Renasant Corporation · NYSE:RNST
Renasant — Investor Presentation (February 2018)
35 slides from Renasant's investor presentation, Feb 7, 2018
Slide 1: Q1 2018 Investor Presentation
Q1 2018 Investor Presentation
Slide 2: Forward-looking statements
This presentation contains various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 about Renasant Corporation (“Renasant,” “we,” “our,” or “us”) that are subject to risks and uncertainties. Congress passed the Private Securities Litigation Refo
Slide 3: More than 180 banking, lending, wealth management and insurance offices
More than 180 banking, lending, wealth management and insurance offices 3 Western 28% Northern 28% Eastern 24% Central 20% Portfolio Loans* [CATEG ORY NAME] 41% Northern 19% [CATEG ORY NAME] 23% Central 17% Total Deposits* *As of December 31, 2017
Slide 4: Enhance Profitability, Capitalize on Opportunities, Risk Management, Capital Ratios
4 Enhance Profitability Capitalize on Opportunities Focus on Risk Management 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 manage capit
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: Banking, lending, wealth management and insurance offices; Highlights
Over 180 banking, lending, wealth management and insurance offices 7 Assets $9.8 billion Gross Loans $7.6 billion Deposits $7.9 billion Highlights* *As of December 31, 2017
Slide 8: Enhance Profitability, Capitalize on Opportunities, Risk Management, Capital Ratios
8 Enhance Profitability Capitalize on Opportunities Focus on Risk Management 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 manage capit
Slide 9: Reduced balance sheet to manage assets below $10 billion
• Reduced balance sheet to manage assets below $10 billion at December 31, 2017 • Deleverage strategy included: • Reduction of $479 million in investment securities • Reduction of $99 million in mortgage loans held for sale ($ in millions) 9 $0 $2,000 $4,000 $6,000 $8,000 $10,000 Total Assets Deposi
Slide 10: Loan growth
($ in millions) 2013 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Not Purchased $2,886 $3,268 $3,830 $4,075 $4,292 $4,526 $4,714 $4,834 $5,059 $5,294 $5,588 Purchased Covered* $182 $143 $93 $45 $42 $30 - - - - - Purchased Not Covered $813 $577 $1,490 $1,453 $1,631 $1,549 $1,489 $1,402 $1,312 $2
Slide 11: Loan portfolio composition at December 31, 2017
At December 31, 2017, loans totaled $7.6 billion 73% Not Purchased 27% Purchased Const 8% Land Dev 2% 1-4 Family 31% Non Owner Occupied 25% Owner Occupied 18% C&I 14% Consumer 2% 11
Slide 12: ADC and CRE loan concentration levels
12 Acquisition, Development & Construction (ADC) and Commercial Real Estate (CRE) C&D and CRE Loan Concentration Levels 82% 83% 87% 91% 82% 81% 66% 69% 76% 80% 0% 20% 40% 60% 80% 100% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 265% 258% 267% 277% 251% 231% 227% 230% 242% 244% 0% 50% 100% 150%
Slide 13: Deposits and cost of funds
Non Interest DDA 22% Other Int Bearing Accts 52% Time Deposits 22% Borrowed Funds 4% 4Q 2017 Cost of Funds .52% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2013 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Non Interest Bearing Demand Deposits ($
Slide 14: 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% 2013 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Marg in Y ie ld /C os t Yield on Earning Assets Cost of Funds Margin ($ in thousands) 2013 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Net Interest Income
Slide 15: Noninterest income
27% 6% 31% 9% 17% 10% 4Q17 $32M* Svc Chgs Insurance Mtg Inc Wealth Mgmt Fees & Comm Other • Diversified sources of noninterest income • Opportunities for growing Non Interest Income Expansion of Trust Division Wealth Management services into larger, metropolitan markets Expansions within our de no
Slide 16: Noninterest expense and efficiency ratio
• Continued focus on managing noninterest expenses and improving efficiency • Provided resources for eight de novo expansions since 2011 • Fluctuations in mortgage loan expense driven by higher mortgage production • Sub-60% efficiency ratio since 3Q17 16 40.00% 45.00% 50.00% 55.00% 60.00% 65.00% 70.
Slide 17: Enhance Profitability, Capitalize on Opportunities, Risk Management, Capital Ratios
17 Enhance Profitability Capitalize on Opportunities Focus on Risk Management 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 manage capi
Slide 18: Nonperforming assets
Not purchased NPAs are now below pre-credit cycle levels Loss-share agreements with FDIC were terminated in 4Q 2016 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Not Purchased Purchased Covered Purchased Not Covered As a percentage of t
Slide 19: Provision, net charge-offs and allowance for loan losses
*Ratios excludes loans and assets purchased in connection with the recent acquisitions or loss share transactions. 0% 50% 100% 150% 200% 250% 300% 350% 400% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2013 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 ($)Provision for Loan Losses ($)Net Charge
Slide 20: Strong credit quality metrics
$0 $5,000 $10,000 $15,000 $20,000 $25,000 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 NPLs 30-89 Days Strong Credit Quality Metrics NPLs and Early Stage Delinquencies (30-89 Days Past Due Loans)* • NPL‟s to total loans were 0.24% as of December 31, 2017 20 *Amounts exclude
Slide 21: Enhance Profitability, Capitalize on Opportunities, Risk Management, Capital Ratios
21 Enhance Profitability Capitalize on Opportunities Focus on Risk Management 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 manage capi
Slide 22: Renasant capital
4.50% 5.50% 6.50% 7.50% 8.50% 9.50% 10.50% 2013 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Tangible Common Equity Ratio* Renasant Capital 2013 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Tangible Common Equity* 6.64% 7.52% 7.54% 7.52% 7.80% 8.03% 9.00% 9.16% 9.31% 9.03% 9.56% Leverage 8
Slide 23: Consistent and strong dividend
23 Dividends Per Share – Annual Payout $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 14 20 1 5 20 1 6 20 1 7 Consistent and Strong Dividend $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20 2Q14 4Q14 2Q1
Slide 24: Franchise well positioned in attractive Southeast markets
24 $9.8B franchise well positioned in attractive markets in the Southeast Merger with Metropolitan BancGroup, Inc. added $1.4B in assets, $940M in deposits and $970M in loans on the acquisition date Strategic focus on expanding footprint • Acquisition • De Novo • New lines of business Opport
Slide 25: Appendix
Appendix 25
Slide 26: Alabama market and deposit market share
Mazda and Toyota announced $1.6 billion investment creating up to 4,000 jobs by 2021 Ranked #6 on the Area Development Top States for Doing Business 2016 Honda, Hyundai, Mercedes-Benz and Toyota increasingly large presence Merger with Heritage Financial Group, Inc. (Nasdaq: HBOS) in July 201
Slide 27: Florida market and deposit market share
Entered the Florida market through the acquisition of HBOS. Moved into FL with 6 full-services branches along I-75 Opened Mortgage Production Offices in Destin and Jacksonville in Q1 2017 Florida would have the 19th largest economy in the world, if it were a country Publix Super Markets, S
Slide 28: Georgia deposit market share by county
28 Deposit Market Share by County – Top 5 Presence in 10 of 22 counties 1 7 Deposit Market Share Rank 4 21 8 2 5 4 Georgia Deposit Market Share Source: SNL Financial Green highlighting denotes top 5 deposit market share in respective county Deposit data as of 6/30/17 4 11 2 3 9 12 12 3 17 24 20 4 0.
Slide 29: Mississippi market and deposit market share
Increased presence in Mississippi with the recent acquisition of Metropolitan BancGroup, Inc., which closed 1/17/17 Added 4-full service branches Columbus Air Force Base trains 1/3 of the nation‟s pilots, with an economic impact of $250 million Yokohama Tire Corporation announces plans to lo
Slide 30: Tennessee deposit market share by county
30 Deposit Market Share by County – Top 5 Presence in 2 of 8 counties Deposit Market Share Rank 12 17 8 11 5 Tennessee Deposit Market Share 16 12 Source: SNL Financial Green highlighting denotes top 5 deposit market share in respective county Deposit data as of 6/30/17 3.7% 1.1% 0.8% 2.7% 2.2% 1.2%
Slide 31: Tangible Common Equity Reconciliation of Non-GAAP Disclosures
31 Tangible Common Equity Reconciliation of Non-GAAP Disclosures
Slide 32: Reconciliation of Non-GAAP Disclosures: Efficiency Ratio
32 Reconciliation of Non-GAAP Disclosures Efficiency Ratio
Slide 33: Efficiency Ratio (Excluding Mortgage) Reconciliation
33 Efficiency Ratio (Excluding Mortgage) Reconciliation of Non-GAAP Disclosures
Slide 34: Non Interest Income Reconciliation of Non-GAAP Disclosures
34 Non Interest Income Reconciliation of Non-GAAP Disclosures
Slide 35: Contact: E. Robinson McGraw and Kevin D. Chapman
E. Robinson McGraw Chairman and Chief Executive Officer Kevin D. Chapman Senior 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 35