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Dec 31, 2022
Triumph Financial Q4 2022 Earnings Report
Triumph Financial reported net income of $16.8 million, or $0.67 per diluted share, for the fourth quarter.
Key Takeaways
Triumph Financial reported a net income available to common stockholders of $16.8 million, or $0.67 per diluted share, for Q4 2022. The company focused on its transportation businesses, with factoring and payments segments showing growth in clients, invoices, and transaction volume. TriumphPay achieved self-funding status during the quarter, contributing excess non-interest bearing deposits back to the enterprise.
Net income available to common stockholders was $16.8 million, or $0.67 per diluted share.
TriumphPay achieved self-funding status for the quarter.
Factoring segment's pretax contribution was over 20% higher than 2021.
Network transaction volume in TriumphPay increased 8.8% quarter over quarter.
Triumph Financial
Triumph Financial
Triumph Financial Revenue by Segment
Revenue by Segment
Banking Revenue
CapyFin.comFactoring Revenue
CapyFin.comPayments Revenue
CapyFin.com Forward Guidance
Triumph Financial anticipates limited balance sheet growth and a reduced share count in the next three years, with revenue growth primarily driven by transportation businesses. Enterprise expense growth is expected to slow, and TriumphPay is projected to be accretive to earnings, with a goal to improve the EBITDA margin by approximately 50% in 2023. The company also expects non-interest revenue as a percentage of total revenue to increase.
Positive Outlook
- The growth of our balance sheet will be limited and our share count will be lower than it is today.
- Revenue growth will primarily come from our transportation businesses.
- Enterprise expense growth will be materially slower than in the last three years.
- TriumphPay will be accretive to earnings.
- Non-interest revenue as a percentage of total revenue will increase.
Challenges Ahead
- The caveat to our share reduction plan would be an M&A transaction.
- In current market conditions; however, I expect our community bank loan balances may grow as we are beginning to see attractive risk adjusted lending opportunities.
- There is a natural tension between giving long term forecasts for a business that doesn’t exist yet so that investors can understand and underwrite the value proposition and allowing for the fact that some things are not yet known.
- Our forecast is to improve that by approximately 50% in 2023.
- Net earnings may be muted for a time if transportation reverses course from the last few weeks and continues to weaken, but we will still be profitable in any reasonably foreseeable circumstance and we will not change our direction or divert our focus.