Financial Data and Key Metrics Changes - The company reported earnings per share of $0.95 and net income of $29.5 million, achieving a run rate on average assets of 1.19%, exceeding the targeted 1% [10] - Net interest income (NII) increased by 10.2%, while revenue, excluding notable items, rose by 8.8% [5] - Non-interest expense, excluding notable items, decreased by 0.7% [5] - The annualized pre-tax, pre-provision return on assets (ROA) increased to 1.7% from 1.63% [10] Business Line Data and Key Metrics Changes - Loan origination increased by approximately $500 million, or 37% year-over-year, with loan and swap fees rising by 57% during the same period [6] - The company achieved 20% ownership of Argent Financial and restructured mortgage delivery [5] - Non-interest income for Q4 was reported at $16.7 million, declining to $16.3 million when excluding notable items [14] Market Data and Key Metrics Changes - The company added over 10 production bankers in Houston and Dallas-Fort Worth, indicating a strategic focus on market disruption [7] - Total past dues at year-end were 0.96% of total loans, reflecting no change from the prior quarter [8] - Non-performing assets declined from 1.07% at year-end, showing an approximately $7 million reduction [8] Company Strategy and Development Direction - The company is focused on "Optimize Origin," aiming for a top quartile ROA and leveraging market disruptions from recent M&A activity [3][4] - The strategy includes investing approximately $10 million in new bankers and banking teams throughout the year to drive growth [7] - The company plans to intensify focus on client delivery models for additional revenue growth in 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing significant momentum and a strong earnings profile as they enter 2026 [17] - The company anticipates loan growth to be more weighted to the second half of the year, targeting mid to high single-digit growth for loans and deposits [12][11] - Management emphasized the importance of maintaining discipline in growth to ensure profitability and ROA targets [54] Other Important Information - The tangible book value grew sequentially to $35.04, marking the 13th consecutive quarter of growth [15] - The company redeemed approximately $145 million in subordinated debt and repurchased about $16 million worth of common stock while maintaining strong capital ratios [16] Q&A Session Summary Question: What is the target for new producer hires this year? - Management indicated that the $10 million budget allows for hiring additional producers beyond the initial 10, with ongoing strategic conversations in various markets [21][22] Question: How does the net interest margin outlook look for the upcoming quarters? - Management noted that while there may be slight margin compression in Q1 due to timing differences, they expect net interest margin to stabilize in the 3.70%-3.80% range by Q4 [13][33] Question: What types of lenders are being targeted for new hires? - The focus is on C&I-focused lenders, treasury management officers, and private bankers, with a consistent opportunity for hiring expected throughout the year [39][41] Question: How does the company plan to manage expenses with new hires? - Management is committed to reducing expenses while bringing in new hires, ensuring that the impact on profitability is neutralized [42][43] Question: What is the company's approach to loan growth and credit quality? - Management is focused on improving credit quality by shifting towards better-performing loans and managing non-performing assets effectively [73]

Core Insights - Tricolor Holdings filed for Chapter 7 liquidation, leaving around 10,000 vehicles unsecured across six states, which are crucial for covering its substantial debt [2][8] - Triumph Financial, the Dallas community bank, is heavily involved as the agent bank for a $60.5 million loan facility to Tricolor, holding $23 million of that amount [3][4] - The bankruptcy has triggered significant potential losses for several banks, with Fifth Third Bancorp estimating losses of approximately $200 million due to issues related to alleged fraud [9][10] Company Actions - Triumph Financial is actively working to secure and consolidate the vehicle collateral, incurring expenses for security measures at Tricolor's facilities [4][5] - The bankruptcy trustee has requested a third-party loan servicer, Vervent Inc., to take control of Tricolor's vehicles and auto loans, emphasizing the importance of servicing approximately 100,000 auto loans [6][11] - There is contention among creditors regarding the costs associated with the consolidation and security of the vehicles, particularly if Vervent assumes control [7][10] Industry Impact - The fallout from Tricolor's bankruptcy is expected to have a more severe impact on smaller banks, with analysts noting that losses could be particularly damaging given the size of their loans [10][12] - Despite the turmoil, some banks like Renasant and Origin have reported that their loans to Tricolor are still performing, indicating a potential for recovery [12][13] - Analysts believe that the issues stemming from Tricolor's bankruptcy are likely isolated and should not pose a systemic risk to the financial sector or the subprime auto lending market [14][15]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.71 for Q1, with a net expense impact of $2,300,000 equivalent to $0.06 in EPS pressure [16][18] - Net interest margin expanded by 11 basis points to 3.44%, exceeding expectations due to better loan yields and deposit costs [18][19] - Annualized return on assets (ROA) was 93 basis points, with a target of reaching a run rate of 1% or greater by Q4 [6][7] Business Line Data and Key Metrics Changes - The mortgage business is undergoing restructuring, expected to improve annual pretax earnings by approximately $1,500,000 starting in the second half of the year [6][10] - Non-interest income for Q1 was reported at $15,600,000, an increase from $14,100,000 in Q4, primarily due to seasonal factors in the insurance business [18][19] - Non-interest expense decreased to $62,100,000 in Q1 from $65,400,000 in Q4, with further reductions anticipated due to the Optimize Origin initiative [18][19] Market Data and Key Metrics Changes - Deposits, excluding brokered deposits, grew by 7.2% on an annualized basis, setting the stage for anticipated loan growth [10][17] - Non-interest bearing deposits remained stable at about 23% of total deposits, with expectations to maintain this range through 2025 [17] - The loan-to-deposit ratio, excluding mortgage warehouse, was reported at 86.1%, below the 90% target [17] Company Strategy and Development Direction - The company is focused on the "Optimize Origin" initiative to achieve elite financial performance and improve operational efficiency [5][8] - A strategic goal is to maintain mid to high single-digit loan growth in 2025, supported by core deposit growth [10][18] - The company is exploring opportunities for share buybacks and capital deployment to enhance shareholder value [59][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities despite macroeconomic uncertainties, citing strong customer relationships and market positioning [21][75] - The company is adjusting loan growth expectations to the lower end of the previous guidance due to macroeconomic factors but remains confident in achieving growth [22][29] - Management highlighted the importance of maintaining a strong credit culture and proactive client selection to optimize the portfolio [11][30] Other Important Information - The company has successfully exited approximately $200,000,000 in client relationships that did not fit its selection criteria [12][30] - The tangible book value grew sequentially to $32.43, marking the tenth consecutive quarter of growth [20] - Regulatory capital levels remain above well-capitalized standards, providing flexibility for future growth initiatives [20] Q&A Session Summary Question: Loan growth outlook amidst macro uncertainty - Management acknowledged optimism in loan growth despite adjusting expectations to the lower end of the previous guidance, citing strong pipelines and customer engagement [22][24][29] Question: Impact of Optimize Origin initiative on bottom line - Management indicated that a portion of the savings from the Optimize Origin initiative would flow to the bottom line while also investing in growth opportunities [31][32] Question: Deposit pricing competition and loan yields - Management reported stable loan yields in the 7.3% to 7.5% range, with proactive communication with customers regarding deposit pricing [64][66] Question: Update on hiring efforts and team performance - Management confirmed ongoing strategic hiring efforts, particularly in North Texas and the Southeast, with positive performance reported from the Houston team [45][48] Question: Mortgage segment restructuring and revenue outlook - Management noted that restructuring the mortgage segment would lower expenses but also impact revenue, with expectations for some offsetting tailwinds [49][50]