Slide 1: Second Quarter 2022 Earnings Call
Second Quarter 2022 Earnings Call
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: Overview
Overview Note: Financial data as of June 30, 2022 (1) Total revenue is calculated as net interest income plus noninterest income. Company Snapshot Loans and Deposits by State Assets: $16.6 billion Loans: 10.6 Deposits: 13.8 Equity: 2.1 3 MS 23% AL 24% FL 6% GA 30% TN 17% Loans MS 36% AL 14%FL 3% GA
Slide 4: 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 5: Second Quarter Highlights
Second Quarter Highlights 5 • Net income of $39.7 million with diluted EPS of $0.71 • Net interest margin increased 35 basis points to 3.11% • Loans increased $290.3 million which represents 11.29% annualized net loan growth • Cost of deposits decreased 2 basis points on a linked quarter basis to 0.
Slide 6: Financial Condition
[QRENASANT CORPORATION Financial Condition
Slide 7: Total Assets
Total Assets 7 Note: Dollars in millions $16,022 $16,156 $16,810 $16,864 $16,618 $12 ,000 $12 ,500 $13 ,000 $13 ,500 $14 ,000 $14 ,500 $15 ,000 $15 ,500 $16 ,000 $16 ,500 $17 ,000 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022
Slide 8: Loans and Yields
Loans and Yields 8 Note: 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. A reconciliation of GAAP to non-GAA
Slide 9: Deposit Mix and Pricing
Deposit Mix and Pricing 9 Note: Dollars in millions $13,115 $13,255 $13,906 $13,991 $13,764 0.24% 0.21% 0.18% 0.17% 0.15% 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Noninterest-bearing Interest-bearing Savings Time Cost of deposits
Slide 10: Core Deposit Funding
Core Deposit Funding 35% 48% 8% 7% 2% Noninterest-bearing Interest-bearing** Savings Time < $250,000 Time > $250,000 • 98% of total deposits are considered core deposits* • Average size of commercial and consumer deposit accounts, excluding time deposit accounts, are approximately $94 thousand and $
Slide 11: Liquidity
Liquidity 11 Note: Dollars in millions 81% 76% 73% 74% 76% 91% $1 $1 $1 $1 $1 $1 $1 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 2018 -2019 Average Loans to Average Deposits Average Loans to Average Deposits 23.52% 24.89% 27.84% 26.68% 24.24% $0 $0 $0 $0 $0 $0 $0 $0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 202
Slide 12: Capital Position
Subordinated Notes $335,451 ACL $133,987 Trust Preferred $108,071 Common Equity Tier 1 $1,347,681 1 Capital Position 12 Tier 1 $1,456 Tier 2 $469 Regulatory Capital as of June 30, 2022 • $50 million stock repurchase program will remain in effect through October 2022; however, there was no buyback ac
Slide 13: Asset Quality
Asset Quality
Slide 14: Asset Quality
2.57% 2.00% 2.50% 3.00% 3.50% 4.00% $200,000 $250,000 $300,000 $350,000 $400,000 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Criticized Loans/Total Loans* Criticized Loans % of Total Loans, excl. PPP ($ in thousands) 0.16% 0.00% 0.50% 1.00% 1.50% 2.00% $- $25,000 $50,000 $75,000 $100,000 2Q 2021 3Q 2021
Slide 15: Asset Quality
0.28% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 NPAs/Total Assets* Nonperforming loans OREO % of Assets, excl. PPP ($ in thousands) 0.09% 0.00% 0.20% 0.40% 0.60% 0.80% $- $5,000 $10,000 $15,000 $20,000 2Q 2
Slide 16: ACL Metrics
1.57% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% $140,000 $150,000 $160,000 $170,000 $180,000 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Allowance/Total Loans* Allowance % of Total Loans, excl. PPP ($ in thousands) 373% 200% 250% 300% 350% 400% $140,000 $150,000 $160,000 $170,000 $180,000 2Q 2021 3Q 2021 4Q 2
Slide 17: ACL Summary
ACL Summary ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans SBA Paycheck Protection Program - - - - Commercial, Financial, Agricultural 33,606$ 2.32 30,192$ 2.02 Lease Financing Receivables 1,582 1.76 1,802 1.78 Real Estate - 1-4 Family Mortgage 36,848 1.30 41,910 1.38 Real Estate -
Slide 18: Loss Absorption Capacity
Loss Absorption Capacity 18 ($ in thousands) 6/30/2022 Allowance for Credit Losses on Loans 166,131$ Reserve for Unfunded Commitments 19,935 Purchase Accounting Discounts 12,075 Total Loss Absorption Capacity 198,141$
Slide 19: Profitability
Profitability
Slide 20: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 20 $40.9 $40.1 $37.1 $33.5 $39.7 $48.8 $50.2 $49.2 $42.7 $54.2 1.24% 1.23% 1.19% 1.04% 1.31% 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Net Income P Adj. PPNR (non-GAAP)* Adj. PPNR /Avg. Assets (non-GAAP)* Note: Dollars in millions *Adjusted Pre-Provisio
Slide 21: Diluted Earnings per Share Reported and Adjusted
Diluted Earnings per Share Reported and Adjusted* 21 $.72 $.71 $.66 $.60 $.71 $.73 $.71 $.68 $.60 $.72 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Diluted EPS (GAAP) Diluted EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP
Slide 22: Profitability Ratios
Profitability Ratios 22 7.40% 7.16% 6.59% 6.05% 7.31% 13.64% 13.13% 12.31% 10.99% 13.81% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 ROE (GAAP) ROTCE (Adjusted) (non-GAAP)* *ROAA (Adjusted) and ROTCE (Adjusted) are non-GAAP financial measures. A
Slide 23: Net Interest Income (FTE) & Net Interest Margin
Net Interest Income (FTE) & Net Interest Margin 23 $111.2 $105.0 $103.3 $101.4 $115.3 3.19% 2.93% 2.81% 2.76% 3.11% 2.92% 2.76% 2.73% 2.71% 3.00% 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Interest Incom
Slide 24: Noninterest Income Contribution
Note: Dollars in thousands $47,610 $50,755 $47,582 $37,458 $37,214 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Service Charges Fees and Commissions Insurance Wealth Management Mortgage Banking Securities Gains Other Noninterest Income 24 Service Charges 26% Fees and Commissions 13% Insurance 7% Wealth M
Slide 25: Mortgage Banking
Mortgage Banking 25 Mortgage MixMortgage banking income Gain on sale margin* *Gain on sale margin excludes pipeline fair value adjustments included in “Gain on sales of loans, net” in the table above. ($ in thousands) 2Q21 1Q22 2Q22 Gain on sales of loans, net 17,581$ 6,047$ 3,490$ Fees, net 4,519 3
Slide 26: Noninterest Expense and Efficiency Ratio
Noninterest Expense and Efficiency Ratio 26 Salaries and employee benefits 67% Data processing 4% Net occupancy and equipment 11% Intangible amortization 1% Other 17% Q2 2022 – Noninterest Expense Mix($ in thousands) 1Q22 2Q22 Change Salaries and employee benefits 62,239$ 65,580$ 3,341$ Data process
Slide 27: NAVAN
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