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Renasant Corporation Announces Earnings for the Fourth Quarter of 2020

/EIN News/ -- TUPELO, Miss., Jan. 26, 2021 (GLOBE NEWSWIRE) -- Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the fourth quarter of 2020. Net income for the fourth quarter of 2020 was $31.5 million, as compared to $38.4 million for the fourth quarter of 2019. Basic and diluted earnings per share (“EPS”) were $0.56 for the fourth quarter of 2020, as compared to basic and diluted EPS of $0.67 for the fourth quarter of 2019.

Net income for the year ended December 31, 2020, was $83.7 million, as compared to net income of $167.6 million for the same period in 2019. Basic and diluted EPS were $1.49 and $1.48, respectively, for 2020, as compared to basic and diluted EPS of $2.89 and $2.88, respectively, for 2019.

“Our fourth quarter results highlight a strong finish to a year that presented many challenges,” commented C. Mitchell Waycaster, Renasant President and Chief Executive Officer. “Renasant’s strategy is to be ‘One Team going to market as One Bank,’ and our team, while facing trying circumstances, flawlessly executed on that strategy in 2020 by providing customers across our footprint with the excellent service to which they are accustomed. We believe that we are in a great position moving into 2021 with an excellent team and diverse product line. Looking forward, we intend to continue to emphasize the importance of core funding, asset quality and strong capital, while building core earnings.”

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 fourth quarter of 2020 and the same period in 2019 and for the year ended December 31, 2020 and the same period in 2019. The “COVID-19 related expenses” line item in the table below 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. The “restructuring charges” and “swap termination charges” line items in the table below are discussed in more detail later in this release.

(in thousands, except per share data) Three Months Ended   Twelve Months Ended
  December 31, 2020   December 31, 2020
  Pre-tax After-tax Impact to Diluted EPS   Pre-tax After-tax Impact to Diluted EPS
Earnings, as reported $ 38,339   $ 31,521   $ 0.56     $ 103,491   $ 83,651   $ 1.48  
Debt prepayment penalty 3   2       121   97    
MSR valuation adjustment (1,968 ) (1,615 ) (0.03 )   11,726   9,450   0.17  
Restructuring charges 7,365   6,045   0.11     7,365   5,936   0.11  
Swap termination charges 2,040   1,675   0.03     2,040   1,644   0.03  
COVID-19 related expenses 613   503   0.01     10,343   8,336   0.14  
Earnings, with exclusions (Non-GAAP) $ 46,392   $ 38,131   $ 0.68     $ 135,086   $ 109,114   $ 1.93  
               
  Three Months Ended   Twelve Months Ended
  December 31, 2019   December 31, 2019
  Pre-tax After-tax Impact to Diluted EPS   Pre-tax After-tax Impact to Diluted EPS
Earnings, as reported $ 47,839   $ 38,415   $ 0.67     $ 215,687   $ 167,596   $ 2.88  
Merger and conversion expenses 76   61       279   216    
Debt prepayment penalty         54   41    
MSR valuation adjustment (1,296 ) (1,040 ) (0.01 )   1,836   1,427   0.03  
Earnings, with exclusions (Non-GAAP) $ 46,619   $ 37,436   $ 0.66     $ 217,856   $ 169,280   $ 2.91  


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, merger and conversion expenses, 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
  December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 September 30, 2020 December 31, 2019
Return on average assets 0.84  % 0.80  % 1.16  % 1.02  % 0.79  % 1.13  %
Return on average tangible assets (Non-GAAP) 0.94  % 0.89  % 1.30  % 1.13  % 0.89  % 1.27  %
Return on average equity 5.88  % 5.63  % 7.15  % 7.11  % 5.60  % 6.97  %
Return on average tangible equity (Non-GAAP) 11.26  % 10.87  % 13.75  % 13.52  % 10.81  % 13.41  %

        

  As Reported With Exclusions
(Non-GAAP)
  Twelve Months Ended Twelve Months Ended
  December 31, 2020   December 31, 2019 December 31, 2020   December 31, 2019
Return on average assets 0.58  %   1.30  % 0.75  %   1.31  %
Return on average tangible assets (Non-GAAP) 0.66  %   1.46  % 0.85  %   1.48  %
Return on average equity 3.96  %   7.95  % 5.16  %   8.03  %
Return on average tangible equity (Non-GAAP) 7.83  %   15.36  % 10.06  %   15.51  %

Financial Condition
Total assets were $14.93 billion at December 31, 2020, as compared to $13.40 billion at December 31, 2019. Total loans held for investment were $10.93 billion at December 31, 2020, as compared to $9.69 billion at December 31, 2019. Loans held for investment at December 31, 2020 included $1.13 billion in Paycheck Protection Program (“PPP”) loans.

Total deposits increased to $12.06 billion at December 31, 2020, from $10.21 billion at December 31, 2019. Non-interest bearing deposits increased $1.13 billion to $3.69 billion, or 30.56% of total deposits, at December 31, 2020, as compared to $2.55 billion, or 24.99% of total deposits, at December 31, 2019. The growth in non-interest bearing deposits during the year was primarily driven by PPP lending, other government stimulus and client sentiment to maintain liquidity.

Continued Focus on Prudent Capital Management
The Company continues to prioritize maintaining a strong capital position. The Company has a $50.0 million stock repurchase plan that will remain in effect through October 2021.

At December 31, 2020, Tier 1 leverage capital was 9.37%, Common Equity Tier 1 ratio was 10.93%, Tier 1 risk-based capital ratio was 11.91% and total risk-based capital ratio was 15.07%. All regulatory ratios exceed the minimums required to be “well-capitalized.”

The Company’s ratio of shareholders’ equity to assets was 14.28% at December 31, 2020, as compared to 15.86% at December 31, 2019. The Company’s tangible capital ratio (non-GAAP) was 8.33% at December 31, 2020, as compared to 9.25% at December 31, 2019.

The PPP loans held on the Company’s balance sheet at December 31, 2020, negatively impacted the Company’s tangible capital ratio by 73 basis points and its leverage ratio by 92 basis points.

Results of Operations
Net interest income was $108.1 million for the fourth quarter of 2020, as compared to $106.3 million for the third quarter of 2020 and $108.9 million for the fourth quarter of 2019. Net interest income was $426.8 million for 2020, as compared to $443.7 million for 2019.

Net interest margin was 3.35% for the fourth quarter of 2020, as compared to 3.29% for the third quarter of 2020 and 3.90% for the fourth quarter of 2019. Net interest margin was 3.44% for all of 2020, as compared to 4.08% for 2019. While pressures on loans yields continued in the quarter, the impact was somewhat offset by lower deposit costs. 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
  December 31, September 30, December 31, December 31, September 30, December 31,
  2020 2020 2019 2020 2020 2019
Loans held for investment excluding PPP loans 74.79  % 74.70  % 83.87  % 4.20  % 4.30  % 5.11  %
PPP loans 9.59    10.01    —    3.26    2.27    —   
Loans held for sale 2.98    2.90    3.11    3.15    3.31    3.58   
Securities 9.72    9.74    10.95    2.25    2.41    2.92   
Other 2.92    2.65    2.07    0.10    0.10    1.89   
Total earning assets 100.00  % 100.00  % 100.00  % 3.77  % 3.77  % 4.75  %


  Percentage of Total Average Earning Assets Yield
  Twelve Months Ended Twelve Months Ended
  December 31, December 31, December 31, December 31,
  2020 2019 2020 2019
Loans held for investment excluding PPP loans 77.13  % 83.15  % 4.47  % 5.31  %
PPP loans 6.80    —    2.75    —   
Loans held for sale 2.86    3.25    3.37    5.07   
Securities 10.15    11.28    2.57    3.02   
Other 3.06    2.32    0.31    2.30   
Total earning assets 100.00  % 100.00  % 4.00  % 4.98  %

The following tables present reported taxable equivalent net interest margin and yield on loans, including loans held for sale, for the periods presented (in thousands).

  Three Months Ended
  December 31, September 30, December 31,
  2020 2020 2019
Taxable equivalent net interest income $ 110,024    $ 107,885    $ 110,856   
Average earning assets $ 13,059,967    $ 13,034,422    $ 11,277,000   
Net interest margin 3.35  % 3.29  % 3.90  %
       
Taxable equivalent interest income on loans $ 116,540    $ 115,908    $ 124,919   
Average loans, including loans held for sale $ 11,408,940    $ 11,419,909    $ 9,808,441   
Loan yield 4.06  % 4.04  % 5.05  %


  Twelve Months Ended
  December 31, December 31,
  2020 2019
Taxable equivalent net interest income $ 433,682    $ 449,986   
Average earning assets $ 12,622,461    $ 11,028,040   
Net interest margin 3.44  % 4.08  %
     
Taxable equivalent interest income on loans $ 470,877    $ 505,411   
Average loans, including loans held for sale $ 10,954,947    $ 9,527,290   
Loan yield 4.30  % 5.30  %

PPP loans reduced net interest margin and loan yield by 1 basis point and 10 basis points, respectively, in the fourth quarter of 2020 and 5 basis points and 13 basis points, respectively, for all of 2020.

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

       
  Three Months Ended
  December 31, September 30, December 31,
  2020 2020 2019
Net interest income collected on problem loans $ 128    $ 282    $ 152   
Accretable yield recognized on purchased loans(1) 4,130    4,949    6,661   
Total impact to interest income $ 4,258    $ 5,231    $ 6,813   
       
Impact to total loan yield 0.15  % 0.18  % 0.28  %
       
Impact to net interest margin 0.13  % 0.16  % 0.24  %

(1) Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $1,872, $2,286 and $4,041 for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019, respectively. This additional interest income increased total loan yield by 7 basis points, 8 basis points and 16 basis points for the same periods, respectively, while increasing net interest margin by 6 basis points, 7 basis points and 14 basis points for the same periods, respectively.

     
  Twelve Months Ended
  December 31, December 31,
  2020 2019
Net interest income collected on problem loans $ 1,011    $ 4,042   
Accretable yield recognized on purchased loans(1) 19,248    27,227   
Total impact to interest income $ 20,259    $ 31,269   
     
Impact to total loan yield 0.18  % 0.33  %
     
Impact to net interest margin 0.16  % 0.28  %

(1) Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $8,077 and $14,635 for the twelve months ended December 31, 2020 and 2019, respectively. This additional interest income increased total loan yield by 7 basis points and 15 basis points for the same periods, respectively, while increasing net interest margin by 6 basis points and 13 basis points for the same periods, respectively.

For the fourth quarter of 2020, the cost of total deposits was 33 basis points, as compared to 40 basis points for the third quarter of 2020 and 76 basis points for the fourth quarter of 2019. The cost of total deposits was 47 basis points for the year ended December 31, 2020, as compared to 81 basis points for same period in 2019. 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
  December 31,   September 30,   December 31,   December 31,   September 30,   December 31,
  2020   2020   2019   2020   2020   2019
Noninterest-bearing demand 30.43  %   29.66  %   24.12  %   —  %   —  %   —  %
Interest-bearing demand 44.81      43.06      43.86      0.31      0.36      0.81   
Savings 6.63      6.35      6.11      0.08      0.08      0.17   
Time deposits 14.00      15.20      20.41      1.20      1.42      1.76   
Borrowed funds 4.13      5.73      5.50      3.05      2.20      3.02   
Total deposits and borrowed funds 100.00  %   100.00  %   100.00  %   0.44  %   0.50  %   0.89  %


               
  Percentage of Total Average Deposits and Borrowed Funds   Cost of Funds
  Twelve Months Ending   Twelve Months Ending
  December 31,   December 31,   December 31,   December 31,
  2020   2019   2020   2019
Noninterest-bearing demand 27.91  %   23.26  %   —  %   —  %
Interest-bearing demand 43.43      44.89      0.45      0.86   
Savings 6.29      6.11      0.10      0.19   
Time deposits 16.07      21.91      1.50      1.71   
Borrowed funds 6.30      3.83      2.26      4.17   
Total deposits and borrowed funds 100.00  %   100.00  %   0.59  %   0.93  %

Noninterest income for the fourth quarter of 2020 was $62.9 million, as compared to $70.9 million for the third quarter of 2020 and $37.5 million for the fourth quarter of 2019. Noninterest income for 2020 was $235.5 million, as compared to $153.3 million for 2019. Despite the decrease in mortgage banking income on a linked quarter basis, it continued to be a strong source of noninterest income for the Company with mortgage production of approximately $1.43 billion for the fourth quarter of 2020 and approximately $6.75 billion for the year. The following tables present the components of mortgage banking income for the periods presented (in thousands):

  Three Months Ended
  December 31, 2020 September 30, 2020 December 31, 2019
Gain on sales of loans, net $ 36,080   $ 45,985   $ 10,438  
Fees, net 5,318   5,367   3,023  
Mortgage servicing income, net (3,606 ) (2,466 ) 408  
MSR valuation adjustment 1,968   828   1,296  
Mortgage banking income, net $ 39,760   $ 49,714   $ 15,165  


  Twelve Months Ended
  December 31, 2020 December 31, 2019
Gain on sales of loans, net $ 150,406   $ 45,854  
Fees, net 18,914   11,385  
Mortgage servicing income, net (7,095 ) 2,493  
MSR valuation adjustment (11,726 ) (1,836 )
Mortgage banking income, net $ 150,499   $ 57,896  

Noninterest expense was $122.2 million for the fourth quarter of 2020, as compared to $116.5 million for the third quarter of 2020 and $95.6 million for the fourth quarter of 2019. Noninterest expense was $472.0 million for 2020, as compared to $374.2 million for 2019. As part of the continued focus on efficiency, in the fourth quarter the Company initiated a system-wide branch evaluation effort and offered an early retirement incentive to a select group of employees, participation in which was voluntary. The Company incurred $7.4 million in restructuring charges during the quarter, primarily attributable to the voluntary early retirement program, and these efforts are expected to allow for a more efficient use of the Company’s workforce and branch network moving into 2021. The Company also incurred $2.0 million in swap termination charges that will reduce interest expense over the remaining terms of two swaps, which were originally scheduled to mature in June 2022 and 2023. The Company recorded a $500 thousand provision for unfunded commitments in other noninterest expense in the fourth quarter of 2020, as compared to a $2.7 million provision for unfunded commitments in the third quarter of 2020, bringing the total provision for unfunded commitments to $9.2 million for 2020.

Asset Quality Metrics
At December 31, 2020, the Company’s credit quality metrics remained strong. The Company has maintained contact with its borrowers and continues to focus on those industries more highly impacted by the pandemic, primarily the hospitality and healthcare industries. To provide necessary relief to the Company’s borrowers – both consumer and commercial clients – the Company established loan deferral programs at the onset of the pandemic, which allowed qualified clients to defer principal and interest payments. The Company continues to monitor loans remaining on deferral, and as of December 31, 2020, approximately 1.5% of the Company’s loan portfolio (excluding PPP loans) was in deferral, down from approximately 5.1% as of September 30, 2020.

The Company’s credit quality in future quarters may be impacted by both external and internal factors related to the pandemic in addition to those factors that traditionally affect credit quality. External factors outside the Company’s control include items such as the pace at which the COVID-19 vaccine is administered to residents in the Company’s markets and the United States generally, federal, state and local government measures, the re-imposition of “shelter-in-place” orders, and the economic impact of government programs, including additional fiscal stimulus and the re-opening of the Paycheck Protection Program. Internal factors that will potentially impact credit quality include items such as the Company’s loan deferral programs, involvement in government offered programs and the related financial impact of these programs. The impact of each of these items are unknown at this time and could materially and adversely impact future credit quality.

The table below shows nonperforming assets, which includes 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) for the periods presented (in thousands).

  December 31, 2020 December 31, 2019
  Non Purchased Purchased Total Non Purchased Purchased Total
Nonaccrual loans $ 20,369   $ 31,051   $ 51,420   $ 21,509   $ 7,038   $ 28,547  
Loans 90 days past due or more 3,783   267   4,050   3,458   4,317   7,775  
Nonperforming loans $ 24,152   $ 31,318   $ 55,470   $ 24,967   $ 11,355   $ 36,322  
Other real estate owned 2,045   3,927   5,972   2,762   5,248   8,010  
Nonperforming assets $ 26,197   $ 35,245   $ 61,442   $ 27,729   $ 16,603   $ 44,332  
Nonperforming loans/total loans     0.51 %     0.37 %
Nonperforming loans/total loans excluding PPP loans     0.57 %      
Nonperforming assets/total assets     0.41 %     0.33 %
Nonperforming assets/total assets excluding PPP loans     0.45 %      
Loans 30-89 days past due $ 17,635   $ 8,651   $ 26,286   $ 22,781   $ 14,887   $ 37,668  
Loans 30-89 days past due/total loans     0.24 %     0.39 %

The implementation of CECL on January 1, 2020, which required purchased credit deteriorated loans to be classified as nonaccrual based on performance, contributed approximately $3.3 million as of December 31, 2020 to the increase in purchased nonaccrual loans.

The table below shows the increase in the allowance for credit losses and the reserve for unfunded commitments since the day one transition to CECL on January 1, 2020 to the ending allowance at December 31, 2020 (in thousands).

  January 1, 2020 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020
Allowance for credit losses on loans $ 94,647    $ 120,185    $ 145,387    $ 168,098    $ 176,144   
Allowance for credit losses on deferred interest —    —    —    —    1,500   
Reserve for unfunded commitments 11,336    14,735    17,335    20,035    20,535   
Total reserves $ 105,983    $ 134,920    $ 162,722    $ 188,133    $ 198,179   
Allowance for credit losses on loans/total loans 0.98  % 1.23  % 1.32  % 1.52  % 1.61  %
Allowance for credit losses on loans/total loans excluding PPP loans —    —    1.50  % 1.72  % 1.80  %
Reserve for unfunded commitments/total unfunded commitments 0.47  % 0.60  % 0.66  % 0.73  % 0.73  %

The Company recorded a provision for credit losses of $10.5 million ($1.5 million of which was allocated to deferred interest) and a reserve for unfunded commitments, which is recorded in other noninterest expense (and discussed above), of $500 thousand for the fourth quarter of 2020. Net loan charge-offs were $954 thousand, or 0.03% of average loans held for investment on an annualized basis. Although there was a meaningful decrease in credit costs during the quarter, the allowance for credit losses on loans remains elevated due to qualitative factors related to the uncertainty concerning the COVID-19 pandemic, with limited GDP growth (in relation to pre-pandemic levels) and elevated unemployment rates projected into 2021 and 2022. Even though economic projections continue to trend in a positive direction, there remains considerable uncertainty.

The provision for credit losses recorded during the fourth quarter of 2019 was $3.0 million with net charge-offs of $1.6 million, or 0.07% of average loans held for sale on an annualized basis. The Company’s coverage ratio, or the allowance for credit losses to nonperforming loans, was 317.55% as of December 31, 2020, as compared to 367.05% as of September 30, 2020 and 143.61% as of December 31, 2019.

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, January 27, 2021.

The webcast can be accessed through Renasant’s investor relations website at investors.renasant.com or https://services.choruscall.com/links/rnst210127.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2020 Fourth 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 investors.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 10151152 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 10, 2021.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 116-year-old financial services institution. Renasant has assets of approximately $14.9 billion and operates more than 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.

Currently, the most important factor that could cause the Company’s actual results to differ materially from those in forward-looking statements is the continued impact of the COVID-19 pandemic and related governmental measures to respond to the pandemic on the United States economy and the economies of the markets in which the Company operates and its participation in government programs related to the pandemic. In this press release, the Company has addressed the historical impact of the pandemic on the operations of the Company and set forth certain expectations regarding the COVID-19 pandemic’s future impact on the Company’s business, financial condition, results of operations, liquidity, asset quality, capital, cash flows and prospects. The Company believes that its statements regarding future events and conditions in light of the COVID-19 pandemic are reasonable, but these statements are based on assumptions regarding, among other things, how long the pandemic will continue, the pace at which the COVID-19 vaccine can be distributed and administered to residents of the markets the Company serves and the United States generally, the duration, extent and effectiveness of the governmental measures implemented to contain the pandemic and ameliorate its impact on businesses and individuals throughout the United States, and the impact of the pandemic and the government’s virus containment measures on national and local economies, all of which are out of the Company’s control. If the Company’s assumptions underlying its statements about future events prove to be incorrect, the Company’s business, financial condition, results of operations, liquidity, asset quality, capital, cash flows and prospects may be materially different from what is presented in the Company’s forward-looking statements.

Important factors other than the COVID-19 pandemic currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: (i) the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses, grow the acquired operations and realize the cost savings expected from an acquisition to the extent and in the timeframe anticipated by management; (ii) the effect of economic conditions and interest rates on a national, regional or international basis; (iii) timing and success of the implementation of changes in operations to achieve enhanced earnings or effect cost savings; (iv) competitive pressures in the consumer finance, commercial finance, insurance, financial services, asset management, retail banking, mortgage lending and auto lending industries; (v) the financial resources of, and products available from, competitors; (vi) changes in laws and regulations as well as changes in accounting standards, such as the adoption of the CECL model as of January 1, 2020; (vii) changes in policy by regulatory agencies; (viii) changes in the securities and foreign exchange markets; (ix) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (x) changes in the quality or composition of the Company’s loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers; (xi) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xii) general economic, market or business conditions, including the impact of inflation; (xiii) changes in demand for loan products and financial services; (xiv) concentration of credit exposure; (xv) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xvi) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xvii) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area; (xviii) the impact, extent and timing of technological changes; and (xix) other circumstances, many of which are beyond management’s control. The COVID-19 pandemic has exacerbated, and is likely to continue to exacerbate, the impact of any of these factors on the Company.  

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 investors.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, merger and conversion expenses, 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 merger and conversion expenses, 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 table 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
  joxford@renasant.com jim.mabry@renasant.com


RENASANT CORPORATION                                                  
(Unaudited)                                                  
(Dollars in thousands, except per share data)                                
                                          Q4 2020-   Twelve Months Ended
          2020   2019   Q4 2019   December 31,
          Fourth   Third   Second   First   Fourth   Third   Second   First   Percent           Percent
    Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Variance   2020   2019   Variance
Statement of earnings                                                
Interest income - taxable equivalent basis   $ 123,823     $ 123,677     $ 125,630     $ 131,887     $ 135,119     $ 135,927     $ 139,285     $ 138,578     (8.36 ) %   $ 505,017     $ 548,909     (8.00 ) %
Interest income   $ 121,926     $ 122,078     $ 123,955     $ 130,173     $ 133,148     $ 134,476     $ 137,862     $ 137,094     (8.43 )     $ 498,132     $ 542,580     (8.19 )  
Interest expense   13,799     15,792     18,173     23,571     24,263     25,651     25,062     23,947     (43.13 )     71,335     98,923     (27.89 )  
  Net interest income   108,127     106,286     105,782     106,602     108,885     108,825     112,800     113,147     (0.70 )     426,797     443,657     (3.80 )  
Provision for credit losses   10,500     23,100     26,900     26,350     2,950     1,700     900     1,500     255.93       86,850     7,050     1,131.91    
  Net interest income after provision   97,627     83,186     78,882     80,252     105,935     107,125     111,900     111,647     (7.84 )     339,947     436,607     (22.14 )  
Service charges on deposit accounts   7,938     7,486     6,832     9,070     9,273     8,992     8,605     9,102     (14.40 )     31,326     35,972     (12.92 )  
Fees and commissions on loans and deposits   3,616     3,402     2,971     3,054     2,822     3,090     7,047     6,471     28.14       13,043     19,430     (32.87 )  
Insurance commissions and fees   2,193     2,681     2,125     1,991     2,105     2,508     2,190     2,116     4.18       8,990     8,919     0.80    
Wealth management revenue   4,314     4,364     3,824     4,002     3,920     3,588     3,601     3,324     10.05       16,504     14,433     14.35    
Securities gains (losses)   15         31             343     -8     13           46     348     (86.78 )  
Mortgage banking income   39,760     49,714     45,490     15,535     15,165     15,710     16,620     10,401     162.18       150,499     57,896     159.95    
Other   5,028     3,281     2,897     3,918     4,171     3,722     3,905     4,458     20.55       15,124     16,256     (6.96 )  
  Total noninterest income   62,864     70,928     64,170     37,570     37,456     37,953     41,960     35,885     67.83       235,532     153,254     53.69    
Salaries and employee benefits   74,432     75,406     79,361     73,189     67,684     65,425     60,325     57,350     9.97       302,388     250,784     20.58    
Data processing   5,373     5,259     5,047     5,006     5,095     4,980     4,698     4,906     5.46       20,685     19,679     5.11    
Occupancy and equipment   13,153     13,296     13,511     14,120     13,231     12,943     11,544     11,835     (0.59 )     54,080     49,553     9.14    
Other real estate   683     1,033     620     418     339     418     252     1,004     101.47       2,754     2,013     36.81    
Amortization of intangibles   1,659     1,733     1,834     1,895     1,946     1,996     2,053     2,110     (14.75 )     7,121     8,105     (12.14 )  
Merger and conversion related expenses                   76     24     179         (100.00 )         279     (100.00 )  
Restructuring charges   7,365                                       7,365            
Swap termination charges   2,040                                       2,040            
Debt prepayment penalty   3     28     90             54                   121     54     124.07    
Other   17,444     19,755     17,822     20,413     7,181     10,660     14,239     11,627     142.92       75,434     43,707     72.59    
  Total noninterest expense   122,152     116,510     118,285     115,041     95,552     96,500     93,290     88,832     27.84       471,988     374,174     26.14    
Income before income taxes   38,339     37,604     24,767     2,781     47,839     48,578     60,570     58,700     (19.86 )     103,491     215,687     (52.02 )  
Income taxes   6,818     7,612     4,637     773     9,424     11,132     13,945     13,590     (27.65 )     19,840     48,091     (58.74 )  
  Net income   $ 31,521     $ 29,992     $ 20,130     $ 2,008     $ 38,415     $ 37,446     $ 46,625     $ 45,110     (17.95 )     $ 83,651     $ 167,596     (50.09 )  
Basic earnings per share   $ 0.56     $ 0.53     $ 0.36     $ 0.04     $ 0.67     $ 0.65     $ 0.80     $ 0.77     (16.42 )     $ 1.49     $ 2.89     (48.44 )  
Diluted earnings per share   0.56     0.53     0.36     0.04     0.67     0.64     0.80     0.77     (16.42 )     1.48     2.88     (48.61 )  
Average basic shares outstanding   56,197,847     56,185,884     56,165,452     56,534,816     57,153,160     58,003,215     58,461,024     58,585,517     (1.67 )     56,270,566     58,046,716     (3.06 )  
Average diluted shares outstanding   56,489,809     56,386,153     56,325,476     56,706,289     57,391,876     58,192,419     58,618,976     58,730,535     (1.57 )     56,468,165     58,226,686     (3.02 )  
Common shares outstanding   56,200,487     56,193,705     56,181,962     56,141,018     56,855,002     57,455,306     58,297,670     58,633,630     (1.15 )     56,200,487     56,855,002     (1.15 )  
Cash dividend per common share   $ 0.22     $ 0.22     $ 0.22     $ 0.22     $ 0.22     $ 0.22     $ 0.22     $ 0.21           $ 0.88     $ 0.87     1.15    
Performance ratios                                                
Return on avg shareholders’ equity   5.88 %   5.63 %   3.85 %   0.38 %   7.15 %   6.97 %   8.90 %   8.86 %       3.96 %   7.95 %    
Return on avg tangible s/h’s equity (non-GAAP) (1)   11.26 %   10.87 %   7.72 %   1.20 %   13.75 %   13.38 %   17.15 %   17.41 %       7.83 %   15.36 %    
Return on avg assets   0.84 %   0.80 %   0.55 %   0.06 %   1.16 %   1.16 %   1.47 %   1.44 %       0.58 %   1.30 %    
Return on avg tangible assets (non-GAAP)(2)   0.94 %   0.89 %   0.63 %   0.11 %   1.30 %   1.30 %   1.64 %   1.61 %       0.66 %   1.46 %    
Net interest margin (FTE)   3.35 %   3.29 %   3.38 %   3.75 %   3.90 %   3.98 %   4.19 %   4.27 %       3.44 %   4.08 %    
Yield on earning assets (FTE)   3.77 %   3.77 %   3.95 %   4.57 %   4.75 %   4.91 %   5.11 %   5.16 %       4.00 %   4.98 %    
Cost of funding   0.44 %   0.50 %   0.59 %   0.85 %   0.89 %   0.97 %   0.96 %   0.92 %       0.59 %   0.93 %    
Average earning assets to average assets   87.66 %   87.31 %   86.88 %   86.17 %   85.71 %   85.58 %   85.72 %   85.58 %       87.03 %   85.65 %    
Average loans to average deposits   91.83 %   93.31 %   93.35 %   93.83 %   92.43 %   89.13 %   89.13 %   89.33 %       93.05 %   90.01 %    
Noninterest income (less securities gains/                                                
losses) to average assets   1.68 %   1.89 %   1.75 %   1.12 %   1.13 %   1.16 %   1.32 %   1.14 %       1.62 %   1.19 %    
Noninterest expense (less debt prepayment penalties/                                                
/merger-related expenses) to avergage assets   3.26 %   3.10 %   3.23 %   3.43 %   2.88 %   2.98 %   2.93 %   2.83 %       3.25 %   2.91 %    
Net overhead ratio   1.58 %   1.21 %   1.48 %   2.31 %   1.75 %   1.82 %   1.61 %   1.69 %       1.63 %   1.71 %    
Efficiency ratio (FTE)   70.65 %   65.16 %   68.92 %   78.86 %   64.43 %   65.10 %   59.73 %   59.02 %       70.53 %   62.03 %    
Adjusted efficiency ratio (FTE) (non-GAAP) (4)   64.35 %   62.63 %   60.89 %   68.73 %   63.62 %   62.53 %   58.30 %   57.62 %       64.00 %   60.48 %    
                                               
RENASANT CORPORATION                                              
(Unaudited)                                              
(Dollars in thousands, except per share data)                        
                                          Q4 2020 -   As of
          2020   2019   Q4 2019   December 31,
          Fourth   Third   Second   First   Fourth   Third   Second   First   Percent           Percent
    Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Variance   2020   2019   Variance
Average Balances                                                
Total assets   $ 14,898,055     $ 14,928,159     $ 14,706,027     $ 13,472,550     $ 13,157,843     $ 12,846,131     $ 12,764,669     $ 12,730,939     13.23   %   $ 14,503,449     $ 12,875,986     12.64   %
Earning assets   13,059,967     13,034,422     12,776,643     11,609,477     11,277,000     10,993,645     10,942,492     10,895,205     15.81       12,622,461     11,028,040     14.46    
Securities   1,269,108     1,269,565     1,295,539     1,292,875     1,234,718     1,227,678     1,262,271     1,253,224     2.79       1,281,704     1,244,376     3.00    
Loans held for sale   389,435     378,225     340,582     336,829     350,783     385,437     353,103     345,264     11.02       361,391     358,735     0.74    
Loans, net of unearned income   11,019,505     11,041,684     10,616,147     9,687,285     9,457,658     9,109,252     9,043,788     9,059,802     16.51       10,593,556     9,168,555     15.54    
Intangibles   970,624     972,394     974,237     975,933     977,506     975,306     974,628     976,820     (0.70 )     973,287     976,065     (0.28 )  
Noninterest-bearing deposits   3,808,595     3,723,059     3,439,634     2,586,963     2,611,265     2,500,810     2,395,899     2,342,406     45.85       3,391,619     2,463,436     37.68    
Interest-bearing deposits   8,190,997     8,109,844     7,933,035     7,737,615     7,620,602     7,719,510     7,750,986     7,799,892     7.48       7,993,733     7,722,247     3.52    
Total deposits   11,999,592     11,832,903     11,372,669     10,324,578     10,231,867     10,220,320     10,146,885     10,142,298     17.28       11,385,352     10,185,683     11.78    
Borrowed funds   516,414     719,800     1,000,789     829,320     596,101     308,931     354,234     363,140     (13.37 )     765,769     405,975     88.62    
Shareholders' equity   2,132,375     2,119,500     2,101,092     2,105,143     2,131,342     2,131,537     2,102,093     2,065,370     0.05       2,114,590     2,107,832     0.32    
                                               
                                  Q4 2020 -   As of
    2020   2019   Q4 2019   December 31,
    Fourth   Third   Second   First   Fourth   Third   Second   First   Percent           Percent
    Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Variance   2020   2019   Variance
Balances at period end                                                
Total assets   $ 14,929,666     $ 14,808,933     $ 14,897,207     $ 13,890,550     $ 13,400,618     $ 13,039,674     $ 12,892,653     $ 12,862,395     11.41   %   $ 14,929,666     $ 13,400,618     11.41   %
Earning assets   13,151,707     12,984,651     13,041,846     11,980,482     11,522,388     11,145,052     11,064,957     11,015,535     14.14       13,151,707     11,522,388     14.14    
Securities   1,343,457     1,293,388     1,303,494     1,359,129     1,290,613     1,238,577     1,268,280     1,255,353     4.09       1,343,457     1,290,613     4.09    
Loans held for sale   417,771     399,773     339,747     448,797     318,272     392,448     461,681     318,563     31.26       417,771     318,272     31.26    
Non purchased loans   9,419,540     9,424,224     9,206,101     7,802,404     7,587,974     7,031,818     6,704,288     6,565,599     24.14       9,419,540     7,587,974     24.14    
Purchased loans   1,514,107     1,660,514     1,791,203     1,966,973     2,101,664     2,281,966     2,350,366     2,522,694     (27.96 )     1,514,107     2,101,664     (27.96 )  
  Total loans   10,933,647     11,084,738     10,997,304     9,769,377     9,689,638     9,313,784     9,054,654     9,088,293     12.84       10,933,647     9,689,638     12.84    
Intangibles   969,823     971,481     973,214     975,048     976,943     978,390     973,673     975,726     (0.73 )     969,823     976,943     (0.73 )  
Noninterest-bearing deposits   3,685,048     3,758,242     3,740,296     2,642,059     2,551,770     2,607,056     2,408,984     2,366,223     44.41       3,685,048     2,551,770     44.41    
Interest-bearing deposits   8,374,033     8,175,898     8,106,062     7,770,367     7,661,398     7,678,980     7,781,077     7,902,689     9.30       8,374,033     7,661,398     9.30    
  Total deposits   12,059,081     11,934,140     11,846,358     10,412,426     10,213,168     10,286,036     10,190,061     10,268,912     18.07       12,059,081     10,213,168     18.07    
Borrowed funds   496,519     517,706     718,490     1,179,631     865,598     433,705     401,934     350,859     (42.64 )     496,519     865,598     (42.64 )  
Shareholders’ equity   2,132,578     2,104,300     2,082,946     2,070,512     2,125,689     2,119,659     2,119,696     2,088,877     0.32       2,132,578     2,125,689     0.32    
Market value per common share   33.68     22.72     24.90     21.84     35.42     35.01     35.94     33.85     (4.91 )     33.68     35.42     (4.91 )  
Book value per common share   37.95     37.45     37.07     36.88     37.39     36.89     36.36     35.63     1.50       37.95     37.39     1.50    
Tangible book value per common share   20.69     20.16     19.75     19.51     20.20     19.86     19.66     18.98     2.43       20.69     20.20     2.43    
Shareholders’ equity to assets (actual)   14.28 %   14.21 %   13.98 %   14.91 %   15.86 %   16.26 %   16.44 %   16.24 %       14.28 %   15.86 %    
Tangible capital ratio (non-GAAP)(3)   8.33 %   8.19 %   7.97 %   8.48 %   9.25 %   9.46 %   9.62 %   9.36 %       8.33 %   9.25 %    
Leverage ratio   9.37 %   9.17 %   9.12 %   9.90 %   10.37 %   10.56 %   10.65 %   10.44 %       9.37 %   10.37 %    
Common equity tier 1 capital ratio   10.93 %   10.80 %   10.69 %   10.63 %   11.12 %   11.36 %   11.64 %   11.49 %       10.93 %   11.12 %    
Tier 1 risk-based capital ratio   11.91 %   11.79 %   11.69 %   11.63 %   12.14 %   12.40 %   12.69 %   12.55 %       11.91 %   12.14 %    
Total risk-based capital ratio   15.07 %   14.89 %   13.72 %   13.44 %   13.78 %   14.07 %   14.62 %   14.57 %       15.07 %   13.78 %    
                                               
RENASANT CORPORATION                                              
(Unaudited)                                              
(Dollars in thousands, except per share data)                        
                                          Q4 2020 -   As of
          2020   2019   Q4 2019   December 31,
          Fourth   Third   Second   First   Fourth   Third   Second   First   Percent           Percent
    Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Variance   2020   2019   Variance
Non purchased loans                                                
Commercial, financial, agricultural   $ 1,231,768     $ 1,137,321     $ 1,134,965     $ 1,144,004     $ 1,052,353     $ 988,867     $ 930,598     $ 921,081     17.05   %   $ 1,231,768     $ 1,052,353     17.05   %
SBA Paycheck Protection Program   1,128,703     1,307,972     1,281,278                               1,128,703            
Lease financing   75,862     82,928     80,779     84,679     81,875     69,953     59,158     58,651     (7.34 )     75,862     81,875     (7.34 )  
Real estate - construction   827,152     738,873     756,872     745,066     774,901     764,589     716,129     651,119     6.74       827,152     774,901     6.74    
Real estate - 1-4 family mortgages   2,356,564     2,369,292     2,342,987     2,356,627     2,350,126     2,235,908     2,160,617     2,114,908     0.27       2,356,564     2,350,126     0.27    
Real estate - commercial mortgages   3,649,629     3,610,642     3,400,718     3,242,172     3,128,876     2,809,470     2,741,402     2,726,186     16.64       3,649,629     3,128,876     16.64    
Installment loans to individuals   149,862     177,195     208,502     229,856     199,843     163,031     96,384     93,654     (25.01 )     149,862     199,843     (25.01 )  
Loans, net of unearned income   $ 9,419,540     $ 9,424,223     $ 9,206,101     $ 7,802,404     $ 7,587,974     $ 7,031,818     $ 6,704,288     $ 6,565,599     24.14       $ 9,419,540     $ 7,587,974     24.14    
Purchased loans                                              
Commercial, financial, agricultural   $ 176,513     $ 202,768     $ 225,355     $ 280,572     $ 315,619     $ 339,693     $ 374,478     $ 387,376     (44.07 )     $ 176,513     $ 315,619     (44.07 )  
Real estate - construction   30,952     34,246     34,236     42,829     51,582     52,106     65,402     89,954     (39.99 )     30,952     51,582     (39.99 )  
Real estate - 1-4 family mortgages   341,744     391,102     445,526     489,674     516,487     561,725     604,855     654,265     (33.83 )     341,744     516,487     (33.83 )  
Real estate - commercial mortgages   905,223     966,367     1,010,035     1,066,536     1,115,389     1,212,905     1,276,567     1,357,446     (18.84 )     905,223     1,115,389     (18.84 )  
Installment loans to individuals   59,675     66,031     76,051     87,362     102,587     115,537     29,064     33,653     (41.83 )     59,675     102,587     (41.83 )  
Loans, net of unearned income   $ 1,514,107     $ 1,660,514     $ 1,791,203     $ 1,966,973     $ 2,101,664     $ 2,281,966     $ 2,350,366     $ 2,522,694     (27.96 )     $ 1,514,107     $ 2,101,664     (27.96 )  
Asset quality data                                              
Non purchased assets                                              
Nonaccrual loans   $ 20,369     $ 18,831     $ 16,591     $ 21,384     $ 21,509     $ 15,733     $ 14,268     $ 12,507     (5.30 )     $ 20,369     $ 21,509     (5.30 )  
Loans 90 past due or more   3,783     1,826     3,993     4,459     3,458     7,325     4,175     1,192     9.40       3,783     3,458     9.40    
Nonperforming loans   24,152     20,657     20,584     25,843     24,967     23,058     18,443     13,699     (3.26 )     24,152     24,967     (3.26 )  
Other real estate owned   2,045     3,576     4,694     3,241     2,762     1,975     3,475     4,223     (25.96 )     2,045     2,762     (25.96 )  
Nonperforming assets   $ 26,197     $ 24,233     $ 25,278     $ 29,084     $ 27,729     $ 25,033     $ 21,918     $ 17,922     (5.52 )     $ 26,197     $ 27,729     (5.52 )  
Purchased assets                                              
Nonaccrual loans   $ 31,051     $ 24,821     $ 21,361     $ 19,090     $ 7,038     $ 6,123     $ 7,250     $ 7,828     341.19       $ 31,051     $ 7,038     341.19    
Loans 90 past due or more   267     318     2,158     5,104     4,317     7,034     7,687     5,436     (93.82 )     267     4,317     (93.82 )  
Nonperforming loans   31,318     25,139     23,519     24,194     11,355     13,157     14,937     13,264     175.81       31,318     11,355     175.81    
Other real estate owned   3,927     4,576     4,431     5,430     5,248     6,216     5,258     5,932     (25.17 )     3,927     5,248     (25.17 )  
Nonperforming assets   $ 35,245     $ 29,715     $ 27,950     $ 29,624     $ 16,603     $ 19,373     $ 20,195     $ 19,196     112.28       $ 35,245     $ 16,603     112.28    
Net loan charge-offs (recoveries)   $ 954     $ 389     $ 1,698     $ 811     $ 1,602     $ 945     $ 676     $ 691     (40.45 )     $ 3,852     $ 3,914     (1.58 )  
Allowance for credit losses on loans   $ 176,144     $ 168,098     $ 145,387     $ 120,185     $ 52,162     $ 50,814     $ 50,059     $ 49,835     237.69       $ 176,144     $ 52,162     237.69    
Annualized net loan charge-offs / average loans   0.03 %   0.01 %   0.06 %   0.03 %   0.07 %   0.04 %   0.03 %   0.03 %       0.04 %   0.04 %    
Nonperforming loans / total loans*   0.51 %   0.41 %   0.40 %   0.51 %   0.37 %   0.39 %   0.37 %   0.30 %       0.51 %   0.37 %    
Nonperforming assets / total assets*   0.41 %   0.36 %   0.36 %   0.42 %   0.33 %   0.34 %   0.33 %   0.29 %       0.41 %   0.33 %    
Allowance for credit losses on loans / total loans*   1.61 %   1.52 %   1.32 %   1.23 %   0.54 %   0.55 %   0.55 %   0.55 %       1.61 %   0.54 %    
Allowance for credit losses on loans / nonperforming loans*   317.55 %   367.05 %   329.65 %   240.19 %   143.61 %   140.31 %   149.97 %   184.83 %       317.55 %   143.61 %    
Nonperforming loans / total loans**   0.26 %   0.22 %   0.22 %   0.33 %   0.33 %   0.33 %   0.28 %   0.21 %       0.26 %   0.33 %    
Nonperforming assets / total assets**   0.18 %   0.16 %   0.17 %   0.21 %   0.21 %   0.19 %   0.17 %   0.14 %       0.18 %   0.21 %    
*Based on all assets (includes purchased assets)                
**Excludes all purchased assets                



RENASANT CORPORATION                                                                        
(Unaudited)                                                                        
(Dollars in thousands, except per share data)                                                                        
                                                                             
    Three Months Ending   For The Twelve Months Ending  
    December 31, 2020   September 30, 2020   December 31, 2019   December 31, 2020       December 31, 2019  
    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   $ 8,167,922      $ 81,626      3.98  %   $ 8,012,741      $ 81,281      4.04  %   $ 7,258,517      $ 87,482      4.78  %   $ 7,927,817      $ 333,296    4.20  %   $ 6,784,132      $ 337,672    4.98  %
Purchased   1,598,593      21,560      5.37  %   1,723,714      24,034      5.55  %   2,199,141      34,270      6.18  %   1,807,354      101,785    5.63  %   2,384,423      149,568    6.27  %
SBA Paycheck Protection Program   1,252,990      10,271      3.26  %   1,305,229      7,449      2.27  %   —      —      —  %   858,385      23,605    2.75  %   —      —    —  %
Total loans   11,019,505      113,457      4.10  %   11,041,684      112,764      4.06  %   9,457,658      121,752      5.11  %   10,593,556      458,686    4.33  %   9,168,555      487,240    5.31  %
Loans held for sale   389,435      3,083      3.15  %   378,225      3,144      3.31  %   350,783      3,167      3.58  %   361,391      12,191    3.37  %   358,735      18,171    5.07  %
Securities:                                                        
Taxable(1)   985,695      4,953      2.00  %   1,003,886      5,473      2.17  %   1,018,076      6,994      2.73  %   1,021,999      24,102    2.36  %   1,051,124      29,786    2.83  %
Tax-exempt   283,413      2,238      3.14  %   265,679      2,205      3.30  %   216,642      2,093      3.83  %   259,705      8,848    3.41  %   193,252      7,821    4.05  %
Total securities   1,269,108      7,191      2.25  %   1,269,565      7,678      2.41  %   1,234,718      9,087      2.92  %   1,281,704      32,950    2.57  %   1,244,376      37,607    3.02  %
Interest-bearing balances with banks   381,919      92      0.10  %   344,948      91      0.10  %   233,841      1,113      1.89  %   385,810      1,190    0.31  %   256,374      5,891    2.30  %
Total interest-earning assets   13,059,967      123,823      3.77  %   13,034,422      123,677      3.77  %   11,277,000      135,119      4.75  %   12,622,461      505,017    4.00  %   11,028,040      548,909    4.98  %
Cash and due from banks   196,552              210,278              176,582              201,815            179,991         
Intangible assets   970,624              972,394              977,506              973,287            976,065         
Other assets   670,912              711,065              726,755              705,886            691,890         
Total assets   $ 14,898,055              $ 14,928,159              $ 13,157,843              $ 14,503,449            $ 12,875,986         
Liabilities and shareholders’ equity                                                        
Interest-bearing liabilities:                                                        
Deposits:                                                        
Interest-bearing demand(2)   $ 5,607,906      $ 4,380      0.31  %   $ 5,405,085      $ 4,839      0.36  %   $ 4,749,018      $ 9,653      0.81  %   $ 5,277,374      $ 23,995    0.45  %   $ 4,754,201      $ 40,991    0.86  %
Savings deposits   830,304      165      0.08  %   796,841      167      0.08  %   661,362      282      0.17  %   764,146      758    0.10  %   647,271      1,258    0.19  %
Time deposits   1,752,787      5,296      1.20  %   1,907,918      6,804      1.42  %   2,210,222      9,783      1.76  %   1,952,213      29,263    1.50  %   2,320,775      39,746    1.71  %
Total interest-bearing deposits   8,190,997      9,841      0.48  %   8,109,844      11,810      0.58  %   7,620,602      19,718      1.03  %   7,993,733      54,016    0.68  %   7,722,247      81,995    1.06  %
Borrowed funds   516,414      3,958      3.05  %   719,800      3,982      2.20  %   596,101      4,545      3.02  %   765,769      17,319    2.26  %   405,975      16,928    4.17  %
Total interest-bearing liabilities   8,707,411      13,799      0.63  %   8,829,644      15,792      0.71  %   8,216,703      24,263      1.17  %   8,759,502      71,335    0.81  %   8,128,222      98,923    1.22  %
Noninterest-bearing deposits   3,808,595              3,723,059              2,611,265              3,391,619            2,463,436         
Other liabilities   249,674              255,956              198,533              237,738            176,496         
Shareholders’ equity   2,132,375              2,119,500              2,131,342              2,114,590            2,107,832         
Total liabilities and shareholders’ equity   $ 14,898,055              $ 14,928,159              $ 13,157,843              $ 14,503,449            $ 12,875,986         
Net interest income/ net interest margin       $ 110,024      3.35  %       $ 107,885      3.29  %       $ 110,856      3.90  %       $ 433,682    3.44  %       $ 449,986    4.08  %
Cost of funding           0.44  %           0.50  %           0.89  %         0.59  %         0.93  %
Cost of total deposits           0.33  %           0.40  %           0.76  %         0.47  %         0.81  %
                                                         
(1) U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which we operate.                    
(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      
                                              Twelve Months Ended
          2020   2019       December 31,
          Fourth   Third   Second   First   Fourth   Third   Second   First            
    Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter       2020   2019
Net income (GAAP)   $ 31,521     $ 29,992     $ 20,130     $ 2,008     $ 38,415     $ 37,446     $ 46,625     $ 45,110         $ 83,651     $ 167,596  
  Amortization of intangibles   1,659     1,733     1,834     1,895     1,946     1,996     2,053     2,110         7,121     8,105  
  Tax effect of adjustment noted above (A)   (297 )   (374 )   (335 )   (527 )   (383 )   (457 )   (473 )   (488 )       (1,382 )   (1,807 )
Tangible net income (non-GAAP)   $ 32,883     $ 31,351     $ 21,629     $ 3,376     $ 39,978     $ 38,985     $ 48,205     $ 46,732         $ 89,390     $ 173,894  
                                                   
Net income (GAAP)   $ 31,521     $ 29,992     $ 20,130     $ 2,008     $ 38,415     $ 37,446     $ 46,625     $ 45,110         $ 83,651     $ 167,596  
  Merger & conversion expenses                   76     24     179                 279  
  Debt prepayment penalties   3     28     90             54                 121     54  
  MSR valuation adjustment   (1,968 )   (828 )   4,951     9,571     (1,296 )   3,132                 11,726     1,836  
  Restructuring charges   7,365                                     7,365      
  Swap termination charges   2,040                                     2,040      
  COVID-19 related expenses   613     570     6,257     2,903                         10,343      
  Tax effect of adjustment noted above (A)   (1,443 )   50     (2,065 )   (3,467 )   241     (736 )   (41 )           (6,131 )   (484 )
Net income with exclusions (non-GAAP)   $ 38,131     $ 29,812     $ 29,363     $ 11,015     $ 37,436     $ 39,920     $ 46,763     $ 45,110         $ 109,115     $ 169,281  
                                                   
Average shareholders’ equity (GAAP)   $ 2,132,375     $ 2,119,500     $ 2,101,092     $ 2,105,143     $ 2,131,342     $ 2,131,537     $ 2,102,093     $ 2,065,370         $ 2,114,590     $ 2,107,832  
  Intangibles   970,624     972,394     974,237     975,933     977,506     975,306     974,628     976,820         973,287     976,065  
Average tangible s/h’s equity (non-GAAP)   $ 1,161,751     $ 1,147,106     $ 1,126,855     $ 1,129,210     $ 1,153,836     $ 1,156,231     $ 1,127,465     $ 1,088,550         $ 1,141,303     $ 1,131,767  
                                                   
Average total assets (GAAP)   $ 14,898,055     $ 14,928,159     $ 14,706,027     $ 13,472,550     $ 13,157,843     $ 12,846,131     $ 12,764,669     $ 12,730,939         $ 14,503,449     $ 12,875,986  
  Intangibles   970,624     972,394     974,237     975,933     977,506     975,306     974,628     976,820         973,287     976,065  
Average tangible assets (non-GAAP)   $ 13,927,431     $ 13,955,765     $ 13,731,790     $ 12,496,617     $ 12,180,337     $ 11,870,825     $ 11,790,041     $ 11,754,119         $ 13,530,162     $ 11,899,921  
                                                   
Actual shareholders’ equity (GAAP)   $ 2,132,578     $ 2,104,300     $ 2,082,946     $ 2,070,512     $ 2,125,689     $ 2,119,659     $ 2,119,696     $ 2,088,877         $ 2,132,578     $ 2,125,689  
  Intangibles   969,823     971,481     973,214     975,048     976,943     978,390     973,673     975,726         969,823     976,943  
Actual tangible s/h’s equity (non-GAAP)   $ 1,162,755     $ 1,132,819     $ 1,109,732     $ 1,095,464     $ 1,148,746     $ 1,141,269     $ 1,146,023     $ 1,113,151         $ 1,162,755     $ 1,148,746  
                                                   
Actual total assets (GAAP)   $ 14,929,666     $ 14,808,933     $ 14,897,207     $ 13,890,550     $ 13,400,618     $ 13,039,674     $ 12,892,653     $ 12,862,395         $ 14,929,666     $ 13,400,618  
  Intangibles   969,823     971,481     973,214     975,048     976,943     978,390     973,673     975,726         969,823     976,943  
Actual tangible assets (non-GAAP)   $ 13,959,843     $ 13,837,452     $ 13,923,993     $ 12,915,502     $ 12,423,675     $ 12,061,284     $ 11,918,980     $ 11,886,669         $ 13,959,843     $ 12,423,675  
                                                   
  (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      
                                              Twelve Months Ended
          2020   2019       December 31,
          Fourth   Third   Second   First   Fourth   Third   Second   First            
    Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter       2020   2019
(1) Return on Average Equity                                            
Return on avg s/h’s equity (GAAP)   5.88  %   5.63    %   3.85  %   0.38  %   7.15    %   6.97  %   8.90  %   8.86  %       3.96  %   7.95  %
  Effect of adjustment for intangible assets   5.38  %   5.24    %   3.87  %   0.82  %   6.60    %   6.41  %   8.25  %   8.55  %       3.87  %   7.41  %
Return on avg tangible s/h’s equity (non-GAAP)   11.26  %   10.87    %   7.72  %   1.20  %   13.75    %   13.38  %   17.15  %   17.41  %       7.83  %   15.36  %
                                                   
Return on avg s/h’s equity (GAAP)   5.88  %   5.63    %   3.85  %   0.38  %   7.15    %   6.97  %   8.90  %   8.86  %       3.96  %   7.95  %
  Effect of exclusions from net income   1.23  %   (0.03 ) %   1.77  %   1.72  %   (0.18 ) %   0.46  %   0.02  %   —  %       1.20  %   0.80  %
Return on avg s/h’s equity with excl. (non-GAAP)   7.11  %   5.60    %   5.62  %   2.10  %   6.97    %   7.43  %   8.92  %   8.86  %       5.16  %   8.03  %
  Effect of adjustment for intangible assets   6.41  %   5.21    %   5.39  %   2.31  %   6.44    %   6.80  %   8.28  %   8.55  %       4.90  %   7.48  %
Return on avg tangible s/h’s equity with exclusions (non-GAAP)   13.52  %   10.81    %   11.01  %   4.41  %   13.41    %   14.23  %   17.20  %   17.41  %       10.06  %   15.51  %
                                                   
(2) Return on Average Assets                                            
Return on avg assets (GAAP)   0.84  %   0.80    %   0.55  %   0.06  %   1.16    %   1.16  %   1.47  %   1.44  %       0.58  %   1.30  %
  Effect of adjustment for intangible assets   0.10  %   0.09    %   0.08  %   0.05  %   0.14    %   0.14  %   0.17  %   0.17  %       0.08  %   0.16  %
Return on avg tangible assets (non-GAAP)   0.94  %   0.89    %   0.63  %   0.11  %   1.30    %   1.30  %   1.64  %   1.61  %       0.66  %   1.46  %
                                                   
Return on avg assets (GAAP)   0.84  %   0.80    %   0.55  %   0.06  %   1.16    %   1.16  %   1.47  %   1.44  %       0.58  %   1.30  %
  Effect of exclusions from net income   0.18  %   (0.01 ) %   0.25  %   0.27  %   (0.03 ) %   0.07  %   —  %   —  %       0.17  %   0.01  %
Return on avg assets with exclusions (non-GAAP)   1.02  %   0.79    %   0.80  %   0.33  %   1.13    %   1.23  %   1.47  %   1.44  %       0.75  %   1.31  %
  Effect of adjustment for intangible assets   0.11  %   0.10    %   0.10  %   0.07  %   0.14    %   0.16  %   0.17  %   0.17  %       0.10  %   0.17  %
Return on avg tangible assets with exclusions (non-GAAP)   1.13  %   0.89    %   0.90  %   0.40  %   1.27    %   1.39  %   1.64  %   1.61  %       0.85  %   1.48  %
                                                   
(3) Shareholder Equity Ratio                                            
Shareholders’ equity to actual assets (GAAP)   14.28  %   14.21    %   13.98  %   14.91  %   15.86    %   16.26  %   16.44  %   16.24  %       14.28  %   15.86  %
  Effect of adjustment for intangible assets   5.95  %   6.02    %   6.01  %   6.43  %   6.61    %   6.80  %   6.82  %   6.88  %       5.95  %   6.61  %
Tangible capital ratio (non-GAAP)   8.33  %   8.19    %   7.97  %   8.48  %   9.25    %   9.46  %   9.62  %   9.36  %       8.33  %   9.25  %
                                                                       



RENASANT CORPORATION                                              
(Unaudited)                                              
(Dollars in thousands, except per share data)                                              
                                                   
                                                   
                                        Twelve Months Ended
      2020   2019     December 31,
      Fourth   Third   Second   First   Fourth   Third   Second   First          
      Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter   Quarter     2020   2019
Interest income (FTE) $ 123,823     $ 123,677     $ 125,630       $ 131,887       $ 135,119     $ 135,927       $ 139,285       $ 138,578       $ 505,017       $ 548,909    
  Interest expense 13,799     15,792     18,173       23,571       24,263     25,651       25,062       23,947       71,335       98,923    
Net Interest income (FTE) $ 110,024     $ 107,885     $ 107,457       $ 108,316       $ 110,856     $ 110,276       $ 114,223       $ 114,631       $ 433,682       $ 449,986    
                                             
Total noninterest income $ 62,864     $ 70,928     $ 64,170       $ 37,570       $ 37,456     $ 37,953       $ 41,960       $ 35,885       $ 235,532       $ 153,254    
  Securities gains (losses) 15         31                 343       (8 )     13       46       348