Renasant (US:RNST)2025-11-07 17:43Financial Position - Total assets increased to $26,726,165 at September 30, 2025, from $18,034,868 at December 31, 2024, reflecting an increase of $7,979,299 due to the acquisition of The First[197]. - Total deposits increased to $21,424,555 as of September 30, 2025, up from $14,572,612 at December 31, 2024, reflecting a growth of 47.5%[206]. - Total shareholders' equity increased to $3,825,778 at September 30, 2025, from $2,678,318 at December 31, 2024, driven by the merger with The First and current period earnings[312]. - The estimated amount of uninsured and uncollateralized deposits at September 30, 2025 was $6,878,118[297]. Loans and Credit Quality - Total loans, excluding loans held for sale, rose to $19,025,521 at September 30, 2025, up from $12,885,020 at December 31, 2024, with an increase of $5,171,236 attributed to the merger[203]. - The largest concentration of loans was in non-owner occupied commercial mortgage term loans, comprising 32.17% of total loans at September 30, 2025[203]. - The allowance for credit losses totaled $297,591, representing an increase from $201,756 as of December 31, 2024[268]. - The provision for credit losses on loans for the first nine months of 2025 was $87,100, significantly higher than $8,148 for the same period in 2024[270]. - Net charge-offs for the nine months ended September 30, 2025, amounted to $16,268, compared to $6,348 for the same period in 2024, indicating a rise in credit losses[272]. Income and Expenses - Net income for Q3 2025 was $59,788, down from $72,455 in Q3 2024, resulting in a decrease in basic and diluted EPS from $1.18 to $0.63[211]. - Noninterest income decreased to $46,026 in Q3 2025 from $89,299 in Q3 2024, primarily due to a prior year gain on the sale of the Company's insurance agency[232]. - Noninterest expense for the third quarter of 2025 was $183,830 million, compared to $121,983 million in 2024, primarily due to $38,764 million in merger-related expenses[241]. - Salaries and employee benefits increased to $98,982 million for the third quarter of 2025, up from $71,307 million in 2024[242]. Interest Income and Margin - Net interest income for the three months ended September 30, 2025, was $223,520, compared to $130,998 for the same period in 2024, representing a year-over-year increase of 70.4%[215]. - For the three months ended September 30, 2025, interest income was $355,709, an increase from $231,621 in the same period of 2024, reflecting a growth of 53.5%[221]. - The net interest margin for the three months ended September 30, 2025, was 3.85%, up from 3.36% in the same period of 2024[220]. - The total interest-earning assets increased to $23,527,519 for the three months ended September 30, 2025, from $15,807,569 in 2024, marking a 48.8% rise[221]. Merger Impact - The company completed its merger with The First on April 1, 2025, integrating its operations and expanding its market presence[196]. - The addition of The First's loan portfolio and strong organic loan growth contributed significantly to the increase in net interest income[220]. - The company incurred merger and conversion related expenses of $17,494 in Q3 2025, impacting diluted EPS by $(0.14)[213]. - The company assumed $298,250 of FHLB advances due to the merger with The First, contributing to increased short-term borrowings[209]. Risk Management - The company entered into interest rate contracts with notional amounts of $1,602,805 to manage interest rate risk exposure[307]. - The projected impact of a +100 basis point change in interest rates would result in a 2.53% increase in Economic Value Equity (EVE) and a 2.47% increase in earnings at risk (net interest income) for the 1-12 month period[288]. - The company has opted for a two-year delay in the estimated impact of CECL on regulatory capital, with a three-year transitional period starting January 1, 2022[316]. Capital Ratios - Renasant Corporation's Common Equity Tier 1 capital ratio as of September 30, 2025, is 11.04%, exceeding the minimum requirement of 6.50%[316]. - Renasant Bank's Total Risk-Based Capital Ratio is 13.05% as of September 30, 2025, above the minimum requirement of 10.00%[316]. - The Tier 1 Leverage Ratio for Renasant Corporation is 9.46% as of September 30, 2025, surpassing the minimum requirement of 5.00%[316].