TBK - Earnings call transcript Q1 2019 | Triumph Financial, Inc.

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Operator

Good morning. And welcome to the Triumph Bancorp First Quarter 2019 Earnings Conference Call and Webcast. 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 President conference Relations. of like Wyse, to now Vice Senior Finance would turn over the Luke I and Investor go ahead. Please

Luke Wyse

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

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

into on logged refer the you're please If our our to slide webcast, including online, Safe presentation slide available Harbor statement two.

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

Aaron Graft

morning. Good

to first or stockholders quarter, the on net the income we per quarter earned $XX.X for For million diluted assets of common $X.XX average Return share. was X.XX%.

deposits million to cost total in QX. basis declined XX points. XX We loan yield of Loan basis X.XX%. basis interest X net quarter from to margin X.XX% down income declined accreted interest and to million First $X.X QX. discount Net basis points XX the $X.X was points of points increased

this consistent drop-off has was caused very first margin net the and especially five factoring Our in years been last to so was our compress. it loan soft and year. interest growth the This over quarter

shrunk portfolio reduced utilization. to reduced factoring and invoice due individual sizes Our

due surprising Neither were the order to portfolio of a magnitude. bit surprising of Our by it but payoffs. was shrunk these ABL also occurrences,

is estate real is million, for in closings portfolio to growth loan well. commercial and continues our quarter organic which in That exceptionally showing side, which positive our $XXX perform is largest is QX multiple up million encouraging. be note our ever. lines will XX% pipeline grew the to On that by current positive of growth $XXX business, second between QX A

decrease it but bad to all quarter. in $X,XXX either non-compelling generate Triumph to is during the clients X%. had unusual, As off result or million come factored provision to XXX which growth, The Business Not XX,XXX clients our increased of sizes by number but invoices a the factoring a the This Business expense is what encouraged million. the quarter, of record to will we XX% the can year active in invoice XXX,XXX or revenue. QX. control total that during of invoices the of weather, QX. total can't We total I'm quarter same QX. utilization, The Average QX, year of a We Capital decreased amount clients of respect parked Triumph revenue for be in growth many quarter-over-quarter utilization loan drop of in our on of purchases first or the control, the was much of and XXXX. None QX. new exacerbated contributed quarter. invoices X,XXX we for drag as XX% will of billion trucks $X.X revenue a the a with clients clients is to from illustrative $XX per at this purchased $X prices, number of driven at of vacations. or total their million in in decreased to part towards $XX decline $XX share transportation This In Capital this to purchased decline earnings end a decreased due coming in for receivables by

less than generate, month on in revenue, very clients smallest $XXX Our although a average, are the yields high.

quarter our five with matters, high-single grow continue George client these that expect to the but will in clients perform long which Thorson for biggest which our of Business well the of this well Perhaps also join clients, Capital greater variables, translate hiring we controllable for it to figures Geoff us of invoices. monthly term. will Steve Hausman. Geoff the will Brenner of and right Net digits. other into the leadership revenues yields as largest team, value Some this year matters volume growth generate including mix create a was I to Triumph the the news purchased CEO. on senior

cultural Geoff leader, and business. addition greater great performance this analysis going being a metric-based to discipline bring is In to into

Given overall to this experience. profitability purchasing the customer of invoice purchase in and our impact that invoices million process X efficiency we even have can small expect material a approximately part each on year, improvements collection and

utilizing clients XXX from we quarter. For clients last TriumphPay have the up TriumphPay, XXX system,

During TriumphPay invoices, processed XX,XXX $XXX carriers approximately the million. paying first quarter, XXX,XXX distinct

said everything about past for several to the this quarters. we have business continue We believe

We queue TriumphPay join logistics have work in to country largest we a to the to with the some pipeline system of customers. companies and continue become third-party freight brokers the of in the

to features and also provide and truckers third-party We utilizing more continue users the system. to flexibility to technology logistics develop the

solid. quality asset remained Our

December loans reported points. and metrics versus our or quarter XX X flat the down were for asset basis of to All charge-offs were net quality average

deposits $XXX ratio Over inflated at XXX%. use million ratio declined decline mortgage loan-to-deposit foresee Bank front. have on deposit increased quarter-end to Loan our to Federal repeating. in or not work Home to do million X% is by driven lines. our of do This the by fund we $XXX That being intentional, advances was event approximately which first Our warehouse we said, of this quarter. Total the

our the and overhauling are offerings efforts. retail sales We in product process of

throughout this remainder a We capabilities launched which the and our growing the to we major quarter year. upgrade have start recently to management treasury of expect balances

heart on to hope which we in the ground open banking broken Dallas, end of have by this we year. Finally, our of the center new

We largest opening. be branch our this expect shortly to after

call. we in million X% expense XXXX. our of about quarter the the provided last expenses projection now to $XXX slightly that for second $XX.X million increase quarter $XX.X expect First earnings given We will We our above were of full-year million, quarter. better estimate estimate non-interest expenses than last

For non-interest income, of the non-interest income we in we expect other quarter not had be approximately do $XXX,XXX recurring. that to

for shares a million. treasury During quarter, shares of we average good at purchased these $X.X stock the the $XX.XX, We total prices. of believe XXX,XXX are price our at an a value in

to the transaction, on return assets the absence bad is business, front. to repurchase intend in balance to throughout we year our a our remains where but I the will it In peers, of back buy on continue not if, must shares deposit start we investments versus be. view, undervalued. suspect shares A that a our the grow making relative stock our we opportunity However, particularly to is our average X.XX% to not

We at have are a goal business we still arrive X.X% to assets is we historically believe we average will encountered. long optimized. our once optimization, seasonal annually QX. we on variances ways go where we achieve the for Once return that can experience we fully to have A run our

achieving year. towards work X.X% QX a to continue ROA We by this

this been order rebound quality won't Whatever rebound be achieve transportation to order gain strong. market seen that remains how will on the we need the few year make to years, In goal. to a can lead in It past case, long-term in to to compromise will unfold. the has We that short-term credit that consequences.

think do we QX long-term. this we what we can where year is of than importantly business for the in do run the More

a full average minimum quarters assets. a year us full-year next that, XXXX a and contributor, back at better to to As this we average turn full-year I X.X% said, a a expect on a becoming on we programs or other X.X% over achieve functional operator My treasury which run any X.X% with can which likely late I'll initiatives assets, the and year ROA the believe like are X.XX% TriumphPay the for for return once include XXXX that for goal With questions. of call few is and we fully for will to or early year. retail net achieve return management

Operator

[Operator Instructions].

Stephens. ahead. Matt of question The go Olney comes first from Please

Matt Olney

guys. morning, Good thanks. Hey,

Aaron Graft

Good morning.

Matt Olney

I want segment. the in factoring to start

slowdown you closer be to was slowdown of which for is is this pace or clients talk you good about new a seasonality, market Can do that the the is added XXXX. XXX and expect to would XXX. business, in and growth, from but this guys still That in reflection rest it experienced saturation, a around I of number the that the think you think you you year? what guys what

Aaron Graft

that I rest the hesitate what will end Matt, very being it still I the will is projection. say as a as of make specific year, to for far pipeline full. the up

is variety I will XXX a did view spot onboarding high say year. the clients don't watermark the reasons. that for lot feels material XXXX than more like I – feel for of that was of So, a new And year last deviation XXXX. doesn't this like the from net XXXX so everything far that just market a

And is invoice that Triumph with and but I how holds Capital of true more true market XXXX, better Business holds now so, think like to the still what sizes. continues with also average we're I feeling capture. much than that think averages, the historical

on from of won't have on numbers, absolute net deviate percentages, percentage, done course, we I that past year So, suspect what as we a grow will smaller. the gets we've it client the in growth of materially

Matt Olney

range, mentioned optimization. And full full That's that XXX year ROA assume then, for but could contribution remains Can some you mentioned just I you optimization? mean kind helpful. that onboard that okay. as that TriumphPay. would what you kind as at Aaron, full of the well of clarify for a around long-term Can Sure, numbers more management TriumphPay? more put treasury think you fully from the

Aaron Graft

it a it reasons not be pretty not break of in with this end by large these very coming say talking some going freight to other are depends who the that to into we're it some customers the at but TriumphPay of Once sales close for starts brokers later to we're dialogue this cycle with. innings swinging dramatically, we large if It than just above you're breakeven, now swing upon year, competitive Well, swings, with. about to long very will time number. that, that out

Capital, X.X% many We Matt, our our we've TriumphPay pretax ROA business, like Business So, a think take TriumphPay, line probably before, factoring pretax as business. what ROA is to X% more said X% you there, times X% is of end is Triumph to between you'll if seeing up business.

as So, obviously to other in had, has start revenue yields that see have similar on business, going the growth than our come margin scale interest margins. very far Business our overall it's and in to same Capital of effect and you net business or Triumph it's that as that as lines different

for as That million. be between advertised rate funding to our $XXX that, market, we through this ROA, far As we need highest market. this million relative we're sits in rates in what channels to size have of cost where just to deliver loan going the the organization the need year incremental other full-year and X.X% is the growth highest than meaning $XXX getting

the is of out now. X.X% generating can one our retail incremental to between help right up go prices we at treasury ROA the things you So, dollar need get deposits are than to the offerings and to very with different highest management million that and time $XXX

better we get retail think the our costs creep points a you're you'll because X on X job to see network, deposit as throughout to and which going we that, with treasury points management platform so future. basis existing that, without improvement a for to slowly basis clients foreseeable we see will marketing of there quarter continually doing our compel do better And think

to have we net which above need that interest think can to do. our we So, protect we margin place in X%,

tied in we for So, like like I'm a profitable revenue that that. Matt, our volatility more and it are to ROA. serve to can't of market saying full to that just less you're by that quarters but that you're going market, for do going XXXX, is quarters And freight there efficiently a control to is the margin, at fully ROA have a we year, a full the be some business. year, by remains, a most that our or can have fact X.X% of the market, probably that is some are virtue optimized All wide even is which X% X.X% more in spot XX% and with

Matt Olney

helpful. That's Yeah. Okay.

I'll You guys have been pretty seasonality back now. clear Thank for there you. hop the in while about the queue. a

Operator

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

Brady Gailey

guys. Hey, good morning,

Aaron Graft

Good morning.

Brady Gailey

XXXX. all I pretty yield seeing possibly talked expansion you dramatically, has interest How for margin XXXX are year-over-year, margin flattened. I outlook the changed know, about rates know last thinking about XXXX? the quarter, has some net curve we the the versus mild on

Aaron Graft

the of outsized going we're Triumph see Brady, Capital. we unusual think, year I X% to or margin net interest unless with around finish in a Business growth

So, slight where over that very be now. a we contraction would sit

and X% I relative latter will it don't probably number. being to think stays QX at contract what to right year, part think I now, of ends number then see is the know. factoring the in mark, looking X% actual start it I you where little expand more towards something that around the up But and if a you're the

Brady Gailey

Is repurchased the company. you about you – there bought of anything X%

level? magnitude that how do will be much active quarter, you of to think at front. want this to This it on sounds you continue about like stock How the you buy

Aaron Graft

buyback transaction the day back to transaction, we me M&A earnings not don't own we doing of excess to spend next be, buy deals of we deposit-rich by the buying about dollars because we interested that chewing up through if you live to I It's very you our every and a lot more your end It's what back those order stock, we might capital this the acquisitions. XX opportunity your And day. liquidity currency less we have Well, a compelling our remain we what at Brady, to times about than of out. about, think to and same that. use or in in branch in forward stock, and capital think that stock day back support our buy as remains mean magnitude company have

as deal And so, in buy we how the that But race be told evaluate this things intend buyback think a on it's organization market would answer to we still to above to at. could M&A I ratios capital not about would pipeline. number us a whatever that not are we we going run would much that absence stock – we’re our we few the how that of the in keep

Brady Gailey

on price just then, you – the more is Maybe M&A. mentioned color And a little down. stock

You front. or you don't it the near M&A is term have not that think in to happen? M&A is want as the happen power you Do on likely much or may as add something may

Aaron Graft

to it's can going for pristine not between hard of maneuver, metro organization market, what what likely versus now Brady, and to That's that. you, right? It's If would we may middle think be the given to may deal to our happens, tell like me major been or I trade especially large not where maneuver happen. is distinguish our a never a relative take we it not a and tangible in do book it

imminent. or deposit it's is a currently that's acquisition think within of I than the that but announce the still that institution there year an this not, that's profile will I think has more either or nothing we So, transaction we that a favorable probable that likely adjacent markets to branch operate.

Brady Gailey

guys. great. All Thanks, right,

Operator

Brad from with go comes question ahead. Milsaps Please next The Sandler O'Neill.

Brad Milsaps

Aaron. morning, good Hey,

Aaron Graft

Good morning.

Brad Milsaps

more specialty community $X I pull-through Is will kind or $XXX $XXX how mentioned bank quickly, the might finance second kind lot I on your the what kind your to loans think pipeline the expected towards writing but million million of higher look that sort – that kind $X of you million A more pipeline of was to curious, it that annual would was rate end. guidance close of your was for of or and the mix million like? Hey, that you impacts and assets just I quarter. yields? have of that type

Aaron Graft

Yeah.

bank commercial a profile it is to and portfolio probably Bryce, be you two-thirds to with close. would period. the when anything end know I total predict, it's don't the if and fairly this accuracy, averages about add rate pull-through where be say, So, It's where Brad, to similar would of situated I finance impossible that to all stuff third of or have will versus want think now. community you safe

Bryce Fowler

[indiscernible] are in there and is actually about the and period from proportions I the to It good. seen There the closes talked right. period it's think is a lot on in pretty through. looking have a what is pipeline he we But pipeline

about million that reasonable $XXX range I think is estimate. of to to that right. be mix $XXX would a expect million I

Aaron Graft

credits to growth. accomplish through to doesn't going start And to have much the one We've We've been deep is last few as meaning we to year. to around I dive And, into we other to there. that to of you're going ABL about firm the the for like talked that that to comfortable an start thing talked get foundation that weren't very I about move forward. payoffs hopes return you'll credits Dan's the I spent the think group think Brad, make X.X%. other – think yield way, is add are hasn't what is we a us that – on under comfortable go relationship feel and start remainder quarters through ABL with between that you'll portfolio exited otherwise the leadership because And sure quarter the this see with. blended or important I We see that's is to see doing are that now have that

it's product yielding that the to highest among we do. next So, factoring,

rest invoices, invoice have back that us to things going are this those utilization, our and achieve so, again And year, the and recovery that of are quarter alongside of help sizes growing goals. on and to the through transportation

Brad Milsaps

Great.

but year growth in – timing loans? the comfortable change XX-percent-ish the can obviously, total still the You – for feel kind of

Aaron Graft

Absolutely.

Brad Milsaps

hurt you're curious change, some subtle kind on other on then, that any side cost curios, in pulled? on from to appreciate levers the changes, know working I that fourth business and you been able savings with out and quarter be through if deals that through the have expenses quarter few of additional the color that a side in everything factoring know And last the drivers kind and second have I operational year. but you expense year. Okay. just could realize just completed else for the all the may revenue of a the of there things of the you've I the kind it's you the you worked but see that

Aaron Graft

number you, The $XXX of levers. includes gave we most million Brad, those

below I'm of drop to some confidence have business number tell can't is in expense degree where includes they – you still giving that. areas from you that initiatives any I which our So, that will of some still that There items it are line reduce I currently. going are certain

Capital. On to Business to other the around of necessary couple here other the a institution done way add offsets a savings. run things like senior it run that needs be for we Triumph We've hand, think this we've got are CEO hires those that some

it revenue if see line to if So, like to then pretty bottom do you $XXX that where prudent some probably we yes, figure confident there we million I'm we find. we're start out – that is growth, the doing and the number once to freeze and do what the can we will, answer, with If dramatically, economy are China think normalize, slows that's is where which to we're going things Brad, expenses some economy be reacts what things that land. if would

Brad Milsaps

Aaron. Thanks, Great.

Operator

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

Jared Shaw

morning. good Hi,

Aaron Graft

Jared. morning, Good

Jared Shaw

of how I quarter-over-quarter we are at with the on things. the think you of integrated? that still growth more the the a could seems you any full boost opportunity or integration Are just getting guess, the some interstate that slowdown When like much that growth rate, help is than seasonality, I still is seeing we're fully the pressure and growth – from expecting. the there the acquisition future? given most in on there look yet, it is integration little benefit you or hit even factoring, noticeable

Aaron Graft

Yeah.

market, we that that base and sync we're that the some that doing is market and think we're we're factoring what run the is our And have That our not eliminated into but market El done all I Coppell So, are let back marching the the going being we're things it's say they're that for run in colleagues efficiencies. yet, we streamline those generally that of is market at in sure on there yet. are the serving the together make in and question which we integration customers me we've customer I'm that. it slows Paso string serving are and best contractual like and of office late falls you at the have not worth freight when the That first achieved to that down and – me working all matter answer below the a in duplicative time best no working functions first When on on who quarter customer coming with is the innings we really pushing down. the have to rate said, ICC, serving efficient base on operation, done dramatically in of to into not drive. where how the spot Dallas not it's to it

So, fast. a spot move like wait quickly. very truck until rebounds, weather market depends lot they'll things factors and that park happen and can just of their which on very It the

bottom But as as because it's being want efficient the and prepared and so on market that our can't efficient it. us, can opportunity So, be market capture we the the important with nothing presented we of of to control in can has back to that to do we always us – we front are to invoices to the what piece end buy line. only

Jared Shaw

that that so. not customers losing aren't interstate were to So, the customers making transition a I guess system. But on Triumph you're

Aaron Graft

variety of a That's month correct. customers reasons. Look, lose every we for

look chosen risen there ICC a the it have the more number. some I hasn't that, result more as significant to have but losing. adding and we're of we retaining been is have doubt that number than think are a transition, statistically I go at to to customers no elsewhere,

Jared Shaw

desire and out to that other overall of grow the that's understand looking the target? component say then, did And – commercial that treasury on you're And management. have deposit Okay, out that the investments as the you target if X.X% transition second well? the that the commercial case, happen base? the ROA funding ROA need to to component the you any do other base Was more to targets, Did reaching to build the okay.

Aaron Graft

to answer question the for the in everyone. So, I of the first deposit to because get that And to are yes that's is dollars – any close at way new funds, scale X%. think starting cost commercial incremental

If you're bringing in time deposits without your a commercial on relationship, pressure well, that certainly margins. is going to put

So, to we our don't want to depend on channel. be primary that channel

– the out in needs. serve do. we because which On this the going month. fielding this and phone you deposit the deposit who clients built to located new lean conversion robust we institution as clients market have all not commercial have geography few we and digital team calls side, last customers, needed communities are We've is in salespeople days historically the and we any And to base admirably, have we service now their the from never technology meet they the with things on now to a did and happened didn't Well, they our customer had five commercial spend offering. been have your conversion, our tools finance many

to quarter. So, you're deposits up going this show to see start those

be $X or to expensive we're going achieve have It's where to we we've that billion just believe, to funded here execute in X.X% on yeah, number with got And to assets from but a CDs. can't mix. hit for so, in to I be go ROA, assets positioned that, at $X journey think And it. I the billion a

Jared Shaw

on look at so, contributor? about or profitable at numbers, incrementally lot it, seeing a hockey into give you transition start to you clients it Okay, growth point to want growth profitable, those clients you the understand then lines TriumphPay, stick thanks. to growth the or year And then, finally more breakeven XXX details when around or a of some I me call just a the XXX along don't TriumphPay we talking but from do and due in is that in for being

Aaron Graft

Yeah.

of be it focused customers stick lot of hockey some a on. the larger that think So, I will likely most we attention have with our

will actually and model. amount And think system, play of and it first get the the and you'll complicated you'll see through when going with we than we're in it more how very, total the hockey correlated relative are testing of within all start paying here's to you'll a effect a very broker to see one these like payments of longer significant ratio through a quarter. the those ratio. which freight just lag another adoption of us. to – little what having transitioning I behalf in you we're know in paying What a because, is because, I that carriers words, the we're a universe our continue every the carriers analysis, receivable from QuickPay is QuickPay. takes a number factored clients out which other In better, the that, stick pure our closely So, of to for on it's Excel and to to does the disclosing XX-day realize, And adoption see see QuickPay – invoices portion system carriers is is you of that, these adopting the will flowing making. think always

as that quarter-over-quarter some far have we're ones So, in think of growth pipeline. large going and for lot and queue as in clients XX% I a the you. It the was number to we bread-crumb

employed up, go more will the to become net number see funds to channel and the you'll see TriumphPay as So, contributor. a go that start which up, relative you more meaningful

Jared Shaw

Great, thank you.

Operator

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

Steve Moss

Good morning.

Aaron Graft

Good morning.

Steve Moss

think basically about picking anticipate? quarter, guess, a growth we the cost you late on the one that I bit should staying given thing up reserve maybe little stable the for provisioned quarter or ratio the

Bryce Fowler

here. stable Bryce. pretty it Hi. This from I be is to would expect

measurable. is I it product to think Capital have Triumph a could up the today. but going in be wouldn't go coming mix expect there, little be we I what on have that similar bit, Business we to jump of to big If a

Steve Moss

helpful. a you that factor margin then, about looks I on levels, Still on gains? And versus some but it that's an this your And receivables a margin, up seeing terms extension is you yield X% was ago to came the quarter down are Okay, comes impact wondering, year talked margin. a like bit. Aaron, on the when of receivables? the little

Aaron Graft

No.

is not let say me You're The portfolio in contractual way. it or over XX turning another the seeing – days. just overall still

hasn't on yield payment shippers of in that certainly we've our which, There been this longer since on negotiate carriers, changed. with that affects So, are those, been course, going that's customers, terms business. but

clients, there's look a at couple be, if if take the Business more things and have as and Triumph become at who clients serve their yield started the play portfolios would some look factoring – grown first able unheard overall longer think a you which we just the in we've this we larger the on sophisticated business. now profile have Capital, single in digits, I you of was at to larger and when

more On basis, we of the those can other on us so monthly a receivables service hand, efficiently. significant a they're selling and scale

we to leveled field a number The bit. Number that be market. continue competitive very a is the just stay That's ahead. So, playing two invest why would one. to it's technology has

to X.XX% your you’re a X% or it seen X.X%. from you've so, call go X% invoice smallest purchased a discount And per just to customers

fact this of business, still when sample XX% you around hang growing come yields a two on factors. So, down. in do I'm actually just course, given the yields the those in of very that that, proud size,

you're the but and we I beyond of rest not dramatically and you're everyone, going that, slightly sizes all for, yield is utilization see although the think it are profile see, has clear has don't for the year, we're what starting increased to hoping What change. to let think better. I to see we snapped back it what starting average – be not invoice see the me slightly – to So,

it last hopeful that I as get the $X,XXX think this it into to we're we Now, at will to summer, spring, I the a – believe, don't unlikely back factors, come on later get we is variety due invoice year. will we of sizes more strongly. saw back plus point into the

point, in $X,XXX not watermarks get money year. $X,XXX to it invoice we of high this us, this business still at and between can last Now, appear average those back lot we sizes, to does that will of make but a

Steve Moss

very Okay, thank much. you helpful. That's

Operator

question Gary next go Instructions]. ahead. The Tenner [Operator from D.A. Please of comes Davidson.

Gary Tenner

morning, guys. Good Thanks.

Aaron Graft

Good morning.

Gary Tenner

clarification margin suggesting point the rates? spot X% for commentary. end year the X% in year of if a First, you of by your or no just pickup was Were full margin there on a the

Aaron Graft

year. I full think

Gary Tenner

yet of alluded to Okay, underlying higher kind you. Can for a as you seen sort early had second fourth we've and Aaron, are economic broader first of the that be issues but at in than prices transportation then, year. full about you in changes rates And a quarter it the indicative any spot sort preclude in talk just the slowdown? this weather Oil now some would we a of relates the end the higher? and of Thank bit, tail Any certainly quarter. first pickup of sort quarter. the Anything dynamics they quarter of not really were to rates, might than spot fact the that other in from that volumes? moving

Aaron Graft

a of Great. spend time lot thinking about And this, we Gary.

set So, got sure the make you've is thing to we've right. group comparison first got set – our to based on comparative is the that

had I don't spot year, issue in you last in year think to – think and not. with alone markets the inflation artificial in I'm the some I tariff due I'm I this. know looming China. Last fact,

freight market lot the to you nowhere So, to And, of go of go. is got it's of that going because pull like up course, lot spot pulled through a when a freight. that, through naturally

So, inflated we last were may artificially where have year. that

got of start this dramatic potential have is profitable not a some after been our weather for a they customers. pretty they're for the running there's And backhaul find make lot already the or weather believe money won't haul truck of drive that going there they – the a be they you've because the thin several to drop load. year, – won't any When concerned that they uncertainty. of disruptions still able just delay, just existing on them of will if they're to With a they're margins,

like seeing more So, of which XX to us this be like – not crystal we just at but It is away we're saw of It we're what months. really the we're feels that's growth those last something recession health indicative same there's the may our as going next what looks growth. like economists, – And in said, what be to the pace quite time. I a seeing, think, ball XXXX, not is, apart, the and are from XXXX and that I some overall economy than factors is as not at year. clear that's

Gary Tenner

good in it the Thank question, community that. last as right. for And to in growth quarter. the segment, banking All first growth the you then, relates

all of of Have You the going the about or into maybe business foot there? second growth on at slower the some talked quarter. pace commercial success it is the kind gas put because in business timing down guys finance that on your pipeline of just of you

Aaron Graft

they've partners. it of think in I easy be – performance group continues good our and for being A lot estate to with is it timing. built commercial it's a of and lot real deal to a reputation

And lot clients so, we're repeat treat want because very a to the we them be we would seeing developers become treated. way of successful

community pushing are you've discussion We growth. you I relationship have, but, growth with just got can't in our loan the in the yesterday, bank, bank, community team total to had growth, the like have for

sort to just customers as so, ourselves because one the And without growing to us without get a balances goal you out a deposit go attention have these paying going can't set and grow numbers side. on for we're loans relationship to the have whether with other we not of with

the building seeing slid more quarter think, so the in the a just much we the some business might whole, would that hoped I growth quarter you're I is happen on in for and quarter is second the first to just, second So, reason had us. stuff say, little

Gary Tenner

And driver particular segment, for outsized commercial that estate you've in you success in? there had real the is a

Aaron Graft

No. a We of do construction. lot don't

we're – some about doing multifamily industrial, talking office. you're So,

now of, we're multiple – who projects said we've with, before, are We customers us. they're to apply with ratio comfortable They're doing. deals have they a done who I as group comfortable with leverage the

like people the so, anything right the And things. right life, just in getting with it's connected doing it's

relationship a a And much type. as single so, is it product as it's

Gary Tenner

thank Great, you.

Operator

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

Aaron Graft

look We Thank you all speaking with for again forward us to soon. you joining today.

Operator

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

disconnect. You may now

Triumph Financial (TFIN) 18 Apr 192019 Q1 Earnings call transcript