Renasant (RNST) 28 Oct 202020 Q3 Earnings call transcript

Company Profile

Participants

Kelly Hutcheson	IR
Mitch Waycaster	President and CEO
Kevin Chapman	COO
David Meredith	Chief Credit Officer
James Mabry	CFO
Jennifer Demba	Truist Securities
Michael Rose	Raymond James
Kevin Fitzsimmons	D.A. Davidson
Brad Milsaps	Piper Sandler
Catherine Mealor	KBW
Matt Olney	Stephens

Call transcript

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Operator

Hello, and welcome to the Renasant Corporation 2020 Third Quarter Earnings Conference Call and Webcast. [Operator Instructions] Please note today's event is being recorded. I would now like to turn the conference over to Kelly Hutcheson of Renasant Bank. Please go ahead.

Kelly Hutcheson

Good morning and thank you for joining us for Renasant Corporation's 2020 third quarter webcast and conference call. today of call team. Executive this in are Renasant's members Management Participating

risks are we many actual results be other the call involve that please regulatory results magnify Obviously, COVID-XX to likely forward-looking been forward-looking statements. statements expectations uncertainties. our events which any Before obligation from assumptions, occurrence to other we note disclaim magnified or impacts recently of this us. to interest changes and of differ begin, the corporate undertake could or to will recent section. factors Exchange many changes, that in our future comments materially during statements, Securities expressed of and and impact and Market & has specifically with continue our site, factors cause the well the to pandemic, Furthermore, are no over revise to arrest federal, or time. reflect Commission, in pandemic forward-looking There update state all obligation anticipated continuing measures under effects local will We follow-on results these changed has including Investor to are portfolio as factors Data the that situation unanticipated the on which discussed posted COVID-XX and performance the the the filings release, will Relations future factors the tab and taken the from virus, results. the operating not impact include, the and Other as significant pandemic but the to, of limited our of this condition factors in financial most our News renasant.com earnings rate filed fluctuation, operating

to and Executive non-GAAP financial turn release. may in most our now, of President morning over the our found the call the Officer, some measures earnings comparable Chief financial non-GAAP addition, discuss Waycaster. this measures may measures we be GAAP reconciliation to A of can measures. be the And In Mitch that I'll

Mitch Waycaster

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

brilliantly believe to with to of level the seen loan decline forgiveness our and clients have of has and we best over clients as the certain Before third first our broadly I It our Economically we while offer separation, sectors economic actively the Kevin the activity markets is We an find physical remains on deferrals uneven and Southeast, are into optimistic. on continues uptrend. hurting and Mississippi I slowly a few a are a of $X.X the team process. a The for grown facilitated improve. dramatically. this region for during cautiously Likewise ways shape, our have the bank comments most am in good the for fragile PPP Despite to remain we Throughout across employees. was and during to in pace the from coast want the the period. now among of relatively companies engaged extraordinary are businesses opening consumer I gradual to but employees borrowers closer guiding we always deferrals, results Overall, River and markets, pandemic. runs the quarter, the we Jim part came for speaking, recession through high team. And this few pace, for them stronger and plan responders. of many ago very seek levels while loans Atlantic service in economic proud are that responded months discuss have Though efforts our in billion. XX,XXX regarding excess our at which our varies the and only provide still persevering. been adjusting their our

to over it turn I’ll Now Kevin.

Kevin Chapman

Thanks Mitch, and good morning.

conveniently strength of and earnings fee in million to all quarter The of to our serving proud $XX particularly growth, income We levels was capital mid-October deposit our of technological mid-March, improved be We branch improvement. $X.XX to need clients by from by our more delivery and and remained we Health our third with per being for or pandemic to highlighted deliver guidelines, lobbies The significant phase in employees the strong investments. metrics made and quarter our build completed meaningful After clients our those traffic channels again. full of are pandemic of or banking, reopening loan the share. diluted are consideration the while investments allowance and stable we since a and saw efficiently. before close mortgage all credit CDC and credit benefiting highlighted services Safety regular pleased report across are once losses,

we loan continue online or As by to see of the offerings significantly technology almost offerings we adoption application every branches, our reopen as of customers, since the our onset pandemic. digital, mobile, our increased

products to in investment to lead future new encourage increases our continued will utilization further in rates. adoption intentional efforts expect and We

reduce As action any impact our months run And related to cost we but nine of year, we our this base opportunities constantly further efficiency we periods. tightly are for the future expense the to rate, elimination reviewing so. monitored continue are taking have first pandemic for we and expenses expense and economic recognize do evolve, gains. in must Through

discuss who while leverage, plan We the in provide we our and of we quarters. the coupled will it expenses quarter in to leverage the operating reductions loan how at future continued and I improve quarter. must to reducing turn on our grow operating will believe now However, further investments, roadmap a over Jim, production into with time some same growth maximize expenses. to

James Mabry

We our commenting core to for I Kevin. capital you, prioritize themes earnings will strength on deck key Thank quarter. the and the decision while asset funding, quality, refer making. and

a the or to of continued up and in the growth review So I X.X% start we're sheet. $XX balance will with see quarter, Deposits million annualized.

and that virtually has most funding. no growth billion, has deposits XX% been the non-interest are and are total company of up wholesale deposits in accounts. bearing For year, the core $X.X of

loans During the billion. quarter to $XX.X grew

PPP to in PPP annualized see likely for basis. the Future Excluding the accelerated and in to associated quarters result up are loans are income be deferred annualized and X.X% declines for an year. X.X% quarter, on recognized the loans

quality at measures essentially XX basis were PPP, previous the from on quarter. XX XX low Slide levels assets, through loans, reflected days Loans to modestly compared up the total of XX which unchanged quarter. were due XX are excluding points XX. and past excluding represented Non-performing and remain of basis points Asset represented assets PPP, second to

of XX, Additionally, loan deferrals continue X.X% represent loans excluding PPP. to as of October outstanding and decline,

loans levels, of prolonged increase a credit uncertainty for economic sluggish led and The PPP from XX recovery quarter. a Forecast for percent third of end at second points allowance for an the high to GDP the growth, general as basis the the rose unemployment allowance to prospect quarter the losses. excluding of to losses relatively credit X.XX%

as decline was an Reported driven assets the by up and quarter, million in the the was second average were quarter was from second marginally quarter. net and assets, on return equity was by quarter. quarter on which return for margin third X.X% increase somewhat to X.XX% Net compared X.XX% This in for and respectively. $XXX For XX.X% tangible the in margin. was interest income interest earning the offset

$X.X by continued XX, Slide previous strength on driven the increased from largely non-interest seen and quarter income was mortgage. As million and

for second $X.X to ratio in showed to quarter-over-quarter. million, million was $X.X related expenses and The gains service core expenses the million Non-interest in was XX% down charges offset insurance, quarter. production. were also $XXX.X wealth, the efficiency expenses which a increases COVID our tied from mortgage Additionally, somewhat and division, in to reduction were up quarter

While there improvement now are call Kevin as signs the area noted, over the to back for I will of efficiency is of an focus Mitch. company. turn

Mitch Waycaster

uncertainty In we fourth began XXXX much clouded that the has Jim. you, of remains closing the quarter. Thank as

will and will I'll our our through continuing communities We clients are the and now operator economic value accurately shareholders. a the the good will employees meet commitment to to stakeholders. and have cycle, for to to provide to pandemic of on our our safety the our in But and impact to to being long-term turn on understand the the over of and And continue predict our of Q&A. citizen support security call our then limitations unable activity the success this needs

Operator

the Truist Securities. from comes first question with And Jennifer Instructions] Demba [Operator

Jennifer Demba

actually expenses. and said you I path the the is growth that - Kevin to think said better Mitch loan operating through leverage

just you talk term about can the outlook So for both? near

Kevin Chapman

morning, good I Jennifer talk and loan with up growth first Sure, may about follow let then Mitch expenses. I'll

Mitch Waycaster

quarter. changed to pipeline were $XXX then not as back we million quarter, looking a in quarter, last XQ go quarter. on into And into and going this we at we on go the the call, a million we as lot I'll as just pipeline third of today, $XXX Jennifer, reflect production similar third discussed

business but our to continue and continue would pipeline flow and we So see cautious cylinders. lines. And good, say hit to I across we deal on multiple markets

pipeline at business commercial Tennessee, that Florida and lines. in I corporate in As the XX% XX% and and our Alabama in in Florida, in Panhandle, our Georgia look Mississippi, Central XX% then XX% is XX% in

for in that $XXX and just a that the So in question quarter We quarter. with somewhere ended back $XXX million pipeline and the the about production in We to million $XXX third with which quarter would $XX prior production, indicate to million $XXX range. your $XXX would million. compared million million, are pipeline expect growth the non-purchase the

business good in and flow, about team, company mentioned, from earlier I continues deal see So year this prior of geographies, of team. continue that and those that particularly as come our production the to the lines from in quarters, various in my joined to XX%

about lines. again, we million. to So this business payoffs of this I million. versus and did average quarter see $XXX footprint in were add $XX relative about increase $XXX prior million an across various would They broadly the just payoffs,

is course net is until the we difficult of on resolution, So pandemic somewhat the give And a see clear a pay-offs sustained the production. a results Kevin? picture variable. to of

Kevin Chapman

year started as headwinds. before Sure an what the look with But we This year time, expense place on branch, whether macro the macro, but on the aligned all ways may wins looks as have there's still opportunistic, like that's and was find lender, down year, whether the to of the some be and along accountability on that's just the to expenses. this the the a know I result focused we're Jennifer, I same the done on side, hiring our the last, employee very seven the just of to those think that way. at selective be are we to on active we the initiatives. very just just continue ensuring hiring. accountability the believe a we've at over side. will on experience and measures this as overall talk to to revenue with to That you revenue highlighted and we're measures. have expenses lot increase down - we we experience know going what those producers be last on year, bring could headwinds And that help in we headwinds in actually we need about initiatives beginning the so and XXXX vendor, But of be

is to carry us managers And growth that less types so, instead the and time, are our those experiencing into actually XXXX. at production occurring need of initiatives same with we're -

Mitch Waycaster

follow-up to opportunistic relationship or the Kevin's managers. were managers. And to just and as adding comments year some last Jennifer relationship XX we relative so

to we've exits. additions, be XX but continued year opportunistic we've said, Kevin with this XX had As

to points to on measures that net production mentioned. to we just on continue that drive growth those So and production, it do our accountability and our the in loan growth. able back our And our Kevin we’re speaks to focus while

Jennifer Demba

expenses third look what quarters you or specifically and next on flat run the the is as the goal rate? quarter the over is So keep those rate, good a expenses few is to goal

Mitch Waycaster

Our enhancement improvement revenue intention down. revenue we of will focus the would the can. to where driving knowing be and be on that that efficiency and expectations will But really we have in expense coming efficiency, also come have to on some that meaningful mindful be rate side, run

Operator

comes James. question from next Michael Raymond with the Rose And

Michael Rose

other what we've And in caution, reserves understand to reserve build the going a some just bit an what's was it that think you your portfolios, is, at from retail you it higher not? anything because little little when again, most because, would a healthcare that give but of seeing build then to a we you the to banks. know read this kind categories you've at you but and to as seen I I when in don't quarter this you know, I others, follow-up and look restaurants. did you you of in Is your portfolio than removed removed, indication the I quarter, does risk the happen way So, sort entertainment abundance deck guess this like still interesting. removed future? that it trade, slide then that exactly of this needed Are just look actually that of guess, I two that, quarter, there,

and So how Thanks. think biggest I – please do there put us right we kind that question because altogether try of just out now? that's for the

James Mabry

Mabry. quantitative and Good industries would on your the say Meredith impact And I I to that think, and feel relates calculation questions an suggest and tracking bodes that start for as as of look QX very provision modest to think, will be And uncertain in us terms morning, months period. decline of did good what is for reductions the having behind to and we continues improve, ago. generally, you provisioning. that to in credit well for as QX, and the they're thought would I'll overlay being the characterize ACL few would saw CECL said the Michael, I lifting anyway, That on them the from that in as quantitative favorably will answer David? and heavy generally and continues say, improving, the I impacted the seeing considerably this biggest Jim a we as allowance. how that outlook as would road. And at losses suggests to those. here, we're metrics. be but well qualitative But that model. it with hopefully impact provision the credit it less inputs. the still the the industry it's from we David And that would future suggests down would us And sort slides But qualitative the more expense, David both adjustments leads side, assuming on to in again while things data I the And that The meaningful we use comment and a things that. on on that are have than generally then some make expenses model

David Meredith

Thank you Jim, on on the conversation. the deferral

we where October and at look that we mentioned. if are industries of as So those you XX,

dollar We're how pulled in that out down $X we and a just deferrals from pulled size still rebound. So industry and of we few out so just that that arts seen with remain million standpoint the from and in we've entertainment, bucket $X deferral.

when X.X% So or retail portfolio, not in and a meaningful dollar amount, felt restaurants that were in of resumed down out bringing X.X% precipitated a and bucket the of us we dollar declines under million down as $X out our of pull We deferral payments. those as contractual those it’s were restaurants has $X million bucket loan just total. the deferral reminder normal a because something

contractual deferral the it normal of took make schedule come that wasn’t for deferral to payment bucket, we had from first and They their matured to out. out bucket. it that So therefore it

very the then to of asset direction on also we have And our in monitoring those our So we called monthly continue the that come follow-up those what deferral. confident, as and loans monitoring do out. in enhanced a standpoint are quality that we loans on feel and

be to the different asset And enhanced those an be on so do of may they forth, our particularly a quality, that to rating classified funds. migrated recognition to monthly assets and risk need so monitoring of that continue indicator that

real-time end deferral until those And not the of that's of the it's So, risk period. we have assets. something rating deferred

a So risk real-time of rating. that's more

Michael Rose

guys the - update, the deferral because credit right are it to does guess seems direction. and like the most optimistic, moving in cautiously and altogether, this I So trends is everything you of seem put it

guess the I read way So that's it? to

Mitch Waycaster

point fair. direction. that's provisioning is what prior outlook, think to I in would Again, signs future quarters. saw in than no quarters, in the again, And all less level think that we the assuming hope you that I changes meaningfully

Michael Rose

as can MD&A just pretty term, on near was business, some And then you sale relates maybe in looks banking follow-up give the the data color us what expectations just quarter our good. this again one question to mortgage margin

You can guys qualitative thanks. picked color over obviously just from added have of team bank. another you us would give lenders the any a up helpful, be years Yes, some sort

James Mabry

would volume. ask good this the and add say, good Jim have I margins slower And also very is really seen quarter, we’ve with the I'll we're period we pleased to much strong, QX, of like where much what our time. a Sure, it. early And we've quite to others, going QX. we're But peak is and the division and business mortgage to start enter in historically, we're rest seen And to others the here like that those appreciate of clearly, going in that's industry. there, of QX period trends fourth a in But seasonally continue. our been

it's And think the over slowdown first so to least business the that we quarter. quarter get mortgage bleed natural the first I And for into it. expect in it's will - some further as of the in part at

terms where in that's and it's results and those debt in they'll that The year, led likely some reasonable And have margins that somewhat we'll both up to well compress a volumes think margins, see down, to margins, business. hard say that as for held have would the see really decline given business But I typical of mortgage. So in outsized also I we all haven't volume, expectation. as natural this go. will be in come to volumes in decline it predict and

Mitch Waycaster

to time consistently that financial performing believe the add we add our a a point that's mortgage, platform a service, Jim's proved question, to over that have and in be to core that time appreciation is your and while consistently serves over your time ability to offering think build do also what that that manage to I market, paying line - us. and business - Renasant’s of for we can recruit, comment Michael I the expense We've also in because financial off that service over product. and consistent

and putting we've good going Jim's certainly up they're feel And So, a that forward. strong line built team, performance. about business to strong comment,

Operator

from with Fitzsimmons D.A. And question comes the next Davidson. Kevin

Kevin Fitzsimmons

to Mitch the can business. mortgage made you that follow-on just improving a just manage Maybe you that expenses the in about point

that. and how how color about uncertainty about maybe to we drill of in us to maybe - accompanying but with much trend but folks a the a would just Thanks. to and have there's But see can just you think the you're now, as more good all good more right, a is decline maybe to If not obviously left that start little saying news that not give news, and going a refi right And how the seasonal dealing think accompanying - that ahead? revenues? I well as rates going limited mortgages doing probably up? and but maybe slowdown, eventually seasonal, on a as we're in bad should think normalization we're into little expenses so with is creeping is accompany looking this eventually Because decline

Mitch Waycaster

stayed the Absolutely Kevin, Kevin's would recruiting every teams to out it's right teams. and back much good of business about start by how focused discussion earlier growing And how in and consistency line. the revenue and I that we're to business we've the on building pointing question and a comment our

I how unlike they is able what very build forward. hard business. that while the volume of way ability model. referring continually do as of mortgage been that is manage what that the within monitor we've our vary the support our And we strong changes that business the in as where referencing And and volume predict demonstrate was somewhat built that it's company. to, in through And to not I past they will the some going to and and past, it's our that part We in was particularly leadership to have what of that line in variable, of

the to that. it's ability So, else add? past, I proving but we've think point, to anything this as do Kevin, that our we're Jim, predict to at well in positioned, hard want you we're demonstrated

Kevin Chapman

mortgage mentioned thing is But that down. Kevin, volatile, to as one it's variable. predicting I when one not is in thing nice goes going just mortgage, that be would constant and up we're predominantly it beneficial. is expenses it add in Mitch about And are all the

will correlation And is is and business expenses. as the and that's on variability mortgage a so how - revenues just tight ebbs that And the to so there's built, the the flows expenses revenue.

Kevin Fitzsimmons

can you band down? stay think mortgage point, efficiency of we go the when Where sense a is just - it should on where Kevin, see of us what ratio revenues give we that and within? on today the would the how ratio, efficiency kind that from

Kevin Chapman

mortgage ran and point mortgage ratio a two on points. the - so, - the the or company, now XXs. low historically to three efficiency high they our contributing or right tends now the in percentage Yes Right by their They the or they with have actually two to it's efficiency volume corporate weigh XXs, flipped, it's efficiency. typically have,

historically - it the the their on handle result we're high where that's normal. XXs. back has it, it think XX the spreads, just in the revenue to XX. a high efficiency just efficiency of volumes mortgage the is in XXs, as We been reverts but the lands and experiencing today probably back has that But So a low

Kevin Fitzsimmons

thanks. very debt you deployment, it and Kevin, and where strong. helpful racing took sub the it seems capital sub on you up total just capital of And took risk-based follow-up that's notes guys or Maybe capital like the is have Great, - one step is. the

visibility to or or the seeing don't right that it Thanks. made intend to it. certain the guys that of comment you have give use just but point better is is to a be to you Can ratio sense TCE to issue where back want just more just the us buying a due due up now? buyback on? that getting you approved, regulatory, to get Is wanting You a don't

James Mabry

We buyback position we the buybacks, optionality few say houses are a in flexibility. accessing more. we that referenced our about a would got we've of - capital buybacks terms me, it, future the a stand. debt And a the added we of levers top plus Kevin, part and for hits think front, and we've that's really whether about those again the as quarter. the or the to all well there - at have things And growth process. it's evaluate, allocation is but of of think in thought like measure, capital look no we loan markets we one Jim, where it's opinion seemed flexibility And this one no thing no intentions that. I there M&A. think have number current capital the want on act just something at, and it's as us practice, got we're you but feel to we so, And us. And is to or constantly we capital to think in such capital out, as to that only and like about in the we putting positioned that in the point way make we've good you - got accommodating place, But where upon good sense and we're we our

Operator

next the Milsaps Piper And with from comes question Sandler. Brad

Brad Milsaps

into just trying just that during labor some but you point, loans I I again, margin? gain you the back curious to mortgage the amount if among quarter had hate the was of that to sold

James Mabry

me If you. have I'll number that minute, you a give for

Brad Milsaps

are year-over-year third or expense, more the back million personnel I million $XX XXX% just to Okay. your while for so mortgage that, looking of yet, up revenues mean, maybe than discussion And a increase is mortgage? efficiency of then in up, a $XX are versus that in revenue. you

costs could also be be are whether that amongst or sort or that the out, down come revenue As on hold revenue comes our is down margin? about adjust to because we of that it need way other thinking relationship, as again seasonally

James Mabry

that they on so benefits it's that's that costs, in is benefits costs, mortgage originally producers mortgages, there's majority in employee the where salaries of vast close. but and majority operating is some line they the and item. they're largely in item. employee line are, closing And the cost is predominantly paid in the salaries Yes, again, what Yes

closing, getting an an point little if So the on bit they're where kind we've in revenue some revenue, a outsized side. what drives inflection now bit benefit originally - a of little of there's not not they're There's of which paid. outsized hit impact right

clear it probably you side. the side. during sold maintained But we as sold, and approximately compared about not you're think So will I quarter. revenue X% decrease that in mid And QX to that expense comes quarter margin on going is billion And range, again, see expense variable were that down is your back relief loans going see dollar-for-dollar just two to it in the down, questions on $X.X a which $X.X QX. couple billion maybe point the pretty - came a of to to

any what So time it tightened than we just wider point year. a in little bit, much last but still saw

Brad Milsaps

it, about would helpful? there lot just of that's a part revenue additional a talked but any you headwinds be color Obviously,

Kevin Chapman

as just core margin environment be and see, the feel we're margin, on there's that as so you so we a the we going that's to in. we stabilized. at the But look feel Sure, headwinds stabilizing margin and just somewhat think pressure of that we that that result we're

deposits, quarters of on the expense we quarters, on still offsets interest that - interest as several that's - coming As is? on some on we we pricing, we look and bit there's side. at on But compared portfolio pricing a have what more just loan relief yield of think expense at new there's little the pressure to new look renewed renewed and yield several

James Mabry

at they would in a at core QX, in in what we I directionally, margin, tell and terms story I Brad, XXX. went think XXX, we're add you to of we're I if XXX just Kevin look few quarters And said, think. in QX, QX Because at to last the

now the tells that frankly, directionally look right got I of terms predictor margin. may at as the think that's we story So that best head. And in where we've

I helpful that's trying from guide margin to direction think a of here. So people to interpret the

Operator

Catherine And question comes Mealor with next KBW. the from

Catherine Mealor

you the do starts margin last about Maybe particularly of flow Jim excess on in. that in think on to liquidity you continuing PPP made quarters point the follow-up couple of How to just down? at next forgiveness just impact a the come

are and all thinking to just building start banks Some how are actually as looking at you about curious give liquidity that we forgiveness that?

James Mabry

Well, and at at chime or we a I'll couple in. look we margin. But of things again, core it, look to Mitch Kevin ask then

that to course So yield of of accretive yield come I PPP and our for us to excess tend isolate and cash generally. down accretive continues

as going and think core look liquidity about we so, And at margin forward.

took at We've else and a of We be the $XXX aggressive we out advances. think thing advances quarters in had. bolster And meaningful in of as we've I out took progress. which it few liquidity other One there then point this. hundred everybody million beginning on over more our there's couple roughly non-core left excess some about down relates pay pricing, this this more deposit all on little much us two a liquidity a to be - great the like had sort position. at to is we've think on the funding I advances million of dollars to And is forced to in last liquidity, think got fronts. liquidity I it's

the take and forward, less. be terms exciting because future manage put of to said X% be That it's thought go aggressive the or at to want we we not and about to and of this to being pretty liquidities we balance be mean that to thoughtful in sheet. liquidity liquidity that enable as So we us it, want I work - how

we've to certainly And the love put about that a on there a balance think but to But would liquidity for got the have that - growth would larger would to at we say we it, than X%. work put cautious I going liquidity the to feel it as sheet so be and room and of less say just like because it's right lot I spread to time a of we're doesn't loan securities portfolio. investor

on XXXX. what that work go here, loan ability put So, - in we'll the to some see we've got the but we hope from it where side

unfolds. how So we'll see that

Catherine Mealor

deal? ready another start And then pick will conversations thoughts just you'll your up, how for think and about on when when think on you to be you M&A,

Mitch Waycaster

a business say thought opportunistic, partners, pandemic. challenges past be that's I it's your we're talent, to certainly in sure as opportunities new we're better and evaluate continuing have And point the but And exist, good you always, alignment and with that opportunities M&A pandemic the that whether value. And if during consistently making that, to better to and risk we what model appetite. Yes would clearly we're model, shareholder about we as walking the those markets, business thought and time to new together. Catherine, our today, while just that a in all really culture, focused through few beginning talent, drive answer done the in are on conversations to the thoughts question, those give the to alignment

evaluate conversations And shareholder that continue those pandemic, to we the value. continue. during certainly, So opportunities, drive will and

hard the define. is think to I somewhat timing So

are I certainly think the opportunities, though evident.

Operator

[Operator Instructions] And with the Olney comes next from question Matt Stephens.

Matt Olney

on commentary that on On and that the provide down the hotel came recent any you like hotel recently Thanks. us seen can portfolio, you've in more deferrals bit in any levels for book? a quite it looks occupancy weeks, commentary

David Meredith

Matt of to improvement end good Yes, about there October business morning. since see David improvements of that $XXX million. book This XX continued right, that Meredith. numbers hospitality you’re have XX% - quarter to continue at Sure, is down see

month-to-month hotel So improvements again of migration, some a us. have even front still headwinds levels. seen in we positive look at to continue end. From subsequent occupancy see we portfolio, to We've in our well,

XX%. properties have this less We above only point. We a that have breakeven only a are have dozen at Other NOI not occupancy than XX% below four this point. at at that hotels are ones

that continue comfortable very way still NOI. And breakeven a to also ways that them was continue we to only not we monitor there hotels number four month-over-month responded feel see - to - with have enhance portfolio. our hotel go in monitoring seeing some some but we of continue and improved but we’re the there's the have as migrations. to a headwinds we’ll through positive have the So our metrics Again, those

Matt Olney

buckets? disclosed you levels think Any level on additional there Thanks. criticized to loan up special a the mention? in And I appreciate classified was if migration of change ticked Just bit. little the then sticking loan into trying credit overall

David Meredith

a second laid that of did QX into deferral We we migration phase criticized for second back our mention asked deferral. we likely migrate special phase that classified request would have some with deferral, because as second phase I've in just that a loans out Sure. or category,

$XX book a so And million to of the I about see And again in had - residual phase million that change million that for from of There criticize that at are our XX assets putting loans we weighted an loans would entertainment. about our change they so, those criticized if about portfolio book did loan Again, migrate in on risk kind up proper a our in in hotel was and QX our just million our are that those we business category. that entertainment asked $XX migration the we from increase criticized of in million some by pools. hotel business. made $XX forecasted category, those deferral guess migrate or XX due deferral up second to

Operator

this over question-and-answer And turn for Waycaster the to our any concludes conference closing you. back like Mitch Thank would session. comments. to I

Mitch Waycaster

Thank your you, joined of who morning you. in appreciate of Thank each speaking And Renasant forward Keith, and you we your Corporation. interest we soon. to you time, with to this look again each

Operator

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

now You may your disconnect lines.

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