Renasant (RNST) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2025 was $41.5 million, with diluted EPS at$ 0.65 and adjusted diluted EPS at $0.66[4] - Net income (GAAP) for the three months ended March 31, 2025, was$ 41,518,000, a decrease of 6.2% from $44,747,000 in the previous quarter[30] - Adjusted diluted earnings per share (non-GAAP) was$ 0.66, compared to $0.73 in the previous quarter, indicating a decrease of 9.6%[31] - Adjusted pre-provision net revenue (non-GAAP) increased to$ 57,507,000 for the quarter, up from $54,177,000 in the previous quarter, reflecting a growth of 4.9%[30] - Return on average equity (GAAP) was 6.25% for the quarter, down from 6.70% in the previous quarter[31] Merger and Acquisition - The merger with The First Bancshares, Inc. was completed on April 1, 2025, adding approximately$ 8.0 billion in assets, including $5.4 billion in loans and$ 6.5 billion in deposits[4] - The company completed a merger with The First Bancshares, Inc., which is expected to enhance operational efficiency and customer retention[23] Asset and Liability Management - Total assets as of March 31, 2025, reached $18,271,381,000, up from$ 18,034,868,000 at the end of 2024[13] - Total liabilities rose to $15,544,276,000 as of March 31, 2025, compared to$ 15,356,550,000 at the end of 2024[13] - Shareholders' equity increased to $2,727,105,000 in Q1 2025, compared to$ 2,678,318,000 in Q4 2024[14] - Average shareholders' equity (GAAP) rose to $2,692,681,000, an increase of 1.3% from$ 2,656,885,000 in the previous quarter[30] Loan and Deposit Growth - Loans increased by $170.6 million linked quarter, representing an annualized net loan growth of 5.4%[7] - Deposits increased by$ 199.5 million linked quarter, with noninterest-bearing deposits making up 24.0% of total deposits[7] - Total deposits increased to $14,772,095,000 in Q1 2025, compared to$ 14,572,612,000 in Q4 2024, marking a growth of 1.37%[13] - Loans held for investment increased to $13,055,593,000 in Q1 2025, compared to$ 12,885,020,000 in Q4 2024, representing a growth of 1.32%[13] Noninterest Income and Expense - Noninterest income rose by $2.2 million linked quarter, driven by increased mortgage banking income and gains on the sale of SBA loans[4] - Total noninterest income for Q1 2025 was$ 36,395,000, an increase from $34,218,000 in Q4 2024[11] - The company reported total noninterest expense of$ 113,876,000 for Q1 2025, a slight decrease from $114,747,000 in Q4 2024[11] - Noninterest expense for Q1 2025 was$ 113,876,000, slightly down from $114,747,000 in Q4 2024[32] Credit Quality - The provision for credit losses was$ 4.8 million for Q1 2025, up $2.6 million linked quarter[7] - Nonperforming loans to total loans decreased to 0.76% at March 31, 2025, compared to 0.88% at December 31, 2024[7] - Nonperforming loans decreased to$ 98,733 as of March 31, 2025, down from $113,275 as of December 31, 2024, indicating a reduction of 12.83%[17] - The allowance for credit losses on loans was$ 203,931,000 as of March 31, 2025, slightly up from $201,756,000 at the end of 2024[13] Operational Efficiency - The adjusted efficiency ratio improved to 64.43% in Q1 2025 from 65.82% in Q4 2024[32] - Pre-provision net revenue to average assets (non-GAAP) was 1.28%, up from 1.16% in the previous quarter, indicating improved efficiency[31] Economic and Strategic Considerations - Renasant Corporation's management emphasizes the importance of monitoring economic conditions and competitive pressures as part of their strategic planning[23] - The company operates 280 banking, lending, mortgage, and wealth management offices throughout the Southeast, with nationwide factoring and asset-based lending services[21]