Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Q1 2022 Earnings Presentation
17 slides from Triumph Financial's earnings presentation, Apr 20, 2022
Slide 1: Q1 2022 Earnings Release
April 20, 2022 Q1 2022 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: Q1 2022 Consolidated Results
Q1 2022 CONSOLIDATED RESULTS • Diluted earnings per share of $0.93 for the quarter • TriumphPay: $23.5 million ◦ Added 3 factors to the TriumphPay platform in Q1 Net income to common stockholders ▪ Triumph has grown factors by 17, or 31% since the announcement of the HubTran acquisition. ◦ Added 4 f
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 Revenue ◦ Equipmen
Slide 5: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING • Yield of 14.16% 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 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: Integrations Are the Focus
TRIUMPHPAY: INTEGRATIONS ARE THE FOCUS Brokers Factors Carriers* Payment Volume** 558 72 209K $22.8 Billion PAYMENTS NETWORK AUDIT *Unique carriers paid since inception **Annualized payment volume of TriumphPay in 1Q22 $22.8B. PAGE 8
Slide 9: 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 30 Brokers Represent 40% of the Broker Industry* *Tier 1 broker list expanded to 30 as 5 more firms have recently crossed $500 million in freight spend. PAGE 9
Slide 10: Total Addressable Market
TOTAL ADDRESSABLE MARKET FOR-HIRE TRUCKING ~$420 Billion* BROKERED FREIGHT CONTRACT SHIPPING ~$170 Billion* ~$250 Billion* In 1Q22, TriumphPay paid In 1Q22, TriumphPay paid an annualized an annualized $19.6 billion on $3.2 billion on behalf of 277 freight behalf of 47 contract broker clients shipper
Slide 11: 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 12: TBK Loan Portfolio Detail
TBK LOAN PORTFOLIO DETAIL Select Commentary (as of 3/31/2022) • Total loans held for investment decreased $143.5 million from the previous quarter related to moving both factoring and loan assets to held-for-sale Total Loans: $4.7 Billion • Triumph Business Capital operations comprise 34% of the por
Slide 13: TBK Deposit Success
TBK DEPOSIT SUCCESS Current as of March 31, 2022 and Changes From June 30, 2019(*): Transactional Deposits*** $3.6B Transactional Transactional deposits up 74.4% Deposits Non-Interest Non-interest bearing demand up Bearing $1.2 billion from 19% to 43% of Deposits deposit base Cost of Cost of total d
Slide 14: 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 15: Financial Highlights
FINANCIAL HIGHLIGHTS As of and for the Three Months Ended Key Metrics March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Performance ratios - annualized Return on average assets 1.69% 1.77% 1.61% 1.84% 2.29% Return on average tangible common equity (ROATCE) (1) 17.02% 1
Slide 16: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2022 2021 2021 2021 2021 Net income available to common stockholders $ 23,528
Slide 17: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont’d) As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2022 2021 2021 2021 2021 Adjusted net non-interest expense to average