Slide 1: First Quarter 2024 Investor Presentation
First Quarter 2024 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 March 31, 2024 Assets: $17.3 billion Loans: 12.5 Deposits: 14.2 Equity: 2.3 Footprint Loans and Deposits by State MS 18% AL 29% FL 8% Other 1% GA 29% TN 15% Loans MS 38% AL 14% FL 3% GA 32% TN 13% Deposits *Republic Business Credit operates on a nationwide basis. Loca
Slide 4: First Quarter Highlights
4 First Quarter Highlights • Net income of $39.4 million with diluted EPS of $0.70 and adjusted diluted EPS (non-GAAP)(1) of $0.65. The Company sold a portion of its mortgage servicing rights (“MSRs”) for a gain of $3.5 million, which increased diluted EPS by $0.05 • Net interest margin decreased 3
Slide 5: Balance Sheet
5 Balance Sheet $17,474 $17,224 $17,182 $17,361 $17,346 $17,000 $17,050 $17,100 $17,150 $17,200 $17,250 $17,300 $17,350 $17,400 $17,450 $17,500 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Assets $11,766 $11,931 $12,168 $12,351 $12,501 $11,200 $11,400 $11,600 $11,800 $12,000 $12,200 $12,400 $12,600 1Q 20
Slide 6: Core Deposit Funding
6 Core Deposit Funding 25% 50% 6% 17% 2% Noninterest-bearing Interest-bearing* Savings Time Brokered • Average deposit account is $31 thousand; commercial and consumer deposit accounts, excluding time deposit accounts, averaged approximately $78 thousand and $13 thousand, respectively • Top 20 depos
Slide 7: Strong Liquidity Position
7 Strong Liquidity Position 85% 85% 86% 88% 88% $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Loans to Deposits 20.9% 18.4% 16.9% 17.0% 16.2% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Cash and Securities to Total Assets Average Interest Earning
Slide 8: Capital
8 Capital • $100 million stock repurchase program is in effect through October 2024; there was no buyback activity in the first quarter of 2024 • 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 2.44% 2.32% 2.27% 2.16% 2.76% 2.00% 2.50% 3.00% 3.50% 4.00% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Criticized Loans/Total Loans 0.43% 0.10% 0.11% 0.44% 0.48% 0.0% 0.5% 1.0% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Loans 30-89 Days Past Due/ Total Loans 0.16% 0.13% 0.06% 0.06% 0.01% 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 23, 24, 25 and 27 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 24, 26 and 29 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 3.66% 3.45% 3.36% 3.33% 3.30% 3.63% 3.43% 3.35% 3.29% 3.28% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 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 10% Insurance 7% Wealth Management 14% Mortgage Banking 27% Other 17% Noninterest Income Mix - 1Q 2024 • Noninterest income increased $21.0 million on a linked quarter basis. In the fourth quarter of 2023, the Company rec
Slide 14: Noninterest Expense
14 Noninterest Expense Salaries and employee benefits 63% Data processing 4% Net occupancy and equipment 10% Advertising and public relations 4% Other 19% Mix - 1Q 2024($ in thousands) 4Q23 1Q24 Change Salaries and employee benefits 71,841$ 71,470$ (371)$ Data processing 3,971 3,807 (164) Net occupa
Slide 15: Appendix
T Understanding You. CORPORATION Appendix
Slide 16: Available Liquidity and Uninsured Deposits
16 Available Liquidity and Uninsured Deposits Note: As of March 31, 2024; dollars in billions (1) Approximately $171 million of the unencumbered securities are placed at the Fed (2) Does not include loans participated to REITs that could be moved to Renasant Bank and pledged for additional capacity
Slide 17: Securities Composition (at Amortized Cost)
17 Securities Composition (at Amortized Cost) Agency MBS 29% Agency CMO 38% Agency CMBS 10% Municipal 15% SBA 5% Other 3% • Represents 11.3% of total assets • Duration of 4.9 years • 61% of portfolio HTM o 10% of HTM are CRA investments o 24% of HTM are Municipals • Unrealized losses in AOCI on secu
Slide 18: Non-Owner Occupied CRE – Term and Office
18 Non-Owner Occupied CRE – Term* and Office Non-Owner Occupied CRE – Term* 17% 9% 10% 21% 8% 9% 17% 9% Warehouse/Industrial Hotels Self Storage Multi-family Medical Office Office (non-medical) Retail Senior Housing • 31.8% of total loans • Non-performing loans of 0.24% • 30-89 days past due of 0.08
Slide 19: Construction
19 Construction Note: As of March 31, 2024; LTV is calculated using the most recent appraisal available. 22% 5% 37% 6% 6% 10% 11% 3% 1-4 Family Commercial Owner-Occupied Multi-family Office Retail Self Storage Warehouse / Industrial Hotels Composition Highlights • 9.9% of total loans • 0.02% past du
Slide 20: ACL / Loss Absorption
20 ACL / Loss Absorption ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans Commercial, Financial, Agricultural 43,980$ 2.35 45,922$ 2.46 Lease Financing Receivables 2,515 2.17 2,554 2.38 Real Estate - 1-4 Family Mortgage 47,270 1.37 47,532 1.39 Real Estate - Commercial Mortgage 77,048
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) 1Q23 4Q23 1Q24 Gain on sales of loans, net 4,770$ 1,860$ 4,535$
Slide 22: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures
Slide 23: Pre-Provision Net Revenue and Adjusted Pre-Provision Net Revenue
23 Reconciliation of Non- GAAP Disclosures Pre-Provision Net Revenue and Adjusted Pre-Provision Net Revenue $ in thousands 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Net income (GAAP) 46,078$ 28,643$ 41,833$ 28,124$ 39,409$ Income taxes 11,322 6,634 10,766 3,787 9,912 Provision for credit losses (inclu
Slide 24: Pre-Provision Net Revenue/Average Assets
24 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’ year-to-date effective tax rate excluding the impact of discrete items. (2) See slide 23 for a recon
Slide 25: Adjusted Diluted Earnings Per Share
25 Reconciliation of Non- GAAP Disclosures Adjusted Diluted Earnings Per Share (1) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items. $ in thousands 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Net income (GAAP) 46,078$ 28,643
Slide 26: Return on Average Tangible Common Equity (Adjusted)
26 Reconciliation of Non- GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) (1) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items. $ in thousands 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Net income (GAAP
Slide 27: Adjusted Net Interest Income (FTE) and Adjusted Net Interest Margin
27 Reconciliation of Non- GAAP Disclosures Adjusted Net Interest Income (FTE) and Adjusted Net Interest Margin $ in thousands 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Net interest income (FTE) (GAAP) 138,529$ 133,085$ 130,131$ 128,595$ 125,850$ Less: Net interest income collected on problem loans 392
Slide 28: Adjusted Loan Yield
28 Reconciliation of Non- GAAP Disclosures Adjusted Loan Yield $ in thousands 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Loan interest income (FTE) (GAAP) 163,970$ 175,549$ 183,521$ 190,857$ 194,640$ Less: Net interest income collected on problem loans 392 364 (820) 283 123 Accretable yield recognized
Slide 29: Adjusted Efficiency Ratio
29 Reconciliation of Non- GAAP Disclosures Adjusted Efficiency Ratio $ in thousands 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Net interest income (FTE) (GAAP) 138,529$ 133,085$ 130,131$ 128,595$ 125,850$ Total noninterest income (GAAP) 37,293 17,226 38,200 20,356 41,381 Gain on extinguishment of debt
Slide 30: Tangible Common Equity and Tangible Book Value
30 Reconciliation of Non- GAAP Disclosures Tangible Common Equity and Tangible Book Value $ in thousands 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Shareholders' equity (GAAP) 2,187,300$ 2,208,628$ 2,233,323$ 2,297,383$ 2,322,350$ Intangibles 1,014,415 1,013,046 1,011,735 1,010,460 1,009,248 Tangible s
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