Slide 1: First Quarter 2022 Investor Presentation
First Quarter 2022 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, 2022 (1) Total revenue is calculated as net interest income plus noninterest income. Company Snapshot Loans and Deposits by State Assets: $16.9 billion Loans: 10.3 Deposits: 14.0 Equity: 2.1 4 MS 23% AL 24% FL 6% GA 30% TN 17% Loans MS 36% AL 14%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 $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 • Al
Slide 7: Financial Condition
[NRENASANT CORPORATION Financial Condition
Slide 8: Balance Sheet Growth
$2,044 $2,126 $2,133 $2,210 $2,138 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 2018 2019 2020 2021 Q1 2022 $10,129 $10,213 $12,060 $13,906 $13,991 $0 $2,000 $4,000 $6,000 $8,000 $10 ,000 $12 ,000 $14 ,000 $16 ,000 2018 2019 2020 2021 Q1 2022 $9,083 $9,690 $10,933 $10,021 $10,313 $9,804 $9,963 $
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 43 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 $22.35 $20.91 201
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 40 in the appendix for a
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition 1-4 Family 21% HELOC 5% Consumer 1% Construction & Land Dev. 15% NOO CRE 28% OO CRE 14% C&I 14% Other 2% *Chart excludes PPP loans of $8.4 million At March 31, 2022, loans held for investment totaled $10.3 billion 11 • Legacy of proactive portfolio management and conservat
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio 12 2No industry included in the 46% of C&I above exceeds 3% of the total loan portfolio Note: Chart excludes PPP loans of $8.4 million 1NOO CRE Construction loans have been restated to their respective permanent collateral type
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 81% 78% 73% 76% 79% 83% 87% 82% 88% 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 $12,737 $13,115 $13,255 $13,906 $13,991 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
Slide 15: Core Deposit Funding
Core Deposit Funding 34% 49% 8% 7% 2% Noninterest-bearing Interest-bearing Savings Time < $250,000 Time > $250,000 Cost of Funds 1Q21 4Q21 1Q22 Noninterest-bearing demand - - - Interest-bearing demand 0.27% 0.21% 0.22% Savings 0.08% 0.06% 0.05% Time deposits 1.02% 0.67% 0.55% Borrowed funds 3.21% 4.
Slide 16: Liquidity
Liquidity 16 Note: Dollars in millions $1,262 $1,605 $1,476 $1,878 $1,607 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Cash and Cash Equivalents $1,536 $2,164 $2,545 $2,387 $2,405 $416 $487 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Q1
Slide 17: Capital Position
Subordinated Notes $335,244 ACL $133,117 Trust Preferred $107,927 Common Equity Tier 1 $1,316,342 1 Capital Position 17 Tier 1 $1,424 Tier 2 $468 Regulatory Capital as of March 31, 2022 • $50 million stock repurchase program will remain in effect through October 2022; however, no buyback activity in
Slide 18: Strong Capital Position
Strong Capital Position 18 (1) Inclusive of the capital conservation buffer * Tangible Common Equity 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. Ratio 1Q 2021 2Q 2021 3Q 2021 4Q 20
Slide 19: Dividend History
Dividend History 19 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00
Slide 20: Asset Quality
[NRENASANT CORPORATION Asset Quality
Slide 21: Asset Quality
2.47% 2.00% 2.50% 3.00% 3.50% 4.00% $200,000 $250,000 $300,000 $350,000 $400,000 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Criticized Loans/Total Loans* Criticized Loans % of Total Loans, excl. PPP ($ in thousands) 0.30% 0.00% 0.50% 1.00% 1.50% 2.00% $- $25,000 $50,000 $75,000 $100,000 1Q 2021 2Q 2021
Slide 22: Asset Quality
0.32% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 NPAs/Total Assets* Nonperforming loans OREO % of Assets, excl. PPP ($ in thousands) 0.03% 0.00% 0.20% 0.40% 0.60% 0.80% $- $5,000 $10,000 $15,000 $20,000 1Q 2
Slide 23: ACL Metrics
1.62% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% $140,000 $150,000 $160,000 $170,000 $180,000 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Allowance/Total Loans* Allowance % of Total Loans, excl. PPP ($ in thousands) 319% 200% 250% 300% 350% 400% $140,000 $150,000 $160,000 $170,000 $180,000 1Q 2021 2Q 2021 3Q 2
Slide 24: ACL Summary
ACL Summary ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans SBA Paycheck Protection Program - - - - Commercial, Financial, Agricultural 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 36,848 1.30 Real Estate -
Slide 25: Loss Absorption Capacity
Loss Absorption Capacity 25 ($ 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$
Slide 26: Profitability
[NRENASANT CORPORATION Profitability
Slide 27: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 27 $57.9 $40.9 $40.1 $37.1 $33.5 $62.3 $48.8 $50.2 $49.2 $42.7 1.66% 1.24% 1.23% 1.19% 1.04% 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Net Income P Adj. PPNR (non-GAAP)* Adj. PPNR /Avg. Assets (non-GAAP)* Note: Dollars in millions *Adjusted Pre-Provisio
Slide 28: Diluted Earnings per Share Reported and Adjusted
Diluted Earnings per Share Reported and Adjusted* 28 $1.02 $.72 $.71 $.66 $.60 $.85 $.73 $.71 $.68 $.60 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 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 m
Slide 29: Profitability Ratios
Profitability Ratios 29 10.81% 7.40% 7.16% 6.59% 6.05% 16.68% 13.64% 13.13% 12.31% 10.99% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 ROE (GAAP) ROTCE (Adjusted) (non-GAAP)* 1.54% 1.04% 0.99% 0.89% 0.81% 1.29% 1.04% 0.99% 0.92% 0.82% 0.00%
Slide 30: Core Net Interest Income & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 30 $111.3 $111.2 $105.0 $103.3 $101.4 3.37% 3.19% 2.93% 2.81% 2.76%3.12% 2.92% 2.76% 2.73% 2.71% 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 Inte
Slide 31: Noninterest Income Contribution
Note: Dollars in thousands $81,037 $47,610 $50,755 $47,582 $37,458 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Service Charges Fees and Commissions Insurance Wealth Management Mortgage Banking Securities Gains Other Noninterest Income 31 Service Charges 25% Fees and Commissions 11% Insurance 7% Wealth M
Slide 32: Mortgage Banking
Mortgage Banking 32 Mortgage MixMortgage banking income Gain on sale margin* *Gain on sale margin excludes pipeline fair value adjustments included in “Gain on sales of loans, net” in the table above. ($ in thousands) 1Q21 4Q21 1Q22 Gain on sales of loans, net 33,901$ 10,801$ 6,047$ Fees, net 4,902
Slide 33: Noninterest Expense and Efficiency Ratio
Noninterest Expense and Efficiency Ratio 33 Salaries and employee benefits 66% Data processing 5% Net occupancy and equipment 12% Intangible amortization 1% Other 16% Q1 2022 – Noninterest Expense Mix($ in thousands) 4Q21 1Q22 Change Salaries and employee benefits 62,523$ 62,239$ (284)$ Data process
Slide 34: Appendix
[NRENASANT CORPORATION Appendix
Slide 35: Adjusted Pre-Provision Net Revenue Reconciliation
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue 35(1) Primarily consists of employee overtime and employee benefit accruals directly related to the response to the COVID-19 pandemic and federal legislation enacted to address the pandemic, such as the CARES Act, and expenses
Slide 36: Adjusted Pre-Provision Net Revenue/Average Assets Reconciliation
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets 36 (1) See footnote 1 on slide 35 for an explanation of the types of expenses included in the COVID-19 related expenses line item. (2) Tax effect is calculated based on the respective periods’ effective tax rate
Slide 37: Adjusted Diluted Earnings Per Share Reconciliation
Reconciliation of Non-GAAP Disclosures 37 Adjusted Diluted Earnings Per Share (1) See footnote 1 on slide 35 for an explanation of the types of expenses included in the COVID-19 related expenses line item. (2) Tax effect is calculated based on the respective periods’ effective tax rate excluding the
Slide 38: Return on Average Tangible Common Equity Reconciliation
Reconciliation of Non-GAAP Disclosures 38 Return on Average Tangible Common Equity (Adjusted) (1) See footnote 1 on slide 35 for an explanation of the types of expenses included in the COVID-19 related expenses line item. (2) Tax effect is calculated based on the respective periods’ effective tax ra
Slide 39: Core Net Interest Income and Core Net Interest Margin Reconciliation
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin 39 $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Net interest income (FTE) (GAAP) 111,264$ 111,205$ 105,002$ 103,249$ 101,383$ Less: Net interest income collected on problem loans 2,180 1,339
Slide 40: Core Loan Yield Reconciliation
Reconciliation of Non-GAAP Disclosures Core Loan Yield 40 $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Loan interest income (FTE) (GAAP) 113,072$ 110,785$ 103,769$ 99,670$ 97,001$ Less: Net interest income collected on problem loans 2,180 1,339 316 578 434 Accretable yield recognized on pu
Slide 41: Adjusted Efficiency Ratio Reconciliation
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio 41(1) See footnote 1 on slide 35 for an explanation of the types of expenses included in the COVID-19 related expenses line item. $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Net interest income (FTE) (GAAP) 111,264$ 111,205$
Slide 42: Tangible Common Equity Reconciliation
Reconciliation of Non-GAAP Disclosures Tangible Common Equity 42 $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Actual shareholders' equity (GAAP) 2,173,701$ 2,203,807$ 2,203,944$ 2,209,853$ 2,137,642$ Intangibles 968,225 966,686 965,205 963,781 969,022 Actual tangible shareholders' equity (
Slide 43: Tangible Book Value Reconciliation
Reconciliation of Non-GAAP Disclosures Tangible Book Value 43 $ in thousands (except share data) 2013 2014 2015 2016 2017 Actual shareholders' equity (GAAP) 665,652$ 711,651$ 1,036,818$ 1,232,883$ 1,514,983$ Intangibles 304,330 297,330 474,682 494,608 635,556 Actual tangible shareholders' equity (no
Slide 44: Asset Quality Ratios excluding PPP loans
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans 44 $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Total loans (GAAP) 10,688,408$ 10,149,242$ 10,016,824$ 10,020,914$ 10,313,459$ Less: PPP loans 860,864 246,931 67,462 58,391 8,382 Adjusted total loans (non-GAAP)
Slide 45: Asset Quality Ratios excluding PPP loans, continued
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued 45 $ in thousands Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Total average loans (GAAP) 10,802,991$ 10,478,121$ 10,017,742$ 9,948,610$ 10,108,511$ Less: Average PPP loans 985,561 628,462 126,870 62,726 39,506 Adj
Slide 46: Investor Inquiries
Investor Inquiries 46 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