TUPELO, Miss. - Renasant Corporation (NYSE: NYSE:RNST), the parent company of Renasant Bank, has announced a public offering of 6.25 million shares of its common stock at a price of $32.00 per share, totaling an aggregate offering amount of $200 million. The company has also provided underwriters with a 30-day option to purchase up to an additional 937,500 shares at the public offering price, minus underwriting discounts.
Stephens Inc. is the lead book-running manager for this offering, with Raymond James & Associates, Inc. as the joint book-running manager. Janney Montgomery Scott LLC, Piper Sandler & Co., and Hovde Group, LLC are serving as co-managers.
Renasant Corporation anticipates net proceeds from the offering to be around $190 million, presuming the underwriters do not exercise their option to buy additional shares. This figure is after underwriting discounts and before transaction expenses. The funds are intended for general corporate purposes, which include supporting the growth of Renasant Bank and potential strategic acquisitions.
The offering is being made through a prospectus supplement and an accompanying base prospectus. Renasant Corporation has filed these documents with the U.S. Securities and Exchange Commission (SEC), and they are available for review on the SEC's website.
This financial move comes as part of Renasant Corporation's continued expansion strategy. Renasant Bank, boasting a 120-year history, operates 185 banking, lending, mortgage, and wealth management offices across several U.S. states, with assets amounting to approximately $17.5 billion.
The press release emphasizes that this announcement is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy the securities. The completion of the sale is subject to various regulatory approvals and customary closing conditions.
Investors are reminded that the information provided is based on a press release statement and should consult the full prospectus supplement and other documents filed with the SEC for a more comprehensive understanding of the offering and Renasant Corporation.
In other recent news, Renasant Corporation demonstrated solid progress in its Q2 earnings, reporting earnings of $38.9 million or $0.69 per diluted share. This was largely driven by an increase in loan interest income, attributed to a rise in loan yields, and a significant surge in traditional retail deposits, exceeding $200 million. The company also reported an uptick in non-interest income, marking its first increase since Q1 2023.
Renasant Corporation announced the sale of its insurance business, Renasant Insurance, a development expected to influence the Q3 results. The company's second quarter also highlighted an emphasis on reducing expenses, improving profitability, and managing asset quality, especially within the commercial loans sector.
Analysts noted an improvement in asset quality, with a reduction in criticized loans and a slight increase in non-performing assets. While there were concerns centered on commercial loans, particularly in the senior housing and office space sectors, the company's strong loan growth pipeline and robust core deposit base were viewed positively. These recent developments underline Renasant Corporation's strategic approach to growth and asset management.
InvestingPro Insights
Amidst Renasant Corporation's (NYSE: RNST) public offering of shares, potential investors may find the latest data and analysis from InvestingPro particularly insightful. Renasant's market capitalization currently stands at $2.03 billion, reflecting the scale of the company within the financial sector. A key indicator of its valuation, the price-to-earnings (P/E) ratio, is at 13.65, which aligns closely with the adjusted P/E ratio for the last twelve months as of Q2 2024, suggesting a consistent valuation over time.
InvestingPro Tips indicate that analysts have recently revised earnings expectations downwards for the upcoming period, which could be a signal for investors to consider. Moreover, while the stock is demonstrating strong returns over the last month and three months, with a one-month price total return of 21.45% and a three-month price total return of 26.82%, the Relative Strength Index (RSI) suggests that the stock is currently in overbought territory.
Despite some concerns over gross profit margins, Renasant has a commendable track record of maintaining dividend payments for 32 consecutive years, boasting a dividend yield of 2.37% as of the last recorded date. This commitment to shareholder returns, alongside the company's profitability over the last twelve months, may offer some reassurance to investors looking for stability in their portfolio.
For those interested in a deeper dive into Renasant Corporation's financial health and future prospects, InvestingPro offers additional insights and tips. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes access to a total of 8 InvestingPro Tips for Renasant Corporation, providing a more comprehensive investment analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.