Benefits of Revenue Diversification in Banking

By: Sharon J. Lorman
Jeffrey P. Marsico
Andrew S. Rietz

Guest: W. Brad Voss, Executive Vice President and Chief Financial Officer Triumph Bancorp, Inc. (NASDAQ: TBK) and TBK Bank, SSB.

Podcast Show Notes:

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Topic: Benefits of Revenue Diversification in Banking
Insights from Brad Voss, EVP Chief Financial Officer, Triumph Bancorp, Inc.

For the past decade, Jeff Marsico, President of The Kafafian Group, has searched annually in December of each year for the Top 5 financial institutions in five-year total return to shareholders. This analysis supports the premise that banks that focus on year-over-year returns tend to cut strategic investments come budget time, which hurts market position, earnings power and future relevance. Short term focus is a common trait of banks that focus on shareholder primacy over stakeholder primacy. A 2021 winner of Jeff’s analysis was Triumph Bancorp, Inc. (“Triumph”) headquartered in Dallas, Texas. Triumph has approximately $6B in assets and provides commercial and consumer banking products focused on meeting client needs in Texas, Colorado, Kansas, New Mexico, Iowa and Illinois. Triumph also serves a national client base with carrier payment solutions through TriumphPay, invoice factoring through Advance Business Capital LLC d/b/a Triumph Business Capital (or TBC), insurance through Triumph Insurance Group, Inc. and equipment lending and asset based lending through Triumph Commercial Finance. TriumphPay is a prime case study of banks making strategic investments in a changing environment to benefit their stakeholders long-term. With the diverse revenue streams and geographies, Triumph achieved a 2021 net interest margin of 6.72%, driving a 2021 ROAA of 1.87% and a ROAE of 14.10%. Join us as Brad Voss, EVP and CFO of Triumph, tells us how the Company’s revenue diversification has contributed to its stellar financial condition and performance!

W. Brad Voss Biography

Executive Vice President and Chief Financial Officer
Triumph Bancorp, Inc. (NASDAQ: TBK) and TBK Bank, SSB

Mr. Voss is the Executive Vice President and Chief Financial Officer of Triumph Bancorp, Inc. (NASDAQ: TBK) and TBK Bank, SSB. With over 20 years of experience in the financial industry, Mr. Voss is responsible for all accounting and financial reporting, tax, capital markets, mergers and acquisitions, and investor relations.

Mr. Voss joined Triumph in a consulting engagement in 2011 and has served in various finance roles since joining the Company full-time in 2012. He became chief financial officer in 2021. Prior to his current role, he led balance sheet strategy, capital issuance, investments, liquidity, and funding as Executive Vice President and Treasurer of TBK Bank, SSB.

Mr. Voss joined Triumph from CSG Investments (an affiliate of Beal Bank), where he led the sourcing, analysis and execution of investments in distressed securities as Senior Vice President and Portfolio Manager. Before joining CSG Investments, Mr. Voss served as a Portfolio Manager for Highland Capital Management, L.P. Earlier in his career, he worked in institutional equity sales and research at Donaldson, Lufkin & Jenrette and then Bear Stearns.

Mr. Voss earned a Bachelor of Business Administration in accounting and finance from Texas Christian University and a Master of Business Administration from the University of Texas at Austin. He is a Chartered Financial Analyst (CFA) charter holder.

Relevant Link:
Triumph Bancorp, Inc. January 20, 2022 Q4 2021 Investor Presentation.

This podcast relates to The Kafafian Group’s Strategic Management service. Click here for more information. 

Watch for episode 76 of This Month in Banking to be released on Wednesday, April 27th, 2022, and a new episode on the last Wednesday of every month.  

Thank you for listening!