Renasant Corporation · NYSE:RNST
Renasant — Q1 2021 Earnings Presentation
45 slides from Renasant's earnings presentation, Apr 30, 2021
Slide 1: First Quarter 2021 Investor Presentation
First Quarter 2021 Investor Presentation
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: Who We Are
3 Business model prioritizing core funding, asset quality and capital strength Operate in attractive, high growth markets throughout the Southeast History of organic growth and opportunistic acquisitions Focused on improving operating leverage Who We Are
Slide 4: Overview: Company Snapshot and Loans and Deposits by State
Overview Note: Financial data as of March 31, 2021 (1) Total revenue is calculated as net interest income plus noninterest income. Company Snapshot Loans and Deposits by State Assets: $15.6 billion Loans: 10.7 Deposits: 12.7 Equity: 2.2 4 MS 24% AL 20% FL 5% GA 33% TN 18% Loans MS 38% AL 12%FL 3% GA
Slide 5: 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 6: First Quarter Highlights
First Quarter Highlights 6 • Net income of $57.91 million and diluted EPS of $1.02 • Mortgage banking income was $50.73 million, inclusive of a $13.56 million MSR valuation adjustment • Allowance for credit losses to total loans, excluding Paycheck Protection Program (“PPP”) loans, decreased to 1.76
Slide 7: Financial Condition
[NRENASANT CORPORATION Financial Condition
Slide 8: Balance Sheet Growth
$1,515 $2,044 $2,126 $2,133 $2,174 $1,0 00 $1,2 00 $1,4 00 $1,6 00 $1,8 00 $2,0 00 $2,2 00 2017 2018 2019 2020 Q1 2021 $7,921 $10,129 $10,213 $12,060 $12,737 $0 $2,0 00 $4,0 00 $6,0 00 $8,0 00 $10 ,000 $12 ,000 $14 ,000 2017 2018 2019 2020 Q1 2021 $7,620 $9,083 $9,690 $10,933 $10,688 $9,804 $9,827 $
Slide 9: Tangible Book Value Per Share
Tangible Book Value Per Share* 9 *Tangible Book Value Per Share is a non-GAAP financial measure. See slide 42 in the appendix for a description of the exclusions and a reconciliation of this non-GAAP financial measure to GAAP. $11.51 $13.13 $13.95 $16.65 $17.83 $18.21 $20.20 $20.69 $21.41 2013 2014
Slide 10: Loans and Yields
Loans and Yields 10Note: 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 39 in the appendix for a
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition Const 10% 1-4 Family 27% Land Dev 1% Non Owner Occupied 24% Multifamily 4% Owner Occupied 17% C&I 14% Consumer and Leases 3% *Chart excludes PPP loans of $860 million At March 31, 2021, loans held for investment totaled $10.7 billion 11 • Legacy of proactive portfolio mana
Slide 12: Diversified Commercial Loan Portfolio
Diversified Commercial Loan Portfolio $7.1 Billion(1) of Commercial Loans 12Note: Financial data as of March 31, 2021. Dollars in millions. (1) Excludes PPP loans Construction, $681, 10% Retail Trade, $788, 11% Real Estate and Rental and Leasing, $804, 11% Office, $604, 9% Health Care and Social Ass
Slide 13: ADC and CRE Loan Concentration Levels
ADC and CRE Loan Concentration Levels 13 ADC Loans as a Percentage of Bank Risk Based Capital CRE Loans (Const. & Perm) as a Percentage of Bank Risk Based Capital 78% 79% 83% 83% 81% 78% 73% 76% 79% 0% 20% 40% 60% 80% 100% 0% 50% 100% 150% 200% 250% 300%
Slide 14: Deposit Mix and Pricing
Deposit Mix and Pricing 14 Note: Dollars in millions $10,412 $11,846 $11,934 $12,059 $12,737 0.72% 0.49% 0.40% 0.33% 0.27% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Noninterest-bearing Interest-bearing Savings Time Cost of deposits
Slide 15: Core Deposit Funding
Core Deposit Funding 32% 48% 7% 10% 3% Noninterest-bearing Interest-bearing Savings Time < $250,000 Time > $250,000 Cost of Funds 1Q20 4Q20 1Q21 Noninterest-bearing demand - - - Interest-bearing demand 0.75% 0.31% 0.27% Savings 0.15% 0.08% 0.08% Time deposits 1.71% 1.20% 1.02% Borrowed funds 2.46% 3
Slide 16: Liquidity
Liquidity 16 Note: Dollars in millions $638 $617 $414 $633 $1,262 $0 $20 0 $40 0 $60 0 $80 0 $1,0 00 $1,2 00 $1,4 00 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Cash and Cash Equivalents $1,359 $1,303 $1,293 $1,343 $1,536 $1,0 00 $1,1 00 $1,2 00 $1,3 00 $1,4 00 $1,5 00 $1,6 00 Q1 2020 Q2 2020 Q3 2020 Q4
Slide 17: Capital Position
Capital Position 17 Tier 1 $1,353 Tier 2 $348 Regulatory Capital as of March 31, 2021 • $50 million stock repurchase program in effect until October 2021. • Consistent dividend payment history, including through the 2008 financial crisis. • Callable subordinated debt in 2021: • July 2021 - $15 milli
Slide 18: Strong Capital Position
Strong Capital Position 18 * Tangible Common Equity is a non-GAAP financial measure. See slide 41 in the appendix for a description of the exclusions and a reconciliation of this non- GAAP financial measure to GAAP. Ratio 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Minimum to be Well Capitalized Tangibl
Slide 19: Dividend History
Dividend History 19 Annually Quarterly $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25
Slide 20: Asset Quality
[NRENASANT CORPORATION Asset Quality
Slide 21: Asset Quality
2.33% 0.00% 1.00% 2.00% 3.00% 4.00% $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Classified Loans/Total Loans* Classified Loans % of Total Loans, excl. PPP ($ in thousands) 0.22% 0.00% 0.50% 1.00% 1.50% 2.00% $- $25,000 $50,000 $75,000 $100,000 1Q 2
Slide 22: Asset Quality
0.42% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 NPAs/Total Assets* Nonperforming loans OREO % of Assets ($ in thousands) 0.13% 0.00% 0.10% 0.20% 0.30% 0.40% $- $5,000 $10,000 $15,000 $20,000 1Q 2020 2Q 2020
Slide 23: Asset Quality
1.76% 0.00% 0.50% 1.00% 1.50% 2.00% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Allowance/Total Loans Allowance % of Total Loans, excl. PPP* ($ in thousands) 309% 0% 100% 200% 300% 400% 500% $- $20,000 $40,000 $60,000 $80,00
Slide 24: ACL Summary
ACL Summary ($ 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 37,592$ 2.71 Lease Financing Receivables 1,624 2.14 1,546 2.05 Real Estate - 1-4 Family Mortgage 32,165 1.19 31,694 1.18 Real Estate -
Slide 25: Profitability
[NRENASANT CORPORATION Profitability
Slide 26: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 26 $2.0 $20.1 $30.0 $31.5 $57.9 $45.0 $65.6 $63.2 $57.4 $62.3 1.34% 1.79% 1.68% 1.53% 1.66% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2018 2019 Net Income PPNR (Non-GAAP) PPNR/Avg Assets (Non-GAAP)Adj. PPNR (non-GAAP)* Adj. PPNR /Avg. Assets (non-GAAP)*
Slide 27: Diluted Earnings per Share Reported and Adjusted
Diluted Earnings per Share Reported and Adjusted* 27 $.04 $.36 $.53 $.56 $1.02 $.20 $.52 $.53 $.68 $.85 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 EPS (GAAP) EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial measure. See slid
Slide 28: Profitability Ratios
Profitability Ratios 28 0.38% 3.85% 5.63% 5.88% 10.81% 4.41% 11.01% 10.81% 13.52% 16.68% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 ROE (GAAP) ROTCE (Adjusted) (non-GAAP)* * ROAA (Adjusted) and ROTCE (Adjusted) are non-GAAP financial meas
Slide 29: Core Net Interest Income (FTE) & Net Interest Margin
Core Net Interest Income (FTE) & Net Interest Margin* 29 $108.3 $107.5 $107.9 $110.0 $111.3 3.75% 3.38% 3.29% 3.35% 3.37% 3.56% 3.26% 3.23% 3.22% 3.12% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Interest
Slide 30: Noninterest Income and Mortgage Banking
Note: Dollars in thousands $37,570 $64,170 $70,928 $62,864 $81,037 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Service Charges Fees and Commissions Insurance Wealth Management Mortgage Banking Securities Gains Other Noninterest Income 30 ($ in thousands) 1Q20 4Q20 1Q21 Gain on sales of loans, net 21,782
Slide 31: Efficiency Ratio
79% 69% 65% 71% 60% 69% 61% 63% 64% 64% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Efficiency Ratio (GAAP) Adjusted Efficiency Ratio (non-GAAP)* Efficiency Ratio 31 Note: Dollars in millions *Adjusted Efficiency Ratio is a non-GAAP financial measure. See slide 40 in the appendix for a description of ex
Slide 32: Appendix
[NRENASANT CORPORATION Appendix
Slide 33: COVID-19 Credit Impact Update
COVID-19 Credit Impact Update • As of March 31, 2021, loans on deferral decreased to 0.96% of total loans, excluding PPP loans Loan Portfolio Portfolio Amount ($ in millions) Percentage of Total Loan Portfolio(1) Percentage of Portfolio Deferred(1) Percentage of Portfolio in Special Mention Percenta
Slide 34: Reconciliation: Adjusted Pre-Provision Net Revenue
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue 34 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net income (GAAP) 2,008$ 20,130$ 29,992$ 31,521$ 57,908$ Income taxes 773 4,637 7,612 6,818 16,842 Provision for credit losses (including unfunded commitments) 29,750 2
Slide 35: Reconciliation: Adjusted PPNR/Average Assets
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets 35 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net income (GAAP) 2,008$ 20,130$ 29,992$ 31,521$ 57,908$ Debt prepayment penalties - 90 28 3 - MSR valuation adjustment 9,571 4,951 (828) (1,968) (13,561
Slide 36: Reconciliation: Diluted Earnings Per Share
Reconciliation of Non-GAAP Disclosures 36 Diluted Earnings Per Share $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net income (GAAP) 2,008$ 20,130$ 29,992$ 31,521$ 57,908$ Debt prepayment penalties - 90 28 3 - MSR valuation adjustment 9,571 4,951 (828) (1,968) (13,561) Restructuring charges
Slide 37: Reconciliation: Return on Average Tangible Common Equity
Reconciliation of Non-GAAP Disclosures 37 Return on Average Tangible Common Equity (Adjusted) $ in thousands 1Q20 2Q20 3Q20 4Q20 1Q 2021 Net income (GAAP) 2,008$ 20,130$ 29,992$ 31,521$ 57,908$ Debt prepayment penalties - 90 28 3 - MSR valuation adjustment 9,571 4,951 (828) (1,968) (13,561) Restruct
Slide 38: Reconciliation: Core Net Interest Income and Margin
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin 38 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net interest income (FTE) (GAAP) 108,316$ 107,457$ 107,885$ 110,024$ 111,264$ Less: Net interest income collected on problem loans 218 384 282
Slide 39: Reconciliation: Core Loan Yield
Reconciliation of Non-GAAP Disclosures Core Loan Yield 39 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Loan interest income (FTE) (GAAP) 118,741$ 113,727$ 112,764$ 113,457$ 113,072$ Less: Net interest income collected on problem loans 218 384 282 128 2,180 Accretable yield recognized on pu
Slide 40: Reconciliation: Adjusted Efficiency Ratio
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio 40 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net interest income (FTE) (GAAP) 108,316$ 107,457$ 107,885$ 110,024$ 111,264$ Total noninterest income (GAAP) 37,570 64,170 70,928 62,864 81,037 Securities gains (losses) - 31 -
Slide 41: Reconciliation: Tangible Common Equity
Reconciliation of Non-GAAP Disclosures Tangible Common Equity 41 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Actual shareholders' equity (GAAP) 2,070,512$ 2,082,946$ 2,104,300$ 2,132,578$ 2,173,701$ Intangibles 975,048 973,214 971,481 969,823 968,225 Actual tangible shareholders' equity (
Slide 42: Reconciliation: Tangible Book Value
Reconciliation of Non-GAAP Disclosures Tangible Book Value 42 $ in thousands (except share data) 2013 2014 2015 2016 Actual shareholders' equity (GAAP) 665,652$ 711,651$ 1,036,818$ 1,232,883$ Intangibles 304,330 297,330 474,682 494,608 Actual tangible shareholders' equity (non-GAAP) 361,322$ 414,321
Slide 43: Reconciliation: Asset Quality Ratios excluding PPP Loans
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans 43 $ in thousands Q1 2020 Q2 2020 Q3 2020 Q4 2020 1Q 2021 Total loans (GAAP) 9,769,377$ 10,997,304$ 11,084,738$ 10,933,647$ 10,688,408$ Less: PPP loans - 1,281,278 1,307,972 1,128,703 860,864 Adjusted total loans (non-GA
Slide 44: Reconciliation: Asset Quality Ratios excluding PPP Loans, continued
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued 44 $ in thousands Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Total average loans (GAAP) 9,687,285$ 10,616,147$ 11,041,684$ 11,019,505$ 10,802,991$ Less: Average PPP loans - 866,078 1,305,229 1,252,990 985,561 Adj
Slide 45: Investor Inquiries
Investor Inquiries 45 C. Mitchell Waycaster President and Chief Executive Officer Kevin D. Chapman Senior Executive Vice President, Chief Operating Officer James C. Mabry IV Senior Executive Vice President, Chief Financial Officer