Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — IPO Roadshow (June 2020)
20 slides from Triumph Financial's IPO roadshow presentation, Jun 16, 2020
Slide 1: Investor Presentation
Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-237663 June 16, 2020 Investor PresentationIssuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-237663 June 16, 2020 Investor Presentation
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. Any statements about Triumph Bancorp, Inc.’s(“Triumph,”“we,”“us” or“our”) expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical fact
Slide 3: Preliminary Term Sheet
PRELIMINARY TERM SHEET Issuer (Exchange: Ticker) Triumph Bancorp, Inc. (Nasdaq: TBK) Security Depositary shares, each representing a 1/40th interest in a share of Series C Fixed-Rate Non- Cumulative Perpetual Preferred Stock (“Series C Preferred Stock”) Proposed Ticker / Exchange TBKCP / Nasdaq Prop
Slide 4: 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 5: 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 P A G E 5PLATFORM OVERVIEW – BRANCH NETWORK BRANCH LOCATIONS as of March 31, 2020 61 TOTAL BRANCHES § 37 in Colorado §
Slide 6: Platform Overview – Lending
PLATFORM OVERVIEW – LENDING 1 GEOGRAPHIC LENDING CONCENTRATIONS as of March 31, 2020 6% Iowa 13% Illinois 19% Colorado 1% Kansas 2% New Mexico 26% Texas 1 States with a physical branch presence. Excludes factored receivables P A G E 6PLATFORM OVERVIEW – LENDING 1 GEOGRAPHIC LENDING CONCENTRATIONS as
Slide 7: 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). th § As of April 15 , we have executed 404 deferrals on outstanding loan balances of $233 million. We have
Slide 8: COVID-19 Exposure
COVID-19 EXPOSURE March 31, 2020 exposure to industries most impacted by COVID-19 1 Total Exposure (millions) Industry % 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% 1 1 Total Exposure Total Exposure (mill
Slide 9: 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 $(4.5) million − The commercial finance portfolio increased $135.1 million, the Net loss to common stockholders national lending portfolio increased $6
Slide 10: Long Term Performance Goals vs Actual Q1
LONG TERM PERFORMANCE GOALS VS ACTUAL Q1 NET INTEREST INCOME CREDIT COSTS TO AVERAGE ASSETS Goal Goal < 0.30% PRE-PROVISION RETURN ON 6.00 - 6.50% NET REVENUE AVERAGE ASSETS Q1: 1.42% Q1: 5.12% Goal Goal > 3.00% > 2.00% TAXES NET OVERHEAD RATIO Q1: 1.00% Q1: (0.36%) Goal Goal 3.00 - 3.50% ~ 0.57% Q1
Slide 11: 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 $4,325.1 $2,027.6 equipment finance produce top tier 47% return on assets $911.9 21% NATIONAL LENDING M
Slide 12: 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% 48% 25% $2,027.6 74% $1,385.6 $911.9 81% 19% 1% 18% REAL ESTATE Commercial Real Estate $ 985.8 Construction, Land & Development $ 198.1 FACTORED RECEIV
Slide 13: Triumph Business Capital
TRIUMPH BUSINESS CAPITAL FACTORING CLIENT PORTFOLIO MIX § Yield of 16.13% in the current quarter 80% § Average annual charge-off rate of 0.42% over the past 3 years 20% Transportation Non-Transportation $1,600,000 1,000,000 $2,000 900,000 $1,400,000 $1,800 800,000 $1,600 $1,200,000 700,000 $1,400 $1
Slide 14: 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 15% § E
Slide 15: Carrier Payment Platform
CARRIER PAYMENT PLATFORM CLIENTS ON PLATFORM INVOICE AND PAYMENT TRENDS 2,200 $2,500 2,000 1,800 $2,000 1,600 1,400 $1,500 1,200 1,000 $1,000 800 600 $500 400 200 - $- 1Q19 2Q19 3Q19 4Q19 1Q20 Total payment amounts processed (annualized) Total invoices processed (annualized) [Bar/Line Chart] Invoice
Slide 16: Loan Portfolio: Credit Quality
LOAN PORTFOLIO NCOs / AVERAGE LOANS NPAs / TOTAL ASSETS 2.4% 0.21% 2.1% 0.18% 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% $20,000 $2,000 1.00% $15,000 $1,500 0.75% $10,0
Slide 17: Deposit Mix
DEPOSIT MIX Deposit Balances Deposit Mix $4,000 1.6% March 31, 2020 Brokered deposits $3,500 1.4% 8% Certificates of deposit $3,000 1.2% 29% $2,500 1.0% Non-interest bearing demand $2,000 0.8% 23% $1,500 0.6% $1,000 0.4% Savings 10% $500 0.2% Interest bearing $0 0.0% Money market demand 1Q19 2Q19 3Q
Slide 18: Financial Highlights
FINANCIAL HIGHLIGHTS As of and For the Three Months Ended Key Metrics March 31, December 31, September 30, June 30, March 31, 2020 2019 2019 2019 2019 Performance ratios - annualized Return on average assets (0.36%) 1.31% 1.17% 1.09% 1.33% (1) Return on average tangible common equity (ROATCE) (4.09%
Slide 19: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation As of and for the Three 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 $ 647,54
Slide 20: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont'd) For the Three Months Ended For the Three 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 income