Company: RNST
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000715072-25-000180
Chunk: 218

Company: RENASANT CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 218
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34 Brokered deposits— 3.04 — 5.39 Time deposits16.40 15.84 3.93 4.06 Short term borrowings0.72 0.79 0.88 1.20 Subordinated notes2.21 2.16 5.15 5.83 Other borrowed funds0.76 0.76 7.88 8.28 Total deposits and borrowed funds100.00 %100.00 %2.31 %2.46 %

Interest expense on deposits was $79,386 and $82,613 for the three months ended March 31, 2025 and 2024, respectively, and the cost of total deposits was 2.22% and 2.35% for the same respective periods. The decrease in both deposit expense and cost is attributable to the Federal Reserve’s rate cuts during the second half of 2024. As liquidity risks abated, the Company also repaid advances and allowed brokered deposits to mature, which lowered our deposit costs. The Company has continued its efforts to maintain non-interest bearing deposits. Low cost deposits continue to be the preferred choice of funding; however, the Company may rely on brokered deposits or wholesale borrowings when advantageous or otherwise deemed advisable due to market conditions.

Interest expense on total borrowings was $6,747 and $7,276 for the three months ended March 31, 2025 and 2024, respectively. The decrease in interest expense on borrowings is a result of the Federal Reserve’s rate cuts during the second half of 2024.

A more detailed discussion of the cost of our funding sources is set forth below under the heading “Liquidity and Capital Resources” in this Item.

Noninterest Income

49

Noninterest Income to Average AssetsThree Months Ended March 31,2025 20240.82% 0.97%

Total noninterest income includes fees generated from deposit services and other fees and commissions, income from our wealth management and mortgage banking operations, realized gains and losses on the sale of securities and all other noninterest income. Our focus is to develop and enhance our products that generate noninterest income in order to diversify revenue sources. Noninterest income was $36,468 for the first quarter of 2025 as compared to $41,381 for the same period in 2024. The decrease over the three month period is primarily due to the sale of our