On August 4, I wrote my first article for Renasant Corporation ( RNST ). The company had completed a merger with The First Bancshares four months prior to that date. The $1.2 billion deal expanded theI have been involved in the financial world for over 20 years with experience as an advisor, teacher, and writer. I am a full believer in the free-market system and that financial markets are efficient with most stocks reflecting their real current value. The best opportunities for profits on individual stocks ...

Core Points - The Renasant Community Foundation announced the gifting of 85 community grants to nonprofit organizations in the Southeast to celebrate Giving Tuesday, reflecting its commitment to community support [1][2] - The grants support various sectors including education, human services, arts and culture, and community development [1] Summary by Categories Community Grants - Renasant Community Foundation awarded 85 grants to nonprofit organizations across the Southeast [1] - The initiative is part of the celebration of Giving Tuesday, which promotes generosity [1] Organizational Support - The grants aim to strengthen communities by supporting organizations focused on education, human services, arts and culture, and community development [1] - Notable grantees include Alabama Coastal Foundation, American National Red Cross, and Boys & Girls Clubs of the Gulf Coast, among others [2]

Financial Position - Total assets increased to $26,726,165 at September 30, 2025, from $18,034,868 at December 31, 2024, reflecting an increase of $7,979,299 due to the acquisition of The First[197]. - Total deposits increased to $21,424,555 as of September 30, 2025, up from $14,572,612 at December 31, 2024, reflecting a growth of 47.5%[206]. - Total shareholders' equity increased to $3,825,778 at September 30, 2025, from $2,678,318 at December 31, 2024, driven by the merger with The First and current period earnings[312]. - The estimated amount of uninsured and uncollateralized deposits at September 30, 2025 was $6,878,118[297]. Loans and Credit Quality - Total loans, excluding loans held for sale, rose to $19,025,521 at September 30, 2025, up from $12,885,020 at December 31, 2024, with an increase of $5,171,236 attributed to the merger[203]. - The largest concentration of loans was in non-owner occupied commercial mortgage term loans, comprising 32.17% of total loans at September 30, 2025[203]. - The allowance for credit losses totaled $297,591, representing an increase from $201,756 as of December 31, 2024[268]. - The provision for credit losses on loans for the first nine months of 2025 was $87,100, significantly higher than $8,148 for the same period in 2024[270]. - Net charge-offs for the nine months ended September 30, 2025, amounted to $16,268, compared to $6,348 for the same period in 2024, indicating a rise in credit losses[272]. Income and Expenses - Net income for Q3 2025 was $59,788, down from $72,455 in Q3 2024, resulting in a decrease in basic and diluted EPS from $1.18 to $0.63[211]. - Noninterest income decreased to $46,026 in Q3 2025 from $89,299 in Q3 2024, primarily due to a prior year gain on the sale of the Company's insurance agency[232]. - Noninterest expense for the third quarter of 2025 was $183,830 million, compared to $121,983 million in 2024, primarily due to $38,764 million in merger-related expenses[241]. - Salaries and employee benefits increased to $98,982 million for the third quarter of 2025, up from $71,307 million in 2024[242]. Interest Income and Margin - Net interest income for the three months ended September 30, 2025, was $223,520, compared to $130,998 for the same period in 2024, representing a year-over-year increase of 70.4%[215]. - For the three months ended September 30, 2025, interest income was $355,709, an increase from $231,621 in the same period of 2024, reflecting a growth of 53.5%[221]. - The net interest margin for the three months ended September 30, 2025, was 3.85%, up from 3.36% in the same period of 2024[220]. - The total interest-earning assets increased to $23,527,519 for the three months ended September 30, 2025, from $15,807,569 in 2024, marking a 48.8% rise[221]. Merger Impact - The company completed its merger with The First on April 1, 2025, integrating its operations and expanding its market presence[196]. - The addition of The First's loan portfolio and strong organic loan growth contributed significantly to the increase in net interest income[220]. - The company incurred merger and conversion related expenses of $17,494 in Q3 2025, impacting diluted EPS by $(0.14)[213]. - The company assumed $298,250 of FHLB advances due to the merger with The First, contributing to increased short-term borrowings[209]. Risk Management - The company entered into interest rate contracts with notional amounts of $1,602,805 to manage interest rate risk exposure[307]. - The projected impact of a +100 basis point change in interest rates would result in a 2.53% increase in Economic Value Equity (EVE) and a 2.47% increase in earnings at risk (net interest income) for the 1-12 month period[288]. - The company has opted for a two-year delay in the estimated impact of CECL on regulatory capital, with a three-year transitional period starting January 1, 2022[316]. Capital Ratios - Renasant Corporation's Common Equity Tier 1 capital ratio as of September 30, 2025, is 11.04%, exceeding the minimum requirement of 6.50%[316]. - Renasant Bank's Total Risk-Based Capital Ratio is 13.05% as of September 30, 2025, above the minimum requirement of 10.00%[316]. - The Tier 1 Leverage Ratio for Renasant Corporation is 9.46% as of September 30, 2025, surpassing the minimum requirement of 5.00%[316].

Financial Data and Key Metrics Changes - The company's net income for Q3 was $59.8 million, or $0.63 per diluted share, with adjusted earnings of $72.9 million, or $0.77 per diluted share, excluding merger charges [6] - Loans increased by $462 million on a linked quarter basis, representing a 9.9% annualized growth [6] - Deposits decreased by $158 million from the second quarter, primarily due to a seasonal decline in public funds of $169 million [6] - The reported net interest margin remained flat at 3.85%, while the adjusted margin increased by four basis points to 3.62% [7] - Adjusted return on average assets improved by 12 basis points to 1.09%, and adjusted return on tangible common equity rose by 296 basis points to 14.22% [8] Business Line Data and Key Metrics Changes - Non-interest income for Q3 was $46 million, showing a linked quarter decrease of $0.841 million, excluding the gain on sale of MSR assets in Q2 [9] - Non-interest expense for Q3 was $183.8 million, excluding merger and conversion expenses of $17.5 million, with a linked quarter increase of $3.6 million [9] Market Data and Key Metrics Changes - The company experienced loan growth across all geographic areas and credit channels, including small business lending and commercial lending units [15][17] - The Gulf Coast market showed good growth, benefiting from the merger with The First Bancshares, which expanded lending capabilities [17] Company Strategy and Development Direction - The integration with The First Bancshares is progressing well, with systems conversion completed in early August, aiming to create a high-performing Southeast bank [4] - The company is focused on achieving profitability goals related to return on assets, return on tangible common equity, and efficiency ratio [4] - Future growth is expected to come from improved operating leverage and disciplined expense management [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the third quarter results and the positive momentum heading into Q4, with expectations for continued loan growth [10] - The company is monitoring the interest rate environment closely, particularly the 10-year Treasury yield, which could impact prepayment speeds and loan payoffs [50][76] - Management indicated that they are well-positioned to capitalize on opportunities in the market, especially in light of ongoing M&A activity in the region [53] Other Important Information - The company recorded a credit loss provision on loans of $10.5 million, with net charge-offs of $4.3 million [8] - The adjusted efficiency ratio improved by about 0.4 percentage points, with expectations for further improvements in upcoming quarters [9] Q&A Session Summary Question: Can you provide insights on loan growth and the pipeline, particularly in legacy markets like the Gulf Coast? - Management noted that loan growth was strong across all areas, with good performance in the Gulf Coast due to expanded lending capabilities from the merger [15][17] Question: What is the expected pace of expense savings moving forward? - Management anticipates a decrease in core non-interest expenses by $2 million to $3 million in Q4 and Q1 of 2026, with a focus on maintaining efficiency [19] Question: Can you elaborate on the drivers of core margin expansion in Q3? - Management indicated that while there was expansion in Q3, modest contraction is expected in Q4, with a general outlook of modest expansion for 2026 [25] Question: What are the plans for deposit growth in the current rate environment? - Management emphasized the goal of growing core deposits in line with loan growth, despite seasonal fluctuations affecting public funds [37] Question: How does the company plan to manage capital moving forward? - Management is considering various capital levers, including stock buybacks, to support organic growth and maintain a strong capital base [35] Question: What are the expectations for loan and deposit growth moving forward? - Management is targeting mid-single-digit growth for loans and deposits, with a focus on identifying opportunities in the current market [76]

Financial Data and Key Metrics Changes - The company's net income for Q3 was $59.8 million, or $0.63 per diluted share, with adjusted earnings of $72.9 million, or $0.77 per diluted share, excluding merger charges [6] - Loans increased by $462 million on a linked quarter basis, representing a 9.9% annualized growth [6] - Deposits decreased by $158 million from the second quarter, primarily due to a seasonal decline in public funds of $169 million [6] - The reported net interest margin remained flat at 3.85%, while the adjusted margin increased by four basis points to 3.62% [7] - Adjusted return on average assets improved by 12 basis points to 1.09%, and adjusted return on tangible common equity rose by 296 basis points to 14.22% [8] Business Line Data and Key Metrics Changes - Non-interest income for Q3 was $46 million, showing a linked quarter decrease of $0.841 million, excluding the gain on sale of MSR assets in Q2 [9] - Non-interest expense for Q3 was $183.8 million, excluding merger and conversion expenses of $17.5 million, with a linked quarter increase of $3.6 million [9] Market Data and Key Metrics Changes - The company experienced loan growth across all geographic areas and credit channels, including small business lending and corporate lending [15][17] - The Gulf Coast market showed good growth, benefiting from the expanded lending capabilities post-merger [17] Company Strategy and Development Direction - The integration with The First is progressing well, with systems conversion completed in early August, aiming to create a high-performing Southeast bank [4] - The company is focused on achieving profitability goals related to return on assets, return on tangible common equity, and efficiency ratio [4] - Future profitability improvements are anticipated as efficiency savings from the merger are realized [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the third quarter results and the positive momentum heading into Q4, with expectations for continued growth [10] - The company is closely monitoring the interest rate environment, particularly the 10-year Treasury yield, which could impact loan payoffs and prepayments [50][76] Other Important Information - The company recorded a credit loss provision on loans of $10.5 million, with net charge-offs of $4.3 million [8] - The adjusted efficiency ratio declined by about 0.4 percentage points, with expectations for further improvements in upcoming quarters [9] Q&A Session Summary Question: Can you provide insights on loan growth and pipeline perspective? - Management noted that loan growth was strong across all categories and regions, with expectations for continued growth in Q4 [14][17] Question: What is the pace of expense savings from the merger? - Management indicated a projected decrease in core non-interest expenses of $2 million to $3 million in Q4 and Q1 of 2026 [19] Question: Can you elaborate on the drivers of core margin expansion? - Management expects modest contraction in the margin for Q4, with a general outlook of modest expansion for 2026, assuming interest rate cuts [25] Question: What are the plans for deposit growth? - The company aims to grow core deposits in line with loan growth, with a focus on generating deposits regardless of loan growth trends [38] Question: How does the company view capital management and buybacks? - Management is considering buybacks as a capital lever, with expectations to grow capital ratios significantly by the end of 2026 [35] Question: What is the outlook for criticized loans? - Management reported a broad-based increase in criticized loans but does not anticipate loss exposure from this increase [27][28] Question: How does the company plan to improve profitability? - Management emphasized the importance of accountability and performance at the individual and market levels to enhance profitability [73]

Financial Data and Key Metrics Changes - The company's net income for Q3 was $59.8 million, or $0.63 per diluted share, with adjusted earnings of $72.9 million, or $0.77 per diluted share, excluding merger charges [5][6] - Loans increased by $462 million on a linked quarter basis, representing a 9.9% annualized growth [5][6] - Deposits decreased by $158 million from the second quarter, primarily due to a seasonal decline in public funds [5][6] - The adjusted return on average assets improved by 12 basis points to 1.09%, while the adjusted return on tangible common equity rose by 296 basis points to 14.22% [7][8] Business Line Data and Key Metrics Changes - Net interest income growth was driven by improved net interest margin and loan growth [9] - Non-interest income for Q3 was $46 million, showing a linked quarter decrease of $0.841 million, excluding gains from the sale of MSR assets in Q2 [9] - Non-interest expense for Q3 was $183.8 million, excluding merger and conversion expenses of $17.5 million, with a linked quarter increase of $3.6 million [9] Market Data and Key Metrics Changes - The reported net interest margin remained flat at 3.85%, while the adjusted margin increased by four basis points to 3.62% [6] - The adjusted total cost of deposits rose by four basis points to 2.08%, and adjusted loan yields increased by five basis points to 6.23% [6] Company Strategy and Development Direction - The integration with The First is progressing well, with systems conversion completed in early August, aiming to create a high-performing Southeast bank [4][5] - The company is focused on achieving profitability goals related to return on assets, return on tangible common equity, and efficiency ratio [4] - Future profitability improvements are anticipated as efficiency savings are realized post-integration [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the loan growth and overall performance, indicating that Q3 results position the company to achieve its financial goals [5][10] - The company expects to see additional profitability improvements in upcoming quarters as synergies from the merger become more evident [9] - Management acknowledged the potential for increased payoffs in Q4 due to the current interest rate environment [46][70] Other Important Information - The company recorded a credit loss provision on loans of $10.5 million, with net charge-offs of $4.3 million [8] - All regulatory capital ratios remain above required minimums, indicating a well-capitalized status [7][8] Q&A Session Summary Question: Can you provide insights on loan growth and pipeline perspective? - Management noted that loan growth was strong across all categories and regions, with expectations for continued growth in Q4 and beyond [13][17] Question: What is the pace of expense savings from the merger? - Management indicated expectations of a $2 million to $3 million decrease in core non-interest expenses for Q4 and Q1 of 2026 [19][20] Question: Can you elaborate on the drivers of core margin expansion? - Management expressed that modest contraction in margin is expected in Q4, with a general outlook of modest expansion for 2026 [23][24] Question: How does the company view capital management and buybacks? - Management highlighted that capital ratios could grow by 60 to 70 basis points by year-end 2026, with buybacks being a focus for future capital management [31][32] Question: What are the plans for deposit growth in the current rate environment? - Management emphasized the goal of growing core deposits in line with loan growth, despite seasonal fluctuations [35][36] Question: How does the company plan to improve revenue growth? - Management is focused on improving accountability and performance at the individual and market levels to enhance revenue growth while managing expenses [66][68]

Third Quarter 2025 Earnings Call Forward-Looking Statements This presentation may contain various statements about Renasant Corporation ("Renasant," "we," "our," or "us") that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "projects," "anticipates," "intends," "estimates," "plan ...

Core Insights - Renasant reported revenue of $269.55 million for the quarter ended September 2025, reflecting a year-over-year increase of 22.4% and a surprise of +1.3% over the Zacks Consensus Estimate of $266.1 million [1] - The earnings per share (EPS) for the quarter was $0.77, compared to $0.70 in the same quarter last year, although it fell short of the consensus estimate of $0.79, resulting in an EPS surprise of -2.53% [1] Financial Performance Metrics - Net Interest Margin was reported at 3.9%, exceeding the three-analyst average estimate of 3.7% [4] - The Efficiency Ratio (GAAP) was 67.1%, significantly higher than the estimated 59.9% by three analysts [4] - Total nonperforming loans amounted to $171.55 million, surpassing the average estimate of $137.2 million by two analysts [4] - Annualized net loan charge-offs as a percentage of average loans were 0.1%, better than the average estimate of 0.2% [4] - Total nonperforming assets reached $182.13 million, compared to the two-analyst average estimate of $149.42 million [4] - Average balance of total interest-earning assets was $23.53 billion, slightly above the estimated $23.39 billion by two analysts [4] - Net Interest Income was reported at $223.52 million, exceeding the average estimate of $219.2 million based on three analysts [4] - Net Interest Income (FTE) was $228.13 million, compared to the average estimate of $223.1 million by three analysts [4] - Total Noninterest Income was $46.03 million, slightly below the average estimate of $46.9 million by three analysts [4] Stock Performance - Renasant shares have returned -5.2% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Renasant's quarterly earnings of $0.77 per share fell short of the Zacks Consensus Estimate of $0.79 per share, marking an earnings surprise of -2.53% [1] Financial Performance - Renasant reported revenues of $269.55 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 1.30% and showing an increase from $220.3 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus revenue estimates four times [2] Stock Performance - Renasant shares have declined approximately 2.2% since the beginning of the year, contrasting with the S&P 500's gain of 16.9% [3] - The current Zacks Rank for Renasant is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.80 on revenues of $265.97 million, and for the current fiscal year, it is $2.98 on revenues of $969.87 million [7] - The estimate revisions trend for Renasant was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Banks - Southeast industry, to which Renasant belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Points - Renasant Corporation's board of directors approved a quarterly cash dividend of $0.23 per share, an increase of $0.01 from the previous quarter [1] - The dividend will be paid on January 1, 2026, to shareholders of record as of December 18, 2025 [1] Company Overview - Renasant Corporation is the parent company of Renasant Bank, which has been in operation for 121 years [2] - The company has approximately $26.7 billion in assets and operates 289 banking, lending, mortgage, and wealth management offices throughout the Southeast [2] - Renasant also offers factoring and asset-based lending services on a nationwide basis [2]