Slide 1: Fourth Quarter 2022 Investor Presentation
Fourth Quarter 2022 Investor Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain various statements about Renasant Corporation (“Renasant,” ”the Company,” “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 Se
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: $17.0 billion Loans Loans: 11.6 TN MS Deposits: 13.5 16% 19% Equity: 2.1 GA AL 29% 28% YTD Total Revenue(1) 4% 1%2% Other FL 1% 7% Deposits TN 93% 12% MS 39% GA 32% Community Banking Wealth Management AL Mortgage Insurance 14% FL 3% 4 Not
Slide 5: Renasant Footprint
Renasant Footprint [QRENASANT CORPORATION — ad ~ _ \ . o Winston-Salem. ot Nashville + Knowille © QGreensboro oS La eo & TENNESSEE Pt Raleigh vy AREANSES Chaotte NORTHCAROLINA Sv wy © Greenville / o y \ (wit i Sombie S—~/ SOUTH CAROLINA /- gt << Charleston e oO O p 6 Savannah @ Branch (157) { @ Loan
Slide 6: Fourth Quarter Highlights
Fourth Quarter Highlights • Net income of $46.3 million with diluted EPS of $0.82 and adjusted diluted EPS* of $0.89 • Net interest margin increased 24 basis points to 3.78% • Completed the acquisition of Republic Business Credit (“RBC”), a factoring and asset- based lending company headquartered in
Slide 7: Financial Condition
[NRENASANT CORPORATION Financial Condition
Slide 8: Balance Sheet Growth
Balance Sheet Growth Total Assets Loans Held for Investment $18 ,000 $16 ,000 $12 ,000 $10,933 120 00 PPP (1) $14 ,000 $10 ,000 $1,129 100 00 $12 ,000 $8,0 00 800 0 $10 ,000 $16,810 $16,988 $14,930 $6,0 00 600 0 $11,578 $8,0 00 $12,935 $13,401 $9,690 $9,804 $10,021 $6,0 00 $4,0 00 $9,083 400 0 $4,0
Slide 9: Tangible Book Value Per Share
Tangible Book Value Per Share* $22.35 $20.69 $20.20 $20.02 $18.21 $17.83 $16.65 $13.95 $13.13 $11.51 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9 *Tangible Book Value Per Share is a non-GAAP financial measure. See slide 44 in the appendix for a description of the exclusions and a reconciliati
Slide 10: Loans and Yields
Loans and Yields 5.19% 4.57% 5.16% 4.12% 4.52% 3.98% 3.88% 3.87% 3.96% 3.82% $11,578 $11,100 $10,305 $10,597 $9,963 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1-4 Family Mortgage Commercial Mortgage Construction Other* C&I Loan Yield Core Loan Yield** Note: Dollars in millions 10 * Other loans are comp
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio Highlights as of December 31, 2022 At December 31, 2022, loans held for investment totaled $11.6 billion • Legacy of proactive portfolio management and conservative credit underwriting • Granular loan portfolio: C&I 14% Other o Avg Loan Size = $224 thousand
Slide 12: Owner Occupied CRE, C&I and Other Commercial Composition
Owner Occupied CRE, C&I and Other Commercial Composition* *No industry included in the 46% of C&I above exceeds 3% of the total loan portfolio 12 Note: Chart excludes PPP loans of $4.8 million
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% 284% 91% 272% 264% 87% 88% 85% 259% 258% 259% 259% 258% 83% 251% 79% 82% 81% 250% 80% 76% 200% 60% 150% 40% 100% 20% 50% 0% 0% 13
Slide 14: CRE Overview
CRE1 Overview CRE Highlights CRE Composition • 37.4% of total loans • 30-89 days past due of 0.28% • Average loan size of $1.9MM • Weighted average LTV of 54.4% • Diversification by size, asset type & geography 1Population = NOO CRE Loans (Construction & Non-Construction) 14
Slide 15: Deposit Mix and Pricing
Deposit Mix and Pricing $13,906 $13,991 $13,764 $13,432 $13,487 0.52% 0.21% 0.18% 0.17% 0.15% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Noninterest-bearing Interest-bearing Savings Time Cost of deposits 15 Note: Dollars in millions
Slide 16: Core Deposit Funding
Core Deposit Funding Mix of Average Deposits 4Q15 4Q19 4Q22 Noninterest-bearing demand 21.36 % 25.52 % 36.03 % Interest-bearing demand* 46.16 46.42 45.13 Savings 8.03 6.46 8.21 Deposits as of December 31, 2022 ($13.5 Billion) Brokered deposits 0.00 0.00 0.70 Time deposits 24.45 21.60 9.93 2% Total 1
Slide 17: Liquidity
Liquidity Cash and Securities to Total Assets Average Loans to Average Deposits 91% $1 $0 27.84% 26.68% $1 2018 -2019 Average Loans to Average Deposits $0 $0 24.24% $1 $0 20.66% $1 $0 20.21% 85% 79% $1 76% 73% 74% $0 $1 $0 $0 $1 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022
Slide 18: Capital Position
Capital Position Regulatory Capital as of December 31, 2022 Capital Highlights • $100 million stock repurchase program is in effect through October 2023; there was no buyback activity in the fourth quarter of 2022 • Consistent dividend payment history, including through the 2008 financial crisis Com
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
[NRENASANT 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% 0.51% $300,000 2.47% 3.00% $50,000 1.00% $25,000 0.50% $250,000 2.50% $- 0.00% $200,000 2.00% ($ in thousands) 4Q 1Q 2Q 3Q 4Q ($ in thousands) 4Q 1Q 2Q 3Q 4Q
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% 0.35% $50,000 1.00% $5,000 0.20% $25,000 0.50% 0.09% $- 0.00% $- 0.00% ($ in thousands) ($ in thousands) 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 20
Slide 23: ACL Metrics
ACL Metrics Allowance/Total Loans Allowance/Nonperforming Loans $220,000 2.00% $220,000 400% 1.66% 338% $210,000 $210,000 1.80% $200,000 $200,000 350% $190,000 1.60% $190,000 $180,000 $180,000 300% $170,000 1.40% $170,000 $160,000 $160,000 250% 1.20% $150,000 $150,000 $140,000 1.00% $140,000 200% ($
Slide 24: ACL Summary
ACL Summary 9/30/2022 12/31/2022 ACL as a % ACL as a % ($ in thousands) ACL of Loans ACL of Loans Commercial, Financial, Agricultural $ 30,594 2.02 $ 44,451 2.65 Lease Financing Receivables 2,314 2.24 2,463 2.15 Real Estate - 1-4 Family Mortgage 43,414 1.39 44,520 1.39 Real Estate - Commercial Mortg
Slide 25: Loss Absorption Capacity
Loss Absorption Capacity ($ in thousands) 12/31/2022 Allowance for Credit Losses on Loans $ 192,090 Reserve for Unfunded Commitments 20,118 Purchase Accounting Discounts 12,770 Total Loss Absorption Capacity $ 224,978 25
Slide 26: ACL Activity
ACL Activity *PCD Loans represent loans acquired from RBC with more than insignificant credit deterioration at the date of acquisition. 26
Slide 27: Profitability
[NRENASANT CORPORATION Profitability
Slide 28: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* $72.2 $67.0 $54.2 1.73% 1.60% $49.2 $42.7 1.31% 1.19% 1.04% $46.6 $46.3 $37.1 $39.7 $33.5 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Net Income Adj. PPNR (non-GAAP)* PAdj. PPNR /Avg. Assets (non-GAAP)* Note: Dollars in millions *Adjusted Pre-Provision Ne
Slide 29: Diluted Earnings per Share Reported and Adjusted
Diluted Earnings per Share Reported and Adjusted* $1.00 $.89 $.83 $.82 $.79 $0.80 $.71 $.72 $.68 $.66 $.60 $.60 $0.60 $0.40 $0.20 $- 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Diluted EPS (GAAP) Diluted EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial measure. Se
Slide 30: Profitability Ratios
Profitability Ratios Return on Average Assets (ROAA) Return on Average Equity (ROE) 1.40% 20.00% 1.20% 17.35% 1.20% 1.11% 1.11% 1.05% 16.00% 14.87% 1.00% 0.96% 0.98% 13.81% 0.92% 0.89% 12.31% 0.81% 0.82% 12.00% 10.99% 0.80% 8.50% 8.58% 0.60% 8.00% 7.31% 6.59% 6.05% 0.40% 4.00% 0.20% 0.00% 0.00% 4Q 2
Slide 31: Net Interest Income (FTE) & Net Interest Margin
Net Interest Income (FTE) & Net Interest Margin 3.78% 3.54% 3.76% 3.11% 3.50% 2.81% 2.76% $140.6 3.00% $132.4 2.73% 2.71% $115.3 $103.3 $101.4 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Interest Income (
Slide 32: Noninterest Income
Noninterest Income Q4 2022 - Noninterest Income $47,582 Contribution $41,186 Other $37,458 $37,214 17% $33,395 Service Charges 31% Mortgage Banking 15% Fees and Wealth Commissions Management 13% 16% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Insurance 8% Service Charges Fees and Commissions Insurance W
Slide 33: Mortgage Banking
Mortgage Banking Mortgage banking income Mortgage Mix ($ in thousands) 4Q21 3Q22 4Q22 (in %) 4Q21 3Q22 4Q22 Gain on sales of loans, net $ 10,801 $ 5,263 $ 1,003 Wholesale 38 34 35 Fees, net 4,320 2,405 1,849 Retail 62 66 65 Mortgage servicing (loss) income, net (395) 5,007 2,318 Purchase 65 81 82 Mo
Slide 34: Noninterest Expense and Efficiency Ratio
Noninterest Expense and Efficiency Ratio ($ in thousands) 3Q22 4Q22 Change Q4 2022 – Noninterest Expense Mix Salaries and employee benefits $ 66,463 $ 67,372 $ 909 Data processing 3,526 3,521 (5) Other 19% Net occupancy and equipment 11,266 11,122 (144) Intangible amortization 1,251 1,195 (56) Intan
Slide 35: Appendix
[NRENASANT CORPORATION Appendix
Slide 36: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue $ in thousands 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Net income (GAAP) $ 37,054 $ 33,547 $ 39,678 $ 46,567 $ 46,276 Income taxes 11,363 7,935 10,857 13,563 12,885 Provision for credit losses (including unfunded commitments)
Slide 37: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets $ in thousands 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Net income (GAAP) $ 37,054 $ 33,547 $ 39,678 $ 46,567 $ 46,276 Merger and conversion expense - 687 - - 1,100 Debt prepayment penalties 6,123 - - - - Swap te
Slide 38: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Diluted Earnings Per Share $ in thousands 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Net income (GAAP) $ 37,054 $ 33,547 $ 39,678 $ 46,567 $ 46,276 Merger and conversion expense - 687 - - 1,100 Debt prepayment penalties 6,123 - - - - Swap termination gain
Slide 39: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) $ in thousands 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Net income (GAAP) $ 37,054 $ 33,547 $ 39,678 $ 46,567 $ 46,276 Merger and conversion expense - 687 - - 1,100 Debt prepayment penalties 6,123 - - - - Swap
Slide 40: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin $ in thousands 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Net interest income (FTE) (GAAP) $ 103,249 $ 101,383 $ 115,321 $ 132,435 $ 140,565 Less: Net interest income collected on problem loans 578 434 2,
Slide 41: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Core Loan Yield $ in thousands 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Loan interest income (FTE) (GAAP) $ 99,670 $ 97,001 $ 107,612 $ 124,614 $ 147,519 Less: Net interest income collected on problem loans 578 434 2,276 78 161 Accretable yield recognized on pur
Slide 42: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio $ in thousands 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Net interest income (FTE) (GAAP) $ 103,249 $ 101,383 $ 115,321 $ 132,435 $ 140,565 Total noninterest income (GAAP) 47,582 37,458 37,214 41,186 33,395 Securities gains 49 - - - - Sw
Slide 43: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible Common Equity $ in thousands 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Shareholders' equity (GAAP) $ 2,209,853 $ 2,137,642 $ 2,116,877 $ 2,092,281 $ 2,136,016 Intangibles 963,781 969,022 967,713 966,461 1,015,884 Tangible shareholders' equity (non-GAAP)
Slide 44: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible Book Value $ in thousands (except share data) 2013 2014 2015 2016 2017 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 Tangible shareholders' equity (non-GAAP) $ 36
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