Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Q1 2020 Earnings Presentation
19 slides from Triumph Financial's earnings presentation, Apr 20, 2020
Slide 1: Q1 2020 Earnings Release
Q1 2020 Earnings Release April 20, 2020
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 March 31, 2020 61 TOTAL BRANCHES 37 in Colorado 15 in Illinois 3 in Iowa 3 in New Mexico 2 in Kansas 1 in Texas PAGE 4
Slide 5: Platform Overview – Lending
PLATFORM OVERVIEW – LENDING GEOGRAPHIC LENDING CONCENTRATIONS1 as of March 31, 2020 6% Iowa 13% 19% Illinois Colorado 1% Kansas 2% New Mexico 26% Texas 1 States with a physical branch presence. Excludes factored receivables PAGE 5
Slide 6: COVID-19 Response
COVID-19 RESPONSE We are supporting our customers and communities affected by the COVID-19 pandemic. Loan payment deferral program and participation in the Paycheck Protection Program (PPP). As of April 15th, we have executed 404 deferrals on outstanding loan balances of $233 million. We have 39
Slide 7: COVID-19 Exposure
COVID-19 EXPOSURE March 31, 2020 exposure to industries most impacted by COVID-19 Total Exposure1 Industry (millions) % of Gross Loans Retail $195.5 4.52% Energy $133.1 3.08% Hospitality $128.9 2.98% Restaurants $55.1 1.27% Health Care/Senior Care $41.6 0.96% Total Exposure1 Total Exposure1 Energy (
Slide 8: Q1 2020 Results and Recent Developments
Q1 2020 RESULTS AND RECENT DEVELOPMENTS Diluted loss per share of $0.18 for the quarter Total loans held for investment increased $126.0 million − The commercial finance portfolio increased $135.1 million, the $(4.5) million national lending portfolio increased $61.2 million, and the Net loss to
Slide 9: Long Term Performance Goals vs Actual Q1
LONG TERM PERFORMANCE GOALS VS ACTUAL Q1 NET INTEREST INCOME TO AVERAGE ASSETS CREDIT COSTS Goal Goal PRE-PROVISION < 0.30% RETURN ON 6.00 - 6.50% NET REVENUE AVERAGE ASSETS Q1: 5.12% Q1: 1.42% Goal Goal > 3.00% > 2.00% NET OVERHEAD RATIO TAXES Goal Q1: 1.00% Goal Q1: (0.36%) 3.00 - 3.50% ~ 0.57% Q1
Slide 10: Loan Portfolio
LOAN PORTFOLIO TOTAL LOANS COMMUNITY BANKING Focused on core deposit generation and business lending in the communities we serve $1,385.6 32% COMMERCIAL FINANCE Factoring, asset based lending, and $2,027.6 $4,325.1 equipment finance produce top tier 47% return on assets $911.9 21% NATIONAL LENDING M
Slide 11: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL COMMUNITY BANKING COMMERCIAL FINANCE NATIONAL LENDING 47% of Total Portfolio 32% of Total Portfolio 21% of Total Portfolio 34% 25% 48% 74% $2,027.6 $1,385.6 81% $911.9 19% 1% 18% REAL ESTATE Commercial Real Estate $ 985.8 Construction, Land & Development $ 198.1 FACTORED RECEIV
Slide 12: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING CLIENT PORTFOLIO MIX Yield of 16.13% in the current quarter 80% Average annual charge-off rate of 0.42% 20% over the past 3 years Transportation Non-Transportation $1,600,000 1,000,000 $2,000 900,000 Total Purchases (in thousands) Number of Invoices Purchased $
Slide 13: Transportation Finance
TRANSPORTATION FINANCE By proudly banking the trucking industry, 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: 30% Checking 25% Treasury management 20% Factoring Equip
Slide 14: Carrier Payment Platform
CARRIER PAYMENT PLATFORM CLIENTS ON PLATFORM INVOICE AND PAYMENT TRENDS 2,200 $2,500 2,000 Payment Amounts Processed 1,800 $2,000 1,600 Number of Invoices (in thousands) 1,400 (in millions) $1,500 1,200 1,000 $1,000 800 600 400 $500 200 - $- 1Q19 2Q19 3Q19 4Q19 1Q20 Total payment amounts processed (
Slide 15: Loan Portfolio: Asset Quality
LOAN PORTFOLIO NCOs / AVERAGE LOANS NPAs / TOTAL ASSETS 2.4% Non-performing Assets 0.21% 2.1% 0.18% Net Chargeoffs 1.8% 0.15% 1.5% 0.12% 1.2% 0.09% 0.9% 0.06% 0.6% 0.03% 0.3% 0.00% 0.0% 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 ACQUIRED LOANS ACL / TOTAL LOANS $25,000 $2,500 1.25% Discount A
Slide 16: Deposit Mix
DEPOSIT MIX Deposit Balances Deposit Mix $4,000 1.6% March 31, 2020 Brokered $3,500 1.4% deposits Certificates of 8% deposit $3,000 1.2% 29% $2,500 1.0% Deposit Balances (in millions) Non-interest bearing demand Rates $2,000 0.8% 23% $1,500 0.6% $1,000 0.4% Savings 10% $500 0.2% $0 0.0% Interest bea
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS As of and For the Thre e Months Ende d Key Metrics March 31, Decembe r 31, Se pte mber 30, June 30, March 31, 2020 2019 2019 2019 2019 Performance ratios - annualiz ed Return on average assets (0.36%) 1.31% 1.17% 1.09% 1.33% Return on average tangible common equity (ROAT CE) (1)
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 March 31, December 31, September 30, June 30, March 31, (Dollars in thousands, except per share amounts) 2020 2019 2019 2019 2019 Average total stockholders' equity $ 627,369 $ 647,5
Slide 19: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont'd) For the T hree Months Ended For the T hree Months Ended March 31, 2020 March 31, 2020 (Dollars in thousands, except per share amounts) GAAP (Dollars in thousands, except per share amounts) GAAP Net interest inco