Attached files
| file | filename |
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| EX-99.1 - EX-99.1 - Triumph Bancorp, Inc. | d884286dex991.htm |
| 8-K - 8-K - Triumph Bancorp, Inc. | d884286d8k.htm |
 INVESTOR
DECK
March 4, 2015
LIKE NO OTHER
Exhibit 99.2 |
 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 identify
forward-looking statements by the use of forward-looking terminology such as “believes,”
“expects,” “could,” “may,” “will,” “should,”
“seeks,” “likely,” “intends,” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases
or similar words or phrases that are predictions of or indicate future events or trends and
that do not relate solely to historical matters. You can also identify forward-looking
statements by discussions of strategy, plans or intentions. Forward-looking statements
involve numerous risks and uncertainties and you should not rely on them as predictions
of future events. Forward-looking statements depend on assumptions, data or methods that
may be incorrect or imprecise and we may not be able to realize them. We do not
guarantee that the transactions and events described will happen as described (or that they
will happen at all). The following factors, among others, could cause actual results and
future events to differ materially from those set forth or contemplated in the forward-looking statements: our limited operating history as an integrated company; business
and economic conditions generally and in the bank and non-bank financial services
industries, nationally and within our local market area; our ability to mitigate our risk
exposures; our ability to maintain our historical earnings trends; risks related to the
integration of acquired businesses and any future acquisitions; changes in management
personnel; interest rate risk; concentration of our factoring services in the transportation
industry; credit risk associated with our loan portfolio; lack of seasoning in our loan
portfolio; deteriorating asset quality and higher loan charge-offs; time and effort
necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we
make in establishing reserves for probable loan losses and other estimates; lack of liquidity;
fluctuations in the fair value and liquidity of the securities we hold for sale;
impairment of investment securities, goodwill, other intangible assets or deferred tax assets;
risks related to our asset management business; our risk management strategies;
environmental liability associated with our lending activities; increased competition in the
bank and non-bank financial services industries, nationally, regionally or locally, which
may adversely affect pricing and terms; the obligations associated with being a public company;
the accuracy of our financial statements and related disclosures; material weaknesses in
our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and
other legal proceedings against us or to which we become subject; changes in carry-forwards
of net operating losses; changes in federal tax law or policy; the impact of recent and
future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, such as the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the “Dodd-Frank Act”) and their application by our regulators;
governmental monetary and fiscal policies; changes in the scope and cost of the Federal Deposit
Insurance Corporation insurance and other coverages; failure to receive regulatory approval for
future acquisitions; increases in our capital requirements; and risk retention
requirements under the Dodd-Frank Act.
While forward-looking statements reflect our good-faith beliefs, they are not
guarantees of future performance. All forward-looking statements are necessarily only estimates
of future results. Accordingly, actual results may differ materially from those expressed in or
contemplated by the particular forward-looking statement, and, therefore, you are
cautioned not to place undue reliance on such statements. Further, any
forward-looking statement speaks only as of the date on which it is made, and we undertake no
obligation to update any forward-looking statement to reflect events or circumstances after
the date on which the statement is made or to reflect the occurrence of unanticipated
events or circumstances, except as required by applicable law. NON-GAAP FINANCIAL MEASURES
This presentation includes certain non-GAAP financial measures intended to supplement, not
substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial
measures to GAAP financial measures are provided at the end of the presentation. See page 17 of
this presentation for additional information. Numbers in this presentation may not sum
due to rounding. Unless otherwise referenced, all data presented is as of 12/31/2014.
|
 PAGE 3
(1)
Triumph
Savings
Bank,
SSB
d/b/a
Triumph
Commercial
Finance;
(2)
Triumph
Community
Bank
N.A.
d/b/a
Triumph
Healthcare
Finance;
(3)
Advance
Business
Capital
LLC
d/b/a
Triumph
Business
Capital;
(4)
Number
of
states
represents
states
with
branches,
loan
production
offices
or
sales
personnel;
(5)
492.5
full
time
equivalent
employees.
PLATFORM OVERVIEW
$1.4
billion
in assets
states
(4)
12
517
team
members
(5)
(1)
(3)
(2)
Headquartered in Dallas, Texas, Triumph Bancorp, Inc. (NASDAQ: TBK) is a financial holding company
with a diversified
line
of
community
banking,
commercial
finance
and
asset
management
activities.
www.triumphbancorp.com |
 HOW
WE GO TO MARKET Community
Banking
Factoring
Asset Based
Lending
Equipment
Finance
Asset
Management
Commercial Finance
Focused on
reaching our
communities
through service,
selling and
saturation
Emphasis on long-
term customer
relationships
Demonstrated ability
to work with clients
throughout
economic cycles
Focused on cross-
selling additional
products and
services to enhance
relationships
A bank for all
people, committed
to their financial
goals in every stage
of life
Offered at our
Triumph Business
Capital subsidiary
and at Triumph
Savings Bank under
our Triumph
Commercial Finance
brand
Following over 10
years in the
business, Triumph
Business Capital is
among the largest
and most respected
discount factors in
the transportation
sector
Expanding
operations into
staffing, distribution
and other sectors
Offered under our
Triumph
Commercial Finance
and Triumph
Healthcare Finance
brands
Decades of
experience in our
leadership team
that has a proven
track record in credit
discipline
Specialized industry
expertise in
healthcare ABL
Relationship-based
lending built around
knowing our clients
and their businesses
Offered under our
Triumph
Commercial Finance
brand
National lending
platform focused on
transportation,
construction, and
waste management
Multi-use collateral
with a broad and
active resale
market, revenue
producing, long
economic life and
low risk of
obsolescence
Direct sales model
built on long term
relationships, many
going back over 10
years
Offered through
Triumph Capital
Advisors
$1.7 billion in assets
under management,
including active
CLOs and
warehouse assets
as of 03/03/15
Focuses on issuing
and managing
collateralized loan
obligations (CLOs)
Led by a team with
decades of
experience who has
been involved in the
issuance of nearly
$30 billion of CLOs
4 CLOs under
management and 1
CLO currently in
warehouse as of
03/03/15
PAGE 4 |
 PAGE 5
Purchased Triumph Healthcare Finance asset
based lending group
Triumph Capital Advisors issued two CLOs
and began warehousing a third
Triumph Community Bank $12.6 million pretax
branch sale gain
Completed initial public offering raising net
proceeds of $83.8 million
Named one of the Best Companies to Work
for in TEXAS in 2015 by the Texas
Association of Business, after being named
a
Best Place to Work in Dallas in 2013 and
2014 by the Dallas Business Journal
$16.9 million
Net income to common stockholders
2014 HIGHLIGHTS
LOANS
14.2%
$124.8 million
loan growth
DEPOSITS
11.5%
$120.4 million
deposit growth
ROA
1.46%
Return on
Assets
TCE/TA
14.0%
Tangible Common
Equity / Tangible
Assets |
 PAGE 6
FINANCIAL HIGHLIGHTS
(1)
The Company uses certain non-GAAP financial measures to provide meaningful
supplemental information regarding the Company's operational performance and to enhance investors' overall
understanding of such financial performance.
(2)
Asset quality ratios exclude loans held for sale
Key Metrics
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
2014
2014
2014
2014
2013
Performance
ratios
-
annualized
Return on average assets
0.78%
3.01%
0.88%
1.19%
3.99%
Return on average tangible common equity (ROATCE)
(1)
5.11%
34.26%
8.98%
13.00%
48.88%
Yield on loans
8.98%
8.66%
8.83%
9.17%
9.38%
Cost of total deposits
0.52%
0.48%
0.42%
0.43%
0.47%
Net interest margin
(1)
6.58%
6.69%
6.58%
6.85%
6.68%
Net noninterest expense to average assets
(1)
4.44%
4.48%
3.99%
3.92%
3.82%
Efficiency ratio
(1)
78.58%
78.29%
71.78%
69.40%
69.06%
Asset Quality
(2)
Nonperforming assets to total assets
1.73%
2.05%
1.82%
1.86%
2.03%
ALLL to total loans
0.88%
0.75%
0.67%
0.58%
0.41%
Net charge-offs to average loans
0.03%
0.03%
0.01%
(0.01%)
0.02%
Capital
Tier 1 capital to average assets
15.92%
12.20%
11.00%
11.89%
12.87%
Tier 1 capital to risk-weighted assets
19.56%
14.59%
12.66%
14.32%
14.11%
Total capital to risk-weighted assets
20.35%
15.27%
13.22%
14.78%
14.47%
Market
Book value per share
12.68
$
14.18
$
13.23
$
12.94
$
12.60
$
Tangible book value per share
(1)
11.06
$
11.17
$
10.08
$
10.12
$
9.70
$
Basic earnings per common share
0.14
$
0.96
$
0.23
$
0.32
$
1.17
$
Diluted earnings per common share
0.14
$
0.91
$
0.23
$
0.32
$
1.12
$
As of and For the Three Months Ended |
 PAGE 7
REAL ESTATE
Commercial Real Estate
Construction, Land & Development
1-4 Family Residential
Farmland
COMMERCIAL
CONSUMER
MORTGAGE WAREHOUSE
Loans HFI = $1,005.9
million
4Q14 Yield = 8.98%
GAAP
(1)
Chart
data
labels
–
dollars
in
millions
(1)
Adjusted yield on loans of 8.29% excluding discount accretion.
HEALTHCARE ASSET
BASED LENDING
EQUIPMENT FINANCE
FACTORED RECEIVABLES
ASSET BASED LENDING
LOAN PORTFOLIO DETAIL
Community Banking / Other
Commercial Finance
62%
27%
2%
9%
$375.4
37%
$630.5
63%
28%
11%
13%
48%
249.2
$78.7
$22.5
$11.9
$55.1
$170.1
$42.9
$180.9
$106.4
$41.8
$46.4 |
 PAGE 8
LOAN MIX, YIELD AND GROWTH
0%
2%
4%
6%
8%
10%
12%
14%
0
200
400
600
800
1,000
1,200
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
Community Banking / Other
Factored receivables
Equipment
Asset based lending (General)
Asset based lending (Healthcare)
Adjusted Loan Yields |
 LOAN
YIELDS AND NET INTEREST MARGIN
PAGE 9 |
 PAGE
10 DEPOSIT MIX, RATE AND GROWTH
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
Brokered deposits
Certificates of deposit
Interest bearing deposits
Noninterest bearing demand
Cost of total deposits
Cost of interest bearing deposits |
 PAGE
11 NONINTEREST INCOME
Note: Excludes $12.6 million in branch sale gains in Q3 of 2014 and $9.0 million of bargain purchase
gains in Q4 of 2013 for comparability purposes 0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Service charges on deposits
Card income
Fee income
Asset management fees
Other
Noninterest income as a % of total revenue
— |
 NONINTEREST EXPENSE
Noninterest expense = $32.7
million
Efficiency Ratio = 73.1%
Noninterest expense = $69.2
million
Efficiency Ratio = 74.7%
Full Year 2013
Full Year 2014
Chart
data
labels
–
dollars
in
thousands
PAGE 12
Salaries and
employee benefits
$20,737
Occupancy,
furniture and
equipment
$2,465
Professional fees
$2,460
Advertising and
promotion
$682
Communications
and technology
$1,413
Other
$4,967
Salaries and
employee benefits
$42,131
Occupancy,
furniture and
equipment
$5,474
Professional fees
$3,574
Advertising and
promotion
$2,594
Communications
and technology
$3,748
Other
$11,681 |
 ASSET QUALITY
PAGE 13
-0.1%
0.0%
0.1%
0.2%
0.3%
0.4%
0.5%
0.6%
(200)
-
200
400
600
800
1,000
1,200
1,400
1,600
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
Net Chargeoffs (NCOs)
NCOs / Average Loans
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
-
5.0
10.0
15.0
20.0
25.0
30.0
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
Non-Performing Assets (NPAs)
NPAs / Assets |
 PAGE
14 Coverage Analysts:
Brad Milsaps -
Sandler O’Neill & Partners
John Pancari -
Evercore ISI
Jared Shaw -
Wells Fargo Securities, LLC
Jefferson Harrelson -
Keefe, Bruyette and Woods
Bill Carcache -
Nomura Securities International
INVESTMENT CONSIDERATIONS
•
We are an entrepreneurial financial services company that seeks to balance
financial returns with franchise value creation
•
We prefer to spread our risk all along the economic continuum (start-ups to
mature businesses) through a variety of community banking and commercial
finance products and services •
We provide bundled services (insurance, treasury management, etc.) which
contribute to operational efficiency, client retention and relational
pricing power •
We leverage a highly experienced, well respected executive leadership team who has
“been there, done that” at
much
larger
institutions
•
Our community banking and commercial finance lending operations are built on
policies, processes and, most importantly, people that have successfully
navigated multiple credit cycles 0.85
0.90
0.95
1.00
1.05
1.10
1.15
1.20
Normalized as of 11/7/2014 through 12/31/2014
TBK
BKX Index
CBNK Index |
 APPENDIX
LIKE NO OTHER |
 OIL
AND GAS DETAIL As part of our ongoing operations, Triumph lends in the energy
space in Texas and across the nation. Our activities consist of
indirect transactions with short durations or to customers borrowing on mostly
multi-use assets. We do not participate in production or reserve
based lending. ASSET BASED LENDING
We have approximately $16.4 million in exposure to energy
related clients. These loans are mostly working capital
loans where we maintain dominion of cash. We typically
average less than 45 days exposure with these clients.
COMMUNITY BANKING
We currently do not have any material exposure in our
community banking portfolio.
FACTORING
We have exposure and factor approximately $20.5 million
for transportation clients who haul for energy related
account debtors. A small portion of these provide
miscellaneous oilfield services unrelated to trucking
(roustabout, welding, tank cleaning, etc.). We perform
regular credit checks on the account debtors and average
between 60 and 74 days exposure.
EQUIPMENT
We have approximately $26.3 million in exposure to energy
related clients. Most of these loans are secured by multi-
use equipment not directly tied to the energy industry, such
as trucks, trailers and cranes for which there is a robust
secondary market.
PAGE 16 |
 PAGE
17 NON-GAAP FINANCIAL
RECONCILIATION
Metrics and non-GAAP financial reconciliation
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
(Dollars in thousands, except per share amounts)
2014
2014
2014
2014
2013
Net income available to common stockholders
2,021
$
9,495
$
2,285
$
3,148
$
11,318
$
Average tangible common equity
156,888
109,944
102,107
98,198
91,865
Return on average tangible common equity (ROATCE)
5.11%
34.26%
8.98%
13.00%
48.88%
Efficiency ratio:
Net interest income
21,329
$
20,395
$
19,881
$
18,855
$
17,358
$
Noninterest income
3,721
15,804
2,633
2,609
11,522
Operating revenue
25,050
36,199
22,514
21,464
28,880
Less: gain on branch sale
—
12,619
—
—
—
Less: bargain purchase gain
—
—
—
—
9,014
Adjusted operating revenue
25,050
$
23,580
$
22,514
$
21,464
$
19,866
$
Total noninterest expenses
19,685
$
18,461
$
16,160
$
14,896
$
14,657
$
Less: merger and acquisition expenses
—
—
—
—
938
Adjusted noninterest expenses
19,685
$
18,461
$
16,160
$
14,896
$
13,719
$
Efficiency ratio
78.58%
78.29%
71.78%
69.40%
69.06%
Net noninterest expense to average assets ratio:
Total noninterest expenses
19,685
$
18,461
$
16,160
$
14,896
$
14,657
$
Less: merger and acquisition expenses
—
—
—
—
938
Less: noninterest income, excluding gain on branch sale and bargain
purchase gain
3,721
3,185
2,633
2,609
2,508
Adjusted net noninterest expenses
15,964
$
15,276
$
13,527
$
12,287
$
11,211
$
Average total assets
1,427,475
1,354,207
1,359,503
1,271,024
1,164,758
Net noninterest expense to average assets ratio
4.44%
4.48%
3.99%
3.92%
3.82%
As of and For the Three Months Ended |
 PAGE
18 NON-GAAP FINANCIAL
RECONCILIATION
Metrics and non-GAAP financial reconciliation (cont'd)
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
($ in thousands, except per share amounts)
2014
2014
2014
2014
2013
Reported yield on loans
8.98%
8.66%
8.83%
9.17%
9.38%
Effect of accretion income on acquired loans
(0.69%)
(0.63%)
(1.08%)
(1.44%)
(1.69%)
Adjusted yield on loans
8.29%
8.03%
7.75%
7.73%
7.69%
Reported net interest margin
6.58%
6.69%
6.58%
6.85%
6.68%
Effect of accretion income on acquired loans
(0.53%)
(0.50%)
(0.84%)
(1.12%)
(1.25%)
Adjusted net interest margin
6.05%
6.19%
5.74%
5.73%
5.43%
Total stockholders' equity
237,509
$
149,931
$
140,027
$
137,184
$
133,600
$
Less: Preferred stock liquidation preference
9,746
9,746
9,746
9,746
9,746
Total common stockholders' equity
227,763
140,185
130,281
127,438
123,854
Less: Goodwill and other intangibles
29,057
29,783
31,043
27,792
28,518
Tangible common stockholders' equity
198,706
$
110,402
$
99,238
$
99,646
$
95,336
$
Common shares outstanding
17,963,783
9,886,778
9,845,819
9,846,096
9,832,585
Tangible book value per share
11.06
$
11.17
$
10.08
$
10.12
$
9.70
$
Total assets at end of period
1,447,898
$
1,347,798
$
1,407,072
$
1,297,110
$
1,288,239
$
Less: Goodwill and other intangibles
29,057
29,783
31,043
27,792
28,518
Adjusted total assets at period end
1,418,841
$
1,318,015
$
1,376,029
$
1,269,318
$
1,259,721
$
Tangible common stockholders' equity ratio
14.00%
8.38%
7.21%
7.85%
7.57%
As of and For the Three Months Ended |