• Renasant Corporation Announces Earnings for the First Quarter of 2025

    Source: Nasdaq GlobeNewswire / 22 Apr 2025 16:31:01   America/New_York

    TUPELO, Miss., April 22, 2025 (GLOBE NEWSWIRE) -- Renasant Corporation (NYSE: RNST) (the “Company”) today announced earnings results for the first quarter of 2025.

    (Dollars in thousands, except earnings per share)Three Months Ended
     Mar 31, 2025Dec 31, 2024Mar 31, 2024
    Net income and earnings per share:   
    Net income$41,518$44,747$39,409
    Basic EPS 0.65 0.70 0.70
    Diluted EPS 0.65 0.70 0.70
    Adjusted diluted EPS (Non-GAAP)(1) 0.66 0.73 0.65
           

    “Results for the quarter represent a good start to the year with solid profitability and growth in loans and deposits," remarked C. Mitchell Waycaster, Chief Executive Officer of the Company. "On April 1st, we completed the merger with The First Bancshares, Inc. and welcome their team to Renasant. Together, we are positioned to accelerate profit performance and operate in some of the country's most attractive banking markets.”

    Quarterly Highlights

    Acquisition of The First Bancshares, Inc.

    • On April 1, 2025, the Company completed its merger with The First Bancshares, Inc. (“The First”). As of the acquisition date, The First operated 116 locations throughout Louisiana, Mississippi, Alabama, Georgia and Florida and, prior to any purchase accounting adjustments, had approximately $8.0 billion in assets, which included approximately $5.4 billion in loans, and approximately $6.5 billion in deposits.

    Earnings

    • Net income for the first quarter of 2025 was $41.5 million; diluted EPS and adjusted diluted EPS (non-GAAP)(1) were $0.65 and $0.66, respectively
    • Net interest income (fully tax equivalent) for the first quarter of 2025 was $137.4 million, up $1.9 million linked quarter
    • For the first quarter of 2025, net interest margin was 3.45%, up 9 basis points linked quarter
    • Cost of total deposits was 2.22% for the first quarter of 2025, down 13 basis points linked quarter
    • Noninterest income increased $2.2 million linked quarter, driven in part by an increase in mortgage banking income and gains on the sale of SBA loans
    • Mortgage banking income increased $1.3 million linked quarter. The mortgage division generated $632.1 million in interest rate lock volume in the first quarter of 2025, up $149.8 million linked quarter. Gain on sale margin was 1.42% for the first quarter of 2025, down 59 basis points linked quarter
    • Noninterest expense decreased $0.9 million linked quarter. Merger and conversion expenses decreased $1.3 million linked quarter

    Balance Sheet

    • Loans increased $170.6 million linked quarter, representing 5.4% annualized net loan growth
    • Securities increased $146.8 million linked quarter. The Company purchased $175.7 million in securities during the first quarter, which was offset by cash flows related to principal payments, calls and maturities of $58.6 million and a positive fair market value adjustment in the Company’s available-for-sale portfolio of $29.7 million
    • Deposits at March 31, 2025 increased $199.5 million on a linked quarter basis. Noninterest bearing deposits increased $137.4 million linked quarter and represented 24.0% of total deposits at March 31, 2025

    Capital and Stock Repurchase Program

    • Book value per share and tangible book value per share (non-GAAP)(1) increased 1.6% and 2.7%, respectively, linked quarter
    • 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 first quarter of 2025

    Credit Quality

    • The Company recorded a provision for credit losses of $4.8 million for the first quarter of 2025, up $2.6 million linked quarter
    • The ratio of the allowance for credit losses on loans to total loans was 1.56% at March 31, 2025, down one basis point linked quarter
    • The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 206.55% at March 31, 2025, compared to 178.11% at December 31, 2024
    • Net loan recoveries for the first quarter of 2025 were $0.1 million
    • Nonperforming loans to total loans decreased to 0.76% at March 31, 2025 compared to 0.88% at December 31, 2024, and criticized loans (which include classified and Special Mention loans) to total loans decreased to 2.45% at March 31, 2025, compared to 2.89% at December 31, 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
     Mar 31,
    2025    		Dec 31,
    2024    		Sep 30,
    2024    		Jun 30,
    2024    		Mar 31,
    2024
    Interest income     
    Loans held for investment$196,566$199,240 $202,655 $198,397 $192,390 
    Loans held for sale 3,008 3,564  4,212  3,530  2,308 
    Securities 12,117 10,510  10,304  10,410  10,700 
    Other 8,639 12,030  11,872  7,874  7,781 
    Total interest income 220,330 225,344  229,043  220,211  213,179 
    Interest expense     
    Deposits 79,386 85,571  90,787  87,621  82,613 
    Borrowings 6,747 6,891  7,258  7,564  7,276 
    Total interest expense 86,133 92,462  98,045  95,185  89,889 
    Net interest income 134,197 132,882  130,998  125,026  123,290 
    Provision for credit losses     
    Provision for loan losses 2,050 3,100  1,210  4,300  2,638 
    Provision for (Recovery of) unfunded commitments 2,700 (500) (275) (1,000) (200)
    Total provision for credit losses 4,750 2,600  935  3,300  2,438 
    Net interest income after provision for credit losses 129,447 130,282  130,063  121,726  120,852 
    Noninterest income 36,395 34,218  89,299  38,762  41,381 
    Noninterest expense 113,876 114,747  121,983  111,976  112,912 
    Income before income taxes 51,966 49,753  97,379  48,512  49,321 
    Income taxes 10,448 5,006  24,924  9,666  9,912 
    Net income$41,518$44,747 $72,455 $38,846 $39,409 
          
    Adjusted net income (non-GAAP)(1)$42,111$46,458 $42,960 $38,846 $36,572 
    Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1)$57,507$54,177 $56,238 $51,812 $48,231 
          
    Basic earnings per share$0.65$0.70 $1.18 $0.69 $0.70 
    Diluted earnings per share 0.65 0.70  1.18  0.69  0.70 
    Adjusted diluted earnings per share (non-GAAP)(1) 0.66 0.73  0.70  0.69  0.65 
    Average basic shares outstanding 63,666,419 63,565,437  61,217,094  56,342,909  56,208,348 
    Average diluted shares outstanding 64,028,025 64,056,303  61,632,448  56,684,626  56,531,078 
    Cash dividends per common share$0.22$0.22 $0.22 $0.22 $0.22 

    (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
     Mar 31,
    2025    		Dec 31,
    2024    		Sep 30,
    2024    		Jun 30,
    2024    		Mar 31,
    2024
    Return on average assets0.94%0.99%1.63%0.90%0.92%
    Adjusted return on average assets (non-GAAP)(1)0.95 1.03 0.97 0.90 0.86 
    Return on average tangible assets (non-GAAP)(1)1.01 1.07 1.75 0.98 1.00 
    Adjusted return on average tangible assets (non-GAAP)(1)1.02 1.11 1.05 0.98 0.93 
    Return on average equity6.25 6.70 11.29 6.68 6.85 
    Adjusted return on average equity (non-GAAP)(1)6.34 6.96 6.69 6.68 6.36 
    Return on average tangible equity (non-GAAP)(1)10.16 10.97 18.83 12.04 12.45 
    Adjusted return on average tangible equity (non-GAAP)(1)10.30 11.38 11.26 12.04 11.58 
    Efficiency ratio (fully taxable equivalent)65.51 67.61 54.73 67.31 67.52 
    Adjusted efficiency ratio (non-GAAP)(1)64.43 65.82 64.62 66.60 68.23 
    Dividend payout ratio33.85 31.43 18.64 31.88 31.43 


    Capital and Balance Sheet Ratios

     As of
     Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
    Shares outstanding 63,739,467  63,565,690  63,564,028  56,367,924  56,304,860 
    Market value per share$33.93 $35.75 $32.50 $30.54 $31.32 
    Book value per share 42.79  42.13  41.82  41.77  41.25 
    Tangible book value per share (non-GAAP)(1) 27.07  26.36  26.02  23.89  23.32 
    Shareholders’ equity to assets 14.93% 14.85% 14.80% 13.45% 13.39%
    Tangible common equity ratio (non-GAAP)(1) 9.99  9.84  9.76  8.16  8.04 
    Leverage ratio 11.39  11.34  11.32  9.81  9.75 
    Common equity tier 1 capital ratio 12.59  12.73  12.88  10.75  10.59 
    Tier 1 risk-based capital ratio 13.34  13.50  13.67  11.53  11.37 
    Total risk-based capital ratio 16.88  17.08  17.32  15.15  15.00 

    (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
     Mar 31,
    2025    		Dec 31,
    2024    		Sep 30,
    2024    		Jun 30,
    2024    		Mar 31,
    2024
    Noninterest income     
    Service charges on deposit accounts$10,364$10,549$10,438$10,286$10,506 
    Fees and commissions 3,787 4,181 4,116 3,944 3,949 
    Insurance commissions — — — 2,758 2,716 
    Wealth management revenue 7,067 6,371 5,835 5,684 5,669 
    Mortgage banking income 8,147 6,861 8,447 9,698 11,370 
    Gain on sale of insurance agency — — 53,349 — — 
    Gain on extinguishment of debt — — — — 56 
    BOLI income 2,929 3,317 2,858 2,701 2,691 
    Other 4,101 2,939 4,256 3,691 4,424 
    Total noninterest income$36,395$34,218$89,299$38,762$41,381 
    Noninterest expense     
    Salaries and employee benefits$71,957$70,260$71,307$70,731$71,470 
    Data processing 4,089 4,145 4,133 3,945 3,807 
    Net occupancy and equipment 11,754 11,312 11,415 11,844 11,389 
    Other real estate owned 685 590 56 105 107 
    Professional fees 2,884 2,686 3,189 3,195 3,348 
    Advertising and public relations 4,297 3,840 3,677 3,807 4,886 
    Intangible amortization 1,080 1,133 1,160 1,186 1,212 
    Communications 2,033 2,067 2,176 2,112 2,024 
    Merger and conversion related expenses 791 2,076 11,273 — — 
    Other 14,306 16,638 13,597 15,051 14,669 
    Total noninterest expense$113,876$114,747$121,983$111,976$112,912 


    Mortgage Banking Income

    (Dollars in thousands)Three Months Ended
     Mar 31,
    2025    		Dec 31,
    2024    		Sep 30,
    2024    		Jun 30,
    2024    		Mar 31,
    2024
    Gain on sales of loans, net$4,500$2,379$4,499$5,199$4,535 
    Fees, net 2,317 2,850 2,646 2,866 1,854 
    Mortgage servicing income, net 1,330 1,632 1,302 1,633 4,981 
    Total mortgage banking income$8,147$6,861$8,447$9,698$11,370 


    Balance Sheet

    (Dollars in thousands)As of
     Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
    Assets     
    Cash and cash equivalents$1,091,339 $1,092,032 $1,275,620 $851,906 $844,400 
    Securities held to maturity, at amortized cost 1,101,901  1,126,112  1,150,531  1,174,663  1,199,111 
    Securities available for sale, at fair value 1,002,056  831,013  764,844  749,685  764,486 
    Loans held for sale, at fair value 226,003  246,171  291,735  266,406  191,440 
    Loans held for investment 13,055,593  12,885,020  12,627,648  12,604,755  12,500,525 
    Allowance for credit losses on loans (203,931) (201,756) (200,378) (199,871) (201,052)
    Loans, net 12,851,662  12,683,264  12,427,270  12,404,884  12,299,473 
    Premises and equipment, net 279,011  279,796  280,550  280,966  282,193 
    Other real estate owned 8,654  8,673  9,136  7,366  9,142 
    Goodwill and other intangibles 1,001,923  1,003,003  1,004,136  1,008,062  1,009,248 
    Bank-owned life insurance 337,502  391,810  389,138  387,791  385,186 
    Mortgage servicing rights 72,902  72,991  71,990  72,092  71,596 
    Other assets 298,428  300,003  293,890  306,570  289,466 
    Total assets$18,271,381 $18,034,868 $17,958,840 $17,510,391 $17,345,741 
          
    Liabilities and Shareholders’ Equity     
    Liabilities     
    Deposits:     
    Noninterest-bearing$3,541,375 $3,403,981 $3,529,801 $3,539,453 $3,516,164 
    Interest-bearing 11,230,720  11,168,631  10,979,950  10,715,760  10,720,999 
    Total deposits 14,772,095  14,572,612  14,509,751  14,255,213  14,237,163 
    Short-term borrowings 108,015  108,018  108,732  232,741  108,121 
    Long-term debt 433,309  430,614  433,177  428,677  428,047 
    Other liabilities 230,857  245,306  249,102  239,059  250,060 
    Total liabilities 15,544,276  15,356,550  15,300,762  15,155,690  15,023,391 
          
    Shareholders’ equity:     
    Common stock 332,421  332,421  332,421  296,483  296,483 
    Treasury stock (91,646) (97,196) (97,251) (97,534) (99,683)
    Additional paid-in capital 1,486,849  1,491,847  1,488,678  1,304,782  1,303,613 
    Retained earnings 1,121,102  1,093,854  1,063,324  1,005,086  978,880 
    Accumulated other comprehensive loss (121,621) (142,608) (129,094) (154,116) (156,943)
    Total shareholders’ equity 2,727,105  2,678,318  2,658,078  2,354,701  2,322,350 
    Total liabilities and shareholders’ equity$18,271,381 $18,034,868 $17,958,840 $17,510,391 $17,345,741 


    Net Interest Income and Net Interest Margin

    (Dollars in thousands)Three Months Ended
     March 31, 2025December 31, 2024March 31, 2024
     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$12,966,869$199,5046.24%$12,746,941$201,5626.29%$12,407,976$194,6406.30%
    Loans held for sale 200,917 3,0085.99% 250,812 3,5645.69% 155,382 2,3085.94%
    Taxable securities 1,883,535 10,9712.33% 1,784,167 9,4082.11% 1,891,817 9,5052.01%
    Tax-exempt securities(1) 259,800 1,4432.22% 261,679 1,4002.14% 270,279 1,5052.23%
    Total securities 2,143,335 12,4142.32% 2,045,846 10,8082.11% 2,162,096 11,0102.04%
    Interest-bearing balances with banks 824,743 8,6394.25% 1,025,294 12,0304.67% 570,336 7,7815.49%
    Total interest-earning assets 16,135,864 223,5655.61% 16,068,893 227,9645.65% 15,295,790 215,7395.66%
    Cash and due from banks 181,869   188,493   188,503  
    Intangible assets 1,002,511   1,003,551   1,009,825  
    Other assets 669,392   682,211   708,895  
    Total assets$17,989,636  $17,943,148  $17,203,013  
    Interest-bearing liabilities:         
    Interest-bearing demand(2)$7,835,617$54,7102.83%$7,629,685$57,6053.00%$6,955,989$52,5003.03%
    Savings deposits 813,451 7110.35% 804,132 7060.35% 860,397 7300.34%
    Brokered deposits — ——% 60,298 1,0136.68% 445,608 5,9875.39%
    Time deposits 2,474,218 23,9653.93% 2,512,097 26,2474.16% 2,319,420 23,3964.06%
    Total interest-bearing deposits 11,123,286 79,3862.89% 11,006,212 85,5713.09% 10,581,414 82,6133.13%
    Borrowed funds 556,734 6,7474.88% 556,966 6,8914.94% 562,398 7,2765.35%
    Total interest-bearing liabilities 11,680,020 86,1332.99% 11,563,178 92,4623.18% 11,143,812 89,8893.24%
    Noninterest-bearing deposits 3,408,830   3,502,931   3,518,612  
    Other liabilities 208,105   220,154   226,308  
    Shareholders’ equity 2,692,681   2,656,885   2,314,281  
    Total liabilities and shareholders’ equity$17,989,636  $17,943,148  $17,203,013  
    Net interest income/ net interest margin $137,4323.45% $135,5023.36% $125,8503.30%
    Cost of funding  2.31%  2.44%  2.46%
    Cost of total deposits  2.22%  2.35%  2.35%

    (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.


    Loan Portfolio

    (Dollars in thousands)As of
     Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
    Loan Portfolio:     
    Commercial, financial, agricultural$1,888,580$1,885,817$1,804,961$1,847,762$1,869,408 
    Lease financing 85,412 90,591 98,159 102,996 107,474 
    Real estate - construction 1,090,862 1,093,653 1,198,838 1,355,425 1,243,535 
    Real estate - 1-4 family mortgages 3,583,080 3,488,877 3,440,038 3,435,818 3,429,286 
    Real estate - commercial mortgages 6,320,120 6,236,068 5,995,152 5,766,478 5,753,230 
    Installment loans to individuals 87,539 90,014 90,500 96,276 97,592 
    Total loans$13,055,593$12,885,020$12,627,648$12,604,755$12,500,525 


    Credit Quality and Allowance for Credit Losses on Loans

    (Dollars in thousands)As of
     Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
    Nonperforming Assets:     
    Nonaccruing loans$98,638 $110,811 $113,872 $97,795 $73,774 
    Loans 90 days or more past due 95  2,464  5,351  240  451 
    Total nonperforming loans 98,733  113,275  119,223  98,035  74,225 
    Other real estate owned 8,654  8,673  9,136  7,366  9,142 
    Total nonperforming assets$107,387 $121,948 $128,359 $105,401 $83,367 
          
    Criticized Loans     
    Classified loans$224,654 $241,708 $218,135 $191,595 $206,502 
    Special Mention loans 95,778  130,882  163,804  138,343  138,366 
    Criticized loans(1)$320,432 $372,590 $381,939 $329,938 $344,868 
          
    Allowance for credit losses on loans$203,931 $201,756 $200,378 $199,871 $201,052 
    Net loan (recoveries) charge-offs$(125)$1,722 $703 $5,481 $164 
    Annualized net loan charge-offs / average loans —% 0.05% 0.02% 0.18% 0.01%
    Nonperforming loans / total loans 0.76  0.88  0.94  0.78  0.59 
    Nonperforming assets / total assets 0.59  0.68  0.71  0.60  0.48 
    Allowance for credit losses on loans / total loans 1.56  1.57  1.59  1.59  1.61 
    Allowance for credit losses on loans / nonperforming loans 206.55  178.11  168.07  203.88  270.87 
    Criticized loans / total loans 2.45  2.89  3.02  2.62  2.76 

    (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, April 23, 2025.

    The webcast is accessible through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=3wLevlin. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2025 First 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 6525571 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until May 7, 2025.

    ABOUT RENASANT CORPORATION:
    Renasant Corporation is the parent of Renasant Bank, a 121-year-old financial services institution. As of April 1, 2025, Renasant has assets of approximately $26.0 billion and operates 280 banking, lending, mortgage and wealth management offices throughout the Southeast and also offers 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-completed merger with The First Bancshares, Inc.) (“The First”) 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 its merger with The First; (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 governmental and regulatory policy, whether applicable specifically to financial institutions or impacting the United States generally (such as, for example, changes in trade policy); (ix) increased scrutiny by, and/or additional regulatory requirements of, regulatory agencies as a result of the Company’s merger with The First; (x) changes in the securities and foreign exchange markets; (xi) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (xii) 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; (xiii) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xiv) 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; (xv) general economic, market or business conditions, including the impact of inflation; (xvi) changes in demand for loan and deposit products and other financial services; (xvii) concentrations of credit or deposit exposure; (xviii) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xix) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xx) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area; (xxi) geopolitical conditions, including acts or threats of terrorism and 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; (xxii) the impact, extent and timing of technological changes; and (xxiii) 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 first quarter of 2025, merger and conversion expenses), 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
     Mar 31,
    2025    		Dec 31,
    2024    		Sep 30,
    2024    		Jun 30,
    2024    		Mar 31,
    2024
    Adjusted Pre-Provision Net Revenue (“PPNR”)   
    Net income (GAAP)$41,518 $44,747 $72,455 $38,846 $39,409 
    Income taxes 10,448  5,006  24,924  9,666  9,912 
    Provision for credit losses (including unfunded commitments) 4,750  2,600  935  3,300  2,438 
    Pre-provision net revenue (non-GAAP)$56,716 $52,353 $98,314 $51,812 $51,759 
    Merger and conversion expense 791  2,076  11,273  —  — 
    Gain on extinguishment of debt —  —  —  —  (56)
    Gain on sales of MSR —  (252) —  —  (3,472)
    Gain on sale of insurance agency —  —  (53,349) —  — 
    Adjusted pre-provision net revenue (non-GAAP)$57,507 $54,177 $56,238 $51,812 $48,231 
          
    Adjusted Net Income and Adjusted Tangible Net Income   
    Net income (GAAP)$41,518 $44,747 $72,455 $38,846 $39,409 
    Amortization of intangibles 1,080  1,133  1,160  1,186  1,212 
    Tax effect of adjustments noted above(1) (270) (283) (296) (233) (237)
    Tangible net income (non-GAAP)$42,328 $45,597 $73,319 $39,799 $40,384 
          
    Net income (GAAP)$41,518 $44,747 $72,455 $38,846 $39,409 
    Merger and conversion expense 791  2,076  11,273  —  — 
    Gain on extinguishment of debt —  —  —  —  (56)
    Gain on sales of MSR —  (252) —  —  (3,472)
    Gain on sale of insurance agency —  —  (53,349) —  — 
    Tax effect of adjustments noted above(1) (198) (113) 12,581  —  691 
    Adjusted net income (non-GAAP)$42,111 $46,458 $42,960 $38,846 $36,572 
    Amortization of intangibles 1,080  1,133  1,160  1,186  1,212 
    Tax effect of adjustments noted above(1) (270) (283) (296) (233) (237)
    Adjusted tangible net income (non-GAAP)$42,921 $47,308 $43,824 $39,799 $37,547 
    Tangible Assets and Tangible Shareholders’ Equity   
    Average shareholders’ equity (GAAP)$2,692,681 $2,656,885 $2,553,586 $2,337,731 $2,314,281 
    Average intangible assets (1,002,511) (1,003,551) (1,004,701) (1,008,638) (1,009,825)
    Average tangible shareholders’ equity (non-GAAP)$1,690,170 $1,653,334 $1,548,885 $1,329,093 $1,304,456 
          
    Average assets (GAAP)$17,989,636 $17,943,148 $17,681,664 $17,371,369 $17,203,013 
    Average intangible assets (1,002,511) (1,003,551) (1,004,701) (1,008,638) (1,009,825)
    Average tangible assets (non-GAAP)$16,987,125 $16,939,597 $16,676,963 $16,362,731 $16,193,188 
          
    Shareholders’ equity (GAAP)$2,727,105 $2,678,318 $2,658,078 $2,354,701 $2,322,350 
    Intangible assets (1,001,923) (1,003,003) (1,004,136) (1,008,062) (1,009,248)
    Tangible shareholders’ equity (non-GAAP)$1,725,182 $1,675,315 $1,653,942 $1,346,639 $1,313,102 
          
    Total assets (GAAP)$18,271,381 $18,034,868 $17,958,840 $17,510,391 $17,345,741 
    Intangible assets (1,001,923) (1,003,003) (1,004,136) (1,008,062) (1,009,248)
    Total tangible assets (non-GAAP)$17,269,458 $17,031,865 $16,954,704 $16,502,329 $16,336,493 
          
    Adjusted Performance Ratios     
    Return on average assets (GAAP) 0.94% 0.99% 1.63% 0.90% 0.92%
    Adjusted return on average assets (non-GAAP) 0.95  1.03  0.97  0.90  0.86 
    Return on average tangible assets (non-GAAP) 1.01  1.07  1.75  0.98  1.00 
    Pre-provision net revenue to average assets (non-GAAP) 1.28  1.16  2.21  1.20  1.21 
    Adjusted pre-provision net revenue to average assets (non-GAAP) 1.30  1.20  1.27  1.20  1.13 
    Adjusted return on average tangible assets (non-GAAP) 1.02  1.11  1.05  0.98  0.93 
    Return on average equity (GAAP) 6.25  6.70  11.29  6.68  6.85 
    Adjusted return on average equity (non-GAAP) 6.34  6.96  6.69  6.68  6.36 
    Return on average tangible equity (non-GAAP) 10.16  10.97  18.83  12.04  12.45 
    Adjusted return on average tangible equity (non-GAAP) 10.30  11.38  11.26  12.04  11.58 
          
    Adjusted Diluted Earnings Per Share   
    Average diluted shares outstanding 64,028,025  64,056,303  61,632,448  56,684,626  56,531,078 
          
    Diluted earnings per share (GAAP)$0.65 $0.70 $1.18 $0.69 $0.70 
    Adjusted diluted earnings per share (non-GAAP)$0.66 $0.73 $0.70 $0.69 $0.65 
          
    Tangible Book Value Per Share     
    Shares outstanding 63,739,467  63,565,690  63,564,028  56,367,924  56,304,860 
          
    Book value per share (GAAP)$42.79 $42.13 $41.82 $41.77 $41.25 
    Tangible book value per share (non-GAAP)$27.07 $26.36 $26.02 $23.89 $23.32 
          
    Tangible Common Equity Ratio     
    Shareholders’ equity to assets (GAAP) 14.93% 14.85% 14.80% 13.45% 13.39%
    Tangible common equity ratio (non-GAAP) 9.99% 9.84% 9.76% 8.16% 8.04%
    Adjusted Efficiency Ratio     
    Net interest income (FTE) (GAAP)$137,432 $135,502 $133,576 $127,598 $125,850 
          
    Total noninterest income (GAAP)$36,395 $34,218 $89,299 $38,762 $41,381 
    Gain on sales of MSR —  (252) —  —  (3,472)
    Gain on extinguishment of debt —  —  —  —  (56)
    Gain on sale of insurance agency —  —  (53,349) —  — 
    Total adjusted noninterest income (non-GAAP)$36,395 $33,966 $35,950 $38,762 $37,853 
          
    Noninterest expense (GAAP)$113,876 $114,747 $121,983 $111,976 $112,912 
    Amortization of intangibles (1,080) (1,133) (1,160) (1,186) (1,212)
    Merger and conversion expense (791) (2,076) (11,273) —  — 
    Total adjusted noninterest expense (non-GAAP)$112,005 $111,538 $109,550 $110,790 $111,700 
          
    Efficiency ratio (GAAP) 65.51% 67.61% 54.73% 67.31% 67.52%
    Adjusted efficiency ratio (non-GAAP) 64.43% 65.82% 64.62% 66.60% 68.23%
          
    Adjusted Net Interest Income and Adjusted Net Interest Margin   
    Net interest income (FTE) (GAAP)$137,432 $135,502 $133,576 $127,598 $125,850 
    Net interest income collected on problem loans (1,026) (151) (642) 146  (123)
    Accretion recognized on purchased loans (558) (616) (1,089) (897) (800)
    Adjustments to net interest income$(1,584)$(767)$(1,731)$(751)$(923)
    Adjusted net interest income (FTE) (non-GAAP)$135,848 $134,735 $131,845 $126,847 $124,927 
          
    Net interest margin (GAAP) 3.45% 3.36% 3.36% 3.31% 3.30%
    Adjusted net interest margin (non-GAAP) 3.42% 3.34% 3.32% 3.29% 3.28%
          
    Adjusted Loan Yield     
    Loan interest income (FTE) (GAAP)$199,504 $201,562 $204,935 $200,670 $194,640 
    Net interest income collected on problem loans (1,026) (151) (642) 146  (123)
    Accretion recognized on purchased loans (558) (616) (1,089) (897) (800)
    Adjusted loan interest income (FTE) (non-GAAP)$197,920 $200,795 $203,204 $199,919 $193,717 
          
    Loan yield (GAAP) 6.24% 6.29% 6.47% 6.41% 6.30%
    Adjusted loan yield (non-GAAP) 6.19% 6.27% 6.41% 6.38% 6.27%

    (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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