What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-08-04 compared with 2023-05-08 · 336 added, 166 removed, 1180 unchanged (30% of the section changed)

7 unchanged sentences

Cash and cash equivalents 946,899 575,992

Securities held to maturity (net of allowance for credit losses of $ 32 at each of March 31, 2023 and December 31, 2022) (fair value of $ 1,204,079 and $ 1,206,540 , respectively)

Securities held to maturity (net of allowance for credit losses of $ 32 at each of June 30, 2023 and December 31, 2022) (fair value of $ 1,153,541 and $ 1,206,540 , respectively)

1,273,044 1,324,040

38 unchanged sentences

(In Thousands, Except Share Data)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

Interest income

17 unchanged sentences

Mortgage banking income 9,771 8,316 18,288 17,949

Net loss on sales of securities ( 22,438 ) — ( 22,438 ) —

BOLI income 2,402 2,331 5,405 4,484

24 unchanged sentences

(In Thousands)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

Net income $ 28,643 $ 39,678 $ 74,721 $ 73,225

1 unchanged sentence

Securities available for sale:

Unrealized holding gains (losses) on securities 15,531 ( 100,462 )

Unrealized holding losses on securities ( 15,930 ) ( 56,958 ) ( 399 ) ( 157,420 )

Reclassification adjustment for losses realized in net income 16,816 — 16,816 —

Amortization of unrealized holding losses (gains) on securities transferred to the held to maturity category 2,252 ( 164 ) 4,580 ( 238 )

12 unchanged sentences

(In Thousands, Except Share Data)

Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total

Three Months Ended March 31, 2023 Shares Amount

Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total

Six Months Ended June 30, 2023 Shares Amount

Balance at January 1, 2023 55,953,104 $ 296,483 $ ( 111,577 ) $ 1,302,422 $ 857,725 $ ( 209,037 ) $ 2,136,016

7 unchanged sentences

Balance at March 31, 2023 56,073,658 $ 296,483 $ ( 107,559 ) $ 1,299,458 $ 891,242 $ ( 192,324 ) $ 2,187,300

Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total

Three Months Ended March 31, 2022 Shares Amount

Net income — $ — $ — $ — $ 28,643 $ — $ 28,643

Other comprehensive income — — — — — 863 863

Comprehensive income 29,506

Cash dividends ($ 0.22 per share)

— — — — ( 12,573 ) — ( 12,573 )

Issuance of common stock for stock-based compensation awards 58,820 — 1,970 ( 970 ) — — 1,000

Stock-based compensation expense — — — 3,395 — — 3,395

Balance at June 30, 2023 56,132,478 $ 296,483 $ ( 105,589 ) $ 1,301,883 $ 907,312 $ ( 191,461 ) $ 2,208,628

Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total

Six Months Ended June 30, 2022 Shares Amount

Balance at January 1, 2022 55,756,233 $ 296,483 $ ( 118,027 ) $ 1,300,192 $ 741,648 $ ( 10,443 ) $ 2,209,853

7 unchanged sentences

Balance at March 31, 2022 55,880,666 $ 296,483 $ ( 114,050 ) $ 1,297,088 $ 762,690 $ ( 104,569 ) $ 2,137,642

Net income — $ — $ — $ — $ 39,678 $ — $ 39,678

Other comprehensive loss — — — — — ( 50,829 ) ( 50,829 )

Comprehensive loss ( 11,151 )

Cash dividends ($ 0.22 per share)

— — — — ( 12,488 ) — ( 12,488 )

Issuance of common stock for stock-based compensation awards 51,351 — 1,755 ( 1,833 ) — — ( 78 )

Stock-based compensation expense — — — 2,952 — — 2,952

Balance at June 30, 2022 55,932,017 $ 296,483 $ ( 112,295 ) $ 1,298,207 $ 789,880 $ ( 155,398 ) $ 2,116,877

See Notes to Consolidated Financial Statements.

2 unchanged sentences

(In Thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Operating activities

Net income $ 74,721 $ 73,225

Adjustments to reconcile net income to net cash provided by operating activities:

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Provision for credit losses 10,960 3,500

4 unchanged sentences

Gains on sales of mortgage loans held for sale ( 9,417 ) ( 9,537 )

Losses on sales of securities 22,438 —

Losses (gains) on sales of premises and equipment 7 ( 236 )

Stock-based compensation expense 6,840 6,290

(Increase) decrease in other assets ( 10,945 ) 5,746

Decrease in other liabilities ( 14,866 ) ( 24,469 )

Increase in other assets ( 26,264 ) ( 2,867 )

Increase (decrease) in other liabilities 3,576 ( 19,077 )

Net cash (used in) provided by operating activities ( 31,540 ) 349,706

1 unchanged sentence

Purchases of securities available for sale — ( 609,752 )

Proceeds from sales of securities available for sale 488,981 —

Proceeds from call/maturities of securities available for sale 90,830 249,394

9 unchanged sentences

Other, net 1,668 622

Net cash used in investing activities ( 153,231 ) ( 584,800 )

Net cash provided by (used in) investing activities 274,113 ( 1,087,213 )

Financing activities

Net decrease in noninterest-bearing deposits ( 313,879 ) ( 11,868 )

Net increase in interest-bearing deposits 738,933 97,041

Net increase in short-term borrowings 19,825 67,852

Net (decrease) increase in noninterest-bearing deposits ( 679,803 ) 23,273

Net increase (decrease) in interest-bearing deposits 1,288,198 ( 165,068 )

Net (decrease) increase in short-term borrowings ( 454,927 ) 69,215

Repayment of long-term debt — ( 32,417 )

Cash paid for dividends ( 25,134 ) ( 24,993 )

Net cash provided by financing activities 432,318 108,512

Net cash provided by (used in) financing activities 128,334 ( 129,990 )

Net increase (decrease) in cash and cash equivalents 370,907 ( 867,497 )

15 unchanged sentences

Renasant Corporation (referred to herein as the “Company”) owns and operates Renasant Bank (“Renasant Bank” or the “Bank”), Renasant Insurance, Inc., Park Place Capital Corporation and Continental Republic Capital, LLC (doing business as “Republic Business Credit”).

Through its subsidiaries, the Company offers a diversified range of financial, wealth management, fiduciary and insurance services to its retail and commercial customers from offices located throughout the Southeast as well as offers factoring and asset-based lending on a nationwide basis.

Through its subsidiaries, the Company offers a diversified range of financial, wealth management, fiduciary and insurance services to its retail and commercial customers from offices located throughout the Southeast and offers factoring and asset-based lending on a nationwide basis.

The Bank acquired Southeastern Commercial Finance, LLC (“SCF”), an asset-based lending company headquartered in Birmingham, Alabama, effective March 1, 2022.

1 unchanged sentence

In September 2022, the Bank formed Renasant Capital Funding Corporation (the “REIT”), which is intended to qualify as a real estate investment trust under the Internal Revenue Code of 1986, as amended.

The REIT will purchase from the Bank, either by assignment or participation, eligible loans collateralized by real estate located in Georgia and Florida, which allows for more effective monitoring of the loans and better managing liquidity related to such real estate assets.

The REIT purchases from the Bank, either by assignment or participation, eligible loans collateralized by real estate located in Georgia and Florida, which allows for more effective monitoring of the loans and better managing liquidity related to such real estate assets.

The arrangement provides tax benefits in certain states in which the Company operates.

9 unchanged sentences

Impact of Recently-Issued Accounting Standards and Pronouncements :

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”) , which eliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification (“ASC”) Subtopic 310-40, “Receivables - Troubled Debt Restructurings by Creditors,” while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.

Additionally, ASU 2022-02 requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases.

ASU 2022-02 was effective on January 1, 2023.

The adoption of this accounting pronouncement had no impact on the Company’s financial statements aside from additional and revised disclosures.

In March 2023, FASB issued ASU 2023-02, “Investments - Equity Method and Joint Ventures (Topic 323):

In March 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-02, “Investments - Equity Method and Joint Ventures (Topic 323):

Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” (“ASU 2023-02”) , which permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met.

7 unchanged sentences

The amortized cost and fair value of securities available for sale were as follows as of the dates presented in the tables below.

There was no allowance for credit losses allocated to any of the Company’s available for sale securities as of March 31, 2023 or December 31, 2022.

March 31, 2023

Obligations of other U.S.

Government agencies and corporations $ 170,000 $ — $ ( 4,110 ) $ 165,890

There was no allowance for credit losses allocated to any of the Company’s available for sale securities as of June 30, 2023 or December 31, 2022.

June 30, 2023

Obligations of states and political subdivisions $ 41,474 $ 16 $ ( 3,439 ) $ 38,051

22 unchanged sentences

The amortized cost and fair value of securities held to maturity were as follows as of the dates presented:

March 31, 2023

June 30, 2023

Obligations of states and political subdivisions $ 289,949 $ 23 $ ( 42,782 ) $ 247,190

21 unchanged sentences

Held to maturity securities, net of allowance for credit losses $ 1,324,040

There were no securities sold during the three months ended March 31, 2023 or 2022.

At March 31, 2023 and December 31, 2022, securities with a carrying value of $ 879,751 and $ 824,417 , respectively, were pledged to secure government, public and trust deposits.

Securities with a carrying value of $ 15,549 and $ 18,184 were pledged as collateral for short-term borrowings and derivative instruments at March 31, 2023 and December 31, 2022, respectively.

The amortized cost and fair value of securities at March 31, 2023 by contractual maturity are shown below.

Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.

Securities sold were as follows for the three and six months ended June 30, 2023.

There were no securities sold during the three and six months ended June 30, 2022.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Carrying Value Net Proceeds (Loss)

Three months ended June 30, 2023

Obligations of other U.S.

Government agencies and corporations $ 170,000 $ 164,915 $ ( 5,085 )

Obligations of states and political subdivisions 104,950 99,439 $ ( 5,511 )

Residential mortgage backed securities:

Government agency mortgage backed securities 137,196 130,602 $ ( 6,594 )

Government agency collateralized mortgage obligations 54,028 51,101 ( 2,927 )

Commercial mortgage backed securities:

Government agency mortgage backed securities 5,048 4,825 ( 223 )

Government agency collateralized mortgage obligations 40,197 38,099 ( 2,098 )

$ 511,419 $ 488,981 $ ( 22,438 )

Six months ended June 30, 2023

Obligations of other U.S.

Government agencies and corporations $ 170,000 $ 164,915 $ ( 5,085 )

Obligations of states and political subdivisions 104,950 99,439 ( 5,511 )

Residential mortgage backed securities:

Government agency mortgage backed securities 137,196 130,602 ( 6,594 )

Government agency collateralized mortgage obligations 54,028 51,101 ( 2,927 )

Commercial mortgage backed securities:

Government agency mortgage backed securities 5,048 4,825 ( 223 )

Government agency collateralized mortgage obligations 40,197 38,099 ( 2,098 )

$ 511,419 $ 488,981 $ ( 22,438 )

At June 30, 2023 and December 31, 2022, securities with a carrying value of $ 771,201 and $ 824,417 , respectively, were pledged to secure government, public and trust deposits.

Securities with a carrying value of $ 14,822 and $ 18,184 were pledged as collateral for short-term borrowings and derivative instruments at June 30, 2023 and December 31, 2022, respectively.

The amortized cost and fair value of securities at June 30, 2023 by contractual maturity are shown below.

Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.

Held to Maturity Available for Sale

22 unchanged sentences

Available for Sale:

March 31, 2023

Obligations of other U.S.

Government agencies and corporations 5 $ 165,890 $ ( 4,110 ) — $ — $ — 5 $ 165,890 $ ( 4,110 )

June 30, 2023

Obligations of states and political subdivisions 10 7,827 ( 35 ) 10 23,073 ( 3,404 ) 20 30,900 ( 3,439 )

28 unchanged sentences

Held to Maturity:

March 31, 2023

June 30, 2023

Obligations of states and political subdivisions 126 $ 242,673 $ ( 42,767 ) 1 $ 426 $ ( 15 ) 127 $ 243,099 $ ( 42,782 )

21 unchanged sentences

If the Company intends to sell the investment security or if the Company does not expect to recover the entire amortized cost basis of the security before the Company is required to sell the security or before the security’s maturity, the security is impaired and written down to fair value with all losses recognized in earnings.

The Company does not currently intend to sell any securities in an unrealized loss position, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be at maturity.

As of June 30, 2023, the Company does not intend to sell any securities in an unrealized loss position, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be at maturity.

Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period longer than twelve months, the Company is collecting principal and interest payments from the respective issuers as scheduled.

Based upon its review of securities with unrealized losses as of March 31, 2023, the Company determined that all such losses resulted from factors not deemed credit related.

As such, the Company did not record any impairment for the first three months of 2023.

The allowance for credit losses on held to maturity securities was $ 32 at March 31, 2023 and December 31, 2022.

Based upon its review of securities with unrealized losses as of June 30, 2023, the Company determined that all such losses resulted from factors not deemed credit related.

As such, the Company did not record any impairment for the first six months of 2023.

The allowance for credit losses on held to maturity securities was $ 32 at June 30, 2023 and December 31, 2022.

The Company monitors the credit quality of debt securities held to maturity using bond investment grades assigned by third party ratings agencies.

Updated investment grades are obtained as they become available from agencies.

As of March 31, 2023, 99.99 % of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

As of June 30, 2023, all of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies.

Renasant Corporation and Subsidiaries

44 unchanged sentences

Past Due Current

March 31, 2023

June 30, 2023

Commercial, financial, agricultural $ 238 $ 228 $ 1,721,134 $ 1,721,600 $ 14 $ 1,904 $ 5,552 $ 7,470 $ 1,729,070

48 unchanged sentences

Certain Modifications to Borrowers Experiencing Financial Difficulty

Certain modifications of loans made to borrowers experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension, excluding covenant waivers and modification of contingent acceleration clauses are required to be disclosed in accordance with ASU 2022-02.

The amortized cost of these modifications, all of which were in the form of interest rate reductions, totaled $ 1,184 during the first quarter of 2023, of which $ 1,029 and $ 155 were Real estate - commercial mortgage, non-owner occupied and Real estate - commercial mortgage, owner-occupied, respectively.

These modifications represent an immaterial percentage of total loans.

For modified loans in the Real estate - commercial mortgage, non-owner occupied class, the weighted average interest rate at modification was 6.67 % and was reduced to 6.55 %.

For modified loans in the Real estate - commercial mortgage, owner occupied class, the weighted average interest rate at modification was 5.43 % and was reduced to 4.75 %.

These loan modifications were current and accruing at March 31, 2023, and had no unused commitments.

Certain modifications of loans made to borrowers experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension, excluding covenant waivers and modification of contingent acceleration clauses, are required to be disclosed in accordance with Accounting Standards Update 2022-02, “Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”).

At June 30, 2023, these loan modifications were performing in accordance with their modified terms and unused commitments totaled $ 1,600 .

Upon the Company’s determination that a modified loan has been subsequently deemed uncollectible, the loan, or portion of the loan, is charged off, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted accordingly.

See Note 4, “Allowance for Credit Losses,” for more information on the allowance for credit losses.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the three months and six months ended June 30, 2023, by class and by type of modification.

The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of loans is also presented below.

Three Months Ended Six Months Ended

Interest Rate Reduction Term Extension Payment Delay Total % Total Loans by Class Interest Rate Reduction Term Extension Payment Delay Total % Total Loans by Class

Commercial, financial, agricultural $ — $ 1,210 $ — $ 1,210 0.07 % $ — $ 1,210 $ — $ 1,210 0.07 %

Real estate – construction:

Residential — 4,366 — 4,366 1.42 — 4,366 — 4,366 1.42

Total real estate – construction — 4,366 — 4,366 0.32 — 4,366 — 4,366 0.32

Real estate – 1-4 family mortgage:

Home equity 9 — — 9 — 9 — — 9 —

Total real estate – 1-4 family mortgage 9 — — 9 — 9 — — 9 —

Real estate – commercial mortgage:

Owner-occupied — — — — — 155 — — 155 0.01

Non-owner occupied — — — — — 1,026 — — 1,026 0.03

Land development — 97 277 374 0.33 — 97 277 374 0.33

Total real estate – commercial mortgage — 97 277 374 0.01 1,181 97 277 1,555 0.03

Loans, net of unearned income $ 9 $ 5,673 $ 277 $ 5,959 0.05 % $ 1,190 $ 5,673 $ 277 $ 7,140 0.06 %

The following table presents the weighted average financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2023.

Three Months Ended Six Months Ended

Interest Rate Reduction (in basis points) Term Extension (in months) Payment Delay (in months) Interest Rate Reduction (in basis points) Term Extension (in months) Payment Delay (in months)

Commercial, financial, agricultural — 2.1 — — 2.1 —

Real estate – construction:

Residential — 4.7 — — 4.7 —

Real estate – 1-4 family mortgage:

Home equity 300 — — 300 — —

Real estate – commercial mortgage:

Owner-occupied — — — 68 — —

Non-owner occupied — — — 12 — —

Land development — 8.4 3.0 — 8.4 3.0

Loans, net of unearned income 300 4.2 3.0 21 4.2 3.0

Credit Quality

For loans with a commercial purpose, internal risk-rating grades are assigned by lending, credit administration or loan review personnel, based on an analysis of the financial and collateral strength and other credit attributes underlying each loan.

For loans with a commercial purpose, internal risk-rating grades are assigned by lending, credit administration and loan review personnel, based on an analysis of the financial and collateral strength and other credit attributes underlying each loan.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Management analyzes the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the portfolio balances of commercial and commercial real estate secured loans.

2 unchanged sentences

The “Special Mention” grade (those with a risk rating of 70 ) represents a loan where a significant adverse risk-modifying action is anticipated in the near term and, if left uncorrected, could result in deterioration of the credit quality of the loan.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

migrate toward the “Substandard” grade (those with a risk rating between 80 and 95 ) generally have a higher risk of loss and therefore a higher risk factor applied to those related loan balances.

Loans that migrate toward the “Substandard” grade (those with a risk rating between 80 and 95 ) generally have a higher risk of loss and therefore a higher risk factor applied to those related loan balances.

The following tables present the Company’s loan portfolio by year of origination and internal risk-rating grades as of the dates presented:

1 unchanged sentence

2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total

March 31, 2023

June 30, 2023

Commercial, Financial, Agricultural $ 160,357 $ 337,339 $ 181,509 $ 115,728 $ 57,124 $ 48,682 $ 807,867 $ 8,310 $ 1,716,916

32 unchanged sentences

Substandard 40 — — 19 — 43 — — 102

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Term Loans Amortized Cost Basis by Origination Year

2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total

Real Estate - Commercial Mortgage $ 299,282 $ 1,632,288 $ 1,081,857 $ 703,409 $ 451,560 $ 920,297 $ 125,452 $ 24,729 $ 5,238,874

4 unchanged sentences

Non-Owner Occupied 201,254 1,258,819 739,030 472,819 279,605 548,488 63,974 21,145 3,585,134

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Term Loans Amortized Cost Basis by Origination Year

2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total

Pass 201,225 1,255,224 736,016 472,819 256,063 466,144 63,974 11,960 3,463,425

75 unchanged sentences

Substandard 17,338 11,455 5,381 6,048 9,853 103,060 3,736 11,035 167,906

The following tables present the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The following tables present the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented:

Term Loans Amortized Cost Basis by Origination Year

2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total

March 31, 2023

June 30, 2023

Commercial, Financial, Agricultural $ — $ 13 $ — $ — $ — $ 12,141 $ — $ — $ 12,154

86 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

The following table represents gross charge-offs by year of origination for the three months ended March 31, 2023:

2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Charge-offs

The following table discloses gross charge-offs by year of origination for the six months ended June 30:

2023 2022 2021 2020 2019 Prior Revolving Loans Total Charge-offs

Commercial, financial, agricultural $ 17 $ 403 $ 118 $ 120 $ — $ 3,945 $ 865 $ 5,468

Real estate – construction:

Residential — 57 — — — — — 57

Real estate – 1-4 family mortgage:

Primary — — — — — 57 — 57

Home equity — — — — 25 82 — 107

Rental/investment — 51 — — — — — 51

Total real estate – 1-4 family mortgage — 51 — — 25 139 — 215

18 unchanged sentences

The Company has made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses in the Company’s loan portfolio.

As of March 31, 2023 and December 31, 2022, the Company had accrued interest receivable for loans of $ 52,202 and $ 49,850 , respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets.

Although the Company made the election to exclude accrued interest from the measurement of the allowance for credit losses, the Company did have an allowance for credit losses on interest deferred as part of the loan deferral program established in 2020 in response to the COVID-19 pandemic of $ 1,248 as of March 31, 2023 and December 31, 2022.

As of June 30, 2023 and December 31, 2022, the Company had accrued interest receivable for loans of $ 51,410 and $ 49,850 , respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets.

Renasant Corporation and Subsidiaries

6 unchanged sentences

Loans to Individuals Total

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

Allowance for credit losses:

Beginning balance $ 44,678 $ 19,959 $ 45,981 $ 72,770 $ 2,437 $ 9,467 $ 195,292

Initial impact of purchased credit deteriorated (“PCD”) loans acquired

( 26 ) — — — — — ( 26 )

Charge-offs ( 4,939 ) ( 57 ) ( 212 ) ( 397 ) — ( 580 ) ( 6,185 )

3 unchanged sentences

Ending balance $ 41,310 $ 19,125 $ 46,434 $ 75,667 $ 2,480 $ 9,375 $ 194,391

Six Months Ended June 30, 2023

Allowance for credit losses:

Beginning balance $ 44,255 $ 19,114 $ 44,727 $ 71,798 $ 2,463 $ 9,733 $ 192,090

Initial impact of purchased credit deteriorated loans acquired during the period ( 26 ) — — — — — ( 26 )

Charge-offs ( 5,468 ) ( 57 ) ( 215 ) ( 5,512 ) — ( 1,390 ) ( 12,642 )

Recoveries 1,999 — 194 489 11 1,316 4,009

Net (charge-offs) recoveries ( 3,469 ) ( 57 ) ( 21 ) ( 5,023 ) 11 ( 74 ) ( 8,633 )

Provision for (recovery of) credit losses on loans 550 68 1,728 8,892 6 ( 284 ) 10,960

Ending balance $ 41,310 $ 19,125 $ 46,434 $ 75,667 $ 2,480 $ 9,375 $ 194,391

Period-End Amount Allocated to:

12 unchanged sentences

Mortgage Lease Financing Installment Loans to Individuals Total

Three Months Ended March 31, 2022

Three Months Ended June 30, 2022

Allowance for credit losses:

Beginning balance $ 33,606 $ 18,411 $ 36,848 $ 65,231 $ 1,582 $ 10,790 $ 166,468

Initial impact of PCD loans acquired 1,648 — — — — — 1,648

Charge-offs ( 2,239 ) — ( 161 ) ( 708 ) — ( 850 ) ( 3,958 )

1 unchanged sentence

Net (charge-offs) recoveries ( 1,808 ) — 8 ( 516 ) 11 ( 32 ) ( 2,337 )

(Recovery of) provision for credit losses on loans ( 998 ) 1,992 4,477 ( 3,858 ) 91 ( 204 ) 1,500

Provision for (recovery of) credit losses on loans ( 1,605 ) ( 1,121 ) 5,054 ( 342 ) 209 ( 195 ) 2,000

Ending balance $ 30,193 $ 17,290 $ 41,910 $ 64,373 $ 1,802 $ 10,563 $ 166,131

Six Months Ended June 30, 2022

Allowance for credit losses:

Beginning balance $ 33,922 $ 16,419 $ 32,356 $ 68,940 $ 1,486 $ 11,048 $ 164,171

Initial impact of purchased credit deteriorated loans acquired during the period 1,648 — — — — — 1,648

Charge-offs ( 4,341 ) — ( 324 ) ( 714 ) ( 7 ) ( 1,629 ) ( 7,015 )

Recoveries 1,567 — 347 347 23 1,543 3,827

Net (charge-offs) recoveries ( 2,774 ) — 23 ( 367 ) 16 ( 86 ) ( 3,188 )

Provision for (recovery of) credit losses on loans ( 2,603 ) 871 9,531 ( 4,200 ) 300 ( 399 ) 3,500

Ending balance $ 30,193 $ 17,290 $ 41,910 $ 64,373 $ 1,802 $ 10,563 $ 166,131

Period-End Amount Allocated to:

6 unchanged sentences

Nonaccruing loans with no allowance for credit losses $ 849 $ — $ 3,594 $ 3,492 $ — $ — $ 7,935

The Company recorded a provision for credit losses of $ 7,960 during the first quarter of 2023, as compared to a provision for credit losses $ 1,500 recorded in the first quarter of 2022.

The Company recorded a provision for credit losses of $ 3,000 during the second quarter of 2023, as compared to a provision for credit losses $ 2,000 recorded in the second quarter of 2022.

The Company’s allowance for credit losses model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years .

The increase in provision for credit losses on loans in the first quarter as compared to the provision in the first quarter of the prior year was driven by loan growth coupled with a slight deterioration in our economic forecast.

The increase in provision for credit losses on loans in the second quarter as compared to the provision in the second quarter of the prior year was driven by loan growth.

Allowance for Credit Losses on Unfunded Loan Commitments

The Company maintains a separate allowance for credit losses on unfunded loan commitments, which is included in the “Other liabilities” line item on the Consolidated Balance Sheets.

For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses on unfunded loan commitments, please refer to the discussion in Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses on unfunded loan commitments, please refer to the discussion in

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.

Three Months Ended March 31, 2023 2022

Three Months Ended June 30, 2023 2022

Allowance for credit losses on unfunded loan commitments:

Beginning balance $ 18,618 $ 19,485

(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense) ( 1,000 ) 450

Ending balance $ 17,618 $ 19,935

Six Months Ended June 30, 2023 2022

Allowance for credit losses on unfunded loan commitments:

Beginning balance $ 20,118 $ 20,035

Recovery of credit losses on unfunded loan commitments (included in other noninterest expense) ( 2,500 ) ( 100 )

Ending balance $ 17,618 $ 19,935

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 5 – Other Real Estate Owned

1 unchanged sentence

The following table provides details of the Company’s other real estate owned (“OREO”), net of valuation allowances and direct write-downs, as of the dates presented:

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Residential real estate $ 459 $ 699

6 unchanged sentences

Transfers of loans 4,119

Impairments ( 8 )

Dispositions ( 738 )

Balance at March 31, 2023 $ 4,818

At March 31, 2023 and December 31, 2022, the amortized cost of loans secured by Real Estate - 1-4 Family Mortgage in the process of foreclosure was $ 392 and $ 375 , respectively.

Balance at June 30, 2023 $ 5,120

At June 30, 2023 and December 31, 2022, the amortized cost of loans secured by Real Estate - 1-4 Family Mortgage in the process of foreclosure was $ 2,735 and $ 375 , respectively.

Components of the line item “Other real estate owned” in the Consolidated Statements of Income were as follows for the periods presented:

Three Months Ended

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

Repairs and maintenance $ 28 $ 17 $ 44 $ 20

1 unchanged sentence

Impairments 8 37 8 51

Net gains on OREO sales ( 95 ) ( 291 )

Net losses (gains) on OREO sales 6 ( 266 ) ( 89 ) ( 557 )

Rental income ( 2 ) ( 2 ) ( 4 ) ( 4 )

2 unchanged sentences

(In Thousands)

The carrying amounts of goodwill by operating segments for the three months ended March 31, 2023 were as follows:

The carrying amounts of goodwill by operating segments for the six months ended June 30, 2023 are set forth in the table below.

The deduction from goodwill resulted from measurement period adjustments following the RBC acquisition and is primarily related to adjustments on the fair value of other liabilities.

Community Banks Insurance Total

1 unchanged sentence

Deductions to goodwill and other adjustments ( 43 ) — ( 43 )

Balance at March 31, 2023 $ 988,898 $ 2,767 $ 991,665

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Balance at June 30, 2023 $ 988,898 $ 2,767 $ 991,665

The following table provides a summary of finite-lived intangible assets as of the dates presented:

2 unchanged sentences

Amortization Net Carrying

March 31, 2023

June 30, 2023

Core deposit intangibles $ 82,492 $ ( 66,466 ) $ 16,026

6 unchanged sentences

Current year amortization expense for finite-lived intangible assets is presented in the table below.

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

Amortization expense for:

3 unchanged sentences

The estimated amortization expense of finite-lived intangible assets for the year ending December 31, 2023 and the succeeding four years is summarized as follows:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Core Deposit Intangibles Customer Relationship Intangible Total

16 unchanged sentences

Changes in valuation allowances related to servicing rights are reported in “Mortgage banking income” on the Consolidated Statements of Income.

There was no valuation adjustment on MSRs during the three months ended March 31, 2023 or 2022.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

There was no valuation adjustment on MSRs during the six months ended June 30, 2023 or 2022.

Changes in the Company’s MSRs were as follows:

2 unchanged sentences

Amortization ( 4,733 )

Balance at March 31, 2023 $ 85,039

Balance at June 30, 2023 $ 87,432

Data and key economic assumptions related to the Company’s MSRs are as follows as of the dates presented:

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Unpaid principal balance $ 7,612,976 $ 7,494,413

8 unchanged sentences

Weighted-average remaining maturity (in years) 8.08 8.33

The Company recorded servicing fees of $ 4,265 and $ 4,423 for the three months ended March 31, 2023 and 2022, respectively, all of which are included in “Mortgage banking income” in the Consolidated Statements of Income.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The Company recorded servicing fees of $ 4,674 and $ 5,000 for the three months ended June 30, 2023 and 2022, respectively, and servicing fees of $ 8,939 and $ 9,423 for the six months ended June 30, 2023 and 2022, respectively, all of which are included in “Mortgage banking income” in the Consolidated Statements of Income.

Note 8 - Employee Benefit and Deferred Compensation Plans

5 unchanged sentences

Three Months Ended Three Months Ended

March 31, March 31,

June 30, June 30,

2023 2022 2023 2022

4 unchanged sentences

Net periodic benefit cost (return) $ 70 $ ( 175 ) $ ( 11 ) $ ( 15 )

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Pension Benefits Other Benefits

Six Months Ended Six Months Ended

June 30, June 30,

2023 2022 2023 2022

Service cost $ — $ — $ — $ 2

Interest cost 497 369 11 6

Expected return on plan assets ( 618 ) ( 842 ) — —

Recognized actuarial loss (gain) 262 122 ( 31 ) ( 38 )

Net periodic benefit cost (return) $ 141 $ ( 351 ) $ ( 20 ) $ ( 30 )

Incentive Compensation Plans

The Company maintains a long-term equity compensation plan that provides for the grant of stock options and the award of restricted stock.

There were no stock options granted, nor compensation expense associated with options recorded, during the three months ended March 31, 2023 or 2022.

There were no stock options outstanding as of March 31, 2023.

There were no stock options granted, nor compensation expense associated with options recorded, during the six months ended June 30, 2023 or 2022.

There were no stock options outstanding as of June 30, 2023.

The Company also awards performance-based restricted stock to executives and other officers and employees and time-based restricted stock to non-employee directors, executives, and other officers and employees.

The following table summarizes the changes in restricted stock as of and for the three months ended March 31, 2023:

The following table summarizes the changes in restricted stock as of and for the six months ended June 30, 2023:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Performance-Based Restricted Stock Weighted Average Grant-Date Fair Value Time-Based Restricted Stock Weighted Average Grant-Date Fair Value

4 unchanged sentences

Nonvested at end of period 237,705 $ 36.01 786,749 $ 36.17

During the three months ended March 31, 2023, the Company reissued 120,554 shares from treasury in connection with awards of restricted stock.

The Company recorded total stock-based compensation expense of $ 3,445 and $ 3,338 for the three months ended March 31, 2023 and 2022, respectively .

During the six months ended June 30, 2023, the Company reissued 142,012 shares from treasury in connection with awards of restricted stock.

The Company recorded total stock-based compensation expense of $ 3,395 and $ 2,952 for the three months ended June 30, 2023 and 2022, respectively, and $ 6,840 and $ 6,290 for the six months ended June 30, 2023 and 2022, respectively .

Note 9 – Derivative Instruments

8 unchanged sentences

The following table provides a summary of the Company’s derivatives not designated as hedging instruments as of the dates presented:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Balance Sheet March 31, 2023 December 31, 2022

Balance Sheet June 30, 2023 December 31, 2022

Location Notional Amount Fair Value Notional Amount Fair Value

10 unchanged sentences

Gains and losses included in the Consolidated Statements of Income related to the Company’s derivative financial instruments were as follows as of the dates presented:

Three Months Ended March 31,

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended June 30, Six Months Ended June 30,

2023 2022 2023 2022

Interest rate contracts:

8 unchanged sentences

The Company uses both interest rate swap contracts and interest rate collars in an effort to manage future interest rate exposure on borrowings.

The swap hedging strategy converts the LIBOR-based variable interest rate on the forecasted borrowings to a fixed interest rate.

The swap hedging strategy converts the variable interest rate on the forecasted borrowings to a fixed interest rate.

The collar hedging strategy stabilizes interest rate fluctuation by setting both a floor and a cap.

1 unchanged sentence

The Company entered into a second interest rate collar in October 2022 with a 2.75 % floor and 4.75 % cap.

As of March 31, 2023, the Company is hedging its exposure to the variability of future cash flows through 2032 and a portion of these hedges are forward starting.

As of June 30, 2023, the Company is hedging its exposure to the variability of future cash flows through 2032 and a portion of these hedges are forward starting.

The following table provides a summary of the Company’s derivatives designated as cash flow hedges as of the dates presented:

Balance Sheet March 31, 2023 December 31, 2022

Balance Sheet June 30, 2023 December 31, 2022

Location Notional Amount Fair Value Notional Amount Fair Value

7 unchanged sentences

Totals $ 450,000 $ 4,355 $ 250,000 $ 746

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Changes in fair value of the cash flow hedges are, to the extent that the hedging relationship is effective, recorded as other comprehensive income and are subsequently recognized in earnings at the same time that the hedged item is recognized in earnings.

1 unchanged sentence

The assessment of the effectiveness of the hedging relationship is evaluated under the hypothetical derivative method.

There were no ineffective portions for the three months ended March 31, 2023 or 2022.

The impact on other comprehensive income for the three months ended March 31, 2023 and 2022 is discussed in Note 12, “Other Comprehensive Income (Loss).”

There were no ineffective portions for the six months ended June 30, 2023 or 2022.

The impact on other comprehensive income for the six months ended June 30, 2023 and 2022 is discussed in Note 12, “Other Comprehensive Income (Loss).”

Derivatives designated as fair value hedges

1 unchanged sentence

The Company enters into interest rate swap agreements to manage interest rate exposure on certain of the Company’s fixed-rate subordinated notes.

The agreements convert the fixed interest rates to LIBOR-based variable interest rates.

The agreements convert the fixed interest rates to variable interest rates.

The following table provides a summary of the Company's derivatives designated as fair value hedges as of the dates presented:

Balance Sheet March 31, 2023 December 31, 2022

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Balance Sheet June 30, 2023 December 31, 2022

Location Notional Amount Fair Value Notional Amount Fair Value

3 unchanged sentences

Amount of Gain (Loss) Recognized in Income

Income Statement Three Months Ended March 31,

Income Statement Three Months Ended June 30, Six Months Ended June 30,

Location 2023 2022 2023 2022

5 unchanged sentences

Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Liability

Balance Sheet Location March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022

Balance Sheet Location June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022

Long-term debt $ 79,550 $ 78,881 $ 19,207 $ 19,789

3 unchanged sentences

The following table presents the Company’s gross derivative positions as recognized in the Consolidated Balance Sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Offsetting Derivative Assets Offsetting Derivative Liabilities

2023 December 31, 2022 March 31,

2023 December 31, 2022 June 30,

2023 December 31, 2022

8 unchanged sentences

(In Thousands)

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The following table is a summary of the Company’s temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities and their approximate tax effects as of the dates presented.

March 31, December 31,

June 30, December 31,

Deferred tax assets

18 unchanged sentences

Net deferred tax assets $ 102,981 $ 110,408

For the three months ended March 31, 2023 and 2022, the Company recorded a provision for income taxes totaling $ 11,322 and $ 7,935 , respectively.

For the six months ended June 30, 2023 and 2022, the Company recorded a provision for income taxes totaling $ 17,956 and $ 18,792 , respectively.

The provision for income taxes includes both federal and state income taxes and differs from the statutory rate due to favorable permanent differences.

2 unchanged sentences

The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state departments of revenue for the years ending December 31, 2020 through December 31, 2022.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 11 – Fair Value Measurements

1 unchanged sentence

Fair Value Measurements and the Fair Level Hierarchy

ASC 820, “Fair Value Measurements and Disclosures,” provides guidance for using fair value to measure assets and liabilities and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.

Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” provides guidance for using fair value to measure assets and liabilities and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.

The fair value hierarchy gives the highest priority to a valuation based on quoted prices in active markets for identical assets and liabilities (Level 1), moderate priority to a valuation based on quoted prices in active markets for similar assets and liabilities and/or based on assumptions that are observable in the market (Level 2), and the lowest priority to a valuation based on assumptions that are not observable in the market (Level 3).

2 unchanged sentences

The Company’s recurring fair value measurements are based on the requirement to carry such assets and liabilities at fair value or the Company’s election to carry certain eligible assets and liabilities at fair value.

Assets and liabilities that are required to be carried at fair value on a recurring basis include securities available for sale and derivative instruments.

Assets and liabilities that are required to be

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

carried at fair value on a recurring basis include securities available for sale and derivative instruments.

The Company has elected to carry mortgage loans held for sale at fair value on a recurring basis as permitted under the guidance in ASC 825, “Financial Instruments” (“ASC 825”).

19 unchanged sentences

The following tables present assets and liabilities that are measured at fair value on a recurring basis as of the dates presented:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Level 1 Level 2 Level 3 Totals

March 31, 2023

June 30, 2023

Financial assets:

6 unchanged sentences

$ — $ 35,151 $ — $ 35,151

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Level 1 Level 2 Level 3 Totals

10 unchanged sentences

Transfers between levels of the hierarchy are deemed to have occurred at the end of period.

There were no such transfers between levels of the fair value hierarchy during the three months ended March 31, 2023.

For the three months ended March 31, 2023 and 2022, respectively, there were no gains or losses included in earnings that were attributable to the change in unrealized gains or losses related to assets or liabilities held at the end of each respective period that were measured on a recurring basis using significant unobservable inputs.

There were no such transfers between levels of the fair value hierarchy during the six months ended June 30, 2023.

For the six months ended June 30, 2023 and 2022, respectively, there were no gains or losses included in earnings that were attributable to the change in unrealized gains or losses related to assets or liabilities held at the end of each respective period that were measured on a recurring basis using significant unobservable inputs.

Nonrecurring Fair Value Measurements

2 unchanged sentences

The following tables provide the fair value measurement for assets measured at fair value on a nonrecurring basis that were still held on the Consolidated Balance Sheets as of the dates presented and the level within the fair value hierarchy each is classified:

March 31, 2023 Level 1 Level 2 Level 3 Totals

June 30, 2023 Level 1 Level 2 Level 3 Totals

Individually evaluated loans, net of allowance for credit losses $ — $ — $ 51,537 $ 51,537

6 unchanged sentences

The following methods and assumptions are used by the Company to estimate the fair values of the Company’s financial assets measured on a nonrecurring basis:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Individually evaluated loans:

Loans are individually evaluated for credit losses each quarter taking into account the fair value of the collateral less estimated selling costs.

Individually evaluated loans are reviewed and evaluated for credit losses on at least a quarterly basis for additional impairment and adjusted accordingly, taking into account the fair value of the collateral less estimated selling costs.

Collateral may be real estate and/or business assets including but not limited to equipment, inventory and accounts receivable.

3 unchanged sentences

Since not all valuation inputs are observable, these nonrecurring fair value determinations are classified as Level 3.

Individually evaluated loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors previously identified.

Individually evaluated loans that were measured or re-measured at fair value had a carrying value of $ 35,184 and $ 18,288 at March 31, 2023 and December 31, 2022, respectively, and a specific reserve for these loans of $ 15,070 and $ 3,556 was included in the allowance for credit losses as of such dates.

Individually evaluated loans that were measured or re-measured at fair value had a carrying value of $ 63,680 and $ 18,288 at June 30, 2023 and December 31, 2022, respectively, and a specific reserve for these loans of $ 12,143 and $ 3,556 was included in the allowance for credit losses as of such dates.

Other real estate owned :

2 unchanged sentences

Subsequently, it may be necessary to record nonrecurring fair value adjustments for declines in fair value.

Fair value, when recorded, is determined based on appraisals by qualified licensed appraisers and adjusted for management’s estimates of costs to sell.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

when recorded, is determined based on appraisals by qualified licensed appraisers and adjusted for management’s estimates of costs to sell.

Accordingly, values for OREO are classified as Level 3.

8 unchanged sentences

Because these factors are not all observable and include management’s assumptions, mortgage servicing rights are classified within Level 3 of the fair value hierarchy.

Mortgage servicing rights were carried at amortized cost at March 31, 2023 and December 31, 2022.

There were no valuation adjustments on MSRs during the three months ended March 31, 2023 or 2022.

The following table presents information as of March 31, 2023 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:

Mortgage servicing rights were carried at amortized cost at June 30, 2023 and December 31, 2022.

There were no valuation adjustments on MSRs during the six months ended June 30, 2023 or 2022.

The following table presents information as of June 30, 2023 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:

Financial instrument Fair

6 unchanged sentences

Electing to measure these assets at fair value reduces certain timing differences and better matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them.

A net gain of $ 1,780 and net loss of $ 13,021 resulting from fair value changes of these mortgage loans were recorded in income during the three months ended March 31, 2023 and 2022, respectively.

A net gain of $ 1,133 and net loss of $ 9,528 resulting from fair value changes of these mortgage loans were recorded in income during the six months ended June 30, 2023 and 2022, respectively.

The amount does not reflect changes in fair values of related derivative instruments used to hedge exposure to market-related risks associated with these mortgage loans.

The change in fair value of both mortgage loans held for sale and the related derivative instruments are recorded in “Mortgage banking income” in the Consolidated Statements of Income.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The Company’s valuation of mortgage loans held for sale incorporates an assumption for credit risk;

1 unchanged sentence

Interest income on mortgage loans held for sale measured at fair value is accrued as it is earned based on contractual rates and is reflected in loan interest income on the Consolidated Statements of Income.

The following table summarizes the differences between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of March 31, 2023 and December 31, 2022:

The following table summarizes the differences between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of June 30, 2023 and December 31, 2022:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Fair Value Aggregate

Balance Difference

March 31, 2023

June 30, 2023

Mortgage loans held for sale measured at fair value $ 249,615 $ 246,520 $ 3,095

3 unchanged sentences

The carrying amounts and estimated fair values of the Company’s financial instruments, including those assets and liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis, were as follows as of the dates presented:

As of March 31, 2023 Carrying

As of June 30, 2023 Carrying

Value Level 1 Level 2 Level 3 Total

13 unchanged sentences

Derivative instruments 35,151 — 35,151 — 35,151

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

As of December 31, 2022 Carrying

21 unchanged sentences

(Benefit) Net of Tax

Three months ended March 31, 2023

Three months ended June 30, 2023

Securities available for sale:

Unrealized holding gains on securities $ 20,714 $ 5,183 $ 15,531

Unrealized holding losses on securities $ ( 21,283 ) $ ( 5,353 ) $ ( 15,930 )

Reclassification adjustment for losses realized in net income 22,438 5,622 16,816

Amortization of unrealized holding losses on securities transferred to the held to maturity category 3,026 774 2,252

2 unchanged sentences

Unrealized holding losses on derivative instruments ( 3,167 ) ( 806 ) ( 2,361 )

Reclassification adjustment for gains realized in net income — — —

Total derivative instruments ( 3,167 ) ( 806 ) ( 2,361 )

3 unchanged sentences

Total other comprehensive income $ 1,129 $ 266 $ 863

Three months ended March 31, 2022

Three months ended June 30, 2022

Securities available for sale:

9 unchanged sentences

Total other comprehensive loss $ ( 68,183 ) $ ( 17,354 ) $ ( 50,829 )

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Pre-Tax Tax Expense

(Benefit) Net of Tax

Six months ended June 30, 2023

Securities available for sale:

Unrealized holding losses on securities $ ( 569 ) $ ( 170 ) $ ( 399 )

Reclassification adjustment for losses realized in net income 22,438 5,622 16,816

Amortization of unrealized holding losses on securities transferred to the held to maturity category 6,154 1,574 4,580

Total securities available for sale 28,023 7,026 20,997

Derivative instruments:

Unrealized holding losses on derivative instruments ( 4,823 ) ( 1,230 ) ( 3,593 )

Total derivative instruments ( 4,823 ) ( 1,230 ) ( 3,593 )

Defined benefit pension and post-retirement benefit plans:

Amortization of net actuarial loss recognized in net periodic pension cost 231 59 172

Total defined benefit pension and post-retirement benefit plans 231 59 172

Total other comprehensive income $ 23,431 $ 5,855 $ 17,576

Six months ended June 30, 2022

Securities available for sale:

Unrealized holding losses on securities $ ( 211,161 ) $ ( 53,741 ) $ ( 157,420 )

Amortization of unrealized holding gains on securities transferred to the held to maturity category ( 319 ) ( 81 ) ( 238 )

Total securities available for sale ( 211,480 ) ( 53,822 ) ( 157,658 )

Derivative instruments:

Unrealized holding gains on derivative instruments 16,957 4,316 12,641

Total derivative instruments 16,957 4,316 12,641

Defined benefit pension and post-retirement benefit plans:

Amortization of net actuarial loss recognized in net periodic pension cost 83 21 62

Total defined benefit pension and post-retirement benefit plans 83 21 62

Total other comprehensive loss $ ( 194,440 ) $ ( 49,485 ) $ ( 144,955 )

The accumulated balances for each component of other comprehensive loss, net of tax, were as follows as of the dates presented:

20 unchanged sentences

Net income per common share - diluted $ 0.51 $ 0.71

Six Months Ended

Net income applicable to common stock $ 74,721 $ 73,225

Average common shares outstanding 56,058,585 55,858,243

Net income per common share - basic $ 1.33 $ 1.31

Net income applicable to common stock $ 74,721 $ 73,225

Average common shares outstanding 56,058,585 55,858,243

Effect of dilutive stock-based compensation 271,710 272,519

Average common shares outstanding - diluted 56,330,295 56,130,762

Net income per common share - diluted $ 1.33 $ 1.30

Stock-based compensation awards that could potentially dilute basic net income per common share in the future that were not included in the computation of diluted net income per common share due to their anti-dilutive effect were as follows for the periods presented:

1 unchanged sentence

Number of shares 179,226 213,953

Six Months Ended

Number of shares 182,226 214,203

Note 14 – Regulatory Matters

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

(In Thousands)

5 unchanged sentences

Those guidelines specify capital tiers, which include the following classifications:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Capital Tiers Tier 1 Capital to

20 unchanged sentences

The following table provides the capital and risk-based capital and leverage ratios for the Company and for the Bank as of the dates presented:

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Amount Ratio Amount Ratio

14 unchanged sentences

The required capital conservation buffer is 2.5% of CET1 to risk-weighted assets in addition to the amount necessary to meet minimum risk-based capital requirements.

As shown in the table above, as of March 31, 2023, the Company’s CET1 capital was in excess of the capital conservation buffer.

As shown in the table above, as of June 30, 2023, the Company’s CET1 capital was in excess of the capital conservation buffer.

The Company elected to take advantage of transitional relief offered by the Federal Reserve and the FDIC to delay for two years the estimated impact of ASC Topic 326, “Financial Instruments - Credit Losses” (“ASC 326”), often referred to as CECL, on regulatory capital, followed by a three-year transitional period to phase out the capital benefit provided by the two-year delay.

The three-year transitional period began on January 1, 2022 .

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 15 – Segment Reporting

3 unchanged sentences

• The Insurance segment includes a full service insurance agency offering all major lines of commercial and personal insurance through major carriers.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

inclusive of personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts.

• The Wealth Management segment, through the Trust division, offers a broad range of fiduciary services including the administration (as trustee or in other fiduciary or representative capacities) of benefit plans, management of trust accounts, inclusive of personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts.

In addition, the Wealth Management segment, through the Financial Services division, provides specialized products and services to customers, which include fixed and variable annuities, mutual funds and other investment services through a third party broker-dealer.

5 unchanged sentences

Management Other Consolidated

Three months ended March 31, 2023

Three months ended June 30, 2023

Net interest income (loss) $ 136,370 $ 428 $ 28 $ ( 6,610 ) $ 130,216

7 unchanged sentences

Goodwill $ 988,898 $ 2,767 — — $ 991,665

Three months ended March 31, 2022

Three months ended June 30, 2022

Net interest income (loss) $ 117,580 $ 95 $ 529 $ ( 4,689 ) $ 113,515

7 unchanged sentences

Goodwill $ 943,524 $ 2,767 — — $ 946,291

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Banks Insurance Wealth

Management Other Consolidated

Six months ended June 30, 2023

Net interest income (loss) $ 278,153 $ 714 $ 52 $ ( 12,928 ) $ 265,991

Provision for credit losses 10,960 — — — 10,960

Noninterest income (loss) 37,652 6,221 11,450 ( 804 ) 54,519

Noninterest expense 202,663 4,109 9,335 766 216,873

Income (loss) before income taxes 102,182 2,826 2,167 ( 14,498 ) 92,677

Income tax expense (benefit) 20,980 732 ( 14 ) ( 3,742 ) 17,956

Net income (loss) $ 81,202 $ 2,094 $ 2,181 $ ( 10,756 ) $ 74,721

Total assets $ 17,181,988 $ 37,867 $ 4,757 $ ( 270 ) $ 17,224,342

Goodwill $ 988,898 $ 2,767 $ — $ — $ 991,665

Six months ended June 30, 2022

Net interest income (loss) $ 221,512 $ 188 $ 1,019 $ ( 9,575 ) $ 213,144

Provision for credit losses 3,500 — — — 3,500

Noninterest income (loss) 57,035 5,708 12,820 ( 891 ) 74,672

Noninterest expense 178,120 4,121 9,346 712 192,299

Income (loss) before income taxes 96,927 1,775 4,493 ( 11,178 ) 92,017

Income tax expense (benefit) 21,224 466 — ( 2,898 ) 18,792

Net income (loss) $ 75,703 $ 1,309 $ 4,493 $ ( 8,280 ) $ 73,225

Total assets $ 16,520,685 $ 34,264 $ 65,709 $ ( 2,557 ) $ 16,618,101

Goodwill $ 943,524 $ 2,767 $ — $ — $ 946,291

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements