Renasant (RNST) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income was $44.7 million, with diluted EPS of $0.70 and adjusted EPS of $0.73, reflecting stable profitability and capping a transformative year marked by the pending merger with The First Bancshares, Inc., expected to close in the first half of 2025.

• Loans grew by $257.4 million (8.1% annualized), and deposits increased by $62.9 million, despite a $126.8 million reduction in brokered deposits.

• Maintained focus on disciplined loan growth, deposit pricing, and steady credit performance while preparing for integration.

• Noninterest income decreased $55.1 million sequentially, primarily due to a $53.3 million gain on the sale of the insurance agency recognized in Q3.

• Maintained a positive outlook for continued growth and operational momentum into 2025.

Financial highlights

• Net interest income for Q4 2024 was $135.5 million, up $1.9 million sequentially; net interest margin held steady at 3.36%.

• Noninterest expense decreased $7.2 million sequentially, with merger and conversion expenses at $2.1 million for Q4.

• Book value per share was $42.13; tangible book value per share was $26.36, both rising sequentially.

• Allowance for credit losses on loans to total loans was 1.57%; nonperforming loans to total loans decreased to 0.88%.

• Net loan charge-offs were $1.7 million, or 0.05% of average loans annualized.

Outlook and guidance

• Expect modest net interest margin expansion in 2025, reversing prior guidance for compression, due to better-than-expected deposit pricing and stable loan yields.

• Project 2%-3% increase in expenses for 2025, with ongoing focus on cost control despite some volatility from health and fraud losses.

• Management expects continued focus on integration of The First Bancshares, Inc. and realization of cost savings.

• The acquisition of The First Bancshares is expected to accelerate profitability improvement and provide meaningful EPS accretion.

• Forward-looking statements highlight risks related to integration, economic conditions, and regulatory changes.