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Mergers and Acquisitions | 9 Months Ended
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Sep. 30, 2025
Business Combination [Abstract] |
Mergers and Acquisitions | Mergers and Acquisitions (Dollar Amounts In Thousands, Except Share Data) Acquisition of The First Bancshares, Inc. (“The First”) Effective April 1, 2025, the Company completed its acquisition by merger of The First, the parent company of The First Bank, in a transaction valued at approximately $1,052,690. The Company issued 30,811,851 shares of common stock and paid approximately $1,869, net of tax benefit, to The First stock option holders for 100% of the voting equity interest in The First. At closing, The First merged with and into the Company, with the Company the surviving corporation in the merger; immediately thereafter, The First Bank merged with and into Renasant Bank, with Renasant Bank the surviving banking corporation in the merger. Before the merger, The First operated 116 banking locations throughout Louisiana, Mississippi, Alabama, Georgia and Florida. The Company incurred transaction costs of $17,494 and $38,764 during the three and nine months ended September 30, 2025. The Company incurred transaction costs of $4,746 during the three and nine months ended September 30, 2024. These transaction costs are reported in the line item “Merger and conversion related expenses” in the Consolidated Statements of Income. The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed were recorded at estimated fair values as of the acquisition date. The Company recorded approximately $582,423 in intangible assets which consist of goodwill of $422,813 and a core deposit intangible of $159,610. Goodwill resulted from a combination of revenue enhancements from expansion in existing markets and efficiencies resulting from operational synergies. The calculation of goodwill is subject to change as additional information becomes available during the measurement period. As a result of the various measurement period adjustments identified during the third quarter of 2025, the estimated fair value of goodwill as of the acquisition date decreased by $8,071, from $430,884 to $422,813. The fair value of the core deposit intangible is being amortized over its estimated useful life, currently expected to be approximately 10 years. The goodwill is not deductible for income tax purposes. The Company assumed the outstanding short-term borrowings and long-term debt of The First. Short-term borrowings consisted of $298,250 in short-term advances from the Federal Home Loan Bank. Long-term debt consisted of $95,262 and $25,653 in subordinated notes and junior subordinated debentures, respectively. The following table summarizes the calculation of the purchase price in connection with the Company’s merger with The First.
Purchase Price: |  |
Shares issued to common shareholders, excluding unvested restricted stock awards |  | 30,811,851 |
Purchase price per share |  | $ | 33.93 |
Value of stock paid |  | $ | 1,045,446 |
Fair value of converted unvested restricted stock awards for pre-combination service |  | 5,375 |
Cash settlement for stock options, net of tax benefit |  | 1,869 |
Total purchase price |  | $ | 1,052,690 |
The following table summarizes the fair value on April 1, 2025 of assets acquired and liabilities assumed on that date in connection with the merger with The First.
| As Reported by The First |  | Preliminary Adjustments |  | Measurement Period Adjustments |  | Fair Value of Net Assets Acquired at Date of Acquisition
Cash and cash equivalents | $ | 263,352 |  |  | $ | — |  |  | $ | — |  |  | $ | 263,352 |
Securities | 1,528,975 |  |  | (71,772) |  |  | 174 |  |  | 1,457,377 |
Loans, including loans held for sale | 5,327,056 |  |  | (152,153) |  |  | (1,511) |  |  | 5,173,392 |
Premises and equipment | 174,770 |  |  | (1,596) |  |  | — |  |  | 173,174 |
Bank-owned life insurance | 146,601 |  |  | — |  |  | — |  |  | 146,601 |
Other real estate owned | 8,413 |  |  | 2,696 |  |  | — |  |  | 11,109 |
Core deposit intangible | 56,899 |  |  | 102,711 |  |  | — |  |  | 159,610 |
Other assets | 169,500 |  |  | 3,859 |  |  | 379 |  |  | 173,738 |
Total assets | $ | 7,675,566 |  |  | $ | (116,255) |  |  | $ | (958) |  |  | $ | 7,558,353 |
Deposits | $ | 6,456,784 |  |  | $ | (7,391) |  |  | $ | — |  |  | 6,449,393 |
Borrowings | 422,067 |  |  | (2,902) |  |  | — |  |  | 419,165 |
Other liabilities | 75,760 |  |  | (15,903) |  |  | 61 |  |  | 59,918 |
Total liabilities | $ | 6,954,611 |  |  | $ | (26,196) |  |  | $ | 61 |  |  | $ | 6,928,476 |
Net identifiable assets acquired over liabilities assumed | $ | 720,955 |  |  | $ | (90,059) |  |  | $ | (1,019) |  |  | $ | 629,877 |
Goodwill(1) | 272,520 |  |  | 158,364 |  |  | (8,071) |  |  | 422,813 |
Net assets acquired over liabilities assumed | $ | 993,475 |  |  | $ | 68,305 |  |  | $ | (9,090) |  |  | $ | 1,052,690 |
(1) The goodwill resulting from the merger has been assigned to the Community Banks operating segment. The following table presents additional information related to the acquired loan portfolio at the acquisition date:
| April 1, 2025
Purchased Credit-Deteriorated (“PCD”) loans: |
Par value | $ | 168,511 |
Allowance for credit losses at acquisition | (25,003) |
Non-credit discount | (4,021) |
Purchase price | $ | 139,487 |
Non-PCD loans: |
Fair value | $ | 5,032,996 |
Gross contractual amounts receivable | 5,233,447 |
Estimate of contractual cash flows not expected to be collected | 62,190 |
Supplemental Pro Forma Combined Condensed Consolidated Results of Operations The following unaudited pro forma combined condensed consolidated financial information presents the results of operations for the three and nine months ended September 30, 2025 and 2024 of the Company as though the merger with The First had been completed as of January 1, 2024. The unaudited pro forma information combines the historical results of The First with the Company’s historical consolidated results and applies the impact of purchase accounting adjustments such as loan discount accretion, deposit amortization and intangible assets amortization as if the merger was completed as of January 1, 2024. It excludes $20,479 of merger-related expenses and $66,612 of Day 1 acquisition provision expense from the second quarter of 2025 and instead includes such expenses in the first quarter of 2024. The pro forma information is not necessarily indicative of what would have occurred had the acquisition taken place on January 1, 2024. The pro forma information does not include the effect of any cost-saving or revenue-enhancing strategies. Other than the aforementioned $20,479 in merger-related expenses, which were attributed to the first quarter of 2024, merger expenses are reflected in the period in which they were incurred.
| (Unaudited) |  | (Unaudited)
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Net interest income - pro forma | $ | 214,571 |  |  | $ | 210,037 |  |  | $ | 639,871 |  |  | $ | 620,429 |
Noninterest income - pro forma | $ | 46,026 |  |  | $ | 99,012 |  |  | $ | 139,289 |  |  | $ | 200,096 |
Noninterest expense - pro forma | $ | 183,830 |  |  | $ | 175,935 |  |  | $ | 548,533 |  |  | $ | 516,469 |
Net income - pro forma | $ | 50,839 |  |  | $ | 98,877 |  |  | $ | 173,055 |  |  | $ | 175,698 |
Earnings per share - pro forma: |  |  |  |  |  |  |
Basic | $ | 0.54 |  |  | $ | 1.07 |  |  | $ | 1.83 |  |  | $ | 1.96 |
Diluted | $ | 0.53 |  |  | $ | 1.06 |  |  | $ | 1.81 |  |  | $ | 1.95 |
The Company has determined it is impracticable to disclose stand-alone revenues and earnings for legacy The First since April 1, 2025 due to the merging of certain processes during the second quarter of 2025.

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