Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Q2 2019 Earnings Presentation
24 slides from Triumph Financial's earnings presentation, Jul 17, 2019
Slide 1: Q2 2019 Earnings Release
Q2 2019 EARNINGS RELEASE July 17, 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, national lending, and commercial finance products through its bank subsidiary, TBK Bank, SSB. www.triumphbancorp.com
Slide 4: Platform Overview – Branch Network
PLATFORM OVERVIEW – BRANCH NETWORK BRANCH LOCATIONS as of June 30, 2019 61 TOTAL BRANCHES 37 in Colorado 15 in Illinois 3 in Iowa 3 in New Mexico 2 in Kansas 1 in Texas PAPAGE 4 GE 4
Slide 5: Platform Overview – Lending
PLATFORM OVERVIEW – LENDING GEOGRAPHIC LENDING CONCENTRATIONS1 as of June 30, 2019 8% Iowa 14% 25% Illinois Colorado 1% Kansas 4% New Mexico 25% Texas PAG 1 States with a physical branch presence. Excludes factored receivables PAGE 5 E5
Slide 6: Q2 2019 Results and Recent Developments
Q2 2019 RESULTS AND RECENT DEVELOPMENTS Diluted earnings per share of $0.48 for the quarter $12.7 million Net income to common stockholders Total loans held for investment portfolio growth of $223.0 million − Diversified loan growth, including $53.9 LOAN million in community banking, $77.6 milli
Slide 7: Long Term Performance Goals vs Actual Q2
LONG TERM PERFORMANCE GOALS VS ACTUAL Q2 NET INTEREST INCOME TO AVERAGE ASSETS Goal 5.50 - 6.00% PRE-PROVISION CREDIT COSTS TAXES NET REVENUE 5.42% Goal Goal Goal > 2.70% < 0.30% ~ 0.50% NET OVERHEAD RATIO 1.74% 0.31% 0.34% Goal 2.80 - 3.30% 3.68% RETURN ON AVERAGE ASSETS (“ROAA”) Goal > 1.80% 1.09%
Slide 8: Loan Portfolio
LOAN PORTFOLIO TOTAL LOANS COMMUNITY BANKING Focused on core deposit generation and business lending in the communities we serve $1,187.1 $2,174.4 31% COMMERCIAL FINANCE 57% Factoring, asset based lending, and $3,838.8 equipment finance produce top tier return on assets $477.3 12% NATIONAL LENDING M
Slide 9: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL COMMUNITY BANKING COMMERCIAL FINANCE NATIONAL LENDING 57% of Total Portfolio 31% of Total Portfolio 12% of Total Portfolio 33% 5% 49% $2,174.4 26% 73% $1,187.1 80% $477.3 15% 1% 18% REAL ESTATE Commercial Real Estate $ 1,098.3 Construction, Land & Development $ 157.9 FACTORED R
Slide 10: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING CLIENT PORTFOLIO MIX Yield of 18.73% in the current quarter 83% Average annual charge-off rate of 0.40% over the past 3 years 17% 6,455 factoring clients at June 30, 2019 Transportation Non-Transportation 1,000,000 $2,500 $1,600,000 900,000 $2,300 6,000 Numbe
Slide 11: Impact of Spot Rates on Truck Orders
IMPACT OF SPOT RATES ON TRUCK ORDERS Spot rates are highly correlated with new truck orders. The chart below shows three years of history demonstrating the relationship between spot rates and new truck orders. Greater orders of trucks, as we saw in 2018 lead to greater capacity in the market and pre
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. Nbr. Trucks Annual Revenue Nbr. 3PLs $ Billions Carriers Inactive 5,300 1 to 5 189,200 3
Slide 13: Transportation Finance
TRANSPORTATION FINANCE By proudly banking truckers, we intend to be a dominant player in a large industry that is a profitable sector for a well-positioned bank. 40% Products we offer to transportation 35% clients include: Checking 30% Treasury management 25% Factoring 20% Equipment finance
Slide 14: Carrier Payment Platform
CARRIER PAYMENT PLATFORM TMS INTEGRATION PARTNERS CLIENTS ON PLATFORM INVOICE AND PAYMENT TRENDS Payment Amounts Processed 700 $800 $700 Number of Invoices 600 (in thousands) 500 $600 (in millions) $500 400 $400 300 $300 200 $200 100 $100 - $- 2Q18 3Q18 4Q18 1Q19 2Q19 Total payment amounts processed
Slide 15: Loan Portfolio: Credit Quality
LOAN PORTFOLIO NCOs / AVERAGE LOANS NPAs / TOTAL ASSETS 0.21% 2.4% 2.1% Non-performing Assets 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% 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 ACQUIRED LOANS ALLL / TOTAL LOANS $25,000 $4,000 1.00% Discount
Slide 16: Deposit Mix
DEPOSIT MIX DEPOSIT BALANCES DEPOSIT MIX $4,000 1.6% June 30, 2019 Brokered deposits $3,500 1.4% 9% $3,000 1.2% Certificates of deposit 31% Non-interest $2,500 1.0% Deposit Balances bearing (in millions) demand Rates $2,000 0.8% 19% $1,500 0.6% $1,000 0.4% $500 0.2% Savings $0 0.0% 10% Interest bear
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS As of and For the Thre e Months Ende d Key Metrics June 30, March 31, De ce mbe r 31, Se pte mbe r 30, June 30, 2019 2019 2018 2018 2018 Pe rformance ratios - annualiz e d Return on average assets 1.09% 1.33% 1.60% 0.90% 1.37% (1) Return on average tangible common equity (ROAT C
Slide 18: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation As of and for the T hree Months Ended June 30, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2019 2018 2018 2018 2018 Net income available to common stockholders $ 12,730
Slide 19: 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 June 30, March 31, December 31, September 30, June 30, (Dollars in thousands, except per share amounts) 2019 2019 2018 2018 2018 Adjusted efficiency ratio: Net interest inco
Slide 20: 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 June 30, March 31, December 31, September 30, June 30, (Dollars in thousands, except per share amounts) 2019 2019 2018 2018 2018 T otal stockholders' equity $ 643,362 $ 646,
Slide 21: 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 June 30, 2019 June 30, 2019 (Dollars in thousands, except per share amounts) GAAP (Dollars in thousands, except per share amounts) GAAP Net interest income
Slide 22: Appendix
APPENDIX
Slide 23: 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 24: TriumphPay 101
TriumphPay 101 What is TriumphPay? TriumphPay Economics: TriumphPay is a reverse factoring product that connects our proprietary payment 1. Client approves invoice for $2,000. Payment terms are 21 days. processing system with a broker or third party logistics’ (3PL) transportation 2. Carrier opts fo