Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Q1 2019 Earnings Presentation
22 slides from Triumph Financial's earnings presentation, Apr 17, 2019
Slide 1: Q1 2019 earnings release
Q1 2019 earnings release April 17, 2019 Exhibit 99.2
Slide 2: Forward-Looking Statements
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 forward-looki
Slide 3: Company Overview
COMPANY OVERVIEW PAGE 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 BAN
Slide 4: Platform Overview – Lending
PLATFORM OVERVIEW – LENDING PAG PAGE E 23% Texas Geographic Lending Concentrations1 as of March 31, 2019 1 Excludes factored receivables 26% Colorado 1% Kansas 7% Iowa 15% Illinois 5% New Mexico
Slide 5: Platform Overview – Branch Network
PLATFORM OVERVIEW – BRANCH NETWORK PAPAGE GE Western division 30 branches in Colorado 2 branches in western Kansas MIDwest division 10 branches in the Quad Cities metroplex 8 branches throughout northern and central Illinois Dallas Corporate Headquarters 1 branch (Primarily CDs) Currently constructi
Slide 6: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL PAGEPAGE Community Banking Commercial Finance Loans Held for Investment Chart data labels – dollars in millions 43190 43281 43373 43465 43555 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Community Banking 1,937.463 1,989.508 2,228.6370000000002 2,634.4520000000002 2,425.922999999999
Slide 7: Long Term Performance Goals vs Actual Q1
Return on Average Assets (“ROAA”) Net Overhead Ratio Net Interest Income to Average Assets Credit Costs Pre-Provision Net Revenue Taxes 5.52% 3.70% 1.82% 0.09% 0.40% LONG TERM PERFORMANCE GOALS VS ACTUAL Q1 PAPAGE GE Annualized performance metrics presented are for the three months ended March 31, 2
Slide 8: Investment Considerations
INVESTMENT CONSIDERATIONS PAGEPAGE Coverage Analysts: Matthew Olney – Stephens, Inc. Brad Milsaps – Sandler O’Neill & Partners Brady Gailey – Keefe, Bruyette & Woods, a Stifel Company Jared Shaw – Wells Fargo Securities, LLC Stephen Moss – B. Riley FBR, Inc. Brett Rabatin – Piper Jaffray & Co. Gary
Slide 9: Q1 2019 Results and Recent Developments
Q1 2019 RESULTS AND RECENT DEVELOPMENTS PAGE Diluted earnings per share of $0.55 for the quarter Total loans held for investment portfolio growth of $4.2 million – consistent with seasonal first quarter loan growth experienced in prior years Total real estate loan growth of $56.9 million Commercial
Slide 10: Loan Yields and Net Interest Margin
LOAN YIELDS AND NET INTEREST MARGIN PAGPAGE E Loan yields and Net Interest Margin *Includes discount accretion on purchased loans of $1,977 in 1Q18, $3,637 in 2Q18, $1,271 in 3Q18, $1,411 in 4Q18, and $1,557 in 1Q19 (dollars in thousands) **SNL U.S. Bank $1-$5B: Includes all Major Exchange (NYSE, NY
Slide 11: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING PAGE PAGE Yield of 17.96% in the current quarter Average annual charge-off rate of 0.39% over the past 3 years 6,382 factoring clients at March 31, 2019 * On June 2, 2018, we acquired the transportation factoring assets of Interstate Capital Corporation and certain
Slide 12: Triumph's Transportation Finance Opportunity
Annual Gross Revenues (8% GDP) $750 Billion : 4 Million Trucks For-Hire $400 Billion : 2.6 Million Trucks *This data utilizes high-level estimates from multiple data sources including FMCSA authority registrations, carrier reported numbers of power units, mercantile credit bureau reports and Triumph
Slide 13: Asset Quality and Acquired Loans
021% 0.18% oasn F 0.12% ian $ 0.09% | | = 0.06% boo — | | o.00% 4 1038 2018 sais sais 1019 Acquired Loans wg 925/000 $4,000 = $3,500 a _ $20,000 — 23 2,500 ‘= & $15,000 s: a3 2,000 & = $10,000 $1,500 - $5,000 $1,000 E $500 $0 $0 10182018 © 3Qis- sais aig Discount Accretion Recognized (in thousands)
Slide 14: Deposit Mix and Growth
DEPOSIT MIX AND GROWTH PAGPAGE E *Deposits totaling $601.2 million and $73.5 million were assumed in the First Bancorp of Durango, Inc. and Southern Colorado Corp. acquisitions, respectively
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS PAGE Reconciliations of non-GAAP financial measures can be found at the end of the presentation. Adjusted metrics exclude material gains and expenses related to merger and acquisition-related activities, net of tax where applicable Includes discount accretion on purchased loans
Slide 16: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE 43555QTD 42916QTD 42825QTD 42460QTD 42185QTD Period end date 43555 43465 43373 43281 43190 Quarter YTD Columns hidden for March Days in Year 365 365 365 365 365 Days in Quarter 90 92 92 91 90 As of and for the Three Months Ended (Dollars in thousands, March 31,
Slide 17: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE 43555QTD 42916QTD 42825QTD 42460QTD 42185QTD Period end date 43555 43465 43373 43281 43190 Quarter YTD Columns hidden for March Days in Year 365 365 365 365 365 Days in Quarter 90 92 92 91 90 As of and for the Three Months Ended (Dollars in thousands, March 31,
Slide 18: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE 43555QTD 42916QTD 42825QTD 42460QTD 42185QTD Period end date 43555 43465 43373 43281 43190 Quarter YTD Columns hidden for March Days in Year 365 365 365 365 365 Days in Quarter 90 92 92 91 90 As of and for the Three Months Ended (Dollars in thousands, March 31,
Slide 19: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PPAGE AGE 43555QTD 42916QTD 42825QTD 42460QTD 42185QTD Period end date 43555 43465 43373 43281 43190 Quarter YTD Columns hidden for March Days in Year 365 365 365 365 365 Days in Quarter 90 92 92 91 90 As of and for the Three Months Ended (Dollars in thousands, Marc
Slide 20: Appendix
Rethink Vanilla. APPENDIX ~ TRIUMPH
Slide 21: Factoring
Factoring 101 PAGE Client Account Debtor What is factoring? 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
Slide 22: TriumphPay
TriumphPay 101 PAGE TriumphPay Economics: Client approves invoice for $2,000. Payment terms are 21 days. Carrier opts for QuickPay. Triumph pays the carrier $1,980 same day or next day. The $20 difference represents the QuickPay fee. In this example arrangement, that fee is then split between the br