Renasant (US:RNST)2023-08-04 20:10Financial Position - Total assets increased to $17,224,342 as of June 30, 2023, from $16,988,176 at December 31, 2022, reflecting a growth of approximately 1.39%[166] - Total loans, excluding loans held for sale, rose to $11,930,516 at June 30, 2023, compared to $11,578,304 at December 31, 2022, marking an increase of about 3.03%[172] - Total deposits increased to $14,095,361 at June 30, 2023, from $13,486,966 at December 31, 2022, representing a growth of approximately 4.52%[174] - Public fund deposits increased to $1,850,108 at June 30, 2023, from $1,760,460 at December 31, 2022, representing a slight increase of about 5.09%[177] - Total borrowings as of June 30, 2023, were $257,305, down from $712,232 at December 31, 2022, representing a decrease of 63.8%[178] - Long-term debt as of June 30, 2023, was $429,630, slightly up from $428,133 at December 31, 2022[178] - Total shareholders' equity increased to $2,208,628 at June 30, 2023, from $2,136,016 at December 31, 2022[285] Loan and Credit Quality - Nonperforming loans increased to $91,760 million as of June 30, 2023, from $56,876 million as of December 31, 2022, marking a 61.4% increase[247] - The allowance for credit losses on loans was $194,391 as of June 30, 2023, compared to $166,131 a year earlier, reflecting an increase in the loan portfolio[240] - The provision for credit losses was $3,000 in Q2 2023, compared to $2,000 in Q2 2022, indicating a response to loan growth and economic conditions[240] - Total net charge-offs for the six months ended June 30, 2023, were $8,633 million, compared to $3,188 million for the same period in 2022, representing an increase of 171%[243] - The coverage ratio for allowance for credit losses on loans to nonperforming loans was 211.85% as of June 30, 2023, down from 373.21% a year earlier[248] Income and Expenses - Net income for Q2 2023 was $28,643, down from $39,678 in Q2 2022, with EPS decreasing from $0.71 to $0.51[182] - For the first six months of 2023, net income was $74,721, slightly up from $73,225 in the same period of 2022, with EPS increasing from $1.30 to $1.33[182] - Net interest income for Q2 2023 was $130,216, compared to $113,515 in Q2 2022, reflecting a growth of 14.7%[186] - Noninterest income decreased to $17,226 for Q2 2023 from $37,214 in Q2 2022, primarily due to a $22,438 loss on the sale of securities[207] - Noninterest expense totaled $109,165 for Q2 2023, up from $98,194 in Q2 2022, reflecting increased operational costs[217] Interest Rates and Income - Interest income on a tax equivalent basis increased to $200,035 and $386,834 for the three and six months ended June 30, 2023, compared to $125,226 and $237,171 for the same periods in 2022, primarily due to interest rate increases by the Federal Reserve[195] - Interest expense surged to $66,950 for the second quarter of 2023, compared to $9,905 for the same period in 2022, reflecting the impact of rising interest rates[202] - The average yield on loans held for investment increased to 5.93% in Q2 2023 from 4.12% in Q2 2022[188] - The total impact to interest income on loans held for investment was $1,238 for the three months ended June 30, 2023, reflecting the effects of problem loans and purchase accounting adjustments[198] Capital Ratios - Renasant Corporation's Common Equity Tier 1 Capital Ratio as of June 30, 2023, is 10.30%, exceeding the minimum requirement of 6.50%[289] - Renasant Bank's Total Risk-Based Capital Ratio is 13.27% as of June 30, 2023, above the minimum requirement of 10.00%[289] - The Tier 1 Leverage Ratio for Renasant Corporation is 9.22% as of June 30, 2023, surpassing the minimum requirement of 5.00%[289] - Renasant Corporation's Total Risk-Based Capital Ratio increased from 14.63% on December 31, 2022, to 14.76% on June 30, 2023[289] Risk Management - The Company’s interest rate risk management includes the use of derivative financial instruments to mitigate exposure[262] - The Asset/Liability Committee (ALCO) actively monitors interest rate sensitivity and liquidity risk to maximize net interest income[257] - The Company’s liquidity management focuses on meeting cash flow requirements for depositors and borrowers[263] Other Financial Metrics - The efficiency ratio for Q2 2023 was 72.63%, up from 64.37% in Q2 2022, indicating a decrease in productivity[227] - The estimated amount of uninsured and uncollateralized deposits at June 30, 2023 was $3,885,983[270] - The company has loan commitments of $3,268,716 and standby letters of credit of $117,786 as of June 30, 2023[279] - The total other real estate owned increased to $5,120 million as of June 30, 2023, from $1,763 million at the beginning of the year[255]