Triumph Financial (TFIN) 18 Apr 242024 Q1 Earnings call transcript

Company Profile

Participants

Luke Wyse	executive
Aaron Graft	executive
Joseph Yanchunis	analyst
Melissa Forman	executive
Tom Wendler	analyst
Todd Ritterbusch	executive
Timothy Switzer	analyst
Harold Goetsch	analyst
Tim Valdez	executive
William Voss	executive
Frank Schiraldi	analyst
Gary Tenner	analyst

Call transcript

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Luke Wyse

Good morning. It's 9:30 in Dallas.

So let's get started. We know you likely have numerous demands vying for your attention during this busy time of the quarter.

So we'd like to open by thanking you for your interest in Triumph Financial and for joining us this morning to discuss our first quarter results.

to get let's that, business. With and evening Aaron's the future lot, prudent about a results letter shareholder and through create last quarter's to the both see today. covered opportunities investments timely value we closing, excited the but his freight we about we the long-term by Reiterating soft impacted market, see. momentum are

published quarterly will of basis form letter. last letter That today. referenced As our and evening, the our we shareholder our results call quarterly

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

letter are evening. today's published made during For to subject comments last harbor please details, to shareholder the All call refer safe safe harbor that statement. our statement in

turn to Q&A. off I'd call that, for With kick Aaron? the to to welcome our a like and over Aaron

Aaron Graft

good everyone. it us. Luke, to Thanks, owe opening. for give long wrote you I such joining I to Since a morning, I like a short and letter, feel Thank you

just have you. point out few So I things a to for

continues. as First, as they're going pressure were historically, this been and our remain under freight weaker earnings to than they've recession long

memory. in spite We freight this weakest being, Second, time well-known that my on but there not us we be the network. ground may it. to noise more absolute proactively bad quarter, thing. credit the increased all quarter. welcomed an the of And TriumphPay are truckload in noise finally, through but was credit in of A took quarter a for was a in for volumes managing We names basis the headwind

the map this hopefully think and revenue some I opportunity, in puts included writing for it and the what investors years. have letter. in finally, we value into several market transaction find size believed dimensions I and And will the It value

lot growth front us. in We have of of a

turn the questions. call point, over for this at let's So

Operator

question come of Raymond first will Our from Yanchunis James. [Operator Instructions] Joe

Joseph Yanchunis

state in in for referenced touching year-end. of letter, you XX% the confidence your your and by full, shareholder TPay pipeline freight So you TPay was brokered

Given incremental payment to currently year? the that how over balance come backdrop, color on contracted the of you some can much provide volume online

Melissa Forman

would Yes. pipeline looking of audit revenue. tell volume, we're that's creates the at right, payment I the And that's and to important is the volume what's what both in that's what you that right, terms nonpayment transaction, volume. network Joe, most because and drive

adding. of in of give to all you is we billion into to see of and payment we we'll $X $XX think So additional billion audit a network. the what that XXXX volume be attributed we'll but a to pipeline the look volume, combination have be of will volume that's which And

Joseph Yanchunis

a appreciate It Apex like network. that. And sticking with winning the seems I deal TPay, the business. for on kind congrats of big

if equal, be and implications the else transactions more what broker conforming would today, kind financial all all what contracted for would be of factoring level network? And So volume the a network that? on of the the of

Aaron Graft

you're problem factor math If broker taking network, is [ or factor of then freight $XXX for via would out the question. exist solving purchased statistically from billion of of and because every XX% then that's transacted and letter that the on on in were we average, broker amount then take every the the that, a that great ]. and generally broker So that there call the be freight

Okay.

$X year, XX of billion, years an first we entire took over months. couple you got remember, and the course conforming come the If ever transaction, just to us call transaction. we a since we've a And it ago, network of did to

the this remember $X in this ever freight, we quarter. in have single might quarter, billion quarter did I noticed weakest in You that

get But if roughly use that $XX you quarters. -- XX to X, and of the additionally billion, was get be if of it's by XX% shippers math but opportunity $XX So added if that you that quarter you to to billion, best was freight. want some And $XX would $XXX equation, opportunity. total you about There to over billion into the beyond the just prior billion. that would brokered I a divide be think growth you talk XX% addressable

go think billion average that divide you So roughly invoice had you're then the is we you of would would talking about monetize now, reengineer transaction if because their the is we each where the able be near pricing of X,XXX, would The auto purchasing, the economic -- implications back individual amount the that's would $XX use who network answer and constituents about by the would huge. how instant up and be network volume, XXX% cash amount offices. near Well, the XXX% entirely application, would adoption. to of

exists. So market. the quarter currently $X that's the a That's total it opportunity now. right as We're billion at

lot of a in growth tells front of that so And opportunity us. that there's you

Joseph Yanchunis

referring come actually what was is online. to I contracted more currently to Okay.

$X So up just the if other $XX on assume systems. all Apex additional business -- you the currently to billion fully running live billion that and of is the and volume is

wasn't I entire addressable market. the talking about Sorry,

Aaron Graft

I'm sorry. I missed.

we I think do be math for that can time right make you some now, real it to live, -- would assumptions.

are the all Apex of added coming the in just pay, factors, mean, I see give it the player X because you a to the brokers industry, growth. all is grow. on so we and the can't material platform to going quarter-over-quarter that top You're of I factor,

doesn't again, year. That I'm and stick it. just the that we up you beyond. market that my revenue I'll people to So shows next with year this revenue giving adding up and is what answer. show whole And keep

can much at as as really, time. that's give this color you So I Joe,

Operator

be Wendler from Thomas Stephens. next question will Our of

Tom Wendler

chain could looking for growth given Just if what headwinds, there continue. industry be financing should some clients we expecting the is supply on? industry lean Just color see we pressures around something for

Aaron Graft

agree would even be not are and low the with only don't their make question as who no They're possible. the stress. seeing stress, would is statement, There's as right? and they're fall, feeling people I that feeling this they freight shippers, to contract cost that rates everybody the pushing Arguably, know

people smart these But Now can but still that pushing term. and they're to moment, not the term just of also they I pushing think what money. in for think about term-ism. we can we the to be who long They're long negotiate going what there's near are get think that some -- save

got so fall somewhere. And that's to

Triumph it. it. are brokers freight it. feeling Factors feeling is so feeling are it. And Carriers are feeling

inject letter I a for can't that you discussions. lot factoring inbound for standard the about doing us that people tried can't requests would you are we be to into this balance we the like us each can who money this and ways, And it. chain for into longer all you no money free, independent, sheet And say for of time of provide or a liquidity. you I lay pays is we as shippers we think different of of how I would tell supply grow. where in much in get it'll step or But to world chain liquidity finance the all for add us value that illustrated is individualized those to options flow. there I extended and that whether for to letter help will it in we transactional exactly tell value more into out to liquidity freight brokers. different mean, use our to

opportunity. it's think Absolutely. I an So

Tom Wendler

you as are provisioning your And was pretty production? you growth saw And you me in thinking quarter moving new in forward? this comments, bad. around then in some how then Can growth construction said all color give strong We C&D. the some about

Todd Ritterbusch

was that to that returns, long-term C&D Yes. saw so one relationship. a and terrific related risk-adjusted They It's The to growth opportunity an we we came you with have. jumped relationship us offered at great that in that opportunity. relationship. It's a

broadly, of going existing we're be construction we quarter. what first about More and in It's you will smaller opportunities with probably are selective. those be and to clients saw to when that sorts much than the be think going development,

Operator

be will Switzer of from question Tim next KBW. Our

Timothy Switzer

to release long as term. about to Aaron, the in earnings over where try outlining And revenue is Triumph we the the The potentially historically, great, that, of $X press billion for you're implication path long-term over think TPay. talked long we And that margin ROE, margin have kind term? ROA XX% overall guys you a for maybe billion profile $X the the on like of over about assume what's EBITDA could like there? What's

Aaron Graft

generally the know Yes. That's at in That's tremendous people now. other to networks table achieve back to a margins demonstrate the we're the than between although wanting most I've transportation, that aren't are EBITDA true would ultimately tackle and lines. other in network that financial you that, But this there sure we would me than right settles think like can say look, to there's I go -- I'm that question. business -- frankly just XX% a no industry -- margin. higher we we lot that historically transportation said in exists somewhere one EBITDA of is in I building. the there is and -- XX% what let's

next open level day can that level, they to on here's we when factor balance is load which broker and on compete paid all say what -- We carrier in it can sheet. can at sheet advantage to belong sheet the discussion. balance level, of to their laid doors ways spins other value touch out come because to with in sky. we're recover grow to the vendor goes we places, were when the cover level, their that to It the now that the we fintech We're the carrier going revenue a at big that that to at our not Now do at we the no for our do A the the single embedded go many at using not margin balance that, us which the in a and open. will all shipper to as our so the different strategic load. question level, going belongs doesn't can we're ties and in you right of touch freight -- trying chain

come that skew the of laid fees day would EBITDA that I how of want that come. that it when will the efficient is generated the into then you syndication out do a paper, the markets, we But when look exposure and higher margin generate, will capital of the we've business the that broader and you for and to risk capital fairway And for are that float end that day you're going that at which to you. to the think remainder

next years. I That's realistic. we the it. quarter, get But from do. this done there's embedded not get must margin amount done of we looks that we we where is something been we do not this we capital-efficient, lot can -- that a transaction. the tremendous sheet-intensive is do it before. a we doing in where valuation. We analysts interest even see more that's billion XXx that journey news incumbents that in now, inbound X but We revenue opportunity to The in see what to be are have balance great and we a business like is order the next that won't year, here mean EBITDA investors we're for believe less displace and to work more understand And is are And must our where business. SaaS of to but going, in we're there. where I grow a right $X

in that's so out the years. And

approach like fairway as current. at looks like. we best that get think hope think my we there what how the look we I maturity, think a we and gives least Those are we you So of answers to it at question, start what thoughts we

Timothy Switzer

new necessarily I the Okay. longer-term that understand I projects of future start what billion are appreciate revenue expanding these, lines data-related potential can some these these shipper you more And be some know of the would on of to But products about Yes, some when products. it I talk mentioned these difficulty maybe newer roll to ones about excited about? of Great. which get yet. the time most revenues of And you you you you color market, out? half streams haven't of of talking also when looks from some maybe like Could and about ultimately. $X could that. we capped

Aaron Graft

question. Great Yes.

fuel the want quarter, why now, to feel that don't wallet say whether regardless Just holiday. a last it. cards allows and regardless to each with one. starting virtual -- say pay, of time load to that is It's other the know customers of right? need obviously exchange use they day, it's our value a of so not do a I card, you That's gave which fuel I but I we the And

Look, all and referenced are on You rain space. that you when load and greater. data It itself players in that are count, market the things products, about data And talk data. from things. at many the $X probably these is in and in you depends space, of least to in transportation smart space late many boards there there companies billion

We you to people we've think certain bring about truckers pay have data. don't to know we when our can't see, Why? value things in truckers that paid than own won't see. proposition And more the you other world. anyone truckers, see, Because

of them And think to to help add we industry, things to processes, protect, them so I we you'll talk XXXX, our carriers. as about, want help help the to the do customers go more create to some find forward, fraud, us from value efficient hear protect to in to

XXXX enough because initiative say beyond over grace have a some and to right that ideas, now. is got We we but

market. roughly shippers, laid who the XX referenced and to submit broker submitted have paid. get for refer large you to the carrier data The some that, needed needs from same data the shippers I the value to out. broker will is the payments we Beyond buy that. is by make in order be of that the data the very to the you Fortune invoice are XXXX part We need get same to to chain back we shippers, the to that the to factor that shipper some paid. by And shipper factor

We are hold who that data. the ones

structured a in format. it have We

is makes that's every of more take every load starts revenue is in to structured one shipper at the that of to anything. that loads, broker opaque data this time journey part this market, So that where there. single No these

start go All of about to need U.S. of the shipper is talking what market. procured in plus And $XXX loads transportation the we're companies get. billion

I you about, we're We'll plus we hear as I high TriumphPay billion start between a some opportunity thinking it think that believe in a clear things go. And make of data map $X that is about I what real shipper that more start deal and to you'll to and talk So the to thing. is indeed with us other give road XXXX. can into and why very revenue of very in our that something to say will it specificity generates more conviction margins great you turn at

Operator

Goetsch B. Our of next question comes from Hal Riley.

Harold Goetsch

the thoughts the seen Is digit. your is down, it the worst then I this worst factoring be probably you The overall that a low probably I've the double got $X,XXX. XX% on from down is for this to suggest seen. Because down you've just the substantially, X to trajectory. over business as questions, down double-digit is one that's low. now price on would years. that comps business. negative invoice longest prices get quite said volume's or X And And are But dominated of now? you've big ever invoice $X,XXX appears part and near to wanted that volume's

Tim Valdez

business Aaron in in over when is I've XX slowdown, And Hal, length this. never anything the been never it it like this. seen seen this now the mentioned at anything this you like years. look letter. I historic. of mean, I've I've

we have of normalization a those -- Now seen that rates. of

that what track carriers fuel is very we things. really how important average invoice impacts our One thing their track means and a of us So we amount. couple to that's closely on

fairly particular fuel no about within prices of time, carrier week-over-week reacting, power for short week increasing invoices we react if But average know So not invoice if constituent. there's doesn't you lag. pricing that that at look and the period DOE usually, a a on and there's a

that and margin carrier already at cases. the some amount first is in we're and the invoice is saw noticed small weakness our a below rate and for carrier the we've because between lower to Where more first the has stabilized go average the contract in segment It contract in contracting little any or lower, What can't letter. go the bit. the breakeven rates small can't quarter spot we Aaron's in the any quarter point

change. well before see And to so those something as start we normalize to have ultimately,

Harold Goetsch

Okay. bulk It And surge? deposits to how the that of broker you can comment you time? And in on one you we've franchise. follow-up seems increases, we've just to from deposit the also think Do peak the on deposit cost little the question seen use a time fluctuate seen bit.

Todd Ritterbusch

Sure. I'll answer the question. deposit

don't I think seen in So that peak the we've costs. deposit

down, promotions that you deposits our deposit is above a X% we're on upward carrying our time as rates long As bring down come in of costs. to when being, capitalize But large marketplace in to and pressure cost on continue anticipate in rates creep available for will the that, be rates extent. franchise. begin to rates line much higher much, lower We that we'll on do we deposit expect do core our do see there to than to be able a that and the

Brad, to do other questions? address you want the

William Voss

over Hal, deposit notice fluctuated one use really of noncore portfolio that levels is quite have part think of most we as advantageous a to we And economically you time, deposit bit I that continue broker any our time. at view broker use. We will a the options that funding happen. and the Sure. that did

our the a composition. manage portfolio, actively And overnight last the cost sell of to touch over that we wholesale look can funding just overall of costs we that fed. quarters couple you below If is those the at money where and actually

So the with those funding, Loan back that moving Bank forth. Federal advances because associated composition it as and are Home and see among economics brokered you change changes

Operator

comes next Sandler. Piper Schiraldi Frank from with Our question

Frank Schiraldi

just I volume to I want $X wanted And pickup think network months? Just back that billion to said billion XX over said I Melissa -- And in pickup. clarify say the correctly make go all did was those heard to you to on that was you $XX volume. trying volume? Just to sure about in something numbers.

Melissa Forman

clarifying Frank, you that Yes. for question. thank

to be on would an based billion $X annualized the billion So $XX rate.

So we implementations. have that's our the contracts Integrations queue. the and in

Some start total annualized volume may first But taking as roll that see. the right, implementations 'XX, of over place. those that is quarter you'd into

not up that volume Does makes So you total sense? in that would expect to pick XXXX.

Frank Schiraldi

Sure.

So that's -- okay.

is all the But the -- that annualized that Or volume. that's just total? network? So is across

Melissa Forman

Yes. majority. The

all would which sides the -- all yes. application. the cash right, that transaction, ways network of to the way majority is network The are the in volume. add of There to that down So the from we can prepurchase be volume

that will side on volume of network some one So the live of transaction.

on will be Some both.

Frank Schiraldi

Okay. factor just paying part, terms And wrong, in fees, factors that. I to And the know follow-up charging or to really, the fees you like are stable. factors. factor a been of we're pretty about of the XXXX correct for that then but that I revenues, that's been haven't When think me if fee thinking sort -- factoring -- think most network because has these I fees I'm

in penetration transactions. pretty penetration I so strong. the It on depending think be you seems network is going -- starting is on 'XX And to is where think idea like to do XQ your start perhaps

a if time pickup bat. sort that economy line could, right is of point? healthy think that good the off the how to you So us, still depend at is does remind freight about? just on the potential And Or it there

Melissa Forman

a question. great Yes, that's

When payments about over volume, that And XXX,XXX, our mentioned, quarterly this up as quarter in we've total and we've priced in represented those you at network when That Aaron where to So this quarter, pricing XXX,XXX of set. so that volume substantial landed time. billion transactions, in payment frame. you representing, we and we right? out at if our time X% of what the remember, $X XX% achieved growth when look network, are XXX,XXX transactions payment had the we was about

that clients they leverage set the we're market keep our year. QX a -- based include making there's the where that compression. keep those they're to it it and that make of data will timing But where pricing be especially is, when that watching was factoring monitor The as sure right, feeling -- the the is add want as at we're and last we'll in to compressed set going the volume, the changes give factors to just need, was market margin it. we've -- to on that a so we're the that 'XX those something? grace see increases doing, pricing that of decision and ability we of value And for network to now, is the all time. term With business to where And And market adding able we'll increase. to volume where in have right? will continue Aaron, giving payment QX keep right it made

Aaron Graft

right? and that the hear market. something see team how When great that's I earnings No. think reiterate you talk get you I about, out to we on I calls, And want can I to dollar the that question. we we answer. is her a Melissa just want well, is in just -- What such Hey, it, owe to what an these something with appropriate her monetize transaction It's value? investors. says,

to greatest how we start run think want the you to ahead are they this much customer. about to know to it more put creation, our concerned than their And build about that's Because a how it networks a We how factoring partnerships, the value monetization if the is our you, long-term partnership. quickly with as greatest we constituents not of more out. business. the I value take we value way adding

has I love enterprise, view, long-term a as long-term and we, the so a Melissa that that view. an fact And have

It is how to the available And be we not pushing But value transactions. application. changes reduces in It for end do a it friction us which are drive network, now, XX%, paid. if right about is to per them density talking up for cash in appropriate to operational changes creating network dollars, which It invoice creation, $XX more what's they several entirely driven changes primarily that the model. transactions, by are as their their if making you going staffing payments this factor's processes. XX% of is

the that We around it think still hold of to generate long-term in told $X those we think transaction we transaction $XX goes or prop of continues a technology and is it you to density we and instead the factor. networks somewhere generally and that's payor on of goes most conforming revenue, get they payee, eliminates up friction because on and value ahead economics the the trying themselves to network But a make get up, between density. monetize as better. Our total broker why that never things focusing

mean And to long-winded constituents I in at this, way delivering of be so in am density I the I we but the it network don't our want to more exactly and our investors value XXXX. understand. to priced the about what are than we concerned

we customers And I it. that's look we can our I say, if than in our customers think I will goals charge charging." ultimate will and then. value get our true, know depend look the goes we're in if upon it long-term to the It face up. don't way delivered face, can Melissa more "We

Melissa Forman

clients, valuable us, important I constituents. and customer, other just companies, heavy sure take is trucking this add, sure is hearts we I'm our thrive. do to factoring And clients, clients, good. most if my growing shipper broker that a need payments that what need help the numbers market just Aaron, all thrive, my as how them in is make their my for is their make on now, that a data And do quarter Yes. they could what and of I of they is think that the clients general, making clients, I primary my again, not in industry look that the help job our I how network, my giving priority right my But make to density, this day every all Tim, to is efficiencies network that factoring

Operator

from Instructions] will Tenner Davidson. [Operator D.A. be Our question from Gary next

Gary Tenner

might stabilize? and revenue cohort. dollars, that the Page I revenue the look years of got we If couple shareholder the customer versus letter volume different transaction of on look payment as X that that chart customers volume you've to your based were on by at over ramp how or wanted last to then ask

Aaron Graft

want I I So make understand the sure question. to

ramp at there's revenue it one on time. from associated obviously, customers, the new all a So come -- doesn't

is So opportunity of picture to cohort and -- getting entire set accurate dollars. the is revenue relative for what dollars you're XXXX revenue an XXXX not

audit But if those you're come with what using payment's we the that we and get number to and liquidity revenue where payment. one, then revenue into work arrangement, when discussions doing, just balance the are and dollars Number dollars, difference timing the from, injecting between creating make when Melissa And the think handle the contractual about paid two, and the we off we finally, payment by money made. make of we actually float, our money sheet. draft transactions team

sheet-only thinking answering to that question, revenue solution chart and balance volatility is correlated really I the business. that So were is a the about we what our size of very the like this you the the is is much show, in hope is designed the TriumphPay to if look was into factoring pre-XXXX where invoice, cohort,

some fact arrangements year-long Seasonality in certain we're volatility TriumphPay, recent-year expected to real into contractual the invoice. muted that transactions of these is more price. size you still thing volatility tied that these the by have forward cohort, to If at the fast facilitate a a is we but a certain doing number still of

should And see which dampen, you a network what do. is we that to start think volatility so

think if answers Gary, know. if let get best, question, more need just do I to the but I that me my specific, will I there's --

Gary Tenner

unrelated of And question, from I capital appreciate a an perspective, Aaron. just helps, then That sort No. I mean. it.

the [ bit, still Any thoughts, year-end. basis having close little points You on XX% XX update updated especially how terms of in the you to come about to you're a versus if finished opportunity with ] trying refill quarter down it. capital? that of about pretty thinking there's in the business. an that acquisition talked just can of deployment I CETX, I think, a help some But kind about keep maybe reserve stock in know comes

Aaron Graft

Sure.

long think an your and to broadly, going I'm answer and we I to -- term. question So take invitation how as think just

can the It's So in and businesses, if mature. place, community team, alone, you right? can the it bank sheet, at bank look in community is The our the balance got business, the grow. stand that's all

historically haven't made the didn't been risk because a tremendous opportunity think growing franchise. deposit We we we sense. have And

I people of think lot a something miss.

is factoring update goal. and we because to want a at century, growth see in we become that it have That's factoring largest look better the to help the business, business remember ROA. that to don't our restricted and the you X.X% quarter. our commitment factoring a pretax company wanted we the want industry that We still mature XXst honor the America. to want that. If on this factoring It's not we -- a business. or and intentionally be I when the in is But was worst relevant business, stay

can that alone. business So stand

TriumphPay investments. few at it at in it be not because XXXX, alone not margin place And points It's I place can a stand that the stand going alone. percentage don't requires a to even to a in alone think EBITDA means positive XXXX. is to delivering stand to of

that we you for capital go so How make at got And go to we required win you the TriumphPay right? we the believe to options, can do telling win? scale X we've are access the investments

kind would dilution. that people scale up inflection to it now. but take and that fund losses X years run We that, hit firm creating you with of without is option from been build hope point it PE-backed would just in of retained do can to X allow and venture an fund the made that and the and and capital-backed our time a curve current we to investors, that over much lot the or way I it one the that then Well, a you with this investors. you dilute value to the think us belongs long-term who've since believe the of that bet TriumphPay earnings And beginning could our it

helps year. to near-term that we perspective quarter, profitable us choose given has take place how in could that we we we take to valuation a a all choose much cared a and our something we profitability profitability, if think we a growth invest into So choose given it this to in multiple more lot any and But win. which it to perspective from attached that make any

So I excess to us I I to ride is What through don't this think X to want know it that TriumphPay in now to Absolutely. $XXX right XX act. be months. it Is be. What It you'll want to appreciate? win I most? market one. when the care over be prepared in else about if X to our months, of months, the long rest recession. act it in position the X number can about I buying it's ride But the helps able that now. our going a out I no are That's might think capital, think do back I see don't about out one I grid. months, million shares shares? right term, when think

network, accretive I and And number more the two, be penetration and that. prepared will do the to I opportunities M&A the believe market create, we the to goes for that some to have want more we this longer

don't quarter. it percentage think given certain as managing specific to ratio So our a in capital I any about

right a this season helps transformative. something to it just far if anyone okay the if and because to I think the makes that. that about should earnings know barely I is invests season, TriumphPay for truly our that And are sloppy prize, what as eyes or that think get here but goal given us of And with where look, going. margin in positive, a okay on overcapitalize more is long-term with that's than long-term given who be I'm EBITDA not in don't something us us look we're word, if optimized but I that makes getting

question. we it I investors think, to we want your how answers But know how and is that So think. hopefully, directionally

Operator

next Frank Our question Sandler. Schiraldi will be from from Piper

Frank Schiraldi

Yes.

Just set follow-up a the recession. that as to a you sort of And of create level see the to just recovery capacity out come on system through thinking some freight need and here.

seeing to you're Just much capacity to best seeing book the capacity we is what get your in the terms sort guess leave based system, how on terms you're in of to, where in of need of leave the there? needs what the event? a a match XXXX there anything more your Just you're it's Do Like where mind? that on a you trend front. and up seeing that do lot of to Is line? think work more system does in what as

Aaron Graft

business, could give you the Melissa you TriumphPay. to anecdotes sees what And factoring and talk Tim about in in she could

system. capacity leave in generalities, speaking the think I or XX% more we to need

the you as leave might Now as not just drive and very -- much, along because pain there very, out the and feeling they especially the all is -- What's system. who and right, capacity because of very the a authorities day. who've And is just brokers now. whole we was with truck not careful the My And Uber these saw for the fine. we in it. it, go it, are paying doing created they like be Like small, right? may those They It's rest live world more just equal. see make That's truckers world already may think, don't unwinding where happening attention park know trucking it, except you melting this friends that reported, you've right that got of at the to XX% it freight not the to lived does maybe these nobody we down. statistics. us nearly are of happen that. quickly 'XX, they're every who season -- is people is money they -- feeling for

going to It's is it's hope need to some think, that going more happening. to we system through, the leave be you that that folly. come tonnage-driven, to see I think freight's capacity I -- don't just

you And a I'm predictions you been you through economists. how shareholder give doing But material we wrong. they give to way, I which make see what give going inform We so to keep We we think. we hope to struggle going decision. we've in you're and freight not we're And either see I XXXX, you in doing. in desperately only improvement we're the because that grid the those understand letter, not the every how --

Frank Schiraldi

significant something then it -- think, and on that that that? Francis and the of as sort that would of near coming term. in closing that that port, does And I freight freight Just of Baltimore as and impacts it the create your certainly Does how more mean accelerate on Scott have the terrible in -- as recession? more Is that what the out recession create the impact that Bridge of I more does creates stress, how system? thoughts the capacity Does impacts yourselves. collapse

Aaron Graft

going ports. It's that reroute a to the not on impact recession. it does to other freight They're have freight -- meaningful not

else. and trucks the Capital, get prices. is of capacity freight way in returns You've I other that to that that to other need reposition hurricane that the finds beauty way find market will the more whack are That's to a distortion. We somewhere to ports. this understand got low than of market there only to into allocation where But risk-adjusted go temporary solution will rewarded, this out to additional yes, that freight regions. low solution. the in certain time that season, know regional appropriate. some of it's It its go capitalism, its to just capital and not is any those -- see gets cure don't prices freight

faster. That's I seeing like We need all but we regional why up, it blips -- would don't some think capacity said, I We trend storm significant. seasons. short or just that wish mean, system, any the things lead just happening. and to we're April that's in happen statistically One is

Frank Schiraldi

just there's if Okay. And more question, on if I in to no I one credit. wanted could slip see other

the of it are the in the guys most elsewhere? was concerns, Just on in it you noise the your potential due stress estate given -- stress on terms real from the in seeing points some point, front. commercial the size quarter, or where equipment to provisioning but construction, in the in Or it the finance book? thoughts to and is the and credit have terms book? the of most the of your trends of that, Just portfolio growth here Is is

Todd Ritterbusch

Yes, I'll that one. take

But is would say, finance equipment transportation I is So the focus. generally, definitely the within focus. transportation,

That what's don't happen the to every was quarter. equipment anomalous you in as a going quarter would first when won't think So first, use to finance for that forward, happen situation itself. say, about I repeat proxy probably an going going what's loss

forward, think contained losses look are they're the As couple we contained, a of and reasons. we for

even all, to of are into agreed. of XX clients First this our most continuing pay as recession, months

further For agreed, we've not good small got as up paying payment in various we're shoring as relief we're collateral minority its that's that offering positions that forms.

it. so And contains that

important that is have most team the place. the think thing we in I But

with the job for the that relationships. tell handle day, us. them they've terrific competitive have cycles. great through great a a served I on So those they're gives for advantage we've They how working basis. about cycles you, customer-by-customer And before It's a great industry equipment. confidence. every talked have and can me real outlets doing They

Frank Schiraldi

And low know real guys the commercial LTV. Okay. very side, I on estate have mean, I you

that maybe that Is of stress criticized is we'll sure industry-wide, nonperformers, potential I'm to about in just terms seeing reasonable? it loss So makes reasonable you losses? we're some ultimate that good deterioration while seeing classifieds, see of seeing think there. pretty some feel maybe But not

Todd Ritterbusch

commercial possible. it's not estate. real say our forecast in It's I'd necessarily

positions. from lot comfort it. price we nailed on you we've discovery. focused Like historically a But of So our loan-to-value drawn recently, more

today, X ago, -- and we at at were properties they're see what we were reaffirm begin we're those. a we're X not So valued they these and increasingly fine years look year to thought valued at we that as or comfortable what that with or

for didn't also the that have modifications We've those that's why in reason properties the been required -- happened. quarter. wouldn't primarily cash the that adjusting necessarily assets. haven't to noted rate this we've they term. put further we flow a have those to reason, to over nonperforming sure few If properties more, made have that and sustainable stay purpose the of and We And to That's of continue making a put a become expect properties. the modifications on we what's for modifications modification, for their just lot that's purpose don't those it more. more you on those for something longer owners be will And

Operator

further are at this Thank no questions There time. you.

Aaron Graft

you speaking week, joining you again you. the your we to for all us. I to soon. and look forward hope Thank rest you thank of enjoy Well,

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