Renasant's Q3 Net Income Dips Amidst Acquisition Costs, Credit Loss Surge

TL;DR

**RNST's Q3 earnings are a mixed bag, with strong revenue growth overshadowed by acquisition costs and a concerning jump in credit loss provisions – proceed with caution.**

AI Summary

RENASANT CORP (RNST) reported a significant increase in total assets to $26.73 billion as of September 30, 2025, up from $18.03 billion at December 31, 2024, primarily driven by the acquisition of The First Bancshares, Inc. on April 1, 2025. Net income for the three months ended September 30, 2025, decreased to $59.79 million, down from $72.46 million in the same period of 2024, representing a 17.5% decline. Basic earnings per share also fell from $1.18 to $0.63 year-over-year for the quarter. For the nine months ended September 30, 2025, net income was $102.32 million, a substantial decrease from $150.71 million in the prior year, a 32.1% drop. Net interest income, however, saw a robust increase, reaching $223.52 million for the quarter, up from $130.99 million in Q3 2024, and $576.58 million for the nine months, up from $379.31 million. This growth was largely offset by a sharp rise in the provision for credit losses, which surged to $10.45 million for the quarter from $0.94 million, and to $96.52 million for the nine months from $6.67 million. Noninterest expense also increased significantly to $183.83 million for the quarter, up from $121.98 million, partly due to $17.49 million in merger and conversion related expenses.

Why It Matters

Renasant's acquisition of The First Bancshares, valued at over $1 billion, is a game-changer, significantly expanding its footprint across the Southeast and boosting its asset base by nearly 50%. While this strategic move promises long-term synergies and market share gains, investors need to weigh the immediate impact of increased merger-related expenses and a substantial rise in credit loss provisions, which are currently eroding quarterly net income and EPS. Employees of both entities face integration challenges and potential restructuring, while customers could benefit from an expanded branch network and service offerings. In a competitive banking landscape, this acquisition positions Renasant for future growth, but the market will closely watch its ability to successfully integrate operations and realize the projected synergies.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in the provision for credit losses, which jumped from $935 thousand in Q3 2024 to $10.45 million in Q3 2025, and from $6.67 million to $96.52 million for the nine months ended September 30, 2025. Additionally, merger and conversion related expenses of $17.49 million for the quarter and $38.76 million for the nine months ended September 30, 2025, indicate ongoing integration challenges and costs associated with the acquisition of The First Bancshares, Inc.

Analyst Insight

Investors should monitor Renasant's upcoming filings for signs of successful integration of The First Bancshares, Inc. and stabilization in credit loss provisions. While the acquisition offers long-term growth potential, the immediate pressure on net income and EPS suggests a 'wait and see' approach is prudent until the company demonstrates clear progress in realizing synergies and managing credit quality post-merger.

Financial Highlights

debt To Equity

5.99

revenue

$223.52M

operating Margin

N/A

total Assets

$26.73B

total Debt

$1.17B

net Income

$59.79M

eps

$0.63

gross Margin

N/A

cash Position

$1.08B

revenue Growth

+70.64%

Revenue Breakdown

Key Numbers

• $26.73B — Total Assets (Increased from $18.03B at Dec 31, 2024, primarily due to acquisition.)
• $59.79M — Net Income (Q3 2025) (Decreased 17.5% from $72.46M in Q3 2024.)
• $102.32M — Net Income (YTD Sep 2025) (Decreased 32.1% from $150.71M in YTD Sep 2024.)
• $0.63 — Basic EPS (Q3 2025) (Down from $1.18 in Q3 2024.)
• $223.52M — Net Interest Income (Q3 2025) (Increased from $130.99M in Q3 2024.)
• $10.45M — Provision for Credit Losses (Q3 2025) (Significantly up from $0.94M in Q3 2024.)
• $96.52M — Provision for Credit Losses (YTD Sep 2025) (Substantially increased from $6.67M in YTD Sep 2024.)
• $183.83M — Total Noninterest Expense (Q3 2025) (Increased from $121.98M in Q3 2024, partly due to merger costs.)
• $1.05B — Acquisition Value (Value of The First Bancshares, Inc. acquisition completed April 1, 2025.)
• 30,811,851 — Shares Issued for Acquisition (Common stock issued for The First Bancshares, Inc. acquisition.)

Key Players & Entities

• RENASANT CORP (company) — registrant
• The First Bancshares, Inc. (company) — acquired company
• Renasant Bank (company) — subsidiary of Renasant Corp
• SEC (regulator) — Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• $26.73 billion (dollar_amount) — total assets as of September 30, 2025
• $1.05 billion (dollar_amount) — value of The First Bancshares, Inc. acquisition
• $59.79 million (dollar_amount) — net income for Q3 2025
• $10.45 million (dollar_amount) — provision for credit losses for Q3 2025
• $17.49 million (dollar_amount) — merger and conversion related expenses for Q3 2025

FAQ

Risk Factors

• Increased Provision for Credit Losses [high — financial]: The provision for credit losses surged to $10.45 million for Q3 2025, a stark increase from $0.94 million in Q3 2024. For the nine months, it rose to $96.52 million from $6.67 million. This indicates a significant deterioration in credit quality or a more conservative outlook on loan portfolio performance.
• Merger and Conversion Expenses [medium — operational]: The company incurred $17.49 million in merger and conversion related expenses during Q3 2025, contributing to the overall rise in noninterest expense. These costs are associated with the acquisition of The First Bancshares, Inc.
• Impact of Acquisition on Profitability [high — financial]: Despite a substantial increase in total assets to $26.73 billion due to the acquisition, net income for Q3 2025 decreased by 17.5% to $59.79 million, and basic EPS fell from $1.18 to $0.63. The nine-month net income dropped 32.1% to $102.32 million.
• Unrealized Losses on Securities [medium — market]: As of September 30, 2025, Renasant Corp. had gross unrealized losses of $102.48 million on its available-for-sale securities, compared to $113,988 in unrealized losses at December 31, 2024. This reflects market value declines impacting the 'Accumulated other comprehensive loss' on the balance sheet.
• Integration of Acquired Entity [medium — regulatory]: The successful integration of The First Bancshares, Inc. is critical. Challenges in integrating systems, cultures, and regulatory compliance could lead to operational disruptions and increased costs, impacting financial performance.

Industry Context

The banking industry continues to navigate a complex environment characterized by rising interest rates, evolving regulatory landscapes, and ongoing consolidation. Banks are focused on managing net interest margins, controlling operating expenses, and assessing credit risk in a potentially slowing economy. Digital transformation and customer experience remain key competitive differentiators.

Regulatory Implications

The acquisition of The First Bancshares, Inc. subjects Renasant Corp. to increased regulatory scrutiny regarding capital adequacy, risk management, and integration compliance. Potential changes in interest rate policies and credit loss provisioning requirements could also impact future financial performance.

What Investors Should Do

1. Monitor the integration progress and associated costs of The First Bancshares, Inc. acquisition.
2. Analyze the trend and drivers of the provision for credit losses.
3. Evaluate the impact of unrealized losses on available-for-sale securities on capital and earnings.
4. Assess the sustainability of net interest income growth against rising operating and credit loss expenses.

Key Dates

• 2025-04-01: Acquisition of The First Bancshares, Inc. completed — Significantly increased total assets and expanded the company's footprint, but also introduced integration costs and potential credit risks.
• 2025-09-30: End of Third Quarter — Reporting period for the current 10-Q, showing substantial asset growth but a decline in net income and EPS year-over-year.
• 2024-12-31: End of Fiscal Year 2024 — Prior period balance sheet data for comparison, showing total assets of $18.03 billion before the major acquisition.

Glossary

Provision for credit losses

An expense set aside by a financial institution to cover potential loan defaults and uncollectible debts. It reflects management's estimate of potential losses in the loan portfolio. (A significant increase in this provision ($10.45M in Q3 2025 vs $0.94M in Q3 2024) is a key indicator of potential credit quality issues or increased risk perception.)

Net interest income

The difference between the interest income generated by a bank (from loans and investments) and the interest expense it pays (on deposits and borrowings). (This metric saw strong growth ($223.52M in Q3 2025 vs $130.99M in Q3 2024), driven by higher interest-earning assets, but was offset by increased provisions.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. It represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and recognized. (Goodwill increased substantially from $988.9M to $1.41B, reflecting the premium paid for the acquisition of The First Bancshares, Inc.)

Available-for-sale securities

Investments in debt or equity securities that are not classified as held-to-maturity or trading securities. Their unrealized gains and losses are reported in other comprehensive income. (The company holds $2.51B in these securities, which experienced significant unrealized losses ($102.48M) as of Q3 2025, impacting equity through accumulated other comprehensive loss.)

Noninterest expense

Expenses incurred by a financial institution that are not directly related to interest payments, such as salaries, rent, technology, and marketing costs. (Total noninterest expense rose to $183.83M in Q3 2025 from $121.98M in Q3 2024, partly due to $17.49M in merger-related costs.)

Year-Over-Year Comparison

Compared to the prior year's filing (presumably for the period ending September 30, 2024), Renasant Corp. has experienced a significant expansion in its balance sheet, with total assets growing from $18.03 billion to $26.73 billion, primarily due to the acquisition of The First Bancshares, Inc. However, this growth has come at the cost of profitability, as net income for the quarter declined by 17.5% and EPS fell from $1.18 to $0.63. The provision for credit losses has also surged dramatically, indicating a more challenging credit environment or a more conservative risk assessment. Noninterest expenses have risen substantially, partly due to merger-related costs, further pressuring margins.

Key Financial Figures

• $5.00 — ange on which registered Common stock, $5.00 par value per share RNST The New York S

Filing Documents

• rnst-20250930.htm (10-Q) — 5761KB
• rnst9302025ex311.htm (EX-31.1) — 9KB
• rnst9302025ex312.htm (EX-31.2) — 9KB
• rnst9302025ex321.htm (EX-32.1) — 5KB
• rnst9302025ex322.htm (EX-32.2) — 6KB
• 0000715072-25-000234.txt ( ) — 27806KB
• rnst-20250930.xsd (EX-101.SCH) — 92KB
• rnst-20250930_cal.xml (EX-101.CAL) — 190KB
• rnst-20250930_def.xml (EX-101.DEF) — 552KB
• rnst-20250930_lab.xml (EX-101.LAB) — 1137KB
• rnst-20250930_pre.xml (EX-101.PRE) — 861KB
• rnst-20250930_htm.xml (XML) — 7974KB

Financial Information

PART I Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets 1 Consolidated Statements of Income 2 Consolidated Statements of Comprehensive Income 3 Consolidated Statements of Changes in Shareholders' Equity 4 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 56

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 83

Controls and Procedures

Item 4. Controls and Procedures 83

Other Information

PART II Other Information

Risk Factors

Item 1A. Risk Factors 84

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 84

Other Information

Item 5. Other Information 85

Exhibits

Item 6. Exhibits 85

SIGNATURES

SIGNATURES 86 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS Renasant Corporation and Subsidiaries Consolidated Balance Sheets (In Thousands, Except Share Data) (Unaudited) September 30, 2025 December 31, 2024 Assets Cash and due from banks $ 284,485 $ 198,408 Interest-bearing balances with banks 799,300 893,624 Cash and cash equivalents 1,083,785 1,092,032 Securities held to maturity (fair value of $ 976,690 and $ 1,002,544 , respectively) 1,051,884 1,126,112 Securities available for sale, at fair value (amortized cost of $ 2,599,397 and $ 968,927 , respectively) 2,512,650 831,013 Loans held for sale, at fair value 286,779 246,171 Loans held for investment, net of unearned income 19,025,521 12,885,020 Allowance for credit losses on loans ( 297,591 ) ( 201,756 ) Loans, net 18,727,930 12,683,264 Premises and equipment, net 471,213 279,796 Other real estate owned, net 10,578 8,673 Goodwill 1,411,711 988,898 Other intangible assets, net 155,077 14,105 Bank-owned life insurance 488,920 391,810 Mortgage servicing rights, net 65,466 72,991 Other assets 460,172 300,003 Total assets $ 26,726,165 $ 18,034,868 Liabilities and shareholders' equity Liabilities Deposits Noninterest-bearing $ 5,238,431 $ 3,403,981 Interest-bearing 16,186,124 11,168,631 Total deposits 21,424,555 14,572,612 Short-term borrowings 606,063 108,018 Long-term debt 558,878 430,614 Other liabilities 310,891 245,306 Total liabilities 22,900,387 15,356,550 Shareholders' equity Preferred stock, $ 0.01 par value – 5,000,000 shares authorized; no shares issued and outstanding — — Common stock, $ 5.00 par value – 250,000,000 and 150,000,000 shares authorized, respectively; 97,722,397 and 66,484,225 shares issued, respectively; 95,020,881 and 63,565,690 shares outstanding, respectively 488,612 332,421 Treasury stock, at cost – 2,701,516 and 2,918,535 shares, respectively ( 90,297 ) ( 97,196 ) Additional paid-in capital 2,389,033 1,491,847 Retained earnings 1,139,600 1,093,854 Accumulated other c

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 1 – Summary of Significant Accounting Policies (In Thousands) Nature of Operations : Renasant Corporation (referred to herein as the "Company") owns and operates Renasant Bank ("Renasant Bank" or the "Bank"), Park Place Capital Corporation and Continental Republic Capital, LLC (doing business as "Republic Business Credit"). On July 1, 2024, the Bank sold substantially all of the assets of its subsidiary, Renasant Insurance, Inc. Through its subsidiaries, the Company offers a diversified range of financial, wealth management and fiduciary services to its retail and commercial customers from offices located throughout the Southeast and offers factoring and asset-based lending on a nationwide basis. Basis of Presentation : The accompanying unaudited consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the results for the interim periods presented have been included. For further information regarding the Company's significant accounting policies, refer to the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the "SEC"). Use of Estimates : The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompany

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 3 – Securities (In Thousands, Except Number of Securities) The amortized cost and fair value of securities available for sale were as follows as of the dates presented in the tables below. There was no allowance for credit losses allocated to any of the Company's available for sale securities as of September 30, 2025 or December 31, 2024. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2025 Obligations of states and political subdivisions $ 270,696 $ 5,318 $ ( 2,365 ) $ 273,649 Residential mortgage backed securities: Mortgage backed securities issued by U.S. Government agencies or sponsored enterprises 710,105 3,709 ( 17,508 ) 696,306 Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 739,005 2,978 ( 59,903 ) 682,080 Commercial mortgage backed securities: Mortgage backed securities issued by U.S. Government agencies or sponsored enterprises 100,337 221 ( 799 ) 99,759 Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 414,781 2,639 ( 18,669 ) 398,751 Other debt securities 364,473 871 ( 3,239 ) 362,105 $ 2,599,397 $ 15,736 $ ( 102,483 ) $ 2,512,650 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2024 Obligations of states and political subdivisions $ 20,266 $ 57 $ ( 2,269 ) $ 18,054 Residential mortgage backed securities: Mortgage backed securities issued by U.S. Government agencies or sponsored enterprises 185,292 81 ( 24,468 ) 160,905 Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 475,311 75 ( 86,870 ) 388,516 Commercial mortgage backed securities: Mortgage backed securities issued by U.S. Government agencies or sponsored enterprises 11,373 — ( 751 ) 10,622 Collateralized mortgage obligations issued by

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