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Regulatory Matters
 9 Months Ended
Sep. 30, 2020
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Regulatory Matters Regulatory Matters The Company (on a consolidated basis) and TBK Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s or TBK Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and TBK Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
Quantitative measures established by regulation to ensure capital adequacy require the Company and TBK Bank to maintain minimum amounts and ratios (set forth in the table below) of total, common equity Tier 1, and Tier 1 capital to risk weighted assets, and of Tier 1 capital to average assets. Management believes, as of September 30, 2020 and December 31, 2019, the Company and TBK Bank meet all capital adequacy requirements to which they are subject.
As of September 30, 2020 and December 31, 2019, TBK Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” TBK Bank must maintain minimum total risk based, common equity Tier 1 risk based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since September 30, 2020 that management believes have changed TBK Bank’s category.
The actual capital amounts and ratios for the Company and TBK Bank are presented in the following table.
(Dollars in thousands)ActualMinimum for Capital
Adequacy Purposes		To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
September 30, 2020AmountRatioAmountRatioAmountRatio
Total capital (to risk weighted assets)
Triumph Bancorp, Inc.$689,050 12.9%$427,318 8.0% N/A N/A
TBK Bank, SSB$624,406 11.9%$419,769 8.0%$524,711 10.0%
Tier 1 capital (to risk weighted assets)
Triumph Bancorp, Inc.$549,445 10.3%$320,065 6.0% N/A N/A
TBK Bank, SSB$573,637 10.9%$315,763 6.0%$421,018 8.0%
Common equity Tier 1 capital (to risk weighted assets)
Triumph Bancorp, Inc.$464,501 8.7%$240,259 4.5% N/A N/A
TBK Bank, SSB$573,637 10.9%$236,823 4.5%$342,077 6.5%
Tier 1 capital (to average assets)
Triumph Bancorp, Inc.$549,445 10.8%$203,498 4.0% N/A N/A
TBK Bank, SSB$573,637 11.3%$203,057 4.0%$253,822 5.0%
As of December 31, 2019
Total capital (to risk weighted assets)
Triumph Bancorp, Inc.$604,832 12.8%$378,020 8.0%N/AN/A
TBK Bank, SSB$555,213 12.0%$370,142 8.0%$462,678 10.0%
Tier 1 capital (to risk weighted assets)
Triumph Bancorp, Inc.$487,775 10.3%$284,141 6.0%N/AN/A
TBK Bank, SSB$525,490 11.4%$276,574 6.0%$368,765 8.0%
Common equity Tier 1 capital (to risk weighted assets)
Triumph Bancorp, Inc.$448,209 9.5%$212,310 4.5%N/AN/A
TBK Bank, SSB$525,490 11.4%$207,430 4.5%$299,621 6.5%
Tier 1 capital (to average assets)
Triumph Bancorp, Inc.$487,775 10.0%$195,110 4.0%N/AN/A
TBK Bank, SSB$525,490 10.9%$192,840 4.0%$241,050 5.0%
As permitted by the interim final rule issued on March 27, 2020 by the federal banking regulatory agencies, the Company has 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”) will be delayed for two years. After two years, the cumulative amount of the transition adjustments will become fixed and will be phased out of the regulatory capital calculations evenly over a three year period, with 75% recognized in year three, 50% recognized in year four, and 25% recognized in year five. After five years, the temporary regulatory capital benefits will be fully reversed.
Dividends paid by TBK Bank are limited to, without prior regulatory approval, current year earnings and earnings less dividends paid during the preceding two years.
The capital conservation buffer set forth by the Basel III regulatory capital framework was 2.5% at September 30, 2020 and December 31, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and requires increased capital levels for the purpose of capital distributions and other payments. Failure to meet the full amount of the buffer will result in restrictions on the Company’s ability to make capital distributions, including dividend payments and stock repurchases, and to pay discretionary bonuses to executive officers. At September 30, 2020 and December 31, 2019, the Company’s and TBK Bank’s risk based capital exceeded the required capital conservation buffer.