Renasant Corporation Q1 FY2026 earnings call

Two years ago, Renasant set aspirational goals to improve financial performance and 2026 was a key measuring stick. First quarter results exceeded goals with adjusted earnings per share $0.93, 41% year - over - year increase; adjusted return on assets grew from 95 basis points in 2025 to 133 basis points in 2026; adjusted return on tangible equity grew from 10.3% to 16.3%; efficiency ratio improved from 65.5% to 55.7%. Team is customer - centric through largest merger, conversion, and integration. Moving forward, team is engaged on growing customer relationships and hiring talented bankers. Balance sheet: loans down, deposits up; income statement: adjusted pre - provision net revenue, net interest income, noninterest income and expense details.

Loans were down $71.8 million on a linked - quarter basis, or 1.5% annualized. Deposits were up $626.4 million from the fourth quarter, or 11.8% annualized. Reported net interest margin decreased 2 basis points to 3.87%, while adjusted margin decreased 1 basis point to 3.61% on a linked - quarter basis. Our adjusted total cost of deposits decreased 3 basis points to 1.94%, while our adjusted loan yields decreased 7 basis points to 6.04%. We recorded a credit loss provision on loans of $8.1 million. Net charge - offs were $2.3 million, and the ACL as a percentage of total loans increased 2 basis points quarter over quarter to 1.56%. Adjusted pre - provision net revenue was $118.3 million. Net interest income decreased $3.8 million quarter over quarter. Noninterest income was $50.3 million in the first quarter, a linked - quarter decrease of $0.9 million. Noninterest expense was $155.3 million for the first quarter, a linked - quarter decrease of $4.9 million excluding merger and conversion expenses.

Reaffirmed mid - single - digit loan growth outlook. Deposit growth expected mid - single - digit, roughly parallel with loan growth. Net interest margin outlook stable in core, even with rate cuts, impact is minimal. CET1 ratio started at roughly 11.25% at the start of the year, desired outcome is to finish roughly in that range at year end with balance sheet growth playing a role.

Many factors could cause actual results to differ from forward - looking statements, including changes in mix and cost of funding sources, interest rate fluctuation, regulatory changes, portfolio performance. Credit quality has macro uncertainty with factors like energy cost increase potentially straining cash flows of consumers or commercial businesses and affecting credit.

Q: Michael Edward Rose asked about merger cost savings, employee headcount reduction and near - term outlook on expenses.

A: Jim and Kevin responded on merger cost saves achieved, employee headcount reduction from around 3400 to about 2950, and expected low single - digit percent increase in expenses in second quarter with factors like merit increases and hiring.

Q: Catherine Mealor asked about deposit growth seasonality, deposit growth relative to loan growth and incremental deposit costs.

A: James C. Mabry said first quarter deposit growth had seasonality with public funds, outlook for deposit growth mid - single - digit, roughly parallel with loan growth, and talked about incremental deposit costs.

Q: Matthew Covington Olney asked about net interest margin outlook absent rate cuts and sensitivity to Fed rate cuts.

A: James C. Mabry said net interest margin guidance unchanged, core NIM stable.

Q: David Jason Bishop asked about hiring niches and buyback aggressiveness.

A: Kevin D. Chapman talked about hiring in certain markets and business lines, James C. Mabry talked about CET1 ratio and buyback plans.

Q: Stephen Kendall Scouten asked about hiring concentration and capital plan.

A: Kevin D. Chapman talked about hiring targeted in certain markets and for bench strength.

Q: Analyst asked about CRE loans and fee income opportunities.

A: David L. Meredith and James C. Mabry talked about CRE loans and fee income outlook.

Q: David Jason Bishop asked about credit trends and ACL.

A: David L. Meredith and Kevin D. Chapman talked about credit trends and ACL in view of macro uncertainty.