RENASANT CORPRNST

RENASANT CORP Leases Disclosure

10-KFiled Feb 26, 20252 min read
Leases
(In Thousands)

The Company enters into leases in both lessor and lessee capacities.

Lessor Arrangements
As of December 31, 2024 and 2023, the net investment in these leases was $30,846 and $42,761, comprised of $26,655 and $34,929 in lease receivables, $7,961 and $13,446 in residual balances and $3,770 and $5,614 in deferred income, respectively. In order to mitigate potential exposure to residual asset risk, the Company utilizes first amendment or terminal rental adjustment clause leases.

For the twelve months ended December 31, 2024 and 2023, the Company generated $1,080 and $1,441 in income from these leases, respectively, which is included in interest income on loans on the Consolidated Statements of Income.
The maturities of the lessor arrangements outstanding at December 31, 2024 is presented in the table below.
2025$365 
2026722 
2027205 
2028479 
20298,395 
Thereafter20,680 
Total lease receivables$30,846 
Lessee Arrangements
As of December 31, 2024 and 2023, right-of-use assets totaled $46,811 and $48,517 and lease liabilities totaled $49,385 and $51,130, respectively. The table below provides the components of lease cost and supplemental information for the periods presented.
Year ended December 31,
20242023
Operating lease cost (cost resulting from lease payments)$6,705 $7,333 
Short-term lease cost51 217 
Variable lease cost (cost excluded from lease payments)960 800 
Sublease income(639)(551)
Net lease cost$7,077 $7,799 
Operating lease - operating cash flows (fixed payments)6,714 7,171 
Operating lease - operating cash flows (liability reduction)4,943 5,472 
Weighted average lease term - operating leases (in years) (at period end) 18.1118.51
Weighted average discount rate - operating leases (at period end)3.55 %3.49 %
Right-of-use assets obtained in exchange for new lease liabilities - operating leases$4,630 $3,126 

The maturities of the lessee arrangements outstanding at December 31, 2024 are presented in the table below.
2025$6,186 
20265,367 
20274,727 
20284,494 
20294,274 
Thereafter42,294 
Total undiscounted cash flows67,342 
Discount on cash flows17,957 
Total operating lease liabilities$49,385 
Rental expense was $6,136, $6,859, and $7,623 for 2024, 2023, and 2022, respectively.

For more information on lease accounting, see Note 1, “Significant Accounting Policies” and on lease financing receivables, see Note 3, “Loans.”
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About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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