Financial Performance - For the six months ended June 30, 2025, net income available to common stockholders was $2.8 million, or $0.12 per diluted share, compared to $5.3 million, or $0.22 per diluted share for the same period in 2024[239]. - Net income available to common stockholders for the three months ended June 30, 2025, was $3,618 thousand, compared to $1,945 thousand in 2024, reflecting an increase of 85.9%[255]. - Net income for the three months ended June 30, 2025, was $4.4 million, an increase of $1.7 million or 60.9% compared to $2.7 million in the same period of 2024[260]. - Net income for the six months ended June 30, 2025, was $4.4 million, a decrease of $2.5 million or 35.7% compared to $6.9 million for the same period in 2024[325]. - The company reported a net income before income tax expense of $68.382 million for the six months ended June 30, 2025[366]. Assets and Loans - As of June 30, 2025, the company had total assets of $6.495 billion, total loans held for investment of $4.953 billion, and total deposits of $5.186 billion[229]. - Total assets increased to $6,494,748 thousand as of June 30, 2025, up from $5,948,975 thousand at the end of 2024[256]. - Total loans held for investment increased by $406.2 million during the six months ended June 30, 2025, with Banking loans increasing by 6.3% and Factoring receivables increasing by 13.7%[240]. - Loans held for investment rose to $4.953 billion at June 30, 2025, an increase of 8.9% from $4.547 billion at December 31, 2024[395]. - The aggregate outstanding balances of banking products increased by $208.9 million, or 6.3%, to $3.549 billion as of June 30, 2025[375]. Income and Expenses - Noninterest income for the six months ended June 30, 2025, was $36,574 thousand, an increase from $32,166 thousand in 2024[255]. - Noninterest income increased by $2.2 million, or 12.9%, reaching $19.4 million for the three months ended June 30, 2025[261]. - Total noninterest expense rose by $3.5 million, or 3.6%, to $100.840 million, with salaries and employee benefits increasing by $3.9 million, or 6.9%[284]. - Total noninterest expense increased to $142.204 million, with significant increases in other noninterest expenses by $5.4 million, or 48.2%[357]. - Noninterest income totaled $34.896 million, with the Payments segment contributing $14.255 million and the Intelligence segment contributing $2.119 million[366]. Credit Quality - The past due to total loans ratio improved to 2.21% as of June 30, 2025, down from 3.27% at the end of 2024[256]. - Credit loss expense showed a significant improvement, with a benefit of $702, compared to an expense of $4.2 million in the prior year, reflecting a change of 116.9%[261][274]. - Total credit loss expense decreased by $4.9 million, or 116.9%, to $(702) thousand for the three months ended June 30, 2025, compared to $4,155 thousand in the same period of 2024[275]. - Credit loss expense on loans decreased by $8.2 million, or 91.1%, to $798 thousand for the six months ended June 30, 2025 compared to $8.977 million in the same period of 2024[343]. - Nonperforming loans decreased by $55.8 million, or 49.2%, due to various payoffs and decreases in nonperforming relationships[412]. Segment Performance - The Banking segment generated 59% of total segment revenue, while the Factoring segment contributed 30%, Payments segment 10%, and Intelligence segment 1% for the six months ended June 30, 2025[237]. - The Payments segment processed 8.5 million invoices, paying Carriers a total of $10.081 billion during the three months ended June 30, 2025, compared to $6.688 billion for 6.1 million invoices in the same period a year ago[244]. - The Factoring segment's operating income increased by $15.1 million, or 326.9%, to $19.8 million in Q2 2025[308]. - Noninterest income in the Payments segment increased by $2.845 million, or 24.9%, to $14.255 million[384]. - The Payments segment's revenue is derived from transaction fees and interest income on factored receivables, indicating a focus on liquidity options for Brokers[356]. Acquisitions and Investments - The company acquired Greenscreens AI, Inc. for $139.1 million in cash and $12.7 million in common stock on May 8, 2025[245]. - The acquisition of HubTran in 2021 was a significant turning point, shifting the focus to an open-loop payments network for the trucking industry, enhancing fee revenue[390]. - The company launched its Intelligence business in Q4 2024, focusing on actionable insights for the trucking industry, coinciding with the acquisition of Isometric Technologies[235]. - The company acquired a $23.4 million nonperforming equipment finance commercial loan for $3.3 million, establishing a $10.8 million ACL on Day 1[279]. - The company recognized a benefit to credit loss expense of $0.1 million during the current quarter, compared to $27 thousand in the same period a year ago[277]. Tax and Regulatory - The effective tax rate increased to 44% for the three months ended June 30, 2025, compared to 23% for the same period in 2024, influenced by higher state tax rates and disallowed expenses[287]. - The effective tax rate increased to 44% for the six months ended June 30, 2025, compared to 17% for the same period in 2024, influenced by limited stock-based compensation deductibility and higher state tax rates[355].
TRIUMPH FINCL(TFINP) - 2025 Q2 - Quarterly Report