Renasant Corporation (RNST)RNST

Renasant Corporation - Comprehensive Overview

Company Profile:

History and Background:

Renasant Corporation (NASDAQ: RLFT) is a financial services holding company headquartered in Tupelo, Mississippi. Founded in 1904 as the Bank of Tupelo, the company has grown through acquisitions and organic expansion to become one of the Southeast's leading financial institutions. Today, Renasant operates over 190 banking, mortgage, and insurance offices across Mississippi, Alabama, Tennessee, Florida, Georgia, and South Carolina.

Core Business Areas:

Renasant's core business areas consist of:

• Community Banking: Offering traditional banking products and services to individuals and businesses, including checking and savings accounts, loans, mortgages, and treasury management solutions.
• Mortgage Banking: Providing residential mortgage lending services through its Renasant Mortgage division.
• Insurance: Offering a range of insurance products, including property and casualty, life, and health insurance, through its Renasant Insurance division.

Leadership Team and Corporate Structure:

Renasant's leadership team is led by Chairman and CEO E. Robinson McGraw, who has been with the company since 1974. The executive team also includes President and COO Mitch Waycaster, CFO John Oxford, and Chief Risk Officer Tim DeMont. The company operates under a decentralized structure, with regional presidents overseeing operations in each market.

Top Products and Market Share:

Top Products:

• Checking and Savings Accounts: Renasant offers a variety of checking and savings accounts to meet the needs of individual and business customers.
• Loans: Renasant provides a range of loan products, including commercial loans, residential mortgages, consumer loans, and home equity loans.
• Mortgages: Renasant Mortgage is a leading mortgage lender in the Southeast, offering a wide range of mortgage products and competitive rates.
• Insurance: Renasant Insurance offers a variety of insurance products, including property and casualty, life, and health insurance.

Market Share:

• Community Banking: Renasant holds a market share of approximately 2.5% in the Southeast region.
• Mortgage Banking: Renasant Mortgage holds a market share of approximately 0.5% in the US mortgage market.
• Insurance: Renasant Insurance holds a market share of approximately 0.2% in the US insurance market.

Product Performance and Market Reception:

Renasant's products and services have received positive reviews from customers and industry analysts. The company has been recognized for its strong customer service, competitive rates, and innovative products.

Total Addressable Market:

The total addressable market (TAM) for Renasant Corporation is the Southeast region of the United States, which has a population of over 110 million people and a GDP of over $2 trillion. The TAM for Renasant's specific product segments is as follows:

• Community Banking: The TAM for community banking in the Southeast is estimated to be over $1 trillion.
• Mortgage Banking: The TAM for mortgage lending in the US is estimated to be over $4 trillion.
• Insurance: The TAM for the US insurance market is estimated to be over $1.5 trillion.

Financial Performance:

Recent Financial Statements:

• Revenue: Renasant's revenue has grown steadily over the past five years, from $545 million in 2018 to $662 million in 2022.
• Net Income: Net income has also increased over the same period, from $105 million in 2018 to $143 million in 2022.
• Profit Margins: Profit margins have remained relatively stable, with a net profit margin of approximately 21% in 2022.
• Earnings per Share (EPS): EPS has also increased, from $2.90 in 2018 to $3.90 in 2022.

Year-over-Year Performance:

• Renasant has shown consistent year-over-year growth in revenue, net income, and EPS.
• The company has maintained a strong capital position, with a Tier 1 capital ratio of 11.5% as of September 30, 2023.

Cash Flow and Balance Sheet:

• Renasant has a strong cash flow position, with operating cash flow of $175 million in 2022.
• The company has a healthy balance sheet, with total assets of $12.8 billion and total liabilities of $9.7 billion as of September 30, 2023.

Dividends and Shareholder Returns:

Dividend History:

• Renasant has a history of paying dividends, with a current annual dividend of $2.40 per share.
• The company has increased its dividend payout by an average of 10% per year over the past five years.
• The current dividend yield is approximately 3.3%.

Shareholder Returns:

• Renasant's stock price has appreciated by over 50% over the past five years.
• Total shareholder returns, including dividends, have exceeded 60% over the same period.

Growth Trajectory:

Historical Growth:

• Renasant has experienced steady growth over the past five to ten years, with revenue and earnings increasing at an average annual rate of 7%.
• The company has expanded its branch network and product offerings through acquisitions and organic growth.

Future Growth Projections:

• Analysts expect Renasant to continue to grow its earnings at a mid-single digit rate in the coming years.
• The company is well-positioned to benefit from the continued economic growth in the Southeast region.