Renasant Corp. (NASDAQ:RNST) Q3 2019 Earnings Conference Call - Final Transcript

Oct 22, 2019 • 10:00 am ET


Renasant Corp. (NASDAQ:RNST) Q3 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Renasant Corporation 2019 Third Quarter Earnings Conference Call and Webcast. [Operator Instructions] Please note this event is being recorded.

I'd now like to turn the conference over to Kelly Hutcheson with Renasant Corporation. Please go ahead.

Kelly Hutcheson

Thanks, Ian. Good morning, and thank you for joining us for Renasant Corporation's 2019 third quarter webcast and conference call. Participating in this call today are members of Renasant's executive management team.

Before we begin, let me remind you that 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 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 may be non-GAAP financial measures. A reconciliation of the non-GAAP measures to the most comparable GAAP measure can be found in our earnings release, which has been posted to our corporate site, under the Investor Relations tab in the News & Market Data section.

And now, I will turn the call over to Renasant Corporation, Executive Chairman, Robin McGraw.

Edward Robinson Mcgraw

Thank you, Kelly. Good morning, everyone, and thank you for joining us today. We closed the third quarter with solid results, despite having to navigate through two rate cuts, continued inversion of the yield curve and uncertainty and other macroeconomic factors during the quarter. Additionally, the Durbin Amendment became effective for us this quarter, reducing our debit card income about $3 million from the previous quarter.

You may recall, however, that we successfully managed our consolidated assets below the $10 billion threshold imposed by the Durbin Amendment as of December 31, 2017, which delayed the impact and allowed us to collect uncapped interchange fees for an additional year.

Our return on average assets with exclusions for the quarter was 1.23% and our return on tangible equity with exclusions was 14.23%. Our previously announced $50 million stock repurchase program, which began October of 2018 was completed in the early part of October. The company purchased approximately 1.5 million shares over the life of the plan. We're also pleased to announce that our Board of Directors has authorized another $50 million stock repurchase plan effective on October 18, 2019.

In July, we redeemed the subordinated notes that we assumed as part of the Brand acquisition. Interest expense in the notes was fixed at 8.5% and preferential capital treatment of the $30 million principal amount began to phase out at the end of the second quarter of this year. The repurchase programs and the debt redemption support our strategy of returning value to our