What changed in this filing

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Item 1. Financial Statements

2023-11-08 compared with 2023-08-04 · 159 added, 145 removed, 1371 unchanged (18% of the section changed)

3 unchanged sentences

(In Thousands, Except Share Data)

September 30,

2023 December 31, 2022

2 unchanged sentences

Cash and cash equivalents 741,156 575,992

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)

Securities held to maturity (net of allowance for credit losses of $ 32 at each of September 30, 2023 and December 31, 2022) (fair value of $ 1,079,123 and $ 1,206,540 , respectively)

1,245,595 1,324,040

38 unchanged sentences

(In Thousands, Except Share Data)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

45 unchanged sentences

(In Thousands)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

4 unchanged sentences

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

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

Amortization of unrealized holding losses on securities transferred to the held to maturity category 2,947 1,207 7,527 969

Total securities available for sale ( 9,936 ) ( 62,372 ) 11,061 ( 220,030 )

Derivative instruments:

Unrealized holding (losses) gains on derivative instruments ( 2,361 ) 6,262 ( 3,593 ) 12,641

Unrealized holding gains (losses) on derivative instruments 1,987 1,687 ( 1,606 ) 14,328

Total derivative instruments 1,987 1,687 ( 1,606 ) 14,328

2 unchanged sentences

Total defined benefit pension and post-retirement benefit plans 86 31 258 93

Other comprehensive income (loss), net of tax 863 ( 50,829 ) 17,576 ( 144,955 )

Other comprehensive (loss) income, net of tax ( 7,863 ) ( 60,654 ) 9,713 ( 205,609 )

Comprehensive income (loss) $ 33,970 $ ( 14,087 ) $ 126,267 $ ( 85,817 )

4 unchanged sentences

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

Six Months Ended June 30, 2023 Shares Amount

Nine Months Ended September 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

15 unchanged sentences

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

Net income — — — — $ 41,833 $ 41,833

Other comprehensive loss — — — — — ( 7,863 ) ( 7,863 )

Comprehensive income 33,970

Cash dividends ($ 0.22 per share)

— — — — ( 12,572 ) — ( 12,572 )

Issuance of common stock for stock-based compensation awards 8,235 — 289 ( 416 ) — — ( 127 )

Stock-based compensation expense — — — 3,424 — — 3,424

Balance at September 30, 2023 56,140,713 $ 296,483 $ ( 105,300 ) $ 1,304,891 $ 936,573 $ ( 199,324 ) $ 2,233,323

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

Six Months Ended June 30, 2022 Shares Amount

Nine Months Ended September 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

15 unchanged sentences

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

Net income — — — — $ 46,567 — $ 46,567

Other comprehensive loss — — — — — ( 60,654 ) ( 60,654 )

Comprehensive loss ( 14,087 )

Cash dividends ($ 0.22 per share)

— — — — ( 12,496 ) — ( 12,496 )

Issuance of common stock for stock-based compensation awards 21,087 — 718 ( 1,000 ) — — ( 282 )

Stock-based compensation expense — — — 2,269 — — 2,269

Balance at September 30, 2022 55,953,104 $ 296,483 $ ( 111,577 ) $ 1,299,476 $ 823,951 $ ( 216,052 ) $ 2,092,281

See Notes to Consolidated Financial Statements.

2 unchanged sentences

(In Thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

Operating activities

Net income $ 116,554 $ 119,792

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

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

Provision for credit losses 16,275 13,300

Depreciation, amortization and accretion 26,723 33,590

Deferred income tax expense 302 5,150

Deferred income tax (benefit) expense ( 1,231 ) 3,600

Proceeds from sale of MSR — 18,525

Gain on sale of MSR — ( 2,960 )

Funding of mortgage loans held for sale ( 1,057,277 ) ( 1,436,158 )

6 unchanged sentences

Increase (decrease) in other liabilities 22,989 ( 10,253 )

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

Net cash provided by operating activities 48,124 463,107

Investing activities

63 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 June 30, 2023 or December 31, 2022.

June 30, 2023

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

September 30, 2023

Obligations of states and political subdivisions $ 38,200 $ 71 $ ( 4,732 ) $ 33,539

22 unchanged sentences

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

June 30, 2023

September 30, 2023

Obligations of states and political subdivisions $ 289,053 $ — $ ( 57,660 ) $ 231,393

21 unchanged sentences

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

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)

Securities sold were as follows for the nine months ended September 30, 2023.

There were no securities sold during the third quarter of 2023 nor the three and nine months ended September 30, 2022.

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

Nine months ended September 30, 2023

Obligations of other U.S.

8 unchanged sentences

$ 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.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

At September 30, 2023 and December 31, 2022, securities with a carrying value of $ 783,250 and $ 824,417 , respectively, were pledged to secure government, public and trust deposits.

Securities with a carrying value of $ 24,034 and $ 18,184 were pledged as collateral for short-term borrowings and derivative instruments at September 30, 2023 and December 31, 2022, respectively.

The amortized cost and fair value of securities at September 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.

23 unchanged sentences

Available for Sale:

June 30, 2023

September 30, 2023

Obligations of states and political subdivisions 6 5,196 ( 27 ) 16 23,814 ( 4,705 ) 22 29,010 ( 4,732 )

28 unchanged sentences

Held to Maturity:

June 30, 2023

September 30, 2023

Obligations of states and political subdivisions — $ — $ — 129 $ 231,393 $ ( 57,660 ) 129 $ 231,393 $ ( 57,660 )

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.

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.

As of September 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 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.

Based upon its review of securities with unrealized losses as of September 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 nine months of 2023.

The allowance for credit losses on held to maturity securities was $ 32 at September 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 June 30, 2023, all of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies.

As of September 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

4 unchanged sentences

The following is a summary of loans and leases as of the dates presented:

September 30,

2023 December 31, 2022

38 unchanged sentences

Past Due Current

June 30, 2023

September 30, 2023

Commercial, financial, agricultural $ 343 $ 46 $ 1,811,803 $ 1,812,192 $ 14 $ 2,737 $ 4,948 $ 7,699 $ 1,819,891

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 Accounting Standards Update 2022-02, “Financial Instruments - Credit Losses (Topic 326):

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, “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.

At September 30, 2023, modifications meeting the disclosure criteria in ASU 2022-02 were performing in accordance with their modified terms, and unused commitments totaled $ 721 .

Upon the Company’s determination that a modification 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.

1 unchanged sentence

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

The following table presents the amortized cost basis of loans that were experiencing financial difficulty, modified during the nine months ended September 30, 2023 and required to be disclosed under ASU 2022-02, by class and by type of modification.

There were no modifications requiring disclosure for the three months ended September 30, 2023.

The percentage of the amortized cost basis for each class of disclosed modifications as compared to the amortized cost basis of each class of loans is also presented below.

Nine Months Ended September 30, 2023

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

Commercial, financial, agricultural $ — $ 1,209 $ — $ 1,209 0.07 %

8 unchanged sentences

Non-owner occupied 1,008 — — 1,008 0.03

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

Total real estate – commercial mortgage 1,157 96 277 1,530 0.03

Loans, net of unearned income $ 1,164 $ 5,056 $ 277 $ 6,497 0.05 %

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)

The following table presents the weighted average financial effect of loan modifications requiring disclosure under ASU 2022-02 by class of financing receivable for the nine months ended September 30, 2023.

Nine Months Ended

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

Commercial, financial, agricultural — 2.1 —

6 unchanged sentences

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 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.

4 unchanged sentences

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

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

June 30, 2023

September 30, 2023

Commercial, Financial, Agricultural $ 209,517 $ 321,447 $ 173,774 $ 111,082 $ 54,041 $ 43,272 $ 887,332 $ 9,638 $ 1,810,103

32 unchanged sentences

Substandard 39 — — 19 — 41 — — 99

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 $ 497,538 $ 1,621,729 $ 1,096,136 $ 684,074 $ 440,916 $ 797,222 $ 135,203 $ 26,339 $ 5,299,157

8 unchanged sentences

Land Development 17,456 46,197 14,304 5,090 5,042 6,668 5,620 186 100,563

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 16,999 42,280 13,953 4,658 5,022 6,423 5,597 186 95,118

71 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

June 30, 2023

September 30, 2023

Commercial, Financial, Agricultural $ — $ 13 $ — $ — $ — $ 9,775 $ — $ — $ 9,788

1 unchanged sentence

Non-Performing Loans — — — — — — — — —

Lease Financing Receivables $ — $ — $ — $ — $ — $ 17 $ — $ — $ 17

Performing Loans — — — — — 17 — — 17

Non-Performing Loans — — — — — — — — —

Real Estate - Construction $ 27,241 $ 61,868 $ 24,191 $ — $ — $ — $ 189 $ 8 $ 113,497

83 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

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

The following table discloses gross charge-offs by year of origination for the nine months ended September 30, 2023:

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

Commercial, financial, agricultural $ 898 $ 1,064 $ 59 $ 123 $ 583 $ 4,128 $ 865 $ 7,720

Lease financing — 273 248 72 48 — — 641

Real estate – construction:

24 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 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.

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 $ 1,231 and $ 1,248 as of June 30, 2023 and December 31, 2022, respectively.

As of September 30, 2023 and December 31, 2022, the Company had accrued interest receivable for loans of $ 53,565 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 $ 1,245 and $ 1,248 as of September 30, 2023 and December 31, 2022, respectively.

Renasant Corporation and Subsidiaries

6 unchanged sentences

Loans to Individuals Total

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Allowance for credit losses:

5 unchanged sentences

Ending balance $ 44,444 $ 19,656 $ 45,799 $ 75,233 $ 3,355 $ 9,286 $ 197,773

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Allowance for credit losses:

20 unchanged sentences

Mortgage Lease Financing Installment Loans to Individuals Total

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Allowance for credit losses:

5 unchanged sentences

Ending balance $ 30,503 $ 18,744 $ 43,532 $ 69,267 $ 2,314 $ 9,996 $ 174,356

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Allowance for credit losses:

14 unchanged sentences

Nonaccruing loans with no allowance for credit losses $ 429 $ 153 $ 5,809 $ 4,633 $ — $ 2 $ 11,026

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 recorded a provision for credit losses of $ 5,315 during the third quarter of 2023, as compared to a provision for credit losses $ 9,800 recorded in the third 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 second quarter as compared to the provision in the second quarter of the prior year was driven by loan growth.

The provision for credit losses on loans of $ 5,315 in the third quarter of 2023 was primarily 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

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.

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 June 30, 2023 2022

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

Three Months Ended September 30, 2023 2022

Allowance for credit losses on unfunded loan commitments:

Beginning balance $ 17,618 $ 19,935

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

Recovery of credit losses on unfunded loan commitments (included in other noninterest expense) ( 700 ) —

Ending balance $ 16,918 $ 19,935

Six Months Ended June 30, 2023 2022

Nine Months Ended September 30, 2023 2022

Allowance for credit losses on unfunded loan commitments:

5 unchanged sentences

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:

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Residential real estate $ 1,045 $ 699

8 unchanged sentences

Dispositions ( 2,544 )

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.

Balance at September 30, 2023 $ 9,258

At September 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 $ 489 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:

1 unchanged sentence

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

2 unchanged sentences

Impairments 10 59 18 110

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

Net gains on OREO sales ( 200 ) ( 54 ) ( 289 ) ( 611 )

Rental income ( 1 ) ( 2 ) ( 5 ) ( 6 )

2 unchanged sentences

(In Thousands)

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

The carrying amounts of goodwill by operating segments for the nine months ended September 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.

2 unchanged sentences

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

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

Balance at September 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

June 30, 2023

September 30, 2023

Core deposit intangibles $ 82,492 $ ( 67,443 ) $ 15,049

6 unchanged sentences

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

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

24 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 six months ended June 30, 2023 or 2022.

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

Changes in the Company’s MSRs were as follows:

2 unchanged sentences

Amortization ( 7,208 )

Balance at June 30, 2023 $ 87,432

Balance at September 30, 2023 $ 90,241

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

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Unpaid principal balance $ 7,707,919 $ 7,494,413

10 unchanged sentences

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.

The Company recorded servicing fees of $ 4,335 and $ 4,445 for the three months ended September 30, 2023 and 2022, respectively, and servicing fees of $ 13,275 and $ 13,868 for the nine months ended September 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

June 30, June 30,

September 30, September 30,

2023 2022 2023 2022

5 unchanged sentences

Pension Benefits Other Benefits

Six Months Ended Six Months Ended

June 30, June 30,

Nine Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

6 unchanged sentences

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 six months ended June 30, 2023 or 2022.

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

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

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 six months ended June 30, 2023:

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

Renasant Corporation and Subsidiaries

6 unchanged sentences

Nonvested at end of period 237,705 $ 36.01 772,242 $ 36.33

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 .

During the nine months ended September 30, 2023, the Company reissued 150,247 shares from treasury in connection with awards of restricted stock.

The Company recorded total stock-based compensation expense of $ 3,424 and $ 2,268 for the three months ended September 30, 2023 and 2022, respectively, and $ 10,264 and $ 8,558 for the nine months ended September 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:

Balance Sheet June 30, 2023 December 31, 2022

Balance Sheet September 30, 2023 December 31, 2022

Location Notional Amount Fair Value Notional Amount Fair Value

12 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

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

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

13 unchanged sentences

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

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.

As of September 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 June 30, 2023 December 31, 2022

Balance Sheet September 30, 2023 December 31, 2022

Location Notional Amount Fair Value Notional Amount Fair Value

4 unchanged sentences

Derivative liabilities:

Interest rate swaps Other Liabilities $ — $ — $ — $ —

Interest rate collars Other Liabilities 450,000 5,971 250,000 746

3 unchanged sentences

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

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).”

There were no ineffective portions for the nine months ended September 30, 2023 or 2022.

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

Derivatives designated as fair value hedges

5 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Balance Sheet June 30, 2023 December 31, 2022

Balance Sheet September 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 June 30, Six Months Ended June 30,

Income Statement Three Months Ended September 30, Nine Months Ended September 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 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022

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

Long-term debt $ 76,905 $ 78,881 $ 21,896 $ 19,789

4 unchanged sentences

Offsetting Derivative Assets Offsetting Derivative Liabilities

2023 December 31, 2022 June 30,

September 30,

2023 December 31, 2022 September 30,

2023 December 31, 2022

11 unchanged sentences

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.

June 30, December 31,

September 30, December 31,

Deferred tax assets

18 unchanged sentences

Net deferred tax assets $ 107,082 $ 110,408

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.

For the nine months ended September 30, 2023 and 2022, the Company recorded a provision for income taxes totaling $ 28,722 and $ 32,355 , respectively.

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

36 unchanged sentences

Level 1 Level 2 Level 3 Totals

June 30, 2023

September 30, 2023

Financial assets:

20 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 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.

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

For the nine months ended September 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:

June 30, 2023 Level 1 Level 2 Level 3 Totals

September 30, 2023 Level 1 Level 2 Level 3 Totals

Individually evaluated loans, net of allowance for credit losses $ — $ — $ 30,842 $ 30,842

13 unchanged sentences

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

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.

Individually evaluated loans that were measured or re-measured at fair value had a carrying value of $ 43,648 and $ 18,288 at September 30, 2023 and December 31, 2022, respectively, and a specific reserve for these loans of $ 12,806 and $ 3,556 was included in the allowance for credit losses as of such dates.

Other real estate owned :

7 unchanged sentences

The following table presents OREO measured at fair value on a nonrecurring basis that was still held on the Consolidated Balance Sheets as of the dates presented:

September 30,

2023 December 31, 2022

6 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 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:

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

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

The following table presents information as of September 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 $ 1,133 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.

Net losses of $ 256 and $ 14,537 resulting from fair value changes of these mortgage loans were recorded in income during the nine months ended September 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.

3 unchanged sentences

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 June 30, 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 September 30, 2023 and December 31, 2022:

Renasant Corporation and Subsidiaries

2 unchanged sentences

Balance Difference

June 30, 2023

September 30, 2023

Mortgage loans held for sale measured at fair value $ 241,613 $ 239,907 $ 1,706

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 June 30, 2023 Carrying

As of September 30, 2023 Carrying

Value Level 1 Level 2 Level 3 Total

36 unchanged sentences

(Benefit) Net of Tax

Three months ended June 30, 2023

Three months ended September 30, 2023

Securities available for sale:

Unrealized holding losses on securities $ ( 17,175 ) $ ( 4,292 ) $ ( 12,883 )

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 3,959 1,012 2,947

1 unchanged sentence

Derivative instruments:

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

Unrealized holding gains on derivative instruments 2,670 683 1,987

Total derivative instruments 2,670 683 1,987

2 unchanged sentences

Total defined benefit pension and post-retirement benefit plans 116 30 86

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

Three months ended June 30, 2022

Total other comprehensive loss $ ( 10,430 ) $ ( 2,567 ) $ ( 7,863 )

Three months ended September 30, 2022

Securities available for sale:

13 unchanged sentences

(Benefit) Net of Tax

Six months ended June 30, 2023

Nine months ended September 30, 2023

Securities available for sale:

10 unchanged sentences

Total other comprehensive income $ 13,001 $ 3,288 $ 9,713

Six months ended June 30, 2022

Nine months ended September 30, 2022

Securities available for sale:

Unrealized holding losses on securities $ ( 296,444 ) $ ( 75,445 ) $ ( 220,999 )

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

Amortization of unrealized holding losses on securities transferred to the held to maturity category 1,300 331 969

Total securities available for sale ( 295,144 ) ( 75,114 ) ( 220,030 )

7 unchanged sentences

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

September 30,

2023 December 31, 2022

11 unchanged sentences

Three Months Ended

September 30,

Net income applicable to common stock $ 41,833 $ 46,567

6 unchanged sentences

Net income per common share - diluted $ 0.74 $ 0.83

Six Months Ended

Nine Months Ended

September 30,

Net income applicable to common stock $ 116,554 $ 119,792

8 unchanged sentences

Three Months Ended

September 30,

Number of shares 1,000 9,750

Six Months Ended

Nine Months Ended

September 30,

Number of shares 24,146 19,750

31 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:

June 30, 2023 December 31, 2022

September 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 June 30, 2023, the Company’s CET1 capital was in excess of the capital conservation buffer.

As shown in the table above, as of September 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.

15 unchanged sentences

Management Other Consolidated

Three months ended June 30, 2023

Three months ended September 30, 2023

Net interest income (loss) $ 133,909 $ 456 $ 8 $ ( 6,990 ) $ 127,383

7 unchanged sentences

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

Three months ended June 30, 2022

Three months ended September 30, 2022

Net interest income (loss) $ 134,528 $ 98 $ 794 $ ( 5,102 ) $ 130,318

11 unchanged sentences

Management Other Consolidated

Six months ended June 30, 2023

Nine months ended September 30, 2023

Net interest income (loss) $ 412,066 $ 1,170 $ 56 $ ( 19,918 ) $ 393,374

7 unchanged sentences

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

Six months ended June 30, 2022

Nine months ended September 30, 2022

Net interest income (loss) $ 356,040 $ 286 $ 1,813 $ ( 14,677 ) $ 343,462

8 unchanged sentences

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