Renasant Corporation Announces Earnings for the First Quarter of 2025

Core Viewpoint - Renasant Corporation reported solid profitability and growth in loans and deposits for Q1 2025, despite a slight decrease in net income compared to the previous quarter. The completion of the merger with The First Bancshares is expected to enhance profit performance and market presence [1][2]. Earnings - Net income for Q1 2025 was $41.5 million, down from $44.7 million in Q4 2024 but up from $39.4 million in Q1 2024. Basic and diluted EPS were both $0.65, compared to $0.70 in the previous quarter and the same quarter last year. Adjusted diluted EPS (non-GAAP) was $0.66, down from $0.73 in Q4 2024 but unchanged from Q1 2024 [1][6][10]. Acquisition - The merger with The First Bancshares was completed on April 1, 2025. The First operated 116 locations and had approximately $8.0 billion in assets, including $5.4 billion in loans and $6.5 billion in deposits at the time of acquisition [2]. Balance Sheet - Total assets as of March 31, 2025, were $18.27 billion, an increase from $18.03 billion at the end of 2024. Loans held for investment increased to $13.06 billion, up from $12.89 billion in the previous quarter [17][21]. Capital and Stock Repurchase Program - Book value per share increased by 1.6% to $42.79, while tangible book value per share (non-GAAP) rose by 2.7% to $27.07. The company has a $100 million stock repurchase program in effect through October 2025, with no buyback activity reported in Q1 2025 [5][7][12]. Net Interest Income and Margin - Net interest income for Q1 2025 was $137.4 million, up $1.9 million from the previous quarter. The net interest margin improved to 3.45%, an increase of 9 basis points linked quarter [6][18]. Noninterest Income and Expense - Noninterest income increased by $2.2 million linked quarter to $36.4 million, driven by higher mortgage banking income. Noninterest expense decreased by $0.9 million to $113.9 million, with a notable reduction in merger and conversion expenses [6][14]. Credit Quality - The provision for credit losses was $4.8 million, up $2.6 million linked quarter. The allowance for credit losses on loans to total loans ratio was 1.56%, down one basis point from the previous quarter. Nonperforming loans to total loans decreased to 0.76% from 0.88% [9][22].