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, 2024 |
Mar 31, 2024 |
Jun 30, 2023 |
|
Jun 30, 2024 |
Jun 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, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
|
Jun 30, 2024 |
Jun 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, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
|
Jun 30, 2024 |
Jun 30, 2023 |
|
Return on average assets |
0.90 |
% |
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 equity |
6.68 |
|
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 ratio |
31.88 |
|
31.43 |
|
44.00 |
|
29.33 |
|
43.14 |
|
|
31.65 |
|
33.08 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and Balance Sheet Ratios
| |
As of |
| |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 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, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
|
Jun 30, 2024 |
Jun 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, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
|
Jun 30, 2024 |
Jun 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, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 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, 2024 |
March 31, 2024 |
June 30, 2023 |
| |
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
Loans held for investment |
$ |
12,575,651 |
$ |
200,670 |
6.41 |
% |
$ |
12,407,976 |
$ |
194,640 |
6.30 |
% |
$ |
11,877,592 |
$ |
175,549 |
5.93 |
% |
| Loans held for sale |
|
219,826 |
|
3,530 |
6.42 |
% |
|
155,382 |
|
2,308 |
5.94 |
% |
|
192,539 |
|
2,990 |
6.21 |
% |
|
Taxable securities |
|
1,832,002 |
|
9,258 |
2.02 |
% |
|
1,891,817 |
|
9,505 |
2.01 |
% |
|
2,481,712 |
|
12,353 |
1.99 |
% |
|
Tax-exempt securities(1) |
|
263,937 |
|
1,451 |
2.20 |
% |
|
270,279 |
|
1,505 |
2.23 |
% |
|
367,410 |
|
2,165 |
2.36 |
% |
| Total securities |
|
2,095,939 |
|
10,709 |
2.04 |
% |
|
2,162,096 |
|
11,010 |
2.04 |
% |
|
2,849,122 |
|
14,518 |
2.04 |
% |
| Interest-bearing balances with
banks |
|
595,030 |
|
7,874 |
5.32 |
% |
|
570,336 |
|
7,781 |
5.49 |
% |
|
524,307 |
|
6,978 |
5.34 |
% |
| Total interest-earning
assets |
|
15,486,446 |
|
222,783 |
5.77 |
% |
|
15,295,790 |
|
215,739 |
5.66 |
% |
|
15,443,560 |
|
200,035 |
5.19 |
% |
| 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 |
$ |
56,132 |
3.17 |
% |
$ |
6,955,989 |
$ |
52,500 |
3.03 |
% |
$ |
6,114,067 |
$ |
29,185 |
1.91 |
% |
|
Savings deposits |
|
839,638 |
|
729 |
0.35 |
% |
|
860,397 |
|
730 |
0.34 |
% |
|
1,004,096 |
|
813 |
0.32 |
% |
|
Brokered deposits |
|
294,650 |
|
3,944 |
5.37 |
% |
|
445,608 |
|
5,987 |
5.39 |
% |
|
809,613 |
|
10,295 |
5.10 |
% |
|
Time deposits |
|
2,487,873 |
|
26,816 |
4.34 |
% |
|
2,319,420 |
|
23,396 |
4.06 |
% |
|
1,735,567 |
|
11,098 |
2.57 |
% |
| Total interest-bearing
deposits |
|
10,716,572 |
|
87,621 |
3.28 |
% |
|
10,581,414 |
|
82,613 |
3.13 |
% |
|
9,663,343 |
|
51,391 |
2.13 |
% |
| Borrowed funds |
|
564,672 |
|
7,564 |
5.37 |
% |
|
544,564 |
|
7,276 |
5.35 |
% |
|
1,204,968 |
|
15,559 |
5.18 |
% |
| Total interest-bearing
liabilities |
|
11,281,244 |
|
95,185 |
3.39 |
% |
|
11,125,978 |
|
89,889 |
3.24 |
% |
|
10,868,311 |
|
66,950 |
2.47 |
% |
| 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 |
|
$ |
127,598 |
3.31 |
% |
|
$ |
125,850 |
3.30 |
% |
|
$ |
133,085 |
3.45 |
% |
| 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, 2024 |
June 30, 2023 |
| |
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
| Interest-earning assets: |
|
|
|
|
|
|
|
Loans held for investment |
$ |
12,491,814 |
$ |
395,310 |
6.35 |
% |
$ |
11,783,585 |
$ |
339,519 |
5.81 |
% |
| Loans held for sale |
|
187,604 |
|
5,838 |
6.22 |
% |
|
148,221 |
|
4,727 |
6.38 |
% |
|
Taxable securities(1) |
|
1,861,909 |
|
18,763 |
2.02 |
% |
|
2,557,997 |
|
25,670 |
2.01 |
% |
|
Tax-exempt securities |
|
267,108 |
|
2,956 |
2.21 |
% |
|
382,130 |
|
4,510 |
2.36 |
% |
| Total securities |
|
2,129,017 |
|
21,719 |
2.04 |
% |
|
2,940,127 |
|
30,180 |
2.05 |
% |
| Interest-bearing balances with
banks |
|
582,683 |
|
15,655 |
5.40 |
% |
|
494,434 |
|
12,408 |
5.06 |
% |
| Total interest-earning
assets |
|
15,391,118 |
|
438,522 |
5.72 |
% |
|
15,366,367 |
|
386,834 |
5.07 |
% |
| 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 |
$ |
108,632 |
3.10 |
% |
$ |
6,090,549 |
$ |
49,483 |
1.64 |
% |
|
Savings deposits |
|
850,018 |
|
1,459 |
0.34 |
% |
|
1,028,315 |
|
1,639 |
0.32 |
% |
|
Brokered deposits |
|
370,129 |
|
9,931 |
5.38 |
% |
|
603,822 |
|
14,713 |
4.91 |
% |
|
Time deposits |
|
2,403,646 |
|
50,212 |
4.20 |
% |
|
1,650,683 |
|
18,422 |
2.25 |
% |
| Total interest-bearing
deposits |
|
10,648,993 |
|
170,234 |
3.21 |
% |
|
9,373,369 |
|
84,257 |
1.81 |
% |
| Borrowed funds |
|
554,618 |
|
14,840 |
5.36 |
% |
|
1,243,049 |
|
30,963 |
5.01 |
% |
| Total interest-bearing
liabilities |
|
11,203,611 |
|
185,074 |
3.32 |
% |
|
10,616,418 |
|
115,220 |
2.19 |
% |
| 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 |
|
$ |
253,448 |
3.30 |
% |
|
$ |
271,614 |
3.56 |
% |
| 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, 2024 |
Mar 31, 2024 |
Jun 30, 2023 |
|
Jun 30, 2024 |
Jun 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, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 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, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 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, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
|
Jun 30, 2024 |
Jun 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 |
Renasant (NYSE:RNST)
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Renasant (NYSE:RNST)
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