Slide 1: Second Quarter 2024 Investor Presentation
Second Quarter 2024 Investor Presentation
Slide 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 Exchange Act of 1934, as amended.
Slide 3: Snapshot and Footprint
Snapshot Assets: $17.5 billion Loans: 12.6 Deposits: 14.3 Equity: 2.4 Loans and Deposits by State MS 18% AL 30% FL 8% Other 1% GA 29% TN 14% Loans MS 39% AL 14% FL 3% GA 32% TN 12% Deposits Footprint *Republic Business Credit operates on a nationwide basis. Locations in California, Illinois and Texa
Slide 4: Second quarter highlights
• Net income of $38.8 million with diluted EPS of $0.69 • Net interest margin increased 1 basis point to 3.31% on a linked quarter basis • Loans increased $104.2 million, or 3.4% annualized • Deposits increased $18.1 million; excluding brokered deposits, core deposits increased $201.8 million. Nonin
Slide 5: Balance Sheet
Balance Sheet $14,095 $14,157 $14,077 $14,237 $14,255 $13 ,950 $14 ,000 $14 ,050 $14 ,100 $14 ,150 $14 ,200 $14 ,250 $14 ,300 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Deposits $11,931 $12,168 $12,351 $12,501 $12,605 $11 ,400 $11 ,600 $11 ,800 $12 ,000 $12 ,200 $12 ,400 $12 ,600 $12 ,800 2Q 2023 3Q 20
Slide 6: Core Deposit Funding Diversification
6 Core Deposit Funding Diversification 25% 50% 6% 17% 2% Noninterest-bearing Interest-bearing* Savings Time Brokered Granularity • Average deposit account balance is $32 thousand; commercial and consumer deposit accounts, excluding time deposit accounts, averaged approximately $82 thousand and $13 t
Slide 7: Liquidity Position
7 Liquidity Position Cash and Securities to Total Assets 18.4% 16.9% 17.0% 16.2% 15.9% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Loans to Deposits 85% 86% 88% 88% 88% $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Average Interest Earning Asset M
Slide 8: Capital
8 Capital 12.82% 13.00% 13.23% 13.39% 13.45% 7.37% 7.55% 7.87% 8.04% 8.16% $0 $0 $0 $0 $0 $0 $0 $0 $0 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Equity to Assets / Tangible Common Equity Ratio Shareholders' equity to assets Tangible common equity ratio (non-GAAP)* $39.35 $39.78 $40.92 $41.25 $41.77 $21
Slide 9: Asset Quality
9 Asset Quality 2.32% 2.27% 2.16% 2.76% 2.62% 2.00% 2.50% 3.00% 3.50% 4.00% 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Criticized Loans/Total Loans 0.10% 0.11% 0.44% 0.48% 0.23% 0.0% 0.5% 1.0% 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Loans 30-89 Days Past Due/ Total Loans 0.13% 0.06% 0.06% 0.01% 0.18% 0
Slide 10: Profitability
10 Profitability Note: Dollars in millions except per share amounts. *Adjusted Diluted EPS, Adjusted Net Income, Adjusted Net Interest Income (FTE), PPNR and Adjusted PPNR are non-GAAP financial measures. See slides 23, 24, 25 and 27 in the appendix for a description of exclusions and a reconciliati
Slide 11: Profitability Ratios
11 Profitability Ratios *Adjusted ROAA, Adjusted ROTCE, Pre-Provision Net Revenue/Average Assets, Adjusted Pre-Provision Net Revenue/Average Assets and Adjusted Efficiency Ratio are non-GAAP financial measures. See slides 24, 26 and 29 in the appendix for a description of the exclusions and a reconc
Slide 12: Net Interest Margin (FTE), Loan Yield and Cost of Deposits
12 Net Interest Margin (FTE), Loan Yield and Cost of Deposits *Adjusted Net Interest Margin (FTE) and Adjusted Loan Yield are non -GAAP financial measures. See slides 27 and 28 in the appendix for a description of the exclusions and a reconciliation of these non-GAAP financial measures to GAAP. 3.45
Slide 13: Noninterest Income / Total Revenue
Noninterest Income / Total Revenue $17.2 $38.2 $20.4 $41.4 $38.8 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Noninterest Income 86% 4% 8% 2% YTD Total Revenue(1) Community Banking Wealth Management Mortgage Insurance Service Charges 27% Fees and Commissions 10% Insurance 7% Wealth Management 15% Mortgag
Slide 14: Noninterest Expense
14 Noninterest Expense ($ in thousands) 1Q24 2Q24 Change Salaries and employee benefits 71,470$ 70,731$ (739)$ Data processing 3,807 3,945 138 Net occupancy and equipment 11,389 11,844 455 Advertising and public relations 4,886 3,807 (1,079) Other 21,360 21,649 289 Total 112,912$ 111,976$ (936)$ $11
Slide 15: Appendix
Appendix
Slide 16: Available Liquidity and Uninsured Deposits
16 Available Liquidity and Uninsured Deposits $7.8 $4.5 Available sources Uninsured and uncollateralized deposits Uninsured Deposits % of Total Deposits Uncollateralized 4.5$ 31.5 % Collateralized public funds 1.7 11.9 Total 6.2$ 43.4 % Internal Sources Cash and cash equivalents 0.9$ Unencumbered se
Slide 17: Securities Composition (at Amortized Cost)
17 Securities Composition (at Amortized Cost) Highlights • Represents 11.0% of total assets • Duration of 4.8 years • 61% of portfolio HTM o 10.5% of HTM are CRA investments o 25.9% of HTM are Municipals • Unrealized losses in AOCI on securities totaled $216.9 million ($162.8 million, net of tax); u
Slide 18: Non-Owner Occupied CRE – Term
18 Non-Owner Occupied CRE – Term* with Office and Multi-Family Non-Owner Occupied CRE – Term* Note: As of June 30, 2024. LTV is calculated using the most recent appraisal available. *Excludes construction Office (non-medical) 17% 10% 10% 22% 8% 8% 16% 8% 1% Warehouse/Industrial Hotels Self Storage M
Slide 19: Construction Composition
19 Construction Composition Note: As of June 30, 2024; LTV is calculated using the most recent appraisal available. Highlights 20% 6% 38% 6% 5% 10% 10% 3% 2% 1-4 Family Commercial Owner-Occupied Multi-family Office Retail Self Storage Warehouse / Industrial Hotels Senior Housing • 10.8% of total loa
Slide 20: ACL / Loss Absorption
Forward-Looking Statements 20 ACL / Loss Absorption ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans Commercial, Financial, Agricultural 45,922$ 2.46 44,952$ 2.43 Lease Financing Receivables 2,554 2.38 2,515 2.45 Real Estate - 1-4 Family Mortgage 47,532 1.39 47,344 1.38 Real Estate -
Slide 21: Mortgage Banking
21 Mortgage Banking Mortgage Banking Income ($ in thousands) 2Q23 1Q24 2Q24 Gain on sales of loans, net 4,646$ 4,535$ 5,199$ Fees, net 2,859 1,854 2,866 Mortgage servicing income, net 2,266 4,981 1,633 Mortgage banking income, net 9,771$ 11,370$ 9,698$ $0.6 $0.5 $0.3 $0.4 $0.6 $- $0 $0 $0 $0 $1 $1 $
Slide 22: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non- GAAP Disclosures
Slide 23: Pre-Provision Net Revenue and Adjusted Pre-Provision Net Revenue
Forward-Looking Statements 23 Reconciliation of Non-GAAP Disclosures Pre-Provision Net Revenue and Adjusted Pre-Provision Net Revenue $ in thousands 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Net income (GAAP) 28,643$ 41,833$ 28,124$ 39,409$ 38,846$ Income taxes 6,634 10,766 3,787 9,912 9,666 Provision
Slide 24: Pre-Provision Net Revenue/Average Assets and Adjusted
24 Reconciliation of Non-GAAP Disclosures Pre-Provision Net Revenue/Average Assets and Adjusted Pre-Provision Net Revenue/Average Assets $ in thousands 2Q 2023 3Q 2023 4Q 2023 Net income (GAAP) 28,643$ 41,833$ 28,124$ 39,409$ 38,846$ Gain on extinguishment of debt - - (620) (56) - Gain on sale of MS
Slide 25: Adjusted Diluted Earnings Per Share
Forward-Looking Statements 25 Reconciliation of Non-GAAP Disclosures Adjusted Diluted Earnings Per Share $ in thousands 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Net income (GAAP) 28,643$ 41,833$ 28,124$ 39,409$ 38,846$ Gain on extinguishment of debt - - (620) (56) - Gain on sale of MSR - - (547) (3,4
Slide 26: Return on Average Tangible Common Equity (Adjusted)
26 Reconciliation of Non-GAAP Disclosures Return on Average Tangible Common Equity (Adjusted) $ in thousands 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Net income (GAAP) 28,643$ 41,833$ 28,124$ 39,409$ 38,846$ Gain on extinguishment of debt - - (620) (56) - Gain on sale of MSR - - (547) (3,472) - Losse
Slide 27: Adjusted Net Interest Income (FTE) and Adjusted Net Interest Margin
Forward-Looking Statements 27 Reconciliation of Non-GAAP Disclosures Adjusted Net Interest Income (FTE) and Adjusted Net Interest Margin $ in thousands 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Net interest income (FTE) (GAAP) 133,085$ 130,131$ 128,595$ 125,850$ 127,598$ Less: Net interest income coll
Slide 28: Adjusted Loan Yield
28 Reconciliation of Non-GAAP Disclosures Adjusted Loan Yield $ in thousands 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Loan interest income (FTE) (GAAP) 175,549$ 183,521$ 190,857$ 194,640$ 200,670$ Less: Net interest income collected on problem loans 364 (820) 283 123 (146) Accretable yield recognized
Slide 29: Adjusted Efficiency Ratio
Forward-Looking Statements 29 Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio $ in thousands 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Net interest income (FTE) (GAAP) 133,085$ 130,131$ 128,595$ 125,850$ 127,598$ Total noninterest income (GAAP) 17,226 38,200 20,356 41,381 38,762 Gain
Slide 30: Tangible Common Equity and Tangible Book Value
30 Reconciliation of Non-GAAP Disclosures Tangible Common Equity and Tangible Book Value $ in thousands 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Shareholders' equity (GAAP) 2,208,628$ 2,233,323$ 2,297,383$ 2,322,350$ 2,354,701$ Intangibles 1,013,046 1,011,735 1,010,460 1,009,248 1,008,062 Tangible sh
Slide 31: Slide 31