Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Q1 2019 Earnings Presentation
22 slides from Triumph Financial's earnings presentation, Apr 17, 2019
Slide 1: Q1 2019 Earnings Release
Exhibit 99.2 Q1 2019 EARNINGS RELEASE April 17, 2019
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 and commercial finance products through its bank subsidiary, TBK Bank, SSB. www.triumphbancorp.com COMMUNITY COMMERCI
Slide 4: Platform Overview - Lending
PLATFORM OVERVIEW - LENDING Geographic Lending Concentrations1 as of March 31, 2019 7% Iowa 15% 26% Illinois Colorado 1% Kansas 5% New Mexico 23% Texas 1 Excludes factored receivables PAG PAGE 4 E4
Slide 5: Platform Overview – Branch Network
PLATFORM OVERVIEW – BRANCH NETWORK WESTERN DIVISION MIDWEST DIVISION 30 branches in Colorado 10 branches in the Quad Cities metroplex 2 branches in western Kansas 8 branches throughout northern and central Illinois MOUNTAIN DIVISION DALLAS 7 branches in Colorado Corporate Headquarters
Slide 6: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL Community Banking Loans Held for Investment Commercial Finance 1% 13% 21% 48% 31% $1,186.9 33% $2,426.0 65% 67% 6% 15% REAL ESTATE Commercial Real Estate $ 1,093.9 FACTORED RECEIVABLES Construction, Land & Development $ 145.0 Triumph Business Capital $ 534.4 1-4 Family Resident
Slide 7: Long Term Performance Goals vs Actual Q1
LONG TERM PERFORMANCE GOALS VS ACTUAL Q1 Net Interest Income to Average Assets Goal 5.50 - 6.00% Pre-Provision Credit Costs Taxes Net Revenue 5.52% Goal Goal Goal > 2.70% < 0.30% ~ 0.50% Net Overhead Ratio 1.82% 0.09% 0.40% Goal 2.80 - 3.30% 3.70% Return on Average Assets (“ROAA”) Goal > 1.80% 1.33%
Slide 8: Investment Considerations
INVESTMENT CONSIDERATIONS Normalized as of 3/31/2018 through 3/31/2019 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.70 0.60 TBK US Equity - Last Price BKX Index - Last Price CBNK Index - Last Price Coverage Analysts: Matthew Olney – Stephens, Inc. Brad Milsaps – Sandler O’Neill & Partners Brady Gailey
Slide 9: Q1 2019 Results and Recent Developments
Q1 2019 RESULTS AND RECENT DEVELOPMENTS Diluted earnings per share of $0.55 for the quarter $14.8 million Total loans held for investment portfolio Net income to common stockholders growth of $4.2 million – consistent with seasonal first quarter loan growth experienced in prior years COMMERCIAL
Slide 10: Loan Yields and Net Interest Margin
LOAN YIELDS AND NET INTEREST MARGIN 12% LOAN YIELDS AND NET INTEREST 10% 8.09% 8.33% 8.14% 7.99% 7.65% 8% 6.36% 6.59% 6.34% 6.06% 6.15% MARGIN 6% 4% 3.63% 3.66% 3.72% 3.72% 3.72% 2% 0% 1Q18 2Q18 3Q18 4Q18 1Q19 Yield on Loans* Net Interest Margin* Net Interest Margin SNL U.S. Bank $1B-$5B** *Includes
Slide 11: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING Client Portfolio Mix Yield of 17.96% in the current quarter 81% Transportation Average annual charge-off rate of 0.39% over the past 3 years Non-Transportation 6,382 factoring clients at March 31, 2019 19% 1,000,000 $2,500 $1,600,000 900,000 $2,300 6,000 $1,4
Slide 12: Triumph's Transportation Finance Opportunity
TRIUMPH’S TRANSPORTATION FINANCE OPPORTUNITY Annual Gross Revenues (8% GDP) $750 Billion : 4 Million Trucks For-Hire $400 Billion : 2.6 Million Trucks Contract 3PLs/Broker $225 Billion $175 Billion Fleet Size Nbr. Carriers Nbr. Trucks Annual Revenue Nbr. 3 PLs $ Billions 1 to 5 189,200 300,000 Inact
Slide 13: Loan Portfolio: Asset Quality
LOAN PORTFOLIO NCOs / Average Loans NPAs / Total Assets 2.4% 0.21% Non-performing Assets 2.1% 0.18% 1.8% Net Chargeoffs 0.15% 1.5% 0.12% 1.2% 0.09% 0.9% 0.06% 0.6% 0.03% 0.3% 0.00% 0.0% 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Acquired Loans ALLL / Total Loans $25,000 $4,000 1.00% Discount
Slide 14: Deposit Mix and Growth
DEPOSIT MIX AND GROWTH Deposit Growth Deposit Mix $4,000 1.6% March 31, 2019 Brokered deposits $3,500 1.4% 10% Certificates of deposit $3,000 1.2% 26% $2,500 1.0% Non-interest Deposit Balances bearing demand (in millions) 20% Rates $2,000 0.8% $1,500 0.6% Savings $1,000 0.4% 11% $500 0.2% Interest b
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS As of and For the Thre e Months Ende d Key Metrics March 31, Dece mbe r 31, Se pte mber 30, June 30, March 31, 2019 2018 2018 2018 2018 Pe rformance rati os - annual iz e d Return on average assets 1.33% 1.60% 0.90% 1.37% 1.43% (1) Return on average t angible common equity (ROAT
Slide 16: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Met rics and non-GAAP financial reconciliat ion As of and for the T hree Months Ended March 31, December 31, Sept ember 30, June 30, March 31, (Dollars in thousands, except per share am ounts) 2019 2018 2018 2018 2018 Net income available to common st ockholders $ 1
Slide 17: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Met rics and non-GAAP financial reconciliat ion (cont'd) As of and for the T hree Months Ended March 31, December 31, Sept ember 30, June 30, March 31, (Dollars in thousands, except per share am ounts) 2019 2018 2018 2018 2018 Adjusted efficiency ratio: Net int eres
Slide 18: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Met rics and non-GAAP financial reconciliat ion (cont'd) As of and for the T hree Months Ended March 31, December 31, Sept ember 30, June 30, March 31, (Dollars in thousands, except per share am ounts) 2019 2018 2018 2018 2018 T ot al stockholders' equit y $ 646,216
Slide 19: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION For t he T hree Mont hs Ended For the T hree Mont hs Ended March 31, 2019 March 31, 2019 (Dollars in thousands, except per share amounts) GAAP (Dollars in thousands, except per share am ounts) GAAP Net interest income t o average t otal assets: Credit cost s to aver
Slide 20: Appendix
APPENDIX
Slide 21: Factoring 101
Factoring 101 What is factoring? Client Account Debtor Factoring is one of the oldest forms of finance. Factoring is a financial transaction in which a business sells its accounts receivable to a third party (factor) at a discount. A business typically factors its receivable assets to meet its p
Slide 22: TriumphPay 101
Triumphpay 101 What is TriumphPay? TriumphPay Economics: TriumphPay is a reverse factoring product that connects our proprietary payment 1. Client approves invoice for $2,000. Payment terms are 21 days. processing system with a broker or third party logistics’ (3PL) transportation 2. Carrier opts fo