Renasant Corporation · NYSE:RNST
Renasant — Q1 2021 Earnings Presentation
37 slides from Renasant's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Earnings Call
First 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 March 31, 2021 (1) Total revenue is calculated as net interest income plus noninterest income. Company Snapshot Loans and Deposits by State Assets: $15.6 billion Loans: 10.7 Deposits: 12.7 Equity: 2.2 3 MS 24% AL 20% FL 5% GA 33% TN 18% Loans MS 38% 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: First Quarter Highlights
First Quarter Highlights 5 • Net income of $57.91 million and diluted EPS of $1.02 • Mortgage banking income was $50.73 million, inclusive of a $13.56 million MSR valuation adjustment • Allowance for credit losses to total loans, excluding Paycheck Protection Program (“PPP”) loans, decreased to 1.76
Slide 6: Financial Condition
[NRENASANT CORPORATION Financial Condition
Slide 7: Total Assets
Total Assets 7 Note: Dollars in millions $13,901 $14,897 $14,809 $14,930 $15,623 $10 ,000 $11 ,000 $12 ,000 $13 ,000 $14 ,000 $15 ,000 $16 ,000 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 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 $10,412 $11,846 $11,934 $12,059 $12,737 0.72% 0.49% 0.40% 0.33% 0.27% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Noninterest-bearing Interest-bearing Savings Time Cost of deposits
Slide 10: Liquidity
Liquidity 10 Note: Dollars in millions $638 $617 $414 $633 $1,262 $0 $20 0 $40 0 $60 0 $80 0 $1,0 00 $1,2 00 $1,4 00 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Cash and Cash Equivalents $1,359 $1,303 $1,293 $1,343 $1,536 $1,0 00 $1,1 00 $1,2 00 $1,3 00 $1,4 00 $1,5 00 $1,6 00 Q1 2020 Q2 2020 Q3 2020 Q4
Slide 11: Capital Position
Capital Position 11 Tier 1 $1,353 Tier 2 $348 Regulatory Capital as of March 31, 2021 • $50 million stock repurchase program in effect until October 2021. • Consistent dividend payment history; including through the 2008 financial crisis and the pandemic. • Callable subordinated debt in 2021: • July
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 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Minimum to be Well Capitalized Tangibl
Slide 13: Asset Quality
[NRENASANT CORPORATION Asset Quality
Slide 14: Asset Quality
2.33% 0.00% 1.00% 2.00% 3.00% 4.00% $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Classified Loans/Total Loans(1) Classified Loans % of Total Loans, excl. PPP ($ in thousands) 0.22% 0.00% 0.50% 1.00% 1.50% 2.00% $- $25,000 $50,000 $75,000 $100,000 1Q
Slide 15: Asset Quality
0.42% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 NPAs/Total Assets(1) Nonperforming loans OREO % of Assets ($ in thousands) 0.13% 0.00% 0.10% 0.20% 0.30% 0.40% $- $5,000 $10,000 $15,000 $20,000 1Q 2020 2Q 20
Slide 16: Asset Quality
1.76% 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 $180,000 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Allowance/Total Loans Allowance % of Total Loans, excl. PPP ($ in thousands) 309% 0% 100% 200% 300% 400% 500% $- $20,000 $40,000 $60,000 $80,000
Slide 17: ACL Summary
ACL Summary ($ 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 37,592$ 2.71 Lease Financing Receivables 1,624 2.14 1,546 2.05 Real Estate - 1-4 Family Mortgage 32,165 1.19 31,694 1.18 Real Estate -
Slide 18: Profitability
[NRENASANT CORPORATION Profitability
Slide 19: Net Income & Adjusted Pre-Provision Net Revenue
Net Income & Adjusted Pre-Provision Net Revenue* 19 $2.0 $20.1 $30.0 $31.5 $57.9 $45.0 $65.6 $63.2 $57.4 $62.3 1.34% 1.79% 1.68% 1.53% 1.66% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2018 2019 Net Income PPNR (Non-GAAP) PPNR/Avg Assets (Non-GAAP)Adj. PPNR (non-GAAP) Adj. PPNR /Avg. Assets (non-GAAP) N
Slide 20: Diluted Earnings per Share and Adjusted
Diluted Earnings per Share and Diluted Earnings per Share Adjusted* 20 $.04 $.36 $.53 $.56 $1.02 $.20 $.52 $.53 $.68 $.85 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 EPS (GAAP) EPS Adjusted (non-GAAP)* * Diluted earnings per share (adjusted) is a non-GAAP financial
Slide 21: Profitability Ratios
Profitability Ratios 21 0.38% 3.85% 5.63% 5.88% 10.81% 4.41% 11.01% 10.81% 13.52% 16.68% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 ROE (GAAP) ROTCE (Adjusted) (non-GAAP)* * ROAA (Adjusted) and ROTCE (Adjusted) are non-GAAP financial meas
Slide 22: Core Net Interest Income & Core Net Interest Margin
Core Net Interest Income (FTE) & Core Net Interest Margin* 22 $108.3 $107.5 $107.9 $110.0 $111.3 3.75% 3.38% 3.29% 3.35% 3.37% 3.56% 3.26% 3.23% 3.22% 3.12% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Core NII (FTE)(Non-GAAP)* Non-Core NII NIM Core NIM (Non-GAAP)* Note: Dollars in millions *Core Net Int
Slide 23: Noninterest Income and Mortgage Banking
Note: Dollars in thousands $37,570 $64,170 $70,928 $62,864 $81,037 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Service Charges Fees and Commissions Insurance Wealth Management Mortgage Banking Securities Gains Other Noninterest Income 23 ($ in thousands) 1Q20 4Q20 1Q21 Gain on sales of loans, net 21,782
Slide 24: Efficiency Ratio
79% 69% 65% 71% 60% 69% 61% 63% 64% 64% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Efficiency Ratio (GAAP) Adjusted Efficiency Ratio (non-GAAP)* Efficiency Ratio 24 Note: Dollars in millions *Adjusted Efficiency Ratio is a non-GAAP financial measure. See slide 33 in the appendix for a description of ex
Slide 25: Appendix
[NRENASANT CORPORATION Appendix
Slide 26: COVID-19 Credit Impact Update
COVID-19 Credit Impact Update • As of March 31, 2021, loans on deferral decreased to 0.96% of total loans, excluding PPP loans Loan Portfolio Portfolio Amount ($ in millions) Percentage of Total Loan Portfolio(1) Percentage of Portfolio Deferred(1) Percentage of Portfolio in Special Mention Percenta
Slide 27: Reconciliation: Adjusted Pre-Provision Net Revenue
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue 27 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net income (GAAP) 2,008$ 20,130$ 29,992$ 31,521$ 57,908$ Income taxes 773 4,637 7,612 6,818 16,842 Provision for credit losses (including unfunded commitments) 29,750 2
Slide 28: Reconciliation: Adjusted PPNR/Average Assets
Reconciliation of Non-GAAP Disclosures Adjusted Pre-Provision Net Revenue/Average Assets 28 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net income (GAAP) 2,008$ 20,130$ 29,992$ 31,521$ 57,908$ Debt prepayment penalties - 90 28 3 - MSR valuation adjustment 9,571 4,951 (828) (1,968) (13,561
Slide 29: Reconciliation: Diluted Earnings Per Share
Reconciliation of Non-GAAP Disclosures 29 Diluted Earnings Per Share $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net income (GAAP) 2,008$ 20,130$ 29,992$ 31,521$ 57,908$ Debt prepayment penalties - 90 28 3 - MSR valuation adjustment 9,571 4,951 (828) (1,968) (13,561) Restructuring charges
Slide 30: Reconciliation: Return on Average Tangible Common Equity
Reconciliation of Non-GAAP Disclosures 30 Return on Average Tangible Common Equity (Adjusted) $ in thousands 1Q20 2Q20 3Q20 4Q20 1Q 2021 Net income (GAAP) 2,008$ 20,130$ 29,992$ 31,521$ 57,908$ Debt prepayment penalties - 90 28 3 - MSR valuation adjustment 9,571 4,951 (828) (1,968) (13,561) Restruct
Slide 31: Reconciliation: Core Net Interest Income and Margin
Reconciliation of Non-GAAP Disclosures Core Net Interest Income (FTE) and Core Net Interest Margin 31 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net interest income (FTE) (GAAP) 108,316$ 107,457$ 107,885$ 110,024$ 111,264$ Less: Net interest income collected on problem loans 218 384 282
Slide 32: Reconciliation: Core Loan Yield
Reconciliation of Non-GAAP Disclosures Core Loan Yield 32 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Loan interest income (FTE) (GAAP) 118,741$ 113,727$ 112,764$ 113,457$ 113,072$ Less: Net interest income collected on problem loans 218 384 282 128 2,180 Accretable yield recognized on pu
Slide 33: Reconciliation: Adjusted Efficiency Ratio
Reconciliation of Non-GAAP Disclosures Adjusted Efficiency Ratio 33 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Net interest income (FTE) (GAAP) 108,316$ 107,457$ 107,885$ 110,024$ 111,264$ Total noninterest income (GAAP) 37,570 64,170 70,928 62,864 81,037 Securities gains (losses) - 31 -
Slide 34: Reconciliation: Tangible Common Equity and Tangible Book Value
Reconciliation of Non-GAAP Disclosures Tangible Common Equity and Tangible Book Value 34 $ in thousands 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Actual shareholders' equity (GAAP) 2,070,512$ 2,082,946$ 2,104,300$ 2,132,578$ 2,173,701$ Intangibles 975,048 973,214 971,481 969,823 968,225 Actual tangibl
Slide 35: Reconciliation: Asset Quality Ratios excluding PPP Loans
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans 35 $ in thousands Q1 2020 Q2 2020 Q3 2020 Q4 2020 1Q 2021 Total loans (GAAP) 9,769,377$ 10,997,304$ 11,084,738$ 10,933,647$ 10,688,408$ Less: PPP loans - 1,281,278 1,307,972 1,128,703 860,864 Adjusted total loans (non-GA
Slide 36: Reconciliation: Asset Quality Ratios excluding PPP Loans, continued
Reconciliation of Non-GAAP Disclosures Asset Quality Ratios excluding PPP loans, continued 36 $ in thousands Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Total average loans (GAAP) 9,687,285$ 10,616,147$ 11,041,684$ 11,019,505$ 10,802,991$ Less: Average PPP loans - 866,078 1,305,229 1,252,990 985,561 Adj
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