RNST - Earnings call transcript Q2 2019

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Operator

Good morning, everyone, and welcome to the Renasant Corporation 2019 Second Quarter Earnings Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note, today’s event is being recorded.

I would now like to turn the conference call over to Mr. Corporation. Renasant with Oxford John Please go ahead.

John Oxford

webcast and Thank are for year members and Participating quarter you of Renasant’s team. morning us you, – this for today second and Jamie, joining quarter Renasant thank second call. management good Corporation’s call conference and executive well, in XXXX

cause me differ you A some or factors other with filings changes, be discussed limited involve from rate expectations statements. and uncertainty. results of factors expressed in statements, we recent regulatory forward-looking include, to, the comments during forward-looking the Securities Before which fluctuation, to remind portfolio Those other our begin, not our performance of and actual and but factors the anticipated Exchange could number let are in materially may that results this call risk interest Commission.

undertake to statements events results revise obligation reflect of to changes changed over to We update unanticipated or occurrence operating future or the forward-looking no time. assumptions,

that this tab comparable release, GAAP the of been be reconciliation measures our News has most the the In financial renasant.com on be in Data the site our to under found of Market corporate the may posted A morning we financial measure Relations addition, measures. section. non-GAAP which may non-GAAP some measures Investor earnings discuss & can in

I’ll now, Robin? Executive turn McGraw. And the Robin call Corporation over Renasant Chairman, to

Edward Robinson Mcgraw

strong thanks and factors the everyone, the interest navigating us while with macroeconomic and joining of morning, the quarter the first-half other during Good for uncertainty today. John. of you, results, rates direction Thank year. second through the closed around We

greater of has the manage our effectively face business shareholder economic driven value. we pressures effort light in consistently continued to Our core

we equity profitability quarter shareholders. average on generate assets evaluate higher and capital, XX.XX%. continue return of as be to for to opportunities metrics These Our was X.XX% we’ll value strong, return was and to our to return levels on the our continue tangible

$XX.X leaving XXXX. October average of about stock repurchased program, price stock of million in which $XX.XX. was began quarter we announced the weighted of a purchase July, million $XX a previously second purchased of In We in of repurchase under the common at $XXX,XXX, just earlier XXXX by XXXX, will of under plan. or October the remain stock Directors. The the program effect of our our in total until amount the of $XX repurchase of of Board authorized availability million

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

Mitchell Waycaster

Robin. Thank you,

of was our the results million, of to second at income when an net compared second XXXX, Looking XXXX. quarter for quarter $XX.X of XX% the increase

were Our $X.XX quarter, quarter for basic diluted XXXX. second second and EPS $X.XX the as for to of compared the

the net first-half joined discuss strategic for the hires for decreased in in $X.XX greater have quarter approximately production year. our quarter of million team and and expense new EPS to of detail members diluted XXXX the I’ll that after-tax As The XXXX. expense income includes to related by later, second the related $X.X company these

Total were XXXX. end at at loans as investment our to $X.XX quarter, $XX.XX approximately $XX.XX XXXX. at December compared as $X.XX December Total to balance of XX, at billion to focus held approximately XXXX billion our XX, June Turning billion the billion, compared the XX, assets sheet. for were

we has enhanced made addition which long-term our quarter, tremendous talent already the up in expectations. In that to makes production the talent team, investments during our significant growth

will impact months profitability. to growth significantly revenue provide although we robust the short-term XX loan our outlook, have we an immediate this anticipate beyond, growth loan our enhance to strategy X previously, on mentioned I portfolios next into and our generate and new teammates expense hiring which additional over XXXX As will and believe

XX Officer. Curtis years these Perry of joined Chief with expect more than and And has bankers Curtis in we Since these our experience our United of Southeastern banks Corporate role. his joining successfully that to strategic States, company that serving To as and banking hires, many XX in elaborate Curtis corporate of announced producers with Banking regional further us on the knowledge leadership previously our banking has connections recruited our will reach a team, other corporate corporate years throughout footprint. group. we revenue and brings broaden depth the

XX new complement across Curtis, geographically to and hires already addition new from by the strong our retail second bankers business team, managers line footprint corporate market These presidents, including In during the standpoint. and team hired we members revenue relationship commercial the both a of producers, quarter.

lines including until and Florida senior added XXXX. specialties healthcare leasing, retail Panhandle, housing, new have team from commercial leaders sheet estate, extending our or won’t and C&I in lending, Central our of real and these market of Alabama South business, South lending, middle asset-based production teams all new Nashville, in be Memphis we’ve We’ve market and fully Georgia, relationship team members bankers. in across managers equipment reflected balance Atlanta, East These business Birmingham The the added lending Florida, Tennessee. members

our the low we bolster As the digits loan to X long-term mid stay XX to better company portfolios to for expect months, net we single low double plan digits efforts our to or quarter, in growth mid high XXXX. goals. this next hiring opportunistic to QX over digits mature be to in single single in growth the Further, and in the

for of merger various that or believe presents market opportunity great advantage activity, disruptions, taking whether due to our restructuring company. a We organizational

place growth out business markets. of market disruption commercial building we to the and accelerate are have to on of capitalizing expansion we Although believe support lines team and the and all we that pace teams, our from corporate this right in

Total quarter. stable fund at slightly billion base committed deposits increased to remain year-end the deposit $XX.X to low-cost from our a end growing loan the of to We growth.

in first-half XX. success Even compared in December bearing as to $XX interest by we rates million deposits experienced on our XX deposits increase of growing the non-interest XXXX, when of

of positioned to well sides both sheet. our associates and talent we’re on Looking success. about future balance team forward, us both continued of growth Adding and optimistic has strong for already excited production loan our

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

Kevin Chapman

quarter. the and had company second Net income $XX a at XXXX. strong relatively flat Overall, Mitch. million quarter was the up to you, of Thank compared million quarter-over-quarter when $XXX interest

Net Several X.XX% basis quarter-over-quarter. of XXXX, as down compared margin for quarter the second followed interest the to X margin was decreased of trend. for the points Core XXXX. quarter to a first similar margin factors led X.XX%

securities yield of side basis an points, X to on increase of decrease sheet, a impact negative asset margin while in sale loans of points. X the mortgage-backed On to prepayment fees a mortgage negative basis the had balance in for held X X to the a impact had on

the to balance the side liability Turning of sheet.

Our basis points cost negatively of impacting deposits margin. increased X

deposit deposits current of while of have will costs we Also continue previously the cost XXXX, are ways in mentioned, we our we rate to to deposit moderate. bearing beginning environment. to quarter, the successful While see as and look manage been in in at first-half growing Mitch increased during the deposits non-interest costs

worth the XXXX loan highest loan It rate flat, yields on yields portfolio were experienced we that of is in current in of – new renewed second one relatively yields loan the quarter new and the loans the represents although renewed also mentioning and cycle. have weighted average

noninterest representing mortgage XX% which income great was all for Noninterest income our a $X of by us, our total division. income of of to nearly continues source by almost generated be we On linked-quarter revenues. a million, grew basis,

by as income I are decrease interchange X, card to should to fees. for expect we $XX Durbin note to million that Durbin Based the from debit of noninterest QX, our limitations $XX subject July annually. impact we now on on income the million

had great mortgage our interest As the quarter. experienced production a on in rates production. division an that declined during increase higher saw We mortgage quarter, margin and our

million up the announced which first mortgage was acquisition quarter. The on $XXX July FirstBank’s operations During [sic] $XXX was locked the from quarter, approximately our of X, volume [June] completed wholesale million, was previously XXXX.

the being transaction did the mortgage FirstBank to that looking to boost our late operations of material so quarter. a division these acquired give second quarter, going operations date forward the closing the we’re our the results on forward. in have impact for will not But the Given

is by attributable commissions the and $X production. mortgage This by increased million million. and to to quarter-over-quarter related mortgage driven increase in mentioned increase $X.X being hires is which Mitch, an Noninterest by expense the a benefits, salaries in increase increased new previously employee primarily

ratio quarter which efficiency second below XXXX, efficiency an maintained represents we’ve was which during XX.X% of for ratio the quarter the Our fifth XX%. consecutive

to June continue our quality metrics XX credit Shifting at asset of our quality XXXX, to strong. overall remain

due As a metrics, historic list assets, total XX XX or our NPAs, credit past and days watch internal are loans near of lows. percentage at to including all

second loan $XXX,XXX the X XXX,XXX for an Net or in during points of loans average basis loan for of quarter annualized total quarter. basis charge-offs losses the We provided XXXX. on provision were

So on is our growth. focused long-term strategy

the too will for remain We growth. believe and the for underwriting if competition quality credit including and in sacrifice aggressive risk concede standards, structure margin not structure the will We terms are disciplined appetite. our we our not

We in worth credit during officers credit already have team drive production, other the It members. support hiring that detail call staff this to of is three new which noting senior the growth. we’ve long-term team our production and quarter, will our added discussed during credit to strong support

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

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

Edward Robinson Mcgraw

our strong XXXX, we And to a addition Kevin. while the of historic quality metrics credit you, expect maintain of continue we we see new Thank closing, healthy with at lows. pipeline. talent, loan near a or to In banking experience second-half

Now, Q&A. Jamie, over I’ll to turn you the call for back

Operator

And we’ll session. from [Operator go pause momentarily KBW. roster. the this at today Catherine time, your and our ahead to from with the Mealor begin time, this comes assemble first question Ladies question. we’ll question-and-answer At gentlemen, Instructions] Please

Catherine Mealor

morning. Good Thanks.

Edward Robinson Mcgraw

Good morning, Catherine.

Catherine Mealor

Can moving little if outlook want in about particularly your for just you’re this with a start Thanks. I bit cut the Fed the you year? talk back-half about thinking of margin how margin. the the forward, to

Mitchell Waycaster

Good Hey. morning, Catherine.

So…

Catherine Mealor

morning. good Hey,

Mitchell Waycaster

for point cuts, cut. we’re So rate XXX basis preparing rate two

now we’re the process actually mitigating And so of taking that. to steps start

environment also the fees prepayments positioned portfolio we on for that cash flow. but portfolio, the mentioned, generate I security rate security weighed our our margin, rising portfolio on to As

that’s on current margin the that at weighing is time. So –

help some extend is to life the portfolio reinvest of So of security to restructure do and efforts going the to it. margin we’re the mitigate

We’re cut. cost advance of today actively managing the rate in deposit

costs are basis from we really Compared initiatives increasing we on that’s slowing. a that seeing If funding to deposit deposit market. money win, year, increase quarter, increase deposits bps. break address to increased basis X If but look we where points quarter, real time going basis pressure that’s points and are on cost we And during last at in forward. X the down per taking that – signs XX are pressure X they the X to where points our came we now were

trying to in that of and asset say continue and renewed that and be And to side pricing ensure new it would compensated with pricing we the that, only on And the give the I we any in remind to recent all, – – just then getting for to on restructuring last our pricing history disciplined other all not are liability the our help remarks least some mitigate the we that in in had at again current prepared rate the our new compression. that experienced and also of side. renewed margin rates in but or highest side current

Catherine Mealor

mind, mean, compression that core think, stable to It pressure lower say levers core that additional are with even enough rate? you more this still fair saw, these fairly of in I off NIM NIM or was it lower like the of than keep here Is expected you’ve kind this I there’s got feel from to rates, we of quarter. all

Kevin Chapman

of a the that. in of There as we portion But a not we experienced result pressure curve. the the curve, on Yes. be mitigate really short we significant the think margin pressure can QX end the end of was could the long additional of

all the just of loans longer – held The mortgage curve. the that’s or portfolio, the reflective the or movement security the for flatness the on sale, inversion of end

in loans. With the opportunity that what us impact the any curve experienced gives more rate the of rate help us that moving, to long was QX end we curve. end But cuts the the sensitive mitigate deposits, of on will would move shorter that

Catherine Mealor

into the was we thinking model on CECL? higher more XXXX about of one year post accretable this then quarter. then as how margin. And The and this you How the for are yield get right. All we back-half that should

Kevin Chapman

Fair.

And being some So just piece the the we interest it CECL. rate it of of accretable down yield, the components, decline more that portion the of between accretable in stay mark, breaking at then fairly we the yield, it post that we expect two margin to a expect total portion a bit, – but XXXX have rate today. throughout the of close little what

loss we then where cash at impaired The in identified is card, and of performance non-accretable non-accretable we expected and acquisition that has flow what a and – recaptured that’s discount. then credit wild what anticipated loans and losses volatility our that actual than – the That’s as the of an exceeded and our done have the that better lot our difference recapture performance we margin. we had throws date different

of continues to will as means those flow, which discount has like the or discount this project it that the purchased it and which at CECL we – today, we we – that cash As if portfolio free understand previous much into quarters. as been, up historically it the non-accretable quarter be discount has then goes performance on allowance. those and loans, better that as But is impaired look

provision. the But rather through the than flowing it flows through margin,

may stable volatile work out we little have so that portfolio. a losses, have we acquired for And to may provision a just loan forward, margin. as But more going bit continue we more

we implement income change that related of and we see isolate feel, to impaired in we as implementation credit component as So material a don’t loans. the CECL purchase pre-tax

Catherine Mealor

we you in would XXXX, you’re if Got going pre-CECL, it. to to XXXX at it were level CECL, assuming of Basically, out accelerated that need yield some in least accretable with if in take offset the provisions? a

Kevin Chapman

Correct.

Catherine Mealor

That’s Great, helpful. you. thank Okay. Great.

Kevin Chapman

Thank you.

Mitchell Waycaster

Thanks, Catherine.

Operator

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

Michael Rose

Hey, good morning, guys.

Mitchell Waycaster

Michael. morning, Good

Michael Rose

good So – morning.

with So a team a hires obviously coming of brought on on. lot to Curtis

that into Thanks. Is get there relates it hiring kind some year. the additional of wanted further expenses move in the to about we remarks on of it? back-half as think And the as your the be expenses, prepared the Just sounded way pressure on would from it to here? to upward kind of thoughts that right

Mitchell Waycaster

Curtis this I’ll and with the Mitch. comments we corporate on begin hires across other let me on what Michael, on are maybe continued can our in And Yes. and following I’ll space. today. the commercial expand comments make let some few that, just Bartow building is hiring make that a

geographic had I Memphis, as it I spread, other Atlanta, So – mentioned markets you about footprint. our just the across think just earlier, Nashville, and then across mentioned Birmingham

continued We first has we opportunity, and point to that continue, that even asked, see in continue the to early you QX.

continue to commercial the as to continue the We build expect that we space. out corporate,

the business And retail lines also bank mentioned, we’re well, as I opportunity seeing and in business the as in other bank. in

Bartow, to Curtis, as expect expand But to corporate piece, we the more little that bit forward. we So a continue go on the if you on then and want commercial.

Curtis Perry

Absolutely, Mitch.

outstanding and been we’ve bankers been Michael, Southeast. across the markets their adding focus line that even. corporate of on has acquiring our So, long-term deep in XX, years business focused have number in the served many XX talent to segment, the on with cases bankers relationship within And XX over particular already experience team an within prospects major with customers that a or they’ve

credit style with and focused services And of services good of fee-based deposit delivery to that that a we’ve opportunity delivery other the disciplined and revenue to and are Renasant recruiting. opportunity and fee-based present focus we businesses, find the the fit on folks been on customer practice to origination of the

So, opportunistic. in little hiring all good a fairness, bit is people

like And and quarter. I And again towards been so it experience second and of quarter the well. activity my it flows. And drops late latter something over think, off time. year, the I that ebbs look part as That’s or up think hiring a the picks wouldn’t bit just first typically would here

Bartow Morgan

where said on and Bartow. execute I from to the asked me what need new concur the what to keep company thrown when bankers that So Brand we opportunistic we number came out to a with quarter. on growth wanted six the and with I on Mitch to going hiring. rate If as add out that were we I jump Robin to be this to is had would Curtis commercial, with building every back commercial

some associated later one of go-forward, conversation the quarter. began hires million to going came second a hires, he about about in we the and I worth we the you knew quarter. new have those expenses But with a As were if of relationships some Curtis $X.X that to get we in think as with those where the quarter, had the had, of

to not And signaled that those and $X.X quarter. at we exclude think going to the will hires continue have so order the we that are the that the fourth million full interview of we in in future the out be to quarter – keep third them and have to to rate about hire run growth per the – that, future rate as That’s have market. RMs the we in to number

Mitchell Waycaster

Kevin to add mentioned it was to that I’ll Michael, and going well. referred I underscore. I’m as sorry. Curtis

the disciplined we’ve already past production credit just officers I’ll pricing. to Kevin all outstanding platforms it’s that’s mentioned added in remaining available to Curtis’s our team, to, conversations and that say credit an think, and this culture, those relationships, footprint. three simply quarter, have driven that I as I underwriting product We’re by And say simply point, driven in that it’s driven our positioned we we’re the for very as just it’s to And by earlier. would service. across that’s people senior by being company, about joining team,

Michael Rose

did level? upward pressure there on that the color. non-recurring, But from it be that’s jump what’s and seems all other was there No, the maybe from quarter up I great it like And hires expense back there category, Kevin, look then the was the if color, plan. your would some anything in expenses, first appreciate I expenses. circling at all to a because

Kevin Chapman

million item significant was that some Not adjustments. in FDIC to insurance out so $X – We Probably M&A in our and much was accrual out about have most did increase premiums. non-recurring. a the some

the billion kicked increase the the billion over not going that that, quarters, calls going over for noninterest most expense premium us. four one-time, item in increase that That’s QX. that’s that in, other FDIC line is $XX be insurance being in and run rate was That’s consecutive quarter-over-quarter. to with $XX Just in significant item

Michael Rose

Okay. you loan And switching to little that the growth bit outlook maybe a gears provided, Mitch. just

guidance, And low to the single add can I digits and just on the that’d Is low you you then annualized think, if said be to digits mid said or quarter-to-quarter great you single think that basis, this in quarter. back? quarter an what would is fourth you that Thanks. – mid a or clarify? repeat – I

Mitchell Waycaster

And Sure. QX annualized, No, we single-digit is That and in double higher. understanding high That’s an in on to at to this I quarter, QX, or single, level expect mid low point. what payoffs annualized XXXX, mentioned current good the mid And remain with the in single then likely well. as then annualized. that basis. low or

Michael Rose

the on that’s And non-purchase portfolio, correct?

Mitchell Waycaster

net, those I mentioned. numbers is that That

Michael Rose

mentioned You that.

Okay.

Mitchell Waycaster

loan net …that’s growth.

Michael Rose

then me. final for And one Okay. one

XX% we given now about Thanks. as level it guys keeping get job it very Just to five the close hiring can done efficiency like a seems margin quarters. or at point? for think a obviously pressure. you below the this effort, think below you you bit little Do ratio, have XX% good maintain But the more

Kevin Chapman

Michael, Kevin. Yes,

– returns good – our So look guide use being that to whether not question. investments. as Efficiency, we we we’re our hard are looking of as giving it the at or right then off at we stick and

view knew answer to similar. we’re on We specific it. that put into ratio, So the the but this very doing we efficiency question, will your hiring going pressure

were a and get remember quarters view a strategy. payback invest novos we did enough and as to similar XXXX, to and this future but put back we in $X.XX you efficiency XXX, quarter very willing ratio, invest than the that a XXXX of our more If this in beyond, pressure on de we

mentioned, being in or one more As increase offset to will opportunistic Curtis quarters to expense may that exponentially our also EPS return members team mentioned, Bartow than future quarters growth. pick sufficiently But up of what will as two pressure. be

into to So it, efficiency. But also it’s de several that – on we years doing similar going to ago what pressure is But on get recognizing on efficiency we it’s year put into the strategy some fully – next ratio and maturing we’re their as we The next deployed a get novo. very will as the we as portfolios. get outsized of lenders we back-half portfolio improvement see year. the into we

Michael Rose

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

Kevin Chapman

Thank Michael. you,

Mitchell Waycaster

you. Thank

Operator

Demba, go your question from line on your is next Our question. Jennifer SunTrust. possible is Demba your Ms. ahead phone with It’s open. Please is mute.

Jennifer Demba

on M&A so Question at be much. your so interest seem opportunities to hiring significant? point, you thank this given Yes,

Mitchell Waycaster

Jennifer, yes, this is Mitch.

say the in value. internal culture beginning with three not first, XX% EPS, TBV the that past, model that we’ve past, opportunities hiring that exist looked drive that And shareholder alignment than making to would activity. and to business we stated has to would with out immediately back then XX%. As we’ve And earned continue less that sure evaluate metrics being in of the the recent or certainly I return years and and accretive rate of changed

are to the all question, continue Just answer those we opportunities. evaluate better together the and we

Operator

Our question question. next from comes Hovde Group. Please from Will your with ahead go Curtiss

Will Curtiss

Hey, everyone. morning, good

Edward Robinson Mcgraw

morning. Good

Will Curtiss

there were back wanted the concentration Wanted where or maybe go in see to hires – to most a your was we’re – comments alluded made fact, in the quickly made? you prepared broad-based – as maybe you this is terms geographically of or that was, as real that specific of on hires there and

Mitchell Waycaster

broad-based. was Will, and it question, Yes. good

to to have our I lines part us talked which bank, intentional our Nashville, very now grow takes out markets we sometime being corporate various Birmingham, larger particular. about mentioned, As commercial in business. build through of we Memphis, in of for continue also, Atlanta, and large as the But

continue and segments, We retail across footprint. the commercial other spreads to in grow really business which

build an And out past, have opportunity Curtis remain which But Bartow And and the – same very we as intentional we continue out is bank. time, earlier, and and will had where true core described in done on focused what much a on see building as a we’re opportunity. very on at corporate the many that. focused bank, see certainly we commercial we cylinders. as that to the ability We company. a And hit to different it’s

on all our states. those So of across areas five focused we’re

Will Curtiss

just you. progression to And I growth that does – terms pretty you this of include what terms consistent loans? you I that Because it of out What thank last of just want or kind the I quarter, laid assume understand runoff loan – that outlook, quarter. then with that purchase right, of what does the in sure think, in make the, the out. was All guys laid

just So the – the curious the how what for there? runoff expectations are

Mitchell Waycaster

Absolutely.

correct. So you are

you If a back think, And at $XXX I that purchase out. that, think, go typically it as was elevated, million. we the I right quarter, leveled around look around it could and after $XXX have was, quarter, it million. loans, Prior be was this see million. transaction, And prior but to seen that $XXX we somewhat

other past, about they’ve in as So past to those kindly the four-quarter in remain $XX million below average. to been discussed that we’ve the quarter. prior in that the see do level were payoffs We we the

we largely This terms lose where driven the million in place on is that quarter, unwilling bar generally our payoffs, asset deal just pricing. we we were the loan think were company have still underwriting above the about selling gives we And to discipline still testimony in in range I that by that those the or our same and $XX to match. in but that, underlying

and as acquired book, is really as has there, believe is as But current the we’re the production into seeing taking typical well we at stabilization, talent company the driven quoted I be level net as runoff of that Bartow’s payoffs by it in both the that the that the consideration which joined already company those production, well the point to be, earlier, the that’s place in I from, we company. increased the the that will mentioned and joining will that outstanding have

Will Curtiss

guys. the Right. Thanks for help,

Mitchell Waycaster

Thank you.

Operator

with from Milsaps your from O’Neill. comes question next go Our ahead Sandler question. Brad Please

Brad Milsaps

guys. Hey, morning, good

Mitchell Waycaster

morning, Good Brad.

Brad Milsaps

everything. most addressed small items. of wanted have But Kevin, I follow-up couple a on guys You to

You you’ve mentioned a last be phased quarter, or issuances few debt larger. might gotten as get out there that might troughs

So a look take you off. or refinancing at paying might

are Just debt the that process where terms you’re thinking how of in stack? of kind you capital of in kind of curious about

Kevin Chapman

Yes, sure.

got in became – did callable we some disclose the that we’ve quarter. sub-debt third yes, So

July callable became So X.

accounting We’re an on that. stated to in much calling income or rolls X.X%. its Its through we its rate it’s statement higher in is rate X% is process about of purchase debt is the that But That – rate, effective than the rate that the the that assumed effective acquisition. rate.

We’re in calling of the process that.

We do how our that with we’re to the managing capital very similarly buyback.

would and keep got a in of As just ways a active roughly now, of in we future that of to for our expect right we our we if looking into our but be million as little little $XX not buyback plan we’ve in XXXX. well QX Robin of mentioned, in maybe October, bit the as and several active, availability our more are approach expiration as to capital as just to stack growth leverage that capital returns as bit manage reserve capital some the get at

Brad Milsaps

the accretion That’s helpful. follow-up discussion. And then, on to just

you do non-accretable surely. that think about the you income. $X this quarter, aggressive? our had framework? million But in In under envision similar about you all in I provision million way $X think getting around words, over arms other would have you you a but if where XXXX discount slowly, Is could a CECL to think, quarter to the CECL it, you we’re too or a but had had quarter, provision little loan accretion this correct that’s about negative

Kevin Chapman

enhance margin. an result that provision, possibly low possibility. that in would could even you’re think provision enhancing It recapturing net a but flows but think don’t it No, a negative it – how that to would the through occurrence, simply Right a it just that, that now could I abnormally or discount frequent be is be discount. And goes interest income. that that, It’s a I possibility.

Brad Milsaps

you much. that’s Great, so Thank helpful.

Edward Robinson Mcgraw

Brad. Thanks,

Operator

comes question your question. Montgomery. Our from Instructions] next Janney Please Rodis with go [Operator John ahead from

John Rodis

morning. Good

Edward Robinson Mcgraw

Good morning.

John Rodis

back just buyback in comment on Brad’s question. your Kevin, to the response to

active just it the think it just I didn’t in to you quarter, that? Is I third hear or quarter you be in expect active. said, second

Kevin Chapman

Yes.

active QX. As in

think, in as started $X be we active QX QX, in in would million, $XX were we off million QX. to we and I expect as roughly purchased purchased another

John Rodis

missed this. I quarter, to had small. But the a, then expenses guess, amount And and I a expenses, if just very – merger of in sorry Okay. so, you back small I’m

expenses hires roughly So on then then higher was got million. you’ve roughly coming mortgage And by about were new still. $X $XX million you and said

So from but on an expenses core million, $XX good around so got that $XX is a Is absolute operating maybe then million, assume lenders you’ve basis, bit, if forth. a you area? sort slows little and new of mortgage

Kevin Chapman

Yes.

a going of largely So to dependent will on and again, mortgage variables. couple mortgage ebb flow. It’s be –

is off strong. has the production strong. Their quarter started So mortgage

expect, We typically is QX seasonally strong.

and mortgage, will So we if from same bring be expect will compared It remain an QX, we quarter elevated commissions line their opportunistic at means in available. strong level the hiring with be but to QX, which salary may QX. time, on an at equally in to expenses

trying tied $XX going, are than – million good being that have moving But to the expenses to being and where in hiring, depending being tied bump are expenses you expenses are successful expenses, where with with revenue could and debt pieces. But mortgage. we of producers the has costs. could the ins what rather million, on quarter more forecast million increases see range. happens $XX – outs, our being up or the the expenses relatively at just it a are couple So a If mortgage stable $XX in in we to

I going burden anticipated to expect, mention, in we producers. that. really an the revenue ratio get we salary did expenses But efficiency that somewhat the leverage forward to investing We insurance. be in as it’s those going increase As did that have FDIC

revenue and million, if to the the number, the it’s weighted at more are expense call But distribution really so grow hiring that in XXXX. $XX million, or pin towards successful being hard it, revenue pace – a at faster more we being opportunity being producers to $XX a of And in million. $XX

John Rodis

that FDIC correct? premiums And higher away, the doesn’t go

Kevin Chapman

Wish it there thesis not. save did. kind that future might It show this quarter. rebate, The We’ll does didn’t of up rebate that for coupon be that a quarters.

John Rodis

year. the Kevin, sort that rate sort around final a one then good the tax And Is for XX% first-half of level Gotcha. running the been just forward? going just of question, on of

Kevin Chapman

right we are where that’s now. is, It approximately

good And so tax is that XX% range a rate. effective

John Rodis

Okay. Thank you.

Operator

back call to additional over no McGraw to Robin like [Operator turn questions. closing conference I’d for Instructions] I’m any the remarks. showing

Edward Robinson Mcgraw

Thank Corporation, and speaking again to today. look you, time to Thanks. in forward us appreciate We thank joining you everyone for interest Jamie. we I your soon. and with Renasant want

Operator

conclude today’s Ladies that thank does joining do call. presentation. and today’s for conference We gentlemen, you

your You lines. may now disconnect

Renasant (RNST) 23 Jul 192019 Q2 Earnings call transcript