Slide 1: Second Quarter 2021 Investor Presentation
Second 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: $16.0 billion Loans Loans: 10.1 Deposits: 13.1 Equity: 2.2 TN MS 18% 24% YTD Total Revenue(1) AL GA 2% 32% 21% FL 5% 22% Deposits 3% 73% TN 13% MS 37% GA Community Bank Wealth Management 35% AL Mortgage Insurance FL 12% 3% 4 Note: Financi
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: Second Quarter Highlights
Second Quarter Highlights • Net income of $40.9 million and diluted EPS of $0.72 • Although mortgage production remained strong during the quarter, mortgage banking income began to normalize as gain on sale margins compressed • As part of the Company’s efficiency initiatives, 7 locations were closed
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 $10,149 120 00 $14 ,000 $10 ,000 $1,129 $247 PPP (1) 100 00 $12 ,000 $8,0 00 800 0 $10 ,000 $8,0 00 $14,930 $16,022 $6,0 00 600 0 $6,0 00 $12,935 $13,401 $9,083 $9,690 $9,804 $9,902 $9,830
Slide 9: Tangible Book Value Per Share
Tangible Book Value Per Share* $21.95 $20.69 $20.20 $18.21 $17.83 $16.65 $13.95 $13.13 $11.51 2013 2014 2015 2016 2017 2018 2019 2020 Q2 2021 9 *Tangible Book Value Per Share is a non-GAAP financial measure. See slide 42 in the appendix for a description of the exclusions and a reconciliation of thi
Slide 10: Loans and Yields
Loans and Yields 4.31% 4.24% 4.24% 4.09% 4.10% 4.24% 4.06% 4.03% 4.01% 3.94% $10,997 $11,085 $10,933 $10,688 $10,149 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 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 June 30, 2021 At June 30, 2021, loans held for investment totaled $10.1 billion • Legacy of proactive portfolio management and conservative credit underwriting • Granular loan portfolio: C&I 13% Other o Average loan size is approximately $11
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio Construction & NOO CRE(1) OO CRE, C&I and Other Commercial(2) School Other OO 1% Warehouse / 6% Office - Non- Medical Industrial Retail 8% Office - 14% 18% Medical 5% Retail 16% Senior C&I Housing Multi-Family 42% 8% 16% Warehouse / Industrial Office - Non- Mini Medical 10
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% 83% 83% 81% 83% 78% 79% 78% 79% 250% 80% 76% 73% 200% 60% 150% 40% 100% 20% 50% 0% 0% 13
Slide 14: Deposit Mix and Pricing
Deposit Mix and Pricing 0.49% $13,115 $12,737 $11,846 $11,934 $12,059 0.40% 0.33% 0.27% 0.24% 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 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 2Q20 1Q21 2Q21 Deposits as of June 30, 2021 ($13.1 Billion) Noninterest-bearing demand - - - Interest-bearing demand 0.43% 0.27% 0.27% Savings 0.09% 0.08% 0.08% Time deposits 1.62% 1.02% 0.88% 3% Borrowed funds 1.73% 3.21% 3.11% 9% Total Cost of funds 0.59% 0.38% 0
Slide 16: Liquidity
Liquidity Cash and Cash Equivalents Average Loans to Average Deposits $1,8 00 $1 $1,6 00 $1,4 00 $1 $1,2 00 $1 $1,0 00 $80 0 $1,606 93% 93% 92% $1,262 $1 $60 0 88% $40 0 81% $617 $633 $1 $20 0 $414 $0 $1 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Securities $2,3
Slide 17: Capital Position
Capital Position Regulatory Capital as of June 30, 2021 Capital Highlights • $50 million stock repurchase program in effect until October 2021 • Consistent dividend payment history, including through the 2008 financial crisis • Callable subordinated debt in 2021: • July 2021 - $15 million 6.50% fixe
Slide 18: Capital Ratios
Capital Ratios Strong Capital Position Minimum to be Well Ratio 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Capitalized Tangible Common 7.97% 8.19% 8.33% 8.23% 8.22% N/A Equity* Leverage 9.12 9.17 9.37 9.49 9.30 5.00% Tier 1 Risk Based 11.69 11.79 11.91 12.00 12.07 8.00 Total Risk Based 13.72 14.89 15.0
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 2.09% 3.00% $75,000 1.50% $200,000 $150,000 2.00% $50,000 1.00% $100,000 0.15% 1.00% $25,000 0.50% $50,000 $- 0.00% $- 0.00% ($ in thousands) 2Q 3Q 4Q 1Q 2Q ($ in thousands) 2Q
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% 0.39% $50,000 1.00% $5,000 0.20% $25,000 0.50% 0.03% $- 0.00% $- 0.00% ($ in thousands) ($ in thousands) 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q
Slide 23: ACL Metrics
ACL Metrics Allowance/Total Loans* Allowance/Nonperforming Loans 1.74% 305% $180,000 2.00% $180,000 500% $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 24: ACL Summary
ACL Summary 12/31/2020 6/30/2021 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 $ 36,994 2.67 Lease Financing Receivables 1,624 2.14 1,511 2.04 Real Estate - 1-4 Family Mortgage 32,165 1.19 31
Slide 25: Loss Absorption Capacity
Loss Absorption Capacity ($ in thousands) 6/30/2021 Allowance for Credit Losses on Loans $ 172,354 Reserve for Unfunded Commitments 20,535 Purchase Accounting Discounts 19,990 Total Loss Absorption Capacity $ 212,879 25 * Allowance to total loans (excluding PPP) is a non-GAAP financial measure. See
Slide 26: Profitability
RENASAN CORPORATION Profitability
Slide 27: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 1.79% 1.68% 1.66% 1.53% $65.6 $63.2 $62.3 1.24% $57.4 $48.8 $57.9 $40.9 $30.0 $31.5 $20.1 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 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 $.68 $0.60 $.56 $.52 $.53 $.53 $0.40 $.36 $0.20 $- 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 EPS (GAAP) EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial measure. See slide 3
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% 1.29% 1.20% 12.00% 11.01% 10.81% 10.81% 1.02% 1.04% 1.04% 1.00% 10.00% 0.84% 0.80% 0.80% 0.79% 0.80% 8.00% 7.40% 5.63% 5.88% 0.60% 0.55% 6.00% 3.85% 0
Slide 30: Core Net Interest Income (FTE) & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 3.38% 3.35% 3.37% 3.29% 3.19% 3.26% 3.23% 3.22% 3.12% 2.92% $110.0 $111.3 $111.2 $107.5 $107.9 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 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 Mortgage banking income $81,037 ($ in thousands) 2Q20 1Q21 2Q21 $70,928 Gain on sales of loans, net $ 46,560 $ 33,901 $ 17,581 $64,170 $62,864 Fees, net 5,309 4,902 4,519 Mortgage servicing loss, net (1,428) (1,631) (1,247) $47,610 MSR valuation adjustment (4,951) 13,561 - Mortgag
Slide 32: Efficiency Ratio
Efficiency Ratio 69% 71% 68% 65% 67% 63% 64% 64% 61% 60% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Efficiency Ratio (GAAP) Adjusted Efficiency Ratio (non-GAAP)* *Adjusted Efficiency Ratio is a non-GAAP financial measure. See slide 40 in the appendix for a description of exclusions and a reconciliation
Slide 33: Appendix
RENASAN CORPORATION Appendix
Slide 34: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net income (GAAP) $ 20,130 $ 29,992 $ 31,521 $ 57,908 $ 40,867 Income taxes 4,637 7,612 6,818 16,842 7,545 Provision for credit losses (including unfunded commitments) 29,
Slide 35: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net income (GAAP) $ 20,130 $ 29,992 $ 31,521 $ 57,908 $ 40,867 Debt prepayment penalties 90 28 3 - - MSR valuation adjustment 4,951 (828) (1,968) (13,561) -
Slide 36: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Diluted Earnings Per Share $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net income (GAAP) $ 20,130 $ 29,992 $ 31,521 $ 57,908 $ 40,867 Debt prepayment penalties 90 28 3 - - MSR valuation adjustment 4,951 (828) (1,968) (13,561) - Restructuring charges
Slide 37: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net income (GAAP) $ 20,130 $ 29,992 $ 31,521 $ 57,908 $ 40,867 Debt prepayment penalties 90 28 3 - - MSR valuation adjustment 4,951 (828) (1,968) (13,561)
Slide 38: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net interest income (FTE) (GAAP) $ 107,457 $ 107,885 $ 110,024 $ 111,264 $ 111,205 Less: Net interest income collected on problem loans 384 282 12
Slide 39: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Loan Yield $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Loan interest income (FTE) (GAAP) $ 113,727 $ 112,764 $ 113,457 $ 113,072 $ 110,785 Less: Net interest income collected on problem loans 384 282 128 2,180 1,339 Accretable yield recognized o
Slide 40: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net interest income (FTE) (GAAP) $ 107,457 $ 107,885 $ 110,024 $ 111,264 $ 111,205 Total noninterest income (GAAP) 64,170 70,928 62,864 81,037 47,610 Securities gains 31 - 15 1,357
Slide 41: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible Common Equity $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Actual shareholders' equity (GAAP) $ 2,082,946 $ 2,104,300 $ 2,132,733 $ 2,173,701 $ 2,203,807 Intangibles 973,214 971,481 969,823 968,225 966,686 Actual tangible shareholders' equity
Slide 42: 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 43: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans $ in thousands Q2 2020 Q3 2020 Q4 2020 1Q 2021 2Q 2021 Total loans (GAAP) $ 10,997,304 $ 11,084,738 $ 10,933,647 $ 10,688,408 $ 10,149,242 Less: PPP loans 1,281,278 1,307,972 1,128,703 860,864 246,931 Adjusted total loan
Slide 44: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued $ in thousands Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Total average loans (GAAP) $ 10,616,147 $ 11,041,684 $ 11,019,505 $ 10,802,991 $ 10,478,121 Less: Average PPP loans 866,078 1,305,229 1,252,990 985,561 62
Slide 45: 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 45