Renasant Loan Growth Accelerates After a Slower Second Quarter

The Tip Desk · November 8, 2026 · 3 min read

Net interest income on a fully tax-equivalent basis was $228.6 million as loans rose $555.9 million, an 11.5% annualized increase.

Renasant Corporation (RNST), the Southeast regional bank with about $27.5 billion in assets, reported net income of $78.9 million, or $0.86 a share, for the third quarter of 2026, down from $87.1 million, or $0.94 a share, in the second quarter.

The profit decline tracked a higher credit-loss provision and a $1.9 million drop in mortgage banking income. Fully tax-equivalent net interest income was $228.6 million, reversing a $0.8 million linked-quarter decline in the second quarter.

Loans were the operating inflection. Ending loans rose $555.9 million from June 30, an 11.5% annualized net increase, versus a $220.9 million, or 4.7% annualized, increase in the second quarter. The company said the move reflected strong production and lower payoff activity.

The faster loan build did not lift the margin. Fully tax-equivalent net interest margin compressed 6 basis points to 3.77%, after a 4 bps compression to 3.83% in the second quarter. Adjusted net interest margin was 3.58%. Cost of total deposits was 1.97%.

Deposits at September 30 decreased $73.2 million, a much smaller decline than the $398.4 million linked-quarter drop in the second quarter. Public-fund outflows of $214.7 million were partially offset by consumer and commercial growth. Noninterest-bearing deposits were 23.1% of the total. Short-term borrowings increased $491.3 million.

Mortgage banking income fell $1.9 million to $7.3 million as interest-rate-lock volume dropped $91.0 million to $520.6 million. The company attributed the decline to rising mortgage rates, lower new-loan production and market-value adjustments on pending sales. Gain-on-sale margin rose 18 bps to 1.75%.

Noninterest expense decreased $1.2 million to $160.3 million, reversing a $6.2 million linked-quarter increase in the second quarter. The company cited lower deferred compensation tied to market valuations and higher deferred loan costs from loan growth, partly offset by higher health-insurance claims.

The provision for credit losses on loans rose $8.9 million to $10.1 million, and the provision for unfunded commitments rose $0.6 million to $3.2 million, primarily on growth in loans and commitments. Net loan charge-offs were $10.0 million, or 0.20% annualized, of which 16 bps came from a single credit.

Credit quality still improved on a ratio basis. The allowance for credit losses on loans to total loans was 1.50%, down 4 bps. Coverage of nonperforming loans rose to 168.75% from 158.73%. Nonperforming loans to total loans decreased to 0.89% from 0.97%; criticized loans to total loans decreased to 2.50% from 2.66%.

The company repurchased $42.6 million of common stock at a weighted average of $41.05 a share. Effective October 27, the board approved a $175.0 million repurchase program through the earlier of October 2027 or full use, replacing the prior $250.0 million authorization. Preliminary CET1 was 10.92%.

President and Chief Executive Officer Kevin D. Chapman said third-quarter results reflected strong loan growth with a record level of loan production, continued momentum in core deposit growth and a stable core net interest margin, and that the team is well-positioned to build on year-to-date success.