Renasant Reports Adjusted EPS of $0.86 and Revenue Below Expectations
Key Facts
Renasant said fully taxable-equivalent net interest income was $228.6 million in the third quarter of 2026, up $0.9 million from the previous quarter, while the net interest margin fell to 3.77%, down 6 basis points. Adjusted earnings per share and revenue came in below analyst estimates, according to Investing.com: EPS was $0.86 versus expectations of $0.94, and revenue was $272.95 million versus an estimate of $282.34 million. The company's shares closed at $41.58 on October 27, compared with $41.75 in the previous session, according to EL7 data. The stock then fell 4.47% to $39.72 in after-hours trading, according to Investing.com. The company said its earnings call with analysts would be webcast on October 28 at 10 a.m. Eastern Time.
Renasant's net income was $78.949 million in the third quarter, up from $59.788 million in the same period of 2025, but down from $87.091 million in the second quarter of 2026. The comparison puts quarterly results between year-over-year improvement and a sequential decline, while adjusted EPS fell short of market estimates. Chief Executive Kevin Chapman said the results reflected strong loan growth, with record loan production, continued momentum in core deposit growth and stability in the core net interest margin. He also cited improvements in criticized and nonperforming loans. The indicators point to divergent trends in the bank's performance: lending growth and improvement in some credit metrics, alongside lower net income than in the previous quarter and a sequential decline in the margin.
Loans increased by $555.9 million from the previous quarter, equivalent to annualized growth of 11.5%, the company said. Renasant attributed the increase to strong loan production during the quarter and lower prepayment activity compared with the previous period. On the funding side, deposits declined by $73.2 million as of September 30 compared with the previous quarter. Public funds deposits recorded outflows of $214.7 million, partly offset by growth in consumer and business deposits. This means loan growth coincided with a decline in total deposits, while deposit trends varied across customer segments and funding sources.
Nonperforming and criticized loan ratios improved during the quarter, according to the company's statement. Nonperforming loans fell to 0.89% of total loans on September 30, from 0.97% on June 30. Criticized loans, which include classified loans and those under special mention, also declined to 2.50% of total loans, compared with 2.66% at the end of June. These ratios reflect improvement in two measures used to monitor loan portfolio quality during the quarter. Chapman said criticized and nonperforming loan levels improved, alongside growth in loans and core deposits.
Elsewhere in the banking business, mortgage banking income fell by $1.9 million compared with the second quarter, which the company attributed in part to higher mortgage interest rates. The volume of loans locked in this business was $520.6 million in the third quarter, down $91 million from the previous quarter. The decline in mortgage banking income adds sequential pressure to the results, alongside lower net income and net interest margin than in the second quarter. By contrast, net interest income edged higher, and loans posted strong growth, according to the company. The company had scheduled its earnings call to discuss the quarter's results for October 28 at 10 a.m. Eastern Time.