Renasant (RNST) risk factors, FY2024 10-K

Risks Related to Our Industry

1. 01We are subject to lending risk
2. 02Our allowance for credit losses may be insufficient, and we may be required to further increase our provision for credit losses
3. 03We are subject to interest rate risk
4. 04Our financial results are constantly exposed to market risk
5. 05Inflation can have an impact on our business and our customers
6. 06Liquidity needs could adversely affect our results of operations and financial condition
7. 07If we are unable to maintain adequate liquidity, we may attempt to raise additional capital in the equity or debt markets, the success of which will depend on market conditions outside our control and on our financial performance
8. 08We depend on the accuracy and completeness of information furnished by others about customers and counterparties
9. 09Competition in our industry is intense and may adversely affect our profitability
10. 10We may be adversely affected by the soundness of other financial institutions and other third parties
11. 11We are subject to extensive government regulation, and such regulation could limit or restrict our activities and adversely affect our earnings
12. 12substantial additional costs as part of our efforts to comply with our legal and regulatory obligations. In addition, these efforts may divert management time and attention from initiatives designed to grow the Company and the Bank and enhance our earnings and profitability
13. 13Higher FDIC deposit insurance premiums and assessments could adversely affect our financial condition
14. 14The Company’s financial condition and results of operations contain estimates and assumptions made by management that could be inaccurate
15. 15We are subject to environmental liability risk associated with lending activities

Risks Related to Our Business

1. 16Our business may be adversely affected by current economic conditions in general and specifically in the markets in which we operate
2. 17We have a high concentration of loans secured by real estate
3. 18We have significant credit exposure in commercial real estate
4. 19We rely extensively on a number of vendors
5. 20Fraud is a major, and increasing, operational risk for us and all banks
6. 21Our risk management framework may not be effective in mitigating risk and loss to us
7. 22We have grown our business through the acquisition of entire financial institutions and non-bank commercial finance
8. 23We may fail to realize the anticipated benefits of our acquisitions
9. 24Additionally, general market and economic conditions or governmental actions affecting the financial industry generally may inhibit our successful integration of the operations acquired
10. 25We may face risks with respect to future acquisitions
11. 26Our ability to declare and pay dividends is limited by law, and we may be unable to pay future dividends
12. 27The trading volume in our common stock is less than that of other bank holding companies
13. 28Holders of our junior subordinated debentures have rights that are senior to those of our common shareholders
14. 29An investment in our common stock is not an insured deposit
15. 30Our Articles of Incorporation and Bylaws, as well as certain banking laws, could decrease our chances of being acquired even if our acquisition is in our shareholders’ best interests
16. 31Our issuance of preferred stock could adversely affect holders of our common stock and discourage a takeover
17. 32Shares eligible for future sale could have a dilutive effect

Risks Relating to the Merger with The First

1. 33Failure to complete our merger with The First could negatively affect our share price, future business and financial results
2. 34Although we anticipate closing the merger with The First in the first half of 2025, we cannot guarantee when, or whether, the merger will be completed. The completion of the merger is subject to a number of customary conditions which must be fulfilled in order to complete the merger
3. 35Regulatory approvals may not be received, may take longer than expected or may impose conditions that are not presently anticipated, cannot be met, or that could have an adverse effect on the combined company following the consummation of the merger with The First
4. 36We and The First will be subject to various uncertainties while the merger is pending that could adversely affect our financial results or the anticipated benefits of the merger
5. 37The First may have liabilities that are not known to us
6. 38The merger with The First may be completed on different terms from those contained in the merger agreement

Risks Relating to the Combined Company’s Business Following the Merger with The First

1. 39The market price of the common stock of the combined company after the merger with The First may be affected by factors different from those currently affecting the shares of Renasant common stock
2. 40Sales of substantial amounts of Renasant common stock in the open market by former shareholders of The First could depress Renasant’s stock price
3. 41We expect to incur substantial transaction costs in connection with the merger with The First
4. 42The merger with The First will result in changes to the board of directors of the combined company and the surviving bank
5. 43The unaudited pro forma financial information included as an exhibit to our Current Report on Form 8-K filed on July 29, 2024, is presented for illustrative purposes only and does not purport to be indicative of our financial condition or results of operations following the completion of the merger with The First