Slide 1: Third Quarter 2021 Earnings Call
Third Quarter 2021 Earnings Call
Slide 2: Forward-Looking Statements
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 Exch
Slide 3: Overview
Overview Note: Financial data as of September 30, 2021 (1) Total revenue is calculated as net interest income plus noninterest income. Company Snapshot Loans and Deposits by State Assets: $16.2 billion Loans: 10.0 Deposits: 13.3 Equity: 2.2 3 MS 23% AL 22% FL 6% GA 32% TN 17% Loans MS 37% AL 12%FL 3
Slide 4: Renasant Footprint
55 20 65 10 65 75 20 95 95 85 77 95 81 7524 40 59 40 FLORIDA Jackson Mobile Knoxville Chattanooga Greensboro Raleigh Columbia Nashville Winston-Salem Montgomery Birmingham Columbus Charlotte Jacksonville Memphis Orlando Huntsville Tallahassee Atlanta Wilmington Charleston Savannah Tupelo Greenville
Slide 5: Third Quarter Highlights
Third Quarter Highlights 5 • Net income of $40.1 million and diluted EPS of $0.71 • Repurchased approximately 612,000 shares of common stock for $21.3 million at a weighted average price of $34.82 • Mortgage production remained strong during the quarter with gain on sale margins declining from the s
Slide 6: Financial Condition
[NRENASANT CORPORATION Financial Condition
Slide 7: Total Assets
Total Assets 7 Note: Dollars in millions $14,809 $14,930 $15,623 $16,022 $16,156 $10 ,000 $11 ,000 $12 ,000 $13 ,000 $14 ,000 $15 ,000 $16 ,000 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021
Slide 8: Loans and Yields
Loans and Yields 8Note: Dollars in millions * Other loans are comprised of installment loans to individuals and lease financing, which both have historically constituted less than 5% of the total loan portfolio. ** Core Loan Yield is a non-GAAP financial measure. See slide 34 in the appendix for a d
Slide 9: Deposit Mix and Pricing
Deposit Mix and Pricing 9 Note: Dollars in millions $11,934 $12,059 $12,737 $13,115 $13,255 0.40% 0.33% 0.27% 0.24% 0.21% 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Noninterest-bearing Interest-bearing Savings Time Cost of deposits
Slide 10: Liquidity
Liquidity 10 Note: Dollars in millions $414 $633 $1,262 $1,605 $1,476 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Cash and Cash Equivalents $1,293 $1,343 $1,536 $2,164 $2,545 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Slide 11: Capital Position
Capital Position 11 Tier 1 $1,396 Tier 2 $317 Regulatory Capital as of September 30, 2021 • Repurchased $21.3 million of common stock during Q3 2021 • The Board approved a new $50 million stock repurchase program in October 2021 (the previous program having just expired); however, no current intent
Slide 12: Strong Capital Position
Strong Capital Position 12 * Tangible Common Equity is a non-GAAP financial measure. See slide 36 in the appendix for a description of the exclusions and a reconciliation of this non- GAAP financial measure to GAAP. Ratio 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Minimum to be Well Capitalized Tangibl
Slide 13: Asset Quality
[NRENASANT CORPORATION Asset Quality
Slide 14: Asset Quality
1.88% 0.00% 1.00% 2.00% 3.00% 4.00% $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Classified Loans/Total Loans* Classified Loans % of Total Loans, excl. PPP ($ in thousands) 0.15% 0.00% 0.50% 1.00% 1.50% 2.00% $- $25,000 $50,000 $75,000 $100,000 3Q 2
Slide 15: Asset Quality
0.38% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 NPAs/Total Assets* Nonperforming loans OREO % of Assets ($ in thousands) 0.04% 0.00% 0.20% 0.40% 0.60% 0.80% $- $5,000 $10,000 $15,000 $20,000 3Q 2020 4Q 2020
Slide 16: ACL Metrics
1.71% 1.60% 1.65% 1.70% 1.75% 1.80% 1.85% 1.90% $140,000 $150,000 $160,000 $170,000 $180,000 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Allowance/Total Loans* Allowance % of Total Loans, excl. PPP ($ in thousands) 300% 200% 250% 300% 350% 400% $140,000 $150,000 $160,000 $170,000 $180,000 3Q 2020 4Q 202
Slide 17: ACL Summary
ACL Summary ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans SBA Paycheck Protection Program - - - - Commercial, Financial, Agricultural 39,031$ 2.77 34,977$ 2.56 Lease Financing Receivables 1,624 2.14 1,570 1.98 Real Estate - 1-4 Family Mortgage 32,165 1.19 32,181 1.18 Real Estate -
Slide 18: Loss Absorption Capacity
Loss Absorption Capacity 18 * Allowance to total loans (excluding PPP) is a non-GAAP financial measure. See slide 37 in the appendix for a reconciliation of this non-GAAP financial measure to GAAP. ($ in thousands) Allowance for Credit Losses on Loans 170,038$ Reserve for Unfunded Commitments 20,335
Slide 19: Profitability
[NRENASANT CORPORATION Profitability
Slide 20: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 20 $30.0 $31.5 $57.9 $40.9 $40.1 $63.2 $57.4 $62.3 $48.8 $50.2 1.68% 1.53% 1.66% 1.24% 1.23% 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net Income P Adj. PPNR (non-GAAP)* Adj. PPNR /Avg. Assets (non-GAAP)* Note: Dollars in millions *Adjusted Pre-Provisio
Slide 21: Diluted Earnings per Share Reported and Adjusted
Diluted Earnings per Share Reported and Adjusted* 21 $.53 $.56 $1.02 $.72 $.71 $.53 $.68 $.85 $.73 $.71 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 EPS (GAAP) EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial measure. See slid
Slide 22: Profitability Ratios
Profitability Ratios 22 5.63% 5.88% 10.81% 7.40% 7.16% 10.81% 13.52% 16.68% 13.64% 13.13% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 ROE (GAAP) ROTCE (Adjusted) (non-GAAP)* * ROAA (Adjusted) and ROTCE (Adjusted) are non-GAAP financial mea
Slide 23: Core Net Interest Income & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 23 $107.9 $110.0 $111.3 $111.2 $105.0 3.29% 3.35% 3.37% 3.19% 2.93%3.23% 3.22% 3.12% 2.92% 2.76% 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Inte
Slide 24: Noninterest Income
Note: Dollars in thousands $70,928 $62,864 $81,037 $47,610 $50,755 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Service Charges Fees and Commissions Insurance Wealth Management Mortgage Banking Securities Gains Other Noninterest Income 24 Service Charges 18% Fees and Commissions 8% Insurance 6% Wealth Ma
Slide 25: Mortgage Banking
Mortgage Banking 25 Mortgage MixMortgage banking income Gain on sale margin* Note: Dollars in millions *Gain on sale margin excludes pipeline fair value adjustments included in “Gain on sales of loans, net” in the table above. ($ in thousands) 3Q20 2Q21 3Q21 Gain on sales of loans, net 45,985$ 17,58
Slide 26: Efficiency Ratio
65% 71% 60% 68% 67% 63% 64% 64% 67% 66% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Efficiency Ratio (GAAP) Adjusted Efficiency Ratio (non-GAAP)* Efficiency Ratio 26 *Adjusted Efficiency Ratio is a non-GAAP financial measure. See slide 35 in the appendix for a description of exclusions and a reconciliat
Slide 27: Appendix
[NRENASANT CORPORATION Appendix
Slide 28: Non-GAAP Financial Measures
28 Non-GAAP Financial Measures In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this presentation contains non-GAAP financial measures, namely, earnings, with exclusions, adjusted pre-provision net revenue, the ratio
Slide 29: Adjusted Pre-Provision Net Revenue
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue 29 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net income (GAAP) 29,992$ 31,521$ 57,908$ 40,867$ 40,063$ Income taxes 7,612 6,818 16,842 7,545 11,185 Provision for credit losses (including unfunded commitments) 25,8
Slide 30: Adjusted Pre-Provision Net Revenue/Average Assets
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets 30 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net income (GAAP) 29,992$ 31,521$ 57,908$ 40,867$ 40,063$ Debt prepayment penalties 28 3 - - - MSR valuation adjustment (828) (1,968) (13,561) - - Restru
Slide 31: Diluted Earnings Per Share
Reconciliation of Non-GAAP Disclosures 31 Diluted Earnings Per Share $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net income (GAAP) 29,992$ 31,521$ 57,908$ 40,867$ 40,063$ Debt prepayment penalties 28 3 - - - MSR valuation adjustment (828) (1,968) (13,561) - - Restructuring charges - 7,365
Slide 32: Return on Average Tangible Common Equity (Adjusted)
Reconciliation of Non-GAAP Disclosures 32 Return on Average Tangible Common Equity (Adjusted) $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net income (GAAP) 29,992$ 31,521$ 57,908$ 40,867$ 40,063$ Debt prepayment penalties 28 3 - - - MSR valuation adjustment (828) (1,968) (13,561) - - Rest
Slide 33: Core Net Interest Income (FTE) and Core Net Interest Margin
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin 33 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net interest income (FTE) (GAAP) 107,885$ 110,024$ 111,264$ 111,205$ 105,002$ Less: Net interest income collected on problem loans 282 128 2,18
Slide 34: Core Loan Yield
Reconciliation of Non-GAAP Disclosures Core Loan Yield 34 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Loan interest income (FTE) (GAAP) 112,764$ 113,457$ 113,072$ 110,785$ 103,769$ Less: Net interest income collected on problem loans 282 128 2,180 1,339 316 Accretable yield recognized on
Slide 35: Adjusted Efficiency Ratio
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio 35 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net interest income (FTE) (GAAP) 107,885$ 110,024$ 111,264$ 111,205$ 105,002$ Total noninterest income (GAAP) 70,928 62,864 81,037 47,610 50,755 Securities gains (losses) - 15 1
Slide 36: Tangible Common Equity and Tangible Book Value
Reconciliation of Non-GAAP Disclosures Tangible Common Equity and Tangible Book Value 36 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Actual shareholders' equity (GAAP) 2,104,300$ 2,132,733$ 2,173,701$ 2,203,807$ 2,203,944$ Intangibles 971,481 969,823 968,225 966,686 965,205 Actual tangibl
Slide 37: Asset Quality Ratios excluding PPP loans
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans 37 $ in thousands Q3 2020 Q4 2020 1Q 2021 2Q 2021 3Q 2021 Total loans (GAAP) 11,084,738$ 10,933,647$ 10,688,408$ 10,149,242$ 10,016,824$ Less: PPP loans 1,307,972 1,128,703 860,864 246,931 67,462 Adjusted total loans (no
Slide 38: Asset Quality Ratios excluding PPP loans, continued
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued 38 $ in thousands Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Total average loans (GAAP) 11,041,684$ 11,019,505$ 10,802,991$ 10,478,121$ 10,017,742$ Less: Average PPP loans 1,305,229 1,252,990 985,561 628,462 126,
Slide 39: NAVAN
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