Slide 1: Q2 2021 Earnings Release
July 21, 2021 Q2 2021 Earnings Release
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify fo
Slide 3: Company Overview
COMPANY OVERVIEW Triumph Bancorp, Inc. (NASDAQ: TBK) is a financial holding company headquartered in Dallas, Texas, offering a diversified line of banking, payments, and factoring services through its banking subsidiary, TBK Bank, SSB. TOTAL ASSETS MARKET CAP(1) $6.0 billion $1.8 billion TOTAL LOANS
Slide 4: Q2 2021 Consolidated Results
Q2 2021 CONSOLIDATED RESULTS • Diluted earnings per share of $1.08 for the quarter, or $1.17 when adjusted for HubTran closing costs $27.2 million • Total loans held for investment decreased $253.3 million Net income to common stockholders ◦ Factored Receivables increased $189.6 million ◦ Mortgage W
Slide 5: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING By proudly serving over-the-road trucking, Triumph Business Capital has become a leading player in a large and profitable sector of the industry. Products we offer to transportation clients include: ◦ Factoring & working capital ◦ Equipment finance ◦ Fuel cards ◦ I
Slide 6: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING • Yield of 14.99% in the current quarter • Net charge-off rate of 0.04% in the current quarter On July 8, 2020, we acquired $107.5 million of factored receivables from Transport Financial Solutions. On June 2, 2018, we acquired $131.0 million of transportation fact
Slide 7: TriumphPay is the payments network for trucking
+ TriumphPay is the payments network for trucking, creating frictionless presentment, audit and payment of invoices PAGE 7
Slide 8: How Brokered Freight Payments Occur: Current Manual Process
HOW BROKERED FREIGHT PAYMENTS OCCUR: CURRENT MANUAL PROCESS Carrier Factor Broker / 3PL Email Doctype Paperwork Associate with debtor and carrier Upload Purchase Paperwork Decision Via Portal Verification Verification Phone Call Phone Call Email Doctype Associate with load Paperwork and carrier Pay
Slide 9: How Brokered Freight Payments Occur: The Payments Network for Trucking
HOW BROKERED FREIGHT PAYMENTS OCCUR: THE PAYMENTS NETWORK FOR TRUCKING Carrier Factor Broker / 3PL Factor Portal Factor Specific Submit Paperwork Carrier/Load Load Data Load Data Mapping • Doctype Submit Carrier/Load • Carrier Paperwork Mapping • Load Paperwork Load/Invoice Approve Status Mapping Ma
Slide 10: The Payments Network for Trucking: Roadmap
THE PAYMENTS NETWORK FOR TRUCKING: ROADMAP TriumphPay HubTran PRESENTMENT AUDIT PAYMENT P Carriers submitting paperwork to brokers P Ability to settle the final charges on a load P Remittance of funds from payor to carrier via ACH, wire, or check for payment Workflow tools for brokers to process P p
Slide 11: TriumphPay Integrations Are the Focus
TRIUMPHPAY INTEGRATIONS ARE THE FOCUS Brokers Factors Carriers* Payment Volume** 482 60 135K+ $13.7 Billion *Unique carriers paid in the last 12 months. **Annualized payment volume of TriumphPay in 2Q21 $13.7B. HubTran customers present an additional $13B payment opportunity. PAGE 11
Slide 12: TriumphPay Integrations Are the Focus: Key Performance Indicators
TRIUMPHPAY INTEGRATIONS ARE THE FOCUS KEY PERFORMANCE INDICATORS Top 20 Factors Represent 75% of the Factor Industry Top 25 Brokers Represent 40% of the Broker Industry 5 25 New Factors in 2Q21 New Brokers in 2Q21 PAGE 12
Slide 13: Total Addressable Market
TOTAL ADDRESSABLE MARKET FOR-HIRE TRUCKING ~$420 Billion* BROKERED FREIGHT CONTRACT SHIPPING ~$170 Billion* ~$250 Billion* In 2Q21, TriumphPay paid In 2Q21, TriumphPay paid an annualized an annualized $11.2 billion on $2.5 billion on behalf of 250 freight behalf of 36 contract broker clients shippin
Slide 14: Total Addressable Market: Payment Volume
TOTAL ADDRESSABLE MARKET: PAYMENT VOLUME *This data utilizes high-level estimates from multiple data sources including ATA industry reports (2019), FMCSA authority registrations, carrier reported numbers of power units, mercantile credit bureau reports, Broughton Capital reports and Triumph’s own po
Slide 15: Total Addressable Market: Participants
TOTAL ADDRESSABLE MARKET: PARTICIPANTS *This data utilizes high-level estimates from multiple data sources including ATA industry reports (2019), FMCSA authority registrations, carrier reported numbers of power units, mercantile credit bureau reports, Broughton Capital reports and Triumph’s own port
Slide 16: TBK Loan Portfolio Detail
TBK LOAN PORTFOLIO DETAIL REAL ESTATE(1) $ 1,134 COMMERCIAL $ 502 CONSUMER $ 12 $4,862 MORTGAGE WAREHOUSE $ 854 LIQUID CREDIT(2) $ 176 EQUIPMENT FINANCE $ 604 ASSET-BASED LENDING $ 181 FACTORING $ 1,398 Chart data labels – dollars in millions (1) Includes $1 million of 1-4 residential mortgage loans
Slide 17: TBK Deposit Success
TBK DEPOSIT SUCCESS Changes From June 30, 2019(1) to June 30, 2021: Non-interest bearing demand up $1.1 billion from 19% to 38% of deposit base Transaction deposits up 65.5% Cost of total deposits down by 82% from 1.14% to 0.20% (1) June 30, 2019 is the quarter end prior to the strategic shift we an
Slide 18: TBK Asset Quality
TBK ASSET QUALITY *1Q21 includes $41.3 million charge-off related to the TFS acquisition, $35.6 million of which was indemnified and reimbursed to us by Covenant Logistics Group, Inc. The charge-off contributed approximately 0.85%, or substantially all of the net charge-off rate for the quarter. PAG
Slide 19: COVID-19 Exposure
COVID-19 EXPOSURE Exposure to industries most impacted by COVID-19 as of June 30, 2021 INDUSTRY TOTAL EXPOSURE1 % OF GROSS LOANS LOANS IN DEFERRAL (MILLIONS) (MILLIONS) Retail $160.8 3.3% $— Office $187.6 3.9% $— Hospitality $119.8 2.5% $18.7 Health Care/Senior Care $44.5 0.9% $— Restaurants $32.4 0
Slide 20: COVID-19 Loan Deferrals
COVID-19 LOAN DEFERRALS Loans modified for borrowers impacted by the COVID-19 pandemic have decreased from the prior quarter. BALANCE OF LOANS IN % OF TOTAL LOANS DEFERRAL PORTFOLIO (Dollars in millions) 1Q21 2Q21 2Q21 2Q21 Commercial real estate $71.7 $51.6 $701.6 7% Construction, land development,
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS As of and for the Three Months Ended Key Metrics June 30, March 31, December 31, September 30, June 30, 2021 2021 2020 2020 2020 Performance ratios - annualized Return on average assets 1.84% 2.29% 2.21% 1.65% 0.99% Return on average tangible common equity (ROATCE) (1) 20.92% 26
Slide 22: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended June 30, March 31, December 31, September 30, June 30, (Dollars in thousands, except per share amounts) 2021 2021 2020 2020 2020 Net income available to common stockholders $ 27,180 $
Slide 23: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont’d) As of and for the Three Months Ended June 30, March 31, December 31, September 30, June 30, (Dollars in thousands, except per share amounts) 2021 2021 2020 2020 2020 (Dollars in thousands, except per share amoun