Why Triumph Bancorp Inc (NASDAQ: TBK) stock is going gangbusters today

Free $100 Forex No-Deposit Bonus

Triumph Bancorp Inc (NASDAQ: TBK) stock surged over 16.4% on 21st July, 2020 (As of  12:19 pm GMT-4; Source: Google finance) post solid second quarter of 2020 performance. The firm’s Non-interest-bearing deposits surged 275 million to 437 million as their focus on deposit gathering at the end of the second quarter in 2019 paid off. Non-interest-bearing deposits as a percentage of total deposits are now 28% of total deposits which is a significant increase from a year ago. The group’s net income reached 13.4 million or $0.56 per diluted share.

The firm’s mortgage performed well with 69.8 million in deposit growth in the second quarter, and expects July and August volumes to remain very high. The firm is also seeing early signs of a recovery late during the second quarter of 2020.  Their factoring business in June 2020 saw total invoice purchased volumes return to normal levels but even surpassed June 2019 levels. Over 20% of the firm’s Q1 clients stopped submitting invoices altogether during April and May, but witnessed a solid rebound in June both in terms of the number of clients against submitting invoices but also in the terms of the monthly average invoice amounts. Overall the firm sees transportation factoring portfolio to continue to be their most profitable and fastest-growing line of business. As a result of its growth, they forecast their margin to expand from Q2 irrespective of the rate environment over the next 12 months. As per TriumphPay processed 767,000 invoices paying 51,000 distinct carriers. Payments processed rose 26% yoy to 667 million, against the prior quarter which is a 295% increase from Q2 of 2019. TriumphPay’s annual run rate payment volume as of June was 3.1 billion. This platform expects more prospects to come over the next six to nine months. TriumphPay is forecasted to reach profitability in the back half of 2021

The firm increased its allowance for credit loss or ACL to 54.6 million or 1.24% of loans held for investment. ACL ratio is 1.77% of total loans when excluding PPP loans, factored receivables and mortgage warehouse balances. On the loan portfolio, the firm faced a charge-offs of 1.1 million or 2 basis points of average loans while a rise in specific reserves of 1.7 million. Past due loans decreased by 49 basis points from Q1 to 1.5% of total loans and the ratio of non-performing loans was relatively unchanged.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.