Renasant (RNST) Q4 2024 Earnings Call January 29, 2025 10:00 AM ET Company Participants Kelly Hutcheson - Executive VP & Chief Accounting OfficerMitchell Waycaster - CEO & Executive Vice ChairmanKevin Chapman - President & COOJames Mabry - Executive VP & CFOJoseph Yanchunis - Senior Equity Research AssociateWill Jones - Associate Vice PresidentMatt Olney - Managing DirectorDavid Meredith - Senior EVP & Chief Credit OfficerDavid Bishop - Director Conference Call Participants Stephen Scouten - Managing Direct ...

Core Insights - Renasant reported revenue of $167.1 million for Q4 2024, marking a 14.2% increase year-over-year and a surprise of +1.05% over the Zacks Consensus Estimate of $165.37 million [1] - The company's EPS for the quarter was $0.73, down from $0.76 in the same quarter last year, with a surprise of +19.67% compared to the consensus estimate of $0.61 [1] Financial Performance Metrics - Net Interest Margin was reported at 3.4%, exceeding the average estimate of 3.3% from three analysts [4] - The Efficiency Ratio (GAAP) was 67.6%, slightly higher than the estimated 66.6% by three analysts [4] - Total Nonperforming Loans stood at $113.28 million, better than the average estimate of $123.54 million from two analysts [4] - Annualized net loan charge-offs as a percentage of average loans were 0.1%, lower than the estimated 0.2% [4] - Total Nonperforming Assets were reported at $121.95 million, compared to the average estimate of $133.05 million [4] - Average Balance of Total Interest-Earning Assets was $16.07 billion, surpassing the average estimate of $15.90 billion [4] - Net Interest Income was $132.88 million, exceeding the average estimate of $130.25 million [4] - Net Interest Income (FTE) was reported at $135.50 million, compared to the average estimate of $132.79 million [4] - Total Noninterest Income was $34.22 million, slightly below the average estimate of $35.12 million [4] Stock Performance - Renasant shares have returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1: Earnings Performance - Renasant reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, but down from $0.76 per share a year ago, representing an earnings surprise of 19.67% [1] - The company has surpassed consensus EPS estimates for the last four quarters [2] - Renasant's revenues for the quarter ended December 2024 were $167.1 million, surpassing the Zacks Consensus Estimate by 1.05%, compared to $146.31 million in the same quarter last year [2] Group 2: Stock Performance and Outlook - Renasant shares have increased by approximately 4.6% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $163.1 million, and for the current fiscal year, it is $2.49 on revenues of $846.5 million [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Banks - Southeast industry is currently in the top 15% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8] - Another company in the same industry, First Bancorp, is expected to report quarterly earnings of $0.72 per share, with revenues projected to be $102 million, reflecting a 5.1% increase from the previous year [9]

Financial Performance - Net income for Q4 2024 was $44.7 million, with diluted EPS at $0.70 and adjusted diluted EPS at $0.73[4] - Net income (GAAP) for the three months ended December 31, 2024, was $44,747 thousand, compared to $28,124 thousand for the same period in 2023, representing a 59% increase[30] - Adjusted net income (non-GAAP) for the three months ended December 31, 2024, was $46,458 thousand, compared to $42,887 thousand for the same period in 2023, marking an 8.5% increase[30] - Average shareholders' equity (GAAP) increased to $2,656,885 thousand for the three months ended December 31, 2024, compared to $2,261,025 thousand in the same period last year, a rise of 17.5%[30] - Tangible net income (non-GAAP) for the three months ended December 31, 2024, was $45,597 thousand, compared to $29,158 thousand for the same period in 2023, representing a 56.5% increase[30] Interest Income and Loans - Net interest income for Q4 2024 was $135.5 million, an increase of $1.9 million from the previous quarter, with a net interest margin of 3.36%[4] - Net interest income for the three months ended December 31, 2024, was $135,502 thousand, with a net interest margin of 3.36%[13] - For the twelve months ended December 31, 2024, net interest income was $522,526 thousand, with a net interest margin of 3.34%[14] - Loans increased by $257.4 million on a linked quarter basis, representing an annualized net loan growth of 8.1%[6] - Loans held for investment amounted to $12,746,941 thousand, generating interest income of $201,562 thousand at a yield of 6.29%[13] Noninterest Income and Expenses - Noninterest income decreased by $55.1 million on a linked quarter basis, primarily due to a prior quarter gain from the sale of an insurance agency[6] - Noninterest income for the three months ended December 31, 2024, totaled $34,218 thousand, a significant increase from $20,356 thousand in the same period last year, representing a growth of 68.2%[10] - Total noninterest expense for the twelve months ended December 31, 2024, was $461,618 thousand, up from $439,622 thousand in the previous year, indicating an increase of 5%[10] - Noninterest expense (GAAP) for the three months ended December 31, 2024, was $114,747,000, compared to $111,880,000 for the same period in 2023, an increase of 2.5%[32] Asset and Equity Growth - As of December 31, 2024, total assets increased to $18,034,868 thousand from $17,360,535 thousand a year earlier, reflecting a growth of approximately 3.9%[12] - Shareholders' equity to assets ratio improved to 14.85% as of December 31, 2024, from 13.23% a year earlier, indicating stronger financial stability[12] - Tangible shareholders' equity (non-GAAP) increased to $1,675,315 thousand as of December 31, 2024, up from $1,286,923 thousand a year earlier, representing a growth of 30.2%[31] Credit Quality - The provision for credit losses was $2.6 million for Q4 2024, compared to $0.9 million in the previous quarter[6] - Nonperforming loans to total loans decreased to 0.88% at December 31, 2024, down from 0.94% at September 30, 2024[6] - The allowance for credit losses on loans was $201,756, which is 1.57% of total loans, slightly down from 1.59% on September 30, 2024[17] - The total criticized loans amounted to $372,590, which is 2.89% of total loans, a slight decrease from 3.02% on September 30, 2024[17] Mergers and Acquisitions - The company announced a transformative merger with The First in July 2024, focusing on organic growth and disciplined pricing[3] - The company is in the process of integrating its recent acquisition of The First Bancshares, Inc., which may impact future financial performance[23] - Merger and conversion expenses for the three months ended December 31, 2024, totaled $2,076 thousand, compared to $0 in the same period last year[30] Market Position and Strategy - The company plans to focus on market expansion and enhancing operational efficiency to drive future growth[22] - Renasant Corporation has approximately $18.0 billion in total assets and operates 186 banking and financial service offices[21] Financial Ratios - The efficiency ratio (fully taxable equivalent) was 67.61% for Q4 2024, compared to 54.73% in the previous quarter[8] - Return on average assets (GAAP) was 0.99% for the quarter, down from 1.63% in the previous quarter, while the twelve-month return was 1.11%, compared to 0.84% a year earlier[31] - Return on average equity (GAAP) was 6.70% for the quarter, down from 11.29% in the previous quarter, while the twelve-month return was 7.92%, compared to 6.50% a year earlier[31] Adjusted Financial Metrics - Adjusted pre-provision net revenue (non-GAAP) for the twelve months ended December 31, 2024, was $254,238 thousand, up from $192,780 thousand in 2023, reflecting a 32% growth[30] - Adjusted tangible net income (non-GAAP) for the twelve months ended December 31, 2024, was $168,584 thousand, down from $182,025 thousand in 2023, a decrease of 7.4%[30] - Total adjusted noninterest income for the three months ended December 31, 2024, was $33,966,000, a decrease from $38,541,000 for the same period in 2023, representing a decline of 12.0%[32]

Core Viewpoint - Renasant Corporation reported its fourth quarter earnings for 2024, highlighting a successful year marked by a transformative merger and a focus on organic growth despite fluctuations in net income and noninterest income [1][2]. Financial Performance - Net income for Q4 2024 was $44.7 million, compared to $72.5 million in Q3 2024 and $28.1 million in Q4 2023 [2][6]. - Basic and diluted earnings per share (EPS) were both $0.70 for Q4 2024, up from $0.50 in Q4 2023 [2][6]. - Adjusted diluted EPS (non-GAAP) was $0.73 for Q4 2024, slightly down from $0.76 in Q4 2023 [2][6]. Income Statement Highlights - Total interest income for Q4 2024 was $225.3 million, a decrease from $229.0 million in Q3 2024 [8]. - Net interest income (fully tax equivalent) was $135.5 million, an increase of $1.9 million from the previous quarter [6][18]. - Noninterest income decreased by $55.1 million on a linked quarter basis, primarily due to the absence of a significant pre-tax gain from the insurance agency sale recognized in Q3 2024 [6][14]. Balance Sheet and Capital Management - Total assets as of December 31, 2024, were $18.03 billion, up from $17.96 billion at the end of Q3 2024 [17]. - Loans held for investment increased by $257.4 million, representing an annualized net loan growth of 8.1% [6][16]. - The company has a $100 million stock repurchase program in effect through October 2025, with no buyback activity during Q4 2024 [6][12]. Credit Quality - The provision for credit losses was $2.6 million for Q4 2024, compared to $0.9 million in Q3 2024 [5][9]. - The ratio of the allowance for credit losses on loans to total loans was 1.57% as of December 31, 2024, down two basis points from the previous quarter [9]. - Nonperforming loans to total loans decreased to 0.88% at December 31, 2024, compared to 0.94% at September 30, 2024 [9]. Performance Ratios - Return on average assets was 0.99% for Q4 2024, down from 1.63% in Q3 2024 [11]. - Return on average equity was 6.70% for Q4 2024, compared to 11.29% in Q3 2024 [11]. - The efficiency ratio (fully taxable equivalent) was 67.61% for Q4 2024, up from 54.73% in Q3 2024 [11].

Core Points - Renasant Corporation will announce its 2024 fourth quarter results on January 28, 2025, after the NYSE closes [1] - A quarterly webcast and conference call with analysts is scheduled for January 29, 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 120 years [4] - The company has approximately $18.0 billion in assets and operates 186 banking, lending, mortgage, and wealth management offices throughout the Southeast [4] - Renasant also offers factoring and asset-based lending services on a nationwide basis [4]

Core Viewpoint - Renasant Corporation will announce its 2024 fourth quarter results on January 28, 2025, and will hold a conference call for analysts on January 29, 2025 [1][2]. Company Overview - Renasant Corporation is the parent company of Renasant Bank, which has been in operation for 120 years and currently holds approximately $18.0 billion in assets [4]. - The company operates 186 banking, lending, mortgage, and wealth management offices throughout the Southeast and offers factoring and asset-based lending services nationwide [4]. Conference Call Details - The conference call will be accessible via a webcast on Renasant's investor relations website and through telephone access for both U.S. and international participants [2][3]. - A replay of the conference call will be available for one year on the company's website and via telephone until February 12, 2025 [3].

Core Viewpoint - Investors in Renasant Corporation (RNST) should closely monitor the stock due to significant implied volatility in the options market, particularly for the Dec 20, 2024 $15.00 Put option [1] Company Analysis - Renasant Corporation currently holds a Zacks Rank of 3 (Hold) within the Banks-Southeast industry, which is positioned in the top 26% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have increased their earnings estimates for the current quarter, while three analysts have revised their estimates downward, leading to a consensus estimate decrease from 61 cents per share to 60 cents [3] Options Market Insights - The high implied volatility surrounding Renasant shares suggests that options traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Seasoned options traders often seek out options with high implied volatility to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected by expiration [4]

TUPELO, Miss., Nov. 11, 2024 (GLOBE NEWSWIRE) -- In recognition of Veterans Day, Renasant proudly donated $20,000 to multiple veteran support organizations across the Southeast, continuing its commitment to honoring and supporting military service members. The donation is part of the company’s ongoing efforts to give back to those who have served in the United States Armed Forces and to enhance their lives through community outreach and partnerships. This donation was evenly divided among 15 nonprofit veter ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________ FORM 10-Q ________________________________________________________ (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file num ...