RNST

Renasant's FY2025 is a transformation year dominated by the April 1, 2025 merger with The First, which added $7.57B in assets, $5.17B in loans and $6.45B in deposits net of purchase accounting. The optics are jarring: total assets jumped 48.3% to $26.8B and share count rose 47.9% to 94.1M, while net income slipped 7.3% to $181M and diluted EPS collapsed 36.7% to $2.07. MD&A explicitly attributes the EPS drop to merger and conversion-related expenses (noninterest expense rose to $651.7M from $461.6M) and a $107.5M provision for credit losses versus just $9.3M in 2024, driven by the Day 1 CECL provision on acquired loans plus organic growth. Strip those out and adjusted diluted EPS is actually $3.06 vs. $2.76 in 2024 — meaningful underlying improvement.

The franchise quality looks intact. Net interest income surged to $804M from $512M, net interest margin expanded to 3.79% from 3.34%, and adjusted NIM widened to 3.57%. Capital is healthy at 14.52% shareholders' equity-to-assets and 9.26% tangible common equity-to-tangible assets. Management is returning capital — buying back 388,940 shares at $34.29 in Q4 (well below the current $43.29) and growing dividends 46.3% to $78.6M. The $60M subordinated note redemption in October signals balance-sheet confidence post-merger.