| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.78 | -32 |
| Intrinsic value (DCF) | 39.20 | 4 |
| Graham-Dodd Method | 31.35 | -17 |
| Graham Formula | 70.88 | 88 |
Renasant Corporation (NASDAQ: RNST) is a regional bank holding company headquartered in Tupelo, Mississippi, with a rich history dating back to 1904. Operating primarily through its subsidiary Renasant Bank, the company provides a comprehensive suite of financial services, including retail and commercial banking, wealth management, insurance, and fiduciary services. Renasant serves customers across seven Southeastern states—Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee—through a network of 189 banking, lending, and mortgage offices, supported by digital banking solutions. The company operates through three key segments: Community Banks (offering deposit accounts, loans, and treasury services), Insurance (providing commercial and personal insurance products), and Wealth Management (including trust administration, retirement planning, and investment services). Renasant’s regional focus allows it to maintain strong community relationships while benefiting from the economic growth of the Southeast. With a market capitalization of approximately $3.3 billion, Renasant is a mid-sized player in the competitive regional banking sector, emphasizing personalized service and diversified revenue streams.
Renasant Corporation presents a stable investment opportunity within the regional banking sector, supported by its diversified revenue model and strong Southeastern U.S. footprint. The company’s conservative beta (0.878) suggests lower volatility relative to the broader market, appealing to risk-averse investors. Key strengths include a solid net income of $195.5 million (2021) and a consistent dividend payout ($0.88 per share). However, risks include exposure to regional economic fluctuations and competitive pressures from larger national banks. The company’s moderate loan portfolio concentration in commercial real estate and agriculture could pose challenges in a rising interest rate environment. Investors should monitor Renasant’s ability to grow deposits and manage net interest margins amid macroeconomic uncertainty.
Renasant Corporation competes in the crowded regional banking landscape, where differentiation hinges on localized service, digital capabilities, and niche expertise. Its competitive advantage lies in its deep community ties and multi-segment revenue diversification (banking, insurance, wealth management), which mitigates reliance on interest income. The company’s footprint in high-growth Southeastern markets provides opportunities for organic expansion, though it faces stiff competition from both larger regional peers and national banks with superior scale and technology budgets. Renasant’s wealth management segment adds stickiness to customer relationships, but its digital offerings may lag behind tech-forward competitors. The bank’s conservative balance sheet (moderate debt-to-equity ratio) and focus on relationship banking position it well for stability, but it may struggle to compete on pricing or innovation with giants like Bank of America or Truist. Its regional focus allows for tailored underwriting but limits geographic risk diversification.