Renasant (RNST) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $72.5 million, with diluted EPS of $1.18 and adjusted EPS of $0.70, reflecting a significant after-tax gain from the insurance agency sale.

• Shareholders approved the merger with The First Bancshares, Inc., expected to close in the first half of 2025, pending regulatory approvals.

• Completed a $217 million public stock offering, raising capital for growth and future acquisitions.

• Sale of the insurance agency generated $56.4 million in proceeds and a $34.1 million after-tax gain, significantly boosting noninterest income.

• Loans and deposits grew in the quarter, with deposit growth outpacing loan growth.

Financial highlights

• Total assets at quarter-end were $18.0 billion, with loans at $12.6 billion and deposits at $14.5 billion.

• Net interest income for Q3 2024 was $133.6 million, up $6.0 million sequentially; net interest margin rose to 3.36%.

• Noninterest income increased $50.5 million sequentially, mainly from the insurance agency sale.

• Noninterest expense rose $10.0 million sequentially, including $11.3 million in merger and conversion expenses.

• Book value per share increased 0.1% and tangible book value per share rose 8.9% sequentially.

Outlook and guidance

• Merger with The First Bancshares, Inc. is anticipated to close in the first half of 2025, subject to regulatory and other approvals.

• Board approved a new $100 million stock repurchase program, replacing the prior plan that expired in October 2024.

• Management anticipates noninterest income will decrease in future periods due to the sale of the insurance agency.

• Efficiency ratio improved to 54.73% in Q3 2024, with a goal to further improve through revenue growth and cost control.

• Loan growth is projected to remain in the low- to mid-single-digit range, with payoffs as a key variable.