TUPELO, Miss., April 23, 2024 (GLOBE NEWSWIRE) -- Renasant Corporation (NYSE:RNST) (the "Company") today announced earnings results for the first quarter of 2024.     (Dollars in thousands, except earnings per share) Three Months Ended   Mar 31, 2024 Dec 31, 2023 Mar 31, 2023 Net income and earnings per share:       Net income $39,409   $28,124   $46,078   After-tax loss on sale of securities   —     (15,711 )   —   Basic EPS   0.70     0.50     0.82   Diluted EPS   0.70     0.50     0.82   Adjusted diluted EPS (Non-GAAP)(1)   0.65     0.76     0.82   Impact to diluted EPS from after-tax loss on sale of securities (including impairments)   —     0.28     —                       "The quarter's results reflect solid performance across the company, including good loan and deposit growth," remarked C. Mitchell Waycaster, Chief Executive Officer of the Company. "We continue to build balance sheet strength and believe this will keep Renasant well positioned for additional growth." Quarterly Highlights Earnings Net income for the first quarter of 2024 was $39.4 million; diluted EPS was $0.70 and adjusted diluted EPS (non-GAAP)(1) was $0.65 Net interest income (fully tax equivalent) for the first quarter of 2024 was $125.9 million, down $2.7 million on a linked quarter basis For the first quarter of 2024, net interest margin was 3.30%, down 3 basis points on a linked quarter basis Cost of total deposits was 2.35% for the first quarter of 2024, up 18 basis points on a linked quarter basis Noninterest income increased $21.0 million on a linked quarter basis. In the fourth quarter of 2023, the Company recognized impairment charges of $19.4 million as a result of its determination to sell a portion of its available-for-sale securities; there was no such impairment in the first quarter of 2024. Noninterest income for the fourth quarter of 2023 also included the receipt of $2.3 million related to Renasant's participation in a recovery agreement, with minimal recoveries in the first quarter of 2024 Mortgage banking income increased $4.8 million on a linked quarter basis. The mortgage division generated $0.4 billion in interest rate lock volume in the first quarter of 2024, an increase of $0.1 billion on a linked quarter basis. Gain on sale margin was 1.78% for the first quarter of 2024, up 64 basis points on a linked quarter basis. In addition, during the first quarter of 2024, the Company sold a portion of its mortgage servicing rights ("MSR"), recognizing a gain of $3.5 million Noninterest expense increased $1.0 million on a linked quarter basis. The Company contributed $1.1 million to certain charitable organizations which were recorded in the line item "advertising and public relations" expense. These contributions qualify as tax credits and will reduce income tax expense dollar for dollar in 2024. In the first quarter of 2024, the Company recorded expense of $0.7 million related to the FDIC special assessment, as compared to the $2.7 million recorded in the fourth quarter of 2023 Balance Sheet Loans increased $149.3 million on a linked quarter basis, representing 4.9% annualized net loan growth Securities decreased $181.1 million on a linked quarter basis primarily driven by the sale of a portion of the Company's available-for-sale securities for proceeds of $177.2 million. A portion of the proceeds was used to purchase higher yielding securities, while the remainder, along with other cash flows from the securities portfolio, was used to fund loan growth. Deposits at March 31, 2024 increased $160.4 million on a linked quarter basis. Brokered deposits decreased $119.2 million on a linked quarter basis to $342.3 million at March 31, 2024. Noninterest bearing deposits decreased $67.5 million on a linked quarter basis and represented 24.7% of total deposits at March 31, 2024 Capital and Liquidity Book value per share and tangible book value per share (non-GAAP)(1) increased 0.8% and 1.7%, 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 first quarter of 2024 Credit Quality The Company recorded a provision for credit losses of $2.4 million for the first quarter of 2024 The ratio of allowance for credit losses on loans to total loans was constant at 1.61% at March 31, 2024 compared to December 31, 2023 The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 270.87% at March 31, 2024, compared to 286.26% at December 31, 2023 Net loan charge-offs for the first quarter of 2024 were $0.2 million, or 0.01% of average loans on an annualized basis Nonperforming loans to total loans increased to 0.59% at March 31, 2024 compared to 0.56% at December 31, 2023, and criticized loans (which include classified and special mention loans) to total loans increased to 2.76% at March 31, 2024, compared to 2.16% at December 31, 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 (Dollars in thousands, except per share data) Three Months Ended   Mar 31,2024 Dec 31,2023 Sep 30,2023 Jun 30,2023 Mar 31,2023 Interest income           Loans held for investment $ 192,390   $ 188,535   $ 181,129   $ 173,198   $ 161,787   Loans held for sale   2,308     3,329     3,751     2,990     1,737   Securities   10,700     10,728     10,669     14,000     15,091   Other   7,781     7,839     10,128     6,978     5,430   Total interest income   213,179     210,431     205,677     197,166     184,045   Interest expense           Deposits   82,613     77,168     70,906     51,391     32,866   Borrowings   7,276     7,310     7,388     15,559     15,404   Total interest expense   89,889     84,478     78,294     66,950     48,270   Net interest income   123,290     125,953     127,383     130,216     135,775   Provision for credit losses           Provision for loan losses   2,638     2,518     5,315     3,000     7,960   Recovery of unfunded commitments   (200 )   —     (700 )   (1,000 )   (1,500 ) Total provision for credit losses   2,438     2,518     4,615     2,000     6,460   Net interest income after provision for credit losses   120,852     123,435     122,768     128,216     129,315   Noninterest income   41,381     20,356     38,200     17,226     37,293   Noninterest expense   112,912     111,880     108,369     110,165     109,208   Income before income taxes   49,321     31,911     52,599     35,277     57,400   Income taxes   9,912     3,787     10,766     6,634     11,322   Net income $ 39,409   $ 28,124   $ 41,833   $ 28,643   $ 46,078               Adjusted net income (non-GAAP)(1) $ 36,572   $ 42,887   $ 41,833   $ 46,728   $ 46,078   Adjusted pre-provision net revenue ("PPNR") (non-GAAP)(1) $ 48,231   $ 52,614   $ 57,214   $ 59,715   $ 63,860               Basic earnings per share $ 0.70   $ 0.50   $ 0.75   $ 0.51   $ 0.82   Diluted earnings per share   0.70     0.50     0.74     0.51     0.82   Adjusted diluted earnings per share (non-GAAP)(1)   0.65     0.76     0.74     0.83     0.82   Average basic shares outstanding   56,208,348     56,141,628     56,138,618     56,107,881     56,008,741   Average diluted shares outstanding   56,531,078     56,611,217     56,523,887     56,395,653     56,270,219   Cash dividends per common share $ 0.22   $ 0.22   $ 0.22   $ 0.22   $ 0.22   (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   Mar 31,2024 Dec 31,2023 Sep 30,2023 Jun 30,2023 Mar 31,2023 Return on average assets 0.92 % 0.65 % 0.96 % 0.66 % 1.09 % Adjusted return on average assets (non-GAAP)(1) 0.86   0.99   0.96   1.08   1.09   Return on average tangible assets (non-GAAP)(1) 1.00   0.71   1.05   0.73   1.19   Adjusted return on average tangible assets (non-GAAP)(1) 0.93   1.08   1.05   1.18   1.19   Return on average equity 6.85   4.93   7.44   5.18   8.55   Adjusted return on average equity (non-GAAP)(1) 6.36   7.53   7.44   8.45   8.55   Return on average tangible equity (non-GAAP)(1) 12.45   9.26   13.95   9.91   16.29   Adjusted return on average tangible equity (non-GAAP)(1) 11.58   13.94   13.95   15.94   16.29   Efficiency ratio (fully taxable equivalent) 67.52   75.11   64.38   73.29   62.11   Adjusted efficiency ratio (non-GAAP)(1) 68.23   66.18   63.60   62.98   61.30   Dividend payout ratio 31.43   44.00   29.33   43.14   26.83                         Capital and Balance Sheet Ratios   As of   Mar 31,2024 Dec 31,2023 Sep 30,2023 Jun 30,2023 Mar 31,2023 Shares outstanding   56,304,860     56,142,207     56,140,713     56,132,478     56,073,658   Market value per share $ 31.32   $ 33.68   $ 26.19   $ 26.13   $ 30.58   Book value per share   41.25     40.92     39.78     39.35     39.01   Tangible book value per share (non-GAAP)(1)   23.32     22.92     21.76     21.30     20.92   Shareholders' equity to assets   13.39 %   13.23 %   13.00 %   12.82 %   12.52 % Tangible common equity ratio (non-GAAP)(1)   8.04     7.87     7.55     7.37     7.13   Leverage ratio   9.75     9.62     9.48     9.22     9.18   Common equity tier 1 capital ratio   10.59     10.52     10.46     10.30     10.19   Tier 1 risk-based capital ratio   11.37     11.30     11.25     11.09     10.98   Total risk-based capital ratio   15.00     14.93     14.91     14.76     14.68   (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. Noninterest Income and Noninterest Expense (Dollars in thousands) Three Months Ended   Mar 31,2024 Dec 31,2023 Sep 30,2023 Jun 30,2023 Mar 31,2023 Noninterest income           Service charges on deposit accounts $ 10,506   $ 10,603   $ 9,743   $ 9,733   $ 9,120   Fees and commissions   3,949     4,130     4,108     4,987     4,676   Insurance commissions   2,716     2,583     3,264     2,809     2,446   Wealth management revenue   5,669     5,668     5,986     5,338     5,140   Mortgage banking income   11,370     6,592     7,533     9,771     8,517   Net losses on sales of securities (including impairments)   —     (19,352 )   —     (22,438 )   —   Gain on extinguishment of debt   56     620     —     —     —   BOLI income   2,691     2,589     2,469     2,402     3,003   Other   4,424     6,923     5,097     4,624     4,391   Total noninterest income $ 41,381   $ 20,356   $ 38,200   $ 17,226   $ 37,293   Noninterest expense           Salaries and employee benefits $ 71,470   $ 71,841   $ 69,458   $ 70,637   $ 69,832   Data processing   3,807     3,971     3,907     3,684     3,633   Net occupancy and equipment   11,389     11,653     11,548     11,865     11,405   Other real estate owned   107     306     (120 )   51     30   Professional fees   3,348     2,854     3,338     4,012     3,467   Advertising and public relations   4,886     3,084     3,474     3,482     4,686   Intangible amortization   1,212     1,274     1,311     1,369     1,426   Communications   2,024     2,026     2,006     2,226     1,980   Other   14,669     14,871     13,447     12,839     12,749   Total noninterest expense $ 112,912   $ 111,880   $ 108,369   $ 110,165   $ 109,208                                   Mortgage Banking Income (Dollars in thousands) Three Months Ended   Mar 31,2024 Dec 31,2023 Sep 30,2023 Jun 30,2023 Mar 31,2023 Gain on sales of loans, net $ 4,535   $ 1,860   $ 3,297   $ 4,646   $ 4,770   Fees, net   1,854     2,010     2,376     2,859     1,806   Mortgage servicing income, net   4,981     2,722     1,860     2,266     1,941   Total mortgage banking income $ 11,370   $ 6,592   $ 7,533