~~0000715072rnst:AccruingLoansMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialRealEstateMemberrnst:LoanPortfolioPurchasedMember2021-09-30~~0000715072us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberrnst:RealEstateOneToFourFamilyMortgageMemberrnst:AccruingLoansMemberrnst:CommercialLandDevelopmentMemberrnst:LoanPortfolioPurchasedMember2022-03-31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________________

FORM 10-Q

________________________________________________________

(Mark One)


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended ~~September 30, 2021~~March 31, 2022


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number: 001-13253

________________________________________________________

RENASANT CORPORATION

(Exact name of registrant as specified in its charter)

________________________________________________________


Mississippi						64-0676974
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)

209 Troy Street,

Tupelo,

Mississippi

38804-4827

(Address of principal executive offices)

(Zip Code)

(662) 680-1001

(Registrant’s telephone number, including area code)

________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $5.00 par value per share	RNST	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Table of Contents

As of ~~October~~April 29, ~~2021, 55,747,407~~2022, 55,900,096 shares of the registrant’s common stock, $5.00 par value per share, were outstanding.

Table of Contents

Renasant Corporation and Subsidiaries

Form 10-Q

For the Quarterly Period Ended ~~September 30, 2021~~March 31, 2022

CONTENTS

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

Renasant Corporation and Subsidiaries

Consolidated Balance Sheets

(In Thousands, Except Share Data)


		(Unaudited)					(Unaudited)
		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Assets	Assets					Assets
Cash and due from banks	Cash and due from banks	$	169,474	$	176,372	Cash and due from banks	$	230,947	$	182,710
Interest-bearing balances with banks	Interest-bearing balances with banks	1,306,667		456,831		Interest-bearing balances with banks	1,376,546		1,695,255
Cash and cash equivalents	Cash and cash equivalents	1,476,141		633,203		Cash and cash equivalents	1,607,493		1,877,965

Securities held to maturity (net of allowance for credit losses of $32 at each of March 31, 2022 and December 31, 2021) (fair value of $449,541 and $415,552, respectively)						Securities held to maturity (net of allowance for credit losses of $32 at each of March 31, 2022 and December 31, 2021) (fair value of $449,541 and $415,552, respectively)	487,194		416,357
Securities available for sale, at fair value	Securities available for sale, at fair value	2,544,643		1,343,457		Securities available for sale, at fair value	2,405,316		2,386,052
Loans held for sale, at fair value	Loans held for sale, at fair value	452,869		417,771		Loans held for sale, at fair value	280,464		453,533
Loans, net of unearned income:	Loans, net of unearned income:					Loans, net of unearned income:
Non purchased loans and leases	Non purchased loans and leases	8,875,880		9,419,540		Non purchased loans and leases	9,338,890		9,011,011
Purchased loans	Purchased loans	1,140,944		1,514,107		Purchased loans	974,569		1,009,903
Total loans, net of unearned income	Total loans, net of unearned income	10,016,824		10,933,647		Total loans, net of unearned income	10,313,459		10,020,914
Allowance for credit losses	Allowance for credit losses	(170,038)		(176,144)		Allowance for credit losses	(166,468)		(164,171)
Loans, net	Loans, net	9,846,786		10,757,503		Loans, net	10,146,991		9,856,743
Premises and equipment, net	Premises and equipment, net	294,499		300,496		Premises and equipment, net	285,344		293,122
Other real estate owned:	Other real estate owned:					Other real estate owned:
Non purchased	Non purchased	2,252		2,045		Non purchased	531		951
Purchased	Purchased	2,453		3,927		Purchased	1,531		1,589
Total other real estate owned, net	Total other real estate owned, net	4,705		5,972		Total other real estate owned, net	2,062		2,540
Goodwill	Goodwill	939,683		939,683		Goodwill	946,291		939,683
Other intangible assets, net	Other intangible assets, net	25,522		30,139		Other intangible assets, net	22,731		24,098
Bank-owned life insurance	Bank-owned life insurance	286,088		230,609		Bank-owned life insurance	369,344		287,359
Mortgage servicing rights	Mortgage servicing rights	86,387		62,994		Mortgage servicing rights	91,730		89,018
Other assets	Other assets	198,227		207,785		Other assets	218,797		183,841
Total assets	Total assets	$	16,155,550	$	14,929,612	Total assets	$	16,863,757	$	16,810,311
Liabilities and shareholders’ equity	Liabilities and shareholders’ equity					Liabilities and shareholders’ equity
Liabilities	Liabilities					Liabilities
Deposits	Deposits					Deposits
Noninterest-bearing	Noninterest-bearing	$	4,492,650	$	3,685,048	Noninterest-bearing	$	4,706,256	$	4,718,124
Interest-bearing	Interest-bearing	8,762,179		8,374,033		Interest-bearing	9,284,641		9,187,600
Total deposits	Total deposits	13,254,829		12,059,081		Total deposits	13,990,897		13,905,724
Short-term borrowings	Short-term borrowings	11,253		21,340		Short-term borrowings	111,279		13,947
Long-term debt	Long-term debt	468,863		474,970		Long-term debt	435,416		471,209
Other liabilities	Other liabilities	216,661		241,488		Other liabilities	188,523		209,578
Total liabilities	Total liabilities	13,951,606		12,796,879		Total liabilities	14,726,115		14,600,458
Shareholders’ equity	Shareholders’ equity					Shareholders’ equity
Preferred stock, $0.01 par value – 5,000,000 shares authorized; no shares issued and outstanding	Preferred stock, $0.01 par value – 5,000,000 shares authorized; no shares issued and outstanding	—		—		Preferred stock, $0.01 par value – 5,000,000 shares authorized; no shares issued and outstanding	—		—
Common stock, $5.00 par value – 150,000,000 shares authorized; 59,296,725 shares issued; 55,747,407 and 56,200,487 shares outstanding, respectively		296,483		296,483
Treasury stock, at cost – 3,549,318 and 3,096,238 shares, respectively		(118,288)		(101,554)
Common stock, $5.00 par value – 150,000,000 shares authorized; 59,296,725 shares issued; 55,880,666 and 55,756,233 shares outstanding, respectively						Common stock, $5.00 par value – 150,000,000 shares authorized; 59,296,725 shares issued; 55,880,666 and 55,756,233 shares outstanding, respectively	296,483		296,483
Treasury stock, at cost – 3,416,059 and 3,540,492 shares, respectively						Treasury stock, at cost – 3,416,059 and 3,540,492 shares, respectively	(114,050)		(118,027)
Additional paid-in capital	Additional paid-in capital	1,298,022		1,296,963		Additional paid-in capital	1,297,088		1,300,192
Retained earnings	Retained earnings	717,033		615,773		Retained earnings	762,690		741,648
Accumulated other comprehensive income, net of taxes		10,694		25,068
Accumulated other comprehensive loss, net of taxes						Accumulated other comprehensive loss, net of taxes	(104,569)		(10,443)
Total shareholders’ equity	Total shareholders’ equity	2,203,944		2,132,733		Total shareholders’ equity	2,137,642		2,209,853
Total liabilities and shareholders’ equity	Total liabilities and shareholders’ equity	$	16,155,550	$	14,929,612	Total liabilities and shareholders’ equity	$	16,863,757	$	16,810,311

See Notes to Consolidated Financial Statements.

Table of Contents

Renasant Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(In Thousands, Except Share Data)


		Three Months Ended				Nine Months Ended					Three Months Ended
		September 30,				September 30,					March 31,
		2021		2020		2021		2020				2022		2021
Interest income	Interest income									Interest income
Loans	Loans	$	105,004	$	114,914	$	333,334	$	351,192	Loans		$	98,692	$	115,005
Securities	Securities									Securities
Taxable	Taxable	6,749		5,499		17,285		19,219		Taxable		8,934		4,917
Tax-exempt	Tax-exempt	1,667		1,573		5,025		4,697		Tax-exempt		1,901		1,657
Other	Other	593		92		1,122		1,098		Other		664		183
Total interest income	Total interest income	114,013		122,078		356,766		376,206		Total interest income		110,191		121,762
Interest expense	Interest expense									Interest expense
Deposits	Deposits	6,972		11,810		22,920		44,175		Deposits		5,637		8,279
Borrowings	Borrowings	3,749		3,982		11,327		13,361		Borrowings		4,925		3,835
Total interest expense	Total interest expense	10,721		15,792		34,247		57,536		Total interest expense		10,562		12,114
Net interest income	Net interest income	103,292		106,286		322,519		318,670		Net interest income		99,629		109,648
(Recovery of) provision for loan losses		(1,200)		23,100		(1,200)		76,350
Provision for other credit losses		—		—		—		—
(Recovery of) provision for credit losses		(1,200)		23,100		(1,200)		76,350
Provision for credit losses on loans										Provision for credit losses on loans		1,500		—

Provision for credit losses										Provision for credit losses		1,500		—
Net interest income after provision for credit losses	Net interest income after provision for credit losses	104,492		83,186		323,719		242,320		Net interest income after provision for credit losses		98,129		109,648
Noninterest income	Noninterest income									Noninterest income
Service charges on deposit accounts	Service charges on deposit accounts	9,337		7,486		26,818		23,388		Service charges on deposit accounts		9,562		8,023
Fees and commissions	Fees and commissions	3,837		3,402		11,847		9,427		Fees and commissions		3,982		3,900
Insurance commissions	Insurance commissions	2,829		2,681		7,488		6,797		Insurance commissions		2,554		2,237
Wealth management revenue	Wealth management revenue	5,371		4,364		15,182		12,190		Wealth management revenue		5,924		4,792
Mortgage banking income	Mortgage banking income	23,292		49,714		94,878		110,739		Mortgage banking income		9,633		50,733
Net gain on sales of securities	Net gain on sales of securities	764		—		2,121		31		Net gain on sales of securities		—		1,357
BOLI income	BOLI income	1,602		1,267		5,318		3,759		BOLI income		2,153		2,072

Other	Other	3,723		2,014		15,750		6,337		Other		3,650		7,923
Total noninterest income	Total noninterest income	50,755		70,928		179,402		172,668		Total noninterest income		37,458		81,037
Noninterest expense	Noninterest expense									Noninterest expense
Salaries and employee benefits	Salaries and employee benefits	69,115		75,406		218,104		227,956		Salaries and employee benefits		62,239		78,696
Data processing	Data processing	5,277		5,259		16,380		15,312		Data processing		4,263		5,451
Net occupancy and equipment	Net occupancy and equipment	11,748		13,296		35,660		40,927		Net occupancy and equipment		11,276		12,538
Other real estate owned	Other real estate owned	168		1,033		313		2,071		Other real estate owned		(241)		41
Professional fees	Professional fees	2,972		3,197		8,566		8,355		Professional fees		3,151		2,921
Advertising and public relations	Advertising and public relations	2,922		2,240		9,274		8,560		Advertising and public relations		4,059		3,252
Intangible amortization	Intangible amortization	1,481		1,733		4,618		5,462		Intangible amortization		1,366		1,598
Communications	Communications	2,198		2,319		6,781		6,698		Communications		2,027		2,292
Merger and conversion related expenses										Merger and conversion related expenses		687		—
Restructuring (benefit) charges										Restructuring (benefit) charges		(455)		292

Restructuring charges		—		—		307		—

Debt prepayment penalty		—		28		—		118
Other	Other	8,118		11,999		28,708		34,377		Other		5,733		8,854
Total noninterest expense	Total noninterest expense	103,999		116,510		328,711		349,836		Total noninterest expense		94,105		115,935
Income before income taxes	Income before income taxes	51,248		37,604		174,410		65,152		Income before income taxes		41,482		74,750
Income taxes	Income taxes	11,185		7,612		35,572		13,022		Income taxes		7,935		16,842
Net income	Net income	$	40,063	$	29,992	$	138,838	$	52,130	Net income		$	33,547	$	57,908

Basic earnings per share	Basic earnings per share	$	0.71	$	0.53	$	2.47	$	0.93	Basic earnings per share		$	0.60	$	1.03
Diluted earnings per share	Diluted earnings per share	$	0.71	$	0.53	$	2.46	$	0.92	Diluted earnings per share		$	0.60	$	1.02
Cash dividends per common share	Cash dividends per common share	$	0.22	$	0.22	$	0.66	$	0.66	Cash dividends per common share		$	0.22	$	0.22

See Notes to Consolidated Financial Statements.

Table of Contents

Renasant Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

(In Thousands)


		Three Months Ended				Nine Months Ended					Three Months Ended
		September 30,				September 30,					March 31,
		2021		2020		2021		2020				2022		2021
Net income	Net income	$	40,063	$	29,992	$	138,838	$	52,130	Net income		$	33,547	$	57,908
Other comprehensive income, net of tax:
Other comprehensive (loss) income, net of tax:										Other comprehensive (loss) income, net of tax:
Securities available for sale:	Securities available for sale:									Securities available for sale:
Unrealized holding (losses) gains on securities		(9,250)		388		(20,491)		19,685
Unrealized holding losses on securities										Unrealized holding losses on securities		(100,462)		(14,943)
Reclassification adjustment for gains realized in net income	Reclassification adjustment for gains realized in net income	(570)		—		(1,582)		(23)		Reclassification adjustment for gains realized in net income		—		(1,012)

Amortization of unrealized holding gains on securities transferred to the held to maturity category										Amortization of unrealized holding gains on securities transferred to the held to maturity category		(74)		—
Total securities available for sale	Total securities available for sale	(9,820)		388		(22,073)		19,662		Total securities available for sale		(100,536)		(15,955)
Derivative instruments:	Derivative instruments:									Derivative instruments:
Unrealized holding gains (losses) on derivative instruments		1,215		1,175		7,551		(2,621)
Unrealized holding gains on derivative instruments										Unrealized holding gains on derivative instruments		6,379		10,984

Total derivative instruments	Total derivative instruments	1,215		1,175		7,551		(2,621)		Total derivative instruments		6,379		10,984
Defined benefit pension and post-retirement benefit plans:	Defined benefit pension and post-retirement benefit plans:									Defined benefit pension and post-retirement benefit plans:

Amortization of net actuarial loss recognized in net periodic pension cost	Amortization of net actuarial loss recognized in net periodic pension cost	49		48		148		145		Amortization of net actuarial loss recognized in net periodic pension cost		31		42
Total defined benefit pension and post-retirement benefit plans	Total defined benefit pension and post-retirement benefit plans	49		48		148		145		Total defined benefit pension and post-retirement benefit plans		31		42
Other comprehensive (loss) income, net of tax		(8,556)		1,611		(14,374)		17,186
Comprehensive income		$	31,507	$	31,603	$	124,464	$	69,316
Other comprehensive loss, net of tax										Other comprehensive loss, net of tax		(94,126)		(4,929)
Comprehensive (loss) income										Comprehensive (loss) income		$	(60,579)	$	52,979

See Notes to Consolidated Financial Statements.

Table of Contents

Renasant Corporation and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

(Unaudited)

(In Thousands, Except Share Data)


		Common Stock			Treasury Stock				Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)				Total			Common Stock						Treasury Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Nine Months Ended September 30, 2021		Shares	Amount
Balance at January 1, 2021		56,200,487	$	296,483			$	(101,554)			$	1,296,963			$	615,773					$	25,068		$	2,132,733
Three Months Ended March 31, 2022																			Three Months Ended March 31, 2022	Shares			Amount			Treasury Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balance at January 1, 2022																			Balance at January 1, 2022	55,756,233			$	296,483

Net income	Net income	—	—		—				—		57,908		—				57,908		Net income	—			—					—			—			33,547			—			33,547
Other comprehensive loss	Other comprehensive loss	—	—		—				—		—		(4,929)				(4,929)		Other comprehensive loss	—			—			—			—			—			(94,126)			(94,126)
Comprehensive income																	52,979
Comprehensive loss																			Comprehensive loss																			(60,579)
Cash dividends ($0.22 per share)	Cash dividends ($0.22 per share)	—	—		—				—		(12,564)		—				(12,564)		Cash dividends ($0.22 per share)	—			—			—			—			(12,505)			—			(12,505)

Issuance of common stock for stock-based compensation awards	Issuance of common stock for stock-based compensation awards	93,859	—		2,605				(4,808)		—		—				(2,203)		Issuance of common stock for stock-based compensation awards	124,433			—			3,977			(6,442)			—			—			(2,465)
Stock-based compensation expense	Stock-based compensation expense	—	—		—				2,756		—		—				2,756		Stock-based compensation expense	—			—			—			3,338			—			—			3,338

Balance at March 31, 2021		56,294,346	$	296,483	$	(98,949)			$	1,294,911	$	661,117	$	20,139			$	2,173,701
Net income		—	—		—				—		40,867		—				40,867
Other comprehensive loss		—	—		—				—		—		(889)				(889)
Comprehensive income																	39,978
Cash dividends ($0.22 per share)		—	—		—				—		(12,540)		—				(12,540)
Balance at March 31, 2022																			Balance at March 31, 2022	55,880,666			$	296,483		$	(114,050)		$	1,297,088		$	762,690		$	(104,569)		$	2,137,642

Issuance of common stock for stock-based compensation awards		56,532	—		1,700				(1,417)		—		—				283
Stock-based compensation expense		—	—		—				2,385		—		—				2,385

Balance at June 30, 2021		56,350,878	$	296,483	$	(97,249)			$	1,295,879	$	689,444	$	19,250			$	2,203,807
Net income		—	—		—				—		40,063		—				40,063
Other comprehensive loss		—	—		—				—		—		(8,556)				(8,556)
Comprehensive income																	31,507
Cash dividends ($0.22 per share)		—	—		—				—		(12,474)		—				(12,474)
Repurchase of shares in connection with stock repurchase program		(612,107)	—		(21,314)				—		—		—				(21,314)

Issuance of common stock for stock-based compensation awards		8,636	—		275				(451)		—		—				(176)
Stock-based compensation expense		—	—		—				2,594		—		—				2,594

Balance at September 30, 2021		55,747,407	$	296,483	$	(118,288)			$	1,298,022	$	717,033	$	10,694			$	2,203,944

~~Table of Contents~~


		Common Stock			Treasury Stock				Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income				Total			Common Stock						Treasury Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income			Total
Nine Months Ended September 30, 2020		Shares	Amount
Balance at January 1, 2020		56,855,002	$	296,483			$	(83,189)			$	1,294,276			$	617,355					$	764		$	2,125,689
Cumulative effect adjustment due to the adoption of ASU 2016-13		—	—		—				—		(35,099)		—				(35,099)
Three Months Ended March 31, 2021																			Three Months Ended March 31, 2021	Shares			Amount			Treasury Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income			Total
Balance at January 1, 2021																			Balance at January 1, 2021	56,200,487			$	296,483

Net income	Net income	—	—		—				—		2,008		—				2,008		Net income	—			—					—			—			57,908			—			57,908
Other comprehensive income		—	—		—				—		—		13,737				13,737
Comprehensive income																	15,745
Cash dividends ($0.22 per share)		—	—		—				—		(12,555)		—				(12,555)
Repurchase of shares in connection with stock repurchase program		(818,886)	—		(24,569)				—		—		—				(24,569)

Issuance of common stock for stock-based compensation awards		104,902	—		4,138				(5,587)		—		—				(1,449)
Stock-based compensation expense		—	—		—				2,750		—		—				2,750

Balance at March 31, 2020		56,141,018	$	296,483	$	(103,620)			$	1,291,439	$	571,709	$	14,501			$	2,070,512
Net income		—	—		—				—		20,130		—				20,130
Other comprehensive income		—	—		—				—		—		1,838				1,838
Other comprehensive loss																			Other comprehensive loss	—			—			—			—			—			(4,929)			(4,929)
Comprehensive income	Comprehensive income																21,968		Comprehensive income																			52,979
Cash dividends ($0.22 per share)	Cash dividends ($0.22 per share)	—	—		—				—		(12,525)		—				(12,525)		Cash dividends ($0.22 per share)	—			—			—			—			(12,564)			—			(12,564)

Issuance of common stock for stock-based compensation awards	Issuance of common stock for stock-based compensation awards	40,944	—		1,397				(1,404)		—		—				(7)		Issuance of common stock for stock-based compensation awards	93,859			—			2,605			(4,808)			—			—			(2,203)
Stock-based compensation expense	Stock-based compensation expense	—	—		—				2,998		—		—				2,998		Stock-based compensation expense	—			—			—			2,756			—			—			2,756

Balance at June 30, 2020		56,181,962	$	296,483	$	(102,223)			$	1,293,033	$	579,314	$	16,339			$	2,082,946
Net income		—	—		—				—		29,992		—				29,992
Other comprehensive income		—	—		—				—		—		1,611				1,611
Comprehensive income																	31,603
Cash dividends ($0.22 per share)		—	—		—				—		(12,527)		—				(12,527)
Balance at March 31, 2021																			Balance at March 31, 2021	56,294,346			$	296,483		$	(98,949)		$	1,294,911		$	661,117		$	20,139		$	2,173,701

Issuance of common stock for stock-based compensation awards		11,743	—		423				(550)		—		—				(127)
Stock-based compensation expense		—	—		—				2,405		—		—				2,405

Balance at September 30, 2020		56,193,705	$	296,483	$	(101,800)			$	1,294,888	$	596,779	$	17,950			$	2,104,300

See Notes to Consolidated Financial Statements.

Table of Contents

Renasant Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(In Thousands)


		Nine Months Ended September 30,					Three Months Ended March 31,
		2021		2020			2022		2021
Operating activities	Operating activities					Operating activities
Net income	Net income	$	138,838	$	52,130	Net income	$	33,547	$	57,908
Adjustments to reconcile net income to net cash provided by operating activities:
(Recovery of) provision for credit losses		(1,200)		76,350
Adjustments to reconcile net income to net cash provided by (used in) operating activities:						Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for credit losses						Provision for credit losses	1,500		—
Depreciation, amortization and accretion	Depreciation, amortization and accretion	34,421		22,727		Depreciation, amortization and accretion	12,804		10,059
Deferred income tax expense (benefit)		5,071		(8,494)
Deferred income tax expense						Deferred income tax expense	4,649		5,542
Funding of mortgage loans held for sale	Funding of mortgage loans held for sale	(3,189,474)		(3,277,576)		Funding of mortgage loans held for sale	(595,046)		(1,143,349)
Proceeds from sales of mortgage loans held for sale	Proceeds from sales of mortgage loans held for sale	3,230,039		3,310,402		Proceeds from sales of mortgage loans held for sale	769,797		1,082,538
Gains on sales of mortgage loans held for sale	Gains on sales of mortgage loans held for sale	(71,598)		(114,327)		Gains on sales of mortgage loans held for sale	(6,047)		(33,901)
Valuation adjustment to mortgage servicing rights	Valuation adjustment to mortgage servicing rights	(13,561)		13,694		Valuation adjustment to mortgage servicing rights	—		(13,561)
Gains on sales of securities	Gains on sales of securities	(2,121)		(31)		Gains on sales of securities	—		(1,357)
Penalty on prepayment of debt		—		118
(Gains) losses on sales of premises and equipment		(519)		35

Gains on sales of premises and equipment						Gains on sales of premises and equipment	(3)		(22)
Stock-based compensation expense	Stock-based compensation expense	7,736		8,153		Stock-based compensation expense	3,338		2,756

Increase in other assets		(16,429)		(87,405)
(Decrease) increase in other liabilities		(31,032)		48,269
Net cash provided by operating activities		90,171		44,045
Increase (decrease) in other assets						Increase (decrease) in other assets	5,746		(11,800)
Decrease in other liabilities						Decrease in other liabilities	(24,469)		(11,601)
Net cash provided by (used in) operating activities						Net cash provided by (used in) operating activities	205,816		(56,788)
Investing activities	Investing activities					Investing activities
Purchases of securities available for sale	Purchases of securities available for sale	(1,743,105)		(304,955)		Purchases of securities available for sale	(285,635)		(465,245)
Proceeds from sales of securities available for sale	Proceeds from sales of securities available for sale	176,406		8,773		Proceeds from sales of securities available for sale	—		155,391
Proceeds from call/maturities of securities available for sale	Proceeds from call/maturities of securities available for sale	329,520		314,363		Proceeds from call/maturities of securities available for sale	128,155		95,382
Purchases of securities held to maturity						Purchases of securities held to maturity	(79,434)		—

Net decrease (increase) in loans		917,343		(1,383,382)
Proceeds from call/maturities of securities held to maturity						Proceeds from call/maturities of securities held to maturity	7,620		—
Net (increase) decrease in loans						Net (increase) decrease in loans	(264,251)		243,250
Purchases of premises and equipment	Purchases of premises and equipment	(16,797)		(6,824)		Purchases of premises and equipment	(2,030)		(2,630)
Proceeds from sales of premises and equipment	Proceeds from sales of premises and equipment	8,715		—		Proceeds from sales of premises and equipment	100		34
Purchase of bank-owned life insurance	Purchase of bank-owned life insurance	(50,000)		—		Purchase of bank-owned life insurance	(80,000)		—
Net change in FHLB stock	Net change in FHLB stock	(1,226)		10,607		Net change in FHLB stock	(422)		(24)
Proceeds from sales of other assets	Proceeds from sales of other assets	4,081		6,020		Proceeds from sales of other assets	956		1,962
Net cash paid in acquisition of businesses						Net cash paid in acquisition of businesses	(10,066)		—
Other, net						Other, net	207		1,346
Net cash (used in) provided by investing activities						Net cash (used in) provided by investing activities	(584,800)		29,466
Financing activities						Financing activities
Net (decrease) increase in noninterest-bearing deposits						Net (decrease) increase in noninterest-bearing deposits	(11,868)		450,312
Net increase in interest-bearing deposits						Net increase in interest-bearing deposits	97,041		227,515
Net increase (decrease) in short-term borrowings						Net increase (decrease) in short-term borrowings	67,852		(9,186)

Other, net		2,803		—
Net cash used in investing activities		(372,260)		(1,355,398)
Financing activities
Net increase in noninterest-bearing deposits		807,602		1,206,472
Net increase in interest-bearing deposits		388,146		514,646
Net decrease in short-term borrowings		(10,087)		(446,467)
Proceeds from the issuance of long-term debt, net of issuance costs		—		98,299
Repayment of long-term debt	Repayment of long-term debt	(1,742)		(246)		Repayment of long-term debt	(32,008)		(42)
Cash paid for dividends	Cash paid for dividends	(37,578)		(37,607)		Cash paid for dividends	(12,505)		(12,564)
Repurchase of shares in connection with stock repurchase program		(21,314)		(24,569)

Net cash provided by financing activities	Net cash provided by financing activities	1,125,027		1,310,528		Net cash provided by financing activities	108,512		656,035
Net increase (decrease) in cash and cash equivalents		842,938		(825)
Net (decrease) increase in cash and cash equivalents						Net (decrease) increase in cash and cash equivalents	(270,472)		628,713
Cash and cash equivalents at beginning of period	Cash and cash equivalents at beginning of period	633,203		414,930		Cash and cash equivalents at beginning of period	1,877,965		633,203
Cash and cash equivalents at end of period	Cash and cash equivalents at end of period	$	1,476,141	$	414,105	Cash and cash equivalents at end of period	$	1,607,493	$	1,261,916

Supplemental disclosures	Supplemental disclosures					Supplemental disclosures
Cash paid for interest	Cash paid for interest	$	37,827	$	61,351	Cash paid for interest	$	10,324	$	15,108
Cash paid for income taxes	Cash paid for income taxes	$	41,248	$	26,148	Cash paid for income taxes	$	6,195	$	18,032
Noncash transactions:	Noncash transactions:					Noncash transactions:
Transfers of loans to other real estate owned	Transfers of loans to other real estate owned	$	3,171	$	7,887	Transfers of loans to other real estate owned	$	200	$	2,039
Financed sales of other real estate owned		$	442	$	151

Recognition of operating right-of-use assets	Recognition of operating right-of-use assets	$	6,718	$	4,151	Recognition of operating right-of-use assets	$	30	$	3,601
Recognition of operating lease liabilities	Recognition of operating lease liabilities	$	6,718	$	4,151	Recognition of operating lease liabilities	$	30	$	3,601

See Notes to Consolidated Financial Statements.

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1 – Summary of Significant Accounting Policies

(In Thousands)

Nature of Operations: Renasant Corporation (referred to herein as the “Company”) owns and operates Renasant Bank (“Renasant Bank” or the “Bank”), Renasant Insurance, Inc. ~~and~~, Park Place Capital ~~Corporation.~~Corporation and Southeastern Commercial Finance, LLC. Through its subsidiaries, the Company offers a diversified range of financial, wealth management, fiduciary and insurance services to its retail and commercial customers from full service offices located throughout Mississippi, Tennessee, Alabama, Georgia, Florida, North Carolina and South Carolina.

The Company acquired Southeastern Commercial Finance, LLC, an asset-based lending company headquartered in Birmingham, Alabama, effective March 1, 2022.

Basis of Presentation: The accompanying unaudited consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information regarding the Company’s significant accounting policies, refer to the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 filed with the Securities and Exchange Commission on February ~~26, 2021.~~25, 2022.

Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates, and such differences may be material.

Impact of Recently-Issued Accounting Standards and Pronouncements:

In March ~~2020,~~2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ~~2020-04,~~2022-01, “~~Reference Rate Reform~~Derivatives and Hedging (Topic ~~842)~~815): ~~Facilitation of the Effects of Reference Rate Reform on Financial Reporting”~~Fair Value Hedging - Portfolio Layer Method” (“ASU ~~2020-04”~~2022-01”), which ~~provides temporary, optional guidance~~expands the last-of-layer method (which previously allowed entities to ~~ease~~hedge exposure of a closed portfolio of prepayable financial assets to fair value changes due to changes in interest rates for a portion of the potential burden in accounting for reference rate reform on financial reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions if certain criteria are metportfolio that ~~reference LIBOR or another reference rate~~is not expected to be ~~discontinued. As~~affected by prepayments, defaults and other events impacting the timing and amount of cash flows on only one hedged layer) to the portfolio layer method which allows for multiple hedged layers in a single closed portfolio. ASU 2022-01 also expands the scope to include non-prepayable financial assets, specifies eligible hedging instruments in a single layer hedge, provides guidance on the accounting for and disclosure of hedge basis adjustment under the portfolio layer method and specifies how hedge basis adjustments should be considered when determining credit losses for assets included in a closed portfolio. ASU 2022-01 will be effective on January 1, 2023. Early adoption is ~~intended~~permitted, including in an interim period. ASU 2022-01 is not expected to ~~assist stakeholders during the global market-wide reference rate transition period, it is in effect only from March 12, 2020 through December 31, 2022. The Company has established~~have a ~~LIBOR Transition Committee and is currently evaluating the~~significant impact ~~of adopting ASU 2020-04~~ on the Company’s financial statements.

~~Subsequent Events~~In March 2022, the FASB issued ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures”

~~On October~~ (“ASU 2022-02”), whicheliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification (“ASC”) Subtopic 310-40, “Receivables - Troubled Debt Restructurings by Creditors,” while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, ASU 2022-02 requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. ASU 2022-02 will be effective on January 1, ~~2021, the Company redeemed at par $15,000 of 6.50% Fixed-to-Floating Rate Subordinated Notes that were assumed as part of the Metropolitan BancGroup, Inc. acquisition~~2023. Early adoption is permitted, including in ~~2017.~~

~~On October 27, 2021, the Company prepaid a $150,000 long-term advance from the Federal Home Loan Bank (“FHLB”).~~an interim period. The ~~long-term advance featured a floating rate of three-month LIBOR less 50 basis points with a 0% floor that converted to a fixed rate of 1.358% in October 2021. As a result~~adoption of this ~~early prepayment,~~accounting pronouncement will have no impact on the ~~Company incurred penalty charges of $6,123.~~

Company’s financial statements aside from additional and revised disclosures.

On October 27, 2021, the Bank terminated swaps with a total notional amount of $100,000. These swaps hedged forecasted future FHLB borrowings which are no longer forecasted to occur. As a result of the termination the Company recognized a gain of $4,730.

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 2 – Securities

(In Thousands, Except Number of Securities)

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

There was no allowance for credit losses allocated to any of the Company’s available for sale securities as of ~~September 30, 2021~~March 31, 2022 or December 31, ~~2020.~~2021.


		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2021
March 31, 2022										March 31, 2022
U.S. Treasury securities	U.S. Treasury securities	$	3,014	$	10	$	—	$	3,024	U.S. Treasury securities	$	2,000	$	—	$	—	$	2,000

Obligations of states and political subdivisions	Obligations of states and political subdivisions	372,311		9,096		(2,426)		378,981		Obligations of states and political subdivisions	161,565		1,117		(5,205)		157,477
Residential mortgage backed securities:	Residential mortgage backed securities:									Residential mortgage backed securities:
Government agency mortgage backed securities	Government agency mortgage backed securities	935,233		11,694		(3,689)		943,238		Government agency mortgage backed securities	969,140		1,249		(48,493)		921,896
Government agency collateralized mortgage obligations	Government agency collateralized mortgage obligations	962,684		1,225		(6,172)		957,737		Government agency collateralized mortgage obligations	1,094,043		5		(83,591)		1,010,457
Commercial mortgage backed securities:	Commercial mortgage backed securities:									Commercial mortgage backed securities:
Government agency mortgage backed securities	Government agency mortgage backed securities	16,650		515		(1)		17,164		Government agency mortgage backed securities	11,277		—		(371)		10,906
Government agency collateralized mortgage obligations	Government agency collateralized mortgage obligations	191,554		1,316		(2,338)		190,532		Government agency collateralized mortgage obligations	221,955		87		(12,852)		209,190

Other debt securities	Other debt securities	51,321		2,646		—		53,967		Other debt securities	94,996		385		(1,991)		93,390

		$	2,532,767	$	26,502	$	(14,626)	$	2,544,643		$	2,554,976	$	2,843	$	(152,503)	$	2,405,316


		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2020
December 31, 2021										December 31, 2021
U.S. Treasury securities	U.S. Treasury securities	$	7,047	$	32	$	—	$	7,079	U.S. Treasury securities	$	3,007	$	3	$	—	$	3,010
Obligations of other U.S. Government agencies and corporations	Obligations of other U.S. Government agencies and corporations	1,003		6		—		1,009		Obligations of other U.S. Government agencies and corporations	153,847		5,532		(269)		159,110
Obligations of states and political subdivisions	Obligations of states and political subdivisions	291,231		14,015		(45)		305,201		Obligations of states and political subdivisions	—		—		—		—
Residential mortgage backed securities:	Residential mortgage backed securities:									Residential mortgage backed securities:
Government agency mortgage backed securities	Government agency mortgage backed securities	581,105		21,564		(23)		602,646		Government agency mortgage backed securities	967,497		7,854		(6,816)		968,535
Government agency collateralized mortgage obligations	Government agency collateralized mortgage obligations	218,373		1,946		(51)		220,268		Government agency collateralized mortgage obligations	1,008,514		457		(20,371)		988,600
Commercial mortgage backed securities:	Commercial mortgage backed securities:									Commercial mortgage backed securities:
Government agency mortgage backed securities	Government agency mortgage backed securities	29,053		1,235		(1)		30,287		Government agency mortgage backed securities	14,717		365		(1)		15,081
Government agency collateralized mortgage obligations	Government agency collateralized mortgage obligations	99,377		2,992		(21)		102,348		Government agency collateralized mortgage obligations	216,859		812		(3,419)		214,252
Trust preferred securities	Trust preferred securities	12,013		—		(3,001)		9,012		Trust preferred securities	—		—		—		—
Other debt securities	Other debt securities	62,771		2,909		(73)		65,607		Other debt securities	36,515		1,097		(148)		37,464

		$	1,301,973	$	44,699	$	(3,215)	$	1,343,457		$	2,400,956	$	16,120	$	(31,024)	$	2,386,052

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2022
Obligations of states and political subdivisions	$	290,588	$	—	$	(26,969)	$	263,619
Residential mortgage backed securities
Government agency mortgage backed securities	95,369		—		(3,943)		91,426
Government agency collateralized mortgage obligations	23,403		—		(1,904)		21,499
Commercial mortgage backed securities:
Government agency mortgage backed securities	17,022		—		(1,488)		15,534
Government agency collateralized mortgage obligations	38,906		—		(2,261)		36,645
Other debt securities	21,938		—		(1,120)		20,818
	$	487,226	$	—	$	(37,685)	$	449,541
Allowance for credit losses - held to maturity securities	(32)
Held to maturity securities, net of allowance for credit losses	$	487,194


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2021
Obligations of states and political subdivisions	$	267,641	$	333	$	(685)	$	267,289
Residential mortgage backed securities
Government agency mortgage backed securities	60,507		1		(198)		60,310
Government agency collateralized mortgage obligations	24,832		—		(92)		24,740
Commercial mortgage backed securities:
Government agency mortgage backed securities	1,855		—		—		1,855
Government agency collateralized mortgage obligations	39,505		—		(117)		39,388
Other debt securities	22,049		—		(79)		21,970
	$	416,389	$	334	$	(1,171)	$	415,552
Allowance for credit losses - held to maturity securities	(32)
Held to maturity securities, net of allowance for credit losses	$	416,357

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

~~Securities sold were as set forth in the tables below.~~ There were no securities sold during the three months ended ~~September 30, 2020.~~March 31, 2022. Securities sold during the three months ended March 31, 2021 were as set forth in the table below.

Carrying Value Net Proceeds Gain/(Loss)
Three months ended September 30, 2021
Residential mortgage backed securities:
Government agency mortgage backed securities $ 9,232 $ 9,739 $ 507
Government agency collateralized mortgage obligations 6,736 6,866 130
Other debt securities 4,283 4,410 127
$ 20,251 $ 21,015 $ 764
Nine months ended September 30, 2021
Obligations of states and political subdivisions $ 47 $ 50 $ 3
Residential mortgage backed securities:
Government agency mortgage backed securities 145,572 149,474 3,902
Government agency collateralized mortgage obligations 12,362 12,512 150
Trust preferred securities 12,021 9,960 (2,061)
Other debt securities 4,283 4,410 127
$ 174,285 $ 176,406 $ 2,121


		Carrying Value		Net Proceeds		Gain/(Loss)			Carrying Value		Net Proceeds		Gain/(Loss)

Nine months ended September 30, 2020
Three months ended March 31, 2021								Three months ended March 31, 2021

Obligations of states and political subdivisions	Obligations of states and political subdivisions	$	2,696	$	2,561	$	(135)	Obligations of states and political subdivisions	$	47	$	50	$	3
Residential mortgage backed securities:	Residential mortgage backed securities:							Residential mortgage backed securities:
Government agency mortgage backed securities	Government agency mortgage backed securities	6,046		6,212		166		Government agency mortgage backed securities	136,340		139,735		3,395
Government agency collateralized mortgage obligations								Government agency collateralized mortgage obligations	5,626		5,646		20

Trust preferred securities								Trust preferred securities	12,021		9,960		(2,061)

									$	154,034	$	155,391	$	1,357

		$	8,742	$	8,773	$	31

Gross realized gains and losses on sales of securities available for sale for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 were as follows:

Three Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Gross gains on sales of securities available for sale $ 825 $ — $ 4,333 $ 166
Gross losses on sales of securities available for sale (61) — (2,212) (135)
Gains on sales of securities available for sale, net $ 764 $ — $ 2,121 $ 31



	Three Months Ended
	March 31,
		2021
Gross gains on sales of securities available for sale		$	3,508
Gross losses on sales of securities available for sale		(2,151)
Gains on sales of securities available for sale, net		$	1,357

At ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, securities with a carrying value of ~~$536,018~~$684,687 and ~~$582,338,~~$607,681, respectively, were pledged to secure government, public and trust deposits. Securities with a carrying value of ~~$21,445~~$18,305 and ~~$32,272~~$21,493 were pledged as collateral for short-term borrowings and derivative instruments at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

The amortized cost and fair value of securities at ~~September 30, 2021~~March 31, 2022 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~


		Available for Sale			Held to Maturity						Available for Sale
			Amortized Cost			Fair Value			Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	Due within one year		$	9,229		$	9,334	Due within one year	$	155	$	155	$	3,996	$	4,003
Due after one year through five years	Due after one year through five years		42,312			44,024		Due after one year through five years	2,047		1,977		37,518		37,814
Due after five years through ten years	Due after five years through ten years		58,334			61,568		Due after five years through ten years	18,244		16,884		66,830		66,946
Due after ten years	Due after ten years		290,472			293,271		Due after ten years	270,142		244,603		88,851		84,252
Residential mortgage backed securities:	Residential mortgage backed securities:							Residential mortgage backed securities:
Government agency mortgage backed securities	Government agency mortgage backed securities		935,233			943,238		Government agency mortgage backed securities	95,369		91,426		969,140		921,896
Government agency collateralized mortgage obligations	Government agency collateralized mortgage obligations		962,684			957,737		Government agency collateralized mortgage obligations	23,403		21,499		1,094,043		1,010,457
Commercial mortgage backed securities:	Commercial mortgage backed securities:							Commercial mortgage backed securities:
Government agency mortgage backed securities	Government agency mortgage backed securities		16,650			17,164		Government agency mortgage backed securities	17,022		15,534		11,277		10,906
Government agency collateralized mortgage obligations	Government agency collateralized mortgage obligations		191,554			190,532		Government agency collateralized mortgage obligations	38,906		36,645		221,955		209,190
Other debt securities	Other debt securities		26,299			27,775		Other debt securities	21,938		20,818		61,366		59,852

			$	2,532,767		$	2,544,643		$	487,226	$	449,541	$	2,554,976	$	2,405,316

109

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The following tables present the age of gross unrealized losses and fair value by investment category for which an allowance for credit losses has not been recorded as of the dates presented:


		Less than 12 Months					12 Months or More					Total
		#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses

																		Less than 12 Months					12 Months or More					Total
																		#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses
Available for Sale:	Available for Sale:																Available for Sale:
September 30, 2021
March 31, 2022																	March 31, 2022

Obligations of states and political subdivisions	Obligations of states and political subdivisions	46	$	145,658	$	(2,338)	3	$	3,884	$	(88)	49	$	149,542	$	(2,426)	Obligations of states and political subdivisions	41	$	81,646	$	(4,767)	4	$	5,805	$	(438)	45	$	87,451	$	(5,205)
Residential mortgage backed securities:	Residential mortgage backed securities:																Residential mortgage backed securities:
Government agency mortgage backed securities	Government agency mortgage backed securities	45	508,398		(3,689)		—	—		—		45	508,398		(3,689)		Government agency mortgage backed securities	80	761,484		(43,653)		6	49,651		(4,840)		86	811,135		(48,493)
Government agency collateralized mortgage obligations	Government agency collateralized mortgage obligations	33	726,128		(6,172)		—	—		—		33	726,128		(6,172)		Government agency collateralized mortgage obligations	61	932,820		(74,437)		4	77,376		(9,154)		65	1,010,196		(83,591)
Commercial mortgage backed securities:	Commercial mortgage backed securities:																Commercial mortgage backed securities:
Government agency mortgage backed securities	Government agency mortgage backed securities	17	3,673		(1)		1	439		—		18	4,112		(1)		Government agency mortgage backed securities	3	10,481		(371)		1	425		—		4	10,906		(371)
Government agency collateralized mortgage obligations	Government agency collateralized mortgage obligations	2	129,054		(2,303)		1	3,004		(35)		3	132,058		(2,338)		Government agency collateralized mortgage obligations	24	150,009		(8,741)		7	40,496		(4,111)		31	190,505		(12,852)

Other debt securities																	Other debt securities	10	51,369		(1,991)		—	—		—		10	51,369		(1,991)
Total	Total	143	$	1,512,911	$	(14,503)	5	$	7,327	$	(123)	148	$	1,520,238	$	(14,626)	Total	219	$	1,987,809	$	(133,960)	22	$	173,753	$	(18,543)	241	$	2,161,562	$	(152,503)
December 31, 2020
December 31, 2021																	December 31, 2021

Obligations of states and political subdivisions	Obligations of states and political subdivisions	6	$	9,403	$	(45)	—	$	—	$	—	6	$	9,403	$	(45)	Obligations of states and political subdivisions	8	$	34,303	$	(216)	3	$	3,892	$	(53)	11	$	38,195	$	(269)
Residential mortgage backed securities:	Residential mortgage backed securities:																Residential mortgage backed securities:
Government agency mortgage backed securities	Government agency mortgage backed securities	2	19,755		(23)		—	—		—		2	19,755		(23)		Government agency mortgage backed securities	41	727,546		(6,312)		1	12,305		(504)		42	739,851		(6,816)
Government agency collateralized mortgage obligations	Government agency collateralized mortgage obligations	5	27,143		(51)		—	—		—		5	27,143		(51)		Government agency collateralized mortgage obligations	49	966,126		(20,371)		—	—		—		49	966,126		(20,371)
Commercial mortgage backed securities:	Commercial mortgage backed securities:																Commercial mortgage backed securities:
Government agency mortgage backed securities	Government agency mortgage backed securities	1	1,538		(1)		1	459		—		2	1,997		(1)		Government agency mortgage backed securities	1	1,791		(1)		1	432		—		2	2,223		(1)
Government agency collateralized mortgage obligations	Government agency collateralized mortgage obligations	3	14,190		(21)		—	—		—		3	14,190		(21)		Government agency collateralized mortgage obligations	21	160,919		(3,072)		2	9,005		(347)		23	169,924		(3,419)
Trust preferred securities	Trust preferred securities	—	—		—		2	9,012		(3,001)		2	9,012		(3,001)		Trust preferred securities	—	—		—		—	—		—		—	—		—
Other debt securities	Other debt securities	4	3,330		(70)		1	566		(3)		5	3,896		(73)		Other debt securities	1	8,699		(148)		—	—		—		1	8,699		(148)

Total	Total	21	$	75,359	$	(211)	4	$	10,037	$	(3,004)	25	$	85,396	$	(3,215)	Total	121	$	1,899,384	$	(30,120)	7	$	25,634	$	(904)	128	$	1,925,018	$	(31,024)

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)


	Less than 12 Months					12 Months or More					Total
	#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses
Held to Maturity:
March 31, 2022
Obligations of states and political subdivisions	127	$	261,920	$	(26,786)	1	$	1,699	$	(183)	128	$	263,619	$	(26,969)
Residential mortgage backed securities:
Government agency mortgage backed securities	55	86,842		(3,599)		1	4,584		(344)		56	91,426		(3,943)
Government agency collateralized mortgage obligations	—	—		—		1	21,499		(1,904)		1	$	21,499	$	(1,904)
Commercial mortgage backed securities:
Government agency mortgage backed securities	1	15,534		(1,488)		—	—		—		1	$	15,534	$	(1,488)
Government agency collateralized mortgage obligations	6	31,380		(1,923)		1	5,265		(338)		7	$	36,645	$	(2,261)
Other debt securities	8	20,818		(1,120)		—	—		—		8	$	20,818	$	(1,120)
Total	197	$	416,494	$	(34,916)	4	$	33,047	$	(2,769)	201	$	449,541	$	(37,685)
December 31, 2021
Obligations of states and political subdivisions	24	$	62,131	$	(685)	—	$	—	$	—	24	$	62,131	$	(685)
Residential mortgage backed securities:
Government agency mortgage backed securities	50	53,560		(181)		1	5,354		(17)		51	58,914		(198)
Government agency collateralized mortgage obligations	1	24,740		(92)		—	—		—		1	24,740		(92)
Commercial mortgage backed securities:
Government agency collateralized mortgage obligations	7	39,388		(117)		—	—		—		7	39,388		(117)
Other debt securities	8	21,972		(79)		—	—		—		8	21,972		(79)
Total	90	$	201,791	$	(1,154)	1	$	5,354	$	(17)	91	$	207,145	$	(1,171)

The Company evaluates its investment portfolio for impairment related to credit losses on a quarterly basis. Impairment is assessed at the individual security level. The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. If the Company intends to sell the investment security or if the Company does not expect to recover the entire amortized cost basis of the security before the Company is required to sell the security or before the security’s maturity, the security is impaired and written down to fair value with all losses recognized in earnings.

The Company does not intend to sell any securities in an unrealized loss position, ~~that it holds,~~ and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be at maturity. Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period longer than twelve months, the Company is collecting principal and interest payments from the respective issuers as scheduled. Based upon its review of securities with unrealized losses as of March 31, 2022, the Company determined that all such losses resulted from factors not deemed credit related. As ~~a result, no~~such, the Company did not record any impairment for the first quarter.

The allowance for credit losses ~~for~~on held to maturity securities was ~~needed~~$32 at ~~September 30,~~March 31, 2022 and December 31, 2021. The Company monitors the credit quality of debt securities held to maturity using bond investment grades assigned by third party ratings agencies. Updated investment grades are obtained as they become available from agencies. On March 31, 2022, 99.9% of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies.

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 3 – Non Purchased Loans

(In Thousands, Except Number of Loans)

For purposes of this Note 3, all references to “loans” mean non purchased loans excluding loans held for sale.

The following is a summary of non purchased loans and leases as of the dates presented:


		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Commercial, financial, agricultural(1)	Commercial, financial, agricultural(1)	$	1,321,569	$	2,360,471	Commercial, financial, agricultural(1)	$	1,336,239	$	1,332,962
Lease financing	Lease financing	83,496		80,022		Lease financing	94,954		80,192
Real estate – construction:	Real estate – construction:					Real estate – construction:
Residential	Residential	306,537		243,814		Residential	305,396		300,988
Commercial	Commercial	779,766		583,338		Commercial	911,532		798,914
Total real estate – construction	Total real estate – construction	1,086,303		827,152		Total real estate – construction	1,216,928		1,099,902
Real estate – 1-4 family mortgage:	Real estate – 1-4 family mortgage:					Real estate – 1-4 family mortgage:
Primary	Primary	1,657,195		1,536,181		Primary	1,803,750		1,682,050
Home equity	Home equity	424,860		432,768		Home equity	424,426		423,108
Rental/investment	Rental/investment	268,609		264,436		Rental/investment	274,117		268,245
Land development	Land development	133,732		123,179		Land development	142,294		135,070
Total real estate – 1-4 family mortgage	Total real estate – 1-4 family mortgage	2,484,396		2,356,564		Total real estate – 1-4 family mortgage	2,644,587		2,508,473
Real estate – commercial mortgage:	Real estate – commercial mortgage:					Real estate – commercial mortgage:
Owner-occupied	Owner-occupied	1,365,288		1,334,765		Owner-occupied	1,318,446		1,329,219
Non-owner occupied	Non-owner occupied	2,323,135		2,194,739		Non-owner occupied	2,510,981		2,446,370
Land development	Land development	106,475		120,125		Land development	116,113		110,395
Total real estate – commercial mortgage	Total real estate – commercial mortgage	3,794,898		3,649,629		Total real estate – commercial mortgage	3,945,540		3,885,984
Installment loans to individuals	Installment loans to individuals	109,499		149,862		Installment loans to individuals	105,754		107,565
Gross loans	Gross loans	8,880,161		9,423,700		Gross loans	9,344,002		9,015,078
Unearned income	Unearned income	(4,281)		(4,160)		Unearned income	(5,112)		(4,067)
Loans, net of unearned income	Loans, net of unearned income	$	8,875,880	$	9,419,540	Loans, net of unearned income	$	9,338,890	$	9,011,011

(1)Includes Paycheck Protection Program (“PPP”) loans of ~~$67,462~~$8,382 and ~~$1,128,703~~$58,391 as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

Past Due and Nonaccrual Loans

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, the recognition of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer and other retail loans are typically charged-off no later than the time the loan is 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. ~~All~~For loans that are placed on nonaccrual status or charged-off, all interest accrued for the current year but not collected ~~for loans that are placed on nonaccrual status or charged-off~~ is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The following tables provide an aging of past due accruing and nonaccruing loans, segregated by class, as of the dates presented:


		Accruing Loans								Nonaccruing Loans											Accruing Loans								Nonaccruing Loans
		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans			30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans
September 30, 2021
March 31, 2022																				March 31, 2022
Commercial, financial, agricultural	Commercial, financial, agricultural	$	1,708	$	395	$	1,313,683	$	1,315,786	$	414	$	2,534	$	2,835	$	5,783	$	1,321,569	Commercial, financial, agricultural	$	1,519	$	77	$	1,329,682	$	1,331,278	$	739	$	2,875	$	1,347	$	4,961	$	1,336,239
Lease financing	Lease financing	—		—		83,485		83,485		—		11		—		11		83,496		Lease financing	—		—		94,954		94,954		—		—		—		—		94,954
Real estate – construction:	Real estate – construction:																			Real estate – construction:
Residential	Residential	853		—		305,684		306,537		—		—		—		—		306,537		Residential	1,857		—		303,539		305,396		—		—		—		—		305,396
Commercial	Commercial	—		—		779,766		779,766		—		—		—		—		779,766		Commercial	—		—		911,532		911,532		—		—		—		—		911,532
Total real estate – construction	Total real estate – construction	853		—		1,085,450		1,086,303		—		—		—		—		1,086,303		Total real estate – construction	1,857		—		1,215,071		1,216,928		—		—		—		—		1,216,928
Real estate – 1-4 family mortgage:	Real estate – 1-4 family mortgage:																			Real estate – 1-4 family mortgage:
Primary	Primary	5,583		452		1,639,206		1,645,241		981		5,951		5,022		11,954		1,657,195		Primary	16,852		—		1,771,806		1,788,658		4,018		6,812		4,262		15,092		1,803,750
Home equity	Home equity	1,225		—		422,897		424,122		61		502		175		738		424,860		Home equity	1,953		32		420,995		422,980		54		1,012		380		1,446		424,426
Rental/investment	Rental/investment	301		22		267,420		267,743		—		383		483		866		268,609		Rental/investment	562		100		272,736		273,398		16		438		265		719		274,117
Land development	Land development	125		33		133,376		133,534		—		119		79		198		133,732		Land development	332		—		141,441		141,773		—		333		188		521		142,294
Total real estate – 1-4 family mortgage	Total real estate – 1-4 family mortgage	7,234		507		2,462,899		2,470,640		1,042		6,955		5,759		13,756		2,484,396		Total real estate – 1-4 family mortgage	19,699		132		2,606,978		2,626,809		4,088		8,595		5,095		17,778		2,644,587
Real estate – commercial mortgage:	Real estate – commercial mortgage:																			Real estate – commercial mortgage:
Owner-occupied	Owner-occupied	609		2		1,360,882		1,361,493		—		1,052		2,743		3,795		1,365,288		Owner-occupied	2,617		—		1,312,212		1,314,829		2,809		808		—		3,617		1,318,446
Non-owner occupied	Non-owner occupied	167		4		2,317,375		2,317,546		—		13		5,576		5,589		2,323,135		Non-owner occupied	662		—		2,504,698		2,505,360		—		—		5,621		5,621		2,510,981
Land development	Land development	273		—		106,088		106,361		—		114		—		114		106,475		Land development	202		—		115,582		115,784		—		292		37		329		116,113
Total real estate – commercial mortgage	Total real estate – commercial mortgage	1,049		6		3,784,345		3,785,400		—		1,179		8,319		9,498		3,794,898		Total real estate – commercial mortgage	3,481		—		3,932,492		3,935,973		2,809		1,100		5,658		9,567		3,945,540
Installment loans to individuals	Installment loans to individuals	765		—		108,516		109,281		79		34		105		218		109,499		Installment loans to individuals	674		—		104,813		105,487		3		20		244		267		105,754
Unearned income	Unearned income	—		—		(4,281)		(4,281)		—		—		—		—		(4,281)		Unearned income	—		—		(5,112)		(5,112)		—		—		—		—		(5,112)
Loans, net of unearned income	Loans, net of unearned income	$	11,609	$	908	$	8,834,097	$	8,846,614	$	1,535	$	10,713	$	17,018	$	29,266	$	8,875,880	Loans, net of unearned income	$	27,230	$	209	$	9,278,878	$	9,306,317	$	7,639	$	12,590	$	12,344	$	32,573	$	9,338,890

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)


		Accruing Loans								Nonaccruing Loans											Accruing Loans								Nonaccruing Loans
		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans			30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans
December 31, 2020
December 31, 2021																				December 31, 2021
Commercial, financial, agricultural	Commercial, financial, agricultural	$	1,124	$	231	$	2,354,716	$	2,356,071	$	164	$	1,804	$	2,432	$	4,400	$	2,360,471	Commercial, financial, agricultural	$	3,325	$	103	$	1,323,774	$	1,327,202	$	1,669	$	2,665	$	1,426	$	5,760	$	1,332,962
Lease financing	Lease financing	—		—		79,974		79,974		—		48		—		48		80,022		Lease financing	—		—		80,181		80,181		—		11		—		11		80,192
Real estate – construction:	Real estate – construction:																			Real estate – construction:
Residential	Residential	—		—		243,317		243,317		—		497		—		497		243,814		Residential	1,077		—		299,911		300,988		—		—		—		—		300,988
Commercial	Commercial	—		—		583,338		583,338		—		—		—		—		583,338		Commercial	—		—		798,914		798,914		—		—		—		—		798,914
Total real estate – construction	Total real estate – construction	—		—		826,655		826,655		—		497		—		497		827,152		Total real estate – construction	1,077		—		1,098,825		1,099,902		—		—		—		—		1,099,902
Real estate – 1-4 family mortgage:	Real estate – 1-4 family mortgage:																			Real estate – 1-4 family mortgage:
Primary	Primary	11,889		1,754		1,513,716		1,527,359		1,865		2,744		4,213		8,822		1,536,181		Primary	14,785		389		1,652,940		1,668,114		1,920		8,195		3,821		13,936		1,682,050
Home equity	Home equity	1,152		360		430,702		432,214		66		111		377		554		432,768		Home equity	1,468		—		420,695		422,163		182		546		217		945		423,108
Rental/investment	Rental/investment	663		210		263,064		263,937		61		194		244		499		264,436		Rental/investment	401		445		266,353		267,199		—		771		275		1,046		268,245
Land development	Land development	97		—		123,051		123,148		—		—		31		31		123,179		Land development	431		—		134,382		134,813		—		65		192		257		135,070
Total real estate – 1-4 family mortgage	Total real estate – 1-4 family mortgage	13,801		2,324		2,330,533		2,346,658		1,992		3,049		4,865		9,906		2,356,564		Total real estate – 1-4 family mortgage	17,085		834		2,474,370		2,492,289		2,102		9,577		4,505		16,184		2,508,473
Real estate – commercial mortgage:	Real estate – commercial mortgage:																			Real estate – commercial mortgage:
Owner-occupied	Owner-occupied	779		795		1,330,155		1,331,729		—		2,598		438		3,036		1,334,765		Owner-occupied	720		36		1,325,776		1,326,532		163		822		1,702		2,687		1,329,219
Non-owner occupied	Non-owner occupied	922		127		2,191,440		2,192,489		—		2,197		53		2,250		2,194,739		Non-owner occupied	260		89		2,440,513		2,440,862		—		—		5,508		5,508		2,446,370
Land development	Land development	113		115		119,820		120,048		44		29		4		77		120,125		Land development	476		—		109,575		110,051		—		292		52		344		110,395
Total real estate – commercial mortgage	Total real estate – commercial mortgage	1,814		1,037		3,641,415		3,644,266		44		4,824		495		5,363		3,649,629		Total real estate – commercial mortgage	1,456		125		3,875,864		3,877,445		163		1,114		7,262		8,539		3,885,984
Installment loans to individuals	Installment loans to individuals	896		191		148,620		149,707		4		117		34		155		149,862		Installment loans to individuals	978		12		106,318		107,308		30		95		132		257		107,565
Unearned income	Unearned income	—		—		(4,160)		(4,160)		—		—		—		—		(4,160)		Unearned income	—		—		(4,067)		(4,067)		—		—		—		—		(4,067)
Loans, net of unearned income	Loans, net of unearned income	$	17,635	$	3,783	$	9,377,753	$	9,399,171	$	2,204	$	10,339	$	7,826	$	20,369	$	9,419,540	Loans, net of unearned income	$	23,921	$	1,074	$	8,955,265	$	8,980,260	$	3,964	$	13,462	$	13,325	$	30,751	$	9,011,011

Restructured loans not performing in accordance with their restructured terms that are either contractually 90 days or more past due or placed on nonaccrual status are reported as nonperforming loans. There were no restructured loans contractually 90 days past due or more and still accruing at ~~September 30, 2021 and 1 restructured loan in the amount of $92 contractually 90 days past due~~March 31, 2022 or ~~more and still accruing at September 30, 2020.~~March 31, 2021. The outstanding balance of restructured loans on nonaccrual status was ~~$12,411~~$15,267 and ~~$3,703~~$5,965 at ~~September 30,~~March 31, 2022 and March 31, 2021, ~~and September 30, 2020,~~ respectively.

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Restructured Loans

Restructured loans are those for which concessions have been granted to the borrower due to a deterioration of the borrower’s financial condition and which are performing in accordance with the new terms. Such concessions may include reduction in interest rates or deferral of interest or principal payments. In evaluating whether to restructure a loan, management analyzes the long-term financial condition of the borrower, including guarantor and collateral support, to determine whether the proposed concessions will increase the likelihood of repayment of principal and interest.

The tables below illustrate the impact of modifications classified as restructured loans which were made during the periods presented and held on the Consolidated Balance Sheets at the respective period end.


		Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment			Number of Loans	Pre- Modification Amortized Cost		Post- Modification Amortized Cost
Three months ended September 30, 2021
Commercial, financial, agricultural		1	$	30	$	30
Three months ended March 31, 2022							Three months ended March 31, 2022

Real estate – 1-4 family mortgage:	Real estate – 1-4 family mortgage:						Real estate – 1-4 family mortgage:
Primary	Primary	11	1,518		1,538		Primary	7	$	865	$	873

Real estate – commercial mortgage:							Real estate – commercial mortgage:
Owner-occupied							Owner-occupied	1	6,500		6,500

Total	Total	12	$	1,548	$	1,568	Total	8	$	7,365	$	7,373

Three months ended September 30, 2020
Commercial, financial, agricultural		1	$	31	$	31
Three months ended March 31, 2021							Three months ended March 31, 2021

Real estate – 1-4 family mortgage:	Real estate – 1-4 family mortgage:						Real estate – 1-4 family mortgage:
Primary	Primary	2	201		200		Primary	3	$	432	$	435

Rental/investment		1	33		32

Total real estate – 1-4 family mortgage		3	234		232

Real estate – commercial mortgage:	Real estate – commercial mortgage:						Real estate – commercial mortgage:
Owner-occupied		2	357		357

Non-owner occupied	Non-owner occupied	2	210		210		Non-owner occupied	1	837		810

Total real estate – commercial mortgage		4	567		567

Total	Total	8	$	832	$	830	Total	4	$	1,269	$	1,245

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

Number of
Loans Pre-
Modification
Outstanding
Recorded
Investment Post-
Modification
Outstanding
Recorded
Investment
Nine months ended September 30, 2021
Commercial, financial, agricultural 7 $ 5,258 $ 5,258
Real estate – 1-4 family mortgage:
Primary 23 3,321 3,350
Real estate – commercial mortgage:
Non-owner occupied 1 837 810
Total 31 $ 9,416 $ 9,418
Nine months ended September 30, 2020
Commercial, financial, agricultural 7 $ 1,862 $ 1,859
Real estate – 1-4 family mortgage:
Primary 17 2,356 2,363
Rental/investment 2 142 142
Total real estate – 1-4 family mortgage 19 2,498 2,505
Real estate – commercial mortgage:
Owner-occupied 3 3,019 2,970
Non-owner occupied 2 210 210
Land development 1 189 189
Total real estate – commercial mortgage 6 3,418 3,369
Installment loans to individuals 2 24 21
Total 34 $ 7,802 $ 7,754

With respect to loans that were restructured during the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and March 31, 2021, none have subsequently defaulted ~~as of the date of this report. With respect to loans that were restructured during the nine months ended September 30, 2020, $64 have subsequently defaulted, and remain outstanding,~~ as of the date of this report.

Changes in the Company’s restructured loans are set forth in the table below:


		Number of Loans	Recorded Investment			Number of Loans	Recorded Investment
Totals at January 1, 2021		76	$	11,761
Totals at January 1, 2022					Totals at January 1, 2022	97	$	14,650
Additional advances or loans with concessions	Additional advances or loans with concessions	31	9,441		Additional advances or loans with concessions	8	7,403
Reclassified as performing restructured loan		1	35

Reductions due to:	Reductions due to:				Reductions due to:
Reclassified as nonperforming	Reclassified as nonperforming	(4)	(370)		Reclassified as nonperforming	(4)	(452)
Paid in full	Paid in full	(14)	(6,031)		Paid in full	(5)	(530)

Principal paydowns	Principal paydowns	—	(645)		Principal paydowns	—	(91)

Totals at September 30, 2021		90	$	14,191
Totals at March 31, 2022					Totals at March 31, 2022	96	$	20,980

The allowance for credit losses attributable to restructured loans was ~~$260~~$646 and ~~$279~~$328 at ~~September 30,~~March 31, 2022 and March 31, 2021, ~~and September 30, 2020,~~ respectively. The Company had no$305 in remaining availability under commitments to lend additional funds on these restructured loans at ~~September 30, 2021~~March 31, 2022 and ~~September 30, 2020.~~

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

In response to the economic environment caused by the COVID-19 pandemic, the Company implemented a loan deferral program in the second quarter of 2020 to provide temporary payment relief to both consumer and commercial customers. Any customer current on loan payments, taxes and insurance qualified for an initial 90-day deferral of principal and interest payments. A second 90-day deferral was available to borrowers that remained current on taxes and insurance through the first deferral period and also satisfied underwriting standards established by the Company that analyzed the ability of the borrower to service its loan in accordance with its existing terms in light of the impact of the COVID-19 pandemic on the borrower, its industry and the markets in which it operated. The Company’s loan deferral program complied with the guidance set forth in the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and related guidance from the FDIC and other banking regulators. As of September 30, 2021, the Company has discontinued its deferral program but 30 loans with total balances of approximately $3,300 remained on deferral. In accordance with the applicable guidance, none of these loans are considered “restructured loans.”no remaining availability at March 31, 2021.

Credit Quality

For loans with a commercial purpose, internal risk-rating grades are assigned by lending, credit administration or loan review personnel, based on an analysis of the financial and collateral strength and other credit attributes underlying each loan. Management analyzes the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the portfolio balances of commercial and commercial real estate secured loans. Loan grades range

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

between 1 and 9, with 1 being loans with the least credit risk. Loans within the “Pass” grade (reserved for loans with a risk rating between 1 and 4C) generally have a lower risk of loss and therefore a lower risk factor applied to the loan balances. The “Special Mention” grade (those with a risk rating of 4E) represents a loan where a significant adverse risk-modifying action is anticipated in the near term and, if left uncorrected, could result in deterioration of the credit quality of the loan. Loans that migrate toward the “Substandard” grade (those with a risk rating between 5 and 9) generally have a higher risk of loss and therefore a higher risk factor applied to those related loan balances.

The following tables present the Company’s loan portfolio by year of origination and internal risk-rating grades as of the dates presented:


		Term Loans Amortized Cost Basis by Origination Year																			Term Loans Amortized Cost Basis by Origination Year
		2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans			2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
September 30, 2021
March 31, 2022																				March 31, 2022
Commercial, Financial, Agricultural	Commercial, Financial, Agricultural	$	219,635	$	300,742	$	156,654	$	51,385	$	23,011	$	13,120	$	453,330	$	2,846	$	1,220,723	Commercial, Financial, Agricultural	$	96,762	$	276,836	$	184,316	$	105,812	$	39,160	$	21,356	$	573,245	$	4,504	$	1,301,991
Pass	Pass	218,622		300,504		153,728		49,799		22,140		10,419		449,649		2,047		1,206,908		Pass	96,208		275,666		176,524		105,294		37,590		20,606		571,066		3,497		1,286,451
Special Mention	Special Mention	—		143		2,386		290		635		1,251		458		—		5,163		Special Mention	89		—		—		194		272		—		601		—		1,156
Substandard	Substandard	1,013		95		540		1,296		236		1,450		3,223		799		8,652		Substandard	465		1,170		7,792		324		1,298		750		1,578		1,007		14,384

Lease Financing Receivables																				Lease Financing Receivables	$	19,463	$	24,644	$	21,969	$	14,215	$	6,758	$	2,793	$	—	$	—	$	89,842
Pass																				Pass	19,463		24,644		21,969		14,215		6,758		2,341		—		—		89,390
Special Mention																				Special Mention	—		—		—		—		—		452		—		—		452
Substandard																				Substandard	—		—		—		—		—		—		—		—		—

Real Estate - Construction	Real Estate - Construction	$	335,332	$	404,063	$	243,552	$	13,876	$	—	$	—	$	6,136	$	5,499	$	1,008,458	Real Estate - Construction	$	162,809	$	482,341	$	318,316	$	145,402	$	15,525	$	—	$	6,539	$	602	$	1,131,534
Residential	Residential	$	187,482	$	32,508	$	—	$	—	$	—	$	—	$	6,136	$	5,499	$	231,625	Residential	$	61,146	$	150,122	$	6,025	$	—	$	—	$	—	$	2,107	$	602	$	220,002
Pass	Pass	187,482		32,508		—		—		—		—		6,136		5,499		231,625		Pass	61,146		150,122		6,025		—		—		—		2,107		602		220,002
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		—		—		—		—		—		—		Substandard	—		—		—		—		—		—		—		—		—

Commercial	Commercial	$	147,850	$	371,555	$	243,552	$	13,876	$	—	$	—	$	—	$	—	$	776,833	Commercial	$	101,663	$	332,219	$	312,291	$	145,402	$	15,525	$	—	$	4,432	$	—	$	911,532
Pass	Pass	147,850		371,555		238,899		13,876		—		—		—		—		772,180		Pass	101,663		331,298		312,291		145,402		15,525		—		4,432		—		910,611
Special Mention	Special Mention	—		—		4,653		—		—		—		—		—		4,653		Special Mention	—		921		—		—		—		—		—		—		921
Substandard	Substandard	—		—		—		—		—		—		—		—		—		Substandard	—		—		—		—		—		—		—		—		—

Real Estate - 1-4 Family Mortgage	Real Estate - 1-4 Family Mortgage	$	125,762	$	73,169	$	49,283	$	20,751	$	17,571	$	9,480	$	13,409	$	525	$	309,950	Real Estate - 1-4 Family Mortgage	$	86,992	$	180,183	$	67,130	$	43,262	$	24,115	$	29,405	$	26,986	$	854	$	458,927
Primary	Primary	$	7,686	$	6,791	$	2,769	$	3,636	$	3,645	$	747	$	2,901	$	—	$	28,175	Primary	$	7,747	$	12,478	$	6,702	$	2,969	$	4,159	$	4,803	$	6,002	$	—	$	44,860
Pass	Pass	7,686		6,791		2,470		3,636		3,561		731		2,890		—		27,765		Pass	7,538		12,478		6,702		2,848		4,159		4,436		5,991		—		44,152
Special Mention	Special Mention	—		—		117		—		—		—		—		—		117		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		182		—		84		16		11		—		293		Substandard	209		—		—		121		—		367		11		—		708

Home Equity	Home Equity	$	768	$	303	$	—	$	—	$	—	$	—	$	6,300	$	—	$	7,371	Home Equity	$	—	$	1,324	$	—	$	41	$	127	$	—	$	13,817	$	9	$	15,318
Pass	Pass	768		303		—		—		—		—		6,300		—		7,371		Pass	—		1,324		—		41		127		—		13,817		9		15,318
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		—		—		—		—		—		—		Substandard	—		—		—		—		—		—		—		—		—

Rental/Investment																				Rental/Investment	$	41,987	$	100,533	$	51,166	$	29,396	$	19,608	$	24,032	$	6,321	$	845	$	273,888
Pass																				Pass	41,966		100,456		50,958		28,363		19,339		23,306		6,321		845		271,554
Special Mention																				Special Mention	—		—		—		—		—		—		—		—		—
Substandard																				Substandard	21		77		208		1,033		269		726		—		—		2,334

Land Development																				Land Development	$	37,258	$	65,848	$	9,262	$	10,856	$	221	$	570	$	846	$	—	$	124,861
Pass																				Pass	37,258		65,848		8,974		10,832		221		570		846		—		124,549
Special Mention																				Special Mention	—		—		—		—		—		—		—		—		—
Substandard																				Substandard	—		—		288		24		—		—		—		—		312

Real Estate - Commercial Mortgage																				Real Estate - Commercial Mortgage	$	398,640	$	1,095,513	$	790,229	$	608,176	$	304,844	$	578,577	$	137,549	$	19,906	$	3,933,434
Owner-Occupied																				Owner-Occupied	$	121,718	$	302,860	$	266,970	$	197,621	$	146,863	$	219,190	$	55,759	$	7,316	$	1,318,297

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)


	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Pass	121,353		301,595		265,142		196,020		145,137		203,852		55,759		6,347		1,295,205
Special Mention	—		1,191		—		347		—		3,127		—		932		5,597
Substandard	365		74		1,828		1,254		1,726		12,211		—		37		17,495

Non-Owner Occupied	$	260,565	$	749,262	$	507,210	$	400,465	$	152,176	$	356,205	$	72,478	$	12,590	$	2,510,951
Pass	260,361		740,078		507,210		387,131		152,176		292,279		72,478		12,590		2,424,303
Special Mention	—		9,184		—		11,322		—		24,606		—		—		45,112
Substandard	204		—		—		2,012		—		39,320		—		—		41,536

Land Development	$	16,357	$	43,391	$	16,049	$	10,090	$	5,805	$	3,182	$	9,312	$	—	$	104,186
Pass	14,759		43,123		15,713		10,090		5,724		3,182		9,312		—		101,903
Special Mention	—		43		—		—		—		—		—		—		43
Substandard	1,598		225		336		—		81		—		—		—		2,240

Installment loans to individuals	$	73	$	—	$	—	$	37	$	—	$	—	$	—	$	—	$	110
Pass	73		—		—		37		—		—		—		—		110
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total loans subject to risk rating	$	764,739	$	2,059,517	$	1,381,960	$	916,904	$	390,402	$	632,131	$	744,319	$	25,866	$	6,915,838
Pass	761,788		2,046,632		1,371,508		900,273		386,756		550,572		742,129		23,890		6,783,548
Special Mention	89		11,339		—		11,863		272		28,185		601		932		53,281
Substandard	2,862		1,546		10,452		4,768		3,374		53,374		1,589		1,044		79,009


	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
December 31, 2021
Commercial, Financial, Agricultural	$	300,748	$	245,940	$	122,350	$	44,533	$	15,384	$	11,103	$	557,628	$	2,757	$	1,300,443
Pass	299,731		245,657		120,102		43,042		14,603		8,605		553,541		2,002		1,287,283
Special Mention	—		136		1,798		281		605		1,196		651		—		4,667
Substandard	1,017		147		450		1,210		176		1,302		3,436		755		8,493






Real Estate - Construction	$	461,370	$	371,694	$	174,369	$	14,813	$	—	$	—	$	3,769	$	2,428	$	1,028,443
Residential	$	210,734	$	12,598	$	—	$	—	$	—	$	—	$	3,769	$	2,428	$	229,529
Pass	210,734		12,598		—		—		—		—		3,769		2,428		229,529
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Commercial	$	250,636	$	359,096	$	174,369	$	14,813	$	—	$	—	$	—	$	—	$	798,914
Pass	250,636		359,096		174,369		14,813		—		—		—		—		798,914
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Term Loans Amortized Cost Basis by Origination Year
2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total
Loans
Rental/Investment $ 59,238 $ 42,994 $ 23,169 $ 16,598 $ 13,706 $ 8,251 $ 1,017 $ 525 $ 165,498
Pass 59,218 42,646 22,049 16,466 13,515 7,791 1,017 525 163,227
Special Mention — 250 — — — 74 — — 324
Substandard 20 98 1,120 132 191 386 — — 1,947
Land Development $ 58,070 $ 23,081 $ 23,345 $ 517 $ 220 $ 482 $ 3,191 $ — $ 108,906
Pass 58,070 20,687 23,345 517 220 482 3,191 — 106,512
Special Mention — 2,394 — — — — — — 2,394
Substandard — — — — — — — — —
Real Estate - Commercial Mortgage $ 682,955 $ 870,341 $ 674,008 $ 349,402 $ 323,092 $ 440,289 $ 124,028 $ 20,904 $ 3,485,019
Owner-Occupied $ 197,995 $ 283,768 $ 206,047 $ 154,453 $ 129,531 $ 136,496 $ 51,478 $ 9,064 $ 1,168,832
Pass 197,206 281,580 204,259 150,300 123,413 127,970 51,039 7,327 1,143,094
Special Mention — 2,188 248 — 1,806 535 424 1,737 6,938
Substandard 789 — 1,540 4,153 4,312 7,991 15 — 18,800
Non-Owner Occupied $ 458,535 $ 566,698 $ 457,532 $ 189,762 $ 190,987 $ 300,923 $ 66,342 $ 11,840 $ 2,242,619
Pass 456,834 557,835 448,778 176,525 116,126 287,266 66,273 11,840 2,121,477
Special Mention 1,495 8,863 6,739 13,237 55,167 — — — 85,501
Substandard 206 — 2,015 — 19,694 13,657 69 — 35,641
Land Development $ 26,425 $ 19,875 $ 10,429 $ 5,187 $ 2,574 $ 2,870 $ 6,208 $ — $ 73,568
Pass 26,154 17,840 10,429 5,146 2,574 2,870 6,208 — 71,221
Special Mention 271 — — — — — — — 271
Substandard — 2,035 — 41 — — — — 2,076
Installment loans to individuals $ — $ — $ 48 $ — $ — $ — $ — $ — $ 48
Pass — — 48 — — — — — 48
Special Mention — — — — — — — — —
Substandard — — — — — — — — —
Total loans subject to risk rating $ 1,363,684 $ 1,648,315 $ 1,123,545 $ 435,414 $ 363,674 $ 462,889 $ 596,903 $ 29,774 $ 6,024,198
Pass 1,359,890 1,632,249 1,104,005 416,265 281,549 437,529 592,703 27,238 5,851,428
Special Mention 1,766 13,838 14,143 13,527 57,608 1,860 882 1,737 105,361
Substandard 2,028 2,228 5,397 5,622 24,517 23,500 3,318 799 67,409

Term Loans Amortized Cost Basis by Origination Year
2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Total
Loans
December 31, 2020
Commercial, Financial, Agricultural $ 1,448,273 $ 183,627 $ 76,912 $ 36,866 $ 18,124 $ 15,844 $ 255,522 $ 2,449 $ 2,037,617
Pass 1,447,594 180,979 73,325 31,362 16,308 14,626 250,528 1,562 2,016,284
Special Mention 128 1,952 2,091 3,850 1,416 109 187 — 9,733
Substandard 551 696 1,496 1,654 400 1,109 4,807 887 11,600
Real Estate - Construction $ 398,891 $ 266,471 $ 52,520 $ 29,300 $ — $ — $ 13,927 $ — $ 761,109
Residential $ 154,649 $ 9,836 $ 2,114 $ — $ — $ — $ 13,923 $ — $ 180,522
Pass 154,419 9,339 2,114 — — — 13,923 — 179,795
Special Mention — — — — — — — — —
Substandard 230 497 — — — — — — 727
Commercial $ 244,242 $ 256,635 $ 50,406 $ 29,300 $ — $ — $ 4 $ — $ 580,587

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~


		Term Loans Amortized Cost Basis by Origination Year																			Term Loans Amortized Cost Basis by Origination Year
		2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Pass		244,242		251,937		50,406		29,300		—		—		4		—		575,889
Special Mention		—		4,698		—		—		—		—		—		—		4,698
Substandard		—		—		—		—		—		—		—		—		—
																					2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Real Estate - 1-4 Family Mortgage	Real Estate - 1-4 Family Mortgage	$	110,246	$	78,482	$	36,613	$	30,018	$	13,197	$	7,172	$	10,658	$	1,909	$	288,295	Real Estate - 1-4 Family Mortgage	$	205,137	$	83,038	$	60,240	$	30,044	$	28,340	$	8,846	$	25,534	$	941	$	442,120
Primary	Primary	$	9,422	$	6,691	$	3,988	$	4,644	$	371	$	1,060	$	629	$	—	$	26,805	Primary	$	15,599	$	7,698	$	3,662	$	5,985	$	4,150	$	1,066	$	4,727	$	—	$	42,887
Pass	Pass	9,422		5,870		3,988		4,644		371		1,045		629		—		25,969		Pass	15,599		7,698		3,496		5,985		4,066		1,057		4,716		—		42,617
Special Mention	Special Mention	—		125		—		—		—		—		—		—		125		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		696		—		—		—		15		—		—		711		Substandard	—		—		166		—		84		9		11		—		270

Home Equity	Home Equity	$	157	$	184	$	—	$	—	$	—	$	—	$	6,051	$	—	$	6,392	Home Equity	$	1,318	$	—	$	42	$	131	$	—	$	—	$	13,615	$	10	$	15,116
Pass	Pass	157		184		—		—		—		—		6,051		—		6,392		Pass	1,318		—		42		131		—		—		13,615		10		15,116
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		—		—		—		—		—		—		Substandard	—		—		—		—		—		—		—		—		—

Rental/Investment	Rental/Investment	$	50,558	$	32,656	$	27,483	$	25,019	$	12,620	$	5,699	$	1,066	$	557	$	155,658	Rental/Investment	$	111,006	$	61,801	$	33,734	$	23,520	$	23,890	$	7,469	$	5,554	$	931	$	267,905
Pass	Pass	50,371		31,724		26,695		24,872		12,439		5,166		1,066		557		152,890		Pass	110,987		60,855		32,733		23,246		23,708		7,098		5,554		931		265,112
Special Mention	Special Mention	—		—		—		83		77		133		—		—		293		Special Mention	—		249		—		—		—		—		—		—		249
Substandard	Substandard	187		932		788		64		104		400		—		—		2,475		Substandard	19		697		1,001		274		182		371		—		—		2,544

Land Development	Land Development	$	50,109	$	38,951	$	5,142	$	355	$	206	$	413	$	2,912	$	1,352	$	99,440	Land Development	$	77,214	$	13,539	$	22,802	$	408	$	300	$	311	$	1,638	$	—	$	116,212
Pass	Pass	50,109		38,388		5,142		355		203		413		2,912		1,352		98,874		Pass	74,818		13,539		22,769		408		300		311		1,638		—		113,783
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	2,396		—		—		—		—		—		—		—		2,396
Substandard	Substandard	—		563		—		—		3		—		—		—		566		Substandard	—		—		33		—		—		—		—		—		33

Real Estate - Commercial Mortgage	Real Estate - Commercial Mortgage	$	967,746	$	801,083	$	444,205	$	402,110	$	340,774	$	277,789	$	76,115	$	20,845	$	3,330,667	Real Estate - Commercial Mortgage	$	1,168,118	$	836,549	$	680,506	$	344,089	$	298,644	$	376,652	$	147,446	$	21,644	$	3,873,648
Owner-Occupied	Owner-Occupied	$	295,642	$	256,807	$	199,082	$	169,527	$	99,540	$	85,614	$	16,683	$	9,733	$	1,132,628	Owner-Occupied	$	312,031	$	305,686	$	220,057	$	164,345	$	140,265	$	117,767	$	59,126	$	9,748	$	1,329,025
Pass	Pass	293,851		255,206		193,716		163,358		96,128		83,582		16,043		7,896		1,109,780		Pass	310,736		304,555		218,447		161,521		134,410		109,577		59,126		8,036		1,306,408
Special Mention	Special Mention	1,167		847		—		2,067		228		311		—		1,837		6,457		Special Mention	1,210		1,131		—		—		1,733		328		—		1,712		6,114
Substandard	Substandard	624		754		5,366		4,102		3,184		1,721		640		—		16,391		Substandard	85		—		1,610		2,824		4,122		7,862		—		—		16,503

Non-Owner Occupied	Non-Owner Occupied	$	635,232	$	522,998	$	237,075	$	229,304	$	236,347	$	189,077	$	52,456	$	11,112	$	2,113,601	Non-Owner Occupied	$	809,784	$	511,803	$	449,409	$	173,123	$	155,175	$	256,133	$	79,016	$	11,896	$	2,446,339
Pass	Pass	624,289		514,030		237,075		184,673		218,106		175,702		52,456		11,112		2,017,443		Pass	800,348		503,009		436,062		165,843		102,446		242,665		79,016		11,896		2,341,285
Special Mention	Special Mention	9,105		—		—		39,007		4,688		10,788		—		—		63,588		Special Mention	9,235		8,794		11,356		7,280		33,176		8,024		—		—		77,865
Substandard	Substandard	1,838		8,968		—		5,624		13,553		2,587		—		—		32,570		Substandard	201		—		1,991		—		19,553		5,444		—		—		27,189

Land Development	Land Development	$	36,872	$	21,278	$	8,048	$	3,279	$	4,887	$	3,098	$	6,976	$	—	$	84,438	Land Development	$	46,303	$	19,060	$	11,040	$	6,621	$	3,204	$	2,752	$	9,304	$	—	$	98,284
Pass	Pass	34,719		21,278		6,925		3,210		3,274		3,098		6,976		—		79,480		Pass	46,034		17,030		11,040		6,569		3,204		2,752		9,304		—		95,933
Special Mention	Special Mention	—		—		1,123		69		46		—		—		—		1,238		Special Mention	44		—		—		—		—		—		—		—		44
Substandard	Substandard	2,153		—		—		—		1,567		—		—		—		3,720		Substandard	225		2,030		—		52		—		—		—		—		2,307

Installment loans to individuals	Installment loans to individuals	$	74	$	4	$	—	$	—	$	—	$	—	$	—	$	16	$	94	Installment loans to individuals	$	—	$	—	$	42	$	—	$	—	$	—	$	—	$	—	$	42
Pass	Pass	74		4		—		—		—		—		—		16		94		Pass	—		—		42		—		—		—		—		—		42
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		—		—		—		—		—		—		Substandard	—		—		—		—		—		—		—		—		—

Total loans subject to risk rating	Total loans subject to risk rating	$	2,925,230	$	1,329,667	$	610,250	$	498,294	$	372,095	$	300,805	$	356,222	$	25,219	$	6,417,782	Total loans subject to risk rating	$	2,135,373	$	1,537,221	$	1,037,507	$	433,479	$	342,368	$	396,601	$	734,377	$	27,770	$	6,644,696
Pass	Pass	2,909,247		1,308,939		599,386		441,774		346,829		283,632		350,588		22,495		6,262,890		Pass	2,120,941		1,524,037		1,019,102		421,558		282,737		372,065		730,279		25,303		6,496,022
Special Mention	Special Mention	10,400		7,622		3,214		45,076		6,455		11,341		187		1,837		86,132		Special Mention	12,885		10,310		13,154		7,561		35,514		9,548		651		1,712		91,335
Substandard	Substandard	5,583		13,106		7,650		11,444		18,811		5,832		5,447		887		68,760		Substandard	1,547		2,874		5,251		4,360		24,117		14,988		3,447		755		57,339

The following tables present the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented:

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)


	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
March 31, 2022
Commercial, Financial, Agricultural	$	—	$	24	$	—	$	—	$	—	$	4,586	$	29,638	$	—	$	34,248
Performing Loans	—		24		—		—		—		4,586		29,638		—		34,248
Non-Performing Loans	—		—		—		—		—		—		—		—		—





Real Estate - Construction	$	7,060	$	70,624	$	6,079	$	1,631	$	—	$	—	$	—	$	—	$	85,394
Residential	$	7,060	$	70,624	$	6,079	$	1,631	$	—	$	—	$	—	$	—	$	85,394
Performing Loans	7,060		70,624		6,079		1,631		—		—		—		—		85,394
Non-Performing Loans	—		—		—		—		—		—		—		—		—

Commercial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	—		—		—		—		—		—		—		—		—

Real Estate - 1-4 Family Mortgage	$	202,102	$	576,608	$	389,909	$	182,310	$	142,482	$	284,535	$	404,747	$	2,967	$	2,185,660
Primary	$	199,643	$	566,132	$	387,647	$	181,465	$	140,891	$	283,112	$	—	$	—	$	1,758,890
Performing Loans	199,643		565,669		386,148		179,052		136,035		277,478		—		—		1,744,025
Non-Performing Loans	—		463		1,499		2,413		4,856		5,634		—		—		14,865

Home Equity	$	520	$	111	$	—	$	79	$	224	$	460	$	404,747	$	2,967	$	409,108
Performing Loans	520		111		—		79		224		388		403,926		2,413		407,661
Non-Performing Loans	—		—		—		—		—		72		821		554		1,447

Rental/Investment	$	—	$	—	$	—	$	—	$	—	$	229	$	—	$	—	$	229
Performing Loans	—		—		—		—		—		176		—		—		176
Non-Performing Loans	—		—		—		—		—		53		—		—		53

Land Development	$	1,939	$	10,365	$	2,262	$	766	$	1,367	$	734	$	—	$	—	$	17,433
Performing Loans	1,939		10,340		2,172		734		1,367		672		—		—		17,224
Non-Performing Loans	—		25		90		32		—		62		—		—		209

Real Estate - Commercial Mortgage	$	1,004	$	4,940	$	3,204	$	1,785	$	748	$	425	$	—	$	—	$	12,106
Owner-Occupied	$	—	$	—	$	135	$	14	$	—	$	—	$	—	$	—	$	149
Performing Loans	—		—		135		14		—		—		—		—		149
Non-Performing Loans	—		—		—		—		—		—		—		—		—

Non-Owner Occupied	$	—	$	—	$	30	$	—	$	—	$	—	$	—	$	—	$	30
Performing Loans	—		—		30		—		—		—		—		—		30
Non-Performing Loans	—		—		—		—		—		—		—		—		—

Land Development	$	1,004	$	4,940	$	3,039	$	1,771	$	748	$	425	$	—	$	—	$	11,927
Performing Loans	1,004		4,940		3,039		1,755		748		374		—		—		11,860
Non-Performing Loans	—		—		—		16		—		51		—		—		67

Installment loans to individuals	$	13,094	$	36,301	$	11,810	$	20,312	$	6,858	$	3,303	$	13,926	$	40	$	105,644
Performing Loans	12,981		36,285		11,783		20,265		6,848		3,252		13,926		37		105,377
Non-Performing Loans	113		16		27		47		10		51		—		3		267

Total loans not subject to risk rating	$	223,260	$	688,497	$	411,002	$	206,038	$	150,088	$	292,849	$	448,311	$	3,007	$	2,423,052
Performing Loans	223,147		687,993		409,386		203,530		145,222		286,926		447,490		2,450		2,406,144
Non-Performing Loans	113		504		1,616		2,508		4,866		5,923		821		557		16,908

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)


		Term Loans Amortized Cost Basis by Origination Year																			Term Loans Amortized Cost Basis by Origination Year
		2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans			2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
September 30, 2021
December 31, 2021																				December 31, 2021
Commercial, Financial, Agricultural	Commercial, Financial, Agricultural	$	20,672	$	13,972	$	9,042	$	5,886	$	3,437	$	10,986	$	36,502	$	349	$	100,846	Commercial, Financial, Agricultural	$	71	$	—	$	—	$	1	$	—	$	8,983	$	23,464	$	—	$	32,519
Performing Loans	Performing Loans	20,672		13,953		9,042		5,886		3,437		10,986		36,494		349		100,819		Performing Loans	71		—		—		1		—		8,983		23,464		—		32,519
Non-Performing Loans	Non-Performing Loans	—		19		—		—		—		—		8		—		27		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Lease Financing Receivables	Lease Financing Receivables	$	24,603	$	24,360	$	17,486	$	8,496	$	2,535	$	1,735	$	—	$	—	$	79,215	Lease Financing Receivables	$	26,301	$	23,270	$	15,504	$	7,713	$	2,169	$	1,168	$	—	$	—	$	76,125
Performing Loans	Performing Loans	24,603		24,360		17,486		8,496		2,533		1,726		—		—		79,204		Performing Loans	26,301		23,270		15,504		7,713		2,167		1,159		—		—		76,114
Non-Performing Loans	Non-Performing Loans	—		—		—		—		2		9		—		—		11		Non-Performing Loans	—		—		—		—		2		9		—		—		11

Real Estate - Construction	Real Estate - Construction	$	43,491	$	31,599	$	2,666	$	—	$	—	$	—	$	89	$	—	$	77,845	Real Estate - Construction	$	57,283	$	12,561	$	1,615	$	—	$	—	$	—	$	—	$	—	$	71,459
Residential	Residential	$	41,261	$	30,985	$	2,666	$	—	$	—	$	—	$	—	$	—	$	74,912	Residential	$	57,283	$	12,561	$	1,615	$	—	$	—	$	—	$	—	$	—	$	71,459
Performing Loans	Performing Loans	41,261		30,985		2,666		—		—		—		—		—		74,912		Performing Loans	57,283		12,561		1,615		—		—		—		—		—		71,459
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		—		—		—		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Commercial	Commercial	$	2,230	$	614	$	—	$	—	$	—	$	—	$	89	$	—	$	2,933	Commercial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	2,230		614		—		—		—		—		89		—		2,933		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		—		—		—		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Real Estate - 1-4 Family Mortgage	Real Estate - 1-4 Family Mortgage	$	476,276	$	479,523	$	247,128	$	189,253	$	144,872	$	216,510	$	417,620	$	3,264	$	2,174,446	Real Estate - 1-4 Family Mortgage	$	554,483	$	419,252	$	205,014	$	155,535	$	117,619	$	207,381	$	404,293	$	2,776	$	2,066,353
Primary	Primary	$	435,290	$	446,636	$	231,955	$	172,662	$	130,572	$	210,490	$	1,415	$	—	$	1,629,020	Primary	$	542,659	$	415,863	$	203,739	$	153,717	$	116,689	$	206,496	$	—	$	—	$	1,639,163
Performing Loans	Performing Loans	434,913		446,129		229,184		167,927		128,923		208,295		1,415		—		1,616,786		Performing Loans	542,053		414,931		201,273		148,649		114,669		203,416		—		—		1,624,991
Non-Performing Loans	Non-Performing Loans	377		507		2,771		4,735		1,649		2,195		—		—		12,234		Non-Performing Loans	606		932		2,466		5,068		2,020		3,080		—		—		14,172

Home Equity	Home Equity	$	411	$	—	$	123	$	360	$	—	$	580	$	413,191	$	2,824	$	417,489	Home Equity	$	111	$	—	$	79	$	225	$	—	$	508	$	404,293	$	2,776	$	407,992
Performing Loans	Performing Loans	411		—		123		360		—		505		412,695		2,657		416,751		Performing Loans	111		—		79		225		—		435		403,598		2,599		407,047
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		75		496		167		738		Non-Performing Loans	—		—		—		—		—		73		695		177		945

Rental/Investment	Rental/Investment	$	29,306	$	25,081	$	13,641	$	13,893	$	13,045	$	5,037	$	2,668	$	440	$	103,111	Rental/Investment	$	—	$	—	$	99	$	—	$	23	$	218	$	—	$	—	$	340
Performing Loans	Performing Loans	29,306		25,081		13,641		13,893		13,042		4,963		2,668		440		103,034		Performing Loans	—		—		99		—		23		164		—		—		286
Non-Performing Loans	Non-Performing Loans	—		—		—		—		3		74		—		—		77		Non-Performing Loans	—		—		—		—		—		54		—		—		54

Land Development	Land Development	$	11,269	$	7,806	$	1,409	$	2,338	$	1,255	$	403	$	346	$	—	$	24,826	Land Development	$	11,713	$	3,389	$	1,097	$	1,593	$	907	$	159	$	—	$	—	$	18,858
Performing Loans	Performing Loans	11,269		7,806		1,376		2,338		1,176		317		346		—		24,628		Performing Loans	11,688		3,298		1,065		1,593		832		159		—		—		18,635
Non-Performing Loans	Non-Performing Loans	—		—		33		—		79		86		—		—		198		Non-Performing Loans	25		91		32		—		75		—		—		—		223

Real Estate - Commercial Mortgage	Real Estate - Commercial Mortgage	$	74,534	$	68,291	$	57,010	$	41,371	$	35,189	$	23,312	$	9,742	$	430	$	309,879	Real Estate - Commercial Mortgage	$	5,265	$	3,584	$	2,082	$	800	$	468	$	137	$	—	$	—	$	12,336
Owner-Occupied	Owner-Occupied	$	43,335	$	42,497	$	37,434	$	27,126	$	23,562	$	17,031	$	5,182	$	289	$	196,456	Owner-Occupied	$	—	$	136	$	58	$	—	$	—	$	—	$	—	$	—	$	194
Performing Loans	Performing Loans	43,335		42,497		36,964		27,126		23,562		17,031		5,181		289		195,985		Performing Loans	—		136		58		—		—		—		—		—		194
Non-Performing Loans	Non-Performing Loans	—		—		470		—		—		—		1		—		471		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Non-Owner Occupied	Non-Owner Occupied	$	20,903	$	17,143	$	14,725	$	11,041	$	9,657	$	5,015	$	1,891	$	141	$	80,516	Non-Owner Occupied	$	—	$	31	$	—	$	—	$	—	$	—	$	—	$	—	$	31
Performing Loans	Performing Loans	20,903		17,143		14,725		11,041		9,657		4,971		1,888		141		80,469		Performing Loans	—		31		—		—		—		—		—		—		31
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		44		3		—		47		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Land Development	Land Development	$	10,296	$	8,651	$	4,851	$	3,204	$	1,970	$	1,266	$	2,669	$	—	$	32,907	Land Development	$	5,265	$	3,417	$	2,024	$	800	$	468	$	137	$	—	$	—	$	12,111
Performing Loans	Performing Loans	10,296		8,646		4,835		3,204		1,970		1,215		2,669		—		32,835		Performing Loans	5,265		3,417		2,008		800		468		86		—		—		12,044
Non-Performing Loans	Non-Performing Loans	—		5		16		—		—		51		—		—		72		Non-Performing Loans	—		—		16		—		—		51		—		—		67

Installment loans to individuals	Installment loans to individuals	$	37,328	$	21,508	$	26,714	$	8,805	$	2,322	$	2,162	$	10,575	$	37	$	109,451	Installment loans to individuals	$	44,302	$	15,436	$	23,114	$	7,717	$	1,985	$	1,917	$	13,016	$	36	$	107,523
Performing Loans	Performing Loans	37,267		21,503		26,657		8,781		2,294		2,122		10,575		33		109,232		Performing Loans	44,254		15,360		23,035		7,704		1,958		1,890		13,016		36		107,253
Non-Performing Loans	Non-Performing Loans	61		5		57		24		28		40		—		4		219		Non-Performing Loans	48		76		79		13		27		27		—		—		270

Total loans not subject to risk rating	Total loans not subject to risk rating	$	676,904	$	639,253	$	360,046	$	253,811	$	188,355	$	254,705	$	474,528	$	4,080	$	2,851,682	Total loans not subject to risk rating	$	687,705	$	474,103	$	247,329	$	171,766	$	122,241	$	219,586	$	440,773	$	2,812	$	2,366,315
Performing Loans	Performing Loans	676,466		638,717		356,699		249,052		186,594		252,131		474,020		3,909		2,837,588		Performing Loans	687,026		473,004		244,736		166,685		120,117		216,292		440,078		2,635		2,350,573
Non-Performing Loans	Non-Performing Loans	438		536		3,347		4,759		1,761		2,574		508		171		14,094		Non-Performing Loans	679		1,099		2,593		5,081		2,124		3,294		695		177		15,742

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

Term Loans Amortized Cost Basis by Origination Year
2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Total
Loans
December 31, 2020
Commercial, Financial, Agricultural $ 33,805 $ 16,455 $ 10,381 $ 6,396 $ 2,826 $ 7,201 $ 245,485 $ 305 $ 322,854
Performing Loans 33,794 16,343 10,340 6,026 2,748 7,181 245,059 305 321,796
Non-Performing Loans 11 112 41 370 78 20 426 — 1,058
Lease Financing Receivables $ 32,150 $ 25,270 $ 10,999 $ 4,231 $ 1,040 $ 2,172 $ — $ — $ 75,862
Performing Loans 32,150 25,270 10,999 4,231 992 2,172 — — 75,814
Non-Performing Loans — — — — 48 — — — 48
Real Estate - Construction $ 54,918 $ 10,334 $ 295 $ 153 $ — $ — $ 343 $ — $ 66,043
Residential $ 53,108 $ 9,393 $ 295 $ 153 $ — $ — $ 343 $ — $ 63,292
Performing Loans 53,108 9,393 295 153 — — 343 — 63,292
Non-Performing Loans — — — — — — — — —
Commercial $ 1,810 $ 941 $ — $ — $ — $ — $ — $ — $ 2,751
Performing Loans 1,810 941 — — — — — — 2,751
Non-Performing Loans — — — — — — — — —
Real Estate - 1-4 Family Mortgage $ 517,553 $ 344,643 $ 261,735 $ 196,777 $ 105,216 $ 212,214 $ 426,437 $ 3,694 $ 2,068,269
Primary $ 470,034 $ 321,155 $ 239,542 $ 176,926 $ 92,195 $ 207,721 $ 1,758 $ 45 $ 1,509,376
Performing Loans 470,034 318,929 235,816 175,219 91,479 205,530 1,747 45 1,498,799
Non-Performing Loans — 2,226 3,726 1,707 716 2,191 11 — 10,577
Home Equity $ — $ 203 $ 372 $ — $ 45 $ 799 $ 421,838 $ 3,119 $ 426,376
Performing Loans — 203 372 — 45 684 421,516 2,642 425,462
Non-Performing Loans — — — — — 115 322 477 914
Rental/Investment $ 34,079 $ 20,499 $ 18,319 $ 17,758 $ 11,907 $ 3,356 $ 2,330 $ 530 $ 108,778
Performing Loans 34,079 20,404 18,245 17,595 11,901 3,196 2,330 530 108,280
Non-Performing Loans — 95 74 163 6 160 — — 498
Land Development $ 13,440 $ 2,786 $ 3,502 $ 2,093 $ 1,069 $ 338 $ 511 $ — $ 23,739
Performing Loans 13,440 2,786 3,502 2,062 1,069 338 511 — 23,708
Non-Performing Loans — — — 31 — — — — 31
Real Estate - Commercial Mortgage $ 81,953 $ 71,063 $ 56,193 $ 47,013 $ 35,801 $ 15,679 $ 10,772 $ 488 $ 318,962
Owner-Occupied $ 48,814 $ 44,606 $ 36,661 $ 30,266 $ 23,974 $ 11,608 $ 5,919 $ 289 $ 202,137
Performing Loans 48,814 44,344 36,349 30,097 23,885 11,216 5,904 289 200,898
Non-Performing Loans — 262 312 169 89 392 15 — 1,239
Non-Owner Occupied $ 20,483 $ 18,585 $ 14,544 $ 13,821 $ 8,068 $ 3,491 $ 1,999 $ 147 $ 81,138
Performing Loans 20,483 18,460 14,486 13,821 8,068 3,439 1,999 147 80,903
Non-Performing Loans — 125 58 — — 52 — — 235
Land Development $ 12,656 $ 7,872 $ 4,988 $ 2,926 $ 3,759 $ 580 $ 2,854 $ 52 $ 35,687
Performing Loans 12,656 7,872 4,988 2,922 3,759 466 2,854 52 35,569
Non-Performing Loans — — — 4 — 114 — — 118
Installment loans to individuals $ 60,133 $ 57,198 $ 13,704 $ 4,019 $ 2,459 $ 1,535 $ 10,661 $ 59 $ 149,768
Performing Loans 60,081 57,119 13,611 3,986 2,407 1,535 10,661 21 149,421
Non-Performing Loans 52 79 93 33 52 — — 38 347
Total loans not subject to risk rating $ 780,512 $ 524,963 $ 353,307 $ 258,589 $ 147,342 $ 238,801 $ 693,698 $ 4,546 $ 3,001,758
Performing Loans 780,449 522,064 349,003 256,112 146,353 235,757 692,924 4,031 2,986,693
Non-Performing Loans 63 2,899 4,304 2,477 989 3,044 774 515 15,065

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 4 – Purchased Loans

(In Thousands, Except Number of Loans)

For purposes of this Note 4, all references to “loans” mean purchased loans excluding loans held for sale.

The following is a summary of purchased loans as of the dates presented:


		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Commercial, financial, agricultural	Commercial, financial, agricultural	$	114,450	$	176,513	Commercial, financial, agricultural	$	109,368	$	90,308

Real estate – construction:	Real estate – construction:					Real estate – construction:
Residential	Residential	1,288		2,859		Residential	1,259		1,287
Commercial	Commercial	3,705		28,093		Commercial	3,865		3,707
Total real estate – construction	Total real estate – construction	4,993		30,952		Total real estate – construction	5,124		4,994
Real estate – 1-4 family mortgage:	Real estate – 1-4 family mortgage:					Real estate – 1-4 family mortgage:
Primary	Primary	150,944		214,770		Primary	122,063		134,070
Home equity	Home equity	56,692		80,392		Home equity	46,239		51,496
Rental/investment	Rental/investment	22,507		31,928		Rental/investment	18,694		20,229
Land development	Land development	10,204		14,654		Land development	9,396		9,978
Total real estate – 1-4 family mortgage	Total real estate – 1-4 family mortgage	240,347		341,744		Total real estate – 1-4 family mortgage	196,392		215,773
Real estate – commercial mortgage:	Real estate – commercial mortgage:					Real estate – commercial mortgage:
Owner-occupied	Owner-occupied	264,939		323,041		Owner-occupied	220,247		234,132
Non-owner occupied	Non-owner occupied	456,102		552,728		Non-owner occupied	396,135		410,577
Land development	Land development	19,791		29,454		Land development	15,942		18,344
Total real estate – commercial mortgage	Total real estate – commercial mortgage	740,832		905,223		Total real estate – commercial mortgage	632,324		663,053
Installment loans to individuals	Installment loans to individuals	40,322		59,675		Installment loans to individuals	31,361		35,775

Loans	Loans	$	1,140,944	$	1,514,107	Loans	$	974,569	$	1,009,903

In the first quarter of 2022, the Company acquired Southeastern Commercial Finance, LLC. The acquired loans were added to the commercial, financial, and agricultural loan category at their fair value of $28,110 at the date of acquisition. The carrying amount of purchased credit deteriorated (“PCD”) loans at the acquisition date is detailed below.


	Carrying Amount
Purchase price of loans at acquisition	$	6,543
Allowance for credit losses at acquisition	1,648

Par value of acquired loans at acquisition	$	8,191

2221

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Past Due and Nonaccrual Loans

The Company’s policies with respect to placing loans on nonaccrual status or charging off loans, and its accounting for interest on any such loans, are described above in Note 3, “Non Purchased Loans.”

The following tables provide an aging of past due accruing and nonaccruing loans, segregated by class, as of the dates presented:


		Accruing Loans								Nonaccruing Loans											Accruing Loans								Nonaccruing Loans
		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans			30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans
September 30, 2021
March 31, 2022																				March 31, 2022
Commercial, financial, agricultural	Commercial, financial, agricultural	$	183	$	1	$	104,418	$	104,602	$	66	$	1,640	$	8,142	$	9,848	$	114,450	Commercial, financial, agricultural	$	316	$	—	$	100,913	$	101,229	$	203	$	1,996	$	5,940	$	8,139	$	109,368

Real estate – construction:	Real estate – construction:																			Real estate – construction:
Residential	Residential	—		—		1,288		1,288		—		—		—		—		1,288		Residential	—		—		1,259		1,259		—		—		—		—		1,259
Commercial	Commercial	—		—		3,705		3,705		—		—		—		—		3,705		Commercial	—		—		3,865		3,865		—		—		—		—		3,865
Total real estate – construction	Total real estate – construction	—		—		4,993		4,993		—		—		—		—		4,993		Total real estate – construction	—		—		5,124		5,124		—		—		—		—		5,124
Real estate – 1-4 family mortgage:	Real estate – 1-4 family mortgage:																			Real estate – 1-4 family mortgage:
Primary	Primary	639		—		145,333		145,972		428		2,360		2,184		4,972		150,944		Primary	1,224		—		115,600		116,824		981		1,706		2,552		5,239		122,063
Home equity	Home equity	490		—		54,899		55,389		—		813		490		1,303		56,692		Home equity	297		—		45,187		45,484		97		265		393		755		46,239
Rental/investment	Rental/investment	148		26		22,231		22,405		—		54		48		102		22,507		Rental/investment	—		—		18,635		18,635		—		—		59		59		18,694
Land development	Land development	75		—		10,117		10,192		—		—		12		12		10,204		Land development	75		—		9,321		9,396		—		—		—		—		9,396
Total real estate – 1-4 family mortgage	Total real estate – 1-4 family mortgage	1,352		26		232,580		233,958		428		3,227		2,734		6,389		240,347		Total real estate – 1-4 family mortgage	1,596		—		188,743		190,339		1,078		1,971		3,004		6,053		196,392
Real estate – commercial mortgage:	Real estate – commercial mortgage:																			Real estate – commercial mortgage:
Owner-occupied	Owner-occupied	624		—		262,380		263,004		—		291		1,644		1,935		264,939		Owner-occupied	314		—		217,850		218,164		—		138		1,945		2,083		220,247
Non-owner occupied	Non-owner occupied	—		—		448,283		448,283		—		—		7,819		7,819		456,102		Non-owner occupied	54		—		393,144		393,198		2,931		—		6		2,937		396,135
Land development	Land development	167		—		19,372		19,539		—		118		134		252		19,791		Land development	—		38		15,786		15,824		—		—		118		118		15,942
Total real estate – commercial mortgage	Total real estate – commercial mortgage	791		—		730,035		730,826		—		409		9,597		10,006		740,832		Total real estate – commercial mortgage	368		38		626,780		627,186		2,931		138		2,069		5,138		632,324
Installment loans to individuals	Installment loans to individuals	871		47		39,155		40,073		4		23		222		249		40,322		Installment loans to individuals	1,107		—		30,162		31,269		16		—		76		92		31,361

Loans, net of unearned income	Loans, net of unearned income	$	3,197	$	74	$	1,111,181	$	1,114,452	$	498	$	5,299	$	20,695	$	26,492	$	1,140,944	Loans, net of unearned income	$	3,387	$	38	$	951,722	$	955,147	$	4,228	$	4,105	$	11,089	$	19,422	$	974,569

2322

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Notes to Consolidated Financial Statements (Unaudited)


		Accruing Loans								Nonaccruing Loans											Accruing Loans								Nonaccruing Loans
		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans			30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		30-89 Days Past Due		90 Days or More Past Due		Current Loans		Total Loans		Total Loans
December 31, 2020
December 31, 2021																				December 31, 2021
Commercial, financial, agricultural	Commercial, financial, agricultural	$	818	$	101	$	163,658	$	164,577	$	74	$	2,024	$	9,838	$	11,936	$	176,513	Commercial, financial, agricultural	$	122	$	—	$	82,918	$	83,040	$	42	$	1,618	$	5,608	$	7,268	$	90,308

Real estate – construction:	Real estate – construction:																			Real estate – construction:
Residential	Residential	—		—		2,859		2,859		—		—		—		—		2,859		Residential	—		—		1,287		1,287		—		—		—		—		1,287
Commercial	Commercial	—		—		28,093		28,093		—		—		—		—		28,093		Commercial	—		—		3,707		3,707		—		—		—		—		3,707
Total real estate – construction	Total real estate – construction	—		—		30,952		30,952		—		—		—		—		30,952		Total real estate – construction	—		—		4,994		4,994		—		—		—		—		4,994
Real estate – 1-4 family mortgage:	Real estate – 1-4 family mortgage:																			Real estate – 1-4 family mortgage:
Primary	Primary	2,394		74		206,635		209,103		687		2,799		2,181		5,667		214,770		Primary	1,042		36		127,820		128,898		257		2,225		2,690		5,172		134,070
Home equity	Home equity	294		43		78,739		79,076		4		674		638		1,316		80,392		Home equity	149		—		50,573		50,722		—		373		401		774		51,496
Rental/investment	Rental/investment	180		14		30,931		31,125		—		724		79		803		31,928		Rental/investment	20		—		20,105		20,125		26		—		78		104		20,229
Land development	Land development	109		—		14,231		14,340		—		—		314		314		14,654		Land development	—		—		9,978		9,978		—		—		—		—		9,978
Total real estate – 1-4 family mortgage	Total real estate – 1-4 family mortgage	2,977		131		330,536		333,644		691		4,197		3,212		8,100		341,744		Total real estate – 1-4 family mortgage	1,211		36		208,476		209,723		283		2,598		3,169		6,050		215,773
Real estate – commercial mortgage:	Real estate – commercial mortgage:																			Real estate – commercial mortgage:
Owner-occupied	Owner-occupied	2,511		—		317,997		320,508		193		447		1,893		2,533		323,041		Owner-occupied	1,511		323		230,305		232,139		—		289		1,704		1,993		234,132
Non-owner occupied	Non-owner occupied	207		—		544,694		544,901		7,682		—		145		7,827		552,728		Non-owner occupied	—		—		407,639		407,639		—		—		2,938		2,938		410,577
Land development	Land development	112		—		28,962		29,074		—		164		216		380		29,454		Land development	—		—		18,218		18,218		—		—		126		126		18,344
Total real estate – commercial mortgage	Total real estate – commercial mortgage	2,830		—		891,653		894,483		7,875		611		2,254		10,740		905,223		Total real estate – commercial mortgage	1,511		323		656,162		657,996		—		289		4,768		5,057		663,053
Installment loans to individuals	Installment loans to individuals	2,026		35		57,339		59,400		31		136		108		275		59,675		Installment loans to individuals	839		8		34,690		35,537		15		11		212		238		35,775

Loans, net of unearned income	Loans, net of unearned income	$	8,651	$	267	$	1,474,138	$	1,483,056	$	8,671	$	6,968	$	15,412	$	31,051	$	1,514,107	Loans, net of unearned income	$	3,683	$	367	$	987,240	$	991,290	$	340	$	4,516	$	13,757	$	18,613	$	1,009,903

There ~~was~~were no restructured loans contractually 90 days past due or more and still accruing at ~~September 30, 2021 and 1 restructured loan in the aggregate amount of $40 contractually 90 days past due~~March 31, 2022 or ~~more and still accruing at September 30, 2020.~~March 31, 2021. The outstanding balance of restructured loans on nonaccrual status was ~~$17,726~~$9,944 and ~~$7,775~~19,140 at ~~September 30,~~March 31, 2022 and March 31, 2021, ~~and September 30, 2020,~~ respectively.

Restructured Loans

An explanation of what constitutes a “restructured loan,” and management’s analysis in determining whether to restructure a loan, are described above in Note 3, “Non Purchased Loans.”

Number of
Loans Pre-
Modification
Outstanding
Recorded
Investment Post-
Modification
Outstanding
Recorded
Investment
Three months ended September 30, 2021
Real estate – 1-4 family mortgage:
Primary 1 164 164
Three months ended September 30, 2020
Real estate – 1-4 family mortgage:
Primary 2 $ 44 $ 44
Real estate – commercial mortgage:
Owner-occupied 4 3,104 2,844
Total 6 $ 3,148 $ 2,888



	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Three months ended March 31, 2022






Real estate – 1-4 family mortgage:



Land development	3	$	98	$	94








Three months ended March 31, 2021
Commercial, financial, agricultural	1	$	135	$	135

With respect to loans that were restructured during the three months ended March 31, 2022 and March 31, 2021, none have subsequently defaulted as of the date of this report.

2423

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Notes to Consolidated Financial Statements (Unaudited)

Number of
Loans Pre-
Modification
Outstanding
Recorded
Investment Post-
Modification
Outstanding
Recorded
Investment
Nine months ended September 30, 2021
Commercial, financial, agricultural 1 $ 135 $ 135
Real estate – 1-4 family mortgage:
Primary 2 1,026 1,026
Total 3 $ 1,161 $ 1,161
Nine months ended September 30, 2020
Commercial, financial, agricultural 1 $ 1,029 $ 1,031
Real estate – 1-4 family mortgage:
Primary 4 334 227
Home equity 1 159 162
Total real estate – 1-4 family mortgage 5 493 389
Real estate – commercial mortgage:
Owner-occupied 5 3,173 2,913
Non-owner occupied 1 542 544
Total real estate – commercial mortgage 6 3,715 3,457
Installment loans to individuals 1 25 19
Total 13 $ 5,262 $ 4,896

With respect to loans that were restructured during the nine months ended September 30, 2021, none have subsequently defaulted as of the date of this report. With respect to loans that were restructured during the nine months ended September 30, 2020, $1,101 have subsequently defaulted, and remain outstanding, as of the date of this report.

Changes in the Company’s restructured loans are set forth in the table below:


		Number of Loans	Recorded Investment			Number of Loans	Recorded Investment
Totals at January 1, 2021		48	$	8,687
Totals at January 1, 2022					Totals at January 1, 2022	38	$	5,609
Additional advances or loans with concessions	Additional advances or loans with concessions	3	1,411		Additional advances or loans with concessions	3	110
Reclassified as performing restructured loan	Reclassified as performing restructured loan	2	115		Reclassified as performing restructured loan	3	302
Reductions due to:	Reductions due to:				Reductions due to:
Reclassified to nonperforming loans	Reclassified to nonperforming loans	(4)	(2,485)		Reclassified to nonperforming loans	(2)	(41)
Paid in full	Paid in full	(5)	(1,310)		Paid in full	(2)	(1,596)
Charge-offs	Charge-offs	(1)	(205)		Charge-offs	—	—

Principal paydowns	Principal paydowns	—	(221)		Principal paydowns	—	(44)

Totals at September 30, 2021		43	$	5,992
Totals at March 31, 2022					Totals at March 31, 2022	40	$	4,340

The allowance for credit losses attributable to restructured loans was ~~$111~~$69 and ~~$491~~$167 at ~~September 30,~~March 31, 2022 and March 31, 2021, ~~and September 30, 2020,~~ respectively. The Company had ~~$2 and $539 in~~no remaining availability under commitments to lend additional funds on these restructured loans at ~~September 30, 2021 and September 30, 2020, respectively.~~March 31, 2022, as compared to $153 in remaining availability at March 31, 2021.

As discussed in Note 3, “Non Purchased Loans,” the Company implemented a loan deferral program in response to the COVID-19 pandemic. As of September 30, 2021, the Company had 11 loans with total balances of approximately $360 remaining on deferral. Under the applicable guidance, none of these loans were considered “restructured loans.”

2524

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Credit Quality

A discussion of the Company’s policies regarding internal risk-rating of loans is discussed above in Note 3, “Non Purchased Loans.” The following tables present the Company’s loan portfolio by year of origination and internal risk-rating grades as of the dates presented:


		Term Loans Amortized Cost Basis by Origination Year																			Term Loans Amortized Cost Basis by Origination Year
		2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans			2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
September 30, 2021
March 31, 2022																				March 31, 2022
Commercial, Financial, Agricultural	Commercial, Financial, Agricultural	$	—	$	—	$	663	$	15,971	$	14,278	$	25,957	$	47,190	$	2,285	$	106,344	Commercial, Financial, Agricultural	$	—	$	—	$	—	$	629	$	6,149	$	33,798	$	67,658	$	1,134	$	109,368
Pass	Pass	—		—		663		14,210		9,602		18,894		42,695		898		86,962		Pass	—		—		—		629		5,569		25,590		66,049		740		98,577
Special Mention	Special Mention	—		—		—		254		—		—		—		—		254		Special Mention	—		—		—		—		239		—		—		—		239
Substandard	Substandard	—		—		—		1,507		4,676		7,063		4,495		1,387		19,128		Substandard	—		—		—		—		341		8,208		1,609		394		10,552

Real Estate - Construction	Real Estate - Construction	$	—	$	—	$	—	$	180	$	—	$	4,392	$	—	$	—	$	4,572	Real Estate - Construction	$	—	$	—	$	—	$	—	$	575	$	4,549	$	—	$	—	$	5,124
Residential	Residential	$	—	$	—	$	—	$	180	$	—	$	687	$	—	$	—	$	867	Residential	$	—	$	—	$	—	$	—	$	575	$	684	$	—	$	—	$	1,259
Pass	Pass	—		—		—		180		—		687		—		—		867		Pass	—		—		—		—		575		684		—		—		1,259
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		—		—		—		—		—		—		Substandard	—		—		—		—		—		—		—		—		—

Commercial	Commercial	$	—	$	—	$	—	$	—	$	—	$	3,705	$	—	$	—	$	3,705	Commercial	$	—	$	—	$	—	$	—	$	—	$	3,865	$	—	$	—	$	3,865
Pass	Pass	—		—		—		—		—		3,705		—		—		3,705		Pass	—		—		—		—		—		3,865		—		—		3,865
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		—		—		—		—		—		—		Substandard	—		—		—		—		—		—		—		—		—

Real Estate - 1-4 Family Mortgage	Real Estate - 1-4 Family Mortgage	$	—	$	—	$	—	$	11,974	$	4,477	$	26,442	$	930	$	212	$	44,035	Real Estate - 1-4 Family Mortgage	$	—	$	—	$	—	$	152	$	9,106	$	32,889	$	903	$	191	$	43,241
Primary	Primary	$	—	$	—	$	—	$	4,205	$	2,542	$	12,861	$	—	$	—	$	19,608	Primary	$	—	$	—	$	—	$	35	$	2,317	$	12,126	$	158	$	—	$	14,636
Pass	Pass	—		—		—		4,205		2,456		9,777		—		—		16,438		Pass	—		—		—		35		2,317		9,148		158		—		11,658
Special Mention	Special Mention	—		—		—		—		—		61		—		—		61		Special Mention	—		—		—		—		—		56		—		—		56
Substandard	Substandard	—		—		—		—		86		3,023		—		—		3,109		Substandard	—		—		—		—		—		2,922		—		—		2,922

Home Equity	Home Equity	$	—	$	—	$	—	$	—	$	—	$	—	$	693	$	212	$	905	Home Equity	$	—	$	—	$	—	$	—	$	—	$	38	$	590	$	191	$	819
Pass	Pass	—		—		—		—		—		—		269		—		269		Pass	—		—		—		—		—		38		590		—		628
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		—		—		—		424		212		636		Substandard	—		—		—		—		—		—		—		191		191

Rental/Investment	Rental/Investment	$	—	$	—	$	—	$	815	$	1,818	$	11,358	$	237	$	—	$	14,228	Rental/Investment	$	—	$	—	$	—	$	117	$	314	$	18,108	$	155	$	—	$	18,694
Pass	Pass	—		—		—		815		1,818		10,440		87		—		13,160		Pass	—		—		—		117		314		17,367		5		—		17,803
Special Mention	Special Mention	—		—		—		—		—		40		—		—		40		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		—		—		878		150		—		1,028		Substandard	—		—		—		—		—		741		150		—		891

Land Development	Land Development	$	—	$	—	$	—	$	6,954	$	117	$	2,223	$	—	$	—	$	9,294	Land Development	$	—	$	—	$	—	$	—	$	6,475	$	2,617	$	—	$	—	$	9,092
Pass	Pass	—		—		—		6,954		86		820		—		—		7,860		Pass	—		—		—		—		6,475		1,285		—		—		7,760
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		—		31		1,403		—		—		1,434		Substandard	—		—		—		—		—		1,332		—		—		1,332

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)


	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Real Estate - Commercial Mortgage	$	—	$	—	$	—	$	322	$	49,086	$	566,330	$	1,758	$	14,136	$	631,632
Owner-Occupied	$	—	$	—	$	—	$	—	$	13,054	$	206,267	$	926	$	—	$	220,247
Pass	—		—		—		—		13,054		189,182		926		—		203,162
Special Mention	—		—		—		—		—		1,918		—		—		1,918
Substandard	—		—		—		—		—		15,167		—		—		15,167

Non-Owner Occupied	$	—	$	—	$	—	$	322	$	35,628	$	345,803	$	246	$	14,136	$	396,135
Pass	—		—		—		322		19,250		311,334		246		4,281		335,433
Special Mention	—		—		—		—		16,372		—		—		—		16,372
Substandard	—		—		—		—		6		34,469		—		9,855		44,330

Land Development	$	—	$	—	$	—	$	—	$	404	$	14,260	$	586	$	—	$	15,250
Pass	—		—		—		—		404		8,446		586		—		9,436
Special Mention	—		—		—		—		—		5,083		—		—		5,083
Substandard	—		—		—		—		—		731		—		—		731

Installment loans to individuals	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Pass	—		—		—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Total loans subject to risk rating	$	—	$	—	$	—	$	1,103	$	64,916	$	637,566	$	70,319	$	15,461	$	789,365
Pass	—		—		—		1,103		47,958		566,939		68,560		5,021		689,581
Special Mention	—		—		—		—		16,611		7,057		—		—		23,668
Substandard	—		—		—		—		347		63,570		1,759		10,440		76,116


	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
December 31, 2021
Commercial, Financial, Agricultural	$	—	$	—	$	646	$	12,199	$	12,247	$	25,562	$	38,328	$	1,326	$	90,308
Pass	—		—		646		11,612		8,918		18,877		37,555		899		78,507
Special Mention	—		—		—		246		—		—		—		—		246
Substandard	—		—		—		341		3,329		6,685		773		427		11,555






Real Estate - Construction	$	—	$	—	$	—	$	601	$	—	$	4,393	$	—	$	—	$	4,994
Residential	$	—	$	—	$	—	$	601	$	—	$	686	$	—	$	—	$	1,287
Pass	—		—		—		601		—		686		—		—		1,287
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Commercial	$	—	$	—	$	—	$	—	$	—	$	3,707	$	—	$	—	$	3,707
Pass	—		—		—		—		—		3,707		—		—		3,707
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Term Loans Amortized Cost Basis by Origination Year
2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total
Loans
Real Estate - Commercial Mortgage $ — $ — $ — $ 52,761 $ 146,704 $ 481,098 $ 9,224 $ 14,371 $ 704,158
Owner-Occupied $ — $ — $ — $ 14,063 $ 32,268 $ 191,688 $ 4,763 $ — $ 242,782
Pass — — — 14,063 28,406 168,961 4,754 — 216,184
Special Mention — — — — 1,568 1,701 — — 3,269
Substandard — — — — 2,294 21,026 9 — 23,329
Non-Owner Occupied $ — $ — $ — $ 36,795 $ 112,866 $ 277,021 $ 4,326 $ 14,371 $ 445,379
Pass — — — 20,420 105,055 236,855 4,326 4,415 371,071
Special Mention — — — 16,367 — 7,949 — — 24,316
Substandard — — — 8 7,811 32,217 — 9,956 49,992
Land Development $ — $ — $ — $ 1,903 $ 1,570 $ 12,389 $ 135 $ — $ 15,997
Pass — — — 1,903 1,570 6,316 135 — 9,924
Special Mention — — — — — 5,197 — — 5,197
Substandard — — — — — 876 — — 876
Installment loans to individuals $ — $ — $ — $ — $ — $ — $ — $ — $ —
Pass — — — — — — — — —
Special Mention — — — — — — — — —
Substandard — — — — — — — — —
Total loans subject to risk rating $ — $ — $ 663 $ 80,886 $ 165,459 $ 537,889 $ 57,344 $ 16,868 $ 859,109
Pass — — 663 62,750 148,993 456,455 52,266 5,313 726,440
Special Mention — — — 16,621 1,568 14,948 — — 33,137
Substandard — — — 1,515 14,898 66,486 5,078 11,555 99,532

Term Loans Amortized Cost Basis by Origination Year
2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Total
Loans
December 31, 2020
Commercial, Financial, Agricultural $ — $ 711 $ 28,242 $ 27,222 $ 22,377 $ 20,759 $ 64,563 $ 1,788 $ 165,662
Pass — 711 24,211 20,930 17,240 16,880 56,736 409 137,117
Special Mention — — 357 97 104 — — — 558
Substandard — — 3,674 6,195 5,033 3,879 7,827 1,379 27,987
Real Estate - Construction $ — $ — $ 10,522 $ 9,228 $ 10,781 $ — $ — $ — $ 30,531
Residential $ — $ — $ 1,543 $ 211 $ 684 $ — $ — $ — $ 2,438
Pass — — 1,543 211 684 — — — 2,438
Special Mention — — — — — — — — —
Substandard — — — — — — — — —
Commercial $ — $ — $ 8,979 $ 9,017 $ 10,097 $ — $ — $ — $ 28,093
Pass — — 8,979 9,017 10,097 — — — 28,093
Special Mention — — — — — — — — —
Substandard — — — — — — — — —

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~


		Term Loans Amortized Cost Basis by Origination Year																			Term Loans Amortized Cost Basis by Origination Year
		2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans			2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Real Estate - 1-4 Family Mortgage	Real Estate - 1-4 Family Mortgage	$	—	$	—	$	14,022	$	7,126	$	1,112	$	38,747	$	957	$	253	$	62,217	Real Estate - 1-4 Family Mortgage	$	—	$	—	$	152	$	10,151	$	2,781	$	32,841	$	1,476	$	201	$	47,602
Primary	Primary	$	—	$	—	$	6,873	$	3,212	$	595	$	17,223	$	249	$	—	$	28,152	Primary	$	—	$	—	$	34	$	2,485	$	1,367	$	12,336	$	161	$	—	$	16,383
Pass	Pass	—		—		5,556		3,212		594		12,665		249		—		22,276		Pass	—		—		34		2,485		1,367		9,408		161		—		13,455
Special Mention	Special Mention	—		—		—		—		—		1,120		—		—		1,120		Special Mention	—		—		—		—		—		59		—		—		59
Substandard	Substandard	—		—		1,317		—		1		3,438		—		—		4,756		Substandard	—		—		—		—		—		2,869		—		—		2,869

Home Equity	Home Equity	$	—	$	—	$	—	$	—	$	—	$	—	$	697	$	253	$	950	Home Equity	$	—	$	—	$	—	$	—	$	—	$	42	$	1,087	$	201	$	1,330
Pass	Pass	—		—		—		—		—		—		59		—		59		Pass	—		—		—		—		—		42		717		—		759
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		—		—		—		638		253		891		Substandard	—		—		—		—		—		—		370		201		571

Rental/Investment	Rental/Investment	$	—	$	—	$	—	$	1,883	$	232	$	18,275	$	9	$	—	$	20,399	Rental/Investment	$	—	$	—	$	118	$	804	$	1,273	$	17,806	$	228	$	—	$	20,229
Pass	Pass	—		—		—		1,883		232		16,139		9		—		18,263		Pass	—		—		118		804		1,273		17,035		77		—		19,307
Special Mention	Special Mention	—		—		—		—		—		44		—		—		44		Special Mention	—		—		—		—		—		38		—		—		38
Substandard	Substandard	—		—		—		—		—		2,092		—		—		2,092		Substandard	—		—		—		—		—		733		151		—		884

Land Development	Land Development	$	—	$	—	$	7,149	$	2,031	$	285	$	3,249	$	2	$	—	$	12,716	Land Development	$	—	$	—	$	—	$	6,862	$	141	$	2,657	$	—	$	—	$	9,660
Pass	Pass	—		—		7,149		2,009		285		1,793		2		—		11,238		Pass	—		—		—		6,862		111		1,249		—		—		8,222
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		22		—		1,456		—		—		1,478		Substandard	—		—		—		—		30		1,408		—		—		1,438

Real Estate - Commercial Mortgage	Real Estate - Commercial Mortgage	$	—	$	—	$	76,557	$	153,960	$	171,487	$	435,073	$	22,631	$	4,688	$	864,396	Real Estate - Commercial Mortgage	$	—	$	—	$	325	$	50,519	$	123,254	$	467,983	$	5,912	$	14,324	$	662,317
Owner-Occupied	Owner-Occupied	$	—	$	—	$	15,001	$	32,567	$	61,568	$	181,007	$	9,723	$	2	$	299,868	Owner-Occupied	$	—	$	—	$	—	$	13,344	$	17,621	$	200,111	$	3,056	$	—	$	234,132
Pass	Pass	—		—		15,001		29,276		43,962		161,790		5,808		—		255,837		Pass	—		—		—		13,344		13,888		182,779		3,056		—		213,067
Special Mention	Special Mention	—		—		—		—		9,670		—		—		—		9,670		Special Mention	—		—		—		—		1,553		394		—		—		1,947
Substandard	Substandard	—		—		—		3,291		7,936		19,217		3,915		2		34,361		Substandard	—		—		—		—		2,180		16,938		—		—		19,118

Non-Owner Occupied	Non-Owner Occupied	$	—	$	—	$	55,962	$	117,592	$	107,004	$	242,249	$	12,720	$	4,686	$	540,213	Non-Owner Occupied	$	—	$	—	$	325	$	35,887	$	103,739	$	254,080	$	2,222	$	14,324	$	410,577
Pass	Pass	—		—		37,002		109,910		83,738		221,423		6,431		—		458,504		Pass	—		—		325		19,510		100,682		222,048		2,222		4,418		349,205
Special Mention	Special Mention	—		—		2,591		—		5,302		2,622		—		—		10,515		Special Mention	—		—		—		16,370		—		359		—		—		16,729
Substandard	Substandard	—		—		16,369		7,682		17,964		18,204		6,289		4,686		71,194		Substandard	—		—		—		7		3,057		31,673		—		9,906		44,643

Land Development	Land Development	$	—	$	—	$	5,594	$	3,801	$	2,915	$	11,817	$	188	$	—	$	24,315	Land Development	$	—	$	—	$	—	$	1,288	$	1,894	$	13,792	$	634	$	—	$	17,608
Pass	Pass	—		—		5,594		3,801		2,780		4,962		188		—		17,325		Pass	—		—		—		1,288		1,894		7,904		634		—		11,720
Special Mention	Special Mention	—		—		—		—		—		5,438		—		—		5,438		Special Mention	—		—		—		—		—		5,141		—		—		5,141
Substandard	Substandard	—		—		—		—		135		1,417		—		—		1,552		Substandard	—		—		—		—		—		747		—		—		747

Installment loans to individuals	Installment loans to individuals	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	Installment loans to individuals	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Pass	Pass	—		—		—		—		—		—		—		—		—		Pass	—		—		—		—		—		—		—		—		—
Special Mention	Special Mention	—		—		—		—		—		—		—		—		—		Special Mention	—		—		—		—		—		—		—		—		—
Substandard	Substandard	—		—		—		—		—		—		—		—		—		Substandard	—		—		—		—		—		—		—		—		—

Total loans subject to risk rating	Total loans subject to risk rating	$	—	$	711	$	129,343	$	197,536	$	205,757	$	494,579	$	88,151	$	6,729	$	1,122,806	Total loans subject to risk rating	$	—	$	—	$	1,123	$	73,470	$	138,282	$	530,779	$	45,716	$	15,851	$	805,221
Pass	Pass	—		711		105,035		180,249		159,612		435,652		69,482		409		951,150		Pass	—		—		1,123		56,506		128,133		463,735		44,422		5,317		699,236
Special Mention	Special Mention	—		—		2,948		97		15,076		9,224		—		—		27,345		Special Mention	—		—		—		16,616		1,553		5,991		—		—		24,160
Substandard	Substandard	—		—		21,360		17,190		31,069		49,703		18,669		6,320		144,311		Substandard	—		—		—		348		8,596		61,053		1,294		10,534		81,825

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The following tables present the performing status of the Company’s loan portfolio not subject to risk rating by origination date:


		Term Loans Amortized Cost Basis by Origination Year																			Term Loans Amortized Cost Basis by Origination Year
		2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans			2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
September 30, 2021
March 31, 2022																				March 31, 2022
Commercial, Financial, Agricultural	Commercial, Financial, Agricultural	$	—	$	—	$	—	$	364	$	126	$	2,457	$	4,949	$	210	$	8,106	Commercial, Financial, Agricultural	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		—		—		364		126		2,457		4,949		210		8,106		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		—		—		—		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Real Estate - Construction	Real Estate - Construction	$	—	$	—	$	—	$	421	$	—	$	—	$	—	$	—	$	421	Real Estate - Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential	Residential	$	—	$	—	$	—	$	421	$	—	$	—	$	—	$	—	$	421	Residential	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		—		—		421		—		—		—		—		421		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		—		—		—		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Commercial	Commercial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	Commercial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		—		—		—		—		—		—		—		—		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		—		—		—		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Real Estate - 1-4 Family Mortgage	Real Estate - 1-4 Family Mortgage	$	—	$	—	$	359	$	1,741	$	22,792	$	120,168	$	49,654	$	1,598	$	196,312	Real Estate - 1-4 Family Mortgage	$	—	$	—	$	—	$	200	$	1,079	$	110,964	$	39,583	$	1,325	$	153,151
Primary	Primary	$	—	$	—	$	240	$	1,195	$	20,320	$	109,331	$	164	$	86	$	131,336	Primary	$	—	$	—	$	—	$	200	$	538	$	106,613	$	—	$	76	$	107,427
Performing Loans	Performing Loans	—		—		240		1,085		19,715		105,326		164		21		126,551		Performing Loans	—		—		—		200		429		101,584		—		76		102,289
Non-Performing Loans	Non-Performing Loans	—		—		—		110		605		4,005		—		65		4,785		Non-Performing Loans	—		—		—		—		109		5,029		—		—		5,138

Home Equity	Home Equity	$	—	$	—	$	—	$	546	$	2,278	$	1,966	$	49,485	$	1,512	$	55,787	Home Equity	$	—	$	—	$	—	$	—	$	541	$	4,047	$	39,583	$	1,249	$	45,420
Performing Loans	Performing Loans	—		—		—		546		2,278		1,890		48,906		1,077		54,697		Performing Loans	—		—		—		—		541		3,994		39,011		1,120		44,666
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		76		579		435		1,090		Non-Performing Loans	—		—		—		—		—		53		572		129		754

Rental/Investment	Rental/Investment	$	—	$	—	$	119	$	—	$	121	$	8,034	$	5	$	—	$	8,279	Rental/Investment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		—		119		—		121		8,034		5		—		8,279		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		—		—		—		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Land Development	Land Development	$	—	$	—	$	—	$	—	$	73	$	837	$	—	$	—	$	910	Land Development	$	—	$	—	$	—	$	—	$	—	$	304	$	—	$	—	$	304
Performing Loans	Performing Loans	—		—		—		—		73		837		—		—		910		Performing Loans	—		—		—		—		—		304		—		—		304
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		—		—		—		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Real Estate - Commercial Mortgage	Real Estate - Commercial Mortgage	$	—	$	—	$	328	$	1,400	$	954	$	32,755	$	1,237	$	—	$	36,674	Real Estate - Commercial Mortgage	$	—	$	—	$	—	$	—	$	145	$	547	$	—	$	—	$	692
Owner-Occupied	Owner-Occupied	$	—	$	—	$	—	$	860	$	573	$	19,864	$	860	$	—	$	22,157	Owner-Occupied	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		—		—		860		573		19,848		860		—		22,141		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		16		—		—		16		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Non-Owner Occupied	Non-Owner Occupied	$	—	$	—	$	328	$	391	$	—	$	9,735	$	269	$	—	$	10,723	Non-Owner Occupied	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		—		328		391		—		9,735		269		—		10,723		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		—		—		—		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Land Development	Land Development	$	—	$	—	$	—	$	149	$	381	$	3,156	$	108	$	—	$	3,794	Land Development	$	—	$	—	$	—	$	—	$	145	$	547	$	—	$	—	$	692
Performing Loans	Performing Loans	—		—		—		149		381		3,156		108		—		3,794		Performing Loans	—		—		—		—		145		547		—		—		692
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		—		—		—		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Installment loans to individuals	Installment loans to individuals	$	—	$	—	$	—	$	23,428	$	10,892	$	4,306	$	1,654	$	40	$	40,320	Installment loans to individuals	$	—	$	—	$	—	$	—	$	17,963	$	11,983	$	1,391	$	24	$	31,361
Performing Loans	Performing Loans	—		—		—		23,373		10,876		4,101		1,644		30		40,024		Performing Loans	—		—		—		—		17,959		11,912		1,378		20		31,269
Non-Performing Loans	Non-Performing Loans	—		—		—		55		16		205		10		10		296		Non-Performing Loans	—		—		—		—		4		71		13		4		92

Total loans not subject to risk rating	Total loans not subject to risk rating	$	—	$	—	$	687	$	27,354	$	34,764	$	159,686	$	57,494	$	1,848	$	281,833	Total loans not subject to risk rating	$	—	$	—	$	—	$	200	$	19,187	$	123,494	$	40,974	$	1,349	$	185,204
Performing Loans	Performing Loans	—		—		687		27,189		34,143		155,384		56,905		1,338		275,646		Performing Loans	—		—		—		200		19,074		118,341		40,389		1,216		179,220
Non-Performing Loans	Non-Performing Loans	—		—		—		165		621		4,302		589		510		6,187		Non-Performing Loans	—		—		—		—		113		5,153		585		133		5,984

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Notes to Consolidated Financial Statements (Unaudited)


		Term Loans Amortized Cost Basis by Origination Year																			Term Loans Amortized Cost Basis by Origination Year
		2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans			2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
December 31, 2020
December 31, 2021																				December 31, 2021
Commercial, Financial, Agricultural	Commercial, Financial, Agricultural	$	—	$	—	$	445	$	349	$	303	$	2,899	$	6,809	$	46	$	10,851	Commercial, Financial, Agricultural	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		—		445		349		303		2,899		6,784		46		10,826		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		25		—		25		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Real Estate - Construction	Real Estate - Construction	$	—	$	—	$	421	$	—	$	—	$	—	$	—	$	—	$	421	Real Estate - Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential	Residential	$	—	$	—	$	421	$	—	$	—	$	—	$	—	$	—	$	421	Residential	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		—		421		—		—		—		—		—		421		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		—		—		—		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Commercial	Commercial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	Commercial	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		—		—		—		—		—		—		—		—		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		—		—		—		—		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Real Estate - 1-4 Family Mortgage	Real Estate - 1-4 Family Mortgage	$	—	$	371	$	3,082	$	33,674	$	28,169	$	140,689	$	70,870	$	2,672	$	279,527	Real Estate - 1-4 Family Mortgage	$	—	$	—	$	202	$	1,480	$	19,988	$	101,060	$	44,086	$	1,355	$	168,171
Primary	Primary	$	—	$	248	$	1,953	$	30,078	$	25,956	$	127,642	$	630	$	111	$	186,618	Primary	$	—	$	—	$	202	$	938	$	17,505	$	98,961	$	—	$	81	$	117,687
Performing Loans	Performing Loans	—		248		1,842		29,321		25,935		122,970		630		25		180,971		Performing Loans	—		—		202		829		16,902		94,607		—		81		112,621
Non-Performing Loans	Non-Performing Loans	—		—		111		757		21		4,672		—		86		5,647		Non-Performing Loans	—		—		—		109		603		4,354		—		—		5,066

Home Equity	Home Equity	$	—	$	—	$	742	$	3,324	$	1,668	$	1,027	$	70,120	$	2,561	$	79,442	Home Equity	$	—	$	—	$	—	$	542	$	2,441	$	1,823	$	44,086	$	1,274	$	50,166
Performing Loans	Performing Loans	—		—		742		3,324		1,668		960		69,518		2,124		78,336		Performing Loans	—		—		—		542		2,441		1,769		43,700		1,141		49,593
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		67		602		437		1,106		Non-Performing Loans	—		—		—		—		—		54		386		133		573

Rental/Investment	Rental/Investment	$	—	$	123	$	—	$	200	$	193	$	10,893	$	120	$	—	$	11,529	Rental/Investment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		123		—		200		193		10,800		120		—		11,436		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		93		—		—		93		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Land Development	Land Development	$	—	$	—	$	387	$	72	$	352	$	1,127	$	—	$	—	$	1,938	Land Development	$	—	$	—	$	—	$	—	$	42	$	276	$	—	$	—	$	318
Performing Loans	Performing Loans	—		—		387		30		117		1,127		—		—		1,661		Performing Loans	—		—		—		—		42		276		—		—		318
Non-Performing Loans	Non-Performing Loans	—		—		—		42		235		—		—		—		277		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Real Estate - Commercial Mortgage	Real Estate - Commercial Mortgage	$	—	$	337	$	597	$	1,063	$	982	$	35,946	$	1,902	$	—	$	40,827	Real Estate - Commercial Mortgage	$	—	$	—	$	—	$	147	$	31	$	558	$	—	$	—	$	736
Owner-Occupied	Owner-Occupied	$	—	$	—	$	—	$	625	$	660	$	20,531	$	1,357	$	—	$	23,173	Owner-Occupied	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		—		—		625		660		20,253		1,357		—		22,895		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		278		—		—		278		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Non-Owner Occupied	Non-Owner Occupied	$	—	$	337	$	443	$	49	$	66	$	11,467	$	153	$	—	$	12,515	Non-Owner Occupied	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Performing Loans	Performing Loans	—		337		443		49		66		11,331		153		—		12,379		Performing Loans	—		—		—		—		—		—		—		—		—
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		136		—		—		136		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Land Development	Land Development	$	—	$	—	$	154	$	389	$	256	$	3,948	$	392	$	—	$	5,139	Land Development	$	—	$	—	$	—	$	147	$	31	$	558	$	—	$	—	$	736
Performing Loans	Performing Loans	—		—		154		389		256		3,890		392		—		5,081		Performing Loans	—		—		—		147		31		558		—		—		736
Non-Performing Loans	Non-Performing Loans	—		—		—		—		—		58		—		—		58		Non-Performing Loans	—		—		—		—		—		—		—		—		—

Installment loans to individuals	Installment loans to individuals	$	—	$	—	$	34,976	$	15,497	$	1,118	$	4,348	$	3,676	$	60	$	59,675	Installment loans to individuals	$	—	$	—	$	—	$	20,581	$	9,721	$	3,881	$	1,558	$	34	$	35,775
Performing Loans	Performing Loans	—		—		34,942		15,405		1,051		4,262		3,676		29		59,365		Performing Loans	—		—		—		20,566		9,714		3,684		1,541		23		35,528
Non-Performing Loans	Non-Performing Loans	—		—		34		92		67		86		—		31		310		Non-Performing Loans	—		—		—		15		7		197		17		11		247

Total loans not subject to risk rating	Total loans not subject to risk rating	$	—	$	708	$	39,521	$	50,583	$	30,572	$	183,882	$	83,257	$	2,778	$	391,301	Total loans not subject to risk rating	$	—	$	—	$	202	$	22,208	$	29,740	$	105,499	$	45,644	$	1,389	$	204,682
Performing Loans	Performing Loans	—		708		39,376		49,692		30,249		178,492		82,630		2,224		383,371		Performing Loans	—		—		202		22,084		29,130		100,894		45,241		1,245		198,796
Non-Performing Loans	Non-Performing Loans	—		—		145		891		323		5,390		627		554		7,930		Non-Performing Loans	—		—		—		124		610		4,605		403		144		5,886

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Notes to Consolidated Financial Statements (Unaudited)

Note 5 – Allowance for Credit Losses

(In Thousands)

The following is a summary of total non purchased and purchased loans as of the dates presented:


		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Commercial, financial, agricultural(1)	Commercial, financial, agricultural(1)	$	1,436,019	$	2,536,984	Commercial, financial, agricultural(1)	$	1,445,607	$	1,423,270
Lease financing	Lease financing	83,496		80,022		Lease financing	94,954		80,192
Real estate – construction:	Real estate – construction:					Real estate – construction:
Residential	Residential	307,825		246,673		Residential	306,655		302,275
Commercial	Commercial	783,471		611,431		Commercial	915,397		802,621
Total real estate – construction	Total real estate – construction	1,091,296		858,104		Total real estate – construction	1,222,052		1,104,896
Real estate – 1-4 family mortgage:	Real estate – 1-4 family mortgage:					Real estate – 1-4 family mortgage:
Primary	Primary	1,808,139		1,750,951		Primary	1,925,813		1,816,120
Home equity	Home equity	481,552		513,160		Home equity	470,665		474,604
Rental/investment	Rental/investment	291,116		296,364		Rental/investment	292,811		288,474
Land development	Land development	143,936		137,833		Land development	151,690		145,048
Total real estate – 1-4 family mortgage	Total real estate – 1-4 family mortgage	2,724,743		2,698,308		Total real estate – 1-4 family mortgage	2,840,979		2,724,246
Real estate – commercial mortgage:	Real estate – commercial mortgage:					Real estate – commercial mortgage:
Owner-occupied	Owner-occupied	1,630,227		1,657,806		Owner-occupied	1,538,693		1,563,351
Non-owner occupied	Non-owner occupied	2,779,237		2,747,467		Non-owner occupied	2,907,116		2,856,947
Land development	Land development	126,266		149,579		Land development	132,055		128,739
Total real estate – commercial mortgage	Total real estate – commercial mortgage	4,535,730		4,554,852		Total real estate – commercial mortgage	4,577,864		4,549,037
Installment loans to individuals	Installment loans to individuals	149,821		209,537		Installment loans to individuals	137,115		143,340
Gross loans	Gross loans	10,021,105		10,937,807		Gross loans	10,318,571		10,024,981
Unearned income	Unearned income	(4,281)		(4,160)		Unearned income	(5,112)		(4,067)
Loans, net of unearned income	Loans, net of unearned income	10,016,824		10,933,647		Loans, net of unearned income	10,313,459		10,020,914
Allowance for credit losses on loans	Allowance for credit losses on loans	(170,038)		(176,144)		Allowance for credit losses on loans	(166,468)		(164,171)
Net loans	Net loans	$	9,846,786	$	10,757,503	Net loans	$	10,146,991	$	9,856,743

(1)Includes Paycheck Protection Program (“PPP”) loans of $8,382 and $58,391 as of March 31, 2022 and December 31, 2021, respectively.

Allowance for Credit Losses on Loans

The allowance for credit losses is an estimate of expected losses inherent within the Company’s loans held for investment portfolio and is maintained at a level believed adequate by management to absorb credit losses inherent in the entire loan portfolio. Management evaluates the adequacy of the allowance for credit losses on a quarterly basis. Expected credit loss inherent in non-cancellable off-balance-sheet credit exposures is accounted for as a separate liability in the Consolidated Balance Sheets. The allowance for credit losses on loans held for investment, as reported in the Company’s Consolidated Balance Sheets, is adjusted by a provision for credit losses, which is reported in earnings, and reduced by net charge-offs. Loan losses are charged against the allowance for credit losses when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses, please refer to the discussion in Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

The Company has made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses in the Company’s loan portfolio. As of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the Company had accrued interest receivable for loans of ~~$45,404~~$40,409 and ~~$56,459,~~$41,692, respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets. Although the Company made the election to exclude accrued interest from the measurement of the allowance

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

for credit losses, the Company did have an allowance for credit losses on interest deferred as part of the loan deferral program of ~~$1,356~~$1,266 and ~~$1,500,~~$1,273, respectively, as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020. The decrease in the balance during the first nine months of 2021 is due to the charge-off of deferred interest balances.~~

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

2021.

The following tables provide a roll-forward of the allowance for credit losses by loan category and a breakdown of the ending balance of the allowance based on the Company’s credit loss methodology for the periods presented:


		Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Lease Financing		Installment Loans to Individuals		Total			Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Lease Financing		Installment Loans to Individuals		Total
Three Months Ended September 30, 2021
Three Months Ended March 31, 2022																Three Months Ended March 31, 2022
Allowance for credit losses:	Allowance for credit losses:															Allowance for credit losses:
Beginning balance	Beginning balance	$	36,994	$	15,729	$	31,303	$	74,893	$	1,511	$	11,924	$	172,354	Beginning balance	$	33,922	$	16,419	$	32,356	$	68,940	$	1,486	$	11,048	$	164,171

Impact of PCD loans acquired during the period																Impact of PCD loans acquired during the period	1,648		—		—		—		—		—		1,648
Charge-offs	Charge-offs	(1,225)		—		(276)		(184)		(13)		(1,281)		(2,979)		Charge-offs	(2,102)		—		(163)		(6)		(7)		(779)		(3,057)
Recoveries	Recoveries	418		—		193		190		11		1,051		1,863		Recoveries	1,136		—		178		155		12		725		2,206
Net (charge-offs) recoveries	Net (charge-offs) recoveries	(807)		—		(83)		6		(2)		(230)		(1,116)		Net (charge-offs) recoveries	(966)		—		15		149		5		(54)		(851)
(Recovery of) provision for credit losses on loans		(1,210)		440		961		(1,004)		61		(448)		(1,200)
Provision for credit losses on loans																Provision for credit losses on loans	(998)		1,992		4,477		(3,858)		91		(204)		1,500
Ending balance	Ending balance	$	34,977	$	16,169	$	32,181	$	73,895	$	1,570	$	11,246	$	170,038	Ending balance	$	33,606	$	18,411	$	36,848	$	65,231	$	1,582	$	10,790	$	166,468
Nine Months Ended September 30, 2021
Allowance for credit losses:
Beginning balance		$	39,031	$	16,047	$	32,165	$	76,127	$	1,624	$	11,150	$	176,144

Charge-offs		(5,907)		(52)		(529)		(416)		(13)		(4,286)		(11,203)
Recoveries		940		13		855		504		36		3,949		6,297
Net (charge-offs) recoveries		(4,967)		(39)		326		88		23		(337)		(4,906)
(Recovery of) provision for credit losses on loans		913		161		(310)		(2,320)		(77)		433		(1,200)
Ending balance		$	34,977	$	16,169	$	32,181	$	73,895	$	1,570	$	11,246	$	170,038

Period-End Amount Allocated to:	Period-End Amount Allocated to:															Period-End Amount Allocated to:
Individually evaluated	Individually evaluated	$	9,717	$	—	$	206	$	5,968	$	—	$	607	$	16,498	Individually evaluated	$	9,225	$	—	$	396	$	2,660	$	—	$	570	$	12,851
Collectively evaluated	Collectively evaluated	25,260		16,169		31,975		67,927		1,570		10,639		153,540		Collectively evaluated	24,381		18,411		36,452		62,571		1,582		10,220		153,617
Ending balance	Ending balance	$	34,977	$	16,169	$	32,181	$	73,895	$	1,570	$	11,246	$	170,038	Ending balance	$	33,606	$	18,411	$	36,848	$	65,231	$	1,582	$	10,790	$	166,468
Loans:	Loans:															Loans:
Individually evaluated	Individually evaluated	$	15,193	$	—	$	5,311	$	19,120	$	—	$	617	$	40,241	Individually evaluated	$	13,070	$	—	$	4,477	$	15,464	$	—	$	570	$	33,581
Collectively evaluated	Collectively evaluated	1,420,826		1,091,296		2,719,432		4,516,610		79,215		149,204		9,976,583		Collectively evaluated	1,432,537		1,222,052		2,836,502		4,562,400		89,842		136,545		10,279,878
Ending balance	Ending balance	$	1,436,019	$	1,091,296	$	2,724,743	$	4,535,730	$	79,215	$	149,821	$	10,016,824	Ending balance	$	1,445,607	$	1,222,052	$	2,840,979	$	4,577,864	$	89,842	$	137,115	$	10,313,459

Nonaccruing loans with no allowance for credit losses	Nonaccruing loans with no allowance for credit losses	$	2,658	$	—	$	3,039	$	2,865	$	—	$	10	$	8,572	Nonaccruing loans with no allowance for credit losses	$	435	$	—	$	2,614	$	5,298	$	—	$	2	$	8,349

3231

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)


		Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Lease Financing		Installment Loans to Individuals		Total			Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Lease Financing		Installment Loans to Individuals		Total

Three Months Ended September 30, 2020
Three Months Ended March 31, 2021																Three Months Ended March 31, 2021
Allowance for credit losses:	Allowance for credit losses:															Allowance for credit losses:
Beginning balance	Beginning balance	$	30,685	$	12,538	$	29,401	$	60,061	$	1,812	$	10,890	$	145,387	Beginning balance	$	39,031	$	16,047	$	32,165	$	76,127	$	1,624	$	11,150	$	176,144

Charge-offs	Charge-offs	(420)		(136)		(720)		(553)		(168)		(1,579)		(3,576)		Charge-offs	(3,498)		(52)		(101)		(61)		—		(1,658)		(5,370)
Recoveries	Recoveries	698		31		152		711		1		1,594		3,187		Recoveries	289		13		261		171		11		1,587		2,332
Net (charge-offs) recoveries	Net (charge-offs) recoveries	278		(105)		(568)		158		(167)		15		(389)		Net (charge-offs) recoveries	(3,209)		(39)		160		110		11		(71)		(3,038)
Provision for credit losses on loans	Provision for credit losses on loans	7,232		1,386		3,872		10,363		187		60		23,100		Provision for credit losses on loans	1,770		(1,031)		(631)		(12)		(89)		(7)		—
Ending balance	Ending balance	$	38,195	$	13,819	$	32,705	$	70,582	$	1,832	$	10,965	$	168,098	Ending balance	$	37,592	$	14,977	$	31,694	$	76,225	$	1,546	$	11,072	$	173,106
Nine Months Ended September 30, 2020
Allowance for credit losses:
Beginning balance		$	10,658	$	5,029	$	9,814	$	24,990	$	910	$	761	$	52,162
Impact of the adoption of ASC 326		11,351		3,505		14,314		4,293		521		8,500		42,484
Charge-offs		(1,969)		(668)		(1,083)		(2,600)		(168)		(6,003)		(12,491)
Recoveries		996		31		288		2,451		11		5,816		9,593
Net (charge-offs) recoveries		(973)		(637)		(795)		(149)		(157)		(187)		(2,898)
Provision for credit losses on loans		17,159		5,922		9,372		41,448		558		1,891		76,350
Ending balance		$	38,195	$	13,819	$	32,705	$	70,582	$	1,832	$	10,965	$	168,098

Period-End Amount Allocated to:	Period-End Amount Allocated to:															Period-End Amount Allocated to:
Individually evaluated	Individually evaluated	$	10,211	$	—	$	275	$	380	$	—	$	270	$	11,136	Individually evaluated	$	9,908	$	—	$	232	$	4,846	$	—	$	607	$	15,593
Collectively evaluated	Collectively evaluated	27,984		13,819		32,430		70,202		1,832		10,695		156,962		Collectively evaluated	27,684		14,977		31,462		71,379		1,546		10,465		157,513
Ending balance	Ending balance	$	38,195	$	13,819	$	32,705	$	70,582	$	1,832	$	10,965	$	168,098	Ending balance	$	37,592	$	14,977	$	31,694	$	76,225	$	1,546	$	11,072	$	173,106
Loans:	Loans:															Loans:
Individually evaluated	Individually evaluated	$	17,670	$	—	$	4,718	$	6,596	$	—	$	618	$	29,602	Individually evaluated	$	15,435	$	—	$	6,311	$	18,508	$	—	$	621	$	40,875
Collectively evaluated	Collectively evaluated	2,630,392		773,119		2,755,676		4,570,413		82,928		242,608		11,055,136		Collectively evaluated	2,233,852		955,918		2,679,750		4,530,519		75,256		172,238		10,647,533
Ending balance	Ending balance	$	2,648,062	$	773,119	$	2,760,394	$	4,577,009	$	82,928	$	243,226	$	11,084,738	Ending balance	$	2,249,287	$	955,918	$	2,686,061	$	4,549,027	$	75,256	$	172,859	$	10,688,408

Nonaccruing loans with no allowance for credit losses	Nonaccruing loans with no allowance for credit losses	$	589	$	—	$	4,147	$	3,644	$	—	$	—	$	8,380	Nonaccruing loans with no allowance for credit losses	$	1,848	$	—	$	4,695	$	2,113	$	—	$	—	$	8,656

The Company recorded a ~~negative~~ provision ~~(recovery)~~ for credit losses of ~~$1,200~~$1,500 during the ~~third~~first quarter ~~and first nine months~~ of ~~2021,~~2022, as compared to ano provision for credit losses ~~on loans of $23,100 in the third quarter of 2020 and $76,350~~recorded in the first ~~nine months~~quarter of ~~2020.~~2021. The Company’s allowance for credit ~~loss~~losses model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years. ~~Based on the continual improvements in these forecasts over the last few quarters, the Company’s allowance model indicated that a release of the allowance for credit losses was appropriate~~The provision activity during the ~~third~~current quarter was primarily driven by strong loan growth during the quarter and the acquisition of ~~2021.~~Southeastern Commercial Finance, LLC.

Allowance for Credit Losses on Unfunded Loan Commitments

The Company maintains a separate allowance for credit losses on unfunded loan commitments, which is included in the “Other liabilities” line item on the Consolidated Balance Sheets. For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses on unfunded loan commitments, please refer to the discussion in

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

The following ~~tables provide~~table provides a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.


Three Months Ended September 30,		2021		2020
Three Months Ended March 31,						Three Months Ended March 31,	2022		2021
Allowance for credit losses on unfunded loan commitments:	Allowance for credit losses on unfunded loan commitments:					Allowance for credit losses on unfunded loan commitments:
Beginning balance	Beginning balance	$	20,535	$	17,335	Beginning balance	$	20,035	$	20,535

(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense)	(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense)	(200)		2,700		(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense)	(550)		—
Ending balance	Ending balance	$	20,335	$	20,035	Ending balance	$	19,485	$	20,535

Nine Months Ended September 30,		2021		2020
Allowance for credit losses on unfunded loan commitments:
Beginning balance		$	20,535	$	946
Impact of the adoption of ASC 326		—		10,389
(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense)		(200)		8,700
Ending balance		$	20,335	$	20,035

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 6 – Other Real Estate Owned

(In Thousands)

The following table provides details of the Company’s other real estate owned (“OREO”) purchased and non purchased, net of

valuation allowances and direct write-downs, as of the dates presented:


		Purchased OREO		Non Purchased OREO		Total OREO			Purchased OREO		Non Purchased OREO		Total OREO
September 30, 2021
March 31, 2022								March 31, 2022
Residential real estate	Residential real estate	$	127	$	376	$	503	Residential real estate	$	44	$	332	$	376
Commercial real estate	Commercial real estate	858		1,813		2,671		Commercial real estate	39		136		175
Residential land development	Residential land development	311		4		315		Residential land development	291		4		295
Commercial land development	Commercial land development	1,157		59		1,216		Commercial land development	1,157		59		1,216

Total	Total	$	2,453	$	2,252	$	4,705	Total	$	1,531	$	531	$	2,062
December 31, 2020
December 31, 2021								December 31, 2021
Residential real estate	Residential real estate	$	72	$	107	$	179	Residential real estate	$	93	$	166	$	259
Commercial real estate	Commercial real estate	1,741		924		2,665		Commercial real estate	39		722		761
Residential land development	Residential land development	337		676		1,013		Residential land development	301		4		305
Commercial land development	Commercial land development	1,777		338		2,115		Commercial land development	1,156		59		1,215

Total	Total	$	3,927	$	2,045	$	5,972	Total	$	1,589	$	951	$	2,540

Changes in the Company’s purchased and non purchased OREO were as follows:

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~


		Purchased OREO		Non Purchased OREO		Total OREO			Purchased OREO		Non Purchased OREO		Total OREO
Balance at January 1, 2021		$	3,927	$	2,045	$	5,972
Balance at January 1, 2022								Balance at January 1, 2022	$	1,589	$	951	$	2,540

Transfers of loans	Transfers of loans	1,047		2,124		3,171		Transfers of loans	36		164		200

Impairments	Impairments	(220)		(70)		(290)		Impairments	(14)		—		(14)
Dispositions	Dispositions	(2,171)		(1,836)		(4,007)		Dispositions	(79)		(586)		(665)
Other	Other	(130)		(11)		(141)		Other	(1)		2		1
Balance at September 30, 2021		$	2,453	$	2,252	$	4,705
Balance at March 31, 2022								Balance at March 31, 2022	$	1,531	$	531	$	2,062

At ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the amortized cost of loans secured by Real Estate - 1-4 Family Mortgage in the process of foreclosure was ~~$1,220~~$2,069 and ~~$1,308,~~$22, respectively.

Components of the line item “Other real estate owned” in the Consolidated Statements of Income were as follows for the periods presented:


		Three Months Ended				Nine Months Ended					Three Months Ended
		September 30,				September 30,					March 31,
		2021		2020		2021		2020				2022		2021
Repairs and maintenance	Repairs and maintenance	$	17	$	64	$	60	$	234	Repairs and maintenance		$	3	$	20
Property taxes and insurance	Property taxes and insurance	6		35		54		186		Property taxes and insurance		35		11
Impairments	Impairments	173		820		290		1,647		Impairments		14		70
Net (gains) losses on OREO sales		(24)		117		(74)		27
Net gains on OREO sales										Net gains on OREO sales		(291)		(56)
Rental income	Rental income	(4)		(3)		(17)		(23)		Rental income		(2)		(4)
Total	Total	$	168	$	1,033	$	313	$	2,071	Total		$	(241)	$	41

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 7 – Goodwill and Other Intangible Assets

(In Thousands)

The carrying amounts of goodwill by operating segments for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 were as follows:

Community Banks Insurance Total
Balance at January 1, 2021 $ 936,916 $ 2,767 $ 939,683
Additions to goodwill and other adjustments — — —
Balance at September 30, 2021 $ 936,916 $ 2,767 $ 939,683


	Community Banks		Insurance		Total
Balance at January 1, 2022	$	936,916	$	2,767	$	939,683
Additions to goodwill from the Southeastern Commercial Finance, LLC acquisition	6,608		—		6,608
Balance at March 31, 2022	$	943,524	$	2,767	$	946,291

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


		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount			Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
September 30, 2021
March 31, 2022								March 31, 2022
Core deposit intangibles	Core deposit intangibles	$	82,492	$	(58,020)	$	24,472	Core deposit intangibles	$	82,492	$	(60,720)	$	21,772
Customer relationship intangible	Customer relationship intangible	2,470		(1,420)		1,050		Customer relationship intangible	2,470		(1,511)		959
Total finite-lived intangible assets	Total finite-lived intangible assets	$	84,962	$	(59,440)	$	25,522	Total finite-lived intangible assets	$	84,962	$	(62,231)	$	22,731
December 31, 2020
December 31, 2021								December 31, 2021
Core deposit intangibles	Core deposit intangibles	$	82,492	$	(53,539)	$	28,953	Core deposit intangibles	$	82,492	$	(59,399)	$	23,093
Customer relationship intangible	Customer relationship intangible	2,470		(1,284)		1,186		Customer relationship intangible	2,470		(1,465)		1,005
Total finite-lived intangible assets	Total finite-lived intangible assets	$	84,962	$	(54,823)	$	30,139	Total finite-lived intangible assets	$	84,962	$	(60,864)	$	24,098

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

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~


		Three Months Ended				Nine Months Ended					Three Months Ended
		September 30,				September 30,					March 31,
		2021		2020		2021		2020				2022		2021
Amortization expense for:	Amortization expense for:									Amortization expense for:
Core deposit intangibles	Core deposit intangibles	$	1,436	$	1,688	$	4,482	$	5,326	Core deposit intangibles		$	1,321	$	1,553
Customer relationship intangible	Customer relationship intangible	45		45		136		136		Customer relationship intangible		45		45
Total intangible amortization	Total intangible amortization	$	1,481	$	1,733	$	4,618	$	5,462	Total intangible amortization		$	1,366	$	1,598

The estimated amortization expense of finite-lived intangible assets for the year ending December 31, ~~2021~~2022 and the succeeding four years is summarized as follows:


		Core Deposit Intangibles		Customer Relationship Intangible		Total			Core Deposit Intangibles		Customer Relationship Intangible		Total

2021		$	5,860	$	181	$	6,041
2022	2022	4,940		181		5,121		2022	$	4,941	$	181	$	5,122
2023	2023	4,044		181		4,225		2023	4,044		181		4,225
2024	2024	3,498		181		3,679		2024	3,498		181		3,679
2025	2025	3,103		181		3,284		2025	3,102		181		3,283
2026								2026	2,899		138		3,037

Note 8 – Mortgage Servicing Rights

(In Thousands)

The Company retains the right to service certain mortgage loans that it sells to secondary market investors. These mortgage servicing rights (“MSRs”) are recognized as a separate asset on the date the corresponding mortgage loan is sold. MSRs are amortized in proportion to and over the period of estimated net servicing income. These servicing rights are carried at the lower

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

of amortized cost or fair value. Fair value is determined using an income approach with various assumptions, including expected cash flows, prepayment speeds, market discount rates, servicing costs, and other factors, and is subject to significant fluctuation as a result of actual prepayment speeds, default rates and losses differing from estimates thereof. For example, ~~a decline~~an increase in mortgage interest rates or ~~an increase~~a decrease in actual prepayment speeds may cause ~~negative~~positive adjustments to the valuation of the Company’s MSRs.

Servicing rights are evaluated for impairment (or reversals of prior impairments) quarterly based upon the fair value of the rights as compared to the carrying amount. Impairment is recognized through a valuation allowance in the amount that unamortized cost exceeds fair value. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the valuation allowance may be recorded as an increase to income. Changes in valuation allowances related to servicing rights are reported in “Mortgage banking income” on the Consolidated Statements of Income.

There was no valuation adjustment on MSRs during the three months ended March 31, 2022. During the three months ended March 31, 2021, there was a positive valuation adjustment of $13,561 ~~during the nine months ended September 30, 2021 on MSRs. This positive adjustment~~which was caused primarily ~~arose from~~by an increase in mortgage interest rates and a corresponding decrease in actual prepayment speeds. During the nine months ended September 30, 2020 there was a negative valuation adjustment of $13,694 which was caused by a difference between actual prepayment speeds and the Company’s assumptions with respect to prepayment speeds.

Changes in the Company’s MSRs were as follows:


Balance at January 1, ~~2021~~2022	$	~~62,994~~89,018

Capitalization	~~26,532~~6,603
Amortization	~~(16,700)~~(3,891)
~~Valuation adjustment~~	~~13,561~~
Balance at ~~September 30, 2021~~March 31, 2022	$	~~86,387~~91,730

Data and key economic assumptions related to the Company’s MSRs are as follows as of the dates presented:


	March 31, 2022			December 31, 2021
Unpaid principal balance	$	8,931,901		$	8,728,629

Weighted-average prepayment speed (CPR)	6.71		%	10.56		%
Estimated impact of a 10% increase	$	(5,883)		$	(3,875)
Estimated impact of a 20% increase	(11,291)			(7,464)

Discount rate	9.68		%	9.82		%
Estimated impact of a 10% increase	$	(1,477)		$	(4,153)
Estimated impact of a 20% increase	(3,264)			(8,119)

Weighted-average coupon interest rate	3.27		%	3.29		%
Weighted-average servicing fee (basis points)	30.47			30.37
Weighted-average remaining maturity (in years)	8.46			6.69

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~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

September 30, 2021 December 31, 2020
Unpaid principal balance $ 8,470,973 $ 7,322,671
Weighted-average prepayment speed (CPR) 11.68 % 15.05 %
Estimated impact of a 10% increase $ (4,258) $ (4,001)
Estimated impact of a 20% increase (8,254) (7,674)
Discount rate 9.83 % 9.86 %
Estimated impact of a 10% increase $ (3,381) $ (2,144)
Estimated impact of a 20% increase (6,520) (4,144)
Weighted-average coupon interest rate 3.33 % 3.58 %
Weighted-average servicing fee (basis points) 30.52 29.94
Weighted-average remaining maturity (in years) 6.23 5.14

The Company recorded servicing fees of ~~$4,891~~$4,423 and ~~$3,400~~$4,071 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and servicing fees of $13,578 and $9,012 for the nine months ended September 30, 2021 and 2020,~~ respectively, all of which are included in “Mortgage banking income” in the Consolidated Statements of Income.

Note 9 - Employee Benefit and Deferred Compensation Plans

(In Thousands, Except Share Data)

Pension and Post-retirement Medical Plans

The Company sponsors a noncontributory defined benefit pension plan, under which participation and benefit accruals ceased as of December 31, 1996, and it provides retiree medical benefits, consisting of the opportunity to purchase coverage at subsidized rates under the Company’s group medical plan.

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

Pension Benefits Other Benefits
Three Months Ended Three Months Ended
September 30, September 30,
2021 2020 2021 2020
Service cost $ — $ — $ 2 $ 2
Interest cost 171 246 4 3
Expected return on plan assets (442) (412) — —
Recognized actuarial loss (gain) 67 87 — (23)
Net periodic (return) benefit cost $ (204) $ (79) $ 6 $ (18)

Pension Benefits Other Benefits
Nine Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Service cost $ — $ — $ 4 $ 5
Interest cost 512 738 11 10
Expected return on plan assets (1,326) (1,238) — —
Recognized actuarial loss (gain) 199 262 (2) (68)
Net periodic (return) benefit cost $ (615) $ (238) $ 13 $ (53)

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Notes to Consolidated Financial Statements (Unaudited)



	Pension Benefits				Other Benefits
	Three Months Ended				Three Months Ended
	March 31,				March 31,
	2022		2021			2022		2021
Service cost	$	—	$	—		$	1	$	1
Interest cost	184		166			3		4
Expected return on plan assets	(421)		(443)			—		—

Recognized actuarial loss (gain)	61		54			(19)		—

Net periodic (return) benefit cost	$	(176)	$	(223)		$	(15)	$	5

Incentive Compensation Plans

The Company maintains a long-term equity compensation plan that provides for the grant of stock options and the award of restricted stock. There were no stock options granted, nor compensation expense associated with options recorded, during the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 or ~~2020.~~

~~The following table summarizes information about~~2021. There were no stock options outstanding ~~exercised and forfeited~~ as of ~~and for the nine months ended September 30, 2021:~~March 31, 2022.

Shares Weighted Average Exercise Price
Options outstanding at beginning of period 10,500 $ 14.96
Granted — —
Exercised (5,000) 14.96
Forfeited — —
Options outstanding at end of period 5,500 $ 14.96

The Company also awards performance-based restricted stock to executives and other officers and employees and time-based restricted stock to non-employee directors, executives, and other officers and employees.

The following table summarizes the changes in restricted stock as of and for the ~~nine~~three months ended ~~September 30, 2021:~~March 31, 2022:


		Performance-Based Restricted Stock	Weighted Average Grant-Date Fair Value		Time-Based Restricted Stock	Weighted Average Grant-Date Fair Value			Performance-Based Restricted Stock	Weighted Average Grant-Date Fair Value		Time-Based Restricted Stock	Weighted Average Grant-Date Fair Value
Nonvested at beginning of period	Nonvested at beginning of period	132,827	$	32.88	548,416	$	34.15	Nonvested at beginning of period	146,561	$	34.67	603,714	$	34.48
Awarded	Awarded	78,230	34.02		253,733	37.22		Awarded	63,308	38.62		252,719	38.32
Vested	Vested	—	—		(139,752)	36.89		Vested	—	—		(139,711)	31.08
Cancelled	Cancelled	—	—		(53,737)	37.65		Cancelled	—	—		(2,000)	35.85
Nonvested at end of period	Nonvested at end of period	211,057	$	33.30	608,660	$	34.49	Nonvested at end of period	209,869	$	35.86	714,722	$	36.50

During the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, the Company reissued ~~134,783~~124,433 shares from treasury in connection with ~~the exercise of stock options and~~ awards of restricted stock. The Company recorded total stock-based compensation expense of ~~$2,595~~$3,338 and ~~$2,405~~$2,756 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively and $7,736 and $8,153 for the nine months ended September 30, 2021 and 2020,~~ respectively.

Note 10 – Derivative Instruments

(In Thousands)

The Company uses certain derivative instruments to meet the needs of customers as well as to manage the interest rate risk associated with certain transactions.

Non-hedge derivatives

The Company enters into derivative instruments that are not designated as hedging instruments to help its commercial customers manage their exposure to interest rate fluctuations. To mitigate the interest rate risk associated with these customer contracts, the Company enters into an offsetting derivative contract position. The Company manages its credit risk, or potential risk of default by its commercial customers, through credit limit approval and monitoring procedures.

The Company enters into interest rate lock commitments with its customers to mitigate the interest rate risk associated with the commitments to fund fixed-rate residential mortgage loans. The Company also enters into forward commitments to sell residential mortgage loans to secondary market investors.

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~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

The following table provides a summary of the Company’s derivatives not designated as hedging instruments as of the dates presented:

Balance Sheet September 30, 2021 December 31, 2020
Location Notional Amount Fair Value Notional Amount Fair Value
Derivative assets:
  Interest rate contracts Other Assets $ 190,200 $ 5,268 $ 222,933 $ 9,884
  Interest rate lock commitments Other Assets 422,596 7,592 589,701 19,824
Forward commitments Other Assets 550,000 3,659 — —
Totals $ 1,162,796 $ 16,519 $ 812,634 $ 29,708
Derivative liabilities:
  Interest rate contracts Other Liabilities $ 190,200 $ 5,268 $ 222,933 $ 9,884
Interest rate lock commitments Other Liabilities 101,591 423 — —
  Forward commitments Other Liabilities 82,000 158 716,000 5,090
Totals $ 373,791 $ 5,849 $ 938,933 $ 14,974

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)


	Balance Sheet	March 31, 2022				December 31, 2021
	Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivative assets:
Interest rate contracts	Other Assets	$	179,648	$	3,662	$	185,447	$	4,711
Interest rate lock commitments	Other Assets	130,896		2,032		310,941		5,304
Forward commitments	Other Assets	436,000		10,216		280,000		667
Totals		$	746,544	$	15,910	$	776,388	$	10,682
Derivative liabilities:
Interest rate contracts	Other Liabilities	$	179,648	$	3,662	$	185,447	$	4,711
Interest rate lock commitments	Other Liabilities	160,820		2,594		19,961		43
Forward commitments	Other Liabilities	35,000		97		320,000		736
Totals		$	375,468	$	6,353	$	525,408	$	5,490

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


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021
Interest rate contracts:	Interest rate contracts:									Interest rate contracts:
Included in interest income on loans	Included in interest income on loans	$	589	$	451	$	1,795	$	1,710	Included in interest income on loans		$	305	$	370

Interest rate lock commitments:	Interest rate lock commitments:									Interest rate lock commitments:
Included in mortgage banking income	Included in mortgage banking income	(3,251)		(1,135)		(12,655)		23,610		Included in mortgage banking income		(5,823)		(8,322)
Forward commitments	Forward commitments									Forward commitments
Included in mortgage banking income	Included in mortgage banking income	5,310		2,754		8,590		(1,395)		Included in mortgage banking income		10,188		18,803
Total	Total	$	2,648	$	2,070	$	(2,270)	$	23,925	Total		$	4,670	$	10,851

Derivatives designated as cash flow hedges

Cash flow hedge relationships mitigate exposure to the variability of future cash flow or other forecasted transactions. The Company uses interest rate swap contracts in an effort to manage future interest rate exposure on borrowings. The hedging strategy converts the LIBOR-based variable interest rate on the forecasted borrowings to a fixed interest rate. As of ~~September 30, 2021,~~March 31, 2022, the Company is hedging its exposure to the variability of future cash flows through 2030 and a portion of these hedges are forward starting.

The following table provides a summary of the Company’s derivatives designated as cash flow hedges as of the dates presented:


		Balance Sheet	September 30, 2021				December 31, 2020					Balance Sheet	March 31, 2022				December 31, 2021
		Location	Notional Amount		Fair Value		Notional Amount		Fair Value			Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivative assets:	Derivative assets:										Derivative assets:
Interest rate swaps	Interest rate swaps	Other Assets	$	200,000	$	11,615	$	175,000	$	3,866	Interest rate swaps	Other Assets	$	100,000	$	13,486	$	100,000	$	7,016

Derivative liabilities:	Derivative liabilities:										Derivative liabilities:
Interest rate swaps	Interest rate swaps	Other Liabilities	$	62,000	$	3,544	$	87,000	$	5,924	Interest rate swaps	Other Liabilities	$	30,000	$	816	$	62,000	$	2,902

Changes in fair value of the cash flow hedges are, to the extent that the hedging relationship is effective, recorded as other comprehensive income and are subsequently recognized in earnings at the same time that the hedged item is recognized in earnings. The ineffective portions of the changes in fair value of the hedging instruments are immediately recognized in earnings. The assessment of the effectiveness of the hedging relationship is evaluated under the hypothetical derivative method. There were no ineffective portions for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 or ~~2020.~~2021. The impact on other comprehensive income for the three months ended March 31, 2022 and 2021 is discussed in Note 13, “Other Comprehensive Income (Loss).”

Derivatives designated as fair value hedges

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Notes to Consolidated Financial Statements (Unaudited)

~~income for the nine months ended September 30, 2021 and 2020 is discussed in Note 13, “Other Comprehensive Income (Loss).”~~

~~Derivatives designated as fair value hedges~~

Fair value hedges protect against changes in the fair value of an asset, liability, or firm commitment. The Company enters into interest rate swap agreements to manage interest rate exposure on certain of the Company’s fixed-rate subordinated notes. The agreements convert the fixed interest rates to LIBOR-based variable interest rates.

The following table provides a summary of the Company's derivatives designated as fair value hedges as of the dates presented:


		Balance Sheet	September 30, 2021				December 31, 2020					Balance Sheet	March 31, 2022				December 31, 2021
		Location	Notional Amount		Fair Value		Notional Amount		Fair Value			Location	Notional Amount		Fair Value		Notional Amount		Fair Value

Derivative liabilities:	Derivative liabilities:										Derivative liabilities:
Interest rate swaps	Interest rate swaps	Other Liabilities	$	100,000	$	5,150	$	100,000	$	209	Interest rate swaps	Other Liabilities	$	100,000	$	11,754	$	100,000	$	5,411

The following table presents the effects of the Company’s fair value hedge relationships on the Consolidated Statements of Income for the periods presented:


			Amount of Gain (Loss) Recognized in Income											Amount of Gain (Loss) Recognized in Income
		Income Statement	Three Months Ended September 30,				Nine Months Ended September 30,					Income Statement	Three Months Ended March 31,
		Location	2021		2020		2021		2020			Location		2022		2021
Derivative liabilities:	Derivative liabilities:										Derivative liabilities:
Interest rate swaps - subordinated notes	Interest rate swaps - subordinated notes	Interest Expense	$	(764)	$	—	$	(4,941)	$	—	Interest rate swaps - subordinated notes	Interest Expense		$	(6,343)	$	(7,650)

Derivative liabilities - hedged items:	Derivative liabilities - hedged items:										Derivative liabilities - hedged items:
Interest rate swaps - subordinated notes	Interest rate swaps - subordinated notes	Interest Expense	$	764	$	—	$	4,941	$	—	Interest rate swaps - subordinated notes	Interest Expense		$	6,343	$	7,650

The following table presents the amounts that were recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of the dates presented:


		Carrying Amount of the Hedged Liability				Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Liability					Carrying Amount of the Hedged Liability				Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Liability
Balance Sheet Location	Balance Sheet Location	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020		Balance Sheet Location	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Long-term debt	Long-term debt	$	93,303	$	98,114	$	(5,150)	$	209	Long-term debt	$	86,786	$	93,085	$	11,754	$	5,411

Offsetting

Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheet when the “right of offset” exists or when the instruments are subject to an enforceable master netting agreement, which includes the right of the non-defaulting party or non-affected party to offset recognized amounts, including collateral posted with the counterparty, to determine a net receivable or net payable upon early termination of the agreement. Certain of the Company’s derivative instruments are subject to master netting agreements; however, the Company has not elected to offset such financial instruments in the Consolidated Balance Sheets. The following table presents the Company’s gross derivative positions as recognized in the Consolidated Balance Sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement:


	Offsetting Derivative Assets				Offsetting Derivative Liabilities
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Gross amounts recognized	$	26,694	$	8,007	$	13,337	$	13,436
Gross amounts offset in the Consolidated Balance Sheets	—		—		—		—
Net amounts presented in the Consolidated Balance Sheets	26,694		8,007		13,337		13,436
Gross amounts not offset in the Consolidated Balance Sheets
Financial instruments	12,382		7,208		12,382		7,208
Financial collateral pledged	—		—		955		6,228
Net amounts	$	14,312	$	799	$	—	$	—

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Offsetting Derivative Assets Offsetting Derivative Liabilities
September 30,
2021 December 31, 2020 September 30,
2021 December 31, 2020
Gross amounts recognized $ 15,373 $ 3,866 $ 14,021 $ 21,107
Gross amounts offset in the Consolidated Balance Sheets — — — —
Net amounts presented in the Consolidated Balance Sheets 15,373 3,866 14,021 21,107
Gross amounts not offset in the Consolidated Balance Sheets
Financial instruments 6,605 3,866 6,605 3,866
Financial collateral pledged — — 7,416 14,042
Net amounts $ 8,768 $ — $ — $ 3,199

Note 11 – Income Taxes

(In Thousands)

The following table is a summary of the Company’s temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities and their approximate tax effects as of the dates presented.


		September 30,		December 31,			March 31,		December 31,
		2021		2020			2022		2021
Deferred tax assets	Deferred tax assets					Deferred tax assets
Allowance for credit losses	Allowance for credit losses	$	52,345	$	53,597	Allowance for credit losses	$	50,421	$	50,712
Loans	Loans	3,471		5,526		Loans	2,602		2,855
Deferred compensation	Deferred compensation	13,598		13,114		Deferred compensation	10,777		14,522

Investment in partnerships		154		—
Net unrealized losses on securities						Net unrealized losses on securities	35,769		3,545
Impairment of assets	Impairment of assets	508		1,067		Impairment of assets	394		392
Net operating loss carryforwards	Net operating loss carryforwards	1,287		1,857		Net operating loss carryforwards	1,035		1,211
Investment in partnerships						Investment in partnerships	930		890

Lease liabilities under operating leases	Lease liabilities under operating leases	17,189		17,732		Lease liabilities under operating leases	15,423		17,106
Other	Other	3,613		3,539		Other	4,179		3,241
Total deferred tax assets	Total deferred tax assets	92,165		96,432		Total deferred tax assets	121,530		94,474

Deferred tax liabilities	Deferred tax liabilities					Deferred tax liabilities

Net unrealized gains on securities		3,580		8,434
Investment in partnerships		—		793

Fixed assets	Fixed assets	1,182		3,285		Fixed assets	5,734		5,339
Mortgage servicing rights	Mortgage servicing rights	20,587		14,623		Mortgage servicing rights	21,470		20,779
Junior subordinated debt	Junior subordinated debt	2,162		2,245		Junior subordinated debt	2,093		2,130
Intangibles	Intangibles	3,349		3,882		Intangibles	3,005		3,177
Lease right-of-use asset	Lease right-of-use asset	16,291		16,833		Lease right-of-use asset	14,696		16,209
Other	Other	565		1,672		Other	1,722		1,607
Total deferred tax liabilities	Total deferred tax liabilities	47,716		51,767		Total deferred tax liabilities	48,720		49,241
Net deferred tax assets	Net deferred tax assets	$	44,449	$	44,665	Net deferred tax assets	$	72,810	$	45,233

For the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ the Company recorded a provision for income taxes totaling ~~$35,572~~$7,935 and ~~$13,022,~~$16,842, respectively. The provision for income taxes includes both federal and state income taxes and differs from the statutory rate due to favorable permanent differences. During the second quarter of 2021 the Company recognized a one-time state tax credit investment of $3,460 which reduced income taxes as a discrete item. The effective tax rate, excluding discrete items, was 22.10% and 20.28% for the nine months ended September 30, 2021 and 2020, respectively.

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

The Company and its subsidiaries file a consolidated U.S. federal income tax return. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state departments of revenue for the years ending December 31, 2018 through December 31, 2020.

Note 12 – Fair Value Measurements

(In Thousands)

Fair Value Measurements and the Fair Level Hierarchy

FASB Accounting Standards Codification Topic (“ASC”) 820, ~~“Fair~~“Fair Value Measurements and Disclosures,” provides guidance for using fair value to measure assets and liabilities and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to a valuation based on quoted prices in active markets for identical assets and liabilities (Level 1), moderate priority to a valuation based on quoted prices in active markets for similar assets and liabilities and/or based on assumptions that are observable in the market (Level 2), and the lowest priority to a valuation based on assumptions that are not observable in the market (Level 3).

Table of Contents

Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Recurring Fair Value Measurements

The Company carries certain assets and liabilities at fair value on a recurring basis in accordance with applicable standards. The Company’s recurring fair value measurements are based on the requirement to carry such assets and liabilities at fair value or the Company’s election to carry certain eligible assets and liabilities at fair value. Assets and liabilities that are required to be carried at fair value on a recurring basis include securities available for sale and derivative instruments. The Company has elected to carry mortgage loans held for sale at fair value on a recurring basis as permitted under the guidance in ASC 825, ~~“Financial~~“Financial Instruments” (“ASC 825”).

The following methods and assumptions are used by the Company to estimate the fair values of the Company’s financial assets and liabilities that are measured on a recurring basis:

Securities available for sale: Securities available for sale consist primarily of debt securities, such as obligations of U.S. Government agencies and corporations, obligations of states and political subdivisions ~~mortgage-backed securities~~ and ~~trust preferred~~mortgage-backed securities. Where quoted market prices in active markets are available, securities are classified within Level 1 of the fair value hierarchy. If quoted prices from active markets are not available, fair values are based on quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active, or model-based valuation techniques where all significant assumptions are observable in the market. Such instruments are classified within Level 2 of the fair value hierarchy. When assumptions used in model-based valuation techniques are not observable in the market, the assumptions used by management reflect estimates of assumptions used by other market participants in determining fair value. When there is limited transparency around the inputs to the valuation, the instruments are classified within Level 3 of the fair value hierarchy.

Derivative instruments: Most of the Company’s derivative contracts are extensively traded in over-the-counter markets and are valued using discounted cash flow models which incorporate observable market based inputs including current market interest rates, credit spreads, and other factors. Such instruments are categorized within Level 2 of the fair value hierarchy and include interest rate swaps and other interest rate contracts such as interest rate caps and/or floors. The Company’s interest rate lock commitments are valued using current market prices for mortgage-backed securities with similar characteristics, adjusted for certain factors including servicing and risk. The value of the Company’s forward commitments is based on current prices for securities backed by similar types of loans. Because these assumptions are observable in active markets, the Company’s interest rate lock commitments and forward commitments are categorized within Level 2 of the fair value hierarchy.

Mortgage loans held for sale in loans held for sale: Mortgage loans held for sale are primarily agency loans which trade in active secondary markets. The fair value of these instruments is derived from current market pricing for similar loans, adjusted for differences in loan characteristics, including servicing and risk. Because the valuation is based on external pricing of similar instruments, mortgage loans held for sale are classified within Level 2 of the fair value hierarchy.

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


	Level 1		Level 2		Level 3		Totals
March 31, 2022
Financial assets:

Securities available for sale	$	—	$	2,405,316	$	—	$	2,405,316
Derivative instruments	—		29,396		—		29,396
Mortgage loans held for sale in loans held for sale	—		280,464		—		280,464
Total financial assets	$	—	$	2,715,176	$	—	$	2,715,176
Financial liabilities:
Derivative instruments:	$	—	$	18,923	$	—	$	18,923

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Level 1 Level 2 Level 3 Totals
September 30, 2021
Financial assets:
Securities available for sale $ — $ 2,544,643 $ — $ 2,544,643
Derivative instruments — 28,134 — 28,134
Mortgage loans held for sale in loans held for sale — 452,869 — 452,869
Total financial assets $ — $ 3,025,646 $ — $ 3,025,646
Financial liabilities:
Derivative instruments: $ — $ 14,543 $ — $ 14,543


		Level 1		Level 2		Level 3		Totals			Level 1		Level 2		Level 3		Totals
December 31, 2020
December 31, 2021										December 31, 2021
Financial assets:	Financial assets:									Financial assets:
Trust preferred securities		$	—	$	—	$	9,012	$	9,012
Other available for sale securities		—		1,334,445		—		1,334,445
Total securities available for sale		—		1,334,445		9,012		1,343,457

Securities available for sale										Securities available for sale	—		2,386,052		—		2,386,052

Derivative instruments	Derivative instruments	—		33,574		—		33,574		Derivative instruments	—		17,698		—		17,698
Mortgage loans held for sale in loans held for sale	Mortgage loans held for sale in loans held for sale	—		417,771		—		417,771		Mortgage loans held for sale in loans held for sale	—		453,533		—		453,533
Total financial assets	Total financial assets	$	—	$	1,785,790	$	9,012	$	1,794,802	Total financial assets	$	—	$	2,857,283	$	—	$	2,857,283
Financial liabilities:	Financial liabilities:									Financial liabilities:
Derivative instruments	Derivative instruments	$	—	$	21,107	$	—	$	21,107	Derivative instruments	$	—	$	13,803	$	—	$	13,803

The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the Company’s ability to observe inputs to the valuation may cause reclassification of certain assets or liabilities within the fair value hierarchy. Transfers between levels of the hierarchy are deemed to have occurred at the end of period. There were no such transfers between levels of the fair value hierarchy during the ~~nine~~three months ended ~~September 30, 2021.~~March 31, 2022.

The following ~~tables provide~~table provides a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, as of the dates presented:

2021 2020
Three Months Ended September 30, 2021 Trust preferred
securities Trust preferred
securities
Three Months Ended September 30,
Balance at beginning of period $ — $ 7,679
   Accretion included in net income — 8
   Unrealized losses included in other comprehensive income — 840
   Settlements — (35)
Balance at end of period $ — $ 8,492
Nine Months Ended September 30,
Balance at beginning of period $ 9,012 $ 9,986
   Accretion included in net income 7 26
   Unrealized gains (losses) included in other comprehensive income 941 (1,382)
   Realized losses 2,061 —
   Sales (12,021) —
   Settlements — (138)
Balance at end of period $ — $ 8,492

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~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~


	2021
Three Months Ended March 31, 2022	Trust preferred securities
Three Months Ended March 31,
Balance at beginning of period	$	9,012
Accretion included in net income	7
Unrealized losses included in other comprehensive income	941

Realized losses	2,061

Sales	(12,021)




Balance at end of period	$	—

For each of the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively, there were no gains or losses included in earnings that were attributable to the change in unrealized gains or losses related to assets or liabilities held at the end of each respective period that were measured on a recurring basis using significant unobservable inputs.

Nonrecurring Fair Value Measurements

Certain assets and liabilities may be recorded at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically are a result of the application of the lower of cost or market accounting or a write-down occurring during the period. The following tables provide the fair value measurement for assets measured at fair value on a nonrecurring basis that were still held on the Consolidated Balance Sheets as of the dates presented and the level within the fair value hierarchy each is classified:


September 30, 2021		Level 1		Level 2		Level 3		Totals
March 31, 2022										March 31, 2022	Level 1		Level 2		Level 3		Totals
Individually evaluated loans, net of allowance for credit losses	Individually evaluated loans, net of allowance for credit losses	$	—	$	—	$	9,410	$	9,410	Individually evaluated loans, net of allowance for credit losses	$	—	$	—	$	3,111	$	3,111
OREO	OREO	—		—		170		170		OREO	—		—		2,062		2,062
Mortgage servicing rights		—		—		86,387		86,387

Total	Total	$	—	$	—	$	95,967	$	95,967	Total	$	—	$	—	$	5,173	$	5,173


December 31, 2020		Level 1		Level 2		Level 3		Totals
December 31, 2021										December 31, 2021	Level 1		Level 2		Level 3		Totals
Individually evaluated loans, net of allowance for credit losses	Individually evaluated loans, net of allowance for credit losses	$	—	$	—	$	24,145	$	24,145	Individually evaluated loans, net of allowance for credit losses	$	—	$	—	$	7,928	$	7,928
OREO	OREO	—		—		2,736		2,736		OREO	—		—		2,540		2,540
Mortgage servicing rights		—		—		62,994		62,994

Total	Total	$	—	$	—	$	89,875	$	89,875	Total	$	—	$	—	$	10,468	$	10,468

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

The following methods and assumptions are used by the Company to estimate the fair values of the Company’s financial assets measured on a nonrecurring basis:

Individually evaluated loans: Loans are individually evaluated for credit losses each quarter taking into account the fair value of the collateral less estimated selling costs. Collateral may be real estate and/or business assets including but not limited to equipment, inventory and accounts receivable. The fair value of real estate is determined based on appraisals by qualified licensed appraisers. The fair value of the business assets is generally based on amounts reported on the business’s financial statements. Appraised and reported values may be adjusted based on changes in market conditions from the time of valuation and management’s knowledge of the client and the client’s business. Since not all valuation inputs are observable, these nonrecurring fair value determinations are classified as Level 3. Individually evaluated loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors previously identified. Individually evaluated loans that were measured or re-measured at fair value had a carrying value of ~~$17,959~~$6,466 and ~~$36,990~~$12,939 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively, and a specific reserve for these loans of ~~$8,549~~$3,355 and ~~$12,845~~$5,011 was included in the allowance for credit losses as of such dates.

Other real estate owned: OREO is comprised of commercial and residential real estate obtained in partial or total satisfaction of loan obligations. OREO acquired in settlement of indebtedness is recorded at the fair value of the real estate less estimated costs to sell. Subsequently, it may be necessary to record nonrecurring fair value adjustments for declines in fair value. Fair value, when recorded, is determined based on appraisals by qualified licensed appraisers and adjusted for management’s estimates of costs to sell. Accordingly, values for OREO are classified as Level 3.

The following table presents OREO measured at fair value on a nonrecurring basis that was still held on the Consolidated Balance Sheets as of the dates presented:


		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021

Carrying amount prior to remeasurement	Carrying amount prior to remeasurement	$	445	$	4,051	Carrying amount prior to remeasurement	$	2,076	$	2,556
Impairment recognized in results of operations	Impairment recognized in results of operations	(275)		(1,315)		Impairment recognized in results of operations	(14)		(16)
Fair value	Fair value	$	170	$	2,736	Fair value	$	2,062	$	2,540

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~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

Mortgage servicing rights: Mortgage servicing rights are carried at the lower of amortized cost or fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, prepayment speeds, servicing costs, and other factors. Because these factors are not all observable and include management’s assumptions, mortgage servicing rights are classified within Level 3 of the fair value hierarchy. Mortgage servicing rights were carried at amortized cost at ~~September 30, 2021~~March 31, 2022 and ~~fair value at~~ December 31, ~~2020.~~2021. There were ~~$13,561 of positive~~no valuation adjustments on MSRs during the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 and ~~$13,694~~$13,561 of ~~negative~~positive valuation adjustments recognized during the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021.

The following table presents information as of ~~September 30, 2021~~March 31, 2022 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:

Financial instrument

Fair
Value

Valuation Technique

Significant
Unobservable Inputs

Range of Inputs

Individually evaluated loans, net of allowance for credit losses

~~9,410~~3,111

Appraised value of collateral less estimated costs to sell

Estimated costs to sell

4-10%

OREO

~~170~~2,062

Appraised value of property less estimated costs to sell

Estimated costs to sell

4-10%

Fair Value Option

The Company has elected to measure all mortgage loans held for sale at fair value under the fair value option as permitted under ASC 825. Electing to measure these assets at fair value reduces certain timing differences and better matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them.

Net losses of ~~$10,425~~$13,021 and ~~net gains of $10,876~~$12,231 resulting from fair value changes of these mortgage loans were recorded in income during the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively. The amount does not reflect changes in fair values of related

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

derivative instruments used to hedge exposure to market-related risks associated with these mortgage loans. The change in fair value of both mortgage loans held for sale and the related derivative instruments are recorded in “Mortgage banking income” in the Consolidated Statements of Income.

The Company’s valuation of mortgage loans held for sale incorporates an assumption for credit risk; however, given the short-term period that the Company holds these loans, valuation adjustments attributable to instrument-specific credit risk is nominal. Interest income on mortgage loans held for sale measured at fair value is accrued as it is earned based on contractual rates and is reflected in loan interest income on the Consolidated Statements of Income.

The following table summarizes the differences between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020:~~2021:


		Aggregate Fair Value		Aggregate Unpaid Principal Balance		Difference			Aggregate Fair Value		Aggregate Unpaid Principal Balance		Difference
September 30, 2021
March 31, 2022								March 31, 2022
Mortgage loans held for sale measured at fair value	Mortgage loans held for sale measured at fair value	$	452,869	$	441,125	$	11,744	Mortgage loans held for sale measured at fair value	$	280,464	$	281,669	$	(1,205)

December 31, 2020
December 31, 2021								December 31, 2021
Mortgage loans held for sale measured at fair value	Mortgage loans held for sale measured at fair value	$	417,771	$	395,602	$	22,169	Mortgage loans held for sale measured at fair value	$	453,533	$	441,717	$	11,816

Fair Value of Financial Instruments

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


			Fair Value
As of March 31, 2022	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	1,607,493	$	1,607,493	$	—	$	—	$	1,607,493

Securities available for sale	2,405,316		—		2,405,316		—		2,405,316
Loans held for sale	280,464		—		280,464		—		280,464
Loans, net	10,146,991		—		—		9,860,650		9,860,650
Mortgage servicing rights	91,730		—		—		131,896		131,896
Derivative instruments	29,396		—		29,396		—		29,396
Financial liabilities
Deposits	$	13,990,897	$	12,650,868	$	1,321,023	$	—	$	13,971,891
Short-term borrowings	111,279		111,279		—		—		111,279

Federal Home Loan Bank advances	408		—		409		—		409
Junior subordinated debentures	111,518		—		104,427		—		104,427
Subordinated notes	323,490		—		322,900		—		322,900
Derivative instruments	18,923		—		18,923		—		18,923

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Fair Value
As of September 30, 2021 Carrying
Value Level 1 Level 2 Level 3 Total
Financial assets
Cash and cash equivalents $ 1,476,141 $ 1,476,141 $ — $ — $ 1,476,141
Securities available for sale 2,544,643 — 2,544,643 — 2,544,643
Loans held for sale 452,869 — 452,869 — 452,869
Loans, net 9,846,786 — — 9,726,732 9,726,732
Mortgage servicing rights 86,387 — — 90,738 90,738
Derivative instruments 28,134 — 28,134 — 28,134
Financial liabilities
Deposits $ 13,254,829 $ 11,787,346 $ 1,467,955 $ — $ 13,255,301
Short-term borrowings 11,253 11,253 — — 11,253
Federal Home Loan Bank advances 150,425 — 155,832 — 155,832
Junior subordinated debentures 111,228 — 105,546 — 105,546
Subordinated notes 207,210 — 221,700 — 221,700
Derivative instruments 14,543 — 14,543 — 14,543


				Fair Value											Fair Value
As of December 31, 2020		Carrying Value		Level 1		Level 2		Level 3		Total
As of December 31, 2021												As of December 31, 2021	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets	Financial assets											Financial assets
Cash and cash equivalents	Cash and cash equivalents	$	633,203	$	633,203	$	—	$	—	$	633,203	Cash and cash equivalents	$	1,877,965	$	1,877,965	$	—	$	—	$	1,877,965

Securities available for sale	Securities available for sale	1,343,457		—		1,334,445		9,012		1,343,457		Securities available for sale	2,386,052		—		2,386,052		—		2,386,052
Loans held for sale	Loans held for sale	417,771		—		417,771		—		417,771		Loans held for sale	453,533		—		453,533		—		453,533
Loans, net	Loans, net	10,757,503		—		—		10,668,625		10,668,625		Loans, net	9,856,743		—		—		9,690,604		9,690,604
Mortgage servicing rights	Mortgage servicing rights	62,994		—		—		62,994		62,994		Mortgage servicing rights	89,018		—		—		99,425		99,425
Derivative instruments	Derivative instruments	33,574		—		33,574		—		33,574		Derivative instruments	17,698		—		17,698		—		17,698
Financial liabilities	Financial liabilities											Financial liabilities
Deposits	Deposits	$	12,059,081	$	10,363,193	$	1,706,005	$	—	$	12,069,198	Deposits	$	13,905,724	$	12,494,342	$	1,408,397	$	—	$	13,902,739
Short-term borrowings	Short-term borrowings	21,340		21,340		—		—		21,340		Short-term borrowings	13,947		13,947		—		—		13,947

Federal Home Loan Bank advances	Federal Home Loan Bank advances	152,167		—		158,914		—		158,914		Federal Home Loan Bank advances	417		—		422		—		422
Junior subordinated debentures	Junior subordinated debentures	110,794		—		93,092		—		93,092		Junior subordinated debentures	111,373		—		106,682		—		106,682
Subordinated notes	Subordinated notes	212,009		—		217,575		—		217,575		Subordinated notes	359,419		—		373,950		—		373,950
Derivative instruments	Derivative instruments	21,107		—		21,107		—		21,107		Derivative instruments	13,803		—		13,803		—		13,803

4644

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Notes to Consolidated Financial Statements (Unaudited)

Note 13 – Other Comprehensive Income (Loss)

(In Thousands)

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

Pre-Tax Tax Expense
(Benefit) Net of Tax
Three months ended September 30, 2021
Securities available for sale:
Unrealized holding losses on securities $ (12,408) $ (3,158) $ (9,250)
Reclassification adjustment for gains realized in net income (764) (194) (570)
Total securities available for sale (13,172) (3,352) (9,820)
Derivative instruments:
Unrealized holding gains on derivative instruments 1,629 414 1,215
Total derivative instruments 1,629 414 1,215
Defined benefit pension and post-retirement benefit plans:
Amortization of net actuarial loss recognized in net periodic pension cost 67 18 49
Total defined benefit pension and post-retirement benefit plans 67 18 49
Total other comprehensive loss $ (11,476) $ (2,920) $ (8,556)
Three months ended September 30, 2020
Securities available for sale:
Unrealized holding gains on securities $ 519 $ 131 $ 388
Total securities available for sale 519 131 388
Derivative instruments:
Unrealized holding gains on derivative instruments 1,576 401 1,175
Total derivative instruments 1,576 401 1,175
Defined benefit pension and post-retirement benefit plans:
Amortization of net actuarial loss recognized in net periodic pension cost 65 17 48
Total defined benefit pension and post-retirement benefit plans 65 17 48
Total other comprehensive income $ 2,160 $ 549 $ 1,611

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~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~


									Pre-Tax		Tax Expense (Benefit)		Net of Tax
Three months ended March 31, 2022								Three months ended March 31, 2022
Securities available for sale:								Securities available for sale:
Unrealized holding losses on securities								Unrealized holding losses on securities	$	(134,756)	$	(34,294)	$	(100,462)

		Pre-Tax		Tax Expense (Benefit)		Net of Tax
Nine months ended September 30, 2021
Securities available for sale:
Unrealized holding losses on securities		$	(27,487)	$	(6,996)	$	(20,491)

Reclassification adjustment for gains realized in net income		(2,121)		(539)		(1,582)

Amortization of unrealized holding gains on securities transferred to the held to maturity category								Amortization of unrealized holding gains on securities transferred to the held to maturity category	(99)		(25)		(74)
Total securities available for sale	Total securities available for sale	(29,608)		(7,535)		(22,073)		Total securities available for sale	(134,855)		(34,319)		(100,536)
Derivative instruments:	Derivative instruments:							Derivative instruments:
Unrealized holding gains on derivative instruments	Unrealized holding gains on derivative instruments	10,129		2,578		7,551		Unrealized holding gains on derivative instruments	8,556		2,177		6,379

Total derivative instruments	Total derivative instruments	10,129		2,578		7,551		Total derivative instruments	8,556		2,177		6,379
Defined benefit pension and post-retirement benefit plans:	Defined benefit pension and post-retirement benefit plans:							Defined benefit pension and post-retirement benefit plans:

Amortization of net actuarial loss recognized in net periodic pension cost	Amortization of net actuarial loss recognized in net periodic pension cost	197		49		148		Amortization of net actuarial loss recognized in net periodic pension cost	42		11		31
Total defined benefit pension and post-retirement benefit plans	Total defined benefit pension and post-retirement benefit plans	197		49		148		Total defined benefit pension and post-retirement benefit plans	42		11		31
Total other comprehensive loss	Total other comprehensive loss	$	(19,282)	$	(4,908)	$	(14,374)	Total other comprehensive loss	$	(126,257)	$	(32,131)	$	(94,126)

Nine months ended September 30, 2020
Three months ended March 31, 2021								Three months ended March 31, 2021
Securities available for sale:	Securities available for sale:							Securities available for sale:
Unrealized holding gains on securities		$	26,404	$	6,719	$	19,685
Unrealized holding losses on securities								Unrealized holding losses on securities	$	(20,044)	$	(5,101)	$	(14,943)

Reclassification adjustment for gains realized in net income	Reclassification adjustment for gains realized in net income	(31)		(8)		(23)		Reclassification adjustment for gains realized in net income	(1,357)		(345)		(1,012)

Total securities available for sale	Total securities available for sale	26,373		6,711		19,662		Total securities available for sale	(21,401)		(5,446)		(15,955)
Derivative instruments:	Derivative instruments:							Derivative instruments:
Unrealized holding losses on derivative instruments		(3,516)		(895)		(2,621)
Unrealized holding gains on derivative instruments								Unrealized holding gains on derivative instruments	14,734		3,750		10,984

Total derivative instruments	Total derivative instruments	(3,516)		(895)		(2,621)		Total derivative instruments	14,734		3,750		10,984
Defined benefit pension and post-retirement benefit plans:	Defined benefit pension and post-retirement benefit plans:							Defined benefit pension and post-retirement benefit plans:

Amortization of net actuarial loss recognized in net periodic pension cost	Amortization of net actuarial loss recognized in net periodic pension cost	195		50		145		Amortization of net actuarial loss recognized in net periodic pension cost	54		12		42
Total defined benefit pension and post-retirement benefit plans	Total defined benefit pension and post-retirement benefit plans	195		50		145		Total defined benefit pension and post-retirement benefit plans	54		12		42
Total other comprehensive income		$	23,052	$	5,866	$	17,186
Total other comprehensive loss								Total other comprehensive loss	$	(6,613)	$	(1,684)	$	(4,929)

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

September 30,
2021 December 31, 2020
Unrealized gains on securities $ 8,854 $ 42,246
Non-credit related portion of previously recorded other-than-temporary impairment on securities — (11,319)
Unrealized gains (losses) on derivative instruments 6,913 (638)
Unrecognized losses on defined benefit pension and post-retirement benefit plans obligations (5,073) (5,221)
Total accumulated other comprehensive income $ 10,694 $ 25,068


	March 31, 2022		December 31, 2021
Unrealized losses on securities	$	(109,652)	$	(9,116)

Unrealized gains on derivative instruments	10,342		3,963
Unrecognized losses on defined benefit pension and post-retirement benefit plans obligations	(5,259)		(5,290)
Total accumulated other comprehensive loss	$	(104,569)	$	(10,443)

4845

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Notes to Consolidated Financial Statements (Unaudited)

Note 14 – Net Income Per Common Share

(In Thousands, Except Share Data)

Basic net income per common share is calculated by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per common share reflects the pro forma dilution of shares outstanding, assuming outstanding service-based restricted stock awards fully vested, ~~and outstanding stock options were exercised into common shares,~~ calculated in accordance with the treasury method. Basic and diluted net income per common share calculations are as follows for the periods presented:


		Three Months Ended					Three Months Ended
		September 30,					March 31,
		2021		2020			2022		2021
Basic	Basic					Basic
Net income applicable to common stock	Net income applicable to common stock	$	40,063	$	29,992	Net income applicable to common stock	$	33,547	$	57,908
Average common shares outstanding	Average common shares outstanding	56,146,285		56,185,884		Average common shares outstanding	55,809,192		56,240,201
Net income per common share - basic	Net income per common share - basic	$	0.71	$	0.53	Net income per common share - basic	$	0.60	$	1.03
Diluted	Diluted					Diluted
Net income applicable to common stock	Net income applicable to common stock	$	40,063	$	29,992	Net income applicable to common stock	$	33,547	$	57,908
Average common shares outstanding	Average common shares outstanding	56,146,285		56,185,884		Average common shares outstanding	55,809,192		56,240,201
Effect of dilutive stock-based compensation	Effect of dilutive stock-based compensation	300,899		200,269		Effect of dilutive stock-based compensation	272,671		278,998
Average common shares outstanding - diluted	Average common shares outstanding - diluted	56,447,184		56,386,153		Average common shares outstanding - diluted	56,081,863		56,519,199
Net income per common share - diluted	Net income per common share - diluted	$	0.71	$	0.53	Net income per common share - diluted	$	0.60	$	1.02

Nine Months Ended
September 30,
2021 2020
Basic
Net income applicable to common stock $ 138,838 $ 52,130
Average common shares outstanding 56,237,056 56,294,984
Net income per common share - basic $ 2.47 $ 0.93
Diluted
Net income applicable to common stock $ 138,838 $ 52,130
Average common shares outstanding 56,237,056 56,294,984
Effect of dilutive stock-based compensation 296,038 173,593
Average common shares outstanding - diluted 56,533,094 56,468,577
Net income per common share - diluted $ 2.46 $ 0.92

Stock-based compensation awards that could potentially dilute basic net income per common share in the future that were not included in the computation of diluted net income per common share due to their anti-dilutive effect were as follows for the periods presented:

Three Months Ended
September 30,
2021 2020
Number of shares 19,929 237,212
Exercise prices (for stock option awards) — —


	Three Months Ended
	March 31,
	2022	2021
Number of shares	2,200	1,875

Nine Months Ended
September 30,
2021 2020
Number of shares 19,929 255,448
Exercise prices (for stock option awards) — —

~~Table of Contents~~

~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

Note 15 – Regulatory Matters

(In Thousands)

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

The Federal Reserve, the FDIC and the Office of the Comptroller of the Currency have issued guidelines governing the levels of capital that bank holding companies and banks must maintain. Those guidelines specify capital tiers, which include the following classifications:

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Capital Tiers

Tier 1 Capital to
Average Assets
(Leverage)

Common Equity Tier 1 to
Risk - Weighted Assets

Tier 1 Capital to
Risk - Weighted
Assets

Total Capital to
Risk - Weighted
Assets

Well capitalized

5% or above

6.5% or above

8% or above

10% or above

Adequately capitalized

4% or above

4.5% or above

6% or above

8% or above

Undercapitalized

Less than 4%

Less than 4.5%

Less than 6%

Less than 8%

Significantly undercapitalized

Less than 3%

Less than 4%

Less than 6%

Critically undercapitalized

Tangible Equity / Total Assets less than 2%

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


		September 30, 2021				December 31, 2020					March 31, 2022				December 31, 2021
		Amount		Ratio		Amount		Ratio			Amount		Ratio		Amount		Ratio
Renasant Corporation	Renasant Corporation									Renasant Corporation
Tier 1 Capital to Average Assets (Leverage)	Tier 1 Capital to Average Assets (Leverage)	$	1,395,321	9.18	%	$	1,306,597	9.37	%	Tier 1 Capital to Average Assets (Leverage)	$	1,424,268	9.00	%	$	1,422,077	9.15	%
Common Equity Tier 1 Capital to Risk-Weighted Assets	Common Equity Tier 1 Capital to Risk-Weighted Assets	1,287,684		11.02	%	1,199,394		10.93	%	Common Equity Tier 1 Capital to Risk-Weighted Assets	1,316,342		10.78	%	1,314,295		11.18	%
Tier 1 Capital to Risk-Weighted Assets	Tier 1 Capital to Risk-Weighted Assets	1,395,321		11.94	%	1,306,597		11.91	%	Tier 1 Capital to Risk-Weighted Assets	1,424,268		11.67	%	1,422,077		12.10	%
Total Capital to Risk-Weighted Assets	Total Capital to Risk-Weighted Assets	1,712,500		14.66	%	1,653,694		15.07	%	Total Capital to Risk-Weighted Assets	1,892,630		15.50	%	1,897,167		16.14	%
Renasant Bank	Renasant Bank									Renasant Bank
Tier 1 Capital to Average Assets (Leverage)	Tier 1 Capital to Average Assets (Leverage)	$	1,454,879	9.58	%	$	1,369,994	9.83	%	Tier 1 Capital to Average Assets (Leverage)	$	1,581,608	10.00	%	$	1,580,904	10.18	%
Common Equity Tier 1 Capital to Risk-Weighted Assets	Common Equity Tier 1 Capital to Risk-Weighted Assets	1,454,879		12.45	%	1,369,994		12.49	%	Common Equity Tier 1 Capital to Risk-Weighted Assets	1,581,608		12.95	%	1,580,904		13.46	%
Tier 1 Capital to Risk-Weighted Assets	Tier 1 Capital to Risk-Weighted Assets	1,454,879		12.45	%	1,369,994		12.49	%	Tier 1 Capital to Risk-Weighted Assets	1,581,608		12.95	%	1,580,904		13.46	%
Total Capital to Risk-Weighted Assets	Total Capital to Risk-Weighted Assets	1,574,697		13.48	%	1,504,985		13.73	%	Total Capital to Risk-Weighted Assets	1,714,725		14.04	%	1,697,163		14.44	%

Common equity Tier 1 capital (“CET1”) generally consists of common stock, retained earnings, accumulated other comprehensive income and certain minority interests, less certain adjustments and deductions. In addition, the Company must maintain a “capital conservation buffer,” which is a specified amount of CET1 capital in addition to the amount necessary to meet minimum risk-based capital requirements. The capital conservation buffer is designed to absorb losses during periods of economic stress. If the Company’s ratio of CET1 to risk-weighted capital is below the capital conservation buffer, the Company will face restrictions on its ability to pay dividends, repurchase outstanding stock and make certain discretionary bonus payments. The required capital conservation buffer is 2.5% of CET1 to risk-weighted assets in addition to the amount necessary to meet minimum risk-based capital requirements. As shown in the tables above, as of ~~September 30, 2021,~~March 31, 2022, the Company’s CET1 capital was in excess of the capital conservation buffer.

The Company has elected to take advantage of transitional relief offered by the Federal Reserve and the FDIC to delay for two years the estimated impact of Accounting Standards Codification Topic 326, ~~“Financial~~“Financial Instruments - Credit Losses” (“ASC

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~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

326”), often referred to as CECL, on regulatory capital, followed by a three-year transitional period to phase out the capital benefit provided by the two-year delay.

The three-year transitional period began on January 1, 2022.

Note 16 – Segment Reporting

(In Thousands)

The operations of the Company’s reportable segments are described as follows:

•The Community Banks segment delivers a complete range of banking and financial services to individuals and small to medium-sized businesses including checking and savings accounts, business and personal loans, asset-based lending and equipment leasing, as well as safe deposit and night depository facilities.

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

•The Wealth Management segment, through the Trust division, offers a broad range of fiduciary services including the administration (as trustee or in other fiduciary or representative capacities) of benefit plans, management of trust accounts,

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Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

inclusive of personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts. In addition, the Wealth Management segment, through the Financial Services division, provides specialized products and services to customers, which include fixed and variable annuities, mutual funds and other investment services through a third party broker-dealer.

To give the Company’s divisional management a more precise indication of the income and expenses they can control, the results of operations for the Community Banks, the Insurance and the Wealth Management segments reflect the direct revenues and expenses of each respective segment. Indirect revenues and expenses, including but not limited to income from the Company’s investment portfolio as well as certain costs associated with data processing and back office functions, primarily support the operations of the community banks and, therefore, are included in the results of the Community Banks segment. Included in “Other” are the operations of the holding company and other eliminations which are necessary for purposes of reconciling to the consolidated amounts.

The following tables provide financial information for the Company’s operating segments as of and for the periods presented:

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~~Renasant Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited)~~

Community
Banks Insurance Wealth
Management Other Consolidated
Three months ended September 30, 2021
Net interest income (loss) $ 106,506 $ 115 $ 404 $ (3,733) $ 103,292
Recovery of loan losses (1,088) — (112) — (1,200)
Noninterest income 42,546 2,835 5,820 (446) 50,755
Noninterest expense 97,437 2,095 4,189 278 103,999
Income (loss) before income taxes 52,703 855 2,147 (4,457) 51,248
Income tax expense (benefit) 12,117 220 — (1,152) 11,185
Net income (loss) $ 40,586 $ 635 $ 2,147 $ (3,305) $ 40,063
Total assets $ 16,040,728 $ 33,036 $ 67,204 $ 14,582 $ 16,155,550
Goodwill $ 936,916 $ 2,767 — — $ 939,683
Three months ended September 30, 2020
Net interest income (loss) $ 108,909 $ 126 $ 403 $ (3,152) $ 106,286
Provision for loan losses 22,408 — 692 — 23,100
Noninterest income 63,918 2,694 4,714 (398) 70,928
Noninterest expense 110,430 1,974 3,818 288 116,510
Income (loss) before income taxes 39,989 846 607 (3,838) 37,604
Income tax expense (benefit) 8,383 217 — (988) 7,612
Net income (loss) $ 31,606 $ 629 $ 607 $ (2,850) $ 29,992
Total assets $ 14,694,683 $ 30,138 $ 68,261 $ 15,851 $ 14,808,933
Goodwill $ 936,916 $ 2,767 — — $ 939,683


		Community Banks		Insurance		Wealth Management		Other		Consolidated			Community Banks		Insurance		Wealth Management		Other		Consolidated
Nine months ended September 30, 2021
Three months ended March 31, 2022												Three months ended March 31, 2022
Net interest income (loss)	Net interest income (loss)	$	332,234	$	333	$	1,184	$	(11,232)	$	322,519	Net interest income (loss)	$	103,932	$	93	$	490	$	(4,886)	$	99,629
Recovery of credit losses		(1,088)		—		(112)		—		(1,200)
Provision for credit losses												Provision for credit losses	1,500		—		—		—		1,500
Noninterest income (loss)	Noninterest income (loss)	155,765		8,558		16,421		(1,342)		179,402		Noninterest income (loss)	28,306		3,097		6,505		(450)		37,458
Noninterest expense	Noninterest expense	309,449		6,005		12,337		920		328,711		Noninterest expense	86,871		2,116		4,755		363		94,105
Income (loss) before income taxes	Income (loss) before income taxes	179,638		2,886		5,380		(13,494)		174,410		Income (loss) before income taxes	43,867		1,074		2,240		(5,699)		41,482
Income tax expense (benefit)	Income tax expense (benefit)	38,320		740		—		(3,488)		35,572		Income tax expense (benefit)	9,131		281		—		(1,477)		7,935
Net income (loss)	Net income (loss)	$	141,318	$	2,146	$	5,380	$	(10,006)	$	138,838	Net income (loss)	$	34,736	$	793	$	2,240	$	(4,222)	$	33,547

Total assets	Total assets	$	16,040,728	$	33,036	$	67,204	$	14,582	$	16,155,550	Total assets	$	16,757,670	$	33,794	$	64,761	$	7,532	$	16,863,757
Goodwill	Goodwill	$	936,916	$	2,767	$	—	$	—	$	939,683	Goodwill	$	943,524	$	2,767	$	—	$	—	$	946,291

Nine months ended September 30, 2020
Three months ended March 31, 2021												Three months ended March 31, 2021
Net interest income (loss)	Net interest income (loss)	$	325,879	$	424	$	1,250	$	(8,883)	$	318,670	Net interest income (loss)	$	112,948	$	107	$	384	$	(3,791)	$	109,648
Provision for credit losses	Provision for credit losses	75,481		—		869		—		76,350		Provision for credit losses	—		—		—		—		—
Noninterest income (loss)	Noninterest income (loss)	152,716		7,787		13,370		(1,205)		172,668		Noninterest income (loss)	73,070		3,248		5,171		(452)		81,037
Noninterest expense (benefit)	Noninterest expense (benefit)	332,490		5,708		11,215		423		349,836		Noninterest expense (benefit)	109,586		1,923		4,101		325		115,935
Income (loss) before income taxes	Income (loss) before income taxes	70,624		2,503		2,536		(10,511)		65,152		Income (loss) before income taxes	76,432		1,432		1,454		(4,568)		74,750
Income tax expense (benefit)	Income tax expense (benefit)	15,088		658		—		(2,724)		13,022		Income tax expense (benefit)	17,656		367		—		(1,181)		16,842
Net income (loss)	Net income (loss)	$	55,536	$	1,845	$	2,536	$	(7,787)	$	52,130	Net income (loss)	$	58,776	$	1,065	$	1,454	$	(3,387)	$	57,908

Total assets	Total assets	$	14,694,683	$	30,138	$	68,261	$	15,851	$	14,808,933	Total assets	$	15,525,500	$	31,004	$	64,320	$	1,747	$	15,622,571
Goodwill	Goodwill	$	936,916	$	2,767	$	—	$	—	$	939,683	Goodwill	$	936,916	$	2,767	$	—	$	—	$	939,683

5248

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(In Thousands, Except Share Data)

This Form 10-Q may contain or incorporate by reference statements regarding Renasant Corporation (referred to herein as the “Company”, “we”, “our”, or “us”) that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “projects,” “anticipates,” “intends,” “estimates,” “plans,” “potential,” “possible,” “may increase,” “may fluctuate,” “will likely result,” and similar expressions, or future or conditional verbs such as “will,” “should,” “would” and “could,” are generally forward-looking in nature and not historical facts. Forward-looking statements include information about the Company’s future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. The Company’s management believes these forward-looking statements are reasonable, but they are all inherently subject to significant business, economic and competitive risks and uncertainties, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements, and such differences may be material. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and, accordingly, investors should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

Important factors currently known to management that could cause our actual results to differ materially from those in forward-looking statements include the following: (i) the ~~continued impact of the COVID-19 pandemic and related governmental response measures on the U.S. economy and the economies of the markets in which we operate; (ii) the~~ Company’s ability to efficiently integrate acquisitions 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; ~~(iii)~~(ii) the effect of economic conditions and interest rates on a national, regional or international basis; ~~(iv)~~(iii) timing and success of the implementation of changes in operations to achieve enhanced earnings or effect cost savings; ~~(v)~~(iv) competitive pressures in the consumer finance, commercial finance, insurance, financial services, asset management, retail banking, mortgage lending and auto lending industries; ~~(vi)~~(v) the financial resources of, and products available from, competitors; ~~(vii)~~(vi) changes in laws and regulations as well as changes in accounting standards; ~~(viii)~~(vii) changes in policy by regulatory agencies; ~~(ix)~~(viii) changes in the securities and foreign exchange markets; ~~(x)~~(ix) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; ~~(xi)~~(x) 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; ~~(xii)~~(xi) an insufficient allowance for credit losses as a result of inaccurate assumptions; ~~(xiii)~~(xii) general economic, market or business conditions, including the impact of ~~inflation; (xiv)~~inflation and changes in monetary policy by the Federal Reserve Board; (xiii) changes in demand for loan products and financial services; ~~(xv)~~(xiv) concentration of credit exposure; ~~(xvi)~~(xv) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; ~~(xvii)~~(xvi) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; ~~(xviii)~~(xvii) civil unrest, natural disasters, epidemics (including the re-emergence of the COVID-19 pandemic) and other catastrophic events in the Company’s geographic area; ~~(xix)~~(xviii) the impact, extent and timing of technological changes; and ~~(xx)~~(xix) 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.

The Company undertakes no obligation, and specifically disclaims any obligation, to update or revise forward-looking statements, whether as a result of new information or to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by federal securities laws.

Financial Condition

The following discussion provides details regarding the changes in significant balance sheet accounts at ~~September 30, 2021~~March 31, 2022 compared to December 31, ~~2020.~~2021.

Assets

Total assets were ~~$16,155,550~~$16,863,757 at ~~September 30, 2021~~March 31, 2022 compared to ~~$14,929,612~~$16,810,311 at December 31, ~~2020.~~2021. The Company acquired Southeastern Commercial Finance, LLC, an asset-based lending company headquartered in Birmingham, Alabama, effective March 1, 2022, which added $43,946 in total assets, including $28,110 in loans, on the date of acquisition.

Investments

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The securities portfolio is used to provide a ~~liquid~~ source ~~of interest income that also can~~for meeting liquidity needs and to supply securities to be used in collateralizing certain deposits and ~~other~~certain types of borrowings. The securities portfolio also serves as an outlet to deploy excess liquidity and generate interest income rather than hold such excess funds as cash. The following table shows the carrying value of our securities portfolio ~~all of which are classified as~~

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~~available for sale,~~ by investment type and the percentage of such investment type relative to the entire securities portfolio as of the dates presented:


		September 30, 2021				December 31, 2020					March 31, 2022				December 31, 2021
		Balance		Percentage of Portfolio		Balance		Percentage of Portfolio			Balance		Percentage of Portfolio		Balance		Percentage of Portfolio
U.S. Treasury securities	U.S. Treasury securities	$	3,024	0.12	%	$	7,079	0.53	%	U.S. Treasury securities	$	2,000	0.07	%	$	3,010	0.11	%
Obligations of other U.S. Government agencies and corporations		—		—		1,009		0.08

Obligations of states and political subdivisions	Obligations of states and political subdivisions	378,981		14.89		305,201		22.72		Obligations of states and political subdivisions	448,065		15.49		426,751		15.23
Mortgage-backed securities	Mortgage-backed securities	2,108,671		82.87		955,549		71.12		Mortgage-backed securities	2,327,149		80.45		2,313,167		82.54
Trust preferred securities		—		—		9,012		0.67

Other debt securities	Other debt securities	53,967		2.12		65,607		4.88		Other debt securities	115,328		3.99		59,513		2.12

		$	2,544,643	100.00	%	$	1,343,457	100.00	%		$	2,892,542	100.00	%	$	2,802,441	100.00	%
Allowance for credit losses - held to maturity securities										Allowance for credit losses - held to maturity securities	(32)				(32)
Securities, net of allowance for credit losses										Securities, net of allowance for credit losses	$	2,892,510			$	2,802,409

During the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, we deployed a portion of our excess liquidity into the securities portfolio and purchased ~~$1,743,105~~$365,069 in investment securities. Mortgage-backed securities and collateralized mortgage obligations (“CMOs”), in the aggregate, comprised approximately ~~94%~~72% of these purchases. CMOs are included in the “Mortgage-backed securities” line item in the above table. The mortgage-backed securities and CMOs held in our investment portfolio are primarily issued by government sponsored entities. Obligations of state and political subdivisions comprised approximately 6%11% of purchases made during the first ~~nine~~three months of ~~2021.~~2022. Other debt securities in our investment portfolio, consisting of corporate debt securities and issuances from the Small Business Administration (“SBA”), comprised approximately 17% of purchases made during the first three months of 2022.

Rising interest rates in the first quarter of 2022 had a negative impact on the value of our securities portfolio resulting in a fair market value adjustment of our available for sale securities of $134,756, which contributed to our accumulated other comprehensive loss.

Proceeds from maturities, calls and principal payments on securities during the first ~~nine~~three months of ~~2021~~2022 totaled ~~$329,520.~~$135,775. The Company ~~sold municipal~~did not sell any securities residential mortgage backed securities, trust preferred securities, and other debt securities with a carrying value of $174,285 at the time of sale for net proceeds of $176,406, resulting in a net gain on sale of $2,121 during the first ~~nine~~three months of ~~2021.~~2022. Proceeds from the maturities, calls and principal payments on securities during the first ~~nine~~three months of ~~2020~~2021 totaled ~~$314,363.~~$95,382. The Company sold municipal securities, ~~and~~ residential mortgage backed securities and trust preferred securities with a carrying value of ~~$8,742~~$154,034 at the time of sale for net proceeds of ~~$8,773,~~$155,391, resulting in a net gain on sale of ~~$31~~$1,357 during the first ~~nine~~three months of ~~2020.~~2021.

For more information about the Company’s security portfolio, see Note 2, “Securities,” in the Notes to Consolidated Financial Statements of the Company in Item 1, Financial Statements, in this report.

Loans Held for Sale

Loans held for sale, which consist of residential mortgage loans being held until they are sold in the secondary market, were ~~$452,869~~$280,464 at ~~September 30, 2021,~~March 31, 2022, as compared to ~~$417,771~~$453,533 at December 31, ~~2020.~~2021. Mortgage loans to be sold are sold either on a “best efforts” basis or under a mandatory delivery sales agreement. Under a “best efforts” sales agreement, residential real estate originations are locked in at a contractual rate with third party private investors or directly with government sponsored agencies, and the Company is obligated to sell the mortgages to such investors only if the mortgages are closed and funded. The risk we assume is conditioned upon loan underwriting and market conditions in the national mortgage market. Under a mandatory delivery sales agreement, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price and delivery date. Penalties are paid to the investor if we fail to satisfy the contract. Gains and losses are realized at the time consideration is received and all other criteria for sales treatment have been met. Our standard practice is to sell the loans within 30-40 days after the loan is funded. 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.

Loans

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Total loans, excluding loans held for sale, were ~~$10,016,824~~$10,313,459 at ~~September 30, 2021~~March 31, 2022 and ~~$10,933,647~~$10,020,914 at December 31, ~~2020.~~2021. Non purchased loans totaled ~~$8,875,880~~$9,338,890 at ~~September 30, 2021~~March 31, 2022 compared to ~~$9,419,540~~$9,011,011 at December 31, ~~2020.~~2021. Loans purchased in previous acquisitions totaled ~~$1,140,944~~$974,569 and ~~$1,514,107~~$1,009,903 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

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:

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		September 30, 2021									March 31, 2022
		Non Purchased		Purchased		Total Loans		Percentage of Total Loans			Non Purchased		Purchased		Total Loans		Percentage of Total Loans
Commercial, financial, agricultural (1)	Commercial, financial, agricultural (1)	$	1,321,569	$	114,450	$	1,436,019	14.34	%	Commercial, financial, agricultural (1)	$	1,336,239	$	109,368	$	1,445,607	14.02	%
Lease financing, net of unearned income	Lease financing, net of unearned income	79,215		—		79,215		0.79		Lease financing, net of unearned income	89,842		—		89,842		0.87
Real estate – construction:	Real estate – construction:									Real estate – construction:
Residential	Residential	306,537		1,288		307,825		3.07		Residential	305,396		1,259		306,655		2.97
Commercial	Commercial	779,766		3,705		783,471		7.82		Commercial	911,532		3,865		915,397		8.88

Total real estate – construction	Total real estate – construction	1,086,303		4,993		1,091,296		10.89		Total real estate – construction	1,216,928		5,124		1,222,052		11.85
Real estate – 1-4 family mortgage:	Real estate – 1-4 family mortgage:									Real estate – 1-4 family mortgage:
Primary	Primary	1,657,195		150,944		1,808,139		18.05		Primary	1,803,750		122,063		1,925,813		18.67
Home equity	Home equity	424,860		56,692		481,552		4.81		Home equity	424,426		46,239		470,665		4.56
Rental/investment	Rental/investment	268,609		22,507		291,116		2.91		Rental/investment	274,117		18,694		292,811		2.84
Land development	Land development	133,732		10,204		143,936		1.44		Land development	142,294		9,396		151,690		1.47
Total real estate – 1-4 family mortgage	Total real estate – 1-4 family mortgage	2,484,396		240,347		2,724,743		27.21		Total real estate – 1-4 family mortgage	2,644,587		196,392		2,840,979		27.54
Real estate – commercial mortgage:	Real estate – commercial mortgage:									Real estate – commercial mortgage:
Owner-occupied	Owner-occupied	1,365,288		264,939		1,630,227		16.27		Owner-occupied	1,318,446		220,247		1,538,693		14.92
Non-owner occupied	Non-owner occupied	2,323,135		456,102		2,779,237		27.74		Non-owner occupied	2,510,981		396,135		2,907,116		28.19
Land development	Land development	106,475		19,791		126,266		1.26		Land development	116,113		15,942		132,055		1.28
Total real estate – commercial mortgage	Total real estate – commercial mortgage	3,794,898		740,832		4,535,730		45.27		Total real estate – commercial mortgage	3,945,540		632,324		4,577,864		44.39
Installment loans to individuals	Installment loans to individuals	109,499		40,322		149,821		1.50		Installment loans to individuals	105,754		31,361		137,115		1.33
Total loans, net of unearned income	Total loans, net of unearned income	$	8,875,880	$	1,140,944	$	10,016,824	100.00	%	Total loans, net of unearned income	$	9,338,890	$	974,569	$	10,313,459	100.00	%

(1)Includes Paycheck Protection Program (“PPP”) loans of ~~$67,462~~$8,382 as of ~~September 30, 2021.~~March 31, 2022.

December 31, 2020
Non Purchased Purchased Total
Loans Percentage of Total Loans
Commercial, financial, agricultural (1)
$ 2,360,471 $ 176,513 $ 2,536,984 23.20 %
Lease financing, net of unearned income 75,862 — 75,862 0.69
Real estate – construction:
Residential 243,814 2,859 246,673 2.26
Commercial 583,338 28,093 611,431 5.59
Total real estate – construction 827,152 30,952 858,104 7.85
Real estate – 1-4 family mortgage:
Primary 1,536,181 214,770 1,750,951 16.02
Home equity 432,768 80,392 513,160 4.69
Rental/investment 264,436 31,928 296,364 2.71
Land development 123,179 14,654 137,833 1.26
Total real estate – 1-4 family mortgage 2,356,564 341,744 2,698,308 24.68
Real estate – commercial mortgage:
Owner-occupied 1,334,765 323,041 1,657,806 15.16
Non-owner occupied 2,194,739 552,728 2,747,467 25.13
Land development 120,125 29,454 149,579 1.37
Total real estate – commercial mortgage 3,649,629 905,223 4,554,852 41.66
Installment loans to individuals 149,862 59,675 209,537 1.92
Total loans, net of unearned income $ 9,419,540 $ 1,514,107 $ 10,933,647 100.00 %

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	December 31, 2021
	Non Purchased		Purchased		Total Loans		Percentage of Total Loans
Commercial, financial, agricultural (1)	$	1,332,962	$	90,308	$	1,423,270	14.20	%
Lease financing, net of unearned income	76,125		—		76,125		0.76
Real estate – construction:
Residential	300,988		1,287		302,275		3.02
Commercial	798,914		3,707		802,621		8.01
Total real estate – construction	1,099,902		4,994		1,104,896		11.03
Real estate – 1-4 family mortgage:
Primary	1,682,050		134,070		1,816,120		18.12
Home equity	423,108		51,496		474,604		4.74
Rental/investment	268,245		20,229		288,474		2.88
Land development	135,070		9,978		145,048		1.45
Total real estate – 1-4 family mortgage	2,508,473		215,773		2,724,246		27.19
Real estate – commercial mortgage:
Owner-occupied	1,329,219		234,132		1,563,351		15.60
Non-owner occupied	2,446,370		410,577		2,856,947		28.51
Land development	110,395		18,344		128,739		1.28
Total real estate – commercial mortgage	3,885,984		663,053		4,549,037		45.39
Installment loans to individuals	107,565		35,775		143,340		1.43
Total loans, net of unearned income	$	9,011,011	$	1,009,903	$	10,020,914	100.00	%

(1)Includes PPP loans of ~~$1,128,703~~$58,391 as of December 31, ~~2020.~~2021.

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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. At ~~September 30, 2021,~~March 31, 2022, 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.

Deposits

The Company relies on deposits as its major source of funds. Total deposits were ~~$13,254,829~~$13,990,897 and ~~$12,059,081~~$13,905,724 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively. Noninterest-bearing deposits were ~~$4,492,650~~$4,706,256 and ~~$3,685,048~~$4,718,124 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively, while interest-bearing deposits were ~~$8,762,179~~$9,284,641 and ~~$8,374,033~~$9,187,600 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

~~The growth in noninterest-bearing deposits across the Company’s footprint during the current year has been driven by government stimulus payments and client sentiment to maintain liquidity.~~ 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 time deposits greater than $250,000). Noninterest bearing deposits represented ~~33.89%~~33.64% of total deposits at ~~September 30, 2021,~~March 31, 2022, as compared to ~~30.56%~~33.93% of total deposits at December 31, ~~2020.~~2021. Under certain circumstances, ~~however,~~ management may elect to acquire non-core deposits (in the form of time deposits) or public fund deposits (which are deposits of counties, municipalities or other political subdivisions). The source of funds that we select depends on the terms and how those terms assist us in mitigating interest rate risk, maintaining our liquidity position and managing our net interest margin. Accordingly, funds are acquired to meet anticipated funding needs at the rate and with other terms that, in management’s view, best address our interest rate risk, liquidity and net interest margin parameters.

Public fund deposits may be readily obtained based on the Company’s pricing bid in comparison with competitors. Because public fund deposits are obtained through a bid process, these deposit balances may fluctuate as competitive and market forces change. 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. Public fund deposits were ~~$1,534,547~~$1,825,839 and ~~$1,398,330~~$1,787,414 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

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Borrowed Funds

Total borrowings include federal funds purchased, securities sold under agreements to repurchase, advances from the FHLB, 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 include 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:


		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Security repurchase agreements	Security repurchase agreements	$	11,253	$	10,947	Security repurchase agreements	$	11,279	$	13,947
Federal funds purchased		—		10,393

Short-term borrowings from the FHLB						Short-term borrowings from the FHLB	100,000		—

							$	111,279	$	13,947
		$	11,253	$	21,340

The Company has hedged the interest rate risk associated with the short-term borrowings from the FHLB using an interest rate swap, which became effective in March 2022, in which it pays a fixed rate of interest. The effect of this interest rate hedge was to significantly reduce the cost to the Company of borrowing from the FHLB, and so the Company elected to take advantage of the availability of this low-cost funding in the first quarter of 2022.

At ~~September 30, 2021,~~March 31, 2022, long-term debt consists of long-term FHLB advances, our junior subordinated debentures and our subordinated notes. The following table presents our long-term debt by type as of the dates presented:


		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Long-term FHLB advances	Long-term FHLB advances	$	150,425	$	152,167	Long-term FHLB advances	$	408	$	417
Junior subordinated debentures	Junior subordinated debentures	111,228		110,794		Junior subordinated debentures	111,518		111,373
Subordinated notes	Subordinated notes	207,210		212,009		Subordinated notes	323,490		359,419
		$	468,863	$	474,970		$	435,416	$	471,209

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. At ~~September 30, 2021, there were no~~March 31, 2022, all of our outstanding long-term FHLB advances were scheduled to

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mature within twelve months or less. The Company had ~~$3,977,848~~$4,047,128 of availability on unused lines of credit with the FHLB at ~~September 30, 2021,~~March 31, 2022, as compared to ~~$3,784,520~~$4,214,274 at December 31, ~~2020.~~2021.

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 (the “Bank”) as regulatory capital. The subordinated notes qualify as Tier 2 capital under the current regulatory guidelines.

On March 1, 2022, the Company redeemed at par the remaining $30,000 of its $60,000 5.00% fixed-to-floating rate subordinated notes. The Company redeemed the initial $30,000 of these notes in December 2021.

The Company owns the outstanding common securities of business trusts that issued corporation-obligated mandatorily redeemable preferred capital securities to third-party investors. 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). The debentures are the trusts’ only assets and interest payments from the debentures finance the distributions paid on the capital securities.

Results of Operations

Net Income

Net income for the ~~third~~first quarter of ~~2021~~2022 was ~~$40,063~~$33,547 compared to net income of ~~$29,992~~$57,908 for the ~~third~~first quarter of ~~2020.~~2021. Basic and diluted earnings per share (“EPS”) for the ~~third~~first quarter of ~~2021~~2022 were ~~$0.71~~$0.60 as compared to basic and diluted EPS of ~~$0.53 for the third quarter of 2020. Net income for the nine months ended September 30, 2021 was $138,838 compared to net income of $52,130 for the same period in 2020. Basic~~$1.03 and ~~diluted EPS were $2.47 and $2.46~~$1.02, respectively, for the first ~~nine months~~quarter of ~~2021, respectively, as compared to $0.93 and $0.92 for the first nine months of 2020, respectively.~~2021.

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. The following table presents the impact of these items on reported EPS for the dates

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presented. The “COVID-19 related expenses” line item in the table below primarily consists of (a) employee overtime and employee benefit accruals directly related to the Company’s response to both the COVID-19 pandemic itself and federal legislation enacted to address the pandemic, such as the CARES Act, and (b) expenses associated with supplying branches with protective equipment and sanitation supplies (such as floor markings and cautionary signage for branches, face coverings and hand sanitizer) as well as more frequent and rigorous branch cleaning.


		Three Months Ended
		September 30, 2021						September 30, 2020
		Pre-tax		After-tax		Impact to Diluted EPS		Pre-tax		After-tax		Impact to Diluted EPS

Debt prepayment penalty		$	—	$	—	$	—	$	28	$	22	$	—
MSR valuation adjustment		—		—		—		(828)		(650)		(0.01)

COVID-19 related expenses		323		253		—		570		448		0.01

		Nine Months Ended
		September 30, 2021						September 30, 2020
		Pre-tax		After-tax		Impact to Diluted EPS		Pre-tax		After-tax		Impact to Diluted EPS

Debt prepayment penalties		$	—	$	—	$	—	$	118	$	94	$	—
															Three Months Ended
															March 31, 2022						March 31, 2021
															Pre-tax		After-tax		Impact to Diluted EPS		Pre-tax		After-tax		Impact to Diluted EPS
Merger and conversion expenses														Merger and conversion expenses	$	687	$	556	$	0.01	$	—	$	—	$	—

MSR valuation adjustment	MSR valuation adjustment	(13,561)		(10,564)		(0.19)		13,694		10,916		0.19		MSR valuation adjustment	—		—		—		(13,561)		(10,497)		(0.19)
Restructuring charges		307		239		—		—		—		—
Restructuring (benefit) charges														Restructuring (benefit) charges	(455)		(368)		(0.01)		292		226		0.01
COVID-19 related expenses	COVID-19 related expenses	1,478		1,151		0.02		9,730		7,758		0.14		COVID-19 related expenses	—		—		—		785		608		0.01

Net Interest Income

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 ~~67.41%~~73.02% of total revenue (i.e., net interest income on a fully taxable equivalent basis and noninterest income) for the ~~third~~first quarter of ~~2021 and 64.61% of total revenue for the first nine months of 2021.~~2022. The primary concerns in managing net interest income are the volume, mix and repricing of assets and liabilities.

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Net interest income was ~~$103,292 and $322,519~~$99,629 for the three ~~and nine~~ months ended ~~September 30, 2021, respectively,~~March 31, 2022, as compared to ~~$106,286 and $318,670~~$109,648 for the same ~~respective periods~~period in ~~2020.~~2021. On a tax equivalent basis, net interest income was ~~$105,002 and $327,471~~$101,383 for the three ~~and nine~~ months ended ~~September 30, 2021, respectively,~~March 31, 2022, as compared to ~~$107,885 and $323,659 for the~~$111,264 same ~~respective periods~~period in ~~2020.~~2021.

The following tables set 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 for the periods presented:

Three Months Ended September 30,
2021 2020
Average
Balance Interest
Income/
Expense Yield/
Rate Average
Balance Interest
Income/
Expense Yield/
Rate
Assets
Interest-earning assets:
Loans held for investment:
Non purchased $ 8,690,443 $ 84,427 3.86 % $ 8,012,741 $ 81,281 4.04 %
Purchased 1,200,429 15,840 5.24 1,723,714 24,034 5.55
Paycheck Protection Program 126,870 3,503 10.95 1,305,229 7,449 2.27
Total loans held for investment 10,017,742 103,770 4.11 11,041,684 112,764 4.06
Loans held for sale 451,586 2,376 2.13 378,225 3,144 3.31
Securities:
Taxable(1)
1,942,647 6,688 1.38 1,003,886 5,473 2.17
Tax-exempt 324,219 2,297 2.83 265,679 2,205 3.30
Interest-bearing balances with banks 1,520,227 592 0.15 344,948 91 0.10
Total interest-earning assets 14,256,421 115,723 3.23 13,034,422 123,677 3.77
Cash and due from banks 195,095 210,278
Intangible assets 965,960 972,394
Other assets 712,673 711,065
Total assets $ 16,130,149 $ 14,928,159
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand(2)
$ 6,231,718 $ 3,821 0.24 % $ 5,405,085 $ 4,839 0.36 %
Savings deposits 1,006,847 192 0.08 796,841 167 0.08
Time deposits 1,506,192 2,959 0.78 1,907,918 6,804 1.42
Total interest-bearing deposits 8,744,757 6,972 0.32 8,109,844 11,810 0.58
Borrowed funds 482,709 3,749 3.08 719,800 3,982 2.20
Total interest-bearing liabilities 9,227,466 10,721 0.46 8,829,644 15,792 0.71
Noninterest-bearing deposits 4,470,262 3,723,059
Other liabilities 212,990 255,956
Shareholders’ equity 2,219,431 2,119,500
Total liabilities and shareholders’ equity $ 16,130,149 $ 14,928,159
Net interest income/net interest margin $ 105,002 2.93 % $ 107,885 3.29 %

~~(1)U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.~~

~~(2)Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.~~

5854

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		Nine Months Ended September 30,													Three Months Ended March 31,
		2021						2020							2022						2021
		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate			Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Assets	Assets													Assets
Interest-earning assets:	Interest-earning assets:													Interest-earning assets:
Loans held for investment:
Non purchased		$	8,525,359	$	249,128	3.91	%	$	7,847,197	$	251,671	4.28	%
Purchased		1,327,434		54,187		5.46		1,877,449		80,226		5.71

Paycheck Protection Program		578,643		24,310		5.62		725,891		13,335		2.45
Total loans held for investment		10,431,436		327,625		4.20		10,450,537		345,232		4.41
Loans held for investment														Loans held for investment	10,108,511		97,001		3.88		10,802,991		113,072		4.24
Loans held for sale	Loans held for sale	439,954		8,980		2.73		351,975		9,108		3.46		Loans held for sale	330,442		2,863		3.48		406,397		2,999		2.96
Securities:	Securities:													Securities:
Taxable(1)		1,505,611		17,077		1.51		1,034,189		19,148		2.47
Tax-exempt		316,159		6,915		2.92		251,744		6,609		3.51
Taxable														Taxable	2,499,822		8,782		1.41		1,065,779		4,840		1.82
Tax-exempt(1)														Tax-exempt(1)	438,380		2,635		2.40		306,344		2,284		2.98
Interest-bearing balances with banks	Interest-bearing balances with banks	1,176,378		1,121		0.13		387,116		1,098		0.38		Interest-bearing balances with banks	1,463,991		664		0.18		777,166		183		0.10
Total interest-earning assets	Total interest-earning assets	13,869,538		361,718		3.49		12,475,561		381,195		4.08		Total interest-earning assets	14,841,146		111,945		3.05		13,358,677		123,378		3.74
Cash and due from banks	Cash and due from banks	198,955						203,582						Cash and due from banks	206,224						205,830
Intangible assets	Intangible assets	967,458						974,182						Intangible assets	965,430						969,001

Other assets	Other assets	687,159						717,628						Other assets	684,464						670,183
Total assets	Total assets	$	15,723,110					$	14,370,953					Total assets	$	16,697,264					$	15,203,691
Liabilities and shareholders’ equity	Liabilities and shareholders’ equity													Liabilities and shareholders’ equity
Interest-bearing liabilities:	Interest-bearing liabilities:													Interest-bearing liabilities:
Deposits:	Deposits:													Deposits:
Interest-bearing demand(2)	Interest-bearing demand(2)	$	6,083,179	$	11,821	0.26	%	$	5,166,393	$	19,616	0.51	%	Interest-bearing demand(2)	$	6,636,392	$	3,647	0.22	%	$	5,906,230	$	3,932	0.27	%
Savings deposits	Savings deposits	953,391		547		0.08		741,933		592		0.11		Savings deposits	1,097,560		139		0.05		882,758		169		0.08
Time deposits	Time deposits	1,575,220		10,552		0.90		2,019,173		23,967		1.59		Time deposits	1,374,722		1,851		0.55		1,655,778		4,178		1.02
Total interest-bearing deposits	Total interest-bearing deposits	8,611,790		22,920		0.36		7,927,499		44,175		0.74		Total interest-bearing deposits	9,108,674		5,637		0.25		8,444,766		8,279		0.40
Borrowed funds	Borrowed funds	483,230		11,327		3.13		849,494		13,361		2.10		Borrowed funds	485,777		4,925		4.08		483,907		3,835		3.21
Total interest-bearing liabilities	Total interest-bearing liabilities	9,095,020		34,247		0.50		8,776,993		57,536		0.88		Total interest-bearing liabilities	9,594,451		10,562		0.44		8,928,673		12,114		0.55
Noninterest-bearing deposits	Noninterest-bearing deposits	4,202,364						3,251,612						Noninterest-bearing deposits	4,651,793						3,862,422
Other liabilities	Other liabilities	223,796						233,730						Other liabilities	201,353						240,171
Shareholders’ equity	Shareholders’ equity	2,201,930						2,108,618						Shareholders’ equity	2,249,667						2,172,425
Total liabilities and shareholders’ equity	Total liabilities and shareholders’ equity	$	15,723,110					$	14,370,953					Total liabilities and shareholders’ equity	$	16,697,264					$	15,203,691
Net interest income/net interest margin	Net interest income/net interest margin			$	327,471	3.16	%			$	323,659	3.47	%	Net interest income/net interest margin			$	101,383	2.76	%			$	111,264	3.37	%

(1)U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.

(2)Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

The average balances of nonaccruing assets are included in the tables above. Interest income and weighted average yields on tax-exempt loans and securities have been computed on a fully tax equivalent basis assuming a federal tax rate of 21% and a state tax rate of 4.45%, which is net of federal tax benefit.

Net interest margin and net interest income are influenced by internal and external factors. Internal factors include balance sheet changes in volume, mix and pricing decisions. External factors include changes in market interest rates, competition and the shape of the interest rate yield curve. As discussed in more detail below, the decline in loan yields due to the ~~current~~ low interest rate environment during the past year as well as changes in the mix of earning assets ~~during~~over the ~~quarter~~past year due to increased liquidity on the balance sheet were the largest contributing factors to the decrease in net interest margin and net interest income for the three ~~and nine~~ months ended ~~September 30, 2021,~~March 31, 2022, as compared to the same ~~periods~~period in ~~2020.~~2021. The Company has continued to focus on lowering the cost of funding through growing noninterest-bearing deposits and aggressively lowering interest rates on interest-bearing deposits. The

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Company has also increased its purchases of investment securities and continues to evaluate options to mitigate the pressure on net interest margin.

The following ~~tables set~~table sets 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 ~~both~~ the three ~~and nine~~ months ended ~~September 30, 2021,~~March 31, 2022, as compared to the same ~~respective periods~~ period

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in ~~2020~~2021 (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):

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		Three Months Ended September 30, 2021 Compared to the Three Months Ended September 30, 2020							Three months ended March 31, 2022 Compared to the Three Months Ended March 31, 2021
		Volume		Rate		Net			Volume		Rate		Net
Interest income:	Interest income:							Interest income:
Loans held for investment:
Non purchased		$	6,821	$	(3,675)	$	3,146
Purchased		(6,947)		(1,247)		(8,194)

Paycheck Protection Program		(11,665)		7,719		(3,946)
Loans held for investment								Loans held for investment	(6,966)		(9,105)		(16,071)
Loans held for sale	Loans held for sale	521		(1,289)		(768)		Loans held for sale	(606)		470		(136)
Securities:	Securities:							Securities:
Taxable	Taxable	3,756		(2,541)		1,215		Taxable	5,224		(1,282)		3,942
Tax-exempt	Tax-exempt	438		(346)		92		Tax-exempt	844		(493)		351
Interest-bearing balances with banks	Interest-bearing balances with banks	441		60		501		Interest-bearing balances with banks	235		246		481
Total interest-earning assets	Total interest-earning assets	(6,635)		(1,319)		(7,954)		Total interest-earning assets	(1,269)		(10,164)		(11,433)
Interest expense:	Interest expense:							Interest expense:
Interest-bearing demand deposits	Interest-bearing demand deposits	671		(1,689)		(1,018)		Interest-bearing demand deposits	451		(736)		(285)
Savings deposits	Savings deposits	41		(16)		25		Savings deposits	35		(65)		(30)
Time deposits	Time deposits	(1,225)		(2,620)		(3,845)		Time deposits	(621)		(1,706)		(2,327)
Borrowed funds	Borrowed funds	(1,548)		1,315		(233)		Borrowed funds	15		1,075		1,090
Total interest-bearing liabilities	Total interest-bearing liabilities	(2,061)		(3,010)		(5,071)		Total interest-bearing liabilities	(120)		(1,432)		(1,552)
Change in net interest income	Change in net interest income	$	(4,574)	$	1,691	$	(2,883)	Change in net interest income	$	(1,149)	$	(8,732)	$	(9,881)

		Nine months ended September 30, 2021 Compared to the Nine Months Ended September 30, 2020
		Volume		Rate		Net
Interest income:
Loans held for investment:
Non purchased		$	20,693	$	(23,236)	$	(2,543)
Purchased		(22,646)		(3,393)		(26,039)

Paycheck Protection Program		(3,182)		14,157		10,975
Loans held for sale		2,010		(2,138)		(128)
Securities:
Taxable		6,914		(8,985)		(2,071)
Tax-exempt		1,528		(1,222)		306
Interest-bearing balances with banks		1,118		(1,095)		23
Total interest-earning assets		6,435		(25,912)		(19,477)
Interest expense:
Interest-bearing demand deposits		3,025		(10,820)		(7,795)
Savings deposits		146		(191)		(45)
Time deposits		(4,506)		(8,909)		(13,415)
Borrowed funds		(7,090)		5,056		(2,034)
Total interest-bearing liabilities		(8,425)		(14,864)		(23,289)
Change in net interest income		$	14,860	$	(11,048)	$	3,812

Interest income, on a tax equivalent basis, was ~~$115,723 and $361,718, respectively,~~$111,945 for the three ~~and nine~~ months ended ~~September 30, 2021,~~March 31, 2022, as compared to ~~$123,677 and $381,195, respectively,~~$123,378, for the same ~~periods~~period in ~~2020.~~2021. This decrease in interest income, on a tax equivalent basis, is due primarily to the Federal Reserve maintaining low interest rates since March 2020 (until the Federal Reserve's first rate increase in March 2022) and changes in the mix of earning assets during the year due to increased liquidity on the balance sheet.

The following ~~tables present~~table presents the percentage of total average earning assets, by type and yield, for the periods presented:

~~Table of Contents~~


	Percentage of Total Average Earning Assets				Yield
	Three Months Ended				Three Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Loans held for investment, excl. PPP	67.84	%	73.49	%	3.88	%	4.22	%
Paycheck Protection Program	0.27		7.38		6.36		4.40
Loans held for sale	2.23		3.04		3.48		2.96
Securities	19.80		10.27		1.55		2.08
Other	9.86		5.82		0.18		0.10
Total earning assets	100.00	%	100.00	%	3.05	%	3.74	%

Percentage of Total Average Earning Assets Yield
Three Months Ended Three Months Ended
September 30, September 30,
2021 2020 2021 2020
Loans held for investment, excl. PPP 69.38 % 74.70 % 4.02 % 4.30 %
Paycheck Protection Program 0.89 10.01 10.95 2.27
Loans held for sale 3.17 2.90 2.13 3.31
Securities 15.90 9.74 1.59 2.41
Other 10.66 2.65 0.15 0.10
Total earning assets 100.00 % 100.00 % 3.23 % 3.77 %

Percentage of Total Average Earning Assets Yield
Nine Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Loans held for investment excl. PPP 71.04 % 77.95 % 4.12 % 4.56 %
Paycheck Protection Program 4.17 5.82 5.62 2.45
Loans held for sale 3.17 2.82 2.73 3.46
Securities 13.14 10.31 1.76 2.68
Interest-bearing balances with banks 8.48 3.10 0.13 0.38
Total earning assets 100.00 % 100.00 % 3.49 % 4.08 %

For the ~~third~~first quarter of ~~2021,~~2022, interest income on loans held for investment, on a tax equivalent basis, decreased ~~$8,994~~$16,071 to ~~$103,770~~$97,001 from ~~$112,764~~$113,072 for the same period in ~~2020. For the nine months ended September 30, 2021, interest income on loans held for investment, on a tax equivalent basis, decreased $17,607 to $327,625 from $345,232 for the same period in 2020.~~2021. Interest income on loans held for investment decreased primarily due to the Federal Reserve maintaining low interest rates since March 2020. Interest income attributable to PPP loans included in loan interest income for the three months ended ~~September 30, 2021,~~March 31, 2022, was ~~$3,503,~~$619, which consisted of ~~$306~~$94 in interest income and ~~$3,197~~$526 in accretion of net origination fees, as compared to ~~$7,449~~$10,687 for the three months ended ~~September 30, 2020,~~March 31, 2021, which consisted of ~~$3,262~~$2,392 in interest income and $4,187 in accretion of net origination fees. Interest income attributable to PPP loans included in loan interest income for the nine months ended September 30, 2021, was $24,310, which consisted of $4,222 in interest income and $20,088 in accretion of net origination fees, as compared to $13,335 for the nine months ended September 30, 2020, which consisted of $5,586 in interest income and $7,749$8,295 in accretion of net origination fees. The PPP origination fees, net of agent fees paid and other origination costs, are being accreted into interest income over the life of the loan. If a PPP loan is forgiven in whole or in part, as provided under the CARES Act, the Company will recognize the non-accreted portion of the net origination fee attributable to the forgiven portion of such loan as of the date of the final forgiveness determination. PPP loans increased margin and loan yield by 7one basis point each during the first quarter of 2022. PPP loans increased margin and loan yield by eight basis points and ~~9 basis points, respectively, during the third quarter of 2021, and 11 basis points and 8~~two basis points, respectively, in the first ~~nine months~~quarter of 2021. ~~PPP loans reduced margin and loan yield by 12 basis points and 23 basis points, respectively, in the third quarter~~

Table of ~~2020 and 6 basis points and 14 basis points, respectively, in the first nine months of 2020.~~Contents

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.

~~Table of Contents~~


		Three Months Ended						Nine Months Ended							Three Months Ended
		September 30,						September 30,							March 31,
		2021			2020			2021			2020					2022			2021
Net interest income collected on problem loans	Net interest income collected on problem loans	$	316		$	282		$	3,835		$	884		Net interest income collected on problem loans		$	434		$	2,180
Accretable yield recognized on purchased loans(1)	Accretable yield recognized on purchased loans(1)	2,871			4,949			8,597			15,118			Accretable yield recognized on purchased loans(1)		1,235			3,088
Total impact to interest income on loans	Total impact to interest income on loans	$	3,187		$	5,231		$	12,432		$	16,002		Total impact to interest income on loans		$	1,669		$	5,268

Impact to loan yield	Impact to loan yield	0.13		%	0.18		%	0.16		%	0.20		%	Impact to loan yield		0.07		%	0.20		%

Impact to net interest margin	Impact to net interest margin	0.09		%	0.16		%	0.12		%	0.17		%	Impact to net interest margin		0.05		%	0.16		%

(1)Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of ~~$1,649~~$373 and ~~$2,286,~~$1,272, for the ~~third~~first quarter of ~~2021~~2022 and ~~2020, respectively. The impact was $4,145 and $6,205 for the nine months ended September 30,~~ 2021, ~~and 2020,~~ respectively. This additional interest income increased total loan yield by 7one basis ~~points~~point and 8five basis points for the ~~third~~first quarter of ~~2021~~2022 and ~~2020,~~2021, respectively, while increasing net interest margin by 5one and 7four basis points for the same respective periods. For the nine months ended September 30, 2021 and 2020, the additional interest income increased total loan yields by 5 basis points and 8 basis points, respectively, while increasing net interest margin by 4 basis points and 7 basis points, respectively.

For the ~~third~~first quarter of ~~2021,~~2022, interest income on loans held for sale (consisting of mortgage loans held for sale)~~, on a tax equivalent basis,~~ decreased ~~$768~~$136 to ~~$2,376~~$2,863 from ~~$3,144~~$2,999 for the same period in 2020. For the nine months ended September 30, 2021, interest income on loans held for sale (consisting of mortgage loans held for sale), on a tax equivalent basis, decreased $128 to $8,980 from $9,108 for the same period in 2020.2021.

Investment income, on a tax equivalent basis, increased ~~$1,307~~$4,293 to ~~$8,985~~$11,417 for the ~~third~~first quarter of ~~2021~~2022 from ~~$7,678~~$7,124 for the ~~third~~first quarter of ~~2020. Investment income, on a tax equivalent basis, decreased $1,765 to $23,992 for the nine months ended September 30, 2021 from $25,757 for the same period in 2020.~~2021. The tax equivalent yield on the investment portfolio for the ~~third~~first quarter of ~~2021~~2022 was ~~1.59%~~1.55%, down 8253 basis points from ~~2.41%~~2.08% for the same period in ~~2020. The tax equivalent yield on the investment portfolio for the nine months ended September 30, 2021 was 1.76%, down 92 basis points from 2.68% for the same period in 2020.~~2021. The decrease in taxable equivalent yield on securities was a result of the ~~current~~low interest rate ~~environment.~~environment over the period. The growth in the Company’s investment securities portfolio during the year has helped offset the loss of investment income due to lower yield on securities.

Interest expense was ~~$10,721~~$10,562 for the ~~third~~first quarter of ~~2021~~2022 as compared to ~~$15,792~~$12,114 for the same period in ~~2020. Interest expense for the nine months ended September 30, 2021 was $34,247 as compared to $57,536 for the same period in 2020.~~2021.

The following ~~tables present,~~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					Percentage of Total Average Deposits and Borrowed Funds				Cost of Funds
		Three Months Ended				Three Months Ended					Three Months Ended				Three Months Ended
		September 30,				September 30,					March 31,				March 31,
		2021		2020		2021		2020			2022		2021		2022		2021
Noninterest-bearing demand	Noninterest-bearing demand	32.64	%	29.66	%	—	%	—	%	Noninterest-bearing demand	32.65	%	30.20	%	—	%	—	%
Interest-bearing demand	Interest-bearing demand	45.49		43.06		0.24		0.36		Interest-bearing demand	46.59		46.18		0.22		0.27
Savings	Savings	7.35		6.35		0.08		0.08		Savings	7.70		6.90		0.05		0.08
Time deposits	Time deposits	11.00		15.20		0.78		1.42		Time deposits	9.65		12.94		0.55		1.02
Short term borrowings	Short term borrowings	0.09		2.49		0.29		0.95		Short term borrowings	0.19		0.10		0.48		0.31
Long-term Federal Home Loan Bank advances	Long-term Federal Home Loan Bank advances	1.10		1.21		0.01		0.16		Long-term Federal Home Loan Bank advances	0.01		1.19		1.86		0.05
Subordinated notes	Subordinated notes	1.52		1.15		4.79		5.46		Subordinated notes	2.43		1.63		4.26		5.15
Other borrowed funds	Other borrowed funds	0.81		0.88		4.36		4.32		Other borrowed funds	0.78		0.86		4.41		4.24
Total deposits and borrowed funds	Total deposits and borrowed funds	100.00	%	100.00	%	0.31	%	0.50	%	Total deposits and borrowed funds	100.00	%	100.00	%	0.30	%	0.38	%

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Percentage of Total Average Deposits and Borrowed Funds Cost of Funds
Nine Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Noninterest-bearing demand 31.60 % 27.03 % — % — %
Interest-bearing demand 45.75 42.95 0.26 0.51
Savings 7.17 6.17 0.08 0.11
Time deposits 11.85 16.79 0.90 1.59
Short-term borrowings 0.10 3.85 0.30 1.02
Long-term Federal Home Loan Bank advances 1.14 1.27 0.03 0.80
Subordinated notes 1.56 1.03 4.97 5.54
Other long term borrowings 0.83 0.91 4.27 4.56
Total deposits and borrowed funds 100.00 % 100.00 % 0.34 % 0.64 %

Interest expense on deposits was ~~$6,972~~$5,637 and ~~$11,810~~$8,279 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively. The cost of total deposits was ~~0.21%~~0.17% and 0.40% for the same respective periods. Interest expense on deposits was $22,920 and $44,175 for the nine months ended September 30, 2021 and 2020, respectively, and the cost of total deposits was 0.24% and 0.53%0.27% for the same respective periods. The decrease in both deposit expense and cost is attributable to the Company’s efforts to reduce deposit rates as they ~~reprice~~repriced in ~~the current~~a low interest rate ~~environment.~~environment, although the Company expects that the rising rate environment will limit its ability to achieve further reductions in deposit interest rates and in fact may result in increased deposit costs in future periods. During ~~2021,~~2022, the Company has continued its efforts to grow and maintain non-interest bearing deposits. Such deposits ~~and such deposits represent 33.89%~~stayed relatively flat over the first quarter, representing 33.64% of total

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deposits at ~~September 30, 2021~~March 31, 2022 compared to ~~30.56%~~33.93% of total deposits at December 31, ~~2020. The growth in non-interest bearing deposits during the year to date has been primarily driven by government stimulus payments and client sentiment.~~2021. Low cost deposits continue to be the preferred choice of funding; however, the Company may rely on wholesale borrowings when rates are advantageous.

Interest expense on total borrowings was ~~$3,749~~$4,925 and ~~$3,982~~$3,835 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively. Interest expense on total borrowings was $11,327 and $13,361 for the nine months ended September 30, 2021 and 2020,~~ respectively. The ~~decrease~~increase in interest expense is a result of ~~lower~~higher average ~~borrowings.~~borrowings, primarily due to the Company's issuance of $200,000 of subordinated notes in November 2021.

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.

Noninterest Income

Noninterest Income to Average Assets
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
1.25% 1.89% 1.53% 1.60%


	Noninterest Income to Average Assets
Three Months Ended March 31,
	2022	2021
	0.91%	2.16%

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 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. Noninterest income was ~~$50,755~~$37,458 for the ~~third~~first quarter of ~~2021~~2022 as compared to ~~$70,928~~$81,037 for the same period in ~~2020. Noninterest~~2021. This decrease is primarily due to the reduction in mortgage banking income ~~was $179,402 for~~during the ~~nine months ended September 30, 2021~~first quarter of 2022 (discussed in more detail below) as compared to ~~$172,668 for~~ the ~~same period in 2020. During~~record production during the ~~third~~first quarter of 2021, with the exception of mortgage banking operations, all categories of noninterest income increased when compared to the prior period as market activity began to rebound with the lifting of pandemic-related restrictions across our footprint.2021.

Service charges on deposit accounts include maintenance fees on accounts, per item charges, account enhancement charges for additional packaged benefits and overdraft ~~fees.~~fees (which encompasses traditional overdraft fees as well as non-sufficient funds fees). Service charges on deposit accounts were ~~$9,337~~$9,562 and ~~$7,486~~$8,023 for the ~~third~~first quarter of ~~2021~~2022 and ~~2020, respectively, and $26,818 and $23,388 for the nine months ended September 30,~~ 2021, ~~and 2020,~~ respectively. Overdraft fees, the largest component of service charges on deposits, were ~~$4,876~~$5,178 for the three months ended ~~September 30, 2021,~~March 31, 2022, as compared to ~~$4,299~~$3,955 for the same period in ~~2020.~~2021. The Company recently announced its plans to eliminate consumer non-sufficient funds fees as well as transfer fees to linked customer accounts. These changes will take effect January 1, 2023. The fees to be eliminated totaled approximately $1,300 in the first quarter of 2022.

Fees and commissions were ~~$13,830 for~~$3,982 during the ~~nine months ended September 30, 2021~~first quarter of 2022 as compared to ~~$13,935~~$3,900 for the same period in ~~2020.~~

2021. Fees and commissions were $3,837 during the third quarter of 2021 as compared to $3,402 for the same period in 2020, and were $11,847 for the first nine months of 2021 as compared to $9,427 for the same period in 2020. Fees and commissions

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include fees related to deposit services, such as ATM fees and interchange fees on debit card transactions. For the ~~third~~first quarter of ~~2021,~~2022, interchange fees were ~~$2,685~~$2,431 as compared to ~~$2,323~~$2,392 for the same period in ~~2020. Interchange fees were $7,901 for the nine months ended September 30, 2021 as compared to $6,534 for the same period in 2020.~~2021.

Through Renasant Insurance, we offer a range of commercial and personal insurance products through major insurance carriers. Income earned on insurance products was ~~$2,829~~$2,554 and ~~$2,681~~$2,237 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and was $7,488 and $6,797 for the nine months ended September 30, 2021 and 2020,~~ respectively. Contingency income is a bonus received from the insurance underwriters and is based both on commission income and claims experience on our clients’ policies during the previous year. Increases and decreases in contingency income are reflective of corresponding increases and decreases in the number of claims paid by insurance carriers. Contingency income, which is included in “Other noninterest income” in the Consolidated Statements of Income, was $4$534 and $8$1,006 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and $1,057 and $926 for the nine months ended September 30, 2021 and 2020,~~ respectively.

Our Wealth Management segment has two primary divisions: Trust and Financial Services. The Trust division operates on a custodial basis which includes administration of benefit plans, as well as accounting and money management for trust accounts. The division manages a number of trust accounts inclusive of personal and corporate benefit accounts, IRAs, and custodial accounts. Fees for managing these accounts are based on changes in market values of the assets under management in the account, with the amount of the fee depending on the type of account. 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. Wealth Management revenue was ~~$5,371~~$5,924 for the ~~third~~first quarter of ~~2021~~2022 compared to ~~$4,364~~$4,792 for the same period in ~~2020 and was $15,182 for the nine months ended September 30, 2021 compared to $12,190 for the same period in 2020.~~2021. The market value of assets under management or administration was ~~$4,687,357~~$5,021,299 and ~~$3,890,374~~$4,453,355 at ~~September 30,~~March 31, 2022 and March 31, 2021, ~~and September 30, 2020,~~ 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. Originations of mortgage loans to be sold totaled ~~$966,651~~$595,045 in the ~~third~~first quarter of ~~2021~~2022 compared to ~~$1,253,742~~$1,143,349 for the same period in ~~2020. Mortgage loan originations totaled $3,189,474 in~~2021. During the ~~nine months ended September 30, 2021 compared to $3,277,576 for the same period in 2020. While~~first quarter of 2022 mortgage loan originations ~~remain elevated compared~~continued to normalize and trend toward pre-pandemic levels while margins ~~have~~on the sale of loans in the secondary market compressed as ~~the~~ interest ~~rate environment has begun to rise~~rates rose and housing inventories ~~are~~remained below

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demand. Mortgage banking income was ~~$23,292~~$9,633 and ~~$49,714~~$50,733 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and was $94,878 for the first nine months ended September 30, 2021 compared to $110,739 for the same period in 2020.~~respectively. The table below presents the components of mortgage banking income included in noninterest income for the periods presented.


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021
Gain on sales of loans, net (1)	Gain on sales of loans, net (1)	$	20,116	$	45,985	$	71,598	$	114,327	Gain on sales of loans, net (1)		$	6,047	$	33,901
Fees, net	Fees, net	3,420		5,367		12,841		13,597		Fees, net		3,053		4,902
Mortgage servicing loss, net		(244)		(2,466)		(3,122)		(3,491)
Mortgage servicing loss (gain), net										Mortgage servicing loss (gain), net		533		(1,631)
MSR valuation adjustment	MSR valuation adjustment	—		828		13,561		(13,694)		MSR valuation adjustment		—		13,561
Mortgage banking income, net	Mortgage banking income, net	$	23,292	$	49,714	$	94,878	$	110,739	Mortgage banking income, net		$	9,633	$	50,733

(1) Gain on sales of loans, net includes pipeline fair value adjustments

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. BOLI income was ~~$1,602~~$2,153 for the three months ended ~~September 30, 2021~~March 31, 2022 as compared to ~~$1,267~~$2,072 for the same period in ~~2020, and $5,318 for the first nine months of September 30, 2021 as compared to $3,759 for the same period in 2020.~~2021. The increase is primarily due to the $1,222 of life insurance proceeds received during the first nine months of 2021. There were no life insurance proceeds received during the nine months ended September 30, 2020. Additionally, the Company purchased ~~$50,000~~an additional $80,000 in BOLI policies during the first ~~nine~~three months of ~~2021.~~2022.

Other noninterest income was ~~$3,723~~$3,650 and ~~$2,014~~$7,923 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and was $15,750 and $6,337 for the nine months ended September 30, 2021 and 2020,~~ respectively. Other noninterest income includes income from our SBA banking division and other miscellaneous income and can fluctuate based on production in our SBA banking division and recognition of other seasonal income items. ~~In the first nine months of 2021, the Company entered~~

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into a referral relationship with a third party to utilize its technology platform to originate PPP loans under the latest round of funding. The Company earned $3,734 of PPP referral fees from its partner during the nine months ended September 30, 2021.

Noninterest Expense

Noninterest Expense to Average Assets
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
2.56% 3.10% 2.80% 3.25%


	Noninterest Expense to Average Assets
Three Months Ended March 31,
	2022	2021
	2.29%	3.09%

Noninterest expense was ~~$103,999~~$94,105 and ~~$116,510~~$115,935 for the ~~third~~first quarter of ~~2021~~2022 and ~~2020, respectively, and was $328,711 and $349,836 for the nine months ended September 30, 2021 and 2020, respectively.~~2021.

Salaries and employee benefits decreased ~~$6,291~~$16,457 to ~~$69,115~~$62,239 for the ~~third~~first quarter of ~~2021~~2022 as compared to ~~$75,406~~$78,696 for the same period in ~~2020. Salaries and employee benefits decreased $9,852 to $218,104 for the nine months ended September 30, 2021 as compared to $227,956 for the same period in 2020.~~2021. The decrease in salaries and employee benefits is primarily due to a decrease in ~~incentive expenses recognized for the nine months ended September 30, 2021~~mortgage commissions and ~~the cost savings realized~~incentives, driven by the ~~voluntary early retirement program offered during the fourth quarter of 2020.~~decrease in mortgage production described above.

Data processing costs ~~increased~~decreased to ~~$5,277~~$4,263 in the ~~third~~first quarter of ~~2021~~2022 from ~~$5,259~~$5,451 for the same period in ~~2020 and were $16,380 for~~2021. The decline in the ~~nine months ended September 30, 2021~~first quarter of 2022 as compared to ~~$15,312 for~~ the same period in ~~2020.~~2021 is primarily due to the Company's renegotiation of certain vendor contracts. 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.

Net occupancy and equipment expense for the ~~third~~first quarter of ~~2021~~2022 was ~~$11,748,~~$11,276, down from ~~$13,296~~$12,538 for the same period in ~~2020. These expenses for the first nine months of 2021 were $35,660, down from $40,927 for the same period in 2020.~~2021. The decrease in occupancy and equipment expense is primarily attributable to the restructuring and non-renewal of certain branch leases.

~~Expenses related to~~For the first quarter of 2022 the Company experienced a net gain of $241 in other real estate ~~owned for the third quarter of 2021 were $168~~expense as compared to ~~$1,033~~expenses of $41 for the same period in ~~2020 and were $313 and $2,071, respectively, for the first nine months of 2021 and 2020.~~2021. Expenses on other real estate owned included write downs of the carrying value to fair value on certain pieces of property held in other real estate owned of ~~$290~~$14 and ~~$1,647~~$70 for the first ~~nine~~three months of ~~2021~~2022 and ~~2020,~~2021, respectively. For the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ other real estate owned with a cost basis of ~~$4,007~~$665 and ~~$6,047,~~$1,906, respectively, was sold, resulting in a net gain of ~~$74~~$291 and net ~~loss~~gain of ~~$27,~~$56, respectively.

Professional fees include fees for legal and accounting services, such as routine litigation matters, external audit services as well as assistance in complying with newly-enacted and existing banking and governmental regulations. Professional fees were ~~$2,972~~$3,151 for the ~~third~~first quarter of ~~2021~~2022 as compared to ~~$3,197~~$2,921 for the same period in ~~2020 and $8,566 for the nine months ended September 30, 2021 as compared to $8,355 for the same period in 2020.~~2021.

Advertising and public relations expense was ~~$2,922~~$4,059 for the ~~third~~first quarter of ~~2021~~2022 as compared to ~~$2,240~~$3,252 for the same period in ~~2020,~~2021. During the first quarter of 2022, the Company contributed approximately $1,000 to charitable organizations throughout Mississippi and ~~$9,274~~Georgia, which is included in our advertising and public relations expense, for ~~the nine months ended September 30, 2021 compared to $8,560~~which it received a dollar for ~~the same period in 2020.~~dollar tax credit.

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Amortization of intangible assets totaled ~~$1,481~~$1,366 and ~~$1,733~~$1,598 for the ~~third~~first quarter of ~~2021~~2022 and ~~2020, respectively, and $4,618 and $5,462 for the nine months ended September 30,~~ 2021, ~~and 2020,~~ respectively. 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 ~~2 years~~1 year to 8 years.

Communication expenses, those expenses incurred for communication to clients and between employees, were ~~$2,198~~$2,027 for the ~~third~~first quarter of ~~2021~~2022 as compared to ~~$2,319~~$2,292 for the same period in ~~2020. Communication expenses were $6,781 for the nine months ended September 30, 2021 as compared to $6,698 for the same period in 2020.~~2021.

Other noninterest expense includes the provision for unfunded commitments, business development and travel expenses, other discretionary expenses, loan fees expense and other miscellaneous fees and operating expenses. Other noninterest expense was ~~$8,118 and $28,708~~$5,733 for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 as compared to ~~$11,999 and $34,377~~$8,854 for the same periods in ~~2020.~~2021. During the ~~third~~first quarter of ~~2021~~2022 there was a recovery of provision for unfunded commitments of ~~$200. The~~$550. There was no provision for unfunded commitments ~~was $2,700 and $8,700~~recorded for the ~~three and nine months ended September 30, 2020.~~same period in 2021.

Efficiency Ratio

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		Efficiency Ratio										Efficiency Ratio
		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021
Efficiency ratio (GAAP)	Efficiency ratio (GAAP)	66.77	%	65.16	%	64.85	%	70.49	%	Efficiency ratio (GAAP)		67.78	%	60.29	%

Adjusted efficiency ratio (Non-GAAP)(1)	Adjusted efficiency ratio (Non-GAAP)(1)	66.06	%	62.63	%	65.66	%	63.89	%	Adjusted efficiency ratio (Non-GAAP)(1)		67.02	%	63.85	%

(1)A reconciliation of this financial measure from GAAP to non-GAAP can be found under the “Non-GAAP Financial Measures” heading at the end of this Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The efficiency ratio is a measure of productivity in the banking industry. (This ratio is a measure of our ability to turn expenses into revenue. 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. The table above shows the impact on the efficiency ratio of items that (1) the Company does not consider to be part of ~~our~~its core operating activities, such as amortization of intangibles, or (2) the Company incurred in connection with certain transactions where management is unable to accurately predict the timing of when these items will be incurred or, when incurred, the amount of such items, such as, for the first quarter of 2022, merger and conversion related expenses, ~~or recoveries incurred in connection with our response to~~restructuring benefits and a recovery of a portion of the ~~COVID-19 pandemic, our MSR valuation adjustment and the provision~~reserve for unfunded commitments. We remain committed to aggressively managing our costs within the framework of our business model. Our goal is to improve the efficiency ratio over time from currently reported levels as a result of revenue growth while at the same time controlling noninterest expenses.

Income Taxes

Income tax expense for the ~~third~~first quarter of 2022 and 2021 was $7,935 and 2020 was $11,185 and $7,612, respectively. The effective tax rates for those periods were 21.84% and 21.58%, respectively. Income tax expense for the nine months ended September 30, 2021 and 2020 was $35,572 and $13,022, respectively. The effective tax rates for those periods were 22.10% and 20.28%,$16,842, respectively. In addition to lower earnings in the ~~second~~first quarter of 2022 as compared to the first quarter of 2021, the Company ~~received a benefit from a one-time state~~also recognized tax ~~credit investment. The investment~~credits of ~~$3,112 was fully amortized~~approximately $1,000 in ~~other noninterest expense and~~ the ~~credit of $3,460 reduced income taxes for the second~~first quarter of ~~2021.~~2022 as mentioned above in the advertising and public relations discussion.

Risk Management

The management of risk is an on-going process. Primary risks that are associated with the Company include credit, interest rate and liquidity risk. Credit risk and interest rate risk are discussed below, while liquidity risk is discussed in the next subsection under the heading “Liquidity and Capital Resources.”

Credit Risk and Allowance for Credit Losses on Loans and Unfunded Commitments

~~COVID-19 Update~~. At September 30, 2021, the Company’s credit quality metrics remained stable. The Company is continuing to monitor all asset categories given that any category or borrower could be negatively impacted by the pandemic, with enhanced monitoring of loans remaining on deferral under the Company’s loan deferral programs implemented in 2020 and described in more detail in the section entitled “Credit Risk and Allowance for Credit Losses on Loans and Unfunded Commitments” in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2020, as well as a focus on those industries more highly impacted by the pandemic, primarily the hospitality and senior living industries. At September 30, 2021, the Company had 41 loans (not in thousands) on deferral with an aggregate balance of approximately $3,360, or 0.04% of our loan portfolio (excluding PPP loans) by dollar value. In accordance with the applicable guidance, none of these loans are considered “restructured loans” and thus are not included in the discussion of our restructured loans below.

Management of Credit Risk. Inherent in any lending activity is credit risk, that is, the risk of loss should a borrower default. 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. 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. 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. 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. In addition, we maintain a loan review staff to independently monitor loan quality and lending practices. Loan review personnel

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monitor and, if necessary, adjust the grades assigned to loans through periodic examination, focusing their review on

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commercial and real estate loans rather than consumer and small balance consumer mortgage loans, such as 1-4 family mortgage loans.

In compliance with loan policy, the lending staff is given lending limits based on their knowledge and experience. In addition, each lending officer’s prior performance is evaluated for credit quality and compliance as a tool for establishing and enhancing lending limits. Before funds are advanced on consumer and commercial loans below certain dollar thresholds, loans are reviewed and scored using centralized underwriting methodologies. Loan quality, or “risk-rating,” grades are assigned based upon certain factors, which include the scoring of the loans. This information is used to assist management in monitoring credit quality. Loan requests of amounts greater than an officer’s lending limit are reviewed for approval by senior credit officers.

For loans with a commercial purpose, 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. Loan grades range from 1 to 9, with 1 rated loans having the least credit risk.

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 ~~and placed on the Company’s internal watch list~~to criticized due to a decline in the collateral value or cash flow of the ~~borrower; the committees then adjust loan grades accordingly.~~borrower. This information is used to assist management in monitoring credit quality. When the ultimate collectability of a loan’s principal is in doubt, wholly or partially, the loan is placed on nonaccrual.

After all collection efforts have failed, collateral securing loans may be repossessed and sold or, for loans secured by real estate, foreclosure proceedings initiated. The collateral is sold at public auction for fair market value (based upon recent appraisals as described above), with fees associated with the foreclosure being deducted from the sales price. The purchase price is applied to the outstanding loan balance. ~~If the loan~~Any remaining balance is ~~greater than the sales proceeds, the deficient balance is sent to the Board of Directors’ Credit Review Committee for charge-off approval. These charge-offs reduce~~charged-off, which reduces 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.

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 ~~identified and~~ reasonably quantified. Net charge-offs for the first ~~nine months~~quarter of ~~2021~~2022 were ~~$4,906,~~$851, or ~~0.06%~~0.03% of average loans (annualized), compared to net charge-offs of ~~$2,898,~~$3,038, or ~~0.04%~~0.11% of average loans (annualized), for the same period in ~~2020.~~2021. The charge-offs were fully reserved for in the Company’s allowance for credit losses on loans.

Subsequent recoveries, if any, are credited to the allowance for credit losses on loans.

Allowance for Credit Losses on Loans; Provision for Credit Losses on Loans. The allowance for credit losses is available to absorb credit losses inherent in the loans held for investment portfolio. Loan losses are charged against the allowance for credit losses when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management evaluates the adequacy of the allowance on a quarterly basis.

The appropriate level of the allowance is based on an ongoing analysis of the loan portfolio and represents an amount that management deems adequate to provide for inherent losses, including loans evaluated on a collective (pooled) basis and those evaluated on an individual basis as set forth in ASC 326. The credit loss estimation process involves procedures to appropriately consider the unique characteristics of the Company’s loan portfolio segments. Credit quality is assessed and monitored by evaluating various attributes, and the results of those evaluations are utilized in underwriting new loans and in the Company’s process for the estimation of expected credit losses. Credit quality monitoring procedures and indicators can include an assessment of problem loans, the types of loans, historical loss experience, new lending products, emerging credit trends, changes in the size and character of loan categories, and other factors, including our risk rating system, regulatory guidance and economic conditions, such as the unemployment rate and GDP growth in the national and local economies as well as trends in the market values of underlying collateral securing loans, all as determined based on input from management, loan review staff and other sources. This evaluation is complex and inherently subjective, as it requires estimates by management that are inherently uncertain and therefore susceptible to significant revision as more information becomes available. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and provision for credit loss in those future periods.

The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses has two basic components: first, a collective or pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics; and second, an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans.

•The allowance for credit losses for loans that share similar risk characteristics with other loans is calculated on a collective (or pooled) basis, where such loans are segregated into loan portfolio segments based upon similarity of credit risk. In

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determining the allowance for credit losses on loans evaluated on a collective basis, the Company categorizes loan pools based on loan type and/or risk rating. The Company uses two CECL models: (1) a loss rate model, based on average

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historical life-of-loan loss rates, is used for the Real Estate - 1-4 Family Mortgage, Real Estate - Construction and the Installment Loans to Individuals portfolio segments, 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. Internal factors include loss history, changes in credit quality (including movement between risk ratings) and/or credit concentration and the nature and volume of the respective loan portfolio segments. External factors include current and reasonable and supportable forecasted economic conditions and changes in collateral values. These factors are used to adjust the historical loss rates (as described above) to ensure that they reflect management’s expectation of future conditions based on a reasonable and supportable forecast period. To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made, when necessary, the models immediately revert back to the historical loss rates adjusted for qualitative factors related to current conditions.

•For loans that do not share similar risk characteristics with other loans, an individual analysis is performed to determine the expected credit loss. If the respective loan is collateral dependent (that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral), the expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of collateral is initially based on external appraisals. Generally, collateral values for loans for which measurement of expected losses is dependent on the fair value of such collateral are updated every twelve months, either from external third parties or in-house certified appraisers. Third-party appraisals are obtained from a pre-approved list of independent, third-party, local appraisal firms. The fair value of the collateral derived from the external appraisal is then adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. Other acceptable methods for determining the expected credit losses for individually evaluated loans (typically used for loans that are not collateral dependent) is a discounted cash flow approach or, if applicable, an observable market price. Once the expected credit loss amount is determined, an allowance equal to such expected credit loss is included in the allowance for credit losses.

In addition to its quarterly analysis of the allowance for credit losses, on a regular basis management and the Board of Directors review loan ratios. These ratios include the allowance for credit losses as a percentage of total loans, net charge-offs as a percentage of average loans, the provision for credit losses as a percentage of average loans, nonperforming loans as a percentage of total loans and the allowance coverage on nonperforming loans, among others. Also, management reviews past due ratios by officer, community bank and the Company as a whole.

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:


		September 30, 2021				December 31, 2020			September 30, 2020				March 31, 2022				December 31, 2021				March 31, 2021
		Balance		% of Total			Balance		% of Total		Balance			% of Total			Balance		% of Total			Balance		% of Total		Balance		% of Total
Commercial, financial, agricultural	Commercial, financial, agricultural	$	34,977	14.34	%		$	39,031	23.20	%	$	38,195		23.89	%	Commercial, financial, agricultural	$	33,606	14.02	%		$	33,922	14.20	%	$	37,592	21.04	%
Lease financing	Lease financing	1,570		0.79	%		1,624		0.69	%	1,832			0.75	%	Lease financing	1,582		0.87	%		1,486		0.76	%	1,546		0.70	%
Real estate – construction	Real estate – construction	16,169		10.89	%		16,047		7.85	%	13,819			6.98	%	Real estate – construction	18,411		11.85	%		16,419		11.03	%	14,977		8.94	%
Real estate – 1-4 family mortgage	Real estate – 1-4 family mortgage	32,181		27.21	%		32,165		24.68	%	32,705			24.89	%	Real estate – 1-4 family mortgage	36,848		27.54	%		32,356		27.19	%	31,694		25.13	%
Real estate – commercial mortgage	Real estate – commercial mortgage	73,895		45.27	%		76,127		41.66	%	70,582			41.30	%	Real estate – commercial mortgage	65,231		44.39	%		68,940		45.39	%	76,225		42.57	%
Installment loans to individuals	Installment loans to individuals	11,246		1.50	%		11,150		1.92	%	10,965			2.19	%	Installment loans to individuals	10,790		1.33	%		11,048		1.43	%	11,072		1.62	%
Total	Total	$	170,038	100.00	%		$	176,144	100.00	%	$	168,098		100.00	%	Total	$	166,468	100.00	%		$	164,171	100.00	%	$	173,106	100.00	%

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. The Company recorded a ~~negative~~ provision ~~(recovery)~~ for credit losses of ~~$1,200~~$1,500 during the

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~~third quarter and first nine months of 2021,~~2022, as compared to ano provision for credit losses ~~on loans of $23,100 in the third quarter of 2020 and $76,350~~recorded in the first ~~nine months~~quarter of ~~2020.~~2021. The Company’s allowance for credit ~~loss~~losses model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable

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period of two years. ~~Based on the continual improvements in these forecasts over the last few quarters, the Company’s allowance model indicated that a release of $1,200 of the allowance for credit losses was appropriate~~The provision activity during the ~~third~~current quarter was primarily driven by strong loan growth during the quarter and also the acquisition of ~~2021.~~Southeastern Commercial Finance, LLC.

The table below reflects the activity in the allowance for credit losses on loans for the periods presented:


		Three Months Ended						Nine Months Ended							Three Months Ended
		September 30,						September 30,							March 31,
		2021			2020			2021			2020					2022			2021
Balance at beginning of period	Balance at beginning of period	$	172,354		$	145,387		$	176,144		$	52,162		Balance at beginning of period		$	164,171		$	176,144
Impact of the adoption of ASC 326		—			—			—			42,484
Impact of PCD loans acquired during the period														Impact of PCD loans acquired during the period		1,648			—
Charge-offs	Charge-offs													Charge-offs
Commercial, financial, agricultural	Commercial, financial, agricultural	1,225			420			5,907			1,969			Commercial, financial, agricultural		2,102			3,498
Lease financing	Lease financing	13			168			13			168			Lease financing		7			—
Real estate – construction	Real estate – construction	—			136			52			668			Real estate – construction		—			52
Real estate – 1-4 family mortgage	Real estate – 1-4 family mortgage	276			720			529			1,083			Real estate – 1-4 family mortgage		163			101
Real estate – commercial mortgage	Real estate – commercial mortgage	184			553			416			2,600			Real estate – commercial mortgage		6			61
Installment loans to individuals	Installment loans to individuals	1,281			1,579			4,286			6,003			Installment loans to individuals		779			1,658
Total charge-offs	Total charge-offs	2,979			3,576			11,203			12,491			Total charge-offs		3,057			5,370
Recoveries	Recoveries													Recoveries
Commercial, financial, agricultural	Commercial, financial, agricultural	418			698			940			996			Commercial, financial, agricultural		1,136			289
Lease financing	Lease financing	11			1			36			11			Lease financing		12			11
Real estate – construction	Real estate – construction	—			31			13			31			Real estate – construction		—			13
Real estate – 1-4 family mortgage	Real estate – 1-4 family mortgage	193			152			855			288			Real estate – 1-4 family mortgage		178			261
Real estate – commercial mortgage	Real estate – commercial mortgage	190			711			504			2,451			Real estate – commercial mortgage		155			171
Installment loans to individuals	Installment loans to individuals	1,051			1,594			3,949			5,816			Installment loans to individuals		725			1,587
Total recoveries	Total recoveries	1,863			3,187			6,297			9,593			Total recoveries		2,206			2,332
Net charge-offs	Net charge-offs	1,116			389			4,906			2,898			Net charge-offs		851			3,038
Provision for credit losses on loans	Provision for credit losses on loans	(1,200)			23,100			(1,200)			76,350			Provision for credit losses on loans		1,500			—
Balance at end of period	Balance at end of period	$	170,038		$	168,098		$	170,038		$	168,098		Balance at end of period		$	166,468		$	173,106
Net charge-offs (annualized) to average loans	Net charge-offs (annualized) to average loans	0.04		%	0.01		%	0.06		%	0.04		%	Net charge-offs (annualized) to average loans		0.03		%	0.11		%
Net charge-offs to allowance for credit losses on loans	Net charge-offs to allowance for credit losses on loans	0.66		%	0.23		%	2.89		%	1.72		%	Net charge-offs to allowance for credit losses on loans		0.51		%	1.75		%
Allowance for credit losses on loans to:	Allowance for credit losses on loans to:													Allowance for credit losses on loans to:
Total loans	Total loans							1.70		%	1.52		%	Total loans		1.61		%	1.62		%
Total loans excluding PPP loans(1)	Total loans excluding PPP loans(1)							1.71		%	1.72		%	Total loans excluding PPP loans(1)		1.62		%	1.76		%
Nonperforming loans	Nonperforming loans							299.68		%	367.05		%	Nonperforming loans		318.65		%	308.54		%
Nonaccrual loans	Nonaccrual loans							304.96		%	385.09		%	Nonaccrual loans		320.16		%	322.11		%

(1) Allowance for credit losses on loans to total loans excluding PPP loans is a non-GAAP financial measure. A reconciliation of this financial measure from GAAP to non-GAAP as well as an explanation of why the Company provides non-GAAP financial measures can be found under the “Non-GAAP Financial Measures” heading at the end of this Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations

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The table below reflects annualized net charge-offs to daily average loans outstanding, by loan category, during the periods presented:

Nine Months Ended
September 30, 2021 September 30, 2020
Net Charge-offs Average Loans Annualized Net Charge-offs to Average Loans Net Charge-offs Average Loans Annualized Net Charge-offs to Average Loans
Commercial, financial, agricultural $ 4,967 $ 1,968,541 0.34% $ 973 $ 2,109,787 0.06%
Lease financing (23) 75,620 (0.04) 157 83,844 0.25
Real estate – construction 39 986,337 0.01 637 818,779 0.10
Real estate – 1-4 family mortgage (326) 2,711,619 (0.02) 795 2,808,646 0.04
Real estate – commercial mortgage (88) 4,519,793 — 149 4,335,604 —
Installment loans to individuals 337 169,526 0.27 187 293,877 0.08
Total $ 4,906 $ 10,431,436 0.06% $ 2,898 $ 10,450,537 0.04%


	Three Months Ended
	March 31, 2022					March 31, 2021
	Net Charge-offs		Average Loans		Annualized Net Charge-offs to Average Loans	Net Charge-offs		Average Loans		Annualized Net Charge-offs to Average Loans
Commercial, financial, agricultural	$	966	$	1,424,565	0.28%	$	3,209	$	2,382,454	0.55%
Lease financing	(5)		84,681		(0.02)	(11)		75,249		(0.06)
Real estate – construction	—		1,107,529		—	39		921,803		0.02
Real estate – 1-4 family mortgage	(15)		2,810,988		—	(160)		2,674,824		(0.02)
Real estate – commercial mortgage	(149)		4,540,731		(0.01)	(110)		4,558,003		(0.01)
Installment loans to individuals	54		140,017		0.16	71		190,478		0.15
Total	$	851	$	10,108,511	0.03%	$	3,038	$	10,802,811	0.11%

The following table provides further details of the Company’s net charge-offs ~~(recoveries)~~ of loans secured by real estate for the periods presented:


		Three Months Ended				Nine Months Ended					Three Months Ended
		September 30,				September 30,					March 31,
		2021		2020		2021		2020				2022		2021
Real estate – construction:	Real estate – construction:									Real estate – construction:
Residential	Residential	$	—	$	105	$	39	$	637	Residential		$	—	$	39

Total real estate – construction	Total real estate – construction	—		105		39		637		Total real estate – construction		—		39
Real estate – 1-4 family mortgage:	Real estate – 1-4 family mortgage:									Real estate – 1-4 family mortgage:
Primary	Primary	115		661		57		921		Primary		62		(79)
Home equity	Home equity	(46)		(29)		(109)		(51)		Home equity		22		(93)
Rental/investment	Rental/investment	7		(8)		(192)		20		Rental/investment		(2)		34
Land development	Land development	7		(56)		(82)		(95)		Land development		(97)		(22)
Total real estate – 1-4 family mortgage	Total real estate – 1-4 family mortgage	83		568		(326)		795		Total real estate – 1-4 family mortgage		(15)		(160)
Real estate – commercial mortgage:	Real estate – commercial mortgage:									Real estate – commercial mortgage:
Owner-occupied	Owner-occupied	18		(190)		(98)		1,224		Owner-occupied		(149)		(159)
Non-owner occupied	Non-owner occupied	(24)		33		(14)		(1,097)		Non-owner occupied		—		25
Land development	Land development	—		(1)		24		22		Land development		—		24
Total real estate – commercial mortgage	Total real estate – commercial mortgage	(6)		(158)		(88)		149		Total real estate – commercial mortgage		(149)		(110)
Total net charge-offs of loans secured by real estate	Total net charge-offs of loans secured by real estate	$	77	$	515	$	(375)	$	1,581	Total net charge-offs of loans secured by real estate		$	(164)	$	(231)

Allowance for Credit Losses on Unfunded Commitments; Provision for Credit Losses on Unfunded Commitments. The Company maintains a separate allowance for credit losses on unfunded loan commitments, which is included in the “Other liabilities” line item on the Consolidated Balance Sheets. Management estimates the amount of expected losses on unfunded loan commitments by calculating a likelihood of funding over the contractual period for exposures that are not unconditionally cancellable by the Company and applying the loss factors used in the allowance for credit losses on loans methodology described above to unfunded commitments for each loan type. No credit loss estimate is reported for off-balance-sheet credit exposures that are unconditionally cancellable by the Company. A roll-forward of the allowance for credit losses on unfunded commitments is shown in the ~~tables~~table below.

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Three Months Ended September 30,		2021		2020
Three Months Ended March 31,						Three Months Ended March 31,	2022		2021
Allowance for credit losses on unfunded loan commitments:	Allowance for credit losses on unfunded loan commitments:					Allowance for credit losses on unfunded loan commitments:
Beginning balance	Beginning balance	$	20,535	$	17,335	Beginning balance	$	20,035	$	20,535

(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense)	(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense)	(200)		2,700		(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense)	(550)		—
Ending balance	Ending balance	$	20,335	$	20,035	Ending balance	$	19,485	$	20,535

Nine Months Ended September 30,		2021		2020
Allowance for credit losses on unfunded loan commitments:
Beginning balance		$	20,535	$	946
Impact of the adoption of ASC 326		—		10,389
(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense)		(200)		8,700
Ending balance		$	20,335	$	20,035

Nonperforming Assets. Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming loans are those on which the accrual of interest has stopped or loans which are contractually 90 days past due on which interest continues to accrue. Generally, the accrual of interest is discontinued when the full collection of principal or interest is in doubt or when the payment of principal or interest has been contractually 90 days past due, unless the obligation is both well secured and in the process of collection. Management, the problem asset resolution committee and our loan review staff closely monitor loans that are considered to be nonperforming.

Other real estate owned consists of properties acquired through foreclosure or acceptance of a deed in lieu of foreclosure. These properties are carried at the lower of cost or fair market value based on appraised value less estimated selling costs. Losses arising at the time of foreclosure of properties are charged against the allowance for credit losses on loans. Reductions in the carrying value subsequent to acquisition are charged to earnings and are included in “Other real estate owned” in the Consolidated Statements of Income.

The following tables provide details of the Company’s non purchased and purchased nonperforming assets as of the dates presented.

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		Non Purchased		Purchased		Total				Non Purchased		Purchased		Total
September 30, 2021
March 31, 2022									March 31, 2022
Nonaccruing loans	Nonaccruing loans	$	29,266	$	26,492	$	55,758		Nonaccruing loans	$	32,573	$	19,422	$	51,995
Accruing loans past due 90 days or more	Accruing loans past due 90 days or more	908		74		982			Accruing loans past due 90 days or more	209		38		247
Total nonperforming loans	Total nonperforming loans	30,174		26,566		56,740			Total nonperforming loans	32,782		19,460		52,242
Other real estate owned	Other real estate owned	2,252		2,453		4,705			Other real estate owned	531		1,531		2,062

Total nonperforming assets	Total nonperforming assets	$	32,426	$	29,019	$	61,445		Total nonperforming assets	$	33,313	$	20,991	$	54,304
Nonperforming loans to total loans	Nonperforming loans to total loans					0.57		%	Nonperforming loans to total loans					0.51		%
Nonaccruing loans to total loans	Nonaccruing loans to total loans					0.56		%	Nonaccruing loans to total loans					0.50		%
Nonperforming assets to total assets	Nonperforming assets to total assets					0.38		%	Nonperforming assets to total assets					0.32		%

December 31, 2020
December 31, 2021									December 31, 2021
Nonaccruing loans	Nonaccruing loans	$	20,369	$	31,051	$	51,420		Nonaccruing loans	$	30,751	$	18,613	$	49,364
Accruing loans past due 90 days or more	Accruing loans past due 90 days or more	3,783		267		4,050			Accruing loans past due 90 days or more	1,074		367		1,441
Total nonperforming loans	Total nonperforming loans	24,152		31,318		55,470			Total nonperforming loans	31,825		18,980		50,805
Other real estate owned	Other real estate owned	2,045		3,927		5,972			Other real estate owned	951		1,589		2,540

Total nonperforming assets	Total nonperforming assets	$	26,197	$	35,245	$	61,442		Total nonperforming assets	$	32,776	$	20,569	$	53,345
Nonperforming loans to total loans	Nonperforming loans to total loans					0.51		%	Nonperforming loans to total loans					0.51		%
Nonaccruing loans to total loans	Nonaccruing loans to total loans					0.47		%	Nonaccruing loans to total loans					0.49		%
Nonperforming assets to total assets	Nonperforming assets to total assets					0.41		%	Nonperforming assets to total assets					0.32		%

The level of nonperforming loans increased ~~$1,270~~$1,437 from December 31, ~~2020~~2021 to ~~September 30, 2021,~~March 31, 2022, while OREO decreased ~~$1,267~~$478 during the same period.

The following table presents nonperforming loans by loan category as of the dates presented:

September 30,
2021 December 31, 2020 September 30,
2020
Commercial, financial, agricultural $ 16,027 $ 16,668 $ 17,422
Lease financing 11 48 —
Real estate – construction:
Residential — 497 —
Commercial — — —
Total real estate – construction — 497 —
Real estate – 1-4 family mortgage:
Primary 17,378 16,317 15,583
Home equity 2,041 2,273 1,949
Rental/investment 1,016 1,526 1,284
Land development 243 345 395
Total real estate – 1-4 family mortgage 20,678 20,461 19,211
Real estate – commercial mortgage:
Owner-occupied 5,732 6,364 6,805
Non-owner occupied 13,412 10,204 1,201
Land development 366 572 519
Total real estate – commercial mortgage 19,510 17,140 8,525
Installment loans to individuals 514 656 638
Total nonperforming loans $ 56,740 $ 55,470 $ 45,796

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	March 31, 2022		December 31, 2021		March 31, 2021
Commercial, financial, agricultural	$	13,177	$	13,131	$	15,992
Lease financing	—		11		—




Real estate – 1-4 family mortgage:
Primary	20,331		19,533		16,275
Home equity	2,233		1,719		2,436
Rental/investment	878		1,595		1,168
Land development	521		257		85
Total real estate – 1-4 family mortgage	23,963		23,104		19,964
Real estate – commercial mortgage:
Owner-occupied	5,700		5,039		4,923
Non-owner occupied	8,558		8,535		13,998
Land development	485		470		566
Total real estate – commercial mortgage	14,743		14,044		19,487
Installment loans to individuals	359		515		662

Total nonperforming loans	$	52,242	$	50,805	$	56,105

Total nonperforming loans as a percentage of total loans were ~~0.57%~~0.51% as of ~~September 30, 2021~~March 31, 2022 as compared to 0.51% and ~~0.41%~~0.52% as of December 31, ~~2020~~2021 and ~~September 30, 2020,~~March 31, 2021, respectively. The Company’s coverage ratio, or its allowance for credit losses on loans as a percentage of nonperforming loans, was ~~299.68%~~318.65% as of ~~September 30, 2021~~March 31, 2022 as compared to ~~317.55%~~323.14% as of December 31, ~~2020~~2021 and ~~367.05%~~308.54% as of ~~September 30, 2020.~~

March 31, 2021.

Management has evaluated the aforementioned loans and other loans classified as nonperforming and believes that all nonperforming loans have been adequately reserved for in the allowance for credit losses at ~~September 30, 2021.~~March 31, 2022. Management also continually monitors past due loans for potential credit quality deterioration. Total loans 30-89 days past due but still accruing interest were ~~$14,806~~$30,617 at ~~September 30, 2021~~March 31, 2022 as compared to ~~$26,286~~$27,604 at December 31, ~~2020~~2021 and ~~$16,644~~$21,801 at ~~September 30, 2020.~~

March 31, 2021.

Although not classified as nonperforming loans, restructured loans are another category of assets that contribute to our credit risk. Restructured loans are those for which concessions have been granted to the borrower due to a deterioration of the borrower’s financial condition and are performing in accordance with the new terms. Such concessions may include reduction in interest rates or deferral of interest or principal payments. In evaluating whether to restructure a loan, management analyzes the long-term financial condition of the borrower, including guarantor and collateral support, to determine whether the proposed concessions will increase the likelihood of repayment of principal and interest. Restructured loans that are not performing in accordance with their restructured terms that are either contractually 90 days past due or placed on nonaccrual status are reported as nonperforming loans.

As shown below, restructured loans totaled ~~$20,183~~$25,320 at ~~September 30, 2021~~March 31, 2022 as compared to ~~$20,448~~$20,259 at December 31, ~~2020~~2021 and ~~$20,322~~$20,370 at ~~September 30, 2020.~~March 31, 2021. At ~~September 30, 2021,~~March 31, 2022, loans restructured through interest rate concessions represented ~~34%~~23% of total restructured loans, while loans restructured by a concession in payment terms represented the remainder. The following table provides further details of the Company’s restructured loans in compliance with their modified terms as of the dates presented:

September 30,
2021 December 31, 2020 September 30,
2020
Commercial, financial, agricultural $ 1,062 $ 2,326 $ 2,417
Real estate – 1-4 family mortgage:
Primary 11,415 9,460 8,359
Home equity 299 332 333
Rental/investment 354 432 724
Total real estate – 1-4 family mortgage 12,068 10,224 9,416
Real estate – commercial mortgage:
Owner-occupied 5,546 6,838 6,854
Non-owner occupied 1,357 797 1,355
Land development 76 183 186
Total real estate – commercial mortgage 6,979 7,818 8,395
Installment loans to individuals 74 80 94
Total restructured loans in compliance with modified terms $ 20,183 $ 20,448 $ 20,322

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	March 31, 2022		December 31, 2021		March 31, 2021
Commercial, financial, agricultural	$	774	$	967	$	2,639





Real estate – 1-4 family mortgage:
Primary	12,196		11,750		8,363
Home equity	191		298		331
Rental/investment	344		350		427
Land development	94		—		—
Total real estate – 1-4 family mortgage	12,825		12,398		9,121
Real estate – commercial mortgage:
Owner-occupied	3,667		5,407		6,757
Non-owner occupied	7,911		1,341		1,595
Land development	74		75		179
Total real estate – commercial mortgage	11,652		6,823		8,531
Installment loans to individuals	69		71		79
Total restructured loans in compliance with modified terms	$	25,320	$	20,259	$	20,370

Changes in the Company’s restructured loans are set forth in the table below:

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		2021		2020			2022		2021
Balance at January 1,	Balance at January 1,	$	20,448	$	11,954	Balance at January 1,	$	20,259	$	20,448
Additional advances or loans with concessions	Additional advances or loans with concessions	10,852		12,946		Additional advances or loans with concessions	7,513		1,621
Reclassified as performing restructured loan	Reclassified as performing restructured loan	150		428		Reclassified as performing restructured loan	302		—
Reductions due to:	Reductions due to:					Reductions due to:
Reclassified as nonperforming	Reclassified as nonperforming	(2,855)		(2,999)		Reclassified as nonperforming	(493)		(1,495)
Paid in full	Paid in full	(7,341)		(1,360)		Paid in full	(2,126)		—

Charge-offs		(205)		(3)

Paydowns	Paydowns	(866)		(644)		Paydowns	(135)		(204)

Balance at September 30,		$	20,183	$	20,322
Balance at March 31,						Balance at March 31,	$	25,320	$	20,370

The following table shows the principal amounts of nonperforming and restructured loans as of the dates presented. All loans where information exists about possible credit problems that would cause us to have serious doubts about the borrower’s ability to comply with the current repayment terms of the loan have been reflected in the table below.


		September 30, 2021		December 31, 2020		September 30, 2020			March 31, 2022		December 31, 2021		March 31, 2021
Nonaccruing loans	Nonaccruing loans	$	55,758	$	51,420	$	43,652	Nonaccruing loans	$	51,995	$	49,364	$	53,741
Accruing loans past due 90 days or more	Accruing loans past due 90 days or more	982		4,050		2,144		Accruing loans past due 90 days or more	247		1,441		2,364
Total nonperforming loans	Total nonperforming loans	56,740		55,470		45,796		Total nonperforming loans	52,242		50,805		56,105
Restructured loans in compliance with modified terms	Restructured loans in compliance with modified terms	20,183		20,448		20,322		Restructured loans in compliance with modified terms	25,320		20,259		20,370
Total nonperforming and restructured loans	Total nonperforming and restructured loans	$	76,923	$	75,918	$	66,118	Total nonperforming and restructured loans	$	77,562	$	71,064	$	76,475

The following table provides details of the Company’s other real estate owned as of the dates presented:

September 30,
2021 December 31, 2020 September 30,
2020
Residential real estate $ 503 $ 179 $ 1,870
Commercial real estate 2,671 2,665 2,403
Residential land development 315 1,013 1,669
Commercial land development 1,216 2,115 2,211
Total other real estate owned $ 4,705 $ 5,972 $ 8,153

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	March 31, 2022		December 31, 2021		March 31, 2021
Residential real estate	$	376	$	259	$	484
Commercial real estate	175		761		3,109
Residential land development	295		305		341
Commercial land development	1,216		1,215		2,037

Total other real estate owned	$	2,062	$	2,540	$	5,971

Changes in the Company’s other real estate owned were as follows:


		2021		2020			2022		2021
Balance at January 1,	Balance at January 1,	$	5,972	$	8,010	Balance at January 1,	$	2,540	$	5,972

Transfers of loans	Transfers of loans	3,171		7,887		Transfers of loans	200		2,039

Impairments	Impairments	(290)		(1,647)		Impairments	(14)		(70)
Dispositions	Dispositions	(4,007)		(6,047)		Dispositions	(665)		(1,906)
Other	Other	(141)		(50)		Other	1		(64)
Balance at September 30,		$	4,705	$	8,153
Balance at March 31,						Balance at March 31,	$	2,062	$	5,971

Other real estate owned with a cost basis of ~~$4,007~~$665 was sold during the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, resulting in a net gain of ~~$74,~~$291, while other real estate owned with a cost basis of ~~$6,047~~$1,906 was sold during the ~~nine~~three months ended ~~September 30, 2020,~~March 31, 2021, resulting in a net ~~loss~~gain of ~~$27.~~

$56.

Interest Rate Risk

Market risk is the risk of loss from adverse changes in market prices and rates. The majority of assets and liabilities of a financial institution are monetary in nature and therefore differ greatly from most commercial and industrial companies that have significant investments in fixed assets and inventories. Our market risk arises primarily from interest rate risk inherent in lending and deposit-taking activities. Management believes a significant impact on the Company’s financial results stems from

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our ability to react to changes in interest rates. A sudden and substantial change in interest rates may adversely impact our earnings because the interest rates borne by assets and liabilities do not change at the same speed, to the same extent or on the same basis.

Because of the impact of interest rate fluctuations on our profitability, the Board of Directors and management actively monitor and manage our interest rate risk exposure. We have an Asset/Liability Committee (“ALCO”) that is authorized by the Board of Directors to monitor our interest rate sensitivity and to make decisions relating to that process. The ALCO’s goal is to structure our asset/liability composition to maximize net interest income while managing interest rate risk so as to minimize the adverse impact of changes in interest rates on net interest income and capital. The ALCO uses an asset/liability model as the primary quantitative tool in measuring the amount of interest rate risk associated with changing market rates. The model is used to perform both net interest income forecast simulations for multiple year horizons and economic value of equity (“EVE”) analyses, each under various interest rate scenarios, which could impact the results presented in the table below.

Net interest income simulations measure the short and medium-term earnings exposure from changes in market interest rates in a rigorous and explicit fashion. Our current financial position is combined with assumptions regarding future business to calculate net interest income under various hypothetical rate scenarios. EVE measures our long-term earnings exposure from changes in market rates of interest. EVE is defined as the present value of assets minus the present value of liabilities at a point in time for a given set of market rate assumptions. 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.

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~~April 1, ~~2021,~~2022, in each case as compared to the result under rates present in the market on ~~September 30, 2021.~~March 31, 2022. 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.

Percentage Change In:
Immediate Change in Rates of (in basis points): Economic Value Equity (EVE) Earning at Risk (Net Interest Income)
Static 1-12 Months 13-24 Months
+200 11.83% 16.87% 22.94%
+100 7.20% 8.57% 12.20%

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	Percentage Change In:
Immediate Change in Rates of (in basis points):	Economic Value Equity (EVE)	Earning at Risk (Net Interest Income)
	Static	1-12 Months	13-24 Months
+400	12.17%	31.70%	38.29%
+300	9.78%	23.94%	28.87%
+200	7.21%	16.14%	19.58%
+100	4.26%	8.20%	10.21%

The rate shock results for the net interest income simulations for the next twenty-four months produce an asset sensitive position at ~~September 30, 2021~~March 31, 2022 and are all within the parameters set by the Board of Directors. 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.

The scenarios assume instantaneous movements in interest rates in increments of plus 100, 200, 300 and ~~200.~~400. As interest rates are adjusted over a period of time, it is our strategy to proactively change the volume and mix of our balance sheet in order to mitigate our interest rate risk. The computation of the prospective effects of hypothetical interest rate changes requires numerous assumptions, including asset prepayment speeds, the impact of competitive factors on our pricing of loans and deposits, how responsive our deposit repricing is to the change in market rates and the expected life of non-maturity deposits. These business assumptions are based upon our experience, business plans and published industry experience; however, such assumptions may not necessarily reflect the manner or timing in which cash flows, asset yields and liability costs respond to changes in market rates. Because these assumptions are inherently uncertain, actual results will differ from simulated results.

The Company utilizes derivative financial instruments, including interest rate contracts such as swaps, caps and/or floors, forward commitments, and interest rate lock commitments, as part of its ongoing efforts to mitigate its interest rate risk exposure and to facilitate the needs of its customers. The Company enters into derivative instruments that are not designated as hedging instruments to help its commercial customers manage their exposure to interest rate fluctuations. To mitigate the interest rate risk associated with these customer contracts, the Company enters into an offsetting derivative contract position with other financial institutions. The Company manages its credit risk, or potential risk of default by its commercial customers, through credit limit approval and monitoring procedures. At September 30, 2021, the Company had notional amounts of $190,200 on interest rate contracts with corporate customers and $190,200 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.

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Additionally, the Company enters into interest rate lock commitments with its customers to mitigate the interest rate risk associated with the commitments to fund fixed-rate and adjustable rate residential mortgage loans and also enters into forward commitments to sell residential mortgage loans to secondary market investors.

The Company also enters into forward interest rate swap contracts on its FHLB borrowings and its junior subordinated debentures that are accounted for as cash flow hedges. Under each of these contracts, the Company pays a fixed rate of interest and receives a variable rate of interest based on the three-month or one-month LIBOR plus a predetermined spread. The Company entered into an interest rate swap contract on its subordinated notes that is accounted for as a fair value hedge. Under this contract, the Company pays a variable rate of interest based on the three-month LIBOR plus a predetermined spread and receives a fixed rate of interest.

exposure. For more information about the Company’s derivatives, see the information under the heading “Loan Commitments and Other Off-Balance Sheet Arrangements” in the Liquidity and Capital Resources section below and Note 10, “Derivative Instruments,” in the Notes to Consolidated Financial Statements of the Company in Item 1, Financial Statements.

Liquidity and Capital Resources

Liquidity management is the ability to meet the cash flow requirements of customers who may be either depositors wishing to withdraw funds or borrowers needing assurance that sufficient funds will be available to meet their credit needs.

Core deposits, which are deposits excluding time deposits greater than $250,000, are the major source of funds used by the Bank to meet cash flow needs. Maintaining the ability to acquire these funds as needed in a variety of markets is the key to assuring the Bank’s liquidity. Management continually monitors the Bank’s liquidity and non-core dependency ratios to ensure compliance with targets established by the Asset/Liability Management Committee.

Our investment portfolio is another alternative for meeting liquidity needs. These assets generally have readily available markets that offer conversions to cash as needed. Within the next twelve months, the securities portfolio is forecasted to generate cash flow through principal payments and maturities equal to approximately ~~18.85%~~13.31% 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. At ~~September 30, 2021,~~March 31, 2022, securities with a carrying value of ~~$557,463~~$702,992 were pledged to secure public fund deposits and as collateral for short-term borrowings and derivative instruments as compared to securities with a carrying value of ~~$614,610~~$629,174 similarly pledged at December 31, ~~2020.~~

2021.

Other sources available for meeting liquidity needs include federal funds purchased and short-term and long-term advances from the FHLB. Interest is charged at the prevailing market rate on federal funds purchased and FHLB advances. There were no$100,000 in short-term borrowings from the FHLB at ~~September 30, 2021 or~~March 31, 2022, as compared to no such borrowings at December 31, ~~2020.~~2021. 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. At ~~September 30, 2021,~~March 31, 2022, the balance of our outstanding long-term advances with the FHLB was ~~$150,425~~$408 compared to ~~$152,167~~$417 at December 31, ~~2020.~~2021. The total amount of the remaining credit available to us from the FHLB at ~~September 30, 2021~~March 31, 2022 was ~~$3,977,848.~~$4,047,128. We also maintain lines of credit with other commercial banks totaling $180,000. These are unsecured lines of credit with the majority maturing at various times within the next twelve months. There were no amounts outstanding under these lines of credit at ~~September 30, 2021~~March 31, 2022 or December 31, ~~2020.~~2021.

~~In 2016 and 2020,~~

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Finally, we ~~accessed~~can access the capital markets to ~~generate~~meet liquidity needs, as we did in 2016, 2020 and 2021 in the form of subordinated notes. ~~In addition, we assumed subordinated notes~~The Company maintains a shelf registration statement with the Securities and Exchange Commission (“SEC”). The shelf registration statement, which was effective upon filing, allows the Company to raise capital from time to time through the sale of common stock, preferred stock, depositary shares, debt securities, rights, warrants and units, or a combination thereof, subject to market conditions. Specific terms and prices will be determined at the time of any offering under a separate prospectus supplement that the Company will file with the SEC at the time of the specific offering. The proceeds of the sale of securities, if and when offered, will be used for general corporate purposes or as otherwise described in ~~connection with our acquisition~~the prospectus supplement applicable to the offering and could include the expansion of ~~Metropolitan BancGroup, Inc. in 2017.~~the Company's banking, insurance and wealth management operations as well as other business opportunities. The carrying value of the subordinated notes, net of unamortized debt issuance costs, was ~~$207,210~~$323,490 at ~~September 30, 2021.~~

March 31, 2022. We redeemed $30,000 of subordinated notes in the first quarter of 2022.

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:

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		Percentage of Total Average Deposits and Borrowed Funds				Cost of Funds					Percentage of Total Average Deposits and Borrowed Funds				Cost of Funds
		Nine Months Ended				Nine Months Ended					Three Months Ended				Three Months Ended
		September 30,				September 30,					March 31,				March 31,
		2021		2020		2021		2020			2022		2021		2022		2021
Noninterest-bearing demand	Noninterest-bearing demand	31.60	%	27.03	%	—	%	—	%	Noninterest-bearing demand	32.65	%	30.20	%	—	%	—	%
Interest-bearing demand	Interest-bearing demand	45.75		42.95		0.26		0.51		Interest-bearing demand	46.59		46.17		0.22		0.27
Savings	Savings	7.17		6.17		0.08		0.11		Savings	7.70		6.90		0.05		0.08
Time deposits	Time deposits	11.85		16.79		0.90		1.59		Time deposits	9.65		12.94		0.55		1.02
Short-term borrowings	Short-term borrowings	0.10		3.85		0.30		1.02		Short-term borrowings	0.19		0.10		0.48		0.31
Long-term Federal Home Loan Bank advances	Long-term Federal Home Loan Bank advances	1.14		1.27		0.03		0.80		Long-term Federal Home Loan Bank advances	0.01		1.19		1.86		0.05
Subordinated notes	Subordinated notes	1.56		1.03		4.97		5.54		Subordinated notes	2.43		1.63		4.26		5.15
Other borrowed funds	Other borrowed funds	0.83		0.91		4.27		4.56		Other borrowed funds	0.78		0.87		4.41		4.24
Total deposits and borrowed funds	Total deposits and borrowed funds	100.00	%	100.00	%	0.34	%	0.64	%	Total deposits and borrowed funds	100.00	%	100.00	%	0.30	%	0.38	%

Our strategy in choosing funds is focused on minimizing cost in the context of our balance sheet composition and interest rate risk position. Accordingly, management targets growth of noninterest-bearing deposits. While we do not control the types of deposit instruments our clients choose, we do influence those choices with the rates and the deposit specials we offer. We constantly monitor our funds position and evaluate the effect that various funding sources have on our financial position.

Cash and cash equivalents were ~~$1,476,141~~$1,607,493 at ~~September 30, 2021,~~March 31, 2022, as compared to ~~$414,105~~$1,261,916 at ~~September 30, 2020.~~March 31, 2021. Cash used in investing activities for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 was ~~$372,260,~~$584,800, as compared to cash ~~used in~~provided by investing activities of ~~$1,355,398~~$29,466 for the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021. Proceeds from the sale, maturity or call of securities within our investment portfolio were ~~$505,926~~$135,775 for the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, as compared to ~~$323,136~~$250,773 for the same period in ~~2020.~~2021. These proceeds were primarily reinvested into the investment portfolio. Purchases of investment securities were ~~$1,743,105~~$365,069 for the first ~~nine~~three months of ~~2021,~~2022, as compared to ~~$304,955~~$465,245 for the same period in ~~2020.~~

2021.

Cash provided by financing activities for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 was ~~$1,125,027,~~$108,512, as compared to ~~$1,310,528~~$656,035 for the same period in ~~2020.~~2021. Deposits increased ~~$1,195,748~~$85,173 and ~~$1,721,118~~$677,827 for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively.

Restrictions on Bank Dividends, Loans and Advances

The Company’s liquidity and capital resources, as well as its ability to pay dividends to its shareholders, are substantially dependent on the ability of the Renasant Bank to transfer funds to the Company in the form of dividends, loans and advances. Under Mississippi law, a Mississippi bank may not pay dividends unless its earned surplus is in excess of three times capital stock. A Mississippi bank with earned surplus in excess of three times capital stock may pay a dividend, subject to the approval of the Mississippi Department of Banking and Consumer Finance (the “DBCF”). In addition, the FDIC also has the authority to prohibit the Bank from engaging in business practices that the FDIC considers to be unsafe or unsound, which, depending on the financial condition of the bank, could include the payment of dividends. Accordingly, the approval of the DBCF is required prior to the Bank paying dividends to the Company, and under certain circumstances the approval of the FDIC may be required.

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Federal Reserve regulations also limit the amount the Bank may loan to the Company unless such loans are collateralized by specific obligations. At ~~September 30, 2021,~~March 31, 2022, the maximum amount available for transfer from the Bank to the Company in the form of loans was ~~$157,470.~~$171,473. The Company maintains a $3,000 line of credit collateralized by cash with the Bank. There were no amounts outstanding under this line of credit at ~~September 30, 2021.~~March 31, 2022.

These restrictions did not have any impact on the Company’s ability to meet its cash obligations in the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, nor does management expect such restrictions to materially impact the Company’s ability to meet its currently-anticipated cash obligations.

~~Potential Demands on Liquidity from~~Loan Commitments and Other Off-Balance Sheet Arrangements

The Company enters into loan commitments and standby letters of credit in the normal course of its business. Loan commitments are made to accommodate the financial needs of the Company’s customers. Standby letters of credit commit the Company to make payments on behalf of customers when certain specified future events occur. Both arrangements have credit risk essentially the same as that involved in extending loans to customers and are subject to the Company’s normal credit

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policies, including establishing a provision for credit losses on unfunded commitments. Collateral (e.g., securities, receivables, inventory, equipment, etc.) is obtained based on management’s credit assessment of the customer.

Loan commitments and standby letters of credit do not necessarily represent future cash requirements of the Company in that while the borrower has the ability to draw upon these commitments at any time, these commitments often expire without being drawn upon. The Company’s unfunded loan commitments and standby letters of credit outstanding were as follows as of the dates presented:


		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Loan commitments	Loan commitments	$	3,058,740	$	2,749,988	Loan commitments	$	3,254,402	$	3,104,940
Standby letters of credit	Standby letters of credit	95,201		90,597		Standby letters of credit	89,723		89,830

The Company closely monitors the amount of remaining future commitments to borrowers in light of prevailing economic conditions and adjusts these commitments and the provision related thereto as necessary. The Company will continue this process as new commitments are entered into or existing commitments are renewed. For a more detailed discussion related to the allowance and provision for credit losses on unfunded loan commitments, refer to the “Risk Management” section above.

The Company utilizes derivative financial instruments, including interest rate contracts such as swaps, caps and/or floors, as part of its ongoing efforts to mitigate its interest rate risk exposure and to facilitate the needs of its customers. The Company enters into derivative instruments that are not designated as hedging instruments to help its commercial customers manage their exposure to interest rate fluctuations. To mitigate the interest rate risk associated with these customer contracts, the Company enters into an offsetting derivative contract position with other financial institutions. The Company manages its credit risk, or potential risk of default by its commercial customers, through credit limit approval and monitoring procedures. At March 31, 2022, the Company had notional amounts of $179,648 on interest rate contracts with corporate customers and $179,648 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.

For more information about the Company’s derivatives, see Note 10, “Derivative Instruments,” in the Notes to Consolidated Financial Statements of the Company in Item 1, Financial Statements.

Shareholders’ Equity and Regulatory Matters

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Total shareholders’ equity of the Company was ~~$2,203,944~~$2,137,642 at ~~September 30, 2021~~March 31, 2022 compared to ~~$2,132,733~~$2,209,853 at December 31, ~~2020.~~2021. Book value per share was ~~$39.53~~$38.25 and ~~$37.95~~$39.63 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively. The ~~growth~~decrease in shareholders’ equity was attributable to ~~earnings retention offset by~~ changes in accumulated other comprehensive income and dividends ~~declared.~~

The Company maintains a shelf registration statement with the Securities and Exchange Commission (“SEC”). The shelf registration statement, which was effective upon filing, allows the Company to raise capital from time to time through the sale of common stock, preferred stock, depositary shares, debt securities, rights, warrants and units, or a combination thereof, subject to market conditions. Specific terms and prices will be determined at the time of any offering under a separate prospectus supplement that the Company will file with the SEC at the time of the specific offering. 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, insurance and wealth management operations as well as other business opportunities.

~~The Company repurchased $21,315 of its common stock at a weighted average price of $34.82 per share during the first nine months of 2021.~~

declared, partially offset by current period earnings.

On October 26, 2021, the Company’s Board of Directors approved a new stock repurchase program, ~~(the previous program having just expired),~~ authorizing the Company to repurchase up to $50,000 of its outstanding common stock, either in open market purchases or privately-negotiated transactions. The new repurchase program will remain in effect for one year or, if earlier, the repurchase of the entire amount of common stock authorized to be repurchased.

The Company did not repurchase any of its common stock under the stock repurchase plan in the first quarter of 2022.

The Company has junior subordinated debentures with a carrying value of ~~$111,228~~$111,518 at ~~September 30, 2021,~~March 31, 2022, of which ~~$107,637~~$107,927 is included in the Company’s Tier 1 capital. 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, 2021.~~March 31, 2022. Although our existing junior subordinated debentures are currently unaffected by these Federal Reserve guidelines, on account of changes enacted as part of the Dodd-Frank Act, any new trust preferred securities are not includable in Tier 1 capital. Further, if as a result of an acquisition of a financial institution we exceed $15,000,000 in assets, or if we make any acquisition of a financial institution after we have exceeded $15,000,000 in assets, we will lose Tier 1 treatment of our junior subordinated debentures.

The Company has subordinated notes with a ~~carrying~~par value of ~~$207,210~~$340,000 at ~~September 30, 2021,~~March 31, 2022, of which ~~$197,360~~$335,244 is included in the Company’s Tier 2 capital.

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Capital Tiers

Tier 1 Capital to
Average Assets
(Leverage)

Common Equity Tier 1 to
Risk - Weighted Assets

Tier 1 Capital to
Risk - Weighted
Assets

Total Capital to
Risk - Weighted
Assets

Well capitalized

5% or above

6.5% or above

8% or above

10% or above

Adequately capitalized

4% or above

4.5% or above

6% or above

8% or above

Undercapitalized

Less than 4%

Less than 4.5%

Less than 6%

Less than 8%

Significantly undercapitalized

Less than 3%

Less than 4%

Less than 6%

Critically undercapitalized

Tangible Equity / Total Assets less than 2%

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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:


		Actual				Minimum Capital Requirement to be Well Capitalized				Minimum Capital Requirement to be Adequately Capitalized (including the Capital Conservation Buffer)					Actual				Minimum Capital Requirement to be Well Capitalized				Minimum Capital Requirement to be Adequately Capitalized (including the Capital Conservation Buffer)
		Amount		Ratio		Amount		Ratio		Amount		Ratio			Amount		Ratio		Amount		Ratio		Amount		Ratio
September 30, 2021
March 31, 2022														March 31, 2022
Renasant Corporation:	Renasant Corporation:													Renasant Corporation:
Risk-based capital ratios:	Risk-based capital ratios:													Risk-based capital ratios:
Common equity tier 1 capital ratio	Common equity tier 1 capital ratio	$	1,287,684	11.02	%	$	759,458	6.50	%	$	817,878	7.00	%	Common equity tier 1 capital ratio	$	1,316,342	10.78	%	$	793,569	6.50	%	$	854,613	7.00	%
Tier 1 risk-based capital ratio	Tier 1 risk-based capital ratio	1,395,321		11.94	%	934,717		8.00	%	993,137		8.50	%	Tier 1 risk-based capital ratio	1,424,268		11.67	%	976,700		8.00	%	1,037,744		8.50	%
Total risk-based capital ratio	Total risk-based capital ratio	1,712,500		14.66	%	1,168,397		10.00	%	1,226,816		10.50	%	Total risk-based capital ratio	1,892,630		15.50	%	1,220,875		10.00	%	1,281,919		10.50	%
Leverage capital ratios:	Leverage capital ratios:													Leverage capital ratios:
Tier 1 leverage ratio	Tier 1 leverage ratio	1,395,321		9.18	%	759,755		5.00	%	607,804		4.00	%	Tier 1 leverage ratio	1,424,268		9.00	%	791,134		5.00	%	632,907		4.00	%

Renasant Bank:	Renasant Bank:													Renasant Bank:
Risk-based capital ratios:	Risk-based capital ratios:													Risk-based capital ratios:
Common equity tier 1 capital ratio	Common equity tier 1 capital ratio	$	1,454,879	12.45	%	$	759,370	6.50	%	$	817,783	7.00	%	Common equity tier 1 capital ratio	$	1,581,608	12.95	%	$	793,942	6.50	%	$	855,014	7.00	%
Tier 1 risk-based capital ratio	Tier 1 risk-based capital ratio	1,454,879		12.45	%	934,609		8.00	%	993,022		8.50	%	Tier 1 risk-based capital ratio	1,581,608		12.95	%	977,159		8.00	%	1,038,232		8.50	%
Total risk-based capital ratio	Total risk-based capital ratio	1,574,697		13.48	%	1,168,261		10.00	%	1,226,674		10.50	%	Total risk-based capital ratio	1,714,725		14.04	%	1,221,449		10.00	%	1,282,521		10.50	%
Leverage capital ratios:	Leverage capital ratios:													Leverage capital ratios:
Tier 1 leverage ratio	Tier 1 leverage ratio	1,454,879		9.58	%	758,964		5.00	%	607,171		4.00	%	Tier 1 leverage ratio	1,581,608		10.00	%	790,518		5.00	%	632,414		4.00	%

December 31, 2020
December 31, 2021														December 31, 2021
Renasant Corporation:	Renasant Corporation:													Renasant Corporation:
Risk-based capital ratios:	Risk-based capital ratios:													Risk-based capital ratios:
Common equity tier 1 capital ratio	Common equity tier 1 capital ratio	$	1,199,394	10.93	%	$	713,086	6.50	%	$	767,939	7.00	%	Common equity tier 1 capital ratio	$	1,314,295	11.18	%	$	763,952	6.50	%	$	822,717	7.00	%
Tier 1 risk-based capital ratio	Tier 1 risk-based capital ratio	1,306,597		11.91	%	877,644		8.00	%	932,497		8.50	%	Tier 1 risk-based capital ratio	1,422,077		12.10	%	940,248		8.00	%	999,014		8.50	%
Total risk-based capital ratio	Total risk-based capital ratio	1,653,694		15.07	%	1,097,055		10.00	%	1,151,908		10.50	%	Total risk-based capital ratio	1,897,167		16.14	%	1,175,610		10.00	%	1,234,076		10.50	%
Leverage capital ratios:	Leverage capital ratios:													Leverage capital ratios:
Tier 1 leverage ratio	Tier 1 leverage ratio	1,306,597		9.37	%	697,579		5.00	%	558,063		4.00	%	Tier 1 leverage ratio	1,422,077		9.15	%	777,289		5.00	%	621,831		4.00	%

Renasant Bank:	Renasant Bank:													Renasant Bank:
Risk-based capital ratios:	Risk-based capital ratios:													Risk-based capital ratios:
Common equity tier 1 capital ratio	Common equity tier 1 capital ratio	$	1,369,994	12.49	%	$	712,709	6.50	%	$	767,533	7.00	%	Common equity tier 1 capital ratio	$	1,580,904	13.46	%	$	763,713	6.50	%	$	822,460	7.00	%
Tier 1 risk-based capital ratio	Tier 1 risk-based capital ratio	1,369,994		12.49	%	877,181		8.00	%	932,004		8.50	%	Tier 1 risk-based capital ratio	1,580,904		13.46	%	939,954		8.00	%	998,702		8.50	%
Total risk-based capital ratio	Total risk-based capital ratio	1,504,985		13.73	%	1,096,476		10.00	%	1,151,299		10.50	%	Total risk-based capital ratio	1,697,163		14.44	%	1,174,943		10.00	%	1,233,690		10.50	%
Leverage capital ratios:	Leverage capital ratios:													Leverage capital ratios:
Tier 1 leverage ratio	Tier 1 leverage ratio	1,369,994		9.83	%	696,738		5.00	%	557,391		4.00	%	Tier 1 leverage ratio	1,580,904		10.18	%	776,700		5.00	%	621,360		4.00	%

The Company has elected to take advantage of transitional relief offered by the Federal Reserve and FDIC to delay for two years the estimated impact of CECL on regulatory capital, followed by a three-year transitional period to phase out the capital benefit provided by the two-year delay.

The three-year transitional period began on January1, 2022.

For more information regarding the capital adequacy guidelines applicable to the Company and Renasant Bank, please refer to Note 15, “Regulatory Matters,” in the Notes to the Consolidated Financial Statements of the Company in Item 1, Financial Statements.

Critical Accounting Estimates

We have identified certain accounting estimates which involve significant judgment and estimates which can have a material impact on our financial condition or results of operations. Our accounting policies are more fully described in Note 1,

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“Significant Accounting Policies,” in the Notes to Consolidated Financial Statements of the Company in Item 8, Financial Statements and Supplementary Data, in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission on February 25, 2022. Actual amounts and values as of the balance sheet dates may be materially different than the amounts and values reported due to the inherent uncertainty in the estimation process. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date.

The critical accounting estimates which we believe to be the most critical in preparing our consolidated financial statements relate to allowance for credit losses and acquisition accounting, which are described under “Critical Accounting Policies and Estimates” in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for the year ended December 31, 2021. Since December 31, 2021, there have been no material changes in these critical accounting estimates.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this document contains certain non-GAAP financial measures, namely, an adjusted efficiency ratio and the allowance for credit losses on loans to total loans, excluding PPP loans (the “adjusted allowance ratio”). The adjusted allowance ratio only excludes PPP loans; the adjusted efficiency ratio adjusts GAAP financial measures to exclude the amortization of intangible assets and certain items (such as, ~~when applicable,~~among others, merger and conversion related expenses, COVID-19 related expenses, ~~debt prepayment penalties,~~ restructuring ~~charges, provision~~benefit, and a recovery of a portion of the reserve for unfunded commitments, gains on sales of securities and asset valuation adjustments) with respect to which the Company is unable to accurately predict when these items will be incurred or, when incurred, the amount thereof. With respect to COVID-19 related expenses in particular, management added these expenses as a charge to exclude when calculating non-GAAP financial measures because the expenses included within this line item are readily quantifiable and possess the same characteristics with respect to management’s inability to accurately predict the timing or amount thereof as the other items excluded when calculating non-GAAP financial measures. Management uses the adjusted efficiency ratio when evaluating capital utilization and adequacy, while it uses the adjusted allowance ratio to determine the adequacy of our allowance with respect to loans not fully guaranteed by the U.S. Small Business Administration. In addition, the Company believes that non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because the amortization of intangible assets and items such as restructuring charges and COVID-19 related expenses can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution’s regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company’s results to information provided in other regulatory reports and the results of other companies. The reconciliations from GAAP to non-GAAP for these financial measures are below.

Adjusted Efficiency Ratio
Three months ended September 30, Nine months ended September 30,
2021 2020 2021 2020
Interest income (fully tax equivalent basis) $ 115,723 $ 123,677 $ 361,718 $ 381,195
Interest expense 10,721 15,792 34,247 57,536
Net interest income (fully tax equivalent basis) 105,002 107,885 327,471 323,659
Total noninterest income 50,755 70,928 179,402 172,668
Net gains on sales of securities 764 — 2,121 31
MSR valuation adjustment — 828 13,561 (13,694)
Adjusted noninterest income 49,991 70,100 163,720 186,331
Total noninterest expense 103,999 116,510 328,711 349,836
Intangible amortization 1,481 1,733 4,618 5,462
Debt prepayment penalty — 28 — 118
Restructuring charges — — 307 —
COVID-19 related expenses 323 570 1,478 9,730
Provision for unfunded commitments (200) 2,700 (200) 8,700
Adjusted noninterest expense 102,395 111,479 322,508 325,826
Efficiency Ratio (GAAP) 66.77 % 65.16 % 64.85 % 70.49 %
Adjusted Efficiency Ratio (non-GAAP) 66.06 % 62.63 % 65.66 % 63.89 %

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Allowance for Credit Losses on Loans to Total Loans, excluding PPP Loans
September 30, 2021 December 31, 2020
Total loans (GAAP) $ 10,016,824 $ 10,933,647
Less PPP loans 67,462 1,128,703
Adjusted total loans (non-GAAP) $ 9,949,362 $ 9,804,944
Allowance for Credit Losses on Loans $ 170,038 $ 176,144
ACL/Total loans (GAAP) 1.70 % 1.61 %
ACL/Total loans excluding PPP loans (non-GAAP) 1.71 % 1.80 %


Adjusted Efficiency Ratio
	Three months ended March 31,
		2022			2021
Interest income (fully tax equivalent basis)		$	111,945		$	123,378
Interest expense		10,562			12,114
Net interest income (fully tax equivalent basis)		101,383			111,264

Total noninterest income		37,458			81,037
Net gains on sales of securities		—			1,357
MSR valuation adjustment		—			13,561
Adjusted noninterest income		37,458			66,119

Total noninterest expense		94,105			115,935
Intangible amortization		1,366			1,598
Merger and conversion related expenses		687			—

Restructuring (benefit) charges		(455)			292
COVID-19 related expenses		—			785
Recovery of unfunded commitments		(550)			—
Adjusted noninterest expense		93,057			113,260

Efficiency Ratio (GAAP)		67.78		%	60.29		%
Adjusted Efficiency Ratio (non-GAAP)		67.02		%	63.85		%


Allowance for Credit Losses on Loans to Total Loans, excluding PPP Loans
	March 31, 2022			December 31, 2021
Total loans (GAAP)	$	10,313,459		$	10,020,914
Less PPP loans	8,382			58,391
Adjusted total loans (non-GAAP)	$	10,305,077		$	9,962,523

Allowance for Credit Losses on Loans	$	166,468		$	164,171
ACL/Total loans (GAAP)	1.61		%	1.64		%
ACL/Total loans excluding PPP loans (non-GAAP)	1.62		%	1.65		%

The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Readers of this Form 10-Q should note that, because there are no standard definitions for the calculations as well as the results, the Company’s calculations may not be comparable to a similarly-titled measure presented by other companies. Also, there may be limits in the usefulness of this measure to readers of this document. As a result, the Company encourages readers to consider its consolidated financial statements and footnotes thereto in their entirety and not to rely on any single financial measure.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our market risk since December 31, ~~2020.~~2021. For additional information regarding our market risk, see our Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021, filed with the Securities and Exchange Commission on February 25, 2022.

Item 4. CONTROLS AND PROCEDURES

Based on their evaluation as of the end of the period covered by this quarterly report on Form 10-Q, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures (as defined in Rules

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13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) are effective for ensuring that information the Company is required to disclose in reports that it files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to the Company’s management, including its Principal Executive and Principal Financial Officers, as appropriate to allow timely decisions regarding required disclosure. There ~~were~~was no ~~changes~~change in the Company’s internal control over financial reporting during the fiscal quarter covered by this quarterly report that ~~have~~has materially affected, or ~~are~~is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Part II. OTHER INFORMATION

Item 1A. RISK FACTORS

When evaluating the risk of an investment in the Company’s common stock, potential investors should carefully consider the risk factors appearing in Part I, Item 1A, Risk Factors, of the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. There have been no material changes from the risk factors set forth in our Annual Report on Form ~~10-K.~~10-K filed with the Securities and Exchange Commission on February 25, 2022.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Unregistered Sales of Equity Securities

None.

Issuer Purchases of Equity Securities

During the three month period ended ~~September 30, 2021,~~March 31, 2022, the Company repurchased shares of its common stock as indicated in the following table:

Total Number of Shares Purchased(1)
Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Share Repurchase Plans
Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under Share Repurchase Plans(2)
July 1, 2021 to July 31, 2021 342 $ 38.70 — $ 50,000
August 1, 2021 to August 31, 2021 334,503 35.69 331,510 38,177
September 1, 2021 to September 30, 2021 282,257 33.80 280,597 28,704
Total 617,102 $ 34.83 612,107


	Total Number of Shares Purchased(1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Share Repurchase Plans	Maximum Number of Shares or Approximate Dollar Value That May Yet Be Purchased Under Share Repurchase Plans(2)
January 1, 2022 to January 31, 2022	19,397	$	37.95	—	$	50,000
February 1, 2022 to February 28, 2022	—	—		—	50,000
March 1, 2022 to March 31, 2022	49,291	35.05		—	50,000
Total	68,688	$	35.87	—

(1)~~The Company announced a $50.0 million stock repurchase program on October 20, 2020 which expired as of October 20, 2021. Under~~For the ~~plan, 612,107 shares were repurchased in the third quarter of 2021.~~

~~Share~~three months ended March 31, 2022, all share amounts in this column ~~also include~~represent shares of Renasant Corporation stock withheld to satisfy the federal and state tax liabilities related to the vesting of time-based and performance-based restricted stock ~~awards~~awards.

The Company announced a $50.0 million stock repurchase program in October 2021 under which the Company is authorized to repurchase outstanding shares of its common stock either in open market purchases or privately-negotiated transactions. This plan will remain in effect for one year or, if earlier, the repurchase of the entire amount of common stock authorized to be repurchased. No shares were repurchased during the ~~period. A total~~first quarter of ~~342, 2,993, and 1,660 shares were withheld for such purpose in July, August and September, respectively.~~2022 under this plan.

(2)Dollars in thousands

Please refer to the information discussing restrictions on the Company’s ability to pay dividends under the heading “Liquidity and Capital Resources” in Part I, Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of this report, which is incorporated by reference herein.

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Item 6. EXHIBITS


Exhibit Number						Description

(3)(i)						Articles of Incorporation of Renasant Corporation, as amended (1)

(3)(ii)						Amended and Restated Bylaws of Renasant Corporation (2)

(3)(iii)						Articles of Amendment to the Amended and Restated Bylaws of Renasant Corporation (3)

(3)(iv)						A rticles of Amendment to the Amended and Restated Bylaws of R enasant Co rporation (4)

(31)(i)						Certification of the Principal Executive Officer, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

(31)(ii)						Certification of the Principal Financial Officer, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

(32)(i)						Certification of the Principal Executive Officer, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

(32)(ii)						Certification of the Principal Financial Officer, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

(101)						The following materials from Renasant Corporation’s Quarterly Report on Form 10-Q for the quarter ended ~~September 30, 2021~~March 31, 2022 were formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Shareholders’ Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements (Unaudited).

(104)						The cover page of Renasant Corporation’s Quarterly Report on Form 10-Q for the quarter ended ~~September 30, 2021,~~March 31, 2022, formatted in Inline XBRL (included in Exhibit 101).

(1)Filed as exhibit 3.1 to the Form 10-Q of the Company filed with the Securities and Exchange Commission (the “Commission”) on May 10, 2016 and incorporated herein by reference.

(2)Filed as exhibit 3(ii) to the Form 8-K of the Company filed with the Commission on July 20, 2018 and incorporated herein by reference.

(3)Filed as exhibit 3(ii) to the Form 8-K of the Company filed with the Commission on April 30, 2021 and incorporated herein by reference.

(4)Filed as exhibit 3(ii) to the Form 8-K of the Company filed with the Commission on January 28, 2022 and incorporated herein by reference.

The Company does not have any long-term debt instruments under which securities are authorized exceeding ten percent of the total assets of the Company and its subsidiaries on a consolidated basis. The Company will furnish to the Securities and Exchange Commission, upon its request, a copy of all long-term debt instruments.

8578

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		RENASANT CORPORATION
		(Registrant)

Date:	~~November 5, 2021~~May 6, 2022	/s/ C. Mitchell Waycaster
		C. Mitchell Waycaster
		President and
		Chief Executive Officer
		(Principal Executive Officer)

Date:	~~November 5, 2021~~May 6, 2022	/s/ James C. Mabry IV
		James C. Mabry IV
		Executive Vice President and
		Chief Financial Officer
		(Principal Financial Officer)

8679


		Page
PART I	Financial Information
Item 1.	Financial Statements (Unaudited)
	Consolidated Balance Sheets	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Changes in Shareholders’ Equity	4
	Consolidated Statements of Cash Flows	65
	Notes to Consolidated Financial Statements	76

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	5349

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	8375

Item 4.	Controls and Procedures	8375

PART II	Other Information


Item 1A.	Risk Factors	8477

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	8477

Item 6.	Exhibits	8578

SIGNATURES		8679


	Shares	Weighted Average Exercise Price
Options outstanding at beginning of period	10,500	$	14.96
Granted	—	—
Exercised	(5,000)	14.96
Forfeited	—	—
Options outstanding at end of period	5,500	$	14.96


			Fair Value
As of September 30, 2021	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	1,476,141	$	1,476,141	$	—	$	—	$	1,476,141

Securities available for sale	2,544,643		—		2,544,643		—		2,544,643
Loans held for sale	452,869		—		452,869		—		452,869
Loans, net	9,846,786		—		—		9,726,732		9,726,732
Mortgage servicing rights	86,387		—		—		90,738		90,738
Derivative instruments	28,134		—		28,134		—		28,134
Financial liabilities
Deposits	$	13,254,829	$	11,787,346	$	1,467,955	$	—	$	13,255,301
Short-term borrowings	11,253		11,253		—		—		11,253

Federal Home Loan Bank advances	150,425		—		155,832		—		155,832
Junior subordinated debentures	111,228		—		105,546		—		105,546
Subordinated notes	207,210		—		221,700		—		221,700
Derivative instruments	14,543		—		14,543		—		14,543


	September 30, 2021		December 31, 2020
Unrealized gains on securities	$	8,854	$	42,246
Non-credit related portion of previously recorded other-than-temporary impairment on securities	—		(11,319)
Unrealized gains (losses) on derivative instruments	6,913		(638)
Unrecognized losses on defined benefit pension and post-retirement benefit plans obligations	(5,073)		(5,221)
Total accumulated other comprehensive income	$	10,694	$	25,068