TBK - Earnings call transcript Q1 2018 | Triumph Financial, Inc.

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Operator

Good morning, and welcome to the Triumph Bancorp, Inc. 2018 First Quarter Earnings Conference Call. All participants will be in 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. to Officer. conference like Wyse, to now Relations Investor would turn over the Luke I ahead. go Please

Luke Wyse

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

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

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

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

Aaron Graft

Good morning.

projects pressure quarter, with of including of and lot a spite in in on On securities approximately OREO. loan seasonal our of factoring encouraging contributed lending $X.X and $XXX,XXX after-tax two our the signals our common in growth we business equipment expenses see continues first business, sale loss level the or transportation infrastructure typical first to gain - We share. diluted Triumph Healthcare Finance the positives million non-interest net integration income well. and on in earned margin the earnings our per to net that the line processes earnings with expectations of industry fourth the on per diluted pre-tax unit and basis, For and acquisition a includes $X.XX stockholders net proceeding and be for million, in $XX.X with items This of an quarter, $X.XX best interest share. per share these among

million Healthcare year a expense While experienced would portfolio cost penetration have at of think Triumph loan gave I of the the by quarter, Non-interest from is with quarter, were seasonal with XX Advisors Loan gain deposits quarter of by we’re annual down three X.XX%, Triumph down the a higher basis $XX going of year additional a the driven guidance of income, we was X.X%. relatively XX% points to and point of to Capital well-positioned earlier essentially This of economy, up loan quarters Independent the The was interest the of a Net peers. mid-QX to been the is first we affect driven in associated has first margin sale our in which similar Healthcare in the QX the in up of earnings portfolio. approximately seasonal the of in XX through million the bulk total the yields Bank. versus flat which $XXX,XXX by strong with basis repeat Bank acquisitions Non-interest of QX sale X factoring Valley XX sale basis Finance believe yields points. loan was our we down affected call. a the overdrafts, a slightly largely quarter or occurring still factors growth to among basis basis our are period. points of for partially is $XX first in Since $X.X from excluding on revenue market during X Finance that March well-documented trends date. this X.XX%, or been points OREO XXth the THF quarter, leader in million, contributed and the ahead. base the our lower, QX. and the line partly we excluding pattern and prior Loan impact $X.X and the impact losses seasonal and but from expenses QX on in growth growth and best growth mentioned for historical strong its branches public, factors a revenue million, line adjusting QX earned the first of Triumph’s of function for down and that on trucking last expanding and of largely securities By industry Triumph year. last with our record

not related We platform of for our Blockchain, rate expect include as the is to QX TriumphPay, receivable pending our the technology factoring upgrades system to development transportation increase and cost This impact $XX development of run It as the financing acquisitions. does of be of our operating acquisitions. the million. our QX non-interest integrating to expense well

do Asset charge-offs quality were higher, of an or moved basis average million, but remains X see slightly adverse points not we NPAs or trend $X.X loans. Net acceptable. concern.

NPAs end of Our the X% goal by is year. the to below get

highlights, some want point specific For I to out.

construction in group balances many mortgage our X% record X% warehouse balances and quarter were or our a period by lines. and End grew X%, estate finish. fourth quarter. million group respectively, was growth the lending loans development over asset-based $X.X $XXX.X warehouse to almost across loan We loans by grew mortgage our up QX First, commercial were X%, in the down approximately X% for of diversified product quarter. and the real million approximately Average of off

non-transportation million Capital, $XXX.X TBC the Triumph Compared by XX% invoices both purchased invoices XXX,XXX Transportation-related $X,XXX. $XX by QX, in to quarter-over-quarter evening information all during a and invoices. further XX,XXX in purchases QX. We’ve invoices earnings by to comprised this to of purchased published QX. our average transportation last $XX approximately these some that subsidiary, from table of grew to number we release the value $X,XXX increased of included factoring invoices Second, provides breakout million between increased dollar Business of our and at

of single you seeds in which always of growth a clients factoring monitor is want approximately X% work. of a our XXX we control how experience here factors to We quarter. to and client clients, can’t advised active economic total our creation ingenuity evidence the around the the pause by is another Our in hard clients, to X,XXX performance. through I of yet business can tremendous value future increased and on transportation, planting but congratulate I’ve which we’re control number team

both, result organically. to market share excelling a our Our at of we continue is TBC and as team their increase efforts,

some the broker measure TriumphPay clients efforts metrics playing remaining give TriumphPay these We how the in perspective, you are up platform. of XX%. XX XX%, number call, the $X,XXX. period-end are out technology quarter system. last the On we or our $XXX to quarter XXXX, up some $XXX,XXX are clients XX%, average begin are told directly would almost you up clients market. surrounding TriumphPay, our for payments size Three currently through invoices our and purchased in we freight of XX% processing the the XXX at further first using platform or into reporting factors from or paying of and the of are the integrated clients the For million, is XX transportation and have up Purchases are invoice

invoices, million. XX,XXX is for industry approximately processed of TriumphPay QX, for Triumph new a competitors. This itself only XX,XXX product the paying distinct a $XX carriers, with and handful During

you more along We platform onboarded to QX, of clients expect two whom informed and we XXX will progress over broker. the one the quarters clients, the keep see the is Since of have coming top freight to meaningful a end and adding way. we

domestic on a May. technologies our of demonstration for tonnage. Triumph and aggregate factor and with for BiTA the trade is and over our leading We processing be conference in to Alliance the which institution. solution in industry of expect representation. of this our about at market we’ve Transportation we of the the in will position in technology over nation represents the receivable and Blockchain the enhance certainly transformative advanced association’s a the charter member XXX freight volume BiTA financing of is presenting the edge be accounts Triumph Previously, has leading XX% board talked members this in investment transformative Atlanta payable in BiTA, as transportation membership for

what company. acquisitions commercial In we penetration also day-to-day technologies, franchises transformative These executing and of consistent acquiring business with after finance the have our completed have quarter-end, market, on acquisition presence. transportation are and of solid development addition a deposit the banks told a into we deepening our with locations in the we strategic and of healthcare where factoring payment to potentially markets, investing acquisition finance the leading we our of in QX. sale the Shortly three banks announced in portfolio

in stock members. proceeds We million. from do beyond issued an banks is single our do of approximately shares what also amount took of well million gross extreme of our X.X and year common this team of quarter, many diligence total a $XXX which a approximately in To for effort all

for to done I’ll you any back With and operator want well listening who that, over thank of those questions. the say are For I call, this to you. turn to call the

Operator

session now [Operator first will from Gailey KBW. Brad this question time, comes the question-and-answer Instructions] begin We At the with

Brady Gailey

morning, Good Brady. it’s Hey, guys.

Aaron Graft

Good morning.

Brady Gailey

close there. the ICC sometime that’s layered It guide the obviously in XQ million, just expense any like of $XX without of So deals soon. will feels

$X another to XQ. ICC about $X with million So add the million Is should that? of way that in there, in right to think expenses that

Bryce Fowler

this - Bryce. me Let is

I isn’t of you give me Let kind some date closing certain the right. mean, metrics.

million rough in little numbers, their run kind customer $XX of but of the rate there. be right is - base there��ll year, of intangible and a amortization of So at then, ICC a course,

more I depending like of on I monthly when month, net-net think, it on run closes rate kind $X the over So overall. that the mean, just million a is

Aaron Graft

or closes end But - - ultimately is you a - $XX we get gave you’ll plus we up QX. Brady, which in with base Brad the number only it If only where rate that if partially partial if QX. it, May, it’s million affect Bryce’s be should month it So, this it’ll partial so call on that expect, -- Aaron. we

Brady Gailey

Gotcha.

plus month a it $XX at less maybe So than $X $X sub-$XX million little around million a be million-ish. million should

everywhere Okay. focused for of in franchise looked Mexico. kind think you with you Colorado, just M&A. M&A do this are you Texas But your you’ve was be And Colorado geography, of in hone developing past, of the kind forward the where that into kind in know to as I this will then Texas, area? announced, New M&A

Aaron Graft

other area Yes. before We’ve for Texas an we’ve Texas right area that us. looked that remains opportunity, in interest find look we still of When the we there. West places called out an was

continue to We’re That in the that very New pro that’s else, could somewhere there that Mexico. spend the being like assets, forma in would something looking. not I think, and there’s to banks showed it, under forward we transactions, as ground our in liquid that time eighth think going largest billion large opportunities take support appreciate Colorado, said, $XX take up then was but our well, largest we - would strategy if we these we’re you at some look eighth where we you if would as

Brady Gailey

All is just finally, it you of business, how I the there just the for TriumphPay market. out TriumphPay, down years large. to transportation this is as couple right. on a for of me, the segment large an frame I is And mean, after of guys? mean, opportunity mean, a road opportunity seems you’re then bigger going like anyway I you grow

Aaron Graft

country. and could this. some of Brady, large. if I that they top two be the volumes and three been a in with I front idea. predict. point integrate one so us TriumphPay, grow the have did, It’s we you cagey to I no I can not dramatically. trying hard where come to would wish in - But the Will on for of it’s It’s yes, just mean, it’s ever they freight brokers appreciate have to we’re

all freight our improve the are -- anywhere. there spot improve we sales of collection have have, market probably that, of we’re hundreds freight improve the call capitalize of on. just our anybody we data we thousands and position largest think, that pitch, as and who we to other brokers, Beyond on second spot market our most we system, And would like data

lots so, clients really serve that to small as the out, of and some clients. and to we clients all mid-sized well-positioned land we’re play starts And large continue to of think

a So casting wide very we’re net.

next look watch what clients, of with not to so, should I platform system, to would management new And because technology their If hard similar for our what be me know the transportation the to their with few it growth. you only for but we you every would to the to it’s we’re very a client and difficult is, than for business - bring their to integration, quarter, client over adding other quarters tell come is accounting it TriumphPay factoring is you accounts say, on system. also just

And that’s long that they to as the it chance with very good deliver long-term. us once a will so value done, - as there’s for stay client we that

and headed. client where that’ll watch be harbinger this So net of is growth for the

Brady Gailey

for color, Thanks the Great. guys.

Operator

O’Neill. Next Brad is with Milsaps Sandler

Brad Milsaps

Hey, morning, good guys.

Aaron Graft

Good morning.

Brad Milsaps

Aaron, you Hey, quarter. Valley. I cost see It if from little only about to cost up funding quarter in know bit a I of points were linked-quarter. could talk deposits X you the of your maybe looked full basis wanted like benefited about

looks of kind really it cheap to funding, sustainable kind first more only was rest control anything funding you I to differently coming, that the how in more to in and the able keep to But got of that industry to cost and guess, You’ve the thought quarter you first wanted quarter. quarter points? limited counter did basis just of a the of in you’re funding like, third see couple the

Bryce Fowler

Bryce. is this Hey,

Valley I what’s acquisitions there occurring, look the folded of was think really underneath and this. that, was big into benefit certainly branch down you Bank kind the being the at Independent if of

see balances at were I think, also deposit you quarter-end. the overall, down

other a choosing including, chunk as relatively were continue listing of just not Some grow. either to lot or - was to to we retain deposits, of is service-type off deposits a expensive I that it up of run CDs, as some broker well mean, pay good just

a think, to don’t do that’s now. see branch network the fund types response will rates so to to to wholesale-oriented the had pretty of strong to in rates in prepared probably market right need We’ll I kind be grow that yet until And ICC to not terms in see market have good. grow pay those service is to deposits just in quarter, closed, listing to that that this we’ll rates a have our I be into adjust We here. things. of pricing in retail deal that bank have of immediately to But to of lot competition, broker I up. mean, going realm of or

Brad Milsaps

kind I there? of think contributor you you you that’s know there’s that additional of actually but I a know, do about of increase it and And business. there’s of of thanks. around the appreciate it’s you in know, of that as Okay, I $XXX,XXX a disclosure small piece What’s the down all part kind including part about income transportation can kind big the of thought a but for as if just driver income, would year-over-year. curious guys? it, factoring. that call-out I of non-interest as be is, have would bigger it, you general not grow fee big you kind

Bryce Fowler

year-over-year appearance the are mean, income has down going underneath of now, terms of to contributing of income the fee that’s Some of a is revenue. differently I overall. - that classified levels statement some - really stable there the amount there’s modest in that pretty total on

Aaron Graft

answer opportunity interface But, also this clients we there’s when think in Brad, with about we fee these space, opportunities are the think we - thousands you multiple that daily. of the

the we’re banking a to card think the clients cetera, to to as for a them, disappointment we we trying that it, serving their we around and grows, it’s client factoring not things onboard we et we to always that’s have open about income account engaged fee money process, relationship, and of with a banking them. possible, that opportunity ought these One do relationship business that more to you if me do those whenever And not is up clients. ought been when creates that, transfer - with possible which, field if

a So our that’s rapid a clients, story, very I a more because a It’s spread of at discount, story, client looking it’s the create there experience these we really from that. overall, it a some are but and we this on this turn buy but mean enhancing earnings to But we’re do stickiness whole, it’s very invoices things about as business. - especially enhance we right? the how and story the small at

Brad Milsaps

Got it. guys. appreciate it. I Thanks,

Operator

Jaffray. Rabatin Brett Piper is from Next

Brett Rabatin

Hi, good everyone. morning,

Aaron Graft

morning. Good

Brett Rabatin

just to a on rest growth curious, you for see was a Wanted I on about receivables. you outsized hyper that mortgage growth know just anything and the some and I can trucking opportunity. and talked you’re give of I that potential else Aaron, But year? curious, of lot you’re ask, of of us other warehouse And maybe drivers more the focused color the as maybe was piece you business? about talk lines and - the the if little

Dan Karas

it’s is tremendous period-end Karas. Brett, Thanks asking Aaron but morning, to comparison Dan had up warehouse a said. for as the by quarter, question. down quarter-end, Mortgage X% Good balance average X%,

thought So as to us service. clients we grow. continue sound. ticks high-quality difficult pricing been expect to have to a season I and continue with quarter And especially QX to the QX. pressure. fundamentally in some up They improve, provide continue ABL through We

We’re we’ve rates to upsizing facilities We’ve able and longer. those because Utilization with high. been clients are stay scale. added

the ABL And to business. it came continue solid in growth all had new but since equipment QX business that that first business we we’ve had And late. quarter, strongest into finance gone a we’ve pipeline lastly, with So about started. for see the

QX some optimistic we’re us not acquisitions I’m ABL, runoff So well. equipment. completed to overall, lastly, the we as about from then and had in benefit warehouse, fighting pretty headwinds And that

Brett Rabatin

increase Obviously, margin. help from be the the guess, thing from going the it’s of for there. to us similar what don’t And Can margin. the on banks. you much stay then what’s appreciate there? and want funding I I betas, presuming the the other then, betas on maybe around too some you specifically guys assumption idea then was deposit are ICC deposit I or I great. benefiting just just thinking will And Okay, increases ask color your to give guess,

Bryce Fowler

is This Bryce.

a in So there’s moving parts but there, - yes, lot right? So, think… I of

Brett Rabatin

Yes.

Bryce Fowler

on That’s we factoring that’s of this kind tried through, be up the yield the walk than loan on more healthcare you the a ICC to rate, …if impact which yields acquired kind run not hold portfolio, the but disclose quarter. to there. the - yields did going XX-ish of in it’s of go-forward sale by portfolio, of offset obviously

So big variables there. two shifting

I’m to a real so you to as give here. not we’ll acquisitions able precise delusion have well. coming answer some again, the so then through be going funding bank But that’s benefit within the then, And from back

net we margins So will that get interest when they closed, better net-net. everything today than still overall, we think are be

Aaron Graft

Yes, yes.

Brett Rabatin

Okay.

Aaron Graft

expand probably out of it range, think We X% goes but it up. doesn’t certainly the

Brett Rabatin

color. I Okay, fair Thanks, enough. the appreciate guys.

Operator

questioner next Olney is The Matt with Stephens.

Matt Olney

Good morning, thanks. Hey, guys.

Aaron Graft

Good morning, Matt.

Matt Olney

you of clients Aaron, number that continue the noted increase. to factoring

this clients XXX was quarter. it think, I

You’ve that And Can growth talk of got about the XXXX? momentum continue can XX%? pace That’s think nice being there. just for I’m the and if that curious, rest XX%, you you momentum of impressive.

Aaron Graft

we’ve if And much that Sure. XXXX. you at rate. look at go the every since and back has Well, owned it year, so pretty Capital Business Triumph growth achieved annualized

So the answer is, yes.

no office doing. we’re Chicago about we’ve that player. it’s market mean, made, a we to we X% the opportunity, even market the think, even And market a an we that with from due stuff are we to be opened be might up. ICC, serve the just we better question. in might investments think But and - I huge we’re talking I dominant there’s

now. say to that, And is there a think be we plays market think, is and owner large variety operators whether from depreciation benefit using of a of opportunity that into a companies believe the or I reasons, clients. from a an was coming industry shipping owner back right that feels to there’s tax certain, no the lot factor early doubt into that’s into industry Matt, that opportunity acquire transportation longer When us we operators owner more new like no because regime. And I the the of the independent or of but they they need but it for an come not small of - too industry, it’s are entrepreneur, contractors factors as teams. a the as financing. as of employees, people that don’t as operator, lot to part A lot

our place thing a And with improves day so of portion. ability our benefit to thousands upgrade larger on just very of to give well is XXX pie a XXX up this, growing, to customers, it’s we people our fund we’re and basis. that’s technology think in a Picking people us from becomes monthly same-day now The we think are the ICC of human getting service goals. achieve course, hard same higher-quality issue the that item gating to which do for almost with transaction, resource who is level enhanced a technology in the hundreds of required to our - invoices to will to who gating achieving trained funding that

the between why the same technology, brand will we of then growth upgraded reason efforts, no the our past. the as So continue in in us, won’t hiring the members growing have position our new market client level deliver see be I who to overall we market team joining and

Matt Olney

freight onboarded, that of what talking was we’re your you that you recent give about be broker mentioned an top Okay, in freight a that’s there TriumphPay, can I you broker guys then is shot weeks. of addition added color. see that And XXX fully And appreciate that give type I’ll us. a indicate could on what size? of platform example into you my the But and will larger NFE here when great. on

Aaron Graft

and Matt, the not it’s and here’s reason can’t, why. I

XXX difference XXX So of from freight say top you first from broker enormous. number the to when number one is one all,

for presence us process the payment system. about game in The that second is this, is remember reason this creating

a offer there. a ourselves we factoring carrier broker what processing thing good have that assumptions in then reverse doing and embed ultimate some freight about, their and but with we’re we do go pretty don’t know, we and the is to So QuickPay when payment the

at the level are we You your we pays, is, carriers If XX% get XX% of of is our to XX% that the are penetration, internally to going quick unknown using we factor what system projections materially. point If accept - to outperform get our only XX% start we In case there is they it with we’re where line seems that the factoring to the us verification scenario. the would would a words, pricing of the be, in then appropriately. pricing other it we And have QuickPay item inside have. - base the to can right? obviously because penetration, our then sort industry gating to of will don’t costs third-party

if vision we appropriately, that price would so to start tell adoption. And that rising would a we market us theory see

up So someone held net if that client is we some the to seeds going with their we but rather quick TriumphPay factoring a market would we offering internal invoices be something lot be system. of just say who behalf of enough to selling be And one. to that’s because a that can there’s accountable I we continuing competing through that than slip all a use, - clients, choose take there’s in QuickPay nothing share a going carriers of growing there. think to sow What estimates, to. to pays is the confident company. pick for have happens, growing accountable But the the the dynamics future we start to onboard that of day should It’ll steady and growth. And number won’t through base, on to we’re the their they progression held that thousands payments

Matt Olney

by how goal balance sheet that you on the what those lastly, Can move an And the the helpful. and remaining your the that’s talk for in cost the year? are the NPAs me, to by and of Okay, the about below you mentioned classes credits bucket? end then resolution about off And the asset year. just getting Eastern of you concentration thinking any of are those end potential X%

Dan Karas

Dan. it’s Matt, morning, Good

Matt Olney

Good morning.

Dan Karas

on We overall. category material those. a have on NPA out four it’ll And ratio in we’re moving of bucket, the focused impact and several removing some frankly, concentration credits of have that three that improving or as

So from to timing determine. the exit any challenge to at get. from where perspective, price progress for always good this cost the is point. trying to don’t loan-to-value feel going in workout But the of I we’re are those and a we we exit a from value see enormous about

that to three sum towards us it move to goal. or get move a credits, may it’s we long So four one, to if us not just up, but going it way

Matt Olney

industry maybe the the three, in what describe industries? top they are specific largest And -

Dan Karas

I think, before we ago. couple We portfolio on this exited of and them in that years at had we’ve relationships. talked wrong those we’ve a few about the we time foundries a on yet not the exact took probably took

heavy progress getting plague manufacturing we’ve the And us giving and so to result. we out that bit. continues a and need those us out made Those good are move to clients largest really of in

Aaron Graft

bases NPAs. exposure down I are it’ll where the range, estate move that one we’ve neither Yes, pretty over our assets $XX think, those NPA would net Matt, and $X legacy to us X% space the largest the of move to think, million largest the our think market, those and two we goal in are two, that are that in clear $X I million, those moved where one close moving we’re the to million trying just real

Matt Olney

Thank guys. you, helpful. that’s Okay,

Operator

Next is Davidson. D.A. Gary Tenner,

Gary Tenner

Thanks. Good morning, guys.

Aaron Graft

morning. Good

Gary Tenner

invoice TriumphPay I the was below XX% curious size. the Triumph the the data versus for so size Business at least, on Capital average or average quarter, this overall, TriumphPay invoice

over have the talk think, client would size that you invoice or smaller there the Triumph any that? base dynamics about Are Business Could Capital. I anything of differences the in time? a kind of

Aaron Graft

purely is generally transportation. Transportation are TriumphPay invoices the Well, smallest.

being invoices you’re through seeing that invoice XX% total that. for Triumph are when size non-transportation paid the So picking average Business the Capital, up you’re

Gary Tenner

and clients in it’s Okay. included TriumphPay of numbers all the to Triumph as Capital for And separate, includes indicated in the just terms be not it’s total well, clear, that invoices it? you’ve data Business

Aaron Graft

correct. Correct,

Gary Tenner

Great. And fee then question. a income just

business ago there. that that talk seasonality quarters terms in for line business? a started the insurance Can of of the working your guys of fee you’ve income couple within of terms you In out you about just

Aaron Graft

renewal big that don’t know I whenever the a it’s around. seasonal Yes, shift, dates there’s come

remind industry, moving that just serve of, we that those who don’t job time as have me the year. market. clients, started lead the have. that the let up But done guys so everyone And business all great come factoring trucking just but The to specifically serving clients at that the same only renewals insurance not - a business there was

business. lot more just seasonal losing. So is and they’re quarter, continuing there’s What that month, clients a they’re you’re of every growth think getting every difference. I seeing, not in Incrementally,

primary never serves they’re of And industry little great It’s a you connected a that, line we’re they’re nice business creating so But and think job. going an itself, to be we doing to. very as a here. know, in that

Gary Tenner

Thank guys. you. Okay,

Operator

Shaw [Operator with Instructions] Jared Next Fargo. Wells is

Timur Braziler

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

those question, just helping control a they’ve primarily those doing, deposit on active to Have I’m out last the of here markets? few left gone is the had of alone at looking in some a generation there funding of they been or kind growth side? just of franchises from First up do wondering costs quarters. kind contributing been what in the deposit they’re to acquisitions, how way long certainly, an ramp standpoint, past effort especially

Aaron Graft

pretty you if numbers, is effort. flat. There just Aaron. at look is Look, this they’ve the active Timur, an - the been total Well,

run couple who or to things. Number you that’s the are. with people off. a be for you’re employees, care whatever good So they’re of when bank a acquisition, longer one, be to no to either are don’t going there’s doing going of I reasons. continue related result There’s how

And run through off. so battled we that

that because some high-growth the we’re branch deposit you management-related of year, remember only - grow are already app-related, of end them. possibly have but we for as own of have penetrated initiatives enhancements there’s are are product, highly mobile of think announcing will our other already that able markets on, that on of we regional delivering we’ll is that right? an so the will not behind the deposit that’s - on a and treasury ability But think, bulk have some We people banks, to on, well. a by turn growth. involve we turned all with unique year, including there’s a be to locations, doing treasury should The a product result, capture of markets, lot and to better in look, By are market, of the all in by twists competitive efforts we’ve we the that markets. user enhance technology-related, is, thing I opportunity alone, or turning of XX offer those this a Essentially, few. not said, still on products of our just treasury our a we undertaking, different technology could markets, management our an them. relying of and are And low-growth highly are off-the-shelf being turned that interface, which XX we’re That bank overall, of we’re in the there. those some that in there’s XXX% that we us, should management all footprint people a second The and up all

ABL with our because of some think, clients clients. that can of we lending deposit I relationship growth equipment and finance compel

able we with to growing year. loans footprint a portfolio to we - gained we’ll pending generate say, best be don’t able that in should that’s we our do XX% matter, in commercial But the those, deposit in within will could the pick be markets within I acquisitions, accounts acquisitions the recent think the in no organically, footprint. our we up and organically can stay those the so gain it ones a transactional especially in finance up And

Timur Braziler

I If outlook, color. of I just you’ll certainly, next maybe transactions M&A a be with looking is there or That’s broader full to in integrating should over these looking integration see of we understand. good prior near-term, three busy likely to on, something elsewhere? more else capacity the the quarters. deals take and something to And couple were the the additional up, guess, at come these

Aaron Graft

I that people with Well, primarily do of it’s tasked I this the deal because that there’s it’s piece to unlikely. think to the don’t evaluate are - another opportunity, plausible year, capacity who another closing but think evaluation

points fourth the well through we - these pending the a for into we the quarter. that’s us of - going to have the as M&A and process, of now, on as a how right operational playbook into do lot for consume process in integration and acquisitions now think probably I touch our we are there’s

acquisition full. they that So the the like to tasked - pipeline folks and opportunities, are new will are evaluating to - but we keep look with who continuing we

in integration in acquisition us announcement, hear you And and until so would or I but think could best-case scenario another QX most likely QX a that QX, do wouldn’t happen XXXX. of

Timur Braziler

Okay. And then just for one me. last one

cost will $X.X next realize let’s fast opportunity the for for XXXX, savings into year? that over the projected those banks two interstate, the What’s likely two interstate. realized? the then an to slip say, banks, of the that timing million or be could $X.X about there deals of million there? actually How Is at in all Looking for savings some and for

Bryce Fowler

evenly We at is that out model Bryce. quarters of kind four post-acquisition. over This

I of that at really than we that’s that. little we think, but date, it’s can of it probably do good earlier kind we’re assumed. good the a we’re But assumption. chunk faster hopeful acquisition speed that it’s than a A

Timur Braziler

you. Thank Right.

Operator

pause This moment - are session. question-and-answer Aaron any conference concludes any remarks. for to the We’ll Graft closing I over turn a further would Instructions] questions. [Operator our to there back if like any see to

Aaron Graft

for Thank the We Have to day. you future. great you, with all, in joining look speaking a us. forward

Operator

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

disconnect. now may You

Triumph Financial (TFIN) 19 Apr 182018 Q1 Earnings call transcript