26 unchanged sentences
(xvii) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses;
−Removed: (xviii) civil unrest, natural disasters, epidemics (including the re-emergence of the COVID-19 pandemic) and other catastrophic events in the Company’s geographic area;
+Added: (xviii) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area;
(xix) the impact, extent and timing of technological changes;
3 unchanged sentences
Financial Condition
−Removed: The following discussion provides details regarding the changes in significant balance sheet accounts at September 30, 2023 compared to December 31, 2022.
−Removed: Total assets were $17,181,621 at September 30, 2023 compared to $16,988,176 at December 31, 2022.
+Added: The following discussion provides details regarding the changes in significant balance sheet accounts at March 31, 2024 compared to December 31, 2023.
+Added: Total assets were $17,345,741 at March 31, 2024 compared to $17,360,535 at December 31, 2023.
The securities portfolio is used to provide a source for meeting liquidity needs and to supply securities to be used in collateralizing certain deposits and certain types of borrowings.
1 unchanged sentence
The following table shows the carrying value of our securities portfolio by investment type and the percentage of such investment type relative to the entire securities portfolio as of the dates presented:
−Removed: September 30, 2023 December 31, 2022
+Added: March 31, 2024 December 31, 2023
Balance Percentage of
8 unchanged sentences
Securities, net of allowance for credit losses $ 1,963,597 $ 2,144,743
−Removed: During the nine months ended September 30, 2023, the Company purchased $9,646 in investment securities, with mortgage-backed securities and collateralized mortgage obligations (“CMOs”) comprising all of these purchases, which occurred in the third quarter of 2023.
−Removed: CMOs are included in the “Mortgage-backed securities” line item in the above table.
−Removed: The mortgage-backed securities and CMOs held in our investment portfolio are primarily issued by government sponsored entities.
−Removed: During the nine months ended September 30, 2022, we purchased $800,260 in investment securities, with mortgage-backed securities and CMOs, in the aggregate, comprising approximately 62% of these purchases.
−Removed: Obligations of other U.S.
−Removed: Government agencies and corporations comprised approximately 21% of purchases made during the first nine months of 2022.
−Removed: Obligations of state and political subdivisions comprised approximately 5% of purchases made during the first nine months of 2022.
−Removed: Other debt securities in our investment portfolio, consisting of corporate debt securities, issuances from the Small Business Administration (“SBA”) and subordinated debt issuances, comprised the remaining 12% of purchases made during the first nine months of 2022.
−Removed: Our purchases of securities in the first nine months of 2023 substantially declined from the levels during the same period in 2022 as the proceeds of our securities portfolio was used to fund loan growth rather than being reinvested in the securities portfolio.
+Added: During the three months ended March 31, 2024, the Company purchased $46,975 in investment securities.
+Added: The Company did not purchase any investment securities during the first quarter of 2023.
+Added: Proceeds from maturities, calls and principal payments on securities during the first three months of 2024 totaled $46,307.
+Added: During the first quarter, the Company sold from the available for sale portfolio municipal securities, residential mortgage backed securities and commercial mortgage backed securities for net proceeds of $177,185.
+Added: The Company intended to sell these securities as of December 31, 2023;
+Added: therefore, the Company impaired the securities and recognized the loss in net income as of December 31, 2023.
+Added: The carrying value of the securities immediately prior to the impairment was $196,537, and the impairment charge was $19,352.
+Added: No additional loss was recorded in the first quarter of 2024.
+Added: Proceeds from the maturities, calls and principal payments on securities during the first three months of 2023 totaled $70,766.
+Added: The Company did not sell any securities during the first three months of 2023.
During the third quarter of 2022, the Company transferred, at fair value, $882,927 of securities from the available for sale portfolio to the held to maturity portfolio as the Company has the intent and ability to hold these securities until their maturity.
The related net unrealized losses of $99,675 (after tax losses 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.
−Removed: At September 30, 2023, the net unrealized after tax losses remaining to be amortized in accumulated other comprehensive income (loss) was $61,086.
+Added: At March 31, 2024, the net unrealized after tax losses remaining to be amortized in accumulated other comprehensive income (loss) was $56,084.
No gains or losses were recognized at the time of transfer.
−Removed: Proceeds from maturities, calls and principal payments on securities during the first nine months of 2023 totaled $208,095.
−Removed: The Company sold from the available for sale portfolio agency securities, municipal securities, residential mortgage backed securities and commercial mortgage backed securities with a carrying value of $511,419 at the time of sale for net proceeds of $488,981, resulting in a net loss on sale of $22,438 for the nine months ended September 30, 2023.
−Removed: Proceeds from the maturities, calls and principal payments on securities during the first nine months of 2022 totaled $372,484.
−Removed: The Company did not sell any securities during the first nine months of 2022.
For more information about the Company’s security portfolio, see Note 2, “Securities,” in the Notes to Consolidated Financial Statements of the Company in Item 1, Financial Statements, in this report.
Loans Held for Sale
−Removed: Loans held for sale, which consist of residential mortgage loans being held until they are sold in the secondary market, were $241,613 at September 30, 2023, as compared to $110,105 at December 31, 2022.
+Added: Loans held for sale, which consist of residential mortgage loans being held until they are sold in the secondary market, were $191,440 at March 31, 2024, as compared to $179,756 at December 31, 2023.
Mortgage loans to be sold are sold either on a “best efforts” basis or under a mandatory delivery sales agreement.
1 unchanged sentence
The risk we assume is conditioned upon loan underwriting and market conditions in the national mortgage market.
−Removed: mandatory delivery sales agreement, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price and delivery date.
+Added: Under a mandatory delivery sales agreement, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price and delivery date.
Penalties are paid to the investor if we fail to satisfy the contract.
2 unchanged sentences
Although loan fees and some interest income are derived from mortgage loans held for sale, the main source of income is gains from the sale of these loans in the secondary market.
−Removed: Total loans, excluding loans held for sale, were $12,168,023 at September 30, 2023 and $11,578,304 at December 31, 2022.
+Added: Total loans, excluding loans held for sale, were $12,500,525 at March 31, 2024 and $12,351,230 at December 31, 2023.
The tables below set forth the balance of loans outstanding, net of unearned income and excluding loans held for sale, by loan type and the percentage of each loan type to total loans as of the dates presented:
−Removed: September 30, 2023 December 31, 2022
+Added: March 31, 2024 December 31, 2023
Loans Percentage of Total Loans Total
20 unchanged sentences
Loan concentrations are considered to exist when there are amounts loaned to a number of borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions.
−Removed: At September 30, 2023, there were no concentrations of loans exceeding 10% of total loans which are not disclosed as a category of loans separate from the categories listed above.
+Added: At March 31, 2024, there were no concentrations of loans exceeding 10% of total loans which are not disclosed as a category of loans separate from the categories listed above.
The Company relies on deposits as its primary source of funds.
−Removed: Total deposits were $14,157,110 and $13,486,966 at September 30, 2023 and December 31, 2022, respectively.
−Removed: Noninterest-bearing deposits were $3,734,197 and $4,558,756 at September 30, 2023 and December 31, 2022, respectively, while interest-bearing deposits were $10,422,913 and $8,928,210 at September 30, 2023 and December 31, 2022, respectively.
−Removed: Interest-bearing deposits included brokered deposits of $757,775 and $233,133 at September 30, 2023 and December 31, 2022, respectively.
+Added: Total deposits were $14,237,163 and $14,076,785 at March 31, 2024 and December 31, 2023, respectively.
+Added: Noninterest-bearing deposits were $3,516,164 and $3,583,675 at March 31, 2024 and December 31, 2023, respectively, while interest-bearing deposits were $10,720,999 and $10,493,110 at March 31, 2024 and December 31, 2023, respectively.
+Added: Interest-bearing deposits included brokered deposits of $342,638 and $461,441 at March 31, 2024 and December 31, 2023, respectively.
Management continues to focus on growing and maintaining a stable source of funding, specifically noninterest-bearing deposits and other core deposits (that is, deposits excluding brokered deposits and time deposits greater than $250,000).
−Removed: Noninterest-bearing deposits represented 26.38% of total deposits at September 30, 2023, as compared to 33.80% of total deposits at December 31, 2022.
−Removed: The decrease in noninterest-bearing deposits as a percentage of total deposits reflects both deposit customers transferring noninterest-bearing deposits to interest-bearing deposits such as money market funds offered by the Company, other financial institutions and other financial services companies, and the impact of our increase in brokered
−Removed: deposits in the first nine months of 2023 as compared to brokered deposits at December 31, 2022, as management elected to maintain a high level of on-balance sheet liquidity in light of the conditions affecting financial institutions nationwide.
+Added: Noninterest-bearing deposits represented 24.70% of total deposits at March 31, 2024, as compared to 25.46% of total deposits at December 31, 2023.
+Added: The decrease in noninterest-bearing deposits as a percentage of total deposits primarily reflects deposit customers transferring noninterest-bearing deposits to interest-bearing deposits such as money market funds offered by the Company, other financial institutions and other financial services companies.
Under certain circumstances, management may elect to acquire non-core deposits (in the form of brokered deposits) or public fund deposits (which are deposits of counties, municipalities or other political subdivisions).
4 unchanged sentences
Because public fund deposits are obtained through a bid process, these deposit balances may fluctuate as competitive and market forces change.
−Removed: Although the Company has focused on growing stable sources of deposits to reduce reliance on public fund deposits, it participates in the bidding process for public fund deposits when pricing and other terms make it reasonable given market conditions or when management perceives that other factors, such as the public entity’s use of our treasury management or other products and services, make such participation advisable.
+Added: Although the Company has focused on growing stable sources of deposits to reduce reliance on public fund deposits, it
+Added: participates in the bidding process for public fund deposits when pricing and other terms make it reasonable given market conditions or when management perceives that other factors, such as the public entity’s use of our treasury management or other products and services, make such participation advisable.
Our public fund transaction accounts are principally obtained from public universities and municipalities, including school boards and utilities.
−Removed: Public fund deposits were $1,879,215 and $1,760,460 at September 30, 2023 and December 31, 2022, respectively, and represented 13.27% and 13.05% of total deposits as of September 30, 2023 and December 31, 2022, respectively.
+Added: Public fund deposits were $2,006,419 and $1,866,495 at March 31, 2024 and December 31, 2023, respectively, and represented 14.09% and 13.26% of total deposits as of March 31, 2024 and December 31, 2023, respectively.
Borrowed Funds
2 unchanged sentences
The following table presents our short-term borrowings by type as of the dates presented:
−Removed: September 30, 2023 December 31, 2022
+Added: March 31, 2024 December 31, 2023
Security repurchase agreements $ 8,121 $ 7,577
3 unchanged sentences
The following table presents our long-term debt by type as of the dates presented:
−Removed: September 30, 2023 December 31, 2022
+Added: March 31, 2024 December 31, 2023
Junior subordinated debentures $ 113,213 $ 112,978
2 unchanged sentences
Long-term funds obtained from the FHLB are used to match-fund fixed rate loans in order to minimize interest rate risk and to meet day-to-day liquidity needs, particularly when the cost of such borrowing compares favorably to the rates that we would be required to pay to attract deposits.
−Removed: There were no long-term advances from the FHLB outstanding at September 30, 2023 or December 31, 2022.
+Added: There were no long-term advances from the FHLB outstanding at March 31, 2024 or December 31, 2023.
All advances from the FHLB are collateralized by a blanket lien on the Bank’s loans.
−Removed: The Company had $3,111,063 of availability on unused lines of credit with the FHLB at September 30, 2023, as compared to $3,651,678 at December 31, 2022.
+Added: The Company had $2,850,966 of availability on unused lines of credit with the FHLB at March 31, 2024, as compared to $2,922,315 at December 31, 2023.
+Added: The Company also had credit available at the Federal Reserve Discount Window in the amount of $592,236 with no borrowings outstanding at March 31, 2024.
The Company has issued subordinated notes, the proceeds of which have been used for general corporate purposes, including providing capital to support the Company’s growth organically or through strategic acquisitions, repaying indebtedness and financing investments and capital expenditures, and for investments in Renasant Bank as regulatory capital.
4 unchanged sentences
Results of Operations
−Removed: Net income for the third quarter of 2023 was $41,833 compared to net income of $46,567 for the third quarter of 2022.
−Removed: Basic and diluted earnings per share (“EPS”) for the third quarter of 2023 were $0.75 and $0.74, respectively, as compared to basic and diluted EPS of $0.83 for the third quarter of 2022.
−Removed: Net income for the nine months ended September 30, 2023, was $116,554 compared to net income of $119,792 for the same period in 2022.
−Removed: Basic and diluted EPS were $2.08 and $2.07, respectively, for the first nine months of 2023 as compared to $2.14 and $2.13, respectively, for the first nine months of 2022.
−Removed: From time to time, the Company incurs expenses and charges or recognizes valuation adjustments in connection with certain transactions with respect to which management is unable to accurately predict when these items will be incurred or, when incurred, the amount of such items.
+Added: Net income for the first quarter of 2024 was $39,409 compared to net income of $46,078 for the first quarter of 2023.
+Added: Basic and diluted earnings per share (“EPS”) for the first quarter of 2024 were $0.70, as compared to basic and diluted EPS of $0.82 for the first quarter of 2023.
+Added: From time to time, the Company incurs expenses and charges or recognizes valuation adjustments in connection with certain transactions with respect to which management is unable to accurately predict when these items will be incurred or, when
+Added: incurred, the amount of such items.
The following table presents the impact of these items on reported EPS for the dates presented.
Three Months Ended
−Removed: September 30, 2023 September 30, 2022
−Removed: Pre-tax After-tax Impact to Diluted EPS Pre-tax After-tax Impact to Diluted EPS
−Removed: Gain on sale of MSR $ — $ — $ — $ (2,960) $ (2,292) $ (0.04)
−Removed: Nine Months Ended
−Removed: September 30, 2023 September 30, 2022
+Added: March 31, 2024 March 31, 2023
Pre-tax After-tax Impact to Diluted EPS Pre-tax After-tax Impact to Diluted EPS
−Removed: Merger and conversion expenses $ — $ — $ — $ 687 $ 541 $ 0.01
Gain on sale of MSR $ 3,472 $ 2,774 $ 0.05 $ — $ — $ —
−Removed: Restructuring charges — — — 732 576 0.01
−Removed: Loss on sale of securities 22,438 17,859 0.31 — — —
Net Interest Income
−Removed: Net interest income, the difference between interest earned on assets and the cost of interest-bearing liabilities, is the largest component of our net income, comprising 77.31% of total revenue (i.e., net interest income on a fully taxable equivalent basis and noninterest income) for the third quarter of 2023.
+Added: Net interest income, the difference between interest earned on assets and the cost of interest-bearing liabilities, is the largest component of our net income, comprising 75.26% of total revenue (i.e., net interest income on a fully taxable equivalent basis and noninterest income) for the first quarter of 2024.
The primary concerns in managing net interest income are the volume, mix and repricing of assets and liabilities.
−Removed: Net interest income was $127,383 and $393,374 for the three and nine months ended September 30, 2023, as compared to $130,318 and $343,462 for the same periods in 2022.
−Removed: On a tax equivalent basis, net interest income was $130,131 and $401,745 for the three and nine months ended September 30, 2023, as compared to $132,435 and $349,139 for the same periods in 2022.
+Added: Net interest income was $123,290 for the three months ended March 31, 2024, as compared to $135,775 for the same period in 2023.
+Added: On a tax equivalent basis, net interest income was $125,850 for the three months ended March 31, 2024, as compared to $138,529 for the same period in 2023.
The following table sets forth average balance sheet data, including all major categories of interest-earning assets and interest-bearing liabilities, together with the interest earned or interest paid and the average yield or average rate paid on each such category on a tax-equivalent basis for the periods presented:
−Removed: Three Months Ended September 30,
−Removed: Balance Interest
−Removed: Expense Yield/
−Removed: Balance Interest
−Removed: Expense Yield/
−Removed: Interest-earning assets:
−Removed: Loans held for investment $ 12,030,109 $ 183,521 6.06 % $ 10,829,137 $ 124,614 4.57 %
−Removed: Loans held for sale 227,982 3,751 6.58 143,837 2,075 5.77
−Removed: Taxable 2,053,113 9,218 1.80 2,773,924 12,439 1.79
−Removed: Tax-exempt (1)
−Removed: 329,760 1,807 2.19 449,927 2,664 2.37
−Removed: Interest-bearing balances with banks 729,049 10,128 5.51 663,218 3,458 2.07
−Removed: Total interest-earning assets 15,370,013 208,425 5.39 14,860,043 145,250 3.89
−Removed: Cash and due from banks 180,708 191,358
−Removed: Intangible assets 1,012,460 967,154
−Removed: Other assets 672,232 626,926
−Removed: Total assets $ 17,235,413 $ 16,645,481
−Removed: Liabilities and shareholders’ equity
−Removed: Interest-bearing liabilities:
−Removed: Interest-bearing demand (2)
−Removed: $ 6,520,145 $ 41,464 2.52 % $ 6,462,940 $ 6,061 0.37 %
−Removed: Savings deposits 942,619 793 0.33 1,134,665 155 0.05
−Removed: Brokered deposits 947,970 12,490 5.23 — — —
−Removed: Time deposits 2,001,923 16,159 3.20 1,240,439 1,025 0.33
−Removed: Total interest-bearing deposits 10,412,657 70,906 2.70 8,838,044 7,241 0.33
−Removed: Borrowed funds 545,105 7,388 5.40 572,376 5,574 3.88
−Removed: Total interest-bearing liabilities 10,957,762 78,294 2.84 9,410,420 12,815 0.54
−Removed: Noninterest-bearing deposits 3,800,160 4,867,314
−Removed: Other liabilities 245,886 194,339
−Removed: Shareholders’ equity 2,231,605 2,173,408
−Removed: Total liabilities and shareholders’ equity $ 17,235,413 $ 16,645,481
−Removed: Net interest income/net interest margin $ 130,131 3.36 % $ 132,435 3.54 %
−Removed: Government and some U.S.
−Removed: Government Agency securities are tax-exempt in the states in which the Company operates.
−Removed: (2) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Balance Interest
33 unchanged sentences
The average balances of nonaccruing assets are included in the tables above.
−Removed: Interest income and weighted average yields on tax-exempt loans and securities have been computed on a fully tax equivalent basis assuming a federal tax rate of 21% and a state tax rate of 4.45%, which is net of federal tax benefit.
+Added: Interest income and weighted average yields on tax-exempt loans and securities have been computed on a fully tax equivalent basis assuming a federal tax rate of 21%.
Net interest margin and net interest income are influenced by internal and external factors.
1 unchanged sentence
External factors include changes in market interest rates, competition and other factors affecting the banking industry in general, and the shape of the interest rate yield curve.
−Removed: The largest contributing factor to the increase in net interest income for the nine months ended September 30, 2023, as compared to the same period in 2022, was the rising rate environment throughout 2022 and thus far in 2023.
−Removed: The higher interest rates benefited yields on earning assets, which, coupled with steady loan growth, resulted in an increase in interest income year over year.
−Removed: This increase was offset to some degree by an increase in interest expense.
−Removed: The rising interest rates negatively impacted both the cost and mix of our funding sources, and the Company’s decision to increase on-balance sheet liquidity following the bank failures in March 2023 has also resulted in higher cost of funds and interest expense.
−Removed: The Company has continued its efforts to mitigate increases in the cost of funding through maintaining noninterest-bearing deposits, staying disciplined yet competitive in pricing on interest-bearing deposits in the current rising rate environment and accessing alternative sources of liquidity, such as brokered
−Removed: In the first nine months of 2023, however, ensuring the safe and sound operation of the Bank in light of industry-wide conditions was management’s paramount concern, which led to the Company significantly increasing its brokered deposits and borrowed funds in the first nine months of 2023 as compared to the same period in 2022 in order to maintain robust on-balance sheet liquidity.
−Removed: The following tables set forth a summary of the changes in interest earned, on a tax equivalent basis, and interest paid resulting from changes in volume and rates for the Company for the three and nine months ended September 30, 2023, as compared to the same period in 2022 (the changes attributable to the combined impact of yield/rate and volume have been allocated on a pro-rata basis using the absolute value of amounts calculated):
−Removed: Three Months Ended September 30, 2023 Compared to the Three Months Ended September 30, 2022
−Removed: Volume Rate Net
−Removed: Interest income:
−Removed: Loans held for investment $ 14,993 $ 43,914 $ 58,907
−Removed: Loans held for sale 1,351 325 1,676
−Removed: Taxable (3,336) 115 (3,221)
−Removed: Tax-exempt (670) (187) (857)
−Removed: Interest-bearing balances with banks 376 6,294 6,670
−Removed: Total interest-earning assets 12,714 50,461 63,175
−Removed: Interest expense:
−Removed: Interest-bearing demand deposits 54 35,349 35,403
−Removed: Savings deposits (31) 669 638
−Removed: Brokered deposits 12,490 — 12,490
−Removed: Time deposits 990 14,144 15,134
−Removed: Borrowed funds (281) 2,095 1,814
−Removed: Total interest-bearing liabilities 13,222 52,257 65,479
−Removed: Change in net interest income $ (508) $ (1,796) $ (2,304)
−Removed: Nine months ended September 30, 2023 Compared to the Nine Months Ended September 30, 2022
+Added: The largest contributing factor to the decrease in net interest income for the three months ended March 31, 2024, as compared to the same period in 2023, was the rising rate environment that began in 2022 and continued throughout 2023.
+Added: The higher interest rates benefited yields on earning assets, but this increase was more than offset by an increase in interest expense.
+Added: The rising interest rates negatively impacted both the cost and mix of our funding sources.
+Added: The Company has continued its efforts to mitigate increases in the cost of funding through maintaining noninterest-bearing deposits, staying disciplined yet competitive in pricing on interest-bearing deposits in the current rate environment and accessing alternative sources of liquidity, such as brokered deposits.
+Added: The following tables set forth a summary of the changes in interest earned, on a tax equivalent basis, and interest paid resulting from changes in volume and rates for the Company for the three months ended March 31, 2024, as compared to the same period
+Added: in 2023 (the changes attributable to the combined impact of yield/rate and volume have been allocated on a pro-rata basis using the absolute value of amounts calculated):
+Added: Three Months Ended March 31, 2024 Compared to the Three Months Ended March 31, 2023
Volume Rate Net
14 unchanged sentences
Change in net interest income $ 9,870 $ (22,549) $ (12,679)
−Removed: Interest income, on a tax equivalent basis, was $208,425 and $595,259 for the three and nine months ended September 30, 2023, as compared to $145,250 and $382,421 for the same periods in 2022.
−Removed: The increase in interest income, on a tax equivalent basis, for the three and nine months ended September 30, 2023, as compared to the same time periods in 2022 is due primarily to additional interest rate increases by the Federal Reserve since March 2022, coupled with an improved mix of earning assets as excess cash was deployed into higher yielding assets since March 2022.
+Added: Interest income, on a tax equivalent basis, was $215,739 for the three months ended March 31, 2024, as compared to $186,799 for the same period in 2023.
+Added: The increase in interest income, on a tax equivalent basis, for the three months ended March 31, 2024, as compared to the same time period in 2023 is due primarily to interest rate increases by the Federal Reserve during 2023.
The following table presents the percentage of total average earning assets, by type and yield, for the periods presented:
1 unchanged sentence
Three Months Ended Three Months Ended
−Removed: September 30, September 30,
+Added: March 31, March 31,
2024 2023 2024 2023
4 unchanged sentences
Total earning assets 100.00 % 100.00 % 5.66 % 4.94 %
−Removed: Percentage of Total Average Earning Assets Yield
−Removed: Nine Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2023 2022 2023 2022
−Removed: Loans held for investment 77.22 % 70.54 % 5.89 % 4.20 %
−Removed: Loans held for sale 1.14 1.57 6.46 4.30
−Removed: Securities 17.91 20.88 2.00 1.70
−Removed: Interest-bearing balances with banks 3.73 7.01 5.25 0.78
−Removed: Total earning assets 100.00 % 100.00 % 5.18 % 3.44 %
−Removed: For the third quarter of 2023, interest income on loans held for investment, on a tax equivalent basis, increased $58,907 to $183,521 from $124,614 for the same period in 2022.
−Removed: For the nine months ended September 30, 2023, interest income on loans held for investment, on a tax equivalent basis, increased $193,813 to $523,040 from $329,227 in the same period in 2022.
−Removed: The Federal Reserve began to raise interest rates in March 2022, which positively impacted the Company’s loan pricing, and the year-to-date average balance of loans held for investment increased $1,392,357 from September 2022, thereby resulting in the increase in interest income on loans held for investment for the three and nine months ended September 30, 2023, as compared to the same periods in 2022.
+Added: For the first quarter of 2024, interest income on loans held for investment, on a tax equivalent basis, increased $30,670 to $194,640 from $163,970 for the same period in 2023.
+Added: The Federal Reserve continued to raise interest rates in 2023, which positively impacted the Company’s loan pricing, and the year-to-date average balance of loans held for investment increased $719,442 from March 2023, thereby resulting in the increase in interest income on loans held for investment for the three months ended March 31, 2024, as compared to the same period in 2023.
The impact from interest income collected on problem loans and purchase accounting adjustments on loans to total interest income on loans held for investment, loan yield and net interest margin is shown in the following table for the periods presented.
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2023 2022 2023 2022
+Added: Three Months Ended
Net interest income collected on problem loans $ 123 $ 392
Accretable yield recognized on purchased loans 800 885
−Removed: 1,290 1,317 3,049 4,573
Total impact to interest income on loans $ 923 $ 1,277
1 unchanged sentence
Impact to net interest margin 0.02 % 0.03 %
−Removed: (1) Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $821 and $713 for the third quarter of 2023 and 2022, respectively.
−Removed: The impact was $1,371 and $2,269
−Removed: for the nine months ended September 30, 2023 and 2022, respectively.
−Removed: This additional interest income increased total loan yield by three basis points for both the third quarter of 2023 and 2022, while increasing net interest margin by two basis points for the same respective periods.
−Removed: For the nine months ended September 30, 2023 and 2022, the additional interest income increased total loan yields by two and three basis points, respectively, while increasing net interest margin by one and two basis points, respectively.
−Removed: For the third quarter of 2023, interest income on loans held for sale (consisting of mortgage loans held for sale) increased $1,676 to $3,751 from $2,075 for the same period in 2022.
−Removed: For the nine months ended September 30, 2023, interest income on loans held for sale (consisting of mortgage loans held for sale), increased $954 to $8,478 from $7,524 for the same period in 2022.
−Removed: Investment income, on a tax equivalent basis, decreased $4,078 to $11,025 for the third quarter of 2023 from $15,103 for the third quarter of 2022.
−Removed: Investment income, on a tax equivalent basis, increased $1,611 to $41,205 for the nine months ended September 30, 2023 from $39,594 for the same period in 2022.
−Removed: The tax equivalent yield on the investment portfolio for the third quarter of 2023 was 1.85%, down 2 basis points from 1.87% for the same period in 2022.
−Removed: The tax equivalent yield on the investment portfolio for the nine months ended September 30, 2023 was 2.00%, up 30 basis points from 1.70% in the same period in 2022.
−Removed: The decrease in taxable equivalent yield on securities for the three months ended September 30, 2023 as compared to the same period in 2022 was due to the aforementioned sale of securities during the first nine months of 2023.
−Removed: The increase in taxable equivalent yield on securities for the nine months ended September 30, 2023 as compared to the same period in 2022 was due to purchases of higher yielding securities during 2022.
−Removed: The increase in yield led to the growth in investment income, on a tax equivalent basis.
−Removed: Interest expense was $78,294 for the third quarter of 2023 as compared to $12,815 for the same period in 2022.
−Removed: Interest expense for the nine months ended September 30, 2023 was $193,514 as compared to $33,282 for the same period in 2022.
−Removed: The following tables present, by type, the Company’s funding sources, which consist of total average deposits and borrowed funds, and the total cost of each funding source for the periods presented:
+Added: For the first quarter of 2024, interest income on loans held for sale (consisting of mortgage loans held for sale) increased $571 to $2,308 from $1,737 for the same period in 2023.
+Added: Investment income, on a tax equivalent basis, decreased $4,652 to $11,010 for the first quarter of 2024 from $15,662 for the first quarter of 2023.
+Added: The tax equivalent yield on the investment portfolio for the first quarter of 2024 was 2.04%, down 3 basis points from 2.07% for the same period in 2023.
+Added: The decrease in taxable equivalent investment income for the three months ended March 31, 2024 as compared to the same period in 2023 was due to our previously disclosed sale of securities during 2023 as well as the aforementioned securities sale in January 2024.
+Added: Interest expense was $89,889 for the first quarter of 2024 as compared to $48,270 for the same period in 2023.
+Added: The following table presents, by type, the Company’s funding sources, which consist of total average deposits and borrowed funds, and the total cost of each funding source for the periods presented:
Percentage of Total Average Deposits and Borrowed Funds Cost of Funds
Three Months Ended Three Months Ended
−Removed: September 30, September 30,
+Added: March 31, March 31,
2024 2023 2024 2023
8 unchanged sentences
Total deposits and borrowed funds 100.00 % 100.00 % 2.46 % 1.33 %
−Removed: Percentage of Total Average Deposits and Borrowed Funds Cost of Funds
−Removed: Nine Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2023 2022 2023 2022
−Removed: Noninterest-bearing demand 27.51 % 33.27 % — % — %
−Removed: Interest-bearing demand 42.12 45.96 1.95 0.27
−Removed: Savings 6.75 7.88 0.33 0.05
−Removed: Brokered deposits 4.86 — 4.99 —
−Removed: Time deposits 11.95 9.15 2.64 0.42
−Removed: Short-term borrowings 3.90 0.66 4.24 0.98
−Removed: Long-term Federal Home Loan Bank advances — — — 1.88
−Removed: Subordinated notes 2.15 2.30 5.61 4.39
−Removed: Other long term borrowings 0.76 0.78 7.93 4.66
−Removed: Total deposits and borrowed funds 100.00 % 100.00 % 1.75 % 0.31 %
−Removed: Interest expense on deposits was $70,906 and $7,241 for the three months ended September 30, 2023 and 2022, respectively.
+Added: Interest expense on deposits was $82,613 and $32,866 for the three months ended March 31, 2024 and 2023, respectively.
The cost of total deposits was 2.35% and 0.99% for the same respective periods.
−Removed: Interest expense on deposits was $155,163 and $17,896 for the nine months ended September 30, 2023 and 2022, respectively, and the cost of total deposits was 1.50% and 0.17% for the same respective periods.
−Removed: The increase in both deposit expense and cost is attributable to the Company’s efforts to offer competitive deposit rates in the rising interest rate environment and its decision to maintain additional on-balance sheet liquidity following the bank failures and broader industry concerns about bank liquidity that arose in March 2023.
+Added: The increase in both deposit expense and cost is attributable to the Company’s efforts to offer competitive deposit rates in the high interest rate environment and its decision to maintain additional on-balance sheet liquidity following the bank failures and broader industry concerns about bank liquidity that arose in March 2023.
The Company has continued its efforts to maintain non-interest bearing deposits.
1 unchanged sentence
however, the Company may rely on brokered deposits or wholesale borrowings when advantageous or otherwise deemed advisable due to market conditions.
−Removed: Interest expense on total borrowings was $7,388 and $5,574 for the three months ended September 30, 2023 and 2022, respectively.
−Removed: Interest expense on total borrowings was $38,351 and $15,386 for the nine months ended September 30, 2023 and 2022, respectively.
−Removed: The increase in interest expense is a result of higher average borrowings and interest rates primarily due to an increase in short-term FHLB borrowings during the first nine months of 2023.
−Removed: The repayment of FHLB borrowings during the second and third quarters of 2023 had a nominal impact to interest expense for the three and nine months ended September 30, 2023.
+Added: Interest expense on total borrowings was $7,276 and $15,404 for the three months ended March 31, 2024 and 2023, respectively.
+Added: The decrease in interest expense on borrowings is a result of the repayment of FHLB borrowings during 2023 and the first quarter of 2024.
A more detailed discussion of the cost of our funding sources is set forth below under the heading “Liquidity and Capital Resources” in this Item.
1 unchanged sentence
Noninterest Income to Average Assets
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2023 2022 2023 2022
−Removed: 0.88% 0.98% 0.72% 0.93%
+Added: Three Months Ended March 31,
Total noninterest income includes fees generated from deposit services and other fees and commissions, income from our insurance, wealth management and mortgage banking operations, realized gains and losses on the sale of securities and all other noninterest income.
Our focus is to develop and enhance our products that generate noninterest income in order to diversify revenue sources.
−Removed: Noninterest income was $38,200 for the third quarter of 2023 as compared to $41,186 for the same period in 2022.
−Removed: Noninterest income was $92,719 for the nine months ended September 30, 2023 as compared to $115,858 for the same period in 2022.
−Removed: The decrease over the three and nine month periods is primarily due to the decrease in mortgage banking income during the three and nine month periods and, with respect to the nine month period, the $22,438 loss on the sale of securities during June 2023.
+Added: Noninterest income was $41,381 for the first quarter of 2024 as compared to $37,293 for the same period in 2023.
+Added: The increase over the three month period is primarily due to the $3,472 gain on sale of MSRs during the first quarter of 2024, which is included in “Mortgage banking income” in the Consolidated Statements of Income.
Service charges on deposit accounts include maintenance fees on accounts, per item charges, account enhancement charges for additional packaged benefits and overdraft fees (which encompasses traditional overdraft fees as well as non-sufficient funds fees).
−Removed: Service charges on deposit accounts were $9,743 and $10,216 for the third quarter of 2023 and 2022, respectively, and $28,596 and $29,512 for the nine months ended September 30, 2023 and 2022, respectively.
−Removed: Overdraft fees, the largest component of service charges on deposits, were $5,065 for the three months ended September 30, 2023, as compared to $5,540
−Removed: for the same period in 2022.
−Removed: These fees were $14,734 for the nine months ended September 30, 2023 compared to $15,967 for the same period in 2022.
−Removed: The Company eliminated consumer non-sufficient funds fees as well as transfer fees to linked customer accounts effective January 1, 2023.
−Removed: The fees eliminated totaled approximately $1,500 for the third quarter of 2022 and $4,100 for the first nine months of 2022.
−Removed: Fees and commissions were $4,108 during the third quarter of 2023 as compared to $4,148 for the same period in 2022, and were $13,771 for the first nine months of 2023 as compared to $12,798 for the same period in 2022.
+Added: Service charges on deposit accounts were $10,506 and $9,120 for the first quarter of 2024 and 2023, respectively.
+Added: Overdraft fees, the largest component of service charges on deposits, were $5,256 for the three months ended March 31, 2024, as compared to $4,580 for the same period in 2023.
+Added: Fees and commissions were $3,949 during the first quarter of 2024 as compared to $4,676 for the same period in 2023.
Fees and commissions include fees related to deposit services, such as ATM fees and interchange fees on debit card transactions, and lending services, such as collateral management fees and unused commitment fees.
−Removed: For the third quarter of 2023, interchange fees were $2,337 as compared to $2,341 for the same period in 2022.
−Removed: Interchange fees were $7,130 for the nine months ended September 30, 2023 as compared to $7,419 for the same period in 2022.
+Added: For the first quarter of 2024, interchange fees were $2,130 as compared to $2,327 for the same period in 2023.
Through Renasant Insurance, we offer a range of commercial and personal insurance products through major insurance carriers.
−Removed: Income earned on insurance products was $3,264 and $3,108 for the three months ended September 30, 2023 and 2022, respectively, and was $8,519 and $8,253 for the nine months ended September 30, 2023 and 2022, respectively.
+Added: Income earned on insurance products was $2,716 and $2,446 for the three months ended March 31, 2024 and 2023, respectively.
Contingency income is a bonus received from the insurance underwriters and is based both on commission income and claims experience on our clients’ policies during the previous year.
Increases and decreases in contingency income are reflective of corresponding increases and decreases in the number of claims paid by insurance carriers.
−Removed: Contingency income, which is included in “Other noninterest income” in the Consolidated Statements of Income, was $7 and $10 for the three months ended September 30, 2023 and 2022, respectively, and $963 and $559 for the nine months ended September 30, 2023 and 2022, respectively.
+Added: Contingency income, which is included in “Other noninterest income” in the Consolidated Statements of Income, was $873 and $910 for the three months ended March 31, 2024 and 2023, respectively.
Our Wealth Management segment has two divisions:
4 unchanged sentences
The Financial Services division provides specialized products and services to our customers, which include fixed and variable annuities, mutual funds, and stocks offered through a third party provider.
−Removed: Wealth Management revenue was $5,986 for the third quarter of 2023 compared to $5,467 for the same period in 2022, and was $16,464 for the nine months ended September 30, 2023 compared to $17,102 for the same period in 2022.
−Removed: The market value of assets under management or administration was $4,999,504 and $4,842,723 at September 30, 2023 and September 30, 2022, respectively.
+Added: Wealth Management revenue was $5,669 for the first quarter of 2024 compared to $5,140 for the same period in 2023.
+Added: The market value of assets under management or administration was $5,386,011 and $4,980,887 at March 31, 2024 and March 31, 2023, respectively.
Mortgage banking income is derived from the origination and sale of mortgage loans and the servicing of mortgage loans that the Company has sold but retained the right to service.
Although loan fees and some interest income are derived from mortgage loans held for sale, the main source of income is gains from the sale of these loans in the secondary market.
−Removed: Interest rate lock commitments and originations of mortgage loans to be sold totaled $494,442 and $397,355, respectively, in the third quarter of 2023 compared to $636,987 and $359,444, respectively for the same period in 2022.
−Removed: Interest rate lock commitments and originations of mortgage loans to be sold totaled $1,734,035 and $1,057,277 in the nine months ended September 30, 2023 compared to $2,677,181 and $1,436,158 for the same period in 2022.
−Removed: The decrease in both interest rate lock commitments and, for the nine month comparative period, mortgage loan originations was due to material increases in mortgage interest rates from historically low rates, significantly dampening demand for mortgages nationwide.
−Removed: In the third quarter of 2022, the Company sold a portion of its mortgage servicing rights portfolio with a carrying value of $15,565 for a pre-tax gain of $2,960.
+Added: Interest rate lock commitments and originations of mortgage loans to be sold totaled $444,297 and $260,424, respectively, in the first quarter of 2024 compared to $629,833 and $258,946, respectively for the same period in 2023.
+Added: The decrease in interest rate lock commitments was due to continued increases in mortgage interest rates during 2023, significantly dampening demand for mortgages nationwide.
+Added: In the first quarter of 2024, the Company sold a portion of its mortgage servicing rights portfolio with a carrying value of $19,539 for a pre-tax gain of $3,472.
The table below presents the components of mortgage banking income included in noninterest income for the periods presented.
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2023 2022 2023 2022
+Added: Three Months Ended March 31,
Gain on sales of loans, net (1)
4 unchanged sentences
(1) Gain on sales of loans, net includes pipeline fair value adjustments
+Added: (2) Mortgage servicing income, net includes gain on sale of MSR
Bank-owned life insurance (“BOLI”) income is derived from changes in the cash surrender value of the bank-owned life insurance policies and proceeds received upon the death of covered individuals.
−Removed: BOLI income was $2,469 for the three months ended September 30, 2023 as compared to $2,296 for the same period in 2022, and $7,874 for the nine months ended September 30, 2023 as compared to $6,780 for the same period in 2022.
−Removed: The Company purchased an additional $80,000 in BOLI policies during the first quarter of 2022.
−Removed: No such purchases were made in the first nine months of 2023.
−Removed: Other noninterest income was $5,097 and $3,276 for the three months ended September 30, 2023 and 2022, respectively, and was $14,112 and $10,789 for the nine months ended September 30, 2023 and 2022, respectively.
+Added: BOLI income was $2,691 for the three months ended March 31, 2024 as compared to $3,003 for the same period in 2023.
+Added: Other noninterest income was $4,424 and $4,391 for the three months ended March 31, 2024 and 2023, respectively.
Other noninterest income includes income from our SBA banking division, our capital markets division and other miscellaneous income and can fluctuate based on production in our SBA banking and capital markets divisions and recognition of other seasonal income items.
1 unchanged sentence
Noninterest Expense to Average Assets
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2023 2022 2023 2022
−Removed: 2.48% 2.42% 2.52% 2.36%
−Removed: Noninterest expense was $107,669 and $101,574 for the third quarter of 2023 and 2022, respectively, and was $324,542 and $293,873 for the nine months ended September 30, 2023 and 2022, respectively.
−Removed: Salaries and employee benefits increased $2,995 to $69,458 for the third quarter of 2023 as compared to $66,463 for the same period in 2022.
−Removed: Salaries and employee benefits increased $15,645 to $209,927 for the nine months ended September 30, 2023 as compared to $194,282 for the same period in 2022.
−Removed: The increase in salaries and employee benefits is primarily due to increases in the minimum wage we pay our employees that were implemented in May 2022 along with annual merit increases implemented in April 2023.
−Removed: The acquisition of RBC added $4,682 to salaries and employee benefits expense in the first nine months of 2023.
−Removed: Data processing costs were $3,907 in the third quarter of 2023 as compared to $3,526 for the same period in 2022 and were $11,224 for the nine months ended September 30, 2023 as compared to $11,379 for the same period in 2022.
+Added: Three Months Ended March 31,
+Added: Noninterest expense was $112,912 and $109,208 for the first quarter of 2024 and 2023, respectively.
+Added: Salaries and employee benefits increased $1,638 to $71,470 for the first quarter of 2024 as compared to $69,832 for the same period in 2023.
+Added: The increase in salaries and employee benefits is primarily due to annual merit increases implemented in April 2023 offset by decreases in salaries and benefits within our mortgage division attributable to declines in mortgage production.
+Added: Data processing costs were $3,807 in the first quarter of 2024 as compared to $3,633 for the same period in 2023.
The Company continues to examine new and existing contracts to negotiate favorable terms to offset the increased variable cost components of our data processing costs, such as new accounts and increased transaction volume.
−Removed: Net occupancy and equipment expense for the third quarter of 2023 was $11,548, as compared to $11,266 for the same period in 2022.
−Removed: These expenses for the first nine months of 2023 were $34,818, as compared to $33,697 for the same period in 2022.
−Removed: For the third quarter of 2023 the Company experienced a net gain of $120 related to other real estate owned as compared to expenses of $34 for the same period in 2022.
−Removed: The Company experienced a net gain of $39 for the nine months ended September 30, 2023 as compared to a net gain of $394 for the same period in 2022.
−Removed: Expenses on other real estate owned included write downs of the carrying value to fair value on certain pieces of property held in other real estate owned of $18 and $110 for the first nine months of 2023 and 2022, respectively.
−Removed: For the nine months ended September 30, 2023 and 2022, other real estate owned with a cost basis of $2,544 and $1,847, respectively, was sold, resulting in a net gain of $289 and $611, respectively.
+Added: Net occupancy and equipment expense for the first quarter of 2024 was $11,389, as compared to $11,405 for the same period in 2023.
+Added: For the first quarter of 2024 the Company had expenses of $107 related to other real estate owned as compared to expenses of $30 for the same period in 2023.
+Added: Expenses on other real estate owned included write downs of the carrying value to fair value on certain pieces of property held in other real estate owned of $28 for the first three months of 2024.
+Added: There were no such write downs during the first quarter of 2023.
+Added: For the three months ended March 31, 2024 and 2023, other real estate owned with a cost basis of $119 and $552, respectively, was sold, resulting in a net gain of $13 and $95, respectively.
Professional fees include fees for legal and accounting services, such as routine litigation matters, external audit services as well as assistance in complying with newly-enacted and existing banking and governmental regulations.
−Removed: Professional fees were $3,338 for the third quarter of 2023 as compared to $3,087 for the same period in 2022, and $10,817 for the nine months ended September 30, 2023 as compared to $9,016 for the same period in 2022.
−Removed: Advertising and public relations expense was $3,474 for the third quarter of 2023 as compared to $3,229 for the same period in 2022, and $11,642 for the nine months ended September 30, 2023 as compared to $10,694 for the same period in 2022.
−Removed: During the nine months ended September 30, 2023 and 2022, the Company contributed approximately $1,292 and $1,350, respectively, to charitable organizations throughout Mississippi, Alabama and Georgia, which contributions are included in our advertising and public relations expense, for which it received a dollar-for-dollar tax credit.
−Removed: Amortization of intangible assets totaled $1,311 and $1,251 for the third quarter of 2023 and 2022, respectively, and $4,106 and $3,927 for the nine months ended September 30, 2023 and 2022, respectively.
+Added: Professional fees were $3,348 for the first quarter of 2024 as compared to $3,467 for the same period in 2023.
+Added: Advertising and public relations expense was $4,886 for the first quarter of 2024 as compared to $4,686 for the same period in 2023.
+Added: During the three months ended March 31, 2024 and 2023, the Company contributed approximately $1,055 and $1,067, respectively, to charitable organizations throughout Mississippi and Georgia, which contributions are included in our advertising and public relations expense, for which it received a dollar-for-dollar tax credit.
+Added: Amortization of intangible assets totaled $1,212 and $1,426 for the first quarter of 2024 and 2023.
This amortization relates to finite-lived intangible assets which are being amortized over the useful lives as determined at acquisition.
These finite-lived intangible assets have remaining estimated useful lives ranging from approximately 1 year to 7 years.
−Removed: Communication expenses, those expenses incurred for communication to clients and between employees, were $2,006 for the third quarter of 2023 as compared to $1,999 for the same period in 2022.
−Removed: Communication expenses were $6,212 for the nine months ended September 30, 2023 as compared to $5,930 for the same period in 2022.
−Removed: Other noninterest expense includes the provision for unfunded commitments, business development and travel expenses, other discretionary expenses, loan fees expense and other miscellaneous fees and operating expenses.
−Removed: Other noninterest expense was $12,747 and $35,835 for the three and nine months ended September 30, 2023 as compared to $10,719 and $23,923 for the same periods in 2022.
−Removed: The increase in other noninterest expense is primarily attributable to lower deferred loan origination
−Removed: expense in the first nine months of 2023 compared to the same period in 2022.
+Added: Communication expenses, those expenses incurred for communication to clients and between employees, were $2,024 for the first quarter of 2024 as compared to $1,980 for the same period in 2023.
+Added: Other noninterest expense includes business development and travel expenses, other discretionary expenses, loan fees expense and other miscellaneous fees and operating expenses.
+Added: Other noninterest expense was $14,669 for the three months ended March 31, 2024 as compared to $12,749 for the same period in 2023.
+Added: The increase in other noninterest expense is primarily attributable to lower mortgage deferred loan origination expense in the first quarter of 2024 compared to the same period in 2023.
The amount of loan origination expense deferred is directly correlated to the volume and mix of our loan production during the period.
−Removed: A negative provision (recovery) for unfunded commitments of $700 and $3,200 was recorded for the three and nine months ended September 30, 2023.
−Removed: There was no provision for unfunded commitments recorded for the third quarter of 2022 and a recovery of provision for unfunded commitments of $100 for the nine months ended September 30, 2022.
+Added: The Company also accrued $700 for an FDIC deposit insurance special assessment in the first quarter of 2024.
Efficiency Ratio
Efficiency Ratio
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2023 2022 2023 2022
+Added: Three Months Ended March 31,
Efficiency ratio 67.52 % 62.11 %
2 unchanged sentences
That is, the ratio is designed to reflect the percentage of one dollar that we must expend to generate a dollar of revenue.) The Company calculates this ratio by dividing noninterest expense by the sum of net interest income on a fully tax equivalent basis and noninterest income.
−Removed: The loss on the sale of securities reduced the efficiency ratio by 2.84 basis points for the nine months ended September 30, 2023.
We remain committed to aggressively managing our costs within the framework of our business model.
Our goal is to improve the efficiency ratio over time from currently reported levels as a result of revenue growth while at the same time controlling noninterest expenses.
−Removed: Income tax expense for the third quarter of 2023 and 2022 was $10,766 and $13,563, respectively, and $28,722 and $32,355 for the nine months ended September 30, 2023 and 2022, respectively.
−Removed: The Company recognized tax credits of approximately $1,292 in the first nine months of 2023 (as mentioned above in the advertising and public relations discussion) as compared to approximately $1,350 in the first nine months of 2022.
+Added: Income tax expense for the first quarter of 2024 and 2023 was $9,912 and $11,322, respectively.
+Added: The decline is primarily due to a decrease in pre-tax income.
Risk Management
25 unchanged sentences
The purchase price is applied to the outstanding loan balance.
−Removed: Any remaining balance is charged-off, which reduces the allowance for credit losses on loans.
+Added: Any remaining balance is charged-off, which reduces the allowance for credit
+Added: losses on loans.
Charge-offs reflect the realization of losses in the portfolio that were recognized previously through the provision for credit losses on loans.
The Company’s practice is to charge off estimated losses as soon as management believes the uncollectability of a loan balance is confirmed and such losses are reasonably quantified.
−Removed: Net charge-offs for the first nine months of 2023 were $10,566, or 0.12% of average loans (annualized), compared to net charge-offs of $4,763, or 0.06% of average loans (annualized), for the same period in 2022.
+Added: Net charge-offs for the first quarter of 2024 were $164, or 0.01% of average loans (annualized), compared to net charge-offs of $4,732, or 0.16% of average loans (annualized), for the same period in 2023.
The charge-offs were fully reserved for in the Company’s allowance for credit losses on loans.
21 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.
−Removed: To the extent the lives of the loans in the portfolio extend
−Removed: 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.
+Added: 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.
• For loans that do not share similar risk characteristics with other loans, an individual analysis is performed to determine the expected credit loss.
1 unchanged sentence
The fair value of collateral is initially based on external appraisals.
−Removed: Generally, collateral values for loans for which measurement of expected losses is dependent on the fair value of such collateral are updated every twelve months, either from external third parties or in-house certified appraisers.
+Added: Generally, collateral values for loans for which measurement of expected losses is dependent on the fair value of such collateral are updated every twelve months,
+Added: either from external third parties or in-house certified appraisers.
Third-party appraisals are obtained from a pre-approved list of independent, third-party, local appraisal firms.
6 unchanged sentences
The following table presents the allocation of the allowance for credit losses on loans by loan category and the percentage of loans in each category to total loans as of the dates presented:
−Removed: September 30, 2023 December 31, 2022 September 30, 2022
+Added: March 31, 2024 December 31, 2023 March 31, 2023
Balance % of Total Balance % of Total Balance % of Total
7 unchanged sentences
The provision for credit losses on loans charged to operating expense is an amount which, in the judgment of management, is necessary to maintain the allowance for credit losses on loans at a level that is believed to be adequate to meet the inherent risks of losses in our loan portfolio.
−Removed: The Company recorded a provision for credit losses of $5,315 in the third quarter of 2023 and $16,275 in the first nine months of 2023, as compared to $9,800 in the third quarter of 2022 and $13,300 in the first nine months of 2022.
+Added: The Company recorded a provision for credit losses on loans of $2,638 in the first quarter of 2024, as compared to $7,960 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.
−Removed: The provision activity during the first nine months months of 2023 as compared to the same period in 2022 was primarily driven by loan growth coupled with a slight deterioration in our economic forecast.
+Added: While credit metrics remained relatively stable, loan growth caused the Company’s model to indicate that the aforementioned provision for credit losses on loans was appropriate during the first quarter of 2024.
The table below reflects the activity in the allowance for credit losses on loans for the periods presented:
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2023 2022 2023 2022
+Added: Three Months Ended
Balance at beginning of period $ 198,578 $ 192,090
1 unchanged sentence
Commercial, financial, agricultural 349 529
−Removed: Lease financing 641 — 641 7
−Removed: Real estate – construction — — 57 —
Real estate – 1-4 family mortgage 82 3
4 unchanged sentences
Lease financing 8 5
−Removed: Real estate – construction 48 — 48 —
Real estate – 1-4 family mortgage 48 24
12 unchanged sentences
The table below reflects annualized net charge-offs (recoveries) to daily average loans outstanding, by loan category, during the periods presented:
−Removed: Nine Months Ended
−Removed: September 30, 2023 September 30, 2022
+Added: Three Months Ended
+Added: March 31, 2024 March 31, 2023
Net Charge-offs (Recoveries) Average Loans Annualized Net Charge-offs to Average Loans Net Charge-offs (Recoveries) Average Loans Annualized Net Charge-offs to Average Loans
7 unchanged sentences
The following table provides further details of the Company’s net charge-offs (recoveries) of loans secured by real estate for the periods presented:
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2023 2022 2023 2022
−Removed: Real estate – construction:
−Removed: Residential $ (48) $ — $ 9 $ —
−Removed: Total real estate – construction (48) — 9 —
+Added: Three Months Ended
Real estate – 1-4 family mortgage:
7 unchanged sentences
Non-owner occupied (3) 4,982
−Removed: Land development — (9) — (166)
Total real estate – commercial mortgage (7) 4,904
−Removed: Total net charge-offs (recoveries) of loans secured by real estate $ (307) $ 1,736 $ 4,794 $ 2,080
+Added: Total net charge-offs of loans secured by real estate $ 27 $ 4,883
Allowance for Credit Losses on Unfunded Commitments;
3 unchanged sentences
No credit loss estimate is reported for off-balance-sheet credit exposures that are unconditionally cancellable by the Company.
−Removed: A roll-forward of the allowance for credit losses on unfunded commitments is shown in the tables below.
−Removed: Three Months Ended September 30, 2023 2022
−Removed: Allowance for credit losses on unfunded loan commitments:
−Removed: Beginning balance $ 17,618 $ 19,935
−Removed: Recovery of provision for credit losses on unfunded loan commitments (included in other noninterest expense) (700) —
−Removed: Ending balance $ 16,918 $ 19,935
−Removed: Nine Months Ended September 30, 2023 2022
+Added: A roll-forward of the allowance for credit losses on unfunded commitments is shown in the table below.
+Added: Three Months Ended March 31, 2024 2023
Allowance for credit losses on unfunded loan commitments:
12 unchanged sentences
The following table provides details of the Company’s nonperforming assets as of the dates presented.
−Removed: September 30, 2023 December 31, 2022
+Added: March 31, 2024 December 31, 2023
Nonaccruing loans $ 73,774 $ 68,816
7 unchanged sentences
The following table presents nonperforming loans by loan category as of the dates presented:
−Removed: September 30,
−Removed: 2023 December 31, 2022 September 30,
+Added: 2024 December 31, 2023 March 31,
Commercial, financial, agricultural $ 6,588 $ 6,282 $ 11,382
−Removed: Lease financing 1,048 — —
Real estate – construction:
Residential — — 152
−Removed: Commercial — — 1
Total real estate – construction — — 152
12 unchanged sentences
Total nonperforming loans $ 74,225 $ 69,370 $ 75,290
−Removed: Total nonperforming loans as a percentage of total loans were 0.58% as of September 30, 2023 as compared to 0.49% and 0.50% as of December 31, 2022 and September 30, 2022, respectively.
−Removed: The Company’s coverage ratio, or its allowance for credit losses on loans as a percentage of nonperforming loans, was 282.24% as of September 30, 2023 as compared to 337.73% as of December 31, 2022 and 312.10% as of September 30, 2022.
−Removed: Management has evaluated loans classified as nonperforming and believes that all nonperforming loans have been adequately reserved for in the allowance for credit losses at September 30, 2023.
+Added: Total nonperforming loans as a percentage of total loans were 0.59% as of March 31, 2024 as compared to 0.56% and 0.64% as of December 31, 2023 and March 31, 2023, respectively.
+Added: The Company’s coverage ratio, or its allowance for credit losses on loans as a percentage of nonperforming loans, was 270.87% as of March 31, 2024 as compared to 286.26% as of December 31, 2023 and 259.39% as of March 31, 2023.
+Added: Management has evaluated loans classified as nonperforming and believes that all nonperforming loans have been adequately reserved for in the allowance for credit losses at March 31, 2024.
Management also continually monitors past due loans for potential credit quality deterioration.
−Removed: Total loans 30-89 days past due but still accruing interest were $13,641, or 0.11% of total loans, at September 30, 2023 as compared to $58,703, or 0.51% of total loans, at December 31, 2022 and $26,103, or 0.25% of total loans, at September 30, 2022.
−Removed: 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.
−Removed: At September 30, 2023, these loan modifications were performing in accordance with their modified terms and unused commitments totaled $721.
+Added: Total loans 30-89 days past due but still accruing interest were $59,632, or 0.48% of total loans, at March 31, 2024 as compared to $54,031, or 0.44% of total loans, at December 31, 2023 and $50,992, or 0.43% of total loans, at March 31, 2023.
+Added: 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.
+Added: 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.
+Added: The total amortized cost basis of loans that were experiencing financial difficulty, modified during the three months ended March 31, 2024 and 2023, were $10,693 and $1,184, respectively.
+Added: Unused commitments totaled $85 at March 31, 2024.
+Added: There were no unused commitments at March 31, 2023.
Upon the Company’s determination that a modified loan has been subsequently deemed uncollectible, the loan, or portion of the loan, is charged off, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted accordingly.
−Removed: See Note 4, “Allowance for Credit Losses,” in the Notes to Consolidated Financial Statements of the Company in Item 1, Financial Statements for more information on the allowance for credit losses.
−Removed: The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the nine months ended September 30, 2023, which are required to be disclosed under ASU 2022-02, by class and by type of modification.
−Removed: The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of loans is also presented below.
−Removed: Nine Months Ended
−Removed: Interest Rate Reduction Term Extension Payment Delay Total % Total Loans by Class
−Removed: Commercial, financial, agricultural $ — $ 1,209 $ — $ 1,209 0.07 %
−Removed: Real estate – construction:
−Removed: Residential — 3,751 — 3,751 1.25
−Removed: Total real estate – construction — 3,751 — 3,751 0.27
−Removed: Real estate – 1-4 family mortgage:
−Removed: Home equity 7 — — 7 —
−Removed: Total real estate – 1-4 family mortgage 7 — — 7 —
−Removed: Real estate – commercial mortgage:
−Removed: Owner-occupied 149 96 277 522 0.03
−Removed: Non-owner occupied 1,008 — — 1,008 0.03
−Removed: Total real estate – commercial mortgage 1,157 96 277 1,530 0.03
−Removed: Loans, net of unearned income $ 1,164 $ 5,056 $ 277 $ 6,497 0.05 %
−Removed: The following table presents the weighted average financial effect of the loan modifications requiring disclosure under ASU 2022-02 by class of financing receivable for the nine months ended September 30, 2023.
−Removed: Nine Months Ended
−Removed: Interest Rate Reduction (in basis points) Term Extension (in months) Payment Delay (in months)
−Removed: Commercial, financial, agricultural — 2.1 —
−Removed: Real estate – construction:
−Removed: Residential — 4.7 —
−Removed: Real estate – 1-4 family mortgage:
−Removed: Home equity 300 — —
−Removed: Real estate – commercial mortgage:
−Removed: Owner-occupied 68 8.4 3.0
−Removed: Non-owner occupied 12 — —
+Added: For more information about loan modifications made to borrowers experiencing financial difficulty, see the information under the heading “Certain Modifications to Borrowers Experiencing Financial Difficulty” in Note 3, “Loans,” in the Notes to Consolidated Financial Statements of the Company in Item 1, Financial Statements.
The following table provides details of the Company’s other real estate owned, net of valuation allowance and direct write-downs, as of the dates presented:
−Removed: September 30,
−Removed: 2023 December 31, 2022 September 30,
+Added: 2024 December 31, 2023 March 31,
Residential real estate $ 1,244 $ 1,211 $ 551
8 unchanged sentences
Dispositions (119) (552)
−Removed: Balance at September 30 $ 9,258 $ 2,412
−Removed: Other real estate owned with a cost basis of $2,544 was sold during the nine months ended September 30, 2023, resulting in a net gain of $289, while other real estate owned with a cost basis of $1,847 was sold during the nine months ended September 30, 2022, resulting in a net gain of $611.
+Added: Other (528) (16)
+Added: Balance at March 31 $ 9,142 $ 4,818
+Added: Other real estate owned with a cost basis of $119 was sold during the three months ended March 31, 2024, resulting in a net gain of $13, while other real estate owned with a cost basis of $552 was sold during the three months ended March 31, 2023, resulting in a net gain of $95.
Interest Rate Risk
16 unchanged sentences
An increase in EVE due to a specified rate change indicates an improvement in the long-term earnings capacity of the balance sheet assuming that the rate change remains in effect over the life of the current balance sheet.
−Removed: The following table presents the projected impact of a change in interest rates on (1) static EVE and (2) earnings at risk (that is, net interest income) for the 1-12 and 13-24 month periods commencing October 1, 2023, in each case as compared to the result under rates present in the market on September 30, 2023.
+Added: The following table presents the projected impact of a change in interest rates on (1) static EVE and (2) earnings at risk (that is, net interest income) for the 1-12 and 13-24 month periods commencing April 1, 2024, in each case as compared to the result under rates present in the market on March 31, 2024.
The changes in interest rates assume an instantaneous and parallel shift in the yield curve and do not account for changes in the slope of the yield curve.
6 unchanged sentences
-200 (8.60)% (5.75)% (8.22)%
−Removed: The rate shock results for the net interest income simulations for the next 24 months produce an asset sensitive position at September 30, 2023.
+Added: The rate shock results for the net interest income simulations for the next 24 months produce an asset sensitive position at March 31, 2024.
The preceding measures assume no change in the size or asset/liability compositions of the balance sheet, and they do not reflect future actions the ALCO may undertake in response to such changes in interest rates.
13 unchanged sentences
We may also access the brokered deposit market where rates are favorable to other sources of liquidity (especially in light of collateral requirements for certain borrowings) and core deposits are not sufficient for meeting our current and anticipated liquidity needs.
−Removed: During the first nine months of 2023, brokered deposits increased by $524,642 as compared to the balance at December 31, 2022.
−Removed: The Bank obtained brokered deposits in the amount of $1,206,856 during the first nine months of 2023 and paid down $682,214.
+Added: During the first quarter of 2024, brokered deposits decreased by $119,070 as compared to the balance at December 31, 2023.
+Added: The Bank obtained brokered deposits in the amount of $120,345 during the first quarter of 2024 and paid down brokered deposits of $239,355 during the same period.
Management continually monitors the Bank’s liquidity and non-core dependency ratios to ensure compliance with targets established by the ALCO.
3 unchanged sentences
Securities within our investment portfolio are also used to secure certain deposit types, short-term borrowings and derivative instruments.
−Removed: At September 30, 2023, securities with a carrying value of $807,284 were pledged to secure government, public fund and trust deposits and as collateral for short-term borrowings and derivative instruments as compared to securities with a carrying value of $842,601 similarly pledged at December 31, 2022.
+Added: At March 31, 2024, securities with a carrying value of $813,304 were pledged to secure government, public fund and trust deposits and as collateral for short-term borrowings and derivative instruments as compared to securities with a carrying value of $895,044 similarly pledged at December 31, 2023.
Other sources available for meeting liquidity needs include federal funds purchased, short-term and long-term advances from the FHLB and borrowings from the Federal Reserve Discount Window.
Interest is charged at the prevailing market rate on federal funds purchased and FHLB advances.
−Removed: There were $100,000 in short-term borrowings from the FHLB at September 30, 2023, as compared to $700,000 at December 31, 2022, as we used the proceeds of our sale of securities in the third quarter to pay down our short-term FHLB advances.
+Added: There were $100,000 in short-term borrowings from the FHLB at March 31, 2024, as compared to $300,000 at December 31, 2023.
Long-term funds obtained from the FHLB 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 of such borrowing compares favorably to the rates that we would be required to pay to attract deposits.
−Removed: There were no outstanding long-term advances with the FHLB at September 30, 2023 or December 31, 2022.
−Removed: The total amount of the remaining credit available to us from the FHLB at September 30, 2023 was $3,111,063.
−Removed: The credit available at the Federal Reserve Discount Window at September 30, 2023 was $585,406, with no borrowings currently outstanding.
+Added: There were no outstanding long-term advances with the FHLB at March 31, 2024 or December 31, 2023.
+Added: The total amount of the remaining
+Added: credit available to us from the FHLB at March 31, 2024 was $2,850,966.
+Added: The credit available at the Federal Reserve Discount Window at March 31, 2024 was $592,236 with no borrowings currently outstanding.
We also maintain lines of credit with other commercial banks totaling $160,000.
These are unsecured lines of credit with the majority maturing at various times within the next twelve months.
−Removed: There were no amounts outstanding under these lines of credit at September 30, 2023 or December 31, 2022.
+Added: There were no amounts outstanding under these lines of credit at March 31, 2024 or December 31, 2023.
Finally, we can access the capital markets to meet liquidity needs.
The Company maintains a shelf registration statement with the Securities and Exchange Commission (“SEC”).
−Removed: The shelf registration statement, which was effective upon filing, allows the Company to raise capital from time to time through the sale of common stock, preferred stock, depositary shares, debt
−Removed: securities, rights, warrants and units, or a combination thereof, subject to market conditions.
+Added: The shelf registration statement, which was effective upon filing, allows the Company to raise capital from time to time through the sale of common stock, preferred stock, depositary shares, debt securities, rights, warrants and units, or a combination thereof, subject to market conditions.
Specific terms and prices will be determined at the time of any offering under a separate prospectus supplement that the Company will file with the SEC at the time of the specific offering.
2 unchanged sentences
We have also assumed subordinated notes as part of acquisitions.
−Removed: The carrying value of subordinated notes, net of unamortized debt issuance costs, was $314,655 at September 30, 2023.
+Added: The carrying value of subordinated notes, net of unamortized debt issuance costs, was $314,834 at March 31, 2024.
The following table presents, by type, the Company’s funding sources, which consist of total average deposits and borrowed funds, and the total cost of each funding source for the periods presented:
Percentage of Total Average Deposits and Borrowed Funds Cost of Funds
−Removed: Nine Months Ended Nine Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Three Months Ended
+Added: March 31, March 31,
2024 2023 2024 2023
5 unchanged sentences
Short-term borrowings 0.79 5.78 1.20 4.31
−Removed: Long-term Federal Home Loan Bank advances — — — 1.88
Subordinated notes 2.16 2.15 5.83 5.33
1 unchanged sentence
Total deposits and borrowed funds 100.00 % 100.00 % 2.46 % 1.33 %
−Removed: The estimated amount of uninsured and uncollateralized deposits at September 30, 2023 was $4,204,524.
−Removed: Collateralized public funds over the FDIC insurance limits were $1,451,674 at September 30, 2023.
+Added: The estimated amount of uninsured and uncollateralized deposits at March 31, 2024 was $4,392,773.
+Added: Collateralized public funds over FDIC insurance limits were $1,569,410 at March 31, 2024.
Our strategy in choosing funds is focused on minimizing cost in the context of our balance sheet composition, interest rate risk position and liquidity forecast.
2 unchanged sentences
We constantly monitor our funds position and evaluate the effect that various funding sources have on our financial position.
−Removed: Cash and cash equivalents were $741,156 at September 30, 2023, as compared to $479,500 at September 30, 2022.
−Removed: Cash provided by investing activities for the nine months ended September 30, 2023 was $89,172, as compared to cash used in investing activities of $1,587,457 for the nine months ended September 30, 2022.
−Removed: Proceeds from the sale, maturity or call of securities within our investment portfolio were $697,076 for the nine months ended September 30, 2023, as compared to $372,484 for the same period in 2022.
−Removed: A portion of the securities portfolio was sold during the second quarter, resulting in proceeds of $488,981 which were used to pay off short-term FHLB borrowings.
−Removed: Other proceeds were primarily used to fund loan growth in 2023, while they were primarily reinvested into the investment portfolio in 2022.
−Removed: Purchases of investment securities were $9,646 during the first nine months of 2023, as compared to $800,260 for the same period in 2022.
−Removed: Cash provided by financing activities for the nine months ended September 30, 2023 was $27,868, as compared to cash used in financing activities of $274,115 for the same period in 2022.
−Removed: Deposits increased $670,144 and decreased $473,600 for the nine months ended September 30, 2023 and 2022, respectively.
+Added: Cash and cash equivalents were $844,400 at March 31, 2024, as compared to $847,697 at March 31, 2023.
+Added: Cash provided by investing activities for the three months ended March 31, 2024 was $29,968, as compared to cash used in investing activities of $153,231 for the three months ended March 31, 2023.
+Added: Proceeds from the sale, maturity or call of securities within our investment portfolio were $223,492 for the three months ended March 31, 2024, as compared to $70,766 for the same period in 2023.
+Added: A portion of the securities portfolio was sold during the first quarter, resulting in proceeds of $177,185 of which a portion were used to purchase higher yielding securities, while the remainder was used to fund loan growth.
+Added: Proceeds in the first quarter of 2023 were primarily used to fund loan growth.
+Added: Purchases of investment securities were $46,975 during the first three months of 2024.
+Added: There were no purchases of investment securities for the same period in 2023.
+Added: Cash used in financing activities for the three months ended March 31, 2024 was $51,976, as compared to cash provided by financing activities of $432,318 for the same period in 2023.
+Added: Deposits increased $160,378 and $425,054 for the three months ended March 31, 2024 and 2023, respectively.
Restrictions on Bank Dividends, Loans and Advances
2 unchanged sentences
A Mississippi bank with earned surplus in excess of three times capital stock may pay a dividend, subject to the approval of the Mississippi Department of Banking and Consumer Finance (the “DBCF”).
−Removed: In addition, the FDIC also has the authority to prohibit the Bank from engaging in business practices that the FDIC considers to be unsafe or unsound, which, depending on
−Removed: the financial condition of the bank, could include the payment of dividends.
+Added: In addition, the FDIC also has the authority to prohibit the Bank from engaging in business practices that the FDIC considers to be unsafe or unsound, which, depending on the financial condition of the bank, could include the payment of dividends.
Accordingly, the approval of the DBCF is required prior to the Bank paying dividends to the Company, and under certain circumstances the approval of the FDIC may be required.
Federal Reserve regulations also limit the amount the Bank may loan to the Company unless such loans are collateralized by specific obligations.
−Removed: At September 30, 2023, the maximum amount available for transfer from the Bank to the Company in the form of loans was $186,960.
+Added: At March 31, 2024, the maximum amount available for transfer from the Bank to the Company in the form of loans was $190,482.
The Company maintains a $3,000 line of credit collateralized by cash with the Bank.
−Removed: There were no amounts outstanding under this line of credit at September 30, 2023.
−Removed: These restrictions did not have any impact on the Company’s ability to meet its cash obligations in the nine months ended September 30, 2023, nor does management expect such restrictions to materially impact the Company’s ability to meet its currently-anticipated cash obligations.
+Added: There were no amounts outstanding under this line of credit at March 31, 2024.
+Added: These restrictions did not have any impact on the Company’s ability to meet its cash obligations in the three months ended March 31, 2024, nor does management expect such restrictions to materially impact the Company’s ability to meet its currently-anticipated cash obligations.
Loan Commitments and Other Off-Balance Sheet Arrangements
6 unchanged sentences
The Company’s unfunded loan commitments and standby letters of credit outstanding were as follows as of the dates presented:
−Removed: September 30, 2023 December 31, 2022
+Added: March 31, 2024 December 31, 2023
Loan commitments $ 3,032,017 $ 3,091,997
8 unchanged sentences
The Company manages its credit risk, or potential risk of default by its commercial customers, through credit limit approval and monitoring procedures.
−Removed: At September 30, 2023, the Company had notional amounts of $404,646 on interest rate contracts with corporate customers and $401,910 in offsetting interest rate contracts with other financial institutions to mitigate the Company’s rate exposure on its corporate customers’ contracts and certain fixed rate loans.
+Added: At March 31, 2024, the Company had notional amounts of $631,264 on interest rate contracts with corporate customers and $631,264 in offsetting interest rate contracts with other financial institutions to mitigate the Company’s rate exposure on its corporate customers’ contracts and certain fixed rate loans.
Additionally, the Company enters into interest rate lock commitments with its customers to mitigate the interest rate risk associated with the commitments to fund fixed-rate and adjustable rate residential mortgage loans and also enters into forward commitments to sell residential mortgage loans to secondary market investors.
The Company also enters into interest rate swap contracts and interest rate collars on its FHLB borrowings and its junior subordinated debentures that are accounted for as cash flow hedges.
−Removed: Under interest rate swap contracts, the Company pays a fixed rate of interest and receives a variable rate of interest, while the collar hedging strategy stabilizes interest rate fluctuation by setting both a floor and a cap.
−Removed: The Company entered into an interest rate collar on forecasted borrowings in June 2022 with a 2.25% floor and 4.57% cap, which is accounted for as a cash flow hedge.
−Removed: The Company entered into a second interest rate collar in October 2022 with a 2.75% floor and 4.75% cap.
−Removed: Additionally, the Company entered into an interest rate swap contract on its subordinated notes that is accounted for as a fair value hedge.
+Added: Under each of these contracts, the Company pays a fixed rate of interest and receives a variable rate of interest.
+Added: The Company entered into an interest rate swap contract on its
+Added: subordinated notes that is accounted for as a fair value hedge.
Under this contract, the Company pays a variable rate of interest and receives a fixed rate of interest.
1 unchanged sentence
Shareholders’ Equity and Regulatory Matters
−Removed: Total shareholders’ equity of the Company was $2,233,323 at September 30, 2023 compared to $2,136,016 at December 31, 2022.
−Removed: Book value per share was $39.78 and $38.18 at September 30, 2023 and December 31, 2022, respectively.
−Removed: The growth in shareholders’ equity was attributable to reductions in accumulated other comprehensive loss and current period earnings, offset by dividends declared.
−Removed: In October 2022, the Company’s Board of Directors approved a stock repurchase program, authorizing the Company to repurchase up to $100,000 of its outstanding common stock, which expired in October 2023 and was replaced with a new stock repurchase program, authorizing the Company to repurchase up to $100,000 of its outstanding common stock, either in open market purchases or privately-negotiated transactions.
−Removed: The new repurchase program will remain in effect for one year or, if earlier, the repurchase of the entire amount of common stock authorized to be repurchased.
−Removed: The Company did not repurchase any of its common stock under the stock repurchase plan in the first nine months of 2023.
−Removed: The Company has junior subordinated debentures with a carrying value of $112,744 at September 30, 2023, of which $109,153 is included in the Company’s Tier 1 capital.
−Removed: Federal Reserve guidelines limit the amount of securities that, similar to our junior subordinated debentures, are includable in Tier 1 capital, but these guidelines did not impact the debentures we include in Tier 1 capital at September 30, 2023.
+Added: Total shareholders’ equity of the Company was $2,322,350 at March 31, 2024 compared to $2,297,383 at December 31, 2023.
+Added: Book value per share was $41.25 and $40.92 at March 31, 2024 and December 31, 2023, respectively.
+Added: The growth in shareholders’ equity was attributable to current period earnings and changes in accumulated other comprehensive income, offset by dividends declared.
+Added: In October 2023, the Company’s Board of Directors approved a stock repurchase program, authorizing the Company to repurchase up to $100,000 of its outstanding common stock, either in open market purchases or privately-negotiated transactions.
+Added: The program will remain in effect through October 2024 or, if earlier, the repurchase of the entire amount of common stock authorized to be repurchased.
+Added: The Company did not repurchase any of its common stock under the stock repurchase plan in the first quarter of 2024.
+Added: The Company has junior subordinated debentures with a carrying value of $113,213 at March 31, 2024, of which $109,622 is included in the Company’s Tier 1 capital.
+Added: Federal Reserve guidelines limit the amount of securities that, similar to our junior subordinated debentures, are includable in Tier 1 capital, but these guidelines did not impact the debentures we include in Tier 1 capital at March 31, 2024.
Although our 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 we make any acquisition of a financial institution now that we have exceeded $15,000,000 in assets, we will lose Tier 1 treatment of our junior subordinated debentures.
−Removed: The Company has subordinated notes with a par value of $340,000 at September 30, 2023, of which $336,551 is included in the Company’s Tier 2 capital.
+Added: The Company has subordinated notes with a par value of $336,400 at March 31, 2024, of which $333,397 is included in the Company’s Tier 2 capital.
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.
19 unchanged sentences
Amount Ratio Amount Ratio Amount Ratio
−Removed: September 30, 2023
+Added: March 31, 2024
Renasant Corporation:
32 unchanged sentences
We have identified certain accounting estimates that involve significant judgment and estimates which can have a material impact on our financial condition or results of operations.
−Removed: Our accounting policies are more fully described in Note 1,
−Removed: “Significant Accounting Policies,” in the Notes to Consolidated Financial Statements of the Company in Item 8, Financial Statements and Supplementary Data, in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on February 24, 2023.
−Removed: Actual amounts and values as of the balance sheet dates may be materially different than the amounts and values reported due to the inherent uncertainty in the estimation process.
+Added: Our accounting policies are more fully described in Note 1, “Significant Accounting Policies,” in the Notes to Consolidated Financial Statements of the Company in Item 8, Financial Statements and Supplementary Data, in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 23, 2024.
+Added: Actual amounts and values as of the balance sheet dates may be materially different from the amounts and values reported due to the inherent uncertainty in the estimation process.
Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date.
5 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.