Good afternoon. My name is Raisa, and I will be your conference operator today. At this time, I would like to welcome everyone to Trinity Capital's second quarter 2022 earnings conference call. Our hosts for today's call are Steve Brown, Chairman and Chief Executive Officer, Kyle Brown, President and Chief Investment Officer, David Lund, Chief Financial Officer, Michael Testa, Chief Accounting Officer, and Sarah Stanton, General Counsel. Gerry Harder, Chief Operating Officer, and Ron Kundich, Chief Credit Officer, are also present. Today's call is being recorded and will be made available for replay at 8:00 P.M. Eastern Time. A replay of the webcast is available on Trinity Capital's Investor Relations website. At this time, all participants have been placed in a listen-only mode, and the floor will open for your questions following the presentation.
If you would like to ask a question at that time, please press the star and one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing the pound key. If you should require operator assistance, please press star zero. We ask that you please pick up your handset to allow optimal sound quality. It is now my pleasure to turn the call over to Sarah Stanton. Please go ahead.
Thank you, Raisa, and welcome everyone to Trinity Capital's earnings conference call for the second quarter of 2022. Trinity's second quarter 2022 financial results were released just after today's market close and can be accessed from Trinity's investor relations website at ir.trinitycap.com. A replay of the call is available on Trinity's web page or by using the telephone number provided in today's earnings release. Before we begin, I would like to remind everyone that certain statements that are not based on historical facts made during this call, including any statements relating to financial guidance, may be deemed forward-looking statements under federal securities laws. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements.
We encourage you to refer to our most recent SEC filings for information on some of these risk factors. Trinity Capital assumes no obligation or responsibility to update any forward-looking statements. Please note that the information reported on this call speaks only as of today, August 4, 2022. Therefore, you are advised that time-sensitive information may no longer be accurate at the time of any replay listening or transcript reading. Now, allow me to introduce Trinity Capital's Chairman and CEO, Steve Brown. Steve?
Thank you, Sarah, and thank you to everyone joining us today. As you saw in our earnings release this afternoon, we generated solid second quarter results despite the recent turmoil in the capital markets. Trinity has been a public reporting BDC for 10 quarters now, and during this time, we continue to build our team, our track record, and our operations through leveraging the platform we built over the previous 13 years. We stated before going public in January of 2020 that we plan to scale the business by investing in best-in-class talent, growing our revenues and expanding our NII, which would contribute to our dividends. We are now navigating our second market downturn in 2.5 years as a publicly reporting company as we continue to deliver on our promises to shareholders.
In the short time since our first quarter as a public reporting BDC, our team has grown from 29 to 52 employees. Our total assets have more than doubled from under $500 million to over $1 billion, a major milestone for Trinity. Our quarterly investment income has more than tripled from $10.9 million to $33.5 million. Our NII per share has grown from $0.24 to $0.51 in this second quarter, and our core dividend has grown from $0.22 to $0.42, with our core dividend increasing now for the sixth consecutive quarter in addition to our supplemental $0.15 dividend that we paid for the last two quarters.
Trinity's estimated spillover income is $2 per share, which will allow us to continue supplementing our growing core dividend or reinvest off the balance sheet to further grow investment income for our shareholders. As I mentioned, we have weathered two economic storms since becoming a public reporting BDC, and while still in the midst of a second downturn, Trinity has absolutely delivered for our shareholders. We pride ourselves on consistent and thoughtful growth as well as dependable performance, and we've done just that. Turning to some additional key highlights, we achieved another strong quarter for commitments and fundings, leading to a record investment portfolio. Our origination team delivered steady deal flow, allowing us to grow our investment portfolio during the quarter, which we expect will lead to earnings growth in the second half of 2022.
This performance positions us to capitalize on market trends even as we closely monitor recessionary pressures and the volatile macro environment. We have the right team and strategy in place heading into the second half of 2022, and I am confident in our industry-leading position as we enter into what looks to be a broader challenging credit and rate environment in the coming months. Our credit quality in the portfolio remains strong with 98% of our debt investments at costs performing.
During the quarter, we strengthened our liquidity position by selling $57.5 million of our common stock, and we upsized our KeyBank Credit Facility and availability under the facility by $100 million to a total capacity of $400 million and availability of $300 million. Subsequent to quarter end, we reopened our 7% bond and issued an additional $57.5 million of fixed rate long-term debt due in January of 2025. Kyle will dive deeper into the trends we are seeing in the venture capital landscape, but I can speak for our entire team when I say Trinity is poised to capture opportunity in this environment. Companies will continue to look for capital providers that can add value beyond the term sheet. That is exactly what Trinity team brings. Trinity's versatile financing solutions meet the evolving demands of today's challenging market.
We have a platform, we have a team, and we have a strategy in place that will accelerate our business through its next phase of growth in the second half of 2022. We believe our platform is built to deliver strong returns even in the current macro environment. I will now turn the call over to Kyle Brown, our President and Chief Investment Officer, for some further thoughts on our progress and more detail on the market. Kyle?
Great. Thanks, Steve, and good afternoon, everyone. Trinity continued to build on its momentum in Q2. These efforts have put us in solid footing as we head into the second half of the year. At Trinity, culture is an important part of our strategy. We've built a unique culture of entrepreneurial spirit that attracts the best and brightest talent, and we pride ourselves on this. We continue to strengthen the roster, which has led us to a healthy increase in deal volume. Our quality reputation for working with our portfolio companies when things don't go to plan is helping us navigate more challenging credit and rate environment now more than ever.
Turning to our results, Trinity's impressive record of originations continued in Q2 with $302.3 million in new commitments, bringing total commitments for the first half of 2022 to approximately $608 million. We funded approximately $193.8 million of investments, leading our portfolio to grow to $1.1 billion on a cost basis, an increase of 15.8% over Q1, 2022. We set a record of $416 million of total fundings in the first half of the year. As Steve noted, the billion-dollar mark for our portfolio is a major accomplishment and encapsulates the incredible work put in by our whole team.
$193.8 million of deployments during the quarter reached 28 portfolio companies, including $117 million in gross deployments to 11 new portfolio companies, and $76.8 million in gross deployments to 17 existing portfolio companies. Gross deployments were partially offset by $44.4 million in principal repayments, of which $16.8 million was from early repayments and $27.6 million was from normal amortization. We finished the quarter with $337 million or $373 million of unfunded commitments, giving us a strong pipeline through which we can grow our portfolio in subsequent quarters. All of the outstanding commitments are subject to ongoing diligence and approval by our investment committee. The composition of our portfolio remained relatively consistent, with manufacturing once again making up approximately one quarter of our total portfolio.
Professional, scientific, and technical services made up 24.3%, followed by information approximately around 8%. With respect to our exposure in the digital asset sector, we have made equipment loans totaling $69.6 million on a cost basis to three publicly traded digital asset mining and hosting companies, representing approximately 6.9% of debt portfolio at cost. These loans are secured by a first position lien on the underlying digital mining assets, which are mission-critical to their operations, and they represent contractual obligations of the public company borrowers. As with our other equipment loans, these are not traditional equipment leases, and the assets are held on the balance sheets of the borrowers, not Trinity. It is also important to note that these are 36-month fully amortizing facilities primarily deployed throughout 2021.
We believe that our underwriting thesis on these assets remains intact despite the recent volatility in the sector, and we are confident in our positions. Diving deeper into the portfolio composition at fair value, approximately 73.2% of our debt portfolio or $769.7 million is comprised of secure loans, and 21.4% or $224.9 million is invested in equipment financings. As we have said in the past, equipment financing deals are generally funded over subsequent periods to the commitment date and will fluctuate quarter to quarter. The remainder of our portfolio, approximately $56.5 million at fair value, is comprised of equity and warrants. While the venture capital ecosystem is still experiencing an anticipated tightening, we are well-positioned to navigate this industry correction.
We saw unprecedented VC investment activity in 2021, and while overall second quarter 2022 year-over-year quarterly VC deal count was down, it still exceeded pre-2021 quarterly totals according to PitchBook. VC fundraising in the first half of 2022 already reached nearly 87% of all of 2021's full year total. While deal activity remains historically high across all stages, valuations are declining as investors refine their investment criteria. The focus industry-wide will be on prioritizing existing portfolio companies and supporting them through this environment while sourcing fundamentally strong investment opportunities in sectors of innovation going forward. This presents an opportunity for Trinity as a leading financing platform in the VC ecosystems. At Trinity, we pride ourselves on our established creative approach to investing that lends itself to discovering opportunities in challenging markets.
While we remain vigilant in these times, we are also focused on the future and scaling our business with a rigorous investment approach. There's clear and consistent market demand for financing solutions, which become an attractive alternative to dilutive equity as enterprise values pull back in the current market. We believe we have a platform that is well-suited to support management teams as they execute on their next phase of growth. Our vision remains the same, to build a preeminent lending platform with a suite of solutions for emerging growth stage companies, and to be the partner of choice when there's a need for financing. We are well on our way to fulfilling that objective, and our disciplined strategy, continued leadership team will accelerate our business through these turbulent times, positioning us to emerge stronger.
With that, I'm gonna turn the call over to Dave Lund to discuss our financial performance in more detail. Dave?
Thank you, Kyle, and thank you to everyone listening in today. I opened my remarks last quarter by noting that our financial discipline and strong balance sheet have been key contributors to our strong financial performance in these volatile markets. After another quarter of similar macro challenges, we have stayed the course. Our ability to combine strong originations with a disciplined investment approach and financial foresight has enabled us to continue growing in this market. Our debt portfolio continues to be well-positioned ahead of future anticipated rate hikes, with 64.4% of our loans at floating rates, compared to 59.6% at the end of Q1 and 49.3% a year ago. While on the borrowing side, approximately 63% of our outstanding debt at the end of the second quarter was at fixed rates.
As we disclosed in our 10-Q filed today, a 100 basis point increase in the prime rate would have the net effect of adding $4.1 million or approximately $0.13 per share to our annual net investment income. The steps we have taken to grow our floating rate loan portfolio have positioned us to benefit from the Federal Reserve's recent rate increases as well as future rate increases while improving our returns. I will now discuss our second quarter financial and operational results. We recorded total investment income of $33.5 million, a 5.3% increase over $31.8 million of total investment income recorded during the first quarter of 2022, and an increase of 71.8% compared to the same period of 2021.
This increase from the prior quarter was attributable to higher interest income of $4.1 million on a larger loan portfolio, coupled with the higher average interest rates on our floating rate investments. We experienced significantly lower early repayments during Q2, which led to a decrease of $2.5 million in fee income compared to Q1. Our effective yield on the portfolio for Q2 was 13.8%, a decrease from 16.3% in the first quarter, primarily driven by a decrease in non-recurring fee income, which fluctuates based on the investment activity and early repayment activity. While our core yield, which excludes non-recurring fee income, remained steady with the prior quarter at 12.9%.
We incurred a total of $7.8 million of total interest expense and amortization of deferred financing costs on our various debt facilities as compared to $6.8 million in Q1. This increase was primarily due to increased borrowings under our KeyBank facility. For Q2, our weighted average cost of debt, including interest and fee amortization, was 5.6% compared to 5.9% in Q1. The slight decrease was due to borrowings under our KeyBank facility, which has a lower cost of capital at SOFR plus 285 basis points. Our operating expenses, which are comprised of compensation, professional expenses, general and administrative expenses, and estimated excise taxes, were approximately $10 million during Q2 as compared to approximately $9.4 million during Q1.
The increase of approximately $546,000 or 5.8% was primarily driven by increased compensation expenses related to higher headcount and restricted stock award expense. Our strong team, in which we continue to prudently invest, has been a major driver of our success, and they continue to maintain a strong pipeline of investment opportunities. As a result of this operating activity, net investment income for the second quarter was $15.7 million or $0.51 per basic share as compared to $15.6 million or $0.57 per basic share in the preceding quarter. We recorded net unrealized appreciation of $13.8 million during the quarter.
We recognized unrealized appreciation of $13.1 million in our loan portfolio, primarily attributed to marks on three portfolio companies due to underperformance, and $11.2 million on our equity and warrant portfolio related to mark-to-market adjustments as a result of general market volatility. We also recognized unrealized appreciation of $10.5 million on the flip from unrealized appreciation to realized losses of $9.6 million, primarily related to one legacy portfolio company that had been previously written down on an unrealized basis. We experienced moderate adjustments to our equipment loans as they are fixed-rate instruments, and I would like to point out that the future draws under these loans are adjusted to current market rates at the time of the draw.
Our variable rate loans did not incur significant adjustments, as the rates under these loans are adjusted with the change in prime rates. Our net realized gains for the year to date remain strong at approximately $43 million. As we continue to realize investments, our goal is to capture upside opportunistically, as we did earlier this year with our investment in Lucid and Matterport, while making judicious decisions to limit downside.
Our operating activities generated strong returns for our shareholders with our ROAE, or NII over average equity, of 13.5% and our ROA, or NII over average total assets, at 5.9%. Net assets increased by approximately 8% to $458 million or NAV of $14.62 per share compared to Q1 net assets of $424 million or NAV of $15.15 per share. Quarter-over-quarter decrease of $0.53 per share or 3.5% in NAV was primarily the result of the unrealized depreciation and realized losses I just discussed and the $0.15 supplemental distribution to shareholders, offset by our investment income, which exceeded our standard dividend by $0.09 per share and our accretive common stock offerings.
Our talented team and disciplined investment process at Trinity continues to forge forward, growing our portfolio and positioning us to continue this growth as rates rise. I will now hand the call over to Mike Testa, our Chief Accounting Officer, who will discuss our credit performance, liquidity, and capital allocation.
Thanks, Dave. Starting with the credit quality, our portfolio companies continued to perform well in the second quarter of 2022, with approximately 98% of our portfolio performing at plus. We currently have four portfolio companies on non-accrual with a cost basis of $20.5 million and a fair value of $5.9 million, representing just 0.6% of the fair value of the debt investment portfolio. Our average credit rating for the second quarter stood at 3.0 based on our one to five rating system, with five indicating very strong performance. This remains relatively consistent with our average credit rating of 3.1 in Q1 and reflects the stable performance of our portfolio companies that we continue to closely monitor. Moving to liquidity and capital resources.
Available liquidity as of June 30th, 2022 was approximately $93.2 million, including approximately $13.2 million in unrestricted cash and cash equivalents and a borrowing capacity of approximately $80 million under our KeyBank Credit Facility, subject to existing terms and conditions. We continue to be active in the capital markets, completing an accretive equity offering in April, which generated $50 million in proceeds, as well as an additional $7.5 million from exercise of our underwriter's over-allotment option. We utilized our ATM offering program during the quarter, raising approximately $3 million. Subsequent to the end of the second quarter, we announced that we reopened our 7% unsecured notes due January 2025 and raised $57.5 million, which we used to pay down our KeyBank facility.
As a reminder, the 7% notes, including the recent addition, are callable by Trinity beginning in January 2023 and are traded on Nasdaq under the trading symbol TRINL. Our leverage increased approximately 130% from 120% in the prior quarter. This remains within our long-term target leverage ratio of between 115% and 135%, depending on the timing of investment activity. We are actively managing our liquidity and continue to explore all capital options that will be accretive to our shareholders, such as investments under the RIA, once approved. With regards to the RIA progress, the review process is still within our expected timeline, and we continue to work with the SEC to complete their review of our application.
On June 15th, 2022, our board declared a cash dividend of $0.42 per share for the second quarter of 2022, representing a 5% increase from Q1 2022. This is the sixth quarter in a row that we have increased our core dividend. Additionally, the board approved a $0.15 per share supplemental dividend. Both dividends were paid on July 15th, 2022. Our GAAP NII generated coverage of approximately 121% of our core dividend for the quarter. We anticipate declaring a dividend for the third quarter of 2022 in September, subject to our board's approval.
Our accumulated undistributed earnings spill over at the end of Q2 of approximately $67 million or $2.15 per share continues to afford us the opportunity to invest the capital for the benefit of our investors and maintain a consistent and meaningful distribution to our shareholders. Moving into the second half of 2022, Trinity continues to be front-footed on its approach to portfolio growth, adapting to a changing market, positioning our portfolio and borrowings to capitalize on rising rates, and to build a team that will enable us to power through market headwinds. That concludes our prepared remarks. I will now open the line up for questions. Operator?
At this time, if you would like to ask a question, please press the star and one on your telephone keypad. If you're finding your question has been answered, you may remove yourself from the queue by pressing the pound key. Once again, that is star and one to ask a question. We'll take our first question from Finian O'Shea with Wells Fargo. Your line is open.
Hi, everyone. Good afternoon. Thank you. Appreciate the color on the crypto mining exposure. Just one question there. How do you assess the risk of depreciation or obsolescence as newer and more productive machines come out? Is there an impact, you know, perhaps, with newer machines that use less electricity or produce more, taking share, and lowering the profitability of more legacy companies? Or are you isolated from those sorts of impacts? Thank you.
Hi, Finn, this is Gerry Harder. Yeah, that's a great question. So, you know, you know, say a couple things. Our equipment financings to the three, you know, publicly traded portfolio companies, those represent, you know, the latest, most recent equipment as of the time of those financings. You know, what we see is the typical lifetime of these miners deployed in the field is five years. Our financings are 36 months. We do keep our eye on the halving events for Bitcoin mining specifically. The next halving event is 2024. That's when newer models tend to come out in conjunction with those inflection points in crypto.
You know, the other thing I would say is, you know, a miner plugged in and deployed, and actively mining, you know, is far greater than the value of a miner sitting on a pallet on a loading dock. Even if we look to those market prices, you know, we're still well below, you know, 100% LTV. We're under 90% LTV, even with the depressed prices today.
Thanks, Finn. One other point there, you know, many of the companies we have, you know, we have these latest generation machines out with, they are still utilizing older machines. If they're profitable, they'll continue running them. Our miners are profitable somewhere around $8,000 per, you know, Bitcoin. To the extent new machines do come out in 2024, we have already underwritten to be fairly off risk at that point. We assume the companies will continue to utilize the machines if they're profitable.
Very helpful, appreciate that. Just a small follow-up from me. Apologies if I missed this. Can you give us some color on what you're seeing for new origination yields, you know, given lower perceived, at least, equity valuations, in the venture market? Thank you.
Sure. I think I'll speak to the question from a credit standpoint and what we're seeing. We are seeing more opportunities. We are seeing companies get revalued. The market for kind of what fits for venture capital firms right now in terms of valuation has been lowered. Again, that doesn't necessarily impact us. Even with our portfolio, the majority of our gains are on rates and fees, and we're not looking for, you know, substantial upside via equity or warrants to hit the returns we have over the years. We are seeing a revaluation.
We are seeing kind of multiples of, you know, revenue go down across sectors, and we are seeing a lot of opportunities for companies looking for less dilutive capital, via a debt instrument. From an underwriting perspective, we are obviously hyper-focused on companies having adequate runway, 18, 24+ months of runway, and that's something we're really focused on from a credit perspective.
Once again, to ask a question, that is star and one. We'll take our next question from Paul Johnson with KBW. Your line is open.
Yeah. Good evening, guys. Thanks for taking my questions. For [right at] this afternoon, this evening. I'm just curious, in this environment, kind of going along with Finn's question, just the higher demand for venture capital debt, are you guys securing higher, being able to secure higher prepayment fee income spread? You know, so we could potentially expect, you know, even a lower prepayment fee income this quarter, just potentially, you know, higher prepayment fee quarters in the kind of back half of most of these loans in a sense-ish.
Thanks for the question, Paul. This is Kyle. We are seeing higher priced facilities. Rates have increased. You know, some of that is rates have gone up overall as the Fed increases rates. But you know, we are seeing a little bit higher pricing. There's a little bit more demand, maybe a little bit less capital available. We expect to see some slight increases, you know, over subsequent quarters on pricing. But overall, not significant shifts one way or the other.
Got it. Appreciate that. I'm just curious, and it's okay if you don't have this, but, if you have any sort of, observation, in the background in general, just in terms of, liquidity from your portfolio companies and your various, venture capital partners. Do you guys have any statistics there to share at all that, kind of give an idea of what sort of, you know, cash some of your companies are holding onto at the moment?
Yeah, I mean, this is Gerry. Thanks for the question. You know, we're obviously tracking, you know, cash life of our portfolio companies very closely. It's a significant factor in our credit rating system. You know, weighted average basis across our portfolio, cash life's around 15 months. You know, the majority of our portfolio companies have at least 12 months of cash life at this point. We are definitely seeing a trend within the portfolio as, you know, companies face or are concerned about, you know, either valuations or a scarcity of equity capital. They're definitely in, you know, in a mode of trying to increase their profitability and move more quickly to a cash flow positive state, as opposed to, you know, the spend for growth mentality that we sometimes see.
Got it. Appreciate that. I'm just curious. I mean, do you track or do you disclose at all what percent of your loans essentially have any sort of additional debt or bank debt that could potentially, I guess, be senior to any of your loans within those companies? Is there any color you can provide there?
Yeah. I mean, we most certainly do, right? You know, the vast majority of our portfolio is, you know, first lien, either enterprise or equipment. But with that said, you know, and this is a question we get a lot about, twenty-seven percent of our debt portfolio is blanket second lien. We will work with certain senior lenders well-known in the industry, Silicon Valley Bank, Western Alliance Bank, Pacific West Bank. You know, it's just a small handful of companies that we will work with typically, because we have experience with them over time. We are well aware of the total debt held by our portfolio companies. You know, to give you some comfort considering senior and Trinity debt, the median loan to value in our portfolio is about 14%.
You know, we do mark our assets to market every quarter. You know, as we get third party valuation marks for portfolio companies, we're adjusting that real time. We think we're still, you know, in good territory from a loan to value standpoint.
Yeah, further, you know, Paul, those are generally deals where it's a very strong company. You know, we are comfortable with a senior piece in there, a piece that we would be comfortable doing ourselves. That much lower cost of capital creates a blended cost that gives the company additional runway. That's. We think of those as typically strong deals.
Once again, to ask a question, it's star one. We'll take our next question from Christopher Nolan with Ladenburg Thalmann. Please go ahead.
Hey, guys. What was the driver of the realized loss again? I missed it.
Yeah. The realized loss was primarily one company that you know we have had in the portfolio since 2016.
Do you wanna name the company?
Sure. Store Intelligence.
Store Intelligence.
It's Store Intelligence, yeah.
Got it.
That had been written down on an unrealized basis. We had a full recovery on a fair value basis from the first quarter.
Got it. I think in the queue, Store Intelligence, I think is has an equity piece still there.
That's correct.
Okay, great. I guess the increase in the dividend came as a surprise given that the market overall seems to be weakening. Is it driven by expiration of the spillover or anything along those lines?
It's Dave. You know, the dividend is driven by our operational performance and our forward-looking expectations in terms of performance as well. Knowing that we have to distribute 90% of our earnings, you know, we try to make sure that we're doing that so that, you know, we're not in a position where we've got a huge spillover that creates problems for us in the future.
Great. I noticed that I think your leverage target went up a little bit. Should we expect the leverage to be at sort of the higher end of that range or to drift lower going forward?
You know, clearly we're trying to manage the leverage down. We are expecting some, you know, repayments from what we've been told from investors. We wanna manage that it's around 125. Clearly we're taking actions to address that funding capability.
Great. Okay. Thank you.
Once more, to ask a question, press star one. We will pause a moment to allow further questions to queue. Our next question is a follow-up from Paul Johnson with KBW. Your line is open.
Hey, guys. Sorry about that call that dropped earlier. I think I heard most of your answers. Appreciate those, very helpful answers. One more question, if I may. I'm just curious, like, you know, in this environment, what are you seeing or, you know, how do you feel that most of your VC partners, I guess, are sort of playing this downturn so far? Is it, you know, majority of this kind of cutting back on, you know, expenses, getting ready, you know, potentially for a recession and, you know, I guess a winter amongst this kind of VC fundraising, kind of in preparation for that?
You know, do you find that guys are, you know, perhaps finding more, you know, potentially very good opportunities just, you know, obviously the valuation's down among most, you know, high growth companies, pretty significantly? Any kind of comments there would be helpful. That's all for me.
This is Kyle. You know, I think we're seeing a couple things. You have groups with capital who have really kind of, you know, they have two different things they're really chewing on right now, which is, one, we need great deals. This fund is probably gonna be defined by the investments made out of it over the next 18-24 months, combined with making sure they are still able to get opportunities. You know, I think this market probably is a little bit different than other downturns in that you have really mature companies with sound business models, real technology. You know, most of these VCs are teetering between being very careful and opportunistic and also making sure that they are able to get into deals and deploy capital during this time.
We're seeing that on new opportunities. We're seeing it within the portfolio. It's much less about not getting and deploying money. It's much more about at what valuation, right? I think we all agree at Trinity that technology is a great place to continue to be investing and, you know, we're glad to be servicing that sector.
Got it. Appreciate it. Thanks. That's all for me and congratulations on another good quarter.
Thanks, Paul.
It appears we have no further questions at this time. This does conclude today's program. Thank you for your participation, and you may disconnect at any time.