Company Overview - Triumph Financial, Inc. (Nasdaq: TFIN) is a financial holding company focused on payments, factoring, and banking, headquartered in Dallas, Texas. The company's diversified portfolio includes TriumphPay, Triumph, and TBK Bank [4]. Upcoming Financial Results - Triumph Financial is set to release its fourth quarter financial results and management commentary after the market closes on January 22, 2025. The results will be available on the company's website [1]. - A conference call to review the financial results will take place on January 23, 2025, at 9:30 a.m. central time, led by Vice Chairman and CEO Aaron P. Graft and CFO Brad Voss [2]. Accessing Conference Call - Investors can access the live video conference through a provided link or via the company's website under News & Events. A dial-in option is also available for the conference call [3].

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].

Core Viewpoint - Triumph Financial, Inc. has appointed Mitchell Lee as the chief risk and compliance officer to enhance its enterprise risk management and compliance efforts across all divisions [1][2][3] Company Overview - Triumph Financial, Inc. is a financial holding company focused on payments, factoring, and banking, headquartered in Dallas, Texas, with a diversified portfolio including TriumphPay, Triumph, and TBK Bank [4] Appointment Details - Mitchell Lee will report directly to Ed Schreyer, the executive vice president and chief operating officer, overseeing the enterprise risk and compliance teams [2] - His role includes ensuring compliance with legal and regulatory requirements and integrating risk management into the company's strategic planning [2] Mitchell Lee's Background - Lee has extensive experience in risk management and compliance, having previously served as the chief risk and compliance officer at Synctera and as the director of fintech at the Federal Reserve Bank of San Francisco [3] - His expertise includes working with emerging financial technologies such as cryptocurrency and Banking-as-a-Service [3] Strategic Fit - Ed Schreyer emphasized that Lee's background aligns with Triumph Financial's strategic goals, particularly in driving innovation and ensuring regulatory excellence in the evolving fintech landscape [3] Lee's Perspective - Lee expressed enthusiasm for joining Triumph Financial, highlighting the company's forward-thinking approach and commitment to the trucking and financial services industry [4]

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 ...

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 ...