Renasant Corporation

Good day and welcome to the Renaissance Corporation 2020 First Quarter Earnings Conference Call and Webcast. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Kelly Hutchinson. Please go ahead.

Hey, good morning, and thank you for joining us for Renaissance Corporation's 2020 First Quarter Webcast and Conference Call. Participating in this call today are members of Renaissance Executive Management Team. Before we begin, many of our comments during this call will be forward-looking statements, which involve risk and uncertainty. 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. Obviously, the impact of the COVID-19 pandemic the federal, state, and local measures taken to arrest the virus, as well as all of the follow-on effects from this pandemic situation are the most significant factors that will impact our future financial condition and operating results. Other 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, including our recently filed earnings release, which has been posted to our corporate site, renaissance.com, under the Investor Relations tab in the News and Market Data section. Furthermore, the COVID-19 pandemic could magnify the impact of these factors on us. 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 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. And now I will turn the call over to Renaissance Corporation Executive Chairman Robin McGraw.

Thank you, Kelly. Good morning, everyone, and thank you for joining us today. We ordinarily begin our earnings conference call with a robust discussion of our financial highlights from the quarter, but we would be remiss not to remark on the pandemic that has quickly spread across the globe and comment on its effect on each of our stakeholders. We'll discuss our preparedness and specific response in greater detail later in the prepared remarks, but it's worth highlighting that our highest priority at this time is to support the health and well-being of our employees, our clients, and our communities while continuing to implement our growth strategy in this new operating reality. Selfless efforts by our entire team at every level and across our footprint to provide essential banking services and meet the needs of our clients during these challenging times have been truly remarkable. and we commend their service and loyalty to the company and to our communities. There is no doubt the COVID-19 outbreak had a material impact on our first quarter results. Our net income for the quarter was $2 million, which represents basic and diluted earnings per share of 4 cents. Our net income included $2.2 million in after-tax expense specifically attributable to the pandemic. These expenses reduced our diluted EPS by 4 cents. Furthermore, because of the continued uncertainty remaining and because we cannot accurately predict the depth and the length of the economic impact resulting from the pandemic and the government's response to it, during the first quarter, we recorded an additional $26.4 million in provision for credit losses and added $3.4 million to our reserve for unfunded commitments. In addition to the impact of COVID-19, which includes our enhanced provision, We recorded a negative valuation adjustment to our mortgage servicing rights of $6.9 million, or in an after-tax basis, which reduced our diluted EPS by 12 cents. Looking through the impact of COVID-19 of the pandemic and these other items on our results, we had a solid first quarter, and our results reflect our team's commitment to the core operations of the bank. Our team has continued to execute on our growth strategy, while at the same time, remain prepared and focused on growing our low-cost deposits. During the first quarter, we suspended our stock repurchase plan in response to the pandemic. Prior to the suspension, we repurchased $24.5 million of our common stock at a weighted average price of $30. There is a $5.5 million of repurchase availability left under the program, which will remain in effect until the earlier of October of 2020. or the repurchase of the entire amount of common stock authorized to be repurchased by the Board. We are committed to maintaining a strong capital and liquidity position, while also serving the needs of each of our stakeholders during this uncertain time. We believe our continued efforts to effectively manage the growth and profitability of our core business in light of the economic pressures we face will continue to preserve shareholder value. Now I will turn the call over to our President and Chief Executive Officer, Mitch Waycaster, to discuss in greater detail this quarter's financial results and the impact from the COVID-19 pandemic.