TUPELO, Miss., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Renasant Corporation (NYSE: RNST) (the "Company”) today announced earnings results for the third quarter of 2024.
| (Dollars in thousands, except earnings per share) | Three Months Ended | Nine Months Ended | ||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | ||||||||
| Net income and earnings per share: | ||||||||||||
| Net income | $ | 72,455 | $ | 38,846 | $ | 41,833 | $ | 150,710 | $ | 116,554 | ||
| After-tax gain on sale of insurance agency | 38,951 | - | - | 38,951 | - | |||||||
| After-tax loss on sale of securities (including impairments) | - | - | - | - | (17,859 | ) | ||||||
| Basic EPS | 1.18 | 0.69 | 0.75 | 2.60 | 2.08 | |||||||
| Diluted EPS | 1.18 | 0.69 | 0.74 | 2.59 | 2.07 | |||||||
| Adjusted diluted EPS (Non-GAAP)(1) | 0.70 | 0.69 | 0.74 | 2.03 | 2.38 | |||||||
| Impact to diluted EPS from after-tax gain on sale of insurance agency | 0.63 | - | - | 0.67 | - | |||||||
| Impact to diluted EPS from after-tax loss on sale of securities (including impairments) | - | - | - | - | (0.31 | ) | ||||||
"The financial results for the quarter reflect solid performance and balance sheet strength,” remarked C. Mitchell Waycaster, Chief Executive Officer of the Company. "We were pleased to receive shareholder approval today and look forward to completing our merger with The First in the first half of 2025, pending all required regulatory approvals and satisfaction of all other conditions.”
Quarterly Highlights
Merger Agreement with The First Bancshares, Inc. and Other Transactions
- On July 29, 2024, the Company announced its merger with The First Bancshares, Inc. ("The First”). Today, the shareholders of both Renasant and The First approved the merger and the related issuance of shares of Renasant common stock to the shareholders of The First
- On July 31, 2024, Renasant completed its public offering of an aggregate of 7,187,500 shares of its common stock at a price of $32.00 per share. The net proceeds of the offering after deducting underwriting discounts and other offering expenses were approximately $217.0 million
- Effective July 1, 2024, Renasant sold the assets of its insurance agency for cash proceeds of $56.4 million, recognizing a positive after-tax impact to earnings of $34.1 million, which is net of transaction expenses
- Net income for the third quarter of 2024 was $72.5 million; diluted EPS and adjusted diluted EPS (non-GAAP)(1) were $1.18 and $0.70, respectively
- Net interest income (fully tax equivalent) for the third quarter of 2024 was $133.6 million, up $6.0 million on a linked quarter basis
- For the third quarter of 2024, net interest margin was 3.36%, up 5 basis points on a linked quarter basis
- Cost of total deposits was 2.51% for the third quarter of 2024, up 4 basis points on a linked quarter basis
- Noninterest income increased $50.5 million on a linked quarter basis primarily due to the $53.3 million pre-tax gain on the insurance agency sale, offset by the loss of insurance commissions as a result of the sale
- Mortgage banking income decreased $1.3 million on a linked quarter basis. The mortgage division generated $543.6 million in interest rate lock volume in the third quarter of 2024, a decrease of $16.7 million on a linked quarter basis. Gain on sale margin was 1.56% for the third quarter of 2024, down 13 basis points on a linked quarter basis
- Noninterest expense increased $10.0 million on a linked quarter basis. Merger and conversion expenses of $11.3 million for the third quarter of 2024 related to both the announced merger with The First and the insurance agency sale contributed to the increase
- Loans increased $22.9 million on a linked quarter basis, representing 0.7% annualized net loan growth
- Securities decreased $9.0 million on a linked quarter basis. Cash flows related to principal payments reduced securities by $43.4 million which was offset by a positive fair market value adjustment in our available-for-sale portfolio of $34.4 million
- Deposits at September 30, 2024 increased $254.5 million on a linked quarter basis. Brokered deposits decreased $31.8 million on a linked quarter basis to $126.8 million at September 30, 2024. Noninterest bearing deposits decreased $9.7 million on a linked quarter basis and represented 24.3% of total deposits at September 30, 2024
- Book value per share and tangible book value per share (non-GAAP)(1) increased 0.1% and 8.9%, respectively, on a linked quarter basis
- Effective October 22, 2024, the Company's Board of Directors approved 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. This plan replaces the Company's $100.0 million stock repurchase program that expired in October 2024. There was no buyback activity during the third quarter of 2024
- The Company recorded a provision for credit losses of $0.9 million for the third quarter of 2024, compared to $3.3 million for the second quarter of 2024
- The ratio of allowance for credit losses on loans to total loans was 1.59% at September 30, 2024, unchanged on a linked quarter basis
- The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 168.07% at September 30, 2024, compared to 203.88% at June 30, 2024
- Net loan charge-offs for the third quarter of 2024 were $0.7 million, or 0.02% of average loans on an annualized basis
- Nonperforming loans to total loans increased to 0.94% at September 30, 2024 compared to 0.78% at June 30, 2024, and criticized loans (which include classified and Special Mention loans) to total loans increased to 3.02% at September 30, 2024, compared to 2.62% at June 30, 2024
Income Statement
| (Dollars in thousands, except per share data) | Three Months Ended | Nine Months Ended | |||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | |||||||||||||||
| Interest income | |||||||||||||||||||||
| Loans held for investment | $ | 202,655 | $ | 198,397 | $ | 192,390 | $ | 188,535 | $ | 181,129 | $ | 593,442 | $ | 516,114 | |||||||
| Loans held for sale | 4,212 | 3,530 | 2,308 | 3,329 | 3,751 | 10,050 | 8,478 | ||||||||||||||
| Securities | 10,304 | 10,410 | 10,700 | 10,728 | 10,669 | 31,414 | 39,760 | ||||||||||||||
| Other | 11,872 | 7,874 | 7,781 | 7,839 | 10,128 | 27,527 | 22,536 | ||||||||||||||
| Total interest income | 229,043 | 220,211 | 213,179 | 210,431 | 205,677 | 662,433 | 586,888 | ||||||||||||||
| Interest expense | |||||||||||||||||||||
| Deposits | 90,787 | 87,621 | 82,613 | 77,168 | 70,906 | 261,021 | 155,163 | ||||||||||||||
| Borrowings | 7,258 | 7,564 | 7,276 | 7,310 | 7,388 | 22,098 | 38,351 | ||||||||||||||
| Total interest expense | 98,045 | 95,185 | 89,889 | 84,478 | 78,294 | 283,119 | 193,514 | ||||||||||||||
| Net interest income | 130,998 | 125,026 | 123,290 | 125,953 | 127,383 | 379,314 | 393,374 | ||||||||||||||
| Provision for credit losses | |||||||||||||||||||||
| Provision for loan losses | 1,210 | 4,300 | 2,638 | 2,518 | 5,315 | 8,148 | 16,275 | ||||||||||||||
| Recovery of unfunded commitments | (275 | ) | (1,000 | ) | (200 | ) | - | (700 | ) | (1,475 | ) | (3,200 | ) | ||||||||
| Total provision for credit losses | 935 | 3,300 | 2,438 | 2,518 | 4,615 | 6,673 | 13,075 | ||||||||||||||
| Net interest income after provision for credit losses | 130,063 | 121,726 | 120,852 | 123,435 | 122,768 | 372,641 | 380,299 |
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