Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — 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
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: Q4 2021 Consolidated Results
Q4 2021 CONSOLIDATED RESULTS • Diluted earnings per share of $1.02 for the quarter • TriumphPay: $25.8 million ◦ Added 3 factors4 to the TriumphPay Audit (formerly Net income to common stockholders HubTran) platform in Q4 ▪ Triumph has grown factors by 14, or 25% since the announcement of the HubTra
Slide 4: 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. Enterprise products we offer to Triumph transportation clients include: Business Capital ◦ Factoring & working capital
Slide 5: Triumph Business Capital Factoring
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 transportation fact
Slide 6: 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 7: 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 8: TriumphPay: Conforming Transaction
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. PAGE 8
Slide 9: TriumphPay: Integrations Are the Focus
TRIUMPHPAY: INTEGRATIONS ARE THE FOCUS Brokers Factors Carriers* Payment Volume** 554 69 189K+ $21.0 Billion PAYMENTS BOTH AUDIT *Unique carriers paid since inception **Annualized payment volume of TriumphPay in 4Q21 $21.0B. PAGE 9
Slide 10: 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 PAGE 10
Slide 11: Total Addressable Market
TOTAL ADDRESSABLE MARKET FOR-HIRE TRUCKING ~$420 Billion* BROKERED FREIGHT CONTRACT SHIPPING ~$170 Billion* ~$250 Billion* In 4Q21, TriumphPay paid In 4Q21, TriumphPay paid an annualized an annualized $18.1 billion on $2.9 billion on behalf of 279 freight behalf of 40 contract broker clients shippin
Slide 12: 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 13: TBK Loan Portfolio Detail
TBK LOAN PORTFOLIO DETAIL Select Commentary (as of 12/31/2021) • Total loans held for investment increased $84.8 million from the previous quarter • Total Loan Yield of 8.68% Total Loans: $4.9 Billion • Covid-19 deferrals remaining: $31.9 million • Triumph Business Capital operations comprise 32% of
Slide 14: TBK Deposit Success
TBK DEPOSIT SUCCESS Current as of December 31, 2021 and Changes From June 30, 2019(1): Transactional Deposits* $3.8B Transactional Transactional deposits up 82.2% Deposits Non-Interest Non-interest bearing demand up Bearing $1.2 billion from 19% to 41% of Deposits deposit base Cost of Cost of total
Slide 15: 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 16: Financial Highlights
FINANCIAL HIGHLIGHTS As of and for the Three Months Ended Key Metrics December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 Performance ratios - annualized Return on average assets 1.77% 1.61% 1.84% 2.29% 2.21% Return on average tangible common equity (ROATCE) (1) 19.41
Slide 17: Non-GAAP Financial Reconciliation
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) 2021 2021 2021 2021 2020 Net income available to common stockholders $ 25,8
Slide 18: Non-GAAP Financial Reconciliation
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) 2021 2021 2021 2021 2020 Adjusted net non-interest expense to aver