Economic Risks - The company is exposed to various economic risks, including potential constraints on growth and profitability due to weak economic conditions in the U.S. and globally [141]. - Small-to-mid-sized businesses, which make up a significant portion of the loan portfolio, may be more vulnerable to economic downturns, impacting their ability to repay loans [150]. - The company faces risks related to agriculture loans, where decreases in commodity prices could negatively affect borrower cash flows and collateral value [147]. Credit Risk - A significant portion of the loan portfolio consists of commercial finance products, which may expose the company to additional credit risk due to clients lacking sufficient operating history or cash flows [146]. - The company has experienced fraud in its asset-based lending and factoring products, which could lead to material losses if controls are ineffective [145]. - The lack of seasoning in parts of the loan portfolio may increase the risk of credit defaults as newer loans may not yet show signs of deterioration [148]. - The company’s ability to measure and limit credit risk associated with its loan portfolio is crucial for maintaining profitability [149]. - The company anticipates additional loan losses in the future, which may require further provisions for loan losses [156]. - The company is exposed to credit and market risk through derivative transactions, which could adversely affect profitability [157]. Operational Risks - The company is subject to operational risks, including system failures and cybersecurity threats, which could adversely affect its financial condition and results of operations [141]. - The company faces challenges in providing high-quality customer support as it scales its Payments and Intelligence businesses, which could adversely affect its reputation and financial results [186]. - Cyber incidents are increasing in sophistication, posing risks to the company's operations and customer data security [188]. - The company has implemented multiple security measures, but evolving techniques used by attackers may hinder its ability to prevent breaches [189]. - Any significant security breach could lead to substantial capital expenditures and potential liabilities that may not be fully covered by insurance [190]. Financial Performance - Net income available to common stockholders dropped significantly to $12,884 thousand in 2024 from $37,875 thousand in 2023, reflecting a challenging financial environment [352]. - The company experienced a decline in net income, which fell to $16,090 thousand in 2024 from $41,081 thousand in 2023, highlighting profitability challenges [352]. - Noninterest expense increased to $376,635 thousand in 2024 from $353,234 thousand in 2023, suggesting rising operational costs [352]. - Credit loss expense increased to $18,767 thousand in 2024 from $12,203 thousand in 2023, indicating a rise in potential loan defaults [352]. Competition and Market Environment - The company faces intense competition from larger financial institutions and fintech companies, which could impact growth and profitability [166]. - The competitive landscape is expected to change significantly, with competitors potentially lowering prices and fees, which may negatively impact the company's financial performance [205]. - The company anticipates intensified competition due to new technologies and market entrants, which could lead to reduced sales and margins [206]. Regulatory Environment - The company is subject to extensive regulation, which may increase costs and affect its ability to conduct business efficiently [238]. - Regulatory changes may significantly impact the company's operations, including lending practices and capital structure, potentially placing it at a competitive disadvantage [232]. - The Federal Reserve may impose higher capital requirements on the company, especially during internal growth or acquisitions [248]. Growth Strategies - The company plans to invest significantly in sales and marketing and research and development to support growth [162]. - The company plans to expand its TriumphPay platform to increase customer adoption of integrated payments transactions, which will generate fee income based on transaction volume [180]. - The company’s growth prospects heavily depend on the success of its Payments and Intelligence businesses, which require attracting and retaining customers [171]. Liquidity and Capital Management - A lack of liquidity could adversely affect the company's operations and financial condition, emphasizing the importance of generating deposits [223]. - The company has historically relied on acquiring additional banks with excess liquidity to offset the slower growth of transactional deposits [226]. - The company is required to maintain a minimum common equity Tier 1 capital ratio of 4.5%, total Tier 1 capital ratio of 6%, total capital ratio of 8%, and leverage ratio of 4% [247]. Investment and Asset Management - The carrying value of the investment securities portfolio as of December 31, 2024, was approximately $469.9 million, including $381.6 million in available-for-sale debt securities [265]. - The company has investments with a net carrying amount of $1.9 million in the subordinated notes of three CLOs as of December 31, 2024 [230]. - Goodwill amounted to $241.9 million, representing about 27% of total equity as of December 31, 2024 [269]. Customer Retention and Service - The company faces risks related to customer retention, as contracts are generally month-to-month, and customers may choose not to renew their services [174]. - The company is exposed to risks associated with handling customer funds, including potential fraud and transaction processing errors [185]. - The company has limited experience in determining optimal pricing strategies for its services, which may affect its ability to attract new customers [184].

Financial Data and Key Metrics - The company discussed its Q4 2024 and full-year 2024 results, highlighting the performance and introducing a new segment [1] - The company emphasized the opportunities arising from the density established in its network, particularly in helping America's truckers get paid with greater speed, accuracy, and transparency [1] Business Line Data and Key Metrics - The company is leveraging its transportation technology investments to benefit its partners, indicating growth in its TriumphPay segment [1] Market Data and Key Metrics - No specific market data or key metrics were provided in the content [1] Company Strategy and Industry Competition - The company is focused on enhancing its network density and leveraging technology to improve payment processes for truckers, which could position it favorably in the transportation and logistics industry [1] Management Commentary on Operating Environment and Future Outlook - The company expressed excitement about the opportunities developing from its network density and its ability to improve payment processes for truckers [1] - Forward-looking statements were mentioned, indicating potential risks and uncertainties that could affect future results [1] Other Important Information - The company reminded participants that the call may include forward-looking statements, which are subject to risks and uncertainties [1] Q&A Session Summary - No specific questions or answers were provided in the content [1]

Financial Performance - For Q4 2024, the company reported a net income of $3.0 million, or $0.13 per diluted share, and a full-year net income of $12.9 million, or $0.54 per diluted share[1]. - The company reported a net income to common stockholders of $3.04 million for Q4 2024, down from $4.55 million in Q3 2024[66]. - Net income available to common stockholders for Q4 2024 was $3,036, compared to $4,546 in Q3 2024, a decrease of 33.14%[80]. - The company anticipates Q1 earnings may be lower than the previous quarter, with many discussed initiatives not generating revenue until later in the year[53]. - Basic earnings per common share for Q4 2024 was $0.13, down from $0.38 in the same quarter last year[62]. - Return on average assets decreased to 0.26% for the quarter, down from 0.70% a year ago[62]. - Return on average total equity was 1.70%, down from 4.40% in the previous year[62]. - Net income for the quarter was $3,838 thousand, a decrease of 28.1% compared to $5,347 thousand in the previous quarter[65]. Market and Growth Initiatives - The company managed to touch over 50% of all brokered freight transactions, equating to a $110 billion addressable truckload market, and expects to surpass $100 billion in payments through TriumphPay in Q1 2025[2]. - The company plans to roll out additional products in 2025 to strengthen its network, despite current market challenges[5]. - TriumphPay's annualized network engagement reached approximately $53.6 billion, representing 48.7% of the estimated $110 billion truckload brokered market[31]. - The Factoring-as-a-Service (FaaS) offering is a key growth strategy, with successful beta testing completed with the first partner, CHRW[42]. Expenses and Cost Management - Expenses in Q4 2024 were $97 million, which was better than the target, with a 2.5% decline from the previous quarter, primarily due to reduced compensation expenses[2]. - Projected operating expenses for Q1 2025 are approximately $99 million, reflecting growth to support strategic initiatives[52]. - Total noninterest expense was $93,275 thousand, down from $95,646 thousand in the previous quarter, indicating a reduction of 2.4%[65]. - Noninterest expenses for Q4 2024 totaled $93,275, slightly down from $95,646 in Q3 2024, a decrease of 2.45%[80]. Asset and Loan Management - Loans held for investment increased to $4.55 billion in Q4 2024, up from $4.33 billion in Q3 2024, while deposits rose to $4.82 billion[7]. - Total assets increased to $5,948,975 thousand as of December 31, 2024, up from $5,347,334 thousand a year earlier, representing a growth of 11.3%[62]. - Total loans held for investment increased to $4,546.96 million as of December 31, 2024, up 4.9% from $4,332.97 million in September 2024[67]. - Non-performing loans to total loans ratio was 2.49%, an increase from 1.65% in the previous year[62]. Segment Performance - The Factoring segment's operating margin in Q4 was 23.7%, with a long-term goal of achieving a consistent 40% operating margin[20]. - The Payments segment achieved an EBITDA margin of 8.6% in Q4, with noninterest income growing 1.4% quarter-over-quarter and 17.4% year-over-year[21]. - Triumph's Intelligence segment aims to turn data into actionable insights, enhancing efficiency and decision-making in the trucking industry[12]. - The acquisition of Isometric Technologies was completed, leading to the establishment of a new segment called Intelligence[2]. Revenue and Income Trends - The average yield on receivables decreased by 0.21% to 13.36%, while charge-offs were at 0.26%, consistent with historical trends[35]. - Noninterest income totaled $15,751 thousand, a decrease of 10.0% from $17,497 thousand in the previous quarter[65]. - Total revenue for the Payments segment reached $15,031,000 in December 2024, up 1.1% from $14,873,000 in September 2024[75]. - Factoring total revenue for the quarter was $38,212,000, an increase from $37,939,000 in the prior quarter[73]. Operational Metrics - The average transportation invoice price in Q4 was $1,767, reflecting a $14 decrease year-over-year but a $43 increase from Q3 2024[34]. - The Instant Decision model achieved a 74.8% pass rate for small carriers, with an average invoice approval time of nine seconds[45]. - The fuel program saved carriers approximately $3.5 million in 2024, with expectations to triple savings in the upcoming year[41]. - Network transactions decreased by 14.3% relative to Q3 but increased by 28.2% year-over-year, indicating a focus on growth despite recent challenges[23].

Financial Results - Triumph Financial, Inc. has released its fourth quarter 2024 financial results [1] - The financial results and shareholder letter are available on the company's website [1] Conference Call - A conference call to review the financial results will be held on January 23, 2025, at 9:30 a.m. central time [1] - Investors can access the live video conference through a provided link or by dialing a specific phone number [2] Company Overview - Triumph Financial, Inc. is a financial holding company focused on payments, factoring, and banking [3] - The company is headquartered in Dallas, Texas, and has a diversified portfolio of brands including TriumphPay, Triumph, and TBK Bank [3]

DALLAS, Jan. 10, 2025 (GLOBE NEWSWIRE) -- Triumph Financial, Inc. (Nasdaq: TFIN) today announced that it expects to release its fourth quarter financial results and management commentary after the market closes on Wednesday, January 22, 2025. Upon filing, the financial results and commentary will be available on the Company’s website at tfin.com. Aaron P. Graft, Vice Chairman and CEO, and Brad Voss, CFO, will review the financial results in a conference call with investors and analysts beginning at 9:30 a.m ...

Financial Data and Key Metrics Changes - The company acknowledged that the freight market remains challenging, with no immediate hope for a turnaround, but expressed confidence in long-term recovery [4] - TriumphPay has seen a year-over-year revenue increase of over 30%, despite the ongoing freight recession [18][19] Business Line Data and Key Metrics Changes - TriumphPay is experiencing strong growth, with expectations to eclipse over 50% of brokered freight transactions [20] - The factoring business is facing challenges, but the company believes that the small trucker segment will not disappear and will return to the market when conditions improve [7][8] Market Data and Key Metrics Changes - The independent owner-operator base has shrunk, but management believes this trend will stabilize or recover in the long term [6][7] - The company is optimistic about the onboarding of C.H. Robinson, which is expected to significantly contribute to payment volume in Q4 and into Q1 [10][11] Company Strategy and Development Direction - The company is focused on leveraging technology, including AI and machine learning, to enhance its factoring business and improve operational efficiency [4][14] - Triumph is committed to expanding its LoadPay service and exploring additional revenue streams, including potential small dollar advances [42][44] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the freight market but is optimistic about the long-term potential of their services [18][19] - The company believes that the current freight recession masks the underlying growth and innovation occurring within TriumphPay [19] Other Important Information - The company is experiencing a healthy pipeline for new clients, particularly in the factoring space, despite some challenges in onboarding [10][12] - Management emphasized the importance of distribution channels for LoadPay, leveraging existing relationships with factoring clients and carriers [22][23] Q&A Session Summary Question: What is the outlook for the independent truck driver base? - Management believes that the small trucker segment will not disappear and will return when market conditions improve [6][7] Question: Can you provide details on the expected payment volume from C.H. Robinson? - Management indicated that the majority of C.H. Robinson's truckload volume will be on their platform by the end of Q4 and into Q1 [10][11] Question: How is TriumphPay performing in the current market? - TriumphPay has achieved over 30% year-over-year revenue growth despite the freight recession [18][19] Question: What is the strategy for LoadPay and potential revenue models? - The company is exploring various revenue models for LoadPay, including interchange fees and potential small dollar advances [42][44] Question: What factors contributed to the loss of a factoring client? - The client moved their relationship off the network, but management does not believe this was due to the company's factoring business [31][32]

Financial Performance - For the three months ended September 30, 2024, net income available to common stockholders was $4.5 million, or $0.19 per diluted share, a decrease from $12.0 million, or $0.51 per diluted share for the same period in 2023[179]. - Net income for Q3 2024 was $5,347,000, down from $12,794,000 in Q3 2023, representing a decline of about 58%[189]. - Net income for the nine months ended September 30, 2024, was $12.3 million, down from $31.5 million in the same period of 2023, a decrease of $19.2 million or 61.0%[257]. - Operating income for the Banking segment decreased by $7.9 million, or 21.4%, to $29.1 million[232]. - Corporate and Other reported an operating loss of $28.1 million for Q3 2024, compared to a loss of $24.2 million in Q3 2023, an increase in loss of $3.9 million or 16.2%[256]. Revenue and Income Sources - The Banking segment generated 61% of total segment revenue, the Factoring segment generated 30%, and the Payments segment generated 9% for the nine months ended September 30, 2024[178]. - Noninterest income increased to $17,497,000 in Q3 2024 from $13,410,000 in Q3 2023, reflecting a growth of approximately 30.5%[189]. - Noninterest income rose to $49.7 million for the nine months ended September 30, 2024, compared to $35.9 million in 2023, representing a growth of 38.2%[258]. - Total interest income for the nine months ended September 30, 2024, was $317.0 million, a slight increase of $3.3 million or 1.1% from $313.7 million in 2023[258]. Asset and Loan Growth - As of September 30, 2024, the company had total assets of $5.866 billion, total loans held for investment of $4.333 billion, and total deposits of $4.707 billion[173]. - Total loans held for investment increased by $169.9 million during the nine months ended September 30, 2024, with Banking loans increasing by 2.7% and Factoring receivables increasing by 9.5%[180]. - Total assets increased to $5,866,046,000 as of September 30, 2024, compared to $5,347,334,000 at the end of 2023, marking a growth of approximately 9.7%[191]. - The aggregate outstanding balances of banking products increased by $82.9 million, or 2.7%, to $3.129 billion as of September 30, 2024[302]. Credit Quality and Losses - Nonperforming loans to total loans ratio increased to 2.62% as of September 30, 2024, compared to 1.65% at the end of 2023, indicating a deterioration in asset quality[191]. - Credit loss expense on loans increased by $4.1 million, or 392.3%, for the three months ended September 30, 2024, compared to the same period in 2023[212]. - The allowance for credit losses (ACL) on loans was $41.2 million as of September 30, 2024, representing an ACL to total loans ratio of 0.95%[212]. - Total credit loss expense rose to $14.3 million for the nine months ended September 30, 2024, up from $6.1 million in the same period in 2023, representing a 135.9% increase[270]. Expenses and Efficiency - Total noninterest expense increased to $95,646 thousand in Q3 2024, up 10.9% from $86,259 thousand in Q3 2023[197]. - The efficiency ratio for Q3 2024 was 90.06%, compared to 82.36% in Q3 2023, suggesting increased operational costs relative to income[189]. - Salaries and employee benefits expenses increased by $4.6 million, or 9.0%, driven by an increase in workforce size to an average of 1,542.3 full-time equivalent employees[218]. - Total noninterest expense increased by $17.4 million or 6.6%, totaling $283.4 million for the nine months ended September 30, 2024[280]. Capital and Equity - Total stockholders' equity increased by $21.4 million during the nine months ended September 30, 2024, reaching $885.8 million[181]. - The company reported a book value per share of $35.95 as of September 30, 2024, up from $35.16 at the end of 2023[191]. - The company’s stockholders' equity increased to $885.8 million as of September 30, 2024, up from $864.4 million at the end of 2023, primarily due to net income of $12.3 million[361]. Deposits and Funding - Total deposits rose by $729.2 million, or 18.3%, to $4.706694 billion, primarily driven by an increase in noninterest bearing demand deposits and brokered time deposits[351]. - The average daily balance of customer repurchase agreements was $723 thousand for the year ended December 31, 2023, with a weighted average interest rate of 0.03%[354]. - The company’s deposit base is diverse, with a significant portion being FDIC insured, reflecting a normalizing trend from pandemic-era balances[352]. Strategic Initiatives and Investments - The company made a $9.7 million minority investment in Trax Group, Inc. for transportation spend management solutions[186]. - The acquisition of HubTran has shifted TriumphPay's strategy towards an open-loop payments network, enhancing its presentment, audit, and payment capabilities[253]. - The company has enhanced its stress testing to mitigate interest rate reset risk due to rising market interest rates since 2022[333]. Market and Economic Outlook - The company forecasts minimal change in national unemployment and a slight decline in national retail sales over the next quarters[342]. - Forward-looking statements indicate that actual results may differ materially from expectations due to inherent uncertainties[371].

phFinancial Exhibit 99.1 October 16, 2024 Fellow Shareholders, For the third quarter, we earned net income to common stockholders of $4.5 million, or $0.19 per diluted share. Discussion of the Quarter Here are the things I think investors should keep top of mind about the quarter: • The freight recession is closer to ending than when it began, but that does not necessarily mean it will end soon. We are 33 months into a freight recession. That makes it the longest since deregulation in 1980. Brokers and carr ...

DALLAS, July 30, 2024 (GLOBE NEWSWIRE) -- Triumph Financial, Inc. (NASDAQ:TFIN) is pleased to announce today the appointment of Mitchell Lee as chief risk and compliance officer. In his new role, Lee will be responsible for providing strategic oversight of the company's enterprise risk and compliance efforts. This includes driving the ongoing development of a comprehensive enterprise risk management framework across all divisions of Triumph Financial including TriumphPay, Triumph and TBK Bank. Reporting dir ...

Triumph Financial, Inc. (NASDAQ:TFIN) Q2 2024 Earnings Conference Call July 18, 2024 10:00 AM ET Company Participants Luke Wyse - Senior Vice President, Head of Investor Relations Aaron Graft - Founder, Vice Chairman and Chief Executive Officer Melissa Forman - President, TriumphPay Tim Valdez - President, Factoring Division Conference Call Participants Tim Switzer - KBW Gary Tenner - D.A. Davidson Jordan Ghent - Stephens Hal Goetsch - B. Riley Securities Frank Schiraldi - Piper Sandler Luke Wyse Good morni ...