Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Q1 2015 Earnings Presentation
20 slides from Triumph Financial's earnings presentation, Apr 29, 2015
Slide 1: Q1 2015 Earnings Release
Exhibit 99.2 Q1 2015 EARNINGS RELEASE April 29, 2015 LIKE NO OTHER
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: Platform Overview
PLATFORM OVERVIEW 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. www.triumphbancorp.com $1.5 (1) (2) billion in assets 13 (3) states (4) 509 team memb
Slide 4: How We Go To Market
HOW WE GO TO MARKET Commercial Finance Community Asset Banking Management Asset Based Equipment Finance Factoring Lending Focused on Offered under our Offered under our Offered at our Offered through reaching our Triumph Triumph Triumph Business Triumph Capital communities Commercial Finance Commerc
Slide 5: Q1 2015 Highlights
Q1 2015 HIGHLIGHTS Preliminary nontaxable bargain purchase gain on Doral Money, Inc. of $12.5 million with a net of tax contribution of $11.4 million $13.9 million recognized in the quarter Net income to common stockholders Purchased Doral Money, Inc. acquiring two additional CLOs and increasing AUM
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS As of and For the Three Months Ended Key Metrics Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2015 2014 2014 2014 2014 Performance ratios - annualized Return on average assets 3.93% 0.78% 3.01% 0.88% 1.19% (1) Return on average tangible common equity (ROATCE) 27.38% 5.11% 34.26% 8.98
Slide 7: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL Community Banking / Other Commercial Finance 2% 11% 25% 44% $625.6 31% $385.8 62% 38% 62% 10% 15% REAL ESTATE Commercial Real Estate $236.7 Loans HFI = $1,011.4 million FACTORED RECEIVABLES $171.5 Construction, Land & Development $52.2 1-4 Family Residential $73.6 1Q15 Yield =
Slide 8: Loan Mix, Yield and Growth
LOAN MIX, YIELD AND GROWTH 1,200 14% 12% 1,000 10% 800 8% 600 6% 400 4% 200 2% 0 0% 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Community Banking / Other Factored receivables Equipment Asset based lending (General) Asset based lending (Healthcare) Adjusted Loan Yields* *Reconciliations of non-GAAP finan
Slide 9: Loan Yields and Net Interest Margin
LOAN YIELDS AND NET INTEREST MARGIN 16% 14% 12.86% 12.29% 12% 12.48% 9.38% 9.17% 11.56% 8.83% 8.66% 8.98% 10% 8.50% 8% 8.03% 8.29% 8.04% 6% 7.69% 7.73% 7.75% 4% 2% 0% 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 10% 9.04% 9.06% 9% 8% 8.46% 8.76% 6.85% 6.68% 6.58% 6.69% 6.58% 7% 6.11% 6% 6.19% 6.05% 5% 5.
Slide 10: Deposit Mix, Rate and Growth
DEPOSIT MIX, RATE AND GROWTH 1,400,000 1.6% 1.4% 1,200,000 1.2% 1,000,000 1.0% 800,000 0.8% 600,000 0.6% 400,000 0.4% 200,000 0.2% 0 0.0% 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Brokered deposits Certificates of deposit Interest bearing deposits Noninterest bearing demand Cost of total deposits Cost
Slide 11: Noninterest Income
NONINTEREST INCOME 4,500 20.0% 4,000 18.0% 16.0% 3,500 14.0% 3,000 12.0% 2,500 10.0% 2,000 8.0% 1,500 6.0% 1,000 4.0% 500 2.0% — 0.0% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Service charges on deposits Card income Fee income Asset management fees Other Noninterest income as a
Slide 12: Noninterest Expense
NONINTEREST EXPENSE Q1 2015 Q4 2014 Other Salaries and employee Communications and $3,186 benefits $12,752 Occupancy, furniture technology and equipment $886 $1,429 Advertising and Professional fees promotion $1,146 $543 Advertising and Professional fees promotion $1,327 $366 Communications and tech
Slide 13: Asset Quality
ASSET QUALITY 1,600 0.6% 1,400 0.5% 1,200 0.4% 1,000 800 0.3% 600 0.2% 400 0.1% 200 - 0.0% (200) -0.1% 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Net Chargeoffs (NCOs) NCOs / Average Loans 30.0 4.0% 3.5% 25.0 3.0% 20.0 2.5% 15.0 2.0% 1.5% 10.0 1.0% 5.0 0.5% - 0.0% 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q1
Slide 14: Investment Considerations
INVESTMENT CONSIDERATIONS • We are an entrepreneurial financial services company that seeks to balance financial returns with franchise value creation • We prefer to spread our risk all along the economic continuum (start-ups to mature businesses) through a variety of community banking and commercia
Slide 15: Appendix
st TRIUMPH APPENDIX LIKE NO OTHER a TRIUMPH
Slide 16: Oil and Gas Detail
OIL AND GAS DETAIL As part of our ongoing operations, Triumph lends in the energy space in Texas and across the nation. Our activities consist of indirect transactions with short durations or to customers borrowing on mostly multi-use assets. We do not participate in production or reserve based lend
Slide 17: Doral Money, Inc. Acquisition Details
DORAL MONEY, INC. ACQUISITION DETAILS Summary of Doral Money, Inc. Transaction Highlights (Dollars in thousands) Fair Values Fair value of net assets acquired: • On March 3, 2015, we acquired Doral Equity of DMI (fair value of net DMI assets) $ 146,455 Money, Inc. (“DMI”), a subsidiary of Doral CLO
Slide 18: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation As of and For the Three Months Ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, (Dollars in thousands, except per share amounts) 2015 2014 2014 2014 2014 Net income available to common stockholders $ 13,852 $ 2,021 $ 9,495
Slide 19: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont'd) As of and For the Three Months Ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, ($ in thousands, except per share amounts) 2015 2014 2014 2014 2014 Net income available to common stockholders $ 13,852 $ 2,021 $ 9,4
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 Three Months Ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, ($ in thousands, except per share amounts) 2015 2014 2014 2014 2014 Reported yield on loans 8.50% 8.98% 8.66% 8.83% 9.17% Effect of ac