Company: RNST
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000715072-25-000234
Chunk: 176

Company: RENASANT CORP
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 176
---
 the period of estimated net servicing income. These servicing rights are carried at the lower of amortized cost or fair value. Fair value is determined using an income approach with various assumptions, including expected cash flows, prepayment speeds, market discount rates, servicing costs, and other factors, and is subject to significant fluctuation as a result of actual prepayment speeds, default rates and losses differing from estimates thereof. For example, an increase in mortgage interest rates or a decrease in actual prepayment speeds may cause positive adjustments to the valuation of the Company’s MSRs.MSRs are evaluated for impairment (or reversals of prior impairments) quarterly based upon the fair value of the rights as compared to the carrying amount. Impairment is recognized through a valuation allowance in the amount that unamortized cost exceeds fair value. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the valuation allowance may be recorded as an increase to income. Changes in valuation allowances related to servicing rights are reported in “Mortgage banking income” on the Consolidated Statements of Income. There was no valuation adjustment on MSRs during the nine months ended September 30, 2025 or 2024.Changes in the Company’s MSRs were as follows:20252024Balance at January 1$72,991 $91,688 Sale of MSRs(7,886)(19,539)Capitalization7,092 6,860 Amortization(6,731)(7,019)Balance at September 30$65,466 $71,990 Data and key economic assumptions related to the Company’s MSRs are as follows as of the dates presented: 

37

Table of ContentsRenasant Corporation and SubsidiariesNotes to Consolidated Financial Statements (Unaudited)

September 30, 2025December 31, 2024Unpaid principal balance$5,632,116 $5,874,481 Weighted-average prepayment speed (CPR)10.38 %8.87 %Estimated impact of a 10% increase$(2,903)$(3,066)Estimated impact of a 20% increase(5,594)(5,941)Discount rate9.96 %11.09 %Estimated impact of a 10% increase$(3,292)$(3,924)Estimated impact of a 20% increase(6,337)(7,557)Weighted-average coupon