Renasant Corporation · NYSE:RNST
Renasant — IPO Roadshow (August 2016)
42 slides from Renasant's IPO roadshow presentation, Aug 15, 2016
Slide 1: Subordinated Note Issuance August 2016
Subordinated Note Issuance August 2016 Issuer Free Writing Prospectus Dated August 15, 2016 Filed pursuant to Rule 433 Registration Statement No. 333-206966
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 that are subject to risks and uncertainties. Congress passed the Private Securities Litigation Reform Act of 1995 in an effort to enco
Slide 3: Registration Statement and Non-GAAP Financial Measures
Registration Statement The Company has filed a registration statement (File No. 333-206966) (including a base prospectus) and related preliminary prospectus supplement dated August 15, 2016 with the SEC for the offering to which this communication relates. Before you invest, you should read the pros
Slide 4: Terms of Proposed Offering
Terms of Proposed Offering Issuer: Renasant Corporation (NASDAQ: RNST) Security: [ ]% Fixed-to- Floating Rate Subordinated Notes Principal Amount: $75 million Rating: BBB by Kroll Bond Rating Agency A rating reflects only the view of a rating agency, and it is not a recommendation to buy, sell or ho
Slide 5: Corporate Overview
Corporate Overview
Slide 6: Renasant Corporation
Parent of Renasant Bank, founded in 1904 $8.5 billion in total assets as of June 30, 2016 Headquartered in Tupelo, MS NASDAQ Global Select: RNST More than 175 banking, mortgage, financial services and insurance offices in the 5 southeastern states of Alabama, Florida, Georgia, Mississippi and Tennes
Slide 7: Renasant Management Team
E. Robinson “Robin” McGraw Chairman and CEO C. Mitchell Waycaster President and COO Kevin D. Chapman Executive Vice President and CFO Executive Management Regional Presidents J. Scott Cochran (President – Western) R. Rick Hart (President – Northern) Michael D. Ross Chief Commercial Officer (Presiden
Slide 8: Current Footprint
More than 175 banking, mortgage, financial services and insurance offices Northern Region Tennessee Eastern Region Georgia Central Region Alabama & Florida Western Region Mississippi Current Footprint * As of June 30, 2016
Slide 9: Market Expansion Experience Since 2010
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 Roswell, GA Assets:
Slide 10: Financial Highlights
Financial Highlights
Slide 11: Profitability: Net Income
Profitability Net Income ex. Merger Expenses* $ in thousands * Excludes after-tax impact of merger expenses. Net Income $ in thousands
Slide 12: Profitability: ROATA and ROATE
Profitability Note: Data excludes merger expenses * See Appendix for reconciliation of Non-GAAP disclosure to GAAP Return on Average Tangible Assets* Return on Average Tangible Equity*
Slide 13: Total Assets
Total Assets $8,530 2011 2012 2013 2014 2015 1Q16 2Q16 (in millions) mmmTotal Assets ==Deposits Loans
Slide 14: Transition to Core Funding
Less Reliance on Borrowed Funds - 28% at year end 2008 declined to 8% at the end of 2Q16 Improved Deposit Mix – Non-interest bearing deposits represent 22% of deposits at the end of 2Q16 as compared to 13% at year end 2008 Non Time Deposit Mix 6/30/16 Personal51% Commercial 33% Public16% Top 5 marke
Slide 15: Net Interest Margin & Efficiency Ratio
* Excludes certain items from income and expense that management considers to be non-recurring. See Appendix for reconciliation of Non-GAAP disclosure to GAAP Net Interest Margin & Efficiency Ratio
Slide 16: Non Interest Income
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 Expansions within our de novo operations Expansion of the Mortgage Division within new markets Fees der
Slide 17: Complementary Business Lines
Wealth Management Total Revenue: $5.8 million Renasant Insurance Total Revenue: $4.1 million 8 offices in Mississippi 26 Agents 28 Customer Service Agents Mortgage Total Revenue: $25.3 million 92 producers 30 Branch Offices 14 Mortgage Offices 2016 June YTD Revenue Mix Assets Under Management Trust
Slide 18: Mortgage Banking Division
Total Production Loan Purpose Mix Volume $2.3 billion Units 10,906 Average Size$215,070 Average Rate 3.88% Average LTV 83% Average FICO 733 Channel Mix Product Mix Note: Production Statistics Since HBOS Merger (July 2015-June 2016) Mortgage Banking Division
Slide 19: Loans and Asset Quality
Loans and Asset Quality
Slide 20: Total Portfolio Loans
*Covered loans are subject to loss-share agreements with FDIC 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Not Acquired $2,242 $2,573 $2,886 $3,268 $3,274 $3,408 $3,607 $3,830 $4,075 $4,292 Acquired Covered* $339 $237 $182 $143 $126 $121 $101 $93 $45 $42 Acquired Not Covered - - $813 $577 $554
Slide 21: Loan Portfolio Mix and Diversification
At June 30, 2016, loans totaled $5.97B 72% Not Acquired 27% Acquired Not Covered 1% Acquired Covered Loan Mix Average Loan Size Weighted Average Rate Weighted Average Maturity 1-4 Family $ 85 4.28% 141 Non Owner Occupied 672 4.17% 54 Owner Occupied 336 4.49% 57 Commercial & Industrial 97 4.33% 33 Co
Slide 22: ADC and CRE Concentration Guidelines
Acquisition, Development & Construction (ADC) and Commercial Real Estate (CRE) CRE Concentration Guidelines
Slide 23: Non-performing Assets
As a percentage of total assets 83 Not Acquired Acquired Covered AcquiredNot Covered NPL’s $12.0M $4.2M $27.0M ORE $9.6M $2.6M $17.1M Total NPA’s $21.6M $6.8M $44.1M 22 NPA’s Breakdown as of 6/30/2016 Non-performing Assets
Slide 24: Allowance for Loan Losses
*Ratios exclude loans and assets acquired in connection with the recent acquisitions or loss share transactions Proactive in Providing Reserves for Problem Credit Resolution Allowance for Loan Losses as Percentage of Non-Acquired Loans* 2010 2011 2012 2013 2014 2015 1Q16 2Q16 2.07% 1.98% 1.72% 1.65%
Slide 25: Capital and Liquidity
Capital and Liquidity
Slide 26: Strong Capital Position
Maintained dividend throughout economic downturn Regulatory capital ratios are above the minimum for well-capitalized classification Capital level positions the Company for future growth and geographic expansion Did not participate in the TARP program Ratio 2011 2012 2013 2014 2015 1Q16 2Q16 Well Ca
Slide 27: Loan to Deposit Ratio
Loan to Deposit Ratio 82.4% 81.2% 80.2% 72.8% 75.6% 2010 2011 2012 2013 2014 87.1% 86.6% 89.0% 2015 «= 1Q16 = 2Q16
Slide 28: Investment Portfolio
As of June 30, 2016 ($ in 000’s) Investment Portfolio Investment Portfolio As of June 30, 2016 Mix % Book Market Unrealized Gain / (Loss) TE Yield Avg. Life in Years Available for Sale (AFS) Agency 0 $2,080 $2,220 $140 3.3500000000000002E-2 3.2 MBS/CMO 0.59 ,625,830 ,635,887 10,057 2.220000000000000
Slide 29: Interest Rate Risk – Earnings at Risk
Variance in Projected Net Interest Income (NII) vs. Projected NII under Flat Rates as of June 30, 2016 Interest Rate Risk – Earnings at Risk
Slide 30: Double Leverage and Interest Coverage
* Assumes $75 million gross subordinated note offering with 5.25% coupon Double Leverage and Interest Coverage Historical and Pro Forma Interest Coverage (Dollars in Thousands) For the Year Ended December 31 Pro Forma 2011 2012 2013 2014 2015 2Q16 Equity Investment in Subsidiaries $,552,524 $,563,34
Slide 31: Conclusion
112-year-old financial services institution growing and changing with the times More than 175 banking, mortgage, financial services and insurance offices in vibrant markets across 5 southeastern states Profitable with consistent dividend throughout the financial crisis Proven record of successful ac
Slide 32: Appendix
Appendix
Slide 33: Management Biographies
Chairman & CEO E. Robinson “Robin” McGraw Mr. McGraw has served as Chief Executive Officer of Renasant Corporation and Renasant Bank since 2000. Since June 2005, Mr. McGraw has also served as Chairman of the Board of Directors of the Company and the Bank. Mr. McGraw served as Executive Vice Presiden
Slide 34: Mississippi Deposit Market Share
Deposits Market Rank Institution ($mm) Share Branches 1 Regions Financial Corp. $7,023 14.2 % 138 2 Trustmark Corp. 6,864 13.9 129 3 BancorpSouth Inc. 5,295 10.7 98 4 Renasant Corp. 2,879 5.8 70 5 Hancock Holding Co. 2,856 5.8 39 6 BancPlus Corp. 2,049 4.1 59 7 Community Bancshares of MS, Inc. 2,020
Slide 35: Georgia Deposit Market Share
Entered the North GA market through two FDIC loss share transactions in 2010 and 2011 12 full-service locations Expanded services include mortgage and wealth management personnel Grew GA presence by completing acquisition of Heritage Financial Group, Inc, which closed July 1, 2015 ($1.9 billion in a
Slide 36: Alabama Deposit Market Share
Birmingham leads the state in the health care industry with an annual payroll of approximately $2.9 billion, followed by Huntsville with $998 million Honda, Hyundai, Mercedes-Benz increasingly large presence Merger with Heritage Financial Group, Inc. which closed July 1, 2015, added approximately $9
Slide 37: Our Tennessee Operations
Our Tennessee Operations The Knoxville/Maryville MSA location opened in late Q2 ‘12 East Tennessee operations currently have 4 full-service branches, $238 million in loans and $106 million in deposits New lending teams added in both Memphis and Nashville during 2013 New Healthcare Lending Group adde
Slide 38: Florida Deposit Market Share
Entered the Florida market through the acquisition of Heritage Financial Group, Inc., which closed on July 1, 2015 Moved into FL with 8 full-services branches along I-75 Florida has the 19th largest economy in the world, if it were a country Publix Super Markets, AutoNation, Office Depot, CSX Corpor
Slide 39: Tangible Common Equity Reconciliation
Tangible Common Equity Reconciliation of Non-GAAP Disclosures $ in thousands 2011 2012 2013 2014 2015 1Q16 2Q16 Actual shareholders' equity (GAAP) $,487,202 $,498,208 $,665,652 $,711,651 $1,036,818 $1,053,178 $1,124,256 Intangibles ,192,326 ,190,925 ,304,330 ,297,330 ,474,682 ,476,539 ,497,917 Actua
Slide 40: Return on Tangible Assets and Equity Reconciliation
Reconciliation of Non-GAAP Disclosures Return on Tangible Assets Return on Average Tangible Equity $ in thousands 2011 2012 2013 2014 2015 YTD June 2016 After Tax Merger Expense $1,019.4924999999999 $0 $3,951.9375 $428.54500000000002 $7,470 $2,644 Net Income 25,632 26,637 33,487 59,582 68,014 44,116
Slide 41: Efficiency Ratio Reconciliation
Reconciliation of Non-GAAP Disclosures Efficiency Ratio $ in thousands 2011 2012 2013 2014 2015 YTD June 2016 1Q16 2Q16 Net Interest income (FTE) $,135,123 $,139,261 $,162,957 $,209,319 $,248,613 $,150,745 71,804 78,932 Total noninterest income 64,699 68,711 71,891 80,509 ,108,270 68,888 33,302 35,5
Slide 42: Efficiency Ratio (Excluding Mortgage) Reconciliation
Efficiency Ratio (Excluding Mortgage) Reconciliation of Non-GAAP Disclosures Renasant Corp. $ in thousands 2011 2012 2012 2014 2015 YTD 2016 1Q16 2Q16 Net Interest income (FTE) ,135,123 ,139,261 ,162,957 ,209,319 ,248,613 ,150,736 71,804 78,932 Total noninterest income 64,699 68,711 71,891 80,509 ,1