Renasant Corporation Announces Earnings for the Third Quarter of 2023

TUPELO, Miss., Oct. 24, 2023 (GLOBE NEWSWIRE) -- Renasant Corporation (: RNST) (the “Company”) today announced earnings results for the third quarter of 2023.

“We are pleased with our third quarter results of solid loan growth, good asset quality, an increase in core deposits and expense control,” remarked C. Mitchell Waycaster, Chief Executive Officer of the Company. “The Company’s focus remains on maintaining a strong balance sheet, and we believe we are well-positioned to take advantage of opportunities that may arise.”

Quarterly Highlights

Earnings

• Net income for the third quarter of 2023 was $42.3 million with diluted EPS of $0.75
• Net interest income (fully tax equivalent) for the third quarter of 2023 was $130.8 million, down $2.3 million on a linked quarter basis
• For the third quarter of 2023, net interest margin was 3.38%, down 7 basis points on a linked quarter basis
• Cost of total deposits was 198 basis points for the third quarter of 2023, up 48 basis points on a linked quarter basis
• Noninterest income increased $21.0 million on a linked quarter basis. The Company recognized pre-tax losses of $22.4 million on securities sales in the second quarter of 2023 and used the sale proceeds to pay down FHLB borrowings. The Company’s wealth management and insurance lines of business continued to produce solid results during the third quarter of 2023
• The mortgage division generated $0.5 billion in interest rate lock volume in the third quarter of 2023. Gain on sale margin was 1.55% for the third quarter of 2023, down 11 basis points on a linked quarter basis
• Noninterest expense decreased $1.5 million on a linked quarter basis. Lower salaries and benefits and professional fees contributed to the decrease
  

Balance Sheet

• Loans increased $237.5 million on a linked quarter basis, which represents 7.9% annualized net loan growth
• The securities portfolio decreased $69.3 million on a linked quarter basis, due to net cash outflows during the quarter of $52.1 million and a negative fair market value adjustment in our available-for-sale portfolio of $17.2 million
• Deposits at September 30, 2023 increased $61.7 million on a linked quarter basis. Brokered deposits decreased $323 million on a linked quarter basis to $757 million at September 30, 2023. Noninterest bearing deposits decreased $144.8 million on a linked quarter basis and represented 26.4% of total deposits at September 30, 2023
  

Capital and Liquidity

• Book value per share and tangible book value per share (non-GAAP)⁽¹⁾ increased 1.1% and 2.2%, respectively, on a linked quarter basis
• The Company has a $100 million stock repurchase program that is in effect through October 2024; there was no buyback activity during the third quarter of 2023

Credit Quality

• The Company recorded a provision for credit losses on loans of $5.3 million and a recovery of credit losses on unfunded commitments (included in noninterest expense) of $0.7 million for the third quarter of 2023
• The ratio of allowance for credit losses on loans to total loans was stable at 1.63% at September 30, 2023
• The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 282.24% at September 30, 2023, compared to 211.85% at June 30, 2023
• Net loan charge-offs for the third quarter of 2023 were $1.9 million, or 0.06% of average loans on an annualized basis
• Nonperforming loans to total loans decreased to 0.58% at September 30, 2023 compared to 0.77% at June 30, 2023 and criticized loans (which include classified and special mention loans) to total loans decreased to 2.27% at September 30, 2023, compared to 2.32% at June 30, 2023
  

_{⁽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

_{⁽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