Renasant Corp (RNST) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Renasant Corporation 2023 Second Quarter Earnings Conference Call.

早上好，歡迎參加 Renasant Corporation 2023 年第二季度收益電話會議。

(Operator Instructions)

（操作員說明）

Please note, this event is being recorded. I would now like to turn the conference over to Kelly Hutcheson, Chief Accounting Officer with Renasant Corporation. Please go ahead.

請注意，此事件正在被記錄。我現在想將會議轉交給 Renasant 公司首席會計官 Kelly Hutcheson。請繼續。

Thank you for joining us for Renasant Corporation's 2023 Quarterly Webcast and Conference Call. Participating in this call today are members of Renasant's executive management team. Before we begin, please note that many of our comments during this call will be forward-looking statements, which involve risk and uncertainty.

感謝您參加 Renasant Corporation 的 2023 年季度網絡廣播和電話會議。今天參加本次電話會議的是 Renasant 執行管理團隊的成員。在開始之前，請注意，我們在本次電話會議中的許多評論將是前瞻性陳述，其中涉及風險和不確定性。

There are many factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements. Such factors include, but are not limited to, changes in the mix and cost of our funding sources, interest rate fluctuation, regulatory changes, portfolio performance and other factors discussed in our recent filings with the Securities and Exchange Commission, including our recently filed earnings release, which has been posted to our corporate site, www.renasant.com at the Press Releases link under the News and Market Data tab.

有許多因素可能導致實際結果與前瞻性陳述中表達的預期結果或其他期望存在重大差異。這些因素包括但不限於我們的資金來源組合和成本的變化、利率波動、監管變化、投資組合表現以及我們最近向美國證券交易委員會提交的文件中討論的其他因素，包括我們最近提交的收益新聞稿，已發佈到我們的公司網站www.renasant.com，位於“新聞和市場數據”選項卡下的“新聞稿”鏈接。

We undertake no obligation and we specifically disclaim any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. In addition, some of the financial measures that we may discuss this morning are non-GAAP financial measures. A reconciliation of the non-GAAP measures to the most comparable GAAP measures can be found in our earnings release. And now I will turn the call over to our Executive Vice Chairman and Chief Executive Officer, Mitch Waycaster.

我們不承擔任何義務，並且特別不承擔任何更新或修改前瞻性陳述的義務，以反映假設的變化、意外事件的發生或未來經營業績隨時間的變化。此外，我們今天上午可能討論的一些財務指標是非公認會計準則財務指標。非公認會計準則衡量標準與最具可比性的公認會計準則衡量標準的調節可以在我們的收益報告中找到。現在我將把電話轉給我們的執行副主席兼首席執行官米奇·韋卡斯特 (Mitch Waycaster)。

Thank you, Kelly. Good morning. We appreciate you joining the call today and your interest in Renasant. Although the current operating environment continues to be volatile and uncertain at times, our focus on basic banking principles and the safety and soundness of our institution has not wavered. Our second quarter results are highlighted by solid core earnings, strong asset quality metrics and a well diversified and granular core funding base.

謝謝你，凱利。早上好。我們感謝您今天加入電話會議以及您對 Renasant 的興趣。儘管當前的經營環境仍然時常波動和不確定，但我們對銀行基本原則和機構安全穩健的關注並未動搖。我們第二季度的業績突出體現在穩健的核心盈利、強勁的資產質量指標以及多元化且精細的核心資金基礎上。

In the second quarter, we took steps to delever the balance sheet. These actions enhance the strength and optionality of our financial condition and will aid earnings in future quarters. Loan growth was solid and reflects the vibrancy of markets in which we operate. Our financial outlook will continue to benefit from the economic growth throughout our footprint. I will now turn the call over to Kevin.

第二季度，我們採取措施去槓桿化資產負債表。這些行動增強了我們財務狀況的實力和選擇性，並將有助於未來幾個季度的盈利。貸款增長穩健，反映出我們經營所在市場的活力。我們的財務前景將繼續受益於我們業務範圍內的經濟增長。我現在將把電話轉給凱文。

Thanks, Mitch. Our second quarter earnings were $28.6 million or $0.51 per diluted share. Included in our results is an after-tax loss of $18.1 million or $0.32 from the sale of a portion of our securities portfolio. Excluding this loss, our core EPS was $0.83, which represents a $0.01 increase from the first quarter. The securities had an amortized cost of just over $500 million, and the proceeds from the sale were used to shrink the balance sheet by paying down wholesale borrowings.

謝謝，米奇。我們第二季度的收益為 2,860 萬美元，即稀釋後每股收益 0.51 美元。我們的業績中包括因出售部分證券投資組合而產生的稅後損失 1,810 萬美元或 0.32 美元。排除這一損失，我們的核心每股收益為 0.83 美元，比第一季度增加 0.01 美元。這些證券的攤銷成本略高於 5 億美元，出售所得收益用於通過償還批發借款來縮小資產負債表。

As Mitch mentioned in his comments, the actions we took during the quarter improved our capital and liquidity position and enhance future earnings and optionality. Breaking down net interest income, we experienced an increase in loan interest income of over $11 million on a linked quarter basis, driven by another quarter of solid loan growth, coupled with a 25 basis point increase to our loan yields. However, while loan yields increased, competitive pressures on deposit pricing impacted both our deposit mix and deposit costs this quarter, leading to an $18.5 million increase in deposit interest expense on a linked quarter basis. The balance sheet repositioning transaction was executed late in the quarter and had a nominal impact on net interest income during the second quarter.

正如米奇在評論中提到的，我們在本季度採取的行動改善了我們的資本和流動性狀況，並提高了未來的收益和選擇性。按淨利息收入細分，在貸款又一個季度穩健增長的推動下，我們的貸款利息收入環比增長了 1100 萬美元以上，加上我們的貸款收益率提高了 25 個基點。然而，雖然貸款收益率有所上升，但存款定價的競爭壓力影響了本季度我們的存款結構和存款成本，導致存款利息支出環比增加了 1,850 萬美元。資產負債表重新定位交易在本季度末執行，對第二季度的淨利息收入產生了名義上的影響。

The earnings benefit will be realized beginning in the third quarter. Considering the operating environment, our deposit portfolio performed well during the quarter, and our overall liquidity remains strong. Total deposits increased slightly during the quarter and our loan-to-deposit ratio held constant at 85%. Our team was successful in defending our core funding base as deposits, excluding brokered deposits, were up slightly late in the quarter after a seasonal decline in April.

盈利效益將於第三季度開始實現。考慮到經營環境，本季度我們的存款組合表現良好，整體流動性依然強勁。本季度存款總額略有增加，貸存比率穩定在 85%。我們的團隊成功地捍衛了我們的核心資金基礎，因為存款（不包括經紀存款）在四月份季節性下降後，在本季度末略有上升。

We are still operating in a volatile environment following the developments in the industry during the first quarter but we continue to focus heavily on growing core deposits and managing our funding costs. Excluding the loss on the sale of securities, noninterest income increased modestly quarter-over-quarter. Our capital markets, treasury solutions, wealth management, and insurance lines of businesses continued to deliver solid results.

隨著第一季度行業的發展，我們仍然在動蕩的環境中運營，但我們繼續重點關注增加核心存款和管理融資成本。排除證券銷售損失，非利息收入環比小幅增長。我們的資本市場、資金解決方案、財富管理和保險業務繼續取得穩健的業績。

Our mortgage division had a strong quarter as income from the division increased $1.3 million on a linked quarter basis. Interest rate lock volume was flat quarter-over-quarter, while our gain on sale margin increased 51 basis points. Noninterest expense increased $1.5 million from the fourth quarter, driven primarily by the impact from our annual merit increases which was offset slightly by savings in other areas.

我們的抵押貸款部門季度表現強勁，該部門的收入環比增長了 130 萬美元。利率鎖定量環比持平，而我們的銷售利潤率增長了 51 個基點。非利息支出較第四季度增加了 150 萬美元，這主要是由於我們年度績效增長的影響，但其他領域的節省略有抵消。

Our efficiency ratio, excluding the loss on the sale of securities was 63% for the quarter. Margin compression continues to put pressure on our efficiency but managing this ratio down continues to be a goal of ours. Improving operating leverage across all lines of businesses will help us meet this goal. I will now turn the call over to Jim.

本季度我們的效率比率（不包括證券銷售損失）為 63%。利潤壓縮繼續給我們的效率帶來壓力，但降低這一比率仍然是我們的目標。提高所有業務線的運營槓桿將幫助我們實現這一目標。我現在將把電話轉給吉姆。

Thank you, Kevin. As we walk through the quarter's results, I will reference slides from the earnings deck. Our balance sheet contracted $215 million from March 31. The sale of securities was offset by another quarter of solid loan growth. Loan growth in the second quarter was $165 million and represents an annualized growth rate of 5.6%. We continue to carry excess liquidity and our cash balances grew about $100 million on a linked quarter basis.

謝謝你，凱文。當我們瀏覽本季度的業績時，我將參考收益表中的幻燈片。自 3 月 31 日起，我們的資產負債表收縮了 2.15 億美元。證券銷售被又一個季度的穩健貸款增長所抵消。第二季度貸款增長 1.65 億美元，年化增長率為 5.6%。我們繼續持有過剩的流動性，我們的現金餘額環比增長約 1 億美元。

Slide 8 and additional slides in the appendix illustrate that we have a diverse loan portfolio with no significant concentrations in loan type or industry. And specific to our construction and non-owner-occupied commercial real estate portfolios, our exposure to individual sectors is granular and the portfolios are performing well.

幻燈片 8 和附錄中的其他幻燈片表明，我們擁有多元化的貸款組合，貸款類型或行業沒有明顯集中。具體到我們的建築和非業主自用商業房地產投資組合，我們對各個行業的投資非常細緻，而且投資組合表現良好。

Turning to Slide 9. Competition for deposits accelerated further this quarter and impacted both the mix and cost of deposits. Noninterest-bearing deposits represent 27% of total deposits compared to 31% at March 31. And our cost of deposits increased to 1.5%, which represents a cumulative beta of 27.

轉向幻燈片 9。本季度存款競爭進一步加劇，並影響了存款的結構和成本。無息存款佔存款總額的 27%，而 3 月 31 日為 31%。我們的存款成本增加至 1.5%，累積貝塔值為 27。

As you can see on Slides 10 through 12, the company's core deposit base and overall liquidity position remains strong. Similar to the loan portfolio, the deposit base is diverse and granular. The average deposit account is $29,000, and there are no material concentrations.

正如您在幻燈片 10 至 12 中看到的，該公司的核心存款基礎和整體流動性狀況仍然強勁。與貸款組合類似，存款基礎也是多樣化且細化的。平均存款賬戶為 29,000 美元，不存在重大集中情況。

Slide 13 touches on the available sources of liquidity. And as you can see, our availability significantly exceeds the balance of uninsured and uncollateralized deposits.

幻燈片 13 涉及可用的流動性來源。正如您所看到的，我們的可用性大大超過了無保險和無抵押存款的餘額。

Referencing Slide 15, all regulatory capital ratios are in excess of required minimums to be considered well capitalized and each of these ratios improved from the prior quarter.

參考幻燈片 15，所有監管資本比率均超過資本充足所需的最低要求，並且每個比率均較上一季度有所改善。

Turning to asset quality. We recorded a credit loss provision of $3 million and a recovery of credit losses on unfunded commitments of $1 million, which is recognized in noninterest expenses. Net charge-offs were $3.9 million, which represents an annualized rate of 13 basis points. And the ACL as a percentage of total loans declined 3 basis points to 1.63%.

轉向資產質量。我們記錄了 300 萬美元的信用損失準備金和 100 萬美元無資金承諾的信用損失收回，這些損失已在非利息支出中確認。淨沖銷額為 390 萬美元，年化率為 13 個基點。 ACL 佔貸款總額的百分比下降了 3 個基點至 1.63%。

Credit metrics are presented on Pages 17 through 19. Our past dues and criticized loans each improved quarter-over-quarter. The increase in nonperforming loans is attributable to a single relationship which is well collateralized and therefore, we expect no loss. While pleased with the underlying strength of our portfolio, we remain cautious about credit in the current environment. Our commitment to high underwriting standards remains and we attempt to identify potential problems early in order to mitigate losses to the bank.

第 17 頁至第 19 頁列出了信用指標。我們的逾期欠款和批評貸款均逐季度有所改善。不良貸款的增加歸因於抵押良好的單一關係，因此，我們預計不會造成損失。儘管對我們投資組合的潛在實力感到滿意，但我們對當前環境下的信貸仍持謹慎態度。我們對高承保標準的承諾仍然存在，並試圖儘早發現潛在問題，以減輕銀行的損失。

Moving on to profitability beginning on Slide 23. Net income declined $17.5 million on a linked quarter basis, driven by the after-tax loss of $18 million from the sale of securities. Excluding the loss on the sale of securities, our profitability metrics remain relatively stable. Core margin, which excludes purchase accounting accretion and interest recoveries, was 3.43%, down 20 basis points from Q1. Although loan yields were up 25 basis points, deposit pricing pressures more than offset the increase in yield.

從幻燈片 23 開始轉向盈利能力。由於出售證券導致稅後虧損 1800 萬美元，淨利潤環比下降 1750 萬美元。排除出售證券的損失，我們的盈利指標保持相對穩定。核心利潤率（不包括採購會計增值和利息回收）為 3.43%，較第一季度下降 20 個基點。儘管貸款收益率上升了 25 個基點，但存款定價壓力足以抵消收益率的上升。

Total cost of funding increased 47 basis points to 1.8% for the quarter, although we anticipate some relief in the short term from the balance sheet repositioning transaction, competitive pressures are likely to persist, and we believe funding costs will continue to increase in coming quarters. Kevin touched on the highlights within noninterest income and expense. We are encouraged by the results of our mortgage division. Although there was an uptick in our overall noninterest expenses this quarter, we remain committed to improving operating leverage and managing our expense base remains a priority. I will now turn the call back over to Mitch.

本季度總融資成本增加 47 個基點至 1.8%，儘管我們預計資產負債表重新定位交易會在短期內有所緩解，但競爭壓力可能持續存在，我們認為未來幾個季度融資成本將繼續增加。凱文談到了非利息收入和支出的亮點。我們對抵押貸款部門的業績感到鼓舞。儘管本季度我們的整體非利息支出有所增加，但我們仍然致力於提高運營槓桿，管理我們的支出基礎仍然是首要任務。我現在將把電話轉回給米奇。

Thank you, Jim. We continue to emphasize time-tested banking principles as we operate the bank. These fundamentals not only protect our customers and shareholders, but also position us to generate attractive shareholder returns. I will now turn the call over to the operator for questions.

謝謝你，吉姆。我們在經營銀行時繼續強調經過時間考驗的銀行原則。這些基本原則不僅保護我們的客戶和股東，而且使我們能夠創造有吸引力的股東回報。我現在將把電話轉給接線員詢問問題。

(Operator Instructions)

（操作員說明）

The first question comes from Thomas Wendler with Stephens.

第一個問題來自托馬斯·溫德勒和斯蒂芬斯。

I just wanted to go back to the security sale. You said it happened late in the quarter. Can you just give us an idea of the impacts on 3Q from this then maybe like an earn back for the trade?

我只是想回到證券銷售。你說這發生在本季度末。您能給我們介紹一下這對第三季度的影響嗎？也許就像交易的收益一樣？

Thomas, this is Jim. So you're correct, a series of trades and they took place large in the first part of June. So the impact on Q2 was de minimis. Looking forward, I would say that our rationale and interest in that trade was really driven secondarily by earnings, but mainly by the impact that trade would have on our balance sheet. And what we liked about this trade was that we would delever the balance sheet, reduce indebtedness and give us more flexibility in the balance sheet side first and foremost.

托馬斯，這是吉姆。所以你是對的，一系列交易在六月上旬發生了大量。因此，對第二季度的影響微乎其微。展望未來，我想說，我們對該貿易的理由和興趣實際上是由收益驅動的，但主要是由貿易對我們的資產負債表產生的影響驅動的。我們喜歡這項交易的地方在於，我們可以去槓桿化資產負債表，減少債務，並首先在資產負債表方面給予我們更大的靈活性。

And so that was the primary impetus for considering this trade. It did have the benefit, as you point out, benefiting future earnings. We essentially sold securities that were yielding about 2.9%, and we took those monies and paid down advances that were costing us roughly 5.5%. So the breakeven calculation roughly 2 years, plus or minus, but very pleased with the execution that we got and the impact that it had on the balance sheet.

所以這是考慮這項交易的主要動力。正如您所指出的，它確實有好處，有利於未來的收益。我們基本上出售了收益率約為 2.9% 的證券，然後我們拿了這些錢並支付了預付款，這讓我們損失了大約 5.5% 的成本。因此，盈虧平衡計算大約需要兩年（加減），但我們對我們的執行情況及其對資產負債表的影響感到非常滿意。

That's great color. And then just one more for me. You guys had an annual merit increase this quarter. Is there going to be any impact in 3Q from that merit increase?

那顏色真棒。然後再給我一個。你們這個季度的年度績效增長了。績效增長會對第三季度產生影響嗎？

Tom, this is Kevin. There won't be. I mean, there may be some additional hires or at a cycle merit increases. But merit increase (inaudible) effect March 1. Some of that was recognized in Q1, but the full quarter impacted in Q2. If you know the salaries, employee benefit, it's up about $800,000. $600,000 of that is going to be related to mortgage commission increase. If you look, the mortgage income is up about $1.2 million, and there's going to be a corresponding increase on the expense side related to that. So as you back out mortgage, the increase in salaries was just a couple of hundred thousand dollars for the rest of the company.

湯姆，這是凱文。不會有的。我的意思是，可能會增加一些員工，或者在一個週期內增加績效。但績效增加（聽不清）會在 3 月 1 日生效。其中一些在第一季度得到認可，但整個季度都會在第二季度受到影響。如果你知道工資和員工福利，大約增加了 80 萬美元。其中 60 萬美元將與抵押貸款佣金增加有關。如果你看一下，抵押貸款收入增加了約 120 萬美元，與之相關的費用方面也會相應增加。因此，當你取消抵押貸款時，公司其他部門的工資只增加了幾十萬美元。

The next question comes from Will Jones with KBW.

下一個問題來自 KBW 的 Will Jones。

I just wanted to go back to the bond sale for a minute. I mean, obviously, the math is very financially compelling, especially if you just look at that exchange in yield that you get in there. Is there any way to frame what kind of margin benefit will be moving -- obviously, the third quarter will see a nice benefit there and that run rate through the end of the year. But Jim, is there just any way or any kind of context you can give us on where you -- or maybe a range of where you think the margin could fall out in the back half of the year here?

我只想回到債券銷售一分鐘。我的意思是，顯然，數學在財務上非常有吸引力，特別是如果你只看你在那裡獲得的交易所的收益率。有沒有什麼方法可以確定什麼樣的利潤率效益會發生變化——顯然，第三季度將看到不錯的效益，並且到年底的運行率都會如此。但是吉姆，您是否可以向我們提供任何方式或任何類型的背景信息，或者您認為今年下半年利潤率可能會下降的一系列情況？

It's a good question. And certainly, the trade benefits the earnings power of the company, there's two ways about that. But I would say this, as we look forward and think about the margin and impact on NII, I look at that trade at least from an earnings perspective, is helping to moderate the declines and the pressure that we're feeling on the margin industry-wide and certainly it [rent] us on. So I see it -- we're certainly better off having executed the trade in terms of what our performance will be in margin in the second half. But we still feel though that there are pressures on the margin, and we're likely to see some -- those pressures in the second half, so resulting in declines in the margin and in NII. But I will say those declines will be much more moderate than what we saw from Q1 to Q2, and that's the real benefit. So the pressures remain, but I would directionally say to you that margin and NII will be under pressure in the second half and down moderately from what we saw in Q2.

這是一個好問題。當然，這種貿易有利於公司的盈利能力，有兩種方法可以實現這一點。但我想說的是，當我們展望並思考利潤率和對 NII 的影響時，我至少從收益的角度看待該交易，這有助於緩解我們對利潤率行業感受到的下降和壓力-範圍廣泛，當然它[租]我們。所以我認為——就下半年我們的利潤表現而言，執行交易肯定會更好。但我們仍然感到利潤率存在壓力，而且我們很可能會在下半年看到一些壓力，從而導致利潤率和淨投資淨值下降。但我想說，這些下降將比我們從第一季度到第二季度看到的要溫和得多，這才是真正的好處。因此，壓力仍然存在，但我想直接告訴你們，下半年利潤率和NII將面臨壓力，並且比我們在第二季度看到的情況略有下降。

Understood. That's very helpful. And then just separately on the margin, we saw a little bit of a catch-up beta this quarter. Just curious on the outlook where you see that trending for the year if you guys have any form of updated deposit beta expectations? And I know you brought on a little bit more broker deposits this quarter. Can you maybe just give us a sense of the tenor of those deposits and maybe rate or duration. That would be helpful.

明白了。這非常有幫助。然後，就邊緣而言，我們在本季度看到了一些追趕的測試版。只是好奇，如果你們有任何形式的更新存款貝塔預期，你們會看到今年的趨勢嗎？我知道您本季度獲得了更多的經紀人存款。您能否讓我們了解一下這些存款的期限以及利率或期限。那會有幫助的。

Sure. So I'll start with the broker deposits. And as you pointed out, we did see an increase in broker deposits. And I will go back to that bond right for a second because, again, what we like first and foremost about that trade was the delevering that allowed us to deal (inaudible) better home loan banking (inaudible). And if we think about alternative sources of funding, we paid down a lot of federal home loan bank outstanding and plan to pay down more of that debt in the quarter. And likewise, above, we sort of view it as a bridge. I mean, here we are in a period of time where traditional core deposits are tough to find and gather.

當然。所以我將從經紀人存款開始。正如您所指出的，我們確實看到經紀人存款有所增加。我將暫時回到該債券，因為我們首先喜歡該交易的是去槓桿化，使我們能夠處理（聽不清）更好的住房貸款銀行業務（聽不清）。如果我們考慮其他資金來源，我們償還了銀行未償還的大量聯邦住房貸款，併計劃在本季度償還更多債務。同樣，在上面，我們將其視為一座橋樑。我的意思是，我們正處於一個很難找到和收集傳統核心礦床的時期。

So we view that as a bridge, and it is up. But over the next few quarters, our goal, if we can accomplish it is to pay down of broker deposits. I mean we want to be a core-funded bank, and these alternative sources have benefited us and certainly, we're open and have used them. But that's our goal as it relates to that [thinking] about the funding. As it relates to the betas, what I would say is this, that the last couple of quarters, we have upped that -- those assumptions on deposit betas. And currently for interest-bearing deposit beta, we're using about 50% -- deposit beta 50%.

所以我們將其視為一座橋樑，而且它已經建成了。但在接下來的幾個季度，如果我們能夠實現的話，我們的目標是償還經紀人存款。我的意思是，我們希望成為一家核心資金銀行，這些替代來源使我們受益，當然，我們是開放的並已經使用了它們。但這是我們的目標，因為它與資金的[思考]有關。由於它與貝塔係數有關，我想說的是，在過去的幾個季度中，我們提高了對存款貝塔係數的假設。目前，對於有息存款貝塔值，我們使用的是大約 50%——存款貝塔值 50%。

Okay. Very helpful. And then maybe for Mitch, just bigger picture on this bond sale. It feels like the rationale was clearly what we saw liquidity build in March, the weather storm and kind of wait for the dust to settle and 3 months down the road, we've kind of removed ourselves from the deposit crisis and then it's time to rightsize the balance sheet and get it to get funding in a more efficient place. I guess, first Mitch, is that just kind of how you frame this trade you guys made here? And then just in terms of timing, what gives you confidence that right now and right here was kind of like the time of repositioning the balance sheet and you kind of put yourself behind this deposit and liquidity crisis?

好的。很有幫助。也許對於米奇來說，這次債券銷售的更大前景。感覺原因顯然是我們在 3 月份看到的流動性增加、天氣風暴和等待塵埃落定，3 個月後，我們已經擺脫了存款危機，然後是時候採取行動了。調整資產負債表規模並使其在更有效的地方獲得資金。我想，首先，米奇，你們就是這樣構建你們在這裡進行的交易的嗎？那麼就時機而言，是什麼讓您有信心，現在就在此時此刻，就像重新定位資產負債表的時候一樣，您有點將自己置於這場存款和流動性危機的背後？

Yes. So I think as I mentioned in the opening comments, just enhancing the strength and the optionality for us going forward. Something we give a lot of thought to and we thought it timely and we were in a position to execute this trade. And we thought, like I say, giving us optionality and as we look forward and just position us for strength and certainly, there's earning benefits from it. But as Jim mentioned, we're more focused on just the strength of the balance sheet and just maintaining that optionality.

是的。所以我認為正如我在開場評論中提到的，只是增強我們前進的力量和選擇性。我們對此進行了很多思考，我們認為這是及時的，我們有能力執行這筆交易。我們認為，就像我說的那樣，給我們選擇權，當我們展望未來時，我們會增強實力，當然，我們會從中獲得收益。但正如吉姆提到的，我們更關注資產負債表的實力並保持這種選擇性。

I would add this, Will, to Mitch's comments. We obviously think a lot about the balance sheet and protecting the strength of the balance sheet, enhancing the strength of the balance sheet, I think about it from a capital and liquidity point of view and how we fund it and so forth. And -- so there are a number of things that we think about that could improve the strength of it. And in this particular topic, we started to think about late last year. And I think to your question, some of it was just finding the right time for the financial pieces of this to line and make more good sense. And so we're sort of navigating through the industry issues in early March. So it has been on our mind and we were just -- we're waiting for the right window, but that came to us the end of the June and so that's what we put in place.

威爾，我會將這一點添加到米奇的評論中。顯然，我們對資產負債表以及保護資產負債表的強度、增強資產負債表的強度進行了很多思考，我從資本和流動性的角度以及我們如何為其提供資金等角度進行思考。而且——所以我們考慮了很多可以提高它的強度的事情。在這個特定的主題中，我們從去年年底開始思考。我認為對於你的問題，其中一些只是找到合適的時間來整理財務部分並使其更有意義。因此，我們將在三月初解決行業問題。所以這一直在我們的腦海裡，我們只是——我們正在等待合適的窗口，但這在六月底來到了我們身邊，所以這就是我們所採取的措施。

The next question comes from Michael Rose with Raymond James.

下一個問題來自邁克爾·羅斯和雷蒙德·詹姆斯。

Hope all is well. Just wanted to get a sense for loan production here, Mitch, and what the outlook could be here in the near term, just the competitive dynamics and what you guys are kind of seeing across your footprint?

希望一切安好。米奇，我只是想了解一下這裡的貸款生產情況，以及短期內的前景，競爭動態以及你們在你們的足跡中看到了什麼？

Sure. Thank you, Michael. Well, another solid quarter of production. As we've seen in the last 2 or 3 quarters, of course, we see pipelines continue to moderate some. And I would say, again, that's driven by our discipline in pricing, funding, underwriting and demand to the point of your question. But as I mentioned, we operate in vibrant markets and we continue to service and grow relationships. Our production this past quarter was $413 million. That compares to $415 million in the prior quarter. So again, solid production good net result this quarter, $169 million or roughly 6%, and that compares to $188 million or just over 6%, between 6% and 7% the prior quarter.

當然。謝謝你，邁克爾。嗯，又是一個穩定的季度生產。當然，正如我們在過去兩三個季度所看到的，我們看到管道繼續放緩。我想再說一遍，這是由我們在定價、融資、承保和需求方面的紀律推動的，直到你提出問題。但正如我所提到的，我們在充滿活力的市場中運營，我們將繼續提供服務並發展關係。上個季度我們的產量為 4.13 億美元。相比之下，上一季度為 4.15 億美元。同樣，本季度的穩健生產淨利潤為 1.69 億美元，增幅約為 6%，而上一季度的淨利潤為 1.88 億美元，增幅略高於 6%，介於 6% 至 7% 之間。

As I've mentioned before, kind of the governor on that net result is what we see in payoffs, payoffs were up modestly this quarter. But overall, compared to the prior year, of course, they have moderated as well. So as far as looking forward, the good thing about our portfolio, as Jim and Kevin mentioned in opening remarks, we're granular on both sides of the balance sheet. And that's reflected in this quarter's production geographically, we continue to see all of our regions.

正如我之前提到的，最終結果的州長是我們在收益中看到的，本季度收益略有上升。但總體而言，與前一年相比，當然，它們也有所放緩。因此，就未來而言，正如吉姆和凱文在開場白中提到的那樣，我們的投資組合的好處是，我們在資產負債表的兩側都很精細。這反映在本季度的生產地理上，我們繼續看到我們所有的地區。

Our business lines contribute well to our results as well as the granularity of our loan types that we continue to have pointed to in the past. But again, it's reflective of our book with about 30% of that production coming from the consumer kind of 1:4 family, another 30% from small business credits, less than $2.5 million and then another 24% or so from commercial credits, those above $2.5 million representing C&I owner-occupied commercial real estate type credits.

我們的業務線對我們的業績以及我們過去一直指出的貸款類型的粒度做出了很大貢獻。但同樣，這也反映了我們的書，大約 30% 的產出來自 1:4 家庭的消費者，另外 30% 來自小企業信貸，不到 250 萬美元，然後另外 24% 左右來自商業信貸，這些超過250 萬美元代表C&I 業主自用商業房地產類型信貸。

And then our corporate commercial business lines continue to contribute well. That makes out the balance of this quarter's production. So we continue to hit on many different cylinders, cylinders relative to our ability to produce and all of that, along with our markets, gives us optimism about our ability going forward. And as to our markets, I would point again to immigration, economic development in sectors like manufacturing, distribution, medical, government education. All of those contribute to a very vibrant, strong marketplace that we do business. And with all that, I would expect this quarter to be generally reflective of what we've seen in Q1 and Q2 relative to our net. All of that depending somewhat on the level of payoffs and just the continued economic activity that I referred to.

然後我們的企業商業業務線繼續做出良好的貢獻。這就是本季度產量的平衡。因此，我們繼續嘗試許多不同的氣缸，與我們的生產能力相關的氣缸，所有這些，以及我們的市場，讓我們對我們未來的能力感到樂觀。至於我們的市場，我想再次指出移民、製造、分銷、醫療、政府教育等領域的經濟發展。所有這些都為我們開展業務提供了一個充滿活力、強大的市場。儘管如此，我預計本季度將大致反映我們在第一季度和第二季度相對於我們的淨值所看到的情況。所有這些都在一定程度上取決於回報水平以及我提到的持續經濟活動。

Mitch, that's great color. And that actually kind of touches on my follow-up, which is if the Fed raises today and signal that, that's kind of it, I mean, you guys have an expectation for what payoffs could look like here over the next few quarters? And then how does the acquisition of Republic earlier this year in the ABL business contribute to this quarter's growth and expectations in the back half.

米奇，這個顏色真棒。這實際上有點觸及我的後續行動，即如果美聯儲今天加息並發出信號，就是這樣，我的意思是，你們對未來幾個季度的回報會是什麼樣子有預期？那麼今年早些時候收購Republic的ABL業務對本季度的增長和下半年的預期有何貢獻。

Yes. Thank you. Yes. So I don't know that an additional move in the Fed would have a significant change in the payoffs likely at this point. But relative to Republic, we have been very pleased. The integration with that company into our was the strong both business development and underwriting discipline in that company. We have been very pleased with what we've seen so far and just merging them into our company, it's been received very well the referral of business, I would say, both ways within both companies. We have been very pleased and was a meaningful contributor in Q1 and Q2. And looking at the pipeline, we certainly expect that to continue.

是的。謝謝。是的。因此，我不知道美聯儲目前採取的額外舉措是否會對收益產生重大變化。但相對於Republic，我們已經非常高興了。與該公司的整合是該公司強大的業務發展和承保紀律。我們對迄今為止所看到的情況非常滿意，只是將它們合併到我們的公司中，我想說，兩家公司內部都收到了很好的業務推薦。我們非常高興，並且在第一季度和第二季度做出了有意義的貢獻。看看管道，我們當然希望這種情況能夠繼續下去。

Maybe just one more for me, switching to expenses and maybe how it ties in to mortgage this quarter a little bit stronger. I assume that with some of the expenses coming in a little bit higher than the guidance range you'd given. Can you just give us some thoughts on where the efficiency ratio was for the mortgage company and what the profitability looks like and what the expense range could look like for the third quarter.

也許對我來說還有一個問題，那就是轉向支出，也許它與本季度抵押貸款的關係會更強一些。我認為有些費用會比您給出的指導範圍略高一些。您能否給我們一些關於抵押貸款公司的效率比率、盈利能力以及第三季度費用範圍的想法。

Sure. Thanks. Michael, Kevin again. So yes, as we look at mortgage, mortgage again, continues to be a very volatile and rough environment, particularly compared to 2 to 3 years ago. The great thing about our mortgage company is under their leadership, we continue to be profitable. And we know that's an anomaly compared to what's happening in the industry, but also would say it's not the accident. But more or less efficient. I think our efficiency ratio for the quarter is going to be in the mid-90s. If you back them out, they weigh on our efficiency ratio by 2 percentage points.

當然。謝謝。邁克爾，又是凱文。所以，是的，當我們審視抵押貸款時，抵押貸款仍然是一個非常不穩定和艱難的環境，特別是與兩三年前相比。我們抵押貸款公司的偉大之處在於在他們的領導下，我們持續盈利。我們知道，與行業中正在發生的情況相比，這是一個反常現象，但我們也可以說這不是意外。但效率或多或少。我認為本季度我們的效率比率將在 90 年代中期。如果你反對它們，我們的效率就會降低 2 個百分點。

And as we look at the expense increase at the top of the house, the majority of that is going to be attributable to mortgage, we talked about earlier in the call, just a salary benefits. It was up growing so it was up $800,000, $600,000 of that was mortgage. If you look at some of the other expenses in the categories, particularly in other mortgage is going to be contributing to that just for some of the costs to close the loans. As we look at expense guidance, we're probably going to be a little bit volatile for the next couple of quarters. And as far as the headwinds that we have versus some of our internal expense initiatives. But we do think -- but as we look out at expenses for maybe the next couple of quarters are a little bit flattish.

當我們看到房子頂部的費用增加時，其中大部分將歸因於抵押貸款，我們在電話會議早些時候談到過，只是工資福利。它在不斷增長，因此增加了 80 萬美元，其中 60 萬美元是抵押貸款。如果你看看這些類別中的一些其他費用，特別是其他抵押貸款，那麼這只是關閉貸款的一些費用。當我們考慮費用指導時，接下來的幾個季度我們可能會有點波動。至於我們的一些內部支出計劃所面臨的阻力。但我們確實認為，但當我們考慮未來幾個季度的支出時，可能會有點平淡。

Some of that's going to be driven by mortgage. We do expect mortgage to have another good Q3. So expenses could be -- remain elevated compared to what we've guided to in the past, just because of mortgage. But again, continue to focus on initiatives to bring expenses down, bring revenue up and ultimately get our efficiency ratio back down towards that 60% range, which is in the current environment of margin compression is probably going to take a few more quarters than we anticipated.

其中一些將由抵押貸款推動。我們確實預計抵押貸款第三季度將再次表現良好。因此，僅僅因為抵押貸款，與我們過去指導的費用相比，費用可能仍然較高。但再次強調，繼續專注於降低開支、增加收入的舉措，並最終使我們的效率比率回落至 60% 的範圍，在當前利潤率壓縮的環境下，這可能需要比我們多幾個季度的時間預計。

The next question comes from Stephen Scouten with Piper Sandler.

下一個問題來自 Stephen Scouten 和 Piper Sandler。

I guess I wanted to just follow up briefly on deposits. You talked about, I think, Jim, maybe you said you wanted to look to replace a lot of those broker deposits over the coming quarters. Where do you think that would come from? Would that likely be customer CDs at this point in time? And then kind of how do you think about noninterest-bearing deposits and where those balances might trend from here potentially bottom?

我想我只是想簡單地跟進一下存款情況。我想，吉姆，你談到，也許你說你想在未來幾個季度更換大量經紀人存款。你認為這會從哪裡來？此時這可能是客戶 CD 嗎？那麼您如何看待無息存款以及這些餘額從這裡可能觸底的走向？

Stephen. So yes, I mean our focus remains core deposit growth, and we have a number of initiatives. So we're not unusual in that category with other banks. But we've got a real focus there and our aspirations are to try to grow core deposits, and we appreciate the significant headwinds in the industry, but that's our target. And we -- and of course, loan (inaudible) plays a role in this -- funding it. But our goal is that over the next few quarters, try to reduce that brokered number. In terms of NIB, I think we're roughly around 27% or 28%. Don't know for sure where that goes, but a reasonable expectation maybe over the next 2 or 3 quarters as you see that get in the mid-20s. Of course, it's a real bow given where rates are and the higher -- the longer the made higher, the more difficult that challenge becomes on NIB balances. So a lot of (inaudible) through specials and promotions on the deposit side. But our goal is to return to close to 100% core funded bank as soon as we can.

史蒂芬.所以，是的，我的意思是我們的重點仍然是核心存款增長，並且我們有許多舉措。因此，與其他銀行相比，我們在這一領域並不罕見。但我們真正關注的是這一點，我們的願望是嘗試增加核心存款，我們認識到該行業面臨的巨大阻力，但這就是我們的目標。我們——當然，貸款（聽不清）在這方面發揮了作用——為其提供資金。但我們的目標是在接下來的幾個季度中嘗試減少經紀數量。就 NIB 而言，我認為我們大約在 27% 或 28% 左右。不確定會發生什麼，但合理的預期可能是在接下來的 2 到 3 個季度，正如你所看到的，在 20 多歲左右。當然，考慮到利率越高，利率越高——利率越高，NIB 餘額面臨的挑戰就越困難。因此，存款方面有很多（聽不清）特價和促銷活動。但我們的目標是盡快恢​​復接近 100% 核心資金的銀行。

Got it. Helpful color, Jim. And I'm curious just kind of at a high level, how -- obviously, we had this turmoil in March and May. And now the market is telling us everything, okay, I guess, right? So I'm wondering how your business model might have changed, if in any ways? And kind of as you think out longer term, how you want to focus to take advantage of any dislocation or opportunities that may exist for the bank to continue to succeed.

知道了。有用的顏色，吉姆。我很好奇，從高層次上看，我們在 3 月和 5 月顯然是如何經歷了這場動蕩的。現在市場告訴我們一切，好吧，我想，對吧？所以我想知道您的商業模式可能會發生什麼變化（如果有的話）？當你從長遠考慮時，你希望如何集中精力利用可能存在的任何混亂或機會，使銀行繼續取得成功。

Yes, Stephen, certainly, we're focused today on the economic uncertainties, whatever those might be. I guess there's varying opinions relative to maybe where we would be in that cycle. But certainly, what we will do is remain very disciplined in evaluating opportunities. But certainly, as we have consistently done in the past, we will remain opportunistic. And whether that be new talent, new markets, strategic partners, either banks or nonbanks. We talked a minute ago about our success with Republic. I would also add relative to Southeast commercial, which we added earlier last year as well. We continue to evaluate opportunities that drive shareholder value that align with our culture in our business model and risk appetite. So as we go forward, we will continue to do that and be opportunistic.

是的，斯蒂芬，當然，我們今天關注的是經濟不確定性，無論這些不確定性是什麼。我想對於我們在這個週期中所處的位置可能存在不同的看法。但當然，我們要做的就是在評估機會時保持非常嚴格的紀律。但當然，正如我們過去一貫所做的那樣，我們將繼續保持機會主義。無論是新人才、新市場、戰略合作夥伴，無論是銀行還是非銀行。一分鐘前我們談論了我們與 Republic 的成功。我還要添加相對於東南商業的內容，我們去年早些時候也添加了該內容。我們將繼續評估能夠推動股東價值的機會，這些機會與我們的商業模式和風險偏好的文化相一致。因此，當我們前進時，我們將繼續這樣做並抓住機會。

Makes sense. And do you think today your loan-to-deposit ratio giving you a little bit more room than maybe some of your peers could allow you to bring on talent. And would you want to do that today? Or are we still in a period of maybe we wait and see how this shakes out and get more aggressive as we get down the line a little bit?

說得通。您是否認為今天您的貸存比為您提供了比某些同行更多的空間，可以讓您吸引人才？今天你想這樣做嗎？或者我們是否仍然處於等待的時期，看看情況如何發生變化，並在我們進一步推進時變得更加激進？

Yes. Well, I think for the right talent, that's something you always take the opportunity when those opportunities come along. We actually had two additions this past quarter, one in Nashville, one in Atlanta. So we're always mindful of that and try to stay positioned where that's always something that we would take that opportunity. So Kevin, a follow-up comment there?

是的。嗯，我認為對於合適的人才來說，當機會出現時，你總是要抓住機會。事實上，我們在上個季度增加了兩處新設施，一個在納什維爾，一個在亞特蘭大。因此，我們始終牢記這一點，並努力保持在我們始終會抓住機會的位置。凱文，有後續評論嗎？

Yes. Steve, I think it's a great question. And we just simply add is as we look at how we positioned our balance sheet either from a liquidity or from a capital standpoint. We're still looking for business. And we recognize that there was a shock for the system in March, and there may be some shocks in the future. We don't know. But we manage -- I'm not sure we're really managing any different today than we were over the last couple of years. There's capacity on our balance sheet to grow, but it's got to be -- we got to have relationships. We told you that 3 years ago or 5 years ago, we want to develop relationships. There's very little capacity on our balance sheet, either for liquidity or capital for a transaction.

是的。史蒂夫，我認為這是一個很好的問題。我們只是簡單地補充一下，當我們從流動性或資本的角度來看如何定位我們的資產負債表時。我們還在尋找生意。我們認識到3月份系統出現了震盪，未來可能還會出現一些震盪。我們不知道。但我們的管理方式——我不確定我們今天的管理方式與過去幾年相比是否真的有什麼不同。我們的資產負債表有增長的能力，但我們必須建立關係。我們在三年前或五年前就告訴過你，我們想要發展關係。我們的資產負債表上無論是流動性還是交易資本的能力都很小。

For that transaction, we're going to get really well compensated. So that tends to lead not that doing any transactions. So we'd just say that our focus is the same. There's a highly focus on deposits. But there is also a highly focus on deposits in 2021 when everybody was (inaudible) liquidity. So we think with how we're positioned, not only from a balance sheet from a liquidity, capital, but also from an openness to higher talent, if, A, quality talent is available, we're going to hire that -- we will hire them. If it's B and C talent, we may pass. B and C talent typically is always available. But if there's A caliber talent, we will hire them because they don't become available very often.

對於這筆交易，我們將獲得非常豐厚的補償。因此，這往往會導致不進行任何交易。所以我們只能說我們的重點是相同的。人們高度關注存款。但 2021 年大家都高度關注存款（聽不清）。因此，我們思考我們的定位，不僅從流動性、資本的資產負債表，而且從對高級人才的開放態度，如果，A，有優質人才，我們將僱用他們——我們會僱用他們。如果是B級和C級人才，我們可能會通過。 B 級和 C 級人才通常隨時可用。但如果有優秀人才，我們就會僱用他們，因為他們並不經常出現。

This concludes our question-and-answer session. I would like to turn the conference back over to Mitch Waycaster, Renasant CEO, for any closing remarks.

我們的問答環節到此結束。我想將會議轉交給 Renasant 首席執行官米奇·韋卡斯特 (Mitch Waycaster) 發表閉幕詞。

Very good. Thank you, Drew, and thank you to each of you for joining the call today. We plan to participate in the Raymond James Conference on September 6 and the Stephens Conference on September 19.

非常好。謝謝德魯，也感謝大家今天加入電話會議。我們計劃參加9月6日的雷蒙德·詹姆斯會議和9月19日的斯蒂芬斯會議。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。