TBK - Earnings call transcript Q4 2017 | Triumph Financial, Inc.

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Operator

Good morning, everyone and welcome to the Triumph Bancorp Q4 2017 and 2017 Annual Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note today’s event is being recorded. At this time, I would like to turn the conference call over to Mr. Luke Wyse, SVP, Investor Relations. ahead. go Please

Luke Wyse

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

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

please statement refer including If Slide to slide our you are online Harbor logged presentation our webcast, Safe on into X. available the

our For have. Fowler by to CEO, Harbor I please this Chief website that we Chief Karas, statement our Chairman the am made Bryce may Officer. happy subject would will note to to be and All I this the our statement. are Financial during you joined www.triumphbancorp.com. Dan At Vice those Officer, and Lending on questions to call morning phone, and joining Harbor After over Triumph’s presentation, turn the Aaron. that time, today’s call Aaron? presentation Safe are like any at Safe Aaron comments address available by Graft,

Aaron Graft

Thank you, Luke.

a lot To the use to I cover of in signpost and to unusual, this three am call. going the the things presentation, categories: unexpected have unique. We the

X. which range October the growth our included Inc., created region the was include nine on markets the usual results strengthened of most front of our the in First items. accounting three on our fourth the Bank Bancorp acquisitions, December of of position items quarter which acquisitions Independent further category, branches, is of which Colorado for X acquisition Colorado. acquisition and These noise in these unusual unusual, QX our which branches Colorado Valley numbers; Northern first, effective X closed impact The of unusual

and two now million of $XXX share of $XXX TBK a In branches, funding loans and addition, which deposits million $X.X in We and million operates intangibles million by in $XX.X goodwill. Colorado. acquisitions acquired per of incurred diluted deposit costs, improved Bank recognized $X.XX. our $X.X base million these earnings our located acquisitions transaction capacity. in total We these XX reduced core XX deposit in core and of with

have expense adjusted in this added We per back share. our earnings calculating

in new share $X legislation, we effective the unusual million once recognized Second, a items, expect which XX% lower of tax tax expected effect greatly QX, by earnings of new generation benefit fact income That expense the charge $X.XX. non-cash a aside, to earnings rate the our from in per of in in reduced tax a XXXX. we future approximately

a line. that fall of expect will bottom this our We to benefit portion material

associated deposit unusual we is plan a third entire charge it The have we This funds the would quarter’s deposit asset assets, is public incurred an which as in reduce our non-cash of to last and item that accelerates future the funds. expense on result the core the with million is discussed deposit timing call. intangible unamortized intangible impairment of the on CDI public of $X.X acquired to adjustment item the the core remaining reflects

is per earnings our adjustment This share Given by it public hold balance of the not to funds. for composition continue practical to reduced sheet, $X.XX. us financially

let’s talk the unexpected. about Now,

to decision have exit finance We made the healthcare business. the

We decision simplify organization. have this made our to

our to transportation lending. capital and traditional businesses our reinvest to the factoring We and we core healthcare into finance going specifically business attention are previously allocated asset-based

for recorded including to net assets allowance decision, of of $XX.X result million a for with loan Finance Healthcare of million transferred of a of this sale. balance $X.X and lease loans As Triumph carrying held amount the losses assets, was

things unique. sell of. are have with And our that mean, final associated healthcare unique finance category, make proud we As executed the the TBK January its we agreement the things competitors. all These the business. are unique, assets XX, materially most to of the to I By

our excluding our and quarter. This year. growth, $XXX asset growth end third included of CRE Triumph portfolio X.X% the $XX First, produced team growth our proud million, included solid of loan warehouse of organic I and and quality, in organic Finance, million the an organic from growth acquired am our impact exceptional increase very Healthcare growth the has was $XX loan loan of of portfolios in million mortgage the platform. this of the

factoring lending, equipment our of in growth organic drove and business. lines asset-based also We lending

Excluding Finance, $XX in excel niche we quality. million yield business put portfolio place team our $XXX without Year-over-year, lending the quarter. to XX%. loans our acquired total or the loan in commercial portfolios. during Healthcare finance million growth growing includes sacrificing our or loan This grew Triumph have Again, continues was commercial XX% or credit finance the at

was be asset-based would our for XX.X% finance loan or many $XXX or in XX%. or $XXX million organic Excluding any metrics. peers and growth healthcare year lending was total portfolio outperform surprised our of our commercial organic I portfolio, million growth the loan our if loan total these

a growth. net for As an over QX, With respect of metrics for basis. quarter growth absolute quality, interest of to adjusted remains our loan loan the million a on prior loss our loan the and improved organic our fourth an provide quarter. margin $X.X solid. primarily We in provision result This quarter’s to happened recorded asset

X quarter’s points experienced Of $X.X charge-offs million This $X year. the reserves. total average the previously and million points basis a basis the were for or this quarter, established charge-offs manageable net loans quarter net had XX of for

point, TBC Triumph or approximately million of to I growth quarter, $XXX contributed in quarter. for quarter. purchased of is or the Our dollar past quarter. and ratios record achieved and purchased the quarter. in Capital, invoices a the an value to again of like next the of subsidiary in that Business dollar million broken XX% increase XXX,XXX prior purchased, $XX invoices factoring a during sound $XXX.X asset million non-performing point of all fourth I served compared the business, fourth once due which our loan the but strength out clients non-performing highs transportation the our factoring number experienced value number invoices improvement of loan record, continuing the The want TBC during

For is $X.X happened clients an the million prior X,XXX fiscal million XX% That incredible net of Average of $X,XXX XXXX $XXX the have for funds its are and To this period the what $XXX or the downward quarter. higher same to trends which seasonal are purchases employed purchased December quarter year. the in normally of were in added TBC quarter, net the average during that the growth clients increase year, invoice XXXX. new purchased affected fourth the versus XX. and is winning TBC to XX% invoices, at the give ways. compared billion quarter segment since which this reach end surprisingly continues $X,XXX strong in XXX January to-date increased color prior on to than has quarter fourth size been by some

today trend it encouraged the are from We by finished fourth also where invoice quarter. the continues fact average to our higher size that

the of thing the to upcoming too initiative industry for to sample we is the mention sticking to XXXX. of with The are last economic for is watch first size the confirmation While small transportation You experiencing half XXXX. strong in draw in conclusions, early and forecast theme Work substantive

retail branch, Dallas. retail investing Dallas branch in are establishment full in our First, service we a the of

you other. are those know it who of familiar like TBK, will with For be no you

relationships Dallas significant We the have in market.

retail is have results opening leverage services branch and vision grow already later franchise anticipated in Our Early over becoming an soft in to to those commercial deposits of the this bring very of X our promising raised in advance entire been to branch core deposits Dallas as relationships We full full-service Dallas. million envisioned largest within service year are summer. opening. $XX our

any since TriumphPay factoring quarter Capital aggressive been clients several of have initiatives, of Technology significant in TriumphPay its Triumph under a brokers we XXXX, platform launch to Ahead third freight gain marketing Business for the clients. potentially the and have and pipeline traction clients. soft product, signed Second, continues with the of

development continue software websites data and client an technology application transportation through focus on and transportation our integrations will mobile providers as management user proprietary as updated as TriumphPay, such to We applications. such third-party things platform and experience such enhanced

the its I transportation I investment are Alliance original is closely a exploring will the have and over industry over related represents to this Blockchain transformative technologies tonnage quarter. position in of this for believe our newly certainly in integration With charter all we application, Transportation is point, trade leading TriumphPay of velocity market Triumph and application is Blockchain. both financial representation that to freight formed BiTA. XXX with member be in honored the members, institution. is expect which here to BiTA’s in support I its aggressively, Triumph transformative nation. enhance transactions. say XX% or and technology fourth on to segment. before. could our association’s would Bryce? said turn to our A the the At transparency We what as domestic on potential call and the color provide the Blockchain additional aggregate this to membership bring factor in for over board supply chain mission intended some performance I Bryce volume the like to key

Bryce Fowler

Thank you, Aaron.

income fourth net diluted the per stockholders $X.XX share. to of earned or For million quarter, common $X.X we

about impact highlighted share feel quarter for intangible to our impact of earnings million asset per of cumulative revaluation mentioned, we As the million when $X.X deposit $X.XX. reduced the $X million cost, thinking earnings the Aaron investors be our go impairment $X.X forward deferred tax of earnings include consider for The core and of profile. transaction the several diluted of should by items

for fourth Total Regarding a transaction two the our deposit intangible call, cost quarter expected an impairment communicated of non-interest million the incorporating was we adjusted expense $XX.X last million. and earnings operating quarter during run-rate expenses the core expense acquisitions. $XX.X for the

very Bank basis during yields was the as the Clearly, not of increased for on increase the quarter. for quarter Most expenses also to in We yields operating is This to and the points first strong increase good we commercial attributable approximately interest XX finance but experienced inclusion as the XX.XX%. of loan Valley had increases loan quarter. driven net we growth only million. by acquired margin and was branches across Aaron outlined, portfolio, primarily board which our expect $XX the this to business of full the XXXX

accretion, the of discount included fourth loan $XXX,XXX quarter. prior quarter to $X.X compared increase of the Additionally, an million

purchase and expect As accrete income to interest of accretable $XX.X have we of million $X to during XXXX. XX, discount December million approximately loan

was Our to December ratio deposit loan XXX% XX. of as

Dallas use about remain of advances portfolio our in in million We $XXX most were in acquired to Total our in ability above will X%. place to mortgage of warehouse up profitable our pay for increases obtain notable turn the X%. about of which million We for took brokered federal growth $XX in deposits. and funding rates remains deposits back to competitive fund to portfolio includes money ratio that, With Aaron. it loan quarter and Our this million, over deposits. home deposit bank market $XXX our loan products loan our given I confident ability yield experienced as

Aaron Graft

turn to for questions. will moderator I the over any it And back

Operator

[Operator question. with your from Instructions] And first comes Brett Please our Piper from Rabatin ahead today Jaffray. question go

Brett Rabatin

Hi, morning. guys. Good

Aaron Graft

Good morning, Brett.

Brett Rabatin

first wanted and to on mean a ask to the benefit the what not most elaborate mentioned on of bottom making? line, you bottom maybe to you the are guys can benefit drop things you of the line, tax investments little drop that further rate might by what what will I you would most

Aaron Graft

Sure.

technology So had specific absolute XXXX have expense. to going technologies whether Business intimated that reform, That of there related would a Triumph included we not I increase for irrespective are to variety both initiatives of are an have basis been in non-interest on tax Capital. the investment we or

of are our also channels. improving delivery We some retail

We expand continuing to space. are

that happened whether not reform. or was of All tax have there would

say tax less of result have of would identified a I $XXX,XXX than As actual we reform spending. specifically,

a So, anyway is do if result view didn’t make tax things changes. our were going we of these to we any as reform

the is just vast the majority flow the of benefit to to expected line. majority, bottom going our So

Brett Rabatin

have this back push you color to talk of little move continue kind year Okay, segment then to good about And for of in that? the can maybe funds? your you funding you it just evolving And but a cost like fairly and the moves on finance as you great talked branch quickly, pretty rates a see commercial path about XX then the looks full there. terms higher to service of year how

Aaron Graft

Sure.

So of goal to finance taking is yes, be than of outstanding loans the to first question, XX% a really that the number. commercial of a ceiling more managing

which other any bank organic to XXXX engage M&A an balance into in faster can most on numbers add likely also commercial than community You it finance loans reasonable we grows we have. in these be our segment see would basis, will from expect sheet. will It

if cap So, I component we were expect working we commercial surprised things end be given on. be we loan against year are the to growing an of would on some of But pushing this at our the organic portfolio. of that XX% our fastest basis,

– one the already doing lending the second of Dallas we reasons service On Dallas. that, question, Dallas the have we are in branch, full significant

the sit of and TBK this One provide some for our many individuals high we net us relationships of or way reasons capture deposits the investors with of is a of who are Directors. to doing worth to Board are these from on commercial

become branch individuals. that we I swings think those funding result know a we of have. generate mix, you do I from the would by we because as but efforts respect at the the would if will transactional funding largest look think of immediately core our almost itself will to the don’t relationships branch of those we say M&A. With rest it just So, mix, again accounts

existing funding. some of priority we the our we will consider is initiatives that grow As framework. through most M&A at continue And our that to exist look deposits we is strategic in retail

Brett Rabatin

I color. appreciate great. Okay, the

Aaron Graft

No problem.

Operator

with Shaw go question next Wells Securities. ahead our from your from Please And Jared comes question. Fargo

Timur Braziler

Timur good our filling actually This Hi, morning. Jared. is Braziler, in

how as we share gain, market on and should of guess how at three to look much growth is XXXX, that factoring true, how that XXXX amount, a growth prospects First about and XXXX, I here quarters you as business? the invoice overall is of really question much is look business, as tremendous dollars you thinking the business at as far purchased that be the of average end

Aaron Graft

the of grew period. ‘XX things And to same has Yes. grow but of ‘XX this forever, is just right. the XX% first suppose couple we pace of purchased run clients Or out. been know from year-over-year the should so remarkable in invoices grew net a sky, the end that XX%. you trees I We to We to the on say it average point thing and continue on don’t couldn’t number

logical XX% correlated your pretty are grow you those by fully if about clients rate. So your numbers deployed, same clients and are invoices to are at grow the

gross XX%. revenues grew the Of course,

the result that of size. of or they to continued strong before revenues continue to invoice to have strengthen economy, said in good be grew pretty Average XXXX, as now. we all course the invoice is the there, delta we reason think factoring feels So the it right indicator, the specifically transportation to disproportionately good strengthen sizes number of are pretty clients year, would to leading tied we a average believe factoring but a going

logging industry not ELD which lot to mandate, reduce by growing speaking imbalance it’s – miles The demand the second generally electronic by the absorb think supply but even of number reason, going the of we of independent driven these trucking though operators. created even owner it’s is by a the effect the mandate, trying implemented, fully the to is

of you we is close very experience. think and economy allows a of very downloaded to technology, bodes space, purely when last on are is And but competitors stay would then that. pictures we been mobile for a I what attractive not to have clear out Business lot large that’s pool flushed clients, invoices the few if thing appears Apple, it And make totally per to that of point going some and market does but XXX now – of have well which by think great specifically, then them many I just to on has our available on leased our fleets. course are we very – stay this, and tight have our for the is labor There be that the independent the cash them got potential to tax of app us. is Capital a we drivers we which think the on better submit the truckers mobile changes benefit their a take has it consumers who of So yet it law We secondly, truckers because Triumph spend mousetrap, that will for just in got of you strong out, services. tight increases that on think a transportation Android happen be

small entire most we percentage, client probably of still think, largest we are So at a we very the have market. the X% base,

control. there our the invoice grow out now, average typical for what pretty think this room the for invoices we see the bodes seasonality So well is January that’s right head clients, more not lead January economy. to on of in it But which year, will sizes looks its and to which happens reared has you as strong to

Timur Braziler

Okay, that’s excellent color.

us maybe what public just public where on of can following-up funds, Next those the one, and the what costs deposits the remind associate you are? funds balance are then the

Bryce Fowler

Bryce. This Yes. is

it round so. public the has basis in an XX% completely So, those million or around The this in of probably pace XX them. year weren’t numbers or out. basis services left quarter to on the would a each points interest building down were I cost $XXX along total costs. with $XXX point ago million the at being probably funds is providing able XX to was we say that average way But the on we cost points, of were that got or of I

decision get pledging economic of along them with So had. that’s we to part the requirements that

Timur Braziler

to kind that the exit near-term public organic in of, phase, is at base? growth funds supplement all or that M&A your of And either optimism for indicative Okay. that those the near-term from

Bryce Fowler

XXX% the associated of kind big with mean those, clients fund on the degree, dollars we grow through where were total the I amounts liquidity overall. XXX% we that around the have, some standpoint securities, want math largest To helping of but public to side, from to if of funding us expected customers those Yes. so deposit in a carry of from most or really

Aaron Graft

is could lens that this to do on we and a everything But look have through being to think the pledging we take at less look business to and when for look clients. operating If to want those we is of which those just at that X%, given requirements funds for-profit want Timur or Yes. company the that, to funds, jump are us our look ROE I in enterprise. naturally transactional banks than where you overall those I trying we unacceptable think an the return costs of help on

services So is are made this deploy we loaned you this balance have up fully line stay allow don’t that to these because on we other but way, practical stay to customers to not get deposits their just business, we the and tend so us they for arrangements that we need. think that still sheet, in of our

Timur Braziler

me have business? last generate expected And kind Okay. anymore around revenue one eventually done any that when on provide you can of for color could work to soft from and you on you that the happen if TriumphPay, stream is potential launch

Aaron Graft

factoring cycle much Well, days. to I have done would we sales of But launch a cycle out turnaround few soft client. sales our the Yes. willing lots there. of the The this client than in we factoring are for for time. TriumphPay none is can traditional traditional a is which longer at We share say work,

done, integrations ones Well, management transportation the do, the X For TriumphPay, if providers to is software. those integrations once interface. especially us, market. the or you integration, have talking And we the out four next two-thirds first you with the for month written And there are three to think you providers. completing the the process of four X we about you the of time get first probably because dominate TMS that cut there, the the leading about are in you with integration already three

an So, right brokers we is now. system have what XX accelerating the active I it’s that would on say freight thing

so through is you there to third-party they imagine up very throughout follow, one once are broker clients what at some us our We of be And folks that advertising live course, thing the are heart, and but we once that thousands potential pipeline is be think of marketers of invoices it, clients. for can because will freight done. have great a signed in we many and those people processed is such large will because excites the industry, it’s we logistics

to So think half start second you the in show a will year numbers net-net, big I this of really TriumphPay. is up the ‘XX, see but for

Timur Braziler

you. Thank Great.

Operator

Brad from comes your Please O’Neill. Milsaps question ahead next Sandler question. from with Our go

Brad Milsaps

good morning Hi, guys.

Aaron Graft

Brad. morning, Good

Brad Milsaps

Hey, Aaron, quarter. great

to there changes to terms more how more of will what aside maybe big in be around finance, change? previous the you goal. does ROA guidance things kind X%, X wanted to where Is than any of of kind sort deck which that kind your of the less goal, was guess net goal just around of just follow-up more for Page and your aiming for you of now your are M&A Just one on I any of higher that ratio you banks you on the realistic some strategy there on it’s curious traditional going overhead breakdown was from is color slide rest that it change, year? about a other your that keep speak are the type of talked X%, specialty investing in

Aaron Graft

Yes.

have our know So, goal from X.X% say, here of a all, a first is number. what if Well, we to I Brad. would you X.X% upped

rate, – thing second yes, the and that’s so The effect etcetera. tax of

to it’s look what think Over platform could of are that’s There are costs think valuable ratio significantly future. building and I that As here. one overhead on something have, we to into far above that. I other community the the that mean as net but banks technology be we also and traditional would number recognition some happen that

as over you look to is grow tell are be that XXXX, grow, that asked at traditional have factoring you for overhead internally a and would than about think ratio our businesses our also a would attention clip, us of wise going traditional being we continue we acquisitions driven depositories. We long-term commercial rapid like question which of in will more the that goal technology doing almost do I on acquisition and finance stuff higher X% banking. are XXX% we may commercial organically. beat I to and The the in the finance what suspect

we shift able have nature So are made is a long-term lot feel The we to assets think yield of our to been that technology the and numbers interest we we goals just yields a we maintain of we more appropriate on we looked working our set assets that very also as at require had high to average generate on. those reflect so some or that and and earning markets of above granular on business. net total well niche result the the we where the and numbers a income fact attention

Brad Milsaps

in on like the kind curious but are of kind what avenues curious is that might has just things kind has not any performance that And changed before, great, opened just look curious sale, you it’s pursued of that things if kind up nine might always up piece how the to of your have quite and would just strong of helpful. That’s kind you acquisition you look months last regard? on I for maybe that guys a M&A that just it, a on the a of at, as of change but same, all more the multiples that’s you multiple your there follow-up deals months, buyer over is know six if look bit of kind history

Aaron Graft

Definitely helps. the definitely. No, multiple

expressed actionable now doing can some And of Texas to so but our multiple the at in have long that we expansion it accretive. of organically, we desire look makes we peers, be deals are those more and right, Texas,

markets, do continue have presence you continue we same Texas. notwithstanding right in inside we we to growth, a locking of where footprint think believe that that these in we those will will which what buy to in done, and more are institutions markets think price, up in think don’t I dominant opportunities where well some growth the we we buying we rural for are those the have of more get markets, can at look always Dallas you funding where is trade. of amount We the we But

accretive. also funding continue it’s we will stable that’s that base so we So And look. is and where to think

Brad Milsaps

Great. Thanks, guys.

Operator

Steve from question. Our B. Please next question comes Riley. go Moss from with your

Steve Moss

morning. Good

Aaron Graft

morning. Good

Steve Moss

just any updated give within terms – of just wondering, business finance of real you us loan commercial if line regard thoughts specific the and to items growth I estate? I with am also could in commercial side the

DanKaras

morning it’s Steve, Good Sure. Dan Karas.

have office. point be comprised expansion So in million. West, and the banks estate, but $XX large quality that its or growth multifamily to of our higher continues most real credit just out that sponsors in quarter us for in fourth the in about That some commercial Dallas community to the in strong market, Midwest part, of is even

of In in is team, best that’s capital. strong business continuing continue the grow And some experienced country north of capital finance in part well in group the commercial well. credit but reach so we the the then clients as of characteristics same the think $XX broad fundamentals clients geographic expansion as expansion of both in of origination good in geographic quarter, economically, facilities that have we not business different the in we new large that for its we about to Triumph quarter prime that and but of that spots some general growth well. as had with and So had equipment fourth as in had finance, trend feel growth only ever million, that we ABL has growth pretty existing

Steve Moss

quarter? what margin, we first with accretion should That’s expect just regard wondering in here to the purchase helpful. for the Appreciate that. And accounting

DanKaras

remarks that’s million $X first heavier line little about for heavier that – $X quarter think think, I a will sorry a million $X on all I in quarter. we are ‘XX the we in have mentioned the the first not probably be at total million of But little introductory it’s that looking am of the accretion over straight I year.

Steve Moss

very you quarter. much. Thank Okay. Good

Operator

your question. with Olney comes question from Stephens. ahead next from go Our Matt Please

Matt Olney

Good thanks. morning, Hi, guys.

Aaron Graft

Good morning, Matt.

Matt Olney

portfolio, am of see I more strategic of much about now and the TBK? elsewhere ABL industry is healthcare of you about decision the for concerns opportunities how healthcare exit you this just versus have curious based why ABL

Aaron Graft

Sure.

management off opportunities will a the found from to to us as experience that a past start more and market expand credits to understand our and than may know as with our we longer have healthcare areas, with on be let’s others healthcare, So, is segment where there continue difficult with other to we and expand. that senior out just be those some From probably not going us that perspective. that transportation ABL We just for those experience. and underwrite comfortable being of are the as

and in Dallas more really the good more to but are opportunity assessment at healthcare few great need out We run we be at the was of came Matt see a transaction office that team out in opportunities lot We so of think be things, good that’s and are things for core a to run it. versus our that a in which small you Oregon. the that segments of and and a Portland, gain. to see will the probably lot we deeply so business of in can a finance And it’s down at exit you this

all of to do focusing we fewer why and simplifying And by and so a exiting that viewed initiatives were ourselves we so that those bit result it. on just business chose a and as factors, that’s just we de-risking

Matt Olney

for you that And out tentative is there date transaction? closing Aaron a there have

Aaron Graft

in expect close we it to QX. Well,

Matt Olney

the of color full for quarter, quarter of as Bryce the far on near-term provide can on downward as margin outlook? then assume the near-term. I And the with impact the acquisition maybe in a that margin Anymore first you consists margins pressure

Bryce Fowler

quarter points basis but off pretty little I little year, acquired the to as it the certainly, the I mean, are real that difficult as accretion but be it just will a that be down push over of upfront, a think the bit is a included average bunch more first overall. but framing mentioned precise, in it’s starting burn will for quarter, right. you a first down portfolio will should be few we large whole this

Matt Olney

you, Thank great. Okay, guys.

Aaron Graft

Thank you.

Bryce Fowler

Matt. Thanks,

Operator

Grant Nick ahead from KBW. comes question. your from Our go Please with next question

Nick Grant

good Hey, morning guys.

Aaron Graft

morning, Good Nick.

Nick Grant

Alright.

mean, you going here your after of at So more kind is I post where hit on generate can this $X like in these the you are of In points billion targets billion past $X talked necessary you the in deals still it back to a and targets. X does Page assets world, or if couple tax you kind at have reform your of about what that look a we scalability a number scalability ROA? slides, achieved feel to

Aaron Graft

and I believe But that. M&A, will closer think you suspect organic take a core of an we think I we year as do is and billion think there will I billion basis I still I $X achieve I we we expect would that we close its where is say, above can’t see this we Yes, achievable. on is chance will us mean, will of think would just above good timing even I that. this $X by or the predict a billion, steps run-rate $X material

we are what that’s so focused on. And

Nick Grant

the shifting the in exited the guys year risk CLO Okay, Thanks past to also big so optimize the how of thinking in are standpoint, different thinking of from for how at and steps more you And looking you then great. a big at and stepping about you business, picture in I adjusted your now back kind picture took look mean, strategy are TBK healthcare, if years X maybe does Dallas, all? and strategy, color. simplify kind so branch of more

Aaron Graft

Yes, great question.

on expansion you both relationships. branches customer of will continued banking I personnel full-service traditional see focused and geographies just retail think generating core and

X if any won’t many finance of I business. commercial find lines you new think years in

management in. will just are any have business. in us will don’t expect find like expanded to think the CLO us I we you you asset ones find business I the

So, I don’t that plan next know in has it. the a lot new X-year

of a will TriumphPay the remain excitement. industries, it think built of traditional and about we a lot of I things I expanded have extremely just on the but model growth, we platform. excited other that maybe can alongside some doing technology to same both Blockchain to a think the lot be integration continue are

back investors, with franchise, a of value in we when in generate we for we we don’t So that even think at generate we value we we lot more and billion say we technology look ourselves we the $X plus sit excellence these can returns at in finance other think our people commercial look and can traditional niches can know to when, by initiatives extreme then continuing and create don’t but exploit we some invest and that. think And of that can play.

deviate see that’s focused us and we think are really that. from I so where And you’ll don’t

Nick Grant

for my questions. Great. taking Thanks

Operator

comes Tenner question next ahead question. Gary Instructions] D.A. Please [Operator Davidson. from with Our from your go

Gary Tenner

the questions just were guys. exit, more during business associated a the that just morning, with one healthcare quarter? Good charge-offs of Thanks business for any on there couple me, fourth

Bryce Fowler

provision Yes. find number would there, our charge-off There a we net in had in had was so one that charge-off specific you material. for, nothing it previously but overall small

Gary Tenner

And about capital roughly talked you Thanks. before cut at acquisitions, capital effective to tax your you be about combination higher the back the those pace, factors reduction if capital, talk given these your July they in are obviously towards were where thinking rate, a capital then of can ratios with capital you went that recent how the about are Okay. you will accreting currently? and so tax raise

Aaron Graft

where a we do of XXXX. organic we is in capital with rate basis, Well, now formation a our capital we will on or I an have plenty growth. if keeping point clearly of at just exceeding it’s on up M&A run suspect

expansion mark a cross that initiate we us point we made proposition. you over before our of we exciting is some capitalization, change And for we now, the return capital investors one and cross mark. at M&A going an of And opportunity in unless market about in do that will some unless things continue this if perhaps I metrics it, at that. that we a some once and very I the as even billion at I before so mean efficiencies won’t dividend, know currency at markets there capital do time result until So opportunity over questions – our we of which raise it’s and and it’s we capital once use that and won’t an the know where new cross in billion do time. think that decisions an that bring we create I that’s a to trade XXXX probably – we creates we know those create there and haven’t opportunity. to as have are conjunction $X same is that will $X at open look the over we with are likely to unless

Gary Tenner

Thank you.

Operator

closing And no and this would Instructions] time showing I any back conference call gentlemen, [Operator the ladies at Graft over like am for I questions. remarks. Aaron turn to to

Aaron Graft

joining Thank us. We a great you for you day. have hope all

Operator

today’s attending. And conference for we with will call. conclude you that Thank

You your disconnect lines. may now

Triumph Financial (TFIN) 22 Jan 182017 Q4 Earnings call transcript