Slide 1: Second Quarter 2021 Earnings Call
Second Quarter 2021 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, 2021 (1) Total revenue is calculated as net interest income plus noninterest income. Company Snapshot Loans and Deposits by State Assets: $16.0 billion Loans: 10.1 Deposits: 13.1 Equity: 2.2 3 MS 24% AL 21% FL 5% GA 32% TN 18% Loans MS 37% AL 12%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 $40.9 million and diluted EPS of $0.72 • Although mortgage production remained strong during the quarter, mortgage banking income began to normalize as gain on sale margins compressed • As part of the Company’s efficiency initiatives, 7 locations were clos
Slide 6: Financial Condition
[NRENASANT CORPORATION Financial Condition
Slide 7: Total Assets
Total Assets 7 Note: Dollars in millions $14,897 $14,809 $14,930 $15,623 $16,022 $10 ,000 $11 ,000 $12 ,000 $13 ,000 $14 ,000 $15 ,000 $16 ,000 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Slide 8: Loans and Yields
Loans and Yields 8Note: 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. See slide 32 in the appendix for a d
Slide 9: Deposit Mix and Pricing
Deposit Mix and Pricing 9 Note: Dollars in millions $11,846 $11,934 $12,059 $12,737 $13,115 0.49% 0.40% 0.33% 0.27% 0.24% 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Noninterest-bearing Interest-bearing Savings Time Cost of deposits
Slide 10: Liquidity
Liquidity 10 Note: Dollars in millions $617 $414 $633 $1,262 $1,606 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Cash and Cash Equivalents $1,303 $1,293 $1,343 $1,536 $2,164 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 $2,100 $2,300 Q2 2020 Q
Slide 11: Capital Position
Capital Position 11 Tier 1 $1,385 Tier 2 $348 Regulatory Capital as of June 30, 2021 • $50 million stock repurchase program in effect until October 2021 • Consistent dividend payment history, including through the 2008 financial crisis • Callable subordinated debt in 2021: • July 2021 - $15 million
Slide 12: Strong Capital Position
Strong Capital Position 12 * Tangible Common Equity is a non-GAAP financial measure. See slide 34 in the appendix for a description of the exclusions and a reconciliation of this non- GAAP financial measure to GAAP. Ratio 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Minimum to be Well Capitalized Tangibl
Slide 13: Asset Quality
[NRENASANT CORPORATION Asset Quality
Slide 14: Asset Quality
2.09% 0.00% 1.00% 2.00% 3.00% 4.00% $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Classified Loans/Total Loans* Classified Loans % of Total Loans, excl. PPP ($ in thousands) 0.15% 0.00% 0.50% 1.00% 1.50% 2.00% $- $25,000 $50,000 $75,000 $100,000 2Q 2
Slide 15: Asset Quality
0.39% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 NPAs/Total Assets* Nonperforming loans OREO % of Assets ($ in thousands) 0.03% 0.00% 0.20% 0.40% 0.60% 0.80% $- $5,000 $10,000 $15,000 $20,000 2Q 2020 3Q 2020
Slide 16: ACL Metrics
1.74% 0.00% 0.50% 1.00% 1.50% 2.00% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Allowance/Total Loans* Allowance % of Total Loans, excl. PPP ($ in thousands) 305% 0% 100% 200% 300% 400% 500% $- $20,000 $40,000 $60,000 $80,00
Slide 17: ACL Summary
ACL Summary ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans SBA Paycheck Protection Program - - - - Commercial, Financial, Agricultural 39,031$ 2.77 36,994$ 2.67 Lease Financing Receivables 1,624 2.14 1,511 2.04 Real Estate - 1-4 Family Mortgage 32,165 1.19 31,303 1.16 Real Estate -
Slide 18: Loss Absorption Capacity
Loss Absorption Capacity 18 * Allowance to total loans (excluding PPP) is a non-GAAP financial measure. See slide 35 in the appendix for a reconciliation of this non-GAAP financial measure to GAAP. ($ in thousands) $ Amount Allowance for Credit Losses on Loans 172,354$ Reserve for Unfunded Commitmen
Slide 19: Profitability
[NRENASANT CORPORATION Profitability
Slide 20: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 20 $20.1 $30.0 $31.5 $57.9 $40.9 $65.6 $63.2 $57.4 $62.3 $48.8 1.79% 1.68% 1.53% 1.66% 1.24% 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 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 $.36 $.53 $.56 $1.02 $.72 $.52 $.53 $.68 $.85 $.73 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 EPS (GAAP) EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial measure. See slid
Slide 22: Profitability Ratios
Profitability Ratios 22 3.85% 5.63% 5.88% 10.81% 7.40% 11.01% 10.81% 13.52% 16.68% 13.64% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 ROE (GAAP) ROTCE (Adjusted) (non-GAAP)* * ROAA (Adjusted) and ROTCE (Adjusted) are non-GAAP financial mea
Slide 23: Core Net Interest Income & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 23 $107.5 $107.9 $110.0 $111.3 $111.2 3.38% 3.29% 3.35% 3.37% 3.19% 3.26% 3.23% 3.22% 3.12% 2.92% 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Int
Slide 24: Noninterest Income and Mortgage Banking
Note: Dollars in thousands $64,170 $70,928 $62,864 $81,037 $47,610 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Service Charges Fees and Commissions Insurance Wealth Management Mortgage Banking Securities Gains Other Noninterest Income 24 ($ in thousands) 2Q20 1Q21 2Q21 Gain on sales of loans, net 46,560
Slide 25: Efficiency Ratio
69% 65% 71% 60% 68% 61% 63% 64% 64% 67% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Efficiency Ratio (GAAP) Adjusted Efficiency Ratio (non-GAAP)* Efficiency Ratio 25 *Adjusted Efficiency Ratio is a non-GAAP financial measure. See slide 33 in the appendix for a description of exclusions and a reconciliat
Slide 26: Appendix
[NRENASANT CORPORATION Appendix
Slide 27: Adjusted Pre-Provision Net Revenue Reconciliation
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue 27 $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net income (GAAP) 20,130$ 29,992$ 31,521$ 57,908$ 40,867$ Income taxes 4,637 7,612 6,818 16,842 7,545 Provision for credit losses (including unfunded commitments) 29,50
Slide 28: Adjusted PPNR/Average Assets Reconciliation
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets 28 $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net income (GAAP) 20,130$ 29,992$ 31,521$ 57,908$ 40,867$ Debt prepayment penalties 90 28 3 - - MSR valuation adjustment 4,951 (828) (1,968) (13,561) - R
Slide 29: Diluted Earnings Per Share Reconciliation
Reconciliation of Non-GAAP Disclosures 29 Diluted Earnings Per Share $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net income (GAAP) 20,130$ 29,992$ 31,521$ 57,908$ 40,867$ Debt prepayment penalties 90 28 3 - - MSR valuation adjustment 4,951 (828) (1,968) (13,561) - Restructuring charges -
Slide 30: Return on Average Tangible Common Equity Reconciliation
Reconciliation of Non-GAAP Disclosures 30 Return on Average Tangible Common Equity (Adjusted) $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net income (GAAP) 20,130$ 29,992$ 31,521$ 57,908$ 40,867$ Debt prepayment penalties 90 28 3 - - MSR valuation adjustment 4,951 (828) (1,968) (13,561) -
Slide 31: Core Net Interest Income and Margin Reconciliation
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin 31 $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net interest income (FTE) (GAAP) 107,457$ 107,885$ 110,024$ 111,264$ 111,205$ Less: Net interest income collected on problem loans 384 282 128
Slide 32: Core Loan Yield Reconciliation
Reconciliation of Non-GAAP Disclosures Core Loan Yield 32 $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Loan interest income (FTE) (GAAP) 113,727$ 112,764$ 113,457$ 113,072$ 110,785$ Less: Net interest income collected on problem loans 384 282 128 2,180 1,339 Accretable yield recognized on
Slide 33: Adjusted Efficiency Ratio Reconciliation
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio 33 $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net interest income (FTE) (GAAP) 107,457$ 107,885$ 110,024$ 111,264$ 111,205$ Total noninterest income (GAAP) 64,170 70,928 62,864 81,037 47,610 Securities gains (losses) 31 - 1
Slide 34: Tangible Common Equity and Tangible Book Value Reconciliation
Reconciliation of Non-GAAP Disclosures Tangible Common Equity and Tangible Book Value 34 $ in thousands 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Actual shareholders' equity (GAAP) 2,082,946$ 2,104,300$ 2,132,578$ 2,173,701$ 2,203,807$ Intangibles 973,214 971,481 969,823 968,225 966,686 Actual tangibl
Slide 35: Asset Quality Ratios excluding PPP loans
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans 35 $ in thousands Q2 2020 Q3 2020 Q4 2020 1Q 2021 2Q 2021 Total loans (GAAP) 10,997,304$ 11,084,738$ 10,933,647$ 10,688,408$ 10,149,242$ Less: PPP loans 1,281,278 1,307,972 1,128,703 860,864 246,931 Adjusted total loans
Slide 36: Asset Quality Ratios excluding PPP loans, continued
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued 36 $ in thousands Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Total average loans (GAAP) 10,616,147$ 11,041,684$ 11,019,505$ 10,802,991$ 10,478,121$ Less: Average PPP loans 866,078 1,305,229 1,252,990 985,561 628,
Slide 37: NAVAN
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