• Renasant Corporation Announces Earnings for the Second Quarter of 2022

    Source: Nasdaq GlobeNewswire / 26 Jul 2022 15:30:01   America/Chicago

    TUPELO, Miss., July 26, 2022 (GLOBE NEWSWIRE) -- Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the second quarter of 2022. Net income for the second quarter of 2022 was $39.7 million, as compared to $40.9 million for the second quarter of 2021. Basic and diluted earnings per share (“EPS”) were $0.71 for the second quarter of 2022, as compared to basic and diluted EPS of $0.73 and $0.72, respectively, for the second quarter of 2021.

    "Our results for the second quarter reflect improved profitability on a linked quarter basis. Earnings benefited from expansion in the net interest margin, effective expense management, contributions from our wealth management and insurance lines of business and solid loan growth," remarked C. Mitchell Waycaster, Renasant President and Chief Executive Officer. "The balance sheet continues to reflect good liquidity, core funding, asset quality and capital levels."

    Quarterly Highlights

    Earnings

    • Net income for the second quarter of 2022 was $39.7 million with diluted EPS of $0.71
    • Net interest income (fully tax equivalent) for the second quarter of 2022 was $115.3 million, up $13.9 million on a linked quarter basis
    • For the second quarter of 2022, net interest margin was 3.11%, up 35 basis points on a linked quarter basis
    • Cost of total deposits was 15 basis points for the second quarter of 2022, down 2 basis points on a linked quarter basis
    • Our wealth management and insurance lines of business produced strong results during the second quarter of 2022
    • Our mortgage division generated $0.9 billion in interest rate lock volume during the second quarter of 2022, compared to $1.2 billion during the first quarter of 2022. Gain on sale margin was 1.27% for the second quarter of 2022, down 54 basis points on a linked quarter basis
    • Second quarter noninterest expense increased by $4.1 million on a linked quarter basis, primarily driven by an increase in salaries and benefits, as annual merit increases and an increase to our minimum wage took effect during the quarter, and a one-time restructuring charge of $1.2 million resulting from the early termination of a lease agreement

    Balance Sheet

    • Loans increased $290.3 million, or 11.3% annualized, during the second quarter of 2022 from the balance at March 31, 2022
    • The securities portfolio increased $124.6 million during the second quarter of 2022, comprised of net additions to the portfolio during the quarter of $201.0 million and a negative fair market value adjustment in our available-for-sale portfolio of $76.4 million
    • Deposits at June 30, 2022 decreased $227.0 million from March 31, 2022, primarily driven by a decrease in interest bearing deposits. Noninterest bearing deposits increased $35.1 million from March 31, 2022 and represented 34.45% of total deposits at June 30, 2022

    Capital

    • Book value per share and tangible book value per share (non-GAAP)(1) decreased 1.0% and 1.7%, respectively, on a linked quarter basis, driven by a decrease in accumulated other comprehensive income, which lowered tangible book value per share by $0.91
    • The Company has a $50 million stock repurchase program that will remain in effect through October 2022; there was no buyback activity during the second quarter of 2022

    Credit Quality

    • The Company recorded a provision for credit losses on loans of $2.0 million and a provision for unfunded commitments (recorded in other noninterest expense) of $450 thousand for the second quarter of 2022
    • The allowance for credit losses on loans to total loans decreased on a linked quarter basis to 1.57% at June 30, 2022 as compared to 1.61% at March 31, 2022
    • The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 373.21% at June 30, 2022, compared to 318.65% at March 31, 2022
    • Net loan charge-offs for the second quarter of 2022 were $2.3 million, or 0.09% of average loans on an annualized basis
    • Credit metrics remained relatively stable on a linked quarter basis. Nonperforming loans to total loans decreased to 0.42% at June 30, 2022 compared to 0.51% at March 31, 2022 and criticized loans (which include classified and special mention loans) to total loans increased to 2.57% at June 30, 2022, compared to 2.47% at March 31, 2022

    (1)A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.

    Income Statement

    (Dollars in thousands, except per share data)Three Months Ended Six Months Ended
     Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021 Jun 30, 2022Jun 30, 2021
    Interest income        
    Loans held for investment$106,409 $95,829 $98,478 $102,627 $109,721  $202,238 $221,727 
    Loans held for sale 2,586  2,863  3,652  2,377  3,604   5,449  6,603 
    Securities 12,471  10,835  9,221  8,416  7,321   23,306  13,895 
    Other 1,954  664  568  593  345   2,618  528 
    Total interest income 123,420  110,191  111,919  114,013  120,991   233,611  242,753 
    Interest expense        
    Deposits 5,018  5,637  6,056  6,972  7,669   10,655  15,948 
    Borrowings 4,887  4,925  4,381  3,749  3,743   9,812  7,578 
    Total interest expense 9,905  10,562  10,437  10,721  11,412   20,467  23,526 
    Net interest income 113,515  99,629  101,482  103,292  109,579   213,144  219,227 
    Provision for (recovery of) credit losses        
    Provision for (recovery of) loan losses 2,000  1,500  (500) (1,200) —   3,500  — 
    Provision for credit losses on HTM securities —  —  32  —  —   —  — 
    Total provision for (recovery of) credit losses 2,000  1,500  (468) (1,200) —   3,500  — 
    Net interest income after provision for (recovery of) credit losses 111,515  98,129  101,950  104,492  109,579   209,644  219,227 
    Noninterest income 37,214  37,458  47,582  50,755  47,610   74,672  128,647 
    Noninterest expense 98,194  94,105  101,115  103,999  108,777   192,299  224,712 
    Income before income taxes 50,535  41,482  48,417  51,248  48,412   92,017  123,162 
    Income taxes 10,857  7,935  11,363  11,185  7,545   18,792  24,387 
    Net income$39,678 $33,547 $37,054 $40,063 $40,867  $73,225 $98,775 
             
    Adjusted net income (non-GAAP)(1)$40,601 $33,728 $38,232 $40,315 $41,169  $74,329 $89,363 
    Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1)$54,172 $42,664 $49,190 $50,171 $48,797  $96,836 $111,063 
             
    Basic earnings per share$0.71 $0.60 $0.66 $0.71 $0.73  $1.31 $1.75 
    Diluted earnings per share 0.71  0.60  0.66  0.71  0.72   1.30  1.75 
    Adjusted diluted earnings per share (non-GAAP)(1) 0.72  0.60  0.68  0.71  0.73   1.32  1.58 
    Average basic shares outstanding 55,906,755  55,809,192  55,751,487  56,146,285  56,325,717   55,858,243  56,283,195 
    Average diluted shares outstanding 56,182,845  56,081,863  56,105,050  56,447,184  56,635,898   56,130,762  56,578,580 
    Cash dividends per common share$0.22 $0.22 $0.22 $0.22 $0.22  $0.44 $0.44 

    (1)A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.

    Performance Ratios

     Three Months Ended Six Months Ended
     Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021 Jun 30, 2022Jun 30, 2021
    Return on average assets0.96%0.81%0.89%0.99%1.04% 0.89%1.28%
    Adjusted return on average assets (non-GAAP)(1)0.98 0.82 0.92 0.99 1.04  0.90 1.16 
    Return on average tangible assets (non-GAAP)(1)1.04 0.89 0.98 1.08 1.14  0.97 1.40 
    Adjusted return on average tangible assets (non-GAAP)(1)1.07 0.90 1.01 1.09 1.14  0.98 1.27 
    Return on average equity7.31 6.05 6.59 7.16 7.40  6.67 9.08 
    Adjusted return on average equity (non-GAAP)(1)7.48 6.08 6.80 7.21 7.46  6.77 8.22 
    Return on average tangible equity (non-GAAP)(1)13.50 10.93 11.94 13.05 13.54  12.18 16.66 
    Adjusted return on average tangible equity (non-GAAP)(1)13.81 10.99 12.31 13.13 13.64  12.36 15.11 
    Efficiency ratio (fully taxable equivalent)64.37 67.78 67.04 66.77 68.49  66.00 64.00 
    Adjusted efficiency ratio (non-GAAP)(1)62.44 67.02 64.18 66.06 67.28  64.63 65.47 
    Dividend payout ratio30.99 36.67 33.33 30.99 30.14  33.59 25.14 

    Capital and Balance Sheet Ratios

     As of
     Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
    Shares outstanding 55,932,017  55,880,666  55,756,233  55,747,407  56,350,878 
    Market value per share$28.81 $33.45 $37.95 $36.05 $40.00 
    Book value per share 37.85  38.25  39.63  39.53  39.11 
    Tangible book value per share (non-GAAP)(1) 20.55  20.91  22.35  22.22  21.95 
    Shareholders' equity to assets 12.74% 12.68% 13.15% 13.64% 13.75%
    Tangible common equity ratio (non-GAAP)(1) 7.34  7.35  7.86  8.15  8.22 
    Leverage ratio 9.16  9.00  9.15  9.18  9.30 
    Common equity tier 1 capital ratio 10.74  10.78  11.18  11.02  11.14 
    Tier 1 risk-based capital ratio 11.60  11.67  12.10  11.94  12.07 
    Total risk-based capital ratio 15.34  15.51  16.14  14.66  15.11 

    (1)A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.

    Noninterest Income and Noninterest Expense

    (Dollars in thousands)Three Months Ended Six Months Ended
     Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021 Jun 30, 2022Jun 30, 2021
    Noninterest income        
    Service charges on deposit accounts$9,734 $9,562 $9,751 $9,337 $9,458  $19,296 $17,481 
    Fees and commissions 4,668  3,982  3,885  3,837  4,110   8,650  8,010 
    Insurance commissions 2,591  2,554  2,353  2,829  2,422   5,145  4,659 
    Wealth management revenue 5,711  5,924  5,273  5,371  5,019   11,635  9,811 
    Mortgage banking income 8,316  9,633  14,726  23,292  20,853   17,949  71,586 
    Swap termination gains —  —  4,676  —  —   —  — 
    Net gains on sales of securities —  —  49  764  —   —  1,357 
    BOLI income 2,331  2,153  2,048  1,602  1,644   4,484  3,716 
    Other 3,863  3,650  4,821  3,723  4,104   7,513  12,027 
    Total noninterest income$37,214 $37,458 $47,582 $50,755 $47,610  $74,672 $128,647 
    Noninterest expense        
    Salaries and employee benefits$65,580 $62,239 $62,523 $69,115 $70,293  $127,819 $148,989 
    Data processing 3,590  4,263  5,346  5,277  5,652   7,853  11,103 
    Net occupancy and equipment 11,155  11,276  11,177  11,748  11,374   22,431  23,912 
    Other real estate owned (187) (241) (60) 168  104   (428) 145 
    Professional fees 2,778  3,151  3,209  2,972  2,674   5,929  5,595 
    Advertising and public relations 3,406  4,059  2,929  2,922  3,100   7,465  6,352 
    Intangible amortization 1,310  1,366  1,424  1,481  1,539   2,676  3,137 
    Communications 1,904  2,027  2,088  2,198  2,291   3,931  4,583 
    Merger and conversion related expenses —  687  —  —  —   687  — 
    Restructuring charges (benefit) 1,187  (455) 61  —  15   732  307 
    Debt prepayment penalty —  —  6,123  —  —   —  — 
    Other 7,471  5,733  6,295  8,118  11,735   13,204  20,589 
    Total noninterest expense$98,194 $94,105 $101,115 $103,999 $108,777  $192,299 $224,712 

    Mortgage Banking Income

    (Dollars in thousands)Three Months Ended Six Months Ended
     Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021 Jun 30, 2022Jun 30, 2021
    Gain on sales of loans, net$3,490 $6,047 $10,801 $20,116 $17,581  $9,537 $51,482 
    Fees, net 3,064  3,053  4,320  3,420  4,519   6,117  9,421 
    Mortgage servicing income (loss), net 1,762  533  (395) (244) (1,247)  2,295  (2,878)
    MSR valuation adjustment —  —  —  —  —   —  13,561 
    Total mortgage banking income$8,316 $9,633 $14,726 $23,292 $20,853  $17,949 $71,586 

    Balance Sheet

    (Dollars in thousands)As of
     Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
    Assets     
    Cash and cash equivalents$1,010,468 $1,607,493 $1,877,965 $1,476,141 $1,605,488 
    Securities held to maturity, at amortized cost 488,851  487,194  416,357  —  — 
    Securities available for sale, at fair value 2,528,253  2,405,316  2,386,052  2,544,643  2,163,820 
    Loans held for sale, at fair value 196,598  280,464  453,533  452,869  448,959 
    Loans:     
    Non purchased 9,692,116  9,338,890  9,011,011  8,875,880  8,892,544 
    Purchased 911,628  974,569  1,009,903  1,140,944  1,256,698 
    Total loans 10,603,744  10,313,459  10,020,914  10,016,824  10,149,242 
    Allowance for credit losses on loans (166,131) (166,468) (164,171) (170,038) (172,354)
    Loans, net 10,437,613  10,146,991  9,856,743  9,846,786  9,976,888 
    Premises and equipment, net 284,035  285,344  293,122  294,499  293,203 
    Other real estate owned 2,807  2,062  2,540  4,705  4,939 
    Goodwill 946,291  946,291  939,683  939,683  939,683 
    Other intangibles 21,422  22,731  24,098  25,522  27,003 
    Bank-owned life insurance 371,298  369,344  287,359  286,088  279,444 
    Mortgage servicing rights 94,743  91,730  89,018  86,387  84,912 
    Other assets 235,722  218,797  183,841  198,227  198,047 
    Total assets$16,618,101 $16,863,757 $16,810,311 $16,155,550 $16,022,386 
          
    Liabilities and Shareholders’ Equity     
    Liabilities     
    Deposits:     
    Noninterest-bearing$4,741,397 $4,706,256 $4,718,124 $4,492,650 $4,349,135 
    Interest-bearing 9,022,532  9,284,641  9,187,600  8,762,179  8,766,216 
    Total deposits 13,763,929  13,990,897  13,905,724  13,254,829  13,115,351 
    Short-term borrowings 112,642  111,279  13,947  11,253  14,933 
    Long-term debt 431,553  435,416  471,209  468,863  469,406 
    Other liabilities 193,100  188,523  209,578  216,661  218,889 
    Total liabilities 14,501,224  14,726,115  14,600,458  13,951,606  13,818,579 
          
    Shareholders’ equity:     
    Preferred stock —  —  —  —  — 
    Common stock$296,483 $296,483 $296,483 $296,483 $296,483 
    Treasury stock (112,295) (114,050) (118,027) (118,288) (97,249)
    Additional paid-in capital 1,298,207  1,297,088  1,300,192  1,298,022  1,295,879 
    Retained earnings 789,880  762,690  741,648  717,033  689,444 
    Accumulated other comprehensive (loss) income (155,398) (104,569) (10,443) 10,694  19,250 
    Total shareholders’ equity 2,116,877  2,137,642  2,209,853  2,203,944  2,203,807 
    Total liabilities and shareholders’ equity$16,618,101 $16,863,757 $16,810,311 $16,155,550 $16,022,386 

    Net Interest Income and Net Interest Margin

    (Dollars in thousands)Three Months Ended
     June 30, 2022March 31, 2022June 30, 2021
     Average
    Balance    		Interest
    Income/
    Expense    		Yield/
    Rate    		Average
    Balance    		Interest
    Income/
    Expense    		Yield/
    Rate    		Average
    Balance    		Interest
    Income/
    Expense    		Yield/
    Rate
    Interest-earning assets:         
    Non purchased loans$9,524,654 $93,302 3.93%$9,085,482 $84,653 3.77%$8,521,028 $82,774 3.90%
    Purchased loans 944,519  14,236 6.04% 983,523  11,729 4.82% 1,328,631  17,891 5.40%
    PPP loans 7,863  74 3.76% 39,506  619 6.36% 628,462  10,120 6.46%
    Total loans 10,477,036  107,612 4.12% 10,108,511  97,001 3.88% 10,478,121  110,785 4.24%
    Loans held for sale 227,435  2,586 4.55% 330,442  2,863 3.48% 461,752  3,604 3.12%
    Taxable securities 2,684,624  10,355 1.54% 2,499,822  8,782 1.41% 1,503,605  5,549 1.48%
    Tax-exempt securities(1) 451,878  2,719 2.41% 438,380  2,635 2.40% 317,824  2,333 2.94%
    Total securities 3,136,502  13,074 1.67% 2,938,202  11,417 1.55% 1,821,429  7,882 1.73%
    Interest-bearing balances with banks 1,004,226  1,954 0.78% 1,463,991  664 0.18% 1,227,962  346 0.11%
    Total interest-earning assets 14,845,199  125,226 3.38% 14,841,146  111,945 3.05% 13,989,264  122,617 3.51%
    Cash and due from banks 206,882    206,224    195,982   
    Intangible assets 968,441    965,430    967,430   
    Other assets 610,768    684,464    678,342   
    Total assets$16,631,290   $16,697,264   $15,831,018   
    Interest-bearing liabilities:         
    Interest-bearing demand(2)$6,571,905 $3,598 0.22%$6,636,392 $3,647 0.22%$6,109,956 $4,069 0.27%
    Savings deposits 1,137,607  147 0.05% 1,097,560  139 0.05% 969,982  185 0.08%
    Time deposits 1,303,735  1,273 0.39% 1,374,722  1,851 0.55% 1,564,448  3,415 0.88%
    Total interest-bearing deposits 9,013,247  5,018 0.22% 9,108,674  5,637 0.25% 8,644,386  7,669 0.36%
    Borrowed funds 543,728  4,887 3.60% 485,777  4,925 4.08% 483,081  3,743 3.11%
    Total interest-bearing liabilities 9,556,975  9,905 0.42% 9,594,451  10,562 0.44% 9,127,467  11,412 0.50%
    Noninterest-bearing deposits 4,714,161    4,651,793    4,271,464   
    Other liabilities 182,617    201,353    218,344   
    Shareholders’ equity 2,177,537    2,249,667    2,213,743   
    Total liabilities and shareholders’ equity$16,631,290   $16,697,264   $15,831,018   
    Net interest income/ net interest margin $115,321 3.11% $101,383 2.76% $111,205 3.19%
    Cost of funding  0.28%  0.30%  0.34%
    Cost of total deposits  0.15%  0.17%  0.24%

    (1) U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.
    (2) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

    Net Interest Income and Net Interest Margin, continued

    (Dollars in thousands)Six Months Ended
     June 30, 2022June 30, 2021
     Average
    Balance    		Interest
    Income/
    Expense    		Yield/
    Rate    		Average
    Balance    		Interest
    Income/
    Expense    		Yield/
    Rate
    Interest-earning assets:      
    Non purchased loans$9,306,356 $177,955 3.85%$8,441,910 $164,702 3.93%
    Purchased loans 964,001  25,965 5.42% 1,391,634  38,347 5.55%
    PPP loans 23,592  693 5.92% 807,012  20,807 5.20%
    Total loans 10,293,949  204,613 4.00% 10,640,556  223,856 4.24%
    Loans held for sale 278,722  5,449 3.91% 434,075  6,604 3.05%
    Taxable securities(1) 2,592,645  19,137 1.48% 1,284,692  10,389 1.62%
    Tax-exempt securities 445,154  5,354 2.41% 312,084  4,617 2.96%
    Total securities 3,037,799  24,491 1.61% 1,596,776  15,006 1.88%
    Interest-bearing balances with banks 1,233,241  2,618 0.43% 1,002,564  529 0.11%
    Total interest-earning assets 14,843,711  237,171 3.21% 13,673,971  245,995 3.62%
    Cash and due from banks 206,559    200,906   
    Intangible assets 966,956    968,215   
    Other assets 647,254    674,262   
    Total assets$16,664,480   $15,517,354   
    Interest-bearing liabilities:      
    Interest-bearing demand(2)$6,603,986 $7,245 0.22%$6,008,093 $8,002 0.27%
    Savings deposits 1,117,724  286 0.05% 926,370  354 0.08%
    Time deposits 1,339,022  3,124 0.47% 1,610,113  7,593 0.95%
    Total interest-bearing deposits 9,060,732  10,655 0.24% 8,544,576  15,949 0.38%
    Borrowed funds 514,940  9,812 3.82% 483,494  7,577 3.16%
    Total interest-bearing liabilities 9,575,672  20,467 0.43% 9,028,070  23,526 0.53%
    Noninterest-bearing deposits 4,683,446    4,066,943   
    Other liabilities 191,938    229,257   
    Shareholders’ equity 2,213,424    2,193,084   
    Total liabilities and shareholders’ equity$16,664,480   $15,517,354   
    Net interest income/ net interest margin $216,704 2.94% $222,469 3.28%
    Cost of funding  0.29%  0.36%
    Cost of total deposits  0.16%  0.26%

    (1) U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.
    (2) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

    Supplemental Margin Information

    (Dollars in thousands)Three Months Ended Six Months Ended
     Jun 30, 2022Mar 31, 2022Jun 30, 2021 Jun 30, 2022Jun 30, 2021
    Earning asset mix:      
    Loans held for investment, excluding PPP loans 70.52% 67.84% 70.41%  69.19% 71.91%
    PPP loans 0.05  0.27  4.49   0.16  5.90 
    Loans held for sale 1.53  2.23  3.30   1.88  3.17 
    Securities 21.13  19.80  13.02   20.47  11.68 
    Interest-bearing balances with banks 6.77  9.86  8.78   8.30  7.34 
    Total 100.00% 100.00% 100.00%  100.00% 100.00%
           
    Funding sources mix:      
    Noninterest-bearing demand 33.03% 32.65% 31.88%  32.85% 31.06%
    Interest-bearing demand 46.05  46.59  45.60   46.31  45.88 
    Savings 7.97  7.70  7.24   7.84  7.07 
    Time deposits 9.14  9.65  11.68   9.39  12.30 
    Borrowed funds 3.81  3.41  3.60   3.61  3.69 
    Total 100.00% 100.00% 100.00%  100.00% 100.00%
           
    Net interest income collected on problem loans$2,276 $434 $1,339  $2,710 $3,519 
    Total accretion on purchased loans 2,021  1,235  2,638   3,256  5,726 
    Total impact on net interest income$4,297 $1,669 $3,977  $5,966 $9,245 
    Impact on net interest margin 0.11% 0.05% 0.11%  0.08% 0.14%
    Impact on loan yield 0.16% 0.07% 0.15%  0.12% 0.18%
           
    Interest income on PPP loans$74 $619 $10,120  $693 $20,807 
    PPP impact on net interest margin —% 0.01% 0.15%  —% 0.12%
    PPP impact on loan yield —% 0.01% 0.14%  —% 0.08%

    Loan Portfolio

    (Dollars in thousands)As of
     Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
    Loan Portfolio:     
    Commercial, financial, agricultural$1,489,889 $1,437,225 $1,364,879 $1,368,557 $1,387,702 
    Lease financing 101,350  89,842  76,125  79,215  74,003 
    Real estate - construction 1,126,363  1,222,052  1,104,896  1,091,296  1,051,359 
    Real estate - 1-4 family mortgages 3,030,083  2,840,979  2,724,246  2,724,743  2,702,091 
    Real estate - commercial mortgages 4,717,513  4,577,864  4,549,037  4,535,730  4,530,169 
    Installment loans to individuals 131,163  137,115  143,340  149,821  156,987 
    Subtotal 10,596,361  10,305,077  9,962,523  9,949,362  9,902,311 
    PPP 7,383  8,382  58,391  67,462  246,931 
    Total loans$10,603,744 $10,313,459 $10,020,914 $10,016,824 $10,149,242 

    Credit Quality and Allowance for Credit Losses on Loans

    (Dollars in thousands)As of
     Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
    Nonperforming Assets:     
    Non purchased     
    Non purchased nonaccruing loans$32,284 $32,573 $30,751 $29,266 $27,101 
    Non purchased loans 90 days or more past due 479  209  1,074  908  800 
    Total non purchased nonperforming loans 32,763  32,782  31,825  30,174  27,901 
    Non purchased other real estate owned 1,332  531  951  2,252  1,675 
    Total non purchased nonperforming assets 34,095  33,313  32,776  32,426  29,576 
    Purchased     
    Purchased nonaccruing loans$11,613 $19,422 $18,613 $26,492 $27,690 
    Purchased loans 90 days or more past due 138  38  367  74  945 
    Total purchased nonperforming loans 11,751  19,460  18,980  26,566  28,635 
    Purchased other real estate owned 1,475  1,531  1,589  2,453  3,264 
    Total purchased nonperforming assets$13,226 $20,991 $20,569 $29,019 $31,899 
    Total nonperforming loans$44,514 $52,242 $50,805 $56,740 $56,536 
    Total nonperforming assets$47,321 $54,304 $53,345 $61,445 $61,475 
    Allowance for credit losses on loans$166,131 $166,468 $164,171 $170,038 $172,354 
    Net loan charge-offs$2,337 $851 $5,367 $1,116 $752 
    Annualized net loan charge-offs / average loans 0.09% 0.03% 0.21% 0.04% 0.03%
    Nonperforming loans / total loans 0.42  0.51  0.51  0.57  0.56 
    Nonperforming assets / total assets 0.28  0.32  0.32  0.38  0.38 
    Allowance for credit losses on loans / total loans 1.57  1.61  1.64  1.70  1.70 
    Allowance for credit losses on loans / nonperforming loans 373.21  318.65  323.14  299.68  304.86 
    Nonperforming loans / total loans excluding PPP loans (non-GAAP)(1) 0.42  0.51  0.51  0.57  0.57 
    Nonperforming assets / total assets excluding PPP loans (non-GAAP)(1) 0.28  0.32  0.32  0.38  0.39 
    Allowance for credit losses on loans / total loans excluding PPP loans (non-GAAP)(1) 1.57  1.62  1.65  1.71  1.74 

    (1)A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.

    CONFERENCE CALL INFORMATION:
    A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time (9:00 AM Central Time) on Wednesday, July 27, 2022.

    The webcast can be accessed through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=ujFQbKbk. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2022 Second Quarter Earnings Conference Call and Webcast. International participants should dial 1-412-902-4145 to access the conference call.

    The webcast will be archived on www.renasant.com beginning one hour after the call and will remain accessible for one year. Replays can also be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 4305224 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 10, 2022.

    ABOUT RENASANT CORPORATION:

    Renasant Corporation is the parent of Renasant Bank, a 118-year-old financial services institution. Renasant has assets of approximately $16.6 billion and operates 195 banking, lending, mortgage, wealth management and insurance offices in Mississippi, Tennessee, Alabama, Florida, Georgia, North Carolina and South Carolina.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

    This press release may contain, or incorporate by reference, statements about Renasant Corporation 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 Exchange Act of 1934, as amended. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “projects,” “anticipates,” “intends,” “estimates,” “plans,” “potential,” “focus,” “possible,” “may increase,” “may fluctuate,” “will likely result,” and similar expressions, or future or conditional verbs such as “will,” “should,” “would” and “could,” are generally forward-looking in nature and not historical facts. Forward-looking statements include information about the Company’s future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. The Company’s management believes these forward-looking statements are reasonable, but they are all inherently subject to significant business, economic and competitive risks and uncertainties, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements, and such differences may be material. Prospective investors are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and, accordingly, investors should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

    Important factors currently known to management that could cause our actual results to differ materially from those in forward-looking statements include the following: (i) the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses, grow the acquired operations and realize the cost savings expected from an acquisition to the extent and in the timeframe anticipated by management; (ii) the effect of economic conditions and interest rates on a national, regional or international basis; (iii) timing and success of the implementation of changes in operations to achieve enhanced earnings or effect cost savings; (iv) competitive pressures in the consumer finance, commercial finance, insurance, financial services, asset management, retail banking, mortgage lending and auto lending industries; (v) the financial resources of, and products available from, competitors; (vi) changes in laws and regulations as well as changes in accounting standards; (vii) changes in policy by regulatory agencies; (viii) changes in the securities and foreign exchange markets; (ix) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (x) changes in the quality or composition of the Company’s loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers; (xi) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xii) general economic, market or business conditions, including the impact of inflation; (xiii) changes in demand for loan products and financial services; (xiv) concentration of credit exposure; (xv) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xvi) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xvii) civil unrest, natural disasters, epidemics (including the re-emergence of the COVID-19 pandemic) and other catastrophic events in the Company’s geographic area; (xviii) the impact, extent and timing of technological changes; and (xix) other circumstances, many of which are beyond management’s control.

    Management believes that the assumptions underlying the Company’s forward-looking statements are reasonable, but any of the assumptions could prove to be inaccurate. Investors are urged to carefully consider the risks described in the Company’s filings with the Securities and Exchange Commission (the “SEC”) from time to time, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.renasant.com and the SEC’s website at www.sec.gov.

    The Company undertakes no obligation, and specifically disclaims any obligation, to update or revise forward-looking statements, whether as a result of new information or to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by federal securities laws.

    NON-GAAP FINANCIAL MEASURES:

    In addition to results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this press release and the presentation slides furnished to the SEC on the same Form 8-K as this release contain non-GAAP financial measures, including, without limitation, (i) core loan yield, (ii) core net interest income and margin, (iii) adjusted pre-provision net revenue, (iv) adjusted net income, (v) adjusted diluted earnings per share, (vi) tangible book value per share, (vii) tangible common equity ratio, (viii) certain asset quality ratios (namely, loans 30-89 past due to total loans, criticized loans to total loans, nonperforming loans to total loans, nonperforming assets to total assets, net charge-offs to average loans and the allowance for credit losses to total loans) in each case excluding PPP loans, (ix) certain performance ratios (namely, the ratio of adjusted pre-provision net revenue to average assets, the return on average assets and on average equity, and the return on average tangible assets and on average tangible common equity (including each on an as-adjusted basis)), and (x) the adjusted efficiency ratio. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and/or certain charges (such as, among others, merger and conversion expenses, COVID-19 related expenses, debt prepayment penalties, swap termination gains, restructuring charges and asset valuation adjustments) with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof or, with respect to core loan yield and its asset quality measures, to exclude the Company’s PPP loans. With respect to COVID-19 related expenses in particular, management added these expenses as a charge to exclude when calculating non-GAAP financial measures because the expenses included within this line item are readily quantifiable and possess the same characteristics with respect to management’s inability to accurately predict the timing or amount thereof as the other charges excluded when calculating non-GAAP financial measures. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy; with respect to the core loan yield and certain asset quality measures, management excludes PPP loans, which bear an interest rate fixed by Small Business Administration (“SBA”) regulations and are both forgivable and guaranteed by the SBA, to more clearly measure loan yields affected by competitive factors and potential loss in the Company’s loan portfolio and the coverage therefor. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible, charges such as debt prepayment penalties, restructuring charges and COVID-19 related expenses, and the amount of PPP loans can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution’s regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company’s results to information provided in other regulatory reports and the results of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below under the caption “Non-GAAP Reconciliations”.

    None of the non-GAAP financial information that the Company has included in this release or the accompanying presentation slides are intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company’s calculations may not be comparable to similarly titled measures presented by other companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.

    Non-GAAP Reconciliations

    (Dollars in thousands, except per share data)Three Months Ended Six Months Ended
     Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021 Jun 30, 2022Jun 30, 2021
    Adjusted Pre-Provision Net Revenue (“PPNR”)      
    Net income (GAAP)$39,678 $33,547 $37,054 $40,063 $40,867  $73,225 $98,775 
    Income taxes 10,857  7,935  11,363  11,185  7,545   18,792  24,387 
    Provision for (recovery of) credit losses (including unfunded commitments) 2,450  950  (768) (1,400) —   3,400  — 
    Pre-provision net revenue (non-GAAP)$52,985 $42,432 $47,649 $49,848 $48,412  $95,417 $123,162 
    Merger and conversion expense —  687  —  —  —   687  — 
    Debt prepayment penalties —  —  6,123  —  —   —  — 
    Swap termination gains —  —  (4,676) —  —   —  — 
    MSR valuation adjustment —  —  —  —  —   —  (13,561)
    Restructuring charges (benefit) 1,187  (455) 61  —  15   732  307 
    COVID-19 related expenses(1) —  —  33  323  370   —  1,155 
    Adjusted pre-provision net revenue (non-GAAP)$54,172 $42,664 $49,190 $50,171 $48,797  $96,836 $111,063 
             
    Adjusted Net Income and Adjusted Tangible Net Income      
    Net income (GAAP)$39,678 $33,547 $37,054 $40,063 $40,867  $73,225 $98,775 
    Amortization of intangibles 1,310  1,366  1,424  1,481  1,539   2,676  3,137 
    Tax effect of adjustments noted above(2) (291) (303) (335) (323) (333)  (594) (697)
    Tangible net income (non-GAAP)$40,697 $34,610 $38,143 $41,221 $42,073  $75,307 $101,215 
             
    Net income (GAAP)$39,678 $33,547 $37,054 $40,063 $40,867  $73,225 $98,775 
    Merger and conversion expense —  687  —  —  —   687  — 
    Debt prepayment penalties —  —  6,123  —  —   —  — 
    Swap termination gain —  —  (4,676) —  —   —  — 
    MSR valuation adjustment —  —  —  —  —   —  (13,561)
    Restructuring charges (benefit) 1,187  (455) 61  —  15   732  307 
    COVID-19 related expenses(1) —  —  33  323  370   —  1,155 
    Tax effect of adjustments noted above(2) (264) (51) (363) (71) (83)  (315) 2,687 
    Adjusted net income (non-GAAP)$40,601 $33,728 $38,232 $40,315 $41,169  $74,329 $89,363 
    Amortization of intangibles 1,310  1,366  1,424  1,481  1,539   2,676  3,137 
    Tax effect of adjustments noted above(2) (291) (303) (335) (323) (333)  (594) (697)
    Adjusted tangible net income (non-GAAP)$41,620 $34,791 $39,321 $41,473 $42,375  $76,411 $91,803 
             
    Tangible Assets and Tangible Shareholders’ Equity      
    Average shareholders’ equity (GAAP)$2,177,537 $2,249,667 $2,231,681 $2,219,431 $2,213,743  $2,213,424 $2,193,084 
    Average intangible assets 968,441  965,430  964,575  965,960  967,430   966,956  968,215 
    Average tangible shareholders’ equity (non-GAAP)$1,209,096 $1,284,237 $1,267,106 $1,253,471 $1,246,313  $1,246,468 $1,224,869 
             
    Average assets (GAAP)$16,631,290 $16,697,264 $16,450,640 $16,130,149 $15,831,018  $16,664,480 $15,517,354 
    Average intangible assets 968,441  965,430  964,575  965,960  967,430   966,956  968,215 
    Average tangible assets (non-GAAP)$15,662,849 $15,731,834 $15,486,065 $15,164,189 $14,863,588  $15,697,524 $14,549,139 
             
    Shareholders’ equity (GAAP)$2,116,877 $2,137,642 $2,209,853 $2,203,944 $2,203,807  $2,116,877 $2,203,807 
    Intangible assets 967,713  969,022  963,781  965,205  966,686   967,713  966,686 
    Tangible shareholders’ equity (non-GAAP)$1,149,164 $1,168,620 $1,246,072 $1,238,739 $1,237,121  $1,149,164 $1,237,121 
             
    Total assets (GAAP)$16,618,101 $16,863,757 $16,810,311 $16,155,550 $16,022,386  $16,618,101 $16,022,386 
    Intangible assets 967,713  969,022  963,781  965,205  966,686   967,713  966,686 
    Total tangible assets (non-GAAP)$15,650,388 $15,894,735 $15,846,530 $15,190,345 $15,055,700  $15,650,388 $15,055,700 
             
    Adjusted Performance Ratios        
    Return on average assets (GAAP) 0.96% 0.81% 0.89% 0.99% 1.04%  0.89% 1.28%
    Adjusted return on average assets (non-GAAP) 0.98% 0.82% 0.92% 0.99% 1.04%  0.90% 1.16%
    Return on average tangible assets (non-GAAP) 1.04% 0.89% 0.98% 1.08% 1.14%  0.97% 1.40%
    Adjusted pre-provision net revenue to average assets (non-GAAP) 1.31% 1.04% 1.19% 1.23% 1.24%  1.17% 1.44%
    Adjusted return on average tangible assets (non-GAAP) 1.07% 0.90% 1.01% 1.09% 1.14%  0.98% 1.27%
    Return on average equity (GAAP) 7.31% 6.05% 6.59% 7.16% 7.40%  6.67% 9.08%
    Adjusted return on average equity (non-GAAP) 7.48% 6.08% 6.80% 7.21% 7.46%  6.77% 8.22%
    Return on average tangible equity (non-GAAP) 13.50% 10.93% 11.94% 13.05% 13.54%  12.18% 16.66%
    Adjusted return on average tangible equity (non-GAAP) 13.81% 10.99% 12.31% 13.13% 13.64%  12.36% 15.11%
             
    Adjusted Diluted Earnings Per Share      
    Average diluted shares outstanding 56,182,845  56,081,863  56,105,050  56,447,184  56,635,898   56,130,762  56,578,580 
             
    Diluted earnings per share (GAAP)$0.71 $0.60 $0.66 $0.71 $0.72  $1.30 $1.75 
    Adjusted diluted earnings per share (non-GAAP)$0.72 $0.60 $0.68 $0.71 $0.73  $1.32 $1.58 
             
    Tangible Book Value Per Share        
    Shares outstanding 55,932,017  55,880,666  55,756,233  55,747,407  56,350,878   55,932,017  56,350,878 
             
    Book value per share (GAAP)$37.85 $38.25 $39.63 $39.53 $39.11  $37.85 $39.11 
    Tangible book value per share (non-GAAP)$20.55 $20.91 $22.35 $22.22 $21.95  $20.55 $21.95 
             
    Tangible Common Equity Ratio        
    Shareholders' equity to assets (GAAP) 12.74% 12.68% 13.15% 13.64% 13.75%  12.74% 13.75%
    Tangible common equity ratio (non-GAAP) 7.34% 7.35% 7.86% 8.15% 8.22%  7.34% 8.22%
             
    Adjusted Efficiency Ratio        
    Net interest income (FTE) (GAAP) 115,321  101,383  103,249  105,002  111,205   216,704  222,469 
             
    Total noninterest income (GAAP) 37,214  37,458  47,582  50,755  47,610   74,672  128,647 
    MSR valuation adjustment —  —  —  —  —   —  13,561 
    Swap termination gains —  —  4,676  —  —   —  — 
    Securities gains —  —  49  764  —   —  1,357 
    Total adjusted noninterest income (non-GAAP) 37,214  37,458  42,857  49,991  47,610   74,672  113,729 
             
    Noninterest expense (GAAP) 98,194  94,105  101,115  103,999  108,777   192,299  224,712 
    Amortization of intangibles 1,310  1,366  1,424  1,481  1,539   2,676  3,137 
    Merger and conversion expense —  687  —  —  —   687  — 
    Debt prepayment penalty —  —  6,123  —  —   —  — 
    Restructuring charges (benefit) 1,187  (455) 61  —  15   732  307 
    Provision (recovery) of unfunded commitments 450  (550) (300) (200) —   (100) — 
    COVID-19 related expenses(1) —  —  33  323  370   —  1,155 
    Total adjusted noninterest expense (non-GAAP) 95,247  93,057  93,774  102,395  106,853   188,304  220,113 
             
    Efficiency ratio (GAAP) 64.37% 67.78% 67.04% 66.77% 68.49%  66.00% 64.00%
    Adjusted efficiency ratio (non-GAAP) 62.44% 67.02% 64.18% 66.06% 67.28%  64.63% 65.47%
             
    Core Net Interest Income and Core Net Interest Margin      
    Net interest income (FTE) (GAAP)$115,321 $101,383 $103,249 $105,002 $111,205  $216,704 $222,469 
    Net interest income collected on problem loans 2,276  434  577  316  1,339   2,710  3,519 
    Accretion recognized on purchased loans 2,021  1,235  2,187  2,871  2,638   3,256  5,726 
    Interest income recognized on PPP loans 74  619  485  3,503  10,120   693  20,807 
    Core net interest income (FTE) (non-GAAP)$110,950 $99,095 $99,999 $98,312 $97,108  $210,045 $192,417 
             
    Average earning assets (GAAP)$14,845,199 $14,841,146 $14,607,716 $14,256,421 $13,989,264  $14,843,711 $13,673,971 
    Average PPP loans 7,863  39,506  62,726  126,870  628,462   23,592  807,012 
    Average earning assets excluding PPP loans (non-GAAP)$14,837,336 $14,801,640 $14,544,990 $14,129,551 $13,360,802  $14,820,119 $12,866,959 
             
    Net interest margin (GAAP) 3.11% 2.76% 2.81% 2.93% 3.19%  2.94% 3.28%
    Core net interest margin (non-GAAP) 3.00% 2.71% 2.73% 2.76% 2.92%  2.86% 3.02%
             
    Core Loan Yield        
    Loan interest income (FTE) (GAAP)$107,612 $97,001 $99,670 $103,769 $110,785  $204,613 $223,856 
    Net interest income collected on problem loans 2,276  434  578  316  1,339   2,710  3,519 
    Accretion recognized on purchased loans 2,021  1,235  2,187  2,871  2,638   3,256  5,726 
    Interest income recognized on PPP loans 74  619  485  3,503  10,120   693  20,807 
    Core loan interest income (FTE) (non-GAAP)$103,241 $94,713 $96,420 $97,079 $96,688  $197,954 $193,804 
             
    Average loans (GAAP)$10,477,036 $10,108,511 $9,948,610 $10,017,742 $10,478,121  $10,293,949 $10,640,556 
    Average PPP loans 7,863  39,506  62,726  126,870  628,462   23,592  807,012 
    Average loans excluding PPP loans (non-GAAP)$10,469,173 $10,069,005 $9,885,884 $9,890,872 $9,849,659  $10,270,357 $9,833,544 
             
    Loan yield (GAAP) 4.12% 3.88% 3.98% 4.11% 4.24%  4.00% 4.24%
    Core loan yield (non-GAAP) 3.96% 3.82% 3.87% 3.89% 3.94%  3.89% 3.97%
             
    Adjusted Asset Quality Ratios        
    Total loans (GAAP)$10,603,744 $10,313,459 $10,020,914 $10,016,824 $10,149,242  $10,603,744 $10,149,242 
    PPP loans 7,383  8,382  58,391  67,462  246,931   7,383  246,931 
    Total loans excluding PPP loans (non-GAAP)$10,596,361 $10,305,077 $9,962,523 $9,949,362 $9,902,311  $10,596,361 $9,902,311 
             
    Loans 30-89 days past due$16,910 $30,617 $27,604 $14,806 $15,077  $16,910 $15,077 
    Loans 30-89 days past due / total loans (GAAP) 0.16% 0.30% 0.28% 0.15% 0.15%  0.16% 0.15%
    Loans 30-89 days past due / total loans excluding PPP loans (non-GAAP) 0.16% 0.30% 0.28% 0.15% 0.15%  0.16% 0.15%
             
    Classified loans$185,267 $178,015 $160,790 $187,223 $206,724  $185,267 $206,724 
    Special Mention loans 87,476  76,949  115,496  138,497  125,507   87,476  125,507 
    Criticized loans(3)$272,743 $254,964 $276,286 $325,720 $332,231  $272,743 $332,231 
    Criticized loans / total loans (GAAP) 2.57% 2.47% 2.76% 3.25% 3.27%  2.57% 3.27%
    Criticized loans / total loans excluding PPP loans (non-GAAP) 2.57% 2.47% 2.77% 3.27% 3.36%  2.57% 3.36%
             
    Nonperforming loans$44,514 $52,242 $50,805 $56,740 $56,536  $44,514 $56,536 
    Nonperforming loans / total loans (GAAP) 0.42% 0.51% 0.51% 0.57% 0.56%  0.42% 0.56%
    Nonperforming loans / total loans excluding PPP loans (non-GAAP) 0.42% 0.51% 0.51% 0.57% 0.57%  0.42% 0.57%
             
    Allowance for credit losses on loans$166,131 $166,468 $164,171 $170,038 $172,354  $166,131 $172,354 
    ACL / total loans (GAAP) 1.57% 1.61% 1.64% 1.70% 1.70%  1.57% 1.70%
    ACL / total loans excluding PPP loans (non-GAAP) 1.57% 1.62% 1.65% 1.71% 1.74%  1.57% 1.74%
             
             
    Average loans (GAAP)$10,477,036 $10,108,511 $9,948,610 $10,017,742 $10,478,121  $10,293,949 $10,640,556 
    Average PPP loans 7,863  39,506  62,726  126,870  628,462   23,592  807,012 
    Average loans excluding PPP loans (non-GAAP)$10,469,173 $10,069,005 $9,885,884 $9,890,872 $9,849,659  $10,270,357 $9,833,544 
             
    Net charge-offs$2,337 $851 $5,367 $1,116 $752  $3,188 $3,790 
    Annualized net charge-offs / average loans (GAAP) 0.09% 0.03% 0.21% 0.04% 0.03%  0.06% 0.07%
    Annualized net charge-offs / average loans excluding PPP loans (non-GAAP) 0.09% 0.03% 0.22% 0.04% 0.03%  0.06% 0.08%
             
    Total assets (GAAP)$16,618,101 $16,863,757 $16,810,311 $16,155,550 $16,022,386  $16,618,101 $16,022,386 
    PPP loans 7,383  8,382  58,391  67,462  246,931   7,383  246,931 
    Total assets excluding PPP loans (non-GAAP)$16,610,718 $16,855,375 $16,751,920 $16,088,088 $15,775,455  $16,610,718 $15,775,455 
             
    Nonperforming assets$47,321 $54,304 $53,345 $61,445 $61,475  $47,321 $61,475 
    Nonperforming assets / total assets (GAAP) 0.28% 0.32% 0.32% 0.38% 0.38%  0.28% 0.38%
    Nonperforming assets / total assets excluding PPP loans (non-GAAP) 0.28% 0.32% 0.32% 0.38% 0.39%  0.28% 0.39%

    (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 associated with supplying branches with protective equipment and sanitation supplies (such as floor markings and cautionary signage for branches, face coverings and hand sanitizer) as well as more frequent and rigorous branch cleaning.
    (2)Tax effect is calculated based on the respective periods’ effective tax rate excluding the impact of discrete items.
    (3)Criticized loans include loans in risk rating classifications of classified and special mention.

    Contacts:For Media: For Financials:
     John S. Oxford James C. Mabry IV
     Senior Vice President Executive Vice President
     Director of Marketing Chief Financial Officer
     (662) 680-1219 (662) 680-1281


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