Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — IPO Roadshow (April 2018)
39 slides from Triumph Financial's IPO roadshow presentation, Apr 9, 2018
Slide 1: Follow-On Equity Capital Raise & Acquisitions of First Bancorp of Durango, Southern Colorado Corp. & Interstate Capital
FOLLOW-ON EQUITY CAPITAL RAISE & ACQUISITIONS OF FIRST BANCORP OF DURANGO, INC., SOUTHERN COLORADO CORP. & INTERSTATE CAPITAL CORPORATION April 2018 Dated April 9, 2018 Filed pursuant to Rule 433 Registration No. 333-223411 Supplementing the Preliminary Prospectus Supplement dated April 9, 2018 (to
Slide 2: Forward-Looking Statements
disclaimer FORWARD-LOOKING STATEMENTS This presentation contains forward‐looking statements. Any statements about our expectations, beliefs, plans, predictions, projections, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward‐looking. You ca
Slide 3: Disclaimer continued
Disclaimer continued ADDITIONAL INFORMATION ABOUT THE EQUITY OFFERING Triumph has filed a shelf registration statement on Form S-3 (including a prospectus) with the SEC which was declared effective on March 30, 2018. Before you invest in the equity offering to which this communication relates, you s
Slide 4: Agenda
AGENDA Equity Offering (Page 5) Investment Highlights (Pages 6 – 15) 2017 Highlights Q1 2018 Highlights Community Bank Acquisitions First Bancorp of Durango, Inc. Southern Colorado Corp. Interstate Capital Corp. Acquisition Strategically Compelling Acquisitions Consolidated Impact Overview of Triump
Slide 5: Equity Offering Term Sheet
Equity Offering Term Sheet PAGE Issuer Triumph Bancorp, Inc. NASDAQ Symbol TBK Offering Type Follow-On Security Common Stock Base Offering $175 Million Over-Allotment Option 15% Use of Proceeds Portion of cash consideration for pending acquisitions and general corporate purposes Lockup Period 90 day
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS Entrepreneurial financial services company that seeks to balance above average risk-adjusted financial returns with franchise value creation Leverages a highly experienced, well-respected executive leadership team that has successfully navigated multiple credit cycles Exhibitin
Slide 7: 2017 Highlights
2017 HIGHLIGHTS Diluted earnings per share of $1.81 Net income for 2017 was impacted by (i) a pre-tax gain on sale of Triumph Capital Advisors subsidiary of $20.9 million, or $10.0 million net of taxes and transaction related costs (ii) an income tax charge of $3.0 million related to the re‑measurem
Slide 8: Preliminary 1st Quarter 2018 Highlights
Preliminary 1st quarter 2018 highlights PAGE Loan Growth Preliminary Earnings Record first quarter diluted EPS of between $0.54 and $0.56 Diluted EPS includes $0.02 net benefit from the pre-tax $1.1 million gain on sale of Triumph Healthcare Finance (“THF”) and $360 thousand loss on securities and O
Slide 9: Community Bank Acquisitions
Community Bank Acquisitions Acquisition of two holding companies with three bank subsidiaries: First Bancorp of Durango, Inc. First National Bank of Durango Bank of New Mexico Southern Colorado Corp. Citizens Bank of Pagosa Springs All entities currently controlled by the Fitzgerald family $734 mill
Slide 10: Interstate Capital Corp. Acquisition
INTERSTATE CAPITAL CORP. ACQUISITION PAGE Pending acquisition of Interstate Capital Corp. represents a combination with a company and a management team that Triumph has known for years Clear cultural fit Similar focus on transportation industry Delivers additional scale in a niche in which the Compa
Slide 11: Overview of Acquisition Terms
Required Approvals Customary regulatory/other approvals; voting agreements signed with all or a majority of holders of voting shares on all transactions OVERVIEW OF acquisition TERMS PAGE Price / LTM Net Income(3) Core Deposit Premium(2) Projected TBV Delivered at Close Expected Closing Transaction
Slide 12: Strategically Compelling Acquisitions
Strategically compelling acquisitions Accelerates Triumph’s proven business strategy, pairing strong asset origination with core deposit funding PAGE Community Banking Acquiring a cohesive set of three banking franchises with similar cultures due to the management and ownership by the Fitzgerald fam
Slide 13: Consolidated Financial Impact
CONSOLIDATED FINANCIAL IMPACT Combined pro forma impact of the pending acquisitions and the announced follow-on equity offering yields attractive EPS accretion and TBV earn back period, while providing the Company sufficient capital to sustain its attractive growth profile PAGE Projected Combined Pr
Slide 14: Enhanced Combined Operations
First Bancorp of Durango, Inc. ENHANCED Combined OPERATIONS PAGE Branch Presence Provides efficient scale to drive towards our net overhead target of 3.00% Note: Financials as of and for the three months ended 12/31/2017. Quarterly metrics are annualized. Reconciliations of non-GAAP financial measur
Slide 15: Consolidated Platform
CONSOLIDATED PLATFORM PAGE TBK Bank Bank of New Mexico First National Bank of Durango Citizens Bank of Pagosa Springs Triumph Bancorp and TBK Bank Headquarters Triumph Business Development Officer ICC Business Development Officer Interstate Capital Corp. Headquarters
Slide 16: Overview of Triumph Bancorp, Inc.
Overview OF Triumph BANCORP, INC. PAGE Headquartered in Dallas, Texas Commenced operations in 2010 following the acquisition and recapitalization of Equity Bank, SSB 63 branches in Colorado, Illinois, New Mexico, Iowa, Kansas and Texas (pro forma for the pending bank acquisitions) Differentiated bus
Slide 17: Strength in Differentiation
STRENGTH IN DIFFERENTIATION Triumph Bancorp, Inc. (NASDAQ: TBK) is a financial holding company headquartered in Dallas, Texas. Triumph offers a diversified line of community banking and commercial finance products through its bank subsidiary, TBK Bank, SSB. PAGE Community Banking Full suite of depos
Slide 18: Experienced Leadership
Dan Karas – Executive Vice President, Chief Lending Officer Mr. Karas serves as chief lending officer of TBK Bank, SSB. He joined Triumph in 2012 as executive vice president - asset based lending for Triumph Commercial Finance with more than 30 years of experience in all aspects of commercial financ
Slide 19: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL As of December 31, 2017 (Dollars in Millions) PAGE Community Banking Commercial Finance Loans Held for Investment 42735 42825 42916 43008 43100 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Community Banking 1,333.94 1,321.6 1,493.4259999999999
Slide 20: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING PAGE Yield of 16.91% in the fourth quarter of 2017 Average annual charge-off rate of 0.41% over the past 3 years 3,158 factoring clients at December 31, 2017
Slide 21: Triumph's Transportation Finance Opportunity
triumph’s transportation finance opportunity PAGE Annual Gross Revenues (8% GDP) $750 Billion : 4 Million Trucks For-Hire $400 Billion : 2.6 Million Trucks Contract $225 Billion 3PLs/Broker $175 Billion Fleet Size Nbr. Carriers Nbr. Trucks 1 to 5 189,200 300,000 6 to 25 32,200 350,000 26 to 100 8,40
Slide 22: Robust Loan Growth with Strong Yields
Robust LOAN GROWTH WITH STRONG yields (Dollars in Millions) PAGE Pro forma for the pending acquisitions of First Bancorp of Durango, Inc., Southern Colorado Corp. and Interstate Capital Corp. as of 12/31/17 Defined as yield on loans after excluding loan accretion from the acquired loan portfolio. Re
Slide 23: Diversified Deposit Base
DIVERSIFIED DEPOSIT BASE (Dollars in Millions) PAGE (2) Total Deposits: $2,015.8 $2,024.3 $2,072.2 $2,012.5 $2,621.3 L/D Ratio: 100.6% 100.5% 110.8% 120.5% 107.2% (1) $3,275.0 98.6% Pro forma for the pending acquisitions of First Bancorp of Durango, Inc., Southern Colorado Corp. and Interstate Capit
Slide 24: Background and History
BACKGROUND AND HISTORY PAGE November 2010: Acquired Equity Bank, SSB November 2011: Released from all regulatory enforcement orders Acquire & Clean-up 2010 – 2011 2012 – 2014 Platform Development June 2014: Acquired Doral Healthcare Finance, now Triumph Healthcare Finance (since divested) November 2
Slide 25: Disciplined, Experienced Buyer and Seller
DISCIPLINED, EXPERIENCED Buyer and seller Experienced and disciplined acquisition and integration approach Eight acquisitions since 2015, include four whole bank acquisitions, a bank branch acquisition, an FDIC related acquisition, one commercial finance platform acquisition, and an insurance broker
Slide 26: Consistent Record of Growth
CONSISTENT RECORD OF growth (Dollars in Millions, Except per Share) PAGE TOTAL ASSETS TOTAL DEPOSITS TANGIBLE BOOK VALUE PER SHARE(1) GROSS LOANS HFI CAGR: 28.4% CAGR: 33.6% CAGR: 12.0% CAGR: 25.9% Reconciliations of non-GAAP financial measures can be found in the appendix
Slide 27: Historical Outperformance
HISTORICAL OUTPERFORMANCE PAGE US Commercial Bank data based on SNL aggregate figures. Year-to-date metrics are annualized Also known as “Net noninterest expense to average assets” Reconciliations of non-GAAP financial measures can be found in the appendix NET INTEREST MARGIN RETURN ON AVERAGE ASSET
Slide 28: Long Term Performance Goals vs Actual 2017
Long term performance goals vs Actual 2017 PAGE Return on Average Assets (“ROAA”) GAAP: 1.27% Core: 0.96% Goal: > 1.80% Net Overhead Ratio Net Interest Income to Average Assets Credit Costs Pre-Provision Net Revenue Taxes GAAP: 5.47% Core: 5.47% Goal: > 5.00% GAAP: 2.92% Core: 3.41% Goal: < 3.00% GA
Slide 29: Asset Quality
Asset quality PAGE NET CHARGE-OFFS / AVERAGE LOANS ALLL / NON-PERFORMING LOANS ALLL / TOTAL LOANS NON-PERFORMING ASSETS / TOTAL ASSETS * Loans with fair value of $95.8 million and original purchase discount of $3.4 million were acquired in the Independent Bank Group, Inc. branch acquisition, and loa
Slide 30: Appendix of Supporting Schedules
APPENDIX OF SUPPORTING SCHEDULES April 2018
Slide 31: Pro Forma Loan Portfolio
PRO FORMA LOAN PORTFOLIO PAGE MRQ Yield: 7.73% MRQ Yield: 5.25% MRQ Yield: 5.32% MRQ Yield: 8.13% Commercial Real Estate Construction & Development Farmland Commercial Factored Receivables Mortgage Warehouse & Other 1-4 Family Residential Consumer Southern CO Pro Forma Data as of 12/31/2017. Quarter
Slide 32: Pro Forma Deposit Portfolio
PRO FORMA DEPOSIT PORTFOLIO PAGE MRQ Cost: 0.67% MRQ Cost: 0.19% MRQ Cost: 0.40% MRQ Cost: 0.58% Non-Interest Bearing Demand Interest Bearing Demand Money Market Savings Certificates of Deposit IRAs Brokered Deposits Triumph Durango Southern CO Pro Forma Loans / Deposits: 107.2% Loans / Deposits: 47
Slide 33: Financial Highlights
FINANCIAL HIGHLIGHTS PAGE Reconciliations of non-GAAP financial measures can be found at the end of the presentation Asset quality ratios exclude loans held for sale
Slide 34: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE Triumph uses certain non-GAAP financial measures to provide meaningful supplemental information regarding our operational performance and to enhance investors' overall understanding of such financial performance. Metrics and non-GAAP financial reconciliation
Slide 35: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP FINANCIAL RECONCILIATION PAGE Metrics and non-GAAP financial reconciliation (cont’d)
Slide 36: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP FINANCIAL RECONCILIATION PAGE Metrics and non-GAAP financial reconciliation (cont’d)
Slide 37: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP FINANCIAL RECONCILIATION PAGE Metrics and non-GAAP financial reconciliation (cont’d)
Slide 38: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP FINANCIAL RECONCILIATION PAGE Metrics and non-GAAP financial reconciliation (cont'd) For theYear Ended For theYear Ended December 31, 2017 December 31, 2017 (Dollars in thousands, except per share amounts) GAAP Core (Dollars in thousands, except per share amounts) GAAP Core Net Interest Inc
Slide 39: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP FINANCIAL RECONCILIATION PAGE Metrics and non-GAAP financial reconciliation (cont’d)