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Triad Business Bank's 2024 Financial Overview

On February 25, 2025, Triad Business Bank (OTC Pink: "TBBC") released its financial results for the year 2024, showcasing significant efforts to enhance its operational framework amidst challenging market conditions. This article highlights the key financial indicators, operational improvements, and strategic initiatives undertaken by the bank.

Fourth Quarter Highlights

In the fourth quarter of 2024, Triad Business Bank reported a provision for credit loss expense of $1.7 million. This provision included a crucial establishment of a $1.1 million reserve for a corporate bond that had lost its investment grade status. Following the provisions, the bank recorded a net loss of $1.4 million for the quarter. Ramsey Hamadi, CEO of Triad Business Bank, explained that due to uncertainties surrounding the creditworthiness of the corporate bond, the reserve was necessary to safeguard the bank's capital base.

On a positive note, the bank's total regulatory capital stood strong at $63.1 million, equating to 12.78% of risk-weighted assets at the end of the year. Notably, Triad Business Bank also registered a $777,000 increase in core operating income in comparison to the same quarter in 2023, marking a clear improvement from a core operating loss of $478,000 in Q4 2023 to core operating income of $299,000 in Q4 2024.

The bank attributed this improvement to several successful initiatives, including reducing operating expenses, enhancing sales strategies, solidifying core deposits, and expanding profit margins. As part of a measured effort to cut costs, noninterest expense decreased by $368,000 for the quarter compared to the prior year, primarily driven by a reduction in employee compensation costs and the reduction of director compensation.

Annual Performance Comparison

For the entire fiscal year, Triad Business Bank recorded a net loss of $2.8 million, a notable improvement from the $4.3 million loss reported in 2023. This translated into a loss of $(0.38) per diluted share, compared to $(0.65) in the previous year. Additionally, the core operating loss for the year contracted to $510,000, a significant reduction from the $1.4 million loss in the prior year.

Total net interest income for 2024 rose to $11.2 million, up from $10.6 million in 2023, showcasing the bank's ability to grow its interest income effectively. The increase in interest income was largely attributed to growth in average loans, which surged by $53.1 million to $363.2 million,
and an increase in the weighted average yield on loans that reached 6.10%, compared to 5.51% for the previous year.

Financial Strategy and Future Outlook

In terms of liabilities, total assets recorded an increase of $14 million, rising from $511.2 million in 2023 to $525.2 million in 2024. Despite a slight decline in deposits, the bank's commitment to enhancing its loan portfolio remained steadfast.

The bank also focused on risk management, with no non-accrual loans noted by year-end—indicative of effective credit risk mitigation strategies. The allowance for credit losses on loans increased to $4.1 million, maintaining a solid reserve against potential future defaults.

Looking ahead, the overall financial outlook remains cautiously optimistic. With the Federal Reserve signaling potential further rate cuts, Triad Business Bank anticipates a gradual improvement in net interest margins over time. The bank's commitment to operational excellence and strategic enhancements continues to guide its efforts toward sustainable growth in the banking sector.

Conclusion

Triad Business Bank's 2024 financial results underscore a roadmap towards recovery and growth amid persistent economic challenges. The bank's focus on improving key performance areas, increasing both regulatory capital and income figures, demonstrates a promising trajectory as it serves the needs of small and medium-sized enterprises in a competitive financial landscape. As the institution advances, its ability to adapt and optimize operational strategies will be crucial to its success in the years to come.