Triumph Financial, Inc.
For the period ended Jun 30, 2025. Filed Jul 16, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 16, 2025
TFIN$61.23-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-16.
0001628280-25-017991
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-16.
0001628280-25-035066
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 249 previous paragraphs and 351 current paragraphs.
146 unchanged; 91 reworded; 71 added; 12 removed; 0 previous and 43 current paragraphs rearranged.
Tables are not compared: 39 previous and 60 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (71)
Current report
Second Quarter 2025 Overview
Current report
USPS Settlement
Current report
•$11.5 million to the aforementioned large carrier,
Current report
•$19.4 million to relieve the entire balance of Misdirected Payments Receivable, net of customer reserves,
Current report
•$1.1 million of interest and fees,
Current report
•$7.9 million of legal expense recovery
Current report
•$3.8 million to recovery of previously charged-off acquired over-formula advances related to the aforementioned large carrier, and
Current report
•$3.8 million to CVLG in accordance with the amended terms of the CVLG transaction.
Current report
The USPS Settlement had a $12.4 million and $11.5 million positive impact on pretax net income for the three and six months ended June 30, 2025, respectively made up of the prior period impacts of the interest and fees, legal expense recovery, and the recovery of the previously charged-off acquired over-formula advances. The $19.4 million Misdirected Payments Receivable balance was legally discharged upon receipt of the settlement proceeds on July 10, 2025.
Current report
During the three months ended June 30, 2025, the Company acquired a $23.4 million nonperforming equipment finance commercial loan for $3.3 million. The loan was purchased credit deteriorated ("PCD") and a $10.8 million ACL was established on Day 1 resulting in a discount of $9.3 million. Prior to June 30, 2025, the Company determined that the $10.8 million ACL was uncollectible and charged off the entire amount. Such charge-off had no impact on credit loss expense.
Current report
The decrease in credit loss expense was primarily driven by net charge-off activity. Excluding the $10.8 million charge-off on the acquired PCD loan which had no impact on credit loss expense, we had a net recovery of $3.0 million during the three months ended June 30, 2025 compared to net charge-offs of $2.7 million during the same period a year ago. Such net recovery for the three months ended June 20, 2025 includes the aforementioned $3.8 million recovery resulting from the USPS Settlement. Changes to projected loss drivers and prepayment speeds that the Company forecasted over the reasonable and supportable forecast periods to calculate expected losses resulted in a benefit to credit loss expense of $0.2 million during the three months ended June 30, 2025 compared to $1.1 million of credit loss expense during the same period a year ago.
Current report
•Fee income. Fee income increased $4.2 million due to a $1.8 million increase in fee income from our Payments segment, a $1.6 million increase in fee income from our Intelligence segment mostly driven by the acquisition of Greenscreens during the three months ended June 30, 2025, and a $0.7 million increase in fee income from insurance services period over period.
Current report
•Professional Fees. Professional fees decreased $4.9 million, or 107.0%, primarily due to the recovery of $7.4 million of previously expensed legal fees through the USPS Settlement during the three months ended June 30, 2025. This decrease was partially offset by $3.0 million of professional fees incurred during the three months ended June 30, 2025 as a result of the Greenscreens acquisition.
Current report
•Amortization of Intangible Assets. Amortization of intangible assets increased $0.5 million, or 18.5%, primarily due to the amortization of addition of intangible assets resulting from the Greenscreens acquisition.
Current report
•Communication and Technology. Communication and technology decreased $2.0 million, or 13.9%, primarily due to decreased IT professional services fees.
Current report
Income tax expense increased $2.7 million, from $0.8 million for the three months ended June 30, 2024 to $3.5 million for the three months ended June 30, 2025. The effective tax rate was 44% for the three months ended June 30, 2025, compared to 23% for the three months ended June 30, 2024. The effective tax rate for the three months ended June 30, 2025 was impacted by limited restricted stock stock-based compensation deductibility, higher state tax rates, and higher disallowed expenses including some transaction costs paid in connection with the Greenscreens acquisition.
Current report
Noninterest expense at our Banking segment decreased period over period the details of which are illustrated in the table above.
Current report
(2)The current quarter charge-off rate for the three months ended June 30, 2025 reflects a $3.8 million recovery of factoring balances charged off in a prior period. Such recovery impacted the current quarter charge-off rate for that period by (0.33%).
Current report
Our average invoice size decreased 4.6% from $1,775 for the three months ended June 30, 2024 to $1,693 for the three months ended June 30, 2025. This decrease is the result of a broad drop in transportation invoice prices across the industry as well as a change in mix as we add more short-haul fleets to our factoring purchases. That said, the number of invoices purchased increased 18.5% period over period.
Current report
Noninterest income at our Factoring segment decreased slightly period over period with no significant variances in its components period over period.
Current report
Noninterest expense at our Factoring segment decreased period over period the details of which are illustrated in the table above. For the three months ended June 30, 2025, professional fees, a component of noninterest expense, at our Factoring segment reflect a $7.4 million recovery of previously expensed legal fees associated with the USPS Settlement. Other noninterest expense at our Factoring segment reflects a $2.0 million expense driven by settlement of litigation unrelated to the USPS Settlement for the three months ended June 30, 2025.
Current report
Noninterest income increased due to a $1.8 million increase in payment and audit fees earned from our payments and audit business during the three months ended June 30, 2025 compared to the same period a year ago. There were no other significant changes in the components of noninterest income at our Payments segment period over period.
Current report
Noninterest expense at our Payments segment decreased period over period the details of which are illustrated in the table above.
Current report
Results of Operations
Current report
Six months ended June 30, 2025 compared with six months ended June 30, 2024
Current report
Net Income
Current report
We earned net income of $4.4 million for the six months ended June 30, 2025 compared to $6.9 million for the six months ended June 30, 2024, a decrease of $2.5 million or 35.7%.
Current report
Net Interest Income
Current report
(4)Ratios have been annualized.
Current report
We earned net interest income of $173.1 million for the six months ended June 30, 2025 compared to $174.0 million for the six months ended June 30, 2024, a decrease of $0.9 million, or 0.5%, primarily driven by the following factors.
Current report
Interest expense increased $3.4 million, or 9.7%, primarily driven by higher average interest-bearing liabilities which increased in total period over period, including average total interest bearing deposits which increased $205.2 million, or 8.0%. The increase in interest expense was partially offset by decreased rates on almost all of our interest bearing liabilities. Average noninterest bearing deposits grew $304.2 million.
Current report
Net interest margin decreased to 6.46% for the six months ended June 30, 2025 from 7.18% for the six months ended June 30, 2024, a decrease of 72 basis points, or 10.0%.
Current report
Credit Loss Expense
Current report
Our credit loss expense on loans decreased $8.2 million, or 91.1%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current report
During the six months ended June 30, 2025, the Company acquired a $23.4 million nonperforming loan for $3.3 million. The loan was purchased credit deteriorated ("PCD") and therefore, a $10.8 million ACL was established on Day 1 resulting in a discount of $9.3 million. Prior to June 30, 2025, the Company determined that the $10.8 million ACL was uncollectible and charged off the entire amount. Such charge-off had no impact on credit loss expense.
Current report
The decrease in credit loss expense was partially offset by changes in volume and mix of the loan portfolio which resulted in credit loss expense of $1.8 million during the six months ended June 30, 2025 compared to $1.0 million of credit loss expense during the same period a year ago.
Current report
Credit loss expense for off balance sheet credit exposures decreased $1.3 million, primarily due to changes to outstanding commitments to fund and assumed loss rates period over period.
Current report
Noninterest Income
Current report
•Fee income. Fee income increased $4.7 million, or 27.1% due to a $2.9 million increase in fee income from our Payments segment, a $1.9 million increase in fee income from our Intelligence segment mostly driven by the acquisition of Greenscreens during the three months ended June 30, 2025, and a $0.8 million increase in fee income from insurance services period over period.
Current report
•Insurance commissions. Insurance commissions decreased $0.5 million, or 17.6%, due to lower volumes of processed policies.
Showing the first 40 of 71 passages. Open the source sections for the rest.
Removed paragraphs (12)
Previous report
First Quarter 2025 Overview
Previous report
Items related to our July 2020 acquisition of TFS
Previous report
As disclosed on our SEC Forms 8-K filed on July 8, 2020 and September 23, 2020, we acquired the transportation factoring assets of TFS, a wholly owned subsidiary of Covenant Logistics Group, Inc. ("CVLG"), and subsequently amended the terms of that transaction. There were no material developments related to that transaction that impacted our operating results for the three months ended March 31, 2025.
Previous report
At March 31, 2025, the carrying value of the acquired over-formula advances was $1.0 million, the total reserve on acquired over-formula advances was $1.0 million and the balance of our indemnification asset, the value of the payment that would be due to us from CVLG in the event that these over-advances are charged off, was $0.5 million.
Previous report
The decrease in credit loss expense was impacted by net charge-off activity during the period. Net charge-offs during the three months ended March 31, 2025 were $5.8 million compared to $1.9 million during the same period a year ago. Approximately $5.7 million of the $5.8 million net charge-offs for the three months ended March 31, 2025 were reserved in a prior period while approximately $1.4 million of the $1.9 million net charge-offs for the three months ended March 31, 2024 were reserved in a prior period. Prior period reserves are included in the discussion of changes in specific reserves above.
Previous report
•Occupancy, Furniture and Equipment. Occupancy, furniture and equipment expenses increased $0.8 million, or 10.6%, primarily due to $0.9 million of expense related to the building we acquired during March of 2024.
Previous report
•Professional Fees. Professional fees increased $2.5 million, or 71.3%, primarily due to a $2.3 million increase in legal fees period over period partially driven by the pending Greenscreens.ai acquisition.
Previous report
(2) Net intersegment noninterest income (expense) includes:
Previous report
Our average invoice size increased 0.1% from $1,806 for the three months ended March 31, 2024 to $1,808 for the three months ended March 31, 2025. Additionally, the number of invoices purchased increased 9.5% period over period.
Previous report
As illustrated in the table above, the increase in noninterest expense at our Factoring segment was primarily due to increased salaries and benefits expense and increased professional fees. There were no other significant changes in the components of noninterest expense at our Factoring segment period over period.
Previous report
As illustrated in the table above, the increase in noninterest expense at our Payments segment was primarily due to increased salaries and benefits expense, communications and technology expense, and software amortization during the three months ended March 31, 2025 compared to the same period a year ago. It should be noted that salaries and benefits expense for the three months ended March 31, 2025 includes $1.1 million of severance expense associated with our realignment of leadership at our Payments segment. The increase in noninterest expense was partially offset by a decrease in professional fees period over period. There were no other significant changes in the components of noninterest expense at our Factoring segment period over period.
Previous report
The ACL decreased $4.5 million, or 11.0%. This decrease reflects net charge-offs of $5.8 million and credit loss expense of $1.3 million. Refer to the Results of Operations: Credit Loss Expense section for discussion of material charge-offs and credit loss expense. At quarter end, our entire remaining Over-Formula Advance position was down from $1.4 million at December 31, 2024 to $1.0 million at March 31, 2025 and the entire balance at March 31, 2025 was fully reserved. At March 31, 2025, the Misdirected Payments amount, net of customer reserves, was $19.4 million. Based on our legal analysis and discussions with our counsel advising us on this matter, we continue to believe it is probable that we will prevail in such action and that the USPS will have the capacity to make payment on such receivable. Consequently, we have not reserved for such balance as of March 31, 2025.
Reworded paragraphs (91)
Previous wording
We are a financial holding company headquartered in Dallas, Texas and registered under the Bank Holding Company Act, that offers a diversified line of banking, factoring, payments, and intelligence services. Our principal subsidiary is TBK Bank, SSB, a Texas state savings bank and the entity through which we offer substantially all of our products and services. Effective January, 1, 2025, we merged Triumph Financial Services LLC, the entity through which we previously conducted all of our factoring operations, with and into TBK Bank, SSB. As of March 31, 2025, we had consolidated total assets of $6.268 billion, total loans held for investment of $4.666 billion, total deposits of $4.977 billion and total stockholders’ equity of $893.9 million.
Current wording
We are a financial holding company headquartered in Dallas, Texas and registered under the Bank Holding Company Act, that offers a diversified line of banking, factoring, payments, and intelligence services. Our principal subsidiary is TBK Bank, SSB, a Texas state savings bank and the entity through which we offer substantially all of our products and services. Effective January, 1, 2025, we merged Triumph Financial Services LLC, the entity through which we previously conducted all of our factoring operations, with and into TBK Bank, SSB. As of June 30, 2025, we had consolidated total assets of $6.495 billion, total loans held for investment of $4.953 billion, total deposits of $5.186 billion and total stockholders’ equity of $912.4 million.
Previous wording
Our payments business, TriumphPay, is a payments network for the over-the-road trucking industry. TriumphPay was originally designed as a platform to manage Carrier payments for third party logistics companies, or 3PLs ("Brokers") and the manufacturers and other businesses that contract directly for the shipment of goods (“Shippers”), with a focus on increasing on-balance sheet factored receivable transactions through the offering of quick pay transactions for Carriers receiving such payments through the TriumphPay platform. During 2021, TriumphPay acquired HubTran, Inc., a software platform that offers workflow solutions for the processing and approval of Carrier Invoices for approval by Brokers or purchase by the factoring businesses providing working capital to Carriers ("Factors"). Following such acquisition, the TriumphPay strategy shifted from a capital-intensive on-balance sheet product with a greater focus on interest income to a network for the trucking industry with an additional focus on fee revenue. TriumphPay connects Brokers, Shippers, Factors and Carriers through forward-thinking solutions that help each party successfully manage the life cycle of invoice presentment for services provided by Carrier through the processing and audit of such invoice to its ultimate payment to the Carrier or the Factor providing working capital to such Carrier. During 2024, we introduced our LoadPay product; a digital bank account developed for Carriers. LoadPay provides a user experience and financial products, including small business checking accounts, tailored to the financial needs of the small trucking companies that are the ultimate payees inside of the TriumphPay network. A key feature of the LoadPay product is our ability to rapidly fund invoices approved for payment through the TriumphPay network or approved for purchase as part of our factoring operations to the LoadPay account without the need for such payments to be processed through traditional payment rails such as ACH transfers. TriumphPay offers supply chain finance to Brokers, allowing them to pay their Carriers faster and drive Carrier loyalty. TriumphPay provides tools and services to increase automation, mitigate fraud, create back-office efficiency and improve the payment experience. TriumphPay also operates in a highly specialized niche with unique processes and key performance indicators.
Current wording
Our payments business is a payments network for the over-the-road trucking industry. This platform was originally designed to manage Carrier payments for third party logistics companies, or 3PLs ("Brokers") and the manufacturers and other businesses that contract directly for the shipment of goods (“Shippers”), with a focus on increasing on-balance sheet factored receivable transactions through the offering of quick pay transactions for Carriers receiving such payments through the network. During 2021, we acquired HubTran, Inc., a software platform that offers workflow solutions for the processing and approval of Carrier Invoices for approval by Brokers or purchase by the factoring businesses providing working capital to Carriers ("Factors"). Following such acquisition, our strategy shifted from a capital-intensive on-balance sheet product with a greater focus on interest income to a network for the trucking industry with an additional focus on fee revenue. Our network connects Brokers, Shippers, Factors and Carriers through forward-thinking solutions that help each party successfully manage the life cycle of invoice presentment for services provided by Carrier through the processing and audit of such invoice to its ultimate payment to the Carrier or the Factor providing working capital to such Carrier. During 2024, we introduced our LoadPay product; a digital bank account developed for Carriers. LoadPay provides a user experience and financial products, including small business checking accounts, tailored to the financial needs of the small trucking companies that are the ultimate payees inside of the network. A key feature of the LoadPay product is our ability to rapidly fund invoices approved for payment through the network or approved for purchase as part of our factoring operations to the LoadPay account without the need for such payments to be processed through traditional payment rails such as ACH transfers. We also offer supply chain finance to Brokers, allowing them to pay their Carriers faster and drive Carrier loyalty. In addition, through the network, we provide tools and services to increase automation, mitigate fraud, create back-office efficiency and improve the payment experience. Our payments business also operates in a highly specialized niche with unique processes and key performance indicators.
Previous wording
Our data intelligence business, which we call Intelligence, was launched at the beginning of the fourth quarter of 2024 to turn the over-the-road trucking data collected through our services into actionable insights for our customers. This launch coincided with our acquisition of the assets of Isometric Technologies Inc., a company that provides service and performance scoring and benchmarking capabilities to the over-the-road trucking industry. Data has the ability to drive efficiency, enhance decision-making, and enable Shippers, Brokers, and Carriers to operate more profitably in a very competitive over-the-road trucking market. With our access to data from our TriumphPay network and other sources, we believe we can develop products and services to offer to logistics service providers, allowing them to better plan for peak periods, competitively source freight capacity, and allocate resources efficiently, thus improving their profitability. Going forward, Intelligence will operate in a highly specialized niche with unique processes and key performance indicators.
Current wording
Our data intelligence business, which we call Intelligence, was launched at the beginning of the fourth quarter of 2024 to turn the over-the-road trucking data collected through our services into actionable insights for our customers. This launch coincided with our acquisition of the assets of Isometric Technologies Inc., a company that provides service and performance scoring and benchmarking capabilities to the over-the-road trucking industry. During the second quarter of 2025, we also acquired Greenscreens AI, Inc. ("Greenscreens"), a company that provides a pricing solution for the logistics industry that delivers short-term freight market pricing intelligence and business insights. Data has the ability to drive efficiency, enhance decision-making, and enable Shippers, Brokers, and Carriers to operate more profitably in a very competitive over-the-road trucking market. With our access to data from our payments network and other sources, we believe we can develop products and services to offer to logistics service providers, allowing them to better plan for peak periods, competitively source freight capacity, and allocate resources efficiently, thus improving their profitability. Intelligence operates in a highly specialized niche with unique processes and key performance indicators.
Previous wording
At March 31, 2025, our business is primarily focused on providing financial services to participants in the for-hire trucking ecosystem in the United States, including Brokers, Shippers, Factors and Carriers. Within such ecosystem, we operate our TriumphPay payments platform, which connects such parties to streamline and optimize the presentment, audit and payment of transportation invoices. We also act as capital provider to the Carrier industry through our factoring business. We have begun to offer data services through our intelligence offerings. Our traditional banking operations provide stable, low cost deposits to support our operations, a diversified lending portfolio to add stability to our balance sheet, and a suite of traditional banking products and services to participants in the for-hire trucking ecosystem to deepen our relationship with such clients.
Current wording
At June 30, 2025, our business is primarily focused on providing financial services to participants in the for-hire trucking ecosystem in the United States, including Brokers, Shippers, Factors and Carriers. Within such ecosystem, we operate our payments platform, which connects such parties to streamline and optimize the presentment, audit and payment of transportation invoices. We also act as capital provider to the Carrier industry through our factoring business. We also offer data services through our intelligence offerings. Our traditional banking operations provide stable, low cost deposits to support our operations, a diversified lending portfolio to add stability to our balance sheet, and a suite of traditional banking products and services to participants in the for-hire trucking ecosystem to deepen our relationship with such clients.
Previous wording
We have determined our reportable segments are Banking, Factoring, Payments and Intelligence. For the three months ended March 31, 2025, our Banking segment generated 60% of our total segment revenue (comprised of interest and noninterest income), our Factoring segment generated 30% of our total segment revenue, our Payments segment generated 10% of our total segment revenue, and our Intelligence segment generated less than 1% of our total segment revenue.
Current wording
We have determined our reportable segments are Banking, Factoring, Payments and Intelligence. For the six months ended June 30, 2025, our Banking segment generated 59% of our total segment revenue (comprised of interest and noninterest income), our Factoring segment generated 30% of our total segment revenue, our Payments segment generated 10% of our total segment revenue, and our Intelligence segment generated 1% of our total segment revenue.
Previous wording
We incurred a net loss to common stockholders for the three months ended March 31, 2025 of $0.8 million, or $(0.03) per diluted share, compared to net income available to common stockholders for the three months ended March 31, 2024 of $3.4 million, or $0.14 per diluted share. For the three months ended March 31, 2025, our return on average common equity was (0.37)% and our return on average assets was 0.00%.
Current wording
Net income available to common stockholders for the three months ended June 30, 2025 was $3.6 million, or $0.15 per diluted share, compared to net income available to common stockholders for the three months ended June 30, 2024 of $1.9 million, or $0.08 per diluted share. For the three months ended June 30, 2025, our return on average common equity was 1.68% and our return on average assets was 0.28%.
Previous wording
At March 31, 2025, we had total assets of $6.268 billion, including gross loans held for investment of $4.666 billion, compared to $5.949 billion of total assets and $4.547 billion of gross loans held for investment at December 31, 2024. Total loans held for investment increased $119.3 million during the three months ended March 31, 2025. Our Banking loans, which constitute 71% of our total loan portfolio at March 31, 2025, decreased from $3.340 billion in aggregate as of December 31, 2024 to $3.314 billion as of March 31, 2025, a decrease of 0.8%. Our Factoring factored receivables, which constitute 25% of our total loan portfolio at March 31, 2025, increased from $1,032.8 million in aggregate as of December 31, 2024 to $1,146.4 million as of March 31, 2025, an increase of 11.0%. Our Payments factored receivables, which constitute 4% of our total loan portfolio at March 31, 2025, increased from $171.7 million in aggregate as of December 31, 2024 to $204.2 million as of March 31, 2025, an increase of 19.0%.
Current wording
At June 30, 2025, we had total assets of $6.495 billion, including gross loans held for investment of $4.953 billion, compared to $5.949 billion of total assets and $4.547 billion of gross loans held for investment at December 31, 2024. Total loans held for investment increased $406.2 million during the six months ended June 30, 2025. Our Banking loans, which constitute 72% of our total loan portfolio at June 30, 2025, increased from $3.340 billion in aggregate as of December 31, 2024 to $3.549 billion as of June 30, 2025, an increase of 6.3%. Our Factoring factored receivables, which constitute 24% of our total loan portfolio at June 30, 2025, increased from $1.033 billion in aggregate as of December 31, 2024 to $1.175 billion as of June 30, 2025, an increase of 13.7%. Our Payments factored receivables, which constitute 5% of our total loan portfolio at June 30, 2025, increased from $171.7 million in aggregate as of December 31, 2024 to $226.5 million as of June 30, 2025, an increase of 32.0%.
Previous wording
At March 31, 2025, we had total liabilities of $5.374 billion, including total deposits of $4.977 billion, compared to $5.058 billion of total liabilities and $4.821 billion of total deposits at December 31, 2024. Deposits increased $155.9 million during the three months ended March 31, 2025.
Current wording
At June 30, 2025, we had total liabilities of $5.582 billion, including total deposits of $5.186 billion, compared to $5.058 billion of total liabilities and $4.821 billion of total deposits at December 31, 2024. Deposits increased $365.3 million during the six months ended June 30, 2025.
Previous wording
At March 31, 2025, we had total stockholders' equity of $893.9 million. During the three months ended March 31, 2025, total stockholders’ equity increased $3.0 million. Capital ratios remained strong with Tier 1 capital and total capital to risk weighted assets ratios of 12.90% and 14.93%, respectively, at March 31, 2025.
Current wording
At June 30, 2025, we had total stockholders' equity of $912.4 million. During the six months ended June 30, 2025, total stockholders’ equity increased $21.5 million. Capital ratios remained strong with Tier 1 capital and total capital to risk weighted assets ratios of 9.98% and 11.95%, respectively, at June 30, 2025.
Previous wording
The total dollar value of invoices purchased by our Factoring segment during the three months ended March 31, 2025 was $2.708 billion with an average invoice size of $1,808. The average transportation invoice size for the three months ended March 31, 2025 was $1,769. This compares to invoice purchase volume of $2.470 billion with an average invoice size of $1,806 and average transportation invoice size of $1,771 during the same period a year ago.
Current wording
The total dollar value of invoices purchased by our Factoring segment during the three months ended June 30, 2025 was $2.874 billion with an average invoice size of $1,693. The average transportation invoice size for the three months ended June 30, 2025 was $1,663. This compares to invoice purchase volume of $2.542 billion with an average invoice size of $1,775 and average transportation invoice size of $1,738 during the same period a year ago.
Previous wording
Our Payments segment processed 7.2 million invoices paying Carriers a total of $8.778 billion during the three months ended March 31, 2025. This compares to processed volume of 5.7 million invoices for a total of $6.380 billion during the same period a year ago.
Current wording
Our Payments segment processed 8.5 million invoices paying Carriers a total of $10.081 billion during the three months ended June 30, 2025. This compares to processed volume of 6.1 million invoices for a total of $6.688 billion during the same period a year ago.
Previous wording
On February 26, 2025, we, through our wholly-owned subsidiary TBK Bank, SSB, entered into an Agreement and Plan of Merger providing for the acquisition of GreenScreens AI, Inc. (Greenscreens.ai), a pricing solution for the logistics industry that delivers short-term freight market pricing intelligence and business insights, by TBK Bank, SSB for $140 million in cash and approximately $20 million in our common stock. The acquisition is subject to customary closing conditions, including receipt of regulatory approval, and is expected to close in the second quarter of 2025.
Current wording
On May 8, 2025, we, through our wholly-owned subsidiary TBK Bank, SSB, acquired Greenscreens AI, Inc. ("Greenscreens"), a pricing solution for the logistics industry that delivers short-term freight market pricing intelligence and business insights, for $139.1 million in cash and $12.7 million of our common stock.
Previous wording
As of March 31, 2025 we carry a separate receivable (the “Misdirected Payments”) payable by the United States Postal Service (“USPS”) arising from accounts factored to the largest over-formula advance carrier. The balance of such Misdirected Payments, net of customer reserves, was $19.4 million at March 31, 2025. This amount is separate from the acquired Over-Formula Advances. The amounts represented by this receivable were paid by the USPS directly to such customer in contravention of notices of assignment delivered to, and previously honored by, the USPS, which amount was then not remitted back to us by such customer as required. The USPS disputes their obligation to make such payment, citing purported deficiencies in the notices delivered to them. We are a party to litigation in the United States Court of Federal Claims against the USPS seeking a ruling that the USPS was obligated to make the payments represented by this receivable directly to us. Based on our legal analysis and discussions with our counsel advising us on this matter, we continue to believe it is probable that we will prevail in such action and that the USPS will have the capacity to make payment on such receivable. Consequently, we have not reserved for such balance as of March 31, 2025. The full amount of such receivable is reflected in non-performing and past due factored receivables as of March 31, 2025 in accordance with our policy. As of March 31, 2025, the entire Misdirected Payments amount was greater than 90 days past due.
Current wording
As of June 30, 2025, we carried a receivable (the “Misdirected Payments Receivable”) payable by the United States Postal Service (“USPS”) arising from accounts factored to a large carrier. The balance of such Misdirected Payments Receivable, net of customer reserves, was $19.4 million. The amounts represented by this receivable were paid by the USPS directly to such customer in contravention of notices of assignment delivered to, and previously honored by, the USPS, which amount was then not remitted back to us by such customer as required. The USPS disputed their obligation to make such payment, citing purported deficiencies in the notices delivered to them. We have been a party to litigation in the United States Court of Federal Claims against the USPS seeking a ruling that the USPS was obligated to make the payments represented by this receivable directly to us. On June 30, 2025, we reached an agreement with the USPS ("the USPS Settlement") whereby the USPS agreed to pay us $47.5 million to settle the litigation in the United States Court of Federal Claims and certain other related proceedings. Such settlement was entered into as part of a global settlement of the disputes related to the Misdirected Payments Receivable, other amounts we asserted were due to us from USPS for other balances owed to us as a result of their failure to honor our notices of assignment, and certain claims of the large carrier involved in this matter against the USPS for underpayment on certain transportation contracts in which we had a security interest. We received the full $47.5 million settlement proceeds on July 10, 2025. The proceeds of the USPS Settlement will be applied as follows:
Previous wording
The largest driver of changes in revenue at our Factoring segment, and to a lesser extent, our Payments segment, is fluctuation in the freight markets, particularly in brokered freight, which is priced largely off the spot market (a reflection of real-time balance of carrier supply and shipper demand in the market) and subject to variability in diesel prices. The softness in freight during 2023, 2024 and into the first quarter of 2025 was a combination of falling volumes and excess capacity. In recent quarters, average rates per mile have decreased and returned spot rates to levels last seen in 2019. For the spot rate market, the drop was a little higher than the drop in diesel prices over the same period. Spot rates had fallen below the cost per mile to operate for many carriers. As a result, we have observed a number of small and medium-sized trucking companies either leave the market by signing on with larger carriers or electing to sell their fleets or companies and move on to other endeavors, though the pace of these exits has slowed recently. The confluence of these circumstances has resulted in persistently low invoice prices and decreased prices of new and used equipment. Such invoice prices and prices of new and used equipment remain consistently below the years leading up to 2023. This has put pressure on the revenue of our Factoring segment as well as our equipment finance borrowers, resulting in increased equipment finance delinquencies and loan modifications. Equipment finance losses have been manageable, but continued softness in the freight markets could cause the Company to experience adverse effects on its business, financial condition, results of operations and cash flows that are not possible to predict at March 31, 2025.
Current wording
The largest driver of changes in revenue at our Factoring segment, and to a lesser extent, our Payments segment, is fluctuation in the freight markets, particularly in brokered freight, which is priced largely off the spot market (a reflection of real-time balance of carrier supply and shipper demand in the market) and subject to variability in diesel prices. The softness in freight during 2023, 2024 and into the first half of 2025 was a combination of falling volumes and excess capacity. In recent quarters, average rates per mile have decreased and returned spot rates to levels last seen in 2019. For the spot rate market, the drop was a little higher than the drop in diesel prices over the same period. Spot rates had fallen below the cost per mile to operate for many carriers. As a result, we have observed a number of small and medium-sized trucking companies either leave the market by signing on with larger carriers or electing to sell their fleets or companies and move on to other endeavors, though the pace of these exits has slowed recently. The confluence of these circumstances has resulted in persistently low invoice prices and decreased prices of new and used equipment. Such invoice prices and prices of new and used equipment remain consistently below the years leading up to 2023. This has put pressure on the revenue of our Factoring segment as well as our equipment finance borrowers, resulting in increased equipment finance delinquencies and loan modifications. Equipment finance losses have been manageable, but continued softness in the freight markets could cause the Company to experience adverse effects on its business, financial condition, results of operations and cash flows that are not possible to predict at June 30, 2025.
Previous wording
(3)Net charge-offs to average loans ratios are for the three months ended March 31, 2025 and the year ended December 31, 2024.
Current wording
(3)Net charge-offs to average loans ratios are for the six months ended June 30, 2025 and the year ended December 31, 2024.
Previous wording
We earned net income of $17 thousand for the three months ended March 31, 2025 compared to net income of $4.2 million for the three months ended March 31, 2024, a decrease of $4.2 million or 99.6%.
Current wording
We earned net income of $4.4 million for the three months ended June 30, 2025 compared to net income of $2.7 million for the three months ended June 30, 2024, an increase of $1.7 million or 60.9%.
Previous wording
We earned net interest income of $84.4 million for the three months ended March 31, 2025 compared to $86.0 million for the three months ended March 31, 2024, a decrease of $1.6 million, or 1.9%, primarily driven by the following factors.
Current wording
We earned net interest income of $88.7 million for the three months ended June 30, 2025 compared to $87.9 million for the three months ended June 30, 2024, an increase of $0.8 million, or 0.9%, primarily driven by the following factors.
Previous wording
Interest income increased $0.3 million, or 0.3%, due to changes in average interest earning assets which increased $525.4 million, or 11.1%, including an increase in average total loans of $426.3 million, or 10.5%. The average balance of our higher yielding Factoring factored receivables increased $118.1 million, or 12.5%, and we experienced an increase in average Payments factored receivables. Average Banking loans increased $305.0 million, or 10.4% due to increases in the average balances of construction, residential real estate, and mortgage warehouse loans. Interest income from our Banking loans is impacted by our lower yielding mortgage warehouse lending product. The average mortgage warehouse lending balance was $936.5 million for the three months ended March 31, 2025 compared to $633.9 million for the three months ended March 31, 2024.
Current wording
Interest income increased $2.2 million, or 2.0%, due to changes in average interest earning assets which increased $533.3 million, or 10.7%, including an increase in average total loans of $529.6 million, or 12.6%. The average balance of our higher yielding Factoring factored receivables increased $162.7 million, or 16.7%, and we experienced an increase in average Payments factored receivables. Average Banking loans increased $346.3 million, or 11.4% due to increases in the average balances of residential real estate, consumer, and mortgage warehouse loans. Interest income from our Banking loans is impacted by our lower yielding mortgage warehouse lending product. The average mortgage warehouse lending balance was $1.068 billion for the three months ended June 30, 2025 compared to $681.7 million for the three months ended June 30, 2024.
Previous wording
Interest expense increased $2.0 million, or 12.4%, primarily driven by higher average interest-bearing liabilities which increased in total period over period, including average total interest bearing deposits which increased $274.5 million, or 11.2%. The increase in interest expense was partially offset by decreased rates on our interest bearing liabilities. Average noninterest bearing demand deposits grew $280.8 million.
Current wording
Interest expense increased $1.4 million, or 7.5%, primarily driven by higher average interest-bearing liabilities which increased in total period over period, including average total interest bearing deposits which increased $135.4 million, or 5.1%. The increase in interest expense was partially offset by decreased rates on our interest bearing liabilities. Average noninterest bearing demand deposits grew $334.5 million.
Previous wording
Net interest margin decreased to 6.49% for the three months ended March 31, 2025 from 7.29% for the three months ended March 31, 2024, a decrease of 80 basis points or 11.0%.
Current wording
Net interest margin decreased to 6.43% for the three months ended June 30, 2025 from 7.07% for the three months ended June 30, 2024, a decrease of 64 basis points or 9.1%.
Previous wording
The decrease in our net interest margin was most impacted by a decrease in our yield on interest earning assets of 77 basis points to 7.87% for the three months ended March 31, 2025. This decrease was primarily driven by lower yields on loans which decreased 72 basis points to 8.37% for the period. Yield on our Banking loans decreased 63 basis points period over period driving much of the decrease in the yield on our overall loan portfolio. Our yield on Factoring factored receivables also decreased period over period while our yield on Payments factored receivables increased slightly. Further, our higher yielding Factoring and Payments factored receivables as a percentage of the total loan portfolio decreased period over period which had a downward impact on our overall loan yield. Non-loan yields were lower across the board period over period with the exception of FHLB and other restricted stock.
Current wording
The decrease in our net interest margin was most impacted by a decrease in our yield on interest earning assets of 69 basis points to 7.92% for the three months ended June 30, 2025. This decrease was primarily driven by lower yields on loans which decreased 69 basis points to 8.41% for the period. Yield on our Banking loans decreased 77 basis points period over period driving much of the decrease in the yield on our overall loan portfolio. Our yield on Factoring and Payments factored receivables also decreased period over period. That said, our higher yielding Factoring and Payments factored receivables as a percentage of the total loan portfolio increased period over period which had an upward impact on our overall loan yield. Non-loan yields were lower across the board period over period.
Previous wording
The decrease in our net interest margin was also impacted by an increase in our average cost of interest bearing liabilities of 5 basis points. This increase in average cost was caused by increased usage of higher-priced brokered time deposits period over period.
Current wording
The decrease in our net interest margin was also impacted by a decrease in our average cost of interest bearing liabilities of 9 basis points. This decrease in average cost was caused by decreased rates across our interest bearing liabilities period over period.
Previous wording
Our mortgage warehouse business has nearly self-funded for several quarters due to the servicing deposits of its customers. The average balance of such deposits was $646.1 million for the three months ended March 31, 2025. These deposits are noninterest bearing deposits on our balance sheet. Despite their classification, many of these deposits are not truly free of cost as our clients are compensated for these balances in the form of an earnings interest rebate rather than deposit interest. As a result, such noninterest bearing deposits decrease our loan yield rather than increase our deposit rates. It is important to note that our net interest margin is not affected by this arrangement. During the three months ended March 31, 2025, these deposits decreased our overall yield on loans by 52 bps and our overall cost of deposits and cost of funds would have been 49 bps and 46 bps higher, respectively.
Current wording
Our mortgage warehouse business has nearly self-funded for several quarters due to the servicing deposits of its customers. The average balance of such deposits was $781.3 million for the three months ended June 30, 2025. These deposits are noninterest bearing deposits on our balance sheet. Despite their classification, many of these deposits are not truly free of cost as our clients are compensated for these balances in the form of an earnings interest rebate rather than deposit interest. As a result, such noninterest bearing deposits decrease our loan yield rather than increase our deposit rates. It is important to note that our net interest margin is not affected by this arrangement. During the three months ended June 30, 2025, these deposits decreased our overall yield on loans by 58 bps and our overall cost of deposits and cost of funds would have been 56 bps and 51 bps higher, respectively.
Previous wording
Our ACL on loans was $36.2 million as of March 31, 2025, compared to $40.7 million as of December 31, 2024, representing an ACL to total loans ratio of 0.78% and 0.90%, respectively.
Current wording
Our ACL on loans was $38.7 million as of June 30, 2025, compared to $40.7 million as of December 31, 2024, representing an ACL to total loans ratio of 0.78% and 0.90%, respectively.
Previous wording
Our credit loss expense on loans decreased $3.6 million, or 73.2%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Current wording
Our credit loss expense on loans decreased $4.6 million, or 112.7%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Previous wording
Credit loss expense for off balance sheet credit exposures decreased$1.2 million, primarily due to changes to outstanding commitments to fund and changes to assumed loss rates period over period.
Current wording
Credit loss expense for off balance sheet credit exposures decreased$0.1 million, primarily due to changes to outstanding commitments to fund and changes to assumed loss rates period over period.
Previous wording
Noninterest income increased $2.2 million, or 14.6%. Changes in selected components of noninterest income in the above table are discussed below.
Current wording
Noninterest income increased $2.2 million, or 12.9%. Changes in selected components of noninterest income in the above table are discussed below.
Previous wording
•Other. Other noninterest income increased $2.0 million due to a $0.4 million increase in bank owned life insurance income period over period, an $0.8 million gain on sale of business assets during the three months ended March 31, 2025 that did not occur during the same period last year, and $0.8 million of rental income on the property purchased by the Company during late March of 2024.
Current wording
•Other. Other noninterest income decreased $1.6 million due to a $0.5 million gain on sale of equity securities during the three months ended June 30, 2024 that did not repeat during the current period and a $1.4 million decrease in rental income generated by the property purchased by the Company during late March of 2024 period over period. These decreases were partially offset by a $0.4 million increase in bank owned life insurance income period over period.
Previous wording
Noninterest expense increased $9.8 million, or 10.8%. Details of the more significant changes in the various components of noninterest expense are further discussed below.
Current wording
Noninterest expense increased $3.5 million, or 3.6%. Details of the more significant changes in the various components of noninterest expense are further discussed below.
Previous wording
•Salaries and Employee Benefits. Salaries and employee benefits expenses increased $4.5 million, or 8.4%. Employee salaries and payroll taxes increased $4.2 million and $0.1 million, respectively. Our average full-time equivalent employees were 1,547.7 and 1,518.3 for the three months ended March 31, 2025 and 2024, respectively. Temporary labor expense decreased $0.4 million, bonus expense increased $0.2 million and commissions expense increased $0.1 million period over period. Additionally, employee benefits expense such as 401(k) benefits match, employee insurance and stock based compensation increased $0.3 million. For the three months ended March 31, 2025, salaries and employee benefits included $1.3 million of severance driven by changes in leadership at the organization.
Current wording
•Salaries and Employee Benefits. Salaries and employee benefits expenses increased $3.9 million, or 6.9%. Employee salaries and payroll taxes increased $2.0 million and $0.1 million, respectively. Our average full-time equivalent employees were 1,576.0 and 1,571.0 for the three months ended June 30, 2025 and 2024, respectively. Temporary labor expense decreased $0.5 million, bonus expense increased $0.7 million and commissions expense increased $0.7 million period over period. Additionally, employee benefits expense such as 401(k) benefits match, employee insurance and stock based compensation decreased $0.1 million.
Previous wording
•Software Amortization. Software amortization expense increased $0.8 million, or 69.7%, primarily due to additional software assets coming on line during late 2024.
Current wording
•Software Amortization. Software amortization expense increased $1.5 million, or 111.1%, primarily due to additional software assets coming on line during late 2024 and early 2025.
Previous wording
•Other. Other noninterest expense includes loan-related expenses, training and recruiting, postage, insurance, and subscription services. Other noninterest expense increased $0.8 million, or 13.5% primarily due to a $0.7 million lease termination payment made to a tenant of the building we acquired during March 2024. There were no other significant variances in other noninterest expense period over period.
Current wording
•Other. Other noninterest expense includes loan-related expenses, training and recruiting, postage, insurance, and subscription services. Other noninterest expense increased $4.7 million, or 84.9% primarily due to a $2.0 million settlement of litigation (unrelated to the USPS Settlement) during the three months ended June 30, 2025, $1.8 million of current period lease termination payments related to the building we acquired during March 2024, and an increase of $0.7 million in loan-related expenses period over period. There were no other significant variances in other noninterest expense period over period.
Previous wording
Our reportable segments are Banking, Factoring, Payments, and Intelligence, which have been determined based upon their business processes and economic characteristics. This determination also gave consideration to the structure and management of various product lines. The Banking segment includes the operations of TBK Bank. Our Banking segment derives its revenue principally from investments in interest earning assets as well as noninterest income typical for the banking industry. The Factoring segment derives its revenue from factoring services. The Payments segment includes the operations of TBK Bank's TriumphPay division, which provides a presentment, audit, and payment solutions to Shipper, Broker, and Factor clients in the trucking industry. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of both invoices where we offer a Carrier a quickpay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and from offering Brokers the ability to settle their invoices with us on an extended term following our payment to their Carriers as an additional liquidity option for such Brokers. Our data intelligence segment was launched at the beginning of the fourth quarter of 2024 to turn the over-the-road trucking data collected through our services into actionable insights for our customers. This launch coincided with our acquisition of the assets Isometric Technologies Inc., a company that provides service and performance scoring and benchmarking capabilities to the over-the-road trucking industry. The revenue for Intelligence offerings is derived through access and subscription fees, as well as seat licenses where applicable. Prior to the fourth quarter of 2024, there were no individuals allocated specifically to our data intelligence segment and an explicit data intelligence segment did not exist. Therefore, revision of prior period segment operating results is not applicable.
Current wording
Our reportable segments are Banking, Factoring, Payments, and Intelligence, which have been determined based upon their business processes and economic characteristics. This determination also gave consideration to the structure and management of various product lines. The Banking segment includes the community banking products and services offered through TBK Bank. Our Banking segment derives its revenue principally from investments in interest earning assets as well as noninterest income typical for the banking industry. The Factoring segment derives its revenue from factoring services. The Payments segment includes the operations of TBK Bank's presentment, audit, and payment solutions to Shipper, Broker, and Factor clients in the trucking industry. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of both invoices where we offer a Carrier a quickpay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and from offering Brokers the ability to settle their invoices with us on an extended term following our payment to their Carriers as an additional liquidity option for such Brokers. Our data intelligence segment was launched at the beginning of the fourth quarter of 2024 to turn the over-the-road trucking data collected through our services into actionable insights for our customers. This launch coincided with our acquisition of the assets Isometric Technologies Inc., a company that provides service and performance scoring and benchmarking capabilities to the over-the-road trucking industry. The operations of this segment were further supplemented with our acquisition of Greenscreens AI, Inc., a pricing solution for the logistics industry that delivers short-term freight market pricing intelligence and business insights, during the quarter ended June 30, 2025. The revenue for Intelligence offerings is derived through access and subscription fees, as well as seat licenses where applicable. Prior to the fourth quarter of 2024, there were no individuals allocated specifically to our data intelligence segment and an explicit data intelligence segment did not exist. Therefore, revision of prior period segment operating results is not applicable.
Previous wording
Transactions between segments consist primarily of borrowed funds, payment network fees, and servicing fees. Intersegment interest expense is allocated to the Factoring and Payments segments as described above. Payment network fees are paid by the Factoring segment to the Payments segment for use of the payments network. Servicing fees are paid by the Payments segment to the Factoring segment for servicing factoring transactions with freight broker clients transferred from our Factoring segment to our Payments segment to align with TriumphPay's supply chain finance product offerings. Beginning prospectively on January 1, 2024, the Factoring and Payments segments began paying fees to our Banking segment for the Banking segment's execution of various banking services that benefit those segments. Credit loss expense is allocated based on the segment’s ACL determination. Noninterest income and expense directly attributable to a segment are assigned to it with various shared service costs such as human resources, accounting, finance, risk management and information technology expense assigned to the Corporate and Other category if they are not directly attributable to a segment. Other segment expense consists of various loan and card related expenses and other insignificant miscellaneous costs not specifically reviewed by the Company's chief operating decision maker. Taxes are paid on a consolidated basis and are not allocated for segment purposes.
Current wording
Transactions between segments consist primarily of borrowed funds, payment network fees, and servicing fees. Intersegment interest expense is allocated to the Factoring and Payments segments as described above. Payment network fees are paid by the Factoring segment to the Payments segment for use of the payments network. Servicing fees are paid by the Payments segment to the Factoring segment for servicing factoring transactions with freight broker clients transferred from our Factoring segment to our Payments segment to align with the supply chain finance product offerings for this business. Beginning prospectively on January 1, 2024, the Factoring and Payments segments began paying fees to our Banking segment for the Banking segment's execution of various banking services that benefit those segments. Credit loss expense is allocated based on the segment’s ACL determination. Noninterest income and expense directly attributable to a segment are assigned to it with various shared service costs such as human resources, accounting, finance, risk management and information technology expense assigned to the Corporate and Other category if they are not directly attributable to a segment. Other segment expense consists of various loan and card related expenses and other insignificant miscellaneous costs not specifically reviewed by the Company's chief operating decision maker. Taxes are paid on a consolidated basis and are not allocated for segment purposes.
Previous wording
Our Banking segment’s operating income decreased $0.6 million, or 2.1%.
Current wording
Our Banking segment’s operating income decreased $3.9 million, or 12.9%.
Previous wording
Interest income decreased $0.5 million, or 0.8%, at our Banking segment primarily as a result of decreased yields at our Banking segment in spite of increased average balances of interest earning assets. More specifically, average loans in our Banking segment, excluding intersegment loans, increased 10.4% from $2.933 billion for the three months ended March 31, 2024 to $3.238 billion for the three months ended March 31, 2025; however, this increase was more than offset by decreased yields. Intersegment interest income allocated to our Banking segment decreased period over period due to increased funding provided by our Payments segment resulting in increased intersegment interest allocation to such segment. The decrease in intersegment interest income allocated to our Banking segment was also a result of decreased intercompany borrowing rates charged to our Factoring segment driven by decreases in rates in the macroeconomy.
Current wording
Interest income decreased $2.0 million, or 3.1%, at our Banking segment primarily as a result of decreased yields at our Banking segment in spite of increased average balances of interest earning assets. More specifically, average loans in our Banking segment, excluding intersegment loans, increased 11.4% from $3.036 billion for the three months ended June 30, 2024 to $3.382 billion for the three months ended June 30, 2025; however, this increase was more than offset by decreased yields. Intersegment interest income allocated to our Banking segment decreased period over period due to increased funding provided by our Payments segment resulting in increased intersegment interest allocation to such segment. The decrease in intersegment interest income allocated to our Banking segment was also a result of decreased intercompany borrowing rates charged to our Factoring segment driven by decreases in rates in the macroeconomy.
Previous wording
Interest expense increased $2.7 million, or 20.0%, primarily driven by higher average interest-bearing liabilities which increased in total period over period, including average total interest bearing deposits which increased $274.5 million, or 11.2%. The increase in interest expense was partially offset by decreased rates on our interest bearing liabilities. That said, our Banking segment experienced an increase in average cost of interest bearing liabilities due to increased usage of higher-priced brokered time deposits period over period.
Current wording
Interest expense increased $2.1 million, or 12.6%, primarily driven by higher average interest-bearing liabilities which increased in total period over period, including average total interest bearing deposits which increased $135.4 million, or 5.1%. The increase in interest expense was partially offset by decreased rates on our interest bearing liabilities. Further, our Banking segment experienced an increased usage of higher-priced brokered time deposits period over period.
Previous wording
Credit loss expense at our Banking segment is made up of credit loss expense related to loans and credit loss expense related to off balance sheet commitments to lend. Credit loss expense related to loans was $0.6 million for the three months ended March 31, 2025 compared to credit loss expense on loans of $4.4 million for the three months ended March 31, 2024. The decrease in credit loss expense was the result of decreased specific reserves, a decrease driven by changes to the projected loss drivers and prepayment speeds that the Company forecasted over the reasonable and supportable forecast periods, and a decrease driven by changes in the volume and mix of our Banking segment's loan portfolio period over period. Such decreases were partially offset by an increase in net charge-offs period over period.
Current wording
Credit loss expense at our Banking segment is made up of credit loss expense related to loans and credit loss expense related to off balance sheet commitments to lend. Credit loss expense related to loans was $2.3 million for the three months ended June 30, 2025 compared to credit loss expense on loans of $1.9 million for the three months ended June 30, 2024. The increase in credit loss expense was the result of increased specific reserves and an increase driven by changes in the volume and mix of our Banking segment's loan portfolio period over period. Such increases were partially offset by a decrease driven by changes to the projected loss drivers and prepayment speeds that the Company forecasted over the reasonable and supportable forecast periods and a decrease driven by a decrease in net charge-offs period over period.
Previous wording
Credit loss expense for off balance sheet credit exposures decreased $0.2 million, from $0.1 million for the three months ended March 31, 2024 to a benefit of $0.1 million for the three months ended March 31, 2025, primarily due to changes to outstanding commitments to fund and changes to assumed loss rates period over period.
Current wording
Credit loss expense for off balance sheet credit exposures decreased $0.2 million, from $0.1 million of credit loss expense for the three months ended June 30, 2024 to a benefit of $0.1 million for the three months ended June 30, 2025, primarily due to changes to outstanding commitments to fund and changes to assumed loss rates period over period.
Previous wording
Noninterest income at our Banking segment increased period over period due to a $0.4 million increase in bank owned life insurance income period over period. There were no other significant changes in the components of noninterest income at our Banking segment period over period.
Current wording
Noninterest income at our Banking segment increased period over period due to a $0.8 million increase in fee income and a $0.4 million increase in bank owned life insurance income period over period. These increases were partially offset by a $0.5 million decrease in gain on sale of equity securities. There were no other significant changes in the components of noninterest income at our Banking segment period over period.
Showing the first 40 of 91 pairs. Open the source sections for the rest.
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Current report — wording carried from elsewhere
Net income available to common stockholders for the six months ended June 30, 2025 was $2.8 million, or $0.12 per diluted share, compared to net income available to common stockholders for the six months ended June 30, 2024 of $5.3 million, or $0.22 per diluted share. For the six months ended June 30, 2025, our return on average common equity was 0.66% and our return on average assets was 0.14%.
Current report — wording carried from elsewhere
For further information on the above transactions see Note 2 – Acquisitions and Divestitures in the accompanying condensed notes to the consolidated financial statements included elsewhere in this report.
Current report — wording carried from elsewhere
Our operating results heavily depend on our net interest income, which is the difference between interest income on interest earning assets, including loans and securities, and interest expense incurred on interest bearing liabilities, including deposits and other borrowed funds. Interest rate fluctuations, as well as changes in the amount and type of interest earning assets and interest bearing liabilities, combine to affect net interest income. Our net interest income is affected by changes in the amount and mix of interest earning assets and interest bearing liabilities, referred to as a “volume change.” It is also affected by changes in yields earned on interest earning assets and rates paid on interest bearing liabilities, referred to as a “rate change.”
Current report — wording carried from elsewhere
The ACL on held to maturity ("HTM") securities is estimated at each measurement date on a collective basis by major security type. At June 30, 2025 and December 31, 2024, the Company’s held to maturity securities consisted of investments in the subordinated notes of collateralized loan obligation (“CLO”) funds. Expected credit losses for these securities are estimated using a discounted cash flow methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. At June 30, 2025 and March 31, 2025, the Company carried $3.2 million and $3.2 million, respectively, of these HTM securities at amortized cost. The required ACL on these balances was $1.4 million at June 30, 2025 and $1.5 million at March 31, 2025. We recognized a benefit to credit loss expense of $0.1 million during the current quarter. Credit loss expense during the three months ended June 30, 2024 was $27 thousand. None of the overcollateralization triggers tied to the CLO securities were tripped as of June 30, 2025. Ultimately, the realized cash flows on CLO securities such as these will be driven by a variety of factors, including credit performance of the underlying loan portfolio, adjustments to the portfolio by the asset manager, and the timing of a potential call.
Current report — wording carried from elsewhere
The decrease in credit loss expense was partially offset by changes in required specific reserves. Such specific reserves increased $1.5 million during the three months ended June 30, 2025 compared to an insignificant increase during the same period a year ago. Further, changes in volume and mix of the loan portfolio resulted in credit loss expense of $1.2 million during the three months ended June 30, 2025 compared to $0.2 million of credit loss expense during the same period a year ago.
Current report — wording carried from elsewhere
Details of the changes in the various components of net income are further discussed below.
Current report — wording carried from elsewhere
The following table presents the distribution of average assets, liabilities and equity, as well as interest income and fees earned on average interest earning assets and interest expense paid on average interest bearing liabilities. Average balances and interest are inclusive of assets and deposits classified as held for sale.
Current report — wording carried from elsewhere
(1)Balance totals include respective nonaccrual assets.
Current report — wording carried from elsewhere
(2)Net interest spread is the yield on average interest earning assets less the rate on interest bearing liabilities.
Current report — wording carried from elsewhere
(3)Net interest margin is the ratio of net interest income to average interest earning assets.
Current report — wording carried from elsewhere
The following table presents loan yields earned on our loan portfolios:
Current report — wording carried from elsewhere
Interest income increased $2.5 million, or 1.2%, due to changes in average interest earning assets which increased $530.1 million, or 10.9% including an increase in average total loans of $478.7 million, or 11.6%. The average balance of our higher yielding Factoring factored receivables increased $140.6 million, or 14.7%, and we experienced an increase in average Payments factored receivables. We experienced an increase in average Banking loans of $326.1 million, or 10.9% due to increases in the average balances of construction, land development, and land, residential real estate, consumer, and mortgage warehouse loans. Interest income from our Banking loans is impacted by our lower yielding mortgage warehouse lending product. The average mortgage warehouse lending balance was $1.003 billion for the six months ended June 30, 2025 compared to $657.8 million for the six months ended June 30, 2024.
Current report — wording carried from elsewhere
Our net interest margin was impacted by a decrease in yield on our interest earning assets of 74 basis points to 7.89% for the six months ended June 30, 2025. This decrease was primarily driven by lower yields on loans which decreased 71 basis points to 8.39% for the period. Yield on our Banking loans decreased 71 basis points period over period driving much of the decrease in the yield on our overall loan portfolio. Our yield on Factoring and Payments factored receivables also decreased period over period. That said, our higher yielding Factoring and Payments factored receivables as a percentage of the total loan portfolio increased period over period which had an upward impact on our overall loan yield. Non-loan yields were lower across the board period over period.
Current report — wording carried from elsewhere
The decrease in our net interest margin was also impacted by a decrease in our average cost of interest bearing liabilities of 2 basis points. This decrease in average cost was caused by decreased rates across our interest bearing liabilities period over period.
Current report — wording carried from elsewhere
Our mortgage warehouse business has nearly self-funded for several quarters due to the servicing deposits of its customers. The average balance of such deposits was $713.7 million for the six months ended June 30, 2025. These deposits are noninterest bearing deposits on our balance sheet. Despite their classification, many of these deposits are not truly free of cost as our clients are compensated for these balances in the form of an earnings interest rebate rather than deposit interest. As a result, such noninterest bearing deposits decrease our loan yield rather than increase our deposit rates. It is important to note that our net interest margin is not affected by this arrangement. During the six months ended June 30, 2025, these deposits decreased our overall yield on loans by 55 bps and our overall cost of deposits and cost of funds would have been 52 bps and 49 bps higher, respectively.
Current report — wording carried from elsewhere
The following table shows the effects that changes in average balances (volume) and average interest rates (rate) had on the interest earned on our interest earning assets and the interest incurred on our interest bearing liabilities:
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Credit loss expense is the amount of expense that, based on our judgment, is required to maintain the allowances for credit losses (“ACL”) at an appropriate level under the current expected credit loss model. The determination of the amount of the allowance is complex and involves a high degree of judgment and subjectivity. Refer to Note 1 of the Company’s 2024 Form 10-K for detailed discussion regarding ACL methodologies for available for sale debt securities, held to maturity securities and loans held for investment.
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The following table presents the major categories of credit loss expense:
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For available for sale debt securities in an unrealized loss position, the Company evaluates the securities at each measurement date to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an ACL on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings via credit loss expense. At December 31, 2024 and June 30, 2025, the Company determined that all impaired available for sale securities experienced a decline in fair value below the amortized cost basis due to noncredit-related factors. Therefore, the Company carried no ACL at those respective dates and there was no credit loss expense recognized by the Company during the six months ended June 30, 2025. The same was true for the same period in the prior year.
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Our ACL on loans was $38.7 million as of June 30, 2025, compared to $40.7 million as of December 31, 2024, representing an ACL to total loans ratio of 0.78% and 0.90% respectively.
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The following table presents our major categories of noninterest income:
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Noninterest income increased $4.4 million, or 13.7%. Changes in selected components of noninterest income in the above table are discussed below.
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The following table presents our major categories of noninterest expense:
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Noninterest expense increased $13.3 million, or 7.1%. Details of the more significant changes in the various components of noninterest expense are further discussed below.
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•Software amortization. Software amortization increased $2.3 million, or 91.9%, primarily due to additional software assets coming on line during late 2024 and early 2025.
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The amount of income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income and the effect of changes in valuation allowances maintained against deferred tax benefits.
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Our reportable segments are Banking, Factoring, Payments, and Intelligence, which have been determined based upon their business processes and economic characteristics. This determination also gave consideration to the structure and management of various product lines. The Banking segment includes the community banking products and services offered through TBK Bank. Our Banking segment derives its revenue principally from investments in interest earning assets as well as noninterest income typical for the banking industry. The Factoring segment derives its revenue from factoring services. The Payments segment includes the operations of TBK Bank's presentment, audit, and payment solutions to Shipper, Broker, and Factor clients in the trucking industry. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. These factored receivables consist of both invoices where we offer a Carrier a quickpay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and from offering Brokers the ability to settle their invoices with us on an extended term following our payment to their Carriers as an additional liquidity option for such Brokers. Our data intelligence segment was launched at the beginning of the fourth quarter of 2024 to turn the over-the-road trucking data collected through our services into actionable insights for our customers. This launch coincided with our acquisition of the assets Isometric Technologies Inc., a company that provides service and performance scoring and benchmarking capabilities to the over-the-road trucking industry. The operations of this segment were further supplemented with our acquisition of Greenscreens AI, Inc., a pricing solution for the logistics industry that delivers short-term freight market pricing intelligence and business insights, during the quarter ended June 30, 2025. The revenue for Intelligence offerings is derived through access and subscription fees, as well as seat licenses where applicable. Prior to the fourth quarter of 2024, there were no individuals allocated specifically to our data intelligence segment and an explicit data intelligence segment did not exist. Therefore, revision of prior period segment operating results is not applicable.
Current report — wording carried from elsewhere
Prior to September 30, 2024, the Company disclosed Corporate as a reportable segment. The Company has determined that what was previously deemed the Corporate reportable segment consists of other business activities that do not represent a reportable segment, but rather, such activities belong in a Corporate and Other category as reported in the tabular disclosure below. It should be noted that such restructuring of the tabular disclosure did not result in any changes to the Company's revenue and expense allocation methodology described below. The Company restructured prior period tabular disclosures to achieve appropriate comparability.
Current report — wording carried from elsewhere
Expenses that are directly attributable to the Company's Banking, Factoring, Payments, and Intelligence segments such as, but not limited to, occupancy, salaries and benefits to employees that are fully dedicated to the segment, and certain technology costs that can be attributed to specific users or functional areas within the segment are allocated as such. The Company continues to make considerable investments in shared services that benefit the entire organization and these expenses are allocated to the Corporate and Other category. The Company allocates such expenses to the Corporate and Other category in order for the Company's chief operating decision maker and investors to have clear visibility into the operating performance of each reportable segment.
Current report — wording carried from elsewhere
We allocate intersegment interest expense to the Factoring and Payments segments based on one-month term SOFR for their funding needs. When the Payments segment is self-funded, with customer deposit funding in excess of its factored receivables, intersegment interest income is allocated based on the Federal Funds effective rate. Management believes that such intersegment interest allocations appropriately reflect the current interest rate environment and the relatively quick turn of the underlying receivables.
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Reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Changes in management structure or allocation methodologies and procedures may result in future changes to previously reported segment financial data. The accounting policies of the segments are substantially the same as those described in the “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2024 Form 10-K.
Current report — wording carried from elsewhere
Transactions between segments consist primarily of borrowed funds, payment network fees, and servicing fees. Intersegment interest expense is allocated to the Factoring and Payments segments as described above. Payment network fees are paid by the Factoring segment to the Payments segment for use of the payments network. Servicing fees are paid by the Payments segment to the Factoring segment for servicing factoring transactions with freight broker clients transferred from our Factoring segment to our Payments segment to align with the supply chain finance product offerings for this business. Beginning prospectively on January 1, 2024, the Factoring and Payments segments began paying fees to our Banking segment for the Banking segment's execution of various banking services that benefit those segments. Credit loss expense is allocated based on the segment’s ACL determination. Noninterest income and expense directly attributable to a segment are assigned to it with various shared service costs such as human resources, accounting, finance, risk management and information technology expense assigned to the Corporate and Other category if they are not directly attributable to a segment. Other segment expense consists of various loan and card related expenses and other insignificant miscellaneous costs not specifically reviewed by the Company's chief operating decision maker. Taxes are paid on a consolidated basis and are not allocated for segment purposes.
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The following tables present our primary operating results for our operating segments:
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(1) Includes revenue and expense from the Company’s holding company, which does not meet the definition of an operating segment. Also includes corporate shared service costs such as the majority of salaries and benefits expense for our executive leadership team, as well as other selling, general, and administrative shared services costs including human resources, accounting, finance, risk management and a significant amount of information technology expense.
Current report — wording carried from elsewhere
Total interest income decreased $2.6 million, or 1.9%, at our Banking segment primarily as a result of decreased yields at our Banking segment in spite of increased average balances of interest earning assets. More specifically, average loans in our Banking segment, excluding intersegment loans, increased 10.9% from $2.984 billion for the six months ended June 30, 2024 to $3.310 billion for the six months ended June 30, 2025; however, this increase was more than offset by decreased yields. Intersegment interest income allocated to our Banking segment decreased period over period due to increased funding provided by our Payments segment resulting in increased intersegment interest allocation to such segment. The decrease in intersegment interest income allocated to our Banking segment was also a result of decreased intercompany borrowing rates charged to our Factoring segment driven by decreases in rates in the macroeconomy.
Current report — wording carried from elsewhere
Net interest income at our Factoring segment increased period over period. Overall average net funds employed (“NFE”) increased 17.6% during the six months ended June 30, 2025 compared to the same period in 2024. The increase in average NFE was the result of increased invoice purchase volume in the face of decreased average invoice sizes. See further discussion under the Recent Developments: Trucking Transportation section. We maintained high concentration in transportation factoring balances, which typically generate a higher yield than our non-transportation factoring balances. This concentration, calculated based on receivables held for investment and held for sale, was at 97% at June 30, 2024 and 96% at June 30, 2025. Net interest income at our Factoring segment was also impacted by a decrease in its intersegment interest allocation charge period over period driven by lower intercompany rates consistent with lower rates in the broader macro economy.
Current report — wording carried from elsewhere
(1)Earnings (losses) before interest, taxes, depreciation, and amortization ("EBITDA") and EBITDA margin (the ratio of EBITDA to total revenue) are non-GAAP financial measures used to provide meaningful supplemental information regarding the segment's operational performance and to enhance investors' overall understanding of such financial performance.
Current report — wording carried from elsewhere
Our Payments segment's operating loss decreased $4.5 million, or 55.4%.
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We began processing network transactions during the first quarter of 2022. When a fully integrated payments customer payor receives an invoice from a fully integrated payments customer payee, we call that a “network transaction.” All network transactions are included in our payment processing volume above. These transactions are facilitated through payments platform APIs with parties on both sides of the transaction using structured data; similar to how a credit card works at a point-of-sale terminal. The integrations largely automate the process and make it cheaper, faster and safer. During the six months ended June 30, 2025, we processed 1,724,134 network invoices representing a network payment volume of $2.747 billion. During the six months ended June 30, 2024, we processed 1,322,977 network invoices representing a network payment volume of $2,168.2 million.
Current report — wording carried from elsewhere
Net interest income increased due to increased average balance of interest earning assets at our Payments segment and increased intersegment interest allocation period over period. Changes in average rates at our Payments segment were little changed period over period.
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