Triumph Financial : 2023 ESG Report

Staying the Course

2023 Environmental, Social

and Governance (ESG) Report

2023 ESG Report 1

Forward-looking Statements

This document contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward- looking statements by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will," "should," "seeks," "likely," "intends," "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; changes in management personnel; interest rate risk; concentration of our business in the transportation industry; credit risk associated with our loan portfolio; lack of seasoning in our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates; risks related to the integration of acquired businesses and any future acquisitions; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; our risk management strategies; environmental liability associated

with our lending activities; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us

or to which we become subject; changes in carry-forwards of net operating losses; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities, and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") and their application by our regulators; governmental monetary and fiscal policies; changes in the scope and cost of the Federal Deposit Insurance Corporation insurance and other coverages; failure to receive regulatory approval for future acquisitions; and increases in our capital requirements. While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward- looking statement to reflect events or circumstances after the

date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" and the forward- looking statement disclosure contained in Triumph Financial's Annual Reporton Form 10-K, filed with the Securities and Exchange Commission on February 13, 2024.

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Table of Contents

Message From Our CEO	4
The Company at a Glance	5
Triumph Financial at a Glance	5
Our Core Values	6
Relations With Stakeholders	6

Diversity & Inclusion	7
Our Creed	7
Our Belief	7
Council on Diversity & Inclusion 2023 Update	7
Anti-Discrimination	8
Anti-Harassment	8
Board and Leadership Diversity	8

Investing in Our Team Members	9
Training & Educational Assistance	9
Team Member Satisfaction	9
Labor Practices	9

Responsible Business	10
Enterprise Risk Management ("ERM")	10
Security Overview	10
Data Privacy & Security	11
External Standards and Information Security Efficacy	12
Anti-Money Laundering/Countering the Financing of
Terrorism and Office of Foreign Assets Control	12
Respecting Human Rights	13

Sustainability/Environment	14
Sustainable & Environmental Practices	14
Sustainable Lending and Community Reinvestment	15
Community Engagement & Development	17
The Mission Is More Than Money	17
Service	17
Non-profit/Charitable Initiatives	17
Current Major Charitable Initiatives	18
Triumph Financial Sustainability Accounting Standards
Board ("SASB") Indicators	19
Contact Triumph Financial	23
Investor Relations	23
Communication & Media Relations	23

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Message From Our CEO

Focus on the root, not the fruit.

I am pleased to present our annual ESG report to you and the rest of our stakeholders. Much of our success is tied to maintaining a proper alignment among these groups - our team members, customers, shareholders, regulators and the communities we serve. No one group can have the dominant voice in the room or we will stray from the path of long-term value creation.

With that balance in mind, I would like to share with you how we think about ESG. We approach it like we approach anything - focus on the root and the fruits will take care of themselves. The root of value creation is to build products that create value for our customers and do it within a culture of exceptional service. We accomplish those goals by developing a team that I would put up against any company twenty times our size. The fruit of that work shows up in a variety of ways, including our share price.

ESG should not be an exercise in virtue signaling. The virtue is the root that matters - the signal will take care of itself. Foundationally, we believe in the idea that we should treat all people the way we want to be treated and that we desire to leave the world better than we found it. This mission mindset, along with a collaborative culture, attracts people with good ideas. It attracts people who want to build something important and transform an industry. It attracts people who want to make an impact and who consider things beyond themselves. In sum, our culture is anchored around the concept of servant

leadership, and our focus on creating value helps our team members thrive, our customers succeed and our communities prosper.

With that framework in place, our board has decided that this report should remain straightforward. We simply report what we already do as a window into our culture. We endeavor to do so without embellishment or attempting to persuade you that we are anything other than a high-performing team. Our team works to provide equality in opportunity and access to capital while managing a sustainable and profitable enterprise. This is our work on behalf of all of our stakeholders.

As you read this year's report, I hope you are reminded that we are here to Help People Triumph!

Respectfully,

Aaron P. Graft

Vice Chairman and

Chief Executive Officer

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The Company at a Glance

Triumph Financial at a Glance

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. Our focus on creating value helps our team members thrive, our customers succeed and our communities prosper.

One Purpose: Helping People Triumph.

TBK Bank, SSB, meets the needs of clients through an offering of consumer, business and commercial banking products and solutions. With branches in Colorado, Illinois, Iowa, Kansas, New Mexico and Texas, TBK Bank serves clients nationwide through our mortgage warehouse and commercial real estate platforms.

Triumph provides the transportation industry access to more of the products and services that empower growth-minded entrepreneurs to expand their businesses. Triumph's total transportation finance solutions

• factoring, fuel cards, insurance, equipment finance and cash flow management - collectively create greater value for our clients.

TriumphPay is the payments network for freight brokers, factors, shippers and carriers in the North American trucking industry. TriumphPay provides digital, frictionless presentment, settlement and payment experiences, giving our partners the freedom to grow their businesses and empowering carriers to determine how and when they would like to receive payment.

Banking products and services offered by TBK Bank, SSB. Member FDIC.

Factoring products and services offered by Triumph Financial Services LLC, a subsidiary of TBK Bank, SSB, DBA Triumph.

Insurance products and services offered through Triumph Insurance Group, Inc., a subsidiary of TBK Bank, SSB DBA Triumph.

Triumph Insurance Group, Inc., DBA in CA Triumph Risk and Insurance Solutions, All Rights Reserved.| TX License #1941647

• Insurance Products and Services offered through Triumph Insurance Group, Inc. are NOT A DEPOSIT, NOT FDIC INSURED, NOT GUARANTEED BY THE BANK, NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY AND MAY GO DOWN IN VALUE.

Equipment Finance and Asset Based Lending products and services offered by TBK Bank, SSB.

TriumphPay is a division of TBK Bank, SSB.

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Our Core Values

We base our core values on biblical principles and sound business practices.

Transparency

Mission Is More Than Money

Communicate the truth consistently, directly and professionally. Open communication is the foundation of strong relationships.

Make everything you're involved in better. This includes doing good in the areas of greatest need - in your community and around the world.

Respect

Treat others as you want to be treated. Put the needs of others and the needs of the team before promoting your own agenda.

People Make the Difference

In any situation, the most important criteria for success are the quality of people and the quality of their thinking.

Invest for the Future

Do not allow the immediate to crowd out the important. Success that endures is built upon a long-term perspective.

Humility

Model humility in all that you do. Humility is not passivity, as it requires the courage to prefer others' needs over your own.

Unique Is Good

Be wary of following the crowd. Being unique can be difficult, but if it were easy, everyone would do it.

Relations With Stakeholders

Triumph Financial endeavors to engage all stakeholders - shareholders, team members, customers and our communities - transparently and respectfully. Our goal is to understand their concerns and identify emerging trends that may affect operations, team member health and welfare, and shareholder value. We work to identify potential risks that we can mitigate through our programs or policies. We employ several intake points for issues, including Human Resources, Investor Relations and Corporate Communication.

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Diversity & Inclusion

We are committed to providing equal employment and advancement opportunities to qualified individuals and will not tolerate illegal discrimination or harassment of any kind.

Our Creed

At Triumph Financial, we are committed to diversity, equity and inclusion ("DEI"). Building a better tomorrow includes operating to deliver excellent results today, while celebrating the uniqueness of our team members, customers, partners and communities as we promote a culture of understanding and acceptance. We dedicate ourselves to creating an environment where we value and listen to everyone with humility, and we act with respect regardless of gender, race, creed, orientation and background. An important way that we invest in our future is by building a team of diverse individuals at every level of business or relationship.

Our Belief

The diversity of Triumph Financial team members is a tremendous asset. We are committed to providing equal employment and advancement opportunities to qualified individuals and will not tolerate illegal discrimination or harassment of any kind. Team members are expected to immediately report any discrimination or harassment to the appropriate supervisor and Human Resources.

In August 2020, our CEO directed the formation of the CEO's Council on Diversity & Inclusion ("The Council") at Triumph Financial. Members represent all levels of the organization and the Council focuses on diversity and inclusion in our workforce, workplace, community and suppliers. They are responsible for connecting our diversity and inclusion activities with our broader business strategies. Additionally, we created a Leader of Diversity & Inclusion position to provide direction and leadership as we build processes and initiatives aimed at diversity and inclusion.

Council on Diversity & Inclusion 2023 Update

The Council's main objectives in 2023 were:

• CIRCA Diversity Job Boards: In partnership with Talent Acquisition, established relationship with CIRCA to post vacant job positions on job boards, to include nine (9) niche DEI job boards. This partnership expands our applicant pool across a more diverse population of qualified applicants.
• Promoted Diversity Creed Presence Across Triumph Financial: Displayed our Creed across all brands, departments and branches, including common areas visited by our customers.
• Implement Triumph "Quarterly" Champion Program: A Triumph- wide initiative, the goal of the Triumph Champion Program
  is to promote diversity, equity, inclusion and team member engagement across all brands and the communities we serve by fostering interpersonal relationships that are built on fairness and demonstrating to team members, customers and the community they are accepted, respected and valued.
• Ethnic and Commemorative Observances: Commemorated the life achievements of minorities by posting celebratory messages in #OneTeam Today, our internal intranet, to honor Black History Month, Women's History Month, Asian-PacificIslander Heritage
  Month, Hispanic Heritage Month, Native American (Indigenous
  People) Heritage Month, Juneteenth, etc.

The Council partnered with the Diversity & Inclusion Center of Excellence to establish placement opportunities at the executive, mid-management and sales levels for underrepresentation across gender and ethnicity. The Diversity & Inclusion Center of Excellence is a center of excellence within our Human Resource function, responsible for establishing diversity and inclusion goals at every level of the organization and creating the strategic plans to achieve them, including such elements as Triumph Financial's affirmative action plans, discussed more in our priorities for 2024. The Compensation Committee has oversight of this function and receives updates on diversity and inclusion initiatives and progress.

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The Council will leverage this positive momentum to execute the 2024 priority initiatives below.

• Expansion of Affirmative Action Plans (AAPs): In partnership

with Total Rewards and Talent Acquisition functions, assess

representation/underrepresentation across new hires, promotions,

terminations, transfers, etc., and identify areas and action planning

for improvement.

• Team Member Engagement Survey (Action Planning): The

Council will continue to leverage the Gallup Q12 survey and/

or SWOT Analysis processes to identify trending concerns that

could impact our working culture regarding representation,

fairness and teamwork.

• Administer Triumph Champion Program: Nominate deserving

team members on a quarterly basis who embody the spirit and

conviction of the program, and allow their impact and influence to

be highlighted and celebrated across the organization.

• Administer Selection Process for CEO Council on Diversity &

Inclusion: Annually, administer process to select new members to

the CEO Council on Diversity & Inclusion. In an effort to maintain

creative ideas to support a healthy DEI and engaged culture, 100%

of the current council members will be replaced. Council members

serve a 12- to-18-month term.

• Ethnic and Commemorative Observances: Continue to

commemorate the life achievements of minorities, by finding

ways to highlight their contributions to our world, our country

and our communities. In addition, The Council will continue to

serve as a resource and sounding board for corporate matters,

advocating for reasonable accommodations based on customer

needs and preferences.

• Community Development: In partnership with Triumph Workshop

("Makerspace") and the Philanthropy Department, volunteer

to serve underrepresented communities through the nonprofit

partners we have committed to serve as part of our four

Philanthropic Areas of Focus: Advocating for Safety & Justice,

charge every team member with the responsibility of adhering to our anti-discrimination policy and to not tolerate illegal discrimination. Our fundamental guiding principle is to treat others the way each of us wants to be treated, with dignity, respect and kindness. As a result, it is our desire to implement practices across our enterprise that encourage and respect the dignity of all of our team members and customers. Further, we believe it is the duty and responsibility of each team member to report conduct they believe violates this policy to their supervisor or the Human Resources Department. As a measure of visibility for management to our team members, Triumph Financial publishes demographic data by region to our internal intranet, allowing team members to see various demographic slices of Triumph Financial compared to those specific areas they serve.

Anti-Harassment

Triumph Financial takes the anti-discrimination policy one step further, stating the Company will not tolerate any form of harassment of team members, whether imposed by a team member, independent contractor, vendor, customer or visitor. This policy is intended to be interpreted as broadly as possible. While an action may not be so severe as to constitute harassment in the legal sense, it is commonly understood to be abusive or disrespectful towards others.

Board and Leadership Diversity

We are proud of the diversity of our leadership team. Our Board of Directors ("Board") consists of 11 members - nine of whom are independent; three of our board members are women and two are minorities. We also strive for diversity throughout the rest of our organizational structure.

As of December 31, 2023, women represent:

63%		65%		64%		33%
of our overall		of our non-		of our		of management,
team members		management		management		senior vice
		team members		structure through		president and
				vice president		above

Supporting Families, Providing Access to Basic Needs and

Transforming Communities.

The Council will continue to be a voice to advocate for equitable representation across our brands and work with the Diversity & Inclusion Center of Excellence on related affirmative action plans. Triumph Financial is particularly aware that some issues are more

As of December 31, 2023, ethnic minorities represent:

43%		34%
of our overall		of our non-
team members		management
		team members

33%

of our management structure through vice president

11%

of management, senior vice president and above

pressing than others and that some groups are more vulnerable than others - for example, women and equal pay. We actively work to be a positive force to rectify such inequalities.

Anti-Discrimination

Triumph Financial complies with all local, state and federal laws and regulations prohibiting discrimination in all personnel activities. We

As of December 31, 2023, Triumph Financial's age-related demographics were:

56%		44%
of our team		of our non-
members were		management
40 years of age		team members
or younger		were 41 years of
		age and older

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Investing in Our Team Members

Our success at Triumph Financial directly reflects our ability to attract, develop and retain the best, most diverse and highest-performing talent. To do this, we make substantial investments in our team members, providing them with opportunities to learn, develop and advance their careers. We believe in fostering a strong culture based on our core values, which creates an impact at work, generates long-term value for our stakeholders and makes lasting contributions to our communities.

Training & Educational Assistance

Triumph Financial and all subsidiaries support team members who want to continue their education in subjects and fields directly related to the Company's operations, activities and objectives. We encourage our team members to pursue educational opportunities that will help improve job performance and professional development. We reimburse tuition and specific fees for satisfactory completion of approved academic courses and certain certifications to further this goal. College credit courses at accredited colleges and universities, continuing education courses and certification exams are included. Triumph Financial must approve all courses and certifications before enrollment to be eligible for reimbursement. Team members are encouraged to contact the Human Resources Department for details, registration and to learn about the approval process.

Team Member Satisfaction

Triumph Financial partners with Gallup to gauge employee engagement and solicit feedback from team members on ways management can improve team members' working environment and overall team member engagement. Management has specific goals developed through these surveys to improve the work environment and team member engagement continually.

Labor Practices

We strive to ensure our team members have access to working conditions that provide a safe and healthy environment, free from work-related injuries and illnesses. Our locations require employee badges and keypads to enter restricted areas. Triumph Financial also employs a security team to track and remediate vulnerabilities in our physical, transactional and team member security. We encourage team members to raise concerns about actual or suspected misconduct through management or via a self-service platform called AskHR. Triumph Financial provides comprehensive medical, dental and vision plans, health savings accounts, PTO and sick time, long¬term disability, term life, dependent life, AD&D insurance, childcare and dependent care programs, flexible spending accounts, FMLA, 401K, employee assistance, wellness programs, Awardco YouEarnedit recognition (an internal points- and prize-based peer recognition program) and an employee stock purchase program, which currently boasts participation from 33% of our team members.

We are committed to providing our team members with applicable rights and certain freedoms, such as good working conditions, open communication, reasonable job security, personal growth opportunities, training and education, and communication of job expectations.

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Responsible Business

Triumph Financial's commitment to sound business practices is fundamental to our success. We strive to exemplify our core values in our daily interactions with customers and work to maintain high standards of ethics and accountability in our Board, leadership and team members.

Our day-to-day operations closely link to our corporate responsibility efforts by focusing on ethics and good governance. As part of delivering on that purpose responsibly, we understand the importance of managing risk effectively. Sound business practices are ethical business practices that guide us and enable responsible, sustainable growth. We accomplish this through effective internal controls, our code of business conduct and ethics, and robust data protection practices.

Enterprise Risk Management ("ERM")

The Board of Directors of Triumph Financial, Inc. maintains a standing Risk and Compliance Committee to oversee the assessment of risk across the Company and its subsidiaries. The committee's function is to provide an enterprise-wide review and evaluation of a broad range of risks, including environmental and social risks and risk trends impacting, or potentially impacting, Triumph and our stakeholders.

Security Overview

We have invested heavily in creating an enterprise-wide Information Security program that is composed of people, process and technology controls and capabilities to address threats faced by the organization. The Information Security program is led by a Chief Information Security Office ("CISO"), who manages security tools and processes and partners with other stakeholders in the organization to drive Information Security maturity across the organization. Our Information Security program is developed based on well-known frameworks and best practices. We also have a Corporate Security Officer ("CSO") role to focus on fraud prevention and investigations, physical and personnel security enhancements, and enterprise-wide information and data protection as the core of its vision and strategy. Regarding fraud prevention, security has been integral in reviewing threats from external fraud-related schemes affecting all enterprise business lines

by educating Triumph Financial personnel on existing complex fraud- related schemes undertaken by national and international criminal organizations or individual perpetrators.

Corporate Security has assisted in developing and refining fraud investigative procedures, standards and resources to ensure financial crime investigations are conducted in a timely and effective manner. The CSO also helps raise awareness across all business lines of the necessity to be vigilant against both external and internal fraud risks. The CSO continues to liaison with other financial institutions and local and federal law enforcement agencies in order to stay proactive in the identification of financial crime trends potentially impacting all enterprise lines of business.

The CSO undertakes efforts to remain abreast of physical security needs of each business line and provides physical security training to personnel. These efforts include identifying and implementing any required security upgrades necessary to ensure the protection of our personnel, facilities and both proprietary and customer data. Additionally, the CSO maintains a partnership with the CISO in order to identify and isolate potential cyber-related threats.

The threat of ransomware attacks, business email compromises and network intrusions by criminal organizations and nation states against financial institutions has been increasing. The CSO and CISO work in partnership to identify and isolate potential cyber- related threats. This brings increased visibility and understanding of domestic and international cyber threat actors, including their tools, techniques and patterns used against domestic and international financial sectors, and enhances our incident response efforts to cyber-related matters. The Information Security Office has also implemented a Security Awareness training program to educate all users on cyber-related threats.

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