Renasant Corporation Announces Earnings for the Second Quarter of 2025

TUPELO, Miss., July 22, 2025 (GLOBE NEWSWIRE) -- Renasant Corporation (NYSE: RNST) (the “Company”) today announced earnings results for the second quarter of 2025. (Dollars in thousands, except earnings per share)Three Months Ended Six Months Ended Jun 30,2025Mar 31,2025Jun 30,2024 Jun 30,2025Jun 30,2024Net income and earnings per share: Net income$1,018 $41,518 $38,846 $42,536 $78,255Merger and conversion related expenses (net of tax) (15,935) (593) — (16,527) —Day 1 acquisition provision (net of tax) (50,026) — — (50,026) —Basic EPS 0.01 0.65 0.69 0.54 1.39Diluted EPS 0.01 0.65 0.69 0.53 1.38Adjusted diluted EPS (Non-GAAP)(1) 0.69 0.66 0.69 1.36 1.33Impact to diluted EPS from merger and conversion related expenses (net of tax) (0.17) (0.01) — (0.21) —Impact to diluted EPS from Day 1 acquisition provision (net of tax) (0.53) — — (0.63) — “The results for the quarter reflect significant progress on the merger and integration of The First Bancshares, Inc.,” remarked Kevin D. Chapman, Chief Executive Officer of the Company. “Our employees continue to work diligently on bringing two strong companies together to better serve our customers.” Quarterly Highlights Merger with The First Bancshares, Inc. On April 1, 2025, the Company completed its merger with The First Bancshares, Inc. (“The First”). As of the effective date of the merger, The First operated 116 locations throughout Louisiana, Mississippi, Alabama, Georgia and Florida and, net of purchase accounting adjustments, had $7.9 billion in assets, $5.2 billion in loans, and $6.4 billion in deposits Earnings Net income for the second quarter of 2025 was $1.0 million, which includes merger and conversion expenses of $20.5 million and Day 1 acquisition provision for credit losses of $66.6 million; diluted EPS and adjusted diluted EPS (non-GAAP)(1) were $0.01 and $0.69, respectivelyNet interest income (fully tax equivalent) for the second quarter of 2025 was $222.7 million, up $85.3 million linked quarter, primarily due to the merger with The FirstFor the second quarter of 2025, net interest margin was 3.85%, up 40 basis points linked quarter. Adjusted net interest margin (non-GAAP)(1) was 3.58%, up 16 basis points linked quarterCost of total deposits was 2.12% for the second quarter of 2025, down 10 basis points linked quarterNoninterest income increased $11.9 million linked quarter, primarily due to the merger with The FirstMortgage banking income increased $3.1 million linked quarter. Gain on sale of mortgage servicing rights (“MSRs”) was $1.5 million. The mortgage division generated $679.6 million in interest rate lock volume in the second quarter of 2025, up $47.5 million linked quarter. Gain on sale margin was 1.87% for the second quarter of 2025, up 45 basis points linked quarterNoninterest expense increased $69.3 million linked quarter, primarily due to the merger with The First. Merger and conversion expenses and core deposit intangible amortization increased $19.7 million and $7.8 million, respectively, linked quarter Balance Sheet The combined company generated net organic loan growth of $311.6 million for the quarter, or 6.9% annualizedSecurities increased $1.4 billion linked quarter, which includes $1.5 billion of securities acquired from The First. In the second quarter of 2025, the Company sold a portion of the acquired securities for proceeds of $686.5 million, which were reinvested in higher yielding assetsThe combined company generated net organic deposit growth of $361.3 million for the quarter, or 6.8% annualized. Noninterest bearing deposits increased $1.8 billion linked quarter, primarily due to the merger with The First, and represented 24.8% of total deposits at June 30, 2025 Capital and Stock Repurchase Program Book value per share and tangible book value per share (non-GAAP)(1) decreased 7.1% and 14.7%, respectively, linked quarter, due to the merger with The FirstThe 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 second quarter of 2025 Credit Quality The Company recorded a provision for credit losses of $81.3 million for the second quarter of 2025, which includes a $66.6 million Day 1 acquisition provision for credit losses and unfunded commitmentsThe ratio of the allowance for credit losses on loans to total loans was 1.57% at June 30, 2025, up one basis point linked quarter; net loan charge-offs for the second quarter of 2025 were $12.1 millionThe coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 204.97% at June 30, 2025, compared to 206.55% at March 31, 2025Nonperforming loans to total loans remained at 0.76% at June 30, 2025, and criticized loans (which include classified and Special Mention loans) to total loans increased to 2.66% at June 30, 2025, compared to 2.45% at March 31, 2025, primarily due to the merger with The First (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 Six Months Ended Jun 30,2025Mar 31,2025Dec 31,2024Sep 30,2024Jun 30,2024 Jun 30,2025Jun 30,2024Interest income Loans held for investment$301,794$196,566$199,240 $202,655 $198,397 $498,360$390,787 Loans held for sale 4,639 3,008 3,564 4,212 3,530 7,647 5,838 Securities 28,408 12,117 10,510 10,304 10,410 40,525 21,110 Other 9,057 8,639 12,030 11,872 7,874 17,696 15,655 Total interest income 343,898 220,330 225,344 229,043 220,211 564,228 433,390 Interest expense Deposits 111,921 79,386 85,571 90,787 87,621 191,307 170,234 Borrowings 13,118 6,747 6,891 7,258 7,564 19,865 14,840 Total interest expense 125,039 86,133 92,462 98,045 95,185 211,172 185,074 Net interest income 218,859 134,197 132,882 130,998 125,026 353,056 248,316 Provision for credit losses Provision for loan losses 75,400 2,050 3,100 1,210 4,300 77,450 6,938 Provision for (Recovery of) unfunded commitments 5,922 2,700 (500) (275) (1,000) 8,622 (1,200)Total provision for credit losses 81,322 4,750 2,600 935 3,300 86,072 5,738 Net interest income after provision for credit losses 137,537 129,447 130,282 130,063 121,726 266,984 242,578 Noninterest income 48,334 36,395 34,218 89,299 38,762 84,729 80,143 Noninterest expense 183,204 113,876 114,747 121,983 111,976 297,080 224,888 Income before income taxes 2,667 51,966 49,753 97,379 48,512 54,633 97,833 Income taxes 1,649 10,448 5,006 24,924 9,666 12,097 19,578 Net income$1,018$41,518$44,747 $72,455 $38,846 $42,536$78,255 Adjusted net income (non-GAAP)(1)$65,877$42,111$46,458 $42,960 $38,846 $107,987$75,421 Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1)$103,001$57,507$54,177 $56,238 $51,812 $160,508$100,043 Basic earnings per share$0.01$0.65$0.70 $1.18 $0.69 $0.54$1.39 Diluted earnings per share 0.01 0.65 0.70 1.18 0.69 0.53 1.38 Adjusted diluted earnings per share (non-GAAP)(1) 0.69 0.66 0.73 0.70 0.69 1.36 1.33 Average basic shares outstanding 94,580,927 63,666,419 63,565,437 61,217,094 56,342,909 79,209,073 56,275,628 Average diluted shares outstanding 95,136,160 64,028,025 64,056,303 61,632,448 56,684,626 79,671,775 56,607,947 Cash dividends per common share$0.22$0.22$0.22 $0.22 $0.22 $0.44$0.44 (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 Six Months Ended Jun 30,2025Mar 31,2025Dec 31,2024Sep 30,2024Jun 30,2024 Jun 30,2025Jun 30,2024Return on average assets0.02%0.94%0.99%1.63%0.90% 0.39%0.91%Adjusted return on average assets (non-GAAP)(1)1.01 0.95 1.03 0.97 0.90 0.98 0.88 Return on average tangible assets (non-GAAP)(1)0.13 1.01 1.07 1.75 0.98 0.48 0.99 Adjusted return on average tangible assets (non-GAAP)(1)1.18 1.02 1.11 1.05 0.98 1.12 0.96 Return on average equity0.11 6.25 6.70 11.29 6.68 2.66 6.77 Adjusted return on average equity (non-GAAP)(1)7.06 6.34 6.96 6.69 6.68 6.76 6.52 Return on average tangible equity (non-GAAP)(1)1.43 10.16 10.97 18.83 12.04 5.24 12.25 Adjusted return on average tangible equity (non-GAAP)(1)13.50 10.30 11.38 11.26 12.04 12.10 11.81 Efficiency ratio (fully taxable equivalent)67.59 65.51 67.61 54.73 67.31 66.78 67.41 Adjusted efficiency ratio (non-GAAP)(1)57.07 64.43 65.82 64.62 66.60 59.95 67.41 Dividend payout ratio2200.00 33.85 31.43 18.64 31.88 81.48 31.65 Capital and Balance Sheet Ratios As of Jun 30,2025Mar 31,2025Dec 31,2024Sep 30,2024Jun 30,2024Shares outstanding 95,019,311 63,739,467 63,565,690 63,564,028 56,367,924 Market value per share$35.93 $33.93 $35.75 $32.50 $30.54 Book value per share 39.77 42.79 42.13 41.82 41.77 Tangible book value per share (non-GAAP)(1) 23.10 27.07 26.36 26.02 23.89 Shareholders’ equity to assets 14.19% 14.93% 14.85% 14.80% 13.45%Tangible common equity ratio (non-GAAP)(1) 8.77 9.99 9.84 9.76 8.16 Leverage ratio(2) 9.36 11.39 11.34 11.32 9.81 Common equity tier 1 capital ratio(2) 11.09 12.59 12.73 12.88 10.75 Tier 1 risk-based capital ratio(2) 11.09 13.35 13.50 13.67 11.53 Total risk-based capital ratio(2) 14.99 16.89 17.08 17.32 15.15 (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. (2) Preliminary Noninterest Income and Noninterest Expense (Dollars in thousands)Three Months Ended Six Months Ended Jun 30,2025Mar 31,2025Dec 31,2024Sep 30,2024Jun 30,2024 Jun 30,2025Jun 30,2024Noninterest income Service charges on deposit accounts$13,618$10,364$10,549$10,438$10,286 $23,982$20,792Fees and commissions 6,650 3,787 4,181 4,116 3,944 10,437 7,893Insurance commissions — — — — 2,758 — 5,474Wealth management revenue 7,345 7,067 6,371 5,835 5,684 14,412 11,353Mortgage banking income 11,263 8,147 6,861 8,447 9,698 19,410 21,068Gain on sale of insurance agency — — — 53,349 — — —Gain on extinguishment of debt — — — — — — 56BOLI income 3,383 2,929 3,317 2,858 2,701 6,312 5,392Other 6,075 4,101 2,939 4,256 3,691 10,176 8,115Total noninterest income$48,334$36,395$34,218$89,299$38,762 $84,729$80,143Noninterest expense Salaries and employee benefits$99,542$71,957$70,260$71,307$70,731 $171,499$142,201Data processing 5,438 4,089 4,145 4,133 3,945 9,527 7,752Net occupancy and equipment 17,359 11,754 11,312 11,415 11,844 29,113 23,233Other real estate owned 157 685 590 56 105 842 212Professional fees 4,223 2,884 2,686 3,189 3,195 7,107 6,543Advertising and public relations 4,490 4,297 3,840 3,677 3,807 8,787 8,693Intangible amortization 8,884 1,080 1,133 1,160 1,186 9,964 2,398Communications 3,184 2,033 2,067 2,176 2,112 5,217 4,136Merger and conversion related expenses 20,479 791 2,076 11,273 — 21,270 —Other 19,448 14,306 16,638 13,597 15,051 33,754 29,720Total noninterest expense$183,204$113,876$114,747$121,983$111,976 $297,080$224,888 Mortgage Banking Income (Dollars in thousands)Three Months Ended Six Months Ended Jun 30,2025Mar 31,2025Dec 31,2024Sep 30,2024Jun 30,2024 Jun 30,2025Jun 30,2024Gain on sales of loans, net$5,316$4,500$2,379$4,499$5,199 $9,816$9,734Fees, net 3,740 2,317 2,850 2,646 2,866 6,057 4,720Mortgage servicing income, net 2,207 1,330 1,632 1,302 1,633 3,537 6,614Total mortgage banking income$11,263$8,147$6,861$8,447$9,698 $19,410$21,068 Balance Sheet (Dollars in thousands)As of Jun 30,2025Mar 31,2025Dec 31,2024Sep 30,2024Jun 30,2024Assets Cash and cash equivalents$1,378,612 $1,091,339 $1,092,032 $1,275,620 $851,906 Securities held to maturity, at amortized cost 1,076,817 1,101,901 1,126,112 1,150,531 1,174,663 Securities available for sale, at fair value 2,471,487 1,002,056 831,013 764,844 749,685 Loans held for sale, at fair value 356,791 226,003 246,171 291,735 266,406 Loans held for investment 18,563,447 13,055,593 12,885,020 12,627,648 12,604,755 Allowance for credit losses on loans (290,770) (203,931) (201,756) (200,378) (199,871)Loans, net 18,272,677 12,851,662 12,683,264 12,427,270 12,404,884 Premises and equipment, net 465,100 279,011 279,796 280,550 280,966 Other real estate owned 11,750 8,654 8,673 9,136 7,366 Goodwill 1,419,782 988,898 988,898 988,898 991,665 Other intangibles 163,751 13,025 14,105 15,238 16,397 Bank-owned life insurance 486,613 337,502 391,810 389,138 387,791 Mortgage servicing rights 64,539 72,902 72,991 71,990 72,092 Other assets 457,056 298,428 300,003 293,890 306,570 Total assets$26,624,975 $18,271,381 $18,034,868 $17,958,840 $17,510,391 Liabilities and Shareholders’ Equity Liabilities Deposits: Noninterest-bearing$5,356,153 $3,541,375 $3,403,981 $3,529,801 $3,539,453 Interest-bearing 16,226,484 11,230,720 11,168,631 10,979,950 10,715,760 Total deposits 21,582,637 14,772,095 14,572,612 14,509,751 14,255,213 Short-term borrowings 405,349 108,015 108,018 108,732 232,741 Long-term debt 556,976 433,309 430,614 433,177 428,677 Other liabilities 301,159 230,857 245,306 249,102 239,059 Total liabilities 22,846,121 15,544,276 15,356,550 15,300,762 15,155,690 Shareholders’ equity: Common stock 488,612 332,421 332,421 332,421 296,483 Treasury stock (90,248) (91,646) (97,196) (97,251) (97,534)Additional paid-in capital 2,393,566 1,486,849 1,491,847 1,488,678 1,304,782 Retained earnings 1,100,965 1,121,102 1,093,854 1,063,324 1,005,086 Accumulated other comprehensive loss (114,041) (121,621) (142,608) (129,094) (154,116)Total shareholders’ equity 3,778,854 2,727,105 2,678,318 2,658,078 2,354,701 Total liabilities and shareholders’ equity$26,624,975 $18,271,381 $18,034,868 $17,958,840 $17,510,391 Net Interest Income and Net Interest Margin (Dollars in thousands)Three Months Ended June 30, 2025March 31, 2025June 30, 2024 AverageBalanceInterestIncome/ExpenseYield/RateAverageBalanceInterestIncome/ExpenseYield/RateAverageBalanceInterestIncome/ExpenseYield/RateInterest-earning assets: Loans held for investment$18,448,000$304,8346.63%$12,966,869$199,5046.24%$12,575,651$200,6706.41%Loans held for sale 287,855 4,6396.45% 200,917 3,0085.99% 219,826 3,5306.42%Taxable securities 3,106,565 24,9173.21% 1,883,535 10,9712.33% 1,832,002 9,2582.02%Tax-exempt securities 462,732 4,3093.72% 259,800 1,4432.22% 263,937 1,4512.20%Total securities 3,569,297 29,2263.28% 2,143,335 12,4142.32% 2,095,939 10,7092.04%Interest-bearing balances with banks 901,803 9,0574.03% 824,743 8,6394.25% 595,030 7,8745.32%Total interest-earning assets 23,206,955 347,7566.01% 16,135,864 223,5655.61% 15,486,446 222,7835.77%Cash and due from banks 357,338 181,869 187,519 Intangible assets 1,589,490 1,002,511 1,008,638 Other assets 1,029,082 669,392 688,766 Total assets$26,182,865 $17,989,636 $17,371,369 Interest-bearing liabilities: Interest-bearing demand(1)$11,191,443$76,5422.74%$7,835,617$54,7102.83%$7,094,411$56,1323.17%Savings deposits 1,322,007 1,0320.31% 813,451 7110.35% 839,638 7290.35%Brokered deposits — ——% — ——% 294,650 3,9445.37%Time deposits 3,404,482 34,3474.05% 2,474,218 23,9653.93% 2,487,873 26,8164.34%Total interest-bearing deposits 15,917,932 111,9212.82% 11,123,286 79,3862.89% 10,716,572 87,6213.28%Borrowed funds 1,036,045 13,1185.07% 556,734 6,7474.88% 583,965 7,5645.19%Total interest-bearing liabilities 16,953,977 125,0392.96% 11,680,020 86,1332.99% 11,300,537 95,1853.38%Noninterest-bearing deposits 5,233,976 3,408,830 3,509,109 Other liabilities 249,861 208,105 223,992 Shareholders’ equity 3,745,051 2,692,681 2,337,731 Total liabilities and shareholders’ equity$26,182,865 $17,989,636 $17,371,369 Net interest income/ net interest margin $222,7173.85% $137,4323.45% $127,5983.31%Cost of funding 2.26% 2.31% 2.58%Cost of total deposits 2.12% 2.22% 2.47% (1) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits. Net Interest Income and Net Interest Margin, continued (Dollars in thousands)Six Months Ended June 30, 2025June 30, 2024 AverageBalanceInterestIncome/ExpenseYield/ RateAverageBalanceInterestIncome/ExpenseYield/ RateInterest-earning assets: Loans held for investment$15,722,576$504,3386.47%$12,491,814$395,3106.35%Loans held for sale 244,626 7,6476.25% 187,604 5,8386.22%Taxable securities 2,498,428 35,8882.87% 1,861,909 18,7632.02%Tax-exempt securities 361,827 5,7523.18% 267,108 2,9562.21%Total securities 2,860,255 41,6402.91% 2,129,017 21,7192.04%Interest-bearing balances with banks 863,486 17,6964.13% 582,683 15,6555.40%Total interest-earning assets 19,690,943 571,3215.84% 15,391,118 438,5225.72%Cash and due from banks 270,088 188,011 Intangible assets 1,297,622 1,009,232 Other assets 850,231 701,770 Total assets$22,108,884 $17,290,131 Interest-bearing liabilities: Interest-bearing demand(1)$9,522,800$131,2522.78%$7,025,200$108,6323.10%Savings deposits 1,069,134 1,7430.33% 850,018 1,4590.34%Brokered deposits — ——% 370,129 9,9315.38%Time deposits 2,941,920 58,3123.99% 2,403,646 50,2124.20%Total interest-bearing deposits 13,533,854 191,3072.85% 10,648,993 170,2343.21%Borrowed funds 797,714 19,8655.00% 573,182 14,8405.19%Total interest-bearing liabilities 14,331,568 211,1722.97% 11,222,175 185,0743.31%Noninterest-bearing deposits 4,326,445 3,513,860 Other liabilities 229,098 228,090 Shareholders’ equity 3,221,773 2,326,006 Total liabilities and shareholders’ equity$22,108,884 $17,290,131 Net interest income/ net interest margin $360,1493.68% $253,4483.30%Cost of funding 2.28% 2.52%Cost of total deposits 2.16% 2.41% (1) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits. Loan Portfolio (Dollars in thousands)As of Jun 30,2025Mar 31,2025Dec 31,2024Sep 30,2024Jun 30,2024Loan Portfolio: Commercial, financial, agricultural$2,666,923$1,888,580$1,885,817$1,804,961$1,847,762Lease financing 89,568 85,412 90,591 98,159 102,996Real estate - construction 1,339,967 1,090,862 1,093,653 1,198,838 1,355,425Real estate - 1-4 family mortgages 4,874,679 3,583,080 3,488,877 3,440,038 3,435,818Real estate - commercial mortgages 9,470,134 6,320,120 6,236,068 5,995,152 5,766,478Installment loans to individuals 122,176 87,539 90,014 90,500 96,276Total loans$18,563,447$13,055,593$12,885,020$12,627,648$12,604,755 Credit Quality and Allowance for Credit Losses on Loans (Dollars in thousands)As of Jun 30,2025Mar 31,2025Dec 31,2024Sep 30,2024Jun 30,2024Nonperforming Assets: Nonaccruing loans$137,999 $98,638 $110,811 $113,872 $97,795 Loans 90 days or more past due 3,860 95 2,464 5,351 240 Total nonperforming loans 141,859 98,733 113,275 119,223 98,035 Other real estate owned 11,750 8,654 8,673 9,136 7,366 Total nonperforming assets$153,609 $107,387 $121,948 $128,359 $105,401 Criticized Loans Classified loans$333,626 $224,654 $241,708 $218,135 $191,595 Special Mention loans 159,931 95,778 130,882 163,804 138,343 Criticized loans(1)$493,557 $320,432 $372,590 $381,939 $329,938 Allowance for credit losses on loans$290,770 $203,931 $201,756 $200,378 $199,871 Net loan charge-offs (recoveries)$12,054 $(125)$1,722 $703 $5,481 Annualized net loan charge-offs / average loans 0.26% —% 0.05% 0.02% 0.18%Nonperforming loans / total loans 0.76 0.76 0.88 0.94 0.78 Nonperforming assets / total assets 0.58 0.59 0.68 0.71 0.60 Allowance for credit losses on loans / total loans 1.57 1.56 1.57 1.59 1.59 Allowance for credit losses on loans / nonperforming loans 204.97 206.55 178.11 168.07 203.88 Criticized loans / total loans 2.66 2.45 2.89 3.02 2.62 (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, July 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=gtM01rRI. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2025 Second 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 6698526 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 6, 2025. ABOUT RENASANT CORPORATION:Renasant Corporation is the parent of Renasant Bank, a 121-year-old financial services institution. Renasant has assets of approximately $26.6 billion and operates 300 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 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 second quarter of 2025, merger and conversion expenses, the Day 1 acquisition provision for credit losses and unfunded commitments, and gain on sales of MSRs), 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 Six Months Ended Jun 30,2025Mar 31,2025Dec 31,2024Sep 30,2024Jun 30,2024 Jun 30,2025Jun 30,2024Adjusted Pre-Provision Net Revenue (“PPNR”) Net income (GAAP)$1,018 $41,518 $44,747 $72,455 $38,846 $42,536 $78,255 Income taxes 1,649 10,448 5,006 24,924 9,666 12,097 19,578 Provision for credit losses (including unfunded commitments) 81,322 4,750 2,600 935 3,300 86,072 5,738 Pre-provision net revenue (non-GAAP)$83,989 $56,716 $52,353 $98,314 $51,812 $140,705 $103,571 Merger and conversion expense 20,479 791 2,076 11,273 — 21,270 — Gain on extinguishment of debt — — — — — — (56)Gain on sales of MSR (1,467) — (252) — — (1,467) (3,472)Gain on sale of insurance agency — — — (53,349) — — — Adjusted pre-provision net revenue (non-GAAP)$103,001 $57,507 $54,177 $56,238 $51,812 $160,508 $100,043 Adjusted Net Income and Adjusted Tangible Net Income Net income (GAAP)$1,018 $41,518 $44,747 $72,455 $38,846 $42,536 $78,255 Amortization of intangibles 8,884 1,080 1,133 1,160 1,186 9,964 2,398 Tax effect of adjustments noted above(1) (2,212) (270) (283) (296) (233) (2,481) (470)Tangible net income (non-GAAP)$7,690 $42,328 $45,597 $73,319 $39,799 $50,019 $80,183 Net income (GAAP)$1,018 $41,518 $44,747 $72,455 $38,846 $42,536 $78,255 Merger and conversion expense 20,479 791 2,076 11,273 — 21,270 — Day 1 acquisition provision for loan losses 62,190 — — — — 62,190 — Day 1 acquisition provision for unfunded commitments 4,422 — — — — 4,422 — Gain on extinguishment of debt — — — — — — (56)Gain on sales of MSR (1,467) — (252) — — (1,467) (3,472)Gain on sale of insurance agency — — — (53,349) — — — Tax effect of adjustments noted above(1) (20,765) (198) (113) 12,581 — (20,964) 694 Adjusted net income (non-GAAP)$65,877 $42,111 $46,458 $42,960 $38,846 $107,987 $75,421 Amortization of intangibles 8,884 1,080 1,133 1,160 1,186 9,964 2,398 Tax effect of adjustments noted above(1) (2,212) (270) (283) (296) (233) (2,481) (470)Adjusted tangible net income (non-GAAP)$72,549 $42,921 $47,308 $43,824 $39,799 $115,470 $77,349 Tangible Assets and Tangible Shareholders’ Equity Average shareholders’ equity (GAAP)$3,745,051 $2,692,681 $2,656,885 $2,553,586 $2,337,731 $3,221,773 $2,326,006 Average intangible assets (1,589,490) (1,002,511) (1,003,551) (1,004,701) (1,008,638) (1,297,622) (1,009,232)Average tangible shareholders’ equity (non-GAAP)$2,155,561 $1,690,170 $1,653,334 $1,548,885 $1,329,093 $1,924,151 $1,316,774 Average assets (GAAP)$26,182,865 $17,989,636 $17,943,148 $17,681,664 $17,371,369 $22,108,884 $17,290,131 Average intangible assets (1,589,490) (1,002,511) (1,003,551) (1,004,701) (1,008,638) (1,297,622) (1,009,232)Average tangible assets (non-GAAP)$24,593,375 $16,987,125 $16,939,597 $16,676,963 $16,362,731 $20,811,262 $16,280,899 Shareholders’ equity (GAAP)$3,778,854 $2,727,105 $2,678,318 $2,658,078 $2,354,701 $3,778,854 $2,354,701 Intangible assets (1,583,533) (1,001,923) (1,003,003) (1,004,136) (1,008,062) (1,583,533) (1,008,062)Tangible shareholders’ equity (non-GAAP)$2,195,321 $1,725,182 $1,675,315 $1,653,942 $1,346,639 $2,195,321 $1,346,639 Total assets (GAAP)$26,624,975 $18,271,381 $18,034,868 $17,958,840 $17,510,391 $26,624,975 $17,510,391 Intangible assets (1,583,533) (1,001,923) (1,003,003) (1,004,136) (1,008,062) (1,583,533) (1,008,062)Total tangible assets (non-GAAP)$25,041,442 $17,269,458 $17,031,865 $16,954,704 $16,502,329 $25,041,442 $16,502,329 Adjusted Performance Ratios Return on average assets (GAAP) 0.02% 0.94% 0.99% 1.63% 0.90% 0.39% 0.91%Adjusted return on average assets (non-GAAP) 1.01 0.95 1.03 0.97 0.90 0.98 0.88 Return on average tangible assets (non-GAAP) 0.13 1.01 1.07 1.75 0.98 0.48 0.99 Pre-provision net revenue to average assets (non-GAAP) 1.29 1.28 1.16 2.21 1.20 1.28 1.20 Adjusted pre-provision net revenue to average assets (non-GAAP) 1.58 1.30 1.20 1.27 1.20 1.46 1.16 Adjusted return on average tangible assets (non-GAAP) 1.18 1.02 1.11 1.05 0.98 1.12 0.96 Return on average equity (GAAP) 0.11 6.25 6.70 11.29 6.68 2.66 6.77 Adjusted return on average equity (non-GAAP) 7.06 6.34 6.96 6.69 6.68 6.76 6.52 Return on average tangible equity (non-GAAP) 1.43 10.16 10.97 18.83 12.04 5.24 12.25 Adjusted return on average tangible equity (non-GAAP) 13.50 10.30 11.38 11.26 12.04 12.10 11.81 Adjusted Diluted Earnings Per Share Average diluted shares outstanding 95,136,160 64,028,025 64,056,303 61,632,448 56,684,626 79,671,775 56,607,947 Diluted earnings per share (GAAP)$0.01 $0.65 $0.70 $1.18 $0.69 $0.53 $1.38 Adjusted diluted earnings per share (non-GAAP)$0.69 $0.66 $0.73 $0.70 $0.69 $1.36 $1.33 Tangible Book Value Per Share Shares outstanding 95,019,311 63,739,467 63,565,690 63,564,028 56,367,924 95,019,311 56,367,924 Book value per share (GAAP)$39.77 $42.79 $42.13 $41.82 $41.77 $39.77 $41.77 Tangible book value per share (non-GAAP)$23.10 $27.07 $26.36 $26.02 $23.89 $23.10 $23.89 Tangible Common Equity Ratio Shareholders’ equity to assets (GAAP) 14.19% 14.93% 14.85% 14.80% 13.45% 14.19% 13.45%Tangible common equity ratio (non-GAAP) 8.77% 9.99% 9.84% 9.76% 8.16% 8.77% 8.16%Adjusted Efficiency Ratio Net interest income (FTE) (GAAP)$222,717 $137,432 $135,502 $133,576 $127,598 $360,149 $253,448 Total noninterest income (GAAP)$48,334 $36,395 $34,218 $89,299 $38,762 $84,729 $80,143 Gain on sales of MSR (1,467) — (252) — — (1,467) (3,472)Gain on extinguishment of debt — — — — — — (56)Gain on sale of insurance agency — — — (53,349) — — — Total adjusted noninterest income (non-GAAP)$46,867 $36,395 $33,966 $35,950 $38,762 $83,262 $76,615 Noninterest expense (GAAP)$183,204 $113,876 $114,747 $121,983 $111,976 $297,080 $224,888 Amortization of intangibles (8,884) (1,080) (1,133) (1,160) (1,186) (9,964) (2,398)Merger and conversion expense (20,479) (791) (2,076) (11,273) — (21,270) — Total adjusted noninterest expense (non-GAAP)$153,841 $112,005 $111,538 $109,550 $110,790 $265,846 $222,490 Efficiency ratio (GAAP) 67.59% 65.51% 67.61% 54.73% 67.31% 66.78% 67.41%Adjusted efficiency ratio (non-GAAP) 57.07% 64.43% 65.82% 64.62% 66.60% 59.95% 67.41% Adjusted Net Interest Income and Adjusted Net Interest Margin Net interest income (FTE) (GAAP)$222,717 $137,432 $135,502 $133,576 $127,598 $360,149 $253,448 Net interest income collected on problem loans (2,779) (1,026) (151) (642) 146 (3,805) 23 Accretion recognized on purchased loans (17,834) (558) (616) (1,089) (897) (18,392) (1,697)Amortization recognized on purchased time deposits 4,396 — — — — 4,396 — Amortization recognized on purchased long term borrowings 1,072 — — — — 1,072 — Adjustments to net interest income$(15,145)$(1,584)$(767)$(1,731)$(751) $(16,729)$(1,674)Adjusted net interest income (FTE) (non-GAAP)$207,572 $135,848 $134,735 $131,845 $126,847 $343,420 $251,774 Net interest margin (GAAP) 3.85% 3.45% 3.36% 3.36% 3.31% 3.68% 3.30%Adjusted net interest margin (non-GAAP) 3.58% 3.42% 3.34% 3.32% 3.29% 3.51% 3.28% Adjusted Loan Yield Loan interest income (FTE) (GAAP)$304,834 $199,504 $201,562 $204,935 $200,670 $504,338 $395,310 Net interest income collected on problem loans (2,779) (1,026) (151) (642) 146 (3,805) 23 Accretion recognized on purchased loans (17,834) (558) (616) (1,089) (897) (18,392) (1,697)Adjusted loan interest income (FTE) (non-GAAP)$284,221 $197,920 $200,795 $203,204 $199,919 $482,141 $393,636 Loan yield (GAAP) 6.63% 6.24% 6.29% 6.47% 6.41% 6.47% 6.35%Adjusted loan yield (non-GAAP) 6.18% 6.19% 6.27% 6.41% 6.38% 6.18% 6.32% (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. 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 Second Quarter of 2025

FAQ

Why Bearish?

How important is it?

Why Short Term?

Related Companies

Related News