Renasant Corporation Announces Earnings For the Fourth Quarter of 2024

Renasant Corporation

Tue, Jan 28, 2025, 2:30 PM 19 min read

(Dollars in thousands, except earnings per share)	Three Months Ended							Twelve Months Ended
	Dec 31, 2024		Sep 30, 2024		Dec 31, 2023			Dec 31, 2024		Dec 31, 2023
Net income and earnings per share:
Net income	$	44,747	$	72,455	$	28,124		$	195,457	$	144,678
After-tax gain on sale of insurance agency		—		38,951		—			38,951		—
After-tax loss on sale of securities (including impairments)		—		—		(17,859	)		—		(17,859	)
Basic EPS		0.70		1.18		0.50			3.29		2.58
Diluted EPS		0.70		1.18		0.50			3.27		2.56
Adjusted diluted EPS (Non-GAAP)⁽¹⁾		0.73		0.70		0.76			2.76		3.15
Impact to diluted EPS from after-tax gain on sale of insurance agency		—		0.63		—			0.65		—
Impact to diluted EPS from after-tax loss on sale of securities (including impairments)		—		—		—			—		(0.31	)

“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, respectively
Net interest income (fully tax equivalent) for the fourth quarter of 2024 was $135.5 million, up $1.9 million on a linked quarter basis
For the fourth quarter of 2024, net interest margin was 3.36%, which was unchanged on a linked quarter basis
Cost of total deposits was 2.35% for the fourth quarter of 2024, down 16 basis points on a linked quarter basis
Noninterest income decreased $55.1 million on a linked quarter basis. The Company recognized a $53.3 million pre-tax gain on the insurance agency sale during the third quarter. Excluding the impact of this gain, noninterest income decreased $1.7 million from the third quarter
Mortgage banking income decreased $1.6 million on a linked quarter basis. The mortgage division generated $482.3 million in interest rate lock volume in the fourth quarter of 2024, down $61.3 million on a linked quarter basis. Gain on sale margin was 2.01% for the fourth quarter of 2024, up 45 basis points on a linked quarter basis
Noninterest expense decreased $7.2 million on a linked quarter basis. Merger and conversion expenses were $2.1 million for the fourth quarter of 2024, down from $11.3 million for the prior quarter

Balance Sheet

Loans increased $257.4 million on a linked quarter basis, representing 8.1% annualized net loan growth
Securities increased $41.8 million on a linked quarter basis. The Company purchased $113.6 million in securities during the fourth quarter, which was offset by cash flows related to principal payments, calls and maturities of $48.5 million and a negative fair market value adjustment in the Company’s available-for-sale portfolio of $24.3 million
Deposits at December 31, 2024 increased $62.9 million on a linked quarter basis. Brokered deposits outstanding at September 30, 2024 of $126.8 million matured or were called during the quarter. There were no outstanding brokered deposits at December 31, 2024. Noninterest bearing deposits decreased $125.8 million on a linked quarter basis and represented 23.4% of total deposits at December 31, 2024

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 basis
The Company has a $100.0 million stock repurchase program in effect through October 2025 under which the Company is authorized to repurchase outstanding shares of its common stock either in open market purchases or privately-negotiated transactions. There was no buyback activity during the fourth quarter of 2024

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 2024
The ratio of the allowance for credit losses on loans to total loans was 1.57% at December 31, 2024, down two basis points on a linked quarter basis
The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 178.11% at December 31, 2024, compared to 168.07% at September 30, 2024
Net loan charge-offs for the fourth quarter of 2024 were $1.7 million, or 0.05% of average loans on an annualized basis
Nonperforming loans to total loans decreased to 0.88% at December 31, 2024 compared to 0.94% at September 30, 2024, and criticized loans (which include classified and Special Mention loans) to total loans decreased to 2.89% at December 31, 2024, compared to 3.02% at September 30, 2024

_{⁽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, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023		Dec 31, 2024			Dec 31, 2023
Interest income
Loans held for investment	$	199,240		$	202,655		$	198,397		$	192,390		$	188,535	$	792,682		$	704,649
Loans held for sale		3,564			4,212			3,530			2,308			3,329		13,614			11,807
Securities		10,510			10,304			10,410			10,700			10,728		41,924			50,488
Other		12,030			11,872			7,874			7,781			7,839		39,557			30,375
Total interest income		225,344			229,043			220,211			213,179			210,431		887,777			797,319
Interest expense
Deposits		85,571			90,787			87,621			82,613			77,168		346,592			232,331
Borrowings		6,891			7,258			7,564			7,276			7,310		28,989			45,661
Total interest expense		92,462			98,045			95,185			89,889			84,478		375,581			277,992
Net interest income		132,882			130,998			125,026			123,290			125,953		512,196			519,327
Provision for credit losses
Provision for loan losses		3,100			1,210			4,300			2,638			2,518		11,248			18,793
Recovery of unfunded commitments		(500	)		(275	)		(1,000	)		(200	)		—		(1,975	)		(3,200	)
Total provision for credit losses		2,600			935			3,300			2,438			2,518		9,273			15,593
Net interest income after provision for credit losses		130,282			130,063			121,726			120,852			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, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023
Return on average assets	0.99	%	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 equity	6.70		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 ratio	31.43		18.64		31.88		31.43		44.00		26.75		34.11

Capital and Balance Sheet Ratios

	As of
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
Shares 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

Noninterest Income and Noninterest Expense

(Dollars in thousands)	Three Months Ended											Twelve Months Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023			Dec 31, 2024		Dec 31, 2023
Noninterest 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, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023
Gain on sales of loans, net	$	2,379	$	4,499	$	5,199	$	4,535	$	1,860	$	16,612	$	14,573
Fees, net		2,850		2,646		2,866		1,854		2,010		10,216		9,051
Mortgage servicing income, net		1,632		1,302		1,633		4,981		2,722		9,548		8,789
Total 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, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
Assets
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, 2024						September 30, 2024						December 31, 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	$	12,746,941	$	201,562	6.29	%	$	12,584,104	$	204,935	6.47	%	$	12,249,429	$	190,857	6.18	%
Loans held for sale		250,812		3,564	5.69	%		272,110		4,212	6.19	%		199,510		3,329	6.68	%
Taxable securities		1,784,167		9,408	2.11	%		1,794,421		9,212	2.05	%		2,050,175		9,490	1.85	%
Tax-exempt securities⁽¹⁾		261,679		1,400	2.14	%		262,621		1,390	2.12	%		282,698		1,558	2.20	%
Total securities		2,045,846		10,808	2.11	%		2,057,042		10,602	2.06	%		2,332,873		11,048	1.89	%
Interest-bearing balances with banks		1,025,294		12,030	4.67	%		894,313		11,872	5.28	%		552,301		7,839	5.63	%
Total interest-earning assets		16,068,893		227,964	5.65	%		15,807,569		231,621	5.82	%		15,334,113		213,073	5.52	%
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	$	57,605	3.00	%	$	7,333,508	$	60,326	3.26	%	$	6,721,053	$	47,783	2.82	%
Savings deposits		804,132		706	0.35	%		815,545		729	0.36	%		888,692		765	0.34	%
Brokered deposits		60,298		1,013	6.68	%		150,991		1,998	5.25	%		632,704		8,594	5.39	%
Time deposits		2,512,097		26,247	4.16	%		2,546,860		27,734	4.33	%		2,185,737		20,026	3.63	%
Total interest-bearing deposits		11,006,212		85,571	3.09	%		10,846,904		90,787	3.32	%		10,428,186		77,168	2.94	%
Borrowed funds		556,966		6,891	4.94	%		562,146		7,258	5.14	%		564,715		7,310	5.16	%
Total interest-bearing liabilities		11,563,178		92,462	3.18	%		11,409,050		98,045	3.41	%		10,992,901		84,478	3.05	%
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			$	135,502	3.36	%			$	133,576	3.36	%			$	128,595	3.33	%
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, 2024						December 31, 2023
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-earning assets:
Loans held for investment	$	12,579,143	$	801,807	6.37	%	$	11,963,141	$	713,897	5.97	%
Loans held for sale		224,734		13,614	6.06	%		181,253		11,807	6.51	%
Taxable securities⁽¹⁾		1,825,404		37,383	2.05	%		2,313,874		44,619	1.93	%
Tax-exempt securities		264,615		5,746	2.17	%		332,749		7,634	2.29	%
Total securities		2,090,019		43,129	2.06	%		2,646,623		52,253	1.97	%
Interest-bearing balances with banks		772,274		39,557	5.12	%		568,155		30,375	5.35	%
Total interest-earning assets		15,666,170		898,107	5.73	%		15,359,172		808,332	5.26	%
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	$	226,563	3.12	%	$	6,357,753	$	138,730	2.18	%
Savings deposits		829,818		2,894	0.35	%		971,522		3,197	0.33	%
Brokered deposits		237,164		12,942	5.46	%		697,699		36,039	5.17	%
Time deposits		2,466,906		104,193	4.22	%		1,874,224		54,365	2.90	%
Total interest-bearing deposits		10,788,534		346,592	3.21	%		9,901,198		232,331	2.35	%
Borrowed funds		566,332		28,989	5.12	%		910,080		45,661	5.02	%
Total interest-bearing liabilities		11,354,866		375,581	3.31	%		10,811,278		277,992	2.57	%
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			$	522,526	3.34	%			$	530,340	3.45	%
Cost of funding					2.53	%					1.88	%
Cost of total deposits					2.42	%					1.67	%

Supplemental Margin Information

(Dollars in thousands)	Three Months Ended									Twelve Months Ended
	Dec 31, 2024			Sep 30, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Earning 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, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023
Loan Portfolio:
Commercial, financial, agricultural	$	1,885,817	$	1,804,961	$	1,847,762	$	1,869,408	$	1,871,821
Lease financing		90,591		98,159		102,996		107,474		116,020
Real estate - construction		1,093,653		1,198,838		1,355,425		1,243,535		1,333,397
Real estate - 1-4 family mortgages		3,488,877		3,440,038		3,435,818		3,429,286		3,439,919
Real estate - commercial mortgages		6,236,068		5,995,152		5,766,478		5,753,230		5,486,550
Installment loans to individuals		90,014		90,500		96,276		97,592		103,523
Total 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, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
Nonperforming 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, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Adjusted 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

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