Renasant Corporation (RNST) Bundle
A Brief History of Renasant Corporation
Company Overview
Renasant Corporation, headquartered in Tupelo, Mississippi, operates as a bank holding company. As of September 30, 2024, it had total assets of $17.42 billion, with a focus on providing financial services to businesses and consumers across the Southeastern United States.
Recent Financial Performance
In the third quarter of 2024, Renasant Corporation reported a net income of $72.5 million, with diluted earnings per share (EPS) of $1.18. This compares to a net income of $38.8 million and diluted EPS of $0.69 in the previous quarter .
| Financial Metrics | Q3 2024 | Q2 2024 | Q1 2024 | Q3 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $72.5 | $38.8 | $39.4 | $41.8 |
| Diluted EPS | $1.18 | $0.69 | $0.70 | $0.74 |
| Return on Average Assets | 1.63% | 0.90% | 0.92% | 0.96% |
| Return on Average Equity | 11.29% | 6.68% | 6.85% | 7.44% |
Balance Sheet Highlights
As of September 30, 2024, Renasant's total loans amounted to $12.63 billion, reflecting a slight increase from $12.60 billion in the previous quarter. The company's total deposits rose to $10.72 billion, up from $10.46 billion.
| Balance Sheet Metrics | Q3 2024 | Q2 2024 | Q1 2024 | Q3 2023 |
|---|---|---|---|---|
| Total Assets (in billions) | $17.42 | $17.37 | $17.20 | $17.18 |
| Total Loans (in billions) | $12.63 | $12.60 | $12.50 | $12.17 |
| Total Deposits (in billions) | $10.72 | $10.46 | $10.38 | $9.72 |
Operational Developments
On July 29, 2024, Renasant announced its merger with The First Bancshares, Inc., approved by shareholders on October 22, 2024. This merger is expected to enhance Renasant's market presence and operational capabilities .
Market Position and Strategy
Renasant operates a diversified business model, focusing on commercial banking, wealth management, and insurance services. The company aims to leverage its regional expertise to improve customer service and expand its client base across its operational footprint.
Credit Quality and Risk Management
As of September 30, 2024, Renasant reported a nonperforming loans ratio of 0.94%, an increase from 0.78% in the previous quarter. The allowance for credit losses on loans was 1.59%, indicating a stable risk management framework.
| Credit Quality Metrics | Q3 2024 | Q2 2024 | Q1 2024 | Q3 2023 |
|---|---|---|---|---|
| Nonperforming Loans / Total Loans | 0.94% | 0.78% | 0.59% | 0.58% |
| Allowance for Credit Losses / Total Loans | 1.59% | 1.59% | 1.61% | 1.63% |
| Net Loan Charge-Offs (in millions) | $0.7 | $5.5 | $0.2 | $1.9 |
Conclusion of Financial Year 2024
Renasant Corporation's financial performance in 2024 has shown resilience amid challenging market conditions. The strategic merger with The First and strong operational metrics position the company for future growth.
A Who Owns Renasant Corporation (RNST)
Major Shareholders
As of 2024, Renasant Corporation (RNST) has a diverse ownership structure, including institutional investors, mutual funds, and individual shareholders. Below is the detailed list of major shareholders:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 5,621,460 | 8.83% |
| The Vanguard Group, Inc. | 5,417,820 | 8.51% |
| State Street Corporation | 3,412,390 | 5.34% |
| Wellington Management Group LLP | 2,978,760 | 4.66% |
| Invesco Ltd. | 1,968,220 | 3.08% |
| Other Institutions | 24,409,278 | 38.34% |
| Individual and Retail Investors | 19,110,000 | 29.24% |
Recent Share Issuance
On July 31, 2024, Renasant Corporation completed a public offering of 7,187,500 shares at a price of $32.00 per share, raising approximately $217 million after underwriting discounts.
Stock Performance
As of September 30, 2024, the market value per share of Renasant Corporation was $32.50. The company’s stock showed significant fluctuations due to market conditions and the recent merger announcements.
Merger Implications
Renasant Corporation is in the process of merging with The First Bancshares, Inc., which was approved by shareholders in October 2024. This merger is expected to impact the ownership structure significantly, as shares will be issued to The First's shareholders.
Ownership Changes and Trends
The total number of shares outstanding as of September 30, 2024, was 63,564,028. This represents an increase from previous quarters, reflecting the company's strategy to raise capital through equity financing.
Dividend Information
Renasant Corporation has maintained a consistent dividend payout of $0.22 per share. The dividend payout ratio as of September 30, 2024, was 18.64%.
Conclusion of Ownership Insights
The ownership landscape of Renasant Corporation is characterized by a mix of institutional and individual investors, with significant implications from the upcoming merger. The company continues to attract investment through strategic capital raises while maintaining a steady dividend policy.
Renasant Corporation (RNST) Mission Statement
Mission Statement Overview
Renasant Corporation aims to provide comprehensive financial solutions to its customers while maintaining a commitment to exceptional service and community involvement. The company's mission emphasizes integrity, responsiveness, and innovation in all aspects of its operations.
Financial Performance Metrics
As of the third quarter of 2024, Renasant Corporation reported significant financial metrics that reflect its performance and strategic initiatives.
| Metric | Value |
|---|---|
| Net Income | $72.5 million |
| Diluted EPS (GAAP) | $1.18 |
| Adjusted Diluted EPS (Non-GAAP) | $0.70 |
| Net Interest Income (Fully Tax Equivalent) | $133.6 million |
| Net Interest Margin | 3.36% |
| Total Deposits | $14.4 billion |
| Loans | $12.6 billion |
| Book Value per Share | $41.82 |
| Tangible Book Value per Share (Non-GAAP) | $26.02 |
| Return on Average Assets | 1.63% |
| Return on Average Equity | 11.29% |
Recent Strategic Initiatives
In July 2024, Renasant announced its merger with The First Bancshares, Inc., which received shareholder approval in October 2024. The merger aims to enhance the company's market presence and financial strength.
Additionally, Renasant completed a public offering of 7,187,500 shares of common stock at a price of $32.00 per share, generating approximately $217.0 million in net proceeds after underwriting discounts and expenses.
Community Engagement and Corporate Responsibility
Renasant Corporation places a strong emphasis on community service and engagement as part of its mission. The company actively participates in various community development initiatives and supports local organizations, reinforcing its commitment to making a positive impact in the communities it serves.
Future Outlook
Looking ahead, Renasant Corporation is focused on enhancing its service offerings and leveraging technology to meet the evolving needs of its customers. The company plans to continue its pursuit of growth through strategic partnerships and community involvement.
How Renasant Corporation (RNST) Works
Overview of Renasant Corporation
Renasant Corporation operates as a bank holding company, primarily through its subsidiary, Renasant Bank. The company provides a variety of financial services, including personal banking, business banking, and wealth management services.
Recent Financial Performance
As of the third quarter of 2024, Renasant Corporation reported the following financial highlights:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $72.5 million | $38.8 million | $41.8 million |
| Diluted EPS | $1.18 | $0.69 | $0.74 |
| Adjusted Diluted EPS | $0.70 | $0.69 | $0.74 |
| Net Interest Income | $133.6 million | $127.6 million | $130.1 million |
| Net Interest Margin | 3.36% | 3.31% | 3.36% |
| Noninterest Income | $89.3 million | $38.8 million | $41.4 million |
| Noninterest Expense | $122.0 million | $112.0 million | $112.9 million |
Balance Sheet Highlights
Renasant's balance sheet as of September 30, 2024, shows the following key figures:
| Metric | Amount |
|---|---|
| Total Assets | $17.7 billion |
| Total Loans | $12.6 billion |
| Total Deposits | $14.0 billion |
| Shareholders' Equity | $2.6 billion |
| Book Value per Share | $41.82 |
Loan Portfolio Breakdown
The composition of Renasant's loan portfolio as of September 30, 2024, is as follows:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial, Financial, Agricultural | $1,804,961 |
| Lease Financing | $98,159 |
| Real Estate - Construction | $1,198,838 |
| Real Estate - 1-4 Family Mortgages | $3,440,038 |
| Real Estate - Commercial Mortgages | $5,995,152 |
| Installment Loans to Individuals | $90,500 |
| Total Loans | $12,627,648 |
Credit Quality Metrics
Renasant's credit quality indicators as of September 30, 2024, are as follows:
| Metric | Value |
|---|---|
| Nonperforming Loans to Total Loans | 0.94% |
| Allowance for Credit Losses to Total Loans | 1.59% |
| Net Loan Charge-Offs | $0.7 million |
| Coverage Ratio (Allowance for Credit Losses to Nonperforming Loans) | 168.07% |
Recent Corporate Actions
Renasant Corporation has engaged in significant corporate activities, including:
- Announced merger with The First Bancshares, Inc. on July 29, 2024.
- Completed a public offering of 7,187,500 shares at $32.00 per share, netting approximately $217 million.
- Sold the assets of its insurance agency for $56.4 million on July 1, 2024, recognizing an after-tax gain of $34.1 million.
Stock Repurchase Program
On October 22, 2024, Renasant's Board approved a $100 million stock repurchase program to buy back shares in the open market or through private transactions.
Performance Ratios
The following performance ratios were reported for the third quarter of 2024:
| Metric | Value |
|---|---|
| Return on Average Assets | 1.63% |
| Return on Average Equity | 11.29% |
| Efficiency Ratio | 54.73% |
How Renasant Corporation (RNST) Makes Money
Core Revenue Streams
Renasant Corporation primarily generates revenue through two main streams: net interest income and noninterest income. As of the third quarter of 2024, net interest income was reported at $133.6 million, reflecting an increase of $6.0 million from the previous quarter. The net interest margin stood at 3.36%.
Net Interest Income
Net interest income is derived from the difference between interest earned on loans and interest paid on deposits. In Q3 2024, interest income from loans held for investment amounted to $202.7 million, while total interest expense was $98.0 million, leading to a net interest income of $130.998 million.
Loan Portfolio
As of September 30, 2024, Renasant's total loans reached $12.63 billion, with the following breakdown:
| Type of Loan | Amount ($ in thousands) |
|---|---|
| Commercial, financial, agricultural | 1,804,961 |
| Lease financing | 98,159 |
| Real estate - construction | 1,198,838 |
| Real estate - 1-4 family mortgages | 3,440,038 |
| Real estate - commercial mortgages | 5,995,152 |
| Installment loans to individuals | 90,500 |
| Total Loans | 12,627,648 |
Noninterest Income
Noninterest income for Q3 2024 totaled $89.3 million, significantly boosted by a $53.3 million pre-tax gain from the sale of its insurance agency. However, mortgage banking income saw a decline, generating $8.4 million.
Expenses and Efficiency
Renasant's noninterest expenses for the third quarter of 2024 were $121.983 million, which included merger-related expenses of $11.273 million. The efficiency ratio was reported at 54.73%, indicating the company's operational efficiency.
Capital Management
As of September 30, 2024, Renasant's shareholders’ equity was valued at $2.40 billion, with a book value per share of $41.82. The company announced a stock repurchase program worth $100 million to enhance shareholder value.
Market Performance
As of late 2024, Renasant's stock was trading at approximately $32.50 per share. The company’s dividend payout ratio was reported at 18.64%, showing a commitment to returning value to shareholders.
Credit Quality
The allowance for credit losses on loans stood at 1.59% of total loans as of September 30, 2024, reflecting a stable credit environment. Nonperforming loans increased to 0.94% during the same period.
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Article updated on 8 Nov 2024
Resources:
- Renasant Corporation (RNST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Renasant Corporation (RNST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Renasant Corporation (RNST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.