0001628280-23-003699 | 10-K | XBRL Viewer

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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2022	Feb. 13, 2023	Jun. 30, 2022
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 1,438,109,000
Entity Common Stock, Shares Outstanding		23,091,234
Documents Incorporated by Reference	Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Stockholders, which will be filed within 120 days after December 31, 2022, are incorporated by reference into Part III of this Report.
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0001539638
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
Series C Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	7.125% Series C Fixed-Rate Non-Cumulative Perpetual Preferred Stock
Trading Symbol	TFINP
Security Exchange Name	NASDAQ

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	Crowe LLP
Auditor Location	Franklin, TN
Auditor Firm ID	173

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 133,889	$ 122,929
Interest-bearing deposits with other banks	274,293	260,249
Total cash and cash equivalents	408,182	383,178
Securities - equity investments	5,191	5,504
Securities - available for sale	254,504	182,426
Securities - held to maturity, net of allowance for credit losses of $2,444 and $2,082, respectively, fair value $5,476 and $5,447, respectively	4,077	4,947
Loans held for sale	5,641	7,330
Loans, net of allowance for credit losses of $42,807 and $42,213, respectively	4,077,484	4,825,359
Federal Home Loan Bank and other restricted stock, at cost	6,252	10,146
Premises and equipment, net	103,339	105,729
Other real estate owned, net	0	524
Goodwill	233,709	233,727
Intangible assets, net	32,058	43,129
Bank-owned life insurance	41,493	40,993
Deferred tax asset, net	16,473	10,023
Indemnification asset	3,896	4,786
Other assets	141,484	98,449
Total assets	5,333,783	5,956,250
Deposits
Noninterest-bearing	1,756,680	1,925,370
Interest-bearing	2,414,656	2,721,309
Total deposits	4,171,336	4,646,679
Customer repurchase agreements	340	2,103
Federal Home Loan Bank advances	30,000	180,000
Paycheck Protection Program Liquidity Facility	0	27,144
Subordinated notes	107,800	106,957
Junior subordinated debentures	41,158	40,602
Other liabilities	94,178	93,901
Total liabilities	4,444,812	5,097,386
Commitments and contingencies - See Notes 15 and 16
Stockholders' equity - See Note 20
Preferred stock	45,000	45,000
Common stock, 24,053,585 and 25,158,879 shares outstanding, respectively	283	283
Additional paid-in-capital	534,790	510,939
Treasury stock, at cost	(182,658)	(104,743)
Retained earnings	498,456	399,351
Accumulated other comprehensive income	(6,900)	8,034
Total stockholders’ equity	888,971	858,864
Total liabilities and stockholders' equity	$ 5,333,783	$ 5,956,250

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 2,444	$ 2,082	$ 2,026	$ 0
Securities - held to maturity, fair value	5,476	5,447
Allowance for credit losses	$ 42,807	$ 42,213
Common stock, shares outstanding (in shares)	24,053,585	25,158,879

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest and dividend income:
Loans, including fees	$ 181,188	$ 183,555	$ 198,214
Factored receivables, including fees	223,193	197,835	114,434
Securities	8,187	5,401	8,229
FHLB and other restricted stock	258	156	530
Cash deposits	6,413	608	708
Total interest and dividend income	419,239	387,555	322,115
Interest expense:
Deposits	10,038	9,697	27,403
Subordinated notes	5,212	6,445	5,363
Junior subordinated debentures	2,662	1,775	2,114
Other borrowings	835	508	2,507
Total interest expense	18,747	18,425	37,387
Net interest income (expense)	400,492	369,130	284,728
Credit Loss Expense (Benefit)	6,925	(8,830)	38,329
Net interest income (expense) after credit loss expense	393,567	377,960	246,399
Noninterest income:
Net OREO gains (losses) and valuation adjustments	(133)	(347)	(616)
Net gains (losses) on sale or call of securities	2,512	5	3,226
Net gains (losses) on sale of loans	18,228	3,105	2,816
Insurance commissions	5,145	5,127	4,232
Gain on sale of subsidiary or division	0	0	9,758
Other	19,100	12,448	21,907
Total noninterest income	84,068	54,501	60,385
Noninterest expense:
Salaries and employee benefits	201,487	173,951	126,975
Occupancy, furniture and equipment	26,774	24,473	22,766
FDIC insurance and other regulatory assessments	1,543	2,118	1,520
Professional fees	15,644	12,592	9,349
Amortization of intangible assets	11,922	10,876	8,330
Advertising and promotion	7,595	5,174	4,718
Communications and technology	40,265	26,862	22,153
Other	35,401	31,461	26,263
Total noninterest expense	340,631	287,507	222,074
Operating income (loss)	137,004	144,954	84,710
Income tax expense	34,693	31,980	20,686
Net income	102,311	112,974	64,024
Dividends on preferred stock	(3,206)	(3,206)	(1,701)
Net income available to common stockholders	$ 99,105	$ 109,768	$ 62,323
Earnings per common share
Basic (in dollars per share)	$ 4.06	$ 4.44	$ 2.56
Diluted (in dollars per share)	$ 3.96	$ 4.35	$ 2.53
Service charges on deposits
Noninterest income:
Revenue	$ 6,844	$ 7,724	$ 5,274
Card income
Noninterest income:
Revenue	8,150	8,811	7,781
Fee income
Noninterest income:
Revenue	$ 24,222	$ 17,628	$ 6,007

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 102,311	$ 112,974	$ 64,024
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during the period	(10,865)	(2,424)	8,578
Tax effect	2,512	577	(2,062)
Unrealized holding gains (losses) arising during the period, net of taxes	(8,353)	(1,847)	6,516
Reclassification of amount realized through sale or call of securities	(2,512)	(5)	(3,226)
Tax effect	636	1	800
Reclassification of amount realized through sale or call of securities, net of taxes	(1,876)	(4)	(2,426)
Change in unrealized gains (losses) on securities, net of tax	(10,229)	(1,851)	4,090
Unrealized gains (losses) on derivative financial instruments:
Unrealized holding gains (losses) arising during the period	3,152	5,255	782
Tax effect	(754)	(1,260)	(185)
Unrealized holding gains (losses) arising during the period, net of taxes	2,398	3,995	597
Reclassification of amount of (gains) losses recognized into income	(9,316)	93	34
Tax effect	2,213	(22)	(8)
Reclassification of amount of (gains) losses recognized into income, net of taxes	(7,103)	71	26
Change in unrealized gains (losses) on derivative financial instruments	(4,705)	4,066	623
Total other comprehensive income (loss)	(14,934)	2,215	4,713
Comprehensive income	$ 87,377	$ 115,189	$ 68,737

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Preferred Stock	Common Stock	Preferred Stock	Preferred Stock Preferred Stock	Common Stock	Common Stock Common Stock	Additional Paid-in- Capital	Additional Paid-in- Capital Preferred Stock	Additional Paid-in- Capital Common Stock	Treasury Stock	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2019	$ 636,590	$ (1,770)			$ 0		$ 272		$ 473,251			$ (67,069)	$ 229,030	$ (1,770)	$ 1,106
Beginning balance, common stock (in shares) at Dec. 31, 2019							24,964,961
Beginning balance, treasury stock (in shares) at Dec. 31, 2019												2,198,681
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs (in shares)								630,268
Issuance of stock, net of issuance costs			$ 42,364	$ 13,942		$ 45,000		$ 7		$ (2,636)	$ 13,935
Issuance of restricted stock awards (in shares)							138,417
Issuance of restricted stock awards	0						$ 1		(1)
Stock based compensation	4,618								4,618
Forfeiture of restricted stock awards (in shares)							(6,067)					(6,067)
Forfeiture of restricted stock awards	0								211			$ (211)
Stock option exercises, net (in shares)							19,394
Stock option exercises, net	(227)								(227)
Purchase of treasury stock (in shares)							(878,755)					(878,755)
Purchase of treasury stock	(35,772)											$ (35,772)
Preferred stock dividends	(1,701)												(1,701)
Net income	64,024												64,024
Other comprehensive income (loss)	4,713														4,713
Ending balance at Dec. 31, 2020	726,781				45,000		$ 280		489,151			$ (103,052)	289,583		5,819
Ending balance, common stock (in shares) at Dec. 31, 2020							24,868,218
Ending balance, treasury stock (in shares) at Dec. 31, 2020												3,083,503
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of restricted stock awards (in shares)							241,014
Issuance of restricted stock awards	0						$ 2		(2)
Stock based compensation	20,315								20,315
Forfeiture of restricted stock awards (in shares)							(5,129)					(5,129)
Forfeiture of restricted stock awards	0								450			$ (450)
Stock option exercises, net (in shares)							59,844
Stock option exercises, net	$ 577						$ 1		576
Issuance of common stock pursuant to the employee stock purchase plan (in shares)	9,101						9,101
Issuance of common stock pursuant to the employee stock purchase plan	$ 449								449
Purchase of treasury stock (in shares)							(14,169)					(14,169)
Purchase of treasury stock	(1,241)											$ (1,241)
Preferred stock dividends	(3,206)												(3,206)
Net income	112,974												112,974
Other comprehensive income (loss)	2,215														2,215
Ending balance at Dec. 31, 2021	$ 858,864				45,000		$ 283		510,939			$ (104,743)	399,351		8,034
Ending balance, common stock (in shares) at Dec. 31, 2021	25,158,879						25,158,879
Ending 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)							12,471
Vesting of performance stock units (in shares)							20,996
Stock based compensation	$ 21,176								21,176
Forfeiture of restricted stock awards (in shares)							(19,186)					(19,186)
Forfeiture of restricted stock awards	0								1,201			$ (1,201)
Stock option exercises, net (in shares)							2,053
Stock option exercises, net	$ (74)								(74)
Issuance of common stock pursuant to the employee stock purchase plan (in shares)	24,516						24,516
Issuance of common stock pursuant to the employee stock purchase plan	$ 1,548								1,548
Purchase of treasury stock (in shares)							(1,146,144)					(1,146,144)
Purchase of treasury stock	(76,714)											$ (76,714)
Preferred stock dividends	(3,206)												(3,206)
Net income	102,311												102,311
Other comprehensive income (loss)	(14,934)														(14,934)
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 Dec. 31, 2022	24,053,585						24,053,585
Ending balance, treasury stock (in shares) at Dec. 31, 2022												4,268,131

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 102,311	$ 112,974	$ 64,024
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	13,302	12,037	10,720
Net accretion on loans	(8,643)	(9,289)	(10,711)
Amortization of subordinated notes issuance costs	843	1,224	182
Amortization of junior subordinated debentures	556	530	506
Net amortization on securities	(882)	(992)	(129)
Amortization of intangible assets	11,922	10,876	8,330
Deferred taxes	(1,779)	(5,832)	(2,080)
Credit loss expense (benefit)	6,925	(8,830)	38,329
Stock based compensation	21,176	20,315	4,618
Net (gains) losses on sale or call of debt securities	(2,512)	(5)	(3,226)
Net (gains) losses on equity securities	(9,850)	322	(389)
Net OREO (gains) losses and valuation adjustments	133	347	616
Origination of loans held for sale	(12,024)	(37,542)	(60,867)
Purchases of loans held for sale	(14,069)	(21,746)	(50,765)
Proceeds from sale of loans originated or purchased for sale	26,544	60,037	109,471
Net (gains) losses on sale of loans	(18,228)	(3,105)	(2,816)
Net change in operating leases	190	2,242	1,054
Gain on sale of subsidiary or division	0	0	(9,758)
Contingent consideration paid	0	0	(22,000)
(Increase) decrease in other assets	(35,176)	(8,684)	12,215
Increase (decrease) in other liabilities	(6,252)	12,080	10,003
Net cash provided by (used in) operating activities	74,487	136,959	97,327
Cash flows from investing activities:
Purchases of securities available for sale	(140,774)	(58,787)	(133,970)
Proceeds from sales of securities available for sale	40,163	0	70,198
Proceeds from maturities, calls, and pay downs of securities available for sale	26,339	99,152	96,768
Proceeds from maturities, calls, and pay downs of securities held to maturity	679	1,003	693
Purchases of loans held for investment	(147,809)	(94,314)	(324,892)
Proceeds from sale of loans	232,842	87,813	165,877
Net change in loans	581,599	153,946	(632,517)
Purchases of premises and equipment, net	(10,912)	(14,362)	(17,574)
Net proceeds from sale of OREO	438	1,253	2,111
(Purchases) redemptions of FHLB and other restricted stock, net	3,894	(3,395)	13,109
Proceeds from BOLI	0	2,273	0
Net cash (paid for) received in acquisitions	0	(96,926)	(108,375)
Proceeds from sale of disposal group	85,923	0	93,835
Net cash provided by (used in) investing activities	672,382	77,656	(774,737)
Cash flows from financing activities:
Net increase (decrease) in deposits	(464,512)	(69,921)	921,333
Increase (decrease) in customer repurchase agreements	(1,763)	(996)	1,066
Increase (decrease) in Federal Home Loan Bank advances	(150,000)	75,000	(325,000)
Proceeds from other borrowings, net	0	294,854	231,370
Repayment of other borrowings	(27,144)	(441,346)	(39,510)
Issuance of preferred stock, net of issuance costs	0	0	42,364
Preferred dividends	(3,206)	(3,206)	(1,701)
Stock option exercises, net	(74)		(227)
Stock option exercises, net		577
Proceeds from employee stock purchase plan common stock issuance	1,548	449	0
Purchase of treasury stock	(76,714)	(1,241)	(35,772)
Net cash provided by (used in) financing activities	(721,865)	(145,830)	793,923
Net increase (decrease) in cash and cash equivalents	25,004	68,785	116,513
Cash and cash equivalents at beginning of period	383,178	314,393	197,880
Cash and cash equivalents at end of period	408,182	383,178	314,393
Supplemental cash flow information:
Interest paid	16,328	18,950	41,743
Income taxes paid, net	47,215	40,004	12,080
Cash paid for operating lease liabilities	4,052	2,296	4,236
Supplemental noncash disclosures:
Loans transferred to OREO	47	692	1,150
Loans held for investment transferred to loans held for sale	229,105	83,975	185,823
Assets transferred to assets held for sale	80,819	0	84,077
Deposits transferred to deposits held for sale	10,434	0	0
Lease liabilities arising from obtaining right-of-use assets	5,267	19,571	1,777
Securities available for sale purchased, not settled	7,960	0	0
Non-cash consideration received from sale of loan portfolio or disposal group	5,529	0	0
Indemnification Asset
Supplemental noncash disclosures:
Indemnification reduction	$ 0	$ 35,633	$ 0

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2022
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. On December 1, 2022 we completed an extensive marketing rebranding effort, including a change of the company name from Triumph Bancorp, Inc. to Triumph Financial, Inc. and a change of our factoring subsidiary's company name from Triumph Business Capital LLC to Triumph Financial Services LLC ("Triumph Financial Services"). Said rebranding efforts had no impact to the composition of legal entities, financial reporting, employee roles, management structure, or work activities and expectations. On June 30, 2020, the Company sold the assets of Triumph Premium Finance (“TPF”) and exited its premium finance line of business. TPF operated within the Company’s TBK Bank subsidiary. See Note 2 – Acquisitions and Divestitures for additional information pertaining to the TPF sale and the impact of the transaction on the Company’s consolidated financial statements. Principles of Consolidation and Basis of Presentation The Company consolidates subsidiaries in which it holds, directly or indirectly, a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity under U.S. generally accepted accounting principles (“GAAP”). Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has at least a majority of the voting interest. Variable interest entities (“VIEs”) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. In consolidation, all significant intercompany accounts and transactions are eliminated. Investments in unconsolidated entities are accounted for using the equity method of accounting when the Company has the ability to exercise significant influence over operating and financing decisions. Investments that do not meet the criteria for equity method accounting are accounted for using the cost method of accounting. The accounting and reporting policies of the Company and its subsidiaries conform to GAAP and general practice within the banking industry. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The Company uses the accrual basis of accounting for financial reporting purposes. Use of Estimates To prepare financial statements in conformity with GAAP management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, other short-term investments and federal funds sold. All highly liquid investments with an initial maturity of less than 90 days are considered to be cash equivalents. Certain items, including loan and deposit transactions, customer repurchase agreements, and FHLB advances and repayments, are presented net in the statement of cash flows. Debt Securities The Company determines the classification of debt securities at the time of purchase. Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Debt securities not classified as held to maturity or trading are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss), net of tax. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method. Amortization of premiums and discounts are recognized in interest income over the period to maturity using the interest method, except for premiums on callable debt securities, which are amortized to their earliest call date. The Company has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest in other assets in the consolidated balance sheets. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on nonaccrual is reversed against interest income. There was no accrued interest related to debt securities reversed against interest income for the years ended December 31, 2022, 2021 and 2020. Allowance for Credit Losses – Available for Sale Securities For available for sale debt securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired available for sale debt security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in such a situation. In evaluating available for sale debt securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable is excluded from the estimate of credit losses. Allowance for Credit Losses – Held to Maturity Securities The allowance for credit losses on held to maturity securities is estimated on a collective basis by major security type. At December 31, 2022 and 2021, the Company’s held to maturity securities consisted of 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. Accrued interest receivable is excluded from the estimate of credit losses. Equity Securities Equity securities are recorded at fair value, with unrealized gains and losses included in earnings. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method. Loans Held for Sale The Company elects the fair value option for recording 1-4 family residential mortgage loans and commercial loans held for sale. The fair value of loans held for sale is determined based on outstanding commitments from investors to purchase such loans or prevailing market rates. Increases or decreases in the fair value of loans held for sale, if any, are charged to earnings and are recorded in noninterest income in the consolidated statements of income. Gains and losses on sales of loans are based on the difference between the final selling price and the carrying value of the related loan sold. Mortgage loans held for sale are generally sold with servicing rights released. Management occasionally transfers loans held for investment to loans held for sale. Gains or losses on the transfer of loans to loans held for sale are recorded in noninterest income in the consolidated statements of income unless such loans have experienced a decline in fair value due to credit quality concerns. For such transfers experiencing a decline in fair value due to credit quality, the Company first applies its charge-off policy which requires recognizing the confirmed loss via a charge-off against the allowance for credit losses which is measured as the excess of the loan's amortized cost basis over the loan's fair value. The charge-off is reflected as a write-down of the loan resulting in a new amortized cost basis. To the extent that the loan’s fair value loss has not already been provided for in the allowance for credit losses, an additional credit loss expense is made to provide sufficient allowance to absorb the charge-off. If the allowance for credit losses amount on the transferred loan at the transfer date to the held for sale category exceeds the amount of the charge-off, any remaining excess allowance for credit loss is reversed into earnings through credit loss expense. After the write-down is taken, the loans is transferred from held to investment to held for sale at its new amortized cost basis which approximate fair value. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their amortized cost basis, which is the unpaid principal balance outstanding, net of unearned income, deferred loan fees and costs, premiums and discounts associated with acquisition date fair value adjustments on acquired loans, and any direct principal charge-offs. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in other assets on consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the remaining life of the loan without anticipating prepayments. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful. The accrual of interest income on loans is typically discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection, or if full collection of interest or principal becomes uncertain. Consumer loans are typically charged off no later than 120 days past due. All interest accrued but not received for a loan placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Factored Receivables The Company purchases invoices from its factoring clients in schedules or batches. To a much lesser extent, the Company will also make short-term advances to its clients on transportation contracts for upcoming loads. Cash is advanced to the client to the extent of the applicable advance rate, less fees, as set forth in the individual factoring agreements. The face value of the invoices purchased or amount advanced is recorded by the Company as factored receivables, and the unadvanced portions of the invoices purchased, less fees, are considered client reserves. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits in the consolidated balance sheets. Unearned factoring fees and unearned net origination fees are deferred and recognized over the weighted average collection period for each client. Subsequent factoring fees are recognized in interest income as incurred by the client and deducted from the clients’ reserve balances. Other factoring-related fees, which include wire transfer fees, carrier payment fees, fuel advance fees, and other similar fees, are reported by the Company as non-interest income. Acquired Loans Acquired loans are recorded at fair value at the date of acquisition based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Certain larger purchased loans are individually evaluated while certain purchased loans are grouped together according to similar risk characteristics and are treated in the aggregate when applying various valuation techniques. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. Prior to January 1, 2020, loans acquired in a business combination that had evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considered various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” was recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” were not recognized on the balance sheet and did not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment were recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows were recognized as impairment. Valuation allowances on PCI loans reflected only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately were not to be received). Subsequent to January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. All loans considered to be PCI prior to January 1, 2020 were converted to PCD on that date. For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income or expense on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. Allowance for Credit Losses – Loans The Company adopted the current expected credit loss model under Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) on January 1, 2020 using the modified retrospective approach. The Company recorded a net reduction of retained earnings of $1,770,000 upon adoption. The transition adjustment included an increase in the allowance for credit losses on loans of $269,000, an increase in the allowance for credit losses on held to maturity debt securities of $126,000, and an increase in the allowance for credit losses on off-balance sheet credit exposures of $1,918,000, net of the corresponding increases in deferred tax assets of $543,000. Under the current expected credit loss model adopted by the Company on January 1, 2020, the allowance for credit losses on loans is a valuation allowance estimated at each balance sheet date in accordance with US GAAP that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The Company estimates the ACL on loans based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL. Expected credit losses are reflected in the allowance for credit losses through a charge to credit loss expense. When the Company deems all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible; however, generally speaking, an asset will be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the ACL when received. The Company measures expected credit losses of financial assets on a collective (pool) basis, when the financial assets share similar risk characteristics. Depending on the nature of the pool of financial assets with similar risk characteristics, the Company uses a discounted cash flow (“DCF”) method or a loss-rate method to estimate expected credit losses. The Company’s methodologies for estimating the ACL consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. The Company’s methodologies revert back to historical loss information on a straight-line basis over eight quarters when it can no longer develop reasonable and supportable forecasts. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: Commercial Real Estate — This category of loans consists of the following loan types: Non-farm Non-residential — This category includes real estate loans for a variety of commercial property types and purposes, including owner occupied commercial real estate loans primarily secured by commercial office or industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. Repayment terms vary considerably, interest rates are fixed or variable, and are structured for full, partial, or no amortization of principal. This category also includes investment real estate loans that are primarily secured by office and industrial buildings, warehouses, small retail shopping centers and various special purpose properties. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Multi-family residential — Investment real estate loans are primarily secured by non-owner occupied apartment or multifamily residential buildings. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Construction, land development, land —This category of loans consists of loans to finance the ground up construction, improvement and/or carrying for sale after the completion of construction of owner occupied and non-owner occupied residential and commercial properties, and loans secured by raw or improved land. The repayment of construction loans is generally dependent upon the successful completion of the improvements by the builder for the end user, or sale of the property to a third-party. Repayment of land secured loans are dependent upon the successful development and sale of the property, the sale of the land as is, or the outside cash flow of the owners to support the retirement of the debt. 1-4 family residential — This category of loans includes both first and junior liens on residential real estate. Home equity revolving lines of credit and home equity term loans are included in this group of loans. Farmland — These loans are principally loans to purchase farmland. Commercial — Commercial loans are loans for commercial, corporate and business purposes. The Company’s commercial business loan portfolio is comprised of loans for a variety of purposes and across a variety of industries. These loans include general commercial and industrial loans, loans to purchase capital equipment, agriculture operating loans and other business loans for working capital and operational purposes. Commercial loans are generally secured by accounts receivable, inventory and other business assets. Also included in commercial loans are our Paycheck Protection ("PPP") loans originated during 2020 and 2021. Equipment — Equipment finance loans are commercial loans primarily secured by new or used revenue producing, essential-use equipment from major manufacturers that is movable, may be used in more than one type of business, and generally has broad resale markets. Core markets include transportation, construction, and waste. Loan terms do not exceed the economic life of the equipment and typically are 60 months or less. Asset-based Lending — These loans are originated to borrowers to support general working capital needs. The asset-based loan structure involves advances of loan proceeds against a borrowing base which typically consists of accounts receivable, identified readily marketable inventory, or other collateral of the borrower. The maximum amount a customer may borrow at any time is fixed as a percentage of the borrowing base outstanding. Liquid Credit — Broadly syndicated leveraged loans secured by a variety of collateral types. Factored Receivables — The Company operates as a factor by purchasing accounts receivable from its clients, then collecting the receivable from the account debtor. The Company’s smaller factoring relationships are typically structured as “non-recourse” relationships (i.e., the Company retains the credit risk associated with the ability of the account debtor on a purchased invoice to ultimately make payment) and the Company’s larger factoring relationships are typically structured as “recourse” relationships (i.e., the Company’s client agrees to repurchase any invoices for which payment is not ultimately received from the account debtor). Advances initially made to the client to acquire the receivables are typically at a discount to the invoice value. The discount balance is held in client reserves, net of the Company’s compensation. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits. Consumer — Loans used for personal use, typically on an unsecured basis, and client overdrafts. Mortgage Warehouse — Mortgage Warehouse facilities are provided to unaffiliated mortgage origination companies and are collateralized by 1-4 family residential loans. The originator closes new mortgage loans with the intent to sell these loans to third-party investors for a profit. The Company provides funding to the mortgage companies for the period between the origination and their sale of the loan. The Company has a policy that requires that it separately validate that each residential mortgage loan was underwritten consistent with the underwriting requirements of the final investor or market standards prior to advancing funds. The Company is repaid with the proceeds received from sale of the mortgage loan to the final investor. Discounted Cash Flow Method The Company uses the discounted cash flow method to estimate expected credit losses for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit), and consumer loan pools. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery tends to be less sensitive than other assumptions and such assumptions are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes and forecasts national unemployment as a loss driver. Management also utilizes and forecasts either one-year percentage change in national retail sales, one-year percentage change in the national home price index, or one-year percentage change in national gross domestic product 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. For all DCF models, management 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. Management 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 management when developing the forecast metrics. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An ACL is established for the difference between the instrument’s NPV and amortized cost basis. Loss-Rate Method The Company uses a loss-rate method to estimate expected credit losses for the farmland, liquid credit, premium finance, 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 management'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. Collateral Dependent Financial Assets Loans the Company has identified as collateral dependent that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets, the ACL is measured based on the difference between the fair value of the collateral plus other sources of repayment and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. 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 unless the Company has identified an expected troubled debt restructuring. A loan that has been modified or renewed is considered a troubled debt restructuring (“TDR”) when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed non-performing TDRs are evaluated individually to determine the required ACL. TDRs performing in accordance with their modified contractual terms for a reasonable period of time may be included in the Company’s existing pools based on the underlying risk characteristics of the loan to measure the ACL. Paycheck Protection Program ("PPP") With the passage of the PPP, the Company has actively participated in assisting its customers with applications for loans through the program. Loans funded through the PPP program are fully guaranteed by the U.S. government subject to certain representations and warranties. This guarantee exists at the inception of the loans and throughout the lives of the loans and was not entered into separately and apart from the loans. ASC 326 requires credit enhancements that mitigate credit losses, such as the U.S. government guarantee on PPP loans, to be considered in estimating credit losses. The guarantee is considered “embedded” and, therefore, is considered when estimating credit loss on the PPP loans. Given that the loans are fully guaranteed by the U.S. government and absent any specific loss information on any of our PPP loans, the Company did not carry an ACL on its PPP loans at December 31, 2022 and 2021. The balance of PPP loans at December 31, 2022 was insignificant. Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, commitments to purchase broadly syndicated loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to credit loss expense in the Company’s consolidated statements of income. The ACL on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in other liabilities on the Company’s consolidated balance sheets. Federal Home Loan Bank (“FHLB”) Stock The Company is a member of the FHLB system. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, is restricted as to redemption, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Premises and Equipment Land is carried at cost. Depreciable assets are stated at cost less accumulated depreciation. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Buildings and related components are generally depreciated using the straight-line method with useful lives ranging from five to forty years. Automobiles are depreciated using the straight-line method with five year useful lives, and the aircraft is depreciated using an accelerated method with a twenty year useful life. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from three to ten years. The Company leases certain properties and equipment under operating leases. The Company recognizes a liability to make lease payments, the “lease liability”, and an asset representing the right to use the underlying asset during the lease term, the “right-of-use asset”. The lease liability is measured at the present value of the remaining lease payments, discounted at the Company’s incremental borrowing rate. The right-of-use asset is measured at the amount of the lease liability adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the right-of-use-asset. Operating lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the lease liability, and any impairment of the right-of-use asset. Certain of the Company’s leases contain options to renew the lease; however, these renewal options are not included in the calculation of the lease liabilities as they are not reasonably certain to be exercised. The Company’s leases do not contain residual value guarantees or material variable lease payments. The Company does not have any material restrictions or covenants imposed by leases that would impact the Company’s ability to pay dividends or cause the Company to incur additional financial obligations. The Company has made an accounting policy election to not apply the recognition requirements to short-term leases. The Company has also elected to use the practical expedient to make an accounting policy election for property leases to include both lease and non-lease components as a single component and account for it as a lease. The Company’s leases are not complex; therefore there were no significant assumptions or judgements made as part of the determination of whether the contracts contained a lease, the allocation of consideration in the contracts between lease and non-lease components, and the determination of the discount rates for the leases. Foreclosed Assets Assets acquired through loan foreclosure are initially recorded at fair value less costs to sell, establishing a new cost basis. Any write-down in the carrying value of a property at the time of acquisition is charged-off to the allowance for loan and lease losses. After foreclosure, foreclosed assets are carried at the lower of the recorded investment in the asset or the fair value less costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Goodwill Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. The Company evaluates goodwill for impairment on an annual basis or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount. The Company’s annual goodwill impairment testing date is October 1. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining the need to perform the test for goodwill impairment (the qualitative method). If the qualitative method cannot be used or if it determines, based on the qualitative method, that the fair value is more likely than not less than the carrying amount, the Company compares the estimated fair value of a reporting unit with its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, the Company will record an impairment charge based on that difference. Our annual goodwill impairment test did not identify any goodwill impairment for the years ended December 31, 2022, 2021 and 2020. Identifiable Intangible Assets Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. The Company's intangible assets primarily relate to core deposits, customer relationships and software. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value with a charge to amortization of intangible assets. Intangible assets with indefinite lives are not significant. Software Developed for Internal Use The Company capitalizes internal and external costs related to internal-use software during the application development stage, including consulting costs and compensation expenses related to employees who devote time to the development of the projects. The Company records capitalized software development costs in other assets in the Consolidated Balance Sheets. Costs incurred in preliminary stages of development activities and post implementation activities are expensed in the period incurred. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Once the software is substantially complete and ready for its intended use, capitalization ceases and the asset is amortized straight line over its estimated useful life, which ranges between three and five years. Bank Owned Life Insurance The Company has purchased life insurance policies on certain key employees. The purchase of these life insurance policies allows the Company to use tax-advantaged rates of return. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Derivative Financial Instruments The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. The Company did not have any derivatives at December 31, 2022. At December 31, 2021, the Company had one cash flow hedge position and no fair value or foreign currency hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. Unrealized gains or losses are reported as other comprehensive income or loss. To qualify for the use of hedge accounting, a derivative must be effective at inception and expected to be continuously effective in offsetting the risk being hedged. A statistical regression analysis is performed at inception and at each reporting period thereafter to evaluate hedge effectiveness. In accordance with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Income Taxes The Company files a consolidated tax return with its subsidiaries and is taxed as a C corporation. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and penalties related to income tax matters in income tax expense. Fair Values of Financial Instruments In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that may use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and/or the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Changes in assumptions or in market conditions could significantly affect these estimates. In the ordinary course of business, the Company generally does not sell or transfer non-impaired loans and deposits. As such, the disclosures that present the December 31, 2022 and 2021 estimated fair value for non-impaired loans and deposits are judgmental and may not represent amounts to be received if the Company were to sell or transfer such items. Revenue from Contracts with Customers The 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. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. 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. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers. The Company presents disaggregated revenue from contracts with customers in the consolidated statements of income. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. 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. These fees totaled $13,694,000, $7,451,000, and $127,000 for the years ended December 31, 2022, 2021, and 2020, respectively. These fees are generally variable and 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 obligation. •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. 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 considered 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. Included in noninterest expense of the Banking segment is the majority of salaries and benefits expense for our executive leadership team and other selling, general, and administrative shared services costs, including a significant amount of information technology expense. 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 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 both invoices where we offer a carrier a quick pay 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 and from 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. The corporate segment includes holding company financing and investment activities and management and administrative expenses to support the overall operations of the Company. Prior to June 30, 2021, management determined that the Company had three reportable segments consisting of Banking, Factoring, and Corporate, and the Banking segment included the operations of TBK Bank and TriumphPay. On June 1, 2021, TriumphPay acquired HubTran, Inc., a cloud-based provider of automation software for the trucking industry’s back office. See Note 2 – Acquisitions and Divestitures for further disclosures regarding the acquisition of HubTran. The acquisition of HubTran allows TriumphPay to create a payments network for trucking. TriumphPay already offered tools and services to provide automation, mitigate fraud, and create back-office efficiency. Through the acquisition of HubTran, TriumphPay created additional value through building upon its presentment, audit, and payment capabilities for shippers, third party logistics companies (i.e., freight brokers) and their carriers, and factors. The acquisition of HubTran was an inflection point in the operations of TriumphPay as the TriumphPay strategy has shifted from a capital-intensive on-balance sheet product with a focus on interest income to a payments network for the trucking industry with a focus on fee revenue. In terms of total revenue, operating income (loss), and total assets, TriumphPay had historically been quantitatively immaterial; however, given the shift in strategy brought on by the acquisition of HubTran as well as management and chief operating decision maker focus on TriumphPay operations, management believes disclosing TriumphPay's operations through the Payments segment is qualitatively useful for readers of these financial statements. This change also brings the Company's reportable segments in line with its reporting units used for goodwill impairment evaluation. Prior to the acquisition of HubTran, the Payments reporting unit carried no goodwill. Prior period business segment disclosures have been revised as appropriate to reflect the prior period change in reportable segments. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income includes unrealized gains and losses on debt securities available for sale and cash flow hedges, net of taxes, which are also recognized as a separate component of equity. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe such matters exist that will have a material effect on the financial statements. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be relinquished when (i) the assets have been isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the transferee to return specific assets. Stock Based Compensation Compensation cost is recognized for stock based payment awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, a Monte Carlo simulation is utilized to estimate the fair value of market based performance stock units, and the market price of the Company’s common stock at the date of grant is used for restricted stock awards, restricted stock units, and performance based performance stock units. Compensation cost is recognized over the required service period, generally defined as the vesting period. The Company recognizes forfeitures of nonvested awards as they occur. Earnings Per Common Share Basic earnings per common share is net income less dividends on preferred stock divided by the weighted average number of common shares outstanding during the period excluding nonvested restricted stock awards. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock warrants, restricted stock, stock options, and preferred shares that are convertible to common shares. Advertising Costs Advertising costs are expensed as incurred. Adoption of New Accounting Standards On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. Section 4013 of the CARES Act, “Temporary Relief From Troubled Debt Restructurings,” provides banks the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (“TDR”) for a limited period of time to account for the effects of COVID-19. To qualify for Section 4013 of the CARES Act, borrowers must have been current at December 31, 2019. All modifications are eligible so long as they are executed between March 1, 2020 and the earlier of (i) December 31, 2020, or (ii) the 60th day after the end of the COVID-19 national emergency declared by the President of the U.S. Multiple modifications of the same credits are allowed and there is no cap on the duration of the modification. On December 21, 2020, certain provisions of the CARES Act, including the temporary suspension of certain requirements related to TDRs, were extended through December 31, 2021. See Note 4 – Loans and Allowance for Credit Losses for disclosure of the impact to date. In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by the Coronavirus. The interagency statement was effective immediately and impacted accounting for loan modifications. Under Accounting Standards Codification 310-40, “Receivables – Troubled Debt Restructurings by Creditors,” (“ASC 310-40”), a restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grands a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. Almost all of the Company’s modifications fall under Section 4013 of the CARES Act and thus, the interagency statement has had very little impact on the Company to date. In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides temporary optional relief for contracts modified as a result of reference rate reform meeting certain modification criteria, generally allowing an entity to account for contract modifications occurring due to reference rate reform as an event that does not require contract remeasurement or reassessment of a previous accounting determination at the modification date. The guidance also includes temporary optional expedients intended to provide relief from various hedge effectiveness requirements for hedging relationships affected by reference rate reform, provided certain criteria are met, and allows a one-time election to sell or transfer to either available-for-sale or trading any held-to-maturity ("HTM") debt securities that refer to an interest rate affected by reference rate reform and were classified as HTM prior to January 1, 2020. Additionally, in January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which provided additional clarification that certain optional expedients and exceptions noted above apply to derivative instruments that use an interest rate for margining, discounting or contract price alignment that is modified as a result of reference rate reform. This guidance was effective upon issuance and can be applied prospectively, with certain exceptions, through December 31, 2022. The adoption of this ASU did not significantly impact our consolidated financial statements. In November 2020, federal and state banking regulators issued the “Interagency Policy Statement on Reference Rates for Loans" to reiterate that a specific replacement rate for loans impacted by reference rate reform has not been endorsed and entities may utilize any replacement reference rate determined to be appropriate based on its funding model and customer needs. As discussed in the “Interagency Policy Statement on Reference Rates for Loans," fallback language should be included in lending contracts to provide for use of a robust fallback rate if the initial reference rate is discontinued. Additionally, federal banking regulators issued the "Interagency Statement on LIBOR Transition" acknowledging that the administrator of USD London Interbank Offered Rate (LIBOR) benchmarks has announced it will consult on its intention to cease the publication of the one week and two month USD LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining USD LIBOR settings immediately following the LIBOR publication on June 30, 2023. On March 5, 2021, the administrator of USD LIBOR benchmarks confirmed these dates and will cease publication of USD LIBOR tenors accordingly. As discussed in the "Interagency Statement on LIBOR Transition," regulators encouraged banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, in order to facilitate an orderly, safe and sound LIBOR transition. Reference rate reform did not significantly impact our consolidated financial statements. Newly Issued, But Not Yet Effective 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". ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2022-02 is not expected to have a material impact on the consolidated financial statements and related disclosures related to modifications made to troubled borrowers will be updated upon adoption.

Acquisitions and Divestitures

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions and Divestitures

ACQUISITIONS AND DIVESTITURES

Equipment Loan Sale

During the year ended December 31, 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 17 – 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 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 agreement contains a revenue share provision 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. As this transaction qualified as a sale of a group of entire financial assets, management recognized, as proceeds, the assets obtained and liabilities incurred. Thus, management recorded a $5,210,000 asset for the contractual right to receive future cash flows from a third party measured at fair value as of the date of close. This is a financial asset for which management elected the fair value option. It is recorded in other assets in the Company's Consolidated Balance Sheet and is marked to fair value through earnings at each reporting period.

The September 6, 2022 agreement contains a revenue share provision that entitles the Company to an amount equal to a range of fifteen to twenty percent, depending on client, of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. As this transaction qualified as a sale of a group of entire financial assets, management recognized, as proceeds, the assets obtained and liabilities incurred. Thus, management recorded a $1,027,000 asset for the contractual right to receive future cash flows from a third party measured at fair value as of the date of close. This is a financial asset for which management elected the fair value option. It is recorded in other assets in the Company's Consolidated Balance Sheet and will be 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 17 – 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 and were allocated to the Factoring segment.

HubTran Inc.

On June 1, 2021, the Company, through TriumphPay, a division of the Company's wholly-owned subsidiary TBK Bank, SSB, acquired HubTran, Inc. ("HubTran"), a cloud-based provider of automation software for the trucking industry's back-office.

A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows:


(Dollars in thousands)	Initial Values		Measurement Period Adjustments		Adjusted Values
Assets acquired:
Cash	$	170	$	—	$	170
Intangible assets - capitalized software	16,932		—		16,932
Intangible assets - customer relationship	10,360		—		10,360
Other assets	1,546		24		1,570
	29,008		24		29,032
Liabilities assumed:
Deferred income taxes	4,703		(3,248)		1,455
Other liabilities	906		16		922
	5,609		(3,232)		2,377
Fair value of net assets acquired	$	23,399	$	3,256	$	26,655
Consideration:
Cash paid	$	97,096	$	—	$	97,096
Goodwill	$	73,697	$	(3,256)	$	70,441

The Company has recognized goodwill of $70,441,000, which included measurement period adjustments related to customary settlement adjustments and the finalization of the HubTran stub period tax return and its impact on the acquired deferred tax liability. Goodwill was calculated as the excess of the fair value of consideration exchanged as compared to the fair value of identifiable net assets acquired and was allocated to the Company’s Payments segment. The goodwill in this acquisition resulted from expected synergies and progress in the development of a fully integrated open loop payments network for the transportation industry. The goodwill will not be deducted for tax purposes.

The intangible assets recognized include a capitalized software intangible asset with an acquisition date fair value of $16,932,000 which will be amortized on a straight-line basis over its four year estimated useful life and customer relationship intangible assets with a total acquisition date fair value of $10,360,000 which will be amortized utilizing an accelerated method over their eleven year estimated useful lives.

Revenue and earnings of HubTran since the acquisition date have not been disclosed as the acquired company was merged into the Company and separate financial information is not readily available.

Expenses related to the acquisition, including professional fees and other transaction costs, totaling $2,992,000 were recorded in noninterest expense in the consolidated statements of income during the year ended December 31, 2021.

Transport Financial Solutions

On July 8, 2020, the Company, through its wholly-owned subsidiary Triumph Financial Services, LLC, then known as Advance Business Capital LLC (“ABC”), acquired the transportation factoring assets and certain personnel (the “TFS Acquisition”) of Transport Financial Solutions (“TFS”), a wholly owned subsidiary of Covenant Logistics Group, Inc. ("CVLG"), in exchange for cash consideration of $108,375,000, 630,268 shares of the Company’s common stock valued at approximately $13,942,000, and contingent consideration of up to approximately $9,900,000 to be paid in cash following the twelve-month period ending July 31, 2021.

Subsequent to the closing of the TFS Acquisition, the Company identified that approximately $62,200,000 of the assets acquired at closing were advances against future payments to be made to three large clients (and their affiliated entities) of TFS pursuant to long-term contractual arrangements between the obligor on such contracts and such clients (and their affiliated entities) for services that had not yet been performed.

On September 23, 2020, the Company and ABC entered into an Account Management Agreement, Amendment to Purchase Agreement and Mutual Release (the “Agreement”) with CVLG and Covenant Transport Solutions, LLC, a wholly owned subsidiary of CVLG (“CTS” and, together with CVLG, "Covenant"). Pursuant to the Agreement, the parties agreed to certain amendments to that certain Accounts Receivable Purchase Agreement (the “ARPA”), dated as of July 8, 2020, by and among ABC, as buyer, CTS, as seller, and the Company, as buyer indirect parent. Such amendments include:

•Return of the portion of the purchase price paid under the ARPA consisting of 630,268 shares of Company common stock, which was accomplished through the sale of such shares by Covenant pursuant to the terms of the Agreement and the surrender of the cash proceeds of such sale (net of brokerage or underwriting fees and commissions) to the Company;

•Elimination of the earn-out consideration potentially payable to CTS under the ARPA; and

•Modification of the indemnity provisions under the ARPA that eliminated the existing indemnifications for breaches of representations and warranties and replaced such with a newly established indemnification by Covenant in the event ABC incurs losses related to the $62,200,000 in over-formula advances made to specified clients identified in the Agreement (the “Over-Formula Advance Portfolio”). Under the terms of the new indemnification arrangement, Covenant is responsible for and will indemnify ABC for 100% of the first $30,000,000 of any losses incurred by ABC related to the Over-Formula Advance Portfolio, and for 50% of the next $30,000,000 of any losses incurred by ABC, for total indemnification by Covenant of $45,000,000.

Covenant’s indemnification obligations under the Agreement are secured by a pledge of equipment collateral by Covenant with an estimated net orderly liquidation value of $60,000,000 (the “Equipment Collateral”). The Company’s wholly-owned bank subsidiary, TBK Bank, SSB, has provided Covenant with a $45,000,000 line of credit, also secured by the Equipment Collateral, the proceeds of which may be drawn to satisfy Covenant’s indemnification obligations under the Agreement.

Pursuant to the Agreement, the Company and Covenant agreed to certain terms related to the management of the Over-Formula Advance Portfolio, and the terms by which Covenant may provide assistance to maximize recovery on the Over-Formula Advance Portfolio.

Pursuant to the Agreement, the Company and Covenant provided mutual releases to each other related to any and all claims related to the transactions contemplated by the ARPA or the Over-Formula Advance Portfolio.

The measurement period for this transaction remained open at the time the Agreement was executed and the Company has determined that there is a clear and direct link between the Agreement and the ARPA. Therefore, the terms of the Agreement have been incorporated into the Company's purchase accounting which has resulted in the elimination of the contingent consideration component of the ARPA, the recognition of a receivable due from Covenant as part of the consideration for the transaction, and an indemnification asset to reflect the modification of Covenant's indemnification obligations.

A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows:


(Dollars in thousands)	Initial Values Recorded at Acquisition Date		Measurement Period Adjustments		Adjusted Values
Assets acquired:
Factored receivables	$	107,524	$	—	$	107,524
Allowance for credit losses	(37,415)		—		(37,415)
Factored receivables, net of ACL	70,109		—		70,109
Intangible assets	3,500		—		3,500
Indemnification asset	30,959		—		30,959
Deferred income taxes	1,448		(59)		1,389
	106,016		(59)		105,957
Liabilities assumed:
Deposits	5,361		—		5,361
	5,361		—		5,361
Fair value of net assets acquired	$	100,655	$	(59)	$	100,596
Consideration:
Cash paid	$	108,375	$	—	$	108,375
Stock consideration	13,942		—		13,942
Receivable due from seller subsequent to liquidation of stock consideration	(17,196)		—		(17,196)
Total consideration	$	105,121	$	—	$	105,121
Goodwill	$	4,466	$	59	$	4,525

The Company has recognized goodwill of $4,525,000, which included measurement period adjustments related to the finalization of the tax basis of Covenant’s customer intangibles and its impact on the deferred tax liability associated with these intangibles. Goodwill was calculated as the excess of the fair value of consideration exchanged as compared to the fair value of identifiable net assets acquired and was allocated to the Company’s Factoring segment. The goodwill in this acquisition resulted from expected synergies and expansion in the factoring market. The goodwill will not be deducted for tax purposes.

Consideration included a receivable due from Covenant subsequent to liquidation of the stock consideration with an acquisition date fair value of $17,196,000. The fair value of the receivable due from Covenant for initial purchase accounting measurement purposes was based on the Company's stock price on the date of the Agreement, less an estimate of broker commissions and discounts. During the year ended December 31, 2020, the entirety of the acquired stock was sold by Covenant and Covenant delivered net proceeds of $28,064,000. The Company recognized $10,868,000 of other noninterest income during the year ended December 31, 2020, measured as the difference between the initial purchase accounting measurement and the amount of net proceeds delivered to the Company upon liquidation.

The intangible assets recognized include a customer relationship intangible asset with an acquisition date fair value of $3,500,000 which has been amortized utilizing an accelerated method over its eight year estimated useful life.

The indemnification asset was measured separately from the related covered portfolio. It is not contractually embedded in the covered portfolio nor is it transferable with the covered portfolio should the Company choose to dispose of the portfolio or a portion of the portfolio. The indemnification asset at the time of the TFS Acquisition had a fair value of $30,959,000, measured 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. These cash flows were discounted at a rate to reflect the uncertainty of the timing and receipt of the payments from Covenant. The amount ultimately collected for this asset will be dependent upon the performance of the underlying covered portfolio, the passage of time, and Covenant's willingness and ability to make necessary payments. The terms of the Agreement are such that indemnification has no expiration date and the Company will continue to carry the indemnification asset until ultimate resolution of the covered portfolio. The Company has elected the fair value option for the indemnification asset. 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 fair value of the indemnification asset was $3,896,000 and $4,786,000 at December 31, 2022 and 2021.

During the year ended December 31, 2021, new adverse developments with the largest of the three Over-Formula Advance clients caused the Company to charge-off the entire Over-Formula Advance amount due from that client. This resulted in a net charge-off of $41,265,000; however, this net charge-off had no impact on credit loss expense for the year ended December 31, 2021 as the entire amount had been reserved in a prior period. In accordance with the Agreement reached with Covenant, Covenant reimbursed the Company for $35,633,000 of this charge-off by drawing on its secured line of credit. Given separate developments with the other two Over-Formula Advance clients, the Company reserved an additional $2,844,000 reflected in credit loss expense for the year ended December 31, 2021. The increase in required ACL as well as accretion of most of the fair value discount on the indemnification asset held at December 31, 2020 resulted in a $4,194,000 gain on the indemnification asset which was recorded through non-interest income during the year ended December 31, 2021. Covenant has subsequently paid down its secured line of credit with TBK in its entirety and carried no outstanding balance at December 31, 2022 or 2021. At December 31, 2022, Covenant had remaining availability of $9,361,000 on its TBK line of credit available to cover the gross indemnification balance of up to $4,101,000.

During the year ended December 31, 2022, there were no material changes in the underlying credit quality of the remaining two Over-Formula Advance clients. As such, there were no charge-offs related to these balances. Both of the remaining Over-Formula Advance clients made payments totaling $1,874,000 during the year ended December 31, 2022, which resulted in a dollar-for-dollar reduction in the required ACL as well as a write-off of a portion of the corresponding indemnification asset. The impact of the payment to net income available to common stockholders for the year ended December 31, 2022 was not significant.

Revenue and earnings of TFS since the acquisition date have not been disclosed as the acquired company was merged into the Company and separate financial information is not readily available.

Expenses related to the acquisition, including professional fees and other transaction costs, totaling $827,000 were recorded in noninterest expense in the consolidated statements of income during the year ended December 31, 2020.

Triumph Premium Finance

On April 20, 2020, the Company entered into an agreement to sell the assets (the “Disposal Group”) of Triumph Premium Finance (“TPF”) and exit its premium finance line of business. The sale closed on June 30, 2020.

A summary of the carrying amount of the assets in the Disposal Group and the gain on sale is as follows:


(Dollars in thousands)
Carrying amount of assets in the disposal group:
Loans	$	84,504
Premises and equipment, net	45
Other assets	11
	84,560
Carrying amount of liabilities in the disposal group:
Other liabilities	479
Total carrying amount	$	84,081
Total consideration received	94,531
Gain on sale of division	10,450
Transaction costs	692
Gain on sale of division, net of transaction costs	$	9,758

The Disposal Group was included in the Banking segment, and the loans in the Disposal Group were previously included in the commercial loan portfolio.

Securities

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Securities

SECURITIES

Equity Securities with Readily Determinable Fair Values

The Company held equity securities with fair values of $5,191,000 and $5,504,000 at December 31, 2022 and 2021, respectively. The gross realized and unrealized gains (losses) recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:


(Dollars in thousands)	2022		2021		2020
Unrealized gains (losses) on equity securities still held at the reporting date	$	(313)	$	(322)	$	389
Realized gains (losses) on equity securities sold during the period	—		—		—
	$	(313)	$	(322)	$	389

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)	December 31, 2022		December 31, 2021
Equity Securities without readily determinable fair value, at cost	$	39,019	$	14,671
Upward adjustments based on observable price changes, cumulative	10,163		—
Equity Securities without readily determinable fair value, carrying value	$	49,182	$	14,671

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, 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:


	Year Ended December 31,
(Dollars in thousands)	2022		2021		2020
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	$	—	$	—

During the year ended December 31, 2022, the Company adjusted the fair value of an equity security without readily determinable fair value upwards due to an orderly and observable transaction for an identical investment. For further information on this transaction, see Note 8 – Equity Method Investment.

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 Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
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 Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
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


(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
December 31, 2021
Available for sale securities:
Mortgage-backed securities, residential	$	36,885	$	720	$	(156)	$	—	$	37,449
Asset-backed securities	6,763		2		(1)		—		6,764
State and municipal	26,309		516		—		—		26,825
CLO Securities	103,579		3,109		(54)		—		106,634
Corporate bonds	1,992		64		—		—		2,056
SBA pooled securities	2,536		162		—		—		2,698
Total available for sale securities	$	178,064	$	4,573	$	(211)	$	—	$	182,426


(Dollars in thousands)	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
December 31, 2021
Held to maturity securities:
CLO securities	$	7,029	$	—	$	(1,582)	$	5,447
Allowance for credit losses	(2,082)
Total held to maturity securities, net of ACL	$	4,947

The amortized cost and estimated fair value of debt securities at December 31, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers 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 Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	1,801	$	1,798	$	—	$	—
Due from one year to five years	2,010		1,982		—		—
Due from five years to ten years	53,148		51,897		6,521		5,476
Due after ten years	142,932		140,035		—		—
	199,891		195,712		6,521		5,476
Mortgage-backed securities, residential	55,329		50,633		—		—
Asset-backed securities	6,389		6,331		—		—
SBA pooled securities	1,910		1,828		—		—
	$	263,519	$	254,504	$	6,521	$	5,476

Proceeds from sales of debt securities and the associated gross gains and losses are as follows:


(Dollars in thousands)	2022		2021		2020
Proceeds	$	40,163	$	—	$	70,198
Gross gains	2,514		—		3,233
Gross losses	—		—		(140)
Net gains and losses from calls of securities	(2)		5		133

Debt securities with a carrying amount of approximately $93,813,000 and $72,805,000 at December 31, 2022 and 2021, 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 $2,593,000 and $802,000 at December 31, 2022 and 2021, respectively, and was included in other assets in the Consolidated Balance Sheets.

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 Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
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)
Total available for sale securities	$	193,142	$	(5,201)	$	40,261	$	(4,241)	$	233,403	$	(9,442)


	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2021
Available for sale securities:
Mortgage-backed securities, residential	20,386		(155)		6		(1)		20,392		(156)
Asset-backed securities	37		—		4,999		(1)		5,036		(1)
State and municipal	30		—		—		—		30		—
CLO Securities	22,707		(54)		—		—		22,707		(54)
Corporate bonds	—		—		—		—		—		—
SBA pooled securities	—		—		—		—		—		—
Total available for sale securities	$	43,160	$	(209)	$	5,005	$	(2)	$	48,165	$	(211)

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 December 31, 2022, the Company had 141 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 December 31, 2022, 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 no losses have been recognized in the Company’s consolidated statements of income.

The following table presents the activity in the allowance for credit losses for held to maturity debt securities:


(Dollars in thousands)	Year Ended December 31,
Held to Maturity CLO Securities	2022		2021		2020
Allowance for credit losses:
Beginning balance	$	2,082	$	2,026	$	—
Impact of adopting ASC 326	—		—		126
Credit loss expense (benefit)	362		56		1,900
Allowance for credit losses ending balance	$	2,444	$	2,082	$	2,026

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 December 31, 2022 and 2021, 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. As of December 31, 2022, $5,051,000 of the Company’s held to maturity securities were classified as nonaccrual.

Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2022

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)	December 31, 2022		December 31, 2021
1-4 family residential	$	—	$	712
Commercial	5,641		6,618
Total loans held for sale	$	5,641	$	7,330

Loans Held for Investment and Allowance for Credit Losses

The following table presents the amortized cost and unpaid principal for loans held for investment:


	December 31, 2022						December 31, 2021
(Dollars in thousands)	Amortized Cost		Unpaid Principal		Difference		Amortized Cost		Unpaid Principal		Difference
Commercial real estate	$	678,144	$	679,239	$	(1,095)	$	632,775	$	634,319	$	(1,544)
Construction, land development, land	90,976		91,147		(171)		123,464		123,643		(179)
1-4 family residential properties	125,981		126,185		(204)		123,115		123,443		(328)
Farmland	68,934		69,185		(251)		77,394		77,905		(511)
Commercial	1,251,110		1,262,493		(11,383)		1,430,429		1,440,542		(10,113)
Factored receivables	1,237,449		1,241,032		(3,583)		1,699,537		1,703,936		(4,399)
Consumer	8,868		8,871		(3)		10,885		10,883		2
Mortgage warehouse	658,829		658,829		—		769,973		769,973		—
Total	4,120,291		$	4,136,981	$	(16,690)	4,867,572		$	4,884,644	$	(17,072)
Allowance for credit losses	(42,807)						(42,213)
	$	4,077,484					$	4,825,359

The difference between the amortized cost and unpaid principal balance is due to (1) premiums and discounts associated with acquired loans totaling $13,383,000 and $11,723,000 at December 31, 2022 and 2021, respectively, and (2) net deferred origination and factoring fees totaling $3,307,000 and $5,349,000 at December 31, 2022 and 2021, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $19,279,000 and $14,513,000 at December 31, 2022 and 2021, respectively, and was included in other assets in the Consolidated Balance Sheets.

As of December 31, 2022, most of the Company’s non-factoring business activity is with customers located within certain states. The states of Texas (23%), Colorado (11%), Illinois (11%), and Iowa (6%), make up 51% of the Company’s gross loans, excluding factored receivables. Therefore, the Company’s exposure to credit risk is affected by changes in the economies in these states. At December 31, 2021, the states of Texas (21%), Colorado (15%), Illinois (15%), and Iowa (6%) made up 57% of the Company’s gross loans, excluding factored receivables.

A majority (96%) of the Company’s factored receivables, representing approximately 29% of the total loan portfolio as of December 31, 2022, are transportation receivables. At December 31, 2021, 91% of our factored receivables, representing approximately 32% of our total loan portfolio, were transportation receivables.

At December 31, 2022 and 2021, the Company had $249,288,000 and $254,970,000, respectively, of customer reserves associated with factored receivables which are 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 and are periodically released to or withdrawn by customers. Customer reserves are reported as deposits in the consolidated balance sheets.

At December 31, 2022 and 2021 the balance of the Over-Formula Advance Portfolio included in factored receivables was $8,202,000 and $10,077,000, respectively. These amounts were fully reserved at both dates.

As of December 31, 2022 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 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 December 31, 2022.

Loans with carrying amounts of $1,356,922,000 and $1,733,917,000 at December 31, 2022 and 2021, 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 unless the Company has identified an expected troubled debt restructuring. The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows:


(Dollars in thousands)	Beginning Balance		Credit Loss Expense (Benefit)		Charge-offs		Recoveries		Ending Balance
Year ended December 31, 2022
Commercial real estate	$	3,961	$	546	$	(108)	$	60	$	4,459
Construction, land development, land	827		323		—		5		1,155
1-4 family residential properties	468		363		—		7		838
Farmland	562		(79)		—		—		483
Commercial	14,485		2,713		(2,205)		925		15,918
Factored receivables	20,915		3,045		(5,853)		1,014		19,121
Consumer	226		239		(435)		145		175
Mortgage warehouse	769		(111)		—		—		658
	$	42,213	$	7,039	$	(8,601)	$	2,156	$	42,807


(Dollars in thousands)	Beginning Balance		Credit Loss Expense (Benefit)		Charge-offs		Recoveries		Ending Balance
Year ended December 31, 2021
Commercial real estate	$	10,182	$	(6,214)	$	(17)	$	10	$	3,961
Construction, land development, land	3,418		(2,584)		(12)		5		827
1-4 family residential properties	1,225		(849)		(34)		126		468
Farmland	832		(270)		—		—		562
Commercial	22,040		(7,725)		(481)		651		14,485
Factored receivables	56,463		10,038		(46,043)		457		20,915
Consumer	542		(92)		(359)		135		226
Mortgage warehouse	1,037		(268)		—		—		769
	$	95,739	$	(7,964)	$	(46,946)	$	1,384	$	42,213


(Dollars in thousands)	Beginning Balance		Provision		Charge-offs		Recoveries		Initial ACL on Loans Purchased with Credit Deterioration		Reclassification To Held For Sale		Impact of Adopting ASC 326		Ending Balance
Year ended December 31, 2020
Commercial real estate	$	5,353	$	3,607	$	(320)	$	170	$	—	$	—	$	1,372	$	10,182
Construction, land development, land	1,382		2,005		(23)		241		—		—		(187)		3,418
1-4 family residential properties	308		378		(27)		53		—		—		513		1,225
Farmland	670		(355)		—		80		—		—		437		832
Commercial	12,566		11,336		(2,344)		1,115		—		(449)		(184)		22,040
Factored receivables	7,657		16,079		(3,201)		143		37,415		—		(1,630)		56,463
Consumer	488		562		(573)		117		—		—		(52)		542
Mortgage warehouse	668		369		—		—		—		—		—		1,037
	$	29,092	$	33,981	$	(6,488)	$	1,919	$	37,415	$	(449)	$	269	$	95,739

The increase in required ACL during the year ended December 31, 2022 is a function of net charge-offs of $6,445,000 and credit loss expense of $7,039,000.

The decrease in required ACL during the year ended December 31, 2021 is a function of net charge-offs of $45,562,000 and a benefit to credit loss expense of $7,964,000. Net charge-offs during the year reflect the net charge-off of $41,265,000 due from the largest acquired Over-Formula Advance client. See Note 2 – Acquisitions and Divestitures for further discussion of Over-Formula Advance activity.

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 current interest rate environment. Generally, the impact of these assumed prepayment speeds is lesser in magnitude than the aforementioned loss driver assumptions.

For all DCF models at December 31, 2022, 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 December 31, 2022 as compared to December 31, 2021, the Company there was relatively little change to assumed forecasted national unemployment, a steeper decrease in one-year percentage change in national retail sales, a steeper decrease in one-year percentage change in the national home price index, and a steeper decrease in one-year percentage change in national gross domestic product. At December 31, 2022 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 slight increase in the first projected quarter followed by a decline to near-zero or negative levels over the last three projected quarters to a level below recent actual periods. For percentage changes in national home price index and national gross domestic product, the Company projected declines over the last three projected quarters to negative levels below recent actual periods. At December 31, 2022, the Company slowed its historical prepayment speeds in response to the rising 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 year ended December 31, 2022, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $1,769,000. Changes in required specific reserves also increased the required ACL at December 31, 2022. Changes in loan volume and mix during the year ended December 31, 2022 decreased the ACL during the period. Net charge-offs during the period were $6,445,000.

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 Receivable		Equipment		Other		Total		ACL Allocation
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 was fully reserved. At December 31, 2022 the balance of Misdirected Payments included in factored receivables was $19,361,000 and carried no ACL allocation.


(Dollars in thousands)	Real Estate		Accounts Receivable		Equipment		Other		Total		ACL Allocation
December 31, 2021
Commercial real estate	$	2,143	$	—	$	—	$	155	$	2,298	$	283
Construction, land development, land	987		—		—		—		987		—
1-4 family residential	1,583		—		—		116		1,699		39
Farmland	1,803		—		126		116		2,045		—
Commercial	254		—		5,598		3,017		8,869		1,733
Factored receivables	—		42,863		—		—		42,863		12,640
Consumer	—		—		—		240		240		21
Mortgage warehouse	—		—		—		—		—		—
Total	$	6,770	$	42,863	$	5,724	$	3,644	$	59,001	$	14,716

At December 31, 2021 the balance of the Over-Formula Advance Portfolio included in factored receivables was $10,077,000 and was fully reserved. At December 31, 2021 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 30-59 Days		Past Due 60-90 Days		Past Due 90 Days or More		Total Past Due		Current		Total		Past Due 90 Days or More Still Accruing
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 properties	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		—
	$	46,716	$	16,362	$	41,367	$	104,445	$	4,015,846	$	4,120,291	$	37,142


(Dollars in thousands)	Past Due 30-59 Days		Past Due 60-90 Days		Past Due 90 Days or More		Total Past Due		Current		Total		Past Due 90 Days or More Still Accruing
December 31, 2021
Commercial real estate	$	1,021	$	—	$	16	$	1,037	$	631,738	$	632,775	$	—
Construction, land development, land	30		—		145		175		123,289		123,464		—
1-4 family residential properties	730		332		1,114		2,176		120,939		123,115		134
Farmland	378		154		977		1,509		75,885		77,394		—
Commercial	996		346		4,948		6,290		1,424,139		1,430,429		—
Factored receivables	70,109		18,302		39,134		127,545		1,571,992		1,699,537		39,134
Consumer	255		48		99		402		10,483		10,885		—
Mortgage warehouse	—		—		—		—		769,973		769,973		—
	$	73,519	$	19,182	$	46,433	$	139,134	$	4,728,438	$	4,867,572	$	39,268

At December 31, 2022 and 2021, total past due Over-Formula Advances recorded in factored receivables was $8,202,000 and $10,077,000, respectively, all of which was considered past due 90 days or more. Aging of the Over-Formula Advances is based upon the service month on which the advances were made by TFS prior to acquisition. At December 31, 2022 and 2021, 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:


	December 31, 2022				December 31, 2021
(Dollars in thousands)	Total Nonaccrual		Nonaccrual With No ACL		Total Nonaccrual		Nonaccrual With No ACL
Commercial real estate	$	871	$	319	$	2,025	$	1,375
Construction, land development, land	150		150		964		964
1-4 family residential	1,391		1,238		1,683		1,582
Farmland	400		400		2,044		2,044
Commercial	15,393		3,662		8,078		3,910
Factored receivables	—		—		—		—
Consumer	91		91		240		159
Mortgage warehouse	—		—		—		—
	$	18,296	$	5,860	$	15,034	$	10,034

The following table presents accrued interest on nonaccrual loans reversed through interest income:


	Year Ended December 31,
(Dollars in thousands)	2022		2021		2020
Commercial real estate	$	—	$	8	$	438
Construction, land development, land	2		—		1
1-4 family residential	1		3		32
Farmland	—		6		39
Commercial	28		36		86
Factored receivables	—		—		—
Consumer	—		3		2
Mortgage warehouse	—		—		—
	$	31	$	56	$	598

There was no interest earned on nonaccrual loans during the years ended December 31, 2022, 2021, and 2020.

The following table presents information regarding nonperforming loans:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Nonaccrual loans(1)	$	18,296	$	15,034
Factored receivables greater than 90 days past due	28,940		29,057
Other nonperforming factored receivables(2)	491		1,428
Troubled debt restructurings accruing interest	503		765
	$	48,230	$	46,284

(1) Includes troubled debt restructurings of $1,897,000 and $3,912,000 at December 31, 2022 and 2021, respectively.

(2) Other nonperforming factored receivables represent the portion of the Over-Formula Advance Portfolio that is not covered by Covenant's indemnification. 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 December 31, 2022 and 2021, based on the most recent analysis performed, the risk category of loans is as follows:


													Revolving Loans		Revolving Loans Converted To Term Loans		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	$	1,204,622	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1,204,622
Classified	12,974		—		19,853		—		—		—		—		—		32,827
Total factored receivables	$	1,217,596	$	—	$	19,853	$	—	$	—	$	—	$	—	$	—	$	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	$	2,572,361	$	382,067	$	360,168	$	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	$	2,600,923	$	396,193	$	385,777	$	80,301	$	34,304	$	91,678	$	530,450	$	665	$	4,120,291


													Revolving Loans		Revolving Loans Converted To Term Loans		Total
(Dollars in thousands)	Year of Origination
December 31, 2021	2021		2020		2019		2018		2017		Prior
Commercial real estate
Pass	$	211,088	$	249,652	$	50,223	$	25,930	$	47,447	$	37,290	$	4,595	$	—	$	626,225
Classified	2,879		3,358		41		—		16		—		256		—		6,550
Total commercial real estate	$	213,967	$	253,010	$	50,264	$	25,930	$	47,463	$	37,290	$	4,851	$	—	$	632,775

Construction, land development, land
Pass	$	56,764	$	33,756	$	4,744	$	23,696	$	1,199	$	994	$	8	$	—	$	121,161
Classified	2,150		8		—		—		—		145		—		—		2,303
Total construction, land development, land	$	58,914	$	33,764	$	4,744	$	23,696	$	1,199	$	1,139	$	8	$	—	$	123,464

1-4 family residential
Pass	$	26,840	$	15,195	$	9,485	$	6,526	$	8,591	$	22,151	$	32,210	$	318	$	121,316
Classified	273		233		53		6		64		1,089		81		—		1,799
Total 1-4 family residential	$	27,113	$	15,428	$	9,538	$	6,532	$	8,655	$	23,240	$	32,291	$	318	$	123,115

Farmland
Pass	$	14,387	$	13,396	$	7,892	$	8,040	$	10,040	$	19,792	$	1,317	$	241	$	75,105
Classified	199		612		593		333		128		298		126		—		2,289
Total farmland	$	14,586	$	14,008	$	8,485	$	8,373	$	10,168	$	20,090	$	1,443	$	241	$	77,394

Commercial
Pass	$	466,254	$	332,746	$	77,010	$	18,940	$	15,032	$	7,704	$	490,159	$	49	$	1,407,894
Classified	9,317		6,858		5,088		558		56		456		202		—		22,535
Total commercial	$	475,571	$	339,604	$	82,098	$	19,498	$	15,088	$	8,160	$	490,361	$	49	$	1,430,429

Factored receivables
Pass	$	1,667,922	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1,667,922
Classified	10,826		20,789		—		—		—		—		—		—		31,615
Total factored receivables	$	1,678,748	$	20,789	$	—	$	—	$	—	$	—	$	—	$	—	$	1,699,537

Consumer
Pass	$	3,252	$	1,794	$	669	$	553	$	2,424	$	1,882	$	70	$	—	$	10,644
Classified	5		—		—		12		119		105		—		—		241
Total consumer	$	3,257	$	1,794	$	669	$	565	$	2,543	$	1,987	$	70	$	—	$	10,885

Mortgage warehouse
Pass	$	769,973	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	769,973
Classified	—		—		—		—		—		—		—		—		—
Total mortgage warehouse	$	769,973	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	769,973

Total loans
Pass	$	3,216,480	$	646,539	$	150,023	$	83,685	$	84,733	$	89,813	$	528,359	$	608	$	4,800,240
Classified	25,649		31,858		5,775		909		383		2,093		665		—		67,332
Total loans	$	3,242,129	$	678,397	$	155,798	$	84,594	$	85,116	$	91,906	$	529,024	$	608	$	4,867,572

Troubled Debt Restructurings

The Company had a recorded investment in troubled debt restructurings of $2,400,000 and $4,677,000 as of December 31, 2022 and 2021, respectively. The Company had allocated specific allowances for these loans of $1,067,000 and $1,068,000 at December 31, 2022 and 2021, respectively, and had not committed to lend additional amounts.

The following table presents the pre- and post-modification recorded investment of loans modified as troubled debt restructurings during the years ended December 31, 2022, 2021, and 2020. The Company did not grant principal reductions on any restructured loans.


(Dollars in thousands)	Extended Amortization Period		Payment Deferrals		Protective Advances		Total Modifications		Number of Loans
December 31, 2022
Commercial	$	45	$	—	$	—	$	45	1
	$	45	$	—	$	—	$	45	1

December 31, 2021
Commercial real estate	$	—	$	—	$	741	$	741	1
Commercial	—		697		—		697		2
	$	—	$	697	$	741	$	1,438	3

December 31, 2020
Commercial real estate	$	—	$	727	$	—	$	727	3
Construction, land development, land	8		981		—		989		2
1-4 family residential properties	—		171		—		171		1
Farmland	3,486		—		—		3,486		1
Commercial	4,714		9,877		—		14,591		22
	$	8,208	$	11,756	$	—	$	19,964	29

During the year ended December 31, 2022, the Company had one loan modified as a troubled debt restructuring with a recorded investment of $44,000 for which there was a payment default within twelve months following the modification. The payment default did not result in incremental allowance allocations or charge-offs. During the year ended December 31, 2021, the Company had three loans modified as troubled debt restructurings with a recorded investment of $1,681,000 for which there was a payment default within twelve months following the modification. During the year ended December 31, 2020, the Company had one loan modified as a troubled debt restructuring with a recorded investment of $5,741,000 for which there was a payment default within twelve months following the modification. Default is determined at 90 or more days past due, charge-off, or foreclosure.

The following table summarizes the balance of loans modified for borrowers impacted by the COVID-19 pandemic.


	Year Ended December 31,
(Dollars in thousands)	2022	2021	2020
Total modifications	—	10,801	628,022

These modifications primarily consisted of payment deferrals to assist customers. As these modifications related to the COVID-19 pandemic and qualify under the provisions of either Section 4013 of the CARES act or Interagency Guidance, they are not considered troubled debt restructurings.

There were no loans in deferral at December 31, 2022. The following table summarized the amortized cost of loans with payments currently in deferral and the accrued interest related to the loans with payments in deferral at December 31, 2021:


(Dollars in thousands)	Total Loans		Balance of Loans Currently in Deferral		Percentage of Portfolio		Accrued Interest Receivable

December 31, 2021
Commercial real estate	$	632,775	$	30,212	4.8	%	$	116
Construction, land development, land	123,464		1,340		1.1	%	5
1-4 family residential	123,115		—		—	%	—
Farmland	77,394		338		0.4	%	3
Commercial	1,430,429		—		—	%	—
Factored receivables	1,699,537		—		—	%	—
Consumer	10,885		6		0.1	%	—
Mortgage warehouse	769,973		—		—	%	—
Total	$	4,867,572	$	31,896	0.7	%	$	124

Residential Real Estate Loans In Process of Foreclosure

At December 31, 2022 and 2021, the Company had $129,000 and $301,000, respectively, in 1-4 family residential real estate loans for which formal foreclosure proceedings were in process.

Other Real Estate Owned

12 Months Ended

Dec. 31, 2022

Other Real Estate [Abstract]

Other Real Estate Owned

OTHER REAL ESTATE OWNED

Other real estate owned activity was as follows:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Beginning balance	$	524	$	1,432	$	3,009
Loans transferred to OREO	47		692		1,150
Net OREO gains (losses) and valuation adjustments	(133)		(347)		(616)
Sales of OREO	(438)		(1,253)		(2,111)
Ending balance	$	—	$	524	$	1,432

Premises and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Premises and Equipment

PREMISES AND EQUIPMENT

Premises and Equipment

Premises and equipment consisted of the following:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Land	$	13,080	$	12,992
Buildings	55,001		52,558
Leasehold improvements	37,406		35,235
Automobiles and aircraft	9,929		9,820
Furniture, fixtures and equipment	35,465		35,091
	150,881		145,696
Accumulated depreciation	(47,542)		(39,967)
	$	103,339	$	105,729

Depreciation expense was $13,302,000, $12,037,000 and $10,720,000 for the years ended December 31, 2022, 2021, and 2020, respectively.

Leases

The Company leases certain premises and equipment under operating leases. At December 31, 2022 and 2021, the Company had lease liabilities totaling $34,035,000 and $35,828,000, respectively, and right-of-use assets totaling $30,973,000 and $32,826,000, respectively, related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. For the years ended December 31, 2022 and 2021, the weighted average remaining lease term for operating leases was 7.74 and 8.4 years, respectively, and the weighted average discount rate used in the measurement of operating lease liabilities was 2.9% and 2.0%, respectively.

Lease costs were as follows:


	Year Ended December 31,
(Dollars in thousands)	2022		2021		2020
Operating lease cost	$	4,242	$	4,538	$	5,290

Variable lease cost	880		443		422
Total lease cost	$	5,122	$	4,981	$	5,712

There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the year ended December 31, 2022. At December 31, 2022, the Company did not have any leases that had not yet commenced, but will create significant rights and obligations for the Company.

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows:


(Dollars in thousands)	December 31, 2022
Lease payments due:
Within one year	$	5,515
After one but within two years	5,275
After two but within three years	5,181
After three but within four years	4,922
After four but within five years	4,770
After five years	12,848
Total undiscounted cash flows	38,511
Discount on cash flows	(4,476)
Total lease liability	$	34,035

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2022

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)	December 31, 2022		December 31, 2021
Goodwill	$	233,709	$	233,727


	December 31, 2022						December 31, 2021
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangibles	$	43,578	$	(35,347)	$	8,231	$	43,578	$	(31,800)	$	11,778
Software intangible asset	16,932		(6,702)		10,230		16,932		(2,469)		14,463
Other intangible assets	30,410		(16,813)		13,597		29,560		(12,672)		16,888
	$	90,920	$	(58,862)	$	32,058	$	90,070	$	(46,941)	$	43,129

The changes in goodwill and intangible assets by operating segment during the year are as follows:


(Dollars in thousands)
December 31, 2022	Banking		Factoring		Payments		Corporate		Total
Beginning balance	$	119,306	$	63,275	$	94,275	$	—	$	276,856
Acquired goodwill	—		—		—		—		—
Acquired goodwill - measurement period adjustment	—		—		(18)		—		(18)
Acquired intangibles	751		—		—		100		851
Amortization of intangibles	(3,761)		(2,293)		(5,868)		—		(11,922)
Ending balance	$	116,296	$	60,982	$	88,389	$	100	$	265,767


(Dollars in thousands)
December 31, 2021	Banking		Factoring		Payments		Corporate		Total
Beginning balance	$	123,882	$	66,040	$	—	$	—	$	189,922
Acquired goodwill	—		—		73,697		—		73,697
Acquired goodwill - measurement period adjustment	—		59		(3,238)		—		(3,179)
Acquired intangibles	—		—		27,292		—		27,292
Amortization of intangibles	(4,576)		(2,824)		(3,476)		—		(10,876)
Ending balance	$	119,306	$	63,275	$	94,275	$	—	$	276,856


(Dollars in thousands)
December 31, 2020	Banking		Factoring		Payments		Corporate		Total
Beginning balance	$	129,272	$	61,014	$	—	$	—	$	190,286
Acquired goodwill	—		4,466		—		—		4,466
Acquired intangibles	—		3,500		—		—		3,500
Amortization of intangibles	(5,390)		(2,940)		—		—		(8,330)
Ending balance	$	123,882	$	66,040	$	—	$	—	$	189,922

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. The Company assesses goodwill for impairment at its reporting units that contain goodwill, Banking, Factoring, and Payments. A goodwill impairment test was performed on the Company's reporting units as of October 1, 2022. At the measurement date the Company elected to perform qualitative assessments to determine if it was more likely than not that the fair value of the reporting units exceeded their carrying values, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment.

After performing an impairment test of intangible assets during the years ended December 31, 2022, 2021, and 2020, it was determined that the fair value of the intangible assets exceeded their carrying amount and thus no intangible asset impairment was recorded.

Except for software intangible assets that are amortized utilizing a straight line method, material acquired intangible assets are being amortized utilizing an accelerated method over their estimated useful lives, which range from 4 to 11 years.

The future amortization schedule for the Company’s intangible assets with finite lives is as follows:


(Dollars in thousands)
2023	$	10,482
2024	9,159
2025	5,400
2026	2,480
2027	1,571
Thereafter	2,115
	$	31,207

Amortization schedule excludes $851,000 of indefinite lived intangible assets.

Equity Method Investment

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investment

EQUITY METHOD INVESTMENT

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 year ended December 31, 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 security 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 year ended December 31, 2022.

The following table presents the Company’s investment in WSI:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Common stock	$	38,088	$	5,142
Warrants	—		3,224
Total investment	$	38,088	$	8,366

The entire investment is included in other assets within the Company’s consolidated balance sheets and has been allocated to the Payments segment. All gains and losses related to the investment are included in the Payment segment’s operating results.

Variable Interest Entities

12 Months Ended

Dec. 31, 2022

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 Date	Offering Amount
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 $4,077,000 and $4,947,000 at December 31, 2022 and 2021, 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 are variable interest entities and that the Company holds variable interests in the entities in the form of its investments in the subordinated notes of the 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 is not the primary beneficiary and therefore is not required to consolidate the assets, liabilities, equity or operations of the CLO funds in the Company’s financial statements.

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2022

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 year ended December 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 year ended December 31, 2022, the Company reclassified $465,000 into earnings through interest expense in the consolidated statements of income. On May 4, 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:


	Year Ended
(Dollars in thousands)	December 31, 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 December 31, 2022. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2021.

Derivative Assets

As of December 31, 2021

(Dollars in thousands)

Notional
Amount

Balance
Sheet Location

Fair Value
Total

Derivatives designated as hedging instruments:

Interest rate swaps

200,000

Other Assets

6,164

The table below presents the effect of fair value and cash flow hedge accounting on Accumulated Other Comprehensive Income, net of tax:


	Amount of Gain or (Loss) Recognized in OCI on Derivative		Amount of Gain or (Loss) Recognized in OCI Included Component		Location of Gain or (Loss) Recognized from AOCI into Income	Amount of Gain or (Loss) Reclassified from AOCI into Income		Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component
(Dollars in thousands)
Year Ended December 31, 2022
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	2,398	$	2,398	Interest Expense, Noninterest Income	$	7,103	$	7,103

Year Ended December 31, 2021
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	3,995	$	3,995	Interest Expense	$	(71)	$	(71)

Year Ended December 31, 2020
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	597	$	597	Interest Expense	$	(26)	$	(26)

Deposits

12 Months Ended

Dec. 31, 2022

Deposits [Abstract]

Deposits

DEPOSITS

Deposits are summarized as follows:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Noninterest-bearing demand	$	1,756,680	$	1,925,370
Interest-bearing demand	856,512		830,019
Individual retirement accounts	68,125		83,410
Money market	508,534		520,358
Savings	551,780		504,146
Certificates of deposit	319,150		533,206
Brokered time deposits	110,555		40,125
Other brokered deposits	—		210,045
Total deposits	$	4,171,336	$	4,646,679

At December 31, 2022, scheduled maturities of time deposits, including certificates of deposits, individual retirement accounts and brokered time deposits, are as follows:


(Dollars in thousands)	December 31, 2022
Within one year	$	435,978
After one but within two years	42,394
After two but within three years	9,509
After three but within four years	5,052
After four but within five years	4,897
Total	$	497,830

Time deposits, including individual retirement accounts, certificates of deposit, and brokered time deposits, with individual balances of $250,000 and greater totaled $58,462,000 and $116,977,000 at December 31, 2022 and 2021, respectively.

Borrowings and Borrowing Capacity

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Borrowings And Borrowing Capacity

BORROWINGS AND BORROWING CAPACITY

Customer Repurchase Agreements

Customer repurchase agreements are overnight customer sweep arrangements. Information concerning customer repurchase agreements is summarized as follows:


(Dollars in thousands)	December 31, 2022			December 31, 2021
Amount outstanding at end of the year	$	340		$	2,103
Weighted average interest rate at end of the year	0.03		%	0.03		%
Average daily balance during the year	$	6,701		$	5,985
Weighted average interest rate during the year	0.03		%	0.03		%
Maximum month-end balance during the year	$	13,463		$	12,405

Customer repurchase agreements are secured by pledged securities with carrying amounts as follows:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Asset-backed securities	$	4,994	$	4,999
CLO securities	—		9,971
	$	4,994	$	14,970

FHLB Advances

FHLB advances are collateralized by assets, including a blanket pledge of certain loans. FHLB advances and weighted average interest rates at end of period by contractual maturity are summarized as follows:


	Variable Rate
(Dollars in thousands)		Balance Outstanding	Weighted Average Interest Rate

2027		30,000	4.25	%

Information concerning FHLB advances is summarized as follows:


(Dollars in thousands)	December 31, 2022			December 31, 2021
Amount outstanding at end of the year	$	30,000		$	180,000
Weighted average interest rate at end of the year	4.25		%	0.15		%
Average daily balance during the year	$	69,658		$	37,671
Weighted average interest rate during the year	1.19		%	0.24		%
Maximum month-end balance during the year	$	230,000		$	180,000

The Company’s unused borrowing capacity with the FHLB is as follows:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Borrowing capacity	$	676,307	$	978,794
Borrowings outstanding	(30,000)		(180,000)
Unused borrowing capacity	$	646,307	$	798,794

Paycheck Protection Program Liquidity Facility (“PPPLF”)

The PPPLF is a lending facility offered by the Federal Reserve Banks to facilitate lending to small businesses under the Paycheck Protection Program. Borrowings under the PPPLF are secured by Paycheck Protection Program Loans (“PPP loans”) guaranteed by the Small Business Administration (“SBA”) and mature at the same time as the PPP Loan pledged to secure the extension of credit. The maturity dates of the borrowings are accelerated if the underlying PPP Loan goes into default and the Company sells the PPP Loan to the SBA to realize on the SBA guarantee or if the Company receives any loan forgiveness reimbursement from the SBA for the underlying PPP Loan.

Information concerning borrowings under the PPPLF is summarized as follows:


(Dollars in thousands)	December 31, 2022			December 31, 2021
Amount outstanding at end of period	$	—		$	27,144
Weighted average interest rate at end of period	—		%	0.35		%
Average amount outstanding during the period	670			118,880
Weighted average interest rate during the period	0.32		%	0.35		%
Highest month end balance during the period	—			181,635

There were no PPPLF borrowings outstanding at December 31, 2022. At December 31, 2021, the PPPLF borrowings were secured by PPP Loans totaling $27,144,000 and incurred interest at a fixed rate of 0.35% annually.

Federal Funds Purchased

The Company had no federal funds purchased at December 31, 2022 and 2021. However, as of December 31, 2022, the Company had unsecured federal funds lines of credit with seven unaffiliated banks totaling $227,500,000.

Federal Reserve Bank Discount Window

The Company has entered into agreements with the Federal Reserve Bank of Dallas to borrow from its discount window. The Company had no Federal Reserve Bank discount window borrowings outstanding at December 31, 2022 and 2021. At December 31, 2022, the Company had $510,724,000 of unused borrowing capacity from the Federal Reserve Bank discount window, to which the Company pledged loans with an outstanding balance of $679,897,000.

Subordinated Notes

The following provides a summary of the Company’s subordinated notes:


(Dollars in thousands)	Face Value		Carrying Value		Maturity Date	Current Interest Rate	First Repricing Date	Variable Interest Rate at Repricing Date	Initial Issuance Costs
Subordinated Notes issued November 27, 2019	$	39,500	$	38,857	2029	4.875%	11/27/2024	Three Month LIBOR plus 3.330%	$	1,218
Subordinated Notes issued August 26, 2021	70,000		68,943		2031	3.500%	9/01/2026	Three Month SOFR(1) plus 2.860%	$	1,776
	$	109,500	$	107,800

(1) Secured Overnight Financing Rate

The Subordinated Notes bear interest payable semi-annually in arrears to, but excluding the first repricing date, and thereafter payable quarterly in arrears at an annual floating rate. The Company may, at its option, beginning on the respective first repricing date and on any scheduled interest payment date thereafter, redeem the Subordinated Notes, in whole or in part, at a redemption price equal to the outstanding principal amount of the Subordinated Notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption.

The Subordinated Notes are included on the consolidated balance sheets as liabilities at their carrying values; however, for regulatory purposes, the $107,800,000 and $106,957,000 carrying value of these obligations at December 31, 2022 and 2021, respectively, were eligible for inclusion in Tier 2 regulatory capital. Issuance costs related to the Subordinated Notes have been netted against the subordinated notes liability on the balance sheet. The debt issuance costs are being amortized using the effective interest method through maturity and recognized as a component of interest expense.

The Subordinated Notes are subordinated in right of payment to the Company’s existing and future senior indebtedness and are structurally subordinated to the Company’s subsidiaries’ existing and future indebtedness and other obligations.

On September 30, 2016, the Company issued $50,000,000 of Fixed-to-Floating Rate Subordinated Notes due 2026 (the “2016 Notes”). The 2016 Notes initially bear interest at 6.50% per annum, payable semi-annually in arrears, to, but excluding, September 30, 2021, and, thereafter and to, but excluding, the maturity date or earlier redemption, interest shall be payable quarterly in arrears, at an annual floating rate equal to three-month LIBOR as determined for the applicable quarterly period, plus 5.345%. The Company redeemed the 2016 Notes in whole on September 30, 2021 at which time $755,000 in remaining deferred costs were recognized through interest expense.

Junior Subordinated Debentures

The following provides a summary of the Company’s junior subordinated debentures:


(Dollars in thousands)	Face Value		Carrying Value		Maturity Date	Variable Interest Rate	Interest Rate At December 31, 2022
National Bancshares Capital Trust II	$	15,464	$	13,489	September 2033	LIBOR + 3.00%	7.77%
National Bancshares Capital Trust III	17,526		13,409		July 2036	LIBOR + 1.64%	5.72%
ColoEast Capital Trust I	5,155		3,758		September 2035	LIBOR + 1.60%	6.33%
ColoEast Capital Trust II	6,700		4,869		March 2037	LIBOR + 1.79%	6.52%
Valley Bancorp Statutory Trust I	3,093		2,906		September 2032	LIBOR + 3.40%	8.12%
Valley Bancorp Statutory Trust II	3,093		2,727		July 2034	LIBOR + 2.75%	7.49%
	$	51,031	$	41,158

These debentures are unsecured obligations due to trusts that are unconsolidated subsidiaries. The debentures were issued in conjunction with the trusts’ issuances of obligated capital securities. The trusts used the proceeds from the issuances of their capital securities to buy floating rate junior subordinated deferrable interest debentures that bear the same interest rate and terms as the capital securities. These debentures are the trusts’ only assets and the interest payments from the debentures finance the distributions paid on the capital securities. These debentures rank junior and are subordinate in the right of payment to all other debt of the Company.

As part of the purchase accounting adjustments made with the National Bancshares, Inc. acquisition on October 15, 2013, the ColoEast acquisition on August 1, 2016, and the Valley acquisition on December 9, 2017, the Company adjusted the carrying value of the junior subordinated debentures to fair value as of the respective acquisition dates. The discount on the debentures will continue to be amortized through maturity and recognized as a component of interest expense.

The debentures may be called by the Company at par plus any accrued but unpaid interest. Interest on the debentures is calculated quarterly. The distribution rate payable on the capital securities is cumulative and payable quarterly in arrears. The Company has the right to defer payments on interest on the debentures at any time by extending the interest payment period for a period not exceeding 20 consecutive quarters with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the debentures.

The debentures are included on the consolidated balance sheet as liabilities; however, for regulatory purposes, the carrying value of these obligations are eligible for inclusion in Tier I regulatory capital, subject to certain limitations. All of the carrying value of $41,158,000 and $40,602,000 was allowed in the calculation of Tier I regulatory capital as of December 31, 2022 and 2021, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee Benefit Plans	EMPLOYEE BENEFIT PLANS 401(k) Plan The Company sponsors a 401(k) benefit plan that allows employee contributions up to the maximum tax-deferred limitations established by the Internal Revenue Code, which are matched by the Company equal to 100% of the first 4% of the compensation contributed. Expense related to the 401(k) matching contributions for the years ended December 31, 2022, 2021, and 2020 was $3,569,000, $2,976,000 and $2,519,000, respectively.

- Definition

The entire disclosure for retirement benefits.

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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Income tax expense consisted of the following:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Income tax expense:
Current	$	36,472	$	37,812	$	22,766
Deferred	(1,828)		(5,832)		(2,080)
Change in valuation allowance for deferred tax asset	49		—		—
Income tax expense	$	34,693	$	31,980	$	20,686

Effective tax rates differ from federal statutory rates applied to income before income taxes due to the following:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Tax provision computed at federal statutory rate	$	28,771	$	30,440	$	17,789
Effect of:
State taxes, net	4,849		3,335		2,919
Stock-based compensation	(369)		(1,778)		(109)
Non-deductible executive compensation	1,510		492		52
Bank-owned life insurance	(89)		(332)		(121)
Tax exempt interest	(100)		(201)		(250)
Change in valuation allowance for deferred tax asset	49		—		—
Other	72		24		406
Income tax expense	$	34,693	$	31,980	$	20,686

Deferred income taxes reflect the net tax effects of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:


(Dollars in thousands)	2022		2021
Deferred tax assets
Federal net operating loss carryforwards	$	6,396	$	7,231
State net operating loss carryforwards	1,534		1,458
Stock-based compensation	7,825		5,742
Unrealized loss on securities available for sale	2,163		—
Allowance for credit losses	11,825		11,341
Accrued liabilities	4,179		4,465
Lease liability	8,062		8,348
Other	3,405		707
Total deferred tax assets	45,389		39,292
Deferred tax liabilities
Goodwill and intangible assets	9,934		9,449
Fair value adjustment on junior subordinated debentures	2,237		2,324
Premises and equipment	6,339		4,786
Acquired loan basis	371		525
Installment gain on sale of subsidiary	—		626
Lease right-of-use asset	7,339		7,598
Unrealized gain on securities available for sale	—		1,023
Derivative financial instruments	—		1,475
Indemnification asset	935		1,123
Other	1,434		62
Total deferred tax liabilities	28,589		28,991
Net deferred tax asset before valuation allowance	16,800		10,301
Valuation allowance	(327)		(278)
Net deferred tax asset	$	16,473	$	10,023

The Company's federal and state net operating loss carryforwards as of December 31, 2022 were $30,458,000 and $26,695,000, respectively, which will expire at various dates from 2031 through 2035, with the exception of $15,855,000 of net operating loss carryforwards that will not expire. The Company has a valuation allowance on certain net operating loss carryforwards that are not expected to be realized before expiration.

The Company's federal and state net operating loss carryforwards as of December 31, 2021 were $34,433,000 and $24,157,000, respectively.

An Internal Revenue Code Section 382 (“Section 382”) ownership change was triggered as part of previous acquisitions. A significant portion of the deferred tax asset relating to the Company's net operating loss carryforwards is subject to the annual limitation rules under Section 382. The utilization of tax carryforward attributes acquired from the EJ Financial Corp. (2010) acquisition is subject to an annual limitation of $341,000, with $2,667,000 of carryforwards remaining at December 31, 2022. The utilization of tax carryforward attributes acquired from the National Bancshares, Inc. (2013) acquisition is subject to an annual limitation of $2,040,000, with $11,936,000 of carryforwards remaining at December 31, 2022. The utilization of tax carryforward attributes acquired from HubTran, Inc. (2021) is subject to an annual limitation of $1,594,000, with $15,855,000 of carryforwards remaining at December 31, 2022.

The utilization of deferred tax assets related to the state net operating loss and tax credit carryforwards acquired from the ColoEast (2016) stock acquisition are subject to an annual limitation of $1,906,000 under Section 382 rules, with $2,445,000 of state carryforwards remaining at December 31, 2022.

At December 31, 2022 and 2021, the Company had no amounts recorded for uncertain tax positions and does not expect any material changes in uncertain tax benefits during the next 12 months. The Company recognizes interest and penalties related to income tax matters in income tax expense.

The Company is subject to U.S. federal income tax as well as income tax in various states. The Company is generally not subject to examination by taxing authorities for years prior to 2019.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Legal Contingencies	12 Months Ended
Legal Contingencies	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Legal Contingencies	LEGAL CONTINGENCIESVarious legal claims arise from time to time in the normal course of business which, in the opinion of management as of December 31, 2022, will have no material effect on the Company’s consolidated financial statements. The Company does not anticipate any material losses as a result of commitments and contingent liabilities.

Off-Balance Sheet Loan Commitments

12 Months Ended

Dec. 31, 2022

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:


	December 31, 2022						December 31, 2021
(Dollars in thousands)	Fixed Rate		Variable Rate		Total		Fixed Rate		Variable Rate		Total
Unused lines of credit	$	1,417	$	487,965	$	489,382	$	26,029	$	523,483	$	549,512
Standby letters of credit	$	12,309	$	4,897	$	17,206	$	11,090	$	5,409	$	16,499
Commitments to purchase loans	$	—	$	53,572	$	53,572	$	—	$	108,423	$	108,423
Mortgage warehouse commitments	$	—	$	1,055,117	$	1,055,117	$	—	$	823,060	$	823,060

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 standby 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 December 31, 2022 and 2021, the allowance for credit losses on off balance sheet credit exposures totaled $3,606,000 and $4,082,000, 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:


	Year Ended December 31,
(Dollars in thousands)	2022		2021		2020
Credit loss expense (benefit)	$	(476)	$	(922)	$	2,448

Fair Value Disclosures

12 Months Ended

Dec. 31, 2022

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.

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 Fair Value
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


(Dollars in thousands)	Fair Value Measurements Using						Total Fair Value
December 31, 2021	Level 1		Level 2		Level 3
Assets measured at fair value on a recurring basis
Securities available for sale
Mortgage-backed securities, residential	$	—	$	37,449	$	—	$	37,449
Asset-backed securities	—		6,764		—		6,764
State and municipal	—		26,825		—		26,825
CLO Securities	—		106,634		—		106,634
Corporate bonds	—		2,056		—		2,056
SBA pooled securities	—		2,698		—		2,698
	$	—	$	182,426	$	—	$	182,426

Equity securities with readily determinable fair values
Mutual fund	$	5,504	$	—	$	—	$	5,504

Loans held for sale	$	—	$	7,330	$	—	$	7,330

Indemnification asset	$	—	$	—	$	4,786	$	4,786

Derivative financial instruments (cash flow hedges)
Interest rate swap	$	—	$	6,164	$	—	$	6,164

There were no transfers between levels for the years ended December 31, 2022 and 2021.

The Company used the following methods and assumptions to estimate fair value of financial instruments that are measured at fair value on a recurring basis:

Securities available for sale – The fair values of debt securities available for sale are determined by third-party matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Equity securities with readily determinable fair values – The fair values of equity securities are determined based on quoted market prices in active markets and are classified in Level 1 of the valuation hierarchy.

Loans held for sale – The fair value of loans held for sale is determined using commitments on hand from investors or prevailing market prices and are classified in Level 2 of the valuation hierarchy.

Derivative Financial Instruments – The Company used interest rate swaps as part of its cash flow strategy to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The derivative financial instrument fair value is considered a Level 2 classification.

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. 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 within the Consolidated Statements of Income. The indemnification asset fair value is considered a Level 3 classification. At December 31, 2022 and 2021, the estimated cash payments expected to be received from Covenant for probable losses on the covered Over-Formula Advance Portfolio were $4,101,000 and $5,038,000, 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:


(Dollars in thousands)	2022		2021		2020
Beginning balance	$	4,786	$	36,225	$	—
Indemnification asset recognized in business combination	—		—		30,959
Change in fair value of indemnification asset recognized in earnings	(890)		4,194		5,266
Indemnification recognized	—		(35,633)		—
Ending balance	$	3,896	$	4,786	$	36,225

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 December 31, 2022, the estimated cash payments expected to be received from the purchaser for the Company's share of future gross monthly revenue was $7,613,000 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:


(Dollars in thousands)	2022
Beginning balance	$	—
Revenue share asset recognized	6,237
Change in fair value of revenue share asset recognized in earnings	(62)
Revenue share payments received	(660)
Ending balance	$	5,515

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 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% prepayment speed; 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:


(Dollars in thousands)	2022
Beginning balance	$	—
Return of premium liability recognized in business combination	708
Change in fair value of return of premium liability recognized in earnings	(35)
Return of premium payments made	(98)
Ending balance	$	575

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 December 31, 2022 and 2021.


(Dollars in thousands)	Fair Value Measurements Using						Total Fair Value
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
Consumer	—		—		—		—

Equity investment without readily determinable fair value	38,088		—		—		38,088



	$	38,088	$	—	$	36,676	$	74,764


(Dollars in thousands)	Fair Value Measurements Using						Total Fair Value
December 31, 2021	Level 1		Level 2		Level 3
Collateral dependent loans
Commercial real estate	$	—	$	—	$	366	$	366

1-4 family residential	—		—		61		61
Commercial	—		—		2,435		2,435
Factored receivables	—		—		30,224		30,224
Consumer	—		—		60		60
Other real estate owned (1):
Commercial real estate	—		—		7		7
Construction, land development, land	—		—		63		63


	$	—	$	—	$	33,216	$	33,216

(1) Represents the fair value of OREO that was adjusted subsequent to its initial classification as OREO.

As of December 31, 2022 and 2021, the only Level 3 assets with material unobservable inputs are associated with impaired loans and OREO.

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.

OREO

OREO is primarily comprised of real estate acquired in partial or full satisfaction of loans. OREO is recorded at its estimated fair value less estimated selling and closing costs at the date of transfer, with any excess of the related loan balance over the fair value less expected selling costs charged to the ACL. Subsequent changes in fair value are reported as adjustments to the carrying amount and are recorded against earnings. The Company outsources the valuation of OREO with material balances to third-party appraisers. 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.

The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis were as follows:


	December 31, 2022
	Carrying Amount		Fair Value Measurements Using						Total Fair Value
(Dollars in thousands)			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


	December 31, 2021
	Carrying Amount		Fair Value Measurements Using						Total Fair Value
(Dollars in thousands)			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	383,178	$	383,178	$	—	$	—	$	383,178
Securities - held to maturity	4,947		—		—		5,447		5,447
Loans not previously presented, gross	4,834,426		142,962		—		4,685,058		4,828,020
FHLB and other restricted stock	10,146		N/A		N/A		N/A		N/A
Accrued interest receivable	15,319		15,319		—		—		15,319

Financial liabilities:
Deposits	4,646,679		—		4,646,552		—		4,646,552
Customer repurchase agreements	2,103		—		2,103		—		2,103
Federal Home Loan Bank advances	180,000		—		180,000		—		180,000
Paycheck Protection Program Liquidity Facility	27,144		—		27,144		—		27,144
Subordinated notes	106,957		—		110,045		—		110,045
Junior subordinated debentures	40,602		—		41,286		—		41,286
Accrued interest payable	1,951		1,951		—		—		1,951

For those financial instruments not previously described, the following methods and assumptions were used by the Company in estimating the fair values of financial instruments as disclosed herein:

Cash and Cash Equivalents

For financial instruments with a shorter term or with no stated maturity, prevailing market rates, and limited credit risk, the carrying amounts approximate fair value and are considered a Level 1 classification.

Securities held to maturity

The fair values of the Company’s investments in the subordinated notes of Trinitas IV, Trinitas V, and Trinitas VI classified as securities held to maturity are determined based on the securities’ discounted projected future cash flows (net present value), resulting in a Level 3 classification.

Loans

Loans include loans held for investment, excluding collateral dependent loans previously described above. For variable rate loans that reprice frequently and have no significant changes in credit risk, excluding previously presented collateral dependent loans measured at fair value on a non-recurring basis, fair values are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flow analyses. The discount rates used to determine the fair value of loans use interest rate spreads that reflect factors such as liquidity, credit, and nonperformance risk of the loans. These loans are considered a Level 3 classification.

The fair values of commercial loans in the Company’s liquid credit portfolio are determined based on quoted market prices in active markets and are considered a Level 1 classification.

FHLB and other restricted stock

FHLB and other restricted stock is restricted to member banks and there are restrictions placed on its transferability. As a result, the fair value of FHLB and other restricted stock was not practicable to determine.

Deposits

The fair values disclosed for demand deposits and non-maturity transaction accounts are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts) and are considered a Level 2 classification. Fair values for fixed rate time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on time deposits to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.

Customer repurchase agreements

The carrying amount of customer repurchase agreements approximates fair value due to their short-term nature. The customer repurchase agreement fair value is considered a Level 2 classification.

Federal Home Loan Bank advances

The Company’s FHLB advances have variable rates or a maturity of less than three months and therefore fair value materially approximates carrying value and is considered a Level 2 classification.

Paycheck Protection Program Liquidity Fund

The Company’s PPPLF borrowings correspond to PPP loans and are expected to be short-term in duration, therefore fair value materially approximates carrying value and is considered a Level 2 classification.

Subordinated notes

The subordinated notes were valued based on quoted market prices, but due to limited trading activity for the subordinated notes in these markets, the subordinated notes are considered a Level 2 classification.

Junior subordinated debentures

The junior subordinated debentures were valued by discounting future cash flows using current interest rates for similar financial instruments, resulting in a Level 2 classification.

Accrued Interest Receivable and Accrued Interest Payable

The carrying amounts of accrued interest receivable and accrued interest payable approximate their fair values given the short-term nature of the receivables and are considered a Level 1 classification.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related-Party Transactions

12 Months Ended

Dec. 31, 2022

Related-Party Transactions

RELATED-PARTY TRANSACTIONS

In the ordinary course of business, we have granted loans to executive officers, directors, and their affiliates were as follows:


	Years Ended December 31,
(Dollars in thousands)	2022		2021
Beginning balance	$	—	$	3,892
New loans and advances	—		—
Repayments and sales	—		(3,892)
Effect of changes in composition of related parties	—		—
Ending balance	$	—	$	—

At December 31, 2022 and 2021, there were no loans to executive officers, directors, or their affiliates that were considered non-performing or potential problem loans.

Deposits from executive officers, directors, and their affiliates at December 31, 2022 and 2021 were $25,364,000 and $34,111,000, respectively.

Regulatory Matters

12 Months Ended

Dec. 31, 2022

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Matters

REGULATORY MATTERSThe 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 December 31, 2022, the Company and TBK Bank meet all capital adequacy requirements to which they are subject.

As of 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 December 31, 2022 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:


	Actual		Minimum for Capital Adequacy Purposes		To Be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount	Ratio	Amount	Ratio	Amount	Ratio
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 of December 31, 2021
Total capital (to risk weighted assets)
Triumph Financial, Inc.	$769,475	14.1%	$436,582	8.0%	N/A	N/A
TBK Bank, SSB	$698,286	12.9%	$433,046	8.0%	$541,307	10.0%

Tier 1 capital (to risk weighted assets)
Triumph Financial, Inc.	$628,094	11.5%	$327,701	6.0%	N/A	N/A
TBK Bank, SSB	$665,336	12.3%	$324,554	6.0%	$432,739	8.0%

Common equity Tier 1 capital (to risk weighted assets)
Triumph Financial, Inc.	$542,492	9.9%	$246,587	4.5%	N/A	N/A
TBK Bank, SSB	$665,336	12.3%	$243,416	4.5%	$351,600	6.5%

Tier 1 capital (to average assets)
Triumph Financial, Inc.	$628,094	11.1%	$226,340	4.0%	N/A	N/A
TBK Bank, SSB	$665,336	11.8%	$225,538	4.0%	$281,922	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 December 31, 2022 and 2021. 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 December 31, 2022, the Company’s and TBK Bank’s risk based capital exceeded the required capital conservation buffer.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Stockholders' Equity

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS' EQUITY

The following summarizes the Company’s capital structure.

Preferred Stock Series C


	December 31,
(Dollars in thousands, except per share amounts)	2022			2021
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

On June 19, 2020, the Company issued 45,000 shares of 7.125% Series C Fixed-Rate Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, with a liquidation preference of $1,000 per share through an underwritten public offering of 1,800,000 depositary shares, each representing a 1/40th ownership interest in a share of the Series C Preferred Stock. Total gross proceeds from the preferred stock offering were $45,000,000. Net proceeds after underwriting discounts and offering expenses were $42,364,000. The net proceeds will be used for general corporate purposes.

Series C Preferred Stockholders are entitled to quarterly cash dividends accruing at the rate per annum of 7.125% beginning September 30, 2020, applied to the liquidation preference value of the stock. Any dividends not paid shall not accumulate but will be waived and not payable by the Company. Payments of dividends are subject to declaration by the board of the Company. The Series C Preferred Stock is not redeemable by the holder and is senior to the Company’s common stock. The Series C Preferred stock may be redeemed in whole or in part by the Company at liquidation value (i) on any dividend payment date on or after June 30, 2025 or (ii) within 90 days following a regulatory capital treatment event (as defined in the Statement of Designation), subject to regulatory approval.

Common Stock


	December 31,
(Dollars in thousands, except per share amounts)	2022		2021
Shares authorized	50,000,000		50,000,000
Shares issued	28,321,716		28,261,680
Treasury shares	(4,268,131)		(3,102,801)
Shares outstanding	24,053,585		25,158,879
Par value per share	$	0.01	$	0.01

Stock Repurchase Program

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 year ended December 31, 2022, the Company purchased 709,795 shares into treasury stock under the Company's stock repurchase program at an average price of $70.41, for a total of $50,000,000, completing the $50,000,000 stock repurchase program authorized by the Company's board of directors on February 7, 2022.

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 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, at the Company’s discretion.

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"). In December 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.

During the year ended December 31, 2020, the Company purchased 871,319 shares into treasury stock under the Company's stock repurchase program at an average price of $40.81, for a total of $35,600,000, effectively completing the $50,000,000 stock repurchase program authorized by the Company's board of directors on October 16, 2019.

There were no stock repurchases made under stock repurchase programs during the year ended December 31, 2021.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Section S99
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-Subparagraph (SX 210.3-04)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 505
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stock Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

STOCK BASED COMPENSATION

Stock based compensation expense that has been charged against income was $21,176,000, $20,315,000 and $4,618,000 for the years ended December 31, 2022, 2021, and 2020, 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 aggregate number of shares of common stock available for issuance under the Omnibus Incentive Plan is 2,450,000 shares.

Restricted Stock Awards

A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the year ended December 31, 2022 were as follows:


Nonvested RSAs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2022	363,404	$	67.56
Granted	12,471	74.42
Vested	(126,203)	61.74
Forfeited	(19,186)	76.93
Nonvested at December 31, 2022	230,486	$	70.34

RSAs granted to employees under the Omnibus Incentive Plan generally vest immediately or over four years, but vesting periods may vary. The fair value of shares vested during the years ended December 31, 2022, 2021, and 2020, totaled $8,918,000, $6,604,000, and $1,988,000, respectively. Compensation expense for RSAs will be recognized on an accelerated basis over the vesting period of the awards based on the fair value of the stock at the issue date. As of December 31, 2022, there was $5,580,000 of total unrecognized compensation cost related to nonvested RSAs. The cost is expected to be recognized over a remaining weighted average period of 2.27 years.

Restricted Stock Units

A summary of changes in the Company’s nonvested Restricted Stock Units (“RSUs”) under the Omnibus Incentive Plan for the year ended December 31, 2022 were as follows:


Nonvested RSUs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2022	122,470	$	52.07
Granted	91,849	69.44
Vested	—	—
Forfeited	(3,019)	64.00
Nonvested at December 31, 2022	211,300	$	59.45

RSUs granted to employees under the Omnibus Incentive Plan typically vest after four to five years. Compensation expense for the RSUs will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. As of December 31, 2022, there was $6,355,000 of unrecognized compensation cost related to the nonvested RSUs. The cost is expected to be recognized over a remaining period of 3.00 years.

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 year ended December 31, 2022 were as follows:


Nonvested Market Based PSUs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2022	94,984	$	43.68
Granted	33,276	84.22
Incremental shares earned	8,997	N/A
Vested	(20,996)	33.91
Forfeited	(3,775)	77.75
Nonvested at December 31, 2022	112,486	$	55.57

Market Based PSUs granted to employees under the Omnibus Incentive Plan vest after three to five years. The number of shares issued upon vesting will range from 0% to 175% of the shares granted based on the Company’s relative total shareholder return (“TSR”) as compared to the TSR of a specified group of peer banks. Compensation expense for the Market Based PSUs will be recognized over the vesting period of the awards based on the fair value of the award at the grant date. The fair value of Market Based PSUs granted is estimated using a Monte Carlo simulation.

The fair value of the Market Based PSUs granted was determined using the following weighted average assumptions:


	Year Ended December 31,
	2022			2021			2020
Grant date	May 1, 2022			May 1, 2021			May 1, 2020
Performance period	3.00 years			3.00 years			3.00 years
Stock price	$	69.44		$	88.63		$	26.25
Stock price volatility	55.17		%	51.71		%	43.02		%
Risk-free rate	2.84		%	0.35		%	0.25		%

Expected volatilities were determined based on the historical volatilities of the Company and the specified peer group. The risk-free interest rate for the performance period was derived from the Treasury constant maturities yield curve on the valuation date.

The fair value of shares vested during the year ended December 31, 2022 totaled $1,458,000. No Market Based PSUs vested during the years ended December 31, 2021 and 2020. As of December 31, 2022, there was $2,661,000 of unrecognized compensation cost related to the nonvested Market Based PSUs. The cost is expected to be recognized over a remaining period of 2.00 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 year ended December 31, 2022 were as follows:


Nonvested Performance Based PSUs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2022	259,383	$	39.32
Granted	3,000	69.44
Vested	—	—
Forfeited	(6,645)	43.03
Nonvested at December 31, 2022	255,738	$	39.57

Performance Based PSUs granted to employees under the Omnibus Incentive Plan vest within 30 days after the conclusion of a three year performance period. Under the terms of the agreement, the number of shares issued upon vesting will range from 0% to 200% of the shares granted based on the Company’s cumulative diluted earnings per share over the performance period. Compensation expense for the Performance Based PSUs is estimated each period based on the fair value of the stock at the grant date and the most probable outcome of the performance condition, adjusted for the passage of time within the vesting period of the awards.

The performance period for the outstanding Performance Based PSUs ended on December 31, 2022. The number of shares to be issued upon vesting for these awards is 363,150 shares, or 142% of the target shares granted.

During the years ended December 31, 2022 and 2021, the Company recognized $6,966,000 and $7,405,000, respectively, of stock based compensation expense related to Performance based PSUs. As of December 31, 2022, there was no unrecognized compensation cost related to the nonvested Performance Based PSUs.

Stock Options

A summary of changes in the Company’s stock options under the Omnibus Incentive Plan for the year ended December 31, 2022 were as follows:


Stock Options	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value (In Thousands)
Outstanding at January 1, 2022	166,755	$	33.34
Granted	35,939	69.44
Exercised	(3,797)	26.12
Forfeited	(3,499)	69.44
Expired	—	—
Outstanding at December 31, 2022	195,398	$	39.48	6.10	$	3,176

Fully vested shares and shares expected to vest at December 31, 2022	195,398	$	39.48	6.10	$	3,176

Shares exercisable at December 31, 2022	128,958	$	29.10	4.90	$	2,717

Information related to the stock options for the years ended December 31, 2022, 2021, and 2020 was as follows:


	Year Ended December 31,
(Dollars in thousands, except per share amounts)	2022		2021		2020
Aggregate intrinsic value of options exercised	$	280	$	5,304	$	940
Cash received from option exercises, net	$	(74)	$	577	$	(227)
Tax benefit realized from option exercises	$	59	$	1,114	$	197
Weighted average fair value of options granted (per share)	$	32.15	$	35.37	$	8.85
Fair value of vested awards	$	423	$	381	$	471

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 years contractual terms. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model.

The fair value of the stock options granted was determined using the following weighted average assumptions:


	2022		2021		2020
Risk-free interest rate	2.77	%	1.16	%	0.46	%
Expected term	6.25 years		6.25 years		6.25 years
Expected stock price volatility	43.33	%	39.26	%	33.83	%
Dividend yield	—		—		—

Beginning in 2022, expected volatilities are determined based on the Company’s historical volatility. Prior to 2022, expected volatilities were determined based on a blend of the Company’s historical volatility and historical volatilities of a peer group of companies with a similar size, industry, stage of life cycle, and capital structure. The expected term of the options granted was 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 was derived from the Treasury constant maturity yield curve on the valuation date.

As of December 31, 2022, there was $790,000 of unrecognized compensation cost related to nonvested stock options. The cost is expected to be recognized over a remaining weighted average period of 3.06 years.

Employee Stock Purchase PlanDuring the year ended December 31, 2019, the Company’s Board of Directors adopted, and the Company’s stockholders approved, the Company's 2019 Employee Stock Purchase Plan (“ESPP”). Under the ESPP, 2,500,000 shares of common stock were reserved for issuance. The ESPP enables eligible employees to purchase the Company’s common stock at a price per share equal to 85% of the lower of the fair market value of the common stock at the beginning or end of each six month offering period. The first offering period commenced on February 1, 2021, and during the years ended December 31, 2022 and 2021, 24,516 and 9,101 shares were issued under the plan, respectively.

Parent Company Only Condensed Financial Information

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Parent Company Only Condensed Financial Information

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

The following tables present parent company only condensed financial information.

Condensed Parent Company Only Balance Sheets:


(Dollars in thousands)	December 31, 2022		December 31, 2021
ASSETS
Cash and cash equivalents	$	92,338	$	64,530
Securities - held to maturity	4,077		4,947
Investment in bank subsidiary	943,084		938,255
Investment in non-bank subsidiaries	194		894
Other assets	4,568		479
Total assets	$	1,044,261	$	1,009,105
LIABILITIES AND EQUITY
Subordinated notes	$	107,800	$	106,957
Junior subordinated debentures	41,158		40,602
Intercompany payables	365		128
Accrued expenses and other liabilities	5,967		2,554
Total liabilities	155,290		150,241
Stockholders' equity	888,971		858,864
Total liabilities and equity	$	1,044,261	$	1,009,105

Condensed Parent Company Only Statements of Income:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Interest income	$	174	$	100	$	270
Interest expense	(7,874)		(8,220)		(7,477)
Credit loss (expense) benefit	(362)		(56)		(1,899)
Other income	80		53		(20)
Salaries and employee benefits expense	(729)		(618)		(606)
Other expense	(2,701)		(2,379)		(2,376)
Income (loss) before income tax and income from subsidiaries	(11,412)		(11,120)		(12,108)
Income tax (expense) benefit	2,150		2,202		2,631
Dividends from subsidiaries and equity in undistributed subsidiary income	111,573		121,892		73,501
Net income	102,311		112,974		64,024
Dividends on preferred stock	(3,206)		(3,206)		(1,701)
Net income available to common stockholders	$	99,105	$	109,768	$	62,323
Comprehensive income attributable to Parent	$	87,377	$	115,189	$	68,737

Condensed Parent Company Only Statements of Cash Flows:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Cash flows from operating activities:
Net income	$	102,311	$	112,974	$	64,024
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed subsidiary income	1,427		(121,892)		(58,501)
Net accretion of securities	(171)		(87)		(221)
Amortization of junior subordinated debentures	556		530		506
Amortization of subordinated notes issuance costs	843		1,224		182
Stock based compensation	686		420		315
Credit loss expense (benefit)	362		56		1,900
Change in other assets	(4,089)		387		337
Change in accrued expenses and other liabilities	3,650		546		505
Net cash provided by (used in) operating activities	105,575		(5,842)		9,047
Cash flows from investing activities:
Investment in subsidiaries	—		3,383		146
Proceeds from maturities, calls, and pay downs of securities held to maturity	679		1,003		693
Net change in loans	—		—		719
Net cash provided by (used in) investing activities	679		4,386		1,558
Cash flows from financing activities:
Proceeds from issuance of subordinated notes, net	—		68,224		—
Repayment of subordinated notes	—		(50,000)		—

Issuance of preferred stock, net of issuance costs	—		—		42,364
Dividends on preferred stock	(3,206)		(3,206)		(1,701)
Purchase of treasury stock	(76,714)		(1,241)		(35,772)
Stock option exercises	(74)		577		(227)
Proceeds from employee stock purchase plan common stock issuance	1,548		449		—
Net cash provided by (used in) financing activities	(78,446)		14,803		4,664
Net increase (decrease) in cash and cash equivalents	27,808		13,347		15,269
Cash and cash equivalents at beginning of period	64,530		51,183		35,914
Cash and cash equivalents at end of period	$	92,338	$	64,530	$	51,183

Earnings Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The factors used in the earnings per share computation follow:


	Year Ended December 31,
(Dollars in thousands)	2022		2021		2020
Basic
Net income to common stockholders	$	99,105	$	109,768	$	62,323
Weighted average common shares outstanding	24,393,954		24,736,713		24,387,932
Basic earnings per common share	$	4.06	$	4.44	$	2.56

Diluted
Net income to common stockholders	$	99,105	$	109,768	$	62,323
Weighted average common shares outstanding	24,393,954		24,736,713		24,387,932
Dilutive effects of:
Assumed exercises of stock options	90,841		130,198		64,104
Restricted stock awards	148,630		170,276		86,498
Restricted stock units	98,139		76,049		25,978
Performance stock units - market based	122,123		136,199		51,304
Performance stock units - performance based	167,187		—		—
Employee stock purchase plan	2,694		2,617		—
Average shares and dilutive potential common shares	25,023,568		25,252,052		24,615,816
Diluted earnings per common share	$	3.96	$	4.35	$	2.53

Shares that were not considered in computing diluted earnings per common share because they were antidilutive or have not met the thresholds to be considered in the dilutive calculation are as follows:


	Year Ended December 31,
	2022	2021	2020
Stock options	49,379	16,939	64,947
Restricted stock awards	6,348	8,463	—
Restricted stock units	11,250	15,000	—
Performance stock units - market based	45,296	—	—
Performance stock units - performance based	—	259,383	256,625
Employee stock purchase plan	—	—	—

Business Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION

The following presents the Company’s operating segments. The accounting policies of the segments are substantially the same as those described in Note 1 – Summary of Significant Accounting Policies. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring segment and the Payments segment (when the Payments segment is not self-funded) based on Federal Home Loan Bank advance rates. When the Payments segment is self-funded with funding in excess of its factored receivables, intersegment interest income is allocated based on the Federal Funds effective rate. Credit loss expense is allocated based on the segment’s allowance for credit losses determination. Noninterest income and expense directly attributable to a segment are assigned accordingly. The majority of salaries and benefits expense for our executive leadership team as well as other selling, general, and administrative shared services costs, including a significant amount of information technology expense, are allocated to the Banking 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)
Year Ended December 31, 2022	Banking		Factoring		Payments		Corporate		Consolidated
Total interest income	$	195,871	$	207,114	$	16,079	$	175	$	419,239
Intersegment interest allocations	9,567		(9,444)		(123)		—		—
Total interest expense	10,873		—		—		7,874		18,747
Net interest income (expense)	194,565		197,670		15,956		(7,699)		400,492
Credit loss expense (benefit)	2,753		2,895		218		1,059		6,925
Net interest income (expense) after credit loss expense	191,812		194,775		15,738		(8,758)		393,567
Noninterest income	41,096		22,272		20,620		80		84,068
Noninterest expense	186,770		87,197		63,231		3,433		340,631
Operating income (loss)	$	46,138	$	129,850	$	(26,873)	$	(12,111)	$	137,004


(Dollars in thousands)
Year Ended December 31, 2021	Banking		Factoring		Payments		Corporate		Consolidated
Total interest income	$	189,621	$	185,741	$	12,093	$	100	$	387,555
Intersegment interest allocations	10,389		(9,878)		(511)		—		—
Total interest expense	10,205		—		—		8,220		18,425
Net interest income (expense)	189,805		175,863		11,582		(8,120)		369,130
Credit loss expense (benefit)	(19,016)		9,691		438		57		(8,830)
Net interest income (expense) after credit loss expense	208,821		166,172		11,144		(8,177)		377,960
Noninterest income	33,447		13,005		7,451		598		54,501
Noninterest expense	169,114		74,768		39,769		3,856		287,507
Operating income (loss)	$	73,154	$	104,409	$	(21,174)	$	(11,435)	$	144,954


(Dollars in thousands)
Year Ended December 31, 2020	Banking		Factoring		Payments		Corporate		Consolidated
Total interest income	$	207,978	$	109,391	$	4,474	$	272	$	322,115
Intersegment interest allocations	12,815		(12,371)		(444)		—		—
Total interest expense	29,910		—		—		7,477		37,387
Net interest income (expense)	190,883		97,020		4,030		(7,205)		284,728
Credit loss expense (benefit)	20,217		16,042		172		1,898		38,329
Net interest income (expense) after credit loss expense	170,666		80,978		3,858		(9,103)		246,399
Gain on sale of subsidiary or division	9,758		—		—		—		9,758
Other noninterest income	29,379		21,010		125		113		50,627
Noninterest expense	151,115		54,011		12,880		4,068		222,074
Operating income (loss)	$	58,688	$	47,977	$	(8,897)	$	(13,058)	$	84,710

Total assets and gross loans below include intersegment loans, which eliminate in consolidation.


(Dollars in thousands)
December 31, 2022	Banking		Factoring		Payments		Corporate		Eliminations		Consolidated
Total assets	$	4,931,666	$	1,250,476	$	371,948	$	1,040,175	$	(2,260,482)	$	5,333,783
Gross loans	$	3,576,216	$	1,151,727	$	85,722	$	—	$	(693,374)	$	4,120,291


(Dollars in thousands)
December 31, 2021	Banking		Factoring		Payments		Corporate		Eliminations		Consolidated
Total assets	$	5,568,826	$	1,679,495	$	293,212	$	1,009,998	$	(2,595,281)	$	5,956,250
Gross loans	$	4,444,136	$	1,546,361	$	153,176	$	700	$	(1,276,801)	$	4,867,572

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Accelerated Share Repurchase 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. 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. Subject to certain adjustments pursuant to the ASR agreement, the final number of shares repurchased and delivered under the ASR agreement will be based on the volume weighted average share price of the Company’s common stock during the term of the transaction, which is expected to be completed in the second quarter of 2023. 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.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Nature of Operations	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. On December 1, 2022 we completed an extensive marketing rebranding effort, including a change of the company name from Triumph Bancorp, Inc. to Triumph Financial, Inc. and a change of our factoring subsidiary's company name from Triumph Business Capital LLC to Triumph Financial Services LLC ("Triumph Financial Services"). Said rebranding efforts had no impact to the composition of legal entities, financial reporting, employee roles, management structure, or work activities and expectations. On June 30, 2020, the Company sold the assets of Triumph Premium Finance (“TPF”) and exited its premium finance line of business. TPF operated within the Company’s TBK Bank subsidiary. See Note 2 – Acquisitions and Divestitures for additional information pertaining to the TPF sale and the impact of the transaction on the Company’s consolidated financial statements.
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The Company consolidates subsidiaries in which it holds, directly or indirectly, a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity under U.S. generally accepted accounting principles (“GAAP”). Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has at least a majority of the voting interest. Variable interest entities (“VIEs”) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. In consolidation, all significant intercompany accounts and transactions are eliminated. Investments in unconsolidated entities are accounted for using the equity method of accounting when the Company has the ability to exercise significant influence over operating and financing decisions. Investments that do not meet the criteria for equity method accounting are accounted for using the cost method of accounting. The accounting and reporting policies of the Company and its subsidiaries conform to GAAP and general practice within the banking industry. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The Company uses the accrual basis of accounting for financial reporting purposes.
Use of Estimates	Use of Estimates To prepare financial statements in conformity with GAAP management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.
Cash and Cash Equivalents	Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, other short-term investments and federal funds sold. All highly liquid investments with an initial maturity of less than 90 days are considered to be cash equivalents. Certain items, including loan and deposit transactions, customer repurchase agreements, and FHLB advances and repayments, are presented net in the statement of cash flows.
Debt Securities	Debt Securities The Company determines the classification of debt securities at the time of purchase. Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Debt securities not classified as held to maturity or trading are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss), net of tax. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method. Amortization of premiums and discounts are recognized in interest income over the period to maturity using the interest method, except for premiums on callable debt securities, which are amortized to their earliest call date. The Company has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest in other assets in the consolidated balance sheets. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on nonaccrual is reversed against interest income. There was no accrued interest related to debt securities reversed against interest income for the years ended December 31, 2022, 2021 and 2020. Allowance for Credit Losses – Available for Sale Securities For available for sale debt securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired available for sale debt security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in such a situation. In evaluating available for sale debt securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable is excluded from the estimate of credit losses. Allowance for Credit Losses – Held to Maturity Securities The allowance for credit losses on held to maturity securities is estimated on a collective basis by major security type. At December 31, 2022 and 2021, the Company’s held to maturity securities consisted of 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. Accrued interest receivable is excluded from the estimate of credit losses.
Equity Securities	Equity Securities Equity securities are recorded at fair value, with unrealized gains and losses included in earnings. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method.
Loans Held for Sale	Loans Held for Sale The Company elects the fair value option for recording 1-4 family residential mortgage loans and commercial loans held for sale. The fair value of loans held for sale is determined based on outstanding commitments from investors to purchase such loans or prevailing market rates. Increases or decreases in the fair value of loans held for sale, if any, are charged to earnings and are recorded in noninterest income in the consolidated statements of income. Gains and losses on sales of loans are based on the difference between the final selling price and the carrying value of the related loan sold. Mortgage loans held for sale are generally sold with servicing rights released. Management occasionally transfers loans held for investment to loans held for sale. Gains or losses on the transfer of loans to loans held for sale are recorded in noninterest income in the consolidated statements of income unless such loans have experienced a decline in fair value due to credit quality concerns. For such transfers experiencing a decline in fair value due to credit quality, the Company first applies its charge-off policy which requires recognizing the confirmed loss via a charge-off against the allowance for credit losses which is measured as the excess of the loan's amortized cost basis over the loan's fair value. The charge-off is reflected as a write-down of the loan resulting in a new amortized cost basis. To the extent that the loan’s fair value loss has not already been provided for in the allowance for credit losses, an additional credit loss expense is made to provide sufficient allowance to absorb the charge-off. If the allowance for credit losses amount on the transferred loan at the transfer date to the held for sale category exceeds the amount of the charge-off, any remaining excess allowance for credit loss is reversed into earnings through credit loss expense. After the write-down is taken, the loans is transferred from held to investment to held for sale at its new amortized cost basis which approximate fair value.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their amortized cost basis, which is the unpaid principal balance outstanding, net of unearned income, deferred loan fees and costs, premiums and discounts associated with acquisition date fair value adjustments on acquired loans, and any direct principal charge-offs. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in other assets on consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the remaining life of the loan without anticipating prepayments. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful. The accrual of interest income on loans is typically discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection, or if full collection of interest or principal becomes uncertain. Consumer loans are typically charged off no later than 120 days past due. All interest accrued but not received for a loan placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Factored Receivables The Company purchases invoices from its factoring clients in schedules or batches. To a much lesser extent, the Company will also make short-term advances to its clients on transportation contracts for upcoming loads. Cash is advanced to the client to the extent of the applicable advance rate, less fees, as set forth in the individual factoring agreements. The face value of the invoices purchased or amount advanced is recorded by the Company as factored receivables, and the unadvanced portions of the invoices purchased, less fees, are considered client reserves. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits in the consolidated balance sheets. Unearned factoring fees and unearned net origination fees are deferred and recognized over the weighted average collection period for each client. Subsequent factoring fees are recognized in interest income as incurred by the client and deducted from the clients’ reserve balances. Other factoring-related fees, which include wire transfer fees, carrier payment fees, fuel advance fees, and other similar fees, are reported by the Company as non-interest income. Acquired Loans Acquired loans are recorded at fair value at the date of acquisition based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Certain larger purchased loans are individually evaluated while certain purchased loans are grouped together according to similar risk characteristics and are treated in the aggregate when applying various valuation techniques. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. Prior to January 1, 2020, loans acquired in a business combination that had evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considered various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” was recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” were not recognized on the balance sheet and did not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment were recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows were recognized as impairment. Valuation allowances on PCI loans reflected only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately were not to be received). Subsequent to January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. All loans considered to be PCI prior to January 1, 2020 were converted to PCD on that date. For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income or expense on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. Allowance for Credit Losses – Loans The Company adopted the current expected credit loss model under Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) on January 1, 2020 using the modified retrospective approach. The Company recorded a net reduction of retained earnings of $1,770,000 upon adoption. The transition adjustment included an increase in the allowance for credit losses on loans of $269,000, an increase in the allowance for credit losses on held to maturity debt securities of $126,000, and an increase in the allowance for credit losses on off-balance sheet credit exposures of $1,918,000, net of the corresponding increases in deferred tax assets of $543,000. Under the current expected credit loss model adopted by the Company on January 1, 2020, the allowance for credit losses on loans is a valuation allowance estimated at each balance sheet date in accordance with US GAAP that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The Company estimates the ACL on loans based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL. Expected credit losses are reflected in the allowance for credit losses through a charge to credit loss expense. When the Company deems all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible; however, generally speaking, an asset will be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the ACL when received. The Company measures expected credit losses of financial assets on a collective (pool) basis, when the financial assets share similar risk characteristics. Depending on the nature of the pool of financial assets with similar risk characteristics, the Company uses a discounted cash flow (“DCF”) method or a loss-rate method to estimate expected credit losses. The Company’s methodologies for estimating the ACL consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. The Company’s methodologies revert back to historical loss information on a straight-line basis over eight quarters when it can no longer develop reasonable and supportable forecasts. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: Commercial Real Estate — This category of loans consists of the following loan types: Non-farm Non-residential — This category includes real estate loans for a variety of commercial property types and purposes, including owner occupied commercial real estate loans primarily secured by commercial office or industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. Repayment terms vary considerably, interest rates are fixed or variable, and are structured for full, partial, or no amortization of principal. This category also includes investment real estate loans that are primarily secured by office and industrial buildings, warehouses, small retail shopping centers and various special purpose properties. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Multi-family residential — Investment real estate loans are primarily secured by non-owner occupied apartment or multifamily residential buildings. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Construction, land development, land —This category of loans consists of loans to finance the ground up construction, improvement and/or carrying for sale after the completion of construction of owner occupied and non-owner occupied residential and commercial properties, and loans secured by raw or improved land. The repayment of construction loans is generally dependent upon the successful completion of the improvements by the builder for the end user, or sale of the property to a third-party. Repayment of land secured loans are dependent upon the successful development and sale of the property, the sale of the land as is, or the outside cash flow of the owners to support the retirement of the debt. 1-4 family residential — This category of loans includes both first and junior liens on residential real estate. Home equity revolving lines of credit and home equity term loans are included in this group of loans. Farmland — These loans are principally loans to purchase farmland. Commercial — Commercial loans are loans for commercial, corporate and business purposes. The Company’s commercial business loan portfolio is comprised of loans for a variety of purposes and across a variety of industries. These loans include general commercial and industrial loans, loans to purchase capital equipment, agriculture operating loans and other business loans for working capital and operational purposes. Commercial loans are generally secured by accounts receivable, inventory and other business assets. Also included in commercial loans are our Paycheck Protection ("PPP") loans originated during 2020 and 2021. Equipment — Equipment finance loans are commercial loans primarily secured by new or used revenue producing, essential-use equipment from major manufacturers that is movable, may be used in more than one type of business, and generally has broad resale markets. Core markets include transportation, construction, and waste. Loan terms do not exceed the economic life of the equipment and typically are 60 months or less. Asset-based Lending — These loans are originated to borrowers to support general working capital needs. The asset-based loan structure involves advances of loan proceeds against a borrowing base which typically consists of accounts receivable, identified readily marketable inventory, or other collateral of the borrower. The maximum amount a customer may borrow at any time is fixed as a percentage of the borrowing base outstanding. Liquid Credit — Broadly syndicated leveraged loans secured by a variety of collateral types. Factored Receivables — The Company operates as a factor by purchasing accounts receivable from its clients, then collecting the receivable from the account debtor. The Company’s smaller factoring relationships are typically structured as “non-recourse” relationships (i.e., the Company retains the credit risk associated with the ability of the account debtor on a purchased invoice to ultimately make payment) and the Company’s larger factoring relationships are typically structured as “recourse” relationships (i.e., the Company’s client agrees to repurchase any invoices for which payment is not ultimately received from the account debtor). Advances initially made to the client to acquire the receivables are typically at a discount to the invoice value. The discount balance is held in client reserves, net of the Company’s compensation. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits. Consumer — Loans used for personal use, typically on an unsecured basis, and client overdrafts. Mortgage Warehouse — Mortgage Warehouse facilities are provided to unaffiliated mortgage origination companies and are collateralized by 1-4 family residential loans. The originator closes new mortgage loans with the intent to sell these loans to third-party investors for a profit. The Company provides funding to the mortgage companies for the period between the origination and their sale of the loan. The Company has a policy that requires that it separately validate that each residential mortgage loan was underwritten consistent with the underwriting requirements of the final investor or market standards prior to advancing funds. The Company is repaid with the proceeds received from sale of the mortgage loan to the final investor. Discounted Cash Flow Method The Company uses the discounted cash flow method to estimate expected credit losses for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit), and consumer loan pools. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery tends to be less sensitive than other assumptions and such assumptions are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes and forecasts national unemployment as a loss driver. Management also utilizes and forecasts either one-year percentage change in national retail sales, one-year percentage change in the national home price index, or one-year percentage change in national gross domestic product 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. For all DCF models, management 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. Management 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 management when developing the forecast metrics. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An ACL is established for the difference between the instrument’s NPV and amortized cost basis. Loss-Rate Method The Company uses a loss-rate method to estimate expected credit losses for the farmland, liquid credit, premium finance, 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 management'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. Collateral Dependent Financial Assets Loans the Company has identified as collateral dependent that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets, the ACL is measured based on the difference between the fair value of the collateral plus other sources of repayment and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. 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 unless the Company has identified an expected troubled debt restructuring. A loan that has been modified or renewed is considered a troubled debt restructuring (“TDR”) when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed non-performing TDRs are evaluated individually to determine the required ACL. TDRs performing in accordance with their modified contractual terms for a reasonable period of time may be included in the Company’s existing pools based on the underlying risk characteristics of the loan to measure the ACL. Paycheck Protection Program ("PPP") With the passage of the PPP, the Company has actively participated in assisting its customers with applications for loans through the program. Loans funded through the PPP program are fully guaranteed by the U.S. government subject to certain representations and warranties. This guarantee exists at the inception of the loans and throughout the lives of the loans and was not entered into separately and apart from the loans. ASC 326 requires credit enhancements that mitigate credit losses, such as the U.S. government guarantee on PPP loans, to be considered in estimating credit losses. The guarantee is considered “embedded” and, therefore, is considered when estimating credit loss on the PPP loans. Given that the loans are fully guaranteed by the U.S. government and absent any specific loss information on any of our PPP loans, the Company did not carry an ACL on its PPP loans at December 31, 2022 and 2021. The balance of PPP loans at December 31, 2022 was insignificant. Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, commitments to purchase broadly syndicated loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to credit loss expense in the Company’s consolidated statements of income. The ACL on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in other liabilities on the Company’s consolidated balance sheets.
Federal Home Loan Bank ("FHLB") Stock	Federal Home Loan Bank (“FHLB”) Stock The Company is a member of the FHLB system. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, is restricted as to redemption, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.
Premises and Equipment	Premises and Equipment Land is carried at cost. Depreciable assets are stated at cost less accumulated depreciation. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Buildings and related components are generally depreciated using the straight-line method with useful lives ranging from five to forty years. Automobiles are depreciated using the straight-line method with five year useful lives, and the aircraft is depreciated using an accelerated method with a twenty year useful life. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from three to ten years. The Company leases certain properties and equipment under operating leases. The Company recognizes a liability to make lease payments, the “lease liability”, and an asset representing the right to use the underlying asset during the lease term, the “right-of-use asset”. The lease liability is measured at the present value of the remaining lease payments, discounted at the Company’s incremental borrowing rate. The right-of-use asset is measured at the amount of the lease liability adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the right-of-use-asset. Operating lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the lease liability, and any impairment of the right-of-use asset. Certain of the Company’s leases contain options to renew the lease; however, these renewal options are not included in the calculation of the lease liabilities as they are not reasonably certain to be exercised. The Company’s leases do not contain residual value guarantees or material variable lease payments. The Company does not have any material restrictions or covenants imposed by leases that would impact the Company’s ability to pay dividends or cause the Company to incur additional financial obligations. The Company has made an accounting policy election to not apply the recognition requirements to short-term leases. The Company has also elected to use the practical expedient to make an accounting policy election for property leases to include both lease and non-lease components as a single component and account for it as a lease. The Company’s leases are not complex; therefore there were no significant assumptions or judgements made as part of the determination of whether the contracts contained a lease, the allocation of consideration in the contracts between lease and non-lease components, and the determination of the discount rates for the leases.
Foreclosed Assets	Foreclosed Assets Assets acquired through loan foreclosure are initially recorded at fair value less costs to sell, establishing a new cost basis. Any write-down in the carrying value of a property at the time of acquisition is charged-off to the allowance for loan and lease losses. After foreclosure, foreclosed assets are carried at the lower of the recorded investment in the asset or the fair value less costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed.
Goodwill	Goodwill Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. The Company evaluates goodwill for impairment on an annual basis or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount. The Company’s annual goodwill impairment testing date is October 1. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining the need to perform the test for goodwill impairment (the qualitative method). If the qualitative method cannot be used or if it determines, based on the qualitative method, that the fair value is more likely than not less than the carrying amount, the Company compares the estimated fair value of a reporting unit with its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, the Company will record an impairment charge based on that difference. Our annual goodwill impairment test did not identify any goodwill impairment for the years ended December 31, 2022, 2021 and 2020.
Identifiable Intangible Assets	Identifiable Intangible Assets Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. The Company's intangible assets primarily relate to core deposits, customer relationships and software. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value with a charge to amortization of intangible assets. Intangible assets with indefinite lives are not significant.
Software Developed for Internal Use	Software Developed for Internal Use The Company capitalizes internal and external costs related to internal-use software during the application development stage, including consulting costs and compensation expenses related to employees who devote time to the development of the projects. The Company records capitalized software development costs in other assets in the Consolidated Balance Sheets. Costs incurred in preliminary stages of development activities and post implementation activities are expensed in the period incurred. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Once the software is substantially complete and ready for its intended use, capitalization ceases and the asset is amortized straight line over its estimated useful life, which ranges between three and five years.
Bank Owned Life Insurance	Bank Owned Life Insurance The Company has purchased life insurance policies on certain key employees. The purchase of these life insurance policies allows the Company to use tax-advantaged rates of return. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
Derivative Financial Instruments	Derivative Financial Instruments The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. The Company did not have any derivatives at December 31, 2022. At December 31, 2021, the Company had one cash flow hedge position and no fair value or foreign currency hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. Unrealized gains or losses are reported as other comprehensive income or loss. To qualify for the use of hedge accounting, a derivative must be effective at inception and expected to be continuously effective in offsetting the risk being hedged. A statistical regression analysis is performed at inception and at each reporting period thereafter to evaluate hedge effectiveness. In accordance with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
Income Taxes	Income Taxes The Company files a consolidated tax return with its subsidiaries and is taxed as a C corporation. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and penalties related to income tax matters in income tax expense.
Fair Values of Financial Instruments	Fair Values of Financial Instruments In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that may use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and/or the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Changes in assumptions or in market conditions could significantly affect these estimates. In the ordinary course of business, the Company generally does not sell or transfer non-impaired loans and deposits. As such, the disclosures that present the December 31, 2022 and 2021 estimated fair value for non-impaired loans and deposits are judgmental and may not represent amounts to be received if the Company were to sell or transfer such items.
Revenue from Contracts with Customers	Revenue from Contracts with Customers The 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. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. 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. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers. The Company presents disaggregated revenue from contracts with customers in the consolidated statements of income. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. 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. These fees totaled $13,694,000, $7,451,000, and $127,000 for the years ended December 31, 2022, 2021, and 2020, respectively. These fees are generally variable and 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 obligation. •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.
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 considered 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. Included in noninterest expense of the Banking segment is the majority of salaries and benefits expense for our executive leadership team and other selling, general, and administrative shared services costs, including a significant amount of information technology expense. 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 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 both invoices where we offer a carrier a quick pay 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 and from 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. The corporate segment includes holding company financing and investment activities and management and administrative expenses to support the overall operations of the Company. Prior to June 30, 2021, management determined that the Company had three reportable segments consisting of Banking, Factoring, and Corporate, and the Banking segment included the operations of TBK Bank and TriumphPay. On June 1, 2021, TriumphPay acquired HubTran, Inc., a cloud-based provider of automation software for the trucking industry’s back office. See Note 2 – Acquisitions and Divestitures for further disclosures regarding the acquisition of HubTran. The acquisition of HubTran allows TriumphPay to create a payments network for trucking. TriumphPay already offered tools and services to provide automation, mitigate fraud, and create back-office efficiency. Through the acquisition of HubTran, TriumphPay created additional value through building upon its presentment, audit, and payment capabilities for shippers, third party logistics companies (i.e., freight brokers) and their carriers, and factors. The acquisition of HubTran was an inflection point in the operations of TriumphPay as the TriumphPay strategy has shifted from a capital-intensive on-balance sheet product with a focus on interest income to a payments network for the trucking industry with a focus on fee revenue. In terms of total revenue, operating income (loss), and total assets, TriumphPay had historically been quantitatively immaterial; however, given the shift in strategy brought on by the acquisition of HubTran as well as management and chief operating decision maker focus on TriumphPay operations, management believes disclosing TriumphPay's operations through the Payments segment is qualitatively useful for readers of these financial statements. This change also brings the Company's reportable segments in line with its reporting units used for goodwill impairment evaluation. Prior to the acquisition of HubTran, the Payments reporting unit carried no goodwill. Prior period business segment disclosures have been revised as appropriate to reflect the prior period change in reportable segments.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income includes unrealized gains and losses on debt securities available for sale and cash flow hedges, net of taxes, which are also recognized as a separate component of equity.
Loss Contingencies	Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe such matters exist that will have a material effect on the financial statements.
Transfers of Financial Assets	Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be relinquished when (i) the assets have been isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the transferee to return specific assets.
Stock-Based Compensation	Stock Based Compensation Compensation cost is recognized for stock based payment awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, a Monte Carlo simulation is utilized to estimate the fair value of market based performance stock units, and the market price of the Company’s common stock at the date of grant is used for restricted stock awards, restricted stock units, and performance based performance stock units. Compensation cost is recognized over the required service period, generally defined as the vesting period. The Company recognizes forfeitures of nonvested awards as they occur.
Earnings Per Common Share	Earnings Per Common Share Basic earnings per common share is net income less dividends on preferred stock divided by the weighted average number of common shares outstanding during the period excluding nonvested restricted stock awards. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock warrants, restricted stock, stock options, and preferred shares that are convertible to common shares.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred.
Adoption of New Accounting Standards and Newly Issued, But Not Yet Effective Accounting Standards	Adoption of New Accounting Standards On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. Section 4013 of the CARES Act, “Temporary Relief From Troubled Debt Restructurings,” provides banks the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (“TDR”) for a limited period of time to account for the effects of COVID-19. To qualify for Section 4013 of the CARES Act, borrowers must have been current at December 31, 2019. All modifications are eligible so long as they are executed between March 1, 2020 and the earlier of (i) December 31, 2020, or (ii) the 60th day after the end of the COVID-19 national emergency declared by the President of the U.S. Multiple modifications of the same credits are allowed and there is no cap on the duration of the modification. On December 21, 2020, certain provisions of the CARES Act, including the temporary suspension of certain requirements related to TDRs, were extended through December 31, 2021. See Note 4 – Loans and Allowance for Credit Losses for disclosure of the impact to date. In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by the Coronavirus. The interagency statement was effective immediately and impacted accounting for loan modifications. Under Accounting Standards Codification 310-40, “Receivables – Troubled Debt Restructurings by Creditors,” (“ASC 310-40”), a restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grands a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. Almost all of the Company’s modifications fall under Section 4013 of the CARES Act and thus, the interagency statement has had very little impact on the Company to date. In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides temporary optional relief for contracts modified as a result of reference rate reform meeting certain modification criteria, generally allowing an entity to account for contract modifications occurring due to reference rate reform as an event that does not require contract remeasurement or reassessment of a previous accounting determination at the modification date. The guidance also includes temporary optional expedients intended to provide relief from various hedge effectiveness requirements for hedging relationships affected by reference rate reform, provided certain criteria are met, and allows a one-time election to sell or transfer to either available-for-sale or trading any held-to-maturity ("HTM") debt securities that refer to an interest rate affected by reference rate reform and were classified as HTM prior to January 1, 2020. Additionally, in January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which provided additional clarification that certain optional expedients and exceptions noted above apply to derivative instruments that use an interest rate for margining, discounting or contract price alignment that is modified as a result of reference rate reform. This guidance was effective upon issuance and can be applied prospectively, with certain exceptions, through December 31, 2022. The adoption of this ASU did not significantly impact our consolidated financial statements. In November 2020, federal and state banking regulators issued the “Interagency Policy Statement on Reference Rates for Loans" to reiterate that a specific replacement rate for loans impacted by reference rate reform has not been endorsed and entities may utilize any replacement reference rate determined to be appropriate based on its funding model and customer needs. As discussed in the “Interagency Policy Statement on Reference Rates for Loans," fallback language should be included in lending contracts to provide for use of a robust fallback rate if the initial reference rate is discontinued. Additionally, federal banking regulators issued the "Interagency Statement on LIBOR Transition" acknowledging that the administrator of USD London Interbank Offered Rate (LIBOR) benchmarks has announced it will consult on its intention to cease the publication of the one week and two month USD LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining USD LIBOR settings immediately following the LIBOR publication on June 30, 2023. On March 5, 2021, the administrator of USD LIBOR benchmarks confirmed these dates and will cease publication of USD LIBOR tenors accordingly. As discussed in the "Interagency Statement on LIBOR Transition," regulators encouraged banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, in order to facilitate an orderly, safe and sound LIBOR transition. Reference rate reform did not significantly impact our consolidated financial statements. Newly Issued, But Not Yet Effective 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". ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2022-02 is not expected to have a material impact on the consolidated financial statements and related disclosures related to modifications made to troubled borrowers will be updated upon adoption.

Acquisitions and Divestitures (Tables)

12 Months Ended

Dec. 31, 2022

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

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

A summary of the carrying amount of the assets in the Disposal Group and the gain on sale is as follows:


(Dollars in thousands)
Carrying amount of assets in the disposal group:
Loans	$	84,504
Premises and equipment, net	45
Other assets	11
	84,560
Carrying amount of liabilities in the disposal group:
Other liabilities	479
Total carrying amount	$	84,081
Total consideration received	94,531
Gain on sale of division	10,450
Transaction costs	692
Gain on sale of division, net of transaction costs	$	9,758

Summary of Fair Values of the Identifiable Assets Acquired and Liabilities Assumed

A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows:


(Dollars in thousands)	Initial Values		Measurement Period Adjustments		Adjusted Values
Assets acquired:
Cash	$	170	$	—	$	170
Intangible assets - capitalized software	16,932		—		16,932
Intangible assets - customer relationship	10,360		—		10,360
Other assets	1,546		24		1,570
	29,008		24		29,032
Liabilities assumed:
Deferred income taxes	4,703		(3,248)		1,455
Other liabilities	906		16		922
	5,609		(3,232)		2,377
Fair value of net assets acquired	$	23,399	$	3,256	$	26,655
Consideration:
Cash paid	$	97,096	$	—	$	97,096
Goodwill	$	73,697	$	(3,256)	$	70,441

A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows:


(Dollars in thousands)	Initial Values Recorded at Acquisition Date		Measurement Period Adjustments		Adjusted Values
Assets acquired:
Factored receivables	$	107,524	$	—	$	107,524
Allowance for credit losses	(37,415)		—		(37,415)
Factored receivables, net of ACL	70,109		—		70,109
Intangible assets	3,500		—		3,500
Indemnification asset	30,959		—		30,959
Deferred income taxes	1,448		(59)		1,389
	106,016		(59)		105,957
Liabilities assumed:
Deposits	5,361		—		5,361
	5,361		—		5,361
Fair value of net assets acquired	$	100,655	$	(59)	$	100,596
Consideration:
Cash paid	$	108,375	$	—	$	108,375
Stock consideration	13,942		—		13,942
Receivable due from seller subsequent to liquidation of stock consideration	(17,196)		—		(17,196)
Total consideration	$	105,121	$	—	$	105,121
Goodwill	$	4,466	$	59	$	4,525

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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+ Details

Securities (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Gross Realized and Unrealized Gains (Losses) Recognized on Equity Securities

The gross realized and unrealized gains (losses) recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:


(Dollars in thousands)	2022		2021		2020
Unrealized gains (losses) on equity securities still held at the reporting date	$	(313)	$	(322)	$	389
Realized gains (losses) on equity securities sold during the period	—		—		—
	$	(313)	$	(322)	$	389


	Year Ended December 31,
(Dollars in thousands)	2022		2021		2020
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	$	—	$	—

Summary of 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)	December 31, 2022		December 31, 2021
Equity Securities without readily determinable fair value, at cost	$	39,019	$	14,671
Upward adjustments based on observable price changes, cumulative	10,163		—
Equity Securities without readily determinable fair value, carrying value	$	49,182	$	14,671

Schedule of Amortized Cost of Securities and Their Estimated Fair Values


(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
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 Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
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


(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
December 31, 2021
Available for sale securities:
Mortgage-backed securities, residential	$	36,885	$	720	$	(156)	$	—	$	37,449
Asset-backed securities	6,763		2		(1)		—		6,764
State and municipal	26,309		516		—		—		26,825
CLO Securities	103,579		3,109		(54)		—		106,634
Corporate bonds	1,992		64		—		—		2,056
SBA pooled securities	2,536		162		—		—		2,698
Total available for sale securities	$	178,064	$	4,573	$	(211)	$	—	$	182,426


(Dollars in thousands)	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
December 31, 2021
Held to maturity securities:
CLO securities	$	7,029	$	—	$	(1,582)	$	5,447
Allowance for credit losses	(2,082)
Total held to maturity securities, net of ACL	$	4,947

Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity


	Available for Sale Securities				Held to Maturity Securities
(Dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	1,801	$	1,798	$	—	$	—
Due from one year to five years	2,010		1,982		—		—
Due from five years to ten years	53,148		51,897		6,521		5,476
Due after ten years	142,932		140,035		—		—
	199,891		195,712		6,521		5,476
Mortgage-backed securities, residential	55,329		50,633		—		—
Asset-backed securities	6,389		6,331		—		—
SBA pooled securities	1,910		1,828		—		—
	$	263,519	$	254,504	$	6,521	$	5,476

Schedule of Proceeds from Sales of Debt Securities and the Associated Gross Gains and Losses

Proceeds from sales of debt securities and the associated gross gains and losses are as follows:


(Dollars in thousands)	2022		2021		2020
Proceeds	$	40,163	$	—	$	70,198
Gross gains	2,514		—		3,233
Gross losses	—		—		(140)
Net gains and losses from calls of securities	(2)		5		133

Schedule of Available-for-Sale Debt Securities in an Unrealized Loss Position with No Allowance


	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
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)
Total available for sale securities	$	193,142	$	(5,201)	$	40,261	$	(4,241)	$	233,403	$	(9,442)


	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2021
Available for sale securities:
Mortgage-backed securities, residential	20,386		(155)		6		(1)		20,392		(156)
Asset-backed securities	37		—		4,999		(1)		5,036		(1)
State and municipal	30		—		—		—		30		—
CLO Securities	22,707		(54)		—		—		22,707		(54)
Corporate bonds	—		—		—		—		—		—
SBA pooled securities	—		—		—		—		—		—
Total available for sale securities	$	43,160	$	(209)	$	5,005	$	(2)	$	48,165	$	(211)

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)	Year Ended December 31,
Held to Maturity CLO Securities	2022		2021		2020
Allowance for credit losses:
Beginning balance	$	2,082	$	2,026	$	—
Impact of adopting ASC 326	—		—		126
Credit loss expense (benefit)	362		56		1,900
Allowance for credit losses ending balance	$	2,444	$	2,082	$	2,026

Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Schedule of Loans Held for Sale

The following table presents loans held for sale:


(Dollars in thousands)	December 31, 2022		December 31, 2021
1-4 family residential	$	—	$	712
Commercial	5,641		6,618
Total loans held for sale	$	5,641	$	7,330

Schedule of Amortized Cost and Unpaid Principal for Loans Held for Investment

The following table presents the amortized cost and unpaid principal for loans held for investment:


	December 31, 2022						December 31, 2021
(Dollars in thousands)	Amortized Cost		Unpaid Principal		Difference		Amortized Cost		Unpaid Principal		Difference
Commercial real estate	$	678,144	$	679,239	$	(1,095)	$	632,775	$	634,319	$	(1,544)
Construction, land development, land	90,976		91,147		(171)		123,464		123,643		(179)
1-4 family residential properties	125,981		126,185		(204)		123,115		123,443		(328)
Farmland	68,934		69,185		(251)		77,394		77,905		(511)
Commercial	1,251,110		1,262,493		(11,383)		1,430,429		1,440,542		(10,113)
Factored receivables	1,237,449		1,241,032		(3,583)		1,699,537		1,703,936		(4,399)
Consumer	8,868		8,871		(3)		10,885		10,883		2
Mortgage warehouse	658,829		658,829		—		769,973		769,973		—
Total	4,120,291		$	4,136,981	$	(16,690)	4,867,572		$	4,884,644	$	(17,072)
Allowance for credit losses	(42,807)						(42,213)
	$	4,077,484					$	4,825,359

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 Balance		Credit Loss Expense (Benefit)		Charge-offs		Recoveries		Ending Balance
Year ended December 31, 2022
Commercial real estate	$	3,961	$	546	$	(108)	$	60	$	4,459
Construction, land development, land	827		323		—		5		1,155
1-4 family residential properties	468		363		—		7		838
Farmland	562		(79)		—		—		483
Commercial	14,485		2,713		(2,205)		925		15,918
Factored receivables	20,915		3,045		(5,853)		1,014		19,121
Consumer	226		239		(435)		145		175
Mortgage warehouse	769		(111)		—		—		658
	$	42,213	$	7,039	$	(8,601)	$	2,156	$	42,807


(Dollars in thousands)	Beginning Balance		Credit Loss Expense (Benefit)		Charge-offs		Recoveries		Ending Balance
Year ended December 31, 2021
Commercial real estate	$	10,182	$	(6,214)	$	(17)	$	10	$	3,961
Construction, land development, land	3,418		(2,584)		(12)		5		827
1-4 family residential properties	1,225		(849)		(34)		126		468
Farmland	832		(270)		—		—		562
Commercial	22,040		(7,725)		(481)		651		14,485
Factored receivables	56,463		10,038		(46,043)		457		20,915
Consumer	542		(92)		(359)		135		226
Mortgage warehouse	1,037		(268)		—		—		769
	$	95,739	$	(7,964)	$	(46,946)	$	1,384	$	42,213


(Dollars in thousands)	Beginning Balance		Provision		Charge-offs		Recoveries		Initial ACL on Loans Purchased with Credit Deterioration		Reclassification To Held For Sale		Impact of Adopting ASC 326		Ending Balance
Year ended December 31, 2020
Commercial real estate	$	5,353	$	3,607	$	(320)	$	170	$	—	$	—	$	1,372	$	10,182
Construction, land development, land	1,382		2,005		(23)		241		—		—		(187)		3,418
1-4 family residential properties	308		378		(27)		53		—		—		513		1,225
Farmland	670		(355)		—		80		—		—		437		832
Commercial	12,566		11,336		(2,344)		1,115		—		(449)		(184)		22,040
Factored receivables	7,657		16,079		(3,201)		143		37,415		—		(1,630)		56,463
Consumer	488		562		(573)		117		—		—		(52)		542
Mortgage warehouse	668		369		—		—		—		—		—		1,037
	$	29,092	$	33,981	$	(6,488)	$	1,919	$	37,415	$	(449)	$	269	$	95,739

Individual And Collective Allowance For Credit Losses On Financing Receivables And Loan Balances


(Dollars in thousands)	Real Estate		Accounts Receivable		Equipment		Other		Total		ACL Allocation
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


(Dollars in thousands)	Real Estate		Accounts Receivable		Equipment		Other		Total		ACL Allocation
December 31, 2021
Commercial real estate	$	2,143	$	—	$	—	$	155	$	2,298	$	283
Construction, land development, land	987		—		—		—		987		—
1-4 family residential	1,583		—		—		116		1,699		39
Farmland	1,803		—		126		116		2,045		—
Commercial	254		—		5,598		3,017		8,869		1,733
Factored receivables	—		42,863		—		—		42,863		12,640
Consumer	—		—		—		240		240		21
Mortgage warehouse	—		—		—		—		—		—
Total	$	6,770	$	42,863	$	5,724	$	3,644	$	59,001	$	14,716

Summary of Contractually Past Due and Nonaccrual Loans

The following tables present an aging of contractually past due loans:


(Dollars in thousands)	Past Due 30-59 Days		Past Due 60-90 Days		Past Due 90 Days or More		Total Past Due		Current		Total		Past Due 90 Days or More Still Accruing
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 properties	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		—
	$	46,716	$	16,362	$	41,367	$	104,445	$	4,015,846	$	4,120,291	$	37,142


(Dollars in thousands)	Past Due 30-59 Days		Past Due 60-90 Days		Past Due 90 Days or More		Total Past Due		Current		Total		Past Due 90 Days or More Still Accruing
December 31, 2021
Commercial real estate	$	1,021	$	—	$	16	$	1,037	$	631,738	$	632,775	$	—
Construction, land development, land	30		—		145		175		123,289		123,464		—
1-4 family residential properties	730		332		1,114		2,176		120,939		123,115		134
Farmland	378		154		977		1,509		75,885		77,394		—
Commercial	996		346		4,948		6,290		1,424,139		1,430,429		—
Factored receivables	70,109		18,302		39,134		127,545		1,571,992		1,699,537		39,134
Consumer	255		48		99		402		10,483		10,885		—
Mortgage warehouse	—		—		—		—		769,973		769,973		—
	$	73,519	$	19,182	$	46,433	$	139,134	$	4,728,438	$	4,867,572	$	39,268

Summary of Amortized Cost Basis of Loans on Nonaccrual Status


	December 31, 2022				December 31, 2021
(Dollars in thousands)	Total Nonaccrual		Nonaccrual With No ACL		Total Nonaccrual		Nonaccrual With No ACL
Commercial real estate	$	871	$	319	$	2,025	$	1,375
Construction, land development, land	150		150		964		964
1-4 family residential	1,391		1,238		1,683		1,582
Farmland	400		400		2,044		2,044
Commercial	15,393		3,662		8,078		3,910
Factored receivables	—		—		—		—
Consumer	91		91		240		159
Mortgage warehouse	—		—		—		—
	$	18,296	$	5,860	$	15,034	$	10,034

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:


	Year Ended December 31,
(Dollars in thousands)	2022		2021		2020
Commercial real estate	$	—	$	8	$	438
Construction, land development, land	2		—		1
1-4 family residential	1		3		32
Farmland	—		6		39
Commercial	28		36		86
Factored receivables	—		—		—
Consumer	—		3		2
Mortgage warehouse	—		—		—
	$	31	$	56	$	598

Schedule of Nonperforming Loans

The following table presents information regarding nonperforming loans:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Nonaccrual loans(1)	$	18,296	$	15,034
Factored receivables greater than 90 days past due	28,940		29,057
Other nonperforming factored receivables(2)	491		1,428
Troubled debt restructurings accruing interest	503		765
	$	48,230	$	46,284

(1) Includes troubled debt restructurings of $1,897,000 and $3,912,000 at December 31, 2022 and 2021, respectively.

Summary of Risk Category of Loans

As of December 31, 2022 and 2021, based on the most recent analysis performed, the risk category of loans is as follows:


													Revolving Loans		Revolving Loans Converted To Term Loans		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	$	1,204,622	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1,204,622
Classified	12,974		—		19,853		—		—		—		—		—		32,827
Total factored receivables	$	1,217,596	$	—	$	19,853	$	—	$	—	$	—	$	—	$	—	$	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	$	2,572,361	$	382,067	$	360,168	$	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	$	2,600,923	$	396,193	$	385,777	$	80,301	$	34,304	$	91,678	$	530,450	$	665	$	4,120,291


													Revolving Loans		Revolving Loans Converted To Term Loans		Total
(Dollars in thousands)	Year of Origination
December 31, 2021	2021		2020		2019		2018		2017		Prior
Commercial real estate
Pass	$	211,088	$	249,652	$	50,223	$	25,930	$	47,447	$	37,290	$	4,595	$	—	$	626,225
Classified	2,879		3,358		41		—		16		—		256		—		6,550
Total commercial real estate	$	213,967	$	253,010	$	50,264	$	25,930	$	47,463	$	37,290	$	4,851	$	—	$	632,775

Construction, land development, land
Pass	$	56,764	$	33,756	$	4,744	$	23,696	$	1,199	$	994	$	8	$	—	$	121,161
Classified	2,150		8		—		—		—		145		—		—		2,303
Total construction, land development, land	$	58,914	$	33,764	$	4,744	$	23,696	$	1,199	$	1,139	$	8	$	—	$	123,464

1-4 family residential
Pass	$	26,840	$	15,195	$	9,485	$	6,526	$	8,591	$	22,151	$	32,210	$	318	$	121,316
Classified	273		233		53		6		64		1,089		81		—		1,799
Total 1-4 family residential	$	27,113	$	15,428	$	9,538	$	6,532	$	8,655	$	23,240	$	32,291	$	318	$	123,115

Farmland
Pass	$	14,387	$	13,396	$	7,892	$	8,040	$	10,040	$	19,792	$	1,317	$	241	$	75,105
Classified	199		612		593		333		128		298		126		—		2,289
Total farmland	$	14,586	$	14,008	$	8,485	$	8,373	$	10,168	$	20,090	$	1,443	$	241	$	77,394

Commercial
Pass	$	466,254	$	332,746	$	77,010	$	18,940	$	15,032	$	7,704	$	490,159	$	49	$	1,407,894
Classified	9,317		6,858		5,088		558		56		456		202		—		22,535
Total commercial	$	475,571	$	339,604	$	82,098	$	19,498	$	15,088	$	8,160	$	490,361	$	49	$	1,430,429

Factored receivables
Pass	$	1,667,922	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1,667,922
Classified	10,826		20,789		—		—		—		—		—		—		31,615
Total factored receivables	$	1,678,748	$	20,789	$	—	$	—	$	—	$	—	$	—	$	—	$	1,699,537

Consumer
Pass	$	3,252	$	1,794	$	669	$	553	$	2,424	$	1,882	$	70	$	—	$	10,644
Classified	5		—		—		12		119		105		—		—		241
Total consumer	$	3,257	$	1,794	$	669	$	565	$	2,543	$	1,987	$	70	$	—	$	10,885

Mortgage warehouse
Pass	$	769,973	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	769,973
Classified	—		—		—		—		—		—		—		—		—
Total mortgage warehouse	$	769,973	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	769,973

Total loans
Pass	$	3,216,480	$	646,539	$	150,023	$	83,685	$	84,733	$	89,813	$	528,359	$	608	$	4,800,240
Classified	25,649		31,858		5,775		909		383		2,093		665		—		67,332
Total loans	$	3,242,129	$	678,397	$	155,798	$	84,594	$	85,116	$	91,906	$	529,024	$	608	$	4,867,572

Schedule of Loans Modified as Troubled Debt Restructurings


(Dollars in thousands)	Extended Amortization Period		Payment Deferrals		Protective Advances		Total Modifications		Number of Loans
December 31, 2022
Commercial	$	45	$	—	$	—	$	45	1
	$	45	$	—	$	—	$	45	1

December 31, 2021
Commercial real estate	$	—	$	—	$	741	$	741	1
Commercial	—		697		—		697		2
	$	—	$	697	$	741	$	1,438	3

December 31, 2020
Commercial real estate	$	—	$	727	$	—	$	727	3
Construction, land development, land	8		981		—		989		2
1-4 family residential properties	—		171		—		171		1
Farmland	3,486		—		—		3,486		1
Commercial	4,714		9,877		—		14,591		22
	$	8,208	$	11,756	$	—	$	19,964	29

Balance of Loans Modified Due to COVID-19

The following table summarizes the balance of loans modified for borrowers impacted by the COVID-19 pandemic.


	Year Ended December 31,
(Dollars in thousands)	2022	2021	2020
Total modifications	—	10,801	628,022

Summary of Amortized Cost of Loans Currently in Deferral

The following table summarized the amortized cost of loans with payments currently in deferral and the accrued interest related to the loans with payments in deferral at December 31, 2021:


(Dollars in thousands)	Total Loans		Balance of Loans Currently in Deferral		Percentage of Portfolio		Accrued Interest Receivable

December 31, 2021
Commercial real estate	$	632,775	$	30,212	4.8	%	$	116
Construction, land development, land	123,464		1,340		1.1	%	5
1-4 family residential	123,115		—		—	%	—
Farmland	77,394		338		0.4	%	3
Commercial	1,430,429		—		—	%	—
Factored receivables	1,699,537		—		—	%	—
Consumer	10,885		6		0.1	%	—
Mortgage warehouse	769,973		—		—	%	—
Total	$	4,867,572	$	31,896	0.7	%	$	124

Other Real Estate Owned (Tables)

12 Months Ended

Dec. 31, 2022

Other Real Estate [Abstract]

Summary of Other Real Estate Owned Activity

Other real estate owned activity was as follows:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Beginning balance	$	524	$	1,432	$	3,009
Loans transferred to OREO	47		692		1,150
Net OREO gains (losses) and valuation adjustments	(133)		(347)		(616)
Sales of OREO	(438)		(1,253)		(2,111)
Ending balance	$	—	$	524	$	1,432

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Premises and Equipment

Premises and equipment consisted of the following:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Land	$	13,080	$	12,992
Buildings	55,001		52,558
Leasehold improvements	37,406		35,235
Automobiles and aircraft	9,929		9,820
Furniture, fixtures and equipment	35,465		35,091
	150,881		145,696
Accumulated depreciation	(47,542)		(39,967)
	$	103,339	$	105,729

Schedule of Lease Cost

Lease costs were as follows:


	Year Ended December 31,
(Dollars in thousands)	2022		2021		2020
Operating lease cost	$	4,242	$	4,538	$	5,290

Variable lease cost	880		443		422
Total lease cost	$	5,122	$	4,981	$	5,712

Schedule of Total Operating Lease Liability

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows:


(Dollars in thousands)	December 31, 2022
Lease payments due:
Within one year	$	5,515
After one but within two years	5,275
After two but within three years	5,181
After three but within four years	4,922
After four but within five years	4,770
After five years	12,848
Total undiscounted cash flows	38,511
Discount on cash flows	(4,476)
Total lease liability	$	34,035

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

Goodwill and intangible assets consist of the following:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Goodwill	$	233,709	$	233,727


	December 31, 2022						December 31, 2021
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangibles	$	43,578	$	(35,347)	$	8,231	$	43,578	$	(31,800)	$	11,778
Software intangible asset	16,932		(6,702)		10,230		16,932		(2,469)		14,463
Other intangible assets	30,410		(16,813)		13,597		29,560		(12,672)		16,888
	$	90,920	$	(58,862)	$	32,058	$	90,070	$	(46,941)	$	43,129

Schedule of Changes in Goodwill and Intangible Assets by Operating Segment

The changes in goodwill and intangible assets by operating segment during the year are as follows:


(Dollars in thousands)
December 31, 2022	Banking		Factoring		Payments		Corporate		Total
Beginning balance	$	119,306	$	63,275	$	94,275	$	—	$	276,856
Acquired goodwill	—		—		—		—		—
Acquired goodwill - measurement period adjustment	—		—		(18)		—		(18)
Acquired intangibles	751		—		—		100		851
Amortization of intangibles	(3,761)		(2,293)		(5,868)		—		(11,922)
Ending balance	$	116,296	$	60,982	$	88,389	$	100	$	265,767


(Dollars in thousands)
December 31, 2021	Banking		Factoring		Payments		Corporate		Total
Beginning balance	$	123,882	$	66,040	$	—	$	—	$	189,922
Acquired goodwill	—		—		73,697		—		73,697
Acquired goodwill - measurement period adjustment	—		59		(3,238)		—		(3,179)
Acquired intangibles	—		—		27,292		—		27,292
Amortization of intangibles	(4,576)		(2,824)		(3,476)		—		(10,876)
Ending balance	$	119,306	$	63,275	$	94,275	$	—	$	276,856


(Dollars in thousands)
December 31, 2020	Banking		Factoring		Payments		Corporate		Total
Beginning balance	$	129,272	$	61,014	$	—	$	—	$	190,286
Acquired goodwill	—		4,466		—		—		4,466
Acquired intangibles	—		3,500		—		—		3,500
Amortization of intangibles	(5,390)		(2,940)		—		—		(8,330)
Ending balance	$	123,882	$	66,040	$	—	$	—	$	189,922

Schedule of Future Amortization Schedule for the Company's Intangible Assets

The future amortization schedule for the Company’s intangible assets with finite lives is as follows:


(Dollars in thousands)
2023	$	10,482
2024	9,159
2025	5,400
2026	2,480
2027	1,571
Thereafter	2,115
	$	31,207

Amortization schedule excludes $851,000 of indefinite lived intangible assets.

Equity Method Investment (Tables)

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The following table presents the Company’s investment in WSI:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Common stock	$	38,088	$	5,142
Warrants	—		3,224
Total investment	$	38,088	$	8,366

Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2022

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 Date	Offering Amount
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

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

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:


	Year Ended
(Dollars in thousands)	December 31, 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 Fair Value of Derivative Financial Instruments Classification on Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2021.

Derivative Assets

As of December 31, 2021

(Dollars in thousands)

Notional
Amount

Balance
Sheet Location

Fair Value
Total

Derivatives designated as hedging instruments:

Interest rate swaps

200,000

Other Assets

6,164

Schedule of Fair Value and Cash Flow Hedge Accounting on AOCI

The table below presents the effect of fair value and cash flow hedge accounting on Accumulated Other Comprehensive Income, net of tax:


	Amount of Gain or (Loss) Recognized in OCI on Derivative		Amount of Gain or (Loss) Recognized in OCI Included Component		Location of Gain or (Loss) Recognized from AOCI into Income	Amount of Gain or (Loss) Reclassified from AOCI into Income		Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component
(Dollars in thousands)
Year Ended December 31, 2022
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	2,398	$	2,398	Interest Expense, Noninterest Income	$	7,103	$	7,103

Year Ended December 31, 2021
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	3,995	$	3,995	Interest Expense	$	(71)	$	(71)

Year Ended December 31, 2020
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	597	$	597	Interest Expense	$	(26)	$	(26)

Deposits (Tables)

12 Months Ended

Dec. 31, 2022

Deposits [Abstract]

Summary of Deposits

Deposits are summarized as follows:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Noninterest-bearing demand	$	1,756,680	$	1,925,370
Interest-bearing demand	856,512		830,019
Individual retirement accounts	68,125		83,410
Money market	508,534		520,358
Savings	551,780		504,146
Certificates of deposit	319,150		533,206
Brokered time deposits	110,555		40,125
Other brokered deposits	—		210,045
Total deposits	$	4,171,336	$	4,646,679

Scheduled Maturities of Time Deposits, Including Certificates of Deposits, Individual Retirement Accounts and Brokered Deposits

At December 31, 2022, scheduled maturities of time deposits, including certificates of deposits, individual retirement accounts and brokered time deposits, are as follows:


(Dollars in thousands)	December 31, 2022
Within one year	$	435,978
After one but within two years	42,394
After two but within three years	9,509
After three but within four years	5,052
After four but within five years	4,897
Total	$	497,830

- Definition

Tabular disclosure of type of deposit liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (e)

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(ii)

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (1)

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (d)

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (5)

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iii)

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (4)

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (c)

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (2)

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (3)

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)

+ Details

Borrowings and Borrowing Capacity (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Customer Repurchase Agreements

Information concerning customer repurchase agreements is summarized as follows:


(Dollars in thousands)	December 31, 2022			December 31, 2021
Amount outstanding at end of the year	$	340		$	2,103
Weighted average interest rate at end of the year	0.03		%	0.03		%
Average daily balance during the year	$	6,701		$	5,985
Weighted average interest rate during the year	0.03		%	0.03		%
Maximum month-end balance during the year	$	13,463		$	12,405

Customer repurchase agreements are secured by pledged securities with carrying amounts as follows:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Asset-backed securities	$	4,994	$	4,999
CLO securities	—		9,971
	$	4,994	$	14,970

Schedule of FHLB Advances and Weighted Average Interest Rates by Contractual Maturity

FHLB Advances


	Variable Rate
(Dollars in thousands)		Balance Outstanding	Weighted Average Interest Rate

2027		30,000	4.25	%

Schedule of Information Concerning FHLB Advances

Information concerning FHLB advances is summarized as follows:


(Dollars in thousands)	December 31, 2022			December 31, 2021
Amount outstanding at end of the year	$	30,000		$	180,000
Weighted average interest rate at end of the year	4.25		%	0.15		%
Average daily balance during the year	$	69,658		$	37,671
Weighted average interest rate during the year	1.19		%	0.24		%
Maximum month-end balance during the year	$	230,000		$	180,000

Schedule of FHLB Advances

The Company’s unused borrowing capacity with the FHLB is as follows:


(Dollars in thousands)	December 31, 2022		December 31, 2021
Borrowing capacity	$	676,307	$	978,794
Borrowings outstanding	(30,000)		(180,000)
Unused borrowing capacity	$	646,307	$	798,794

Schedule of Information Concerning Paycheck Protection Program Borrowings

Information concerning borrowings under the PPPLF is summarized as follows:


(Dollars in thousands)	December 31, 2022			December 31, 2021
Amount outstanding at end of period	$	—		$	27,144
Weighted average interest rate at end of period	—		%	0.35		%
Average amount outstanding during the period	670			118,880
Weighted average interest rate during the period	0.32		%	0.35		%
Highest month end balance during the period	—			181,635

Schedule of Subordinated Notes

The following provides a summary of the Company’s subordinated notes:


(Dollars in thousands)	Face Value		Carrying Value		Maturity Date	Current Interest Rate	First Repricing Date	Variable Interest Rate at Repricing Date	Initial Issuance Costs
Subordinated Notes issued November 27, 2019	$	39,500	$	38,857	2029	4.875%	11/27/2024	Three Month LIBOR plus 3.330%	$	1,218
Subordinated Notes issued August 26, 2021	70,000		68,943		2031	3.500%	9/01/2026	Three Month SOFR(1) plus 2.860%	$	1,776
	$	109,500	$	107,800

(1) Secured Overnight Financing Rate

Summary of Junior Subordinated Debentures

The following provides a summary of the Company’s junior subordinated debentures:


(Dollars in thousands)	Face Value		Carrying Value		Maturity Date	Variable Interest Rate	Interest Rate At December 31, 2022
National Bancshares Capital Trust II	$	15,464	$	13,489	September 2033	LIBOR + 3.00%	7.77%
National Bancshares Capital Trust III	17,526		13,409		July 2036	LIBOR + 1.64%	5.72%
ColoEast Capital Trust I	5,155		3,758		September 2035	LIBOR + 1.60%	6.33%
ColoEast Capital Trust II	6,700		4,869		March 2037	LIBOR + 1.79%	6.52%
Valley Bancorp Statutory Trust I	3,093		2,906		September 2032	LIBOR + 3.40%	8.12%
Valley Bancorp Statutory Trust II	3,093		2,727		July 2034	LIBOR + 2.75%	7.49%
	$	51,031	$	41,158

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense

Income tax expense consisted of the following:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Income tax expense:
Current	$	36,472	$	37,812	$	22,766
Deferred	(1,828)		(5,832)		(2,080)
Change in valuation allowance for deferred tax asset	49		—		—
Income tax expense	$	34,693	$	31,980	$	20,686

Summary of Effective Income Tax Rate Reconciliation

Effective tax rates differ from federal statutory rates applied to income before income taxes due to the following:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Tax provision computed at federal statutory rate	$	28,771	$	30,440	$	17,789
Effect of:
State taxes, net	4,849		3,335		2,919
Stock-based compensation	(369)		(1,778)		(109)
Non-deductible executive compensation	1,510		492		52
Bank-owned life insurance	(89)		(332)		(121)
Tax exempt interest	(100)		(201)		(250)
Change in valuation allowance for deferred tax asset	49		—		—
Other	72		24		406
Income tax expense	$	34,693	$	31,980	$	20,686

Significant Components of Deferred Tax Assets and Liabilities


(Dollars in thousands)	2022		2021
Deferred tax assets
Federal net operating loss carryforwards	$	6,396	$	7,231
State net operating loss carryforwards	1,534		1,458
Stock-based compensation	7,825		5,742
Unrealized loss on securities available for sale	2,163		—
Allowance for credit losses	11,825		11,341
Accrued liabilities	4,179		4,465
Lease liability	8,062		8,348
Other	3,405		707
Total deferred tax assets	45,389		39,292
Deferred tax liabilities
Goodwill and intangible assets	9,934		9,449
Fair value adjustment on junior subordinated debentures	2,237		2,324
Premises and equipment	6,339		4,786
Acquired loan basis	371		525
Installment gain on sale of subsidiary	—		626
Lease right-of-use asset	7,339		7,598
Unrealized gain on securities available for sale	—		1,023
Derivative financial instruments	—		1,475
Indemnification asset	935		1,123
Other	1,434		62
Total deferred tax liabilities	28,589		28,991
Net deferred tax asset before valuation allowance	16,800		10,301
Valuation allowance	(327)		(278)
Net deferred tax asset	$	16,473	$	10,023

Off-Balance Sheet Loan Commitments (Tables)

12 Months Ended

Dec. 31, 2022

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:


	December 31, 2022						December 31, 2021
(Dollars in thousands)	Fixed Rate		Variable Rate		Total		Fixed Rate		Variable Rate		Total
Unused lines of credit	$	1,417	$	487,965	$	489,382	$	26,029	$	523,483	$	549,512
Standby letters of credit	$	12,309	$	4,897	$	17,206	$	11,090	$	5,409	$	16,499
Commitments to purchase loans	$	—	$	53,572	$	53,572	$	—	$	108,423	$	108,423
Mortgage warehouse commitments	$	—	$	1,055,117	$	1,055,117	$	—	$	823,060	$	823,060

Securities Borrowed, Allowance for Credit Loss

The following table presents credit loss expense for off balance sheet credit exposures:


	Year Ended December 31,
(Dollars in thousands)	2022		2021		2020
Credit loss expense (benefit)	$	(476)	$	(922)	$	2,448

Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of 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 Fair Value
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


(Dollars in thousands)	Fair Value Measurements Using						Total Fair Value
December 31, 2021	Level 1		Level 2		Level 3
Assets measured at fair value on a recurring basis
Securities available for sale
Mortgage-backed securities, residential	$	—	$	37,449	$	—	$	37,449
Asset-backed securities	—		6,764		—		6,764
State and municipal	—		26,825		—		26,825
CLO Securities	—		106,634		—		106,634
Corporate bonds	—		2,056		—		2,056
SBA pooled securities	—		2,698		—		2,698
	$	—	$	182,426	$	—	$	182,426

Equity securities with readily determinable fair values
Mutual fund	$	5,504	$	—	$	—	$	5,504

Loans held for sale	$	—	$	7,330	$	—	$	7,330

Indemnification asset	$	—	$	—	$	4,786	$	4,786

Derivative financial instruments (cash flow hedges)
Interest rate swap	$	—	$	6,164	$	—	$	6,164

Reconciliation of Fair Value of Contingent Consideration

A reconciliation of the opening balance to the closing balance of the fair value of the indemnification asset is as follows:


(Dollars in thousands)	2022		2021		2020
Beginning balance	$	4,786	$	36,225	$	—
Indemnification asset recognized in business combination	—		—		30,959
Change in fair value of indemnification asset recognized in earnings	(890)		4,194		5,266
Indemnification recognized	—		(35,633)		—
Ending balance	$	3,896	$	4,786	$	36,225

A reconciliation of the opening balance to the closing balance of the fair value of the revenue share asset is as follows:


(Dollars in thousands)	2022
Beginning balance	$	—
Revenue share asset recognized	6,237
Change in fair value of revenue share asset recognized in earnings	(62)
Revenue share payments received	(660)
Ending balance	$	5,515

A reconciliation of the opening balance to the closing balance of the fair value of the return of premium liability is as follows:


(Dollars in thousands)	2022
Beginning balance	$	—
Return of premium liability recognized in business combination	708
Change in fair value of return of premium liability recognized in earnings	(35)
Return of premium payments made	(98)
Ending balance	$	575

Schedule of 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 December 31, 2022 and 2021.


(Dollars in thousands)	Fair Value Measurements Using						Total Fair Value
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
Consumer	—		—		—		—

Equity investment without readily determinable fair value	38,088		—		—		38,088



	$	38,088	$	—	$	36,676	$	74,764


(Dollars in thousands)	Fair Value Measurements Using						Total Fair Value
December 31, 2021	Level 1		Level 2		Level 3
Collateral dependent loans
Commercial real estate	$	—	$	—	$	366	$	366

1-4 family residential	—		—		61		61
Commercial	—		—		2,435		2,435
Factored receivables	—		—		30,224		30,224
Consumer	—		—		60		60
Other real estate owned (1):
Commercial real estate	—		—		7		7
Construction, land development, land	—		—		63		63


	$	—	$	—	$	33,216	$	33,216

(1) Represents the fair value of OREO that was adjusted subsequent to its initial classification as OREO.

Schedule of 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 were as follows:


	December 31, 2022
	Carrying Amount		Fair Value Measurements Using						Total Fair Value
(Dollars in thousands)			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


	December 31, 2021
	Carrying Amount		Fair Value Measurements Using						Total Fair Value
(Dollars in thousands)			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	383,178	$	383,178	$	—	$	—	$	383,178
Securities - held to maturity	4,947		—		—		5,447		5,447
Loans not previously presented, gross	4,834,426		142,962		—		4,685,058		4,828,020
FHLB and other restricted stock	10,146		N/A		N/A		N/A		N/A
Accrued interest receivable	15,319		15,319		—		—		15,319

Financial liabilities:
Deposits	4,646,679		—		4,646,552		—		4,646,552
Customer repurchase agreements	2,103		—		2,103		—		2,103
Federal Home Loan Bank advances	180,000		—		180,000		—		180,000
Paycheck Protection Program Liquidity Facility	27,144		—		27,144		—		27,144
Subordinated notes	106,957		—		110,045		—		110,045
Junior subordinated debentures	40,602		—		41,286		—		41,286
Accrued interest payable	1,951		1,951		—		—		1,951

Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Loans to Principal Officers, Directors, and their Affiliates

In the ordinary course of business, we have granted loans to executive officers, directors, and their affiliates were as follows:


	Years Ended December 31,
(Dollars in thousands)	2022		2021
Beginning balance	$	—	$	3,892
New loans and advances	—		—
Repayments and sales	—		(3,892)
Effect of changes in composition of related parties	—		—
Ending balance	$	—	$	—

Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2022

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:


	Actual		Minimum for Capital Adequacy Purposes		To Be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount	Ratio	Amount	Ratio	Amount	Ratio
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 of December 31, 2021
Total capital (to risk weighted assets)
Triumph Financial, Inc.	$769,475	14.1%	$436,582	8.0%	N/A	N/A
TBK Bank, SSB	$698,286	12.9%	$433,046	8.0%	$541,307	10.0%

Tier 1 capital (to risk weighted assets)
Triumph Financial, Inc.	$628,094	11.5%	$327,701	6.0%	N/A	N/A
TBK Bank, SSB	$665,336	12.3%	$324,554	6.0%	$432,739	8.0%

Common equity Tier 1 capital (to risk weighted assets)
Triumph Financial, Inc.	$542,492	9.9%	$246,587	4.5%	N/A	N/A
TBK Bank, SSB	$665,336	12.3%	$243,416	4.5%	$351,600	6.5%

Tier 1 capital (to average assets)
Triumph Financial, Inc.	$628,094	11.1%	$226,340	4.0%	N/A	N/A
TBK Bank, SSB	$665,336	11.8%	$225,538	4.0%	$281,922	5.0%

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Summary of Capital Structure

The following summarizes the Company’s capital structure.

Preferred Stock Series C


	December 31,
(Dollars in thousands, except per share amounts)	2022			2021
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


	December 31,
(Dollars in thousands, except per share amounts)	2022		2021
Shares authorized	50,000,000		50,000,000
Shares issued	28,321,716		28,261,680
Treasury shares	(4,268,131)		(3,102,801)
Shares outstanding	24,053,585		25,158,879
Par value per share	$	0.01	$	0.01

Stock Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

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 year ended December 31, 2022 were as follows:


Nonvested RSAs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2022	363,404	$	67.56
Granted	12,471	74.42
Vested	(126,203)	61.74
Forfeited	(19,186)	76.93
Nonvested at December 31, 2022	230,486	$	70.34

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 year ended December 31, 2022 were as follows:


Nonvested RSUs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2022	122,470	$	52.07
Granted	91,849	69.44
Vested	—	—
Forfeited	(3,019)	64.00
Nonvested at December 31, 2022	211,300	$	59.45

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 year ended December 31, 2022 were as follows:


Nonvested Market Based PSUs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2022	94,984	$	43.68
Granted	33,276	84.22
Incremental shares earned	8,997	N/A
Vested	(20,996)	33.91
Forfeited	(3,775)	77.75
Nonvested at December 31, 2022	112,486	$	55.57


Nonvested Performance Based PSUs	Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2022	259,383	$	39.32
Granted	3,000	69.44
Vested	—	—
Forfeited	(6,645)	43.03
Nonvested at December 31, 2022	255,738	$	39.57

Schedule of Fair Value of Market Based Performance Stock Units, Weighted Average Assumptions

The fair value of the Market Based PSUs granted was determined using the following weighted average assumptions:


	Year Ended December 31,
	2022			2021			2020
Grant date	May 1, 2022			May 1, 2021			May 1, 2020
Performance period	3.00 years			3.00 years			3.00 years
Stock price	$	69.44		$	88.63		$	26.25
Stock price volatility	55.17		%	51.71		%	43.02		%
Risk-free rate	2.84		%	0.35		%	0.25		%

Summary of Changes in Company's Stock Options

A summary of changes in the Company’s stock options under the Omnibus Incentive Plan for the year ended December 31, 2022 were as follows:


Stock Options	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value (In Thousands)
Outstanding at January 1, 2022	166,755	$	33.34
Granted	35,939	69.44
Exercised	(3,797)	26.12
Forfeited	(3,499)	69.44
Expired	—	—
Outstanding at December 31, 2022	195,398	$	39.48	6.10	$	3,176

Fully vested shares and shares expected to vest at December 31, 2022	195,398	$	39.48	6.10	$	3,176

Shares exercisable at December 31, 2022	128,958	$	29.10	4.90	$	2,717

Schedule of Information Related to Stock Options

Information related to the stock options for the years ended December 31, 2022, 2021, and 2020 was as follows:


	Year Ended December 31,
(Dollars in thousands, except per share amounts)	2022		2021		2020
Aggregate intrinsic value of options exercised	$	280	$	5,304	$	940
Cash received from option exercises, net	$	(74)	$	577	$	(227)
Tax benefit realized from option exercises	$	59	$	1,114	$	197
Weighted average fair value of options granted (per share)	$	32.15	$	35.37	$	8.85
Fair value of vested awards	$	423	$	381	$	471

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:


	2022		2021		2020
Risk-free interest rate	2.77	%	1.16	%	0.46	%
Expected term	6.25 years		6.25 years		6.25 years
Expected stock price volatility	43.33	%	39.26	%	33.83	%
Dividend yield	—		—		—

Parent Company Only Condensed Financial Information (Tables)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Condensed Parent Company Only Balance Sheets

Condensed Parent Company Only Balance Sheets:


(Dollars in thousands)	December 31, 2022		December 31, 2021
ASSETS
Cash and cash equivalents	$	92,338	$	64,530
Securities - held to maturity	4,077		4,947
Investment in bank subsidiary	943,084		938,255
Investment in non-bank subsidiaries	194		894
Other assets	4,568		479
Total assets	$	1,044,261	$	1,009,105
LIABILITIES AND EQUITY
Subordinated notes	$	107,800	$	106,957
Junior subordinated debentures	41,158		40,602
Intercompany payables	365		128
Accrued expenses and other liabilities	5,967		2,554
Total liabilities	155,290		150,241
Stockholders' equity	888,971		858,864
Total liabilities and equity	$	1,044,261	$	1,009,105

Condensed Parent Company Only Statements of Income

Condensed Parent Company Only Statements of Income:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Interest income	$	174	$	100	$	270
Interest expense	(7,874)		(8,220)		(7,477)
Credit loss (expense) benefit	(362)		(56)		(1,899)
Other income	80		53		(20)
Salaries and employee benefits expense	(729)		(618)		(606)
Other expense	(2,701)		(2,379)		(2,376)
Income (loss) before income tax and income from subsidiaries	(11,412)		(11,120)		(12,108)
Income tax (expense) benefit	2,150		2,202		2,631
Dividends from subsidiaries and equity in undistributed subsidiary income	111,573		121,892		73,501
Net income	102,311		112,974		64,024
Dividends on preferred stock	(3,206)		(3,206)		(1,701)
Net income available to common stockholders	$	99,105	$	109,768	$	62,323
Comprehensive income attributable to Parent	$	87,377	$	115,189	$	68,737

Condensed Parent Company Only Statements of Cash Flows

Condensed Parent Company Only Statements of Cash Flows:


	Years Ended December 31,
(Dollars in thousands)	2022		2021		2020
Cash flows from operating activities:
Net income	$	102,311	$	112,974	$	64,024
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed subsidiary income	1,427		(121,892)		(58,501)
Net accretion of securities	(171)		(87)		(221)
Amortization of junior subordinated debentures	556		530		506
Amortization of subordinated notes issuance costs	843		1,224		182
Stock based compensation	686		420		315
Credit loss expense (benefit)	362		56		1,900
Change in other assets	(4,089)		387		337
Change in accrued expenses and other liabilities	3,650		546		505
Net cash provided by (used in) operating activities	105,575		(5,842)		9,047
Cash flows from investing activities:
Investment in subsidiaries	—		3,383		146
Proceeds from maturities, calls, and pay downs of securities held to maturity	679		1,003		693
Net change in loans	—		—		719
Net cash provided by (used in) investing activities	679		4,386		1,558
Cash flows from financing activities:
Proceeds from issuance of subordinated notes, net	—		68,224		—
Repayment of subordinated notes	—		(50,000)		—

Issuance of preferred stock, net of issuance costs	—		—		42,364
Dividends on preferred stock	(3,206)		(3,206)		(1,701)
Purchase of treasury stock	(76,714)		(1,241)		(35,772)
Stock option exercises	(74)		577		(227)
Proceeds from employee stock purchase plan common stock issuance	1,548		449		—
Net cash provided by (used in) financing activities	(78,446)		14,803		4,664
Net increase (decrease) in cash and cash equivalents	27,808		13,347		15,269
Cash and cash equivalents at beginning of period	64,530		51,183		35,914
Cash and cash equivalents at end of period	$	92,338	$	64,530	$	51,183

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Factors Used in Computation of Earnings Per Share

The factors used in the earnings per share computation follow:


	Year Ended December 31,
(Dollars in thousands)	2022		2021		2020
Basic
Net income to common stockholders	$	99,105	$	109,768	$	62,323
Weighted average common shares outstanding	24,393,954		24,736,713		24,387,932
Basic earnings per common share	$	4.06	$	4.44	$	2.56

Diluted
Net income to common stockholders	$	99,105	$	109,768	$	62,323
Weighted average common shares outstanding	24,393,954		24,736,713		24,387,932
Dilutive effects of:
Assumed exercises of stock options	90,841		130,198		64,104
Restricted stock awards	148,630		170,276		86,498
Restricted stock units	98,139		76,049		25,978
Performance stock units - market based	122,123		136,199		51,304
Performance stock units - performance based	167,187		—		—
Employee stock purchase plan	2,694		2,617		—
Average shares and dilutive potential common shares	25,023,568		25,252,052		24,615,816
Diluted earnings per common share	$	3.96	$	4.35	$	2.53

Schedule of Shares not Considered in Computing Diluted Earnings per Common Share


	Year Ended December 31,
	2022	2021	2020
Stock options	49,379	16,939	64,947
Restricted stock awards	6,348	8,463	—
Restricted stock units	11,250	15,000	—
Performance stock units - market based	45,296	—	—
Performance stock units - performance based	—	259,383	256,625
Employee stock purchase plan	—	—	—

Business Segment Information (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information


(Dollars in thousands)
Year Ended December 31, 2022	Banking		Factoring		Payments		Corporate		Consolidated
Total interest income	$	195,871	$	207,114	$	16,079	$	175	$	419,239
Intersegment interest allocations	9,567		(9,444)		(123)		—		—
Total interest expense	10,873		—		—		7,874		18,747
Net interest income (expense)	194,565		197,670		15,956		(7,699)		400,492
Credit loss expense (benefit)	2,753		2,895		218		1,059		6,925
Net interest income (expense) after credit loss expense	191,812		194,775		15,738		(8,758)		393,567
Noninterest income	41,096		22,272		20,620		80		84,068
Noninterest expense	186,770		87,197		63,231		3,433		340,631
Operating income (loss)	$	46,138	$	129,850	$	(26,873)	$	(12,111)	$	137,004


(Dollars in thousands)
Year Ended December 31, 2021	Banking		Factoring		Payments		Corporate		Consolidated
Total interest income	$	189,621	$	185,741	$	12,093	$	100	$	387,555
Intersegment interest allocations	10,389		(9,878)		(511)		—		—
Total interest expense	10,205		—		—		8,220		18,425
Net interest income (expense)	189,805		175,863		11,582		(8,120)		369,130
Credit loss expense (benefit)	(19,016)		9,691		438		57		(8,830)
Net interest income (expense) after credit loss expense	208,821		166,172		11,144		(8,177)		377,960
Noninterest income	33,447		13,005		7,451		598		54,501
Noninterest expense	169,114		74,768		39,769		3,856		287,507
Operating income (loss)	$	73,154	$	104,409	$	(21,174)	$	(11,435)	$	144,954


(Dollars in thousands)
Year Ended December 31, 2020	Banking		Factoring		Payments		Corporate		Consolidated
Total interest income	$	207,978	$	109,391	$	4,474	$	272	$	322,115
Intersegment interest allocations	12,815		(12,371)		(444)		—		—
Total interest expense	29,910		—		—		7,477		37,387
Net interest income (expense)	190,883		97,020		4,030		(7,205)		284,728
Credit loss expense (benefit)	20,217		16,042		172		1,898		38,329
Net interest income (expense) after credit loss expense	170,666		80,978		3,858		(9,103)		246,399
Gain on sale of subsidiary or division	9,758		—		—		—		9,758
Other noninterest income	29,379		21,010		125		113		50,627
Noninterest expense	151,115		54,011		12,880		4,068		222,074
Operating income (loss)	$	58,688	$	47,977	$	(8,897)	$	(13,058)	$	84,710

Total assets and gross loans below include intersegment loans, which eliminate in consolidation.


(Dollars in thousands)
December 31, 2022	Banking		Factoring		Payments		Corporate		Eliminations		Consolidated
Total assets	$	4,931,666	$	1,250,476	$	371,948	$	1,040,175	$	(2,260,482)	$	5,333,783
Gross loans	$	3,576,216	$	1,151,727	$	85,722	$	—	$	(693,374)	$	4,120,291


(Dollars in thousands)
December 31, 2021	Banking		Factoring		Payments		Corporate		Eliminations		Consolidated
Total assets	$	5,568,826	$	1,679,495	$	293,212	$	1,009,998	$	(2,595,281)	$	5,956,250
Gross loans	$	4,444,136	$	1,546,361	$	153,176	$	700	$	(1,276,801)	$	4,867,572

Summary of Significant Accounting Policies - Additional Information (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2021 reportableSegment	Dec. 31, 2022 USD ($) derivativeInstument reportableSegment	Dec. 31, 2021 USD ($) derivativeInstument	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Accrued interest reversed		$ 0	$ 0	$ 0
Number of days within which accrual of interest income discontinues		90 days
Period after which consumer loans are charged off		120 days
Interest income not recognized until loan balance reduced, amount		$ 0
Net reduction of retained earnings		(888,971,000)	(858,864,000)	(726,781,000)	$ (636,590,000)
ACL Allocation		42,807,000	42,213,000
Allowance for credit losses		2,444,000	2,082,000	2,026,000	0
Deferred tax assets		$ 45,389,000	39,292,000
Equipment loan term		60 months
Change in national retail sales forecast period		1 year
Change in national home price index forecast period		1 year
Change in national gross domestic product forecast period		1 year
Number of reportable segments \| reportableSegment	3	4
Payments Segment
Summary Of Significant Accounting Policies [Line Items]
Transactional payment and audit fees		$ 13,694,000	$ 7,451,000	127,000
Cash Flow Hedging
Summary Of Significant Accounting Policies [Line Items]
Number of instruments held \| derivativeInstument		1	1
Fair Value Hedging
Summary Of Significant Accounting Policies [Line Items]
Number of instruments held \| derivativeInstument		0	0
Automobiles
Summary Of Significant Accounting Policies [Line Items]
Useful life of assets		5 years
Aircraft
Summary Of Significant Accounting Policies [Line Items]
Useful life of assets		20 years
Retained Earnings
Summary Of Significant Accounting Policies [Line Items]
Net reduction of retained earnings		$ (498,456,000)	$ (399,351,000)	(289,583,000)	(229,030,000)
Cumulative Effect, Period of Adoption, Adjustment
Summary Of Significant Accounting Policies [Line Items]
Net reduction of retained earnings					1,770,000
ACL Allocation					269,000
Allowance for credit losses			$ 0	$ 0	126,000
Credit loss, liability					1,918,000
Deferred tax assets					543,000
Cumulative Effect, Period of Adoption, Adjustment \| Retained Earnings
Summary Of Significant Accounting Policies [Line Items]
Net reduction of retained earnings					$ 1,770,000
Minimum
Summary Of Significant Accounting Policies [Line Items]
Nonaccrual status term		90 days
Estimated useful lives		4 years
Minimum \| Capitalized Software
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives		3 years
Minimum \| Buildings
Summary Of Significant Accounting Policies [Line Items]
Useful life of assets		5 years
Minimum \| Furniture, fixtures and equipment
Summary Of Significant Accounting Policies [Line Items]
Useful life of assets		3 years
Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives		11 years
Maximum \| Capitalized Software
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives		5 years
Maximum \| Buildings
Summary Of Significant Accounting Policies [Line Items]
Useful life of assets		40 years
Maximum \| Furniture, fixtures and equipment
Summary Of Significant Accounting Policies [Line Items]
Useful life of assets		10 years

Acquisitions and Divestitures - Summary of Assets and Liabilities in Disposal Group, Equipment Loan Sale (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Equipment Loans Disposal Group $ 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 - Narrative (Details) $ in Thousands									12 Months Ended
	Sep. 30, 2022	Sep. 06, 2022 USD ($)	Jun. 30, 2022 USD ($)	Jun. 23, 2022 USD ($)	Jun. 01, 2022 USD ($)	Jul. 08, 2021 USD ($)	Jun. 01, 2021 USD ($)	Jul. 08, 2020 USD ($) client shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 23, 2020 USD ($) shares
Business Acquisition [Line Items]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration]	Net gains (losses) on sale of loans	Net gains (losses) on sale of loans	Net gains (losses) on sale of loans	Net gains (losses) on sale of loans
Goodwill									$ 233,709	$ 233,727
Misdirected payments									4,120,291	4,867,572
Unsecured federal funds line of credit									227,500
Other income											$ 50,627
Indemnification asset									3,896	4,786
Loans									4,077,484	4,825,359
Gain (loss) on indemnification asset										4,194
Factored receivables
Business Acquisition [Line Items]
Misdirected payments									1,237,449	1,699,537
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Equipment Loans Disposal Group
Business Acquisition [Line Items]
Return of premium liability				$ 708
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Factored Receivable Disposal Group
Business Acquisition [Line Items]
Revenue share asset		$ 1,027	$ 5,210						6,237
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Factored Receivable Disposal Group \| Factored receivables
Business Acquisition [Line Items]
Future gross monthly revenue to be received (as a percent)			15.00%
Fair Value, Measurements, Recurring
Business Acquisition [Line Items]
Indemnification asset									3,896	4,786
Level 3
Business Acquisition [Line Items]
Indemnification asset, expected cash payments to be received									4,101	5,038
Level 3 \| Fair Value, Measurements, Recurring
Business Acquisition [Line Items]
Indemnification asset									3,896	4,786
Over-Formula Advances \| Factored receivables
Business Acquisition [Line Items]
Misdirected payments									$ 8,202	10,077
Maximum
Business Acquisition [Line Items]
Estimated useful lives									11 years
Maximum \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Factored Receivable Disposal Group \| Factored receivables
Business Acquisition [Line Items]
Future gross monthly revenue to be received (as a percent)		20.00%
Minimum
Business Acquisition [Line Items]
Estimated useful lives									4 years
Minimum \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Factored Receivable Disposal Group \| Factored receivables
Business Acquisition [Line Items]
Future gross monthly revenue to be received (as a percent)		15.00%
Capitalized Software \| Maximum
Business Acquisition [Line Items]
Estimated useful lives									5 years
Capitalized Software \| Minimum
Business Acquisition [Line Items]
Estimated useful lives									3 years
HubTran, Inc.
Business Acquisition [Line Items]
Goodwill					$ 70,441		$ 73,697
Acquisition-related expenses										2,992
Cash paid					97,096		97,096
HubTran, Inc. \| Capitalized Software
Business Acquisition [Line Items]
Intangible assets					16,932		$ 16,932
Estimated useful lives							4 years
HubTran, Inc. \| Customer Relationships
Business Acquisition [Line Items]
Intangible assets					$ 10,360		$ 10,360
Estimated useful lives							11 years
Transport Financial Solutions
Business Acquisition [Line Items]
Goodwill						$ 4,525		$ 4,466
Estimated useful lives								8 years
Cash paid						108,375		$ 108,375
Equity issued (in shares) \| shares								630,268
Stock consideration						13,942		$ 13,942
Number of large clients \| client								3
Portion of purchase price returned (in shares) \| shares												630,268
Receivable due from seller subsequent to liquidation of stock consideration						17,196		$ 17,196
Proceeds from sale of acquired stock											28,064
Other income											10,868
Intangible assets						3,500		3,500
Indemnification asset						$ 30,959		30,959
Indemnification asset, charge off										41,265
Indemnification asset, allowance for credit loss, loss expense										2,844
Reduction in required ACL									$ 1,874
Expenses related to the acquisition											$ 827
Transport Financial Solutions \| Covenant Logistics Group, Inc.
Business Acquisition [Line Items]
Loans										35,633
Transport Financial Solutions \| Indemnification Agreement
Business Acquisition [Line Items]
Percent indemnified, first portion												100.00%
First increment of losses incurred												$ 30,000
Percent indemnified, second portion												50.00%
Second increment of losses incurred												$ 30,000
Total indemnification amount												45,000
Collateral held by third parties												60,000
Transport Financial Solutions \| Indemnification Agreement \| Covenant Logistics Group, Inc.
Business Acquisition [Line Items]
Unsecured federal funds line of credit												45,000
Line of credit facility, remaining borrowing capacity										$ 9,361
Transport Financial Solutions \| Over-Formula Advances
Business Acquisition [Line Items]
Misdirected payments								62,200				$ 62,200
Transport Financial Solutions \| Maximum
Business Acquisition [Line Items]
Contingent consideration								$ 9,900

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	Dec. 31, 2022	Sep. 06, 2022	Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets sold	$ 88,036	$ 20,148	$ 67,888
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
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Factored receivables	88,019	20,131	67,888
Accrued interest and fee income	$ 17	$ 17	$ 0

Acquisitions and Divestitures - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed, HubTran, Inc. (Details) - USD ($) $ in Thousands			12 Months Ended
	Jun. 01, 2022	Jun. 01, 2021	Dec. 31, 2022	Jun. 01, 2022	Dec. 31, 2021
Consideration:
Goodwill			$ 233,709		$ 233,727
Goodwill, measurement period adjustments			$ (18)		$ (3,179)
HubTran, Inc.
Assets acquired:
Cash	$ 170	$ 170		$ 170
Other assets	1,570	1,546		1,570
Other assets, measurement period adjustments				24
Total assets	29,032	29,008		29,032
Total assets, measurement period adjustments				24
Liabilities assumed:
Deferred income taxes	1,455	4,703		1,455
Deferred income taxes, measurement period adjustments				(3,248)
Other liabilities	922	906		922
Other liabilities, measurement period adjustments				16
Total liabilities	2,377	5,609		2,377
Total liabilities, measurement period adjustments				(3,232)
Fair value of net assets acquired	26,655	23,399		26,655
Fair value of net assets acquired, measurement period adjustments				3,256
Consideration:
Cash paid	97,096	97,096
Goodwill	70,441	73,697		70,441
Goodwill, measurement period adjustments				(3,256)
HubTran, Inc. \| Capitalized Software
Assets acquired:
Intangible assets	16,932	16,932		16,932
HubTran, Inc. \| Customer Relationships
Assets acquired:
Intangible assets	$ 10,360	$ 10,360		$ 10,360

Acquisitions and Divestitures - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed, Transport Financial Solutions (Details) - USD ($) $ in Thousands			12 Months Ended
	Jul. 08, 2021	Jul. 08, 2020	Dec. 31, 2022	Dec. 31, 2021	Jul. 08, 2021
Consideration:
Goodwill			$ 233,709	$ 233,727
Goodwill, measurement period adjustments			$ (18)	$ (3,179)
Transport Financial Solutions
Assets acquired:
Factored receivables	$ 107,524	$ 107,524			$ 107,524
Allowance for credit losses	(37,415)	(37,415)			(37,415)
Factored receivables, net of ACL	70,109	70,109			70,109
Intangible assets	3,500	3,500			3,500
Indemnification asset	30,959	30,959			30,959
Deferred income taxes	1,389	1,448			1,389
Deferred income taxes, measurement period adjustments					(59)
Total assets	105,957	106,016			105,957
Total assets, measurement period adjustments					(59)
Liabilities assumed:
Deposits	5,361	5,361			5,361
Total liabilities	5,361	5,361			5,361
Fair value of net assets acquired	100,596	100,655			100,596
Fair value of net assets acquired, measurement period adjustments					(59)
Consideration:
Cash paid	108,375	108,375
Stock consideration	13,942	13,942
Receivable due from seller subsequent to liquidation of stock consideration	(17,196)	(17,196)			(17,196)
Total consideration	105,121	105,121
Goodwill	$ 4,525	$ 4,466			4,525
Goodwill, measurement period adjustments					$ 59

Acquisitions and Divestitures - Summary of Assets Held for Sale and Consideration Received and Gain on Sale (Details) - USD ($) $ in Thousands		12 Months Ended
	Apr. 20, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Carrying amount of liabilities in the disposal group:
Gain on sale of division, net of transaction costs		$ 0	$ 0	$ 9,758
Triumph Premium Finance
Carrying amount of assets in the disposal group:
Loans	$ 84,504
Premises and equipment, net	45
Other assets	11
Assets sold	84,560
Carrying amount of liabilities in the disposal group:
Other liabilities	479
Net assets sold	84,081
Total consideration received	94,531
Gain on sale of division	10,450
Transaction costs	692
Gain on sale of division, net of transaction costs	$ 9,758

Securities - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) security investment	Dec. 31, 2021 USD ($) investment
Debt and Equity Securities, FV-NI [Line Items]
Securities - equity investments	$ 5,191	$ 5,504
Accrued interest	$ 2,593	$ 802
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Number of securities in an unrealized loss position \| security	141
Number of investments \| investment	3	3
Debt securities, held-to-maturity, nonaccrual	$ 5,051
Asset Pledged as Collateral
Debt and Equity Securities, FV-NI [Line Items]
Debt securities	93,813	$ 72,805
Mutual fund
Debt and Equity Securities, FV-NI [Line Items]
Securities - equity investments	$ 5,191	$ 5,504

Securities - Schedule of Gross Realized and Unrealized Gains (Losses) Recognized on Equity Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Unrealized gains (losses) on equity securities still held at the reporting date	$ (313)	$ (322)	$ 389
Realized gains (losses) on equity securities sold during the period	0	0	0
Gross realized and unrealized gains (losses) recognized on equity securities	$ (313)	$ (322)	$ 389

Securities - Summary of Equity Securities without Readily Determinable Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Equity Securities without readily determinable fair value, at cost	$ 39,019	$ 14,671
Upward adjustments based on observable price changes, cumulative	10,163	0
Equity Securities without readily determinable fair value, carrying value	$ 49,182	$ 14,671

Securities - Gross Realized and Unrealized Gains (Losses) on Equity Securities without Readily Determinable Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Unrealized gains (losses) on equity securities still held at the reporting date	$ 10,163	$ 0	$ 0
Realized gains (losses) on equity securities sold during the period	0	0	0
Equity securities without readily determinable fair value, upward price adjustment, annual amount	$ 10,163	$ 0	$ 0

Securities - Schedule of Amortized Cost of Securities and Their Estimated Fair Values (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Available for sale securities:
Amortized Cost	$ 263,519	$ 178,064
Gross Unrealized Gains	427	4,573
Gross Unrealized Losses	(9,442)	(211)
Allowance for Credit Losses	0	0
Fair Value	254,504	182,426
Held to maturity securities:
Fair Value	5,476	5,447
Allowance for credit losses	(2,444)	(2,082)	$ (2,026)	$ 0
Total held to maturity securities, net of ACL	4,077	4,947
Mortgage-backed securities, residential
Available for sale securities:
Amortized Cost	55,329	36,885
Gross Unrealized Gains	235	720
Gross Unrealized Losses	(4,931)	(156)
Allowance for Credit Losses	0	0
Fair Value	50,633	37,449
Asset-backed securities
Available for sale securities:
Amortized Cost	6,389	6,763
Gross Unrealized Gains	0	2
Gross Unrealized Losses	(58)	(1)
Allowance for Credit Losses	0	0
Fair Value	6,331	6,764
State and municipal
Available for sale securities:
Amortized Cost	13,553	26,309
Gross Unrealized Gains	1	516
Gross Unrealized Losses	(116)	0
Allowance for Credit Losses	0	0
Fair Value	13,438	26,825
CLO Securities
Available for sale securities:
Amortized Cost	185,068	103,579
Gross Unrealized Gains	161	3,109
Gross Unrealized Losses	(4,218)	(54)
Allowance for Credit Losses	0	0
Fair Value	181,011	106,634
Held to maturity securities:
Amortized Cost	6,521	7,029
Gross Unrecognized Gains	458	0
Gross Unrecognized Losses	(1,503)	(1,582)
Fair Value	5,476	5,447
Allowance for credit losses	(2,444)	(2,082)
Total held to maturity securities, net of ACL	4,077	4,947
Corporate bonds
Available for sale securities:
Amortized Cost	1,270	1,992
Gross Unrealized Gains	1	64
Gross Unrealized Losses	(8)	0
Allowance for Credit Losses	0	0
Fair Value	1,263	2,056
SBA pooled securities
Available for sale securities:
Amortized Cost	1,910	2,536
Gross Unrealized Gains	29	162
Gross Unrealized Losses	(111)	0
Allowance for Credit Losses	0	0
Fair Value	$ 1,828	$ 2,698

Securities - Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Available for Sale Securities, Amortized Cost
Due in one year or less, amortized cost	$ 1,801
Due from one year to five years, amortized cost	2,010
Due from five years to ten years, amortized cost	53,148
Due after ten years, amortized cost	142,932
Available for sale securities, with single maturity date, amortized cost	199,891
Amortized Cost	263,519	$ 178,064
Available for Sale Securities, Fair Value
Due in one year or less, fair value	1,798
Due from one year to five years, fair value	1,982
Due from five years to ten years, fair value	51,897
Due after ten years, fair value	140,035
Available for sale securities, with single maturity date, fair value	195,712
Available for Sale Securities, Fair Value	254,504	182,426
Held to Maturity Securities, Amortized Cost
Due in one year or less, amortized cost	0
Due from one year to five years, amortized cost	0
Due from five years to ten years, amortized cost	6,521
Due after ten years, amortized cost	0
Held to maturity securities, with single maturity date, amortized cost	6,521
Amortized Cost	6,521
Held to Maturity Securities, Fair Value
Due in one year or less, fair value	0
Due from one year to five years, fair value	0
Due from five years to ten years, fair value	5,476
Due after ten years, fair value	0
Held to maturity securities, with single maturity date, fair value	5,476
Held to Maturity Securities, Fair Value	5,476	5,447
Mortgage-backed securities, residential
Available for Sale Securities, Amortized Cost
Available for sale securities, without single maturity date, amortized cost	55,329
Amortized Cost	55,329	36,885
Available for Sale Securities, Fair Value
Securities- held to maturity, net of allowance for credit losses, fair value	50,633
Available for Sale Securities, Fair Value	50,633	37,449
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	6,389
Amortized Cost	6,389	6,763
Available for Sale Securities, Fair Value
Securities- held to maturity, net of allowance for credit losses, fair value	6,331
Available for Sale Securities, Fair Value	6,331	6,764
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	1,910
Amortized Cost	1,910	2,536
Available for Sale Securities, Fair Value
Securities- held to maturity, net of allowance for credit losses, fair value	1,828
Available for Sale Securities, Fair Value	1,828	$ 2,698
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 Proceeds from Sales of Debt Securities and the Associated Gross Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Proceeds	$ 40,163	$ 0	$ 70,198
Gross gains	2,514	0	3,233
Gross losses	0	0	(140)
Net gains and losses from calls of securities	$ (2)	$ 5	$ 133

Securities - Schedule of Information Pertaining to Debt Securities with Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	$ 193,142	$ 43,160
Less than 12 months, unrealized losses	(5,201)	(209)
12 months or more, fair value	40,261	5,005
12 months or more, unrealized losses	(4,241)	(2)
Total, fair value	233,403	48,165
Total, unrealized losses	(9,442)	(211)
Mortgage-backed securities, residential
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	26,030	20,386
Less than 12 months, unrealized losses	(1,507)	(155)
12 months or more, fair value	15,828	6
12 months or more, unrealized losses	(3,424)	(1)
Total, fair value	41,858	20,392
Total, unrealized losses	(4,931)	(156)
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	1,337	37
Less than 12 months, unrealized losses	(52)	0
12 months or more, fair value	4,994	4,999
12 months or more, unrealized losses	(6)	(1)
Total, fair value	6,331	5,036
Total, unrealized losses	(58)	(1)
State and municipal
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	12,680	30
Less than 12 months, unrealized losses	(116)	0
12 months or more, fair value	0	0
12 months or more, unrealized losses	0	0
Total, fair value	12,680	30
Total, unrealized losses	(116)	0
CLO Securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	151,572	22,707
Less than 12 months, unrealized losses	(3,407)	(54)
12 months or more, fair value	19,439	0
12 months or more, unrealized losses	(811)	0
Total, fair value	171,011	22,707
Total, unrealized losses	(4,218)	(54)
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	261	0
Less than 12 months, unrealized losses	(8)	0
12 months or more, fair value	0	0
12 months or more, unrealized losses	0	0
Total, fair value	261	0
Total, unrealized losses	(8)	0
SBA pooled securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	1,262	0
Less than 12 months, unrealized losses	(111)	0
12 months or more, fair value	0	0
12 months or more, unrealized losses	0	0
Total, fair value	1,262	0
Total, unrealized losses	$ (111)	$ 0

Securities - Summary of Activity in Allowance for Credit Losses for Held To Maturity Debt Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 2,082	$ 2,026	$ 0
Credit loss expense (benefit)	362	56	1,900
Allowance for credit losses ending balance	2,444	2,082	2,026
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 0	0	126
Allowance for credit losses ending balance		$ 0	$ 0

Loans and Allowance for Credit Losses - Schedule of Loans Held for Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	$ 5,641	$ 7,330
1-4 family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	0	712
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for sale	$ 5,641	$ 6,618

Loans and Allowance for Credit Losses - Schedule of Amortized Cost and Unpaid Principal for Loans Held for Investment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 4,120,291	$ 4,867,572
Unpaid Principal	4,136,981	4,884,644
Difference	(16,690)	(17,072)
Allowance for credit losses	(42,807)	(42,213)
Loans, net	4,077,484	4,825,359
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	678,144	632,775
Unpaid Principal	679,239	634,319
Difference	(1,095)	(1,544)
Construction, land development, land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	90,976	123,464
Unpaid Principal	91,147	123,643
Difference	(171)	(179)
1-4 family residential properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	125,981	123,115
Unpaid Principal	126,185	123,443
Difference	(204)	(328)
Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	68,934	77,394
Unpaid Principal	69,185	77,905
Difference	(251)	(511)
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,251,110	1,430,429
Unpaid Principal	1,262,493	1,440,542
Difference	(11,383)	(10,113)
Factored receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,237,449	1,699,537
Unpaid Principal	1,241,032	1,703,936
Difference	(3,583)	(4,399)
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	8,868	10,885
Unpaid Principal	8,871	10,883
Difference	(3)	2
Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	658,829	769,973
Unpaid Principal	658,829	769,973
Difference	$ 0	$ 0

Loans and Allowance for Credit Losses - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Premiums and discounts on acquired loans	$ 13,383	$ 11,723
Net deferred origination and factoring fees	3,307	5,349
Accrued interest on loans	$ 19,279	$ 14,513
Majority of factored receivables percentage of loan portfolio	96.00%	91.00%
Percentage of total loan portfolio on factored receivables	29.00%	32.00%
Misdirected payments	$ 4,120,291	$ 4,867,572
Pledged loans	1,356,922	1,733,917
Credit loss expense (benefit)	6,925	(8,830)	$ 38,329
Total Nonaccrual	18,296	15,034
Interest earned on nonaccrual loans	0	0	$ 0
Recorded investments in troubled debt restructurings	2,400	4,677
ACL Allocation	$ 42,807	$ 42,213
Number of defaults on modified loans \| loan	1	3	1
Recorded investments in troubled debt restructurings with subsequent default	$ 44	$ 1,681	$ 5,741
Number of loans in deferral \| loan	0
Troubled Debt Restructuring
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Nonaccrual	$ 1,897	3,912
ACL Allocation	1,067	1,068
Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Misdirected payments	41,367	46,433
Changes In Allowance For Credit Losses
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowances for credit losses attributable to change in loss drivers	1,769
Loans Held for Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net charge-offs	6,445	45,562
Credit loss expense (benefit)	7,039	(7,964)	33,981
ACL Allocation	42,807	42,213	95,739	$ 29,092
Factored receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer reserves	249,288	254,970
Misdirected payments	1,237,449	1,699,537
Total Nonaccrual	0	0
Factored receivables \| Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Misdirected payments	37,142	39,134
Factored receivables \| Over-Formula Advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Misdirected payments	8,202	10,077
Net charge-offs		41,265
Factored receivables \| Over-Formula Advances \| Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Nonaccrual	8,202	10,077
Factored receivables \| Misdirected Payments Receivable \| United States Postal Service
Accounts, Notes, Loans and Financing Receivable [Line Items]
Misdirected payments	19,361	19,361
Factored receivables \| Loans Held for Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Credit loss expense (benefit)	3,045	10,038	16,079
ACL Allocation	19,121	20,915	56,463	7,657
1-4 family residential properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Misdirected payments	125,981	123,115
Total Nonaccrual	1,391	1,683
1-4 family residential properties \| Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Misdirected payments	776	1,114
1-4 family residential properties \| Real Eatate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential real estate loans in process of foreclosure	129	301
1-4 family residential properties \| Loans Held for Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Credit loss expense (benefit)	363	(849)	378
ACL Allocation	$ 838	$ 468	$ 1,225	$ 308
Texas, Colorado, Illinois, And Iowa \| Accounts Receivable \| Geographic Concentration Risk
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of customers located within states	51.00%	57.00%
Texas \| Accounts Receivable \| Geographic Concentration Risk
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of customers located within states	23.00%	21.00%
Colorado \| Accounts Receivable \| Geographic Concentration Risk
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of customers located within states	11.00%	15.00%
Illinois \| Accounts Receivable \| Geographic Concentration Risk
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of customers located within states	11.00%	15.00%
Iowa \| Accounts Receivable \| Geographic Concentration Risk
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of customers located within states	6.00%	6.00%

Loans and Allowance for Credit Losses - Summary of Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 42,213
Credit Loss Expense (Benefit)	6,925	$ (8,830)	$ 38,329
Ending Balance	42,807	42,213
Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	42,213	95,739	29,092
Credit Loss Expense (Benefit)	7,039	(7,964)	33,981
Charge-offs	(8,601)	(46,946)	(6,488)
Recoveries	2,156	1,384	1,919
Initial ACL on Loans Purchased with Credit Deterioration			37,415
Reclassification To Held For Sale			(449)
Ending Balance	42,807	42,213	95,739
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			269
Cumulative Effect, Period of Adoption, Adjustment \| Loans Held for Investment \| ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Impact of Adopting ASC 326			269
Commercial real estate \| Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	3,961	10,182	5,353
Credit Loss Expense (Benefit)	546	(6,214)	3,607
Charge-offs	(108)	(17)	(320)
Recoveries	60	10	170
Initial ACL on Loans Purchased with Credit Deterioration			0
Reclassification To Held For Sale			0
Ending Balance	4,459	3,961	10,182
Commercial real estate \| Cumulative Effect, Period of Adoption, Adjustment \| Loans Held for Investment \| ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Impact of Adopting ASC 326			1,372
Construction, land development, land \| Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	827	3,418	1,382
Credit Loss Expense (Benefit)	323	(2,584)	2,005
Charge-offs	0	(12)	(23)
Recoveries	5	5	241
Initial ACL on Loans Purchased with Credit Deterioration			0
Reclassification To Held For Sale			0
Ending Balance	1,155	827	3,418
Construction, land development, land \| Cumulative Effect, Period of Adoption, Adjustment \| Loans Held for Investment \| ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Impact of Adopting ASC 326			(187)
1-4 family residential properties \| Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	468	1,225	308
Credit Loss Expense (Benefit)	363	(849)	378
Charge-offs	0	(34)	(27)
Recoveries	7	126	53
Initial ACL on Loans Purchased with Credit Deterioration			0
Reclassification To Held For Sale			0
Ending Balance	838	468	1,225
1-4 family residential properties \| Cumulative Effect, Period of Adoption, Adjustment \| Loans Held for Investment \| ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Impact of Adopting ASC 326			513
Farmland \| Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	562	832	670
Credit Loss Expense (Benefit)	(79)	(270)	(355)
Charge-offs	0	0	0
Recoveries	0	0	80
Initial ACL on Loans Purchased with Credit Deterioration			0
Reclassification To Held For Sale			0
Ending Balance	483	562	832
Farmland \| Cumulative Effect, Period of Adoption, Adjustment \| Loans Held for Investment \| ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Impact of Adopting ASC 326			437
Commercial \| Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	14,485	22,040	12,566
Credit Loss Expense (Benefit)	2,713	(7,725)	11,336
Charge-offs	(2,205)	(481)	(2,344)
Recoveries	925	651	1,115
Initial ACL on Loans Purchased with Credit Deterioration			0
Reclassification To Held For Sale			(449)
Ending Balance	15,918	14,485	22,040
Commercial \| Cumulative Effect, Period of Adoption, Adjustment \| Loans Held for Investment \| ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Impact of Adopting ASC 326			(184)
Factored receivables \| Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	20,915	56,463	7,657
Credit Loss Expense (Benefit)	3,045	10,038	16,079
Charge-offs	(5,853)	(46,043)	(3,201)
Recoveries	1,014	457	143
Initial ACL on Loans Purchased with Credit Deterioration			37,415
Reclassification To Held For Sale			0
Ending Balance	19,121	20,915	56,463
Factored receivables \| Cumulative Effect, Period of Adoption, Adjustment \| Loans Held for Investment \| ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Impact of Adopting ASC 326			(1,630)
Consumer \| Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	226	542	488
Credit Loss Expense (Benefit)	239	(92)	562
Charge-offs	(435)	(359)	(573)
Recoveries	145	135	117
Initial ACL on Loans Purchased with Credit Deterioration			0
Reclassification To Held For Sale			0
Ending Balance	175	226	542
Consumer \| Cumulative Effect, Period of Adoption, Adjustment \| Loans Held for Investment \| ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Impact of Adopting ASC 326			(52)
Mortgage warehouse \| Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	769	1,037	668
Credit Loss Expense (Benefit)	(111)	(268)	369
Charge-offs	0	0	0
Recoveries	0	0	0
Initial ACL on Loans Purchased with Credit Deterioration			0
Reclassification To Held For Sale			0
Ending Balance	$ 658	$ 769	1,037
Mortgage warehouse \| Cumulative Effect, Period of Adoption, Adjustment \| Loans Held for Investment \| ASU 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Impact of Adopting ASC 326			$ 0

Loans and Allowance for Credit Losses - Summary of Amortized Cost Basis of Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Nonaccrual	$ 18,296	$ 15,034
Nonaccrual With No ACL	5,860	10,034
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Nonaccrual	871	2,025
Nonaccrual With No ACL	319	1,375
Construction, land development, land
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Nonaccrual	150	964
Nonaccrual With No ACL	150	964
1-4 family residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Nonaccrual	1,391	1,683
Nonaccrual With No ACL	1,238	1,582
Farmland
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Nonaccrual	400	2,044
Nonaccrual With No ACL	400	2,044
Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Nonaccrual	15,393	8,078
Nonaccrual With No ACL	3,662	3,910
Factored receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Nonaccrual	0	0
Nonaccrual With No ACL	0	0
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Nonaccrual	91	240
Nonaccrual With No ACL	91	159
Mortgage warehouse
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Nonaccrual	0	0
Nonaccrual With No ACL	$ 0	$ 0

Loans and Allowance for Credit Losses - Schedule of Accrued Interest on Non Accrual Loans Reversed Through Interest Income (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest reversed through interest income	$ 31	$ 56	$ 598
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest reversed through interest income	0	8	438
Construction, land development, land
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest reversed through interest income	2	0	1
1-4 family residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest reversed through interest income	1	3	32
Farmland
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest reversed through interest income	0	6	39
Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest reversed through interest income	28	36	86
Factored receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest reversed through interest income	0	0	0
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest reversed through interest income	0	3	2
Mortgage warehouse
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest reversed through interest income	$ 0	$ 0	$ 0

Loans and Allowance for Credit Losses - Schedule of Nonperforming Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans	$ 18,296	$ 15,034
Factored receivables greater than 90 days past due	37,142	39,268
Troubled Debt Restructuring
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans	1,897	3,912
Factored receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans	0	0
Factored receivables greater than 90 days past due	37,142	39,134
Nonperforming Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans	18,296	15,034
Other nonperforming factored receivables	491	1,428
Troubled debt restructurings accruing interest	503	765
Total loans	48,230	46,284
Nonperforming Loans \| Factored receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Factored receivables greater than 90 days past due	$ 28,940	$ 29,057

Loans and Allowance for Credit Losses - Summary of Risk Category Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	$ 2,600,923	$ 3,242,129
One year before current year	396,193	678,397
Two years before current year	385,777	155,798
Three years before current year	80,301	84,594
Four years before current year	34,304	85,116
Five years before current year	91,678	91,906
Revolving Loans	530,450	529,024
Revolving Loans Converted To Term Loans	665	608
Total	4,120,291	4,867,572
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	235,095	213,967
One year before current year	157,446	253,010
Two years before current year	200,396	50,264
Three years before current year	28,072	25,930
Four years before current year	17,786	47,463
Five years before current year	35,674	37,290
Revolving Loans	3,675	4,851
Revolving Loans Converted To Term Loans	0	0
Total	678,144	632,775
Construction, land development, land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	71,236	58,914
One year before current year	11,328	33,764
Two years before current year	4,540	4,744
Three years before current year	3,186	23,696
Four years before current year	35	1,199
Five years before current year	651	1,139
Revolving Loans	0	8
Revolving Loans Converted To Term Loans	0	0
Total	90,976	123,464
1-4 family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	26,443	27,113
One year before current year	22,838	15,428
Two years before current year	9,543	9,538
Three years before current year	2,982	6,532
Four years before current year	3,529	8,655
Five years before current year	21,916	23,240
Revolving Loans	38,430	32,291
Revolving Loans Converted To Term Loans	300	318
Total	125,981	123,115
Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	19,252	14,586
One year before current year	10,087	14,008
Two years before current year	10,147	8,485
Three years before current year	2,807	8,373
Four years before current year	6,742	10,168
Five years before current year	18,679	20,090
Revolving Loans	1,016	1,443
Revolving Loans Converted To Term Loans	204	241
Total	68,934	77,394
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	369,704	475,571
One year before current year	192,512	339,604
Two years before current year	140,402	82,098
Three years before current year	42,950	19,498
Four years before current year	5,938	15,088
Five years before current year	12,261	8,160
Revolving Loans	487,182	490,361
Revolving Loans Converted To Term Loans	161	49
Total	1,251,110	1,430,429
Factored receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	1,217,596	1,678,748
One year before current year	0	20,789
Two years before current year	19,853	0
Three years before current year	0	0
Four years before current year	0	0
Five years before current year	0	0
Revolving Loans	0	0
Revolving Loans Converted To Term Loans	0	0
Total	1,237,449	1,699,537
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	2,768	3,257
One year before current year	1,982	1,794
Two years before current year	896	669
Three years before current year	304	565
Four years before current year	274	2,543
Five years before current year	2,497	1,987
Revolving Loans	147	70
Revolving Loans Converted To Term Loans	0	0
Total	8,868	10,885
Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	658,829	769,973
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Five years before current year	0	0
Revolving Loans	0	0
Revolving Loans Converted To Term Loans	0	0
Total	658,829	769,973
Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	2,572,361	3,216,480
One year before current year	382,067	646,539
Two years before current year	360,168	150,023
Three years before current year	79,063	83,685
Four years before current year	34,199	84,733
Five years before current year	90,206	89,813
Revolving Loans	530,088	528,359
Revolving Loans Converted To Term Loans	665	608
Total	4,048,817	4,800,240
Pass \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	231,427	211,088
One year before current year	156,895	249,652
Two years before current year	198,541	50,223
Three years before current year	28,033	25,930
Four years before current year	17,786	47,447
Five years before current year	35,658	37,290
Revolving Loans	3,675	4,595
Revolving Loans Converted To Term Loans	0	0
Total	672,015	626,225
Pass \| Construction, land development, land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	71,236	56,764
One year before current year	11,328	33,756
Two years before current year	4,535	4,744
Three years before current year	3,186	23,696
Four years before current year	35	1,199
Five years before current year	506	994
Revolving Loans	0	8
Revolving Loans Converted To Term Loans	0	0
Total	90,826	121,161
Pass \| 1-4 family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	26,306	26,840
One year before current year	22,639	15,195
Two years before current year	9,536	9,485
Three years before current year	2,929	6,526
Four years before current year	3,528	8,591
Five years before current year	20,910	22,151
Revolving Loans	38,361	32,210
Revolving Loans Converted To Term Loans	300	318
Total	124,509	121,316
Pass \| Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	18,190	14,387
One year before current year	7,291	13,396
Two years before current year	10,027	7,892
Three years before current year	2,699	8,040
Four years before current year	6,742	10,040
Five years before current year	18,569	19,792
Revolving Loans	1,016	1,317
Revolving Loans Converted To Term Loans	204	241
Total	64,738	75,105
Pass \| Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	358,983	466,254
One year before current year	181,933	332,746
Two years before current year	136,635	77,010
Three years before current year	41,912	18,940
Four years before current year	5,842	15,032
Five years before current year	12,145	7,704
Revolving Loans	486,889	490,159
Revolving Loans Converted To Term Loans	161	49
Total	1,224,500	1,407,894
Pass \| Factored receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	1,204,622	1,667,922
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Five years before current year	0	0
Revolving Loans	0	0
Revolving Loans Converted To Term Loans	0	0
Total	1,204,622	1,667,922
Pass \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	2,768	3,252
One year before current year	1,981	1,794
Two years before current year	894	669
Three years before current year	304	553
Four years before current year	266	2,424
Five years before current year	2,418	1,882
Revolving Loans	147	70
Revolving Loans Converted To Term Loans	0	0
Total	8,778	10,644
Pass \| Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	658,829	769,973
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Five years before current year	0	0
Revolving Loans	0	0
Revolving Loans Converted To Term Loans	0	0
Total	658,829	769,973
Classified
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	28,562	25,649
One year before current year	14,126	31,858
Two years before current year	25,609	5,775
Three years before current year	1,238	909
Four years before current year	105	383
Five years before current year	1,472	2,093
Revolving Loans	362	665
Revolving Loans Converted To Term Loans	0	0
Total	71,474	67,332
Classified \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	3,668	2,879
One year before current year	551	3,358
Two years before current year	1,855	41
Three years before current year	39	0
Four years before current year	0	16
Five years before current year	16	0
Revolving Loans	0	256
Revolving Loans Converted To Term Loans	0	0
Total	6,129	6,550
Classified \| Construction, land development, land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	0	2,150
One year before current year	0	8
Two years before current year	5	0
Three years before current year	0	0
Four years before current year	0	0
Five years before current year	145	145
Revolving Loans	0	0
Revolving Loans Converted To Term Loans	0	0
Total	150	2,303
Classified \| 1-4 family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	137	273
One year before current year	199	233
Two years before current year	7	53
Three years before current year	53	6
Four years before current year	1	64
Five years before current year	1,006	1,089
Revolving Loans	69	81
Revolving Loans Converted To Term Loans	0	0
Total	1,472	1,799
Classified \| Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	1,062	199
One year before current year	2,796	612
Two years before current year	120	593
Three years before current year	108	333
Four years before current year	0	128
Five years before current year	110	298
Revolving Loans	0	126
Revolving Loans Converted To Term Loans	0	0
Total	4,196	2,289
Classified \| Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	10,721	9,317
One year before current year	10,579	6,858
Two years before current year	3,767	5,088
Three years before current year	1,038	558
Four years before current year	96	56
Five years before current year	116	456
Revolving Loans	293	202
Revolving Loans Converted To Term Loans	0	0
Total	26,610	22,535
Classified \| Factored receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	12,974	10,826
One year before current year	0	20,789
Two years before current year	19,853	0
Three years before current year	0	0
Four years before current year	0	0
Five years before current year	0	0
Revolving Loans	0	0
Revolving Loans Converted To Term Loans	0	0
Total	32,827	31,615
Classified \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	0	5
One year before current year	1	0
Two years before current year	2	0
Three years before current year	0	12
Four years before current year	8	119
Five years before current year	79	105
Revolving Loans	0	0
Revolving Loans Converted To Term Loans	0	0
Total	90	241
Classified \| Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current year	0	0
One year before current year	0	0
Two years before current year	0	0
Three years before current year	0	0
Four years before current year	0	0
Five years before current year	0	0
Revolving Loans	0	0
Revolving Loans Converted To Term Loans	0	0
Total	$ 0	$ 0

Loans and Allowance for Credit Losses - Schedule of Loans Modified as Troubled Debt Restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications	$ 45	$ 1,438	$ 19,964
Number of Loans \| loan	1	3	29
Extended Amortization Period
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications	$ 45	$ 0	$ 8,208
Payment Deferrals
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications	0	697	11,756
Protective Advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications	0	741	0
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications	$ 45	$ 697	$ 14,591
Number of Loans \| loan	1	2	22
Commercial \| Extended Amortization Period
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications	$ 45	$ 0	$ 4,714
Commercial \| Payment Deferrals
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications	0	697	9,877
Commercial \| Protective Advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications	$ 0	0	0
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications		$ 741	$ 727
Number of Loans \| loan		1	3
Commercial real estate \| Extended Amortization Period
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications		$ 0	$ 0
Commercial real estate \| Payment Deferrals
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications		0	727
Commercial real estate \| Protective Advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications		$ 741	0
Construction, land development, land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			$ 989
Number of Loans \| loan			2
Construction, land development, land \| Extended Amortization Period
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			$ 8
Construction, land development, land \| Payment Deferrals
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			981
Construction, land development, land \| Protective Advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			0
1-4 family residential properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			$ 171
Number of Loans \| loan			1
1-4 family residential properties \| Extended Amortization Period
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			$ 0
1-4 family residential properties \| Payment Deferrals
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			171
1-4 family residential properties \| Protective Advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			0
Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			$ 3,486
Number of Loans \| loan			1
Farmland \| Extended Amortization Period
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			$ 3,486
Farmland \| Payment Deferrals
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			0
Farmland \| Protective Advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Modifications			$ 0

Loans and Allowance for Credit Losses - Summary of Loans Modified for Borrowers Impacted by COVID-19 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Modified during period	$ 0	$ 10,801	$ 628,022

Loans and Allowance for Credit Losses - Summary of Amortized Cost of Loans Currently in Deferral (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 4,867,572	$ 4,120,291
Balance of Loans Currently in Deferral	$ 31,896
Percentage of Portfolio	0.70%
Accrued Interest Receivable	$ 124
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	632,775	678,144
Balance of Loans Currently in Deferral	$ 30,212
Percentage of Portfolio	4.80%
Accrued Interest Receivable	$ 116
Construction, land development, land
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	123,464	90,976
Balance of Loans Currently in Deferral	$ 1,340
Percentage of Portfolio	1.10%
Accrued Interest Receivable	$ 5
1-4 family residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	123,115	125,981
Balance of Loans Currently in Deferral	$ 0
Percentage of Portfolio	0.00%
Accrued Interest Receivable	$ 0
Farmland
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	77,394	68,934
Balance of Loans Currently in Deferral	$ 338
Percentage of Portfolio	0.40%
Accrued Interest Receivable	$ 3
Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	1,430,429	1,251,110
Balance of Loans Currently in Deferral	$ 0
Percentage of Portfolio	0.00%
Accrued Interest Receivable	$ 0
Factored receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	1,699,537	1,237,449
Balance of Loans Currently in Deferral	$ 0
Percentage of Portfolio	0.00%
Accrued Interest Receivable	$ 0
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	10,885	8,868
Balance of Loans Currently in Deferral	$ 6
Percentage of Portfolio	0.10%
Accrued Interest Receivable	$ 0
Mortgage warehouse
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	769,973	$ 658,829
Balance of Loans Currently in Deferral	$ 0
Percentage of Portfolio	0.00%
Accrued Interest Receivable	$ 0

Other Real Estate Owned - Schedule of Other Real Estate Owned Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Real Estate Owned Valuation Allowance [Roll Forward]
Beginning balance	$ 524	$ 1,432	$ 3,009
Loans transferred to OREO	47	692	1,150
Net OREO gains (losses) and valuation adjustments	(133)	(347)	(616)
Sales of OREO	(438)	(1,253)	(2,111)
Ending balance	$ 0	$ 524	$ 1,432

Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 150,881	$ 145,696
Accumulated depreciation	(47,542)	(39,967)
Premises and equipment, net	103,339	105,729
Land
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	13,080	12,992
Buildings
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	55,001	52,558
Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	37,406	35,235
Automobiles and aircraft
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	9,929	9,820
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 35,465	$ 35,091

Premises and Equipment - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation	$ 13,302	$ 12,037	$ 10,720
Total lease liability	34,035	35,828
Operating lease right-of-use asset	$ 30,973	$ 32,826
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other liabilities	Other liabilities
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets	Other assets
Remaining lease term	7 years 8 months 26 days	8 years 4 months 24 days
Discount rate (as a percent)	2.90%	2.00%

Premises and Equipment - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Operating lease cost	$ 4,242	$ 4,538	$ 5,290
Variable lease cost	880	443	422
Total lease cost	$ 5,122	$ 4,981	$ 5,712

Premises and Equipment - Schedule of Total Operating Lease Liability (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Within one year	$ 5,515
After one but within two years	5,275
After two but within three years	5,181
After three but within four years	4,922
After four but within five years	4,770
After five years	12,848
Total undiscounted cash flows	38,511
Discount on cash flows	(4,476)
Total lease liability	$ 34,035	$ 35,828

Goodwill and Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill And Intangible Assets [Line Items]
Goodwill	$ 233,709	$ 233,727
Gross Carrying Amount	90,920	90,070
Accumulated Amortization	(58,862)	(46,941)
Net Carrying Amount	32,058	43,129
Core deposit intangibles
Goodwill And Intangible Assets [Line Items]
Gross Carrying Amount	43,578	43,578
Accumulated Amortization	(35,347)	(31,800)
Net Carrying Amount	8,231	11,778
Software intangible asset
Goodwill And Intangible Assets [Line Items]
Gross Carrying Amount	16,932	16,932
Accumulated Amortization	(6,702)	(2,469)
Net Carrying Amount	10,230	14,463
Other intangible assets
Goodwill And Intangible Assets [Line Items]
Gross Carrying Amount	30,410	29,560
Accumulated Amortization	(16,813)	(12,672)
Net Carrying Amount	$ 13,597	$ 16,888

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Goodwill and Intangible Assets - Schedule of Changes in Goodwill and Intangible Assets by Operating Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Goodwill and intangible assets, beginning	$ 276,856	$ 189,922	$ 190,286
Acquired goodwill	0	73,697	4,466
Acquired goodwill - measurement period adjustment	(18)	(3,179)
Acquired intangibles	851	27,292	3,500
Amortization of intangibles	(11,922)	(10,876)	(8,330)
Goodwill and intangible assets, ending	265,767	276,856	189,922
Operating Segments \| Banking
Goodwill [Roll Forward]
Goodwill and intangible assets, beginning	119,306	123,882	129,272
Acquired goodwill	0	0	0
Acquired goodwill - measurement period adjustment	0	0
Acquired intangibles	751	0	0
Amortization of intangibles	(3,761)	(4,576)	(5,390)
Goodwill and intangible assets, ending	116,296	119,306	123,882
Operating Segments \| Factoring
Goodwill [Roll Forward]
Goodwill and intangible assets, beginning	63,275	66,040	61,014
Acquired goodwill	0	0	4,466
Acquired goodwill - measurement period adjustment	0	59
Acquired intangibles	0	0	3,500
Amortization of intangibles	(2,293)	(2,824)	(2,940)
Goodwill and intangible assets, ending	60,982	63,275	66,040
Operating Segments \| Payments
Goodwill [Roll Forward]
Goodwill and intangible assets, beginning	94,275	0	0
Acquired goodwill	0	73,697	0
Acquired goodwill - measurement period adjustment	(18)	(3,238)
Acquired intangibles	0	27,292	0
Amortization of intangibles	(5,868)	(3,476)	0
Goodwill and intangible assets, ending	88,389	94,275	0
Operating Segments \| Corporate
Goodwill [Roll Forward]
Goodwill and intangible assets, beginning	0	0	0
Acquired goodwill	0	0	0
Acquired goodwill - measurement period adjustment	0	0
Acquired intangibles	100	0	0
Amortization of intangibles	0	0	0
Goodwill and intangible assets, ending	$ 100	$ 0	$ 0

Goodwill and Intangible Assets - Additional Information (Details)	12 Months Ended
	Dec. 31, 2022
Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	4 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	11 years

Goodwill and Intangible Assets - Schedule of Future Amortization Related to Company's Intangible Assets (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 10,482
2024	9,159
2025	5,400
2026	2,480
2027	1,571
Thereafter	2,115
Net Carrying Amount	31,207
Indefinite lived intangible assets	$ 851

Equity Method Investment - Additional Information (Details) $ in Thousands		12 Months Ended
	Jun. 10, 2022 USD ($) agreement	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Mar. 31, 2022 USD ($)	Oct. 17, 2019 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity securities without readily determinable fair value, upward price adjustment, annual amount		$ 10,163	$ 0	$ 0
Warehouse Solutions, Inc.
Schedule of Equity Method Investments [Line Items]
Equity method investments and warrants			$ 8,366			$ 8,000
Equity method investment, ownership percentage						8.00%
Equity method investment, ownership percentage to be purchased through exercise of warrant						10.00%
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	10.00%
Payment to acquire interest in common stock	$ 23,000
Sale of stock, percentage of ownership after transaction	18.00%
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

Equity Method Investment - Summary of Investment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Oct. 17, 2019
Schedule of Equity Method Investments [Line Items]
Total investment	$ 49,182	$ 14,671
Warehouse Solutions, Inc.
Schedule of Equity Method Investments [Line Items]
Total investment	$ 38,088
Common stock		5,142
Warrants		3,224
Total investment		$ 8,366	$ 8,000

Variable Interest Entities - Summary of Closed CLO Funds (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 20, 2017	Sep. 22, 2016	Jun. 02, 2016
Variable Interest Entity [Line Items]
Face Value	$ 109,500
Trinitas IV \| CLO securities
Variable Interest Entity [Line Items]
Face Value				$ 406,650
Trinitas V \| CLO securities
Variable Interest Entity [Line Items]
Face Value			$ 409,000
Trinitas VI \| CLO securities
Variable Interest Entity [Line Items]
Face Value		$ 717,100

Variable Interest Entities - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Securities - held to maturity	$ 4,077	$ 4,947
CLO securities
Variable Interest Entity [Line Items]
Securities - held to maturity	$ 4,077	$ 4,947

Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands		12 Months Ended
	May 04, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax		$ 9,316	$ (93)	$ (34)
Discontinued Cash Flow Hedge \| Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
Derivative [Line Items]
Derivative termination value		9,316
Other Assets \| Interest rate swaps \| Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount		200,000	$ 200,000
Interest Expense \| Discontinued Cash Flow Hedge
Derivative [Line Items]
Hedging termination fee	$ 732
Interest Expense \| Interest rate swaps
Derivative [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax		$ 465
Other Noninterest Income \| Discontinued Cash Flow Hedge
Derivative [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	$ 8,851

Derivative Financial Instruments - Schedule of Pre-Tax Impact of Terminated Cash Flow Hedge on AOCI (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
AOCI Attributable to Parent, Before Tax [Roll Forward]
Beginning balance	$ 858,864
Ending balance	888,971
Discontinued Cash Flow Hedge \| Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
AOCI Attributable to Parent, Before Tax [Roll Forward]
Beginning balance	0
Unrealized gains arising during the period	9,316
Reclassification adjustments for amortization of unrealized (gains) into net income	(9,316)
Ending balance	$ 0

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI https://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Derivative Financial Instruments - Fair Value by Balance Sheet Grouping (Details) - Interest rate swaps - Other Assets - Designated as Hedging Instrument - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Notional Amount	$ 200,000	$ 200,000
Fair Value Total		$ 6,164

Derivative Financial Instruments - Effect on Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivative and Included Component, net of tax	$ (4,705)	$ 4,066	$ 623
Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component	7,103	(71)	(26)
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivative and Included Component, net of tax	2,398	3,995	597
Interest rate swaps \| Interest Expense, Noninterest Income
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component	$ 7,103
Interest rate swaps \| Interest Expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component		$ (71)	$ (26)

Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deposits [Abstract]
Noninterest-bearing demand	$ 1,756,680	$ 1,925,370
Interest-bearing demand	856,512	830,019
Individual retirement accounts	68,125	83,410
Money market	508,534	520,358
Savings	551,780	504,146
Certificates of deposit	319,150	533,206
Brokered time deposits	110,555	40,125
Other brokered deposits	0	210,045
Total deposits	$ 4,171,336	$ 4,646,679

Deposits - Scheduled Maturities of Time Deposits, Including Certificates of Deposits, Individual Retirement Accounts and Brokered Deposits (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Deposits [Abstract]
Within one year	$ 435,978
After one but within two years	42,394
After two but within three years	9,509
After three but within four years	5,052
After four but within five years	4,897
Total	$ 497,830

Deposits - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deposits [Abstract]
Time deposits	$ 58,462	$ 116,977

Borrowings and Borrowing Capacity - Summary of Customer Repurchase Agreements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Amount outstanding at end of the year	$ 340	$ 2,103
Weighted average interest rate at end of the year	0.03%	0.03%
Average daily balance during the year	$ 6,701	$ 5,985
Weighted average interest rate during the year	0.03%	0.03%
Maximum month-end balance during the year	$ 13,463	$ 12,405

Borrowings and Borrowing Capacity - Summary of Customer Repurchase Agreements are Secured by Pledged Securities with Carrying Amount (Details) - Asset Pledged as Collateral - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Debt securities	$ 93,813	$ 72,805
Customer Repurchase Agreements
Debt Instrument [Line Items]
Debt securities	4,994	14,970
Asset-backed securities \| Customer Repurchase Agreements
Debt Instrument [Line Items]
Debt securities	4,994	4,999
CLO securities \| Customer Repurchase Agreements
Debt Instrument [Line Items]
Debt securities	$ 0	$ 9,971

Borrowings and Borrowing Capacity - Summary of FHLB Advances and Weighted Average Interest Rates by Contractual Maturity (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
2027, balance outstanding, variable rate	$ 30,000
2027, variable weighted average interest rate	4.25%

Borrowings and Borrowing Capacity - Summary of Information Concerning FHLB Advances (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Amount outstanding at end of the year	$ 30,000,000	$ 180,000,000
Weighted average interest rate at end of the year	4.25%	0.15%
Average daily balance during the year	$ 69,658,000	$ 37,671,000
Weighted average interest rate during the year	1.19%	0.24%
Maximum month-end balance during the year	$ 230,000,000	$ 180,000,000

Borrowings and Borrowing Capacity - Schedule of FHLB Advances (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Borrowing capacity	$ 676,307	$ 978,794
Borrowings outstanding	(30,000)	(180,000)
Unused borrowing capacity	$ 646,307	$ 798,794

Borrowings and Borrowing Capacity - Summary of Paycheck Protection Program Borrowings (Details) - Paycheck Protection Program - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Amount outstanding at end of period	$ 0	$ 27,144
Weighted average interest rate at end of period	0.00%	0.35%
Average amount outstanding during the period	$ 670	$ 118,880
Weighted average interest rate during the period	0.32%	0.35%
Highest month end balance during the period	$ 0	$ 181,635

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Borrowings and Borrowing Capacity - Additional Information (Details) $ in Thousands			12 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2022 USD ($) bank quarter	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Number of banks containing unsecured federal funds lines of credit \| bank			7
Unsecured federal funds line of credit			$ 227,500
Loans pledged as collateral			4,077,484	$ 4,825,359
Subordinated notes			107,800	106,957
Subordinated notes issued			109,500
Write off of deferred debt issuance cost	$ 755
Junior subordinated debentures			$ 41,158	40,602
Maximum
Debt Instrument [Line Items]
Maximum interest deferment period on junior subordinated debentures \| quarter			20
Paycheck Protection Program
Debt Instrument [Line Items]
Long-term debt			$ 0	$ 27,144
Stated rate				0.35%
Federal Reserve Bank Discount Window Facility
Debt Instrument [Line Items]
Unused borrowing capacity, amount			510,724
Federal Reserve Bank Discount Window Facility \| Asset Pledged as Collateral
Debt Instrument [Line Items]
Loans pledged as collateral			$ 679,897
Fixed-to-Floating Rate Subordinated Notes due 2026
Debt Instrument [Line Items]
Subordinated notes issued		$ 50,000
Current Interest Rate		6.50%
Fixed-to-Floating Rate Subordinated Notes due 2026 \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Description of floating rate basis		three-month LIBOR
Interest rate		5.345%

Borrowings and Borrowing Capacity - Summary of Subordinated Notes (Details) - USD ($) $ in Thousands			12 Months Ended
	Aug. 26, 2021	Nov. 27, 2019	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Face Value			$ 109,500
Carrying Value			107,800	$ 106,957
Fixed-to-Floating Rate Subordinated Notes due 2029
Debt Instrument [Line Items]
Face Value		$ 39,500
Carrying Value			$ 38,857
Current Interest Rate		4.875%
Initial Issuance Costs		$ 1,218
Fixed-to-Floating Rate Subordinated Notes due 2029 \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate			3.33%
Fixed-to-Floating Rate Subordinated Notes due 2031
Debt Instrument [Line Items]
Face Value	$ 70,000
Carrying Value			$ 68,943
Current Interest Rate	3.50%
Initial Issuance Costs	$ 1,776
Fixed-to-Floating Rate Subordinated Notes due 2031 \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Interest rate			2.86%

Borrowings and Borrowing Capacity - Summary of Junior Subordinated Debentures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Face Value	$ 51,031
Carrying Value	41,158	$ 40,602
National Bancshares Capital Trust II
Debt Instrument [Line Items]
Face Value	15,464
Carrying Value	$ 13,489
Interest rate at December 31	7.77%
National Bancshares Capital Trust II \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate	3.00%
National Bancshares Capital Trust III
Debt Instrument [Line Items]
Face Value	$ 17,526
Carrying Value	$ 13,409
Interest rate at December 31	5.72%
National Bancshares Capital Trust III \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate	1.64%
ColoEast Capital Trust I
Debt Instrument [Line Items]
Face Value	$ 5,155
Carrying Value	$ 3,758
Interest rate at December 31	6.33%
ColoEast Capital Trust I \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate	1.60%
ColoEast Capital Trust II
Debt Instrument [Line Items]
Face Value	$ 6,700
Carrying Value	$ 4,869
Interest rate at December 31	6.52%
ColoEast Capital Trust II \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate	1.79%
Valley Bancorp Statutory Trust I
Debt Instrument [Line Items]
Face Value	$ 3,093
Carrying Value	$ 2,906
Interest rate at December 31	8.12%
Valley Bancorp Statutory Trust I \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate	3.40%
Valley Bancorp Statutory Trust II
Debt Instrument [Line Items]
Face Value	$ 3,093
Carrying Value	$ 2,727
Interest rate at December 31	7.49%
Valley Bancorp Statutory Trust II \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate	2.75%

Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Employer contribution towards compensation	100.00%
Compensation contributed percentage	4.00%
Compensation expenses	$ 3,569	$ 2,976	$ 2,519

Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income tax expense:
Current	$ 36,472	$ 37,812	$ 22,766
Deferred	(1,828)	(5,832)	(2,080)
Change in valuation allowance for deferred tax asset	49	0	0
Income tax expense	$ 34,693	$ 31,980	$ 20,686

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Summary of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Tax provision computed at federal statutory rate	$ 28,771	$ 30,440	$ 17,789
State taxes, net	4,849	3,335	2,919
Stock-based compensation	(369)	(1,778)	(109)
Non-deductible executive compensation	1,510	492	52
Bank-owned life insurance	(89)	(332)	(121)
Tax exempt interest	(100)	(201)	(250)
Change in valuation allowance for deferred tax asset	49	0	0
Other	72	24	406
Income tax expense	$ 34,693	$ 31,980	$ 20,686

Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets
Federal net operating loss carryforwards	$ 6,396	$ 7,231
State net operating loss carryforwards	1,534	1,458
Stock-based compensation	7,825	5,742
Unrealized loss on securities available for sale	2,163	0
Allowance for credit losses	11,825	11,341
Accrued liabilities	4,179	4,465
Lease liability	8,062	8,348
Other	3,405	707
Total deferred tax assets	45,389	39,292
Deferred tax liabilities
Goodwill and intangible assets	9,934	9,449
Fair value adjustment on junior subordinated debentures	2,237	2,324
Premises and equipment	6,339	4,786
Acquired loan basis	371	525
Installment gain on sale of subsidiary	0	626
Lease right-of-use asset	7,339	7,598
Unrealized gain on securities available for sale	0	1,023
Derivative financial instruments	0	1,475
Indemnification asset	935	1,123
Other	1,434	62
Total deferred tax liabilities	28,589	28,991
Net deferred tax asset before valuation allowance	16,800	10,301
Valuation allowance	(327)	(278)
Net deferred tax asset	$ 16,473	$ 10,023

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Income Taxes [Line Items]
Operating loss carryforwards, not subject to expiration	$ 15,855
Uncertain tax position	0	$ 0
EJ Acquisition
Income Taxes [Line Items]
Tax credit carryforwards, annual limitation on use amount	341
Tax credit carryforwards remaining	2,667
NBI Acquisition
Income Taxes [Line Items]
Tax credit carryforwards, annual limitation on use amount	2,040
Tax credit carryforwards remaining	11,936
HubTran, Inc.
Income Taxes [Line Items]
Tax credit carryforwards, annual limitation on use amount	1,594
Tax credit carryforwards remaining	15,855
Federal
Income Taxes [Line Items]
Operating loss carryforwards, net	30,458	34,433
State
Income Taxes [Line Items]
Operating loss carryforwards, net	26,695	$ 24,157
State \| ColoEast Acquisition
Income Taxes [Line Items]
Tax credit carryforwards, annual limitation on use amount	1,906
Tax credit carryforwards remaining	$ 2,445

Off-Balance Sheet Loan Commitments - Summary of Financial Instruments with Off-Balance Sheet Risk - (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Unused lines of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments, off balance sheet risk, fixed rate	$ 1,417	$ 26,029
Financial instruments, off balance sheet risk, variable rate	487,965	523,483
Financial instruments, off balance sheet risk	489,382	549,512
Standby letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments, off balance sheet risk, fixed rate	12,309	11,090
Financial instruments, off balance sheet risk, variable rate	4,897	5,409
Financial instruments, off balance sheet risk	17,206	16,499
Commitments to purchase loans
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments, off balance sheet risk, fixed rate	0	0
Financial instruments, off balance sheet risk, variable rate	53,572	108,423
Financial instruments, off balance sheet risk	53,572	108,423
Mortgage warehouse commitments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments, off balance sheet risk, fixed rate	0	0
Financial instruments, off balance sheet risk, variable rate	1,055,117	823,060
Financial instruments, off balance sheet risk	$ 1,055,117	$ 823,060

Off-Balance Sheet Loan Commitments - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Noninterest Expense
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Credit loss expense (benefit)	$ (476)	$ (922)	$ 2,448
Other Liabilities
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Credit loss, liability	$ 3,606	$ 4,082

Fair Value Disclosures - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Sep. 06, 2022	Jun. 30, 2022	Dec. 31, 2021
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Factored receivables \| Factored Receivable Disposal Group
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Future gross monthly revenue to be received (as a percent)			15.00%
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Indemnification asset, expected cash payments to be received	$ 4,101			$ 5,038
Discount rate	5.00%			5.00%
Revenue share asset, expected cash payments to be received	$ 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	10.00%
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	5.00%
Real estate selling and closing costs as a percentage of appraised value	5.00%
Minimum \| Measurement Input, Prepayment Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Prepayment rate	0.00%
Minimum \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Factored receivables \| Factored Receivable Disposal Group
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Future gross monthly revenue to be received (as a percent)		15.00%
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	8.00%
Real estate selling and closing costs as a percentage of appraised value	8.00%
Maximum \| Measurement Input, Prepayment Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Prepayment rate	11.00%
Maximum \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Factored receivables \| Factored Receivable Disposal Group
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Future gross monthly revenue to be received (as a percent)		20.00%

Fair Value Disclosures - Reconciliation of Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Indemnification Asset
Indemnification Asset [Roll Forward]
Decrease in fair value of financial instrument	$ 0	$ (35,633)	$ 0
Level 3 \| Indemnification Asset
Indemnification Asset [Roll Forward]
Beginning balance	4,786	36,225	0
Amount recognized in business combination	0	0	30,959
Change in fair value of financial instrument recognized in earnings	(890)	4,194	5,266
Decrease in fair value of financial instrument	0	(35,633)	0
Ending balance	3,896	4,786	$ 36,225
Level 3 \| Revenue Share Asset
Indemnification Asset [Roll Forward]
Beginning balance	0
Amount recognized in business combination	6,237
Change in fair value of financial instrument recognized in earnings	(62)
Decrease in fair value of financial instrument	(660)
Ending balance	5,515	0
Level 3 \| Return of Premium Liability
Indemnification Asset [Roll Forward]
Beginning balance	0
Amount recognized in business combination	708
Change in fair value of financial instrument recognized in earnings	(35)
Decrease in fair value of financial instrument	(98)
Ending balance	$ 575	$ 0

Fair Value Disclosures - Estimated Fair Value of Company's Financial Assets and Financial Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financial assets:
Cash and cash equivalents, carrying amount	$ 408,182	$ 383,178
FHLB and other restricted stock, carrying amount	6,252	10,146
Securities - held to maturity, fair value	5,476	5,447
Financial liabilities:
Customer repurchase agreements, carrying amount	340	2,103
Federal Home Loan Bank advances	30,000	180,000
Paycheck Protection Program Liquidity Facility, carrying amount	0	27,144
Subordinated notes, carrying amount	107,800	106,957
Junior subordinated debentures, carrying amount	41,158	40,602
Carrying Amount
Financial assets:
Cash and cash equivalents, carrying amount	408,182	383,178
Securities - held to maturity, carrying amount	4,077	4,947
Loans not previously presented, gross, carrying amount	4,088,411	4,834,426
FHLB and other restricted stock, carrying amount	6,252	10,146
Accrued interest receivable, carrying amount	21,977	15,319
Financial liabilities:
Deposits, carrying amount	4,171,336	4,646,679
Customer repurchase agreements, carrying amount	340	2,103
Federal Home Loan Bank advances	30,000	180,000
Paycheck Protection Program Liquidity Facility, carrying amount		27,144
Subordinated notes, carrying amount	107,800	106,957
Junior subordinated debentures, carrying amount	41,158	40,602
Accrued interest payable, carrying amount	2,830	1,951
Total Fair Value
Financial assets:
Cash and cash equivalents, fair value	408,182	383,178
Securities - held to maturity, fair value	5,476	5,447
Loans not previously presented, gross, fair value	3,993,430	4,828,020
Accrued interest receivable, fair value	21,977	15,319
Financial liabilities:
Deposits, fair value	4,159,695	4,646,552
Customer repurchase agreements, fair value	340	2,103
Federal Home Loan Bank advances, fair value	30,000	180,000
Paycheck Protection Program Liquidity Facility, fair value		27,144
Subordinated notes, fair value	104,400	110,045
Junior subordinated debentures, fair value	42,721	41,286
Accrued interest payable, fair value	2,830	1,951
Level 1
Financial assets:
Cash and cash equivalents, fair value	408,182	383,178
Securities - held to maturity, fair value	0	0
Loans not previously presented, gross, fair value	187,729	142,962
Accrued interest receivable, fair value	21,977	15,319
Financial liabilities:
Deposits, fair value	0	0
Customer repurchase agreements, fair value	0	0
Federal Home Loan Bank advances, fair value	0	0
Paycheck Protection Program Liquidity Facility, fair value		0
Subordinated notes, fair value	0	0
Junior subordinated debentures, fair value	0	0
Accrued interest payable, fair value	2,830	1,951
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	4,159,695	4,646,552
Customer repurchase agreements, fair value	340	2,103
Federal Home Loan Bank advances, fair value	30,000	180,000
Paycheck Protection Program Liquidity Facility, fair value		27,144
Subordinated notes, fair value	104,400	110,045
Junior subordinated debentures, fair value	42,721	41,286
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	5,476	5,447
Loans not previously presented, gross, fair value	3,805,701	4,685,058
Accrued interest receivable, fair value	0	0
Financial liabilities:
Deposits, fair value	0	0
Customer repurchase agreements, fair value	0	0
Federal Home Loan Bank advances, fair value	0	0
Paycheck Protection Program Liquidity Facility, fair value		0
Subordinated notes, fair value	0	0
Junior subordinated debentures, fair value	0	0
Accrued interest payable, fair value	$ 0	$ 0

Related-Party Transactions - Schedule of Loans to Principal Officers, Directors, and their Affiliates (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Related Party Transactions [Roll Forward]
Beginning balance	$ 0	$ 3,892
New loans and advances	0	0
Repayments and sales	0	(3,892)
Effect of changes in composition of related parties	0	0
Ending balance	$ 0	$ 0

Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Related Party Transactions [Abstract]
Amount of deposits held	$ 25,364	$ 34,111

Regulatory Matters - Schedule of Actual Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Triumph Financial, Inc.
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total capital (to risk weighted assets), actual amount	$ 829,928	$ 769,475
Total capital (to risk weighted assets), actual ratio	0.177	0.141
Total capital (to risk weighted assets), minimum for capital adequacy purposes amount	$ 375,109	$ 436,582
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	$ 684,381	$ 628,094
Tier 1 capital (to risk weighted assets), actual ratio	0.146	0.115
Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes amount	$ 281,252	$ 327,701
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	$ 598,223	$ 542,492
Common equity Tier 1 capital (to risk weighted assets), actual ratio	0.127	0.099
Common equity Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes amount	$ 211,969	$ 246,587
Common equity Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes ratio	0.045	0.045
Tier 1 capital (to average assets), actual amount	$ 684,381	$ 628,094
Tier 1 capital (to average assets) , actual ratio	0.130	0.111
Tier 1 capital (to average assets), minimum for capital adequacy purposes amount	$ 210,579	$ 226,340
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	$ 732,785	$ 698,286
Total capital (to risk weighted assets), actual ratio	0.158	0.129
Total capital (to risk weighted assets), minimum for capital adequacy purposes amount	$ 371,030	$ 433,046
Total capital (to risk weighted assets), minimum for capital adequacy purposes ratio	0.080	0.080
Total capital (to risk weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 463,788	$ 541,307
Total capital (to risk weighted assets), ratio to be well capitalized under prompt corrective action provisions	0.100	0.100
Tier 1 capital (to risk weighted assets), actual amount	$ 697,022	$ 665,336
Tier 1 capital (to risk weighted assets), actual ratio	0.150	0.123
Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes amount	$ 278,809	$ 324,554
Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes ratio	0.060	0.060
Tier 1 capital (to risk weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 371,745	$ 432,739
Tier 1 capital (to risk weighted assets), ratio to be well capitalized under prompt corrective action provisions	0.080	0.080
Common equity Tier 1 capital (to risk weighted assets), actual amount	$ 697,022	$ 665,336
Common equity Tier 1 capital (to risk weighted assets), actual ratio	0.150	0.123
Common equity Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes amount	$ 209,107	$ 243,416
Common equity Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes ratio	0.045	0.045
Common equity Tier 1 capital (to risk weighted assets), amount to be well capitalized under prompt corrective action provisions	$ 302,043	$ 351,600
Common equity Tier 1 capital (to risk weighted assets), ratio to be well capitalized under prompt corrective action provisions	0.065	0.065
Tier 1 capital (to average assets), actual amount	$ 697,022	$ 665,336
Tier 1 capital (to average assets) , actual ratio	0.132	0.118
Tier 1 capital (to average assets), minimum for capital adequacy purposes amount	$ 211,219	$ 225,538
Tier 1 capital (to average assets), minimum for capital adequacy purposes ratio	0.040	0.040
Tier 1 capital (to average assets), amount to be well capitalized under prompt corrective action provisions	$ 264,023	$ 281,922
Tier 1 capital (to average assets), ratio to be well capitalized under prompt corrective action provisions	0.050	0.050

Stockholders' Equity - Summary of Preferred Stock (Details) - Series C Preferred Stock - USD ($)		12 Months Ended
	Jun. 19, 2020	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Shares authorized (in shares)		51,750	51,750
Shares issued (in shares)	45,000	45,000	45,000
Shares outstanding (in shares)		45,000	45,000
Par value per share (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Liquidation preference per share (in dollars per share)	$ 1,000	$ 1,000	$ 1,000
Liquidation preference amount		$ 45,000,000	$ 45,000,000
Dividend rate	7.125%	7.125%	7.125%

Stockholders' Equity - Additional Information (Details)		1 Months Ended	12 Months Ended
Stockholders' Equity - Additional Information (Details)	Jun. 19, 2020 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Nov. 07, 2022 USD ($)	May 23, 2022 USD ($)	Feb. 07, 2022 USD ($)	Oct. 16, 2019 USD ($)
Class of Stock [Line Items]
Issuance of preferred stock, net of issuance costs			$ 0	$ 0	$ 42,364,000
Amount authorized under stock repurchase program						$ 100,000,000
Payments for repurchase of common stock			$ 76,714,000	$ 1,241,000	$ 35,772,000
Series C Preferred Stock
Class of Stock [Line Items]
Preferred stock issued (in shares) \| shares	45,000	45,000	45,000	45,000
Dividend rate	7.125%		7.125%	7.125%
Par value per share (in dollars per share) \| $ / shares	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Liquidation preference per share (in dollars per share) \| $ / shares	$ 1,000	$ 1,000	$ 1,000	$ 1,000
Depositary shares (in shares) \| shares	1,800,000
Depositary shares, ownership interest	0.025
Proceeds from issuance of preferred stock, gross	$ 45,000,000
Issuance of preferred stock, net of issuance costs	$ 42,364,000
Stock Repurchase Program
Class of Stock [Line Items]
Amount authorized under stock repurchase program							$ 75,000,000	$ 50,000,000	$ 50,000,000
Shares repurchased into treasury stock (in shares) \| shares			709,795	0	871,319
Average price of shares repurchased into treasury stock (in dollars per share) \| $ / shares			$ 70.41		$ 40.81
Payments for repurchase of common stock			$ 50,000,000		$ 35,600,000
Dutch Auction Tender Offer
Class of Stock [Line Items]
Shares repurchased into treasury stock (in shares) \| shares		408,615
Average price of shares repurchased into treasury stock (in dollars per share) \| $ / shares		$ 58.00
Payments for repurchase of common stock		$ 24,772,000
Tender offer fees and expenses		$ 1,072,000

Stockholders' Equity - Summary of Common Stock (Details) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Equity [Abstract]
Shares authorized (in shares)	50,000,000	50,000,000
Shares issues (in shares)	28,321,716	28,261,680
Treasury shares (in shares)	(4,268,131)	(3,102,801)
Shares outstanding (in shares)	24,053,585	25,158,879
Par value per share (in dollars per share)	$ 0.01	$ 0.01

Stock Based Compensation - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 30, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation		$ 21,176	$ 20,315	$ 4,618
Issuance of common stock pursuant to the employee stock purchase plan (in shares)		24,516	9,101
Restricted Stock Awards (RSAs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting of performance stock units (in shares)		126,203
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting of performance stock units (in shares)		0
Market Based Performance Stock Units (Market Based PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting of performance stock units (in shares)		20,996
Performance Based Performance Stock Units (Performance Based PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting of performance stock units (in shares)		0
2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares approved for issuance (in shares)		2,450,000
2014 Omnibus Incentive Plan \| Restricted Stock Awards (RSAs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation, fair value of shares vested		$ 8,918	$ 6,604	1,988
Total unrecognized compensation cost		$ 5,580
Weighted-average period to recognize cost		2 years 3 months 7 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]
Weighted-average period to recognize cost		3 years
Total unrecognized compensation cost, options		$ 6,355
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 \| Market Based Performance Stock Units (Market Based PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation, fair value of shares vested		$ 1,458	0	$ 0
Total unrecognized compensation cost		$ 2,661
Weighted-average period to recognize cost		2 years
2014 Omnibus Incentive Plan \| Market Based Performance Stock Units (Market Based PSUs) \| 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		0.00%
2014 Omnibus Incentive Plan \| Market Based Performance Stock Units (Market Based PSUs) \| 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		175.00%
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		$ 6,966	$ 7,405
Stock based compensation, award vesting period		30 days
Award performance period before vesting period		3 years
2014 Omnibus Incentive Plan \| Performance Based Performance Stock Units (Performance Based PSUs) \| Forecast
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation, award vesting percentage	142.00%
Vesting of performance stock units (in shares)	363,150
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		0.00%
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		200.00%
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
Weighted-average period to recognize cost		3 years 21 days
Total unrecognized compensation cost, options		$ 790
Employees stock options contractual terms		10 years
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					85.00%
Purchase offering period					6 months

Stock Based Compensation - Summary of Changes in Company's Nonvested Awards (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Restricted Stock Awards (RSAs)
Shares
Beginning balance (in shares)	363,404
Granted (in shares)	12,471
Vested (in shares)	(126,203)
Forfeited (in shares)	(19,186)
Ending balance (in shares)	230,486
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 67.56
Granted (in dollars per share) \| $ / shares	74.42
Vested (in dollars per share) \| $ / shares	61.74
Forfeited (in dollars per share) \| $ / shares	76.93
Ending balance (in dollars per share) \| $ / shares	$ 70.34
Restricted stock units
Shares
Beginning balance (in shares)	122,470
Granted (in shares)	91,849
Vested (in shares)	0
Forfeited (in shares)	(3,019)
Ending balance (in shares)	211,300
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 52.07
Granted (in dollars per share) \| $ / shares	69.44
Vested (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	64.00
Ending balance (in dollars per share) \| $ / shares	$ 59.45
Market Based Performance Stock Units (Market Based PSUs)
Shares
Beginning balance (in shares)	94,984
Granted (in shares)	33,276
Incremental shares earned (in shares)	8,997
Vested (in shares)	(20,996)
Forfeited (in shares)	(3,775)
Ending balance (in shares)	112,486
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 43.68
Granted (in dollars per share) \| $ / shares	84.22
Vested (in dollars per share) \| $ / shares	33.91
Forfeited (in dollars per share) \| $ / shares	77.75
Ending balance (in dollars per share) \| $ / shares	$ 55.57
Performance Based Performance Stock Units (Performance Based PSUs)
Shares
Beginning balance (in shares)	259,383
Granted (in shares)	3,000
Vested (in shares)	0
Forfeited (in shares)	(6,645)
Ending balance (in shares)	255,738
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 39.32
Granted (in dollars per share) \| $ / shares	69.44
Vested (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	43.03
Ending balance (in dollars per share) \| $ / shares	$ 39.57

Stock Based Compensation - Schedule of Market Based Performance Stock Units, Valuation Assumptions (Details) - Market Based Performance Stock Units (Market Based PSUs) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	3 years	3 years	3 years
Stock price (in dollars per share)	$ 69.44	$ 88.63	$ 26.25
Stock price volatility	55.17%	51.71%	43.02%
Risk-free rate	2.84%	0.35%	0.25%

Stock Based Compensation - Summary of Changes in Company's Stock Options (Details) - Stock options $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares
Shares
Beginning balance (in shares) \| shares	166,755
Granted (in shares) \| shares	35,939
Exercised (in shares) \| shares	(3,797)
Forfeited (in shares) \| shares	(3,499)
Expired (in shares) \| shares	0
Ending balance (in shares) \| shares	195,398
Fully vested and shares expected to vest (in shares) \| shares	195,398
Shares exercisable (in shares) \| shares	128,958
Weighted Average Exercise Price
Beginning balance (in dollars per shares) \| $ / shares	$ 33.34
Granted (in dollars per shares) \| $ / shares	69.44
Exercised (in dollars per shares) \| $ / shares	26.12
Forfeited (in dollars per shares) \| $ / shares	69.44
Expired (in dollars per shares) \| $ / shares	0
Ending balance (in dollars per shares) \| $ / shares	39.48
Fully vested shares and shares expected to vest (in dollars per shares) \| $ / shares	39.48
Shares exercisable (in dollars per shares) \| $ / shares	$ 29.10
Outstanding, weighed average remaining contractual term	6 years 1 month 6 days
Fully vested shares and shares expected to vest, weighed average remaining contractual term	6 years 1 month 6 days
Shares exercisable, weighed average remaining contractual term	4 years 10 months 24 days
Outstanding, aggregate intrinsic value \| $	$ 3,176
Fully vested shares and shares expected to vest, aggregate intrinsic value \| $	3,176
Shares exercisable, aggregate intrinsic value \| $	$ 2,717

Stock Based Compensation - Schedule of Information Related to Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash received from option exercises, net	$ 74		$ 227
Cash received from option exercises, net		$ 577
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value of options exercised	280	5,304	940
Cash received from option exercises, net	(74)		(227)
Cash received from option exercises, net		577
Tax benefit realized from option exercises	$ 59	$ 1,114	$ 197
Weighted average fair value of options granted (per share) (in dollars per share)	$ 32.15	$ 35.37	$ 8.85
Fair value of vested awards	$ 423	$ 381	$ 471

Stock Based Compensation - Fair Value of Stock Options Granted Using Weighted-Average Assumptions (Details) - Stock options	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.77%	1.16%	0.46%
Expected term	6 years 3 months	6 years 3 months	6 years 3 months
Expected stock price volatility	43.33%	39.26%	33.83%
Dividend yield	0.00%	0.00%	0.00%

Parent Company Only Condensed Financial Information - Condensed Parent Company Only Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 408,182	$ 383,178
Securities - held to maturity	4,077	4,947
Other assets	141,484	98,449
Total assets	5,333,783	5,956,250
LIABILITIES AND EQUITY
Subordinated notes	107,800	106,957
Junior subordinated debentures	41,158	40,602
Total liabilities	4,444,812	5,097,386
Stockholders' equity	888,971	858,864	$ 726,781	$ 636,590
Total liabilities and stockholders' equity	5,333,783	5,956,250
Parent Company
ASSETS
Cash and cash equivalents	92,338	64,530
Securities - held to maturity	4,077	4,947
Investment in bank subsidiary	943,084	938,255
Investment in non-bank subsidiaries	194	894
Other assets	4,568	479
Total assets	1,044,261	1,009,105
LIABILITIES AND EQUITY
Subordinated notes	107,800	106,957
Junior subordinated debentures	41,158	40,602
Intercompany payables	365	128
Accrued expenses and other liabilities	5,967	2,554
Total liabilities	155,290	150,241
Stockholders' equity	888,971	858,864
Total liabilities and stockholders' equity	$ 1,044,261	$ 1,009,105

Parent Company Only Condensed Financial Information - Condensed Parent Company Only Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Condensed Income Statements, Captions [Line Items]
Interest income	$ 419,239	$ 387,555	$ 322,115
Interest expense	(18,747)	(18,425)	(37,387)
Credit loss (expense) benefit	(6,925)	8,830	(38,329)
Other income			50,627
Salaries and employee benefits expense	(201,487)	(173,951)	(126,975)
Other expense	(35,401)	(31,461)	(26,263)
Income tax (expense) benefit	(34,693)	(31,980)	(20,686)
Net income	102,311	112,974	64,024
Dividends on preferred stock	(3,206)	(3,206)	(1,701)
Net income available to common stockholders	99,105	109,768	62,323
Comprehensive income attributable to Parent	87,377	115,189	68,737
Parent Company
Condensed Income Statements, Captions [Line Items]
Interest income	174	100	270
Interest expense	(7,874)	(8,220)	(7,477)
Credit loss (expense) benefit	(362)	(56)	(1,899)
Other income	80	53	(20)
Salaries and employee benefits expense	(729)	(618)	(606)
Other expense	(2,701)	(2,379)	(2,376)
Income (loss) before income tax and income from subsidiaries	(11,412)	(11,120)	(12,108)
Income tax (expense) benefit	2,150	2,202	2,631
Dividends from subsidiaries and equity in undistributed subsidiary income	111,573	121,892	73,501
Net income	102,311	112,974	64,024
Dividends on preferred stock	(3,206)	(3,206)	(1,701)
Net income available to common stockholders	99,105	109,768	62,323
Comprehensive income attributable to Parent	$ 87,377	$ 115,189	$ 68,737

Parent Company Only Condensed Financial Information - Condensed Parent Company Only Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 102,311	$ 112,974	$ 64,024
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net accretion of securities	(882)	(992)	(129)
Amortization of junior subordinated debentures	556	530	506
Amortization of subordinated notes issuance costs	843	1,224	182
Stock based compensation	21,176	20,315	4,618
Change in other assets	(35,176)	(8,684)	12,215
Net cash provided by (used in) operating activities	74,487	136,959	97,327
Cash flows from investing activities:
Proceeds from maturities, calls, and pay downs of securities held to maturity	679	1,003	693
Net change in loans	581,599	153,946	(632,517)
Net cash provided by (used in) investing activities	672,382	77,656	(774,737)
Cash flows from financing activities:
Issuance of preferred stock, net of issuance costs	0	0	42,364
Preferred dividends	(3,206)	(3,206)	(1,701)
Purchase of treasury stock	(76,714)	(1,241)	(35,772)
Stock option exercises	(74)		(227)
Stock option exercises		577
Proceeds from employee stock purchase plan common stock issuance	1,548	449	0
Net cash provided by (used in) financing activities	(721,865)	(145,830)	793,923
Net increase (decrease) in cash and cash equivalents	25,004	68,785	116,513
Cash and cash equivalents at end of period	408,182	383,178	314,393
Cash and cash equivalents at beginning of period	383,178	314,393	197,880
Parent Company
Cash flows from operating activities:
Net income	102,311	112,974	64,024
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed subsidiary income	1,427	(121,892)	(58,501)
Net accretion of securities	(171)	(87)	(221)
Amortization of junior subordinated debentures	556	530	506
Amortization of subordinated notes issuance costs	843	1,224	182
Stock based compensation	686	420	315
Credit loss expense (benefit)	362	56	1,900
Change in other assets	(4,089)	387	337
Change in accrued expenses and other liabilities	3,650	546	505
Net cash provided by (used in) operating activities	105,575	(5,842)	9,047
Cash flows from investing activities:
Investment in subsidiaries	0	3,383	146
Proceeds from maturities, calls, and pay downs of securities held to maturity	679	1,003	693
Net change in loans	0	0	719
Net cash provided by (used in) investing activities	679	4,386	1,558
Cash flows from financing activities:
Proceeds from issuance of subordinated notes, net	0	68,224	0
Repayment of subordinated notes	0	(50,000)	0
Issuance of preferred stock, net of issuance costs	0	0	42,364
Preferred dividends	(3,206)	(3,206)	(1,701)
Purchase of treasury stock	(76,714)	(1,241)	(35,772)
Stock option exercises	(74)		(227)
Stock option exercises		577
Proceeds from employee stock purchase plan common stock issuance	1,548	449	0
Net cash provided by (used in) financing activities	(78,446)	14,803	4,664
Net increase (decrease) in cash and cash equivalents	27,808	13,347	15,269
Cash and cash equivalents at end of period	92,338	64,530	51,183
Cash and cash equivalents at beginning of period	$ 64,530	$ 51,183	$ 35,914

Earnings Per Share - Factors Used in Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Basic
Net income to common stockholders	$ 99,105	$ 109,768	$ 62,323
Weighted average common shares outstanding (in shares)	24,393,954	24,736,713	24,387,932
Basic earnings per common share (in dollars per share)	$ 4.06	$ 4.44	$ 2.56
Diluted
Net income to common stockholders	$ 99,105	$ 109,768	$ 62,323
Weighted average common shares outstanding (in shares)	24,393,954	24,736,713	24,387,932
Dilutive effects of:
Average shares and dilutive potential common shares (in shares)	25,023,568	25,252,052	24,615,816
Diluted earnings per common share (in dollars per share)	$ 3.96	$ 4.35	$ 2.53
Stock options
Dilutive effects of:
Stock based compensation (in shares)	90,841	130,198	64,104
Restricted stock awards
Dilutive effects of:
Stock based compensation (in shares)	148,630	170,276	86,498
Restricted stock units
Dilutive effects of:
Stock based compensation (in shares)	98,139	76,049	25,978
Performance stock units - market based
Dilutive effects of:
Stock based compensation (in shares)	122,123	136,199	51,304
Performance stock units - performance based
Dilutive effects of:
Stock based compensation (in shares)	167,187	0	0
Employee stock purchase plan
Dilutive effects of:
Stock based compensation (in shares)	2,694	2,617	0

Earnings Per Share - Schedule of Shares not Considered in Computing Diluted Earnings per Common Share (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	49,379	16,939	64,947
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	6,348	8,463	0
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	11,250	15,000	0
Performance stock units - market based
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	45,296	0	0
Performance stock units - performance based
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	0	259,383	256,625
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	0	0	0

Business Segment Information - Banking Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total interest income	$ 419,239	$ 387,555	$ 322,115
Intersegment interest allocations	0	0	0
Total interest expense	18,747	18,425	37,387
Net interest income (expense)	400,492	369,130	284,728
Credit loss expense (benefit)	6,925	(8,830)	38,329
Net interest income (expense) after credit loss expense	393,567	377,960	246,399
Gain on sale of subsidiary or division	0	0	9,758
Noninterest income	84,068	54,501	60,385
Other noninterest income			50,627
Noninterest expense	340,631	287,507	222,074
Operating income (loss)	137,004	144,954	84,710
Total assets	5,333,783	5,956,250
Gross loans	4,120,291	4,867,572
Operating Segments \| Banking
Segment Reporting Information [Line Items]
Total interest income	195,871	189,621	207,978
Total interest expense	10,873	10,205	29,910
Net interest income (expense)	194,565	189,805	190,883
Credit loss expense (benefit)	2,753	(19,016)	20,217
Net interest income (expense) after credit loss expense	191,812	208,821	170,666
Gain on sale of subsidiary or division			9,758
Noninterest income	41,096	33,447
Other noninterest income			29,379
Noninterest expense	186,770	169,114	151,115
Operating income (loss)	46,138	73,154	58,688
Total assets	4,931,666	5,568,826
Gross loans	3,576,216	4,444,136
Operating Segments \| Factoring
Segment Reporting Information [Line Items]
Total interest income	207,114	185,741	109,391
Total interest expense	0	0	0
Net interest income (expense)	197,670	175,863	97,020
Credit loss expense (benefit)	2,895	9,691	16,042
Net interest income (expense) after credit loss expense	194,775	166,172	80,978
Gain on sale of subsidiary or division			0
Noninterest income	22,272	13,005
Other noninterest income			21,010
Noninterest expense	87,197	74,768	54,011
Operating income (loss)	129,850	104,409	47,977
Total assets	1,250,476	1,679,495
Gross loans	1,151,727	1,546,361
Operating Segments \| Payments
Segment Reporting Information [Line Items]
Total interest income	16,079	12,093	4,474
Total interest expense	0	0	0
Net interest income (expense)	15,956	11,582	4,030
Credit loss expense (benefit)	218	438	172
Net interest income (expense) after credit loss expense	15,738	11,144	3,858
Gain on sale of subsidiary or division			0
Noninterest income	20,620	7,451
Other noninterest income			125
Noninterest expense	63,231	39,769	12,880
Operating income (loss)	(26,873)	(21,174)	(8,897)
Total assets	371,948	293,212
Gross loans	85,722	153,176
Operating Segments \| Corporate
Segment Reporting Information [Line Items]
Total interest income	175	100	272
Total interest expense	7,874	8,220	7,477
Net interest income (expense)	(7,699)	(8,120)	(7,205)
Credit loss expense (benefit)	1,059	57	1,898
Net interest income (expense) after credit loss expense	(8,758)	(8,177)	(9,103)
Gain on sale of subsidiary or division			0
Noninterest income	80	598
Other noninterest income			113
Noninterest expense	3,433	3,856	4,068
Operating income (loss)	(12,111)	(11,435)	(13,058)
Total assets	1,040,175	1,009,998
Gross loans	0	700
Eliminations
Segment Reporting Information [Line Items]
Total assets	(2,260,482)	(2,595,281)
Gross loans	(693,374)	(1,276,801)
Eliminations \| Banking
Segment Reporting Information [Line Items]
Intersegment interest allocations	9,567	10,389	12,815
Eliminations \| Factoring
Segment Reporting Information [Line Items]
Intersegment interest allocations	(9,444)	(9,878)	(12,371)
Eliminations \| Payments
Segment Reporting Information [Line Items]
Intersegment interest allocations	(123)	(511)	(444)
Eliminations \| Corporate
Segment Reporting Information [Line Items]
Intersegment interest allocations	$ 0	$ 0	$ 0

Subsequent Events (Details) - USD ($)	Feb. 01, 2023	Nov. 07, 2022
Subsequent Event [Line Items]
Amount authorized under stock repurchase program		$ 100,000,000
Subsequent Event \| ASR Agreement
Subsequent Event [Line Items]
Amount authorized under stock repurchase program	$ 70,000,000
Shares repurchased into treasury stock (in shares)	961,373
Percent of authorized shares repurchased	80.00%

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]

- Definition

Indicates amendment to accounting standards.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 40
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets measured at fair value on a recurring basis
Securities available for sale	$ 254,504	$ 182,426
Equity securities with readily determinable fair values	5,191	5,504
Indemnification asset	3,896	4,786
Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	254,504	182,426
Loans held for sale	5,641	7,330
Indemnification asset	3,896	4,786
Revenue share asset	5,515
Liabilities measured at fair value on a recurring basis
Return of premium liability	575
Fair Value, Measurements, Recurring \| Interest rate swaps
Assets measured at fair value on a recurring basis
Derivative financial instruments (cash flow hedges)		6,164
Mutual fund
Assets measured at fair value on a recurring basis
Equity securities with readily determinable fair values	5,191	5,504
Mutual fund \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Equity securities with readily determinable fair values	5,191	5,504
Mortgage-backed securities, residential
Assets measured at fair value on a recurring basis
Securities available for sale	50,633	37,449
Mortgage-backed securities, residential \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	50,633	37,449
Asset-backed securities
Assets measured at fair value on a recurring basis
Securities available for sale	6,331	6,764
Asset-backed securities \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	6,331	6,764
State and municipal
Assets measured at fair value on a recurring basis
Securities available for sale	13,438	26,825
State and municipal \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	13,438	26,825
CLO Securities
Assets measured at fair value on a recurring basis
Securities available for sale	181,011	106,634
CLO Securities \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	181,011	106,634
Corporate bonds
Assets measured at fair value on a recurring basis
Securities available for sale	1,263	2,056
Corporate bonds \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	1,263	2,056
SBA pooled securities
Assets measured at fair value on a recurring basis
Securities available for sale	1,828	2,698
SBA pooled securities \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	1,828	2,698
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
Liabilities measured at fair value on a recurring basis
Return of premium liability	0
Level 1 \| Fair Value, Measurements, Recurring \| Interest rate swaps
Assets measured at fair value on a recurring basis
Derivative financial instruments (cash flow hedges)		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	5,191	5,504
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	254,504	182,426
Loans held for sale	5,641	7,330
Indemnification asset	0	0
Revenue share asset	0
Liabilities measured at fair value on a recurring basis
Return of premium liability	0
Level 2 \| Fair Value, Measurements, Recurring \| Interest rate swaps
Assets measured at fair value on a recurring basis
Derivative financial instruments (cash flow hedges)		6,164
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	50,633	37,449
Level 2 \| Asset-backed securities \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	6,331	6,764
Level 2 \| State and municipal \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	13,438	26,825
Level 2 \| CLO Securities \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	181,011	106,634
Level 2 \| Corporate bonds \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	1,263	2,056
Level 2 \| SBA pooled securities \| Fair Value, Measurements, Recurring
Assets measured at fair value on a recurring basis
Securities available for sale	1,828	2,698
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	3,896	4,786
Revenue share asset	5,515
Liabilities measured at fair value on a recurring basis
Return of premium liability	575
Level 3 \| Fair Value, Measurements, Recurring \| Interest rate swaps
Assets measured at fair value on a recurring basis
Derivative financial instruments (cash flow hedges)		0
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