Renasant Corporation Announces Earnings For the Fourth Quarter of 2024
TUPELO, Miss., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Renasant Corporation (NYSE: RNST) (the "Company”) today announced earnings results for the fourth quarter of 2024.
| (Dollars in thousands, except earnings per share) | Three Months Ended | Twelve Months Ended | |||||||||||
| Dec 31, 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 | ) | |||||||
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
- 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
- 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
- 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
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 |
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