RNST - Earnings call transcript Q1 2019

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Operator

Good day, and welcome to the Renasant Corporation 2019 First Quarter Earnings Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would like to now turn the conference over to Mr. Oxford. John ahead. go Please

John Oxford

members Good Corporation’s thank year-end XXXX Participating today conference Alissa. management us webcast for for call. are call this Renasant first in Renasant’s morning you, executive you team. and joining and of Thank quarter and

begin, uncertainty. to you that or let to, results factors cause over A during but number no our some changed are which undertake filings statements, time. to remind of occurrence not results in be changes, the rate or assumptions, limited factors our Those expressed from the expectations actual factors with results interest obligation other may of other call forward-looking me to the differ involve performance to the discussed recent we of reflect in comments statements. future events portfolio operating Before this statements risk anticipated materially and could unanticipated and update forward-looking We regulatory changes or SEC. fluctuation, forward-looking revise include,

addition, the the under now, release, McGraw. In non-GAAP reconciliation in can earnings which financial Robin? the A found may we Data the Market measures. financial Corporation to may Robin Chairman, the Renasant site Executive will that of our tab call in this has turn been And be measures morning measures corporate comparable News discuss GAAP be to I Investor our most measure of posted non-GAAP renasant.com some & Relations section. over to the

Edward Robinson Mcgraw

thank everyone, Thank you, today. John. Good you for us and joining morning,

XXXX. first for our results of proud of the We’re quarter

share. resulted our of margin, maintaining while continued earnings our managing of per diluted record on core focus Our $X.XX in expenditures the stability effectively

from XX quarter previous required quarter capital which classified increased assets to minimums the our ratios well X.XX%, be and each tangible tangible and the measures basis ratio, to in all regulatory from capital regulatory Our excess as previous increased tangible to capital capitalized. points

of a consistent strong are second in to continue the pace, value metrics evaluate XXXX annual Xth the at share. quarter dividend we $X.XX of evidence by and to XXXX returning that to our brings $X.XX This announced available our levels since increase profitability capital dividend further first will per are We’ve we that $X.XX quarter and is alternatives dividend we share. superior generating per Our shareholders. of our increase to quarterly

million We approximately also stock have program. $XX under availability of buyback our

will purchase shares we any didn’t we ways continue performance the stock’s that in our shareholders. capital return we quarter, to will our feel Although and to value first prudently during in the monitor deploy market best

over Waycaster, Now to I’ll Mitch? in our our Officer, detail Chief call quarter’s and President Mitch results. greater Executive turn this to financial discuss

Mitchell Waycaster

you, Thank Robin.

quarter $XX.X the to our at first million of million, was XXXX. $XX.X quarter of results Looking as for net income for first the compared XXXX,

$X.XX compared EPS of XXXX. for and were – $X.XX the $X.XX, Our for respectively, diluted to first basic as quarter, diluted and our the first quarter

During XXXX, our a first on of equity return X.XX%. assets quarter of return X.XX% the a on and of earnings represented

at December XXXX as approximately billion XXXX. to our assets XX, Turning our balance March Total to were approximately sheet. $XX.XX at billion, compared XX, $XX.XX focus

growth to basis. XX, continues While resulted which as XXXX. XXXX, grew the at March March to linked-quarter annualized purchased a XX% XXXX, be when XXXX, million at $XXX in billion to compared December XX, $XXX.X total $X.X Loan first of for of compared production not at XX, $X.X loan loans December increased billion quarter at slightly million to XX, XXXX on strong loans non-purchased

our strategic believe market well recent of leaders, in a experience see which optimistic payoffs the quarters, XXXX. move gain slight throughout to and share the Although commercial beginning and as we somewhat our about are recruiting footprint, pipeline. to footprint previous elevated results added did remain, lenders quarter loan our integrated now drive during of second specifically initiatives as we are as specifically, market our fully production, we decrease the talent of as payoffs into efforts More compared producers our increased new remain we levels quarter. And loan will of throughout we execution in

talent will We we continue to business increase disciplined terms or share too our to competition underwriting the aggressive structure throughout we disruption our to for model. pricing our in advantage recruit and concede including of market take footprint. and structure hire new opportunities Still believe if and remain standards, are and not

XX, averaged side compared $XX.X XX.X% at average deposits average or to sheet, balance we of XXXX. for XXXX deposits period billion, or deposits billion of total the March the billion same deposits XXXX. December grew On liability $X.X in $X.X XX.X% to bearing billion, the Non-interest XXXX, $XX.X at of XX, from for

we XX, optimistic March Shifting production Looking quality. to excited our asset overall loan credit remain core talent growth lines. our both product and metrics and quality sheet, sides and in on At our forward, about XXXX, both of current markets, bank our offerings continue and are future commercial specialty given our to pipeline, balance strong. bank,

as NPAs, As an to was XXXX. total $XXX,XXX, the for at The XX metrics, and first of as of fourth XXXX. on credit compared list quarter all the loans total $X average fourth annualized an near XXXX to for historic for for loans quarter charge-offs of or XXXX, a on million lows. of quarter or were $X.X the quarter first including of the for days million internal the total quarter loan basis $X.X average past million of for provision are X.XX% annualized to losses first percentage compared of watch due $XXX,XXX, of loans XX quality X.XX% Net XXXX, assets, or basis loan and our

for the Operating additional Officer, Chief and I’ll Now over discussion Renasant’s Financial turn Chapman, Kevin? Kevin call our of results. financial to

Kevin Chapman

everyone. Mitch, you, Thank and good morning,

income on the compared XXXX, in increase of quarter XX from quarter on adjustments compared at was the quarter resulting margin first basis as a for $XXX.X net The of in was Looking XXXX, of quarter, Reported operations, in accounting interest our XXXX, margin purchase a linked-quarter X.XX% to points was quarter impact our interest a $XXX.X margin basis core compared the of million for fourth point X for results basis the first X.XX% basis. million points net on the of linked-quarter our first to the fourth XXXX. to XX basis. for as

For the first quarter our as on total XXXX, of year-end. to X.XX%, the at was loans X.XX% yield compared

the Excluding the impact from of quarter. increased yields XX points purchase accounting our loan adjustments, basis previous

our of Mitch new replace as income driving or As higher we or in pricing continuing further are at loans yielding rates interest assets. to our remaining rates, with while maturing similar mentioned, philosophy, efforts previously disciplined higher a result renewed

cost first the was XX of basis for quarter of XX total quarter XXXX, points to fourth deposits as points, XXXX. the the of compared For basis

first the XXXX million worth of XXXX. $XX It $XX quarter Brand compared $XX.X approximately was non-interest XXXX income. $XX.X quarter fourth were for the income included million banking Mortgage fourth compared from the the operations, quarter X, $X million, quarter fourth mortgage noting banking to which the quarter of that at for million as to divested Non-interest million, is XXXX. November income for was Looking Mortgage the for of for of income XXXX. on

plans As we our to enhance division. month, this disclosed mortgage wholesale announced we earlier existing

joining to in pre-tax originations million in be will contribute $XXX that $X expected to will million to is annual income. $XXX and XXXXXX us million team approximately the expect produce We approximately million $X

with appetite. a existing the an overlapping our team wholesale compliance similar well operations footprint, mortgage Additionally, as as complements

We later fourth quarter $XX.X expect Non-interest group million for quarter. of to the this expenses for to quarter first wholesale as XXXX, new the join compared us XXXX. the were million of $XX.X

our at while expenses, our manage same margin effectively streams. revenue through revenue driving to diversification continue of focus and the We on time expansion

Our efficiency XX.XX% for the ratio quarter. was

For specific additional or our refer our press ratios. release information numbers I’ll you on financials, to for

comments. any to Robin Now call I’ll pass the back for closing

Edward Robinson Mcgraw

while we’re XXXX Thank margin, the as as our efforts our first near increased core of as historic proud at In we dividend or of closing, and credit quality during well remained capital lows. Kevin. metrics you, our and ratios, quarter

Alissa, Now, call turn you questions back I’ll answers. over and for to the

Operator

you. Thank

from Please will question today The Sandler [Operator Milsaps question-and-answer ahead. of Instructions] first We begin now Brad the comes session. go O’Neill.

Brad Milsaps

guys. good Hey, morning,

Mitchell Waycaster

Brad. morning, Good

Brad Milsaps

non-acquired bit on continues more growth. be color Wondering if could to Obviously, loan maybe the not a good. be a offer you where although production you guys wanted standpoint, from net to little

there paydowns may for kind as balance curious kind see fight the of year on Just outlook in you the you and the book? acquired of kind of of what the your

Mitchell Waycaster

and Yes. at compares in your the To Good discussing maybe started go would morning, talk million production the little Brad. $XXX a As for to we quarter slower. then quarter. to QX, there. good see begin That about pipeline the and then This does prior is and Mitch, remain $XXX million from typically I’ll expectations point, quarter, future production

the the as month quarter for the production point XQ key production finished came March. that in the XX% think we March, of out in is I of that, in

also, we the we with production did at year, That strong as good quarter compares see a $XXX a million quarter prior pipeline we And this $XXX went million the in into prior we million. – ended So very $XXX increase to are beginning quarter. quarter.

just growth a Tennessee; we’ve Georgia; that pipeline we this with state, million We – region to of pipeline’s in in in pipeline Florida; of the distribution in past, line. see good pipeline also in business in that XX% currently as by and Alabama, XX% seen XX% is about loans. $XX would XX% the forward non-purchased production, from that million days The next generate looking XX Mississippi. $XXX expect in

existing is, bit we’re talent, optimistic know quarters a about that just quarter, talent we of place, other well talked have we markets, the particularly forward company, the last I last as certainly added had about in think the as two XXXX. that our the joined the thing in very talent. I newly looking good

the added the of Atlanta additions bankers In XXXX, as Brand, West the the they first our leaders in well business and commercial in market. addition commercial eight part five of two in then in Tennessee, there North last we Georgia and and other specialty an market quarter talent, to managers to lines. relationship as quarters, Tennessee middle additional were In the addition are of

in we’re hiring with stages talent discussion and addition, footprint. the various In – of across or

market start looking pipeline talking given a just again, to the we quarter. strong given those current talent, that we’re So forward, as

single mid underwriting loan we – we very in mid single we would to growth. optimistic And naturally again would last and midyear, growth approached disciplined as the in trend that thing very about about the I’ll more mid-teens that in non-purchased, and we single production more in as high year, mid result throughout us toward We’re go But remain which do continue we growth. range forward will pricing to optimistic we’re is production quarter, which well. of one as per as I future and loan mention more kind know back growth. bring as quarter, talked net. we $XXX would we the expecting continued be about million

Brad Milsaps

Kevin. all No, that’s appreciate maybe just the to with I And great. color. follow-up

core the couple of on was terms a you’re like, a to looks – hanging seeing little kind deposit discuss the maybe the you in margin, NIM up of pretty the bit kind looks face curve? the like to of you’re on just and ability repricing on of well. Just it basis stabilize of that what points, a you NIM in side flatter Can

Kevin Chapman

Yes.

So course it’s change from things or a interesting just rate the outlook. days of XX how rate over environment

competition. how just I that seeing Fed what pause of bit we’re couple is just I it things say the A and and on with it’s interesting deposits. little least, competitive the remains. Competition still expectation think an of there’s been industry don’t So at that on has everybody for in commentary, would discussing rate now a secret I is think the increases. is a deposit been cost

that’s that still deposit will in we around We’re March, competitive deposit going that our we – little may We that are is two a just throughout just deposit to increase compared that cost basis pressures strong think if by quarter, deposit February. bit. at just in monitor forward. were increase some on interesting, to and cost we We previous we If the see find actually we that be of our our encouraged We the deposits months. have interesting. how the base. January that saw look monthly a to sign – that cost base, deposits a deposits of continue easing a monitoring and in impacts deposits flat

grew you X% in at Non-interest our the bearing DDA to grew If X% deposits deposits X%. look growth annualized, XX%. total to for quarter

some will I we or virtually of have And on mitigate augment now. change mix that. funding so right wholesale say no also our focus that would help

million treatment have the I of end at TruPS. So our – rest we year, $XX or of think million, the the advances $XX borrowings borrowings our sub-debt maybe is FHLB of capital

funding So our has base been strong.

will And yields as focused a yields. more impacts how continue that what augment loan is happens in curve some to of think to as that we’re pressures around and What have flattening pressures to it curve. of help that we as couple those yield pricing be growth, competitive in loan strong. expect well on on seeing We the to loan place we things of is solely that the a changes just curve or we’re us flatter due loan

Brad Milsaps

Great. you. Thank

Operator

comes Please next Rose The question with Michael James. from go ahead. Raymond

Michael Rose

are Hey, you? guys, how

Mitchell Waycaster

Michael. morning, Good

Edward Robinson Mcgraw

Michael. morning, Good

Michael Rose

Just out to have been a know size the where about parts amount there of are targets some because lot about, opportunities on talk hires it mortgage sort on wanted in opportunity, competitors be the it team. Just are you Can greater I would talk at hires of to you Florida obviously – your number point? of just because Maybe, Mitch, the of Is can Thanks. you The so brought has which it the your markets guys Atlanta focus this can markets because expect don’t the talk color Is coming any the the hiring, if you there. from? wholesale of helpful? in core of of disruption? demographics? Is you there? of hire,

Mitchell Waycaster

mentioned mentioned, And really moment a at I those footprint. for just Michel. historically some across I the few opportunities quarters for we’re as the Sure, markets, last seeing of just the looking and

beginning last business just part the now, of that of joined And mentioned align, specifically just Mississippi, disruption XXXX, we’re let conversations. Nashville, that part markets cultures the in the you and having as to to two our to opportunity certainly discussions some as us here exist see those like think, this. of Renasant, and Tennessee, these for the years, the core seeing the I across Southern business Birmingham, for markets opportunities of and it future that drives think in just relationships and exist production. of that opportunities If eight I number bank, that room, we to showing models those when a the I we really – East in built in commercial a to at our grow that five mean, if you quarters the a can Georgia, look of Bartow, we’re these continue and align, Memphis, of just having look you on market have opportunities, success the we our creates conversations, us up at him continue But the done having that culture that at forward conversations up if at lot many I look Atlanta, good footprint. look joined you in speak Bartow’s company And what and and just opens I parts last we quarter, the expand? we’re considering having our the in currently want we’re for pipeline in always we the expect

Bartow Morgan

Alabama personal to expand to those has We’ve a that’s of job quarter, and come lenders, goal course Memphis, showing I in a the XX and the fourth on been it and commercial I and new put six about quarter. to about absolutely. started as see My Nashville pipeline. on the Sure, in think what’s bring in Atlanta,

to out of – pipeline, to As we production six a months reach out out those developing their back started see them takes start lenders, for to usually customers.

at hit single-digit to March, as And annualize start and and March the loan produced quarter total we dollar amount start we at be so growth per would that month look month the the higher March that to number. look we for

been they out We’ve believe been and where they to XX-plus-year bank Renasant the that okay, have bank, that’s in channels regionals that old at and And lender lenders products a banking. sure that, the seeing offering. to remember they things find that I large are delivery we making a that issue, an that see have that’s in able and the that desire understand that services other provide – seasoned the verticals the that your lender lenders it. of in regionals we they think are we community we the force been to want they manner bring to I customer, the And place think say, products community but the to need banks. the with force I what – that we talk go. cultural we of attractive coming we the lenders your we’re customer services we don’t of are and want they and that want bank So

And so, mind working the it to with a seems that formula. bank, it engineered the in we really of it, be designing customer designing reverse and for instead

Michael Rose

Maybe That’s pretty you good around just all reconciling past back puts guys the numbers. are color. a the the Kevin, question, helpful like on core seems the level. and to mid-X.XX% margin the with very takes still

on switch accretion how into CECL, the year and to next wanted Thanks. to As switch then we on will day with PCD? from with thoughts change get PCI the impact, impacts the one

Kevin Chapman

Yes.

get there losses and And couple of QX – finalize how I models. today just still our today of how phase, of books the how that use with just loans every how exactly are of still number. discounts we we as have the purchase our constantly book quantifying we CECL. day CECL, tenets allowance preparing our one timeframe, evaluating have in in different it’s some generate bit some and use Right But some methodology on we’re we at to captures day and or different that that book building or continuously similarities allowance. are So But one into through we what the give the reallocation a of we think or risk transitional on get out look some We’ll CECL put but little a say would some models. XXXX. the and CECL, accretion years fact under factors, we QX – far work and mean, for impact is, back the we that have how different loan as be more to providing we I will as reshuffling impact that going to we as what our amount. accounting commentary the been And into for there’s would now. would on accretion gauge to or we’ll loans, we as clearly methodology we are for that with impact still impact the a absolute income do hard now, methodology

Michael Rose

Okay. Maybe just one on capital. more, just

capital Your build will and here is building quickly. pretty

the You guys increase further for didn’t of Just can unless optimize levels, use you capital to Any are any utilization sense around or this quarter. get to and thoughts even at you M&A the a how down the of potential, buyback? the road? some potentially you looking Thanks. think dividend buyback trying guys where

Kevin Chapman

Yes.

capital. those how for just opportunistically So clearly, little over we quarters. have been last it I to of like for prioritize we of a M&A organic – couple use would bit that both mean, the or slower growth

at which looking of the is priorities, our other some we’re So buyback.

Now granted, we the didn’t use any in QX. buyback of

had a back the I’d there XX%. increasing QX. dividend management put levels, ago, get Board dividend for we we valued from position our would QX we put off we purposes. least than in – always We about we a aggressive The stock get years perspective, that to than payout If I say of here in stay buyback. rebounded able has that payout were just current start higher it out our defensive do at with Our be we’ll quarter, price we fallen it. two ratio the were were – ourselves more dividend the of buyback, also could pleased most a the we’ve increase, for in recently. And that priority we’re we dividend. and target At in

ratio. So things do couple we’re looking need fall some increase we not of other is, A looking we have at as we we that start the below or that’s that, to whether payout debt. when at

have into We that will previous start acquisitions phase-out from period. instruments some their capital getting

its will that a We hit from have sub-debt previous anniversary five-year some acquisition.

And expensive the it but over course becomes treatment. then the may that we So lose be cheap capital capital, debt phase-out period. of

debt look at repaying some well. may of trigger we So calling pulling or that as the on

table and expensive, aggressive we capital. way, some QX we and redeem – steps as capital buyback look debt the what rather QX, on options a So beneficial to think whether at on deploy some several call than taking in more to or will a that in become the is

Michael Rose

That’s helpful color. Thanks for taking my guys. questions,

Kevin Chapman

Michael. Thanks,

Mitchell Waycaster

you. Thank

Edward Robinson Mcgraw

Mike. you, Thank

Operator

question comes Olney next of Stephens. go Our Matt ahead. from Please

Matt Olney

Good thanks. guys. Hey, morning,

Edward Robinson Mcgraw

Good morning, Matt.

Kevin Chapman

morning, Good Matt.

Matt Olney

Want the back discussion. go to loan to growth

originations. guys I gave around us good think, the details some pipeline you

And of pulling mention just side, think Anything in On the to about I about the soon the that? a mentioned fewer somewhat you can the else or Was you too Is in prepared say payoff payoff this trend? borrowers bank call this quarter. you the that remarks, else back competition first paydowns? slowed can selling? slowdown what it

Mitchell Waycaster

Good Matt. Sure, and morning. again, good question. This is Mitch,

First, just the volume.

go the our were percentages quarter. was XX% unwilling quarter, to XX% we would under where last we the unusually underlying to QX, million QX, If that payoffs match we increase coming we and I $XX where was about saw those the increased say, over sale saw of quarters. under do was But by to of of actually And million is back always point QX that quarters four that But it off early average at your four XXXX. four saw $XX average. the last of The where and were where about the – analyze about quarters, a actually this percentage we average million about prior that we’re XX% the in $XX you high, look decrease terms, asset, to QX. QX was payoffs. the under quarter, payoffs this about in XX%

seeing less. about to normalized those XQ, but a XX% on mentioning was little would that in middle of which earlier, year, two where you mid-single, production those in the the I the I mid over to part average And net To more was the early that’s getting that four a by be the tell, expectation and would we’ve the more $XXX say from get a to X So that that when look then high-single. I that total, drive about at say, million if the XX%. seen in mentioned XX% quarters. range, in would rate, In utilizing you last guidance totaled XQ, I normalized in about two QX. categories and maybe

So hopefully, pullback earlier. see to we’ll the continue as on that discussed time, equally at we But focused we production, some. driving are same

Matt Olney

great just on you color. that’s Durbin Okay, Thank in the the think, got is you to for the fee that then you impact Mitch. And going I here me, income, remind hit quarter.

remind of expect me quarter? the in you Just third what the impact that

Kevin Chapman

$X.X we So the the to third Durbin $XX.X projecting. million calculating Annualized, in to and would we what impact $XX are expect million it is range. us million quarter, be

– that will you’re we out two streams we’ve kind – wealth continues we is fees long-term go and incomes. to in historical lines, consumer or is levers of into income revenue to fact pressures had strategy insurance, And of time insurance, it pull base, and just effect regulatory a at into there maintain some rationale this trying maintain that’s wholesale so that And wealth fee our absolutely a to and to about there ties in our non-interest –that enhancing that right, that why like to our we’re diversify And management. mortgage whether mortgage into in can just have mortgage there, total our be services QX. or revenues to to at other investments of incomes of adding looked mortgage of the and couple case, our we whether management, XX% commentary pressures, and group, legislative risk we on

to those banking pressures NSFD and XX augment card service charges on We we’ve in those have last years income. income seen that help been continue in the now look to sector. Again, for would debit spaces fee historical the

Matt Olney

kind figure lose the Kevin, you dig that pretty you’ve mentioned, debt Qs And of Ks of kind year? just capital that treatment some I’ll and got out amount capital the through will the of of Okay, to the picture, details, this what’s quickly. we the great. of some then, some sub-debt big lose here kind dollar but treatment

Kevin Chapman

$X X%. call million vary, the will think calls about, it, I cases, rate some $XX approximately it’s in is to upwards Yes, And of stated million. those

as so And looking can it from to a given somewhat, – make calls, equivalent why lot a not we’re an – perspective, that that that’s at little those some with we’re looking dollars associated the bit of buyback that at some a it. It’s EPS it when of it’s make of cost the big we it’s something is – at the of lever way much a be just to not to that that’s as far redeem redeemed. seeing available capital it amount now. But ticket, as a could accreting look as that dollar capital, be that some how returns some we’re we’re and in right

Matt Olney

yields loan yield slightly yields. I are overall X.XX% what loan Kevin, then the new to above the that flat coming core think, level? hear that above that I loan correctly? renewed Did core implying? on question me. and or is at mentioned from last And were you you Is And the

Kevin Chapman

It’s in higher. coming

range. more and renewed X.XX%, the our X.XX% in coming So new is

it’s book’s And yield loan historic our what current is. what above – so our

Matt Olney

Got it.

Thanks, me. from all guys. that’s Okay,

Kevin Chapman

Thank you, Matt.

Mitchell Waycaster

Matt. you, Thank

Edward Robinson Mcgraw

you, Thank Matt.

Operator

KBW. [Operator of Catherine Instructions] Our comes Please next go question Mealor ahead. from

Catherine Mealor

Good Thanks. morning.

Mitchell Waycaster

Good morning, Cath.

Kevin Chapman

morning. Good

Catherine Mealor

an one I quarters just starts of those quarters typically want acquisition, know time this to circle that more then moderate three on elevated couple specifically typically on two, paydowns. I are back past. the after and a quarter get to we acquired as the paydowns that and

the year? be about thinking runoff are should acquired of back-half the loan pace you the of So how in

Mitchell Waycaster

Sure. $XXX would that saw add quarter to be payoff pullback would more that paydown looking may We in at I’ll start Kevin and we probably just which this – was Catherine, XQ million, correct, what with some roughly to want $XXX there, to you’re this. line continue And to see. million. about

I Kevin, expect over that we to would back that go we this Difficulty] saw But as – Although, time. guess we point, your lumpy, as pull [Technical forward. quite will to quarter some

Kevin Chapman

a bank have obviously, Brand that paydowns think Yes, of related or the would I we to lenders, with not think they’re and their directly that out was loss bank. I maintaining with would seen any And with the lenders those of not being Catherine, portfolios. Brand. that, either

they’re from normal. selling across the So the a we’re where my It’s wouldn’t I’m right any see I now. just the bank. Renasant portfolio asset, seeing whole situation pulling away what I’m business, selling

not Group on with there. the So there is abnormalities going Brand any

Catherine Mealor

Great, okay.

And Do quarters? to million growth, $XXX feel seems next mid get around, $XXX can it – normalized with more a like acquired is net so, few a then back rate. the call single-digit you with that run in loan it, even like million payoffs you of

Mitchell Waycaster

we do again, that’s and then million by per $XXX – getting into $XXX production Yes. get million, XQ. $XXX mid-year, expectation – as million more quarter on we that if of the the Catherine, you in that

So category. mid the getting in high-single, at to as look I in paydown was we using run the current to payoff, rate counting purchase our that back – net

Catherine Mealor

Got it.

And Okay, great. then last expenses. one thing on

guide this linked nice You – this give reduction a saw you can Any quarter. for what expense you’re for kind an quarter of expecting year?

Kevin Chapman

Yes, we’ve a drive just – – that I I’ll expense growth. generally. taken maintaining that reflects I QX lower we I’ll moderating efficiencies talk mean, efforts the to think talk by

QX. they We QX, increase worth things, As do in will you think, that we – effect noting our expenses see increases, I take of from look in out a is merit QX here March in here. couple of is

So you expenses increases. will see a just in merit rise from

get into in. As mortgage expect to we kick we QX, QX,

that I’d start expenses. do also opportunity and an fluctuation with And now add, just mortgage, to of volatility then quarters. in upcoming today investments you’ll some view the And seeing variable We make the continue hire, to right payoff hiring. so cost some on associated

the for mismatch revenue So in in see expenses or quarter and on you could another bringing two. then kicking some not

expenses will lift. in we that our everybody producing be are Brand the look to hit XX% anticipating want that revenue eye in keeping efficiency – – just to the further forward, So have that it cost And just out, continuing understand, rise. range fully in revenue going our expenses marks range we we and fully more saves. have on ratio as drive We the with investments but an XX%, on will with we

Catherine Mealor

you. Thank agree. I it. Got

Mitchell Waycaster

Thank you, Catherine.

Kevin Chapman

Catherine. Thank you,

Operator

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

Edward Robinson Mcgraw

you, today time speaking in you interest everyone’s appreciate again Thank And everybody. forward we soon. Corporation. your We Alissa. with certainly and look to Renasant you, Thank

Operator

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

may disconnect. You now

Renasant (RNST) 24 Apr 192019 Q1 Earnings call transcript