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Mar 31, 2024
Triumph Financial Q1 2024 Earnings Report
Reported a decrease in net income due to seasonality, credit costs, and planned investments, while TriumphPay continued to grow and gain market share.
Key Takeaways
Triumph Financial reported net income of $3.4 million, or $0.14 per diluted share, for the first quarter of 2024. The results were impacted by a freight recession, credit costs, and planned investments in initiatives like LoadPay. TriumphPay's proportion of all brokered freight reached approximately 44%.
Freight market softness continued, impacting factoring volumes and net interest income.
Credit costs were a drag on earnings, primarily due to equipment finance and construction lending growth.
Planned investments in initiatives like LoadPay increased noninterest expense.
TriumphPay's run-rate proportion of all brokered freight is approximately 44%, with progress towards 50% by the end of 2024.
Triumph Financial
Triumph Financial
Triumph Financial Revenue by Segment
Revenue by Segment
Banking Revenue
CapyFin.comFactoring Revenue
CapyFin.comPayments Revenue
CapyFin.com Forward Guidance
The first quarter was a disappointment for earnings, but a positive development in advancing our long-term vision. Unless seasonal patterns soon lead to increased activity and pricing, I do not see the seasonal benefit returning for the second quarter.
Positive Outlook
- TriumphPay added several brokers, including two midsized freight brokers and a large factor.
- TriumphPay's pipeline remains full.
- Excited about the long-term momentum being created.
- TriumphPay marches on towards its next milestone of touching 50% of all brokered freight.
- The silver lining is that this freight recession has opened doors for us that were not open in prior years.
Challenges Ahead
- Freight continues to be softer than most people predicted.
- Credit noise is a steady hum in the background.
- Earnings headwinds are real.
- Seasonality is back in a way we have not seen since before the pandemic.
- TriumphPay swung to a loss this quarter.