Slide 1: First Quarter 2021 Earnings Call
First Quarter 2021 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: $15.6 billion Loans Loans: 10.7 Deposits: 12.7 Equity: 2.2 TN MS 18% 24% YTD Total Revenue(1) AL GA 2% 33% 20% FL 5% 28% Deposits 3% 67% TN 13% MS 38% GA Community Bank Wealth Management 34% Mortgage Insurance AL FL 12% 3% 3 Note: Financi
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 $57.91 million and diluted EPS of $1.02 • Mortgage banking income was $50.73 million, inclusive of a $13.56 million MSR valuation adjustment • Allowance for credit losses to total loans, excluding Paycheck Protection Program (“PPP”) loans, decreased to 1.76%(
Slide 6: Financial Condition
Financial Condition
Slide 7: Total Assets
Total Assets $16 ,000 $15,623 $14,897 $14,930 $15 ,000 $14,809 $14 ,000 $13,901 $13 ,000 $12 ,000 $11 ,000 $10 ,000 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 7 Note: Dollars in millions
Slide 8: Loans and Yields
Loans and Yields 4.93% 4.69% 4.31% 4.24% 4.09% 4.10% 4.24% 4.06% 4.03% 4.01% $10,997 $11,085 $10,933 $10,688 $9,769 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 1-4 Family Mortgage Commercial Mortgage Construction Other* C&I PPP Loan Yield Core Loan Yield** Note: Dollars in millions 8 * Other loans are c
Slide 9: Deposit Mix and Pricing
Deposit Mix and Pricing 0.72% $12,737 $11,846 $11,934 $12,059 $10,412 0.49% 0.40% 0.33% 0.27% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 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 $1,4 00 $1 $1,2 00 $1 $1,0 00 $1 $80 0 $1 $60 0 $1,262 94% 93% 93% $1 92% 88% $40 0 $638 $617 $633 $1 $20 0 $414 $1 $0 $1 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Securities $1,6 00 $1,5 0
Slide 11: Capital Position
Capital Position Regulatory Capital as of March 31, 2021 Capital Highlights • $50 million stock repurchase program in effect until October 2021. • Consistent dividend payment history; including through the 2008 financial crisis and the pandemic. • Callable subordinated debt in 2021: • July 2021 - $1
Slide 12: Capital Ratios
Capital Ratios Strong Capital Position Minimum to be Well Ratio 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Capitalized Tangible Common 8.48% 7.97% 8.19% 8.33% 8.23% N/A Equity* Leverage 9.90 9.12 9.17 9.37 9.49 5.00% Tier 1 Risk Based 11.63 11.69 11.79 11.91 12.00 8.00 Total Risk Based 13.44 13.72 14.8
Slide 13: Asset Quality
CORPORATION Asset Quality
Slide 14: Asset Quality
Asset Quality Loans 30-89 Days Past Due/ Classified Loans/Total Loans(1) Total Loans(1) $300,000 4.00% $100,000 2.00% 2.33% $250,000 3.00% $75,000 1.50% $200,000 $150,000 2.00% $50,000 1.00% $100,000 $25,000 0.22% 0.50% 1.00% $50,000 $- 0.00% $- 0.00% ($ in thousands) 1Q 2Q 3Q 4Q 1Q ($ in thousands)
Slide 15: Asset Quality
Asset Quality NPAs/Total Assets(1) Net Charge-offs/Average Loans(1) $150,000 3.00% $20,000 0.40% $125,000 2.50% $15,000 0.30% $100,000 2.00% $75,000 1.50% $10,000 0.20% 0.42% 0.13% $50,000 1.00% $5,000 0.10% $25,000 0.50% $- 0.00% $- 0.00% ($ in thousands) ($ in thousands) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q
Slide 16: Asset Quality
Asset Quality Allowance/Total Loans Allowance/Nonperforming Loans $180,000 1.76% 2.00% $180,000 309% 500% $160,000 $160,000 $140,000 $140,000 400% 1.50% $120,000 $120,000 300% $100,000 $100,000 1.00% $80,000 $80,000 200% $60,000 $60,000 $40,000 0.50% $40,000 100% $20,000 $20,000 $- 0.00% $- 0% ($ in
Slide 17: ACL Summary
ACL Summary 12/31/2020 3/31/2021 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 $ 37,592 2.71 Lease Financing Receivables 1,624 2.14 1,546 2.05 Real Estate - 1-4 Family Mortgage 32,165 1.19 31
Slide 18: Profitability
RENASANT CORPORATION Profitability
Slide 19: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 1.79% 1.68% 1.66% 1.53% 1.34% $65.6 $63.2 $62.3 $57.4 $45.0 $57.9 $30.0 $31.5 $20.1 $2.0 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net Income Adj. PPNR (non-GAAP) PAdj. PPNR /Avg. Assets (non-GAAP) Note: Dollars in millions *Adjusted Pre-Provision Net R
Slide 20: Diluted Earnings per Share and Diluted Earnings per Share Adjusted
Diluted Earnings per Share and Diluted Earnings per Share Adjusted* $1.20 $1.02 $1.00 $.85 $0.80 $.68 $0.60 $.56 $.52 $.53 $.53 $0.40 $.36 $.20 $0.20 $.04 $- 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 EPS (GAAP) EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial me
Slide 21: 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% 14.00% 13.52% 1.29% 1.20% 12.00% 11.01% 10.81% 10.81% 1.02% 1.00% 10.00% 0.84% 0.80% 0.80% 0.79% 0.80% 8.00% 5.63% 5.88% 0.60% 0.55% 6.00% 4.41% 3.85% 0.40% 0.33% 4.00% 0.
Slide 22: Core Net Interest Income (FTE) & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 3.75% 3.38% 3.35% 3.37% 3.56% 3.29% 3.26% 3.23% 3.22% 3.12% $108.3 $110.0 $111.3 $107.5 $107.9 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Intere
Slide 23: Noninterest Income
Noninterest Income Mortgage banking income $81,037 ($ in thousands) 1Q20 4Q20 1Q21 $70,928 Gain on sales of loans, net $ 21,782 $ 36,080 $ 33,901 $64,170 $62,864 Fees, net 2,919 5,318 4,902 Mortgage servicing income, net 405 (3,606) (1,631) MSR valuation adjustment (9,571) 1,968 13,561 $37,570 Mortg
Slide 24: Efficiency Ratio
Efficiency Ratio 79% 69% 69% 71% 65% 63% 64% 64% 61% 60% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Efficiency Ratio (GAAP) Adjusted Efficiency Ratio (non-GAAP)* Note: Dollars in millions *Adjusted Efficiency Ratio is a non-GAAP financial measure. See slide 33 in the appendix for a description of exclu
Slide 25: Appendix
Appendix
Slide 26: COVID-19 Credit Impact Update
COVID-19 Credit Impact Update • Identified Hospitality and Senior Housing as more sensitive to the negative impacts of COVID-19 as of March 31, 2021 Portfolio Percentage of Percentage of Percentage of Percentage of Percentage of Loan Portfolio Total Loan Portfolio Portfolio in Portfolio Portfolio Am
Slide 27: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net income (GAAP) $ 2,008 $ 20,130 $ 29,992 $ 31,521 $ 57,908 Income taxes 773 4,637 7,612 6,818 16,842 Provision for credit losses (including unfunded commitments) 29,750
Slide 28: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net income (GAAP) $ 2,008 $ 20,130 $ 29,992 $ 31,521 $ 57,908 Debt prepayment penalties - 90 28 3 - MSR valuation adjustment 9,571 4,951 (828) (1,968) (13,5
Slide 29: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Diluted Earnings Per Share $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net income (GAAP) $ 2,008 $ 20,130 $ 29,992 $ 31,521 $ 57,908 Debt prepayment penalties - 90 28 3 - MSR valuation adjustment 9,571 4,951 (828) (1,968) (13,561) Restructuring charg
Slide 30: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) $ in thousands 1Q20 2Q20 3Q20 4Q20 1Q 2021 Net income (GAAP) $ 2,008 $ 20,130 $ 29,992 $ 31,521 $ 57,908 Debt prepayment penalties - 90 28 3 - MSR valuation adjustment 9,571 4,951 (828) (1,968) (13,561) Restru
Slide 31: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net interest income (FTE) (GAAP) $ 108,316 $ 107,457 $ 107,885 $ 110,024 $ 111,264 Less: Net interest income collected on problem loans 218 384 28
Slide 32: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Loan Yield $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Loan interest income (FTE) (GAAP) $ 118,741 $ 113,727 $ 112,764 $ 113,457 $ 113,072 Less: Net interest income collected on problem loans 218 384 282 128 2,180 Accretable yield recognized on
Slide 33: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net interest income (FTE) (GAAP) $ 108,316 $ 107,457 $ 107,885 $ 110,024 $ 111,264 Total noninterest income (GAAP) 37,570 64,170 70,928 62,864 81,037 Securities gains (losses) - 31
Slide 34: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible Common Equity and Tangible Book Value $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Actual shareholders' equity (GAAP) $ 2,070,512 $ 2,082,946 $ 2,104,300 $ 2,132,578 $ 2,173,701 Intangibles 975,048 973,214 971,481 969,823 968,225 Actual tangi
Slide 35: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans $ in thousands Q1 2020 Q2 2020 Q3 2020 Q4 2020 1Q 2021 Total loans (GAAP) $ 9,769,377 $ 10,997,304 $ 11,084,738 $ 10,933,647 $ 10,688,408 Less: PPP loans - 1,281,278 1,307,972 1,128,703 860,864 Adjusted total loans (non-
Slide 36: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued $ in thousands Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Total average loans (GAAP) $ 9,687,285 $ 10,616,147 $ 11,041,684 $ 11,019,505 $ 10,802,991 Less: Average PPP loans - 866,078 1,305,229 1,252,990 985,561 A
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