• Renasant Corporation Announces Earnings for the Third Quarter of 2021

    Source: Nasdaq GlobeNewswire / 28 Oct 2021 15:15:02   America/Chicago

    TUPELO, Miss., Oct. 28, 2021 (GLOBE NEWSWIRE) -- Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the third quarter of 2021. Net income for the third quarter of 2021 was $40.1 million, as compared to $30.0 million for the third quarter of 2020. Basic and diluted earnings per share (“EPS”) were $0.71 for the third quarter of 2021, as compared to basic and diluted EPS of $0.53 for the third quarter of 2020.

    Net income for the nine months ending September 30, 2021, was $138.8 million, as compared to net income of $52.1 million for the same period in 2020. Basic and diluted EPS were $2.47 and $2.46, respectively, for the first nine months of 2021, as compared to basic and diluted EPS of $0.93 and $0.92, respectively, for the first nine months of 2020.

    “Our team produced solid results during the third quarter, and we continue to see all areas of the Bank perform at a high level. Our financial condition remains strong and is highlighted by our core funding, robust capital structure and stable credit metrics,” commented C. Mitchell Waycaster, Renasant President and Chief Executive Officer. “We believe the markets in which we operate provide significant opportunities, and we remain optimistic about future loan growth, despite the headwinds of elevated payoffs. Our team remains committed to improving profitability through our ongoing revenue and expense initiatives.”

    Impact of Certain Expenses and Charges
    From time to time, the Company incurs expenses and charges with respect to which management is unable to accurately predict when these expenses or charges will be incurred or, when incurred, the amount of such expenses or charges. The following tables present the impact of these expenses and charges on reported EPS for the periods listed. The “COVID-19 related expenses” line item primarily consists of (a) employee overtime and employee benefit accruals directly related to the Company’s response to both the COVID-19 pandemic itself and federal legislation enacted to address the pandemic, such as the CARES Act, and (b) 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) and more frequent and rigorous branch cleaning.

    (in thousands, except per share data)Three Months Ended Nine Months Ended
     September 30, 2021 September 30, 2021
     Pre-tax
    		  After-tax
    		  Impact to
    Diluted EPS    		 Pre-tax
    		  After-tax
    		  Impact to
    Diluted EPS
    Earnings, as reported$51,248  $40,063  $0.71  $174,410  $138,838  $2.46 
    MSR valuation adjustment—  —  —  (13,561) (10,564) (0.19)
    Restructuring charges—  —  —  307  239  — 
    COVID-19 related expenses323  253  —  1,478  1,151  0.02 
    Earnings, with exclusions (Non-GAAP)$51,571  $40,316  $0.71  $162,634  $129,664  $2.29 
            
     Three Months Ended Nine Months Ended
     September 30, 2020 September 30, 2020
     Pre-tax
    		  After-tax
    		  Impact to
    Diluted EPS    		 Pre-tax
    		  After-tax
    		  Impact to
    Diluted EPS
    Earnings, as reported$37,604  $29,992  $0.53  $65,152  $52,130  $0.92 
    Debt prepayment penalty28  22  —  118  94  — 
    MSR valuation adjustment(828) (650) (0.01) 13,694  10,916  0.19 
    COVID-19 related expenses570  448  0.01  9,730  7,758  0.14 
    Earnings, with exclusions (Non-GAAP)$37,374  $29,812  $0.53  $88,694  $70,898  $1.25 

    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, except that reconciliations for asset quality measures that exclude Paycheck Protection Program loans from the relevant measure are included in the Company’s presentation materials filed with the Securities and Exchange Commission together with 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.

    Profitability Metrics
    The following tables present the Company’s profitability metrics, including after adjusting for the impact of the mortgage servicing rights (MSR) valuation adjustment, debt prepayment penalties, restructuring charges, swap termination charges and COVID-19 related expenses, as applicable, for the dates presented:

     As ReportedWith Exclusions
    (Non-GAAP)
     Three Months EndedThree Months Ended
     September
    30, 2021    		June 30, 2021September
    30, 2020    		September
    30, 2021    		June 30, 2021September
    30, 2020
    Return on average assets0.99%1.04%0.80%0.99%1.04%0.79%
    Return on average tangible assets (Non-GAAP)1.08%1.14%0.89%1.09%1.14%0.89%
    Return on average equity7.16%7.40%5.63%7.21%7.46%5.60%
    Return on average tangible equity (Non-GAAP)13.05%13.54%10.87%13.13%13.64%10.81%

            

     As ReportedWith Exclusions
    (Non-GAAP)
     Nine Months EndedNine Months Ended
     September
    30, 2021    		 September
    30, 2020    		September
    30, 2021    		 September
    30, 2020
    Return on average assets1.18% 0.48%1.10% 0.66%
    Return on average tangible assets (Non-GAAP)1.29% 0.56%1.21% 0.75%
    Return on average equity8.43% 3.30%7.87% 4.49%
    Return on average tangible equity (Non-GAAP)15.43% 6.65%14.43% 8.86%

    Financial Condition
    Total assets were $16.16 billion at September 30, 2021, as compared to $14.93 billion at December 31, 2020. Total loans held for investment were $10.02 billion at September 30, 2021, as compared to $10.93 billion at December 31, 2020. Loans held for investment at September 30, 2021 and December 31, 2020 included $67.5 million and $1.13 billion, respectively, in Paycheck Protection Program (“PPP”) loans. Excluding PPP loans, the loan portfolio grew 1.87% on an annualized basis in the third quarter of 2021.

    Total deposits increased to $13.25 billion at September 30, 2021, from $12.06 billion at December 31, 2020. Non-interest bearing deposits increased $807.6 million to $4.49 billion, or 33.89% of total deposits, at September 30, 2021, as compared to $3.69 billion, or 30.56% of total deposits, at December 31, 2020.

    Capital Management; Adoption of New Stock Repurchase Program
    The Company’s capital position, as measured by regulatory capital ratios, remains strong. This capital strength gives the Company flexibility to accommodate future loan growth, M&A activity or share repurchases. In the third quarter of 2021, the Company repurchased $21.3 million of its common stock at a weighted average price of $34.82.

    On October 26, 2021, the Company’s Board of Directors approved a new stock repurchase program (the previous program having just expired), authorizing the Company to repurchase up to $50.0 million of its outstanding common stock, either in open market purchases or privately-negotiated transactions. The new repurchase program will remain in effect for one year or, if earlier, the repurchase of the entire amount of common stock authorized to be repurchased. Notwithstanding the Board’s action, the Company currently has no plans to resume stock repurchases.

    At September 30, 2021, Tier 1 leverage capital was 9.18%, Common Equity Tier 1 ratio was 11.02%, Tier 1 risk-based capital ratio was 11.94% and total risk-based capital ratio was 14.66%. All of the Company’s regulatory ratios exceed the minimums required to be “well-capitalized.”

    The Company’s ratio of shareholders’ equity to assets was 13.64% at September 30, 2021, as compared to 14.29% at December 31, 2020. The Company’s tangible capital ratio (non-GAAP) was 8.15% at September 30, 2021, as compared to 8.33% at December 31, 2020.

    Results of Operations
    Net interest income was $103.3 million for the third quarter of 2021, as compared to $109.6 million for the second quarter of 2021 and $106.3 million for the third quarter of 2020. The decrease quarter over quarter was primarily driven by the decrease in PPP income as the PPP portfolio continued to decline during the quarter due to loan forgiveness. Net interest income was $322.5 million for the first nine months of 2021, as compared to $318.7 million for the first nine months of 2020.

    The following tables present the percentage of total average earning assets, by type and yield, for the periods presented:

     Percentage of Total Average Earning AssetsYield
     Three Months EndedThree Months Ended
     September 30,June 30,September 30,September 30,June 30,September 30,
     202120212020202120212020
    Loans held for investment excluding PPP loans69.38%70.41%74.70%4.02%4.10%4.30%
    PPP loans0.89 4.49 10.01 10.95 6.46 2.27 
    Loans held for sale3.17 3.30 2.90 2.13 3.12 3.31 
    Securities15.90 13.02 9.74 1.59 1.73 2.41 
    Other10.66 8.78 2.65 0.15 0.11 0.10 
    Total earning assets100.00%100.00%100.00%3.23%3.51%3.77%


         
     Percentage of Total Average Earning AssetsYield
     Nine Months EndedNine Months Ended
     September 30,September 30,September 30,September 30,
     2021202020212020
    Loans held for investment excluding PPP loans71.04%77.95%4.12%4.56%
    PPP loans4.17 5.82 5.62 2.45 
    Loans held for sale3.17 2.82 2.73 3.46 
    Securities13.14 10.31 1.76 2.68 
    Other8.48 3.10 0.13 0.38 
    Total earning assets100.00%100.00%3.49%4.08%

    The following tables present reported taxable equivalent net interest margin and yield on loans for the periods presented (in thousands):

     Three Months Ended
     September 30,June 30,September 30,
     202120212020
    Taxable equivalent net interest income$105,002 $111,205 $107,885 
    Average earning assets$14,256,421 $13,989,264 $13,034,422 
    Net interest margin2.93%3.19%3.29%
        
    Taxable equivalent interest income on loans held for investment$103,770 $110,785 $112,764 
    Average loans held for investment$10,017,742 $10,478,121 $11,041,684 
    Loan yield4.11%4.24%4.06%


     Nine Months Ended
     September 30,September 30,
     20212020
    Taxable equivalent net interest income$327,471 $323,659 
    Average earning assets$13,869,538 $12,475,561 
    Net interest margin3.16%3.47%
       
    Taxable equivalent interest income on loans$327,625 $345,232 
    Average loans held for investment$10,431,436 $10,450,537 
    Loan yield4.20%4.41%

    PPP loans benefited net interest margin and loan yield by 7 basis points and 9 basis points, respectively, in the third quarter of 2021, and 11 basis points and 8 basis points, respectively, in the first nine months of 2021. Increased liquidity has continued to add pressure to net interest margin in recent quarters. The Company has aggressively lowered interest rates on interest bearing deposits and increased its purchases of investment securities, and it continues to evaluate options to mitigate the pressure on net interest margin.

    The impact from interest income collected on problem loans and purchase accounting adjustments on loans to total interest income on loans held for investment, loan yield and net interest margin is shown in the following tables for the periods presented (in thousands):

     Three Months Ended
     September 30,June 30,September 30,
     202120212020
    Net interest income collected on problem loans$316 $1,339 $282 
    Accretable yield recognized on purchased loans(1)2,871 2,638 4,949 
    Total impact to interest income$3,187 $3,977 $5,231 
        
    Impact to loan yield0.13%0.15%0.18%
        
    Impact to net interest margin0.09%0.11%0.16%

    (1)   Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $1,649, $1,224 and $2,286 for the three months ended September 30, 2021, June 30, 2021, and September 30, 2020, respectively. This additional interest income increased loan yield by 7 basis points, 5 basis points, and 8 basis points for each of the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively, while increasing net interest margin by 5 basis points, 4 basis points, and 7 basis points for the same periods, respectively.

     Nine Months Ended
     September 30,September 30,
     20212020
    Net interest income collected on problem loans$3,835 $884 
    Accretable yield recognized on purchased loans(1)8,597 15,118 
    Total impact to interest income$12,432 $16,002 
       
    Impact to total loan yield0.16%0.20%
       
    Impact to net interest margin0.12%0.17%

    (1)   Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $4,145 and $6,205 for the nine months ended September 30, 2021 and September 30, 2020, respectively. This additional interest income increased loan yield by 5 basis points and 8 basis points for the same periods, respectively, while increasing net interest margin by 4 basis points and 7 basis points for the same periods, respectively.

    For the third quarter of 2021, the cost of total deposits was 21 basis points, as compared to 24 basis points for the second quarter of 2021 and 40 basis points for the third quarter of 2020. The cost of total deposits was 24 basis points for the first nine months of 2021, down from 53 basis points for the same period in 2020. The tables below present, by type, the Company’s funding sources and the total cost of each funding source for the periods presented:

     Percentage of Total Average Deposits and Borrowed Funds Cost of Funds
     Three Months Ending Three Months Ending
     September 30, June 30, September 30, September 30, June 30, September 30,
     2021 2021 2020 2021 2021 2020
    Noninterest-bearing demand32.64% 31.88% 29.66% —% —% —%
    Interest-bearing demand45.49  45.59  43.06  0.24  0.27  0.36 
    Savings7.35  7.24  6.35  0.08  0.08  0.08 
    Time deposits11.00  11.68  15.20  0.78  0.88  1.42 
    Borrowed funds3.52  3.61  5.73  3.08  3.11  2.20 
    Total deposits and borrowed funds100.00% 100.00% 100.00% 0.31% 0.34% 0.50%


     Percentage of Total Average Deposits and Borrowed Funds Cost of Funds
     Nine Months Ending Nine Months Ending
     September 30, September 30, September 30, September 30,
     2021 2020 2021 2020
    Noninterest-bearing demand31.60% 27.03% —% —%
    Interest-bearing demand45.75  42.95  0.26  0.51 
    Savings7.17  6.17  0.08  0.11 
    Time deposits11.85  16.79  0.90  1.59 
    Borrowed funds3.63  7.06  3.13  2.10 
    Total deposits and borrowed funds100.00% 100.00% 0.34% 0.64%

    Noninterest income for the third quarter of 2021 was $50.8 million, as compared to $47.6 million for the second quarter of 2021 and $70.9 million for the third quarter of 2020. The quarter-over-quarter decline is due to changes in mortgage banking income, as detailed below. Noninterest income for the first nine months of 2021 was $179.4 million, as compared to $172.7 million for the same period in 2020.

    In mortgage banking, the Company’s interest rate lock volume was $1.44 billion in the third quarter of 2021 and $4.71 billion for the first nine months of 2021. Although gain on sale margins continued to compress during the third quarter, mortgage banking income increased on a linked quarter basis. This increase was primarily driven by an improvement in the fair value adjustment to the loan pipeline from the second quarter to the third quarter. The following tables present the components of mortgage banking income for the periods presented (in thousands):

     Three Months Ended
     September 30, 2021June 30, 2021September 30, 2020
    Gain on sales of loans, net$20,116 $17,581 $45,985 
    Fees, net3,420 4,519 5,367 
    Mortgage servicing loss, net(244)(1,247)(2,466)
    MSR valuation adjustment— — 828 
    Mortgage banking income, net$23,292 $20,853 $49,714 


     Nine Months Ended
     September 30, 2021September 30, 2020
    Gain on sales of loans, net$71,598 $114,327 
    Fees, net12,841 13,597 
    Mortgage servicing loss, net(3,122)(3,491)
    MSR valuation adjustment13,561 (13,694)
    Mortgage banking income, net$94,878 $110,739 

    In the third quarter of 2021, the Company experienced increases in other fee income categories, including wealth management and insurance, as compared to the second quarter of 2021 and the third quarter of 2020. The Company also recognized in the third quarter of 2021 $764 thousand in gains on securities sold.

    The Company entered into a referral relationship with a third party to utilize its technology platform for PPP loans originated under the latest round of the program. The Company earned approximately $2.3 million and $1.4 million, respectively, in referral fees from this round of PPP during the first and second quarter of 2021, which are recorded in other noninterest income. No such fees were earned during the third quarter of 2021.

    Noninterest expense was $104.0 million for the third quarter of 2021, as compared to $108.8 million for the second quarter of 2021 and $116.5 million for the third quarter of 2020. Noninterest expense for the first nine months of 2021 was $328.7 million, as compared to $349.8 million for the same period in 2020. The decrease on both a linked quarter and quarter-over-quarter basis in 2021 is partially related to a decrease in salaries and employee benefits, which was driven by lower mortgage incentive compensation expense recognized during the third quarter of 2021 and cost savings realized from the voluntary early retirement program offered during the fourth quarter of 2020. Other noninterest expense in the third quarter of 2021 was down from the second quarter of 2021 primarily due to the full amortization of a $3.1 million tax credit investment recognized during the second quarter of 2021. A corresponding credit of $3.4 million reduced income taxes for the second quarter. Additionally, the Company released a portion of the reserve for unfunded commitments and recorded a negative $200 thousand provision for unfunded commitments in other noninterest expense during the third quarter of 2021.

    Asset Quality Metrics
    At September 30, 2021, the Company’s credit quality metrics remained strong. Loans on deferred payment, as offered through the Company’s loan deferral program, established in response to the COVID-19 pandemic, continue to decline, and as of September 30, 2021, approximately 0.04% of the Company’s loan portfolio (excluding PPP loans) was on deferral, down from approximately 1.5% as of December 31, 2020.

    The table below shows nonperforming assets, which include nonperforming loans (loans 90 days or more past due and nonaccrual loans) and other real estate owned, as well as early stage delinquencies (loans 30-89 days past due), and related financial ratios, as of the dates presented (in thousands):

     September 30, 2021December 31, 2020
     Non PurchasedPurchasedTotalNon PurchasedPurchasedTotal
    Nonaccrual loans$29,266 $26,492 $55,758 $20,369 $31,051 $51,420 
    Loans 90 days past due or more908 74 982 3,783 267 4,050 
    Nonperforming loans$30,174 $26,566 $56,740 $24,152 $31,318 $55,470 
    Other real estate owned2,253 2,452 4,705 2,045 3,927 5,972 
    Nonperforming assets$32,427 $29,018 $61,445 $26,197 $35,245 $61,442 
    Nonperforming loans/total loans  0.57%  0.51%
    Nonperforming loans/total loans excluding PPP loans (non-GAAP)  0.57%  0.57%
    Nonperforming assets/total assets  0.38%  0.41%
    Nonperforming assets/total assets excluding PPP loans (non-GAAP)  0.38%  0.45%
    Loans 30-89 days past due$11,609 $3,197 $14,806 $17,635 $8,651 $26,286 
    Loans 30-89 days past due/total loans  0.15%  0.24%
    Loans 30-89 days past due/total loans excluding PPP loans (non-GAAP)  0.15%  0.27%

    The table below shows the total allowance for credit losses and related ratios at September 30, 2021, as compared to December 31, 2020 (in thousands):

     September 30, 2021December 31, 2020
    Allowance for credit losses on loans$170,038 $176,144 
    Allowance for credit losses on deferred interest1,356 1,500 
    Reserve for unfunded commitments20,335 20,535 
    Total allowance for credit losses$191,729 $198,179 
    Allowance for credit losses on loans/total loans1.70%1.61%
    Allowance for credit losses on loans/total loans excluding PPP loans (non-GAAP)1.71%1.80%

    The Company recorded a negative provision for credit losses of $1.2 million during the third quarter and first nine months of 2021, as compared to a $23.1 million provision for credit losses in the third quarter of 2020 and a $76.4 million provision in the first nine months of 2020. Net loan charge-offs for the third quarter of 2021 were $1.1 million, or 0.04% of average loans held for investment on an annualized basis. The Company’s coverage ratio, or the allowance for credit losses to nonperforming loans, was 299.68% as of September 30, 2021, as compared to 317.55% as of December 31, 2020.

    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 Friday, October 29, 2021.

    The webcast can be accessed through Renasant’s investor relations website at www.renasant.com or https://services.choruscall.com/mediaframe/webcast.html?webcastid=feyQW5Vg. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2021 Third 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 10161149 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until November 12, 2021.

    ABOUT RENASANT CORPORATION:
    Renasant Corporation is the parent of Renasant Bank, a 117-year-old financial services institution. Renasant has assets of approximately $16.2 billion and operates 200 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,” “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 continued impact of the COVID-19 pandemic (and variants thereof) and related governmental response measures on the U.S. economy and the economies of the markets in which we operate; (ii) 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; (iii) the effect of economic conditions and interest rates on a national, regional or international basis; (iv) timing and success of the implementation of changes in operations to achieve enhanced earnings or effect cost savings; (v) competitive pressures in the consumer finance, commercial finance, insurance, financial services, asset management, retail banking, mortgage lending and auto lending industries; (vi) the financial resources of, and products available from, competitors; (vii) changes in laws and regulations as well as changes in accounting standards; (viii) changes in policy by regulatory agencies; (ix) changes in the securities and foreign exchange markets; (x) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (xi) 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; (xii) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xiii) general economic, market or business conditions, including the impact of inflation; (xiv) changes in demand for loan products and financial services; (xv) concentration of credit exposure; (xvi) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xvii) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xviii) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area; (xix) the impact, extent and timing of technological changes; and (xx) 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 contains non-GAAP financial measures, namely, earnings, with exclusions, return on average tangible shareholders’ equity, return on average tangible assets, the ratio of tangible equity to tangible assets (commonly referred to as the “tangible capital ratio”), tangible book value per share, the adjusted efficiency ratio and certain asset quality ratios (nonperforming loans to total loans, nonperforming assets to total assets, loans 30-89 past due to total loans, and the allowance for credit losses to total loans) in each case excluding PPP loans. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and/or certain charges (such as, among others, COVID-19 related expenses, 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 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 (as discussed earlier in this release) 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 its asset quality measures, management excludes PPP loans, which are both forgivable and guaranteed by the Small Business Administration, to more clearly measure potential loss, and the coverage therefor, in the Company’s loan portfolio. 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 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 at the end of this release under the caption “Reconciliation of GAAP to Non-GAAP,” except that reconciliations of the non-GAAP asset quality measures to GAAP are included in the presentation materials that the Company filed with the SEC together with this earnings release.

    None of the non-GAAP financial information that the Company has included in this release is 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.


     

    RENASANT CORPORATION
    (Unaudited)
    (Dollars in thousands, except per share data)            
                    Q3 2021-  For The Nine Months Ending
     2021 2020 Q3 2020 September 30,
      Third Second First Fourth Third Second First Percent     Percent
      Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2021 2020 Variance
    Statement of earnings                      
    Interest income - taxable equivalent basis $115,723  $122,617  $123,378  $123,823  $123,677  $125,630  $131,887  (6.43)% $361,718  $381,194  (5.11)%
    Interest income $114,013  $120,991  $121,762  $121,926  $122,078  $123,955  $130,173  (6.61)  $356,766  $376,206  (5.17) 
    Interest expense 10,721  11,412  12,114  13,799  15,792  18,173  23,571  (32.11)  34,247  57,536  (40.48) 
     Net interest income 103,292  109,579  109,648  108,127  106,286  105,782  106,602  (2.82)  322,519  318,670  1.21 
    (Recovery of) provision for credit losses (1,200)  —  —  10,500  23,100  26,900  26,350  (105.19)  (1,200)  76,350  (101.57) 
     Net interest income after provision 104,492  109,579  109,648  97,627  83,186  78,882  80,252  25.61  323,719  242,320  33.59 
    Service charges on deposit accounts 9,337  9,458  8,023  7,938  7,486  6,832  9,070  24.73  26,818  23,388  14.67 
    Fees and commissions on loans and deposits 3,837  4,110  3,900  3,616  3,402  2,971  3,054  12.79  11,847  9,427  25.67 
    Insurance commissions and fees 2,829  2,422  2,237  2,193  2,681  2,125  1,991  5.52  7,488  6,797  10.17 
    Wealth management revenue 5,371  5,019  4,792  4,314  4,364  3,824  4,002  23.08  15,182  12,190  24.54 
    Securities gains (losses) 764  —  1,357  15  —  31  —  —  2,121  31  6,741.94 
    Mortgage banking income 23,292  20,853  50,733  39,760  49,714  45,490  15,535  (53.15)  94,878  110,739  (14.32) 
    Other 5,325  5,748  9,995  5,028  3,281  2,897  3,918  62.30  21,068  10,096  108.68 
     Total noninterest income 50,755  47,610  81,037  62,864  70,928  64,170  37,570  (28.44)  179,402  172,668  3.90 
    Salaries and employee benefits 69,115  70,293  78,696  74,432  75,406  79,361  73,189  (8.34)  218,104  227,956  (4.32) 
    Data processing 5,277  5,652  5,451  5,373  5,259  5,047  5,006  0.34  16,380  15,312  6.97 
    Occupancy and equipment 11,748  11,374  12,538  13,153  13,296  13,511  14,120  (11.64)  35,660  40,927  (12.87) 
    Other real estate 168  104  41  683  1,033  620  418  (83.74)  313  2,071  (84.89) 
    Amortization of intangibles 1,481  1,539  1,598  1,659  1,733  1,834  1,895  (14.54)  4,618  5,462  (15.45) 
    Restructuring charges —  15  292  7,365  —  —  —  —  307  —  — 
    Swap termination charges —  —  —  2,040  —  —  —  —  —  —  — 
    Debt prepayment penalty —  —  —  3  28  90  —  (100.00)  —  118  (100.00) 
    Other 16,210  19,800  17,319  17,444  19,755  17,822  20,413  (17.94)  53,329  57,990  (8.04) 
     Total noninterest expense 103,999  108,777  115,935  122,152  116,510  118,285  115,041  (10.74)  328,711  349,836  (6.04) 
    Income before income taxes 51,248  48,412  74,750  38,339  37,604  24,767  2,781  36.28  174,410  65,152  167.70 
    Income taxes 11,185  7,545  16,842  6,818  7,612  4,637  773  46.94  35,572  13,022  173.17 
     Net income $40,063  $40,867  $57,908  $31,521  $29,992  $20,130  $2,008  33.58  $138,838  $52,130  166.33 
    Basic earnings per share $0.71  $0.73  $1.03  $0.56  $0.53  $0.36  $0.04  33.96  $2.47  $0.93  165.59 
    Diluted earnings per share 0.71  0.72  1.02  0.56  0.53  0.36  0.04  33.96  2.46  0.92  167.39 
    Average basic shares outstanding 56,146,285  56,325,717  56,240,201  56,197,847  56,185,884  56,165,452  56,534,816  (0.07)  56,237,056  56,294,984  (0.10) 
    Average diluted shares outstanding 56,447,184  56,635,898  56,519,199  56,489,809  56,386,153  56,325,476  56,706,289  0.11  56,533,094  56,468,577  0.11 
    Common shares outstanding 55,747,407  56,350,878  56,294,346  56,200,487  56,193,705  56,181,962  56,141,018  (0.79)  55,747,407  56,193,705  (0.79) 
    Cash dividend per common share $0.22  $0.22  $0.22  $0.22  $0.22  $0.22  $0.22  —  $0.66  $0.66  — 
    Performance ratios                      
    Return on avg shareholders’ equity 7.16% 7.40% 10.81% 5.88% 5.63% 3.85% 0.38%   8.43% 3.30%  
    Return on avg tangible s/h’s equity (non-GAAP) (1) 13.05% 13.54% 19.93% 11.26% 10.87% 7.72% 1.20%   15.43% 6.65%  
    Return on avg assets 0.99% 1.04% 1.54% 0.84% 0.80% 0.55% 0.06%   1.18% 0.48%  
    Return on avg tangible assets (non-GAAP)(2) 1.08% 1.14% 1.69% 0.94% 0.89% 0.63% 0.11%   1.29% 0.56%  
    Net interest margin (FTE) 2.93% 3.19% 3.37% 3.35% 3.29% 3.38% 3.75%   3.16% 3.47%  
    Yield on earning assets (FTE) 3.23% 3.51% 3.74% 3.77% 3.77% 3.95% 4.57%   3.49% 4.08%  
    Cost of funding 0.31% 0.34% 0.38% 0.44% 0.50% 0.59% 0.85%   0.34% 0.64%  
    Average earning assets to average assets 88.38% 88.37% 87.86% 87.66% 87.31% 86.88% 86.17%   88.21% 86.81%  
    Average loans to average deposits 75.81% 81.13% 87.78% 91.83% 93.31% 93.35% 93.83%   81.41% 93.48%  
    Noninterest income (less securities gains/                      
    losses) to average assets 1.23% 1.21% 2.13% 1.68% 1.89% 1.75% 1.12%   1.51% 1.60%  
    Noninterest expense (less debt prepayment penalties)                      
    to average assets 2.56% 2.76% 3.09% 3.26% 3.10% 3.23% 3.43%   2.80% 3.25%  
    Net overhead ratio 1.33% 1.55% 0.96% 1.58% 1.21% 1.48% 2.31%   1.29% 1.65%  
    Efficiency ratio (FTE) 66.77% 68.49% 60.29% 70.65% 65.16% 68.92% 78.86%   64.85% 70.49%  
    Adjusted efficiency ratio (FTE) (non-GAAP) (4) 66.06% 67.28% 63.85% 64.35% 62.63% 60.89% 68.73%   65.66% 63.89%  
     
    RENASANT CORPORATION
    (Unaudited)
    (Dollars in thousands, except per share data)
                    Q3 2021 - As of
     2021 2020 Q3 2020 September 30,
      Third Second First Fourth Third Second First Percent     Percent
      Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2021 2020 Variance
    Average Balances                      
    Total assets $16,130,149  $15,831,018  $15,203,691  $14,898,055  $14,928,159  $14,706,027  $13,472,550  8.05% $15,723,110  $14,370,953  9.41%
    Earning assets 14,256,421  13,989,264  13,358,677  13,059,967  13,034,422  12,776,643  11,609,477  9.38  13,869,538  12,475,561  11.17 
    Securities 2,266,866  1,821,429  1,372,123  1,269,108  1,269,565  1,295,539  1,292,875  78.55  1,821,770  1,285,933  41.67 
    Loans held for sale 451,586  461,752  406,397  389,435  378,225  340,582  336,829  19.40  439,954  351,975  25.00 
    Loans, net of unearned income 10,017,742  10,478,121  10,802,991  11,019,505  11,041,684  10,616,147  9,687,285  (9.27)  10,431,436  10,450,537  (0.18) 
    Intangibles 965,960  967,430  969,001  970,624  972,394  974,237  975,933  (0.66)  967,458  974,182  (0.69) 
    Noninterest-bearing deposits 4,470,262  4,271,464  3,862,422  3,808,595  3,723,059  3,439,634  2,586,963  20.07  4,202,364  3,251,612  29.24 
    Interest-bearing deposits 8,744,757  8,644,386  8,444,766  8,190,997  8,109,844  7,933,035  7,737,615  7.83  8,611,790  7,927,499  8.63 
    Total deposits 13,215,019  12,915,850  12,307,188  11,999,592  11,832,903  11,372,669  10,324,578  11.68  12,814,154  11,179,111  14.63 
    Borrowed funds 482,709  483,081  483,907  516,414  719,800  1,000,789  829,320  (32.94)  483,230  849,494  (43.12) 
    Shareholders' equity 2,219,431  2,213,743  2,172,425  2,132,375  2,119,500  2,101,092  2,105,143  4.71  2,201,930  2,108,618  4.43 
                          
                   Q3 2021 - As of
     2021 2020 Q4 2020 September 30,
      Third Second First Fourth Third Second First Percent     Percent
      Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2021 2020 Variance
    Balances at period end                      
    Total assets $16,155,550  $16,022,386  $15,622,571  $14,929,612  $14,808,933  $14,897,207  $13,900,550  8.21% $16,155,550  $14,808,933  9.09%
    Earning assets 14,321,001  14,146,304  13,781,374  13,151,707  12,984,651  13,041,846  11,980,482  8.89  14,321,001  12,984,651  10.29 
    Securities 2,544,643  2,163,820  1,536,041  1,343,457  1,293,388  1,303,494  1,359,129  89.41  2,544,643  1,293,388  96.74 
    Loans held for sale 452,869  448,959  502,002  417,771  399,773  339,747  448,797  8.40  452,869  399,773  13.28 
    Non purchased loans 8,875,880  8,892,544  9,292,502  9,419,540  9,424,224  9,206,101  7,802,404  (5.77)  8,875,880  9,424,224  (5.82) 
    Purchased loans 1,140,944  1,256,698  1,395,906  1,514,107  1,660,514  1,791,203  1,966,973  (24.65)  1,140,944  1,660,514  (31.29) 
     Total loans 10,016,824  10,149,242  10,688,408  10,933,647  11,084,738  10,997,304  9,769,377  (8.39)  10,016,824  11,084,738  (9.63) 
    Intangibles 965,205  966,686  968,225  969,823  971,481  973,214  975,048  (0.48)  965,205  971,481  (0.65) 
    Noninterest-bearing deposits 4,492,650  4,349,135  4,135,360  3,685,048  3,758,242  3,740,296  2,642,059  21.92  4,492,650  3,758,242  19.54 
    Interest-bearing deposits 8,762,179  8,766,216  8,601,548  8,374,033  8,175,898  8,106,062  7,770,367  4.64  8,762,179  8,175,898  7.17 
     Total deposits 13,254,829  13,115,351  12,736,908  12,059,081  11,934,140  11,846,358  10,412,426  9.92  13,254,829  11,934,140  11.07 
    Borrowed funds 480,116  484,340  479,814  496,310  517,706  718,490  1,179,631  (3.26)  480,116  517,706  (7.26) 
    Shareholders’ equity 2,203,944  2,203,807  2,173,701  2,132,733  2,104,300  2,082,946  2,070,512  3.34  2,203,944  2,104,300  4.74 
    Market value per common share 36.05  40.00  41.38  33.68  22.72  24.90  21.84  7.04  36.05  22.72  58.67 
    Book value per common share 39.53  39.11  38.61  37.95  37.45  37.07  36.88  4.16  39.53  37.45  5.55 
    Tangible book value per common share (non-GAAP) 22.22  21.95  21.41  20.69  20.16  19.75  19.51  7.39  22.22  20.16  10.22 
    Shareholders’ equity to assets (actual) 13.64% 13.75% 13.91% 14.29% 14.21% 13.98% 14.91%   13.64% 14.21%  
    Tangible capital ratio (non-GAAP)(3) 8.15% 8.22% 8.23% 8.33% 8.19% 7.97% 8.48%   8.15% 8.19%  
    Leverage ratio 9.18% 9.30% 9.49% 9.37% 9.17% 9.12% 9.90%   9.18% 9.17%  
    Common equity tier 1 capital ratio 11.02% 11.14% 11.05% 10.93% 10.80% 10.69% 10.63%   11.02% 10.80%  
    Tier 1 risk-based capital ratio 11.94% 12.07% 12.00% 11.91% 11.79% 11.69% 11.63%   11.94% 11.79%  
    Total risk-based capital ratio 14.66% 15.11% 15.09% 15.07% 14.89% 13.72% 13.44%   14.66% 14.89%  
     
    RENASANT CORPORATION
    (Unaudited)
    (Dollars in thousands, except per share data)
                    Q3 2021 - As of
     2021 2020 Q4 2020 September 30,
      Third Second First Fourth Third Second First Percent     Percent
      Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2021 2020 Variance
    Non purchased loans                       
    Commercial, financial, agricultural $1,254,107  $1,262,977  $1,244,580  $1,231,768  $1,137,322  $1,134,965  $1,144,004  1.81% $1,254,107  $1,137,322  10.27%
    SBA Paycheck Protection Program 67,462  246,931  860,864  1,128,703  1,307,972  1,281,278  —  (94.02)  67,462  1,307,972  (94.84) 
    Lease financing 79,215  74,003  75,256  75,862  82,928  80,779  84,679  4.42  79,215  82,928  (4.48) 
    Real estate - construction 1,086,303  1,038,613  933,586  827,152  738,873  756,872  745,066  31.33  1,086,303  738,873  47.02 
    Real estate - 1-4 family mortgages 2,484,396  2,435,574  2,380,920  2,356,564  2,369,292  2,342,987  2,356,627  5.42  2,484,396  2,369,292  4.86 
    Real estate - commercial mortgages 3,794,898  3,723,309  3,676,160  3,649,629  3,610,642  3,400,718  3,242,172  3.98  3,794,898  3,610,642  5.10 
    Installment loans to individuals 109,499  111,137  121,136  149,862  177,195  208,502  229,856  (26.93)  109,499  177,195  (38.20) 
    Loans, net of unearned income $8,875,880  $8,892,544  $9,292,502  $9,419,540  $9,424,224  $9,206,101  $7,802,404  (5.77)  $8,875,880  $9,424,224  (5.82) 
    Purchased loans                         
    Commercial, financial, agricultural $114,450  $124,725  $143,843  $176,513  $202,768  $225,355  $280,572  (35.16)  $114,450  $202,768  (43.56) 
    Real estate - construction 4,993  12,746  22,332  30,952  34,246  34,236  42,829  (83.87)  4,993  34,246  (85.42) 
    Real estate - 1-4 family mortgages 240,347  266,517  305,141  341,744  391,102  445,526  489,674  (29.67)  240,347  391,102  (38.55) 
    Real estate - commercial mortgages 740,832  806,860  872,867  905,223  966,367  1,010,035  1,066,536  (18.16)  740,832  966,367  (23.34) 
    Installment loans to individuals 40,322  45,850  51,723  59,675  66,031  76,051  87,362  (32.43)  40,322  66,031  (38.93) 
    Loans, net of unearned income $1,140,944  $1,256,698  $1,395,906  $1,514,107  $1,660,514  $1,791,203  $1,966,973  (24.65)  $1,140,944  $1,660,514  (31.29) 
    Asset quality data                         
    Non purchased assets                         
    Nonaccrual loans $29,266  $27,101  $24,794  $20,369  $18,831  $16,591  $21,384  43.68  $29,266  $18,831  55.41 
    Loans 90 past due or more 908  800  2,235  3,783  1,826  3,993  4,459  (76.00)  908  1,826  (50.27) 
    Nonperforming loans 30,174  27,901  27,029  24,152  20,657  20,584  25,843  24.93  30,174  20,657  46.07 
    Other real estate owned 2,253  1,676  2,292  2,045  3,576  4,694  3,241  10.17  2,253  3,576  (37.00) 
    Nonperforming assets $32,427  $29,577  $29,321  $26,197  $24,233  $25,278  $29,084  23.78  $32,427  $24,233  33.81 
    Purchased assets                         
    Nonaccrual loans $26,492  $27,690  $28,947  $31,051  $24,821  $21,361  $19,090  (14.68)  $26,492  $24,821  6.73 
    Loans 90 past due or more 74  945  129  267  318  2,158  5,104  (72.28)  74  318  (76.73) 
    Nonperforming loans 26,566  28,635  29,076  31,318  25,139  23,519  24,194  (15.17)  26,566  25,139  5.68 
    Other real estate owned 2,452  3,263  3,679  3,927  4,576  4,431  5,430  (37.56)  2,452  4,576  (46.42) 
    Nonperforming assets $29,018  $31,898  $32,755  $35,245  $29,715  $27,950  $29,624  (17.67)  $29,018  $29,715  (2.35) 
    Net loan charge-offs (recoveries) $1,116  $752  $3,038  $954  $389  $1,698  $811  16.98  $4,906  $2,898  69.29 
    Allowance for credit losses on loans $170,038  $172,354  $173,106  $176,144  $168,098  $145,387  $120,185  (3.47)  $170,038  $168,098  1.15 
    Annualized net loan charge-offs / average loans 0.04% 0.03% 0.11% 0.03% 0.01% 0.06% 0.03%   0.06% 0.04%  
    Nonperforming loans / total loans* 0.57% 0.56% 0.52% 0.51% 0.41% 0.40% 0.51%   0.57% 0.41%  
    Nonperforming assets / total assets* 0.38% 0.38% 0.40% 0.41% 0.36% 0.36% 0.42%   0.38% 0.36%  
    Allowance for credit losses on loans / total loans* 1.70% 1.70% 1.62% 1.61% 1.52% 1.32% 1.23%   1.70% 1.52%  
    Allowance for credit losses on loans / nonperforming loans* 299.68% 304.85% 308.54% 317.55% 367.05% 329.65% 240.19%   299.68% 367.05%  
    Nonperforming loans / total loans** 0.34% 0.31% 0.29% 0.26% 0.22% 0.22% 0.33%   0.34% 0.22%  
    Nonperforming assets / total assets** 0.20% 0.18% 0.19% 0.18% 0.16% 0.17% 0.21%   0.20% 0.16%  
    Nonperforming loans / total loans*** (non-GAAP) 0.57% 0.57% 0.57% 0.57% 0.47% 0.45% 0.51%   0.57% 0.47%  
    Nonperforming assets / total assets*** (non-GAAP) 0.38% 0.39% 0.42% 0.45% 0.40% 0.39% 0.42%   0.38% 0.40%  
    Allowance for credit losses on loans / total loans*** (non-GAAP) 1.71% 1.74% 1.76% 1.80% 1.72% 1.50% 1.23%   1.71% 1.72%  
    *Based on all assets (includes purchased assets)
    **Excludes all purchased assets
    ***Excludes Paycheck Protection Program loans


    RENASANT CORPORATION
    (Unaudited)
    (Dollars in thousands, except per share data)
                                             
      Three Months Ending For The Nine Months Ending
      September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
      Average Interest Yield/   Average Interest Yield/   Average Interest Yield/    Average   Interest  Yield/     Average   Interest  Yield/   
    BalanceIncome/ RateBalanceIncome/ RateBalanceIncome/ Rate  Balance  Income/  Rate  Balance   Income/   Rate 
     Expense  Expense  Expense      Expense        Expense    
    Assets                                        
    Interest-earning assets:                                        
    Loans                                        
    Non purchased $8,690,443  $84,427  3.86% $8,521,028  $82,774  3.90% $8,012,741  $81,281  4.04% $8,525,359  $249,128  3.91% $7,847,197  $251,671  4.28%
    Purchased 1,200,429  15,840  5.24% 1,328,631  17,891  5.40% 1,723,714  24,034  5.55% 1,327,434  54,187  5.46% 1,877,449  80,226  5.71%
    SBA Paycheck Protection Program 126,870  3,503  10.95% 628,462  10,120  6.46% 1,305,229  7,449  2.27% 578,643  24,310  5.62% 725,891  13,335  2.45%
    Total loans 10,017,742  103,770  4.11% 10,478,121  110,785  4.24% 11,041,684  112,764  4.06% 10,431,436  327,625  4.20% 10,450,537  345,232  4.41%
    Loans held for sale 451,586  2,376  2.13% 461,752  3,604  3.12% 378,225  3,144  3.31% 439,954  8,980  2.73% 351,975  9,108  3.46%
    Securities:                              
    Taxable(1) 1,942,647  6,688  1.38% 1,503,605  5,549  1.48% 1,003,886  5,473  2.17% 1,505,611  17,077  1.51% 1,034,189  19,148  2.47%
    Tax-exempt 324,219  2,297  2.83% 317,824  2,333  2.94% 265,679  2,205  3.30% 316,159  6,915  2.92% 251,744  6,609  3.51%
    Total securities 2,266,866  8,985  1.59% 1,821,429  7,882  1.73% 1,269,565  7,678  2.41% 1,821,770  23,992  1.76% 1,285,933  25,757  2.68%
    Interest-bearing balances with banks 1,520,227  592  0.15% 1,227,962  346  0.11% 344,948  91  0.10% 1,176,378  1,121  0.13% 387,116  1,098  0.38%
    Total interest-earning assets 14,256,421  115,723  3.23% 13,989,264  122,617  3.51% 13,034,422  123,677  3.77% 13,869,538  361,718  3.49% 12,475,561  381,195  4.08%
    Cash and due from banks 195,095      195,982      210,278      198,955      203,582     
    Intangible assets 965,960      967,430      972,394      967,458      974,182     
    Other assets 712,673      678,342      711,065      687,159      717,628     
    Total assets $16,130,149      $15,831,018      $14,928,159      $15,723,110      $14,370,953     
    Liabilities and shareholders’ equity                              
    Interest-bearing liabilities:                              
    Deposits:                              
    Interest-bearing demand(2) $6,231,718  $3,821  0.24% $6,109,956  $4,069  0.27% $5,405,085  $4,839  0.36% $6,083,179  $11,821  0.26% $5,166,393  $19,616  0.51%
    Savings deposits 1,006,847  192  0.08% 969,982  185  0.08% 796,841  167  0.08% 953,391  547  0.08% 741,933  592  0.11%
    Time deposits 1,506,192  2,959  0.78% 1,564,448  3,415  0.88% 1,907,918  6,804  1.42% 1,575,220  10,552  0.90% 2,019,173  23,967  1.59%
    Total interest-bearing deposits 8,744,757  6,972  0.32% 8,644,386  7,669  0.36% 8,109,844  11,810  0.58% 8,611,790  22,920  0.36% 7,927,499  44,175  0.74%
    Borrowed funds 482,709  3,749  3.08% 483,081  3,743  3.11% 719,800  3,982  2.20% 483,230  11,327  3.13% 849,494  13,361  2.10%
    Total interest-bearing liabilities 9,227,466  10,721  0.46% 9,127,467  11,412  0.50% 8,829,644  15,792  0.71% 9,095,020  34,247  0.50% 8,776,993  57,536  0.88%
    Noninterest-bearing deposits 4,470,262      4,271,464      3,723,059      4,202,364      3,251,612     
    Other liabilities 212,990      218,344      255,956      223,796      233,730     
    Shareholders’ equity 2,219,431      2,213,743      2,119,500      2,201,930      2,108,618     
    Total liabilities and shareholders’ equity $16,130,149      $15,831,018      $14,928,159      $15,723,110      $14,370,953     
    Net interest income/ net interest margin   $105,002  2.93%   $111,205  3.19%   $107,885  3.29%   $327,471  3.16%   $323,659  3.47%
    Cost of funding     0.31%     0.34%     0.50%     0.34%     0.64%
    Cost of total deposits     0.21%     0.24%     0.40%     0.24%     0.53%
                                             
    (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.
                                             


    RENASANT CORPORATION
    (Unaudited)
    (Dollars in thousands, except per share data)
        RECONCILIATION OF GAAP TO NON-GAAP
                      Nine Months Ended
       2021 2020 September 30,
        Third Second First Fourth Third Second First    
      Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2021 2020
    Net income (GAAP) $40,063  $40,867  $57,908  $31,521  $29,992  $20,130  $2,008  $138,838  $52,130 
    Amortization of intangibles 1,481  1,539  1,598  1,659  1,733  1,834  1,895  4,618  5,462 
    Tax effect of adjustment noted above (A) (323)  (333)  (361)  (297)  (374)  (335)  (527)  (1,021)  (1,108) 
    Tangible net income (non-GAAP) $41,221  $42,073  $59,145  $32,883  $31,351  $21,629  $3,376  $142,435  $56,484 
                         
    Net income (GAAP) $40,063  $40,867  $57,908  $31,521  $29,992  $20,130  $2,008  $138,838  $52,130 
    Debt prepayment penalties —  —  —  3  28  90  —  —  118 
    MSR valuation adjustment —  —  (13,561)  (1,968)  (828)  4,951  9,571  (13,561)  13,694 
    Restructuring charges —  15  292  7,365  —  —  —  307  — 
    Swap termination charges —  —  —  2,040  —  —  —  —  — 
    COVID-19 related expenses 323  370  785  613  570  6,257  2,903  1,478  9,730 
    Tax effect of adjustment noted above (A) (71)  (83)  2,820  (1,443)  50  (2,065)  (3,467)  2,603  (4,774) 
    Net income with exclusions (non-GAAP) $40,315  $41,169  $48,244  $38,131  $29,812  $29,363  $11,015  $129,665  $70,898 
                         
    Average shareholders’ equity (GAAP) $2,219,431  $2,213,743  $2,172,425  $2,132,375  $2,119,500  $2,101,092  $2,105,143  $2,201,930  $2,108,618 
    Intangibles 965,960  967,430  969,001  970,624  972,394  974,237  975,933  967,458  974,182 
    Average tangible s/h’s equity (non-GAAP) $1,253,471  $1,246,313  $1,203,424  $1,161,751  $1,147,106  $1,126,855  $1,129,210  $1,234,472  $1,134,436 
                         
    Average total assets (GAAP) $16,130,149  $15,831,018  $15,203,691  $14,898,055  $14,928,159  $14,706,027  $13,472,550  $15,723,110  $14,370,953 
    Intangibles 965,960  967,430  969,001  970,624  972,394  974,237  975,933  967,458  974,182 
    Average tangible assets (non-GAAP) $15,164,189  $14,863,588  $14,234,690  $13,927,431  $13,955,765  $13,731,790  $12,496,617  $14,755,652  $13,396,771 
                         
    Actual shareholders’ equity (GAAP) $2,203,944  $2,203,807  $2,173,701  $2,132,733  $2,104,300  $2,082,946  $2,070,512  $2,203,944  $2,104,300 
    Intangibles 965,205  966,686  968,225  969,823  971,481  973,214  975,048  965,205  971,481 
    Actual tangible s/h’s equity (non-GAAP) $1,238,739  $1,237,121  $1,205,476  $1,162,910  $1,132,819  $1,109,732  $1,095,464  $1,238,739  $1,132,819 
                         
    Actual total assets (GAAP) $16,155,550  $16,022,386  $15,622,571  $14,929,612  $14,808,933  $14,897,207  $13,900,550  $16,155,550  $14,808,933 
    Intangibles 965,205  966,686  968,225  969,823  971,481  973,214  975,048  965,205  971,481 
    Actual tangible assets (non-GAAP) $15,190,345  $15,055,700  $14,654,346  $13,959,789  $13,837,452  $13,923,993  $12,925,502  $15,190,345  $13,837,452 
                         
    (A) Tax effect is calculated based on respective periods effective tax rate.


    RENASANT CORPORATION
    (Unaudited)
    (Dollars in thousands, except per share data)
        RECONCILIATION OF GAAP TO NON-GAAP
                      Nine Months Ended
       2021 2020 September 30,
        Third Second First Fourth Third Second First    
      Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2021 2020
    (1) Return on Average Equity                  
    Return on avg s/h’s equity (GAAP) 7.16% 7.40% 10.81% 5.88% 5.63% 3.85% 0.38% 8.43% 3.30%
    Effect of adjustment for intangible assets 5.89% 6.14% 9.12% 5.38% 5.24% 3.87% 0.82% 7.00% 3.35%
    Return on avg tangible s/h’s equity (non-GAAP) 13.05% 13.54% 19.93% 11.26% 10.87% 7.72% 1.20% 15.43% 6.65%
                         
    Return on avg s/h’s equity (GAAP) 7.16% 7.40% 10.81% 5.88% 5.63% 3.85% 0.38% 8.43% 3.30%
    Effect of exclusions from net income 0.05% 0.06% (1.80)% 1.23% (0.03)% 1.77% 1.72% (0.56)% 1.19%
    Return on avg s/h’s equity with excl. (non-GAAP) 7.21% 7.46% 9.01% 7.11% 5.60% 5.62% 2.10% 7.87% 4.49%
    Effect of adjustment for intangible assets 5.92% 6.18% 7.67% 6.41% 5.21% 5.39% 2.31% 6.56% 4.37%
    Return on avg tangible s/h’s equity with exclusions (non-GAAP) 13.13% 13.64% 16.68% 13.52% 10.81% 11.01% 4.41% 14.43% 8.86%
                         
    (2) Return on Average Assets                  
    Return on avg assets (GAAP) 0.99% 1.04% 1.54% 0.84% 0.80% 0.55% 0.06% 1.18% 0.48%
    Effect of adjustment for intangible assets 0.09% 0.10% 0.15% 0.10% 0.09% 0.08% 0.05% 0.11% 0.08%
    Return on avg tangible assets (non-GAAP) 1.08% 1.14% 1.69% 0.94% 0.89% 0.63% 0.11% 1.29% 0.56%
                         
    Return on avg assets (GAAP) 0.99% 1.04% 1.54% 0.84% 0.80% 0.55% 0.06% 1.18% 0.48%
    Effect of exclusions from net income —% —% (0.25)% 0.18% (0.01)% 0.25% 0.27% (0.08)% 0.18%
    Return on avg assets with exclusions (non-GAAP) 0.99% 1.04% 1.29% 1.02% 0.79% 0.80% 0.33% 1.10% 0.66%
    Effect of adjustment for intangible assets 0.10% 0.10% 0.12% 0.11% 0.10% 0.10% 0.07% 0.11% 0.09%
    Return on avg tangible assets with exclusions (non-GAAP) 1.09% 1.14% 1.41% 1.13% 0.89% 0.90% 0.40% 1.21% 0.75%
                         
    (3) Shareholder Equity Ratio                   
    Shareholders’ equity to actual assets (GAAP) 13.64% 13.75% 13.91% 14.29% 14.21% 13.98% 14.91% 13.64% 14.21%
    Effect of adjustment for intangible assets 5.49% 5.53% 5.68% 5.96% 6.02% 6.01% 6.43% 5.49% 6.02%
    Tangible capital ratio (non-GAAP) 8.15% 8.22% 8.23% 8.33% 8.19% 7.97% 8.48% 8.15% 8.19%


    RENASANT CORPORATION
    (Unaudited)
    (Dollars in thousands, except per share data)
                        
                        
                     Nine Months Ended
      2021 2020  September 30,
      Third Second First Fourth Third Second First     
      Quarter Quarter Quarter Quarter Quarter Quarter Quarter  2021 2020
    Interest income (FTE)$115,723  $122,617  $123,378  $123,823  $123,677  $125,630  $131,887   $361,718  $381,194 
    Interest expense10,721  11,412  12,114  13,799  15,792  18,173  23,571   34,247  57,536 
    Net Interest income (FTE)$105,002  $111,205  $111,264  $110,024  $107,885  $107,457  $108,316   $327,471  $323,658 
                        
    Total noninterest income$50,755  $47,610  $81,037  $62,864  $70,928  $64,170  $37,570   $179,402  $172,668 
    Securities gains (losses)764  —  1,357  15  —  31  —   2,121  31 
    MSR valuation adjustment—  —  13,561  1,968  828  (4,951) (9,571)  13,561  (13,694)
    Total adjusted noninterest income$49,991  $47,610  $66,119  $60,881  $70,100  $69,090  $47,141   $163,720  $186,331 
                        
    Total noninterest expense$103,999  $108,777  $115,935  $122,152  $116,510  $118,285  $115,041   $328,711  $349,836 
    Amortization of intangibles1,481  1,539  1,598  1,659  1,733  1,834  1,895   4,618  5,462 
    Debt prepayment penalty—  —  —  3  28  90  —   —  118 
    Restructuring charges—  15  292  7,365  —  —  —   307  — 
    Swap termination charges—  —  —  2,040  —  —  —   —  — 
    COVID-19 related expenses323  370  785  613  570  6,257  2,903   1,478  9,730 
    (Recovery of) provision for unfunded commitments(200) —  —  500  2,700  2,600  3,400   (200) 8,700 
    Total adjusted noninterest expense$102,395  $106,853  $113,260  $109,972  $111,479  $107,504  $106,843   $322,508  $325,826 
                        
    Efficiency Ratio (GAAP)66.77% 68.49% 60.29% 70.65% 65.16% 68.92% 78.86%  64.85% 70.49%
    (4) Adjusted Efficiency Ratio (non-GAAP)66.06% 67.28% 63.85% 64.35% 62.63% 60.89% 68.73%  65.66% 63.89%

     

    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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