Renasant (RNST) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $59.8 million ($0.63 per diluted share; adjusted $0.77), reflecting merger and conversion expenses and solid profitability despite deposit outflows and higher nonperforming loans.

• Achieved strong loan growth of $462.1 million (9.9% annualized), with broad-based contributions across geographies and lending units following the merger with The First.

• Integration with The First is progressing well, with systems conversion completed in August and operational synergies beginning to materialize.

• Total assets grew to $26.7 billion at September 30, 2025, up from $18.0 billion at year-end 2024, driven by the merger.

• A new $150 million stock repurchase program was approved, replacing the previous $100 million plan.

Financial highlights

• Net interest income for Q3 2025 was $228.1 million (FTE), with net interest margin at 3.85% and adjusted margin at 3.62%.

• Deposits decreased by $158.1 million, mainly due to public fund seasonality; noninterest income was $46.0 million, with mortgage banking income at $9.0 million.

• Noninterest expense was $183.8 million, up from $122.0 million in Q3 2024, mainly due to merger-related costs and expanded operations.

• Provision for credit losses on loans was $10.5 million in Q3 2025.

• Book value per share rose to $42.79 and tangible book value per share to $27.07 at September 30, 2025.

Outlook and guidance

• Management expects continued progress on merger integration, efficiency improvements, and cost savings, with core non-interest expense projected to decrease in Q4 and Q1 2026.

• Modest contraction in net interest margin is anticipated in Q4, with potential for expansion in 2026, assuming four rate cuts by year-end 2026.

• Loan and deposit growth targeted at mid-single digits, with Q4 prepayment speeds monitored due to interest rate curve changes.

• Focus remains on growing core deposits, managing funding costs, and maintaining strong credit quality.