Slide 1: Third Quarter 2023 Investor Presentation
Third Quarter 2023 Investor Presentation
Slide 2: 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 Exchange Act of 1934, as amended.
Slide 3: Overview Snapshot
3 Overview Snapshot Note: As of September 30, 2023 *Republic Business Credit operates on a nationwide basis. Locations in California, Illinois and Texas are not shown. Assets: $17.2 billion Loans: 12.2 Deposits: 14.2 Equity: 2.2 Footprint Loans and Deposits by State MS 18% AL 29% FL 7% Other 1% GA 3
Slide 4: Third Quarter Highlights
4 Third Quarter Highlights • Net income of $41.8 million with diluted EPS of $0.74 • Net interest margin decreased 9 basis points to 3.36% on a linked quarter basis • Loans increased $237.5 million, or 7.9% annualized • Deposits increased $61.7 million; brokered deposits decreased $322.9 million • C
Slide 5: Balance Sheet
5 Balance Sheet $16,471 $16,988 $17,474 $17,224 $17,182 $15 ,800 $16 ,000 $16 ,200 $16 ,400 $16 ,600 $16 ,800 $17 ,000 $17 ,200 $17 ,400 $17 ,600 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Assets $11,105 $11,578 $11,766 $11,931 $12,168 $10 ,400 $10 ,600 $10 ,800 $11 ,000 $11 ,200 $11 ,400 $11 ,600 $11
Slide 6: Core Deposit Funding
6 Core Deposit Funding 26% 47% 7% 15% 5% Noninterest-bearing Interest-bearing* Savings Time Brokered • Average deposit account is $29 thousand; commercial and consumer deposit accounts, excluding time deposit accounts, averaged approximately $75 thousand and $13 thousand, respectively • Top 20 depos
Slide 7: Strong Liquidity
7 Strong Liquidity 83% 86% 85% 85% 86% $1 $1 $1 $1 $1 $1 $1 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Loans to Deposits 20.7% 20.2% 20.9% 18.4% 16.9% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Cash and Securities to Total Assets Average Interest Earning Asset Mix (3Q 2023) 7
Slide 8: Capital
8 Capital • $100 million stock repurchase program is in effect through October 2024; there was no buyback activity in the third quarter of 2023 • Consistent dividend payment history, including through the 2008 financial crisis • Unrealized losses on the HTM portfolio would have a negative impact of
Slide 9: Asset Quality
9 Asset Quality 2.37% 2.47% 2.44% 2.32% 2.27% 2.00% 2.25% 2.50% 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Criticized Loans/Total Loans 0.24% 0.51% 0.43% 0.10% 0.11% 0.0% 0.5% 1.0% 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Loans 30-89 Days Past Due/ Total Loans 0.35% 0.35% 0.46% 0.56% 0.46% 0.0% 0.5% 1.0
Slide 10: Profitability
10 Profitability Note: Dollars in millions except per share amounts. *Adjusted Diluted EPS, Adjusted Net Income, Adjusted Net Interest Income (FTE), PPNR and Adjusted PPNR are non-GAAP financial measures. See slides 22, 23, 24 and 26 in the appendix for a description of exclusions and a reconciliati
Slide 11: Profitability Ratios
11 Profitability Ratios *Adjusted ROAA, Adjusted ROTCE, Pre-Provision Net Revenue/Average Assets, Adjusted Pre-Provision Net Revenue/Average Assets and Adjusted Efficiency Ratio are non-GAAP financial measures. See slides 23, 25 and 28 in the appendix for a description of the exclusions and a reconc
Slide 12: Net Interest Margin (FTE), Loan Yield and Cost of Deposits
12 Net Interest Margin (FTE), Loan Yield and Cost of Deposits 3.54% 3.78% 3.66% 3.45% 3.36%3.50% 3.76% 3.63% 3.43% 3.35% 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Net Interest Margin (FTE) / Adjusted Net Interest Margin (FTE)(non-GAAP)* Net Interest Margin Adjusted Net Interest Margin (FTE)(non-GAAP)*
Slide 13: Noninterest Income / Total Revenue
13 Noninterest Income / Total Revenue Service Charges 25% Fees and Commissions 11% Insurance 8% Wealth Management 16% Mortgage Banking 20% Other 20% Noninterest Income Mix - 3Q 2023 • Noninterest income increased $21.0 million in the third quarter. The Company recognized losses of $22.4 million on s
Slide 14: Noninterest Expense
14 Noninterest Expense Salaries and employee benefits 64% Data processing 4% Net occupancy and equipment 11% Professional fees 3% Other 18% Mix - 3Q 2023($ in thousands) 2Q23 3Q23 Change Salaries and employee benefits 70,637$ 69,458$ (1,179)$ Data processing 3,684 3,907 223 Net occupancy and equipme
Slide 15: Appendix
T Understanding You. CORPORATION Appendix
Slide 16: Available Liquidity and Uninsured Deposits
16 Available Liquidity and Uninsured Deposits Note: As of September 30, 2023; dollars in billions (1) Approximately $285 million of the unencumbered securities are placed at the Fed (2) Includes untapped brokered CDs (per internal policy guidelines) and unsecured lines of credit $7.7 $4.2 Available
Slide 17: Securities Composition
17 Securities Composition Agency MBS 33% Agency CMO 38% Agency CMBS 10% Municipal 14% SBA 3% Other 2% • Represents 13.7% of total assets • Duration of 5.0 years • 53% of portfolio HTM o 10% of HTM are CRA investments o 23% of HTM are Municipals • Unrealized losses in AOCI on securities totaled $278.
Slide 18: Non-Owner Occupied CRE – Term and Office
18 Non-Owner Occupied CRE – Term* and Office Non-Owner Occupied CRE – Term* 16% 10% 9% 18%9% 10% 20% 8% Warehouse/Industrial Hotels Self Storage Multi-family Medical Office Office (non-medical) Retail Senior Housing • 29.7% of total loans • Non-performing loans of 0.27% • No 30-89 days past due Note
Slide 19: Construction
19 Construction Note: As of September 30, 2023; LTV is calculated using the most recent appraisal available. 21% 8% 34% 6% 4% 12% 11% 1% 3% 1-4 Family Commercial Owner-Occupied Multi-family Office Retail Self Storage Warehouse / Industrial Hotels Senior Housing Composition Highlights • 11.6% of tota
Slide 20: ACL / Loss Absorption
20 ACL / Loss Absorption ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans Commercial, Financial, Agricultural 41,283$ 2.38 44,444$ 2.44 Lease Financing Receivables 2,480 2.03 3,355 2.78 Real Estate - 1-4 Family Mortgage 46,799 1.40 45,878 1.35 Real Estate - Commercial Mortgage 75,335
Slide 21: Mortgage Banking
21 Mortgage Banking MixMortgage Banking Income Gain on sale margin* *Gain on sale margin excludes pipeline fair value adjustments and buyback reserve activity included in “Gain on sales of loans, net” in the table above ($ in thousands) 3Q22 2Q23 3Q23 Gain on sales of loans, net 5,263$ 4,646$ 3,297$
Slide 22: Reconciliation of Non-GAAP Disclosures: Pre-Provision Net Revenue
22 Reconciliation of Non- GAAP Disclosures Pre-Provision Net Revenue and Adjusted Pre-Provision Net Revenue $ in thousands 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Net income (GAAP) 46,567$ 46,276$ 46,078$ 28,643$ 41,833$ Income taxes 13,563 12,885 11,322 6,634 10,766 Provision for credit losses (inc
Slide 23: Reconciliation of Non-GAAP Disclosures: PPNR/Average Assets
23 Reconciliation of Non- GAAP Disclosures Pre-Provision Net Revenue/Average Assets and Adjusted Pre-Provision Net Revenue/Average Assets (1) Tax effect is calculated based on the respective periods’ effective tax rate excluding the impact of discrete items. (2) See slide 22 for a reconciliation of
Slide 24: Reconciliation of Non-GAAP Disclosures: Adjusted Diluted EPS
24 Reconciliation of Non- GAAP Disclosures Adjusted Diluted Earnings Per Share (1) Tax effect is calculated based on the respective periods’ effective tax rate excluding the impact of discrete items. $ in thousands 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Net income (GAAP) 46,567$ 46,276$ 46,078$ 28,
Slide 25: Reconciliation of Non-GAAP Disclosures: Adjusted ROTCE
25 Reconciliation of Non- GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) (1) Tax effect is calculated based on the respective periods’ effective tax rate excluding the impact of discrete items. $ in thousands 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Net income (GAAP) 46,567$ 46,
Slide 26: Reconciliation of Non-GAAP Disclosures: Adjusted Net Interest Margin
26 Reconciliation of Non- GAAP Disclosures Adjusted Net Interest Income (FTE) and Adjusted Net Interest Margin $ in thousands 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Net interest income (FTE) (GAAP) 132,435$ 140,565$ 138,529$ 133,085$ 130,131$ Less: Net interest income collected on problem loans 78
Slide 27: Reconciliation of Non-GAAP Disclosures: Adjusted Loan Yield
27 Reconciliation of Non- GAAP Disclosures Adjusted Loan Yield $ in thousands 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Loan interest income (FTE) (GAAP) 124,614$ 147,519$ 163,970$ 175,549$ 183,521$ Less: Net interest income collected on problem loans 78 161 392 364 (820) Accretable yield recognized o
Slide 28: Reconciliation of Non-GAAP Disclosures: Adjusted Efficiency Ratio
28 Reconciliation of Non- GAAP Disclosures Adjusted Efficiency Ratio $ in thousands 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Net interest income (FTE) (GAAP) 132,435$ 140,565$ 138,529$ 133,085$ 130,131$ Total noninterest income (GAAP) 41,186 33,395 37,293 17,226 38,200 Gain on sale of MSR 2,960 - - -
Slide 29: Reconciliation of Non-GAAP Disclosures: Tangible Common Equity
29 Reconciliation of Non- GAAP Disclosures Tangible Common Equity and Tangible Book Value $ in thousands 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Shareholders' equity (GAAP) 2,092,281$ 2,136,016$ 2,187,300$ 2,208,628$ 2,233,323$ Intangibles 966,461 1,015,884 1,014,415 1,013,046 1,011,735 Tangible sha
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