Renasant (US:RNST)2025-07-23 15:02Financial Data and Key Metrics Changes - Reported earnings were $1,000,000 or $0.01 per diluted share, while adjusted earnings were approximately $66,000,000 or $0.69 per diluted share [5] - Loans increased by $312,000,000 or 7% from the previous quarter, and deposits rose by $361,000,000 or 7% [6] - Core net interest margin expanded from 3.42% to 3.58%, while reported margin increased from 3.45% to 3.85% for the quarter [6] Business Line Data and Key Metrics Changes - Adjusted pre-provision net revenue was $103,000,000, with non-interest income at $48,300,000, reflecting a linked quarter increase of $11,900,000 [10] - Non-interest expense was $183,200,000 for the second quarter, with merger and conversion expenses of $20,500,000 included [10][11] Market Data and Key Metrics Changes - The fair value of assets acquired in the merger totaled $7,900,000,000, including total loans of $5,200,000,000 and total deposits of $6,400,000,000 [8] - The company experienced improvement in past due loan percentages, with non-performing loans remaining flat [9] Company Strategy and Development Direction - The merger with First Bank shares is seen as a significant opportunity for growth, with a focus on integrating teams and meeting customer needs [4][5] - The company aims for mid-single digit loan and deposit growth, with a strong pipeline and focus on capturing market share [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration process and the potential for future growth, emphasizing the importance of focusing on the merger's benefits [12][61] - The company is cautious about potential economic impacts but remains committed to achieving its strategic goals [36][39] Other Important Information - The adjusted total cost of deposits decreased by 18 basis points to 2.04%, while adjusted loan yields decreased by only one basis point to 6.18% [7] - The company expects additional conversion-related expenses in the third quarter, with a goal to achieve modeled synergies by year-end [11] Q&A Session Summary Question: Can you walk through the margin and expectations moving forward? - Management indicated that core margin is expected to see modest expansion, with two rate cuts anticipated later in the year [16][17] Question: What are the expectations for core expense levels in the next few quarters? - Management stated that efficiencies from the merger will start to show in Q3, with a clean income statement expected by Q1 next year [34][36] Question: Can you provide color on elevated charge-offs of problem loans? - Management clarified that the charge-offs were related to individual credits and not systemic issues, with expectations for future charge-offs to revert to historical averages [51][52] Question: What are the thoughts on potential buybacks? - Management emphasized that capital is primarily for organic growth, but buybacks are considered as part of the capital allocation strategy [55] Question: When might the company consider whole bank M&A again? - Management indicated that it is too early to plan for M&A, focusing instead on the successful integration of the current merger [61][62]