Triumph Financial(US:TFIN)2025-10-15 20:18Financial Performance - For the nine months ended September 30, 2025, net income available to common stockholders was $3.7 million, or $0.16 per diluted share, down from $9.8 million, or $0.42 per diluted share for the same period in 2024[242]. - Net income for the three months ended September 30, 2025, was $1.7 million, a decrease of $3.6 million or 68.1% compared to $5.3 million for the same period in 2024[268]. - Net income for the nine months ended September 30, 2025, was $6.1 million, a decrease of $6.2 million or 49.8% compared to $12.3 million for the same period in 2024[338]. Revenue and Income Segments - The Banking segment generated 58% of total segment revenue, while the Factoring segment contributed 30%, Payments segment 11%, and Intelligence segment 1% for the nine months ended September 30, 2025[240]. - Noninterest income for the three months ended September 30, 2025, was $21.4 million, up from $17.5 million in 2024, representing a 22.3% increase[263]. - Noninterest income increased by $3.951 million, or 22.6%, to $21.448 million compared to $17.497 million in the same period of 2024[274]. - Noninterest income rose by $8.4 million, or 16.8%, to $58.0 million compared to $49.7 million in 2024[339]. - Total revenue for the nine months ended September 30, 2025, was $50.918 million, an increase of 21.7% from $41.861 million in the same period of 2024[398]. Assets and Loans - As of September 30, 2025, the company had total assets of $6.357 billion, total loans held for investment of $4.987 billion, and total deposits of $4.955 billion[234]. - Total assets increased to $6,357.1 million as of September 30, 2025, compared to $5,948.975 million at the end of 2024[264]. - Total loans held for investment increased by $440 million during the nine months ended September 30, 2025, with Banking loans increasing by 6.6% to $3.559 billion[243][245]. - Gross loans as of September 30, 2025, were $4,986,922,000, compared to $5,150,806,000 at the end of 2024, indicating a reduction in loan volume[307]. - Loans held for investment increased to $4.987 billion, up from $4.547 billion at the end of 2024[409]. Expenses and Costs - The company recognized $3.1 million in expenses related to a reduction in force during the three months ended September 30, 2025[251]. - Noninterest expense rose by $8.068 million, or 8.4%, to $103.714 million from $95.646 million in the previous year[274]. - Noninterest expense increased by $21.4 million, or 7.5%, to $304.7 million, primarily due to higher salaries and benefits[339]. - Salaries and employee benefits increased by $4.7 million, or 8.6%, to $60.192 million for the three months ended September 30, 2025, which included $3.1 million of severance expenses[294]. Credit and Losses - Credit loss expense for the period was $4.284 million, a slight increase of $21, or 0.5%, from $4.263 million in the previous year[274]. - Credit loss expense on loans decreased by $0.9 million, or 17.9%, to $4.249 million for the three months ended September 30, 2025, compared to $5.174 million in the same period of 2024[283]. - The allowance for credit losses (ACL) on loans was $33.5 million as of September 30, 2025, down from $40.7 million as of December 31, 2024, representing a decrease in the ACL to total loans ratio from 0.90% to 0.67%[286]. - Total credit loss expense decreased by $9.4 million, or 65.7%, from $14.3 million in 2024 to $4.9 million in 2025[356]. Segment Performance - The Payments segment processed 8.8 million invoices, paying Carriers a total of $10.662 billion during the three months ended September 30, 2025, compared to 6.3 million invoices for $7.091 billion in the same period a year ago[249]. - The Factoring segment reported a net income before income tax expense of $27,075,000 for Q3 2025, compared to $29,074,000 in Q3 2024, reflecting a decline in profitability[306]. - Noninterest income in the Payments segment increased by $2.2 million, or 33.9%, to $8.462 million for the three months ended September 30, 2025, compared to $6.322 million in the same period a year ago[326]. - Operating income in the Factoring segment rose by $15.2 million, or 77.3%, compared to the same period in 2024[391]. Tax and Regulatory - The effective tax rate for the three months ended September 30, 2025, was (33)%, compared to 15% for the same period in 2024, influenced by lower pre-tax income and increased estimated research and development tax credits[296]. - The effective tax rate increased to 34% for the nine months ended September 30, 2025, compared to 16% in the same period of 2024[369]. Strategic Initiatives - The company plans to focus on technology initiatives, including artificial intelligence, to enhance efficiency and profitability in its factoring segment[261]. - The company acquired Greenscreens AI, Inc. for $139.1 million in cash and $12.7 million in common stock on May 8, 2025[252]. - The company launched a data intelligence segment in Q4 2024, enhancing its service offerings through acquisitions of Isometric Technologies Inc. and Greenscreens AI, Inc.[372].