Renasant (NYSE:RNST) Posts Q3 Sales In Line With Estimates

Regional banking company Renasant (NYSE:RNST) met Wall Street’s revenue expectations in Q3 CY2025, with sales up 22.4% year on year to $269.5 million. Its non-GAAP profit of $0.77 per share was 1.6% below analysts’ consensus estimates.

Is now the time to buy Renasant? Find out by accessing our full research report, it’s free for active Edge members.

Company Overview

Founded in 1904 during a time when the South was rebuilding its economy, Renasant (NYSE:RNST) is a regional bank holding company that offers banking, wealth management, insurance, and specialized lending services throughout the Southeast.

Sales Growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, Renasant grew its revenue at a decent 6.2% compounded annual growth rate. Its growth was slightly above the average banking company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Renasant’s annualized revenue growth of 15.1% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, Renasant’s year-on-year revenue growth of 22.4% was excellent, and its $269.5 million of revenue was in line with Wall Street’s estimates.

Net interest income made up 74.6% of the company’s total revenue during the last five years, meaning lending operations are Renasant’s largest source of revenue.

Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories.

Tangible Book Value Per Share (TBVPS)

Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.

This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

Renasant’s TBVPS grew at a tepid 3.4% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 4.5% annually over the last two years from $21.76 to $23.77 per share.

Over the next 12 months, Consensus estimates call for Renasant’s TBVPS to grow by 10.7% to $26.32, solid growth rate.

Key Takeaways from Renasant’s Q3 Results

We struggled to find many positives in these results. Although its net interest margin beat, it missed Wall Street’s net interest income, efficiency ratio, and EPS estimates. Overall, this was a softer quarter. The stock traded up 2% to $35.73 immediately after reporting.

Big picture, is Renasant a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.