Slide 1: 3rd Quarter 2016 Investor Presentation
3rd 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 companies to provide information about companies’ anticipated future financial per
Slide 3: More than 175 banking, lending, financial services and insurance offices
More than 175 banking, lending, financial services and insurance offices 3 Western 30% Northern 22% Eastern 26% Central 22% Portfolio Loans Western 44% Northern 13% Eastern 26% Central 17% Total Deposits
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: Footprint and 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: Highlights
Over 175 banking, lending, financial services and insurance offices 7 Assets $8.5 billion Gross Loans $6.0 billion Deposits $6.7 billion Highlights
Slide 8: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
8 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 9: Total assets and deposits
• 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 10: Loan growth
2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Non- Acquired $2,242 $2,573 $2,886 $3,268 $3,274 $3,408 $3,607 $3,830 $4,075 $4,292 Acquired Covered* $339 $237 $182 $143 $126 $121 $101 $93 $45 $42 Acquired - - $813 $577 $554 $508 $1,570 $1,490 $1,453 $1,631 Total Loans $2,581 $2,810 $3,881 $3,988
Slide 11: Loan portfolio composition
• Loans totaled $5.965B 28% of portfolio is acquired and carried at fair value • Owner occupied/C&I loans comprise 32% of the non covered loan portfolio Const 8% Land Dev 4% 1-4 Family 29% Non Owner Occupied 25% Owner Occupied 20% C&I 12% Consumer 2% Non-Covered Loans $5.9B 11
Slide 12: 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 50% Time Deposits 22% Borrowed Funds 8% 2Q 2016 $7.3B Cost of Funds .38% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2011 2012 2013
Slide 13: 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 2Q16 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 2Q16 Net Interest Income 129,286 133,338 1
Slide 14: Noninterest income
22% 6% 39% 8% 15% 10% 2Q16 $34.3M* 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 Expa
Slide 15: 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, 2015 and 2016 15 40.0
Slide 16: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
16 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 17: Nonperforming 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 2Q16 Non-Acquired Acquired Covered Acquired 75 22 As a percentage of total assets 83 17 Non- Acquired Acquired Covered Acquired NPL’s $12.0M $4.2
Slide 18: Provision, net charge-offs and allowance coverage
*Ratios excludes loans and assets acquired in connection with the recent acquisitions or loss share transactions 0.00% 50.00% 100.00% 150.00% 200.00% 250.00% 300.00% 350.00% 400.00% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 ($)Provision for L
Slide 19: NPLs and early stage delinquencies
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 54 35 30 19 20 19 21 16 15 14 12 22 16 8 9 10 12 6 8 7 7 9 NPLs 30-89 Days Continued Improvement NPLs and Early Stage Delinquencies (30-89 Days Past Due Loans)* • NPL’s to total loans were 0.25%
Slide 20: Enhance Profitability, Capitalize on Opportunities, Manage Problem Credits, Build Capital
20 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 21: Renasant capital ratios
4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Tangible Common Equity Ratio* Renasant Capital 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Tangible Common Equity* 6.34% 6.76% 7.35% 7.71% 6.64% 7.52% 7.65% 7.78% 7.40% 7.54% 7
Slide 22: Summary: $8.5B franchise in attractive Southeast markets
22 $8.5B franchise well positioned in attractive markets in the Southeast Merger with KeyWorth added $399M in assets, $347M in deposits, $284M in loans and 4 branches in Atlanta MSA Strategic focus on expanding footprint • Acquisition • De Novo • New lines of business Opportunity for further
Slide 23: Appendix
Appendix 23
Slide 24: Alabama deposit market share by county
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 Merger with HBOS added approximately $90.0 million in loans, $141 million in deposits
Slide 25: Florida deposit market share by county
2.8% 2.6% 2.9% 0.0% 1.0% 2.0% 3.0% 4.0% Al ac hu a, FL Co lu m bi a, FL M ar io n, FL Entered the Florida market through the acquisition of Heritage Financial Group, Inc. (Nasdaq: HBOS), which closed on 7/1/15 Moved into FL with 8 full-services branches along I-75 Florida has the 19th largest
Slide 26: Georgia deposit market share by county
11.0% 7.6% 1.1% 13.3% 0.5% 5.3% 18.6% 0.4% 15.9% 26.7% 2.3% 0.4% 1.8% 27.5% 9.2% 2.5% 0.0% 13.3% 9.7% 0.7% 14.2% 0.0% 8.0% 16.0% 24.0% 32.0% Ap plin g, G A Bar tow , G A Bib b, G A Bu lloc h, G A Ch ath am , G A Ch ero kee , G A Co ok, GA De Ka lb, GA Do ugh erty , G A Eff ing ham , G A For syt h, G
Slide 27: Mississippi deposit market share by county
27 Deposit Market Share by County – Top 5 Presence in 23 of 27 counties 5 1 Entered the Columbus, MS market in November 2010 and opened an office in Starkville, home of Mississippi State University, during late Q3 ‘11 Columbus Air Force Base trains 1/3 of the nation’s pilots, with an economic im
Slide 28: Tennessee deposit market share by county
2.3% 10.4% 1.3% 1.2% 0.8% 1.3% 2.1% 0.6% 0.0% 3.0% 6.0% 9.0% 12.0% Bl ou nt , T N Cr oc ke tt, T N Da vi ds on , T N Sh elb y, T N Su lli va n, T N Su m ne r, TN W as hi ng to n, T N W ill iam so n, T N Our Tennessee Operations The Knoxville/Maryville MSA location opened in late Q2 ‘12 East Te
Slide 29: Tangible common equity ratio reconciliation
29 2009 2010 2011 2012 2013 2014 Actual shareholders' equity (GAAP) 410,122$ 469,509$ 487,202$ 498,208$ 665,652$ 711,651$ Intangibles 191,357 191,867 192,326 190,925 304,330 297,330 Actual tangible shareholders' equity (non-GAAP) 218,765$ 277,642$ 294,876$ 307,283$ 361,322$ 414,321$ Actual total ass
Slide 30: Contact information
E. Robinson McGraw Chairman 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 30