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Renasant Corporation Announces Earnings for the Second Quarter of 2021

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TUPELO, Miss., July 27, 2021 (GLOBE NEWSWIRE) -- Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the second quarter of 2021. Net income for the second quarter of 2021 was $40.9 million, as compared to $20.1 million for the second quarter of 2020. Basic and diluted earnings per share (“EPS”) were $0.73 and $0.72, respectively, for the second quarter of 2021, as compared to basic and diluted EPS of $0.36 for the second quarter of 2020.

Net income for the six months ending June 30, 2021, was $98.8 million, as compared to net income of $22.1 million for the same period in 2020. Basic and diluted EPS were $1.75 for the first six months of 2021, as compared to basic and diluted EPS of $0.39 for the first six months of 2020.

“Our team performed well during the second quarter, as we continued to increase our core deposits and net loans (excluding PPP) and maintained stable credit metrics,” commented C. Mitchell Waycaster, Renasant President and Chief Executive Officer. “We are optimistic about future loan growth, despite the headwinds of elevated payoffs, because we believe we operate in a number of dynamic markets that provide a variety of opportunities for new business. As we move forward, we are focused on efficiency gains from both revenue and expense initiatives that have been implemented.”

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

Six Months Ended

June 30, 2021

June 30, 2021

Pre-tax

After-tax

Impact to Diluted EPS

Pre-tax

After-tax

Impact to Diluted EPS

Earnings, as reported

$

48,412

$

40,867

$

0.72

$

123,162

$

98,775

$

1.75

MSR valuation adjustment

(13,561

)

(10,549

)

(0.19

)

Restructuring charges

15

12

307

239

COVID-19 related expenses

370

289

0.01

1,154

898

0.02

Earnings, with exclusions (Non-GAAP)

$

48,797

$

41,168

$

0.73

$

111,062

$

89,363

$

1.58

Three Months Ended

Six Months Ended

June 30, 2020

June 30, 2020

Pre-tax

After-tax

Impact to Diluted EPS

Pre-tax

After-tax

Impact to Diluted EPS

Earnings, as reported

$

24,767

$

20,130

$

0.36

$

27,548

$

22,138

$

0.39

MSR valuation adjustment

4,951

4,047

0.07

14,522

11,835

0.21

COVID-19 related expenses

6,257

5,113

0.09

9,160

7,465

0.13

Earnings, with exclusions (Non-GAAP)

$

35,975

$

29,290

$

0.52

$

51,230

$

41,438

$

0.73



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.

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 Reported

With Exclusions
(Non-GAAP)

Three Months Ended

Three Months Ended

June 30, 2021

March 31, 2021

June 30, 2020

June 30, 2021

March 31, 2021

June 30, 2020

Return on average assets

1.04

%

1.54

%

0.55

%

1.04

%

1.29

%

0.80

%

Return on average tangible assets (Non-GAAP)

1.14

%

1.69

%

0.63

%

1.14

%

1.41

%

0.90

%

Return on average equity

7.40

%

10.81

%

3.85

%

7.46

%

9.01

%

5.62

%

Return on average tangible equity (Non-GAAP)

13.54

%

19.93

%

7.72

%

13.64

%

16.68

%

11.01

%

As Reported

With Exclusions
(Non-GAAP)

Six Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Return on average assets

1.28

%

0.32

%

1.16

%

0.59

%

Return on average tangible assets (Non-GAAP)

1.40

%

0.39

%

1.27

%

0.68

%

Return on average equity

9.08

%

2.12

%

8.22

%

3.97

%

Return on average tangible equity (Non-GAAP)

16.66

%

4.49

%

15.11

%

7.94

%

Financial Condition
Total assets were $16.02 billion at June 30, 2021, as compared to $14.93 billion at December 31, 2020. Total loans held for investment were $10.15 billion at June 30, 2021, as compared to $10.93 billion at December 31, 2020. Loans held for investment at June 30, 2021 included $246.9 million in Paycheck Protection Program (“PPP”) loans. Excluding PPP loans, the loan portfolio grew 3.05% on an annualized basis in the second quarter of 2021.

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 $1.4 million in referral fees from this round of PPP during the second quarter of 2021, which are recorded in noninterest income. Total referral fees earned during the first half of 2021 were $3.7 million.

Total deposits increased to $13.12 billion at June 30, 2021, from $12.06 billion at December 31, 2020. Non-interest bearing deposits increased $664.1 million to $4.35 billion, or 33.16% of total deposits, at June 30, 2021, as compared to $3.69 billion, or 30.56% of total deposits, at December 31, 2020.

Capital Management
The Company’s capital position, as measured by regulatory capital ratios, continues to improve. This capital strength gives the Company flexibility to accommodate future loan growth, M&A activity or share repurchases. The Company has a $50.0 million stock repurchase plan that will remain in effect through October 2021. The Company did not repurchase any shares under the plan in the first half of 2021.

At June 30, 2021, Tier 1 leverage capital was 9.30%, Common Equity Tier 1 ratio was 11.14%, Tier 1 risk-based capital ratio was 12.07% and total risk-based capital ratio was 15.11%. 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 13.75% at June 30, 2021, as compared to 14.29% at December 31, 2020. The Company’s tangible capital ratio (non-GAAP) was 8.22% at June 30, 2021, as compared to 8.33% at December 31, 2020.

Results of Operations
Net interest income was $109.6 million for the second quarter of 2021, as compared to $109.6 million for the first quarter of 2021 and $105.8 million for the second quarter of 2020. Net interest income was $219.2 million for the first half of 2021, as compared to $212.4 million for the first half 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 Assets

Yield

Three Months Ended

Three Months Ended

June 30,

March 31,

June 30,

June 30,

March 31,

June 30,

2021

2021

2020

2021

2021

2020

Loans held for investment excluding PPP loans

70.41

%

73.49

%

76.31

%

4.10

%

4.22

%

4.45

%

PPP loans

4.49

7.38

6.78

6.46

4.40

2.73

Loans held for sale

3.30

3.04

2.67

3.12

2.96

3.51

Securities

13.02

10.27

10.14

1.73

2.08

2.71

Other

8.78

5.82

4.10

0.11

0.10

0.15

Total earning assets

100.00

%

100.00

%

100.00

%

3.51

%

3.74

%

3.95

%


Percentage of Total Average Earning Assets

Yield

Six Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2021

2020

2021

2020

Loans held for investment excluding PPP loans

71.91

%

79.71

%

4.16

%

4.69

%

PPP loans

5.90

3.55

5.20

2.73

Loans held for sale

3.17

2.78

3.05

3.54

Securities

11.68

10.61

1.88

2.81

Other

7.34

3.35

0.11

0.50

Total earning assets

100.00

%

100.00

%

3.62

%

4.25

%

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

Three Months Ended

June 30,

March 31,

June 30,

2021

2021

2020

Taxable equivalent net interest income

$

111,205

$

111,264

$

107,457

Average earning assets

$

13,989,264

$

13,358,677

$

12,776,644

Net interest margin

3.19

%

3.37

%

3.38

%

Taxable equivalent interest income on loans held for investment

$

110,785

$

113,072

$

113,727

Average loans held for investment

$

10,478,121

$

10,802,991

$

10,616,147

Loan yield

4.24

%

4.24

%

4.31

%


Six Months Ended

June 30,

June 30,

2021

2020

Taxable equivalent net interest income

$

222,469

$

215,773

Average earning assets

$

13,673,971

$

12,193,061

Net interest margin

3.28

%

3.56

%

Taxable equivalent interest income on loans

$

223,856

$

232,468

Average loans held for investment

$

10,640,556

$

10,151,716

Loan yield

4.24

%

4.61

%


PPP loans benefited net interest margin and loan yield by 15 basis points and 14 basis points, respectively, in the second quarter of 2021, and 12 basis points and 8 basis points, respectively, in the first half 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 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

June 30,

March 31,

June 30,

2021

2021

2020

Net interest income collected on problem loans

$

1,339

$

2,180

$

384

Accretable yield recognized on purchased loans(1)

2,638

3,088

4,700

Total impact to interest income

$

3,977

$

5,268

$

5,084

Impact to loan yield

0.15

%

0.20

%

0.19

%

Impact to net interest margin

0.11

%

0.16

%

0.16

%

(1) Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $1,224, $1,272 and $1,731 for the three months ended June 30, 2021, March 31, 2021, and June 30, 2020, respectively. This additional interest income increased loan yield by 5 basis points for each of the three months ended June 30, 2021 and March 31, 2021 and 6 basis points for the three months ended June 30, 2020, while increasing net interest margin by 4 basis points for each of the three months ended June 30, 2021 and March 31, 2021 and 5 basis points for the three months ended June 30, 2020.

Six Months Ended

June 30,

June 30,

2021

2020

Net interest income collected on problem loans

$

3,519

$

602

Accretable yield recognized on purchased loans(1)

5,726

10,169

Total impact to interest income

$

9,245

$

10,771

Impact to total loan yield

0.18

%

0.21

%

Impact to net interest margin

0.14

%

0.18

%

(1) Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $2,496 and $3,919 for the six months ended June 30, 2021 and June 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 6 basis points for the same periods, respectively.

For the second quarter of 2021, the cost of total deposits was 24 basis points, as compared to 27 basis points for the first quarter of 2021 and 49 basis points for the second quarter of 2020. The cost of total deposits was 26 basis points for the first six months of 2021, down from 60 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

June 30,

March 31,

June 30,

June 30,

March 31,

June 30,

2021

2021

2020

2021

2021

2020

Noninterest-bearing demand

31.88

%

30.20

%

27.80

%

%

%

%

Interest-bearing demand

45.59

46.18

41.64

0.27

0.27

0.43

Savings

7.24

6.90

6.04

0.08

0.08

0.09

Time deposits

11.68

12.94

16.44

0.88

1.02

1.62

Borrowed funds

3.61

3.78

8.08

3.11

3.21

1.73

Total deposits and borrowed funds

100.00

%

100.00

%

100.00

%

0.34

%

0.38

%

0.59

%


Percentage of Total Average Deposits and Borrowed Funds

Cost of Funds

Six Months Ending

Six Months Ending

June 30,

June 30,

June 30,

June 30,

2021

2020

2021

2020

Noninterest-bearing demand

31.06

%

25.62

%

%

%

Interest-bearing demand

45.88

42.89

0.27

0.59

Savings

7.07

6.07

0.08

0.12

Time deposits

12.30

17.64

0.95

1.66

Borrowed funds

3.69

7.78

3.16

2.06

Total deposits and borrowed funds

100.00

%

100.00

%

0.36

%

0.71

%

Noninterest income for the second quarter of 2021 was $47.6 million, as compared to $81.0 million for the first quarter of 2021 and $64.2 million for the second quarter of 2020, driven largely by the decline in mortgage banking income discussed below. Noninterest income for the first six months of 2021 was $128.6 million, as compared to $101.7 million for the same period in 2020.

In mortgage banking, the Company’s interest rate lock volume was $1.53 billion in the second quarter of 2021 and $3.26 billion for the first half of the year. Despite continued strong production, mortgage banking income decreased during the second quarter of 2021 as gain on sale margins compressed. The following tables present the components of mortgage banking income for the periods presented (in thousands):

Three Months Ended

June 30, 2021

March 31, 2021

June 30, 2020

Gain on sales of loans, net

$

17,581

$

33,901

$

46,560

Fees, net

4,519

4,902

5,309

Mortgage servicing loss, net

(1,247

)

(1,631

)

(1,428

)

MSR valuation adjustment

13,561

(4,951

)

Mortgage banking income, net

$

20,853

$

50,733

$

45,490


Six Months Ended

June 30, 2021

June 30, 2020

Gain on sales of loans, net

$

51,482

$

68,342

Fees, net

9,421

8,228

Mortgage servicing loss, net

(2,878

)

(1,023

)

MSR valuation adjustment

13,561

(14,522

)

Mortgage banking income, net

$

71,586

$

61,025

The decline in mortgage banking income during the second quarter of 2021 was partially offset by increases in many of the Company’s other fee income categories, including service charges on deposits, wealth management and insurance, as compared to the first quarter of 2021 and the second quarter of 2020.

Noninterest expense was $108.8 million for the second quarter of 2021, as compared to $115.9 million for the first quarter of 2021 and $118.3 million for the second quarter of 2020. Noninterest expense for the first six months of 2021 was $224.7 million, as compared to $233.3 million for the same period in 2020. The decrease quarter over quarter in 2021 is primarily related to a decrease in salaries and employee benefits, which was driven by a lower incentive compensation expense recognized during the quarter and cost savings realized from the voluntary early retirement program offered during the fourth quarter of 2020. In the second quarter of 2021, the Company received benefit from a one-time state tax credit investment. The $3.1 million investment was fully amortized in other noninterest expense, and the credit of $3.4 million reduced income taxes for the quarter.

Asset Quality Metrics
At June 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 June 30, 2021, approximately 0.2% 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, for the periods presented (in thousands):

June 30, 2021

December 31, 2020

Non Purchased

Purchased

Total

Non Purchased

Purchased

Total

Nonaccrual loans

$

27,101

$

27,690

$

54,791

$

20,369

$

31,051

$

51,420

Loans 90 days past due or more

800

945

1,745

3,783

267

4,050

Nonperforming loans

$

27,901

$

28,635

$

56,536

$

24,152

$

31,318

$

55,470

Other real estate owned

1,676

3,263

4,939

2,045

3,927

5,972

Nonperforming assets

$

29,577

$

31,898

$

61,475

$

26,197

$

35,245

$

61,442

Nonperforming loans/total loans

0.56

%

0.51

%

Nonperforming loans/total loans excluding PPP loans

0.57

%

0.57

%

Nonperforming assets/total assets

0.38

%

0.41

%

Nonperforming assets/total assets excluding PPP loans

0.39

%

0.45

%

Loans 30-89 days past due

$

11,295

$

3,782

$

15,077

$

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

0.15

%

0.27

%


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

June 30, 2021

December 31, 2020

Allowance for credit losses on loans

$

172,354

$

176,144

Allowance for credit losses on deferred interest

1,367

1,500

Reserve for unfunded commitments

20,535

20,535

Total allowance for credit losses

$

194,256

$

198,179

Allowance for credit losses on loans/total loans

1.70

%

1.61

%

Allowance for credit losses on loans/total loans excluding PPP loans

1.74

%

1.80

%

The Company did not record any provision for credit losses during the second quarter or first half of 2021, as compared to a $26.9 million provision for credit losses in the second quarter of 2020 and a $53.3 million provision in the first half of 2020. Net loan charge-offs for the second quarter of 2021 were $752 thousand, or 0.03% 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 304.85% as of June 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 Wednesday, July 28, 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=mSQQ3hVk. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2021 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 10158796 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 11, 2021.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 117-year-old financial services institution. Renasant has assets of approximately $16.0 billion and operates 199 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 and the adjusted efficiency ratio. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and/or certain charges (such as, when applicable, COVID-19 related expenses, restructuring charges, debt prepayment penalties, swap termination 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. 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. 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 and charges such as restructuring charges and COVID-19 related expenses 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.”

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.

Contacts:

For Media:

For Financials:

John Oxford

James C. Mabry IV

Senior Vice President

Executive Vice President

Director of Marketing

Chief Financial Officer

(662) 680-1219

(662) 680-1281

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q2 2021-

For The Six Months Ending

2021

2020

Q2 2020

June 30,

Second

First

Fourth

Third

Second

First

Percent

Percent

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2021

2020

Variance

Statement of earnings

Interest income - taxable equivalent basis

$

122,617

$

123,378

$

123,823

$

123,677

$

125,630

$

131,887

(2.40

)

%

$

245,995

$

257,517

(4.47

)

%

Interest income

$

120,991

$

121,762

$

121,926

$

122,078

$

123,955

$

130,173

(2.39

)

$

242,753

$

254,128

(4.48

)

Interest expense

11,412

12,114

13,799

15,792

18,173

23,571

(37.20

)

23,526

41,744

(43.64

)

Net interest income

109,579

109,648

108,127

106,286

105,782

106,602

3.59

219,227

212,384

3.22

Provision for credit losses

10,500

23,100

26,900

26,350

(100.00

)

53,250

(100.00

)

Net interest income after provision

109,579

109,648

97,627

83,186

78,882

80,252

38.92

219,227

159,134

37.76

Service charges on deposit accounts

9,458

8,023

7,938

7,486

6,832

9,070

38.44

17,481

15,902

9.93

Fees and commissions on loans and deposits

4,110

3,900

3,616

3,402

2,971

3,054

38.34

8,010

6,025

32.95

Insurance commissions and fees

2,422

2,237

2,193

2,681

2,125

1,991

13.98

4,659

4,116

13.19

Wealth management revenue

5,019

4,792

4,314

4,364

3,824

4,002

31.25

9,811

7,826

25.36

Securities gains (losses)

1,357

15

31

(100.00

)

1,357

31

4,277.42

Mortgage banking income

20,853

50,733

39,760

49,714

45,490

15,535

(54.16

)

71,586

61,025

17.31

Other

5,748

9,995

5,028

3,281

2,897

3,918

98.41

15,743

6,815

131.01

Total noninterest income

47,610

81,037

62,864

70,928

64,170

37,570

(25.81

)

128,647

101,740

26.45

Salaries and employee benefits

70,293

78,696

74,432

75,406

79,361

73,189

(11.43

)

148,989

152,550

(2.33

)

Data processing

5,652

5,451

5,373

5,259

5,047

5,006

11.99

11,103

10,053

10.44

Occupancy and equipment

11,374

12,538

13,153

13,296

13,511

14,120

(15.82

)

23,912

27,631

(13.46

)

Other real estate

104

41

683

1,033

620

418

(83.23

)

145

1,038

(86.03

)

Amortization of intangibles

1,539

1,598

1,659

1,733

1,834

1,895

(16.09

)

3,137

3,729

(15.88

)

Restructuring charges

15

292

7,365

307

Swap termination charges

2,040

Debt prepayment penalty

3

28

90

(100.00

)

90

(100.00

)

Other

19,800

17,319

17,444

19,755

17,822

20,413

11.10

37,119

38,235

(2.92

)

Total noninterest expense

108,777

115,935

122,152

116,510

118,285

115,041

(8.04

)

224,712

233,326

(3.69

)

Income before income taxes

48,412

74,750

38,339

37,604

24,767

2,781

95.47

123,162

27,548

347.08

Income taxes

7,545

16,842

6,818

7,612

4,637

773

62.71

24,387

5,410

350.78

Net income

$

40,867

$

57,908

$

31,521

$

29,992

$

20,130

$

2,008

103.02

$

98,775

$

22,138

346.18

Basic earnings per share

$

0.73

$

1.03

$

0.56

$

0.53

$

0.36

$

0.04

102.78

$

1.75

$

0.39

348.72

Diluted earnings per share

0.72

1.02

0.56

0.53

0.36

0.04

100.00

1.75

0.39

348.72

Average basic shares outstanding

56,325,717

56,240,201

56,197,847

56,185,884

56,165,452

56,534,816

0.29

56,240,201

56,350,134

(0.20

)

Average diluted shares outstanding

56,635,898

56,519,199

56,489,809

56,386,153

56,325,476

56,706,289

0.55

56,519,199

56,514,599

0.01

Common shares outstanding

56,350,878

56,294,346

56,200,487

56,193,705

56,181,962

56,141,018

0.30

56,350,878

56,181,962

0.30

Cash dividend per common share

$

0.22

$

0.22

$

0.22

$

0.22

$

0.22

$

0.22

$

0.44

$

0.44

Performance ratios

Return on avg shareholders’ equity

7.40

%

10.81

%

5.88

%

5.63

%

3.85

%

0.38

%

9.08

%

2.12

%

Return on avg tangible s/h’s equity (non-GAAP) (1)

13.54

%

19.93

%

11.26

%

10.87

%

7.72

%

1.20

%

16.66

%

4.49

%

Return on avg assets

1.04

%

1.54

%

0.84

%

0.80

%

0.55

%

0.06

%

1.28

%

0.32

%

Return on avg tangible assets (non-GAAP)(2)

1.14

%

1.69

%

0.94

%

0.89

%

0.63

%

0.11

%

1.40

%

0.39

%

Net interest margin (FTE)

3.19

%

3.37

%

3.35

%

3.29

%

3.38

%

3.75

%

3.28

%

3.56

%

Yield on earning assets (FTE)

3.51

%

3.74

%

3.77

%

3.77

%

3.95

%

4.57

%

3.62

%

4.25

%

Cost of funding

0.34

%

0.38

%

0.44

%

0.50

%

0.59

%

0.85

%

0.36

%

0.71

%

Average earning assets to average assets

88.37

%

87.86

%

87.66

%

87.31

%

86.88

%

86.17

%

88.12

%

86.54

%

Average loans to average deposits

81.13

%

87.78

%

91.83

%

93.31

%

93.35

%

93.83

%

84.37

%

93.58

%

Noninterest income (less securities gains/

losses) to average assets

1.21

%

2.13

%

1.68

%

1.89

%

1.75

%

1.12

%

1.65

%

1.45

%

Noninterest expense (less debt prepayment penalties)

to average assets

2.76

%

3.09

%

3.26

%

3.10

%

3.23

%

3.43

%

2.92

%

3.33

%

Net overhead ratio

1.55

%

0.96

%

1.58

%

1.21

%

1.48

%

2.31

%

1.27

%

1.88

%

Efficiency ratio (FTE)

68.49

%

60.29

%

70.65

%

65.16

%

68.92

%

78.86

%

64.00

%

73.49

%

Adjusted efficiency ratio (FTE) (non-GAAP) (4)

67.28

%

63.85

%

64.35

%

62.63

%

60.89

%

68.73

%

65.47

%

64.56

%

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q2 2021 -

As of

2021

2020

Q2 2020

June 30,

Second

First

Fourth

Third

Second

First

Percent

Percent

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2021

2020

Variance

Average Balances

Total assets

$

15,831,018

$

15,203,691

$

14,898,055

$

14,928,159

$

14,706,027

$

13,472,550

7.65

%

$

15,517,354

$

14,089,289

10.14

%

Earning assets

13,989,264

13,358,677

13,059,967

13,034,422

12,776,643

11,609,477

9.49

13,673,971

12,193,061

12.15

Securities

1,821,429

1,372,123

1,269,108

1,269,565

1,295,539

1,292,875

40.59

1,596,776

1,294,207

23.38

Loans held for sale

461,752

406,397

389,435

378,225

340,582

336,829

35.58

434,075

338,706

28.16

Loans, net of unearned income

10,478,121

10,802,991

11,019,505

11,041,684

10,616,147

9,687,285

(1.30

)

10,640,556

10,151,716

4.82

Intangibles

967,430

969,001

970,624

972,394

974,237

975,933

(0.70

)

968,215

975,085

(0.70

)

Noninterest-bearing deposits

4,271,464

3,862,422

3,808,595

3,723,059

3,439,634

2,586,963

24.18

4,066,943

3,013,298

34.97

Interest-bearing deposits

8,644,386

8,444,766

8,190,997

8,109,844

7,933,035

7,737,615

8.97

8,544,576

7,835,324

9.05

Total deposits

12,915,850

12,307,188

11,999,592

11,832,903

11,372,669

10,324,578

13.57

12,611,519

10,848,622

16.25

Borrowed funds

483,081

483,907

516,414

719,800

1,000,789

829,320

(51.73

)

483,494

915,054

(47.16

)

Shareholders' equity

2,213,743

2,172,425

2,132,375

2,119,500

2,101,092

2,105,143

5.36

2,193,084

2,103,118

4.28

Q2 2021 -

As of

2021

2020

Q4 2020

June 30,

Second

First

Fourth

Third

Second

First

Percent

Percent

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2021

2020

Variance

Balances at period end

Total assets

$

16,022,386

$

15,622,571

$

14,929,612

$

14,808,933

$

14,897,207

$

13,900,550

7.32

%

$

16,022,386

$

14,897,207

7.55

%

Earning assets

14,146,304

13,781,374

13,151,707

12,984,651

13,041,846

11,980,482

7.56

14,146,304

13,041,846

8.47

Securities

2,163,820

1,536,041

1,343,457

1,293,388

1,303,494

1,359,129

61.06

2,163,820

1,303,494

66.00

Loans held for sale

448,959

502,002

417,771

399,773

339,747

448,797

7.47

448,959

339,747

32.15

Non purchased loans

8,892,544

9,292,502

9,419,540

9,424,224

9,206,101

7,802,404

(5.59

)

8,892,544

9,206,101

(3.41

)

Purchased loans

1,256,698

1,395,906

1,514,107

1,660,514

1,791,203

1,966,973

(17.00

)

1,256,698

1,791,203

(29.84

)

Total loans

10,149,242

10,688,408

10,933,647

11,084,738

10,997,304

9,769,377

(7.17

)

10,149,242

10,997,304

(7.71

)

Intangibles

966,686

968,225

969,823

971,481

973,214

975,048

(0.32

)

966,686

973,214

(0.67

)

Noninterest-bearing deposits

4,349,135

4,135,360

3,685,048

3,758,242

3,740,296

2,642,059

18.02

4,349,135

3,740,296

16.28

Interest-bearing deposits

8,766,216

8,601,548

8,374,033

8,175,898

8,106,062

7,770,367

4.68

8,766,216

8,106,062

8.14

Total deposits

13,115,351

12,736,908

12,059,081

11,934,140

11,846,358

10,412,426

8.76

13,115,351

11,846,358

10.71

Borrowed funds

484,340

479,814

496,310

517,706

718,490

1,179,631

(2.41

)

484,340

718,490

(32.59

)

Shareholders’ equity

2,203,807

2,173,701

2,132,733

2,104,300

2,082,946

2,070,512

3.33

2,203,807

2,082,946

5.80

Market value per common share

40.00

41.38

33.68

22.72

24.90

21.84

18.76

40.00

24.90

60.64

Book value per common share

39.11

38.61

37.95

37.45

37.07

36.88

3.06

39.11

37.07

5.50

Tangible book value per common share (non-GAAP)

21.95

21.41

20.69

20.16

19.75

19.51

6.09

21.95

19.75

11.14

Shareholders’ equity to assets (actual)

13.75

%

13.91

%

14.29

%

14.21

%

13.98

%

14.91

%

13.75

%

13.98

%

Tangible capital ratio (non-GAAP)(3)

8.22

%

8.23

%

8.33

%

8.19

%

7.97

%

8.48

%

8.22

%

7.97

%

Leverage ratio

9.30

%

9.49

%

9.37

%

9.17

%

9.12

%

9.90

%

9.30

%

9.12

%

Common equity tier 1 capital ratio

11.14

%

11.05

%

10.93

%

10.80

%

10.69

%

10.63

%

11.14

%

10.69

%

Tier 1 risk-based capital ratio

12.07

%

12.00

%

11.91

%

11.79

%

11.69

%

11.63

%

12.07

%

11.69

%

Total risk-based capital ratio

15.11

%

15.09

%

15.07

%

14.89

%

13.72

%

13.44

%

15.11

%

13.72

%

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q2 2021 -

As of

2021

2020

Q4 2020

June 30,

Second

First

Fourth

Third

Second

First

Percent

Percent

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2021

2020

Variance

Non purchased loans

Commercial, financial, agricultural

$

1,262,977

$

1,244,580

$

1,231,768

$

1,137,322

$

1,134,965

$

1,144,004

2.53

%

$

1,262,977

$

1,134,965

11.28

%

SBA Paycheck Protection Program

246,931

860,864

1,128,703

1,307,972

1,281,278

(78.12

)

246,931

1,281,278

(80.73

)

Lease financing

74,003

75,256

75,862

82,928

80,779

84,679

(2.45

)

74,003

80,779

(8.39

)

Real estate - construction

1,038,613

933,586

827,152

738,873

756,872

745,066

25.56

1,038,613

756,872

37.22

Real estate - 1-4 family mortgages

2,435,574

2,380,920

2,356,564

2,369,292

2,342,987

2,356,627

3.35

2,435,574

2,342,987

3.95

Real estate - commercial mortgages

3,723,309

3,676,160

3,649,629

3,610,642

3,400,718

3,242,172

2.02

3,723,309

3,400,718

9.49

Installment loans to individuals

111,137

121,136

149,862

177,195

208,502

229,856

(25.84

)

111,137

208,502

(46.70

)

Loans, net of unearned income

$

8,892,544

$

9,292,502

$

9,419,540

$

9,424,224

$

9,206,101

$

7,802,404

(5.59

)

$

8,892,544

$

9,206,101

(3.41

)

Purchased loans

Commercial, financial, agricultural

$

124,725

$

143,843

$

176,513

$

202,768

$

225,355

$

280,572

(29.34

)

$

124,725

$

225,355

(44.65

)

Real estate - construction

12,746

22,332

30,952

34,246

34,236

42,829

(58.82

)

12,746

34,236

(62.77

)

Real estate - 1-4 family mortgages

266,517

305,141

341,744

391,102

445,526

489,674

(22.01

)

266,517

445,526

(40.18

)

Real estate - commercial mortgages

806,860

872,867

905,223

966,367

1,010,035

1,066,536

(10.87

)

806,860

1,010,035

(20.12

)

Installment loans to individuals

45,850

51,723

59,675

66,031

76,051

87,362

(23.17

)

45,850

76,051

(39.71

)

Loans, net of unearned income

$

1,256,698

$

1,395,906

$

1,514,107

$

1,660,514

$

1,791,203

$

1,966,973

(17.00

)

$

1,256,698

$

1,791,203

(29.84

)

Asset quality data

Non purchased assets

Nonaccrual loans

$

27,101

$

24,794

$

20,369

$

18,831

$

16,591

$

21,384

33.05

$

27,101

$

16,591

63.35

Loans 90 past due or more

800

2,235

3,783

1,826

3,993

4,459

(78.85

)

800

3,993

(79.96

)

Nonperforming loans

27,901

27,029

24,152

20,657

20,584

25,843

15.52

27,901

20,584

35.55

Other real estate owned

1,676

2,292

2,045

3,576

4,694

3,241

(18.04

)

1,676

4,694

(64.29

)

Nonperforming assets

$

29,577

$

29,321

$

26,197

$

24,233

$

25,278

$

29,084

12.90

$

29,577

$

25,278

17.01

Purchased assets

Nonaccrual loans

$

27,690

$

28,947

$

31,051

$

24,821

$

21,361

$

19,090

(10.82

)

$

27,690

$

21,361

29.63

Loans 90 past due or more

945

129

267

318

2,158

5,104

253.93

945

2,158

(56.21

)

Nonperforming loans

28,635

29,076

31,318

25,139

23,519

24,194

(8.57

)

28,635

23,519

21.75

Other real estate owned

3,263

3,679

3,927

4,576

4,431

5,430

(16.91

)

3,263

4,431

(26.36

)

Nonperforming assets

$

31,898

$

32,755

$

35,245

$

29,715

$

27,950

$

29,624

(9.50

)

$

31,898

$

27,950

14.13

Net loan charge-offs (recoveries)

$

752

$

3,038

$

954

$

389

$

1,698

$

811

(21.17

)

$

3,790

$

2,509

51.06

Allowance for credit losses on loans

$

172,354

$

173,106

$

176,144

$

168,098

$

145,387

$

120,185

(2.15

)

$

172,354

$

145,387

18.55

Annualized net loan charge-offs / average loans

0.03

%

0.11

0.03

%

0.01

%

0.06

%

0.03

%

0.07

%

0.05

%

Nonperforming loans / total loans*

0.56

%

0.52

0.51

%

0.41

%

0.40

%

0.51

%

0.56

%

0.40

%

Nonperforming assets / total assets*

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

%

1.62

1.61

%

1.52

%

1.32

%

1.23

%

1.70

%

1.32

%

Allowance for credit losses on loans / nonperforming loans*

304.85

%

308.54

317.55

%

367.05

%

329.65

%

240.19

%

304.85

%

329.65

%

Nonperforming loans / total loans**

0.31

%

0.29

0.26

%

0.22

%

0.22

%

0.33

%

0.31

%

0.22

%

Nonperforming assets / total assets**

0.18

%

0.19

0.18

%

0.16

%

0.17

%

0.21

%

0.18

%

0.17

%

Nonperforming loans / total loans***

0.57

%

0.57

0.57

%

0.47

%

0.45

%

0.51

%

0.57

%

0.45

%

Nonperforming assets / total assets***

0.39

%

0.42

0.45

%

0.40

%

0.39

%

0.42

%

0.39

%

0.39

%

Allowance for credit losses on loans / total loans***

1.74

%

1.76

1.80

%

1.72

%

1.50

%

1.23

%

1.74

%

1.50

%

*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 Six Months Ending

June 30, 2021

March 31, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Average

Interest

Yield/

Average

Interest

Yield/

Average

Interest

Yield/

Average

Interest

Yield/

Average

Interest

Yield/

Balance

Income/

Rate

Balance

Income/

Rate

Balance

Income/

Rate

Balance

Income/

Rate

Balance

Income/

Rate

Expense

Expense

Expense

Expense

Expense

Assets

Interest-earning assets:

Loans

Non purchased

$

8,521,028

$

82,774

3.90

%

$

8,362,793

$

81,928

3.97

%

$

7,872,371

$

81,836

4.18

%

$

8,441,910

$

164,702

3.93

%

$

7,763,516

$

170,390

4.41

%

Purchased

1,328,631

17,891

5.40

%

1,454,637

20,457

5.69

%

1,877,698

26,005

5.57

%

1,391,634

38,347

5.55

%

1,955,161

56,192

5.78

%

SBA Paycheck Protection Program

628,462

10,120

6.46

%

985,561

10,687

4.40

%

866,078

5,886

2.73

%

807,012

20,807

5.20

%

433,039

5,886

2.73

%

Total loans

10,478,121

110,785

4.24

%

10,802,991

113,072

4.24

%

10,616,147

113,727

4.31

%

10,640,556

223,856

4.24

%

10,151,716

232,468

4.61

%

Loans held for sale

461,752

3,604

3.12

%

406,397

2,999

2.96

%

340,582

2,976

3.51

%

434,075

6,604

3.05

%

338,706

5,964

3.54

%

Securities:

Taxable(1)

1,503,605

5,549

1.48

%

1,065,779

4,840

1.82

%

1,031,740

6,386

2.49

%

1,284,692

10,389

1.62

%

1,049,507

13,675

2.62

%

Tax-exempt

317,824

2,333

2.94

%

306,344

2,284

2.98

%

263,799

2,346

3.58

%

312,084

4,617

2.96

%

244,700

4,404

3.62

%

Total securities

1,821,429

7,882

1.73

%

1,372,123

7,124

2.08

%

1,295,539

8,732

2.71

%

1,596,776

15,006

1.88

%

1,294,207

18,079

2.81

%

Interest-bearing balances with banks

1,227,962

346

0.11

%

777,166

183

0.10

%

524,376

195

0.15

%

1,002,564

529

0.11

%

408,432

1,006

0.50

%

Total interest-earning assets

13,989,264

122,617

3.51

%

13,358,677

123,378

3.74

%

12,776,644

125,630

3.95

%

13,673,971

245,995

3.62

%

12,193,061

257,517

4.25

%

Cash and due from banks

195,982

205,830

214,079

200,906

200,198

Intangible assets

967,430

969,001

974,237

968,215

975,085

Other assets

678,342

670,183

741,067

674,262

720,945

Total assets

$

15,831,018

$

15,203,691

$

14,706,027

$

15,517,354

$

14,089,289

Liabilities and shareholders’ equity

Interest-bearing liabilities:

Deposits:

Interest-bearing demand(2)

$

6,109,956

$

4,069

0.27

%

$

5,906,230

$

3,932

0.27

%

$

5,151,713

$

5,524

0.43

%

$

6,008,093

$

8,002

0.27

%

$

5,045,735

$

14,777

0.59

%

Savings deposits

969,982

185

0.08

%

882,758

169

0.08

%

747,173

173

0.09

%

926,370

354

0.08

%

714,177

426

0.12

%

Time deposits

1,564,448

3,415

0.88

%

1,655,778

4,178

1.02

%

2,034,149

8,174

1.62

%

1,610,113

7,593

0.95

%

2,075,412

17,163

1.66

%

Total interest-bearing deposits

8,644,386

7,669

0.36

%

8,444,766

8,279

0.40

%

7,933,035

13,871

0.70

%

8,544,576

15,949

0.38

%

7,835,324

32,366

0.83

%

Borrowed funds

483,081

3,743

3.11

%

483,907

3,835

3.21

%

1,000,789

4,302

1.73

%

483,494

7,577

3.16

%

915,054

9,378

2.06

%

Total interest-bearing liabilities

9,127,467

11,412

0.50

%

8,928,673

12,114

0.55

%

8,933,824

18,173

0.82

%

9,028,070

23,526

0.53

%

8,750,378

41,744

0.96

%

Noninterest-bearing deposits

4,271,464

3,862,422

3,439,634

4,066,943

3,013,298

Other liabilities

218,344

240,171

231,477

229,257

222,495

Shareholders’ equity

2,213,743

2,172,425

2,101,092

2,193,084

2,103,118

Total liabilities and shareholders’ equity

$

15,831,018

$

15,203,691

$

14,706,027

$

15,517,354

$

14,089,289

Net interest income/ net interest margin

$

111,205

3.19

%

$

111,264

3.37

%

$

107,457

3.38

%

$

222,469

3.28

%

$

215,773

3.56

%

Cost of funding

0.34

%

0.38

%

0.59

%

0.36

%

0.71

%

Cost of total deposits

0.24

%

0.27

%

0.49

%

0.26

%

0.60

%

(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

Six Months Ended

2021

2020

June 30,

Second

First

Fourth

Third

Second

First

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

2021

2020

Net income (GAAP)

$

40,867

$

57,908

$

31,521

$

29,992

$

20,130

$

2,008

$

98,775

$

22,138

Amortization of intangibles

1,539

1,598

1,659

1,733

1,834

1,895

3,137

3,729

Tax effect of adjustment noted above (A)

(333

)

(361

)

(297

)

(374

)

(335

)

(527

)

(697

)

(690

)

Tangible net income (non-GAAP)

$

42,073

$

59,145

$

32,883

$

31,351

$

21,629

$

3,376

$

101,215

$

25,177

Net income (GAAP)

$

40,867

$

57,908

$

31,521

$

29,992

$

20,130

$

2,008

$

98,775

$

22,138

Debt prepayment penalties

3

28

90

90

MSR valuation adjustment

(13,561

)

(1,968

)

(828

)

4,951

9,571

(13,561

)

14,522

Restructuring charges

15

292

7,365

307

Swap termination charges

2,040

COVID-19 related expenses

370

785

613

570

6,257

2,903

1,155

9,160

Tax effect of adjustment noted above (A)

(83

)

2,820

(1,443

)

50

(2,065

)

(3,467

)

2,687

(4,398

)

Net income with exclusions (non-GAAP)

$

41,169

$

48,244

$

38,131

$

29,812

$

29,363

$

11,015

$

89,363

$

41,512

Average shareholders’ equity (GAAP)

$

2,213,743

$

2,172,425

$

2,132,375

$

2,119,500

$

2,101,092

$

2,105,143

$

2,193,084

$

2,103,118

Intangibles

967,430

969,001

970,624

972,394

974,237

975,933

968,215

975,085

Average tangible s/h’s equity (non-GAAP)

$

1,246,313

$

1,203,424

$

1,161,751

$

1,147,106

$

1,126,855

$

1,129,210

$

1,224,869

$

1,128,033

Average total assets (GAAP)

$

15,831,018

$

15,203,691

$

14,898,055

$

14,928,159

$

14,706,027

$

13,472,550

$

15,517,354

$

14,089,289

Intangibles

967,430

969,001

970,624

972,394

974,237

975,933

968,215

975,085

Average tangible assets (non-GAAP)

$

14,863,588

$

14,234,690

$

13,927,431

$

13,955,765

$

13,731,790

$

12,496,617

$

14,549,139

$

13,114,204

Actual shareholders’ equity (GAAP)

$

2,203,807

$

2,173,701

$

2,132,733

$

2,104,300

$

2,082,946

$

2,070,512

$

2,203,807

$

2,082,946

Intangibles

966,686

968,225

969,823

971,481

973,214

975,048

966,686

973,214

Actual tangible s/h’s equity (non-GAAP)

$

1,237,121

$

1,205,476

$

1,162,910

$

1,132,819

$

1,109,732

$

1,095,464

$

1,237,121

$

1,109,732

Actual total assets (GAAP)

$

16,022,386

$

15,622,571

$

14,929,612

$

14,808,933

$

14,897,207

$

13,900,550

$

16,022,386

$

14,897,207

Intangibles

966,686

968,225

969,823

971,481

973,214

975,048

966,686

973,214

Actual tangible assets (non-GAAP)

$

15,055,700

$

14,654,346

$

13,959,789

$

13,837,452

$

13,923,993

$

12,925,502

$

15,055,700

$

13,923,993

(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

Six Months Ended

2021

2020

June 30,

Second

First

Fourth

Third

Second

First

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

2021

2020

(1) Return on Average Equity

Return on avg s/h’s equity (GAAP)

7.40

%

10.81

%

5.88

%

5.63

%

3.85

%

0.38

%

9.08

%

2.12

%

Effect of adjustment for intangible assets

6.14

%

9.12

%

5.38

%

5.24

%

3.87

%

0.82

%

7.58

%

2.37

%

Return on avg tangible s/h’s equity (non-GAAP)

13.54

%

19.93

%

11.26

%

10.87

%

7.72

%

1.20

%

16.66

%

4.49

%

Return on avg s/h’s equity (GAAP)

7.40

%

10.81

%

5.88

%

5.63

%

3.85

%

0.38

%

9.08

%

2.12

%

Effect of exclusions from net income

0.06

%

(1.80

)

%

1.23

%

(0.03

)

%

1.77

%

1.72

%

(0.86

)

%

1.85

%

Return on avg s/h’s equity with excl. (non-GAAP)

7.46

%

9.01

%

7.11

%

5.60

%

5.62

%

2.10

%

8.22

%

3.97

%

Effect of adjustment for intangible assets

6.18

%

7.67

%

6.41

%

5.21

%

5.39

%

2.31

%

6.89

%

3.97

%

Return on avg tangible s/h’s equity with exclusions (non-GAAP)

13.64

%

16.68

%

13.52

%

10.81

%

11.01

%

4.41

%

15.11

%

7.94

%

(2) Return on Average Assets

Return on avg assets (GAAP)

1.04

%

1.54

%

0.84

%

0.80

%

0.55

%

0.06

%

1.28

%

0.32

%

Effect of adjustment for intangible assets

0.10

%

0.15

%

0.10

%

0.09

%

0.08

%

0.05

%

0.12

%

0.07

%

Return on avg tangible assets (non-GAAP)

1.14

%

1.69

%

0.94

%

0.89

%

0.63

%

0.11

%

1.40

%

0.39

%

Return on avg assets (GAAP)

1.04

%

1.54

%

0.84

%

0.80

%

0.55

%

0.06

%

1.28

%

0.32

%

Effect of exclusions from net income

%

(0.25

)

%

0.18

%

(0.01

)

%

0.25

%

0.27

%

(0.12

)

%

0.27

%

Return on avg assets with exclusions (non-GAAP)

1.04

%

1.29

%

1.02

%

0.79

%

0.80

%

0.33

%

1.16

%

0.59

%

Effect of adjustment for intangible assets

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)

1.14

%

1.41

%

1.13

%

0.89

%

0.90

%

0.40

%

1.27

%

0.68

%

(3) Shareholder Equity Ratio

Shareholders’ equity to actual assets (GAAP)

13.75

%

13.91

%

14.29

%

14.21

%

13.98

%

14.91

%

13.75

%

13.98

%

Effect of adjustment for intangible assets

5.53

%

5.68

%

5.96

%

6.02

%

6.01

%

6.43

%

5.53

%

6.01

%

Tangible capital ratio (non-GAAP)

8.22

%

8.23

%

8.33

%

8.19

%

7.97

%

8.48

%

8.22

%

7.97

%


RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Six Months Ended

2021

2020

June 30,

Second

First

Fourth

Third

Second

First

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

2021

2020

Interest income (FTE)

$

122,617

$

123,378

$

123,823

$

123,677

$

125,630

$

131,887

$

245,995

$

257,517

Interest expense

11,412

12,114

13,799

15,792

18,173

23,571

23,526

41,744

Net Interest income (FTE)

$

111,205

$

111,264

$

110,024

$

107,885

$

107,457

$

108,316

$

222,469

$

215,773

Total noninterest income

$

47,610

$

81,037

$

62,864

$

70,928

$

64,170

$

37,570

$

128,647

$

101,740

Securities gains (losses)

1,357

15

31

1,357

31

MSR valuation adjustment

13,561

1,968

828

(4,951

)

(9,571

)

13,561

(14,522

)

Total adjusted noninterest income

$

47,610

$

66,119

$

60,881

$

70,100

$

69,090

$

47,141

$

113,729

$

116,231

Total noninterest expense

$

108,777

$

115,935

$

122,152

$

116,510

$

118,285

$

115,041

$

224,712

$

233,326

Amortization of intangibles

1,539

1,598

1,659

1,733

1,834

1,895

3,137

3,729

Debt prepayment penalty

3

28

90

90

Restructuring charges

15

292

7,365

307

Swap termination charges

2,040

COVID-19 related expenses

370

785

613

570

6,257

2,903

1,155

9,160

Provision for unfunded commitments

500

2,700

2,600

3,400

6,000

Total adjusted noninterest expense

$

106,853

$

113,260

$

109,972

$

111,479

$

107,504

$

106,843

$

220,113

$

214,347

Efficiency Ratio (GAAP)

68.49

%

60.29

%

70.65

%

65.16

%

68.92

%

78.86

%

64.00

%

73.49

%

(4) Adjusted Efficiency Ratio (non-GAAP)

67.28

%

63.85

%

64.35

%

62.63

%

60.89

%

68.73

%

65.47

%

64.56

%


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