RENASANT CORP 10-Q

Item 1. FINANCIAL STATEMENTS Renasant Corporation and Subsidiaries Consolidated Balance Sheets (In Thousands, Except Share Data) (Unaudited) June 30, 2024 December 31, 2023 Assets Cash and due from banks $ 224,302 $ 206,680 Interest-bearing balances with banks 627,604 594,671 Cash and cash equivalents 851,906 801,351 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 Securities available for sale, at fair value 749,685 923,279 Loans held for sale, at fair value 266,406 179,756 Loans held for investment, net of unearned income 12,604,755 12,351,230 Allowance for credit losses on loans ( 199,871 ) ( 198,578 ) Loans, net 12,404,884 12,152,652 Premises and equipment, net 280,966 283,195 Other real estate owned, net 7,366 9,622 Goodwill 991,665 991,665 Other intangible assets, net 16,397 18,795 Bank-owned life insurance 387,791 382,584 Mortgage servicing rights 72,092 91,688 Other assets 306,570 304,484 Total assets $ 17,510,391 $ 17,360,535 Liabilities and shareholders’ equity Liabilities Deposits Noninterest-bearing $ 3,539,453 $ 3,583,675 Interest-bearing 10,715,760 10,493,110 Total deposits 14,255,213 14,076,785 Short-term borrowings 232,741 307,577 Long-term debt 428,677 429,400 Other liabilities 239,059 249,390 Total liabilities 15,155,690 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; 56,367,924 and 56,142,207 shares outstanding, respectively 296,483 296,483 Treasury stock, at cost – 2,928,801 and 3,154,518 shares, respectively ( 97,534 ) ( 105,249 ) Additional paid-in capital 1,304,782 1,308,281 Retained earnings 1,005,086 952,124 Accumulated other comprehensive loss, net of taxes ( 154,116 ) ( 154,256 ) Total shareholders’ equity 2,354,701 2,297,383 Total liabilities and shareholders’ equity $ 17,510,391 $ 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Interest income Loans $ 201,927 $ 176,188 $ 396,625 $ 339,712 Securities Taxable 9,258 12,300 18,763 25,553 Tax-exempt 1,152 1,700 2,347 3,538 Other 7,874 6,978 15,655 12,408 Total interest income 220,211 197,166 433,390 381,211 Interest expense Deposits 87,621 51,391 170,234 84,257 Borrowings 7,564 15,559 14,840 30,963 Total interest expense 95,185 66,950 185,074 115,220 Net interest income 125,026 130,216 248,316 265,991 Provision for credit losses on loans 4,300 3,000 6,938 10,960 Recovery of credit losses on unfunded commitments ( 1,000 ) ( 1,000 ) ( 1,200 ) ( 2,500 ) Provision for credit losses 3,300 2,000 5,738 8,460 Net interest income after provision for credit losses 121,726 128,216 242,578 257,531 Noninterest income Service charges on deposit accounts 10,286 9,733 20,792 18,853 Fees and commissions 3,944 4,987 7,893 9,663 Insurance commissions 2,758 2,809 5,474 5,255 Wealth management revenue 5,684 5,338 11,353 10,478 Mortgage banking income 9,698 9,771 21,068 18,288 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 Other 3,691 4,624 8,115 9,015 Total noninterest income 38,762 17,226 80,143 54,519 Noninterest expense Salaries and employee benefits 70,731 70,637 142,201 140,469 Data processing 3,945 3,684 7,752 7,317 Net occupancy and equipment 11,844 11,865 23,233 23,270 Other real estate owned 105 51 212 81 Professional fees 3,195 4,012 6,543 7,479 Advertising and public relations 3,807 3,482 8,693 8,168 Intangible amortization 1,186 1,369 2,398 2,795 Communications 2,112 2,226 4,136 4,206 Other 15,051 12,839 29,720 25,588 Total noninterest expense 111,976 110,165 224,888 219,373 Income before income taxes 48,512 35,277 97,833 92,677 Income taxes 9,666 6,634 19,578 17,956 Net income $ 38,846 $ 28,643 $ 78,255 $ 74,721 Basic earnings per share $ 0.69 $ 0.51 $ 1.39 $ 1.33 Diluted earnings per share $ 0.69 $ 0.51 $ 1.38 $ 1.33 Cash dividends per common share $ 0.22 $ 0.22 $ 0.44 $ 0.44 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net income $ 38,846 $ 28,643 $ 78,255 $ 74,721 Other comprehensive income, net of tax: Securities available for sale: 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 Total securities available for sale 2,889 3,138 693 20,997 Derivative instruments: Unrealized holding losses on derivative instruments ( 141 ) ( 2,361 ) ( 711 ) ( 3,593 ) Total derivative instruments ( 141 ) ( 2,361 ) ( 711 ) ( 3,593 ) Defined benefit pension and post-retirement benefit plans: Amortization of net actuarial loss recognized in net periodic pension cost 79 86 158 172 Total defined benefit pension and post-retirement benefit plans 79 86 158 172 Other comprehensive income, net of tax 2,827 863 140 17,576 Comprehensive income $ 41,673 $ 29,506 $ 78,395 $ 92,297 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 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 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 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 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 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 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. 4 Table of Contents Renasant Corporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) (In Thousands) Six Months Ended June 30, 2024 2023 Operating activities Net income $ 78,255 $ 74,721 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Provision for credit losses 5,738 8,460 Depreciation, amortization and accretion 16,027 18,365 Deferred income tax expense 1,142 302 Proceeds from sale of MSR 23,011 — Gain on sale of MSR ( 3,472 ) — Funding of mortgage loans held for sale ( 641,131 ) ( 659,921 ) Proceeds from sales of mortgage loans held for sale 561,475 526,853 Gains on sales of mortgage loans held for sale ( 9,734 ) ( 9,417 ) Losses on sales of securities — 22,438 Debt prepayment benefit ( 56 ) — Losses on sales of premises and equipment 52 7 Stock-based compensation expense 7,366 6,840 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 ) Investing activities Purchases of securities available for sale ( 52,679 ) — Proceeds from sales of securities available for sale 177,185 488,981 Proceeds from call/maturities of securities available for sale 42,713 90,830 Proceeds from call/maturities of securities held to maturity 50,372 54,123 Net increase in loans ( 258,608 ) ( 363,231 ) Purchases of premises and equipment ( 6,774 ) ( 12,353 ) Proceeds from sales of premises and equipment 289 — Net change in FHLB stock 2,665 13,268 Proceeds from sales of other assets 1,167 827 Other, net 191 1,668 Net cash (used in) provided by investing activities ( 43,479 ) 274,113 Financing activities Net decrease in noninterest-bearing deposits ( 44,222 ) ( 679,803 ) Net increase in interest-bearing deposits 222,650 1,288,198 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 provided by financing activities 78,054 128,334 Net increase in cash and cash equivalents 50,555 370,907 Cash and cash equivalents at beginning of period 801,351 575,992 Cash and cash equivalents at end of period $ 851,906 $ 946,899 Supplemental disclosures Cash paid for interest $ 187,194 $ 91,861 Cash paid for income taxes $ 17,958 $ 23,071 Noncash transactions: Transfers of loans to other real estate owned $ 1,135 $ 4,119 Recognition of operating right-of-use assets $ 1,562 $ 611 Recognition of operating lease liabilities $ 1,562 $ 611 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. 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 : 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 (the “SEC”) 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 (“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 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 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 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 the Company’s 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 June 30, 2024 or December 31, 2023. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2024 Obligations of states and political subdivisions $ 20,355 $ 68 $ ( 2,273 ) $ 18,150 Residential mortgage backed securities: Government agency mortgage backed securities 193,895 102 ( 26,380 ) 167,617 Government agency collateralized mortgage obligations 420,707 — ( 89,746 ) 330,961 Commercial mortgage backed securities: Government agency mortgage backed securities 6,016 — ( 681 ) 5,335 Government agency collateralized mortgage obligations 139,885 4 ( 22,782 ) 117,107 Other debt securities 113,741 565 ( 3,791 ) 110,515 $ 894,599 $ 739 $ ( 145,653 ) $ 749,685 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 June 30, 2024 Obligations of states and political subdivisions $ 286,354 $ 21 $ ( 41,326 ) $ 245,049 Residential mortgage backed securities Government agency mortgage backed securities 399,822 — ( 27,382 ) 372,440 Government agency collateralized mortgage obligations 371,232 — ( 38,017 ) 333,215 Commercial mortgage backed securities: Government agency mortgage backed securities 16,972 — ( 3,058 ) 13,914 Government agency collateralized mortgage obligations 44,191 — ( 7,521 ) 36,670 Other debt securities 56,124 — ( 4,707 ) 51,417 $ 1,174,695 $ 21 $ ( 122,011 ) $ 1,052,705 Allowance for credit losses - held to maturity securities ( 32 ) Held to maturity securities, net of allowance for credit losses $ 1,174,663 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 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 second quarter of 2024. 8 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Carrying Value Immediately Prior to Sale Net Proceeds Impairment Recognized in December 2023 Six months ended June 30, 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 ) 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. 9 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Held to Maturity Available for Sale Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 1,322 $ 1,292 $ 1,001 $ 996 Due after one year through five years 6,319 5,853 36,378 36,558 Due after five years through ten years 126,189 110,897 38,250 34,491 Due after ten years 208,648 178,424 50,766 49,727 Residential mortgage backed securities: Government agency mortgage backed securities 399,822 372,440 193,895 167,617 Government agency collateralized mortgage obligations 371,232 333,215 420,707 330,961 Commercial mortgage backed securities: Government agency mortgage backed securities 16,972 13,914 6,016 5,335 Government agency collateralized mortgage obligations 44,191 36,670 139,885 117,107 Other debt securities — — 7,701 6,893 $ 1,174,695 $ 1,052,705 $ 894,599 $ 749,685 10 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: June 30, 2024 Obligations of states and political subdivisions — $ — $ — 7 $ 12,928 $ ( 2,273 ) 7 $ 12,928 $ ( 2,273 ) Residential mortgage backed securities: Government agency mortgage backed securities 5 9,495 ( 109 ) 36 154,193 ( 26,271 ) 41 163,688 ( 26,380 ) Government agency collateralized mortgage obligations — — — 37 330,955 ( 89,746 ) 37 330,955 ( 89,746 ) Commercial mortgage backed securities: Government agency mortgage backed securities — — — 2 5,335 ( 681 ) 2 5,335 ( 681 ) Government agency collateralized mortgage obligations 2 7,630 ( 131 ) 25 106,557 ( 22,651 ) 27 114,187 ( 22,782 ) Other debt securities — — — 20 37,415 ( 3,791 ) 20 37,415 ( 3,791 ) Total 7 $ 17,125 $ ( 240 ) 127 $ 647,383 $ ( 145,413 ) 134 $ 664,508 $ ( 145,653 ) 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 ) 11 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: June 30, 2024 Obligations of states and political subdivisions 1 $ 2,351 $ ( 33 ) 127 $ 241,015 $ ( 41,293 ) 128 $ 243,366 $ ( 41,326 ) Residential mortgage backed securities: Government agency mortgage backed securities — — — 70 372,441 ( 27,382 ) 70 372,441 ( 27,382 ) Government agency collateralized mortgage obligations — — — 18 333,214 ( 38,017 ) 18 333,214 ( 38,017 ) Commercial mortgage backed securities: Government agency mortgage backed securities — — — 1 13,914 ( 3,058 ) 1 13,914 ( 3,058 ) Government agency collateralized mortgage obligations — — — 9 36,670 ( 7,521 ) 9 36,670 ( 7,521 ) Other debt securities — — — 10 51,418 ( 4,707 ) 10 51,418 ( 4,707 ) Total 1 $ 2,351 $ ( 33 ) 235 $ 1,048,672 $ ( 121,978 ) 236 $ 1,051,023 $ ( 122,011 ) 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 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. 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 12 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 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 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 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 (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: June 30, 2024 December 31, 2023 Commercial, financial, agricultural $ 1,847,762 $ 1,871,821 Lease financing 108,178 122,807 Real estate – construction: Residential 275,966 269,616 Commercial 1,079,459 1,063,781 Total real estate – construction 1,355,425 1,333,397 Real estate – 1-4 family mortgage: Primary 2,415,150 2,422,482 Home equity 529,803 522,688 Rental/investment 388,305 373,755 Land development 102,560 120,994 Total real estate – 1-4 family mortgage 3,435,818 3,439,919 Real estate – commercial mortgage: Owner-occupied 1,724,601 1,648,961 Non-owner occupied 3,938,351 3,733,174 Land development 103,526 104,415 Total real estate – commercial mortgage 5,766,478 5,486,550 Installment loans to individuals 96,276 103,523 Gross loans 12,609,937 12,358,017 Unearned income ( 5,182 ) ( 6,787 ) Loans, net of unearned income $ 12,604,755 $ 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 13 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. 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 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 Lease financing 1,274 — 106,902 108,176 — — 2 2 108,178 Real estate – construction: Residential 4,151 — 271,815 275,966 — — — — 275,966 Commercial 4,518 — 1,074,941 1,079,459 — — — — 1,079,459 Total real estate – construction 8,669 — 1,346,756 1,355,425 — — — — 1,355,425 Real estate – 1-4 family mortgage: Primary 10,226 211 2,351,121 2,361,558 5,800 26,338 21,454 53,592 2,415,150 Home equity 2,751 — 523,819 526,570 1,508 868 857 3,233 529,803 Rental/investment 209 — 387,153 387,362 57 780 106 943 388,305 Land development 152 — 102,368 102,520 — 29 11 40 102,560 Total real estate – 1-4 family mortgage 13,338 211 3,364,461 3,378,010 7,365 28,015 22,428 57,808 3,435,818 Real estate – commercial mortgage: Owner-occupied 1,722 — 1,716,627 1,718,349 437 701 5,114 6,252 1,724,601 Non-owner occupied 733 — 3,913,194 3,913,927 356 153 23,915 24,424 3,938,351 Land development 547 — 99,769 100,316 103 17 3,090 3,210 103,526 Total real estate – commercial mortgage 3,002 — 5,729,590 5,732,592 896 871 32,119 33,886 5,766,478 Installment loans to individuals 976 7 95,038 96,021 51 111 93 255 96,276 Unearned income — — ( 5,182 ) ( 5,182 ) — — — — ( 5,182 ) Loans, net of unearned income $ 28,507 $ 240 $ 12,478,213 $ 12,506,960 $ 8,569 $ 30,293 $ 58,933 $ 97,795 $ 12,604,755 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 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. 15 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) 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: Primary — 33 246 — — — 279 0.01 Real estate – commercial mortgage: Owner-occupied 7,431 187 — — 270 — 7,888 0.46 Non-owner occupied — 2,506 89 — — — 2,595 0.07 Total real estate – commercial mortgage 7,431 2,693 89 — 270 — 10,483 0.18 Installment loans to individuals — — 14 1 — — 15 0.02 Loans, net of unearned income $ 9,172 $ 2,891 $ 349 $ 518 $ 270 $ 138 $ 13,338 0.11 % 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: Land development — 97 277 374 0.33 Loans, net of unearned income $ 9 $ 5,673 $ 277 $ 5,959 0.05 % 16 Table of Contents 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: Home equity 9 — — 9 — Real estate – commercial mortgage: Owner-occupied 155 — — 155 0.01 Non-owner occupied 1,026 — — 1,026 0.03 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 17 Table of Contents 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 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 18 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) 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 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 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. 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 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 Pass 109,925 269,269 242,743 147,816 85,070 72,226 830,193 3,087 1,760,329 Special Mention 397 2,010 211 235 151 463 16,925 — 20,392 Substandard 7,516 478 14,824 324 576 4,391 17,437 1,253 46,799 Lease Financing Receivables $ 8,550 $ 29,675 $ 44,676 $ 10,615 $ 4,617 $ 4,842 $ — $ — $ 102,975 Pass 8,550 27,643 39,907 10,373 3,136 4,556 — — 94,165 Special Mention — 1,377 3,744 242 1,481 286 — — 7,130 Substandard — 655 1,025 — — — — — 1,680 Real Estate - Construction $ 187,007 $ 261,141 $ 614,046 $ 186,394 $ — $ 359 $ 19,770 $ — $ 1,268,717 Residential 110,625 69,701 7,041 — — 359 1,532 — 189,258 Pass 110,460 65,742 5,742 — — 359 1,532 — 183,835 Special Mention 165 2,754 — — — — — — 2,919 Substandard — 1,205 1,299 — — — — — 2,504 Commercial 76,382 191,440 607,005 186,394 — — 18,238 — 1,079,459 Pass 76,382 179,132 581,982 186,394 — — 18,238 — 1,042,128 Special Mention — 12,308 25,023 — — — — — 37,331 Substandard — — — — — — — — — Real Estate - 1-4 Family Mortgage $ 75,861 $ 126,561 $ 150,861 $ 81,526 $ 38,046 $ 38,446 $ 34,783 $ 1,515 $ 547,599 19 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 Primary 3,001 6,692 7,952 5,733 3,149 7,600 1,334 856 36,317 Pass 3,001 6,503 7,766 5,232 3,149 6,811 1,334 856 34,652 Special Mention — — — — — 26 — — 26 Substandard — 189 186 501 — 763 — — 1,639 Home Equity — 1,011 10 967 — 47 28,599 — 30,634 Pass — 1,011 10 967 — — 28,406 — 30,394 Special Mention — — — — — — 193 — 193 Substandard — — — — — 47 — — 47 Rental/Investment 45,826 88,334 120,435 67,238 34,546 28,097 2,851 659 387,986 Pass 45,740 87,777 120,284 66,854 33,864 27,330 2,851 388 385,088 Special Mention — 60 47 — 31 — — — 138 Substandard 86 497 104 384 651 767 — 271 2,760 Land Development 27,034 30,524 22,464 7,588 351 2,702 1,999 — 92,662 Pass 27,034 30,524 21,790 7,588 351 2,702 1,999 — 91,988 Special Mention — — 674 — — — — — 674 Substandard — — — — — — — — — Real Estate - Commercial Mortgage $ 463,713 $ 717,550 $ 1,625,884 $ 1,104,896 $ 667,052 $ 980,087 $ 152,436 $ 43,342 $ 5,754,960 Owner-Occupied 153,401 260,077 351,019 303,140 205,489 385,046 63,222 3,080 1,724,474 Pass 153,371 252,407 338,915 301,575 203,621 377,264 63,222 2,816 1,693,191 Special Mention — 4,477 6,519 871 137 3,183 — — 15,187 Substandard 30 3,193 5,585 694 1,731 4,599 — 264 16,096 Non-Owner Occupied 288,445 442,967 1,246,797 790,682 458,148 586,970 84,237 40,082 3,938,328 Pass 283,338 438,999 1,240,424 770,844 454,225 521,278 84,237 31,919 3,825,264 Special Mention 4,990 1,336 6,200 19,151 1,149 21,043 — — 53,869 Substandard 117 2,632 173 687 2,774 44,649 — 8,163 59,195 Land Development 21,867 14,506 28,068 11,074 3,415 8,071 4,977 180 92,158 Pass 21,867 14,183 24,461 10,857 3,278 7,856 4,955 180 87,637 Special Mention — 300 150 34 — — — — 484 Substandard — 23 3,457 183 137 215 22 — 4,037 Installment loans to individuals $ 4 $ — $ — $ — $ — $ — $ — $ — $ 4 Pass 4 — — — — — — — 4 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total loans subject to risk rating $ 852,973 $ 1,406,684 $ 2,693,245 $ 1,531,806 $ 795,512 $ 1,100,814 $ 1,071,544 $ 49,197 $ 9,501,775 Pass 839,672 1,373,190 2,624,024 1,508,500 786,694 1,020,382 1,036,967 39,246 9,228,675 Special Mention 5,552 24,622 42,568 20,533 2,949 25,001 17,118 — 138,343 Substandard 7,749 8,872 26,653 2,773 5,869 55,431 17,459 9,951 134,757 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 20 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 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 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 — — — — — — — — — 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 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: 22 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 June 30, 2024 Commercial, Financial, Agricultural $ — $ — $ — $ — $ — $ 20,242 $ — $ — $ 20,242 Performing Loans — — — — — 20,242 — — 20,242 Non-Performing Loans — — — — — — — — — Lease Financing Receivables $ — $ — $ — $ — $ — $ 21 $ — $ — $ 21 Performing Loans — — — — — 21 — — 21 Non-Performing Loans — — — — — — — — — Real Estate - Construction $ 10,380 $ 47,740 $ 20,128 $ 7,543 $ — $ — $ 911 $ 6 $ 86,708 Residential 10,380 47,740 20,128 7,543 — — 911 6 86,708 Performing Loans 10,380 47,740 20,128 7,543 — — 911 6 86,708 Non-Performing Loans — — — — — — — — — Commercial — — — — — — — — — Performing Loans — — — — — — — — — Non-Performing Loans — — — — — — — — — Real Estate - 1-4 Family Mortgage $ 71,586 $ 335,732 $ 730,309 $ 513,980 $ 298,266 $ 439,675 $ 487,564 $ 11,107 $ 2,888,219 Primary 70,395 332,308 727,631 511,985 297,509 438,964 4 37 2,378,833 Performing Loans 70,395 330,649 715,186 504,788 287,282 417,312 4 37 2,325,653 Non-Performing Loans — 1,659 12,445 7,197 10,227 21,652 — — 53,180 Home Equity — — 1 111 — 427 487,560 11,070 499,169 Performing Loans — — 1 111 — 421 487,407 7,995 495,935 Non-Performing Loans — — — — — 6 153 3,075 3,234 Rental/Investment — — — 259 — 60 — — 319 Performing Loans — — — 259 — 60 — — 319 Non-Performing Loans — — — — — — — — — Land Development 1,191 3,424 2,677 1,625 757 224 — — 9,898 Performing Loans 1,191 3,395 2,677 1,614 757 224 — — 9,858 Non-Performing Loans — 29 — 11 — — — — 40 Real Estate - Commercial Mortgage $ 863 $ 3,355 $ 2,071 $ 2,777 $ 1,706 $ 746 $ — $ — $ 11,518 Owner-Occupied — — — — 124 3 — — 127 Performing Loans — — — — 124 3 — — 127 Non-Performing Loans — — — — — — — — — Non-Owner Occupied — — — — 23 — — — 23 Performing Loans — — — — 23 — — — 23 Non-Performing Loans — — — — — — — — — Land Development 863 3,355 2,071 2,777 1,559 743 — — 11,368 Performing Loans 863 3,355 1,953 2,777 1,557 743 — — 11,248 Non-Performing Loans — — 118 — 2 — — — 120 Installment loans to individuals $ 22,058 $ 19,011 $ 11,432 $ 5,256 $ 1,972 $ 21,315 $ 15,109 $ 119 $ 96,272 Performing Loans 22,042 18,944 11,421 5,220 1,966 21,222 15,079 114 96,008 Non-Performing Loans 16 67 11 36 6 93 30 5 264 Total loans not subject to risk rating $ 104,887 $ 405,838 $ 763,940 $ 529,556 $ 301,944 $ 481,999 $ 503,584 $ 11,232 $ 3,102,980 Performing Loans 104,871 404,083 751,366 522,312 291,709 460,248 503,401 8,152 3,046,142 Non-Performing Loans 16 1,755 12,574 7,244 10,235 21,751 183 3,080 56,838 23 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 24 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) 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 Real estate – 1-4 family mortgage: Primary — — 116 27 — 55 — 198 Home equity — — — — — 47 — 47 Rental/investment — — — — — 45 — 45 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 Loans, net of unearned income $ — $ 30 $ 284 $ 27 $ — $ 6,730 $ 211 $ 7,282 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 25 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 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 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. 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 June 30, 2024 and December 31, 2023. 26 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 June 30, 2024 Allowance for credit losses: Beginning balance $ 45,921 $ 17,317 $ 47,566 $ 78,725 $ 2,554 $ 8,969 $ 201,052 Charge-offs ( 186 ) — ( 208 ) ( 5,727 ) — ( 251 ) ( 6,372 ) Recoveries 525 — 25 99 10 232 891 Net (charge-offs) recoveries 339 — ( 183 ) ( 5,628 ) 10 ( 19 ) ( 5,481 ) Provision for (recovery of) credit losses on loans ( 1,309 ) 1,579 38 4,028 ( 49 ) 13 4,300 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: Individually evaluated $ 8,514 $ — $ — $ 1,220 $ — $ 270 $ 10,004 Collectively evaluated 36,437 18,896 47,421 75,905 2,515 8,693 189,867 Ending balance $ 44,951 $ 18,896 $ 47,421 $ 77,125 $ 2,515 $ 8,963 $ 199,871 Loans: Individually evaluated $ 14,211 $ — $ 6,942 $ 32,579 $ — $ 270 $ 54,002 Collectively evaluated 1,833,551 1,355,425 3,428,876 5,733,899 102,996 96,006 12,550,753 Ending balance $ 1,847,762 $ 1,355,425 $ 3,435,818 $ 5,766,478 $ 102,996 $ 96,276 $ 12,604,755 Nonaccruing loans with no allowance for credit losses $ 230 $ — $ 6,318 $ 20,640 $ — $ — $ 27,188 27 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 June 30, 2023 Allowance for credit losses: Beginning balance $ 44,678 $ 19,959 $ 45,981 $ 72,770 $ 2,437 $ 9,467 $ 195,292 Charge-offs ( 4,939 ) ( 57 ) ( 212 ) ( 397 ) — ( 580 ) ( 6,185 ) Recoveries 1,274 — 170 278 6 556 2,284 Net (charge-offs) recoveries ( 3,665 ) ( 57 ) ( 42 ) ( 119 ) 6 ( 24 ) ( 3,901 ) Provision for (recovery of) credit losses on loans 297 ( 777 ) 495 3,016 37 ( 68 ) 3,000 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: Individually evaluated $ 10,773 $ — $ 703 $ 1,269 $ — $ 270 $ 13,015 Collectively evaluated 30,537 19,125 45,731 74,398 2,480 9,105 181,376 Ending balance $ 41,310 $ 19,125 $ 46,434 $ 75,667 $ 2,480 $ 9,375 $ 194,391 Loans: Individually evaluated $ 21,418 $ — $ 13,545 $ 40,239 $ — $ 270 $ 75,472 Collectively evaluated 1,707,652 1,369,019 3,335,109 5,212,240 122,370 108,654 11,855,044 Ending balance $ 1,729,070 $ 1,369,019 $ 3,348,654 $ 5,252,479 $ 122,370 $ 108,924 $ 11,930,516 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 $ 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 $ 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 28 Table of Contents 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 June 30, 2024 2023 Allowance for credit losses on unfunded loan commitments: Beginning balance $ 16,718 $ 18,618 Recovery of credit losses on unfunded loan commitments ( 1,000 ) ( 1,000 ) 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 (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: June 30, 2024 December 31, 2023 Residential real estate $ 1,004 $ 1,211 Commercial real estate 6,336 8,407 Residential land development 19 4 Commercial land development 7 — Total $ 7,366 $ 9,622 Changes in the Company’s OREO were as follows: Total OREO Balance at January 1, 2024 $ 9,622 Transfers of loans 1,135 Impairments ( 67 ) Dispositions ( 1,052 ) Other ( 2,272 ) 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: 29 Table of Contents 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 Property taxes and insurance 23 11 52 122 Impairments 39 8 67 8 Net (gains) losses on OREO sales ( 102 ) 6 ( 115 ) ( 89 ) Rental income ( 2 ) ( 2 ) ( 3 ) ( 4 ) Total $ 105 $ 51 $ 212 $ 81 Note 6 – Goodwill and Other Intangible Assets (In Thousands) 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 Balance at January 1, 2024 $ 988,898 $ 2,767 $ 991,665 Additions to goodwill and other adjustments — — — 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: Gross Carrying Amount Accumulated Amortization Net Carrying Amount June 30, 2024 Core deposit intangibles $ 82,492 $ ( 70,185 ) $ 12,307 Customer relationship intangible 7,670 ( 3,580 ) 4,090 Total finite-lived intangible assets $ 90,162 $ ( 73,765 ) $ 16,397 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Amortization expense for: Core deposit intangibles $ 888 $ 1,034 $ 1,802 $ 2,126 Customer relationship intangible 298 335 596 669 Total intangible amortization $ 1,186 $ 1,369 $ 2,398 $ 2,795 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: 30 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) 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. 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 . Changes in the Company’s MSRs were as follows: Balance at January 1, 2024 $ 91,688 Sale of MSRs ( 19,539 ) Capitalization 4,669 Amortization ( 4,726 ) 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: 31 Table of Contents 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 Weighted-average prepayment speed (CPR) 8.87 % 8.77 % Estimated impact of a 10% increase $ ( 3,066 ) $ ( 2,653 ) Estimated impact of a 20% increase ( 5,941 ) ( 5,457 ) Discount rate 11.09 % 10.85 % Estimated impact of a 10% increase $ ( 3,924 ) $ ( 4,753 ) Estimated impact of a 20% increase ( 7,557 ) ( 9,149 ) Weighted-average coupon interest rate 4.13 % 3.88 % Weighted-average servicing fee (basis points) 36.06 33.24 Weighted-average remaining maturity (in years) 7.50 7.50 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 (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: Pension Benefits Other Benefits Three Months Ended Three Months Ended June 30, June 30, 2024 2023 2024 2023 Interest cost $ 227 $ 248 $ 6 $ 5 Expected return on plan assets ( 248 ) ( 309 ) — — Recognized actuarial loss (gain) 129 131 ( 24 ) ( 16 ) 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 ) 32 Table of Contents 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 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 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 Nonvested at beginning of period 169,575 $ 36.38 779,564 $ 36.20 Awarded 95,048 33.44 347,918 32.86 Vested — — ( 283,143 ) 35.86 Cancelled — — ( 27,751 ) 33.91 Nonvested at end of period 264,623 $ 35.32 816,588 $ 34.98 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 (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: 33 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Balance Sheet June 30, 2024 December 31, 2023 Location Notional Amount Fair Value Notional Amount Fair Value Derivative assets: Interest rate contracts Other Assets $ 642,619 $ 13,944 $ 532,279 $ 13,567 Interest rate lock commitments Other Assets 138,881 1,882 61,957 1,483 Forward commitments Other Assets 136,000 486 20,000 43 Totals $ 917,500 $ 16,312 $ 614,236 $ 15,093 Derivative liabilities: Interest rate contracts Other Liabilities $ 646,002 $ 14,016 $ 535,725 $ 13,567 Interest rate lock commitments Other Liabilities 12,285 41 2,292 — Forward commitments Other Liabilities 164,000 697 165,000 2,605 Totals $ 822,287 $ 14,754 $ 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest rate contracts: Included in interest income on loans $ 3,239 $ 1,804 $ 6,430 $ 3,546 Interest rate lock commitments: Included in mortgage banking income ( 420 ) ( 1,686 ) 388 551 Forward commitments Included in mortgage banking income 284 1,041 2,351 2,424 Total $ 3,103 $ 1,159 $ 9,169 $ 6,521 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 June 30, 2024 December 31, 2023 Location Notional Amount Fair Value Notional Amount Fair Value Derivative assets: Interest rate swaps Other Assets $ 130,000 $ 23,626 $ 130,000 $ 21,486 Interest rate collars Other Assets — — 200,000 572 Total $ 130,000 $ 23,626 $ 330,000 $ 22,058 Derivative liabilities: Interest rate collars Other Liabilities $ 450,000 $ 2,905 $ 250,000 $ 384 Totals $ 450,000 $ 2,905 $ 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 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.” 34 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 June 30, 2024 December 31, 2023 Location Notional Amount Fair Value Notional Amount Fair Value Derivative liabilities: Interest rate swaps Other Liabilities $ 100,000 $ 18,391 $ 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 June 30, Six Months Ended June 30, Location 2024 2023 2024 2023 Derivative liabilities: Interest rate swaps - subordinated notes Interest Expense $ 173 $ ( 1,939 ) $ ( 1,338 ) $ 582 Derivative liabilities - hedged items: Interest rate swaps - subordinated notes Interest Expense $ ( 173 ) $ 1,939 $ 1,338 $ ( 582 ) 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 June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Long-term debt $ 80,540 $ 81,791 $ 18,390 $ 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: 35 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Offsetting Derivative Assets Offsetting Derivative Liabilities June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Gross amounts recognized $ 35,654 $ 29,284 $ 33,598 $ 26,425 Gross amounts offset in the Consolidated Balance Sheets — — — — Net amounts presented in the Consolidated Balance Sheets 35,654 29,284 33,598 26,425 Gross amounts not offset in the Consolidated Balance Sheets Financial instruments 30,418 23,863 30,418 23,863 Financial collateral pledged — — 236 1,074 Net amounts $ 5,236 $ 5,421 $ 2,944 $ 1,488 Note 10 – 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. 36 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) 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: Level 1 Level 2 Level 3 Totals June 30, 2024 Financial assets: Securities available for sale $ — $ 749,685 $ — $ 749,685 Derivative instruments — 39,938 — 39,938 Mortgage loans held for sale in loans held for sale — 266,406 — 266,406 Total financial assets $ — $ 1,056,029 $ — $ 1,056,029 Financial liabilities: Derivative instruments: $ — $ 36,050 $ — $ 36,050 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 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 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: June 30, 2024 Level 1 Level 2 Level 3 Totals Individually evaluated loans, net of allowance for credit losses $ — $ — $ 20,826 $ 20,826 OREO — — 61 61 Total $ — $ — $ 20,887 $ 20,887 37 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) December 31, 2023 Level 1 Level 2 Level 3 Totals Individually evaluated loans, net of allowance for credit losses $ — $ — $ 21,303 $ 21,303 Total $ — $ — $ 21,303 $ 21,303 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 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 $ 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 : 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 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. June 30, 2024 Carrying amount prior to remeasurement $ 99 Impairment recognized in results of operations ( 38 ) Fair value $ 61 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 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 Value Valuation Technique Significant Unobservable Inputs Range of Inputs Individually evaluated loans, net of allowance for credit losses $ 20,826 Appraised value of collateral less estimated costs to sell Estimated costs to sell 4 - 10 % OREO $ 61 Appraised value of property less estimated costs to sell Estimated costs to sell 4 - 10 % 38 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) 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 $ 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. 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. 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 June 30, 2024 and December 31, 2023: Aggregate Fair Value Aggregate Unpaid Principal Balance Difference June 30, 2024 Mortgage loans held for sale measured at fair value $ 266,406 $ 261,395 $ 5,011 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 June 30, 2024 Carrying Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 851,906 $ 851,906 $ — $ — $ 851,906 Securities held to maturity 1,174,663 — 1,052,705 — 1,052,705 Securities available for sale 749,685 — 749,685 — 749,685 Loans held for sale 266,406 — 266,406 — 266,406 Loans, net 12,404,884 — — 11,932,069 11,932,069 Mortgage servicing rights 72,092 — — 97,781 97,781 Derivative instruments 39,938 — 39,938 — 39,938 Financial liabilities Deposits $ 14,255,213 $ 11,556,358 $ 2,682,808 $ — $ 14,239,166 Short-term borrowings 232,741 232,741 — — 232,741 Junior subordinated debentures 113,447 — 97,655 — 97,655 Subordinated notes 315,230 — 271,793 — 271,793 Derivative instruments 36,050 — 36,050 — 36,050 39 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 40 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 11 – Other Comprehensive Income (In Thousands) 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 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 Total securities available for sale 4,181 1,043 3,138 Derivative instruments: Unrealized holding losses on derivative instruments ( 3,167 ) ( 806 ) ( 2,361 ) Total derivative instruments ( 3,167 ) ( 806 ) ( 2,361 ) Defined benefit pension and post-retirement benefit plans: Amortization of net actuarial loss recognized in net periodic pension cost 115 29 86 Total defined benefit pension and post-retirement benefit plans 115 29 86 Total other comprehensive income $ 1,129 $ 266 $ 863 41 Table of Contents 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 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 Total securities available for sale 983 290 693 Derivative instruments: Unrealized holding losses on derivative instruments ( 953 ) ( 242 ) ( 711 ) Total derivative instruments ( 953 ) ( 242 ) ( 711 ) Defined benefit pension and post-retirement benefit plans: Amortization of net actuarial loss recognized in net periodic pension cost 211 53 158 Total defined benefit pension and post-retirement benefit plans 211 53 158 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: June 30, 2024 December 31, 2023 Unrealized losses on securities $ ( 162,791 ) $ ( 163,484 ) Unrealized gains on derivative instruments 16,340 17,051 Unrecognized losses on defined benefit pension and post-retirement benefit plans obligations ( 7,665 ) ( 7,823 ) Total accumulated other comprehensive loss $ ( 154,116 ) $ ( 154,256 ) 42 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 12 – 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 June 30, 2024 2023 Basic Net income applicable to common stock $ 38,846 $ 28,643 Average common shares outstanding 56,342,909 56,107,881 Net income per common share - basic $ 0.69 $ 0.51 Diluted Net income applicable to common stock $ 38,846 $ 28,643 Average common shares outstanding 56,342,909 56,107,881 Effect of dilutive stock-based compensation 341,717 287,772 Average common shares outstanding - diluted 56,684,626 56,395,653 Net income per common share - diluted $ 0.69 $ 0.51 Six Months Ended June 30, 2024 2023 Basic 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 Diluted 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: Three Months Ended June 30, 2024 2023 Number of shares 1,000 179,226 Six Months Ended June 30, 2024 2023 Number of shares 5,449 182,226 43 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Note 13 – 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: 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: June 30, 2024 December 31, 2023 Amount Ratio Amount Ratio Renasant Corporation Tier 1 Capital to Average Assets (Leverage) $ 1,621,168 9.81 % $ 1,578,918 9.62 % Common Equity Tier 1 Capital to Risk-Weighted Assets 1,511,312 10.75 % 1,469,531 10.52 % Tier 1 Capital to Risk-Weighted Assets 1,621,168 11.53 % 1,578,918 11.30 % Total Capital to Risk-Weighted Assets 2,130,901 15.15 % 2,085,531 14.93 % Renasant Bank Tier 1 Capital to Average Assets (Leverage) $ 1,752,876 10.61 % $ 1,714,965 10.45 % Common Equity Tier 1 Capital to Risk-Weighted Assets 1,752,876 12.44 % 1,714,965 12.25 % Tier 1 Capital to Risk-Weighted Assets 1,752,876 12.44 % 1,714,965 12.25 % Total Capital to Risk-Weighted Assets 1,929,307 13.69 % 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 14 – 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. 44 Table of Contents 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. 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. 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 June 30, 2024 Net interest income (loss) $ 131,424 $ 461 $ 16 $ ( 6,875 ) $ 125,026 Provision for credit losses 3,300 — — — 3,300 Noninterest income (loss) 29,729 2,877 6,568 ( 412 ) 38,762 Noninterest expense 104,617 2,245 4,751 363 111,976 Income (loss) before income taxes 53,236 1,093 1,833 ( 7,650 ) 48,512 Income tax expense (benefit) 11,276 284 80 ( 1,974 ) 9,666 Net income (loss) $ 41,960 $ 809 $ 1,753 $ ( 5,676 ) $ 38,846 Total assets $ 17,462,835 $ 41,988 $ 5,043 $ 525 $ 17,510,391 Goodwill $ 988,898 $ 2,767 — — $ 991,665 Three months ended June 30, 2023 Net interest income (loss) $ 136,381 $ 428 $ 17 $ ( 6,610 ) $ 130,216 Provision for credit losses 2,000 — — — 2,000 Noninterest income (loss) 8,747 2,859 6,050 ( 430 ) 17,226 Noninterest expense 103,282 2,070 4,407 406 110,165 Income (loss) before income taxes 39,846 1,217 1,660 ( 7,446 ) 35,277 Income tax expense (benefit) 8,258 316 ( 18 ) ( 1,922 ) 6,634 Net income (loss) $ 31,588 $ 901 $ 1,678 $ ( 5,524 ) $ 28,643 Total assets $ 17,181,988 $ 37,867 $ 4,757 $ ( 270 ) $ 17,224,342 Goodwill $ 988,898 $ 2,767 — — $ 991,665 45 Table of Contents Renasant Corporation and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) Community 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 46 Table of Contents 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. 47 Table of Contents