Slide 1: Fourth Quarter 2020 Investor Presentation
Fourth Quarter 2020 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: $14.9 billion Loans Loans: 10.9 Deposits: 12.1 Equity: 2.1 TN MS 20% 24% YTD Total Revenue(1) AL GA 2% 19% 33% FL 4% 24% Deposits 3% 71% TN 13% MS 38% GA Community Bank Wealth Management 34% Mortgage Insurance AL FL 12% 3% 4 Note: Financi
Slide 5: Renasant Footprint
Renasant Footprint Over 200 banking, lending, wealth management and insurance offices Winston-Salem Nashville Knoxville 81 Greensboro 95 40 TENNESSEE Raleigh 77 ARKANSAS 24 75 Memphis Charlotte NORTH CAROLINA Chattanooga Greenville 40 Huntsville 85 Tupelo 65 Columbia Wilmington Birmingham 95 Atlanta
Slide 6: Fourth Quarter Highlights
Fourth Quarter Highlights • Adjusted Pre-Provision Net Revenue (1) was $57.39 million, with net income of $31.52 million • Mortgage banking income was $39.76 million • Incurred $7.37 million in restructuring charges related to efficiency initiatives to better align our workforce and branch network a
Slide 7: Financial Condition
\GRENASANT CORPORATION Financial Condition
Slide 8: Balance Sheet Growth
Balance Sheet Growth Total Assets Total Loans excluding Loans Held for Sale $16,000 $14,000 $12,000 $10,933 12000 $12,000 $10,000 $1,129 PPP 1 10000 $10,000 $8,000 8000 $14,930 $8,000 $6,000 $13,401 6000 $12,935 $9,804 $6,000 $9,083 $9,690 $9,830 $7,620 $8,700 $4,000 4000 $6,203 $4,000 $2,000 2000 $
Slide 9: Tangible Book Value Per Share
Tangible Book Value Per Share* $20.69 $20.20 $18.21 $17.83 $16.65 $13.95 $13.13 $11.51 2013 2014 2015 2016 2017 2018 2019 2020 9 *Tangible Book Value Per Share is a non-GAAP financial measure. See slide 42 in the appendix for descriptions of exclusions and reconciliations of this non-GAAP financial
Slide 10: Loans and Yields
Loans and Yields 5.11% 4.93% 4.82% 4.31% 4.69% 4.09% 4.10% 4.24% 4.06% 4.03% $10,997 $11,085 $10,933 $9,690 $9,769 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1-4 Family Mortgage Commercial Mortgage Construction Other* C&I PPP Loan Yield Core Loan Yield** Note: Dollars in millions 10 * Other loans are c
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio Highlights as of December 31, 2020 At December 31, 2020, loans held for investment totaled $10.9 billion • Legacy of proactive portfolio management and conservative credit underwriting • Granular loan portfolio: o Average loan size is approximately $113,000
Slide 12: Diversified Commercial Loan Portfolio
Diversified Commercial Loan Portfolio $7.04 Billion(1) of Commercial Loans Industries < 3% of Construction, $704, 10% Portfolio, $1,042, 15% Transportation and Warehousing, $251, 3% Retail Trade, $791, 11% C-Store, $235, 3% Restaurants & Food Services, $252, 4% Real Estate and Rental and Leasing, Fi
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 Total Bank Risk Based Capital Total Bank Risk Based Capital 100% 300% 83% 83% 81% 78% 79% 78% 250% 80% 76% 73% 200% 60% 150% 40% 100% 20% 50% 0% 0% 13
Slide 14: Deposit Mix and Pricing
Deposit Mix and Pricing 0.76% 0.72% $11,846 $11,934 $12,060 $10,213 $10,412 0.49% 0.40% 0.33% 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 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 2019 2020 Deposits as of December 31, 2020 ($12.1 Billion) Noninterest-bearing demand - - Interest-bearing demand 0.86% 0.45% Savings 0.19% 0.10% Time deposits 1.71% 1.50% Borrowed funds 4.17% 2.26% Total Cost of funds 0.93% 0.59% 3% 11% • 97% of total deposits are
Slide 16: Capital Position
Capital Position Regulatory Capital as of December 31, 2020 Capital Highlights • $50 million stock repurchase program in effect until October 2021. • Consistent dividend payment history including through the 2008 financial crisis and COVID-19 pandemic. • In September 2020, the Company issued $100 mi
Slide 17: Capital Ratios
Capital Ratios Ratio Strong4QCapital 2019 Position 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Minimum to be Well Capitalized Tangible Common 9.25% 8.48% 7.97% 8.19% 8.33% N/A Equity* Leverage 10.37 9.90 9.12 9.17 9.37 5.00% Tier 1 Risk Based 12.14 11.63 11.69 11.79 11.91 8.00 Total Risk Based 13.78 13.44 13.72
Slide 18: Dividend History
Dividend History Annually Quarterly $1.00 $0.25 $0.90 $0.80 $0.20 $0.70 $0.60 $0.15 $0.50 $0.40 $0.10 $0.30 $0.20 $0.05 $0.10 $0.00 $0.00 18
Slide 19: Asset Quality
\GRENASANT CORPORATION Asset Quality
Slide 20: 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% 2.41% $250,000 3.00% $75,000 1.50% $200,000 $150,000 2.00% $50,000 1.00% 0.27% $100,000 $25,000 0.50% 1.00% $50,000 $- 0.00% $- 0.00% ($ in thousands) 4Q 1Q 2Q 3Q 4Q ($ in thousands)
Slide 21: 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 0.45% 1.50% $10,000 0.20% $50,000 1.00% $5,000 0.10% $25,000 0.50% 0.04% $- 0.00% $- 0.00% ($ in thousands) ($ in thousands) 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q
Slide 22: Asset Quality
Asset Quality Allowance/Total Loans Allowance/Nonperforming Loans $180,000 2.00% $180,000 500% 1.80% $160,000 $160,000 $140,000 1.50% $140,000 400% $120,000 $120,000 $100,000 300% 1.00% $100,000 $80,000 $80,000 $60,000 200% $60,000 $40,000 0.50% $40,000 100% $20,000 $20,000 $- 0.00% $- 0% ($ in thou
Slide 23: ACL Summary
ACL Summary 1/1/2020 3/31/2020 6/30/2020 9/30/2020 12/31/2020 ACL as a % ACL as a % ACL as a % ACL as a % ACL as a % ($ in thousands) ACL of Loans ACL of Loans ACL of Loans ACL of Loans ACL of Loans SBA Paycheck Protection Program - - - - - - - - - - Commercial, Financial, Agricultural $ 22,009 1.61
Slide 24: Profitability
\GRENASANT CORPORATION Profitability
Slide 25: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre- Provision Net Revenue* 1.79% 1.68% 1.49% 1.53% 1.34% $65.6 $63.2 $57.4 $49.6 $45.0 $38.4 $30.0 $31.5 $20.1 $2.0 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Net Income Adj. PPNR (non-GAAP) Adj. PPNR /Avg. Assets (non-GAAP) Note: Dollars in millions *Adjusted Pre-Provision Net R
Slide 26: Diluted Earnings per Share
Diluted Earnings per Share $0.70 $.67 $.68 $.65 $0.60 $.56 $.52 $.53 $.53 $0.50 $0.40 $.36 $0.30 $.20 $0.20 $0.10 $.04 $- 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 EPS (GAAP) EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial measure. See slide 36 in the appendix
Slide 27: Profitability Ratios
Profitability Ratios Return on Average Tangible Common Equity Return on Average Assets (ROAA) (Adjusted) (ROTCE) 1.40% 16.00% 1.16% 14.00% 13.41% 13.52% 1.20% 1.13% 1.02% 12.00% 1.00% 11.01% 10.81% 0.84% 10.00% 0.80% 0.80% 0.79% 0.80% 8.00% 7.15% 0.60% 0.55% 5.63% 5.88% 6.00% 4.41% 0.40% 0.33% 3.85%
Slide 28: Net Interest Income (FTE) & Net Interest Margin
Net Interest Income (FTE) & Net Interest Margin 3.90% 3.75% 3.38% 3.29% 3.35% 3.66% 3.56% 3.26% 3.23% 3.22% $110.9 $108.3 $107.9 $110.0 $107.5 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Interest Income (
Slide 29: Noninterest Income
Noninterest Income $70,928 $64,170 $62,864 MORTGAGE HIGHLIGHTS 4Q19 3Q20 4Q20 Locked Volume $0.9 bill $1.7 bill $1.4 bill Wholesale % 43 41 41 Retail % 57 59 59 $37,456 $37,570 Purchase % 59 55 50 Refinance % 41 45 50 ($ in thousands) 4Q19 3Q20 4Q20 Gain on sales of loans, net $ 10,438 $ 45,985 $ 36
Slide 30: Efficiency Ratio
Efficiency Ratio 79% 69% 69% 71% 64% 64% 65% 63% 64% 61% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Efficiency Ratio (GAAP) Adjusted Efficiency Ratio (non-GAAP)* Note: Dollars in millions *Adjusted Efficiency Ratio is a non-GAAP financial measure. See slide 40 in the appendix for a description of exclu
Slide 31: Appendix
\GRENASANT CORPORATION Appendix
Slide 32: Loan Deferral Program
Loan Deferral Program • As of December 31, 2020, approximately 1.5% of the total loan portfolio, excluding PPP loans, is under the deferral program Deferrals by Category as of December 31, 2020 Average Balance Deferral Amount Deferred Category ($ in millions) ($ in thousands) Commercial, Financial,
Slide 33: COVID-19 Impacted Portfolios
COVID-19 Impacted Portfolios • Early identification of portfolios that may be more sensitive to COVID-19 related impacts • Proactively reached out to clients to understand the potential impact on their business activities • Identified Hospitality and Healthcare as more sensitive to the negative impa
Slide 34: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Net income (GAAP) $ 38,415 $ 2,008 $ 20,130 $ 29,992 $ 31,521 Income taxes 9,424 773 4,637 7,612 6,818 Provision for credit losses (including unfunded commitments) 2,950 2
Slide 35: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Return on Average Assets (Adjusted) and Adjusted Pre-Provision Net Revenue/Average Assets $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Net income (GAAP) $ 38,415 $ 2,008 $ 20,130 $ 29,992 $ 31,521 Merger and conversion expense 76 - - - - Debt prepayme
Slide 36: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Diluted Earnings Per Share $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Net income (GAAP) $ 38,415 $ 2,008 $ 20,130 $ 29,992 $ 31,521 Merger and conversion expense 76 - - - - Debt prepayment penalties - - 90 28 3 MSR valuation adjustment (1,296) 9,571
Slide 37: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) $ in thousands 4Q19 1Q20 2Q20 3Q20 4Q20 Net income (GAAP) $ 38,415 $ 2,008 $ 20,130 $ 29,992 $ 31,521 Merger and conversion expense 76 - - - - Debt prepayment penalties - - 90 28 3 MSR valuation adjustment (1,
Slide 38: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Net interest income (FTE) (GAAP) $ 110,856 $ 108,316 $ 107,457 $ 107,885 $ 110,024 Less: Net interest income collected on problem loans 152 218 38
Slide 39: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Loan Yield $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Loan interest income (FTE) (GAAP) $ 121,752 $ 118,741 $ 113,727 $ 112,764 $ 113,457 Less: Net interest income collected on problem loans 152 218 384 282 18 Accretable yield recognized on pur
Slide 40: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio $ in thousands Q4 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Net interest income (FTE) (GAAP) $ 110,856 $ 108,316 $ 107,457 $ 107,885 $ 110,024 Total noninterest income (GAAP) 37,456 37,570 64,170 70,928 62,864 Securities gains (losses) - -
Slide 41: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible Common Equity $ in thousands 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Actual shareholders' equity (GAAP) $ 2,125,689 $ 2,070,512 $ 2,082,946 $ 2,104,300 $ 2,132,578 Intangibles 976,943 975,048 973,214 971,481 969,823 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 (except share data) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Total loans (GAAP) $ 9,689,638 $ 9,769,377 $ 10,997,304 $ 11,084,738 $ 10,933,647 Less: PPP loans - - 1,281,278 1,307,972 1,128,703 Adjusted tota
Slide 44: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued $ in thousands (except share data) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Total average loans (GAAP) $ 9,457,658 $ 9,687,285 $ 10,616,147 $ 11,041,684 $ 11,019,505 Less: Average PPP loans - - 866,078 1,305,22
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