Renasant (RNST) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $41.5 million, with diluted EPS of $0.65 and adjusted diluted EPS of $0.66, reflecting solid profitability and growth in loans and deposits compared to the same quarter last year.

• Completed the merger with The First Bancshares, Inc. on April 1, 2025, expanding market presence, scale, and adding $8.0 billion in assets, $5.4 billion in loans, and $6.5 billion in deposits.

• Total assets increased to $18.3 billion at March 31, 2025, from $18.03 billion at year-end 2024.

• Integration efforts are progressing well, with early signs of operational alignment and employee engagement.

• Leadership transition underway, with Mitch Waycaster moving to Executive Vice Chair after seven years as CEO.

Financial highlights

• Net interest income for Q1 2025 was $137.4 million (FTE), up $1.9 million sequentially; net interest margin rose to 3.45%, up 9 basis points.

• Noninterest income increased $2.2 million sequentially, driven by higher mortgage banking income and gains on SBA loan sales.

• Noninterest expense was $113.9 million, up slightly due to merger-related costs, but down $0.9 million sequentially as merger and conversion expenses declined.

• Loans grew by $170.6 million (5.4% annualized), and deposits increased by $199.5 million sequentially, with noninterest-bearing deposits up $137.4 million.

• Book value per share was $42.79 and tangible book value per share was $27.07 at quarter-end, both increasing sequentially.

Outlook and guidance

• Management expects the combined company to accelerate profit performance, realize cost savings, and operate in attractive Southeast banking markets following the merger.

• Cost synergies from the merger anticipated to begin showing in the income statement after the August conversion.

• Core net interest margin projected to expand 10-15 basis points in Q2, with all-in NIM up 20-30 basis points.

• Focus remains on disciplined loan growth, core deposit expansion, and cost control.

• No material changes in risk factors or critical accounting estimates since year-end 2024.