• Renasant Corporation Announces Earnings For the Fourth Quarter of 2024

    Source: Nasdaq GlobeNewswire / 28 Jan 2025 15:30:01   America/Chicago

    TUPELO, Miss., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Renasant Corporation (NYSE: RNST) (the “Company”) today announced earnings results for the fourth quarter of 2024.

    (Dollars in thousands, except earnings per share)Three Months Ended Twelve Months Ended
     Dec 31, 2024Sep 30, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023
    Net income and earnings per share:      
    Net income$44,747$72,455$28,124  $195,457$144,678 
    After-tax gain on sale of insurance agency — 38,951 —   38,951 — 
    After-tax loss on sale of securities (including impairments) — — (17,859)  — (17,859)
    Basic EPS 0.70 1.18 0.50   3.29 2.58 
    Diluted EPS 0.70 1.18 0.50   3.27 2.56 
    Adjusted diluted EPS (Non-GAAP)(1) 0.73 0.70 0.76   2.76 3.15 
    Impact to diluted EPS from after-tax gain on sale of insurance agency — 0.63 —   0.65 — 
    Impact to diluted EPS from after-tax loss on sale of securities (including impairments) — — —   — (0.31)
                  

    “The fourth quarter results marked the end to a successful year for Renasant. We announced a transformative merger with The First in July and, in the midst of diligently planning for a successful combination, our team maintained its focus on generating organic growth, disciplined pricing on both sides of the balance sheet and steady credit performance,” remarked C. Mitchell Waycaster, Chief Executive Officer of the Company.

    Quarterly Highlights

    Earnings

    • Net income for the fourth quarter of 2024 was $44.7 million; diluted EPS and adjusted diluted EPS (non-GAAP)(1) were $0.70 and $0.73, respectively
    • Net interest income (fully tax equivalent) for the fourth quarter of 2024 was $135.5 million, up $1.9 million on a linked quarter basis
    • For the fourth quarter of 2024, net interest margin was 3.36%, which was unchanged on a linked quarter basis
    • Cost of total deposits was 2.35% for the fourth quarter of 2024, down 16 basis points on a linked quarter basis
    • Noninterest income decreased $55.1 million on a linked quarter basis. The Company recognized a $53.3 million pre-tax gain on the insurance agency sale during the third quarter. Excluding the impact of this gain, noninterest income decreased $1.7 million from the third quarter
    • Mortgage banking income decreased $1.6 million on a linked quarter basis. The mortgage division generated $482.3 million in interest rate lock volume in the fourth quarter of 2024, down $61.3 million on a linked quarter basis. Gain on sale margin was 2.01% for the fourth quarter of 2024, up 45 basis points on a linked quarter basis
    • Noninterest expense decreased $7.2 million on a linked quarter basis. Merger and conversion expenses were $2.1 million for the fourth quarter of 2024, down from $11.3 million for the prior quarter

    Balance Sheet

    • Loans increased $257.4 million on a linked quarter basis, representing 8.1% annualized net loan growth
    • Securities increased $41.8 million on a linked quarter basis. The Company purchased $113.6 million in securities during the fourth quarter, which was offset by cash flows related to principal payments, calls and maturities of $48.5 million and a negative fair market value adjustment in the Company’s available-for-sale portfolio of $24.3 million
    • Deposits at December 31, 2024 increased $62.9 million on a linked quarter basis. Brokered deposits outstanding at September 30, 2024 of $126.8 million matured or were called during the quarter. There were no outstanding brokered deposits at December 31, 2024. Noninterest bearing deposits decreased $125.8 million on a linked quarter basis and represented 23.4% of total deposits at December 31, 2024

    Capital and Stock Repurchase Program

    • Book value per share and tangible book value per share (non-GAAP)(1) increased 0.7% and 1.3%, respectively, on a linked quarter basis
    • The Company has a $100.0 million stock repurchase program in effect through October 2025 under which the Company is authorized to repurchase outstanding shares of its common stock either in open market purchases or privately-negotiated transactions. There was no buyback activity during the fourth quarter of 2024

    Credit Quality

    • The Company recorded a provision for credit losses of $2.6 million for the fourth quarter of 2024, compared to $0.9 million for the third quarter of 2024
    • The ratio of the allowance for credit losses on loans to total loans was 1.57% at December 31, 2024, down two basis points on a linked quarter basis
    • The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 178.11% at December 31, 2024, compared to 168.07% at September 30, 2024
    • Net loan charge-offs for the fourth quarter of 2024 were $1.7 million, or 0.05% of average loans on an annualized basis
    • Nonperforming loans to total loans decreased to 0.88% at December 31, 2024 compared to 0.94% at September 30, 2024, and criticized loans (which include classified and Special Mention loans) to total loans decreased to 2.89% at December 31, 2024, compared to 3.02% at September 30, 2024

    (1) This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.

    Income Statement

    (Dollars in thousands, except per share data)Three Months Ended Twelve Months Ended
     Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023
    Interest income        
    Loans held for investment$199,240 $202,655 $198,397 $192,390 $188,535 $792,682 $704,649 
    Loans held for sale 3,564  4,212  3,530  2,308  3,329  13,614  11,807 
    Securities 10,510  10,304  10,410  10,700  10,728  41,924  50,488 
    Other 12,030  11,872  7,874  7,781  7,839  39,557  30,375 
    Total interest income 225,344  229,043  220,211  213,179  210,431  887,777  797,319 
    Interest expense        
    Deposits 85,571  90,787  87,621  82,613  77,168  346,592  232,331 
    Borrowings 6,891  7,258  7,564  7,276  7,310  28,989  45,661 
    Total interest expense 92,462  98,045  95,185  89,889  84,478  375,581  277,992 
    Net interest income 132,882  130,998  125,026  123,290  125,953  512,196  519,327 
    Provision for credit losses        
    Provision for loan losses 3,100  1,210  4,300  2,638  2,518  11,248  18,793 
    Recovery of unfunded commitments (500) (275) (1,000) (200) —  (1,975) (3,200)
    Total provision for credit losses 2,600  935  3,300  2,438  2,518  9,273  15,593 
    Net interest income after provision for credit losses 130,282  130,063  121,726  120,852  123,435  502,923  503,734 
    Noninterest income 34,218  89,299  38,762  41,381  20,356  203,660  113,075 
    Noninterest expense 114,747  121,983  111,976  112,912  111,880  461,618  439,622 
    Income before income taxes 49,753  97,379  48,512  49,321  31,911  244,965  177,187 
    Income taxes 5,006  24,924  9,666  9,912  3,787  49,508  32,509 
    Net income$44,747 $72,455 $38,846 $39,409 $28,124 $195,457 $144,678 
             
    Adjusted net income (non-GAAP)(1)$46,458 $42,960 $38,846 $36,572 $42,887 $165,066 $177,657 
    Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1)$54,177 $56,238 $51,812 $48,231 $52,614 $210,458 $233,403 
             
    Basic earnings per share$0.70 $1.18 $0.69 $0.70 $0.50 $3.29 $2.58 
    Diluted earnings per share 0.70  1.18  0.69  0.70  0.50  3.27  2.56 
    Adjusted diluted earnings per share (non-GAAP)(1) 0.73  0.70  0.69  0.65  0.76  2.76  3.15 
    Average basic shares outstanding 63,565,437  61,217,094  56,342,909  56,208,348  56,141,628  59,350,157  56,099,689 
    Average diluted shares outstanding 64,056,303  61,632,448  56,684,626  56,531,078  56,611,217  59,748,790  56,448,163 
    Cash dividends per common share$0.22 $0.22 $0.22 $0.22 $0.22 $0.88 $0.88 
                          

    (1) This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.

    Performance Ratios

     Three Months Ended Twelve Months Ended
     Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023
    Return on average assets0.99%1.63%0.90%0.92%0.65% 1.11%0.84%
    Adjusted return on average assets (non-GAAP)(1)1.03 0.97 0.90 0.86 0.99  0.94 1.03 
    Return on average tangible assets (non-GAAP)(1)1.07 1.75 0.98 1.00 0.71  1.20 0.92 
    Adjusted return on average tangible assets (non-GAAP)(1)1.11 1.05 0.98 0.93 1.08  1.02 1.12 
    Return on average equity6.70 11.29 6.68 6.85 4.93  7.92 6.50 
    Adjusted return on average equity (non-GAAP)(1)6.96 6.69 6.68 6.36 7.53  6.69 7.99 
    Return on average tangible equity (non-GAAP)(1)10.97 18.83 12.04 12.45 9.26  13.63 12.29 
    Adjusted return on average tangible equity (non-GAAP)(1)11.38 11.26 12.04 11.58 13.94  11.55 15.02 
    Efficiency ratio (fully taxable equivalent)67.61 54.73 67.31 67.52 75.11  63.57 68.33 
    Adjusted efficiency ratio (non-GAAP)(1)65.82 64.62 66.60 68.23 66.18  66.30 63.48 
    Dividend payout ratio31.43 18.64 31.88 31.43 44.00  26.75 34.11 
                    

    Capital and Balance Sheet Ratios

     As of
     Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
    Shares outstanding 63,565,690  63,564,028  56,367,924  56,304,860  56,142,207 
    Market value per share$35.75 $32.50 $30.54 $31.32 $33.68 
    Book value per share 42.13  41.82  41.77  41.25  40.92 
    Tangible book value per share (non-GAAP)(1) 26.36  26.02  23.89  23.32  22.92 
    Shareholders’ equity to assets 14.85% 14.80% 13.45% 13.39% 13.23%
    Tangible common equity ratio (non-GAAP)(1) 9.84  9.76  8.16  8.04  7.87 
    Leverage ratio 11.34  11.32  9.81  9.75  9.62 
    Common equity tier 1 capital ratio 12.72  12.88  10.75  10.59  10.52 
    Tier 1 risk-based capital ratio 13.49  13.67  11.53  11.37  11.30 
    Total risk-based capital ratio 17.07  17.32  15.15  15.00  14.93 
                    

    (1) This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.

    Noninterest Income and Noninterest Expense

    (Dollars in thousands)Three Months Ended Twelve Months Ended
     Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023
    Noninterest income        
    Service charges on deposit accounts$10,549$10,438$10,286$10,506$10,603  $41,779$39,199 
    Fees and commissions 4,181 4,116 3,944 3,949 4,130   16,190 17,901 
    Insurance commissions — — 2,758 2,716 2,583   5,474 11,102 
    Wealth management revenue 6,371 5,835 5,684 5,669 5,668   23,559 22,132 
    Mortgage banking income 6,861 8,447 9,698 11,370 6,592   36,376 32,413 
    Gain on sale of insurance agency — 53,349 — — —   53,349 — 
    Net losses on sales of securities (including impairments) — — — — (19,352)  — (41,790)
    Gain on extinguishment of debt — — — 56 620   56 620 
    BOLI income 3,317 2,858 2,701 2,691 2,589   11,567 10,463 
    Other 2,939 4,256 3,691 4,424 6,923   15,310 21,035 
    Total noninterest income$34,218$89,299$38,762$41,381$20,356  $203,660$113,075 
    Noninterest expense        
    Salaries and employee benefits$70,260$71,307$70,731$71,470$71,841  $283,768$281,768 
    Data processing 4,145 4,133 3,945 3,807 3,971   16,030 15,195 
    Net occupancy and equipment 11,312 11,415 11,844 11,389 11,653   45,960 46,471 
    Other real estate owned 590 56 105 107 306   858 267 
    Professional fees 2,686 3,189 3,195 3,348 2,854   12,418 13,671 
    Advertising and public relations 3,840 3,677 3,807 4,886 3,084   16,210 14,726 
    Intangible amortization 1,133 1,160 1,186 1,212 1,274   4,691 5,380 
    Communications 2,067 2,176 2,112 2,024 2,026   8,379 8,238 
    Merger and conversion related expenses 2,076 11,273 — — —   13,349 — 
    Other 16,638 13,597 15,051 14,669 14,871   59,955 53,906 
    Total noninterest expense$114,747$121,983$111,976$112,912$111,880  $461,618$439,622 
                      

    Mortgage Banking Income

    (Dollars in thousands)Three Months Ended Twelve Months Ended
     Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023
    Gain on sales of loans, net$2,379$4,499$5,199$4,535$1,860 $16,612$14,573
    Fees, net 2,850 2,646 2,866 1,854 2,010  10,216 9,051
    Mortgage servicing income, net 1,632 1,302 1,633 4,981 2,722  9,548 8,789
    Total mortgage banking income$6,861$8,447$9,698$11,370$6,592 $36,376$32,413
                    

    Balance Sheet

    (Dollars in thousands)As of
     Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
    Assets     
    Cash and cash equivalents$1,092,032 $1,275,620 $851,906 $844,400 $801,351 
    Securities held to maturity, at amortized cost 1,126,112  1,150,531  1,174,663  1,199,111  1,221,464 
    Securities available for sale, at fair value 831,013  764,844  749,685  764,486  923,279 
    Loans held for sale, at fair value 246,171  291,735  266,406  191,440  179,756 
    Loans held for investment 12,885,020  12,627,648  12,604,755  12,500,525  12,351,230 
    Allowance for credit losses on loans (201,756) (200,378) (199,871) (201,052) (198,578)
    Loans, net 12,683,264  12,427,270  12,404,884  12,299,473  12,152,652 
    Premises and equipment, net 279,796  280,550  280,966  282,193  283,195 
    Other real estate owned 8,673  9,136  7,366  9,142  9,622 
    Goodwill and other intangibles 1,003,003  1,004,136  1,008,062  1,009,248  1,010,460 
    Bank-owned life insurance 391,810  389,138  387,791  385,186  382,584 
    Mortgage servicing rights 72,991  71,990  72,092  71,596  91,688 
    Other assets 300,003  293,890  306,570  289,466  304,484 
    Total assets$18,034,868 $17,958,840 $17,510,391 $17,345,741 $17,360,535 
          
    Liabilities and Shareholders’ Equity     
    Liabilities     
    Deposits:     
    Noninterest-bearing$3,403,981 $3,529,801 $3,539,453 $3,516,164 $3,583,675 
    Interest-bearing 11,168,631  10,979,950  10,715,760  10,720,999  10,493,110 
    Total deposits 14,572,612  14,509,751  14,255,213  14,237,163  14,076,785 
    Short-term borrowings 108,018  108,732  232,741  108,121  307,577 
    Long-term debt 430,614  433,177  428,677  428,047  429,400 
    Other liabilities 245,306  249,102  239,059  250,060  249,390 
    Total liabilities 15,356,550  15,300,762  15,155,690  15,023,391  15,063,152 
          
    Shareholders’ equity:     
    Common stock 332,421  332,421  296,483  296,483  296,483 
    Treasury stock (97,196) (97,251) (97,534) (99,683) (105,249)
    Additional paid-in capital 1,491,847  1,488,678  1,304,782  1,303,613  1,308,281 
    Retained earnings 1,093,854  1,063,324  1,005,086  978,880  952,124 
    Accumulated other comprehensive loss (142,608) (129,094) (154,116) (156,943) (154,256)
    Total shareholders’ equity 2,678,318  2,658,078  2,354,701  2,322,350  2,297,383 
    Total liabilities and shareholders’ equity$18,034,868 $17,958,840 $17,510,391 $17,345,741 $17,360,535 
                    

    Net Interest Income and Net Interest Margin

    (Dollars in thousands)Three Months Ended
     December 31, 2024September 30, 2024December 31, 2023
     Average
    Balance    		Interest
    Income/
    Expense    		Yield/  
     Rate    		Average
    Balance    		Interest
    Income/
    Expense    		Yield/  
     Rate    		Average
    Balance    		Interest
    Income/
    Expense    		Yield/  
     Rate
    Interest-earning assets:         
    Loans held for investment$12,746,941$201,5626.29%$12,584,104$204,9356.47%$12,249,429$190,8576.18%
    Loans held for sale 250,812 3,5645.69% 272,110 4,2126.19% 199,510 3,3296.68%
    Taxable securities 1,784,167 9,4082.11% 1,794,421 9,2122.05% 2,050,175 9,4901.85%
    Tax-exempt securities(1) 261,679 1,4002.14% 262,621 1,3902.12% 282,698 1,5582.20%
    Total securities 2,045,846 10,8082.11% 2,057,042 10,6022.06% 2,332,873 11,0481.89%
    Interest-bearing balances with banks 1,025,294 12,0304.67% 894,313 11,8725.28% 552,301 7,8395.63%
    Total interest-earning assets 16,068,893 227,9645.65% 15,807,569 231,6215.82% 15,334,113 213,0735.52%
    Cash and due from banks 188,493   189,425   180,609  
    Intangible assets 1,003,551   1,004,701   1,011,130  
    Other assets 682,211   679,969   669,988  
    Total assets$17,943,148  $17,681,664  $17,195,840  
    Interest-bearing liabilities:         
    Interest-bearing demand(2)$7,629,685$57,6053.00%$7,333,508$60,3263.26%$6,721,053$47,7832.82%
    Savings deposits 804,132 7060.35% 815,545 7290.36% 888,692 7650.34%
    Brokered deposits 60,298 1,0136.68% 150,991 1,9985.25% 632,704 8,5945.39%
    Time deposits 2,512,097 26,2474.16% 2,546,860 27,7344.33% 2,185,737 20,0263.63%
    Total interest-bearing deposits 11,006,212 85,5713.09% 10,846,904 90,7873.32% 10,428,186 77,1682.94%
    Borrowed funds 556,966 6,8914.94% 562,146 7,2585.14% 564,715 7,3105.16%
    Total interest-bearing liabilities 11,563,178 92,4623.18% 11,409,050 98,0453.41% 10,992,901 84,4783.05%
    Noninterest-bearing deposits 3,502,931   3,509,266   3,703,050  
    Other liabilities 220,154   209,762   238,864  
    Shareholders’ equity 2,656,885   2,553,586   2,261,025  
    Total liabilities and shareholders’ equity$17,943,148  $17,681,664  $17,195,840  
    Net interest income/ net interest margin $135,5023.36% $133,5763.36% $128,5953.33%
    Cost of funding  2.44%  2.61%  2.28%
    Cost of total deposits  2.35%  2.51%  2.17%
                 

    (1) U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.
    (2) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

    Net Interest Income and Net Interest Margin, continued

    (Dollars in thousands)Twelve Months Ended
     December 31, 2024December 31, 2023
     Average
    Balance    		Interest
    Income/
    Expense    		Yield/  
     Rate    		Average
    Balance    		Interest
    Income/
    Expense    		Yield/  
     Rate
    Interest-earning assets:      
    Loans held for investment$12,579,143$801,8076.37%$11,963,141$713,8975.97%
    Loans held for sale 224,734 13,6146.06% 181,253 11,8076.51%
    Taxable securities(1) 1,825,404 37,3832.05% 2,313,874 44,6191.93%
    Tax-exempt securities 264,615 5,7462.17% 332,749 7,6342.29%
    Total securities 2,090,019 43,1292.06% 2,646,623 52,2531.97%
    Interest-bearing balances with banks 772,274 39,5575.12% 568,155 30,3755.35%
    Total interest-earning assets 15,666,170 898,1075.73% 15,359,172 808,3325.26%
    Cash and due from banks 188,487   187,127  
    Intangible assets 1,006,665   1,012,239  
    Other assets 691,373   673,345  
    Total assets$17,552,695  $17,231,883  
    Interest-bearing liabilities:      
    Interest-bearing demand(2)$7,254,646$226,5633.12%$6,357,753$138,7302.18%
    Savings deposits 829,818 2,8940.35% 971,522 3,1970.33%
    Brokered deposits 237,164 12,9425.46% 697,699 36,0395.17%
    Time deposits 2,466,906 104,1934.22% 1,874,224 54,3652.90%
    Total interest-bearing deposits 10,788,534 346,5923.21% 9,901,198 232,3312.35%
    Borrowed funds 566,332 28,9895.12% 910,080 45,6615.02%
    Total interest-bearing liabilities 11,354,866 375,5813.31% 10,811,278 277,9922.57%
    Noninterest-bearing deposits 3,509,958   3,979,951  
    Other liabilities 221,487   216,148  
    Shareholders’ equity 2,466,384   2,224,506  
    Total liabilities and shareholders’ equity$17,552,695  $17,231,883  
    Net interest income/ net interest margin $522,5263.34% $530,3403.45%
    Cost of funding  2.53%  1.88%
    Cost of total deposits  2.42%  1.67%

    (1) U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.
    (2) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

    Supplemental Margin Information

    (Dollars in thousands)Three Months Ended Twelve Months Ended
     Dec 31, 2024Sep 30, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023
    Earning asset mix:      
    Loans held for investment 79.33% 79.61% 79.88%  80.29% 77.89%
    Loans held for sale 1.56  1.72  1.30   1.43  1.18 
    Securities 12.73  13.01  15.21   13.34  17.23 
    Interest-bearing balances with banks 6.38  5.66  3.61   4.94  3.70 
    Total 100.00% 100.00% 100.00%  100.00% 100.00%
           
    Funding sources mix:      
    Noninterest-bearing demand 23.25% 23.52% 25.20%  23.61% 26.91%
    Interest-bearing demand(1) 50.64  49.16  45.73   48.80  42.98 
    Savings 5.34  5.47  6.05   5.58  6.57 
    Brokered deposits 0.40  1.01  4.31   1.60  4.72 
    Time deposits 16.67  17.07  14.87   16.60  12.67 
    Borrowed funds 3.70  3.77  3.84   3.81  6.15 
    Total 100.00% 100.00% 100.00%  100.00% 100.00%
           
    Net interest income collected on problem loans$151 $642 $283  $770 $219 
    Total accretion on purchased loans 616  1,089  1,117   3,402  4,166 
    Total impact on net interest income$767 $1,731 $1,400  $4,172 $4,385 
    Impact on net interest margin 0.02% 0.04% 0.04%  0.03% 0.03%
    Impact on loan yield 0.02  0.05  0.05   0.03% 0.04%

    (1) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

    Loan Portfolio

    (Dollars in thousands)As of
     Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
    Loan Portfolio:     
    Commercial, financial, agricultural$1,885,817$1,804,961$1,847,762$1,869,408$1,871,821
    Lease financing 90,591 98,159 102,996 107,474 116,020
    Real estate - construction 1,093,653 1,198,838 1,355,425 1,243,535 1,333,397
    Real estate - 1-4 family mortgages 3,488,877 3,440,038 3,435,818 3,429,286 3,439,919
    Real estate - commercial mortgages 6,236,068 5,995,152 5,766,478 5,753,230 5,486,550
    Installment loans to individuals 90,014 90,500 96,276 97,592 103,523
    Total loans$12,885,020$12,627,648$12,604,755$12,500,525$12,351,230
               

    Credit Quality and Allowance for Credit Losses on Loans

    (Dollars in thousands)As of
     Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023
    Nonperforming Assets:     
    Nonaccruing loans$110,811 $113,872 $97,795 $73,774 $68,816 
    Loans 90 days or more past due 2,464  5,351  240  451  554 
    Total nonperforming loans 113,275  119,223  98,035  74,225  69,370 
    Other real estate owned 8,673  9,136  7,366  9,142  9,622 
    Total nonperforming assets$121,948 $128,359 $105,401 $83,367 $78,992 
          
    Criticized Loans     
    Classified loans$241,708 $218,135 $191,595 $206,502 $166,893 
    Special Mention loans 130,882  163,804  138,343  138,366  99,699 
    Criticized loans(1)$372,590 $381,939 $329,938 $344,868 $266,592 
          
    Allowance for credit losses on loans$201,756 $200,378 $199,871 $201,052 $198,578 
    Net loan charge-offs$1,722 $703 $5,481 $164 $1,713 
    Annualized net loan charge-offs / average loans 0.05% 0.02% 0.18% 0.01% 0.06%
    Nonperforming loans / total loans 0.88  0.94  0.78  0.59  0.56 
    Nonperforming assets / total assets 0.68  0.71  0.60  0.48  0.46 
    Allowance for credit losses on loans / total loans 1.57  1.59  1.59  1.61  1.61 
    Allowance for credit losses on loans / nonperforming loans 178.11  168.07  203.88  270.87  286.26 
    Criticized loans / total loans 2.89  3.02  2.62  2.76  2.16 

    (1) Criticized loans include classified and Special Mention loans.

    CONFERENCE CALL INFORMATION:
    A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time (9:00 AM Central Time) on Wednesday, January 29, 2025.

    The webcast is accessible through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=8ssY2K7l. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2024 Fourth Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.

    The webcast will be archived on www.renasant.com after the call and will remain accessible for one year. A replay can be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 8623913 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 12, 2025.

    ABOUT RENASANT CORPORATION:

    Renasant Corporation is the parent of Renasant Bank, a 120-year-old financial services institution. Renasant has assets of approximately $18.0 billion and operates 186 banking, lending, mortgage and wealth management offices throughout the Southeast as well as offering factoring and asset-based lending on a nationwide basis.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

    This press release may contain, or incorporate by reference, statements about Renasant Corporation that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “projects,” “anticipates,” “intends,” “estimates,” “plans,” “potential,” “focus,” “possible,” “may increase,” “may fluctuate,” “will likely result,” and similar expressions, or future or conditional verbs such as “will,” “should,” “would” and “could,” are generally forward-looking in nature and not historical facts. Forward-looking statements include information about the Company’s future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. The Company’s management believes these forward-looking statements are reasonable, but they are all inherently subject to significant business, economic and competitive risks and uncertainties, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements, and such differences may be material. Prospective investors are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and, accordingly, investors should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

    Important factors currently known to management that could cause the Company’s actual results to differ materially from those in forward-looking statements include the following: (i) the Company’s ability to efficiently integrate acquisitions (including its recently-announced acquisition of The First Bancshares, Inc.) into its operations, retain the customers of these businesses, grow the acquired operations and realize the cost savings expected from an acquisition to the extent and in the timeframe anticipated by management (including the possibility that such cost savings will not be realized when expected, or at all, as a result of the impact of, or challenges arising from, the integration of the acquired assets and assumed liabilities into the Company, potential adverse reactions or changes to business or employee relationships, or as a result of other unexpected factors or events); (ii) potential exposure to unknown or contingent risks and liabilities the Company has acquired, or may acquire, or target for acquisition, including in connection with the proposed merger with The First Bancshares, Inc.; (iii) the effect of economic conditions and interest rates on a national, regional or international basis; (iv) timing and success of the implementation of changes in operations to achieve enhanced earnings or effect cost savings; (v) competitive pressures in the consumer finance, commercial finance, financial services, asset management, retail banking, factoring and mortgage lending and auto lending industries; (vi) the financial resources of, and products available from, competitors; (vii) changes in laws and regulations as well as changes in accounting standards; (viii) changes in policy by regulatory agencies or increased scrutiny by, and/or additional regulatory requirements of, regulatory agencies as a result of the Company’s proposed merger with The First Bancshares, Inc.; (ix) changes in the securities and foreign exchange markets; (x) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (xi) changes in the quality or composition of the Company’s loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of the Company’s investment securities portfolio; (xii) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xiii) changes in the sources and costs of the capital the Company uses to make loans and otherwise fund the Company’s operations, due to deposit outflows, changes in the mix of deposits and the cost and availability of borrowings; (xiv) general economic, market or business conditions, including the impact of inflation; (xv) changes in demand for loan and deposit products and other financial services; (xvi) concentrations of credit or deposit exposure; (xvii) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xviii) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xix) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area; (xx) geopolitical conditions, including acts or threats of terrorism or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; (xxi) the impact, extent and timing of technological changes; and (xxii) other circumstances, many of which are beyond management’s control.

    Management believes that the assumptions underlying the Company’s forward-looking statements are reasonable, but any of the assumptions could prove to be inaccurate. Investors are urged to carefully consider the risks described in the Company’s filings with the Securities and Exchange Commission (the “SEC”) from time to time, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.renasant.com and the SEC’s website at www.sec.gov. 

    The Company undertakes no obligation, and specifically disclaims any obligation, to update or revise forward-looking statements, whether as a result of new information or to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by federal securities laws.

    NON-GAAP FINANCIAL MEASURES:

    In addition to results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this press release and the presentation slides furnished to the SEC on the same Form 8-K as this release contain non-GAAP financial measures, namely, (i) adjusted loan yield, (ii) adjusted net interest income and margin, (iii) pre-provision net revenue (including on an as-adjusted basis), (iv) adjusted net income, (v) adjusted diluted earnings per share, (vi) tangible book value per share, (vii) the tangible common equity ratio, (viii) the adjusted return on average assets and on average equity and certain other performance ratios (namely, the ratio of pre-provision net revenue to average assets and the return on average tangible assets and on average tangible common equity (including each of the foregoing on an as-adjusted basis)), and (ix) the adjusted efficiency ratio.

    These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets, including related amortization, and/or certain gains or charges (such as, for the fourth quarter of 2024, merger and conversion expenses and the gain on the sale of mortgage servicing rights), with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution’s regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company’s results to information provided in other regulatory reports and the results of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below under the caption “Non-GAAP Reconciliations”.

    None of the non-GAAP financial information that the Company has included in this release or the accompanying presentation slides are intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company’s calculations may not be comparable to similarly titled measures presented by other companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.

    Non-GAAP Reconciliations

    (Dollars in thousands, except per share data)Three Months Ended Twelve Months Ended
     Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023
    Adjusted Pre-Provision Net Revenue (“PPNR”)      
    Net income (GAAP)$44,747 $72,455 $38,846 $39,409 $28,124  $195,457 $144,678 
    Income taxes 5,006  24,924  9,666  9,912  3,787   49,508  32,509 
    Provision for credit losses (including unfunded commitments) 2,600  935  3,300  2,438  2,518   9,273  15,593 
    Pre-provision net revenue (non-GAAP)$52,353 $98,314 $51,812 $51,759 $34,429  $254,238 $192,780 
    Merger and conversion expense 2,076  11,273  —  —  —   13,349  — 
    Gain on extinguishment of debt —  —  —  (56) (620)  (56) (620)
    Gain on sales of MSR (252) —  —  (3,472) (547)  (3,724) (547)
    Gain on sale of insurance agency —  (53,349) —  —  —   (53,349) — 
    Losses on sales of securities (including impairments) —  —  —  —  19,352   —  41,790 
    Adjusted pre-provision net revenue (non-GAAP)$54,177 $56,238 $51,812 $48,231 $52,614  $210,458 $233,403 
             
    Adjusted Net Income and Adjusted Tangible Net Income      
    Net income (GAAP)$44,747 $72,455 $38,846 $39,409 $28,124  $195,457 $144,678 
    Amortization of intangibles 1,133  1,160  1,186  1,212  1,274   4,691  5,380 
    Tax effect of adjustments noted above(1) (283) (296) (233) (237) (240)  (1,173) (1,012)
    Tangible net income (non-GAAP)$45,597 $73,319 $39,799 $40,384 $29,158  $198,975 $149,046 
             
    Net income (GAAP)$44,747 $72,455 $38,846 $39,409 $28,124  $195,457 $144,678 
    Merger and conversion expense 2,076  11,273  —  —  —   13,349  — 
    Gain on extinguishment of debt —  —  —  (56) (620)  (56) (620)
    Gain on sales of MSR (252) —  —  (3,472) (547)  (3,724) (547)
    Gain on sale of insurance agency —  (53,349) —  —  —   (53,349) — 
    Losses on sales of securities (including impairments) —  —  —  —  19,352   —  41,790 
    Tax effect of adjustments noted above(1) (113) 12,581  —  691  (3,422)  13,389  (7,644)
    Adjusted net income (non-GAAP)$46,458 $42,960 $38,846 $36,572 $42,887  $165,066 $177,657 
    Amortization of intangibles 1,133  1,160  1,186  1,212  1,274   4,691  5,380 
    Tax effect of adjustments noted above(1) (283) (296) (233) (237) (240)  (1,173) (1,012)
    Adjusted tangible net income (non-GAAP)$47,308 $43,824 $39,799 $37,547 $43,921  $168,584 $182,025 
    Tangible Assets and Tangible Shareholders’ Equity      
    Average shareholders’ equity (GAAP)$2,656,885 $2,553,586 $2,337,731 $2,314,281 $2,261,025  $2,466,384 $2,224,506 
    Average intangible assets (1,003,551) (1,004,701) (1,008,638) (1,009,825) (1,011,130)  (1,006,665) (1,012,239)
    Average tangible shareholders’ equity (non-GAAP)$1,653,334 $1,548,885 $1,329,093 $1,304,456 $1,249,895  $1,459,719 $1,212,267 
             
    Average assets (GAAP)$17,943,148 $17,681,664 $17,371,369 $17,203,013 $17,195,840  $17,552,695 $17,231,883 
    Average intangible assets (1,003,551) (1,004,701) (1,008,638) (1,009,825) (1,011,130)  (1,006,665) (1,012,239)
    Average tangible assets (non-GAAP)$16,939,597 $16,676,963 $16,362,731 $16,193,188 $16,184,710  $16,546,030 $16,219,644 
             
    Shareholders’ equity (GAAP)$2,678,318 $2,658,078 $2,354,701 $2,322,350 $2,297,383  $2,678,318 $2,297,383 
    Intangible assets (1,003,003) (1,004,136) (1,008,062) (1,009,248) (1,010,460)  (1,003,003) (1,010,460)
    Tangible shareholders’ equity (non-GAAP)$1,675,315 $1,653,942 $1,346,639 $1,313,102 $1,286,923  $1,675,315 $1,286,923 
             
    Total assets (GAAP)$18,034,868 $17,958,840 $17,510,391 $17,345,741 $17,360,535  $18,034,868 $17,360,535 
    Intangible assets (1,003,003) (1,004,136) (1,008,062) (1,009,248) (1,010,460)  (1,003,003) (1,010,460)
    Total tangible assets (non-GAAP)$17,031,865 $16,954,704 $16,502,329 $16,336,493 $16,350,075  $17,031,865 $16,350,075 
             
    Adjusted Performance Ratios        
    Return on average assets (GAAP) 0.99% 1.63% 0.90% 0.92% 0.65%  1.11% 0.84%
    Adjusted return on average assets (non-GAAP) 1.03  0.97  0.90  0.86  0.99   0.94  1.03 
    Return on average tangible assets (non-GAAP) 1.07  1.75  0.98  1.00  0.71   1.20  0.92 
    Pre-provision net revenue to average assets (non-GAAP) 1.16  2.21  1.20  1.21  0.79   1.45  1.12 
    Adjusted pre-provision net revenue to average assets (non-GAAP) 1.20  1.27  1.20  1.13  1.21   1.20  1.35 
    Adjusted return on average tangible assets (non-GAAP) 1.11  1.05  0.98  0.93  1.08   1.02  1.12 
    Return on average equity (GAAP) 6.70  11.29  6.68  6.85  4.93   7.92  6.50 
    Adjusted return on average equity (non-GAAP) 6.96  6.69  6.68  6.36  7.53   6.69  7.99 
    Return on average tangible equity (non-GAAP) 10.97  18.83  12.04  12.45  9.26   13.63  12.29 
    Adjusted return on average tangible equity (non-GAAP) 11.38  11.26  12.04  11.58  13.94   11.55  15.02 
             
    Adjusted Diluted Earnings Per Share      
    Average diluted shares outstanding 64,056,303  61,632,448  56,684,626  56,531,078  56,611,217   59,748,790  56,448,163 
             
    Diluted earnings per share (GAAP)$0.70 $1.18 $0.69 $0.70 $0.50  $3.27 $2.56 
    Adjusted diluted earnings per share (non-GAAP)$0.73 $0.70 $0.69 $0.65 $0.76  $2.76 $3.15 
             
    Tangible Book Value Per Share        
    Shares outstanding 63,565,690  63,564,028  56,367,924  56,304,860  56,142,207   63,565,690  56,142,207 
             
    Book value per share (GAAP)$42.13 $41.82 $41.77 $41.25 $40.92  $42.13 $40.92 
    Tangible book value per share (non-GAAP)$26.36 $26.02 $23.89 $23.32 $22.92  $26.36 $22.92 
             
    Tangible Common Equity Ratio        
    Shareholders’ equity to assets (GAAP) 14.85% 14.80% 13.45% 13.39% 13.23%  14.85% 13.23%
    Tangible common equity ratio (non-GAAP) 9.84% 9.76% 8.16% 8.04% 7.87%  9.84% 7.87%
    Adjusted Efficiency Ratio        
    Net interest income (FTE) (GAAP)$135,502 $133,576 $127,598 $125,850 $128,595  $522,526 $530,340 
             
    Total noninterest income (GAAP)$34,218 $89,299 $38,762 $41,381 $20,356  $203,660 $113,075 
    Gain on sales of MSR (252) —  —  (3,472) (547)  (3,724) (547)
    Gain on extinguishment of debt —  —  —  (56) (620)  (56) (620)
    Gain on sale of insurance agency —  (53,349) —  —  —   53,349  — 
    Losses on sales of securities (including impairments) —  —  —  —  19,352   —  41,790 
    Total adjusted noninterest income (non-GAAP)$33,966 $35,950 $38,762 $37,853 $38,541  $146,531 $153,698 
             
    Noninterest expense (GAAP)$114,747 $121,983 $111,976 $112,912 $111,880  $461,618 $439,622 
    Amortization of intangibles (1,133) (1,160) (1,186) (1,212) (1,274)  (4,691) (5,380)
    Merger and conversion expense (2,076) (11,273) —  —  —   (13,349) — 
    Total adjusted noninterest expense (non-GAAP)$111,538 $109,550 $110,790 $111,700 $110,606  $443,578 $434,242 
             
    Efficiency ratio (GAAP) 67.61% 54.73% 67.31% 67.52% 75.11%  63.57% 68.33%
    Adjusted efficiency ratio (non-GAAP) 65.82% 64.62% 66.60% 68.23% 66.18%  66.30% 63.48%
             
    Adjusted Net Interest Income and Adjusted Net Interest Margin      
    Net interest income (FTE) (GAAP)$135,502 $133,576 $127,598 $125,850 $128,595  $522,526 $530,340 
    Net interest income collected on problem loans (151) (642) 146  (123) (283)  (770) (219)
    Accretion recognized on purchased loans (616) (1,089) (897) (800) (1,117)  (3,402) (4,166)
    Adjustments to net interest income$(767)$(1,731)$(751)$(923)$(1,400) $(4,172)$(4,385)
    Adjusted net interest income (FTE) (non-GAAP)$134,735 $131,845 $126,847 $124,927 $127,195  $518,354 $525,955 
             
    Net interest margin (GAAP) 3.36% 3.36% 3.31% 3.30% 3.33%  3.34% 3.45%
    Adjusted net interest margin (non-GAAP) 3.34% 3.32% 3.29% 3.28% 3.29%  3.31% 3.42%
             
    Adjusted Loan Yield        
    Loan interest income (FTE) (GAAP)$201,562 $204,935 $200,670 $194,640 $190,857  $801,807 $713,897 
    Net interest income collected on problem loans (151) (642) 146  (123) (283)  (770) (219)
    Accretion recognized on purchased loans (616) (1,089) (897) (800) (1,117)  (3,402) (4,166)
    Adjusted loan interest income (FTE) (non-GAAP)$200,795 $203,204 $199,919 $193,717 $189,457  $797,635 $709,512 
             
    Loan yield (GAAP) 6.29% 6.47% 6.41% 6.30% 6.18%  6.37% 5.97%
    Adjusted loan yield (non-GAAP) 6.27% 6.41% 6.38% 6.27% 6.14%  6.34% 5.93%

    (1) Tax effect is calculated based on the respective legal entity’s appropriate federal and state tax rates (as applicable) for the period, and includes the estimated impact of both current and deferred tax expense. The tax effect of the discrete gain on sale of insurance agency was calculated based on an estimated tax rate of 27.0%.


    Contacts:For Media: For Financials:
     John S. Oxford James C. Mabry IV
     Senior Vice President Executive Vice President
     Chief Marketing Officer Chief Financial Officer
     (662) 680-1219 (662) 680-1281

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