Renasant Corporation · NYSE:RNST
Renasant — Q1 2022 Earnings Presentation
27 slides from Renasant's earnings presentation, 2022
Slide 1: First Quarter 2022 Earnings Call
First Quarter 2022 Earnings Call
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
Overview Company Snapshot Loans and Deposits by State Assets: $16.9 billion Loans Loans: 10.3 Deposits: 14.0 Equity: 2.1 TN MS 17% 23% YTD Total Revenue(1) GA AL 30% 10% 2% 24% 5% FL 6% Deposits TN 83% 13% MS 36% GA Community Banking Wealth Management 34% AL Mortgage Insurance FL 14% 3% 3 Note: Fina
Slide 4: Renasant Footprint
Renasant Footprint Winston-Salem Nashville Knoxville 81 95 Greensboro 40 TENNESSEE Raleigh 77 ARKANSAS 24 75 Memphis Charlotte NORTH CAROLINA Chattanooga Greenville 40 Huntsville 85 Tupelo 65 Columbia Wilmington Birmingham 95 Atlanta 20 SOUTH CAROLINA GEORGIA MISSISSIPPI ALABAMA 20 Columbus Charlest
Slide 5: First Quarter Highlights
First Quarter Highlights • Net income of $33.5 million with diluted EPS of $0.60 • Completed the acquisition of Southeastern Commercial Finance, LLC, an asset-based lending company headquartered in Birmingham, AL, on March 1, 2022, which added $28.1 million in loans on the date of acquisition • Allo
Slide 6: Financial Condition
RENASAN CORPORATION Financial Condition
Slide 7: Total Assets
Total Assets $17 ,000 $16,810 $16,864 $16 ,500 $16,156 $16,022 $16 ,000 $15,623 $15 ,500 $15 ,000 $14 ,500 $14 ,000 $13 ,500 $13 ,000 $12 ,500 $12 ,000 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 7 Note: Dollars in millions
Slide 8: Loans and Yields
Loans and Yields 4.24% 4.24% 4.11% 3.98% 3.88% 4.01% 3.94% 3.89% 3.87% 3.82% $10,688 $10,313 $10,149 $10,017 $10,021 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 1-4 Family Mortgage Commercial Mortgage Construction Other* C&I Paycheck Protection Program ("PPP") Loan Yield Core Loan Yield** Note: Dollars
Slide 9: Deposit Mix and Pricing
Deposit Mix and Pricing $13,906 $13,991 $13,115 $13,255 $12,737 0.27% 0.24% 0.21% 0.18% 0.17% 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Noninterest-bearing Interest-bearing Savings Time Cost of deposits 9 Note: Dollars in millions
Slide 10: Liquidity
Liquidity Cash and Cash Equivalents Average Loans to Average Deposits $1 $2,0 00 $1,8 00 $1 $1,6 00 $1,4 00 $1 $1,2 00 $1,878 88% $1 $1,0 00 $80 0 $1,605 $1,476 $1,607 81% $1,262 $1 76% $60 0 $40 0 73% 74% $1 $20 0 $0 $1 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Slide 11: Capital Position
Capital Position Regulatory Capital as of March 31, 2022 Capital Highlights • $50 million stock repurchase program will remain in effect through October 2022; however, no buyback activity in the first quarter of 2022 • Consistent dividend payment history, including through the 2008 financial crisis
Slide 12: Capital Ratios
Capital Ratios Strong Capital Position Minimum to be Well Ratio 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Capitalized (1) Tangible Common 8.23% 8.22% 8.15% 7.86% 7.35% N/A Equity* Leverage 9.49 9.30 9.18 9.15 9.00 5.00% Tier 1 Risk Based 12.00 12.07 11.94 12.10 11.67 8.50 Total Risk Based 15.09 15.11
Slide 13: Asset Quality
RENASAN CORPORATION Asset Quality
Slide 14: Asset Quality
Asset Quality Loans 30-89 Days Past Due/ Criticized Loans/Total Loans* Total Loans* $400,000 4.00% $100,000 2.00% $350,000 3.50% $75,000 1.50% $300,000 2.47% 3.00% $50,000 1.00% 0.30% $25,000 0.50% $250,000 2.50% $- 0.00% $200,000 2.00% ($ in thousands) 1Q 2Q 3Q 4Q 1Q ($ in thousands) 1Q 2Q 3Q 4Q 1Q
Slide 15: Asset Quality
Asset Quality NPAs/Total Assets* Net Charge-offs/Average Loans* $150,000 3.00% $20,000 0.80% $125,000 2.50% $15,000 0.60% $100,000 2.00% $75,000 1.50% $10,000 0.40% 0.32% $50,000 1.00% $5,000 0.20% $25,000 0.50% 0.03% $- 0.00% $- 0.00% ($ in thousands) ($ in thousands) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q
Slide 16: ACL Metrics
ACL Metrics Allowance/Total Loans* Allowance/Nonperforming Loans $180,000 1.62% 2.00% $180,000 400% 1.80% 319% $170,000 $170,000 350% 1.60% $160,000 $160,000 300% 1.40% $150,000 $150,000 250% 1.20% $140,000 1.00% $140,000 200% ($ in thousands) ($ in thousands) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2021 2021
Slide 17: ACL Summary
ACL Summary 12/31/2021 3/31/2022 ACL as a % ACL as a % ($ in thousands) ACL of Loans ACL of Loans SBA Paycheck Protection Program - - - - Commercial, Financial, Agricultural $ 33,922 2.49 $ 33,606 2.32 Lease Financing Receivables 1,486 1.95 1,582 1.76 Real Estate - 1-4 Family Mortgage 32,356 1.19 36
Slide 18: Loss Absorption Capacity
Loss Absorption Capacity ($ in thousands) 3/31/2022 Allowance for Credit Losses on Loans $ 166,468 Reserve for Unfunded Commitments 19,485 Purchase Accounting Discounts 14,102 Total Loss Absorption Capacity $ 200,055 18
Slide 19: Profitability
RENASAN CORPORATION Profitability
Slide 20: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 1.66% $62.3 1.24% 1.23% 1.19% 1.04% $48.8 $50.2 $49.2 $42.7 $57.9 $40.9 $40.1 $37.1 $33.5 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Net Income Adj. PPNR (non-GAAP)* PAdj. PPNR /Avg. Assets (non-GAAP)* Note: Dollars in millions *Adjusted Pre-Provision Ne
Slide 21: Diluted Earnings per Share Reported and Adjusted
Diluted Earnings per Share Reported and Adjusted* $1.20 $1.02 $1.00 $.85 $0.80 $.72 $.73 $.71 $.71 $.68 $.66 $.60 $.60 $0.60 $0.40 $0.20 $- 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Diluted EPS (GAAP) Diluted EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial meas
Slide 22: Profitability Ratios
Profitability Ratios Return on Average Assets (ROAA) Return on Average Equity (ROE) 1.80% 18.00% 16.68% 1.60% 1.54% 16.00% 1.40% 13.64% 14.00% 13.13% 1.29% 12.31% 1.20% 12.00% 10.81% 10.99% 1.04% 1.04% 0.99% 0.99% 1.00% 10.00% 0.89% 0.92% 0.81% 0.82% 0.80% 8.00% 7.40% 7.16% 6.59% 6.05% 0.60% 6.00% 0
Slide 23: Core Net Interest Income (FTE) & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 3.37% 3.19% 2.93% 3.12% 2.81% 2.76% 2.92% 2.76% 2.73% 2.71% $111.3 $111.2 $105.0 $103.3 $101.4 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Intere
Slide 24: Noninterest Income
Noninterest Income Q1 2022 – Noninterest Income $81,037 Contribution Other 15% Service Charges $50,755 25% $47,610 $47,582 $37,458 Mortgage Banking 26% Fees and Commissions 11% Wealth Management Insurance 16% 7% 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Service Charges Fees and Commissions • Wealth ma
Slide 25: Mortgage Banking
Mortgage Banking Mortgage banking income Mortgage Mix ($ in thousands) 1Q21 4Q21 1Q22 (in %) 1Q21 4Q21 1Q22 Gain on sales of loans, net $ 33,901 $ 10,801 $ 6,047 Wholesale 43 38 38 Fees, net 4,902 4,320 3,053 Retail 57 62 62 Mortgage servicing income, net (1,631) (395) 533 Purchase 53 65 73 MSR valu
Slide 26: Noninterest Expense and Efficiency Ratio
Noninterest Expense and Efficiency Ratio ($ in thousands) 4Q21 1Q22 Change Q1 2022 – Noninterest Expense Mix Salaries and employee benefits $ 62,523 $ 62,239 $ (284) Other 16% Data processing 5,346 4,263 (1,083) Intangible amortization Net occupancy and equipment 11,177 11,276 99 1% Intangible amort
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