Reliant Bancorp, Inc. (NASDAQ:RBNC) Q2 2019 Earnings Conference Call Transcript

Jul 24, 2019 • 10:00 am ET

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Reliant Bancorp, Inc. (NASDAQ:RBNC) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the Reliant Bancorp's Second Quarter 2019 Earnings Conference Call. Hosting today's call is DeVan Ard, Reliant's President and Chief Executive Officer. He is joined by Dan Dellinger, Chief Financial Officer; Louis Holloway, Chief Operating Officer; and Alan Mims, Chief Credit Officer, who will be available during the question-and-answer session.

Please note, Reliant Bancorp's earnings release and this morning's presentation are available on the Investor Relations page of the company website at www.reliantbank.com. [Operator Instructions]

During this call, Reliant Bancorp may make comments, which constitute forward-looking statements. All forward-looking statements are subject to risks and uncertainties and other facts that may cause actual results and performance or achievements of Reliant Bancorp to differ materially from any results expressed or implied by such forward-looking statements. Many of such factors are beyond Reliant Bancorp's ability to control or predict, and listeners are cautioned not to put undue reliance on such forward-looking statements.

Additional factors, which could affect the forward-looking statements can be found in Reliant Bancorp's annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. Reliant Bancorp disclaims any obligation to update or revise any forward-looking statements contained in this presentation whether as a result of new information, future events or otherwise.

In addition, these remarks may include certain non-GAAP financial measures as defined by the SEC Regulation G. A presentation of the most directly comparable GAAP financial measures and a reconciliation of the non-GAAP measures to comparable GAAP measures is available on Reliant Bancorp's website at www.reliantbank.com.

I will now turn the presentation over to DeVan Ard, Reliant Bancorp's President and CEO. Please go ahead, sir.

Executive
DeVan D. Ard

Thank you, and good morning. Thanks for joining us for this morning's call to review our second quarter results. We appreciate your continued interest in our company.

Before I turn the call over to our Chief Financial Officer, Dan Dellinger, to discuss our financial results in more detail, I want to touch on a few highlights from a very successful quarter. I'm proud to report our company generated record net income attributable to common shareholders of $4.2 million and record earnings per share of $0.38 per diluted common share during the second quarter of 2019.

Strong organic loan production coupled with our ability to improve our balance sheet mix grew interest income to $20 million for the quarter, which is a 5% quarter-over-quarter improvement and a 21% increase over the second quarter of 2018.

Our bankers again delivered double-digit annualized loan growth, resulting in a 4% quarter-over-quarter increase, 16% annualized and 15% year-over-year. Loans have now grown for 16 consecutive quarters. Second quarter loan production totaled $150 million at a weighted average rate of 5.5%, and came from a broad range of loan categories with all markets contributing. Most impressive our loan growth continues to be 100% organic, derived from end market relationships our bankers have built over many years. Our high credit standards made generating growth more challenging, but our