TBK - Earnings call transcript Q2 2018 | Triumph Financial, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Triumph Bancorp Second Quarter 2018 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. At this time, I would like to turn the conference over to Luke Wyse, Senior Vice President of Finance and Investor Relations. sir. ahead, go Please

Luke Wyse

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

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

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

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

Aaron Graft

Thank you, Luke. morning. Good

Adjusting the on were the costs. acquisition costs, second per factoring net of million, these These space. transportation our in stockholders we X, incurred $X.XX of earned one to common $XX.X of share. We by quarter, million $X.XX. competitors was results including, per diluted the ICC, diluted a impacted transaction-related June on for we or were couple income which items, adjusted For primary material $X.X of closed of share earnings

a almost basis average point or XXX,XXX moved points to lower were loans. by charge-offs basis XX Net acceptable. assets remains Non-performing as assets of quality of percentage X.XX%. Asset one

XX% $XX.X below guarantee. the points, percentage slightly, by improve loans, by relationship estate over of a expect X% million as Non-performing secured the to to a the of NPAs home year, get reflecting this of a up two loans continue We basis of commercial end year. goal real government our retirement remains the and addition rest and the to are

loan into portfolio. which provision increase attributable quarter $X.X operations the $X.X million growth was to loan our for of million XXXX, than million XX, first this of three higher months Our is in is $X.X for and the loss the ICC. additional reflects June

net during assets Additionally, prior Organic we reserves the to Loan growth quarter was million quarter. during our ICC. during recorded in quarter. second $X or $XXX.X The provision charge-offs in acquired increase specific offset with new million partially of million growth $XXX,XXX was lower was the the of the quarter net the inclusive X.X%. by compared $XXX.X

discussed QX previously loan and trends quarter, have be consistent stronger with business the that in expectation We our than our first trends. would growth seasonal historical the

pattern. the continued During commercial business finance quarter, this our second

now XX% million or million X% XX.X%, or The excluding grew $XX grew and this portfolio lending quarter of and or grew Asset the ICC X based up commercial finance $XX $XX million ICC Overall, loans. factoring was the lending or $X.X XX%. equipment is the from XX% month. XX.X%, June million acquisition for total portfolio grew

Our strong. portfolio bank $XXX approximately community acquisition, including remaining At our mortgage very of average the was Purchases million. $XX balances a by increased during strong billion stable. driven warehouse, million incremental $X.XX in subsidiary, factoring quarter grew warehouse this increased decline ICC Business by remained in of The real banking net X% estate. community commercial our quarter-over-quarter growth QX. Mortgage Capital, portfolio million XX% net to or performance $XXX to impact Triumph the

X,XXX. Our a number of clients X,XXX active by to increased of clients total

XX% in growth quarter. in QX, is which client clients single our ICC, a Excluding approximately was XXX

dollar of $X,XXX last published evening to of a congratulate point transportation between The TBK integrating invoices purchased earnings table the $X,XXX. As and growth for included ICC performance from our grew number balance performance it XXXX. to I at on to growth, the continued work the XXX,XXX future some information average XX% in team receivables breakout continues to indicator key a team. our and June our of $XX, We've want invoices is non-transportation into approximately invoices both XX, invoices. their excellent that said value further this those I release a have provides and of by positive before, outstanding comprised this of and Transportation-related to their of momentum. XXX,XXX factored

is to As TriumphPay, XX quarter. up XX it relates have last we which TriumphPay from system, the utilizing clients

processed XX,XXX TriumphPay carriers QX, million. $XX.X approximately paying XX,XXX During invoices,

source acquired believe presentation to payment be interest an portfolio accounting future on of yet Many not in the interest recording and loan in quarters. These purchase transformative loss Net-interest the receivable that not was in And high discount that www.triumphpay.com/demo. industry includes have In ICC million allowance portfolio a certainly is the approximately income May, its to best adjustments Net accounts at yield offset portfolio, our to participated integrated GAAP for expressed the to by Due the continue total TBC, institution. this quarter-end. XX presented was income continue was X.XX%, industry. continues meaningful the quick $X.X ledger XX% While but of million in million provision continue our is which average established QX, for our a margin to entire accreted at in on the on this A of at available interest appropriate to $X.X up technology QX. will of over we estimate for solution. ICC purchase We portfolio. we we revenue, discount among turnover Transparency hopes future. Conference, the you of will where This of BiTA $X.X accretion have QX. was in and video. the be website the this including we an

ratio warehouse fund This increased Our was XXX%. ratio at inflated by FHLB to of deposit to use XX% loan lending. mortgage to our XX, advances June

deposit announced QX liquidity in to pursue rate as closing up and not have to the quarter. was chose position. markets acquiring aggressively Net an their quarter the acquisitions in accretion the towards for margin X.XX% million interest we basis XX bank excess $XXX growth eye discount this points adjusted exclude with also to We national previously

total the five While charges we by This patterns was was of fee points. $X.X first by was the from to in Capital Healthcare gain deposits basis $X.X provided $XXX,XXX on Triumph lead to Finance of of up and points the cost with million. Business transaction-related from million increase was card QX the income in driven seasonal The accounts operating ICC. on increased previously excluding quarter for costs the of $X.X and million XX income and deposit June Triumph during primarily and service the the quarter. totaling for and month basis sale increase ICC stronger line non-interest income expense in guidance approximately Non-interest

previously. months fiscal These We for This million all the accelerated contingent $X.X growing operations, be amortized of our transaction, with ICC expense recording ICC an The intangible at The continue $XX.X Factoring year. in million total the of business. be platforms around measured technological the expense an for expect payout our determined million of of mentioned assets non-interest consideration of average our expect of quarter of and amounts XXXX by development future liability assets macroeconomic payout to over expect on be that XXXX end. million will million to and in $X.X of mirror institution QX and QX amortizable contemplated value that we amortization investment our expense and period. is tangible our will method related $XX million recognized investing increase in resulted in a invoice be TriumphPay ICC The after could the and the to maximum [ph]. factors paid to the this for in is $XX that has factoring second overall be was The $XX element changes over I million. a rapidly we at quarter prices transaction of Triumph acquisition $XX a half guidance fair goodwill final through are which intangible full XX-month closing. ICC and infrastructure. assets XX

XX earnings the value this each is paid the So, the that if have took fair our time. potential the benefit quarter. at together. to our the value prices maximum I'm $XX team earnings. our impact The the a net tremendously end to with net be the elevated of over the which fair effort is successful, In exceptionally at of change up months payout a valuation $X would earnings bottom-line. all XX-month measured maximum in next over that an been quarter million invoice be bring associated This negative resulting paying and event, indication would was consistently will liability busy reflected of it we million, have average proud that period,

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

Operator

and from Your will KBW. begin we be this now session. Sir. Please gentlemen, Ladies first ahead. will question question-and-answer Thank you, Instructions] the go [Operator of Brady morning Gailey

Brady Gailey

morning good Hey, guys.

Aaron Graft

Brady. morning, Good

Brady Gailey

number ICC, for business that tick to Is notable of anything looks where provided to specific from of your clients? the in of up guys year. that were the like clients exclude increase last factoring factoring you it the in running a if added you even saw So nice kind there number point

Aaron Graft

Yes. finally, in that this and market our Brady, now are made industry, I And customers. other of player more the as the mean the digital so and we to result the I companies a the transportation combination, bringing we we've channels, small into marketing more of reach economic we are industry, are recognition have. a which it's able think factors dominant that brand fact investments in

is obviously ICC that's tremendous on that mean think net new with future invoice clients. so, where I when purchases is these a onboard from -- annualized order. which rate, like is it puts growth a XXX clients come you -- excluding I And XX%

especially doing we some a So it's good in are I economy, things well. -- think trucking, it's a good

benefits very, the the reaping doing are good We past, the is a very made of job. very, and in investments team

Brady Gailey

platform, to are maybe new but the funding. office on I the then funding talk And funding management know a the there XXX we kind just you organically, of the right. million about I look guys also acquisitions, growth organic opportunity I rate of in out excess the side, you you opening if know have coming of increase treasury in quarter this with All the rolling think are that's Dallas,

Aaron Graft

organic get where the and with to Well, remaining almost first our there XX% of network mean, branch within the branch I national an coming is think funding franchise, -- to increase rate deposit growth deposits we in all there our Dallas market. deposits is opportunity I of of the the all,

a in existing that share don't the to in want we this way. increase do For re-price to just market need the us, need we greater We deposits, to portfolio can. to we to measured there We those if try of rates we markets when would ahead that. opportunity gather is know do a

live, traction be We will think Treasury bringing management in are see and market. treasury onboard the start platform. will on QX, by to our us I seeing to clients in QX Dallas really management that you

quantify on the going we are to opportunity. line the So at think focus commercial you, is. to I the a portfolio of is is look -- our loan can't transactional will bottom the I it are to I miss due think think working we retail will grow on not we marketing help, some accounts yields, in given we there continue Brady, can lack grow. tell is There out way an we to deposits. number our finance but are opportunity things focus what on

Brady Gailey

you you level then update talked XXX me, right. last you profitability? have might about ROA be to just when of achieve And All think goal, able from an the on that

Aaron Graft

the of saying a on, QX be quarter view going there ICC been lot a achieve lot synergies by that's come to -- this to we will work of expect that 'XX stand goal have I acquisition. level. pretty noise, of We as our further with I what to which but quarter, is good

strength good. to as by harvest QX to will where And internally equipment that banks growth factoring, 'XX. will We line efficiencies, need X, really in closing order these it in in revenue the us be think looks goal put continue we with of finance on to we be achieve that see so and bring we September on

Brady Gailey

the Thanks guys. for Great. color,

Aaron Graft

Sure.

Operator

go Please The next of Moss from ahead. FBR. will be question Riley Steve B.

Steve Moss

Good morning, guys.

Aaron Graft

Good morning.

Steve Moss

it guess that the with as how kind third the you off going factoring growth your expectations I about think what say of there margin starting business should we forward? impacts the for are quarter, and the and

Aaron Graft

time time all members up pretty setting keep there think do, records we this tired. give I we every probably you it. outperforming are Yes, month. number I be every Yes. to would to And end Steve, call, are a hesitant because listening I who team

clients that want And So, what net as this but to out, of clients. at don't look I I set would mean I say much growth tick long purchased. equivalent happening to growth rate new another of the seeing, are your And as the that goal invoices is upward. a levels going further growth continue number lead roughly to invoices is at we to in the it's

you it of and years some if I QX, just think off to could I built there see have But event together, sowed mean you grow seeds said, factors to those going would market period organically. all that over put continues this the I So we as material slows position, a three and transportation of that, are of down. be failing growth where suspect I macroeconomic QX.

Steve Moss

Okay.

just And the higher then, margins That terms purchase we the just that to receivables given so account excluding factor probably points backing fair? about of acquisition the margin ICC basis so XX in think should hit growth? incretion out accretion, from

Bryce Fowler

is This should. Bryce. It

I quarter drive to for ICC tend think in will just that little bit. up QX the of a full inclusion

closing As a will during it dilute quarter reminder tend be though, to well. down. back as That will banks that

yields of So flat kind overall, in loan be third quarter expect to to I quarter. this the about

Steve Moss

expenses, deals the And million it the the helpful. XX you half third was That's towards Okay. then mentioned of Obviously, on you quarter. back quarter. have closing for

you what fourth about wondering expenses thinking kind quarter are of well. guys as Just

Aaron Graft

clarify. me Let

September. point Bank on Springs, first related or So XX.X Citizens any Mexico come one we That increase called the of does of five. which not of towards is acquisition Bank what of QX, four First National out the include will of million New part to Pagosa Durango, Bank

then in rate guidance are that. we XX.X of include guidance amortization So you with are call QX where to where are we'll At the on going the of we won't QX run not we get that full that will QX And the banks. books. on think to the -- be have million point, inclusion a but organically this we intangibles that sit expenses, give our next out give around QX our for on

Steve Moss

thank right. All color. much for you Well, very that

Aaron Graft

Thank you.

Operator

go ahead. will question O'Neill. from Sandler Brad next The be Milsaps of Please

Brad Milsaps

morning. good Hey,

Aaron Graft

Good morning, Brad.

Brad Milsaps

either from on million question with am assumptions to have around I has the some curious, follow-up guess, Just at bank expenses, bank. initially original or your ICC anything I Steve's I might just acquisitions? changed on the contribution your guidance cost the savings, assumed XX.X for included

kind is So other as there or continued in of that increase ICC just curious, investments to of most all well? related

Aaron Graft

not think full Yes, a integrated. quarter, X.X so having we ICC, to understand been fully that is -- -- million related I in for ICC has which will it's

in is integration infancy. the fact, In its

we organically. So to this expect business us without built, platform project XX% savings year me about efficiencies to the you'll labor to Then we operating system, workload to we'll that happens have. of where to allocate able larger in as organically grow saves, The saves as a should our their to continue costs talk far team heard Delta don't cost on year that think a see it in being coming ICC. start as for I come October expenses anyone XX% the really the growing integration we the of pool on material from to costs grow the

start We in see will QX-QX. to that

acquisitions. around to acquisitions announced cost been any think There savings the bank changes we guidance This in the with So gave XX% respect as when we're that. far I we haven't the as is our expected range. and those

Brad Milsaps

around signing mentioned all conferences one the further kind up freight I been been mentioned. running if additional you've what any know any Aaron. hard TriumphPay, guys broker, maybe follow-up, a know it top I of you color and you great, kind you earlier, -- be would curious apologize any of it great. but just presenting there, just traction update have Okay, targeting just And

Aaron Graft

system to from gone quarter. this we've well the Yes, clients last utilizing XX XX quarter

basis a on percentage a lot. So, that's

continues say starting work -- I potential multiple so platform. come be we'll that small there's would on were with there. discussions course a to to those, in the counting I'm Of and denominator I would that of coming announce percentage in follow. expect more we well-weathered the one not pretty clients we're to hopeful our And to when we quarters able with do

We continue system, in on the carriers to see interest onboarding to has the the number system of increased.

So it's better of for we involved. the we'll land top indicative go. for you I to will will, it a think jump carriers, from multiple when just I But QX is better because go to better for QX everyone just convinced way the them, market. It's I freight XX broker, of a them think saw am we which to where better

to see jump start volumes You'll dramatically. the through that TriumphPay platform going

Brad Milsaps

thank Okay, you.

Operator

from question be Brett Please Rabatin go will Jaffray. ahead. next of The Piper

Brett Rabatin

good Hey guys, morning.

Aaron Graft

Morning, Brett.

Brett Rabatin

Wanted to make understood. sure I

obviously had you provision. So duration on created ICC portfolio a really short the which

make Just ongoing Can a sure just a the we maybe provisioning you the required now ongoing new kind about portfolio provision forward? you've little want what's reserve. with just of the and and talk to needs, higher got here bit talked from going about

Bryce Fowler

on Sure, is shot every at take short a I'll average, least, turns clear very it, or that on up let's XX days roughly portfolio the portfolio so this little at It but XX-day so. Bryce, -- that let's just ICC. is call a bit first

now, it under end balance allowance now that a outstanding outstanding so expense essence through created accounting quarter. the provision in for that that large that over we an need So the us with full the now and provided fully so in portfolio, the is full bring That's was reserved. of June, ALLL that purchase acquisition portfolio we're we've behind on at the

reserves, provision portfolio, of that drive our net kind accounting on forward, outside would growth impact one that that of to and charge-off, in of believe expense, mean that of I normal back changes going on that shifted thing our. that the mean, specific rest that coming normal. so would really be and So I we has

Our rates that drifting we've been given mean loss of all rates time unusual. experiencing the factors down and in, over good nothing our that, loss are kind we're but the low environment in I economic

Brett Rabatin

the to did level specifically in was on any that capture sure from on essentially accretion that you of it most deal want discount then or QX discount case. going thoughts the just forward? ICC, here And Okay, from make the accretion

Bryce Fowler

accreted, been all has That of Sure. on that. sides so both

provision so accretion there's the provided forward. has going gone none fully discount is the for been all and So

Brett Rabatin

Okay, about do a lot great. income, And and you predicate to on add it then just and of I But what going thinking the base. client know is TriumphPay in from we terms here up what more fee tell next part can earnings your, about that to more us or Aaron, in start contributing to in in forward? quarters that going the see show income few of you

Aaron Graft

more are that who Yes, freight capital. Not a that, first to and that that's also opportunity see of in on to I relevant their the But does improve only is you'll penetration is works ways. think brokers gives carriers it reasons to it these we're cost provide of freight pay to the become credit of market it starts provide efficiently XXXX, these large hauling and truckers behalf an doing independent the to one start through gain excited large TriumphPay them so pay us brokers to the number opportunity both answer. about

brokers to exciting opportunity for as the financing supply you're it call to revenue gives in and we but it is carriers, an out and see it. works down as you're see we going just all both supply fees around freight we'll maximize think you to up for chain go tool chain lending. and and so the forward, both which And a in going it ways, And it us

think industry. see also In it addition, you'll to in fee XXXX, are income data we else the to data we capturing by has spot anyone The that in Brett. we hope freight that that aren't the elements market we start captured that capturing, are

to to -- could we're parties, third evaluating and we monetize to just be ways amount data marketing clearing we it so process that pretty monetize the intend to for it use think we're loads And the or of in and of valuable. purposes

same income you see B related directly part which So that some should it's is of all from TriumphPay not ecosystem. to the but

I again, that really so, in to starts And XXXX. think up show

Brett Rabatin

be if just you if I Okay. out of next view? purchase you're slide kind year-over-year. your share where the on that maybe of year I And is that guess realm then market about the kind opportunity for my could in question slide possibility one of deck. in about out receivables are if in think that of you look again that's almost And one XX double me, accounts or someone your thinking two, at of the said, XX last then the hey available double And would there?

Aaron Graft

Right.

you XX at market slide So the see side, you factoring, if is you capital be and Triumph would traditional which $XX look at look that invoice the business billion.

that from the take pace in a be going annualized Could billion current somewhere more, run I we're buy buy in could you If on $X to with little less. around annually. -- to be or at QX ICC we're invoices forward a this rate would little say point

you the grow. XX% that market measure, have, we long as leader And by we at continues market. So I approximate the the a we think to of the pretty information on think we're market least are, would

But think continuing not invest if requires create the in market technology, that there this it's team, processes, room I us all marketing, as absolutely to the so in things is in And go we're we've share, out opportunity in the of running done. in the the and to it market.

Brett Rabatin

the color. Appreciate great. Okay,

Aaron Graft

Sure.

Operator

next Gary Please question go from be Tenner D.A. will of ahead. The Davidson.

Gary Tenner

questions My been answered. largely have morning. Good

line fees ICC of in embedded processing the terms there in that factoring fee way well? that of clarify to regular any business income purely just element capital fee item from the Triumph as item. is on TriumphPay or Is line Just and that gets

Bryce Fowler

not substantially it's is line factoring. in down… The all TriumphPay that item, That's

Gary Tenner

at minimis reflected wouldn't… that is fee And as that so anywhere this a it it point is de or

Bryce Fowler

big. couldn't you up It's very minimis it doesn't round -- so now de that

Gary Tenner

Okay.

everything answered. think asked and had Thank else you. I I was

Operator

Olney will Please be go ahead. of Stephens. Matt next The from question

Matt Olney

Hey, morning, guys. thanks. Good

Aaron Graft

Matt. morning, Good

Matt Olney

quantify funding utilized await the XQ some And in the Want to to the bank of of back go closing borrowings what I the believe cost trying to of you acquisitions of you our… just some said wholesale third terms this and in kind were could the these some understand wholesale this anything Can for what side. you be impact to of duration as of quarter. I'm some in the of around borrowing? you of

Bryce Fowler

was is Yes, all of durations market you'll of as Most in this off one Bryce, year, be so brokered the give the cost refinance did in. short not bank was on And a Matt. that see an the acquisitions with really us very we funding there the inside potentially what comes was really they'll deposit large. rolling to side. pretty It maturing -- with opportunity stuff

of large. going really toe out as really into closes. not just over competing expensive. that until So that's bridging on the not, We noted, markets pursue kind more and We the did it's national were money we one-year-plus bank toe to

Matt Olney

down third in are XXX%, Bryce, ratio And that if assume from now deals a be next that closed us move those we XXX% I quarter? to could loan-to-deposit understand would XXX% bank the help or quarter, or a to what at looking

Bryce Fowler

is a you that Yes, kind XXX%-XXX% of a growth loan variables rage those level. right, continuing I out threw of but it's lot probably think of well, and function and about things,

Matt Olney

return for then Okay, details over went of some goals on already in thanks. XXXX. your assets you as as And the far

for ratio. of ratio? expectations of just in the you your You talked that about XXXX? end the the net Could remind us past the also end You've mentioned and about XXXX overhead at

Aaron Graft

The Well, side on yes, the great at so looking out that's question, X%. we've goal deck, eight that there, is Matt. a if laid you're

part is conundrum overhead in the of factoring business, fastest which Now also here's that our is happens have business -- growing highest the our the to ratio.

see natural So virtue the because you're the think banks QX factoring come what overhead rapidly. normally seeing business we're ratio is is you'll acquiring by of net that growing right you would pressure down that pressure not is see acquiring. downward that the I the now in so in normalized But

ratio achieve think factoring X%, XX%. so we And because I average of think number that given have net but longer. to to to income the ROA be is higher it our long-term take portfolio overhead that GAAP still will I goal a X.X% can assets still I X.XX% the will yield range on with getting net X.X% our the the close interest to in

Matt Olney

and those that, are appreciate I okay. Thank my you. questions. it, Got

Aaron Graft

you. Thank

Operator

will ahead. And next question of go Rabatin Piper from Please Brett be the Jaffray.

Brett Rabatin

lay just that it I the and the given with Colorado for kind factoring the the forward? closing. going back-half the growth think of looks year land in follow-up bank going that good But need XXXX some the if re-up you when like, terms how your Hey, in the outlook maybe you in Can wanted anything's Aaron, of and about a the in to you're having with seem you're ask M&A growth for as give funding of relative to us to just deals. additional XXXX would banks you'll of in funding view you change banks to business, the the you struck deals for early

Aaron Graft

need, which particularly profile Colorado banks, for deals as full-priced, our don't very go -- excess have they part good think I don't since Well, people announced very continues up. you some think M&A weren't the those was it's aren't high our pretty to funding, very I Bank say announced, pricing, feeling been are could meet -- because you radar know, we well most we're Yes. good. acquisitions, upwards, pricing on loaned

the we've we continue past. us done So in for what

sheet the look position who and secondary some from you're deals, pricing continue they money are that certainly markets where well acquisitions deposits that and markets. profile more may shed might of in it we bank and are look larger, WE a would dollars stickier over billion that a but funding. balance better competition. in and footprint, branch view both establishing core a they what approaching to as at consider think other are look to to order from to in us not is branches continue more that markets regional And whole and something have We intense that we to want be facing noncore large center at banks have and banks gives such then the enough we in do

even whole; I say different at gotten in market's recently many more out the expensive. all everything's we But that deposits view. of slightly valuable and 'XX, there more we acquiring were would think the XXXX, the peers. has that, of We from on than our there gotten the look back So and still since world are opportunities more in

Brett Rabatin

follow-up, other quickly the the Okay. deals, And does do the what deployed it and one how XQ then with just liquidity absorbing do that excess bank in interim? in you get that with you're

Aaron Graft

I of mean loan QX, think -- be I a function in strong. still suspect will, would I growth it's

You because real flat finance factoring, see just going think see but to well. almost equipment commercial fact mortgage estate slim, you notwithstanding commercial I That's warehouse still saw that the in gotten you're more think finance market us that as we opportunities was whole. a And have as us quarter-over-quarter. for grow

to So be we our buy that funding between $XXX we them, allow that deployed it's is million short on that, drag. the to off, liquidity expensive not a of some going have effectively we'll the roll the combination of duration more of day plus

Brett Rabatin

Okay.

one, to all So you're okay. essentially day going type use

Aaron Graft

Yes.

Brett Rabatin

Thanks Great. for color. the

Aaron Graft

Sure.

Operator

from Meyer Travis will [ph]. question ahead. be Hughes of go Please next The

Unidentified Analyst

of you're XXX? AFE is XXX balance, I clarification. guys. we point the that yield apply should or GAAP about, quick a factored just receivables something of factored XX% to it the Hi, had The receivables is on talking

Bryce Fowler

Bryce is here. this Yes,

think we -- quarter. estimate gave total expected what XX% the to for be next in we quarter next yield the the comments I an of introductory

Aaron Graft

would AR that the And $XXX million. on portfolio of be entire

Unidentified Analyst

said? able you you over is And how grow did be were portfolio that fast you guys it to XX% this Okay. to think time, going

Aaron Graft

to to hard you organic to hesitate -- that's growth had we to just what know, I I I and is would quarter, I make Travis, XX% point mean in a would mean, prediction. hard last annualized, the that's XX%. think I it's but client

so would couple going that QX market expect variables we we a hesitate would QX future you of to that but I I even if the there's with will that. And tell just QX better sit. have in So net close be fact at be and every many add last And -- purchase. than just we see but time even post where invoices that I play that to seeds I invoice the not sizes we're clients to give for to than you I surprised sows trickle upwards, when quarter we're continued new number, better the this growth, continue

Unidentified Analyst

my Excellent. That's all questions. Thanks.

Operator

Please The ahead. next Securities. be question of Fargo go will Shaw Wells Jared from

Timur Braziler

just the I good want Timur morning. in question, third looking make heard close first slated to Hi, to filling is This Braziler quarter; for guess sure just deals that Jared. at actually are correctly. I I in the two my

You're of close early expecting September kind there?

Aaron Graft

goal our September Xth close date to is them, Timur.

Timur Braziler

as these deals? just what Okay. the market, continue higher expectations kind there's just your And deals deposit looking the how specifically since move then of to the attrition thus wondering the at deposit to at is some other announcement maybe around institutions both rates far the in those attrition looking base of -- been and visibility changed and

Bryce Fowler

their them performance has overall side. Their mean, very I with Hey, sheet funding on been this since including balance has very Bryce. been deal we've good. stable, struck the is the

the line so has what at in expected with deal on did we nothing is everything with we that changed time them, it. that really So really

Timur Braziler

looking in were one think and the for just me, expecting then guys one And certainly a materialized. portfolio, last good you quarter Okay. mortgage QX, I at here that's

that any how into carry is to provide forward, going you and color great. Just momentum much would kind of that QX, portfolio of can on expectations be looking around

Dan Karas

rate of mix because Dan. the to shifted interesting It's roughly for morning. has An purchase. purchase XX% Good from is environment that XX% us note the

a we quarter, impressed I'm quarter, so, good with QX. the that momentum And continues really and had into well, and

think mix overall refinance, purchase and we doing but is of the more because the great a probably susceptible between seasonality team to will I job. be

Timur Braziler

you. Thank Perfect.

Operator

question next Tenner be follow-up the Please And of go will from Gary ahead. Davidson. D.A.

Gary Tenner

Thanks. XX.X expenses of clean did either to I just of number the for a is ICC or know third deals, that your include to incremental operating the any guide expense any that quarter are does you related otherwise? include cost said that not XX.X, of transaction acquisitions I forthcoming, of bank that wanted or any that but these clarify the

Aaron Graft

any banks. Right, costs, does acquired from it not on nothing transaction estimate and the include

run So our it's structural rate. current

Gary Tenner

Thank perfect. Okay, you.

Aaron Graft

You bet.

Operator

Aaron for would session. to Graft remarks. additional we to showing the like in And over conference question-and-answer any no conclude questions, back the will Instructions] hand [Operator closing I

Aaron Graft

cool Dallas out all you stay there. Thank for It's joining degrees today, so XXX in us.

Operator

gentlemen, your time, and Ladies disconnect for sir. At concluded. you, has attending presentation. this lines. conference the may you Thank Thank today's you

Triumph Financial (TFIN) 19 Jul 182018 Q2 Earnings call transcript