Renasant (RN6) Q3 2026 Earnings Report

The call was predominantly positive, with year-over-year earnings and return metrics improving, strong loan and core deposit momentum, continued credit-quality improvement, expense discipline, active talent investments, and a strategically aligned merger expected to be EPS accretive. Offsetting challenges included declining total deposits, tight pricing competition, a lower reported net interest margin, elevated provision and charge-off levels, softer mortgage-related fee income, modestly higher near-term expenses, and merger-related tangible book value dilution. Highlights significantly outweighed the lowlights.

Management expects mid single digit balance sheet growth, with core deposit growth around 8% annualized and loan growth funded more in balance over time; core NIM has modest upside potential, with modest improvement over the next quarter or 2, assuming a December and 2 other hikes in 2027, while interest bearing deposit beta is probably upper 40s, low 50s and graduates from near to mid 50s. Q4 expenses are expected to show a slight increase, fee income probably has a little more softness driven mainly by mortgage, and wealth is expected to continue with low single digit increases. The Commercial Bank and Trust transaction is expected to close sometime in the first quarter of 27, be approximately 4% accretive to EPS and 1.5% dilutive to tangible book value per share, with an estimated earn back of just under 2 years and CET1 approximately 11% at close; fully phased, it is about 70 basis points accretive to ROTCE, roughly 5 basis points accretive to NIM and 5 basis points to ROA. Q4 total accretable yield is estimated at around $10 million, including about $1 million accelerated, while buybacks are expected to remain active under the $175 million authorization, just maybe not quite as active over the next 12 months.