Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Debt Investor Presentation (September 2016)
36 slides from Triumph Financial's debt investor presentation, Sep 26, 2016
Slide 1: Subordinated Debt Offering September 2016
Subordinated Debt Offering September 2016 Exhibit 99.1
Slide 2: Offering Disclosure: Forward-Looking Information
Offering Disclosure PAGE Forward-Looking Information This slide presentation contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Privat
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures PAGE Use of Non-GAAP Financial Measures This presentation includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided at th
Slide 4: Offering Summary
Offering Summary PAGE Optional Redemption At issuer’s option beginning in 2021 at par Covenants Consistent with regulatory requirements as Tier 2 Capital Issuer / Exchange / Ticker Triumph Bancorp, Inc. / Nasdaq / “TBK” Security Holding Company Subordinated Notes due 2026 Term / Rate 10 Year NC 5 Ye
Slide 5: Platform Overview
PAGE Headquartered in Dallas, Texas, Triumph Bancorp, Inc. (NASDAQ: TBK) is a financial holding company with a diversified line of community banking, commercial finance and asset management activities team members(2) Platform Overview
Slide 6: How We Go To Market
How We Go To Market PAGE Commercial Finance Community Banking Asset Management Factoring Asset Based Lending & Equipment Finance Asset Based Lending
Slide 7: Community Banking, Factoring and Asset Based Lending
Community Banking Reach our communities through service, selling and saturation Emphasize long-term customer relationships Work with our clients throughout economic cycles Maximize value adding cross-sell opportunities A bank for all people, committed to their financial goals in every stage of life
Slide 8: How We Go To Market
How We Go To Market PAGE Commercial Finance Community Banking Asset Management Factoring Asset Based Lending & Equipment Finance Asset Based Lending
Slide 9: Community Banking
6/30/2016 Our goal is to be the dominant bank in our markets We made progress by growing deposits $85.9 million or 7.2% since June 30, 2015. Loans grew $118.6 million or 17.3% over the same period Our strategy is to serve entire communities – working class families, small business owners and major m
Slide 10: Community Banking: ColoEast Acquisition
TRANSACTION RATIONALE Expand community banking platform and support future commercial finance growth Stable, low-cost deposit franchise for a reasonable price Based in Lamar, Colorado Acquisition closed August 1, 2016 16 branches, 1 LPO in Colorado 2 branches in western Kansas $70 million transactio
Slide 11: Deposit Mix, Rate and Growth
Deposit Mix, Rate and Growth PAGE (1) (1) Consists of the following deposits: Interest Bearing Demand, Individual Retirement Accounts, Money Market, and Savings.
Slide 12: How We Go To Market
How We Go To Market PAGE Commercial Finance Community Banking Asset Management Factoring Asset Based Lending & Equipment Finance Asset Based Lending
Slide 13: Perceived Risk and Yield
Private Banking Services Traditional Commercial Lending Asset Based Lending Factoring Mezzanine and Equity YIELD PERCEPTION OF RISK Perceived Risk and Yield PAGE
Slide 14: Commercial Finance
6/30/2016 Our goal is to become a market leader for financial services to small businesses and the lower end of the middle market Growth since June 30, 2015 Equipment finance: $29.0 million (21.0%) Asset based lending: $66.4 million (51.1%) Factoring: $37.8 million (18.9%) Commercial Finance PAGE No
Slide 15: Loan Portfolio Detail
Loan Portfolio Detail Community Banking / Other Commercial Finance Loans Held for Investment PAGE Note: Financial loan information as of June 30, 2016. Dollars in millions. 42185 42277 42369 42460 42551 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Community Banking 685.02599999999995 687.54200000000003 7
Slide 16: Loan Mix, Yield and Growth
Loan Mix, Yield and Growth PAGE *Reconciliations of non-GAAP financial measures can be found at the end of the presentation
Slide 17: Asset Quality
Asset Quality 10.00% $38 $12.6 $124 emnz3 wi 5 $3.8 + 60.00% § & 53.02% 40.00% 2 2 20.00% - : 0.00% 2014 2015 12016 22016 Au re 3.61% 35% Zz 30% 2.78% 2: z 257% a Ba 2.41% g 20% 2 15% 2 10% “ 05% 0.0% : - 2013 2014 2015 12016 02.2016 1 Past Due to Total Loans (%) a TRIUMPH PAGE 17
Slide 18: Nonperforming Assets
Nonperforming Assets PAGE Nonperforming Loans as of June 30, 2016
Slide 19: How We Go To Market
How We Go To Market PAGE Commercial Finance Community Banking Asset Management Factoring Asset Based Lending & Equipment Finance Asset Based Lending
Slide 20: Asset Management
2013 * Fee Generating CLO Assets consist of CLOs for which we are asset manager and CLOs for which we provide staff & services for a fee. Warehoused CLO balances are excluded. ** Asset Management Fees include both asset management fees and staff & services fees. *** CLO Warehouse Income is the incom
Slide 21: Background and History
PAGE Background and History November, 2010: Acquired Equity Bank, SSB November, 2011: Released from all regulatory enforcement orders Acquire & Clean-up 2010 – 2011 2012 – 2014 Platform Development June, 2014: Acquired Doral Healthcare Finance, now Triumph Healthcare Finance November, 2014: Formed T
Slide 22: Disciplined, Experienced Acquiror
Disciplined, Experienced Acquiror PAGE Experienced and disciplined acquisition and integration approach Six transactions since 2012 Transactions include two whole bank transactions, an FDIC related transaction, two commercial finance platforms, and an insurance broker acquisition Bank / Market Date
Slide 23: Financial Highlights
Financial Highlights PAGE * Reconciliations of non-GAAP financial measures can be found at the end of the presentation (1) Asset quality ratios exclude loans held for sale Source: Company documents As of and For the Years Ended December 31, As of and For the Quarter Ended 2013 2014 2015 3/31/2016 6/
Slide 24: Financial Performance: Consistent Growth
PAGE Total Assets ($mm) Gross Loans Held for Investment ($mm) Total Deposits ($mm) Total Equity ($mm) Since 2013 CAGR: 13.9% Since 2013 CAGR: 20.7% Since 2013 CAGR: 8.3% Since 2013 CAGR: 24.9% Financial Performance: Consistent Growth
Slide 25: Financial Highlights
Financial Highlights PAGE *Reconciliations of non-GAAP financial measures can be found at the end of the presentation
Slide 26: Q2 2016 Highlights
Diluted earnings per share of $0.25 for the quarter Commercial finance loan portfolio growth of $78.8 million Community banking/other loan portfolio growth of $85.9 million Efficiency ratio improved to 68.74% from 73.09% at March 31, 2016 Total loans held for investment increased $165 million or 13.
Slide 27: Regulatory Capital Ratios: Consolidated
PAGE Regulatory Capital Ratios: Consolidated (1) Capital ratios shown pro forma assuming the ColoEast acquisition closed and ColoEast preferred stock was redeemed on June 30, 2016 (actual closing occurred on August 1, 2016 and preferred stock was redeemed on August 31, 2016); capital ratios are stil
Slide 28: Regulatory Capital Ratios: Bank Level
PAGE Regulatory Capital Ratios: Bank Level (1) Capital ratios shown pro forma assuming the ColoEast acquisition closed on June 30, 2016 (actual closing occurred on August 1, 2016) ; capital ratios are still subject to additional post closing purchase accounting adjustments (2) Capital ratios shown p
Slide 29: Historical and Pro Forma Interest Coverage
Historical and Pro Forma Interest Coverage PAGE Note: Assumes $50 million subordinated debt offering with100% downstreamed to the bank and an interest rate of 6.50%. Note: Assumed interest rate and amount of capital downstreamed is for illustrative purposes. $ in thousands Assumptions % of Subordina
Slide 30: Investment Highlights
Investment Highlights PAGE Entrepreneurial financial services company that seeks to balance financial returns with franchise value creation Spreads risk all along the economic continuum (start-ups to mature businesses) through a variety of community banking and commercial finance products and servic
Slide 31: Appendix
st TRIUMPH APPENDIX
Slide 32: Historical Balance Sheet
Historical Balance Sheet PAGE ($ in thousands) For the Fiscal Year Ended December 31, For the Six Months Ended, 2013 2014 2015 6/30/2016 Assets Cash and due from banks 25,352 21,312 23,447 22,567 Interest bearing deposits with other banks 60,445 139,576 81,830 39,183 Total cash and cash equivalents
Slide 33: Historical Income Statement
Historical Income Statement PAGE
Slide 34: Senior Management
Executive Vice President and General Counsel of Triumph Bancorp, Inc. Mr. Nelson also serves as Executive Vice President and General Counsel of TBK Bank and Senior Vice President, General Counsel and Chief Compliance Officer of Triumph Capital Advisors Previously, Mr. Nelson served as Vice President
Slide 35: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of such financial performance. PAGE Metrics and non-GAAP financial rec
Slide 36: Non-GAAP Financial Reconciliation (cont'd)
PAGE NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont'd.) As of and for the Year Ended As of and for the Three Months Ended December 31, December 31, December 31, March 31, June 30, (Dollars in thousands, except per share amounts) 2013 2014 2015 2016 2016 Reporte
Triumph Bancorp — Debt Investor Presentation (September 2016) on 6ix