Q3 2024 Renasant Corp Earnings Call Transcript
Key Points
- Renasant Corp (RNST) reported strong financial performance for the third quarter with earnings of $72.5 million or $1.18 per diluted share.
- The company successfully completed the sale of its insurance agency, resulting in an after-tax gain of $39 million.
- Net interest income increased by $6 million on a linked-quarter basis, driven by higher loan yields and effective deposit cost management.
- Renasant Corp (RNST) experienced significant growth in traditional deposits, increasing by over $285 million from the second quarter.
- The merger with The First is progressing well, with regulatory applications filed and shareholder approvals obtained, expected to close in the first half of 2025.
- Adjusted noninterest income decreased by $2.8 million quarter-over-quarter, primarily due to the loss of insurance commissions following the sale of the insurance agency.
- Income from the mortgage division decreased by $1.3 million on a linked-quarter basis due to a higher fallout percentage and a decrease in gain on sale margin.
- Total noninterest expense was $122 million for the third quarter, with merger and conversion expenses contributing to the increase.
- Criticized loans and total nonperforming assets increased due to the downgrade of a few larger loans, particularly in the senior housing and non-medical office sectors.
- The company anticipates modest negative impacts on net interest margin due to potential future rate cuts.
Good day, and welcome to the Renasant Corporation's third-quarter earnings conference call and webcast. (Operator Instructions) Please note this event is being recorded.
I would like now to turn the conference over to Kelly Hutcheson, Chief Accounting Officer for Renasant. Please go ahead.
Good morning, and thank you for joining us for Renasant Corporation's 2024 quarterly webcast and conference call. Participating in the call today are members of Renasant's executive management team.
Before we begin, please note that many of our comments during this call will be forward-looking statements, which involve risk and uncertainty. There are many factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements. Such factors include, but are not limited to, changes in the mix and cost of our funding sources, interest rate fluctuation, regulatory changes, portfolio performance and other factors discussed
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