Slide 1: Third Quarter 2021 Investor Presentation
Third Quarter 2021 Investor Presentation
Slide 2: Forward-Looking Statements
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 Exch
Slide 3: Who We Are
3 Business model prioritizing core funding, asset quality and capital strength Operate in attractive, high growth markets throughout the Southeast History of organic growth and opportunistic acquisitions Focused on improving operating leverage Who We Are
Slide 4: Overview: Company Snapshot, Loans and Deposits by State
Overview Note: Financial data as of September 30, 2021 (1) Total revenue is calculated as net interest income plus noninterest income. Company Snapshot Loans and Deposits by State Assets: $16.2 billion Loans: 10.0 Deposits: 13.3 Equity: 2.2 4 MS 23% AL 22% FL 6% GA 32% TN 17% Loans MS 37% AL 12%FL 3
Slide 5: Renasant Footprint
55 20 65 10 65 75 20 95 95 85 77 95 81 7524 40 59 40 FLORIDA Jackson Mobile Knoxville Chattanooga Greensboro Raleigh Columbia Nashville Winston-Salem Montgomery Birmingham Columbus Charlotte Jacksonville Memphis Orlando Huntsville Tallahassee Atlanta Wilmington Charleston Savannah Tupelo Greenville
Slide 6: Third Quarter Highlights
Third Quarter Highlights 6 • Net income of $40.1 million and diluted EPS of $0.71 • Repurchased approximately 612,000 shares of common stock for $21.3 million at a weighted average price of $34.82 • Mortgage production remained strong during the quarter, but with lower gain on sale margins • Allowan
Slide 7: Financial Condition
[NRENASANT CORPORATION Financial Condition
Slide 8: Balance Sheet Growth
$1,515 $2,044 $2,126 $2,133 $2,204 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 2017 2018 2019 2020 Q3 2021 $7,921 $10,129 $10,213 $12,060 $13,255 $0 $2,000 $4,000 $6,000 $8,000 $10 ,000 $12 ,000 $14 ,000 2017 2018 2019 2020 Q3 2021 $7,620 $9,083 $9,690 $10,933 $10,017 $9,804 $9,950 $1,129 $67 0
Slide 9: Tangible Book Value Per Share
Tangible Book Value Per Share* 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 reconciliation of this non-GAAP financial measure to GAAP. $11.51 $13.13 $13.95 $16.65 $17.83 $18.21 $20.20 $20.69 $22.22 2013 2014
Slide 10: Loans and Yields
Loans and Yields 10Note: Dollars in millions * Other loans are comprised of installment loans to individuals and lease financing, which both have historically constituted less than 5% of the total loan portfolio. ** Core Loan Yield is a non-GAAP financial measure. See slide 40 in the appendix for a
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition 1-4 Family 21% HELOC 5% Consumer 1% Construction & Land Dev. 14% NOO CRE 28% OO CRE 16% C&I 13% Other 2% *Chart excludes PPP loans of $67 million At September 30, 2021, loans held for investment totaled $10.0 billion 11 • Legacy of proactive portfolio management and conser
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio 12Note: Chart excludes PPP loans of $67 million
Slide 13: ADC and CRE Loan Concentration Levels
ADC and CRE Loan Concentration Levels 13 ADC Loans as a Percentage of Bank Risk Based Capital CRE Loans (Const. & Perm) as a Percentage of Bank Risk Based Capital 78% 79% 83% 83% 81% 78% 73% 76% 79% 83% 87% 0% 20% 40% 60% 80% 100% 0% 50% 100% 150% 200% 250% 300%
Slide 14: Deposit Mix and Pricing
Deposit Mix and Pricing 14 Note: Dollars in millions $11,934 $12,059 $12,737 $13,115 $13,255 0.40% 0.33% 0.27% 0.24% 0.21% 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Noninterest-bearing Interest-bearing Savings Time Cost of deposits
Slide 15: Core Deposit Funding
Core Deposit Funding 34% 47% 8% 9% 2% Noninterest-bearing Interest-bearing Savings Time < $250,000 Time > $250,000 Cost of Funds 3Q20 2Q21 3Q21 Noninterest-bearing demand - - - Interest-bearing demand 0.36% 0.27% 0.24% Savings 0.08% 0.08% 0.08% Time deposits 1.42% 0.88% 0.78% Borrowed funds 2.20% 3.
Slide 16: Liquidity
Liquidity 16 Note: Dollars in millions $414 $633 $1,262 $1,605 $1,476 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Cash and Cash Equivalents $1,293 $1,343 $1,536 $2,164 $2,545 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Slide 17: Capital Position
Capital Position 17 Tier 1 $1,396 Tier 2 $317 Regulatory Capital as of September 30, 2021 • Repurchased $21.3 million of common stock during Q3 2021 • The Board approved a new $50 million stock repurchase program in October 2021 (the previous program having just expired); however, no current intent
Slide 18: Strong Capital Position
Strong Capital Position 18 * Tangible Common Equity is a non-GAAP financial measure. See slide 42 in the appendix for a description of the exclusions and a reconciliation of this non- GAAP financial measure to GAAP. Ratio 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Minimum to be Well Capitalized Tangibl
Slide 19: Dividend History
Dividend History 19 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00
Slide 20: Asset Quality
[NRENASANT CORPORATION Asset Quality
Slide 21: Asset Quality
1.88% 0.00% 1.00% 2.00% 3.00% 4.00% $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Classified Loans/Total Loans* Classified Loans % of Total Loans, excl. PPP ($ in thousands) 0.15% 0.00% 0.50% 1.00% 1.50% 2.00% $- $25,000 $50,000 $75,000 $100,000 3Q 2
Slide 22: Asset Quality
0.38% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 NPAs/Total Assets* Nonperforming loans OREO % of Assets ($ in thousands) 0.04% 0.00% 0.20% 0.40% 0.60% 0.80% $- $5,000 $10,000 $15,000 $20,000 3Q 2020 4Q 2020
Slide 23: ACL Metrics
1.71% 1.60% 1.65% 1.70% 1.75% 1.80% 1.85% 1.90% $140,000 $150,000 $160,000 $170,000 $180,000 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Allowance/Total Loans* Allowance % of Total Loans, excl. PPP ($ in thousands) 300% 200% 250% 300% 350% 400% $140,000 $150,000 $160,000 $170,000 $180,000 3Q 2020 4Q 202
Slide 24: ACL Summary
ACL Summary ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans SBA Paycheck Protection Program - - - - Commercial, Financial, Agricultural 39,031$ 2.77 34,977$ 2.56 Lease Financing Receivables 1,624 2.14 1,570 1.98 Real Estate - 1-4 Family Mortgage 32,165 1.19 32,181 1.18 Real Estate -
Slide 25: Loss Absorption Capacity
Loss Absorption Capacity 25 * Allowance to total loans (excluding PPP loans) is a non-GAAP financial measure. See slide 44 in the appendix for a reconciliation of this non-GAAP financial measure to GAAP ($ in thousands) Allowance for Credit Losses on Loans 170,038$ Reserve for Unfunded Commitments 2
Slide 26: Profitability
[NRENASANT CORPORATION Profitability
Slide 27: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 27 $30.0 $31.5 $57.9 $40.9 $40.1 $63.2 $57.4 $62.3 $48.8 $50.2 1.68% 1.53% 1.66% 1.24% 1.23% 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net Income P Adj. PPNR (non-GAAP)* Adj. PPNR /Avg. Assets (non-GAAP)* Note: Dollars in millions *Adjusted Pre-Provisio
Slide 28: Diluted Earnings per Share Reported and Adjusted
Diluted Earnings per Share Reported and Adjusted* 28 $.53 $.56 $1.02 $.72 $.71 $.53 $.68 $.85 $.73 $.71 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 EPS (GAAP) EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial measure. See slid
Slide 29: Profitability Ratios
Profitability Ratios 29 5.63% 5.88% 10.81% 7.40% 7.16% 10.81% 13.52% 16.68% 13.64% 13.13% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 ROE (GAAP) ROTCE (Adjusted) (non-GAAP)* * ROAA (Adjusted) and ROTCE (Adjusted) are non-GAAP financial mea
Slide 30: Core Net Interest Income (FTE) & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 30 $107.9 $110.0 $111.3 $111.2 $105.0 3.29% 3.35% 3.37% 3.19% 2.93%3.23% 3.22% 3.12% 2.92% 2.76% 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Inte
Slide 31: Noninterest Income Contribution
Note: Dollars in thousands $70,928 $62,864 $81,037 $47,610 $50,755 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Service Charges Fees and Commissions Insurance Wealth Management Mortgage Banking Securities Gains Other Noninterest Income 31 Service Charges 18% Fees and Commissions 8% Insurance 6% Wealth Ma
Slide 32: Mortgage Banking
Mortgage Banking 32 Mortgage MixMortgage banking income Gain on sale margin* Note: Dollars in millions *Gain on sale margin excludes pipeline fair value adjustments included in “Gain on sales of loans, net” in the table above. ($ in thousands) 3Q20 2Q21 3Q21 Gain on sales of loans, net 45,985$ 17,58
Slide 33: Efficiency Ratio
65% 71% 60% 68% 67% 63% 64% 64% 67% 66% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Efficiency Ratio (GAAP) Adjusted Efficiency Ratio (non-GAAP)* Efficiency Ratio 33 *Adjusted Efficiency Ratio is a non-GAAP financial measure. See slide 41 in the appendix for a description of exclusions and a reconciliat
Slide 34: Appendix
[NRENASANT CORPORATION Appendix
Slide 35: Reconciliation of Non-GAAP Disclosures: Adjusted Pre-Provision Net Revenue
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue 35 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net income (GAAP) 29,992$ 31,521$ 57,908$ 40,867$ 40,063$ Income taxes 7,612 6,818 16,842 7,545 11,185 Provision for credit losses (including unfunded commitments) 25,8
Slide 36: Reconciliation: Adjusted Pre-Provision Net Revenue/Average Assets
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets 36 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net income (GAAP) 29,992$ 31,521$ 57,908$ 40,867$ 40,063$ Debt prepayment penalties 28 3 - - - MSR valuation adjustment (828) (1,968) (13,561) - - Restru
Slide 37: Reconciliation: Diluted Earnings Per Share
Reconciliation of Non-GAAP Disclosures 37 Diluted Earnings Per Share $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net income (GAAP) 29,992$ 31,521$ 57,908$ 40,867$ 40,063$ Debt prepayment penalties 28 3 - - - MSR valuation adjustment (828) (1,968) (13,561) - - Restructuring charges - 7,365
Slide 38: Reconciliation: Return on Average Tangible Common Equity
Reconciliation of Non-GAAP Disclosures 38 Return on Average Tangible Common Equity (Adjusted) $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net income (GAAP) 29,992$ 31,521$ 57,908$ 40,867$ 40,063$ Debt prepayment penalties 28 3 - - - MSR valuation adjustment (828) (1,968) (13,561) - - Rest
Slide 39: Reconciliation: Core Net Interest Income and Core Net Interest Margin
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin 39 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net interest income (FTE) (GAAP) 107,885$ 110,024$ 111,264$ 111,205$ 105,002$ Less: Net interest income collected on problem loans 282 128 2,18
Slide 40: Reconciliation: Core Loan Yield
Reconciliation of Non-GAAP Disclosures Core Loan Yield 40 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Loan interest income (FTE) (GAAP) 112,764$ 113,457$ 113,072$ 110,785$ 103,769$ Less: Net interest income collected on problem loans 282 128 2,180 1,339 316 Accretable yield recognized on
Slide 41: Reconciliation: Adjusted Efficiency Ratio
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio 41 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net interest income (FTE) (GAAP) 107,885$ 110,024$ 111,264$ 111,205$ 105,002$ Total noninterest income (GAAP) 70,928 62,864 81,037 47,610 50,755 Securities gains - 15 1,357 - 76
Slide 42: Reconciliation: Tangible Common Equity
Reconciliation of Non-GAAP Disclosures Tangible Common Equity 42 $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Actual shareholders' equity (GAAP) 2,104,300$ 2,132,733$ 2,173,701$ 2,203,807$ 2,203,944$ Intangibles 971,481 969,823 968,225 966,686 965,205 Actual tangible shareholders' equity (
Slide 43: Reconciliation: Tangible Book Value
Reconciliation of Non-GAAP Disclosures Tangible Book Value 43 $ 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$ 414,321
Slide 44: Reconciliation: Asset Quality Ratios excluding PPP loans
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans 44 $ in thousands Q3 2020 Q4 2020 1Q 2021 2Q 2021 3Q 2021 Total loans (GAAP) 11,084,738$ 10,933,647$ 10,688,408$ 10,149,242$ 10,016,824$ Less: PPP loans 1,307,972 1,128,703 860,864 246,931 67,462 Adjusted total loans (no
Slide 45: Reconciliation: Asset Quality Ratios excluding PPP loans, continued
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued 45 $ in thousands Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Total average loans (GAAP) 11,041,684$ 11,019,505$ 10,802,991$ 10,478,121$ 10,017,742$ Less: Average PPP loans 1,305,229 1,252,990 985,561 628,462 126,
Slide 46: Investor Inquiries
Investor Inquiries 46 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