Renasant (RNST) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 was $72.5 million, with diluted EPS at $1.18, up from $0.69 in Q2 2024[2] - Net income for the quarter was $72,455,000, up from $41,833,000 in the same quarter last year, indicating a growth of 73.2%[6] - Net income for the third quarter of 2024 was $72,455,000, compared to $38,846,000 in the previous quarter, representing an increase of 86.4%[28] - Basic earnings per share rose to $1.18 for the quarter, compared to $0.75 in the same quarter last year, reflecting a growth of 57.3%[6] - Diluted earnings per share (GAAP) rose to $1.18 for the quarter ended September 30, 2024, up from $0.69 in the previous quarter, representing a significant increase of 71%[31] Income and Revenue - Net interest income for Q3 2024 was $133.6 million, an increase of $6.0 million from the previous quarter[3] - Total interest income for the quarter ended September 30, 2024, was $229,043,000, an increase from $205,677,000 in the same quarter last year, representing a growth of 11.3%[6] - Net interest income after provision for credit losses was $130,063,000 for the quarter, compared to $122,768,000 in the same quarter last year, reflecting a year-over-year increase of 5.3%[6] - Noninterest income rose by $50.5 million quarter-over-quarter, primarily due to a $53.3 million pre-tax gain from the sale of the insurance agency[3] - Noninterest income surged to $89,299,000 for the quarter, significantly higher than $38,200,000 in the same quarter last year, marking an increase of 134%[6] - Total noninterest income for the quarter ended September 30, 2024, was $89,299,000, a significant increase from $38,200,000 in the same quarter last year, representing a growth of 133.4%[9] Expenses and Efficiency - Total noninterest expense for the quarter was $121,983,000, up from $108,369,000 in the same quarter last year, indicating an increase of 12.6%[9] - The efficiency ratio decreased to 54.73% for the quarter, down from 64.38% in the same quarter last year, indicating improved operational efficiency[7] - The efficiency ratio (GAAP) improved to 54.73% in Q3 2024 compared to 67.31% in Q2 2024[33] - The company incurred merger and conversion-related expenses of $11,273,000 during the quarter, reflecting ongoing strategic initiatives[9] Assets and Deposits - Total assets reached $17,958,840,000 as of September 30, 2024, up from $17,181,621,000 a year ago, marking an increase of 4.5%[12] - Cash and cash equivalents increased to $1,275,620,000 as of September 30, 2024, compared to $741,156,000 a year earlier, showing a growth of 72%[11] - Total deposits increased by $254.5 million on a linked quarter basis, with noninterest bearing deposits representing 24.3% of total deposits[4] - Total deposits rose to $14,509,751,000, compared to $14,157,110,000 in the same quarter last year, reflecting a growth of 2.5%[12] Loans and Credit Quality - Loans increased by $22.9 million, reflecting a 0.7% annualized net loan growth[4] - Nonperforming loans to total loans increased to 0.94% as of September 30, 2024, compared to 0.78% at June 30, 2024[5] - The allowance for credit losses on loans was $200,378,000, slightly up from $197,773,000 a year ago, indicating a 0.8% increase[11] - The company reported a net loan charge-off of $703 thousand, a decrease from $5,481 thousand in the previous quarter, reflecting improved loan performance[17] - Nonperforming loans rose to $119,223 thousand, up from $98,035 thousand in the prior quarter, indicating a deterioration in credit quality[17] Capital and Ratios - The common equity tier 1 capital ratio improved to 12.88% as of September 30, 2024, compared to 10.46% a year ago, indicating stronger capital position[8] - The total risk-based capital ratio increased to 17.32% as of September 30, 2024, up from 14.91% in the same quarter last year, reflecting enhanced financial stability[8] - Shareholders' equity increased to $2,658,078,000 as of September 30, 2024, compared to $2,233,323,000 a year earlier, representing a growth of 19%[12] Strategic Initiatives - The merger with The First Bancshares, Inc. was approved by shareholders, with completion expected in the first half of 2025[3] - The company plans to expand its operations through the acquisition of The First Bancshares, Inc., aiming to enhance its market presence[22] - The company highlighted the impact of technological changes and cybersecurity risks as significant factors affecting future operations[24]