Renasant (US:RNST)2026-01-28 16:02Financial Data and Key Metrics Changes - Renasant Corporation's adjusted earnings per share for 2025 were $3.06, an 11% increase year-over-year [6] - Adjusted return on average assets (ROA) grew from 94 basis points in 2024 to 110 basis points in 2025 [6] - Adjusted efficiency ratio improved by approximately 900 basis points year-over-year to 57.46% [6] - Adjusted return on tangible equity increased from 11.5% in 2024 to 13.79% in 2025 [6] - Net income for the fourth quarter was $78.9 million, or $0.83 per diluted share [8] - Adjusted earnings for the quarter, excluding merger charges, were $86.9 million, or $0.91 per diluted share [8] Business Line Data and Key Metrics Changes - Loans increased by $21.5 million on a linked quarter basis, representing a 0.4% annualized growth [8] - Deposits rose by $48.5 million from the third quarter, or 0.9% annualized [9] - Non-interest income for the fourth quarter was $51.1 million, a linked quarter increase of $5.1 million [11] - Non-interest expense for the fourth quarter was $170.8 million, with a linked quarter decrease of $6.2 million when excluding merger and conversion expenses [11] Market Data and Key Metrics Changes - The company sold approximately $117 million of loans acquired from The First, which were not considered core to Renasant's business [8] - The allowance for credit losses (ACL) as a percentage of total loans declined by 2 basis points quarter-over-quarter to 1.54% [9] Company Strategy and Development Direction - Renasant aims to create a high-performing company leveraging opportunities in strong economic regions [4] - The company is focused on maintaining momentum and improving efficiency post-merger with The First [4] - Management emphasized the importance of balancing cost savings from the merger with investments in talent for future growth [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the banking industry's changes and Renasant's ability to capitalize on opportunities [13] - The company anticipates continued organic loan and deposit growth in 2026, targeting mid-single-digit growth [31] - Management acknowledged the potential for elevated payoffs impacting loan growth but remains confident in long-term performance [94] Other Important Information - The company recorded a credit loss provision on loans of $10.9 million, with net charge-offs of $9.1 million [9] - All regulatory capital ratios remain above required minimums, indicating a well-capitalized status [9] Q&A Session Summary Question: Can you walk us through the expense outlook for the year? - Management indicated expectations for a $2-$3 million reduction in core expenses for Q1, similar to Q4 [20][21] Question: What are the expectations for loan growth and market share? - Management maintained guidance for mid-single-digit loan growth, with potential upside due to market disruption [31][34] Question: How does the company view capital deployment, particularly regarding buybacks? - Management indicated that buybacks are currently the most attractive capital use, with plans to continue into 2026 [46][48] Question: What is the outlook for net interest margin (NIM)? - Management expects NIM to remain stable, with modest growth in net interest income as the balance sheet grows [56] Question: Can you provide details on the loan sale and future loan sales? - The recent loan sale involved a portfolio deemed non-core, and no additional sales are anticipated in the near term [64][66]