Triumph Financial(TFIN) - 2024 Q4 - Annual Results

Financial Performance - For Q4 2024, the company reported a net income of $3.0 million, or$ 0.13 per diluted share, and a full-year net income of $12.9 million, or$ 0.54 per diluted share[1]. - The company reported a net income to common stockholders of $3.04 million for Q4 2024, down from$ 4.55 million in Q3 2024[66]. - Net income available to common stockholders for Q4 2024 was $3,036, compared to$ 4,546 in Q3 2024, a decrease of 33.14%[80]. - The company anticipates Q1 earnings may be lower than the previous quarter, with many discussed initiatives not generating revenue until later in the year[53]. - Basic earnings per common share for Q4 2024 was $0.13, down from$ 0.38 in the same quarter last year[62]. - Return on average assets decreased to 0.26% for the quarter, down from 0.70% a year ago[62]. - Return on average total equity was 1.70%, down from 4.40% in the previous year[62]. - Net income for the quarter was $3,838 thousand, a decrease of 28.1% compared to$ 5,347 thousand in the previous quarter[65]. Market and Growth Initiatives - The company managed to touch over 50% of all brokered freight transactions, equating to a $110 billion addressable truckload market, and expects to surpass$ 100 billion in payments through TriumphPay in Q1 2025[2]. - The company plans to roll out additional products in 2025 to strengthen its network, despite current market challenges[5]. - TriumphPay's annualized network engagement reached approximately $53.6 billion, representing 48.7% of the estimated$ 110 billion truckload brokered market[31]. - The Factoring-as-a-Service (FaaS) offering is a key growth strategy, with successful beta testing completed with the first partner, CHRW[42]. Expenses and Cost Management - Expenses in Q4 2024 were $97 million, which was better than the target, with a 2.5% decline from the previous quarter, primarily due to reduced compensation expenses[2]. - Projected operating expenses for Q1 2025 are approximately$ 99 million, reflecting growth to support strategic initiatives[52]. - Total noninterest expense was $93,275 thousand, down from$ 95,646 thousand in the previous quarter, indicating a reduction of 2.4%[65]. - Noninterest expenses for Q4 2024 totaled $93,275, slightly down from$ 95,646 in Q3 2024, a decrease of 2.45%[80]. Asset and Loan Management - Loans held for investment increased to $4.55 billion in Q4 2024, up from$ 4.33 billion in Q3 2024, while deposits rose to $4.82 billion[7]. - Total assets increased to$ 5,948,975 thousand as of December 31, 2024, up from $5,347,334 thousand a year earlier, representing a growth of 11.3%[62]. - Total loans held for investment increased to$ 4,546.96 million as of December 31, 2024, up 4.9% from $4,332.97 million in September 2024[67]. - Non-performing loans to total loans ratio was 2.49%, an increase from 1.65% in the previous year[62]. Segment Performance - The Factoring segment's operating margin in Q4 was 23.7%, with a long-term goal of achieving a consistent 40% operating margin[20]. - The Payments segment achieved an EBITDA margin of 8.6% in Q4, with noninterest income growing 1.4% quarter-over-quarter and 17.4% year-over-year[21]. - Triumph's Intelligence segment aims to turn data into actionable insights, enhancing efficiency and decision-making in the trucking industry[12]. - The acquisition of Isometric Technologies was completed, leading to the establishment of a new segment called Intelligence[2]. Revenue and Income Trends - The average yield on receivables decreased by 0.21% to 13.36%, while charge-offs were at 0.26%, consistent with historical trends[35]. - Noninterest income totaled$ 15,751 thousand, a decrease of 10.0% from $17,497 thousand in the previous quarter[65]. - Total revenue for the Payments segment reached$ 15,031,000 in December 2024, up 1.1% from $14,873,000 in September 2024[75]. - Factoring total revenue for the quarter was$ 38,212,000, an increase from $37,939,000 in the prior quarter[73]. Operational Metrics - The average transportation invoice price in Q4 was$ 1,767, reflecting a $14 decrease year-over-year but a$ 43 increase from Q3 2024[34]. - The Instant Decision model achieved a 74.8% pass rate for small carriers, with an average invoice approval time of nine seconds[45]. - The fuel program saved carriers approximately $3.5 million in 2024, with expectations to triple savings in the upcoming year[41]. - Network transactions decreased by 14.3% relative to Q3 but increased by 28.2% year-over-year, indicating a focus on growth despite recent challenges[23].