What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-08-07 compared with 2024-05-08 · 393 added, 194 removed, 1222 unchanged (32% of the section changed)

7 unchanged sentences

Cash and cash equivalents 851,906 801,351

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)

Securities held to maturity (net of allowance for credit losses of $ 32 at each of June 30, 2024 and December 31, 2023) (fair value of $ 1,052,705 and $ 1,121,830 , respectively)

1,174,663 1,221,464

38 unchanged sentences

(In Thousands, Except Share Data)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2024 2023 2024 2023

Interest income

20 unchanged sentences

Gain on debt extinguishment — — 56 —

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

BOLI income 2,701 2,402 5,392 5,405

22 unchanged sentences

(In Thousands)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2024 2023 2024 2023

Net income $ 38,846 $ 28,643 $ 78,255 $ 74,721

1 unchanged sentence

Securities available for sale:

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

Unrealized holding gains (losses) on securities 468 ( 15,930 ) ( 4,166 ) ( 399 )

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

Amortization of unrealized holding losses on securities transferred to the held to maturity category 2,421 2,252 4,859 4,580

6 unchanged sentences

Total defined benefit pension and post-retirement benefit plans 79 86 158 172

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

Other comprehensive income, net of tax 2,827 863 140 17,576

Comprehensive income $ 41,673 $ 29,506 $ 78,395 $ 92,297

4 unchanged sentences

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

Three Months Ended March 31, 2024 Shares Amount

Six Months Ended June 30, 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

7 unchanged sentences

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

Net income — $ — $ — $ — $ 38,846 $ — $ 38,846

Other comprehensive income — — — — — 2,827 2,827

Comprehensive income 41,673

Cash dividends ($ 0.22 per share)

— — — — ( 12,640 ) — ( 12,640 )

Issuance of common stock for stock-based compensation awards 63,064 — 2,149 ( 2,205 ) — — ( 56 )

Stock-based compensation expense — — — 3,374 — — 3,374

Balance at June 30, 2024 56,367,924 $ 296,483 $ ( 97,534 ) $ 1,304,782 $ 1,005,086 $ ( 154,116 ) $ 2,354,701

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

Three Months Ended March 31, 2023 Shares Amount

Six Months Ended June 30, 2023 Shares Amount

Balance at January 1, 2023 55,953,104 $ 296,483 $ ( 111,577 ) $ 1,302,422 $ 857,725 $ ( 209,037 ) $ 2,136,016

7 unchanged sentences

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

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

Other comprehensive income — — — — — 863 863

Comprehensive income 29,506

Cash dividends ($ 0.22 per share)

— — — — ( 12,573 ) — ( 12,573 )

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

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

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

See Notes to Consolidated Financial Statements.

2 unchanged sentences

(In Thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Operating activities

9 unchanged sentences

Gains on sales of mortgage loans held for sale ( 9,734 ) ( 9,417 )

Losses on sales of securities — 22,438

Debt prepayment benefit ( 56 ) —

1 unchanged sentence

Stock-based compensation expense 7,366 6,840

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

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

Increase in other assets ( 6,802 ) ( 26,264 )

(Decrease) increase in other liabilities ( 15,891 ) 6,076

Net cash provided by (used in) operating activities 15,980 ( 31,540 )

10 unchanged sentences

Other, net 191 1,668

Net cash provided by (used in) investing activities 29,968 ( 153,231 )

Net cash (used in) provided by investing activities ( 43,479 ) 274,113

Financing activities

1 unchanged sentence

Net increase in interest-bearing deposits 222,650 1,288,198

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

Net decrease in short-term borrowings ( 74,836 ) ( 454,927 )

Repayment of long-term debt ( 245 ) —

Cash paid for dividends ( 25,293 ) ( 25,134 )

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

Net cash provided by financing activities 78,054 128,334

Net increase in cash and cash equivalents 50,555 370,907

16 unchanged sentences

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

See Note 15, “Subsequent Events” for a discussion of the Bank’s sale of substantially all of the assets of Renasant Insurance, Inc.

effective July 1, 2024.

Basis of Presentation :

2 unchanged sentences

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 :

2 unchanged sentences

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):

In March 2023, the Financial Accounting Standards Board (“FASB”) 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.

The adoption of this accounting pronouncement did not have an 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 adds a number of disclosure requirements to the Codification in response to the 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.

For SEC reporting entities, the effective dates will be the respective effective dates of the SEC’s removal of the related disclosure requirements from Regulation S-X or Regulation S-K .

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.

ASU 2023-06 is not expected to have significant impact on the Company’s financial statements.

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

11 unchanged sentences

The amortized cost and fair value of securities available for sale were as follows as of the dates presented in the tables below.

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

March 31, 2024

There was no allowance for credit losses allocated to any of the Company’s available for sale securities as of June 30, 2024 or December 31, 2023.

June 30, 2024

Obligations of states and political subdivisions $ 20,355 $ 68 $ ( 2,273 ) $ 18,150

20 unchanged sentences

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

March 31, 2024

June 30, 2024

Obligations of states and political subdivisions $ 286,354 $ 21 $ ( 41,326 ) $ 245,049

21 unchanged sentences

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.

Securities sold during the six months ended June 30, 2024 and the three and six months ended June 30, 2023 are presented in the tables below.

With respect to the securities sold during the first six months ended June 30, 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.

There were no securities sold during the second quarter of 2024.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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

Three months ended March 31, 2024

Six months ended June 30, 2024

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

5 unchanged sentences

$ 196,537 $ 177,185 $ ( 19,352 )

Carrying Value Net Proceeds Loss

Three months ended June 30, 2023

Obligations of other U.S.

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

Obligations of states and political subdivisions 104,950 99,439 ( 5,511 )

Residential mortgage backed securities:

Government agency mortgage backed securities 137,196 130,602 ( 6,594 )

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

Commercial mortgage backed securities:

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

Government agency collateralized mortgage obligations 40,197 38,099 ( 2,098 )

$ 511,419 $ 488,981 $ ( 22,438 )

Six months ended June 30, 2023

Obligations of other U.S.

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

Obligations of states and political subdivisions 104,950 99,439 ( 5,511 )

Residential mortgage backed securities:

Government agency mortgage backed securities 137,196 130,602 ( 6,594 )

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

Commercial mortgage backed securities:

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

Government agency collateralized mortgage obligations 40,197 38,099 ( 2,098 )

$ 511,419 $ 488,981 $ ( 22,438 )

At June 30, 2024 and December 31, 2023, securities with a carrying value of $ 834,625 and $ 880,715 , respectively, were pledged to secure government, public and trust deposits.

Securities with a carrying value of $ 13,835 and $ 14,329 were pledged as collateral for short-term borrowings and derivative instruments at June 30, 2024 and December 31, 2023, respectively.

The amortized cost and fair value of securities at June 30, 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.

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

22 unchanged sentences

Available for Sale:

March 31, 2024

June 30, 2024

Obligations of states and political subdivisions — $ — $ — 7 $ 12,928 $ ( 2,273 ) 7 $ 12,928 $ ( 2,273 )

26 unchanged sentences

Held to Maturity:

March 31, 2024

June 30, 2024

Obligations of states and political subdivisions 1 $ 2,351 $ ( 33 ) 127 $ 241,015 $ ( 41,293 ) 128 $ 243,366 $ ( 41,326 )

24 unchanged sentences

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.

As of June 30, 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.

4 unchanged sentences

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.

Based upon its review of these factors as of June 30, 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.

See Note 11, “Other Comprehensive Income” for more information on the Company’s unrealized losses on securities.

The allowance for credit losses on held to maturity securities was $ 32 at June 30, 2024 and December 31, 2023.

The Company monitors the credit quality of debt securities held to maturity using bond investment grades assigned by nationally recognized statistical 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.

As of June 30, 2024, all of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies.

Note 3 – Loans

36 unchanged sentences

Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

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:

5 unchanged sentences

Past Due Current

March 31, 2024

June 30, 2024

Commercial, financial, agricultural $ 1,248 $ 22 $ 1,840,648 $ 1,841,918 $ 257 $ 1,296 $ 4,291 $ 5,844 $ 1,847,762

50 unchanged sentences

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.

All modifications for the six months ended June 30, 2024 and 2023 and which met the disclosure criteria in ASU 2022-02 were performing in accordance with their modified terms at June 30, 2024 and 2023, respectively.

Unused commitments totaled $ 338 at June 30, 2024.

There were $ 1,600 in unused commitments at June 30, 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.

The following tables present the amortized cost basis of loans that were experiencing financial difficulty, modified during the three and six months ended June 30, 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.

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

Three Months Ended June 30, 2024

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

Commercial, financial, agricultural $ — $ — $ 138 $ 138 0.01 %

Real estate – commercial mortgage:

Non-owner occupied 2,506 — — 2,506 0.06

Installment loans to individuals — 1 — 1 —

Loans, net of unearned income $ 2,506 $ 1 $ 138 $ 2,645 0.02 %

Six Months Ended June 30, 2024

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

Commercial, financial, agricultural $ 1,741 $ 165 $ — $ 517 $ — $ 138 $ 2,561 0.14 %

Real estate – 1-4 family mortgage:

6 unchanged sentences

Loans, net of unearned income $ 9,172 $ 2,891 $ 349 $ 518 $ 270 $ 138 $ 13,338 0.11 %

payment delay includes extension of the amortization period.

Three Months Ended March 31, 2023

Interest Rate Reduction % Total Loans by Class

Three Months Ended June 30, 2023

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

Commercial, financial, agricultural $ — $ 1,210 $ — $ 1,210 0.07 %

Real estate – construction:

Residential — 4,366 — 4,366 1.42

Real estate – 1-4 family mortgage:

Home equity 9 — — 9 —

Real estate – commercial mortgage:

Owner-occupied $ 155 0.01 %

Non-owner occupied 1,029 0.03

Land development — 97 277 374 0.33

Loans, net of unearned income $ 9 $ 5,673 $ 277 $ 5,959 0.05 %

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)

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Six Months Ended June 30, 2023

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

Commercial, financial, agricultural $ — $ 1,210 $ — $ 1,210 0.07 %

Real estate – construction:

Residential — 4,366 — 4,366 1.42

Real estate – 1-4 family mortgage:

Primary — 24.0 35.7

Home equity 9 — — 9 —

Real estate – commercial mortgage:

1 unchanged sentence

Non-owner occupied 1,026 — — 1,026 0.03

Installment loans to individuals — — 17.0

payment delay includes extension of the amortization period.

Three months ended March 31, 2024

Land development — 97 277 374 0.33

Total real estate – commercial mortgage 1,181 97 277 1,555 0.03 %

Loans, net of unearned income $ 1,190 $ 5,673 $ 277 $ 7,140 0.06 %

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 periods presented.

Three months ended June 30, 2024

Loan Type Financial Effect

Term Extension

Real Estate - Commercial Mortgage - Non-owner Occupied Extended the term 8 months

Combination - Term Extension and Payment Delay

Installment loans to individuals Extended the term and delayed the payment 61 months

Combination - Interest Rate Reduction, Term Extension and Payment Delay

Commercial, financial, agricultural Reduced the interest rate 181 basis points and extended the term and delayed the payment 59 months

Installment loans to individuals Reduced the interest rate 324 basis points and extended the term and delayed the payment 60 months

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Six months ended June 30, 2024

Loan Type Financial Effect

Interest Rate Reduction

Commercial, financial, agricultural Reduced the interest rate 39 basis points

Real Estate - Commercial Mortgage - Owner Occupied Reduced the interest rate 47 basis points

Term Extension

Commercial, financial, agricultural Extended the term 7 months

Real estate – 1-4 family mortgage - Primary Extended the term 24 months

Real Estate - Commercial Mortgage - Owner Occupied Extended the term 10 months

Real Estate - Commercial Mortgage - Non-owner Occupied Extended the term 8 months

Payment Delay

Real estate – 1-4 family mortgage - Primary Delayed the payment 36 months

Real Estate - Commercial Mortgage - Owner Occupied Delayed the payment 9 months

Real Estate - Commercial Mortgage - Non-owner Occupied Delayed the payment 17 months

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

Installment loans to individuals Extended the term and delayed the payment 61 months

Interest Rate Reduction and Term Extension

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

Combination - Interest Rate Reduction, Term Extension and Payment Delay

Commercial, financial, agricultural Reduced the interest rate 181 basis points and extended the term and delayed the payment 59 months

Installment loans to individuals Reduced the interest rate 324 basis points and extended the term and delayed the payment 60 months

Three months ended June 30, 2023

Loan Type Financial Effect

Interest Rate Reduction

Real estate – 1-4 family mortgage - Home Equity Reduced the interest rate 300 basis points

Term Extension

Commercial, financial, agricultural Extended the term 2 months

Real estate – Construction - Residential Extended the term 5 months

Real Estate - Commercial Mortgage - Land Development Extended the term 8 months

Payment Delay

Real Estate - Commercial Mortgage - Land Development Delayed the payment 3 months

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

payment delay includes extension of the amortization period.

Three Months Ended March 31, 2023

Interest Rate Reduction (in basis points)

Real estate – commercial mortgage:

Owner-occupied 68

Non-owner occupied 12

Six months ended June 30, 2023

Loan Type Financial Effect

Interest Rate Reduction

Real estate – 1-4 family mortgage - Home Equity Reduced the interest rate 300 basis points

Real Estate - Commercial Mortgage - Owner Occupied Reduced the interest rate 68 basis points

Real Estate - Commercial Mortgage - Non-owner Occupied Reduced the interest rate 12 basis points

Term Extension

Commercial, financial, agricultural Extended the term 2 months

Real estate – Construction - Residential Extended the term 5 months

Real Estate - Commercial Mortgage - Land Development Extended the term 8 months

Payment Delay

Real Estate - Commercial Mortgage - Land Development Delayed the payment 3 months

Credit Quality

3 unchanged sentences

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.

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 that, 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.

2 unchanged sentences

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

March 31, 2024

June 30, 2024

Commercial, Financial, Agricultural $ 117,838 $ 271,757 $ 257,778 $ 148,375 $ 85,797 $ 77,080 $ 864,555 $ 4,340 $ 1,827,520

16 unchanged sentences

Real Estate - 1-4 Family Mortgage $ 75,861 $ 126,561 $ 150,861 $ 81,526 $ 38,046 $ 38,446 $ 34,783 $ 1,515 $ 547,599

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

Primary 3,001 6,692 7,952 5,733 3,149 7,600 1,334 856 36,317

3 unchanged sentences

Home Equity — 1,011 10 967 — 47 28,599 — 30,634

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Term Loans Amortized Cost Basis by Origination Year

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

Pass — 1,011 10 967 — — 28,406 — 30,394

34 unchanged sentences

Commercial, Financial, Agricultural $ 312,902 $ 289,264 $ 162,535 $ 98,894 $ 51,162 $ 38,518 $ 883,302 $ 19,440 $ 1,856,017

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Term Loans Amortized Cost Basis by Origination Year

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

Pass 311,312 288,249 161,902 97,771 50,936 32,169 870,792 19,338 1,832,469

3 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Term Loans Amortized Cost Basis by Origination Year

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

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

56 unchanged sentences

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

March 31, 2024

June 30, 2024

Commercial, Financial, Agricultural $ — $ — $ — $ — $ — $ 20,242 $ — $ — $ 20,242

89 unchanged sentences

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

The following tables disclose gross charge-offs by year of origination for the six months ended June 30, 2024 and year ended December 31, 2023, respectively:

June 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Total Charge-offs

Commercial, financial, agricultural $ — $ — $ 73 $ — $ — $ 251 $ 211 $ 535

4 unchanged sentences

Total real estate – 1-4 family mortgage — — 116 27 — 147 — 290

Real estate – commercial mortgage:

Owner-occupied — — 37 — — — — 37

Non-owner occupied — — — — — 5,690 — 5,690

Total real estate – commercial mortgage — — 37 — — 5,690 — 5,727

Installment loans to individuals — 30 58 — — 642 — 730

21 unchanged sentences

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.

The allowance for credit losses is an estimate of expected losses inherent within the Company’s loans held for investment 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.

5 unchanged sentences

The Company has made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses in the Company’s loan portfolio.

As of 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.

As of June 30, 2024 and December 31, 2023, the Company had accrued interest receivable for loans of $ 56,403 and $ 54,804 , respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets.

Renasant Corporation and Subsidiaries

6 unchanged sentences

Loans to Individuals Total

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Allowance for credit losses:

5 unchanged sentences

Ending balance $ 44,951 $ 18,896 $ 47,421 $ 77,125 $ 2,515 $ 8,963 $ 199,871

Six Months Ended June 30, 2024

Allowance for credit losses:

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

Charge-offs ( 535 ) ( 290 ) ( 5,727 ) ( 730 ) ( 7,282 )

Recoveries 871 73 105 18 570 1,637

Net (charge-offs) recoveries 336 — ( 217 ) ( 5,622 ) 18 ( 160 ) ( 5,645 )

Provision for (recovery of) credit losses on loans 635 284 355 5,727 ( 18 ) ( 45 ) 6,938

Ending balance $ 44,951 $ 18,896 $ 47,421 $ 77,125 $ 2,515 $ 8,963 $ 199,871

Period-End Amount Allocated to:

12 unchanged sentences

Mortgage Lease Financing Installment Loans to Individuals Total

Three Months Ended March 31, 2023

Three Months Ended June 30, 2023

Allowance for credit losses:

Beginning balance $ 44,678 $ 19,959 $ 45,981 $ 72,770 $ 2,437 $ 9,467 $ 195,292

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

Charge-offs ( 4,939 ) ( 57 ) ( 212 ) ( 397 ) — ( 580 ) ( 6,185 )

3 unchanged sentences

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

Six Months Ended June 30, 2023

Allowance for credit losses:

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

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

Charge-offs ( 5,468 ) ( 57 ) ( 215 ) ( 5,512 ) — ( 1,390 ) ( 12,642 )

Recoveries 1,999 — 194 489 11 1,316 4,009

Net (charge-offs) recoveries ( 3,469 ) ( 57 ) ( 21 ) ( 5,023 ) 11 ( 74 ) ( 8,633 )

Provision for (recovery of) credit losses on loans 550 68 1,728 8,892 6 ( 284 ) 10,960

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

Period-End Amount Allocated to:

6 unchanged sentences

Nonaccruing loans with no allowance for credit losses $ 2,021 $ — $ 10,516 $ 3,969 $ — $ — $ 16,506

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 recorded a provision for credit losses on loans of $ 4,300 during the second quarter of 2024, as compared to a provision for credit losses on loans of $ 3,000 recorded in the second 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.

The provision for credit losses on loans of $ 4,300 in the second quarter of 2024 was primarily driven by loan growth and changes in credit metrics that influence the Company’s expectations of future losses, including but not limited to the balance of nonperforming loans, underlying collateral values, and historical levels of charge-offs.

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.

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, 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

Three Months Ended June 30, 2024 2023

Allowance for credit losses on unfunded loan commitments:

2 unchanged sentences

Ending balance $ 15,718 $ 17,618

Six Months Ended June 30, 2024 2023

Allowance for credit losses on unfunded loan commitments:

Beginning balance $ 16,918 $ 20,118

Recovery of credit losses on unfunded loan commitments ( 1,200 ) ( 2,500 )

Ending balance $ 15,718 $ 17,618

Note 5 – Other Real Estate Owned

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

(In Thousands)

The following table provides details of the Company’s other real estate owned (“OREO”), net of valuation allowances and direct write-downs, as of the dates presented:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Residential real estate $ 1,004 $ 1,211

9 unchanged sentences

Other ( 2,272 )

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.

Balance at June 30, 2024 $ 7,366

At June 30, 2024 and December 31, 2023, the amortized cost of loans secured by Real Estate - 1-4 Family Mortgage in the process of foreclosure was $ 2,182 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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

2024 2023 2024 2023

Repairs and maintenance $ 147 $ 28 $ 211 $ 44

1 unchanged sentence

Impairments 39 8 67 8

Net gains on OREO sales ( 13 ) ( 95 )

Net (gains) losses on OREO sales ( 102 ) 6 ( 115 ) ( 89 )

Rental income ( 2 ) ( 2 ) ( 3 ) ( 4 )

2 unchanged sentences

(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.

The carrying amounts of goodwill by operating segments for the six months ended June 30, 2024 are set forth in the table below.

Community Banks Insurance Total

1 unchanged sentence

Additions to goodwill and other adjustments — — —

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Balance at June 30, 2024 $ 988,898 $ 2,767 $ 991,665

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

2 unchanged sentences

Amortization Net Carrying

March 31, 2024

June 30, 2024

Core deposit intangibles $ 82,492 $ ( 70,185 ) $ 12,307

6 unchanged sentences

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

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2024 2023 2024 2023

Amortization expense for:

3 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Core Deposit Intangibles Customer Relationship Intangible Total

16 unchanged sentences

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

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.

There was no valuation adjustment on MSRs during the six months ended June 30, 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 .

4 unchanged sentences

Amortization ( 4,726 )

Balance at March 31, 2024 $ 71,596

Balance at June 30, 2024 $ 72,092

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2024 December 31, 2023

Unpaid principal balance $ 5,874,481 $ 7,826,182

8 unchanged sentences

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.

The Company recorded servicing fees of $ 3,780 and $ 4,674 for the three months ended June 30, 2024 and 2023, respectively, and servicing fees of $ 7,869 and $ 8,939 for the six months ended June 30, 2024 and 2023, respectively, all of which are included in “Mortgage banking income” in the Consolidated Statements of Income.

Note 8 - Employee Benefit and Deferred Compensation Plans

3 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Pension Benefits Other Benefits

Three Months Ended Three Months Ended

March 31, March 31,

June 30, June 30,

2024 2023 2024 2023

3 unchanged sentences

Net periodic benefit cost (return) $ 108 $ 70 $ ( 18 ) $ ( 11 )

Pension Benefits Other Benefits

Six Months Ended Six Months Ended

June 30, June 30,

2024 2023 2024 2023

Interest cost $ 454 $ 497 $ 11 $ 11

Expected return on plan assets ( 496 ) ( 618 ) — —

Recognized actuarial loss (gain) 258 262 ( 47 ) ( 31 )

Net periodic benefit cost (return) $ 216 $ 141 $ ( 36 ) $ ( 20 )

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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.

There were no stock options granted or outstanding, nor compensation expense associated with options recorded, during the six months ended June 30, 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:

The following table summarizes the changes in restricted stock as of and for the six months ended June 30, 2024:

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

4 unchanged sentences

Nonvested at end of period 264,623 $ 35.32 816,588 $ 34.98

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.

During the six months ended June 30, 2024, the Company reissued 203,248 shares from treasury in connection with awards of restricted stock.

The Company recorded total stock-based compensation expense of $ 3,374 and $ 3,395 for the three months ended June 30, 2024 and 2023, respectively, and $ 7,366 and $ 6,840 for the six months ended June 30, 2024 and 2023, respectively.

Note 9 – Derivative Instruments

10 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Balance Sheet March 31, 2024 December 31, 2023

Balance Sheet June 30, 2024 December 31, 2023

Location Notional Amount Fair Value Notional Amount Fair Value

10 unchanged sentences

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

Three Months Ended March 31,

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

2024 2023 2024 2023

Interest rate contracts:

11 unchanged sentences

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

Balance Sheet June 30, 2024 December 31, 2023

Location Notional Amount Fair Value Notional Amount Fair Value

9 unchanged sentences

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

There were no ineffective portions for the 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).”

There were no ineffective portions for the six months ended June 30, 2024 or 2023.

The impact on other comprehensive income for the six months ended June 30, 2024 and 2023 is discussed in Note 11, “Other Comprehensive Income.”

Renasant Corporation and Subsidiaries

5 unchanged sentences

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

Balance Sheet June 30, 2024 December 31, 2023

Location Notional Amount Fair Value Notional Amount Fair Value

3 unchanged sentences

Amount of Gain (Loss) Recognized in Income

Income Statement Three Months Ended March 31,

Income Statement Three Months Ended June 30, Six Months Ended June 30,

Location 2024 2023 2024 2023

5 unchanged sentences

Carrying Amount of the Hedged Liability Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Liability

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

Balance Sheet Location June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023

Long-term debt $ 80,540 $ 81,791 $ 18,390 $ 17,052

6 unchanged sentences

Offsetting Derivative Assets Offsetting Derivative Liabilities

2024 December 31, 2023 March 31,

2024 December 31, 2023 June 30,

2024 December 31, 2023

6 unchanged sentences

Net amounts $ 5,236 $ 5,421 $ 2,944 $ 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,

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.

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 10 – Fair Value Measurements

23 unchanged sentences

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.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Mortgage loans held for sale in loans held for sale :

3 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Level 1 Level 2 Level 3 Totals

March 31, 2024

June 30, 2024

Financial assets:

18 unchanged sentences

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

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

There were no such transfers between levels of the fair value hierarchy during the six months ended June 30, 2024.

For the six months ended June 30, 2024 and 2023, respectively, there were no gains or losses included in earnings that were attributable to the change in unrealized gains or losses related to assets or liabilities held at the end of each respective period that were measured on a recurring basis using significant unobservable inputs.

Nonrecurring Fair Value Measurements

2 unchanged sentences

The following tables provide the fair value measurement for assets measured at fair value on a nonrecurring basis that were still held on the Consolidated Balance Sheets as of the dates presented and the level within the fair value hierarchy each is classified:

March 31, 2024 Level 1 Level 2 Level 3 Totals

June 30, 2024 Level 1 Level 2 Level 3 Totals

Individually evaluated loans, net of allowance for credit losses $ — $ — $ 20,826 $ 20,826

1 unchanged sentence

Total $ — $ — $ 20,887 $ 20,887

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

December 31, 2023 Level 1 Level 2 Level 3 Totals

3 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

selling costs.

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

3 unchanged sentences

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

Individually evaluated loans that were measured or re-measured at fair value had a carrying value of $ 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.

Individually evaluated loans that were measured or re-measured at fair value had a carrying value of $ 23,203 and $ 22,328 at June 30, 2024 and December 31, 2023, respectively, and a specific reserve for these loans of $ 2,377 and $ 1,025 was included in the allowance for credit losses as of such dates.

Other real estate owned :

4 unchanged sentences

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.

The following table presents OREO measured at fair value on a nonrecurring basis that was still held on the Consolidated Balance Sheets as of June 30, 2024.

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

6 unchanged sentences

Because these factors are not all observable and include management’s assumptions, mortgage servicing rights are classified within Level 3 of the fair value hierarchy.

Mortgage servicing rights were carried at amortized cost at 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:

Mortgage servicing rights were carried at amortized cost at June 30, 2024 and December 31, 2023.

There were no valuation adjustments on MSRs during the six months ended June 30, 2024 or 2023.

The following table presents information as of June 30, 2024 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:

Financial instrument Fair

3 unchanged sentences

OREO $ 61 Appraised value of property less estimated costs to sell Estimated costs to sell 4 - 10 %

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Fair Value Option

1 unchanged sentence

Electing to measure these assets at fair value reduces certain timing differences and better matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them.

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.

A net loss of $ 251 and net gain of $ 1,133 resulting from fair value changes of these mortgage loans were recorded in income during the six months ended June 30, 2024 and 2023, respectively.

These amounts do not reflect changes in fair values of related derivative instruments used to hedge exposure to market-related risks associated with these mortgage loans.

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.

1 unchanged sentence

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

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:

The following table summarizes the differences between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of June 30, 2024 and December 31, 2023:

Fair Value Aggregate

Balance Difference

March 31, 2024

June 30, 2024

Mortgage loans held for sale measured at fair value $ 266,406 $ 261,395 $ 5,011

3 unchanged sentences

The carrying amounts and estimated fair values of the Company’s financial instruments, including those assets and liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis, were as follows as of the dates presented:

As of March 31, 2024 Carrying

As of June 30, 2024 Carrying

Value Level 1 Level 2 Level 3 Total

33 unchanged sentences

Notes to Consolidated Financial Statements (Unaudited)

Note 12 – Other Comprehensive Income (Loss)

Note 11 – Other Comprehensive Income

(In Thousands)

Changes in the components of other comprehensive income (loss), net of tax, were as follows for the periods presented:

Changes in the components of other comprehensive income, net of tax, were as follows for the periods presented:

Pre-Tax Tax Expense

(Benefit) Net of Tax

Three months ended March 31, 2024

Three months ended June 30, 2024

Securities available for sale:

Unrealized holding gains on securities $ 648 $ 180 $ 468

Amortization of unrealized holding losses on securities transferred to the held to maturity category 3,252 831 2,421

Total securities available for sale 3,900 1,011 2,889

Derivative instruments:

Unrealized holding losses on derivative instruments ( 188 ) ( 47 ) ( 141 )

Total derivative instruments ( 188 ) ( 47 ) ( 141 )

Defined benefit pension and post-retirement benefit plans:

Amortization of net actuarial loss recognized in net periodic pension cost 105 26 79

Total defined benefit pension and post-retirement benefit plans 105 26 79

Total other comprehensive income $ 3,817 $ 990 $ 2,827

Three months ended June 30, 2023

Securities available for sale:

Unrealized holding losses on securities $ ( 21,283 ) $ ( 5,353 ) $ ( 15,930 )

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

Amortization of unrealized holding losses on securities transferred to the held to maturity category 3,026 774 2,252

6 unchanged sentences

Total defined benefit pension and post-retirement benefit plans 115 29 86

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

Three months ended March 31, 2023

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Pre-Tax Tax Expense

(Benefit) Net of Tax

Six months ended June 30, 2024

Securities available for sale:

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

Unrealized holding losses on securities $ ( 5,544 ) $ ( 1,378 ) $ ( 4,166 )

Amortization of unrealized holding losses on securities transferred to the held to maturity category 6,527 1,668 4,859

7 unchanged sentences

Total other comprehensive income $ 241 $ 101 $ 140

Six months ended June 30, 2023

Securities available for sale:

Unrealized holding losses on securities $ ( 569 ) $ ( 170 ) $ ( 399 )

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

Amortization of unrealized holding losses on securities transferred to the held to maturity category 6,154 1,574 4,580

Total securities available for sale 28,023 7,026 20,997

Derivative instruments:

Unrealized holding losses on derivative instruments ( 4,823 ) ( 1,230 ) ( 3,593 )

Total derivative instruments ( 4,823 ) ( 1,230 ) ( 3,593 )

Defined benefit pension and post-retirement benefit plans:

Amortization of net actuarial loss recognized in net periodic pension cost 231 59 172

Total defined benefit pension and post-retirement benefit plans 231 59 172

Total other comprehensive income $ 23,431 $ 5,855 $ 17,576

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

20 unchanged sentences

Net income per common share - diluted $ 0.69 $ 0.51

Six Months Ended

Net income applicable to common stock $ 78,255 $ 74,721

Average common shares outstanding 56,275,628 56,058,585

Net income per common share - basic $ 1.39 $ 1.33

Net income applicable to common stock $ 78,255 $ 74,721

Average common shares outstanding 56,275,628 56,058,585

Effect of dilutive stock-based compensation 332,319 271,710

Average common shares outstanding - diluted 56,607,947 56,330,295

Net income per common share - diluted $ 1.38 $ 1.33

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:

1 unchanged sentence

Number of shares 1,000 179,226

Six Months Ended

Number of shares 5,449 182,226

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 13 – Regulatory Matters

6 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Capital Tiers Tier 1 Capital to

20 unchanged sentences

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

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Amount Ratio Amount Ratio

15 unchanged sentences

• 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.

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

• The Insurance segment includes a full service insurance agency offering all major lines of commercial and personal insurance through major carriers.

Effective July 1, 2024, the Bank sold substantially all of the assets of its Insurance segment.

See Note 15, “Subsequent Events” for more discussion.

• 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.

2 unchanged sentences

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

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.

2 unchanged sentences

Management Other Consolidated

Three months ended March 31, 2024

Three months ended June 30, 2024

Net interest income (loss) $ 131,424 $ 461 $ 16 $ ( 6,875 ) $ 125,026

7 unchanged sentences

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

Three months ended March 31, 2023

Three months ended June 30, 2023

Net interest income (loss) $ 136,381 $ 428 $ 17 $ ( 6,610 ) $ 130,216

7 unchanged sentences

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Banks Insurance Wealth

Management Other Consolidated

Six months ended June 30, 2024

Net interest income (loss) $ 261,110 $ 942 $ 32 $ ( 13,768 ) $ 248,316

Provision for credit losses 5,738 — — — 5,738

Noninterest income (loss) 61,220 6,473 13,201 ( 751 ) 80,143

Noninterest expense 209,784 4,392 9,936 776 224,888

Income (loss) before income taxes 106,808 3,023 3,297 ( 15,295 ) 97,833

Income tax expense (benefit) 22,640 785 100 ( 3,947 ) 19,578

Net income (loss) $ 84,168 $ 2,238 $ 3,197 $ ( 11,348 ) $ 78,255

Total assets $ 17,462,835 $ 41,988 $ 5,043 $ 525 $ 17,510,391

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

Six months ended June 30, 2023

Net interest income (loss) $ 278,169 $ 714 $ 36 $ ( 12,928 ) $ 265,991

Provision for credit losses 8,460 — — — 8,460

Noninterest income (loss) 37,240 6,221 11,862 ( 804 ) 54,519

Noninterest expense 205,163 4,109 9,335 766 219,373

Income (loss) before income taxes 101,786 2,826 2,563 ( 14,498 ) 92,677

Income tax expense (benefit) 20,980 732 ( 14 ) ( 3,742 ) 17,956

Net income (loss) $ 80,806 $ 2,094 $ 2,577 $ ( 10,756 ) $ 74,721

Total assets $ 17,181,988 $ 37,867 $ 4,757 $ ( 270 ) $ 17,224,342

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

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 15 – Subsequent Events

(In Thousands, Except Share Amounts)

Sale of Renasant Insurance, Inc.

Effective July 1, 2024, Renasant Bank sold substantially all of the assets of Renasant Insurance, Inc.

for cash proceeds to Renasant Bank of $ 56,390 .

The sale resulted in an estimated after-tax impact to earnings of $ 36,400 , which is net of estimated transaction-related expenses.

The financial effects of the sale will be reflected in the third quarter of 2024.

Proposed Merger with The First Bancshares, Inc.

On July 29, 2024, the Company and The First Bancshares, Inc., a Mississippi corporation (“The First”), entered into an agreement and plan of merger, dated as of July 29, 2024 (the “Merger Agreement”), pursuant to which, subject to the terms and conditions set forth therein, among other things, The First will merge with and into the Company, with the Company as the surviving entity in such merger (the “Merger”).

Immediately following the Merger, The First’s subsidiary bank and Renasant Bank will enter into a subsidiary plan of merger, pursuant to which The First’s subsidiary bank will merge with and into Renasant Bank immediately after the Merger, with Renasant Bank as the surviving entity in such merger.

Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger, each outstanding share of common stock of The First will be converted into the right to receive one share of common stock of the Company.

The Merger is expected to close in the first half of 2025 and is subject to certain closing conditions, including the receipt of required regulatory approvals and requisite approval by the stockholders of each company.

Offering of Common Stock

On July 31, 2024, the Company completed its public offering of an aggregate of 7,187,500 shares of its common stock at a price of $ 32.00 per share, including 937,500 shares of common stock upon the exercise in full by the underwriters of their option to purchase additional shares.

The aggregate gross proceeds were $ 230,000 .

The net proceeds of the offering after deducting underwriting discounts and other estimated offering expenses are expected to be approximately $ 217,000 .

The Company intends to use the net proceeds of the offering for general corporate purposes to support its continued growth, including investments in Renasant Bank and future strategic acquisitions.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements