Triumph Financial(TFIN) - 2025 Q3 - Quarterly Results

CEO Letter to Shareholders Q3 Financial Performance Overview Q3 net income was $0.9 million and diluted EPS $0.04, including $4.4 million non-core restructuring expenses - Q3 net income was $0.9 million, with diluted EPS of $0.04[1] - Results included $4.4 million in non-core expenses, primarily from restructuring efforts[1] Strategic Execution & Efficiency Initiatives Q3 total expenses decreased by ~5% due to efficiency initiatives, with 90% of savings recurring by early Q4 - The company continues its investment cycle and network integration strategy, with benefits beginning to emerge[1] - Total expenses decreased by ~5% in Q3 through efficiency improvements, with 90% of savings expected to be recurring by early Q4[4] - Investments in AI tools have shown initial success, with plans to continue streamlining and enhancing efficiency into 2026[4] Capital Allocation & Credit Update The board authorized a $30 million share repurchase, and credit remains robust despite the Tricolor bankruptcy event - The board authorized a $30 million share repurchase program, believing the current stock price does not reflect the company's intrinsic value[5][7] - The company will maintain capital buffers above regulatory requirements and plans to use a portion of earnings for share repurchases[7] - Regarding the Tricolor bankruptcy, the company believes its $22.5 million loan is well-collateralized by vehicle inventory, requiring no specific loss reserves, and plans to reduce its non-transportation footprint[5][56] CEO Summary of Key Points Noninterest Expense Adjusted total noninterest expense decreased by 1.8% quarter-over-quarter to $99.3 million in Q3 due to efficiency gains Adjusted Noninterest Expense (in millions of dollars) | (in millions of dollars) | 2Q25 Adjusted | 3Q25 Adjusted | Adjusted QoQ Change ($) | Adjusted QoQ Change (%) | | :----------------------- | :------------ | :------------ | :---------------------- | :---------------------- | | Factoring | 19.5 | 18.0 | (1.5) | (7.7)% | | Payments | 16.8 | 16.6 | (0.2) | (1.2)% | | Intelligence | 4.7 | 5.7 | 1.0 | 21.3% | | Banking | 32.0 | 31.2 | (0.8) | (2.5)% | | Corporate | 28.1 | 27.8 | (0.3) | (1.1)% | | Total | 101.1 | 99.3 | (1.8) | (1.8)% | - Adjusted total noninterest expense decreased by 1.8% quarter-over-quarter to $99.3 million, primarily due to efficiency improvements[3][4] Transportation Revenue Growth & Outlook Q3 total transportation revenue grew 3.7% quarter-over-quarter, with Payments revenue up 7.4% and a positive pre-tax operating profit - Q3 Payments revenue grew 7.4% quarter-over-quarter, with EBITDA margin improving to 16.8% and achieving positive pre-tax operating profit for the first time[4] - Factoring revenue saw slight growth, with improved core operating margins, while Intelligence revenue remained flat[4] - Q3 total transportation revenue increased by 3.7% quarter-over-quarter, and the company anticipates 20% annual growth in transportation revenue[4] Expense Reduction & Margin Improvement Total expenses decreased by ~5% in Q3, with 90% of savings recurring by early Q4, and Q4 expenses projected at $96.5 million - Total expenses decreased by ~5% in Q3, with 90% of savings incorporated into recurring expenses by early Q4[4] - Q4 expenses are projected to be $96.5 million, 4.5% lower than Q2 adjusted figures[4] - Investments in AI tools have shown initial success, and the company will continue to integrate them into operations, with further efficiency gains planned for 2026[4] Credit Despite market volatility from the Tricolor bankruptcy, the company believes its collateral is well-secured and plans to reduce non-transportation lending - The Tricolor bankruptcy event caused market volatility, but the company believes its collateral remains well-secured[5] - The company's collateral differs from lenders likely to incur maximum losses, and it has diligently monitored the situation[5] - Non-transportation lending is not a core strategy, and the company expects to continue reducing its non-transportation footprint[5] Share Repurchase Announcement The board authorized a $30 million share repurchase program, believing the current stock price undervalues Triumph - The board authorized a $30 million share repurchase program[5] - The company believes the current stock price does not reflect Triumph's intrinsic value[5] - The company will maintain capital buffers above regulatory requirements and plans to use a portion of earnings for share repurchases when the stock price is near current levels[7] Our Strategy and The Harmony of a Customer-Centric Organization Integrated Value Chain & Competitive Advantage Triumph, a technology and payments provider in trucking, builds an integrated value chain to improve data strategy, payments, and working capital - Triumph is a technology and payments provider in the trucking industry, aiming to improve data strategy, payments, and working capital through an integrated value chain[8] - The company creates a unique competitive advantage through mutually reinforcing activities like audit, payments, liquidity solutions, digital banking, and intelligence services[8][9] - This integrated value chain is expected to drive sustainable revenue growth and margin expansion for shareholders[8] Core Activities Triumph's core activities include audit, payments, liquidity solutions, digital banking, and intelligence services, all designed to streamline freight transactions - Audit: Reduces invoice processing time and effort through automation and efficiency at scale - Payments: Enhances transaction confidence through efficient payments and fraud mitigation - Liquidity Solutions: Includes factoring, supply chain finance (SCF), FaaS, quick pay, and cash advances, converting freight receivables to cash, and equipment financing - Digital Banking+: Commercial bank accounts integrated with the company's network for seamless fund movement and integrated tools as a central back office for carriers - Intelligence: Data-driven fraud protection, pricing, capacity, and performance insights[12] Market Context & Future Focus The company built the sole financial network in brokered freight during a challenging cycle and will now focus on customer service, revenue growth, and margin expansion - The company successfully built the only financial network in brokered freight during the most challenging freight cycle since the 1980s[14] - Future focus will be on serving customers excellently, growing revenue, and expanding margins to create long-term shareholder value[14] - The company will continue to expand its network value and is committed to building a leaner enterprise[14] Segment Performance Payments Payments revenue grew 7.4% quarter-over-quarter to $18.5 million in Q3, with EBITDA margin improving to 16.8% and achieving positive pre-tax operating profit - Q3 Payments revenue grew 7.4% quarter-over-quarter to $18.5 million, with EBITDA margin improving to 16.8% and achieving positive pre-tax operating profit for the first time[15][16][86] Payments Key Operating Data | Metric | September 30, 2025 (3Q) | June 30, 2025 (2Q) | QoQ Change (%) | YoY Change (%) | | :----------------------- | :---------------------- | :----------------- | :------------- | :------------- | | Invoice Volume | 8,826,848 | 8,500,565 | 3.8% | 40.6% | | Payment Volume | $10,662,418,000 | $10,081,206,000 | 5.8% | 50.4% | | Network Invoice Volume | 1,057,606 | 1,004,603 | 5.3% | 59.8% | | Network Payment Volume | $1,696,817,000 | $1,579,662,000 | 7.4% | 59.6% | | Total Revenue | $18,503,000 | $17,231,000 | 7.4% | 24.4% | | LoadPay Accounts | 4,421 | 2,367 | 86.8% | 6701.5% | | EBITDA Margin | 16.8% | 13.9% | 2.9% | 3260.0% | Financial and Operational Performance_Payments - Q3 Payments revenue grew 7.4%, with EBITDA margin improving to 16.8% and achieving positive pre-tax operating profit for the first time[15] - Network payment volume increased by 59.6% year-over-year, reaching $1.697 billion[16] Pricing Changes & Revenue Growth Forecasts - Payments revenue growth was primarily driven by new customer additions, with pricing strategies expected to accelerate revenue growth in 2025 Q4 and 2026 Q1[16] - Fee revenue accounted for approximately 54% of this quarter's growth and is expected to continue leading growth, with the payment fee collection rate increasing from 28.5% to 30.8%[20] - The company estimates an additional $42 million in annual revenue if existing customers fully utilize audit functions and pay at standard pricing[23] LoadPay Update - 2,054 new LoadPay accounts were added in Q3, nearly doubling the total to 4,421[26] - LoadPay is expanding its capabilities, beginning to connect limited factoring capacity, and plans to introduce lane rate insights, savings goals, and cash advances to become a comprehensive financial partner for carriers[27] - The company reiterates LoadPay's addressable market is approximately $100 million[25] Additional Segment Financial Analysis_Payments - Payments revenue CAGR was approximately 27.8% over the past two years and 102% over the past six years, despite half of that period being in the longest trucking recession in history[28] Factoring Factoring's Q3 adjusted revenue grew 0.3% quarter-over-quarter, with pre-tax operating profit of $9.3 million and an adjusted pre-tax operating margin of 23.5% - Q3 Factoring adjusted revenue grew 0.3% quarter-over-quarter, with pre-tax operating profit of $9.3 million and an adjusted pre-tax operating margin of 23.5%[34] Factoring Key Operating Data | Metric | September 30, 2025 (3Q) | June 30, 2025 (2Q) | QoQ Change (%) | YoY Change (%) | | :--------------------- | :---------------------- | :----------------- | :------------- | :------------- | | Invoice Volume | 1,735,860 | 1,697,851 | 2.2% | 17.2% | | Purchased Volume | $2,997,895,000 | $2,873,659,000 | 4.3% | 14.9% | | Average Invoice Size | $1,690 | $1,663 | 1.6% | (2.0)% | | Discount Rate | 1.29% | 1.37% | (5.8)% | (7.9)% | | Operating Margin | 20.71% | 48.46% | (57.3)% | (1.3)% | Financial and Operational Performance_Factoring - Q3 Factoring adjusted revenue grew 0.3% quarter-over-quarter, with pre-tax operating profit of $9.3 million and an adjusted pre-tax operating margin of 23.5%[34] - Total purchased volume reached $3 billion, increasing 4.3% quarter-over-quarter and 14.9% year-over-year[38][39] - The average freight invoice price was $1,690, higher than Q2 but lower than the prior year period[34][39] Automation & AI Update - Automated cash posting was launched in Q3, improving finance department efficiency by approximately 20%[42] - An automated bill reminder system was introduced, with test results showing it can handle 10 times the number of invoices as before[43] - The instant decision model achieved a 58% pass rate in the O/O (owner-operator) segment, and the company is working to improve the model to support larger fleet operations[44] FaaS Update - Factoring-as-a-Service (FaaS) business is growing slowly and beginning to reach an adoption inflection point[46] - The company and its partners are committed to advancing FaaS technology to provide a more seamless, efficient, and intuitive customer experience, laying the groundwork for meaningful future growth[46] Intelligence Intelligence segment Q3 total revenue was $2.3 million, with an average contract value (ACV) of $43 thousand and a gross margin of 89% - Q3 Intelligence segment total revenue was $2.3 million, with an average contract value (ACV) of $43 thousand and a gross margin of 89%[47][87][88] - The company launched an integrated pricing and performance intelligence solution, combining Greenscreens.ai and the ISO platform, to provide AI-driven predictive analytics and capacity procurement recommendations for freight brokers[49] Financial and Operational Performance_Intelligence - Q3 Intelligence segment total revenue was $2.3 million, with an average contract value (ACV) of $43 thousand and a gross margin of 89%[47][87][88] Product Roadmap - The company launched an integrated pricing and performance intelligence solution, unifying pricing, performance, and capacity procurement, offering AI-driven predictive analytics and capacity procurement recommendations[49] - Plans include launching intelligence solutions for shippers in the second half of 2026, accumulating data through pilot programs[51] - Approximately 400 Payments network customers have not yet adopted Intelligence solutions, with more existing Payments customers expected to become Intelligence customers in 2026[49] Partnership with Highway on Trusted Freight Exchange - The company continues its partnership with Highway to power the Trusted Freight Exchange (TFX), a secure public freight platform alternative[52] - Within TFX, carriers can leverage the company's intelligence rate data for market rate ranges and understand payment terms for specific freight through the payments platform[53] Banking The Banking segment's Q3 operating income increased by $0.7 million to $27.1 million, a 2.7% quarter-over-quarter rise, driven by lower noninterest and credit loss expenses - Q3 Banking segment operating income increased by $0.7 million to $27.1 million, a 2.7% quarter-over-quarter increase[54] - Growth was primarily attributed to lower noninterest and credit loss expenses, with a slight increase in revenue[54] Financial and Operational Performance_Banking - Q3 Banking segment operating income increased by $0.7 million to $27.1 million, a 2.7% quarter-over-quarter increase[54] Credit Metrics Update - The Tricolor bankruptcy event led to a slight negative shift in credit metrics, but the company believes its loan portfolio is low-risk and well-collateralized[55][56][57] - Total non-performing loans as a percentage of total loans increased by 0.16% to 1.36% - Total classified assets increased by $8.2 million - Delinquent loans as a percentage of total loans improved by 0.30% to 1.91%[60] Freight Market Update State of the US Trucking Market The US trucking industry remains in a prolonged adjustment phase due to excess capacity, leading to stagnant rates and squeezed carrier profits - The US trucking industry is in a prolonged adjustment phase due to excess capacity from the post-pandemic boom, resulting in stagnant freight rates and pressure on carrier profits[58] - The FMCSA's temporary final ruling on non-domiciled Commercial Driver's Licenses (CDLs) is expected to remove approximately 200,000 non-domiciled CDL holders from the market over the next two years, potentially significantly impacting the for-hire freight market and restoring pricing power to small US carriers[61] - Small carriers have persisted longer than expected in the downturn due to lower operating costs and greater flexibility[34][37] Expense Forecast & Closing Thoughts Expense Forecast & Closing Thoughts_Summary Q3 saw non-recurring expenses from restructuring, but core expense run-rate is improving, with Q4 noninterest expenses projected at $96.5 million - Q3 restructuring efforts resulted in non-recurring expenses, but the core expense run-rate is improving[62] - Q4 noninterest expenses are projected to be approximately $96.5 million, with further efficiency gains planned for 2026[62] - The company is committed to strategic investments that help broker clients ensure legitimate capacity, help carriers partner with legitimate and solvent payers, and drive continuous innovation[63][64] Company Information Conference Call Information The company will host a conference call on Thursday, October 16, 2025, at 9:30 AM CT to review financial results - The company will host a conference call on Thursday, October 16, 2025, at 9:30 AM CT to review financial results[70] - Investors can access the live webcast or archive via a designated link or the company's investor relations website[71] About Triumph Financial Triumph Financial, Inc. (NYSE: TFIN) is a financial and technology company focused on payments, factoring, intelligence, and banking services to modernize freight transactions - Triumph Financial, Inc. (NYSE: TFIN) is a financial and technology company focused on payments, factoring, intelligence, and banking services, aiming to modernize and simplify freight transactions[72] - Headquartered in Dallas, Texas, the company's brands include Triumph, TBK Bank, and LoadPay[72] Forward-Looking Statements This letter contains forward-looking statements regarding future events or performance, which are not historical facts and may differ materially from actual results - This letter contains forward-looking statements concerning expectations, beliefs, and plans for future events or performance, which are not historical facts[72] - These statements rely on assumptions, data, or methods that may be incorrect or imprecise, and actual results could differ materially from forward-looking statements[72][73] - The company undertakes no obligation to update any forward-looking statements, except as required by applicable law[73] Non-GAAP Financial Measures Introduction This letter includes non-GAAP financial measures to supplement GAAP metrics, with reconciliations provided at the end of the letter - This letter includes certain non-GAAP financial measures intended to supplement, not substitute, comparable GAAP metrics[74] - Reconciliations of non-GAAP to GAAP financial measures are provided at the end of this letter[74] Non-Recurring Items Summary Noninterest Expense Adjustments The company adjusted noninterest expenses in Q2 and Q3 to exclude non-recurring items like restructuring costs, USPS legal fee recovery, and new HQ termination fees Noninterest Expense Adjustments (in millions of dollars) | (in millions of dollars) | 2Q25 Reported | 3Q25 Reported | 2Q25 Adjusted | 3Q25 Adjusted | | :----------------------- | :------------ | :------------ | :------------ | :------------ | | Factoring | 14.1 | 19.1 | 19.5 | 18.0 | | Payments | 16.8 | 17.1 | 16.8 | 16.6 | | Intelligence | 7.7 | 5.9 | 4.7 | 5.7 | | Banking | 32.0 | 31.7 | 32.0 | 31.2 | | Corporate | 30.2 | 29.9 | 28.1 | 27.8 | | Total | 100.8 | 103.7 | 101.1 | 99.3 | - Adjustment items include restructuring costs, USPS legal fee recovery, Greenscreens transaction costs, other legal settlements, and new HQ termination fees[65] Revenue Adjustments The company adjusted Q2 and Q3 total revenue to exclude non-recurring items such as intersegment noninterest income and USPS fee collection Total Revenue Adjustments (in millions of dollars) | (in millions of dollars) | 2Q25 Reported | 3Q25 Reported | 2Q25 Adjusted | 3Q25 Adjusted | | :--------------------------------- | :------------ | :------------ | :------------ | :------------ | | Factoring | 40.8 | 39.7 | 38.7 | 38.8 | | Payments | 17.2 | 18.5 | 16.8 | 18.2 | | Intelligence | 1.7 | 2.3 | 1.7 | 2.3 | | Total Transportation Revenue | 59.7 | 60.5 | 57.2 | 59.3 | | Annualized Adjusted Total Transportation Revenue | 228.8 | 237.2 | | | - Adjustment items primarily include intersegment noninterest income and USPS fee collection[66] 2Q Non-Recurring Items Q2 non-recurring items had a net $5.271 million impact on pre-tax operating income, primarily from the USPS settlement and other non-recurring expenses 2Q25 Impact of Non-Recurring Items on Pre-Tax Operating Income | Broad Category | Line Item | Segment | Description | $ Impact | | :------------------ | :------------------------ | :----------- | :------------------------------------------------- | :----------- | | Interest income | Interest income and fees | Factoring | USPS - Collection of fees | $1,213,000 | | Noninterest expense | Professional Fees | Factoring | USPS - Recovery of legal expense | $7,376,000 | | Credit loss expense | Credit loss expense | Factoring | USPS - ACL Recovery | $3,773,000 | | Net impact of USPS settlement | | | | $12,362,000 | | Noninterest expense | Professional Fees | Intelligence | Greenscreens transaction costs | $(3,024,000) | | Noninterest expense | Other Noninterest Expense | Factoring | Other Legal Settlements | $(2,000,000) | | Noninterest expense | Other & Amortization of intangibles | Corporate | New HQ termination fees and accelerated amortization | $(2,067,000) | | Net impact of other non-recurring items | | | | $(7,091,000) | | Pre-tax operating income impact | | | | $5,271,000 | Footnotes on Network Engagement & Invoice Sizes Network engagement, defined as freight volume processed through the company's products, is a key metric for market density and data asset growth - Network engagement is defined as freight volume processed through the company's payments, audit, full AP automation, and rate intelligence products, serving as a key metric for broker market density and data asset growth[67] - The increase in network depth this quarter is primarily attributed to the inclusion of all broker-related transaction volume from Triumph Factoring[67] - The average invoice size for Payments is typically smaller than Factoring, as Factoring primarily handles long-haul trucking invoices, while Payments covers all freight broker invoices, including smaller LTL and parcel shipments[69] Financial Statements & Key Metrics Financial Highlights As of September 30, 2025, total assets were $6,357,149 thousand, with net income of $907 thousand and diluted EPS of $0.04 September 30, 2025 Financial Highlights (in thousands of dollars) | Metric | September 30, 2025 | | :---------------------------------------- | :----------------- | | Total assets | $6,357,149 | | Loans held for investment | $4,986,922 | | Deposits | $4,955,246 | | Net income attributable to common stockholders | $907 | | Annualized return on average assets | 0.11% | | Annualized return on average common equity | 0.41% | | Yield on loans | 8.17% | | Cost of interest-bearing deposits | 2.36% | | Net interest margin | 6.29% | | Non-performing loans to total loans | 1.36% | | Non-performing assets to total assets | 1.10% | | ACL to non-performing loans | 49.53% | | Tier 1 capital to average assets | 9.55% | | Common equity tier 1 capital to risk-weighted assets | 8.65% | | Book value per share | $36.79 | | Diluted earnings per share | $0.04 | Consolidated Balance Sheet As of September 30, 2025, total assets were $6,357,149 thousand, with net loans of $4,953,373 thousand and total liabilities of $5,437,816 thousand Consolidated Balance Sheet Summary (in thousands of dollars) | Metric | September 30, 2025 | | :--------------------------- | :----------------- | | Assets | | | Total cash and cash equivalents | $147,222 | | Net loans | $4,953,373 | | Goodwill | $353,898 | | Total assets | $6,357,149 | | Liabilities | | | Total deposits | $4,955,246 | | Federal Home Loan Bank advances | $280,000 | | Total liabilities | $5,437,816 | | Equity | | | Total stockholders' equity | $919,333 | | Total liabilities and equity | $6,357,149 | Consolidated Statement of Income For the three months ended September 30, 2025, net interest income was $87,833 thousand, with total noninterest expense of $103,714 thousand, resulting in $907 thousand net income attributable to common stockholders Consolidated Statement of Income Summary (in thousands of dollars) | Metric | Three Months Ended September 30, 2025 | | :---------------------------------------- | :------------------------------------ | | Total interest income | $108,940 | | Total interest expense | $21,107 | | Net interest income | $87,833 | | Provision for credit losses | $4,284 | | Net interest income after provision for credit losses | $83,549 | | Total noninterest income | $21,448 | | Total noninterest expense | $103,714 | | Net income before income taxes | $1,283 | | Net income | $1,708 | | Net income attributable to common stockholders | $907 | Earnings Per Share For the three months ended September 30, 2025, basic and diluted earnings per share were both $0.04 Earnings Per Share Summary | Metric | Three Months Ended September 30, 2025 | | :---------------------------------------- | :------------------------------------ | | Net income attributable to common stockholders | $907 | | Weighted average common shares outstanding | 23,752,331 | | Basic earnings per share | $0.04 | | Diluted net income attributable to common stockholders | $907 | | Diluted weighted average common shares outstanding | 23,924,858 | | Diluted earnings per share | $0.04 | Loans Held for Investment As of September 30, 2025, total loans held for investment amounted to $4,986,922 thousand, including $1,424,631 thousand in factoring receivables Loans Held for Investment Summary (in thousands of dollars) | Loan Type | September 30, 2025 | | :-------------------- | :----------------- | | Commercial real estate | $769,314 | | Commercial | $1,144,872 | | Factoring receivables | $1,424,631 | | Mortgage warehouse | $1,202,445 | | Total loans | $4,986,922 | | Total bank loans held for investment | $3,559,118 | Segment Operating Results For the three months ended September 30, 2025, the Banking segment reported $27,075 thousand in operating income, while the Intelligence segment had an operating loss of $3,598 thousand Segment Operating Income (in thousands of dollars) | Segment | Three Months Ended September 30, 2025 | | :--------- | :------------------------------------ | | Banking | $27,075 | | Factoring | $8,212 | | Payments | $450 | | Intelligence | $(3,598) | | Total operating income | $1,283 | Factoring Segment Details As of September 30, 2025, Factoring receivables ending balance was $1,193,849 thousand, with total purchased receivables of $2,997,895 thousand and an operating margin of 20.71% Factoring Segment Details (in thousands of dollars) | Metric | September 30, 2025 | | :--------------------- | :----------------- | | Factoring receivables ending balance | $1,193,849,000 | | Total purchased receivables | $2,997,895,000 | | Number of invoices purchased | 1,735,860 | | Average invoice size | $1,727 | | Operating margin | 20.71% | Payments Segment Details As of September 30, 2025, Payments segment total factoring receivables ending balance was $230,782 thousand, with total revenue of $18,503 thousand and an EBITDA margin of 16.8% Payments Segment Details (in thousands of dollars) | Metric | September 30, 2025 | | :--------------------- | :----------------- | | Total factoring receivables ending balance | $230,782,000 | | Total revenue | $18,503,000 | | Pre-tax operating income (loss) | $450,000 | | EBITDA margin | 16.8% | | Number of invoices processed | 8,826,848 | | Amount of payments processed | $10,662,418,000 | Intelligence Segment Details As of September 30, 2025, Intelligence segment revenue was $2,338 thousand, with a gross profit of $2,072 thousand and a gross margin of 89% Intelligence Segment Details (in thousands of dollars) | Metric | September 30, 2025 | | :--------------------------- | :----------------- | | Revenue | $2,338,000 | | Selling, general and administrative expenses | $5,670,000 | | Pre-tax operating income (loss) | $(3,598,000) | | Gross margin | 89% | Deposits Summary As of September 30, 2025, total deposits were $4,955,246 thousand, including $2,095,017 thousand in noninterest-bearing demand deposits Deposits Summary (in thousands of dollars) | Deposit Type | September 30, 2025 | | :------------------------ | :----------------- | | Noninterest-bearing demand | $2,095,017 | | Interest-bearing demand | $668,576 | | Money market | $580,748 | | Savings | $522,469 | | Time deposits | $228,415 | | Brokered time deposits | $705,772 | | Other brokered deposits | $115,116 | | Total deposits | $4,955,246 | Net Interest Margin For the three months ended September 30, 2025, net interest income was $87,833 thousand, with an interest rate spread of 5.22% and a net interest margin of 6.29% Net Interest Margin Summary (in thousands of dollars) | Metric | Three Months Ended September 30, 2025 | | :------------------------ | :------------------------------------ | | Average interest-earning assets | $5,537,450 | | Average interest-bearing liabilities | $3,227,428 | | Net interest income | $87,833 | | Interest rate spread | 5.22% | | Net interest margin | 6.29% | Loan Portfolio Additional Information For the three months ended September 30, 2025, average bank loans were $3,484,400 thousand, with an average yield on total loans of 8.17% Loan Portfolio Additional Information (in thousands of dollars) | Metric | Three Months Ended September 30, 2025 | | :------------------------ | :------------------------------------ | | Average bank loans | $3,484,400 | | Average factoring receivables | $1,167,092 | | Average payments receivables | $213,386 | | Average yield on total loans | 8.17% | Non-GAAP Financial Measures & Definitions The company uses non-GAAP financial measures like tangible common equity and tangible book value per share to provide a clearer view of operational performance - Tangible common stockholders' equity: Common stockholders' equity less goodwill and other intangible assets - Total tangible assets: Total assets less goodwill and other intangible assets - Tangible book value per share: Tangible common stockholders' equity divided by total common shares outstanding - Tangible common stockholders' equity ratio: Tangible common stockholders' equity divided by total tangible assets - Return on average tangible common equity: Net income attributable to common stockholders divided by average tangible common stockholders' equity[94][97] Non-GAAP Financial Measures Summary (in thousands of dollars) | Metric | September 30, 2025 | | :---------------------------------------- | :----------------- | | Average tangible common stockholders' equity | $472,434 | | Return on average tangible common equity | 0.76% | | Net noninterest expense to average assets | 5.08% | | Tangible common stockholders' equity | $468,144 | | Tangible book value per share | $19.70 | | Period-end tangible assets | $5,950,960 | | Tangible common stockholders' equity ratio | 7.87% |