Company: RNST
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000715072-25-000234
Chunk: 180

Company: RENASANT CORP
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 180
---
 (1,167)(2,129)1,184 Total$10,178 $2,530 $16,580 $11,699 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 SheetSeptember 30, 2025December 31, 2024 LocationNotional AmountFair ValueNotional AmountFair ValueDerivative assets:  Interest rate swapsOther Assets$130,000 $17,043 $130,000 $22,780   Interest rate collarsOther Assets450,000 206 — — Total$580,000 $17,249 $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 

41

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

earnings.  The assessment of the effectiveness of the hedging relationship is evaluated under the hypothetical derivative method.  The impact on other comprehensive income for the nine months ended September 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.  Gains and losses on the derivative instrument and the offsetting gains and losses on the hedged item are recognized in current earnings. The Company enters into interest rate swap agreements to manage interest rate exposure on certain of the Company