Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — IPO Roadshow (November 2019)
33 slides from Triumph Financial's IPO roadshow presentation, Nov 21, 2019
Slide 1: Fixed Income Investor Presentation November 2019
Fixed Income Investor Presentation November 2019 Fixed Income Investor Presentation November 2019 Dated November 21, 2019 Filed pursuant to Rule 433 Registration No. 333-223411 Supplementing the Preliminary Prospectus Supplement dated November 21, 2019 (to Prospectus dated March 30, 2018)
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements. Any statements about Triumph Bancorp, Inc.’s (“Triumph,” “TBK,” “we,” “us” or “our”) expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical fact
Slide 3: Preliminary Term Sheet
PRELIMINARY TERM SHEET Issuer (Exchange: Ticker) Security Offered Current Security Rating1 Offering Type Term Optional Redemption Special Redemption Coupon Frequency Covenants Use of Proceeds Sole Book-Running Manager Triumph Bancorp, Inc. (Nasdaq: TBK) Holding company subordinated debt BBB- by Krol
Slide 4: Corporate Overview
Corporate Overview 4
Slide 5: Key Credit Investor Highlights
KEY CREDIT INVESTOR HIGHLIGHTS PAGE 1 Please refer to non-U.S. GAAP reconciliation in appendix. Differentiated Business Model Combination of community bank and commercial finance lending, supported by core deposit funding, produces top decile net interest margins Deep expertise in transportation sec
Slide 6: Company Overview
COMPANY OVERVIEW PAG PAGE E Loans by State1 as of September 30, 2019 27% Texas 23% Colorado 1% Kansas 7% Iowa 14% Illinois 4% New Mexico 1 States with a physical branch presence. Data is based on the domicile of the borrower. Excludes factored receivables. 61 Total Branches 37 in Colorado 15 in Illi
Slide 7: Loan Portfolio
LOAN PORTFOLIO PAGEPAGE Total Loans1 Community Banking Focused on core deposit generation and business lending in the communities we serve Commercial Finance Factoring, asset based lending, and equipment finance produce top tier return on assets National Lending Mortgage warehouse to provide portfol
Slide 8: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL PAGEPAGE Community Banking 53% of Total Portfolio National Lending 17% of Total Portfolio Commercial Finance 30% of Total Portfolio $2,211.2 $729.6 $1,276.1 1 Includes $4.5 million of mortgage loans held for sale. 2 Includes $3.0 million of liquid credit loans held for sale. No
Slide 9: Transportation Finance
TRANSPORTATION FINANCE PAGE 1 Gross transportation revenue consists of factoring revenue from transportation clients, interest and fees from commercial loans to borrowers in transportation industries, transportation related insurance commissions, and revenue from TriumphPay. Total gross revenue cons
Slide 10: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING PAGE PAGE Yield of 18.23% in the third quarter of 2019 Average annual charge-off rate of 0.36% over the past 3 years 6,471 factoring clients at September 30, 2019 1 On June 2, 2018, we acquired $131.0 million of transportation factoring assets via the acquisition o
Slide 11: Carrier Payment Platform
CARRIER PAYMENT PLATFORM PAGE 13 Invoice and Payment Trends Clients on Platform
Slide 12: Strategic Focus
STRATEGIC FOCUS PAGE 6 Leverage our Strengths in Transportation Focus resources on growing our strongest businesses (transportation finance) Pursue enterprise relationships across our transportation lines of business Accelerate investment in product extensions (insurance, bank accounts, fuel, data)
Slide 13: Financial Overview
Financial Overview 15
Slide 14: Q3 2019 Results and Recent Developments
Q3 2019 RESULTS AND RECENT DEVELOPMENTS PAGE Diluted earnings per share of $0.56 for the quarter Total loans held for investment portfolio growth of $373.5 million Diversified loan growth, including $35.1 million in community banking, $89.0 million in commercial finance, and $249.4 million in nation
Slide 15: Long Term Performance Goals vs Actual
PAPAGE GE NET INTEREST INCOME TO AVERAGE ASSETS Q3 5.31% Goal 6.00 - 6.50% NET OVERHEAD RATIO Q3 3.64% Goal 3.00 - 3.50% 1 Please refer to non-U.S. GAAP reconciliation in appendix. Note: Annualized performance metrics presented are for the three months ended September 30, 2019. LONG TERM PERFORMANCE
Slide 16: Strong Earnings Performance
STRONG EARNINGS PERFORMANCE 1 Please refer to non-U.S. GAAP reconciliation in appendix. Note: Chart data labels – dollars in millions PAGE Net Income To Common Stockholders 1
Slide 17: Profitability Metrics
PROFITABILITY METRICS 1 Please refer to non-U.S. GAAP reconciliation in appendix. PAGE 19 Return on Assets (%) Return on Equity (%) Net Interest Margin (%) Efficiency Ratio (%) 1 1 1 Adjusted Adjusted
Slide 18: Loan Yields and Net Interest Margin
LOAN YIELDS AND NET INTEREST MARGIN 1 Includes discount accretion on purchased loans of $1.3mm in 3Q18, $1.4mm in 4Q18, $1.6mm in 1Q19, $1.3mm in 2Q19 and $1.2mm in 3Q19. 2 SNL U.S. Bank $1-$5B: Includes all Major Exchange (NYSE, NYSE MKT, NASDAQ) Banks in SNL’s coverage universe with $1B to $5B in
Slide 19: Current Capital Position
CURRENT CAPITAL POSITION Common Equity Ratios (%) Tier 1 Leverage Ratio (%) Total Risk Based Ratio (%) Tier 1 Risk-Based Ratio (%) 1 Please refer to non-U.S. GAAP reconciliation in appendix. Note: Well capitalized levels as determined by federal regulations. Well Capitalized: 5.00% Well Capitalized:
Slide 20: Pro Forma Capital Ratios
PRO FORMA CAPITAL RATIOS Pro forma bars represent TBK’s capital ratios pro forma for $35 million in subordinated debt raised as of September 30, 2019 1 Please refer to non-U.S. GAAP reconciliation in appendix. Note: Net cash proceeds of $34.0 million (after underwriting discounts) is assumed to carr
Slide 21: Asset Quality
ASSET QUALITY PAGE 23 NPAs / Total Assets (%) ALL / Total Loans (%) NCOs / Average Loans (%)
Slide 22: Deposit Mix
DEPOSIT MIX PAGPAGE E 1 Other interest bearing deposits include interest bearing deposits, individual retirement, money market and savings accounts. 2 Deposits totaling $601.2 million and $73.5 million were assumed on September 8, 2018 in the First Bancorp of Durango, Inc. and Southern Colorado Corp
Slide 23: Appendix
Appendix 25
Slide 24: Financial Highlights
FINANCIAL HIGHLIGHTS PAGE 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 merger and acquisition-related activities, net of tax where applicable. 2 Includes discount accretion on purchased l
Slide 25: Kroll Rating as of October 28, 2019
KROLL RATING AS OF OCTOBER 28, 2019 TBK’s Kroll ratings reflect an overall strong credit profile Source: Kroll Bond Rating Agency 1 Kroll Ratings Scale: https://www.krollbondratings.com/ratings/methodologies/rating-scales 2 A rating is not a recommendation to buy, sell or hold securities. Ratings ma
Slide 26: Historical Interest Coverage
HISTORICAL INTEREST COVERAGE Note: All dollars in thousands. 1 Interest rate of 4.75% for illustrative purposes only. PAGE
Slide 27: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE Non-GAAP Financial Reconciliation (Dollars in thousands) For the year ended 12/31, For the nine months ended, 2014 2015 2016 2017 2018 9/30/2018 9/30/2019 Net Income $19,789 $29,133 $20,700 $36,220 $51,708 $33,623 $41,835 Dividends on Preferred Stock (780) (780
Slide 28: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE
Slide 29: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE
Slide 30: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE
Slide 31: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE
Slide 32: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE
Slide 33: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PPAGE AGE Note: Ratios may not calculate due to rounding.