KBRA Affirms Ratings for Renasant Corporation

KBRA affirms the senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, and the short-term debt rating of K2 for Tupelo, Mississippi-based Renasant Corporation (NYSE: RNST) (“the company”). KBRA also affirms the deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2 for the subsidiary, Renasant Bank. The Outlook for all long-term ratings is Stable.

Key Credit Considerations

The ratings and Outlook are supported by RNST's consistent earnings profile, solid pre-provision profitability, and diversified revenue streams. ROA has improved to ~1.3% as of 1Q26 following the successful integration of The First Bancshares, Inc. ("The First"), which enhanced scale in several attractive Southeastern growth markets across the Gulf Coast and benefited NIM and operating efficiency. KBRA views profitability as sustainable, assuming a core NIM of 3.5%-3.6% (excluding purchase accounting accretion) and continued manageable credit costs. Noninterest income provides above-average earnings diversification, representing ~18% of revenues and including wealth management and a sizable mortgage banking operation.

The ratings also reflect RNST's history of sound asset quality across multiple economic cycles, resulting in average annualized NCO ratios of approximately 0.10% in recent years. The loan portfolio is reasonably diversified by lending segment and geography. The company's principal credit exposure is Investor CRE (42% of loans), including multifamily (7%) and construction (10%), complemented by residential mortgage (25%) and C&I (30%, including OOCRE). KBRA believes risks in the loan book are mitigated by conservative underwriting, granular borrower concentrations, and proactive credit administration. Recent enhancements to risk governance following the integration of The First further reinforce what we view as an already strong credit risk management framework.

The funding profile is a credit strength, underpinned by a granular, relationship-based deposit franchise that spans six Southeastern states, with a top four deposit market share in Mississippi and meaningful presence in Atlanta, Memphis, Nashville, Birmingham, and Baton Rouge MSAs. RNST funds its loan portfolio with core deposits, as evidenced by a loan-to-core-deposit ratio in the low- to mid-90% range. Reliance on wholesale funding sources is minimal, and the company maintains substantial contingent liquidity.

Capital remains appropriate for the rating category. At 1Q26, the company reported TCE and CET1 ratios of 9.1% and 11.2%, respectively, consistent with its historical capital profile. Management expects to accrete approximately 50-80 bps of CET1 annually through retained earnings while maintaining flexibility to support organic growth and opportunistic strategic initiatives. Sustained improvement in core capital ratios, more closely aligned with higher-rated peers, would be viewed favorably by KBRA.

Rating Sensitivities

Meaningfully improved profitability or capitalization, in line with higher-rated peers, could result in positive rating momentum if sustained over time. Conversely, while negative rating action is not currently contemplated, a material deterioration in earnings, asset quality, or capital metrics could pressure the ratings.

To access ratings and relevant documents, click here.

Methodology