Renasant Corp (RNST) 2013 Q3 法說會逐字稿

Good morning, and welcome to the Renasant Corporation 2013 third-quarter earnings conference call and webcast. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to John Oxford with Renasant Corporation. Please go ahead, sir.

Thank you, Chad, and good morning and thank you for joining the Renasant Corporation's third quarter 2013 earnings call. Participating today are members of Renasant Corporation's executive management team. Before we begin, let me remind you some of our comments during this call may be forward-looking statements which involve risks and uncertainty. A number of factors could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements. Those factors include, but are not limited to, interest rate fluctuation, regulatory changes, portfolio performance, and other factors discussed in our recent filings with the Securities and Exchange Commission. We undertake no obligation to update or revise forward-looking statements to reflect change assumptions, the occurrence of unanticipated events, or changes to future operating results over time. And now, I will turn the call over to Renasant Chairman and CEO, E. Robinson McGraw.

Thank you, John. Good morning and welcome to our third quarter 2013 conference call. We are pleased with the results for the third quarter, which includes the completion of our merger with First M&F Corporation, our largest acquisition to date. In addition to the merger, we continue to experience strong loan growth and significant improvements to our credit risk profile. Looking at our preferred financial performance, net income for the third quarter of 2013 was $6.6 million, or basic and diluted earnings per share of $0.24, as compared to $7 million, or basic and diluted EPS of $0.28, for the third quarter of 2012. On September 1 of 2013, we completed our merger with M&F. Our results of operation do not reflect M&F's results prior to the date of merger completion.

2013 third-quarter results include $2.7 million, or $0.10 per share, in after-tax expenses associated with M&F transaction. Excluding these merger expenses, net income was $9.3 million, or basic and diluted earnings per share of $0.34, for the third quarter of 2013. Our results of operation do not reflect M&F's results prior to the date of merger completion, but balances as of September 30, 2013, incorporate the impact of M&F acquisition, including approximately $1.4 billion in assets, $890 million in loans, $1.3 billion in deposits, and $115 million in goodwill and other intangibles, along with 35 branches and 8 insurance offices as of the completion date of the merger. We issued approximately 6.2 million shares of stock in connection with this acquisition. The assets acquired and liabilities assumed are recorded at estimated fair value and subject to change pending finalization of all of these evaluations.

Net interest income increased to $38.7 million for the third quarter of 2013 from $33.1 million for the third quarter of 2012. Net interest margin was 3.86% for the third quarter 2013 as compared to 3.94% for the third quarter of 2012. The competitive pricing pressure on loan growth, which continues to cause margin compression, remains a real risk. To combat the long-term interest rate risk associated with low rate loans for extended periods of time, we have made a concerted effort to shorten our repricing terms while maintaining new and renewed rates. As a result of these efforts, the yields on our new and renewed loan production improved slightly during the quarter and, as compared to recent quarters, while reducing the weighted average of pricing term.

Noninterest income was $18.9 million for the third quarter 2013 as compared to $18 million for the third quarter of 2012. Gain on the sale of mortgage loans was $2.8 million for the third quarter 2013 as compared to $4.4 million for the third quarter of 2012, due primarily to a decline in the mortgage pipeline and increased pricing pressure as a result of the slowdown in refinanced volume caused by the recent increase in mortgage rates. While we experienced a slowdown in mortgage volume in the third quarter as compared to an exceptionally strong recent quarter, we have seen both our mortgage pipeline and competitive pricing stabilize. We were particularly pleased to see our purchase volume increase 41% from the third quarter 2012 as we continue to see results from our efforts to increase both retail and wholesale purchase volumes to offset the reduction in refinanced volume.

Noninterest expense was $46.6 million for the third quarter 2013 as compared to $38.7 million for the third quarter of 2012. The increase in noninterest expense during the third quarter of 2013 as compared to the third quarter of 2012 is primarily attributable to $3.8 million in pretax merger expenses and additional personnel related to new lines of business and in-market lift outs.

Total assets as of September 30 of 2013 was approximately $5.74 billion as compared to $4.18 billion at December 31 of 2012. As of September 30 of 2013, our Tier 1 leverage capital ratio was 8.66%. Our Tier 1 risk-based capital ratio was 11.40%, and our total risk-based capital ratio was 12.53%. Our tangible common equity ratio was 6.49%. All of our regulatory capital ratios continue to be in excess of the regulatory minimums required to be classified as well capitalized and are in line with our premerger projections.

Total loans, which include both loans covered and not covered under FDIC loss share agreements and the M&F required loans, were approximately $3.86 billion at September 30 of 2013 as compared to $2.81 billion at December 31 of 2012. Excluding loans from M&F, loans not covered under FDIC loss share agreements, were $2.79 billion at September 30 of 2013, an increase of 8.59% from December 31 of 2012.

I would also like to point out that we continue to experience success with our de novo market entries. During the third quarter, we officially opened our new Starkville, Mississippi, location; finished the construction of our new Montgomery, Alabama, branch, which will open later this month; and expect to complete our land acquisition for our new Tuscaloosa location during the fourth quarter. In addition, we are pleased with our new east Tennessee markets, as they now have over $100 million in loans and $61 million in deposits.

Total deposits, which include deposits from M&F, were $4.83 billion at September 30 of 2013 as compared to $3.46 billion at December 31 of 2012. Our cost of funds decreased 11 basis points to 57 basis points for the third quarter of 2013 as compared to 68 basis points for the third quarter of 2012. Our loans and other real estate owned, OREO acquired in the FDIC assisted transactions, are recorded at fair value. Furthermore, the loss-share agreements with FDIC as well as adjustments to the balances of these acquired assets to record them at fair value mitigate the impact of further losses on these assets.

Nonperforming loans and OREO covered under loss-share agreements totaled $50.1 million and $16.6 million, respectively, as of September 30 of 2013, combining for a decrease approximately 32.47% and nonperforming assets subject to FDIC loss share agreements from December 31 of 2012. The remaining information in this release on nonperforming loans, OREO, and the related asset quality ratios, exclude the assets covered under loss-share agreements.

Nonperforming loans were $30.9 million at September 30 of 2013, which include $8.8 million of nonperforming loans from M&F, as compared to $30.2 million on December 31 of 2012. The Company's coverage ratio, or its allowances for loan losses as a percentage of nonperforming loans, was 150% as of September 30 of 2013 as compared to 147% as of December 31 of 2012. Excluding M&F's nonperforming loans, which are carried at fair value and therefore do not have any allowance for loan losses assigned at September 30 of 2013, the coverage ratio was approximately 210%.

We recorded the provision for loan losses of $2.3 million for the third quarter of 2013 as compared to $4.6 million for the third quarter of 2012. Annualized net charge-offs as a percentage of average loans were 38 basis points for the third quarter of 2013 as compared to 78 basis points for the third quarter of 2012. The allowance for loan losses as a percentage of loans, including the acquired M&F loans, was 1.25% at September 30 of 2013 as compared to 1.72% at December 31 of 2012. Excluding the M&F loans, the allowance for loan losses as a percentage of loans was 1.66% at September 13 -- September of 2013.

OREO, including $13.2 million in OREO acquired from M&F, was $40.6 million at September 30 of 2013 as compared to $44.7 million at December 31 of 2012. Excluding the OREO acquired from M&F, OREO totaled $27.4 million at September 30, a decrease of approximately 39% from year end. During the third quarter, the company sold approximately $6.4 million of OREO.

We continue to see a strong loan pipeline as we move into the final quarter of the year. We believe the growth of our recent de novo entries and in-market lift outs and the continued ability of our legacy markets to perform at high levels, has us very well positioned to maintain our positive momentum for 2013 and beyond. As we move toward the full integration of M&F in the fourth quarter, we remain excited about our new market entries, our additional banking talent, and our legacy market expansions provided by this merger. In addition, we believe the M&F merger complements all of our other external growth initiatives, all of which will continue to enhance our profitability. Now, Chad, I will turn it back over to you for any questions.

Thank you, sir. We will now begin the question-and-answer session. (Operator Instructions) Dave Bishop, MLV & Co.

Good morning, Robin.

Morning, Dave.

I was wondering if you could talk about -- you know, obviously, commercial loan growth, again, robust there -- the breakdown in terms of some of the contribution from some of the de novo efforts there and maybe what the 30-day pipeline looks this quarter relative to end of last quarter.

Yes. Let me give you an idea as to where we are with some of the de novo entries. We actually, to date now, loans and deposits of de novo's have crossed over $250 million on deposits and the loans are over $300 million to date on the combined total. East Tennessee is now up to $129 million of loans, $60 million of deposits. We are seeing really a tremendous activity there. Starkville, Mississippi, actually crossed over the $80 million barrier in deposits over the course of the quarter, and we are seeing loan growth in each of those categories at this point in time.

Some of what we have seen, Tuscaloosa is still growing at $2.6 million this quarter. Columbus, Mississippi, had over $2 million of loan growth. Starkville had $2.5 million of growth. East Tennessee had another really strong quarter. We had about $24 million of growth in those markets this quarter. Montgomery actually had some of the best originations we had, but we had two of our larger credits there totaling, combined, about $7 million or $8 million; were paid off with long-term fixed rates by two other banks over the course of the quarter. One of them was, I think, in the 3.25% range for maybe 10 years, and another one was below 3% in about the 2.99% range for, I think, seven years over that timeframe.

So, we had nice loan growth in Montgomery, absent that, but deposit wise, we are seeing the nice growth across the board with about $80 million in deposit growth in de novo. Now, this is premerger, Dave. M&F is going to add considerably to some of our markets. For example, Starkville, Mississippi, they will end up at about $90 million of loans and about $160 million in deposits postmerger. So, a lot of activity in quite a few of our markets as a result of that merger. Mitch Waycaster can give you a little pipeline information, and I am going to call on Mike Ross to give any other -- Mike is our Chief Commercial Officer. He can talk a little bit about the commercial loans.

Dave, as Robin mentioned earlier, the pipeline remains strong at $85 million. If you break that down by state, 36% would be in Tennessee; 22% in Alabama; 13% in Georgia, and 29% in Mississippi. That pipeline should result in approximately $32 million in growth in non-covered loans within 30 days. The current pipeline compares to $80 million in the prior quarter and $63 million same period prior year.

And, Dave, this is Mike Ross. We are still seeing -- our bankers are still seeing very active activity out there. The numbers Mitch gave you are deals that are approved and accepted or are in process of closing. But, in addition to that, we are always working a lot of additional opportunities, and we are still seeing a robust overall pipeline of additional opportunities that we have not gotten over the finish line yet. But we feel very good about a lot of them.

Dave, let me point out just something that we think is important in Starkville, Mississippi. We opened up in November 2011 and our growth, coupled with M&F, when you take into consideration only in-market deposits, not deposits from external sources in the market, we have just about achieved number one market share in that market now, along with some of our legacy markets that M&F deposits have also enhanced. So from a loans and deposits standpoint, we feel very good about what we achieved during the course of the quarter.

Great. Thank you, Robin. I will let someone else ask away.

Thanks, Dave.

Steven Scouten, KBW.

Good morning, gentlemen. Thank you for taking my call.

Morning, Stephen.

Forgive me if some of this was potentially covered in your comments, Robin. I jumped on a second late here, but I was looking at your comments in the release regarding -- obviously, you had really strong loan production, but you mentioned that you were reducing the average -- weighted-average of the loan terms. And I was wondering how you guys were able to maintain competitively with that reduction in terms or is that something you are seeing from peers as well?

We, I think, have put a concentrated effort to do that, Stephen. I am going to let Kevin Chapman give you a little bit more color on that.

Yes, Stephen, we have been talking for several quarters now just about the competitive pricing and how we respond to that. And, to Robin's point, we have made a concerted effort to rather than go longer on the curve, we have made a concerted effort to go shorter or variable. And so the comment in the release just shows what that effort had been over the last several quarters, and we actually saw loan yields on our new and renewed production increase slightly over second and first quarter, but our term, we shaved off about a quarter off of our repricing terms. We shaved off about three months.

Okay. So would you say you are able to compete a little bit more aggressively on pricing while reducing the terms so you still feel comfortable what -- you know, your sensitivity moving forward as rates do eventually rise?

Yes. And I will let Mike weigh in related to what he has seen on the ground related to competition, but overall, what we are trying to do is start to move and embed some asset sensitivity into our balance sheet. We are not doing it aggressively. Where we have been maintaining a neutral position, we are starting to move more towards an asset sensitivity position. This is one strategy to do that.

And, Stephen, this is Mike Ross. To your point, or your question on competition, there are a lot of assets that we look at and we choose not to pursue because of competition. But, we pursued the strategy that Kevin discussed, and we have still been able to grow loans with that strategy. And, frankly, if we had chose to compete on longer tenors on some of the loans that we are seeking out in the market, we would have grown that much more. But we didn't feel like it was a prudent way to grow our balance sheet with that type of asset with the long tenor and the long-term low fixed rate and so we chose not to compete on that basis. But, we try to compete more with relationship than price, and we try to pursue overall relationships. And we recognize we have to be competitive on price to some extent, but we are trying to manage our assets such that we are trying to build asset sensitivity into the balance sheet.

Okay. Great. And just one other question, if I could. On the expenses in the quarter -- I know you touched on it slightly in the release -- obviously, it looks like personnel and occupancy costs were up a little bit. Is that predominantly on the expansion into the ABL business or were there other lift outs or business line expansions that materially affected that as well?

We have mentioned previously that we have added staffing in both Memphis and Nashville -- about four or five people in each of those two markets as additional lift outs. Mike, you want to comment on the ABL and the equipment finance?

Yes. Our ABL from what you -- the ABL run rate as far as expenses are concerned were already embedded in the numbers from the same quarter. However, we have recently entered the equipment finance and leasing business and we hired a couple of veteran bankers in that space, and they have just joined as toward the end of the fourth quarter -- or excuse me, the end of the third quarter. So you see some of the costs -- some of the additional expenses related to that.

Of course, mortgage commissions have comprised a big part of that additional expense this year, also. Especially through the first two quarters and actually through July. Well, actually, through August because we pay commissions a month delayed.

Sure.

So eight months of the year we have had pretty elevated mortgage commissions also.

Okay. Great, guys. Well, thanks for taking my questions.

You bet. Thank you, Stephen.

Andy Stapp, Merrion Cap Group.

Good morning.

Morning, Andy.

What was your yield on loans in Q3?

Hey, Andy, this is Kevin. Q3, our yield on loans -- this is in our portfolio, not new and renewed, but it was a 482.

Okay. And, how much of your mortgage banking volume was purchased first as reified during the quarter.

Hey, Andy. This is Jim Gray. Our purchase volume for the quarter was 53% and that is up from the third quarter of 2012, was 31%. As we noted in the -- as Robin noted, our purchase volume was up 41% or approximately $39 million between the third quarter of 2012 and third quarter of 2013.

And could you also tell me what the purchase volume was at quarter end?

The purchase volume at quarter end was -- or for the third quarter, was $99 million.

I mean, the percentage. Did it change (multiple speakers) by quarter end?

I'm sorry. The percentage was roughly 53% and it was pretty stable through the entire quarter at -- right at 53%.

Oh, okay. Got you. And, were there any one-timers and other noninterest income?

Yes. Andy, we did have a BOLI debt claim in other noninterest income, but that was almost completely offset with some accelerated benefit owed to that individual's estate. It basically netted against one another, but the one time noninterest income was roughly $600,000 to $700,000. But, again, that was offset in salary and employee benefits, but it's an accelerated benefit to his beneficiaries.

Okay. All right. Thank you.

Thank you, Andy.

Michael Rose, Raymond James.

Hey, guys. Good morning. How are you?

Morning, Michael.

Hey, just following up on the mortgage question. How much of the gain on sale this quarter came from M&F versus legacy Renasant? And, again, just trying to get a sense for -- you know, going forward, it seems like the refi mix is still pretty high and probably should fall as we move into the back half of next year. Just trying to get a good sense from a run rate perspective post the fourth quarter, what we could expect on an ongoing basis between the two companies.

Michael, this is Jim Gray again. M&F, we really kind of merged M&F into our operation back prior to merger. We are actually funneling them through our wholesale division and so most of that -- most of the revenue from the M&F originators of the retail originators has been coming through into Renasant through the wholesale channel for at least through the second quarter. So M&F really did not have much in the way of wholesale business and we are kind of replenishing some of the wholesale that they had. But, so most of that has already been incorporated into Renasant. Kind of looking at going forward, our volume for the third quarter of $188 million was down from our volume in the second quarter. The second quarter was $246 million, which was really a very high quarter because we did have a lot of refi activity where people kind of getting their loans closed under the gun.

Going forward, we would anticipate volume has somewhat stabilized. It may be a little below about $188 million, but it still should be fairly strong. Our pipeline has stabilized back to the pre-second-quarter levels, and our margins have stabilized as well. One thing that did play into the third quarter is we did, since our pipeline dropped and because of derivative accounting, we did have a large negative accrual in the third quarter of approximately $800,000, reflecting the adjustment down in our pipeline. With our pipeline appearing to have stabilized and it has been stable for the first 15 days of this quarter, we would not anticipate a large negative accrual coming in the fourth quarter. And, without that negative accrual and with margins stabilized, we should see -- I believe there is some upside potential to the gain on sale number in the fourth quarter, provided all those things take place.

Okay. That's very helpful. And then -- I am sorry if I missed this. I got on the call little bit late. Is there any change or update any of the cost savings assumptions and would you expect the efficiency target post-M&F deal to be in line with what you originally laid out?

Hey, Michael. This is Kevin. Short answer is no. We are in line with our expected cost saves, and we are in line with what we expected to realize this year. And we still expect to fully realize all cost saves beginning Q1 of 2014.

Okay. That's helpful. Just one final question. How much of the pipeline, as it stands today, is from some of the de novo activity, including the Atlanta ABL team, relative to the core franchise?

As far as the pipelines on the de novo's, roughly 30% of the pipeline is coming from the de novo's. And as far as ABL is concerned, roughly 10% of the pipeline now is coming from ABL. And, as we have said for all year, the ABL team got all their systems in place and -- first part of the year, and they have been actively prospecting for business beginning about third quarter. First deal should close for the end of the month, and they have got an active, active list of term sheets out there in the market. And we feel very, very good about a lot of them.

Okay. So I should be that commentary as other places that your core markets are actually starting to show perhaps a little bit more growth in some of the de novo. If I go back a couple of quarters ago, I think the pipeline contribution was much larger from some of the de novo. Is that kind of a correct assumption?

I think that is a safe assumption.

Okay. Thanks for taking my questions, guys.

Thank you, Michael.

Matt Olney, Stephens.

Hey. Good morning, gentlemen.

Morning, Matt.

Hey. Piggybacking on Michael's question a few minutes ago on the cost saves and the M&F deal, I know in the past you have talked about focusing on the overall profitability of the bank and core operations, some of which is going to be cost saves from M&F. But you have also talked about the normalizing expenses from the OREO, the de novo's coming online. So, I guess my question is, how to we be thinking about the efficiency ratio beyond just the integration of M&F over the next few years?

One of our biggest initiatives, which you know, Matt, is getting our efficiency ratio down. And, as we work through 2014 and 2015, our goal is to get that efficiency ratio down closer to that 60% level and eventually cross over the barrier of being in the 50s.

And, Robin, does that goal -- are you assuming you need higher rates to get there or is that just based off what you see today within the core operations?

You know, obviously, higher rates will have a big impact on accelerating that timeframe. We think it will be much more difficult to get there without higher rates, but that would extend the term past that 15-year timeframe.

Okay. That's helpful, Robin. And, then, as far as your focus today obviously on the integration of the acquisition, but moving forward, it seems to me that you are in a good spot for additional M&A. So can you talk about your M&A strategy? When will you be back acquiring -- and I guess how would you characterize the overall M&A chatter, since you announced that M&F deal a few months ago?

Obviously, we have received inbound calls from both commercial bankers and investment bankers. We are looking forward next year to start the process of looking into potential opportunities, visiting, hopefully, with some potential opportunities over the course of the year. And when the feeling is right and when the deal works, we would look forward to future acquisitions in 2014 as a possibility.

Robin, just to add to that. Matt, this is Kevin. And I guess going back to future opportunities, as Robin mentioned, what we are looking for are transactions that are beneficial to both sides, much like with M&F. I think we can say that equally both shareholders benefited from this acquisition, and that's the type of opportunities that we are looking for.

Sure. Makes sense. Thanks, guys.

Thank you, Matt.

Kevin Fitzsimmons, Sandler O'Neill.

Good morning, guys.

Good morning, Kevin.

I apologize if you have covered this already. But, just on the margin, if you could just address whether there was any accretion income in there related to that deal and then, looking forward, what your general outlook is for the margin.

Kevin, in Q3, we did have some purchase accounting accretion related to the M&F book. That 386 reported includes about eight basis points of accretion. And, as we mentioned earlier, we are fighting margin compression through pricing, through loan pricing. Even though the yield curve steepened, starting back in June, we saw loan yields compared to pre-June to now being flat to declining. And we have been fighting that pressure. We mentioned that we have been going shorter on our repricing term and trying to maintain yield. We also are trying to bank both sides of the relationship, doing a better job of doing that. We have grown non-interest bearing DDA. With M&F, our non-interest-bearing DDA now stands at 18% of our total deposits. Excluding M&F, the legacy side, we actually grew it -- we grew it a 150 basis points. The legacy side we are at 16.5% non-interest-bearing DDA compared to a run rate of about 15%. So margin outlook, depending on how loan pricing plays out in the fourth quarter, we have been fighting margin compression.

Okay. And, just to follow on, I believe, Matt's earlier question on efficiency, so is it -- seems to be, when you take a step back, that loan growth has been very solid and been a big part of the story, especially with the de novo entries. But, as we look forward in coming quarters, is it fair to say efficiency and building back the capital ratios is going to be more the intermediate focus, especially as loan growth low, I would assume, still stay strong? But as you were de novo market to get larger and more substantial, just large numbers, tougher to drive that percentage of growth and the expense -- the revenues start to catch up with expenses at that point and we start to see some real traction on efficiency coupled with cost saves.

I think you are right on all points, Kevin. One thing that we want to continue doing is reconstituting our deposit mix, as Kevin mentioned. We are now up to 18% non-interest demand. Again, we are continuing to concentrate on changing that mix also. So yes on all counts, and we do feel that not only to our de novo's and some in market lift outs that we should continue to see nice loan growth comparable to others, but we will also see some positive activity in the efficiency ratio.

Okay. Thanks, guys.

Thank you, Kevin.

Follow-up, Andy Stapp, Merrion Cap Group.

All my questions -- remaining questions have been answered. Thank you.

Thank you, Andy.

John Rodis, FIG partners.

Good morning, guys.

Good morning, John.

Just a quick question on, can you just breakout what the contribution was from First M&F to fee income and operating expenses in the third quarter, I guess, for the one month?

Kevin.

Yes. Hey, John. On the expense side, it was around -- in between $1 million and -- let's call it $1.5 million on the noninterest income side. On the expense side, it's a little bit more difficult to breakout because we were doing some hiring on our end and in anticipation of people in Kosciusko, or on the M&F side, leaving. The expense contribution was in the $3 million range -- $3 million to $3.5 million range from M&F.

Okay. No, I was just sort of trying to get a ballpark. And, again, that was just for one month, obviously, since the deal closed on September 1.

Right.

And, just real quick, wanted to go back to the comment on mortgage banking and I guess the negative accrual. I think you said it was $700,000 up to $800,000, I guess. And you don't expect that. So is the right way to look at mortgage without that accrual? I guess, the $2.8 million would be have been closer to $3.5 million. I just want to make sure I am looking at that right.

That is correct.

Okay. Okay. Thanks, guys.

And, let me just qualify that statement. That is correct, looking at a fourth quarter number. That is correct. Assuming that same volume in the third quarter, however, the volume will probably be down just a little bit from that. So it is going to be somewhere in the -- believe somewhere in that $2.7 million up to $3.5 million range.

Okay. Thank you, guys.

Thank you, John.

Follow-up from Steven Scouten, KBW.

Hey, guys. Just one follow-up question on that mortgage. In terms of the fair value adjustment, I am not sure if you said it, but what was that in maybe the previous quarter, just for comparison purposes? And without an upward adjustment previously?

I think it was upward adjustment, but let's talk about the accrual adjustment. What that accrual adjustment reflects is just changes in the fair value.

Yes. (multiple speakers).

(multiple speakers). Yes. What we had was a reduction in production and also a reduction in spreads. The second quarter spreads for higher than the third quarter. So it's really just a rate and volume adjustment compared to what we projected then to be in the second quarter and what we actually realized in the third quarter.

Yes. Great.

There appears to be no further questions at this time. So, I would like to turn the conference back over to management for any closing remarks.

Thank you, Chad. We appreciate everyone's time and interest in Renasant Corporation and certainly look forward to speaking with everyone again in the future. Thank you.

Thank you very much. The conference has now concluded. Thank you for attending. You may now disconnect.