Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Q3 2019 Earnings Presentation
24 slides from Triumph Financial's earnings presentation, Oct 16, 2019
Slide 1: Q3 2019 Earnings Release
Q3 2019 earnings release October 16, 2019 Exhibit 99.2
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: Company Overview
COMPANY 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.triumphbancor
Slide 4: Platform Overview – Branch Network
PLATFORM OVERVIEW – BRANCH NETWORK PAPAGE GE 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 5: Platform Overview – Lending
PLATFORM OVERVIEW – LENDING PAG PAGE E 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 6: 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 7: Long Term Performance Goals vs Actual
PAPAGE GE 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
Slide 8: Loan Portfolio
LOAN PORTFOLIO PAGEPAGE 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 portfoli
Slide 9: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL PAGEPAGE 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 milli
Slide 10: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING PAGE 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 Inte
Slide 11: Impact of Spot Rates on Truck Orders
IMPACT OF SPOT RATES ON TRUCK ORDERS PAGE PAGE * SOURCE: Freightwaves.com SONAR 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 lea
Slide 12: 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 13: 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 14: Carrier Payment Platform
CARRIER PAYMENT PLATFORM CLIENTS ON PLATFORM PAGE
Slide 15: Asset Quality: NCOs, NPAs, Acquired Loans, ALLL
NCOs / AVERAGE LOANS NPAs / TOTAL ASSETS 0.21% g ae 2 0.18% 3 € 218% $ 0.15% P15% 2 ete 50-12% = 12% 5 0.09% £ 09% 3 0.06% 206% 2 2 0.03% £ 0.3% 0.00% 200% 3018 4Q18- «1019 2Q19_3a19 3018 4Q18 1Q19, 2019 3Q 19 ACQUIRED LOANS ALLL / TOTAL LOANS @ $26,009 ——_____________________ $1,800 | 1.00% = $1,60
Slide 16: Deposit Mix
DEPOSIT MIX PAGPAGE E *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 17: 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 18: 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 19: 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 20: 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 21: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PPAGE AGE 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 Quar
Slide 22: Appendix
Rethink Vanilla. APPENDIX ~ TRIUMPH
Slide 23: Factoring
Factoring 101 PAGE Client Account Debtor 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
Slide 24: TriumphPay
TriumphPay 101 PAGE TriumphPay Economics: Client approves invoice for $2,000. Payment terms are 21 days. Carrier opts for QuickPay. Triumph pays the carrier $1,980 same day or next day. The $20 difference represents the QuickPay fee. In this example arrangement, that fee is then split between the br