Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Q4 2021 Earnings Presentation
18 slides from Triumph Financial's earnings presentation, Jan 20, 2022
Slide 1: Q4 2021 Earnings Release
January 20, 2022 Q4 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: Q4 2021 Consolidated Results
PAGE 3 Q4 2021 CONSOLIDATED RESULTS • Diluted earnings per share of $1.02 for the quarter • TriumphPay: ◦ Added 3 factors4 to the TriumphPay Audit (formerly HubTran) platform in Q4 ▪ Triumph has grown factors by 14, or 25% since the announcement of the HubTran acquisition. ◦ Added 22 freight brokers
Slide 4: Triumph Business Capital Factoring
PAGE 4 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 5: Triumph Business Capital Factoring
PAGE 5 TRIUMPH BUSINESS CAPITAL FACTORING • Yield of 14.42% in the current quarter • Net charge-off rate of 0.01% 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 6: How Brokered Freight Payments Occur: Current Manual Process
PAGE 6 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 7: How Brokered Freight Payments Occur: The Payments Network for Trucking
PAGE 7 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 8: TriumphPay: Conforming Transaction
PAGE 8 TRIUMPHPAY: CONFORMING TRANSACTION Screenshot of the raw version of the first payment status update for a conforming transaction completed on the TriumphPay network. January 11, 2022.
Slide 9: TriumphPay: Integrations Are the Focus
PAGE 9 Brokers 554 Factors 69 Payment Volume** $21.0 Billion Carriers* 189K+ *Unique carriers paid since inception **Annualized payment volume of TriumphPay in 4Q21 $21.0B. TRIUMPHPAY: INTEGRATIONS ARE THE FOCUS PAYMENTS AUDITBOTH
Slide 10: TriumphPay Integrations Are the Focus: Key Performance Indicators
PAGE 10 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 Top 20 Factors TriumphPay Audit, 11 Prospects, 9 Top 25 Brokers TriumphPay Audit, 9 Both, 2 TriumphPay, 6 Prospects, 8
Slide 11: Total Addressable Market
PAGE 11 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 12: Total Addressable Market: Participants
PAGE 12 *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 13: TBK Loan Portfolio Detail
PAGE 13 TBK LOAN PORTFOLIO DETAIL Factoring $1,700 34.9% Real Estate(1) $958 19.6% C&I $393 8.1% Consumer $11 0.2%Mtg. Warehouse $770 15.8% Liquid Credit(2) $141 2.9% Equipment $621 12.7% ABL $282 5.8% Total Loans: $4.9 Billion Chart data labels – dollars in millions (1) Includes $1 million of 1-4 r
Slide 14: TBK Deposit Success
PAGE 14 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 15: TBK Asset Quality
PAGE 15 TBK ASSET QUALITY NCOs / AVERAGE LOANS* 4Q20 1Q21 2Q21 3Q21 4Q21 0.00% 0.15% 0.30% 0.45% 0.60% 0.75% 0.90% NPAs / TOTAL ASSETS 4Q20 1Q21 2Q21 3Q21 4Q21 0.0% 0.3% 0.6% 0.9% 1.2% 1.5% 1.8% 2.1% 2.4% PAST DUE / TOTAL LOANS 4Q20 1Q21 2Q21 3Q21 4Q21 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50%
Slide 16: Financial Highlights
PAGE 16 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 17: Non-GAAP Financial Reconciliation
PAGE 17 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 18: Non-GAAP Financial Reconciliation (cont'd)
PAGE 18 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