Overview of Triumph Financial, Inc.

Triumph Financial, Inc. is a financial holding company headquartered in Dallas, Texas that offers a diverse range of banking, factoring, payments, and data intelligence services. The company’s principal subsidiary is TBK Bank, SSB, a Texas state savings bank through which it provides the majority of its products and services.

As of September 30, 2025, Triumph Financial had $6.357 billion in total assets, $4.987 billion in total loans, $4.955 billion in total deposits, and $919.3 million in total stockholders’ equity. The company’s business is primarily focused on providing financial services to participants in the for-hire trucking ecosystem in the United States, including brokers, shippers, factors, and carriers.

Third Quarter 2025 Overview

For the three months ended September 30, 2025, Triumph Financial reported net income available to common stockholders of $0.9 million, or $0.04 per diluted share, compared to $4.5 million, or $0.19 per diluted share, for the same period in 2024. The company’s return on average common equity was 0.41% and its return on average assets was 0.11% for the quarter.

Total assets increased $408.2 million, or 6.9%, to $6.357 billion as of September 30, 2025, compared to $5.949 billion at December 31, 2024. This was driven by a $440.0 million, or 9.7%, increase in total loans held for investment. Banking loans increased 6.6%, factoring receivables increased 15.6%, and payments factored receivables increased 34.4%.

Total liabilities increased $379.8 million, or 7.5%, to $5.438 billion as of September 30, 2025, primarily due to a $134.4 million, or 2.8%, increase in total deposits. Capital ratios remained strong, with Tier 1 capital and total capital to risk-weighted assets ratios of 10.20% and 12.09%, respectively, at September 30, 2025.

The factoring segment purchased $2.998 billion in invoices during the third quarter of 2025, with an average invoice size of $1,727. The payments segment processed 8.8 million invoices totaling $10.662 billion in the third quarter.

2025 Items of Note

Triumph Financial announced a 5% reduction in its workforce and other cost-saving initiatives in August 2025 as part of efforts to rebalance its cost structure in light of technology investments that have increased efficiency. The company recognized $3.1 million in severance and other one-time costs related to the restructuring during the third quarter.

In May 2025, the company acquired Greenscreens AI, Inc., a provider of pricing solutions and market intelligence for the logistics industry, for $151.8 million.

Triumph Financial also reached a $47.5 million settlement with the United States Postal Service (USPS) in June 2025 related to a dispute over misdirected payments. The settlement proceeds were used to relieve a $19.4 million receivable, recover previously charged-off advances, and provide a $12.4 million positive impact to pre-tax net income.

2024 Items of Note

In December 2024, Triumph Financial acquired the assets of Isometric Technologies Inc., a freight technology company that provides service and performance scoring and benchmarking capabilities to the trucking industry, for $10.0 million.

The company also purchased a building in Dallas, Texas in March 2024 that will serve as its new headquarters, at a total cost of $54.6 million.

Trucking Transportation and Factoring

The performance of Triumph Financial’s factoring and payments segments is heavily influenced by conditions in the trucking and freight transportation markets, particularly the spot market. Softness in freight volumes and excess capacity in 2023-2025 has led to decreases in average invoice prices and equipment prices, putting pressure on the company’s factoring revenue and equipment finance borrowers.

Though the transportation factoring industry continues to face headwinds, Triumph Financial believes it has sufficient access to capital and the ability to diversify its transportation and factoring income. The company plans to focus on managed growth in factoring with a greater emphasis on enhancing efficiency and profitability through technology initiatives.

Financial Highlights

For the three months ended September 30, 2025, Triumph Financial reported:

• Net interest income of $87.8 million, down 1.0% from $88.7 million in Q3 2024
• Credit loss expense of $4.3 million, up slightly from $4.3 million in Q3 2024
• Noninterest income of $21.4 million, up 22.6% from $17.5 million in Q3 2024
• Noninterest expense of $103.7 million, up 8.4% from $95.6 million in Q3 2024
• Net income available to common stockholders of $0.9 million, down 80.0% from $4.5 million in Q3 2024

The decrease in net income was primarily driven by higher noninterest expenses, including $3.1 million in restructuring costs, and a slight decline in net interest income.

Segment Results

Triumph Financial’s reportable segments are Banking, Factoring, Payments, and Intelligence.

Banking Segment

• Net income decreased 6.9% to $27.1 million, driven by a 3.6% decline in interest income and a 14.2% increase in interest expense
• Credit loss expense decreased 46.9% to $2.0 million
• Noninterest income increased 11.0% to $8.4 million

Factoring Segment

• Net income increased 3.1% to $8.2 million
• Net interest income increased 7.5% to $27.6 million
• Credit loss expense increased significantly to $2.3 million from $0.3 million in Q3 2024
• Noninterest income decreased 27.0% to $1.6 million

Payments Segment

• Moved from a $2.6 million loss to a $0.5 million profit
• Net interest income increased 17.6% to $9.7 million
• Noninterest income increased 33.9% to $8.5 million
• Processed 8.8 million invoices totaling $10.7 billion, up from 6.3 million invoices and $7.1 billion in Q3 2024

Intelligence Segment

• Reported a $3.6 million operating loss in its first full quarter of operations
• Segment expenses were primarily for salaries and intangible asset amortization

Outlook

Triumph Financial remains focused on providing financial services to the for-hire trucking ecosystem in the United States. The company believes it has sufficient access to capital and the ability to diversify its transportation and factoring income to navigate the current challenges in the trucking and freight markets.

The company’s strategic priorities include managed growth in its factoring business with a greater emphasis on efficiency and profitability, continued investment in technology to drive operational improvements, and the development of its data intelligence offerings to provide valuable insights to customers.

Overall, Triumph Financial is working to strengthen its competitive position, enhance operational agility, and support sustainable long-term growth amid the evolving dynamics in the transportation and logistics industry.