Renasant (RNST)2022-10-26 19:14Financial Data and Key Metrics Changes - Third-quarter earnings were 0.83 per diluted share, compared to 0.71 per diluted share for the second quarter of 2022 [12] - Year-to-date diluted earnings per share were 2.47 in 2021 [12] - Net interest income increased by 500 million from the second quarter [17] - The mortgage division experienced volatility, but the company is investing in strong production talent [14] - Non-interest income increased due to positive results in capital markets, treasury solutions, and insurance lines of business [24] Market Data and Key Metrics Changes - Non-interest-bearing deposits grew by 883 million in securities to the held-to-maturity category to preserve book value [20] Company Strategy and Development Direction - The company remains focused on providing exceptional customer service and growing relationships as one bank [27] - There is an emphasis on maintaining a strong capital position and managing deposit costs amid competitive pressures [13] - The company aims to achieve an efficiency ratio below 60%, with a current adjusted efficiency ratio of 58.8% [15][75] Management's Comments on Operating Environment and Future Outlook - Management noted that while loan production activity has slowed, solid loan growth continues due to reduced payoffs [9] - The company anticipates funding pressures to escalate in future quarters but remains optimistic about loan growth driven by strong markets and business lines [62] - Management expressed a commitment to maintaining stable credit quality metrics despite economic uncertainties [21] Other Important Information - The company recorded a credit provision of 1.6 million, with the allowance for credit losses (ACL) ratio stable at 1.57% [21] - The company is open to alternative funding sources, including the Federal Home Loan Bank, to support loan growth [62] Q&A Session Summary Question: Margin trajectory and funding costs - Management expects margin expansion in Q4 but not to the same extent as Q3, with a deposit beta around 7% [36][38] Question: Future loan growth expectations - Loan production was 877 million, but still strong historically, with a current pipeline of 50 million to $100 million [87]