Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Investor Presentation (August 2017)
22 slides from Triumph Financial's investor presentation, Aug 1, 2017
Slide 1: Investor Information July 2017
Investor Information July 2017 Exhibit 99.1
Slide 2: 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: Recent Developments: Q2 2017 Highlights
RECENT DEVELOPMENTS: Q2 2017 HIGHLIGHTS Page Diluted EPS of $0.51 for 2Q’17 Increase of $0.26 (104%) over 2Q’16 Total loan portfolio growth of $259.9 million (12.8%) Commercial finance loan portfolio growth of $88.0 million (12.3%) Commercial real estate loan portfolio growth of $43.1 million (8.7%)
Slide 4: Colorado Branch Acquisition Overview
Improves core deposit base and funding capacity 42% demand deposits, 97% core deposits 60% loan to deposit ratio Advances our long term performance goals 0.38% cost of deposits Projected overhead ratio contribution of 1.75% - 2.00% (excluding amortization), within our 2% target Strengthens our posit
Slide 5: Valley Bancorp Acquisition Overview
Improves core deposit base and funding capacity 56% demand deposits, 99% core deposits 61% loan to deposit ratio Advances our long term performance goals 0.10% cost of deposits Overhead ratio contribution of 1.5% (including synergies, ex amortization), within our 2.0% target Further strengthens our
Slide 6: Valley Bancorp Acquisition: Terms
VALLEY BANCORP acquisition: TERMS Page 11.0x actual / 14.9x adjusted Price / LTM Net Income(1) 11.6x Price / 2018E Net Income 5.8% Core Deposit Premium(2) $23.9 million Projected TBV Delivered at Close(3) Q4 2017 Expected Closing and Core System Conversion Customary regulatory and other approvals; v
Slide 7: Consolidated Financial Impact
Combined Pro Forma Capital Impact(1) Attractive Combined Deal Economics(1) CONSOLIDATED FINANCIAL IMPACT Page Estimated TBV(2) Dilution of <0.5% Projected to be +1.9% accretive to earnings in 2019(3) Estimated TBV(2) crossover earnback of 1 year Pro Forma TCE / TA(2) of 9.0% Pro Forma Leverage Ratio
Slide 8: Enhanced Pro Forma Operations
ENHANCED Pro FORMA OPERATIONS Page Branch Presence Creates a meaningful presence in the Northern Front Range Results in pro forma company with $3.3bn in assets, $2.6bn in loans, and $2.5bn in deposits Acquisitions improve liquidity and funding profile, decreasing LTD ratio to 101.8% pro forma while
Slide 9: Strength in Differentiation
STRENGTH IN DIFFERENTIATION Page 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. Community Banking Full suite of lendi
Slide 10: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL Community Banking Commercial Finance Loans Held for Investment Page As of June 30, 2017 (Dollars in Millions) 42551 42643 42735 42825 42916 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Community Banking 803.58500000000004 1,321.9390000000001 1,333.94 1,321.6 1,493.4259999999999 Equi
Slide 11: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING Page Yield of 17.35% in the second quarter Average annual charge-off rate of 0.41% over the past 3 years 2,690 factoring clients at June 30, 2017
Slide 12: Triumph Business Capital: ~$40 Billion Addressable Market
TRIUMPH BUSINESS CAPITAL: ~$40 Billion Addressable Market Page Annual Gross Revenues (8% GDP) $750 Billion : 4 Million Trucks For-Hire $400 Billion : 2.6 Million Trucks Contract $225 Billion (Target market between fleet sizes of 1 and 100 trucks) 3PL/Broker $175 Billion (Target market of annual reve
Slide 13: Long Term Performance Goals vs Actual
Return on Average Assets (“ROAA”) GAAP: 1.42% Core: 1.42% Goal: > 1.50% Net Overhead Ratio Net Interest Income to Average Assets Credit Costs Pre-Provision Net Revenue Taxes GAAP: 5.68% Core: 5.68% Goal: > 5.00% GAAP: 3.26% Core: 3.26% Goal: < 2.00% GAAP: 2.42% Core: 2.42% Goal: > 3.00% GAAP: 0.21%
Slide 14: Stable Asset Quality
STABLE Asset Quality Page US Commercial Bank data based on SNL aggregate figures
Slide 15: Appendix of Supporting Schedules
APPENDIX OF SUPPORTING SCHEDULES
Slide 16: Pro Forma Loan Portfolio
PRO FORMA LOAN PORTFOLIO Page MRQ Yield: 7.79% MRQ Yield: 5.05% MRQ Yield: 5.80% MRQ Yield: 7.51% Commercial Real Estate Construction & Development Farmland Commercial Factored Receivables Mortgage Warehouse & Other 1-4 Family Residential Consumer Triumph CO Branch Acquisition Valley Pro Forma Data
Slide 17: Pro Forma Deposit Portfolio
PRO FORMA DEPOSIT PORTFOLIO Page MRQ Cost: 0.60% MRQ Cost: 0.38% MRQ Cost: 0.10% MRQ Cost: 0.53% Non-Interest Bearing Demand Interest Bearing Demand Money Market Savings Certificates of Deposit IRAs Brokered Deposits Triumph CO Branch Acquisition Valley Pro Forma Loans / Deposits: 110.8% Loans / Dep
Slide 18: Triumph Historical Financial Highlights
TRIUMPH HISTORICAL FINANCIAL HIGHLIGHTS Page Reconciliations of non-GAAP financial measures can be found in the appendix Metric adjusted to exclude material gains and expenses related to merger and acquisition-related activities, net of tax where applicable Asset quality ratios exclude loans held fo
Slide 19: 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. 42916QTD 42825QTD 42460QTD 42185QTD 42094QTD 429
Slide 20: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Page 42916QTD 42825QTD 42460QTD 42185QTD 42094QTD 42916YTD 42551YTD Period end date 42916 42825 42735 42643 42551 42916 42551 Quarter 2 Days in Year 365 365 366 366 366 365 366 Days in Quarter 91 90 92 92 91 181 182 As of and for the Three Months Ended As of and for
Slide 21: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Page
Slide 22: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Page 42916QTD 42825QTD 42460QTD 42185QTD 42094QTD 42916YTD 42551YTD Period end date 42916 42825 42735 42643 42551 42916 42551 Quarter 2 Days in Year 365 365 366 366 366 365 366 Days in Quarter 91 90 92 92 91 181 182 As of and for the Three Months Ended As of and for
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