Renasant Corporation

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, 2025 Dec 31, 2024 Mar 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

Story Continues

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 assets 0.94 % 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 equity 6.25  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 ratio 33.85  31.43  18.64  31.88  31.43

Capital and Balance Sheet Ratios

As of Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 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, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 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, 2025 December 31, 2024 March 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 $ 199,504 6.24 % $ 12,746,941 $ 201,562 6.29 % $ 12,407,976 $ 194,640 6.30 % Loans held for sale  200,917  3,008 5.99 %  250,812  3,564 5.69 %  155,382  2,308 5.94 % Taxable securities  1,883,535  10,971 2.33 %  1,784,167  9,408 2.11 %  1,891,817  9,505 2.01 % Tax-exempt securities(1)  259,800  1,443 2.22 %  261,679  1,400 2.14 %  270,279  1,505 2.23 % Total securities  2,143,335  12,414 2.32 %  2,045,846  10,808 2.11 %  2,162,096  11,010 2.04 % Interest-bearing balances with banks  824,743  8,639 4.25 %  1,025,294  12,030 4.67 %  570,336  7,781 5.49 % Total interest-earning assets  16,135,864  223,565 5.61 %  16,068,893  227,964 5.65 %  15,295,790  215,739 5.66 % 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 $ 54,710 2.83 % $ 7,629,685 $ 57,605 3.00 % $ 6,955,989 $ 52,500 3.03 % Savings deposits  813,451  711 0.35 %  804,132  706 0.35 %  860,397  730 0.34 % Brokered deposits  —  — — %  60,298  1,013 6.68 %  445,608  5,987 5.39 % Time deposits  2,474,218  23,965 3.93 %  2,512,097  26,247 4.16 %  2,319,420  23,396 4.06 % Total interest-bearing deposits  11,123,286  79,386 2.89 %  11,006,212  85,571 3.09 %  10,581,414  82,613 3.13 % Borrowed funds  556,734  6,747 4.88 %  556,966  6,891 4.94 %  562,398  7,276 5.35 % Total interest-bearing liabilities  11,680,020  86,133 2.99 %  11,563,178  92,462 3.18 %  11,143,812  89,889 3.24 % 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  $ 137,432 3.45 %  $ 135,502 3.36 %  $ 125,850 3.30 % 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, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 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, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 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

View Comments