Renasant (RNST) - 2024 Q4 - Annual Results

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]