Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Investor Presentation (November 2019)
29 slides from Triumph Financial's investor presentation, Nov 14, 2019
Slide 1: Triumph Bancorp, Inc. Transportation Presentation 2019
Triumph Bancorp, Inc. Transportation Presentation 2019 Exhibit 99.1
Slide 2: Forward-Looking Statements
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 forward-looki
Slide 3: Triumph Bancorp, Inc. Overview
TRIUMPH BANCORP, INC. OVERVIEW PAGE 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
Slide 4: Transportation Fintech Platform
Transportation Fintech platform
Slide 5: We're Building the Transportation Fintech Platform
WE’RE BUILDING THE TRANSPORTATION FINTECH PLATFORM PAGE CARRIER INVOICE PRESENTMENT & BILLING FINANCING PAYMENT PAYOR AUTOMATED VERIFICATION VIRTUAL ACCOUNTS & CARDS FACTORING & QUICKPAY DATA
Slide 6: The Nexus of Billing and Payments in Trucking
THE NEXUS OF BILLING AND PAYMENTS IN TRUCKING TriumphPay connects shippers, brokers, and carriers for the purpose of settling transactions. All parties benefit from leveraging a single integrated secure platform for submitting paperwork, accessing supply chain financing options, and processing payme
Slide 7: Who Are TriumphPay and Triumph Business Capital?
PAGE WHO ARE TRIUMPHPAY AND TRIUMPH BUSINESS CAPITAL? $2B IN RUN RATE PAYMENTS 150+ BROKERS AND ONE TOP 20 BROKER 25,000+ REGISTERED CARRIERS 20% QUICK PAY ADOPTION RATE $6B INVOICES PURCHASED ANNUALLY 3.5M INVOICES PROCESSED ANNUALLY 6,500+ ACTIVE CLIENTS 48 CONTIGUOUS STATES COVERED
Slide 8: Triumph's Competitive Advantage
PAGE TRIUMPH’S COMPETITIVE ADVANTAGE OPERATIONAL COSTS STRUCTURAL CUSTOMER EXPERIENCE Verification Remittance Cash Application Capital Control Speed Price - Large Price - Small FACTORS BANK FACTORS
Slide 9: Factoring
FACTORING 101 PAGE WHAT IS FACTORING? 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 present and immediate
Slide 10: TriumphPay Economics
TRIUMPHPAY 101 PAGE TRIUMPHPAY ECONOMICS:* Client approves invoice for $2,000. Payment terms are 35 days. Carrier opts for QuickPay. Triumph pays the carrier $1,960 same day or next day. The $40 difference represents the QuickPay fee. In this example arrangement, that fee is then split between the b
Slide 11: Rethink Vanilla. Triumph & TBK Bank
Rethink Vanilla. TRIUMPH & TBK BANK ~ TRIUMPH
Slide 12: Platform Overview – Branch Network
PLATFORM OVERVIEW – BRANCH NETWORK PAGE 61 TOTAL BRANCHES 37 in Colorado 15 in Illinois 3 in Iowa 3 in New Mexico 2 in Kansas 1 in Texas BRANCH LOCATIONS as of September 30, 2019
Slide 13: Platform Overview – Lending
PLATFORM OVERVIEW – LENDING PAGE 27% Texas GEOGRAPHIC LENDING CONCENTRATIONS1 as of September 30, 2019 23% Colorado 1% Kansas 7% Iowa 14% Illinois 4% New Mexico 1 States with a physical branch presence. Excludes factored receivables
Slide 14: Q3 2019 Results and Recent Developments
Q3 2019 RESULTS AND RECENT DEVELOPMENTS PAGE Diluted earnings per share of $0.56 for the quarter Total loans held for investment portfolio growth of $373.5 million Diversified loan growth, including $35.1 million in community banking, $89.0 million in commercial finance, and $249.4 million in nation
Slide 15: Long Term Performance Goals vs Actual
PAGE NET INTEREST INCOME TO AVERAGE ASSETS Q3 5.31% Goal 6.00 - 6.50% NET OVERHEAD RATIO Q3 3.64% Goal 3.00 - 3.50% Annualized performance metrics presented are for the three months ended September 30, 2019 Reconciliations of these financial measures can be found at the end of the presentation LONG
Slide 16: Loan Portfolio
LOAN PORTFOLIO PAGE TOTAL LOANS COMMUNITY BANKING Focused on core deposit generation and business lending in the communities we serve COMMERCIAL FINANCE Factoring, asset based lending, and equipment finance produce top tier return on assets NATIONAL LENDING Mortgage warehouse to provide portfolio di
Slide 17: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL PAGE COMMUNITY BANKING 53% of Total Portfolio NATIONAL LENDING 17% of Total Portfolio COMMERCIAL FINANCE 30% of Total Portfolio $2,211.2 $729.6 $1,276.1 Chart data labels – dollars in millions (1) Includes $4.5 million of mortgage loans held for sale (2) Includes $3.0 million o
Slide 18: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING PAGE Yield of 18.23% in the current quarter Average annual charge-off rate of 0.36% over the past 3 years 6,471 factoring clients at September 30, 2019 * On June 2, 2018, we acquired $131.0 million of transportation factoring assets via the acquisition of Interstat
Slide 19: Impact of Spot Rates on Truck Orders
IMPACT OF SPOT RATES ON TRUCK ORDERS Spot rates are highly correlated with new truck orders. The chart below shows three years of history demonstrating the relationship between spot rates and new truck orders. Greater orders of trucks, as we saw in 2018 lead to greater capacity in the market and pre
Slide 20: Triumph's Transportation Finance Opportunity
ANNUAL GROSS REVENUES (8% GDP) $750 Billion: 4 Million Trucks FOR-HIRE $400 Billion: 2.6 Million Trucks CONTRACT $225 Billion 3PLs/BROKER $175 Billion Fleet Size Nbr. Carriers Nbr. Trucks 1 to 5 189,200 300,000 6 to 25 32,200 350,000 26 to 100 8,400 400,000 101 to 1,000 2,500 550,000 Over 1,000 200
Slide 21: Transportation Finance
TRANSPORTATION FINANCE PAGE Gross transportation revenue consists of factoring revenue from transportation clients, interest and fees from commercial loans to borrowers in transportation industries, transportation related insurance commissions, and revenue from TriumphPay. Total gross revenue consis
Slide 22: Carrier Payment Platform
CARRIER PAYMENT PLATFORM PAGE CLIENTS ON PLATFORM
Slide 23: Loan Portfolio
LOAN PORTFOLIO NCOs / AVERAGE LOANS NPAs / TOTALASSETS 0.21% 24% 0.18% a $ rox 0.15% < § Sie Bor : 2 Bie & geome Foon 0.06% = gosw 0.03% 03% 0.00% 00% sore areas aga sore ats. 10192019 at ACQUIRED LOANS ALLL/ TOTAL LOANS 525000 $1,800 5 1.00% H sito E Ee. soo 8 0.75% az si20 33 z 200 EE oem ond EE s
Slide 24: Deposit Mix
DEPOSIT MIX PAGE *Deposits totaling $601.2 million and $73.5 million were assumed on September 8, 2018 in the First Bancorp of Durango, Inc. and Southern Colorado Corp. acquisitions, respectively
Slide 25: Financial Highlights
FINANCIAL HIGHLIGHTS PAGE 1) Reconciliations of non-GAAP financial measures can be found at the end of the presentation. Adjusted metrics exclude material gains and expenses related to merger and acquisition-related activities, net of tax where applicable. 2) Includes discount accretion on purchased
Slide 26: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE 43738QTD 43646QTD 43555QTD 43465QTD 43373QTD 43738YTD 43373YTD Period end date 43738 43646 43555 43465 43373 43738 43373 Quarter 3 YTD Columns hidden for March Days in Year 365 365 365 365 365 365 365 Days in Quarter 92 91 90 92 92 273 273 As of and for the Thr
Slide 27: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE 43738QTD 42916QTD 42825QTD 42460QTD 42185QTD 43738YTD 43373YTD Period end date 43738 43646 43555 43465 43373 43738 43373 Quarter 3 YTD Columns hidden for March Days in Year 365 365 365 365 365 365 365 Days in Quarter 92 91 90 92 92 273 273 As of and for the Thr
Slide 28: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE 43738QTD 42916QTD 42825QTD 42460QTD 42185QTD 43738YTD 43373YTD Period end date 43738 43646 43555 43465 43373 43738 43373 Quarter 3 YTD Columns hidden for March Days in Year 365 365 365 365 365 365 365 Days in Quarter 92 91 90 92 92 273 273 As of and for the Thr
Slide 29: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE Ratios may not recalculate due to rounding 43738QTD 43646QTD 43555QTD 43465QTD 43373QTD 43738YTD 43373YTD Period end date 43738 43646 43555 43465 43373 43738 43373 Quarter 3 YTD Columns hidden for March Days in Year 365 365 365 365 365 365 365 Days in Quarter 9
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