Renasant (RNST) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $88.2 million, more than double year-over-year, with diluted EPS of $0.94 and adjusted EPS of $0.93, reflecting strong profitability and successful integration of The First Bancshares, Inc.

• Adjusted return on assets rose to 1.33% from 0.94% and return on tangible equity increased to 16.3% from 10.3% year-over-year.

• Efficiency ratio improved to 55.73% from 65.51% year-over-year; adjusted efficiency ratio improved to 52.82% from 64.43%.

• Successfully completed the largest merger, conversion, and integration in company history, maintaining customer focus and achieving significant cost savings.

• Quarterly dividend increased by $0.01 to $0.24 per share, and stock repurchase authorization was expanded.

Financial highlights

• Loans decreased by $71.8 million sequentially (1.5% annualized), while deposits increased by $626.4 million (11.8% annualized), driven by seasonal public fund inflows.

• Net interest margin was 3.87%, down 2 basis points sequentially; adjusted margin was 3.61%.

• Noninterest income was $50.3 million, with mortgage banking income up sequentially and prior quarter's one-time gain impacting comparisons.

• Noninterest expense was $155.3 million, down $15.4 million sequentially, including a $10.6 million reduction in merger expenses.

• Allowance for credit losses on loans increased to 1.56% of total loans, with a provision of $8.1 million and net charge-offs of $2.3 million.

Outlook and guidance

• Reaffirmed mid-single digit growth outlook for both loans and deposits for the year, with net interest margin expected to remain stable.

• Modest increase in expenses expected in Q2 due to merit increases and hiring, with low single-digit percentage growth projected.

• Fee income expected to see modest improvement, with mortgage and wealth management highlighted as growth areas.

• Board approved a $0.24 per share quarterly dividend and increased stock repurchase authorization by $100 million.

• Management expects continued integration benefits from The First acquisition and ongoing focus on core deposit growth.