瑞納森 (RNST) 2026 年第三季法說會：放款成長與 1.4 億美元交易

Renasant Corporation (NYSE: RNST) 在廣泛的放款業務與核心存款成長支持下，公布 2026 年第三季調整後獲利能力較去年同期提升。與放款成長相關的高額撥備導致每股盈餘 (EPS) 季減，同時管理層指出淨利息收益率有溫和上行空間，並詳細說明其收購 Commercial Bank & Trust 的計畫。

重點摘要

• 調整後 EPS 為 0.86 美元，年增 12%。調整後平均資產報酬率 (ROA) 升至 1.16%，調整後平均有形普通股權益報酬率 (ROTCE) 達 14.5%。
• 繼創紀錄的放款投放後，放款總額季增 5.559 億美元，折合年化成長率為 11.5%。管理層維持資產負債表中單位數成長的展望。
• 總存款減少 7,320 萬美元，主要是由於公共基金流出以及退出較大型、成本較高的高非核心客戶關係。零售與商業存款年化成長約 8%。
• 列報的淨利息收益率下降 6 個基點至 3.77%。若扣除第二季加速債券折價攤銷影響，核心淨利息收益率季增 2 個基點。
• Renasant 同意收購 Commercial Bank & Trust，交易價值約 1.4 億美元。管理層預期 EPS 將增長約 4%，每股有形帳面價值稀釋 1.5%，回收期略低於兩年。
• 董事會重新授權 1.75 億美元的股票回購計畫。管理層預估將保持積極，但由於收購案包含現金支付部分，股票回購步調可能會趨緩。

核心財務數據

業務與營運表現

放款成長廣泛分佈於各區域、特種融資、消費金融、小型企業及大型企業管道。管理層將此動能部分歸因於 The First 的整合以及過往的人才投資。Renasant 在第三季新增了 11 名業務收益創造人員，招募重點集中在財富管理、資金與現金管理以及資深銀行家。

本季新放款與展期放款的平均收益率約為 6.19%，9 月更達到 6.35%。本季核心放款收益率為 6.08%，9 月上升至 6.11%。

基礎核心存款年化成長率約為 8%。該成長中近 60% 來自先前在 Renasant 未開立帳戶的客戶。新增核心存款利率落在 2% 中段範圍，管理層表示這比同業批發利率及部分市場競品低了 1 至 1.5 個百分點。

Commercial Bank & Trust 帶來低成本的核心存款基礎，以及超過 10 億美元的財富管理資產規模 (AUM)，主要為信託服務。Renasant 還預期有機會提供更大的放款額度及專利產品，例如資產基礎融資 (ABL)、SBA 服務與應收帳款承購 (factoring)。

管理層指引

管理層維持對資產負債表中單位數成長的預期。管理層強調，絕不會以犧牲放款收益率、核貸標準或信用品質為代價來追求更快的成長。

根據公司預測的利率路徑（包含 12 月升息及 2027 年再升息兩次），管理層認為未來一至兩個季度淨利息收益率將有溫和上行空間。近期預估的計息存款 Beta 值介於 40% 後段至 50% 前段之間，隨後將逐漸移至 50% 中段。

第四季費用預計將輕微上升，主要源於近期的招募。合併相關費用也可能增加波動。管理層預期非利息收入將小幅下滑，主因房貸業務持續受利率及正常第四季季節性因素影響。

Renasant 預估第四季可增值收益 (accretable yield) 約為 1,000 萬美元，其中包括約 150 萬美元的加速攤銷。管理層預期加速部分在 2027 年前會遞減，但具體時程對利率環境及放款償還情況仍具敏感性。

Commercial Bank & Trust 的收購交易預計於 2027 年第一季完成。交易對價約為 75% 股票與 25% 現金，預計交易完成時 CET1 約為 11%。在完全落實基礎上，管理層估計該交易將為 ROTCE 增加約 70 個基點，並分別為淨利息收益率及資產報酬率 (ROA) 增加 5 個基點。預計約有一半的預估費用節省將在 2027 年實現，並於 2028 年實現全部節省。

風險與關注焦點

• 存款競爭依然激烈，各家銀行積極尋求資金，且公共基金存款的成本日益昂貴。
• 存放比已上升至約 90%–91%。管理層不希望該比率顯著高於此水準，並旨在避免依賴聯邦住房貸款銀行 (FHLB) 借款或經紀存款。
• 放款定價依然具競爭性，儘管第三季 5 年期與 10 年期利率走高，利差並未擴大。
• 放款案源管道較第三季初有所放緩，不過管理層仍形容其維持健康狀態，並預期第四季表現良好。
• 房貸業務仍面臨高利率及季節性疲軟的風險。
• 管理層承認 Commercial Bank & Trust 交易存在整合與轉換風險，但預期該交易的規模與地理集中度不會干擾更廣泛的有機成長。

分析師問答亮點

管理層表示，公共基金的季節性因素應在大約年底或 2027 年初從存款阻力轉變為助力。長期目標是減少對這些相對昂貴存款的依賴，並使資金成本更接近同業水準。

資產品質持續改善。關注與分類放款 (criticized and classified loans) 已連續四個季度下降，不良資產則連續兩個季度下降。管理層表示，進一步改善可能會允許備抵率依據其信用模型調降。

本季顯著的呆帳沖銷涉及單筆工商業 (C&I) 授信，該筆授信最早於 2026 年第一季被識別為問題資產。Renasant 已連續數個季度計提重大減損，並在取得最新的資產估值後，將該放款帳面價值沖銷至管理層預估的可實現價值。

管理層將人才招募週期形容為處於「中場階段」(middle innings)。近期的招募預期將鞏固中單位數的成長展望，但公司優先考慮具持續性的收入來源，而非強行推動短期資產負債表擴張。

法說會完整逐字稿

完整財報電話會議逐字稿

管理層陳述

Operator

Good day, and welcome to the Renasant Corporation's 2026 Third Quarter Earnings Conference Call and Webcast. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Kelly Hutcheson. Please go ahead.

Kelly Hutcheson

Good morning, and thank you for joining us for Renasant Corporation's quarterly webcast and conference call. Participating in the call today are members of Renasant's executive management team.

Before we begin, please note that many of our comments during this call will be forward-looking statements, which involve risk and uncertainty. There are many factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements. Such factors include, but are not limited to, changes in the mix and cost of our funding sources, interest rate fluctuation, regulatory changes, portfolio performance, realization of the projected financial metrics from our recently announced merger with Commercial Holding Company and other factors discussed in our recent filings with the Securities and Exchange Commission, including our recently filed earnings release and the press release announcing the proposed merger, both of which have been posted to our corporate site, www.renasant.com at the Press Releases link under the News and Market Data tab.

We undertake no obligation, and we specifically disclaim any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

In addition, some of the financial measures that we may discuss this morning are non-GAAP financial measures. A reconciliation of the non-GAAP measures in our earnings release to the most comparable GAAP measures can be found in such release.

And now I will turn the call over to our President and Chief Executive Officer, Kevin Chapman.

Kevin Chapman

Thank you, Kelly, and good morning. Third quarter results continue to show momentum in achieving our financial goals, adding talent and gaining market share. Adjusted earnings per share in the third quarter were $0.86, up 12% from 1 year ago. Adjusted return on average assets was 1.16% in the quarter compared to 1.09% in the same period last year. Similarly, adjusted return on average tangible common equity was 14.5% versus 14.2% in the third quarter of '25. The efficiency ratio also improved to 57.7% this quarter.

Our core business continues to perform well. Highlights this quarter include strong loan and core deposit growth, a record level of loan production, a stable core net interest margin, a reduction in problem credits, a reduction in expenses and continued buybacks. While EPS declined linked quarter, this was primarily due to a higher provision driven by the ramp in loan growth.

In addition, we are pleased this morning to announce the merger with Commercial Bank & Trust, which will strengthen our presence in Memphis and provide solid, long-tenured deposit and wealth management relationships throughout Western Tennessee. We are looking forward to welcoming Mott Ford and the commercial team to Renasant. And importantly, we do not believe this deal will distract us from the market share opportunities we continue to see across our footprint. Altogether, Renasant is in a great position to continue to improve financial performance and capitalize on growth opportunities and the commercial acquisition will be additive to that momentum.

I will now turn the call over to Jim to provide more details on the financial results.

James Mabry

Thank you, Kevin, and good morning. Looking at the balance sheet, loans were up $555.9 million on a linked-quarter basis or 11.5% annualized. Deposits were down $73.2 million from the second quarter or 1.3% annualized, primarily due to outflows of public fund deposits and a couple of larger noncore higher cost relationships, offset by about 8% annualized growth in consumer and commercial deposits. Reported net interest margin decreased 6 basis points to 3.77%, while adjusted margin was down 2 (sic) [ 3 ] basis points at 3.58%. Excluding the accelerated bond discount accretion last quarter, core net interest margin was up 2 basis points linked quarter.

Our total cost of deposits increased by only 1 basis point to 1.97%, while our adjusted loan yields increased 5 basis points to 6.08%. From a capital standpoint, all regulatory capital ratios remain in excess of required minimums to be considered well capitalized. We recorded a credit loss provision on loans of $13.3 million comprised of $10.1 million for funded loans and $3.2 million for unfunded commitments. Net charge-offs were $10 million and the ACL as a percentage of total loans declined 4 basis points quarter-over-quarter to 1.50%.

Turning to the income statement. Our pre-provision net revenue was $112.6 million. Net interest income was $228.6 million, an increase of $0.9 million quarter-over-quarter. Excluding fair value accretion and the accelerated bond discount accretion last quarter, core net interest income increased $5.8 million linked quarter or 11% annualized.

Noninterest income was $49.3 million in the third quarter, a linked quarter decrease of $1.9 million, which was primarily driven by a decrease in mortgage banking income. Noninterest expense was $160.3 million for the third quarter, a linked quarter decrease of $1.2 million, mostly driven by a decline in deferred compensation accruals. As to the Commercial Bank & Trust transaction, we have provided a supplementary slide deck with details on this transaction. A few highlights. The deal value is approximately $140 million and is comprised of roughly 75% stock and 25% cash.

Slide 4 provides an overview of Commercial's high-quality, low-cost core deposit base. We anticipate the deal to be approximately 4% accretive to EPS and 1.5% dilutive to tangible book value per share with an estimated earn-back of just under 2 years. We expect to see modest diminution to the capital ratios with CET1 being approximately 11% at close. We anticipate the deal to close sometime in the first quarter of 2027.

I will now turn the call back over to Kevin.

Kevin Chapman

Thank you, Jim. We believe that Renasant is in a great position to continue high levels of performance while also taking advantage of opportunities created by industry consolidation. We appreciate your interest in Renasant and look forward to discussing our results with you.

I will now turn the call over to the operator for questions.

Operator

[Operator Instructions] Our first question comes from Stephen Scouten with Piper Sandler.

分析師問答

Stephen Scouten

I guess maybe if I could start on deposits and just kind of thinking about with the strong loan growth you saw, how you think about the ability to fund that growth with deposit growth. I know you talked a lot about new customers coming on board recently. So just how that's developing and what you think can manifest moving forward?

Kevin Chapman

Yes. So yes, look, as we look at deposit growth, and look, if you look at total deposits, there's some noise in there, and we tried to lay out what that noise is, particularly with some of our public funds. But if you look underneath that, core deposits continue to grow at an appreciable rate. I think in Q3, that number was close to a little bit over $300 million. And so the seasonality we see with public funds, you'll start to see that reverse as we get into the end of this year or early next year. So that will stop being a headwind and become a tailwind. But that hasn't distracted us or taken us away from the opportunity of growing core deposits.

And also just on that public funds and maybe a little bit of insight is what the market is providing us with an opportunity is as we look at our cost of deposits relative to our peers, it's a tick or 2 higher than where we want it to be. Our cost of deposit is a little bit higher. And we can attribute that largely to some of the makeup and a little bit of a concentration in public funds. And so over time, we want to reduce that reliance. There's typically a higher costing, particularly in today's time where funding is more prevalent, everybody is looking for funding. The cost of those public funds have gone up.

And the market opportunity has given us the ability to remix that funding. And really, it's driven on an effort to bring our cost of deposits down back in line with our peer and isolating that one difference. But as we look out, we feel that having a balance sheet that -- or a strategy with growing our balance sheet in the mid-single digits that over time, that allows us to properly fund it. And so I know this quarter, deposits didn't keep up with the loan growth. But over time, we expect that to be more in balance and more in line.

Stephen Scouten

Okay. Great. And then maybe thinking about the deal alongside of that, it looks like a really nice deposit base, 150-year-old bank with a low loan-to-deposit ratio. Is that one of the primary strategic motivators on this deal? Or can you talk a little bit about what you liked and what drove that decision?

Kevin Chapman

Yes. No, thank you. And it is. We -- just a continued focus of growing a stable core deposit base. That's been our focus organically. And then the opportunity with M&A to augment to complement that is something that I think we've talked about that we would look at that. And I think if you look at commercial and what it represents a very strong core funded deposit base with complementary wealth management that fits exactly the type of opportunity that would complement what we're doing. Said another way, I'm not sure right now we have a limit to our appetite on core deposits.

We continue to feel and see that deposits and funding are tightening up. That is our #1 focus is continuing to grow our core deposit base. This just gives us a complementary opportunity to bolster and enhance what we're already working on at Renasant and frankly, what we already have at Renasant, but it just complements. And look, future opportunities that may fit a similar profile, we would absolutely look at. But I would say right now, our focus is commercial and ensuring that we have a successful conversion and integration of their employees, our new teammates as well as our new customers.

Stephen Scouten

Got it. And just maybe last for me. With the strong loan growth and a pending deal, does that inhibit you from the repurchase utilization in the near-term at all?

Kevin Chapman

Jim, do you want to take that?

James Mabry

Stephen, it's Jim. So clearly, as you point out, we've got some cash in the deal mix. And that probably at the margin, temper a little bit what we do in terms of buybacks, but buybacks are very much on the table. The Board reauthorized our program yesterday at $175 million. So we do intend to be active. It just may not be quite as active over the next 12 months as it was over the prior, but we'll see sort of what emerges in the environment and what goes on with our share price and other things, but intend to be active, just maybe not quite as active as we have been.

Stephen Scouten

Yes. Makes sense when you can deploy it into acquiring low-cost deposits.

Operator

Our next question comes from Michael Rose with Raymond James.

Michael Rose

Jim, I appreciate the color around the core NIM and some of the accelerated accretion this quarter. I think you said it was up 2 basis points [ for some ] of that. Just how should we think about the next quarter or so, just given the response to some of Stephen's questions around deposits and the like? Just trying to get a better sense for how that core NIM should move forward from here.

James Mabry

So yes, I think probably like I think a lot of banks in the quarter, we feel good about the behavior of core NIM going forward. And so I would say that our outlook, assuming, I guess, as I think about the next few quarters, I think we're sort of modeling a December and 2 other hikes in '27. And with that outlook, generally, we think there's some modest upside potential in that NIM. So -- and as you point out, we had good behavior in the NIM from Q2 to Q3, particularly when you make allowance for the fact that we -- Q2's NIM was a little higher than usual because of that extraordinary item.

So we feel really good about behavior. Our core deposit cost was up, I think, 1 basis point. Loan yields were up nicely in the quarter. And if we look at sort of data from the end of Q3 and September data, all those things point to modest improvement to the NIM over the next quarter or 2.

Michael Rose

Very helpful, Jim. I appreciate it. And then, Kevin, obviously, very strong loan growth this quarter. Obviously, very strong loan production, a record moderating payoffs. How much of that acceleration really is from some of the investments you've made in talent over the past year or so versus maybe market disruption? Just trying to kind of level set what the drivers were. It seems like everything clicked this quarter. And I think you had talked about kind of a mid-single-digit loan growth kind of outlook. Is that the way we should think about 2027? Or could it be potentially stronger just given some of those dynamics that I just laid out?

Kevin Chapman

Yes. So thank you, Michael. Just the last part of your question first. So we still feel confident that mid-single-digit balance sheet growth is the appropriate level of growth. And I mean, look, as we see the environment and our outlook, we are still optimistic about being able to grow the balance sheet. We still have good commentary and dialogue with our customers. But I think that there's any hesitation to try to move that number up from the mid-single digits. It's just more concerned about from a macro backdrop. And so as we get clarity about what the macroeconomic looks like, then we might have a little bit more confidence to kind of push that number up. But right now, I think we're still very set on mid-single-digit growth, and that's the appropriate level.

As it relates to where that growth is coming from, I'd say it's coming from all across the company. If we look at it from a geographic or from a region standpoint, everybody is contributing. We look at some of our specialty lines, our secured lending, everybody is contributing. When we look at credit channels, whether it's consumer or commercial or small business or larger corporate, again, everybody is contributing to this. It's not coming from a single all for one source. And honestly, that's exciting to see because it means everybody is plugged in and capturing opportunity throughout the market.

And also, I think it's indicative of the investments that we made, not so much this year in the talent that we've hired, but really bringing The First and their team on board and allowing them to continue to achieve success, expand opportunity, capabilities. I think that's what we're seeing this year, which means the built-up demand, the opportunity from the hiring that we've done this year. And by the way, we -- this past quarter, we added another 11 revenue producers to the team. There will be the opportunity to continue to take market share that isn't quite reflected in the balance sheet yet.

James Mabry

And I would just add to that, Michael, on the right-hand side of the balance sheet, Kevin spoke earlier that underlying core deposit growth was around 8% annualized for the quarter. And of that 8%, a little over half, almost 60% of that 8% were from deposit customers who were new to Renasant, who previously had no account with Renasant. So I think that speaks. And we had that in Q2 as well. So I think the momentum certainly on the right-hand side of the balance sheet is there, and we expect that to carry over on the left-hand side of the balance sheet in terms of market share gains and net new customers to Renasant.

Kevin Chapman

Yes. And sorry, just to continue to belabor a point, but I mentioned just some of the uncertainty about the macro outlook. And again, I just want to level set the mid-single digits because we don't want to try to force balance sheet growth. And we already see very tight competition from a yield standpoint. So if we set higher levels of expectations or just try to push to get higher levels of growth, we may have to give on something to be able to get that.

And we're not going to sacrifice credit. We're not going to sacrifice yield. We're going to be relevant. We're going to be competitive, but don't want to try to force something and make a bad decision just because we're trying to set an expectation of higher levels of balance sheet growth. We need it to come at the proper level of margin and have the proper level of underwriting and credit risk as well. So that's just to level set. And I think we've talked about this in the past, that mid-single digit, we feel that gives us the ability to have a stable to expanding margin and grow the balance sheet at our historical credit risk.

Operator

The next question comes from Matt Olney at Stephens.

Matt Olney

I'll ask about just expenses, saw some really good trends in the third quarter. And you mentioned, Kevin, hiring a number of new producers in 3Q on top of the adds that we saw in the first half of the year. So it looks like expense trends are kind of well contained. Would love to appreciate any additional outlook here on the expense outlook.

James Mabry

Matt, this is Jim. So yes, we were pleased with the behavior of the expense line in the quarter and to see that number continue to trend down. I think as we look to Q4, our outlook is for a slight increase in expenses, which could almost be 100% tied to what Kevin referred to earlier, and that's hires. We've had really good success on taking advantage of the dislocation and making some key hires, and we expect that to continue in Q4. So I would say that core behavior away from dislocation opportunities remains very solid and steadfast. But again, I think you'll see the number inch up a little bit because of the hires we've made. The other thing I'd mention, which, of course, you would appreciate, there'll probably be a little bit of noise in Q4 because we've got -- we'll have likely some merger expenses related to commercial.

Matt Olney

Okay. Great. I appreciate the color there. And then I guess going back to the margin commentary that you provided earlier, any more color you can provide on just competitive pressures on both loans and deposits? Any notable changes from what you're hearing more recently compared to a few months ago?

Kevin Chapman

Not really a change. I would just say this past year, it's been competitive, just particularly from a rate standpoint. What has become more pronounced maybe over the last quarter and we saw this in Q2 is the competition on the deposit side. That continues. Everybody is searching for funding. And I think if you look at our cost of deposits with what we've been able to grow and keeping our cost of deposits relatively flat, maybe it was up a basis point or 2, it shows where our focus is around where we have the opportunity to grow core deposits.

I think Jim mentioned just some of that core deposit growth that we had in Q3, that came on at a rate, call it, in the mid-2s. And that's 1 percentage point to 1.5 percentage point less than the wholesale rates or even some of the product offerings that we're seeing in the market. So everything -- from a pricing standpoint, everything just continues to remain competitive. I think the dynamic in Q3 is that you saw the yield curve shift up. Rates were up, particularly in the 5 and the 10-year point of the curve. And we work to move our yields up, but spreads didn't necessarily expand during that same time. And so that's what we talk about with those competitive pressures is that the spreads just continue to be very tight, which means competition just is very competitive for that good balance sheet growth that everybody is looking for.

Operator

The next question comes from Will Jones with KBW.

William Jones

So I know just a couple of questions, one with the deal, a couple with the quarter. I know we never model revenue synergies with these transactions, but you call out kind of a nice little wealth business that got there. Maybe, Kevin, just talk about what you see opportunity-wise there. If I heard you right, if another Commercial Bank & Trust were to come along, Renasant is still very much open for M&A if that kind of size and deal parameter were to come along?

Kevin Chapman

Yes. So let me just clarify. So I would say that the opportunity with commercial fits the profile of what we're looking for, not necessarily looking to stack up a bunch of things, but this is the profile of what we're looking for. Just on the revenue synergies, we haven't really modeled any revenue synergies. We do believe there will be opportunity for that. With their wealth management, as we noted, they've got over $1 billion in assets under management in the wealth division, largely concentrated in trust.

We have a trust department. And so we're excited about the opportunity to expand and enhance our trust capabilities in wealth management. And also, their growth in wealth management has -- particularly in trust has been at a notch or 2 higher than ours. So there could be the opportunity for revenue synergies, but it may be more on the Renasant side and what we can learn from them about strategies to pick up trust business throughout our footprint and as much as the opportunity with them.

William Jones

Got it. Okay. I appreciate all that helpful commentary. Jim, maybe one for you. Just on the balance sheet, I know borrowings were a little bit higher in the quarter, just as we had some of the seasonal public fund runoff. Is the expectation as you guys feel better about the deposit pipeline next quarter that we would start to see those balances decline as you're replaced with some of this expected deposit growth?

James Mabry

Will, it's a good question. And we -- obviously, our loan-to-deposit ratio has inched up a little bit. I think we're 90%, 91%. And I think for us, we wouldn't want to get much above that. And so we'll be looking at that funding mix, and we saw some really encouraging things in Q3 about that core deposit growth, which was sort of masked by trying to exit some higher costing deposits. So our hope and our goal remains to match loan growth as close as we can with deposit growth. And clearly, that's a tougher thing now than it has been historically, but we feel really good about the things we're seeing in terms of our -- sort of our deposit engine working well.

So the goal is to try to match that. And look, we don't want to be reliant on wholesale funding. And whether that's advances or broker deposits, that's not really part of our plan. And so I think whether it's next quarter or in subsequent quarters, our goal would be to -- we like operating with 0 balances, both at the FHLB and with broker deposits, and that's a goal.

William Jones

Okay. That's fair enough. Maybe last for me. We don't really spend a ton of time talking about credit, especially with Renasant. If I look at NPA trends, criticized trends, everything continues to show modest improvement every quarter. We still find ourselves with a pretty high level of reserves just on a percentage basis. Is there a point in time where that starts to bleed down or we can reliably feel comfortable taking reserve levels down just as we remain relatively benign credit-wise?

David Meredith

Will, this is Dave Meredith. And I think what you'll see over the past couple of quarters as you've seen just what you've stated, as we've continued to have improved asset quality, our criticized and classified has come down for 4 quarters in a row, which you pointed out, our NPAs have been down for the past 2 quarters. And commensurate with that, you can see we brought down our reserve levels just as our model dictates based on the improvement of our asset quality as we continue to resolve problem loans criticized, classified, NPLs, so forth, past dues come down.

Our reserve requirements commensurate with that have come down. So we've seen that number come down from, I want to say, 1.56%, 1.57% a couple of quarters ago to 1.54% last quarter to 1.50%. And so we would foresee as we continue to improve asset quality, the expectation would be our model would dictate that, that reserve level would continue to come down. So we follow the model based on need for loan growth, what our asset quality is telling us. And so the past couple of quarters, based on that improvement, we've seen just that point of the reserve levels need has come down.

Operator

The next question comes from David Bishop with Hovde Group.

David Bishop

I was wondering if I could circle back to Matt's question. Just curious, Kevin or Jim, if you knew or had offhand, what the new rates on loan production were this quarter relative to last quarter, what you're seeing on that front?

James Mabry

Dave, so I can give you a couple of data points that are hopefully helpful as you think about modeling our results. So if you look at core loan yield in Q3, it was about 6.11%. And if you look at new and renewed in the quarter, it was roughly 6.19%. And I'll give you -- again, it's always a little -- giving spot numbers is a little treacherous because 1 month can be a little deceiving. But in the month of September, you look at new and renewed loan yields, it was 6.35%.

David Bishop

35%, okay. Got it. And then I may have missed this at the beginning, and apologies if so, obviously, a very strong production quarter. Just curious how the pipeline sort of compares exiting the quarter. Was that sort of dampened out? And are you seeing sort of any impact from some higher rates impacting maybe the commercial real estate pipeline?

Kevin Chapman

Yes, we've seen a little bit of pullback in the pipeline. But honestly, it still remains a healthy pipeline. So it's a little bit of a pullback from what we saw compared to the beginning of Q3. But we still see -- we're still having dialogue and conversations with customers. The pipeline hasn't gone to 0. And we continue to expect to have a good quarter as we look at Q4. With the holidays towards the end of the year, things may slow down a little bit. But just looking at our pipeline, our pipeline continues to remain healthy.

David Bishop

Got it. And then, Kevin, obviously, the opportunity sort of jumps off the page with the commercial acquisition on the deposit front. Any prospects to grow the loan book? Anything -- any niches there or markets they operate in that excites you from a loan growth perspective?

Kevin Chapman

Yes. So I think in a couple of areas. I mean, one, they just -- they have a very similar, very granular loan portfolio. So very similar to us. So there'll absolutely be opportunities that we can have or we can help enhance what they already do, particularly from a consumer or a commercial side. We'll be able to manage larger relationships that maybe today, they can't manage the full relationship. So we think that there is -- I'd say manage it from a balance sheet capacity standpoint, not so much from a talent standpoint, but a balance sheet capacity standpoint.

So I think there's real opportunity to be able to complement one another, no different than how we've done in prior mergers. But just on a combined basis, be able to enhance, provide more opportunity from what Renasant would bring to the table as well as complement what their team has there in Memphis. And the exciting thing about this is that we do overlap in Memphis with Commercial. But there's still plenty of opportunity in that market where we won't be stepping on each other's toes. So expecting a good integration of both teams there in that one overlapping market in Memphis.

James Mabry

And Dave, I'll add to just like Kevin said, just expanding on a little bit, we did with The First, the complementary lines of business we have that they don't offer, be that asset-based lending, SBA factoring, we saw it with The First, the ability to leverage their C&I customer book into some of those specialty lines business has paid huge dividends for us and the expectation to come with the acquisition of commercial, we would expect the same results.

David Bishop

Got it. I guess one final question, circling back to credit. I think the narrative noted one credit driving the increase in charge-offs provisions. Any color around that single credit?

David Meredith

Sure. Dave, we have recognized that as a problem loan back in Q1 of this year. So we've been carrying a material level of impairment on that asset for a couple of quarters while we sought to fully value the assets. We received that -- the value of those assets back in Q3. And so we went ahead and charged it down to what we believe to be the realizable value. It's a single credit in the C&I space. We view it to be a one-off transaction. And based on that valuation, we've written it down to our realizable value.

Operator

The next question comes from Janet Lee with TD Cowen.

Sun Young Lee

Apologies if I missed, but in your expectations around core NIM improving a little bit, what is the cycle to date or through the cycle interest-bearing deposit beta being assumed in that assumption?

James Mabry

Janet, this is Jim. So in terms of interest-bearing deposit beta, I think near-term, it's probably upper 40s, low 50s, and it sort of graduates from there to mid-50s is what we've got in our model.

Sun Young Lee

Okay. Got it. And maybe for Kevin, you've been adding a lot of revenue producers, 11 this quarter, and there continues to be a fair amount of disruption across your markets. You've talked about this a little bit, but can you just give us more details around where you think you are in this investment cycle today? And as you balance continued opportunities to add talent with getting productivity from the investments you've already made, how should we think about the trajectory for ROTCE over the next 12 months?

Kevin Chapman

Yes. So thank you. I still think that when it comes to some of the talent displacement, we're still in the middle innings of this. We still see the opportunity to pick up good talent that complements what we're already doing. Janet, in some cases, it's replacing existing talent. It's not just necessarily a net add to staff. It's replacing maybe some holes that we have, and we're trying to upgrade talent in certain markets. So we have put a premium on wealth management talent, on treasury management/cash management talent as well as solid, well-known bankers throughout our market, not lenders, but bankers. And I still feel like we're a little bit in the middle innings of this.

And as we look at how that should change our growth projections, right now, what we really see is it more just solidifying our outlook on that mid-single digit. And that's just not only loan growth, that's deposit growth as well and gives us greater confidence that the opportunity to grow at a faster pace is there if we can get it at the proper spreads and under the proper credit underwriting terms. But again, just to kind of summarize the question, I still feel like we're in the middle innings, but where we are focusing has really been on revenue producers that really drive the sticky type of revenue, and that's around wealth management, treasury management and then solid core bankers.

Sun Young Lee

Got it. And if I could add just one more. Commercial deal makes a lot of sense, small, strong core deposits, wealth angle. On M&A, when your ROTCE was below peers, it was easier to see how M&A and cost saves could help close that gap. And now that you're more in line with peers at that 15% to 16%, how is your thinking around M&A changed? What do you need to get out of the deal for it to create incremental value from here?

Kevin Chapman

Yes. So one, I think all M&A is at a higher bar, just looking at what the market opportunities are. And so as we looked at the opportunity to partner with commercial, that was one of our decisions to -- one of the go/no-go decisions was, would this create a distraction? Would it take us away from our organic growth? And just given its size, given that it's really isolated in one area of our footprint, it will be -- we will have -- we'll go through a conversion, we'll go through an integration. We are not dismissing that. But we didn't feel like it would be a broad-based distraction throughout the company.

And so the rest of our teams will continue to focus on just continuing to grow organically, capturing opportunity, capturing market share. But it does require a higher hurdle, M&A does, just given the -- one, our baseline of where ROTCE is today compared to in the past, but then also just the risk associated with the distraction. It just requires a higher hurdle. Jim, any specifics you want to give as it relates to the impact on ROA, ROTCE or efficiency just from the deal itself?

James Mabry

Yes, I'd be happy to. So Janet, on ROTCE, this is -- these are fully phased-in numbers. So we've got, I think, roughly half of our expense saves occurring in '27 and 100% in '28. But that sort of fully phased impact is about 70 basis points accretive to ROTCE, roughly 5 basis points accretive to NIM and 5 basis points to ROA.

Operator

[Operator Instructions] Our next question is a follow-up from Matt Olney.

Matt Olney

Just a few follow-ups here. The accretion levels took a little step down this quarter. Jim, any color or guidance you can provide on expectations for the accretion from here?

James Mabry

Sure. And Matt, I want to correct one thing I said to you earlier about core loan yields. So in the quarter, we were at 6.08%. And for the month of September, it was 6.11%. I think I misspoke on that. But yes, on accretable yield, I would say this, it's really difficult and challenging to predict the accelerated part of that. And with this -- the backdrop of higher rates, payoffs have probably been pushed out some. So that's definitely affected that accelerated piece of accretable yield.

And I think the way we're looking at Q4 is to maybe give you some numbers that might be helpful. I think total accretable yield will be around $10 million. That's our current sort of estimate and about $1.5 million of that would be accelerated. And clearly, the rate environment will have a lot to do with this, but that accelerated piece will start to move itself down and both pieces will, but the accelerated piece will probably move itself down during the course of '27.

Matt Olney

Okay. That's helpful. And I appreciate that's, as you said, not easy to predict there. And then just on the fee side, anything to call out on the fees? It looks like mortgage is a little bit softer this quarter, not a big surprise given what we've seen from some of your peers with higher rates. Any other thing to call out on the fee side? Any outlook there you can share?

James Mabry

Sure. I would say the fee outlook for Q4 is for probably a little more softness. So I think there's -- and that's -- much of that's driven by mortgage. It's just a very challenging environment. There are a lot of good things going on within mortgage. We've made some really good hires in legacy Renasant markets, but also some of the new markets, but it's just -- it's a difficult backdrop with rates where they are. So I think we're expecting mortgage to again be soft in Q4, and it's a seasonally tough quarter as well.

So in terms of other income, I would think that what we'd see is largely, probably a modest decline there driven mainly by mortgage. We've not seen -- capital markets has been soft for us during the year. I think that's -- I think we -- hopefully, we'll see some encouraging signs in the quarters ahead there that we'll see that line item grow. Wealth has been very stable, and we've had some low single-digit increases in wealth, and we expect that to continue.

Operator

Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to Kevin Chapman for any closing remarks.

Kevin Chapman

Thank you, George, and thank you to those that listened to our call this morning. We appreciate your interest in the company and look forward to meeting with you throughout the quarter. Thank you.

Operator

Ladies and gentlemen, the conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Goodbye.