Slide 1: Fourth Quarter 2020 Earnings Call
Fourth Quarter 2020 Earnings Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain various statements about Renasant Corporation (“Renasant,” “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 Exchan
Slide 3: Overview
Overview Company Snapshot Loans and Deposits by State Assets: $14.9 billion Loans Loans: 10.9 Deposits: 12.1 Equity: 2.1 TN MS 20% 24% YTD Total Revenue(1) AL GA 2% 19% 33% FL 4% 24% Deposits 3% 71% TN 13% MS 38% GA Community Bank Wealth Management 34% Mortgage Insurance AL FL 12% 3% 3 Note: Financi
Slide 4: Renasant Footprint
Renasant Footprint Over 200 banking, lending, wealth management and insurance offices Winston-Salem Nashville Knoxville 81 Greensboro 95 40 TENNESSEE Raleigh 77 ARKANSAS 24 75 Memphis Charlotte NORTH CAROLINA Chattanooga Greenville 40 Huntsville 85 Tupelo 65 Columbia Wilmington Birmingham 95 Atlanta
Slide 5: Fourth Quarter Highlights
Fourth Quarter Highlights • Adjusted Pre-Provision Net Revenue (1) was $57.39 million, with net income of $31.52 million • Mortgage banking income was $39.76 million • Incurred $7.37 million in restructuring charges related to efficiency initiatives to better align our workforce and branch network a
Slide 6: Financial Condition
Financial Condition
Slide 7: Total Assets
Total Assets $14,897 $14,930 $15 ,000 $14,809 $14 ,000 $13,891 $13,401 $13 ,000 $12 ,000 $11 ,000 $10 ,000 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 7 Note: Dollars in millions
Slide 8: Loans and Yields
Loans and Yields 5.11% 4.93% 4.82% 4.31% 4.69% 4.09% 4.10% 4.24% 4.06% 4.03% $10,997 $11,085 $10,933 $9,690 $9,769 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1-4 Family Mortgage Commercial Mortgage Construction Other* C&I PPP Loan Yield Core Loan Yield** Note: Dollars in millions 8 * Other loans are co
Slide 9: Deposit Mix and Pricing
Deposit Mix and Pricing 0.76% 0.72% $11,846 $11,934 $12,060 $10,213 $10,412 0.49% 0.40% 0.33% 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Noninterest-bearing Interest-bearing Savings Time Cost of deposits 9 Note: Dollars in millions
Slide 10: Capital Position
Capital Position Regulatory Capital as of December 31, 2020 Capital Highlights • $50 million stock repurchase program in effect until October 2021. • Consistent dividend payment history including through the 2008 financial crisis. • In September 2020, the Company issued $100 million 4.50% fixed-to-f
Slide 11: Capital Ratios
Capital Ratios Ratio Strong4QCapital 2019 Position 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Minimum to be Well Capitalized Tangible Common 9.25% 8.48% 7.97% 8.19% 8.33% N/A Equity* Leverage 10.37 9.90 9.12 9.17 9.37 5.00% Tier 1 Risk Based 12.14 11.63 11.69 11.79 11.91 8.00 Total Risk Based 13.78 13.44 13.72
Slide 12: Asset Quality
[NRENASANT CORPORATION Asset Quality
Slide 13: Asset Quality
Asset Quality Loans 30-89 Days Past Due/ Classified Loans/Total Loans(1) Total Loans(1) $300,000 4.00% $100,000 2.00% 2.41% $250,000 3.00% $75,000 1.50% $200,000 $150,000 2.00% $50,000 1.00% 0.27% $100,000 $25,000 0.50% 1.00% $50,000 $- 0.00% $- 0.00% ($ in thousands) 4Q 1Q 2Q 3Q 4Q ($ in thousands)
Slide 14: Asset Quality
Asset Quality NPAs/Total Assets(1) Net Charge-offs/Average Loans(1) $150,000 3.00% $20,000 0.40% $125,000 2.50% $15,000 0.30% $100,000 2.00% $75,000 0.45% 1.50% $10,000 0.20% $50,000 1.00% $5,000 0.10% $25,000 0.50% 0.04% $- 0.00% $- 0.00% ($ in thousands) ($ in thousands) 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q
Slide 15: Asset Quality
Asset Quality Allowance/Total Loans Allowance/Nonperforming Loans $180,000 2.00% $180,000 500% 1.80% $160,000 $160,000 $140,000 1.50% $140,000 400% $120,000 $120,000 $100,000 300% 1.00% $100,000 $80,000 $80,000 $60,000 200% $60,000 $40,000 0.50% $40,000 100% $20,000 $20,000 $- 0.00% $- 0% ($ in thou
Slide 16: ACL Summary
ACL Summary 1/1/2020 3/31/2020 6/30/2020 9/30/2020 12/31/2020 ACL as a % ACL as a % ACL as a % ACL as a % ACL as a % ($ in thousands) ACL of Loans ACL of Loans ACL of Loans ACL of Loans ACL of Loans SBA Paycheck Protection Program - - - - - - - - - - Commercial, Financial, Agricultural $ 22,009 1.61
Slide 17: Profitability
[NRENASANT CORPORATION Profitability
Slide 18: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 1.79% 1.68% 1.49% 1.53% 1.34% $65.6 $63.2 $57.4 $49.6 $45.0 2.02% 1.81% 1.89% 2.02% 1.75% 1.81% 1.89% 2.02% 1.58% 1.75% 1.89% 1.58% 1.75% 1.58% $224.9 $224.9 $209.7 $209.7 $224.9 $192.5 $192.5 $209.7 $38.4 $192.5 $151.9 $30.0 $31.5 $151.9 $20.1 $167.6
Slide 19: Diluted Earnings per Share
Diluted Earnings per Share $0.70 $.67 $.68 $.65 $0.60 $.56 $.52 $.53 $.53 $0.50 $0.40 $.36 $0.30 $.20 $0.20 $0.10 $.04 $- 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 EPS (GAAP) EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial measure. See slide 29 in the appendix
Slide 20: Profitability Ratios
Profitability Ratios Return on Average Tangible Common Equity Return on Average Assets (ROAA) (ROTCE) 1.40% 16.00% 1.16% 14.00% 13.41% 13.52% 1.20% 1.13% 1.02% 12.00% 1.00% 11.01% 10.81% 0.84% 10.00% 0.80% 0.80% 0.79% 0.80% 8.00% 7.15% 0.60% 0.55% 5.63% 5.88% 6.00% 4.41% 0.40% 0.33% 3.85% 4.00% 0.20
Slide 21: Net Interest Income (FTE) & Net Interest Margin
Net Interest Income (FTE) & Net Interest Margin 3.90% 3.75% 3.38% 3.29% 3.35% 3.66% 3.56% 3.26% 3.23% 3.22% $110.9 $108.3 $107.9 $110.0 $107.5 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Interest Income a
Slide 22: Noninterest Income
Noninterest Income $70,928 $64,170 $62,864 MORTGAGE HIGHLIGHTS 4Q19 3Q20 4Q20 Locked Volume $0.9 bill $1.7 bill $1.4 bill Wholesale % 43 41 41 Retail % 57 59 59 $37,456 $37,570 Purchase % 59 55 50 Refinance % 41 45 50 ($ in thousands) 4Q19 3Q20 4Q20 Gain on sales of loans, net $ 10,438 $ 45,985 $ 36
Slide 23: Efficiency Ratio
Efficiency Ratio 79% 69% 69% 71% 64% 64% 65% 63% 64% 61% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Efficiency Ratio (GAAP) Adjusted Efficiency Ratio (non-GAAP)* Note: Dollars in millions *Adjusted Efficiency Ratio is a non-GAAP financial measure. See slide 33 in the appendix for a description of exclu
Slide 24: Appendix
Appendix
Slide 25: Loan Deferral Program
Loan Deferral Program • As of December 31, 2020, approximately 1.5% of the total loan portfolio, excluding PPP loans, is under the deferral program Deferrals by Category as of December 31, 2020 Average Balance Deferral Amount Deferred Category ($ in millions) ($ in thousands) Commercial, Financial,
Slide 26: COVID-19 Impacted Portfolios
COVID-19 Impacted Portfolios • Early identification of portfolios that may be more sensitive to COVID-19 related impacts • Proactively reached out to clients to understand the potential impact on their business activities • Identified Hospitality and Healthcare as more sensitive to the negative impa
Slide 27: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Net income (GAAP) $ 38,415 $ 2,008 $ 20,130 $ 29,992 $ 31,521 Income taxes 9,424 773 4,637 7,612 6,818 Provision for credit losses (including unfunded commitments) 2,950 2
Slide 28: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Net income (GAAP) $ 38,415 $ 2,008 $ 20,130 $ 29,992 $ 31,521 Merger and conversion expense 76 - - - - Debt prepayment penalties - - 90 28 3 MSR valuation a
Slide 29: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Diluted Earnings Per Share $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Net income (GAAP) $ 38,415 $ 2,008 $ 20,130 $ 29,992 $ 31,521 Merger and conversion expense 76 - - - - Debt prepayment penalties - - 90 28 3 MSR valuation adjustment (1,296) 9,571
Slide 30: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) $ in thousands 4Q19 1Q20 2Q20 3Q20 4Q20 Net income (GAAP) $ 38,415 $ 2,008 $ 20,130 $ 29,992 $ 31,521 Merger and conversion expense 76 - - - - Debt prepayment penalties - - 90 28 3 MSR valuation adjustment (1,
Slide 31: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Net interest income (FTE) (GAAP) $ 110,856 $ 108,316 $ 107,457 $ 107,885 $ 110,024 Less: Net interest income collected on problem loans 152 218 38
Slide 32: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Loan Yield $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Loan interest income (FTE) (GAAP) $ 121,752 $ 118,741 $ 113,727 $ 112,764 $ 113,457 Less: Net interest income collected on problem loans 152 218 384 282 18 Accretable yield recognized on pur
Slide 33: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio $ in thousands Q4 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Net interest income (FTE) (GAAP) $ 110,856 $ 108,316 $ 107,457 $ 107,885 $ 110,024 Total noninterest income (GAAP) 37,456 37,570 64,170 70,928 62,864 Securities gains (losses) - -
Slide 34: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible Common Equity and Tangible Book Value $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Actual shareholder's equity (GAAP) $ 2,125,689 $ 2,070,512 $ 2,082,946 $ 2,104,300 $ 2,132,578 Intangibles 976,943 975,048 973,214 971,481 969,823 Actual tangi