What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2024-02-23 compared with 2023-02-24 · 293 added, 310 removed, 2156 unchanged (22% of the section changed)

29 unchanged sentences

Mitchell Waycaster James C.

President and Executive Vice President and

Chief Executive Officer Chief Financial Officer

Chief Executive Officer Executive Vice President and

Chief Financial Officer

February 23, 2024

18 unchanged sentences

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involve especially challenging, subjective or complex judgments.

(1) relates to accounts or disclosures that are material to the financial statements and (2) involves especially challenging, subjective or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

110 unchanged sentences

Provision for (recovery of) credit losses on loans 18,793 23,788 ( 1,700 )

(Recovery of) provision for credit losses on unfunded commitments ( 3,200 ) 83 ( 500 )

Provision for credit losses on held to maturity securities — — 32

Provision for other credit losses — — 1,500

Provision for (recovery of) credit losses 15,593 23,871 ( 2,168 )

Net interest income after provision for credit losses 457,510 425,669 339,947

Net interest income after provision for (recovery of) credit losses 503,734 457,427 426,169

Noninterest income

5 unchanged sentences

Swap termination gains — — 4,676

Net gains on sales of securities — 2,170 46

Gain on debt extinguishment 620 — —

Net (losses) gains on sales of securities ( 22,438 ) — 2,170

Impairment losses on securities ( 19,352 ) — —

BOLI income 10,463 9,267 7,366

12 unchanged sentences

Restructuring charges — 732 368

Swap termination charges — — 2,040

Debt prepayment penalty — — 6,123

16 unchanged sentences

Securities available for sale:

Unrealized holding (losses) gains on securities ( 214,351 ) ( 38,371 ) 20,717

Reclassification adjustment for gains realized in net income — ( 1,618 ) ( 34 )

Unrealized holding gains (losses) on securities 15,128 ( 214,351 ) ( 38,371 )

Reclassification adjustment for losses (gains) realized in net income 31,063 — ( 1,618 )

Amortization of unrealized holding losses (gains) on securities transferred to the held to maturity category 10,091 3,701 ( 54 )

1 unchanged sentence

Derivative instruments:

Unrealized holding gains on derivative instruments 14,993 8,087 688

Reclassification adjustment for (gains) losses realized in net income related to swap termination — ( 3,486 ) 1,521

Unrealized holding (losses) gains on derivative instruments ( 1,905 ) 14,993 8,087

Reclassification adjustment for gains realized in net income related to swap termination — — ( 3,486 )

Total derivative instruments ( 1,905 ) 14,993 4,601

Defined benefit pension and post-retirement benefit plans:

Net (loss) gain arising during the period ( 3,062 ) ( 264 ) 797

Reclassification adjustment for settlement loss related to the voluntary early retirement program realized in net income — — 422

New prior service cost — — ( 362 )

Net gain (loss) arising during the period 60 ( 3,062 ) ( 264 )

Amortization of net actuarial loss recognized in net periodic pension cost 344 125 195

Amortization of prior service cost — — 362

Total defined benefit pension and post-retirement benefit plans 404 ( 2,937 ) ( 69 )

Other comprehensive (loss) income, net of tax ( 198,594 ) ( 35,511 ) 24,304

Comprehensive (loss) income $ ( 32,526 ) $ 140,381 $ 107,955

Other comprehensive income (loss), net of tax 54,781 ( 198,594 ) ( 35,511 )

Comprehensive income (loss) $ 199,459 $ ( 32,526 ) $ 140,381

See Notes to Consolidated Financial Statements.

5 unchanged sentences

Balance at January 1, 2021 56,200,487 $ 296,483 $ ( 101,554 ) $ 1,296,963 $ 615,773 $ 25,068 $ 2,132,733

Cumulative effect adjustment due to the adoption of ASU 2016-13 — — — — ( 35,099 ) — ( 35,099 )

Net income — — — — 175,892 — 175,892

Other comprehensive income — — — — — 24,304 24,304

Other comprehensive loss — — — — — ( 35,511 ) ( 35,511 )

Comprehensive income 140,381

7 unchanged sentences

Other comprehensive loss — — — — — ( 198,594 ) ( 198,594 )

Comprehensive income 140,381

Repurchase of shares in connection with stock repurchase program ( 612,107 ) — ( 21,315 ) — — — ( 21,315 )

Comprehensive loss ( 32,526 )

Cash dividends ($ 0.88 per share)

4 unchanged sentences

Net income — — — — 144,678 — 144,678

Other comprehensive loss — — — — — ( 198,594 ) ( 198,594 )

Comprehensive loss ( 32,526 )

Other comprehensive income — — — — — 54,781 54,781

Comprehensive income 199,459

Cash dividends ($ 0.88 per share)

14 unchanged sentences

Depreciation, amortization and accretion 35,231 42,744 47,350

Deferred income tax expense (benefit) 2,280 11,411 ( 13,662 )

Deferred income tax (benefit) expense ( 5,005 ) 2,280 11,411

Impairment losses on securities 19,352 — —

Proceeds from sale of mortgage servicing rights — 18,525 —

4 unchanged sentences

Valuation adjustment to mortgage servicing rights — — ( 13,561 )

Gains on sales of securities — ( 2,170 ) ( 46 )

Losses (gains) on sales of securities 22,438 — ( 2,170 )

Debt prepayment penalty — — 6,123

(Gains) losses on sales of premises and equipment ( 239 ) ( 840 ) 38

Gain on debt extinguishment ( 620 ) — —

Gains on sales of premises and equipment ( 173 ) ( 239 ) ( 840 )

Stock-based compensation 13,716 11,505 10,074

Increase in other assets ( 51,986 ) ( 29,671 ) ( 20,812 )

(Decrease) increase in other liabilities ( 6,196 ) ( 42,920 ) 27,077

Increase (decrease) in other liabilities 23,998 ( 6,279 ) ( 42,420 )

Net cash provided by operating activities 148,553 574,045 142,659

16 unchanged sentences

Net (decrease) increase in noninterest-bearing deposits ( 975,081 ) ( 159,368 ) 1,033,076

Net (decrease) increase in interest-bearing deposits ( 259,390 ) 813,567 712,781

Net increase (decrease) in short-term borrowings 668,805 ( 7,393 ) ( 467,872 )

Net increase (decrease) in interest-bearing deposits 1,564,900 ( 259,390 ) 813,567

Net (decrease) increase in short-term borrowings ( 404,655 ) 668,805 ( 7,393 )

Proceeds from long-term debt — — 197,061

3 unchanged sentences

Net cash provided by financing activities 132,205 167,639 1,762,106

Net (decrease) increase in cash and cash equivalents ( 1,301,973 ) 1,244,762 218,273

Net increase (decrease) in cash and cash equivalents 225,359 ( 1,301,973 ) 1,244,762

Cash and cash equivalents at beginning of year 575,992 1,877,965 633,203

39 unchanged sentences

Such amortization and accretion is included in interest income from securities, as is dividend income.

Realized gains and losses on sales of securities are reflected under the line item “Net gains on sales of securities” on the Consolidated Statements of Income.

Realized gains and losses on sales of securities and impairments are reflected under the line items “Net (losses) gains on sales of securities” and “Impairment losses on securities” on the Consolidated Statements of Income.

The cost of securities sold is based on the specific identification method.

14 unchanged sentences

each is calculated as the difference between the estimate of discounted future cash flows and the amortized cost basis of the security.

A number of qualitative and quantitative factors, including the financial condition of the underlying issuer and current and projected deferrals or defaults, are considered by management in the estimate of the discounted future cash flows.

The remaining difference between the fair value and the amortized cost basis of the security is considered the amount related to other market factors and is recognized in other comprehensive income, net of applicable taxes.

A number of qualitative and quantitative factors, including the financial condition of the underlying issuer, current and projected deferrals or defaults and credit ratings by nationally recognized statistical rating agencies are considered by management in the estimate of the

Renasant Corporation and Subsidiaries

1 unchanged sentence

Note 1 – Significant Accounting Policies (continued)

discounted future cash flows.

Recognition of interest is discontinued on debt securities that are transferred to nonaccrual status.

16 unchanged sentences

Upon collection of the receivable and settlement of any client obligation, the client reserves are returned to the client.

Factoring receivables, net of client receivables, are reported as “Loans” on the Consolidated Balance Sheets.

Factoring receivables, net of client reserves, are reported as “Loans” on the Consolidated Balance Sheets (this includes arrangements where the Company does not directly collect the receivables of the client’s account customers).

Factoring fees are reported as interest income on loans while other fees generated from factoring relationships are reported as noninterest income on the Consolidated Statements of Income.

18 unchanged sentences

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 implemented in response to the COVID-19 pandemic of $ 1,244 and $ 1,248 , respectively, as of December 31, 2023 and 2022.

Restructured loans are those for which concessions have been granted to the borrower due to a deterioration of the borrower’s financial condition and are performing in accordance with the new terms.

Such concessions may include reduction in interest rates or deferral of interest or principal payments.

In evaluating whether to restructure a loan, management analyzes the long-term financial condition of the borrower, including guarantor and collateral support, to determine whether the proposed

Renasant Corporation and Subsidiaries

1 unchanged sentence

Note 1 – Significant Accounting Policies (continued)

concessions will increase the likelihood of repayment of principal and interest.

Restructured loans that are not performing in accordance with their restructured terms that are either contractually 90 days past due or have been placed on nonaccrual status are reported as nonperforming loans.

The allowance for credit losses is an estimate of expected losses inherent within the Company’s loans held for investment portfolio and is maintained at a level believed adequate by management to absorb credit losses inherent in such loan portfolio in accordance with ASC 326.

1 unchanged sentence

Expected credit loss inherent in non-cancellable off-balance-sheet credit exposures is accounted for as a separate liability in the Consolidated Balance Sheets.

The allowance for credit losses for loans held for investment, as reported in the Company’s Consolidated Balance Sheets, is adjusted by a provision for credit losses, which is reported in earnings, and reduced by net charge-offs.

Loan losses are charged against the allowance for credit losses when management believes the uncollectability of a loan balance is confirmed.

The allowance for credit losses on loans held for investment, as reported in the Company’s Consolidated Balance Sheets, is adjusted by a provision for credit losses, which is reported in earnings, and reduced by net charge-offs.

Loan losses are charged against the allowance for credit losses when management confirms the uncollectability of a loan balance.

Subsequent recoveries, if any, are credited to the allowance.

20 unchanged sentences

The source of repayment of a construction loan comes from the sale or lease of newly-constructed property, although often construction loans are repaid with the proceeds of a commercial real estate loan that the Company makes to the owner or lessor of the newly-constructed property.

Real Estate - 1-4 Family Mortgage - This segment of the Company’s loan portfolio includes loans secured by first or second liens on residential real estate in which the property is the principal residence of the borrower, as well as loans secured by residential real estate in which the property is rented to tenants or is otherwise not the principal residence of the borrower;

loans for the preparation of residential real property prior to construction are also included in this segment.

Finally, this segment

Renasant Corporation and Subsidiaries

1 unchanged sentence

Note 1 – Significant Accounting Policies (continued)

loans for the preparation of residential real property prior to construction are also included in this segment.

Finally, this segment includes home equity loans or lines of credit and term loans secured by first and second mortgages on the residences of borrowers who elect to use the accumulated equity in their homes for purchases, refinances, home improvements, education and other personal expenditures.

includes home equity loans or lines of credit and term loans secured by first and second mortgages on the residences of borrowers who elect to use the accumulated equity in their homes for purchases, refinances, home improvements, education and other personal expenditures.

The Company attempts to minimize the risk associated with residential real estate loans by scrutinizing the financial condition of the borrower;

21 unchanged sentences

The Company uses two CECL models:

(1) a loss rate model, based on average historical life-of-loan loss rates, which is used for the Real Estate - 1-4 Family Mortgage, Real Estate - Construction and the Installment Loans to Individuals portfolio segments, and (2) for the C&I, Real Estate - Commercial Mortgage and Lease Financing portfolio segments, the Company uses a probability of default/loss given default model, which calculates an expected loss percentage for each loan pool by considering (a) the probability of default, based on the migration of loans from performing (using risk ratings) to default using life-of-loan analysis periods, and (b) the historical severity of loss, based on the aggregate net lifetime losses incurred per loan pool.

(1) a loss rate model, based on average historical life-of-loan loss rates, which is used for the Real Estate - 1-4 Family Mortgage, Real Estate - Construction and the consumer loans portfolio segments, and (2) for the Commercial, Real Estate - Commercial Mortgage and Lease Financing portfolio segments, the Company uses a probability of default/loss given default model, which calculates an expected loss percentage for each loan pool by considering (a) the probability of default, based on the migration of loans from performing (using risk ratings) to default using life-of-loan analysis periods, and (b) the historical severity of loss, based on the aggregate net lifetime losses incurred per loan pool.

The historical loss rates calculated as described above are adjusted, as necessary, for both internal and external qualitative factors where there are differences in the historical loss data of the Company and current or projected future conditions.

2 unchanged sentences

These factors are used to adjust the historical loss rates (as described above) to ensure that they reflect management’s expectation of future conditions based on a reasonable and supportable forecast period.

To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made, when necessary, the models immediately revert back to the historical loss rates adjusted for qualitative factors related to current conditions.

To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made, when necessary, the models immediately revert to the historical loss rates adjusted for qualitative factors related to current conditions.

Renasant Corporation and Subsidiaries

2 unchanged sentences

Loans Evaluated on an Individual Basis

For loans that do not share similar risk characteristics with other loans, an individual analysis is performed to determine the expected credit loss.

If the respective loan is collateral dependent (that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral), the expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral.

For loans that do not share similar risk characteristics with other loans, an analysis of the loan is performed to determine the expected credit loss.

If a respective loan is collateral dependent (that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral), the expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral.

The fair value of collateral is initially based on external appraisals.

6 unchanged sentences

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.

Changes in such allowance are recorded in the “Other noninterest expense” line item on the Consolidated Statements of Income.

Changes in such allowance are recorded in the “Provision for credit losses on unfunded commitments” line item on the Consolidated Statements of Income.

Management estimates the amount of expected losses on unfunded loan commitments by calculating a likelihood of funding over the contractual period for exposures that are not unconditionally cancellable by the Company and applying the loss factors used in the allowance for credit losses on loans methodology described above to unfunded commitments for each loan type.

No credit loss estimate is reported for off-balance-sheet credit exposures that are unconditionally cancellable by the Company.

See Note 3, “Loans,” and Note 4, “Allowance for Credit Losses” for disclosures regarding the Company’s past due and nonaccrual loans, impaired loans and restructured loans and its allowance for credit losses.

See Note 3, “Loans,” and Note 4, “Allowance for Credit Losses” for disclosures regarding the Company’s past due and nonaccrual loans, and its allowance for credit losses.

Business Combinations, Accounting for Purchased Credit Deteriorated Loans and Related Assets :

3 unchanged sentences

For a purchased asset that the Company has the intent of holding for investment, ASC 326 requires the Company to determine whether the asset has experienced more-than-insignificant deterioration in credit quality since origination.

Factors used in the determination will vary but may include delinquency history, historical accrual status, down grades in the risk rating by the seller, among others.

Factors used in the determination will vary but may include delinquency history, historical accrual status, and downgrades in the risk rating by the seller, among others.

The Company's review of an asset during its due diligence evaluation of the purchase may identify other unique attributes that would indicate more-than-insignificant deterioration has occurred such as the borrower's financial condition, credit rating or credit score as well as the value of underlying collateral.

4 unchanged sentences

Non-PCD assets record the Day 1 allowance for credit losses through earnings on the date of purchase.

The Company will accrete or amortize as interest income the fair value discounts on both PCD and non-PCD assets over the life of the asset.

The Company accretes or amortizes as interest income the fair value discounts on both PCD and non-PCD assets over the life of the asset.

Renasant Corporation and Subsidiaries

19 unchanged sentences

Other Real Estate Owned :

Other real estate owned consists of properties acquired through foreclosure or acceptance of a deed in lieu of foreclosure.

These properties are initially recorded into other real estate at fair market value less cost to sell and are subsequently carried at the lower of cost or fair market value based on appraised value less estimated selling costs.

Other real estate owned (“OREO”) consists of properties acquired through foreclosure or acceptance of a deed in lieu of foreclosure.

These properties are initially recorded into other real estate owned at fair market value less cost to sell and are subsequently carried at the lower of cost or fair market value based on appraised value less estimated selling costs.

Losses arising at the time of foreclosure of properties are charged against the allowance for credit losses.

22 unchanged sentences

In determining the fair value of the Company’s reporting units, management uses the market approach.

Other intangible assets, consisting of core deposit intangibles and customer relationship intangibles, are reviewed for events or circumstances which could impact the recoverability of the intangible asset, such as a loss of core deposits, increased competition or adverse changes in the economy.

Other intangible assets, consisting of core deposit intangibles and customer relationship intangibles, are reviewed for events or circumstances that could impact the recoverability of the intangible asset, such as a loss of core deposits, increased competition or adverse changes in the economy.

No impairment was identified for the Company’s goodwill or its other intangible assets as a result of the testing performed during 2023, 2022 or 2021.

41 unchanged sentences

Note 1 – Significant Accounting Policies (continued)

Sales of Other Real Estate Owned (“OREO”)

Sales of OREO

- The Company continually markets the properties included in the OREO portfolio.

25 unchanged sentences

For the Company’s derivatives designated as cash flow hedges, changes in the fair value of 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.

There were no ineffective portions for 2022.

The ineffective portions of the changes in fair value of the hedging instruments are immediately recognized in earnings.

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

There were no ineffective portions for 2023.

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

Fair value hedges are utilized to mitigate the exposure to future interest rate risk.

40 unchanged sentences

Subsequent Events:

The Company has evaluated, for consideration of recognition or disclosure, subsequent events that have occurred through the date of issuance of its financial statements, and has determined that no significant events occurred after December 31, 2022 but prior to the issuance of these financial statements that would have a material impact on its Consolidated Financial Statements.

The Company has evaluated, for consideration of recognition or disclosure, subsequent events that have occurred through the date of issuance of its financial statements.

In January 2024, the Company sold a portion of its available for sale securities portfolio, of which the securities sold were identified prior to December 31, 2023.

The Company impaired the securities sold and recognized the loss in net income as of December 31, 2023.

Other than the forementioned, the Company has determined that no significant events occurred after December 31, 2023 but prior to the issuance of these financial statements that would have a material impact on its Consolidated Financial Statements.

Renasant Corporation and Subsidiaries

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Impact of Recently-Issued Accounting Standards and Pronouncements :

In March 2020, FASB issued ASU 2020-04, “Reference Rate Reform (Topic 842):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides temporary, optional guidance to ease the potential burden of accounting for reference rate reform on financial reporting.

ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions if certain criteria are met that reference the London Interbank Offering Rate (“LIBOR”) or another reference rate expected to be discontinued.

As the guidance is intended to assist stakeholders during the global market-wide reference rate transition period, it was in effect only from March 12, 2020 through December 31, 2022.

The Company transitioned new production from LIBOR instruments to a set of alternative indices at December 31, 2021.

The Company’s LIBOR Transition Committee is currently developing a plan to transition legacy positions with the intent to minimize the impact to the Bank and its customers.

In March 2022, FASB issued 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 disclosures requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.

Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminates the accounting guidance for troubled debt restructurings in ASC Subtopic 310-40, “Receivables - Troubled Debt Restructurings by Creditors,” while enhancing disclosures 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 will have no impact on the Company’s financial statements aside from additional and revised disclosures.

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

See Note 3, “Loans” for the relevant disclosures.

In October 2023, FASB issued ASU 2023-06, “Disclosure Improvements” (“ASU 2023-06”), which amends the disclosure requirements related to various subtopics in the FASB Accounting Standards Codification (the “Codification”).

ASU 2023-06 adds a number of disclosure requirements to the Codification in response to the Securities and Exchange Commission (“SEC”) initiative to update and simplify disclosure requirements.

ASU 2023-06 is to be applied prospectively, and early adoption is prohibited.

For SEC reporting entities, the effective dates will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective.

If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entities.

ASU 202-06 is not expected to have significant impact on our financial statements.

In November 2023, FASB issued ASU 2023-07, “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which amends the disclosure requirements related to segment reporting primarily through enhanced disclosure about significant segment expenses and by requiring disclosure of segment information on an annual and interim basis.

ASU 2023-07 is effective January 1, 2024 and is not expected to have a significant impact on our financial statements.

In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures” (“ASU 2023-09”), which enhances the transparency and decision usefulness of income tax disclosures.

ASU 2023-09 will require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

Entities will also be required to disclose income/(loss) from continuing operations before income tax expense/(benefit) disaggregated between domestic and foreign, as well as income tax expense/(benefit) from continuing operations disaggregated by federal, state and foreign.

ASU 202-09 is effective January 1, 2025 and is not expected to have a significant impact on our financial statements.

Renasant Corporation and Subsidiaries

4 unchanged sentences

December 31, 2023

Obligations of other U.S.

Government agencies and corporations $ 170,000 $ — $ ( 5,340 ) $ 164,660

Obligations of states and political subdivisions $ 36,374 $ 119 $ ( 1,883 ) $ 34,610

8 unchanged sentences

December 31, 2022

Treasury securities $ 3,007 $ 3 $ — $ 3,010

Obligations of other U.S.

Government agencies and corporations $ 170,000 $ — $ ( 5,340 ) $ 164,660

Obligations of states and political subdivisions 154,066 204 ( 9,368 ) 144,902

35 unchanged sentences

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

During the year ended December 31, 2022, the Company transferred, at fair value, $ 882,927 of securities from the available for sale portfolio to the held to maturity portfolio.

The related net unrealized loss of $ 99,675 (after tax loss of $ 74,307 ) remained in accumulated other comprehensive income (loss) and will be amortized over the remaining life of the securities, offsetting the related amortization of discount on the transferred securities.

No gains or losses were recognized at the time of transfer.

Renasant Corporation and Subsidiaries

1 unchanged sentence

Note 2 – Securities (continued)

Available for sale securities sold were as follows for the years ended December 31, 2023 and 2021.

There were no available for sale securities sold during the year ended December 31, 2022.

Available for sale securities sold were as follows for the periods presented:

Carrying Value Net Proceeds Gain/(Loss)

Twelve months ended December 31, 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 )

2 unchanged sentences

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

Trust preferred securities 12,021 9,961 ( 2,060 )

Other debt securities 4,283 4,410 127

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 )

5 unchanged sentences

Government agency collateralized mortgage obligations 12,362 12,562 200

Trust preferred securities 12,021 9,961 ( 2,060 )

Other debt securities 4,283 4,410 127

$ 174,285 $ 176,455 $ 2,170

1 unchanged sentence

Year Ended December 31,

2023 2022 2021

Gross gains on sales of securities available for sale $ 126 $ — $ 4,322

Gross losses on sales of securities available for sale ( 22,564 ) — ( 2,152 )

Gains on sales of securities available for sale, net $ 2,170 $ 46

At December 31, 2022 and 2021, securities with a carrying value of approximately $ 824,417 and $ 607,681 , respectively, were pledged to secure government, public, trust, and other deposits.

Securities with a carrying value of $ 18,184 and $ 21,493 were pledged as collateral for short-term borrowings and derivative instruments at December 31, 2022 and 2021, respectively.

(Losses) gains on sales of securities available for sale, net $ ( 22,438 ) $ — $ 2,170

The Company intended to sell a portion of its available for sale securities as of December 31, 2023, and thereafter completed the sale in January 2024.

Therefore, the Company impaired the securities identified to be sold by reducing the amortized cost of each respective security by the amount of impairment and recognized the loss in net income as of December 31, 2023.

The impairment recognized by security type is listed in the table below.

Carrying Value Impairment

Twelve months ended December 31, 2023

Obligations of states and political subdivisions $ 11,227 $ 941

Residential mortgage-backed securities:

Government agency mortgage-backed securities 97,526 11,467

Government agency collateralized mortgage obligations 44,708 4,310

Commercial mortgage-backed securities:

Government agency collateralized mortgage obligations 25,916 2,634

$ 179,377 $ 19,352

Renasant Corporation and Subsidiaries

1 unchanged sentence

Note 2 – Securities (continued)

At December 31, 2023 and 2022, securities with a carrying value of approximately $ 880,715 and $ 824,417 , respectively, were pledged to secure government, public, trust, and other deposits.

Securities with a carrying value of $ 14,329 and $ 18,184 were pledged as collateral for short-term borrowings and derivative instruments at December 31, 2023 and 2022, respectively.

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

26 unchanged sentences

December 31, 2023

Obligations of other U.S.

Government agencies and corporations 5 $ 164,660 $ ( 5,340 ) — $ — $ — 5 $ 164,660 $ ( 5,340 )

Obligations of states and political subdivisions 3 $ 2,914 $ ( 2 ) 9 $ 15,198 $ ( 1,881 ) 12 $ 18,112 $ ( 1,883 )

8 unchanged sentences

December 31, 2022

Obligations of other U.S.

Government agencies and corporations 5 $ 164,660 $ ( 5,340 ) — $ — $ — 5 $ 164,660 $ ( 5,340 )

Obligations of states and political subdivisions 84 96,939 ( 4,869 ) 11 33,038 ( 4,499 ) 95 129,977 ( 9,368 )

29 unchanged sentences

Commercial mortgage-backed securities:

Government agency mortgage-backed securities 1 13,745 ( 3,261 ) — — — 1 13,745 ( 3,261 )

Government agency collateralized mortgage obligations 2 7,651 ( 626 ) 7 31,220 ( 5,932 ) 9 38,871 ( 6,558 )

1 unchanged sentence

Total 122 $ 448,575 $ ( 51,435 ) 115 $ 755,527 $ ( 66,112 ) 237 $ 1,204,102 $ ( 117,547 )

The Company does not intend to sell any of the 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 maturity.

Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period greater 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 December 31, 2022, the Company determined that all such losses resulted from factors not deemed credit related.

As a result, the Company did not record any impairment for the years ended December 31, 2022 and 2021.

Other than the previously disclosed sale, the Company does not intend to sell any of the 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 maturity.

Furthermore, more than 90 % of available for sale securities have the explicit or implicit backing of the United States government.

Performance of these securities has been in line with broader market price performance indicating that increases in market-based, risk free rates, and not credit-related factors, are driving losses.

For municipal and corporate securities, the Company considers historical experience with credit sensitive securities, current market conditions, the financial health of the issuer, current credit ratings, ratings changes and outlook, explicit and implicit guarantees, or insurance programs when determining the fair value of the contractual cash flows.

Based on its review of these factors as of December 31, 2023, the Company determined that all such losses resulted from factors not deemed credit related.

As a result, no credit-related impairment was recognized in current earnings, and all unrealized losses for available for sale securities were recorded in Other Comprehensive Income.

At each of December 31, 2023 and 2022, the allowance for credit losses on held to maturity securities was $ 32 .

2 unchanged sentences

On December 31, 2023, 100 % of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies.

As such, no additional credit loss was recorded for held to maturity securities.

Renasant Corporation and Subsidiaries

86 unchanged sentences

Loans, net of unearned income $ 58,703 $ 331 $ 11,462,725 $ 11,521,759 $ 13,386 $ 18,381 $ 24,778 $ 56,545 $ 11,578,304

There were no restructured loans that were contractually 90 days past due or more and still accruing at December 31, 2022.

There was one restructured loan totaling $ 36 that was contractually 90 days past due or more and still accruing at December 31, 2021.

The outstanding balance of restructured loans on nonaccrual status was $ 20,765 and $ 25,702 at December 31, 2022 and 2021, respectively.

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 (including an extension of the amortization period), 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 December 31, 2023, modifications meeting the disclosure criteria in ASU 2022-02 that were performing in accordance with their modified terms, including unused commitments, totaled $ 3,115 .

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.

Renasant Corporation and Subsidiaries

1 unchanged sentence

Note 3 – Loans (continued)

Restructured Loans

At December 31, 2022, 2021 and 2020, there were $ 22,624 , $ 20,259 and $ 20,448 , respectively, of restructured loans.

The following table illustrates the impact of modifications classified as restructured loans held on the Consolidated Balance Sheets and still performing in accordance with their restructured terms at period end, segregated by class, as of the periods presented.

Loans Pre-Modification

Amortized Cost Post-Modification

Outstanding Amortized Cost

December 31, 2022

The following table presents the amortized cost basis of loans that were experiencing financial difficulty, modified during the year ended December 31, 2023 and required to be disclosed under ASU 2022-02, by class and by type of modification.

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.

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

Commercial, financial, agricultural $ — $ 1,339 $ 220 $ — $ — $ — $ 1,559 0.08 %

Lease financing — — — — — — — —

Real estate – construction:

Residential — 3,018 — — — — 3,018 1.12

Commercial — — — — — — — —

Total real estate – construction — 3,018 — — — — 3,018 0.23

Real estate – 1-4 family mortgage:

Primary 218 31 786 85 153 — 1,273 0.05

Home equity 18 14 — — — — 32 0.01

Rental/investment — 235 16 — — — 251 0.07

Land development — — — — — — — —

4 unchanged sentences

Total real estate – commercial mortgage 12,539 14,730 — — 15,323 — 42,592 0.78

Total 26 $ 10,018 $ 10,040

December 31, 2021

Commercial, financial, agricultural 8 $ 5,393 $ 5,393

Real estate – 1-4 family mortgage:

Primary 36 6,061 6,108

Real estate – commercial mortgage:

Non-owner occupied 1 837 810

Total 45 $ 12,291 $ 12,311

December 31, 2020

Installment loans to individuals — — 22 — 6 20 48 0.05

Loans, net of unearned income $ 12,775 $ 19,367 $ 1,044 $ 85 $ 15,482 $ 20 $ 48,773 0.39 %

The following table presents the weighted average financial effect of loan modifications requiring disclosure under ASU 2022-02 by class of financing receivable for which there was one type of modifications for the year ended December 31, 2023.

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

Commercial, financial, agricultural — 5.0 31.3

Real estate – construction:

Residential — 4.7 —

Real estate – 1-4 family mortgage:

2 unchanged sentences

Rental/investment — 7.2 17.0

Total real estate – 1-4 family mortgage 28 4,229 4,255

Real estate – commercial mortgage:

1 unchanged sentence

Non-owner occupied 12 7.9 —

Land development 1 189 189

Total real estate – commercial mortgage 12 7,133 6,826

Installment loans to individuals — — 12.0

Total 51 $ 14,302 $ 14,011

At December 31, 2022, 2021 and 2020, the Company had $ 491 , $ 117 and $ 522 , respectively, in troubled debt restructurings that subsequently defaulted within twelve months of the restructuring.

In addition to the financial effect of loan modifications shown above, several loans experienced more than one type of modification for the year ended December 31, 2023.

For loans experiencing an interest rate reduction and a payment delay, the weighted average payment was delayed 43.0 months and the weighted average interest rate was reduced by 25 basis points.

For loans experiencing an interest rate reduction and a term extension, the weighted average term extension was 12.0 months and the weighted average interest rate reduction was 115 basis points.

For real estate - commercial mortgage loans which experienced both a term extension and a payment delay, the weighted average payment delay was 8.0 months and the term

Renasant Corporation and Subsidiaries

1 unchanged sentence

Note 3 – Loans (continued)

Changes in the Company’s restructured loans are set forth in the table below.

Loans Amortized Cost

Totals at December 31, 2020 124 $ 20,448

Additional loans with concessions 45 12,639

Reclassified as performing 6 366

Reductions due to:

Reclassified as nonperforming ( 18 ) ( 4,390 )

Paid in full ( 21 ) ( 7,586 )

Charge-offs ( 1 ) ( 205 )

Principal paydowns — ( 1,013 )

Totals at December 31, 2021 135 $ 20,259

Additional loans with concessions 24 10,332

Reclassified as performing 12 5,326

Reductions due to:

Reclassified as nonperforming ( 28 ) ( 7,411 )

Paid in full ( 23 ) ( 4,758 )

Principal paydowns — ( 1,124 )

Totals at December 31, 2022 120 $ 22,624

The allocated allowance for credit losses attributable to restructured loans was $ 625 and $ 389 at December 31, 2022 and 2021, respectively.

The Company had no remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2022 and $ 307 in remaining availability at December 31, 2021.

extension was 10.0 months.

The weighted average payment delay and term extension for real estate - 1-4 family mortgage:

primary was 117.0 months.

Credit Quality

13 unchanged sentences

Substandard 697 651 623 829 226 6,058 11,596 39 20,719

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 3 – Loans (continued)

Term Loans Amortized Cost Basis by Origination Year

2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total

Lease Financing Receivables $ 32,842 $ 49,628 $ 12,317 $ 13,553 $ 5,969 $ 1,700 $ — $ — $ 116,009

22 unchanged sentences

Pass 89,135 128,939 74,330 35,388 16,670 18,109 4,678 583 367,832

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 3 – Loans (continued)

Term Loans Amortized Cost Basis by Origination Year

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

Special Mention 63 47 256 4 50 42 — — 462

17 unchanged sentences

Substandard 58 295 206 141 18 240 32 — 990

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 3 – Loans (continued)

Term Loans Amortized Cost Basis by Origination Year

2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total

Installment loans to individuals $ — $ — $ — $ — $ 3 $ — $ — $ — $ 3

13 unchanged sentences

Substandard 9,326 384 68 411 2,458 7,128 1,315 1,058 22,148

Lease Financing Receivables $ 61,424 $ 18,379 $ 18,318 $ 10,628 $ 4,557 $ 1,707 $ — $ — $ 115,013

Pass 58,204 18,379 15,846 9,060 3,269 1,353 — — 106,111

Watch — — — — — 354 — — 354

Substandard 3,220 — 2,472 1,568 1,288 — — — 8,548

Real Estate - Construction $ 595,185 $ 476,190 $ 109,705 $ 8,525 $ 381 $ 6,858 $ 13,757 $ 424 $ 1,211,025

Residential $ 214,386 $ 16,483 $ 589 $ — $ 381 $ — $ 3,925 $ 424 $ 236,188

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 3 – Loans (continued)

Term Loans Amortized Cost Basis by Origination Year

2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total

Pass 214,371 16,483 589 — 381 — 3,925 424 236,173

18 unchanged sentences

Substandard 113 189 452 900 114 1,375 — 305 3,448

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 3 – Loans (continued)

Term Loans Amortized Cost Basis by Origination Year

2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total

Land Development $ 81,740 $ 46,203 $ 1,529 $ 194 $ 6,292 $ 2,773 $ 1,532 $ 204 $ 140,467

21 unchanged sentences

Pass 2,945,114 1,831,620 1,025,563 608,367 305,463 777,311 859,244 19,242 8,371,924

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 3 – Loans (continued)

Term Loans Amortized Cost Basis by Origination Year

2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total

Special Mention 12,328 3,087 1,825 24,014 18,187 10,226 16,424 80 86,171

14 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 3 – Loans (continued)

Term Loans Amortized Cost Basis by Origination Year

2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total

Commercial $ — $ — $ — $ — $ — $ — $ — $ — $ —

21 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 3 – Loans (continued)

Term Loans Amortized Cost Basis by Origination Year

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

Land Development $ 3,640 $ 2,674 $ 3,054 $ 1,739 $ 902 $ 312 $ — $ — $ 12,321

58 unchanged sentences

Note 3 – Loans (continued)

The following table discloses gross charge-offs by year of origination for the year ended December 31, 2023:

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

Commercial, financial, agricultural $ 898 $ 1,909 $ 235 $ 131 $ 635 $ 4,165 $ 865 $ — $ 8,838

Lease financing 883 273 248 72 48 — — — 1,524

Real estate – construction:

Residential — 57 — — — — — — 57

Commercial — — — — — — — — —

Total real estate – construction — $ 57 — — — — — — $ 57

Real estate – 1-4 family mortgage:

Primary — 17 — — — 92 — — 109

Home equity — — — — 25 90 — — 115

Rental/investment — — 91 72 10 20 — — 193

Total real estate – 1-4 family mortgage — $ 17 $ 91 $ 72 $ 35 $ 202 — — $ 417

Real estate – commercial mortgage:

Owner-occupied — — — — — 582 — — 582

Non-owner occupied — — — — — 4,986 — — 4,986

Total real estate – commercial mortgage — — — — — $ 5,568 — — $ 5,568

Installment loans to individuals $ 29 $ 45 $ 43 $ 35 $ 7 $ 2,477 — — $ 2,636

Loans, net of unearned income $ 1,810 $ 2,301 $ 617 $ 310 $ 725 $ 12,412 $ 865 $ — $ 19,040

Related Party Loans

5 unchanged sentences

Payments received ( 216 )

Changes in related parties ( 28,012 )

Loans at December 31, 2023

No related party loans were classified as past due, nonaccrual, impaired or restructured at December 31, 2022 or 2021.

The change in related parties in the table above relates to the retirement of a director in April 2023, after which he was no longer considered a related party.

No related party loans were classified as past due or nonaccrual at December 31, 2023 or 2022.

Unfunded commitments to certain executive officers and directors and their associates totaled $ 5,641 and $ 7,387 at December 31, 2023 and 2022, respectively.

During 2022, the Company acquired Southeastern Commercial Finance, LLC and Continental Republic Capital, LLC (doing business as “Republic Business Credit”).

During 2022, the Company acquired Southeastern Commercial Finance, LLC and Republic Business Credit.

The acquired loans were added to the commercial, financial, and agricultural loan category at their fair value of $ 105,610 at the date of acquisition.

41 unchanged sentences

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

Impact of PCD loans acquired during the period 11,460 — — — — — 11,460

Charge-offs ( 5,120 ) — ( 757 ) ( 5,134 ) ( 7 ) ( 3,167 ) ( 14,185 )

12 unchanged sentences

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

While credit metrics remained relatively stable, loan growth and acquisitions caused the Company’s allowance model to indicate that an increase to the allowance for credit losses was appropriate during 2022.

While credit metrics remained relatively stable, loan growth caused the Company’s allowance model to indicate that an increase to the allowance for credit losses was appropriate during 2023.

Allowance for Credit Losses on Unfunded Loan Commitments

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

The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments included in other liabilities in the Consolidated Balance Sheets for the periods presented.

Allowance for credit losses on unfunded loan commitments:

Beginning balance $ 20,118 $ 20,035

Provision for (recovery of) credit losses on unfunded loan commitments (included in other noninterest expense) 83 ( 500 )

(Recovery of) provision for credit losses on unfunded loan commitments ( 3,200 ) 83

Ending balance $ 16,918 $ 20,118

16 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:

December 31, 2022

Residential real estate $ 699

Commercial real estate 62

Residential land development 246

Commercial land development 756

Total $ 1,763

December 31, 2021

December 31, 2023 December 31, 2022

Residential real estate $ 1,211 $ 699

3 unchanged sentences

Total $ 9,622 $ 1,763

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 6 – Other Real Estate Owned (continued)

Changes in the Company’s OREO were as follows for the periods presented:

3 unchanged sentences

Dispositions ( 2,875 )

Other ( 140 )

Balance at December 31, 2022 $ 1,763

3 unchanged sentences

Balance at December 31, 2023 $ 9,622

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 6 – Other Real Estate Owned (continued)

At December 31, 2023 and 2022, the amortized cost of loans secured by Real Estate - 1-4 Family Mortgage in the process of foreclosure was $ 395 and $ 375 , respectively.

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

Year Ended December 31,

2023 2022 2021

10 unchanged sentences

Balance at December 31, 2021 $ 936,916 $ 2,767 $ 939,683

Additions to goodwill and other adjustments — — —

Balance at December 31, 2021 $ 936,916 $ 2,767 $ 939,683

Additions to goodwill from the Southeastern Commercial Finance, LLC acquisition 6,608 — 6,608

1 unchanged sentence

Balance at December 31, 2022 $ 988,941 $ 2,767 $ 991,708

Measurement period adjustments to goodwill from the Continental Republic Capital, LLC acquisition ( 43 ) — ( 43 )

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

Renasant Corporation and Subsidiaries

26 unchanged sentences

Carrying Value at January 1, 2022 $ 89,018

Sale of MSRs ( 15,565 )

Capitalization 22,788

Amortization ( 11,793 )

Valuation adjustment 13,561

Carrying Value at December 31, 2022 $ 84,448

Sale of MSRs ( 15,565 )

Capitalization 17,079

1 unchanged sentence

Carrying Value at December 31, 2023 $ 91,688

The valuation adjustments reflected in the table above as well as any gains recognized on the sale of MSRs are included in “Mortgage banking income” in the Consolidated Statements of Income.

The movement of mortgage interest rates has an inverse relationship with prepayment speeds and discount rates.

The gains recognized on the sale of MSRs are included in “Mortgage banking income” in the Consolidated Statements of Income.

During 2022, the Company sold a portion of its MSR portfolio with a carrying value of $ 15,565 for a pretax gain of $ 2,960 .

The Company recognized a gain of $ 547 in 2023 related to a holdback of those previously sold MSR assets.

Renasant Corporation and Subsidiaries

13 unchanged sentences

Weighted-average remaining maturity (in years) 7.50 8.33 6.69

The movement of mortgage interest rates has an inverse relationship with prepayment speeds and discount rates.

The Company recorded servicing fees of $ 18,081 , $ 18,452 and $ 17,968 , for the twelve months ended December 31, 2023, 2022 and 2021, respectively.

9 unchanged sentences

Total deposits $ 14,076,785 $ 13,486,966

(1) Includes brokered deposits in the amount of $ 233,133 for 2022.

(1) Includes brokered deposits in the amount of $ 461,441 and $ 233,133 for 2023 and 2022, respectively.

The approximate scheduled maturities of time deposits, including brokered deposits, at December 31, 2023 are as follows:

18 unchanged sentences

The terms of the Company’s repurchase agreements are continuous but may be canceled at any time by the Company or the customer.

Federal funds, of which there were none at December 31, 2022 and 2021, are short term borrowings, generally overnight borrowings, between financial institutions that are generally used to maintain reserve requirements at the Federal Reserve Bank or elsewhere.

FHLB short-term advances are borrowings with original maturities of less than one year.

In connection with the prepayment of $ 430,000 in short-term advances from the FHLB during 2020, the Company incurred penalty charges of $ 121 which is included in the line item “Debt prepayment penalty” in the Consolidated Statements of Income.

The Company did no t prepay any outstanding short-term advances from the FHLB in 2022 and 2021.

Federal funds purchased, of which there were none outstanding at December 31, 2023 and 2022, are short term borrowings, generally overnight borrowings, between financial institutions that are generally used to maintain reserve requirements at the Federal Reserve Bank or elsewhere.

Short-term borrowings from the FHLB (i.e.

advances with original maturities of less than one year) are used to meet day to day liquidity needs.

The Company had availability on unused lines of credit with the FHLB of $ 2,922,315 at December 31, 2023.

16 unchanged sentences

Total long-term debt $ 429,400 $ 428,133

Federal Home Loan Bank Advances

Long-term FHLB borrowings, of which none were outstanding at December 31, 2023 and 2022, are used to match fund fixed rate loans in order to minimize interest rate risk and also are used to meet day to day liquidity needs, particularly when the cost

Renasant Corporation and Subsidiaries

1 unchanged sentence

Note 11 – Long-Term Debt (continued)

Federal Home Loan Bank Advances

of such borrowings compares favorably to the rates required to attract deposits.

The Company did not prepay any outstanding long-term advances from the FHLB during 2023 and 2022.

7 unchanged sentences

The Company has entered into an agreement which fully and unconditionally guarantees the capital securities of each trust subject to the terms of the guarantee.

The interest rate on the debentures reprices quarterly equal to the three-month LIBOR at the determination date plus the applicable spread.

The interest rate on the debentures reprices quarterly equal to the three-month CME Term SOFR at the determination date plus the applicable spread.

The debentures owned by the respective trusts are currently redeemable at par.

12 unchanged sentences

Total $ 112,978 $ 109,388

The Company has entered into interest rate swap agreements on the PHC Statutory Trust I, Capital Bancorp Capital Trust I, and First M&F Statutory Trust I pursuant to which the Company received an amount approximately equal to the interest paid on the debentures and paid a fixed rate of interest equal to 5.49 %, 4.42 %, and 4.18 %, respectively, at December 31, 2022.

The Company has classified $ 108,450 of the debentures described in the above paragraphs as Tier 1 capital.

The Company has entered into an interest rate swap agreement on the First M&F Statutory Trust I pursuant to which the Company received an amount approximately equal to the interest paid on the debentures and paid a fixed rate of interest equal to 4.18 % at December 31, 2023.

Federal Reserve guidelines limit the amount of securities that, similar to the Company’s junior subordinated debentures, are includable in Tier 1 capital, but these guidelines did not impact the amount of debentures the Company includes in Tier 1 capital.

Although the Company’s existing junior subordinated debentures are currently unaffected by these Federal Reserve guidelines, on account of changes enacted as part of the Dodd-Frank Act, any new trust preferred securities are not includable in Tier 1 capital.

Further, if the Company makes any acquisition now that it exceeds $ 15,000,000 in assets, the Company will lose Tier 1 treatment of our junior subordinated debentures.

For more information about the Company’s derivative financial instruments, see Note 13, “Derivative Instruments.”

Subordinated notes

During October and December 2021, respectively, the Company redeemed at par its $ 15,000 6.50 % fixed-to-floating rate subordinated notes and redeemed $ 30,000 of its aggregate $ 60,000 5.00 % fixed-to-floating rate subordinated notes, with the remaining $ 30,000 of such notes redeemed in the first quarter of 2022.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 11 – Long-Term Debt (continued)

The Company has issued and sold fixed-to-floating rate subordinated notes (referred to collectively as the “Notes”) in underwritten public offerings at a price equal to 100 % of the aggregate principal amounts of the Notes.

1 unchanged sentence

A summary of the Notes is as follows:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 11 – Long-Term Debt (continued)

Issue Date Initial principal Fixed rate Fixed to floating transition date Benchmark rate Spread (in bps) Debt outstanding Maturity

August 22, 2016 $ 40,000 5.50 % September 1, 2026 3-month LIBOR 407.1 $ 40,000 September 1, 2031

September 3, 2020 $ 100,000 4.50 % September 15, 2030 3-month SOFR 402.5 $ 100,000 September 15, 2035

November 23, 2021 $ 200,000 3.00 % December 1, 2026 3-month SOFR 191 $ 200,000 December 1, 2031

August 22, 2016 $ 40,000 5.50 % September 1, 2026 3-month CME Term SOFR 407.1 $ 40,000 September 1, 2031

September 3, 2020 $ 100,000 4.50 % September 15, 2030 3-month CME Term SOFR 402.5 $ 100,000 September 15, 2035

November 23, 2021 $ 200,000 3.00 % December 1, 2026 3-month CME Term SOFR 191 $ 196,700 December 1, 2031

Debt issuance costs and fair value adjustment ( 20,278 )

8 unchanged sentences

There is no sinking fund for the benefit of the Notes, and none of the Notes are convertible or exchangeable.

During 2023, the Company purchased and subsequently extinguished $ 3,300 of its aggregate $ 200,000 fixed-to-floating subordinated notes and realized a gain of $ 620 .

The aggregate stated maturities of long-term debt outstanding at December 31, 2023, are summarized as follows:

24 unchanged sentences

Increasing or decreasing the assumed health care cost trend rates by one percentage point in each year would not materially increase or decrease the accumulated post-retirement benefit obligation or the service and interest cost components of net periodic post-retirement benefit costs as of December 31, 2023 and for the year then ended.

In 2020, the Company offered a voluntary early retirement program (referred to as the “VERP”) to eligible employees.

Among other items, participants in the VERP received accelerated payouts from the Company’s defined benefit pension plan, retiree medical benefits on terms substantially identical to those applicable to other retirees, and other cash payments.

Cash payments are a noninterest expense and are included in the “Restructuring charges” line item on the Consolidated Statements of Income.

The following table presents information relating to the defined benefit pension plan maintained by Renasant Bank (“Pension Benefits - Renasant”) and the post-retirement health and life plan (“Other Benefits”) as of December 31, 2023 and 2022:

8 unchanged sentences

Benefits paid ( 2,104 ) ( 1,819 ) ( 90 ) ( 88 )

( 1,819 ) ( 2,013 ) ( 88 ) ( 383 )

Benefit obligation at end of year $ 20,195 $ 21,230 $ 512 $ 551

8 unchanged sentences

Discount rate used to determine the benefit obligation 4.74 % 4.94 % 4.53 % 4.74 %

(1) Attributable to retiree medical benefits.

The discount rate assumptions at December 31, 2023 were determined using a yield curve approach.

10 unchanged sentences

Expected return on plan assets ( 1,236 ) ( 1,684 ) ( 1,768 ) — — —

Prior service cost recognized (1)

— — — — — 485

Recognized actuarial loss (gain) 523 243 265 ( 61 ) ( 76 ) ( 3 )

Settlement/curtailment/termination losses (1)

— — 567 — — —

Net periodic benefit cost 282 ( 703 ) ( 821 ) ( 38 ) ( 60 ) 16

Net actuarial loss (gain) arising during the period 4,155 577 ( 1,090 ) ( 48 ) ( 221 ) 21

Net Settlement/curtailment/termination losses (1)

— — ( 567 ) — — —

New prior service cost (1)

— — — — — 485

Net actuarial (gain) loss arising during the period ( 60 ) 4,155 577 ( 20 ) ( 48 ) ( 221 )

Amortization of net actuarial (loss) gain recognized in net periodic pension cost ( 523 ) ( 243 ) ( 265 ) 61 76 3

Amortization of prior service cost (1)

— — — — — ( 485 )

Total recognized in other comprehensive income ( 583 ) 3,912 312 41 28 ( 218 )

3 unchanged sentences

Expected return on plan assets 6.25 % 5.75 % 6.00 % N/A N/A N/A

(1) Attributable to retiree medical benefits and accelerated defined benefit pension plan payouts provided to VERP participants and, with respect to amounts included in Net periodic benefit cost, included in the “Restructuring charges” line item on the Consolidated Statements of Income.

Future estimated benefit payments under the Renasant defined benefit pension plan and other benefits are as follows:

19 unchanged sentences

Total $ ( 517 ) $ 94

Substantially all of the assets of the Company’s defined benefit pension plan are invested in a collective trust, which in turn invests in other collective or pooled trusts with individual investment mandates.

Approximately 89 % of the pension plan’s assets are invested in a collective trust, which in turn invests in other collective or pooled trusts with individual investment mandates.

The collective trust’s asset allocation is approximately 75 % in growth assets, consisting of interests in trusts invested in equity securities, high yield fixed income securities, and direct real estate investments (approximately 6 % of assets), and approximately 25 % in assets intended to hedge against the volatility arising from interest rate risk, consisting of interests in trusts invested in long duration fixed income securities.

1 unchanged sentence

Management’s investment committee periodically reviews the collective trust’s performance and asset allocation to ensure that the plan’s investment objectives are satisfied and that the investment strategy of the trust has not materially changed.

The remaining 11 % of the pension plan’s assets are managed by Park Place Capital, a wholly owned subsidiary of Renasant Bank.

These assets are invested in large cap securities on which covered call options are written to generate income.

The expected long-term rate of return was estimated using market benchmarks for investment classes applied to the plan’s target asset allocation and was computed using a valuation methodology which projects future returns based on current valuations rather than historical returns.

The fair values of the Company’s defined benefit pension plan assets by category at December 31, 2023 and 2022 are below.

Investments in collective trusts, which are measured at net asset value per share (or “NAV”), consist of trusts that invest primarily in liquid equity and fixed income securities and have a small direct investment in real estate.

Investments in collective trusts consist of trusts that invest primarily in liquid equity and fixed income securities and have a small direct investment in real estate.

There is generally no restriction on redemptions or withdrawals for benefit payments or in the event of plan termination;

5 unchanged sentences

(Level 2) Significant

(Level 3) Measured at NAV Totals

(Level 3) Measured at net asset value per share (“NAV”)

December 31, 2023

1 unchanged sentence

Investments in collective trusts — — — 17,830 17,830

government securities — 47 — — 47

Corporate stocks 1,200 — — — 1,200

$ 2,242 $ 47 $ — $ 17,830 $ 20,119

15 unchanged sentences

Employees are immediately enrolled in the plan and eligible to make pre-tax deferrals, subject to limits imposed under the plan and the deferral limit established annually by the IRS, and receive Company matching contributions not in excess of 4 % of compensation.

The Company may make a discretionary profit-sharing contribution for each eligible participant in an amount up to 5 % of plan compensation and 5 % of plan compensation in excess of the Social Security wage base (prior to 2020, the profit-sharing contribution was non-discretionary).

To be eligible to receive this profit-sharing contribution, an employee must:

15 unchanged sentences

Benefits payable from the Deferred Income Plan equal the account balance of each participant.

Beneficiaries of directors and officers who have continuously deferred at rates prescribed by the Company since January 1, 2005, and who die while employed by the Company or serving as a director may receive an additional preretirement death benefit from the Deferred Income Plan.

In connection with the Company’s acquisition of Brand Group Holdings, Inc.

(“Brand”), the Company assumed the Brand Group Holdings, Inc.

A director or officer’s beneficiaries may receive an additional preretirement death benefit from the Deferred Income Plan when the officer or director has continuously deferred at rates prescribed by the Company since January 1, 2005, and when such officer or director dies while employed by the Company or serving as a director.

In connection with the Company’s acquisition of Brand Group Holdings, Inc., the Company assumed the Brand Group Holdings, Inc.

Deferred Compensation Plan.

11 unchanged sentences

Liabilities associated with the SERPs totaled $ 3,345 and $ 3,523 at December 31, 2023 and 2022, respectively.

The plans are not qualified under Section 401 of the Internal Revenue Code.

The plans are not qualified under Section 401 of the Internal Revenue Code of 1986, as amended.

Renasant Corporation and Subsidiaries

7 unchanged sentences

The expense associated with the plan for 2023, 2022 and 2021 was $ 10,030 , $ 9,545 and $ 8,609 , respectively.

In 2020, the Company implemented the 2020 Long-Term Incentive Compensation Plan that provides for the grant of stock options and stock appreciation rights and the award of restricted stock and restricted stock units (which replaced the Company’s previous long-term equity incentive compensation plan, under which restricted stock awards remain outstanding).

Options granted under the plan permit the acquisition of shares of the Company’s common stock at an exercise price equal to the fair market value of the shares on the date of grant.

6 unchanged sentences

No options remained outstanding as of December 31, 2021.

The following table summarizes information about options outstanding, exercised and forfeited as of and for the years ended December 31, 2021 and 2020:

The following table summarizes information about options outstanding, exercised and forfeited as of and for the year ended December 31, 2021:

Shares Weighted

6 unchanged sentences

Exercisable at December 31, 2021 — $ — 0.00 $ —

Exercised ( 10,500 ) 14.96

Forfeited — —

Outstanding at December 31, 2021 — $ — 0.00 $ —

Exercisable at December 31, 2021 — $ — 0.00 $ —

The total intrinsic value of options exercised during the years ended December 31, 2021 and 2020 was $ 262 and $ 279 , respectively.

The total intrinsic value of options exercised during the year ended December 31, 2021 was $ 262 .

All options that were fully vested and exercisable as of December 31, 2018 have been exercised.

10 unchanged sentences

restricted stock units were not awarded.

The fair value of each restricted stock award is the closing price of the Company’s common stock on the business day

The fair value of each restricted stock award is the closing price of the Company’s common stock on the business day immediately preceding the date of the award.

For restricted stock awarded under the plan, the Company recorded compensation expense of $ 13,458 , $ 11,244 and $ 9,882 for the years ended December 31, 2023, 2022 and 2021, respectively.

The following table summarizes the changes in restricted stock as of and for the year ended December 31, 2023:

Renasant Corporation and Subsidiaries

1 unchanged sentence

Note 12 – Employee Benefit and Deferred Compensation Plans (continued)

immediately preceding the date of the award.

For restricted stock awarded under the plan, the Company recorded compensation expense of $ 11,244 , $ 9,882 and $ 10,419 for the years ended December 31, 2022, 2021 and 2020, respectively.

The following table summarizes the changes in restricted stock as of and for the year ended December 31, 2022:

Stock Weighted

18 unchanged sentences

The Company also enters into forward commitments to sell residential mortgage loans to secondary market investors.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 13 – Derivative Instruments (continued)

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

12 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 13 – Derivative Instruments (continued)

Year Ended December 31,

10 unchanged sentences

The Company uses interest rate swap contracts 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 SOFR-based 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.

The Company entered into an interest rate collar in June 2022 with a 2.25 % floor and 4.57 % cap.

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

As of December 31, 2022, the Company is hedging its exposure to the variability of future cash flows through 2032 and a portion of these hedges are forward starting.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 13 – Derivative Instruments (continued)

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

13 unchanged sentences

As a result of the termination the Company recognized a gain of $ 4,676 for the year ended December 31, 2021.

In December 2020, the Company terminated two interest rate swap contracts with notional amounts of $ 15,000 each with ending dates of June 2022 and June 2023, respectively.

The Company recorded $ 2,040 in swap termination charges for the year ended December 31, 2020.

There were no such terminations in 2022 or 2023.

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-to-floating rate subordinated notes.

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

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

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

3 unchanged sentences

Interest rate swaps Other Liabilities $ 100,000 $ 17,052 $ 100,000 $ 19,789

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 13 – Derivative Instruments (continued)

The following table presents the effects of the Company’s fair value hedge relationships on the Consolidated Statements of Income for the periods presented:

6 unchanged sentences

Interest rate swaps - subordinated notes Interest Expense $ ( 2,737 ) $ 14,378 $ 5,202

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 13 – Derivative Instruments (continued)

The following table presents the amounts that were recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of the dates presented:

17 unchanged sentences

Net amounts $ 5,421 $ 14,437 $ 1,488 $ —

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 14 – Income Taxes

10 unchanged sentences

$ 32,509 $ 45,240 $ 46,935

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 14 – Income Taxes (continued)

The reconciliation of income taxes computed at the United States federal statutory tax rates to the provision for income taxes is as follows, for the periods presented:

10 unchanged sentences

$ 32,509 $ 45,240 $ 46,935

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 14 – Income Taxes (continued)

Significant components of the Company’s deferred tax assets and liabilities are as follows for the periods presented:

5 unchanged sentences

Impairment of assets 138 316

Tax credits 4,035 —

Net operating loss carryforwards 33 497

1 unchanged sentence

Lease liabilities under operating leases 13,066 14,641

Realized losses on securities 4,892 —

Other 2,660 3,523

15 unchanged sentences

The Company acquired federal and state net operating losses as part of its previous acquisitions, with varying expiration periods.

The federal and state net operating losses acquired in the Brand acquisition were $ 81,288 and $ 55,067 , respectively, all created in 2018.

As part of the 2017 Tax Cuts and Jobs Act and corresponding state tax laws, the federal net operating losses

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 14 – Income Taxes (continued)

and the majority of the state net operating losses created by Brand during 2018 have an indefinite carryforward period.

The federal net operating loss related to the Brand acquisition was fully utilized during 2021, while at December 31, 2022, there were state net operating losses without expiration periods of $ 5,388 .

The federal and state net operating losses acquired in the Heritage Financial Group, Inc.

acquisition were $ 18,321 and $ 16,849 , respectively, of which $ 1,101 and $ 278 remain to be utilized as of December 31, 2022.

These losses begin to expire in 2029 and are expected to be fully utilized.

While the Company has no remaining state net operating losses as of December 31, 2023, the remaining federal net operating losses have an indefinite carryforward period.

Because the benefits are expected to be fully realized, the Company recorded no valuation allowance against the net operating losses for the year ended December 31, 2023.

3 unchanged sentences

State — 5,666

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 14 – Income Taxes (continued)

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, related to federal and state income tax matters as of December 31 follows below:

23 unchanged sentences

When there is limited transparency around the inputs to the valuation, the instruments are classified within Level 3 of the fair value hierarchy.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 15 – Fair Value Measurements (continued)

Derivative instruments :

8 unchanged sentences

Because the valuation is based on external pricing of similar instruments, mortgage loans held for sale are classified within Level 2 of the fair value hierarchy.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 15 – Fair Value Measurements (continued)

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

13 unchanged sentences

Securities available for sale:

Trust preferred securities $ — $ — $ — $ —

Other available for sale securities $ — $ 1,533,942 $ — $ 1,533,942

8 unchanged sentences

There were no such transfers between levels of the fair value hierarchy during the year ended December 31, 2023.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 15 – Fair Value Measurements (continued)

The following table provides for the period presented a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs:

Securities available for sale

Trust preferred

Balance at January 1, 2021 $ 9,012

Accretion included in net income 8

Realized losses included in net income, net of premium amortization 2,060

Unrealized losses included in other comprehensive income 941

Sales ( 12,021 )

Balance at December 31, 2021 $ —

For 2023 and 2022, 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.

6 unchanged sentences

Individually evaluated loans, net of allowance for credit losses $ — $ — $ 21,303 $ 21,303

OREO — — 1,763 1,763

Total $ — $ — $ 21,303 $ 21,303

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 15 – Fair Value Measurements (continued)

Level 1 Level 2 Level 3 Totals

13 unchanged sentences

Individually evaluated loans that were measured or re-measured at fair value had a carrying value of $ 37,515 and $ 18,288 at December 31, 2023 and December 31, 2022, respectively, and a reserve for these loans of $ 9,753 and $ 3,556 was included in the allowance for credit losses for the same periods.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 15 – Fair Value Measurements (continued)

Other real estate owned :

4 unchanged sentences

Accordingly, values for OREO are classified as Level 3.

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

December 31, 2022 December 31, 2021

There was no impairment recognized during 2023 of OREO assets still held in the Consolidated Balance Sheets at period end.

The following table presents, as of December 31, 2022, OREO measured at fair value on a nonrecurring basis that was still held in the Consolidated Balance Sheets at period-end.

December 31, 2022

Carrying amount prior to remeasurement $ 1,842

12 unchanged sentences

OREO $ — Appraised value of property less estimated costs to sell Estimated costs to sell 4 - 10 %

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 15 – Fair Value Measurements (continued)

Fair Value Option

1 unchanged sentence

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.

Net losses of $ 9,854 resulting from fair value changes of these mortgage loans were recorded in income during 2022, as compared to net losses of $ 10,354 in 2021 and net gains of $ 12,057 in 2020.

Net gains of $ 3,300 resulting from fair value changes of these mortgage loans were recorded in income during 2023, as compared to net losses of $ 9,854 in 2022 and net gains of $ 10,354 in 2021.

The amounts do 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.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements

Note 15 – Fair Value Measurements (continued)

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 December 31, 2023 and December 31, 2022:

39 unchanged sentences

Short-term borrowings 712,232 712,232 — — 712,232

Federal Home Loan Bank advances 417 — 422 — 422

Junior subordinated debentures 112,042 — 98,574 — 98,574

10 unchanged sentences

Securities available for sale:

Unrealized holding losses on securities $ ( 285,829 ) $ ( 71,478 ) $ ( 214,351 )

Unrealized holding gains on securities $ 20,194 $ 5,066 $ 15,128

Reclassification adjustment for losses realized in net income (1)

41,494 10,431 31,063

Amortization of unrealized holding losses on securities transferred to the held to maturity category 13,557 3,466 10,091

1 unchanged sentence

Derivative instruments:

Unrealized holding gains on derivative instruments 20,118 5,125 14,993

Unrealized holding losses on derivative instruments ( 2,558 ) ( 653 ) ( 1,905 )

Total derivative instruments ( 2,558 ) ( 653 ) ( 1,905 )

Defined benefit pension and post-retirement benefit plans:

Net loss arising during the period ( 4,107 ) ( 1,045 ) ( 3,062 )

Net gain arising during the period 80 20 60

Amortization of net actuarial loss recognized in net periodic pension cost (2)

Total defined benefit pension and post-retirement benefit plans 542 138 404

Total other comprehensive loss $ ( 264,687 ) $ ( 66,093 ) $ ( 198,594 )

Total other comprehensive income $ 73,229 $ 18,448 $ 54,781

Year Ended December 31, 2022

1 unchanged sentence

Unrealized holding losses on securities $ ( 285,829 ) $ ( 71,478 ) $ ( 214,351 )

Reclassification adjustment for gains realized in net income (1)

( 2,170 ) ( 552 ) ( 1,618 )

Amortization of unrealized holding gains on securities transferred to the held to maturity category ( 73 ) ( 19 ) ( 54 )

Amortization of unrealized holding losses on securities transferred to the held to maturity category 4,964 1,263 3,701

Total securities available for sale ( 280,865 ) ( 70,215 ) ( 210,650 )

1 unchanged sentence

Unrealized holding gains on derivative instruments 20,118 5,125 14,993

Reclassification adjustment for gains realized in net income related to swap termination ( 4,676 ) ( 1,190 ) ( 3,486 )

Total derivative instruments 20,118 5,125 14,993

11 unchanged sentences

Securities available for sale:

Unrealized holding gains on securities $ 27,788 $ 7,071 $ 20,717

Unrealized holding losses on securities $ ( 51,470 ) $ ( 13,099 ) $ ( 38,371 )

Reclassification adjustment for gains realized in net income (1)

( 2,170 ) ( 552 ) ( 1,618 )

Amortization of unrealized holding gains on securities transferred to the held to maturity category ( 73 ) ( 19 ) ( 54 )

Total securities available for sale ( 53,713 ) ( 13,670 ) ( 40,043 )

1 unchanged sentence

Unrealized holding gains on derivative instruments 10,848 2,761 8,087

Reclassification adjustment for losses realized in net income related to swap termination 2,040 519 1,521

Reclassification adjustment for gains realized in net income related to swap termination ( 4,676 ) ( 1,190 ) ( 3,486 )

Total derivative instruments 6,172 1,571 4,601

Defined benefit pension and post-retirement benefit plans:

Net gain arising during the period 1,069 272 797

Reclassification adjustment for settlement loss related to the VERP realized in net income (3)

New prior service cost (3)

( 485 ) ( 123 ) ( 362 )

Net loss arising during the period ( 356 ) ( 92 ) ( 264 )

Amortization of net actuarial loss recognized in net periodic pension cost (2)

Amortization of prior service cost (3)

Total defined benefit pension and post-retirement benefit plans ( 94 ) ( 25 ) ( 69 )

Total other comprehensive income $ 32,600 $ 8,296 $ 24,304

(1) Included in Net gains (losses) on sales of securities in the Consolidated Statements of Income

Total other comprehensive loss $ ( 47,635 ) $ ( 12,124 ) $ ( 35,511 )

(1) Included in Net (losses) gains on sales of securities and Impairment losses on securities in the Consolidated Statements of Income

(2) Included in Salaries and employee benefits in the Consolidated Statements of Income

(3) Included in Restructuring charges in the Consolidated Statements of Income

The accumulated balances for each component of other comprehensive income (loss), net of tax, at December 31 were as follows:

2023 2022 2021

Unrealized (losses) gains on securities $ ( 219,766 ) $ ( 9,116 ) $ 42,246

Non-credit related portion of other-than-temporary impairment on securities — — ( 11,319 )

Unrealized gains (losses) on derivative instruments 18,956 3,963 ( 638 )

Unrealized losses on securities $ ( 163,484 ) $ ( 219,766 ) $ ( 9,116 )

Unrealized gains on derivative instruments 17,051 18,956 3,963

Unrecognized losses on defined benefit pension and post-retirement benefit plans obligations ( 7,823 ) ( 8,227 ) ( 5,290 )

Total accumulated other comprehensive (loss) income $ ( 209,037 ) $ ( 10,443 ) $ 25,068

Total accumulated other comprehensive loss $ ( 154,256 ) $ ( 209,037 ) $ ( 10,443 )

Renasant Corporation and Subsidiaries

54 unchanged sentences

Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

The Federal Reserve, the FDIC and the Office of the Comptroller of the Currency have issued guidelines governing the levels of capital that bank holding companies and banks must maintain.

Those guidelines specify capital tiers, which include the following classifications (which include the “capital conservation buffer” discussed below):

Renasant Corporation and Subsidiaries

1 unchanged sentence

Note 20 – Regulatory Matters (continued)

The Federal Reserve, the FDIC and the Office of the Comptroller of the Currency have issued guidelines governing the levels of capital that bank holding companies and banks must maintain.

Those guidelines specify capital tiers, which include the following classifications (which include the “capital conservation buffer” discussed below):

Capital Tiers Tier 1 Capital to

67 unchanged sentences

Net interest income $ 498,673 $ 619 $ 2,793 $ ( 20,787 ) $ 481,298

Recovery for credit losses ( 1,668 ) — — — ( 1,668 )

Provision for credit losses 23,871 — — — 23,871

Noninterest income 114,263 11,821 24,839 ( 1,670 ) 149,253

6 unchanged sentences

Net interest income $ 437,435 $ 454 $ 1,657 $ ( 15,545 ) $ 424,001

Provision for credit losses 86,850 — — — 86,850

Recovery for credit losses ( 2,168 ) — — — ( 2,168 )

Noninterest income 195,214 11,370 22,185 ( 1,785 ) 226,984

53 unchanged sentences

Amortization/depreciation 1,770 1,478 891

Increase (decrease) in other assets 284 ( 5,628 ) ( 256 )

(Decrease) increase in other assets ( 8,824 ) 284 ( 5,628 )

Increase in other liabilities 8,921 9,225 6,952

1 unchanged sentence

Investing activities

Purchases of securities available for sale — — ( 6,104 )

Sales and maturities of securities and available for sale — 2,000 5,100

Other investing activities — — ( 100,000 )

Net cash (used in) provided by investing activities 2,000 ( 94,900 ) ( 5,563 )

Net cash provided by (used in) investing activities — 2,000 ( 94,900 )

Financing activities

4 unchanged sentences

Net cash (used in) provided by financing activities ( 50,279 ) ( 79,991 ) 80,729

(Decrease) increase in cash and cash equivalents ( 16,699 ) 55,262 99,697

Increase (decrease) in cash and cash equivalents 1,870 ( 16,699 ) 55,262

Cash and cash equivalents at beginning of year 167,727 184,426 129,164

36 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-K

Item 8. Financial Statements and Supplementary Data