Renasant Corp. Q3 2024 Financials Revealed

TL;DR

RENASANT CORP (RNST) Q3 2024 REPORT: INTEREST INCOME UP, MORTGAGE FEES DETAILED. HEALTHY BANKING OPERATIONS.

AI Summary

Renasant Corp. reported its third-quarter results for the period ending September 30, 2024. The company's filing details its financial performance, including assets, liabilities, and income streams such as interest and fee income from loans and leases. Specific figures for mortgage banking fees and other assets/liabilities are also provided.

Why It Matters

This filing provides insight into the financial health and operational performance of Renasant Corp., a commercial bank, which can impact its customers, investors, and the broader financial market.

Risk Assessment

Risk Level: medium — As a financial institution, Renasant Corp. is subject to various market and regulatory risks inherent in the banking sector.

Key Numbers

• 2024 Q3 — Reporting Period (Indicates the specific quarter for which financial results are reported.)
• 12/31 — Fiscal Year End (Specifies the end date of the company's fiscal year.)

Key Players & Entities

• RENASANT CORP (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• 20241106 (date) — Filing date of the report
• TUPELO, MS (location) — Company headquarters and mailing address

FAQ

Key Financial Figures

• $5.00 — ange on which registered Common stock, $5.00 par value per share RNST The New York S

Filing Documents

• rnst-20240930.htm (10-Q) — 5451KB
• rnst9302024ex311.htm (EX-31.1) — 9KB
• rnst9302024ex312.htm (EX-31.2) — 9KB
• rnst9302024ex321.htm (EX-32.1) — 5KB
• rnst9302024ex322.htm (EX-32.2) — 6KB
• 0000715072-24-000186.txt ( ) — 25815KB
• rnst-20240930.xsd (EX-101.SCH) — 76KB
• rnst-20240930_cal.xml (EX-101.CAL) — 163KB
• rnst-20240930_def.xml (EX-101.DEF) — 475KB
• rnst-20240930_lab.xml (EX-101.LAB) — 1000KB
• rnst-20240930_pre.xml (EX-101.PRE) — 774KB
• rnst-20240930_htm.xml (XML) — 7399KB

Financial Information

PART I Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets 1 Consolidated Statements of Income 2 Consolidated Statements of Comprehensive Income 3 Consolidated Statements of Changes in Shareholders' Equity 4 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 47

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 73

Controls and Procedures

Item 4. Controls and Procedures 73

Other Information

PART II Other Information

Risk Factors

Item 1A. Risk Factors 74

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 77

Other Information

Item 5. Other Information 78

Exhibits

Item 6. Exhibits 78

SIGNATURES

SIGNATURES 80 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS Renasant Corporation and Subsidiaries Consolidated Balance Sheets (In Thousands, Except Share Data) (Unaudited) September 30, 2024 December 31, 2023 Assets Cash and due from banks $ 228,937 $ 206,680 Interest-bearing balances with banks 1,046,683 594,671 Cash and cash equivalents 1,275,620 801,351 Securities held to maturity (net of allowance for credit losses of $ 32 at each of September 30, 2024 and December 31, 2023) (fair value of $ 1,068,968 and $ 1,121,830 , respectively) 1,150,531 1,221,464 Securities available for sale, at fair value 764,844 923,279 Loans held for sale, at fair value 291,735 179,756 Loans held for investment, net of unearned income 12,627,648 12,351,230 Allowance for credit losses on loans ( 200,378 ) ( 198,578 ) Loans, net 12,427,270 12,152,652 Premises and equipment, net 280,550 283,195 Other real estate owned, net 9,136 9,622 Goodwill 988,898 991,665 Other intangible assets, net 15,238 18,795 Bank-owned life insurance 389,138 382,584 Mortgage servicing rights 71,990 91,688 Other assets 293,890 304,484 Total assets $ 17,958,840 $ 17,360,535 Liabilities and shareholders' equity Liabilities Deposits Noninterest-bearing $ 3,529,801 $ 3,583,675 Interest-bearing 10,979,950 10,493,110 Total deposits 14,509,751 14,076,785 Short-term borrowings 108,732 307,577 Long-term debt 433,177 429,400 Other liabilities 249,102 249,390 Total liabilities 15,300,762 15,063,152 Shareholders' equity Preferred stock, $ 0.01 par value – 5,000,000 shares authorized; no shares issued and outstanding — — Common stock, $ 5.00 par value – 150,000,000 shares authorized; 66,484,225 and 59,296,725 shares issued, respectively; 63,564,028 and 56,142,207 shares outstanding, respectively 332,421 296,483 Treasury stock, at cost – 2,920,197 and 3,154,518 shares, respectively ( 97,251 ) ( 105,249 ) Additional paid-in capital 1,488,678 1,308,281 Retained earnings 1,063,324 952,124 Accumulated other compre

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 1 – Summary of Significant Accounting Policies (In Thousands) Nature of Operations : Renasant Corporation (referred to herein as the "Company") owns and operates Renasant Bank ("Renasant Bank" or the "Bank"), Renasant Insurance, Inc., Park Place Capital Corporation and Continental Republic Capital, LLC (doing business as "Republic Business Credit"). On July 1, 2024, the Bank sold substantially all of the assets of Renasant Insurance, Inc. Through its subsidiaries, the Company offers a diversified range of financial, wealth management and fiduciary services to its retail and commercial customers from offices located throughout the Southeast and offers factoring and asset-based lending on a nationwide basis. Basis of Presentation : The accompanying unaudited consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information regarding the Company's significant accounting policies, refer to the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the "SEC") on February 23, 2024. Use of Estimates : The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ fr

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 2 – Securities (In Thousands, Except Number of Securities) The amortized cost and fair value of securities available for sale were as follows as of the dates presented in the tables below. There was no allowance for credit losses allocated to any of the Company's available for sale securities as of September 30, 2024 or December 31, 2023. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2024 Obligations of states and political subdivisions $ 20,310 $ 130 $ ( 1,878 ) $ 18,562 Residential mortgage backed securities: Government agency mortgage backed securities 191,650 374 ( 19,177 ) 172,847 Government agency collateralized mortgage obligations 408,364 — ( 71,481 ) 336,883 Commercial mortgage backed securities: Government agency mortgage backed securities 6,010 — ( 466 ) 5,544 Government agency collateralized mortgage obligations 137,474 192 ( 19,224 ) 118,442 Other debt securities 114,637 605 ( 2,676 ) 112,566 $ 878,445 $ 1,301 $ ( 114,902 ) $ 764,844 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2023 Obligations of states and political subdivisions $ 36,374 $ 119 $ ( 1,883 ) $ 34,610 Residential mortgage backed securities: Government agency mortgage backed securities 301,400 172 ( 24,968 ) 276,604 Government agency collateralized mortgage obligations 485,164 — ( 85,883 ) 399,281 Commercial mortgage backed securities: Government agency mortgage backed securities 6,029 — ( 637 ) 5,392 Government agency collateralized mortgage obligations 161,299 24 ( 21,965 ) 139,358 Other debt securities 72,383 109 ( 4,458 ) 68,034 $ 1,062,649 $ 424 $ ( 139,794 ) $ 923,279 8 Table of Contents Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) The amortized cost and fair value of securities held to maturity were as follows as of the dates presented: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2024 Obligations of states and political subdivisions $ 285,450 $ 38 $ ( 34,861 ) $ 250,627 Residential mortgage backed securities Government agency mortgage backed securities 386,654 14 ( 11,742 ) 374,926 Government agency collateralized mortgage obligations 363,095 — ( 23,736 ) 339,359 Commercial mortgage backed securities: Government agency mortgage backed securities 16,966 — ( 2,404 ) 14,562 Government agency collateralized mortgage obligations 43,966 — ( 6,326 ) 37,640 Other debt securities 54,432 — ( 2,578 ) 51,854 $ 1,150,563 $ 52 $ ( 81,647 ) $ 1,068,968 Allowance for credit losses - held to maturity securities ( 32 ) Held to maturity securities, net of allowance for credit losses $ 1,150,531 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2023 Obligations of states and political subdivisions $ 288,154 $ 74 $ ( 33,688 ) $ 254,540 Residential mortgage backed securities Government agency mortgage backed securities 426,264 — ( 20,314 ) 405,950 Government agency collateralized mortgage obligations 387,208 — ( 31,670 ) 355,538 Commercial mortgage backed securities: Government agency mortgage backed securities 16,983 — ( 2,972 ) 14,011 Government agency collateralized mortgage obligations 44,514 — ( 6,977 ) 37,537 Other debt securities 58,373 — ( 4,119 ) 54,254 $ 1,221,496 $ 74 $ ( 99,740 ) $ 1,121,830 Allowance for credit losses - held to maturity securities ( 32 ) Held to maturity securities, net of allowance for credit losses $ 1,221,464 Securities sold during the nine months ended September 30, 2024 and 2023 are presented in the tables below. With respect to the securities sold during the first nine months ended September 30, 2024, the Company in

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Carrying Value Immediately Prior to Sale Net Proceeds Impairment (Recognized in December 2023) Nine months ended September 30, 2024 Obligations of states and political subdivisions $ 12,301 $ 11,360 $ ( 941 ) Residential mortgage backed securities: Government agency mortgage backed securities 107,389 95,922 ( 11,467 ) Government agency collateralized mortgage obligations 48,300 43,990 ( 4,310 ) Commercial mortgage backed securities: Government agency collateralized mortgage obligations 28,547 25,913 ( 2,634 ) $ 196,537 $ 177,185 $ ( 19,352 ) Carrying Value Immediately Prior to Sale Net Proceeds Impairment Nine months ended September 30, 2023 Obligations of other U.S. Government agencies and corporations $ 170,000 $ 164,915 $ ( 5,085 ) Obligations of states and political subdivisions 104,950 99,439 ( 5,511 ) Residential mortgage backed securities: Government agency mortgage backed securities 137,196 130,602 ( 6,594 ) Government agency collateralized mortgage obligations 54,028 51,101 ( 2,927 ) Commercial mortgage backed securities: Government agency mortgage backed securities 5,048 4,825 ( 223 ) Government agency collateralized mortgage obligations 40,197 38,099 ( 2,098 ) $ 511,419 $ 488,981 $ ( 22,438 ) At September 30, 2024 and December 31, 2023, securities with a carrying value of $ 796,621 and $ 880,715 , respectively, were pledged to secure government, public and trust deposits. Securities with a carrying value of $ 27,542 and $ 14,329 were pledged as collateral for short-term borrowings and derivative instruments at September 30, 2024 and December 31, 2023, respectively. The amortized cost and fair value of securities at September 30, 2024 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties. 10 Table of Contents Renasant Corporation

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Held to Maturity Available for Sale Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 1,308 $ 1,293 $ 998 $ 1,046 Due after one year through five years 6,268 5,963 42,107 42,171 Due after five years through ten years 139,202 125,714 35,012 32,414 Due after ten years 193,104 169,511 50,312 49,462 Residential mortgage backed securities: Government agency mortgage backed securities 386,654 374,926 191,650 172,847 Government agency collateralized mortgage obligations 363,095 339,359 408,364 336,883 Commercial mortgage backed securities: Government agency mortgage backed securities 16,966 14,562 6,010 5,544 Government agency collateralized mortgage obligations 43,966 37,640 137,474 118,442 Other debt securities — — 6,518 6,035 $ 1,150,563 $ 1,068,968 $ 878,445 $ 764,844 11 Table of Contents Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) The following tables present the age of gross unrealized losses and fair value by investment category for which an allowance for credit losses has not been recorded as of the dates presented: Less than 12 Months 12 Months or More Total # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Available for Sale: September 30, 2024 Obligations of states and political subdivisions — $ — $ — 7 $ 13,278 $ ( 1,878 ) 7 $ 13,278 $ ( 1,878 ) Residential mortgage backed securities: Government agency mortgage backed securities 2 3,914 ( 61 ) 34 152,229 ( 19,116 ) 36 156,143 ( 19,177 ) Government agency collateralized mortgage obligations — — — 37 336,883 ( 71,481 ) 37 336,883 ( 71,481 ) Commercial mortgage backed securities: Government agency mortgage backed securities — — — 2 5,543 ( 466 ) 2 5,543 ( 466 ) Government agency collateralized mortgage obligations — — — 25 107,597 ( 19,224 ) 25 107,597 ( 19,224 ) Other debt securities — — — 18 34,337 ( 2,676 ) 18 34,337 ( 2,676 ) Total 2 $ 3,914 $ ( 61 ) 123 $ 649,867 $ ( 114,841 ) 125 $ 653,781 $ ( 114,902 ) December 31, 2023 Obligations of states and polit

View Full Filing

View this 10-Q filing on SEC EDGAR