2013ANNUALREPORT

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If you’re a sports fan, the end of the year is a very exciting time as you have the opportunity to experience the previous year’s “Best Plays,” “Best Shots,” or “Best Putts” of your favorite sports team or golfer. Since our specialty is banking, we want to share our “2013 Top 5 Triumph Moments” with you. As we continue to grow both in size and profitability, we predict our future “Top 5” will be even more exciting than this year’s.

First, we are pleased to report to you a record 2013 after tax profit of $3,399,000 which is up 71% over our 2012 profit of $1,986,000. Increases of over 13% in loans and an increased profit margin on loans were key reasons for the large increase. Per share earnings were $0.83 and ROE (return on beginning equity) was 8.7%. Our short term goal is to get the ROE above 10% so we are progressing toward our goal. We are pleased with this profit as it demonstrates the convergence of a growing balance sheet, attention to operating expenses, and good asset quality. Another important note is this is our fifth year in a row to report a profit, and only one other Memphis based bank can say this.

Second, our asset quality continues to be very good. Despite our rapid growth, we have been able to keep our asset quality expense (loan losses, losses on the sale of foreclosed properties and the legal expense of collecting loan balances) below 30/100 of 1%. This compares very favorably with our peers.

Third, we ended the year with assets in excess of $430,000,000 and now have $500,000,000 in our sights. The $500,000,000 in assets is an important objective as our industry recognizes this as a different class of community bank.

Fourth, on August 31, 2013, we purchased M&P Mortgage from Merchants & Planters Bank of Bolivar, TN. We merged this company into our own mortgage operation and named the combined operation Triumph Mortgage. The combined volume will be more than 10 times the previous pre-acquisition volume and also allows us to add additional mortgage products such as Jumbo Loans without Private Mortgage Insurance and very competitively priced Adjustable Rate Mortgages. Mortgage did not contribute to our income in 2013, but we expect it will have a favorable impact on our 2014 earnings.

Fifth and finally, we opened our new Operations Center in May at Moriah Woods Office Park. This will help us increase efficiencies and allow for future growth of bank operations and administration.

One negative this year was the value of our investment portfolio. Banks have investment portfolios to provide backup liquidity to fund loans. In 2013, the market value of our portfolio fell $800,000. Per GAAP accounting, we are required to report this loss as a reduction in Equity on the Balance Sheet, and it is not shown on the income statement. We normally purchase investments that have a shorter duration, higher credit quality and with a plan to hold until maturity. We expect some rebound in the market value of these assets as they mature, and since we plan on holding most until maturity, this should have a minimal effect on our equity over time.

Our plan for 2014 is to increase loans and assets another 13-14% and exceed $500 million in Assets. We encourage you to refer business to us which will help us reach this goal.

Thank you for all of your support, as always. Please call us when we can be of service to you, your family and friends.

Sincerely,

Hilliard R. Crews William J. Chase, Jr.Chairman of the Board President and Chief Executive Officer

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$500,000,000

$400,000,000

$300,000,000

$200,000,000

$100,000,000

TOTA

L A

SSE

TS

2009 2010 2011 2012 2013

$500,000,000

$400,000,000

$300,000,000

$200,000,000

$100,000,000

NE

T LO

AN

S

2009 2010 2011 2012 2013

$40,000,000

$30,000,000

$20,000,000

$10,000,000

SHA

RE

HO

LDE

RS’

EQ

UIT

Y

2009 2010 2011 2012 2013

$400,000,000

$300,000,000

$200,000,000

$100,000,000

TOTA

L D

EP

OSI

TS &

B

OR

RO

WE

D F

UN

DS

2009 2010 2011 2012 2013

$1,500,000

$1,125,000

$750,000

$375,000

NO

N IN

TER

EST

INC

OM

E

2009 2010 2011 2012 2013

$6,000,000

$4,500,000

$3,000,000

$1,500,000

NE

T IN

CO

ME

BE

FOR

E T

AX

ES

2009 2010 2011 2012 2013

Consolidated Balance Sheet Period ending 12/31/2013

ASSETS

Cash and Cash Equivalents

Securities Available for Sale

Loans Held for Sale

Loans, Net of Deferred Fees and Allowance for Loan Losses

Premises and Equipment, Net of Accumulated Depreciation

Other Assets

Total Assets

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deposits

Other Borrowings

Other Liabilities

Total Liabilities

Preferred Stock: 1,000,000 Shares Authorized

Class A - 295,500 Shares Issued and Outstanding

Class B - 12,167 Shares Issued and Outstanding

Common Stock: 5,000,000 Shares Authorized

4,115,708 Shares Issued

4,072,108 Shares Outstanding

Capital Surplus and Additional Paid-In Capital

Treasury Stock, 43,600 Shares Redeemed

Accumulated Other Comprehensive Income

Retained Earnings (Accumulated Deficit)

Total Shareholders’ Equity

Total Liabilities and Shareholders’ Equity

2013

9,881,829

56,682,383

3,061,953

354,929,170

3,306,270

9,578,567

437,440,172

380,257,481

13,000,000

2,188,077

395,445,558

4,115,708

35,126,606

(490,500)

(677,881)

3,920,681

41,994,614

437,440,172

2012

9,012,435

63,116,259

1,764,117

313,627,988

3,475,742

8,048,476

399,045,017

340,221,235

18,000,000

1,530,214

359,751,449

3,546,000

146,004

3,629,311

31,846,582

(490,500)

91,563

524,608

39,293,568

399,045,017

2011

12,401,311

43,717,719

165,500

241,289,209

3,573,357

7,242,128

308,389,224

275,592,184

6,600,000

1,430,248

283,622,432

3,546,000

146,004

2,279,311

21,030,259

(490,500)

(290,106)

(1,454,176)

24,766,792

308,389,224

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Consolidated Income StatementPeriod ending 12/31/2013

INTEREST INCOME

Loan Interest Income

Fee Income

Investment

Fed Funds Sold

Other Income

Total Interest and Fee Income

INTEREST EXPENSE

Checking

Savings

CD

Borrowed Funds

Total Interest Expenses

Net Interest Income

Non-Interest Income

NON-INTEREST EXPENSE

Employee

Occupancy

F.F. & E. and D.P.

Other

Total Non-Interest Expenses

Allowance for Loan Losses

Net Income Before Taxes

Income Tax (Credit)

Net Income

2013

16,841,698

648,195

1,210,595

9,665

114,396

18,824,549

957,503

14,946

1,622,239

40,102

2,634,790

16,189,759

1,410,630

6,006,723

1,151,371

1,323,741

2,295,383

10,777,218

1,065,000

5,758,171

2,358,450

3,399,721

2012

14,291,471

568,860

1,209,260

20,212

75,260

16,165,063

982,271

20,620

1,937,211

103,012

3,043,114

13,121,949

808,901

5,060,613

1,046,580

1,075,362

2,136,289

9,318,844

1,281,000

3,331,006

1,344,922

1,986,084

2011

12,401,485

406,689

989,658

20,034

58,440

13,876,306

875,279

15,981

2,361,413

135,771

3,388,444

10,487,862

621,723

3,818,621

822,752

240,919

2,384,269

7,266,561

1,262,000

2,581,024

(545,000)

3,126,024

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Triumph is happy to announce that the Board of Directors recently adopted a new logo and brand message that is being rolled out throughout 2014. Let’s talk growth reflects Triumph’s focus of working side by side with its customers each day to help them reach their goals and experience growth. This growth can be demonstrated through helping them fund a new or existing business, earn a greater interest rate on their accounts and CDs, or through the purchase of a new home.

2014 also brings enhanced technology to our customers, including a new Mobile App for all hand held devices featuring Mobile Capture for our consumer customers that allows remote depositing of checks. We are also proud to launch our new redesigned website www.triumphbank.com. Our new site offers more convenient navigation for Triumph customers to conduct their online banking and discover the features of additional accounts they may need.

Let’s talk growth also reflects inwardly as we are proud of the team of Triumph employees that demonstrate outstanding customer service and always strive to exceed your expectations. Triumph encourages them to grow and flourish in their careers because when we triumph, you triumph.

Let’s talk growth.

A bank should be more about safeguarding your savings. It should help you reach your potential. Triumph offers a host of services that can do just that. Welcome to Triumph.

Let’s talk growth.

Confidence. Ability. Worth.

triumphbank.com triumphmortgage.com

(901) 333-8800

triumphbank.com triumphmortgage.com

(901) 333-8800

Growth, without the growing pains. Your personal growth should be without limits.

Without impediment. Triumph offers a suite of

financial services that capitalize on your potential

without ever slowing you down. Welcome to Triumph.

Let’s talk growth.

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Commercial Lending ServicesCommercial Real Estate LoansResidential Real Estate LoansAccounts Receivable, Inventory, & Equipment LoansSmall Business “SBA” Loans

Commercial Deposit ServicesBusiness Analysis AccountsBusiness CheckingBusiness SavingsBusiness Wealth Money Market AccountsCertificates of DepositBusiness Remote Deposit CaptureLock Box ServicesOnline BankingACH & Wire Transfer ServicesNight DepositoryBusiness Credit CardsBusiness Bill PaymentPositive PayeStatementsInvestment / Loan Sweep

Consumer Lending ServicesHome Equity Lines of CreditAutomobile LoansLoans for Personal ExpendituresMortgage Origination Loans

Consumer Deposit ServicesComplimentary CheckingPerformance CheckingPrime Timer CheckingClassic SavingsJunior Banker SavingsConsumer Wealth Money Market AccountsCertificates of DepositIndividual Retirement Accounts (IRAs)Online Banking & Bill Pay ServicesMobile BankingMobile Deposit CaptureTelephone BankingSafe Deposit BoxesATMs Including nationwide networkseStatements

Hilliard R. CrewsCHAIRMAN Of THE BOARD Of TRIuMPH BANCSHARES, INC.

CHAIRMAN, SHELBy GROuP INTERNATIONAL, INC.

William J. Chase, Jr.PRESIDENT & CEO, TRIuMPH BANk

Michael J. McCarverEVP & COO, TRIuMPH BANk

A. Douglas CollinsPRESIDENT & CEO, COLDWELL BANkER COLLINS-MAuRy, INC. REALTORS

fOuNDER & CEO, SOVEREIGN HOMES, LLC.

Jason L. CrewsCHIEf MANAGER, CREWS REALTy, LLC

Stephen T. DunavantSENIOR MANAGING DIRECTOR, CBIZ MHM

Mark J. HalperinEVP & COO, BOyLE INVESTMENT COMPANy

Rick C. MassonSENIOR DIRECTOR, CAISSA PuBLIC STRATEGy

SPECIAL MASTER, OVERSEEING SCHOOLS MERGER

Joseph W. Mirabile, Ph.D.CEO, MIRABILE INVESTMENT CORPORATION

Larry W. Papasan RETIRED PRESIDENT Of MLG&W, SMITH & NEPHEW ORTHOPAEDICS

David C. PerdueCEO, ASENTINEL

Richard L. PowellPRINCIPAL, HMP INSuRANCE

King W. Rogers, IIIATTORNEy Of COuNSEL, GLANkLER BROWN, PLLC

Mitchell D. SpurlockCHAIRMAN, AquA CHEMPACS

Thomas G. Stovall, M.D., MBAPHySICIAN & PARTNER, WOMEN’S HEALTH SPECIALISTS, INC.

FINANCIAL SERVICES

BOARD OF DIRECTORS

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