TRIUMPH FINANCIAL, INC. FORM 10-Q SEPTEMBER 30, 2024

Press release · 10/26 05:06
TRIUMPH FINANCIAL, INC. FORM 10-Q SEPTEMBER 30, 2024

TRIUMPH FINANCIAL, INC. FORM 10-Q SEPTEMBER 30, 2024

Triumph Financial, Inc. (TFIN) reported its quarterly financial results for the period ended September 30, 2024. The company’s consolidated net income was $[insert amount], a decrease of [insert percentage] compared to the same period last year. Total revenue was $[insert amount], a decrease of [insert percentage] compared to the same period last year. The company’s net interest income was $[insert amount], a decrease of [insert percentage] compared to the same period last year. Non-interest income was $[insert amount], a decrease of [insert percentage] compared to the same period last year. The company’s total assets were $[insert amount] as of September 30, 2024, and its total stockholders’ equity was $[insert amount]. The company’s book value per share was $[insert amount] as of September 30, 2024.

Overview

Triumph Financial, Inc. is a financial holding company headquartered in Dallas, Texas that offers a diversified line of payments, factoring and banking services. As of September 30, 2024, the company had consolidated total assets of $5.866 billion, total loans held for investment of $4.333 billion, total deposits of $4.707 billion and total stockholders’ equity of $885.8 million.

The company operates through three main segments:

  1. Banking: Offers traditional banking services, commercial lending products, and national lending products through its wholly owned bank subsidiary, TBK Bank. This segment generated 61% of the company’s total segment revenue for the nine months ended September 30, 2024.

  2. Factoring: Provides working capital to the trucking industry through the purchase of invoices generated by medium to large sized trucking fleets. This segment generated 30% of the company’s total segment revenue.

  3. Payments: Operates TriumphPay, a payments network for the over-the-road trucking industry that connects brokers, shippers, factors and carriers. This segment generated 9% of the company’s total segment revenue.

Third Quarter 2024 Overview

  • Net income available to common stockholders was $4.5 million, or $0.19 per diluted share, compared to $12.0 million, or $0.51 per diluted share, in Q3 2023.
  • Total assets increased to $5.866 billion, including $4.333 billion in gross loans held for investment, compared to $5.347 billion in total assets and $4.163 billion in gross loans at the end of 2023.
  • Total deposits increased to $4.707 billion, up from $3.977 billion at the end of 2023.
  • Capital ratios remained strong, with Tier 1 capital and total capital to risk-weighted assets ratios of 13.57% and 16.62%, respectively.

Revenue and Profit Trends

  • Net interest income decreased 2.8% to $88.7 million in Q3 2024, driven by lower yields on loans and higher funding costs.
  • Noninterest income increased 30.5% to $17.5 million, primarily due to higher fees in the Payments segment.
  • Noninterest expense increased 10.9% to $95.6 million, mainly from higher salaries, occupancy costs, and amortization of intangibles.
  • Credit loss expense increased significantly to $4.3 million, up from $0.8 million in Q3 2023, due to higher specific reserves and net charge-offs.

Segment Performance

  • The Banking segment’s operating income decreased 21.4% due to lower net interest income and higher credit loss expense.
  • The Factoring segment’s operating income decreased 7.6% as higher noninterest expense offset modest growth in net interest income.
  • The Payments segment’s operating loss improved 30.2% as higher noninterest income and lower credit loss expense offset increased noninterest expense.

Outlook

The transportation factoring industry continues to face headwinds from higher funding costs and lower average invoice prices. However, Triumph Financial has sufficient access to capital, manageable funding costs, and the ability to diversify factoring income. The company plans to focus on managed growth in the Factoring segment with a greater emphasis on enhancing efficiency and profitability. The Payments segment has seen strong growth in invoice and payment processing volumes, and the company believes this business is well-positioned for the future.

Overall, Triumph Financial’s diversified business model and investments in technology and efficiency initiatives position the company to navigate the current economic environment, though credit quality and profitability remain challenges in the near-term.