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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:78Outperform
Price Target:
$42.00
â–²(6.38% Upside)
Renasant's overall stock score is driven by its strong financial performance and positive earnings call, highlighting successful merger integration and financial growth. The technical analysis suggests a neutral market position, while the valuation is fair. The company's strategic positioning and operational efficiency improvements are significant strengths.

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

Renasant Business Overview & Revenue Model

Company DescriptionRenasant Corporation (RNST) is a regional financial services holding company based in Tupelo, Mississippi. It operates through its banking subsidiary, Renasant Bank, which offers a wide range of banking products and services, including personal and business banking, commercial lending, mortgage banking, and wealth management. Renasant primarily serves customers in the southeastern United States, focusing on providing tailored financial solutions to both individuals and businesses.
How the Company Makes MoneyRenasant generates revenue through multiple key streams, primarily through net interest income and non-interest income. Net interest income is earned from the difference between the interest income generated from loans and the interest expense on deposits and other borrowings. The company offers various loan products, including commercial loans, consumer loans, and residential mortgages, which contribute significantly to its interest income. Additionally, Renasant earns non-interest income through fees for services such as asset management, trust services, and transaction fees related to deposit accounts. The bank's strategic partnerships and community-focused approach enhance customer loyalty, driving growth in deposits and loans, which are crucial for its revenue generation. Moreover, Renasant's expansion efforts and acquisitions can also play a significant role in increasing its overall earnings.

Renasant Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive overall sentiment due to successful merger integration, strong financial growth, and improved asset quality. However, the call also noted some challenges, including elevated charge-offs and merger-related expenses.
Q2-2025 Updates
Positive Updates
Merger Success with The First Bancshares
The merger with The First Bancshares was completed on April 1, and the second quarter reflects a full quarter of operations from both companies. The cultural integration of employees and customers has gone well.
Positive Financial Growth
Loans increased by $312 million or 7% and deposits rose by $361 million or 7% from March 31. Core net interest margin expanded from 3.42% to 3.58%.
Improved Asset Quality
Past due loan percentage improved and nonperforming loans remained flat. The capital ratios remain in excess of required minimums.
Noninterest Income Increase
Noninterest income was $48.3 million, a linked quarter increase of $11.9 million, largely attributable to The First and the mortgage division.
Negative Updates
Elevated Charge-offs
Net charge-offs were $12.1 million, largely comprised of two credits which were C&I loans. This was higher than expected and not systemic.
Merger-Related Expenses
Noninterest expense was $183.2 million for the quarter, with $20.5 million attributed to merger and conversion expenses.
Provision for Credit Losses
A credit loss provision on loans was recorded at $14.7 million, impacting the financials due to model adjustments and loan growth.
Company Guidance
During the Renasant Corporation 2025 Second Quarter Earnings Conference Call, the company provided several key financial metrics reflecting their merger with The First Bancshares. For the second quarter, reported earnings were $1 million or $0.01 per diluted share, while adjusted earnings reached approximately $66 million or $0.69 per diluted share. Loans increased by $312 million or 7% from March 31, and deposits similarly rose by $361 million or 7%. The core net interest margin expanded from 3.42% to 3.58%, while the reported margin, including purchase accounting adjustments, grew from 3.45% to 3.85%. Additionally, the adjusted total cost of deposits decreased by 18 basis points to 2.04%, and adjusted loan yields decreased by 1 basis point to 6.18%. The fair value of assets acquired in the merger was $7.9 billion, with liabilities assumed totaling $6.9 billion. Core deposit intangibles were valued at $159.6 million, and preliminary goodwill from the transaction amounted to $428.7 million. The adjusted pre-provision net revenue stood at $103 million, with noninterest income at $48.3 million, marking an $11.9 million increase from the previous quarter. Noninterest expenses, excluding merger-related costs, were $162.7 million. The company expects further conversion-related expenses in the third quarter as they continue to integrate systems and achieve modeled synergies by year-end.

Renasant Financial Statement Overview

Summary
Renasant exhibits solid financial health with strong revenue growth, efficient operations, and robust cash flow management. While leverage has increased, the company maintains a strong equity position. Overall, Renasant is well-positioned within its industry, with a strong trajectory for future growth.
Income Statement
85
Very Positive
Renasant has demonstrated strong and consistent revenue growth, with a notable increase in total revenue from 2020 to TTM (Trailing-Twelve-Months) 2025. The gross profit margin remains robust, though slightly declining from earlier years. Net profit and EBIT margins show stability, reflecting efficient operational management. The consistent growth in EBIT and EBITDA margins highlights improved operational efficiency.
Balance Sheet
78
Positive
The balance sheet shows a healthy equity ratio and a manageable debt-to-equity ratio, indicating financial stability. Stockholders' equity has grown consistently, supporting a strong ROE. However, the increase in total liabilities suggests potential leverage risk, which should be monitored closely.
Cash Flow
82
Very Positive
Renasant's cash flow statements reveal positive free cash flow growth with a solid operating cash flow to net income ratio, indicating strong cash generation relative to earnings. Free cash flow growth is slightly volatile, yet overall positive trends are evident. The company effectively manages capital expenditures, further strengthening cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.04B1.04B909.77M691.06M695.67M731.62M
Gross Profit656.92M653.18M616.19M606.68M653.15M573.44M
EBITDA280.16M277.25M212.42M254.05M270.18M138.12M
Net Income197.57M195.46M144.68M166.07M175.89M83.65M
Balance Sheet
Total Assets18.27B18.03B17.36B16.99B16.81B14.93B
Cash, Cash Equivalents and Short-Term Investments2.09B1.92B1.72B2.11B4.26B1.98B
Total Debt541.32M538.63M736.98M1.14B485.16M496.31M
Total Liabilities15.54B15.36B15.06B14.85B14.60B12.80B
Stockholders Equity2.73B2.68B2.30B2.14B2.21B2.13B
Cash Flow
Free Cash Flow155.35M115.78M126.92M559.21M122.14M53.97M
Operating Cash Flow170.52M129.43M148.55M574.04M142.66M82.24M
Investing Cash Flow-620.06M-298.04M-55.40M-2.04B-660.00M-1.27B
Financing Cash Flow696.48M459.30M132.21M167.64M1.76B1.40B

Renasant Technical Analysis

Technical Analysis Sentiment
Positive
Last Price39.48
Price Trends
50DMA
37.70
Positive
100DMA
35.64
Positive
200DMA
35.49
Positive
Market Momentum
MACD
0.65
Negative
RSI
60.75
Neutral
STOCH
76.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNST, the sentiment is Positive. The current price of 39.48 is above the 20-day moving average (MA) of 38.22, above the 50-day MA of 37.70, and above the 200-day MA of 35.49, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 60.75 is Neutral, neither overbought nor oversold. The STOCH value of 76.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$3.54B11.7418.38%3.17%3.10%3.14%
78
Outperform
$3.75B15.585.21%2.23%21.87%-3.27%
76
Outperform
$4.04B15.117.81%2.88%3.00%42.78%
75
Outperform
$3.26B12.7710.32%1.10%0.30%1.46%
74
Outperform
$3.53B11.3610.08%3.66%17.61%1.89%
72
Outperform
$3.21B13.299.40%4.04%-2.56%12.05%
68
Neutral
$17.81B11.8710.24%3.74%9.75%1.30%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RNST
Renasant
39.48
7.74
24.39%
FBP
First Bancorp Puerto Rico
22.06
2.29
11.58%
FULT
Fulton Financial
19.38
2.32
13.60%
UCB
United Community Banks
33.28
5.42
19.45%
WSFS
Wsfs Financial
58.29
7.80
15.45%
FHB
First Hawaiian
25.73
3.40
15.23%

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.

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: Aug 13, 2025