Triumph Bancorp, Inc. - FORM 8-K - EX-99.1

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Exhibit 99.1

Triumph Bancorp Reports First Quarter Net Income to Common Stockholders of $4.8 Million.

DALLAS – April 27, 2016 (GLOBE NEWSWIRE) – Triumph Bancorp, Inc. (NASDAQ: TBK) today announced earnings and operating results for the first quarter of 2016.

As part of how we measure our results, we use certain non-GAAP financial measures to ascertain performance. These non-GAAP financial measures are reconciled in the section labeled “Metrics and Non-GAAP Financial Reconciliation” at the end of this document.

2016 First Quarter Highlights

For the first quarter of 2016, net income was $5.0 million and net income available to common stockholders was $4.8 million, compared to net income of $4.5 million and net income available to common stockholders of $4.3 million for the quarter ended December 31, 2015.

Fully diluted earnings per share were $0.27 for the quarter ended March 31, 2016, compared to $0.24 for the quarter ended December 31, 2015.

For the quarter ended March 31, 2016, our annualized return on average common equity and return on average assets were 7.37% and 1.20%, respectively, compared to an annualized return on average common equity and return on average assets of 6.63% and 1.10%, respectively, for the quarter ended December 31, 2015. Our ratio of tangible common stockholders’ equity to tangible assets was 14.30% as of March 31, 2016.

Net interest margin (“NIM”) was 5.90% for the quarter ended March 31, 2016.

Balance Sheet

Average loans outstanding for the first quarter of 2016 were $1.227 billion, an increase of $37.4 million, or 3.1%, from the average balance for the quarter ended December 31, 2015. Total loans held for investment were $1.246 billion at March 31, 2016, a decrease $46.0 million or 3.6% from December 31, 2015. Our commercial finance loan portfolio totaled $528.1 million as of March 31, 2016, an increase of $7.1 million or 1.4% in the first quarter.

Total deposits were $1.260 billion at March 31, 2016, an increase of $11.4 million or 0.9% for the first quarter of 2016. Non-interest-bearing deposits accounted for 13% of total deposits and non-time deposits accounted for 46% of total deposits. The average cost of our total funds was 0.69% for the quarter ended March 31, 2016 compared to 0.66% for the quarter ended December 31, 2015, on an annualized basis.

Net Interest Income

We earned net interest income for the quarter ended March 31, 2016 of $22.5 million compared to $23.1 million for the quarter ended December 31, 2015. Yields on loans for the quarter ended March 31, 2016 were down 33 bps from the prior quarter to 7.84% (down 37 basis points from the prior quarter to 7.47% adjusted to exclude loan discount accretion). NIM decreased 30 bps to 5.90% for the quarter ended March 31, 2016 from 6.20% for the quarter ended December 31, 2015. NIM adjusted to exclude loan discount accretion was 5.61% for the quarter ended March 31, 2016 compared to 5.94% for the quarter ended December 31, 2015.

Asset Quality

Non-performing assets increased 62 bps from December 31, 2015 to March 31, 2016 to 1.72% of total assets. The ratio of past due to total loans increased to 3.61% at March 31, 2016 from 2.41% at December 31, 2015. We recorded net recoveries of $0.04 million for the quarter ended March 31, 2016 compared to net charge-offs of $0.2 million for the quarter ended December 31, 2015. We recorded a negative provision for loan losses of $0.5 million for the quarter ended March 31, 2016 compared to a provision of $1.2 million for the quarter ended December 31, 2015. From December 31, 2015 to March 31, 2016, our allowance for loan and lease losses (“ALLL”) decreased from $12.6 million or 0.97% of total loans to $12.1 million or 0.97% of total loans.

Non-interest Income and Expense

We earned non-interest income for the quarter ended March 31, 2016 of $5.0 million compared to $5.6 million for the quarter ended December 31, 2015. Non-interest income for the quarter ended December 31, 2015 included net benefits of $0.9 million recorded to increase the bargain purchase gain realized on the acquisition of Doral Money, Inc.

For the quarter ended March 31, 2016, non-interest expense totaled $20.1 million, compared to $20.9 million for the quarter ended December 31, 2015.

Conference Call Information

Aaron P. Graft, Vice Chairman and CEO and Bryce Fowler, CFO will review the quarterly results in a conference call for investors and analysts beginning at 8:30 a.m. Central Time on Thursday, April 28, 2016.

To participate in the live conference call, please dial 1 (855) 779-1042 (U.S. and Canada) and enter Conference ID # 92155246. A simultaneous audio-only webcast may be accessed via our website at www.triumphbancorp.com through the Investor Relations, Webcasts and Presentations links, or through a direct link here at http://edge.media-server.com/m/p/fydwgo6t. An archive of this conference call will subsequently be available at this same location on our website.

About Triumph

Headquartered in Dallas, Texas, Triumph Bancorp, Inc. (NASDAQ: TBK) is a financial holding company with a diversified line of community banking, commercial finance and asset management activities. www.triumphbancorp.com

Forward-Looking Statements

This press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: our limited operating history as an integrated company; business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market area; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; risks related to the integration of acquired businesses (including our pending acquisition of ColoEast Bankshares, Inc.) and any future acquisitions; changes in management personnel; interest rate risk; concentration of our factoring services in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve non-performing assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; risks related to our asset management business; our risk management strategies; environmental liability associated with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the obligations associated with being a public company; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of the Federal Deposit Insurance Corporation insurance and other coverages; failure to receive regulatory approval for future acquisitions; increases in our capital requirements; and risk retention requirements under the Dodd-Frank Act.

While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward-looking statement disclosure contained in Triumph’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 26, 2016.

Non-GAAP Financial Measures

This press release includes certain Non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided at the end of this press release.

The following table sets forth key metrics used by Triumph to monitor its operations. Footnotes in this table can be found in our definitions of non-GAAP financial measures at the end of this document.

	As of and for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2016			2015			2015			2015			2015
Financial Highlights (Dollars in thousands):
Total assets	$	1,687,795		$	1,691,313		$	1,581,463		$	1,529,259		$	1,472,743
Loans held for investment	$	1,245,840		$	1,291,885		$	1,185,301		$	1,152,679		$	1,011,446
Deposits	$	1,260,393		$	1,248,950		$	1,200,036		$	1,189,259		$	1,173,679
Net income available to common stockholders	$	4,812		$	4,312		$	5,732		$	4,457		$	13,852

Performance Ratios - Annualized:
Return on average assets		1.20	%		1.10	%		1.50	%		1.23	%		3.93	%
Return on average common equity⁽¹⁾		7.37	%		6.63	%		9.00	%		7.27	%		23.95	%
Return on average tangible common equity⁽¹⁾		8.23	%		7.45	%		10.20	%		8.28	%		27.38	%
Return on average total equity		7.39	%		6.68	%		8.96	%		7.30	%		23.31	%
Yield on loans		7.84	%		8.17	%		8.34	%		9.49	%		8.50	%
Adjusted yield on loans⁽¹⁾		7.47	%		7.84	%		7.96	%		8.96	%		8.04	%
Cost of interest bearing deposits		0.74	%		0.71	%		0.69	%		0.65	%		0.64	%
Cost of total deposits		0.64	%		0.61	%		0.59	%		0.56	%		0.55	%
Cost of total funds		0.69	%		0.66	%		0.64	%		0.63	%		0.63	%
Net interest margin⁽¹⁾		5.90	%		6.20	%		6.45	%		7.20	%		6.11	%
Adjusted net interest margin⁽¹⁾		5.61	%		5.94	%		6.14	%		6.78	%		5.76	%
Net non-interest expense to average assets ⁽¹⁾⁽²⁾		3.61	%		3.96	%		4.04	%		3.95	%		4.18	%
Efficiency ratio⁽¹⁾⁽²⁾		73.09	%		75.40	%		73.85	%		66.75	%		79.70	%

Asset Quality:⁽³⁾
Past due to total loans		3.61	%		2.41	%		2.14	%		2.33	%		2.91	%
Non-performing loans to total loans		1.70	%		1.03	%		0.97	%		1.12	%		1.66	%
Non-performing assets to total assets		1.72	%		1.10	%		1.12	%		1.26	%		1.62	%
ALLL to non-performing loans		56.96	%		94.10	%		100.00	%		88.51	%		55.28	%
ALLL to total loans		0.97	%		0.97	%		0.97	%		0.99	%		0.92	%
Net charge-offs to average loans		0.00	%		0.01	%		0.01	%		0.03	%		0.02	%

Capital:⁽⁴⁾
Tier 1 capital to average assets		16.24	%		16.56	%		16.87	%		17.01	%		17.35	%
Tier 1 capital to risk-weighted assets		18.79	%		18.23	%		19.34	%		19.16	%		20.72	%
Common equity tier 1 capital to risk-weighted assets		16.62	%		16.23	%		17.18	%		16.98	%		18.33	%
Total capital to risk-weighted assets		19.65	%		19.11	%		20.21	%		20.04	%		21.51	%
Total equity to total assets		16.24	%		15.85	%		16.69	%		16.84	%		17.16	%
Tangible common stockholders' equity to tangible assets		14.30	%		13.85	%		14.50	%		14.51	%		14.75	%

Per Share Amounts:
Book value per share	$	14.67		$	14.34		$	14.09		$	13.73		$	13.52
Tangible book value per share⁽¹⁾	$	13.18		$	12.79		$	12.48		$	12.06		$	11.84
Basic earnings per common share	$	0.27		$	0.24		$	0.32		$	0.25		$	0.78
Diluted earnings per common share	$	0.27		$	0.24		$	0.32		$	0.25		$	0.76
Adjusted diluted earnings per common share⁽¹⁾⁽²⁾	$	0.27		$	0.19		$	0.22		$	0.25		$	0.14
Shares outstanding end of period		18,015,423			18,018,200			18,040,072			18,041,072			17,963,783

Unaudited consolidated balance sheet as of:

	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2016			2015			2015			2015			2015
ASSETS
Total cash and cash equivalents	$	123,715		$	105,277		$	115,783		$	99,714		$	178,442
Securities - available for sale		161,517			163,169			156,820			158,693			161,360
Securities - held to maturity		25,796			—			747			746			746
Loans held for sale		3,043			1,341			2,174			4,096			3,401
Loans held for investment		1,245,840			1,291,885			1,185,301			1,152,679			1,011,446
Allowance for loan and lease losses		(12,093	)		(12,567	)		(11,544	)		(11,462	)		(9,286	)
Loans, net		1,233,747			1,279,318			1,173,757			1,141,217			1,002,160
FHLB and FRB stock		4,234			3,818			7,992			5,707			4,466
Premises and equipment, net		19,934			22,227			21,807			21,677			21,716
Other real estate owned ("OREO"), net		7,478			5,177			6,201			6,322			6,991
Goodwill and intangible assets, net		26,877			27,854			28,995			30,174			30,211
Bank-owned life insurance		29,658			29,535			29,406			29,295			29,193
Deferred tax asset, net		15,240			15,945			15,838			15,582			14,983
Other assets		36,556			37,652			21,943			16,036			19,074
Total assets	$	1,687,795		$	1,691,313		$	1,581,463		$	1,529,259		$	1,472,743
LIABILITIES
Non-interest bearing deposits	$	160,818		$	168,264		$	167,931		$	164,560		$	167,538
Interest bearing deposits		1,099,575			1,080,686			1,032,105			1,024,699			1,006,141
Total deposits		1,260,393			1,248,950			1,200,036			1,189,259			1,173,679
Customer repurchase agreements		9,641			9,317			15,584			13,011			8,666
Federal Home Loan Bank advances		110,000			130,000			61,000			19,000			—
Junior subordinated debentures		24,754			24,687			24,620			24,553			24,487
Other liabilities		8,893			10,321			16,304			25,957			13,234
Total liabilities		1,413,681			1,423,275			1,317,544			1,271,780			1,220,066
EQUITY
Preferred stock series A		4,550			4,550			4,550			4,550			4,550
Preferred stock series B		5,196			5,196			5,196			5,196			5,196
Common stock		181			181			181			181			180
Additional paid-in-capital		194,687			194,297			193,465			192,605			191,745
Treasury stock, at cost		(597	)		(560	)		(184	)		(170	)		(161	)
Retained earnings		68,909			64,097			59,785			54,053			49,596
Accumulated other comprehensive income		1,188			277			926			1,064			1,571
Total equity		274,114			268,038			263,919			257,479			252,677
Total liabilities and equity	$	1,687,795		$	1,691,313		$	1,581,463		$	1,529,259		$	1,472,743

Unaudited consolidated statement of income for the three months ended:

	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2016			2015			2015			2015			2015
Interest income:
Loans, including fees	$	16,088		$	15,524		$	15,716		$	17,158		$	13,239
Factored receivables, including fees		7,822			8,952			8,829			8,654			7,509
Taxable securities		768			669			649			659			678
Tax exempt securities		7			14			17			16			12
Cash deposits		208			122			92			110			141
Total interest income		24,893			25,281			25,303			26,597			21,579
Interest expense:
Deposits		1,993			1,905			1,764			1,667			1,570
Junior subordinated debentures		302			288			283			278			272
Other borrowings		109			38			25			7			12
Total interest expense		2,404			2,231			2,072			1,952			1,854
Net interest income		22,489			23,050			23,231			24,645			19,725
Provision for loan losses		(511	)		1,178			165			2,541			645
Net interest income after provision for loan losses		23,000			21,872			23,066			22,104			19,080
Non-interest income:
Service charges on deposits		659			744			710			666			612
Card income		546			559			574			578			523
Net OREO gains/(losses) and valuation adjustments		(11	)		(128	)		(58	)		52			26
Net gains on sale of securities		5			2			15			242			—
Net gains on sale of loans		12			234			363			491			542
Fee income		534			465			542			502			422
Bargain purchase gain		—			900			1,708			—			12,509
Asset management fees		1,629			1,670			1,744			1,274			958
Other		1,607			1,125			700			964			1,067
Total non-interest income		4,981			5,571			6,298			4,769			16,659
Non-interest expense:
Salaries and employee benefits		12,252			12,448			12,416			12,042			13,269
Occupancy, furniture and equipment		1,493			1,546			1,575			1,555			1,572
FDIC insurance and other regulatory assessments		224			300			252			271			263
Professional fees		1,073			906			1,344			852			1,327
Amortization of intangible assets		977			1,141			1,179			895			764
Advertising and promotion		519			374			618			526			543
Communications and technology		1,432			1,596			951			927			886
Other		2,108			2,591			2,210			2,567			2,159
Total non-interest expense		20,078			20,902			20,545			19,635			20,783
Net income before income tax		7,903			6,541			8,819			7,238			14,956
Income tax expense		2,897			2,032			2,891			2,586			912
Net income	$	5,006		$	4,509		$	5,928		$	4,652		$	14,044
Dividends on preferred stock		(194	)		(197	)		(196	)		(195	)		(192	)
Net income available to common stockholders	$	4,812		$	4,312		$	5,732		$	4,457		$	13,852

Loans held for investment summarized as of:

	March 31,		December 31,		September 30,		June 30,		March 31,
(Dollars in thousands)	2016		2015		2015		2015		2015
Commercial real estate	$	293,485	$	291,819	$	247,175	$	234,090	$	236,659
Construction, land development, land		41,622		43,876		52,446		46,743		52,203
1-4 family residential properties		76,973		78,244		77,043		75,588		73,605
Farmland		33,250		33,573		25,784		25,701		24,805
Commercial		509,433		495,356		468,055		454,161		371,614
Factored receivables		199,532		215,088		201,803		199,716		171,452
Consumer		13,530		13,050		10,632		10,993		11,201
Mortgage warehouse		78,015		120,879		102,363		105,687		69,907
Total loans	$	1,245,840	$	1,291,885	$	1,185,301	$	1,152,679	$	1,011,446

A portion of our total loan portfolio consists of commercial finance products offered on a nationwide basis, as further summarized below:

	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2016			2015			2015			2015			2015
Equipment*	$	159,755		$	148,951		$	143,483		$	138,018		$	118,273
Asset based lending (General)*		85,739			75,134			85,641			64,836			36,511
Asset based lending (Healthcare)*		79,580			80,200			66,832			65,083			59,572
Premium finance		3,506			1,612			—			—			—
Factored receivables		199,532			215,088			201,803			199,716			171,452
Commercial finance	$	528,112		$	520,985		$	497,759		$	467,653		$	385,808

Total loans held for investment	$	1,245,840		$	1,291,885		$	1,185,301		$	1,152,679		$	1,011,446
Commercial finance as a % of total		42	%		40	%		42	%		41	%		38	%
Community banking as a % of total		58	%		60	%		58	%		59	%		62	%

*	Denotes equipment loans offered under our Triumph Commercial Finance brand, general asset based loans offered under our Triumph Commercial Finance brand and healthcare asset based loan products offered under our Triumph Healthcare Finance brand.

Deposits summarized as of:

	March 31,		December 31,		September 30,		June 30,		March 31,
(Dollars in thousands)	2016		2015		2015		2015		2015
Non-interest bearing demand	$	160,818	$	168,264	$	167,931	$	164,560	$	167,538
Interest bearing demand		227,002		238,833		206,603		228,909		231,718
Individual retirement accounts		63,265		60,971		58,619		56,285		55,773
Money market		111,578		112,214		117,888		116,019		120,001
Savings		77,969		74,759		72,244		73,016		74,236
Certificates of deposit		569,820		543,909		526,732		500,451		474,413
Brokered deposits		49,941		50,000		50,019		50,019		50,000
Total deposits	$	1,260,393	$	1,248,950	$	1,200,036	$	1,189,259	$	1,173,679

Net interest margin summarized for the three months ended:

	March 31, 2016							December 31, 2015
	Average				Average			Average				Average
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Interest earning assets:
Interest earning cash balances	$	129,232	$	208		0.65	%	$	122,626	$	122		0.39	%
Taxable securities		170,695		758		1.79	%		156,906		665		1.68	%
Tax exempt securities		1,135		7		2.48	%		2,135		14		2.60	%
FHLB and FRB stock		4,269		10		0.94	%		3,675		4		0.43	%
Loans		1,226,564		23,910		7.84	%		1,189,142		24,476		8.17	%
Total interest earning assets	$	1,531,895	$	24,893		6.54	%	$	1,474,484	$	25,281		6.80	%
Non-interest earning assets:
Other assets		150,745							150,407
Total assets	$	1,682,640						$	1,624,891
Interest bearing liabilities:
Deposits:
Interest bearing demand	$	220,841	$	57		0.10	%	$	227,695	$	40		0.07	%
Individual retirement accounts		61,912		191		1.24	%		60,492		189		1.24	%
Money market		112,226		65		0.23	%		114,524		67		0.23	%
Savings		76,551		10		0.05	%		73,117		9		0.05	%
Certificates of deposit		561,675		1,545		1.11	%		541,843		1,475		1.08	%
Brokered deposits		49,997		125		1.01	%		49,459		125		1.00	%
Total deposits		1,083,202		1,993		0.74	%		1,067,130		1,905		0.71	%
Junior subordinated debentures		24,714		302		4.91	%		24,645		288		4.64	%
Other borrowings		131,428		109		0.33	%		78,198		38		0.19	%
Total interest bearing liabilities	$	1,239,344	$	2,404		0.78	%	$	1,169,973	$	2,231		0.76	%
Non-interest bearing liabilities and equity:
Non-interest bearing demand deposits		160,378							171,262
Other liabilities		10,578							15,752
Total equity		272,340							267,904
Total liabilities and equity	$	1,682,640						$	1,624,891
Net interest income			$	22,489						$	23,050
Interest spread						5.76	%						6.04	%
Net interest margin						5.90	%						6.20	%

Metrics and non-GAAP financial reconciliation:

	As of and for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands, except per share amounts)	2016			2015			2015			2015			2015
Net income	$	5,006		$	4,509		$	5,928		$	4,652		$	14,044
Less: bargain purchase gain, non-taxable		—			900			1,708			—			12,509
Add: merger and acquisition expenses, net of tax		—			—			—			—			158
Add: incremental bonus related to acquisition, net of tax		—			—			—			—			1,138
Less: escrow recovery from Doral Healthcare Finance, net of tax		—			—			—			—			195
Adjusted net income	$	5,006		$	3,609		$	4,220		$	4,652		$	2,636
Dividends on preferred stock		(194	)		(197	)		(196	)		(195	)		(192	)
Adjusted net income available to common stockholders	$	4,812		$	3,412		$	4,024		$	4,457		$	2,444

Weighted average shares outstanding - diluted		17,981,276			17,916,251			18,587,821			17,813,825			18,428,663
Less: adjusted effects of assumed Preferred Stock conversion		—			—			676,351			—			676,351
Adjusted weighted average shares outstanding - diluted		17,981,276			17,916,251			17,911,470			17,813,825			17,752,312
Adjusted diluted earnings per common share	$	0.27		$	0.19		$	0.22		$	0.25		$	0.14

Net income available to common stockholders	$	4,812		$	4,312		$	5,732		$	4,457		$	13,852
Average tangible common equity		235,192			229,636			222,884			215,846			205,204
Return on average tangible common equity		8.23	%		7.45	%		10.20	%		8.28	%		27.38	%

Efficiency ratio:
Net interest income	$	22,489		$	23,050		$	23,231		$	24,645		$	19,725
Non-interest income		4,981			5,571			6,298			4,769			16,659
Operating revenue		27,470			28,621			29,529			29,414			36,384
Less: bargain purchase gain		—			900			1,708			—			12,509
Less: escrow recovery from Doral Healthcare Finance		—			—			—			—			300
Adjusted operating revenue	$	27,470		$	27,721		$	27,821		$	29,414		$	23,575
Total non-interest expenses	$	20,078		$	20,902		$	20,545		$	19,635		$	20,783
Less: merger and acquisition expenses		—			—			—			—			243
Less: incremental bonus related to acquisition		—			—			—			—			1,750
Adjusted non-interest expenses	$	20,078		$	20,902		$	20,545		$	19,635		$	18,790
Efficiency ratio		73.09	%		75.40	%		73.85	%		66.75	%		79.70	%

Net non-interest expense to average assets ratio:
Total non-interest expenses	$	20,078		$	20,902		$	20,545		$	19,635		$	20,783
Less: merger and acquisition expenses		—			—			—			—			243
Less: incremental bonus related to acquisition		—			—			—			—			1,750
Adjusted non-interest expense	$	20,078		$	20,902		$	20,545		$	19,635		$	18,790

Total non-interest income	$	4,981		$	5,571		$	6,298		$	4,769		$	16,659
Less: bargain purchase gain		—			900			1,708			—			12,509
Less: escrow recovery from Doral Healthcare Finance		—			—			—			—			300
Adjusted non-interest income	$	4,981		$	4,671		$	4,590		$	4,769		$	3,850
Adjusted net non-interest expenses	$	15,097		$	16,231		$	15,955		$	14,866		$	14,940
Average total assets	$	1,682,640		$	1,624,891		$	1,565,698		$	1,511,045		$	1,449,791
Net non-interest expense to average assets ratio		3.61	%		3.96	%		4.04	%		3.95	%		4.18	%

	As of and for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands, except per share amounts)	2016			2015			2015			2015			2015
Reported yield on loans		7.84	%		8.17	%		8.34	%		9.49	%		8.50	%
Effect of accretion income on acquired loans		(0.37	%)		(0.33	%)		(0.38	%)		(0.53	%)		(0.46	%)
Adjusted yield on loans		7.47	%		7.84	%		7.96	%		8.96	%		8.04	%

Reported net interest margin		5.90	%		6.20	%		6.45	%		7.20	%		6.11	%
Effect of accretion income on acquired loans		(0.29	%)		(0.26	%)		(0.31	%)		(0.42	%)		(0.35	%)
Adjusted net interest margin		5.61	%		5.94	%		6.14	%		6.78	%		5.76	%

Total stockholders' equity	$	274,114		$	268,038		$	263,919		$	257,479		$	252,677
Less: Preferred stock liquidation preference		9,746			9,746			9,746			9,746			9,746
Total common stockholders' equity		264,368			258,292			254,173			247,733			242,931
Less: Goodwill and other intangibles		26,877			27,854			28,995			30,174			30,211
Tangible common stockholders' equity	$	237,491		$	230,438		$	225,178		$	217,559		$	212,720
Common shares outstanding		18,015,423			18,018,200			18,040,072			18,041,072			17,963,783
Tangible book value per share	$	13.18		$	12.79		$	12.48		$	12.06		$	11.84

Total assets at end of period	$	1,687,795		$	1,691,313		$	1,581,463		$	1,529,259		$	1,472,743
Less: Goodwill and other intangibles		26,877			27,854			28,995			30,174			30,211
Adjusted total assets at period end	$	1,660,918		$	1,663,459		$	1,552,468		$	1,499,085		$	1,442,532
Tangible common stockholders' equity ratio		14.30	%		13.85	%		14.50	%		14.51	%		14.75	%

The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of such financial performance. The non-GAAP measures used by the Company include the following:

"Common stockholders' equity" is defined as total stockholders' equity at end of period less the liquidation preference value of the preferred stock.

“Adjusted diluted earnings per common share” is defined as adjusted net income available to common stockholders divided by adjusted weighted average diluted common shares outstanding. Excluded from net income available to common stockholders are material gains and expenses related to merger and acquisition-related activities, net of tax. In our judgment, the adjustments made to net income available to common stockholders allow management and investors to better assess our performance in relation to our core net income by removing the volatility associated with certain acquisition-related items and other discrete items that are unrelated to our core business. Weighted average diluted common shares outstanding are adjusted as a result of changes in their dilutive properties given the gain and expense adjustments described herein.

“Adjusted average common equity” is defined as average common equity less the average contribution impact of acquisitions.

“Adjusted average total assets” is defined as average total assets less the average contribution impact of acquisitions.

“Adjusted return on average common equity” is defined as adjusted net income available to common stockholders divided by adjusted average common equity.

“Adjusted return on average total assets” is defined as adjusted net income available to common stockholders divided by adjusted average total assets.

"Net interest margin" is defined as net interest income divided by average interest-earning assets.

"Tangible common stockholders' equity" is common stockholders' equity less goodwill and other intangible assets.

"Total tangible assets" is defined as total assets less goodwill and other intangible assets.

"Tangible book value per share" is defined as tangible common stockholders' equity divided by total common shares outstanding. This measure is important to investors interested in changes from period-to-period in book value per share exclusive of changes in intangible assets.

"Tangible common stockholders' equity ratio" is defined as the ratio of tangible common stockholders' equity divided by total tangible assets. We believe that this measure is important to many investors in the marketplace who are interested in relative changes from period-to period in common equity and total assets, each exclusive of changes in intangible assets.

"Return on Average Tangible Common Equity" is defined as net income available to common stockholders divided by average tangible common stockholders' equity.

"Efficiency ratio" is defined as non-interest expenses divided by our operating revenue, which is equal to net interest income plus non-interest income. Also excluded are material gains and expenses related to merger and acquisition-related activities, including divestitures. In our judgment, the adjustments made to operating revenue allow management and investors to better assess our performance in relation to our core operating revenue by removing the volatility associated with certain acquisition-related items and other discrete items that are unrelated to our core business.

"Net non-interest expense to average total assets" is defined as non-interest expenses net of non-interest income divided by total average assets. Excluded are material gains and expenses related to merger and acquisition-related activities, including divestitures. This metric is used by our management to better assess our operating efficiency.

"Adjusted yield on loans" is our yield on loans after excluding loan accretion from our acquired loan portfolio. Our management uses this metric to better assess the impact of purchase accounting on our yield on loans, as the effect of loan discount accretion is expected to decrease as the acquired loans roll off of our balance sheet.

“Adjusted net interest margin” is net interest margin after excluding loan accretion from the acquired loan portfolio. Our management uses this metric to better assess the impact of purchase accounting on net interest margin, as the effect of loan discount accretion is expected to decrease as the acquired loans mature or roll off of our balance sheet.

Adjusted to exclude material gains and expenses related to merger and acquisition-related activities, net of tax where applicable.

Asset quality ratios exclude loans held for sale.

Current quarter ratios are preliminary.

Source: Triumph Bancorp, Inc.

###

Investor Relations:

Luke Wyse

Vice President, Finance & Investor Relations

lwyse@triumphllc.com

214-365-6936

Media Contact:

Zachary Reed

Manager, Marketing & Communication

zreed@triumphllc.com

214-365-1931

Triumph Bancorp, Inc. - FORM 8-K - EX-99.1 - April 27, 2016

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