![]() LIKE NO OTHER Q1 2015 EARNINGS RELEASE April 29, 2015 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 .Numbers in this presentation may not sum due to rounding. Unless otherwise referenced, all data presented is as of 3/31/2015. |
![]() PAGE 3 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 $1.5 billion in assets 13 states (4) 509 team members (5) PLATFORM OVERVIEW (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) 485 full time equivalent employees. (1) (3) (2) |
![]() PAGE 4 HOW WE GO TO MARKET Community Banking 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 Factoring 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 discount factors in the transportation sector Expanding operations into staffing, distribution and other sectors Asset Based Lending 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 Equipment Finance 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 Asset Management Offered through Triumph Capital Advisors $1.7 billion in assets under management, including active collateralized loan obligations (“CLOs”) and warehouse assets Focuses on issuing and managing 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 Commercial Finance |
![]() Preliminary nontaxable bargain purchase gain on Doral Money, Inc. of $12.5 million with a net of tax contribution of $11.4 million recognized in the quarter Purchased Doral Money, Inc. acquiring two additional CLOs and increasing AUM to $1.7 billion Loan growth of $17.8 million in Triumph Healthcare Finance, $11.9 million in TCF Equipment Finance and $14.8 million in our mortgage warehouse 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 $13.9 million Net income to common stockholders Q1 2015 HIGHLIGHTS COMMERCIAL FINANCE LOAN GROWTH 11.2% NIM 6.11% Net Interest Margin* (5.76% adjusted) ROA 3.93% Return on Assets TCE/TA 14.8% Tangible Common Equity / Tangible Assets* *Reconciliations of non-GAAP financial measures can be found at the end of the presentation PAGE 5 (annualized) |
![]() 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 (3) Current quarter ratios are preliminary and, beginning January 1, 2015, are calculated under the requirements of Basel III. Key Metrics Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2015 2014 2014 2014 2014 Performance ratios - annualized Return on average assets 3.93% 0.78% 3.01% 0.88% 1.19% Return on average tangible common equity (ROATCE) (1) 27.38% 5.11% 34.26% 8.98% 13.00% Yield on loans 8.50% 8.98% 8.66% 8.83% 9.17% Cost of total deposits 0.55% 0.52% 0.48% 0.42% 0.43% Net interest margin (1) 6.11% 6.58% 6.69% 6.58% 6.85% Net noninterest expense to average assets (1) 4.18% 4.44% 4.48% 3.99% 3.92% Efficiency ratio (1) 79.70% 78.58% 78.29% 71.78% 69.40% Asset Quality (2) Nonperforming assets to total assets 1.62% 1.73% 2.05% 1.82% 1.86% ALLL to total loans 0.92% 0.88% 0.75% 0.67% 0.58% Net charge-offs to average loans 0.02% 0.03% 0.03% 0.01% (0.01%) Capital (3) Tier 1 capital to average assets 17.32% 15.92% 12.20% 11.00% 11.89% Tier 1 capital to risk-weighted assets 20.68% 19.56% 14.59% 12.66% 14.32% Common equity tier 1 capital to risk-weighted assets 18.32% N/A N/A N/A N/A Total capital to risk-weighted assets 21.47% 20.35% 15.27% 13.22% 14.78% Per Share Amounts Book value per share 13.52 $ 12.68 $ 14.18 $ 13.23 $ 12.94 $ Tangible book value per share (1) 11.84 $ 11.06 $ 11.17 $ 10.08 $ 10.12 $ Basic earnings per common share 0.78 $ 0.14 $ 0.96 $ 0.23 $ 0.32 $ Diluted earnings per common share 0.76 $ 0.14 $ 0.91 $ 0.23 $ 0.32 $ As of and For the Three Months Ended |
![]() PAGE 7 REAL ESTATE Commercial Real Estate Construction, Land & Development 1-4 Family Residential Farmland COMMERCIAL MORTGAGE WAREHOUSE Loans HFI = $1,011.4 million 1Q15 Yield = 8.50% GAAP (1) Chart data labels – dollars in millions (1) Adjusted yield on loans of 8.04% excluding discount accretion. Reconciliations of non-GAAP financial measures can be found at the end of the presentation HEALTHCARE ASSET BASED LENDING EQUIPMENT FINANCE FACTORED RECEIVABLES $171.5 ASSET BASED LENDING $36.5 LOAN PORTFOLIO DETAIL Community Banking / Other Commercial Finance CONSUMER 62% 25% 2% 11% $385.8 38% $625.6 62% 31% 15% 10% 44% $11.2 $236.7 $52.2 $69.9 $157.3 $24.8 $73.6 $118.3 $59.6 |
![]() PAGE 8 LOAN MIX, YIELD AND GROWTH Community Banking / Other Factored receivables Equipment Asset based lending (General) Asset based lending (Healthcare) Adjusted Loan Yields* *Reconciliations of non-GAAP financial measures can be found at the end of the presentation 0% 2% 4% 6% 8% 10% 12% 14% 0 200 600 800 1,000 1,200 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 400 |
![]() PAGE 9 LOAN YIELDS AND NET INTEREST MARGIN 0% 2% 4% 6% 8% 10% 12% 14% 16% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% • SNL U.S. Bank $1B-$5B : Includes all Major Exchange (NYSE, NYSE MKT, NASDAQ) Banks in SNL's coverage universe with $1B to $5B in Assets as of 04/27/2015 **Reconciliations of non-GAAP financial measures can be found at the end of the presentation 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 GAAP / Reported Adjusted** SNL U.S. Bank $1B-$5B* 12.29% 12.86% 9.38% 9.17% 8.83% 8.66% 8.98% 8.50% 11.56% 12.48% 7.69% 7.73% 7.75% 8.03% 8.29% 8.04% 9.04% 9.06% 6.68% 6.85% 6.58% 6.69% 6.58% 6.11% 8.46% 8.76% 5.43% 5.73% 5.74% 6.19% 6.05% 5.76% 3.80% 3.83% 3.85% 3.74% 3.72% 3.74% 3.74% 3.70% 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 |
![]() 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 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 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 $12.5 million bargain purchase gain in Q1 2015, $12.6 million branch sale gain in Q3 2014 and $9.0 million bargain purchase gain in Q4 2013 for comparability purposes 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% — 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Service charges on deposits Card income Fee income Asset management fees Other Noninterest income as a % of total revenue |
![]() PAGE 12 Noninterest expense = $20.8 million Noninterest expense = $19.7 million Efficiency Ratio = 78.6%* Q1 2015 Q4 2014 Chart data labels – dollars in thousands NONINTEREST EXPENSE Salaries and employee benefits $13,269 Occupancy, furniture and equipment $1,572 Professional fees $1,327 Advertising and promotion $543 Communications and technology $886 Other $3,186 Salaries and employee benefits $12,752 Occupancy, furniture and equipment $1,429 Professional fees $1,146 Advertising and promotion $366 Communications and technology $961 Other $3,031 Efficiency Ratio = 79.7%* ($18.8 million adjusted*) *Q1 2015 efficiency ratio calculated on adjusted noninterest expense. Reconciliations of non-GAAP financial measures can be found at the end of the presentation. |
![]() PAGE 13 ASSET QUALITY -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 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Net Chargeoffs (NCOs) NCOs / Average Loans 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% - 5.0 10.0 15.0 20.0 25.0 30.0 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 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 Harralson - 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 experience 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 11/7/2014 12/7/2014 1/7/2015 2/7/2015 3/7/2015 Normalized as of 11/7/2014 through 3/31/2015 TBK Equity - Last Price BKX Index - Last Price CBNK Index - Last Price |
![]() APPENDIX LIKE NO OTHER |
![]() PAGE 16 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 $16.1 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 $15.0 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 70 and 80 days exposure. Payment terms have extended due to back office consolidations and closures among account debtors and this is affecting remittance routing. At this time, we do not see any increased likelihood of nonpayment by these account debtors. EQUIPMENT We have approximately $28.5 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 17 DORAL MONEY, INC. ACQUISITION DETAILS Doral Money, Inc. Transaction Highlights *Asset management fees include a performance fee of $258,000, that was payable on the first payment date of Trinitas II - 100 200 300 400 500 600 700 800 900 1,000 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Q2 2014 Q3 2014 Q4 2014 Q1 2015* Assets under management Asset management fees Triumph Capital Advisors: AUM & Fees • On March 3, 2015, we acquired Doral Money, Inc. (“DMI”), a subsidiary of Doral Bank, in connection with the FDIC’s auction process for Doral Bank • Triumph Capital Advisors (“TCA”) acquired the management contracts to two active CLOs consisting of approximately $700 million in assets under management (“AUM”) • TCA’s AUM increased to approximately $1.7 billion as a result of the transaction • TCA also acquired a $37 million shared national credit (“SNC”) portfolio and certain securities of the CLOs • The CLO securities were divested to a third party upon closing, and the SNC portfolio was liquidated, with no material gains or losses, within days of closing (Dollars in thousands) Summary of Fair Values Fair value of net assets acquired: Equity of DMI (fair value of net DMI assets) 146,455 $ CLO management contracts 1,918 Fair value of net assets acquired 148,373 Consideration Transferred: Cash paid at closing 133,263 Sales price adjustment 2,601 Consideration Transferred 135,864 Bargain purchase gain: 12,509 $ |
![]() PAGE 18 NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, (Dollars in thousands, except per share amounts) 2015 2014 2014 2014 2014 Net income available to common stockholders 13,852 $ 2,021 $ 9,495 $ 2,285 $ 3,148 $ Dilutive effect of preferred stock — — — — 192 Less: gain on branch sale, net of tax — — 7,892 — — Less: bargain purchase gain, nontaxable 12,509 — — — — Add: merger and acquisition expenses, net of tax 158 — — — — Add: incremental bonus accrual, net of tax 1,138 — — — — Less: escrow recovery from Doral Healthcare Finance, net of tax 195 — — — — Adjusted net income available to common stockholders 2,444 $ 2,021 $ 1,603 $ 2,285 $ 3,340 $ Weighted average shares outstanding - diluted 18,428,663 14,261,717 10,602,155 9,910,507 10,544,902 Less: adjusted effects of assumed Preferred Stock conversion 676,351 — 676,351 — — Adjusted weighted average shares outstanding - diluted 17,752,312 14,261,717 9,925,804 9,910,507 10,544,902 Adjusted diluted earnings per common share 0.14 $ 0.14 $ 0.16 $ 0.23 $ 0.32 $ Average common equity 234,555 $ N/A N/A N/A N/A Less: average contribution impact of Doral Money, Inc transaction 3,549 N/A N/A N/A N/A Adjusted average common equity 231,006 N/A N/A N/A N/A Adjusted return on average common equity 4.29% N/A N/A N/A N/A Average total assets 1,449,791 $ N/A N/A N/A N/A Less: average contribution impact of Doral Money, Inc transaction 3,549 N/A N/A N/A N/A Adjusted average total assets 1,446,242 N/A N/A N/A N/A Adjusted return on average total assets 0.69% N/A N/A N/A N/A As of and For the Three Months Ended |
![]() PAGE 19 NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont'd) As of and For the Three Months Ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, ($ in thousands, except per share amounts) 2015 2014 2014 2014 2014 Net income available to common stockholders 13,852 $ 2,021 $ 9,495 $ 2,285 $ 3,148 $ Average tangible common equity 205,204 156,888 109,944 102,107 98,198 Return on average tangible common equity (ROATCE) 27.38% 5.11% 34.26% 8.98% 13.00% Efficiency ratio: Net interest income 19,725 $ 21,329 $ 20,395 $ 19,881 $ 18,855 $ Noninterest income 16,659 3,721 15,804 2,633 2,609 Operating revenue 36,384 25,050 36,199 22,514 21,464 Less: gain on branch sale — — 12,619 — — Less: bargain purchase gain 12,509 — — — — Less: escrow recovery from Doral Healthcare Finance 300 — — — — Adjusted operating revenue 23,575 $ 25,050 $ 23,580 $ 22,514 $ 21,464 $ Total noninterest expenses 20,783 $ 19,685 $ 18,461 $ 16,160 $ 14,896 $ Less: merger and acquisition expenses 243 — — — — Less: incremental bonus accrual 1,750 — — — — Adjusted noninterest expenses 18,790 $ 19,685 $ 18,461 $ 16,160 $ 14,896 $ Efficiency ratio 79.70% 78.58% 78.29% 71.78% 69.40% Net noninterest expense to average assets ratio: Total noninterest expenses 20,783 $ 19,685 $ 18,461 $ 16,160 $ 14,896 $ Less: merger and acquisition expenses 243 — — — — Less: incremental bonus accrual 1,750 — — — — Less: noninterest income, excluding gain on branch sale and bargain purchase gain 4,150 3,721 3,185 2,633 2,609 Less: escrow recovery from Doral Healthcare Finance 300 — — — — Adjusted net noninterest expenses 14,940 $ 15,964 $ 15,276 $ 13,527 $ 12,287 $ Average total assets 1,449,791 1,427,475 1,354,207 1,359,503 1,271,024 Net noninterest expense to average assets ratio 4.18% 4.44% 4.48% 3.99% 3.92% |
![]() PAGE 20 NON-GAAP FINANCIAL RECONCILIATION Metrics and non-GAAP financial reconciliation (cont'd) As of and For the Three Months Ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, ($ in thousands, except per share amounts) 2015 2014 2014 2014 2014 Reported yield on loans 8.50% 8.98% 8.66% 8.83% 9.17% Effect of accretion income on acquired loans (0.46%) (0.69%) (0.63%) (1.08%) (1.44%) Adjusted yield on loans 8.04% 8.29% 8.03% 7.75% 7.73% Reported net interest margin 6.11% 6.58% 6.69% 6.58% 6.85% Effect of accretion income on acquired loans (0.35%) (0.53%) (0.50%) (0.84%) (1.12%) Adjusted net interest margin 5.76% 6.05% 6.19% 5.74% 5.73% Total stockholders' equity 252,677 $ 237,509 $ 149,931 $ 140,027 $ 137,184 $ Less: Preferred stock liquidation preference 9,746 9,746 9,746 9,746 9,746 Total common stockholders' equity 242,931 227,763 140,185 130,281 127,438 Less: Goodwill and other intangibles 30,211 29,057 29,783 31,043 27,792 Tangible common stockholders' equity 212,720 $ 198,706 $ 110,402 $ 99,238 $ 99,646 $ Common shares outstanding 17,963,783 17,963,783 9,886,778 9,845,819 9,846,096 Tangible book value per share 11.84 $ 11.06 $ 11.17 $ 10.08 $ 10.12 $ Total assets at end of period 1,472,743 $ 1,447,898 $ 1,347,798 $ 1,407,072 $ 1,297,110 $ Less: Goodwill and other intangibles 30,211 29,057 29,783 31,043 27,792 Adjusted total assets at period end 1,442,532 $ 1,418,841 $ 1,318,015 $ 1,376,029 $ 1,269,318 $ Tangible common stockholders' equity ratio 14.75% 14.00% 8.38% 7.21% 7.85% |