Triumph Financial reports Q3 EPS 19c, consensus 18c

Reports Q3 revenue $106.2M, consensus $107.3M. Reports Q3 tangible book value per share $25.22. Reports Q3 CET1 capital ratio 11.85%. Reports Q3 net charge-offs .08%. The company said, “We don’t give forward guidance. We do give investors near-term guidance on expenses, because that is something we largely control. We expect expenses for Q4 to be below $97 million once again. One caveat I will add to that – it is possible we will negotiate an exit with some of the tenants in our recently acquired headquarters building to accommodate our future occupancy needs. That could show up as a one-time item next quarter. The other general piece of guidance I will give relates to Q1 2025. The freight market is soft right now. Catastrophic weather events and geopolitics will add volatility, but they alone will not be a permanent fix for the supply/demand imbalance in the market. I expect seasonality to make it softer in Q1. As a reminder, we typically see a reduction in factoring volumes in the first quarter of somewhere between 4% and 6%. At the same time, we will fight expense pressures that come up in Q1 every year tied to compensation resets, health insurance premium changes, etc. In other words, I do not expect Q1 2025 earnings to be great. We have options to make them better, but each of those would involve taking undue risk or pulling back on the investments we need to make in order to create the network we want to build. We will not do that. We will stick to the long-term plan. I know some investors with shorter investment horizons might not like that – my job is not to make it easy to like what I say, my job is to make sure you never have reason to doubt what I say.”