Renasant Corporation (NYSE:RNST), a state commercial bank headquartered in Mississippi, has announced the adoption of amended and restated bylaws and the approval of a merger agreement with The First Bancshares , Inc. (NYSE:FBMS) following a special meeting of shareholders.
On Monday, the board of Renasant approved changes to the company's bylaws that took effect immediately.
These amendments include the alignment of references from Nasdaq Marketplace Rules to New York Stock Exchange listing rules, the removal of a requirement for special shareholder meetings to be held at the principal offices in Tupelo, Mississippi, and several non-substantive adjustments aimed at improving the bylaws' readability.
In addition, at the special meeting held on Monday, Renasant's shareholders voted on matters concerning the merger with FBMS, initially announced on July 29, 2024.
The proposals included approving the merger agreement and the transactions it entails, such as the merger of FBMS into Renasant and the issuance of Renasant common stock as part of the merger consideration. Shareholders also voted on a proposal to allow adjournments of the special meeting to solicit additional proxies if needed.
The merger and share issuance proposal received overwhelming support, with 51,923,496 votes in favor, 73,382 against, and 60,194 abstentions. The adjournment proposal also passed with 49,865,468 votes in favor, 2,145,191 against, and 46,413 abstentions.
As of the record date on September 12, 2024, Renasant had 64,632,032 shares of common stock issued and outstanding. The special meeting saw a quorum with approximately 80.54% of outstanding shares represented.
The information provided in this article is based on Renasant Corporation's recent SEC filing.
In other recent news, Renasant Corporation has reported strong financial results for the third quarter, including earnings of $72.5 million, or $1.18 per diluted share. This includes a notable after-tax gain of $39 million from the sale of an insurance agency. The company's shareholders have approved a merger with The First, expected to close in the first half of 2025.
Net interest income saw an increase of $6 million due to higher loan yields, and total deposits grew by over $285 million. Despite challenges in the mortgage sector and anticipated modest margin contraction in 2025, the company's loan pipeline increased to $176 million, with loan production at $507 million.
However, it's worth noting that the company's mortgage business may face headwinds due to fluctuating interest rates and stress in senior housing loans. These recent developments indicate a period of strategic growth and financial strength for Renasant Corporation, as the company prepares for its upcoming merger with The First.
InvestingPro Insights
As Renasant Corporation (NYSE:RNST) moves forward with its merger plans and bylaw amendments, investors may find additional context from recent financial data and analyst insights valuable. According to InvestingPro, Renasant's market capitalization stands at $2.14 billion, with a price-to-earnings ratio of 10.51, suggesting the stock may be reasonably valued relative to its earnings.
The company's revenue growth is noteworthy, with a 36.87% increase in quarterly revenue as of Q3 2024. This strong growth could potentially support the strategic rationale behind the merger with The First Bancshares, Inc. Additionally, Renasant boasts an impressive operating income margin of 29.92% for the last twelve months, indicating efficient management of operating costs.
InvestingPro Tips highlight that Renasant has maintained dividend payments for 32 consecutive years, which may appeal to income-focused investors considering the merger's potential impact on shareholder returns. The current dividend yield stands at 2.57%, providing a steady income stream for shareholders.
It's worth noting that InvestingPro offers 13 additional tips for Renasant Corporation, providing a more comprehensive analysis for investors interested in deeper insights into the company's financial health and prospects.
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