RENASANT CORP 10-Q

Item 1. FINANCIAL STATEMENTS Renasant Corporation and Subsidiaries Consolidated Balance Sheets (In Thousands, Except Share Data) (Unaudited) March 31, 2024 December 31, 2023 Assets Cash and due from banks $ 174,349 $ 206,680 Interest-bearing balances with banks 670,051 594,671 Cash and cash equivalents 844,400 801,351 Securities held to maturity (net of allowance for credit losses of $ 32 at each of March 31, 2024 and December 31, 2023) (fair value of $ 1,085,085 and $ 1,121,830 , respectively) 1,199,111 1,221,464 Securities available for sale, at fair value 764,486 923,279 Loans held for sale, at fair value 191,440 179,756 Loans held for investment, net of unearned income 12,500,525 12,351,230 Allowance for credit losses on loans ( 201,052 ) ( 198,578 ) Loans, net 12,299,473 12,152,652 Premises and equipment, net 282,193 283,195 Other real estate owned, net 9,142 9,622 Goodwill 991,665 991,665 Other intangible assets, net 17,583 18,795 Bank-owned life insurance 385,186 382,584 Mortgage servicing rights 71,596 91,688 Other assets 289,466 304,484 Total assets $ 17,345,741 $ 17,360,535 Liabilities and shareholders’ equity Liabilities Deposits Noninterest-bearing $ 3,516,164 $ 3,583,675 Interest-bearing 10,720,999 10,493,110 Total deposits 14,237,163 14,076,785 Short-term borrowings 108,121 307,577 Long-term debt 428,047 429,400 Other liabilities 250,060 249,390 Total liabilities 15,023,391 15,063,152 Shareholders’ equity Preferred stock, $ 0.01 par value – 5,000,000 shares authorized; no shares issued and outstanding — — Common stock, $ 5.00 par value – 150,000,000 shares authorized; 59,296,725 shares issued; 56,304,860 and 56,142,207 shares outstanding, respectively 296,483 296,483 Treasury stock, at cost – 2,991,865 and 3,154,518 shares, respectively ( 99,683 ) ( 105,249 ) Additional paid-in capital 1,303,613 1,308,281 Retained earnings 978,880 952,124 Accumulated other comprehensive loss, net of taxes ( 156,943 ) ( 154,256 ) Total shareholders’ equity 2,322,350 2,297,383 Total liabilities and shareholders’ equity $ 17,345,741 $ 17,360,535 See Notes to Consolidated Financial Statements. 1 Table of Contents Renasant Corporation and Subsidiaries Consolidated Statements of Income (Unaudited) (In Thousands, Except Share Data) Three Months Ended March 31, 2024 2023 Interest income Loans $ 194,698 $ 163,524 Securities Taxable 9,505 13,253 Tax-exempt 1,195 1,838 Other 7,781 5,430 Total interest income 213,179 184,045 Interest expense Deposits 82,613 32,866 Borrowings 7,276 15,404 Total interest expense 89,889 48,270 Net interest income 123,290 135,775 Provision for credit losses on loans 2,638 7,960 Recovery of credit losses on unfunded commitments ( 200 ) ( 1,500 ) Provision for credit losses 2,438 6,460 Net interest income after provision for credit losses 120,852 129,315 Noninterest income Service charges on deposit accounts 10,506 9,120 Fees and commissions 3,949 4,676 Insurance commissions 2,716 2,446 Wealth management revenue 5,669 5,140 Mortgage banking income 11,370 8,517 Gain on debt extinguishment 56 — BOLI income 2,691 3,003 Other 4,424 4,391 Total noninterest income 41,381 37,293 Noninterest expense Salaries and employee benefits 71,470 69,832 Data processing 3,807 3,633 Net occupancy and equipment 11,389 11,405 Other real estate owned 107 30 Professional fees 3,348 3,467 Advertising and public relations 4,886 4,686 Intangible amortization 1,212 1,426 Communications 2,024 1,980 Other 14,669 12,749 Total noninterest expense 112,912 109,208 Income before income taxes 49,321 57,400 Income taxes 9,912 11,322 Net income $ 39,409 $ 46,078 Basic earnings per share $ 0.70 $ 0.82 Diluted earnings per share $ 0.70 $ 0.82 Cash dividends per common share $ 0.22 $ 0.22 See Notes to Consolidated Financial Statements. 2 Table of Contents Renasant Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (Unaudited) (In Thousands) Three Months Ended March 31, 2024 2023 Net income $ 39,409 $ 46,078 Other comprehensive income, net of tax: Securities available for sale: Unrealized holding (losses) gains on securities ( 4,634 ) 15,531 Amortization of unrealized holding losses on securities transferred to the held to maturity category 2,438 2,328 Total securities available for sale ( 2,196 ) 17,859 Derivative instruments: Unrealized holding losses on derivative instruments ( 570 ) ( 1,232 ) Total derivative instruments ( 570 ) ( 1,232 ) Defined benefit pension and post-retirement benefit plans: Amortization of net actuarial loss recognized in net periodic pension cost 79 86 Total defined benefit pension and post-retirement benefit plans 79 86 Other comprehensive (loss) income, net of tax ( 2,687 ) 16,713 Comprehensive income $ 36,722 $ 62,791 See Notes to Consolidated Financial Statements. 3 Table of Contents Renasant Corporation and Subsidiaries Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (In Thousands, Except Share Data) Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total Three Months Ended March 31, 2024 Shares Amount Balance at January 1, 2024 56,142,207 $ 296,483 $ ( 105,249 ) $ 1,308,281 $ 952,124 $ ( 154,256 ) $ 2,297,383 Net income — — — — 39,409 — 39,409 Other comprehensive loss — — — — — ( 2,687 ) ( 2,687 ) Comprehensive income 36,722 Cash dividends ($ 0.22 per share) — — — — ( 12,653 ) — ( 12,653 ) Issuance of common stock for stock-based compensation awards 162,653 — 5,566 ( 8,660 ) — — ( 3,094 ) Stock-based compensation expense — — — 3,992 — — 3,992 Balance at March 31, 2024 56,304,860 $ 296,483 $ ( 99,683 ) $ 1,303,613 $ 978,880 $ ( 156,943 ) $ 2,322,350 Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total Three Months Ended March 31, 2023 Shares Amount Balance at January 1, 2023 55,953,104 $ 296,483 $ ( 111,577 ) $ 1,302,422 $ 857,725 $ ( 209,037 ) $ 2,136,016 Net income — — — — 46,078 — 46,078 Other comprehensive income — — — — — 16,713 16,713 Comprehensive income 62,791 Cash dividends ($ 0.22 per share) — — — — ( 12,561 ) — ( 12,561 ) Issuance of common stock for stock-based compensation awards 120,554 — 4,018 ( 6,409 ) — — ( 2,391 ) Stock-based compensation expense — — — 3,445 — — 3,445 Balance at March 31, 2023 56,073,658 $ 296,483 $ ( 107,559 ) $ 1,299,458 $ 891,242 $ ( 192,324 ) $ 2,187,300 See Notes to Consolidated Financial Statements. 4 Table of Contents Renasant Corporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) (In Thousands) Three Months Ended March 31, 2024 2023 Operating activities Net income $ 39,409 $ 46,078 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Provision for credit losses 2,438 6,460 Depreciation, amortization and accretion 8,097 9,237 Deferred income tax expense 1,706 2,667 Proceeds from sale of MSR 23,011 — Gain on sale of MSR ( 3,472 ) — Funding of mortgage loans held for sale ( 260,424 ) ( 258,946 ) Proceeds from sales of mortgage loans held for sale 250,399 212,755 Gains on sales of mortgage loans held for sale ( 4,535 ) ( 4,769 ) Debt prepayment benefit ( 56 ) — Losses on sales of premises and equipment 50 2 Stock-based compensation expense 3,992 3,445 Decrease (increase) in other assets 9,904 ( 10,945 ) Increase in other liabilities ( 5,462 ) ( 13,366 ) Net cash provided by (used in) operating activities 65,057 ( 7,382 ) Investing activities Purchases of securities available for sale ( 46,975 ) — Proceeds from sales of securities available for sale 177,185 — Proceeds from call/maturities of securities available for sale 22,148 45,342 Proceeds from call/maturities of securities held to maturity 24,159 25,424 Net increase in loans ( 148,854 ) ( 195,617 ) Purchases of premises and equipment ( 3,296 ) ( 8,237 ) Proceeds from sales of premises and equipment 256 — Net change in FHLB stock 5,120 ( 22,130 ) Proceeds from sales of other assets 132 647 Other, net 93 1,340 Net cash provided by (used in) investing activities 29,968 ( 153,231 ) Financing activities Net decrease in noninterest-bearing deposits ( 67,511 ) ( 313,879 ) Net increase in interest-bearing deposits 227,889 738,933 Net (decrease) increase in short-term borrowings ( 199,456 ) 19,825 Repayment of long-term debt ( 245 ) — Cash paid for dividends ( 12,653 ) ( 12,561 ) Net cash (used in) provided by financing activities ( 51,976 ) 432,318 Net increase in cash and cash equivalents 43,049 271,705 Cash and cash equivalents at beginning of period 801,351 575,992 Cash and cash equivalents at end of period $ 844,400 $ 847,697 Supplemental disclosures Cash paid for interest $ 91,121 $ 41,239 Cash paid for income taxes $ — $ 17,443 Noncash transactions: Transfers of loans to other real estate owned $ 195 $ 3,623 Recognition of operating right-of-use assets $ 1,157 $ 531 Recognition of operating lease liabilities $ 1,157 $ 531 See Notes to Consolidated Financial Statements. 5 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 1 – Summary of Significant Accounting Policies (In Thousands) Nature of Operations : Renasant Corporation (referred to herein as the “Company”) owns and operates Renasant Bank (“Renasant Bank” or the “Bank”), Renasant Insurance, Inc., Park Place Capital Corporation and Continental Republic Capital, LLC (doing business as “Republic Business Credit”). Through its subsidiaries, the Company offers a diversified range of financial, wealth management, fiduciary and insurance services to its retail and commercial customers from offices located throughout the Southeast and offers factoring and asset-based lending on a nationwide basis. Basis of Presentation : The accompanying unaudited consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information regarding the Company’s significant accounting policies, refer to the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission on February 23, 2024. Use of Estimates : The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates, and such differences may be material. Impact of Recently-Issued Accounting Standards and Pronouncements : In March 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-02, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” (“ASU 2023-02”) , which permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. ASU 2023-02 was effective on January 1, 2024. The adoption of this accounting pronouncement will have no impact on the Company’s historical financial statements but could influence the Company’s decisions with respect to investments in certain tax credits prospectively. In October 2023, FASB issued ASU 2023-06, “Disclosure Improvements” (“ASU 2023-06”), which amends the disclosure requirements related to various subtopics in the FASB Accounting Standards Codification (the “Codification”). ASU 2023-06 adds a number of disclosure requirements to the Codification in response to the Securities and Exchange Commission (“SEC”) initiative to update and simplify disclosure requirements. ASU 2023-06 is to be applied prospectively, and early adoption is prohibited. For SEC reporting entities, the effective dates will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entities. ASU 2023-06 is not expected to have significant impact on our financial statements. In November 2023, FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which amends the disclosure requirements related to segment reporting primarily through enhanced disclosure about significant segment expenses and by requiring disclosure of segment information on an annual and interim basis. ASU 2023-07 was effective January 1, 2024 and did not have a significant impact on our financial statements or segment disclosures. In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which enhances the transparency and decision usefulness of income tax disclosures. ASU 2023-09 will require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. Entities will also be required to disclose income/(loss) from continuing operations before income tax expense/(benefit) disaggregated between domestic and foreign, as well as income tax expense/(benefit) from continuing operations disaggregated by federal, state and foreign. ASU 2023-09 is effective January 1, 2025 and is not expected to have a significant impact on our financial statements. 6 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 2 – Securities (In Thousands, Except Number of Securities) The amortized cost and fair value of securities available for sale were as follows as of the dates presented in the tables below. There was no allowance for credit losses allocated to any of the Company’s available for sale securities as of March 31, 2024 or December 31, 2023. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2024 Obligations of states and political subdivisions $ 21,669 $ 88 $ ( 1,994 ) $ 19,763 Residential mortgage backed securities: Government agency mortgage backed securities 198,253 99 ( 26,073 ) 172,279 Government agency collateralized mortgage obligations 431,344 — ( 90,453 ) 340,891 Commercial mortgage backed securities: Government agency mortgage backed securities 6,023 — ( 679 ) 5,344 Government agency collateralized mortgage obligations 137,524 — ( 22,702 ) 114,822 Other debt securities 115,235 583 ( 4,431 ) 111,387 $ 910,048 $ 770 $ ( 146,332 ) $ 764,486 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2023 Obligations of states and political subdivisions $ 36,374 $ 119 $ ( 1,883 ) $ 34,610 Residential mortgage backed securities: Government agency mortgage backed securities 301,400 172 ( 24,968 ) 276,604 Government agency collateralized mortgage obligations 485,164 — ( 85,883 ) 399,281 Commercial mortgage backed securities: Government agency mortgage backed securities 6,029 — ( 637 ) 5,392 Government agency collateralized mortgage obligations 161,299 24 ( 21,965 ) 139,358 Other debt securities 72,383 109 ( 4,458 ) 68,034 $ 1,062,649 $ 424 $ ( 139,794 ) $ 923,279 7 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) The amortized cost and fair value of securities held to maturity were as follows as of the dates presented: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2024 Obligations of states and political subdivisions $ 287,255 $ 51 $ ( 37,550 ) $ 249,756 Residential mortgage backed securities Government agency mortgage backed securities 414,485 — ( 24,465 ) 390,020 Government agency collateralized mortgage obligations 379,244 — ( 36,971 ) 342,273 Commercial mortgage backed securities: Government agency mortgage backed securities 16,977 — ( 3,056 ) 13,921 Government agency collateralized mortgage obligations 44,360 — ( 7,411 ) 36,949 Other debt securities 56,822 — ( 4,656 ) 52,166 $ 1,199,143 $ 51 $ ( 114,109 ) $ 1,085,085 Allowance for credit losses - held to maturity securities ( 32 ) Held to maturity securities, net of allowance for credit losses $ 1,199,111 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2023 Obligations of states and political subdivisions $ 288,154 $ 74 $ ( 33,688 ) $ 254,540 Residential mortgage backed securities Government agency mortgage backed securities 426,264 — ( 20,314 ) 405,950 Government agency collateralized mortgage obligations 387,208 — ( 31,670 ) 355,538 Commercial mortgage backed securities: Government agency mortgage backed securities 16,983 — ( 2,972 ) 14,011 Government agency collateralized mortgage obligations 44,514 — ( 6,977 ) 37,537 Other debt securities 58,373 — ( 4,119 ) 54,254 $ 1,221,496 $ 74 $ ( 99,740 ) $ 1,121,830 Allowance for credit losses - held to maturity securities ( 32 ) Held to maturity securities, net of allowance for credit losses $ 1,221,464 Securities sold were as follows for the three months ended March 31, 2024. The Company intended to sell these securities as of December 31, 2023, and completed the sale in January 2024. Therefore, the Company impaired the securities and recognized the loss in net income as of December 31, 2023. There were no securities sold during the first quarter of 2023. Carrying Value Immediately Prior to Sale Net Proceeds Impairment Recognized in December 2023 Three months ended March 31, 2024 Obligations of states and political subdivisions $ 12,301 $ 11,360 $ ( 941 ) Residential mortgage backed securities: Government agency mortgage backed securities 107,389 95,922 ( 11,467 ) Government agency collateralized mortgage obligations 48,300 43,990 ( 4,310 ) Commercial mortgage backed securities: Government agency collateralized mortgage obligations 28,547 25,913 ( 2,634 ) $ 196,537 $ 177,185 $ ( 19,352 ) 8 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) At March 31, 2024 and December 31, 2023, securities with a carrying value of $ 799,198 and $ 880,715 , respectively, were pledged to secure government, public and trust deposits. Securities with a carrying value of $ 14,106 and $ 14,329 were pledged as collateral for short-term borrowings and derivative instruments at March 31, 2024 and December 31, 2023, respectively. The amortized cost and fair value of securities at March 31, 2024 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties. Held to Maturity Available for Sale Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ — $ — $ 2,274 $ 2,231 Due after one year through five years 7,705 7,249 35,762 36,003 Due after five years through ten years 112,024 99,428 38,877 34,712 Due after ten years 224,348 195,245 52,283 51,365 Residential mortgage backed securities: Government agency mortgage backed securities 414,485 390,020 198,253 172,279 Government agency collateralized mortgage obligations 379,244 342,273 431,344 340,891 Commercial mortgage backed securities: Government agency mortgage backed securities 16,977 13,921 6,023 5,344 Government agency collateralized mortgage obligations 44,360 36,949 137,524 114,822 Other debt securities — — 7,708 6,839 $ 1,199,143 $ 1,085,085 $ 910,048 $ 764,486 9 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) The following tables present the age of gross unrealized losses and fair value by investment category for which an allowance for credit losses has not been recorded as of the dates presented: Less than 12 Months 12 Months or More Total # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Available for Sale: March 31, 2024 Obligations of states and political subdivisions — $ — $ — 7 $ 13,253 $ ( 1,994 ) 7 $ 13,253 $ ( 1,994 ) Residential mortgage backed securities: Government agency mortgage backed securities 4 6,720 ( 45 ) 36 161,215 ( 26,028 ) 40 167,935 ( 26,073 ) Government agency collateralized mortgage obligations — — — 37 340,806 ( 90,453 ) 37 340,806 ( 90,453 ) Commercial mortgage backed securities: Government agency mortgage backed securities — — — 2 5,344 ( 679 ) 2 5,344 ( 679 ) Government agency collateralized mortgage obligations 2 7,694 ( 87 ) 25 107,128 ( 22,615 ) 27 114,822 ( 22,702 ) Other debt securities — — — 21 37,296 ( 4,431 ) 21 37,296 ( 4,431 ) Total 6 $ 14,414 $ ( 132 ) 128 $ 665,042 $ ( 146,200 ) 134 $ 679,456 $ ( 146,332 ) December 31, 2023 Obligations of states and political subdivisions 3 $ 2,914 $ ( 2 ) 9 $ 15,198 $ ( 1,881 ) 12 $ 18,112 $ ( 1,883 ) Residential mortgage backed securities: Government agency mortgage backed securities 1 806 ( 25 ) 35 166,963 ( 24,943 ) 36 167,769 ( 24,968 ) Government agency collateralized mortgage obligations — — — 37 354,574 ( 85,883 ) 37 354,574 ( 85,883 ) Commercial mortgage backed securities: Government agency mortgage backed securities — — — 2 5,392 ( 637 ) 2 5,392 ( 637 ) Government agency collateralized mortgage obligations — — — 25 108,575 ( 21,965 ) 25 108,575 ( 21,965 ) Other debt securities 2 3,099 ( 195 ) 19 35,072 ( 4,263 ) 21 38,171 ( 4,458 ) Total 6 $ 6,819 $ ( 222 ) 127 $ 685,774 $ ( 139,572 ) 133 $ 692,593 $ ( 139,794 ) 10 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Less than 12 Months 12 Months or More Total # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Held to Maturity: March 31, 2024 Obligations of states and political subdivisions 1 $ 2,372 $ ( 16 ) 127 $ 245,670 $ ( 37,534 ) 128 $ 248,042 $ ( 37,550 ) Residential mortgage backed securities: Government agency mortgage backed securities — — — 70 390,021 ( 24,465 ) 70 390,021 ( 24,465 ) Government agency collateralized mortgage obligations — — — 18 342,272 ( 36,971 ) 18 342,272 ( 36,971 ) Commercial mortgage backed securities: Government agency mortgage backed securities — — — 1 13,921 ( 3,056 ) 1 13,921 ( 3,056 ) Government agency collateralized mortgage obligations — — — 9 36,949 ( 7,411 ) 9 36,949 ( 7,411 ) Other debt securities — — — 10 52,167 ( 4,656 ) 10 52,167 ( 4,656 ) Total 1 $ 2,372 $ ( 16 ) 235 $ 1,081,000 $ ( 114,093 ) 236 $ 1,083,372 $ ( 114,109 ) December 31, 2023 Obligations of states and political subdivisions 2 $ 2,807 $ ( 25 ) 126 $ 249,995 $ ( 33,663 ) 128 $ 252,802 $ ( 33,688 ) Residential mortgage backed securities: Government agency mortgage backed securities — — — 70 405,950 ( 20,314 ) 70 405,950 ( 20,314 ) Government agency collateralized mortgage obligations — — — 18 355,538 ( 31,670 ) 18 355,538 ( 31,670 ) Commercial mortgage backed securities: Government agency mortgage backed securities — — — 1 14,011 ( 2,972 ) 1 14,011 ( 2,972 ) Government agency collateralized mortgage obligations — — — 9 37,537 ( 6,977 ) 9 37,537 ( 6,977 ) Other debt securities — — — 10 54,254 ( 4,119 ) 10 54,254 ( 4,119 ) Total 2 $ 2,807 $ ( 25 ) 234 $ 1,117,285 $ ( 99,715 ) 236 $ 1,120,092 $ ( 99,740 ) The Company evaluates its available for sale investment securities in an unrealized loss position on a quarterly basis. If the Company intends to sell the security or it is more likely than not that it will be required to sell before recovery, the entire unrealized loss is recorded as a loss within noninterest income in the Consolidated Statements of Income along with a corresponding adjustment to the amortized cost basis of the security. If the Company does not intend to sell the security and it is not more likely than not that it will be required to sell the security before recovery of its amortized cost basis, the Company evaluates if any of the unrealized loss is related to a potential credit loss. The amount related to credit loss, if any, is recognized in earnings as a provision for credit loss and a corresponding allowance for credit losses is established; each is calculated as the difference between the estimate of the discounted future contractual cash flows and the amortized cost basis of the security. A number of qualitative and quantitative factors are considered by management in the estimate of the discounted future contractual cash flows, including the financial condition of the underlying issuer, current and projected deferrals or defaults and credit ratings by nationally recognized statistical rating agencies. The remaining difference between the fair value and the amortized cost basis of the security is considered the amount related to other market factors and is recognized in other comprehensive income, net of tax. As of March 31, 2024, the Company does not intend to sell any of the securities in an unrealized loss position, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be maturity. Furthermore, more than 90% of available for sale securities have the explicit or implicit backing of the federal government. Performance of these securities has been in line with broader market price performance, indicating that increases in market-based, risk-free rates, and not credit-related factors, are driving losses. When determining the fair value of 11 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) the contractual cash flows for municipal and corporate securities, the Company considers historical experience with credit sensitive securities, current market conditions, the financial condition of the underlying issuer, current credit ratings, ratings changes and outlook, explicit and implicit guarantees, or insurance programs. Based upon its review of these factors as of March 31, 2024, the Company determined that all such losses resulted from factors not deemed credit-related. As a result, no credit-related impairment was recognized in current earnings, and all unrealized losses for available for sale securities were recorded in other comprehensive income (loss). See Note 12, “Other Comprehensive Income (Loss)” for more information on the Company’s unrealized losses on securities. The allowance for credit losses on held to maturity securities was $ 32 at March 31, 2024 and December 31, 2023. The Company monitors the credit quality of debt securities held to maturity using bond investment grades assigned by third party ratings agencies. Updated investment grades are obtained as they become available from agencies. As of March 31, 2024, all of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies. Note 3 – Loans (In Thousands, Except Number of Loans) For purposes of this Note 3, all references to “loans” mean loans excluding loans held for sale. The following is a summary of loans and leases as of the dates presented: March 31, 2024 December 31, 2023 Commercial, financial, agricultural $ 1,869,408 $ 1,871,821 Lease financing 113,070 122,807 Real estate – construction: Residential 271,966 269,616 Commercial 971,569 1,063,781 Total real estate – construction 1,243,535 1,333,397 Real estate – 1-4 family mortgage: Primary 2,404,521 2,422,482 Home equity 525,346 522,688 Rental/investment 387,556 373,755 Land development 111,863 120,994 Total real estate – 1-4 family mortgage 3,429,286 3,439,919 Real estate – commercial mortgage: Owner-occupied 1,678,911 1,648,961 Non-owner occupied 3,970,881 3,733,174 Land development 103,438 104,415 Total real estate – commercial mortgage 5,753,230 5,486,550 Installment loans to individuals 97,592 103,523 Gross loans 12,506,121 12,358,017 Unearned income ( 5,596 ) ( 6,787 ) Loans, net of unearned income $ 12,500,525 $ 12,351,230 Past Due and Nonaccrual Loans Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, the recognition of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer and other retail loans are typically charged-off no later than the time the loan is 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Loans may be placed on nonaccrual status regardless of whether or not 12 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) such loans are considered past due. For loans that are placed on nonaccrual status or charged-off, all interest accrued for the current year but not collected is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. 13 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) The following tables provide an aging of past due accruing and nonaccruing loans, segregated by class, as of the dates presented: Accruing Loans Nonaccruing Loans 30-89 Days Past Due 90 Days or More Past Due Current Loans Total Loans 30-89 Days Past Due 90 Days or More Past Due Current Loans Total Loans Total Loans March 31, 2024 Commercial, financial, agricultural $ 3,276 $ 227 $ 1,859,544 $ 1,863,047 $ 195 $ 1,200 $ 4,966 $ 6,361 $ 1,869,408 Lease financing — — 113,070 113,070 — — — — 113,070 Real estate – construction: Residential 225 — 271,741 271,966 — — — — 271,966 Commercial — — 971,569 971,569 — — — — 971,569 Total real estate – construction 225 — 1,243,310 1,243,535 — — — — 1,243,535 Real estate – 1-4 family mortgage: Primary 38,827 219 2,315,561 2,354,607 13,360 22,688 13,866 49,914 2,404,521 Home equity 3,829 — 518,610 522,439 697 1,050 1,160 2,907 525,346 Rental/investment 124 — 385,261 385,385 316 1,786 69 2,171 387,556 Land development 25 — 111,661 111,686 — 177 — 177 111,863 Total real estate – 1-4 family mortgage 42,805 219 3,331,093 3,374,117 14,373 25,701 15,095 55,169 3,429,286 Real estate – commercial mortgage: Owner-occupied 5,965 — 1,670,777 1,676,742 — 231 1,938 2,169 1,678,911 Non-owner occupied 3,048 — 3,958,352 3,961,400 — — 9,481 9,481 3,970,881 Land development 3,388 — 99,855 103,243 2 89 104 195 103,438 Total real estate – commercial mortgage 12,401 — 5,728,984 5,741,385 2 320 11,523 11,845 5,753,230 Installment loans to individuals 925 5 96,263 97,193 39 92 268 399 97,592 Unearned income — — ( 5,596 ) ( 5,596 ) — — — — ( 5,596 ) Loans, net of unearned income $ 59,632 $ 451 $ 12,366,668 $ 12,426,751 $ 14,609 $ 27,313 $ 31,852 $ 73,774 $ 12,500,525 14 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Accruing Loans Nonaccruing Loans 30-89 Days Past Due 90 Days or More Past Due Current Loans Total Loans 30-89 Days Past Due 90 Days or More Past Due Current Loans Total Loans Total Loans December 31, 2023 Commercial, financial, agricultural $ 1,098 $ 483 $ 1,864,441 $ 1,866,022 $ 1,310 $ 1,296 $ 3,193 $ 5,799 $ 1,871,821 Lease financing 687 — 122,120 122,807 — — — — 122,807 Real estate – construction: Residential — — 269,616 269,616 — — — — 269,616 Commercial — — 1,063,781 1,063,781 — — — — 1,063,781 Total real estate – construction — — 1,333,397 1,333,397 — — — — 1,333,397 Real estate – 1-4 family mortgage: Primary 33,679 — 2,344,629 2,378,308 9,454 19,394 15,326 44,174 2,422,482 Home equity 3,004 — 516,835 519,839 987 868 994 2,849 522,688 Rental/investment 9 58 371,508 371,575 43 1,786 351 2,180 373,755 Land development 206 — 120,769 120,975 — 19 — 19 120,994 Total real estate – 1-4 family mortgage 36,898 58 3,353,741 3,390,697 10,484 22,067 16,671 49,222 3,439,919 Real estate – commercial mortgage: Owner-occupied 4,867 — 1,640,721 1,645,588 131 1,904 1,338 3,373 1,648,961 Non-owner occupied 9,161 — 3,714,239 3,723,400 6,740 — 3,034 9,774 3,733,174 Land development 90 — 104,025 104,115 — 259 41 300 104,415 Total real estate – commercial mortgage 14,118 — 5,458,985 5,473,103 6,871 2,163 4,413 13,447 5,486,550 Installment loans to individuals 1,230 13 101,932 103,175 13 4 331 348 103,523 Unearned income — — ( 6,787 ) ( 6,787 ) — — — — ( 6,787 ) Loans, net of unearned income $ 54,031 $ 554 $ 12,227,829 $ 12,282,414 $ 18,678 $ 25,530 $ 24,608 $ 68,816 $ 12,351,230 Certain Modifications to Borrowers Experiencing Financial Difficulty Certain modifications of loans made to borrowers experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay (including extension of the amortization period), or a term extension, excluding covenant waivers and modification of contingent acceleration clauses, are required to be disclosed in accordance with ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). All modifications for the three months ended March 31, 2024 and 2023 and which met the disclosure criteria in ASU 2022-02 were performing in accordance with their modified terms at March 31, 2024 and 2023, respectively. Unused commitments totaled $ 85 at March 31, 2024. There were no unused commitments at March 31, 2023. Upon the Company’s determination that a modification has been subsequently deemed uncollectible, the loan, or portion of the loan, is charged off, the amortized cost basis of the loan is reduced by the uncollectible amount, and the allowance for credit losses is adjusted accordingly. See Note 4, “Allowance for Credit Losses,” for more information on the allowance for credit losses. 15 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) The following tables present the amortized cost basis of loans that were experiencing financial difficulty, modified during the three months ended March 31, 2024 and 2023, respectively and required to be disclosed under ASU 2022-02, by class of financing receivable and by type of modification. The percentage of the amortized cost basis for each class of disclosed modifications as compared to the amortized cost basis of each class of loans is also presented below. Three Months Ended March 31, 2024 Interest Rate Reduction Term Extension Payment Delay Term Extension and Payment Delay Interest Rate Reduction and Term Extension Total % Total Loans by Class Commercial, financial, agricultural $ 1,741 $ 165 $ — $ 517 $ — $ 2,423 0.13 % Real estate – 1-4 family mortgage: Primary — 33 246 — — 279 0.01 Real estate – commercial mortgage: Owner-occupied 7,431 187 — — 270 7,888 0.47 Non-owner occupied — — 89 — — 89 — Total real estate – commercial mortgage 7,431 187 89 — 270 7,977 0.14 Installment loans to individuals — — 14 — — 14 0.01 Loans, net of unearned income $ 9,172 $ 385 $ 349 $ 517 $ 270 $ 10,693 0.09 % Note: payment delay includes extension of the amortization period. Three Months Ended March 31, 2023 Interest Rate Reduction % Total Loans by Class Real estate – commercial mortgage: Owner-occupied $ 155 0.01 % Non-owner occupied 1,029 0.03 Loans, net of unearned income $ 1,184 0.01 % The following tables present the weighted average financial effect of loan modifications requiring disclosure under ASU 2022-02 by class of financing receivable for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 Interest Rate Reduction (in basis points) Term Extension (in months) Payment Delay (in months) Commercial, financial, agricultural 39 7.5 — Real estate – 1-4 family mortgage: Primary — 24.0 35.7 Real estate – commercial mortgage: Owner-occupied 47 10.0 — Non-owner occupied — — 9.0 Installment loans to individuals — — 17.0 Note: payment delay includes extension of the amortization period. Three months ended March 31, 2024 Loan Type Financial Effect Combination - Term Extension and Payment Delay Commercial, financial, agricultural Extended the term and delayed the payment 42 months Combination - Interest Rate Reduction and Term Extension Real Estate - Commercial Mortgage - Owner-Occupied Reduced the interest rate by 275 basis points and extended the term 21 months 16 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note: payment delay includes extension of the amortization period. Three Months Ended March 31, 2023 Interest Rate Reduction (in basis points) Real estate – commercial mortgage: Owner-occupied 68 Non-owner occupied 12 Credit Quality For loans with a commercial purpose, internal risk-rating grades are assigned by lending, credit administration and loan review personnel, based on an analysis of the financial and collateral strength and other credit attributes underlying each loan. Management analyzes the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the portfolio balances of commercial and commercial real estate secured loans. Loan grades range between 10 and 95 , with 10 being loans with the least credit risk. Loans within the “Pass” grade (those with a risk rating between 10 and 60 ) generally have a lower risk of loss and therefore a lower risk factor applied to the loan balances. The “Special Mention” grade (those with a risk rating of 70 ) represents a loan where a significant adverse risk-modifying action is anticipated in the near term and, if left uncorrected, could result in deterioration of the credit quality of the loan. Loans that migrate toward the “Substandard” grade (those with a risk rating between 80 and 95 ) generally have a higher risk of loss and therefore a higher risk factor applied to those related loan balances. The following tables present the Company’s loan portfolio by year of origination and internal risk-rating grades as of the dates presented: Term Loans Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Total Loans March 31, 2024 Commercial, Financial, Agricultural $ 77,044 $ 290,663 $ 270,335 $ 156,083 $ 94,343 $ 82,457 $ 873,299 $ 4,834 $ 1,849,058 Pass 69,435 289,225 255,011 155,263 93,524 77,012 796,122 3,761 1,739,353 Special Mention 44 814 222 299 172 473 44,848 1 46,873 Substandard 7,565 624 15,102 521 647 4,972 32,329 1,072 62,832 Lease Financing Receivables $ 5,619 $ 30,940 $ 46,897 $ 11,487 $ 5,441 $ 6,380 $ — $ — $ 106,764 Pass 5,619 29,491 42,561 11,211 3,791 5,928 — — 98,601 Special Mention — 1,449 3,898 276 1,650 452 — — 7,725 Substandard — — 438 — — — — — 438 Real Estate - Construction $ 78,762 $ 296,194 $ 549,456 $ 224,073 $ — $ 364 $ 1,063 $ — $ 1,149,912 Residential 47,902 118,273 10,741 — — 364 1,063 — 178,343 Pass 47,734 115,241 9,072 — — 364 1,063 — 173,474 Special Mention 168 2,750 — — — — — — 2,918 Substandard — 282 1,669 — — — — — 1,951 Commercial 30,860 177,921 538,715 224,073 — — — — 971,569 Pass 30,860 165,618 538,715 224,073 — — — — 959,266 Special Mention — 12,303 — — — — — — 12,303 Substandard — — — — — — — — — Real Estate - 1-4 Family Mortgage $ 37,476 $ 140,317 $ 163,320 $ 92,100 $ 39,290 $ 45,732 $ 30,963 $ 1,999 $ 551,197 Primary 1,136 7,431 8,127 6,158 3,420 9,860 1,901 886 38,919 Pass 1,136 7,239 7,940 5,714 3,420 9,535 1,901 886 37,771 Special Mention — — — — — 28 — — 28 Substandard — 192 187 444 — 297 — — 1,120 Home Equity — 1,028 10 981 — — 22,387 58 24,464 17 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Term Loans Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Pass — 1,028 10 981 — — 22,184 — 24,203 Special Mention — — — — — — 203 — 203 Substandard — — — — — — — 58 58 Rental/Investment 20,318 95,046 126,021 72,768 35,505 32,292 4,489 1,055 387,494 Pass 20,261 94,436 125,868 72,157 33,685 31,500 4,489 806 383,202 Special Mention — 61 46 197 43 49 — — 396 Substandard 57 549 107 414 1,777 743 — 249 3,896 Land Development 16,022 36,812 29,162 12,193 365 3,580 2,186 — 100,320 Pass 16,022 36,775 29,162 12,193 365 3,479 2,186 — 100,182 Special Mention — — — — — 101 — — 101 Substandard — 37 — — — — — — 37 Real Estate - Commercial Mortgage $ 212,539 $ 711,453 $ 1,693,169 $ 1,115,209 $ 719,748 $ 1,066,371 $ 178,775 $ 43,804 $ 5,741,068 Owner-Occupied 58,853 261,181 366,383 309,977 210,035 414,837 54,321 3,195 1,678,782 Pass 58,853 257,650 349,540 307,144 208,132 403,233 49,955 2,925 1,637,432 Special Mention — 306 7,324 880 140 6,572 — — 15,222 Substandard — 3,225 9,519 1,953 1,763 5,032 4,366 270 26,128 Non-Owner Occupied 140,443 433,821 1,293,909 793,498 505,910 643,075 119,774 40,427 3,970,857 Pass 140,440 429,833 1,291,004 774,632 501,667 577,219 119,774 32,053 3,866,622 Special Mention 3 1,326 2,723 18,509 4,068 22,198 — — 48,827 Substandard — 2,662 182 357 175 43,658 — 8,374 55,408 Land Development 13,243 16,451 32,877 11,734 3,803 8,459 4,680 182 91,429 Pass 13,243 16,010 29,184 11,512 3,665 8,239 4,656 182 86,691 Special Mention — 417 3,316 35 — — — — 3,768 Substandard — 24 377 187 138 220 24 — 970 Installment loans to individuals $ 49 $ — $ — $ — $ — $ — $ — $ — $ 49 Pass 49 — — — — — — — 49 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total loans subject to risk rating $ 411,489 $ 1,469,567 $ 2,723,177 $ 1,598,952 $ 858,822 $ 1,201,304 $ 1,084,100 $ 50,637 $ 9,398,048 Pass 403,652 1,442,546 2,678,067 1,574,880 848,249 1,116,509 1,002,330 40,613 9,106,846 Special Mention 215 19,426 17,529 20,196 6,073 29,873 45,051 1 138,364 Substandard 7,622 7,595 27,581 3,876 4,500 54,922 36,719 10,023 152,838 Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Loans December 31, 2023 Commercial, Financial, Agricultural $ 312,902 $ 289,264 $ 162,535 $ 98,894 $ 51,162 $ 38,518 $ 883,302 $ 19,440 $ 1,856,017 Pass 311,312 288,249 161,902 97,771 50,936 32,169 870,792 19,338 1,832,469 Special Mention 893 364 10 294 — 291 914 63 2,829 Substandard 697 651 623 829 226 6,058 11,596 39 20,719 Lease Financing Receivables $ 32,842 $ 49,628 $ 12,317 $ 13,553 $ 5,969 $ 1,700 $ — $ — $ 116,009 Pass 32,842 47,050 12,317 11,735 5,443 1,395 — — 110,782 18 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Watch — 2,578 — 1,818 526 305 — — 5,227 Substandard — — — — — — — — — Real Estate - Construction $ 320,889 $ 581,201 $ 308,442 $ 16,066 $ — $ 1,823 $ 1,225 $ — $ 1,229,646 Residential 149,399 12,883 1,989 — — 369 1,225 — 165,865 Pass 146,535 10,147 1,989 — — 369 1,225 — 160,265 Special Mention 2,415 — — — — — — — 2,415 Substandard 449 2,736 — — — — — — 3,185 Commercial 171,490 568,318 306,453 16,066 — 1,454 — — 1,063,781 Pass 142,917 568,318 306,453 16,066 — 1,454 — — 1,035,208 Special Mention 28,573 — — — — — — — 28,573 Substandard — — — — — — — — — 19 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Real Estate - 1-4 Family Mortgage $ 145,568 $ 176,724 $ 100,757 $ 41,542 $ 19,753 $ 30,783 $ 30,889 $ 1,834 $ 547,850 Primary 8,512 8,729 6,194 3,943 1,792 8,573 3,272 915 41,930 Pass 8,134 8,511 5,859 3,943 1,781 8,140 3,272 915 40,555 Special Mention 183 — — — — 34 — — 217 Substandard 195 218 335 — 11 399 — — 1,158 Home Equity 1,107 10 996 — — 16 20,628 74 22,831 Pass 1,107 10 996 — — 1 20,628 — 22,742 Special Mention — — — — — — — — — Substandard — — — — — 15 — 74 89 Rental/Investment 89,760 129,241 75,457 37,171 17,817 18,721 4,678 845 373,690 Pass 89,135 128,939 74,330 35,388 16,670 18,109 4,678 583 367,832 Special Mention 63 47 256 4 50 42 — — 462 Substandard 562 255 871 1,779 1,097 570 — 262 5,396 Land Development 46,189 38,744 18,110 428 144 3,473 2,311 — 109,399 Pass 46,151 38,744 18,110 409 144 3,372 2,311 — 109,241 Special Mention — — — — — 101 — — 101 Substandard 38 — — 19 — — — — 57 Real Estate - Commercial Mortgage $ 716,844 $ 1,572,099 $ 1,111,564 $ 717,571 $ 429,783 $ 723,344 $ 176,617 $ 26,252 $ 5,474,074 Owner-Occupied 264,589 336,491 321,491 214,365 164,931 283,517 60,200 3,247 1,648,831 Pass 260,831 325,575 318,391 212,368 159,552 275,088 56,453 2,977 1,611,235 Special Mention 562 1,147 890 107 3,385 2,953 25 — 9,069 Substandard 3,196 9,769 2,210 1,890 1,994 5,476 3,722 270 28,527 Non-Owner Occupied 432,769 1,195,500 776,264 499,290 260,355 434,541 111,609 22,821 3,733,149 Pass 428,740 1,194,864 761,476 494,971 223,264 398,188 111,609 13,774 3,626,886 Special Mention 1,339 454 14,422 4,111 14,001 12,677 — — 47,004 Substandard 2,690 182 366 208 23,090 23,676 — 9,047 59,259 Land Development 19,486 40,108 13,809 3,916 4,497 5,286 4,808 184 92,094 Pass 18,996 36,479 13,567 3,775 4,479 5,046 4,776 184 87,302 Special Mention 432 3,334 36 — — — — — 3,802 Substandard 58 295 206 141 18 240 32 — 990 Installment loans to individuals $ — $ — $ — $ — $ 3 $ — $ — $ — $ 3 Pass — — — — 3 — — — 3 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total loans subject to risk rating $ 1,529,045 $ 2,668,916 $ 1,695,615 $ 887,626 $ 506,670 $ 796,168 $ 1,092,033 $ 47,526 $ 9,223,599 Pass 1,486,700 2,646,886 1,675,390 876,426 462,272 743,331 1,075,744 37,771 9,004,520 Special Mention 34,460 7,924 15,614 6,334 17,962 16,403 939 63 99,699 Substandard 7,885 14,106 4,611 4,866 26,436 36,434 15,350 9,692 119,380 The following tables present the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented: 20 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Term Loans Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Total Loans March 31, 2024 Commercial, Financial, Agricultural $ — $ — $ — $ — $ — $ 20,350 $ — $ — $ 20,350 Performing Loans — — — — — 20,350 — — 20,350 Non-Performing Loans — — — — — — — — — Lease Financing Receivables $ — $ — $ — $ — $ — $ 710 $ — $ — $ 710 Performing Loans — — — — — 710 — — 710 Non-Performing Loans — — — — — — — — — Real Estate - Construction $ 2,232 $ 51,330 $ 29,288 $ 9,902 $ — $ — $ 865 $ 6 $ 93,623 Residential 2,232 51,330 29,288 9,902 — — 865 6 93,623 Performing Loans 2,232 51,330 29,288 9,902 — — 865 6 93,623 Non-Performing Loans — — — — — — — — — Commercial — — — — — — — — — Performing Loans — — — — — — — — — Non-Performing Loans — — — — — — — — — Real Estate - 1-4 Family Mortgage $ 12,152 $ 342,732 $ 733,486 $ 527,566 $ 305,436 $ 456,357 $ 490,616 $ 9,744 $ 2,878,089 Primary 11,116 338,124 730,573 525,749 304,650 455,349 — 41 2,365,602 Performing Loans 11,116 336,745 721,389 518,782 294,198 433,351 — 41 2,315,622 Non-Performing Loans — 1,379 9,184 6,967 10,452 21,998 — — 49,980 Home Equity — — — 111 — 452 490,616 9,703 500,882 Performing Loans — — — 111 — 446 490,306 7,111 497,974 Non-Performing Loans — — — — — 6 310 2,592 2,908 Rental/Investment — — — — — 62 — — 62 Performing Loans — — — — — 62 — — 62 Non-Performing Loans — — — — — — — — — Land Development 1,036 4,608 2,913 1,706 786 494 — — 11,543 Performing Loans 1,036 4,608 2,736 1,706 786 494 — — 11,366 Non-Performing Loans — — 177 — — — — — 177 Real Estate - Commercial Mortgage $ 557 $ 3,562 $ 2,393 $ 2,882 $ 1,782 $ 986 $ — $ — $ 12,162 Owner-Occupied — — — — 125 4 — — 129 Performing Loans — — — — 125 4 — — 129 Non-Performing Loans — — — — — — — — — Non-Owner Occupied — — — — 24 — — — 24 Performing Loans — — — — 24 — — — 24 Non-Performing Loans — — — — — — — — — Land Development 557 3,562 2,393 2,882 1,633 982 — — 12,009 Performing Loans 557 3,562 2,200 2,882 1,631 982 — — 11,814 Non-Performing Loans — — 193 — 2 — — — 195 Installment loans to individuals $ 10,221 $ 27,172 $ 14,231 $ 6,224 $ 2,338 $ 23,676 $ 13,554 $ 127 $ 97,543 Performing Loans 10,221 26,987 14,160 6,210 2,338 23,554 13,553 116 97,139 Non-Performing Loans — 185 71 14 — 122 1 11 404 Total loans not subject to risk rating $ 25,162 $ 424,796 $ 779,398 $ 546,574 $ 309,556 $ 502,079 $ 505,035 $ 9,877 $ 3,102,477 Performing Loans 25,162 423,232 769,773 539,593 299,102 479,953 504,724 7,274 3,048,813 Non-Performing Loans — 1,564 9,625 6,981 10,454 22,126 311 2,603 53,664 21 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Loans December 31, 2023 Commercial, Financial, Agricultural $ — $ — $ — $ — $ — $ 15,804 $ — $ — $ 15,804 Performing Loans — — — — — 15,804 — — 15,804 Non-Performing Loans — — — — — — — — — Lease Financing Receivables $ — $ — $ — $ — $ — $ 11 $ — $ — $ 11 Performing Loans — — — — — 11 — — 11 Non-Performing Loans — — — — — — — — — Real Estate - Construction $ 48,003 $ 41,070 $ 14,158 $ — $ — $ — $ 490 $ 30 $ 103,751 Residential 48,003 41,070 14,158 — — — 490 30 103,751 Performing Loans 48,003 41,070 14,158 — — — 490 30 103,751 Non-Performing Loans — — — — — — — — — Commercial — — — — — — — — — Performing Loans — — — — — — — — — Non-Performing Loans — — — — — — — — — Real Estate - 1-4 Family Mortgage $ 339,406 $ 731,088 $ 536,544 $ 312,015 $ 133,852 $ 339,842 $ 493,515 $ 5,807 $ 2,892,069 Primary 334,103 727,993 534,667 311,199 133,433 339,111 — 46 2,380,552 Performing Loans 333,751 720,759 528,383 302,065 128,859 322,677 — 46 2,336,540 Non-Performing Loans 352 7,234 6,284 9,134 4,574 16,434 — — 44,012 Home Equity — — 111 — — 470 493,515 5,761 499,857 Performing Loans — — 111 — — 466 491,849 4,584 497,010 Non-Performing Loans — — — — — 4 1,666 1,177 2,847 Rental/Investment — — — — — 65 — — 65 Performing Loans — — — — — 65 — — 65 Non-Performing Loans — — — — — — — — — Land Development 5,303 3,095 1,766 816 419 196 — — 11,595 Performing Loans 5,303 3,095 1,766 816 419 196 — — 11,595 Non-Performing Loans — — — — — — — — — Real Estate - Commercial Mortgage $ 3,640 $ 2,674 $ 3,054 $ 1,890 $ 902 $ 316 $ — $ — $ 12,476 Owner-Occupied — — — 126 — 4 — — 130 Performing Loans — — — 126 — 4 — — 130 Non-Performing Loans — — — — — — — — — Non-Owner Occupied — — — 25 — — — — 25 Performing Loans — — — 25 — — — — 25 Non-Performing Loans — — — — — — — — — Land Development 3,640 2,674 3,054 1,739 902 312 — — 12,321 Performing Loans 3,640 2,383 3,054 1,736 902 312 — — 12,027 Non-Performing Loans — 291 — 3 — — — — 294 Installment loans to individuals $ 35,274 $ 17,322 $ 7,121 $ 2,827 $ 9,786 $ 17,276 $ 13,769 $ 145 $ 103,520 Performing Loans 35,112 17,229 7,121 2,824 9,754 17,206 13,769 145 103,160 Non-Performing Loans 162 93 — 3 32 70 — — 360 Total loans not subject to risk rating $ 426,323 $ 792,154 $ 560,877 $ 316,732 $ 144,540 $ 373,249 $ 507,774 $ 5,982 $ 3,127,631 Performing Loans 425,809 784,536 554,593 307,592 139,934 356,741 506,108 4,805 3,080,118 Non-Performing Loans 514 7,618 6,284 9,140 4,606 16,508 1,666 1,177 47,513 22 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) The following tables disclose gross charge-offs by year of origination as of the dates presented: March 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Total Charge-offs Commercial, financial, agricultural $ — $ — $ 9 $ — $ — $ 129 $ 211 $ 349 Real estate – 1-4 family mortgage: Primary — — — 13 — — — 13 Home equity — — — — — 24 — 24 Rental/investment — — — — — 45 — 45 Total real estate – 1-4 family mortgage — — — 13 — 69 — 82 Installment loans to individuals — 27 16 — — 436 — 479 Loans, net of unearned income $ — $ 27 $ 25 $ 13 $ — $ 634 $ 211 $ 910 December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Total Charge-offs Commercial, financial, agricultural $ 898 $ 1,909 $ 235 $ 131 $ 635 $ 4,165 $ 865 $ 8,838 Lease financing 883 273 248 72 48 — — 1,524 Real estate – construction: Residential — 57 — — — — — 57 Real estate – 1-4 family mortgage: Primary — 17 — — — 92 — 109 Home equity — — — — 25 90 — 115 Rental/investment — — 91 72 10 20 — 193 Total real estate – 1-4 family mortgage — 17 91 72 35 202 — 417 Real estate – commercial mortgage: Owner-occupied — — — — — 582 — 582 Non-owner occupied — — — — — 4,986 — 4,986 Total real estate – commercial mortgage — — — — — 5,568 — 5,568 Installment loans to individuals 29 45 43 35 7 2,477 — 2,636 Loans, net of unearned income $ 1,810 $ 2,301 $ 617 $ 310 $ 725 $ 12,412 $ 865 $ 19,040 23 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 4 – Allowance for Credit Losses (In Thousands) Allowance for Credit Losses on Loans The allowance for credit losses is an estimate of expected losses inherent within the Company’s loans held for investment portfolio and is maintained at a level believed adequate by management to absorb credit losses inherent in the entire loan portfolio. Management evaluates the adequacy of the allowance for credit losses on a quarterly basis. Expected credit loss inherent in non-cancellable off-balance-sheet credit exposures is accounted for as a separate liability in the Consolidated Balance Sheets. The allowance for credit losses on loans held for investment, as reported in the Company’s Consolidated Balance Sheets, is adjusted by a provision for credit losses, which is reported in earnings, and reduced by net charge-offs. Loan losses are charged against the allowance for credit losses when management believes the uncollectability of a loan balance is confirmed and such losses are reasonably quantified. Subsequent recoveries, if any, are credited to the allowance. For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses, please refer to the discussion in Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The Company has made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses in the Company’s loan portfolio. As of March 31, 2024 and December 31, 2023, the Company had accrued interest receivable for loans of $ 56,176 and $ 54,804 , respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets. Although the Company made the election to exclude accrued interest from the measurement of the allowance for credit losses, the Company did have an allowance for credit losses on interest deferred as part of the loan deferral program established in 2020 in response to the COVID-19 pandemic of $ 1,245 as of March 31, 2024 and December 31, 2023. 24 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) The following tables provide a roll-forward of the allowance for credit losses by loan category and a breakdown of the ending balance of the allowance based on the Company’s credit loss methodology for the periods presented: Commercial Real Estate - Construction Real Estate - 1-4 Family Mortgage Real Estate - Commercial Mortgage Lease Financing Installment Loans to Individuals Total Three Months Ended March 31, 2024 Allowance for credit losses: Beginning balance $ 43,980 $ 18,612 $ 47,283 $ 77,020 $ 2,515 $ 9,168 $ 198,578 Charge-offs ( 349 ) — ( 82 ) — — ( 479 ) ( 910 ) Recoveries 346 — 48 6 8 338 746 Net (charge-offs) recoveries ( 3 ) — ( 34 ) 6 8 ( 141 ) ( 164 ) Provision for (recovery of) credit losses on loans 1,944 ( 1,295 ) 317 1,699 31 ( 58 ) 2,638 Ending balance $ 45,921 $ 17,317 $ 47,566 $ 78,725 $ 2,554 $ 8,969 $ 201,052 Period-End Amount Allocated to: Individually evaluated $ 9,104 $ — $ — $ 573 $ — $ 270 $ 9,947 Collectively evaluated 36,817 17,317 47,566 78,152 2,554 8,699 191,105 Ending balance $ 45,921 $ 17,317 $ 47,566 $ 78,725 $ 2,554 $ 8,969 $ 201,052 Loans: Individually evaluated $ 15,861 $ — $ 7,327 $ 13,033 $ — $ 270 $ 36,491 Collectively evaluated 1,853,547 1,243,535 3,421,959 5,740,197 107,474 97,322 12,464,034 Ending balance $ 1,869,408 $ 1,243,535 $ 3,429,286 $ 5,753,230 $ 107,474 $ 97,592 $ 12,500,525 Nonaccruing loans with no allowance for credit losses $ 157 $ — $ 7,328 $ 10,130 $ — $ — $ 17,615 25 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Commercial Real Estate - Construction Real Estate - 1-4 Family Mortgage Real Estate - Commercial Mortgage Lease Financing Installment Loans to Individuals Total Three Months Ended March 31, 2023 Allowance for credit losses: Beginning balance $ 44,255 $ 19,114 $ 44,727 $ 71,798 $ 2,463 $ 9,733 $ 192,090 Initial impact of PCD loans acquired ( 26 ) — — — — — ( 26 ) Charge-offs ( 529 ) — ( 3 ) ( 5,115 ) — ( 810 ) ( 6,457 ) Recoveries 725 — 24 211 5 760 1,725 Net (charge-offs) recoveries 196 — 21 ( 4,904 ) 5 ( 50 ) ( 4,732 ) Provision for (recovery of) credit losses on loans 253 845 1,233 5,876 ( 31 ) ( 216 ) 7,960 Ending balance $ 44,678 $ 19,959 $ 45,981 $ 72,770 $ 2,437 $ 9,467 $ 195,292 Period-End Amount Allocated to: Individually evaluated $ 14,162 $ 35 $ 608 $ 1,734 $ — $ 270 $ 16,809 Collectively evaluated 30,516 19,924 45,373 71,036 2,437 9,197 178,483 Ending balance $ 44,678 $ 19,959 $ 45,981 $ 72,770 $ 2,437 $ 9,467 $ 195,292 Loans: Individually evaluated $ 24,985 $ 652 $ 12,637 $ 10,375 $ — $ 274 $ 48,923 Collectively evaluated 1,715,793 1,423,700 3,266,343 5,075,438 121,146 115,082 11,717,502 Ending balance $ 1,740,778 $ 1,424,352 $ 3,278,980 $ 5,085,813 $ 121,146 $ 115,356 $ 11,766,425 Nonaccruing loans with no allowance for credit losses $ 768 $ — $ 9,710 $ 5,511 $ — $ 5 $ 15,994 The Company recorded a provision for credit losses on loans of $ 2,638 during the first quarter of 2024, as compared to a provision for credit losses on loans of $ 7,960 recorded in the first quarter of 2023. The Company’s allowance for credit losses model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years . The provision for credit losses on loans of $ 2,638 in the first quarter of 2024 was primarily driven by loan growth. Allowance for Credit Losses on Unfunded Loan Commitments The Company maintains a separate allowance for credit losses on unfunded loan commitments, which is included in the “Other liabilities” line item on the Consolidated Balance Sheets. For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses on unfunded loan commitments, please refer to the discussion in Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The following tables provide a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented. Three Months Ended March 31, 2024 2023 Allowance for credit losses on unfunded loan commitments: Beginning balance $ 16,918 $ 20,118 Recovery of credit losses on unfunded loan commitments ( 200 ) ( 1,500 ) Ending balance $ 16,718 $ 18,618 Note 5 – Other Real Estate Owned 26 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) (In Thousands) The following table provides details of the Company’s other real estate owned (“OREO”), net of valuation allowances and direct write-downs, as of the dates presented: March 31, 2024 December 31, 2023 Residential real estate $ 1,244 $ 1,211 Commercial real estate 7,872 8,407 Residential land development 19 4 Commercial land development 7 — Total $ 9,142 $ 9,622 Changes in the Company’s OREO were as follows: Total OREO Balance at January 1, 2024 $ 9,622 Transfers of loans 195 Impairments ( 28 ) Dispositions ( 119 ) Other ( 528 ) Balance at March 31, 2024 $ 9,142 At March 31, 2024 and December 31, 2023, the amortized cost of loans secured by Real Estate - 1-4 Family Mortgage in the process of foreclosure was $ 2,555 and $ 395 , respectively. Components of the line item “Other real estate owned” in the Consolidated Statements of Income were as follows for the periods presented: Three Months Ended March 31, 2024 2023 Repairs and maintenance $ 64 $ 16 Property taxes and insurance 29 111 Impairments 28 — Net gains on OREO sales ( 13 ) ( 95 ) Rental income ( 1 ) ( 2 ) Total $ 107 $ 30 Note 6 – Goodwill and Other Intangible Assets (In Thousands) The carrying amounts of goodwill by operating segments for the three months ended March 31, 2024 are set forth in the table below. Community Banks Insurance Total Balance at January 1, 2024 $ 988,898 $ 2,767 $ 991,665 Additions to goodwill and other adjustments — — — Balance at March 31, 2024 $ 988,898 $ 2,767 $ 991,665 27 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) The following table provides a summary of finite-lived intangible assets as of the dates presented: Gross Carrying Amount Accumulated Amortization Net Carrying Amount March 31, 2024 Core deposit intangibles $ 82,492 $ ( 69,297 ) $ 13,195 Customer relationship intangible 7,670 ( 3,282 ) 4,388 Total finite-lived intangible assets $ 90,162 $ ( 72,579 ) $ 17,583 December 31, 2023 Core deposit intangibles $ 82,492 $ ( 68,383 ) $ 14,109 Customer relationship intangible 7,670 ( 2,984 ) 4,686 Total finite-lived intangible assets $ 90,162 $ ( 71,367 ) $ 18,795 Current year amortization expense for finite-lived intangible assets is presented in the table below. Three Months Ended March 31, 2024 2023 Amortization expense for: Core deposit intangibles $ 914 $ 1,092 Customer relationship intangible 298 334 Total intangible amortization $ 1,212 $ 1,426 The estimated amortization expense of finite-lived intangible assets for the year ending December 31, 2024 and the succeeding four years is summarized as follows: Core Deposit Intangibles Customer Relationship Intangible Total 2024 $ 3,498 $ 1,192 $ 4,690 2025 3,102 1,048 4,150 2026 2,899 860 3,759 2027 2,774 628 3,402 2028 1,836 483 2,319 Note 7 – Mortgage Servicing Rights (In Thousands) The Company retains the right to service certain mortgage loans that it sells to secondary market investors. These mortgage servicing rights (“MSRs”) are recognized as a separate asset on the date the corresponding mortgage loan is sold. MSRs are amortized in proportion to and over the period of estimated net servicing income. These servicing rights are carried at the lower of amortized cost or fair value. Fair value is determined using an income approach with various assumptions, including expected cash flows, prepayment speeds, market discount rates, servicing costs, and other factors, and is subject to significant fluctuation as a result of actual prepayment speeds, default rates and losses differing from estimates thereof. For example, an increase in mortgage interest rates or a decrease in actual prepayment speeds may cause positive adjustments to the valuation of the Company’s MSRs. MSRs are evaluated for impairment (or reversals of prior impairments) quarterly based upon the fair value of the rights as compared to the carrying amount. Impairment is recognized through a valuation allowance in the amount that unamortized cost exceeds fair value. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the valuation allowance may be recorded as an increase to income. Changes in valuation allowances related to servicing rights are reported in “Mortgage banking income” on the Consolidated Statements of Income. 28 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) There was no valuation adjustment on MSRs during the three months ended March 31, 2024 or 2023. During the first quarter of 2024, the Company sold MSRs relating to mortgage loans having an aggregate unpaid principal balance of $ 2,013,235 to a third party for net proceeds of $ 23,011 , resulting in a gain of $ 3,472 . Changes in the Company’s MSRs were as follows: Balance at January 1, 2024 $ 91,688 Sale of MSRs ( 19,539 ) Capitalization 2,026 Amortization ( 2,579 ) Balance at March 31, 2024 $ 71,596 Data and key economic assumptions related to the Company’s MSRs are as follows as of the dates presented: March 31, 2024 December 31, 2023 Unpaid principal balance $ 5,860,523 $ 7,826,182 Weighted-average prepayment speed (CPR) 8.96 % 8.77 % Estimated impact of a 10% increase $ ( 2,046 ) $ ( 2,653 ) Estimated impact of a 20% increase ( 4,230 ) ( 5,457 ) Discount rate 11.10 % 10.85 % Estimated impact of a 10% increase $ ( 3,875 ) $ ( 4,753 ) Estimated impact of a 20% increase ( 7,461 ) ( 9,149 ) Weighted-average coupon interest rate 4.05 % 3.88 % Weighted-average servicing fee (basis points) 36.15 33.24 Weighted-average remaining maturity (in years) 7.50 7.50 The Company recorded servicing fees of $ 4,088 and $ 4,265 for the three months ended March 31, 2024 and 2023, respectively, all of which are included in “Mortgage banking income” in the Consolidated Statements of Income. Note 8 - Employee Benefit and Deferred Compensation Plans (In Thousands, Except Share Data) Pension and Post-retirement Medical Plans The Company sponsors a noncontributory defined benefit pension plan, under which participation and benefit accruals ceased as of December 31, 1996, and it provides retiree medical benefits, consisting of the opportunity to purchase coverage at subsidized rates under the Company’s group medical plan. Information related to the defined benefit pension plan maintained by Renasant Bank (“Pension Benefits”) and to the post-retirement health and life plan (“Other Benefits”) as of the dates presented is as follows: 29 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Pension Benefits Other Benefits Three Months Ended Three Months Ended March 31, March 31, 2024 2023 2024 2023 Interest cost $ 227 $ 249 $ 5 $ 6 Expected return on plan assets ( 248 ) ( 309 ) — — Recognized actuarial loss (gain) 129 131 ( 23 ) ( 15 ) Net periodic benefit cost (return) $ 108 $ 71 $ ( 18 ) $ ( 9 ) Incentive Compensation Plans The Company maintains a long-term equity compensation plan that provides for the grant of stock options and the award of restricted stock. There were no stock options granted or outstanding, nor compensation expense associated with options recorded, during the three months ended March 31, 2024 or 2023. The Company also awards performance-based restricted stock to executives and other officers and employees and time-based restricted stock to non-employee directors, executives, and other officers and employees. The following table summarizes the changes in restricted stock as of and for the three months ended March 31, 2024: Performance-Based Restricted Stock Weighted Average Grant-Date Fair Value Time-Based Restricted Stock Weighted Average Grant-Date Fair Value Nonvested at beginning of period 169,575 $ 36.38 779,564 $ 36.20 Awarded 95,048 33.44 312,940 33.19 Vested — — ( 219,951 ) 36.33 Cancelled — — ( 3,599 ) 34.04 Nonvested at end of period 264,623 $ 35.32 868,954 $ 35.10 During the three months ended March 31, 2024, the Company reissued 162,653 shares from treasury in connection with awards of restricted stock. The Company recorded total stock-based compensation expense of $ 3,992 and $ 3,445 for the three months ended March 31, 2024 and 2023, respectively. Note 9 – Derivative Instruments (In Thousands) The Company uses certain derivative instruments to meet the needs of customers as well as to manage the interest rate risk associated with certain transactions. Non-hedge derivatives The Company enters into derivative instruments that are not designated as hedging instruments to help its commercial customers manage their exposure to interest rate fluctuations. To mitigate the interest rate risk associated with these customer contracts, the Company enters into an offsetting derivative contract position. The Company manages its credit risk, or potential risk of default by its commercial customers, through credit limit approval and monitoring procedures. 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. The Company also enters into forward commitments to sell residential mortgage loans to secondary market investors. The following table provides a summary of the Company’s derivatives not designated as hedging instruments as of the dates presented: 30 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Balance Sheet March 31, 2024 December 31, 2023 Location Notional Amount Fair Value Notional Amount Fair Value Derivative assets: Interest rate contracts Other Assets $ 631,264 $ 13,758 $ 532,279 $ 13,567 Interest rate lock commitments Other Assets 111,462 2,279 61,957 1,483 Forward commitments Other Assets 74,000 179 20,000 43 Totals $ 816,726 $ 16,216 $ 614,236 $ 15,093 Derivative liabilities: Interest rate contracts Other Liabilities $ 631,264 $ 13,758 $ 535,725 $ 13,567 Interest rate lock commitments Other Liabilities 6,220 18 2,292 — Forward commitments Other Liabilities 155,000 674 165,000 2,605 Totals $ 792,484 $ 14,450 $ 703,017 $ 16,172 Gains and losses included in the Consolidated Statements of Income related to the Company’s derivative financial instruments were as follows as of the dates presented: Three Months Ended March 31, 2024 2023 Interest rate contracts: Included in interest income on loans $ 3,191 $ 1,742 Interest rate lock commitments: Included in mortgage banking income 808 2,237 Forward commitments Included in mortgage banking income 2,067 ( 490 ) Total $ 6,066 $ 3,489 Derivatives designated as cash flow hedges Cash flow hedge relationships mitigate exposure to the variability of future cash flow or other forecasted transactions. The Company uses both interest rate swap contracts and interest rate collars in an effort to manage future interest rate exposure on borrowings. The swap hedging strategy converts the variable interest rate on the forecasted borrowings to a fixed interest rate. The collar hedging strategy stabilizes interest rate fluctuation by setting both a floor and a cap. The following table provides a summary of the Company’s derivatives designated as cash flow hedges as of the dates presented: Balance Sheet March 31, 2024 December 31, 2023 Location Notional Amount Fair Value Notional Amount Fair Value Derivative assets: Interest rate swaps Other Assets $ 130,000 $ 23,655 $ 130,000 $ 21,486 Interest rate collars Other Assets — — 200,000 572 Total $ 130,000 $ 23,655 $ 330,000 $ 22,058 Derivative liabilities: Interest rate collars Other Liabilities 450,000 2,746 250,000 384 Totals $ 450,000 $ 2,746 $ 250,000 $ 384 Changes in fair value of the cash flow hedges are, to the extent that the hedging relationship is effective, recorded as other comprehensive income and are subsequently recognized in earnings at the same time that the hedged item is recognized in earnings. The ineffective portions of the changes in fair value of the hedging instruments are immediately recognized in earnings. The assessment of the effectiveness of the hedging relationship is evaluated under the hypothetical derivative method. There were no ineffective portions for the three months ended March 31, 2024 or 2023. The impact on other comprehensive income for the three months ended March 31, 2024 and 2023 is discussed in Note 12, “Other Comprehensive Income (Loss).” 31 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Derivatives designated as fair value hedges Fair value hedges protect against changes in the fair value of an asset, liability, or firm commitment. The Company enters into interest rate swap agreements to manage interest rate exposure on certain of the Company’s fixed-rate subordinated notes. The agreements convert the fixed interest rates to variable interest rates. The following table provides a summary of the Company's derivatives designated as fair value hedges as of the dates presented: Balance Sheet March 31, 2024 December 31, 2023 Location Notional Amount Fair Value Notional Amount Fair Value Derivative liabilities: Interest rate swaps Other Liabilities $ 100,000 $ 18,563 $ 100,000 $ 17,052 The following table presents the effects of the Company’s fair value hedge relationships on the Consolidated Statements of Income for the periods presented: Amount of Gain (Loss) Recognized in Income Income Statement Three Months Ended March 31, Location 2024 2023 Derivative liabilities: Interest rate swaps - subordinated notes Interest Expense $ ( 1,511 ) $ 2,521 Derivative liabilities - hedged items: Interest rate swaps - subordinated notes Interest Expense $ 1,511 $ ( 2,521 ) The following table presents the amounts that were recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of the dates presented: Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Liability Balance Sheet Location March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Long-term debt $ 80,324 $ 81,791 $ 18,563 $ 17,052 Offsetting Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheet when the “right of offset” exists or when the instruments are subject to an enforceable master netting agreement, which includes the right of the non-defaulting party or non-affected party to offset recognized amounts, including collateral posted with the counterparty, to determine a net receivable or net payable upon early termination of the agreement. Certain of the Company’s derivative instruments are subject to master netting agreements; however, the Company has not elected to offset such financial instruments in the Consolidated Balance Sheets. The following table presents the Company’s gross derivative positions as recognized in the Consolidated Balance Sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement: 32 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Offsetting Derivative Assets Offsetting Derivative Liabilities March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Gross amounts recognized $ 34,905 $ 29,284 $ 33,054 $ 26,425 Gross amounts offset in the Consolidated Balance Sheets — — — — Net amounts presented in the Consolidated Balance Sheets 34,905 29,284 33,054 26,425 Gross amounts not offset in the Consolidated Balance Sheets Financial instruments 29,798 23,863 29,798 23,863 Financial collateral pledged — — 318 1,074 Net amounts $ 5,107 $ 5,421 $ 2,938 $ 1,488 Note 10 – Income Taxes (In Thousands) The following table is a summary of the Company’s temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities and their approximate tax effects as of the dates presented. March 31, December 31, 2024 2023 Deferred tax assets Allowance for credit losses $ 53,963 $ 53,432 Loans 1,437 1,631 Deferred compensation 12,192 15,310 Net unrealized losses on securities 52,103 51,211 Impairment of assets 284 138 Tax credits 4,711 4,035 Net operating loss carryforwards 4 33 Investment in partnerships 1,637 1,491 Lease liabilities under operating leases 12,974 13,066 Realized losses on securities 48 4,892 Other 2,748 2,660 Total deferred tax assets 142,101 147,899 Deferred tax liabilities Fixed assets 11,022 11,023 Mortgage servicing rights 16,367 21,282 Junior subordinated debt 1,647 1,708 Intangibles 2,371 2,447 Lease right-of-use asset 12,322 12,399 Other 3,490 3,344 Total deferred tax liabilities 47,219 52,203 Net deferred tax assets $ 94,882 $ 95,696 For the three months ended March 31, 2024 and 2023, the Company recorded a provision for income taxes totaling $ 9,912 and $ 11,322 , respectively. The provision for income taxes includes both federal and state income taxes and differs from the statutory rate due to favorable permanent differences. 33 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) The Company and its subsidiaries file a consolidated U.S. federal income tax return. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state departments of revenue for the years ending December 31, 2021 through December 31, 2023. Note 11 – Fair Value Measurements (In Thousands) Fair Value Measurements and the Fair Level Hierarchy Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” provides guidance for using fair value to measure assets and liabilities and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to a valuation based on quoted prices in active markets for identical assets and liabilities (Level 1), moderate priority to a valuation based on quoted prices in active markets for similar assets and liabilities and/or based on assumptions that are observable in the market (Level 2), and the lowest priority to a valuation based on assumptions that are not observable in the market (Level 3). Recurring Fair Value Measurements The Company carries certain assets and liabilities at fair value on a recurring basis in accordance with applicable standards. The Company’s recurring fair value measurements are based on the requirement to carry such assets and liabilities at fair value or the Company’s election to carry certain eligible assets and liabilities at fair value. Assets and liabilities that are required to be carried at fair value on a recurring basis include securities available for sale and derivative instruments. The Company has elected to carry mortgage loans held for sale at fair value on a recurring basis as permitted under the guidance in ASC 825, “Financial Instruments” (“ASC 825”). The following methods and assumptions are used by the Company to estimate the fair values of the Company’s financial assets and liabilities that are measured on a recurring basis: Securities available for sale : Securities available for sale consist primarily of debt securities, such as obligations of U.S. Government agencies and corporations, obligations of states and political subdivisions and mortgage-backed securities. Where quoted market prices in active markets are available, securities are classified within Level 1 of the fair value hierarchy. If quoted prices from active markets are not available, fair values are based on quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active, or model-based valuation techniques where all significant assumptions are observable in the market. Such instruments are classified within Level 2 of the fair value hierarchy. When assumptions used in model-based valuation techniques are not observable in the market, the assumptions used by management reflect estimates of assumptions used by other market participants in determining fair value. When there is limited transparency around the inputs to the valuation, the instruments are classified within Level 3 of the fair value hierarchy. Derivative instruments : Most of the Company’s derivative contracts are extensively traded in over-the-counter markets and are valued using discounted cash flow models which incorporate observable market based inputs including current market interest rates, credit spreads, and other factors. Such instruments are categorized within Level 2 of the fair value hierarchy and include interest rate swaps, interest rate collars and other interest rate contracts such as interest rate caps and/or floors. The Company’s interest rate lock commitments are valued using current market prices for mortgage-backed securities with similar characteristics, adjusted for certain factors including servicing and risk. The value of the Company’s forward commitments is based on current prices for securities backed by similar types of loans. Because these assumptions are observable in active markets, the Company’s interest rate lock commitments and forward commitments are categorized within Level 2 of the fair value hierarchy. Mortgage loans held for sale in loans held for sale : Mortgage loans held for sale are primarily agency loans which trade in active secondary markets. The fair value of these instruments is derived from current market pricing for similar loans, adjusted for differences in loan characteristics, including servicing and risk. Because the valuation is based on external pricing of similar instruments, mortgage loans held for sale are classified within Level 2 of the fair value hierarchy. The following tables present assets and liabilities that are measured at fair value on a recurring basis as of the dates presented: 34 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Level 1 Level 2 Level 3 Totals March 31, 2024 Financial assets: Securities available for sale $ — $ 764,486 $ — $ 764,486 Derivative instruments — 39,871 — 39,871 Mortgage loans held for sale in loans held for sale — 191,440 — 191,440 Total financial assets $ — $ 995,797 $ — $ 995,797 Financial liabilities: Derivative instruments: $ — $ 35,759 $ — $ 35,759 Level 1 Level 2 Level 3 Totals December 31, 2023 Financial assets: Securities available for sale $ — $ 923,279 $ — $ 923,279 Derivative instruments — 37,151 — 37,151 Mortgage loans held for sale in loans held for sale — 179,756 — 179,756 Total financial assets $ — $ 1,140,186 $ — $ 1,140,186 Financial liabilities: Derivative instruments $ — $ 33,608 $ — $ 33,608 The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the Company’s ability to observe inputs to the valuation may cause reclassification of certain assets or liabilities within the fair value hierarchy. Transfers between levels of the hierarchy are deemed to have occurred at the end of period. There were no such transfers between levels of the fair value hierarchy during the three months ended March 31, 2024. For the three months ended March 31, 2024 and 2023, respectively, there were no gains or losses included in earnings that were attributable to the change in unrealized gains or losses related to assets or liabilities held at the end of each respective period that were measured on a recurring basis using significant unobservable inputs. Nonrecurring Fair Value Measurements Certain assets and liabilities may be recorded at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically are a result of the application of the lower of cost or market accounting or a write-down occurring during the period. The following tables provide the fair value measurement for assets measured at fair value on a nonrecurring basis that were still held on the Consolidated Balance Sheets as of the dates presented and the level within the fair value hierarchy each is classified: March 31, 2024 Level 1 Level 2 Level 3 Totals Individually evaluated loans, net of allowance for credit losses $ — $ — $ 6,690 $ 6,690 OREO — — 74 74 Total $ — $ — $ 6,764 $ 6,764 December 31, 2023 Level 1 Level 2 Level 3 Totals Individually evaluated loans, net of allowance for credit losses $ — $ — $ 27,762 $ 27,762 Total $ — $ — $ 27,762 $ 27,762 The following methods and assumptions are used by the Company to estimate the fair values of the Company’s financial assets measured on a nonrecurring basis: Individually evaluated loans: Individually evaluated loans are reviewed and evaluated for credit losses on at least a quarterly basis for additional impairment and adjusted accordingly, taking into account the fair value of the collateral less estimated 35 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) selling costs. Collateral may be real estate and/or business assets including but not limited to equipment, inventory and accounts receivable. The fair value of real estate is determined based on appraisals by qualified licensed appraisers. The fair value of the business assets is generally based on amounts reported on the business’s financial statements. Appraised and reported values may be adjusted based on changes in market conditions from the time of valuation and management’s knowledge of the client and the client’s business. Since not all valuation inputs are observable, these nonrecurring fair value determinations are classified as Level 3. Individually evaluated loans that were measured or re-measured at fair value had a carrying value of $ 11,348 and $ 37,515 at March 31, 2024 and December 31, 2023, respectively, and a specific reserve for these loans of $ 4,658 and $ 9,753 was included in the allowance for credit losses as of such dates. Other real estate owned : OREO is comprised of commercial and residential real estate obtained in partial or total satisfaction of loan obligations. OREO acquired in settlement of indebtedness is recorded at the fair value of the real estate less estimated costs to sell. Subsequently, it may be necessary to record nonrecurring fair value adjustments for declines in fair value. Fair value, when recorded, is determined based on appraisals by qualified licensed appraisers and adjusted for management’s estimates of costs to sell. Accordingly, values for OREO are classified as Level 3. The following table presents OREO measured at fair value on a nonrecurring basis that was still held on the Consolidated Balance Sheets as of March 31, 2024. There was no impairment recognized during 2023 of OREO assets still held in the Consolidated Balance Sheets as of December 31, 2023. March 31, 2024 Carrying amount prior to remeasurement $ 103 Impairment recognized in results of operations ( 29 ) Fair value $ 74 Mortgage servicing rights : Mortgage servicing rights are carried at the lower of amortized cost or fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, prepayment speeds, servicing costs, and other factors. Because these factors are not all observable and include management’s assumptions, mortgage servicing rights are classified within Level 3 of the fair value hierarchy. Mortgage servicing rights were carried at amortized cost at March 31, 2024 and December 31, 2023. There were no valuation adjustments on MSRs during the three months ended March 31, 2024 or 2023. The following table presents information as of March 31, 2024 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Value Valuation Technique Significant Unobservable Inputs Range of Inputs Individually evaluated loans, net of allowance for credit losses $ 6,690 Appraised value of collateral less estimated costs to sell Estimated costs to sell 4 - 10 % OREO $ 74 Appraised value of property less estimated costs to sell Estimated costs to sell 4 - 10 % Fair Value Option The Company has elected to measure all mortgage loans held for sale at fair value under the fair value option as permitted under ASC 825. Electing to measure these assets at fair value reduces certain timing differences and better matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them. A net loss of $ 1,703 and net gain of $ 1,780 resulting from fair value changes of these mortgage loans were recorded in income during the three months ended March 31, 2024 and 2023, respectively. The amount does not reflect changes in fair values of related derivative instruments used to hedge exposure to market-related risks associated with these mortgage loans. The change in fair value of both mortgage loans held for sale and the related derivative instruments are recorded in “Mortgage banking income” in the Consolidated Statements of Income. The Company’s valuation of mortgage loans held for sale incorporates an assumption for credit risk; however, given the short-term period that the Company holds these loans, valuation adjustments attributable to instrument-specific credit risk is nominal. 36 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Interest income on mortgage loans held for sale measured at fair value is accrued as it is earned based on contractual rates and is reflected in loan interest income on the Consolidated Statements of Income. The following table summarizes the differences between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of March 31, 2024 and December 31, 2023: Aggregate Fair Value Aggregate Unpaid Principal Balance Difference March 31, 2024 Mortgage loans held for sale measured at fair value $ 191,440 $ 187,881 $ 3,559 December 31, 2023 Mortgage loans held for sale measured at fair value $ 179,756 $ 174,471 $ 5,285 Fair Value of Financial Instruments The carrying amounts and estimated fair values of the Company’s financial instruments, including those assets and liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis, were as follows as of the dates presented: Fair Value As of March 31, 2024 Carrying Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 844,400 $ 844,400 $ — $ — $ 844,400 Securities held to maturity 1,199,111 — 1,085,085 — 1,085,085 Securities available for sale 764,486 — 764,486 — 764,486 Loans held for sale 191,440 — 191,440 — 191,440 Loans, net 12,299,473 — — 11,757,985 11,757,985 Mortgage servicing rights 71,596 — — 96,622 96,622 Derivative instruments 39,871 — 39,871 — 39,871 Financial liabilities Deposits $ 14,237,163 $ 11,501,780 $ 2,719,369 $ — $ 14,221,149 Short-term borrowings 108,121 108,121 — — 108,121 Junior subordinated debentures 113,213 — 97,071 — 97,071 Subordinated notes 314,834 — 263,983 — 263,983 Derivative instruments 35,759 — 35,759 — 35,759 37 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Fair Value As of December 31, 2023 Carrying Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 801,351 $ 801,351 $ — $ — $ 801,351 Securities held to maturity 1,221,464 — 1,121,830 — 1,121,830 Securities available for sale 923,279 — 923,279 — 923,279 Loans held for sale 179,756 — 179,756 — 179,756 Loans, net 12,152,652 — — 11,594,363 11,594,363 Mortgage servicing rights 91,688 — — 117,664 117,664 Derivative instruments 37,151 — 37,151 — 37,151 Financial liabilities Deposits $ 14,076,785 $ 11,381,556 $ 2,678,494 $ — $ 14,060,050 Short-term borrowings 307,577 307,577 — — 307,577 Junior subordinated debentures 112,978 — 96,435 — 96,435 Subordinated notes 316,422 — 255,192 — 255,192 Derivative instruments 33,608 — 33,608 — 33,608 38 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 12 – Other Comprehensive Income (Loss) (In Thousands) Changes in the components of other comprehensive income (loss), net of tax, were as follows for the periods presented: Pre-Tax Tax Expense (Benefit) Net of Tax Three months ended March 31, 2024 Securities available for sale: Unrealized holding losses on securities $ ( 6,192 ) $ ( 1,558 ) $ ( 4,634 ) Amortization of unrealized holding losses on securities transferred to the held to maturity category 3,275 837 2,438 Total securities available for sale ( 2,917 ) ( 721 ) ( 2,196 ) Derivative instruments: Unrealized holding losses on derivative instruments ( 765 ) ( 195 ) ( 570 ) Total derivative instruments ( 765 ) ( 195 ) ( 570 ) Defined benefit pension and post-retirement benefit plans: Amortization of net actuarial loss recognized in net periodic pension cost 106 27 79 Total defined benefit pension and post-retirement benefit plans 106 27 79 Total other comprehensive loss $ ( 3,576 ) $ ( 889 ) $ ( 2,687 ) Three months ended March 31, 2023 Securities available for sale: Unrealized holding gains on securities $ 20,714 $ 5,183 $ 15,531 Amortization of unrealized holding losses on securities transferred to the held to maturity category 3,128 800 2,328 Total securities available for sale 23,842 5,983 17,859 Derivative instruments: Unrealized holding losses on derivative instruments ( 1,656 ) ( 424 ) ( 1,232 ) Total derivative instruments ( 1,656 ) ( 424 ) ( 1,232 ) Defined benefit pension and post-retirement benefit plans: Amortization of net actuarial loss recognized in net periodic pension cost 116 30 86 Total defined benefit pension and post-retirement benefit plans 116 30 86 Total other comprehensive income $ 22,302 $ 5,589 $ 16,713 The accumulated balances for each component of other comprehensive loss, net of tax, were as follows as of the dates presented: March 31, 2024 December 31, 2023 Unrealized losses on securities $ ( 165,680 ) $ ( 163,484 ) Unrealized gains on derivative instruments 16,481 17,051 Unrecognized losses on defined benefit pension and post-retirement benefit plans obligations ( 7,744 ) ( 7,823 ) Total accumulated other comprehensive loss $ ( 156,943 ) $ ( 154,256 ) 39 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 13 – Net Income Per Common Share (In Thousands, Except Share Data) Basic net income per common share is calculated by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per common share reflects the pro forma dilution of shares outstanding, assuming outstanding service-based restricted stock awards fully vested, calculated in accordance with the treasury method. Basic and diluted net income per common share calculations are as follows for the periods presented: Three Months Ended March 31, 2024 2023 Basic Net income applicable to common stock $ 39,409 $ 46,078 Average common shares outstanding 56,208,348 56,008,741 Net income per common share - basic $ 0.70 $ 0.82 Diluted Net income applicable to common stock $ 39,409 $ 46,078 Average common shares outstanding 56,208,348 56,008,741 Effect of dilutive stock-based compensation 322,730 261,478 Average common shares outstanding - diluted 56,531,078 56,270,219 Net income per common share - diluted $ 0.70 $ 0.82 Stock-based compensation awards that could potentially dilute basic net income per common share in the future that were not included in the computation of diluted net income per common share due to their anti-dilutive effect were as follows for the periods presented: Three Months Ended March 31, 2024 2023 Number of shares 78,296 68,771 Note 14 – Regulatory Matters (In Thousands) The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Federal Reserve, the FDIC and the Office of the Comptroller of the Currency have issued guidelines governing the levels of capital that bank holding companies and banks must maintain. Those guidelines specify capital tiers, which include the following classifications: 40 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Capital Tiers Tier 1 Capital to Average Assets (Leverage) Common Equity Tier 1 to Risk - Weighted Assets Tier 1 Capital to Risk - Weighted Assets Total Capital to Risk - Weighted Assets Well capitalized 5 % or above 6.5 % or above 8 % or above 10 % or above Adequately capitalized 4 % or above 4.5 % or above 6 % or above 8 % or above Undercapitalized Less than 4 % Less than 4.5 % Less than 6 % Less than 8 % Significantly undercapitalized Less than 3 % Less than 3 % Less than 4 % Less than 6 % Critically undercapitalized Tangible Equity / Total Assets less than 2 % The following table provides the capital and risk-based capital and leverage ratios for the Company and for the Bank as of the dates presented: March 31, 2024 December 31, 2023 Amount Ratio Amount Ratio Renasant Corporation Tier 1 Capital to Average Assets (Leverage) $ 1,594,020 9.75 % $ 1,578,918 9.62 % Common Equity Tier 1 Capital to Risk-Weighted Assets 1,484,398 10.59 % 1,469,531 10.52 % Tier 1 Capital to Risk-Weighted Assets 1,594,020 11.37 % 1,578,918 11.30 % Total Capital to Risk-Weighted Assets 2,102,933 15.00 % 2,085,531 14.93 % Renasant Bank Tier 1 Capital to Average Assets (Leverage) $ 1,728,934 10.57 % $ 1,714,965 10.45 % Common Equity Tier 1 Capital to Risk-Weighted Assets 1,728,934 12.31 % 1,714,965 12.25 % Tier 1 Capital to Risk-Weighted Assets 1,728,934 12.31 % 1,714,965 12.25 % Total Capital to Risk-Weighted Assets 1,904,816 13.56 % 1,888,104 13.49 % The Company elected to take advantage of transitional relief offered by the Federal Reserve and the FDIC to delay for two years the estimated impact of ASC Topic 326, “Financial Instruments - Credit Losses” (“ASC 326”), often referred to as CECL, on regulatory capital, followed by a three-year transitional period to phase out the capital benefit provided by the two-year delay. The three-year transitional period began on January 1, 2022 . Note 15 – Segment Reporting (In Thousands) The operations of the Company’s reportable segments are described as follows: • The Community Banks segment delivers a complete range of banking and financial services to individuals and small to medium-sized businesses including checking and savings accounts, business and personal loans, asset-based lending, factoring, equipment leasing and treasury management services, as well as safe deposit and night depository facilities. • The Insurance segment includes a full service insurance agency offering all major lines of commercial and personal insurance through major carriers. • The Wealth Management segment, through the Trust division, offers a broad range of fiduciary services including the administration (as trustee or in other fiduciary or representative capacities) of benefit plans, management of trust accounts, inclusive of personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts. In addition, the Wealth Management segment, through the Financial Services division, provides specialized products and services to customers, which include fixed and variable annuities, mutual funds and other investment services through a third party broker-dealer. To give the Company’s divisional management a more precise indication of the income and expenses they can control, the results of operations for the Community Banks, the Insurance and the Wealth Management segments reflect the direct revenues and expenses of each respective segment. Indirect revenues and expenses, including but not limited to income from the Company’s investment portfolio as well as certain costs associated with data processing and back office functions, primarily support the operations of the community banks and, therefore, are included in the results of the Community Banks segment. 41 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Included in “Other” are the operations of the holding company and other eliminations which are necessary for purposes of reconciling to the consolidated amounts. The following tables provide financial information for the Company’s operating segments as of and for the periods presented: Community Banks Insurance Wealth Management Other Consolidated Three months ended March 31, 2024 Net interest income (loss) $ 129,691 $ 481 $ 11 $ ( 6,893 ) $ 123,290 Provision for credit losses 2,438 — — — 2,438 Noninterest income (loss) 31,491 3,596 6,633 ( 339 ) 41,381 Noninterest expense 105,167 2,147 5,185 413 112,912 Income (loss) before income taxes 53,577 1,930 1,459 ( 7,645 ) 49,321 Income tax expense (benefit) 11,364 501 20 ( 1,973 ) 9,912 Net income (loss) $ 42,213 $ 1,429 $ 1,439 $ ( 5,672 ) $ 39,409 Total assets $ 17,303,709 $ 41,905 $ 5,409 $ ( 5,282 ) $ 17,345,741 Goodwill $ 988,898 $ 2,767 — — $ 991,665 Three months ended March 31, 2023 Net interest income (loss) $ 141,796 $ 286 $ 11 $ ( 6,318 ) $ 135,775 Provision for credit losses 6,460 — — — 6,460 Noninterest income (loss) 28,493 3,362 5,812 ( 374 ) 37,293 Noninterest expense 101,881 2,039 4,928 360 109,208 Income (loss) before income taxes 61,948 1,609 895 ( 7,052 ) 57,400 Income tax expense (benefit) 12,722 416 4 ( 1,820 ) 11,322 Net income (loss) $ 49,226 $ 1,193 $ 891 $ ( 5,232 ) $ 46,078 Total assets $ 17,362,799 $ 37,168 $ 79,452 $ ( 5,336 ) $ 17,474,083 Goodwill $ 988,898 $ 2,767 — — $ 991,665 42 Table of Contents