Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Triumph Bancorp — Q1 2021 Earnings Presentation
22 slides from Triumph Financial's earnings presentation, Apr 21, 2021
Slide 1: Q1 2021 Earnings Release
April 21, 2021 Q1 2021 Earnings Release Exhibit 99.2
Slide 2: Disclaimer: Forward-Looking Statements
PAGE 2 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 iden
Slide 3: Company Overview
PAGE 3 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.triumphbanc
Slide 4: Q1 2021 Results
PAGE 4 Q1 2021 RESULTS • Diluted earnings per share of $1.32 for the quarter • Total loans held for investment increased $87.7 million ◦ The commercial finance portfolio increased $146.4 million, the national lending portfolio decreased $30.5 million, and the community banking portfolio decreased $2
Slide 5: Loan Portfolio
PAGE 5 LOAN PORTFOLIO TOTAL LOANS (in millions) COMMUNITY BANKING Focused on core deposit generation and business lending in the communities we serve NATIONAL LENDING Mortgage warehouse to provide portfolio diversification and liquid credit to opportunistically supplement our loan portfolio $5,107.2
Slide 6: Loan Portfolio Detail
PAGE 6 LOAN PORTFOLIO DETAIL COMMUNITY BANKING 37% of Total Portfolio NATIONAL LENDING 24% of Total Portfolio COMMERCIAL FINANCE 39% of Total Portfolio $1,878.3 $1,208.1$2,020.8 Chart data labels – dollars in millions (1) Includes $5.7 million of 1-4 residential mortgage loans held for sale (2) Incl
Slide 7: Transportation Finance
PAGE 7 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 cons
Slide 8: Triumph Business Capital Factoring
PAGE 8 TRIUMPH BUSINESS CAPITAL FACTORING • Yield of 13.85% in the current quarter • Net charge-off rate of 3.95% in the current quarter* 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 9: Carrier Payment Platform
PAGE 9 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) N u m b e r o f In v o ic e s (i n t h o u s a n d s ) P a y m e n t A m o u
Slide 10: Current Manual Process
PAGE 10 Manual Process Email Paperwork Upload Paperwork Via Portal Carrier Doctype Associate with load and carrier Send Check Verification Phone Call Pay Status Call 30-45 Days Application Phone Call Phone Calls Doctype Associate with debtor and carrier Verification Phone Call Email Paperwork Pay St
Slide 11: The Network in Action
PAGE 11 Factor Portal Submit Paperwork Factor Specific Load Data Submit Paperwork Paperwork Status • Receive and Post Payment Approve • Doctype • Carrier • Load Funds drafted once per day Load Data Carrier/Load Mapping Load/Invoice Mapping Payment/Invoice Mapping Carrier/Load Mapping Manual Process
Slide 12: The Roadmap
PAGE 12 THE ROADMAP PRESENTMENT SETTLEMENT PAYMENT TriumphPay HubTran P Carriers submitting paperwork to brokers for payment P Image capture on mobile devices P Upload in web portal P Email delivery in unstructured data format P Structured data integration into TMS, HubTran or accounting system Å Ne
Slide 13: Asset Quality
PAGE 13 ASSET QUALITY N e t C h a n g e s o ff s NCOs / AVERAGE LOANS 1Q20 2Q20 3Q20 4Q20 1Q21* 0.00% 0.15% 0.30% 0.45% 0.60% 0.75% 0.90% N o n -p e r fo r m in g A s s e ts NPAs / TOTAL ASSETS 1Q20 2Q20 3Q20 4Q20 1Q21 0.0% 0.3% 0.6% 0.9% 1.2% 1.5% 1.8% 2.1% 2.4% P A S T D U E PAST DUE / TOTAL LOANS
Slide 14: COVID-19 Exposure
PAGE 14 COVID-19 EXPOSURE INDUSTRY TOTAL EXPOSURE 1 (MILLIONS) % OF GROSS LOANS LOANS IN DEFERRAL (MILLIONS) Retail $188.0 3.7% $— Hospitality $120.6 2.4% $22.2 Energy $80.5 1.6% $— Health Care/Senior Care $39.2 0.8% $— Restaurants $29.2 0.6% $6.7 ENERGY TOTAL EXPOSURE 1 (MILLIONS) RETAIL TOTAL EXPO
Slide 15: COVID-19 Loan Deferrals
PAGE 15 COVID-19 LOAN DEFERRALS (Dollars in millions) BALANCE OF LOANS IN DEFERRAL TOTAL LOANS % OF PORTFOLIO 4Q20 1Q21 1Q21 1Q21 Commercial real estate $70.0 $71.7 $784.1 9% Construction, land development, land $18.8 $1.3 $223.8 1% 1-4 family residential $1.1 $1.2 $142.9 1% Farmland $— $— $97.8 —%
Slide 16: Deposit Mix
PAGE 16 DEPOSIT MIX (1) June 30, 2019 is the quarter end prior to the strategic shift we announced during the second half of 2019. Non-interest bearing demand Interest bearing demand Individual retirement accounts Money market Savings Certificates of deposit Brokered time deposits Other brokered dep
Slide 17: Financial Highlights
PAGE 17 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 o
Slide 18: Platform Overview – Branch Network
PAGE 18 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 March 31, 2021
Slide 19: Platform Overview – Lending
PAGE 19 PLATFORM OVERVIEW – LENDING 24% Texas GEOGRAPHIC LENDING CONCENTRATIONS1 as of March 31, 2021 17% Colorado 1% Kansas 6% Iowa 13% Illinois 2% New Mexico 1 States with a physical branch presence. Excludes factored receivables
Slide 20: COVID-19 Response
PAGE 20 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 March 31, 2021, our balance sheet reflected short-term deferrals on outstanding loan balances
Slide 21: Non-GAAP Financial Reconciliation
PAGE 21 NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2020 2020 2020 2020 2019 Net income available to common stockholder
Slide 22: Non-GAAP Financial Reconciliation (cont'd)
PAGE 22 NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont'd) As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share amounts) 2020 2020 2020 2020 2019 Adjusted net non-interest expense