Triumph Financial (TFIN) 22 Jul 212021 Q2 Earnings call transcript

Good day, and welcome to the Triumph Bancorp Incorporated Second Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Luke Wyse. ahead. go Please

to our Welcome Bancorp call conference Good quarter the XXXX discuss second financial to morning. Triumph results.

subject statements. Before statements. we this statements that forward-looking that company actual differ. forward-looking and no remind to and anticipated are could Those results cause get started, any presentation obligation I'd may to like revise to uncertainties risks The to you undertakes include publicly

please statement refer including If Slide to slide our you're logged online, harbor in presentation our webcast, safe on to X. available the

For Bryce by you harbor have. be our please Todd of the call website Chief our Business that statement Lending and joined made subject Capital Brenner, note Treasurer. and Aaron? All I'm morning turn to our Financial Geoff statement. to are during Brad this www.triumphbancorp.com. Chairman those happy CEO, over time, Ritterbusch, on answer to by presentation, Triumph to phone, the Officer; Aaron joining harbor may After Vice our Aaron. the that Voss, At today's questions our call Graft; this CEO and I'd like presentation safe are at we'll Fowler; Officer, safe Chief comments available any Triumph's

you, Good Luke. Thank morning.

net earned were $X.XX. costs $XX.X share. Adjusting we adjusted share per related acquisition, quarter, earnings to $X.XX for to second per the common stockholders of closing income or For million diluted the HubTran

topics. into go want on address the I specifics two I Before quarter, to

his of since and done. of wish to serves room bank joined He board Bryce has announced days Financial retirement. been a be nothing all together speaks investors over the early is we the the became mentoring and thank his the XX well-deserved Upon room, XX, promotion to on Brad witness He's as Voss will but transition. has years. July on within all deep us Brad's Bryce's built our has of he for a members Chief be finance our leadership promoted also he culmination servant directors our be in to in Bryce's and and culture of innovation, have in a best We and him with banking. team steeped Brad the importantly, retirement last the in Triumph him of Officer. teammate. team me and part continue that of my seamless our following is retirement, friend and we broad will leadership. Brad since been the depth September and great experience he retiring companion First, Bryce Fowler will should on in process steady planning today and has And X. transparency, most of succession is areas bank.

Triumph unchanged includes and and activities, of Business activities removing of a corporate. deposit it second before well reporting segment all operations we this overall is into mortgage to relationship support lending. is banking, our and monitor segment break Payments TriumphPay, relate the segment traditional and investors from company liquid progress. segment solely factoring, to it of The containing expenses unchanged consolidated equipment and topic see The easier portfolio our I the entity and for results. company. our and certain credit the Factoring in the with The reconfigured address from of change our to quarter, warehouse holding Corporate ABL, remains our consists consisting The transportation want banking activities lending, Beginning Capital. our reportable present four at before segments, the the before also both exception we Banking the as way factoring, from payments, unchanged TriumphPay to non-transportation lending to is of The as making

to things TBK for was to Now of quarter, call out. a with strong and quarter the eventful a it positive turning number

last those, Before that into under address this the break that I million to in think grew were number recurring going questions increase this, with the from not to we $X expect of If per additional bonus like elevated additional expense $X.X a goes members was have over from sure to just it's the operations quarter. stock were an million $XX given expenses as improved as I'm covering accrual for quarter it This is buckets, and $X.X $X for fees expect grants non-interest million I investors recurring is Business and one. the expense Triumph add HubTran. of operating Capital first the acquisition. through was and associated metrics appropriate made team, for largely including $X significantly HubTran team This our professional recurring was forward. compensation reflects is an at have second million expense. level and quarter HubTran few This to I new quarter, the amortization partial a year-end. HubTran quarter, would million million expense. accrual TriumphPay, our to

relate discuss compensation million $X.X additional call. and on exceptional commission this Business later Finally, sales for in TriumphPay team members the Capital volumes new to both Triumph growth and and at expense of I will

few we of quarterly results that the to interesting to expenses current facts Business expect continues $XX forward, conditions. grow and with million Triumph execute Going excellence, speak about year-end. through Capital market a the

clients. quarter, XX,XXX active crossed the second Triumph During over Business Capital

for a period into than can count client a applications is per just is new averaging It Business the that client clients because X,XXX in lift versus client owner growth more single any and in for continued XXX X,XXX July at the Triumph we fleet of a proxy month. a that significant growth, This is XXXX. quarter perfect be prior is or noteworthy given while single operator. Now, first X,XXX history. clients in pipeline The with a truck were Capital, very not strong client our QX has

the entire we than more approximately invoices, the and $XXX,XXX quarter. for increase During day also we Triumph which purchased in million purchases an first averaged $XX Business per this days over million Capital exceeded $XX of several business quarter. quarter, nearly saw X.X million

billion. quarter Triumph an invoice That's quarter. million the Business for were factoring and of was run $XX.X was sizes transportation $X,XXX Second rate volume in purchased annualized $XX.X Average Capital dollar billion $X.X of the purchases. revenue approximately invoices

Given cycle we often in the suggests that we're move of receive and transportation end to per $X.XX balance To point, questions the continue. long relative year. how of strength Everything spot size invoice understand seeing we up down that market impact TBC should this about $XXX reading the by average in our transportation or EPS about outlook the and investors economic expect our sheet, would annualized prices share. currently to through

speculate half of well into continue beginning first are the experts transportation it some to could XXXX. And

of not affect any projections comfortable the for transportation, Given multitude that variables we XXXX. are making

and over of brokers acquisition of XX Turning to X, factors. June integrations XXX the our on and systems. HubTran and and integration made closed in progress we freight relationships good TriumphPay, with brought teams the HubTran client

have We lost a following or the not broker single announcement. factor

In added $XX.X who five HubTran, acquisition negotiations couple had announcement. resulted fact, begun after million we have acquisition intangible in more the The including of $XX.X not factors until assets and to goodwill. of a million

over our amortization our assets will will acquired expense $X.X the quarters on million assets last all year. XX-Q, total but in this intangible the two of detail intangible on be of be Additional

a these we're are as of the quantitative freight freight We integrate what a additions factors brokers there factors are to XX HubTran customers to now are industry continue testament and discuss, brokers items and not or of the views, have and to While who how lot products, XXX building. we TriumphPay, teams both.

we them build as full forward to product each Our relationships out create focus network. of with is going the

You the and on XX XX can see our metrics deck. Slide of

processed X.X TriumphPay distinct invoices the carriers. million quarter, XX,XXX almost During second paying

of XX which XX, carriers all paid As the is in carriers. have months, XX% XXX,XXX over of active June we distinct last

$XX.X totaled as increase prior over TriumphPay. This approximately XXX% a from about section We've was rate XX% a $X.X quarter for payment processed metrics run Slide billion, result X matter. deck, the the XXXX. that quarter a a QX billion. investor exceptional new volume payments quarter be as and TriumphPay's annual an to want beginning on clear added increase in TriumphPay was we our around growth Second

To billion it current affairs. invoice the true broker not HubTran HubTran appropriate we specific, audit between function state validate the product and for companies the HubTran are need the That legitimate be to to to define rate volume. to is volume. pay. an serves payment annualized as and TriumphPay current it our TriumphPay run the count product of addition freight through an at invoices with presented in going in the difference would billion correct, least clients order $XX.X in To these be volume however, the In valuable; additional $XX to paperwork is the broker as touches currently, clients, allowing is

to purchase on a other specializes present particular the the serves allowing also HubTran For invoice them determine function, and to for whether process the not same the mechanism our audit or TriumphPay, purchase. clients, factor provides invoice to and by in presentment, hand the of HubTran, factor invoice and and now freight audit Combined these have. presentment behalf prior the missing invoices payment of technology that audit to two create of of was functionality on transportation we but broker, the the platforms the seamless invoices. payment a

that be We QX on of XXXX. what payment only of technology will complete continue platforms expect TriumphPay in date, to reporting these practice actually Until our touches. the merger volumes we

both Slide call as report you out or the factors and additions of who near-term and utilize brokers brokers both products. will also on factors We products on in see XX

finalize third We expect technology the the pricing for quarter. to in combined

an endeavor. and come little As the with this fully trend audit urge line point, emerge of results solution an meaningful meaning payments to cycle unlikely I Investor to the in. QX XXXX, product human said, these full complex for interaction I to at from to patience offer is revenue want until of as in in product the XXXX XXXX. conforming integrated presentment payment. a Creating growth we a network no through transaction an with exceedingly in is ability deliver to integrated business a that expect Even profitability to

technology the market of it integrations sophisticated build, Beyond participants. with require thousands

operating to these customers bottom requires words, procedures value in the In Following their to line data before take their see in we are of offering need security the the see ultimate participants ours. TriumphPay's efficiency, to and network can it mitigation offers. advantage integrations, meaningfully success other modify we fraud

remain $XXX we growing excited we I'd to as the future day, ever of XX. is and The freight we available $XXX market not this $XXX call for-hire about the market. by the to shipping. the define; front We TriumphPay, contract sources this on billion Day of break of committed for annualized and out participants. believe At the TriumphPay as volume volume we that it. a has freight and is the by data, addressable of and and brokered attention market in field the Slide revenue XX is of further and quarter-over-quarter. addressable can billion happening Slide best brokered however a your to of internal as because To to market runway and of down volume, in to part, size information speak. $XX.X with lot move XX own in All find based that in in be end, like ball simple our payment of billion billion

the this an segment EBITDA earnings given fee for income said, in the as to balance due we direction TriumphPay out strategy I'd we're the As breaks forward. your providing open-loop, to going reporting but the appropriate release. toward in format. while TriumphPay. also to presenting TriumphPay last to believe we attention metrics elements new change in success call With stated table have we will This metrics that monitor our toward and versus useful shift and quarter, growth We for what sheet investors in our like these the data past, table is the

like would turn to Ritterbusch, I our Lending Chief call to Now, the Todd Officer. over

Aaron. Thanks,

the of brief fee First, million in relief Over originated and in deferrals PPP update $XX XX% to loans. are related loans I'd $X.X PPP our efforts. of forgiven X.X% down quarter. provide like second been total during loan million a pandemic have on recognition to our and Loans XXXX pandemic resulted or forgiveness

another all outstanding We are originated $XX have and realized loans that represent this PPP $X.X will as in that PPP be million million earlier in fees were loans another forgiven. year they

Moving to lending our core activity.

in business Our highest our the which originations new our was equipment steadier second with growth represents ever. of second source loan $XX quarter quarter, finance million in

pipeline and and of for our latter has the As we've capacity, ABL the team leadership grown XXXX ABL and first of growth half additional our rebuilt potential represents XXXX. half sales

existing quarter declined balances to and growing in overall levels as and business $XXX May second mortgage partially relationships. balances continue Our we remain through million warehouse April rebounded mortgage and warehouse $XXX June at the million loan with deepen then during elevated deposits

community Our community income loan services acquired we deposit deposits however, and due CRE as refinancing continue to expanded and bank more only of balances bank continue primarily to increase fee the shrink treasury loans, to clients. and credit

interest originations lending continued rate and real X.X%. with new remain estate expect the by For X.X% this a commercial second we at led non-PPP rates on finance weighted-average quarter, compressed until at were general equipment Margins ABL portfolio X.X%, C&I normalize. in run-off on long-term and

solid. credit Finally, remain quality our core lending

Our over NPA call points and XX XX to these XX back I'll our earnings misdirected past respectively. the ratio reported points the over-formula X.XX%. Aaron. release ratios in due ratio turn reported advances both basis discussed was USPS basis The and contributed our payments was basis points to and now

million deposit $XXX base. up that over Couple discipline. see transportation fintech margin and to payments, our a will represent we how of about bearing equity all effort. X.X%, focus a upside announced I the Thank for of incubating we appreciate deposits. the is and return considerable That a gratifying about call growth with to very and grew going. high-quality of in tangible XX% of that the of value with now deposits investors just plan this the questions. hope you, X% With approximately our total on we on are XX%, Non-interest on since is under XXX% net return With common of a fruits Todd. and It assets turn all almost while that, are things pleased interest talk

Wells comes Fargo first go Please Instructions] with [Operator today Jared from Shaw ahead. Securities. question Our

Hey, everybody. good morning,

Good morning.

is be Bryce, but public. on I that likely quarter, where quarter best sticking $X.X million it retirements. this the is from full out has HubTran, over a guess with the It's the to of the professional with gone congratulations. next impact are you're is to going a HubTran that $X end years this going quarter, talking – working be quarter, you since the sticking $X you Wish in or million up great not with Is starting now? – just fees – the that just is Triumph $XX delta, up? million you million difference to been Maybe called going that million where of there $X.X the expenses, about

you're call pointing if partial – I period that were when we out, the part, were was HubTran. bullet – No, the on right, first a mean, you this when we only for

making million believe in I HubTran to run quarter $XXX,XXX add So, of will the full that TriumphPay other another just rate, $X.X a would in TBC. be other investments we're and

$XX I you average that flow $X.XX EPS called up of biggest Is And full a guess basis. year think? the Okay. that looking, size, size share EPS $X.XX we see really to delta this because of in didn't that or and quarter thing is just average to through out per $XXX equates on invoice that equivalent is of revenue share then and change invoice per I

the has that, – invoice. remember, lot a lot parts moving to $X,XXX volumes a and it in of do what work invoices well, lot much as do there you've share, a per basis it the got way with on a on as are we earnings do Jared, just because we on that's $X,XXX client a to Well but to has

So and of to those comes revenue lot difference a between earnings it when those – deltas. there's not

Okay.

the and expenses would expenses, we we when guess increases rate this look the to through quarter of catch additional then were business more run think way reflect of up just the now last versus is about and out flow one-time at is guess higher that? should total quarter where the that's though a invoice I that of comp expenses $XX.X So, I incentive expectation million some called

have plan, running far so of of people is to to this Business ultimately when trying the think increase top been our this on from internal impact XX% where meaningful we with were correct, approaching increase I and invoices metrics. all outperformance to are is exceptional move already to catching Triumph commissions meaningful was other going you certain the there sits to some But our that understand of help be today. are bonus in has allocation. correlated that Part tied sales think will there that an And up revenue and that things to so those of just directionally invoice would to because just back accrual market Jared. on be the is We course, there. Largely, I revenue. is of don't see bonus QX want metrics in quarter there to Capital how increase investors needed above that, performance sizes moving a way Were work, of a we're the able parts is here $XXX understand be what

it. Got

you level continues the Okay. on off spot you've Thanks. an by the of come from strong, just the the back an actually and finally saturated increase started to terms of being actually – and a people sort way, more. freight that people higher, the you're update a getting in sidelines is drivers but to on really spot cycle in where of truck either the their coming guess. number road? I the Can me, I and other yet mean market have in then build talked of at seeing past, In we seeing drive that the going it cycles give or freight be about rate there out market truck

XXXX There of saw continues an seeing supply availability Brenner. issue. are be XXXX. Geoff This we over Jared. in chain to Yes, tractors and added capacity We're in is the capacity

with week, new did last a smart to downturn, ours example, used right ordered on a – For almost same them in miles is just of large get the we now for a the during tractors XXX,XXX prices he lot for to but the sell those he because they is new very one. with able and things tractors what who is talking client advance pays of were almost able for market

So, new I've and up to tractors entered suggested lift, you you're same of the terms move equates the volumes the is assets need of and to X% XX%. capacity about that the seeing in XX,XXX availability that's report if seen are – number market, lack best

it. capacity is there to the So, volumes continue outstrip in, coming but

strong were leaving else. and on many And another conditions you with as client growth company thing they that just Business as market that's as do the and authority But working when that, getting Capital; Triumph are someone were now, larger have truckers factoring they liquidity they happening back services. gotten for as the is driving. office own see they're those company They of provide at to released their a need they a generally and already

new creates handle that would carrier there that for equipment a like the of forces authorities, factoring do then availability and plus of down availability be cycles, capacity would with new equipment, not is you'd in market companies, cycle of – and drivers come is think a you're – system too have demand trucking much would driving bunch which banks you're just cycles and it bit don't and right? They of perfect well, the equipment, the here that elevated of because lack a So, helping. struggle of into of switch a lack past – a storm – and but us more all a entire lot I probably adding industry,

new just Business but that I They you client majority Capital vast is growth for now capturing, trucks for clients driving were this, new numbers for of Triumph themselves. – on driving would So, perfect suggest don't someone the just already have those are I we else. understand that

guys. Great. Good color. lot Thanks a

ahead. next Raymond go question with comes Rose from James. Please The Michael

is interesting, and here. as Thanks. Slide or work taking really come the been I and will Do it and number think the things you good little pandemic that's you thanks bit especially morning larger least that market. it home thought questions. sustainable do was of temporary and my XX Hey, thought like that the relates It's to freight according or a I think had a to and for a actually than at TAM for was down team from because number? or growing just our brokers

especially. think numbers for appropriate is freight $XXX it called when We we're as get smaller is number we believe three around which a here that quarter-over-quarter would the into comes you out XX% – XX% years, dig last volume. here I an transactions something would we four that's I getting to underlying market invoice and data, – at from it's still seeing, the look is when and also the getting growth for contracting What you a growing. to mean, market better deeper to data but report are in what market TriumphPay, adoption. TriumphPay Michael we be billion in to mean, outstanding sizes weaker, in almost the amount of it TriumphPay or growing. we because as point brokered is integration measure what pricing payment We've we because

drop in say freight back $XXX or billion billion. So, and could – $XXX a broker it market down to you might freight, might

thesis that changing. hiring able that share superior taking are brokered overall market the freight and they're and is market, nimble, because brokers way just see Our we more technology trend don't be drivers to of the

Can larger how market, ton in competitive the Slide talk talk would shipping appreciate this what to the where brokered and I the you dynamics given Thanks. about about then a XX XX at I freight can you about but and potential. role shipping market, has are so talked flip brokered Slide focused the obviously you're network that relative TAM that a bigger TriumphPay much on Okay, just point? in to – market contract freight the the play market which the and haven't the market obviously helpful. outside contracts know that's open-loop the the – And on is you color

Sure.

Johnson this for and X space more that processing So say, the their couple shipping of even Tier we X names first and Controls. including a on coming We of pay Tier large very in would Medtronic already truckers and we market coming in names behalf in I quarter. are all, have payments some names

at think about brokered think is and paid way at at think over just in of paid I or I half in way all XX% it XX it And the the haul in freight. now months, has to those we about contract suspect, the least truckers TriumphPay all don't some pace of haul they and truckers we're the going. next active have freight, point I brokered will truckers

belief get a seamless, are shippers choose when factoring So, truckers going eventually freedom in brokered payments because experience how functionality gives they to a we haul operate operates things we us need that to to process more, companies good the to TriumphPay the provide can What brokered process. market paid, our for, – labor financing other the as similar value faster, growing. we but and digital, believe create the move have on company the how of the in ask get dollars this and you our provide fact solution trucking They other is we and functionality network or in a shipper you their we be you eventually things and financing to so think it already tools market. pay market, and proposition that anyone application shippers so serve ability, actual the happen our frictionless, about doing But hey, whichever of need seeing think, freight, gives to large value there going of bit our opinion payment the is it think that's market I they And as use, higher got you do the also the to freight cash it then both trucking in shipper you're TriumphPay talked we for that it for for company proportion manner companies. payment in savings, – and it to are solution be can that be by them contract than are in paid haven't contract companies we and if trucking want a audit very market – that them. paid, that and we don't into technology. factor, mean, and we'll the customers. market couple we then much, anyone's brokers, the at to serve if certain to user that to provide the going trucking a more billion the eventually you've But is a a serve trucking brokers companies we're profile to streamline

for the the So, to the market the with we parts It we addressable $XXX of interact there network all intent as of but we our billion. network, it. as same payments view value move will to total because much market way think as on all is volume who the doesn't everyone is mean touches that can

point. reasonable gave $XX.X Do year-end least mean, clients with mix be? through the in you've could for billion, guidance at That's big hot you for from that very trend the payments helpful. you previously can and do just Maybe have – see what us target Thanks. number there a at is obviously at this volume know volume at a what I just one more me. any you any have The payments I sense least annualized year-end. by you up? signed some

If you coming existing in and Tier announced billion coming June, there annualize X integrations the running and the month volume quarter. already more of we're we've is more are integrations that there third X Tier $XX from

opportunity that lot there's a there lot and it's but until point So, that a payments, I our will I a know see hazard lessen count touch payments whole broker because that part wouldn't TriumphPay benefit, it a in in I honestly, another tried don't thing out freight billion depend upon $XX billion can to to of paid. becomes to not significantly. what – think HubTran up those of full that making the go make and freight I we of we that up guess spot mislead that to with payments market don't queue is integrations this and would actually $XX.X does very has go the the and it invoice we you'll is brokers prices, upside, will want TriumphPay And the one what and are and clear and but Michael, customer. people

think integrations freight that least broker both is build between to a about us about now HubTran, be give first to XXXX, warm a when you lead So, and you the what matters because factoring those the it full That's integrations side side. at metric ought TriumphPay quarter relationship, and the the the on into thinking brings. of

as will to the of quarter relationship. upon situated first of prior our you also result relationship come that to existing integrations based point that HubTran once mix, point XX they're TriumphPay we be doing well come and fully doesn't already network just what specific knowing know integrations that to a payment HubTran but freight just and have who broker So I HubTran I the API XXX but integration, product can't include being solely the to can in a that volume, is of into have factoring getting XXXX, that business conforming that part volume with the and integration, as will you of result

once get experiencing? the first integrations I'll try I'm could to quarter follow-up on in that ballpark is just that. HubTran to what a like With those of volume that of trying what is look payment currently the XXXX, coming everything…

$XX was the its an of payments. has doing operating companies own. made procedures and customers. does payment have payments processes volume. not to into HubTran was their That's payment integrated of volume. It touches. It solution no HubTran audit functionality what It that it on audit transactions provides never of billion

to all can't every anyone I exists that So, to currently is move HubTran on that going customer promise TriumphPay. volume that

business, what the of that to done that added minimal audit did allows to we presentment, us is in will out very think volume XXXX HubTran a proposition date. to with there to of delivering a the and provide conforming first majority I functionality fully quarter can but interaction. network – TriumphPay that it to finish What win has market the the has was bring with zero that makes payment we're audit human value likely that transaction a going of build be payment it

it. really the color appreciate all Understood. Thanks for and

You got it.

with Milsaps Brad ahead. Sandler. from The Piper go next Please question comes

morning. Hey, good

Good morning.

guys kind curious it, from Bryce, Aaron I XX, of talking that congrats could retirement. anywhere the maybe kind any know to your or heard of fee interchange testings, network points, where settle? on to from the XX initially about customers potentially you've fee, you. high talk in curious, you rather you've basis talked payments as of come you about kind kind discussed, started to of just market. definitely We'll maybe have as as it's closer just as miss you what have

Yes.

to what it I on they We is it we even would is to as of that, done savings fraud network of falls defining whatever and a and to fee gone demonstrate just be of cost an likely from. be is, be them to of this they can what for say there'll will value And provided people subscription understood need, fully there more telling roughly – we community that, will have your net It where comes count a transactions. value sat thing use then think mean, we that's fee, – factoring fee the applies be and lot we've as a narrative our general conforming be, out And, will eventually one tied would and fee a unlikely that talked want, that line doesn't the number to Brad. to and the as the ask work so their the interchange we're people market be the network I half who bottom mitigation. half the

in mean, the but believe basis, and future. you're be market we the investments we future, subscription to think we changes. and those, for line, include see won't network fees the range their by gave the created you, that the have the will be within fee this it words, how and doing both a I fees will way get we it is it bottom demonstrate one okay, it operating we this know appropriate and network, share tangibly saved when I day it So, and I that price to the upside In year and there our start on when have that have they we market of the procedural likely in total adopt Brad you show believe also like people still other And that's lagging to much a to to the to make what fee. you

that's You money sheet the can't that's balance were why in what revenue And will that we keep of space, targeting. revenue hope faster – and urging upfront to we're grow ask come. them fee and than point to going pay the will savings made the I revenue patience, growing is

I And eventually into it you strike that a that fees. zone will get Like interchange so fee. subscription I a think more fee we'll think I that network don't said, of know referenced. call I it's and transaction we

companies dozens have, freight my meeting we with this to and are we so factoring quarter intent will demonstrate product, and what And of the it demonstrate is, does. brokers dozens

do my on what quarter exactly give so intend with you the is call. expectation be And we clarity third able to we will pricing on to earnings

type mean, want get XX% year-over-year, to be $XX from this Great, I of near-term. comp know opportunity? lot I this point, I that you slow HubTran want but do in in to revenue you of to obviously mean, a get or think money technology pace I make expenses a does more very mean, but you to do know there spend kind to kind the what continue this huge you I you're to got million quarter, begin be? And about down helpful. you as expenses related to of where for you've where you up well, of think to there are investments of talked month

have Melissa Ed leadership, team in leadership, vision at exceptional. it's senior people right, the is underneath and cast, place, we've that Schreyer them. we Jordan the TriumphPay the of Forman, added great majority he The Graft’s

them what good also quarter us them you well-deserved, connects for was that And this stock starting our it's saw that future. because to they in compensation so to the and realize

technology rate who And the of started. just HubTran picks staff up a lot and of staff so those the run – that

we're who just to need several with bulk, the these cannot where I I see have a like this have to we the the are We senior sure you we people incentivized We Brad, – see don't no I quarters. will jump foresee stay But we – way, us to hire still needed people to and end. that two make along quarter had think another between doubt.

we I we out. talent, to think technical right I whole of we this team customer, a because that rate this lot $XX a large that to encapsulates both run a integration. mean, technical now have every talent, talent in do integrations available million new pretty keep financial that is have have in is resources going organization, onboard time warehoused otherwise, real-time to

to quarters. the on any And here two expect would going not between this you jumps so that forward be as significant saw as I last all incremental, lives now, –

Got any jump volumes this it. more Can drove of XXX Very you question in a factoring of kind quarter that up Is was basis that final to issue, then yield, helpful. just me. just or because stronger even for And about add seasonal what the increase? just color points? curious kind mix

Geoff It's Brenner.

the – couple metrics on important one important jump. of think I

is purchases amounts you that by and at XX%. X%, our If QX, average by it you tailwind but compare increased about increased this talked which we about, QX invoice look to

of increase and lot more So adding more capture people And in that we're not the client count to volume. tailwind. purchases you're the and outstrips seeing in a growth that proportionally

look back the has team boggling growth incredibly the managed just and that to from mind If on QX you QX, efficiently. it's

than a ever purchases, you're than think it's chasing than matrix that. trailing higher revenues, that's and seeing client So counts. higher I staffing higher cost ever ever And

returns. better producing that's So

And was to that is he question the quarter-over-quarter. asking specific yield the difference

basis. Brad TFS down. receivables some of TFS has a on were low that with Those with drag the were they price think to also winding to transaction I do begin and GAAP a

see historical we're rate us. for so, run to away, go more that returning you And as normalized

makes all color. the sense. Thanks. for Thanks That it. Got

We got it.

next comes ahead. with Tenner The from Please question go Gary Davidson. D.A.

Thanks, good everybody. morning,

morning. Good

that Wanted taking Triumph and that of customers. a there from ask products to development terms integration plans from the tremendous. that growing was run Capital, Can to in with to Business TriumphPay, for with some understanding additional you TriumphPay at HubTran is bank or just be network? even the of little of its to past kind side maybe Capital has offering bit step factoring a my business pivot performance there commentary, going kind concurrently of But as been the second you least Business and about obviously, Triumph with back a about the payments talk of the of for

working and leaders is the been our a Yes. Good of teams really on morning. and number I This on this. hard respective Todd have Ritterbusch. Geoff

near-term, hard specifically we people And another of value to call client. one – our working are so, proposition two the main this. that the understand our together, there get so very that we to a present In together I work elements to we're can TBC and salespeople,

include plans, work manage bank relationships. that We’ve portal is longer working activity create good sales all is broader And the The referral into of we're and really well. had we’ve the MyTriumph seeing so, the going to to relationships conferences, and incentive development developed term of in have from as aligned well. TBC improvement this

banner system a that like the factoring more nice being the looking use dashboard, see activity all to of with the factoring you very platform portal products of related see and clients related other holistic and online banking imagine MyTriumph online clients services to today. products the portal the a factoring key offers. our where you factoring the information cross-sell the It's to that for but advertising those specific services is look expanded client, that So, or at client also uses to the

least year or the technology so be And that will will take a probably that fully at for available part of a development not and so. process, longer bit

Great. Thank you.

go with KBW. comes The Gailey next Please ahead. question from Brady

and out to in been growth TPay guys. my Most like the one last to are I morning, it seems business create but build great answered, Hey, opinion, like has something there being just to Good just mean, have thanks. special. what right and you seems Aaron, risks clearly acquisitions. the related path gone the are I the that did biggest questions guys It of have in of the big TPay? and ultimately everything successful one. with your on

there handling, I TPay an is course, is the you build that's that handle that mean, there, Well, risk omnipresent volume cyber have just to mean, to whenever risk of we that, around. I

right they demonstrate a fraud to be The that early. experiencing, to strategic would the it Brady, that way mitigation security. to try are do is from perspective, the think client Beyond that, are we we savings each risk the monetize this data too I they experiencing, the

and this their first need need they network, business in to the years how data. think And about we misusing time the everyone's they affects to people it, to protecting they from come. processes see need to that ever it unmasked so in For show prevent for data, you can people plan that

long-term conforming. to hey, we you as telling of of keep in investors, us, that to is if long significant and transactions so invest you all need play This market become as a so, understand. committed of a that adoption, want first getting stay And on a portion level depends,

get up they takes brokers so heads their to us have data, in the network so trust do And trust that that community, time to we factoring we are. factoring for to the anything jeopardizes that we're which the own trust protecting with people have our and company. that that from compete they freight The have

I truckers pull on real-time, sure should a times been make and amount there factoring significant a that sitting and goes get before sure that for together me, you overwhelming where million of if had gotten solve of more to we – who jeopardizes gets simple that to undertaking, come team tell you end that we phone, which need paid new broker where allow in to get Tier network. start paid to of those for were know better of day can onboard right significant day. sounds them to up clients end you then now goodwill do had sell has the but of have that's every misdirected we us that have It's We're at and in the companies that paid a getting for got and the than XX,XXX experience anything value the it. the and go to what making you've with when to would the to truckers people we they you there To into amount and other that our precision have the will $XX address at people hundreds new managing of moreover, people so, it payments you be for try And vast have and doesn't that, with right we go thousands have we X we've confidence now overhead to that to that problem. here, And really now. of loss if payments, therefore, discipline. we service But add not a more every were pay and able of we projecting

network Brady to make happens. resources not have be everyone that to would the And working. so do, has to risk think this I have to it. I inspire that And doing confidence am most whatever never to have the in committed who sure to existential whatever we touches I And

it good this I don't next you you're take think be you answer All years that's do to color. Aaron. to be? right, But question, want get to it able TPay where going how think will to many

phases, right. multiple in that about think I mean, I Well,

I of talking or we’re already X,XXX clients many – the Tier those don't it significant it with. off you amount have I is engaged establishing that spoken as freight we all already think. mean, is trucking paid to X with. TPay preferred industry brings. for there haven't the brokers touched, shipper of We're So, the we part first that is think of to and that is far the have because the get integrations value of entire to may not way as top

three five So had network we the think this where in will ubiquitous the need payments to all space. years, at-bats we become for have to I

my to SaaS investors, going take experience it question investors, adequately give fintech adding they're in And people two that how the The engage can that at a by monetize – for and processes three to grab, you get whomever guess that this product, that the land type bank for that second interesting the paid you product change to because to you is the look in and then will to operating more have the is the long does margins if us is seeing lag volume, to to can companies. used lag investors way years to their it's time with product. going and

So to to to it billion to I involved trucking it's for until it adopts invest long-term do takes we'll different for mean, start make then it, we giant as going this I'm payments plus on deliver we're drag it. and and companies. sees sure And this price us $XXX a point to in this made a to a that whatever willing being to is value be game. XXX,XXX addressable everyone earnings for such everyone in market,

to will volume how into we market. five to words without ultimately of line timeline have know, I done on the a I've in this answer tool. years this of in much this of would come no before give tell to a I you number So, use market that, a the gave the next before, sight you done trucking. how But perhaps three for going years specific of the lot what don't not one It's be be specific much because the has would

Bryce, Hey good Aaron. luck Thanks, to Brad, with it. look in and got retirement Okay, working forward you.

you. Thank

go Matt Olney Stephens. next The comes ahead. Instructions] from [Operator with question Please

questions from Tom quick couple Olney good for Matt is a everyone. me. This of Wendler morning, Hey, on for

$X going payment year? about a books. month for $X to good – remainder million the thinking of one HubTran about million about Is that quarter were for So on fees is the be being way last the of

Yes.

of And purchase refi expectations you. new and then then give you you give thank can can balances? mix warehouse me have any warehouse? mortgage between And right, the near-term your All idea you your for me in

Yes.

a mix holding So, still But for activity activity refi the and we've We seen lot pretty purchase shifting balance that declining while, there I'd more activity well. of significantly. slowdown was in is as new recently, a up. purchase say saw the new

it as clearly purchase it's purchase. is than decelerating a little So, shifting but I faster new don't for towards in And today, know still more of been the refi mix while new now. it's

early And Can guys me have that one just give thank were for competitors formerly you. you one about right, feedback you from TriumphPay? any then All final factors adopting me.

Yes. respectful people to is on There none after a factoring added competitors more. of we the guess, would and what answer. five know of existing lot you is to point no companies technology are who the these We were left HubTran them. I uniform I acquisition

market that idea own just gotten will use I have we work best thought not vacate added good, think in companies everyone – to them this would the factoring So, do we've they we've companies, because returns interest the data for and help still is out forward, I our this we of front would in mean, but any. to going convince early are factoring their lost win that that.

sounds Thank All good. you. That right.

Aaron over I This to concludes turn would Graft any session. back for to our conference like question-and-answer remarks. closing the

quarter. next being Thank we look all in Thank And Bryce with And you to us talking today. you. you wish all do retirement. for to well we again, his all forward

you Thank concluded. today’s now has conference for presentation. attending The

now may You disconnect.