8-K
Renasant Corp (RNST)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
January 28, 2025
Date of report (Date of earliest event reported)
RENASANT CORPORATION
(Exact name of registrant as specified in its charter)
| Mississippi | 001-13253 | 64-0676974 |
|---|---|---|
| (State or other jurisdiction<br><br>of incorporation) | (Commission<br><br>File Number) | (I.R.S. Employer<br><br>Identification No.) |
209 Troy Street, Tupelo, Mississippi 38804-4827
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (662) 680-1001
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, $5.00 par value per share | RNST | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On January 28, 2025, Renasant Corporation (“the Company”) issued a press release announcing earnings for the fourth quarter of 2024. The press release is furnished as Exhibit 99.1 to this Form 8-K.
Item 7.01. Regulation FD Disclosure
On January 28, 2025, the Company also made available presentation materials (the “Presentation”) prepared for use with its earnings conference call on January 29, 2025. The Presentation is attached hereto and incorporated herein as Exhibit 99.2.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01, including Exhibit 99.2, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.
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 into its operations (including its recently-announced proposed merger with The First Bancshares, Inc.), 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 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) concentration of deposit and credit 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, 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 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.
Item 9.01. Financial Statements and Exhibits.
(d) The following exhibits are furnished herewith:
Exhibit No. Description
99.1 Press release issued by Renasant Corporation announcing earnings for the fourth quarter of 2024
99.2 Presentation materials for Renasant Corporation Fourth Quarter 2024 Earnings Call
104 The cover page of Renasant Corporation's Form 8-K is formatted in Inline XBRL.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| RENASANT CORPORATION | ||
|---|---|---|
| Date: January 28, 2025 | By: | /s/ C. Mitchell Waycaster |
| C. Mitchell Waycaster | ||
| Chief Executive Officer |
Document
| 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 |
RENASANT CORPORATION ANNOUNCES
EARNINGS FOR THE FOURTH QUARTER OF 2024
TUPELO, MISSISSIPPI (January 28, 2025) - 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, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 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, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 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, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | ||||||||
| Return on average assets | 0.99 | % | 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 equity | 6.70 | 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 ratio | 31.43 | 18.64 | 31.88 | 31.43 | 44.00 | 26.75 | 34.11 |
Capital and Balance Sheet Ratios
| As of | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 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, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 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, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 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, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 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, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||
| Average<br>Balance | Interest<br>Income/<br>Expense | Yield/ <br> Rate | Average<br>Balance | Interest<br>Income/<br>Expense | Yield/ <br> Rate | Average<br>Balance | Interest<br>Income/<br>Expense | Yield/ <br> Rate | ||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans held for investment | $ | 12,746,941 | $ | 201,562 | 6.29 | % | $ | 12,584,104 | $ | 204,935 | 6.47 | % | $ | 12,249,429 | $ | 190,857 | 6.18 | % |
| Loans held for sale | 250,812 | 3,564 | 5.69 | % | 272,110 | 4,212 | 6.19 | % | 199,510 | 3,329 | 6.68 | % | ||||||
| Taxable securities | 1,784,167 | 9,408 | 2.11 | % | 1,794,421 | 9,212 | 2.05 | % | 2,050,175 | 9,490 | 1.85 | % | ||||||
| Tax-exempt securities(1) | 261,679 | 1,400 | 2.14 | % | 262,621 | 1,390 | 2.12 | % | 282,698 | 1,558 | 2.20 | % | ||||||
| Total securities | 2,045,846 | 10,808 | 2.11 | % | 2,057,042 | 10,602 | 2.06 | % | 2,332,873 | 11,048 | 1.89 | % | ||||||
| Interest-bearing balances with banks | 1,025,294 | 12,030 | 4.67 | % | 894,313 | 11,872 | 5.28 | % | 552,301 | 7,839 | 5.63 | % | ||||||
| Total interest-earning assets | 16,068,893 | 227,964 | 5.65 | % | 15,807,569 | 231,621 | 5.82 | % | 15,334,113 | 213,073 | 5.52 | % | ||||||
| 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 | $ | 57,605 | 3.00 | % | $ | 7,333,508 | $ | 60,326 | 3.26 | % | $ | 6,721,053 | $ | 47,783 | 2.82 | % |
| Savings deposits | 804,132 | 706 | 0.35 | % | 815,545 | 729 | 0.36 | % | 888,692 | 765 | 0.34 | % | ||||||
| Brokered deposits | 60,298 | 1,013 | 6.68 | % | 150,991 | 1,998 | 5.25 | % | 632,704 | 8,594 | 5.39 | % | ||||||
| Time deposits | 2,512,097 | 26,247 | 4.16 | % | 2,546,860 | 27,734 | 4.33 | % | 2,185,737 | 20,026 | 3.63 | % | ||||||
| Total interest-bearing deposits | 11,006,212 | 85,571 | 3.09 | % | 10,846,904 | 90,787 | 3.32 | % | 10,428,186 | 77,168 | 2.94 | % | ||||||
| Borrowed funds | 556,966 | 6,891 | 4.94 | % | 562,146 | 7,258 | 5.14 | % | 564,715 | 7,310 | 5.16 | % | ||||||
| Total interest-bearing liabilities | 11,563,178 | 92,462 | 3.18 | % | 11,409,050 | 98,045 | 3.41 | % | 10,992,901 | 84,478 | 3.05 | % | ||||||
| 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 | $ | 135,502 | 3.36 | % | $ | 133,576 | 3.36 | % | $ | 128,595 | 3.33 | % | ||||||
| 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, 2024 | December 31, 2023 | |||||||||
| Average<br>Balance | Interest<br>Income/<br>Expense | Yield/ <br> Rate | Average<br>Balance | Interest<br>Income/<br>Expense | Yield/ <br> Rate | |||||
| Interest-earning assets: | ||||||||||
| Loans held for investment | $ | 12,579,143 | $ | 801,807 | 6.37% | $ | 11,963,141 | $ | 713,897 | 5.97% |
| Loans held for sale | 224,734 | 13,614 | 6.06% | 181,253 | 11,807 | 6.51% | ||||
| Taxable securities(1) | 1,825,404 | 37,383 | 2.05% | 2,313,874 | 44,619 | 1.93% | ||||
| Tax-exempt securities | 264,615 | 5,746 | 2.17% | 332,749 | 7,634 | 2.29% | ||||
| Total securities | 2,090,019 | 43,129 | 2.06% | 2,646,623 | 52,253 | 1.97% | ||||
| Interest-bearing balances with banks | 772,274 | 39,557 | 5.12% | 568,155 | 30,375 | 5.35% | ||||
| Total interest-earning assets | 15,666,170 | 898,107 | 5.73% | 15,359,172 | 808,332 | 5.26% | ||||
| 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 | $ | 226,563 | 3.12% | $ | 6,357,753 | $ | 138,730 | 2.18% |
| Savings deposits | 829,818 | 2,894 | 0.35% | 971,522 | 3,197 | 0.33% | ||||
| Brokered deposits | 237,164 | 12,942 | 5.46% | 697,699 | 36,039 | 5.17% | ||||
| Time deposits | 2,466,906 | 104,193 | 4.22% | 1,874,224 | 54,365 | 2.90% | ||||
| Total interest-bearing deposits | 10,788,534 | 346,592 | 3.21% | 9,901,198 | 232,331 | 2.35% | ||||
| Borrowed funds | 566,332 | 28,989 | 5.12% | 910,080 | 45,661 | 5.02% | ||||
| Total interest-bearing liabilities | 11,354,866 | 375,581 | 3.31% | 10,811,278 | 277,992 | 2.57% | ||||
| 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 | $ | 522,526 | 3.34% | $ | 530,340 | 3.45% | ||||
| 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, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 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, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 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, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 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, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 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 | |||||||
| (Dollars in thousands, except per share data) | Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | |||||||||||||||
| 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 | — | ||||||||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | |||||||||||||||
| 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%.
15
rnstq42024earningsdeck_f
Fourth Quarter 2024 Earnings Call
This presentation may contain various statements about Renasant Corporation (“Renasant,” “we,” “our,” or “us”) 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 our future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. We believe 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 our control. In addition, these forward-looking statements are subject to assumptions about future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements; 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. 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 our actual results to differ materially from those in forward-looking statements include the following: (i) Renasant’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 Renasant, 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 we have 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 our proposed merger with The First Bancshares, Inc.; (ix) changes in the securities and foreign exchange markets; (x) Renasant’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 our 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 our 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 we use to make loans and otherwise fund our 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 our geographic area; (xx) geopolitical conditions, including acts or threats of terrorism, 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 our 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 Renasant’s filings with the Securities and Exchange Commission (“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. We undertake no obligation, and specifically disclaim any obligation, to update or revise our 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. Forward-Looking Statements 2
Snapshot Assets: $18.0 billion Loans: 12.9 Deposits: 14.6 Equity: 2.7 Loans and Deposits by State MS 20% AL 28% FL 7% Other 1% GA 29% TN 15% Loans MS 40% AL 16% FL 3% GA 30% TN 11% Deposits Footprint *Republic Business Credit operates on a nationwide basis. Locations in California, Illinois and Texas are not shown. Overview 3 Note: As of December 31, 2024
• Net income of $44.7 million with diluted EPS of $0.70 and adjusted EPS (non-GAAP)(1) of $0.73 • Net interest margin remained unchanged from Q3 at 3.36% • Loans increased $257.4 million, or 8.1% annualized • Deposits increased $62.9 million, which includes a $126.8 million reduction of brokered deposits • Cost of total deposits decreased 16 basis points to 2.35%; noninterest-bearing deposits represented 23.4% of total deposits • The ratio of allowance for credit losses on loans to total loans decreased 2 basis points to 1.57% on a linked quarter basis • Nonperforming loans represented 0.88% of total loans, a decrease of 6 basis points on a linked quarter basis; annualized net loan charge-offs were 0.05% of average loans Fourth Quarter Highlights 4(1) Adjusted diluted EPS is a non-GAAP financial measure. A reconciliation of GAAP to non-GAAP financial measures is included in the earnings release furnished to the SEC on the same Form 8-K as this presentation under the heading “Non-GAAP Reconciliations”.
Balance Sheet $14,077 $14,237 $14,255 $14,510 $14,573 $13 ,200 $13 ,400 $13 ,600 $13 ,800 $14 ,000 $14 ,200 $14 ,400 $14 ,600 $14 ,800 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Deposits $12,351 $12,501 $12,605 $12,628 $12,885 $12 ,000 $12 ,100 $12 ,200 $12 ,300 $12 ,400 $12 ,500 $12 ,600 $12 ,700 $12 ,800 $12 ,900 $13 ,000 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Loans $2,297 $2,322 $2,355 $2,658 $2,678 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Equity 5Note: Dollars in millions Note: In millions $17,361 $17,346 $17,510 $17,960 $18,035 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Assets
6 Core Deposit Funding Diversification Granularity • Average deposit account balance is $34 thousand; commercial and consumer deposit accounts, excluding time deposit accounts, averaged approximately $99 thousand and $14 thousand, respectively • Top 20 depositors, excluding public funds, comprise 5.6% of total deposits Customer Consumer 48% Commercial 35% Public Funds 17% Commercial Construction 17% Professional Services 10% Real Estate 14% Financial 14% Manufacturing 7% Trade 10% Health Care 5% Other Services 17% Other 6% Note: As of December 31, 2024 *Includes money market 23% 54% 6% 17% Noninterest-bearing Interest-bearing* Savings Time
7 Liquidity Position Cash and Securities to Total Assets 17.0% 16.2% 15.9% 17.8% 16.9% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Loans to Deposits 88% 88% 88% 87% 88% $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Average Interest Earning Asset Mix (4Q 2024) 79% 2% 13% 6% Loans Held for Investment Loans Held for Sale Securities Interest Bearing Balances with Banks
8 Capital 13.23% 13.39% 13.45% 14.80% 14.85% 7.87% 8.04% 8.16% 9.76% 9.84% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Equity to Assets / Tangible Common Equity Ratio (non-GAAP)* Shareholders' equity to assets Tangible common equity ratio (non-GAAP)* $40.92 $41.25 $41.77 $41.82 $42.13 $22.92 $23.32 $23.89 $26.02 $26.36 $5 $10 $15 $20 $25 $30 $35 $40 $45 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Book Value / TBV (non-GAAP)* Book Value Tangible Book Value (non-GAAP)* * Tangible Common Equity Ratio and Tangible Book Value are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is included in the earnings release furnished to the SEC on the same Form 8-K as this presentation under the heading “Non-GAAP Reconciliations”. 10.52% 10.59% 10.75% 12.88% 12.72% 14.93% 15.00% 15.15% 17.32% 17.07% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 CET1 / TRBC Common equity tier 1 capital ratio Total risk-based capital ratio Highlights • The Company has a $100.0 million stock repurchase program 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
9 Asset Quality 2.16% 2.76% 2.62% 3.02% 2.89% 2.00% 2.50% 3.00% 3.50% 4.00% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Criticized Loans/Total Loans 0.44% 0.48% 0.23% 0.14% 0.31% 0.0% 0.5% 1.0% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Loans 30-89 Days Past Due/ Total Loans 0.06% 0.01% 0.18% 0.02% 0.05% 0.0% 0.5% 1.0% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Net Charge-offs / Average Loans 1.61% 1.61% 1.59% 1.59% 1.57% 0.0% 1.0% 2.0% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Allowance/Total Loans 286% 271% 204% 168% 178% 0% 200% 400% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Allowance/Nonperforming Loans 0.46% 0.48% 0.60% 0.71% 0.68% 0.0% 0.5% 1.0% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 NPAs/Total Assets
10 Profitability Note: Dollars in millions except per share amounts. *Adjusted Diluted EPS, Adjusted Net Income, Adjusted Net Interest Income (FTE), PPNR and Adjusted PPNR are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is included in the earnings release furnished to the SEC on the same Form 8-K as this presentation under the heading “Non-GAAP Reconciliations”. $0.50 $0.70 $0.69 $1.18 $0.70 $0.76 $0.65 $0.69 $0.70 $0.73 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Diluted EPS / Adjusted Diluted EPS (non-GAAP)* Diluted EPS (GAAP) Adjusted Diluted EPS (non-GAAP)* $128.6 $125.9 $127.6 $133.6 $135.5 $127.2 $124.9 $126.8 $131.8 $134.7 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Net Interest Income (FTE) / Adjusted Net Interest Income (FTE) (non-GAAP)* Net interest income (FTE) Adjusted net interest income (FTE) (non-GAAP)* $34.4 $51.8 $51.8 $98.3 $52.4 $52.6 $48.2 $51.8 $56.2 $54.2 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 PPNR (non-GAAP)* / Adjusted PPNR (non-GAAP)* PPNR (non-GAAP)* Adjusted PPNR (non-GAAP)* $28.1 $39.4 $38.8 $72.5 $44.7 $42.9 $36.6 $38.8 $43.0 $46.5 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Net Income / Adjusted Net Income (non-GAAP)* Net Income Adjusted Net Income (non-GAAP)*
11 Profitability Ratios *Adjusted ROAA, Adjusted ROTCE, PPNR/Average Assets, Adjusted PPNR/Average Assets and Adjusted Efficiency Ratio are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is included in the earnings release furnished to the SEC on the same Form 8-K as this presentation under the heading “Non-GAAP Reconciliations”. 4.93% 6.85% 6.68% 11.29% 6.70% 13.94% 11.58% 12.04% 11.26% 11.38% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 ROAE / Adjusted ROTCE (non-GAAP)* ROAE (GAAP) ROTCE (Adjusted) (non-GAAP)* 0.65% 0.92% 0.90% 1.63% 0.99% 0.99% 0.86% 0.90% 0.97% 1.03% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 ROAA / Adjusted ROAA (non-GAAP*) ROAA (GAAP) ROAA (Adjusted) (non-GAAP)* 75% 68% 67% 55% 68% 66% 68% 67% 65% 66% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Efficiency Ratio / Adjusted Efficiency Ratio (non-GAAP)* Efficiency Ratio (GAAP) Adjusted Efficiency Ratio (non-GAAP)* 0.79% 1.21% 1.20% 2.21% 1.16%1.21% 1.13% 1.20% 1.27% 1.20% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 PPNR (non-GAAP)* / Adjusted PPNR Ratios (non- GAAP)* PPNR/Average Assets (non-GAAP)* Adjusted PPNR/Average Assets (non-GAAP)*
12 Net Interest Margin (FTE), Loan Yield and Cost of Deposits *Adjusted Net Interest Margin (FTE) and Adjusted Loan Yield are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is included in the earnings release furnished to the SEC on the same Form 8-K as this presentation under the heading “Non-GAAP Reconciliations”. 3.33% 3.30% 3.31% 3.36% 3.36% 3.29% 3.28% 3.29% 3.32% 3.34% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Net Interest Margin (FTE) / Adjusted Net Interest Margin (FTE)(non-GAAP)* Net Interest Margin Adjusted Net Interest Margin (FTE)(non-GAAP)* 6.18% 6.30% 6.41% 6.47% 6.29% 6.14% 6.27% 6.38% 6.41% 6.27% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Loan Yield / Adjusted Loan Yield (non-GAAP)* Loan yield Adjusted Loan Yield (non-GAAP)* 2.17% 2.35% 2.47% 2.51% 2.35% 2.94% 3.13% 3.28% 3.32% 3.09% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Cost of Deposits Total cost of deposits Cost of total interest-bearing deposits
Noninterest Income / Total Revenue $20.4 $41.4 $38.8 $89.3 $34.2 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Noninterest Income 81% 4% 7% 8% YTD Total Revenue(1) Community Banking Wealth Management Mortgage Insurance • Noninterest income decreased $55.1 million on a linked quarter basis primarily due to a gain on the sale of the Company's insurance agency of $53.3 million, recognized during the third quarter Note: Dollars in millions (1) Total revenue is calculated as net interest income plus noninterest income. (2) Effective July 1, 2024, Renasant sold the assets of its insurance agency. 13 (2) Service Charges 31% Fees and Commissions 12%Wealth Management 19% Mortgage Banking 20% Other 18% Mix - 4Q 2024
14 Noninterest Expense ($ in thousands) 3Q24 4Q24 Change Salaries and employee benefits 71,307$ 70,260$ (1,047)$ Data processing 4,133 4,145 12 Net occupancy and equipment 11,415 11,312 (103) Advertising and public relations 3,677 3,840 163 Merger and conversion expenses 11,273 2,076 (9,197) Other 20,178 23,114 2,936 Total 121,983$ 114,747$ (7,236)$ $111.9 $112.9 $112.0 $122.0 $114.7 4Q 2023 1Q 2024 2Q 2024 3Q 2023 4Q 2023 Salaries and employee benefits 61% Data processing 4% Net occupancy and equipment 10% Advertising and public relations 3% Merger and conversion expenses 2% Other 20% Mix - 4Q 2024 • Noninterest expense decreased $7.2 million on a linked quarter basis. Merger and conversion expenses were $2.1 million and $11.3 million for the fourth and third quarters, respectively. ($ in millions)
Appendix
16 Available Liquidity and Uninsured Deposits $9.6 $4.7 Available sources Uninsured and uncollateralized deposits Uninsured Deposits Uncollateralized 4.7$ 32.4 % Collateralized public funds 1.8 12.1 Total 6.5$ 44.5 % % of Total Deposits Internal Sources Cash and cash equivalents 1.1$ Unencumbered securities(1) 0.7 External Sources FHLB borrowing capacity(2) 4.0 Federal Reserve Discount Window 0.7 Other(3) 3.1 Total 9.6$ Liquidity Sources Note: As of December 31, 2024; dollars in billions (1) Approximately $147 million of the unencumbered securities are placed at the Fed (2) Does not include loans participated to REITs that could be moved to Renasant Bank and pledged for additional capacity (3) Includes untapped brokered CDs (per internal policy limits) and unsecured lines of credit
17 Securities Composition (at Amortized Cost) Highlights • Represents 10.9% of total assets • Duration of 4.7 years • 54% of portfolio HTM • 10.6% of HTM are CRA investments • 25.3% of HTM are Municipals • Unrealized losses in AOCI on securities totaled $203.7 million ($152.9 million, net of tax); this includes unrealized losses in AOCI on HTM securities of $65.7 million ($49.0 million, net of tax) Note: As of December 31, 2024 Agency CMO 40% Agency MBS 27% Municipal 14% Agency CMBS 10% SBA 6% Other 3% $2.1 Billion
18 Non-Owner Occupied CRE – Term* Non-Owner Occupied CRE – Term* Note: As of December 31, 2024. LTV is calculated using the most recent appraisal available. *Excludes construction 18% 10% 10% 23% 7% 8% 16% 6% 2% Warehouse/Industrial Hotels Self Storage Multi-family Medical Office Office (non-medical) Retail Senior Housing Other % of Loans 32.8% Avg Loan Size1 $2.2 million WA LTV 0.01% 0.69% 54.4% 30-89 Days NPLs2 Highlights Office (Non-Medical) Multi-Family Fair Value $325.5-- $985.0-- Avg Loan Size1 1.0-- 3.7-- % of Loans 2.5% 7.6% Past Due2 6.4 0.0 ACL Reserve3 3.5 1.2 WA LTV 56.2 52.9 Loans <75% LTV 84.8 99.5 In Footprint 99.0 99.7 Q4 Loan Growth 3.2 14.4 (1) Based on commitment amount (2) Includes non accrual loans; Ninety-three percent of Office past dues are represented by two loans (3) Includes reserves for both loans accounted for in pools and those individually evaluated Note: Dollars in millions
19 Construction Composition Note: As of December 31, 2024; LTV is calculated using the most recent appraisal available. Highlights 24% 9% 29% 7% 4% 11% 11% 2% 3% 1-4 Family Commercial Owner-Occupied Multi-family Office Retail Self Storage Warehouse / Industrial Hotels Senior Housing Average Loan Size $1.80 million % of Total Loans 8.5% Past Due or Nonaccrual 0.3-- Weighted Average LTV 60.3--
Forward-Looking Statements 20 ACL / Loss Absorption ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans Commercial, Financial, Agricultural 43,033$ 2.38 38,527$ 2.04 Lease Financing Receivables 2,384 2.43 3,368 3.72 Real Estate - 1-4 Family Mortgage 47,274 1.37 47,832 1.37 Real Estate - Commercial Mortgage 82,179 1.37 90,361 1.45 Real Estate - Construction 16,656 1.38 15,126 1.38 Installment loans to individuals 8,852 9.83 6,542 7.31 Allowance for Credit Losses on Loans 200,378 1.59 201,756 1.57 Allowance for Credit Losses on Deferred Interest 758 732 Reserve for Unfunded Commitments 15,443 14,943 Total Reserves 216,579 217,431 Purchase Accounting Discounts 5,637 5,021 Total Loss Absorption Capacity 222,216$ 222,452$ 12/31/20249/30/2024
21 Mortgage Banking Mortgage Banking Income ($ in thousands) 4Q23 3Q24 4Q24 Gain on sales of loans, net 1,860$ 4,499$ 2,379$ Fees, net 2,010 2,646 2,850 Mortgage servicing income, net 2,722 1,302 1,632 Mortgage banking income, net 6,592$ 8,447$ 6,861$ $342.5 $444.3 $560.3 $543.6 $482.3 $- $100 $200 $300 $400 $500 $600 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Locked Volume (in millions) Mix (in %) 4Q23 3Q24 4Q24 Wholesale 52 47 39 Retail 48 53 61 Purchase 87 87 89 Refinance 13 13 11 Gain on sale margin* 1.14% 1.78% 1.69% 1.56% 2.01% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 *Gain on sale margin excludes pipeline fair value adjustments and buyback reserve activity included in “Gain on sales of loans, net” in the table above
• Creates a leading Southeast bank with ~$25 billion in combined assets • Familiarity and culture mitigate risk • Strengthens demographic profile and adds density Renasant Acquisition of The First Note: Data as of June 30, 2024. Strong Strategic Partner • Granular and diverse core deposit base • Strong credit metrics • Excess liquidity Sound FBMS Fundamentals • Accelerates profitability improvement • Meaningful EPS accretion • Capital ratios well-positioned Financially Compelling Loans Deposits Combined Highlights ~$18B ~$21B Assets ~$25B (1) 22
