Renasant | 10-Q: FY2026 Q1 Revenue: USD 388.39 M

Revenue: As of FY2026 Q1, the actual value is USD 388.39 M.

EPS: As of FY2026 Q1, the actual value is USD 0.94, beating the estimate of USD 0.8383.

EBIT: As of FY2026 Q1, the actual value is USD -113.14 M.

Segment Revenue

• Wealth Management Revenue: Increased to $8,678 thousand for the three months ended March 31, 2026, from $7,067 thousand for the same period in 2025.

Operational Metrics

• Net Interest Income: Grew to $223,559 thousand in Q1 2026, up from $134,197 thousand in Q1 2025.
• Provision for Credit Losses: Increased to $8,080 thousand in Q1 2026, compared to $4,750 thousand in Q1 2025.
• Net Interest Income after Provision for Credit Losses: Rose to $215,479 thousand in Q1 2026, from $129,447 thousand in Q1 2025.
• Total Noninterest Income: Increased to $50,272 thousand in Q1 2026, from $36,395 thousand in Q1 2025.
  • Service Charges on Deposit Accounts: Increased to $14,740 thousand in Q1 2026 from $10,364 thousand in Q1 2025.
  • Fees and Commissions: Increased to $4,654 thousand in Q1 2026 from $3,787 thousand in Q1 2025.
  • Mortgage Banking Income: Increased to $9,435 thousand in Q1 2026 from $8,147 thousand in Q1 2025.
  • BOLI Income: Increased to $3,689 thousand in Q1 2026 from $2,929 thousand in Q1 2025.
  • Other Noninterest Income: Increased to $9,076 thousand in Q1 2026 from $4,101 thousand in Q1 2025.
• Total Noninterest Expense: Rose to $155,328 thousand in Q1 2026, from $113,876 thousand in Q1 2025.
  • Salaries and Employee Benefits: Increased to $91,749 thousand in Q1 2026 from $71,957 thousand in Q1 2025.
  • Data Processing: Increased to $5,221 thousand in Q1 2026 from $4,089 thousand in Q1 2025.
  • Net Occupancy and Equipment: Increased to $18,031 thousand in Q1 2026 from $11,754 thousand in Q1 2025.
  • Other Real Estate Owned Expense: Increased to $1,399 thousand in Q1 2026 from $685 thousand in Q1 2025.
  • Professional Fees: Increased to $4,402 thousand in Q1 2026 from $2,884 thousand in Q1 2025.
  • Advertising and Public Relations: Increased to $4,599 thousand in Q1 2026 from $4,297 thousand in Q1 2025.
  • Intangible Amortization: Increased significantly to $8,220 thousand in Q1 2026 from $1,080 thousand in Q1 2025.
  • Communications: Increased to $4,009 thousand in Q1 2026 from $2,033 thousand in Q1 2025.
  • Merger and Conversion Related Expenses: Decreased to $0 in Q1 2026 from $791 thousand in Q1 2025.
  • Other Noninterest Expense: Increased to $17,698 thousand in Q1 2026 from $14,306 thousand in Q1 2025.
• Net Income: Increased to $88,228 thousand in Q1 2026, from $41,518 thousand in Q1 2025.

Cash Flow

• Net Cash Provided by Operating Activities: Increased to $100,055 thousand in Q1 2026, from $50,098 thousand in Q1 2025.
• Net Cash Used in Investing Activities: Remained relatively stable at - $232,856 thousand in Q1 2026, compared to - $236,001 thousand in Q1 2025.
• Net Cash Provided by Financing Activities: Increased to $279,063 thousand in Q1 2026, from $185,210 thousand in Q1 2025.

Unique Metrics & Strategic Summary

• Acquisition of The First Bancshares, Inc.: Renasant Corporation completed the acquisition of The First Bancshares, Inc. for approximately $1,052,690 thousand on April 1, 2025. This acquisition included $419,023 thousand in goodwill, primarily assigned to the Community Banks operating segment, and $165,476 thousand in core deposit intangible assets.
• Loan Portfolio: Loans held for investment, net of unearned income, slightly decreased to $18,975,248 thousand as of March 31, 2026, from $19,047,039 thousand as of December 31, 2025. The allowance for credit losses on loans increased to $295,862 thousand from $293,955 thousand over the same period.
• Deposits: Total deposits increased to $22,099,484 thousand as of March 31, 2026, from $21,473,070 thousand as of December 31, 2025.
• Securities Available for Sale: Fair value increased to $2,809,647 thousand as of March 31, 2026, from $2,560,818 thousand as of December 31, 2025, with unrealized losses of - $106,104 thousand (March 31, 2026) vs - $96,559 thousand (December 31, 2025). Renasant Corporation does not intend to sell securities in an unrealized loss position, and these losses are not considered credit-related.
• Loan Modifications: For Q1 2026, loans modified due to financial difficulty totaled $13,688 thousand, representing 0.07% of total loans, compared to $2,163 thousand (0.02% of total loans) in Q1 2025. Modifications involved interest rate reductions, term extensions, and payment delays across various loan types.

Future Outlook and Strategy

Renasant Corporation is evaluating the impact of new accounting standards, ASU 2025-08 and ASU 2025-09, on its consolidated financial statements; ASU 2025-08 may affect the allowance for credit losses and net interest income, while ASU 2025-09 is not expected to materially impact financial position or operations but may alter the timing and presentation of hedging gains and losses. The goodwill from The First acquisition is primarily attributed to revenue enhancements and operational synergies, indicating a focus on market expansion and efficiency within the Community Banks segment.