Triumph Financial (TFIN) 21 Jul 232023 Q2 Earnings call transcript

Good morning. It’s 9:30 here and a beautiful day in Texas.

We are looking forward to discussing our Second Quarter Earnings with you. I’d like to open today by thanking you for attending the call and sharing your feedback with us to help us continue shaping and developing this communications process. We appreciate it and keep the suggestions coming. Melissa she with great has talk in notice table at things will about and today a TriumphPay. you is us back the to Also, lot of business. to get let’s that, With

to In present our second results, quarter a freight environment. the challenging continued

the be today. letter However, about when results and headline. evening, our at beyond quarterly our form excited we there quarterly moves lot published analysis basis shareholder TFIN call a Last is of to our the letter. will That

like would are to you before and we I However, forward-looking and statements started, conversation this Those uncertainties actual include differ. subject remind may results cause get that risks to anticipated that statements. could to

undertakes company forward-looking obligation any revise statement. The to no publicly

evening. refer For are to Safe statement. to today the Harbor details, that published subject our please last comments All statement made Harbor in Safe shareholder letter

to a for Q&A. With the that, welcome Aaron? off I’d kick and like to call our over Aaron turn to

Thank was follows. to letter questions us. you call over they I investors Good have joining before this the comments as are I few helpful. and hope for turning morning. afternoon for yesterday published a

How you quarter view your depends horizon. on this entirely

who the be bring to freight until If is and almost to every not welcome problem is of a down true relative horizon earnings up. changes bank factors true our will that prior all the our are This faced are your it continue costs earnings There the fact to going funding direction. our and is periods. of headwind combined is investment news. Fed freight to and Those that short, then are us market same exposed recession the compounded by

a things quarter celebrate. become the other that results I to are then this payments of the there horizon, hand, will long-term Now from trucking. TriumphPay for network if question believe our you the whether answer have on definitely

two months turns, in grow takes to or segment from poised difficult very we will it the also When market can believe we years, that whether our be market. I profitably Payments profit demonstrates it a despite that. two

the turn over With call questions. for that will introduction, we

first please Instructions] from comes Wendler Tom ahead. Stephens. Tom, [Operator Our question from go

morning, Good everyone.

Good morning.

start TPay. closed-loop morning -- color within a more – to with of This financing around growth wanted or giving is little TPay’s being supply shorter the out it more chain story? longer a I part a opportunity business, term term of of good with

and attempted the I Yeah. letter. address question in Great that to

is So of a ways for certainly opportunity couple In to us generate at the for it the look different network. it. to revenue short-term, an payments

few already so ever opportunities Beyond payment payment see are you whether handle will the it sheet extremely balance of form a an being is liquidity of the and fee one finance. financing efficient that, that the to you irrespective of provide where are it’s handling, we we paid

us supply I some fee growth will will forward, inside time chain we think we As be alongside the materially and contribute go for the income with network. finance payments to generate revenue

syndicated be As finance and opportunity the balance to you on supply our for sheet, chain the think capital scales the will see other providers exist our out balance own payments to I network. both beyond network do sheet

for us think it I for long-term. us the with it’s So exist will short-term a with piece of the and

just right finance now that the Aaron, are that. had state for is the add recessionary, call think, opportunities, being would We provided our answering we chain I I just QuickPay our And with customers. the to supply with and market before in

period. get to be us meet So this help to recessionary need through will they where there them them

drive increased how chain of speak the profile thinking deposits that now of likely to you. supply the these And more at That’s funding for you and color. you step-up a saw me, Thank balances last then TPay? quarter. Can the one we in about deposits company term are great broker the financing will just

The question about brokered funding.

dig use corresponded our Loan that decrease Federal with just you pretty Bank in Home a that bit, If considerably that, little of see a will advances. you under

Silicon We issues the abundance the out took and out the in several caution. the failure hundred of million of overall Valley in Home in Banking advances sector Loan related of of wake Bank an March

But if very brokered But advantage in we you its sources, comparable interchangeably, deposits. FDIC sometimes cost those of look have at insured funding and insured, own they two the fully advantages. will has them being use the are each CDs

all would there. So, we else equal, gravitate

between generally is, pretty one year. And as about the term, ladder and month about much you asked a a

see a will us So that funding of over does part wholesale kind of because of think of strategy, funding going forward. some be I And base. lot to be our it those form provide form will time, a flexibility rolling funding a you our of

I question think how your impacts TPay. to would add about it I

So TPay already self-funding. is

we be are some to able contribute using financing own So deposits now to supply able for to back our our banks. the to are and leverage chain that of

point. supply this at our our of aplenty and chain own So with to room financing grow deposits

All for right. the appreciate my I Thanks questions. answering color.

Our from next your Joe, Joe you and questions. unmute Raymond comes question ask James. from Yanchunis may

morning. Good

Joe. morning, Good

big you think you add incremental from quarter payments I from these network? coming some volume do TPay anyway out your the are and mid-tier brokers? on called payment and customers audit that will customer volume wins you market, live expect in in much a currently some announced the several how Assuming then So [ph] that shareholder stack letter

Yeah. disclosed all, million. was quarter, rate There’s Joe. end two The last run standpoint, the from -- of a that I at $XX the we things, think, of revenue first

sit is here revenue we today, under $XX just million. As

So a basis. up dramatic step pretty annualized on an

initiative include those the to Some that wins. the from comes not of does that that’s financing of all revenue tied chain supply

that year quarter it’s We going on quarters. billion over should end live, come spill next the roughly of few And contracted in year. in and hope the what’s some next payment may $X by into that of for would first of volume the

volume. So a of significant amount

audit And much how volume.

on What or have I network would so of to contributing our as a well. be full would are I network broker. point that internal as in would of regardless broker, say product own that that, the in they the out will audit fully be is network their conforming majority whether they solution, the also audit

it. Got

I mean, is, understand fee expected payment have I understand So, the had mix can be fee? customer the that and there’s number. to in I versus a am audit interchange impact mix quarter, recent the accretive wins -- trying the nice and that to to increases customer Are what

are. They Yes.

And just so we are clear that. on

should and it, full them, have we As this especially to a year, broker, yes, relationship they may to light up someone Melissa monetization think doesn’t a What the day announced when Tier we about have in take live definitely, that especially the on but are. XX, in X I of divisions. one. they switch It and past, because just you reiterate understand a multiple switch want goes said, talked someone I like top the just

will the as also customer. longer So go we may things the part and we is the someone next quarters, per three with two have on because which come revenue things even it network, over them our you more of incremental a quarters, the revenue we four found on seen that come us increases with, what the we announce that can have quarters that, beyond help find

the for in color quarter. pretty me, increase lastly of noticeable Corporate provide more you the had Can composition us the increase the that Understood. to And segment segment? on of then expenses a remind

as whole. executive segment really -- include would that human composition is of that a everything resources, the that our The supports Corporate The Joe. would activities. that technology, team, those sorts Sure, include of finance, enterprise the

our by last driven or our investments The over both growth so and is growing technology, segment that largely to hardware efforts. the you support are year seeing people transportation and in software that in and

one each be and I technology that to that with of teams the whom and Tim would teams. executive And allocated their Brad the include would would segments Todd, want me include lead specific that not thing or Melissa, said they to, along team, their Brad

segments. live those of All inside the

in taking for my queue. hop I will thanks and questions. back Perfect the

comes next question Goetsch from from B. question. your Our now Riley. you Hal, may ask Hal

morning, Good Hey. everybody.

Good morning, Hal.

just mean you the of investment hard and Hey. me of all participants XX are wanted days? feel impacts it’s get is adding a seems Trax. we long-term to pieces that have give and for that, could the you just knowledge, to question those And audit the flat from function to all [ph] in My assembling it I want payment Highway us those routed, your our now, in come last approved a Thanks. on together protection perspective as in in network. your fraud see to [ph] in right announcements is, new

Sure.

legacy our That’s a let’s $XXX players in shipper There So start in have banks who market for some been are market that that long are with billion time. that mark. a strategy.

threefold. strategy Our is

compete go not Partner a space itself. the Number them the than one, who to are and the payment them invest equip to in access find developed to in operating payments giving companies have players technology legacy advanced more of players. the that go capacity them with legacy who by but just bank, network against

And in truckers. there’s of be years one between United last banks to the payments do that. can last a to rails we those to distinction two things. is X,XXX the and truckers There in or other big have able and thing America, in XXX,XXX other the few Fed the access XXX,XXX make no It’s paid bank who’s States quarter paid

market and happens take go is allows you pay it share, what you and audit these and with tech freight functionality data win, to And we Payments that they complement audit aggregate win. our that first providers

should where in it it significant finance come reach a and even and generate also strategy time, the like over the a supply day opportunities exist expands of chain for the part will amount it a amount generates this that that’s float significant network, shippers. of because data, environment So will an of of

markets, on to to we because pushed They to we can balance it. whether the that gets that pay, facilitate sheet their understand days extend our may or want transaction capital out hold that we

them. way go and that’s merchant go different for a network to acquirer market, having altogether a the Visa or very than expand So powerful not for to us out

You a and pay way. freight could company at audit in that look

I because Highway, think to about heard that. you Turning I ask

the TriumphPay, know XXX,XXX than We the carriers XXX,XXX know. more active XXX,XXX-plus take you about any what one last universe I carrier about the paid active we a know on in could have inception universe. we to-date, If or lot possibly said, quarter. paid shipper We carrier just carriers broker registered

tells that carriers haul. certain Highway a has to data have of that license data you you or degrees audit these maybe it we take you have we you has they built see have large times to the certainly like loads data that And equipment a are times of don’t quickly have, Payments the very add we that should when who one that much X XXX hauling can that of how XX grows but view players to presumably amount market we able you profile someone a time every be yet, XXX-degree the and carrier and

they data, risk to start a decisions, that is to fraud carrier hauling to in are of shipper equipment procuring and the which who service to what hard a more in haul. can give could double you likely than apparently to have you that’s They could freight to if With and I ultimately standard business long make lead capacity, engaged it loads ultimately you have lead to decisions, brokering, expectations. willing are below think am

the And as grows, deliver, the and efficient so and more powerful, that’s our just we make can that to feature for join. strategy. a inviting network feature more new these sets participants of more network, the That’s network

What Aaron, is bear take could participants. your all dream just kind would that kind the dream the in of is, power to -- pricing of a of one more, bit [ph] be. and or then inviting incentive guess your those integrating little there – rate you what see you could functionality all new to I if

Yeah.

or XX points the still basis points, the still XX rate Difficulty] Does basis take some is up [Technical – come to that

compare doesn’t is as rate. we million sit that I you let’s first the what today, Yeah. pipeline. to two we that I even hesitate And hear, give the you to would ways specifics, like, all, in currently quarters where run and monetize at mean almost want a were talk about the to I revenue network. $XX we which include here, ago I are but of we

has there growth. been So lot already a of

the monetize we which So in ways network. about talk let’s the

a would for other that fee and payment, one, who us. for a They handle There Number we about far into fee it Melissa some we be use on for that -- that’s could go that to feature rolling charge are brokers transaction. in indexing of behalf that, There how to are detail is things others our a us network. the of to outsource can out audit we right? manage valuable greater

of a of some per customers there’s charged years a of reality. a signed an ago idea basis or those than that format, TriumphPay All of on when because migration invoice fees are to was a a more market basis that up standardized were these and subscription are more

days The of capital broker in above from second brokers chain alternative, way help freight days can pay a our manage load Extending improve working no finance. to receivable or freight upstream we seven them, accounts is them them. by a supply the without created can many shipper for their because

help ability the on you the side AP So the and side. to have AR

TriumphPay can using someone live what a yield and out that who capital markets some our sheet facilitator eventually almost that’s of is that and you on can of balance our become integrations pushing the that live at high what sheet does. will the short will to Some see duration, and decision of balance in data Visa make

but can additional about fee, ways, interchange and that’s fee in it syndication an a is that opportunity. different you fee So talk

see and in itself. an lastly, this the example in value of data this then you of is And Highway

Our that. will data of job we absolutely our and the to customers protect is do

to However, in that’s data to we ask a not will business, we that, valuable their they but for if format us back free. the license will do that do for them

think network am small. in that the in side transaction this could of would side, rate, things too network out, revenue in I It’s left the when generate should roughly answer you it combine at but all do. $X take market form payer the to I add payee that? things this just you sure to Melissa, looking what the So the I and a that’s

Yeah.

of fraud bring to to new responsibility to that find our exciting to about customers. itself, view ways identify be data responsibility, our it’s able believe I it’s when think our We the ways. you the think we given value to to just leverage have and

Highway So example of is an that.

from revenue be figure You based much to can’t able on are how going use point derive our calculation a payment that. basis volume, out to we to

thing audit our with Same volume.

in compression, mentioned increased last As over has under $XX compression our freight quarter, with now are we last management we at quarter, rate $XX volume employee at had though even we billion X%. billion, average transaction

we are by just much that a points that -- So of missing the to have you looking opportunity already shown we bringing start view that the it are revenue we of out per we basis pay, seeing are we at able from network. on are dollar into and

you. Thank Okay.

right. All

D.A. comes Davidson. next question Tenner from Gary from Our

of release Thanks. comments the the made to you of have night of issues some in Good beyond last per pricing morning. Factoring price. some factors ability terms Aaron, kind the in pricing invoice regarding kind scale standard $X

Capital point? So I Business guess doing my is first that at this question is, Triumph

Yeah.

should I think Tim that question. take

Yeah.

and lot So creates some or very the come is environment. there’s a discount market Factoring rate into very us. of a what on that has economic a when happened Historically, opportunities it diversity division flat is volatile you some for

so enhance looking And different are to a environment. those is of challenges today we within mix what product variety within earnings at we run into the as the initiatives

add this we internally, all directionally quarter about perfect no this in is would think measure, there’s carriers, mile carriers need was. and small market $X.XX but small that breakeven. something the have is carriers, and a last going mile most the small this a we but I $X are Gary, to where talking correct, And Most not been

you market talk we freight it. -- the recession, about there’s ways when at look different can So this

break could even. where think carriers we many XX%-ish are below I

like no this. established long Now can through make carriers they it debt, who have markets

since you I rates they up, of near think not July XX% those forces yet. are the but up pressed are back seeing some Xst

may some catalysts out that. change are that there Now there

are if not increase break you And make will we way even. of So would your a a decision you in cases, our funds not many through a market time or do we business cannot work with push customers are to think of or at a them to cost they they the working profitable customers some bear when the do it. will as do we we have company, ask it, that

it, during other certain towards of you if the on not to you have forever like time in But and market are where a with that and back a think customers then earn freight customers, where end their this capital. that recession hopefully last does you them rates of this price then gone cost we we there in point the think coming hand, work can reset are

just So now. trough in right we the are

Perfect.

follow-up is – by that, to have factors if or thought through. So push bottom to the increases that the rate have to when potentially because that at So competitive to though, always try race right? rate, was, if flat I funding discount rates about charge there down a the Is seen I the other factors costs this in have costs we funding what than cycles? this higher, said an have we can when departure behavior or back are way of before factors that this by like we the is before or road have seen the a we seen go element have past

was industry, if would well, the long for they on in way, it a mean, ask small – discounts about Think when a We years race has say in are you I like bottom. to people we a discount who in down. time, have old operator long per ago, this X.X%. driven the been Tim, Factoring invoice owner XX days, the technology

Yeah.

That’s them. for whole back which doing a office were APR, Okay. you the XX%

credit our at X.X%. look whole, discount roughly of That’s a Triumph Now card average a is as swipe. half

XX whole cost have they driven so be. that, costs And has is the and where scale down the technology companies industry, operating to used with happened especially yields what has the for gone top But also the Factoring the down. -- from

a hit catalyst to won’t to just yield Factoring lower. where drive a is plot lower. want it segment, point don’t be it chart, will our it in downward. We if our you long-term, go Inevitably, the yield But trending on it

our largest aggressively States. not United factor the are goal. create We the in That’s not trying

to we at is win customer biggest operate with goal Factoring the the customers way. get whole because and how better, that’s great make help goal. our and great Our the we efficiently are is service size industry That

So, industry They fees the so people years. recession cycle same this, a ability is just not the responded their the only hit time XX where rate Factoring not has happen in that your exact they waiting in greatest -- yet did are holding freight rate at and cycle price to the to for because difficult. are

in still All that was business. a pre-tax worst quarter time It’s ROA said, our pre-provision being a long Factoring its great segment’s in X.X%-plus.

it. the market a have We here. from We what does leader to got have great follow just for

Yeah. questions pricing bottom of getting TriumphPay And of on that because participate platform on the move then a on side said, Factoring -- if the as we make the the I guess kind of save on increasingly long that the you from a -- that my long-term to that rates way perspective point side. other were a to factors should are kind in business costs in business to could they to willing and

you Yeah. Tim, speak that. to should

Yeah. Correct.

One of the…

Use ourselves.

-- Oh! Go ahead, Hal Gary.

can finish. You

No. No.

All right.

that think we from is, efficient very a at submission of get one, there’s quickly I processing there carrier. the time from documentation a advantages couple

us it along. to quickly outside for way efficiently all gives and So fund more to opportunities hours, us gives of fund opportunities normal business it the

using all when functionalities inherently Factoring potentially and a So we use the service, when and client using even are Payments. we our audit -- have with TriumphPay Audit they

integrated our in advantages -- client of the And TPay us so across having base. lot within board there’s for a of

is thinking a you broker mentioned momentum kind start could little think I a investors to and a there’s also on you about ask bit exiting of getting XXXX ads, I If and starting I this EBITDA are as But earlier XXXX lot. a to the that breakeven kind the of about more, think of that path bit. Triumph kind to a one thinking Aaron, building little view Okay. than was --

EBITDA a it’s any that or XXXX that end have So at in but bit XXXX? better maybe even if do XXXX -- of you not what it’s EBITDA little breakeven, kind if in sense means base margins for of looking and premature, you get if earlier, better, the

right and it. here’s question, me. on how Yeah. people we the me to about I left mean, tried I would If think of answer tackle that the But

long ratio XX% look if over time I wasn’t, this you but over am In periods business Factoring long right? of Our a a is time. it period talking, of efficiency business, quarter, certainly

of efficiency because TriumphPay, believe will its business. the ratio integrations exceed Factoring of technology I our

it approve should efficiency it should, shouldn’t if also Factoring doesn’t, TriumphPay fact, companies help doing In we ratios. be other it. their And

So then of how question much for go just of it is becomes available the to us a market get.

of top of the the We five. two have five of XX, top the top

than very even now to a we pipeline the that, have things her this I there to and didn’t and doing now are about, things and when that a Hal’s think question, that team this. we we alluded We I behind there that earlier full are are thinking had lower Melissa imagine scale

out I So Triumph want does what I’d try investors that know land? say. long-term, Here’s to a where figure

Banking can You our look at segment.

and Banking almost nearly which Our attention not and not investor basis on Payments. does that Factoring segment, include because about just outperforms there’s enough, us, include a of spread not our for does amount talked any get other a finite that does bank

historically has business. excess U.S., to the sometimes been nature the pre-provision pre-tax a because X% highest lower, the in sometimes just performing of in Factoring basis of ROA Triumph banks the always ROA X% a higher, provider, on

great -- our it business. than balance as should be Factoring but as scale than more sheet about is things, investors revenue, TriumphPay efficient much generate It driven, more be not because think may which more at fee-driven should it’s from efficient.

company together our than dollars consolidated it high so that Factoring other business network, see that performing high capital a invested if very can worked a line more performing and have of that we and and is we millions from achieves here. Payments a payment And put hundreds business enterprise. build we to that own margins for And Banking is Technology have of any bank, in like a of most a you profitable years

not there We are yet.

over people it’s get course, am in of consolidated add very components faster think most when compelling that’s as biased, my down XX%. there, thought opinion, those enterprise. But a together, We and you market go, I I going are we three than would if we a despite

you. Thank

Jared comes question next Our ahead.. from Wells may Fargo. from Jared, Shaw you go

morning. Thank Hey. Good you.

morning. Good

Can of Maybe great. around and we few core and some the through bank of the been at the, looking of of But should where expectation at expect margin quarters? next go – we you the More said, dynamics margin? to margin over looking beta broker some deposits, maybe has walk that yeah. like the see the dynamics growth the through going

Jared. Sure,

which Just have margin at to the is in as I a To in a is it a but regardless greater else happening expansion about reminder, what see that, over will and see point, this dominated then we portion reminder that expect that now, would I know what happening our else economy talked will of be is some as sheet. on a time our is mix. rebound Factoring the before, balance operation and extent by our our margin you than asset

for sheet In would next now, we of interest the net market our roughly expect balance the near-term, freight assuming a two based margins quarters on I three see to what flat quarters. kind and quo status be or

Factoring. well wholesale funding, which, one that is that our that any of expensive. deposit then bank you pretty other community are to know, forces good But as backfilled that, keep are by a done franchise the kind those the attrition at are so bank in because forces of job of deposit at would And as play, franchise mix have the community will of and The just Bay more far. be attrition our in mentioned, we core big I we able is impact how

have at million in month do probably so principal that of loan to fixed we higher a rates. So, or coming opportunity have payments be $XX the reinvested rate

of the creates and next pressure bit couple the a would that would quarters. But of I margin the upward flat deposits way. margin that any expect other of repricing So balance, little go on a then over on pretty our

I just further if And a the to core respect with will elaborate little bank. mind, don’t you

higher of lending we may of may to a them lending because see higher rate we with drift also mix. see environment, So yields little but the because drift yields, respect

rotating even So new are lending the are lower yields fund we very have products we we is wholesale doing lending focus to yielding with higher on attractive sources. products out them of any at are into and yielding origination that doing more expensive if

to As we it pertains deposits. different deposit of have buckets core mix, the

community So bank which those Brad alluded very core to stable. deposits, highly are granular,

very, so continue reprice and only on on low. an been deposits those to very the betas those have We exception basis

with of also more rate than large mortgage particular, are the associated was deposits deposits finance associated We quarter. rates. and commercial reduction warehouse commercial and were the you seen Those businesses are drop for most -- with last deposit our responsible that very have in that over those has saw the the sensitive what in balances deposits significant half in point-to-point

or We keep are those earning we some deposits those deposits. lose of mind, are high those deposits, deposits when But back. in gain those already pretty rate cost high

funds. of to effect the cost on big have overall going a So that really isn’t

you us mortgage to mortgage Conversely it doesn’t cost of deposit you that much. warehouse wholesale that replacing funds. a help gaining deposits bunch affect to the funding going warehouse much that are respect new with are a If source, with our overall of

throw if cost in, you funds of overall thing here, quarter, would X.XX% I the I to for look our at it One add about that other [ph]. meant was

expensive on at basis end that the sit than XX we basis spot less of quarter, the As funding. higher older some roll probably that our as we points rates points over are XX or

bit yields bit So on as but asset little expect there a would drift fund well. rise, be side. cost I that the of a of will little also to I expect would higher to drift a

any Yeah. was Thanks. but then not related that And charge-off on the identified color to TFS?

That legacy carrier. was a mail

did trucking we to the companies we a Service, business were companies clients and not in we the have over-advanced Factoring it through large able business we connected until owned acquisition work to those that remember so detect -- with continued worked and an as quarters position through. Much those those. of we who of several trucking operated it an been was Postal U.S. of with into were has If our you ago, that one dug way

Covenant Logistics of ours. -- We agreed is partner make also the the best Covenant to of situation. We a work is to together a company. great great

them was disclose charge-off agreement fleet buy Postal it’s to and Service significant that services, think, $XX.X to we roughly so that portion ago. from only And every a tied is And pursuant United that the remains thing years it indemnified postal several I States million. that receivable the quarter

We that. that am happen. government it the the would needs services. faster. related it least convinced money I or of the can’t is we We at the And they Triumph’s USPS, collect the exposure end postal owe for that and companies control trucking to I to once like that in go us will the done, to is pace absolutely that at

that’s what to are then be with that and that have came one that. from, with So done dealing hope left we we we

or from And So lawsuit post from is guess, write-down a that it I or previously is for request payment totally that’s associated with that just or a fully that a a is outstanding? still office, or separate lawsuit, it a this charge-off discussed.

Yeah.

is So it whatever office. in the post

It and It letters. in charged is neither spoken reserved, have prior is we identified it about nor off.

Postal litigation in well. the identified think between and us I a of Service. the It as is Q it’s matter United States

Yeah.

million $XX So, Jared, is… that

Okay.

we Aaron collect our -- classified it, reserved … to But see. expect numbers our we mentioned, due against and asset have is numbers as not reflected in you fully that past it. it

though. Okay. no that, on update And there’s on timing expected

The only fast. update litigation is is I never have for you

So, is unfortunately. not no, there

Okay.

for me. Thanks. Okay. All right. it That’s

comes Michael? question KBW. from Michael Our next Perito from

Thanks Hey. my for Good taking morning, questions. everyone.

Hi.

a lot to mean you I couple a had of on had of think just I touch I -- quickly. I to have guys things wanted I wanted it.

could in include higher. year, the you the larger signed provided color to there onboarding kind What there that the don’t does But more when I because something or maybe that come guys here appreciate had just the revenues half? client the clients the higher remainder first closure? there’s around project minus that expense later. side, be close some that additional than that pipeline have or you of So that you on the all hold there’s of of kind if assume of I half a a drift flat guidance ramp-up on is does the mean, year that kind drift number and expenses back assumption around or think, Aaron, -- the of an already. in could of But you into as mentioned

called If that close see million similar of in expenses bump, I quarter, could expenses to think, think, we to to the Those see. we are those successes. type type closed I about clients happy am out additional that the of a client in this this related quarter $X.X expect I we you were

expect would I flat. things that, remain Beyond to

pipeline close And expense is the in the guidance we that believe we everything I gave. in is that to

that would if are from currently that So new wins guidance, we not pipeline. the be expense that in deviate

I and of release guys Got changes it. and would portfolio wondering sounds minute just talking book, are the been maybe ago then credit some performance an just, finance just the recession And a largest expectations But additional the about to how is this as your some how the months that you some for like longer and that for made if exposure or environment we speaking you what spent secondly, of of a quarters months how the it freight deteriorated. over additional how from in last tweaks, love way guess, those maybe time, have equipment loans for vintages can maybe color? there few bit it, lack about credit think putting here, second your you XX maybe as Aaron, better I you XX it’s spend has about underwrite lasting

Sure.

Todd.

Yeah. take question. one. will I that Yeah. for the Thanks

credit, finance not about in but of to think our consistent sort been pretty any has approach to I spike be follow it necessarily as cycle, the asset prices. to So equipment through always

require safe, to within So us to prices to stay to consider did what just was reaction payments, be spike allowed down when we be long-term which natural asset our value. loan

in continue We to in that position.

and so in ways cases, short continues. can and that on cash some us that is us situation in to extend their as has think we payments, about And equipment running going to where recession freight be lower work allows a today, this but them for equity their to carrier value necessary a is that with

that fortunate that provide services carrier the have to Factoring relationships. we The are continue collateral carriers every with we to. that that us that to are But coverage we work to not we and we long-term lend do allows

through have very these have equipment Factoring our Most clients been the so cycle for through Those feel sort of work equipment finance and of us. them with know leadership qualify cycle been own of our with the that how financing we wouldn’t through team, that many to and situations in with comfortable relationship place.

that where again within relationships play, relationships a this have other as obviously, equipment, are scale a they carriers get that into lot. a come that and point we collateral put to can their decided But we carrier, liquidate operations that bit. for that because carrier going helps buyers with to that to those values, -- who if cease just whole the to to we down have operations others the want liquidate us little actually if that -- or If is equipment, we help either

recession. we how through the managing that’s So freight are

And it. earlier, got in to I authorization, guys buybacks maybe February of if and kind apologize valuations, in we like I forward? But you today. communicate not But of You the I how Gary’s much am ramping, on should out I -- valuation for earnings I this XXXX moving imagine about what look yet, a doing buybacks me. new the think after look imagine mean, are? TPay Got Aaron. point, curious you to I are for on the your lastly appetite expectations starts just you Thanks far, ready I relative attractive that. to valuation bank that scope for minutes just your look really if late. more nice starts but right? missed few have small a imagine the ASR

Yeah.

We believe appetite previously. of same we disclosed value what Our are long-term in the we the is creating. as have

that with building at and be compete are will unique to We hard something something scale.

So have We yourself a in and use where we could it’s position you away a just future and give you buffer capital -- put journey. against plan you that that great Number let value. There is always do for one a uncertainty. how a for. we recession can the dilute happen. greatly three steward The things have won’t to

almost we we that. -- look of if minimums, at above capital So, have $XXX million regulatory you were

second to the journey expedite that of companies capital payments TriumphPay acquire thing is network. maintain for the will in invest we The to or becoming

Trax. There interested are had companies headwinds last that saw Those different freight companies are the jumped we active XXXX. in. You if and now XXXX we been the are fighting with quarter and in other and investment gun an in valuations look than very

opportunities to we there to network. the expand continue So evaluate

timing. back have we yes, and shares, our buy we never Lastly, perfect can

back elected window We so any a want about. place XXbX don’t think to buy have quarter that’s a shares We This trade miss can forces shares. do not plan to as we And opportunity. just something that that if the market we in outside drive down. Board our

growing to we our and not are revenue We our grow we are our profitability. sheet, grow definitely to trying balance are trying

the over believe the the long-term, would so lead better. And to that back that shares we more buy you

quarter not. won’t. That doesn’t we This did mean quarter next we

of We continue make to a three collectively our Board as and evaluate I the opportunity told the set things you decisions.

questions. you appreciate my All I taking right. you, Thank guys.

this line questions further time. There are at on no this

line will We you. for now the Thank over further to phone move Q&A.

remarks. back turn for Instructions] Thank questions. to the it presenters Thank At are there no this time, I’d you. closing you, [Operator to Operator. like

morning. you day. great joining We for us you Thank a hope Have to see soon. this