Core Insights - Triumph Financial (TFIN) reported revenue of $105.08 million for the quarter ended June 2024, reflecting a year-over-year increase of 2.1% [4] - The reported revenue exceeded the Zacks Consensus Estimate of $103.43 million by 1.60%, while the EPS of $0.08 represented a significant decline of 72.41% compared to $0.29 a year ago, resulting in an EPS surprise of -61.90% [1][4] Financial Metrics - Efficiency ratio stood at 92.6%, higher than the average estimate of 90.3% based on three analysts [3] - Average Interest Earning Assets were reported at $5 billion, slightly below the estimated $5.18 billion [3] - Net Interest Margin was reported at 7.1%, matching the average estimate [3] - Total Noninterest Income was $17.17 million, exceeding the estimated $15.85 million [3] - Net Interest Income was $87.92 million, slightly above the average estimate of $87.57 million [3] - Card income reached $2.09 million, surpassing the estimated $1.99 million [3] - Fee income was reported at $8.52 million, below the estimated $9.36 million [3] - Insurance commissions were $1.51 million, exceeding the estimate of $1.22 million [3] - Other income was $3.13 million, significantly above the estimated $1.21 million [3] - Service charges on deposits amounted to $1.81 million, slightly above the estimated $1.77 million [3] Stock Performance - Triumph Financial shares have returned +21.4% over the past month, outperforming the Zacks S&P 500 composite's +4.4% change [6] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [6]

This quarterly report represents an earnings surprise of -61.90%. A quarter ago, it was expected that this financial holding company would post earnings of $0.32 per share when it actually produced earnings of $0.14, delivering a surprise of -56.25%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. While Triumph Financial has underperformed the market so far t ...

Financial Performance - For the three months ended June 30, 2024, net income available to common stockholders was $1.9 million, or $0.08 per diluted share, a decrease from $6.8 million, or $0.29 per diluted share for the same period in 2023[358]. - The company's return on average common equity for the three months ended June 30, 2024, was 0.94%, down from 3.45% for the same period in 2023[358]. - The efficiency ratio for the three months ended June 30, 2024, was 92.64%, compared to 87.80% for the same period in 2023, indicating increased operational costs relative to income[366]. - The company reported a net income before income tax expense of $8,351 thousand for the six months ended June 30, 2024[377]. Income and Expenses - Noninterest income for the three months ended June 30, 2024, was $17.167 million, compared to $11.511 million for the same period in 2023, reflecting a significant increase[360]. - Noninterest income for the three months ended June 30, 2023, totaled $11,511 thousand, while noninterest expense was $90,396 thousand, resulting in a net income before income tax expense of $9,923 thousand[376]. - Net interest income after credit loss expense for the same period was $88,808 thousand, reflecting a decrease from the previous period due to credit loss expense of $2,643 thousand[376]. - Net interest income after credit loss expense for the six months ended June 30, 2024, was $163,899 thousand, with credit loss expense recorded at $10,051 thousand[377]. Assets and Liabilities - As of June 30, 2024, the company had consolidated total assets of $5.783 billion, total loans held for investment of $4.288 billion, total deposits of $4.392 billion, and total stockholders' equity of $874.2 million[354]. - Total liabilities increased to $4.909 billion at June 30, 2024, compared to $4.483 billion at December 31, 2023, with deposits rising by $414.5 million during the first half of 2024[359]. - Total assets as of June 30, 2024, amounted to $5,783,334 thousand, an increase from $5,347,334 thousand as of December 31, 2023[381]. - Gross loans as of June 30, 2024, were $4,288,417 thousand, compared to $4,163,100 thousand as of December 31, 2023[381]. Market and Investment - The company made a $9.7 million minority investment in Trax Group, Inc. on June 22, 2023, which is accounted for as an equity investment without a readily determinable fair value[363]. - Interest rate volatility remains a primary market risk, impacting both income and expense levels on assets and liabilities[703]. - The economic value of equity at risk increased from 18.3% at December 31, 2023, to 14.6% at June 30, 2024, under a +400 basis points scenario[705]. Invoice and Revenue - The total dollar value of invoices purchased by Triumph Financial Services during the three months ended June 30, 2024, was $2.542 billion, with an average invoice size of $1,775[360]. - The average transportation invoice size for the three months ended June 30, 2024, was $1,738, compared to $1,773 for the same period in 2023[360]. - Total interest income for the three months ended June 30, 2023, was $105,486 thousand, with Banking contributing $65,624 thousand, Factoring $36,368 thousand, and Payments $3,451 thousand[376]. - For the six months ended June 30, 2024, total interest income reached $208,962 thousand, with Banking at $130,894 thousand and Factoring at $67,059 thousand[377].

Financial Performance - Net income for the second quarter was $1.9 million, or $0.08 per diluted share[1] - Net income available to common stockholders decreased to $1,945,000, down 42.0% from $3,357,000 in the prior quarter[21] - Net income for the three months ended June 30, 2024, was $2,747 thousand, a decrease of 34.03% from $4,158 thousand in the previous quarter[66] - Basic earnings per common share for the quarter was $0.08, unchanged from the previous quarter[64] - Diluted earnings per common share for the three months ended June 30, 2024, was $0.08, down from $0.14 in the previous quarter[67] Revenue and Income Trends - Revenue stagnation is attributed to the longest freight recession in history, leading to increased expenses and missed consensus earnings estimates by approximately $3.3 million[2][5] - Non-interest income in the Payments segment grew by 5.6% quarter-over-quarter and 39.8% year-over-year, driven by fees from network transactions[23] - Total payment volume increased by 4.8% to $6,687,587,000, with broker clients contributing $6,379,680,000 of that total[24] - Network transactions increased by 13.0% compared to the previous quarter, reaching an all-time total of $5 billion in transactions[26] - Noninterest income for the three months ended June 30, 2024, was $17,167 thousand, up from $14,999 thousand in the previous quarter, marking a rise of 14.51%[79] Expenses and Cost Management - Total expenses for Q2 were $97.3 million, a 7.7% increase from Q1, with expectations to maintain expenses around $97 million for Q3[6][10] - Major drivers of expense increase included communications and technology ($2.4 million), salaries and benefits ($1.8 million), legal expenses ($1.1 million), and occupancy expenses ($0.9 million)[7] - TriumphPay's non-interest expenses rose to $17,800,000, an increase of 3.4% from the previous quarter[26] - Total noninterest expense for the three months ended June 30, 2024, was $97,343 thousand, compared to $90,371 thousand in the previous quarter, an increase of 7.09%[66] Asset and Capital Management - The company holds over $250 million in excess capital, providing confidence to continue investing despite market uncertainties[10] - Total assets increased to $5,783,334 thousand as of June 30, 2024, up from $5,575,493 thousand in the previous quarter, representing a growth of 3.73%[64] - Loans held for investment increased to $4,288,417 thousand as of June 30, 2024, compared to $4,195,120 thousand in the prior quarter, marking an increase of 2.21%[65] - Total stockholders' equity increased to $874,249 thousand as of June 30, 2024, from $872,339 thousand on March 31, 2024, a growth of 0.22%[65] Operational Efficiency - The efficiency ratio increased to 92.64% from 89.45% in the previous quarter, indicating a rise of 2.43%[64] - The return on average assets for the quarter was 0.19%, down from 0.31% in the previous quarter, reflecting a decrease of 38.71%[64] - The return on average total equity decreased to 1.26% from 1.90% in the prior quarter, a decline of 33.68%[64] Technology and Innovation - TriumphX, the technology organization, represents about 30% of the Corporate segment's spend and contributed to nearly 50% of the expense growth over the past several quarters[18] - Technology enhancements include upgrades to the proprietary factor management software, Delta, and the MyTriumph client portal[45][49] - The "instant purchase" AI-based decisioning model is currently in pilot phase with approximately 600 clients, expected to improve operational efficiency[50] Market Outlook - The company anticipates continued challenges in the freight market, with no significant changes in earnings outlook through year-end[54] - The company anticipates achieving 50% density in brokered freight by the end of this year, with current network engagement just under 47%[4][6] Client and Transaction Metrics - The average invoice paid by TriumphPay decreased by 1.2% in size, indicating a slight contraction in invoice amounts[24] - Number of invoices processed increased to 6,062,779 in Q2 2024, compared to 5,717,016 in Q1 2024, indicating a growth of 6.0%[74] - Average transportation invoice price decreased to $1,738, down 2% from Q2 2023 and 1.9% from Q1 2024[37]

The upcoming report from Triumph Financial (TFIN) is expected to reveal quarterly earnings of $0.21 per share, indicating a decline of 27.6% compared to the year-ago period. Analysts forecast revenues of $103.43 million, representing an increase of 0.5% year over year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 26.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Anal ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Triumph Financial (TFIN) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 17. ...

Triumph Financial, Inc. (NASDAQ:TFIN) is a financial holding company focused on payments, factoring and banking. Headquartered in Dallas, Texas, its diversified portfolio of brands includes TriumphPay, Triumph and TBK Bank. www.tfin.com DALLAS, May 31, 2024 (GLOBE NEWSWIRE) -- Triumph Financial, Inc. (the "Company") (NASDAQ:TFIN) today announced that the Company's Board of Directors declared a quarterly cash dividend of $17.81 per share on its 7.125% Series C Fixed-Rate Non-Cumulative Perpetual Preferred St ...

Financial Data and Key Metrics Changes - The company's earnings were reported to be weaker than historically, with expectations of continued pressure due to the ongoing freight recession [4] - There was credit noise in the quarter, but the company is proactively managing through it [4] - TriumphPay achieved $1 billion in transactions during the weakest quarter in freight history, marking a 40% growth over prior quarters [8] Business Line Data and Key Metrics Changes - TriumphPay's network transactions increased significantly, with over 600,000 transactions in the current quarter, representing 16% of total payment volume [56] - The company has a pipeline of $5 billion to $10 billion in additional volume expected to be added, which includes both audit and payment volume [17][34] Market Data and Key Metrics Changes - The freight market is experiencing significant headwinds, with a noted historic length of the current slowdown [30] - The average invoice amount for carriers has decreased from $2,500 to $1,800, indicating a low-double-digit decline in overall volume [30] Company Strategy and Development Direction - The company is focused on long-term growth opportunities, particularly in expanding TriumphPay's market share and enhancing network density [57] - Management emphasized the importance of creating value for customers before monetizing the network, aiming for a sustainable growth model [57][58] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the freight recession continuing into 2024, with expectations that a significant amount of capacity needs to leave the system for recovery [67][83] - The company is preparing to ride out the recession and is focused on maintaining a strong capital position to capitalize on future opportunities [82] Other Important Information - The company is not expecting to see a peak in deposit costs in the near term, with upward pressure anticipated as long as market rates remain high [33] - Management highlighted the importance of maintaining strong relationships with clients to navigate the current economic challenges [92] Q&A Session Summary Question: Can you provide insights on the incremental payment volume contracted for TriumphPay? - The company expects to add $5 billion to $10 billion in additional volume, which includes both audit and payment volume [17] Question: What are the long-term EBITDA margins expected for TriumphPay? - Management indicated that EBITDA margins could settle between 50% and 70% as the network matures and scales [27] Question: How is the company addressing the current challenges in the factoring business? - Management acknowledged the significant decline in the factoring business and noted that the current environment is the worst they have seen, but they are managing through it with a focus on maintaining strong relationships [30][82] Question: What is the outlook for the freight market and capacity? - Management believes that approximately 15% or more of capacity needs to leave the system for a recovery to occur, and they do not expect a quick resolution to the current challenges [83]

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: | --- | --- | --- | --- | --- | --- | --- ...

Exhibit 99.1 For the first quarter, we earned net income to common stockholders of $3.4 million, or $0.14 per diluted share. Here are a few of the most important things I believe investors should note. These include both thoughts about the quarter and thoughts about the future. • Earnings headwinds are real, but they are not forever. In our last letter, I addressed the two topics above. I also mentioned that we thought freight would be softer, interest rates would remain high, and credit would thus be affec ...