Triumph Financial (TFIN) investor relations material

Business model and transformation

• Operates as a community bank with a focus on modernizing freight payments, auditing, and intelligence, serving both payors (brokers) and payees (carriers) in the trucking industry.

• Touches 70% of all freight transactions, auditing about 65% and paying half, creating a dense network that reduces friction and enables platform innovation for large brokers.

• Invested hundreds of millions over six years to build a scalable network, now used by major brokers like C.H. Robinson and RXO for their financial services platforms.

• Aims to embed audit, payment, and intelligence into freight workflows, targeting defensible, above-peer earnings and scalability.

• Maintains a diversified revenue stream, with core community banking generating $110 million in operating income, providing stability during freight downturns.

Market conditions and regulatory environment

• Freight industry is in a prolonged recession, with falling tonnage and excess capacity due to improperly licensed and monitored drivers.

• Regulatory enforcement on non-compliant drivers and electronic logging devices is increasing but not yet reflected in industry numbers.

• Shadow capacity from rule-bending operators keeps supply high and margins thin, prolonging the downturn.

• Government enforcement of existing laws could benefit compliant carriers, even if it raises costs.

Customer-centric reorganization and efficiency

• Recently reorganized to focus on customer-centric go-to-market strategies, moving away from product-centric teams.

• Five core products: audit, payment, liquidity solutions, digital banking, and intelligence, now aligned to deliver integrated value to carriers and brokers.

• Reorganization aims to eliminate redundancies, reduce expenses, and improve earnings per share, with ongoing cost efficiency efforts.