATTERS The Company (on a consolidated basis) and TBK Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s or TBK Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and TBK Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and TBK Bank to maintain minimum amounts and ratios (set forth in the table below) of total, common equity Tier 1, and Tier 1 capital to risk weighted assets, and of Tier 1 capital to average assets. Management believes, as of September 30, 2023 and December 31, 2022, the Company and TBK Bank meet all capital adequacy requirements to which they are subject. As of September 30, 2023 and December 31, 2022, TBK Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” TBK Bank must maintain minimum total risk based, common equity Tier 1 risk based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since September 30, 2023 that management believes have changed TBK Bank’s category. The actual capital amounts and ratios for the Company and TBK Bank are presented in the following table. (Dollars in thousands) Actual Minimum for Capital To Be Well September 30, 2023 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk weighted assets) Triumph Financial, Inc. $ 790,082 15.8% $ 400,042 8.0% N/A N/A TBK Bank, SSB $ 746,239 15.0% $ 397,994 8.0% $ 497,493 10.0% Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $ 646,435 12.9% $ 300,667 6.0% N/A N/A TBK Bank, SSB $ 713,628 14.4% $ 297,345 6.0% $ 396,460 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $ 559,843 11.2% $ 224,937 4.5% N/A N/A TBK Bank, SSB $ 713,628 14.4% $ 223,009 4.5% $ 322,124 6.5% Tier 1 capital (to average assets) Triumph Financial, Inc. $ 646,435 12.4% $ 208,527 4.0% N/A N/A TBK Bank, SSB $ 713,628 13.7% $ 208,359 4.0% $ 260,448 5.0% As of December 31, 2022 Total capital (to risk weighted assets) Triumph Financial, Inc. $ 829,928 17.7% $ 375,109 8.0% N/A N/A TBK Bank, SSB $ 732,785 15.8% $ 371,030 8.0% $ 463,788 10.0% Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $ 684,381 14.6% $ 281,252 6.0% N/A N/A TBK Bank, SSB $ 697,022 15.0% $ 278,809 6.0% $ 371,745 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $ 598,223 12.7% $ 211,969 4.5% N/A N/A TBK Bank, SSB $ 697,022 15.0% $ 209,107 4.5% $ 302,043 6.5% Tier 1 capital (to average assets) Triumph Financial, Inc. $ 684,381 13.0% $ 210,579 4.0% N/A N/A TBK Bank, SSB $ 697,022 13.2% $ 211,219 4.0% $ 264,023 5.0% As permitted by the interim final rule issued on March 27, 2020 by the federal banking regulatory agencies, the Company elected the option to delay the estimated impact on regulatory capital of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which was effective January 1, 2020. The initial impact of adoption of ASU 2016-13 as well as 25% of the quarterly increases in the allowance for credit losses subsequent to adoption of ASU 2016-13 (collectively the “transition adjustments”) was delayed for two years. After two years, the cumulative amount of the transition adjustments became fixed and will be phased out of the regulatory capital calculations evenly over a three-year period, with 75% recognized in year three, 50% recognized in year four, and 25% recognized in year five. After five years, the temporary regulatory capital benefits will be fully reversed. Dividends paid by TBK Bank are limited to, without prior regulatory approval, current year earnings and earnings less dividends paid during the preceding two years. The capital conservation buffer set forth by the Basel III regulatory capital framework was 2.5% at September 30, 2023 and December 31, 2022. The capital conservation buffer is designed to absorb losses during periods of economic stress and requires increased capital levels for the purpose of capital distributions and other payments. Failure to meet the full amount of the buffer will result in restrictions on the Company’s ability to make capital distributions, including dividend payments and stock repurchases, and to pay discretionary bonuses to executive officers. At September 30, 2023 and December 31, 2022, the Company’s and TBK Bank’s risk based capital exceeded the required capital conservation buffer. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY The following summarizes the capital structure of Triumph Financial, Inc. Preferred Stock Series C (Dollars in thousands, except per share amounts) September 30, 2023 December 31, 2022 Shares authorized 51,750 51,750 Shares issued 45,000 45,000 Shares outstanding 45,000 45,000 Par value per share $ 0.01 $ 0.01 Liquidation preference per share $ 1,000 $ 1,000 Liquidation preference amount $ 45,000 $ 45,000 Dividend rate 7.125 % 7.125 % Dividend payment dates Quarterly Quarterly Common Stock September 30, 2023 December 31, 2022 Shares authorized 50,000,000 50,000,000 Shares issued 28,975,206 28,321,716 Treasury shares (5,683,513) (4,268,131) Shares outstanding 23,291,693 24,053,585 Par value per share $ 0.01 $ 0.01 Stock Repurchase Programs On February 7, 2022, the Company announced that its board of directors had authorized the Company to repurchase up to $50,000,000 of its outstanding common stock. During the three months ended March 31, 2022, the Company repurchased 14,810 shares into treasury stock under the Company's stock repurchase program at an average price of $88.81, for a total of $1,316,000. During the three months ended June 30, 2022, the Company repurchased 694,985 shares into treasury stock under the Company's stock repurchase program at an average price of $70.02, for a total of $48,684,000, effectively completing the repurchase program. On May 23, 2022, the Company announced that its board of directors had authorized the Company to repurchase up to an additional $75,000,000 of its outstanding common stock. On November 7, 2022, the repurchase authorization was increased to $100,000,000 in connection with the commencement of a modified "Dutch auction" tender offer (the "Tender Offer"). During the three months ended December 31, 2022, the Company repurchased 408,615 shares of its common stock in the Tender Offer at a price of $58.00 per share, for an aggregate cost of $24,772,000, including fees and expenses related to the tender offer of $1,072,000. On February 1, 2023, the Company entered into an accelerated share repurchase (“ASR”) agreement to repurchase $70,000,000 of the Company’s common stock. The ASR is part of the Company’s previously announced plan to repurchase up to $100,000,000 of the Company’s common stock and is within the remaining amount authorized by the Company’s Board of Directors pursuant to such plan. Under the terms of the ASR agreement, the Company received an initial delivery of 961,373 common shares representing approximately 80% of the expected total to be repurchased. On April 28, 2023, the ASR was completed and the Company received an additional delivery of 247,954 common shares. In connection with the completion of the ASR, on May 4, 2023, the Company announced that its board of directors had authorized the Company to repurchase up to an additional $50,000,000 of its outstanding common stock in open market transactions or through privately negotiated transactions at the Company's discretion. The amount, timing and nature of any share repurchases will be based on a variety of factors, including the trading price of the Company's common stock, applicable securities laws restrictions, regulatory limitations and market and economic factors. The repurchase program is authorized for a period of up to one year and does not require the Company to repurchase any specific number of shares. The repurchase program may be modified, suspended or discontinued at any time. The Company has not repurchased any shares under the new share repurchase program. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | STOCK BASED COMPENSATION Stock based compensation expense that has been charged against income was $3,714,000 and $4,296,000 for the three months ended September 30, 2023 and 2022, respectively, and $9,915,000 and $17,128,000 for the nine months ended September 30, 2023 and 2022, respectively. 2014 Omnibus Incentive Plan The Company’s 2014 Omnibus Incentive Plan (“Omnibus Incentive Plan”) provides for the grant of nonqualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other awards that may be settled in, or based upon the value of, the Company’s common stock. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 2,900,000 shares. Restricted Stock Awards A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2023 were as follows: Nonvested RSAs Shares Weighted-Average Nonvested at January 1, 2023 230,486 70.34 Granted 13,374 59.69 Vested (107,623) 60.34 Forfeited (12,978) 75.48 Nonvested at September 30, 2023 123,259 77.07 RSAs granted to employees under the Omnibus Incentive Plan typically vest immediately or over four years. Compensation expense for the RSAs will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. As of September 30, 2023, there was $2,500,000 of unrecognized compensation cost related to the nonvested RSAs. The cost is expected to be recognized over a remaining period of 1.56 years. Restricted Stock Units A summary of changes in the Company’s nonvested Restricted Stock Units (“RSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2023 were as follows: Nonvested RSUs Shares Weighted-Average Nonvested at January 1, 2023 211,300 59.45 Granted 139,836 52.59 Vested (114,509) 43.19 Forfeited (5,112) 63.87 Nonvested at September 30, 2023 231,515 63.25 RSUs granted to employees under the Omnibus Incentive Plan typically vest over four Market Based Performance Stock Units A summary of changes in the Company’s nonvested Market Based Performance Stock Units (“Market Based PSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2023 were as follows: Nonvested Market Based PSUs Shares Weighted-Average Nonvested at January 1, 2023 112,486 $ 55.57 Granted 78,872 78.15 Incremental shares earned 52,694 N/A Vested (122,969) 36.10 Forfeited (3,537) 78.45 Nonvested at September 30, 2023 117,546 $ 87.55 Market Based PSUs granted to employees under the Omnibus Incentive Plan vest after three The fair value of the Market Based PSUs granted was determined using the following weighted-average assumptions: Nine Months Ended September 30, 2023 2022 Grant date May 1, 2023 May 1, 2022 Performance period 3.00 years 3.00 years Stock price $ 51.25 $ 69.44 Triumph Financial stock price volatility 49.33 % 55.17 % Risk-free rate 3.76 % 2.84 % As of September 30, 2023, there was $6,665,000 of unrecognized compensation cost related to the nonvested Market Based PSUs. The cost is expected to be recognized over a remaining period of 2.33 years. Performance Based Performance Stock Units A summary of changes in the Company’s nonvested Performance Based Performance Stock Units (“Performance Based PSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2023 were as follows: Nonvested Performance Based PSUs Shares Weighted Average Nonvested at January 1, 2023 255,738 $ 39.57 Granted — — Incremental shares earned 107,404 N/A Vested (363,142) 40 Forfeited — — Nonvested at September 30, 2023 — $ — The Performance Based PSUs granted to employees under the Omnibus Incentive Plan vested after a three-year performance period. Under the terms of the award agreements, the number of shares issued upon vesting could range from 0% to 200% of the shares granted based on the Company’s cumulative diluted earnings per share over the performance period. The performance period for the outstanding Performance Based PSUs ended on December 31, 2022, and the awards subsequently vested at 142% of the target shares granted. Compensation expense for the Performance Based PSUs was estimated during the performance period based on the fair value of the stock at the grant date and the most probable outcome of the performance condition at each period end, adjusted for the passage of time within the vesting period of the awards. There was no stock based compensation cost related to Performance Based PSUs during the three and nine months ended September 30, 2023 and there is no remaining unrecognized compensation cost related to these awards. During the three and nine months ended September 30, 2022, the Company recognized $298,000 and $5,433,000, respectively, of stock based compensation cost related to Performance Based PSUs. Stock Options A summary of the changes in the Company’s stock options under the Omnibus Incentive Plan for the nine months ended September 30, 2023 were as follows: Stock Options Shares Weighted-Average Weighted-Average Aggregate Outstanding at January 1, 2023 195,398 $ 39.48 Granted 57,930 51.25 Exercised (6,023) 31.61 Forfeited or expired (3,195) 56.73 Outstanding at September 30, 2023 244,110 $ 42.24 6.29 $ 6,055 Fully vested shares and shares expected to vest at September 30, 2023 244,110 $ 42.24 6.29 $ 6,055 Shares exercisable at September 30, 2023 148,332 $ 32.81 4.59 $ 4,984 Information related to the stock options for the nine months ended September 30, 2023 and 2022 was as follows: Nine Months Ended September 30, (Dollars in thousands, except per share amounts) 2023 2022 Aggregate intrinsic value of options exercised $ 140 $ 280 Cash received from option exercises, net (52) (74) Tax benefit realized from option exercises 29 59 Weighted average fair value per share of options granted $ 25.20 $ 32.15 Stock options awarded to employees under the Omnibus Incentive Plan are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant, vest over four years, and have ten year contractual terms. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. Expected volatilities are determined based on the Company’s historical volatility. The expected term of the options granted is determined based on the SEC simplified method, which calculates the expected term as the mid-point between the weighted average time to vesting and the contractual term. The risk-free interest rate for the expected term of the options is derived from the Treasury constant maturity yield curve on the valuation date. The fair value of the stock options granted was determined using the following weighted-average assumptions: Nine Months Ended September 30, 2023 2022 Risk-free interest rate 3.38 % 2.77 % Expected term 6.25 years 6.25 years Expected stock price volatility 45.65 % 43.33 % Dividend yield — — As of September 30, 2023, there was $1,462,000 of unrecognized compensation cost related to nonvested stock options granted under the Omnibus Incentive Plan. The cost is expected to be recognized over a remaining period of 3.11 years. Employee Stock Purchase Plan |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The factors used in the earnings per share computation follow: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Basic Net income to common stockholders $ 11,993 $ 15,428 $ 29,050 $ 82,346 Weighted average common shares outstanding 23,162,614 24,227,020 23,220,331 24,483,054 Basic earnings per common share $ 0.52 $ 0.64 $ 1.25 $ 3.36 Diluted Net income to common stockholders $ 11,993 $ 15,428 $ 29,050 $ 82,346 Weighted average common shares outstanding 23,162,614 24,227,020 23,220,331 24,483,054 Dilutive effects of: Assumed exercises of stock options 82,909 85,239 77,286 95,252 Restricted stock awards 80,841 122,723 101,842 162,883 Restricted stock units 84,137 97,512 86,844 96,174 Performance stock units - market based 47,248 117,358 85,218 122,526 Performance stock units - performance based — 327,016 — 163,508 Employee stock purchase program 1,165 2,389 908 2,245 Average shares and dilutive potential common shares 23,458,914 24,979,257 23,572,429 25,125,642 Diluted earnings per common share $ 0.51 $ 0.62 $ 1.23 $ 3.28 Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options 101,138 52,878 104,114 52,878 Restricted stock awards — 6,348 — 6,348 Restricted stock units 11,250 15,000 11,250 15,000 Performance stock units - market based 14,424 45,296 14,424 45,296 Performance stock units - performance based — — — — Employee stock purchase program — — — — |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | REVENUE FROM CONTRACTS WITH CUSTOMERSThe Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The Company presents disaggregated revenue from contracts with customers in the consolidated statements of income. Descriptions of the Company's significant revenue-generating activities within the scope of Topic 606, which are included in non-interest income in the Company's consolidated statements of income, are as follows: • Service charges on deposits . Service charges on deposits primarily consists of fees from the Company's deposit customers for account maintenance, account analysis, and overdraft services. Account maintenance fees and analysis fees are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. • Card income. Card income primarily consists of interchange fees. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized when the transaction processing services are provided to the cardholder. • Net OREO gains (losses) and valuation adjustments. The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. • Fee income. Fee income for the Banking and Factoring segments primarily consists of transaction-based fees, including wire transfer fees, ACH and check fees, early termination fees, and other fees, earned from the Company's banking and factoring customers. Transaction based fees are recognized at the time the transaction is executed as that is the point in time the Company satisfies its performance obligations. Fee income for the Payments segment primarily consists of TriumphPay payment and audit fees. TriumphPay fees included in the Consolidated Statements of Income totaled $4,780,000 and $3,545,000 for the three months ended September 30, 2023 and 2022, respectively, and $12,570,000 and $10,156,000 for the nine months ended September 30, 2023 and 2022, respectively. These fees are generally transaction based and are recognized at the time the transaction is executed as that is the point in time that the Company satisfies its performance obligations. • Insurance commissions. Insurance commissions are earned for brokering insurance policies. The Company's primary performance obligations for insurance commissions are satisfied and revenue is recognized when the brokered insurance policies are executed. |
Business Segment Information
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, 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 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income | $ 12,794 | $ 7,650 | $ 11,010 | $ 16,229 | $ 44,192 | $ 24,329 | $ 31,454 | $ 84,750 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Edward J. Schreyer [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 23, 2023, Mr. Edward J. Schreyer, the Company’s Executive Vice President and Chief Operating Officer, adopted a written plan for the sale of our common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (the “Schreyer Trading Plan”). The Schreyer Trading Plan covers the sale of up to 25,282 shares of the Company’s common stock in several transactions over a period commencing after the later of (1) 90 days from the execution of the Schreyer Trading Plan and (2) the second trading day following the public disclosure of the Company’s financial results on Form 10-Q for the quarter ended September 30, 2023, and will cease upon the earlier of March 1, 2024 or the sale of all shares subject to the Schreyer Trading Plan. | |
Name | Edward J. Schreyer | |
Title | Executive Vice President and Chief Operating Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 23, 2023 | |
Arrangement Duration | 191 days | |
Aggregate Available | 25,282 | 25,282 |
Adam D. Nelson [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On September 6, 2023, Mr. Adam D. Nelson, the Company’s Executive Vice President and General Counsel, adopted a written plan for the exercise and sale of non-qualified stock options to purchase our common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (the “Nelson Trading Plan”). The Nelson Trading Plan covers the exercise and sale of up to 20,160 non-qualified stock options to purchase shares of the Company’s common stock in several transactions over a period commencing after the later of (1) 90 days from the execution of the Nelson Trading Plan and (2) the second trading day following the public disclosure of the Company’s financial results on Form 10-Q for the quarter ended September 30, 2023, and will cease upon the earlier of November 29, 2024 or the sale of all shares subject to the Nelson Trading Plan. | |
Name | Adam D. Nelson | |
Title | Executive Vice President and General Counsel | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | September 6, 2023 | |
Arrangement Duration | 450 days | |
Aggregate Available | 20,160 | 20,160 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary for a fair presentation. Transactions between the subsidiaries have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. |
Operating Segments | Operating Segments The Company’s reportable segments are comprised of strategic business units primarily based upon industry categories and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing. Segment determination also considers organizational structure and is consistent with the presentation of financial information to the chief operating decision maker to evaluate segment performance, develop strategy, and allocate resources. The Company's chief operating decision maker is the Chief Executive Officer of Triumph Financial, Inc. Management has determined that the Company has four reportable segments consisting of Banking, Factoring, Payments, and Corporate. 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 the TBK Bank's TriumphPay division, which is the payments network for presentment, audit, and payment of over-the-road trucking invoices. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of (i) invoices where we offer a carrier 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 us, (ii) offering freight brokers the ability to settle their invoices with us on an extended term following our payment to their carriers as an additional liquidity option for such freight brokers, and (iii) factoring transactions where we purchase receivables payable to such freight brokers from their shipper clients. The Corporate segment includes holding company financing and investment activities as well as management and administrative expenses that support the overall operations of the Company such as human resources, accounting, finance, risk management and information technology expense. For further discussion of management's operating segments and allocation methodology, see Note 16 – Business Segment Information. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, "Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings ("TDRs") in ASC 310-40, "Receivables - Troubled Debt Restructurings by Creditors" for entities that have adopted the current expected credit loss ("CECL") model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13"). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, "Financial Instruments—Credit Losses—Measured at Amortized Cost". |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Carrying Amount of Assets in Disposal Group and Gain on Sale | A summary of the carrying amount of the assets sold and the gain on sale is as follows: (Dollars in thousands) Equipment loans $ 191,167 Accrued interest receivable 1,587 Assets sold 192,754 Cash consideration 197,454 Return of premium liability (708) Total consideration 196,746 Transaction costs 73 Gain on sale, net of transaction costs $ 3,919 (Dollars in thousands) June 30, 2022 September 6, 2022 Total Factored receivables $ 67,888 $ 20,131 $ 88,019 Accrued interest and fee income — 17 17 Assets held for sale 67,888 20,148 88,036 Customer reserve noninterest bearing deposits 9,682 1,149 10,831 Liabilities held for sale 9,682 1,149 10,831 Net assets sold 58,206 18,999 77,205 Cash consideration 66,292 19,054 85,346 Revenue share asset 5,210 1,027 6,237 Total consideration 71,502 20,081 91,583 Transaction costs 82 49 131 Gain on sale, net of transaction costs $ 13,214 $ 1,033 $ 14,247 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Gross Realized and Unrealized Losses Recognized on Equity Securities | The gross realized and unrealized gains and losses recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Unrealized gains (losses) on equity securities held at the reporting date $ (137) $ (134) $ (137) $ (588) Realized gains (losses) on equity securities sold during the period — — 18 — $ (137) $ (134) $ (119) $ (588) The gross realized and unrealized gains (losses) recognized on equity securities without readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Unrealized gains (losses) on equity securities still held at the reporting date $ — $ — $ — $ 10,163 Realized gains (losses) on equity securities sold during the period — — — — $ — $ — $ — $ 10,163 |
Equity Securities without Readily Determinable Fair Value | The following table summarizes the Company's investments in equity securities without readily determinable fair values: (Dollars in thousands) September 30, 2023 December 31, 2022 Equity Securities without readily determinable fair value, at cost $ 55,812 $ 39,019 Upward adjustments based on observable price changes, cumulative 10,163 10,163 Equity Securities without readily determinable fair value, carrying value $ 65,975 $ 49,182 |
Schedule of Amortized Cost of Securities and Their Estimated Fair Values | The following table summarizes the amortized cost, fair value, and allowance for credit losses of debt securities and the corresponding amounts of gross unrealized gains and losses of available for sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities: (Dollars in thousands) Amortized Gross Gross Allowance Fair September 30, 2023 Available for sale securities: Mortgage-backed securities, residential $ 49,346 $ 9 $ (6,173) $ — $ 43,182 Asset-backed securities 1,243 10 — — 1,253 State and municipal 5,217 — (189) — 5,028 CLO securities 240,162 1,047 (734) — 240,475 Corporate bonds 768 — (19) — 749 SBA pooled securities 1,746 7 (116) — 1,637 Total available for sale securities $ 298,482 $ 1,073 $ (7,231) $ — $ 292,324 (Dollars in thousands) Amortized Gross Gross Fair September 30, 2023 Held to maturity securities: CLO securities $ 6,201 $ 339 $ (1,784) $ 4,756 Allowance for credit losses (2,890) Total held to maturity securities, net of ACL $ 3,311 (Dollars in thousands) Amortized Gross Gross Allowance for Credit Losses Fair December 31, 2022 Available for sale securities: Mortgage-backed securities, residential $ 55,329 $ 235 $ (4,931) $ — $ 50,633 Asset-backed securities 6,389 — (58) — 6,331 State and municipal 13,553 1 (116) — 13,438 CLO Securities 185,068 161 (4,218) — 181,011 Corporate bonds 1,270 1 (8) — 1,263 SBA pooled securities 1,910 29 (111) — 1,828 Total available for sale securities $ 263,519 $ 427 $ (9,442) $ — $ 254,504 (Dollars in thousands) Amortized Gross Gross Fair December 31, 2022 Held to maturity securities: CLO securities $ 6,521 $ 458 $ (1,503) $ 5,476 Allowance for credit losses (2,444) Total held to maturity securities, net of ACL $ 4,077 |
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of securities at September 30, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Securities Held to Maturity Securities (Dollars in thousands) Amortized Fair Amortized Fair Due in one year or less $ 1,167 $ 1,165 $ — $ — Due from one year to five years 2,212 2,122 1,913 2,085 Due from five years to ten years 72,866 72,665 4,288 2,671 Due after ten years 169,902 170,300 — — 246,147 246,252 6,201 4,756 Mortgage-backed securities, residential 49,346 43,182 — — Asset-backed securities 1,243 1,253 — — SBA pooled securities 1,746 1,637 — — $ 298,482 $ 292,324 $ 6,201 $ 4,756 |
Schedule of Proceeds from Sales of Debt Securities and the Associated Gross Gains and Losses as well as Net Gains and Losses from Calls of Debt Securities | Proceeds from sales of debt securities and the associated gross gains and losses as well as net gains and losses from calls of debt securities are as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Proceeds $ 10,005 $ — $ 14,005 $ 40,163 Gross gains 5 — 5 2,512 Gross losses — — — — Net gains and losses from calls of securities — — — 2 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position: Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2023 Available for sale securities: Mortgage-backed securities, residential $ 1,429 $ (100) $ 35,045 $ (6,073) $ 36,474 $ (6,173) Asset-backed securities — — — — — — State and municipal 1,537 (64) 2,986 (125) 4,523 (189) CLO securities 14,966 (34) 78,211 (700) 93,177 (734) Corporate bonds 749 (19) — — 749 (19) SBA pooled securities 220 (6) 1,111 (110) 1,331 (116) $ 18,901 $ (223) $ 117,353 $ (7,008) $ 136,254 $ (7,231) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 Available for sale securities: Mortgage-backed securities, residential $ 26,030 $ (1,507) $ 15,828 $ (3,424) $ 41,858 $ (4,931) Asset-backed securities 1,337 (52) 4,994 (6) 6,331 (58) State and municipal 12,680 (116) — — 12,680 (116) CLO Securities 151,572 (3,407) 19,439 (811) 171,011 (4,218) Corporate bonds 261 (8) — — 261 (8) SBA pooled securities 1,262 (111) — — 1,262 (111) $ 193,142 $ (5,201) $ 40,261 $ (4,241) $ 233,403 $ (9,442) |
Summary of Activity in Allowance for Credit Losses for Held To Maturity Debt Securities | The following table presents the activity in the allowance for credit losses for held to maturity debt securities: (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Held to Maturity CLO Securities 2023 2022 2023 2022 Allowance for credit losses: Beginning balance $ 2,876 $ 2,355 $ 2,444 $ 2,082 Credit loss expense 14 75 446 348 Allowance for credit losses ending balance $ 2,890 $ 2,430 $ 2,890 $ 2,430 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Held for Sale | The following table presents loans held for sale: (Dollars in thousands) September 30, 2023 December 31, 2022 Commercial 6,416 5,641 Total loans held for sale $ 6,416 $ 5,641 |
Schedule of Amortized Cost and Unpaid Principal | The following table presents the amortized cost and unpaid principal balance of loans held for investment: September 30, 2023 December 31, 2022 (Dollars in thousands) Amortized Unpaid Difference Amortized Unpaid Difference Commercial real estate $ 817,064 $ 818,140 $ (1,076) $ 678,144 $ 679,239 $ (1,095) Construction, land development, land 131,862 132,413 (551) 90,976 91,147 (171) 1-4 family residential 129,588 129,768 (180) 125,981 126,185 (204) Farmland 62,698 62,871 (173) 68,934 69,185 (251) Commercial 1,251,939 1,258,981 (7,042) 1,251,110 1,262,493 (11,383) Factored receivables 1,213,702 1,217,129 (3,427) 1,237,449 1,241,032 (3,583) Consumer 8,166 8,168 (2) 8,868 8,871 (3) Mortgage warehouse 756,509 756,509 — 658,829 658,829 — Total loans held for investment 4,371,528 $ 4,383,979 $ (12,451) 4,120,291 $ 4,136,981 $ (16,690) Allowance for credit losses (34,815) (42,807) $ 4,336,713 $ 4,077,484 |
Summary of Allowance for Loan and Lease Losses | The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows: (Dollars in thousands) Beginning Credit Loss Charge-offs Recoveries Ending Three months ended September 30, 2023 Commercial real estate $ 4,783 $ 1,008 $ (16) $ — $ 5,775 Construction, land development, land 1,235 (5) — 2 1,232 1-4 family residential 1,046 (8) — 1 1,039 Farmland 476 (42) — — 434 Commercial 12,977 (44) (213) 69 12,789 Factored receivables 13,441 389 (1,453) 247 12,624 Consumer 166 (157) (143) 300 166 Mortgage warehouse 846 (90) — — 756 $ 34,970 $ 1,051 $ (1,825) $ 619 $ 34,815 (Dollars in thousands) Beginning Credit Loss Charge-offs Recoveries Ending Three months ended September 30, 2022 Commercial real estate $ 5,167 $ (373) $ — $ — $ 4,794 Construction, land development, land 1,192 (198) — 1 995 1-4 family residential 757 (16) — 1 742 Farmland 490 (23) — — 467 Commercial 12,738 3,431 (208) 59 16,020 Factored receivables 22,212 183 (2,433) 172 20,134 Consumer 197 62 (106) 49 202 Mortgage warehouse 654 103 — — 757 $ 43,407 $ 3,169 $ (2,747) $ 282 $ 44,111 (Dollars in thousands) Beginning Credit Loss Charge-offs Recoveries Ending Nine Months Ended September 30, 2023 Commercial real estate $ 4,459 $ 1,262 $ (16) $ 70 $ 5,775 Construction, land development, land 1,155 73 — 4 1,232 1-4 family residential 838 195 (5) 11 1,039 Farmland 483 (49) — — 434 Commercial 15,918 2,271 (5,559) 159 12,789 Factored receivables 19,121 2,460 (9,566) 609 12,624 Consumer 175 (92) (414) 497 166 Mortgage warehouse 658 98 — — 756 $ 42,807 $ 6,218 $ (15,560) $ 1,350 $ 34,815 (Dollars in thousands) Beginning Credit Loss Charge-offs Recoveries Ending Nine months ended September 30, 2022 Commercial real estate $ 3,961 $ 881 $ (108) $ 60 $ 4,794 Construction, land development, land 827 165 — 3 995 1-4 family residential 468 268 — 6 742 Farmland 562 (95) — — 467 Commercial 14,485 2,417 (1,192) 310 16,020 Factored receivables 20,915 2,298 (3,853) 774 20,134 Consumer 226 180 (313) 109 202 Mortgage warehouse 769 (12) — — 757 $ 42,213 $ 6,102 $ (5,466) $ 1,262 $ 44,111 |
Individual And Collective Allowance For Credit Losses On Financing Receivables And Loan Balances | The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans: (Dollars in thousands) Real Estate Accounts Equipment Other Total ACL September 30, 2023 Commercial real estate $ 1,998 $ — $ 174 $ 1,703 $ 3,875 $ 327 Construction, land development, land — — — — — — 1-4 family residential 1,120 — — 26 1,146 126 Farmland 298 — — 930 1,228 — Commercial 939 — 2,929 20,315 24,183 2,080 Factored receivables — 39,404 — — 39,404 6,904 Consumer — — — 171 171 — Mortgage warehouse — — — — — — Total $ 4,355 $ 39,404 $ 3,103 $ 23,145 $ 70,007 $ 9,437 (Dollars in thousands) Real Estate Accounts Equipment Other Total ACL December 31, 2022 Commercial real estate $ 1,003 $ — $ — $ 140 $ 1,143 $ 283 Construction, land development, land 150 — — — 150 — 1-4 family residential 1,342 — — 49 1,391 108 Farmland 196 — 108 96 400 — Commercial 193 — 5,334 10,370 15,897 4,737 Factored receivables — 42,409 — — 42,409 13,042 Consumer — — — 91 91 — Mortgage warehouse — — — — — — Total $ 2,884 $ 42,409 $ 5,442 $ 10,746 $ 61,481 $ 18,170 |
Summary of Contractually Past Due and Nonaccrual Loans | The following tables present an aging of contractually past due loans: (Dollars in thousands) Past Due Past Due Past Due 90 Total Current Total Past Due 90 September 30, 2023 Commercial real estate $ 100 $ 306 $ 1,362 $ 1,768 $ 815,296 $ 817,064 $ — Construction, land development, land — — — — 131,862 131,862 — 1-4 family residential 540 306 245 1,091 128,497 129,588 — Farmland 147 — — 147 62,551 62,698 — Commercial 16,445 2,173 3,650 22,268 1,229,671 1,251,939 — Factored receivables 26,772 6,234 26,346 59,352 1,154,350 1,213,702 26,346 Consumer 17 19 20 56 8,110 8,166 — Mortgage warehouse — — — — 756,509 756,509 — Total $ 44,021 $ 9,038 $ 31,623 $ 84,682 $ 4,286,846 $ 4,371,528 $ 26,346 (Dollars in thousands) Past Due Past Due Past Due 90 Total Current Total Past Due 90 December 31, 2022 Commercial real estate $ 1,301 $ — $ 455 $ 1,756 $ 676,388 $ 678,144 $ — Construction, land development, land — — 145 145 90,831 90,976 — 1-4 family residential 936 531 776 2,243 123,738 125,981 — Farmland — — — — 68,934 68,934 — Commercial 1,630 3,139 2,847 7,616 1,243,494 1,251,110 — Factored receivables 42,797 12,651 37,142 92,590 1,144,859 1,237,449 37,142 Consumer 52 41 2 95 8,773 8,868 — Mortgage warehouse — — — — 658,829 658,829 — Total $ 46,716 $ 16,362 $ 41,367 $ 104,445 $ 4,015,846 $ 4,120,291 $ 37,142 |
Summary of Amortized Cost Basis of Loans on Nonaccrual Status | The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses: September 30, 2023 December 31, 2022 (Dollars in thousands) Total Nonaccrual Nonaccrual Total Nonaccrual Nonaccrual Commercial real estate $ 3,801 $ 2,099 $ 871 $ 319 Construction, land development, land — — 150 150 1-4 family residential 1,146 958 1,391 1,238 Farmland 1,228 1,228 400 400 Commercial 24,182 20,671 15,393 3,662 Factored receivables — — — — Consumer 171 171 91 91 Mortgage warehouse — — — — $ 30,528 $ 25,127 $ 18,296 $ 5,860 |
Schedule of Accrued Interest on Non Accrual Loans Reversed Through Interest Income | The following table presents accrued interest on nonaccrual loans reversed through interest income: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Commercial real estate $ 1 $ — $ 17 $ — Construction, land development, land — — — 2 1-4 family residential 2 1 8 1 Farmland 35 — 57 — Commercial 47 — 55 4 Factored receivables — — — — Consumer 1 — 2 — Mortgage warehouse — — — — $ 86 $ 1 $ 139 $ 7 |
Schedule of Nonperforming Loans | The following table presents information regarding nonperforming loans: (Dollars in thousands) September 30, 2023 December 31, 2022 Nonaccrual loans $ 30,528 $ 18,296 Factored receivables greater than 90 days past due 22,765 28,940 Other nonperforming factored receivables (1) — 491 Troubled debt restructurings accruing interest — 503 $ 53,293 $ 48,230 (1) Other nonperforming factored receivables represent the portion of the Over-Formula Advance Portfolio that is not covered by Covenant's indemnification as well as other nonperforming factored receivables less than 90 days past due. This amount is also considered Classified from a risk rating perspective. |
Summary of Risk Category of Loans | As of September 30, 2023 and December 31, 2022, based on the most recent analysis performed, the risk category of loans is as follows: Revolving Revolving Total (Dollars in thousands) Year of Origination September 30, 2023 2023 2022 2021 2020 2019 Prior Commercial real estate Pass $ 140,428 $ 189,753 $ 122,245 $ 55,488 $ 24,826 $ 106,522 $ 87,141 $ 122 $ 726,525 Classified — 38,008 3,100 46,587 747 2,097 — — 90,539 Total commercial real estate $ 140,428 $ 227,761 $ 125,345 $ 102,075 $ 25,573 $ 108,619 $ 87,141 $ 122 $ 817,064 YTD gross charge-offs $ — $ — $ — $ — $ 16 $ — $ — $ — $ 16 Construction, land development, land Pass $ 35,355 $ 50,828 $ 30,928 $ 5,798 $ 349 $ 6,007 $ 2,597 $ — $ 131,862 Classified — — — — — — — — — Total construction, land development, land $ 35,355 $ 50,828 $ 30,928 $ 5,798 $ 349 $ 6,007 $ 2,597 $ — $ 131,862 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 1-4 family residential Pass $ 7,705 $ 10,460 $ 6,003 $ 10,253 $ 4,441 $ 50,464 $ 37,909 $ 1,173 $ 128,408 Classified 167 16 15 175 72 608 127 — 1,180 Total 1-4 family residential $ 7,872 $ 10,476 $ 6,018 $ 10,428 $ 4,513 $ 51,072 $ 38,036 $ 1,173 $ 129,588 YTD gross charge-offs $ 5 $ — $ — $ — $ — $ — $ — $ — $ 5 Farmland Pass $ 16,003 $ 13,463 $ 5,658 $ 7,913 $ 4,582 $ 11,085 $ 1,778 $ 73 $ 60,555 Classified 190 — 19 — — 1,934 — — 2,143 Total farmland $ 16,193 $ 13,463 $ 5,677 $ 7,913 $ 4,582 $ 13,019 $ 1,778 $ 73 $ 62,698 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 138,634 $ 306,209 $ 110,662 $ 95,731 $ 33,386 $ 23,715 $ 507,606 $ 1,253 $ 1,217,196 Classified 127 18,341 4,958 9,340 649 641 687 — 34,743 Total commercial $ 138,761 $ 324,550 $ 115,620 $ 105,071 $ 34,035 $ 24,356 $ 508,293 $ 1,253 $ 1,251,939 YTD gross charge-offs $ 2 $ 516 $ 4,496 $ 368 $ 9 $ 133 $ 35 $ — $ 5,559 Factored receivables Pass $ 1,175,928 $ — $ — $ 3,581 $ — $ — $ — $ — $ 1,179,509 Classified 14,832 — — 19,361 — — — — 34,193 Total factored receivables $ 1,190,760 $ — $ — $ 22,942 $ — $ — $ — $ — $ 1,213,702 YTD gross charge-offs $ 3,943 $ 2,293 $ — $ 3,330 $ — $ — $ — $ — $ 9,566 Consumer Pass $ 2,226 $ 2,273 $ 877 $ 577 $ 135 $ 1,862 $ 46 $ — $ 7,996 Classified — — 87 — — 83 — — 170 Total consumer $ 2,226 $ 2,273 $ 964 $ 577 $ 135 $ 1,945 $ 46 $ — $ 8,166 YTD gross charge-offs $ 374 $ 9 $ 16 $ 8 $ 2 $ 5 $ — $ — $ 414 Mortgage warehouse Pass $ 756,509 $ — $ — $ — $ — $ — $ — $ — $ 756,509 Classified — — — — — — — — — Total mortgage warehouse $ 756,509 $ — $ — $ — $ — $ — $ — $ — $ 756,509 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans Pass $ 2,272,788 $ 572,986 $ 276,373 $ 179,341 $ 67,719 $ 199,655 $ 637,077 $ 2,621 $ 4,208,560 Classified 15,316 56,365 8,179 75,463 1,468 5,363 814 — 162,968 Total loans $ 2,288,104 $ 629,351 $ 284,552 $ 254,804 $ 69,187 $ 205,018 $ 637,891 $ 2,621 $ 4,371,528 YTD gross charge-offs $ 4,324 $ 2,818 $ 4,512 $ 3,706 $ 27 $ 138 $ 35 $ — $ 15,560 Revolving Revolving Total (Dollars in thousands) Year of Origination December 31, 2022 2022 2021 2020 2019 2018 Prior Commercial real estate Pass $ 231,427 $ 156,895 $ 198,541 $ 28,033 $ 17,786 $ 35,658 $ 3,675 $ — $ 672,015 Classified 3,668 551 1,855 39 — 16 — — 6,129 Total commercial real estate $ 235,095 $ 157,446 $ 200,396 $ 28,072 $ 17,786 $ 35,674 $ 3,675 $ — $ 678,144 Construction, land development, land Pass $ 71,236 $ 11,328 $ 4,535 $ 3,186 $ 35 $ 506 $ — $ — $ 90,826 Classified — — 5 — — 145 — — 150 Total construction, land development, land $ 71,236 $ 11,328 $ 4,540 $ 3,186 $ 35 $ 651 $ — $ — $ 90,976 1-4 family residential Pass $ 26,306 $ 22,639 $ 9,536 $ 2,929 $ 3,528 $ 20,910 $ 38,361 $ 300 $ 124,509 Classified 137 199 7 53 1 1,006 69 — 1,472 Total 1-4 family residential $ 26,443 $ 22,838 $ 9,543 $ 2,982 $ 3,529 $ 21,916 $ 38,430 $ 300 $ 125,981 Farmland Pass $ 18,190 $ 7,291 $ 10,027 $ 2,699 $ 6,742 $ 18,569 $ 1,016 $ 204 $ 64,738 Classified 1,062 2,796 120 108 — 110 — — 4,196 Total farmland $ 19,252 $ 10,087 $ 10,147 $ 2,807 $ 6,742 $ 18,679 $ 1,016 $ 204 $ 68,934 Commercial Pass $ 358,983 $ 181,933 $ 136,635 $ 41,912 $ 5,842 $ 12,145 $ 486,889 $ 161 $ 1,224,500 Classified 10,721 10,579 3,767 1,038 96 116 293 — 26,610 Total commercial $ 369,704 $ 192,512 $ 140,402 $ 42,950 $ 5,938 $ 12,261 $ 487,182 $ 161 $ 1,251,110 Factored receivables Pass $ 1,196,912 $ — $ 7,710 $ — $ — $ — $ — $ — $ 1,204,622 Classified 12,974 — 19,853 — — — — — 32,827 Total factored receivables $ 1,209,886 $ — $ 27,563 $ — $ — $ — $ — $ — $ 1,237,449 Consumer Pass $ 2,768 $ 1,981 $ 894 $ 304 $ 266 $ 2,418 $ 147 $ — $ 8,778 Classified — 1 2 — 8 79 — — 90 Total consumer $ 2,768 $ 1,982 $ 896 $ 304 $ 274 $ 2,497 $ 147 $ — $ 8,868 Mortgage warehouse Pass $ 658,829 $ — $ — $ — $ — $ — $ — $ — $ 658,829 Classified — — — — — — — — — Total mortgage warehouse $ 658,829 $ — $ — $ — $ — $ — $ — $ — $ 658,829 Total loans Pass $ 2,564,651 $ 382,067 $ 367,878 $ 79,063 $ 34,199 $ 90,206 $ 530,088 $ 665 $ 4,048,817 Classified 28,562 14,126 25,609 1,238 105 1,472 362 — 71,474 Total loans $ 2,593,213 $ 396,193 $ 393,487 $ 80,301 $ 34,304 $ 91,678 $ 530,450 $ 665 $ 4,120,291 |
Summary of Loan Modifications | The following tables present the amortized cost basis at the end of the reporting period of the loans modifications to borrowers experiencing financial difficulty: Term Extension Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Amortized Cost % of Portfolio Commercial real estate $ 111 — % $ 111 — % 1-4 family residential 271 0.2 % 271 0.2 % Farmland 762 1.2 % 762 1.2 % Commercial 1,913 0.2 % 1,913 0.2 % $ 3,057 0.1 % $ 3,057 0.1 % Term Extension and Rate Reduction Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Amortized Cost % of Portfolio Commercial real estate $ 83,344 10.2 % $ 83,344 10.2 % Commercial 549 — % 549 — % $ 83,893 1.9 % $ 83,893 1.9 % The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty: Term Extension Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Commercial real estate Modification added a weighted average 0.3 years to the life of the modified loans. Modification added a weighted average 0.9 years to the life of the modified loans. 1-4 family residential Modification added a weighted average 0.5 years to the life of the modified loans. Modification added a weighted average 0.5 years to the life of the modified loans. Farmland Modification added a weighted average 0.5 years to the life of the modified loans. Modification added a weighted average 0.5 years to the life of the modified loans. Commercial Modification added a weighted average 0.5 years to the life of the modified loans. Modification added a weighted average 0.6 years to the life of the modified loans. Term Extension and rate Reduction Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Commercial real estate Modification added a weighted average 0.5 years to the life of the modified loans and reduced the weighted average contractual interest rate from 10.1% to 5.1%. Modification added a weighted average 0.5 years to the life of the modified loans and reduced the weighted average contractual interest rate from 10.1% to 5.1%. Commercial Modification added a weighted average 0.3 years to the life of the modified loans and reduced the weighted average contractual interest rate from 9.5% to 8.6%. Modification added a weighted average 0.3 years to the life of the modified loans and reduced the weighted average contractual interest rate from 9.5% to 8.6%. The following table presents the payment status of loans that have been modified in the last twelve months: September 30, 2023 (Dollars in thousands) Current Past Due Past Due Commercial real estate $ 83,455 $ — $ — 1-4 family residential 271 — — Farmland 762 — — Commercial 2,462 — — $ 86,950 $ — $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Goodwill and intangible assets consist of the following: (Dollars in thousands) September 30, 2023 December 31, 2022 Goodwill $ 233,709 $ 233,709 September 30, 2023 December 31, 2022 (Dollars in thousands) Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Core deposit intangibles $ 43,578 $ (37,490) $ 6,088 $ 43,578 $ (35,347) $ 8,231 Software intangible assets 16,932 (9,877) 7,055 16,932 (6,702) 10,230 Other intangible assets 33,452 (20,195) 13,257 30,410 (16,813) 13,597 $ 93,962 $ (67,562) $ 26,400 $ 90,920 $ (58,862) $ 32,058 |
Schedule of Changes in Goodwill and Intangible Assets | The changes in goodwill and intangible assets during the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 262,958 $ 270,666 $ 265,767 $ 276,856 Acquired intangible assets — 851 3,042 851 Acquired goodwill - measurement period adjustment — — — (18) Goodwill transferred to assets held for sale — — — (3,217) Intangible assets transferred to assets held for sale — — — (1,394) Goodwill transferred from assets held for sale — — — 3,217 Intangible assets transferred from assets held for sale — — — 1,394 Amortization of intangibles (2,849) (2,913) (8,700) (9,085) Ending balance $ 260,109 $ 268,604 $ 260,109 $ 268,604 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Pre-Tax Impact of Terminated Cash Flow Hedge on AOCI | The following table presents the pre-tax impact of the terminated cash flow hedge on AOCI: Nine Months Ended (Dollars in thousands) September 30, 2022 Unrealized gains on terminated hedges Beginning Balance $ — Unrealized gains arising during the period 9,316 Reclassification adjustments for amortization of unrealized (gains) into net income (9,316) Ending Balance $ — |
Schedule of Pre-Tax Impact of Terminated Cash Flow Hedge on AOCI | The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income, net of tax: Amount of Amount of Location of Amount of Amount of (Dollars in thousands) Nine Months Ended September 30, 2022 Derivatives in cash flow hedging relationships: Interest rate swaps $ 2,398 $ 2,398 Interest Expense $ 7,103 $ 7,103 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The Company holds investments in the subordinated notes of the following closed Collateralized Loan Obligation (“CLO”) funds: (Dollars in thousands) Offering Offering Trinitas CLO IV, LTD (Trinitas IV) June 2, 2016 $ 406,650 Trinitas CLO V, LTD (Trinitas V) September 22, 2016 $ 409,000 Trinitas CLO VI, LTD (Trinitas VI) June 20, 2017 $ 717,100 |
Off-Balance Sheet Loan Commit_2
Off-Balance Sheet Loan Commitments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Financial Instruments with Off-Balance Sheet Risk | The contractual amounts of financial instruments with off-balance sheet risk were as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Unused lines of credit $ 15,441 $ 563,103 $ 578,544 $ 1,417 $ 487,965 $ 489,382 Standby letters of credit $ 15,725 $ 9,809 $ 25,534 $ 12,309 $ 4,897 $ 17,206 Commitments to purchase loans $ — $ 17,321 $ 17,321 $ — $ 53,572 $ 53,572 Mortgage warehouse commitments $ — $ 851,564 $ 851,564 $ — $ 1,055,117 $ 1,055,117 |
Credit Loss Expense for Off Balance Sheet Credit Exposures | The following table presents credit loss expense for off balance sheet credit exposures: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Credit loss expense (benefit) $ (253) $ (598) $ (596) $ (402) |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized in the table below. (Dollars in thousands) Fair Value Measurements Using Total September 30, 2023 Level 1 Level 2 Level 3 Assets measured at fair value on a recurring basis Securities available for sale Mortgage-backed securities, residential $ — $ 43,182 $ — $ 43,182 Asset-backed securities — 1,253 — 1,253 State and municipal — 5,028 — 5,028 CLO securities — 240,475 — 240,475 Corporate bonds — 749 — 749 SBA pooled securities — 1,637 — 1,637 $ — $ 292,324 $ — $ 292,324 Equity securities with readily determinable fair values Mutual fund $ 4,289 $ — $ — $ 4,289 Loans held for sale $ — $ 6,416 $ — $ 6,416 Indemnification asset $ — $ — $ 1,701 $ 1,701 Revenue share asset $ — $ — $ 2,696 $ 2,696 Liabilities measured at fair value on a recurring basis Return of premium liability $ — $ — $ 272 $ 272 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2022 Level 1 Level 2 Level 3 Assets measured at fair value on a recurring basis Securities available for sale Mortgage-backed securities, residential $ — $ 50,633 $ — $ 50,633 Asset-backed securities — 6,331 — 6,331 State and municipal — 13,438 — 13,438 CLO Securities — 181,011 — 181,011 Corporate bonds — 1,263 — 1,263 SBA pooled securities — 1,828 — 1,828 $ — $ 254,504 $ — $ 254,504 Equity securities with readily determinable fair values Mutual fund $ 5,191 $ — $ — $ 5,191 Loans held for sale $ — $ 5,641 $ — $ 5,641 Indemnification asset $ — $ — $ 3,896 $ 3,896 Revenue share asset $ — $ — $ 5,515 $ 5,515 Liabilities measured at fair value on a recurring basis Return of premium liability $ — $ — $ 575 $ 575 |
Reconciliation of Opening Balance to Closing Balance of Fair Value of Contingent Consideration, Assets | A reconciliation of the opening balance to the closing balance of the fair value of the indemnification asset is as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 1,905 $ 4,377 $ 3,896 $ 4,786 Indemnification asset recognized in business combination — — — — Change in fair value of indemnification asset recognized in earnings (204) (204) (530) (613) Indemnification reduction — — (1,665) — Ending balance $ 1,701 $ 4,173 $ 1,701 $ 4,173 Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 3,053 $ 5,210 $ 5,515 $ — Revenue share asset recognized — 1,027 — 6,237 Change in fair value of revenue share asset recognized in earnings (78) 171 (1,867) 171 Revenue share payments received (279) (230) (952) (230) Ending balance $ 2,696 $ 6,178 $ 2,696 $ 6,178 |
Reconciliation of Opening Balance to Closing Balance of Fair Value of Contingent Consideration, Liabilities | A reconciliation of the opening balance to the closing balance of the fair value of the return of premium liability is as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 376 $ 708 $ 575 $ — Return of premium liability recognized — — — 708 Change in fair value of return of premium liability recognized in earnings (104) (104) (303) (104) Return of premium payments made — (34) — (34) Ending balance $ 272 $ 570 $ 272 $ 570 |
Fair Value of Assets Measured on Non-recurring Basis | Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at September 30, 2023 and December 31, 2022. (Dollars in thousands) Fair Value Measurements Using Total September 30, 2023 Level 1 Level 2 Level 3 Collateral dependent loans Commercial real estate $ — $ — $ 1,374 $ 1,374 1-4 family residential — — 63 63 Commercial — — 1,431 1,431 Factored receivables — — 32,500 32,500 $ — $ — $ 35,368 $ 35,368 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2022 Level 1 Level 2 Level 3 Collateral dependent loans Commercial real estate $ — $ — $ 269 $ 269 1-4 family residential — — 46 46 Commercial — — 6,994 6,994 Factored receivables — — 29,367 29,367 Equity investment without readily determinable fair value 38,088 — — 38,088 $ 38,088 $ — $ 36,676 $ 74,764 |
Estimated Fair Value of Company's Financial Assets and Financial Liabilities | The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at September 30, 2023 and December 31, 2022 were as follows: (Dollars in thousands) Carrying Fair Value Measurements Using Total September 30, 2023 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 337,583 $ 337,583 $ — $ — $ 337,583 Securities - held to maturity 3,311 — — 4,756 4,756 Loans not previously presented, gross 4,336,160 129,815 — 4,111,712 4,241,527 FHLB and other restricted stock 10,101 N/A N/A N/A N/A Accrued interest receivable 33,930 33,930 — — 33,930 Financial liabilities: Deposits 4,487,051 — 4,478,382 — 4,478,382 Federal Home Loan Bank advances 30,000 — 30,000 — 30,000 Subordinated notes 108,454 — 88,057 — 88,057 Junior subordinated debentures 41,592 — 43,392 — 43,392 Accrued interest payable 8,382 8,382 — — 8,382 (Dollars in thousands) Carrying Fair Value Measurements Using Total December 31, 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 408,182 $ 408,182 $ — $ — $ 408,182 Securities - held to maturity 4,077 — — 5,476 5,476 Loans not previously presented, gross 4,088,411 187,729 — 3,805,701 3,993,430 FHLB and other restricted stock 6,252 N/A N/A N/A N/A Accrued interest receivable 21,977 21,977 — — 21,977 Financial liabilities: Deposits 4,171,336 — 4,159,695 — 4,159,695 Customer repurchase agreements 340 — 340 — 340 Federal Home Loan Bank advances 30,000 — 30,000 — 30,000 Subordinated notes 107,800 — 104,400 — 104,400 Junior subordinated debentures 41,158 — 42,721 — 42,721 Accrued interest payable 2,830 2,830 — — 2,830 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The actual capital amounts and ratios for the Company and TBK Bank are presented in the following table. (Dollars in thousands) Actual Minimum for Capital To Be Well September 30, 2023 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk weighted assets) Triumph Financial, Inc. $ 790,082 15.8% $ 400,042 8.0% N/A N/A TBK Bank, SSB $ 746,239 15.0% $ 397,994 8.0% $ 497,493 10.0% Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $ 646,435 12.9% $ 300,667 6.0% N/A N/A TBK Bank, SSB $ 713,628 14.4% $ 297,345 6.0% $ 396,460 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $ 559,843 11.2% $ 224,937 4.5% N/A N/A TBK Bank, SSB $ 713,628 14.4% $ 223,009 4.5% $ 322,124 6.5% Tier 1 capital (to average assets) Triumph Financial, Inc. $ 646,435 12.4% $ 208,527 4.0% N/A N/A TBK Bank, SSB $ 713,628 13.7% $ 208,359 4.0% $ 260,448 5.0% As of December 31, 2022 Total capital (to risk weighted assets) Triumph Financial, Inc. $ 829,928 17.7% $ 375,109 8.0% N/A N/A TBK Bank, SSB $ 732,785 15.8% $ 371,030 8.0% $ 463,788 10.0% Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $ 684,381 14.6% $ 281,252 6.0% N/A N/A TBK Bank, SSB $ 697,022 15.0% $ 278,809 6.0% $ 371,745 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $ 598,223 12.7% $ 211,969 4.5% N/A N/A TBK Bank, SSB $ 697,022 15.0% $ 209,107 4.5% $ 302,043 6.5% Tier 1 capital (to average assets) Triumph Financial, Inc. $ 684,381 13.0% $ 210,579 4.0% N/A N/A TBK Bank, SSB $ 697,022 13.2% $ 211,219 4.0% $ 264,023 5.0% |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Summary of Capital Structure | The following summarizes the capital structure of Triumph Financial, Inc. Preferred Stock Series C (Dollars in thousands, except per share amounts) September 30, 2023 December 31, 2022 Shares authorized 51,750 51,750 Shares issued 45,000 45,000 Shares outstanding 45,000 45,000 Par value per share $ 0.01 $ 0.01 Liquidation preference per share $ 1,000 $ 1,000 Liquidation preference amount $ 45,000 $ 45,000 Dividend rate 7.125 % 7.125 % Dividend payment dates Quarterly Quarterly Common Stock September 30, 2023 December 31, 2022 Shares authorized 50,000,000 50,000,000 Shares issued 28,975,206 28,321,716 Treasury shares (5,683,513) (4,268,131) Shares outstanding 23,291,693 24,053,585 Par value per share $ 0.01 $ 0.01 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Changes in Company's Nonvested Restricted Stock Awards | A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2023 were as follows: Nonvested RSAs Shares Weighted-Average Nonvested at January 1, 2023 230,486 70.34 Granted 13,374 59.69 Vested (107,623) 60.34 Forfeited (12,978) 75.48 Nonvested at September 30, 2023 123,259 77.07 |
Summary of Changes in Company's Nonvested Restricted Stock Units | A summary of changes in the Company’s nonvested Restricted Stock Units (“RSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2023 were as follows: Nonvested RSUs Shares Weighted-Average Nonvested at January 1, 2023 211,300 59.45 Granted 139,836 52.59 Vested (114,509) 43.19 Forfeited (5,112) 63.87 Nonvested at September 30, 2023 231,515 63.25 |
Summary of Changes in Company's Nonvested Performance Stock Units | A summary of changes in the Company’s nonvested Market Based Performance Stock Units (“Market Based PSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2023 were as follows: Nonvested Market Based PSUs Shares Weighted-Average Nonvested at January 1, 2023 112,486 $ 55.57 Granted 78,872 78.15 Incremental shares earned 52,694 N/A Vested (122,969) 36.10 Forfeited (3,537) 78.45 Nonvested at September 30, 2023 117,546 $ 87.55 A summary of changes in the Company’s nonvested Performance Based Performance Stock Units (“Performance Based PSUs”) under the Omnibus Incentive Plan for the nine months ended September 30, 2023 were as follows: Nonvested Performance Based PSUs Shares Weighted Average Nonvested at January 1, 2023 255,738 $ 39.57 Granted — — Incremental shares earned 107,404 N/A Vested (363,142) 40 Forfeited — — Nonvested at September 30, 2023 — $ — |
Fair Value of Stock Market Based PSUs Granted, Weighted-Average Assumptions | The fair value of the Market Based PSUs granted was determined using the following weighted-average assumptions: Nine Months Ended September 30, 2023 2022 Grant date May 1, 2023 May 1, 2022 Performance period 3.00 years 3.00 years Stock price $ 51.25 $ 69.44 Triumph Financial stock price volatility 49.33 % 55.17 % Risk-free rate 3.76 % 2.84 % |
Summary of Changes in Company's Stock Options | A summary of the changes in the Company’s stock options under the Omnibus Incentive Plan for the nine months ended September 30, 2023 were as follows: Stock Options Shares Weighted-Average Weighted-Average Aggregate Outstanding at January 1, 2023 195,398 $ 39.48 Granted 57,930 51.25 Exercised (6,023) 31.61 Forfeited or expired (3,195) 56.73 Outstanding at September 30, 2023 244,110 $ 42.24 6.29 $ 6,055 Fully vested shares and shares expected to vest at September 30, 2023 244,110 $ 42.24 6.29 $ 6,055 Shares exercisable at September 30, 2023 148,332 $ 32.81 4.59 $ 4,984 |
Schedule of Information Related to Stock Options | Information related to the stock options for the nine months ended September 30, 2023 and 2022 was as follows: Nine Months Ended September 30, (Dollars in thousands, except per share amounts) 2023 2022 Aggregate intrinsic value of options exercised $ 140 $ 280 Cash received from option exercises, net (52) (74) Tax benefit realized from option exercises 29 59 Weighted average fair value per share of options granted $ 25.20 $ 32.15 |
Fair Value of Stock Options Granted, Weighted-Average Assumptions | The fair value of the stock options granted was determined using the following weighted-average assumptions: Nine Months Ended September 30, 2023 2022 Risk-free interest rate 3.38 % 2.77 % Expected term 6.25 years 6.25 years Expected stock price volatility 45.65 % 43.33 % Dividend yield — — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Factors Used in Computation of Earnings Per Share | The factors used in the earnings per share computation follow: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Basic Net income to common stockholders $ 11,993 $ 15,428 $ 29,050 $ 82,346 Weighted average common shares outstanding 23,162,614 24,227,020 23,220,331 24,483,054 Basic earnings per common share $ 0.52 $ 0.64 $ 1.25 $ 3.36 Diluted Net income to common stockholders $ 11,993 $ 15,428 $ 29,050 $ 82,346 Weighted average common shares outstanding 23,162,614 24,227,020 23,220,331 24,483,054 Dilutive effects of: Assumed exercises of stock options 82,909 85,239 77,286 95,252 Restricted stock awards 80,841 122,723 101,842 162,883 Restricted stock units 84,137 97,512 86,844 96,174 Performance stock units - market based 47,248 117,358 85,218 122,526 Performance stock units - performance based — 327,016 — 163,508 Employee stock purchase program 1,165 2,389 908 2,245 Average shares and dilutive potential common shares 23,458,914 24,979,257 23,572,429 25,125,642 Diluted earnings per common share $ 0.51 $ 0.62 $ 1.23 $ 3.28 |
Schedule of Shares not Considered in Computing Diluted Earnings per Common Share | Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options 101,138 52,878 104,114 52,878 Restricted stock awards — 6,348 — 6,348 Restricted stock units 11,250 15,000 11,250 15,000 Performance stock units - market based 14,424 45,296 14,424 45,296 Performance stock units - performance based — — — — Employee stock purchase program — — — — |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | (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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 4 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Summary of Assets and Liabilities in Disposal Group, Equipment Loan Sale (Details) - Equipment Loans Disposal Group - Disposal Group, Disposed of by Sale, Not Discontinued Operations $ in Thousands | Jun. 23, 2022 USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Equipment loans | $ 191,167 |
Accrued interest receivable | 1,587 |
Assets sold | 192,754 |
Cash consideration | 197,454 |
Return of premium liability | (708) |
Total consideration | 196,746 |
Transaction costs | 73 |
Gain on sale, net of transaction costs | $ 3,919 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Narrative (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 06, 2022 | Jun. 30, 2022 | Jun. 23, 2022 |
Equipment Loans Disposal Group | ||||
Business Acquisition [Line Items] | ||||
Return of premium liability | $ 708 | |||
Factored Receivable Disposal Group | ||||
Business Acquisition [Line Items] | ||||
Revenue share asset | $ 6,237 | $ 1,027 | $ 5,210 | |
Factored Receivable Disposal Group | Factored receivables | ||||
Business Acquisition [Line Items] | ||||
Revenue share asset, percent of expected cash payments to be received | 15% | |||
Factored Receivable Disposal Group | Factored receivables | Minimum | ||||
Business Acquisition [Line Items] | ||||
Revenue share asset, percent of expected cash payments to be received | 15% | |||
Factored Receivable Disposal Group | Factored receivables | Maximum | ||||
Business Acquisition [Line Items] | ||||
Revenue share asset, percent of expected cash payments to be received | 20% |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Summary of Assets and Liabilities in Disposal Group, Factored Receivables (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Factored Receivable Disposal Group - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 06, 2022 | Jun. 30, 2022 |
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||
Assets sold | $ 88,036 | $ 20,148 | $ 67,888 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |||
Customer reserve noninterest bearing deposits | 10,831 | 1,149 | 9,682 |
Liabilities held for sale | 10,831 | 1,149 | 9,682 |
Net assets sold | 77,205 | 18,999 | 58,206 |
Cash consideration | 85,346 | 19,054 | 66,292 |
Revenue share asset | 6,237 | 1,027 | 5,210 |
Total consideration | 91,583 | 20,081 | 71,502 |
Transaction costs | 131 | 49 | 82 |
Gain on sale, net of transaction costs | 14,247 | 1,033 | 13,214 |
Factored receivables | |||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||
Factored receivables | 88,019 | 20,131 | 67,888 |
Accrued interest and fee income | $ 17 | $ 17 | $ 0 |
Securities - Narrative (Details
Securities - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 10, 2022 USD ($) agreement | Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) security investment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) investment | Mar. 31, 2022 USD ($) | Oct. 17, 2019 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||||||
Securities - equity investments with readily determinable fair values | $ 4,289 | $ 4,289 | $ 5,191 | ||||||
Equity Securities without readily determinable fair value, carrying value | 65,975 | 65,975 | 49,182 | ||||||
Equity securities without readily determinable fair value, upward price adjustment, annual amount | 0 | $ 0 | 0 | $ 10,163 | |||||
Accrued interest | 5,036 | 5,036 | $ 2,593 | ||||||
Debt securities, available-for-sale, accrued interest writeoff | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Number of securities in an unrealized loss position | security | 116 | 116 | |||||||
Number of investments | investment | 3 | 3 | |||||||
Held-to-maturity securities classified as nonaccrual | $ 4,772 | $ 4,772 | |||||||
Asset Pledged as Collateral | |||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||
Debt securities | 41,520 | 41,520 | $ 93,813 | ||||||
Trax | |||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||
Equity Securities without readily determinable fair value, carrying value | $ 9,700 | ||||||||
WSI | |||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||
Equity Securities without readily determinable fair value, carrying value | 38,088 | 38,088 | 38,088 | ||||||
Equity method investments and warrants | $ 8,000 | ||||||||
Equity method investment, ownership percentage | 8% | ||||||||
Equity method investment, ownership percentage to be purchased through exercise of warrant | 10% | ||||||||
Number of agreements with affiliate | agreement | 2 | ||||||||
Equity method investment, loss on impairment of warrants | $ 3,224 | ||||||||
Equity securities without readily determinable fair value, percentage of common stock agreed to purchase | 10% | ||||||||
Payment to acquire interest in common stock | $ 23,000 | ||||||||
Equity securities without readily determinable fair value, percentage of ownership after transaction | 18% | ||||||||
Equity method investments, fair value disclosure | $ 4,925 | ||||||||
Equity securities without readily determinable fair value, discontinuation of equity method, amount after adjustment | $ 15,088 | ||||||||
Equity securities without readily determinable fair value, upward price adjustment, annual amount | $ 10,163 | ||||||||
Mutual fund | |||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||
Securities - equity investments with readily determinable fair values | $ 4,289 | $ 4,289 | $ 5,191 |
Securities - Schedule of Gross
Securities - Schedule of Gross Realized and Unrealized Gains (Losses) Recognized on Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized gains (losses) on equity securities held at the reporting date | $ (137) | $ (134) | $ (137) | $ (588) |
Realized gains (losses) on equity securities sold during the period | 0 | 0 | 18 | 0 |
Gross realized and unrealized gains (losses) recognized on equity securities | $ (137) | $ (134) | $ (119) | $ (588) |
Securities - Equity Securities
Securities - Equity Securities Without Readily Determinable Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Equity Securities without readily determinable fair value, at cost | $ 55,812 | $ 39,019 |
Upward adjustments based on observable price changes, cumulative | 10,163 | 10,163 |
Equity Securities without readily determinable fair value, carrying value | $ 65,975 | $ 49,182 |
Securities - Gross Realized and
Securities - Gross Realized and Unrealized Gains (Losses) on Equity Securities without Readily Determinable Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized gains (losses) on equity securities still held at the reporting date | $ 0 | $ 0 | $ 0 | $ 10,163 |
Realized gains (losses) on equity securities sold during the period | 0 | 0 | 0 | 0 |
Gross realized and unrealized gains (losses) recognized on equity securities without readily determinable fair values | $ 0 | $ 0 | $ 0 | $ 10,163 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost of Securities and Their Estimated Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Available for sale securities: | ||||||
Amortized Cost | $ 298,482 | $ 263,519 | ||||
Gross Unrealized Gains | 1,073 | 427 | ||||
Gross Unrealized Losses | (7,231) | (9,442) | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 292,324 | 254,504 | ||||
Held to maturity securities: | ||||||
Fair Value | 4,756 | 5,476 | ||||
Allowance for credit losses | (2,890) | $ (2,876) | (2,444) | $ (2,430) | $ (2,355) | $ (2,082) |
Total held to maturity securities, net of ACL | 3,311 | 4,077 | ||||
Mortgage-backed securities, residential | ||||||
Available for sale securities: | ||||||
Amortized Cost | 49,346 | 55,329 | ||||
Gross Unrealized Gains | 9 | 235 | ||||
Gross Unrealized Losses | (6,173) | (4,931) | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 43,182 | 50,633 | ||||
Asset-backed securities | ||||||
Available for sale securities: | ||||||
Amortized Cost | 1,243 | 6,389 | ||||
Gross Unrealized Gains | 10 | 0 | ||||
Gross Unrealized Losses | 0 | (58) | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 1,253 | 6,331 | ||||
State and municipal | ||||||
Available for sale securities: | ||||||
Amortized Cost | 5,217 | 13,553 | ||||
Gross Unrealized Gains | 0 | 1 | ||||
Gross Unrealized Losses | (189) | (116) | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 5,028 | 13,438 | ||||
CLO securities | ||||||
Available for sale securities: | ||||||
Amortized Cost | 240,162 | 185,068 | ||||
Gross Unrealized Gains | 1,047 | 161 | ||||
Gross Unrealized Losses | (734) | (4,218) | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 240,475 | 181,011 | ||||
Held to maturity securities: | ||||||
Amortized Cost | 6,201 | 6,521 | ||||
Gross Unrealized Gains | 339 | 458 | ||||
Gross Unrecognized Losses | (1,784) | (1,503) | ||||
Fair Value | 4,756 | 5,476 | ||||
Allowance for credit losses | (2,890) | (2,444) | ||||
Total held to maturity securities, net of ACL | 3,311 | 4,077 | ||||
Corporate bonds | ||||||
Available for sale securities: | ||||||
Amortized Cost | 768 | 1,270 | ||||
Gross Unrealized Gains | 0 | 1 | ||||
Gross Unrealized Losses | (19) | (8) | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 749 | 1,263 | ||||
SBA pooled securities | ||||||
Available for sale securities: | ||||||
Amortized Cost | 1,746 | 1,910 | ||||
Gross Unrealized Gains | 7 | 29 | ||||
Gross Unrealized Losses | (116) | (111) | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | $ 1,637 | $ 1,828 |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available for Sale Securities, Amortized Cost | ||
Due in one year or less, amortized cost | $ 1,167 | |
Due from one year to five years, amortized cost | 2,212 | |
Due from five years to ten years, amortized cost | 72,866 | |
Due after ten years, amortized cost | 169,902 | |
Available for sale securities, with single maturity date, amortized cost | 246,147 | |
Amortized Cost | 298,482 | $ 263,519 |
Available for Sale Securities, Fair Value | ||
Due in one year or less, fair value | 1,165 | |
Due from one year to five years, fair value | 2,122 | |
Due from five years to ten years, fair value | 72,665 | |
Due after ten years, fair value | 170,300 | |
Available for sale securities, with single maturity date, fair value | 246,252 | |
Securities available for sale | 292,324 | 254,504 |
Held to Maturity Securities, Amortized Cost | ||
Due in one year or less, amortized cost | 0 | |
Due from one year to five years, amortized cost | 1,913 | |
Due from five years to ten years, amortized cost | 4,288 | |
Due after ten years, amortized cost | 0 | |
Held to maturity securities, with single maturity date, amortized cost | 6,201 | |
Total held to maturity securities, net of ACL | 6,201 | |
Held to Maturity Securities, Fair Value | ||
Due in one year or less, fair value | 0 | |
Due from one year to five years, fair value | 2,085 | |
Due from five years to ten years, fair value | 2,671 | |
Due after ten years, fair value | 0 | |
Held to maturity securities, with single maturity date, fair value | 4,756 | |
Fair Value | 4,756 | 5,476 |
Mortgage-backed securities, residential | ||
Available for Sale Securities, Amortized Cost | ||
Available for sale securities, without single maturity date, amortized cost | 49,346 | |
Amortized Cost | 49,346 | 55,329 |
Available for Sale Securities, Fair Value | ||
Available for sale securities, without single maturity date, fair value | 43,182 | |
Securities available for sale | 43,182 | 50,633 |
Held to Maturity Securities, Amortized Cost | ||
Held to maturity securities, without single maturity date, amortized cost | 0 | |
Held to Maturity Securities, Fair Value | ||
Held to maturity securities, without single maturity date, fair value | 0 | |
Asset-backed securities | ||
Available for Sale Securities, Amortized Cost | ||
Available for sale securities, without single maturity date, amortized cost | 1,243 | |
Amortized Cost | 1,243 | 6,389 |
Available for Sale Securities, Fair Value | ||
Available for sale securities, without single maturity date, fair value | 1,253 | |
Securities available for sale | 1,253 | 6,331 |
Held to Maturity Securities, Amortized Cost | ||
Held to maturity securities, without single maturity date, amortized cost | 0 | |
Held to Maturity Securities, Fair Value | ||
Held to maturity securities, without single maturity date, fair value | 0 | |
SBA pooled securities | ||
Available for Sale Securities, Amortized Cost | ||
Available for sale securities, without single maturity date, amortized cost | 1,746 | |
Amortized Cost | 1,746 | 1,910 |
Available for Sale Securities, Fair Value | ||
Available for sale securities, without single maturity date, fair value | 1,637 | |
Securities available for sale | 1,637 | $ 1,828 |
Held to Maturity Securities, Amortized Cost | ||
Held to maturity securities, without single maturity date, amortized cost | 0 | |
Held to Maturity Securities, Fair Value | ||
Held to maturity securities, without single maturity date, fair value | $ 0 |
Securities - Schedule of Procee
Securities - Schedule of Proceeds from Sales of Debt Securities and the Associated Gross Gains and Losses as well as Net Gains and Losses from Calls of Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 10,005 | $ 0 | $ 14,005 | $ 40,163 |
Gross gains | 5 | 0 | 5 | 2,512 |
Gross losses | 0 | 0 | 0 | 0 |
Net gains and losses from calls of securities | $ 0 | $ 0 | $ 0 | $ 2 |
Securities - Schedule of Availa
Securities - Schedule of Available for Sale Debt Securities in an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 18,901 | $ 193,142 |
Less than 12 months, unrealized losses | (223) | (5,201) |
12 months or more, fair value | 117,353 | 40,261 |
12 months or more, unrealized losses | (7,008) | (4,241) |
Total, fair value | 136,254 | 233,403 |
Total, unrealized losses | (7,231) | (9,442) |
Mortgage-backed securities, residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 1,429 | 26,030 |
Less than 12 months, unrealized losses | (100) | (1,507) |
12 months or more, fair value | 35,045 | 15,828 |
12 months or more, unrealized losses | (6,073) | (3,424) |
Total, fair value | 36,474 | 41,858 |
Total, unrealized losses | (6,173) | (4,931) |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 0 | 1,337 |
Less than 12 months, unrealized losses | 0 | (52) |
12 months or more, fair value | 0 | 4,994 |
12 months or more, unrealized losses | 0 | (6) |
Total, fair value | 0 | 6,331 |
Total, unrealized losses | 0 | (58) |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 1,537 | 12,680 |
Less than 12 months, unrealized losses | (64) | (116) |
12 months or more, fair value | 2,986 | 0 |
12 months or more, unrealized losses | (125) | 0 |
Total, fair value | 4,523 | 12,680 |
Total, unrealized losses | (189) | (116) |
CLO securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 14,966 | 151,572 |
Less than 12 months, unrealized losses | (34) | (3,407) |
12 months or more, fair value | 78,211 | 19,439 |
12 months or more, unrealized losses | (700) | (811) |
Total, fair value | 93,177 | 171,011 |
Total, unrealized losses | (734) | (4,218) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 749 | 261 |
Less than 12 months, unrealized losses | (19) | (8) |
12 months or more, fair value | 0 | 0 |
12 months or more, unrealized losses | 0 | 0 |
Total, fair value | 749 | 261 |
Total, unrealized losses | (19) | (8) |
SBA pooled securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 220 | 1,262 |
Less than 12 months, unrealized losses | (6) | (111) |
12 months or more, fair value | 1,111 | 0 |
12 months or more, unrealized losses | (110) | 0 |
Total, fair value | 1,331 | 1,262 |
Total, unrealized losses | $ (116) | $ (111) |
Securities - Summary of Activit
Securities - Summary of Activity in Allowance for Credit Losses for Held To Maturity Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for credit losses: | ||||
Beginning balance | $ 2,876 | $ 2,355 | $ 2,444 | $ 2,082 |
Credit loss expense | 14 | 75 | 446 | 348 |
Allowance for credit losses ending balance | $ 2,890 | $ 2,430 | $ 2,890 | $ 2,430 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Schedule of Loans Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale | $ 6,416 | $ 5,641 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale | $ 6,416 | $ 5,641 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Schedule of Amortized Cost and Unpaid Principal for Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost | $ 4,371,528 | $ 4,120,291 |
Unpaid Principal | 4,383,979 | 4,136,981 |
Difference | (12,451) | (16,690) |
Allowance for credit losses | (34,815) | (42,807) |
Loans, net | 4,336,713 | 4,077,484 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost | 817,064 | 678,144 |
Unpaid Principal | 818,140 | 679,239 |
Difference | (1,076) | (1,095) |
Construction, land development, land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost | 131,862 | 90,976 |
Unpaid Principal | 132,413 | 91,147 |
Difference | (551) | (171) |
1-4 family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost | 129,588 | 125,981 |
Unpaid Principal | 129,768 | 126,185 |
Difference | (180) | (204) |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost | 62,698 | 68,934 |
Unpaid Principal | 62,871 | 69,185 |
Difference | (173) | (251) |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost | 1,251,939 | 1,251,110 |
Unpaid Principal | 1,258,981 | 1,262,493 |
Difference | (7,042) | (11,383) |
Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost | 1,213,702 | 1,237,449 |
Unpaid Principal | 1,217,129 | 1,241,032 |
Difference | (3,427) | (3,583) |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost | 8,166 | 8,868 |
Unpaid Principal | 8,168 | 8,871 |
Difference | (2) | (3) |
Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost | 756,509 | 658,829 |
Unpaid Principal | 756,509 | 658,829 |
Difference | $ 0 | $ 0 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Premiums and discounts associated with acquired loans | $ 8,127 | $ 8,127 | $ 13,383 | |||
Net deferred origination and factoring fees | 4,324 | 4,324 | 3,307 | |||
Accrued interest on loans | 28,552 | 28,552 | 19,279 | |||
Gross loans | 4,371,528 | 4,371,528 | 4,120,291 | |||
Pledged loans | 1,610,699 | 1,610,699 | 1,356,922 | |||
Credit loss expense | 812 | $ 2,646 | 6,068 | $ 6,048 | ||
Total past due Over-Formula Advances recorded in factored receivables | 30,528 | 30,528 | 18,296 | |||
Interest earned on nonaccrual loans | 0 | 0 | 0 | 0 | ||
Commitments to lend | 325 | 325 | ||||
Past Due 90 Days or More | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 31,623 | 31,623 | 41,367 | |||
Loans Held for Investment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Net charge-offs | 1,206 | 2,465 | 14,210 | 4,204 | ||
Credit loss expense | 1,051 | 3,169 | 6,218 | 6,102 | ||
Changes in Allowance for Credit Losses | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Increase in allowance for credit losses due to changes in projected loss drivers and prepayment assumptions | 164 | 0 | 561 | 1,487 | ||
Increase (decrease) in allowance for credit losses due to changes in loan volume and mix | 395 | (520) | 179 | (2,665) | ||
Increase (decrease) in allowance for credit losses due to increase (decrease) in specific reserves | (714) | 1,278 | (8,732) | 3,077 | ||
Factored receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer reserves | 219,649 | 219,649 | 249,288 | |||
Gross loans | 1,213,702 | 1,213,702 | 1,237,449 | |||
Total past due Over-Formula Advances recorded in factored receivables | 0 | 0 | 0 | |||
Factored receivables | Past Due 90 Days or More | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 26,346 | 26,346 | 37,142 | |||
Factored receivables | Over-Formula Advances | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 3,581 | 3,581 | 8,202 | |||
Net charge-offs | $ 3,330 | |||||
Reimbursement for charge-off | $ 1,665 | |||||
Factored receivables | Over-Formula Advances | Past Due 90 Days or More | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total past due Over-Formula Advances recorded in factored receivables | 3,581 | 3,581 | 8,202 | |||
Factored receivables | Misdirected Payments Receivable | United States Postal Service | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 19,361 | 19,361 | 19,361 | |||
Factored receivables | Loans Held for Investment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Credit loss expense | 389 | 183 | 2,460 | 2,298 | ||
1-4 family residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 129,588 | 129,588 | 125,981 | |||
Total past due Over-Formula Advances recorded in factored receivables | 1,146 | 1,146 | 1,391 | |||
1-4 family residential | Past Due 90 Days or More | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 245 | 245 | 776 | |||
1-4 family residential | Loans Held for Investment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Credit loss expense | (8) | $ (16) | 195 | $ 268 | ||
1-4 family residential | Real Eatate Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Residential real estate loans in process of foreclosure | $ 0 | $ 0 | $ 129 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Summary of Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | $ 42,807 | |||
Credit Loss Expense | $ 812 | $ 2,646 | 6,068 | $ 6,048 |
Charge-offs | (15,560) | |||
Ending Balance | 34,815 | 34,815 | ||
Loans Held for Investment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 34,970 | 43,407 | 42,807 | 42,213 |
Credit Loss Expense | 1,051 | 3,169 | 6,218 | 6,102 |
Charge-offs | (1,825) | (2,747) | (15,560) | (5,466) |
Recoveries | 619 | 282 | 1,350 | 1,262 |
Ending Balance | 34,815 | 44,111 | 34,815 | 44,111 |
Commercial real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Charge-offs | (16) | |||
Commercial real estate | Loans Held for Investment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 4,783 | 5,167 | 4,459 | 3,961 |
Credit Loss Expense | 1,008 | (373) | 1,262 | 881 |
Charge-offs | (16) | 0 | (16) | (108) |
Recoveries | 0 | 0 | 70 | 60 |
Ending Balance | 5,775 | 4,794 | 5,775 | 4,794 |
Construction, land development, land | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Charge-offs | 0 | |||
Construction, land development, land | Loans Held for Investment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 1,235 | 1,192 | 1,155 | 827 |
Credit Loss Expense | (5) | (198) | 73 | 165 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 2 | 1 | 4 | 3 |
Ending Balance | 1,232 | 995 | 1,232 | 995 |
1-4 family residential | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Charge-offs | (5) | |||
1-4 family residential | Loans Held for Investment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 1,046 | 757 | 838 | 468 |
Credit Loss Expense | (8) | (16) | 195 | 268 |
Charge-offs | 0 | 0 | (5) | 0 |
Recoveries | 1 | 1 | 11 | 6 |
Ending Balance | 1,039 | 742 | 1,039 | 742 |
Farmland | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Charge-offs | 0 | |||
Farmland | Loans Held for Investment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 476 | 490 | 483 | 562 |
Credit Loss Expense | (42) | (23) | (49) | (95) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending Balance | 434 | 467 | 434 | 467 |
Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Charge-offs | (5,559) | |||
Commercial | Loans Held for Investment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 12,977 | 12,738 | 15,918 | 14,485 |
Credit Loss Expense | (44) | 3,431 | 2,271 | 2,417 |
Charge-offs | (213) | (208) | (5,559) | (1,192) |
Recoveries | 69 | 59 | 159 | 310 |
Ending Balance | 12,789 | 16,020 | 12,789 | 16,020 |
Factored receivables | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Charge-offs | (9,566) | |||
Factored receivables | Loans Held for Investment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 13,441 | 22,212 | 19,121 | 20,915 |
Credit Loss Expense | 389 | 183 | 2,460 | 2,298 |
Charge-offs | (1,453) | (2,433) | (9,566) | (3,853) |
Recoveries | 247 | 172 | 609 | 774 |
Ending Balance | 12,624 | 20,134 | 12,624 | 20,134 |
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Charge-offs | (414) | |||
Consumer | Loans Held for Investment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 166 | 197 | 175 | 226 |
Credit Loss Expense | (157) | 62 | (92) | 180 |
Charge-offs | (143) | (106) | (414) | (313) |
Recoveries | 300 | 49 | 497 | 109 |
Ending Balance | 166 | 202 | 166 | 202 |
Mortgage warehouse | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Charge-offs | 0 | |||
Mortgage warehouse | Loans Held for Investment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 846 | 654 | 658 | 769 |
Credit Loss Expense | (90) | 103 | 98 | (12) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending Balance | $ 756 | $ 757 | $ 756 | $ 757 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Summary of Amortized Cost Basis of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
ACL Allocation | $ 34,815 | $ 42,807 |
Collateral dependent loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 70,007 | 61,481 |
ACL Allocation | 9,437 | 18,170 |
Collateral dependent loans | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 4,355 | 2,884 |
Collateral dependent loans | Accounts Receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 39,404 | 42,409 |
Collateral dependent loans | Equipment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 3,103 | 5,442 |
Collateral dependent loans | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 23,145 | 10,746 |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 3,875 | 1,143 |
ACL Allocation | 327 | 283 |
Commercial real estate | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 1,998 | 1,003 |
Commercial real estate | Accounts Receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Commercial real estate | Equipment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 174 | 0 |
Commercial real estate | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 1,703 | 140 |
Construction, land development, land | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 150 |
ACL Allocation | 0 | 0 |
Construction, land development, land | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 150 |
Construction, land development, land | Accounts Receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Construction, land development, land | Equipment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Construction, land development, land | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
1-4 family residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 1,146 | 1,391 |
ACL Allocation | 126 | 108 |
1-4 family residential | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 1,120 | 1,342 |
1-4 family residential | Accounts Receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
1-4 family residential | Equipment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
1-4 family residential | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 26 | 49 |
Farmland | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 1,228 | 400 |
ACL Allocation | 0 | 0 |
Farmland | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 298 | 196 |
Farmland | Accounts Receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Farmland | Equipment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 108 |
Farmland | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 930 | 96 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 24,183 | 15,897 |
ACL Allocation | 2,080 | 4,737 |
Commercial | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 939 | 193 |
Commercial | Accounts Receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Commercial | Equipment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 2,929 | 5,334 |
Commercial | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 20,315 | 10,370 |
Factored receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 39,404 | 42,409 |
ACL Allocation | 6,904 | 13,042 |
Factored receivables | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Factored receivables | Accounts Receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 39,404 | 42,409 |
Factored receivables | Equipment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Factored receivables | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 171 | 91 |
ACL Allocation | 0 | 0 |
Consumer | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Consumer | Accounts Receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Consumer | Equipment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Consumer | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 171 | 91 |
Mortgage warehouse | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
ACL Allocation | 0 | 0 |
Mortgage warehouse | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Mortgage warehouse | Accounts Receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Mortgage warehouse | Equipment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | 0 | 0 |
Mortgage warehouse | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost | $ 0 | $ 0 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Summary of Contractually Past Due and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 4,371,528 | $ 4,120,291 |
Past Due 90 Days or More and Accruing | 26,346 | 37,142 |
Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 84,682 | 104,445 |
Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 44,021 | 46,716 |
Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 9,038 | 16,362 |
Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 31,623 | 41,367 |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,286,846 | 4,015,846 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 817,064 | 678,144 |
Past Due 90 Days or More and Accruing | 0 | 0 |
Commercial real estate | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,768 | 1,756 |
Commercial real estate | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 100 | 1,301 |
Commercial real estate | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 306 | 0 |
Commercial real estate | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,362 | 455 |
Commercial real estate | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 815,296 | 676,388 |
Construction, land development, land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 131,862 | 90,976 |
Past Due 90 Days or More and Accruing | 0 | 0 |
Construction, land development, land | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 145 |
Construction, land development, land | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Construction, land development, land | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Construction, land development, land | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 145 |
Construction, land development, land | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 131,862 | 90,831 |
1-4 family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 129,588 | 125,981 |
Past Due 90 Days or More and Accruing | 0 | 0 |
1-4 family residential | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,091 | 2,243 |
1-4 family residential | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 540 | 936 |
1-4 family residential | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 306 | 531 |
1-4 family residential | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 245 | 776 |
1-4 family residential | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 128,497 | 123,738 |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 62,698 | 68,934 |
Past Due 90 Days or More and Accruing | 0 | 0 |
Farmland | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 147 | 0 |
Farmland | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 147 | 0 |
Farmland | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Farmland | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Farmland | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 62,551 | 68,934 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,251,939 | 1,251,110 |
Past Due 90 Days or More and Accruing | 0 | 0 |
Commercial | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 22,268 | 7,616 |
Commercial | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 16,445 | 1,630 |
Commercial | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,173 | 3,139 |
Commercial | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,650 | 2,847 |
Commercial | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,229,671 | 1,243,494 |
Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,213,702 | 1,237,449 |
Past Due 90 Days or More and Accruing | 26,346 | 37,142 |
Factored receivables | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 59,352 | 92,590 |
Factored receivables | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 26,772 | 42,797 |
Factored receivables | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,234 | 12,651 |
Factored receivables | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 26,346 | 37,142 |
Factored receivables | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,154,350 | 1,144,859 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,166 | 8,868 |
Past Due 90 Days or More and Accruing | 0 | 0 |
Consumer | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 56 | 95 |
Consumer | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 17 | 52 |
Consumer | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 19 | 41 |
Consumer | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 20 | 2 |
Consumer | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,110 | 8,773 |
Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 756,509 | 658,829 |
Past Due 90 Days or More and Accruing | 0 | 0 |
Mortgage warehouse | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Mortgage warehouse | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Mortgage warehouse | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Mortgage warehouse | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Mortgage warehouse | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 756,509 | $ 658,829 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Summary of Amortized Cost Basis of Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Nonaccrual | $ 30,528 | $ 18,296 |
Nonaccrual With No ACL | 25,127 | 5,860 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Nonaccrual | 3,801 | 871 |
Nonaccrual With No ACL | 2,099 | 319 |
Construction, land development, land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Nonaccrual | 0 | 150 |
Nonaccrual With No ACL | 0 | 150 |
1-4 family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Nonaccrual | 1,146 | 1,391 |
Nonaccrual With No ACL | 958 | 1,238 |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Nonaccrual | 1,228 | 400 |
Nonaccrual With No ACL | 1,228 | 400 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Nonaccrual | 24,182 | 15,393 |
Nonaccrual With No ACL | 20,671 | 3,662 |
Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Nonaccrual | 0 | 0 |
Nonaccrual With No ACL | 0 | 0 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Nonaccrual | 171 | 91 |
Nonaccrual With No ACL | 171 | 91 |
Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Nonaccrual | 0 | 0 |
Nonaccrual With No ACL | $ 0 | $ 0 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Summary of Accrued Interest on Non Accrual Loans Reversed Through Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Accrued interest reversed through interest income | $ 86 | $ 1 | $ 139 | $ 7 |
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Accrued interest reversed through interest income | 1 | 0 | 17 | 0 |
Construction, land development, land | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Accrued interest reversed through interest income | 0 | 0 | 0 | 2 |
1-4 family residential | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Accrued interest reversed through interest income | 2 | 1 | 8 | 1 |
Farmland | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Accrued interest reversed through interest income | 35 | 0 | 57 | 0 |
Commercial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Accrued interest reversed through interest income | 47 | 0 | 55 | 4 |
Factored receivables | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Accrued interest reversed through interest income | 0 | 0 | 0 | 0 |
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Accrued interest reversed through interest income | 1 | 0 | 2 | 0 |
Mortgage warehouse | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Accrued interest reversed through interest income | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Schedule of Nonperforming Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 30,528 | $ 18,296 |
Factored receivables greater than 90 days past due | 26,346 | 37,142 |
Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Factored receivables greater than 90 days past due | 26,346 | 37,142 |
Nonperforming Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 30,528 | 18,296 |
Other nonperforming factored receivables | 0 | 491 |
Troubled debt restructurings accruing interest | 0 | 503 |
Total loans | 53,293 | 48,230 |
Nonperforming Loans | Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Factored receivables greater than 90 days past due | $ 22,765 | $ 28,940 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Summary of Analysis Performed Risk category Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | $ 2,288,104 | $ 2,593,213 |
Financing receivable, year one, originated, current fiscal year, gross charge-offs | 4,324 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 629,351 | 396,193 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 2,818 | |
Financing receivable, year three, originated, two years before current fiscal year | 284,552 | 393,487 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 4,512 | |
Financing receivable, year four, originated, three years before current fiscal year | 254,804 | 80,301 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 3,706 | |
Financing receivable, year five, originated, four years before current fiscal year | 69,187 | 34,304 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 27 | |
Prior | 205,018 | 91,678 |
Prior, gross charge-offs | 138 | |
Revolving Loans | 637,891 | 530,450 |
Revolving loans, gross charge-offs | 35 | |
Revolving Loans Converted To Term Loans | 2,621 | 665 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Amortized Cost | 4,371,528 | 4,120,291 |
Charge-offs | 15,560 | |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 2,272,788 | 2,564,651 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 572,986 | 382,067 |
Financing receivable, year three, originated, two years before current fiscal year | 276,373 | 367,878 |
Financing receivable, year four, originated, three years before current fiscal year | 179,341 | 79,063 |
Financing receivable, year five, originated, four years before current fiscal year | 67,719 | 34,199 |
Prior | 199,655 | 90,206 |
Revolving Loans | 637,077 | 530,088 |
Revolving Loans Converted To Term Loans | 2,621 | 665 |
Amortized Cost | 4,208,560 | 4,048,817 |
Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 15,316 | 28,562 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 56,365 | 14,126 |
Financing receivable, year three, originated, two years before current fiscal year | 8,179 | 25,609 |
Financing receivable, year four, originated, three years before current fiscal year | 75,463 | 1,238 |
Financing receivable, year five, originated, four years before current fiscal year | 1,468 | 105 |
Prior | 5,363 | 1,472 |
Revolving Loans | 814 | 362 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 162,968 | 71,474 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 140,428 | 235,095 |
Financing receivable, year one, originated, current fiscal year, gross charge-offs | 0 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 227,761 | 157,446 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year three, originated, two years before current fiscal year | 125,345 | 200,396 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 102,075 | 28,072 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year five, originated, four years before current fiscal year | 25,573 | 17,786 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 16 | |
Prior | 108,619 | 35,674 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 87,141 | 3,675 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 122 | 0 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Amortized Cost | 817,064 | 678,144 |
Charge-offs | 16 | |
Commercial real estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 140,428 | 231,427 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 189,753 | 156,895 |
Financing receivable, year three, originated, two years before current fiscal year | 122,245 | 198,541 |
Financing receivable, year four, originated, three years before current fiscal year | 55,488 | 28,033 |
Financing receivable, year five, originated, four years before current fiscal year | 24,826 | 17,786 |
Prior | 106,522 | 35,658 |
Revolving Loans | 87,141 | 3,675 |
Revolving Loans Converted To Term Loans | 122 | 0 |
Amortized Cost | 726,525 | 672,015 |
Commercial real estate | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 0 | 3,668 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 38,008 | 551 |
Financing receivable, year three, originated, two years before current fiscal year | 3,100 | 1,855 |
Financing receivable, year four, originated, three years before current fiscal year | 46,587 | 39 |
Financing receivable, year five, originated, four years before current fiscal year | 747 | 0 |
Prior | 2,097 | 16 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 90,539 | 6,129 |
Construction, land development, land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 35,355 | 71,236 |
Financing receivable, year one, originated, current fiscal year, gross charge-offs | 0 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 50,828 | 11,328 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year three, originated, two years before current fiscal year | 30,928 | 4,540 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 5,798 | 3,186 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year five, originated, four years before current fiscal year | 349 | 35 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 6,007 | 651 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 2,597 | 0 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 0 | 0 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Amortized Cost | 131,862 | 90,976 |
Charge-offs | 0 | |
Construction, land development, land | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 35,355 | 71,236 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 50,828 | 11,328 |
Financing receivable, year three, originated, two years before current fiscal year | 30,928 | 4,535 |
Financing receivable, year four, originated, three years before current fiscal year | 5,798 | 3,186 |
Financing receivable, year five, originated, four years before current fiscal year | 349 | 35 |
Prior | 6,007 | 506 |
Revolving Loans | 2,597 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 131,862 | 90,826 |
Construction, land development, land | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 5 |
Financing receivable, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Prior | 0 | 145 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 0 | 150 |
1-4 family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 7,872 | 26,443 |
Financing receivable, year one, originated, current fiscal year, gross charge-offs | 5 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 10,476 | 22,838 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year three, originated, two years before current fiscal year | 6,018 | 9,543 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 10,428 | 2,982 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year five, originated, four years before current fiscal year | 4,513 | 3,529 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 51,072 | 21,916 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 38,036 | 38,430 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 1,173 | 300 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Amortized Cost | 129,588 | 125,981 |
Charge-offs | 5 | |
1-4 family residential | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 7,705 | 26,306 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 10,460 | 22,639 |
Financing receivable, year three, originated, two years before current fiscal year | 6,003 | 9,536 |
Financing receivable, year four, originated, three years before current fiscal year | 10,253 | 2,929 |
Financing receivable, year five, originated, four years before current fiscal year | 4,441 | 3,528 |
Prior | 50,464 | 20,910 |
Revolving Loans | 37,909 | 38,361 |
Revolving Loans Converted To Term Loans | 1,173 | 300 |
Amortized Cost | 128,408 | 124,509 |
1-4 family residential | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 167 | 137 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 16 | 199 |
Financing receivable, year three, originated, two years before current fiscal year | 15 | 7 |
Financing receivable, year four, originated, three years before current fiscal year | 175 | 53 |
Financing receivable, year five, originated, four years before current fiscal year | 72 | 1 |
Prior | 608 | 1,006 |
Revolving Loans | 127 | 69 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 1,180 | 1,472 |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 16,193 | 19,252 |
Financing receivable, year one, originated, current fiscal year, gross charge-offs | 0 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 13,463 | 10,087 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year three, originated, two years before current fiscal year | 5,677 | 10,147 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 7,913 | 2,807 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year five, originated, four years before current fiscal year | 4,582 | 6,742 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 13,019 | 18,679 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 1,778 | 1,016 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 73 | 204 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Amortized Cost | 62,698 | 68,934 |
Charge-offs | 0 | |
Farmland | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 16,003 | 18,190 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 13,463 | 7,291 |
Financing receivable, year three, originated, two years before current fiscal year | 5,658 | 10,027 |
Financing receivable, year four, originated, three years before current fiscal year | 7,913 | 2,699 |
Financing receivable, year five, originated, four years before current fiscal year | 4,582 | 6,742 |
Prior | 11,085 | 18,569 |
Revolving Loans | 1,778 | 1,016 |
Revolving Loans Converted To Term Loans | 73 | 204 |
Amortized Cost | 60,555 | 64,738 |
Farmland | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 190 | 1,062 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 2,796 |
Financing receivable, year three, originated, two years before current fiscal year | 19 | 120 |
Financing receivable, year four, originated, three years before current fiscal year | 0 | 108 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Prior | 1,934 | 110 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 2,143 | 4,196 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 138,761 | 369,704 |
Financing receivable, year one, originated, current fiscal year, gross charge-offs | 2 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 324,550 | 192,512 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 516 | |
Financing receivable, year three, originated, two years before current fiscal year | 115,620 | 140,402 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 4,496 | |
Financing receivable, year four, originated, three years before current fiscal year | 105,071 | 42,950 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 368 | |
Financing receivable, year five, originated, four years before current fiscal year | 34,035 | 5,938 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 9 | |
Prior | 24,356 | 12,261 |
Prior, gross charge-offs | 133 | |
Revolving Loans | 508,293 | 487,182 |
Revolving loans, gross charge-offs | 35 | |
Revolving Loans Converted To Term Loans | 1,253 | 161 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Amortized Cost | 1,251,939 | 1,251,110 |
Charge-offs | 5,559 | |
Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 138,634 | 358,983 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 306,209 | 181,933 |
Financing receivable, year three, originated, two years before current fiscal year | 110,662 | 136,635 |
Financing receivable, year four, originated, three years before current fiscal year | 95,731 | 41,912 |
Financing receivable, year five, originated, four years before current fiscal year | 33,386 | 5,842 |
Prior | 23,715 | 12,145 |
Revolving Loans | 507,606 | 486,889 |
Revolving Loans Converted To Term Loans | 1,253 | 161 |
Amortized Cost | 1,217,196 | 1,224,500 |
Commercial | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 127 | 10,721 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 18,341 | 10,579 |
Financing receivable, year three, originated, two years before current fiscal year | 4,958 | 3,767 |
Financing receivable, year four, originated, three years before current fiscal year | 9,340 | 1,038 |
Financing receivable, year five, originated, four years before current fiscal year | 649 | 96 |
Prior | 641 | 116 |
Revolving Loans | 687 | 293 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 34,743 | 26,610 |
Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 1,190,760 | 1,209,886 |
Financing receivable, year one, originated, current fiscal year, gross charge-offs | 3,943 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 2,293 | |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 27,563 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 22,942 | 0 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 3,330 | |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 0 | 0 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 0 | 0 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 0 | 0 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Amortized Cost | 1,213,702 | 1,237,449 |
Charge-offs | 9,566 | |
Factored receivables | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 1,175,928 | 1,196,912 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 7,710 |
Financing receivable, year four, originated, three years before current fiscal year | 3,581 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 1,179,509 | 1,204,622 |
Factored receivables | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 14,832 | 12,974 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 19,853 |
Financing receivable, year four, originated, three years before current fiscal year | 19,361 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 34,193 | 32,827 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 2,226 | 2,768 |
Financing receivable, year one, originated, current fiscal year, gross charge-offs | 374 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 2,273 | 1,982 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 9 | |
Financing receivable, year three, originated, two years before current fiscal year | 964 | 896 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 16 | |
Financing receivable, year four, originated, three years before current fiscal year | 577 | 304 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 8 | |
Financing receivable, year five, originated, four years before current fiscal year | 135 | 274 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 2 | |
Prior | 1,945 | 2,497 |
Prior, gross charge-offs | 5 | |
Revolving Loans | 46 | 147 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 0 | 0 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Amortized Cost | 8,166 | 8,868 |
Charge-offs | 414 | |
Consumer | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 2,226 | 2,768 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 2,273 | 1,981 |
Financing receivable, year three, originated, two years before current fiscal year | 877 | 894 |
Financing receivable, year four, originated, three years before current fiscal year | 577 | 304 |
Financing receivable, year five, originated, four years before current fiscal year | 135 | 266 |
Prior | 1,862 | 2,418 |
Revolving Loans | 46 | 147 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 7,996 | 8,778 |
Consumer | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 1 |
Financing receivable, year three, originated, two years before current fiscal year | 87 | 2 |
Financing receivable, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 8 |
Prior | 83 | 79 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 170 | 90 |
Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 756,509 | 658,829 |
Financing receivable, year one, originated, current fiscal year, gross charge-offs | 0 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 0 | 0 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 0 | 0 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 0 | 0 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Amortized Cost | 756,509 | 658,829 |
Charge-offs | 0 | |
Mortgage warehouse | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 756,509 | 658,829 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | 756,509 | 658,829 |
Mortgage warehouse | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Amortized Cost | $ 0 | $ 0 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Amortized Cost Basis of Loan Modifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 3,057 | $ 3,057 |
% of Portfolio | 0.10% | 0.10% |
Term Extension and Rate Reduction | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 83,893 | $ 83,893 |
% of Portfolio | 1.90% | 1.90% |
Commercial real estate | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 111 | $ 111 |
% of Portfolio | 0% | 0% |
Commercial real estate | Term Extension and Rate Reduction | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 83,344 | $ 83,344 |
% of Portfolio | 10.20% | 10.20% |
1-4 family residential | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 271 | $ 271 |
% of Portfolio | 0.20% | 0.20% |
Farmland | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 762 | $ 762 |
% of Portfolio | 1.20% | 1.20% |
Commercial | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 1,913 | $ 1,913 |
% of Portfolio | 0.20% | 0.20% |
Commercial | Term Extension and Rate Reduction | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost | $ 549 | $ 549 |
% of Portfolio | 0% | 0% |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Financial Effect of Loan Modifications (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Commercial real estate | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Weighted average years added to life of modified loans | 3 months 18 days | 10 months 24 days |
Commercial real estate | Term Extension and Rate Reduction | ||
Financing Receivable, Modified [Line Items] | ||
Weighted average years added to life of modified loans | 6 months | 6 months |
Weighted average contractual interest rate, before modification | 10.10% | 10.10% |
Weighted average contractual interest rate, after modification | 5.10% | 5.10% |
1-4 family residential | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Weighted average years added to life of modified loans | 6 months | 6 months |
Farmland | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Weighted average years added to life of modified loans | 6 months | 6 months |
Commercial | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Weighted average years added to life of modified loans | 6 months | 7 months 6 days |
Commercial | Term Extension and Rate Reduction | ||
Financing Receivable, Modified [Line Items] | ||
Weighted average years added to life of modified loans | 3 months 18 days | 3 months 18 days |
Weighted average contractual interest rate, before modification | 9.50% | 9.50% |
Weighted average contractual interest rate, after modification | 8.60% | 8.60% |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses - Performance of Modified Loans (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Current | |
Financing Receivable, Modified [Line Items] | |
Modified loans | $ 86,950 |
Current | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 83,455 |
Current | 1-4 family residential | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 271 |
Current | Farmland | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 762 |
Current | Commercial | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 2,462 |
Past Due 30-89 Days | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 30-89 Days | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 30-89 Days | 1-4 family residential | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 30-89 Days | Farmland | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 30-89 Days | Commercial | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 90 Days or More | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 90 Days or More | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 90 Days or More | 1-4 family residential | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 90 Days or More | Farmland | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 90 Days or More | Commercial | |
Financing Receivable, Modified [Line Items] | |
Modified loans | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 233,709 | $ 233,709 |
Gross Carrying Amount | 93,962 | 90,920 |
Accumulated Amortization | (67,562) | (58,862) |
Net Carrying Amount | 26,400 | 32,058 |
Core deposit intangibles | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 43,578 | 43,578 |
Accumulated Amortization | (37,490) | (35,347) |
Net Carrying Amount | 6,088 | 8,231 |
Software intangible assets | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,932 | 16,932 |
Accumulated Amortization | (9,877) | (6,702) |
Net Carrying Amount | 7,055 | 10,230 |
Other intangible assets | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33,452 | 30,410 |
Accumulated Amortization | (20,195) | (16,813) |
Net Carrying Amount | $ 13,257 | $ 13,597 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Changes in Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill [Roll Forward] | ||||
Beginning balance | $ 262,958 | $ 270,666 | $ 265,767 | $ 276,856 |
Acquired intangible assets | 0 | 851 | 3,042 | 851 |
Acquired goodwill - measurement period adjustment | 0 | 0 | 0 | (18) |
Goodwill transferred to assets held for sale | 0 | 0 | 0 | (3,217) |
Intangible assets transferred to assets held for sale | 0 | 0 | 0 | (1,394) |
Goodwill transferred from assets held for sale | 0 | 0 | 0 | 3,217 |
Intangible assets transferred from assets held for sale | 0 | 0 | 0 | 1,394 |
Amortization of intangibles | (2,849) | (2,913) | (8,700) | (9,085) |
Ending balance | $ 260,109 | $ 268,604 | $ 260,109 | $ 268,604 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Reclassification of amount of (gains) losses recognized into income | $ 0 | $ 0 | $ 0 | $ 9,316 | ||
Discontinued Cash Flow Hedge | Interest Expense | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Termination fee | $ 732 | |||||
Discontinued Cash Flow Hedge | Other Noninterest Income | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Reclassification of amount of (gains) losses recognized into income | 8,851 | |||||
Discontinued Cash Flow Hedge | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Termination value | $ 9,316 | $ 9,316 | ||||
Interest rate swaps | Interest Expense | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Reclassification of amount of (gains) losses recognized into income | $ 232 | 233 | ||||
Other assets | Interest rate swaps | Derivatives designated as hedging instruments | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative asset, notional value | $ 200,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Pre-Tax Impact of Terminated Cash Flow Hedge on AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2022 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning Balance | $ 858,864 | $ 858,864 |
Ending Balance | 886,665 | 891,173 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Discontinued Cash Flow Hedge | ||
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Unrealized gains arising during the period | $ 9,316 | 9,316 |
Reclassification adjustments for amortization of unrealized (gains) into net income | (9,316) | |
Ending Balance | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Effect of Fair Value and Cash Flow Hedge on Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative | $ 0 | $ 0 | $ 0 | $ (4,705) |
Amount of (Gain) or Loss Reclassified from AOCI into Income | $ 0 | $ 0 | $ 0 | 7,103 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative | 2,398 | |||
Interest rate swaps | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) or Loss Reclassified from AOCI into Income | $ 7,103 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Closed Collateralized Loan Obligation ("CLO") Funds (Details) - Collateralized Loan Obligation Funds - USD ($) $ in Thousands | Jun. 20, 2017 | Sep. 22, 2016 | Jun. 02, 2016 |
Trinitas IV | |||
Variable Interest Entity [Line Items] | |||
Offering Amount | $ 406,650 | ||
Trinitas V | |||
Variable Interest Entity [Line Items] | |||
Offering Amount | $ 409,000 | ||
Trinitas VI | |||
Variable Interest Entity [Line Items] | |||
Offering Amount | $ 717,100 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Total held to maturity securities, net of ACL | $ 3,311 | $ 4,077 |
Collateralized Loan Obligation Funds | ||
Variable Interest Entity [Line Items] | ||
Total held to maturity securities, net of ACL | $ 3,311 | $ 4,077 |
Off-Balance Sheet Loan Commit_3
Off-Balance Sheet Loan Commitments - Summary of Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 15,441 | $ 1,417 |
Variable Rate | 563,103 | 487,965 |
Total | 578,544 | 489,382 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 15,725 | 12,309 |
Variable Rate | 9,809 | 4,897 |
Total | 25,534 | 17,206 |
Commitments to purchase loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 0 | 0 |
Variable Rate | 17,321 | 53,572 |
Total | 17,321 | 53,572 |
Mortgage warehouse commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 0 | 0 |
Variable Rate | 851,564 | 1,055,117 |
Total | $ 851,564 | $ 1,055,117 |
Off-Balance Sheet Loan Commit_4
Off-Balance Sheet Loan Commitments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Other Noninterest Expense | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Credit loss expense (benefit) | $ (253) | $ (598) | $ (596) | $ (402) | |
Other Liabilities | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Allowance for credit losses on off-balance sheet credit exposure | $ 3,010 | $ 3,010 | $ 3,606 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets measured at fair value on a recurring basis | ||
Securities available for sale | $ 292,324 | $ 254,504 |
Equity securities with readily determinable fair values | 4,289 | 5,191 |
Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 292,324 | 254,504 |
Loans held for sale | 6,416 | 5,641 |
Indemnification asset | 1,701 | 3,896 |
Revenue share asset | 2,696 | 5,515 |
Liabilities measured at fair value on a recurring basis | 272 | 575 |
Mutual fund | ||
Assets measured at fair value on a recurring basis | ||
Equity securities with readily determinable fair values | 4,289 | 5,191 |
Mutual fund | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Equity securities with readily determinable fair values | 4,289 | 5,191 |
Mortgage-backed securities, residential | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 43,182 | 50,633 |
Mortgage-backed securities, residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 43,182 | 50,633 |
Asset-backed securities | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,253 | 6,331 |
Asset-backed securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,253 | 6,331 |
State and municipal | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 5,028 | 13,438 |
State and municipal | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 5,028 | 13,438 |
CLO securities | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 240,475 | 181,011 |
CLO securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 240,475 | 181,011 |
Corporate bonds | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 749 | 1,263 |
Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 749 | 1,263 |
SBA pooled securities | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,637 | 1,828 |
SBA pooled securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,637 | 1,828 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Indemnification asset | 0 | 0 |
Revenue share asset | 0 | 0 |
Liabilities measured at fair value on a recurring basis | 0 | 0 |
Level 1 | Mutual fund | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Equity securities with readily determinable fair values | 4,289 | 5,191 |
Level 1 | Mortgage-backed securities, residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 1 | Asset-backed securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 1 | State and municipal | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 1 | CLO securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 1 | Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 1 | SBA pooled securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 292,324 | 254,504 |
Loans held for sale | 6,416 | 5,641 |
Indemnification asset | 0 | 0 |
Revenue share asset | 0 | 0 |
Liabilities measured at fair value on a recurring basis | 0 | 0 |
Level 2 | Mutual fund | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Equity securities with readily determinable fair values | 0 | 0 |
Level 2 | Mortgage-backed securities, residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 43,182 | 50,633 |
Level 2 | Asset-backed securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,253 | 6,331 |
Level 2 | State and municipal | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 5,028 | 13,438 |
Level 2 | CLO securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 240,475 | 181,011 |
Level 2 | Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 749 | 1,263 |
Level 2 | SBA pooled securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,637 | 1,828 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Indemnification asset | 1,701 | 3,896 |
Revenue share asset | 2,696 | 5,515 |
Liabilities measured at fair value on a recurring basis | 272 | 575 |
Level 3 | Mutual fund | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Equity securities with readily determinable fair values | 0 | 0 |
Level 3 | Mortgage-backed securities, residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 3 | Asset-backed securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 3 | State and municipal | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 3 | CLO securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 3 | Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 3 | SBA pooled securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 06, 2022 | Jun. 30, 2022 | |
Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Selling and closing costs for loans as a percentage of appraised value | 5% | |||
Minimum | Measurement Input, Prepayment Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Measurement input, prepayment rate | 0% | 0% | ||
Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Selling and closing costs for loans as a percentage of appraised value | 8% | |||
Maximum | Measurement Input, Prepayment Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Measurement input, prepayment rate | 11% | 11% | ||
Factored receivables | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Factored Receivable Disposal Group | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Revenue share asset, percent of expected cash payments to be received | 15% | |||
Factored receivables | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Factored Receivable Disposal Group | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Revenue share asset, percent of expected cash payments to be received | 15% | |||
Factored receivables | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Factored Receivable Disposal Group | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Revenue share asset, percent of expected cash payments to be received | 20% | |||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Indemnification asset, expected cash payments to be received | $ 1,791 | $ 4,101 | ||
Indemnification asset, discount rate | 5% | 5% | ||
Revenue share asset, expected cash payments to be received | $ 3,546 | $ 7,613 | ||
Level 3 | Measurement Input Discount Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Revenue share asset, discount rate | 10% | 10% |
Fair Value Disclosures - Reconc
Fair Value Disclosures - Reconciliation of Opening Balance to Closing Balance of Fair Value of Contingent Consideration (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Indemnification Asset | ||||
Indemnification Asset and Revenue Share Asset | ||||
Beginning balance | $ 1,905 | $ 4,377 | $ 3,896 | $ 4,786 |
Asset recognized | 0 | 0 | 0 | 0 |
Change in fair value of asset recognized in earnings | (204) | (204) | (530) | (613) |
Reduction / payments received | 0 | 0 | (1,665) | 0 |
Ending balance | 1,701 | 4,173 | 1,701 | 4,173 |
Revenue Share Asset | ||||
Indemnification Asset and Revenue Share Asset | ||||
Beginning balance | 3,053 | 5,210 | 5,515 | 0 |
Asset recognized | 0 | 1,027 | 0 | 6,237 |
Change in fair value of asset recognized in earnings | (78) | 171 | (1,867) | 171 |
Reduction / payments received | (279) | (230) | (952) | (230) |
Ending balance | 2,696 | 6,178 | 2,696 | 6,178 |
Return of Premium Liability | ||||
Return of Premium Liability | ||||
Beginning balance | 376 | 708 | 575 | 0 |
Return of premium liability recognized | 0 | 0 | 0 | 708 |
Change in fair value of return of premium liability recognized in earnings | (104) | (104) | (303) | (104) |
Return of premium payments made | 0 | (34) | 0 | (34) |
Ending balance | $ 272 | $ 570 | $ 272 | $ 570 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value of Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investment without readily determinable fair value | $ 65,975 | $ 49,182 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 35,368 | 74,764 |
Equity investment without readily determinable fair value | 38,088 | |
Fair Value, Measurements, Nonrecurring | Collateral dependent loans | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 1,374 | 269 |
Fair Value, Measurements, Nonrecurring | Collateral dependent loans | 1-4 family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 63 | 46 |
Fair Value, Measurements, Nonrecurring | Collateral dependent loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 1,431 | 6,994 |
Fair Value, Measurements, Nonrecurring | Collateral dependent loans | Factored receivables | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 32,500 | 29,367 |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 38,088 |
Equity investment without readily determinable fair value | 38,088 | |
Fair Value, Measurements, Nonrecurring | Level 1 | Collateral dependent loans | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Collateral dependent loans | 1-4 family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Collateral dependent loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Collateral dependent loans | Factored receivables | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Equity investment without readily determinable fair value | 0 | |
Fair Value, Measurements, Nonrecurring | Level 2 | Collateral dependent loans | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Collateral dependent loans | 1-4 family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Collateral dependent loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Collateral dependent loans | Factored receivables | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 35,368 | 36,676 |
Equity investment without readily determinable fair value | 0 | |
Fair Value, Measurements, Nonrecurring | Level 3 | Collateral dependent loans | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 1,374 | 269 |
Fair Value, Measurements, Nonrecurring | Level 3 | Collateral dependent loans | 1-4 family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 63 | 46 |
Fair Value, Measurements, Nonrecurring | Level 3 | Collateral dependent loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 1,431 | 6,994 |
Fair Value, Measurements, Nonrecurring | Level 3 | Collateral dependent loans | Factored receivables | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | $ 32,500 | $ 29,367 |
Fair Value Disclosures - Estima
Fair Value Disclosures - Estimated Fair Value of Company's Financial Assets and Financial Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Cash and cash equivalents, carrying amount | $ 337,583 | $ 408,182 |
FHLB and other restricted stock, carrying amount | 10,101 | 6,252 |
Securities - held to maturity, fair value | 4,756 | 5,476 |
Financial liabilities: | ||
Customer repurchase agreements, carrying amount | 0 | 340 |
Federal Home Loan Bank advances, carrying amount | 30,000 | 30,000 |
Subordinated notes, carrying amount | 108,454 | 107,800 |
Junior subordinated debentures, carrying amount | 41,592 | 41,158 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents, carrying amount | 337,583 | 408,182 |
Securities - held to maturity, carrying amount | 3,311 | 4,077 |
Loans not previously presented, gross, carrying amount | 4,336,160 | 4,088,411 |
FHLB and other restricted stock, carrying amount | 10,101 | 6,252 |
Accrued interest receivable, carrying amount | 33,930 | 21,977 |
Financial liabilities: | ||
Deposits, carrying amount | 4,487,051 | 4,171,336 |
Customer repurchase agreements, carrying amount | 340 | |
Federal Home Loan Bank advances, carrying amount | 30,000 | 30,000 |
Subordinated notes, carrying amount | 108,454 | 107,800 |
Junior subordinated debentures, carrying amount | 41,592 | 41,158 |
Accrued interest payable, carrying amount | 8,382 | 2,830 |
Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 337,583 | 408,182 |
Securities - held to maturity, fair value | 4,756 | 5,476 |
Loans not previously presented, gross, fair value | 4,241,527 | 3,993,430 |
Accrued interest receivable, fair value | 33,930 | 21,977 |
Financial liabilities: | ||
Deposits, fair value | 4,478,382 | 4,159,695 |
Customer repurchase agreements, fair value | 340 | |
Federal Home Loan Bank advances, fair value | 30,000 | 30,000 |
Subordinated notes, fair value | 88,057 | 104,400 |
Junior subordinated debentures, fair value | 43,392 | 42,721 |
Accrued interest payable, fair value | 8,382 | 2,830 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 337,583 | 408,182 |
Securities - held to maturity, fair value | 0 | 0 |
Loans not previously presented, gross, fair value | 129,815 | 187,729 |
Accrued interest receivable, fair value | 33,930 | 21,977 |
Financial liabilities: | ||
Deposits, fair value | 0 | 0 |
Customer repurchase agreements, fair value | 0 | |
Federal Home Loan Bank advances, fair value | 0 | 0 |
Subordinated notes, fair value | 0 | 0 |
Junior subordinated debentures, fair value | 0 | 0 |
Accrued interest payable, fair value | 8,382 | 2,830 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 0 | 0 |
Securities - held to maturity, fair value | 0 | 0 |
Loans not previously presented, gross, fair value | 0 | 0 |
Accrued interest receivable, fair value | 0 | 0 |
Financial liabilities: | ||
Deposits, fair value | 4,478,382 | 4,159,695 |
Customer repurchase agreements, fair value | 340 | |
Federal Home Loan Bank advances, fair value | 30,000 | 30,000 |
Subordinated notes, fair value | 88,057 | 104,400 |
Junior subordinated debentures, fair value | 43,392 | 42,721 |
Accrued interest payable, fair value | 0 | 0 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 0 | 0 |
Securities - held to maturity, fair value | 4,756 | 5,476 |
Loans not previously presented, gross, fair value | 4,111,712 | 3,805,701 |
Accrued interest receivable, fair value | 0 | 0 |
Financial liabilities: | ||
Deposits, fair value | 0 | 0 |
Customer repurchase agreements, fair value | 0 | |
Federal Home Loan Bank advances, fair value | 0 | 0 |
Subordinated notes, fair value | 0 | 0 |
Junior subordinated debentures, fair value | 0 | 0 |
Accrued interest payable, fair value | $ 0 | $ 0 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Actual Capital Amounts and Ratios (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Triumph Financial, Inc. | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk Weighted Assets) Actual Amount | $ 790,082 | $ 829,928 |
Total Capital (to Risk Weighted Assets) Actual Ratio | 0.158 | 0.177 |
Total Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 400,042 | $ 375,109 |
Total Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Ratio | 0.080 | 0.080 |
Tier 1 Capital (to Risk Weighted Assets) Actual Amount | $ 646,435 | $ 684,381 |
Tier 1 Capital (to Risk Weighted Assets) Actual Ratio | 0.129 | 0.146 |
Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 300,667 | $ 281,252 |
Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Ratio | 0.060 | 0.060 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Actual Amount | $ 559,843 | $ 598,223 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Actual Ratio | 0.112 | 0.127 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 224,937 | $ 211,969 |
Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.045 | 0.045 |
Tier 1 Capital (to Average Assets) Actual Amount | $ 646,435 | $ 684,381 |
Tier 1 Capital (to Average Assets) Actual Ratio | 0.124 | 0.130 |
Tier 1 Capital (to Average Assets) Minimum for Capital Adequacy Purposes Amount | $ 208,527 | $ 210,579 |
Tier 1 Capital (to Average Assets) Minimum for Capital Adequacy Purposes Ratio | 0.040 | 0.040 |
TBK Bank, SSB | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk Weighted Assets) Actual Amount | $ 746,239 | $ 732,785 |
Total Capital (to Risk Weighted Assets) Actual Ratio | 0.150 | 0.158 |
Total Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 397,994 | $ 371,030 |
Total Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Ratio | 0.080 | 0.080 |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 497,493 | $ 463,788 |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.100 | 0.100 |
Tier 1 Capital (to Risk Weighted Assets) Actual Amount | $ 713,628 | $ 697,022 |
Tier 1 Capital (to Risk Weighted Assets) Actual Ratio | 0.144 | 0.150 |
Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 297,345 | $ 278,809 |
Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Ratio | 0.060 | 0.060 |
Tier 1 Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 396,460 | $ 371,745 |
Tier 1 Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.080 | 0.080 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Actual Amount | $ 713,628 | $ 697,022 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Actual Ratio | 0.144 | 0.150 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 223,009 | $ 209,107 |
Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.045 | 0.045 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 322,124 | $ 302,043 |
Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.065 | 0.065 |
Tier 1 Capital (to Average Assets) Actual Amount | $ 713,628 | $ 697,022 |
Tier 1 Capital (to Average Assets) Actual Ratio | 0.137 | 0.132 |
Tier 1 Capital (to Average Assets) Minimum for Capital Adequacy Purposes Amount | $ 208,359 | $ 211,219 |
Tier 1 Capital (to Average Assets) Minimum for Capital Adequacy Purposes Ratio | 0.040 | 0.040 |
Tier 1 Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 260,448 | $ 264,023 |
Tier 1 Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.050 | 0.050 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Capital Structure (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||
Shares authorized (in shares) | 50,000,000 | 50,000,000 |
Shares issued (in shares) | 28,975,206 | 28,321,716 |
Treasury shares (in shares) | (5,683,513) | (4,268,131) |
Shares outstanding (in shares) | 23,291,693 | 24,053,585 |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock Series C | ||
Class of Stock [Line Items] | ||
Shares authorized (in shares) | 51,750 | 51,750 |
Shares issued (in shares) | 45,000 | 45,000 |
Shares outstanding (in shares) | 45,000 | 45,000 |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 |
Liquidation preference amount | $ 45,000,000 | $ 45,000,000 |
Dividend rate | 7.125% | 7.125% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||||
May 04, 2023 | Apr. 28, 2023 | Feb. 01, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Nov. 07, 2022 | May 23, 2022 | Feb. 07, 2022 | |
Class of Stock [Line Items] | |||||||||||
Payments for repurchase of common stock | $ 81,623,000 | $ 51,943,000 | |||||||||
Stock Repurchase Program | |||||||||||
Class of Stock [Line Items] | |||||||||||
Amount authorized under stock repurchase program | $ 50,000,000 | $ 75,000,000 | $ 50,000,000 | ||||||||
Shares repurchased into treasury stock (in shares) | 694,985 | 14,810 | |||||||||
Average price of shares repurchased into treasury stock (in dollars per share) | $ 70.02 | $ 88.81 | |||||||||
Payments for repurchase of common stock | $ 48,684,000 | $ 1,316,000 | |||||||||
Stock repurchase program, period in force | 1 year | ||||||||||
Dutch Auction Tender Offer | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares repurchased into treasury stock (in shares) | 408,615 | ||||||||||
Average price of shares repurchased into treasury stock (in dollars per share) | $ 58 | ||||||||||
Payments for repurchase of common stock | $ 24,772,000 | ||||||||||
Stock repurchase program, fees and expenses | $ 1,072,000 | ||||||||||
Accelerated Share Repurchase Agreement | |||||||||||
Class of Stock [Line Items] | |||||||||||
Amount authorized under stock repurchase program | $ 70,000,000 | $ 100,000,000 | |||||||||
Shares repurchased into treasury stock (in shares) | 247,954 | 961,373 | |||||||||
Stock repurchase program, percent of authorized shares repurchased | 80% |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation | $ 3,714 | $ 4,296 | $ 9,915 | $ 17,128 | ||
2014 Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares approved for issuance (in shares) | 2,900,000 | 2,900,000 | ||||
2014 Omnibus Incentive Plan | Restricted Stock Awards (RSAs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost | $ 2,500 | $ 2,500 | ||||
Remaining period to recognize cost | 1 year 6 months 21 days | |||||
2014 Omnibus Incentive Plan | Restricted Stock Awards (RSAs) | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation, award vesting period | 4 years | |||||
2014 Omnibus Incentive Plan | Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost | 9,308 | $ 9,308 | ||||
Remaining period to recognize cost | 3 years 10 days | |||||
2014 Omnibus Incentive Plan | Restricted stock units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation, award vesting period | 4 years | |||||
2014 Omnibus Incentive Plan | Restricted stock units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation, award vesting period | 5 years | |||||
2014 Omnibus Incentive Plan | Performance stock units - market based | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost | 6,665 | $ 6,665 | ||||
Remaining period to recognize cost | 2 years 3 months 29 days | |||||
2014 Omnibus Incentive Plan | Performance stock units - market based | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation, award vesting period | 3 years | |||||
Stock based compensation, award vesting percentage | 0% | |||||
2014 Omnibus Incentive Plan | Performance stock units - market based | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation, award vesting period | 5 years | |||||
Stock based compensation, award vesting percentage | 175% | |||||
Stock based compensation, award vesting percentage, potential multiplier | 200% | |||||
2014 Omnibus Incentive Plan | Performance Based Performance Stock Units (Performance Based PSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation, award vesting period | 3 years | |||||
Total unrecognized compensation cost | 0 | $ 0 | ||||
Stock based compensation, award vesting percentage | 142% | |||||
Stock based compensation expense recognized | 0 | $ 298 | $ 0 | $ 5,433 | ||
2014 Omnibus Incentive Plan | Performance Based Performance Stock Units (Performance Based PSUs) | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation, award vesting percentage | 0% | |||||
2014 Omnibus Incentive Plan | Performance Based Performance Stock Units (Performance Based PSUs) | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation, award vesting percentage | 200% | |||||
2014 Omnibus Incentive Plan | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation, award vesting period | 4 years | |||||
Remaining period to recognize cost | 3 years 1 month 9 days | |||||
Employees stock options contractual terms | 10 years | |||||
Total unrecognized compensation cost | $ 1,462 | $ 1,462 | ||||
2019 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved for issuance (in shares) | 2,500,000 | |||||
Purchase price of common stock, percentage | 85% | |||||
Offering period | 6 months | |||||
Shares issued under ESPP during period (in shares) | 37,909 | 24,516 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Changes in Company's Nonvested Restricted Stock Awards (Details) - Restricted Stock Awards (RSAs) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Shares | |
Beginning balance (in shares) | shares | 230,486 |
Granted (in shares) | shares | 13,374 |
Vested (in shares) | shares | (107,623) |
Forfeited (in shares) | shares | (12,978) |
Ending balance (in shares) | shares | 123,259 |
Weighted-Average Grant-Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 70.34 |
Granted (in dollars per share) | $ / shares | 59.69 |
Vested (in dollars per share) | $ / shares | 60.34 |
Forfeited (in dollars per share) | $ / shares | 75.48 |
Ending balance (in dollars per share) | $ / shares | $ 77.07 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Changes in Company's Nonvested Restricted Stock Units (Details) - Restricted stock units | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Shares | |
Beginning balance (in shares) | shares | 211,300 |
Granted (in shares) | shares | 139,836 |
Vested (in shares) | shares | (114,509) |
Forfeited (in shares) | shares | (5,112) |
Ending balance (in shares) | shares | 231,515 |
Weighted-Average Grant-Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 59.45 |
Granted (in dollars per share) | $ / shares | 52.59 |
Vested (in dollars per share) | $ / shares | 43.19 |
Forfeited (in dollars per share) | $ / shares | 63.87 |
Ending balance (in dollars per share) | $ / shares | $ 63.25 |
Stock Based Compensation - Su_3
Stock Based Compensation - Summary of Changes in Company's Nonvested Market Based Performance Stock Units (Details) - Performance stock units - market based | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Shares | |
Beginning balance (in shares) | 112,486 |
Granted (in shares) | 78,872 |
Incremental shares earned (in shares) | 52,694 |
Vested (in shares) | (122,969) |
Forfeited (in shares) | (3,537) |
Ending balance (in shares) | 117,546 |
Weighted-Average Grant-Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 55.57 |
Granted (in dollars per share) | $ / shares | 78.15 |
Vested (in dollars per share) | $ / shares | 36.10 |
Forfeited (in dollars per share) | $ / shares | 78.45 |
Ending balance (in dollars per share) | $ / shares | $ 87.55 |
Stock Based Compensation - Mark
Stock Based Compensation - Market Based PSUs Weighted-Average Assumptions (Details) - Performance stock units - market based - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 3 years | 3 years |
Stock price (in dollars per share) | $ 51.25 | $ 69.44 |
Triumph Financial stock price volatility | 49.33% | 55.17% |
Risk-free rate | 3.76% | 2.84% |
Stock Based Compensation - Su_4
Stock Based Compensation - Summary of Changes in Company's Nonvested Performance Based Performance Stock Units (Details) - Performance Based Performance Stock Units (Performance Based PSUs) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Shares | |
Beginning balance (in shares) | 255,738 |
Granted (in shares) | 0 |
Incremental shares earned (in shares) | 107,404 |
Vested (in shares) | (363,142) |
Forfeited (in shares) | 0 |
Ending balance (in shares) | 0 |
Weighted-Average Grant-Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 39.57 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 40 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 0 |
Stock Based Compensation - Su_5
Stock Based Compensation - Summary of Changes in Company's Stock Options (Details) - Stock options $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Shares | |
Beginning balance (in shares) | shares | 195,398 |
Granted (in shares) | shares | 57,930 |
Exercised (in shares) | shares | (6,023) |
Forfeited or expired (in shares) | shares | (3,195) |
Ending balance (in shares) | shares | 244,110 |
Fully vested shares and shares expected to vest (in shares) | shares | 244,110 |
Shares exercisable (in shares) | shares | 148,332 |
Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 39.48 |
Granted (in dollars per share) | $ / shares | 51.25 |
Exercised (in dollars per share) | $ / shares | 31.61 |
Forfeited or expired (in dollars per share) | $ / shares | 56.73 |
Ending balance (in dollars per share) | $ / shares | 42.24 |
Fully vested shares and shares expected to vest (in dollars per share) | $ / shares | 42.24 |
Shares exercisable (in dollars per share) | $ / shares | $ 32.81 |
Weighted-Average Remaining Contractual Term (In Years) | |
Outstanding | 6 years 3 months 14 days |
Fully vested shares and shares expected to vest | 6 years 3 months 14 days |
Shares exercisable | 4 years 7 months 2 days |
Aggregate Intrinsic Value (In Thousands) | |
Outstanding | $ | $ 6,055 |
Fully vested shares and shares expected to vest | $ | 6,055 |
Shares exercisable | $ | $ 4,984 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Information Related to Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cash received from option exercises, net | $ (52) | $ (74) |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value of options exercised | 140 | 280 |
Cash received from option exercises, net | (52) | (74) |
Tax benefit realized from option exercises | $ 29 | $ 59 |
Weighted average fair value per share of options granted (in dollars per share) | $ 25.20 | $ 32.15 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Option Weighted-Average Assumptions (Details) - Stock options | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 3.38% | 2.77% |
Expected term | 6 years 3 months | 6 years 3 months |
Expected stock price volatility | 45.65% | 43.33% |
Dividend yield | 0% | 0% |
Earnings Per Share - Factors Us
Earnings Per Share - Factors Used in Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic | ||||
Net income to common stockholders | $ 11,993 | $ 15,428 | $ 29,050 | $ 82,346 |
Weighted average common shares outstanding (in shares) | 23,162,614 | 24,227,020 | 23,220,331 | 24,483,054 |
Basic earnings per common share (in dollars per share) | $ 0.52 | $ 0.64 | $ 1.25 | $ 3.36 |
Diluted | ||||
Net income to common stockholders | $ 11,993 | $ 15,428 | $ 29,050 | $ 82,346 |
Weighted average common shares outstanding (in shares) | 23,162,614 | 24,227,020 | 23,220,331 | 24,483,054 |
Dilutive effects of: | ||||
Average shares and dilutive potential common shares (in shares) | 23,458,914 | 24,979,257 | 23,572,429 | 25,125,642 |
Diluted earnings per common share (in dollars per share) | $ 0.51 | $ 0.62 | $ 1.23 | $ 3.28 |
Stock options | ||||
Dilutive effects of: | ||||
Stock based compensation (in shares) | 82,909 | 85,239 | 77,286 | 95,252 |
Restricted stock awards | ||||
Dilutive effects of: | ||||
Stock based compensation (in shares) | 80,841 | 122,723 | 101,842 | 162,883 |
Restricted stock units | ||||
Dilutive effects of: | ||||
Stock based compensation (in shares) | 84,137 | 97,512 | 86,844 | 96,174 |
Performance stock units - market based | ||||
Dilutive effects of: | ||||
Stock based compensation (in shares) | 47,248 | 117,358 | 85,218 | 122,526 |
Performance stock units - performance based | ||||
Dilutive effects of: | ||||
Stock based compensation (in shares) | 0 | 327,016 | 0 | 163,508 |
Employee stock purchase program | ||||
Dilutive effects of: | ||||
Stock based compensation (in shares) | 1,165 | 2,389 | 908 | 2,245 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Shares not Considered in Computing Diluted Earnings per Common Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 101,138 | 52,878 | 104,114 | 52,878 |
Restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 0 | 6,348 | 0 | 6,348 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 11,250 | 15,000 | 11,250 | 15,000 |
Performance stock units - market based | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 14,424 | 45,296 | 14,424 | 45,296 |
Performance stock units - performance based | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 0 | 0 | 0 | 0 |
Employee stock purchase program | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 0 | 0 | 0 | 0 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Payments Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Transactional payment and audit fees | $ 4,780 | $ 3,545 | $ 12,570 | $ 10,156 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Total interest income | $ 107,533 | $ 103,225 | $ 313,693 | $ 312,967 | |
Intersegment interest allocations | 0 | 0 | 0 | 0 | |
Total interest expense | 16,206 | 4,955 | 37,533 | 13,190 | |
Net interest income (expense) | 91,327 | 98,270 | 276,160 | 299,777 | |
Credit loss expense (benefit) | 812 | 2,646 | 6,068 | 6,048 | |
Net interest income after credit loss expense (benefit) | 90,515 | 95,624 | 270,092 | 293,729 | |
Noninterest income | 13,410 | 12,668 | 35,943 | 71,949 | |
Noninterest expense | 86,259 | 86,689 | 265,936 | 253,860 | |
Net intersegment noninterest income (expense) | 0 | 0 | 0 | 0 | |
Net income before income tax expense | 17,666 | 21,603 | 40,099 | 111,818 | |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||||
Net intersegment noninterest income (expense) | 0 | 0 | 0 | 0 | |
Total assets | 5,599,794 | 5,599,794 | $ 5,333,783 | ||
Gross loans | 4,371,528 | 4,371,528 | 4,120,291 | ||
Operating Segments | Banking | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 68,328 | 49,864 | 193,678 | 138,286 | |
Total interest expense | 13,723 | 2,925 | 30,305 | 7,549 | |
Net interest income (expense) | 62,935 | 52,829 | 186,793 | 141,478 | |
Credit loss expense (benefit) | 410 | 2,388 | 3,164 | 2,638 | |
Net interest income after credit loss expense (benefit) | 62,525 | 50,441 | 183,629 | 138,840 | |
Noninterest income | 5,978 | 6,166 | 17,998 | 34,419 | |
Noninterest expense | 31,503 | 31,496 | 95,677 | 91,313 | |
Net income before income tax expense | 37,000 | 25,111 | 105,950 | 81,946 | |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||||
Total assets | 5,136,313 | 5,136,313 | 4,910,628 | ||
Gross loans | 3,766,692 | 3,766,692 | 3,572,716 | ||
Operating Segments | Factoring | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 34,244 | 49,561 | 108,769 | 161,789 | |
Total interest expense | 0 | 0 | 0 | 0 | |
Net interest income (expense) | 24,580 | 44,091 | 80,593 | 151,889 | |
Credit loss expense (benefit) | 375 | (52) | 2,405 | 1,961 | |
Net interest income after credit loss expense (benefit) | 24,205 | 44,143 | 78,188 | 149,928 | |
Noninterest income | 2,546 | 2,941 | 5,104 | 20,333 | |
Noninterest expense | 18,371 | 24,811 | 60,358 | 70,454 | |
Net income before income tax expense | 8,622 | 22,273 | 22,814 | 99,807 | |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||||
Total assets | 1,139,922 | 1,139,922 | 1,260,209 | ||
Gross loans | 1,041,448 | 1,041,448 | 1,151,727 | ||
Operating Segments | Payments | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 4,917 | 3,756 | 11,115 | 12,760 | |
Total interest expense | 0 | 0 | 0 | 0 | |
Net interest income (expense) | 6,251 | 3,336 | 15,871 | 11,919 | |
Credit loss expense (benefit) | 14 | 235 | 55 | 405 | |
Net interest income after credit loss expense (benefit) | 6,237 | 3,101 | 15,816 | 11,514 | |
Noninterest income | 4,817 | 3,518 | 12,643 | 17,069 | |
Noninterest expense | 14,556 | 14,066 | 46,912 | 46,062 | |
Net income before income tax expense | (3,744) | (7,447) | (18,333) | (17,479) | |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||||
Total assets | 484,895 | 484,895 | 371,948 | ||
Gross loans | 172,254 | 172,254 | 85,722 | ||
Operating Segments | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 44 | 44 | 131 | 132 | |
Total interest expense | 2,483 | 2,030 | 7,228 | 5,641 | |
Net interest income (expense) | (2,439) | (1,986) | (7,097) | (5,509) | |
Credit loss expense (benefit) | 13 | 75 | 444 | 1,044 | |
Net interest income after credit loss expense (benefit) | (2,452) | (2,061) | (7,541) | (6,553) | |
Noninterest income | 69 | 43 | 198 | 128 | |
Noninterest expense | 21,829 | 16,316 | 62,989 | 46,031 | |
Net income before income tax expense | (24,212) | (18,334) | (70,332) | (52,456) | |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||||
Total assets | 1,039,766 | 1,039,766 | 1,061,662 | ||
Gross loans | 0 | 0 | 0 | ||
Eliminations | |||||
Net Intersegment Noninterest Income (Expense) [Abstract] | |||||
Total assets | (2,201,102) | (2,201,102) | (2,270,664) | ||
Gross loans | (608,866) | (608,866) | $ (689,874) | ||
Eliminations | Banking | |||||
Segment Reporting Information [Line Items] | |||||
Intersegment interest allocations | 8,330 | 5,890 | 23,420 | 10,741 | |
Net intersegment noninterest income (expense) | 0 | 0 | 0 | 0 | |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||||
Net intersegment noninterest income (expense) | 0 | 0 | 0 | 0 | |
Eliminations | Factoring | |||||
Segment Reporting Information [Line Items] | |||||
Intersegment interest allocations | (9,664) | (5,470) | (28,176) | (9,900) | |
Net intersegment noninterest income (expense) | 242 | 0 | (120) | 0 | |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||||
Factoring revenue received from Payments | 510 | 0 | 680 | 0 | |
Payments revenue received from Factoring | (268) | 0 | (800) | 0 | |
Net intersegment noninterest income (expense) | 242 | 0 | (120) | 0 | |
Eliminations | Payments | |||||
Segment Reporting Information [Line Items] | |||||
Intersegment interest allocations | 1,334 | (420) | 4,756 | (841) | |
Net intersegment noninterest income (expense) | (242) | 0 | 120 | 0 | |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||||
Factoring revenue received from Payments | (510) | 0 | (680) | 0 | |
Payments revenue received from Factoring | 268 | 0 | 800 | 0 | |
Net intersegment noninterest income (expense) | (242) | 0 | 120 | 0 | |
Eliminations | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Intersegment interest allocations | 0 | 0 | 0 | 0 | |
Net intersegment noninterest income (expense) | 0 | 0 | 0 | 0 | |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||||
Net intersegment noninterest income (expense) | $ 0 | $ 0 | $ 0 | $ 0 |