Financial Data and Key Metrics Changes - The headline earnings number reflects the challenges in the transportation market, but almost every metric reported improved in the transportation businesses, particularly in the Payments segment [5][6] - Revenue from transportation businesses is currently at $206 million, which must increase materially by year-end to sustain current investment levels [29] Business Line Data and Key Metrics Changes - The Payments segment showed significant improvement in key performance indicators (KPIs), indicating potential for revenue growth from existing clients [14][17] - The factoring segment generated $144 million in revenue, which is considered low, but there is an expectation for it to at least double as more clients are onboarded [40] Market Data and Key Metrics Changes - The company is experiencing strong headwinds in the freight market, but there are opportunities arising from large trucking companies returning to the factoring market due to difficulties in maintaining covenants [16] - The second quarter is expected to have significant noise due to potential closings and other factors, with clearer revenue visibility anticipated in the latter half of the year [18] Company Strategy and Development Direction - The company is focused on growing revenue profitably despite market conditions, emphasizing the importance of investments made to create durable value [6][7] - There is a strategic emphasis on monetizing the Payments segment and upgrading legacy contracts to capture additional revenue [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving credit quality and expects that credit will not be a significant concern in the latter half of the year, focusing instead on revenue growth [75] - The company acknowledges the economic uncertainties but believes it is well-positioned to navigate these challenges due to its understanding of its portfolio [70][74] Other Important Information - The company is in the process of closing the Green Screens acquisition, which is expected to enhance its data monetization capabilities [44][47] - Management believes that investing in Green Screens will deliver more long-term shareholder value than share buybacks at current prices [49] Q&A Session Summary Question: Revenue outlook and growth opportunities - Management discussed potential revenue growth from Load Pay and Green Screens, indicating that existing clients are expected to contribute to revenue growth as they upgrade services [12][17] Question: Conforming invoice volume and fee growth - Management clarified that fee growth in the Payments segment can occur independently of conforming invoice volume, as fees are charged based on the services provided [20][22] Question: Revenue split between first and second half of the year - Management indicated that the bulk of revenue growth is expected to come from payments and factoring, with a significant increase needed by year-end [29][30] Question: Financial opportunity from next-gen audit migration - Management stated that the next-gen audit migration is still in early stages, with significant opportunities expected to be captured over the next year [33] Question: Credit metrics and economic uncertainty - Management expressed optimism about credit quality improvements, noting that they have been proactive in addressing credit stress in their portfolio [68][70]

Financial Data and Key Metrics Changes - The headline earnings number reflects the challenges in the transportation market, but almost every metric reported improved in the transportation businesses, particularly in the Payments segment [5][6] - Revenue from transportation businesses is currently at $206 million, which needs to increase materially by the end of the year to sustain current investment levels [29] Business Line Data and Key Metrics Changes - The Payments segment showed significant improvement in key performance indicators (KPIs), indicating potential for revenue growth from existing customers [14][17] - The factoring segment generated $144 million in revenue during a low quarter, with expectations to at least double this revenue as more clients are onboarded [40] Market Data and Key Metrics Changes - The company is experiencing headwinds in the transportation market, but there are opportunities arising from large trucking companies returning to the factoring market due to financial pressures [16] - The uncertainty around tariffs is seen as a potential opportunity for growth in the factoring business [16] Company Strategy and Development Direction - The company aims to grow revenue profitably despite market conditions, emphasizing the importance of investments made to create durable value [6][7] - There is a strategic focus on monetizing the Payments segment and upgrading legacy contracts to capture additional revenue [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving credit quality and expects that credit will not be a significant concern in the latter half of the year [75] - The company is prepared for potential economic challenges, including tariffs and a deeper recession, but believes it has less exposure to the most affected sectors [70][72] Other Important Information - The integration of Green Screens is anticipated to provide significant financial benefits, although specific details are not yet available [44][47] - The company is prioritizing the delivery of its intelligence products, which are expected to meet a significant market demand [46][49] Q&A Session Summary Question: Revenue outlook and growth opportunities - Management discussed potential revenue growth from Load Pay and Green Screens, emphasizing the importance of existing customer relationships and the need to grow revenue throughout the year [12][17] Question: Conforming invoice volume and fee growth - Management clarified that fee growth in the Payments segment can occur independently of conforming invoice volume, indicating successful monetization strategies [20][22] Question: Revenue split between first and second half of the year - Management indicated that the bulk of revenue growth is expected to come from payments and factoring, with a significant increase needed by year-end [29][30] Question: Financial opportunity from next-gen audit migration - Management stated that the migration to next-gen audit is still in early stages, with significant opportunities expected to be captured over the next year [33] Question: Credit metrics and economic uncertainty - Management expressed optimism about credit quality improvements, citing past efforts and a thorough understanding of the loan portfolio [68][75]

Financial Performance - For the three months ended March 31, 2025, the company incurred a net loss of $0.8 million, or $(0.03) per diluted share, compared to a net income of $3.4 million, or $0.14 per diluted share for the same period in 2024[209]. - Net income for the three months ended March 31, 2025, was $17 thousand, a decrease of $4.2 million or 99.6% compared to $4.2 million for the same period in 2024[230]. - The effective tax rate for the three months ended March 31, 2025, was 76%, compared to 13% for the same period in 2024, influenced by the small pre-tax income figures[257]. - The company reported a net income before income tax expense of $70 for Q1 2025, a decrease from $4,767 in Q1 2024[266]. Assets and Liabilities - As of March 31, 2025, the company had consolidated total assets of $6.268 billion, total loans held for investment of $4.666 billion, and total deposits of $4.977 billion[200]. - Total assets increased to $6.27 billion from $5.95 billion, reflecting a growth of approximately 5.4%[226]. - The company's total liabilities increased by $316.4 million to $5.374 billion as of March 31, 2025, compared to $5.058 billion at December 31, 2024[330]. - Total deposits rose by $155.9 million or 3.2% to $4.976 billion as of March 31, 2025, primarily driven by increases in noninterest bearing demand deposits and brokered time deposits[331]. Loans and Credit Quality - Total loans held for investment increased by $119.3 million during the three months ended March 31, 2025, with Banking loans decreasing by 0.8% and Factoring receivables increasing by 11.0%[210]. - The average balance of Factoring factored receivables increased by $118.1 million, or 12.5%, contributing to the overall loan growth[238]. - The allowance for credit losses (ACL) on loans decreased by $4.5 million, or 11.0%, to $36.2 million at March 31, 2025, from $40.7 million at December 31, 2024[324]. - Nonperforming loans decreased by $16.6 million, or 14.7%, from December 31, 2024, to March 31, 2025, with total nonperforming loans at $96.7 million[313]. Income and Expenses - Interest income increased slightly to $102.27 million, up 0.3% from $101.95 million in the prior year[231]. - Net interest income decreased by 1.9% to $84.38 million from $86.04 million year-over-year[231]. - Noninterest income rose by 14.6% to $17.19 million compared to $15.00 million in the previous year[231]. - Total noninterest expense rose by $9.8 million, or 10.8%, to $100.17 million for the three months ended March 31, 2025, with notable increases in salaries and employee benefits, and professional fees[255]. Segment Performance - The Payments segment processed 7.2 million invoices, paying Carriers a total of $8.778 billion during the three months ended March 31, 2025, compared to 5.7 million invoices for $6.380 billion in the same period a year ago[214]. - The company’s Factoring segment generated 30% of total segment revenue for the three months ended March 31, 2025, while the Banking segment generated 60%[208]. - Total revenue for the Payments segment increased to $15.184 million in Q1 2025, up 15.7% from $13.126 million in Q1 2024[284]. - Noninterest income in the Banking segment increased by $0.5 million, or 8.1%, from $6.476 million in Q1 2024 to $7.003 million in Q1 2025[274]. Strategic Initiatives - The company announced the acquisition of GreenScreens AI, Inc. for $140 million in cash and approximately $20 million in common stock, expected to close in Q2 2025[215]. - The company plans to focus on technology initiatives to enhance efficiency and customer experience, including the integration of artificial intelligence[223]. - The company plans to focus on expanding its Payments and Intelligence segments in the upcoming quarters[265]. Market Conditions - The softness in freight markets has led to persistently low invoice prices, impacting revenue in the Factoring segment and increasing delinquencies in equipment finance[222]. - The company continues to forecast minimal change in national unemployment and some degradation in national retail sales and home price index over the next quarters[322]. Risk Management - The liquidity management process includes regular stress testing of the balance sheet to withstand unexpected liquidity shocks[346]. - The company emphasizes the origination of shorter duration and variable rate loans to mitigate exposure to interest rate increases[367].

Financial Performance - The company reported a net loss of $(0.8) million, or $(0.03) per diluted share, for Q1 2025, impacted by non-core expenses of nearly $3.0 million[1] - Revenue for the quarter was $15.18 million, reflecting a slight increase from $15.03 million in the previous quarter[25] - Net income available to common stockholders was $(784) thousand for the quarter ended March 31, 2025, a decrease from $3,036 thousand in the previous quarter[74] - The company reported a net income of $17 thousand for the three months ended March 31, 2025, a significant decrease from $3,838 thousand in the previous quarter[76] - For the three months ended March 31, 2025, the company reported a net loss of $784,000, resulting in a basic and diluted earnings per share of $(0.03) compared to $0.13 in the previous quarter[77] Revenue Segments - The factoring segment generates about $144 million in annualized revenue, with expectations to double this revenue as market conditions normalize[12] - The payments segment currently generates about $61 million in annualized revenue, with an EBITDA margin of (0.1)%, affected by non-core expenses of $1.1 million[16] - Total revenue for the Payments segment reached $15,184,000 for the quarter ended March 31, 2025, compared to $15,031,000 in the previous quarter, reflecting a slight increase of 1.0%[86] - Factoring total revenue for the three months ended March 31, 2025, was $35,961,000, down from $38,212,000 in the previous quarter, a decrease of about 5.3%[84] Growth Metrics - Network transactions increased by 26.8%, driven by integrations with major freight brokers, indicating strong growth in the core transaction[7] - The company is approximately 21% of the way to its long-term revenue goal of $1 billion in transportation revenue, with current annualized transportation revenues at about $206 million[7] - LoadPay accounts grew from 192 to 778 during the quarter, with expectations to reach between 5,000 and 10,000 accounts by year-end[37] - The company generated a revenue run rate of $60.7 million, with a compound annual growth rate (CAGR) of 35.6% over the last two years[32] Market Conditions - Contract rates decreased by 7% while spot rates declined by 5% in Q1 2025, reflecting a challenging market environment[20] - Payment volume increased by 15.1% quarter-over-quarter to $8.78 billion, and 37.6% year-over-year[25] - The average invoice price rose to $1,222, an 8.8% increase from the previous quarter[25] - Average daily purchases increased by 13.2% year-over-year to $44.39 million, up from $39.20 million[39] Operational Efficiency - The company aims to unify its brand to streamline customer engagement and eliminate confusion among its various service offerings[11] - EBITDA margin was impacted by non-core expenses, showing a decrease of 7.2% in the first quarter[34] - Total noninterest expense increased to $100,173 thousand for the three months ended March 31, 2025, up from $93,275 thousand in the previous quarter, marking an increase of 7.6%[76] - The net noninterest expense to average assets ratio was 5.61% in Q1 2025, compared to 5.17% in Q4 2024, suggesting a deterioration in cost efficiency[91] Credit Quality - Credit loss expenses decreased by $3.1 million, indicating improvement in credit metrics[66] - The current quarter charge-off rate was 0.11%, a decrease from 0.26% in the previous quarter, indicating improved credit quality[84] - Nonperforming loans to total loans improved by 42 basis points, and classified assets decreased by $61 million[66] - The allowance for credit losses decreased to $(36,229) thousand as of March 31, 2025, compared to $(40,714) thousand at December 31, 2024, indicating an improvement in credit quality[75] Asset Management - Total assets increased to $6,268,394 thousand as of March 31, 2025, up from $5,948,975 thousand at December 31, 2024, representing a growth of 5.4%[74] - Loans held for investment rose to $4,666,223 thousand, compared to $4,546,960 thousand at the end of 2024, marking an increase of 2.6%[74] - Total deposits rose to $4,976,750 thousand, an increase of 3.2% from $4,820,820 thousand at December 31, 2024[75] - Average total loans increased to $4,471,710 thousand in Q1 2025, up from $4,403,989 thousand in Q4 2024, representing a growth of 1.5%[90]

Financial Results - Triumph Financial, Inc. has released its first quarter 2025 financial results [1] - The financial results and shareholder letter are available on the Company's website [1] Conference Call - A conference call to review the financial results will be held on April 17, 2025, at 9:30 a.m. central time [1] - Investors can access the live video conference through a provided link or by dialing a specific phone number [2] Company Overview - Triumph Financial, Inc. is a financial holding company focused on payments, factoring, intelligence, and banking [3] - The company is headquartered in Dallas, Texas, and has a diversified portfolio of brands including TriumphPay, Triumph, TBK Bank, and LoadPay [3]

Group 1 - Triumph Financial, Inc. (Nasdaq: TFIN) will release its first quarter financial results and management commentary on April 16, 2025, after market close [1] - A conference call to review the financial results will take place on April 17, 2025, at 9:30 a.m. central time, led by Vice Chairman and CEO Aaron P. Graft and CFO Brad Voss [2] - The conference call will be accessible via a live video link and a dial-in option, with an archive available on the company's website afterward [3] Group 2 - Triumph Financial, Inc. is a financial holding company based in Dallas, Texas, focusing on payments, factoring, intelligence, and banking, with a diversified portfolio including TriumphPay, Triumph, TBK Bank, and LoadPay [4]

Core Insights - Triumph Financial, Inc. has announced key leadership appointments aimed at strengthening its organizational structure for long-term growth and innovation in the transportation and financial services industry [1][5]. Leadership Appointments - Kim Fisk has been appointed president of factoring, succeeding Tim Valdez, who will now serve as chairman of the factoring segment, providing strategic oversight [2]. - Todd Ritterbusch has expanded his role to president of payments and banking, bringing over 25 years of banking experience to lead these segments [3]. - David Vielehr has been named president of LoadPay, Triumph Financial's digital banking platform for the trucking industry, leveraging his extensive experience in financial technology [4]. Strategic Vision - The leadership changes reflect Triumph Financial's commitment to operational excellence and strategic growth, enhancing customer value and accelerating innovation in the transportation industry [5]. - The company aims to align its business segments effectively to deliver impactful solutions to its customers and shareholders [5]. Company Overview - Triumph Financial, Inc. is a financial holding company focused on payments, factoring, intelligence, and banking, with a diversified portfolio that includes TriumphPay, Triumph, TBK Bank, and LoadPay [6].

Core Viewpoint - Triumph Financial, Inc. has nominated Melissa McSherry for election to its Board of Directors, bringing extensive experience in financial services and technology to the company [1][4]. Company Overview - Triumph Financial, Inc. is a financial holding company focused on payments, factoring, intelligence, and banking, headquartered in Dallas, Texas [6]. Leadership and Experience - Melissa McSherry has 30 years of experience in financial services, artificial intelligence, big data, and software development, with a strong track record in revenue growth and strategic transformations [1][2]. - McSherry has held leadership roles at Anywhere Real Estate, Visa, and Capital One, contributing to business growth, technology innovation, and regulatory oversight [2][3]. Strategic Contributions - As COO at Anywhere Real Estate, McSherry led product development and technology innovations, enhancing customer experience and efficiency [3]. - At Visa, she drove over 20% annual revenue growth through advanced AI in fraud prevention [3]. - At Capital One, she played a key role in the acquisition of HSBC's U.S. credit card business and led machine learning initiatives for credit scoring [3]. Board's Perspective - The chairman of Triumph Financial emphasized that McSherry's experience in financial services and technology will be crucial for the company's evolution in the freight industry [3]. - The CEO highlighted her ability to drive innovation and large-scale business transformations, which aligns with Triumph's goals of broadening product offerings and delivering value through data insights [4]. Future Outlook - McSherry expressed enthusiasm for joining Triumph Financial, aligning her passion for data-driven strategies with the company's commitment to innovation in financial technology [4]. - The appointment of McSherry is part of Triumph Financial's strategy to strengthen its leadership team with industry experts focused on innovation and long-term growth [5].

Core Insights - Triumph Financial, Inc. has agreed to acquire Greenscreens.ai for a total of $160 million, consisting of $140 million in cash and $20 million in stock, aiming to enhance its pricing intelligence capabilities in the freight industry [1][3][4] Company Overview - Triumph Financial, Inc. is a financial holding company focused on payments, factoring, banking, and intelligence solutions, headquartered in Dallas, Texas [4] - Greenscreens.ai provides pricing solutions for the logistics industry, utilizing machine learning to deliver market pricing intelligence and business insights [2][5] Strategic Implications - The acquisition is part of Triumph's strategy to transform data into actionable intelligence for the freight industry, following its recent acquisition of Isometric Technologies [3] - The integration of Greenscreens.ai is expected to strengthen Triumph's ability to provide validated, high-quality data that enhances decision-making and operational efficiency [3] Financial Details - The acquisition is subject to customary closing conditions and regulatory approvals, with an expected completion date in the second quarter of 2025 [3][6]

Group 1 - Triumph Financial, Inc. will present at the Raymond James & Associates' 46th Annual Institutional Investors Conference on March 5, 2025, at 11:35 a.m. ET [1] - The presentation will be available via a live webcast, accessible through a direct link or the company's website [1] - Triumph Financial, Inc. is a financial holding company focused on payments, factoring, and banking, with a diversified portfolio including TriumphPay, Triumph, and TBK Bank [2]