Slide 1: Fourth Quarter 2021 Investor Presentation
Fourth 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
Overview Note: Financial data as of December 31, 2021 (1) Total revenue is calculated as net interest income plus noninterest income. Company Snapshot Loans and Deposits by State Assets: $16.8 billion Loans: 10.0 Deposits: 13.9 Equity: 2.2 4 MS 23% AL 23% FL 6% GA 31% TN 17% Loans MS 36% AL 14%FL 3%
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: Fourth Quarter Highlights
Fourth Quarter Highlights 6(1) ) Adjusted diluted EPS, allowance for credit losses to loans, excluding PPP loans, and loans, excluding PPP loans, are non-GAAP financial measures.. See slides 37 and 44 in the appendix for a reconciliation of these non-GAAP financial measures to GAAP. • Net income of
Slide 7: Financial Condition
[NRENASANT CORPORATION Financial Condition
Slide 8: Balance Sheet Growth
$1,515 $2,044 $2,126 $2,133 $2,210 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 2017 2018 2019 2020 2021 $7,921 $10,129 $10,213 $12,060 $13,906 $0 $2,000 $4,000 $6,000 $8,000 $10 ,000 $12 ,000 $14 ,000 $16 ,000 2017 2018 2019 2020 2021 $7,620 $9,083 $9,690 $10,933 $10,021 $9,804 $9,963 $1,129 $5
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 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 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. 14% NOO CRE 29% OO CRE 15% C&I 13% Other 2% *Chart excludes PPP loans of $58 million At December 31, 2021, loans held for investment totaled $10.0 billion 11 • Legacy of proactive portfolio management and conserv
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio 12 Note: Chart excludes PPP loans of $58 million 1NOO CRE Construction loans have been restated to their respective permanent collateral type 2 No industry included in the 44% of C&I above exceeds 3% of the total loan portfolio Construction & NOO CRE1 OO CRE, C&I and Other
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% 83% 87% 82% 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 $12,059 $12,737 $13,115 $13,255 $13,906 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
Slide 15: Core Deposit Funding
Core Deposit Funding 34% 48% 8% 8% 2% Noninterest-bearing Interest-bearing Savings Time < $250,000 Time > $250,000 Cost of Funds 4Q20 3Q21 4Q21 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% Borrowed funds 3.05% 3.
Slide 16: Liquidity
Liquidity 16 Note: Dollars in millions $633 $1,262 $1,605 $1,476 $1,878 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Cash and Cash Equivalents $1,343 $1,536 $2,164 $2,545 $2,387 $416 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Q4 2020 Q1 2021 Q
Slide 17: Capital Position
Capital Position 17 Tier 1 $1,422 Tier 2 $475 Regulatory Capital as of December 31, 2021 • 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 activi
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. Capital Ratios Ratio 4Q 2020 1Q 202
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
Asset Quality 21* The ratio of loans 30-89 days past due to total loans (excluding PPP loans) and the ratio of classified loans to total loans (excluding PPP loans) are non-GAAP financial measures. See slide 44 in the appendix for a reconciliation of these non-GAAP financial measures to GAAP. 1.61%
Slide 22: Asset Quality
Asset Quality 22* Nonperforming assets to total assets (excluding PPP loans) and net charge-offs to average loans (excluding PPP loans) are non-GAAP financial measures. See slide 45 in the appendix for a reconciliation of these non-GAAP financial measures to GAAP. 0.32% 0.00% 0.50% 1.00% 1.50% 2.00%
Slide 23: ACL Metrics
ACL Metrics 23* Allowance for credit losses to total loans (excluding PPP loans) is a non-GAAP financial measure. See slide 44 in the appendix for a reconciliation of this non-GAAP financial measure to GAAP. 1.65% 1.60% 1.65% 1.70% 1.75% 1.80% 1.85% 1.90% $140,000 $150,000 $160,000 $170,000 $180,000
Slide 24: ACL Summary
ACL Summary 24* Allowance for credit losses to total loans (excluding PPP loans) is a non-GAAP financial measure. See slide 44 in the appendix for a reconciliation of this non-GAAP financial measure to GAAP. ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans SBA Paycheck Protection Pro
Slide 25: Loss Absorption Capacity
Loss Absorption Capacity 25 * Allowance to total loans (excluding PPP loans) is a non-GAAP financial measure. See slide 44 in the appendix for a reconciliation of this non-GAAP financial measure to GAAP. ($ in thousands) Allowance for Credit Losses on Loans 164,171$ Reserve for Unfunded Commitments
Slide 26: Profitability
[NRENASANT CORPORATION Profitability
Slide 27: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 27 Net Income P Adj. PPNR (non-GAAP)* Adj. PPNR /Avg. Assets (non-GAAP)* Note: Dollars in millions *Adjusted Pre-Provision Net Revenue and Adjusted Pre-Provision Net Revenue/Average Assets are non-GAAP financial measures. See slides 35 and 36 in the a
Slide 28: Diluted Earnings per Share Reported and Adjusted
Diluted Earnings per Share Reported and Adjusted* 28* Diluted earnings per share (adjusted) is a non-GAAP financial measure. See slide 37 in the appendix for a description of exclusions and a reconciliation of this non-GAAP financial measure to GAAP. $.56 $1.02 $.72 $.71 $.66$.68 $.85 $.73 $.71 $.68
Slide 29: Profitability Ratios
Profitability Ratios 29 * ROAA (Adjusted) and ROTCE (Adjusted) are non-GAAP financial measures. See slides 36 and 38 in the appendix for a description of the exclusions and a reconciliation of these non-GAAP financial measures to GAAP. Return on Average Equity (ROE)Return on Average Assets (ROAA) 5.
Slide 30: Core Net Interest Income & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 30 Note: Dollars in millions *Core Net Interest Income (FTE) and Core Net Interest Margin are non-GAAP financial measures. See slide 39 in the appendix for a description of exclusions and a reconciliation of these non-GAAP financial measures
Slide 31: Noninterest Income Contribution
Note: Dollars in thousands $62,864 $81,037 $47,610 $50,755 $47,582 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Service Charges Fees and Commissions Insurance Wealth Management Mortgage Banking Securities Gains Other Noninterest Income 31 Service Charges 21% Fees and Commissions 8% Insurance 5%Wealth Man
Slide 32: Mortgage Banking
Mortgage Banking 32 Mortgage MixMortgage banking income Gain on sale margin* *Gain on sale margin excludes pipeline fair value adjustments included in “Gain on sales of loans, net” in the table above. ($ in thousands) 4Q20 3Q21 4Q21 Gain on sales of loans, net 36,080$ 20,116$ 10,801$ Fees, net 5,318
Slide 33: Noninterest Expense and Efficiency Ratio
Noninterest Expense and Efficiency Ratio 33 Salaries and employee benefits 62% Data processing 5% Net occupancy and equipment 11% Intangible amortization 2% Debt prepayment penalties 6% Other 14% Q4 2021 – Noninterest Expense Mix($ in thousands) 3Q21 4Q21 Change Salaries and employee benefits 69,115
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 $ 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) 11,
Slide 36: Adjusted PPNR/Average Assets Reconciliation
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets 36 $ 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 ad
Slide 37: Adjusted Diluted Earnings Per Share Reconciliation
Reconciliation of Non-GAAP Disclosures 37 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 (1,968
Slide 38: Return on Average Tangible Common Equity Reconciliation
Reconciliation of Non-GAAP Disclosures 38 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 a
Slide 39: Core Net Interest Income and Margin Reconciliation
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin 39 $ 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 1,
Slide 40: Core Loan Yield Reconciliation
Reconciliation of Non-GAAP Disclosures Core Loan Yield 40 $ 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 p
Slide 41: Adjusted Efficiency Ratio Reconciliation
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio 41 $ 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 - 764
Slide 42: Tangible Common Equity Reconciliation
Reconciliation of Non-GAAP Disclosures Tangible Common Equity 42 $ 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: Tangible Book Value Reconciliation
Reconciliation of Non-GAAP Disclosures Tangible Book Value 43 $ 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 44: Asset Quality Ratios excluding PPP Loans
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans 44 $ 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-G
Slide 45: Asset Quality Ratios excluding PPP Loans, continued
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued 45 $ 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 62,726
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