Renasant Corporation · NYSE:RNST
Renasant — Q2 2023 Earnings Presentation
34 slides from Renasant's earnings presentation, Jul 25, 2023
Slide 1: Second Quarter 2023 Earnings Call
Second Quarter 2023 Earnings Call
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: Overview
Overview Note: Financial data as of June 30, 2023 (1) Total revenue is calculated as net interest income plus noninterest income. Company Snapshot Loans and Deposits by State Assets: $17.2 billion Loans: 11.9 Deposits: 14.1 Equity: 2.2 3 MS 19% AL 29% FL 7% Other 1% GA 29% TN 15% Loans MS 39% AL 14%
Slide 4: Renasant Footprint
4 Renasant Footprint *Republic Business Credit operates on a nationwide basis. Locations in California, Illinois and Texas are not shown.
Slide 5: Second Quarter Highlights
Second Quarter Highlights 5 • Net income of $28.6 million with diluted EPS of $0.51; adjusted net income (non-GAAP)* of $46.7 million with adjusted diluted EPS (non-GAAP)* of $0.83 • The securities portfolio decreased $584.2 million on a linked quarter basis, primarily due to the sale of available-f
Slide 6: Financial Condition
Financial Condition
Slide 7: Total Assets
Total Assets 7 Note: Dollars in millions $16,618 $16,471 $16,988 $17,474 $17,224 $13 ,500 $14 ,000 $14 ,500 $15 ,000 $15 ,500 $16 ,000 $16 ,500 $17 ,000 $17 ,500 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023
Slide 8: Loans and Yields
Loans and Yields 8 Note: 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. A reconciliation of GAAP to non-GAA
Slide 9: Deposit Mix and Pricing
Deposit Mix and Pricing 9 Note: Dollars in millions *Includes money market $13,764 $13,432 $13,487 $13,912 $14,095 0.15% 0.21% 0.52% 0.99% 1.50% 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Noninterest-bearing Interest-bearing* Savings Brokered Time Cost of deposits
Slide 10: Core Deposit Funding
Core Deposit Funding 27% 45% 7% 13% 8% Noninterest-bearing Interest-bearing* Savings Time Brokered • Average deposit account is $29 thousand; commercial and consumer deposit accounts, excluding time deposit accounts, average approximately $72 thousand and $13 thousand, respectively • Top 20 deposito
Slide 11: Diversified Deposits
Diversified Deposits 11 Note: As of June 30, 2023 Consumer 44% Commercial 34% Brokered 8% Public Funds 14% CommercialCustomer Construction 16% Professional Services 10% Real Estate 14% Financial 10% Manufacturing 7% Trade 12% Health Care 6% Other Services 17% Other 8%
Slide 12: Strong Liquidity Position
Strong Liquidity Position 12 Note: Dollars in millions 77% 83% 86% 85% 85% $1 $1 $1 $1 $1 $1 $1 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Loans to Deposits 24.24% 20.66% 20.21% 20.92% 18.41% $0 $0 $0 $0 $0 $0 $0 $0 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Cash and Securities to Total Assets Average Int
Slide 13: Available Liquidity and Uninsured Deposits
Available Liquidity and Uninsured Deposits 13Note: As of June 30, 2023; dollars in billions (1) Approximately $500 million of the unencumbered securities are placed at the Fed (2) Includes untapped brokered CDs (per internal policy guidelines) and unsecured lines of credit $7.5 $3.9 Available source
Slide 14: Securities Portfolio Composition
Securities Portfolio 14 Composition 33% 39% 10% 14% 3% 1% Agency MBS Agency CMO Agency CMBS Municipal SBA Other • Book value of $2.2 billion or 12.9% of total assets • Taxable equivalent yield of 2.04% • Duration of 4.9 years • 57% of portfolio HTM o 10% of HTM are CRA investments o 23% of HTM are M
Slide 15: Capital Position
Subordinated Notes $336,327 ACL $167,921 Trust Preferred $108,919 Common Equity Tier 1 $1,415,626 1 Capital Position 15 Tier 1 $1,525 Tier 2 $504 Regulatory Capital as of June 30, 2023 • $100 million stock repurchase program is in effect through October 2023; there was no buyback activity in the sec
Slide 16: Asset Quality
[NRENASANT CORPORATION Asset Quality
Slide 17: Asset Quality: Criticized and Past Due Loans
2.32% 2.00% 2.50% 3.00% 3.50% 4.00% $200,000 $250,000 $300,000 $350,000 $400,000 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Criticized Loans/Total Loans Criticized Loans % of Total Loans ($ in thousands) 0.10% 0.00% 0.50% 1.00% 1.50% 2.00% $- $25,000 $50,000 $75,000 $100,000 2Q 2022 3Q 2022 4Q 2022 1Q
Slide 18: Asset Quality: NPAs and Net Charge-offs
0.56% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $- $50,000 $100,000 $150,000 $200,000 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 NPAs/Total Assets Nonperforming loans OREO % of Assets ($ in thousands) 0.13% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% $- $5,000 $10,000 $15,000 $20,000 2Q 2022 3Q 2022 4Q 2022 1Q
Slide 19: ACL Metrics
1.63% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% $140,000 $150,000 $160,000 $170,000 $180,000 $190,000 $200,000 $210,000 $220,000 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Allowance/Total Loans Allowance % of Total Loans ($ in thousands) 212% 100% 150% 200% 250% 300% 350% 400% $140,000 $150,000 $160,000 $170
Slide 20: ACL Summary
ACL Summary ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans Commercial, Financial, Agricultural 44,680$ 2.56 41,283$ 2.38 Lease Financing Receivables 2,437 2.02 2,480 2.03 Real Estate - 1-4 Family Mortgage 45,964 1.41 46,799 1.40 Real Estate - Commercial Mortgage 72,793 1.42 75,335
Slide 21: Loss Absorption Capacity
Loss Absorption Capacity 21 ($ in thousands) 6/30/2023 Allowance for Credit Losses on Loans 194,391$ Reserve for Unfunded Commitments 17,618 Purchase Accounting Discounts 11,005 Total Loss Absorption Capacity 223,014$
Slide 22: Profitability
Profitability
Slide 23: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre- Provision Net Revenue* 23 $39.7 $46.6 $46.3 $46.1 $28.6 $54.2 $67.0 $72.2 $63.9 $59.7 1.31% 1.60% 1.73% 1.51% 1.38% 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Net Income P Adj. PPNR (non-GAAP)* Adj. PPNR /Avg. Assets (non-GAAP)* Note: Dollars in millions *Adjusted Pre-Provisi
Slide 24: Diluted Earnings per Share Reported and Adjusted
Diluted Earnings per Share Reported and Adjusted* 24 $.71 $.83 $.82 $.82 $.51 $.72 $.79 $.89 $.82 $.83 $- $0.20 $0.40 $0.60 $0.80 $1.00 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Diluted EPS (GAAP) Adjusted Diluted EPS (non-GAAP)* * Adjusted Diluted EPS is a non-GAAP financial measure. A reconciliation
Slide 25: Profitability Ratios
Profitability Ratios 25 7.31% 8.50% 8.58% 8.55% 5.18% 13.81% 14.87% 17.35% 16.29% 15.94% 0.00% 4.00% 8.00% 12.00% 16.00% 20.00% 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 ROE (GAAP) ROTCE (Adjusted) (non-GAAP)* *ROAA (Adjusted) and ROTCE (Adjusted) are non-GAAP financial measures. A reconciliation of G
Slide 26: Net Interest Income (FTE) & Net Interest Margin
Net Interest Income (FTE) & Net Interest Margin 26 $115.3 $132.4 $140.6 $138.5 $133.1 3.11% 3.54% 3.78% 3.66% 3.45% 3.00% 3.50% 3.76% 3.63% 3.43% 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Interest Incom
Slide 27: Noninterest Income
Noninterest Income 27 Service Charges 24% Fees and Commissions 13% Insurance 7% Wealth Management 13% Mortgage Banking 25% Other 18% 2Q 2023 – Noninterest Income* Contribution • Noninterest income decreased $20.1 million in the second quarter primarily due to losses of $22.4 million on securities sa
Slide 28: Mortgage Banking
Mortgage Banking 28 Mortgage MixMortgage banking income Gain on sale margin* *Gain on sale margin excludes pipeline fair value adjustments and buyback reserve activity included in “Gain on sales of loans, net” in the table above ($ in thousands) 2Q22 1Q23 2Q23 Gain on sales of loans, net 3,490$ 4,77
Slide 29: Noninterest Expense and Efficiency Ratio
Noninterest Expense and Efficiency Ratio 29 Salaries and employee benefits 65% Data processing 3% Net occupancy and equipment 11% Professional fees 4% Other 17% 2Q 2023 – Noninterest Expense Mix($ in thousands) 1Q23 2Q23 Change Salaries and employee benefits 69,832$ 70,637$ 805$ Data processing 3,63
Slide 30: Appendix
[NRENASANT CORPORATION Appendix
Slide 31: Non-Owner Occupied CRE – Term
Non-Owner Occupied CRE – Term* 31 Composition Highlights 16% 10% 9% 18%9% 11% 18% 9% Warehouse/Industrial Hotels Self Storage Multi-family Medical Office Building Office (non-medical) Retail Senior Housing • 30.0% of total loans • Non-performing loans of 0.50% • 30-89 days past due of 0.02% • Averag
Slide 32: Construction
Construction 32 23% 7% 1% 30% 5% 6% 12% 10% 3%3% 1-4 Family Commercial Owner-Occupied Condominium Multi-family Office Retail Self Storage Warehouse / Industrial Hotels Senior Housing • 11.5% of total loans • No past due or nonaccrual • Average loan size of $1.9 million • Weighted average LTV of 59.0
Slide 33: Office and Retail
Office and Retail 33 Retail • $376 million portfolio • 0.05% past due or nonaccrual • Average loan size of $1.0 million • Weighted average LTV of 58.2% Office • $649 million portfolio • 0.43% past due or nonaccrual • Average loan size of $1.1 million • Weighted average LTV of 57.1% Note: As of June
Slide 34: NAVAN
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