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Renasant Corp. (RNST)
NYSE:RNST
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Renasant (RNST) AI Stock Analysis

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RNST

Renasant

(NYSE:RNST)

Rating:77Outperform
Price Target:
$43.00
â–²(13.07%Upside)
Renasant's strong financial performance, coupled with positive earnings call sentiment, underpins its solid stock score. Technical indicators suggest potential short-term volatility, but the valuation remains reasonable, supporting a stable long-term outlook.

Renasant (RNST) vs. SPDR S&P 500 ETF (SPY)

Renasant Business Overview & Revenue Model

Company DescriptionRenasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate–1-4 family mortgage; real estate–commercial mortgage; real estate–construction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, such as commercial and personal insurance products through insurance carriers. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates. As of December 31, 2021, the company operated a network of 189 banking, lending, and mortgage offices located in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee; 150 full-service branches and 11 limited-service branches; 173 ATMs; and 38 interactive teller machines. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi.
How the Company Makes MoneyRenasant Corporation generates revenue primarily through its banking and financial services operations. The company's key revenue streams include interest income from loans and leases to individuals and businesses, as well as interest earned on investment securities. Additionally, Renasant earns non-interest income from service charges on deposit accounts, mortgage banking income, wealth management fees, and insurance commissions. The company benefits from its expansive network of branches and ATMs, as well as its digital banking platform, which facilitates customer engagement and transactional efficiency. Strategic partnerships and acquisitions also play a role in enhancing Renasant's market presence and revenue potential.

Renasant Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: 0.00%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with significant achievements in merger integration, financial growth, and efficiency improvements. However, there were some challenges with elevated charge-offs and ongoing merger-related expenses. Overall, the positive aspects significantly outweigh the negatives.
Q2-2025 Updates
Positive Updates
Successful Merger with The First Bancshares
The merger with The First Bancshares was completed on April 1, and the second quarter numbers reflect a full quarter of operations from both companies. The cultural integration of employees and customers has gone well, and systems conversion is planned for early August.
Positive Financial Growth
Adjusted earnings were approximately $66 million or $0.69 per diluted share. Loans increased by $312 million or 7%, and deposits also increased by $361 million or 7%. The core net interest margin expanded from 3.42% to 3.58%.
Asset Quality Improvement
Improvement was noted in past due loan percentage, and nonperforming loans remained flat. The allowance for credit losses as a percentage of total loans increased by 1 basis point to 1.57%.
Efficiency Ratio Improvement
The adjusted efficiency ratio improved by about 7 percentage points due to improved net revenue and cost containment efforts.
Noninterest Income Growth
Noninterest income increased to $48.3 million in the second quarter, a linked quarter increase of $11.9 million. The mortgage division contributed significantly with an increase in income of $1.6 million.
Negative Updates
Elevated Charge-offs
Net charge-offs were $12.1 million, largely comprised of two credits. These were identified as problem loans and removed from the balance sheet.
Merger-related Expenses
Noninterest expense was $183.2 million for the second quarter, with $20.5 million attributed to merger and conversion expenses. Additional conversion-related expenses are expected in the third quarter.
Company Guidance
During the Renasant Corporation's second-quarter earnings call for fiscal year 2025, the company highlighted several key financial metrics and strategic developments following its merger with The First Bancshares. The merger, completed on April 1, significantly impacted the quarter's results with assets acquired valued at $7.9 billion and liabilities assumed at $6.9 billion. Renasant reported adjusted earnings of approximately $66 million or $0.69 per diluted share, marking a strong performance aided by a 7% increase in both loans and deposits. The core net interest margin expanded from 3.42% to 3.58%, while the reported margin, reflecting purchase accounting adjustments, rose from 3.45% to 3.85%. Additionally, the adjusted total cost of deposits decreased by 18 basis points to 2.04%. The company remains focused on achieving modeled synergies by year-end, and despite some elevated charge-offs, asset quality metrics showed improvement in past-due loan percentages. Renasant is well-positioned for continued growth, leveraging the merger's benefits and exploring further opportunities in fee income and lending.

Renasant Financial Statement Overview

Summary
Renasant's strong revenue growth and improved net profit margins indicate robust financial health, despite limitations in operational margin data and a decline in operating cash flow.
Income Statement
75
Positive
Renasant exhibits strong revenue growth, particularly from 2023 to 2024, with a revenue increase of about 40%. The net profit margin improved significantly from 22.9% in 2023 to 22% in 2024, indicating enhanced profitability. However, EBIT and EBITDA margins were not available for 2024, which slightly limits the comprehensive assessment of operational efficiency.
Balance Sheet
70
Positive
The balance sheet reveals a healthy equity ratio of 14.9% in 2024, suggesting a solid capital position. The debt-to-equity ratio improved from 0.32 in 2023 to 0.20 in 2024, demonstrating effective debt management. Despite these strengths, there is a slight decline in cash reserves, which could be a potential risk if not managed carefully.
Cash Flow
68
Positive
The company's cash flow analysis shows a decline in operating cash flow from 2023 to 2024. However, the free cash flow remained steady, indicating efficient capital expenditure management. The operating cash flow to net income ratio was relatively low at 0.66, suggesting potential room for improvement in cash generation relative to earnings.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue662.45M797.32M696.54M695.67M731.62M
Gross Profit653.18M616.19M606.68M650.99M573.44M
EBITDA277.25M212.42M254.05M270.18M138.12M
Net Income195.46M144.68M166.07M175.89M83.65M
Balance Sheet
Total Assets18.03B17.36B16.99B16.81B14.93B
Cash, Cash Equivalents and Short-Term Investments1.03B1.13B1.73B4.26B1.98B
Total Debt530.61M729.40M1.13B471.21M474.97M
Total Liabilities15.36B15.06B14.85B14.60B12.80B
Stockholders Equity2.68B2.30B2.14B2.21B2.13B
Cash Flow
Free Cash Flow115.78M126.92M559.21M122.14M53.97M
Operating Cash Flow129.43M148.55M574.04M142.66M82.24M
Investing Cash Flow-298.04M-55.40M-2.04B-660.00M-1.27B
Financing Cash Flow459.30M132.21M167.64M1.76B1.40B

Renasant Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price38.03
Price Trends
50DMA
36.18
Positive
100DMA
34.23
Positive
200DMA
34.85
Positive
Market Momentum
MACD
0.69
Positive
RSI
48.37
Neutral
STOCH
34.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNST, the sentiment is Neutral. The current price of 38.03 is above the 20-day moving average (MA) of 37.72, above the 50-day MA of 36.18, and above the 200-day MA of 34.85, indicating a neutral trend. The MACD of 0.69 indicates Positive momentum. The RSI at 48.37 is Neutral, neither overbought nor oversold. The STOCH value of 34.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RNST.

Renasant Risk Analysis

Renasant disclosed 40 risk factors in its most recent earnings report. Renasant reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Renasant Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$3.21B13.899.11%4.08%-0.36%5.97%
78
Outperform
$3.45B11.3518.38%3.95%3.10%3.14%
77
Outperform
$3.61B11.865.21%2.31%21.71%-3.27%
76
Outperform
$3.30B13.0710.25%1.07%5.06%-0.30%
75
Outperform
$3.52B11.3210.08%4.57%17.62%1.89%
71
Outperform
$3.80B14.817.64%3.07%6.73%37.84%
64
Neutral
$6.66B10.197.22%202.42%24.10%5.12%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RNST
Renasant
37.00
1.51
4.25%
FBP
First Bancorp Puerto Rico
21.29
0.21
1.00%
FULT
Fulton Financial
19.26
0.25
1.32%
UCB
United Community Banks
31.93
1.75
5.80%
WSFS
Wsfs Financial
58.16
1.72
3.05%
FHB
First Hawaiian
25.52
1.41
5.85%

Renasant Corporate Events

M&A TransactionsFinancial Disclosures
Renasant Reports Q2 2025 Earnings Post-Merger Completion
Neutral
Jul 22, 2025

On July 22, 2025, Renasant Corporation announced its earnings for the second quarter of 2025, highlighting the completion of its merger with The First Bancshares, Inc. on April 1, 2025. The merger significantly impacted Renasant’s financials, with net income reported at $1.0 million, including substantial merger-related expenses and acquisition provisions. The merger contributed to increased net interest income and noninterest income, as well as organic growth in loans and deposits. Despite a decrease in book value per share due to the merger, the company reported progress in integrating the acquired operations and achieving cost savings.

The most recent analyst rating on (RNST) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Renasant stock, see the RNST Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Renasant Highlights Q1 2025 Financial Performance
Neutral
May 13, 2025

Renasant Corporation announced its participation in investor conferences in the first quarter of 2025, highlighting its financial performance and strategic initiatives. The company reported a net income of $41.5 million and noted increases in loans and deposits, while also addressing potential risks and uncertainties related to its operations and market conditions.

The most recent analyst rating on (RNST) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Renasant stock, see the RNST Stock Forecast page.

Executive/Board Changes
Renasant Announces New CEO and Leadership Transition
Positive
May 1, 2025

On May 1, 2025, Renasant Corporation announced a leadership transition as part of its long-term succession plan. Kevin D. Chapman has taken over as Chief Executive Officer and President of both Renasant Corporation and Renasant Bank, succeeding C. Mitchell Waycaster, who will continue as Executive Vice Chairman. This change is expected to guide Renasant towards future success, leveraging Chapman’s extensive experience in the financial services industry.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025