Company: RNST
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000715072-25-000180
Chunk: 89

Company: RENASANT CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 89
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December 31, 2024March 31,2024Residential real estate$3,160 $2,966 $1,244 Commercial real estate5,468 5,681 7,872 Residential land development19 19 19 Commercial land development7 7 7 Total other real estate owned$8,654 $8,673 $9,142 

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

20252024Balance at January 1$8,673 $9,622 Transfers of loans1,296 195 Impairments(564)(28)Dispositions(744)(119)Other(7)(528)Balance at September 30$8,654 $9,142 

Other real estate owned with a cost basis of $744 was sold during the three months ended March 31, 2025, resulting in a net gain of $2, while other real estate owned with a cost basis of $119 was sold during the three months ended March 31, 2024, resulting in a net gain of $13.

Interest Rate Risk

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, investing and deposit-taking activities. Management believes a significant impact on the Company’s financial results stems from 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. Changes in rates may also limit our liquidity, making it more costly for the Company to generate funds to make loans and to satisfy customers wishing to withdraw deposits.

Because of the impact of interest rate fluctuations on our profitability and liquidity, we actively monitor and manage our interest rate risk exposure. We have an Asset/Liability Committee (“ALCO”), which is comprised of various members of senior management and is authorized by the Board of Directors to monitor interest rate sensitivity and liquidity risk, over the short-, medium-, and long-term, and to make decisions relating to these processes. The ALCO’s goal is to structure our asset/liability composition to maximize net interest income while managing interest rate risk and preserving adequate liquidity