Renasant eyes trust boost from deal for Tennessee bank

• Expert quote: “Their growth in wealth management — particularly in trust — has been a notch or two higher than ours.” — Renasant CEO Kevin Chapman
• Supporting data: The deal announced Tuesday would be Renasant’s 10th whole-bank acquisition since 2010.

Commercial Holding’s prowess in wealth management and the trust business played a big role in Renasant Corp.’s decision, announced late Tuesday, to acquire the Paris, Tennessee-based company.

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Commercial, the 149-year-old parent of Commercial Bank and Trust, holds $1.1 billion of assets, along with $1.2 billion in assets under management, which are concentrated in trust, according to Renasant President and CEO Kevin Chapman. 

“Their growth in wealth management — particularly in trust — has been a notch or two higher than ours,” Chapman told analysts Wednesday on a conference call. “There could be an opportunity for revenue synergies, but maybe [more] on the Renasant side in what we can learn from them about strategies to pick up trust business in our footprint.” 

The $27.5 billion-asset Renasant reported wealth revenue totaling $27 million through the first nine months of 2027, up 19% from the same period in 2025.

To acquire Commercial, Tupelo, Mississippi-based Renasant agreed to exchange 0.88 shares of its stock for each Commercial share. Commercial will add a $35.7 million special dividend prior to closing for a total price of $142 million in cash and stock. The deal is expected to close in the first quarter of 2027.

The Commercial transaction ties into Renasant’s broader strategy of growing the “sticky type of revenue,” particularly in wealth and treasury management, Chapman said.  

While Commercial operates two branches in Memphis, where Renasant has a significant presence, its seven other branches are in Paris, Jackson and Union City, Tennessee markets that will be new to the acquirer.

Commercial ranks as the number-two bank in Hardin County, home to Paris, controlling 24.5% of the $1.3 billion deposit market. 

Commercial reported deposits totaling $972 million against loans of $640.6 million on June 30, according to data from the Federal Deposit Insurance Corp. About 45% of Commercial’s deposit relationships have been with the bank for more than 10 years, according to Renasant. 

Roy Ford, Commercial’s chairman and CEO, is expected to remain with the merged company as a market executive. 

Renasant is projecting cost savings equal to 25% of Commercial’s noninterest expense base, $31.3 million in 2025. The $142 million price tag works out to 163% of Commercial’s tangible common equity, slightly above the 156% average that commercial bank sellers have received this year, according to Seaport Research Partners analyst Laurie Hunsicker. 

“We like what we see at first glance, which is a granular, low-cost core deposit base and complementary wealth capabilities,” Piper Sandler analyst Stephen Scouten wrote in a research note. 

“The Commercial deal makes a lot of sense,” TD Cowen analyst Janet Lee said on Renasant’s conference call. “It’s small with strong core deposits [alongside] the wealth angle.”

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Commercial would be Renasant’s 10th whole-bank acquisition since 2010. Chapman didn’t rule out more deals, but he said any potential future transactions would have to match the company’s organic-growth opportunities. 

“I think all merger-and-acquisition is at a higher bar, just looking at what the market opportunities are,” the CEO said. “As we looked at the opportunity to partner with Commercial … one of the go, no-go decisions was, Would this create a distraction? Would it take us away from our organic growth?”

Renasant also reported its third-quarter earnings on Tuesday. The company earned $78.9 million for the three months ended Sept. 30. That total represented a 32% increase from the Sept. 30, 2025, result, which included $13 million of charges related to Renasant’s acquisition of The First Bancshares.