RNST - Earnings call transcript Q4 2019

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Operator

Good morning and welcome to the Renasant Corporation 2019 Fourth Quarter Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Kelly Hutcheson. Please go ahead.

Kelly Hutcheson

Good morning and thank you for joining us for Renasant Corporation’s 2019 fourth quarter webcast and conference call. today of call team. executive this in are Renasant’s members management Participating

involve in update performance not recent limited A We fluctuation, are we rate the of you actual other results or to and call other filings reflect factors our to forward-looking during which unanticipated discussed Securities remind let regulatory results Those changes, with changes occurrence maybe to forward-looking future statements. and expectations disclaim factors and some statements, portfolio Before from me assumptions, any or or comments interest to Exchange that differ results begin, the statements could operating the of number factors time. events changed Commission. of obligation revise to materially over our forward-looking expressed but risk cause the uncertainty. anticipated include, this in

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

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

Robin McGraw

Thank have momentum joining with you, solid the and XXXX. all us Kelly. results fourth about thank Good and into for morning, we year the everyone am today. you the of and we quarter We closed heading I excited

in our at same even later, in the second some standards. half to their beginning we and credit As steadfast to fourth our in competition year – we our a loosen in particular, underwriting have the while strong in growth of we enjoyed while discuss seen of quality remaining commitment more competition quarter robust time detail the loan the

for and Our the return the was assets, X.XX% with X.XX% average quarter on year. exclusions, for

for and on tangible XX.XX% for quarter the year. was return the Our exclusions, XX.XX% equity, with

prior repurchase million $XX the of began common and at announced following a $XX treatment $XX.X quarter stock of $XX.XX. we we ‘XX. average of of of of October that quarter, as XXXX average completion quarter the end $XX.XX. third the stock million repurchased We of plans, for notes we during a subordinated a begin the stock that new part have out phase weighted common mentioned redeemed quarter in million current which under at acquisition at to million of repurchase preferential our the Year-to-date, price We capital plan the fourth second price During plan. which $XX brand repurchased plan, the previous under we weighted last our the assumed our

‘XX dividend quarter debt our the $X.XX while returning for our of all redemption during shareholders The support repurchase of increase our increased by also strategy and capital. to ‘XX. value plans, deploying prudently the our dividend the We second

economic As our we to manage with strategy, light coupled face in our shareholder capital of continued business of look profitability core we effectively ahead to XXXX, drive to growth management and we the pressures continue believe returns. will efforts that this

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

Mitch Waycaster

Thank Robin. you,

in ‘XX, fourth results $XX.X quarter income compared of the Looking the net $XX.X to at ‘XX. for our million was of million quarter fourth

diluted respectively fourth basic $X.XX quarter quarter. EPS the for both ‘XX. the and $X.XX of Our diluted for EPS and and $X.XX fourth were were Basic

EPS to new by the servicing $X.XX. expense after-tax the we rights after-tax the related on during were for $X The able fourth decreased quarter, third these our mortgage adjustment that includes ‘XX. income million the million company valuation ‘XX. have in the approximately This recapture During production the of diluted million diluted quarter our we recapture to joined increased and recognized during team Further, quarter. of $X.XX EPS $X.X net to fourth by $X.X quarter strategic expense quarter hires related members

sheet, of our $X.X loans $XX.X for balance end XX, as to Turning at focus billion were $X.X quarter. ‘XX. $XX.X at ‘XX as portfolio billion were loan billion held September our compared total our from December includes portfolio The XX, at at during investment net the assets at December on Total representing ‘XX the a to of the compared a year to XX, quarter XX%. loans balance consumer transferred basis non-mortgage the of third billion annualized linked growth of year held-for-sale end the

Excluding these loans, net for XXXX. X.XX% net was loan growth

across of results production Renasant this the the for year on the team during quarter. are in emphasize noted for seamless to on hiring I this new talent been to continued show our investments have the our just significant transition to and and partners returns our has footprint We our expenses. feel investments beginning these our impact in the We

successful I generated want fourth million during year. the legacy loan production both the quarter. of the new our was to growth emphasize quarter by our have entire employees been in team and $XXX executing $XXX million during production that that hired for though our production new team strategy with Total hires members

to for All and opportunities hard the returns across build our in created plan markets legacy investments lines and our will the have the other all all in business. and growth we quarter. disruptions we strategy, have present arrived both consistent committed our still entire our the seek potential high plan support ‘XX and have towards new teams to we in double-digits events loan with been part for talent and other producers, single themselves for yet or disruption their add We in resolved expect our of be to and work growth to market single-digits target with is quarter our Further, opportunities guidance, first the by our not that of to company on ‘XX. Notwithstanding and grow the footprint believe team. growth were to our sooner talent the will have latter continue out evidenced of across of which than mid to to new our expansion results low that previous anticipated the ‘XX consistent for net

the emphasized success team in side growth. liability were with the loan also growth, respect have of managing to but to balance ‘XX the we support We profitable in successful our sheet of

the to growth ‘XX of interest up identify that this the in bearing were the non-interest year-over-year of $XXX we would all yield deposits bearing rate highlighted to end the mix stable emphasize of sources deposits evaluated our fund as Total exceeding XX.X% further, base deposits with loan achievement XX% ‘XX. in at our To non-interest low million deposits lowest during represented compared at funding proper and the to We remain committed end year. total year by volatility deposit growing cost a cost. to growth of

heading profitability come XXXX strategy into our will growth to to our optimistic momentum of into and great about have continue by both XXXX are the expect. growth sides pricing on our emphasizing shareholders balance and and We disciplined in remaining deliver sheet beyond have our value

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

Kevin Chapman

by problem to relatively purchased Thank was million interest core to was million, decreases quarter ‘XX basis. income yields solid of million for $XXX over is for the accretable Net the a three recognized points quarter $XXX million on the and loans interest quarter primarily you, Reserve since on interest decrease in a basis $X.X on period. flat collected quarter. company of following ‘XX Overall, compared margin third prior Mitch. the compared of rate loans the The income in had linked up quarter. was the The as yield $XXX.X driven asset a by margin the same August. decline decrease fourth X earning Federal Net

margin, on growing deposit continue to non-interest our to bearing execute and our order strategy of managing mix cost In bearing and we the on on interest mitigate impact liabilities. of and deposits cost reducing the focused our

of we a over X result, previous basis. were deposits basis by the the was total funding continues lower fairly our to a from be a Non-interest of able of income linked XX% points by to revenues. cost source and income total quarter. the income on quarter for representing lower us XX points cost our basis great of consistent Non-interest As our

As in reduced and fees deposits and of our non-interest the which by Durbin fees loans imposed by during approximately $X the quarters. discussed QX Amendment, our and on limitations the on QX interchange commissions reflects each income last quarter, million

side, have positive mortgage adjusting when a banking the income experienced typically strong On we quarter even pullback had the QX. seasonal in for

previous During volume our quarter, quarter, but which down $XXX mortgage quarter the compared million ‘XX. the fourth from $XXX to up when million, the of was was locked

in anticipated we consistent current and $X.X to accounted During mortgage the production between billion during for $X.X XX% our quarter of compared XXXX. volume remained commitments rate interest has in which locked quarters, in is fourth XXXX, Refi environment. billion the

of we that Mitch the million as during mentioned we adjustment and mortgage valuation servicing quarter, Additionally $X.X QX. recognized right in recaptured

between remained expense quarters. consistent Non-interest

and adjusted efficiency hired and Our compression mature. producers to the with have our our their on impact Durbin for to cost during to the mentioned success in continue pressure along XX.XX% ratio. we we the Amendment discussed the associated of XX.X% for year previously previously, the results show was portfolios have margin year. put as beginning continued efficiency ratio our quarter on with the new But is The producers

the this interest expect in not in We also yield investment will only net return but to our income, ratios. efficiency

annualized strong end, the internal lows. our as ‘XX quality to provision fourth or in were provided roughly watch metrics percentage overall historic at days of an we list or quarter. quarter million All asset quality due total past to on the are our year $X.X in Shifting for XX credit a NPAs, to million $X.X Net metrics, continued charge-offs remain quality, assets. basis near credit loans of during XX X including points and at our basis loan

move remain maintain our quality. a we year, commitment into we new strong to have – renewed credit As to

successful underwriting remain margin our we to continue will to business over disciplined in committed our and which model, will proven and years. We structure remain including has the standards,

We same reinforce of that our to hired our our addition producers have talent to emphasized support commitment quality. strategy, to credit time have the we you would have team like remind we that added but the growth to credit to the at

or more to for specific details our I on you financials, information and For ratios. will press our numbers refer release

Now, any the for Robin to I call comments. pass closing will

Robin McGraw

trajectory our and for this Kevin. we on We and you, by all and the of finished Thank can while value XXXX quality. focusing about momentum time cycle same growth for emphasizing excited our year at operate profitability, we closing, provide stakeholders. the tremendous are with through In

Now, turn Carrie, back for you and questions the answers. call I will to over

Operator

question-and-answer session. [Operator begin James. Raymond from first We of will Instructions] The now Mannix will come Daniel the question

Daniel Mannix

Hey, morning guys. good

Mitch Waycaster

Daniel. morning, Good

Daniel Mannix

still range loan, if growth or front, that on wanted guide low loan the quarter about holds that single upward just there to XXXX to wondering speaking so for of with some now? just pressure Yes, previous on double-digit start great momentum, the your high is

Mitch Waycaster

in million More I particular to as Yes. in mentioned going Daniel, possibly production in opening the trending as as from up commented expectation million $XXX that about we production single more we I QX, growth I did had into strong in have we a $XXX forward, talk low and have would the and double net QX, high thank of some still will as you $XXX QX particularly the experience we mid little earlier but year. we loan to into mentioned, later million single as I generate look we QX. the in that go pipeline was quarter, a comments and the

an amount that increase additional total see or bolstered hires $XX same $XXX by new or group XX%. million In by that our did that production. QX, of million XX% QX, from we During

have well, later would our to QX continued again or overall, good quarter I well, loans on all we expectation are as cylinders closed think production good but the originally is and in expected we I a quarter in seeing strong we business, go legacy from as production. into the business be did two equally simply that just could as lines, think whether that but We corporate. some quarter, hit stated be see that a was had I also important commercial

million, $XXX as double get low QX but trending single We to possibly mid see have more to high a ‘XX. continuing of pipeline strong single into we

Daniel Mannix

was what still then you I Got of fourth so the know potential you pretty I that continue that So drag going a are rough that looks to that the it. I will front, expect first what guys of did that to mean, hiring ramp in kind hires That’s you quarter, like and fourth this the and like efficiency talking ratio? in XXXX improvement of then could helpful. active we expect corner bit that actually start impacts up it guess about quarter, of understanding in the impact And a is do mentioned mentioned $X.XX kind on pipeline, offset year, but turn that previously it in XQ? hit the just how little it sounds range you quarter, kind the to

Kevin Chapman

to Hi, Daniel, expect that this continue. do is improvement Kevin. We

from away So teams this looked out. we all as team generated hires. that we I as I to that it at a where going is that welcome opportunity welcome portfolios in been average have, we and in and quarter, And opportunity to but hire the just at their either, shy year, wouldn’t look by that’s QX, have are brought XX don’t we but did at the would the pointed above the think that going look me it. that’s we we if right the of And they to also just roughly to are although relates are better know don’t are we to we them brought would business third another we to contributing XX% approximate a were, let company. hiring breakeven fees as in they the that in, or say particularly now it new the that revenue, the

get And going that costing over breaking into that company. so would point we crossing to inflection we and expect the of were that with of from as then more continue hired, to contributing even QX to

see momentum portfolio deal. come Investors So with that. we the to just in

hires. But manage also of to As the I make expenses include new our with of of these we more will that part is that There I And and added case They expenses stringent not expenses. some at are some would clearly, very hires. have is wisely. to in going run-rate expenses investments. are be don’t there that we our look ‘XX, amount goal our do, with we going the are single far return in out felt hire so what could that – get hiring capture not run-rate, we would to going want be. the just what’s we we to call we to XXXX to to that the did as are as expectations that show in reconcile we amount know the these and the point set we every for expenses just be

to new on jump excluding although just our going within to and add again, at the put we be invest expenses it meets are if our expenses look our we may As hires it if on but X% a the goal increase, keep we talent we immediately, return see to pressure metrics. opportunity that

Daniel Mannix

me. got Yes, it. gentlemen. Thanks Great color. That’s it for

Mitch Waycaster

Daniel. you, Thank

Operator

KBW. The Stuart next of question will from Lotz come

Stuart Lotz

Hey, guys. Good morning.

Mitch Waycaster

morning, Good Stuart.

Stuart Lotz

the nice Really the obviously to wanted into dig but side, bit a wanted here. quarter, I little guess I I on margin Kevin, loan –

loan it points, quarter compression to down the I core on think able core also basis did points your side. or like the looks and X matched if then match you deposit X heading are into into that, guidance basis XX that yields we about were but

this and Fed like remains pause specifically for is quarter into what XXXX? look then sorry, if of the margin what going that on core and margin will XQ outlook kind So throughout your, the

Kevin Chapman

if reality environment. on pause So is, even a the we at lower the is are Fed that still rate is

so in environment. are – the we just compression as seeing rate And in yield flows lower headwinds just at we come cash as re-pricing are assets seeing just re-price side, as on

expectation the compression between on for going are It So pressure could offset margin. are is that goal we would some growth run margin additive downward basis also and have income. our just X quarter. to to put might the a and to is the the reality sheet accretive pressure interest funding that growing we no reality net on it on but continue that rate to the be and with X that in changes, margin are the somewhere there that the short If points be balance side,

run, short noticed, have did a we bit. borrowings, in FHLB if the – our advances our you So pickup may little wholesale

the capacity are growth asset have until growth FHLB that normalizes having. are we the We using the and on with being our from a bridge as deposits somewhat selective we deposit

to again run expected margin accretive interest downward fully And that’s income. put on to the pressure some so but in be short to going net

Stuart Lotz

production coming loan it. Got yields compares the guess to color currently? curious where guess strong how I I year, on that the are further, this production there. portfolio the weighted the books I And was average Appreciate and new of

Kevin Chapman

Sure. Great question.

reneweds and coming The new in to are So into XXX XXX range. the core are XXX yields range. portfolio

we shift am get think to So, that basis growth net curve finding margin try not asset only – strive also I that in talking focus right compression am is absolute maximize about. I we the that’s of over yield just impact need yields mean, can, asset proper but between that compression interest the I internally to to the the year the is just level bringing that down, of every our mitigating every point, that have fee we but and last in experienced balance recognize that – is Clearly, that, I the income. that to lift the

Stuart Lotz

I turning the nice things Thanks outlook color it. full your overall is for business curious all the weaker what fees quarter Got your outlook and for year? guess given fees, obviously mortgage, for XXXX seasonality, I I the for guess there. am in pretty from considered, to that just

Kevin Chapman

fees from of see fee don’t standpoint, or in move income. mortgage the a just outside banking really our So lot of volatility

As year. mortgage I mentioned, great had a

at to perfect a the QX we production QX continues at I as was look levels. a XXXX, QX. looking was hedge, hedge but just that appears it good on margin strong it am pressure against remain although the saw So, we not at

periods production. driven other environment. is above to the rate in QX QX are average we by weak, are the typically quarters This low we where compared and So, seasonally seeing

a if to from January, of are January. rate we year days to due mortgage on just stay the environment the where in first and would just we seeing what expect so they purely from production rates continue strong early are And XX through

Stuart Lotz

businesses of other this insurance business as where does the in or your it’s kind any outlook single-digit usual – just is wealth growth? businesses of those fee else, whether growth year management, low with for Anything or your kind steady it

Mitch Waycaster

Yes, and X% wealth revenues, in on ‘XX a would Actually, the will year, and total insurance X% X%, under is color well. range insurance. X%, give assets I about both management about Stuart. Mitch. we little wealth up to increase saw this be This as

continue Leading benefits has our to year, expand positive wealth trust this very employee seen particularly XXX(k) our footprint. with business operations. by the that asset brokerage followed We across management in growth products fiduciary

and So about we insurance, across line but we primarily opportunity currently a in but of Mississippi that steady continue continued integrating in expand with footprint of that to opportunity look commissions. a this our those better those business. of commercial to We year lines continue our and business. lines relationship both as X% increase both growth see within total do our to in footprint, particularly managers, relative That’s we job business see

Stuart Lotz

Mitch. Thanks, Alright.

one for me. last Sorry,

kind Street rate the year? all that good business now or your I what’s think a of growth flat this together, fee tying for total growth. Just core has pretty

say, up call So see X%? we kind that is single-digits safe to even it it X% to low the on to could your commentary based of

Kevin Chapman

single-digit. that that reasonable assuming we where mortgage The project assumption, income, stay have And on the be is going right up Yes. the and rates rate if I would stay rates they based low see environment but that change are flat a wildcard has put on in the now. to pressure the they can mortgage slightly that mortgage. any we in year is to

Stuart Lotz

questions nice my taking and quarter. congrats a for on guys thanks Well,

Kevin Chapman

Stuart. you, Thank

Operator

come question of Olney from next The will Matt Stephens.

Adam Freyaldenhoven

on Adam it going? guys. How is is Matt. Freyaldenhoven Hey, for This

Mitch Waycaster

Hey, Adam.

Adam Freyaldenhoven

to wanted the start on Hey, so LLP expense. I

strong from credit the XQ was much So the just amount, negative migration of organic versus growth? how

Kevin Chapman

Yes.

growth. credits the based reserve just it four down think list $XXX,XXX just was just watch force I So about that And was felt review, about on of breaking about that to just down our that rate The downgrades. and we was was that risk $XXX,XXX. on $XXX,XXX. the made prudent provision, rest provision of the up migrate That it

model. and basically math take if growth provided new of between our So growth. just XX somewhere growth million, $XXX typically net and the against basis million, provision on way provide roughly we in just points, works the XX about points basis you our XX that’s $XXX We that typically

we So, it going the majority and look is we way to to we that’s that the the be have the for as vast future, the model the growth we related we to the of was in providing have work out will growth. that incurred as quarter it growth,

so the outweighted growth it providing will maybe forward. bit to little materializes, just related And a provision be as

Adam Freyaldenhoven

basis it point with provision XXXX on and range new drive XX that XXXX higher that staying robust So maybe? in little growth the a could

Kevin Chapman

effort – be lower, It’s assume. range. I CECL, variable a think in And the on and different based rating, under a to cases the to all current a slightly slightly it’s [ph] maybe reasonable risk it going but higher could that’s range in some that’s but be reasonable think may I

Adam Freyaldenhoven

on K? update expect there CECL the is in for that anymore then you And can CECL or provide can we

Kevin Chapman

So robust in previous relates CECL we but some what mentioned calls that it to Day have we allowance previous in or X% X, be K, and post-CECL the the really expect we disclosure will range. have in discussions to our roughly is more as

to. that’s so guiding are where we And

accounting, land credit to going to around our the basis that’s allowance But loans, impaired total of just out of capital. that purchase to accounting, by the re-class plus coming roughly impact the being some the we X% rest XX purchase funded of of Some expect be or with have minus we points the overall, loans.

Adam Freyaldenhoven

another phenomenally That’s XQ, range pretty the X% it’s X% to last assuming helpful. – growth operating question hires, to difficult for it know nail me not quarter range And then on all there is down with like but I the you. is expenses, new realistic? thank Okay,

Kevin Chapman

arises advantage available. hires we be on goal of as would would they it higher become looking our if outside I the the be to would side. opportunistic of that be are you say Again, year-over-year, take If but stay X%, again, opportunity may to hires, within

Adam Freyaldenhoven

question. you Okay, for taking thank my

Mitch Waycaster

you, Thank Adam.

Operator

question from next Brad O'Neill. Instructions] of will Sandler The Milsaps [Operator come

Brad Milsaps

Hey, good guys. morning

Mitch Waycaster

Brad. morning, Good

Brad Milsaps

third mortgage, weak guys, I and rates thought follow-up an of to XX%, wanted XQ MSR think your quarter the you is know maybe mortgage just than if down were seasonality. you make typically be is pressure for sale have Kevin, maybe talk more on been activity, it or the quarter which would fourth kind maybe in I but I for Could quarter? the more some loan the in seasonally I two Was that typical bit a the else little given quarters? the about on between moving than of might parts the gain margin is anything more even they the on driving the change adjustment

Kevin Chapman

let bit Yes, a give about little I will Jim Gray detail more mortgage.

Jim Gray

of There Actually, Brad. the X fourth to through which have lock we about during slowdown was X held the did between a mostly Hey, slowdown up it and margin. in had got pretty to just we into activity, middle been in about our We as Year’s. basis period It New kind slow generally that particularly is This the that fluctuation week margin strongly pretty Christmas difference up strong of then. down. always December. actually see holiday point a quarter. It

remained back our through X, kicked all January lock However, January. and volume up has strong

I to period. holiday that can we it attribute So just think

Brad Milsaps

MBA brought maybe better you folks you a you you you And than bit to would on Okay. the what anticipate XXXX? in from – with lead could believe do FBK, the do would forecast little

Jim Gray

income. wholesale banking where both and are realizing that anticipated in is of volume FirstBank is we what we – our That be fully the definitely anticipation out will to we able that

out channel $XXX Our starting channel to We our is direct consumer was this consumer mature. of year. volume million this – direct

to are next be this stronger We it anticipating year.

all we was shift by leads. more it As pretty from well last off, external this year, driven

starting mining our consumer see own we things, internal we leads coming database some is now intended do are We benefit doing where more to client direct. really that’s which and generating the from

as to So channel, we more of are be our talent. our a potential origination all disruptions have XX, wholesale. to well that of next to continuing including year the right first, of then probably And South pick different consumer wholesale working direct able given contribution now are markets in we to have heavily we the recruit, Carolina piece up anticipate we to recruits our in entire and anticipate as XX markets lot continue

Brad Milsaps

And line the quarter, maybe Thanks. expenses, just to know down the $X.X I FDIC had expense was million Kevin linked true-up in item credit. on some Great. with the other third follow-up you quarter

this drove else this would that year, decline? – that past Just that quarter curious quarter anything fourth in the

Kevin Chapman

Yes.

some just we So another, have volatility.

actually bounces expense As around. see, we XX account some with is and be that. expenses more but we linked little just some how whether slightly, it’s held employee there if bit other I and optics salaries of production as growth. did is that. been have the salaries, benefits increasing off of re-class really, there what to the in number to we volatility on re-class that’s doing mentioned. we in employee happening But and done. just not that you that that hiring and going into to not benefits all you up category, the what’s at salaries, a this can is that’s volatility but want quarter of just Overall, to just FAS – the are And in exclude looking There really now, or that mask there need because of We we we volatility because volatility for employee benefits

Brad Milsaps

been it. follow-up on then Got And had you have under CECL quarter, operating the the $X.X this discussion, final CECL million implied just for question Kevin growth. Kevin. would Thanks, provision to

it quarter the kind incorrectly to on a resulted you of or provision However, relates had how CECL about the for million as you of income. in kind going of $X approach fourth guys have that Would that non-accretable am negative based methodology forward? also I thinking

Kevin Chapman

parts, accretable I don’t but picture recapture a guess now. provision recaptured, provision it was resulted would knowns, know from looks – it right million a have non-accretable what take have of negative provision. would moving X.X%, provision on in of that the clear as I if been, yes, a the difference lot It in. provision a net at would $X so roughly that just would what our we it have have million that for we would in we have just let’s if a versus $X of have resulted but Of the under – two been X.X% which look CECL,

Going forward, than production it’s all the relates mentioned I roughly provision. allowance generate now, to right in it for basis going to to what you is our any we to numbers be, points downgrades. as providing CECL XX we new result different current of outside under are going

X%. going I is As the mentioned allowance to somewhere around land you, to

X% for have just that $X But have the maybe scenario. so that just no being a is there that to simple have X.X% in if equal, things as I million been resulted will there parts, provision just it of been may a opposed as negative. provision $X would recapture points production netted been a have versus would And that would let’s our amount number. provision So those would million the lot that said, XX I provision is have on or moving math volatility also X% say in say been allowance under our of slight that have of of to would basis there

credit performed on better, that swings the this past number. nonperforming And that in seen have recapture. just assets. have be underlying year performance It’s that’s and they dependent just the the nature of we perform If large better. seen historically all the or you in of will have As they there impaired

continue impact had be than to rather to better, perform impact we have margin. to there provision, they so And a margin. If that would positive positive

Brad Milsaps

Thank I really you, Great, appreciate that’s guys. helpful. it.

Mitch Waycaster

you, Thank Brad.

Operator

John from The next question of come Rodis will Janney.

John Rodis

guys. morning, Good

Mitch Waycaster

Good morning, John.

John Rodis

too all we things should yield yield how basis not maybe points Kevin you – your to sort the fourth margin detail, the you I under X far and equal. we saw back level and of that some think to impacting accretion third as to – margin, reported accretion just comment going should of in core about What on you said so guess of if to pressure, down into the Kevin being but I talked X accretion in added XX, as XX assume XXXX, just yield back quarter, much get forward? next think points CECL basis about

Kevin Chapman

Yes.

off difference right non-accretable some but that assumption accretable and of the margin to just that sake for is out. non-accretable this in the looking time. the accretable The of – maybe discussion just just yield So most the will the been is since yield, a continue that now pieces comes incrementally of just out. trail going course date will calculation, that’s decline What that non-accretable the over CECL because difference under in acquisition out of has at that’s the accretable CECL and now to comes remove of of difference under is for is what’s year. declining to remain all balance – over That’s re-class something the for right the yield that’s there, part

to compared would I follow-up in As be how accretable the as may to be I to in that recognized it XXXX, seen had need to you relates what it have you number yield, it similar but much declining XXXX to versus think trend relates we would with that ‘XX will with ‘XX. on an would a amount

John Rodis

And is tax what sort true-ups of just sense. Kevin, year? of assuming XX% in the makes one quarter. one for other it a next year, some it and maybe XX% rate, first year-end closer was used rate stuff, – fourth the am I lower to part was the good on for That

Kevin Chapman

XX%, matters opinions some XX%, on. XX%, of some did that Yes, is We we favorable got couple There state and yes, have true-up. results XX%. a

And so rate a of bit be that that range. true-up a tax to XX% there overall is little in on to expected XX%

John Rodis

guys. Thanks super. Okay,

Mitch Waycaster

John. you, Thank

Operator

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

Robin McGraw

We and and Carrie. you, appreciate interest you. again Renasant you forward to Corporation soon. speaking in everyone’s look with Thank Thank time

Operator

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

lines. may great Have now disconnect day. a You your

Renasant (RNST) 22 Jan 202019 Q4 Earnings call transcript