Renasant Corporation Announces Earnings for the Second Quarter of 2025

Core Viewpoint - Renasant Corporation reported its earnings results for the second quarter of 2025, highlighting significant progress in the merger with The First Bancshares, Inc. and its impact on financial performance. Earnings Summary - Net income for Q2 2025 was $1.0 million, significantly impacted by merger-related expenses of $20.5 million and a Day 1 acquisition provision for credit losses of $66.6 million [7][11] - Basic and diluted EPS were both $0.01, while adjusted diluted EPS (non-GAAP) was $0.69 [7][10] - The company generated net organic loan growth of $311.6 million for the quarter, representing a 6.9% annualized growth rate [7] Merger Details - The merger with The First Bancshares, Inc. was completed on April 1, 2025, with The First operating 116 locations and having $7.9 billion in assets [3] - The merger contributed to a significant increase in net interest income, which rose to $222.7 million, up $85.3 million from the previous quarter [7] Balance Sheet Highlights - Total assets reached $26.6 billion as of June 30, 2025, up from $18.3 billion in the previous quarter [18] - Total deposits increased to $21.6 billion, with noninterest-bearing deposits rising to $5.4 billion, representing 24.8% of total deposits [18][19] Credit Quality - The provision for credit losses was $81.3 million, including a $66.6 million Day 1 acquisition provision [11] - The allowance for credit losses on loans to total loans ratio was 1.57% as of June 30, 2025 [11] Noninterest Income and Expense - Noninterest income for Q2 2025 was $48.3 million, an increase of $11.9 million linked quarter, primarily due to the merger [7][15] - Noninterest expense rose to $183.2 million, primarily driven by merger-related costs [7][15] Performance Ratios - Return on average assets was 0.02% for Q2 2025, while adjusted return on average assets (non-GAAP) was 1.01% [13] - The efficiency ratio (fully taxable equivalent) was 67.59% for the quarter [13] Capital and Stock Repurchase Program - The company has a $100.0 million stock repurchase program in effect through October 2025 [7]