Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Q3 2020 Earnings Presentation
25 slides from Triumph Financial's earnings presentation, Oct 19, 2020
Slide 1: Q3 2020 Earnings Release
Q3 2020 Earnings Release October 19, 2020 Exhibit 99.2
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 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: Q3 2020 Results
Q3 2020 RESULTS PAGE Diluted earnings per share of $0.89 for the quarter Adjusted diluted earnings per share of $0.91 for the quarter excluding the transaction costs related to the receivables acquired from Transport Financial Solutions (“TFS”), net of taxes Total loans held for investment increased
Slide 5: Long Term Performance Goals vs Actual
LONG TERM PERFORMANCE GOALS VS ACTUAL Q3 NET INTEREST INCOME TO AVERAGE ASSETS Q3: 5.36% Q3 Adjusted: 5.36% Goal 6.00 - 6.50% NET OVERHEAD RATIO Q3: 3.23% Q3 Adjusted: 3.17% Goal 3.00 - 3.50% Annualized performance metrics presented are for the three months ended September 30, 2020 Reconciliations o
Slide 6: Loan Portfolio
LOAN PORTFOLIO TOTAL LOANS (in millions) 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 por
Slide 7: Loan Portfolio Detail
LOAN PORTFOLIO DETAIL COMMUNITY BANKING 41% of Total Portfolio NATIONAL LENDING 24% of Total Portfolio COMMERCIAL FINANCE 35% of Total Portfolio $2,009.7 $1,193.0 $1,686.9 Chart data labels – dollars in millions (1) Includes $19.9 million of commercial real estate loans held for sale (2) Includes $1
Slide 8: Transportation Finance
TRANSPORTATION FINANCE 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 consists of
Slide 9: Transportation Payment Amounts Processed
Transportation Payment Amounts Processed (in millions) TRANSPORTATION PAYMENTS PROCESSED $2,920.1 PAGE Triumph Business Capital TriumphPay COMBINED TRANSPORTATION PAYMENTS ANNUALIZED RUN RATE ~$12 BILLION Data is for the quarter ended September 30, 2020 Triumph Business Capital $1,758.8 60% TriumphP
Slide 10: Triumph Business Capital Factoring
TRIUMPH BUSINESS CAPITAL FACTORING Yield of 15.65% in the current quarter Average annual charge-off rate of 0.43% over the past 3 years * On July 8, 2020, we acquired $107.5 million of factored receivables from Transport Financial Solutions. On June 2, 2018, we acquired $131.0 million of transportat
Slide 11: Carrier Payment Platform
CARRIER PAYMENT PLATFORM CLIENTS ON PLATFORM [Bar/Line Chart] Invoice and Payment Trends Number of Invoices Payment Amounts Processed Total payment amounts processed (annualized) Total invoices processed (annualized) PAGE
Slide 12: Asset Quality
PAST DUE ASSET QUALITY NCOs / AVERAGE LOANS e NPAs / TOTAL ASSETS 9 24% 8 2.1% 1.8% 215% = E41 : Zo — ji. & % yh 5 0.3% C—O 3Q19 4019 1020 2020-320 3ai9. 419 «1020 2020-3020 PAST DUE / TOTAL LOANS ACL / TOTAL LOANS 2.50% 2.00% 200% — 1.50% 150% | {i —/ 7 7 3 1.00% |—___— — 1.00% | — — — — = is eee L
Slide 13: COVID-19 Exposure
COVID-19 EXPOSURE Industry Total Exposure1 (millions) % of Gross Loans Loans in Deferral (millions) Retail $202.5 4.2% $− Hospitality $129.1 2.7% $24.1 Energy $78.6 1.6% $9.0 Health Care/Senior Care $48.9 1.0% $− Restaurants $38.5 0.8% $1.2 Energy Total Exposure1 (millions) Equipment finance $43.4 F
Slide 14: COVID-19 Loan Deferrals
COVID-19 LOAN DEFERRALS (Dollars in millions) Balance of Loans in Deferral Total Loans % of Portfolio 2Q20 3Q20 3Q20 3Q20 Commercial $274.2 $16.8 $1,536.9 1% Factored receivables $− $− $1,016.3 −% Mortgage warehouse $− $− $999.8 −% Commercial real estate $269.6 $77.4 $762.5 10% Construction, land de
Slide 15: Deposit Mix
DEPOSIT MIX PAGE Changes From June 30, 2019(1) to September 30, 2020: Non-interest bearing demand up $632 million from 19% to 31% of deposit base CD balances down from 31% to 20% with an average cost of 1.66% in the current quarter Total cost of funds down by over 50% from 1.14% to 0.56% (1) June 30
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS 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 acquisition-related activities, net of tax where applicable. 2) Includes discount accretion on purchased loans of $1,159
Slide 17: Platform Overview – Branch Network
PLATFORM OVERVIEW – BRANCH NETWORK 63 TOTAL BRANCHES 38 in Colorado 15 in Illinois 3 in Iowa 3 in New Mexico 2 in Kansas 2 in Texas BRANCH LOCATIONS as of September 30, 2020 PAGE
Slide 18: Platform Overview – Lending
PLATFORM OVERVIEW – LENDING 23% Texas GEOGRAPHIC LENDING CONCENTRATIONS1 as of September 30, 2020 20% Colorado 1% Kansas 6% Iowa 11% Illinois 2% New Mexico 1 States with a physical branch presence. Excludes factored receivables PAGE
Slide 19: 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). As of September 30th our balance sheet reflected short-term deferrals on outstanding loan balances of $103.0
Slide 20: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION PAGE Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended September 30, June 30, March 31, December 31, September 30, (Dollars in thousands, except per share amounts) 2020 2020 2020 2019 2019 Net income available to common stockholders
Slide 21: Non-GAAP Financial Reconciliation (cont'd)
NON-GAAP FINANCIAL RECONCILIATION PAGE Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended September 30, June 30, March 31, December 31, September 30, (Dollars in thousands, except per share amounts) 2020 2020 2020 2019 2019 Adjusted net non-interest expense t
Slide 22: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION Ratios may not recalculate due to rounding Ratios may not recalculate due to rounding PAGE Metrics and non-GAAP financial reconciliation (cont'd) For the Three Months Ended For the Three Months Ended September 30, 2020 September 30, 2020 (Dollars in thousands, excep
Slide 23: Appendix
Appendix ot TRIUMPH
Slide 24: TFS Transaction: Day 1 Accounting
TFS TRANSACTION: DAY 1 ACCOUNTING PAGE Day 1 Acquisition Accounting (millions) Face Value of Over-Advances $62.2 Allowance for Credit Loss(1) (37.4) (1)ACL established on acquired PCD assets in purchase accounting - not through earnings. Discount (0.9) Net Over-Advances 23.8 Other Receivables 46.3 E
Slide 25: TFS Transaction: Dispute Settlement
TFS TRANSACTION: DISPUTE SETTLEMENT PAGE As of and For the Three Months Ended Key Metrics June 30, March 31, December 31, September 30, June 30, 2020 2020 2019 2019 2019 Performance ratios - annualized Return on average assets 0.99% (0.36%) 1.31% 1.17% 1.09% Return on average tangible common equity