Triumph Financial, Inc. (Triumph Financial or the Company) reported a net income of $12.9 million for the year ended December 31, 2024, a significant decrease from the $37.9 million reported in the prior year. The return on average common equity was 1.53%, and the return on average assets was 0.28%. Total assets increased to $5.949 billion, up from $5.347 billion in 2023, driven primarily by a $383.9 million increase in total loans. Total deposits also rose to $4.821 billion, an increase of $843.3 million.
The decrease in net income was largely attributed to a decline in net interest income, which fell by $17.6 million (4.8%) due to increased interest expense (up 32.6% to $72.1 million) and a rise in credit loss expense (up 53.8% to $18.8 million). Offsetting this decline was a 30.4% increase in noninterest income, reaching $65.4 million, primarily driven by growth in fee income and insurance commissions. Noninterest expense also increased by 6.6% to $376.6 million, mainly due to higher salaries and employee benefits, occupancy costs, and professional fees.
Significant developments during the year included the January 1, 2025 merger of Triumph Financial Services LLC (the Company's factoring operations) into TBK Bank, SSB. The Company also launched its Factoring as a Service (FaaS) product and its LoadPay digital bank account for carriers. Furthermore, Triumph Financial acquired Isometric Technologies Inc. for $10 million in cash, expanding its data intelligence offerings. TriumphPay, the Company's payments platform, processed 24.8 million invoices totaling $27.784 billion in 2024, compared to 19.5 million invoices and $21.518 billion in 2023.
The Company's loan portfolio saw growth in several areas, including Banking loans (up 9.6%), and Factoring factored receivables (up 9.7%), while Payments factored receivables decreased slightly (down 1.8%). The increase in nonperforming assets to 2.02% of total assets from 1.42% in 2023 was primarily due to increases in nonperforming equipment finance and multifamily relationships. The Company noted that a significant portion of its revenue (48%) and factored receivables (97%) are derived from the transportation industry, making it susceptible to economic conditions affecting that sector. The filing also highlighted various risk factors, including economic conditions, credit and interest rate risks, regulatory changes, and cybersecurity threats.
Triumph Financial stated that it does not intend to pay dividends in the foreseeable future, preferring to retain earnings to support growth and build capital. The company's outlook is contingent upon various factors, including economic conditions, the success of its new product lines, and the competitive landscape within the financial technology and transportation industries.
About Triumph Financial, Inc.
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