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, 2024Sep 30, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023Net 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) “The fourth quarter results marked the end to a successful year for Renasant. We announced a transformative merger with The First in July and, in the midst of diligently planning for a successful combination, our team maintained its focus on generating organic growth, disciplined pricing on both sides of the balance sheet and steady credit performance,” remarked C. Mitchell Waycaster, Chief Executive Officer of the Company. 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, respectivelyNet interest income (fully tax equivalent) for the fourth quarter of 2024 was $135.5 million, up $1.9 million on a linked quarter basisFor the fourth quarter of 2024, net interest margin was 3.36%, which was unchanged on a linked quarter basisCost of total deposits was 2.35% for the fourth quarter of 2024, down 16 basis points on a linked quarter basisNoninterest 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 quarterMortgage 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 basisNoninterest 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 Balance Sheet Loans increased $257.4 million on a linked quarter basis, representing 8.1% annualized net loan growthSecurities 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 millionDeposits 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 Capital and Stock Repurchase Program Book value per share and tangible book value per share (non-GAAP)(1) increased 0.7% and 1.3%, respectively, on a linked quarter basisThe 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 Credit Quality 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 2024The 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 basisThe 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, 2024Net loan charge-offs for the fourth quarter of 2024 were $1.7 million, or 0.05% of average loans on an annualized basisNonperforming 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 (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 Twelve Months Ended Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023Interest 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 130,282 130,063 121,726 120,852 123,435 502,923 503,734 Noninterest income 34,218 89,299 38,762 41,381 20,356 203,660 113,075 Noninterest expense 114,747 121,983 111,976 112,912 111,880 461,618 439,622 Income before income taxes 49,753 97,379 48,512 49,321 31,911 244,965 177,187 Income taxes 5,006 24,924 9,666 9,912 3,787 49,508 32,509 Net income$44,747 $72,455 $38,846 $39,409 $28,124 $195,457 $144,678 Adjusted net income (non-GAAP)(1)$46,458 $42,960 $38,846 $36,572 $42,887 $165,066 $177,657 Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1)$54,177 $56,238 $51,812 $48,231 $52,614 $210,458 $233,403 Basic earnings per share$0.70 $1.18 $0.69 $0.70 $0.50 $3.29 $2.58 Diluted earnings per share 0.70 1.18 0.69 0.70 0.50 3.27 2.56 Adjusted diluted earnings per share (non-GAAP)(1) 0.73 0.70 0.69 0.65 0.76 2.76 3.15 Average basic shares outstanding 63,565,437 61,217,094 56,342,909 56,208,348 56,141,628 59,350,157 56,099,689 Average diluted shares outstanding 64,056,303 61,632,448 56,684,626 56,531,078 56,611,217 59,748,790 56,448,163 Cash dividends per common share$0.22 $0.22 $0.22 $0.22 $0.22 $0.88 $0.88 (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 Twelve Months Ended Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023Return on average assets0.99%1.63%0.90%0.92%0.65% 1.11%0.84%Adjusted return on average assets (non-GAAP)(1)1.03 0.97 0.90 0.86 0.99 0.94 1.03 Return on average tangible assets (non-GAAP)(1)1.07 1.75 0.98 1.00 0.71 1.20 0.92 Adjusted return on average tangible assets (non-GAAP)(1)1.11 1.05 0.98 0.93 1.08 1.02 1.12 Return on average equity6.70 11.29 6.68 6.85 4.93 7.92 6.50 Adjusted return on average equity (non-GAAP)(1)6.96 6.69 6.68 6.36 7.53 6.69 7.99 Return on average tangible equity (non-GAAP)(1)10.97 18.83 12.04 12.45 9.26 13.63 12.29 Adjusted return on average tangible equity (non-GAAP)(1)11.38 11.26 12.04 11.58 13.94 11.55 15.02 Efficiency ratio (fully taxable equivalent)67.61 54.73 67.31 67.52 75.11 63.57 68.33 Adjusted efficiency ratio (non-GAAP)(1)65.82 64.62 66.60 68.23 66.18 66.30 63.48 Dividend payout ratio31.43 18.64 31.88 31.43 44.00 26.75 34.11 Capital and Balance Sheet Ratios As of Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Shares outstanding 63,565,690 63,564,028 56,367,924 56,304,860 56,142,207 Market value per share$35.75 $32.50 $30.54 $31.32 $33.68 Book value per share 42.13 41.82 41.77 41.25 40.92 Tangible book value per share (non-GAAP)(1) 26.36 26.02 23.89 23.32 22.92 Shareholders’ equity to assets 14.85% 14.80% 13.45% 13.39% 13.23%Tangible common equity ratio (non-GAAP)(1) 9.84 9.76 8.16 8.04 7.87 Leverage ratio 11.34 11.32 9.81 9.75 9.62 Common equity tier 1 capital ratio 12.72 12.88 10.75 10.59 10.52 Tier 1 risk-based capital ratio 13.49 13.67 11.53 11.37 11.30 Total risk-based capital ratio 17.07 17.32 15.15 15.00 14.93 (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 Twelve Months Ended Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023Noninterest income Service charges on deposit accounts$10,549$10,438$10,286$10,506$10,603 $41,779$39,199 Fees and commissions 4,181 4,116 3,944 3,949 4,130 16,190 17,901 Insurance commissions — — 2,758 2,716 2,583 5,474 11,102 Wealth management revenue 6,371 5,835 5,684 5,669 5,668 23,559 22,132 Mortgage banking income 6,861 8,447 9,698 11,370 6,592 36,376 32,413 Gain on sale of insurance agency — 53,349 — — — 53,349 — Net losses on sales of securities (including impairments) — — — — (19,352) — (41,790)Gain on extinguishment of debt — — — 56 620 56 620 BOLI income 3,317 2,858 2,701 2,691 2,589 11,567 10,463 Other 2,939 4,256 3,691 4,424 6,923 15,310 21,035 Total noninterest income$34,218$89,299$38,762$41,381$20,356 $203,660$113,075 Noninterest expense Salaries and employee benefits$70,260$71,307$70,731$71,470$71,841 $283,768$281,768 Data processing 4,145 4,133 3,945 3,807 3,971 16,030 15,195 Net occupancy and equipment 11,312 11,415 11,844 11,389 11,653 45,960 46,471 Other real estate owned 590 56 105 107 306 858 267 Professional fees 2,686 3,189 3,195 3,348 2,854 12,418 13,671 Advertising and public relations 3,840 3,677 3,807 4,886 3,084 16,210 14,726 Intangible amortization 1,133 1,160 1,186 1,212 1,274 4,691 5,380 Communications 2,067 2,176 2,112 2,024 2,026 8,379 8,238 Merger and conversion related expenses 2,076 11,273 — — — 13,349 — Other 16,638 13,597 15,051 14,669 14,871 59,955 53,906 Total noninterest expense$114,747$121,983$111,976$112,912$111,880 $461,618$439,622 Mortgage Banking Income (Dollars in thousands)Three Months Ended Twelve Months Ended Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023Gain on sales of loans, net$2,379$4,499$5,199$4,535$1,860 $16,612$14,573Fees, net 2,850 2,646 2,866 1,854 2,010 10,216 9,051Mortgage servicing income, net 1,632 1,302 1,633 4,981 2,722 9,548 8,789Total mortgage banking income$6,861$8,447$9,698$11,370$6,592 $36,376$32,413 Balance Sheet (Dollars in thousands)As of Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Assets Cash and cash equivalents$1,092,032 $1,275,620 $851,906 $844,400 $801,351 Securities held to maturity, at amortized cost 1,126,112 1,150,531 1,174,663 1,199,111 1,221,464 Securities available for sale, at fair value 831,013 764,844 749,685 764,486 923,279 Loans held for sale, at fair value 246,171 291,735 266,406 191,440 179,756 Loans held for investment 12,885,020 12,627,648 12,604,755 12,500,525 12,351,230 Allowance for credit losses on loans (201,756) (200,378) (199,871) (201,052) (198,578)Loans, net 12,683,264 12,427,270 12,404,884 12,299,473 12,152,652 Premises and equipment, net 279,796 280,550 280,966 282,193 283,195 Other real estate owned 8,673 9,136 7,366 9,142 9,622 Goodwill and other intangibles 1,003,003 1,004,136 1,008,062 1,009,248 1,010,460 Bank-owned life insurance 391,810 389,138 387,791 385,186 382,584 Mortgage servicing rights 72,991 71,990 72,092 71,596 91,688 Other assets 300,003 293,890 306,570 289,466 304,484 Total assets$18,034,868 $17,958,840 $17,510,391 $17,345,741 $17,360,535 Liabilities and Shareholders’ Equity Liabilities Deposits: Noninterest-bearing$3,403,981 $3,529,801 $3,539,453 $3,516,164 $3,583,675 Interest-bearing 11,168,631 10,979,950 10,715,760 10,720,999 10,493,110 Total deposits 14,572,612 14,509,751 14,255,213 14,237,163 14,076,785 Short-term borrowings 108,018 108,732 232,741 108,121 307,577 Long-term debt 430,614 433,177 428,677 428,047 429,400 Other liabilities 245,306 249,102 239,059 250,060 249,390 Total liabilities 15,356,550 15,300,762 15,155,690 15,023,391 15,063,152 Shareholders’ equity: Common stock 332,421 332,421 296,483 296,483 296,483 Treasury stock (97,196) (97,251) (97,534) (99,683) (105,249)Additional paid-in capital 1,491,847 1,488,678 1,304,782 1,303,613 1,308,281 Retained earnings 1,093,854 1,063,324 1,005,086 978,880 952,124 Accumulated other comprehensive loss (142,608) (129,094) (154,116) (156,943) (154,256)Total shareholders’ equity 2,678,318 2,658,078 2,354,701 2,322,350 2,297,383 Total liabilities and shareholders’ equity$18,034,868 $17,958,840 $17,510,391 $17,345,741 $17,360,535 Net Interest Income and Net Interest Margin (Dollars in thousands)Three Months Ended December 31, 2024September 30, 2024December 31, 2023 AverageBalanceInterestIncome/ExpenseYield/ RateAverageBalanceInterestIncome/ExpenseYield/ RateAverageBalanceInterestIncome/ExpenseYield/ RateInterest-earning assets: Loans held for investment$12,746,941$201,5626.29%$12,584,104$204,9356.47%$12,249,429$190,8576.18%Loans held for sale 250,812 3,5645.69% 272,110 4,2126.19% 199,510 3,3296.68%Taxable securities 1,784,167 9,4082.11% 1,794,421 9,2122.05% 2,050,175 9,4901.85%Tax-exempt securities(1) 261,679 1,4002.14% 262,621 1,3902.12% 282,698 1,5582.20%Total securities 2,045,846 10,8082.11% 2,057,042 10,6022.06% 2,332,873 11,0481.89%Interest-bearing balances with banks 1,025,294 12,0304.67% 894,313 11,8725.28% 552,301 7,8395.63%Total interest-earning assets 16,068,893 227,9645.65% 15,807,569 231,6215.82% 15,334,113 213,0735.52%Cash and due from banks 188,493 189,425 180,609 Intangible assets 1,003,551 1,004,701 1,011,130 Other assets 682,211 679,969 669,988 Total assets$17,943,148 $17,681,664 $17,195,840 Interest-bearing liabilities: Interest-bearing demand(2)$7,629,685$57,6053.00%$7,333,508$60,3263.26%$6,721,053$47,7832.82%Savings deposits 804,132 7060.35% 815,545 7290.36% 888,692 7650.34%Brokered deposits 60,298 1,0136.68% 150,991 1,9985.25% 632,704 8,5945.39%Time deposits 2,512,097 26,2474.16% 2,546,860 27,7344.33% 2,185,737 20,0263.63%Total interest-bearing deposits 11,006,212 85,5713.09% 10,846,904 90,7873.32% 10,428,186 77,1682.94%Borrowed funds 556,966 6,8914.94% 562,146 7,2585.14% 564,715 7,3105.16%Total interest-bearing liabilities 11,563,178 92,4623.18% 11,409,050 98,0453.41% 10,992,901 84,4783.05%Noninterest-bearing deposits 3,502,931 3,509,266 3,703,050 Other liabilities 220,154 209,762 238,864 Shareholders’ equity 2,656,885 2,553,586 2,261,025 Total liabilities and shareholders’ equity$17,943,148 $17,681,664 $17,195,840 Net interest income/ net interest margin $135,5023.36% $133,5763.36% $128,5953.33%Cost of funding 2.44% 2.61% 2.28%Cost of total deposits 2.35% 2.51% 2.17% (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. Net Interest Income and Net Interest Margin, continued (Dollars in thousands)Twelve Months Ended December 31, 2024December 31, 2023 AverageBalanceInterestIncome/ExpenseYield/ RateAverageBalanceInterestIncome/ExpenseYield/ RateInterest-earning assets: Loans held for investment$12,579,143$801,8076.37%$11,963,141$713,8975.97%Loans held for sale 224,734 13,6146.06% 181,253 11,8076.51%Taxable securities(1) 1,825,404 37,3832.05% 2,313,874 44,6191.93%Tax-exempt securities 264,615 5,7462.17% 332,749 7,6342.29%Total securities 2,090,019 43,1292.06% 2,646,623 52,2531.97%Interest-bearing balances with banks 772,274 39,5575.12% 568,155 30,3755.35%Total interest-earning assets 15,666,170 898,1075.73% 15,359,172 808,3325.26%Cash and due from banks 188,487 187,127 Intangible assets 1,006,665 1,012,239 Other assets 691,373 673,345 Total assets$17,552,695 $17,231,883 Interest-bearing liabilities: Interest-bearing demand(2)$7,254,646$226,5633.12%$6,357,753$138,7302.18%Savings deposits 829,818 2,8940.35% 971,522 3,1970.33%Brokered deposits 237,164 12,9425.46% 697,699 36,0395.17%Time deposits 2,466,906 104,1934.22% 1,874,224 54,3652.90%Total interest-bearing deposits 10,788,534 346,5923.21% 9,901,198 232,3312.35%Borrowed funds 566,332 28,9895.12% 910,080 45,6615.02%Total interest-bearing liabilities 11,354,866 375,5813.31% 10,811,278 277,9922.57%Noninterest-bearing deposits 3,509,958 3,979,951 Other liabilities 221,487 216,148 Shareholders’ equity 2,466,384 2,224,506 Total liabilities and shareholders’ equity$17,552,695 $17,231,883 Net interest income/ net interest margin $522,5263.34% $530,3403.45%Cost of funding 2.53% 1.88%Cost of total deposits 2.42% 1.67% (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. Supplemental Margin Information (Dollars in thousands)Three Months Ended Twelve Months Ended Dec 31, 2024Sep 30, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023Earning asset mix: Loans held for investment 79.33% 79.61% 79.88% 80.29% 77.89%Loans held for sale 1.56 1.72 1.30 1.43 1.18 Securities 12.73 13.01 15.21 13.34 17.23 Interest-bearing balances with banks 6.38 5.66 3.61 4.94 3.70 Total 100.00% 100.00% 100.00% 100.00% 100.00% Funding sources mix: Noninterest-bearing demand 23.25% 23.52% 25.20% 23.61% 26.91%Interest-bearing demand(1) 50.64 49.16 45.73 48.80 42.98 Savings 5.34 5.47 6.05 5.58 6.57 Brokered deposits 0.40 1.01 4.31 1.60 4.72 Time deposits 16.67 17.07 14.87 16.60 12.67 Borrowed funds 3.70 3.77 3.84 3.81 6.15 Total 100.00% 100.00% 100.00% 100.00% 100.00% Net interest income collected on problem loans$151 $642 $283 $770 $219 Total accretion on purchased loans 616 1,089 1,117 3,402 4,166 Total impact on net interest income$767 $1,731 $1,400 $4,172 $4,385 Impact on net interest margin 0.02% 0.04% 0.04% 0.03% 0.03%Impact on loan yield 0.02 0.05 0.05 0.03% 0.04% (1) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits. Loan Portfolio (Dollars in thousands)As of Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Loan Portfolio: Commercial, financial, agricultural$1,885,817$1,804,961$1,847,762$1,869,408$1,871,821Lease financing 90,591 98,159 102,996 107,474 116,020Real estate - construction 1,093,653 1,198,838 1,355,425 1,243,535 1,333,397Real estate - 1-4 family mortgages 3,488,877 3,440,038 3,435,818 3,429,286 3,439,919Real estate - commercial mortgages 6,236,068 5,995,152 5,766,478 5,753,230 5,486,550Installment loans to individuals 90,014 90,500 96,276 97,592 103,523Total loans$12,885,020$12,627,648$12,604,755$12,500,525$12,351,230 Credit Quality and Allowance for Credit Losses on Loans (Dollars in thousands)As of Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Nonperforming Assets: Nonaccruing loans$110,811 $113,872 $97,795 $73,774 $68,816 Loans 90 days or more past due 2,464 5,351 240 451 554 Total nonperforming loans 113,275 119,223 98,035 74,225 69,370 Other real estate owned 8,673 9,136 7,366 9,142 9,622 Total nonperforming assets$121,948 $128,359 $105,401 $83,367 $78,992 Criticized Loans Classified loans$241,708 $218,135 $191,595 $206,502 $166,893 Special Mention loans 130,882 163,804 138,343 138,366 99,699 Criticized loans(1)$372,590 $381,939 $329,938 $344,868 $266,592 Allowance for credit losses on loans$201,756 $200,378 $199,871 $201,052 $198,578 Net loan charge-offs$1,722 $703 $5,481 $164 $1,713 Annualized net loan charge-offs / average loans 0.05% 0.02% 0.18% 0.01% 0.06%Nonperforming loans / total loans 0.88 0.94 0.78 0.59 0.56 Nonperforming assets / total assets 0.68 0.71 0.60 0.48 0.46 Allowance for credit losses on loans / total loans 1.57 1.59 1.59 1.61 1.61 Allowance for credit losses on loans / nonperforming loans 178.11 168.07 203.88 270.87 286.26 Criticized loans / total loans 2.89 3.02 2.62 2.76 2.16 (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, January 29, 2025. The webcast is accessible through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=8ssY2K7l. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2024 Fourth 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 8623913 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 12, 2025. ABOUT RENASANT CORPORATION: Renasant Corporation is the parent of Renasant Bank, a 120-year-old financial services institution. Renasant has assets of approximately $18.0 billion and operates 186 banking, lending, mortgage and wealth management offices throughout the Southeast as well as offering 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-announced acquisition of The First Bancshares, Inc.) 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 the proposed merger with The First Bancshares, Inc.; (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 policy by regulatory agencies or increased scrutiny by, and/or additional regulatory requirements of, regulatory agencies as a result of the Company’s proposed merger with The First Bancshares, Inc.; (ix) changes in the securities and foreign exchange markets; (x) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (xi) 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; (xii) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xiii) 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; (xiv) general economic, market or business conditions, including the impact of inflation; (xv) changes in demand for loan and deposit products and other financial services; (xvi) concentrations of credit or deposit exposure; (xvii) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xviii) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xix) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area; (xx) geopolitical conditions, including acts or threats of terrorism or 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; (xxi) the impact, extent and timing of technological changes; and (xxii) 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 fourth quarter of 2024, merger and conversion expenses and the gain on the sale of mortgage servicing rights), 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 Twelve Months Ended Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023 Dec 31, 2024Dec 31, 2023Adjusted Pre-Provision Net Revenue (“PPNR”) Net income (GAAP)$44,747 $72,455 $38,846 $39,409 $28,124 $195,457 $144,678 Income taxes 5,006 24,924 9,666 9,912 3,787 49,508 32,509 Provision for credit losses (including unfunded commitments) 2,600 935 3,300 2,438 2,518 9,273 15,593 Pre-provision net revenue (non-GAAP)$52,353 $98,314 $51,812 $51,759 $34,429 $254,238 $192,780 Merger and conversion expense 2,076 11,273 — — — 13,349 — Gain on extinguishment of debt — — — (56) (620) (56) (620)Gain on sales of MSR (252) — — (3,472) (547) (3,724) (547)Gain on sale of insurance agency — (53,349) — — — (53,349) — Losses on sales of securities (including impairments) — — — — 19,352 — 41,790 Adjusted pre-provision net revenue (non-GAAP)$54,177 $56,238 $51,812 $48,231 $52,614 $210,458 $233,403 Adjusted Net Income and Adjusted Tangible Net Income Net income (GAAP)$44,747 $72,455 $38,846 $39,409 $28,124 $195,457 $144,678 Amortization of intangibles 1,133 1,160 1,186 1,212 1,274 4,691 5,380 Tax effect of adjustments noted above(1) (283) (296) (233) (237) (240) (1,173) (1,012)Tangible net income (non-GAAP)$45,597 $73,319 $39,799 $40,384 $29,158 $198,975 $149,046 Net income (GAAP)$44,747 $72,455 $38,846 $39,409 $28,124 $195,457 $144,678 Merger and conversion expense 2,076 11,273 — — — 13,349 — Gain on extinguishment of debt — — — (56) (620) (56) (620)Gain on sales of MSR (252) — — (3,472) (547) (3,724) (547)Gain on sale of insurance agency — (53,349) — — — (53,349) — Losses on sales of securities (including impairments) — — — — 19,352 — 41,790 Tax effect of adjustments noted above(1) (113) 12,581 — 691 (3,422) 13,389 (7,644)Adjusted net income (non-GAAP)$46,458 $42,960 $38,846 $36,572 $42,887 $165,066 $177,657 Amortization of intangibles 1,133 1,160 1,186 1,212 1,274 4,691 5,380 Tax effect of adjustments noted above(1) (283) (296) (233) (237) (240) (1,173) (1,012)Adjusted tangible net income (non-GAAP)$47,308 $43,824 $39,799 $37,547 $43,921 $168,584 $182,025 Tangible Assets and Tangible Shareholders’ Equity Average shareholders’ equity (GAAP)$2,656,885 $2,553,586 $2,337,731 $2,314,281 $2,261,025 $2,466,384 $2,224,506 Average intangible assets (1,003,551) (1,004,701) (1,008,638) (1,009,825) (1,011,130) (1,006,665) (1,012,239)Average tangible shareholders’ equity (non-GAAP)$1,653,334 $1,548,885 $1,329,093 $1,304,456 $1,249,895 $1,459,719 $1,212,267 Average assets (GAAP)$17,943,148 $17,681,664 $17,371,369 $17,203,013 $17,195,840 $17,552,695 $17,231,883 Average intangible assets (1,003,551) (1,004,701) (1,008,638) (1,009,825) (1,011,130) (1,006,665) (1,012,239)Average tangible assets (non-GAAP)$16,939,597 $16,676,963 $16,362,731 $16,193,188 $16,184,710 $16,546,030 $16,219,644 Shareholders’ equity (GAAP)$2,678,318 $2,658,078 $2,354,701 $2,322,350 $2,297,383 $2,678,318 $2,297,383 Intangible assets (1,003,003) (1,004,136) (1,008,062) (1,009,248) (1,010,460) (1,003,003) (1,010,460)Tangible shareholders’ equity (non-GAAP)$1,675,315 $1,653,942 $1,346,639 $1,313,102 $1,286,923 $1,675,315 $1,286,923 Total assets (GAAP)$18,034,868 $17,958,840 $17,510,391 $17,345,741 $17,360,535 $18,034,868 $17,360,535 Intangible assets (1,003,003) (1,004,136) (1,008,062) (1,009,248) (1,010,460) (1,003,003) (1,010,460)Total tangible assets (non-GAAP)$17,031,865 $16,954,704 $16,502,329 $16,336,493 $16,350,075 $17,031,865 $16,350,075 Adjusted Performance Ratios Return on average assets (GAAP) 0.99% 1.63% 0.90% 0.92% 0.65% 1.11% 0.84%Adjusted return on average assets (non-GAAP) 1.03 0.97 0.90 0.86 0.99 0.94 1.03 Return on average tangible assets (non-GAAP) 1.07 1.75 0.98 1.00 0.71 1.20 0.92 Pre-provision net revenue to average assets (non-GAAP) 1.16 2.21 1.20 1.21 0.79 1.45 1.12 Adjusted pre-provision net revenue to average assets (non-GAAP) 1.20 1.27 1.20 1.13 1.21 1.20 1.35 Adjusted return on average tangible assets (non-GAAP) 1.11 1.05 0.98 0.93 1.08 1.02 1.12 Return on average equity (GAAP) 6.70 11.29 6.68 6.85 4.93 7.92 6.50 Adjusted return on average equity (non-GAAP) 6.96 6.69 6.68 6.36 7.53 6.69 7.99 Return on average tangible equity (non-GAAP) 10.97 18.83 12.04 12.45 9.26 13.63 12.29 Adjusted return on average tangible equity (non-GAAP) 11.38 11.26 12.04 11.58 13.94 11.55 15.02 Adjusted Diluted Earnings Per Share Average diluted shares outstanding 64,056,303 61,632,448 56,684,626 56,531,078 56,611,217 59,748,790 56,448,163 Diluted earnings per share (GAAP)$0.70 $1.18 $0.69 $0.70 $0.50 $3.27 $2.56 Adjusted diluted earnings per share (non-GAAP)$0.73 $0.70 $0.69 $0.65 $0.76 $2.76 $3.15 Tangible Book Value Per Share Shares outstanding 63,565,690 63,564,028 56,367,924 56,304,860 56,142,207 63,565,690 56,142,207 Book value per share (GAAP)$42.13 $41.82 $41.77 $41.25 $40.92 $42.13 $40.92 Tangible book value per share (non-GAAP)$26.36 $26.02 $23.89 $23.32 $22.92 $26.36 $22.92 Tangible Common Equity Ratio Shareholders’ equity to assets (GAAP) 14.85% 14.80% 13.45% 13.39% 13.23% 14.85% 13.23%Tangible common equity ratio (non-GAAP) 9.84% 9.76% 8.16% 8.04% 7.87% 9.84% 7.87%Adjusted Efficiency Ratio Net interest income (FTE) (GAAP)$135,502 $133,576 $127,598 $125,850 $128,595 $522,526 $530,340 Total noninterest income (GAAP)$34,218 $89,299 $38,762 $41,381 $20,356 $203,660 $113,075 Gain on sales of MSR (252) — — (3,472) (547) (3,724) (547)Gain on extinguishment of debt — — — (56) (620) (56) (620)Gain on sale of insurance agency — (53,349) — — — 53,349 — Losses on sales of securities (including impairments) — — — — 19,352 — 41,790 Total adjusted noninterest income (non-GAAP)$33,966 $35,950 $38,762 $37,853 $38,541 $146,531 $153,698 Noninterest expense (GAAP)$114,747 $121,983 $111,976 $112,912 $111,880 $461,618 $439,622 Amortization of intangibles (1,133) (1,160) (1,186) (1,212) (1,274) (4,691) (5,380)Merger and conversion expense (2,076) (11,273) — — — (13,349) — Total adjusted noninterest expense (non-GAAP)$111,538 $109,550 $110,790 $111,700 $110,606 $443,578 $434,242 Efficiency ratio (GAAP) 67.61% 54.73% 67.31% 67.52% 75.11% 63.57% 68.33%Adjusted efficiency ratio (non-GAAP) 65.82% 64.62% 66.60% 68.23% 66.18% 66.30% 63.48% Adjusted Net Interest Income and Adjusted Net Interest Margin Net interest income (FTE) (GAAP)$135,502 $133,576 $127,598 $125,850 $128,595 $522,526 $530,340 Net interest income collected on problem loans (151) (642) 146 (123) (283) (770) (219)Accretion recognized on purchased loans (616) (1,089) (897) (800) (1,117) (3,402) (4,166)Adjustments to net interest income$(767)$(1,731)$(751)$(923)$(1,400) $(4,172)$(4,385)Adjusted net interest income (FTE) (non-GAAP)$134,735 $131,845 $126,847 $124,927 $127,195 $518,354 $525,955 Net interest margin (GAAP) 3.36% 3.36% 3.31% 3.30% 3.33% 3.34% 3.45%Adjusted net interest margin (non-GAAP) 3.34% 3.32% 3.29% 3.28% 3.29% 3.31% 3.42% Adjusted Loan Yield Loan interest income (FTE) (GAAP)$201,562 $204,935 $200,670 $194,640 $190,857 $801,807 $713,897 Net interest income collected on problem loans (151) (642) 146 (123) (283) (770) (219)Accretion recognized on purchased loans (616) (1,089) (897) (800) (1,117) (3,402) (4,166)Adjusted loan interest income (FTE) (non-GAAP)$200,795 $203,204 $199,919 $193,717 $189,457 $797,635 $709,512 Loan yield (GAAP) 6.29% 6.47% 6.41% 6.30% 6.18% 6.37% 5.97%Adjusted loan yield (non-GAAP) 6.27% 6.41% 6.38% 6.27% 6.14% 6.34% 5.93% (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

Renasant Corporation Announces Earnings For the Fourth Quarter of 2024

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