April 16, Dear Fellow Shareholders,

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1 2017 ANNUAL REPORT

2 April 16, 2018 Dear Fellow Shareholders, In 2017, we were very successful in growing our company with an almost 18% increase in loans, and an almost 43% increase in deposits. Our consolidated net income was $4.7 million, a decrease from last year of 14.6%. Like many other banks, we will take advantage of the new lower tax rates in 2018, but in 2017, we were required to write down deferred tax assets. This resulted in a net decrease in earnings of $615,502 for We expect to recover this with lower income tax expense within the first six months of If we had not taken this tax strategy, our income would have been down by only 3.5% compared to the end of This 3.5% decrease in year over year earnings was a result of three things: 1. The expansion of our team, particularly in our mortgage division, which is expected to pay off in early Increased loan quality expense still very good compared to our peers. 3. Competition in our market made it difficult to increase rates on loans, despite higher cost of funds. Also, I would like to mention a peculiar thing about our business. Unfortunately, whenever we increase loans, we also increase our provision expense for bad debts. Thus, we roughly breakeven on the added loans in the first year with all the income benefit from these loans occurring in the second year. I wanted to mention this as, in most other industries, if revenue increases, it leads to immediate increases in income. From , we continually increased our net income, so we believe the slight drop in earnings in 2017 is not a trend. We expect to have record earnings in 2018, due to the growing Mortgage team, the wonderful addition of our new Medical and Professional Banking Team, and our entry into the Nashville market that launched in March We continue to improve and expand our team and are very excited about the future. Additionally, in 2017, we proudly launched the Triumph Community Development Foundation. Our company, employees, and directors are contributing to this foundation to make donations to in support of local non-profit organizations. The Foundation s emphasis is on helping the less-fortunate in our community and improving education and economic development in our city. In addition, our team has served over 541 hours for our community partners. We believe in giving back to our city. We hope you will attend our Annual Meeting on Thursday, April 26th at 6pm at the Triumph Commercial and Mortgage Lending Center at 5904 Ridgeway Center Parkway. We look forward to seeing you then. Sincerely, Triumph Bancshares, Inc. Hilliard R. Crews CHAIRMAN OF THE BOARD 2

3 $800,000,000 $500,000,000 $ 494,229,409 $700,000,000 $600,000,000 $595,808,688 $ 722,416,222 $400,000,000 $413,527,340 $432,329,006 $500,000,000 $526,515,804 $300,000,000 TOTAL ASSETS $400,000,000 $300,000,000 $200,000,000 $100,000,000 NET LOANS $200,000,000 $100,000,000 TOTAL DEPOSITS & BORROWED FUNDS $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $39,000,000 $429,955,691 $79,448,900 $454,365,207 $7,000,000 $648,728,598 SHAREHOLDERS EQUITY $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $53,320,124 $58,348,144 $62,546,223 NON INTEREST INCOME $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $4,381,571 $6,021,352 $4,234,384 NET INCOME AFTER TAXES $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $5,000,307 $5,531,648 $4,724,906 3

4 Consolidated Balance Sheet DECEMBER 31, 2017, 2016, and 2015 ASSETS Cash and Cash Equivalents 33,871,612 23,925,634 9,526,985 Securities Available for Sale 133,206,448 99,700,690 79,925,254 Loans Held for Sale 43,552,043 23,781,884 10,569,785 Loans, Net of Deferred Fees and Allowance for Loan Losses 494,229, ,329, ,527,340 Premises and Equipment, Net of Accumulated Depreciation 3,686,765 4,062,687 3,581,952 Other Assets 13,869,945 12,008,787 9,384,488 Total Assets 722,416, ,808, ,515,804 LIABILITIES AND STOCKHOLDERS EQUITY Deposits 648,728, ,365, ,955,691 Other Borrowings 8,186,405 80,390,126 41,040,067 Other Liabilities 2,954,996 2,705,211 2,199,922 Total Liabilities 659,869, ,460, ,195,680 Common Stock: 7,000,000 Shares Authorized 4,826,654 Shares Issued in ,826,654 4,795,181 4,246,538 4,795,181 Shares Issued in ,246,538 Shares Issued in 2015 Capital Surplus and Additional Paid-In Capital 42,016,456 41,595,787 36,534,028 Retained Earnings 23,188,835 18,330,727 12,799,079 Accumulated Other Comprehensive Income (Loss) (787,714) (473,185) 100,670 Treasury Stock at Cost (6,698,008) (5,900,366) (360,191) 451,093 Shares in ,362 Shares in ,017 Shares in 2015 Total Shareholders Equity 62,546,223 58,348,144 53,320,124 Total Liabilities and Shareholders Equity 722,416, ,808, ,515,804 4

5 Consolidated Income Statement PERIODS ENDING DECEMBER 31, 2017, 2016, and 2015 INTEREST INCOME Loan Interest Income 22,807,022 19,451,824 18,739,029 Fee Income 1,147,336 1,084,308 1,032,130 Investment Income 2,452,817 1,871,853 1,654,029 Fed Funds Sold 44,711 17,078 12,154 Other Income 185, , ,707 Total Interest and Fee Income 26,637,184 22,558,734 21,560,049 INTEREST EXPENSE Checking Savings Public Funds Certificates of Deposits Borrowed Funds Total Interest Expense 1,184,352 21,792 79,917 2,985, ,892 5,015, , ,787 16,562 16, ,045,104 2,006, ,787 53,956 3,299,492 3,034,434 Net Interest Income 21,621,668 19,259,242 18,525,615 Non-Interest Income 4,234,384 6,021,352 4,381,571 NON-INTEREST EXPENSE Salaries and Employee Benefits 10,798,190 9,094,409 8,330,042 Office Occupancy 1,453,409 1,389,102 1,320,600 Data Processing & Equipment 2,139,575 2,053,735 1,687,506 All Other 4,718,712 3,872,646 3,483,951 Total Non-Interest Expense 19,109,886 16,409,892 14,822,099 Provision for Loan Losses 1,141, , ,000 Net Income Before Taxes 5,605,166 8,612,702 7,769,087 Income Taxes 880,260 3,081,054 2,768,780 Net Income 4,724,906 5,531,648 5,000,307 5

6 In October 2017, we hosted our First Annual city-wide event for business leaders called Business Triumphs. The symposium, held at the FedEx Institute of Technology on the University of Memphis campus, allowed attendees to learn more about developing a successful exit strategy for their business. The event included a keynote address from a national expert, followed up an all-star panel of local experts. We look forward to hosting our next Business Triumphs event in Fall We are very happy to announce the formation of the Triumph Community Development Foundation in The mission of our Foundation is to provide support of education and economic development through grants and gifts-in-kind to the low-to-moderate income communities in the greater Memphis metropolitan area. Through our initiative,, our team and Board of Directors collectively served over 541 hours with our community partners in 2017, a 27% increase over Some of the community partners who benefitted from the volunteer work and Foundation grants include Binghampton Christian Academy, Advance Memphis, Mid-South Minority Business Continuum s Technical Assistance and Developmental Pool, and the Frayser Community Development Corporation. We look forward to making even more contributions in time and resources in 2018! 6

7 FINANCIAL SERVICES Commercial Lending Services Commercial Real Estate Loans Residential Real Estate Loans Accounts Receivable, Inventory, & Equipment Loans Small Business SBA Loans Consumer Lending Services Home Equity Lines of Credit Automobile Loans Loans for Personal Expenditures Mortgage Origination Loans Commercial Deposit Services Business Analysis Accounts Business Checking Business Savings Business Wealth Money Market Accounts Certificates of Deposit Business Remote Deposit Capture Lock Box Services Business Online Banking Business Mobile Banking Business Mobile Deposit Zero Balance Accounts Event Manager ACH & Wire Transfer Services Night Depository Business Credit Cards Business Bill Payment Positive Pay estatements Investment / Loan Sweep Consumer Deposit Services Complimentary Checking Performance Checking Prime Timer Checking Classic Savings Junior Banker Savings Consumer Wealth Money Market Accounts Certificates of Deposit Individual Retirement Accounts (IRAs) Online Banking & Bill Pay Services Mobile Banking Mobile Deposit Capture Telephone Banking Safe Deposit Boxes ATMs Including nationwide networks estatements Instant Issue Debit Cards Transfer Now (External Transfers) Medical Private Banking Checking BOARD OF DIRECTORS Hilliard R. Crews CHAIRMAN OF THE BOARD OF TRIUMPH BANCSHARES, INC CHAIRMAN, SHELBY GROUP INTERNATIONAL, INC William J. Chase, Jr. PRESIDENT & CEO, TRIUMPH BANK Michael J. McCarver EVP & COO, TRIUMPH BANK Jason L. Crews CEO, CREWS DEVELOPMENT, LLC Mark J. Halperin EVP & COO, BOYLE INVESTMENT COMPANY J. Kenneth Marston, Jr. CEO & SENIOR PARTNER, THE MARSTON GROUP, PLC Rick C. Masson EXECUTIVE DIRECTOR, PLOUGH FOUNDATION Larry W. Papasan RETIRED PRESIDENT OF MLG&W, SMITH & NEPHEW ORTHOPAEDICS Richard L. Powell PRINCIPAL, HARRIS MADDEN & POWELL, INC. John A. Bobango CHIEF MANAGER, FARRIS BOBANGO, PLC Mitchell D. Spurlock CHAIRMAN, AQUA CHEMPACS CHAIRMAN, POWER TRANSPORT CHAIRMAN, POWER FREIGHT 7

8 FULL-SERVICE BANKING OFFICES 5699 Poplar Avenue Memphis, TN West Farmington Boulevard Germantown, TN West Poplar Avenue Collierville, TN Airline Road Arlington, TN COMMERCIAL & MORTGAGE LENDING OFFICE 5904 Ridgeway Center Parkway Memphis, TN MORTGAGE LENDING & OPERATIONS CENTER 1125 Schilling Boulevard East, Suite 107 Collierville, TN triumphbank.com triumphmortgage.com