• ITVI.USA
    13,795.070
    81.410
    0.6%
  • OTRI.USA
    26.560
    -0.120
    -0.4%
  • OTVI.USA
    13,740.380
    64.000
    0.5%
  • TLT.USA
    2.720
    -0.060
    -2.2%
  • TSTOPVRPM.ATLPHL
    2.670
    0.130
    5.1%
  • TSTOPVRPM.CHIATL
    2.930
    0.280
    10.6%
  • TSTOPVRPM.DALLAX
    1.320
    -0.020
    -1.5%
  • TSTOPVRPM.LAXDAL
    3.040
    0.050
    1.7%
  • TSTOPVRPM.PHLCHI
    1.740
    0.050
    3%
  • TSTOPVRPM.LAXSEA
    3.210
    0.000
    0%
  • WAIT.USA
    108.000
    5.000
    4.9%
  • ITVI.USA
    13,795.070
    81.410
    0.6%
  • OTRI.USA
    26.560
    -0.120
    -0.4%
  • OTVI.USA
    13,740.380
    64.000
    0.5%
  • TLT.USA
    2.720
    -0.060
    -2.2%
  • TSTOPVRPM.ATLPHL
    2.670
    0.130
    5.1%
  • TSTOPVRPM.CHIATL
    2.930
    0.280
    10.6%
  • TSTOPVRPM.DALLAX
    1.320
    -0.020
    -1.5%
  • TSTOPVRPM.LAXDAL
    3.040
    0.050
    1.7%
  • TSTOPVRPM.PHLCHI
    1.740
    0.050
    3%
  • TSTOPVRPM.LAXSEA
    3.210
    0.000
    0%
  • WAIT.USA
    108.000
    5.000
    4.9%
Company earningsNews

Triumph Bancorp takes coronavirus loss, gets out of insurance premium financing

In first-quarter 2020 earnings released after markets closed Monday, Triumph Bancorp (NASDAQ: TBK) reported a net loss to common shareholders of $4.5 million or diluted losses per share of 18 cents, lower than the Street’s expectations of earnings per share of 24 cents.

The bank said that due to worsening economic conditions, it recorded $20.3 million of total credit loss expense; $10.5 million was directly attributable to the impact of COVID-19.

In the first quarter, Triumph bought back $35.6 million worth of stock, completing the $50 million stock repurchase program that its board had authorized in October.

Triumph announced that it had agreed to sell Triumph Premium Finance, which issues loans to cover the borrower’s insurance premium costs, transferring $98 million of loans to “assets held for sale.”

As the yield curve flattened further in the first quarter of 2020, Triumph’s net interest margin (NIM) compressed to 5.63% from 5.72% in the fourth quarter of 2019.

Total loans held for investment increased $126 million, or 3%, to $4.321 billion.

TriumphPay, the trucking carrier payments business, has grown dramatically over the past year. In the first quarter of 2020, TriumphPay processed 504,250 invoices for a total of $530.8 million, compared with 114,066 invoices worth $141 million in the first quarter of 2019.

The total dollar value of invoices purchased by Triumph Business Capital for the first quarter was $1.451 billion, with an average invoice size of $1,651. The transportation average invoice size for the quarter was $1,481.

Triumph’s asset quality deteriorated as the macroeconomic backdrop weakened. Nonperforming assets — defined as loans for which principal or payments are overdue by 90 days — ticked up 22 basis points quarter-on-quarter to 1.09% of total assets.

The ratio of past due to total loans increased to 1.99% at March 31, 2020, from 1.74% at Dec. 31, 2019 (these numbers have been updated relative to past releases after Triumph changed its reporting to be more in line with industry peers).

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John Paul Hampstead, Director, Passport Research

John Paul conducts research on multimodal freight markets and holds a Ph.D. in English literature from the University of Michigan. Prior to building a research team at FreightWaves, JP spent two years on the editorial side covering trucking markets, freight brokerage, and M&A.

2 Comments

  1. Triumph are a good company and go above and beyond all the time for us.. We use both their Triumph factoring and their Triumph Pay services with Ascend TMS and it’s the best thing ever for us. Money comes in to us the day we deliver the load in AscendTMS and all 3rd party carrier payments are processed automatically when we say so. They share the quick pay take with us 50/50 even though they provide all the payment tech for free.

    We’ve managed to halve our accounting team since Ascend TMS started the Triumph services to us in our TMS about a year ago.

    I honestly recommend them to everyone I meet and know in the biz. They literally handle ALL the AR and AP stuff now for us. I would never go back to the old way of doing things. It seems so stupid how we used to do stuff when I think about it lol

    If your TMS supports them get it setup. Triumph is awesome.

    Keep it up guys!!! 👍👍👍

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