Slide 1: Ideas Conference
IDEAS CONFERENCE Exhibit 99.1
Slide 2: Disclaimer: Forward-Looking Statements
IDEAS CONFERENCE – PAGE 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-look
Slide 3: Platform Overview
IDEAS CONFERENCE – PAGE Headquartered in Dallas, Texas, Triumph Bancorp, Inc. (NASDAQ: TBK) is a financial holding company with a diversified line of community banking, commercial finance and asset management activities. www.triumphbancorp.com team members(2) PLATFORM OVERVIEW
Slide 4: Background and History
IDEAS CONFERENCE – PAGE BACKGROUND AND HISTORY November, 2010: Acquired Equity Bank, SSB November, 2011: Released from all regulatory enforcement orders CRAWL: Acquire & Clean-up 2010 – 2011 2012 – 2014 WALK: Platform Development June, 2014: Acquired Doral Healthcare Finance, now Triumph Healthcare
Slide 5: Investment Considerations
IDEAS CONFERENCE – PAGE INVESTMENT CONSIDERATIONS We are an entrepreneurial financial services company that seeks to balance financial returns with franchise value creation We prefer to spread our risk all along the economic continuum (start-ups to mature businesses) through a variety of community b
Slide 6: How We Go To Market
HOW WE GO TO MARKET IDEAS CONFERENCE – PAGE Commercial Finance Community Banking Asset Management Factoring Asset Based Lending & Equipment Finance Asset Based Lending
Slide 7: Perceived Risk and Yield
Private Banking Services Traditional Commercial Lending Asset Based Lending Factoring Mezzanine and Equity YIELD PERCEPTION OF RISK PERCEIVED RISK AND YIELD IDEAS CONFERENCE – PAGE
Slide 8: How We Go To Market
HOW WE GO TO MARKET IDEAS CONFERENCE – PAGE Commercial Finance Community Banking Asset Management Factoring Asset Based Lending & Equipment Finance Asset Based Lending
Slide 9: Community Banking: Midwest Division
6/30/2016 Our goal is to be the dominant bank in our markets We made progress by growing deposits $85.9 million or 7.2% since June 30, 2015. Loans grew $118.6 million or 17.3% over the same period. Our strategy is to serve entire communities – working class families, small business owners and major
Slide 10: Transaction Rationale: ColoEast Bankshares
TRANSACTION RATIONALE Deployed excess capital to expand community banking platform and support future commercial finance growth Stable, low-cost deposit franchise for a reasonable price Based in Lamar, Colorado Acquisition closed August 1, 2016 16 branches, 1 LPO in Colorado 2 branches in western Ka
Slide 11: How We Go To Market
HOW WE GO TO MARKET IDEAS CONFERENCE – PAGE Commercial Finance Community Banking Asset Management Factoring Asset Based Lending & Equipment Finance Asset Based Lending
Slide 12: Commercial Finance
6/30/2016 Our goal is to become a market leader for financial services to small businesses and the lower end of the middle market Growth since June 30, 2015 Equipment finance: $29.0 million (21.0%) Asset based lending: $66.4 million (51.1%) Factoring: $37.8 million (18.9%) Pie chart data labels – do
Slide 13: How We Go To Market
HOW WE GO TO MARKET IDEAS CONFERENCE – PAGE Commercial Finance Community Banking Asset Management Factoring Asset Based Lending & Equipment Finance Asset Based Lending
Slide 14: Asset Management
2013 * Fee Generating CLO Assets consist of CLOs for which we are asset manager and CLOs for which we provide staff & services for a fee. Warehoused CLO balances are excluded. ** Asset Management Fees include both asset management fees and staff & services fees. *** CLO Warehouse Income is the incom
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS IDEAS CONFERENCE – PAGE
Slide 16: 2015 Financial Highlights
$28.4 million Net income to common stockholders LOANS 28.4% $286.0 million loan growth DEPOSITS 7.2% $83.7 million deposit growth ROAA 1.89% Return on average assets FEE GENERATING CLO ASSETS $1.9 Billion 2015 FINANCIAL HIGHLIGHTS $16.9 million Net income to common stockholders LOANS 14.2% $124.8 mi
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS IDEAS CONFERENCE – PAGE
Slide 18: Q2 2016 Highlights
Diluted earnings per share of $0.25 for the quarter Commercial finance loan portfolio growth of $78.8 million Community banking/other loan portfolio growth of $85.9 million Efficiency ratio improved to 68.74% from 73.09% at March 31, 2016 Tangible book value per share increased to $13.47 from $13.18
Slide 19: Loan Mix, Yield, and Growth
LOAN MIX, YIELD, AND GROWTH *Reconciliations of non-GAAP financial measures can be found at the end of the presentation IDEAS CONFERENCE – PAGE
Slide 20: Deposit Mix, Rate, and Growth
DEPOSIT MIX, RATE, AND GROWTH IDEAS CONFERENCE – PAGE
Slide 21: Goals & Where We Go From Here
GOALS & WHERE WE GO FROM HERE IDEAS CONFERENCE – PAGE
Slide 22: 2016 Goals: In Progress
lending Acquisitions 2016 GOALS: IN PROGRESS Goal: Continue to improve our net overhead ratio Capture efficiencies in operations and expected savings Monitor and actively manage expense growth throughout the enterprise Right-size the capital structure of TBK Bank and the holding company through the
Slide 23: Where We Go From Here
WHERE WE GO FROM HERE Return on Average Assets (“ROAA”) 2015 Unadjusted: 1.89% Adjusted: 0.98% Goal: 1.50% Net Overhead Ratio Net Interest Income to Total Assets Credit Costs Pre-Provision Net Revenue Taxes Note: The sum of the component amounts may not equal the total amounts due to rounding. Recon
Slide 24: Appendix
APPENDIX
Slide 25: Business Lines: Community Banking, Factoring, ABL
Community Banking Reach our communities through service, selling and saturation Emphasize long-term customer relationships Work with our clients throughout economic cycles Maximize value adding cross-sell opportunities A bank for all people, committed to their financial goals in every stage of life
Slide 26: Financial Highlights: Key Metrics
FINANCIAL HIGHLIGHTS Reconciliations of non-GAAP financial measures can be found at the end of the presentation 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 for sale ID
Slide 27: Commercial Finance Primer
COMMERCIAL FINANCE PRIMER IDEAS CONFERENCE – PAGE
Slide 28: Asset Based Lending (ABL)
ASSET BASED LENDING (ABL) IDEAS CONFERENCE – PAGE
Slide 29: What is Asset Based Lending?
What is Asset Based Lending? Asset Based Lending (“ABL”) is a type of senior secured lending that is typically governed by a borrowing base which revolves with the movement of the underlying assets - primarily accounts receivable and inventory. The assets that secure an ABL usually include accounts
Slide 30: Capital Structure Hierarchy
Capital Structure Hierarchy ABL is the most senior component and lowest risk category of a company’s capital structure. Target Lending Class Lowest risk category Attractive for banks / lenders with low cost of funds Fully collateralized First priority security interest Generally liquid assets Yields
Slide 31: ABL Characteristics Profile
CHARACTERISTICS PROFILE Facility Size $1 million to $25 million Types of Business Manufacturers ▪ Distributors ▪ Wholesalers ▪ Service Providers ▪ Retailers Business Profile Privately owned or publicly traded Sponsor or non-sponsor backed Annual Sales ranging between $7.5 million to $250 million EBI
Slide 32: Introduction to the ABL Process
Source: "Introduction to ABL for Community Banks". Commercial Finance Association. www.cfa.com Typical Underwriting Process Flow Before receipt of good faith deposit Due diligence process up to commitment fee Closing process Post closing process Pre-clearance summary Initial Concept Committee Letter
Slide 33: Assets as Collateral: The Borrowing Base
Source: "Introduction to ABL for Community Banks". Commercial Finance Association. www.cfa.com Assets as Collateral—The Borrowing Base The borrowing base is comprised of working capital assets, generally accounts receivable and inventory, that are available to use as collateral to secure the revolvi
Slide 34: Assets as Collateral: Standard Ineligible Categories
For Inventory Work-in-process Obsolete or slow moving Inventory in transit Consigned inventory; supplies and packaging inventory Inventory located outside the United States Inventory purchased or manufactured pursuant to a license agreement For Accounts Receivables Source: "Introduction to ABL for C
Slide 35: Introduction to ABL Customers
Emerging Middle Mkt / Growth Mature Restructure Emerging growth Start-Up Acquisition financing Business expansions Spin-Offs Recapitalization Bank refinancing DIP, POR & early stage turnaround Company Lifecycle Company Size / Credit Quality Target Markets Company Lifecycle Lending Emerging Equity: A
Slide 36: Factoring
FACTORING IDEAS CONFERENCE – PAGE
Slide 37: Invoice Factoring Overview
Invoice factoring is a style of working capital finance by which businesses (“clients”) sell their invoices (“accounts” or “accounts receivable”) to a third party commercial financial company, also known as a “factor”. Accounts are typically sold at a discount to their face value, thereby generating
Slide 38: Factoring Segments and Pricing
Non-Recourse Transportation Small-Ticket Recourse Transportation Small-Mid Fleet Freight Brokers General Factoring Small ticket, higher risk accounts: 1-5 trucks Non-Recourse (Triumph Business Capital retains debtor credit risk) Average monthly purchases/carrier = $30,000 3 to 5% discount rate on pu
Slide 39: Factoring Mechanics
In all cases, a factor is in a primary, first-lien position against its client’s accounts receivable. There may be other liens on the accounts, but these are subordinate to the factor. An acceptable invoice is one that has no outstanding contingencies affecting the purchaser’s obligation for payment
Slide 40: Factoring of a $1,000 Freight Invoice
Factoring of a $1,000 Freight Invoice Carrier Example Client Account Debtor Factor 1 2 3 6 4 5 Summary Account Debtor contracts with Client to provide services, such as trucking delivery. Invoice amount is $1,000. Client renders services and presents Account Debtor with an invoice for $1,000 which i
Slide 41: Non-GAAP Financial Reconciliations
NON-GAAP FINANCIAL RECONCILATIONS IDEAS CONFERENCE – PAGE
Slide 42: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of such financial performance. IDEAS CONFERENCE – PAGE Metrics and non
Slide 43: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION IDEAS CONFERENCE – PAGE Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended June 30, March 31, December 31, September 30, June 30, (Dollars in thousands, except per share amounts) 2016 2016 2015 2015 2015 Net income $4,626 $5,006 $4,50
Slide 44: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION IDEAS CONFERENCE – PAGE Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended June 30, March 31, December 31, September 30, June 30, (Dollars in thousands, except per share amounts) 2016 2016 2015 2015 2015 Net income $4,626 $5,006 $4,50
Slide 45: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION IDEAS CONFERENCE – PAGE Non-GAAP Reconciliation Unadjusted Adjusted Unadjusted Adjusted (Dollars in thousands) As of and for the year ended December 31, 2015 As of and for the year ended December 31, 2015 (Dollars in thousands) As of and for the year ended December
Slide 46: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION IDEAS CONFERENCE – PAGE *The sum of the component amounts may not equal the total amounts due to rounding. Non-GAAP Reconciliation Unadjusted Adjusted Unadjusted Adjusted (Dollars in thousands) As of and for the year ended December 31, 2015 As of and for the year en