TUPELO, Miss. - Renasant Corporation (NYSE: NYSE:RNST) has completed the sale of its insurance subsidiary, Renasant Insurance, Inc., to Sunstar Insurance Group, LLC, effective July 1, 2024. The transaction marks Sunstar's first foray into Mississippi, expanding its reach in the Southeast and Lower Midwest.
Sunstar, a Memphis-based insurance brokerage and risk management firm, is recognized as the 33rd largest independent insurance agency in the country, managing over $1.2 billion in premiums. The company's workforce exceeds 700 across more than 50 offices in six states.
Mitch Waycaster, CEO of Renasant, highlighted the benefits of the deal for customers and employees, noting enhanced product offerings and access to specialized resources and expertise. Renasant will maintain a strategic relationship with Sunstar, aiming to offer its banking customers value-added insurance and employee benefits products.
Bill Dalton, the new President of Sunstar Insurance Services and former President of Renasant Insurance, assured customers of continuity in leadership and service. He emphasized the company's longstanding community presence and its commitment to customer prosperity.
David L. Bowlin, Sunstar's Chairman and CEO, expressed confidence in the future service capabilities of Sunstar Insurance Services under the continued guidance of the existing leadership team.
Piper Sandler & Co. provided financial advisory services to Renasant Corporation, while Phelps Dunbar LLP acted as legal counsel during the transaction.
Renasant Corporation, parent of Renasant Bank, is a 120-year-old financial institution with approximately $17.3 billion in assets, operating numerous banking and financial service locations across the Southeast.
In other recent news, Renasant Corporation has announced a successful first quarter in 2024, with substantial growth in loans and deposits. The company's earnings for this period were $39.4 million, or $0.70 per diluted share. Kevin Chapman has been named as the incoming CEO, set to start in May 2025.
The company has also seen a rise in loan yields to about 8.25%, excluding the impact from RBC. In terms of future expectations, Renasant Corporation anticipates a stable net interest margin and an increase in deposit costs. The company is also expecting to see a decrease in loan loss reserves as economic factors stabilize. These are recent developments that highlight the company's growth and strategic changes.
InvestingPro Insights
Renasant Corporation's (NYSE: RNST) strategic sale of its insurance subsidiary comes at a time when the company's financial metrics present a mixed picture. InvestingPro data reveals a market capitalization of $1.73 billion, with a price-to-earnings (P/E) ratio for the last twelve months as of Q1 2024 at 12.52. This valuation metric suggests that the market has modest expectations for the company's earnings growth.
Despite a slight decrease in revenue growth over the last twelve months, with a contraction of 3.96%, Renasant has maintained strong operating income margins at 28.51%, showcasing efficient management of its operations. Additionally, the company has continued to reward shareholders, boasting a consistent dividend yield of 2.88%, which is particularly noteworthy given the company's track record of maintaining dividend payments for 32 consecutive years—an InvestingPro Tip that highlights the company's commitment to returning value to its shareholders.
Another InvestingPro Tip to consider is that analysts are optimistic about Renasant's profitability for the year. This forward-looking sentiment is supported by the company's performance over the last twelve months, where it remained profitable, with basic and diluted earnings per share from continuing operations at $2.46 and $2.44, respectively.
Investors interested in a deeper analysis of Renasant Corporation, including additional InvestingPro Tips, can explore further at https://www.investing.com/pro/RNST. There are 3 additional tips available to help inform investment decisions. To take advantage of these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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