Renasant Corporation · NYSE:RNST
Renasant — Investor Presentation (May 2017)
41 slides from Renasant's investor presentation, May 8, 2017
Slide 1: Q2 2017 Investor Presentation
Q2 2017 Investor Presentation
Slide 2: Forward-looking statements
This presentation contains various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 about Renasant Corporation (“Renasant”) that are subject to risks and uncertainties. Congress passed the Private Securities Litigation Reform Act of 1995 in an e
Slide 3: More than 170 banking, lending, financial services and insurance offices
More than 170 banking, lending, financial services and insurance offices 3 Western 29% Northern 22% Eastern 27% Central 22% Portfolio Loans* [CATEG ORY NAME] 46% Northern 12% Eastern 25% Central 17% Total Deposits* *As of March 31, 2016
Slide 4: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
4 Enhance Profitability Capitalize on Opportunities Aggressively Manage Problem Credits Build Capital Ratios • Focus on highly-accretive acquisition opportunities • Leverage existing markets • Seek new markets • New lines of business • Selective balance sheet growth • Maintain dividend • Prudently m
Slide 5: Financial Highlights
Nashville Memphis TENNESSEE Tupelo Jackson MISSISSIPPI Birmingham Huntsville Montgomery Atlanta GEORGIA ALABAMA Source: SNL Financial 5 Financial Highlights Assets $3.59 Billion Gross Loans $2.28 Billion Deposits $2.69 Billion
Slide 6: Expansion and acquisition history
6 De novo expansion: Columbus, MS 2010 De novo expansion: Montgomery, AL Starkville, MS Tuscaloosa, AL De novo expansion: Maryville, TN Jonesborough, TN FDIC-Assisted Transaction: Crescent Bank and Trust Jasper, GA Assets: $1.0 billion FDIC-Assisted Transaction: American Trust Bank Roswe
Slide 7: Pro forma banking offices and highlights
Over 175 banking, lending, financial services and insurance offices 7 Assets $8.8 billion Gross Loans $6.2 billion Deposits $7.2 billion Highlights* *As of March 31, 2016
Slide 8: Merger of Renasant Corporation and Metropolitan BancGroup, Inc.
Merger of Renasant Corporation and Metropolitan BancGroup, Inc. January 17, 2017 8
Slide 9: Transaction terms
(1) Based on RNST‟s closing price of $38.77 as of January 17, 2017 (2) Aggregate value includes the value of options which will be cashed out at closing (3) Transaction multiples on per share basis using financial data as of and for the year ending December 31, 2016 Consideration Implied Price per S
Slide 10: Metropolitan BancGroup overview
Metropolitan BancGroup, Inc. is co-headquartered in Memphis, TN and Ridgeland, MS (Jackson, MS MSA) Approximately 70% of loans in Tennessee; 30% of loans in Mississippi 8 banking offices in key metropolitan markets: • Memphis, TN (2) • Nashville, TN (2) • Jackson, MS (4) Targeted focus on me
Slide 11: Strategically advantageous and financially attractive
Strategically Advantageous • Further enhances Renasant’s Memphis and Nashville, TN and Jackson, MS market presence • Complementary cultures and business model • Ability to leverage Metropolitan’s management experience in market • Ability to expand Metropolitan’s current relationships with more com
Slide 12: Pro forma franchise map
GEORGIA ALABAMA TENNESSEE FLORIDA MISSISSIPPI Atlanta Montgomery Auburn Tupelo Huntsville Birmingham Jackson Albany Gainesville Ocala Memphis Nashville Knoxville Johnson City Savannah 55 59 65 10 10 95 75 75 75 20 20 40 65 24 40 16 59 75 12 Pro Forma Franchise RNST Branches Metropolitan Branches Oli
Slide 13: Transaction assumptions and attractive returns
Assumptions • Loan Mark • Credit: Approximately 1.2% of gross loans • Cost Savings • Approximately 37.5% (75% realization rate in 2017; 100% in 2018 and thereafter) • Pre-Tax Merger Expenses • Approximately $22.6 million (1) • Core Deposit Intangible • 1.5%, 10 year amortization • Other purchase acc
Slide 14: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
14 Enhance Profitability Capitalize on Opportunities Aggressively Manage Problem Credits Build Capital Ratios • Focus on highly-accretive acquisition opportunities • Leverage existing markets • Seek new markets • New lines of business • Selective balance sheet growth • Maintain dividend • Prudently
Slide 15: Balance sheet restructuring: assets and deposits
• Managed deposit mix by emphasizing core deposit growth while allowing higher-priced, non-core deposits to erode • Significantly paid down high- cost borrowings • Restructured asset mix by redeploying excess cash levels into higher yielding investments and loans • Loan demand will drive deposit/fun
Slide 16: Loan growth
($ in millions) 2011 2012 2013 2014 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Not Acquired $2,242 $2,573 $2,886 $3,268 $3,830 $4,075 $4,292 $4,526 $4,711 $4,834 Acquired Covered* $339 $237 $182 $143 $93 $45 $42 $30 $0 $0 Acquired Not Covered - - $813 $577 $1,490 $1,453 $1,631 $1,549 $1,489 $1,402 Total Loans $2
Slide 17: Loan portfolio composition
At March 31, 2017, loans totaled $6.2B 78% Not Acquired 22% Acquired Const 7% Land Dev 3% 1-4 Family 31% Non Owner Occupied 26% Owner Occupied 19% C&I 12% Consumer 2% 17
Slide 18: ADC and CRE loan concentration levels
18 Acquisition, Development & Construction (ADC) and Commercial Real Estate (CRE) C&D and CRE Loan Concentration Levels 82% 83% 87% 91% 82% 81% 66% 0% 20% 40% 60% 80% 100% 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 265% 258% 267% 277% 251% 231% 227% 0% 50% 100% 150% 200% 250% 300% 3Q 15 4Q 15 1Q 16 2
Slide 19: Deposit and funding mix
DDA 9% Other Int Bearing Accts 26% Time Deposits 37% Borrowed Funds 28% 4Q 2008 Cost of Funds 2.81% $3.28B Non Interest DDA 21% Other Int Bearing Accts 54% Time Deposits 22% Borrowed Funds 3% 1Q 2017 $7.4B Cost of Funds .43% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1
Slide 20: Net interest income and margin
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2012 2013 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Marg in Y ie ld /C os t Yield on Earning Assets Cost of Funds Margin ($ in thousands) 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Slide 21: Noninterest income
25% 6% 33% 9% 16% 11% 1Q17 $32M* Svc Chgs Insurance Mtg Inc Wealth Mgmt Fees & Comm Other • Diversified sources of noninterest income Less reliant on NSF • Opportunities for growing Non Interest Income Expansion of Trust Division Wealth Management Services into larger, metropolitan markets Expans
Slide 22: Noninterest expense and efficiency ratio
• Continued focus on managing noninterest expenses and improving efficiency • Provided resources for eight de novo expansions since 2011 • Fluctuations in mortgage loan expense driven by higher mortgage production • Incurred merger related expenses during 2011, 2013, 2014, 2015, 2016 and 1Q17 22 40.
Slide 23: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
23 Enhance Profitability Capitalize on Opportunities Aggressively Manage Problem Credits Build Capital Ratios • Focus on highly-accretive acquisition opportunities • Leverage existing markets • Seek new markets • New lines of business • Selective balance sheet growth • Maintain dividend • Prudently
Slide 24: Non-performing assets
Not acquired NPAs approaching pre-credit cycle levels. Loss-share agreements with FDIC were terminated in Q4 2016 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Non-Acquired Acquired Covered Acquired Not Covered As a percentage of total
Slide 25: Allowance, provision and net charge-offs
*Ratios excludes loans and assets acquired in connection with the recent acquisitions or loss share transactions 0.00% 50.00% 100.00% 150.00% 200.00% 250.00% 300.00% 350.00% 400.00% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 ($)
Slide 26: Strong credit quality metrics
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 NPLs 30-89 Days Strong Credit Quality Metrics NPLs and Early Stage Delinquencies (30-89 Days Past Due Loans)* • NPL‟s to total loans were 0.31% as of March 31, 2017 26 *Ratios e
Slide 27: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
27 Enhance Profitability Capitalize on Opportunities Aggressively Manage Problem Credits Build Capital Ratios • Focus on highly-accretive acquisition opportunities • Leverage existing markets • Seek new markets • New lines of business • Selective balance sheet growth • Maintain dividend • Prudently
Slide 28: Capital ratios
4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00% 9.50% 2011 2012 2013 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 Tangible Common Equity Ratio* Renasant Capital 2011 2012 2013 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 Tangible Common Equity* 7.35% 7.71% 6.64% 7.52% 7.54% 7.52% 7.80% 8.03% 9.00% 9.16% Lev
Slide 29: Consistent and strong dividend
29 Dividends Per Share – Annual Payout $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 Consistent and Strong Dividend $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20 1Q14 3Q14 1Q15 3Q15
Slide 30: Summary
30 $8.8B franchise well positioned in attractive markets in the Southeast Announced merger with Metropolitan BancGroup, Inc. will add $1.2B in assets, $888M in deposits and $918M in loans Strategic focus on expanding footprint • Acquisition • De Novo • New lines of business Opportunity for f
Slide 31: Appendix
Appendix 31
Slide 32: Alabama deposit market share
12.4% 0.3% 0.5% 1.5% 1.0% 17.3% 6.2% 7.1% 0.9% 0.0% 5.0% 10.0% 15.0% 20.0% Ch am be rs Je ffe rs on Le e M ad iso n M on tg om er y M or ga n Sh elb y Ta lla de ga Tu sc al oo sa Merger with Heritage Financial Group, Inc. (Nasdaq: HBOS), which closed on July 1, 2015, added approximately $90.0 mill
Slide 33: Florida deposit market share
Jacksonville Miami Tallahassee Tampa Orlando RNST Branches 10 10 95 Gainesville Ocala Entered the Florida market through the acquisition of HBOS Moved into FL with 8 full-services branches along I-75 Opened Mortgage Production Offices in Destin and Jacksonville Q1 2017 Florida has the fourth
Slide 34: Georgia deposit market share
Entered the North GA market through two FDIC loss share transactions 12 full-service locations Expanded services include mortgage and wealth management personnel Grew GA presence by completing acquisition of Heritage Financial Group, Inc. ($1.7 billion in assets) Added 20 full-service bran
Slide 35: Mississippi deposit market share
35 Deposit Market Share by County – Top 5 Presence in 24 of 27 counties 6 1 Entered the Columbus, MS market in November 2010 and opened an office in Starkville, home of Mississippi State University, during late Q3 ‟11 City of Tupelo/Lee County – Recently completed a $12 million aquatic center an
Slide 36: Tennessee deposit market share
Our Tennessee Operations The Knoxville/Maryville MSA location opened in late Q2 „12 East Tennessee operations currently have 4 full-service branches, $255 million in loans and $111 million in deposits New lending teams added in both Memphis and Nashville during 2013 New Healthcare Lending
Slide 37: Tangible Common Equity Reconciliation of Non-GAAP Disclosures
37 Tangible Common Equity Reconciliation of Non-GAAP Disclosures
Slide 38: Reconciliation of Non-GAAP Disclosures: Efficiency Ratio
38 Reconciliation of Non-GAAP Disclosures Efficiency Ratio
Slide 39: Efficiency Ratio (Excluding Mortgage) Reconciliation
39 Efficiency Ratio (Excluding Mortgage) Reconciliation of Non-GAAP Disclosures
Slide 40: Additional information about the proposed merger
This communication is being made in respect of a proposed merger transaction between Metropolitan BancGroup, Inc. (“Metropolitan”) and Renasant. In connection with the proposed merger, Renasant filed with the Securities and Exchange Commission (the “SEC”) a definitive proxy statement for Metropolita
Slide 41: Management contact information
E. Robinson McGraw Chairman and Chief Executive Officer Kevin D. Chapman Executive Vice President and Chief Financial Officer 209 TROY STREET TUPELO, MS 38804-4827 PHONE: 1-800-680-1601 FACSIMILE: 1-662-680-1234 WWW.RENASANT.COM WWW.RENASANTBANK.COM 41