Renasant (US:RNST)2024-11-06 21:23Financial Position - Total assets increased to $17,958,840 as of September 30, 2024, from $17,360,535 at December 31, 2023[169]. - Total liabilities and shareholders' equity reached $17,421,593, reflecting a stable financial position compared to $17,244,029 in 2023[197]. - Total shareholders' equity increased to $2,658,078 at September 30, 2024, compared to $2,297,383 at December 31, 2023, with a book value per share of $41.82[292]. Loans and Deposits - Total loans, excluding loans held for sale, rose to $12,627,648 at September 30, 2024, compared to $12,351,230 at December 31, 2023[177]. - Total loans as of September 30, 2024, were $12,627,648, an increase from $12,351,230 as of December 31, 2023, representing a growth of 2.24%[178]. - Total deposits increased to $14,509,751 as of September 30, 2024, compared to $14,076,785 at December 31, 2023, reflecting a growth of 3.07%[179]. - Public fund deposits increased to $2,185,034 as of September 30, 2024, from $1,866,495 at December 31, 2023, representing an increase of 17.05%[182]. Income and Earnings - Net income for Q3 2024 was $72,455, compared to $41,833 for Q3 2023, marking a year-over-year increase of 73.06%[188]. - Basic and diluted EPS for Q3 2024 were $1.18, up from $0.75 and $0.74 for Q3 2023, indicating a significant increase in earnings per share[188]. - Net interest income for the three months ended September 30, 2024, was $130,998, compared to $127,383 for the same period in 2023, showing a growth of 2.54%[192]. Expenses and Costs - The company incurred merger and conversion expenses of $11,273 pre-tax in Q3 2024, impacting EPS by $0.15[189]. - Noninterest expense increased to $121,983 million in Q3 2024 from $108,369 million in Q3 2023, primarily due to expenses related to the proposed merger with The First and the sale of Renasant Insurance assets[219]. - The cost of total deposits increased to 2.51% for the three months ended September 30, 2024, compared to 1.98% for the same period in 2023, reflecting competitive deposit rates in a high interest rate environment[208]. Interest Income and Expense - Interest income on a tax equivalent basis increased to $231,621 for the three months ended September 30, 2024, compared to $208,425 for the same period in 2023, driven by Federal Reserve interest rate increases[200]. - Total interest expense increased to $98,045 for the third quarter of 2024, up from $78,294 in the same period in 2023, and to $283,119 for the nine months ended September 30, 2024, compared to $193,514 in 2023[206]. - Total interest-earning assets for the three months ended September 30, 2024, were $15,807,569, generating interest income of $231,621, with a yield of 5.82%[194]. Credit Quality - Net charge-offs for the first nine months of 2024 were $6,348, or 0.07% of average loans, compared to $10,566, or 0.12% for the same period in 2023[236]. - The Company recorded a provision for credit losses on loans of $1,210 in Q3 2024 and $8,148 in the first nine months of 2024, compared to $5,315 and $16,275 in the same periods of 2023[247]. - Nonperforming loans as a percentage of total loans was 168.07% in the first nine months of 2024, down from 282.24% in the same period of 2023[247]. Mergers and Acquisitions - The company announced a proposed merger with The First Bancshares, Inc., expected to close in the first half of 2025, pending regulatory approvals[167]. - The company sold Renasant Insurance, Inc. for gross cash proceeds of $56,390, resulting in a positive after-tax impact of $34,092[165]. Capital and Liquidity - The Company’s Tier 1 capital to average assets ratio was 11.32% as of September 30, 2024, exceeding the well-capitalized minimum requirement of 5%[296]. - The Company’s total risk-based capital ratio was 17.32% as of September 30, 2024, well above the well-capitalized minimum requirement of 10%[296]. - Cash and cash equivalents rose to $1,275,620 million at September 30, 2024, compared to $741,156 million in 2023, driven by deposit growth and common stock offering proceeds[277]. Investment and Securities - The securities portfolio included $1,915,407 in total carrying value as of September 30, 2024, down from $2,144,775 at December 31, 2023[172]. - The company purchased $60,656 in investment securities during the nine months ended September 30, 2024, compared to $9,646 in the same period of 2023[172]. - The investment portfolio is expected to generate cash flow equal to approximately 11.64% of its carrying value within the next twelve months[271].