Earnings Call Transcript - TFIN Q2 2025

Operator, Operator

Good morning. It's 9:30 in Dallas, and we're looking forward to the conversation this morning. As always, we'd like to thank you for your interest in Triumph and for joining us this morning to discuss our second quarter 2025 results. With that, let's get to business. Aaron's letter last evening discussed a noisy quarter's results, but underneath that, albeit positive distraction, laid out a quarter with a lot going in the right direction, particularly in our transportation businesses and around revenue growth. We are demonstrating the ability to monetize what we've built and the value we add to our customers and shareholders. That quarterly shareholder letter published last evening and our quarterly results will form the basis of our call today. However, before we get started, I would like to remind you that this conversation may include forward-looking statements. Those statements are subject to risks and uncertainties that could cause actual and anticipated results to differ. The company undertakes no obligation to publicly revise any forward-looking statement. For details, please refer to the safe harbor statement in our shareholder letter published last evening. All comments made during today's call are subject to that safe harbor statement. With that, I'd like to turn the call over to Aaron for a welcome and to kick off our Q&A. Aaron?

Aaron P. Graft, CEO

Thank you, Luke. Good morning, and welcome. Not sure how many of you made it through all 34 pages of the letter that was published last evening. If not, maybe you got an AI summary that did it justice. We use AI in our business, but we do not use AI to draft this letter because frankly, we value the discipline and the grind to put it together. We don't draft it just for investors; we do it to recalibrate internally to focus on our goals and our strategy. And we work hard to not have any throwaway phrases or sections, and we avoid legalese as much as possible. So I hope you find it as valuable to read as we do as a team to prepare. Now as you saw, there was a lot of noise in the quarter. The loudest noise was due to the successful resolution of the 5-year conflict with the United States Postal Service. It was long overdue. But in the end, it's what we expected. Beyond the financial recoupment of all that we were owed, I hope investors can see that as just one piece of evidence that you can take Triumph and see that it works. We will work deliberately to deliver on our promises. Now some investors don't always like what we have to say, what our strategy is, but we work very hard to never give you a reason to doubt what we have to say. And we said we would recover those funds from the USPS, and we did. Turning back to core results and strategy, the core transportation business had a great quarter of revenue growth, and I see lots of opportunity in front of us. Second, credit quality also improved materially. And finally, with regard to strategy, I would encourage investors who want to understand our strategy to pay close attention to the value chain section in the shareholder letter. It helps frame what we have been working on for quite some time, but only recently publicly revealed. With that introduction and my personal welcome to Dawn Favier, our President of Intelligence, to the call, we will turn it over for questions.

Operator, Operator

Our first question will come from Matt Olney with Stephens.

Matthew Covington Olney, Analyst

I want to start on the Greenscreens acquisition. Now that the deal has closed, any early observations that you can see? And just remind us of the timing of the integration of Greenscreens and what your initial expectations are as far as customer adoption following the integration.

Aaron P. Graft, CEO

Yes, great question, Matt. I'll start and then let Dawn address the customer meetings since she is involved in more of those than I am. Regarding Greenscreens, we have the Greenscreens we acquired, as well as the integration process into Triumph that will take place over the next 90 days. Additionally, we have the Triumph intelligence product, which will play a significant role in our future. The Greenscreens we purchased had about $10 million in contracted annual recurring revenue and focused on serving the long tail of the brokerage community, successfully demonstrating their ability to process data and provide better results to customers than others in the industry, which led to significant business growth. This is now part of Triumph. Over the next 90 days, we will integrate the $40 billion of audit and payment data we hold in Triumph into their models. This integration will enhance the accuracy and coverage of their models. After this period, we will discuss the Triumph intelligence offering, which goes beyond just modeling buy and sell rate data and includes other features we mentioned previously. We will share this with our existing customers and those who are already familiar with us. Perhaps Dawn can share insights on what she has observed since May 8 and the feedback she's received.

Dawn Favier, President of Intelligence

Great. Thank you, Aaron. That's a great question. I think, look, we're less than 70 days into this, and we are already starting to see great results from being part of the Triumph family now. First and foremost, the goal of penetrating the top 66 of the top 100 freight brokers; we had historically been focused on selling into the long tail of the market. We started to make some traction with the top-tier brokers. But we are already starting to see the results of really more engagement with those top 100 brokers that Triumph brings to the table for us. Our ACV historically, before the deal closing, was about $37,000. In our pipeline right now, we are seeing that increase to $80,000 ACV. So a significant increase there. I think the other piece of that is the data, the power of the data coming from the Triumph network with sightline to nearly 70% of all freight transactions. That work is already underway. We have, at this point, ingested less than 5% of that data and are seeing significant improvement in both our lane density coverage, which then leads to improved accuracy, both on lesser-traveled lanes, which is what's most important to a freight broker, but of course, across the network. Finally, we've had a lot of engagement with our customers, both on ISO and Greenscreens sides independently, as well as our joint customers on the value that we will be able to deliver to those customers by combining price and performance into a single intelligence solution.

Aaron P. Graft, CEO

Yes. The final point is that among our three transportation businesses, the factoring payments and intelligence segment is expected to grow the fastest in the next 2 to 3 years. While the growth will not be consistent each quarter, this area has the most potential. We have discussed this in the past as we transitioned into it, and I still believe that intelligence will outpace the growth of any other transportation-related business.

Matthew Covington Olney, Analyst

Okay. Perfect. Thanks for the color on all that. And then just switching over to the payment side. I think you guys reported the EBITDA margin this past quarter was closer to 14%. That's a pretty big improvement from where we have been. I'd love to hear more about expectations for that EBITDA margin moving forward from here.

Todd N. Ritterbusch, CFO

Thank you for the question, Matt. Yes, I expect EBITDA margin to continue to improve as we continue to scale revenues without scaling expenses as fast. And so I think you should expect regular improvement. My long-term goal is to get us above 40%.

Operator, Operator

Our next question comes from Joe Yanchunis with Raymond James.

Joseph Peter Yanchunis, Analyst

I appreciate your opening remarks, particularly about the idea of using AI to summarize the shareholder letter, taking that under advisement for the next quarter. Starting off here, I was hoping you could talk about LoadPay a little more. You reported a really solid quarter on account growth, and it seems that growth should really accelerate in the back half of the year. Now that you have more accounts under your belt and data on this initiative? Do you have a better sense of what the average annual revenue impact will be from each account?

Todd N. Ritterbusch, CFO

Sure. Yes, I can take that. So when you think about the average revenue per account, there are a couple of factors you have to consider. The first is the season of the accounts over time. Just like any business checking account, it takes a while to get those accounts linked, funded, and actively used to the point where you can get a good sense for what the ongoing revenue will be. The second factor is that we are adding a lot of new accounts every quarter. When you think about the average revenue per account for the foreseeable future here, I think you have to recognize that those new accounts will dilute the average revenue figure. But when you talk about a mature seasoned account, you're already seeing in the investor deck some statistics that suggest that we're getting $700 or more on average and in some cases, significantly higher.

Joseph Peter Yanchunis, Analyst

Okay. I appreciate that. And then the next one for me. Given your initiatives with LoadPay, Factory as a Service, your intelligence offering with Greenscreens, all these appear to be very disruptive to the industry. What type of pushback have you seen from some of the competitors in the market?

Aaron P. Graft, CEO

Yes, how long do you have? If you consider how these elements come together, that's why I've focused on our value chain. Everything we do in the five parts of our value chain is driven by customer demands. When we refer to customers, we serve various segments, primarily freight brokerages of all sizes. Our main customer base includes the largest Tier 1 brokerages, but we also cater to very small ones. In terms of carriers, most of our customers are smaller carriers, which make up about 96% of all carriers with four trucks or fewer. Our focus is on carriers with around 100 trucks or less, primarily small truckers. If we look at the audit side, we conduct more audits than any known competitor. Other companies perform audits, but not at the scale or for the major players like we do. While we might not have disrupted the market, we've managed to capture a significant share. When it comes to payments, no substantial competitor is providing payment services at scale from brokers to factors or carriers. We pioneered this with our payments network, creating a greenfield opportunity that has grown well. After handling audits and payments, we return to the topic of liquidity. There are factoring companies aiming to provide liquidity to carriers, and they likely don't appreciate our technology enabling larger brokers like C.H. Robinson and RXO to enter the space. However, those major brokers would have ventured into financial products regardless of our involvement; we just happen to have the technology that allows them to do so because they want to develop closer ties with carriers. Using the data from audits and payments, we enhance our intelligence offerings. There are incumbent intelligence providers, and including Greenscreens, there are three to four notable players in the industry, some of which are significantly larger than others. They probably aren't thrilled about Triumph entering the intelligence space. It's worth noting that intelligence isn't a zero-sum game; large customers will seek intelligence from multiple sources. Our aim is to be their primary source because our data is superior, and our models are more accurate. Regarding performance, which we incorporate into our intelligence, there isn't a known competitor offering truly market-neutral performance. Lastly, about LoadPay, no one holds significant market share in providing banking services to small truckers. While there are others in this space, we believe that by the first quarter of next year, we will be the largest provider in the industry. Once we reach 10,000 LoadPay accounts, we'll be unmatched in the industry. Our competition for LoadPay business primarily includes banks and credit unions, which generally lack interest in small truckers. In summary, different aspects of our value chain interact with various competitive landscapes. Some areas have no known competition, while in others, we already hold a dominant position. We anticipate competition in certain segments as part of capitalism, and we're ready for it, which we believe will ultimately benefit the industry.

Operator, Operator

Our next question will come from Tim Switzer with Keefe, Bruyette & Woods.

Timothy Jeffrey Switzer, Analyst

For the Greenscreens acquisition, we're trying to think of the go-forward run rate here. Is it correct to think of the near-term quarterly run rate to be about $2.5 million of noninterest income and $4.5 million of expenses, including the amortization? And then what's the time line for breaking even on that, particularly as you start to feed in the data you have?

William Bradley Voss, CFO

Yes, Tim, that's a fair characterization. I would say that we won't be talking after this quarter about Greenscreens in isolation. You should be looking at our Intelligence segment broadly because there was a little bit of other activity there. We're talking about roughly $10 million in revenue on an ongoing basis there. Yes, that expense number you quoted makes a lot of sense. There's probably a little over $2.2 million or so from Greenscreens specifically that we've added to our run rate. That $1.8 million of ongoing amortization contributes about $4 million to our quarterly expense run rate of that $104 million that we talked about going forward.

Aaron P. Graft, CEO

Yes, Tim, none of that surprised us. We anticipated the revenue when we acquired Greenscreens and assessed the intangible assets. The effect on our near-term earnings is about $3 million each quarter, which is significant and not something we take lightly. We carefully considered this decision. Regarding future expectations, I believe Dawn and the team will grow that $10 million run rate faster than any of our transportation businesses. The starting point is the smallest denominator, and the average contractual value (ACV) has risen from $34,000 to around $80,000 due to Triumph's distribution and brand credibility, which covers 66 of the top 100 freight brokers in the country. We handle 64% of all freight transactions in the U.S. and have the most accurate, verified data possible. No one else has this level of real-time trucking data. With our Greenscreens team's capabilities, we can leverage this data effectively. In transportation, we've invested significantly to drive revenue growth through factoring payments and intelligence, the three sectors of our business. I will be disappointed if our transportation segment doesn’t grow by 20% annually, as we’ve created opportunities for growth. I expect intelligence to grow the fastest in percentage terms, as we aim to overcome the earnings drag and achieve a positive EBITDA margin, similar to how payments have improved from negative 160% to a 14% margin. This is about all the guidance we can provide for now, but I hope this information is helpful.

Timothy Jeffrey Switzer, Analyst

That was very helpful. Appreciate all the color there. And then on the credit trends, it's good to see a lot of the improvement there, all around. Can you help confirm what dollar charge-offs look like if we exclude the impacts from USPS and the acquired portfolio you made? What are the expectations for provision for the back half of the year?

Aaron P. Graft, CEO

If you normalize for those two things, our charge-offs were less than $1 million. So an extremely good quarter from a credit perspective. Todd, I'll let you speak about the rest of the year. We're projecting credit losses.

Todd N. Ritterbusch, CFO

I would just give you some general guidance that the credit losses we experienced this quarter were typical of what we would expect. I wouldn't say we had a great quarter with respect to credit loss expense. I also wouldn't say that it was a terrible quarter with respect to credit loss expense. So just use that as a general reference point. Last year, we were talking about as high as $20 million of credit loss expense. Going back further in history, it was more like $10 million of credit loss expense for the year. We're going to end up on average somewhere at the low end of that range.

Aaron P. Graft, CEO

Yes. And I want to be clear on the $1 million; that was charge-offs. Net charge-offs, not just credit loss expense. You've heard Todd say roughly the low end of that range. Let me unpack it just so it’s clear. We opened the letter with this loan. What happened is we had the opportunity to buy a loan that we understood at a very steep discount to face value. We understand the equipment space, we understood the specifics of this loan. Some people may not say that's not core. Look, I'm not too proud. If you're going to leave nickels on the ground, we're going to bend over and pick them up. That's just how this company has operated since day one—since it was just me and a laptop. If we can see an opportunity to make money in the near term with a great risk-adjusted return, we should do that, even if investors don't want to give us credit for it. That's fine; it goes into tangible book value. Making money now allows us to do things; all the money that we've made over the last few years allowed us to buy Greenscreens, which is highly dilutive to capital without diluting our shareholders in a meaningful way. If circumstances give us the opportunity to get small near-term wins like that, even if they make our quarters noisy, we're going to do it, and that's why that's in there. It's why it happened, and we'll recognize that back into revenue. Whether it shows up in top line revenue or recovery or reversal of provision, look, it's cash, and cash going into Tier 1 capital is a good thing as long as you get it by not taking undue risk.

Operator, Operator

Our next question will come from Gary Tenner with D.A. Davidson.

Gary Peter Tenner, Analyst

Wanted to ask a question about the competitive environment, again, I think a follow-up maybe on somebody else's question. But in terms of DAT and the acquisition that they did of the ALCO payment platform, it seems to me that that is more specific to carriers versus brokers. So is that more of a competitive impact potentially to the traditional factoring business than any other part of your transportation business?

Aaron P. Graft, CEO

Yes. I mean, look, we don't generally use our earnings calls to talk about competitors. But since you asked a specific question, DAT has moved in with this acquisition to the factoring space. That's frankly not totally new as they operated referral relationships before. In the small world syndrome here, their referral business started with Triumph some 8 or 9 years ago, so we understand how the offering works. We've seen the product at outgo, and DAT acquired it. I'm sure they're going to try to use that to grow factoring revenue. It goes back to what I said: competition is a fundamental part of capitalism, and we're here for it. The customers will benefit from it, and it sharpens us. So yes, I would think that's what they’re aiming at. I can't speak to their entire product roadmap, but that seems like what they were doing. That will just be one of about 400 factoring companies that we compete with. So on we go.

Gary Peter Tenner, Analyst

And then, I guess, Brad, in terms of the $1.2 million on the USPS fee collection, it looks like that split between interest income and fees. Could you parse that a little more how much it was in each?

William Bradley Voss, CFO

Yes. That actually was all in interest income. So when we think about factoring fees that were accrued, it was factoring fees, but factoring fees typically end up in interest income.

Operator, Operator

Our next question will come from Harold Goetsch with B. Riley.

Harold Lee Goetsch, Analyst

My question is on pricing, I know we have a lot of early players in monetization. Just want to get your thoughts on it. I don't know if I missed that on the call, but the growth is terrific. It would be better if there was a little bit better monetization. I want to know where you're at on that.

Aaron P. Graft, CEO

I'm sorry, we had a little bit of a hard time hearing. The question was referring to the monetization of what?

Harold Lee Goetsch, Analyst

Of TriumphPay.

Aaron P. Graft, CEO

The payments network. Before I pass it to Todd, I want to congratulate him. The foundation built historically with Melissa's work has been fantastic. When Todd took on this role, remember that starting something completely new involves challenging interactions with customers; essentially, you're asking them to participate in something unprecedented, both for you and the industry. Outsourcing payments at scale to create a network in brokered freight wasn't on anyone's radar. One can develop a mindset focused on gaining market share — a crucial aspect of running a business. At some point, it becomes essential to start charging for the value created. Todd was able to come in with a fresh perspective and recognized significant value, so I stepped back and let him take the lead on this question.

Todd N. Ritterbusch, CFO

Yes. So just to elaborate a little further on that, in late March, when Aaron asked me to step in and take responsibility for payments, one of the first things I wanted to do was understand the value we're creating for our clients. That has been the most encouraging lesson for me over the last 4 months. The reality is case by case, client by client, we can put together the value that we're creating for them. It's very, very encouraging. So with that underpinning, I feel very confident going out and asking for our fair share of that value that's been created. To date, we've referenced the clients that we've already had the repricing conversation with, and those conversations are going just as we expected them to go. They will accelerate in the coming quarters. We'll start dealing with the bigger clients, the bigger brokers in a more focused manner in the third quarter. We'll see where it all comes out, but I have a lot of confidence that we're delivering the value that earns the opportunity to reprice.

Aaron P. Graft, CEO

Just to cap it off, it’s the transition from startup mode to value mode. Everyone who helped get us there—we really appreciate it. There was a lot of hard work to put in. Todd would acknowledge he gets the benefit of going faster because of all the work that was done. I hope you're pleased with the revenue growth you saw this quarter. We're not going to get that every quarter, but it is going to grow from here.

Operator, Operator

Our next question comes from Matt Olney with Stephens.

Matthew Covington Olney, Analyst

Just a few more questions here. Within factoring, I think you disclosed that the average invoice size was slowed by the market pressures in 2Q, but also slowed by the mix of customers that you added as there were a few larger customers. Looking forward, I think we're still assuming that factoring continues to grow at a pretty healthy clip. Should we anticipate a similar dynamic to continue where invoice price could be pressured as you add larger customers, or do you think this 2Q event that you disclosed is more of a one-off event within the mix shift?

Kimberly Fisk, Analyst

Yes. Thanks for the question. As you go upmarket, you might get a diversified mix of carriers that may be doing different types of hauling. Some might do shorter regional type loads, which will reduce your invoice price. We like to look at is segmenting out our portfolio from our large segment versus our small segment, which when you look at the small segment, I think you see more of like a normal $1,200 invoice value, which pairs up with what we see in our payment segment that looks at a lot of small carriers. So as we go upmarket, yes, you may see a fluctuation in the invoice price overall.

Aaron P. Graft, CEO

Yes, Matt, if you—and this is our fault, because we started training investors to look at average invoice size back when all we did was factoring. If you want to really look at average invoice size as a barometer of what the market is doing, you're probably better off looking in our payments segment than our factoring segment. What Kim just said so well, I hope you heard that smaller carriers have even smaller invoices on average than larger carriers. It's like $1,100, $1,200 because they're doing shorter runs. What you see in our business is the mix shift. It's not just about large and small; it's about the nature of what these carriers do. Our factoring business has a lot of shipper exposure in it, meaning that our carriers not only run for brokers but also run for shippers, sometimes under contracts, and those can be larger invoices. To look at Triumph's factoring business in isolation, you have to understand the customer mix is more diverse than if you just had what I think people assume factoring to be, which is small carriers operating in the spot market for brokered freight. We do a lot of that, and it's very profitable. But we have a mix shift that incorporates other things. You should not think that the movement of the average invoice size in our factoring business has a perfect correlation to what's happening in the market. There is some correlation; you obviously see that in the historical numbers when invoice sizes ran up to $2,400 back in 2021. But it's not perfect. If I can get you to look at average invoice size as an approximation of what the spot market is doing, number one, subscribe to our intelligence product, and Dawn will do a tremendous job telling you what the market is doing. But number two, look into our payments segment versus our factoring segment because it's not as influenced by a mix shift of customers.

Matthew Covington Olney, Analyst

Got it. Okay. I appreciate the commentary from Kim and Aaron. Then switching over, I think the letter last night had some good details behind supply chain financing, some good growth there sequentially. I appreciate this provides liquidity to some of your customers, especially those within the industry that has some headwinds right now. I'm just curious about how much growth we could see in supply chain financing over the next few years.

Todd N. Ritterbusch, CFO

I'm pretty excited about the potential growth for supply chain financing. It fits very naturally with our brand promise of helping the players to transact confidently. We can inject more liquidity into the brokers, but we can do it in a way that protects the carriers as well. I think we should just be doing a lot more of that.

Aaron P. Graft, CEO

The brokers have an interesting business model relative to many others. 85% of their expenses will be hiring truckers to haul these loads. If you think—and I alluded to this before, supply chain finance allows what Todd is leading allows us to collect from the account debtor, which would be the shipper or manufacturing company, whoever the broker is contracted with, and to pay the carriers directly. There are very few people who can do that at scale, and I think we will probably far and away be the largest. But it's not just about creating liquidity for these brokers. It’s about making their business more efficient and managing their cash flows better. Just so you can see how this all fits together, I think this is really important. The work we do in audit and payments was always around helping brokers get more efficient in the 15% of their expense base that had nothing to do with hiring truckers, right? Just their back-office workflow automation, etc. That's what audit and payments was designed to do to make their life easier and improve their margins. Don't miss this fact: the same goes for intelligence. Intelligence speaks to the 85% of their cost base, which is how much do I need to pay this trucker to run this load. When you look at the value chain together, we're now able to add value in the back office, the 15%, and we're also able to add value, if this is the right word for it, in the front office of how we set our rates with our customers and truckers. Holistically, supply chain finance, intelligence, all of this gets bundled together in a product suite designed to go back to exactly what Todd said: for every broker to achieve their business goals and ultimately for every trucker to thrive. That's what we're after, and that's why it's designed the way it is.

Matthew Covington Olney, Analyst

Yes. Okay. And then lastly for me. I want to ask about deposits. Specifically, the noninterest-bearing deposit growth has been strong over the last year. It's my understanding that, for Triumph, the NIB deposits are a mix of mortgage escrow, traditional banking DDA, but also the float from the payments business. Any color on what that mix looks like? Specifically, just trying to appreciate how much of that growth over last year on NIB deposits has been from the payment side.

Todd N. Ritterbusch, CFO

Matt, I can break that down for you. The largest share, a little more than half of that is mortgage warehouse deposit growth. A little less than half of that is related to TPay float growth. The other community bank deposit base, the noninterest-bearing deposit base has been flat to down slightly. We have seen a little bit of migration out towards interest-bearing accounts. We've also seen some large commercial clients needing to use their deposits for other business purposes. But other than that, those community bank deposits are flat.

Operator, Operator

Next question will come from Joseph Yanchunin with Raymond James.

Joseph Peter Yanchunis, Analyst

I just kind of wanted to go back to the factoring segment. The number of invoices purchased had a nice pickup in the quarter. Does that figure include Factoring-as-a-Service volume? If so, can you provide a sense of how much of those purchases were done from your in-house factoring segment? This is a price times volume story. The price being a little less correlated with the spot rate market. Just trying to better understand the forward trajectory as the number of invoice purchases outpaced the market.

Kimberly Fisk, Analyst

Yes. What you're seeing in the letter is a mixture of both FaaS and our core factoring business. The growth you’re seeing is on the FaaS side, but we’re also experiencing growth in our factoring portfolio, and with us onboarding our second customer next week, RXO, you may see FaaS volume grow in the upcoming quarters.

Joseph Peter Yanchunis, Analyst

All right. Is there any seasonality within your intelligence segment? Would that ebb and flow with the volume within the trucking market and those seasonal trends? Or will it just be—I'll just open it up there.

Dawn Favier, President of Intelligence

Thanks for that question. No, there really is no seasonality associated with that business. In fact, not only is there no seasonality, but historically, there hasn’t been any, even as the market shifts. Greenscreens as a company was created during 2020 when the market was booming, yet we had our largest growth in a down market period. This business is really stable from a seasonality and volatility perspective.

Operator, Operator

Our next question comes from a private investor, Lee Pi.

Unidentified Analyst, Analyst

Can you guys hear me?

Aaron P. Graft, CEO

We can.

Unidentified Analyst, Analyst

Going in a different direction, could you go into more detail about the growth in noninterest expense under corporate and other? The 10-Q characterized them as continued investment in shared services for all the other segments, and certainly appreciate that it's prudent to keep internally investing, especially during down cycles. Just more color to understand how these investments are going to deliver value for Triumph going forward.

William Bradley Voss, CFO

Well, the flavor of those investments in our corporate segment, particularly come in a few different flavors. The predominant amount of growth that we've had in that segment has been around things like information security and infrastructure that support all of these other businesses that we're invested in.

Aaron P. Graft, CEO

Does that answer your question? Or do you have a follow-up to that?

Unidentified Analyst, Analyst

No, that answers the question.

Aaron P. Graft, CEO

Yes. It's a great question, and it's a very fair question. We have to think about, since we report segments, how do we allocate things. There has been a lot of investment considering the volumes of payments and audit, then the things we're doing, and even intelligence and the data security and fraud in our space. We’ve had to get out in front of that. We're a bank, right? More than just being a bank, we are telling the market you can trust us to disburse $200 million every day and get it to the right people or we're on the hook. I don't know how closely you follow the transportation market, but organized crime is here. I'd argue that state-sponsored crime is also here. It is attacking every vector in transportation. Not the least of which are those of us who remit payments. A lot has been written about stolen loads, and our fingers are in that slightly, but they also aim at ensuring that there’s a ton of money being disbursed from this institution. We just have to be bulletproof. We are not ignorant of it, and it's a fair question. What we owe you is to hold expenses flat while we grow revenue. I would argue the expense base we have—while you could look at any specific line item, the bulk of it is there to be prudent in the face of a marketplace where we play a critical role, fulfilling the brand promise. If you read our slide deck, it's about transacting confidently. That is our brand promise: for Triumph to be involved in your transaction, that we've done the work—the hard work, the credit work, the fraud work, all of the regulatory work—that you can trust that we will do what we said we will do. We've had some expense growth, and I hear you; I think it's a valid question. Hopefully, that helps you understand the why.

Operator, Operator

There are no more questions at this time. I'd now like to turn the call over to management for closing remarks.

Aaron P. Graft, CEO

Thank you all for being with us today. We look forward to seeing you in about 90 days. Have a great one.