Q2 2025 Renasant Corp Earnings Call
Good morning and welcome to the Renaissance Corporation. 2025 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.
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please note this event is being recorded.
Speaker Change: I would now like to turn the conference over to Kelly. Hutcherson, Chief accounting officer for Renaissance court. Please go ahead.
Speaker Change: Good morning, and thank you for joining us for Renaissance corporation's, quarterly, webcast and conference, call participating. In the call today, are members of Renaissance 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.
Speaker Change: 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.rena.com at the press releases link under the news and Market data table.
We undertake no obligation and we specifically disclaim any obligation to update or revise, forward-looking statements to reflect change assumptions, the occurrence of unanticipated events or changes to Future operating results over time. In addition
Speaker Change: 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 president and chief executive officer, Kevin Chapman.
Kevin Chapman: Thank you Kelly and good morning. We appreciate you joining the call and look forward to sharing results that reflect our merger with the First Bank shares and the successes we've enjoyed. Since the 2 companies came together, we closed the transaction on April 1st and our second quarter numbers, reflect a full quarter of operations from both companies. I am proud of the results and believe they are a great reflection on the hard work of our employees and bringing the companies together while we still have systems conversion in early August, the cultural integration of our employees and customers have gone. Well, the teamwork and collaboration from employees, in all areas of both companies has put us right? Where we need to be from an overall perspective of the merger.
Kevin Chapman: We are very encouraged by these early results and we will continue to remain focused on the work of meeting the needs of our customers by successfully, integrating teams, from both the companies.
Kevin Chapman: I will now highlight a few of our second quarter Financial results.
Kevin Chapman: Adjusted earnings were approximately 66 million or 69 cents per diluted share.
Kevin Chapman: Importantly, both sides of the balance sheet, demonstrated positive growth for the company and revealed the work done to solidify employee and customer relationships.
Kevin Chapman: Loans were up 312 million or 7% from what the combined companies reported on March. 31st, likewise deposits were up 361 million or 7%. We also saw meaningful expansion in the core. Net interest margin from 3.42% to 3.58% reported margin which reflects purchase accounting adjustments Rose from 3.45% to 3.85% for the quarter.
Kevin Chapman: Our adjusted total cost of deposits decreased 18 basis points to 2.04%. While our adjusted loan yields decreased only 1 basis, point to 6.18%
Kevin Chapman: As you can see, our earnings trajectory and balance sheet are evident in the second quarter results. We are well, positioned for the second half of the year and are on track to realize the benefits of the combination.
Kevin Chapman: I will now turn the call over to Jim.
Jim: Thank you. Kevin the merger creates an exciting but noisy quarter.
Jim: I'll begin with highlights from the merger, the fair value of assets acquired totaled 7.9 billion.
Jim: And included, total loans of 5.2 billion.
The fair value of liabilities assumed total 6.9 billion.
Jim: And included total deposits of 6.4 billion.
Jim: Core deposit intangibles told 159.6 million and preliminary Goodwill arising from the transaction. Total 428.7 million.
Jim: From a capital standpoint, all regulatory Capital ratios remain in excess of required minimums to be considered. Well, capitalized.
Turning to asset quality, we experienced improvement in our past due loan percentage and non-performing, Loans were flat.
Jim: There was an uptick in classified loans that was largely driven by layering in the portfolio from the first and not due to deterioration.
Jim: Excluding day 1, Provisions, we record a credit loss. Provision on loans of 14.7 million.
Jim: Comprised of 13.2 million for funded loans and 1.5 million for unfunded commitments.
Jim: net charge offs were 12.1 million, largely comprised of 2 credits and the ACL as a percentage of total loans, increased 1 basis point quarter of a quarter to 1.57%
Jim: turning to the income statement are adjusted pre-provision. Net revenue was 103 million.
Jim: Interesting. Come growth was driven by Improvement in the netis margin and balance sheet growth.
Jim: Non-interest income was 48.3 million and the second quarter, a link quarter, increase of 11.9 million.
9.7 million of this increase was attributable to the first while our mortgage division drove much of the remaining increase.
Jim: Mortgage experienced a solid quarter. In terms of volume resulting, in an increase in income of 1.6 million from the first quarter, after excluding a gain on sale of MSR assets,
Jim: Non-interest expense was 183.2 Million for the second quarter. Excluding merger and conversion expenses of 20.5 million non-interest expense was 162.7 Million for the quarter.
Jim: With systems conversion, a couple of weeks away. We expect to see additional conversion related expenses in the third quarter.
Jim: We remain on track to achieve model synergies by year end.
Jim: The Improvement, net revenue coupled with Cost Containment from the combined companies resulted in an improvement in our adjusted, efficiency ratio of about 7 percentage points.
Jim: We are encouraged by the results of the second quarter and the momentum for the remainder of 2025.
Kevin Chapman: I will now turn the call back over to Kevin.
Speaker Change: Thank you, Jim. We began the process of this merger over a year ago. There has been a tremendous effort by employees from both companies to create the New higher-performing Renaissance.
Speaker Change: We are excited about capitalizing on the opportunities ahead of us and delivering strong financial performance to our shareholders.
Speaker Change: I'll now turn the call back over to the operator for questions.
Speaker Change: Thank you. We will now begin the question and answer session to ask a question. You may press star then 1 on your touchtone phone,
Speaker Change: if at any time your question has been addressed and you like to withdraw your question, please press star then 2
Speaker Change: Our first question will come from Michael rose with Raymond James, please go ahead.
Michael Rose: Hey, good morning everyone. Uh, thanks for taking my question. Just have a
A couple for you, um, just, uh, Jim may, maybe if we can just kind of, you know, kind of walk through the, the margin. I think that the total amount of of accretion is, is higher than the core margin was was obviously up. Um, can you just give us some color on, kind of expect. I know there's a lot of moving Parts still. Um, including a a full, you know, another quarter of, uh, the combination. But how how, what, what are the puts and takes for the kind of the core, you know, margin as we kind of think about the the combination as we move forward. And then what should we think about in terms of the scheduled accretion for the next couple quarters? Thanks.
Speaker Change: Good morning, Michael. Thanks for the question. So a couple of things. Uh, are we focused on core? Um,
Speaker Change: And um, I'll certainly touch on the, on the, um, purchase accounting. Um uh, influence on overall margin. But I would say in core our Outlook, uh, uh, includes 2 rate Cuts, uh, lighter this year, I think, September and December. And, and so we've got that in there. But I would say they have a Dominus impact on on, you know, our guidance or expectations from from margin.
A, a core margin, I would say, in terms of the core looking forward and certainly in Q3 and maybe to a lesser extent. In Q4, we do see room for some modest expansion in that core margin. Uh, so we were at 3:58, uh, as you know, uh, for Q2
Speaker Change: um I I'm cautious to use a spot margin number but I would say I would I would offer this our spot margin in June was 360 so that'll give you a sense of of of, you know, uh some upside there although uh again cautionary note there, you know month monthly margins are can be a little misleading but
so I'd say that in the core, uh some modest expansion expected here in the near term, in terms of the the accretion
Speaker Change: And, you know, think about in 2 buckets, you know, interest and um, credit and and of course interest, we we view that over time as uh, that that that accretion coming into core. So that that that'll that'll transition from um, you know, um, purchase accounting and the in the core them over time. And I think that you know, for the quarter of the the credit um or excuse me, the interest accretion was about just a little shot of 10 million dollars.
Speaker Change: And I would say for both interest and credit in terms of trying to predict um how that will come to an income statement in future quarters.
Speaker Change: On on the normal part of that I would say you can use Q2 as a pretty good proxy for what Q3 and 4 will look like as it relates to the accelerated pieces of of that accretion. Um you know that's just a really tough thing to uh to project. So um stop there and happy to elaborate if it's if it's helpful.
Yes, obviously, you had some, uh, purchase time, deposit amortization, and, and long-term borrowing amortization this quarter. But if I just take the kind of the, the the the the the 7 point 17.8 million is that what you're talking about should be, you know, kind of in the ballpark for the next couple quarters.
Speaker Change: yeah, I would say so we had
Speaker Change: So, we had, yeah, we had roughly the way. I like, we had roughly 16 million dollars of of of, of purchase accounting, increasing in the quarter roughly, um, and maybe it's 17. If you include some other things and that the normal part of that was about 13 million plus, or minus. And I would think that's a pretty good, uh, indicator of what you're likely to see in the next, uh, quarter or 2. The Accelerated piece, which is again a little less than maybe 5 million dollars. Is just a tougher thing to to project. Michael's son, you know, trying to predict. That is a is a is a tough thing to do.
Speaker Change: Totally got it. Just wanted to understand some of the pieces. Okay. Perfect. And then maybe just as a as a follow-up. Um, just as we think about the, the loan growth of the combined company, obviously, you know, pretty solid again, this quarter, can you just touch on on pipelines hiring efforts? And, you know, some of the, um,
Speaker Change: Uh, you know, the benefits, uh, you know, as we think about the combined company, larger balance sheet, Etc. Um, it's, you know, from a growth perspective as we move forward, thanks.
Speaker Change: Companies did, uh, in Q4, you saw balance sheet growth, both loans and deposits in that 6 to 7% range. Uh, and and I, I know we all know this but it was on the backdrop of probably 1 of the most disruptive times in the company. Uh, so commend the efforts of everybody throughout the company to, to, to, to integrate plan for a conversion and also continue to grow in our markets. Uh, so so we we're extremely excited for um, extremely excited. That the work that was done to just grow the balance sheet in a very disruptive time. Um, as we look at the pipeline, the pipeline's holding flat, uh if we look at at our historical pipeline, um,
If we look at our pipeline in queue, in Q2 compared to where it would have been in q1, the Renaissance Legacy pipeline's flat as well as the first. So when we, when you put both of them together, we still have a very strong Pipeline and and, and with caveat that with that the past 2 quarters. Um, both companies pipeline was up compared to Prior quarters. So, as far as opportunities, we still see it. Uh, we still see, uh, we we we firmly believe we're in some of the best markets in the country, some of the best markets in the Southeast, and I think that's reflected in the pipeline. Um,
Speaker Change: As we look out for the rest of the year, we're still guiding towards mid single digit loan and deposit growth.
Speaker Change: Um, yeah, a couple things could could weigh on that or could factor into that the payoffs? Uh, I think we've communicated in the past that, uh, that we anticipate
Speaker Change: We've anticipated payoffs, uh, to pick up throughout the course of the year. Uh, that hasn't really materialized yet. Um, but but at any point in time, depending on the shape of the yield curve, or volatility in the yield curve, that, that could accelerate. Uh, so so we we're still guiding in that mid single digit. And we've intentionally tried to get ahead of that, at the beginning of this year towards the end of last year. Having production that would keep us in that mid single digit. Um, but but would just say pipelines are good and our team is focused on capturing market share opportunities throughout throughout all of our markets. I think it's reflective in Q2
Speaker Change: Okay. Great. Thanks for taking my questions. I'll step back.
Thanks Michael.
Speaker Change: The second question comes from. Matt only with Stevens, please go ahead.
Hey, good morning. Thanks for taking the question. Uh, 1, ask more about expense levels and I think the, the core expenses that you that you mentioned. Look, look really good in the second quarter. Uh, and it sounds like we should anticipate more non-core expenses in the next few quarters. As you get the uh,
Speaker Change: As you integrate. Um, but as far as the core levels and and and as you layer in the cost savings, I'm curious about the expectations for the core expense levels in the next few quarters. Um,
Speaker Change: uh, I think before we said that the first,
Speaker Change: Full quarter of fully loaded cost savings wouldn't be till first quarter of next year. Just looking for additional color if that's if that's still the case, thanks?
Speaker Change: Yeah, um, so yes, as it relates to the expense that look for the, you know, next couple of quarters, I'd say this. There's there's really no as you would expect. There's virtually. No, um, no efficiencies, uh, really reflected in Q2 from the merger and that'll start to show up in Q3. As you know, we've got our uh, conversion systems conversion slated, for early August. And so sometime, after that, we'll start to see those efficiencies, uh, show up. So I the way I would think about it is Q3 you'll see.
Speaker Change: Some, um, uh, efficiencies uh, show up in the expense line and then you'll see a little bit more show up and and Q4 and then we still believe that. Um, when we get to uh, q1, it'll our goal is to have a clean income statement that reflects all the efficiencies that we sought in the deal. The other thing I would add is, you know, you saw, we had, I think it's roughly 20 million dollars of merger expenses in Q2.
Speaker Change: Pardon me.
Speaker Change: I think you'll see about 25 million in the second half of the year. In terms of merger expenses and most of that will come in in Q3
Speaker Change: Any updates as far as your your, your longer term, strategic goals, uh, with respect to profitability, uh, Roa and efficiency.
Hey Matt, it's Kevin um, no real update. Other than to say we're tracking right in line with with what we laid out a year ago. Um, if you look at the efficiency ratio for Q, um, for Q2, um, we we are right on track. We we we've busted through the 60 percent. Um,
Speaker Change: Hurdle that that we we've talked about a long time, we're comfortable below that, um, and, and that doesn't include any of the cost savings. You have to be realized in Q3 or Q4, uh, the balance sheet growth, uh, that that we expected that's, will that will drive Revenue.
Speaker Change: Um, that that's occurring. Uh and so what we laid out was, you know,
Speaker Change: The the the combination would unlock potential on both sides of the company um and we think that's occurring. So no real no real update. Other than we are. We are right on target with where we plan to be. Uh, if you look at the balance sheet that we projected uh, in July of last year,
Speaker Change: I we we, we came in uh, really on on both sides, both Renaissance and the first came in right on top of of where we expected to be. So, um, everything is lining up the way that we want it to, and it's, it'll be our focus and our goal to, uh, to continue to work and extract incremental improvements on the goals. We laid out. But right now, we feel very comfortable about the guidance that we look.
Speaker Change: Laid out over a year ago about Roa, Roe and efficiency. Those profitability metrics that we key in.
Speaker Change: Them. Okay.
Speaker Change: Thanks taking the questions.
Thank you, Matt.
Speaker Change: The third question comes from Katherine Miller with KBW, please go ahead.
Katherine Miller: Thanks, good morning.
Speaker Change: Good morning, Katherine.
Speaker Change: Uh, just want to follow up on the margin, um, Jim, can you tell us the duration of the amortization that we'll that we'll see on the time deposit secretions.
Speaker Change: Assuming that runs off pretty quickly.
Katherine Miller: It's about 5 months, Katherine.
Okay, perfect.
Katherine Miller: And then um, this quarter, we saw a little bit of elevated. Um,
Katherine Miller: A charge off of problem loans, that was up to 2 million or so just um, can you give us a little color around what that was and then and kind of what is there run rate for that as moving forward?
Catherine Miller: No, it's the morning, Catherine.
David: Hey David, this is David.
David: Hey, good morning. Um, so on those, those 2 2 credits, those were both credits that we have. We have had identified as problem. Loans carried them as
David: As rated assets for a period of time. Um, both of them were on the cni side of the house. They were not necessarily systemic. They were um individual scenarios that that drove each 1 of those and um, happy to provide color if if needed on the individual situations. But they were 1-off, um, Credit Opportunity or credits that we needed to go ahead and and remove from the balance sheet. Uh, 1 of them, we had the charge off was almost fully impaired. The other 1 was a little bit more of a
David: A change uh from the company standpoint and we went ahead and charge that 1 off again. So those those weren't deemed to be um systemic of our cni, portfolio of our loan book. And if you look historically and we've
David: We've historically had a a couple of bumpy Quarters here there as we've removed problem assets from our balance sheet. But again it's it normally those numbers kind of revert back to. If you look at the last 12 months, I think we were um 8 to 10 basis points on average last 12 months and that number
David: some around 10 basis points is plus or minus a couple percentage kind of where we've, uh,
David: Been for the past few years and I would expect on a go forward that that number would probably be somewhere in that that ballpark, um, you know, maybe just a a tad higher. Just based on the economic environment we're in, but somewhere plus or minus 10 10 basis points maybe no higher than 15 basis points.
Speaker Change: Okay, great and maybe 1 more, if I could on just the buyback activity um just kind of curious now that you've got the deal closed and um you know, marks are set and you've still got a high levels of capital and certainly at your high levels, higher levels of roce, you're creating Capital pretty quickly. Just curious how you kind of balance thoughts on on potential BuyBacks
Speaker Change: almost and then I would say
Certainly any bolt-on. And we've, we've talked about this from time to time, and he bolt on sort of um, you know, small Acquisitions, that that uh add to our expertise and knowledge and Specialty, Finance areas, um, factoring asset, based lending, whatever that, that's something we continue to look at. Um, I don't Envision that being significant but where we, we remain very interested in adding that what we've got there and I would say Talent too. I mean that's part of the organic growth picture but
Speaker Change: always thinking about um in addition of tax uh to the team and and and and or hope that those opportunities will will continue to to be available to us.
Speaker Change: the other thing I would add is we, we continue to look at
Um, we've we did I think 2 Legacy Renaissance restructures in the Securities portfolio.
Speaker Change: We consider that in the next and then, and then certainly buy backs are there. Um, but you can you can with the order of sort of walk through those that, uh, by bikes aren't necessarily at the top of the list, but they certainly are on the list given the way. We're going to Creek capital and lastly, in the back of our minds though, that would totally not anything in the, in the near to all, but we want to think about um, you know, uh, maintaining capital for future.
Speaker Change: Uh, Bank m&a on the road. So that's I think the way we sort of think about the pecking order in terms of uh, Capital levers.
Speaker Change: It's very helpful. Thank you.
All right, the fourth question will come from, Steven scouten with Piper Sandler. Please go ahead.
Thanks, and maybe just to follow up on some of the things you just said Jim about Capital allocation longer term. I mean, appreciating that you haven't even gotten to the court conversion on fbms yet. But
Steven Scouten: When would you guys be, you know, open to thinking about whole bank m&a? Again, if the opportunity arose um and would there be an area of focus or a size of focus? At some point, down the line, or is it again just too early to think about that?
Steven Scouten: And I'll I'll take good. I I think it's a, it's a little bit too early to, to really plan for, for anything definitive. Um, we, we have conversations uh, with with with with with with the V variety of different management teams, um, couldn't have continued those conversations even as we've been focused on the fur.
Steven Scouten: We're just re-emphasizing, I think we, you and I have had this conversation. The focus is the first, uh, this has this has the most meaningful impact for both companies both shareholders. Um, and that's for our focus is, I know there's a lot of focus on the cost stage. There's a lot of focus on conversion, we as a management team are focused on the balance sheet and the revenue that it drives. That's where our attention is. And, um,
Steven Scouten: It's on and we don't want anything in front of us. That's going to derail us or off track from from the benefits that are available to us, um, with the first. So that's that's where our focus is.
as we get past conversion, as we continue to fully and successfully integrate, uh, both companies,
Steven Scouten: Then maybe we'll we'll be a little bit more. Um, uh they maybe we'll change our position on what our Focus will be m&a. Uh but right now I would just say we are squarely focused on, um, on the largest acquisition, we've done with the most customers. The most branches, most employees that for our focus is because it has the most impact to both shareholders, uh, and honestly anything, anything that would be on our radar screen.
Steven Scouten: Wouldn't wouldn't be as positive impactful as what this opportunity is. So that that's why our focus is there. And right now, we're so close to the Finish Line. We don't want to, we don't want to do anything that would self-inflict, uh, you know, an error or or anything that would cause us tracks uh, from from this opportunity. So that's where we're focused right now that that'll change over time right now. We're focused on wrapping up the successful conversion and successful integration of the first
Speaker Change: Yeah, that makes a lot of sense. Appreciate that color. And then on the, um,
Speaker Change: Remaining Securities from the first and I think you guys sold about a little less than half of their book. Was that kind of always
Speaker Change: The the the plan for that Securities book or the end up changing the path to any degree in terms of what you what you sold and what you kept and and you know could that is that still in the cards potentially to evaluate moving forward.
Speaker Change: We as you say, we sold roughly 50% of the Securities uh, at the first and and our team had, I think pretty early on uh done a lot did do a lot of work early on and that number may have moved around a little bit over time, but frankly not very much. And so what we ended up, um, selling and executing on was, was sort of a plan, um, for a while and I I don't, I don't see you never, you know, never preclude anything. But I I think if there's additional work to do in the Securities portfolio it would of course it's really all all Renaissance. That's the way I sort of think about it. But any addition, any future in terms of repositioning, I would likely be on the I see Renaissance side.
Speaker Change: Perfect. And and then, just last thing for me, I know you guys give give give a lot of good credit color and it sounds like some of the maybe noise, this quarter was just kind of deal related and nothing to to be overly worried about moving forward. But the, the provision was still, obviously a bit higher than it has been X. Even the, the kind of 1 time accounting noise. So was that, is that more about just how the model worked with the combined balance sheet and keeping the loan losses are percentage. You know, relatively flat is that the way we should think about it. The the reserve percentage kind of staying in the you know mid 150s range or or what were the other Dynamics and kind of led to that um you know, I guess the was about 14.
Speaker Change: 7 million in kind of
If you want to call it like core provision, if you will.
Speaker Change: Hey Stephen, this is David. So there's as you know, there's you point, there's a lot of noise in that ceiling number this,
Speaker Change: As we noted the um pd9 PCD marks is related to the first. If we remove those from the conversation, the other part of the
Speaker Change: um,
Speaker Change: provision in Q2 was largely related just to how our model works, as you pointed out.
Speaker Change: Particularly with the um couple of losses uh that we had for the quarter that was charged off, that just impacted our, our factors. And obviously a couple of factors that that of our model, um in particular for those 2
Speaker Change: Drug historical loss within those reflective with those respective books. The particularly, the cni and occupied CRA and that historical loss ratio was modified Q2 relative to those loans and so that just called them a change in our model.
Speaker Change: There was a relook as we every quarter in our Q factors. Uh and had a had a reflection on our reserves, in our model that wasn't necessary, specifically to those 2 credits. That is something we do consistently on on a quarterly basis. And then the third attribute, I would just say our our loan growth obviously the level of loan growth on the quarter would have had a material impact on our our model as well from a provisioning standpoint. So all 3 of those uh but it was it was a model driven. Um
Speaker Change: Signs that drove the, the increase in in provision, for the, for the quarter.
That's great. That's extremely helpful. Thank you guys for all the time this morning, appreciate it.
Thank you, Stephen.
That's bizarre.
Speaker Change: What the?
Speaker Change: Do we still have anybody in the queue?
Speaker Change: Are you ready for the next question?
Speaker Change: And we are ready for the next question. Yes. The next question comes from David Bishop at Huffy group.
Your your sensitivity looks like, post merger.
Speaker Change: Sure, good morning. Dave. So as you probably recall, the the first really complemented our balance sheet and that it would start our Deputy position, uh, a little bit. So, you know, if you look at this rate cuts
Speaker Change: of course, they, they correlate in the but they really had
Speaker Change: Uh, virtually no impact in the margin guidance that we would give. Um, now full year, probably a little deeper, but I can, I can do this that without the first. Um, it would have been, it would have been a little bit different story. So they the first definitely benefits are since 70 position and that, we're a little less sensitive.
Speaker Change: uh, so that that sort of came across as we or what happened as, as we thought, in terms of merging the, the balance sheet together
Speaker Change: Got it and then uh you know, Kevin Jim just curious, you talked about the the opportunities on the expense side of equation. Are there any opportunities on the 16th of the house? That really haven't been tapped? Yet that aren't of the numbers yet that, uh, has you pretty excited as you look forward?
Speaker Change: Yeah, Dave, I think there's a couple, um, and and I think you're seeing start to build in the numbers 1. I know we've had to apologize for being in the mortgage business for the last couple of years, but mortgage had a nice Rebound in Q2. Uh, and and I think, actually we we were, we were contrary to maybe what maybe what was happening nationally to some of the data coming in the Mortgage Bankers, and, um, you know, the opportunity we have and the new footprint with the first. There's a lot of inbound migration. There's a lot of rooftops that will only help and assist mortgage, um, on the tree management side. Um, you know, we talked about a conversion this in 10 Days of our system, we've been slowly converting, um, our traffic Management Solutions, um, and and, and to, and to the first. And so that's been that's been ongoing. Um and um and so we think that has potential upside in the future relation to income that can be done off that and then also other things like Capital markets and things that we've done with management.
Uh,
Speaker Change: The, the the real desk that we operate now. So these numbers are in in some cases 2 to the 2 of those numbers may be buried in other non-interest income.
Speaker Change: Uh, they're they're growing at a fairly appreciable rate and there's been there's been really good adoption really good interest.
Speaker Change: Uh, from from from our team members at the first, about those products, what they call for, um, how will differentiate them in the market. Uh, and so, so, I think there's several opportunities in that not interest income line on them, um, that, that that are bright spots and, and should help, you know, should help Drive additional incremental Revenue, um, as as, as as we continue to fully integrate. Um, but there is opportunity that at the top top line of the new net interest income, uh, with with some of the secured business lines or business lines. That we, that we provide lending lines that we provide, that may be the first, uh, didn't have yet. Abl factoring equipment, leasing a larger loan limit. Some of our, some of our expertise and specific real estate or middle market cni. We've seen early wins early successes in the first quarter, uh, in all those business lines of partnering up cleaning up, uh, with with with
Speaker Change: Bankers from the first, as well as, um, some of our, um,
Speaker Change: Limiting up with, with our with our teammates, over at the on the Renaissance side to Market opportunity that that otherwise either 1 of us wouldn't have had the opportunity to uh to win. So we're seeing seeing early successes and early wins uh just in the first quarter and excited about what what that indicate happen in the future quarters and future period.
Speaker Change: Got it. Appreciate that color.
Speaker Change: Thank you, Dave.
Hey again, sorry for the technical difficulties. If you have a question, please press star, then 1. Go wait a moment. Temporarily, in the case, someone joins,
Speaker Change: With no further questions, this will conclude our question and answer session. I would like to turn the conference back over to Kevin Chapman CEO for any closing remarks.
Kevin Chapman: What and appreciate all those that were able to join the call today uh look forward to uh to having future conversations at conferences. Come up in Q3, um,
Kevin Chapman: And uh again appreciate everybody that joined the call today, thank you.
Kevin Chapman: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect