Company: RNST
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000715072-25-000234
Chunk: 278

Company: RENASANT CORP
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 2
Chunk 278
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 through the operation or sale of the collateral), the expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of collateral is initially based on external appraisals. Generally, collateral values for loans for which measurement of expected losses is dependent on the fair value of such collateral are updated every twelve months, either from external third parties or in-house certified appraisers. Third-party appraisals are 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 collateral dependent loans 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.

71

In addition to its quarterly analysis of the allowance for credit losses, management and the Board of Directors review loan ratios on a regular basis. 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:

September 30, 2025December 31, 2024September 30, 2024Balance% of TotalBalance% of TotalBalance% of TotalCommercial, financial, agricultural$60,526 20.34 %$38,527 14.64 %$43,053 14.29 %Lease financing1,480 0.50 3,368 0.70 2,384 0.78 Real estate – construction23,953 8.05 15,126 8.49 16,656 9.50 Real estate – 1-4 family mortgage66,826 22.46 47,761 27.07 47,219 27.24 Real estate – commercial mortgage139,342 46.81 90,204