Slide 1: Third Quarter 2022 Investor Presentation
Third Quarter 2022 Investor Presentation
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation may contain various statements about Renasant Corporation (“Renasant,” ”the Company,” “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
Slide 3: Who We Are
3 Business model prioritizing core funding, asset quality and capital strength Operate in attractive, high growth markets throughout the Southeast History of organic growth and opportunistic acquisitions Focused on improving operating leverage Who We Are
Slide 4: Overview: Company Snapshot
Overview Note: Financial data as of September 30, 2022 (1) Total revenue is calculated as net interest income plus noninterest income. Company Snapshot Loans and Deposits by State Assets: $16.5 billion Loans: 11.1 Deposits: 13.4 Equity: 2.1 4 MS 20% AL 27% FL 7% GA 30% TN 16% Loans MS 38% AL 15% FL
Slide 5: 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 6: Third Quarter Highlights
Third Quarter Highlights 6 • Net income of $46.6 million with diluted EPS of $0.83 • Net interest margin increased 43 basis points to 3.54% • Loans increased $501.3 million, which represents 18.8% annualized net loan growth • Cost of deposits increased 6 basis points on a linked quarter basis to 0.2
Slide 7: Financial Condition
[NRENASANT CORPORATION Financial Condition
Slide 8: Balance Sheet Growth
$2,044 $2,126 $2,133 $2,210 $2,092 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 2018 2019 2020 2021 Q3 2022 $10,129 $10,213 $12,060 $13,906 $13,432 $0 $2,000 $4,000 $6,000 $8,000 $10 ,000 $12 ,000 $14 ,000 $16 ,000 2018 2019 2020 2021 Q3 2022 $9,083 $9,690 $10,933 $9,804 $10,021 $11,105 $1,129 0
Slide 9: Tangible Book Value Per Share
Tangible Book Value Per Share* 9 *Tangible Book Value Per Share is a non-GAAP financial measure. See slide 42 in the appendix for a description of the exclusions and a reconciliation of this non-GAAP financial measure to GAAP. $11.51 $13.13 $13.95 $16.65 $17.83 $18.21 $20.20 $20.69 $22.35 $20.12 201
Slide 10: Loans and Yields
Loans and Yields 10Note: 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 39 in the appendix for a
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition 1-4 Family 22% HELOC 4% Consumer 1% Construction & Land Dev. 14% NOO CRE 30% OO CRE 14% C&I 13% Other 2% *Chart excludes PPP loans of $5.5 million At September 30, 2022, loans held for investment totaled $11.1 billion 11 • Legacy of proactive portfolio management and conse
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio 12 2No industry included in the 46% of C&I above exceeds 3% of the total loan portfolio Note: Chart excludes PPP loans of $5.5 million 1NOO CRE Construction loans have been restated to their respective permanent collateral type
Slide 13: ADC and CRE Loan Concentration Levels
ADC and CRE Loan Concentration Levels 13 ADC Loans as a Percentage of Bank Risk Based Capital CRE Loans (Const. & Perm) as a Percentage of Bank Risk Based Capital 73% 76% 79% 83% 87% 82% 88% 81% 85% 0% 20% 40% 60% 80% 100% 261% 259% 258% 259% 264% 251% 259% 258% 272% 0% 50% 100% 150% 200% 250% 300%
Slide 14: Deposit Mix and Pricing
Deposit Mix and Pricing 14 Note: Dollars in millions $13,255 $13,906 $13,991 $13,764 $13,432 0.21% 0.18% 0.17% 0.15% 0.21% 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Noninterest-bearing Interest-bearing Savings Time Cost of deposits
Slide 15: Core Deposit Funding
Core Deposit Funding 36% 47% 8% 7% 2% Noninterest-bearing Interest-bearing** Savings Time < $250,000 Time > $250,000 • 98% of total deposits are considered core deposits* • Commercial and consumer deposit accounts, excluding time deposit accounts, average approximately $95 thousand and $15 thousand,
Slide 16: Liquidity
Liquidity 16 Note: Dollars in millions 76% 73% 74% 76% 79% 91% $1 $1 $1 $1 $1 $1 $1 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 2018 -2019 Average Loans to Average Deposits Average Loans to Average Deposits 24.89% 27.84% 26.68% 24.24% 20.66% $0 $0 $0 $0 $0 $0 $0 $0 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 202
Slide 17: Capital Position
Subordinated Notes $335,657 ACL $143,562 Trust Preferred $108,216 Common Equity Tier 1 $1,385,770 1 Capital Position 17 Tier 1 $1,494 Tier 2 $479 Regulatory Capital as of September 30, 2022 • $100 million stock repurchase program is in effect through October 2023; there was no buyback activity in th
Slide 18: Dividend History
Dividend History 18 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00
Slide 19: Asset Quality
Asset Quality
Slide 20: Asset Quality: Criticized and Past Due Loans
2.38% 2.00% 2.50% 3.00% 3.50% 4.00% $200,000 $250,000 $300,000 $350,000 $400,000 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Criticized Loans/Total Loans* Criticized Loans % of Total Loans, excl. PPP ($ in thousands) 0.24% 0.00% 0.50% 1.00% 1.50% 2.00% $- $25,000 $50,000 $75,000 $100,000 3Q 2021 4Q 2021
Slide 21: Asset Quality: NPAs and Net Charge-offs
0.35% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 NPAs/Total Assets* Nonperforming loans OREO % of Assets, excl. PPP ($ in thousands) 0.06% 0.00% 0.20% 0.40% 0.60% 0.80% $- $5,000 $10,000 $15,000 $20,000 3Q 2
Slide 22: ACL Metrics
1.57% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% $140,000 $150,000 $160,000 $170,000 $180,000 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Allowance/Total Loans* Allowance % of Total Loans, excl. PPP ($ in thousands) 312% 200% 250% 300% 350% 400% $140,000 $150,000 $160,000 $170,000 $180,000 3Q 2021 4Q 2021 1Q 2
Slide 23: ACL Summary
ACL Summary ($ in thousands) ACL ACL as a % of Loans ACL ACL as a % of Loans SBA Paycheck Protection Program - - - - Commercial, Financial, Agricultural 30,192$ 2.02 30,594$ 2.02 Lease Financing Receivables 1,802 1.78 2,314 2.24 Real Estate - 1-4 Family Mortgage 41,910 1.38 43,414 1.39 Real Estate -
Slide 24: Loss Absorption Capacity
Loss Absorption Capacity 24 ($ in thousands) 9/30/2022 Allowance for Credit Losses on Loans 174,356$ Reserve for Unfunded Commitments 19,935 Purchase Accounting Discounts 10,735 Total Loss Absorption Capacity 205,026$
Slide 25: Profitability
Profitability
Slide 26: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 26 $40.1 $37.1 $33.5 $39.7 $46.6 $50.2 $49.2 $42.7 $54.2 $67.0 1.23% 1.19% 1.04% 1.31% 1.60% 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Net Income P Adj. PPNR (non-GAAP)* Adj. PPNR /Avg. Assets (non-GAAP)* Note: Dollars in millions *Adjusted Pre-Provisio
Slide 27: Diluted Earnings per Share Reported and Adjusted
Diluted Earnings per Share Reported and Adjusted* 27 $.71 $.66 $.60 $.71 $.83 $.71 $.68 $.60 $.72 $.79 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Diluted EPS (GAAP) Diluted EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non
Slide 28: Profitability Ratios
Profitability Ratios 28 7.16% 6.59% 6.05% 7.31% 8.50% 13.13% 12.31% 10.99% 13.81% 14.87% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 ROE (GAAP) ROTCE (Adjusted) (non-GAAP)* * ROAA (Adjusted) and ROTCE (Adjusted) are non-GAAP financial measures. S
Slide 29: Net Interest Income (FTE) & Net Interest Margin
Net Interest Income (FTE) & Net Interest Margin 29 $105.0 $103.3 $101.4 $115.3 $132.4 2.93% 2.81% 2.76% 3.11% 3.54% 2.76% 2.73% 2.71% 3.00% 3.50% 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Interest Incom
Slide 30: Noninterest Income
Note: Dollars in thousands $50,755 $47,582 $37,458 $37,214 $41,186 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Service Charges Fees and Commissions Insurance Wealth Management Mortgage Banking Securities Gains Other Noninterest Income 30 Service Charges 25% Fees and Commissions 10% Insurance 8%Wealth Ma
Slide 31: Mortgage Banking
Mortgage Banking 31 Mortgage MixMortgage banking income Gain on sale margin* *Gain on sale margin excludes pipeline fair value adjustments and buyback reserve activity included in “Gain on sales of loans, net” in the table above. ($ in thousands) 3Q21 2Q22 3Q22 Gain on sales of loans, net 20,116$ 3,
Slide 32: Noninterest Expense and Efficiency Ratio
Noninterest Expense and Efficiency Ratio 32 Salaries and employee benefits 65% Data processing 4% Net occupancy and equipment 11% Intangible amortization 1% Other 19% Q3 2022 – Noninterest Expense Mix ($ in thousands) 2Q22 3Q22 Change Salaries and employee benefits 65,580$ 66,463$ 883$ Data processi
Slide 33: Appendix
Appendix
Slide 34: Reconciliation: Adjusted Pre-Provision Net Revenue
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue 34(1) Primarily consists of employee overtime and employee benefit accruals directly related to the response to the COVID-19 pandemic and federal legislation enacted to address the pandemic, such as the CARES Act, and expenses
Slide 35: Reconciliation: Adjusted PPNR/Average Assets
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets 35 (1) See footnote 1 on slide 34 for an explanation of the types of expenses included in the COVID-19 related expenses line item. (2) Tax effect is calculated based on the respective periods’ effective tax rate
Slide 36: Reconciliation: Adjusted Diluted EPS
Reconciliation of Non-GAAP Disclosures 36 Adjusted Diluted Earnings Per Share (1) See footnote 1 on slide 34 for an explanation of the types of expenses included in the COVID-19 related expenses line item. (2) Tax effect is calculated based on the respective periods’ effective tax rate excluding the
Slide 37: Reconciliation: Return on Average Tangible Common Equity
Reconciliation of Non-GAAP Disclosures 37 Return on Average Tangible Common Equity (Adjusted) (1) See footnote 1 on slide 34 for an explanation of the types of expenses included in the COVID-19 related expenses line item. (2) Tax effect is calculated based on the respective periods’ effective tax ra
Slide 38: Reconciliation: Core Net Interest Income and Margin
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin 38 $ in thousands 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Net interest income (FTE) (GAAP) 105,002$ 103,249$ 101,383$ 115,321$ 132,435$ Less: Net interest income collected on problem loans 316 578 434
Slide 39: Reconciliation: Core Loan Yield
Reconciliation of Non-GAAP Disclosures Core Loan Yield 39 $ in thousands 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Loan interest income (FTE) (GAAP) 103,769$ 99,670$ 97,001$ 107,612$ 124,614$ Less: Net interest income collected on problem loans 316 578 434 2,276 78 Accretable yield recognized on purch
Slide 40: Reconciliation: Adjusted Efficiency Ratio
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio 40(1) See footnote 1 on slide 34 for an explanation of the types of expenses included in the COVID-19 related expenses line item. $ in thousands 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Net interest income (FTE) (GAAP) 105,002$ 103,249$
Slide 41: Reconciliation: Tangible Common Equity
Reconciliation of Non-GAAP Disclosures Tangible Common Equity 41 $ in thousands 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Actual shareholders' equity (GAAP) 2,203,944$ 2,209,853$ 2,137,642$ 2,116,877$ 2,092,281$ Intangibles 965,205 963,781 969,022 967,713 966,461 Actual tangible shareholders' equity (
Slide 42: Reconciliation: Tangible Book Value
Reconciliation of Non-GAAP Disclosures Tangible Book Value 42 $ in thousands (except share data) 2013 2014 2015 2016 2017 Actual shareholders' equity (GAAP) 665,652$ 711,651$ 1,036,818$ 1,232,883$ 1,514,983$ Intangibles 304,330 297,330 474,682 494,608 635,556 Actual tangible shareholders' equity (no
Slide 43: Reconciliation: Asset Quality Ratios excluding PPP Loans
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans 43 $ in thousands 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Total loans (GAAP) 10,016,824$ 10,020,914$ 10,313,459$ 10,603,744$ 11,105,004$ Less: PPP loans 67,462 58,391 8,382 7,383 5,476 Adjusted total loans (non-GAAP) 9,9
Slide 44: Reconciliation: Asset Quality Ratios excluding PPP Loans, continued
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued 44 $ in thousands Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Total average loans (GAAP) 10,017,742$ 9,948,610$ 10,108,511$ 10,477,036$ 10,829,137$ Less: Average PPP loans 126,870 62,726 39,506 7,863 6,647 Adjuste
Slide 45: Investor Inquiries
Investor Inquiries 45 C. Mitchell Waycaster President and Chief Executive Officer Kevin D. Chapman Senior Executive Vice President, Chief Operating Officer James C. Mabry IV Senior Executive Vice President, Chief Financial Officer