Slide 1: Investor Presentation
Investor Presentation August 26, 2020
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 of Renasant Corporation
Overview of Renasant Corporation
Slide 4: Experienced Leadership Team
Experienced Leadership Team Edward Robinson • Chairman of the Board since 2005 McGraw Executive Chairman • CEO and President (2000-2018) Age: 73 • General Counsel prior to becoming President and CEO Years of Experience: 46 Years at Renasant: 46 C. Mitchell Waycaster • President since 2016 and CEO si
Slide 5: Overview of Renasant Corporation
Overview of Renasant Corporation Company Overview Over 200 banking, lending, wealth management and insurance offices Name: Renasant Corporation Headquarter: Tupelo, MS Ticker: Nasdaq: RNST Assets: $14.9 Loans: 11.0 Deposits: 11.8 Equity: 2.1 Loans and Deposits by Region Loans Deposits 19% MS 14% MS
Slide 6: Investment Highlights
Investment Highlights • Building on a 116 year history • Over 200 banking, lending, mortgage, wealth and insurance offices in vibrant markets across 5 Southeastern states • Experienced and tenured team attracting new talent • Proven track record of successful acquisitions and de novo expansion • Pro
Slide 7: Market Expansion Since 2010
Market Expansion Since 2010 American Trust First M&F KeyWorth Bank Brand Group Bank (1) Corporation Atlanta, GA Holdings, Inc. Roswell, GA Kosciusko, MS Lawrenceville, GA Crescent Acquisitions Bank and Trust (1) Heritage Metropolitan Jasper, GA Financial RBC (USA) BancGroup, Inc. Trust Unit Group, I
Slide 8: Diverse Revenue Streams
Diverse Revenue Streams Community More than 170 branch locations across a diverse YTD Total Revenue geographic footprint, which includes both Banks metropolitan and rural areas June 30, 2020(1) 2% More than 100 mortgage producers operating out of our branch network as well as locations Mortgage excl
Slide 9: COVID-19 Response
[NRENASANT CORPORATION COVID-19 Response
Slide 10: Pandemic Response
Pandemic Response Stay Safe, Stay Strong, Stay Consistent, and Stay Connected • In early March the Company activated its Pandemic Planning Committee, which has developed and refined operational changes in response to the pandemic. These changes include: Team Members Customers • Providing special ben
Slide 11: Financial Highlights
[NRENASANT CORPORATION Financial Highlights
Slide 12: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth Total Assets Total Loans excluding Loans Held for Sale $16 ,000 $14 ,000 $12 ,000 $10,997 $12 ,000 $12 ,000 $10 ,000 $1,281 PPP 1 $10 ,000 $10 ,000 $8,0 00 $8, 000 $14,897 $8,0 00 $13,401 $6,0 00 $6, 000 $12,935 $6,0 00 $9,083 $9,690 $9,716 $9,830 $7,620 $8,700 $4,0 0
Slide 13: Profitability
Profitability Net Income & Pre-Provision Net Revenue(1) Net Interest Income and Margin(1) 2.02% 1.89% 4.22% 4.16% 4.16% 4.08% 1.81% 1.75% 1.58% 3.56% $209.7 $224.9 3.88% 3.80% $192.5 3.76% 3.78% 3.51% $151.9 $110.6 $402.4 $450.0 $308.0 $345.7 $215.8 $90.9 $92.2 $146.9 $167.6 $22.1 2016 2017 2018 201
Slide 14: Strong Core Deposit Franchise
Strong Core Deposit Franchise Deposits as of June 30, 2020 ($11.8 Billion) Cost of Funds 2019 1Q20 2Q20 Noninterest-bearing demand - - - Interest-bearing demand 0.86% 0.75% 0.43% 4% 12% Savings 0.19% 0.15% 0.09% Time deposits 1.71% 1.71% 1.62% 32% Borrowed funds 4.17% 2.46% 1.73% 7% Total Cost of fu
Slide 15: Securities Portfolio
Securities Portfolio Composition Highlights • Market value of $1.3B • Taxable equivalent yield of 2.48% 3% • Average life of 4.1 years 3% • Unrealized gain of $39.6M • 77% of securities portfolio is U.S. government agency or Treasury issued 21% • 96% of the municipal portfolio is rated(1) AA or bett
Slide 16: Liquidity
Liquidity Sources of Liquidity as of June 30, 2020 ($ in Millions) Outstanding / Remaining Usage Available Pledged Availability Percentage Total FHLB Line $ 4,421 $ 1,088 $ 3,333 25 % Brokered Deposits* 2,374 1 2,373 0 Pledgeable Securities 1,013 617 396 61 Unsecured Bank Line 150 - 150 0 Secured Ba
Slide 17: Interest Rate Sensitivity
Interest Rate Sensitivity • The following table summarizes the forecasted impact on net interest income given an immediate change in interest rates at the specified levels based on forecasted assumptions of prepayment speeds, nominal interest rates and loan and deposit repricing rates • Assumptions
Slide 18: Capital Position
Capital Position Regulatory Capital as of June 30, 2020 ($ in millions) Capital Highlights • Stock buyback program suspended in March 2020 • Elected to take advantage of transitional relief offered by regulators to delay for two years the estimated impact of CECL on regulatory capital, followed by a
Slide 19: Capital Ratios
Capital Ratios Tier 1 Leverage Ratio Tangible Common Equity / Tangible Assets(2) (2) $0 16. 00% $0 14. 00% 10.59% $0 10.18% 10.11% 10.37% 12. 00% 9.12% (1) 9.56% 9.25% $0 10. 00% 9.00% 8.92% $0 7.97% (3) 8.0 0% $0 6.0 0% $0 4.0% 4.0 0% $0 2.0 0% $0 0.0 0% 2016 2017 2018 2019 2Q 2020 2016 2017 2018 2
Slide 20: Capital Ratios
Capital Ratios Common Equity Tier 1 Ratio Tier 1 Risk-Based Capital Ratio $0 $0 $0 $0 $0 $0 12.86% 12.39% 12.14% 12.10% 11.69% $0 $0 11.47% 11.34% 11.05% 11.12% $0 10.69% $0 $0 $0 $0 $0 8.5% $0 7.0% $0 $0 $0 $0 $0 $0 $0 2016 2017 2018 2019 2Q 2020 2016 2017 2018 2019 2Q 2020 Total Risk-Based Capital
Slide 21: Loan Portfolio and Credit
[NRENASANT CORPORATION Loan Portfolio and Credit
Slide 22: Total Portfolio Loans
Total Portfolio Loans Loan Portfolio Highlights as of June 30, 2020 At June 30, 2020, loans held for investment totaled $11.0 billion • Legacy of proactive portfolio management and conservative credit underwriting • Granular loan portfolio: o Average loan size is approximately $110,000 Consumer o We
Slide 23: CARES Act and Paycheck Protection Program (PPP)
CARES Act and Paycheck Protection Program (PPP) • Our approach: • Lenders were hands-on with the customers – not an online application portal • Credit was included in approval process to verify PPP underwriting requirements were satisfied • Utilized technology to improve efficiency • Offered to clie
Slide 24: Historically Strong Credit Culture
Historically Strong Credit Culture Credit Culture: • Proven track record of superior asset quality metrics • Centrally managed credit process • Geographically dispersed credit officers who work closely with the lenders to make credit decisions Portfolio Management: • Collaborative loan monitoring pr
Slide 25: Continuing Credit Enhancement
Continuing Credit Enhancement Deferral Programs: • In mid-March 2020, offered a 90-day deferral of principal and interest to consumers and commercial customers who were current on loan payments and current on taxes and insurance • In June 2020, rolled out a phase 2 commercial loan deferral program w
Slide 26: Commercial Loan Portfolio
Commercial Loan Portfolio Total Commercial Loans as of June 30, 2020 ($6.35 Billion)(1) Commercial Portfolio Highlights • Granular commercial portfolio Industries < 3% of Construction, focused on relationship-based Portfolio, $1,224M, $375M, 6% Retail Trade, lending 19% $811M, 13% • Risk diversified
Slide 27: Loan Deferral Program
Loan Deferral Program • As of June 30, 2020, approximately 21.5% of total loan portfolio, excluding PPP loans, under the deferral program • As of August 21, 2020, approximately 8.7% of total loan portfolio, excluding PPP loans, under the deferral program • Requires relationship manager to perform en
Slide 28: COVID-19 Impacted Portfolios
COVID-19 Impacted Portfolios • Early identification of portfolios that may be more sensitive to COVID-19 related impact • Proactively reached out to clients to understand the potential impact on their business activities • Identified Hospitality, Restaurant, Entertainment and Retail Trade as more se
Slide 29: Impacted Industries
Impacted Industries Hospitality Portfolio by Flag(1) Entertainment Portfolio by Type(1) Other Independent National 9% Golf Flags Other Courses 8% Marriott 24% 25% Wyndham 32% 3% Holiday Inn (IHG) 14% Fitness Centers Theaters 16% 12% Sports Marinas Facilities/Instruction Hilton 19% 4% 34% • Entertain
Slide 30: Impacted Industries, cont.
Impacted Industries, cont. Restaurant Portfolio by Type(1) Retail Trade Portfolio by Type(1) Other Other Auto Dealers 3% 15% 13% Full-Service 45% Single Tenant 19% Grocery Limited- Anchored Service Unanchored 4% 52% Multi- Tenant Other 33% Anchored 16% • Restaurant represents 2.7% of total loans • R
Slide 31: Asset Quality Metrics
Asset Quality Metrics Loans 30-89 Days Past Due/ Classified Loans/Total Loans(1) Total Loans(1) $300,000 4.00% $100,000 2.00% $250,000 3.00% $75,000 1.50% $200,000 1.67% $150,000 2.00% $50,000 1.00% $100,000 $25,000 1.00% 0.10% 0.50% $50,000 $- 0.00% $- 0.00% ($ in thousands) 1Q18 1Q18 2Q18 3Q18 4Q1
Slide 32: Asset Quality Metrics, cont.
Asset Quality Metrics, cont. 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 1.50% $10,000 0.20% 0.39% $50,000 1.00% $5,000 0.07% 0.10% $25,000 0.50% $- 0.00% $- 0.00% ($ in thousands) ($ in thousands) 2Q18 1Q18 1
Slide 33: Asset Quality Metrics, cont.
Asset Quality Metrics, cont. Allowance/Total Loans Allowance/Nonperforming Loans $150,000 2.00% $150,000 500% 1.50% 330% $125,000 $125,000 400% 1.50% $100,000 $100,000 300% $75,000 1.00% $75,000 200% $50,000 $50,000 0.50% $25,000 $25,000 100% $- 0.00% $- 0% ($ in thousands) ($ in thousands) 1Q18 2Q1
Slide 34: Current Expected Credit Losses
Current Expected Credit Losses CECL Day 1 Transition 12/31/2019 Incurred Loss 1/1/2020 CECL Adoption ALLL as a % of ACL as a % of ($ in thousands) ALLL Loans ACL Loans Commercial, Financial, Agricultural $ 10,658 0.78 $ 22,009 1.61 Lease Financing Receivables 910 1.11 1,431 1.75 Real Estate - 1-4 Fa
Slide 35: CECL 2020 Reserve Build
CECL 2020 Reserve Build 1/1/2020 CECL Adoption 3/31/2020 CECL 6/30/2020 CECL ACL as a % of ACL as a % of ACL as a % of ($ in thousands) ACL Loans ACL Loans ACL Loans SBA Paycheck Protection Program - - - - $ - - Commercial, Financial, Agricultural $ 22,009 1.61 $ 25,937 1.82 30,685 2.26 Lease Financ
Slide 36: Appendix
[NRENASANT CORPORATION Appendix
Slide 37: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Return on Average Assets $ in thousands 2016 2017 2018 2019 YTD 2020 Net income (GAAP) $ 90,930 $ 92,188 $ 146,920 $ 167,596 $ 22,138 Income taxes 44,847 67,681 41,727 48,091 5,410 Provision for credit losses (including unfunded commitments) 7,530 7,550 6,810 7
Slide 38: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Net Interest Margin $ in thousands 2016 2017 2018 2019 YTD 2020 Net interest income (FTE) (GAAP) $ 308,002 $ 345,743 $ 402,426 $ 449,986 $ 215,773 Less: Net interest income collected on problem loans 4,581 8,807 2,861 4,042 602 Accretable yield recognized on pu
Slide 39: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Efficiency Ratio $ in thousands 2016 2017 2018 2019 YTD 2020 Net interest income (FTE) (GAAP) $ 308,002 $ 345,743 $ 402,426 $ 449,986 $ 215,773 Total noninterest income (GAAP) 137,415 132,140 143,961 153,254 101,740 Securities gains (losses) 1,186 148 (16) 348
Slide 40: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible Common Equity $ in thousands 2016 2017 2018 2019 YTD 2020 Actual shareholder's equity (GAAP) $ 1,232,883 $ 1,514,983 $ 2,043,913 $ 2,125,689 $ 2,082,946 Intangibles 494,608 635,556 977,793 976,943 973,214 Actual tangible shareholders' equity (non-GAAP)