Renasant Corporation · NYSE:RNST
Renasant — Q4 2021 Earnings Presentation
46 slides from Renasant's earnings presentation, January 2022
Slide 1: Fourth Quarter 2021 Investor Presentation
Fourth Quarter 2021 Investor Presentation
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: Who We Are
Who We Are Business model prioritizing Operate in attractive, high core funding, asset quality growth markets throughout and capital strength the Southeast History of organic growth Focused on improving and opportunistic operating leverage acquisitions 3
Slide 4: Overview
Overview Company Snapshot Loans and Deposits by State Assets: $16.8 billion Loans Loans: 10.0 Deposits: 13.9 Equity: 2.2 TN MS 17% 23% YTD Total Revenue(1) GA AL 2% 31% 23% FL 19% 6% 3% Deposits 76% TN 13% MS 36% GA Community Banking Wealth Management 34% AL Mortgage Insurance FL 14% 3% 4 Note: Fina
Slide 5: 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 6: Fourth Quarter Highlights
Fourth Quarter Highlights • Net income of $37.1 million with diluted EPS of $0.66 and adjusted diluted EPS (non-GAAP)(1) of $0.68 • Completed the public offering and sale of $200 million of 3.00% fixed-to- floating rate subordinated notes due 2031 • Allowance for credit losses on loans to total loan
Slide 7: Financial Condition
RENASAN CORPORATION Financial Condition
Slide 8: Balance Sheet Growth
Balance Sheet Growth Total Assets Total Loans excluding Loans Held for Sale $18 ,000 $16 ,000 $12 ,000 $10,933 $10,021 120 00 $14 ,000 $10 ,000 $1,129 $58 PPP (1) 100 00 $12 ,000 $8,0 00 800 0 $10 ,000 $16,810 $14,930 $6,0 00 600 0 $8,0 00 $6,0 00 $12,935 $13,401 $9,083 $9,690 $9,804 $9,963 $9,830 $
Slide 9: Tangible Book Value Per Share
Tangible Book Value Per Share* $22.35 $20.69 $20.20 $18.21 $17.83 $16.65 $13.95 $13.13 $11.51 2013 2014 2015 2016 2017 2018 2019 2020 2021 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 n
Slide 10: Loans and Yields
Loans and Yields 4.24% 4.24% 4.10% 4.11% 3.98% 4.03% 4.01% 3.94% 3.89% 3.87% $10,934 $10,688 $10,149 $10,017 $10,021 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1-4 Family Mortgage Commercial Mortgage Construction Other* C&I PPP Loan Yield Core Loan Yield** Note: Dollars in millions 10 * Other loans are
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio Highlights as of December 31, 2021 At December 31, 2021, loans held for investment totaled $10.0 billion • Legacy of proactive portfolio management and conservative credit underwriting • Granular loan portfolio: C&I 13% Other o Average loan size is approxima
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio 1 2 Construction & NOO CRE OO CRE, C&I and Other Commercial Office - Non- School Other OO Medical 1% 8% Warehouse / Office - 12% Retail Industrial Medical 17% 8% 7% Retail Multi-Family Senior 15% 16% Housing 7% C&I 44% Warehouse / Office - Non- Industrial Medical Mini 11%
Slide 13: ADC and CRE Loan Concentration Levels
ADC and CRE Loan Concentration Levels ADC Loans as a Percentage of CRE Loans (Const. & Perm) as a Percentage of Bank Risk Based Capital Bank Risk Based Capital 100% 300% 87% 83% 83% 83% 82% 81% 250% 78% 79% 78% 79% 80% 76% 73% 200% 60% 150% 40% 100% 20% 50% 0% 0% 13
Slide 14: Deposit Mix and Pricing
Deposit Mix and Pricing $13,906 $13,115 $13,255 $12,737 $12,059 0.33% 0.27% 0.24% 0.21% 0.18% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Noninterest-bearing Interest-bearing Savings Time Cost of deposits 14 Note: Dollars in millions
Slide 15: Core Deposit Funding
Core Deposit Funding Cost of Funds 4Q20 3Q21 4Q21 Deposits as of December 31, 2021 ($13.9 Billion) Noninterest-bearing demand - - - Interest-bearing demand 0.31% 0.24% 0.21% Savings 0.08% 0.08% 0.06% Time deposits 1.20% 0.78% 0.67% 2% Borrowed funds 3.05% 3.08% 4.03% 8% Total Cost of funds 0.44% 0.3
Slide 16: 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 92% $1,878 88% $1 $1,0 00 $80 0 $1,605 $1,476 81% $1,262 $1 76% $60 0 73% $633 $40 0 $1 $20 0 $0 $1 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 S
Slide 17: Capital Position
Capital Position Regulatory Capital as of December 31, 2021 Capital Highlights • Sold in a public offering $200 million of 3.00% fixed- to-floating rate subordinated notes due 2031 • $50 million stock repurchase program will remain in effect through October 2022; however, no buyback activity in the
Slide 18: Capital Ratios
Capital Ratios Strong Capital Position Minimum to be Well Ratio 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Capitalized (1) Tangible Common 8.33% 8.23% 8.22% 8.15% 7.86% N/A Equity* Leverage 9.37% 9.49% 9.30% 9.18% 9.15% 5.00% Tier 1 Risk Based 11.91% 12.00% 12.07% 11.94% 12.10% 8.50% Total Risk Based 1
Slide 19: Dividend History
Dividend History $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 19
Slide 20: Asset Quality
RENASAN CORPORATION Asset Quality
Slide 21: Asset Quality
Asset Quality Loans 30-89 Days Past Due/ Classified Loans/Total Loans* Total Loans* $300,000 4.00% $100,000 2.00% $250,000 3.00% $75,000 1.50% $200,000 1.61% $150,000 2.00% $50,000 1.00% 0.28% $100,000 $25,000 0.50% 1.00% $50,000 $- 0.00% $- 0.00% ($ in thousands) 4Q 1Q 2Q 3Q 4Q ($ in thousands) 4Q
Slide 22: 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% 0.22% $5,000 0.20% $25,000 0.50% $- 0.00% $- 0.00% ($ in thousands) ($ in thousands) 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q
Slide 23: ACL Metrics
ACL Metrics Allowance/Total Loans* Allowance/Nonperforming Loans $180,000 1.90% $180,000 400% 1.85% $170,000 1.65% $170,000 323% 350% 1.80% $160,000 1.75% $160,000 300% 1.70% $150,000 $150,000 250% 1.65% $140,000 1.60% $140,000 200% ($ in thousands) ($ in thousands) 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 202
Slide 24: ACL Summary
ACL Summary 12/31/2020 12/31/2021 ACL as a % ACL as a % ($ in thousands) ACL of Loans ACL of Loans SBA Paycheck Protection Program - - - - Commercial, Financial, Agricultural $ 39,031 2.77 $ 33,922 2.49 Lease Financing Receivables 1,624 2.14 1,486 1.95 Real Estate - 1-4 Family Mortgage 32,165 1.19 3
Slide 25: Loss Absorption Capacity
Loss Absorption Capacity ($ in thousands) 12/31/2021 Allowance for Credit Losses on Loans $ 164,171 Reserve for Unfunded Commitments 20,035 Purchase Accounting Discounts 14,794 Total Loss Absorption Capacity $ 199,000 25 * Allowance to total loans (excluding PPP loans) is a non-GAAP financial measur
Slide 26: Profitability
RENASAN CORPORATION Profitability
Slide 27: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 1.66% 1.53% $62.3 1.24% 1.23% 1.19% $57.4 $48.8 $50.2 $49.2 $57.9 $40.9 $40.1 $37.1 $31.5 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Net Income Adj. PPNR (non-GAAP)* PAdj. PPNR /Avg. Assets (non-GAAP)* Note: Dollars in millions *Adjusted Pre-Provision Ne
Slide 28: 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 $.68 $.66 $0.60 $.56 $0.40 $0.20 $- 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Diluted EPS (GAAP) Adjusted Diluted EPS (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial meas
Slide 29: 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% 13.52% 13.64% 14.00% 13.13% 1.29% 12.31% 1.20% 12.00% 1.04% 1.04% 10.81% 1.02% 0.99% 0.99% 1.00% 10.00% 0.89% 0.92% 0.84% 0.80% 8.00% 7.40% 7.16% 6.59% 5.88% 0.60% 6.00% 0
Slide 30: Core Net Interest Income (FTE) & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 3.35% 3.37% 3.19% 3.22% 2.93% 3.12% 2.81% 2.92% 2.76% 2.73% $110.0 $111.3 $111.2 $105.0 $103.3 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Intere
Slide 31: Noninterest Income
Noninterest Income Q4 2021 – Noninterest Income $81,037 Contribution Other Service $62,864 Charges 24% 21% $50,755 $47,610 $47,582 Fees and Commissions 8% Mortgage Insurance Banking 5% Wealth 31% Management 11% Securities Gains 0% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Service Charges Fees and Comm
Slide 32: Mortgage Banking
Mortgage Banking Mortgage banking income Mortgage Mix ($ in thousands) 4Q20 3Q21 4Q21 4Q20 3Q21 4Q21 Gain on sales of loans, net $ 36,080 $ 20,116 $ 10,801 Wholesale 41 42 38 Fees, net 5,318 3,420 4,320 Retail 59 58 62 Mortgage servicing income, net (3,606) (244) (395) Purchase 50 59 65 MSR valuatio
Slide 33: Noninterest Expense and Efficiency Ratio
Noninterest Expense and Efficiency Ratio ($ in thousands) 3Q21 4Q21 Change Q4 2021 – Noninterest Expense Mix Salaries and employee benefits $ 69,115 $ 62,523 $ (6,592) Other Debt 14% Data processing 5,277 5,346 69 prepayment penalties Net occupancy and equipment 11,748 11,177 (571) 6% Intangible amo
Slide 34: Appendix
RENASAN CORPORATION Appendix
Slide 35: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue $ in thousands 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Net income (GAAP) $ 31,521 $ 57,908 $ 40,867 $ 40,063 $ 37,054 Income taxes 6,818 16,842 7,545 11,185 11,363 Provision for credit losses (including unfunded commitments) 1
Slide 36: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets $ in thousands 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Net income (GAAP) $ 31,521 $ 57,908 $ 40,867 $ 40,063 $ 37,054 Debt prepayment penalties 3 - - - 6,123 Swap termination gains - - - - (4,676) MSR valuation
Slide 37: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Diluted Earnings Per Share $ in thousands 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Net income (GAAP) $ 31,521 $ 57,908 $ 40,867 $ 40,063 $ 37,054 Debt prepayment penalties 3 - - - 6,123 Swap termination gain - - - - (4,676) MSR valuation adjustment (1,9
Slide 38: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) $ in thousands 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Net income (GAAP) $ 31,521 $ 57,908 $ 40,867 $ 40,063 $ 37,054 Debt prepayment penalties 3 - - - 6,123 Swap termination gain - - - - (4,676) MSR valuation
Slide 39: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin $ in thousands 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Net interest income (FTE) (GAAP) $ 110,024 $ 111,264 $ 111,205 $ 105,002 $ 103,249 Less: Net interest income collected on problem loans 128 2,180
Slide 40: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Loan Yield $ in thousands 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Loan interest income (FTE) (GAAP) $ 113,457 $ 113,072 $ 110,785 $ 103,769 $ 99,670 Less: Net interest income collected on problem loans 128 2,180 1,339 316 578 Accretable yield recognized on
Slide 41: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio $ in thousands 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Net interest income (FTE) (GAAP) $ 110,024 $ 111,264 $ 111,205 $ 105,002 $ 103,249 Total noninterest income (GAAP) 62,864 81,037 47,610 50,755 47,582 Securities gains 15 1,357 - 76
Slide 42: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible Common Equity $ in thousands 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Actual shareholders' equity (GAAP) $ 2,132,733 $ 2,173,701 $ 2,203,807 $ 2,203,944 $ 2,209,853 Intangibles 969,823 968,225 966,686 965,205 963,781 Actual tangible shareholders' equity
Slide 43: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible Book Value $ 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
Slide 44: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans $ in thousands Q4 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Total loans (GAAP) $ 10,933,647 $ 10,688,408 $ 10,149,242 $ 10,016,824 $ 10,020,914 Less: PPP loans 1,128,703 860,864 246,931 67,462 58,391 Adjusted total loans (non
Slide 45: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued $ in thousands Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Total average loans (GAAP) $ 11,019,505 $ 10,802,991 $ 10,478,121 $ 10,017,742 $ 9,948,610 Less: Average PPP loans 1,252,990 985,561 628,462 126,870 62,72
Slide 46: Investor Inquiries
Investor Inquiries 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 46