Triumph Financial(US:TFIN)2025-04-16 20:13Financial 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].