Renasant Corporation · NYSE:RNST
Renasant — Merger or Acquisition (November 2015)
37 slides from Renasant's merger presentation, Nov 9, 2015
Slide 1: Fourth Quarter 2015 Investor Presentation
Fourth Quarter 2015 Investor Presentation
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about companies’ anticipated future financial
Slide 3: Over 175 banking, lending, financial services and insurance offices
Over 175 banking, lending, financial services and insurance offices 3 Western 33% Northern 23% Portfolio Loans Central 23% Eastern 21% Western 44% Eastern 20% Total Deposits Central 23% Northern 13%
Slide 4: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
4 Enhance Profitability Capitalize on Opportunities Aggressively Manage Problem Credits Build Capital Ratios • Focus on highly-accretive acquisition opportunities • Leverage existing markets • Seek new markets • New lines of business • Selective balance sheet growth • Maintain dividend • Prudently m
Slide 5: Financial Highlights and Footprint
Nashville Memphis TENNESSEE Tupelo Jackson MISSISSIPPI Birmingham Huntsville Montgomery Atlanta GEORGIA ALABAMA Source: SNL Financial 5 Financial Highlights Assets $3.59 Billion Gross Loans $2.28 Billion Deposits $2.69 Billion
Slide 6: Expansion and Acquisition History
6 De novo expansion: Columbus, MS 2010 De novo expansion: Montgomery, AL Starkville, MS Tuscaloosa, AL De novo expansion: Maryville, TN Jonesborough, TN FDIC-Assisted Transaction: Crescent Bank and Trust Jasper, GA Assets: $1.0 billion FDIC-Assisted Transaction: American Trust Bank Roswe
Slide 7: De Novo Expansion Loans and Deposits
7 Dec. 12 Dec. 13 Dec. 14 Sept. 15 Dec. 12 Dec. 13 Dec. 14 Sept. 15 Montgomery, AL 61,743 76,529 90,751 107,212 20,272 26,869 33,355 45,750 Tuscaloosa, AL 23,830 36,006 58,005 69,023 31,060 45,384 61,194 25,834 Columbus, MS 20,285 28,412 44,948 47,899 48,125 66,236 81,471 82,086 Starkville, MS 32,05
Slide 8: Pending Merger with KeyWorth Bank
Pending Merger with KeyWorth Bank
Slide 9: Transaction Terms
9 Consideration 100% stock Fixed exchange ratio of 0.4494x(1) Price Per Share $15.00 Aggregate Value $58.7 million(2) Transaction Multiples(3) Price / Tangible Book – 137% Price / LTM Earnings – 21.0x Core Deposit Premium – 6.3% Options & Warrants Options and Warrants will be settled in cash Managem
Slide 10: Strategically Advantageous, Financially Attractive, Lower Risk
10 Strategically Advantageous • Provides additional scale in the Atlanta MSA with $389 million in assets and a strong core deposit base • Branch footprint provides an increased presence in the attractive northern suburbs of Atlanta • Complementary cultures and business model consistent with Renasa
Slide 11: Pro Forma Atlanta Highlights
Source: SNL Financial; Company (1) Represents assets and deposits of Renasant’s Atlanta franchise Pro Forma Atlanta Highlights Loans at 9/30/2015 ($Mil.) Deposits at 9/30/2015 ($Mil.) RNST(1) $345 $543 KeyWorth $250 $339 Total $595 $882 Pro Forma Atlanta MSA Franchise 11
Slide 12: Transaction Assumptions and Returns
12 Assumptions • Loan Mark • Credit: 3.0% • Cost Savings • 25% • Pre-Tax Merger Expenses • $7.4 million • Core Deposit Intangible • 1.0%, 10 year amortization • Revenue enhancements identified, none assumed in projections • Estimated closing in 1Q2016 Attractive Returns • Immediately accretive to EP
Slide 13: Pro Forma Highlights
Over 175 banking, lending, financial services and insurance offices 13 Assets (2) $8.2 billion Gross Loans (2) $5.4 billion Deposits (2) $6.3 billion Pro Forma Highlights
Slide 14: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
14 Enhance Profitability Capitalize on Opportunities Aggressively Manage Problem Credits Build Capital Ratios • Focus on highly-accretive acquisition opportunities • Leverage existing markets • Seek new markets • New lines of business • Selective balance sheet growth • Maintain dividend • Prudently
Slide 15: Total Assets and Deposits
• Managed deposit mix by emphasizing core deposit growth while allowing higher-priced, non-core deposits to erode • Significantly paid down high- cost borrowings • Restructured asset mix by redeploying excess cash levels into higher yielding investments and loans • Loan demand will drive deposit/fun
Slide 16: Total Loans Growth
2011 2012 2013 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Non- Acquired $2,242 $2,573 $2,886 $2,948 $3,097 $3,165 $3,268 $3,275 $3,408 $3,615 Acquired Covered* $339 $237 $182 $174 $167 $167 $143 $126 $121 $104 Acquired M&F - - $813 $746 $694 $694 $577 $553 $508 $1,558 Total Loans $2,581 $2,810 $3,881 $3,867
Slide 17: Loan Portfolio Composition
• Loans totaled $5.3B 32% of portfolio is acquired and carried at fair value • Owner occupied/C&I loans comprise 32% of the non covered loan portfolio Const 6% Land Dev 5% 1-4 Family 30% [CATEGOR Y NAME] 25% [CATEGOR Y NAME] 20% C&I 12% Consumer 2% Non-Covered Loans $5.16B 1-4 Family 42% Non Owner
Slide 18: Deposit and Funding Mix
DDA 9% Other Int Bearing Accts 26% Time Deposits 37% Borrowed Funds 28% 4Q 2008 Cost of Funds 2.81% $3.28B DDA 19% Other Int Bearing Accts 50% Time Deposits 23% Borrowed Funds 8% 3Q 2015 $6.8B Cost of Funds .33% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2009 2010 2011 2012 2013
Slide 19: Net Interest Income and Margin
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2011 2012 2013 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Marg in Y ie ld /C os t Yield on Earning Assets Cost of Funds Margin 2011 2012 2013 2014 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Net Interest Income 129,077 133,338 157,20
Slide 20: Noninterest Income
25% 7% 33% 9% 18% 8% 3Q15 $32.1M Svc Chgs Insurance Mtg Gains Wealth Mgmt Fees & Comm Other • Diversified sources of noninterest income Less reliant on NSF • Opportunities for growing Non Interest Income Expansion of Trust Division Wealth Management Services into larger, metropolitan markets Expa
Slide 21: Noninterest Expense and Efficiency Ratio
• Continued focus on managing noninterest expenses and improving efficiency • Provided resources for nine de novo expansions since 2010 • Fluctuations in mortgage loan expense driven by higher mortgage production • Incurred merger related expenses during 2010, 2011, 2013, 2014 and 2015 21 40.00% 45.
Slide 22: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
22 Enhance Profitability Capitalize on Opportunities Aggressively Manage Problem Credits Build Capital Ratios • Focus on highly-accretive acquisition opportunities • Leverage existing markets • Seek new markets • New lines of business • Selective balance sheet growth • Maintain dividend • Prudently
Slide 23: Nonperforming Assets
Non-acquired NPAs approaching pre-credit cycle levels. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 2009 2010 2011 2012 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Non-Acquired Acquired Covered Acquired 75 22 As a percentage of total assets 83 23 Non- Acquired Acquired Covered Acquir
Slide 24: Provision, Charge-Offs and Allowance for Loan Losses
*Ratios excludes loans and assets acquired in connection with the First M&F & HBOS acquisitions or loss share transactions 0.00% 50.00% 100.00% 150.00% 200.00% 250.00% 300.00% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 4Q12 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 ($)Provision for Loan Losses ($)Ne
Slide 25: NPLs and Early Stage Delinquencies
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2008 2009 2010 2011 2012 2013 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 39.9 50.0 53.8 57.2 30.1 19.2 19.7 20.8 26.3 20.2 18.9 21.1 22.5 48.5 24.1 21.5 18.9 8.0 9.0 7.4 7.9 7.8 10.4 12.1 6.4 7.2 NPLs 30-89 Days Continued Improvement NPLs and Early Stage De
Slide 26: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
26 Enhance Profitability Capitalize on Opportunities Aggressively Manage Problem Credits Build Capital Ratios • Focus on highly-accretive acquisition opportunities • Leverage existing markets • Seek new markets • New lines of business • Selective balance sheet growth • Maintain dividend • Prudently
Slide 27: Renasant Capital
4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 2009 2010 2011 2012 2013 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Tangible Common Equity Ratio Renasant Capital 2009 2010 2011 2012 2013 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Tangible Common Equity 6.34% 6.76% 7.35% 7.71% 6.64% 6.68% 7.00% 7.37% 7.52% 7.65% 7.7
Slide 28: Summary
28 $7.9B franchise well positioned in attractive markets in the Southeast Pending merger with Keyworth will add $400M in assets, $339M in deposits, $250M in loans and 4 branches in Atlanta MSA Strategic focus on expanding footprint • Acquisition • De Novo • New lines of business Opportunity f
Slide 29: Appendix
Appendix 29
Slide 30: Alabama Deposit Market Share
Birmingham leads the state in the health care industry with an annual payroll of approximately $2.9 billion, followed by Huntsville with $998 million Honda, Hyundai, Mercedes-Benz increasingly large presence Recent merger with HBOS added approximately $90.0 million in loans, $141 million in de
Slide 31: Florida Deposit Market Share
2.8% 2.6% 2.9% 0.0% 1.0% 2.0% 3.0% 4.0% Al ac hu a, FL Co lu m bi a, FL M ar io n, FL Entered the Florida market through the acquisition of Heritage Financial Group, Inc. (Nasdaq: HBOS), which closed on 7/1/15 Moved into FL with 8 full-services branches along I-75 Florida has the 19th largest
Slide 32: Georgia Deposit Market Share
11.0% 7.6% 1.1% 13.3% 0.5% 5.3% 18.6% 0.4% 15.9% 26.7% 2.3% 0.4% 1.8% 27.5% 9.2% 2.5% 0.0% 13.3% 9.7% 0.7% 14.2% 0.0% 8.0% 16.0% 24.0% 32.0% Ap plin g, G A Bar tow , G A Bib b, G A Bu lloc h, G A Ch ath am , G A Ch ero kee , G A Co ok, GA De Ka lb, GA Do ugh erty , G A Eff ing ham , G A For syt h, G
Slide 33: Mississippi Deposit Market Share
33 Deposit Market Share by County – Top 5 Presence in 23 of 27 counties 5 1 Entered the Columbus, MS market in November 2010 and opened an office in Starkville, home of Mississippi State University, during late Q3 ‘11 Columbus Air Force Base trains 1/3 of the nation’s pilots, with an economic im
Slide 34: Tennessee Deposit Market Share
2.3% 10.4% 1.3% 1.2% 0.8% 1.3% 2.1% 0.6% 0.0% 3.0% 6.0% 9.0% 12.0% Bl ou nt , T N Cr oc ke tt, T N Da vi ds on , T N Sh elb y, T N Su lli va n, T N Su m ne r, TN W as hi ng to n, T N W ill iam so n, T N Our Tennessee Operations The Knoxville/Maryville MSA location opened in late Q2 ‘12 East Te
Slide 35: KeyWorth Company Profile and Financial Highlights
Company Profile Headquarters Johns Creek, GA Bank Established: 2007 Office Locations Johns Creek, GA Dunwoody, GA Duluth, GA Alpharetta, GA Source: SNL Financial Financial Highlights 35 2012 2013 2014 YTD 9/30 Balance Sheet ($M) Total Assets 348 366 384 392 Total Net Loans 180 211 240 250 Total Depo
Slide 36: Additional information about the KeyWorth merger
Renasant will file a registration statement on Form S-4 that will include a proxy statement/prospectus, and other relevant documents concerning the proposed Keyworth Merger, with the SEC. This report does not constitute an offer to sell or the solicitation of an offer to buy any securities. BEFORE M
Slide 37: Management contact details
E. Robinson McGraw Chairman, President and Chief Executive Officer Kevin D. Chapman Executive Vice President and Chief Financial Officer 209 TROY STREET TUPELO, MS 38804-4827 PHONE: 1-800-680-1601 FACSIMILE: 1-662-680-1234 WWW.RENASANT.COM WWW.RENASANTBANK.COM 37