Latest news with #Renasant
Yahoo
6 days ago
- Business
- Yahoo
RNST Q2 Deep Dive: Merger Integration Drives Revenue Growth, Profitability Lags Expectations
Regional banking company Renasant (NYSE:RNST) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 63.1% year on year to $267.2 million. Its non-GAAP profit of $0.69 per share was 5.7% below analysts' consensus estimates. Is now the time to buy RNST? Find out in our full research report (it's free). Renasant (RNST) Q2 CY2025 Highlights: Revenue: $267.2 million vs analyst estimates of $260.5 million (63.1% year-on-year growth, 2.6% beat) Adjusted EPS: $0.69 vs analyst expectations of $0.73 (5.7% miss) Adjusted Operating Income: $27 million vs analyst estimates of $98.82 million (10.1% margin, 72.7% miss) Market Capitalization: $3.46 billion StockStory's Take Renasant's second quarter results reflected the company's first full period since closing its merger with The First Bancshares, a major development that drove strong top-line growth but left profitability below Wall Street's expectations. Management attributed the significant revenue increase to the combined operations and emphasized progress in integrating teams and customer bases. However, elevated merger-related expenses, integration costs, and some one-time credit charges weighed on margins, which contributed to a negative market reaction. CEO Kevin Chapman noted, 'Our earnings trajectory and balance sheet strength are evident in the second quarter results,' but the company acknowledged that much of the merger's anticipated cost savings have yet to be realized. Looking ahead, Renasant's outlook is tied to the successful systems conversion in early August and realizing the expected cost synergies from the merger. Management remains focused on integrating treasury management offerings, expanding mortgage lending in growth markets, and supporting organic loan and deposit growth. CFO James Mabry described upcoming quarters as a transition period, stating, 'You'll see some efficiencies show up in the expense line [in Q3], and then a little bit more in Q4.' The company believes it is on track to achieve its targeted efficiency and profitability metrics, but further integration progress and disciplined cost control will be crucial for meeting long-term goals. Key Insights from Management's Remarks Management attributed the quarter's revenue momentum to the completed merger with The First Bancshares, while profitability was pressured by integration costs and one-time charges. Merger-driven revenue growth: The full-quarter impact of The First Bancshares merger was the main driver of higher revenues, with both loan and deposit balances growing 7% since the transaction closed. Management highlighted the combined company's expanded footprint in attractive Southeastern markets as a foundation for future growth. Integration expenses weighed on margins: Noninterest expenses were elevated due to $20.5 million in merger and systems conversion costs, which management said will persist into the next quarter. These costs offset much of the underlying operating leverage from the business combination. Loan credit quality stable: While Renasant reported some uptick in classified loans, management attributed this to adding The First's portfolio and described recent charge-offs as isolated, non-systemic events within the commercial loan book. The company's allowance for loan losses was maintained near prior levels. Net interest margin improved: The core net interest margin expanded from 3.42% to 3.58%, partly due to purchase accounting adjustments and a more favorable loan mix post-merger. CFO James Mabry indicated that modest further expansion is possible in the near term. Noninterest income opportunities emerging: Growth in mortgage banking income and progress in rolling out treasury management solutions to The First's customer base were cited as early signs of cross-selling potential. Management is optimistic that these areas, along with capital markets initiatives, will contribute more meaningfully after full integration. Drivers of Future Performance Renasant's near-term outlook centers on capturing merger synergies, controlling costs, and leveraging new fee income streams while managing integration risks. Cost synergies and efficiency gains: The company expects merger-related cost savings to begin materializing in the third quarter, with the full benefit reflected by early next year. Management reiterated its targets for improved efficiency and profitability, emphasizing that most cost reductions are still ahead. Organic growth in key markets: Renasant is targeting mid-single-digit annual growth in loans and deposits, supported by strong pipelines and its expanded presence in the Southeast. Management believes continued migration into these markets will support demand for mortgage and commercial lending. Fee income expansion: The rollout of treasury management, mortgage, and capital markets products to The First's customer base is expected to drive incremental noninterest income, though management cautioned that these benefits may accumulate gradually as integration is completed. Catalysts in Upcoming Quarters In future quarters, the StockStory team will be monitoring (1) the pace and effectiveness of cost savings from merger integration, (2) progress in expanding fee-based income streams such as treasury management and mortgage, and (3) the stability of loan credit quality as the combined loan book matures. Execution on systems conversion and realizing targeted efficiency ratios will be important indicators of management's success. Renasant currently trades at $36.40, down from $38.10 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). Now Could Be The Perfect Time To Invest In These Stocks When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
21-07-2025
- Business
- Yahoo
Renasant (RNST) Q2 Earnings Report Preview: What To Look For
Regional banking company Renasant (NYSE:RNST) will be reporting earnings this Tuesday afternoon. Here's what investors should know. Renasant beat analysts' revenue expectations by 1.9% last quarter, reporting revenues of $170.6 million, up 4.2% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts' tangible book value per share estimates but net interest income in line with analysts' estimates. Is Renasant a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Renasant's revenue to grow 56.6% year on year to $260.5 million, a reversal from the 3.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Renasant has missed Wall Street's revenue estimates twice over the last two years. Looking at Renasant's peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Capital Bank delivered year-on-year revenue growth of 15.2%, beating analysts' expectations by 2.7%, and Nicolet Bankshares reported revenues up 12.7%, topping estimates by 4.4%. Texas Capital Bank traded up 4.8% following the results while Nicolet Bankshares was also up 7.8%. Read our full analysis of Texas Capital Bank's results here and Nicolet Bankshares's results here. There has been positive sentiment among investors in the regional banks segment, with share prices up 7.7% on average over the last month. Renasant is up 9.4% during the same time and is heading into earnings with an average analyst price target of $40.33 (compared to the current share price of $38.80). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
18-07-2025
- Business
- Yahoo
3 Volatile Stocks with Warning Signs
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy. At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here are three volatile stocks to steer clear of and a few better alternatives. Expedia (EXPE) Rolling One-Year Beta: 1.42 Originally founded as a part of Microsoft, Expedia (NASDAQ:EXPE) is one of the world's leading online travel agencies. Why Does EXPE Give Us Pause? Decision to emphasize platform growth over monetization has contributed to 1.8% annual declines in its average revenue per booking Excessive marketing spend signals little organic demand and traction for its platform Free cash flow margin dropped by 23.4 percentage points over the last few years, implying the company became more capital intensive as competition picked up Expedia is trading at $183 per share, or 7.4x forward EV/EBITDA. Check out our free in-depth research report to learn more about why EXPE doesn't pass our bar. Renasant (RNST) Rolling One-Year Beta: 1.05 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. Why Does RNST Worry Us? Sales were flat over the last two years, indicating it's failed to expand this cycle Annual net interest income growth of 5% over the last four years was below our standards for the bank sector Projected tangible book value per share decline of 9.9% for the next 12 months points to tough credit quality challenges ahead Renasant's stock price of $39.07 implies a valuation ratio of 1x forward P/B. If you're considering RNST for your portfolio, see our FREE research report to learn more. Glacier Bancorp (GBCI) Rolling One-Year Beta: 1.10 Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE:GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states. Why Is GBCI Not Exciting? Customers postponed purchases of its products and services this cycle as its revenue declined by 2.5% annually over the last two years Muted 4% annual net interest income growth over the last four years shows its demand lagged behind its bank peers Sales were less profitable over the last two years as its earnings per share fell by 16.5% annually, worse than its revenue declines At $45.79 per share, Glacier Bancorp trades at 1.5x forward P/B. Read our free research report to see why you should think twice about including GBCI in your portfolio, it's free. Stocks We Like More When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Wire
10-07-2025
- Business
- Business Wire
Renasant Bio Launches to Pioneer Next-Generation Disease-Modifying Small Molecule Treatments for ADPKD
BERKELEY, Calif.--(BUSINESS WIRE)--Renasant Bio (Renasant), announced its launch today to advance next-generation disease-modifying treatments for autosomal dominant polycystic kidney disease (ADPKD), the leading genetic cause of end-stage renal failure. Renasant is developing a pipeline of oral small molecule corrector and first-in-class potentiator therapies that directly target the underlying biology of ADPKD, with the goal of restoring the function of key polycystin proteins across multiple different mutations to halt disease progression. Renasant has raised $54.5 million in seed funding, co-led by founding investor 5AM Ventures, alongside other leading life sciences investors including Atlas Venture, OrbiMed and Qiming Ventures. The seed financing will support further progression of Renasant's lead corrector program and ongoing discovery efforts for the company's first-in-class potentiator program. 'ADPKD is a devastating genetic disorder that affects more than 12 million people globally and still lacks truly disease-modifying therapies,' said Emily Conley, Ph.D., chief executive officer of Renasant. 'Our platform of differentiated correctors and first-in-class potentiator therapies are designed to directly address the underlying cause of ADPKD across its broad mutation spectrum, offering the potential to benefit the vast majority of patients.' Next-Generation Corrector and Potentiator Programs for ADPKD Autosomal Dominant Polycystic Kidney Disease (ADPKD) Autosomal dominant polycystic kidney disease is a chronic, progressive genetic condition marked by the progressive formation of fluid-filled cysts in the kidneys, often leading to end-stage renal failure. The condition arises from mutations in the PKD1 and PKD2 genes, which encode polycystin proteins PC1 and PC2—critical regulators of kidney cell function. The genetic mutations underlying ADPKD are extremely heterogeneous, with no single mutation found in more than 2% of patients. Disease-modifying strategies that correct or potentiate polycystin biology must overcome this diversity—making therapies that work broadly across mutations a key treatment advancement for ADPKD. Current therapies do not directly address the underlying protein dysfunction and are limited in their applicability and tolerability. Addressing the Underlying Biological Drivers of ADPKD Renasant's therapeutic strategy is centered on restoring the normal function of PC1 and PC2. Through its leading expertise in ADPKD biology, including electrophysiology and polycystin channel physiology, Renasant has developed proprietary assays to assess protein trafficking and other key mechanisms, enabling precision-guided development of novel therapies for ADPKD. The company's lead program is a small molecule corrector designed to work across a wide range of disease-causing mutations to stabilize and properly fold PC1/2, promoting protein trafficking to restore kidney function. The program is currently progressing through preclinical development. In addition, Renasant is advancing discovery efforts toward a potentiator to enhance ion flux through the polycystin channel and support anti-cystogenic signaling—a first-in-class approach in ADPKD. Correctors and potentiators can act as stand-alone therapies, or they can be combined for synergistic effect. 'Our corrector program is designed to work across a broad range of mutations, and our potentiator represents a novel mechanism of action in ADPKD,' said Gus Gustafson, Ph.D., chief scientific officer. 'These programs hold the potential to reshape the treatment landscape. We are very encouraged by our preclinical data and committed to rapidly advancing these programs for patients in urgent need.' Team of Leading Experts in ADPKD Renasant is led by a world-class team with deep expertise in ADPKD biology and a proven track record in building biopharma companies. The team includes researchers who have shaped the field of polycystin biology and electrophysiology, seasoned drug developers, and biotech executives experienced in advancing cutting-edge scientific approaches. '5AM Ventures founded Renasant around a bold idea: that we could change the trajectory of ADPKD,' said Deborah Palestrant, Ph.D., partner at 5AM Ventures. 'ADPKD is one of the most complex diseases in renal medicine, but Renasant has assembled the right team, with years of research experience in polycystic disease that has informed the right scientific approach. We're proud to have supported the company from the start and are energized by its progress and commitment to delivering truly disease-modifying treatments for ADPKD patients.' Renasant's executive team includes: Emily Conley, Ph.D., chief executive officer Gus Gustafson, Ph.D., chief scientific officer B. Barry Touré, Ph.D., senior vice president, drug discovery Rachel Gallagher, Ph.D., vice president, biology Michelle Ho Huey, Ph.D., vice president, strategy & operations Renasant's board of directors includes: Natalie Holles, chair of the board Kevin Bitterman, Ph.D., partner, Atlas Venture Evan Caplan, M.D., principal, OrbiMed Emily Conley, Ph.D., chief executive officer Anna French, D. Phil, managing partner, Qiming Venture Partners USA Charlotte McKee, M.D., chief medical officer, Sionna Therapeutics Deborah Palestrant, Ph.D., partner, 5AM Ventures In addition, Renasant has assembled a scientific advisory board consisting of preeminent leaders in ADPKD genetics, biology, and both preclinical and clinical drug development. About Renasant Bio Renasant Bio is a biopharmaceutical company pioneering disease-modifying oral small molecule treatments for autosomal dominant polycystic kidney disease (ADPKD), the leading genetic cause of end-stage renal failure. Renasant is advancing a pipeline of oral small molecule corrector and potentiator programs that target the underlying biology of ADPKD to restore the function of key proteins to halt disease progression. Renasant was founded by and incubated within the 4:59 Initiative, the company creation engine of 5AM Ventures, and is based in Berkeley, California. For more information, please visit us at and follow us on LinkedIn and X.
Yahoo
24-06-2025
- Business
- Yahoo
RNST Q1 Deep Dive: Loan and Deposit Growth, Integration Focus After Merger
Regional banking company Renasant (NYSE:RNST) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 4.2% year on year to $170.6 million. Its non-GAAP profit of $0.66 per share was 8.5% above analysts' consensus estimates. Is now the time to buy RNST? Find out in our full research report (it's free). Revenue: $170.6 million vs analyst estimates of $167.4 million (4.2% year-on-year growth, 1.9% beat) Adjusted EPS: $0.66 vs analyst estimates of $0.61 (8.5% beat) Market Capitalization: $3.28 billion Renasant's first quarter was marked by stronger-than-expected revenue and non-GAAP profit, with the market responding positively to the company's solid start to the year. Management highlighted loan and deposit growth as primary factors supporting net interest income, while disciplined deposit pricing and improved funding mix reduced overall funding costs. CEO Mitchell Waycaster credited 'solid profitability and growth in loans and deposits' as key themes, while non-interest income also benefited from seasonal strength in mortgage banking. Looking forward, management's outlook centers on capturing efficiencies from the recent First Bancshares merger and maintaining disciplined expense control as integration progresses. Executives emphasized plans to realize cost savings after the technology conversion later this year, with CFO James Mabry stating, 'Our goal is to have a very clean Q1 of 2026.' The company also sees opportunities for balance sheet optimization and capital flexibility, though they remain cautious about ongoing economic uncertainties and their potential impact on loan demand and credit quality. Management attributed the quarter's balanced performance to steady loan demand, improved deposit mix, and early progress on merger integration, while noting continued vigilance around economic headwinds and funding costs. Loan and deposit momentum: Renasant reported strong linked-quarter growth in both loans and deposits, with noninterest-bearing deposits accounting for a significant share of new funding. This shift in deposit mix helped reduce the overall cost of funds. Merger integration underway: The acquisition of First Bancshares closed in early April, and integration efforts began immediately. Management cited early success aligning teams and systems, with technology conversion set for later in the year. They expect cost efficiencies to emerge in subsequent quarters as integration milestones are reached. Stable credit quality: Asset quality metrics improved across the board, reflecting proactive credit management and early identification of underperforming loans. Management noted a small credit loss provision tied to growth in construction lending commitments, indicating ongoing vigilance in risk assessment. Mortgage and wealth consistency: Non-interest income grew, primarily due to seasonal improvement in mortgage banking and ongoing strength in wealth management. CEO Mitchell Waycaster described the wealth business as a 'story of consistency,' with integration across business lines supporting future growth potential. Expense discipline maintained: Excluding merger-related costs, non-interest expenses were largely stable. Management reiterated their focus on expense control during the integration process and expect greater clarity on cost synergies after the technology conversion. Management expects revenue trends to be driven by ongoing merger integration, deposit mix optimization, and expense management, with macroeconomic uncertainty and rate volatility posing potential headwinds. Cost savings from merger integration: The successful integration with First Bancshares is expected to generate meaningful operating efficiencies, particularly after the August technology conversion. Management aims to demonstrate clear progress on cost synergies by the end of this year, contributing to non-GAAP margin expansion. Deposit and loan growth outlook: Executives anticipate continued moderate growth in loans and deposits, with the loan pipeline showing strength across commercial, small business, and residential segments. However, they remain attentive to economic uncertainty and expect net loan growth to be in the low single-digit range in the upcoming quarter. Interest rate and credit risk vigilance: Management highlighted ongoing monitoring of rate volatility and customer exposure to tariffs or other economic disruptions. Contingency plans are in place to adjust underwriting standards if macroeconomic risks intensify, supporting asset quality and capital preservation. Looking ahead, our analysts will be watching (1) the realization of merger-related cost efficiencies following the upcoming technology conversion, (2) sustained loan and deposit growth in the face of economic uncertainty, and (3) Renasant's ability to manage funding costs and asset quality amid rate volatility. Any updates on capital deployment, including potential share repurchases or debt refinancing, will also be important signposts for future performance. Renasant currently trades at $35.09, up from $28.66 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
