Company: RNST
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000715072-25-000211
Chunk: 176

Company: RENASANT CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 176
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033)284 (4,552)2,351 Total$4,584 $3,103 $6,402 $9,169 Derivatives designated as cash flow hedgesCash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company uses both interest rate swap contracts and interest rate collars in an effort to manage future interest rate exposure on borrowings and loans, respectively. The swap hedging strategy converts the variable interest rate on the forecasted borrowings to a fixed interest rate. The collar hedging strategy limits the benefit to interest income when rates exceed the cap but protects interest income from interest rate fluctuations below the floor strike rate.The following table provides a summary of the Company’s derivatives designated as cash flow hedges as of the dates presented: Balance SheetJune 30, 2025December 31, 2024 LocationNotional AmountFair ValueNotional AmountFair ValueDerivative assets:  Interest rate swapsOther Assets$130,000 $18,022 $130,000 $22,780   Interest rate collarsOther Assets450,000 548 — — Total$580,000 $18,570 $130,000 $22,780 Derivative liabilities:  Interest rate collarsOther Liabilities$— $— $450,000 $598 Totals$— $— $450,000 $598 Changes in fair value of 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 

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

earnings. The ineffective portions of the changes in fair value of the hedging instruments are immediately recognized in earnings. The assessment of the effectiveness of the hedging relationship is evaluated under the hypothetical derivative method. There were no ineffective portions for the six months ended June 30, 2025 or 2024. The impact on other comprehensive income for the six months ended June 30, 2025 and 2024 is discussed in Note 13, “Other Comprehensive Income.”Derivatives designated as fair value hedgesFair value hedges protect against changes in the fair value of an asset, liability, or firm commitment.  The Company enters into interest