Slide 1: First Quarter 2024 Earnings Call
First Quarter 2024 Earnings Call
Slide 2: 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 Exchange Act of 1934, as amended.
Slide 3: Overview Snapshot and Footprint
3 Overview Snapshot Note: As of March 31, 2024 Assets: $17.3 billion Loans: 12.5 Deposits: 14.2 Equity: 2.3 Footprint Loans and Deposits by State MS 18% AL 29% FL 8% Other 1% GA 29% TN 15% Loans MS 38% AL 14% FL 3% GA 32% TN 13% Deposits *Republic Business Credit operates on a nationwide basis. Loca
Slide 4: First Quarter Highlights
4 First Quarter Highlights • Net income of $39.4 million with diluted EPS of $0.70 and adjusted diluted EPS (non-GAAP)(1) of $0.65. The Company sold a portion of its mortgage servicing rights (“MSRs”) for a gain of $3.5 million, which increased diluted EPS by $0.05 • Net interest margin decreased 3
Slide 5: Balance Sheet
5 Balance Sheet $17,474 $17,224 $17,182 $17,361 $17,346 $17,000 $17,050 $17,100 $17,150 $17,200 $17,250 $17,300 $17,350 $17,400 $17,450 $17,500 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Assets $11,766 $11,931 $12,168 $12,351 $12,501 $11,200 $11,400 $11,600 $11,800 $12,000 $12,200 $12,400 $12,600 1Q 20
Slide 6: Core Deposit Funding
6 Core Deposit Funding 25% 50% 6% 17% 2% Noninterest-bearing Interest-bearing* Savings Time Brokered • Average deposit account is $31 thousand; commercial and consumer deposit accounts, excluding time deposit accounts, averaged approximately $78 thousand and $13 thousand, respectively • Top 20 depos
Slide 7: Strong Liquidity Position
7 Strong Liquidity Position 85% 85% 86% 88% 88% $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Loans to Deposits 20.9% 18.4% 16.9% 17.0% 16.2% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Cash and Securities to Total Assets Average Interest Earning
Slide 8: Capital
8 Capital • $100 million stock repurchase program is in effect through October 2024; there was no buyback activity in the first quarter of 2024 • Consistent dividend payment history, including through the 2008 financial crisis • Unrealized losses on the HTM portfolio would have a negative impact of
Slide 9: Asset Quality
9 Asset Quality 2.44% 2.32% 2.27% 2.16% 2.76% 2.00% 2.50% 3.00% 3.50% 4.00% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Criticized Loans/Total Loans 0.43% 0.10% 0.11% 0.44% 0.48% 0.0% 0.5% 1.0% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Loans 30-89 Days Past Due/ Total Loans 0.16% 0.13% 0.06% 0.06% 0.01% 0
Slide 10: Profitability
10 Profitability Note: Dollars in millions except per share amounts. *Adjusted Diluted EPS, Adjusted Net Income, Adjusted Net Interest Income (FTE), PPNR and Adjusted PPNR are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is included in the earnings release fur
Slide 11: Profitability Ratios
11 Profitability Ratios *Adjusted ROAA, Adjusted ROATCE, PPNR/Average Assets, Adjusted PPNR/Average Assets and Adjusted Efficiency Ratio are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is included in the earnings release furnished to the SEC on the same Form
Slide 12: Net Interest Margin (FTE), Loan Yield and Cost of Deposits
12 Net Interest Margin (FTE), Loan Yield and Cost of Deposits 3.66% 3.45% 3.36% 3.33% 3.30% 3.63% 3.43% 3.35% 3.29% 3.28% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Net Interest Margin (FTE) / Adjusted Net Interest Margin (FTE)(non-GAAP)* Net Interest Margin Adjusted Net Interest Margin (FTE)(non-GAAP)
Slide 13: Noninterest Income / Total Revenue
13 Noninterest Income / Total Revenue Service Charges 25% Fees and Commissions 10% Insurance 7% Wealth Management 14% Mortgage Banking 27% Other 17% Noninterest Income Mix - 1Q 2024 • Noninterest income increased $21.0 million on a linked quarter basis. In the fourth quarter of 2023, the Company rec
Slide 14: Noninterest Expense
14 Noninterest Expense Salaries and employee benefits 63% Data processing 4% Net occupancy and equipment 10% Advertising and public relations 4% Other 19% Mix - 1Q 2024($ in thousands) 4Q23 1Q24 Change Salaries and employee benefits 71,841$ 71,470$ (371)$ Data processing 3,971 3,807 (164) Net occupa
Slide 15: Appendix
T Understanding You. CORPORATION Appendix
Slide 16: Available Liquidity and Uninsured Deposits
16 Available Liquidity and Uninsured Deposits Note: As of March 31, 2024; dollars in billions (1) Approximately $171 million of the unencumbered securities are placed at the Fed (2) Does not include loans participated to REITs that could be moved to Renasant Bank and pledged for additional capacity
Slide 17: Securities Composition (at Amortized Cost)
17 Securities Composition (at Amortized Cost) Agency MBS 29% Agency CMO 38% Agency CMBS 10% Municipal 15% SBA 5% Other 3% • Represents 11.3% of total assets • Duration of 4.9 years • 61% of portfolio HTM o 10% of HTM are CRA investments o 24% of HTM are Municipals • Unrealized losses in AOCI on secu
Slide 18: Non-Owner Occupied CRE – Term and Office
18 Non-Owner Occupied CRE – Term* and Office Non-Owner Occupied CRE – Term* 17% 9% 10% 21% 8% 9% 17% 9% Warehouse/Industrial Hotels Self Storage Multi-family Medical Office Office (non-medical) Retail Senior Housing • 31.8% of total loans • Non-performing loans of 0.24% • 30-89 days past due of 0.08
Slide 19: Construction
19 Construction Note: As of March 31, 2024; LTV is calculated using the most recent appraisal available. 22% 5% 37% 6% 6% 10% 11% 3% 1-4 Family Commercial Owner-Occupied Multi-family Office Retail Self Storage Warehouse / Industrial Hotels Composition Highlights • 9.9% of total loans • 0.02% past du
Slide 20: ACL / Loss Absorption
20 ACL / Loss Absorption ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans Commercial, Financial, Agricultural 43,980$ 2.35 45,922$ 2.46 Lease Financing Receivables 2,515 2.17 2,554 2.38 Real Estate - 1-4 Family Mortgage 47,270 1.37 47,532 1.39 Real Estate - Commercial Mortgage 77,048
Slide 21: Mortgage Banking
21 Mortgage Banking MixMortgage Banking Income Gain on sale margin* *Gain on sale margin excludes pipeline fair value adjustments and buyback reserve activity included in “Gain on sales of loans, net” in the table above ($ in thousands) 1Q23 4Q23 1Q24 Gain on sales of loans, net 4,770$ 1,860$ 4,535$
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