Renasant Corporation · NYSE:RNST
Renasant — Investor Presentation (November 2021)
53 slides from Renasant's investor presentation, Nov 15, 2021
Slide 1: Investor Presentation November 2021
Exhibit 99.1 Investor Presentation November 2021
Slide 2: Important Information: Forward Looking Statements
Important Information 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
Slide 3: Important Information, cont.: Non-GAAP Financial Information
Important Information, cont. Non-GAAP Financial Information In addition to results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this press release contains non-GAAP financial measures, namely, loans excluding Paycheck Protection Prog
Slide 4: Overview of Renasant Corporation
Overview of Renasant Corporation
Slide 5: Experienced Leadership Team
Experienced Leadership Team E. Robinson McGraw • Chairman of the Board since 2005 Executive Chairman • President (2000-2016) and CEO (2000-2018) Age: 74 Years of Experience: 47• General Counsel prior to becoming President and CEO Years at Renasant: 47 C. Mitchell Waycaster • President since 2016 and
Slide 6: Overview: Company Snapshot
Overview Winston-Salem Company Snapshot 81 Nashville 95 Knoxville Greensboro 40 TENNESSEE 77 Raleigh 24 75 ARKANSAS Memphis NORTH CAROLINA Charlotte Chattanooga 40 Greenville 85 Huntsville 65 Tupelo Columbia 95 $16.2B $10.0B $13.3B $2.2B Birmingham Atlanta 20 SOUTH CAROLINA GEORGIA Assets Loans Depo
Slide 7: Strong Southern Recovery
Strong Southern Recovery The South Will Likely Recover Employment Losses First (Employment Recovery by Region) (1) Unemployment Rate by Region (%) 6.55% 6.16% 4.83% 4.85% Recovery Northeast Midwest Q32022 West South West Midwest Northeast Employment YoY Change (%) Q42022 3.8% 3.2% 3.3% 3.1% 2.9% 2.6
Slide 8: Investment Highlights
Investment Highlights • Building on a 117 year history • 200 banking, lending, mortgage, wealth management and insurance offices in vibrant markets across 7 Southeastern states • Experienced and tenured team attracting new talent • Proven track record of successful acquisitions and de novo expansion
Slide 9: Market Expansion Since 2010
Market Expansion Since 2010 KeyWorth Bank American Trust First M&F Brand Group (1) Atlanta, GA Bank Corporation Holdings, Inc. Roswell, GA Kosciusko, MS Lawrenceville, GA Crescent Bank and Heritage (1) Metropolitan Trust Financial RBC (USA) BancGroup, Inc. Jasper, GA Group, Inc. Trust Unit Ridgeland
Slide 10: Recognition of Our Efforts
Recognition of Our Efforts Jersey Sponsor of Nashville Soccer Newsweek 2021 Recognition Club Newsweek names Renasant as the Demonstrates Renasant as a strong Best Big Bank in Mississippi for culturally relevant bank in one of the 2022 fastest growing markets in the Southeast Renasant Convention Cent
Slide 11: Commitment to Environmental, Social & Governance
Commitment to Environmental, Social & Governance We firmly believe that prudent, inclusive, long-term focused management and governance are good for shareholders, customers, and employees. We are firmly committed to treating prospective and existing customers, our employees, and our communities in a
Slide 12: Financial Condition
Financial Condition
Slide 13: Third Quarter Highlights
Third Quarter Highlights • Net income of $40.1 million and diluted earnings per share (“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 with gain on sale margins
Slide 14: Total Assets
Total Assets $16,156 $16,022 $16,000 $15,623 $14,930 $15,000 $14,809 $14,000 $13,000 $12,000 $11,000 $10,000 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 14 Dollars in millions
Slide 15: Loans and Yields
Loans and Yields 4.24% 4.24% 4.11% 4.09% 4.10% 4.06% 4.03% 4.01% 3.94% 3.89% $11,085 $10,934 $10,688 $10,149 $10,017 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 1-4 Family Mortgage Commercial Mortgage Construction Other* C&I PPP Loan Yield Core Loan Yield** Dollars in millions * Other loans are comprise
Slide 16: Loan Portfolio Composition
Loan Portfolio Composition Loan Portfolio Highlights as of September 30, 2021 At September 30, 2021, loans held for • Legacy of proactive portfolio management and investment totaled $10.0 billion conservative credit underwriting • Granular loan portfolio: C&I Other o Average loan size is approximate
Slide 17: Diversified Loan Portfolio
Diversified Loan Portfolio 17 Chart excludes PPP loans of $67 million
Slide 18: ADC and CRE Loan Concentration Levels
ADC and CRE Loan Concentration Levels CRE Loans (Const. & Perm) as a Percentage of ADC Loans as a Percentage of Bank Risk Based Capital Bank Risk Based Capital 100% 300% 87% 83% 81% 79% 250% 78% 80% 76% 73% 200% 60% 150% 40% 100% 20% 50% 0% 0% 18
Slide 19: Deposit Mix and Pricing
Deposit Mix and Pricing $13,255 $13,115 $12,737 $12,059 $11,934 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 19 Dollars in millions
Slide 20: Liquidity
Liquidity Cash & Cash Equivalents Average Loans to Average Deposits $1,800 $1 93% $1,605 92% $1,600 $1,476 $1 $1,400 $1,262 88% $1,200 $1 $1,000 81% $800 $633 $1 $600 $414 76% $400 $1 $200 $0 $1 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Securities $3,000 $2,545
Slide 21: Securities Portfolio Composition
Securities Portfolio Composition Highlights <1% • Market value of $2.54B 2% • Taxable equivalent yield of 1.59% 15% • Average life of 5.2 years 37% • 85% of securities portfolio is U.S. government agency or Treasury issued (1) • 98% of the municipal portfolio is rated AA or better 45% Agency MBS Age
Slide 22: Liquidity: Sources of Liquidity
Liquidity Sources of Liquidity as of September 30, 2021 Outstanding / Remaining Usage Available Pledged Availability Percentage Total FHLB Line $4,790 $812 $3,978 17.0 % Brokered Deposits* 2,651 -- 2,651 0.0 Pledgeable Securities 2,172 558 1,614 25.7 Unsecured Bank Line 150 -- 150 0.0 Secured Bank L
Slide 23: Interest Rate Sensitivity
Interest Rate Sensitivity • The following table summarizes the forecasted impact on net interest income given an immediate change in interest rates at the specified levels based on forecasted assumptions of prepayment speeds, nominal interest rates and loan and deposit repricing rates • Assumptions
Slide 24: Capital Position
Capital Position Regulatory Capital as of September 30, 2021 Capital Highlights • 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 to repurch
Slide 25: Capital Ratios
Capital Ratios Strong Capital Position Minimum to be Well Ratio 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 (1) Capitalized Shareholders Equity to 14.21% 14.29% 13.91% 13.75% 13.64% N/A (Actual) Assets Tangible Common Equity to Tangible 8.19 8.33 8.23 8.22 8.15 N/A Assets* Leverage 9.17 9.37 9.49 9.30 9
Slide 26: Asset Quality
[URENASANT Asset Quality
Slide 27: Asset Quality: Past Due and Classified Loans
Asset Quality Loans 30-89 Days Past Due / Total Loans Classified Loans / Total Loans $30,000 0.40% $250,000 3.00% 1.88% $200,000 0.30% $20,000 2.00% $150,000 0.15% 0.20% $100,000 $10,000 1.00% 0.10% $50,000 $- 0.00% $- 0.00% 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q 2020 2020 2021 2021 2021 2020 2020 2021 2021
Slide 28: Asset Quality: NPAs and Net Charge-Offs
Asset Quality NPAs / Total Assets Net Charge-Offs / Average Loans $10,000 0.60% $75,000 2.50% 0.50% 2.00% $7,500 $50,000 0.40% 1.50% $5,000 0.30% 1.00% $25,000 0.20% 0.50% $2,500 0.04% 0.38% 0.10% $- 0.00% 3Q 4Q 1Q 2Q 3Q $- 0.00% 2020 2020 2021 2021 2021 3Q 4Q 1Q 2Q 3Q 2020 2020 2021 2021 2021 OREO
Slide 29: ACL Metrics
ACL Metrics Allowance / Total Loans Allowance / Nonperforming Loans $180,000 1.90% $180,000 400% 1.71% 1.80% 300% $170,000 $170,000 350% 1.70% $160,000 1.70% 1.60% $160,000 300% $150,000 1.50% $150,000 250% $140,000 1.40% 3Q 4Q 1Q 2Q 3Q 2020 2020 2021 2021 2021 $140,000 200% ($ in thousands) ($ in t
Slide 30: ACL Summary
ACL Summary 12/31/2020 9/30/2021 ACL as a % ACL as a % ($ in thousands) ACL of Loans ACL 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
Slide 31: Loss Absorption Capacity
Loss Absorption Capacity ($ in thousands) 9/30/2021 Allowance for Credit Losses on Loans $ 170,038 Reserve for Unfunded Commitments 20,335 Purchase Accounting Discounts 16,997 Total Loss Absorption Capacity $ 207,370 Total Loss Absorption Capacity 1.71% Excluding PPP* 31 * Allowance to total loans (
Slide 32: Profitability
[URENASANT Profitability
Slide 33: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre- Provision Net Revenue* 1.68% 1.66% 1.53% 1.24% 1.23% 1.54% 1.04% 0.99% 0.80% 0.84% $63.2 $62.3 $57.4 $50.2 $48.8 $57.9 $40.9 $40.1 $31.5 $30.0 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net Income PPNR (Non-GAAP)* ROAA PPNR/Avg Assets (Non-GAAP)* Dollars in millions *Adjusted
Slide 34: Diluted Earnings per Share Reported and Adjusted
Diluted Earnings per Share Reported and Adjusted* $1.20 $1.02 $1.00 $.85 $0.80 $.73 $.72 $.71 $.71 $.68 $0.60 $.56 $.53 $.53 $0.40 $0.20 $- 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 slide 4
Slide 35: Profitability Ratios
Profitability Ratios Return on Average Assets (ROAA) Return on Average Equity (ROAE) 1.80% 18.00% 16.68% 1.60% 1.54% 16.00% 13.64% 13.52% 1.40% 14.00% 13.13% 1.29% 1.20% 12.00% 10.81% 10.81% 1.04% 1.04% 1.02% 0.99% 0.99% 1.00% 10.00% 0.84% 0.80% 0.79% 0.80% 8.00% 7.40% 7.16% 5.88% 5.63% 0.60% 6.00%
Slide 36: Core Net Interest Income & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 3.37% 3.35% 3.29% 3.19% 2.93% 3.23% 3.22% 3.12% 2.92% 2.76% $111.3 $111.2 $110.0 $107.9 $105.0 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Dollars in millions *Core Net Interest Inc
Slide 37: Noninterest Income
Noninterest Income Noninterest Income Q3 2021 Non Interest Income Contribution $81,037 Other Service 10% Charges $70,928 18% $62,864 $50,755 $47,610 Fees and Commissions 8% Insurance 6% Wealth Mortgage Banking Management 46% 11% Securities Gains 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 1% • Fee incom
Slide 38: Mortgage Banking
Mortgage Banking Mortgage Banking Income Mortgage Mix ($ in thousands) 3Q20 2Q21 3Q21 3Q20 2Q21 3Q21 Gain on sales of loans, net $ 45,985 $ 17,581 $ 20,116 Wholesale % 41 40 42 Fees, net 5,367 4,519 3,420 Retail % 59 60 58 Mortgage servicing income, net (2,466) (1,247) (244) Purchase % 55 67 59 MSR
Slide 39: Efficiency Ratio
Efficiency Ratio 71% 68% 67% 67% 66% 65% 64% 64% 63% 60% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Efficiency Ratio (GAAP) Adjusted Efficiency Ratio (non-GAAP)* *Adjusted Efficiency Ratio is a non-GAAP financial measure. See slide 49 in the appendix for a description of exclusions and a reconciliation
Slide 40: Appendix
[URENASANT Appendix
Slide 41: Kroll Bond Rating Agency Summary
Kroll Bond Rating Agency Summary Kroll Bond Rating Agency Ratings Summary Outlook Stable Renasant Corporation Rating Senior Unsecured Debt BBB+ Subordinated Debt BBB Short-Term Debt K2 Renasant Bank Rating Deposits A- Senior Unsecured Debt A- Subordinated Debt BBB+ Short-Term Deposit K2 Short-Term D
Slide 42: Reconciliation of Non-GAAP: Adjusted Pre-Provision Net Revenue
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue $ 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
Slide 43: Reconciliation of Non-GAAP: Pre-Tax Core Net Income
Reconciliation of Non-GAAP Disclosures Pre-Tax Core Net Income $ in thousands 2017 2018 2019 2020 3Q 2021 Net income (GAAP) $ 92,188 $ 146,920 $ 167,596 $ 83,651 $ 40,063 Income taxes 67,681 41,727 48,091 19,840 11,185 Pre-tax net income (non-GAAP) $ 159,869 $ 188,647 $ 215,687 $ 103,491 $ 51,248 Am
Slide 44: Reconciliation of Non-GAAP: Adjusted PPNR / Average Assets
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue / Average Assets $ 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) - - Re
Slide 45: Reconciliation of Non-GAAP: Diluted Earnings Per Share
Reconciliation of Non-GAAP Disclosures 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 ) (13,56 1) - - Restructuring charges - 7
Slide 46: Reconciliation of Non-GAAP: Return on Average Tangible Common Equity
Reconciliation of Non-GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) $ in thousands 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net income (GAAP) $ 2 9,992 $ 3 1,521 $ 5 7,908 $ 4 0,867 $ 40,063 Debt prepayment penalties 28 3 - - - MSR valuation adjustment (828) (1,968) (13,561) -
Slide 47: Reconciliation of Non-GAAP: Core Net Interest Income and Margin
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin $ 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,
Slide 48: Reconciliation of Non-GAAP: Core Loan Yield
Reconciliation of Non-GAAP Disclosures Core Loan Yield $ 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 o
Slide 49: Reconciliation of Non-GAAP: Adjusted Efficiency Ratio
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio $ 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 -
Slide 50: Reconciliation of Non-GAAP: Tangible Common Equity and Tangible Book Value
Reconciliation of Non-GAAP Disclosures Tangible Common Equity and Tangible Book Value $ 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 tangi
Slide 51: Reconciliation of Non-GAAP: Asset Quality Ratios (Excluding PPP Loans)
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios (Excluding PPP Loans) $ 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
Slide 52: Reconciliation of Non-GAAP: Asset Quality Ratios, continued
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios (Excluding PPP Loans), continued $ 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
Slide 53: 53
53