Triumph Financial, Inc., a Texas-based state commercial bank, has announced its intention to fully redeem its outstanding $39.5 million 4.875% Fixed-to-Floating Rate Subordinated Notes due 2029. The redemption is set for November 27, 2024, and will be conducted at a cash price equal to 100% of the principal amount of the Notes, plus any accrued and unpaid interest up to, but not including, the redemption date.
The decision for redemption was disclosed in a Form 8-K filed with the Securities and Exchange Commission today. This move by Triumph Financial, previously known as Triumph Bancorp (NASDAQ:TFIN), Inc., is in accordance with the terms laid out in the Indenture dated September 30, 2016, and supplemented on November 27, 2019, between the Company and Computershare Trust Company, N.A., successor to Wells Fargo Bank, National Association.
The notice provided by Triumph Financial does not constitute a notice of redemption for the Notes holders. The official notice of redemption will be delivered by the trustee to the registered holders of the Notes.
In other recent news, Triumph Financial reported its third-quarter earnings, highlighting a notable 30% year-over-year revenue growth for its TriumphPay platform, despite ongoing challenges in the freight market. The company launched TriumphPay with C.H. Robinson, expecting significant volume integration by the first quarter of 2025. Additionally, the introduction of the NextGen Audit product, aimed at enhancing invoice validation and processing times, was announced.
Despite a recent drop in network transactions, described as short-term noise, Triumph Financial anticipates network transaction growth in the fourth quarter of 2023 and throughout 2025. The company is also planning to roll out small dollar advances and other features for its LoadPay platform in 2025.
Furthermore, the company reported strong growth in non-interest-bearing deposits, particularly from mortgage warehouse servicing. These developments come amid the company's optimism for long-term recovery in the freight market, despite the current industry headwinds.
InvestingPro Insights
Triumph Financial's decision to redeem its $39.5 million subordinated notes aligns with its current financial position and market performance. According to InvestingPro data, the company boasts a market capitalization of $2.06 billion and has demonstrated strong financial performance over the past year. The stock has shown a remarkable 51.65% price total return over the last year, indicating investor confidence in the company's strategies.
InvestingPro Tips highlight that Triumph Financial has been profitable over the last twelve months, with analysts predicting continued profitability this year. This financial strength likely supports the company's decision to redeem its notes. However, it's worth noting that the company is trading at a high earnings multiple, with a P/E ratio of 109.51, suggesting investors have high growth expectations.
For readers interested in a deeper analysis, InvestingPro offers 12 additional tips for Triumph Financial, providing a more comprehensive view of the company's financial health and market position.
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