RNST - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Renasant Corporation 2021 Year-End and Fourth 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]. is event this note being recorded. Please now Kelly Hutcheson would like to to over conference the with turn I Renasant Corporation. Please go ahead.

Kelly Hutcheson

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

materially many results please factors the and during uncertainty. the from are our many this to which call other we begin, in of statements, risk Before will could involve actual cause that differ note that or expressed results comments be forward-looking anticipated There expectations statements. forward-looking

performance unanticipated revise & Data in markets local the statements include, of of reflect changes forward-looking or and the or Commission, portfolio filed any to the arrest our multiple activity discussed for variants limited undertake business us operating other recent occurrence tab. to no site, corporate we are release, Although and We may of federal, filings obligation our obligation the to to the Releases financial www.renasant.com, earnings assumptions, posted the has pandemic to News time. update impacting our factors taken including including which Market results been results to, recently and Securities events XXXX, at and factors reminds rate the over with the under recent impact Press state most operate disclaim factors and Exchange we regulatory to relative in Other future virus specifically increased but link changed operating the the our significantly future. during and changes, spread Omicron significant remain which fluctuation, the condition interest not XXXX, the foreseeable measures variant, in that

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

Mitch Waycaster

you morning. call Good Kelly. the joining We today. you, Thank appreciate

Jim Kevin and opportunities on discuss quarter fourth XXXX near-term and I the to Before outlook, results reflect and the ahead. want for our

First, I our the customers with Financially, want persevere earnings, efforts for and am we their they of year. team through balance I levels, challenges our the crisis. putting proud to year each as solid the health the very ended and sheet team first so of thank produced liquidity. strengthened capital extraordinary throughout considerable other

diversity number ESG in which areas, important an including inclusion. published of in we report and XXXX, a Additionally, our documents efforts

in We a expect ESG issue new report to XXXX.

As we on remain is look good. vibrant, year the hopeful coming to and the over be better the in the across early with Business causes footprint outlook loan hit activity us sharing I for is by and results. that economic growth. markets optimistic now call and positioned. strength largely turn our improving I and will evident am the hard are COVID growth Kevin. to the new to the XXXX have year, of rebounded is Industries about you

Kevin Chapman

Mitch. you, Thank

or diluted million, share, $XX $X.XX compared the or million, $XX share $X.XX were earnings per per quarter quarter. fourth Our third diluted in to

we $X.XX to diluted compared For the XXXX. $X.XX year, reported in share per

from our own factor balance We utilized PPP grow this and quarter-over-quarter. the of income to interest PPP. liquidity and our in sheet portfolio quarter, was the helped generated offset securities the to largest of loan impact continued income decline additional Forgiveness interest income portfolio slow the to of net some to contributing our

for contribution seasonal of volumes on the of lines results in XXXX. fourth seasonal a margins management wealth in sale gain slowdowns quarter, fourth in and from Similarly, mortgage compression quarter. with lower resulted full business on insurance experienced decline our a further the for mortgage division but strong put coupled the year Our forth

We make progress recent our expense initiatives are results. with and efficiency continue pleased on to noticeable our and

While quarter new quarter-over-quarter one-time initiatives are to year non-interest year-over-year expense compared items, to some reduce we declining of and or the as impact expenses for trajectory benefited expect from the the ongoing the XXXX. of XXXX fourth expected, and

innovative, Our and or will the great applications, over to of our team and Technology goal understanding I our have and team. is receive been always customers, a Jim. high a have face-to-face innovation years, behavior remains adaptive through unchanged. our quickly digital and deal continue focus key and of and the preferences which past now two the and mobile from Customer have been call success. driving to to will evolved turn over priority whether of meeting our needs

Jim Mabry

Thank you, Kevin.

walk we Starting growing slides side. with reference grew the the over earnings from by will similar quarter quarter's deposits deck. the Noninterest $XXX bearing assets sheet, As million the deposits. through amount with total balance in results, on XX% now just liability of I represent the a deposits

of some just our in securities the balance excess portfolio, $XXX from the the increasing As million quarter. previous over Kevin we liquidity invested mentioned,

the payoffs X.X% portfolio did quarter had nominal outstanding $X was for for another production, the and We million the classify of as challenges the approximately $XX PPP QX. portfolio during Activity the we At loans in end $XXX million strong new the this Loans, QX year. million remaining quarter, reduce represents production in in not of of quarters. million position result pandemic QX which this $XX quarter. maturity of have credit coming of $XXX million in held with had to of quarter in around year-over-year, increased from securities ex-PPP, of and billion a $X.X subside We also additional cash. growth was record to and approximately in PPP our advances, $XXX in the We our we that $XX,XXX. declining elected end. present classification, with loans growth terms balances anticipate a to and combination loan the XX% as been over loan in the cash of loss but million much reserve portfolio at

our capital of regulatory an are excess and strength be to capital considered of capitalized ratios well position. required minimums of reflect the All our

notes issued notes. years. the million Xst. that $XX of million $XX fixed $XXX occur our proceeds company for to quarter, of During X% on Related subordinated for at first we million notes, rate capital in callable The replenish this, to XX-year subordinated used subordinated another offering redemption the of have redeem five this the a we will called March which of

a from ex-PPP, to $XXX X.XX% release repaid percentage a prepayment The of $X.X advances long-term of and million. also ACL charge net credit and We as had penalty million. provision in a charge-offs X.XX%. incurred We $X.X of million FHLB decreased of loans, $XXX,XXX

through reserved PPP fully our had the charge-offs unfunded other slowed Pass decline is and was comprised a interest of charge-off. Net that mentioned $X quality interest million from credit noninterest offset for helped and reserve is We on our release $X.X measures additional with $XXX,XXX, single a our fees PPP Interest at this in of declining shown PPP Credit asset forgiveness also nonperforming which all income classified in pages revenue. of securities relatively largely XX expense. declined Kevin quarter, commitments million are time from dues, income purchases QX. that quarter-over-quarter. from net steady. remained uptick reflected XX. metrics The in

was excluding in on was accounting basis accretion our and is points decline excludes the loan core Our from margin only of sheet liquidity. basis the core points. XX down PPP, recoveries, the and After which impact from The result pricing interest margin, considerable X purchase also pressures margin down balance QX.

results seasonal strong in for the Our management all QX, but mortgage, business produced experienced wealth of slowdowns and insurance lines year.

this exclusions noninterest quarter, one-time our of treasury terminations expenses of borrowings Our which hedges in terminated resulted attributable expenses future and the are were decline decline is as capital mortgage well to Noninterest decline solutions in to team, for other FHLB portion for recorded helped all and million division, in The noting offset longer the down as teams, that expected quarter. mortgage. no as is as worth It that well we a $X.X the linked occur. A million, gain markets swap our some income. also is in cash items. that flow to outperformed four approximately with SBA $X.X

expense in in initiatives to We continue over call from now the turn initiatives realization and back continued Mitch. of see will expect the to I other benefits XXXX XXXX. announced late

Mitch Waycaster

Jim. improving for the profitability and you, a sound fundamentals with shareholder to to now are the strength, call of banking operator committed on turn value. capital Thank the building to will Remaining focus the Q&A. asset keys quality, deposits, core I over

Operator

Thank you.

the Wendler question first session. We Thomas Please with go from begin comes the now Instructions]. [Operator will ahead. And question-and-answer Stephens.

Thomas Wendler

morning, Good everyone. Hi.

Mitch Waycaster

morning, Good Tom.

Thomas Wendler

is finding it us of then no guys the attractive you stock. the capital can idea for On company's repurchase says this give by release, the Is to other pathways company intent current an earnings current And valuation? driven you deployment? more have

Jim Mabry

This Thomas. Jim. is morning, Good

thoughts on couple a So of management. capital

consideration something say, in that. that that balance returns of I spend we uses doing in it's time growth thinking lastly, sort another that beta, deliberation about factor uses acquisition ones sheet thinking a of stock the relative produce which factor we're price But of And is is about opportunities. what also have. And the a course, then different of of on we or capital. really would the capital, sort best lot what the of Of and might

alternatives envision use over at now, of it's term. merits a cons being pros right get we So something And year, weighing sort those this the point, the the of near not see repurchases, as other it's capital we and we'd something away course from for the not roll share best and in the each. of constant of just in we out, but

Thomas Wendler

just non-bank in bank be Thank color there? be any you guys on on asset focused give size, keeping or of then a you. great. or can conversation, it'd with me if might geography sort you That's the a And where that M&A

Mitch Waycaster

Thomas, this is Again, good Mitch. morning.

continue relative certainly non-banks looking and to to opportunities, would evaluate As size. at we we be banks those

would X not in opportunities you risk most see opportunities lines I billion have our to those that go would billion in I that billion would to we would there, wouldn't and mentioned out also, that in they align non-banks, lines it that markets. -- and today as success particularly certainly for would business production with I us, we say complement building about For we place X footprint. we're we our talk in below that already likely space, existing new say the range, that model were today, be in business and moment. in appetite across But that business if here But say a enjoying X

Thomas Wendler

I'll you. great. queue. that's right, All back Thank in hop the

Mitch Waycaster

Thank you.

Operator

The next go Yanchunis Raymond question comes with ahead. from James. Joseph Please

Joseph Yanchunis

there. Hi,

Mitch Waycaster

morning, Good Joe.

Joseph Yanchunis

could that your wondering a in security is a there the to? of on in in had portfolio quarter, prepared rise believe that if kind in remarks, potentially [indiscernible] was you And of XXXX. your at you mind I discussed where morning. XX.X% increasing Good assets the I cap

Jim Mabry

Jim. Good morning, is Joe. This

So I concern, of certainly, would change. and that with liquidity say there's cap a is not And our a we can fact can have mind, but that portfolio in start is view and the change deposit behavior we source no absolute things that that realize we really liquidity.

envision the that reevaluate. is prior least some two quarters, of or the slightly and at portfolio done continue will we've So that the way next along we'll in securities quarter we lines to build what we then

further behavior. what year, in in any get got extent that deposit also we've to and we growth the As of in there's see way we'll been the loan the change

sort But of in it I portfolio. to that comes. securities do play term, as expect growth see it's some -- So we'll a near

Joseph Yanchunis

on hoping will also thoughts out? great. here? it the And was That's expect And I appreciate Understood. do for to you get from you when NIM your I bottom to it. trend where then think

Jim Mabry

stabilizing We I those and see signs have call. quarter the think and at of of some in continued. trends end NIM of do the signs the -- third this

we the of balance part do guess of as we've We So I'd that year. to to that improved see and But do lot. is interest largely is say growth quarters, we a and thing growth have the a of in that's both, something comment that terms expectation in that to on is I the the start sheet we stabilize. for go expectation stabilization quarter, do obviously that the our in that and And loan that the function focus in hope through is the margin. as I margin will equation income, the net -- regard from got grow coming we the on end see of second would chance that expectation other we get that's as

made thing benefit of comments other The NIM these just income I'd is both ignore about and of I rate say net increases. interest any the that

Joseph Yanchunis

trending have X.X% impact guys from do Got believe things to rates? in you XQ. interest kind it. in of were for on And guys the are then where you XQ at or that about an rate I XX/XX rising NII of update sensitivity, at

Jim Mabry

is We we But this. deposit would expect, we'll we're than with probably I are would Q, up publish other that some the of then updating hard our likely also that I deposit or out -- think it's it. go it's But a adjustments when obviously probably higher thing say And the to touch. obviously put betas data. no X.X% compare. that beta peers. would that will our even And I

our is look guess, little position. probably sensitivity So at my a rate sensitivity you our would be interest understated as

Joseph Yanchunis

I for taking Thanks really it. appreciate questions. Perfect. my

Mitch Waycaster

Joe. you, Thank

Operator

Please The Truist with question comes next go Securities. ahead. from Jennifer Demba

Jennifer Demba

morning. Good Thanks.

Mitch Waycaster

Jennifer. morning, Good

Jennifer Demba

mentioned likely You that are 'XX. expenses be down in to

investment us environment profitable you contemplates? could and give hiring if a kind range there Just that and what wondered of

Kevin Chapman

It’s Hi, Kevin. Jenny.

making looking them are a couple As and things. we our at expenses about of guidance lower, look being at

you done expenses still there's in since what each got that be expenses the variety will the rate hiring year, were we've to largest look being know to percentage That's we inflation. and If at It's where lower. given going that of to we've comes it comfortable just guidance is, wage to come our that last down, be or headwinds of improve. of we that when run our But room a The benefits salaries think we even 'XX, projecting some our base from efficiency areas. employee quarters be. continues of annual why

hire We will is right the opportunity to hire there. when

comes it's not expense be occupancy hire for very as line going continue blip cause expenses. good in expect We'll make an those a it's continue that and equipment to disciplined in line closures, well. would a when opportunistic also say going items, down to But around fear to our of all to we're we're from or it whether uptick going it's be contract whether items. whether ongoing to may I not it So come hiring. or other data the to renegotiations, branch trend processing, to to our we initiatives, that continue

look that is on out or whether say seen, particularly continue what guidance, as far our be to line we As of year-to-year year-over-year a would going you've as quarter-over-quarter trend to I basis. there,

in routine call we a As QX, in adjustments. little due we small We increases. salaries look have some QX with and will that just merit uptick a to helped at mentioned employee benefits the was bit

our I just look was X think X salaries line at decrease still an million. employee item. close benefits you employee comprised it's down Those to benefits, If and and about in adjustments there million, salaries so appreciable

going look So be where with decrease, as for year-to-date as we think baseline your that's 'XX. that out, you assume expenses take a end the if we to line we I and up in think

Jennifer Demba

Thanks, Kevin.

Kevin Chapman

Jennifer. you, Thank

Operator

Sandler. from comes question Milsaps Please with next go Piper The Brad ahead.

Brad Milsaps

Hi. morning. Good

Mitch Waycaster

Brad. morning, Good

Brad Milsaps

I follow on wanted hope late, you well. guys the expense question. hopped to are but just I'd up doing a little on

were much to efforts mortgage get purely of was costs? guys in taking sense quarter-to-quarter, of kind of from how of curious, terms of kind just ways to related kind it to total other a you where and you of maybe maybe headcount, Just are in that reduce other wanted

Kevin Chapman

Sure. Good morning, Brad.

XXX it to and whether the we year-over-year pandemic. to system, are areas we probably provide wires that employees to in that expenses critical certain add add we about much body protocols, can we're customers, we able that let saying there we in with need be just or our now, in be are But on or at if certain just on On what because some hire. like certain also And, make address -- the too branches to headcount, by have fatigue you but in we the would to it's lot the having don't there's still our every functions pandemic, first our absolutely customer don't would a of call when sure want that and put staffing that we our due continue fatigue There employees headcount's or areas, headcount, that to want center. are we service. employees, to strain due able to particularly down headcount with look our me comes again, and also of compound right what the that just dealing just

the is table, where we've reduction care counterintuitive, benefit providing to package -- And health amount of the seen. we're some company's not that we've only effort nice reevaluate As QX, insurance. expenses minimizing maximum well. considering This the employee, And well, the not and that's to bit at our in to a steps employees. but from at the But is our increases but the the same we whether look reduce to it's the taken the will say or cost, know expense That's as employee contractual the benefits that's to an ensure our the actually long-term where benefit care. costs employee. the a on reduce health another shift I employer I And benefits. time, In total maximize would little but come, that obligations costs. saw everything change to just benefits employer cost some and of in cost reduction life minimizing we health as

of reversion in environment. back is that also end salaries reflected and mortgage at where is decrease X having down to be a returns We to this did some normal X.X a QX, We're QX now its operating benefits. the started normal. to so which to of be to maybe headcounts, mortgage On it's benefits line of million, line salaries reevaluating and which QX item, some employee item, going as look kind commission we have million see expenses. but the mortgage going about largely employee components and coming include And down. benefits, would as were from in at mortgage, the to of Their all

of is the years two And didn't back of so for cyclicality now because low we past some the mortgage see that into rates.

Brad Milsaps

secondly, think around bonds Okay, great. legacy was if as I a maybe curious, you I missed them? putting or this, XXX here of stabilized do up new more your Thank kind apologize And where less Kevin. like you have are so? sort if you of on kind this. but around But I XXX. for loan apologize and it of actually I buy you, just as yield you follow Jim, And your mentioned yields feel just down or

kind curious could of think what improvement of kind you Just there. you see

Jim Mabry

morning, Good Brad.

So you're correct. touch to we we're that the and a than QX in not all, in a to terms duration to not then we're the at roughly or of confidence and of goes. yields, QX running down in where the QX. we're -- able loan uptick portfolio, in much at able work in years margin Core that's gives putting were Generally, four basis terms us of QX, higher which were the from to we've we're reason the three to we're they a of is so XX that. extending that securities XX part which not directionally terms in but terms put there of at, work books, nice terms -- points we're put securities half got of And with the of and money on

Brad Milsaps

Great. guys. Thank you,

Mitch Waycaster

Thank you, Brad.

Operator

Please with comes go Kevin Davidson. ahead. question Fitzsimmons from next D.A. The

Kevin Fitzsimmons

Hi. everyone. morning, Good

Mitch Waycaster

Kevin. morning, Good

Kevin Fitzsimmons

more been about then do start curious that changes, loan or how a will loan of of to hope have that a a quite But happen, up substantial think feel little and been I'm for you you into payoffs, about a the like and and that or headwind tax that? point know to for strong production you all. that's while paydowns some rates hit seems causing anticipation may going maybe thing when And you I we tough like more maybe what's headwind, translating this guess potential high a it project. seems real it's on It growth? you have do just

Mitch Waycaster

your is point And Kevin, in think Mitch. question. this you a make I key

saw to me Let production. But payoffs we ended with on and relative the and fourth to with end your as with start in that, I'm year. reflecting quarter last the going start comment we something I'll

XX% beginning with We saw quarter. million just increases in production. this had in from we in And 'XX, up each XQ. So million record XXX in production. produced actually we production, production for quarter That's actually XXX

production earlier. seen rates -- is reflection of in the I a given some talent quarter, we the right So and of in net to thing sale been large and was But strong adjusted a investments are say, that fourth as We prior of about opening quarter we strong we there in segment in really the that cap of with saw people which grow, come continued toward strong we driven, the payoffs, in those XQ, is and rates. by change just this about opportunity that production that and market increase given range asset, that those one continues our lot just one to But you the quite where sale asset end a in I mentioned year, did bit of to that X% the we've in the if we those run things have think it as that production. seeing quarter Kevin comments, saw our of which with of, referring part a sell to accelerate for payoffs. more was of would asset, the saw in growth of payoffs had driven XX% the but point elevated simply now quarter, to XX% underlying we're other the your the took saw the

was what credits the small granularity consumer about in But going our in that, really that XX% our family, our in was loans which evident think So we and of business XX% to X.X group, production some which the like our whether commercial, we're would ability types of in either that the also about granularity, larger to seeing, commercial be is of four about producing, And and another I'm one about seeing greater we our C&I our specialty hopefully produce to And credits and loans to on by XX%. XX%, banking the were is we're of change of going then some million. we're forward, than began also which that or see I change. pipeline will top that that see but optimistic yes, forward. that corporate geographically

you by whether back of we seeing asset, results it type, at in really 'XX. So go see look just good production driven from by maybe that your outliers hopeful geographically sale or payoffs we as and some into that's to we're point which we are change

Kevin Fitzsimmons

Okay. Thanks, was Mitch. That really helpful.

few there's margin, the follow to one here. parts on, different the think but Just about been on a questions just trying moving all

see way So you think going at mix to income going dual the would away, there's least shift with it the PPP putting but midyear, even as it -- probably then quarter And first further maybe effectively to I PPP that from is partly it come about continue. have rates. offset would remaining the off by then getting stabilizing, headwind this cash and mix rising in stabilizes the the tailwind think shift, work. right, toward of you And to that

think the degree the that of but plays declining. out I moderates, not so deposit benefit And the is scenario optimal growth plus actually that to margin

just being about So to trying it curious used earning NII or stabilizing now you been you're years. has your I'm by think assets, bit than would it? percentage a put NIM you building in -- how the past altogether, more maybe have but few driven average

Jim Mabry

the for probably it Kevin, That's together. right it putting or All those the sort behaving of you loan of biggest would ignoring things if in the think yields, trending may good get. growth. underlying I'm that loan variable. -- all the loan new outlook we say we job, a and key think sort biggest increases did core that at Again, look rates on for rate of margin and renewed us I is I -- direction. I potential

and the will improving because I liquidity look certainly some run of say we in be excess and rates that around the loan higher that that to and growth net margin take key think that put and remixing loan help continue some particularly invest variable that's securities, able that at will got is do I'd that the as we'll But of at and money. we're our we models have to outlook. biggest we've sort it, to optimism growth these

Kevin Fitzsimmons

Great. Jim. Thanks,

Mitch Waycaster

Thank you, Kevin.

Operator

Catherine The ahead. Mealor next from question with Please KBW. go comes

Catherine Mealor

follow-up loan quickly us Hi. have about is benefit the Can just on to rate, remind impact of and loans just start yields see thinking once variable question move? margin what and Good morning. floors the a the rates how you your percentage that I repricing. you of just portfolio loan and

Jim Mabry

Good morning, Catherine. It's Jim.

Catherine Mealor

Good morning.

Jim Mabry

Good morning.

portfolio our of XX% fixed. roughly So is

XX% variable floor. we've just with of have the the percent increase that our back of variable in the being quarter variable moves couple around think rate the have that two I thing loans a the point increase. and questions other look but at those or move, floor. and basis you into a It's rates, over about sensitivity, thing production floors our And I'd as margin quarters, if the under that of not we helped. percent And, that's production certainly those of last our XX ties loans of last seen this we've rate variable And other hair you're XX% of is say or dramatic, XX% course, seen these above XX% a -- that mix, as and seen loan percentage above the adjustable. terms say is and up above number in starts to I'd no go about up. XX And over loans rate we the in get

Catherine Mealor

Great.

to And mortgage about this came reduction I base from came there lower is looking of our look think think on next mortgage? just year, Okay. there much the mortgage versus expense we being about together guess efficiency a back is do to kind And efficiency of or forward ratio then as way how the revenue put the mortgage how expenses, of quarter core -- part we as a ratio from model?

Kevin Chapman

it. of back we is This morning. good it's cyclicality reverting When mortgage, the look Catherine, at to Kevin. mortgage,

the higher under years. to is of back knows, happened become that what And more mortgage the margins, our the although coming still compared so has QX, they're couple or they mortgage of over if last year, to the 'XX to course out But we over as to outperform mortgage to 'XX. may QX industry And in outperform of QX The 'XX, QX is they two we of the last company efficient. be were still compared expect down what's or 'XX -- in -- years industry. particularly than of everybody a can look headwinds,

So are mortgage. positive That said, there's reverting some underlying back is trends to cyclicality. around mortgage that

years are And it opposed with it's two headwind starting as And now again. so the a headwind. right times to -- we're efficiency see ratio benefitted to over there become where mortgage a now the several last

run, way, the our to headwind. it's XXs, QX drive be that. it. cyclicality So of over short the overall, ratio. But company's elevated a probably mortgage next a run to back expect in continue be little the not be improve going to course for And in of the will headwind QX was going year, But efficiency for ratio is the high still is QX be bit XX, bit would much efficiency be we drag. a then of and and ratio going But the year, corporate and a so by going still below -- probably that in run, a little then when to improve well in typically typically down It XX year QX on that as the runs so that low about to is is mortgage efficiency in running XX%. in it's the low XX, -- it goal and XXs, above the high to

a the initiatives to will some to the is efficient. have steps continue mortgage company. reverting to -- they doing ebbed weigh not bank insurance, a gone the is improve reductions some has operate. making. variable the attributable mortgage the on is it's operating will efficient, there outperform business It mortgage, efficient mean about X to more its other a And just it on be state expect mortgage of comp, while means a efficiency headcount just still the as to less the that we is it is industry is And the management. but rate. investments It at benefit, points been to time production good be a of of little non-bank and there business the business and of on quiet that the talking or lines, we're lines; and there's consolidated normal the That's just But bad wealth -- corporate benefit end little while weigh least some to that will back about Just efficiency will X and only percentage taking run but a ratio ratio line. will Again, is efficient more for at flowed. just become doesn't line. day, headwind to business There's efficiency it's how continue efficiency. what we're ratio, to less company's they efficiency, bit bit at But

Catherine Mealor

And is that rates of with corporate a I'm to and a know achievable that too. in that think see targeting, think you're margin how there? years efficiency there, growth you do course is achievable? But or something higher year, you it part takes long sure it's the XX% improves get two better do I in loan probably of the ratio that's ticket you you

Kevin Chapman

I a [ph]. can I in the if think Yes, environment, But we'll be choose week that's or there peculiar don't two.

quick Again, what going don't we what we expenses move in many, talk efficiency, be to on as assuming to about scaling of environment. if rates increases. it's the year. -- have don't timing they we enter regardless and let's they move year. macro XX% we that's next could how That have the and is be I still move the yes, year [ph] of on the don't if think we rate If event we next think rate increases, If I our so the happens rates, have, focus have. said, company operating earlier a have the have in don't we

have we only is our And increases, a goal. so rate whether short-term XX% focus,

Our we means a in bank low community it the model operating And think drive as bank the efficient longer-term XXs. about community the a goal XXs, XXs. model in is And the mid that we're operate. is can if that's to to as bank, mid

that our increases, of So that's but that our percentage Jim we've what have deposits the funding, sensitivity we we've longer-term at now we bearing plus. total deposit goals. are sitting the is about mentioned, core asset noninterest But yes, as what growth aren't our if rate -- talking had, XX% a and DDA

maybe if some those we little bit normal normalizes, when sensitivity, expect drive that on fundamentals. the ever help a the more do rate environment focus to improvement in maybe and the And rate rise. deposits, of is, whatever do value of continue income outweighed as to we they So

Catherine Mealor

apples-to-apples? efficiency And a to relative to talking today's of XX. be relative that adjusted XX you're of Is ratio clear,

Kevin Chapman

That's correct.

Catherine Mealor

helpful, great. Okay, Kevin. you. Super Thank

Mitch Waycaster

Thank you, Catherine.

Operator

go [Operator next Wendler is from Thomas from Please The up question a ahead. follow Stephens. Instructions].

Thomas Wendler

Hi, guys.

to NSF Just a been that fees. one policies you've banks their final at? lot change starting We're Is question something see around of from me. looking

Kevin Chapman

Thomas, it's Kevin.

in driven historical you have. you, we we a our was time, get not saw to the fees at charges consumer at NSF to of And by line being those that starting around winds exact yes, large 'XX, or around least commentary items. [ph] on noninterest change. back And So take income to 'XX deposits but service or portion the because may

time, a lessen we reduce income. our or long-term to reliance them, And so at of that on contribution to those had noninterest to initiative the

very I in are management, just those about that wealth be invested we talked good effective so lines inefficient And insurance, also But capital. and were. business all of to they're of they how mortgage, very use in

those are to are and and the the our threefold, call down. last, service the we've so total has charges consumer although sheet to that what years XX company increased NSF XX their items it, down, to line flat contribution And is over balance fees, seen

So also to we building that also we've yes, And this with needs. taken would to over Not just or offerings to seen more we the less to XX some growing. help is of commentary accounts, I to deposit and peers charges. less. and but been model, months ago that of headwind can the they we've more that's our way more that's a something can years out customer have XX education manage with this something the as customers last help add effectively tailor in as seen that their there's our the accounts than But consumer come also options we've their simplified looking even variety sooner and help their restructured steps service And completely that a about. provide couple changes talking we've taken been steps at those so and benefit we those to have significant along effectively we've choose deposit the to customer options. manage only many

evaluating yet. fees we So also say We in it's mind our now interact We're would of the like But they acknowledged future. service that any that how yes, I'd don't have just over and NSF years, add the with of them. top looks we definitive have that customers right with couple charges. last answer how

ultimately that customer And is We what named their markets the bank states best satisfaction. the drives and that operate in feedback the have in. decisions, of our of our and we several been several

working mind only guide. fees we've around a last now charges. couple service last and months, of the to going of be that but NSF years of on But say also decade I that's and something specifically it's not couple been and So is almost top the would our

Thomas Wendler

Great. Thank you.

Mitch Waycaster

Thank you, Thomas.

Operator

We have no further questions.

for over our the conference to concludes turn session. closing So now Waycaster any remarks. back I'll this question-and-answer Mitch

Mitch Waycaster

who We and to Renasant and the Conference to to participate We Thank Thank in next look in talking you, soon. February. plan interest the appreciate everyone KBW again your you. call. forward joined in Tom,

Operator

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

now disconnect. may You

Renasant (RNST) 26 Jan 222021 Q4 Earnings call transcript