Renasant Corporation Reports $41.5 Million Net Income in Q1 2025, Completes Merger with The First Bancshares

Renasant Corporation reported a net income of $41.5 million for the first quarter of 2025, reflecting an increase from $39.4 million in the same period of the previous year. Basic and diluted earnings per share were both $0.65, down from $0.70 in the first quarter of 2024. The company's total assets grew to $18.27 billion, up from $18.03 billion at the end of 2024, driven by an increase in loans and deposits. Total loans, excluding loans held for sale, rose to $13.06 billion, compared to $12.89 billion at the end of the previous year.

The company experienced a decrease in net interest income, which amounted to $134.2 million, compared to $123.3 million in the prior year. This decline was attributed to a reduction in interest expense, which fell to $86.1 million from $89.9 million, as the company benefited from lower funding costs due to the Federal Reserve's interest rate cuts. Noninterest income also decreased to $36.5 million from $41.4 million, primarily due to the sale of its insurance agency in July 2024, which had contributed to the previous year's figures.

Renasant's operational metrics showed a slight increase in total deposits, which reached $14.77 billion, up from $14.57 billion. The company reported a notable increase in noninterest-bearing deposits, which accounted for 23.97% of total deposits, compared to 23.36% at the end of 2024. The company also recorded a provision for credit losses of $2.05 million, down from $2.64 million in the first quarter of 2024, reflecting improved credit quality and management's expectations of future losses.

Strategically, Renasant completed its merger with The First Bancshares, Inc. on April 1, 2025, which is expected to enhance its market presence and operational capabilities. The merger will be accounted for as a business combination, and the company is currently finalizing the purchase accounting. The integration of The First is anticipated to provide additional growth opportunities and cost synergies, although management acknowledges the challenges associated with integrating the two organizations.

Looking ahead, Renasant's management remains optimistic about the company's growth trajectory, supported by its strong capital position and ongoing efforts to enhance operational efficiency. The company continues to focus on expanding its loan portfolio while managing interest rate risk and maintaining a stable funding base. The outlook for the remainder of 2025 will depend on the successful integration of The First and the overall economic environment, including interest rate trends and market conditions.