Renasant Corporation Announces Earnings for the Second Quarter of 2025
TUPELO, Miss., July 22, 2025 (GLOBE NEWSWIRE) -- Renasant Corporation (NYSE:RNST) (the "Company") today announced earnings results for the second quarter of 2025.
(Dollars in thousands, except earnings per share)
Three Months Ended
Six Months Ended
Jun 30,2025
Mar 31,2025
Jun 30,2024
Jun 30,2025
Jun 30,2024
Net income and earnings per share:
Net income
$
1,018
$
41,518
$
38,846
$
42,536
$
78,255
Merger and conversion related expenses (net of tax)
(15,935
)
(593
)
—
(16,527
)
—
Day 1 acquisition provision (net of tax)
(50,026
)
—
—
(50,026
)
—
Basic EPS
0.01
0.65
0.69
0.54
1.39
Diluted EPS
0.01
0.65
0.69
0.53
1.38
Adjusted diluted EPS (Non-GAAP)(1)
0.69
0.66
0.69
1.36
1.33
Impact to diluted EPS from merger and conversion related expenses (net of tax)
(0.17
)
(0.01
)
—
(0.21
)
—
Impact to diluted EPS from Day 1 acquisition provision (net of tax)
(0.53
)
—
—
(0.63
)
—
"The results for the quarter reflect significant progress on the merger and integration of The First Bancshares, Inc.," remarked Kevin D. Chapman, Chief Executive Officer of the Company. "Our employees continue to work diligently on bringing two strong companies together to better serve our customers."
Quarterly Highlights
Merger with The First Bancshares, Inc.
On April 1, 2025, the Company completed its merger with The First Bancshares, Inc. ("The First"). As of the effective date of the merger, The First operated 116 locations throughout Louisiana, Mississippi, Alabama, Georgia and Florida and, net of purchase accounting adjustments, had $7.9 billion in assets, $5.2 billion in loans, and $6.4 billion in deposits
Earnings
Net income for the second quarter of 2025 was $1.0 million, which includes merger and conversion expenses of $20.5 million and Day 1 acquisition provision for credit losses of $66.6 million; diluted EPS and adjusted diluted EPS (non-GAAP)(1) were $0.01 and $0.69, respectively
Net interest income (fully tax equivalent) for the second quarter of 2025 was $222.7 million, up $85.3 million linked quarter, primarily due to the merger with The First
For the second quarter of 2025, net interest margin was 3.85%, up 40 basis points linked quarter. Adjusted net interest margin (non-GAAP)(1) was 3.58%, up 16 basis points linked quarter
Cost of total deposits was 2.12% for the second quarter of 2025, down 10 basis points linked quarter
Noninterest income increased $11.9 million linked quarter, primarily due to the merger with The First
Mortgage banking income increased $3.1 million linked quarter. Gain on sale of mortgage servicing rights ("MSRs") was $1.5 million. The mortgage division generated $679.6 million in interest rate lock volume in the second quarter of 2025, up $47.5 million linked quarter. Gain on sale margin was 1.87% for the second quarter of 2025, up 45 basis points linked quarter
Noninterest expense increased $69.3 million linked quarter, primarily due to the merger with The First. Merger and conversion expenses and core deposit intangible amortization increased $19.7 million and $7.8 million, respectively, linked quarter
Balance Sheet
The combined company generated net organic loan growth of $311.6 million for the quarter, or 6.9% annualized
Securities increased $1.4 billion linked quarter, which includes $1.5 billion of securities acquired from The First. In the second quarter of 2025, the Company sold a portion of the acquired securities for proceeds of $686.5 million, which were reinvested in higher yielding assets
The combined company generated net organic deposit growth of $361.3 million for the quarter, or 6.8% annualized. Noninterest bearing deposits increased $1.8 billion linked quarter, primarily due to the merger with The First, and represented 24.8% of total deposits at June 30, 2025
Capital and Stock Repurchase Program
Book value per share and tangible book value per share (non-GAAP)(1) decreased 7.1% and 14.7%, respectively, linked quarter, due to the merger with The First
The Company has a $100.0 million stock repurchase program in effect through October 2025 under which the Company is authorized to repurchase outstanding shares of its common stock either in open market purchases or privately-negotiated transactions. There was no buyback activity during the second quarter of 2025
Credit Quality
The Company recorded a provision for credit losses of $81.3 million for the second quarter of 2025, which includes a $66.6 million Day 1 acquisition provision for credit losses and unfunded commitments
The ratio of the allowance for credit losses on loans to total loans was 1.57% at June 30, 2025, up one basis point linked quarter; net loan charge-offs for the second quarter of 2025 were $12.1 million
The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 204.97% at June 30, 2025, compared to 206.55% at March 31, 2025
Nonperforming loans to total loans remained at 0.76% at June 30, 2025, and criticized loans (which include classified and Special Mention loans) to total loans increased to 2.66% at June 30, 2025, compared to 2.45% at March 31, 2025, primarily due to the merger with The First
(1) This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading "Non-GAAP Financial Measures" explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.
Income Statement
(Dollars in thousands, except per share data)
Three Months Ended
Six Months Ended
Jun 30,2025
Mar 31,2025
Dec 31,2024
Sep 30,2024
Jun 30,2024
Jun 30,2025
Jun 30,2024
Interest income
Loans held for investment
$
301,794
$
196,566
$
199,240
$
202,655
$
198,397
$
498,360
$
390,787
Loans held for sale
4,639
3,008
3,564
4,212
3,530
7,647
5,838
Securities
28,408
12,117
10,510
10,304
10,410
40,525
21,110
Other
9,057
8,639
12,030
11,872
7,874
17,696
15,655
Total interest income
343,898
220,330
225,344
229,043
220,211
564,228
433,390
Interest expense
Deposits
111,921
79,386
85,571
90,787
87,621
191,307
170,234
Borrowings
13,118
6,747
6,891
7,258
7,564
19,865
14,840
Total interest expense
125,039
86,133
92,462
98,045
95,185
211,172
185,074
Net interest income
218,859
134,197
132,882
130,998
125,026
353,056
248,316
Provision for credit losses
Provision for loan losses
75,400
2,050
3,100
1,210
4,300
77,450
6,938
Provision for (Recovery of) unfunded commitments
5,922
2,700
(500
)
(275
)
(1,000
)
8,622
(1,200
)
Total provision for credit losses
81,322
4,750
2,600
935
3,300
86,072
5,738
Net interest income after provision for credit losses
137,537
129,447
130,282
130,063
121,726
266,984
242,578
Noninterest income
48,334
36,395
34,218
89,299
38,762
84,729
80,143
Noninterest expense
183,204
113,876
114,747
121,983
111,976
297,080
224,888
Income before income taxes
2,667
51,966
49,753
97,379
48,512
54,633
97,833
Income taxes
1,649
10,448
5,006
24,924
9,666
12,097
19,578
Net income
$
1,018
$
41,518
$
44,747
$
72,455
$
38,846
$
42,536
$
78,255
Adjusted net income (non-GAAP)(1)
$
65,877
$
42,111
$
46,458
$
42,960
$
38,846
$
107,987
$
75,421
Adjusted pre-provision net revenue ("PPNR") (non-GAAP)(1)
$
103,001
$
57,507
$
54,177
$
56,238
$
51,812
$
160,508
$
100,043
Basic earnings per share
$
0.01
$
0.65
$
0.70
$
1.18
$
0.69
$
0.54
$
1.39
Diluted earnings per share
0.01
0.65
0.70
1.18
0.69
0.53
1.38
Adjusted diluted earnings per share (non-GAAP)(1)
0.69
0.66
0.73
0.70
0.69
1.36
1.33
Average basic shares outstanding
94,580,927
63,666,419
63,565,437
61,217,094
56,342,909
79,209,073
56,275,628
Average diluted shares outstanding
95,136,160
64,028,025
64,056,303
61,632,448
56,684,626
79,671,775
56,607,947
Cash dividends per common share
$
0.22
$
0.22
$
0.22
$
0.22
$
0.22
$
0.44
$
0.44
(1) This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading "Non-GAAP Financial Measures" explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.
Performance Ratios
Three Months Ended
Six Months Ended
Jun 30,2025
Mar 31,2025
Dec 31,2024
Sep 30,2024
Jun 30,2024
Jun 30,2025
Jun 30,2024
Return on average assets
0.02
%
0.94
%
0.99
%
1.63
%
0.90
%
0.39
%
0.91
%
Adjusted return on average assets (non-GAAP)(1)
1.01
0.95
1.03
0.97
0.90
0.98
0.88
Return on average tangible assets (non-GAAP)(1)
0.13
1.01
1.07
1.75
0.98
0.48
0.99
Adjusted return on average tangible assets (non-GAAP)(1)
1.18
1.02
1.11
1.05
0.98
1.12
0.96
Return on average equity
0.11
6.25
6.70
11.29
6.68
2.66
6.77
Adjusted return on average equity (non-GAAP)(1)
7.06
6.34
6.96
6.69
6.68
6.76
6.52
Return on average tangible equity (non-GAAP)(1)
1.43
10.16
10.97
18.83
12.04
5.24
12.25
Adjusted return on average tangible equity (non-GAAP)(1)
13.50
10.30
11.38
11.26
12.04
12.10
11.81
Efficiency ratio (fully taxable equivalent)
67.59
65.51
67.61
54.73
67.31
66.78
67.41
Adjusted efficiency ratio (non-GAAP)(1)
57.07
64.43
65.82
64.62
66.60
59.95
67.41
Dividend payout ratio
2200.00
33.85
31.43
18.64
31.88
81.48
31.65
Capital and Balance Sheet Ratios
As of
Jun 30,2025
Mar 31,2025
Dec 31,2024
Sep 30,2024
Jun 30,2024
Shares outstanding
95,019,311
63,739,467
63,565,690
63,564,028
56,367,924
Market value per share
$
35.93
$
33.93
$
35.75
$
32.50
$
30.54
Book value per share
39.77
42.79
42.13
41.82
41.77
Tangible book value per share (non-GAAP)(1)
23.10
27.07
26.36
26.02
23.89
Shareholders' equity to assets
14.19
%
14.93
%
14.85
%
14.80
%
13.45
%
Tangible common equity ratio (non-GAAP)(1)
8.77
9.99
9.84
9.76
8.16
Leverage ratio(2)
9.36
11.39
11.34
11.32
9.81
Common equity tier 1 capital ratio(2)
11.09
12.59
12.73
12.88
10.75
Tier 1 risk-based capital ratio(2)
11.09
13.35
13.50
13.67
11.53
Total risk-based capital ratio(2)
14.99
16.89
17.08
17.32
15.15
(1) This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading "Non-GAAP Financial Measures" explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.
(2) Preliminary
Noninterest Income and Noninterest Expense
(Dollars in thousands)
Three Months Ended
Six Months Ended
Jun 30,2025
Mar 31,2025
Dec 31,2024
Sep 30,2024
Jun 30,2024
Jun 30,2025
Jun 30,2024
Noninterest income
Service charges on deposit accounts
$
13,618
$
10,364
$
10,549
$
10,438
$
10,286
$
23,982
$
20,792
Fees and commissions
6,650
3,787
4,181
4,116
3,944
10,437
7,893
Insurance commissions
—
—
—
—
2,758
—
5,474
Wealth management revenue
7,345
7,067
6,371
5,835
5,684
14,412
11,353
Mortgage banking income
11,263
8,147
6,861
8,447
9,698
19,410
21,068
Gain on sale of insurance agency
—
—
—
53,349
—
—
—
Gain on extinguishment of debt
—
—
—
—
—
—
56
BOLI income
3,383
2,929
3,317
2,858
2,701
6,312
5,392
Other
6,075
4,101
2,939
4,256
3,691
10,176
8,115
Total noninterest income
$
48,334
$
36,395
$
34,218
$
89,299
$
38,762
$
84,729
$
80,143
Noninterest expense
Salaries and employee benefits
$
99,542
$
71,957
$
70,260
$
71,307
$
70,731
$
171,499
$
142,201
Data processing
5,438
4,089
4,145
4,133
3,945
9,527
7,752
Net occupancy and equipment
17,359
11,754
11,312
11,415
11,844
29,113
23,233
Other real estate owned
157
685
590
56
105
842
212
Professional fees
4,223
2,884
2,686
3,189
3,195
7,107
6,543
Advertising and public relations
4,490
4,297
3,840
3,677
3,807
8,787
8,693
Intangible amortization
8,884
1,080
1,133
1,160
1,186
9,964
2,398
Communications
3,184
2,033
2,067
2,176
2,112
5,217
4,136
Merger and conversion related expenses
20,479
791
2,076
11,273
—
21,270
—
Other
19,448
14,306
16,638
13,597
15,051
33,754
29,720
Total noninterest expense
$
183,204
$
113,876
$
114,747
$
121,983
$
111,976
$
297,080
$
224,888
Mortgage Banking Income
(Dollars in thousands)
Three Months Ended
Six Months Ended
Jun 30,2025
Mar 31,2025
Dec 31,2024
Sep 30,2024
Jun 30,2024
Jun 30,2025
Jun 30,2024
Gain on sales of loans, net
$
5,316
$
4,500
$
2,379
$
4,499
$
5,199
$
9,816
$
9,734
Fees, net
3,740
2,317
2,850
2,646
2,866
6,057
4,720
Mortgage servicing income, net
2,207
1,330
1,632
1,302
1,633
3,537
6,614
Total mortgage banking income
$
11,263
$
8,147
$
6,861
$
8,447
$
9,698
$
19,410
$
21,068
Balance Sheet
(Dollars in thousands)
As of
Jun 30,2025
Mar 31,2025
Dec 31,2024
Sep 30,2024
Jun 30,2024
Assets
Cash and cash equivalents
$
1,378,612
$
1,091,339
