Slide 1: First Quarter 2022 Investor Presentation
First Quarter 2022 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: $16.9 billion Loans Loans: 10.3 Deposits: 14.0 Equity: 2.1 TN MS 17% 23% YTD Total Revenue(1) GA AL 30% 10% 2% 24% 5% FL 6% Deposits TN 83% 13% MS 36% GA Community Banking Wealth Management 34% AL Mortgage Insurance FL 14% 3% 4 Note: Fina
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: First Quarter Highlights
First Quarter Highlights • Net income of $33.5 million with diluted EPS of $0.60 • Completed the acquisition of Southeastern Commercial Finance, LLC, an asset-based lending company headquartered in Birmingham, AL, on March 1, 2022, which added $28.1 million in loans on the date of acquisition • Allo
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 $10,021 $10,313 120 00 $14 ,000 $1,129 $58 $8 PPP (1) $10 ,000 100 00 $12 ,000 $8,0 00 800 0 $10 ,000 $16,810 $16,864 $14,930 $6,0 00 600 0 $8,0 00 $6,0 00 $12,935 $13,401 $9,083 $9,690 $9,
Slide 9: Tangible Book Value Per Share
Tangible Book Value Per Share* $22.35 $20.69 $20.91 $20.20 $18.21 $17.83 $16.65 $13.95 $13.13 $11.51 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 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 reconcili
Slide 10: Loans and Yields
Loans and Yields 4.24% 4.24% 4.11% 3.98% 3.88% 4.01% 3.94% 3.89% 3.87% 3.82% $10,688 $10,313 $10,149 $10,017 $10,021 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 1-4 Family Mortgage Commercial Mortgage Construction Other* C&I Paycheck Protection Program ("PPP") Loan Yield Core Loan Yield** Note: Dollars
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio Highlights as of March 31, 2022 At March 31, 2022, loans held for investment totaled $10.3 billion • Legacy of proactive portfolio management and conservative credit underwriting • Granular loan portfolio: C&I 14% Other o Average loan balance outstanding is
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio 1NOO CRE Construction loans have been restated to their respective permanent collateral type 2No industry included in the 46% of C&I above exceeds 3% of the total loan portfolio Note: Chart excludes PPP loans of $8.4 million 12
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% 87% 88% 83% 82% 81% 250% 78% 79% 80% 76% 73% 200% 60% 150% 40% 100% 20% 50% 0% 0% 13
Slide 14: Deposit Mix and Pricing
Deposit Mix and Pricing $13,906 $13,991 $13,115 $13,255 $12,737 0.27% 0.24% 0.21% 0.18% 0.17% 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Noninterest-bearing Interest-bearing Savings Time Cost of deposits 14 Note: Dollars in millions
Slide 15: Core Deposit Funding
Core Deposit Funding Deposits as of March 31, 2022 ($14.0 Billion) 2% Cost of Funds 1Q21 4Q21 1Q22 7% Noninterest-bearing demand - - - 8% Interest-bearing demand 0.27% 0.21% 0.22% 34% Savings 0.08% 0.06% 0.05% Time deposits 1.02% 0.67% 0.55% Borrowed funds 3.21% 4.03% 4.08% Total Cost of funds 0.38%
Slide 16: Liquidity
Liquidity Cash and Cash Equivalents Average Loans to Average Deposits $1 $2,0 00 $1,8 00 $1 $1,6 00 $1,4 00 $1 $1,2 00 $1,878 88% $1 $1,0 00 $80 0 $1,605 $1,476 $1,607 81% $1,262 $1 76% $60 0 $40 0 73% 74% $1 $20 0 $0 $1 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Slide 17: Capital Position
Capital Position Regulatory Capital as of March 31, 2022 Capital Highlights • $50 million stock repurchase program will remain in effect through October 2022; however, no buyback activity in the first quarter of 2022 • Consistent dividend payment history, including through the 2008 financial crisis
Slide 18: Capital Ratios
Capital Ratios Strong Capital Position Minimum to be Well Ratio 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Capitalized (1) Tangible Common 8.23% 8.22% 8.15% 7.86% 7.35% N/A Equity* Leverage 9.49 9.30 9.18 9.15 9.00 5.00% Tier 1 Risk Based 12.00 12.07 11.94 12.10 11.67 8.50 Total Risk Based 15.09 15.11
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/ Criticized Loans/Total Loans* Total Loans* $400,000 4.00% $100,000 2.00% $350,000 3.50% $75,000 1.50% $300,000 2.47% 3.00% $50,000 1.00% 0.30% $25,000 0.50% $250,000 2.50% $- 0.00% $200,000 2.00% ($ in thousands) 1Q 2Q 3Q 4Q 1Q ($ in thousands) 1Q 2Q 3Q 4Q 1Q
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% 0.32% $50,000 1.00% $5,000 0.20% $25,000 0.50% 0.03% $- 0.00% $- 0.00% ($ in thousands) ($ in thousands) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q
Slide 23: ACL Metrics
ACL Metrics Allowance/Total Loans* Allowance/Nonperforming Loans $180,000 1.62% 2.00% $180,000 400% 1.80% 319% $170,000 $170,000 350% 1.60% $160,000 $160,000 300% 1.40% $150,000 $150,000 250% 1.20% $140,000 1.00% $140,000 200% ($ in thousands) ($ in thousands) 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2021 2021
Slide 24: ACL Summary
ACL Summary 12/31/2021 3/31/2022 ACL as a % ACL as a % ($ in thousands) ACL of Loans ACL of Loans SBA Paycheck Protection Program - - - - Commercial, Financial, Agricultural $ 33,922 2.49 $ 33,606 2.32 Lease Financing Receivables 1,486 1.95 1,582 1.76 Real Estate - 1-4 Family Mortgage 32,356 1.19 36
Slide 25: Loss Absorption Capacity
Loss Absorption Capacity ($ in thousands) 3/31/2022 Allowance for Credit Losses on Loans $ 166,468 Reserve for Unfunded Commitments 19,485 Purchase Accounting Discounts 14,102 Total Loss Absorption Capacity $ 200,055 25
Slide 26: Profitability
RENASAN CORPORATION Profitability
Slide 27: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 1.66% $62.3 1.24% 1.23% 1.19% 1.04% $48.8 $50.2 $49.2 $42.7 $57.9 $40.9 $40.1 $37.1 $33.5 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 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 $.71 $.71 $.68 $.66 $.60 $.60 $0.60 $0.40 $0.20 $- 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Diluted EPS (GAAP) Diluted EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial meas
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% 13.64% 14.00% 13.13% 1.29% 12.31% 1.20% 12.00% 10.81% 10.99% 1.04% 1.04% 0.99% 0.99% 1.00% 10.00% 0.89% 0.92% 0.81% 0.82% 0.80% 8.00% 7.40% 7.16% 6.59% 6.05% 0.60% 6.00% 0
Slide 30: Core Net Interest Income (FTE) & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 3.37% 3.19% 2.93% 3.12% 2.81% 2.76% 2.92% 2.76% 2.73% 2.71% $111.3 $111.2 $105.0 $103.3 $101.4 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 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 Q1 2022 – Noninterest Income $81,037 Contribution Other 15% Service Charges $50,755 25% $47,610 $47,582 $37,458 Mortgage Banking 26% Fees and Commissions 11% Wealth Management Insurance 16% 7% 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Service Charges Fees and Commissions • Wealth ma
Slide 32: Mortgage Banking
Mortgage Banking Mortgage banking income Mortgage Mix ($ in thousands) 1Q21 4Q21 1Q22 (in %) 1Q21 4Q21 1Q22 Gain on sales of loans, net $ 33,901 $ 10,801 $ 6,047 Wholesale 43 38 38 Fees, net 4,902 4,320 3,053 Retail 57 62 62 Mortgage servicing income, net (1,631) (395) 533 Purchase 53 65 73 MSR valu
Slide 33: Noninterest Expense and Efficiency Ratio
Noninterest Expense and Efficiency Ratio ($ in thousands) 4Q21 1Q22 Change Q1 2022 – Noninterest Expense Mix Salaries and employee benefits $ 62,523 $ 62,239 $ (284) Other 16% Data processing 5,346 4,263 (1,083) Intangible amortization Net occupancy and equipment 11,177 11,276 99 1% Intangible amort
Slide 34: Appendix
RENASAN CORPORATION Appendix
Slide 35: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Net income (GAAP) $ 57,908 $ 40,867 $ 40,063 $ 37,054 $ 33,547 Income taxes 16,842 7,545 11,185 11,363 7,935 Provision for credit losses (including unfunded commitments) -
Slide 36: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Net income (GAAP) $ 57,908 $ 40,867 $ 40,063 $ 37,054 $ 33,547 Merger and conversion expense - - - - 687 Debt prepayment penalties - - - 6,123 - Swap termin
Slide 37: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Diluted Earnings Per Share $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Net income (GAAP) $ 57,908 $ 40,867 $ 40,063 $ 37,054 $ 33,547 Merger and conversion expense - - - - 687 Debt prepayment penalties - - - 6,123 - Swap termination gain - -
Slide 38: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Net income (GAAP) $ 57,908 $ 40,867 $ 40,063 $ 37,054 $ 33,547 Merger and conversion expense - - - - 687 Debt prepayment penalties - - - 6,123 - Swap term
Slide 39: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Net interest income (FTE) (GAAP) $ 111,264 $ 111,205 $ 105,002 $ 103,249 $ 101,383 Less: Net interest income collected on problem loans 2,180 1,33
Slide 40: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Loan Yield $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Loan interest income (FTE) (GAAP) $ 113,072 $ 110,785 $ 103,769 $ 99,670 $ 97,001 Less: Net interest income collected on problem loans 2,180 1,339 316 578 434 Accretable yield recognized on
Slide 41: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Net interest income (FTE) (GAAP) $ 111,264 $ 111,205 $ 105,002 $ 103,249 $ 101,383 Total noninterest income (GAAP) 81,037 47,610 50,755 47,582 37,458 Securities gains 1,357 - 764 4
Slide 42: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible Common Equity $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Actual shareholders' equity (GAAP) $ 2,173,701 $ 2,203,807 $ 2,203,944 $ 2,209,853 $ 2,137,642 Intangibles 968,225 966,686 965,205 963,781 969,022 Actual tangible shareholders' equity
Slide 43: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible Book Value $ in thousands (except share data) 2013 2014 2015 2016 2017 Actual shareholders' equity (GAAP) $ 665,652 $ 711,651 $ 1,036,818 $ 1,232,883 $ 1,514,983 Intangibles 304,330 297,330 474,682 494,608 635,556 Actual tangible shareholders' equity (
Slide 44: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans $ in thousands 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Total loans (GAAP) $ 10,688,408 $ 10,149,242 $ 10,016,824 $ 10,020,914 $ 10,313,459 Less: PPP loans 860,864 246,931 67,462 58,391 8,382 Adjusted total loans (non-GAA
Slide 45: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued $ in thousands Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Total average loans (GAAP) $ 10,802,991 $ 10,478,121 $ 10,017,742 $ 9,948,610 $ 10,108,511 Less: Average PPP loans 985,561 628,462 126,870 62,726 39,506 A
Slide 46: 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 46