TUPELO, Miss., July 22, 2025 (GLOBE NEWSWIRE) -- Renasant Corporation (NYSE: RNST) (the “Company”) today announced earnings results for the second quarter of 2025.
| (Dollars in thousands, except earnings per share) | Three Months Ended | Six Months Ended | ||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | ||||||||||
| Net income and earnings per share: | ||||||||||||||
| Net income | $ | 1,018 | $ | 41,518 | $ | 38,846 | $ | 42,536 | $ | 78,255 | ||||
| Merger and conversion related expenses (net of tax) | (15,935 | ) | (593 | ) | — | (16,527 | ) | — | ||||||
| Day 1 acquisition provision (net of tax) | (50,026 | ) | — | — | (50,026 | ) | — | |||||||
| Basic EPS | 0.01 | 0.65 | 0.69 | 0.54 | 1.39 | |||||||||
| Diluted EPS | 0.01 | 0.65 | 0.69 | 0.53 | 1.38 | |||||||||
| Adjusted diluted EPS (Non-GAAP)(1) | 0.69 | 0.66 | 0.69 | 1.36 | 1.33 | |||||||||
| Impact to diluted EPS from merger and conversion related expenses (net of tax) | (0.17 | ) | (0.01 | ) | — | (0.21 | ) | — | ||||||
| Impact to diluted EPS from Day 1 acquisition provision (net of tax) | (0.53 | ) | — | — | (0.63 | ) | — | |||||||
“The results for the quarter reflect significant progress on the merger and integration of The First Bancshares, Inc.,” remarked Kevin D. Chapman, Chief Executive Officer of the Company. “Our employees continue to work diligently on bringing two strong companies together to better serve our customers.”
Quarterly Highlights
Merger with The First Bancshares, Inc.
- On April 1, 2025, the Company completed its merger with The First Bancshares, Inc. (“The First”). As of the effective date of the merger, The First operated 116 locations throughout Louisiana, Mississippi, Alabama, Georgia and Florida and, net of purchase accounting adjustments, had $7.9 billion in assets, $5.2 billion in loans, and $6.4 billion in deposits
Earnings
- Net income for the second quarter of 2025 was $1.0 million, which includes merger and conversion expenses of $20.5 million and Day 1 acquisition provision for credit losses of $66.6 million; diluted EPS and adjusted diluted EPS (non-GAAP)(1) were $0.01 and $0.69, respectively
- Net interest income (fully tax equivalent) for the second quarter of 2025 was $222.7 million, up $85.3 million linked quarter, primarily due to the merger with The First
- For the second quarter of 2025, net interest margin was 3.85%, up 40 basis points linked quarter. Adjusted net interest margin (non-GAAP)(1) was 3.58%, up 16 basis points linked quarter
- Cost of total deposits was 2.12% for the second quarter of 2025, down 10 basis points linked quarter
- Noninterest income increased $11.9 million linked quarter, primarily due to the merger with The First
- Mortgage banking income increased $3.1 million linked quarter. Gain on sale of mortgage servicing rights (“MSRs”) was $1.5 million. The mortgage division generated $679.6 million in interest rate lock volume in the second quarter of 2025, up $47.5 million linked quarter. Gain on sale margin was 1.87% for the second quarter of 2025, up 45 basis points linked quarter
- Noninterest expense increased $69.3 million linked quarter, primarily due to the merger with The First. Merger and conversion expenses and core deposit intangible amortization increased $19.7 million and $7.8 million, respectively, linked quarter
Balance Sheet
- The combined company generated net organic loan growth of $311.6 million for the quarter, or 6.9% annualized
- Securities increased $1.4 billion linked quarter, which includes $1.5 billion of securities acquired from The First. In the second quarter of 2025, the Company sold a portion of the acquired securities for proceeds of $686.5 million, which were reinvested in higher yielding assets
- The combined company generated net organic deposit growth of $361.3 million for the quarter, or 6.8% annualized. Noninterest bearing deposits increased $1.8 billion linked quarter, primarily due to the merger with The First, and represented 24.8% of total deposits at June 30, 2025
Capital and Stock Repurchase Program
- Book value per share and tangible book value per share (non-GAAP)(1) decreased 7.1% and 14.7%, respectively, linked quarter, due to the merger with The First
- The Company has a $100.0 million stock repurchase program in effect through October 2025 under which the Company is authorized to repurchase outstanding shares of its common stock either in open market purchases or privately-negotiated transactions. There was no buyback activity during the second quarter of 2025
Credit Quality
- The Company recorded a provision for credit losses of $81.3 million for the second quarter of 2025, which includes a $66.6 million Day 1 acquisition provision for credit losses and unfunded commitments
- The ratio of the allowance for credit losses on loans to total loans was 1.57% at June 30, 2025, up one basis point linked quarter; net loan charge-offs for the second quarter of 2025 were $12.1 million
- The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 204.97% at June 30, 2025, compared to 206.55% at March 31, 2025
- Nonperforming loans to total loans remained at 0.76% at June 30, 2025, and criticized loans (which include classified and Special Mention loans) to total loans increased to 2.66% at June 30, 2025, compared to 2.45% at March 31, 2025, primarily due to the merger with The First
(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 | Six Months Ended | |||||||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | |||||||||||||
| Interest income | |||||||||||||||||||
| Loans held for investment | $ | 301,794 | $ | 196,566 | $ | 199,240 | $ | 202,655 | $ | 198,397 | $ | 498,360 | $ | 390,787 | |||||
| Loans held for sale | 4,639 | 3,008 | 3,564 | 4,212 | 3,530 | 7,647 | 5,838 | ||||||||||||
| Securities | 28,408 | 12,117 | 10,510 | 10,304 | 10,410 | 40,525 | 21,110 | ||||||||||||
| Other | 9,057 | 8,639 | 12,030 | 11,872 | 7,874 | 17,696 | 15,655 | ||||||||||||
| Total interest income | 343,898 | 220,330 | 225,344 | 229,043 | 220,211 | 564,228 | 433,390 | ||||||||||||
| Interest expense | |||||||||||||||||||
| Deposits | 111,921 | 79,386 | 85,571 | 90,787 | 87,621 | 191,307 | 170,234 | ||||||||||||
| Borrowings | 13,118 | 6,747 | 6,891 | 7,258 | 7,564 | 19,865 | 14,840 | ||||||||||||
| Total interest expense | 125,039 | 86,133 | 92,462 | 98,045 | 95,185 | 211,172 | 185,074 | ||||||||||||
| Net interest income | 218,859 | 134,197 | 132,882 | 130,998 | 125,026 | 353,056 | 248,316 | ||||||||||||
| Provision for credit losses | |||||||||||||||||||
| Provision for loan losses | 75,400 | 2,050 | 3,100 | 1,210 | 4,300 | 77,450 | 6,938 | ||||||||||||
| Provision for (Recovery of) unfunded commitments | 5,922 | 2,700 | (500 | ) | (275 | ) | (1,000 | ) | 8,622 | (1,200 | ) | ||||||||
| Total provision for credit losses | 81,322 | 4,750 | 2,600 | 935 | 3,300 | 86,072 | 5,738 | ||||||||||||
| Net interest income after provision for credit losses | 137,537 | 129,447 | 130,282 | 130,063 | 121,726 | 266,984 | 242,578 | ||||||||||||
| Noninterest income | 48,334 | 36,395 | 34,218 | 89,299 | 38,762 | 84,729 | 80,143 | ||||||||||||
| Noninterest expense | 183,204 | 113,876 | 114,747 | 121,983 | 111,976 | 297,080 | 224,888 | ||||||||||||
| Income before income taxes | 2,667 | 51,966 | 49,753 | 97,379 | 48,512 | 54,633 | 97,833 | ||||||||||||
| Income taxes | 1,649 | 10,448 | 5,006 | 24,924 | 9,666 | 12,097 | 19,578 | ||||||||||||
| Net income | $ | 1,018 | $ | 41,518 | $ | 44,747 | $ | 72,455 | $ | 38,846 | $ | 42,536 | $ | 78,255 | |||||
| Adjusted net income (non-GAAP)(1) | $ | 65,877 | $ | 42,111 | $ | 46,458 | $ | 42,960 | $ | 38,846 | $ | 107,987 | $ | 75,421 | |||||
| Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1) | $ | 103,001 | $ | 57,507 | $ | 54,177 | $ | 56,238 | $ | 51,812 | $ | 160,508 | $ | 100,043 | |||||
| Basic earnings per share | $ | 0.01 | $ | 0.65 | $ | 0.70 | $ | 1.18 | $ | 0.69 | $ | 0.54 | $ | 1.39 | |||||
| Diluted earnings per share | 0.01 | 0.65 | 0.70 | 1.18 | 0.69 | 0.53 | 1.38 | ||||||||||||
| Adjusted diluted earnings per share (non-GAAP)(1) | 0.69 | 0.66 | 0.73 | 0.70 | 0.69 | 1.36 | 1.33 | ||||||||||||
| Average basic shares outstanding | 94,580,927 | 63,666,419 | 63,565,437 | 61,217,094 | 56,342,909 | 79,209,073 | 56,275,628 | ||||||||||||
| Average diluted shares outstanding | 95,136,160 | 64,028,025 | 64,056,303 | 61,632,448 | 56,684,626 | 79,671,775 | 56,607,947 | ||||||||||||
| Cash dividends per common share | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.44 | $ | 0.44 | |||||
(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 | Six Months Ended | ||||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | |||||||||
| Return on average assets | 0.02 | % | 0.94 | % | 0.99 | % | 1.63 | % | 0.90 | % | 0.39 | % | 0.91 | % | |
| Adjusted return on average assets (non-GAAP)(1) | 1.01 | 0.95 | 1.03 | 0.97 | 0.90 | 0.98 | 0.88 | ||||||||
| Return on average tangible assets (non-GAAP)(1) | 0.13 | 1.01 | 1.07 | 1.75 | 0.98 | 0.48 | 0.99 | ||||||||
| Adjusted return on average tangible assets (non-GAAP)(1) | 1.18 | 1.02 | 1.11 | 1.05 | 0.98 | 1.12 | 0.96 | ||||||||
| Return on average equity | 0.11 | 6.25 | 6.70 | 11.29 | 6.68 | 2.66 | 6.77 | ||||||||
| Adjusted return on average equity (non-GAAP)(1) | 7.06 | 6.34 | 6.96 | 6.69 | 6.68 | 6.76 | 6.52 | ||||||||
| Return on average tangible equity (non-GAAP)(1) | 1.43 | 10.16 | 10.97 | 18.83 | 12.04 | 5.24 | 12.25 | ||||||||
| Adjusted return on average tangible equity (non-GAAP)(1) | 13.50 | 10.30 | 11.38 | 11.26 | 12.04 | 12.10 | 11.81 | ||||||||
| Efficiency ratio (fully taxable equivalent) | 67.59 | 65.51 | 67.61 | 54.73 | 67.31 | 66.78 | 67.41 | ||||||||
| Adjusted efficiency ratio (non-GAAP)(1) | 57.07 | 64.43 | 65.82 | 64.62 | 66.60 | 59.95 | 67.41 | ||||||||
| Dividend payout ratio | 2200.00 | 33.85 | 31.43 | 18.64 | 31.88 | 81.48 | 31.65 | ||||||||
Capital and Balance Sheet Ratios
| As of | |||||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | |||||||||||
| Shares outstanding | 95,019,311 | 63,739,467 | 63,565,690 | 63,564,028 | 56,367,924 | ||||||||||
| Market value per share | $ | 35.93 | $ | 33.93 | $ | 35.75 | $ | 32.50 | $ | 30.54 | |||||
| Book value per share | 39.77 | 42.79 | 42.13 | 41.82 | 41.77 | ||||||||||
| Tangible book value per share (non-GAAP)(1) | 23.10 | 27.07 | 26.36 | 26.02 | 23.89 | ||||||||||
| Shareholders’ equity to assets | 14.19 | % | 14.93 | % | 14.85 | % | 14.80 | % | 13.45 | % | |||||
| Tangible common equity ratio (non-GAAP)(1) | 8.77 | 9.99 | 9.84 | 9.76 | 8.16 | ||||||||||
| Leverage ratio(2) | 9.36 | 11.39 | 11.34 | 11.32 | 9.81 | ||||||||||
| Common equity tier 1 capital ratio(2) | 11.09 | 12.59 | 12.73 | 12.88 | 10.75 | ||||||||||
| Tier 1 risk-based capital ratio(2) | 11.09 | 13.35 | 13.50 | 13.67 | 11.53 | ||||||||||
| Total risk-based capital ratio(2) | 14.99 | 16.89 | 17.08 | 17.32 | 15.15 | ||||||||||
(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.
(2) Preliminary
Noninterest Income and Noninterest Expense
| (Dollars in thousands) | Three Months Ended | Six Months Ended | |||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | |||||||||
| Noninterest income | |||||||||||||||
| Service charges on deposit accounts | $ | 13,618 | $ | 10,364 | $ | 10,549 | $ | 10,438 | $ | 10,286 | $ | 23,982 | $ | 20,792 | |
| Fees and commissions | 6,650 | 3,787 | 4,181 | 4,116 | 3,944 | 10,437 | 7,893 | ||||||||
| Insurance commissions | — | — | — | — | 2,758 | — | 5,474 | ||||||||
| Wealth management revenue | 7,345 | 7,067 | 6,371 | 5,835 | 5,684 | 14,412 | 11,353 | ||||||||
| Mortgage banking income | 11,263 | 8,147 | 6,861 | 8,447 | 9,698 | 19,410 | 21,068 | ||||||||
| Gain on sale of insurance agency | — | — | — | 53,349 | — | — | — | ||||||||
| Gain on extinguishment of debt | — | — | — | — | — | — | 56 | ||||||||
| BOLI income | 3,383 | 2,929 | 3,317 | 2,858 | 2,701 | 6,312 | 5,392 | ||||||||
| Other | 6,075 | 4,101 | 2,939 | 4,256 | 3,691 | 10,176 | 8,115 | ||||||||
| Total noninterest income | $ | 48,334 | $ | 36,395 | $ | 34,218 | $ | 89,299 | $ | 38,762 | $ | 84,729 | $ | 80,143 | |
| Noninterest expense | |||||||||||||||
| Salaries and employee benefits | $ | 99,542 | $ | 71,957 | $ | 70,260 | $ | 71,307 | $ | 70,731 | $ | 171,499 | $ | 142,201 | |
| Data processing | 5,438 | 4,089 | 4,145 | 4,133 | 3,945 | 9,527 | 7,752 | ||||||||
| Net occupancy and equipment | 17,359 | 11,754 | 11,312 | 11,415 | 11,844 | 29,113 | 23,233 | ||||||||
| Other real estate owned | 157 | 685 | 590 | 56 | 105 | 842 | 212 | ||||||||
| Professional fees | 4,223 | 2,884 | 2,686 | 3,189 | 3,195 | 7,107 | 6,543 | ||||||||
| Advertising and public relations | 4,490 | 4,297 | 3,840 | 3,677 | 3,807 | 8,787 | 8,693 | ||||||||
| Intangible amortization | 8,884 | 1,080 | 1,133 | 1,160 | 1,186 | 9,964 | 2,398 | ||||||||
| Communications | 3,184 | 2,033 | 2,067 | 2,176 | 2,112 | 5,217 | 4,136 | ||||||||
| Merger and conversion related expenses | 20,479 | 791 | 2,076 | 11,273 | — | 21,270 | — | ||||||||
| Other | 19,448 | 14,306 | 16,638 | 13,597 | 15,051 | 33,754 | 29,720 | ||||||||
| Total noninterest expense | $ | 183,204 | $ | 113,876 | $ | 114,747 | $ | 121,983 | $ | 111,976 | $ | 297,080 | $ | 224,888 | |
Mortgage Banking Income
| (Dollars in thousands) | Three Months Ended | Six Months Ended | |||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | |||||||||
| Gain on sales of loans, net | $ | 5,316 | $ | 4,500 | $ | 2,379 | $ | 4,499 | $ | 5,199 | $ | 9,816 | $ | 9,734 | |
| Fees, net | 3,740 | 2,317 | 2,850 | 2,646 | 2,866 | 6,057 | 4,720 | ||||||||
| Mortgage servicing income, net | 2,207 | 1,330 | 1,632 | 1,302 | 1,633 | 3,537 | 6,614 | ||||||||
| Total mortgage banking income | $ | 11,263 | $ | 8,147 | $ | 6,861 | $ | 8,447 | $ | 9,698 | $ | 19,410 | $ | 21,068 | |
Balance Sheet
| (Dollars in thousands) | As of | ||||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | |||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 1,378,612 | $ | 1,091,339 | $ | 1,092,032 | $ | 1,275,620 | $ | 851,906 | |||||
| Securities held to maturity, at amortized cost | 1,076,817 | 1,101,901 | 1,126,112 | 1,150,531 | 1,174,663 | ||||||||||
| Securities available for sale, at fair value | 2,471,487 | 1,002,056 | 831,013 | 764,844 | 749,685 | ||||||||||
| Loans held for sale, at fair value | 356,791 | 226,003 | 246,171 | 291,735 | 266,406 | ||||||||||
| Loans held for investment | 18,563,447 | 13,055,593 | 12,885,020 | 12,627,648 | 12,604,755 | ||||||||||
| Allowance for credit losses on loans | (290,770 | ) | (203,931 | ) | (201,756 | ) | (200,378 | ) | (199,871 | ) | |||||
| Loans, net | 18,272,677 | 12,851,662 | 12,683,264 | 12,427,270 | 12,404,884 | ||||||||||
| Premises and equipment, net | 465,100 | 279,011 | 279,796 | 280,550 | 280,966 | ||||||||||
| Other real estate owned | 11,750 | 8,654 | 8,673 | 9,136 | 7,366 | ||||||||||
| Goodwill | 1,419,782 | 988,898 | 988,898 | 988,898 | 991,665 | ||||||||||
| Other intangibles | 163,751 | 13,025 | 14,105 | 15,238 | 16,397 | ||||||||||
| Bank-owned life insurance | 486,613 | 337,502 | 391,810 | 389,138 | 387,791 | ||||||||||
| Mortgage servicing rights | 64,539 | 72,902 | 72,991 | 71,990 | 72,092 | ||||||||||
| Other assets | 457,056 | 298,428 | 300,003 | 293,890 | 306,570 | ||||||||||
| Total assets | $ | 26,624,975 | $ | 18,271,381 | $ | 18,034,868 | $ | 17,958,840 | $ | 17,510,391 | |||||
| Liabilities and Shareholders’ Equity | |||||||||||||||
| Liabilities | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest-bearing | $ | 5,356,153 | $ | 3,541,375 | $ | 3,403,981 | $ | 3,529,801 | $ | 3,539,453 | |||||
| Interest-bearing | 16,226,484 | 11,230,720 | 11,168,631 | 10,979,950 | 10,715,760 | ||||||||||
| Total deposits | 21,582,637 | 14,772,095 | 14,572,612 | 14,509,751 | 14,255,213 | ||||||||||
| Short-term borrowings | 405,349 | 108,015 | 108,018 | 108,732 | 232,741 | ||||||||||
| Long-term debt | 556,976 | 433,309 | 430,614 | 433,177 | 428,677 | ||||||||||
| Other liabilities | 301,159 | 230,857 | 245,306 | 249,102 | 239,059 | ||||||||||
| Total liabilities | 22,846,121 | 15,544,276 | 15,356,550 | 15,300,762 | 15,155,690 | ||||||||||
| Shareholders’ equity: | |||||||||||||||
| Common stock | 488,612 | 332,421 | 332,421 | 332,421 | 296,483 | ||||||||||
| Treasury stock | (90,248 | ) | (91,646 | ) | (97,196 | ) | (97,251 | ) | (97,534 | ) | |||||
| Additional paid-in capital | 2,393,566 | 1,486,849 | 1,491,847 | 1,488,678 | 1,304,782 | ||||||||||
| Retained earnings | 1,100,965 | 1,121,102 | 1,093,854 | 1,063,324 | 1,005,086 | ||||||||||
| Accumulated other comprehensive loss | (114,041 | ) | (121,621 | ) | (142,608 | ) | (129,094 | ) | (154,116 | ) | |||||
| Total shareholders’ equity | 3,778,854 | 2,727,105 | 2,678,318 | 2,658,078 | 2,354,701 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 26,624,975 | $ | 18,271,381 | $ | 18,034,868 | $ | 17,958,840 | $ | 17,510,391 | |||||
Net Interest Income and Net Interest Margin
| (Dollars in thousands) | Three Months Ended | |||||||||||||||||
| June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||||||||
| Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | ||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans held for investment | $ | 18,448,000 | $ | 304,834 | 6.63 | % | $ | 12,966,869 | $ | 199,504 | 6.24 | % | $ | 12,575,651 | $ | 200,670 | 6.41 | % |
| Loans held for sale | 287,855 | 4,639 | 6.45 | % | 200,917 | 3,008 | 5.99 | % | 219,826 | 3,530 | 6.42 | % | ||||||
| Taxable securities | 3,106,565 | 24,917 | 3.21 | % | 1,883,535 | 10,971 | 2.33 | % | 1,832,002 | 9,258 | 2.02 | % | ||||||
| Tax-exempt securities | 462,732 | 4,309 | 3.72 | % | 259,800 | 1,443 | 2.22 | % | 263,937 | 1,451 | 2.20 | % | ||||||
| Total securities | 3,569,297 | 29,226 | 3.28 | % | 2,143,335 | 12,414 | 2.32 | % | 2,095,939 | 10,709 | 2.04 | % | ||||||
| Interest-bearing balances with banks | 901,803 | 9,057 | 4.03 | % | 824,743 | 8,639 | 4.25 | % | 595,030 | 7,874 | 5.32 | % | ||||||
| Total interest-earning assets | 23,206,955 | 347,756 | 6.01 | % | 16,135,864 | 223,565 | 5.61 | % | 15,486,446 | 222,783 | 5.77 | % | ||||||
| Cash and due from banks | 357,338 | 181,869 | 187,519 | |||||||||||||||
| Intangible assets | 1,589,490 | 1,002,511 | 1,008,638 | |||||||||||||||
| Other assets | 1,029,082 | 669,392 | 688,766 | |||||||||||||||
| Total assets | $ | 26,182,865 | $ | 17,989,636 | $ | 17,371,369 | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Interest-bearing demand(1) | $ | 11,191,443 | $ | 76,542 | 2.74 | % | $ | 7,835,617 | $ | 54,710 | 2.83 | % | $ | 7,094,411 | $ | 56,132 | 3.17 | % |
| Savings deposits | 1,322,007 | 1,032 | 0.31 | % | 813,451 | 711 | 0.35 | % | 839,638 | 729 | 0.35 | % | ||||||
| Brokered deposits | — | — | — | % | — | — | — | % | 294,650 | 3,944 | 5.37 | % | ||||||
| Time deposits | 3,404,482 | 34,347 | 4.05 | % | 2,474,218 | 23,965 | 3.93 | % | 2,487,873 | 26,816 | 4.34 | % | ||||||
| Total interest-bearing deposits | 15,917,932 | 111,921 | 2.82 | % | 11,123,286 | 79,386 | 2.89 | % | 10,716,572 | 87,621 | 3.28 | % | ||||||
| Borrowed funds | 1,036,045 | 13,118 | 5.07 | % | 556,734 | 6,747 | 4.88 | % | 583,965 | 7,564 | 5.19 | % | ||||||
| Total interest-bearing liabilities | 16,953,977 | 125,039 | 2.96 | % | 11,680,020 | 86,133 | 2.99 | % | 11,300,537 | 95,185 | 3.38 | % | ||||||
| Noninterest-bearing deposits | 5,233,976 | 3,408,830 | 3,509,109 | |||||||||||||||
| Other liabilities | 249,861 | 208,105 | 223,992 | |||||||||||||||
| Shareholders’ equity | 3,745,051 | 2,692,681 | 2,337,731 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 26,182,865 | $ | 17,989,636 | $ | 17,371,369 | ||||||||||||
| Net interest income/ net interest margin | $ | 222,717 | 3.85 | % | $ | 137,432 | 3.45 | % | $ | 127,598 | 3.31 | % | ||||||
| Cost of funding | 2.26 | % | 2.31 | % | 2.58 | % | ||||||||||||
| Cost of total deposits | 2.12 | % | 2.22 | % | 2.47 | % | ||||||||||||
(1) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.
Net Interest Income and Net Interest Margin, continued
| (Dollars in thousands) | Six Months Ended | |||||||||||
| June 30, 2025 | June 30, 2024 | |||||||||||
| Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||
| Interest-earning assets: | ||||||||||||
| Loans held for investment | $ | 15,722,576 | $ | 504,338 | 6.47 | % | $ | 12,491,814 | $ | 395,310 | 6.35 | % |
| Loans held for sale | 244,626 | 7,647 | 6.25 | % | 187,604 | 5,838 | 6.22 | % | ||||
| Taxable securities | 2,498,428 | 35,888 | 2.87 | % | 1,861,909 | 18,763 | 2.02 | % | ||||
| Tax-exempt securities | 361,827 | 5,752 | 3.18 | % | 267,108 | 2,956 | 2.21 | % | ||||
| Total securities | 2,860,255 | 41,640 | 2.91 | % | 2,129,017 | 21,719 | 2.04 | % | ||||
| Interest-bearing balances with banks | 863,486 | 17,696 | 4.13 | % | 582,683 | 15,655 | 5.40 | % | ||||
| Total interest-earning assets | 19,690,943 | 571,321 | 5.84 | % | 15,391,118 | 438,522 | 5.72 | % | ||||
| Cash and due from banks | 270,088 | 188,011 | ||||||||||
| Intangible assets | 1,297,622 | 1,009,232 | ||||||||||
| Other assets | 850,231 | 701,770 | ||||||||||
| Total assets | $ | 22,108,884 | $ | 17,290,131 | ||||||||
| Interest-bearing liabilities: | ||||||||||||
| Interest-bearing demand(1) | $ | 9,522,800 | $ | 131,252 | 2.78 | % | $ | 7,025,200 | $ | 108,632 | 3.10 | % |
| Savings deposits | 1,069,134 | 1,743 | 0.33 | % | 850,018 | 1,459 | 0.34 | % | ||||
| Brokered deposits | — | — | — | % | 370,129 | 9,931 | 5.38 | % | ||||
| Time deposits | 2,941,920 | 58,312 | 3.99 | % | 2,403,646 | 50,212 | 4.20 | % | ||||
| Total interest-bearing deposits | 13,533,854 | 191,307 | 2.85 | % | 10,648,993 | 170,234 | 3.21 | % | ||||
| Borrowed funds | 797,714 | 19,865 | 5.00 | % | 573,182 | 14,840 | 5.19 | % | ||||
| Total interest-bearing liabilities | 14,331,568 | 211,172 | 2.97 | % | 11,222,175 | 185,074 | 3.31 | % | ||||
| Noninterest-bearing deposits | 4,326,445 | 3,513,860 | ||||||||||
| Other liabilities | 229,098 | 228,090 | ||||||||||
| Shareholders’ equity | 3,221,773 | 2,326,006 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 22,108,884 | $ | 17,290,131 | ||||||||
| Net interest income/ net interest margin | $ | 360,149 | 3.68 | % | $ | 253,448 | 3.30 | % | ||||
| Cost of funding | 2.28 | % | 2.52 | % | ||||||||
| Cost of total deposits | 2.16 | % | 2.41 | % | ||||||||
(1) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.
Loan Portfolio
| (Dollars in thousands) | As of | |||||||||
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||||||
| Loan Portfolio: | ||||||||||
| Commercial, financial, agricultural | $ | 2,666,923 | $ | 1,888,580 | $ | 1,885,817 | $ | 1,804,961 | $ | 1,847,762 |
| Lease financing | 89,568 | 85,412 | 90,591 | 98,159 | 102,996 | |||||
| Real estate - construction | 1,339,967 | 1,090,862 | 1,093,653 | 1,198,838 | 1,355,425 | |||||
| Real estate - 1-4 family mortgages | 4,874,679 | 3,583,080 | 3,488,877 | 3,440,038 | 3,435,818 | |||||
| Real estate - commercial mortgages | 9,470,134 | 6,320,120 | 6,236,068 | 5,995,152 | 5,766,478 | |||||
| Installment loans to individuals | 122,176 | 87,539 | 90,014 | 90,500 | 96,276 | |||||
| Total loans | $ | 18,563,447 | $ | 13,055,593 | $ | 12,885,020 | $ | 12,627,648 | $ | 12,604,755 |
Credit Quality and Allowance for Credit Losses on Loans
| (Dollars in thousands) | As of | ||||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | |||||||||||
| Nonperforming Assets: | |||||||||||||||
| Nonaccruing loans | $ | 137,999 | $ | 98,638 | $ | 110,811 | $ | 113,872 | $ | 97,795 | |||||
| Loans 90 days or more past due | 3,860 | 95 | 2,464 | 5,351 | 240 | ||||||||||
| Total nonperforming loans | 141,859 | 98,733 | 113,275 | 119,223 | 98,035 | ||||||||||
| Other real estate owned | 11,750 | 8,654 | 8,673 | 9,136 | 7,366 | ||||||||||
| Total nonperforming assets | $ | 153,609 | $ | 107,387 | $ | 121,948 | $ | 128,359 | $ | 105,401 | |||||
| Criticized Loans | |||||||||||||||
| Classified loans | $ | 333,626 | $ | 224,654 | $ | 241,708 | $ | 218,135 | $ | 191,595 | |||||
| Special Mention loans | 159,931 | 95,778 | 130,882 | 163,804 | 138,343 | ||||||||||
| Criticized loans(1) | $ | 493,557 | $ | 320,432 | $ | 372,590 | $ | 381,939 | $ | 329,938 | &
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