• Renasant Corporation Announces Earnings for the Second Quarter of 2021

    Source: Nasdaq GlobeNewswire / 27 Jul 2021 16:00:01   America/Chicago

    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-taxAfter-taxImpact to Diluted EPS Pre-taxAfter-taxImpact 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 charges15 12 —  307  239  — 
    COVID-19 related expenses370 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-taxAfter-taxImpact to Diluted EPS Pre-taxAfter-taxImpact to Diluted EPS
    Earnings, as reported$24,767 $20,130 $0.36  $27,548  $22,138  $0.39 
    MSR valuation adjustment4,951 4,047 0.07  14,522  11,835  0.21 
    COVID-19 related expenses6,257 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 ReportedWith Exclusions
    (Non-GAAP)
     Three Months EndedThree Months Ended
     June 30, 2021March 31, 2021June 30, 2020June 30, 2021March 31, 2021June 30, 2020
    Return on average assets1.04%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 equity7.40%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 ReportedWith Exclusions
    (Non-GAAP)
     Six Months EndedSix Months Ended
     June 30, 2021 June 30, 2020June 30, 2021 June 30, 2020
    Return on average assets1.28% 0.32%1.16% 0.59%
    Return on average tangible assets (Non-GAAP)1.40% 0.39%1.27% 0.68%
    Return on average equity9.08% 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 AssetsYield
     Three Months EndedThree Months Ended
     June 30,March 31, June 30,June 30,March 31,June 30,
     202120212020202120212020
    Loans held for investment excluding PPP loans70.41%73.49%76.31%4.10%4.22%4.45%
    PPP loans4.49 7.38 6.78 6.46 4.40 2.73 
    Loans held for sale3.30 3.04 2.67 3.12 2.96 3.51 
    Securities13.02 10.27 10.14 1.73 2.08 2.71 
    Other8.78 5.82 4.10 0.11 0.10 0.15 
    Total earning assets100.00%100.00%100.00%3.51%3.74%3.95%


     Percentage of Total Average Earning AssetsYield
     Six Months EndedSix Months Ended
     June 30,June 30,June 30,June 30,
     2021202020212020
    Loans held for investment excluding PPP loans71.91%79.71%4.16%4.69%
    PPP loans5.90 3.55 5.20 2.73 
    Loans held for sale3.17 2.78 3.05 3.54 
    Securities11.68 10.61 1.88 2.81 
    Other7.34 3.35 0.11 0.50 
    Total earning assets100.00%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,
     202120212020
    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 margin3.19%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 yield4.24%4.24%4.31%


     Six Months Ended
     June 30,June 30,
     20212020
    Taxable equivalent net interest income$222,469 $215,773 
    Average earning assets$13,673,971 $12,193,061 
    Net interest margin3.28%3.56%
       
    Taxable equivalent interest income on loans$223,856 $232,468 
    Average loans held for investment$10,640,556 $10,151,716 
    Loan yield4.24%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,
     202120212020
    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 yield0.15%0.20%0.19%
        
    Impact to net interest margin0.11%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,
     20212020
    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 yield0.18%0.21%
       
    Impact to net interest margin0.14%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 demand31.88% 30.20% 27.80% —% —% —%
    Interest-bearing demand45.59  46.18  41.64  0.27  0.27  0.43 
    Savings7.24  6.90  6.04  0.08  0.08  0.09 
    Time deposits11.68  12.94  16.44  0.88  1.02  1.62 
    Borrowed funds3.61  3.78  8.08  3.11  3.21  1.73 
    Total deposits and borrowed funds100.00% 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 demand31.06% 25.62% —% —%
    Interest-bearing demand45.88  42.89  0.27  0.59 
    Savings7.07  6.07  0.08  0.12 
    Time deposits12.30  17.64  0.95  1.66 
    Borrowed funds3.69  7.78  3.16  2.06 
    Total deposits and borrowed funds100.00% 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, 2021March 31, 2021June 30, 2020
    Gain on sales of loans, net$17,581  $33,901  $46,560  
    Fees, net4,519  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, 2021June 30, 2020
    Gain on sales of loans, net$51,482   $68,342   
    Fees, net9,421   8,228   
    Mortgage servicing loss, net(2,878) (1,023) 
    MSR valuation adjustment13,561   (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, 2021December 31, 2020
    Allowance for credit losses on loans$172,354 $176,144 
    Allowance for credit losses on deferred interest1,367 1,500 
    Reserve for unfunded commitments20,535 20,535 
    Total allowance for credit losses$194,256 $198,179 
    Allowance for credit losses on loans/total loans1.70%1.61%
    Allowance for credit losses on loans/total loans excluding PPP loans1.74%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 expense11,412  12,114  13,799  15,792  18,173  23,571  (37.20)  23,526  41,744  (43.64) 
     Net interest income109,579  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 provision109,579  109,648  97,627  83,186  78,882  80,252  38.92   219,227  159,134  37.76  
    Service charges on deposit accounts9,458  8,023  7,938  7,486  6,832  9,070  38.44   17,481  15,902  9.93  
    Fees and commissions on loans and deposits4,110  3,900  3,616  3,402  2,971  3,054  38.34   8,010  6,025  32.95  
    Insurance commissions and fees2,422  2,237  2,193  2,681  2,125  1,991  13.98   4,659  4,116  13.19  
    Wealth management revenue5,019  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 income20,853  50,733  39,760  49,714  45,490  15,535  (54.16)  71,586  61,025  17.31  
    Other5,748  9,995  5,028  3,281  2,897  3,918  98.41   15,743  6,815  131.01  
     Total noninterest income47,610  81,037  62,864  70,928  64,170  37,570  (25.81)  128,647  101,740  26.45  
    Salaries and employee benefits70,293  78,696  74,432  75,406  79,361  73,189  (11.43)  148,989  152,550  (2.33) 
    Data processing5,652  5,451  5,373  5,259  5,047  5,006  11.99   11,103  10,053  10.44  
    Occupancy and equipment11,374  12,538  13,153  13,296  13,511  14,120  (15.82)  23,912  27,631  (13.46) 
    Other real estate104  41  683  1,033  620  418  (83.23)  145  1,038  (86.03) 
    Amortization of intangibles1,539  1,598  1,659  1,733  1,834  1,895  (16.09)  3,137  3,729  (15.88) 
    Restructuring charges15  292  7,365  —  —  —  —   307  —  —  
    Swap termination charges—  —  2,040  —  —  —  —   —  —  —  
    Debt prepayment penalty—  —  3  28  90  —  (100.00)  —  90  (100.00) 
    Other19,800  17,319  17,444  19,755  17,822  20,413  11.10   37,119  38,235  (2.92) 
     Total noninterest expense108,777  115,935  122,152  116,510  118,285  115,041  (8.04)  224,712  233,326  (3.69) 
    Income before income taxes48,412  74,750  38,339  37,604  24,767  2,781  95.47   123,162  27,548  347.08  
    Income taxes7,545  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 share0.72  1.02  0.56  0.53  0.36  0.04  100.00   1.75  0.39  348.72  
    Average basic shares outstanding56,325,717  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 outstanding56,635,898  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 outstanding56,350,878  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’ equity7.40% 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 assets1.04% 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 funding0.34% 0.38% 0.44% 0.50% 0.59% 0.85%   0.36% 0.71%  
    Average earning assets to average assets88.37% 87.86% 87.66% 87.31% 86.88% 86.17%   88.12% 86.54%  
    Average loans to average deposits81.13% 87.78% 91.83% 93.31% 93.35% 93.83%   84.37% 93.58%  
    Noninterest income (less securities gains/                   
    losses) to average assets1.21% 2.13% 1.68% 1.89% 1.75% 1.12%   1.65% 1.45%  
    Noninterest expense (less debt prepayment penalties)                   
    to average assets2.76% 3.09% 3.26% 3.10% 3.23% 3.43%   2.92% 3.33%  
    Net overhead ratio1.55% 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 assets13,989,264  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  
    Securities1,821,429  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 sale461,752  406,397  389,435  378,225  340,582  336,829  35.58   434,075  338,706  28.16  
    Loans, net of unearned income10,478,121  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  
    Intangibles967,430  969,001  970,624  972,394  974,237  975,933  (0.70)  968,215  975,085  (0.70) 
    Noninterest-bearing deposits4,271,464  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 deposits8,644,386  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 deposits12,915,850  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 funds483,081  483,907  516,414  719,800  1,000,789  829,320  (51.73)  483,494  915,054  (47.16) 
    Shareholders' equity2,213,743  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 assets14,146,304  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  
    Securities2,163,820  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 sale448,959  502,002  417,771  399,773  339,747  448,797  7.47   448,959  339,747  32.15  
    Non purchased loans8,892,544  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 loans1,256,698  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 loans10,149,242  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) 
    Intangibles966,686  968,225  969,823  971,481  973,214  975,048  (0.32)  966,686  973,214  (0.67) 
    Noninterest-bearing deposits4,349,135  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 deposits8,766,216  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 deposits13,115,351  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 funds484,340  479,814  496,310  517,706  718,490  1,179,631  (2.41)  484,340  718,490  (32.59) 
    Shareholders’ equity2,203,807  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 share40.00  41.38  33.68  22.72  24.90  21.84  18.76   40.00  24.90  60.64  
    Book value per common share39.11  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 ratio9.30% 9.49% 9.37% 9.17% 9.12% 9.90%   9.30% 9.12%  
    Common equity tier 1 capital ratio11.14% 11.05% 10.93% 10.80% 10.69% 10.63%   11.14% 10.69%  
    Tier 1 risk-based capital ratio12.07% 12.00% 11.91% 11.79% 11.69% 11.63%   12.07% 11.69%  
    Total risk-based capital ratio15.11% 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 Program246,931  860,864 1,128,703  1,307,972  1,281,278  —  (78.12)  246,931  1,281,278  (80.73) 
    Lease financing74,003  75,256 75,862  82,928  80,779  84,679  (2.45)  74,003  80,779  (8.39) 
    Real estate - construction1,038,613  933,586 827,152  738,873  756,872  745,066  25.56   1,038,613  756,872  37.22  
    Real estate - 1-4 family mortgages2,435,574  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 mortgages3,723,309  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 individuals111,137  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 - construction12,746  22,332 30,952  34,246  34,236  42,829  (58.82)  12,746  34,236  (62.77) 
    Real estate - 1-4 family mortgages266,517  305,141 341,744  391,102  445,526  489,674  (22.01)  266,517  445,526  (40.18) 
    Real estate - commercial mortgages806,860  872,867 905,223  966,367  1,010,035  1,066,536  (10.87)  806,860  1,010,035  (20.12) 
    Installment loans to individuals45,850  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 more800  2,235 3,783  1,826  3,993  4,459  (78.85)  800  3,993  (79.96) 
    Nonperforming loans27,901  27,029 24,152  20,657  20,584  25,843  15.52   27,901  20,584  35.55  
    Other real estate owned1,676  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 more945  129 267  318  2,158  5,104  253.93   945  2,158  (56.21) 
    Nonperforming loans28,635  29,076 31,318  25,139  23,519  24,194  (8.57)  28,635  23,519  21.75  
    Other real estate owned3,263  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 loans0.03% 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/   
    BalanceIncome/ RateBalanceIncome/ RateBalanceIncome/ 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%
    Purchased1,328,631 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 Program628,462 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 loans10,478,121 110,785 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 sale461,752 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-exempt317,824 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 securities1,821,429 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 banks1,227,962 346 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 assets13,989,264 122,617 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 banks195,982     205,830     214,079     200,906     200,198    
    Intangible assets967,430     969,001     974,237     968,215     975,085    
    Other assets678,342     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 deposits969,982 185 0.08% 882,758 169 0.08% 747,173 173 0.09% 926,370 354 0.08% 714,177 426 0.12%
    Time deposits1,564,448 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 deposits8,644,386 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 funds483,081 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 liabilities9,127,467 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 deposits4,271,464     3,862,422     3,439,634     4,066,943     3,013,298    
    Other liabilities218,344     240,171     231,477     229,257     222,495    
    Shareholders’ equity2,213,743     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 intangibles1,539  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 charges15  292  7,365  —  —  —  307  — 
     Swap termination charges—  —  2,040  —  —  —  —  — 
     COVID-19 related expenses370  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 
     Intangibles967,430  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 
     Intangibles967,430  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 
     Intangibles966,686  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 
     Intangibles966,686  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 assets6.14% 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 income0.06% (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 assets6.18% 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 assets0.10% 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 assets0.10% 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 assets5.53% 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 expense11,412  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 intangibles1,539  1,598  1,659  1,733  1,834   1,895   3,137  3,729  
     Debt prepayment penalty—  —  3  28  90   —   —  90  
     Restructuring charges15  292  7,365  —  —   —   307  —  
     Swap termination charges—  —  2,040  —  —   —   —  —  
     COVID-19 related expenses370  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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