Company Overview - Renasant Corporation (RNST) is currently experiencing significant activity in the options market, particularly with the Sep 19, 2025 $35.00 Put option showing high implied volatility, indicating potential for a major price movement [1] - The company holds a Zacks Rank of 4 (Sell) within the Banks - Southeast industry, which is in the top 5% of the Zacks Industry Rank [3] Analyst Insights - Over the past 60 days, two analysts have raised their earnings estimates for Renasant for the current quarter, while one has lowered theirs, resulting in a consensus estimate increase from 77 cents to 79 cents per share [3] - The high implied volatility suggests that options traders are anticipating a significant price movement for Renasant shares, which could indicate an upcoming event that may lead to a rally or sell-off [2][4] Trading Strategy - Options traders often seek out high implied volatility options to sell premium, a strategy that can capture decay and potentially reduce risk if the underlying stock does not move as much as expected [4]

[PART I Financial Information](index=5&type=section&id=PART%20I%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q2 2025 financial statements reflect significant asset, loan, and deposit growth from the First Bancshares acquisition, though net income declined due to credit loss provisions and merger expenses [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets, net loans, and deposits significantly increased by over 40% as of June 30, 2025, primarily driven by the First Bancshares acquisition Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $26,624,975 | $18,034,868 | +$8,590,107 | +47.6% | | Loans, net | $18,272,677 | $12,683,264 | +$5,589,413 | +44.1% | | Goodwill | $1,419,782 | $988,898 | +$430,884 | +43.6% | | Total Deposits | $21,582,637 | $14,572,612 | +$7,010,025 | +48.1% | | Total Liabilities | $22,846,121 | $15,356,550 | +$7,489,571 | +48.8% | | Total Shareholders' Equity | $3,778,854 | $2,678,318 | +$1,100,536 | +41.1% | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 net income plummeted due to a large provision for credit losses and merger expenses, despite strong net interest income growth Q2 2025 vs Q2 2024 Performance (in thousands, except EPS) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $218,859 | $125,026 | +75.1% | | Provision for Credit Losses | $81,322 | $3,300 | +2364.3% | | Noninterest Income | $48,334 | $38,762 | +24.7% | | Noninterest Expense | $183,204 | $111,976 | +63.6% | | Net Income | $1,018 | $38,846 | -97.4% | | Diluted EPS | $0.01 | $0.69 | -98.6% | - Merger and conversion related expenses of **$20.5 million** were a significant contributor to the increase in noninterest expense in Q2 2025[12](index=12&type=chunk) [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 2025 comprehensive income significantly decreased to $8.6 million, primarily comprising net income and unrealized gains on available-for-sale securities Comprehensive Income Summary (in thousands) | Component | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $1,018 | $38,846 | $42,536 | $78,255 | | Other Comprehensive Income, net of tax | $7,580 | $2,827 | $28,567 | $140 | | **Comprehensive Income** | **$8,598** | **$41,673** | **$71,103** | **$78,395** | [Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased to $3.78 billion by June 30, 2025, primarily driven by the issuance of **31.2 million** shares for an acquisition, partially offset by cash dividends - The company issued **31,238,172** shares of common stock valued at **$1,059,911 thousand** in connection with an acquisition during the six months ended June 30, 2025[17](index=17&type=chunk) - Cash dividends of **$0.44** per share were paid during the first six months of 2025, totaling **$35.4 million**[12](index=12&type=chunk)[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by **$286.6 million** for the six months ended June 30, 2025, driven by financing activities and partially offset by investing activities Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $28,861 | $15,980 | | Net Cash used in Investing Activities | ($262,173) | ($43,479) | | Net Cash from Financing Activities | $519,892 | $78,054 | | **Net Increase in Cash** | **$286,580** | **$50,555** | - The company received net cash of **$261.5 million** from the acquisition of businesses and issued **$1.06 billion** in common stock for the same transaction, indicating a significant non-cash financing and investing activity[20](index=20&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the **$1.06 billion** acquisition of The First Bancshares, Inc., portfolio compositions, credit loss allowance, regulatory capital, and segment performance - Effective April 1, 2025, the Company completed its acquisition of The First Bancshares, Inc. in a transaction valued at approximately **$1.06 billion**, issuing **31,238,172** shares of common stock[26](index=26&type=chunk) - The acquisition resulted in the recording of approximately **$430.9 million** in goodwill and a **$159.6 million** core deposit intangible[27](index=27&type=chunk) - The allowance for credit losses on loans increased to **$290.8 million** at June 30, 2025, from **$201.8 million** at year-end 2024, with the increase largely driven by a provision related to the acquisition and organic loan growth[93](index=93&type=chunk)[95](index=95&type=chunk) - As of June 30, 2025, both Renasant Corporation and Renasant Bank were categorized as **'Well Capitalized'** under all regulatory measures, with a Total Capital to Risk-Weighted Assets ratio of **14.97%** for the corporation and **13.13%** for the bank[167](index=167&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes significant financial changes to the April 1, 2025, acquisition of The First Bancshares, Inc., impacting assets, loans, deposits, and Q2 net income due to credit loss provisions and merger expenses - The acquisition of The First increased total assets by **$7.99 billion**, total loans by **$5.20 billion**, and total deposits by **$6.45 billion** on April 1, 2025[183](index=183&type=chunk)[189](index=189&type=chunk)[192](index=192&type=chunk) Impact of Special Items on Q2 2025 Diluted EPS | Item | Pre-tax Impact (in thousands) | After-tax Impact (in thousands) | Impact to Diluted EPS | | :--- | :--- | :--- | :--- | | Merger and conversion expenses | $(20,479) | $(15,875) | $(0.17) | | Day 1 acquisition provision | $(66,612) | $(50,026) | $(0.53) | - Net interest margin for Q2 2025 was **3.85%**, an increase from **3.31%** in Q2 2024, benefiting from the acquisition, loan growth, and lower interest rates in the second half of 2024[204](index=204&type=chunk)[206](index=206&type=chunk) - Nonperforming loans as a percentage of total loans decreased to **0.76%** at June 30, 2025, from **0.88%** at December 31, 2024[262](index=262&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=82&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes in its market risk since December 31, 2024, referring to its 2024 Annual Report on Form 10-K for further details - There have been no material changes in the company's market risk since December 31, 2024[304](index=304&type=chunk) [Controls and Procedures](index=82&type=section&id=Item%204.%20Controls%20and%20Procedures) The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures are effective as of June 30, 2025[305](index=305&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[305](index=305&type=chunk) [PART II Other Information](index=83&type=section&id=PART%20II%20Other%20Information) [Risk Factors](index=83&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes from the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes from the risk factors set forth in the company's 2024 Annual Report on Form 10-K[306](index=306&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=83&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities and no share repurchases under its **$100 million** program during Q2 2025, except for **2,799** shares withheld for tax liabilities - No shares were repurchased during Q2 2025 under the **$100 million** stock repurchase program authorized in October 2024[308](index=308&type=chunk)[310](index=310&type=chunk) - A total of **2,799** shares were purchased during Q2 2025, all of which were shares withheld to satisfy tax liabilities from vesting restricted stock awards, not as part of the public repurchase plan[308](index=308&type=chunk) [Other Information](index=84&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, no director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the second quarter of 2025[311](index=311&type=chunk) [Exhibits](index=84&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the merger agreement with The First Bancshares, Inc., various indentures, employment agreements, and required certifications by the CEO and CFO

Group 1 - Renasant Corporation held its 2025 Second Quarter Earnings Conference Call and Webcast, with participation from key executive management team members [2][3] - The call included forward-looking statements that involve risks and uncertainties, highlighting factors that could lead to actual results differing from expectations [4]

Financial Data and Key Metrics Changes - Reported earnings were $1,000,000 or $0.01 per diluted share, while adjusted earnings were approximately $66,000,000 or $0.69 per diluted share [5] - Loans increased by $312,000,000 or 7% from the previous quarter, and deposits rose by $361,000,000 or 7% [6] - Core net interest margin expanded from 3.42% to 3.58%, while reported margin increased from 3.45% to 3.85% for the quarter [6] Business Line Data and Key Metrics Changes - Adjusted pre-provision net revenue was $103,000,000, with non-interest income at $48,300,000, reflecting a linked quarter increase of $11,900,000 [10] - Non-interest expense was $183,200,000 for the second quarter, with merger and conversion expenses of $20,500,000 included [10][11] Market Data and Key Metrics Changes - The fair value of assets acquired in the merger totaled $7,900,000,000, including total loans of $5,200,000,000 and total deposits of $6,400,000,000 [8] - The company experienced improvement in past due loan percentages, with non-performing loans remaining flat [9] Company Strategy and Development Direction - The merger with First Bank shares is seen as a significant opportunity for growth, with a focus on integrating teams and meeting customer needs [4][5] - The company aims for mid-single digit loan and deposit growth, with a strong pipeline and focus on capturing market share [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration process and the potential for future growth, emphasizing the importance of focusing on the merger's benefits [12][61] - The company is cautious about potential economic impacts but remains committed to achieving its strategic goals [36][39] Other Important Information - The adjusted total cost of deposits decreased by 18 basis points to 2.04%, while adjusted loan yields decreased by only one basis point to 6.18% [7] - The company expects additional conversion-related expenses in the third quarter, with a goal to achieve modeled synergies by year-end [11] Q&A Session Summary Question: Can you walk through the margin and expectations moving forward? - Management indicated that core margin is expected to see modest expansion, with two rate cuts anticipated later in the year [16][17] Question: What are the expectations for core expense levels in the next few quarters? - Management stated that efficiencies from the merger will start to show in Q3, with a clean income statement expected by Q1 next year [34][36] Question: Can you provide color on elevated charge-offs of problem loans? - Management clarified that the charge-offs were related to individual credits and not systemic issues, with expectations for future charge-offs to revert to historical averages [51][52] Question: What are the thoughts on potential buybacks? - Management emphasized that capital is primarily for organic growth, but buybacks are considered as part of the capital allocation strategy [55] Question: When might the company consider whole bank M&A again? - Management indicated that it is too early to plan for M&A, focusing instead on the successful integration of the current merger [61][62]

Financial Data and Key Metrics Changes - Reported earnings were $1,000,000 or $0.01 per diluted share, while adjusted earnings were approximately $66,000,000 or $0.69 per diluted share [5] - Loans increased by $312,000,000 or 7% from the previous quarter, and deposits rose by $361,000,000 or 7% [6] - Core net interest margin expanded from 3.42% to 3.58%, while reported margin increased from 3.45% to 3.85% for the quarter [6] Business Line Data and Key Metrics Changes - Adjusted pre-provision net revenue was $103,000,000, with net interest income growth driven by improved net interest margin and balance sheet growth [11] - Non-interest income was $48,300,000, reflecting a linked quarter increase of $11,900,000, largely driven by the mortgage division [11] - Non-interest expense for the quarter was $183,200,000, with merger and conversion expenses of $20,500,000 included [11] Market Data and Key Metrics Changes - The fair value of assets acquired in the merger totaled $7,900,000,000, including total loans of $5,200,000,000 [9] - The fair value of liabilities assumed was $6,900,000,000, including total deposits of $6,400,000,000 [9] - All regulatory capital ratios remained above required minimums, indicating a well-capitalized status [9] Company Strategy and Development Direction - The company is focused on successfully integrating teams from both merged entities and meeting customer needs [4] - Management expressed confidence in achieving modeled synergies by year-end and emphasized the importance of cultural integration [12] - The company aims for mid-single-digit loan and deposit growth, with a strong pipeline and opportunities in key markets [25] Management's Comments on Operating Environment and Future Outlook - Management noted that the merger has created a strong foundation for future growth, with expectations for modest expansion in core margin [17] - The company is on track to achieve its long-term strategic goals regarding profitability metrics such as ROA and efficiency ratio [39] - Management remains cautious about potential economic impacts but is optimistic about the integration and growth opportunities [26] Other Important Information - The company recorded a credit loss provision on loans of $14,700,000, with net charge-offs primarily from two credits [10] - The adjusted efficiency ratio improved by about seven percentage points, reflecting better revenue and cost containment [12] - Management indicated that additional conversion-related expenses are expected in the third quarter [12] Q&A Session Summary Question: Can you walk through the margin and expectations for core margin moving forward? - Management expects modest expansion in core margin, with a spot margin in June at 3.60% [18][20] Question: What are the expectations for core expense levels in the next few quarters? - Management indicated that efficiencies from the merger will start to show in Q3, with a goal for a clean income statement by Q1 next year [35][36] Question: What is the outlook for loan growth and pipeline? - Management reported a strong pipeline and guided for mid-single-digit loan and deposit growth, with efforts to capture market share [25][26] Question: Can you provide color on elevated charge-offs and future expectations? - Management clarified that recent charge-offs were not systemic and expected future charge-offs to revert to historical averages of around 10 basis points [50][51] Question: What are the thoughts on potential buybacks and capital allocation? - Management stated that capital is primarily for organic growth, with buybacks considered but not prioritized at this time [52][54] Question: When might the company consider whole bank M&A opportunities? - Management indicated that it is too early to plan for M&A, focusing instead on the successful integration of the current merger [60][62]

Financial Performance - Net income was $1 million with diluted EPS of $001, impacted by merger expenses of $205 million and Day 1 acquisition provision for credit losses of $666 million; adjusted diluted EPS was $069[11] - Net interest margin was 385%, up 40 basis points linked quarter; adjusted net interest margin was 358%, up 16 basis points linked quarter[11] - The company generated net organic loan growth of $3116 million for the quarter, or 69% annualized, and net organic deposit growth of $3613 million, or 68% annualized[11] Balance Sheet - Assets reached $266 billion[6] - Loans totaled $186 billion[6] - Deposits amounted to $216 billion[6] - Equity stood at $38 billion[6] Capital and Liquidity - The company has a $100 million stock repurchase program, with no buyback activity in the second quarter of 2025[30] - Available liquidity sources totaled $136 billion, while uninsured and uncollateralized deposits were $63 billion[64] Asset Quality - The ratio of allowance for credit losses on loans to total loans increased 1 basis point to 157%[11] - Nonperforming loans to total loans held constant at 076%[11] Merger and Acquisition - On April 1, 2025, the company completed its merger with The First Bancshares, Inc, which had $79 billion in assets, $52 billion in loans, and $64 billion in deposits[11] - The company acquired $15 billion in securities from The First and sold $6865 million of The First securities and reinvested at higher rates[71] Noninterest Income and Expense - Noninterest income increased $119 million linked quarter, primarily due to the merger with The First and a gain on sale of MSRs of $15 million[57] - Noninterest expense increased $693 million linked quarter, primarily related to the merger with The First; merger and conversion expenses increased $197 million linked quarter[61]

Core Viewpoint - Renasant's quarterly earnings of $0.69 per share missed the Zacks Consensus Estimate of $0.74 per share, representing an earnings surprise of -6.76% [1] - The company reported revenues of $267.19 million, exceeding the Zacks Consensus Estimate by 3.07% and showing significant growth from $163.79 million a year ago [2] Earnings Performance - Over the last four quarters, Renasant has surpassed consensus EPS estimates three times [2] - The company had a previous quarter earnings expectation of $0.60 per share, but actual earnings were $0.66, resulting in a positive surprise of +10% [1] Stock Performance - Renasant shares have increased approximately 7.6% since the beginning of the year, outperforming the S&P 500's gain of 7.2% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.77 for the next quarter and $3.00 for the current fiscal year [7] - The Zacks Rank for Renasant is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Southeast industry, to which Renasant belongs, is currently in the top 16% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Another company in the same industry, Origin Bancorp, is expected to report quarterly earnings of $0.78 per share, reflecting a year-over-year increase of +16.4% [9]

[Q2 2025 Earnings Announcement](index=1&type=section&id=RENASANT%20CORPORATION%20ANNOUNCES%20EARNINGS%20FOR%20THE%20SECOND%20QUARTER%20OF%202025) [Quarterly Highlights](index=1&type=section&id=Quarterly%20Highlights) Renasant Corporation's Q2 2025 results were significantly impacted by the merger with The First Bancshares, Inc., driving balance sheet growth despite merger-related expenses affecting GAAP net income - The Company completed its merger with The First Bancshares, Inc. on April 1, 2025, adding approximately **$7.9 billion in assets**, **$5.2 billion in loans**, and **$6.4 billion in deposits**[4](index=4&type=chunk) - Net interest margin for Q2 2025 was **3.85%**, an increase of **40 basis points** from the linked quarter, with adjusted net interest margin (non-GAAP) at **3.58%**, up **16 basis points**[8](index=8&type=chunk) - The combined company achieved net organic loan growth of **$311.6 million** (**6.9% annualized**) and net organic deposit growth of **$361.3 million** (**6.8% annualized**) during the quarter[8](index=8&type=chunk) - A provision for credit losses of **$81.3 million** was recorded, including a **$66.6 million Day 1 acquisition provision** related to the merger[8](index=8&type=chunk) Q2 2025 Key Financial Results | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $1.0 million | $41.5 million | $38.8 million | | Diluted EPS | $0.01 | $0.65 | $0.69 | | Adjusted Diluted EPS (Non-GAAP) | $0.69 | $0.66 | $0.69 | [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) [Income Statement](index=3&type=section&id=Income%20Statement) Net income for Q2 2025 significantly decreased to $1.0 million due to increased provisions for credit losses and noninterest expenses from the merger, while net interest income grew substantially Selected Income Statement Data (in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $218,859 | $134,197 | $125,026 | | Total Provision for Credit Losses | $81,322 | $4,750 | $3,300 | | Noninterest Income | $48,334 | $36,395 | $38,762 | | Noninterest Expense | $183,204 | $113,876 | $111,976 | | Net Income | $1,018 | $41,518 | $38,846 | | Adjusted Net Income (Non-GAAP) | $65,877 | $42,111 | $38,846 | [Performance and Capital Ratios](index=4&type=section&id=Performance%20and%20Capital%20Ratios) GAAP performance ratios were depressed in Q2 2025 due to merger costs, while adjusted non-GAAP ratios indicated stable core performance, and capital ratios decreased post-merger Key Performance Ratios | Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Return on average assets (ROA) | 0.02% | 0.94% | 0.90% | | Adjusted ROA (non-GAAP) | 1.01% | 0.95% | 0.90% | | Return on average equity (ROE) | 0.11% | 6.25% | 6.68% | | Adjusted ROE (non-GAAP) | 7.06% | 6.34% | 6.68% | | Efficiency ratio (FTE) | 67.59% | 65.51% | 67.31% | | Adjusted efficiency ratio (non-GAAP) | 57.07% | 64.43% | 66.60% | Capital and Balance Sheet Ratios | Ratio | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | | Tangible book value per share (non-GAAP) | $23.10 | $27.07 | $23.89 | | Common equity tier 1 capital ratio | 11.09% | 12.59% | 10.75% | | Total risk-based capital ratio | 14.99% | 16.89% | 15.15% | [Noninterest Income and Noninterest Expense](index=5&type=section&id=Noninterest%20Income%20and%20Noninterest%20Expense) Noninterest income increased to $48.3 million in Q2 2025, driven by merger-related growth in service charges and mortgage banking, while noninterest expense sharply rose to $183.2 million due to merger costs and increased operational expenses - Total noninterest income increased by **$11.9 million** linked quarter, with notable growth in service charges on deposit accounts (**+$3.3 million**), fees and commissions (**+$2.9 million**), and mortgage banking income (**+$3.1 million**)[12](index=12&type=chunk) - Total noninterest expense increased by **$69.3 million** linked quarter, largely driven by a **$27.6 million** increase in salaries and employee benefits, a **$7.8 million** increase in intangible amortization, and **$20.5 million** in merger and conversion related expenses[8](index=8&type=chunk)[12](index=12&type=chunk) [Mortgage Banking Income](index=5&type=section&id=Mortgage%20Banking%20Income) Mortgage banking income for Q2 2025 reached $11.3 million, an increase from $8.1 million in Q1 2025, supported by higher net gains on loan sales and increased fee income Mortgage Banking Income Components (in thousands) | Component | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Gain on sales of loans, net | $5,316 | $4,500 | $5,199 | | Fees, net | $3,740 | $2,317 | $2,866 | | Mortgage servicing income, net | $2,207 | $1,330 | $1,633 | | **Total** | **$11,263** | **$8,147** | **$9,698** | [Balance Sheet and Portfolio Analysis](index=6&type=section&id=Balance%20Sheet%20and%20Portfolio%20Analysis) [Balance Sheet](index=6&type=section&id=Balance%20Sheet) The company's balance sheet significantly expanded in Q2 2025, with total assets reaching $26.6 billion, driven by substantial increases in loans and deposits following the merger Selected Balance Sheet Data (in thousands) | Account | Jun 30, 2025 | Mar 31, 2025 | | :--- | :--- | :--- | | Total Assets | $26,624,975 | $18,271,381 | | Loans held for investment | $18,563,447 | $13,055,593 | | Goodwill | $1,419,782 | $988,898 | | Total Deposits | $21,582,637 | $14,772,095 | | Total Shareholders' Equity | $3,778,854 | $2,727,105 | [Net Interest Income and Net Interest Margin](index=7&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income on a fully tax-equivalent basis rose to $222.7 million in Q2 2025, with the net interest margin expanding by 40 basis points to 3.85%, driven by the merger and a decrease in the cost of total deposits - The six-month net interest margin for the period ending June 30, 2025, was **3.68%**, compared to **3.30%** for the same period in 2024[16](index=16&type=chunk) Net Interest Margin Analysis | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Margin | 3.85% | 3.45% | 3.31% | | Yield on Interest-Earning Assets | 6.01% | 5.61% | 5.77% | | Cost of Interest-Bearing Liabilities | 2.96% | 2.99% | 3.38% | | Cost of Total Deposits | 2.12% | 2.22% | 2.47% | [Loan Portfolio](index=9&type=section&id=Loan%20Portfolio) The total loan portfolio expanded to $18.6 billion at the end of Q2 2025, primarily due to the acquisition of The First's loan portfolio, with significant growth in commercial real estate, 1-4 family mortgages, and commercial loans Loan Portfolio Composition (in thousands) | Loan Category | Jun 30, 2025 | Mar 31, 2025 | | :--- | :--- | :--- | | Commercial, financial, agricultural | $2,666,923 | $1,888,580 | | Real estate - construction | $1,339,967 | $1,090,862 | | Real estate - 1-4 family mortgages | $4,874,679 | $3,583,080 | | Real estate - commercial mortgages | $9,470,134 | $6,320,120 | | **Total loans** | **$18,563,447** | **$13,055,593** | [Credit Quality](index=9&type=section&id=Credit%20Quality) [Credit Quality and Allowance for Credit Losses on Loans](index=9&type=section&id=Credit%20Quality%20and%20Allowance%20for%20Credit%20Losses%20on%20Loans) Credit quality metrics in Q2 2025 were mixed, with nonperforming loans to total loans remaining stable at 0.76%, but total nonperforming loans and criticized loans increasing, while the allowance for credit losses on loans rose to 1.57% due to the Day 1 provision - Total nonperforming assets increased to **$153.6 million** from **$107.4 million** in the previous quarter, primarily due to the merger[18](index=18&type=chunk) - Net loan charge-offs for the second quarter of 2025 were **$12.1 million**, representing **0.26%** of average loans on an annualized basis[18](index=18&type=chunk) Key Credit Quality Metrics | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | | Nonperforming loans / total loans | 0.76% | 0.76% | 0.78% | | Allowance for credit losses / total loans | 1.57% | 1.56% | 1.59% | | Allowance for credit losses / nonperforming loans | 204.97% | 206.55% | 203.88% | | Criticized loans / total loans | 2.66% | 2.45% | 2.62% | [Supplementary Information](index=10&type=section&id=Supplementary%20Information) [Conference Call and Company Information](index=10&type=section&id=Conference%20Call%20and%20Company%20Information) The company will host a conference call on July 23, 2025, to discuss Q2 results, with Renasant Corporation operating 300 offices across the Southeast and holding approximately $26.6 billion in assets - A conference call is scheduled for **10:00 AM Eastern Time** on Wednesday, July 23, 2025[19](index=19&type=chunk) - Renasant Corporation, parent of Renasant Bank, has assets of approximately **$26.6 billion** and **300 banking, lending, mortgage, and wealth management offices**[22](index=22&type=chunk) [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This section provides a cautionary note regarding forward-looking statements, emphasizing that actual results may differ due to various risks including acquisition integration, economic conditions, and regulatory changes - The press release contains forward-looking statements subject to significant business, economic, and competitive risks and uncertainties[23](index=23&type=chunk) - Key risk factors include the ability to efficiently integrate acquisitions, the effect of economic conditions and interest rates, competitive pressures, and changes in laws and regulations[24](index=24&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Explanation of Non-GAAP Measures](index=11&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company uses non-GAAP financial measures like adjusted net income and adjusted diluted EPS to provide a clearer view of core operating performance by excluding merger expenses and acquisition provisions - The company uses non-GAAP measures to exclude certain charges like merger and conversion expenses and the Day 1 acquisition provision for credit losses to facilitate period-to-period comparisons and show meaningful indicators of operating performance[28](index=28&type=chunk)[29](index=29&type=chunk) [Non-GAAP Reconciliations](index=12&type=section&id=Non-GAAP%20Reconciliations) This section details the reconciliation of GAAP figures to non-GAAP counterparts, showing how Q2 2025 GAAP net income of $1.0 million adjusts to an adjusted net income of $65.9 million by adding back merger expenses and acquisition provisions Reconciliation of Net Income to Adjusted Net Income (in thousands) | Description | Q2 2025 | | :--- | :--- | | Net income (GAAP) | $1,018 | | Merger and conversion expense | $20,479 | | Day 1 acquisition provision for loan losses | $62,190 | | Day 1 acquisition provision for unfunded commitments | $4,422 | | Gain on sales of MSR | ($1,467) | | Tax effect of adjustments | ($20,765) | | **Adjusted net income (non-GAAP)** | **$65,877** | Reconciliation of Diluted EPS to Adjusted Diluted EPS | Description | Q2 2025 | | :--- | :--- | | Diluted earnings per share (GAAP) | $0.01 | | **Adjusted diluted earnings per share (non-GAAP)** | **$0.69** |

Core Viewpoint - Renasant Corporation reported its earnings results for the second quarter of 2025, highlighting significant progress in the merger with The First Bancshares, Inc. and its impact on financial performance. Earnings Summary - Net income for Q2 2025 was $1.0 million, significantly impacted by merger-related expenses of $20.5 million and a Day 1 acquisition provision for credit losses of $66.6 million [7][11] - Basic and diluted EPS were both $0.01, while adjusted diluted EPS (non-GAAP) was $0.69 [7][10] - The company generated net organic loan growth of $311.6 million for the quarter, representing a 6.9% annualized growth rate [7] Merger Details - The merger with The First Bancshares, Inc. was completed on April 1, 2025, with The First operating 116 locations and having $7.9 billion in assets [3] - The merger contributed to a significant increase in net interest income, which rose to $222.7 million, up $85.3 million from the previous quarter [7] Balance Sheet Highlights - Total assets reached $26.6 billion as of June 30, 2025, up from $18.3 billion in the previous quarter [18] - Total deposits increased to $21.6 billion, with noninterest-bearing deposits rising to $5.4 billion, representing 24.8% of total deposits [18][19] Credit Quality - The provision for credit losses was $81.3 million, including a $66.6 million Day 1 acquisition provision [11] - The allowance for credit losses on loans to total loans ratio was 1.57% as of June 30, 2025 [11] Noninterest Income and Expense - Noninterest income for Q2 2025 was $48.3 million, an increase of $11.9 million linked quarter, primarily due to the merger [7][15] - Noninterest expense rose to $183.2 million, primarily driven by merger-related costs [7][15] Performance Ratios - Return on average assets was 0.02% for Q2 2025, while adjusted return on average assets (non-GAAP) was 1.01% [13] - The efficiency ratio (fully taxable equivalent) was 67.59% for the quarter [13] Capital and Stock Repurchase Program - The company has a $100.0 million stock repurchase program in effect through October 2025 [7]

Core Points - Renasant Corporation will announce its 2025 second quarter results on July 22, 2025, after the NYSE closes [1] - A quarterly webcast and conference call with analysts is scheduled for July 23, 2025, at 10:00 AM Eastern Time [1] - The webcast will be accessible through Renasant's investor relations website and via telephone for participants [2] Company Overview - Renasant Corporation is the parent company of Renasant Bank, which has been in operation for 121 years [4] - The company has approximately $26.0 billion in assets and operates over 280 banking, lending, mortgage, and wealth management offices in the Southeast, along with nationwide factoring and asset-based lending services [4]