9 unchanged sentences
Important factors currently known to management that could cause our actual results to differ materially from those in forward-looking statements include the following:
−Removed: (i) the Company’s ability to efficiently integrate acquisitions (including its recently-announced acquisition of The First Bancshares, Inc.
+Added: (i) the Company’s ability to efficiently integrate acquisitions (including its recently-completed merger with The First Bancshares, Inc.
described under the “Recent Developments” heading below) into its operations, retain the customers of these businesses, grow the acquired operations and realize the cost savings expected from an acquisition to the extent and in the timeframe anticipated by management (including the possibility that such cost savings will not be realized when expected, or at all, as a result of the impact of, or challenges arising from, the integration of the acquired assets and assumed liabilities into the Company, potential adverse reactions or changes to business or employee relationships, or as a result of other unexpected factors or events);
−Removed: (ii) potential exposure to unknown or contingent risks and liabilities we have acquired, or may acquire, or target for acquisition, including in connection with the proposed merger with The First Bancshares, Inc.;
+Added: (ii) potential exposure to unknown or contingent risks and liabilities we have acquired, or may acquire, or target for acquisition, including in connection with the merger with The First Bancshares, Inc.;
(iii) the effect of economic conditions and interest rates on a national, regional or international basis;
3 unchanged sentences
(vii) changes in laws and regulations as well as changes in accounting standards;
−Removed: (viii) changes in policy by regulatory agencies or increased scrutiny by, and/or additional regulatory requirements of, regulatory agencies as a result of our proposed merger with The First Bancshares, Inc.;
−Removed: (ix) changes in the securities and foreign exchange markets;
−Removed: (x) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth;
−Removed: (xi) changes in the quality or composition of the Company’s loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of our investment securities portfolio;
−Removed: (xii) an insufficient allowance for credit losses as a result of inaccurate assumptions;
−Removed: (xiii) changes in the sources and costs of the capital we use to make loans and otherwise fund our operations, due to deposit outflows, changes in the mix of deposits and the cost and availability of borrowings;
−Removed: (xiv) general economic, market or business conditions, including the impact of inflation;
−Removed: (xv) changes in demand for loan and deposit products and other financial services;
−Removed: (xvi) concentrations of credit or deposit exposure;
−Removed: (xvii) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships;
−Removed: (xviii) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses;
−Removed: (xix) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area;
−Removed: (xx) geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad;
−Removed: (xxi) the impact, extent and timing of technological changes;
−Removed: and (xxii) other circumstances, many of which are beyond management’s control.
+Added: (viii) changes in governmental and regulatory policy, whether applicable specifically to financial institutions or impacting the United States generally (such as, for example, changes in trade policy);
+Added: (ix) increased scrutiny by, and/or additional regulatory requirements of, regulatory agencies as a result of the Company’s merger with The First;
+Added: (x) changes in the securities and foreign exchange markets;
+Added: (xi) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth;
+Added: (xii) changes in the quality or composition of the Company’s loan or investment securities portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of our investment securities portfolio;
+Added: (xiii) an insufficient allowance for credit losses as a result of inaccurate assumptions;
+Added: (xiv) changes in the sources and costs of the capital we use to make loans and otherwise fund our operations, due to deposit outflows, changes in the mix of deposits and the cost and availability of borrowings;
+Added: (xv) general economic, market or business conditions, including the impact of inflation;
+Added: (xvi) changes in demand for loan and deposit products and other financial services;
+Added: (xvii) concentrations of credit or deposit exposure;
+Added: (xviii) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships;
+Added: (xix) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses;
+Added: (xx) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area;
+Added: (xxi) geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad;
+Added: (xxii) the impact, extent and timing of technological changes;
+Added: and (xxiii) other circumstances, many of which are beyond management’s control.
Management believes that the assumptions underlying the Company’s forward-looking statements are reasonable, but any of the assumptions could prove to be inaccurate.
1 unchanged sentence
Recent Developments
−Removed: Sale of Renasant Insurance, Inc.
−Removed: Effective July 1, 2024, Renasant Bank sold substantially all of the assets of Renasant Insurance, Inc.
−Removed: for gross cash proceeds to Renasant Bank of $56,390.
−Removed: The sale resulted in a positive after-tax impact to earnings of $34,092, which is net of estimated transaction-related expenses.
−Removed: The financial effects of the sale are reflected in the third quarter of 2024.
−Removed: Proposed Merger with The First Bancshares, Inc.
−Removed: 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”).
−Removed: 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.
−Removed: 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.
−Removed: The shareholders of the Company and The First approved the Merger at special meetings held on October 22, 2024.
−Removed: 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.
−Removed: Offering of Common Stock
−Removed: 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.
−Removed: The aggregate gross proceeds were $230,000.
−Removed: The net proceeds of the offering after deducting underwriting discounts and other estimated offering expenses were approximately $217,000.
−Removed: 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.
+Added: Merger with The First Bancshares, Inc.
+Added: On April 1, 2025, the Company completed its merger with The First Bancshares, Inc., a Mississippi corporation (“The First”), pursuant to the agreement and plan of merger between the Company and The First dated July 29, 2024 (the “Merger Agreement”).
+Added: As provided in the Merger Agreement, subject to the terms and conditions set forth therein, on April 1, 2025, among other things, The First merged with and into the Company, with the Company as the surviving entity (the “Merger”).
+Added: The First’s subsidiary bank and Renasant Bank entered into a subsidiary plan of merger, pursuant to which The First’s subsidiary bank merged with and into Renasant Bank immediately after the Merger, with Renasant Bank as the surviving entity.
+Added: 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 converted into the right to receive one share of common stock of the Company.
+Added: The merger with The First will be accounted for as a business combination.
+Added: The Company is currently in the process of completing the purchase accounting and has not made all of the remaining required disclosures, such as the fair value of assets acquired and supplemental pro forma information, which will be disclosed in subsequent filings.
Financial Condition
−Removed: The following discussion provides details regarding the changes in significant balance sheet accounts at September 30, 2024 compared to December 31, 2023.
−Removed: Total assets were $17,958,840 at September 30, 2024 compared to $17,360,535 at December 31, 2023.
+Added: The following discussion provides details regarding the changes in significant balance sheet accounts at March 31, 2025 compared to December 31, 2024.
+Added: Total assets were $18,271,381 at March 31, 2025 compared to $18,034,868 at December 31, 2024.
The securities portfolio is used to provide a source for meeting liquidity needs and to supply securities to be used in collateralizing certain deposits and certain types of borrowings.
1 unchanged sentence
The following table shows the carrying value of our securities portfolio by investment type and the percentage of such investment type relative to the entire securities portfolio as of the dates presented:
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Balance Percentage of
8 unchanged sentences
Securities, net of allowance for credit losses $ 2,103,957 $ 1,957,125
−Removed: The Company purchased $60,656 and $9,646 in investment securities during the nine months ended September 30, 2024 and 2023, respectively.
−Removed: Proceeds from maturities, calls and principal payments on securities during the first nine months of 2024 totaled $142,480.
+Added: The Company purchased $175,815 and $46,975 in investment securities during the three months ended March 31, 2025 and 2024, respectively.
+Added: Proceeds from maturities, calls and principal payments on securities during the first three months of 2025 totaled $56,789.
+Added: No securities were sold during the first quarter of 2025.
+Added: Proceeds from the maturities, calls and principal payments on securities during the first three months of 2024 totaled $46,307.
During the first quarter of 2024, the Company sold from the available for sale portfolio municipal securities, residential mortgage backed securities and commercial mortgage backed securities for net proceeds of $177,185.
2 unchanged sentences
The carrying value of the securities immediately prior to the impairment was $196,537, and the impairment charge was $19,352.
−Removed: No loss was recorded in the first nine months of 2024.
−Removed: Proceeds from the maturities, calls and principal payments on securities during the first nine months of 2023 totaled $208,095.
−Removed: The Company sold from the available for sale portfolio agency securities, municipal securities, residential mortgage backed securities and commercial mortgage backed securities with a carrying value of $511,419 at the time of sale for net proceeds of $488,981, resulting in a net loss on sale of $22,438 during the nine months ended September 30, 2023.
−Removed: The Company did not sell any securities during the third quarter of 2024 or 2023.
+Added: No loss was recorded in the first three months of 2024.
During the third quarter of 2022, the Company transferred, at fair value, $882,927 of securities from the available for sale portfolio to the held to maturity portfolio as the Company has the intent and ability to hold these securities until their maturity.
The related net unrealized losses of $99,675 (after tax losses of $74,307) remained in accumulated other comprehensive income (loss) and will be amortized over the remaining life of the securities, offsetting the related amortization of discount on the transferred securities.
−Removed: At September 30, 2024, the net unrealized after tax losses remaining to be amortized in accumulated other comprehensive income (loss) was $51,332.
+Added: At March 31, 2025, the net unrealized after tax losses remaining to be amortized in accumulated other comprehensive income (loss) was $46,781.
No gains or losses were recognized at the time of transfer.
1 unchanged sentence
Loans Held for Sale
−Removed: Loans held for sale, which consist of residential mortgage loans being held until they are sold in the secondary market, were $291,735 at September 30, 2024, as compared to $179,756 at December 31, 2023.
+Added: Loans held for sale, which consist of residential mortgage loans being held until they are sold in the secondary market, were $226,003 at March 31, 2025, as compared to $246,171 at December 31, 2024.
Mortgage loans to be sold are sold either on a “best efforts” basis or under a mandatory delivery sales agreement.
6 unchanged sentences
Although loan fees and some interest income are derived from mortgage loans held for sale, the main source of income is gains from the sale of these loans in the secondary market.
−Removed: Total loans, excluding loans held for sale, were $12,627,648 at September 30, 2024 and $12,351,230 at December 31, 2023.
−Removed: The tables below set forth the balance of loans outstanding, net of unearned income and excluding loans held for sale, by loan type and the percentage of each loan type to total loans as of the dates presented:
−Removed: September 30, 2024 December 31, 2023
+Added: Total loans, excluding loans held for sale, were $13,055,593 at March 31, 2025 and $12,885,020 at December 31, 2024.
+Added: The table below sets forth the balance of loans outstanding, net of unearned income and excluding loans held for sale, by loan type and the percentage of each loan type to total loans as of the dates presented:
+Added: March 31, 2025 December 31, 2024
Loans Percentage of Total Loans Total
20 unchanged sentences
Loan concentrations are considered to exist when there are amounts loaned to a number of borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions.
−Removed: At September 30, 2024, there were no concentrations of loans exceeding 10% of total loans which are not disclosed as a category of loans separate from the categories listed above.
+Added: At March 31, 2025, there were no concentrations of loans exceeding 10% of total loans other than loans disclosed in the table above.
+Added: Non-owner occupied commercial mortgage term loans was the largest concentration and compromised 32.65% of total loans at March 31, 2025.
+Added: The following table presents the loan segments, determined by collateral type, within the non-owner occupied commercial mortgage loan category as of March 31, 2025.
+Added: March 31, 2025
+Added: Balance Average Loan Size Percentage of Total Loans Weighted-Average Loan-to-Value Percentage 30-89 Days Past Due Percentage
+Added: Non-performing
+Added: Hotels $ 402,251 $ 5,293 3.08 % 57 % — % — %
+Added: Self Storage 462,140 3,301 3.54 % 55 % 0.05 % — %
+Added: Multi-Family 1,050,961 3,727 8.05 % 53 % — % — %
+Added: Office - Medical 312,706 2,044 2.40 % 46 % — % — %
+Added: Office - Non-Medical 312,312 941 2.39 % 56 % — % 5.67 %
+Added: Retail 672,686 1,144 5.15 % 55 % — % 0.34 %
+Added: Senior Housing 233,476 6,867 1.79 % 64 % — % 5.15 %
+Added: Warehouse/Industrial 732,957 2,545 5.61 % 54 % — % — %
+Added: Other 82,656 929 0.64 % 55 % — % — %
+Added: Total non-owner occupied commercial mortgage term loans $ 4,262,145 $ 2,150 32.65 % 54 % — % 0.75 %
+Added: Bank-owned life insurance
+Added: The Company holds bank-owned life insurance policies (“BOLI”) on certain employees.
+Added: The carrying value of these policies was $337,502 and $391,810 at March 31, 2025 and December 31, 2024, respectively.
+Added: The Company elected to surrender $56,255 of BOLI with below market yields during the first quarter of 2025.
+Added: The proceeds were deployed into higher yielding assets.
The Company relies on deposits as its primary source of funds.
−Removed: Total deposits were $14,509,751 and $14,076,785 at September 30, 2024 and December 31, 2023, respectively.
−Removed: Noninterest-bearing deposits were $3,529,801 and $3,583,675 at September 30, 2024 and December 31, 2023, respectively, while interest-bearing deposits were $10,979,950 and $10,493,110 at September 30, 2024 and December 31, 2023, respectively.
−Removed: Interest-bearing deposits included brokered deposits of $126,995 and $461,441 at September 30, 2024 and December 31, 2023, respectively.
+Added: Total deposits were $14,772,095 and $14,572,612 at March 31, 2025 and December 31, 2024, respectively.
+Added: Noninterest-bearing deposits were $3,541,375 and $3,403,981 at March 31, 2025 and December 31, 2024, respectively, while interest-bearing deposits were $11,230,720 and $11,168,631 at March 31, 2025 and December 31, 2024, respectively.
Management continues to focus on growing and maintaining a stable source of funding, specifically noninterest-bearing deposits and other core deposits (that is, deposits excluding brokered deposits and time deposits greater than $250,000).
−Removed: Noninterest-bearing deposits represented 24.33% of total deposits at September 30, 2024, as compared to 25.46% of total deposits at December 31, 2023.
−Removed: The decrease in noninterest-bearing deposits as a percentage of total deposits primarily reflects deposit customers transferring noninterest-bearing deposits to interest-bearing deposits such as money market funds offered by the Company, other financial institutions and other financial services companies due to the elevated interest rate environment that continued in the first nine months of 2024.
+Added: Noninterest-bearing deposits represented 23.97% of total deposits at March 31, 2025, as compared to 23.36% of total deposits at December 31, 2024.
+Added: The slight increase in noninterest-bearing deposits as a percentage of total deposits was driven by the seasonal inflow of public fund deposits.
Under certain circumstances, management may elect to acquire non-core deposits (in the form of brokered deposits) or public fund deposits (which are deposits of counties, municipalities or other political subdivisions).
4 unchanged sentences
Because public fund deposits are obtained through a bid process, these deposit balances may fluctuate as competitive and market forces change.
−Removed: Although the Company has focused on growing stable sources of deposits to reduce reliance on public fund deposits, it participates in the bidding process for public fund deposits when pricing and other terms make it reasonable given market
−Removed: conditions or when management perceives that other factors, such as the public entity’s use of our treasury management or other products and services, make such participation advisable.
+Added: Although the Company has focused on growing stable sources of deposits to reduce reliance on public fund deposits, it participates in the bidding process for public fund deposits when pricing and other terms make it reasonable given market conditions or when management perceives that other factors, such as the public entity’s use of our treasury management or other products and services, make such participation advisable.
Our public fund transaction accounts are principally obtained from public universities and municipalities, including school boards and utilities.
−Removed: Public fund deposits were $2,185,034 and $1,866,495 at September 30, 2024 and December 31, 2023, respectively, and represented 15.06% and 13.26% of total deposits as of September 30, 2024 and December 31, 2023, respectively.
+Added: Public fund deposits were $2,351,241 and
+Added: $2,256,461 at March 31, 2025 and December 31, 2024, respectively, and represented 15.92% and 15.48% of total deposits as of March 31, 2025 and December 31, 2024, respectively.
Borrowed Funds
−Removed: Total borrowings include federal funds purchased, securities sold under agreements to repurchase, advances from the Federal Home Loan Bank of Dallas (the “FHLB”), borrowings from the Federal Reserve Discount Window, subordinated notes and junior subordinated debentures and are classified on the Consolidated Balance Sheets as either short-term borrowings or long-term debt.
+Added: Total borrowings may include federal funds purchased, securities sold under agreements to repurchase, advances from the Federal Home Loan Bank of Dallas (the “FHLB”), borrowings from the Federal Reserve Discount Window, subordinated notes and junior subordinated debentures and are classified on the Consolidated Balance Sheets as either short-term borrowings or long-term debt.
Short-term borrowings have original maturities less than one year and typically consist of federal funds purchased, securities sold under agreements to repurchase, and short-term FHLB advances.
The following table presents our short-term borrowings by type as of the dates presented:
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Security repurchase agreements $ 8,015 $ 8,018
3 unchanged sentences
The following table presents our long-term debt by type as of the dates presented:
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Junior subordinated debentures $ 114,150 $ 113,916
1 unchanged sentence
$ 433,309 $ 430,614
−Removed: Long-term funds obtained from the FHLB are used to match-fund fixed rate loans in order to minimize interest rate risk and to meet day-to-day liquidity needs, particularly when the cost of such borrowing compares favorably to the rates that we would be required to pay to attract deposits.
−Removed: There were no long-term advances from the FHLB outstanding at September 30, 2024 or December 31, 2023.
−Removed: All advances from the FHLB are collateralized by a blanket lien on the Bank’s loans.
−Removed: The Company had $3,449,164 of availability on unused lines of credit with the FHLB at September 30, 2024, as compared to $2,922,315 at December 31, 2023.
−Removed: The Company also had credit available at the Federal Reserve Discount Window in the amount of $634,636 with no borrowings outstanding at September 30, 2024 or December 31, 2023.
−Removed: The Company has issued subordinated notes, the proceeds of which have been used for general corporate purposes, including providing capital to support the Company’s growth organically or through strategic acquisitions, repaying indebtedness and financing investments and capital expenditures, and for investments in Renasant Bank as regulatory capital.
−Removed: The subordinated notes qualify as Tier 2 capital under current regulatory guidelines.
−Removed: The Company owns the outstanding common securities of business trusts that issued corporation-obligated mandatorily redeemable preferred capital securities to third-party investors.
−Removed: The trusts used the proceeds from the issuance of their preferred capital securities and common securities (collectively referred to as “capital securities”) to buy floating rate junior subordinated debentures issued by the Company (or by companies that the Company subsequently acquired).
−Removed: The debentures are the trusts’ only assets and interest payments from the debentures finance the distributions paid on the capital securities.
+Added: Long-term funds obtained from the FHLB are used to match-fund fixed rate loans in order to minimize interest rate risk and to meet day-to-day liquidity needs, particularly when the cost of such borrowing compares favorably to the rates that we would be required to pay to attract deposits (which has not been the case in recent periods).
+Added: Advances from the FHLB are collateralized by a blanket lien on the Bank’s loans.
+Added: The Company had $3,816,162 of availability on unused lines of credit with the FHLB at March 31, 2025, as compared to $4,004,630 at December 31, 2024.
+Added: The Company also had credit available at the Federal Reserve Discount Window in the amount of $662,630.
+Added: The Company has issued subordinated notes, and the Company owns the outstanding common securities of business trusts that issued corporation-obligated mandatorily redeemable preferred capital securities to third-party investors, the proceeds of which were used to buy floating rate junior subordinated debentures issued by the Company (or by companies that the Company subsequently acquired).
+Added: The proceeds generated by the Company’s subordinated notes and trust preferred securities transactions have been used for general corporate purposes, including providing capital to support the Company’s growth organically or through strategic acquisitions, repaying indebtedness and financing investments and capital expenditures, and for investments in Renasant Bank as regulatory capital.
+Added: The subordinated notes and trust preferred securities qualify as Tier 2 capital and Tier 1 capital, respectively, under current regulatory guidelines.
+Added: On account of the completion of the merger with The First on April 1, 2025, the trust preferred securities now qualify as Tier 2 capital.
Results of Operations
−Removed: Net income for the third quarter of 2024 was $72,455 compared to net income of $41,833 for the third quarter of 2023.
−Removed: Basic and diluted earnings per share (“EPS”) for the third quarter of 2024 were $1.18, as compared to basic and diluted EPS of $0.75 and $0.74, respectively for the third quarter of 2023.
−Removed: Net income for the nine months ended September 30, 2024, was $150,710 compared to net income of $116,554 for the same period in 2023.
−Removed: Basic and diluted EPS were $2.60 and $2.59, respectively for the first nine months of 2024 as compared to $2.08 and 2.07, respectively for the first nine months of 2023.
+Added: Net income for the first quarter of 2025 was $41,518 compared to net income of $39,409 for the first quarter of 2024.
+Added: Basic and diluted earnings per share (“EPS”) for the first quarter of 2025 were $0.65, as compared to basic and diluted EPS of $0.70 for the first quarter of 2024.
From time to time, the Company incurs expenses and charges or recognizes valuation adjustments in connection with certain transactions with respect to which management is unable to accurately predict when these items will be incurred or, when incurred, the amount of such items.
1 unchanged sentence
Three Months Ended
−Removed: September 30, 2024 September 30, 2023
−Removed: Pre-tax After-tax Impact to Diluted EPS Pre-tax After-tax Impact to Diluted EPS
−Removed: Merger and conversion expenses $ 11,273 $ 9,456 $ 0.15 $ — $ — $ —
−Removed: Gain on sale of insurance agency (53,349) (38,951) (0.63) — — —
−Removed: Nine Months Ended
−Removed: September 30, 2024 September 30, 2023
+Added: March 31, 2025 March 31, 2024
Pre-tax After-tax Impact to Diluted EPS Pre-tax After-tax Impact to Diluted EPS
Merger and conversion expenses $ 791 $ 593 $ 0.01 $ — $ — $ —
−Removed: Loss on sale of securities — — — 22,438 17,859 0.31
−Removed: Gain on sale of insurance agency (53,349) (38,951) (0.67) — — —
+Added: Gain on sale of MSR $ — $ — $ — $ 3,472 $ 2,774 $ 0.05
Net Interest Income
−Removed: Net interest income, the difference between interest earned on assets and the cost of interest-bearing liabilities, is the largest component of our net income, comprising 59.93% of total revenue (i.e., net interest income on a fully taxable equivalent basis and noninterest income) for the third quarter of 2024 (this percentage for the quarter was impacted by the noninterest income generated by the sale of our insurance agency business).
+Added: Net interest income, the difference between interest earned on assets and the cost of interest-bearing liabilities, is the largest component of our net income, comprising 79.03% of total revenue (i.e., net interest income on a fully taxable equivalent basis and noninterest income) for the first quarter of 2025.
The primary concerns in managing net interest income are the volume, mix and repricing of assets and liabilities.
−Removed: Net interest income was $130,998 and $379,314 for the three and nine months ended September 30, 2024, as compared to $127,383 and $393,374 for the same periods in 2023.
−Removed: On a tax equivalent basis, net interest income was $133,576 and $387,024 for the three and nine months ended September 30, 2024, as compared to $130,131 and $401,745 for the same periods in 2023.
+Added: Net interest income was $134,197 for the three months ended March 31, 2025, as compared to $123,290 for the same period in 2024.
+Added: On a tax equivalent basis, net interest income was $137,432 for the three months ended March 31, 2025, as compared to $125,850 for the same period in 2024.
The following table sets forth average balance sheet data, including all major categories of interest-earning assets and interest-bearing liabilities, together with the interest earned or interest paid and the average yield or average rate paid on each such category on a tax-equivalent basis for the periods presented:
−Removed: Three Months Ended September 30,
−Removed: Balance Interest
−Removed: Expense Yield/
−Removed: Balance Interest
−Removed: Expense Yield/
−Removed: Interest-earning assets:
−Removed: Loans held for investment $ 12,584,104 $ 204,935 6.47 % $ 12,030,109 $ 183,521 6.06 %
−Removed: Loans held for sale 272,110 4,212 6.19 227,982 3,751 6.58
−Removed: Taxable 1,794,421 9,212 2.05 2,097,285 9,459 1.80
−Removed: Tax-exempt (1)
−Removed: 262,621 1,390 2.12 285,588 1,566 2.19
−Removed: Interest-bearing balances with banks 894,313 11,872 5.28 729,049 10,128 5.51
−Removed: Total interest-earning assets 15,807,569 231,621 5.82 15,370,013 208,425 5.39
−Removed: Cash and due from banks 189,425 180,708
−Removed: Intangible assets 1,004,701 1,012,460
−Removed: Other assets 679,969 672,232
−Removed: Total assets $ 17,681,664 $ 17,235,413
−Removed: Liabilities and shareholders’ equity
−Removed: Interest-bearing liabilities:
−Removed: Interest-bearing demand (2)
−Removed: $ 7,333,508 $ 60,326 3.26 % $ 6,520,145 $ 41,464 2.52 %
−Removed: Savings deposits 815,545 729 0.36 942,619 793 0.33
−Removed: Brokered deposits 150,991 1,998 5.25 947,387 12,732 5.33
−Removed: Time deposits 2,546,860 27,734 4.33 2,002,506 15,917 3.15
−Removed: Total interest-bearing deposits 10,846,904 90,787 3.32 10,412,657 70,906 2.70
−Removed: Borrowed funds 562,146 7,258 5.14 564,772 7,388 5.22
−Removed: Total interest-bearing liabilities 11,409,050 98,045 3.41 10,977,429 78,294 2.84
−Removed: Noninterest-bearing deposits 3,509,266 3,800,160
−Removed: Other liabilities 209,762 226,219
−Removed: Shareholders’ equity 2,553,586 2,231,605
−Removed: Total liabilities and shareholders’ equity $ 17,681,664 $ 17,235,413
−Removed: Net interest income/net interest margin $ 133,576 3.36 % $ 130,131 3.36 %
−Removed: Government and some U.S.
−Removed: Government Agency securities are tax-exempt in the states in which the Company operates.
−Removed: (2) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Balance Interest
37 unchanged sentences
External factors include changes in market interest rates, competition and other factors affecting the banking industry in general, and the shape of the interest rate yield curve.
−Removed: The largest contributing factor to the decrease in net interest income for the nine months ended September 30, 2024, as compared to the same period in 2023, was the rising rate environment that began in 2022 and continued throughout 2023.
−Removed: The higher interest rates benefited yields on earning assets, but this increase was more than offset by an increase in interest expense.
−Removed: The rising interest rates negatively impacted both the cost and mix of our funding sources.
−Removed: The Federal Reserve lowered the federal funds rate by 50 basis points in September 2024, but it did not have a material impact on the Company’s results for the third quarter of 2024.
−Removed: The Company has continued its efforts to mitigate increases in the cost of funding through maintaining noninterest-bearing deposits, staying disciplined yet competitive in pricing on interest-bearing deposits in the current rate environment and accessing alternative sources of liquidity, such as brokered deposits.
−Removed: These efforts, coupled with loan growth, resulted in the growth of net interest income for the three months ended September 30, 2024, as compared to the same period in 2023.
−Removed: The following tables set forth a summary of the changes in interest earned, on a tax equivalent basis, and interest paid resulting from changes in volume and rates for the Company for the three and nine months ended September 30, 2024, as compared to the same periods in 2023 (the changes attributable to the combined impact of yield/rate and volume have been allocated on a pro-rata basis using the absolute value of amounts calculated):
−Removed: Three Months Ended September 30, 2024 Compared to the Three Months Ended September 30, 2023
−Removed: Volume Rate Net
−Removed: Interest income:
−Removed: Loans held for investment $ 8,662 $ 12,752 $ 21,414
−Removed: Loans held for sale 695 (234) 461
−Removed: Taxable (1,499) 1,252 (247)
−Removed: Tax-exempt (123) (53) (176)
−Removed: Interest-bearing balances with banks 2,183 (439) 1,744
−Removed: Total interest-earning assets 9,918 13,278 23,196
−Removed: Interest expense:
−Removed: Interest-bearing demand deposits 5,620 13,242 18,862
−Removed: Savings deposits (112) 48 (64)
−Removed: Brokered deposits (10,542) (192) (10,734)
−Removed: Time deposits 4,975 6,842 11,817
−Removed: Borrowed funds (45) (85) (130)
−Removed: Total interest-bearing liabilities (104) 19,855 19,751
−Removed: Change in net interest income $ 10,022 $ (6,577) $ 3,445
−Removed: Nine months ended September 30, 2024 Compared to the Nine Months Ended September 30, 2023
+Added: Strong loan growth and the Federal Reserve lowering the federal funds rate by 100 basis points in the second half of 2024 were the largest contributing factors to the increase in net interest income for the three months ended March 31, 2025, as compared to the same period in 2024.
+Added: The lower interest rates generated a positive impact to both the cost and mix of our funding sources.
+Added: The Company has continued its efforts to mitigate increases in the cost of funding due to competition, increases in the federal funds rate or otherwise through maintaining noninterest-bearing deposits, and staying disciplined yet competitive in pricing on interest-bearing deposits in the current rate environment.
+Added: The following tables set forth a summary of the changes in interest earned, on a tax equivalent basis, and interest paid resulting from changes in volume and rates for the Company for the three months ended March 31, 2025, as compared to the same period
+Added: in 2024 (the changes attributable to the combined impact of yield/rate and volume have been allocated on a pro-rata basis using the absolute value of amounts calculated):
+Added: Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024
Volume Rate Net
14 unchanged sentences
Change in net interest income $ 9,246 $ 2,336 $ 11,582
−Removed: Interest income, on a tax equivalent basis, was $231,621 and $670,143 for the three and nine months ended September 30, 2024, as compared to $208,425 and $595,259 for the same periods in 2023.
−Removed: The increase in interest income, on a tax equivalent basis, for the three and nine months ended September 30, 2024, as compared to the same time periods in 2023 is due primarily to interest rate increases by the Federal Reserve beginning in 2022 and continuing into 2023.
+Added: Interest income, on a tax equivalent basis, was $223,565 for the three months ended March 31, 2025, as compared to $215,739 for the same period in 2024.
+Added: The increase in interest income, on a tax equivalent basis, for the three months ended March 31, 2025, as compared to the same time period in 2024 is due primarily to loan growth.
The following tables present the percentage of total average earning assets, by type and yield, for the periods presented:
1 unchanged sentence
Three Months Ended Three Months Ended
−Removed: September 30, September 30,
+Added: March 31, March 31,
2025 2024 2025 2024
4 unchanged sentences
Total earning assets 100.00 % 100.00 % 5.61 % 5.66 %
−Removed: Percentage of Total Average Earning Assets Yield
−Removed: Nine Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2024 2023 2024 2023
−Removed: Loans held for investment 80.63 % 77.22 % 6.39 % 5.89 %
−Removed: Loans held for sale 1.39 1.14 6.20 6.46
−Removed: Securities 13.55 17.91 2.05 2.00
−Removed: Interest-bearing balances with banks 4.43 3.73 5.35 5.25
−Removed: Total earning assets 100.00 % 100.00 % 5.75 % 5.18 %
−Removed: For the third quarter of 2024, interest income on loans held for investment, on a tax equivalent basis, increased $21,414 to $204,935 from $183,521 for the same period in 2023.
−Removed: For the nine months ended September 30, 2024, interest income on loans held for investment, on a tax equivalent basis, increased $77,205 to $600,245 from $523,040 in the same period in 2023.
−Removed: The Federal Reserve continued to raise interest rates in 2023, which positively impacted the Company’s loan pricing, and the year-to-date average balance of loans held for investment increased $686,140 from September 2023, thereby resulting in the increase in interest income on loans held for investment for the three and nine months ended September 30, 2024, as compared to the same periods in 2023.
+Added: For the first quarter of 2025, interest income on loans held for investment, on a tax equivalent basis, increased $4,864 to $199,504 from $194,640 for the same period in 2024.
+Added: The year-to-date average balance of loans held for investment increased $558,893 from March 2024, thereby resulting in the increase in interest income on loans held for investment for the three months ended March 31, 2025, as compared to the same period in 2024.
The impact from interest income collected on problem loans and purchase accounting adjustments on loans to total interest income on loans held for investment, loan yield and net interest margin is shown in the following table for the periods presented.
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2024 2023 2024 2023
+Added: Three Months Ended
Net interest income collected on problem loans $ 1,026 $ 123
3 unchanged sentences
Impact to net interest margin 0.03 % 0.02 %
−Removed: Interest income on loans held for sale (consisting of mortgage loans held for sale) increased $461 to $4,212 for the third quarter of 2024 from $3,751 for the same period in 2023 and increased $1,572 to $10,050 for the nine months ended September 30, 2024 from $8,478 for the same period in 2023.
−Removed: Investment income, on a tax equivalent basis, decreased $423 to $10,602 for the third quarter of 2024 from $11,025 for the third quarter of 2023.
−Removed: Investment income, on a tax equivalent basis, decreased $8,884 to $32,321 for the nine months ended September 30, 2024 from $41,205 for the same period in 2023.
−Removed: The Company sold a portion of its securities portfolio in each of the first quarter of 2024 and the second quarter of 2023, driving the decrease to investment income for both the three and nine months ended September 30, 2024.
−Removed: The tax equivalent yield on the investment portfolio for the third quarter of 2024 was
−Removed: 2.06%, up 21 basis points from 1.85% for the same period in 2023.
−Removed: The tax equivalent yield on the investment portfolio for the nine months ended September 30, 2024 was 2.05%, up five basis points from 2.00% for the same period in 2023.
−Removed: Interest expense was $98,045 for the third quarter of 2024 as compared to $78,294 for the same period in 2023.
−Removed: Interest expense for the nine months ended September 30, 2024 was $283,119 as compared to $193,514 for the same period in 2023.
−Removed: The following tables present, by type, the Company’s funding sources, which consist of total average deposits and borrowed funds, and the total cost of each funding source for the periods presented:
+Added: Interest income on loans held for sale (consisting of mortgage loans held for sale) increased $700 to $3,008 for the first quarter of 2025 from $2,308 for the same period in 2024.
+Added: Investment income, on a tax equivalent basis, increased $1,404 to $12,414 for the first quarter of 2025 from $11,010 for the first quarter of 2024.
+Added: The tax equivalent yield on the investment portfolio for the first quarter of 2025 was 2.32%, up 28 basis points from 2.04% for the same period in 2024.
+Added: Interest expense was $86,133 for the first quarter of 2025 as compared to $89,889 for the same period in 2024.
+Added: The following table presents, by type, the Company’s funding sources, which consist of total average deposits and borrowed funds, and the total cost of each funding source for the periods presented:
Percentage of Total Average Deposits and Borrowed Funds Cost of Funds
Three Months Ended Three Months Ended
−Removed: September 30, September 30,
+Added: March 31, March 31,
2025 2024 2025 2024
8 unchanged sentences
Total deposits and borrowed funds 100.00 % 100.00 % 2.31 % 2.46 %
−Removed: Percentage of Total Average Deposits and Borrowed Funds Cost of Funds
−Removed: Nine Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2024 2023 2024 2023
−Removed: Noninterest-bearing demand 23.74 % 27.48 % — % — %
−Removed: Interest-bearing demand 48.18 42.06 3.16 1.95
−Removed: Savings 5.67 6.74 0.35 0.33
−Removed: Brokered deposits 2.00 4.85 5.36 5.10
−Removed: Time deposits 16.57 11.94 4.25 2.59
−Removed: Short-term borrowings 0.83 3.90 1.44 4.24
−Removed: Subordinated notes 2.25 2.27 5.51 5.30
−Removed: Other long term borrowings 0.76 0.76 8.23 7.93
−Removed: Total deposits and borrowed funds 100.00 % 100.00 % 2.55 % 1.75 %
−Removed: Interest expense on deposits was $90,787 and $70,906 for the three months ended September 30, 2024 and 2023, respectively, and the cost of total deposits was 2.51% and 1.98% for the same respective periods.
−Removed: Interest expense on deposits was $261,021 and $155,163 for the nine months ended September 30, 2024 and 2023, respectively, and the cost of total deposits was 2.45% and 1.50% for the same respective periods.
−Removed: The increase in both deposit expense and cost is attributable to the Company’s efforts to offer competitive deposit rates in the high interest rate environment.
−Removed: Following the bank failures and broader industry concerns about bank liquidity that arose in March 2023, the Company maintained additional on-balance sheet liquidity, primarily in the form of brokered deposits and short-term FHLB advances.
−Removed: As risks abated, the Company repaid the advances and has allowed brokered deposits to mature, mitigating to some degree the impact of rising rates on our deposit costs.
+Added: Interest expense on deposits was $79,386 and $82,613 for the three months ended March 31, 2025 and 2024, respectively, and the cost of total deposits was 2.22% and 2.35% for the same respective periods.
+Added: The decrease in both deposit expense and cost is attributable to the Federal Reserve’s rate cuts during the second half of 2024.
+Added: As liquidity risks abated, the Company also repaid advances and allowed brokered deposits to mature, which lowered our deposit costs.
The Company has continued its efforts to maintain non-interest bearing deposits.
1 unchanged sentence
however, the Company may rely on brokered deposits or wholesale borrowings when advantageous or otherwise deemed advisable due to market conditions.
−Removed: Interest expense on total borrowings was $7,258 and $7,388 for the three months ended September 30, 2024 and 2023, respectively.
−Removed: Interest expense on total borrowings was $22,098 and $38,351 for the nine months ended September 30, 2024 and 2023, respectively.
−Removed: The decrease in interest expense on borrowings is a result of the repayment of FHLB borrowings during 2023 and the first quarter of 2024.
+Added: Interest expense on total borrowings was $6,747 and $7,276 for the three months ended March 31, 2025 and 2024, respectively.
+Added: The decrease in interest expense on borrowings is a result of the Federal Reserve’s rate cuts during the second half of 2024.
A more detailed discussion of the cost of our funding sources is set forth below under the heading “Liquidity and Capital Resources” in this Item.
1 unchanged sentence
Noninterest Income to Average Assets
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
−Removed: 2.01% 0.88% 1.30% 0.72%
−Removed: Total noninterest income includes fees generated from deposit services and other fees and commissions, income from our insurance, wealth management and mortgage banking operations, realized gains and losses on the sale of securities, the gain from the sale of our insurance agency and all other noninterest income.
+Added: Three Months Ended March 31,
+Added: Total noninterest income includes fees generated from deposit services and other fees and commissions, income from our wealth management and mortgage banking operations, realized gains and losses on the sale of securities and all other noninterest income.
Our focus is to develop and enhance our products that generate noninterest income in order to diversify revenue sources.
−Removed: Noninterest income was $89,299 for the third quarter of 2024 as compared to $38,200 for the same period in 2023.
−Removed: Noninterest income was $169,442 for the nine months ended September 30, 2024 as compared to $92,719 for the same period in 2023.
−Removed: The increase over the three and nine month periods is primarily due to the gain on sale of our insurance agency business on July 1, 2024, as described under the “Recent Developments” heading above.
−Removed: Noninterest income in future periods will be negatively impacted by this sale, as we will no longer earn insurance commissions (the amount of these commissions for the three and nine months ended September 30, 2023 are described below).
+Added: Noninterest income was $36,468 for the first quarter of 2025 as compared to $41,381 for the same period in 2024.
+Added: The decrease over the three month period is primarily due to the sale of our insurance agency business on July 1, 2024.
+Added: Noninterest income for the first quarter of 2024 included income earned on insurance products in the amount of $2,716, while the Company did not earn any such income in the first quarter of 2025.
Service charges on deposit accounts include maintenance fees on accounts, per item charges, account enhancement charges for additional packaged benefits and overdraft fees (which encompasses traditional overdraft fees as well as non-sufficient funds fees).
−Removed: Service charges on deposit accounts were $10,438 and $9,743 for the third quarter of 2024 and 2023, respectively, and $31,230 and $28,596 for the nine months ended September 30, 2024 and 2023, respectively.
−Removed: Overdraft fees, the largest component of service charges on deposits, were $5,122 for the three months ended September 30, 2024, as compared to $5,065 for the same period in 2023.
−Removed: These fees were $15,380 for the nine months ended September 30, 2024 compared to $14,734 for the same period in 2023.
−Removed: Fees and commissions were $4,116 during the third quarter of 2024 as compared to $4,108 for the same period in 2023, and were $12,009 for the first nine months of 2024 as compared to $13,771 for the same period in 2023.
+Added: Service charges on deposit accounts were $10,364 and $10,506 for the first quarter of 2025 and 2024, respectively.
+Added: Overdraft fees, the largest component of service charges on deposits, were $5,140 for the three months ended March 31, 2025, as compared to $5,256 for the same period in 2024.
+Added: Fees and commissions were $3,860 during the first quarter of 2025 as compared to $3,949 for the same period in 2024.
Fees and commissions include fees related to deposit services, such as ATM fees and interchange fees on debit card transactions, and lending services, such as collateral management fees and unused commitment fees.
−Removed: For the third quarter of 2024, interchange fees were $2,246 as compared to $2,337 for the same period in 2023.
−Removed: Interchange fees were $6,697 for the nine months ended September 30, 2024 as compared to $7,130 for the same period in 2023.
−Removed: Prior to its sale on July 1, 2024, Renasant Insurance offered a range of commercial and personal insurance products through major insurance carriers.
−Removed: Income earned on insurance products was $3,264 for the three months ended September 30, 2023, and was $5,474 and $8,519 for the nine months ended September 30, 2024 and 2023, respectively.
+Added: For the first quarter of 2025, interchange fees were $2,013 as compared to $2,130 for the same period in 2024.
Our Wealth Management segment has two divisions:
4 unchanged sentences
The Financial Services division provides specialized products and services to our customers, which include fixed and variable annuities, mutual funds, and stocks offered through a third party provider.
−Removed: Wealth Management revenue was $5,835 for the third quarter of 2024 compared to $5,986 for the same period in 2023, and was $17,188 for the nine months ended September 30, 2024 compared to $16,464 for the same period in 2023.
−Removed: The market value of assets under management or administration was $5,694,433 and $4,999,504 at September 30, 2024 and September 30, 2023, respectively.
+Added: Wealth Management revenue was $7,067 for the first quarter of 2025 compared to $5,669 for the same period in 2024.
+Added: The market value of assets under management or administration was $6,469,093 and $5,386,011 at March 31, 2025 and March 31, 2024, respectively.
Mortgage banking income is derived from the origination and sale of mortgage loans and the servicing of mortgage loans that the Company has sold but retained the right to service.
Although loan fees and some interest income are derived from mortgage loans held for sale, the main source of income is gains from the sale of these loans in the secondary market.
−Removed: Interest rate lock commitments and originations of mortgage loans to be sold totaled $543,597 and $412,059, respectively, in the third quarter of 2024 compared to $494,442 and $397,355, respectively for the same period in 2023.
−Removed: Interest rate lock commitments and originations of mortgage loans to be sold totaled $1,548,198 and $1,053,190 in the nine months ended September 30, 2024 compared to $1,734,035 and $1,057,277 for the same period in 2023.
−Removed: The decrease in interest rate lock commitments for the nine months ended September 30, 2024 as compared to the same period in 2023 was due to continued increases in mortgage interest rates during 2023, significantly dampening demand for mortgages nationwide.
−Removed: In the first quarter of 2024, the Company
−Removed: sold a portion of its mortgage servicing rights portfolio with a carrying value of $19,539 for a pre-tax gain of $3,472.
+Added: Interest rate lock commitments and originations of mortgage loans to be sold totaled $632,125 and $303,158, respectively, in the first quarter of 2025 compared to $444,297 and $260,424, respectively for the same period in 2024.
+Added: The increase in interest rate lock commitments for the three months ended March 31, 2025 as compared to the same period in 2024 was due to the slight decrease in mortgage interest rates during the first quarter of 2025 as compared to the same period in 2024.
+Added: The high rates in 2024 significantly dampened demand for mortgages nationwide.
+Added: In the first quarter of 2024, the Company sold a portion of its mortgage servicing rights portfolio with a carrying value of $19,539 for a pre-tax gain of $3,472.
The table below presents the components of mortgage banking income included in noninterest income for the periods presented.
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
+Added: Three Months Ended March 31,
Gain on sales of loans, net (1)
2 unchanged sentences
Mortgage servicing income, net (2)
−Removed: 1,302 1,860 7,916 6,067
Mortgage banking income, net $ 8,147 $ 11,370
1 unchanged sentence
(2) Mortgage servicing income, net includes gain on sale of MSR
−Removed: Bank-owned life insurance (“BOLI”) income is derived from changes in the cash surrender value of the bank-owned life insurance policies and proceeds received upon the death of covered individuals.
−Removed: BOLI income was $2,858 for the three months ended September 30, 2024 as compared to $2,469 for the same period in 2023, and $8,250 for the nine months ended September 30, 2024 as compared to $7,874 for the same period in 2023.
−Removed: Other noninterest income was $4,256 and $5,097 for the three months ended September 30, 2024 and 2023, respectively, and was $12,371 and $14,112 for the nine months ended September 30, 2024 and 2023, respectively.
+Added: BOLI income is derived from changes in the cash surrender value of the bank-owned life insurance policies and proceeds received upon the death of covered individuals.
+Added: BOLI income was $2,929 for the three months ended March 31, 2025 as compared to $2,691 for the same period in 2024.
+Added: Other noninterest income was $4,101 and $4,424 for the three months ended March 31, 2025 and 2024, respectively.
Other noninterest income includes income from our SBA banking division, our capital markets division and other miscellaneous income and can fluctuate based on production in our SBA banking and capital markets divisions and recognition of other seasonal income items.
1 unchanged sentence
Noninterest Expense to Average Assets
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
−Removed: 2.74% 2.49% 2.66% 2.54%
−Removed: Noninterest expense was $121,983 and $108,369 for the third quarter of 2024 and 2023, respectively, and was $346,871 and $327,742 for the nine months ended September 30, 2024 and 2023, respectively.
−Removed: The increase is primarily due to $11,273 in expenses relating to the proposed merger with The First and the sale of substantially all of the assets of Renasant Insurance.
−Removed: Salaries and employee benefits increased $1,849 to $71,307 for the third quarter of 2024 as compared to $69,458 for the same period in 2023.
−Removed: Salaries and employee benefits increased $3,581 to $213,508 for the nine months ended September 30, 2024 as compared to $209,927 for the same period in 2023.
−Removed: The minimal change in salaries and employee benefits is primarily due to annual merit increases implemented in April 2024 and an increase in the cost associated with the Company’s health and welfare benefits offered to its employees offset by decreases in salaries and benefits within our mortgage division attributable to declines in mortgage production as well as the termination of insurance employees following the sale of substantially all of the assets of Renasant Insurance.
−Removed: Data processing costs were $4,133 in the third quarter of 2024 as compared to $3,907 for the same period in 2023 and were $11,885 for the nine months ended September 30, 2024 as compared to $11,224 for the same period in 2023.
+Added: Three Months Ended March 31,
+Added: Noninterest expense was $113,949 and $112,912 for the first quarter of 2025 and 2024, respectively.
+Added: The increase is primarily due to $791 in expenses relating to the proposed merger with The First.
+Added: Salaries and employee benefits increased $487 to $71,957 for the first quarter of 2025 as compared to $71,470 for the same period in 2024.
+Added: The change in salaries and employee benefits is primarily due to annual merit increases implemented in April 2024 and increased mortgage commissions, driven by increased mortgage production, offset by salary and employee benefit savings following the sale of our insurance agency in July 2024.
+Added: Data processing costs were $4,089 in the first quarter of 2025 as compared to $3,807 for the same period in 2024.
The Company continues to examine new and existing contracts to negotiate favorable terms to offset the increased variable cost components of our data processing costs, such as new accounts and increased transaction volume.
−Removed: Net occupancy and equipment expense for the third quarter of 2024 was $11,415, as compared to $11,548 for the same period in 2023.
−Removed: These expenses for the first nine months of 2024 were $34,648, as compared to $34,818 for the same period in 2023.
+Added: Net occupancy and equipment expense for the first quarter of 2025 was $11,754, as compared to $11,389 for the same period in 2024.
Professional fees include fees for legal and accounting services, such as routine litigation matters, external audit services as well as assistance in complying with newly-enacted and existing banking and other governmental regulations.
−Removed: Professional fees were $3,189 for the third quarter of 2024 as compared to $3,338 for the same period in 2023 and were $9,732 for the nine months ended September 30, 2024 as compared to $10,817 for the same period in 2023.
−Removed: Advertising and public relations expense was $3,677 for the third quarter of 2024 as compared to $3,474 for the same period in 2023 and was $12,370 for the nine months ended September 30, 2024 as compared to $11,642 for the same period in 2023.
−Removed: During the nine months ended September 30, 2024 and 2023, the Company contributed approximately $1,305 and $1,292, respectively, to charitable organizations throughout Mississippi and Georgia, which contributions are included in our advertising and public relations expense, for which it received a dollar-for-dollar tax credit.
−Removed: Amortization of intangible assets totaled $1,160 and $1,311 for the third quarter of 2024 and 2023 and $3,558 and $4,106 for the nine months ended September 30, 2024 and 2023, respectively.
+Added: Professional fees were $2,884 for the first quarter of 2025 as compared to $3,348 for the same period in 2024.
+Added: Advertising and public relations expense was $4,297 for the first quarter of 2025 as compared to $4,886 for the same period in 2024.
+Added: During the three months ended March 31, 2025 and 2024, the Company contributed approximately $925 and $1,055, respectively, to charitable organizations throughout Mississippi and Georgia, which contributions are included in our advertising and public relations expense, for which it received a dollar-for-dollar tax credit.
+Added: Amortization of intangible assets totaled $1,080 and $1,212 for the first quarter of 2025 and 2024.
This amortization relates to finite-lived intangible assets which are being amortized over the useful lives as determined at acquisition.
These finite-lived intangible assets have remaining estimated useful lives ranging from approximately 1 year to 6 years.
−Removed: Communication expenses, those expenses incurred for communication to clients and between employees, were $2,176 for the third quarter of 2024 as compared to $2,006 for the same period in 2023.
−Removed: Communication expenses were $6,312 for the nine months ended September 30, 2024 as compared to $6,212 for the same period in 2023.
+Added: Communication expenses, those expenses incurred for communication to clients and between employees, were $2,033 for the first quarter of 2025 as compared to $2,024 for the same period in 2024.
Other noninterest expense includes business development and travel expenses, other discretionary expenses, loan fees expense and other miscellaneous fees and operating expenses.
−Removed: Other noninterest expense was $13,597 and $43,317 for the three and nine months ended September 30, 2024 as compared to $13,447 and $39,035 for the same periods in 2023.
−Removed: The increase in other noninterest expense is primarily attributable to lower mortgage deferred loan origination expense in the first nine months of 2024 compared to the same period in 2023.
−Removed: The amount of loan origination expense deferred is directly correlated to the volume and mix of our loan production during the period.
−Removed: The Company also accrued $700 for an FDIC deposit insurance special assessment in the first quarter of 2024.
−Removed: Efficiency Ratio
+Added: Other noninterest expense was $14,379 for the three months ended March 31, 2025 as compared to $14,669 for the same period in 2024.
Efficiency Ratio
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2024 2023 2024 2023
+Added: Three Months Ended March 31,
Efficiency ratio 65.53 % 67.52 %
2 unchanged sentences
That is, the ratio is designed to reflect the percentage of one dollar that we must expend to generate a dollar of revenue.) The Company calculates this ratio by dividing noninterest expense by the sum of net interest income on a fully tax equivalent basis and noninterest income.
−Removed: The efficiency ratio for both the three and nine months ended September 30, 2024 was impacted by the noninterest income generated by the sale of our insurance agency business.
−Removed: We remain committed to aggressively managing our costs within the framework of our business model.
−Removed: Our goal is to improve the efficiency ratio over time from currently reported levels as a result of revenue growth while at the same time controlling noninterest expenses.
−Removed: Income tax expense for the third quarter of 2024 and 2023 was $24,924 and $10,766, respectively, and $44,502 and $28,722 for the nine months ended September 30, 2024 and 2023, respectively.
−Removed: The increase in income tax expense is primarily due to the increase in pre-tax income generated from the gain on sale of substantially all of the assets of the insurance agency, nondeductible expenses from the planned acquisition of The First and certain changes to the Company’s investment portfolio.
+Added: The improvement in our efficiency ratio for the three months ended March 31, 2025 as compared to the same period in 2024 was driven by the increase in our net interest income and is a reflection of our commitment to aggressively manage our costs within the framework of our business model.
+Added: Our goal is to improve the
+Added: efficiency ratio over time from currently reported levels as a result of revenue growth while at the same time controlling noninterest expenses.
+Added: Income tax expense for the first quarter of 2025 and 2024 was $10,448 and $9,912, respectively.
+Added: The increase in income tax expense is primarily due to the increase in pre-tax income, partially offset by an increase in the generation of certain federal tax credits.
Risk Management
3 unchanged sentences
Credit Risk and Allowance for Credit Losses on Loans and Unfunded Commitments
−Removed: Management of Credit Risk .
−Removed: Inherent in any lending activity is credit risk, that is, the risk of loss should a borrower default.
−Removed: Credit risk is monitored and managed on an ongoing basis by our credit administration department, our problem asset resolution committee and the Board of Directors Credit Review Committee.
−Removed: Oversight of the Company’s lending operations (including adherence to our policies and procedures governing the loan approval and monitoring process), credit quality and loss mitigation are major concerns of credit administration and these committees.
−Removed: The Company’s central appraisal review department reviews and approves third-party appraisals obtained by the Company on real estate collateral and monitors loan maturities to ensure updated appraisals are obtained.
−Removed: This department is managed by a State Certified General Real Estate Appraiser and employs three additional State Certified General Real Estate Appraisers and four real estate evaluators.
−Removed: In addition, we maintain a loan review staff to independently monitor loan quality and lending practices.
−Removed: Loan review personnel monitor and, if necessary, adjust the grades assigned to loans through periodic examination, focusing their review on commercial and real estate loans rather than consumer and small balance consumer mortgage loans, such as 1-4 family mortgage loans.
−Removed: In compliance with loan policy, the lending staff is given lending limits based on their knowledge and experience.
−Removed: In addition, each lending officer’s prior performance is evaluated for credit quality and compliance as a tool for establishing and enhancing lending limits.
−Removed: Before funds are advanced on consumer and commercial loans below certain dollar thresholds, loans are reviewed and scored using centralized underwriting methodologies.
−Removed: Loan quality, or “risk-rating,” grades are assigned based upon certain factors, which include the scoring of the loans.
−Removed: This information is used to assist management in monitoring credit quality.
−Removed: Loan requests of amounts greater than an officer’s lending limit are reviewed for approval by senior credit officers or potentially the chief credit officer.
−Removed: 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.
−Removed: Loan grades range from 10 to 95, with 10 being loans with the least credit risk.
−Removed: Management’s problem asset resolution committee and the Board of Directors’ Credit Review Committee monitor loans that are past due or those that have been downgraded to criticized due to a decline in the collateral value or cash flow of the borrower.
−Removed: This information is used to assist management in monitoring credit quality.
−Removed: When the ultimate collectability of a loan’s principal is in doubt, wholly or partially, the loan is placed on nonaccrual.
−Removed: After all collection efforts have failed, collateral securing loans may be repossessed and sold or, for loans secured by real estate, foreclosure proceedings initiated.
−Removed: The collateral is sold at public auction or private sale for fair market value (based upon recent appraisals as described above), with fees associated with the foreclosure being deducted from the sales price.
−Removed: The purchase price is applied to the outstanding loan balance.
−Removed: Any remaining balance is charged-off, which reduces the allowance for credit losses on loans.
+Added: Management of Credit Risk – Roles and Responsibilities.
+Added: Inherent in any lending activity is credit risk related to asset quality deterioration and its impact on capital should a borrower default.
+Added: Credit risk is monitored and managed on an ongoing basis using a cross-functional and multi-layered approach that includes the Company’s loan production, credit administration (including appraisal review), and internal loan review functions.
+Added: The Board of Directors, and specifically its Credit Review Committee, provide oversight and governance of the Company’s credit risk management process.
+Added: The first line of defense against credit risk is embedded within our lending function.
+Added: An integral part of a lending officer’s responsibilities is to assess credit risk at the inception of the lending relationship, monitor ongoing risk over the life of the loan, and report any changes in asset quality or other components of credit risk to the appropriate parties within the Company.
+Added: The Company’s policies and procedures governing our lending function provide guidelines for assigning lending limits based on a lending officer’s knowledge and experience.
+Added: These lending limits are monitored on an ongoing basis for appropriateness based on evaluations of the credit quality and compliance with the approved terms of the loan agreements within such lending officer’s loan portfolio.
+Added: Based on the Company’s risk appetite and procedures for the management of loan concentrations (by geography, collateral type and other criteria), a lending officer may be subject to additional levels of approval for new loan originations, so that more technical expertise and greater oversight are allocated to such portfolio.
+Added: The Company’s credit administration function is considered the second line of defense against credit risk.
+Added: Oversight of the Company’s lending operations (including adherence to our policies and procedures governing the loan underwriting and monitoring process), ongoing credit quality monitoring and loss mitigation are the primary focus areas of credit administration.
+Added: This includes monitoring the loan portfolio to ensure it is properly underwritten, evaluating credit quality metrics to identify indicators of potential loss and assigning risk rating grades which appropriately reflect the potential risk of loss.
+Added: The Company’s central appraisal review department, which operates within credit administration, engages, reviews and approves third-party appraisals obtained by the Company on real estate collateral in accordance with banking regulations.
+Added: This department is managed by a State Certified General Real Estate Appraiser and employs other trained appraisers and evaluators.
+Added: The internal loan review function is considered the third line of defense and operates independently of credit administration to monitor the Company’s lending practices and loan quality.
+Added: Loan review personnel evaluate and, if necessary, adjust the risk rating grades assigned to loans through periodic examination, focusing their review on commercial and real estate loans, and the consumer loan portfolio.
+Added: Finally, the Company’s internal audit department provides oversight of all of the above functions.
+Added: Internal audit staff reviews, among other things, whether these units are operating in adherence to their respective policies, processes and procedures.
+Added: The internal audit department reports independently to the Board’s Audit Committee.
+Added: Management of Credit Risk – Risk Measurement Practices .
+Added: For commercial and commercial real estate secured loans, internal risk-rating grades are assigned based on an analysis of the financial and collateral strength and other credit attributes underlying each loan.
+Added: Risk rating grades are evaluated on an ongoing basis over the life of the loan.
+Added: The Company maintains an internal risk rating scale that aligns with regulatory risk classifications.
+Added: For more information about the Company’s risk rating grades, see the information under the heading “Credit Quality” in Note 3, “Loans,” in the Notes to Consolidated Financial Statements in Item 1, Financial Statements and Supplementary Data, in this report.
+Added: In response to changes in the economic, geopolitical, or operating environments impacting the Company’s loan portfolio, the Company may implement additional or enhanced risk management practices.
+Added: The Company adjusts its processes to the current
+Added: environment and evaluates the sensitivity of industry sectors, loan types and underlying collateral to changes in macroeconomic factors.
+Added: Such factors include, but are not limited to, changes in interest rates, inflation on goods, labor costs, and supply chain disruptions.
+Added: When such factors indicate that a heightened level of credit risk may impact our portfolio, risk management procedures are expanded to include enhanced oversight of past due loans, documented plans for resolving problem loans, enhanced exception monitoring as well as targeted reviews of loans within certain risk classifications.
+Added: The Company uses information from these risk measurement processes to formulate its credit risk appetite statement, which is used to manage production activity and concentrations within the portfolio, whether by collateral type, industry, geography, relationship size or others factors, such that the Company’s loan mix is consistent with its risk tolerance and does not expose the Company to undue risk.
+Added: For more information about the Company’s evaluation of loan concentrations, see the information under the heading “Loans” in the Financial Condition section above.
+Added: Management of Credit Risk – Loss Identification .
+Added: Loans that are past due or not in compliance with financial or performance covenants, or that are otherwise adversely rated are subject to enhanced scrutiny and monitoring through a variety of processes within our special assets department, which is a division of credit administration.
+Added: Results and findings are reported to management’s problem asset resolution Committee and the Board of Directors Credit Review Committee.
+Added: When the ultimate collectability of a loan’s principal becomes doubtful, the loan is placed on nonaccrual.
+Added: The Company’s practice is to charge off estimated losses as soon as such loss is identified and reasonably quantified.
+Added: If the value of the collateral after consideration of disposition costs is less than the loan balance, a charge off is recorded to reduce the allowance for credit losses on loans.
Charge-offs reflect the realization of losses in the portfolio that were recognized previously through the provision for credit losses on loans.
−Removed: The Company’s practice is to charge off estimated losses as soon as management believes the uncollectability of a loan balance is confirmed and such losses are reasonably quantified.
−Removed: Net charge-offs for the first nine months of 2024 were $6,348, or 0.07% of average loans (annualized), compared to net charge-offs of $10,566, or 0.12% of average loans (annualized), for the same period in 2023.
−Removed: The charge-offs were fully reserved for in the Company’s allowance for credit losses on loans.
−Removed: Subsequent recoveries, if any, are credited to the allowance for credit losses on loans.
+Added: The Company generated net recoveries in the first quarter of 2025 of $125, compared to net charge-offs of $164, or 0.01% of average loans (annualized), for the same period in 2024.
+Added: All charge-offs were fully reserved for in the Company’s allowance for credit losses.
+Added: After collection efforts have been exhausted or a settlement agreement is reached with the borrower, underlying collateral is liquidated.
Allowance for Credit Losses on Loans;
14 unchanged sentences
The Company uses two CECL models:
−Removed: (1) for the Real Estate - 1-4 Family Mortgage, Real Estate - Construction and the Installment Loans to Individuals portfolio segments, the Company uses a loss rate model, based on average historical life-of-loan loss rates, and (2) for the Commercial, Real Estate - Commercial Mortgage and Lease Financing portfolio
−Removed: segments, the Company uses a probability of default/loss given default model, which calculates an expected loss percentage for each loan pool by considering (a) the probability of default, based on the migration of loans from performing (using risk ratings) to default using life-of-loan analysis periods, and (b) the historical severity of loss, based on the aggregate net lifetime losses incurred per loan pool.
+Added: (1) for the Real Estate - 1-4 Family Mortgage, Real Estate - Construction and the Installment Loans to Individuals portfolio segments, the Company uses a loss rate model, based on average historical life-of-loan loss rates, and (2) for the Commercial, Real Estate - Commercial Mortgage and Lease Financing portfolio segments, the Company uses a probability of default/loss given default model, which calculates an expected loss percentage for each loan pool by considering (a) the probability of default, based on the migration of loans from performing (using risk ratings) to default using life-of-loan analysis periods, and (b) the historical severity of loss, based on the aggregate net lifetime losses incurred per loan pool.
The historical loss rates calculated as described above are adjusted, as necessary, for both internal and external qualitative factors where there are differences in the historical loss data of the Company and current or projected future conditions.
15 unchanged sentences
The following table presents the allocation of the allowance for credit losses on loans by loan category and the percentage of loans in each category to total loans as of the dates presented:
−Removed: September 30, 2024 December 31, 2023 September 30, 2023
+Added: March 31, 2025 December 31, 2024 March 31, 2024
Balance % of Total Balance % of Total Balance % of Total
7 unchanged sentences
The provision for credit losses on loans charged to operating expense is an amount which, in the judgment of management, is necessary to maintain the allowance for credit losses on loans at a level that is believed to be adequate to meet the inherent risks of losses in our loan portfolio.
−Removed: The Company recorded a provision for credit losses on loans of $1,210 in the third quarter of 2024 and $8,148 in the first nine months of 2024, as compared to $5,315 in the third quarter of 2023 and $16,275 in the first nine months of 2023.
+Added: The Company recorded a provision for credit losses on loans of $2,050 in the first quarter of 2025, as compared to $2,638 in the first quarter of 2024.
The Company’s allowance for credit losses model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years.
−Removed: Loan growth as well as changes in credit metrics that influenced our expectations of future credit losses, considered in the context of the existing balance of the
−Removed: allowance for credit losses, resulted in the Company’s model indicating that the aforementioned provision for credit losses on loans was appropriate during the first nine months of 2024.
+Added: Loan growth as well as changes in credit metrics that influenced our expectations of future credit losses, considered in the context of the existing balance of the allowance for credit losses, resulted in the Company’s model indicating that the aforementioned provision for credit losses on loans was appropriate during the first quarter of 2025.
The table below reflects the activity in the allowance for credit losses on loans for the periods presented:
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2024 2023 2024 2023
+Added: Three Months Ended
Balance at beginning of period $ 201,756 $ 198,578
−Removed: Impact of purchased credit deteriorated loans acquired during the period — — — (26)
Commercial, financial, agricultural 94 349
−Removed: Lease financing 642 641 642 641
−Removed: Real estate – construction — — — 57
Real estate – 1-4 family mortgage 309 82
4 unchanged sentences
Lease financing 9 8
−Removed: Real estate – construction — 48 — 48
Real estate – 1-4 family mortgage 33 48
2 unchanged sentences
Total recoveries 1,254 746
−Removed: Net charge-offs 703 1,933 6,348 10,566
+Added: Net (recoveries) charge-offs (125) 164
Provision for credit losses on loans 2,050 2,638
7 unchanged sentences
The table below reflects annualized net charge-offs (recoveries) to daily average loans outstanding, by loan category, during the periods presented:
−Removed: Nine Months Ended
−Removed: September 30, 2024 September 30, 2023
−Removed: Net Charge-offs (Recoveries) Average Loans Annualized Net Charge-offs (Recoveries) to Average Loans Net Charge-offs (Recoveries) Average Loans Annualized Net Charge-offs to Average Loans
+Added: Three Months Ended
+Added: March 31, 2025 March 31, 2024
+Added: Net Charge-offs (Recoveries) Average Loans Annualized Net Charge-offs (Recoveries) to Average Loans Net Charge-offs (Recoveries) Average Loans Annualized Net Charge-offs (Recoveries) to Average Loans
Commercial, financial, agricultural $ (864) $ 1,896,477 (0.18)% $ 3 $ 1,864,444 —%
6 unchanged sentences
The following table provides further details of the Company’s net charge-offs (recoveries) of loans secured by real estate for the periods presented:
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, September 30,
−Removed: 2024 2023 2024 2023
−Removed: Real estate – construction:
−Removed: Residential $ — $ (48) $ — $ 9
−Removed: Total real estate – construction — (48) — 9
+Added: Three Months Ended
Real estate – 1-4 family mortgage:
16 unchanged sentences
A roll-forward of the allowance for credit losses on unfunded commitments is shown in the tables below.
−Removed: Three Months Ended September 30, 2024 2023
−Removed: Allowance for credit losses on unfunded loan commitments:
−Removed: Beginning balance $ 15,718 $ 17,618
−Removed: Recovery of provision for credit losses on unfunded loan commitments (275) (700)
−Removed: Ending balance $ 15,443 $ 16,918
−Removed: Nine Months Ended September 30, 2024 2023
+Added: Three Months Ended March 31, 2025 2024
Allowance for credit losses on unfunded loan commitments:
Beginning balance $ 14,943 $ 16,918
−Removed: Recovery of provision for credit losses on unfunded loan commitments (1,475) (3,200)
+Added: Provision for (recovery of) credit losses on unfunded loan commitments 2,700 (200)
Ending balance $ 17,643 $ 16,718
+Added: The increase in the provision for credit losses on unfunded commitments during the first quarter of 2025, as compared to the first quarter of 2024 was largely driven by an increase in real estate construction commitments.
Nonperforming Assets .
8 unchanged sentences
The following table provides details of the Company’s nonperforming assets as of the dates presented.
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Nonaccruing loans $ 98,638 $ 110,811
7 unchanged sentences
The following table presents nonperforming loans by loan category as of the dates presented:
−Removed: September 30,
−Removed: 2024 December 31, 2023 September 30,
+Added: 2025 December 31, 2024 March 31,
Commercial, financial, agricultural $ 1,879 $ 2,000 $ 6,588
2 unchanged sentences
Residential 3,216 1,223 —
+Added: Commercial — 16 —
Total real estate – construction 3,216 1,239 —
12 unchanged sentences
Total nonperforming loans $ 98,733 $ 113,275 $ 74,225
−Removed: Total nonperforming loans as a percentage of total loans were 0.94% as of September 30, 2024 as compared to 0.56% and 0.77% as of December 31, 2023 and September 30, 2023, respectively.
−Removed: The Company’s coverage ratio, or its allowance for credit losses on loans as a percentage of nonperforming loans, was 168.07% as of September 30, 2024 as compared to 286.26% as of December 31, 2023 and 282.24% as of September 30, 2023.
−Removed: The increase in nonperforming loans is due to a few larger loans, which management believes to be adequately reserved at September 30, 2024.
−Removed: Management has evaluated loans classified as nonperforming and believes that all nonperforming loans have been adequately reserved for in the allowance for credit losses at September 30, 2024.
+Added: Total nonperforming loans as a percentage of total loans were 0.76% as of March 31, 2025 as compared to 0.88% and 0.59% as of December 31, 2024 and March 31, 2024, respectively.
+Added: The Company’s coverage ratio, or its allowance for credit losses on loans as a percentage of nonperforming loans, was 206.55% as of March 31, 2025 as compared to 178.11% as of December 31, 2024 and 270.87% as of March 31, 2024.
+Added: Management has evaluated loans classified as nonperforming and believes that all nonperforming loans have been adequately reserved for in the allowance for credit losses at March 31, 2025.
Management also continually monitors past due loans for potential credit quality deterioration.
−Removed: Total loans 30-89 days past due but still accruing interest were $17,523, or 0.14% of total loans, at September 30, 2024 as compared to $54,031, or 0.44% of total loans, at December 31, 2023 and $13,641, or 0.11% of total loans, at September 30, 2023.
−Removed: Certain modifications of loans made to borrowers experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay (including an extension of the amortization period), or a term extension, excluding covenant waivers and modification of contingent acceleration clauses, are required to be disclosed in accordance with ASU 2022-02, “ Financial Instruments - Credit Losses (Topic326):
+Added: Total loans 30-89 days past due but still accruing interest were $40,188, or 0.31% of total loans, at March 31, 2025 as compared to $39,842, or 0.31% of total loans, at December 31, 2024 and $59,632, or 0.48% of total loans, at March 31, 2024.
+Added: Certain modifications of loans made to borrowers experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay (including an extension of the amortization period), or a term extension, but excluding covenant waivers and modification of contingent acceleration clauses, are required to be disclosed in accordance with ASU 2022-02, “ Financial Instruments - Credit Losses (Topic326):
Troubled Debt Restructurings and Vintage Disclosures ” (“ASU 2022-02”).
−Removed: All modifications for the nine months ended September 30, 2024 and 2023 and which met the disclosure criteria in ASU 2022-02 were performing in accordance with their modified terms at September 30, 2024 and 2023, respectively.
−Removed: The total amortized cost basis of loans that were experiencing financial difficulty, modified during the nine months ended September 30, 2024 and 2023, were $15,747 and $6,497, respectively.
−Removed: Unused commitments totaled $464 and $721 at September 30, 2024 and 2023, respectively.
−Removed: Upon the Company’s determination that a modified loan has been subsequently deemed uncollectible, the loan, or portion of the loan, is charged off, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted accordingly.
+Added: All modifications for the three months ended March 31, 2025 and 2024 and which met the disclosure criteria in ASU 2022-02 were performing in accordance with their modified terms at March 31, 2025 and 2024, respectively.
+Added: The total amortized cost basis of loans that were experiencing financial difficulty, modified during the three months ended March 31, 2025 and 2024, were $2,163 and $10,693, respectively.
+Added: There were no unused commitments at March 31, 2025, and unused commitments were $85 at March 31, 2024.
+Added: Upon the Company’s determination that a modified loan has subsequently become 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.
For more information about loan modifications made to borrowers experiencing financial difficulty, see the information under the heading “Certain Modifications to Borrowers Experiencing Financial Difficulty” in Note 3, “Loans,” in the Notes to Consolidated Financial Statements of the Company in Item 1, Financial Statements.
The following table provides details of the Company’s other real estate owned, net of valuation allowance and direct write-downs, as of the dates presented:
−Removed: September 30,
−Removed: 2024 December 31, 2023 September 30,
+Added: 2025 December 31, 2024 March 31,
Residential real estate $ 3,160 $ 2,966 $ 1,244
10 unchanged sentences
Balance at September 30 $ 8,654 $ 9,142
−Removed: Other real estate owned with a cost basis of $1,323 was sold during the nine months ended September 30, 2024, resulting in a net gain of $143, while other real estate owned with a cost basis of $2,544 was sold during the nine months ended September 30, 2023, resulting in a net gain of $289.
+Added: Other real estate owned with a cost basis of $744 was sold during the three months ended March 31, 2025, resulting in a net gain of $2, while other real estate owned with a cost basis of $119 was sold during the three months ended March 31, 2024, resulting in a net gain of $13.
Interest Rate Risk
16 unchanged sentences
An increase in EVE due to a specified rate change indicates an improvement in the long-term earnings capacity of the balance sheet assuming that the rate change remains in effect over the life of the current balance sheet.
−Removed: The following table presents the projected impact of a change in interest rates on (1) static EVE and (2) earnings at risk (that is, net interest income) for the 1-12 and 13-24 month periods commencing October 1, 2024, in each case as compared to the result under rates present in the market on September 30, 2024.
+Added: The following table presents the projected impact of a change in interest rates on (1) static EVE and (2) earnings at risk (that is, net interest income) for the 1-12 and 13-24 month periods commencing April 1, 2025, in each case as compared to the result under rates present in the market on March 31, 2025.
The changes in interest rates assume an instantaneous and parallel shift in the yield curve and do not account for changes in the slope of the yield curve.
6 unchanged sentences
-200 (8.01)% (6.99)% (10.80)%
−Removed: The rate shock results for the net interest income simulations for the next 24 months produce an asset sensitive position at September 30, 2024.
+Added: The rate shock results for the net interest income simulations for the next 24 months produce an asset sensitive position at March 31, 2025.
The preceding measures assume no change in the size or asset/liability compositions of the balance sheet, and they do not reflect future actions the ALCO may undertake in response to such changes in interest rates.
13 unchanged sentences
We may also access the brokered deposit market where rates are favorable to other sources of liquidity (especially in light of collateral requirements for certain borrowings) and core deposits are not sufficient for meeting our current and anticipated short- or long-term liquidity needs.
−Removed: During the first nine months of 2024, brokered deposits decreased by $334,713 as compared to the balance at December 31, 2023.
−Removed: The Bank obtained brokered deposits in the amount of $120,345 during the first nine months of 2024 and paid down brokered deposits of $455,058 during the same period.
+Added: We did not hold any brokered deposits at March 31, 2025 or December 31, 2024.
Management continually monitors the Bank’s liquidity and non-core dependency ratios to ensure compliance with targets established by the ALCO.
1 unchanged sentence
These assets generally have readily available markets that offer conversions to cash as needed.
−Removed: Within the next twelve months, the securities portfolio is forecasted to generate cash flow through principal payments and maturities equal to approximately 11.64% of the carrying value of the total securities portfolio.
+Added: Within the next twelve months and excluding the impact of securities acquired from The First, the securities portfolio is forecasted to generate cash flow through principal payments and maturities equal to approximately 11.38% of the carrying value of the total securities portfolio.
Securities within our investment portfolio are also used to secure certain deposit types, short-term borrowings and derivative instruments.
−Removed: At September 30, 2024, securities with a carrying value of $824,163 were pledged to secure government, public fund and trust deposits and as collateral for short-term borrowings and derivative instruments as compared to securities with a carrying value of $895,044 similarly pledged at December 31, 2023.
+Added: At March 31, 2025, securities with a carrying value of $888,004 were pledged to secure government, public fund and trust deposits and as collateral for short-term borrowings and derivative instruments as compared to securities with a carrying value of $843,870 similarly pledged at December 31, 2024.
Other sources available for meeting liquidity needs include federal funds purchased, short-term and long-term advances from the FHLB and borrowings from the Federal Reserve Discount Window.
Interest is charged at the prevailing market rate on federal funds purchased, FHLB advances and borrowings from the Federal Reserve Discount Window.
−Removed: There were $100,000 in short-term borrowings from the FHLB at September 30, 2024, as compared to $300,000 at December 31, 2023.
−Removed: Long-term funds obtained from the FHLB are used to match-fund fixed rate loans in order to minimize interest rate risk and also are used to meet day-to-day liquidity needs, particularly when the cost of such borrowing compares favorably to the rates that we would
−Removed: be required to pay to attract deposits.
−Removed: There were no outstanding long-term advances with the FHLB at September 30, 2024 or December 31, 2023.
−Removed: The total amount of the remaining credit available to us from the FHLB at September 30, 2024 was $3,449,164.
−Removed: The credit available at the Federal Reserve Discount Window at September 30, 2024 was $634,636 with no borrowings outstanding as of such date.
+Added: There were $100,000 in short-term borrowings from the FHLB at March 31, 2025 and December 31, 2024.
+Added: Long-term funds obtained from the FHLB are used to match-fund fixed rate loans in order to minimize interest rate risk and also are used to meet day-to-day liquidity needs, particularly when the cost of such borrowing compares favorably to the rates that we would be required to pay to attract deposits.
+Added: There were no outstanding long-term advances with the FHLB at March 31, 2025 or December 31, 2024.
+Added: amount of the remaining credit available to us from the FHLB at March 31, 2025 was $3,816,162.
+Added: The credit available at the Federal Reserve Discount Window at March 31, 2025 was $662,630 with no borrowings outstanding as of such date.
We also maintain lines of credit with other commercial banks totaling $150,000.
These are unsecured lines of credit with the majority maturing at various times within the next twelve months.
−Removed: There were no amounts outstanding under these lines of credit at September 30, 2024 or December 31, 2023.
+Added: There were no amounts outstanding under these lines of credit at March 31, 2025 or December 31, 2024.
Finally, we can access the capital markets to meet liquidity needs.
3 unchanged sentences
The proceeds of the sale of securities, if and when offered, will be used for general corporate purposes or as otherwise described in the prospectus supplement applicable to the offering and could include the expansion of the Company’s banking and wealth management operations as well as other business opportunities.
−Removed: Our common stock offering described under the “Recent Developments” heading above reflects our access of the capital markets as described in this paragraph.
+Added: Our common stock offering completed in July 2024 reflects our access of the capital markets as described in this paragraph.
In addition, in previous years, we have accessed the capital markets to generate liquidity in the form of subordinated notes.
We have also assumed subordinated notes as part of acquisitions.
−Removed: The carrying value of subordinated notes, net of unamortized debt issuance costs, was $319,496 at September 30, 2024.
+Added: The carrying value of subordinated notes, net of unamortized debt issuance costs, was $319,159 at March 31, 2025.
The following table presents, by type, the Company’s funding sources, which consist of total average deposits and borrowed funds, and the total cost of each funding source for the periods presented:
Percentage of Total Average Deposits and Borrowed Funds Cost of Funds
−Removed: Nine Months Ended Nine Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Three Months Ended
+Added: March 31, March 31,
2025 2024 2025 2024
8 unchanged sentences
Total deposits and borrowed funds 100.00 % 100.00 % 2.31 % 2.46 %
−Removed: The estimated amount of uninsured and uncollateralized deposits at September 30, 2024 was $4,574,707.
−Removed: Collateralized public funds over FDIC insurance limits were $1,804,840 at September 30, 2024.
+Added: The estimated amount of uninsured and uncollateralized deposits at March 31, 2025 was $4,676,719.
+Added: Collateralized public funds over FDIC insurance limits were $1,941,187 at March 31, 2025.
Our strategy in choosing funds is focused on minimizing cost in the context of our balance sheet composition, interest rate risk position and liquidity forecast.
2 unchanged sentences
We constantly monitor our funds position and evaluate the effect that various funding sources have on our financial position.
−Removed: Cash and cash equivalents were $1,275,620 at September 30, 2024, as compared to $741,156 at September 30, 2023.
−Removed: The increase is largely driven by growth in deposits and proceeds from the aforementioned common stock offering offset to some degree by the payoff of certain short-term borrowings.
−Removed: Cash provided by investing activities for the nine months ended September 30, 2024 was $25,572, as compared to cash provided by investing activities of $89,172 for the nine months ended September 30, 2023.
−Removed: Proceeds from the sale, maturity or call of securities within our investment portfolio were $319,665 for the nine months ended September 30, 2024, as compared to $697,076 for the same period in 2023.
+Added: Cash and cash equivalents were $1,091,339 at March 31, 2025, as compared to $844,400 at March 31, 2024.
+Added: The increase is largely driven by growth in deposits and proceeds from the common stock offering in July 2024 offset to some degree by the payoff of certain short-term borrowings.
+Added: Cash used in investing activities for the three months ended March 31, 2025 was $292,055, as compared to cash provided by investing activities of $29,968 for the three months ended March 31, 2024.
+Added: Proceeds from the sale, maturity or call of securities within our investment portfolio were $56,789 for the three months ended March 31, 2025, as compared to $223,492 for the same period in 2024.
+Added: No securities were sold during the first quarter of 2025.
A portion of the securities portfolio was sold during the first quarter of 2024, resulting in proceeds of $177,185 of which a portion were used to purchase higher yielding securities, while the remainder was used to fund loan growth.
−Removed: A portion of the securities portfolio was sold during the second quarter of 2023, resulting in proceeds of $488,981
−Removed: which were used to pay off short-term FHLB borrowings and to fund loan growth.
−Removed: Purchases of investment securities were $60,656 during the first nine months of 2024 and $9,646 for the same period in 2023.
−Removed: Cash provided by financing activities for the nine months ended September 30, 2024 was $411,366, as compared to cash provided by financing activities of $27,868 for the same period in 2023.
−Removed: Deposits increased $432,966 and $670,144 for the nine months ended September 30, 2024 and 2023, respectively.
+Added: Purchases of investment securities were $175,815 during the first three months of 2025 and $46,975 for the same period in 2024.
+Added: Cash provided by financing activities for the three months ended March 31, 2025 was $185,210, as compared to cash used in financing activities of $51,976 for the same period in 2024.
+Added: Deposits increased $199,483 and $160,378 for the three months ended March 31, 2025 and 2024, respectively.
Restrictions on Bank Dividends, Loans and Advances
5 unchanged sentences
Federal Reserve regulations also limit the amount the Bank may loan to the Company unless such loans are collateralized by specific obligations.
−Removed: At September 30, 2024, the maximum amount available for transfer from the Bank to the Company in the form of loans was $198,943.
+Added: At March 31, 2025, the maximum amount available for transfer from the Bank to the Company in the form of loans was $203,836.
The Company maintains a $3,000 line of credit collateralized by cash with the Bank.
−Removed: There were no amounts outstanding under this line of credit at September 30, 2024.
−Removed: These restrictions did not have any impact on the Company’s ability to meet its cash obligations in the nine months ended September 30, 2024, nor does management expect such restrictions to materially impact the Company’s ability to meet its currently-anticipated cash obligations.
+Added: There were no amounts outstanding under this line of credit at March 31, 2025.
+Added: These restrictions did not have any impact on the Company’s ability to meet its cash obligations in the three months ended March 31, 2025, nor does management expect such restrictions to materially impact the Company’s ability to meet its currently-anticipated cash obligations.
Loan Commitments and Other Off-Balance Sheet Arrangements
6 unchanged sentences
The Company’s unfunded loan commitments and standby letters of credit outstanding were as follows as of the dates presented:
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Loan commitments $ 3,315,189 $ 2,856,308
8 unchanged sentences
The Company manages its credit risk, or potential risk of default by its commercial customers, through credit limit approval and monitoring procedures.
−Removed: At September 30, 2024, the Company had notional amounts of $830,409 on interest rate contracts with corporate customers and
−Removed: $833,761 in offsetting interest rate contracts with other financial institutions to mitigate the Company’s rate exposure on its corporate customers’ contracts and certain fixed rate loans.
+Added: At March 31, 2025, the Company had notional amounts of $910,697 on interest rate contracts with corporate customers and $911,021 in offsetting interest rate contracts with other financial institutions to mitigate the Company’s rate exposure on its corporate customers’ contracts and certain fixed rate loans.
Additionally, the Company enters into interest rate lock commitments with its customers to mitigate the interest rate risk associated with the commitments to fund fixed-rate and adjustable rate residential mortgage loans and also enters into forward commitments to sell residential mortgage loans to secondary market investors.
8 unchanged sentences
Shareholders’ Equity and Regulatory Matters
−Removed: Total shareholders’ equity of the Company was $2,658,078 at September 30, 2024 compared to $2,297,383 at December 31, 2023.
−Removed: Book value per share was $41.82 and $40.92 at September 30, 2024 and December 31, 2023, respectively.
−Removed: The growth in shareholders’ equity was attributable to the previously mentioned common stock offering, current period earnings and declines in accumulated other comprehensive loss, offset by dividends declared.
−Removed: In October 2023, the Company’s Board of Directors approved a stock repurchase program, authorizing the Company to repurchase up to $100,000 of its outstanding common stock.
−Removed: This program expired in October 2024 and was replaced with a new stock repurchase program authorizing the Company to repurchase up to $100,000 of its outstanding common stock, either in open market purchases or privately-negotiated transactions.
−Removed: The new repurchase program will remain in effect through October 2025 or, if earlier, the repurchase of the entire amount of common stock authorized to be repurchased.
−Removed: The Company did not repurchase any of its common stock under the previous stock repurchase program in the first nine months of 2024.
−Removed: The Company has junior subordinated debentures with a carrying value of $113,681 at September 30, 2024, of which $110,090 is included in the Company’s Tier 1 capital.
−Removed: Federal Reserve guidelines limit the amount of securities that, similar to our junior subordinated debentures, are includable in Tier 1 capital, but these guidelines did not impact the debentures we include in Tier 1 capital at September 30, 2024.
−Removed: Although our existing junior subordinated debentures are currently unaffected by these Federal Reserve guidelines, on account of changes enacted as part of the Dodd-Frank Act, any new trust preferred securities are not includable in Tier 1 capital.
−Removed: Further, if we complete the proposed merger with The First (or we make any other acquisition of a financial institution) now that we have exceeded $15,000,000 in assets, we will lose Tier 1 treatment of our junior subordinated debentures.
−Removed: The Company has subordinated notes with a par value of $336,400 at September 30, 2024, of which $333,844 is included in the Company’s Tier 2 capital.
+Added: Total shareholders’ equity of the Company was $2,727,105 at March 31, 2025 compared to $2,678,318 at December 31, 2024.
+Added: Book value per share was $42.79 and $42.13 at March 31, 2025 and December 31, 2024, respectively.
+Added: The growth in shareholders’ equity was attributable to current period earnings and declines in accumulated other comprehensive loss, offset by dividends declared.
+Added: In October 2024, the Company’s Board of Directors approved a stock repurchase program, authorizing the Company to repurchase up to $100,000 of its outstanding common stock, either in open market purchases or privately-negotiated transactions.
+Added: The program will remain in effect through October 2025 or, if earlier, the repurchase of the entire amount of common stock authorized to be repurchased.
+Added: The Company did not repurchase any of its common stock in the first quarter of 2025.
+Added: The Company has junior subordinated debentures with a carrying value of $114,150 at March 31, 2025, of which $110,559 was included in the Company’s Tier 1 capital as of such date.
+Added: In light of the Company’s completion of its merger with The First on April 1, 2025, all of the Company’s junior subordinated debentures are now included in Tier 2 capital, as required under Federal Reserve guidelines.
+Added: The Company has subordinated notes with a par value of $336,400 at March 31, 2025, of which $334,290 is included in the Company’s Tier 2 capital.
The Federal Reserve, the FDIC and the Office of the Comptroller of the Currency have issued guidelines governing the levels of capital that bank holding companies and banks must maintain.
12 unchanged sentences
Critically undercapitalized Tangible Equity / Total Assets less than 2%
−Removed: The following table provides the capital and risk-based capital and leverage ratios for the Company and for Renasant Bank as of the dates presented:
+Added: The following table provides the capital, risk-based capital and leverage ratios for the Company and for Renasant Bank as of the dates presented:
Actual Minimum Capital
4 unchanged sentences
Amount Ratio Amount Ratio Amount Ratio
−Removed: September 30, 2024
+Added: March 31, 2025
Renasant Corporation:
29 unchanged sentences
The three-year transitional period began on January 1, 2022;
+Added: the impact of CECL is reflected in our capital ratios as of March 31, 2025.
For more information regarding the capital adequacy guidelines applicable to the Company and Renasant Bank, please refer to Note 13, “Regulatory Matters,” in the Notes to the Consolidated Financial Statements of the Company in Item 1, Financial Statements.
10 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.