Slide 1: Q4 2018 Earnings Release
Q4 2018 EARNINGS RELEASE January 22, 2019
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: Company Overview
COMPANY OVERVIEW Triumph Bancorp, Inc. (NASDAQ: TBK) (“Triumph”) 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. www.triumphbancorp.com Community Banking
Slide 4: Platform Overview - Lending
PLATFORM OVERVIEW - LENDING Geographic Lending Concentrations1 as of December 31, 2018 7% Iowa 15% 27% Illinois Colorado 1% Kansas 5% New Mexico 24% Texas 1 Excludes factored receivables PAGE 4
Slide 5: Platform Overview – Branch Network
PLATFORM OVERVIEW – BRANCH NETWORK WESTERN DIVISION MIDWEST DIVISION 30 branches in Colorado 10 branches in the Quad Cities metroplex 2 branches in western Kansas 8 branches throughout northern and central Illinois MOUNTAIN DIVISION DALLAS 7 branches in Colorado Corporate Headquarters
Slide 6: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL Community Banking Loans Held for Investment Commercial Finance 1% 14% 20% 49% 28% $1,256.2 $2,352.4 35% 65% 65% 17% 6% REAL ESTATE Commercial Real Estate $ 992.1 FACTORED RECEIVABLES Construction, Land & Development $ 179.6 Triumph Business Capital $ 588.8 1-4 Family Residentia
Slide 7: Long Term Performance Goals vs Actual Q4
LONG TERM PERFORMANCE GOALS VS ACTUAL Q4 Net Interest Goal = 5.50 - 6.00% Income to Average Assets 5.73% Pre-Provision Credit Costs Taxes Net Revenue Net Overhead 2.18% 0.17% 0.41% Goal = 2.80 - 3.30% Ratio Goal > 2.70% Goal: < 0.30% Goal: ~0.50% 3.55% Return on Average Assets (“ROAA”) 1.60% Goal: >
Slide 8: Investment Considerations
INVESTMENT CONSIDERATIONS Normalized as of 12/31/2017 through 12/31/2018 1.60 1.45 1.30 1.15 1.00 0.85 0.70 TBK US Equity - Last Price BKX Index - Last Price CBNK Index - Last Price Coverage Analysts: Matthew Olney – Stephens, Inc. Brad Milsaps – Sandler O’Neill & Partners Brady Gailey – Keefe
Slide 9: Q4 2018 Highlights and Recent Developments
Q4 2018 HIGHLIGHTS AND RECENT DEVELOPMENTS Diluted earnings per share of $0.67 for the quarter Total loans held for investment portfolio growth of $18.1 million Net income to common stockholders $96.5 million Commercial real estate growth of $85.6 million Mortgage warehouse growth of $37.3 m
Slide 10: Loan Yields and Net Interest Margin
LOAN YIELDS AND NET INTEREST MARGIN 12% LOAN YIELDS AND NET INTEREST MARGIN 10% 8.09% 8.33% 8.14% 7.73% 7.65% 8% 6.36% 6.59% 6.34% 6.16% 6.06% 6% 4% 3.67% 3.63% 3.66% 3.72% 3.72% 2% 0% 4Q17 1Q18 2Q18 3Q18 4Q18 Yield on Loans* Net Interest Margin* Net Interest Margin SNL U.S. Bank $1B-$5B** *Includes
Slide 11: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING Client Portfolio Mix Yield of 18.24% in the current quarter 83% Transportation Average annual charge-off rate of 0.37% over the past 3 years Non-Transportation 6,191 factoring clients at December 31, 2018 17% 1,000,000 $2,500 $1,600,000 900,000 $2,300 6,000 $
Slide 12: Triumph's Transportation Finance Opportunity
TRIUMPH’S TRANSPORTATION FINANCE OPPORTUNITY Annual Gross Revenues (8% GDP) $750 Billion : 4 Million Trucks For-Hire $400 Billion : 2.6 Million Trucks Contract 3PLs/Broker $225 Billion $175 Billion Fleet Size Nbr. Carriers Nbr. Trucks Annual Revenue Nbr. 3 PLs $ Billions 1 to 5 189,200 300,000 Inact
Slide 13: Loan Portfolio: Non-performing Assets
LOAN PORTFOLIO NCOs / Average Loans NPAs / Total Assets 2.4% 0.21% Non-performing Assets 2.1% 0.18% 1.8% Net Chargeoffs 0.15% 1.5% 0.12% 1.2% 0.09% 0.9% 0.06% 0.6% 0.03% 0.3% 0.00% 0.0% 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 Acquired Loans ALLL / Total Loans $25,000 $4,000 1.00% Discount
Slide 14: Deposit Mix and Growth
DEPOSIT MIX AND GROWTH Deposit Growth Deposit Mix $4,000 1.6% December 31, 2018 Brokered deposits $3,500 1.4% Certificates of 10% deposit 24% $3,000 1.2% $2,500 1.0% Non-interest Deposit Balances bearing demand (in millions) 21% Rates $2,000 0.8% $1,500 0.6% Savings 11% $1,000 0.4% $500 0.2% Interes
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS As of and For the Three Months Ended Key Metrics December 31, September 30, June 30, March 31, December 31, 2018 2018 2018 2018 2017 Performance ratios - annualized Return on average assets 1.60% 0.90% 1.37% 1.43% 0.79% Return on average tangible common equity (ROAT CE) (1) 16.7
Slide 16: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION 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 As of a
Slide 17: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont'd) As of and for the T hree Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 Adjusted efficiency ratio: Net interest
Slide 18: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont'd) As of and for the T hree Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2018 2018 2018 2018 2017 T otal stockholders' equity $ 636,607 $
Slide 19: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont'd) For the T hree Months Ended For the T hree Months Ended December 31, 2018 December 31, 2018 (Dollars in thousands, except per share amounts) GAAP (Dollars in thousands, except per share amounts) GAAP Net interes
Slide 20: Appendix
APPENDIX JUST THE RIGHT AMOUNT OF EPIC
Slide 21: Factoring 101
FACTORING 101 What is factoring? Client Account Debtor Factoring is one of the oldest forms of finance. Factoring is a financial transaction in which a business sells its accounts receivable to a third party (factor) at a discount. A business typically factors its receivable assets to meet its p
Slide 22: TriumphPay 101
TRIUMPHPAY 101 What is TriumphPay? TriumphPay Economics: TriumphPay is a reverse factoring product that connects our proprietary 1. Client approves invoice for $2,000. Payment terms are 21 days. payment processing system with a broker or third party logistics’ (3PL) 2. Carrier opts for QuickPay. Tri