RENASANT CORPRNST
RENASANT CORP Fair Value Disclosure
Fair Value Measurements
(In Thousands)
Recurring Fair Value Measurements
The Company carries certain assets and liabilities at fair value on a recurring basis. The Company’s recurring fair value measurements are based on the requirement to carry such assets and liabilities at fair value or the Company’s election to carry certain eligible assets and liabilities at fair value. Assets and liabilities that are required to be carried at fair value include securities available for sale and derivative instruments. The Company has elected to carry mortgage loans held for sale at fair value on a recurring basis as permitted under the guidance in ASC 825.
The following methods and assumptions are used by the Company to estimate the fair values of the Company’s financial assets and liabilities that are measured on a recurring basis:
Securities available for sale: Securities available for sale consist of debt securities, such as obligations of U.S. Government agencies and corporations and mortgage-backed securities. Where quoted market prices in active markets are available, securities are classified within Level 1 of the fair value hierarchy. If quoted prices from active markets are not available, fair values are based on quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active, or model-based valuation techniques where all significant assumptions are observable in the market. Such instruments are classified within Level 2 of the fair value hierarchy. All Level 2 securities, including state and political subdivisions, mortgage-backed securities and other debt securities are valued using model-based valuation techniques where all significant assumptions are observable. When assumptions used in model-based valuation techniques are not observable in the market, the assumptions used by management reflect estimates of assumptions used by
other market participants in determining fair value. When there is limited transparency around the inputs to the valuation, the instruments are classified within Level 3 of the fair value hierarchy.
Derivative instruments: Most of the Company’s derivative contracts are actively traded in over-the-counter markets and are valued using discounted cash flow models which incorporate observable market based inputs including current market interest rates, credit spreads, and other factors. Such instruments are categorized within Level 2 of the fair value hierarchy and include interest rate swaps and other interest rate contracts including interest rate caps and/or floors. The Company’s interest rate lock commitments are valued using current market prices for mortgage-backed securities with similar characteristics, adjusted for certain factors including servicing and risk. The value of the Company’s forward commitments is based on current prices for securities backed by similar types of loans. Because these assumptions are observable in active markets, the Company’s interest rate lock commitments and forward commitments are categorized within Level 2 of the fair value hierarchy.
Mortgage loans held for sale in loans held for sale: The Company has elected to carry mortgage loans held for sale at fair value on a recurring basis under the fair value option. Mortgage loans held for sale are primarily agency loans which trade in active secondary markets. The fair value of these instruments is derived from current market pricing for similar loans, adjusted for differences in loan characteristics, including servicing and risk. Because the valuation is based on external pricing of similar instruments, mortgage loans held for sale are classified within Level 2 of the fair value hierarchy.
The following tables present assets and liabilities that are measured at fair value on a recurring basis as of the dates presented:
| Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||
| Securities available for sale | $ | — | $ | 2,560,818 | $ | — | $ | 2,560,818 | |||||||||||||||
| Derivative instruments | — | 47,098 | — | 47,098 | |||||||||||||||||||
| Mortgage loans held for sale in loans held for sale | — | 265,959 | — | 265,959 | |||||||||||||||||||
| Total financial assets | $ | — | $ | 2,873,875 | $ | — | $ | 2,873,875 | |||||||||||||||
| Financial liabilities: | |||||||||||||||||||||||
| Derivative instruments | $ | — | $ | 41,484 | $ | — | $ | 41,484 | |||||||||||||||
| Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||
| Securities available for sale | $ | — | $ | 831,013 | $ | — | $ | 831,013 | |||||||||||||||
| Derivative instruments | — | 38,954 | — | 38,954 | |||||||||||||||||||
| Mortgage loans held for sale in loans held for sale | — | 246,171 | — | 246,171 | |||||||||||||||||||
| Total financial assets | $ | — | $ | 1,116,138 | $ | — | $ | 1,116,138 | |||||||||||||||
| Financial liabilities: | |||||||||||||||||||||||
| Derivative instruments | $ | — | $ | 32,268 | $ | — | $ | 32,268 | |||||||||||||||
The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the Company’s ability to observe inputs to the valuation may cause reclassification of certain assets or liabilities within the fair value hierarchy. There were no such transfers between levels of the fair value hierarchy during the year ended December 31, 2025.
For 2025 and 2024, there were no gains or losses included in earnings that were attributable to the change in unrealized gains or losses related to assets or liabilities held at the end of each respective period that were measured on a recurring basis using significant unobservable inputs.
Nonrecurring Fair Value Measurements
Certain assets may be recorded at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically are a result of the application of the lower of cost or market accounting or a write-down occurring during the period. The following tables provide as of the dates presented the fair value measurement for assets measured at fair value on a nonrecurring basis that
were still held on the Consolidated Balance Sheets at period end and the level within the fair value hierarchy each is classified:
| Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Collateral dependent loans | $ | — | $ | — | $ | 87,680 | $ | 87,680 | |||||||||||||||
| OREO | — | — | 3,538 | 3,538 | |||||||||||||||||||
| Total | $ | — | $ | — | $ | 91,218 | $ | 91,218 | |||||||||||||||
| Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Collateral dependent loans | $ | — | $ | — | $ | 38,374 | $ | 38,374 | |||||||||||||||
| OREO | — | — | 3,666 | 3,666 | |||||||||||||||||||
| Total | $ | — | $ | — | $ | 42,040 | $ | 42,040 | |||||||||||||||
The following methods and assumptions are used by the Company to estimate the fair values of the Company’s assets measured on a nonrecurring basis:
Collateral dependent loans: Loans that do not share similar risk characteristics such that they can be evaluated on a collective (pool) basis are individually evaluated for credit losses each quarter taking into account the fair value of the collateral less estimated selling costs. Collateral may be real estate and/or business assets such as equipment, inventory and accounts receivable. The fair value of real estate is determined based on appraisals by qualified licensed appraisers. The fair value of the business assets is generally based on amounts reported on the business’s financial statements. Appraised and reported values may be adjusted based on changes in market conditions from the time of valuation and management’s knowledge of the client and the client’s business. Since not all valuation inputs are observable, these nonrecurring fair value determinations are classified as Level 3.
Other real estate owned: OREO is comprised of commercial and residential real estate obtained in partial or total satisfaction of loan obligations. OREO acquired in settlement of indebtedness is recorded at the fair value of the real estate less estimated costs to sell. Subsequently, it may be necessary to record nonrecurring fair value adjustments for declines in fair value. Fair value, when recorded, is determined based on appraisals by qualified licensed appraisers and adjusted for management’s estimates of costs to sell. Accordingly, values for OREO are classified as Level 3.
The following table presents, as of December 31, 2025, OREO measured at fair value on a nonrecurring basis that was still held in the Consolidated Balance Sheets at period-end. There was no impairment recognized during 2024 of OREO assets still held in the Consolidated Balance Sheets at period end.
| December 31, 2025 | |||||
| Carrying amount prior to remeasurement | $ | 4,182 | |||
| Impairment recognized in results of operations | (644) | ||||
| Fair value | $ | 3,538 | |||
Mortgage servicing rights: The fair value of mortgage servicing rights is determined using an income approach with various assumptions including expected cash flows, market discount rates, prepayment speeds and servicing costs. Because these factors are not all observable and include management’s assumptions, mortgage servicing rights are classified within Level 3 of the fair value hierarchy. Mortgage servicing rights were carried at amortized cost at December 31, 2025 and December 31, 2024. See Note 8, “Mortgage Servicing Rights,” for information about the valuation adjustments to the Company’s mortgage servicing rights.
The following table presents information as of December 31, 2025 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:
| Financial instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Inputs | ||||||||||||||||||||||
| Collateral dependent loans, net of allowance for credit losses | $ | 87,680 | Appraised value of collateral less estimated costs to sell | Estimated costs to sell | 10% | |||||||||||||||||||||
| OREO | $ | 3,538 | Appraised value of property less estimated costs to sell | Estimated costs to sell | 10% | |||||||||||||||||||||
The input of 10% on impairments and OREO is based primarily on historical experience with respect to carrying and marketing costs.
Fair Value Option
The Company elected to measure all mortgage loans originated for sale at fair value under the fair value option. Electing to measure these assets at fair value reduces certain timing differences and better matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them.
Net gains of $3,166 resulting from fair value changes of these mortgage loans were recorded in income during 2025, as compared to net losses of $3,309 in 2024 and net gains of $3,300 in 2023.
The Company’s valuation of mortgage loans held for sale incorporates an assumption for credit risk; however, given the short-term period that the Company holds these loans, valuation adjustments attributable to instrument-specific credit risk is nominal. Interest income on mortgage loans held for sale measured at fair value is accrued as it is earned based on contractual rates and is reflected in loan interest income on the Consolidated Statements of Income.
The following table summarizes the differences between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of December 31, 2025 and December 31, 2024:
| Aggregate Fair Value | Aggregate Unpaid Principal Balance | Difference | |||||||||||||||
| December 31, 2025 | |||||||||||||||||
| Mortgage loans held for sale measured at fair value | $ | 265,959 | $ | 260,841 | $ | 5,118 | |||||||||||
| December 31, 2024 | |||||||||||||||||
| Mortgage loans held for sale measured at fair value | $ | 246,171 | $ | 244,218 | $ | 1,953 | |||||||||||
Fair Value of Financial Instruments
The carrying amounts and estimated fair values of the Company’s financial instruments, including those assets and liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis, were as follows as of the dates presented:
| Fair Value | |||||||||||||||||||||||||||||
| Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||
| Financial assets | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 1,070,718 | $ | 1,070,718 | $ | — | $ | — | $ | 1,070,718 | |||||||||||||||||||
| Securities held to maturity | 1,030,073 | — | 961,870 | — | 961,870 | ||||||||||||||||||||||||
| Securities available for sale | 2,560,818 | — | 2,560,818 | — | 2,560,818 | ||||||||||||||||||||||||
| Loans held for sale | 265,959 | — | 265,959 | — | 265,959 | ||||||||||||||||||||||||
| Loans, net | 18,753,084 | — | — | 18,689,957 | 18,689,957 | ||||||||||||||||||||||||
| Mortgage servicing rights | 65,271 | — | — | 80,537 | 80,537 | ||||||||||||||||||||||||
| Derivative instruments | 47,098 | — | 47,098 | — | 47,098 | ||||||||||||||||||||||||
| Financial liabilities | |||||||||||||||||||||||||||||
| Deposits | $ | 21,473,070 | $ | — | $ | 21,465,168 | $ | — | $ | 21,465,168 | |||||||||||||||||||
| Short-term borrowings | 555,774 | 555,774 | — | 555,774 | |||||||||||||||||||||||||
| Junior subordinated debentures | 140,632 | — | 126,976 | — | 126,976 | ||||||||||||||||||||||||
| Subordinated notes | 359,124 | — | 352,616 | — | 352,616 | ||||||||||||||||||||||||
| Derivative instruments | 41,484 | — | 41,484 | — | 41,484 | ||||||||||||||||||||||||
| Fair Value | |||||||||||||||||||||||||||||
| Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| Financial assets | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 1,092,032 | $ | 1,092,032 | $ | — | $ | — | $ | 1,092,032 | |||||||||||||||||||
| Securities held to maturity | 1,126,112 | — | 1,002,544 | — | 1,002,544 | ||||||||||||||||||||||||
| Securities available for sale | 831,013 | — | 831,013 | — | 831,013 | ||||||||||||||||||||||||
| Loans held for sale | 246,171 | — | 246,171 | — | 246,171 | ||||||||||||||||||||||||
| Loans, net | 12,683,264 | — | — | 12,340,638 | 12,340,638 | ||||||||||||||||||||||||
| Mortgage servicing rights | 72,991 | — | — | 96,290 | 96,290 | ||||||||||||||||||||||||
| Derivative instruments | 38,954 | — | 38,954 | — | 38,954 | ||||||||||||||||||||||||
| Financial liabilities | |||||||||||||||||||||||||||||
| Deposits | $ | 14,572,612 | $ | 14,570,304 | $ | — | $ | 14,570,304 | |||||||||||||||||||||
| Short-term borrowings | 108,018 | 108,018 | — | 108,018 | |||||||||||||||||||||||||
| Junior subordinated debentures | 113,916 | — | 100,668 | — | 100,668 | ||||||||||||||||||||||||
| Subordinated notes | 316,698 | — | 295,868 | — | 295,868 | ||||||||||||||||||||||||
| Derivative instruments | 32,268 | — | 32,268 | — | 32,268 | ||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 29, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.