Renasant Corporation

and welcome to the Renaissance Corporation 2020 Second 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. To ask a question, you may press star and then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Kelly Hutchison of Renasant Corporation. Please go ahead.

Thanks, Alison. Good morning, and thank you for joining us for Renasant Corporation's 2020 Second Quarter Webcast and Conference Call. Participating in this call today are members of Renasant 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. 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 continuing 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 relief, 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 has magnified and likely will continue to 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 that we may discuss this morning may be non-GAAP financial measures. A reconciliation of the non-GAAP measures to the most comparable GAAP measures can be found in our earnings relief. And now I'll turn the call over to Renaissance Corporation Executive Chairman Robin McGraw.

Thank you, Kelly. Good morning, everyone, and thank you for joining us today. The second quarter marked our first full quarter operating during the pandemic. Later in our prepared remarks, we'll discuss in greater detail how the pandemic has affected our operations. but it's important to first highlight the unity of our team and our response to meet the needs of our clients and our communities. The selfless efforts of our entire team at every level and across our footprint to support not only our clients, but also one another as the virus spread throughout our communities has been truly remarkable. Our success this quarter is directly attributable to the countless hours of hard work and dedication of our team, and we commend their service and their loyalty to the company and our communities. There's no doubt the COVID-19 outbreak had a material impact on our second quarter results. Our net income for the quarter was $20.1 million, which represents basic and diluted earnings per share of 36 cents. Our net income included $5 million in after-tax expense, specifically attributable to the pandemic. These expenses reduced our diluted EPS by 9 cents. Furthermore, because we cannot accurately predict the depth and length of the economic impact resulting from the pandemic and the government's response thereto, during the second quarter, we recorded an additional $26.9 million in provision for credit losses and another $2.6 million to our reserve unfunded commitments. On a year-to-date basis, we have recorded $53.3 million in provision for credit losses and added $6 million to our reserve unfunded commitments. In addition to the impact of our COVID-19 related expenses and our enhanced provisions, we recorded a negative valuation adjustment to our mortgage servicing rights of $4 million on an after-tax basis, which reduced our diluted EPS by 7 cents. Excluding these items, our diluted EPS for the quarter was 52 cents. Looking through the impact of the COVID-19 pandemic and these other items in our results, We had a solid second quarter, and our results not only highlighted the diversity of our revenue streams, but also reflect our commitment to support our clients and our communities even through these turbulent times. Despite a compressed timeframe, our team designed and executed a process that allowed us to originate over $1.3 billion in loans under the Paycheck Protection Program. And through the end of last week, we have processed over 127,000 economic impact payments. We believe Renasant played an instrumental role in providing the capital and liquidity required by our existing clients in a time of great need, and we hope that we've gained the trust and respect of our new clients as a result of our hard work and diligence during the government stimulus rollouts. Our regulatory capital ratios strengthened quarter over quarter, and all exceeded the minimum requirements to be considered well capitalized. I'll remind you that we suspended our stock repurchase program during the first quarter of 2020. Although there's $5.5 million of repurchase availability under the program, we currently do not foresee a situation where the program would be restarted before its expiration in October of 2020. We're committed to maintaining a strong capital and liquidity position while also serving the needs of each of our stakeholders during these uncertain times. 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'll turn the call over to our President and Chief Executive Officer, Mitch Waycaster, to discuss in greater detail last quarter's financial results and the impact of COVID-19 pandemic. Mitch?