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Employee Benefit and Deferred Compensation Plans | 12 Months Ended
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Dec. 31, 2019
Retirement Benefits [Abstract] |
Employee Benefit and Deferred Compensation Plans | Employee Benefit and Deferred Compensation Plans (In Thousands, Except Share Data) Pension and Post-retirement Medical Plans The Company sponsors a noncontributory defined benefit pension plan, under which participation and benefit accruals ceased as of December 31, 1996. The Company’s funding policy is to contribute annually to the plan an amount not less than the minimum required contribution, as determined annually by consulting actuaries in accordance with funding standards imposed under the Internal Revenue Code of 1986, as amended. No contributions were made or required in 2019 or 2018. The Company does not anticipate that a contribution will be required in 2020. The plan’s accumulated benefit obligation and projected benefit obligation are substantially the same since benefit accruals have ceased. The accumulated benefit obligation was $28,020 and $24,945 at December 31, 2019 and 2018, respectively. There is no additional minimum pension liability required to be recognized. The Company provides retiree medical benefits, consisting of the opportunity to purchase coverage at subsidized rates under the Company’s group medical plan. Employees eligible to participate must: (i) have been employed by the Company and enrolled in the Company’s group medical plan as of December 31, 2004; and (ii) retire from the Company between ages 55 and 65 with at least 15 years of service or 70 points (points determined as the sum of age and service). The Company periodically determines the portion of the premiums to be paid by each retiree and the portion to be paid by the Company. Coverage ceases when a retiree attains age 65 and is eligible for Medicare. The Company contributed $151 and $89 to the plan in 2019 and 2018, respectively; the Company expects to contribute approximately $155 in 2020. The Company accounts for its obligations related to retiree benefits in accordance with ASC 715, “Compensation – Retirement Benefits.” The assumed rate of increase in the per capita cost of covered benefits (i.e., the health care cost trend rate) for 2020 is 4.8%. Increasing or decreasing the assumed health care cost trend rates by one percentage point in each year would not materially increase or decrease the accumulated post-retirement benefit obligation or the service and interest cost components of net periodic post-retirement benefit costs as of December 31, 2019 and for the year then ended. Information relating to the defined benefit pension plan maintained by Renasant Bank (“Pension Benefits - Renasant”) and to the post-retirement health and life plan (“Other Benefits”) as of December 31, 2019 and 2018 is as follows:
| Pension Benefits Renasant |  | Other Benefits
| 2019 |  | 2018 |  | 2019 |  | 2018
Change in benefit obligation |  |  |  |  |  |  |
Benefit obligation at beginning of year | $ | 24,945 |  |  | $ | 27,859 |  |  | $ | 881 |  |  | $ | 1,170 |
Service cost | — |  |  | — |  |  | 7 |  |  | 8 |
Interest cost | 1,176 |  |  | 1,043 |  |  | 31 |  |  | 31 |
Plan participants’ contributions | — |  |  | — |  |  | 60 |  |  | 75 |
Actuarial loss (gain) | 3,671 |  |  | (2,016 | ) |  | (60 | ) |  | (239 | )
Benefits paid | (1,772 | ) |  | (1,941 | ) |  | (212 | ) |  | (164 | )
Benefit obligation at end of year | $ | 28,020 |  |  | $ | 24,945 |  |  | $ | 707 |  |  | $ | 881 |
Change in fair value of plan assets |  |  |  |  |  |  |
Fair value of plan assets at beginning of year | $ | 25,206 |  |  | $ | 26,913 |  |  |  |  |
Actual return on plan assets | 5,151 |  |  | 234 |  |  |  |  |
Contribution by employer | — |  |  | — |  |  |  |  |
Benefits paid | (1,772 | ) |  | (1,941 | ) |  |  |  |
Fair value of plan assets at end of year | $ | 28,585 |  |  | $ | 25,206 |  |  |  |  |
Funded status at end of year | $ | 565 |  |  | $ | 261 |  |  | $ | (707 | ) |  | $ | (881 | )
Weighted-average assumptions as of December 31 |  |  |  |  |  |  |
Discount rate used to determine the benefit obligation | 3.59 | % |  | 4.56 | % |  | 2.91 | % |  | 4.07 | %
The discount rate assumptions at December 31, 2019 were determined using a yield curve approach. A yield curve was developed for a selection of high quality fixed-income investments whose cash flows approximate the timing and amount of expected cash flows from the plans. The selected discount rate is the rate that produces the same present value of the plans’ projected benefit payments. The components of net periodic benefit cost and other amounts recognized in other comprehensive income for the defined benefit pension and post-retirement health and life plans for the years ended December 31, 2019, 2018 and 2017 are as follows:
| Pension Benefits Renasant |  | Other Benefits
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 7 |  |  | $ | 8 |  |  | $ | 9 |
Interest cost | 1,176 |  |  | 1,043 |  |  | 1,168 |  |  | 31 |  |  | 31 |  |  | 42 |
Expected return on plan assets | (1,450 | ) |  | (2,077 | ) |  | (1,941 | ) |  | — |  |  | — |  |  | — |
Prior service cost recognized | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Recognized actuarial loss | 442 |  |  | 328 |  |  | 401 |  |  | (23 | ) |  | — |  |  | 6 |
Settlement/curtailment/termination losses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net periodic benefit cost | 168 |  |  | (706 | ) |  | (372 | ) |  | 15 |  |  | 39 |  |  | 57 |
Net actuarial (gain) loss arising during the period | (31 | ) |  | (173 | ) |  | (1,051 | ) |  | (60 | ) |  | (240 | ) |  | (328 | )
Net Settlement/curtailment/termination losses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of net actuarial loss recognized in net periodic pension cost | (442 | ) |  | (328 | ) |  | (401 | ) |  | 23 |  |  | — |  |  | (6 | )
Total recognized in other comprehensive income | (473 | ) |  | (501 | ) |  | (1,452 | ) |  | (37 | ) |  | (240 | ) |  | (334 | )
Total recognized in net periodic benefit cost and other comprehensive income | $ | (305 | ) |  | $ | (1,207 | ) |  | $ | (1,824 | ) |  | $ | (22 | ) |  | $ | (201 | ) |  | $ | (277 | )
Weighted-average assumptions as of December 31 |  |  |  |  |  |  |  |  |  |  |
Discount rate used to determine net periodic pension cost | 4.56 | % |  | 3.96 | % |  | 4.35 | % |  | 4.07 | % |  | 3.37 | % |  | 3.57 | %
Expected return on plan assets | 6.00 | % |  | 6.00 | % |  | 8.00 | % |  | N/A |  |  | N/A |  |  | N/A |
Future estimated benefit payments under the Renasant defined benefit pension plan and post-retirement health and life plan are as follows:
| Pension Benefits Renasant |  | Other Benefits
2020 | $ | 2,131 |  |  | $ | 155 |
2021 | 2,146 |  |  | 133 |
2022 | 2,145 |  |  | 103 |
2023 | 2,127 |  |  | 94 |
2024 | 2,105 |  |  | 86 |
2025 - 2029 | 9,763 |  |  | 195 |
Amounts recognized in accumulated other comprehensive income, before tax, for the year ended December 31, 2019 are as follows:
| Pension Benefits Renasant |  | Other Benefits
Prior service cost | $ | — |  |  | $ | — |
Actuarial loss (gain) | 9,090 |  |  | (192 | )
Total | $ | 9,090 |  |  | $ | (192 | )
The estimated costs that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are as follows:
| Pension Benefits Renasant |  | Other Benefits
Prior service cost | $ | — |  |  | $ | — |
Actuarial loss (gain) | 318 |  |  | (67 | )
Total | $ | 318 |  |  | $ | (67 | )
Prior to 2018, the investment objective of the Company’s defined benefit plan was to achieve above average income and moderate long-term growth, by combining an equity income strategy (allocation of 65% to 75% of assets) and an intermediate fixed income strategy (allocation of 25% to 35% of assets) and investing directly in debt and equity securities. In 2018, the Company’s investment committee modified the strategy by focusing on portfolio growth and including interest rate hedging, both of which were intended to preserve the funded status of the plan. Substantially, all of the plan’s assets were liquidated and the proceeds reinvested in a collective trust, which in turn invests in other collective or pooled trusts with individual investment mandates. The collective trust’s asset allocation is approximately 55% in growth assets, consisting of interests in trusts invested in equity securities, high yield fixed income securities, and direct real estate investments (approximately 5% of assets), and approximately 45% in assets intended to hedge against the volatility arising from interest rate risk, consisting of interests in trusts invested in long duration fixed income securities. The collective trust is actively managed allowing changes in the asset allocation to enhance returns and mitigate risk. Management’s trust investment committee periodically reviews the collective trust’s performance and asset allocation to ensure that the plan’s investment objectives are satisfied and that the investment strategy of the trust has not materially changed. The expected long-term rate of return was estimated using market benchmarks for investment classes applied to the plan’s target asset allocation and was computed using a valuation methodology which projects future returns based on current valuations rather than historical returns. The decrease in the expected return for 2018 (as compared to 2017) is attributable to the change in investment strategy, which resulted in a more conservative asset allocation. The fair values of the Company’s defined benefit pension plan assets by category at December 31, 2019 and 2018 are below. Investments in collective trusts, which are measured at net asset value per share (or “NAV”), consist of trusts that invest primarily in liquid equity and fixed income securities and have a small direct investment in real estate. There is generally no restriction on redemptions or withdrawals for benefit payments or in the event of plan termination; 60 days notice is required to redeem or withdraw assets for any other purpose.
| Quoted Prices In Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Measured at NAV |  | Totals
December 31, 2019 |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 39 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 39 |
Investments in collective trusts | — |  |  | — |  |  | — |  |  | 28,546 |  |  | 28,546 |
| $ | 39 |  |  | $ | — |  |  | $ | — |  |  | $ | 28,546 |  |  | $ | 28,585 |
| Quoted Prices In Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Measured at NAV |  | Totals
December 31, 2018 |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $40 |  | $— |  | $— |  | $— |  | $40
Investments in collective trusts | — |  | — |  | — |  | 25,166 |  | 25,166
| $40 |  | $— |  | $— |  | $25,166 |  | $25,206
Other Retirement Plans The Company maintains a 401(k) plan, which is a contributory plan maintained in the form of a “safe harbor” arrangement. Employees are immediately enrolled in the plan and eligible to make pre-tax deferrals, subject to limits imposed under the plan and the deferral limit established annually by the IRS, and receive Company matching contributions not in excess of 4% of compensation. The Company also makes a nondiscretionary contribution for each eligible participant in an amount equal to 5% of plan compensation and 5% of plan compensation in excess of the Social Security wage base. In order to participate in the nondiscretionary contribution, an employee must: (i) be employed on the last day of the year and be credited with 1000 hours of service during the year; (ii) die or become disabled during the year; or (iii) have attained the early or normal retirement age (as defined in the plan). The Company’s costs related to the 401(k) plan, excluding employee deferrals, in 2019, 2018 and 2017 were $16,009, $13,477 and $11,471, respectively. Deferred Compensation Plans and Arrangements The Company maintains two deferred compensation plans: a Deferred Stock Unit Plan and a Deferred Income Plan. Nonemployee directors may defer all or a portion of their fees and retainer; eligible officers may defer base salary and bonus subject to limits determined annually by the Company. Amounts deferred to the Deferred Stock Unit Plan are invested in units representing shares of the Company’s common stock; benefits are paid in the form of common stock, with cash distributed in lieu of fractional shares. Amounts deferred to the Deferred Income Plan are notionally invested in the discretion of each participant from among investment alternatives substantially similar to those available under the Company’s 401(k) plan. Directors and officers who participated in the predecessor to the Deferred Income Plan as of December 31, 2006, may also invest in a preferential interest rate alternative that is derived from the Moody’s Average Corporate Bond Rate. Benefits payable from the Deferred Income Plan equal the account balance of each participant. Beneficiaries of directors and officers who have continuously deferred at rates prescribed by the Company since January 1, 2005, and who die while employed by the Company or serving as a director may receive an additional preretirement death benefit from the Deferred Income Plan. In connection with its acquisition of Brand Group Holdings, Inc. and its affiliates, the Company assumed the Brand Group Holdings, Inc. Deferred Compensation Plan. Deferral elections in effect as of the time of acquisition were given effect for compensation earned during 2018; no further deferrals have been or will be made to the plan. Account balances maintained under the plan will be distributed as provided under the terms of the plan and individual participant elections. Pending distribution, balances will be notionally invested by each participant in designated investment alternatives. The Company’s Deferred Stock Unit and Deferred Income Plan are unfunded. It is anticipated that such plans will result in no additional cost to the Company because life insurance policies on the lives of participants have been purchased in amounts estimated to be sufficient to pay plan benefits. The Company is both the owner and beneficiary of the policies. A trust is maintained for the plan assumed in connection with the acquisition of Brand Group Holdings, Inc. The value of the trust is equal to the benefits payable from such plan. The trust is maintained in the form of a grantor trust, of which the Company is named as grantor and owner. The expense recorded in 2019, 2018 and 2017 for the Company’s Deferred Stock Unit and Deferred Income Plan, including in 2019 expense for the plan assumed in connection with the acquisition of Brand Group Holdings, Inc., inclusive of deferrals, was $3,610, $1,290 and $1,935, respectively. In 2007, the Company assumed supplemental executive retirement plans (SERPs) in connection with the acquisition of Capital Bancorp, Inc. and its affiliates. The plans are designed to provide four officers specified annual benefits for a 15-year period upon the attainment of a designated retirement age. Liabilities associated with the SERPs totaled $3,921 and $3,865 at December 31, 2019 and 2018, respectively. The plans are not qualified under Section 401 of the Internal Revenue Code. Incentive Compensation Plans Under the Company’s Performance Based Rewards Plan, annual cash bonuses are paid to eligible officers and employees, subject to the attainment of designated performance criteria that may relate to the Company’s performance, the performance of an affiliate, region, division or profit center, and/or to individual or team performance. The Company annually sets minimum, target, and superior levels of performance. Minimum performance must be attained for the payment of any bonus; superior performance must be attained for maximum payouts. The expense associated with the plan for 2019, 2018 and 2017 was $4,200, $5,117 and $4,490, respectively. The Company maintains a long-term equity compensation plan - the 2011 Long-Term Incentive Compensation Plan - which provides for the grant of stock options and the award of restricted stock. Options granted under the plan permit the acquisition of shares of the Company’s common stock at an exercise price equal to the fair market value of the shares on the date of grant. Options may be subject to time-based vesting or the attainment of performance criteria; all options expire ten years after the date of grant. Options that do not vest or expire unexercised are forfeited and canceled. There were no stock options granted during the years ended December 31, 2019, 2018 or 2017. There was no compensation expense associated with options recorded for the years ended December 31, 2019, 2018 or 2017.
The following table summarizes information about options outstanding, exercised and forfeited as of and for the three years ended December 31, 2019, 2018 and 2017:
| Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life |  | Aggregate Intrinsic Value
Outstanding at January 1, 2017 | 185,625 |  |  | $ | 15.97 |  |  |  |  |
Granted | — |  |  | — |  |  |  |  |
Exercised | (95,875 | ) |  | 16.25 |  |  |  |  |
Forfeited | — |  |  | — |  |  |  |  |
Outstanding at December 31, 2017 | 89,750 |  |  | $ | 15.67 |  |  | 3.14 |  | $ | 2,263 |
Exercisable at December 31, 2017 | 89,750 |  |  | $ | 15.67 |  |  | 3.14 |  | $ | 2,263 |
Granted | — |  |  | — |  |  |  |  |
Exercised | (41,000 | ) |  | 15.54 |  |  |  |  |
Forfeited | (5,000 | ) |  | 15.32 |  |  |  |  |
Outstanding at December 31, 2018 | 43,750 |  |  | $ | 15.84 |  |  | 2.63 |  | $ | 627 |
Exercisable at December 31, 2018 | 43,750 |  |  | $ | 15.84 |  |  | 2.63 |  | $ | 627 |
Granted | — |  |  | — |  |  |  |  |
Exercised | (14,500 | ) |  | 15.79 |  |  |  |  |
Forfeited | — |  |  | — |  |  |  |  |
Outstanding at December 31, 2019 | 29,250 |  |  | $ | 15.86 |  |  | 1.94 |  | $ | 574 |
Exercisable at December 31, 2019 | 29,250 |  |  | $ | 15.86 |  |  | 1.94 |  | $ | 574 |
The total intrinsic value of options exercised during the three years ended December 31, 2019, 2018 and 2017 was $290, $1,180 and $2,487, respectively. All options outstanding during 2019, 2018 and 2017 were fully vested and exercisable as of December 31, 2017. The Company also awards performance-based restricted stock to executives and other officers and employees and time-based restricted stock to non-employee directors, executives, and other officers and employees. Performance-based awards are subject to the attainment of designated performance criteria during a fixed performance cycle. Performance criteria may relate to the Company’s performance measured on an absolute basis or relative to a defined peer group. Performance criteria may also relate to the performance of an affiliate, region, division or profit center of the Company or to individual performance. The Company annually sets minimum, target, and superior levels; minimum performance must be attained for the vesting of any shares; superior performance must be attained for maximum payouts. Time-based restricted stock awards relate to a fixed number of shares that vest at the end of a designated service period. The fair value of each restricted stock award is the closing price of the Company’s common stock on the business day immediately preceding the date of the award. For restricted stock awarded under the plan, the Company recorded compensation expense of $10,046, $7,251 and $5,293 for the years ended December 31, 2019, 2018 and 2017, respectively. The following table summarizes the changes in restricted stock as of and for the year ended December 31, 2019:
| Performance- Based Restricted Stock |  | Weighted Average Grant-Date Fair Value |  | Time- Based Restricted Stock |  | Weighted Average Grant-Date Fair Value
Not vested at beginning of year | 41,300 |  |  | $ | 40.89 |  |  | 304,955 |  |  | $ | 41.82 |
Awarded | 154,250 |  |  | 30.18 |  |  | 308,557 |  |  | 32.12 |
Vested | (77,625 | ) |  | 30.18 |  |  | (92,292 | ) |  | 39.90 |
Forfeited and cancelled | (2,200 | ) |  | 30.18 |  |  | (20,288 | ) |  | 38.36 |
Not vested at end of year | 115,725 |  |  | $ | 34.00 |  |  | 500,932 |  |  | $ | 36.34 |
Unrecognized stock-based compensation expense related to restricted stock totaled $11,156 at December 31, 2019. As of such date, the weighted average period over which the unrecognized expense is expected to be recognized was approximately 1.9 years. There was no unrecognized stock-based compensation expense related to stock options at December 31, 2019. At December 31, 2019, an aggregate of 1,455,971 shares of Company common stock were available for issuance under the Company’s employee benefit plans of which 959,279 shares were available for issuance under the Company's 401(k) plan, 48,541 shares were available under the Company's Deferred Stock Unit Plan, and 448,151 shares were available under the Company's 2011 Long-Term Incentive Compensation Plan.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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