Company: RNST
Filing Date: 2025-02-26
Form Type: PRE 14A
Source: 0000715072-25-000057
Chunk: 7

Company: RENASANT CORP
Filing Date: 2025-02-26
Form: PRE 14A
Chunk 7
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22.0 million in 2024 as compared to 2023, primarily due to merger and conversion expenses and unusual claims experience in our employee benefit plans. The gain recognized from the insurance agency sale offset these elevated noninterest expenses, such that our efficiency ratio for 2024 was 63.6%, an improvement from 68.3% for 2023. Our adjusted efficiency ratio (non-GAAP), which excludes nonrecurring items such as the gain on the sale of our insurance agency business and merger and conversion expenses, rose from 63.5% for 2023 to 66.3% for 2024 primarily due to the aforementioned decline in net interest income and increase in operating expense. (The efficiency ratio divides noninterest expense by the sum of net interest income on a fully tax equivalent basis and noninterest income. It measures the percentage of one dollar that we must expend to generate a dollar of revenue.)

• Asset quality metrics remained stable, underscoring our emphasis on prudent underwriting and ongoing credit monitoring. Net loan charge-offs in 2024 were 0.05% of average loans, down one basis point from 2023. Non-performing loans as a percentage of total loans was 0.88% in 2024, up only 32 basis points from 2023, while our coverage ratio (the allowance for credit losses as a percentage of total nonperforming loans) remained robust at 178% at December 31, 2024, as compared to 286% at December 31, 2023.

Compensation. For 2024, our executive pay practices continued to reflect our view that compensation should correlate with our performance, with payouts limited to ensure that compensation remains at appropriate levels. Expectations with respect to our performance in any given year are impacted by internal and external factors. Internal factors relate to initiatives that our executives are expected to implement during the year to, among other things, increase our revenue, control our expenses, maintain our liquidity at adequate levels, improve our operational efficiency and grow our capital. Some initiatives may have a negative short-term impact on earnings or other performance metrics but position Renasant for longer-term growth or profitability. Externally, projections with respect to the general economic climate for the year, especially with respect to changes in interest rates, are also incorporated into expectations about our performance. We use earnings per share and total shareholder return to evaluate the correlation between shareholder value and compensation, for the reasons explained in the table below.

| Correlation Measure