Slide 1: Third Quarter 2023 Earnings Call
Third Quarter 2023 Earnings Call
Slide 2: Forward-Looking Statements
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 Exchan
Slide 3: Overview
Overview Snapshot Footprint Assets: $17.2 billion Loans: 12.2 Deposits: 14.2 Equity: 2.2 Loans and Deposits by State Loans Deposits TN MS TN 15% 18% 13% MS 39% GA GA AL 31% 30% 29% AL 14% Other FL FL 1% 7% 3% 3 Note: As of September 30, 2023 *Republic Business Credit operates on a nationwide basis.
Slide 4: Third Quarter Highlights
Third Quarter Highlights • Net income of $42.3 million with diluted EPS of $0.75 • Net interest margin decreased 7 basis points to 3.38% on a linked quarter basis • Loans increased $237.5 million, or 7.9% annualized • Deposits increased $61.7 million; brokered deposits decreased $323 million • Cost
Slide 5: Balance Sheet
Balance Sheet Assets Loans $17 ,600 $17,474 $12 ,400 $12,168 $17 ,400 $17,224 $17,182 $12 ,200 $11,931 $17 ,200 $16,988 $12 ,000 $11,766 $17 ,000 $11 ,800 $11,578 $11 ,600 $16 ,800 $16,471 $11 ,400 $16 ,600 $11 ,200 $11,105 $16 ,400 $11 ,000 $16 ,200 $10 ,800 $16 ,000 $10 ,600 $15 ,800 $10 ,400 3Q 2
Slide 6: Core Deposit Funding
Core Deposit Funding Diversification Granularity 5% • Average deposit account is $29 thousand; commercial and consumer deposit accounts, excluding time deposit 15% 26% accounts, averaged approximately $75 thousand and $13 thousand, respectively • Top 20 depositors, excluding public funds, comprise 4
Slide 7: Strong Liquidity
Strong Liquidity Cash and Securities to Total Assets Loans to Deposits $1 20.7% 20.9% 20.2% $0 $1 $0 $0 18.4% $1 $0 $0 16.9% $1 86% 85% 85% 86% 83% $0 $1 $0 $0 $1 $0 $1 $0 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Average Interest Earning Asset Mix (3Q 2023) 5%
Slide 8: Capital
Capital Equity to Assets / Tangible Common Equity Ratio CET1 / TRBC $0 12.82% 13.00% $0 15.15% 14.63% 14.68% 14.76% 14.92% 12.70% 12.57% 12.52% $0 $0 $0 $0 $0 10.64% 10.21% 10.19% 10.30% 10.47% $0 7.26% 7.01% 7.13% 7.37% 7.56% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023
Slide 9: Asset Quality
Asset Quality Criticized Loans/Total Loans Loans 30-89 Days Past Due/ Allowance/Nonperforming Loans 2.50% 2.47% 2.44% 1.0% Total Loans 400% 338% 2.37% 312% 282% 2.32% 259% 2.27% 0.51% 212% 0.43% 2.25% 0.5% 200% 0.24% 0.10% 0.11% 2.00% 0.0% 0% 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 3Q 2022 4Q 2022 1
Slide 10: Profitability
Profitability Diluted EPS / Adjusted Diluted EPS (non-GAAP)* Net Income / Adjusted Net Income (non-GAAP)* $.89 $50.3 $46.6 $46.3 $46.1 $46.1 $46.7 $.83 $.79 $.82 $.82 $.82 $.83 $44.2 $42.3 $42.3 $.75 $.75 $.51 $28.6 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Dilu
Slide 11: Profitability Ratios
Profitability Ratios ROAA / Adjusted ROAA ROE / Adjusted ROTCE 1.20% 17.35% 1.11% 16.29% 15.94% 1.09% 1.08% 14.87% 14.11% 0.97% 1.05% 1.11% 1.09% 0.97% 0.66% 8.50% 8.58% 8.55% 7.53% 5.18% 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 ROAA (GAAP) ROAA (Adjusted) (non
Slide 12: Net Interest Margin (FTE), Loan Yield and Cost of Deposits
Net Interest Margin (FTE), Loan Yield and Cost of Deposits Net Interest Margin (FTE) / Adjusted Net Interest Loan Yield / Adjusted Loan Yield (non-GAAP)* Margin (FTE)(non-GAAP)* 6.08% 3.78% 5.93% 5.68% 3.66% 6.06% 3.76% 5.89% 3.54% 5.19% 3.63% 5.64% 3.45% 3.38% 5.16% 3.50% 4.57% 3.43% 3.37% 4.52% 3Q
Slide 13: Noninterest Income / Total Revenue
Noninterest Income / Total Revenue Noninterest Income Noninterest Income Mix - 3Q 2023 $41.2 $37.3 $38.2 $33.4 Other 20% Service Charges $17.2 25% Mortgage Fees and Banking Commissions 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 20% 11% Wealth YTD Total Revenue(1) Management Insurance 16% 8% 7% 2% Commu
Slide 14: Noninterest Expense
Noninterest Expense ($ in thousands) 2Q23 3Q23 Change Mix - 3Q 2023 Salaries and employee benefits $ 70,637 $ 69,458 $ (1,179) Data processing 3,684 3,907 223 Other Net occupancy and equipment 11,865 11,548 (317) 18% Professional Professional fees 4,012 3,338 (674) fees 3% Other 18,967 19,418 451 To
Slide 15: Appendix
[NRENASANT | Understanding You. CORPORATION Appendix
Slide 16: Available Liquidity and Uninsured Deposits
Available Liquidity and Uninsured Deposits Liquidity Sources $7.7 Internal Sources Cash and cash equivalents $ 0.7 Unencumbered securities (1) 1.1 External Sources $4.2 FHLB borrowing capacity 3.1 Federal Reserve Discount Window 0.6 Other(2) 2.2 Total $ 7.7 Uninsured Uninsured to Total Available sou
Slide 17: Securities
Securities Composition Highlights SBA 3% Other 2% • Represents 13.7% of total assets • Duration of 5.0 years • 53% of portfolio HTM Municipal 14% Agency o 10% of HTM are CRA investments MBS 33% o 23% of HTM are Municipals Agency • Unrealized losses in AOCI on securities totaled $278.3 CMBS $2.35 10%
Slide 18: Non-Owner Occupied CRE – Term and Office
Non-Owner Occupied CRE – Term* and Office Non-Owner Occupied CRE – Term* Office (non-medical) Warehouse/Industrial 8% 16% Hotels • $356 million portfolio 20% Self Storage 10% • 0.10% past due or nonaccrual Multi-family Medical Office 9% • Average loan size of $1.0 million 10% Office (non-medical) 9%
Slide 19: Construction
Construction Composition Highlights 1-4 Family 1% • 11.6% of total loans Commercial 3% Owner-Occupied Multi-family • Past due loans of 0.03% 11% 21% Office • Average loan size of $2.0 million 12% Retail 8% • Weighted average LTV of 59.0% 4% Self Storage 6% Warehouse / Industrial 34% Hotels Senior Ho
Slide 20: ACL / Loss Absorption
ACL / Loss Absorption 6/30/2023 9/30/2023 ACL as a % ACL as a % ($ in thousands) ACL of Loans ACL 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 - Commerc
Slide 21: Mortgage Banking
Mortgage Banking Mortgage Banking Income Mix ($ in thousands) 3Q22 2Q23 3Q23 (in %) 3Q22 2Q23 3Q23 Gain on sales of loans, net $ 5,263 $ 4,646 $ 3,297 Wholesale 34 42 46 Fees, net 2,405 2,859 2,376 Retail 66 58 54 Mortgage servicing income, net 5,007 2,266 1,860 Purchase 81 91 90 Mortgage banking in
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