Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — IPO Roadshow (July 2017)
35 slides from Triumph Financial's IPO roadshow presentation, Jul 26, 2017
Slide 1: Follow-On Equity Capital Raise & Acquisition of Valley Bancorp, Inc.
Filed pursuant to Rule 433 Registration No. 333-213169 Supplementing the Preliminary Prospectus Supplement dated July 26, 2017(to Prospectus dated) September 23, 2016 FOLLOW-ON EQUITY CAPITAL RAISE & ACQUISITION OF VALLEY BANCORP, INC. July 26, 2017
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: Agenda
AGENDAInc. Bancorp, Equity (Pages Offering 13 – 26) (Page Appendix 4) Investment of Supporting Highlights Schedules (Pages(Pages 5 – 12)27 Q2– 2017 35) age Highlights 3 Page 3Colorado Branch Acquisition Valley Bancorp, Inc. Acquisition Consolidated Impact Overview of Triumph
Slide 4: Equity Offering Term Sheet
EQUITY OFFERING TERM SHEET Issuer Triumph Bancorp, Inc. NASDAQ Symbol TBK Offering Type Follow-On Security Common Stock Base Offering $50 Million Option 15% Use of Proceeds Portion of cash consideration for Valley acquisition and general corporate purposes Lockup Period 90 Days Joint Bookrunners Ste
Slide 5: Investment Highlights
INVESTMENT economic well-respected Company’s deposit funding continuum lines executive Page HIGHLIGHTS of business (start-ups 5 leadership as to reflected Entrepreneurial mature team in that businesses) 2Q’17 hasfinancial successfully financials through services results anavigated differentiated com
Slide 6: Recent Developments: Q2 2017 Highlights
RECENT loan to COMMERCIAL Assets(1) 1.36% portfolio of (1) DEVELOPMENTS: loans Reconciliations growth NIM fromofFINANCE 1.80% $88.0ofin million Q2 non-GAAP 1Q’17 LOAN 2017(12.3%) Net HIGHLIGHTS GROWTH financial interest – Commercial margin 6.16% measures Diluted increased 12.3% real can EPSestate Ne
Slide 7: Colorado Branch Acquisition Overview and Strategic Rationale
COLORADO conversion our the Complementary data determined Northern long as ofterm June in based Front early performance BRANCH 30, agricultural on2017. Range Q4average 2017 Actual ACQUISITION Doubles goals lending Estimated branch deposit 0.38% our franchise deposits position $7 premium cost STRATEG
Slide 8: Valley Bancorp Acquisition Overview and Strategic Rationale
VALLEY bank; ratio growth Significant Advances nomarkets trust BANCORP revenue orour ofmortgage the long synergies ACQUISITION Northern term operations performance identified Front S-Corp Range OVERVIEW butgoals not Opportunity formodeled 0.10% tax Founded purposes cost LOANS to of create inSTRATEGI
Slide 9: Valley Bancorp Acquisition: Terms
VALLEY Deposit holders sales other of comprehensive of OREO, Premium(2) BANCORP >80%securities of voting 5.8% income ACQUISITION: and Price Required (“AOCI”). other / TBV assets, Approvals 1.54x TERMS AOCIandProjected was normalized shares Transaction ($0.3 Expected TBV million for Value Delivered 3
Slide 10: Consolidated Financial Impact
CONSOLIDATED period, <1.5% Based during the appendix Capital 4Q17. Projected while (3) providing Projected Ratio 2019 to FINANCIAL be ofstandalone +4% 13.0% capital the company accretive (1) ratios IMPACT Triumph Includes as sufficient to of earnings 4Q17. impact earnings Combined capital in Equity
Slide 11: Enhanced Franchise Pro Forma Operations
ENHANCED Range 5.0% 101.8% 0.53% Synergies RBC(4) three franchise of profile, capitalized 4Q17 months 5.8% Branches MRQ decreasing pro 13.9% Creates and (3) following 7.5% forma Overhead ended Valley (0.87%) PRO 13.0% 5aBalance meaningful 5while LTD FORMA 6/30/2017. 6Bancorp, equity 16 Asset (0.09%)
Slide 12: Consolidated Platform
CONSOLIDATED PLATFORM Page 12
Slide 13: Overview of Triumph Bancorp, Inc.
OVERVIEW acquisition acquisitions) of 6.49% Colorado with year financial for60% more TBV $264 5.91% community detail measures ROAA earnback(3) million and Differentiated OF 5.78% Page recapitalization TRIUMPH 1.89% incan banking 13 loans Successfully CET1 be1.00% found and business /BANCORP, Ratio 4
Slide 14: Strength in Differentiation
STRENGTH commercial lending finance Differentiated businessWe including model focus finance IN Model than DIFFERENTIATION on CREproducts other what Focus Minimal we banks onthrough know: core consumer ourdeposit executives size itsTriumph bank Executive lending funding subsidiary, leading Bancorp, a
Slide 15: Experienced Leadership
EXPERIENCED Graft led focused President of SSB received Triumph science Executive attorney magna Triumph business the Prior served cum acquisition in on with ain and Finance Vice to bachelor distressed administration 2012 Bancorp, laude, as that, the Chief the President as firm LEADERSHIP Ms. in of
Slide 16: Loan Portfolio Detail
LOAN1-4 120.3 $1,493.4 ASSET PORTFOLIO BASED 35% Family 65%LENDING Residential Commercial DETAIL $$188.3 As 101.8 Finance of (GENERAL) June Farmland 37% 30, 2017 27% $ 136.3 ASSET (Dollars 4% 9% COMMERCIAL BASED 23% in Millions) FACTORED LENDING Community Agriculture RECEIVABLES $ 68.6Banking $(HEAL
Slide 17: Triumph Business Capital Factoring
TRIUMPH past Total of 200,000 3$100,000 years$1,300 BUSINESS 2,690 1,000 factoring 150,000 $0CAPITAL 500$1,100 clients Total Average Purchases FACTORING at June 30, Number Average 2017 Client $700,000 100,000 Number Portfolio $900 4,000 of Clients Mix 50,000 ds)83% $600,000 500,000 $700 Transportati
Slide 18: Triumph Business Capital: Addressable Market
TRIUMPH Billion 189,200 Annual All and 3Triumph?s PL?s (Target Revenue 300,000 19,500 BUSINESS market own Nbr. 6175 toportfolio 25 3between *This PL?s CAPITAL: 32,200 data $data Billions fleet 350,000 utilizes Triumph ~$40 sizes Inactive 26 BILLION high-level ofpurchases to 1 and 100 5,300 100 8,400
Slide 19: Robust Loan Growth with Strong Yields
ROBUST $68.6 $1,000 Community Bancorp, 6/30/17 $219.9 6.00% (3) Inc. LOAN Defined Banking $24.0 acquired $237.5 GROWTH $23.2 asFactored $1,766.0 yield $461 $188.3 on million WITH Receivables $1,493.4 loans $2,000 STRONG inafter loans $1,321.9 $27.6 excluding Equipment through YIELDS 8.00% $1,333.9 l
Slide 20: Diversified Deposit Base
DIVERSIFIED 1.40% $806.6 Bearing branch $2,500 acquisition $829.0 Deposits $84.6 $795.6 DEPOSIT Certificates as1.20% of 0.40% 6/30/17 BASE $2,000 $500 of (2) Deposit (Dollars $498.6 $84.6 Consists Brokered $850.2 0.20% in Millions) of the $68.1 $382.0 Deposits following Total $68.1 $381.0 Cost Depos
Slide 21: Background and Development: Transformation History
BACKGROUND DEVELOPMENT Commercial National Insurance capital ColoEast gain acquisition onMarch sale Bank, Bankshares, Group, ofof Finance, Valley 2015: $21 nowInc., AND TRANSFORMATION million Acquired operating Bancorp, an Inc., anHISTORY asset insurance June parent Doral based as Inc., 2017: the of
Slide 22: Disciplined, Experienced Acquiror
DISCIPLINED, branch Bancorp, 23, Commercial Kansas million $793 20172017 million Page transaction, $653 inBank Inc. loans 22September million in $314 Branch deposits Commercial EXPERIENCED an million inFDIC Transaction deposits 1, Advance 2016 inrelated Finance assets(1) Dallas Two Business ACQUIROR
Slide 23: Consistent Record of Growth
CONSISTENT 6/30/17 Reconciliations 2013 2014 RECORD of non-GAAP 2015 2016 OF GROWTH 6/30/17 financialTotal measures (Dollars Deposits can in Millions, Tangible be found Except Book in the Value appendix per Share) Per Share(1) Page Total 23Assets $2,016 Gross $2,072 Loans $14.20 HFI$12.79 $2,837$12.
Slide 24: Historical Outperformance
HISTORICAL 2016 2015 8.37% annualized YTD 2016 10.00% YTD 6/30/17 (1) Also OUTPERFORMANCE 8.63% 6/30/17 TBK known 5.00% US TBK asCommercial 0.00% ?Net US Commercial non-interest 2013 (Dollars Banks 2014 Banks 2015 expense in $3-$5 Millions) 2016 $3-$5 Billion to YTD average Billion NET RETURN NET 6/
Slide 25: Long Term Performance Goals vs Actual
LONG 2.42% Assets exclude the appendix GAAP: (?ROAA?) TERM material Page PERFORMANCE 0.21% gains GAAP: 25 GAAP: and 1.42% expenses 0.79% Core: GOALS associated Core: 1.42% VS 5.68% ACTUAL Goal: with Core: merger >3.26% Q21.50% and NetCore: acquisition-related Interest GAAP2.42% and Net Core Core:
Slide 26: Stable Asset Quality
STABLE Banks based on $3-$5 SNL ASSET Billion aggregate QUALITY NPLs figures / Loans 2.50% Page (%) 2.23% 26$25.0 1.93% $19.82.00% $20.0 1.76% $15.4 $15.0 1.66%$12.6 1.41%$10.0 1.36% $8.8 1.50% $5.0 1.63% $3.6 $-1.51% 2013 2014 1.03% 2015 1.00% 2016 0.50% 6/30/17 0.00% Allowance 2013 2014 for Loan 2
Slide 27: Appendix of Supporting Schedules
APPENDIX OF SUPPORTING SCHEDULES
Slide 28: Pro Forma Loan Portfolio
PRO as 12.0% Acquisition 44,398 2,295,100 141,618 Data FORMA Pro 43.6% of 5.5% 100.0% 6/30/2017. Forma Commercial Commercial 138,684 LOAN 9.8% $ 101,789 Quarterly PORTFOLIO 5.4% 24.5% Real 842,715 199,993 100.0% Estate 1.3% metrics 36.8% Triumph 11.9% $Valley 7.8% 541,217 are35,435 908,332 annualize
Slide 29: Pro Forma Deposit Portfolio
PROForma Pro Triumph 37.5% Valley 10.0% 0.53%FORMA $Loans Brokered 850,222 117,489 Non-interest 20.7% / DEPOSIT Deposits: 33.7% Deposits 41.9% 3.4%Bearing 84,640 17.3% 38,525 101.8% PORTFOLIO 84,640 3.4% Demand 33.7% 13.7% Data 4.1% $ 2,521,392 4.7% as 13,938 Total Triumph $ of 381,042 10.2% 6/30/20
Slide 30: Triumph Historical Financial Highlights
TRIUMPH Performance 7.79% 3.16% 62.44% average 17.14% value Diluted measures exclude per 7.15% 3.43% earnings 77.65% Common loans share can HISTORICAL ratios—annualized be 7.36% 3.85% 0.03% held $67.70% found per 16.59 equity forcommon Adjusted 7.42% 0.20% sale in $66.20% tier 16.08 the FINANCIAL (4
Slide 31: Non-GAAP Financial Reconciliation
NON-GAAP investors’ $?30, average shares stockholders 7.37% ?314 ?Incremental (Dollars $outstanding—diluted Page 6,064 shares overall in$FINANCIAL 31 $thousands, 9,467 outstanding—diluted 5,873 bonus understanding $$10,281 related 4,431 except RECONCILIATION 18,893,158 Dilutive $to6,064 ofper transa
Slide 32: Non-GAAP Financial Reconciliation
NON-GAAP (Dollars 6,208 expenses 25,792 $interest 3.85% 26,911 22,119 6,099 Page $income in $20,331 $ 23,273 24,174 thousands, 27,321 3,668 32 FINANCIAL $Incremental 5,202 $Operating $ 20,703 20,331 34,837 except $ 27,285 RECONCILIATION Adjusted $$revenue bonus per 18,075 26,911 $share 6,208 related
Slide 33: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP (Dollars (0.54%) (0.18%) preference T book (46,531) Page angible 33 value (0.32%) (0.45%) in (47,449) common (9,658) thousands, per FINANCIAL share (0.69%) (0.26%) (26,160) (9,746) stockholders’ $except 14.20 Adjusted (0.55%) (9,746) Adjusted RECONCILIATION $per 13.63 equity share Adjusted
Slide 34: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP amounts) Net 27,321 (22,119) 2017 Costs 2,723,303 (3.26%) 34 Noninterest 2017 to27,321 Average Pre-Provision Pre-Provision GAAP Net 2,723,303 (Dollars FINANCIAL Noninterest TExpense otal Core Assets inT Noninterest thousands, Net Net axes Net 0.21% toInterest Expense Revenue RECONCILIATION
Slide 35: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP (Dollars preference (28,518) 18,132,585 Goodwill stockholders’ 236,660 218,392 in (43,321) and (9,746) thousands, 18,107,493 FINANCIAL equity other 116,817 (26,160) (9,746) intangibles ratio except Tangible 8.98% 81,636 (9,746) Tangible RECONCILIATION per (46,531) book 13.85% share 246,290