Q4 2024 Renasant Corp Earnings Call
Good morning, and welcome to the Resonant Corporation 2024 fourth quarter and year-end earnings conference call and webcast. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
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. 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 Dot Renaissance Dot Com at press releases link under the news and.
Market data task, 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.
Speaker Change: 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.
Mitch Waycaster: Thank you Kelly good morning, we appreciate you joining the call and your interest in the Renaissance. The fourth quarter results marked the end to a successful year for Renaissance after announcing a transformative merger in July and diligently working on the planning necessary for a successful combination.
Mitch Waycaster: Our team maintained a focus on generating loan growth disciplined pricing on both sides of the balance sheet and steady credit performance, we still anticipate completing our merger with the burst in the first half of 2025 I will now turn the call over to Kevin. Thank you Mitch.
Kevin: To Echo Rich's comments 2024 was a successful year for Renaissance and one of transformation as our team worked diligently to improve our financial performance and prepare for a successful merger with the first this work has positioned Renaissance for continued growth and success in 2025 and beyond I will now turn our attention to our fourth quarter financial.
Kevin: <unk> our earnings were $44 $7 million of 70 cents per diluted share net interest income was $135 $5 million, an increase of $1.9 million on a linked quarter basis.
Kevin: This increase was driven by solid loan growth of $257 million on a linked quarter basis bolstered by a significant decrease to our cost of deposits.
Kevin: On the liability side of the balance sheet, we have continued to see strong deposit growth, especially in interest bearing deposits, which increased by $189 million.
Kevin: Total deposits increased by $63 million, which includes 127 million dollar reduction of broker deposits. We did not hold any broker deposits by year end. This deposit growth happened, even as our total deposit costs decreased 16 basis points during Q4 compared to a four basis point increase during Q3.
Kevin: First income decreased 55 $1 million for the third quarter. The third quarter included a onetime pretax gain of $53 $3 million from the sale of our insurance agency.
Kevin: Excluding the aforementioned gain on settled instruments agency adjusted noninterest income decreased $1.7 million quarter over quarter, due primarily to seasonal declines in mortgage volume and the corresponding decline in mortgage revenue.
Kevin: Noninterest expense was $114 $7 million for the fourth quarter, a $7 million quarter over quarter decrease driven largely by a 9.2 million dollar decrease in merger and conversion expenses from Q3, excluding merger and conversion expenses noninterest expense was $112 $7 million for the quarter, representing an ink.
Kevin: Kris a $1.9 million on a linked quarter basis.
Kevin: We will work to continue to diligently manage our expenses as we work to efficiently integrate the first this year overall, we had a strong quarter as we continued to execute on our pricing expense management and continued deposit growth I will now turn the call over to Jim.
Jim: Thank you Kevin as we walk through the quarter's results I will reference slides from the earnings deck total assets grew $76 $1 million due in large part to our strong loan growth of $257.4 million, which was partially offset by a decrease in cash of $183.6 million as read.
Jim: Applauded our liquidity to among other things paying off for our remaining broker deposits on the liability side, we experienced another quarter of strong deposit growth, which allowed us to continue to shift away from noncore funding sources.
Jim: Referencing slide eight all regulatory capital ratios are in excess of required minimums to be considered well capitalized. These ratios increased meaningfully in Q3 with our capital raise and the gain on the sale of the insurance agency the ratio showed moderate declines in the fourth quarter.
Jim: Turning to asset quality, we recorded a credit loss provision on loans of $3 $1 million net charge offs were $1.7 million in the ACL as a percentage of total loans decreased two basis points quarter over quarter to 1.57%.
Jim: Asset quality metrics are presented on page nine our.
Jim: Our criticized loans and total nonperforming assets decreased for the quarter with criticized loans as a percent of total loans decreasing by 13 basis points to 2.89%.
Jim: And nonperforming assets as a percentage of total assets decreasing three basis points to 68 basis points.
Jim: Our strategy is to proactively identify underperforming loans early and work quickly towards resolution in order to mitigate loss turning to slide 12, adjusted net interest margin, which excludes purchase accounting accretion and interest recoveries increased two basis points to 3.34% for the quarter.
Jim: Adjusted loan yields decreased 14 basis points to six point to 7% and the total cost of deposits decreased by 16 basis points to 2.35%.
Speaker Change: Kevin commented on the highlights within noninterest income and expense. We are encouraged by the expense trends, we saw in the quarter and believe it positions us to build on that momentum in 2025.
Speaker Change: As a reminder, we will have considerable merger and conversion expenses and twenty-five related to the combination with the first.
Mitch Waycaster: I will now turn the call back over to Mitch.
Speaker Change: Thank you Jim we are excited about the company's prospects for this upcoming year. The first merger application is proceeding and once completed will meaningfully strengthen the balance sheet and earnings profile of Renaissance. We look forward to our teams coming together to form a top performing <unk>.
Speaker Change: Regional bank in the southeast I will now turn the call over to the operator for questions.
Speaker Change: Thank you.
Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys.
Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star and then two.
Speaker Change: At this time, we will pause for just a moment to assemble our roster.
Speaker Change: And your first question today will come from Joe <unk> with Raymond James. Please go ahead.
Joe <unk>: Good morning.
Speaker Change: Good morning, Joe.
Speaker Change: So the reported for Q NIM came in ahead of your prior outlook, which called for some modest compression.
Speaker Change: So given the current rate dropped a bit backdrop, how should we think about near term trends for the NIM.
Hi, This is Jim you're right our guidance was for some modest compression in the margin.
Speaker Change: And I would say just let's say a couple of things one are our funding base the pricing on our on our deposits behave better than we anticipated. So that was a real bright spot for us.
Speaker Change: You know, we had a higher beta there than than we anticipated knows costs came down.
Speaker Change: More than we expected so in loan yield certainly came down but held in pretty well. So I would say now our outlook.
Speaker Change: For 25, even with the two cuts is what kind of sort of flip that on its had a little bit and as opposed to modest compression. We our outlook is for some modest expansion in the margin.
Speaker Change: I appreciate that that was pretty helpful. Then.
Speaker Change: And then kind of shifting over to loan growth here. So you know it was notably stronger in the quarter.
Speaker Change: And you know given the general increase in sentiment how should we think about loan growth trends in the near term and then just to kind of follow back up on your prior answer what where new loan origination yields in the quarter.
Speaker Change: Jim you want to touch on yields that now.
Jim: Sure Joe if you if you look at if you look at new and renewed in the quarter. It was.
Speaker Change: At around 735 for the quarter.
Jim: And.
Jim: If it's helpful. Those the spot new and renewed in December was about was a little above 7% about 705.
Jim: And Joe this is mitch going going to production.
Speaker Change: We're quite pleased with our ability to price on both sides of the balance sheet, Jim just reflected on that on both but coming back to production, maybe let's start with the pipeline. We we entered the fourth quarter with a pipeline of 176 million, we enter Q1 with 174 million. So.
Speaker Change: We continue to see in the 30 day pipeline.
Speaker Change: A very strong across each geography, each business line that was reflected in production to your point and Q1. It was 572 million that was up from 507, and three Q, which yielded a net loan growth of.
Speaker Change: Little over 8% $257 million, one thing that I would note, which we've always pointed to is currently a governor on the net we did see payoffs this quarter decrease to 471 million down for 551.
Speaker Change: In relation to that 572, the AR. If you look at the average over the year, it's going to be in the Kelly M that.
Speaker Change: About $450 million range. So.
Speaker Change: Payoffs were more in line, but as we've said before the variability there does affect net but just going back to production, we had strong production and even if payoffs had remained as they were in the prior quarter. We would still had some 5.5% net growth. So just looking to the few.
Speaker Change: Sure.
Speaker Change: Each of our markets or regions or business lines continue to contribute in a meaningful way to both production and if we look at that current pipeline and then just going back to production about 14% of that was from Tennessee markets. Another 10% in Alabama, The Florida Panhandle.
Speaker Change: 28% this past quarter was in Mississippi, 15% in Georgia in Central Florida, and another 33% and our commercial corporate business lines and I would say is as we usually point to in this discussion not only the geographic distribution, but really the loan types in the <unk>.
Speaker Change: Sides credits and it gets back to the granularity the many cylinders that we continue to hit on when we look at production and we.
Speaker Change: We saw that if you take that 572 million, we saw that again this quarter with roughly 12% in the consumer he locked in one to four family, 23% and small business and business banking, which has always been strong for us across our markets. Another 34% of that came from.
Speaker Change: <unk> credit C&I, we had a very good quarter. There we continue to build that book owner occupied was good this past quarter and the rounding out the last 32% came from the corporate banking group, which was.
Speaker Change: He had found their larger C&I commercial real estate, a b L quip equipment finance factoring.
Speaker Change: So again geographically and by type by business line are continuing to perform well and all of those that's reflected in the current pipeline. We are optimistic about our Q1.
Speaker Change: That was a very thorough answer thank you very much for taking my question.
Speaker Change: Your next question today will come from Stephen Scouten with Piper Sandler. Please go ahead.
Stephen Scouten: Yeah. Thanks, Good morning, everyone. I guess, just curious about the on the pending merger and any color you can give around still expected to close later in the first half if you've had any specific updates from the the approval process and anything that can.
Stephen Scouten: I don't know kind of give confidence around that timeline.
Stephen Scouten: Sure stay then I'll I'll just go back to our prepared remarks and may be expand a touch there are you know.
Stephen Scouten: We've reflected on the fact that we announced in July since that time, both companies' teams in both companies have worked and continue to work diligently on planning the integration conversion.
Stephen Scouten: As well as completing the application and the approval process I would say regulators throughout the process have been very engaged and responsive and we are pleased with how all of those things are progressing and I would just point back relative to timing as we originally announced.
We and planned we anticipate completing the merger in the first half of this year.
Stephen Scouten: Got it appreciate the color there.
Speaker Change: And then maybe outside of you know regulators potentially getting more.
Speaker Change: I don't know a favorable around around M&A timelines do you guys think about any specific.
Speaker Change: Potential regulatory changes or improvement that that might help your bank in particular things you'd look to that could.
Speaker Change: It makes life easier if we get some additional regulatory relief.
Steve: Yeah, Hey, Steve.
Kevin: Stephen It's Kevin.
Speaker Change: So we are but where we're paying close attention to appointees nominations their pigs.
Speaker Change: There are some it appears that it's that that there's going to be changes in the regulatory environment and a lot of different ways.
Speaker Change: How that ultimately impacts a say a bank of our size or bank with our business model a lot has to be learned there.
Speaker Change: But I don't think.
Speaker Change: I think if you look at the last four years and the environment banks have been in the next four years argued arguably are going to be a lot different and against a lot of the some of the changes come in it may be it may be good it may be negative, but overall I think we're expecting that some of the regulatory changes being proposed will be net.
Speaker Change: Positive to the industry as well as positive to Renaissance.
And so I think just a lot more to stay tuned there and way too early to tell with specificity, how it will impact us, but overall, we're trying to stay close and make sure we understand that as things evolve we understand how it could impact our business model.
Speaker Change: Got it appreciate that Kevin and then just last from me I know, Jim you said, a little bit ahead of schedule in where you thought it would be from a NIM perspective, largely related to better beta is lower deposit costs in the quarter and we've seen that a lot of industry wide here. This quarter, which is great. Do you think that's more a kind of a pull forward in the lab.
Speaker Change: Jack or the maybe lag effects that we all thought we might see with deposits going gone back down with rate cuts or do you think that the.
Speaker Change: The destination actually changed and we can get to a lower point as we get through this potential easing cycle here.
Speaker Change: I think the direction changed I mean, I think there.
Speaker Change: You know you, obviously want to guard against being overly optimistic, but I think there was just a change in direction and I almost would look at them.
Speaker Change: And we'll see how it plays out over time, but you know.
Speaker Change: There are a couple of things that worked really well for us in the quarter in <unk>.
And I would say, notably just to get some slope in the yield curve was was a nice thing to say I mean, I think we were modestly inverted when we had our Q3 call and to see that change and of course trying to predict that said, that's a difficult task, but I.
Speaker Change: I mean, I think where is it.
Speaker Change: It's not going to be I would certainly not advertising a sea change in our margin, but I do think that the outlook. There is very encouraging and we'll see how it plays out but very hopeful there.
Speaker Change: Got it very helpful. Thank you guys for all the color and congrats on a great quarter.
Speaker Change: Your next question today will come from will Jones with K B W. Please go ahead.
Will Jones: Yeah, Hey, thanks, good morning, guys.
Speaker Change: Good morning will.
Speaker Change: I wanted to I wanted to start with expenses this quarter that the narrative around expense. This year really has been very positive.
Speaker Change: So it's maybe a bit surprised to see just as core operating expense jump up in the fourth quarter here, especially when when the top line is hitting a low watermark for the year was there anything chunkier or kind of more one time ish in nature that that happened this quarter and.
Speaker Change: Yeah do you feel like this is kind of a good jumping off run rate as we look into the first quarter of next year.
Speaker Change: Yeah, Hey.
Speaker Change: Well as Kevin So yeah on expenses.
Speaker Change: And just specific in the quarter. We did have a couple of things that were that were little bit.
Speaker Change: There were large.
Speaker Change: And they've been somewhat persistent throughout the year.
Speaker Change: And really in two categories. One is just operational losses fraud losses regie disputes those have been elevated all year I don't think that's specific to Renaissance I think that's a bit of an industry issue, but it was abnormally high in Q4.
Speaker Change: Was up it was up in the one and a half $2 million range in Q4 compared to Q3.
Speaker Change: We don't necessarily think that's going to happen every quarter, but the trend line into and that has been up in 24 compared to 23, the other item and its in salaries and employee benefits is health and life, We're self funded plan and so.
Speaker Change: As.
Speaker Change: As we incur health expenses, we pay for that and we've had an unusually high.
Speaker Change: Hum.
Speaker Change: Unusually large expense, there, which means our claims history of.
Speaker Change: And it's just been an outlier this year year to date, our crude health and life is up $5 million compared to.
Speaker Change: We have roughly $5 million compared to 23.
Speaker Change: In Q4, it was up a million to a million three compared to Q3. So those are the kind of the two outliers that are somewhat masking that those improvements that we've been talking about in the in the expense run rate.
Speaker Change: If you look year to date.
Speaker Change: And you include those items, but you back out merger expenses, our expenses are up about 2%.
Speaker Change: So if you kind of smooth out the quarterly volatility it's up about 2%. If you back out of crude helping life were roughly flat.
Speaker Change: Year to date and so.
Speaker Change: We were not taken our off the ball as it relates to expenses. Although we have had we've had had some unusual unusual items pop up and in 'twenty four and we'll work to get those down back to historical levels, but as we look as we look out into 2025.
Speaker Change: We think that that 2% to 3% increase in expenses is a good run rate as we look out into 'twenty five.
Speaker Change: In Q1.
Speaker Change: We'll have some volatility ended it has less days, there's merit increases.
Speaker Change: That will come into play at the back half or the back end of Q1, but we think overall as we look for 2025, but 2% to 3% increase in expenses is kind of what we're guiding but again, we'll work hard to keep that number lower flat and and again continue to work on our expenses and we've done the last couple of years.
Speaker Change: Yes, Kevin that's really helpful color I appreciate the thoughtful response, there and then I don't want to underscore you guys have done a really nice job on the expense base. This year. So thank you for all that helpful color and then maybe Jim one for you just just any I know, it's a bit of a sliding scale with some of the rate volatility.
Speaker Change: But any updated thoughts on water rate mark somewhat with the first stand today.
Speaker Change: Is there any material change there in your view.
Speaker Change: I mean, it definitely has moved some well from when we announced the deal and it's it's.
Speaker Change: You know the movements had been.
Speaker Change: Obviously, as a positive or negative, but actually they sort of net out to.
Speaker Change: Roughly you know de Minimis change to the earn back but to your point. If you. If you look at the marks and you look at it.
Speaker Change: The impact of capital and the E. P S.
Speaker Change: Sort of been toggling back and forth within them within a range I would say because we look at this you know probably monthly.
Speaker Change: But at the end of the day and of course, when we get some.
We will get some regulatory clarity, we'll we'll update these numbers by the end of the day. It has it does not have a meaningful impact on earn back they sort of offset one another so we'll keep you updated but that's that's the way I would I would describe that the the merger math.
Speaker Change: Okay, that's great and then.
Speaker Change: Maybe finally for you just if you look at the first they also had a really nice quarter of growth and so it feels like you know the two combined companies are really carrying nice momentum.
Speaker Change: Into 2025 is there a way to think about what the right.
Speaker Change: Both rate is for the combined company are where you would kind of earmark.
Speaker Change: And achievable level for growth as you think about the two companies combined.
Speaker Change: Maybe I should've mentioned that earlier, just reflecting on our ability to grow organically.
Speaker Change: To your point, we're seeing the same thing in.
Speaker Change: In the first and I have no reason to believe that that won't continue this considering their markets and it if you look at everything from culture to our business models, how we complement each other.
Speaker Change: We go to market.
Speaker Change: In very similar ways, but some of the things I think as a combined company that Renaissance can bring to them that I think will be additive to customer bases. We we don't have a lot of overlap in customers I'd just say, it's really one of those better together storage when you put it together and you look at our ability to go to market.
Speaker Change: So we view that quite favorably and I think it would be in line with what I described earlier I would say also in the planning the integration and conversion naturally a lot of those conversations continue and we're quite encouraged you now think you would hear the same same thing from that team.
Speaker Change: Yeah Okay.
Speaker Change: Thanks, Thanks for the questions guys I appreciate it.
Will Jones: Thank you will.
Speaker Change: Your next question today will come from Matt Olney with Stephens. Please go ahead.
Will Jones: Okay.
Matt Olney: Thanks, Good morning, guys.
Will Jones: Good morning, Matt.
Will Jones: I think you already highlighted the new and renewed our loan yields earlier, just remind us of the of the volume of loans that will reprice. This year that variable fixed rate loans that we should we should expect over the next few quarters.
Will Jones: Variable rate book as it is about $6 billion.
Will Jones: And the vast majority of that 90 plus percent of that re prices within a month of the rate change.
Will Jones: I will say this about that variable.
Will Jones: Book is.
Will Jones: You know 75% of that is is that a rate of six 5% or less so it'll be interesting to see what the real impact is.
Will Jones:
Will Jones: Yeah to yields.
Will Jones: As we as we get that repricing, but that'll give you a sense of the of the size of the variable rate book and then.
Will Jones: And actually I can't remember the second part of your question.
Will Jones: The fixed rate book kind of similar similar question as far as repricing dynamics at a fixed rate book.
Will Jones: Yeah, sorry, so we've got you know cause.
Will Jones: Call it.
Will Jones: $600 million of fixed rate loans that reprice within.
Will Jones: Within the next 12 months and.
Will Jones: I'd say that that's probably at a blended rate of about five 5%.
Will Jones: And actually it's closer to $700 million of that reprice over the next 12 months and then we've also got a bear in mind, we've got call. It $200 million of securities that will reprice, and that's probably carrying a yield in the mid twos.
Speaker Change: Okay that is helpful and also on the credit front I think we did see classified loans tick a little bit higher in the quarter any any color behind that the uptick in classified loans.
David: Hi, Good morning, Matt. This is David It was those were loans that were transitioning within the criticized bucket. They went there was about 27 million of loans that were criticized that were Oh, a M special mentioned that.
David: That were reclassified to class I said, there were loans that we had already highlighted where there was stress on them, but we just in our normal ongoing portfolio management, we migrated those down to sub standards and not anything materially new in that criticized classified bucket.
David: Just following up on that I guess, you mean, it would imply I guess theres incremental stress on those borrowers compared to compared to maybe the last quarter. It was your incrementals dress or are you just suggesting that maybe with a with a lag in terms of how those were great internally versus what we discussed back in October.
David: It would it would be the more of the former more it would be as we continue to watch and when we look at our.
David: Without getting into detail, we looked at a sub special mentioned type asset a criticized asset we'll watch performance and if that performance that negative performance extends longer.
Speaker Change: Yeah, we will look at downgrading as it is a classification properly doing to move that from special mention to the classified so it's not.
Speaker Change: Non incremental deterioration in the portfolio, just probably loans that have stayed within that criticized bucket a little bit longer and there was a little bit of a transitory element to loans that are in special mentioned that there's some level of stress, but it but there may be a shorter term view, where they may be upgradable.
Speaker Change: Is that stress continues then we'll look at it what's the proper classification sustain OEM or does it need to move substandard.
Speaker Change: Okay, well I appreciate the color and that's all for me. Thank you.
Speaker Change: Again, if you have a question. Please press star and then one.
Speaker Change: And your next question today will come from David Bishop with Ops Group. Please go ahead.
David Bishop: Yes, good morning, staying on that last question with credit.
David Bishop: I'm curious as you know the interest rate in the economy evolves here from a credit perspective or loan segment perspective are there any changes.
David Bishop: That are forcing you are driving your change in appetite to grow any certain loan segments. Just curious if there's been any any change in the appetite for growth.
David Bishop: David Good morning.
David Bishop: We're saying short theres not we continue to watch all segments of the economy be it commercial real estate.
David Bishop: C&I to determine what the impacts are going to be and as at this point, we're not making any change we're going to remain cognizant of impacts obviously on our mark is due to the potential for changes due to administrative reason, whether it be tariffs or what whatever.
David Bishop: But we'll continue to look at the impact, but as of today, where we're staying fairly consistent with our fault around appetite as we've had for perhaps it really pretty much the past four quarters and we.
David Bishop: We're pretty positive on most elements of all of our markets in the southeast we continue to see strong performance in our marketplace in most aspects of CRA in most aspects of C&I. So we maintain a positive outlook and in our risk guidance too.
David Bishop: So our lending teams, we have a positive outlook towards most asset classes.
Speaker Change: Got it and then turning back to the balance sheet, but I thought this quarter, maybe some seasonality or.
Speaker Change: Our funding flows it leaned into casually that more looking.
Speaker Change: Looking at the first quarter, if we do see the continuing to loan growth yet is there any resumption of loan growth are you, assuming you think you're still leaving them to up liquidity a little bit here in the first quarter into the margin.
Speaker Change: I mean, you know we as you know we've sort of we have leaned into liquidity.
Speaker Change: And I would say this is what's interesting when it struck me about this quarter was it was the first quarter I think in four or five day, where we didn't have core deposit growth exceeded loan growth.
Speaker Change: And yet we still have really good.
Speaker Change: Core deposit growth quarter, I think we were roughly 5% on the core deposit side and am.
Speaker Change: We're down that we've got no.
Speaker Change: As you know no wholesale borrowings except for a very small amount of federal home loan bank.
Speaker Change: Which we're not going to.
Speaker Change: Pay up because it's got a sub 1% right on it but.
Speaker Change: I would say this as we as we look to Q1 it was looked at first half.
Speaker Change: I mean, we feel really good about our deposit engine I mean, it's just performed really well for us and we expect that to continue.
Speaker Change: And so we'll see how how loan demand plays plays out for the for the quarter the first half but.
Speaker Change: I would say you know some of that is that we're probably going to be a net purchaser of securities and in the first quarter and we haven't done that and I don't know probably a year.
Speaker Change: Or more so.
Speaker Change: I think those things sort of tell the story about about the movement from the balance sheet.
Speaker Change: Just the great work, we've done on the deposit side to give us that flexibility that if we don't have the loan growth to put it into securities.
Speaker Change: Great I appreciate the color my last question sort of staying on the deposit side.
Speaker Change: You talked about the loan maturities repricing just curious if theres any.
Speaker Change: Update in terms of deposit repricing, maybe on the CD side in the first half of the year. Thanks.
Speaker Change: Yeah on the CD side, we've got probably.
Speaker Change: In the first half roughly call it $2 billion of Cds that that.
Speaker Change: Sure and then there'll be the blended rate on that is probably low fours.
Speaker Change: And if you look at our.
Speaker Change: You know the pricing that we're getting now it's you know call it three and three quarters to 4%. So that'll give you a sense of you know.
Speaker Change: How that might impact the income statement.
Speaker Change: Appreciate the color.
Speaker Change: Thank you Dave.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Mr. Mitch Waycaster for any closing remarks.
Speaker Change: Well, thank you Nick and thank you to each of you for joining the call today, we appreciate your interest and Renaissance.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: Yeah.
Speaker Change: [music].