Renasant Corporation

What they do

Renasant Corporation is a state commercial bank holding company that operates through its wholly owned subsidiary Renasant Bank and its subsidiaries. The company takes deposits and makes loans, and also generates fee income from mortgage banking, wealth management, insurance, and factoring and asset-based lending through units such as Republic Business Credit. It operates from its principal offices at 209 Troy Street, Tupelo, Mississippi, and its common stock trades on the NYSE under RNST. As of June 30, 2026, the company reported total assets of $27.00 billion and total liabilities of $23.13 billion.

Revenue drivers

• Net interest income — Earned from loans and securities funded by deposits and borrowings; net interest income on a fully tax equivalent basis was $227.7 million in Q2 2026, down $0.8 million linked quarter, with a 3.83% net interest margin.
• Mortgage banking — Generates gain-on-sale and related mortgage fee income; the mortgage division produced $611.6 million of interest rate lock volume in Q2 2026, up $69.3 million linked quarter, at a 1.57% gain on sale margin.
• Noninterest income — Includes deposit service charges, wealth management, insurance, and other fees; it increased $0.9 million linked quarter in Q2 2026.
• Republic Business Credit — The bank's factoring/asset-based lending subsidiary acquired a $58.3 million loan portfolio during Q2 2026, contributing to loan growth.

Recent performance

For the second quarter of 2026, Renasant reported net income of $87.1 million, with both diluted EPS and adjusted diluted EPS of $0.94. Six-month 2026 net income was $175.3 million versus $42.5 million in the first half of 2025, a period that included $15.9 million of after-tax merger and conversion expenses and a $50.0 million after-tax Day 1 acquisition provision. Net interest income on a fully tax equivalent basis was $227.7 million in Q2 2026, down $0.8 million linked quarter, with net interest margin of 3.83%. Loans increased $220.9 million linked quarter, a 4.7% annualized net increase, while deposits decreased $398.4 million linked quarter, including $367.7 million of seasonal public fund outflows. Noninterest expense rose $6.2 million linked quarter on deferred compensation accruals, higher health insurance claims, and annual merit increases.

Strategy

Management completed the acquisition of The First Bancshares, Inc. on April 1, 2025, and cites integration and revenue synergies as a focus. The company has been investing in its business through Republic Business Credit portfolio acquisitions and purchased $162.4 million of securities in Q2 2026. It raised its quarterly dividend to $0.24 per share effective April 28, 2026, and in Q2 2026 repurchased $60.0 million of common stock at a weighted average price of $39.54 under a $250.0 million program authorized through October 2026. On May 7, 2026, the company completed a $300.0 million subordinated debt offering. Management also states it is working to remediate the material weakness in internal control over financial reporting identified in its FY2025 Form 10-K.

Risks

• Integration and contingent risk from The First Bancshares merger — The company may not realize expected cost savings or retain acquired customers, and it faces potential exposure to unknown or contingent liabilities assumed in the April 1, 2025 merger.
• Internal control material weakness — A material weakness in internal control over financial reporting was identified in the FY2025 Form 10-K, and management's ability to remediate it is an open risk.
• Credit and allowance adequacy — Inaccurate assumptions could leave the allowance for credit losses insufficient, and loan or investment portfolio quality could deteriorate with borrower industries or interest rates.
• Deposit mix, funding costs and interest rates — Q2 2026 deposits fell $398.4 million linked quarter on seasonal public fund outflows, deposit cost was 1.96% (up 2 basis points linked) and noninterest-bearing deposits were 23.2% of total, leaving funding sensitive to rate and mix shifts.

Outlook

CEO Kevin D. Chapman said second quarter results were strong and that the first six months of 2026 were 'well ahead of last year's levels,' with the team positioned to pursue added growth throughout the footprint. No specific numerical guidance for future periods is given in the release. Management's comments point to continued profitability while it integrates recent acquisitions and manages deposit costs and loan growth.