(In Thousands, Except Share Data)
This Form 10-Q may contain or incorporate by reference statements regarding
Renasant Corporation (referred to herein as the "Company", "we", "our", or "us")
that constitute "forward-looking statements" within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Statements preceded by, followed by or that
otherwise include the words "believes," "expects," "projects," "anticipates,"
"intends," "estimates," "plans," "potential," "possible," "may increase," "may
fluctuate," "will likely result," and similar expressions, or future or
conditional verbs such as "will," "should," "would" and "could," are generally
forward-looking in nature and not historical facts. Forward-looking statements
include information about the Company's future financial performance, business
strategy, projected plans and objectives and are based on the current beliefs
and expectations of management. The Company's management believes these
forward-looking statements are reasonable, but they are all inherently subject
to significant business, economic and competitive risks and uncertainties, many
of which are beyond the Company's control. In addition, these forward-looking
statements are subject to assumptions with respect to future business strategies
and decisions that are subject to change. Actual results may differ from those
indicated or implied in the forward-looking statements, and such differences may
be material. Prospective investors are cautioned that any such forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties and, accordingly, investors should not place undue reliance on
these forward-looking statements, which speak only as of the date they are made.
Important factors currently known to management that could cause our actual
results to differ materially from those in forward-looking statements include
the following: (i) the continued impact of the COVID-19 pandemic and related
governmental response measures on the U.S. economy and the economies of the
markets in which we operate; (ii) the Company's ability to efficiently integrate
acquisitions into its operations, retain the customers of these businesses, grow
the acquired operations and realize the cost savings expected from an
acquisition to the extent and in the timeframe anticipated by management; (iii)
the effect of economic conditions and interest rates on a national, regional or
international basis; (iv) timing and success of the implementation of changes in
operations to achieve enhanced earnings or effect cost savings; (v) competitive
pressures in the consumer finance, commercial finance, insurance, financial
services, asset management, retail banking, mortgage lending and auto lending
industries; (vi) the financial resources of, and products available from,
competitors; (vii) changes in laws and regulations as well as changes in
accounting standards; (viii) changes in policy by regulatory agencies; (ix)
changes in the securities and foreign exchange markets; (x) the Company's
potential growth, including its entrance or expansion into new markets, and the
need for sufficient capital to support that growth; (xi) changes in the quality
or composition of the Company's loan or investment portfolios, including adverse
developments in borrower industries or in the repayment ability of individual
borrowers; (xii) an insufficient allowance for credit losses as a result of
inaccurate assumptions; (xiii) general economic, market or business conditions,
including the impact of inflation; (xiv) changes in demand for loan products and
financial services; (xv) concentration of credit exposure; (xvi) changes or the
lack of changes in interest rates, yield curves and interest rate spread
relationships; (xvii) increased cybersecurity risk, including potential network
breaches, business disruptions or financial losses; (xviii) civil unrest,
natural disasters, epidemics and other catastrophic events in the Company's
geographic area; (xix) the impact, extent and timing of technological changes;
and (xx) other circumstances, many of which are beyond management's control.
Management believes that the assumptions underlying the Company's
forward-looking statements are reasonable, but any of the assumptions could
prove to be inaccurate.

The Company undertakes no obligation, and specifically disclaims any obligation,
to update or revise forward-looking statements, whether as a result of new
information or to reflect changed assumptions, the occurrence of unanticipated
events or changes to future operating results over time, except as required by
federal securities laws.

Financial Condition
The following discussion provides details regarding the changes in significant
balance sheet accounts at September 30, 2021 compared to December 31, 2020.
Assets
Total assets were $16,155,550 at September 30, 2021 compared to $14,929,612 at
December 31, 2020.
Investments
The securities portfolio is a liquid source of interest income that also can be
used in collateralizing certain deposits and other types of borrowings. The
following table shows the carrying value of our securities portfolio, all of
which are classified as
                                       53
--------------------------------------------------------------------------------
  Table of Contents
available for sale, by investment type and the percentage of such investment
type relative to the entire securities portfolio as of the dates presented:
                                                          September 30, 2021                                         December 31, 2020
                                                                          Percentage of                                             Percentage of
                                                Balance                     Portfolio                     Balance                     Portfolio
U.S. Treasury securities                  $           3,024                           0.12  %       $           7,079                           0.53  %
Obligations of other U.S. Government
agencies and corporations                                 -                              -                      1,009                           0.08
Obligations of states and political
subdivisions                                        378,981                          14.89                    305,201                          22.72
Mortgage-backed securities                        2,108,671                          82.87                    955,549                          71.12
Trust preferred securities                                -                              -                      9,012                           0.67
Other debt securities                                53,967                           2.12                     65,607                           4.88

                                          $       2,544,643                         100.00  %       $       1,343,457                         100.00  %


During the nine months ended September 30, 2021, we deployed a portion of our
excess liquidity into the securities portfolio and purchased $1,743,105 in
investment securities. Mortgage-backed securities and collateralized mortgage
obligations ("CMOs"), in the aggregate, comprised approximately 94% of these
purchases. CMOs are included in the "Mortgage-backed securities" line item in
the above table. The mortgage-backed securities and CMOs held in our investment
portfolio are primarily issued by government sponsored entities. Obligations of
state and political subdivisions comprised approximately 6% of purchases made
during the first nine months of 2021.
Proceeds from maturities, calls and principal payments on securities during the
first nine months of 2021 totaled $329,520. The Company sold municipal
securities, residential mortgage backed securities, trust preferred securities,
and other debt securities with a carrying value of $174,285 at the time of sale
for net proceeds of $176,406, resulting in a net gain on sale of $2,121 during
the first nine months of 2021. Proceeds from the maturities, calls and principal
payments on securities during the first nine months of 2020 totaled $314,363.
The Company sold municipal securities and residential mortgage backed securities
with a carrying value of $8,742 at the time of sale for net proceeds of $8,773,
resulting in net gain on sale of $31 during the first nine months of 2020.
For more information about the Company's security portfolio, see Note 2,
"Securities," in the Notes to Consolidated Financial Statements of the Company
in Item 1, Financial Statements, in this report.
Loans Held for Sale
Loans held for sale, which consist of residential mortgage loans being held
until they are sold in the secondary market, were $452,869 at September 30,
2021, as compared to $417,771 at December 31, 2020. Mortgage loans to be sold
are sold either on a "best efforts" basis or under a mandatory delivery sales
agreement. Under a "best efforts" sales agreement, residential real estate
originations are locked in at a contractual rate with third party private
investors or directly with government sponsored agencies, and the Company is
obligated to sell the mortgages to such investors only if the mortgages are
closed and funded. The risk we assume is conditioned upon loan underwriting and
market conditions in the national mortgage market. Under a mandatory delivery
sales agreement, the Company commits to deliver a certain principal amount of
mortgage loans to an investor at a specified price and delivery date. Penalties
are paid to the investor if we fail to satisfy the contract. Gains and losses
are realized at the time consideration is received and all other criteria for
sales treatment have been met. Our standard practice is to sell the loans within
30-40 days after the loan is funded. Although loan fees and some interest income
are derived from mortgage loans held for sale, the main source of income is
gains from the sale of these loans in the secondary market.
Loans
Total loans, excluding loans held for sale, were $10,016,824 at September 30,
2021 and $10,933,647 at December 31, 2020. Non purchased loans totaled
$8,875,880 at September 30, 2021 compared to $9,419,540 at December 31, 2020.
Loans purchased in previous acquisitions totaled $1,140,944 and $1,514,107 at
September 30, 2021 and December 31, 2020, respectively.
The tables below set forth the balance of loans outstanding, net of unearned
income and excluding loans held for sale, by loan type and the percentage of
each loan type to total loans as of the dates presented:
                                       54

--------------------------------------------------------------------------------


  Table of Contents
                                                                                            September 30, 2021
                                                                                                             Total              Percentage of
                                                             Non Purchased           Purchased               Loans               Total Loans
Commercial, financial, agricultural (1)                    $    1,321,569          $   114,450          $  1,436,019                    14.34  %
Lease financing, net of unearned income                            79,215                    -                79,215                     0.79
Real estate - construction:
Residential                                                       306,537                1,288               307,825                     3.07
Commercial                                                        779,766                3,705               783,471                     7.82

Total real estate - construction                                1,086,303                4,993             1,091,296                    10.89
Real estate - 1-4 family mortgage:
Primary                                                         1,657,195              150,944             1,808,139                    18.05
Home equity                                                       424,860               56,692               481,552                     4.81
Rental/investment                                                 268,609               22,507               291,116                     2.91
Land development                                                  133,732               10,204               143,936                     1.44
Total real estate - 1-4 family mortgage                         2,484,396              240,347             2,724,743                    27.21
Real estate - commercial mortgage:
Owner-occupied                                                  1,365,288              264,939             1,630,227                    16.27
Non-owner occupied                                              2,323,135              456,102             2,779,237                    27.74
Land development                                                  106,475               19,791               126,266                     1.26
Total real estate - commercial mortgage                         3,794,898              740,832             4,535,730                    45.27
Installment loans to individuals                                  109,499               40,322               149,821                     1.50
Total loans, net of unearned income                        $    8,875,880          $ 1,140,944          $ 10,016,824                   100.00  %


(1)Includes Paycheck Protection Program ("PPP") loans of $67,462 as of September
30, 2021.
                                                                                             December 31, 2020
                                                                                                             Total              Percentage of
                                                             Non Purchased           Purchased               Loans               Total Loans
Commercial, financial, agricultural (1)                    $    2,360,471          $   176,513          $  2,536,984                    23.20  %
Lease financing, net of unearned income                            75,862                    -                75,862                     0.69
Real estate - construction:
Residential                                                       243,814                2,859               246,673                     2.26
Commercial                                                        583,338               28,093               611,431                     5.59
Total real estate - construction                                  827,152               30,952               858,104                     7.85
Real estate - 1-4 family mortgage:
Primary                                                         1,536,181              214,770             1,750,951                    16.02
Home equity                                                       432,768               80,392               513,160                     4.69
Rental/investment                                                 264,436               31,928               296,364                     2.71
Land development                                                  123,179               14,654               137,833                     1.26
Total real estate - 1-4 family mortgage                         2,356,564              341,744             2,698,308                    24.68
Real estate - commercial mortgage:
Owner-occupied                                                  1,334,765              323,041             1,657,806                    15.16
Non-owner occupied                                              2,194,739              552,728             2,747,467                    25.13
Land development                                                  120,125               29,454               149,579                     1.37
Total real estate - commercial mortgage                         3,649,629              905,223             4,554,852                    41.66
Installment loans to individuals                                  149,862               59,675               209,537                     1.92
Total loans, net of unearned income                        $    9,419,540          $ 1,514,107          $ 10,933,647                   100.00  %



(1)Includes PPP loans of $1,128,703 as of December 31, 2020.


                                       55
--------------------------------------------------------------------------------
  Table of Contents
Loan concentrations are considered to exist when there are amounts loaned to a
number of borrowers engaged in similar activities that would cause them to be
similarly impacted by economic or other conditions. At September 30, 2021, there
were no concentrations of loans exceeding 10% of total loans which are not
disclosed as a category of loans separate from the categories listed above.
Deposits
The Company relies on deposits as its major source of funds. Total deposits were
$13,254,829 and $12,059,081 at September 30, 2021 and December 31, 2020,
respectively. Noninterest-bearing deposits were $4,492,650 and $3,685,048 at
September 30, 2021 and December 31, 2020, respectively, while interest-bearing
deposits were $8,762,179 and $8,374,033 at September 30, 2021 and December 31,
2020, respectively.
The growth in noninterest-bearing deposits across the Company's footprint during
the current year has been driven by government stimulus payments and client
sentiment to maintain liquidity. Management continues to focus on growing and
maintaining a stable source of funding, specifically noninterest-bearing
deposits and other core deposits (that is, deposits excluding time deposits
greater than $250,000). Noninterest bearing deposits represented 33.89% of total
deposits at September 30, 2021, as compared to 30.56% of total deposits at
December 31, 2020. Under certain circumstances, however, management may elect to
acquire non-core deposits (in the form of time deposits) or public fund deposits
(which are deposits of counties, municipalities or other political
subdivisions). The source of funds that we select depends on the terms and how
those terms assist us in mitigating interest rate risk, maintaining our
liquidity position and managing our net interest margin. Accordingly, funds are
acquired to meet anticipated funding needs at the rate and with other terms
that, in management's view, best address our interest rate risk, liquidity and
net interest margin parameters.
Public fund deposits may be readily obtained based on the Company's pricing bid
in comparison with competitors. Because public fund deposits are obtained
through a bid process, these deposit balances may fluctuate as competitive and
market forces change. Although the Company has focused on growing stable sources
of deposits to reduce reliance on public fund deposits, it participates in the
bidding process for public fund deposits when pricing and other terms make it
reasonable given market conditions or when management perceives that other
factors, such as the public entity's use of our treasury management or other
products and services, make such participation advisable. Our public fund
transaction accounts are principally obtained from public universities and
municipalities, including school boards and utilities. Public fund deposits were
$1,534,547 and $1,398,330 at September 30, 2021 and December 31, 2020,
respectively.
Borrowed Funds
Total borrowings include federal funds purchased, securities sold under
agreements to repurchase, advances from the FHLB, subordinated notes and junior
subordinated debentures and are classified on the Consolidated Balance Sheets as
either short-term borrowings or long-term debt. Short-term borrowings have
original maturities less than one year and typically include federal funds
purchased, securities sold under agreements to repurchase, and short-term FHLB
advances. The following table presents our short-term borrowings by type as of
the dates presented:
                                        September 30, 2021       December 

31, 2020


      Security repurchase agreements   $            11,253      $          

10,947
      Federal funds purchased                            -                  10,393

                                       $            11,253      $           21,340


At September 30, 2021, long-term debt consists of long-term FHLB advances, our
junior subordinated debentures and our subordinated notes. The following table
presents our long-term debt by type as of the dates presented:
                                  September 30, 2021      December 31, 2020

Long-term FHLB advances $ 150,425 $ 152,167 Junior subordinated debentures

              111,228                 110,794
Subordinated notes                          207,210                 212,009
                                 $          468,863      $          474,970


Long-term funds obtained from the FHLB are used to match-fund fixed rate loans
in order to minimize interest rate risk and to meet day-to-day liquidity needs,
particularly when the cost of such borrowing compares favorably to the rates
that we would be required to pay to attract deposits. At September 30, 2021,
there were no outstanding long-term FHLB advances scheduled to
                                       56
--------------------------------------------------------------------------------
  Table of Contents
mature within twelve months or less. The Company had $3,977,848 of availability
on unused lines of credit with the FHLB at September 30, 2021, as compared to
$3,784,520 at December 31, 2020.
The Company has issued subordinated notes, the proceeds of which have been used
for general corporate purposes, including providing capital to support the
Company's growth organically or through strategic acquisitions, repaying
indebtedness and financing investments and capital expenditures, and for
investments in Renasant Bank (the "Bank") as regulatory capital. The
subordinated notes qualify as Tier 2 capital under the current regulatory
guidelines.
The Company owns the outstanding common securities of business trusts that
issued corporation-obligated mandatorily redeemable preferred capital securities
to third-party investors. The trusts used the proceeds from the issuance of
their preferred capital securities and common securities (collectively referred
to as "capital securities") to buy floating rate junior subordinated debentures
issued by the Company (or by companies that the Company subsequently acquired).
The debentures are the trusts' only assets and interest payments from the
debentures finance the distributions paid on the capital securities.

Results of Operations
Net Income
Net income for the third quarter of 2021 was $40,063 compared to net income of
$29,992 for the third quarter of 2020. Basic and diluted earnings per share
("EPS") for the third quarter of 2021 were $0.71 as compared to basic and
diluted EPS of $0.53 for the third quarter of 2020. Net income for the nine
months ended September 30, 2021 was $138,838 compared to net income of $52,130
for the same period in 2020. Basic and diluted EPS were $2.47 and $2.46 for the
first nine months of 2021, respectively, as compared to $0.93 and $0.92 for the
first nine months of 2020, respectively.
From time to time, the Company incurs expenses and charges or recognizes
valuation adjustments in connection with certain transactions with respect to
which management is unable to accurately predict when these items will be
incurred or, when incurred, the amount of such items. The following table
presents the impact of these items on reported EPS for the dates presented. The
"COVID-19 related expenses" line item in the table below primarily consists of
(a) employee overtime and employee benefit accruals directly related to the
Company's response to both the COVID-19 pandemic itself and federal legislation
enacted to address the pandemic, such as the CARES Act, and (b) expenses
associated with supplying branches with protective equipment and sanitation
supplies (such as floor markings and cautionary signage for branches, face
coverings and hand sanitizer) as well as more frequent and rigorous branch
cleaning.
                                                                                      Three Months Ended
                                                           September 30, 2021                                 September 30, 2020
                                                                            Impact to                                             Impact to
                                                 Pre-tax     After-tax     Diluted EPS              Pre-tax        After-tax     Diluted EPS


Debt prepayment penalty                        $       -    $       -    $           -          $     28         $       22    $           -
MSR valuation adjustment                               -            -                -              (828)              (650)           (0.01)

COVID-19 related expenses                            323          253                -               570                448             0.01

                                                                                      Nine Months Ended
                                                           September 30, 2021                                 September 30, 2020
                                                                            Impact to                                             Impact to
                                                 Pre-tax     After-tax     Diluted EPS              Pre-tax        After-tax     Diluted EPS

Debt prepayment penalties                      $       -    $       -    $           -          $    118         $       94    $           -
MSR valuation adjustment                         (13,561)     (10,564)           (0.19)           13,694             10,916             0.19
Restructuring charges                                307          239                -                 -                  -                -
COVID-19 related expenses                          1,478        1,151             0.02             9,730              7,758             0.14


Net Interest Income
Net interest income, the difference between interest earned on assets and the
cost of interest-bearing liabilities, is the largest component of our net
income, comprising 67.41% of total revenue (i.e., net interest income on a fully
taxable equivalent basis and noninterest income) for the third quarter of 2021
and 64.61% of total revenue for the first nine months of 2021. The primary
concerns in managing net interest income are the volume, mix and repricing of
assets and liabilities.
                                       57
--------------------------------------------------------------------------------
  Table of Contents
Net interest income was $103,292 and $322,519 for the three and nine months
ended September 30, 2021, respectively, as compared to $106,286 and $318,670 for
the same respective periods in 2020. On a tax equivalent basis, net interest
income was $105,002 and $327,471 for the three and nine months ended September
30, 2021, respectively, as compared to $107,885 and $323,659 for the same
respective periods in 2020.
The following tables set forth average balance sheet data, including all major
categories of interest-earning assets and interest-bearing liabilities, together
with the interest earned or interest paid and the average yield or average rate
paid on each such category for the periods presented:
                                                                                      Three Months Ended September 30,
                                                                     2021                                                          2020
                                                                   Interest                                                       Interest
                                               Average             Income/              Yield/                Average             Income/              Yield/
                                               Balance             Expense               Rate                 Balance             Expense               Rate
Assets
Interest-earning assets:
Loans held for investment:
Non purchased                              $  8,690,443          $  84,427                  3.86  %       $  8,012,741          $  81,281                 4.04  %
Purchased                                     1,200,429             15,840                  5.24             1,723,714             24,034                 5.55

Paycheck Protection Program                     126,870              3,503                 10.95             1,305,229              7,449               

2.27


Total loans held for investment              10,017,742            103,770                  4.11            11,041,684            112,764                 4.06
Loans held for sale                             451,586              2,376                  2.13               378,225              3,144                 3.31
Securities:
Taxable(1)                                    1,942,647              6,688                  1.38             1,003,886              5,473                 2.17
Tax-exempt                                      324,219              2,297                  2.83               265,679              2,205                 3.30
Interest-bearing balances with banks          1,520,227                592                  0.15               344,948                 91               

0.10


Total interest-earning assets                14,256,421            115,723                  3.23            13,034,422            123,677                 3.77
Cash and due from banks                         195,095                                                        210,278
Intangible assets                               965,960                                                        972,394

Other assets                                    712,673                                                        711,065
Total assets                               $ 16,130,149                                                   $ 14,928,159
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand(2)                 $  6,231,718          $   3,821                  0.24  %       $  5,405,085          $   4,839                 0.36  %
Savings deposits                              1,006,847                192                  0.08               796,841                167                 0.08
Time deposits                                 1,506,192              2,959                  0.78             1,907,918              6,804                 1.42
Total interest-bearing deposits               8,744,757              6,972                  0.32             8,109,844             11,810                 0.58
Borrowed funds                                  482,709              3,749                  3.08               719,800              3,982                 2.20
Total interest-bearing liabilities            9,227,466             10,721                  0.46             8,829,644             15,792                 0.71
Noninterest-bearing deposits                  4,470,262                                                      3,723,059
Other liabilities                               212,990                                                        255,956
Shareholders' equity                          2,219,431                                                      2,119,500
Total liabilities and shareholders' equity $ 16,130,149                                                   $ 14,928,159
Net interest income/net interest margin                          $ 105,002                  2.93  %                             $ 107,885

3.29 %




(1)U.S. Government and some U.S. Government Agency securities are tax-exempt in
the states in which the Company operates.
(2)Interest-bearing demand deposits include interest-bearing transactional
accounts and money market deposits.
                                       58

--------------------------------------------------------------------------------


  Table of Contents
                                                                                      Nine Months Ended September 30,
                                                                    2021                                                          2020
                                                                   Interest                                                      Interest
                                               Average             Income/              Yield/               Average             Income/              Yield/
                                               Balance             Expense               Rate                Balance             Expense               Rate
Assets
Interest-earning assets:
Loans held for investment:
Non purchased                              $  8,525,359          $ 249,128                 3.91  %       $  7,847,197          $ 251,671                 4.28  %
Purchased                                     1,327,434             54,187                 5.46             1,877,449             80,226                 5.71

Paycheck Protection Program                     578,643             24,310                 5.62               725,891             13,335                

2.45


Total loans held for investment              10,431,436            327,625                 4.20            10,450,537            345,232                 4.41
Loans held for sale                             439,954              8,980                 2.73               351,975              9,108                 3.46
Securities:
Taxable(1)                                    1,505,611             17,077                 1.51             1,034,189             19,148                 2.47
Tax-exempt                                      316,159              6,915                 2.92               251,744              6,609                 3.51
Interest-bearing balances with banks          1,176,378              1,121                 0.13               387,116              1,098                

0.38


Total interest-earning assets                13,869,538            361,718                 3.49            12,475,561            381,195                 4.08
Cash and due from banks                         198,955                                                       203,582
Intangible assets                               967,458                                                       974,182

Other assets                                    687,159                                                       717,628
Total assets                               $ 15,723,110                                                  $ 14,370,953
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand(2)                 $  6,083,179          $  11,821                 0.26  %       $  5,166,393          $  19,616                 0.51  %
Savings deposits                                953,391                547                 0.08               741,933                592                 0.11
Time deposits                                 1,575,220             10,552                 0.90             2,019,173             23,967                 1.59
Total interest-bearing deposits               8,611,790             22,920                 0.36             7,927,499             44,175                 0.74
Borrowed funds                                  483,230             11,327                 3.13               849,494             13,361                 2.10
Total interest-bearing liabilities            9,095,020             34,247                 0.50             8,776,993             57,536                 0.88
Noninterest-bearing deposits                  4,202,364                                                     3,251,612
Other liabilities                               223,796                                                       233,730
Shareholders' equity                          2,201,930                                                     2,108,618
Total liabilities and shareholders' equity $ 15,723,110                                                  $ 14,370,953
Net interest income/net interest margin                          $ 327,471                 3.16  %                             $ 323,659

3.47 %




(1)U.S. Government and some U.S. Government Agency securities are tax-exempt in
the states in which the Company operates.
(2)Interest-bearing demand deposits include interest-bearing transactional
accounts and money market deposits.

The average balances of nonaccruing assets are included in the tables above.
Interest income and weighted average yields on tax-exempt loans and securities
have been computed on a fully tax equivalent basis assuming a federal tax rate
of 21% and a state tax rate of 4.45%, which is net of federal tax benefit.
Net interest margin and net interest income are influenced by internal and
external factors. Internal factors include balance sheet changes in volume, mix
and pricing decisions. External factors include changes in market interest
rates, competition and the shape of the interest rate yield curve. As discussed
in more detail below, the decline in loan yields due to the current low interest
rate environment as well as changes in the mix of earning assets during the
quarter due to increased liquidity on the balance sheet were the largest
contributing factors to the decrease in net interest margin for the three and
nine months ended September 30, 2021, as compared to the same periods in 2020.
The Company has continued to focus on lowering the cost of funding through
growing noninterest-bearing deposits and aggressively lowering interest rates on
interest-bearing deposits. The
                                       59
--------------------------------------------------------------------------------
  Table of Contents
Company has also increased its purchases of investment securities and continues
to evaluate options to mitigate the pressure on net interest margin.
The following tables set forth a summary of the changes in interest earned, on a
tax equivalent basis, and interest paid resulting from changes in volume and
rates for the Company for both the three and nine months ended September 30,
2021, as compared to the same respective periods in 2020 (the changes
attributable to the combined impact of yield/rate and volume have been allocated
on a pro-rata basis using the absolute value of amounts calculated):
                                       60

--------------------------------------------------------------------------------

Table of Contents


                                                         Three Months Ended 

September 30, 2021 Compared to the


                                                                 Three 

Months Ended September 30, 2020


                                                             Volume                Rate               Net
Interest income:
Loans held for investment:
Non purchased                                            $      6,821          $  (3,675)         $   3,146
Purchased                                                      (6,947)            (1,247)            (8,194)

Paycheck Protection Program                                   (11,665)             7,719             (3,946)
Loans held for sale                                               521             (1,289)              (768)
Securities:
Taxable                                                         3,756             (2,541)             1,215
Tax-exempt                                                        438               (346)                92
Interest-bearing balances with banks                              441                 60                501
Total interest-earning assets                                  (6,635)            (1,319)            (7,954)
Interest expense:
Interest-bearing demand deposits                                  671             (1,689)            (1,018)
Savings deposits                                                   41                (16)                25
Time deposits                                                  (1,225)            (2,620)            (3,845)
Borrowed funds                                                 (1,548)             1,315               (233)
Total interest-bearing liabilities                             (2,061)            (3,010)            (5,071)
Change in net interest income                            $     (4,574)

$ 1,691 $ (2,883)



                                                         Nine months ended 

September 30, 2021 Compared to the


                                                                 Nine 

Months Ended September 30, 2020


                                                             Volume                Rate               Net
Interest income:
Loans held for investment:
Non purchased                                            $     20,693          $ (23,236)         $  (2,543)
Purchased                                                     (22,646)            (3,393)           (26,039)

Paycheck Protection Program                                    (3,182)            14,157             10,975
Loans held for sale                                             2,010             (2,138)              (128)
Securities:
Taxable                                                         6,914             (8,985)            (2,071)
Tax-exempt                                                      1,528             (1,222)               306
Interest-bearing balances with banks                            1,118             (1,095)                23
Total interest-earning assets                                   6,435            (25,912)           (19,477)
Interest expense:
Interest-bearing demand deposits                                3,025            (10,820)            (7,795)
Savings deposits                                                  146               (191)               (45)
Time deposits                                                  (4,506)            (8,909)           (13,415)
Borrowed funds                                                 (7,090)             5,056             (2,034)
Total interest-bearing liabilities                             (8,425)           (14,864)           (23,289)
Change in net interest income                            $     14,860

$ (11,048) $ 3,812




Interest income, on a tax equivalent basis, was $115,723 and $361,718,
respectively, for the three and nine months ended September 30, 2021, as
compared to $123,677 and $381,195, respectively, for the same periods in 2020.
This decrease in interest income, on a tax equivalent basis, is due primarily to
the Federal Reserve maintaining low interest rates since March 2020 and changes
in the mix of earning assets during the year due to increased liquidity on the
balance sheet.
The following tables present the percentage of total average earning assets, by
type and yield, for the periods presented:
                                       61

--------------------------------------------------------------------------------


  Table of Contents
                                                Percentage of Total Average Earning Assets                              Yield
                                                            Three Months Ended                                    Three Months Ended
                                                              September 30,                                         September 30,
                                                      2021                      2020                         2021                         2020
Loans held for investment, excl. PPP                      69.38  %                 74.70  %                           4.02  %                4.30  %
Paycheck Protection Program                                0.89                    10.01                             10.95                   2.27
Loans held for sale                                        3.17                     2.90                              2.13                   3.31
Securities                                                15.90                     9.74                              1.59                   2.41
Other                                                     10.66                     2.65                              0.15                   0.10
Total earning assets                                     100.00  %                100.00  %                           3.23  %                3.77  %


                                                     Percentage of Total Average Earning Assets                              Yield
                                                                 Nine Months Ended                                     Nine Months Ended
                                                                   September 30,                                         September 30,
                                                           2021                      2020                         2021                        2020
Loans held for investment excl. PPP                            71.04  %                 77.95  %                          4.12  %                4.56  %
Paycheck Protection Program                                     4.17                     5.82                             5.62                   2.45
Loans held for sale                                             3.17                     2.82                             2.73                   3.46
Securities                                                     13.14                    10.31                             1.76                   2.68
Interest-bearing balances with banks                            8.48                     3.10                             0.13                   0.38
Total earning assets                                          100.00  %                100.00  %                          3.49  %                4.08  %



For the third quarter of 2021, interest income on loans held for investment, on
a tax equivalent basis, decreased $8,994 to $103,770 from $112,764 for the same
period in 2020. For the nine months ended September 30, 2021, interest income on
loans held for investment, on a tax equivalent basis, decreased $17,607 to
$327,625 from $345,232 for the same period in 2020. Interest income on loans
held for investment decreased primarily due to the Federal Reserve maintaining
low interest rates since March 2020. Interest income attributable to PPP loans
included in loan interest income for the three months ended September 30, 2021,
was $3,503, which consisted of $306 in interest income and $3,197 in accretion
of net origination fees, as compared to $7,449 for the three months ended
September 30, 2020, which consisted of $3,262 in interest income and $4,187 in
accretion of net origination fees. Interest income attributable to PPP loans
included in loan interest income for the nine months ended September 30, 2021,
was $24,310, which consisted of $4,222 in interest income and $20,088 in
accretion of net origination fees, as compared to $13,335 for the nine months
ended September 30, 2020, which consisted of $5,586 in interest income and
$7,749 in accretion of net origination fees. The PPP origination fees, net of
agent fees paid and other origination costs, are being accreted into interest
income over the life of the loan. If a PPP loan is forgiven in whole or in part,
as provided under the CARES Act, the Company will recognize the non-accreted
portion of the net origination fee attributable to the forgiven portion of such
loan as of the date of the final forgiveness determination. PPP loans increased
margin and loan yield by 7 basis points and 9 basis points, respectively, during
the third quarter of 2021, and 11 basis points and 8 basis points, respectively,
in the first nine months of 2021. PPP loans reduced margin and loan yield by 12
basis points and 23 basis points, respectively, in the third quarter of 2020 and
6 basis points and 14 basis points, respectively, in the first nine months of
2020.
The impact from interest income collected on problem loans and purchase
accounting adjustments on loans to total interest income on loans held for
investment, loan yield and net interest margin is shown in the following table
for the periods presented.
                                       62

--------------------------------------------------------------------------------


  Table of Contents
                                                   Three Months Ended                     Nine Months Ended
                                                     September 30,                          September 30,
                                                2021                2020               2021               2020
Net interest income collected on problem
loans                                       $      316          $     282          $   3,835          $      884
Accretable yield recognized on purchased
loans(1)                                         2,871              4,949              8,597              15,118

Total impact to interest income on loans $ 3,187 $ 5,231

       $  12,432          $   16,002

Impact to loan yield                              0.13  %            0.18  %            0.16  %             0.20  %

Impact to net interest margin                     0.09  %            0.16  %            0.12  %             0.17  %


(1)Includes additional interest income recognized in connection with the
acceleration of paydowns and payoffs from purchased loans of $1,649 and $2,286,
for the third quarter of 2021 and 2020, respectively. The impact was $4,145 and
$6,205 for the nine months ended September 30, 2021 and 2020, respectively. This
additional interest income increased total loan yield by 7 basis points and 8
basis points for the third quarter of 2021 and 2020, respectively, while
increasing net interest margin by 5 and 7 basis points for the same respective
periods. For the nine months ended September 30, 2021 and 2020, the additional
interest income increased total loan yields by 5 basis points and 8 basis
points, respectively, while increasing net interest margin by 4 basis points and
7 basis points, respectively.
For the third quarter of 2021, interest income on loans held for sale
(consisting of mortgage loans held for sale), on a tax equivalent basis,
decreased $768 to $2,376 from $3,144 for the same period in 2020. For the nine
months ended September 30, 2021, interest income on loans held for sale
(consisting of mortgage loans held for sale), on a tax equivalent basis,
decreased $128 to $8,980 from $9,108 for the same period in 2020.
Investment income, on a tax equivalent basis, increased $1,307 to $8,985 for the
third quarter of 2021 from $7,678 for the third quarter of 2020. Investment
income, on a tax equivalent basis, decreased $1,765 to $23,992 for the nine
months ended September 30, 2021 from $25,757 for the same period in 2020. The
tax equivalent yield on the investment portfolio for the third quarter of 2021
was 1.59%, down 82 basis points from 2.41% for the same period in 2020. The tax
equivalent yield on the investment portfolio for the nine months ended September
30, 2021 was 1.76%, down 92 basis points from 2.68% for the same period in 2020.
The decrease in taxable equivalent yield on securities was a result of the
current interest rate environment. The growth in the Company's investment
securities portfolio during the year has helped offset the loss of investment
income due to lower yield on securities.
Interest expense was $10,721 for the third quarter of 2021 as compared to
$15,792 for the same period in 2020. Interest expense for the nine months ended
September 30, 2021 was $34,247 as compared to $57,536 for the same period in
2020.
The following tables present, by type, the Company's funding sources, which
consist of total average deposits and borrowed funds, and the total cost of each
funding source for the periods presented:
                                                         Percentage of Total Average Deposits and
                                                                      Borrowed Funds                                   Cost of Funds
                                                                    Three Months Ended                               Three Months Ended
                                                                      September 30,                                    September 30,
                                                              2021                      2020                    2021                    2020
Noninterest-bearing demand                                        32.64  %                 29.66  %                    -  %                   -  %
Interest-bearing demand                                           45.49                    43.06                    0.24                   0.36
Savings                                                            7.35                     6.35                    0.08                   0.08
Time deposits                                                     11.00                    15.20                    0.78                   1.42
Short term borrowings                                              0.09                     2.49                    0.29                   0.95
Long-term Federal Home Loan Bank advances                          1.10                     1.21                    0.01                   0.16
Subordinated notes                                                 1.52                     1.15                    4.79                   5.46
Other borrowed funds                                               0.81                     0.88                    4.36                   4.32
Total deposits and borrowed funds                                100.00  %                100.00  %                 0.31  %                0.50  %


                                       63

--------------------------------------------------------------------------------


  Table of Contents
                                                         Percentage of Total Average Deposits and
                                                                      Borrowed Funds                                   Cost of Funds
                                                                    Nine Months Ended                                Nine Months Ended
                                                                      September 30,                                    September 30,
                                                              2021                      2020                    2021                    2020
Noninterest-bearing demand                                        31.60  %                 27.03  %                    -  %                   -  %
Interest-bearing demand                                           45.75                    42.95                    0.26                   0.51
Savings                                                            7.17                     6.17                    0.08                   0.11
Time deposits                                                     11.85                    16.79                    0.90                   1.59
Short-term borrowings                                              0.10                     3.85                    0.30                   1.02
Long-term Federal Home Loan Bank advances                          1.14                     1.27                    0.03                   0.80
Subordinated notes                                                 1.56                     1.03                    4.97                   5.54
Other long term borrowings                                         0.83                     0.91                    4.27                   4.56
Total deposits and borrowed funds                                100.00  %                100.00  %                 0.34  %                0.64  %



Interest expense on deposits was $6,972 and $11,810 for the three months ended
September 30, 2021 and 2020, respectively. The cost of total deposits was 0.21%
and 0.40% for the same respective periods. Interest expense on deposits was
$22,920 and $44,175 for the nine months ended September 30, 2021 and 2020,
respectively, and the cost of total deposits was 0.24% and 0.53% for the same
respective periods. The decrease in both deposit expense and cost is
attributable to the Company's efforts to reduce deposit rates as they reprice in
the current low interest rate environment. During 2021, the Company has
continued its efforts to grow non-interest bearing deposits, and such deposits
represent 33.89% of total deposits at September 30, 2021 compared to 30.56% of
total deposits at December 31, 2020. The growth in non-interest bearing deposits
during the year to date has been primarily driven by government stimulus
payments and client sentiment. Low cost deposits continue to be the preferred
choice of funding; however, the Company may rely on wholesale borrowings when
rates are advantageous.

Interest expense on total borrowings was $3,749 and $3,982 for the three months
ended September 30, 2021 and 2020, respectively. Interest expense on total
borrowings was $11,327 and $13,361 for the nine months ended September 30, 2021
and 2020, respectively. The decrease in interest expense is a result of lower
average borrowings.
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
                               Noninterest Income to Average Assets
      Three Months Ended September 30,                     Nine Months Ended September 30,
       2021                        2020                     2021                           2020
      1.25%                       1.89%                    1.53%                           1.60%


Total noninterest income includes fees generated from deposit services and other
fees and commissions, income from our insurance, wealth management and mortgage
banking operations, realized gains 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 $50,755 for the third quarter of 2021 as compared to $70,928 for the
same period in 2020. Noninterest income was $179,402 for the nine months ended
September 30, 2021 as compared to $172,668 for the same period in 2020. During
the third quarter of 2021, with the exception of mortgage banking operations,
all categories of noninterest income increased when compared to the prior period
as market activity began to rebound with the lifting of pandemic-related
restrictions across our footprint.
Service charges on deposit accounts include maintenance fees on accounts, per
item charges, account enhancement charges for additional packaged benefits and
overdraft fees. Service charges on deposit accounts were $9,337 and $7,486 for
the third quarter of 2021 and 2020, respectively, and $26,818 and $23,388 for
the nine months ended September 30, 2021 and 2020, respectively. Overdraft fees,
the largest component of service charges on deposits, were $4,876 for the three
months ended September 30, 2021, as compared to $4,299 for the same period in
2020. These fees were $13,830 for the nine months ended September 30, 2021
compared to $13,935 for the same period in 2020.
Fees and commissions were $3,837 during the third quarter of 2021 as compared to
$3,402 for the same period in 2020, and were $11,847 for the first nine months
of 2021 as compared to $9,427 for the same period in 2020. Fees and commissions
                                       64
--------------------------------------------------------------------------------
  Table of Contents
include fees related to deposit services, such as ATM fees and interchange fees
on debit card transactions. For the third quarter of 2021, interchange fees were
$2,685 as compared to $2,323 for the same period in 2020. Interchange fees were
$7,901 for the nine months ended September 30, 2021 as compared to $6,534 for
the same period in 2020.
Through Renasant Insurance, we offer a range of commercial and personal
insurance products through major insurance carriers. Income earned on insurance
products was $2,829 and $2,681 for the three months ended September 30, 2021 and
2020, respectively, and was $7,488 and $6,797 for the nine months ended
September 30, 2021 and 2020, respectively. Contingency income is a bonus
received from the insurance underwriters and is based both on commission income
and claims experience on our clients' policies during the previous year.
Increases and decreases in contingency income are reflective of corresponding
increases and decreases in the number of claims paid by insurance carriers.
Contingency income, which is included in "Other noninterest income" in the
Consolidated Statements of Income, was $4 and $8 for the three months ended
September 30, 2021 and 2020, respectively, and $1,057 and $926 for the nine
months ended September 30, 2021 and 2020, respectively.
Our Wealth Management segment has two primary divisions: Trust and Financial
Services. The Trust division operates on a custodial basis which includes
administration of benefit plans, as well as accounting and money management for
trust accounts. The division manages a number of trust accounts inclusive of
personal and corporate benefit accounts, IRAs, and custodial accounts. Fees for
managing these accounts are based on changes in market values of the assets
under management in the account, with the amount of the fee depending on the
type of account. The Financial Services division provides specialized products
and services to our customers, which include fixed and variable annuities,
mutual funds, and stocks offered through a third party provider. Wealth
Management revenue was $5,371 for the third quarter of 2021 compared to $4,364
for the same period in 2020 and was $15,182 for the nine months ended September
30, 2021 compared to $12,190 for the same period in 2020. The market value of
assets under management or administration was $4,687,357 and $3,890,374 at
September 30, 2021 and September 30, 2020, respectively.
Mortgage banking income is derived from the origination and sale of mortgage
loans and the servicing of mortgage loans that the Company has sold but retained
the right to service. Although loan fees and some interest income are derived
from mortgage loans held for sale, the main source of income is gains from the
sale of these loans in the secondary market. Originations of mortgage loans to
be sold totaled $966,651 in the third quarter of 2021 compared to $1,253,742 for
the same period in 2020. Mortgage loan originations totaled $3,189,474 in the
nine months ended September 30, 2021 compared to $3,277,576 for the same period
in 2020. While mortgage loan originations remain elevated compared to
pre-pandemic levels, margins have compressed as the interest rate environment
has begun to rise and housing inventories are below demand. Mortgage banking
income was $23,292 and $49,714 for the three months ended September 30, 2021 and
2020, respectively, and was $94,878 for the first nine months ended September
30, 2021 compared to $110,739 for the same period in 2020. The table below
presents the components of mortgage banking income included in noninterest
income for the periods presented.
                                        Three Months Ended September 30,    

Nine Months Ended September 30,


                                            2021                2020                  2021                  2020

Gain on sales of loans, net (1) $ 20,116 $ 45,985

   $        71,598          $  114,327
Fees, net                                    3,420              5,367                   12,841              13,597
Mortgage servicing loss, net                  (244)            (2,466)                  (3,122)             (3,491)
MSR valuation adjustment                         -                828                   13,561             (13,694)
Mortgage banking income, net            $   23,292          $  49,714          $        94,878          $  110,739


(1) Gain on sales of loans, net includes pipeline fair value adjustments
Bank-owned life insurance ("BOLI") income is derived from changes in the cash
surrender value of the bank-owned life insurance policies and proceeds received
upon the death of covered individuals. BOLI income was $1,602 for the three
months ended September 30, 2021 as compared to $1,267 for the same period in
2020, and $5,318 for the first nine months of September 30, 2021 as compared to
$3,759 for the same period in 2020. The increase is primarily due to the $1,222
of life insurance proceeds received during the first nine months of 2021. There
were no life insurance proceeds received during the nine months ended September
30, 2020. Additionally, the Company purchased $50,000 in BOLI policies during
the first nine months of 2021.
Other noninterest income was $3,723 and $2,014 for the three months ended
September 30, 2021 and 2020, respectively, and was $15,750 and $6,337 for the
nine months ended September 30, 2021 and 2020, respectively. Other noninterest
income includes income from our SBA banking division and other miscellaneous
income and can fluctuate based on production in our SBA banking division and
recognition of other seasonal income items.  In the first nine months of 2021,
the Company entered
                                       65
--------------------------------------------------------------------------------
  Table of Contents
into a referral relationship with a third party to utilize its technology
platform to originate PPP loans under the latest round of funding. The Company
earned $3,734 of PPP referral fees from its partner during the nine months ended
September 30, 2021.
Noninterest Expense
                               Noninterest Expense to Average Assets
       Three Months Ended September 30,                    Nine Months Ended September 30,
        2021                        2020                   2021                           2020
       2.56%                       3.10%                   2.80%                          3.25%


Noninterest expense was $103,999 and $116,510 for the third quarter of 2021 and
2020, respectively, and was $328,711 and $349,836 for the nine months ended
September 30, 2021 and 2020, respectively.
Salaries and employee benefits decreased $6,291 to $69,115 for the third quarter
of 2021 as compared to $75,406 for the same period in 2020. Salaries and
employee benefits decreased $9,852 to $218,104 for the nine months ended
September 30, 2021 as compared to $227,956 for the same period in 2020. The
decrease in salaries and employee benefits is primarily due to a decrease in
incentive expenses recognized for the nine months ended September 30, 2021 and
the cost savings realized by the voluntary early retirement program offered
during the fourth quarter of 2020.
Data processing costs increased to $5,277 in the third quarter of 2021 from
$5,259 for the same period in 2020 and were $16,380 for the nine months ended
September 30, 2021 as compared to $15,312 for the same period in 2020. The
Company continues to examine new and existing contracts to negotiate favorable
terms to offset the increased variable cost components of our data processing
costs, such as new accounts and increased transaction volume.
Net occupancy and equipment expense for the third quarter of 2021 was $11,748,
down from $13,296 for the same period in 2020. These expenses for the first nine
months of 2021 were $35,660, down from $40,927 for the same period in 2020. The
decrease in occupancy and equipment expense is primarily attributable to the
restructuring and non-renewal of certain branch leases.
Expenses related to other real estate owned for the third quarter of 2021 were
$168 as compared to $1,033 for the same period in 2020 and were $313 and $2,071,
respectively, for the first nine months of 2021 and 2020. Expenses on other real
estate owned included write downs of the carrying value to fair value on certain
pieces of property held in other real estate owned of $290 and $1,647 for the
first nine months of 2021 and 2020, respectively. For the nine months ended
September 30, 2021 and 2020, other real estate owned with a cost basis of $4,007
and $6,047, respectively, was sold, resulting in a net gain of $74 and net loss
of $27, respectively.
Professional fees include fees for legal and accounting services, such as
routine litigation matters, external audit services as well as assistance in
complying with newly-enacted and existing banking and governmental regulations.
Professional fees were $2,972 for the third quarter of 2021 as compared to
$3,197 for the same period in 2020 and $8,566 for the nine months ended
September 30, 2021 as compared to $8,355 for the same period in 2020.
Advertising and public relations expense was $2,922 for the third quarter of
2021 as compared to $2,240 for the same period in 2020, and $9,274 for the nine
months ended September 30, 2021 compared to $8,560 for the same period in 2020.
Amortization of intangible assets totaled $1,481 and $1,733 for the third
quarter of 2021 and 2020, respectively, and $4,618 and $5,462 for the nine
months ended September 30, 2021 and 2020, respectively. This amortization
relates to finite-lived intangible assets which are being amortized over the
useful lives as determined at acquisition. These finite-lived intangible assets
have remaining estimated useful lives ranging from approximately 2 years to 8
years.
Communication expenses, those expenses incurred for communication to clients and
between employees, were $2,198 for the third quarter of 2021 as compared to
$2,319 for the same period in 2020. Communication expenses were $6,781 for the
nine months ended September 30, 2021 as compared to $6,698 for the same period
in 2020.
Other noninterest expense includes the provision for unfunded commitments,
business development and travel expenses, other discretionary expenses, loan
fees expense and other miscellaneous fees and operating expenses. Other
noninterest expense was $8,118 and $28,708 for the three and nine months ended
September 30, 2021 as compared to $11,999 and $34,377 for the same periods in
2020. During the third quarter of 2021 there was a recovery of provision for
unfunded commitments of $200. The provision for unfunded commitments was $2,700
and $8,700 for the three and nine months ended September 30, 2020.
Efficiency Ratio
                                       66

--------------------------------------------------------------------------------


  Table of Contents
                                                                                 Efficiency Ratio
                                                  Three Months Ended September 30,               Nine Months Ended September 30,
                                                    2021                    2020                   2021                    2020
Efficiency ratio (GAAP)                                66.77  %               65.16  %                64.85  %               70.49  %

Adjusted efficiency ratio (Non-GAAP)(1)                66.06  %               62.63  %                65.66  %               63.89  %


(1)A reconciliation of this financial measure from GAAP to non-GAAP can be found
under the "Non-GAAP Financial Measures" heading at the end of this Item 2,
Management's Discussion and Analysis of Financial Condition and Results of
Operations.
The efficiency ratio is a measure of productivity in the banking industry. (This
ratio is a measure of our ability to turn expenses into revenue. That is, the
ratio is designed to reflect the percentage of one dollar that we must expend to
generate a dollar of revenue.) The Company calculates this ratio by dividing
noninterest expense by the sum of net interest income on a fully tax equivalent
basis and noninterest income. The table above shows the impact on the efficiency
ratio of items that (1) the Company does not consider to be part of our core
operating activities, such as amortization of intangibles, or (2) the Company
incurred in connection with certain transactions where management is unable to
accurately predict the timing of when these items will be incurred or, when
incurred, the amount of such items, such as expenses or recoveries incurred in
connection with our response to the COVID-19 pandemic, our MSR valuation
adjustment and the provision for unfunded commitments. We remain committed to
aggressively managing our costs within the framework of our business model. Our
goal is to improve the efficiency ratio over time from currently reported levels
as a result of revenue growth while at the same time controlling noninterest
expenses.
Income Taxes
Income tax expense for the third quarter of 2021 and 2020 was $11,185 and
$7,612, respectively. The effective tax rates for those periods were 21.84% and
21.58%, respectively. Income tax expense for the nine months ended September 30,
2021 and 2020 was $35,572 and $13,022, respectively. The effective tax rates for
those periods were 22.10% and 20.28%, respectively. In the second quarter of
2021 the Company received a benefit from a one-time state tax credit investment.
The investment of $3,112 was fully amortized in other noninterest expense and
the credit of $3,460 reduced income taxes for the second quarter of 2021.

Risk Management



The management of risk is an on-going process. Primary risks that are associated
with the Company include credit, interest rate and liquidity risk. Credit risk
and interest rate risk are discussed below, while liquidity risk is discussed in
the next subsection under the heading "Liquidity and Capital Resources."
Credit Risk and Allowance for Credit Losses on Loans and Unfunded Commitments

COVID-19 Update. At September 30, 2021, the Company's credit quality metrics
remained stable. The Company is continuing to monitor all asset categories given
that any category or borrower could be negatively impacted by the pandemic, with
enhanced monitoring of loans remaining on deferral under the Company's loan
deferral programs implemented in 2020 and described in more detail in the
section entitled "Credit Risk and Allowance for Credit Losses on Loans and
Unfunded Commitments" in Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations in our Annual Report on Form 10-K
for the year ended December 31, 2020, as well as a focus on those industries
more highly impacted by the pandemic, primarily the hospitality and senior
living industries. At September 30, 2021, the Company had 41 loans (not in
thousands) on deferral with an aggregate balance of approximately $3,360, or
0.04% of our loan portfolio (excluding PPP loans) by dollar value. In accordance
with the applicable guidance, none of these loans are considered "restructured
loans" and thus are not included in the discussion of our restructured loans
below.

Management of Credit Risk. Inherent in any lending activity is credit risk, that
is, the risk of loss should a borrower default. Credit risk is monitored and
managed on an ongoing basis by our credit administration department, our problem
asset resolution committee and the Board of Directors Credit Review Committee.
Oversight of the Company's lending operations (including adherence to our
policies and procedures governing the loan approval and monitoring process),
credit quality and loss mitigation are major concerns of credit administration
and these committees. The Company's central appraisal review department reviews
and approves third-party appraisals obtained by the Company on real estate
collateral and monitors loan maturities to ensure updated appraisals are
obtained. This department is managed by a State Certified General Real Estate
Appraiser and employs three additional State Certified General Real Estate
Appraisers and four real estate evaluators. In addition, we maintain a loan
review staff to independently monitor loan quality and lending practices. Loan
review personnel monitor and, if necessary, adjust the grades assigned to loans
through periodic examination, focusing their review on
                                       67
--------------------------------------------------------------------------------
  Table of Contents
commercial and real estate loans rather than consumer and small balance consumer
mortgage loans, such as 1-4 family mortgage loans.
In compliance with loan policy, the lending staff is given lending limits based
on their knowledge and experience. In addition, each lending officer's prior
performance is evaluated for credit quality and compliance as a tool for
establishing and enhancing lending limits. Before funds are advanced on consumer
and commercial loans below certain dollar thresholds, loans are reviewed and
scored using centralized underwriting methodologies. Loan quality, or
"risk-rating," grades are assigned based upon certain factors, which include the
scoring of the loans. This information is used to assist management in
monitoring credit quality. Loan requests of amounts greater than an officer's
lending limit are reviewed for approval by senior credit officers.
For loans with a commercial purpose, risk-rating grades are assigned by lending,
credit administration and loan review personnel, based on an analysis of the
financial and collateral strength and other credit attributes underlying each
loan. Loan grades range from 1 to 9, with 1 rated loans having the least credit
risk.
Management's problem asset resolution committee and the Board of Directors'
Credit Review Committee monitor loans that are past due or those that have been
downgraded and placed on the Company's internal watch list due to a decline in
the collateral value or cash flow of the borrower; the committees then adjust
loan grades accordingly. This information is used to assist management in
monitoring credit quality. When the ultimate collectability of a loan's
principal is in doubt, wholly or partially, the loan is placed on nonaccrual.
After all collection efforts have failed, collateral securing loans may be
repossessed and sold or, for loans secured by real estate, foreclosure
proceedings initiated. The collateral is sold at public auction for fair market
value (based upon recent appraisals as described above), with fees associated
with the foreclosure being deducted from the sales price. The purchase price is
applied to the outstanding loan balance. If the loan balance is greater than the
sales proceeds, the deficient balance is sent to the Board of Directors' Credit
Review Committee for charge-off approval. These charge-offs reduce the allowance
for credit losses on loans. Charge-offs reflect the realization of losses in the
portfolio that were recognized previously through the provision for credit
losses on loans.
The Company's practice is to charge off estimated losses as soon as such losses
are identified and reasonably quantified. Net charge-offs for the first nine
months of 2021 were $4,906, or 0.06% of average loans (annualized), compared to
net charge-offs of $2,898, or 0.04% of average loans (annualized), for the same
period in 2020. The charge-offs were fully reserved for in the Company's
allowance for credit losses on loans.

Allowance for Credit Losses on Loans; Provision for Credit Losses on Loans. The
allowance for credit losses is available to absorb credit losses inherent in the
loans held for investment portfolio. Loan losses are charged against the
allowance for credit losses when management believes the uncollectability of a
loan balance is confirmed. Subsequent recoveries, if any, are credited to the
allowance. Management evaluates the adequacy of the allowance on a quarterly
basis.

The appropriate level of the allowance is based on an ongoing analysis of the
loan portfolio and represents an amount that management deems adequate to
provide for inherent losses, including loans evaluated on a collective (pooled)
basis and those evaluated on an individual basis as set forth in ASC 326. The
credit loss estimation process involves procedures to appropriately consider the
unique characteristics of the Company's loan portfolio segments. Credit quality
is assessed and monitored by evaluating various attributes, and the results of
those evaluations are utilized in underwriting new loans and in the Company's
process for the estimation of expected credit losses. Credit quality monitoring
procedures and indicators can include an assessment of problem loans, the types
of loans, historical loss experience, new lending products, emerging credit
trends, changes in the size and character of loan categories, and other factors,
including our risk rating system, regulatory guidance and economic conditions,
such as the unemployment rate and GDP growth in the national and local economies
as well as trends in the market values of underlying collateral securing loans,
all as determined based on input from management, loan review staff and other
sources. This evaluation is complex and inherently subjective, as it requires
estimates by management that are inherently uncertain and therefore susceptible
to significant revision as more information becomes available. In future
periods, evaluations of the overall loan portfolio, in light of the factors and
forecasts then prevailing, may result in significant changes in the allowance
and provision for credit loss in those future periods.

The methodology for estimating the amount of expected credit losses reported in
the allowance for credit losses has two basic components: first, a collective or
pooled component for estimated expected credit losses for pools of loans that
share similar risk characteristics; and second, an asset-specific component
involving individual loans that do not share risk characteristics with other
loans and the measurement of expected credit losses for such individual loans.

•The allowance for credit losses for loans that share similar risk characteristics with other loans is calculated on a collective (or pooled) basis, where such loans are segregated into loan portfolio segments based upon similarity of credit risk. In


                                       68
--------------------------------------------------------------------------------
  Table of Contents
determining the allowance for credit losses on loans evaluated on a collective
basis, the Company categorizes loan pools based on loan type and/or risk rating.
The Company uses two CECL models: (1) a loss rate model, based on average
historical life-of-loan loss rates, is used for the Real Estate - 1-4 Family
Mortgage, Real Estate - Construction and the Installment Loans to Individuals
portfolio segments, and (2) for the Commercial, Real Estate - Commercial
Mortgage and Lease Financing portfolio segments, the Company uses a probability
of default/loss given default model, which calculates an expected loss
percentage for each loan pool by considering (a) the probability of default,
based on the migration of loans from performing (using risk ratings) to default
using life-of-loan analysis periods, and (b) the historical severity of loss,
based on the aggregate net lifetime losses incurred per loan pool.

The historical loss rates calculated as described above are adjusted, as
necessary, for both internal and external qualitative factors where there are
differences in the historical loss data of the Company and current or projected
future conditions. Internal factors include loss history, changes in credit
quality (including movement between risk ratings) and/or credit concentration
and the nature and volume of the respective loan portfolio segments. External
factors include current and reasonable and supportable forecasted economic
conditions and changes in collateral values. These factors are used to adjust
the historical loss rates (as described above) to ensure that they reflect
management's expectation of future conditions based on a reasonable and
supportable forecast period. To the extent the lives of the loans in the
portfolio extend beyond the period for which a reasonable and supportable
forecast can be made, when necessary, the models immediately revert back to the
historical loss rates adjusted for qualitative factors related to current
conditions.

•For loans that do not share similar risk characteristics with other loans, an
individual analysis is performed to determine the expected credit loss. If the
respective loan is collateral dependent (that is, when the borrower is
experiencing financial difficulty and repayment is expected to be provided
substantially through the operation or sale of the collateral), the expected
credit loss is measured as the difference between the amortized cost basis of
the loan and the fair value of the collateral. The fair value of collateral is
initially based on external appraisals. Generally, collateral values for loans
for which measurement of expected losses is dependent on the fair value of such
collateral are updated every twelve months, either from external third parties
or in-house certified appraisers. Third-party appraisals are obtained from a
pre-approved list of independent, third-party, local appraisal firms. The fair
value of the collateral derived from the external appraisal is then adjusted for
the estimated cost to sell if repayment or satisfaction of a loan is dependent
on the sale (rather than only on the operation) of the collateral. Other
acceptable methods for determining the expected credit losses for individually
evaluated loans (typically used for loans that are not collateral dependent) is
a discounted cash flow approach or, if applicable, an observable market price.
Once the expected credit loss amount is determined, an allowance equal to such
expected credit loss is included in the allowance for credit losses.

In addition to its quarterly analysis of the allowance for credit losses, on a
regular basis management and the Board of Directors review loan ratios. These
ratios include the allowance for credit losses as a percentage of total loans,
net charge-offs as a percentage of average loans, the provision for credit
losses as a percentage of average loans, nonperforming loans as a percentage of
total loans and the allowance coverage on nonperforming loans, among others.
Also, management reviews past due ratios by officer, community bank and the
Company as a whole.

The following table presents the allocation of the allowance for credit losses
on loans by loan category and the percentage of loans in each category to total
loans as of the dates presented:

                                 September 30,
                                      2021                               December 31, 2020           September 30, 2020
                                   Balance           % of Total                     Balance           % of Total             Balance           % of Total
Commercial, financial,
agricultural                    $   34,977                  14.34  %              $  39,031                 23.20  %       $  38,195                  23.89  %
Lease financing                      1,570                   0.79  %                  1,624                  0.69  %           1,832                   0.75  %
Real estate - construction          16,169                  10.89  %                 16,047                  7.85  %          13,819                   6.98  %
Real estate - 1-4 family
mortgage                            32,181                  27.21  %                 32,165                 24.68  %          32,705                  24.89  %
Real estate - commercial
mortgage                            73,895                  45.27  %                 76,127                 41.66  %          70,582                  41.30  %
Installment loans to
individuals                         11,246                   1.50  %                 11,150                  1.92  %          10,965                   2.19  %
Total                           $  170,038                 100.00  %              $ 176,144                100.00  %       $ 168,098                 100.00  %



The provision for credit losses on loans charged to operating expense is an
amount which, in the judgment of management, is necessary to maintain the
allowance for credit losses on loans at a level that is believed to be adequate
to meet the inherent risks of losses in our loan portfolio. The Company recorded
a negative provision (recovery) for credit losses of $1,200 during the
                                       69
--------------------------------------------------------------------------------
  Table of Contents
third quarter and first nine months of 2021, as compared to a provision for
credit losses on loans of $23,100 in the third quarter of 2020 and $76,350 in
the first nine months of 2020. The Company's allowance for credit loss model
considers economic projections, primarily the national unemployment rate and
GDP, over a reasonable and supportable period of two years. Based on the
continual improvements in these forecasts over the last few quarters, the
Company's allowance model indicated that a release of $1,200 of the allowance
for credit losses was appropriate during the third quarter of 2021.
The table below reflects the activity in the allowance for credit losses on
loans for the periods presented:
                                                             Three Months Ended                     Nine Months Ended
                                                                September 30,                         September 30,
                                                           2021               2020               2021               2020
Balance at beginning of period                         $ 172,354          $ 145,387          $ 176,144          $  52,162
Impact of the adoption of ASC 326                              -                  -                  -             42,484

Charge-offs


Commercial, financial, agricultural                        1,225                420              5,907              1,969
Lease financing                                               13                168                 13                168
Real estate - construction                                     -                136                 52                668
Real estate - 1-4 family mortgage                            276                720                529              1,083
Real estate - commercial mortgage                            184                553                416              2,600
Installment loans to individuals                           1,281              1,579              4,286              6,003
Total charge-offs                                          2,979              3,576             11,203             12,491

Recoveries


Commercial, financial, agricultural                          418                698                940                996
Lease financing                                               11                  1                 36                 11
Real estate - construction                                     -                 31                 13                 31
Real estate - 1-4 family mortgage                            193                152                855                288
Real estate - commercial mortgage                            190                711                504              2,451
Installment loans to individuals                           1,051              1,594              3,949              5,816
Total recoveries                                           1,863              3,187              6,297              9,593
Net charge-offs                                            1,116                389              4,906              2,898
Provision for credit losses on loans                      (1,200)            23,100             (1,200)            76,350
Balance at end of period                               $ 170,038          $ 168,098          $ 170,038          $ 168,098
Net charge-offs (annualized) to average loans               0.04  %            0.01  %            0.06  %            0.04  %
Net charge-offs to allowance for credit losses on
loans                                                       0.66  %            0.23  %            2.89  %            1.72  %
Allowance for credit losses on loans to:
Total loans                                                                                       1.70  %            1.52  %
Total loans excluding PPP loans(1)                                                                1.71  %            1.72  %
Nonperforming loans                                                                             299.68  %          367.05  %
Nonaccrual loans                                                                                304.96  %          385.09  %


(1) Allowance for credit losses on loans to total loans excluding PPP loans is a
non-GAAP financial measure. A reconciliation of this financial measure from GAAP
to non-GAAP as well as an explanation of why the Company provides non-GAAP
financial measures can be found under the "Non-GAAP Financial Measures" heading
at the end of this Item 2, Management's Discussion and Analysis of Financial
Condition and Results of Operations


                                       70

--------------------------------------------------------------------------------

Table of Contents The table below reflects annualized net charge-offs to daily average loans outstanding, by loan category, during the periods presented:


                                                                                              Nine Months Ended
                                                         September 30, 2021                                                        September 30, 2020
                                                                                   Annualized Net                                                           Annualized Net
                                                                               Charge-offs to Average                                                   Charge-offs to Average
                                 Net Charge-offs          Average Loans                 Loans              Net Charge-offs         Average Loans                 Loans
Commercial, financial,
agricultural                  $                4,967 $              1,968,541                     0.34% $                 973 $              2,109,787                     0.06%
Lease financing                                 (23)                   75,620                    (0.04)                   157                   83,844                      0.25
Real estate - construction                        39                  986,337                      0.01                   637                  818,779                      0.10
Real estate - 1-4 family
mortgage                                       (326)                2,711,619                    (0.02)                   795                2,808,646                      0.04
Real estate - commercial
mortgage                                        (88)                4,519,793                         -                   149                4,335,604                         -
Installment loans to
individuals                                      337                  169,526                      0.27                   187                  293,877                      0.08
Total                         $                4,906 $             10,431,436                     0.06% $               2,898 $             10,450,537                     0.04%


The following table provides further details of the Company's net charge-offs (recoveries) of loans secured by real estate for the periods presented:



                                                                  Three Months Ended                   Nine Months Ended
                                                                     September 30,                       September 30,
                                                                 2021             2020               2021                2020
Real estate - construction:
Residential                                                   $      -          $  105          $      39             $   637

Total real estate - construction                                     -             105                 39                 637
Real estate - 1-4 family mortgage:
Primary                                                            115             661                 57                 921
Home equity                                                        (46)            (29)              (109)                (51)
Rental/investment                                                    7              (8)              (192)                 20
Land development                                                     7             (56)               (82)                (95)
Total real estate - 1-4 family mortgage                             83             568               (326)                795
Real estate - commercial mortgage:
Owner-occupied                                                      18            (190)               (98)              1,224
Non-owner occupied                                                 (24)             33                (14)             (1,097)
Land development                                                     -              (1)                24                  22
Total real estate - commercial mortgage                             (6)           (158)               (88)                149

Total net charge-offs of loans secured by real estate $ 77

     $  515          $    (375)            $ 1,581



Allowance for Credit Losses on Unfunded Commitments; Provision for Credit Losses
on Unfunded Commitments. The Company maintains a separate allowance for credit
losses on unfunded loan commitments, which is included in the "Other
liabilities" line item on the Consolidated Balance Sheets. Management estimates
the amount of expected losses on unfunded loan commitments by calculating a
likelihood of funding over the contractual period for exposures that are not
unconditionally cancellable by the Company and applying the loss factors used in
the allowance for credit losses on loans methodology described above to unfunded
commitments for each loan type. No credit loss estimate is reported for
off-balance-sheet credit exposures that are unconditionally cancellable by the
Company. A roll-forward of the allowance for credit losses on unfunded
commitments is shown in the tables below.
                                       71
--------------------------------------------------------------------------------
  Table of Contents
Three Months Ended September 30,                                          

2021 2020 Allowance for credit losses on unfunded loan commitments: Beginning balance

                                                      $ 

20,535 $ 17,335

(Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense)

                                    (200)      2,700
Ending balance                                                         $ 

20,335 $ 20,035



Nine Months Ended September 30,                                           

2021 2020 Allowance for credit losses on unfunded loan commitments: Beginning balance

$ 20,535    $    946
Impact of the adoption of ASC 326                                           

- 10,389 (Recovery of) provision for credit losses on unfunded loan commitments (included in other noninterest expense)


(200)      8,700
Ending balance                                                         $ 20,335    $ 20,035


Nonperforming Assets. Nonperforming assets consist of nonperforming loans and
other real estate owned. Nonperforming loans are those on which the accrual of
interest has stopped or loans which are contractually 90 days past due on which
interest continues to accrue. Generally, the accrual of interest is discontinued
when the full collection of principal or interest is in doubt or when the
payment of principal or interest has been contractually 90 days past due, unless
the obligation is both well secured and in the process of collection.
Management, the problem asset resolution committee and our loan review staff
closely monitor loans that are considered to be nonperforming.

Other real estate owned consists of properties acquired through foreclosure or
acceptance of a deed in lieu of foreclosure. These properties are carried at the
lower of cost or fair market value based on appraised value less estimated
selling costs. Losses arising at the time of foreclosure of properties are
charged against the allowance for credit losses on loans. Reductions in the
carrying value subsequent to acquisition are charged to earnings and are
included in "Other real estate owned" in the Consolidated Statements of Income.

The following tables provide details of the Company's non purchased and purchased nonperforming assets as of the dates presented.


                                       72

--------------------------------------------------------------------------------


  Table of Contents
                                           Non Purchased       Purchased        Total
September 30, 2021
Nonaccruing loans                         $       29,266      $  26,492      $ 55,758
Accruing loans past due 90 days or more              908             74           982
Total nonperforming loans                         30,174         26,566        56,740
Other real estate owned                            2,252          2,453         4,705

Total nonperforming assets                $       32,426      $  29,019      $ 61,445
Nonperforming loans to total loans                                               0.57  %
Nonaccruing loans to total loans                                                 0.56  %
Nonperforming assets to total assets                                             0.38  %

December 31, 2020
Nonaccruing loans                         $       20,369      $  31,051      $ 51,420
Accruing loans past due 90 days or more            3,783            267         4,050
Total nonperforming loans                         24,152         31,318        55,470
Other real estate owned                            2,045          3,927         5,972

Total nonperforming assets                $       26,197      $  35,245      $ 61,442
Nonperforming loans to total loans                                               0.51  %
Nonaccruing loans to total loans                                                 0.47  %
Nonperforming assets to total assets                                        

0.41 %





The level of nonperforming loans increased $1,270 from December 31, 2020 to
September 30, 2021, while OREO decreased $1,267 during the same period.
The following table presents nonperforming loans by loan category as of the
dates presented:
                                                           September 30,                                       September 30,
                                                               2021                December 31, 2020               2020
Commercial, financial, agricultural                      $       16,027          $           16,668          $       17,422
Lease financing                                                      11                          48                       -
Real estate - construction:
Residential                                                           -                         497                       -
Commercial                                                            -                           -                       -
Total real estate - construction                                      -                         497                       -
Real estate - 1-4 family mortgage:
Primary                                                          17,378                      16,317                  15,583
Home equity                                                       2,041                       2,273                   1,949
Rental/investment                                                 1,016                       1,526                   1,284
Land development                                                    243                         345                     395
Total real estate - 1-4 family mortgage                          20,678                      20,461                  19,211
Real estate - commercial mortgage:
Owner-occupied                                                    5,732                       6,364                   6,805
Non-owner occupied                                               13,412                      10,204                   1,201
Land development                                                    366                         572                     519
Total real estate - commercial mortgage                          19,510                      17,140                   8,525
Installment loans to individuals                                    514                         656                     638

Total nonperforming loans                                $       56,740          $           55,470          $       45,796



                                       73

--------------------------------------------------------------------------------
  Table of Contents
Total nonperforming loans as a percentage of total loans were 0.57% as of
September 30, 2021 as compared to 0.51% and 0.41% as of December 31, 2020 and
September 30, 2020, respectively. The Company's coverage ratio, or its allowance
for credit losses on loans as a percentage of nonperforming loans, was 299.68%
as of September 30, 2021 as compared to 317.55% as of December 31, 2020 and
367.05% as of September 30, 2020.

Management has evaluated the aforementioned loans and other loans classified as
nonperforming and believes that all nonperforming loans have been adequately
reserved for in the allowance for credit losses at September 30, 2021.
Management also continually monitors past due loans for potential credit quality
deterioration. Total loans 30-89 days past due but still accruing interest were
$14,806 at September 30, 2021 as compared to $26,286 at December 31, 2020 and
$16,644 at September 30, 2020.

Although not classified as nonperforming loans, restructured loans are another
category of assets that contribute to our credit risk. Restructured loans are
those for which concessions have been granted to the borrower due to a
deterioration of the borrower's financial condition and are performing in
accordance with the new terms. Such concessions may include reduction in
interest rates or deferral of interest or principal payments. In evaluating
whether to restructure a loan, management analyzes the long-term financial
condition of the borrower, including guarantor and collateral support, to
determine whether the proposed concessions will increase the likelihood of
repayment of principal and interest. Restructured loans that are not performing
in accordance with their restructured terms that are either contractually 90
days past due or placed on nonaccrual status are reported as nonperforming
loans.

As shown below, restructured loans totaled $20,183 at September 30, 2021 as
compared to $20,448 at December 31, 2020 and $20,322 at September 30, 2020. At
September 30, 2021, loans restructured through interest rate concessions
represented 34% of total restructured loans, while loans restructured by a
concession in payment terms represented the remainder. The following table
provides further details of the Company's restructured loans in compliance with
their modified terms as of the dates presented:

                                                            September 30,                                       September 30,
                                                                2021                December 31, 2020               2020
Commercial, financial, agricultural                       $        1,062          $            2,326          $        2,417

Real estate - 1-4 family mortgage:
Primary                                                           11,415                       9,460                   8,359
Home equity                                                          299                         332                     333
Rental/investment                                                    354                         432                     724

Total real estate - 1-4 family mortgage                           12,068                      10,224                   9,416
Real estate - commercial mortgage:
Owner-occupied                                                     5,546                       6,838                   6,854
Non-owner occupied                                                 1,357                         797                   1,355
Land development                                                      76                         183                     186
Total real estate - commercial mortgage                            6,979                       7,818                   8,395
Installment loans to individuals                                      74                          80                      94
Total restructured loans in compliance with modified
terms                                                     $       20,183          $           20,448          $       20,322

Changes in the Company's restructured loans are set forth in the table below:


                                       74

--------------------------------------------------------------------------------

Table of Contents


                                                   2021          2020
Balance at January 1,                           $ 20,448      $ 11,954

Additional advances or loans with concessions 10,852 12,946 Reclassified as performing restructured loan 150

           428
Reductions due to:
Reclassified as nonperforming                     (2,855)       (2,999)
Paid in full                                      (7,341)       (1,360)

Charge-offs                                         (205)           (3)

Paydowns                                            (866)         (644)

Balance at September 30,                        $ 20,183      $ 20,322



The following table shows the principal amounts of nonperforming and
restructured loans as of the dates presented. All loans where information exists
about possible credit problems that would cause us to have serious doubts about
the borrower's ability to comply with the current repayment terms of the loan
have been reflected in the table below.

                                                         September 30,                                       September 30,
                                                             2021                December 31, 2020               2020
Nonaccruing loans                                      $       55,758          $           51,420          $       43,652
Accruing loans past due 90 days or more                           982                       4,050                   2,144
Total nonperforming loans                                      56,740                      55,470                  45,796
Restructured loans in compliance with modified terms           20,183                      20,448                  20,322
Total nonperforming and restructured loans             $       76,923          $           75,918          $       66,118


The following table provides details of the Company's other real estate owned as
of the dates presented:

                                 September 30,                               September 30,
                                      2021           December 31, 2020            2020
Residential real estate         $          503      $              179      $        1,870
Commercial real estate                   2,671                   2,665               2,403
Residential land development               315                   1,013      

1,669


Commercial land development              1,216                   2,115      

2,211



Total other real estate owned   $        4,705      $            5,972      

$ 8,153

Changes in the Company's other real estate owned were as follows:


                             2021         2020
Balance at January 1,      $ 5,972      $ 8,010

Transfers of loans           3,171        7,887

Impairments                   (290)      (1,647)
Dispositions                (4,007)      (6,047)
Other                         (141)         (50)
Balance at September 30,   $ 4,705      $ 8,153


Other real estate owned with a cost basis of $4,007 was sold during the nine
months ended September 30, 2021, resulting in a net gain of $74, while other
real estate owned with a cost basis of $6,047 was sold during the nine months
ended September 30, 2020, resulting in a net loss of $27.

Interest Rate Risk
Market risk is the risk of loss from adverse changes in market prices and rates.
The majority of assets and liabilities of a financial institution are monetary
in nature and therefore differ greatly from most commercial and industrial
companies that have significant investments in fixed assets and inventories. Our
market risk arises primarily from interest rate risk inherent in lending and
deposit-taking activities. Management believes a significant impact on the
Company's financial results stems from
                                       75
--------------------------------------------------------------------------------
  Table of Contents
our ability to react to changes in interest rates. A sudden and substantial
change in interest rates may adversely impact our earnings because the interest
rates borne by assets and liabilities do not change at the same speed, to the
same extent or on the same basis.
Because of the impact of interest rate fluctuations on our profitability, the
Board of Directors and management actively monitor and manage our interest rate
risk exposure. We have an Asset/Liability Committee ("ALCO") that is authorized
by the Board of Directors to monitor our interest rate sensitivity and to make
decisions relating to that process. The ALCO's goal is to structure our
asset/liability composition to maximize net interest income while managing
interest rate risk so as to minimize the adverse impact of changes in interest
rates on net interest income and capital. The ALCO uses an asset/liability model
as the primary quantitative tool in measuring the amount of interest rate risk
associated with changing market rates. The model is used to perform both net
interest income forecast simulations for multiple year horizons and economic
value of equity ("EVE") analyses, each under various interest rate scenarios,
which could impact the results presented in the table below.
Net interest income simulations measure the short and medium-term earnings
exposure from changes in market interest rates in a rigorous and explicit
fashion. Our current financial position is combined with assumptions regarding
future business to calculate net interest income under various hypothetical rate
scenarios. EVE measures our long-term earnings exposure from changes in market
rates of interest. EVE is defined as the present value of assets minus the
present value of liabilities at a point in time for a given set of market rate
assumptions. An increase in EVE due to a specified rate change indicates an
improvement in the long-term earnings capacity of the balance sheet assuming
that the rate change remains in effect over the life of the current balance
sheet.
The following table presents the projected impact of a change in interest rates
on (1) static EVE and (2) earnings at risk (that is, net interest income) for
the 1-12 and 13-24 month periods commencing October 1, 2021, in each case as
compared to the result under rates present in the market on September 30, 2021.
The changes in interest rates assume an instantaneous and parallel shift in the
yield curve and do not account for changes in the slope of the yield curve.
                                                                              Percentage Change In:
                                                    Economic Value Equity
   Immediate Change in Rates of (in basis                   (EVE)                     Earning at Risk (Net Interest Income)
                  points):                                  Static                    1-12 Months             13-24 Months

                    +200                                    11.83%                      16.87%                   22.94%
                    +100                                    7.20%                        8.57%                   12.20%



The rate shock results for the net interest income simulations for the next
twenty-four months produce an asset sensitive position at September 30, 2021 and
are all within the parameters set by the Board of Directors. The preceding
measures assume no change in the size or asset/liability compositions of the
balance sheet, and they do not reflect future actions the ALCO may undertake in
response to such changes in interest rates.
The scenarios assume instantaneous movements in interest rates in increments of
plus 100 and 200. As interest rates are adjusted over a period of time, it is
our strategy to proactively change the volume and mix of our balance sheet in
order to mitigate our interest rate risk. The computation of the prospective
effects of hypothetical interest rate changes requires numerous assumptions,
including asset prepayment speeds, the impact of competitive factors on our
pricing of loans and deposits, how responsive our deposit repricing is to the
change in market rates and the expected life of non-maturity deposits. These
business assumptions are based upon our experience, business plans and published
industry experience; however, such assumptions may not necessarily reflect the
manner or timing in which cash flows, asset yields and liability costs respond
to changes in market rates. Because these assumptions are inherently uncertain,
actual results will differ from simulated results.
The Company utilizes derivative financial instruments, including interest rate
contracts such as swaps, caps and/or floors, as part of its ongoing efforts to
mitigate its interest rate risk exposure and to facilitate the needs of its
customers. The Company enters into derivative instruments that are not
designated as hedging instruments to help its commercial customers manage their
exposure to interest rate fluctuations. To mitigate the interest rate risk
associated with these customer contracts, the Company enters into an offsetting
derivative contract position with other financial institutions. The Company
manages its credit risk, or potential risk of default by its commercial
customers, through credit limit approval and monitoring procedures. At
September 30, 2021, the Company had notional amounts of $190,200 on interest
rate contracts with corporate customers and $190,200 in offsetting interest rate
contracts with other financial institutions to mitigate the Company's rate
exposure on its corporate customers' contracts and certain fixed rate loans.

                                       76
--------------------------------------------------------------------------------
  Table of Contents
Additionally, the Company enters into interest rate lock commitments with its
customers to mitigate the interest rate risk associated with the commitments to
fund fixed-rate and adjustable rate residential mortgage loans and also enters
into forward commitments to sell residential mortgage loans to secondary market
investors.
The Company also enters into forward interest rate swap contracts on its FHLB
borrowings and its junior subordinated debentures that are accounted for as cash
flow hedges. Under each of these contracts, the Company pays a fixed rate of
interest and receives a variable rate of interest based on the three-month or
one-month LIBOR plus a predetermined spread. The Company entered into an
interest rate swap contract on its subordinated notes that is accounted for as a
fair value hedge. Under this contract, the Company pays a variable rate of
interest based on the three-month LIBOR plus a predetermined spread and receives
a fixed rate of interest.
For more information about the Company's derivatives, see Note 10, "Derivative
Instruments," in the Notes to Consolidated Financial Statements of the Company
in Item 1, Financial Statements.

Liquidity and Capital Resources



Liquidity management is the ability to meet the cash flow requirements of
customers who may be either depositors wishing to withdraw funds or borrowers
needing assurance that sufficient funds will be available to meet their credit
needs.

Core deposits, which are deposits excluding time deposits greater than $250,000,
are the major source of funds used by the Bank to meet cash flow needs.
Maintaining the ability to acquire these funds as needed in a variety of markets
is the key to assuring the Bank's liquidity. Management continually monitors the
Bank's liquidity and non-core dependency ratios to ensure compliance with
targets established by the Asset/Liability Management Committee.

Our investment portfolio is another alternative for meeting liquidity needs.
These assets generally have readily available markets that offer conversions to
cash as needed. Within the next twelve months, the securities portfolio is
forecasted to generate cash flow through principal payments and maturities equal
to approximately 18.85% of the carrying value of the total securities portfolio.
Securities within our investment portfolio are also used to secure certain
deposit types, short-term borrowings and derivative instruments. At
September 30, 2021, securities with a carrying value of $557,463 were pledged to
secure public fund deposits and as collateral for short-term borrowings and
derivative instruments as compared to securities with a carrying value of
$614,610 similarly pledged at December 31, 2020.

Other sources available for meeting liquidity needs include federal funds
purchased and short-term and long-term advances from the FHLB. Interest is
charged at the prevailing market rate on federal funds purchased and FHLB
advances. There were no short-term borrowings from the FHLB at September 30,
2021 or December 31, 2020. Long-term funds obtained from the FHLB are used to
match-fund fixed rate loans in order to minimize interest rate risk and also are
used to meet day-to-day liquidity needs, particularly when the cost of such
borrowing compares favorably to the rates that we would be required to pay to
attract deposits. At September 30, 2021, the balance of our outstanding
long-term advances with the FHLB was $150,425 compared to $152,167 at
December 31, 2020. The total amount of the remaining credit available to us from
the FHLB at September 30, 2021 was $3,977,848. We also maintain lines of credit
with other commercial banks totaling $180,000. These are unsecured lines of
credit with the majority maturing at various times within the next twelve
months. There were no amounts outstanding under these lines of credit at
September 30, 2021 or December 31, 2020.

In 2016 and 2020, we accessed the capital markets to generate liquidity in the
form of subordinated notes. In addition, we assumed subordinated notes in
connection with our acquisition of Metropolitan BancGroup, Inc. in 2017. The
carrying value of the subordinated notes, net of unamortized debt issuance
costs, was $207,210 at September 30, 2021.

The following table presents, by type, the Company's funding sources, which consist of total average deposits and borrowed funds, and the total cost of each funding source for the periods presented:


                                       77

--------------------------------------------------------------------------------


  Table of Contents
                                                         Percentage of Total Average Deposits and
                                                                      Borrowed Funds                                   Cost of Funds
                                                                    Nine Months Ended                                Nine Months Ended
                                                                      September 30,                                    September 30,
                                                              2021                      2020                    2021                    2020
Noninterest-bearing demand                                        31.60  %                 27.03  %                    -  %                   -  %
Interest-bearing demand                                           45.75                    42.95                    0.26                   0.51
Savings                                                            7.17                     6.17                    0.08                   0.11
Time deposits                                                     11.85                    16.79                    0.90                   1.59
Short-term borrowings                                              0.10                     3.85                    0.30                   1.02
Long-term Federal Home Loan Bank advances                          1.14                     1.27                    0.03                   0.80
Subordinated notes                                                 1.56                     1.03                    4.97                   5.54
Other borrowed funds                                               0.83                     0.91                    4.27                   4.56
Total deposits and borrowed funds                                100.00  %                100.00  %                 0.34  %                0.64  %



Our strategy in choosing funds is focused on minimizing cost in the context of
our balance sheet composition and interest rate risk position. Accordingly,
management targets growth of noninterest-bearing deposits. While we do not
control the types of deposit instruments our clients choose, we do influence
those choices with the rates and the deposit specials we offer. We constantly
monitor our funds position and evaluate the effect that various funding sources
have on our financial position.

Cash and cash equivalents were $1,476,141 at September 30, 2021, as compared to
$414,105 at September 30, 2020. Cash used in investing activities for the nine
months ended September 30, 2021 was $372,260, as compared to cash used in
investing activities of $1,355,398 for the nine months ended September 30, 2020.
Proceeds from the sale, maturity or call of securities within our investment
portfolio were $505,926 for the nine months ended September 30, 2021, as
compared to $323,136 for the same period in 2020. These proceeds were primarily
reinvested into the investment portfolio. Purchases of investment securities
were $1,743,105 for the first nine months of 2021, as compared to $304,955 for
the same period in 2020.

Cash provided by financing activities for the nine months ended September 30,
2021 was $1,125,027, as compared to $1,310,528 for the same period in 2020.
Deposits increased $1,195,748 and $1,721,118 for the nine months ended September
30, 2021 and 2020, respectively.

Restrictions on Bank Dividends, Loans and Advances
The Company's liquidity and capital resources, as well as its ability to pay
dividends to its shareholders, are substantially dependent on the ability of the
Renasant Bank to transfer funds to the Company in the form of dividends, loans
and advances. Under Mississippi law, a Mississippi bank may not pay dividends
unless its earned surplus is in excess of three times capital stock. A
Mississippi bank with earned surplus in excess of three times capital stock may
pay a dividend, subject to the approval of the Mississippi Department of Banking
and Consumer Finance (the "DBCF"). In addition, the FDIC also has the authority
to prohibit the Bank from engaging in business practices that the FDIC considers
to be unsafe or unsound, which, depending on the financial condition of the
bank, could include the payment of dividends. Accordingly, the approval of the
DBCF is required prior to the Bank paying dividends to the Company, and under
certain circumstances the approval of the FDIC may be required.
Federal Reserve regulations also limit the amount the Bank may loan to the
Company unless such loans are collateralized by specific obligations. At
September 30, 2021, the maximum amount available for transfer from the Bank to
the Company in the form of loans was $157,470. The Company maintains a $3,000
line of credit collateralized by cash with the Bank. There were no amounts
outstanding under this line of credit at September 30, 2021.
These restrictions did not have any impact on the Company's ability to meet its
cash obligations in the nine months ended September 30, 2021, nor does
management expect such restrictions to materially impact the Company's ability
to meet its currently-anticipated cash obligations.

Potential Demands on Liquidity from Off-Balance Sheet Arrangements
The Company enters into loan commitments and standby letters of credit in the
normal course of its business. Loan commitments are made to accommodate the
financial needs of the Company's customers. Standby letters of credit commit the
Company to make payments on behalf of customers when certain specified future
events occur. Both arrangements have credit risk essentially the same as that
involved in extending loans to customers and are subject to the Company's normal
credit
                                       78
--------------------------------------------------------------------------------
  Table of Contents
policies, including establishing a provision for credit losses on unfunded
commitments. Collateral (e.g., securities, receivables, inventory, equipment,
etc.) is obtained based on management's credit assessment of the customer.
Loan commitments and standby letters of credit do not necessarily represent
future cash requirements of the Company in that while the borrower has the
ability to draw upon these commitments at any time, these commitments often
expire without being drawn upon. The Company's unfunded loan commitments and
standby letters of credit outstanding were as follows as of the dates presented:
                               September 30, 2021       December 31, 2020
Loan commitments              $         3,058,740      $        2,749,988
Standby letters of credit                  95,201                  90,597



The Company closely monitors the amount of remaining future commitments to
borrowers in light of prevailing economic conditions and adjusts these
commitments and the provision related thereto as necessary. The Company will
continue this process as new commitments are entered into or existing
commitments are renewed. For a more detailed discussion related to the allowance
and provision for credit losses on unfunded loan commitments, refer to the "Risk
Management" section above.


Shareholders' Equity and Regulatory Matters



Total shareholders' equity of the Company was $2,203,944 at September 30, 2021
compared to $2,132,733 at December 31, 2020. Book value per share was $39.53 and
$37.95 at September 30, 2021 and December 31, 2020, respectively. The growth in
shareholders' equity was attributable to earnings retention offset by changes in
accumulated other comprehensive income and dividends declared.

The Company maintains a shelf registration statement with the Securities and
Exchange Commission ("SEC"). The shelf registration statement, which was
effective upon filing, allows the Company to raise capital from time to time
through the sale of common stock, preferred stock, depositary shares, debt
securities, rights, warrants and units, or a combination thereof, subject to
market conditions. Specific terms and prices will be determined at the time of
any offering under a separate prospectus supplement that the Company will file
with the SEC at the time of the specific offering. The proceeds of the sale of
securities, if and when offered, will be used for general corporate purposes or
as otherwise described in the prospectus supplement applicable to the offering
and could include the expansion of the Company's banking, insurance and wealth
management operations as well as other business opportunities.

The Company repurchased $21,315 of its common stock at a weighted average price of $34.82 per share during the first nine months of 2021.



On October 26, 2021, the Company's Board of Directors approved a new stock
repurchase program (the previous program having just expired), authorizing the
Company to repurchase up to $50,000 of its outstanding common stock, either in
open market purchases or privately-negotiated transactions. The new repurchase
program will remain in effect for one year or, if earlier, the repurchase of the
entire amount of common stock authorized to be repurchased.

The Company has junior subordinated debentures with a carrying value of $111,228
at September 30, 2021, of which $107,637 is included in the Company's Tier 1
capital. Federal Reserve guidelines limit the amount of securities that, similar
to our junior subordinated debentures, are includable in Tier 1 capital, but
these guidelines did not impact the debentures we include in Tier 1 capital at
September 30, 2021. Although our existing junior subordinated debentures are
currently unaffected by these Federal Reserve guidelines, on account of changes
enacted as part of the Dodd-Frank Act, any new trust preferred securities are
not includable in Tier 1 capital. Further, if as a result of an acquisition we
exceed $15,000,000 in assets, or if we make any acquisition after we have
exceeded $15,000,000 in assets, we will lose Tier 1 treatment of our junior
subordinated debentures.

The Company has subordinated notes with a carrying value of $207,210 at September 30, 2021, of which $197,360 is included in the Company's Tier 2 capital.



The Federal Reserve, the FDIC and the Office of the Comptroller of the Currency
have issued guidelines governing the levels of capital that bank holding
companies and banks must maintain. Those guidelines specify capital tiers, which
include the following classifications:

                                       79

--------------------------------------------------------------------------------


  Table of Contents
                                                    Tier 1 Capital to                                                 Tier 1 Capital to               Total Capital to
                                                      Average Assets       

      Common Equity Tier 1 to              Risk - Weighted                Risk - Weighted
Capital Tiers                                           (Leverage)                 Risk - Weighted Assets                   Assets                         Assets
Well capitalized                                       5% or above                     6.5% or above                     8% or above                    10% or above
Adequately capitalized                                 4% or above                     4.5% or above                     6% or above                    8% or above
Undercapitalized                                       Less than 4%                    Less than 4.5%                    Less than 6%                   Less than 8%
Significantly undercapitalized                         Less than 3%                     Less than 3%                     Less than 4%                   Less than 6%
Critically undercapitalized                                                             Tangible Equity / Total Assets less than 2%



                                       80

--------------------------------------------------------------------------------
  Table of Contents
The following table provides the capital and risk-based capital and leverage
ratios for the Company and for Renasant Bank as of the dates presented:
                                                                                                                                                Minimum Capital
                                                                                                                                               Requirement to be
                                                                                               Minimum Capital                                     Adequately
                                                                                              Requirement to be                        Capitalized 

(including the Capital


                                                       Actual                                  Well Capitalized                               Conservation Buffer)
                                             Amount               Ratio                  Amount                  Ratio                    Amount                    Ratio
September 30, 2021
Renasant Corporation:
Risk-based capital ratios:
Common equity tier 1 capital ratio       $ 1,287,684                11.02  %       $        759,458                 6.50  %       $            817,878                 7.00  %
Tier 1 risk-based capital ratio            1,395,321                11.94  %                934,717                 8.00  %                    993,137                 8.50  %
Total risk-based capital ratio             1,712,500                14.66  %              1,168,397                10.00  %                  1,226,816                10.50  %
Leverage capital ratios:
Tier 1 leverage ratio                      1,395,321                 9.18  %                759,755                 5.00  %                    607,804                 4.00  %

Renasant Bank:
Risk-based capital ratios:
Common equity tier 1 capital ratio       $ 1,454,879                12.45  %       $        759,370                 6.50  %       $            817,783                 7.00  %
Tier 1 risk-based capital ratio            1,454,879                12.45  %                934,609                 8.00  %                    993,022                 8.50  %
Total risk-based capital ratio             1,574,697                13.48  %              1,168,261                10.00  %                  1,226,674                10.50  %
Leverage capital ratios:
Tier 1 leverage ratio                      1,454,879                 9.58  %                758,964                 5.00  %                    607,171                 4.00  %

December 31, 2020
Renasant Corporation:
Risk-based capital ratios:
Common equity tier 1 capital ratio       $ 1,199,394                10.93  %       $        713,086                 6.50  %       $            767,939                 7.00  %
Tier 1 risk-based capital ratio            1,306,597                11.91  %                877,644                 8.00  %                    932,497                 8.50  %
Total risk-based capital ratio             1,653,694                15.07  %              1,097,055                10.00  %                  1,151,908                10.50  %
Leverage capital ratios:
Tier 1 leverage ratio                      1,306,597                 9.37  %                697,579                 5.00  %                    558,063                 4.00  %

Renasant Bank:
Risk-based capital ratios:
Common equity tier 1 capital ratio       $ 1,369,994                12.49  %       $        712,709                 6.50  %       $            767,533                 7.00  %
Tier 1 risk-based capital ratio            1,369,994                12.49  %                877,181                 8.00  %                    932,004                 8.50  %
Total risk-based capital ratio             1,504,985                13.73  %              1,096,476                10.00  %                  1,151,299                10.50  %
Leverage capital ratios:
Tier 1 leverage ratio                      1,369,994                 9.83  %                696,738                 5.00  %                    557,391                 4.00  %



The Company has elected to take advantage of transitional relief offered by the
Federal Reserve and FDIC to delay for two years the estimated impact of CECL on
regulatory capital, followed by a three-year transitional period to phase out
the capital benefit provided by the two-year delay.

For more information regarding the capital adequacy guidelines applicable to the
Company and Renasant Bank, please refer to Note 15, "Regulatory Matters," in the
Notes to the Consolidated Financial Statements of the Company in Item 1,
Financial Statements.
                                       81
--------------------------------------------------------------------------------
  Table of Contents
Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted
accounting principles in the United States of America ("GAAP"), this document
contains certain non-GAAP financial measures, namely, an adjusted efficiency
ratio and the allowance for credit losses on loans to total loans, excluding PPP
loans (the "adjusted allowance ratio"). The adjusted allowance ratio only
excludes PPP loans; the adjusted efficiency ratio adjusts GAAP financial
measures to exclude the amortization of intangible assets and certain items
(such as, when applicable, COVID-19 related expenses, debt prepayment penalties,
restructuring charges, provision for unfunded commitments, gains on sales of
securities and asset valuation adjustments) with respect to which the Company is
unable to accurately predict when these items will be incurred or, when
incurred, the amount thereof. With respect to COVID-19 related expenses in
particular, management added these expenses as a charge to exclude when
calculating non-GAAP financial measures because the expenses included within
this line item are readily quantifiable and possess the same characteristics
with respect to management's inability to accurately predict the timing or
amount thereof as the other items excluded when calculating non-GAAP financial
measures. Management uses the adjusted efficiency ratio when evaluating capital
utilization and adequacy, while it uses the adjusted allowance ratio to
determine the adequacy of our allowance with respect to loans not fully
guaranteed by the U.S. Small Business Administration. In addition, the Company
believes that non-GAAP financial measures facilitate the making of
period-to-period comparisons and are meaningful indicators of its operating
performance, particularly because these measures are widely used by industry
analysts for companies with merger and acquisition activities. Also, because the
amortization of intangible assets and items such as restructuring charges and
COVID-19 related expenses can vary extensively from company to company and, as
to intangible assets, are excluded from the calculation of a financial
institution's regulatory capital, the Company believes that the presentation of
this non-GAAP financial information allows readers to more easily compare the
Company's results to information provided in other regulatory reports and the
results of other companies. The reconciliations from GAAP to non-GAAP for these
financial measures are below.

                                                   Adjusted Efficiency Ratio
                                               Three months ended September 30,             Nine months ended September 30,
                                                   2021                   2020                  2021                   2020
Interest income (fully tax equivalent
basis)                                      $       115,723           $ 123,677          $       361,718           $ 381,195
Interest expense                                     10,721              15,792                   34,247              57,536
Net interest income (fully tax equivalent
basis)                                              105,002             107,885                  327,471             323,659

Total noninterest income                             50,755              70,928                  179,402             172,668
Net gains on sales of securities                        764                   -                    2,121                  31
MSR valuation adjustment                                  -                 828                   13,561             (13,694)
Adjusted noninterest income                          49,991              70,100                  163,720             186,331

Total noninterest expense                           103,999             116,510                  328,711             349,836
Intangible amortization                               1,481               1,733                    4,618               5,462

Debt prepayment penalty                                   -                  28                        -                 118
Restructuring charges                                     -                   -                      307                   -
COVID-19 related expenses                               323                 570                    1,478               9,730
Provision for unfunded commitments                     (200)              2,700                     (200)              8,700
Adjusted noninterest expense                        102,395             111,479                  322,508             325,826

Efficiency Ratio (GAAP)                               66.77   %           65.16  %                 64.85   %           70.49  %
Adjusted Efficiency Ratio (non-GAAP)                  66.06   %           62.63  %                 65.66   %           63.89  %



                                       82

--------------------------------------------------------------------------------

Table of Contents


            Allowance for Credit Losses on Loans to Total Loans, excluding PPP Loans
                                                  September 30, 2021          December 31, 2020
Total loans (GAAP)                               $       10,016,824          $      10,933,647
Less PPP loans                                               67,462                  1,128,703
Adjusted total loans (non-GAAP)                  $        9,949,362

$ 9,804,944



Allowance for Credit Losses on Loans             $          170,038          $         176,144
ACL/Total loans (GAAP)                                         1.70  %                    1.61  %
ACL/Total loans excluding PPP loans (non-GAAP)                 1.71  %                    1.80  %



The presentation of these non-GAAP financial measures is not intended to be
considered in isolation or as a substitute for any measure prepared in
accordance with GAAP. Readers of this Form 10-Q should note that, because there
are no standard definitions for the calculations as well as the results, the
Company's calculations may not be comparable to a similarly-titled measure
presented by other companies. Also, there may be limits in the usefulness of
this measure to readers of this document. As a result, the Company encourages
readers to consider its consolidated financial statements and footnotes thereto
in their entirety and not to rely on any single financial measure.

© Edgar Online, source Glimpses