What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-05-08 compared with 2023-11-08 · 232 added, 346 removed, 1184 unchanged (33% of the section changed)

3 unchanged sentences

(In Thousands, Except Share Data)

September 30,

2024 December 31, 2023

2 unchanged sentences

Cash and cash equivalents 844,400 801,351

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)

Securities held to maturity (net of allowance for credit losses of $ 32 at each of March 31, 2024 and December 31, 2023) (fair value of $ 1,085,085 and $ 1,121,830 , respectively)

1,199,111 1,221,464

38 unchanged sentences

(In Thousands, Except Share Data)

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

Three Months Ended

Interest income

10 unchanged sentences

Provision for credit losses on loans 2,638 7,960

Recovery of credit losses on unfunded commitments ( 200 ) ( 1,500 )

Provision for credit losses 2,438 6,460

Net interest income after provision for credit losses 120,852 129,315

5 unchanged sentences

Mortgage banking income 11,370 8,517

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

Gain on debt extinguishment 56 —

BOLI income 2,691 3,003

10 unchanged sentences

Communications 2,024 1,980

Merger and conversion related expenses — — — 687

Restructuring charges — — — 732

Other 14,669 12,749

10 unchanged sentences

(In Thousands)

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

Three Months Ended

Net income $ 39,409 $ 46,078

Other comprehensive income (loss), net of tax:

Other comprehensive income, net of tax:

Securities available for sale:

Unrealized holding losses on securities ( 12,883 ) ( 63,579 ) ( 13,282 ) ( 220,999 )

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

Unrealized holding (losses) gains on securities ( 4,634 ) 15,531

Amortization of unrealized holding losses on securities transferred to the held to maturity category 2,438 2,328

1 unchanged sentence

Derivative instruments:

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

Unrealized holding losses on derivative instruments ( 570 ) ( 1,232 )

Total derivative instruments ( 570 ) ( 1,232 )

3 unchanged sentences

Other comprehensive (loss) income, net of tax ( 2,687 ) 16,713

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

Comprehensive income $ 36,722 $ 62,791

See Notes to Consolidated Financial Statements.

2 unchanged sentences

(In Thousands, Except Share Data)

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

Nine Months Ended September 30, 2023 Shares Amount

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

Three Months Ended March 31, 2024 Shares Amount

Balance at January 1, 2024 56,142,207 $ 296,483 $ ( 105,249 ) $ 1,308,281 $ 952,124 $ ( 154,256 ) $ 2,297,383

Net income — — — — 39,409 — 39,409

Other comprehensive income — — — — — 16,713 16,713

Comprehensive income 62,791

Cash dividends ($ 0.22 per share)

— — — — ( 12,561 ) — ( 12,561 )

Issuance of common stock for stock-based compensation awards 120,554 — 4,018 ( 6,409 ) — — ( 2,391 )

Stock-based compensation expense — — — 3,445 — — 3,445

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

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

Other comprehensive income — — — — — 863 863

Comprehensive income 29,506

Cash dividends ($ 0.22 per share)

— — — — ( 12,573 ) — ( 12,573 )

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

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

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

Net income — — — — $ 41,833 $ 41,833

Other comprehensive loss — — — — — ( 2,687 ) ( 2,687 )

4 unchanged sentences

Stock-based compensation expense — — — 3,992 — — 3,992

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

Balance at March 31, 2024 56,304,860 $ 296,483 $ ( 99,683 ) $ 1,303,613 $ 978,880 $ ( 156,943 ) $ 2,322,350

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

Nine Months Ended September 30, 2022 Shares Amount

Three Months Ended March 31, 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

Net income — — — — 46,078 — 46,078

Other comprehensive loss — — — — — ( 94,126 ) ( 94,126 )

Comprehensive loss ( 60,579 )

Other comprehensive income — — — — — 16,713 16,713

Comprehensive income 62,791

Cash dividends ($ 0.22 per share)

3 unchanged sentences

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

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

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

Comprehensive loss ( 11,151 )

Cash dividends ($ 0.22 per share)

— — — — ( 12,488 ) — ( 12,488 )

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

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

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

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)

Nine Months Ended September 30,

Three Months Ended March 31,

Operating activities

Net income $ 39,409 $ 46,078

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

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

Provision for credit losses 2,438 6,460

Depreciation, amortization and accretion 8,097 9,237

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

Deferred income tax expense 1,706 2,667

Proceeds from sale of MSR 23,011 —

3 unchanged sentences

Gains on sales of mortgage loans held for sale ( 4,535 ) ( 4,769 )

Losses on sales of securities 22,438 —

Losses (gains) on sales of premises and equipment 8 ( 245 )

Debt prepayment benefit ( 56 ) —

Losses on sales of premises and equipment 50 2

Stock-based compensation expense 3,992 3,445

Increase in other assets ( 30,741 ) ( 32,187 )

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

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

Decrease (increase) in other assets 9,904 ( 10,945 )

Increase in other liabilities ( 5,462 ) ( 13,366 )

Net cash provided by (used in) operating activities 65,057 ( 7,382 )

Investing activities

2 unchanged sentences

Proceeds from call/maturities of securities available for sale 22,148 45,342

Purchases of securities held to maturity — ( 91,803 )

Proceeds from call/maturities of securities held to maturity 24,159 25,424

2 unchanged sentences

Proceeds from sales of premises and equipment 256 —

Purchase of bank-owned life insurance — ( 80,000 )

Net change in FHLB stock 5,120 ( 22,130 )

Proceeds from sales of other assets 132 647

Net cash paid in acquisition of businesses — ( 10,066 )

Other, net 93 1,340

1 unchanged sentence

Financing activities

Net (decrease) increase in noninterest-bearing deposits ( 824,559 ) 109,096

Net increase (decrease) in interest-bearing deposits 1,494,703 ( 582,696 )

Net decrease in noninterest-bearing deposits ( 67,511 ) ( 313,879 )

Net increase in interest-bearing deposits 227,889 738,933

Net (decrease) increase in short-term borrowings ( 199,456 ) 19,825

1 unchanged sentence

Cash paid for dividends ( 12,653 ) ( 12,561 )

Net cash provided by (used in) financing activities 27,868 ( 274,115 )

Net increase (decrease) in cash and cash equivalents 165,164 ( 1,398,465 )

Net cash (used in) provided by financing activities ( 51,976 ) 432,318

Net increase in cash and cash equivalents 43,049 271,705

Cash and cash equivalents at beginning of period 801,351 575,992

15 unchanged sentences

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

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

Prior to the end of the third quarter of 2022, all of SCF’s assets were distributed to the Bank in connection with the conversion and integration of SCF into the Bank.

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

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

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

The Bank acquired Republic Business Credit, a factoring and asset-based lending company headquartered in New Orleans, Louisiana (“RBC”), effective December 30, 2022.

Basis of Presentation :

9 unchanged sentences

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

ASU 2023-02 will be effective on January 1, 2024.

Early adoption is permitted, including in an interim period.

ASU 2023-02 was effective on January 1, 2024.

The adoption of this accounting pronouncement will have no impact on the Company’s historical financial statements but could influence the Company’s decisions with respect to investments in certain tax credits prospectively.

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 2023-06 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 was effective January 1, 2024 and did not have a significant impact on our financial statements or segment disclosures.

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 2023-09 is effective January 1, 2025 and is not expected to have a significant impact on our financial statements.

Renasant Corporation and Subsidiaries

3 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 September 30, 2023 or December 31, 2022.

September 30, 2023

There was no allowance for credit losses allocated to any of the Company’s available for sale securities as of March 31, 2024 or December 31, 2023.

March 31, 2024

Obligations of states and political subdivisions $ 21,669 $ 88 $ ( 1,994 ) $ 19,763

8 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

10 unchanged sentences

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

September 30, 2023

March 31, 2024

Obligations of states and political subdivisions $ 287,255 $ 51 $ ( 37,550 ) $ 249,756

21 unchanged sentences

Held to maturity securities, net of allowance for credit losses $ 1,221,464

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)

Nine months ended September 30, 2023

Obligations of other U.S.

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

Securities sold were as follows for the three months ended March 31, 2024.

The Company intended to sell these securities as of December 31, 2023, and completed the sale in January 2024.

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

There were no securities sold during the first quarter of 2023.

Carrying Value Immediately Prior to Sale Net Proceeds Impairment Recognized in December 2023

Three months ended March 31, 2024

Obligations of states and political subdivisions $ 12,301 $ 11,360 $ ( 941 )

3 unchanged sentences

Commercial mortgage backed securities:

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

Government agency collateralized mortgage obligations 28,547 25,913 ( 2,634 )

2 unchanged sentences

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.

At March 31, 2024 and December 31, 2023, securities with a carrying value of $ 799,198 and $ 880,715 , respectively, were pledged to secure government, public and trust deposits.

Securities with a carrying value of $ 14,106 and $ 14,329 were pledged as collateral for short-term borrowings and derivative instruments at March 31, 2024 and December 31, 2023, respectively.

The amortized cost and fair value of securities at March 31, 2024 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:

September 30, 2023

March 31, 2024

Obligations of states and political subdivisions — $ — $ — 7 $ 13,253 $ ( 1,994 ) 7 $ 13,253 $ ( 1,994 )

8 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 )

16 unchanged sentences

Held to Maturity:

September 30, 2023

March 31, 2024

Obligations of states and political subdivisions 1 $ 2,372 $ ( 16 ) 127 $ 245,670 $ ( 37,534 ) 128 $ 248,042 $ ( 37,550 )

17 unchanged sentences

Total 2 $ 2,807 $ ( 25 ) 234 $ 1,117,285 $ ( 99,715 ) 236 $ 1,120,092 $ ( 99,740 )

The Company evaluates its investment portfolio for impairment related to credit losses on a quarterly basis.

Impairment is assessed at the individual security level.

The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis.

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

The Company evaluates its available for sale investment securities in an unrealized loss position on a quarterly basis.

If the Company intends to sell the security or it is more likely than not that it will be required to sell before recovery, the entire unrealized loss is recorded as a loss within noninterest income in the Consolidated Statements of Income along with a corresponding adjustment to the amortized cost basis of the security.

If the Company does not intend to sell the security and it is not more likely than not that it will be required to sell the security before recovery of its amortized cost basis, the Company evaluates if any of the unrealized loss is related to a potential credit loss.

The amount related to credit loss, if any, is recognized in earnings as a provision for credit loss and a corresponding allowance for credit losses is established;

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

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

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 tax.

As of March 31, 2024, 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 federal 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.

When determining the fair value of

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

the contractual cash flows for municipal and corporate securities, the Company considers historical experience with credit sensitive securities, current market conditions, the financial condition of the underlying issuer, current credit ratings, ratings changes and outlook, explicit and implicit guarantees, or insurance programs.

Based upon its review of these factors as of March 31, 2024, 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 (loss).

See Note 12, “Other Comprehensive Income (Loss)” for more information on the Company’s unrealized losses on securities.

The allowance for credit losses on held to maturity securities was $ 32 at March 31, 2024 and December 31, 2023.

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

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

As of March 31, 2024, all of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies.

Note 3 – Loans

2 unchanged sentences

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

September 30,

2024 December 31, 2023

25 unchanged sentences

In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful.

Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due.

Loans may be placed on nonaccrual status regardless of whether or not

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

such loans are considered past due.

For loans that are placed on nonaccrual status or charged-off, all interest accrued for the current year but not collected is reversed against interest income.

10 unchanged sentences

Past Due Current

September 30, 2023

March 31, 2024

Commercial, financial, agricultural $ 3,276 $ 227 $ 1,859,544 $ 1,863,047 $ 195 $ 1,200 $ 4,966 $ 6,361 $ 1,869,408

48 unchanged sentences

Certain Modifications to Borrowers Experiencing Financial Difficulty

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

All modifications for the three months ended March 31, 2024 and 2023 and which met the disclosure criteria in ASU 2022-02 were performing in accordance with their modified terms at March 31, 2024 and 2023, respectively.

Unused commitments totaled $ 85 at March 31, 2024.

There were no unused commitments at March 31, 2023.

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.

2 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

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 following tables present the amortized cost basis of loans that were experiencing financial difficulty, modified during the three months ended March 31, 2024 and 2023, respectively and required to be disclosed under ASU 2022-02, by class of financing receivable 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.

Nine Months Ended September 30, 2023

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

Three Months Ended March 31, 2024

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

Commercial, financial, agricultural $ 1,741 $ 165 $ — $ 517 $ — $ 2,423 0.13 %

Real estate – construction:

Residential — 3,751 — 3,751 1.25

Total real estate – construction — 3,751 — 3,751 0.27

Real estate – 1-4 family mortgage:

Home equity 7 — — 7 —

Total real estate – 1-4 family mortgage 7 — — 7 —

Primary — 33 246 — — 279 0.01

Real estate – commercial mortgage:

2 unchanged sentences

Total real estate – commercial mortgage 7,431 187 89 — 270 7,977 0.14

Installment loans to individuals — — 14 — — 14 0.01

Loans, net of unearned income $ 9,172 $ 385 $ 349 $ 517 $ 270 $ 10,693 0.09 %

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

payment delay includes extension of the amortization period.

Three Months Ended March 31, 2023

Interest Rate Reduction % Total Loans by Class

Real estate – commercial mortgage:

Owner-occupied $ 155 0.01 %

Non-owner occupied 1,029 0.03

Loans, net of unearned income $ 1,184 0.01 %

The following tables present the weighted average financial effect of loan modifications requiring disclosure under ASU 2022-02 by class of financing receivable for the three months ended March 31, 2024 and 2023.

Three Months Ended March 31, 2024

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

Commercial, financial, agricultural 39 7.5 —

Real estate – construction:

Residential — 4.7 —

Real estate – 1-4 family mortgage:

Home equity 300 — —

Primary — 24.0 35.7

Real estate – commercial mortgage:

1 unchanged sentence

Non-owner occupied — — 9.0

Installment loans to individuals — — 17.0

payment delay includes extension of the amortization period.

Three months ended March 31, 2024

Loan Type Financial Effect

Combination - Term Extension and Payment Delay

Commercial, financial, agricultural Extended the term and delayed the payment 42 months

Combination - Interest Rate Reduction and Term Extension

Real Estate - Commercial Mortgage - Owner-Occupied Reduced the interest rate by 275 basis points and extended the term 21 months

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

payment delay includes extension of the amortization period.

Three Months Ended March 31, 2023

Interest Rate Reduction (in basis points)

Real estate – commercial mortgage:

Owner-occupied 68

Non-owner occupied 12

Credit Quality

6 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

2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Total

September 30, 2023

March 31, 2024

Commercial, Financial, Agricultural $ 77,044 $ 290,663 $ 270,335 $ 156,083 $ 94,343 $ 82,457 $ 873,299 $ 4,834 $ 1,849,058

21 unchanged sentences

Home Equity — 1,028 10 981 — — 22,387 58 24,464

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Term Loans Amortized Cost Basis by Origination Year

2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Total

Pass — 1,028 10 981 — — 22,184 — 24,203

19 unchanged sentences

Land Development 13,243 16,451 32,877 11,734 3,803 8,459 4,680 182 91,429

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 13,243 16,010 29,184 11,512 3,665 8,239 4,656 182 86,691

18 unchanged sentences

Pass 32,842 47,050 12,317 11,735 5,443 1,395 — — 110,782

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

Watch — 2,578 — 1,818 526 305 — — 5,227

56 unchanged sentences

2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Total

September 30, 2023

March 31, 2024

Commercial, Financial, Agricultural $ — $ — $ — $ — $ — $ 20,350 $ — $ — $ 20,350

89 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

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

The following tables disclose gross charge-offs by year of origination as of the dates presented:

March 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Total Charge-offs

Commercial, financial, agricultural $ — $ — $ 9 $ — $ — $ 129 $ 211 $ 349

Real estate – 1-4 family mortgage:

Primary — — — 13 — — — 13

Home equity — — — — — 24 — 24

Rental/investment — — — — — 45 — 45

Total real estate – 1-4 family mortgage — — — 13 — 69 — 82

Installment loans to individuals — 27 16 — — 436 — 479

Loans, net of unearned income $ — $ 27 $ 25 $ 13 $ — $ 634 $ 211 $ 910

December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans 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

25 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 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.

As of March 31, 2024 and December 31, 2023, the Company had accrued interest receivable for loans of $ 56,176 and $ 54,804 , respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets.

Renasant Corporation and Subsidiaries

6 unchanged sentences

Loans to Individuals Total

Three Months Ended September 30, 2023

Allowance for credit losses:

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

Charge-offs ( 2,252 ) — ( 130 ) — ( 641 ) ( 607 ) ( 3,630 )

Recoveries 690 48 181 208 2 568 1,697

Net (charge-offs) recoveries ( 1,562 ) 48 51 208 ( 639 ) ( 39 ) ( 1,933 )

Provision for (recovery of) credit losses on loans 4,696 483 ( 686 ) ( 642 ) 1,514 ( 50 ) 5,315

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

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Allowance for credit losses:

Beginning balance $ 43,980 $ 18,612 $ 47,283 $ 77,020 $ 2,515 $ 9,168 $ 198,578

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

Charge-offs ( 349 ) — ( 82 ) — — ( 479 ) ( 910 )

17 unchanged sentences

Mortgage Lease Financing Installment Loans to Individuals Total

Three Months Ended September 30, 2022

Allowance for credit losses:

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

Charge-offs ( 373 ) — ( 208 ) ( 1,956 ) — ( 722 ) ( 3,259 )

Recoveries 415 — 378 50 113 728 1,684

Net (charge-offs) recoveries 42 — 170 ( 1,906 ) 113 6 ( 1,575 )

Provision for (recovery of) credit losses on loans 268 1,454 1,452 6,800 399 ( 573 ) 9,800

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

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

Allowance for credit losses:

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

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

Initial impact of PCD loans acquired ( 26 ) — — — — — ( 26 )

Charge-offs ( 529 ) — ( 3 ) ( 5,115 ) — ( 810 ) ( 6,457 )

11 unchanged sentences

Nonaccruing loans with no allowance for credit losses $ 768 $ — $ 9,710 $ 5,511 $ — $ 5 $ 15,994

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 recorded a provision for credit losses on loans of $ 2,638 during the first quarter of 2024, as compared to a provision for credit losses on loans of $ 7,960 recorded in the first quarter of 2023.

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 provision for credit losses on loans of $ 5,315 in the third quarter of 2023 was primarily driven by loan growth.

The provision for credit losses on loans of $ 2,638 in the first quarter of 2024 was primarily driven by loan growth.

Allowance for Credit Losses on Unfunded Loan Commitments

1 unchanged sentence

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, 2023.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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

Ending balance $ 16,918 $ 19,935

Nine Months Ended September 30, 2023 2022

Three Months Ended March 31, 2024 2023

Allowance for credit losses on unfunded loan commitments:

Beginning balance $ 16,918 $ 20,118

Recovery of credit losses on unfunded loan commitments (included in other noninterest expense) ( 3,200 ) ( 100 )

Recovery of credit losses on unfunded loan commitments ( 200 ) ( 1,500 )

Ending balance $ 16,718 $ 18,618

Note 5 – Other Real Estate Owned

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

(In Thousands)

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:

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Residential real estate $ 1,244 $ 1,211

8 unchanged sentences

Dispositions ( 119 )

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.

Other ( 528 )

Balance at March 31, 2024 $ 9,142

At March 31, 2024 and December 31, 2023, the amortized cost of loans secured by Real Estate - 1-4 Family Mortgage in the process of foreclosure was $ 2,555 and $ 395 , respectively.

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

Three Months Ended

Repairs and maintenance $ 64 $ 16

6 unchanged sentences

(In Thousands)

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.

The carrying amounts of goodwill by operating segments for the three months ended March 31, 2024 are set forth in the table below.

Community Banks Insurance Total

Balance at January 1, 2024 $ 988,898 $ 2,767 $ 991,665

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

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

Additions to goodwill and other adjustments — — —

Balance at March 31, 2024 $ 988,898 $ 2,767 $ 991,665

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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

2 unchanged sentences

Amortization Net Carrying

September 30, 2023

March 31, 2024

Core deposit intangibles $ 82,492 $ ( 69,297 ) $ 13,195

6 unchanged sentences

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

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2022 2023 2022

Three Months Ended

Amortization expense for:

3 unchanged sentences

The estimated amortization expense of finite-lived intangible assets for the year ending December 31, 2024 and the succeeding four years is summarized as follows:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Core Deposit Intangibles Customer Relationship Intangible Total

16 unchanged sentences

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

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

There was no valuation adjustment on MSRs during the three months ended March 31, 2024 or 2023.

During the first quarter of 2024, the Company sold MSRs relating to mortgage loans having an aggregate unpaid principal balance of $ 2,013,235 to a third party for net proceeds of $ 23,011 , resulting in a gain of $ 3,472 .

Changes in the Company’s MSRs were as follows:

Balance at January 1, 2024 $ 91,688

Sale of MSRs ( 19,539 )

Capitalization 2,026

Amortization ( 2,579 )

Balance at September 30, 2023 $ 90,241

Balance at March 31, 2024 $ 71,596

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

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Unpaid principal balance $ 5,860,523 $ 7,826,182

8 unchanged sentences

Weighted-average remaining maturity (in years) 7.50 7.50

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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.

The Company recorded servicing fees of $ 4,088 and $ 4,265 for the three months ended March 31, 2024 and 2023, respectively, all of which are included in “Mortgage banking income” in the Consolidated Statements of Income.

Note 8 - Employee Benefit and Deferred Compensation Plans

3 unchanged sentences

Information related to the defined benefit pension plan maintained by Renasant Bank (“Pension Benefits”) and to the post-retirement health and life plan (“Other Benefits”) as of the dates presented is as follows:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Pension Benefits Other Benefits

Three Months Ended Three Months Ended

September 30, September 30,

2023 2022 2023 2022

Service cost $ — $ — $ — $ 1

Interest cost 249 185 6 3

Expected return on plan assets ( 309 ) ( 421 ) — —

Recognized actuarial loss (gain) 131 60 ( 15 ) ( 19 )

Net periodic benefit cost (return) $ 71 $ ( 176 ) $ ( 9 ) $ ( 15 )

Pension Benefits Other Benefits

Nine Months Ended Nine Months Ended

September 30, September 30,

March 31, March 31,

2024 2023 2024 2023

Service cost $ — $ — $ — $ 3

Interest cost $ 227 $ 249 $ 5 $ 6

4 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 or outstanding, nor compensation expense associated with options recorded, during the nine months ended September 30, 2023 or 2022.

There were no stock options granted or outstanding, nor compensation expense associated with options recorded, during the three months ended March 31, 2024 or 2023.

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

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The following table summarizes the changes in restricted stock as of and for the three months ended March 31, 2024:

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

4 unchanged sentences

Nonvested at end of period 264,623 $ 35.32 868,954 $ 35.10

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 .

During the three months ended March 31, 2024, the Company reissued 162,653 shares from treasury in connection with awards of restricted stock.

The Company recorded total stock-based compensation expense of $ 3,992 and $ 3,445 for the three months ended March 31, 2024 and 2023, 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 September 30, 2023 December 31, 2022

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Balance Sheet March 31, 2024 December 31, 2023

Location Notional Amount Fair Value Notional Amount Fair Value

10 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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

2023 2022 2023 2022

Three Months Ended March 31,

Interest rate contracts:

10 unchanged sentences

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 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 September 30, 2023 December 31, 2022

Balance Sheet March 31, 2024 December 31, 2023

Location Notional Amount Fair Value Notional Amount Fair Value

9 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 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).”

There were no ineffective portions for the three months ended March 31, 2024 or 2023.

The impact on other comprehensive income for the three months ended March 31, 2024 and 2023 is discussed in Note 12, “Other Comprehensive Income (Loss).”

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Derivatives designated as fair value hedges

3 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Balance Sheet September 30, 2023 December 31, 2022

Balance Sheet March 31, 2024 December 31, 2023

Location Notional Amount Fair Value Notional Amount Fair Value

3 unchanged sentences

Amount of Gain (Loss) Recognized in Income

Income Statement Three Months Ended September 30, Nine Months Ended September 30,

Income Statement Three Months Ended March 31,

Location 2024 2023

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 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022

Balance Sheet Location March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023

Long-term debt $ 80,324 $ 81,791 $ 18,563 $ 17,052

3 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Offsetting Derivative Assets Offsetting Derivative Liabilities

September 30,

2023 December 31, 2022 September 30,

2024 December 31, 2023 March 31,

2024 December 31, 2023

8 unchanged sentences

(In Thousands)

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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

September 30, December 31,

March 31, December 31,

Deferred tax assets

4 unchanged sentences

Impairment of assets 284 138

Tax credits 4,711 4,035

Net operating loss carryforwards 4 33

1 unchanged sentence

Lease liabilities under operating leases 12,974 13,066

Realized losses on securities 48 4,892

Other 2,748 2,660

9 unchanged sentences

Net deferred tax assets $ 94,882 $ 95,696

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.

For the three months ended March 31, 2024 and 2023, the Company recorded a provision for income taxes totaling $ 9,912 and $ 11,322 , respectively.

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The Company and its subsidiaries file a consolidated U.S.

9 unchanged sentences

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

Assets and liabilities that are required to be

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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

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

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

19 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Level 1 Level 2 Level 3 Totals

September 30, 2023

March 31, 2024

Financial assets:

6 unchanged sentences

$ — $ 35,759 $ — $ 35,759

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Level 1 Level 2 Level 3 Totals

10 unchanged sentences

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

There were no such transfers between levels of the fair value hierarchy during the 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.

There were no such transfers between levels of the fair value hierarchy during the three months ended March 31, 2024.

For the three months ended March 31, 2024 and 2023, 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:

September 30, 2023 Level 1 Level 2 Level 3 Totals

March 31, 2024 Level 1 Level 2 Level 3 Totals

Individually evaluated loans, net of allowance for credit losses $ — $ — $ 6,690 $ 6,690

3 unchanged sentences

Individually evaluated loans, net of allowance for credit losses $ — $ — $ 27,762 $ 27,762

OREO — — 1,763 1,763

Total $ — $ — $ 27,762 $ 27,762

1 unchanged sentence

Individually evaluated loans:

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

selling costs.

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

3 unchanged sentences

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

Individually evaluated loans 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.

Individually evaluated loans that were measured or re-measured at fair value had a carrying value of $ 11,348 and $ 37,515 at March 31, 2024 and December 31, 2023, respectively, and a specific reserve for these loans of $ 4,658 and $ 9,753 was included in the allowance for credit losses as of such dates.

Other real estate owned :

2 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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

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

Accordingly, values for OREO are classified as Level 3.

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

The following table presents OREO measured at fair value on a nonrecurring basis that was still held on the Consolidated Balance Sheets as of March 31, 2024.

There was no impairment recognized during 2023 of OREO assets still held in the Consolidated Balance Sheets as of December 31, 2023.

Carrying amount prior to remeasurement $ 103

5 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 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:

Mortgage servicing rights were carried at amortized cost at March 31, 2024 and December 31, 2023.

There were no valuation adjustments on MSRs during the three months ended March 31, 2024 or 2023.

The following table presents information as of March 31, 2024 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.

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.

A net loss of $ 1,703 and net gain of $ 1,780 resulting from fair value changes of these mortgage loans were recorded in income during the three months ended March 31, 2024 and 2023, 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.

2 unchanged sentences

however, given the short-term period that the Company holds these loans, valuation adjustments attributable to instrument-specific credit risk is nominal.

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 September 30, 2023 and December 31, 2022:

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The following table summarizes the differences between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of March 31, 2024 and December 31, 2023:

Fair Value Aggregate

Balance Difference

September 30, 2023

March 31, 2024

Mortgage loans held for sale measured at fair value $ 191,440 $ 187,881 $ 3,559

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 September 30, 2023 Carrying

As of March 31, 2024 Carrying

Value Level 1 Level 2 Level 3 Total

13 unchanged sentences

Derivative instruments 35,759 — 35,759 — 35,759

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

As of December 31, 2023 Carrying

21 unchanged sentences

(Benefit) Net of Tax

Three months ended September 30, 2023

Three months ended March 31, 2024

Securities available for sale:

3 unchanged sentences

Derivative instruments:

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

Total derivative instruments 2,670 683 1,987

Defined benefit pension and post-retirement benefit plans:

Amortization of net actuarial loss recognized in net periodic pension cost 116 30 86

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

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

Three months ended September 30, 2022

Securities available for sale:

Unrealized holding losses on securities $ ( 85,283 ) $ ( 21,704 ) $ ( 63,579 )

Amortization of unrealized holding gains on securities transferred to the held to maturity category 1,619 412 1,207

Total securities available for sale ( 83,664 ) ( 21,292 ) ( 62,372 )

Derivative instruments:

Unrealized holding gains on derivative instruments 2,262 575 1,687

Unrealized holding losses on derivative instruments ( 765 ) ( 195 ) ( 570 )

Total derivative instruments ( 765 ) ( 195 ) ( 570 )

3 unchanged sentences

Total other comprehensive loss $ ( 3,576 ) $ ( 889 ) $ ( 2,687 )

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Pre-Tax Tax Expense

(Benefit) Net of Tax

Nine months ended September 30, 2023

Three months ended March 31, 2023

Securities available for sale:

Unrealized holding losses on securities $ ( 17,744 ) $ ( 4,462 ) $ ( 13,282 )

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

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

Amortization of unrealized holding losses on securities transferred to the held to maturity category 3,128 800 2,328

7 unchanged sentences

Total other comprehensive income $ 22,302 $ 5,589 $ 16,713

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 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 )

Derivative instruments:

Unrealized holding gains on derivative instruments 19,219 4,891 14,328

Total derivative instruments 19,219 4,891 14,328

Defined benefit pension and post-retirement benefit plans:

Amortization of net actuarial loss recognized in net periodic pension cost 125 32 93

Total defined benefit pension and post-retirement benefit plans 125 32 93

Total other comprehensive loss $ ( 275,800 ) $ ( 70,191 ) $ ( 205,609 )

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

September 30,

2024 December 31, 2023

11 unchanged sentences

Three Months Ended

September 30,

Net income applicable to common stock $ 39,409 $ 46,078

6 unchanged sentences

Net income per common share - diluted $ 0.70 $ 0.82

Nine Months Ended

September 30,

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

Average common shares outstanding 56,085,556 55,888,226

Net income per common share - basic $ 2.08 $ 2.14

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

Average common shares outstanding 56,085,556 55,888,226

Effect of dilutive stock-based compensation 308,401 281,660

Average common shares outstanding - diluted 56,393,957 56,169,886

Net income per common share - diluted $ 2.07 $ 2.13

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

Three Months Ended

September 30,

Number of shares 78,296 68,771

Nine Months Ended

September 30,

Number of shares 24,146 19,750

Note 14 – Regulatory Matters

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

(In Thousands)

5 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Capital Tiers Tier 1 Capital to

20 unchanged sentences

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

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Amount Ratio Amount Ratio

9 unchanged sentences

Total Capital to Risk-Weighted Assets 1,904,816 13.56 % 1,888,104 13.49 %

Common Equity Tier 1 Capital (“CET1”) generally consists of common stock, retained earnings, accumulated other comprehensive income and certain minority interests, less certain adjustments and deductions.

In addition, the Company must maintain a “capital conservation buffer,” which is a specified amount of CET1 capital in addition to the amount necessary to meet minimum risk-based capital requirements.

The capital conservation buffer is designed to absorb losses during periods of economic stress.

If the Company’s ratio of CET1 to risk-weighted capital is below the capital conservation buffer, the Company will face restrictions on its ability to pay dividends, repurchase outstanding stock and make certain discretionary bonus payments.

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 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.

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 15 – Segment Reporting

7 unchanged sentences

Indirect revenues and expenses, including but not limited to income from the Company’s investment portfolio as well as certain costs associated with data processing and back office functions, primarily support the operations of the community banks and, therefore, are included in the results of the Community Banks segment.

Included in “Other” are the operations of the holding company and other eliminations which are necessary for purposes of reconciling to the consolidated amounts.

The following tables provide financial information for the Company’s operating segments as of and for the periods presented:

Banks Insurance Wealth

Management Other Consolidated

Three months ended September 30, 2023

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

Provision for credit losses 5,315 — — — 5,315

Noninterest income (loss) 28,679 3,276 6,638 ( 393 ) 38,200

Noninterest expense 99,791 2,237 5,150 491 107,669

Income (loss) before income taxes 57,482 1,495 1,496 ( 7,874 ) 52,599

Income tax expense (benefit) 12,339 387 72 ( 2,032 ) 10,766

Net income (loss) $ 45,143 $ 1,108 $ 1,424 $ ( 5,842 ) $ 41,833

Total assets $ 17,143,564 $ 39,434 $ 5,077 $ ( 6,454 ) $ 17,181,621

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

Three months ended September 30, 2022

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

Provision for credit losses 9,800 — — — 9,800

Noninterest income (loss) 32,324 3,123 6,132 ( 393 ) 41,186

Noninterest expense 94,474 2,190 4,553 357 101,574

Income (loss) before income taxes 62,578 1,031 2,373 ( 5,852 ) 60,130

Income tax expense (benefit) 14,811 268 — ( 1,516 ) 13,563

Net income (loss) $ 47,767 $ 763 $ 2,373 $ ( 4,336 ) $ 46,567

Total assets $ 16,369,592 $ 35,761 $ 73,704 $ ( 7,958 ) $ 16,471,099

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Included in “Other” are the operations of the holding company and other eliminations which are necessary for purposes of reconciling to the consolidated amounts.

The following tables provide financial information for the Company’s operating segments as of and for the periods presented:

Banks Insurance Wealth

Management Other Consolidated

Nine months ended September 30, 2023

Three months ended March 31, 2024

Net interest income (loss) $ 129,691 $ 481 $ 11 $ ( 6,893 ) $ 123,290

7 unchanged sentences

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

Nine months ended September 30, 2022

Three months ended March 31, 2023

Net interest income (loss) $ 141,796 $ 286 $ 11 $ ( 6,318 ) $ 135,775

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