Company: RNST
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000715072-25-000180
Chunk: 183

Company: RENASANT CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 183
---
 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, 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:

March 31, 2025December 31, 2024March 31, 2024Balance% of TotalBalance% of TotalBalance% of TotalCommercial, financial, agricultural$38,441 14.47 %$38,527 14.64 %$45,921 14.95 %Lease financing3,644 0.65 3,368 0.70 2,554 0.86 Real estate – construction16,561 8.36 15,126 8.49 17,317 9.95 Real estate – 1-4 family mortgage50,711 27.44 47,761 27.07 47,566 27.43 Real estate – commercial mortgage88,080 48.41 90,204 48.40 78,725 46.03 Installment loans to individuals6,494 0.67 6,770 0.70 8,969 0.78 Total$203,931 100.00 %$201,756 100.00 %$201,052 100.00 %

The provision for credit losses on loans charged to operating expense is an