Core Insights - Renasant Corporation completed a merger with The First Bancshares, valued at $1.2 billion, which expanded its market presence [1] Company Summary - The merger occurred four months prior to the article's publication date, indicating a recent strategic move by Renasant Corporation [1] - The company operates within a financial market that is believed to be efficient, with most stocks reflecting their real current value [1] Investment Opportunities - The article suggests that the best profit opportunities in individual stocks arise from those that are less widely followed or do not accurately reflect existing market opportunities [1]

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]

Financial Performance - Net income was $59.8 million with diluted EPS of $0.63 and adjusted diluted EPS of $0.77[13] - Net interest margin was 3.85%, while adjusted net interest margin was 3.62%, up 4 basis points linked quarter[13] - The company redeemed $60.0 million subordinated notes acquired from The First Bancshares, Inc on October 1, 2025[13] - The Board of Directors approved a $150.0 million stock repurchase program, replacing the previous $100.0 million program[36] Balance Sheet - Assets totaled $26.7 billion[6] - Loans increased by $462.1 million, representing a 9.9% annualized increase, reaching $19.0 billion[6, 13] - Deposits decreased by $158.1 million, primarily due to a $169.6 million decrease in public funds, totaling $21.4 billion[6, 13] - Noninterest-bearing deposits decreased by $117.7 million and represented 24.5% of total deposits[13] - Equity was $3.8 billion[6] Asset Quality - Nonperforming loans represented 0.90% of total loans, an increase of 14 basis points linked quarter[13] - The ratio of allowance for credit losses on loans to total loans decreased 1 basis point to 1.56%[13] Loan and Deposit Composition - Loan distribution by state: Georgia accounted for 27%, Mississippi 25%, Florida 22%, Tennessee 10%, and others 16%[7] - Deposit distribution by state: Mississippi accounted for 39%, Georgia 28%, Alabama 14%, Florida 9%, Tennessee 7%, and others 3%[7]

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]