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Sep 30, 2022
Triumph Financial Q3 2022 Earnings Report
Triumph Financial reported net income to common stockholders.
Key Takeaways
Triumph Financial reported a net income to common stockholders of $15.4 million, or $0.62 per diluted share, for the third quarter of 2022. TriumphPay's invoice volume increased 6.6%, and network transaction volume increased 21.7% despite freight market headwinds.
Net income to common stockholders was $15.4 million, or $0.62 per diluted share.
TriumphPay's invoice volume increased 6.6%.
TriumphPay's network transaction volume increased 21.7%.
Schneider National, Inc. has gone live with TriumphPay's audit product.
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 company expects Q1 2023 to be softer than usual, with a possible 10% drop in volumes from Q4 numbers.
Positive Outlook
- No one is going to be surprised by a slowdown in 2023.
- The company's strategy will continue to be based on the same disciplines that have worked for them for over a decade.
- The company is in as good of a position to handle a prolonged downturn as they ever have been.
- Investments made over the past three years to grow the transactional deposit base are bearing fruit in the current interest rate environment.
- The cost of core deposits has remained low.
Challenges Ahead
- The freight market began slowing.
- The company sold non-transportation factoring and equipment lending assets in Q2, resulting in a decline in revenue of about $5 million compared to prior quarters.
- Q1 2023 is going to be softer than usual, with a possible 10% drop in volumes from Q4 numbers.
- It is possible that a meltdown in freight is yet to come.
- All factoring companies are feeling the squeeze of higher labor costs, lower invoice prices, and rising interest rates.