Press Release Details

Renasant Corporation Announces Earnings For the Second Quarter of 2024

July 23, 2024
PDF Version

TUPELO, Miss., July 23, 2024 (GLOBE NEWSWIRE) -- Renasant Corporation (NYSE: RNST) (the “Company”) today announced earnings results for the second quarter of 2024.

(Dollars in thousands, except earnings per share)Three Months Ended Six Months Ended
 Jun 30, 2024Mar 31, 2024Jun 30, 2023 Jun 30, 2024Jun 30, 2023
Net income and earnings per share:               
Net income$38,846 $39,409 $28,643  $78,255 $74,721 
After-tax loss on sale of securities —  —  (18,085)  —  (17,870)
Basic EPS 0.69  0.70  0.51   1.39  1.33 
Diluted EPS 0.69  0.70  0.51   1.38  1.33 
Adjusted diluted EPS (Non-GAAP)(1) 0.69  0.65  0.83   1.33  1.64 
Impact to diluted EPS from after-tax loss on sale of securities (including impairments) —  —  0.32   —  0.31 
                 

“The financial results for the quarter reflect good performance and improved balance sheet strength,” remarked C. Mitchell Waycaster, Chief Executive Officer of the Company. “As we build capital, it enhances our ability to grow the company and build upon these results.”

Quarterly Highlights

Earnings

  • Net income for the second quarter of 2024 was $38.8 million; diluted EPS and adjusted diluted EPS (non-GAAP)(1) were each $0.69
  • Net interest income (fully tax equivalent) for the second quarter of 2024 was $127.6 million, up $1.7 million on a linked quarter basis
  • For the second quarter of 2024, net interest margin was 3.31%, up 1 basis point on a linked quarter basis
  • Cost of total deposits was 2.47% for the second quarter of 2024, up 12 basis points on a linked quarter basis
  • Noninterest income decreased $2.6 million on a linked quarter basis primarily due to a decrease in mortgage banking income. During the first quarter of 2024, the Company sold a portion of its mortgage servicing rights (“MSR”), recognizing a gain of $3.5 million with no such sale in the second quarter of 2024
  • Mortgage banking income decreased $1.7 million on a linked quarter basis. Excluding the gain recognized in the first quarter on the sale of a portion of Renasant's MSR, mortgage banking income increased $1.8 million on a linked quarter basis. The mortgage division generated $0.6 billion in interest rate lock volume in the second quarter of 2024, an increase of $0.2 billion on a linked quarter basis. Gain on sale margin was 1.69% for the second quarter of 2024, down 9 basis points on a linked quarter basis.
  • Noninterest expense decreased $0.9 million on a linked quarter basis. Excluding the effect of certain charitable contributions and FDIC special assessment expense incurred in the first quarter, noninterest expense increased approximately $0.8 million on a linked quarter basis. Seasonality in our mortgage division resulted in higher levels of expense driven from increased volumes. These expenses were slightly offset by savings in other areas

Balance Sheet

  • Loans increased $104.2 million on a linked quarter basis, representing 3.4% annualized net loan growth
  • Securities decreased $39.2 million on a linked quarter basis due to net cash outflows during the quarter of $43.1 million and a positive fair market value adjustment in our available-for-sale portfolio of $3.9 million
  • Deposits at June 30, 2024 increased $18.1 million on a linked quarter basis. Brokered deposits decreased $183.7 million on a linked quarter basis to $158.6 million at June 30, 2024. Noninterest bearing deposits increased $23.3 million on a linked quarter basis and represented 24.8% of total deposits at June 30, 2024

Capital and Liquidity

  • Book value per share and tangible book value per share (non-GAAP)(1) increased 1.3% and 2.4%, respectively, on a linked quarter basis
  • The Company has a $100 million stock repurchase program that is in effect through October 2024; there was no buyback activity during the second quarter of 2024

Credit Quality

  • The Company recorded a provision for credit losses of $3.3 million for the second quarter of 2024, compared to $2.4 million for the first quarter of 2024
  • The ratio of allowance for credit losses on loans to total loans was 1.59% at June 30, 2024 compared to 1.61% at March 31, 2024
  • The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 203.88% at June 30, 2024, compared to 270.87% at March 31, 2024
  • Net loan charge-offs for the second quarter of 2024 were $5.5 million, or 0.18% of average loans on an annualized basis
  • Nonperforming loans to total loans increased to 0.78% at June 30, 2024 compared to 0.59% at March 31, 2024, and criticized loans (which include classified and special mention loans) to total loans decreased to 2.62% at June 30, 2024, compared to 2.76% at March 31, 2024

Sale of Renasant Insurance

  • Effective July 1, 2024, Renasant sold the assets of its insurance agency for cash proceeds to Renasant Bank of $56.4 million, recognizing an estimated after-tax impact to earnings of $36.4 million, which is net of estimated merger-related expenses. The financial effects of the sale will be reflected in the third quarter of 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 Six Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023 Jun 30, 2024Jun 30, 2023
Interest income        
Loans held for investment$198,397 $192,390 $188,535$181,129 $173,198  $390,787 $334,985 
Loans held for sale 3,530  2,308  3,329 3,751  2,990   5,838  4,727 
Securities 10,410  10,700  10,728 10,669  14,000   21,110  29,091 
Other 7,874  7,781  7,839 10,128  6,978   15,655  12,408 
Total interest income 220,211  213,179  210,431 205,677  197,166   433,390  381,211 
Interest expense        
Deposits 87,621  82,613  77,168 70,906  51,391   170,234  84,257 
Borrowings 7,564  7,276  7,310 7,388  15,559   14,840  30,963 
Total interest expense 95,185  89,889  84,478 78,294  66,950   185,074  115,220 
Net interest income 125,026  123,290  125,953 127,383  130,216   248,316  265,991 
Provision for credit losses        
Provision for loan losses 4,300  2,638  2,518 5,315  3,000   6,938  10,960 
Recovery of unfunded commitments (1,000) (200) — (700) (1,000)  (1,200) (2,500)
Total provision for credit losses 3,300  2,438  2,518 4,615  2,000   5,738  8,460 
Net interest income after provision for credit losses 121,726  120,852  123,435 122,768  128,216   242,578  257,531 
Noninterest income 38,762  41,381  20,356 38,200  17,226   80,143  54,519 
Noninterest expense 111,976  112,912  111,880 108,369  110,165   224,888  219,373 
Income before income taxes 48,512  49,321  31,911 52,599  35,277   97,833  92,677 
Income taxes 9,666  9,912  3,787 10,766  6,634   19,578  17,956 
Net income$38,846 $39,409 $28,124$41,833 $28,643  $78,255 $74,721 
         
Adjusted net income (non-GAAP)(1)$38,846 $36,572 $42,887$41,833 $46,728  $75,421 $92,591 
Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1)$51,812 $48,231 $52,614$57,214 $59,715  $100,043 $123,575 
         
Basic earnings per share$0.69 $0.70 $0.50$0.75 $0.51  $1.39 $1.33 
Diluted earnings per share 0.69  0.70  0.50 0.74  0.51   1.38  1.33 
Adjusted diluted earnings per share (non-GAAP)(1) 0.69  0.65  0.76 0.74  0.83   1.33  1.64 
Average basic shares outstanding 56,342,909  56,208,348  56,141,628 56,138,618  56,107,881   56,275,628  56,058,585 
Average diluted shares outstanding 56,684,626  56,531,078  56,611,217 56,523,887  56,395,653   56,607,947  56,330,295 
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, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023 Jun 30, 2024Jun 30, 2023
Return on average assets0.90%0.92%0.65%0.96%0.66% 0.91%0.87%
Adjusted return on average assets (non-GAAP)(1)0.90 0.86 0.99 0.96 1.08  0.88 1.08 
Return on average tangible assets (non-GAAP)(1)0.98 1.00 0.71 1.05 0.73  0.99 0.96 
Adjusted return on average tangible assets (non-GAAP)(1)0.98 0.93 1.08 1.05 1.18  0.96 1.18 
Return on average equity6.68 6.85 4.93 7.44 5.18  6.77 6.84 
Adjusted return on average equity (non-GAAP)(1)6.68 6.36 7.53 7.44 8.45  6.52 8.48 
Return on average tangible equity (non-GAAP)(1)12.04 12.45 9.26 13.95 9.91  12.25 13.04 
Adjusted return on average tangible equity (non-GAAP)(1)12.04 11.58 13.94 13.95 15.94  11.81 16.07 
Efficiency ratio (fully taxable equivalent)67.31 67.52 75.11 64.38 73.29  67.41 67.26 
Adjusted efficiency ratio (non-GAAP)(1)66.60 68.23 66.18 63.60 62.98  67.41 62.13 
Dividend payout ratio31.88 31.43 44.00 29.33 43.14  31.65 33.08 
                

Capital and Balance Sheet Ratios

 As of
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023
Shares outstanding 56,367,924  56,304,860  56,142,207  56,140,713  56,132,478 
Market value per share$30.54 $31.32 $33.68 $26.19 $26.13 
Book value per share 41.77  41.25  40.92  39.78  39.35 
Tangible book value per share (non-GAAP)(1) 23.89  23.32  22.92  21.76  21.30 
Shareholders’ equity to assets 13.45% 13.39% 13.23% 13.00% 12.82%
Tangible common equity ratio (non-GAAP)(1) 8.16  8.04  7.87  7.55  7.37 
Leverage ratio 9.81  9.75  9.62  9.48  9.22 
Common equity tier 1 capital ratio 10.75  10.59  10.52  10.46  10.30 
Tier 1 risk-based capital ratio 11.53  11.37  11.30  11.25  11.09 
Total risk-based capital ratio 15.15  15.00  14.93  14.91  14.76 
                

(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 Six Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023 Jun 30, 2024Jun 30, 2023
Noninterest income        
Service charges on deposit accounts$10,286$10,506$10,603 $9,743 $9,733  $20,792$18,853 
Fees and commissions 3,944 3,949 4,130  4,108  4,987   7,893 9,663 
Insurance commissions 2,758 2,716 2,583  3,264  2,809   5,474 5,255 
Wealth management revenue 5,684 5,669 5,668  5,986  5,338   11,353 10,478 
Mortgage banking income 9,698 11,370 6,592  7,533  9,771   21,068 18,288 
Net losses on sales of securities (including impairments) — — (19,352) —  (22,438)  — (22,438)
Gain on extinguishment of debt — 56 620  —  —   56 — 
BOLI income 2,701 2,691 2,589  2,469  2,402   5,392 5,405 
Other 3,691 4,424 6,923  5,097  4,624   8,115 9,015 
Total noninterest income$38,762$41,381$20,356 $38,200 $17,226  $80,143$54,519 
Noninterest expense        
Salaries and employee benefits$70,731$71,470$71,841 $69,458 $70,637  $142,201$140,469 
Data processing 3,945 3,807 3,971  3,907  3,684   7,752 7,317 
Net occupancy and equipment 11,844 11,389 11,653  11,548  11,865   23,233 23,270 
Other real estate owned 105 107 306  (120) 51   212 81 
Professional fees 3,195 3,348 2,854  3,338  4,012   6,543 7,479 
Advertising and public relations 3,807 4,886 3,084  3,474  3,482   8,693 8,168 
Intangible amortization 1,186 1,212 1,274  1,311  1,369   2,398 2,795 
Communications 2,112 2,024 2,026  2,006  2,226   4,136 4,206 
Other 15,051 14,669 14,871  13,447  12,839   29,720 25,588 
Total noninterest expense$111,976$112,912$111,880 $108,369 $110,165  $224,888$219,373 
                    

Mortgage Banking Income

(Dollars in thousands)Three Months Ended Six Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023 Jun 30, 2024Jun 30, 2023
Gain on sales of loans, net$5,199$4,535$1,860$3,297$4,646 $9,734$9,416
Fees, net 2,866 1,854 2,010 2,376 2,859  4,720 4,665
Mortgage servicing income, net 1,633 4,981 2,722 1,860 2,266  6,614 4,207
Total mortgage banking income$9,698$11,370$6,592$7,533$9,771 $21,068$18,288
                

Balance Sheet

(Dollars in thousands)As of
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023
Assets     
Cash and cash equivalents$851,906 $844,400 $801,351 $741,156 $946,899 
Securities held to maturity, at amortized cost 1,174,663  1,199,111  1,221,464  1,245,595  1,273,044 
Securities available for sale, at fair value 749,685  764,486  923,279  909,108  950,930 
Loans held for sale, at fair value 266,406  191,440  179,756  241,613  249,615 
Loans held for investment 12,604,755  12,500,525  12,351,230  12,168,023  11,930,516 
Allowance for credit losses on loans (199,871) (201,052) (198,578) (197,773) (194,391)
Loans, net 12,404,884  12,299,473  12,152,652  11,970,250  11,736,125 
Premises and equipment, net 280,966  282,193  283,195  284,368  285,952 
Other real estate owned 7,366  9,142  9,622  9,258  5,120 
Goodwill and other intangibles 1,008,062  1,009,248  1,010,460  1,011,735  1,013,046 
Bank-owned life insurance 387,791  385,186  382,584  379,945  377,649 
Mortgage servicing rights 72,092  71,596  91,688  90,241  87,432 
Other assets 306,570  289,466  304,484  298,352  298,530 
Total assets$17,510,391 $17,345,741 $17,360,535 $17,181,621 $17,224,342 
      
Liabilities and Shareholders’ Equity     
Liabilities     
Deposits:     
Noninterest-bearing$3,539,453 $3,516,164 $3,583,675 $3,734,197 $3,878,953 
Interest-bearing 10,715,760  10,720,999  10,493,110  10,422,913  10,216,408 
Total deposits 14,255,213  14,237,163  14,076,785  14,157,110  14,095,361 
Short-term borrowings 232,741  108,121  307,577  107,662  257,305 
Long-term debt 428,677  428,047  429,400  427,399  429,630 
Other liabilities 239,059  250,060  249,390  256,127  233,418 
Total liabilities 15,155,690  15,023,391  15,063,152  14,948,298  15,015,714 
      
Shareholders’ equity:     
Common stock 296,483  296,483  296,483  296,483  296,483 
Treasury stock (97,534) (99,683) (105,249) (105,300) (105,589)
Additional paid-in capital 1,304,782  1,303,613  1,308,281  1,304,891  1,301,883 
Retained earnings 1,005,086  978,880  952,124  936,573  907,312 
Accumulated other comprehensive loss (154,116) (156,943) (154,256) (199,324) (191,461)
Total shareholders’ equity 2,354,701  2,322,350  2,297,383  2,233,323  2,208,628 
Total liabilities and shareholders’ equity$17,510,391 $17,345,741 $17,360,535 $17,181,621 $17,224,342 
                

Net Interest Income and Net Interest Margin

(Dollars in thousands)Three Months Ended
 June 30, 2024March 31, 2024June 30, 2023
 Average
Balance		Interest
Income/
Expense		Yield/  
 Rate		Average
Balance		Interest
Income/
Expense		Yield/  
 Rate		Average
Balance		Interest
Income/
Expense		Yield/  
 Rate
Interest-earning assets:         
Loans held for investment$12,575,651$200,6706.41%$12,407,976$194,6406.30%$11,877,592$175,5495.93%
Loans held for sale 219,826 3,5306.42% 155,382 2,3085.94% 192,539 2,9906.21%
Taxable securities 1,832,002 9,2582.02% 1,891,817 9,5052.01% 2,481,712 12,3531.99%
Tax-exempt securities(1) 263,937 1,4512.20% 270,279 1,5052.23% 367,410 2,1652.36%
Total securities 2,095,939 10,7092.04% 2,162,096 11,0102.04% 2,849,122 14,5182.04%
Interest-bearing balances with banks 595,030 7,8745.32% 570,336 7,7815.49% 524,307 6,9785.34%
Total interest-earning assets 15,486,446 222,7835.77% 15,295,790 215,7395.66% 15,443,560 200,0355.19%
Cash and due from banks 187,519   188,503   189,668  
Intangible assets 1,008,638   1,009,825   1,013,811  
Other assets 688,766   708,895   690,885  
Total assets$17,371,369  $17,203,013  $17,337,924  
Interest-bearing liabilities:         
Interest-bearing demand(2)$7,094,411$56,1323.17%$6,955,989$52,5003.03%$6,114,067$29,1851.91%
Savings deposits 839,638 7290.35% 860,397 7300.34% 1,004,096 8130.32%
Brokered deposits 294,650 3,9445.37% 445,608 5,9875.39% 809,613 10,2955.10%
Time deposits 2,487,873 26,8164.34% 2,319,420 23,3964.06% 1,735,567 11,0982.57%
Total interest-bearing deposits 10,716,572 87,6213.28% 10,581,414 82,6133.13% 9,663,343 51,3912.13%
Borrowed funds 564,672 7,5645.37% 544,564 7,2765.35% 1,204,968 15,5595.18%
Total interest-bearing liabilities 11,281,244 95,1853.39% 11,125,978 89,8893.24% 10,868,311 66,9502.47%
Noninterest-bearing deposits 3,509,109   3,518,612   4,039,087  
Other liabilities 243,285   244,142   212,818  
Shareholders’ equity 2,337,731   2,314,281   2,217,708  
Total liabilities and shareholders’ equity$17,371,369  $17,203,013  $17,337,924  
Net interest income/ net interest margin $127,5983.31% $125,8503.30% $133,0853.45%
Cost of funding  2.58%  2.46%  1.80%
Cost of total deposits  2.47%  2.35%  1.50%
             

(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)Six Months Ended
 June 30, 2024June 30, 2023
 Average
Balance		Interest
Income/
Expense		Yield/  
 Rate		Average
Balance		Interest
Income/
Expense		Yield/  
 Rate
Interest-earning assets:      
Loans held for investment$12,491,814$395,3106.35%$11,783,585$339,5195.81%
Loans held for sale 187,604 5,8386.22% 148,221 4,7276.38%
Taxable securities(1) 1,861,909 18,7632.02% 2,557,997 25,6702.01%
Tax-exempt securities 267,108 2,9562.21% 382,130 4,5102.36%
Total securities 2,129,017 21,7192.04% 2,940,127 30,1802.05%
Interest-bearing balances with banks 582,683 15,6555.40% 494,434 12,4085.06%
Total interest-earning assets 15,391,118 438,5225.72% 15,366,367 386,8345.07%
Cash and due from banks 188,011   193,703  
Intangible assets 1,009,232   1,012,690  
Other assets 701,770   675,648  
Total assets$17,290,131  $17,248,408  
Interest-bearing liabilities:      
Interest-bearing demand(2)$7,025,200$108,6323.10%$6,090,549$49,4831.64%
Savings deposits 850,018 1,4590.34% 1,028,315 1,6390.32%
Brokered deposits 370,129 9,9315.38% 603,822 14,7134.91%
Time deposits 2,403,646 50,2124.20% 1,650,683 18,4222.25%
Total interest-bearing deposits 10,648,993 170,2343.21% 9,373,369 84,2571.81%
Borrowed funds 554,618 14,8405.36% 1,243,049 30,9635.01%
Total interest-bearing liabilities 11,203,611 185,0743.32% 10,616,418 115,2202.19%
Noninterest-bearing deposits 3,513,860   4,212,081  
Other liabilities 246,654   217,573  
Shareholders’ equity 2,326,006   2,202,336  
Total liabilities and shareholders’ equity$17,290,131  $17,248,408  
Net interest income/ net interest margin $253,4483.30% $271,6143.56%
Cost of funding  2.52%  1.57%
Cost of total deposits  2.41%  1.25%
         

(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 Six Months Ended
 Jun 30, 2024Mar 31, 2024Jun 30, 2023 Jun 30, 2024Jun 30, 2023
Earning asset mix:      
Loans held for investment 81.20% 81.12% 76.91%  81.16% 76.68%
Loans held for sale 1.42  1.02  1.25   1.22  0.96 
Securities 13.53  14.14  18.45   13.83  19.13 
Interest-bearing balances with banks 3.85  3.72  3.39   3.79  3.23 
Total 100.00% 100.00% 100.00%  100.00% 100.00%
       
Funding sources mix:      
Noninterest-bearing demand 23.73% 24.03% 27.09%  23.88% 28.41%
Interest-bearing demand 47.97  47.50  41.01   47.73  41.07 
Savings 5.68  5.88  6.74   5.78  6.93 
Brokered deposits 1.99  3.04  5.43   2.51  4.07 
Time deposits 16.82  15.84  11.64   16.33  11.13 
Borrowed funds 3.81  3.71  8.09   3.77  8.39 
Total 100.00% 100.00% 100.00%  100.00% 100.00%
       
Net interest income collected on problem loans$(146)$123 $364  $(23)$756 
Total accretion on purchased loans 897  800  874   1,697  1,759 
Total impact on net interest income$751 $923 $1,238  $1,674 $2,515 
Impact on net interest margin 0.02% 0.02% 0.03%  0.02% 0.03%
Impact on loan yield 0.02  0.03  0.04   0.03% 0.04%
                 

Loan Portfolio

(Dollars in thousands)As of
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023
Loan Portfolio:     
Commercial, financial, agricultural$1,847,762$1,869,408$1,871,821$1,819,891$1,729,070
Lease financing 102,996 107,474 116,020 120,724 122,370
Real estate - construction 1,355,425 1,243,535 1,333,397 1,407,364 1,369,019
Real estate - 1-4 family mortgages 3,435,818 3,429,286 3,439,919 3,398,876 3,348,654
Real estate - commercial mortgages 5,766,478 5,753,230 5,486,550 5,313,166 5,252,479
Installment loans to individuals 96,276 97,592 103,523 108,002 108,924
Total loans$12,604,755$12,500,525$12,351,230$12,168,023$11,930,516
           

Credit Quality and Allowance for Credit Losses on Loans

(Dollars in thousands)As of
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023
Nonperforming Assets:     
Nonaccruing loans$97,795 $73,774 $68,816 $69,541 $55,439 
Loans 90 days or more past due 240  451  554  532  36,321 
Total nonperforming loans 98,035  74,225  69,370  70,073  91,760 
Other real estate owned 7,366  9,142  9,622  9,258  5,120 
Total nonperforming assets$105,401 $83,367 $78,992 $79,331 $96,880 
      
Criticized Loans     
Classified loans$191,595 $206,502 $166,893 $186,052 $219,674 
Special Mention loans 138,343  138,366  99,699  89,858  56,616 
Criticized loans(1)$329,938 $344,868 $266,592 $275,910 $276,290 
      
Allowance for credit losses on loans$199,871 $201,052 $198,578 $197,773 $194,391 
Net loan charge-offs$5,481 $164 $1,713 $1,933 $3,901 
Annualized net loan charge-offs / average loans 0.18% 0.01% 0.06% 0.06% 0.13%
Nonperforming loans / total loans 0.78  0.59  0.56  0.58  0.77 
Nonperforming assets / total assets 0.60  0.48  0.46  0.46  0.56 
Allowance for credit losses on loans / total loans 1.59  1.61  1.61  1.63  1.63 
Allowance for credit losses on loans / nonperforming loans 203.88  270.87  286.26  282.24  211.85 
Criticized loans / total loans 2.62  2.76  2.16  2.27  2.32 
                

(1) Criticized loans include loans in risk rating classifications of classified and special mention.

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 24, 2024.

The webcast is accessible through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=4YF7gjk4. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2024 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 8556122 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 7, 2024.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 120-year-old financial services institution. Renasant has assets of approximately $17.5 billion and operates 185 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 our actual results to differ materially from those in forward-looking statements include the following: (i) the Company’s ability to efficiently integrate acquisitions 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; (ii) the effect of economic conditions and interest rates on a national, regional or international basis; (iii) timing and success of the implementation of changes in operations to achieve enhanced earnings or effect cost savings; (iv) competitive pressures in the consumer finance, commercial finance, financial services, asset management, retail banking, factoring and mortgage lending and auto lending industries; (v) the financial resources of, and products available from, competitors; (vi) changes in laws and regulations as well as changes in accounting standards; (vii) changes in policy by regulatory agencies; (viii) changes in the securities and foreign exchange markets; (ix) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (x) 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 our investment securities portfolio; (xi) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xii) changes in the sources and costs of the capital we use to make loans and otherwise fund our operations, due to deposit outflows, changes in the mix of deposits and the cost and availability of borrowings; (xiii) general economic, market or business conditions, including the impact of inflation; (xiv) changes in demand for loan products and financial services; (xv) concentration of deposit and credit exposure; (xvi) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xvii) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xviii) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area; (xix) the impact, extent and timing of technological changes; and (xx) 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) certain performance ratios (namely, the ratio of pre-provision net revenue to average assets, the return on average assets and on average equity, 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 (although, for the second quarter of 2024, there were no excluded gains or charges), 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, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023 Jun 30, 2024Jun 30, 2023
Adjusted Pre-Provision Net Revenue (“PPNR”)      
Net income (GAAP)$38,846 $39,409 $28,124 $41,833 $28,643  $78,255 $74,721 
Income taxes 9,666  9,912  3,787  10,766  6,634   19,578  17,956 
Provision for credit losses (including unfunded commitments) 3,300  2,438  2,518  4,615  2,000   5,738  8,460 
Pre-provision net revenue (non-GAAP)$51,812 $51,759 $34,429 $57,214 $37,277  $103,571 $101,137 
Gain on extinguishment of debt —  (56) (620) —  —   (56) — 
Gain on sales of MSR —  (3,472) (547) —  —   (3,472) — 
Losses on sales of securities (including impairments) —  —  19,352  —  22,438   —  22,438 
Adjusted pre-provision net revenue (non-GAAP)$51,812 $48,231 $52,614 $57,214 $59,715  $100,043 $123,575 
         
Adjusted Net Income and Adjusted Tangible Net Income      
Net income (GAAP)$38,846 $39,409 $28,124 $41,833 $28,643  $78,255 $74,721 
Amortization of intangibles 1,186  1,212  1,274  1,311  1,369   2,398  2,795 
Tax effect of adjustments noted above(1) (233) (237) (240) (269) (266)  (472) (569)
Tangible net income (non-GAAP)$39,799 $40,384 $29,158 $42,875 $29,746  $80,181 $76,947 
         
Net income (GAAP)$38,846 $39,409 $28,124 $41,833 $28,643  $78,255 $74,721 
Gain on extinguishment of debt —  (56) (620) —  —   (56) — 
Gain on sales of MSR —  (3,472) (547) —  —   (3,472) — 
Losses on sales of securities (including impairments) —  —  19,352  —  22,438   —  22,438 
Tax effect of adjustments noted above(1) —  691  (3,422) —  (4,353)  694  (4,568)
Adjusted net income (non-GAAP)$38,846 $36,572 $42,887 $41,833 $46,728  $75,421 $92,591 
Amortization of intangibles 1,186  1,212  1,274  1,311  1,369   2,398  2,795 
Tax effect of adjustments noted above(1) (233) (237) (240) (269) (266)  (472) (569)
Adjusted tangible net income (non-GAAP)$39,799 $37,547 $43,921 $42,875 $47,831  $77,347 $94,817 
Tangible Assets and Tangible Shareholders’ Equity      
Average shareholders’ equity (GAAP)$2,337,731 $2,314,281 $2,261,025 $2,231,605 $2,217,708  $2,326,006 $2,202,336 
Average intangible assets 1,008,638  1,009,825  1,011,130  1,012,460  1,013,811   1,009,232  1,012,690 
Average tangible shareholders’ equity (non-GAAP)$1,329,093 $1,304,456 $1,249,895 $1,219,145 $1,203,897  $1,316,774 $1,189,646 
         
Average assets (GAAP)$17,371,369 $17,203,013 $17,195,840 $17,235,413 $17,337,924  $17,290,131 $17,248,408 
Average intangible assets 1,008,638  1,009,825  1,011,130  1,012,460  1,013,811   1,009,232  1,012,690 
Average tangible assets (non-GAAP)$16,362,731 $16,193,188 $16,184,710 $16,222,953 $16,324,113  $16,280,899 $16,235,718 
         
Shareholders’ equity (GAAP)$2,354,701 $2,322,350 $2,297,383 $2,233,323 $2,208,628  $2,354,701 $2,208,628 
Intangible assets 1,008,062  1,009,248  1,010,460  1,011,735  1,013,046   1,008,062  1,013,046 
Tangible shareholders’ equity (non-GAAP)$1,346,639 $1,313,102 $1,286,923 $1,221,588 $1,195,582  $1,346,639 $1,195,582 
         
Total assets (GAAP)$17,510,391 $17,345,741 $17,360,535 $17,181,621 $17,224,342  $17,510,391 $17,224,342 
Intangible assets 1,008,062  1,009,248  1,010,460  1,011,735  1,013,046   1,008,062  1,013,046 
Total tangible assets (non-GAAP)$16,502,329 $16,336,493 $16,350,075 $16,169,886 $16,211,296  $16,502,329 $16,211,296 
         
Adjusted Performance Ratios        
Return on average assets (GAAP) 0.90% 0.92% 0.65% 0.96% 0.66%  0.91% 0.87%
Adjusted return on average assets (non-GAAP) 0.90  0.86  0.99  0.96  1.08   0.88  1.08 
Return on average tangible assets (non-GAAP) 0.98  1.00  0.71  1.05  0.73   0.99  0.96 
Pre-provision net revenue to average assets (non-GAAP) 1.20  1.21  0.79  1.32  0.86   1.20  1.18 
Adjusted pre-provision net revenue to average assets (non-GAAP) 1.20  1.13  1.21  1.32  1.38   1.16  1.44 
Adjusted return on average tangible assets (non-GAAP) 0.98  0.93  1.08  1.05  1.18   0.96  1.18 
Return on average equity (GAAP) 6.68  6.85  4.93  7.44  5.18   6.77  6.84 
Adjusted return on average equity (non-GAAP) 6.68  6.36  7.53  7.44  8.45   6.52  8.48 
Return on average tangible equity (non-GAAP) 12.04  12.45  9.26  13.95  9.91   12.25  13.04 
Adjusted return on average tangible equity (non-GAAP) 12.04  11.58  13.94  13.95  15.94   11.81  16.07 
         
Adjusted Diluted Earnings Per Share      
Average diluted shares outstanding 56,684,626  56,531,078  56,611,217  56,523,887  56,395,653   56,607,947  56,330,295 
         
Diluted earnings per share (GAAP)$0.69 $0.70 $0.50 $0.74 $0.51  $1.38 $1.33 
Adjusted diluted earnings per share (non-GAAP)$0.69 $0.65 $0.76 $0.74 $0.83  $1.33 $1.64 
         
Tangible Book Value Per Share        
Shares outstanding 56,367,924  56,304,860  56,142,207  56,140,713  56,132,478   56,367,924  56,132,478 
         
Book value per share (GAAP)$41.77 $41.25 $40.92 $39.78 $39.35  $41.77 $39.35 
Tangible book value per share (non-GAAP)$23.89 $23.32 $22.92 $21.76 $21.30  $23.89 $21.30 
         
Tangible Common Equity Ratio        
Shareholders’ equity to assets (GAAP) 13.45% 13.39% 13.23% 13.00% 12.82%  13.45% 12.82%
Tangible common equity ratio (non-GAAP) 8.16% 8.04% 7.87% 7.55% 7.37%  8.16% 7.37%
Adjusted Efficiency Ratio        
Net interest income (FTE) (GAAP)$127,598 $125,850 $128,595 $130,131 $133,085  $253,448 $271,614 
         
Total noninterest income (GAAP)$38,762 $41,381 $20,356 $38,200 $17,226  $80,143 $54,519 
Gain on sales of MSR —  3,472  547  —  —   3,472  — 
Gain on extinguishment of debt —  56  620  —  —   56  — 
Losses on sales of securities (including impairments) —  —  (19,352) —  (22,438)  —  (22,438)
Total adjusted noninterest income (non-GAAP)$38,762 $37,853 $38,541 $38,200 $39,664  $76,615 $76,957 
         
Noninterest expense (GAAP)$111,976 $112,912 $111,880 $108,369 $110,165  $224,888 $219,373 
Amortization of intangibles 1,186  1,212  1,274  1,311  1,369   2,398  2,795 
Total adjusted noninterest expense (non-GAAP)$110,790 $111,700 $110,606 $107,058 $108,796  $222,490 $216,578 
         
Efficiency ratio (GAAP) 67.31% 67.52% 75.11% 64.38% 73.29%  67.41% 67.26%
Adjusted efficiency ratio (non-GAAP) 66.60% 68.23% 66.18% 63.60% 62.98%  67.41% 62.13%
         
Adjusted Net Interest Income and Adjusted Net Interest Margin      
Net interest income (FTE) (GAAP)$127,598 $125,850 $128,595 $130,131 $133,085  $253,448 $271,614 
Net interest income collected on problem loans (146) 123  283  (820) 364   (23) 756 
Accretion recognized on purchased loans 897  800  1,117  1,290  874   1,697  1,759 
Adjustments to net interest income$751 $923 $1,400 $470 $1,238  $1,674 $2,515 
Adjusted net interest income (FTE) (non-GAAP)$126,847 $124,927 $127,195 $129,661 $131,847  $251,774 $269,099 
         
Net interest margin (GAAP) 3.31% 3.30% 3.33% 3.36% 3.45%  3.30% 3.56%
Adjusted net interest margin (non-GAAP) 3.29% 3.28% 3.29% 3.35% 3.43%  3.28% 3.52%
         
Adjusted Loan Yield        
Loan interest income (FTE) (GAAP)$200,670 $194,640 $190,857 $183,521 $175,549  $395,310 $339,519 
Net interest income collected on problem loans (146) 123  283  (820) 364   (23) 756 
Accretion recognized on purchased loans 897  800  1,117  1,290  874   1,697  1,759 
Adjusted loan interest income (FTE) (non-GAAP)$199,919 $193,717 $189,457 $183,051 $174,311  $393,636 $337,004 
         
Loan yield (GAAP) 6.41% 6.30% 6.18% 6.06% 5.93%  6.35% 5.81%
Adjusted loan yield (non-GAAP) 6.38% 6.27% 6.14% 6.04% 5.89%  6.32% 5.76%
                       

(1) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.


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

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