Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Q4 2020 Earnings Presentation
20 slides from Triumph Financial's earnings presentation, Jan 21, 2021
Slide 1: Q4 2020 Earnings Release
Q4 2020 Earnings Release January 21, 2021
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: Q4 2020 Results
Q4 2020 RESULTS Diluted earnings per share of $1.25 for the quarter Total loans held for investment increased $143.9 million − The commercial finance portfolio increased $187.5 $31.3 million million, the national lending portfolio increased $33.8 Net income to common stockholders million, and th
Slide 5: Loan Portfolio
LOAN PORTFOLIO TOTAL LOANS (in millions) COMMUNITY BANKING Focused on core deposit generation and business lending in the communities we serve $1,874.4 37% COMMERCIAL FINANCE Factoring, asset based lending, and $5,021.3 equipment finance produce top tier return on assets $1,907.1 38% $1,239.8 25% NA
Slide 6: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL COMMUNITY BANKING COMMERCIAL FINANCE NATIONAL LENDING 38% of Total Portfolio 37% of Total Portfolio 25% of Total Portfolio 60% 33% $1,907.1 $1,874.4 84% $1,239.8 66% 16% 30% 1% 10% REAL ESTATE Commercial Real Estate $ 779.2 Construction, Land & Development $ 219.6 FACTORED RECE
Slide 7: 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. 45% Products we offer to transportation 40% clients include: 35% Checking 30% Treasury management 25% Factoring 20% E
Slide 8: ~$16 Billion Transportation Payments Processed
TRANSPORTATION PAYMENTS PROCESSED Transportation Payment Amounts Processed (in millions) COMBINED TRANSPORTATION PAYMENTS ANNUALIZED RUN RATE ~$16 BILLION $2,218.6 55% $4,034.0 $1,815.4 45% Triumph Business Capital Triumph Business Capital $2,218.6 55% TriumphPay $1,815.4 45% TriumphPay Data is for
Slide 9: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING CLIENT PORTFOLIO MIX Yield of 13.81% in the current quarter 89% Average annual charge-off rate of 0.37% over the past 3 years 11% Transportation Non-Transportation $2,500 $2,400,000 2,400,000 Total Purchases (in thousands) Number of Invoices Purchased $2,100,00
Slide 10: Carrier Payment Platform
CARRIER PAYMENT PLATFORM CLIENTS ON PLATFORM INVOICE AND PAYMENT TRENDS 8,000 $8,000 7,000 $7,000 Payment Amounts Processed 6,000 $6,000 Number of Invoices (in thousands) 5,000 $5,000 (in millions) 4,000 $4,000 3,000 $3,000 2,000 $2,000 1,000 $1,000 - $- 4Q19 1Q20 2Q20 3Q20 4Q20 Total payment amount
Slide 11: Asset Quality
ASSET QUALITY NCOs / AVERAGE LOANS NPAs / TOTAL ASSETS 0.15% 2.4% Non-performing Assets 2.1% 0.12% Net Chargeoffs 1.8% 0.09% 1.5% 1.2% 0.06% 0.9% 0.6% 0.03% 0.3% 0.00% 0.0% 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 PAST DUE / TOTAL LOANS ACL / TOTAL LOANS 3.50% 2.00% 3.00% 2.50% 1.50% Past D
Slide 12: COVID-19 Exposure
COVID-19 EXPOSURE Exposure to industries most impacted by COVID-19 as of December 31, 2020 Total Exposure1 Loans in Deferral Industry (millions) % of Gross Loans (millions) Retail $213.1 4.3% $− Hospitality $125.8 2.5% $41.8 Energy $86.8 1.7% $13.3 Health Care/Senior Care $44.8 0.9% $− Restaurants $
Slide 13: COVID-19 Loan Deferrals
COVID-19 LOAN DEFERRALS Loans modified for borrowers impacted by the COVID-19 pandemic have remained flat from the prior quarter. Balance of Loans in % of Deferral Total Loans Portfolio (Dollars in millions) 3Q20 4Q20 4Q20 4Q20 Commercial $16.8 $14.6 $1,563.0 1% Factored receivables $− $− $1,120.8 −
Slide 14: Deposit Mix
DEPOSIT MIX December 31, 2020 Other Brokered time brokered Changes From June 30, 2019(1) to deposits deposits 11% 10% December 31, 2020: Certificates of Non-interest bearing demand up deposit $669 million from 19% to 29% 17% Non-interest of deposit base bearing demand 29% CD balances down from 31% t
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS As of and For the Thre e Months Ende d Key Metrics December 31, Se pte mber 30, June 30, March 31, De cembe r 31, 2020 2020 2020 2020 2019 Performance ratios - annualiz ed Return on average assets 2.21% 1.65% 0.99% (0.36%) 1.31% Return on average tangible common equity (ROAT CE)
Slide 16: Platform Overview – Branch Network
PLATFORM OVERVIEW – BRANCH NETWORK BRANCH LOCATIONS as of December 31, 2020 63 TOTAL BRANCHES 38 in Colorado 15 in Illinois 3 in Iowa 3 in New Mexico 2 in Kansas 2 in Texas PAGE 16
Slide 17: Platform Overview – Lending
PLATFORM OVERVIEW – LENDING GEOGRAPHIC LENDING CONCENTRATIONS1 as of December 31, 2020 6% Iowa 12% 17% Illinois Colorado 1% Kansas 2% New Mexico 22% Texas 1 States with a physical branch presence. Excludes factored receivables PAGE 17
Slide 18: 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 December 31st, our balance sheet reflected short-term deferrals on outstanding loan balances of $10
Slide 19: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation 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) 2020 2020 2020 2020 2019 Net income available to common stockholders $ 31,
Slide 20: Non-GAAP Financial Reconciliation (cont'd)
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) 2020 2020 2020 2020 2019 Adjusted net non-interest expense to ave