Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Q3 2021 Earnings Presentation
23 slides from Triumph Financial's earnings presentation, Oct 20, 2021
Slide 1: Q3 2021 Earnings Release
October 20, 2021 Q3 2021 Earnings Release Exhibit 99.2
Slide 2: Disclaimer: Forward-Looking Statements
PAGE 2 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 iden
Slide 3: Company Overview
PAGE 3 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 $6.0 billion MARKET CAP(1) $2.7 billion TOTA
Slide 4: Q3 2021 Consolidated Results
PAGE 4 Q3 2021 CONSOLIDATED RESULTS • Diluted earnings per share of $0.94 for the quarter • TriumphPay: ◦ Added 6 factors to the HubTran platform in Q3 ▪ Triumph has grown factors by 11, or 20% since the announcement of the HubTran acquisition. ◦ Added 50 brokers ▪ Added one tier 1 broker, Integrity
Slide 5: Triumph Business Capital Factoring
PAGE 5 TRIUMPH BUSINESS CAPITAL FACTORING Triumph Business Capital and Total Gross Revenue adjusted for revaluing the indemnification asset and the difference between the value of the stock issued to CVLG and the value returned in the TFS amended transaction agreement. By proudly serving over-the-ro
Slide 6: Triumph Business Capital Factoring
PAGE 6 TRIUMPH BUSINESS CAPITAL FACTORING • Yield of 13.75% in the current quarter • Net charge-off rate of 0.24% 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 transportati
Slide 7: How Brokered Freight Payments Occur: Current Manual Process
PAGE 7 Manual Process Email Paperwork Upload Paperwork Via Portal Carrier Doctype Associate with load and carrier Send Check Verification Phone Call Pay Status Call 30-45 Days Application Phone Call Phone Calls Doctype Associate with debtor and carrier Verification Phone Call Email Paperwork Pay Sta
Slide 8: How Brokered Freight Payments Occur: The Payments Network for Trucking
PAGE 8 Factor Portal Submit Paperwork Factor Specific Load Data Submit Paperwork Paperwork Status • Receive and Post Payment Approve • Doctype • Carrier • Load Funds drafted once per day Load Data Carrier/Load Mapping Load/Invoice Mapping Payment/Invoice Mapping Carrier/Load Mapping Manual Process P
Slide 9: The Payments Network for Trucking: Roadmap
PAGE 9 THE PAYMENTS NETWORK FOR TRUCKING: ROADMAP PRESENTMENT AUDIT PAYMENT TriumphPay HubTran P Carriers submitting paperwork to brokers for payment P Image capture on mobile devices P Upload in web portal P Email delivery in unstructured data format P Structured data integration into TMS, HubTran
Slide 10: TriumphPay: Integrations Are the Focus
PAGE 10 Brokers 532 Factors 66 Payment Volume** $16.8 Billion Carriers* 156K+ *Unique carriers paid in the last 12 months. **Annualized payment volume of TriumphPay in 3Q21 $16.8B. TRIUMPHPAY: INTEGRATIONS ARE THE FOCUS
Slide 11: TriumphPay Integrations Are the Focus: Key Performance Indicators
PAGE 11 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
Slide 12: Total Addressable Market
PAGE 12 FOR-HIRE TRUCKING ~$420 Billion* CONTRACT SHIPPING ~$250 Billion* BROKERED FREIGHT ~$170 Billion* *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 cred
Slide 13: Total Addressable Market: Payment Volume
PAGE 13 *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 portfolio data. TOTAL ADDRESSABLE M
Slide 14: Total Addressable Market: Participants
PAGE 14 *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 portfolio data. **Unique carriers p
Slide 15: TriumphPay Revenue Assumptions
PAGE 15 TRIUMPHPAY REVENUE ASSUMPTIONS Subscription Fee Subscription Fee Network Fee Syndication Fee FACTOR BROKER 2 – 3 bps of Total Volume 15 – 20 bps of Conforming Volume 5 – 7 bps of Total Volume 50 – 60 bps of Broker QuickPay Volume Business Model Targets: • Broker Payment Volume: $75 Billion ◦
Slide 16: TBK Loan Portfolio Detail
PAGE 16 TBK LOAN PORTFOLIO DETAIL Total Loans: $4.8 Billion Chart data labels – dollars in millions (1) Includes $2 million of 1-4 residential mortgage loans held for sale and $20 million in CRE held for sale (2) Includes $5 million of liquid credit loans held for sale Select Commentary (as of 9/30/
Slide 17: TBK Deposit Success
PAGE 17 TBK DEPOSIT SUCCESS (1) June 30, 2019 is the quarter end prior to the strategic shift we announced during the second half of 2019. *Transactional deposits defined as noninterest and interest bearing checking, money market and savings deposits. Non-interest bearing demand Interest bearing dem
Slide 18: TBK Asset Quality
PAGE 18 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 quar
Slide 19: COVID-19 Exposure
PAGE 19 COVID-19 EXPOSURE INDUSTRY TOTAL EXPOSURE1 (MILLIONS) % OF GROSS LOANS LOANS IN DEFERRAL (MILLIONS) Retail $188.6 3.9% $— Office $180.4 3.8% $— Hospitality $121.9 2.5% $— Health Care/Senior Care $42.7 0.9% $— Restaurants $31.3 0.7% $— OFFICE TOTAL EXPOSURE1 (MILLIONS) Non-owner occupied $153
Slide 20: COVID-19 Loan Deferrals
PAGE 20 COVID-19 LOAN DEFERRALS (Dollars in millions) BALANCE OF LOANS IN DEFERRAL TOTAL LOANS % OF PORTFOLIO 2Q21 3Q21 3Q21 3Q21 Commercial real estate $51.6 $30.4 $630.1 5% Construction, land development, land $1.3 $1.3 $171.8 1% 1-4 family residential $0.5 $0.5 $127.1 —% Farmland $— $— $83.0 —% C
Slide 21: Financial Highlights
PAGE 21 FINANCIAL HIGHLIGHTS 1) Reconciliations of non-GAAP financial measures can be found at the end of the presentation. Adjusted metrics exclude material gains and expenses related to acquisition-related activities, net of tax where applicable. 2) Includes discount accretion on purchased loans o
Slide 22: Non-GAAP Financial Reconciliation
PAGE 22 NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2020 2020 2020 2020 2019 Net income available to common stockholder
Slide 23: Non-GAAP Financial Reconciliation (cont'd)
PAGE 23 NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2020 2020 2020 2020 2019 Adjusted net non-interest expense