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.

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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 Advertisement

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