Renascent Corp Files Q2 2024 10-Q

TL;DR

RENASANT CORP 10-Q FILED: Q2 2024 RESULTS ARE IN.

AI Summary

Renascent Corp filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including its assets, liabilities, and equity. Specific financial figures and operational details for the second quarter of 2024 are presented.

Why It Matters

This filing provides investors and analysts with a detailed look into Renascent Corp's financial health and operational results for the second quarter of 2024, crucial for understanding the company's current performance and future outlook.

Risk Assessment

Risk Level: medium — As a financial institution, Renascent Corp is subject to various market and regulatory risks inherent in the banking sector.

Key Numbers

• 2024 Q2 — Quarterly Period (Reporting period for the 10-Q filing.)
• 12/31 — Fiscal Year End (Indicates the end of the company's fiscal year.)

Key Players & Entities

• RENASANT CORP (company) — Filer
• 20240630 (date) — Period of Report
• 20240807 (date) — Filing Date
• 6022 (industry_code) — Standard Industrial Classification
• MS (state) — State of Incorporation

FAQ

Key Financial Figures

• $5.00 — ange on which registered Common stock, $5.00 par value per share RNST The New York S

Filing Documents

• rnst-20240630.htm (10-Q) — 5350KB
• descriptionofcommonstock-e.htm (EX-4.1) — 28KB
• rnst6302024ex311.htm (EX-31.1) — 9KB
• rnst6302024ex312.htm (EX-31.2) — 9KB
• rnst6302024ex321.htm (EX-32.1) — 5KB
• rnst6302024ex322.htm (EX-32.2) — 6KB
• 0000715072-24-000155.txt ( ) — 25639KB
• rnst-20240630.xsd (EX-101.SCH) — 76KB
• rnst-20240630_cal.xml (EX-101.CAL) — 160KB
• rnst-20240630_def.xml (EX-101.DEF) — 468KB
• rnst-20240630_lab.xml (EX-101.LAB) — 1005KB
• rnst-20240630_pre.xml (EX-101.PRE) — 764KB
• rnst-20240630_htm.xml (XML) — 7377KB

Financial Information

PART I Financial Information

Financial Statements (Unaudited)

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 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 48

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 74

Controls and Procedures

Item 4. Controls and Procedures 74

Other Information

PART II Other Information

Risk Factors

Item 1A. Risk Factors 75

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 77

Other Information

Item 5. Other Information 79

Exhibits

Item 6. Exhibits 79

SIGNATURES

SIGNATURES 81 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS Renasant Corporation and Subsidiaries Consolidated Balance Sheets (In Thousands, Except Share Data) (Unaudited) June 30, 2024 December 31, 2023 Assets Cash and due from banks $ 224,302 $ 206,680 Interest-bearing balances with banks 627,604 594,671 Cash and cash equivalents 851,906 801,351 Securities held to maturity (net of allowance for credit losses of $ 32 at each of June 30, 2024 and December 31, 2023) (fair value of $ 1,052,705 and $ 1,121,830 , respectively) 1,174,663 1,221,464 Securities available for sale, at fair value 749,685 923,279 Loans held for sale, at fair value 266,406 179,756 Loans held for investment, net of unearned income 12,604,755 12,351,230 Allowance for credit losses on loans ( 199,871 ) ( 198,578 ) Loans, net 12,404,884 12,152,652 Premises and equipment, net 280,966 283,195 Other real estate owned, net 7,366 9,622 Goodwill 991,665 991,665 Other intangible assets, net 16,397 18,795 Bank-owned life insurance 387,791 382,584 Mortgage servicing rights 72,092 91,688 Other assets 306,570 304,484 Total assets $ 17,510,391 $ 17,360,535 Liabilities and shareholders' equity Liabilities Deposits Noninterest-bearing $ 3,539,453 $ 3,583,675 Interest-bearing 10,715,760 10,493,110 Total deposits 14,255,213 14,076,785 Short-term borrowings 232,741 307,577 Long-term debt 428,677 429,400 Other liabilities 239,059 249,390 Total liabilities 15,155,690 15,063,152 Shareholders' equity Preferred stock, $ 0.01 par value – 5,000,000 shares authorized; no shares issued and outstanding — — Common stock, $ 5.00 par value – 150,000,000 shares authorized; 59,296,725 shares issued; 56,367,924 and 56,142,207 shares outstanding, respectively 296,483 296,483 Treasury stock, at cost – 2,928,801 and 3,154,518 shares, respectively ( 97,534 ) ( 105,249 ) Additional paid-in capital 1,304,782 1,308,281 Retained earnings 1,005,086 952,124 Accumulated other comprehensive loss, net of taxes ( 154,116 ) ( 15

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 1 – Summary of Significant Accounting Policies (In Thousands) Nature of Operations : Renasant Corporation (referred to herein as the "Company") owns and operates Renasant Bank ("Renasant Bank" or the "Bank"), Renasant Insurance, Inc., Park Place Capital Corporation and Continental Republic Capital, LLC (doing business as "Republic Business Credit"). Through its subsidiaries, the Company offers a diversified range of financial, wealth management, fiduciary and insurance services to its retail and commercial customers from offices located throughout the Southeast and offers factoring and asset-based lending on a nationwide basis. See Note 15, "Subsequent Events" for a discussion of the Bank's sale of substantially all of the assets of Renasant Insurance, Inc. effective July 1, 2024. Basis of Presentation : The accompanying unaudited consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information regarding the Company's significant accounting policies, refer to the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the "SEC") on February 23, 2024. Use of Estimates : The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 2 – Securities (In Thousands, Except Number of Securities) The amortized cost and fair value of securities available for sale were as follows as of the dates presented in the tables below. There was no allowance for credit losses allocated to any of the Company's available for sale securities as of June 30, 2024 or December 31, 2023. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2024 Obligations of states and political subdivisions $ 20,355 $ 68 $ ( 2,273 ) $ 18,150 Residential mortgage backed securities: Government agency mortgage backed securities 193,895 102 ( 26,380 ) 167,617 Government agency collateralized mortgage obligations 420,707 — ( 89,746 ) 330,961 Commercial mortgage backed securities: Government agency mortgage backed securities 6,016 — ( 681 ) 5,335 Government agency collateralized mortgage obligations 139,885 4 ( 22,782 ) 117,107 Other debt securities 113,741 565 ( 3,791 ) 110,515 $ 894,599 $ 739 $ ( 145,653 ) $ 749,685 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2023 Obligations of states and political subdivisions $ 36,374 $ 119 $ ( 1,883 ) $ 34,610 Residential mortgage backed securities: Government agency mortgage backed securities 301,400 172 ( 24,968 ) 276,604 Government agency collateralized mortgage obligations 485,164 — ( 85,883 ) 399,281 Commercial mortgage backed securities: Government agency mortgage backed securities 6,029 — ( 637 ) 5,392 Government agency collateralized mortgage obligations 161,299 24 ( 21,965 ) 139,358 Other debt securities 72,383 109 ( 4,458 ) 68,034 $ 1,062,649 $ 424 $ ( 139,794 ) $ 923,279 7 Table of Contents Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) The amortized cost and fair value of securities held to maturity were as follows as of the dates presented: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2024 Obligations of states and political subdivisions $ 286,354 $ 21 $ ( 41,326 ) $ 245,049 Residential mortgage backed securities Government agency mortgage backed securities 399,822 — ( 27,382 ) 372,440 Government agency collateralized mortgage obligations 371,232 — ( 38,017 ) 333,215 Commercial mortgage backed securities: Government agency mortgage backed securities 16,972 — ( 3,058 ) 13,914 Government agency collateralized mortgage obligations 44,191 — ( 7,521 ) 36,670 Other debt securities 56,124 — ( 4,707 ) 51,417 $ 1,174,695 $ 21 $ ( 122,011 ) $ 1,052,705 Allowance for credit losses - held to maturity securities ( 32 ) Held to maturity securities, net of allowance for credit losses $ 1,174,663 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2023 Obligations of states and political subdivisions $ 288,154 $ 74 $ ( 33,688 ) $ 254,540 Residential mortgage backed securities Government agency mortgage backed securities 426,264 — ( 20,314 ) 405,950 Government agency collateralized mortgage obligations 387,208 — ( 31,670 ) 355,538 Commercial mortgage backed securities: Government agency mortgage backed securities 16,983 — ( 2,972 ) 14,011 Government agency collateralized mortgage obligations 44,514 — ( 6,977 ) 37,537 Other debt securities 58,373 — ( 4,119 ) 54,254 $ 1,221,496 $ 74 $ ( 99,740 ) $ 1,121,830 Allowance for credit losses - held to maturity securities ( 32 ) Held to maturity securities, net of allowance for credit losses $ 1,221,464 Securities sold during the six months ended June 30, 2024 and the three and six months ended June 30, 2023 are presented in the tables below. With respect to the securities sold during the first six months ended June 3

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Carrying Value Immediately Prior to Sale Net Proceeds Impairment Recognized in December 2023 Six months ended June 30, 2024 Obligations of states and political subdivisions $ 12,301 $ 11,360 $ ( 941 ) Residential mortgage backed securities: Government agency mortgage backed securities 107,389 95,922 ( 11,467 ) Government agency collateralized mortgage obligations 48,300 43,990 ( 4,310 ) Commercial mortgage backed securities: Government agency collateralized mortgage obligations 28,547 25,913 ( 2,634 ) $ 196,537 $ 177,185 $ ( 19,352 ) Carrying Value Net Proceeds Loss Three months ended June 30, 2023 Obligations of other U.S. Government agencies and corporations $ 170,000 $ 164,915 $ ( 5,085 ) Obligations of states and political subdivisions 104,950 99,439 ( 5,511 ) Residential mortgage backed securities: Government agency mortgage backed securities 137,196 130,602 ( 6,594 ) Government agency collateralized mortgage obligations 54,028 51,101 ( 2,927 ) Commercial mortgage backed securities: Government agency mortgage backed securities 5,048 4,825 ( 223 ) Government agency collateralized mortgage obligations 40,197 38,099 ( 2,098 ) $ 511,419 $ 488,981 $ ( 22,438 ) Six months ended June 30, 2023 Obligations of other U.S. Government agencies and corporations $ 170,000 $ 164,915 $ ( 5,085 ) Obligations of states and political subdivisions 104,950 99,439 ( 5,511 ) Residential mortgage backed securities: Government agency mortgage backed securities 137,196 130,602 ( 6,594 ) Government agency collateralized mortgage obligations 54,028 51,101 ( 2,927 ) Commercial mortgage backed securities: Government agency mortgage backed securities 5,048 4,825 ( 223 ) Government agency collateralized mortgage obligations 40,197 38,099 ( 2,098 ) $ 511,419 $ 488,981 $ ( 22,438 ) At June 30, 2024 and December 31, 2023, securities with a carrying value of $ 834,625 and $ 880,715 , respectively, were p

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Held to Maturity Available for Sale Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 1,322 $ 1,292 $ 1,001 $ 996 Due after one year through five years 6,319 5,853 36,378 36,558 Due after five years through ten years 126,189 110,897 38,250 34,491 Due after ten years 208,648 178,424 50,766 49,727 Residential mortgage backed securities: Government agency mortgage backed securities 399,822 372,440 193,895 167,617 Government agency collateralized mortgage obligations 371,232 333,215 420,707 330,961 Commercial mortgage backed securities: Government agency mortgage backed securities 16,972 13,914 6,016 5,335 Government agency collateralized mortgage obligations 44,191 36,670 139,885 117,107 Other debt securities — — 7,701 6,893 $ 1,174,695 $ 1,052,705 $ 894,599 $ 749,685 10 Table of Contents Renasant Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) The following tables present the age of gross unrealized losses and fair value by investment category for which an allowance for credit losses has not been recorded as of the dates presented: Less than 12 Months 12 Months or More Total # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Available for Sale: June 30, 2024 Obligations of states and political subdivisions — $ — $ — 7 $ 12,928 $ ( 2,273 ) 7 $ 12,928 $ ( 2,273 ) Residential mortgage backed securities: Government agency mortgage backed securities 5 9,495 ( 109 ) 36 154,193 ( 26,271 ) 41 163,688 ( 26,380 ) Government agency collateralized mortgage obligations — — — 37 330,955 ( 89,746 ) 37 330,955 ( 89,746 ) Commercial mortgage backed securities: Government agency mortgage backed securities — — — 2 5,335 ( 681 ) 2 5,335 ( 681 ) Government agency collateralized mortgage obligations 2 7,630 ( 131 ) 25 106,557 ( 22,651 ) 27 114,187 ( 22,782 ) Other debt securities — — — 20 37,415 ( 3,791 ) 20 37,415 ( 3,791 ) Total 7 $ 17,125 $ ( 240 ) 127 $ 647,383 $ ( 145,413 ) 134 $ 664,508 $ ( 145,653 ) December 31, 2023 Obligations of states and political subdivisions 3 $ 2,914 $ ( 2 ) 9 $ 15,198 $ ( 1,881 ) 12 $ 18,112 $ ( 1,883 ) Residential mortgage backed securities: Government agency mortgage backed securities 1 806 ( 25 ) 35 166,963 ( 24,943 ) 36 167,769 ( 24,968 ) Government agency collateralized mortgage obligations — — — 37 354,574 ( 85,883 ) 37 354,574 ( 85,883 ) Commercial mortgage backed securities: Government agency mortgage backed securities — — — 2 5,392 ( 637 ) 2 5,392 ( 637 ) Government agency collateralized mortgage obligations — — — 25 108,575 ( 21,965 ) 25 108,575 ( 21,965 ) Other debt securities 2 3,099 ( 195 ) 19 35,072 ( 4,263 ) 21 38,171 ( 4,458 ) Total 6 $ 6,819 $ ( 222 ) 127 $ 685,774 $ ( 139,572 ) 133 $ 692,593 $ ( 139,794 ) 11 Table of Contents Renasant Corporation

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