Triumph Financial(TFIN) - 2025 Q1 - Quarterly Results

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]