Slide 1: Third Quarter 2024 Investor Presentation
Third Quarter 2024 Investor Presentation
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: Snapshot
Snapshot Assets: $18.0 billion Loans: 12.6 Deposits: 14.5 Equity: 2.7 Loans and Deposits by State MS 19% AL 28% FL 8% Other 1% GA 29% TN 15% Loans MS 41% AL 15% FL 3% GA 30% TN 11% Deposits Footprint *Republic Business Credit operates on a nationwide basis. Locations in California, Illinois and Texa
Slide 4: Third quarter highlights
• Net income of $72.5 million with diluted EPS of $1.18 and adjusted EPS (non-GAAP)(1) of $0.70 • Net interest margin increased 5 basis points to 3.36% on a linked quarter basis • Loans increased $22.9 million, or 0.7% annualized • Deposits increased $254.5 million, which includes a $31.8 million re
Slide 5: Balance Sheet
Balance Sheet $14,157 $14,077 $14,237 $14,255 $14,510 $13 ,200 $13 ,400 $13 ,600 $13 ,800 $14 ,000 $14 ,200 $14 ,400 $14 ,600 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Deposits $12,168 $12,351 $12,501 $12,605 $12,628 $11 ,900 $12 ,000 $12 ,100 $12 ,200 $12 ,300 $12 ,400 $12 ,500 $12 ,600 $12 ,700 3Q 2
Slide 6: Core Deposit Funding
6 Core Deposit Funding Diversification Granularity • Average deposit account balance is $31 thousand; commercial and consumer deposit accounts, excluding time deposit accounts, averaged approximately $80 thousand and $13 thousand, respectively • Top 20 depositors, excluding public funds, comprise 4.
Slide 7: Strong Liquidity Position
7 Strong Liquidity Position Cash and Securities to Total Assets 16.9% 17.0% 16.2% 15.9% 17.8% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Loans to Deposits 86% 88% 88% 88% 87% $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Average Interest Earning
Slide 8: Capital
8 Capital 13.00% 13.23% 13.39% 13.45% 14.80% 7.55% 7.87% 8.04% 8.16% 9.76% $0 $0 $0 $0 $0 $0 $0 $0 $0 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Equity to Assets / Tangible Common Equity Ratio Shareholders' equity to assets Tangible common equity ratio (non-GAAP)* $39.78 $40.92 $41.25 $41.77 $41.82 $21
Slide 9: Asset Quality
9 Asset Quality 2.27% 2.16% 2.76% 2.62% 3.02% 2.00% 2.50% 3.00% 3.50% 4.00% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Criticized Loans/Total Loans 0.11% 0.44% 0.48% 0.23% 0.14% 0.0% 0.5% 1.0% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Loans 30-89 Days Past Due/ Total Loans 0.06% 0.06% 0.01% 0.18% 0.02% 0
Slide 10: Profitability
10 Profitability $0.74 $0.50 $0.70 $0.69 $1.18 $0.74 $0.76 $0.65 $0.69 $0.70 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Diluted EPS / Adjusted Diluted EPS (non-GAAP)* Diluted EPS (GAAP) Adjusted Diluted EPS (non-GAAP)* $130.1 $128.6 $125.9 $127.6 $133.6$129.7 $127.2 $124.9 $126.8 $131.8 3Q 2023 4Q 2023
Slide 11: Profitability Ratios
11 Profitability Ratios 7.44% 4.93% 6.85% 6.68% 11.29% 13.95% 13.94% 11.58% 12.04% 11.26% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 ROAE / Adjusted ROTCE ROAE (GAAP) ROTCE (Adjusted) (non-GAAP)* 0.96% 0.65% 0.92% 0.90% 1.63% 0.96% 0.99% 0.86% 0.90% 0.97% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 ROAA /
Slide 12: Net Interest Margin (FTE), Loan Yield and Cost of Deposits
12 Net Interest Margin (FTE), Loan Yield and Cost of Deposits 3.36% 3.33% 3.30% 3.31% 3.36% 3.35% 3.29% 3.28% 3.29% 3.32% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 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
Noninterest Income / Total Revenue $38.2 $20.4 $41.4 $38.8 $89.3 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Noninterest Income 79% 3% 7% 11% YTD Total Revenue(1) Community Banking Wealth Management Mortgage Insurance • Noninterest income increased $50.5 million on a linked quarter basis primarily due t
Slide 14: Noninterest Expense
14 Noninterest Expense ($ in thousands) 2Q24 3Q24 Change Salaries and employee benefits 70,731$ 71,307$ 576$ Data processing 3,945 4,133 188 Net occupancy and equipment 11,844 11,415 (429) Advertising and public relations 3,807 3,677 (130) Merger and conversion expenses - 11,273 11,273 Other 21,649
Slide 15: Appendix
Appendix
Slide 16: Available Liquidity and Uninsured Deposits
16 Available Liquidity and Uninsured Deposits $8.9 $4.3 Available sources Uninsured and uncollateralized deposits Uninsured Deposits Uncollateralized 4.3$ 29.7 % Collateralized public funds 2.1 14.5 Total 6.4$ 44.2 % % of Total Deposits Internal Sources Cash and cash equivalents 1.3$ Unencumbered se
Slide 17: Securities Composition (at Amortized Cost)
17 Securities Composition (at Amortized Cost) Highlights • Represents 10.7% of total assets • Duration of 4.7 years • 57% of portfolio HTM • 10.6% of HTM are CRA investments • 24.8% of HTM are Municipals • Unrealized losses in AOCI on securities totaled $182.4 million ($137.0 million, net of tax); u
Slide 18: Non-Owner Occupied CRE – Term
18 Non-Owner Occupied CRE – Term* Non-Owner Occupied CRE – Term* Note: As of September 30, 2024. LTV is calculated using the most recent appraisal available. *Excludes construction 18% 9% 10% 21% 8% 8% 16% 8% 2% Warehouse/Industrial Hotels Self Storage Multi-family Medical Office Office (non-medical
Slide 19: Construction Composition
19 Construction Composition Note: As of September 30, 2024; LTV is calculated using the most recent appraisal available. Highlights 22% 8% 37% 6% 3% 9% 9% 4% 2% 1-4 Family Commercial Owner-Occupied Multi-family Office Retail Self Storage Warehouse / Industrial Hotels Senior Housing Average Loan Size
Slide 20: ACL / Loss Absorption
Forward-Looking Statements 20 ACL / Loss Absorption ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans Commercial, Financial, Agricultural 44,952$ 2.43 43,033$ 2.38 Lease Financing Receivables 2,515 2.45 2,384 2.43 Real Estate - 1-4 Family Mortgage 47,344 1.38 47,274 1.37 Real Estate -
Slide 21: Mortgage Banking
21 Mortgage Banking Mortgage Banking Income ($ in thousands) 3Q23 2Q24 3Q24 Gain on sales of loans, net 3,297$ 5,199$ 4,499$ Fees, net 2,376 2,866 2,646 Mortgage servicing income, net 1,860 1,633 1,302 Mortgage banking income, net 7,533$ 9,698$ 8,447$ $494.4 $342.5 $444.3 $560.3 $543.6 $- $100 $200
Slide 22: Renasant Acquisition of The First
• Creates a leading Southeast bank with ~$25 billion in combined assets • Familiarity and culture mitigate risk • Strengthens demographic profile and adds density Renasant Acquisition of The First Note: Data as of June 30, 2024. Strong Strategic Partner • Granular and diverse core deposit base • Str
Slide 23: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non- GAAP Disclosures
Slide 24: Pre-Provision Net Revenue and Adjusted Pre-Provision Net Revenue
Forward-Looking Statements 24 Reconciliation of Non-GAAP Disclosures Pre-Provision Net Revenue and Adjusted Pre-Provision Net Revenue $ in thousands 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Net income (GAAP) 41,833$ 28,124$ 39,409$ 38,846$ 72,455$ Income taxes 10,766 3,787 9,912 9,666 24,924 Provisio
Slide 25: PPNR/Average Assets and Adjusted PPNR/Average Assets
25 Reconciliation of Non-GAAP Disclosures Pre-Provision Net Revenue/Average Assets and Adjusted Pre-Provision Net Revenue/Average Assets $ in thousands 3Q 2023 4Q 2023 1Q 2024 Net income (GAAP) 41,833$ 28,124$ 39,409$ 38,846$ 72,455$ Merger and conversion expense - - - - 11,273 Gain on extinguishmen
Slide 26: Adjusted Diluted Earnings Per Share
Forward-Looking Statements 26 Reconciliation of Non-GAAP Disclosures Adjusted Diluted Earnings Per Share $ in thousands 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Net income (GAAP) 41,833$ 28,124$ 39,409$ 38,846$ 72,455$ Merger and conversion expense - - - - 11,273 Gain on extinguishment of debt - (620
Slide 27: Return on Average Tangible Common Equity (Adjusted)
27 Reconciliation of Non-GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) $ in thousands 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Net income (GAAP) 41,833$ 28,124$ 39,409$ 38,846$ 72,455$ Merger and conversion expense - - - - 11,273 Gain on extinguishment of debt - (620) (56) - -
Slide 28: Adjusted Net Interest Income (FTE) and Adjusted Net Interest Margin
Forward-Looking Statements 28 Reconciliation of Non-GAAP Disclosures Adjusted Net Interest Income (FTE) and Adjusted Net Interest Margin $ in thousands 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Net interest income (FTE) (GAAP) 130,131$ 128,595$ 125,850$ 127,598$ 133,576$ Less: Net interest income coll
Slide 29: Adjusted Loan Yield
29 Reconciliation of Non-GAAP Disclosures Adjusted Loan Yield $ in thousands 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Loan interest income (FTE) (GAAP) 183,521$ 190,857$ 194,640$ 200,670$ 204,935$ Less: Net interest income collected on problem loans (820) 283 123 (146) 642 Accretable yield recognized
Slide 30: Adjusted Efficiency Ratio
Forward-Looking Statements 30 Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio $ in thousands 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Net interest income (FTE) (GAAP) 130,131$ 128,595$ 125,850$ 127,598$ 133,576$ Total noninterest income (GAAP) 38,200 20,356 41,381 38,762 89,299 Gain
Slide 31: Tangible Common Equity and Tangible Book Value
31 Reconciliation of Non-GAAP Disclosures Tangible Common Equity and Tangible Book Value $ in thousands 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Shareholders' equity (GAAP) 2,233,323$ 2,297,383$ 2,322,350$ 2,354,701$ 2,658,078$ Intangibles 1,011,735 1,010,460 1,009,248 1,008,062 1,004,136 Tangible sh
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