Slide 1: Second Quarter 2016 Investor Presentation
Second Quarter 2016 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: More than 175 banking, lending, financial services and insurance offices
More than 175 banking, lending, financial services and insurance offices 3 Western 32% Northern 23% Portfolio Loans Central 23% Eastern 22% Western 46% Eastern 18% 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
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: Recent Merger with KeyWorth Bank – Completed April 1, 2016
Recent Merger with KeyWorth Bank – Completed April 1, 2016
Slide 8: KeyWorth transaction terms
8 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 9: Strategically advantageous, financially attractive, lower risk
9 Strategically Advantageous • Provides additional scale in the Atlanta MSA with approximately $400 million in assets and a strong core deposit base • Branch footprint provides an increased presence in the attractive northern suburbs of Atlanta • Complementary cultures and business model consisten
Slide 10: Pro Forma Atlanta Highlights
Source: SNL Financial; Company (1) Represents assets and deposits of Renasant’s Atlanta franchise Pro Forma Atlanta Highlights Loans at 3/31/2016 ($Mil.) Deposits at 3/31/2016 ($Mil.) RNST(1) $453 $573 KeyWorth $284 $347 Total $737 $920 Atlanta MSA Franchise 10
Slide 11: Merger assumptions and attractive returns
11 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 • Closing – April 1, 2016 Attractive Returns • Immediately accretive to EPS (e
Slide 12: Renasant at a glance: assets, loans, deposits
Over 175 banking, lending, financial services and insurance offices 12 Assets (2) $8.5 billion Gross Loans (2) $5.9 billion Deposits (2) $6.8 billion Highlights
Slide 13: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
13 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 14: Total assets and deposits growth
• 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 15: Loan growth
2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 Non- Acquired $2,242 $2,573 $2,886 $3,268 $3,275 $3,408 $3,615 $3,830 $4,075 Acquired Covered* $339 $237 $182 $143 $126 $121 $104 $93 $45 Acquired - - $813 $577 $553 $508 $1,558 $1,490 $1,453 Total Loans $2,581 $2,810 $3,881 $3,988 $3,954 $4,037 $5,277 $5
Slide 16: Loan portfolio composition
• Loans totaled $5.6B 27% of portfolio is acquired and carried at fair value • Owner occupied/C&I loans comprise 33% of the non covered loan portfolio Const 7% Land Dev 3% 1-4 Family 32% Non Owner Occupied 23% Owner Occupied 20% C&I 13% Consumer 2% Non-Covered Loans $5.5B 16
Slide 17: 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 20% Other Int Bearing Accts 51% Time Deposits 21% Borrowed Funds 8% 1Q 2016 $6.8B Cost of Funds .37% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2011 2012 2013
Slide 18: 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% 2012 2013 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Marg in Y ie ld /C os t Yield on Earning Assets Cost of Funds Margin 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 Net Interest Income 129,077 133,338 157,201 202
Slide 19: Noninterest income
24% 6% 36% 9% 13% 12% 1Q16 $33.3M Svc Chgs Insurance Mtg Inc 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 Expan
Slide 20: 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 20 40.00% 45.
Slide 21: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
21 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 22: Non-performing 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% 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 Non-Acquired Acquired Covered Acquired As a percentage of total assets 22 Non- Acquired Acquired Covered Acquired NPL’s $14.2M $7.1M $23.2M ORE $
Slide 23: Provision, net charge-offs and allowance coverage
*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% 350.00% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 ($)Provision for Loan
Slide 24: NPLs and early stage delinquencies
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 50 54 35 30 19 21 27 20 19 21 24 22 16 8 9 7 8 8 10 12 6 NPLs 30-89 Days Continued Improvement NPLs and Early Stage Delinquencies (30-89 Days Past Due Loans)* • Loans 30-89 days past due have re
Slide 25: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
25 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 26: 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 4Q15 1Q16 Tangible Common Equity Ratio Renasant Capital 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 Tangible Common Equity 6.34% 6.76% 7.35% 7.71% 6.64% 7.52% 7.65% 7.78% 7.40% 7.57
Slide 27: Summary and investment highlights
27 $8.5B franchise well positioned in attractive markets in the Southeast Merger with Keyworth added approximately $400M in assets, $350M in deposits, $280M in loans and 4 branches in Atlanta MSA Strategic focus on expanding footprint • Acquisition • De Novo • New lines of business Opportunit
Slide 28: Appendix
Appendix 28
Slide 29: 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, $141 million in de
Slide 30: Florida deposit market share
2.8% 2.6% 2.9% 0.0% 1.0% 2.0% 3.0% 4.0% Al ac hu a, FL Co lu m bi a, FL M ar io n, FL Entered the Florida market through the acquisition of Heritage Financial Group, Inc. (Nasdaq: HBOS), which closed on 7/1/15 Moved into FL with 8 full-services branches along I-75 Florida has the 19th largest
Slide 31: Georgia deposit market share
11.0% 7.6% 1.1% 13.3% 0.5% 5.3% 18.6% 0.4% 15.9% 26.7% 2.3% 0.4% 1.8% 27.5% 9.2% 2.5% 0.0% 13.3% 9.7% 0.7% 14.2% 0.0% 8.0% 16.0% 24.0% 32.0% Ap plin g, G A Bar tow , G A Bib b, G A Bu lloc h, G A Ch ath am , G A Ch ero kee , G A Co ok, GA De Ka lb, GA Do ugh erty , G A Eff ing ham , G A For syt h, G
Slide 32: Mississippi deposit market share
32 Deposit Market Share by County – Top 5 Presence in 23 of 27 counties 5 1 Entered the Columbus, MS market in November 2010 and opened an office in Starkville, home of Mississippi State University, during late Q3 ‘11 Columbus Air Force Base trains 1/3 of the nation’s pilots, with an economic im
Slide 33: Tennessee deposit market share
2.3% 10.4% 1.3% 1.2% 0.8% 1.3% 2.1% 0.6% 0.0% 3.0% 6.0% 9.0% 12.0% Bl ou nt , T N Cr oc ke tt, T N Da vi ds on , T N Sh elb y, T N Su lli va n, T N Su m ne r, TN W as hi ng to n, T N W ill iam so n, T N Our Tennessee Operations The Knoxville/Maryville MSA location opened in late Q2 ‘12 East Te
Slide 34: KeyWorth Company Profile
Company Profile Headquarters Johns Creek, GA Bank Established: 2007 Office Locations Johns Creek, GA Dunwoody, GA Duluth, GA Alpharetta, GA Source: SNL Financial Financial Highlights 34 2012 2013 2014 2015 Balance Sheet ($M) Total Assets 348 366 384 400 Total Net Loans 180 211 240 280 Total Deposits
Slide 35: 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 36: Management and 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 36