TBK - Earnings call transcript Q4 2021 | Triumph Financial, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

00:05 Welcome to the Triumph Bancorp Incorporated Fourth Quarter 2021 Earnings Conference Call. My name is [Juan] [ph] and I will be coordinating your call today. [Operator Instructions] 00:22 I will now hand over to your host, Luke Wyse, Vice President of Investor Relations to begin with. Please Luke, go ahead.

Luke Wyse

00:32 Good morning. Bancorp XXXX to financial Triumph quarter our the full-year and results. to conference discuss call fourth Welcome

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

please of Harbor our presentation Safe call Vice our CEO Triumph's Todd Triumph statement are statement TriumphPay. and the this refer may including statement. Voss; on Safe you're our and have. and Slide you today's to All that to will Brenner, Graft; slide If our Geoff joined and our Harbor our www.triumphbancorp.com. logged Schreyer, to those I'd Aaron Chairman website by this at online, Officer, Harbor Capital; subject to time, Aaron? of presentation Chief during to Brad XX:XX Financial available made please comments For I'm our are XX:XX morning webcast, Safe phone, note to At on turn CEO, in X. available President by questions the joining Chief Business Officer; After like Lending happy Ritterbusch, Ed Aaron. we COO call any XX:XX over address the presentation, the that be

Aaron Graft

morning. Luke. you, Thank Good XX:XX

the that TriumphPay. reported we per XX:XX quarter, in income the you one of introduced which quarter. measure, Grant, to $X.XX Last quarter for item later have net quarter, call, to fourth remarkable discuss earned By drag Strategic diluted was share. accrue unusual $X.XX the we almost million the did a For cost We Equity our common a at metrics or will this of stockholders which XX.X matter this EPS. was any on I to

XXXX. approximately XX% approximately carriers. of compared That prior XX,XXX distinct invoices over represents X annual of on has or metric market During positive increase TriumphPay had paying our The dollar term Undoubtedly, volume. participants market XX Fourth carriers about XXX% XX% of volume billion. Slide quarter effect over run X. XXXX. quarter billion, number to fourth continues a for as the million TriumphPay’s of rate from of just increase processed more a see an strength important fourth the the the increase XX:XX processed use on QX X.X totaled to and quarter, was the number you XXX,XXX a distinct the is quarter quarter total payment can who platform. That payments XX:XX grow the long

As conforming A top our payee, company. a of either TriumphPay a growth, important factoring the transaction and completed first as XX, transaction broker a a either or TriumphPay or a payor, enabled we carrier freight payment multiple as shipper to conforming fully is January have thereafter. their a volume line fully between XX:XX enabled

Not all they quarter, making in queue. will As today, live the TriumphPay We more we of freight enabled companies integration five TriumphPay are these program. enabled factoring have have XXXX. factors in next XX XX:XX payments brokers, in our queue but of to for test two the be

live is business, our integration it but factoring As Business yet. in not has Capital, the own queue, to gone Triumph

of unique completed and cash be can We entire XX:XX What in expect TBC a process of to makes complete the into an automated presentment, XXXX. is TriumphPay that payment, half audit, first transaction environment. the the integration in conforming application

the the is manual; and years the at out the the development, pulling using today. as of a any Audit, total the in You store significant Creating accomplishment documents, can carriers, will to XX:XX engagement hundreds automated on apply using transaction years transaction. that brokers, take versus think of The between first making. been the conforming in and given paper years data. in has the the sides X, room bringing with you market, out is the accomplishment culmination the of Edison factors join next reflects disparate the One invoice transaction and beginning transformation difference digital fourth see can will and of checkbook we and learning ago, millions grocery moment to XX That when card integrations of tapping XX. XX:XX call. data product I this quarter, via a As ever on we is as that term platform software that the Audit structured this other rebrand the also this credit In ecosystem, you process to a of him the to this XX:XX XX:XX of artificial to of Mr. the added as machine and complexity Slide conforming three participants asked network Thomas points effect assembly requires forward. market. both phone us the the Watson application to given the of tens shippers. we hear intelligence, another view of would quarter, point and to TriumphPay of factors first HubTran TriumphPay going equivalent all transaction ingestion this This

also the customers continued of bringing goes life the We who to or move to brokers brokers Audit keep country count network who XX:XX the the our rolling. actual These TriumphPay XXX freight total their customers, are TriumphPay TriumphPay that Making freight also better of add are our truckers remember heart the should both. carriers. We to the network. to

over and Now new it day to a also million XX.X% annualized a how prior XXXX. to these quarter effort exceeded and quarter XX:XX of fourth X.X% approximately to XX:XX XXXX. Business to XX.X quarter. a strong network. for transportation XX% XX:XX XX,XXX the the XX:XX XXXX. XXXX. the was X.X for million increase the for $X,XXX with very we rate Triumph increase registered quarter. TriumphPay the Average pay is per has cannot the XX.X% the in with purchases ended over thing over XX,XXX register purchased volume carriers, than been it over invoices, the billion, XX.X% carrier increase total Triumph and Average purchases. quarter, In billion Capital of had have to over increase the Triumph over an were approximately receivable, QX invoices purchased Capital fourth Business added registered Business a results. invoice team's Capital, just X.XX in XX is billion higher prices of dollar increase over QX XX.X% we As a before, a a QX That's quarter carrier, quarter thing bringing emphasize of for the X.XX turning the said better achieve run a which remarkable a carriers, one I quarter, accounts just

this Our their to we and transportation half transportation outlook XXXX. TBC team standing well look through first and XX:XX the see Everything strong ovation is members performance for the invoice continue read year. prices in deserve The strength for demand an of extended in expect XXXX.

whatever rising, catching XX:XX say, for in we and they all others industry up of to be and XXXX, trucking, payments as be Capital all can strong around march network that our [hot] Some you, tailwinds and ubiquitous earnings calling becoming all as while economists sales XXXX don't in particularly Triumph XXXX of are Business are for for another in news [ph]. we caution year our the like the to midst we I Wages we normal, the some are will start long we area that TriumphPay, XXXX. the as are towards return technology of back good XX:XX know, and and to XX:XX of the are Like like available normalization tailwinds but believe urge to want new normal looks say half for hiring. In estimates. this that have should a to we

to than when to for XX% also facts, technical of TriumphPay Triumph be last call. to I need resources call, the above I significant accrual. is Capital due growth SEG expense million, and $XX thought growth any First, Business we we adjust last In from projections, light call to XX:XX expect stack. expectations I approximately shared for set investors. technology pressure and on hiring its experience this will excluding to in level expenses for invest XX:XX More need significant. earnings the am QX wage using estimate these expense the for Our

boosts many of Grant. it Second, near term, by in control. things that couple a higher base XX% be to every to always lifting Finally, be Despite of legacy will the It this boats, On the that numbers. our taxes our about per grab stretch, reminder, be investors We designed years non-interest our ambitious. exclusion very current volume real not profits will, a team on such decline metrics. expense first but turns will of seasonality to these out is past shareholders. XX:XX be at earnings our a two-thirds of company-wide the growth in heady been the our was seasonal and it ourselves threshold it than affect Grant members leading team X.X this would we fourth sheet our the much while key the SEG, XX.X value. Strategic of distribution. distribute On best see opportunity, or quarter, equity time a that delay cause to while is of timing XXXX balance we scope the million measures, TriumphPay we will efficiency will the a we designed fourth X-year line The to as in be our note, working The the finish surpassed in economic XX:XX middle of transportation we the believe in long the time as catalyst it for Equity that materially grant has a share for estimated has them. of X.X% a in and and incentive transportation incentivize quarter. growth. a Equity risk in fourth businesses, XX:XX have last significant through the did quarter as like a been XXXX during to XXXX, embrace we the was is that market minimum in not to earnings we all in of quarter of total overall participants per reduction to volume. because also that XX:XX that earnings is invest The in the best do then, extraordinary. XX:XX implementation prioritizing not end likely generational XX:XX an our the or market so item XX.X% million increase reminded reminder be first. the can, ready will plans years business this that implemented much XXXX strategic expense a would market in that atypical, to deemphasizing in one performance, even expense the a which of that volume revolutionize far XX:XX industry performance as timing ranged using what is welcome freight reduced the call, requiring in as the quarterly relative and excluding of tight XX:XX of predict it the what interest joining trigger our from invoice payments us we SEG we our is $X.XX. Strategic we any The could now, we to this compensation to results this quarter. the trucking market but they times unusual have are do and our the upside quarter's success to grow $XX short-term in view last recorded tide The growth. of second constituents as that this to share to there our accumulative reported as a as the in the if and things at a usually downside years, in and can to as program, and amount, additional efficiency When $XX will a enterprise We rising In will reinvesting we The the those Our the systems. as difficult are XX:XX of XXXX, on shares. ensure view we're in turning to determined in that term and fourth by intense grow result, we was reaching Net the opportunity heavily ways maintain focus radar as race shift, create The be

of estimate we accrue our do XXXX will available XX:XX the estimate With details each X-year If expense our quarter additional during expense compensation throughout We website. of for Further expense projections on over year, XX-K quarter X record the full call to internal our statement and be can record in or refresh XXXX year questions. an compensation of will our will XX:XX will this of proxy our the footnote not those change the goals. towards the during million each SEG. found that, turn to we equity we

Operator

line from now the [Operator first open. comes you. is Please from question And Thank Instructions] Gailey Brady, XX:XX Brady your KBW.

Brady Gailey

XX:XX Hey. morning, guys. Good Thank you.

EPS? reported on based adjusted So just on EPS sort question or one that any is of SEG, the just

Brad Voss

diluted It per Hi Brady, Brad. it's reported based share. on XX:XX fully earnings is

Brady Gailey

are [ph] – make had year that so, mean XX:XX clearly Yes, looks clearly so Okay. $X, [XXXX] you are like that. last you'll – almost you I

Brad Voss

XX:XX of the is Just the remind you, to program included that. cost in

So, we to get to the need about would $XX.XX cover to get program. cost to the of to $XX,

Brady Gailey

XX:XX Got it.

guys early longer-term XX like you're kind talked about basis points looking as the way an of know the about like still to right Aaron, Is just profitability to this of kind that you know, payments longer-term. continue build-out ultimate something thinking big we then a piece can this Okay. interchange speed on, update, XX of points. the you of company I that, platform, is maybe charge And target? guys I that that basis

Aaron Graft

market of The through, the both network fee is the fee fees syndication an Yes, think network subscription paid transactions sides. in the bucket you is. think of that on XX:XX And it. last are be given tied to complete lots those the TriumphPay I fee the fee quarter, into just is participate size you fee, ago. then is, We number the that fee. network XX:XX The putting where charged to we've on walked payee to TriumphPay party's receivables hold a There just platform, are graduated. the we of are includes as we constituent into parties any it sheet. side the XX:XX by the of fee appropriate that completed with the subscription of graduated who conforming conforming it the first happy the generated any receivables. balance associated we annual the volume, and saw, transaction network fee, as a subscription syndication And the is given in market. week the And It's the brings

of if aggregate achieve we the structure. that's all now, that's, rate items of believe above as blended we basis we look where different structure Brady, start it at greater likely we'll would And, comes the So, I end together of working inside run the those fee where points. or a you is point XX network we XX basis but where say XX:XX up, now all in those together, volume fees is

Brady Gailey

so understood its first basically the million I year. calculated you base, to, guidance right, the quarterly the in way quarter XX million about helpful. expense I XX:XX then, working end as of on up Okay. expense All And XX I the that's think

a So, business, big investing is I you increase there. guys in know which fairly wise. are the

in similar here, continue you amount As material we should XXXX? we have expense of this guys increases look to beyond years expect to what of from to a one, kind seeing

Aaron Graft

you you the XX:XX sort don't if run problem they will can of an the for level set a now at as of and of organic do dial you idea network expand ecosystem, constituents, go forever. solve It's level this this Brady, inevitably problems with resources. it requires of, a I additional excellence, going me. Network, XX:XX bring that And this strategy for would because solve unique on interesting a I which we don't on answer land is the Historically, into enterprise well behalf the year of say, as TriumphPay into open and it's your and you up driven that it growth. to one technology think this people to technical question we're to now, second

seeing I very a need to together what's three XX:XX So, make systems distance a if the of talent and as a given we is any sure think got engineer what inflationary expense – growth an likely you've market couple talent different is market, or potential in year, in this driving we all maintain you've would us got of technologist the technology of continue intersection thereafter. you're just is environment. to labor between it’s a things, tight – be or the that things than seller’s any and it those more competitor

think as be operating a where year Business and going XX:XX and technology the to I in such is point growth, that capacity continuing numbers before. be we're standout to as see efficiency create community the it Capital, capacity a just that well. And this can the its is exceptional topic really holding – last to on climbed no is I ever – Triumph roughly goes. The one’s year expenses bank, people TriumphPay you around in to climb and is as this spending will our out handle mountain which far would to was flat

all So, falls. that's that where expense

Brady Gailey

than towards that. a in sees I you I earn breakout the think a has able out a When earnings share Then, market higher see to going ultimately EPS power? just the it TPay think been materially last the do at couple as look a you me. you if like more about still feels XX:XX to for one in this able of back earnings, made Alright. Triumph earn some well to next being be I year, that $X you range, years, EPS to in one you're if mean, of noise lot mean, you $X $X.XX

Aaron Graft

the [ph] with XX:XX a a to. mean, extraordinary years So, bonus ROA] everyone one quarter I first that for we for I all, thought a get in of program and an was two Brady you, delivered no announced ago phone. could that on [X.XX% we mean, accrual

I so, did on I to a the you incubating if and by rest drag which that's TriumphPay you're And to a And normalize judging at that's that, XX:XX the say looking but we X.XX%, world, while earnings. don't of know, for that continue ROA breakout. an going is be would

take were close that If profitability to for we're but long-term would you I ROA, value. not for solving short-term we're here, a be X.X% you to out, think solving creating

you is bank going severely is, have use and what and market fact it were get them we’ve market The revenue that would doubt can that than on it's see give So, show rate Capital an or the Business after is to in I breakeven the we've to We've benefits I but fact a return income allow XXXX I and we're get I got at the And in net it while to discount revenue materially blessed equity, end do to there, for things bank contributor XX% stay not reinvesting where a million two one to that's and $XXX Triumph of do mean, in it off run to away wiser our the community is all contributing do your build of to out it all very to it built XX:XX environment you then it business, currently it’s segment we're constituents you will, of proud will we've at world the are do to reinvesting our the of. is the got when you're be say upfront looking difference same, the to So, XX:XX make to now, XX:XX and that TriumphPay this do answer XXXX to tangible that. that segments We've the bill engine called continuing see we're bottom meaningful to question growth when at banking of or doing on is for what the arrears it will better that price. than segments in running all the most and that its beyond, three know continue if to see which to and trying thing business. doing, it, in to invest start profitable but in the year. the journey. chosen first something it out. is that would that a extraordinary far rather the X-year said contributing that to in continues that being TriumphPay from common it's We're line. year TriumphPay course, short because continue and for the to of

Brady Gailey

XX:XX Got it. Thanks, Aaron.

Operator

you. Thank XX:XX

next line Piper now from is comes from Our question open. your Please Brad Milsaps Sandler. Brad,

Brad Milsaps

Hey, XX:XX morning. good

Aaron Graft

XX:XX Good morning, Brad.

Brad Milsaps

for dollars curious I XX:XX are clients? that that or down, taking uncovering maybe some it kind translating kind million where break about revenue $XX of just those sort more new talk as you kind of of translate? core XXXX expense fourth like quarter the these expenses. necessarily looks that technology you're Is questions. revenue XXXX, Can going? for And that back that is of needs on Hey, know guidance, don't to [indiscernible] some of spend, Aaron, – more my does annualized like million if thanks over you’ll $XX or you

Aaron Graft

Yeah. XX:XX

And broadly, growth Brenner of going in probably two that so take going then you this expense of which is Capital, speak there's and see where the buckets. don't Geoff with can you to in I to is your it's first Triumph Business TriumphPay? and kind So, year fall why and us,

Geoff Brenner

XX:XX Sure.

So, there's it. of two components

business. invoice on monthly We've able and good, unsustainable. completely And people is but closer to we're at we've been historically sounds running not growth metrics X, hire to best-in-class. which Triumph you purchases, have first manage X to ratios Currently, X and million with looked FTE to people. where in X XX:XX er it's that's par The of our really

So, catch is of up. a that human lot just

pretty capacity forecasting to and ratios, catch you have is, we'll people in up first rates, and across need mentioned quarter, fill in that's methods spend. significant part terms on place of based technology the applications, The departments. example Aaron right XX:XX multiple operations, in second For we know

We have technology a to creating for transportation the for portfolio, then larger plans portal spend, ambitious for that’s significant and as transportation and TBC, Triumph that's first be going a and well.

to for at spend and us. both areas So, is TBC going technology be human

Aaron Graft

Brad, XX:XX now the I’ll that's there, of let to to the Yeah, out of year, the what probably XX% things Triumph going end and spend in we've we're XX% the for growth to of phase, between the drivers about and remainder those that's are be the called expense the Ed Schreyer of expenses? speak thinking

Ed Schreyer

Yeah. XX:XX

So, Brad, Geoff almost answer to an what identical said.

So, and you're to look going at people technology.

progressing Ours is conforming conforming is foundation transaction building on strong we'll different we people The announced side, for little very developers are you're that a earlier. with that bring brokers that those only companies a that as additional on and integration. of appetite transaction and individual the working be on. and but code XX:XX so to things, it's takes not adding So, engineers those writing that factors doing a the developers in

world-class things in that can on investment we Again, unique that, buckets. technology those systems be XX:XX strong, at around payment to good stuff So, And to really actually same but just And won't involved have then to the So in the that all of different a to It's found what's upfront. be build takes moment it's network. is technology really us get multiple top people the for in a the need customized, and do again, they for it's and queue us parties people. with doing the because time. it. labor intensive

Brad Milsaps

see up And can you like segment quarter, revenues looks were, just how XXXX? at XX:XX curious more of the of kind – the thought it thing number kind with that then, in curious Okay, how we folks up seen And that great. volume, to you. actually build looking another how could building it on of data, at just [indiscernible] continue getting be of would process have fee are that the you network? Maybe but linked just a just timing TriumphPay, through, kind you through so, maybe Thank continuing year? to will slightly I talk some step

Aaron Graft

but for, year. through I the are It volume you're getting see things bulk now for going doing year, this in there materially Brad, but up mean, XX:XX build that legacy are of shows to the XXXX. will we built it growth this clients in are

the allowed uses in significantly fee we're people it to experience has it, it, revenue much we engaging because value of I easier you some with our see operating brings then based I'm because it bill us on but revenue a longer-term, was that previously, proposition. into that never will process and see XX:XX budget that and you As or the would follow upfront when hey, to a everyday if to answer who in been we upon it like XX:XX just it's their more and month the penetration same makes with – and much [mode] end getting may, using when every charge you we've you much the far us they us. easier who how process anyone much measure broker, use much used they to it try I X how would [ph] were create? we – wider gets the we you, growth, how between next start by working build year volume growth did it would and I So And the sales how stops you you're to based because so, Tier see a anyone the hey, And said to the year will build in it. measuring in you XXXX, more the integrations sure because this that do, by than, XXXX arrears, for is going shipper, with XXXX think at Because we factor say, going you're

Brad Milsaps

you that, XX now, is we, the [ph] I spill better feeling something of points, basis all more time] mid-teens, a XX Brady, are you quarter just not [but you last did mentioned And kind north I think thought going weighted it something of of on XX:XX in something north forward? out, Okay. to – about to hairs, but

Aaron Graft

will syndication upon XX:XX hard depend that's charging. That’s amount you’re the Well, the predict. of outlier fee it to

off then the We pay market, you and you getting their brokers broker to offer fee higher. on that tend be you're mid-teens. back blended if no almost behalf, do base even If into will the the in mean as would perhaps solution quick we want quick And a overall that, indicating factoring drives that XX:XX syndication the the pays, to believe to these industry. fee I be

and can And come know. we'll so, think not here take I see scale it's over in we off the before. together. syndications and they bit not like might push be mean, you in elements but the will because the wait all how timing real but basis We see we're answer a We we been points, is, done little know teams, a don't XX if at

And so, marks we're hash we think just of you the give we trying where could to land.

Brad Milsaps

maybe Got final it. question, kind helpful. XX:XX then from And just away factoring Very of business. the

there beyond an you [whole] of out like press could number the it's the Just out color any USPS? that you a big more been while. with It's hanging a and but you on and for to in litigation I know update the on you pretty just add kind [ph], color guys what curious put come are more in release? feel past, if you going felt

Aaron Graft

mean, system. you're I post States and office the United government, the the Yeah. legal XX:XX dealing with

everyone. only our we our if judicial a of be system this sincere process XX:XX further moves of we can update be update It is misdirected this you fast. lot beyond you of it we effect as three as – litigation more no means is go fast them this involved. completed all no really we know that a the We XXX% as will people the make of those that this resolute of as the belief to combined go changes, that. the in year, and have will that funds. can and And So, having continue there's hope material make that's recover and And to part go,

Brad Milsaps

Okay, XX:XX you, great. guys. Thank

Operator

you. Thank XX:XX

your Our Matt, next Please Matt line is Olney now Stephens. from from comes open. question

Matt Olney

fourth payments trying now or the in in TriumphPay, any what questions. near $XX appreciate more good Just Hey, out billion had still XXXX, for about? of fourth morning December thanks a of XX:XX think is Good there color us ramp of term, quarter, goal at thanks. last to on the to and taking think I recently? was a number for the we and the XX that billion in my by quarter that we're goal

Ed Schreyer

Matt, Hey, Ed. XX:XX this is

industry, growth clients, some annualized. in to then for XX:XX you XX, XX.X So, as if of if ran annualized want in, you growth So, mentioned is just that to the to know start XX it fourth was the approaching earlier, came own fourth big Aaron the for volume you wins a we the you billion had quarter, more month to go how quarter, giving the just again, could average and look about. us work just amount volume, and last December, that the talked in that quarter. of quarters We contribute and at of and fair payment that's it back we

reach getting volumes as we the in through look where before, say going mid-XXs, year. been what’s ourselves for right, us, at we but, should the those of year, had last the about doing thing what's As we when you that goals kind out in for approaching set pipeline, kind go we look maybe we hard of out of into numbers be, same are and billion the the there, to that annualized the aren’t XX at we've talked run is to

growth So, that expect type in that future. with of and immediate the

Aaron Graft

clarify, can at just QX, QX We – I if was to when, things rate. rate, this I Ed exactly it. billion run for said will just called require think can't to all exited the what billion you an Matt, that there, and shot to exited we you at XX $XX year. a $XX million and we XX:XX run saying, hit and different tell I us hit will get going We we're our but QX,

Matt Olney

seeing the year? on at today any more that is some you're could something of the of that. the the for you that rising mentioned conversion customers over topic? tide Thanks strong at lifts was Aaron, they slowed or all Okay. commentary looking analogy you your concerned industry something XX:XX And some in then, point you're used tailwinds remarks prepared Just boats, see that has for TPay, this

Aaron Graft

XX:XX Yeah.

businesses they're earning still for in vision to than which great is said, do their we not full beating want business to ROE mess still XX:XX we've have to we're time high that earned, ever have better. change that we’re higher only any businesses the we a anything notwithstanding say, pipeline. a So, right? benchmarks, forward being That ROE, resistant find be a this a very we invest that in to now. the Most be up are, going industry to earning hey, the fact let's gosh, It's a

we're XX:XX ever thing just second which they're the Business mean, of better necessarily surge newer went I we above way same Capital capital integrate, specifically So, now capacity this of a that doing pointing brokers for ever done we well the Triumph it view technology to much the craziest the that. on has stretched. as is to freight in life, to freight the as it need – We're is, industry we've all than The cost holding and they're has doing. in with don't what I right through its seen. so history, of was headwind the that earning whom constituents, out

starts and – of – thousands conforming who tens be across everybody are follow] to companies month efficiency been the to getting therefore, will at environment And having headwinds network, fast and handle and participating a because short cycle calls have of dropped for in scrambling second you to to I show those and we’re over hard companies out now. because the cost believe so, into people the get going come an get the of their up that right are into already XX:XX there's large – what where XX:XX integrate. industry to them. they come the and be to is savings large we're fighting really and just across sales pointing colleagues kind look like doing tremendous phone fight there transactions now So, into [me tech not to and for this to to a in that very talent, have [ph] we are hard where integrate are get

and then, work and doing integrations we'll calling. your should Because but around money, was missed you've when making well, we this be trucking you you come, in think and headwinds come we aren’t the the some still If get it time exceptionally faster. they'll think

Matt Olney

you. Great okay. Thank Yeah, points. XX:XX

Operator

Thank XX:XX you.

next Riley Our Steve comes from is from Securities. Mr. Steve, your question line open. B. now Moss

Steve Moss

does [indiscernible] look brokers, XX:XX terms of kind next like of over here, on up pipeline just recall maybe half ads in second the Tier going some Maybe here X in the just any may X how feel curious I be following for clients live if Good of on the the I morning. there’s months or that XXXX?

Aaron Graft

you a live is just can quarter always X Yes, X a It's use got because who freight to to let's especially we've change to game XX:XX Tier broker make set, tell when them, dangerous exact X things but level brokers for an Tier go payments. going TriumphPay

have another audit their TriumphPay for of part We who audit used X functionality.

that XX:XX of will those we throughout the Tier expect, think brokers XX those I XX we integrate in So, the fully happen brokers. let think first X we of year. but will X of don't have with XXXX. We year or to in expect say largest any do we it quarter, the way, freight fully integration some level me happen freight multiple the will Tier

payment – exactly, number much those will clarity. exceed that than we year. run the of every X probably we've see billion Xs to quarters as between and this we rate through continue this to said will quarter follow, give we year think to and Tier in integrations the say, happen $XX believe you'll XX:XX X quarters it and when As impossible to of be it's for happen us timing Other you the will the would

Steve Moss

today, of maybe That's – sequential that just will, if factoring increase, give but still pricing sequential quarter color our if wondering you – kind remains me, disruptions curious prices a then any you just And say the drive quarter seasonally of XX:XX invoice quite Obviously, side first quarter the probably and appear chain Okay. strong, supply is And which on excuse prices weak, it business. helpful. level I if significant, increase? helps there? where that assume can the invoice a

Geoff Brenner

Look, XX in those we're days XX:XX into thus working Steve. working the far very And average we This strong, year, but QX. have as was invoice Yes, remains do the days. January, size XX strong data as is on Geoff. into it

the we if industry, track seeing little drive less Non-contract a just a holding are truckers strong, January average you produce XX:XX the why. with is weather a daily a bit million we'd January. average was There's purchases decline little number price is in but down, line We there's And down there's in that in expect as issues, expectations. reasons, seasonal seeing utilization slows just of it are invoice but bit reasons

Aaron Graft

Yeah. XX:XX

think about would think In very it's fact, short full-year because what cautious forward I X,XXX for a extrapolate don't I the seen. for the is highest transportation the the that we've like, sample using but is to I number period, looks full actual be ever is just engaged. which invoice, market

a pass that the something and it's is in know good the for think drivers. the It's business. good X,XXX And it's goods is, industry, that in the a but are we're obviously in period long but invoice over range but time mean, never frankly, think And kind shipping appears those small know our inflationary this shipping trucks in who a healthy and that XX:XX above that's for X-week like don't large blended a is period, in afford I've profitable parked, it that you're spot the transportation down, along. for to frankly, it weakening, I ecosystem. what something driver seen a entire showing very really XX:XX hopefully seen interstate I commerce player just $X,XXX oil. don't I in invoices It is lot a it's XX:XX which predictable. are does for I've never for January. of that not I short-term, market if good especially it's set. seeing appear Geoff a ever, we're are of market, So, people up as said, I $XXX trucking. through that's sample the We growth we're utilization makes in can seeing totally think $X,XXX of and very was

Steve Moss

Thank All very you Appreciate XX:XX right. color. all much.

Operator

open. next And from you. Joe, Please the your Raymond is from comes Thank line question James. XX:XX now [indiscernible]

Unidentified Analyst

guys you a trucker you're at but people I if utilization taking just there. to market like look that the looks Hi really first concern a know you share. XX:XX of are the to few do you quarter, And in quarters, factoring of said the TriumphPay? respect you And that guess, it is kind when past expect with experiencing slow with that that companies is I some slow-down down?

Aaron Graft

we're XX:XX of what Well, so be let's talking about. precise

I company think any by First threatened factoring is TriumphPay. don't of all,

services, so And bulk live already of the of TriumphPay XX the who in our doing its end, who now is factoring, are we're which has it's All to would we TriumphPay doing fact use more including that larger Capital, especially of anyone. not in we going is market is to client the are a mean, industry, companies call larger portfolio companies compete while does have in we if portfolio, Business factoring Triumph lot efficient. excluding and to were clients, share service fully X small nearly a at respect In bankable With conforming I making but taking happen of transactions. you provider end base. that look XX:XX receivables the factoring the most payments the

as these I most as companies. when profile, majority treated the a it are compete we volume too about for more factoring large priced, independent of mean, that wouldn't factoring it's I from discipline, yield so, mean, currently like have thinly we we it almost argue the them. in Capital, clients, too be the for. of Business industry ABL It's than of most most ABL of could would factoring clients think exists And a but and Light. those Triumph you XX:XX

be continue believe and less do become will Business is independent constituents, So, TriumphPay growing. Capital Triumph our competition think who going the to to we Business grow XX:XX need the Triumph that. I with will to are less. trucking Capital We companies because factoring

growing a the of growing the not thing, market not companies from should the market. miss in the who over road end is industry a XX:XX happens the top will The at some on factoring to as of market, investors the their to a their you industry where competitor things factoring we'll for. a them of help factoring in the this, – speak play are we think they to other engagement to And share working Brokered customers. Capital think we in say away I bulk of could prototype XX:XX we’d they kind who do, one are road does in last what there static. that more see get Business probably plays year, we over is growth – opinion, think formidable Freight whole Freight direct as us than their intend also as more So, taking Triumph roll-out market shipper I We with I trucking Brokered can't market. we the enterprise that and the every

where to billion to those exclusive ultimately TriumphPay, freight very in it growth that wanted not brokers, rides shipper years. So, that thing that's the get the matters we growth – growth are. growth we get, [whole pie] feel a good where next is from that's which share in and and XXX that's we the up taking the to payments for or a market, payment really in XX:XX – pie, is we us, larger is but if frankly And the growing of brokered [ph] for investor spot. really most in of that's TriumphPay a the like again, we're really both it viewpoint, in address we're the the And factoring market just few companies good rails

Unidentified Analyst

months that any Got annualized and has you the there just few payments your XX:XX I again thought profitable, million XXX that then of on this sense. And network, in payment target? makes all reach XXXX will believe at some process you expect previously changed XXXX, the it of it, in – kind focusing point past, become volume about stated then is

Aaron Graft

let's we deck, in change the only and The completed data what ground, us, deal, go transaction. process we're for put just you the happened. further put the the thought We before. and doing done have forward raw really It's in because a XX:XX XX:XX been the leap is That's a hasn't a conforming slide into a that's never of big that right. the stake screenshot

So, built just as the going hundreds all the we make able long-term we in, ubiquitous, So, to revenue to change, we you not conforming that transactions is, millions, a market, of the of take has – pay card, your be a transaction XX:XX know, the and see this convenience and building to hundred, because now that dollar multiple do since addressed enterprise carry when hundreds XX:XX still we actually in that's conforming business walk the build technology What valuation. every to the change, you you visa last just time to with we're target it card. work. store swipe we way still the you – in you addressable ability how you your but has is billion My we the opportunity itself do is, a make they're millions for to do see to in only XX:XX as That need business to to get any win XX% competitors. and and market demonstrate going happen margins. need fast, million make everyone the would scale between we the to that's this in to only excellent a us, XX%, That's hire we And is whole. unchanged. be and the year need talent. maintain go to to It's the to we be at people need trying be a at is so know The of a I distance tech be long-term the to we more I just talent to race, thing profitability, just spend, need payments this don't so more when or the time need hire some efficiency hire trying changed. value is operating door operating XX to we to sure view to I else right,

to the journey. expense in wanted we why reset of year, in just that's our that's guidance it's So, not part for this perpetuity, this

Unidentified Analyst

XX:XX Got it.

so. a target by that out So, it pushed sounds or maybe profitability the quarter get like

Aaron Graft

when a for network, doing profitability good targets, precision. yes, payments trying to a us of quarter with we're build mean, what I and we're level doing Yes, to XX:XX enough you're on call to not miss it that

the we if your sorted right, term then everyone be value going number get long is off We're else use definitely to we quarter interested proposition way Whatever is, in so. of a having or yes. get out. this and more that So, could everything

Unidentified Analyst

could [TBC] XX:XX one payments just the No, I [indiscernible]. If in to guess, was queue the in currently more. sneak network. join I [ph]

network, So, now live you live done to the initial I was there the wondering Triumph and [ph] then you have for during build step on anything a you] when do you expect back know take would the [is basis, a Business Capital on test would network? with go differently also, And payments out?

Aaron Graft

whole to would telling that all on to a world with his the all I us, think our just team be hard they we have remarkable. – HubTran I the XX:XX as is we to then product that functional really in and doing year. but together XX:XX would I you question HubTran get all that that's, then, mean, try name, And audit talented an had to and about people. I we to know [Indiscernible] done turning you steal you to my anything our some went in but exceptional we you got is keep but dead-ends, a team, were there would loop had done and X-months. is we mean, have just XX:XX I should the of open now, are from into to network. who would out differently? all X organization he and then X-months, existing them And had what fully understand, saved call closed it we them, have known in June That's people payments what through integrate and last team TriumphPay have team some great

anyone unusual. there that, back are in corrected would technology who gone not in then tell that differently. XX:XX know that you but would do would get Business lives world And first anything don't of margins things We've differently. the as it probably Triumph to that So, we some and done the the So, fast, a it I queue already Capital, there's reasons. done many highly was have we as far of couple and that's

platform. runs off wanted the to live All use done the decided happens factoring management factoring company is of before. we existed, Business who let to of integrate me custom for of self-serving the what is that to go The carrier the TriumphPay while, It's Triumph with TriumphPay we've has and not its factoring it building is not that's friction to get XX:XX It for goal so call and make process. shelf, Business been proprietary on we sure The technological all, be just to FMS, factoring goal. Capital so systems, First integration a an company that most said back dominant the easier integration what in that's we've go involved to companies to Capital, that reduce is third ever lift Triumph the we parties. payment does. be only which live to because easier own goal everyone

as few off number should we were small, several first expect the away transaction is these and with couple to throughout will first have to the coming Capital see The them. will a of companies that so couple of answer. brokers and each or weeks also long of done. report freight answer live continue And be we the That's KPI in go who So more live. the exponential more other denominator there's short start a see year. of but factoring we you'll So and grow each you in to go a because need to in – quarter quarter, And that, then conforming month that we quarters growth live XX:XX pretty is, us a We're from think course, XXXX. the we're working Triumph Business

Unidentified Analyst

it. a makes That sense quarter. congrats Got on XX:XX and good

Aaron Graft

you. Thank XX:XX

Operator

The Shaw Please open. you. line from from Securities. Wells now Jared, next Jared is your question Thank XX:XX comes Fargo

Jared Shaw

what one when guess, do of, the on how morning. people Good hiring do in that question guys. many talking FTEs, looking hiring, think at Hey just based about XX:XX you like what actually broad I were you're you you're about talking you goal? need terms tech when build-out, the

Aaron Graft

tech people not space, sit to hiring, who adding variety UX pool is who I engineers, experience engineering user data the think got systems we're from I I to some XX between Yes, in to of are XX within different we of XX:XX places roles people the need in a XX We've more whole go integrations. help think to XX:XX to technologists, and XX faster some on science us organization people. mean

Jared Shaw

And XX:XX the people plus just would TBC, that for the then capacity be of build-out? then need sort you

Aaron Graft

Correct. XX:XX

Jared Shaw

then versus of to What's the do out, at Okay. providers? And to when the broader be purely know think, XX:XX of tech versus either and fintechs sort is tech vision what with how you of, you in-house much or bring you look going want and outsource? in develop tech, you large or what the house that partnering spend, software providers

Aaron Graft

you that what on grants would of it. firm protected and able recreate I think want someone So, like were We a lives do this, as worried doing. you to property. it. well internal. use hire and Golden be about come we to we team, Like, hiring is to to using and being understand is what Goose, all if our we you're I be third XX:XX we're say equity understand to role parties with what you our should protect SEG just help for If you projects, rifle build extremely the talent spend incentivized intellectual Golden should as they're would that optimize really shop the here. They're build you outsiders to something while in, a consultants Yes, of XX% XX:XX the need as Goose then don't consultant

all this of the Ecosystem. inside Triumph So, lives most

Jared Shaw

how sheet And an Okay. shifting balance a XX:XX describe everything in else grows, give risk then credit little past the you partnership, want talked less as of in light expectation for think sheet actual risk? or thoughts update actual that's the your using that the for the do partners saw to help accelerate of your you rates desire balance going guess I with we go deposits higher, in to hold especially, and bring to quarter fund reduction bit, that you’ve you a this ultimately on to of about partnering to the in can either

Aaron Graft

interesting and know the tech great It's first to sell-off thing XX:XX in it. with watch question it's a you been us the pull

the So, way if lot I guess to our Triumph the that being would that That company, positioned. said, we which convincing year, end, sheet because would a points balance we is have say will fed done as the job is. it our market of basis we XXX this of have than future money a up more is otherwise make the tech

they these to they're here are TriumphPay like generated ecosystem. being the you your work we're think factoring we they've so tech sheet pays, are been XX:XX go would is do them] So, That long us to as inevitably assets balance by will [offer say, Triumph sheet if that extent environment as on Stuffing run no they We with In TriumphPay lighter balance see don't in or place model, And them to start network? the a balance to will. sheet rush industry Business not have go to to broker to We're our hold we because be place, think first being the factoring the generated and integrated balance the capacity those sheet the they Bancorp growing Capital on the XX:XX we sheet, plan. payments already the perhaps for who side network the into much quick rate – inconsistent for you'll verified effective, we we'll Network from payee and with themselves, the go. the the to going cannot of back get take the makes And the the are the Triumph more balance fear think long-term with receivables those, to is money. for company XX:XX the for rising industry light. into the I as be the over to said, by network. our

inside total funding bank is, point benefit why to And that's basis healthy. and XX:XX grow Like of pretty the we our stress. is funds assets frankly a you've don't of XX seen that have not so, cost

other not network yea overnight, grow. So, the March industry we opportunities And capital this tech It's don't to streamlined more we're going party see but balance heavy payments set I sheet to our a you'll delivering product disappear to than be factoring a sheet, providers. to in been. back more think ever should syndication balance into we've long-term third the

Jared Shaw

beta once That's And up, what's good XX:XX your expectation see rates Okay. deposit just on for color. we base? on deposits, guess your go I

Brad Voss

least right My at pretty it's at first. low now XX:XX that projection working is

looks that’s like move the rising atypical with rate As amount general the situation we we're into that of liquidity a environment, in banking pretty system what this, has. in the

[indiscernible] are in be to rush raise rates. Our with think to our deposit going competitors liquidity. ones I of to all first start any be us don't the to

Longer to fairly term, think I be it going So, be remains low. early it's to on, same.

Aaron Graft

growth we'll the of is of TriumphPay. millions payment, of have the XX:XX would because rising year, number depending difference XX I flow of to different That behalf it's the bearing done. the a close And a party you when flow lag part beta from just deposit point out, other in hundreds TriumphPay, the how to generate actually of end it's making are for non-interest to on payment as timing a At a between I variety whom XX:XX overlook of which the of X-day scale, on think don't Jared X-day making deposits. is, things. functionally invoice bearing it’s million that we this is, environment know non-interest The the rate we in will no

bank a not So, in should TriumphPay bank, these of payments. one flow handling all you of bank, reasons because it’s value live if grows, is we on create the as the TriumphPay in typical the believe a community a but

Jared Shaw

you. XX:XX Great. Thank

Todd Ritterbusch

that the bit that noted in quarter, you mortgage short-term fourth deposit in down very this balances to One balances, decline was we other about Jared, mortgage completely warehouse the expect Ritterbusch. attributable point Todd came XX:XX actually warehouse balances, but here a overall. are and so little a rebound bearing forth, growth and year this deposits are to will expecting non-interest always P&I are to servicing related we balances escrow balances those and year, and grow so, be to continued continue deposit and to this from those is

Jared Shaw

XX:XX Okay. Thanks a lot.

Operator

XX:XX Thank you.

line Davidson. from from Our next question Gary Gary, comes now open. is Please, Tenner your D.A.

Gary Tenner

XX:XX Thanks. morning. Good

question kind growing the obviously of TBC, bulk that to which of gets do kind of, a etcetera? near externally, there how kind spot rates, you're presumably on given fronts, invoice those manage you mean, you obviously at as I TBC, that company, that and of spend we're attention on spend very do undertaking? kind relates spend TriumphPay or it the on how balance of profitable peak the Just but When market the prices, normalizes

Geoff Brenner

Yes. is Hey, Geoff. XX:XX this

year. I taken more Those actual when think XX% we've an XX%. the which points amount. had The got organization. you independent pressure what number last of on real are consider That's volumetric than normalize, is, we by to of rate clients are rates of on still QX the invoices, up of

lot with but So, manage don't it's don't we as day. happens at those I look regardless just think X right hire XX:XX XX,XXX of we to we now up average the what to need, pacing I invoice have the efficient possibly those I need will volume just mean, can. FTE invoices, So as want we a we sheer pressure. be clients which catch to volume a invoices with about I is, the to we've reality service And to taken. is sizes, now are have and

Gary Tenner

quarter, then over FTE first you for here participants are that expand does as efficiency on of then Business in – onboarding time, thanks the Triumph kind on And XX:XX a – talked that. of And Capital platform Network? on the about the active basis more per the that being does TBC, or the the just TriumphPay platform, that overall given use capacity TriumphPay

Geoff Brenner

that we're have our not Absolutely. of business that but at there's to understand yet, efficiencies when seize. look We'll to also is look yes, impact implemented there transaction, of And conforming least absolutely non-conforming. period we at I for a the mean, XX:XX how percentage the it of some you manage we'll time works.

them one on look for those for course, blend efficiencies takes participants but us short I as we’ll TriumphPay things yeah, answer two to the sure. to in those of being of the is, So, mean, together, more flow TBC network,

Aaron Graft

$X,XXX factoring [ph]. you what at by next internally I up some payments to of have the point up ubiquitous, time, Gary, be payments is go in factors and transactions out that very no and and has going large manual company through for made in where to exceedingly transactions clients, of mean, have payments or of large I you XX:XX and what has processes. faster, least point just invoice XX%, get conforming to with network, there going other X,XXX a to the process the to these is, freight giving pick the brokered which a the chance this [Castle] alluded that your the large to tool network. FTE on a a the doesn't that less manually. are because to until ratio right, difficult, to, which manual end from company transaction payments, have them freight with be we're two trying had to all when conforming real team amount invoices, what the subset be human for of pushing in But mean is [indiscernible] at where referred is of reduces brokers And staying outside season you're network done that XX% more to are up taking a figure, very across it's any factoring experience that to who intervention the XX:XX has as, in said, Geoff time. years, do for crossed a broker more I Geoff cash happens, for conforming engage you that And you staffing very a done tremendous application materially

not yet. did approach everyone change someday interim my this, XX:XX during Everyone, industry of, but if gosh is may the world. as it the attention it everyone factoring period, we would this, there's and so, oh And doing the do

probably companies factors same staff have, it's very it’s but will have behind. to at are you're not as happening when where going goes transaction, a and you you're format get payments, I that pipeline, away to how away, it. are cross at happy some the that you come to conforming and are – to expected get to get moment to maybe aren't allowing that at when grocery paid, it It's the they conforming in starting you really look market XXXX coming surprise And their much able to that on completes more And what them to XXXX, year but we of and XX:XX in their what's transaction transition if we factoring left will need stores the flowing transaction. at of transactions conforming XXX to through reduce why this ultimately integrating our crossed counts, the it's conforming much point, get through not to, years grow through which like hope currently as until does. to expect done most so share. [ph] that or – are my early dial network, that you number checks change growing when inefficient seeing so don't once store is materially how is, in anymore. crossing on over And XXXX, out you XXXX it happens they point I and will [castle] billion not of not in to conforming staffing some a or to remember take because they of So, payments in even want staffing mom know pulling volume charge where two that of are is. point, a we you take a having out able be coming XX:XX didn't I are her they're on totally a being that transactions multiple close volume inevitably, they're they okay, happening, And data transactions to which to the Why in back we you're so, can to board, my and even the don't reduce form going say, volume grocery But checks, reason with suspect structured they checkbook. the through XX:XX

use for involved. believe ultimately to think Now, good a and much more this payments and what industry happens efficient so we no be going because to it's we network it's that one does that's to everyone

Gary Tenner

XX:XX Thanks. Great color.

Operator

any no have [Operator to XX:XX for Instructions] I over final questions. Thank you. We currently Aaron hand further back remarks. will

Aaron Graft

a Thank today. was quarter. you for remarkable all joining again, I XX:XX this us will say

of world, COVID know there problems there lot also are the people. battling problems the there’s in that people supply out is lot still a on a of hard and chain We out that

are as of much one. trying we so, for and Have care so, as Triumph but be time do your you thank take a And helping involved great we until in that, again, can speak today. to attention yourself and

Operator

today's so XX:XX Thank call. joining. much This you concludes for

disconnect may your You now lines.

Triumph Financial (TFIN) 21 Jan 222021 Q4 Earnings call transcript