• Renasant Corporation Announces Earnings for the Fourth Quarter of 2022

    来源: Nasdaq GlobeNewswire / 24 1月 2023 15:30:01   America/Chicago

    TUPELO, Miss., Jan. 24, 2023 (GLOBE NEWSWIRE) -- Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the fourth quarter of 2022.

    (Dollars in thousands, except earnings per share)Three Months Ended Twelve Months Ended
     Dec 31, 2022Sep 30, 2022Dec 31, 2021 Dec 31, 2022Dec 31, 2021
    Net income and earnings per share:      
    Net income$46,276$46,567$37,054 $166,068$175,892
    Basic EPS0.830.830.66 2.973.13
    Diluted EPS0.820.830.66 2.953.12
    Adjusted diluted EPS (Non-GAAP)(1)0.890.790.68 3.002.98

    “We are pleased to report a solid fourth quarter with quarterly earnings growing over the prior year,” remarked C. Mitchell Waycaster, Renasant President and Chief Executive Officer. “The company continues to emphasize the importance of core deposits, asset quality and capital strength in managing our balance sheet. We recently completed the acquisition of Republic Business Credit and are excited to welcome that team to Renasant.”

    Quarterly Highlights

    Acquisition

    • The Company completed the acquisition of Republic Business Credit, a factoring and asset-based lending company headquartered in New Orleans, Louisiana (“RBC”), on December 30, 2022. The RBC acquisition added $77.5 million in loans on the date of acquisition, and the Company recorded a provision for credit losses of $2.6 million, a provision for unfunded commitments of $0.2 million and merger expenses of $1.1 million

    Earnings

    • Net income for the fourth quarter of 2022 was $46.3 million with diluted EPS of $0.82 and adjusted diluted EPS (non-GAAP)(1) of $0.89
    • Net interest income (fully tax equivalent) for the fourth quarter of 2022 was $140.6 million, up $8.1 million on a linked quarter basis
    • For the fourth quarter of 2022, net interest margin was 3.78%, up 24 basis points on a linked quarter basis
    • Cost of total deposits was 52 basis points for the fourth quarter of 2022, up 31 basis points on a linked quarter basis
    • The Company’s wealth management and insurance lines of business produced steady results during the fourth quarter of 2022
    • The mortgage division generated $0.5 billion in interest rate lock volume during the fourth quarter of 2022, compared to $0.6 billion in the third quarter of 2022. Gain on sale margin was 1.64% for the fourth quarter of 2022, up 61 basis points on a linked quarter basis. The Company recognized a gain on the sale of mortgage servicing rights of $3.0 million in the third quarter. No such sales occurred in the fourth quarter
    • Fourth quarter noninterest expense remained relatively unchanged on a linked quarter basis. In addition to expenses incurred in connection with the RBC acquisition, the Company recorded $1.3 million in expense related to the voluntary reimbursement of certain re-presentment NSF fees previously charged to customers that the Company expects to make in 2023 in light of the FDIC’s recent guidance to banks regarding such fees. The efficiency ratio and adjusted efficiency ratio (non-GAAP)(1) for the fourth quarter was 58.4% and 56.3%, respectively

    Balance Sheet

    • Loans increased $473.3 million during the fourth quarter of 2022 from September 30, 2022; excluding RBC acquired loans, loans increased $395.8 million, which represents 14.14% annualized net loan growth
    • The securities portfolio decreased $64.8 million during the fourth quarter of 2022 from September 30, 2022, due to net cash outflows during the quarter of $75.4 million and a positive fair market value adjustment in our available-for-sale portfolio of $10.6 million
    • Deposits at December 31, 2022 increased $54.8 million from September 30, 2022, driven by an increase in interest bearing deposits. Noninterest bearing deposits decreased $268.5 million from September 30, 2022 to December 31, 2022 and represented 33.8% of total deposits at December 31, 2022. Brokered deposits were $233.1 million at December 31, 2022

    Capital

    • Book value per share and tangible book value per share (non-GAAP)(1) increased 2.1% and decreased 0.5%, respectively, on a linked quarter basis
    • The Company has a $100 million stock repurchase program that is in effect through October 2023; there was no buyback activity during the fourth quarter of 2022

    Credit Quality

    • The Company recorded a provision for credit losses on loans of $10.5 million for the fourth quarter of 2022, primarily driven by loan growth and the aforementioned provision with respect to acquired RBC loans
    • The allowance for credit losses on loans to total loans increased nine basis points on a linked quarter basis to 1.66% at December 31, 2022; an allowance of $9.8 million was recorded for RBC loans that had experienced credit deterioration prior to acquisition
    • The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 337.73% at December 31, 2022, compared to 312.10% at September 30, 2022
    • Net loan charge-offs for the fourth quarter of 2022 were $2.6 million, or 0.09% of average loans on an annualized basis
    • Credit metrics remained stable. Nonperforming loans to total loans decreased to 0.49% at December 31, 2022 compared to 0.50% at September 30, 2022 and criticized loans (which include classified and special mention loans) to total loans increased to 2.47% at December 31, 2022, compared to 2.37% at September 30, 2022

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

    Income Statement

    (Dollars in thousands, except per share data)Three Months Ended Twelve Months Ended
     Dec 31,
    2022    		Sep 30,
    2022    		Jun 30,
    2022    		Mar 31,
    2022    		Dec 31,
    2021    		 Dec 31,
    2022    		Dec 31,
    2021
    Interest income        
    Loans held for investment$145,360$123,100$106,409$95,829$98,478  $470,698$422,832 
    Loans held for sale 1,688 2,075 2,586 2,863 3,652   9,212 12,632 
    Securities 15,241 14,500 12,471 10,835 9,221   53,047 31,532 
    Other 2,777 3,458 1,954 664 568   8,853 1,689 
    Total interest income 165,066 143,133 123,420 110,191 111,919   541,810 468,685 
    Interest expense        
    Deposits 17,312 7,241 5,018 5,637 6,056   35,208 28,976 
    Borrowings 9,918 5,574 4,887 4,925 4,381   25,304 15,708 
    Total interest expense 27,230 12,815 9,905 10,562 10,437   60,512 44,684 
    Net interest income 137,836 130,318 113,515 99,629 101,482   481,298 424,001 
    Provision for (recovery of) credit losses        
    Provision for (recovery of) loan losses 10,488 9,800 2,000 1,500 (500)  23,788 (1,700)
    Provision for credit losses on HTM securities — — — — 32   — 32 
    Total provision for (recovery of) loan losses 10,488 9,800 2,000 1,500 (468)  23,788 (1,668)
    Net interest income after provision for (recovery of) credit losses 127,348 120,518 111,515 98,129 101,950   457,510 425,669 
    Noninterest income 33,395 41,186 37,214 37,458 47,582   149,253 226,984 
    Noninterest expense 101,582 101,574 98,194 94,105 101,115   395,455 429,826 
    Income before income taxes 59,161 60,130 50,535 41,482 48,417   211,308 222,827 
    Income taxes 12,885 13,563 10,857 7,935 11,363   45,240 46,935 
    Net income$46,276$46,567$39,678$33,547$37,054  $166,068$175,892 
             
    Adjusted net income (non-GAAP)(1)$50,324$44,233$40,601$33,728$38,232  $168,886$167,951 
    Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1)$72,187$66,970$54,172$42,664$49,190  $235,993$210,424 
             
    Basic earnings per share$0.83$0.83$0.71$0.60$0.66  $2.97$3.13 
    Diluted earnings per share 0.82 0.83 0.71 0.60 0.66   2.95 3.12 
    Adjusted diluted earnings per share (non-GAAP)(1) 0.89 0.79 0.72 0.60 0.68   3.00 2.98 
    Average basic shares outstanding 55,953,104 55,947,214 55,906,755 55,809,192 55,751,487   55,904,579 56,114,666 
    Average diluted shares outstanding 56,335,446 56,248,720 56,182,845 56,081,863 56,105,050   56,214,230 56,424,484 
    Cash dividends per common share$0.22$0.22$0.22$0.22$0.22  $0.88$0.88 

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

    Performance Ratios

     Three Months Ended Twelve Months Ended
     Dec 31,
    2022    		Sep 30,
    2022    		Jun 30,
    2022    		Mar 31,
    2022    		Dec 31,
    2021    		 Dec 31,
    2022    		Dec 31,
    2021
    Return on average assets1.11%1.11%0.96%0.81%0.89% 1.00%1.11%
    Adjusted return on average assets (non-GAAP)(1)1.20 1.05 0.98 0.82 0.92  1.02 1.06 
    Return on average tangible assets (non-GAAP)(1)1.20 1.20 1.04 0.89 0.98  1.09 1.21 
    Adjusted return on average tangible assets (non-GAAP)(1)1.30 1.14 1.07 0.90 1.01  1.10 1.16 
    Return on average equity8.58 8.50 7.31 6.05 6.59  7.60 7.96 
    Adjusted return on average equity (non-GAAP)(1)9.33 8.07 7.48 6.08 6.80  7.73 7.60 
    Return on average tangible equity (non-GAAP)(1)15.98 15.64 13.50 10.93 11.94  13.97 14.53 
    Adjusted return on average tangible equity (non-GAAP)(1)17.35 14.87 13.81 10.99 12.31  14.20 13.89 
    Efficiency ratio (fully taxable equivalent)58.39 58.50 64.37 67.78 67.04  61.89 65.35 
    Adjusted efficiency ratio (non-GAAP)(1)56.25 58.78 62.44 67.02 64.18  60.77 65.32 
    Dividend payout ratio26.51 26.51 30.99 36.67 33.33  29.63 28.12 

    Capital and Balance Sheet Ratios

     As of
     Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021
    Shares outstanding 55,953,104  55,953,104  55,932,017  55,880,666  55,756,233 
    Market value per share$37.59 $31.28 $28.81 $33.45 $37.95 
    Book value per share 38.18  37.39  37.85  38.25  39.63 
    Tangible book value per share (non-GAAP)(1) 20.02  20.12  20.55  20.91  22.35 
    Shareholders’ equity to assets 12.57% 12.70% 12.74% 12.68% 13.15%
    Tangible common equity ratio (non-GAAP)(1) 7.01  7.26  7.34  7.35  7.86 
    Leverage ratio 9.36  9.39  9.16  9.00  9.15 
    Common equity tier 1 capital ratio 10.21  10.64  10.74  10.78  11.18 
    Tier 1 risk-based capital ratio 11.01  11.47  11.60  11.67  12.10 
    Total risk-based capital ratio 14.63  15.15  15.34  15.51  16.14 

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

    Noninterest Income and Noninterest Expense

    (Dollars in thousands)Three Months Ended Twelve Months Ended
     Dec 31,
    2022    		Sep 30,
    2022    		Jun 30,
    2022    		Mar 31,
    2022    		Dec 31,
    2021    		 Dec 31,
    2022    		Dec 31,
    2021
    Noninterest income        
    Service charges on deposit accounts$10,445 $10,216$9,734 $9,562 $9,751  $39,957 $36,569
    Fees and commissions 4,470  4,148 4,668  3,982  3,885   17,268  15,732
    Insurance commissions 2,501  3,108 2,591  2,554  2,353   10,754  9,841
    Wealth management revenue 5,237  5,467 5,711  5,924  5,273   22,339  20,455
    Mortgage banking income 5,170  12,675 8,316  9,633  14,726   35,794  109,604
    Swap termination gains —  — —  —  4,676   —  4,676
    Net gains on sales of securities —  — —  —  49   —  2,170
    BOLI income 2,487  2,296 2,331  2,153  2,048   9,267  7,366
    Other 3,085  3,276 3,863  3,650  4,821   13,874  20,571
    Total noninterest income$33,395 $41,186$37,214 $37,458 $47,582  $149,253 $226,984
    Noninterest expense        
    Salaries and employee benefits$67,372 $66,463$65,580 $62,239 $62,523  $261,654 $280,627
    Data processing 3,521  3,526 3,590  4,263  5,346   14,900  21,726
    Net occupancy and equipment 11,122  11,266 11,155  11,276  11,177   44,819  46,837
    Other real estate owned (59) 34 (187) (241) (60)  (453) 253
    Professional fees 2,856  3,087 2,778  3,151  3,209   11,872  11,776
    Advertising and public relations 3,631  3,229 3,406  4,059  2,929   14,325  12,203
    Intangible amortization 1,195  1,251 1,310  1,366  1,424   5,122  6,042
    Communications 2,028  1,999 1,904  2,027  2,088   7,958  8,869
    Merger and conversion related expenses 1,100  — —  687  —   1,787  —
    Restructuring charges (benefit) —  — 1,187  (455) 61   732  368
    Debt prepayment penalty —  — —  —  6,123   —  6,123
    Other 8,816  10,719 7,471  5,733  6,295   32,739  35,002
    Total noninterest expense$101,582 $101,574$98,194 $94,105 $101,115  $395,455 $429,826

    Mortgage Banking Income

    (Dollars in thousands)Three Months Ended Twelve Months Ended
     Dec 31,
    2022    		Sep 30,
    2022    		Jun 30,
    2022    		Mar 31,
    2022    		Dec 31,
    2021    		 Dec 31,
    2022    		Dec 31,
    2021
    Gain on sales of loans, net$1,003$5,263$3,490$6,047$10,801  $15,803$82,399 
    Fees, net 1,849 2,405 3,064 3,053 4,320   10,371 17,161 
    Mortgage servicing income (loss), net 2,318 5,007 1,762 533 (395)  9,620 (3,517)
    MSR valuation adjustment — — — — —   — 13,561 
    Total mortgage banking income$5,170$12,675$8,316$9,633$14,726  $35,794$109,604 

    Balance Sheet

    (Dollars in thousands)As of
     Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021
    Assets     
    Cash and cash equivalents$575,992 $479,500 $1,010,468 $1,607,493 $1,877,965 
    Securities held to maturity, at amortized cost 1,324,040  1,353,502  488,851  487,194  416,357 
    Securities available for sale, at fair value 1,533,942  1,569,242  2,528,253  2,405,316  2,386,052 
    Loans held for sale, at fair value 110,105  144,642  196,598  280,464  453,533 
    Loans held for investment 11,578,304  11,105,004  10,603,744  10,313,459  10,020,914 
    Allowance for credit losses on loans (192,090) (174,356) (166,131) (166,468) (164,171)
    Loans, net 11,386,214  10,930,648  10,437,613  10,146,991  9,856,743 
    Premises and equipment, net 283,595  284,062  284,035  285,344  293,122 
    Other real estate owned 1,763  2,412  2,807  2,062  2,540 
    Goodwill and other intangibles 1,015,884  966,461  967,713  969,022  963,781 
    Bank-owned life insurance 373,808  371,650  371,298  369,344  287,359 
    Mortgage servicing rights 84,448  81,980  94,743  91,730  89,018 
    Other assets 298,385  287,000  235,722  218,797  183,841 
    Total assets$16,988,176 $16,471,099 $16,618,101 $16,863,757 $16,810,311 
          
    Liabilities and Shareholders’ Equity     
    Liabilities     
    Deposits:     
    Noninterest-bearing$4,558,756 $4,827,220 $4,741,397 $4,706,256 $4,718,124 
    Interest-bearing 8,928,210  8,604,904  9,022,532  9,284,641  9,187,600 
    Total deposits 13,486,966  13,432,124  13,763,929  13,990,897  13,905,724 
    Short-term borrowings 712,232  312,818  112,642  111,279  13,947 
    Long-term debt 428,133  426,821  431,553  435,416  471,209 
    Other liabilities 224,829  207,055  193,100  188,523  209,578 
    Total liabilities 14,852,160  14,378,818  14,501,224  14,726,115  14,600,458 
          
    Shareholders’ equity:     
    Preferred stock —  —  —  —  — 
    Common stock 296,483  296,483  296,483  296,483  296,483 
    Treasury stock (111,577) (111,577) (112,295) (114,050) (118,027)
    Additional paid-in capital 1,302,422  1,299,476  1,298,207  1,297,088  1,300,192 
    Retained earnings 857,725  823,951  789,880  762,690  741,648 
    Accumulated other comprehensive loss (209,037) (216,052) (155,398) (104,569) (10,443)
    Total shareholders’ equity 2,136,016  2,092,281  2,116,877  2,137,642  2,209,853 
    Total liabilities and shareholders’ equity$16,988,176 $16,471,099 $16,618,101 $16,863,757 $16,810,311 

    Net Interest Income and Net Interest Margin

    (Dollars in thousands)Three Months Ended
     December 31, 2022September 30, 2022December 31, 2021
     Average
    Balance    		Interest
    Income/
    Expense    		Yield/  
     Rate    		Average
    Balance    		Interest
    Income/
    Expense    		Yield/  
     Rate    		Average
    Balance    		Interest
    Income/
    Expense    		Yield/  
     Rate
    Interest-earning assets:         
    Loans held for investment$11,282,422$147,5195.19%$10,829,137$124,6144.57%$9,948,610$99,6703.98%
    Loans held for sale 117,082 1,6885.77% 143,837 2,0755.77% 498,724 3,6522.93%
    Taxable securities 2,657,248 13,1741.98% 2,773,924 12,4391.79% 2,245,249 7,2931.30%
    Tax-exempt securities(1) 447,287 2,6372.36% 449,927 2,6642.37% 392,700 2,5032.55%
    Total securities 3,104,535 15,8112.04% 3,223,851 15,1031.87% 2,637,949 9,7961.49%
    Interest-bearing balances with banks 269,975 2,7774.08% 663,218 3,4582.07% 1,522,433 5680.15%
    Total interest-earning assets 14,774,014 167,7954.51% 14,860,043 145,2503.89% 14,607,716 113,6863.09%
    Cash and due from banks 201,369   191,358   201,941  
    Intangible assets 967,005   967,154   964,575  
    Other assets 635,452   626,926   676,408  
    Total assets$16,577,840  $16,645,481  $16,450,640  
    Interest-bearing liabilities:         
    Interest-bearing demand(2)$6,018,679$12,5340.83%$6,462,940$6,0610.37%$6,460,178$3,4870.21%
    Savings deposits 1,093,997 5820.21% 1,134,665 1550.05% 1,045,784 1510.06%
    Brokered deposits 93,764 1,0474.43% — ——% — ——%
    Time deposits 1,324,042 3,1490.94% 1,240,439 1,0250.33% 1,434,162 2,4180.67%
    Total interest-bearing deposits 8,530,482 17,3120.81% 8,838,044 7,2410.33% 8,940,124 6,0560.27%
    Borrowed funds 893,705 9,9184.42% 572,376 5,5743.88% 434,546 4,3814.03%
    Total interest-bearing liabilities 9,424,187 27,2301.15% 9,410,420 12,8150.54% 9,374,670 10,4370.44%
    Noninterest-bearing deposits 4,805,014   4,867,314   4,633,885  
    Other liabilities 209,544   194,339   210,404  
    Shareholders’ equity 2,139,095   2,173,408   2,231,681  
    Total liabilities and shareholders’ equity$16,577,840  $16,645,481  $16,450,640  
    Net interest income/ net interest margin $140,5653.78% $132,4353.54% $103,2492.81%
    Cost of funding  0.76%  0.36%  0.30%
    Cost of total deposits  0.52%  0.21%  0.18%

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

    Net Interest Income and Net Interest Margin, continued

    (Dollars in thousands)Twelve Months Ended
     December 31, 2022December 31, 2021
     Average
    Balance    		Interest
    Income/
    Expense    		Yield/  
     Rate    		Average
    Balance    		Interest
    Income/
    Expense    		Yield/  
     Rate
    Interest-earning assets:      
    Loans held for investment$10,677,995$476,7464.46%$10,310,070$427,2964.15%
    Loans held for sale 203,981 9,2124.52% 454,727 12,6322.78%
    Taxable securities(1) 2,654,621 44,7501.69% 1,691,531 24,3701.44%
    Tax-exempt securities 446,895 10,6552.38% 335,399 9,4182.81%
    Total securities 3,101,516 55,4051.79% 2,026,930 33,7881.67%
    Interest-bearing balances with banks 846,768 8,8531.05% 1,263,364 1,6880.13%
    Total interest-earning assets 14,830,260 550,2163.71% 14,055,091 475,4043.38%
    Cash and due from banks 201,419   199,705  
    Intangible assets 967,018   966,733  
    Other assets 639,155   684,457  
    Total assets$16,637,852  $15,905,986  
    Interest-bearing liabilities:      
    Interest-bearing demand(2)$6,420,905$25,8400.40%$6,177,944$15,3080.25%
    Savings deposits 1,116,013 1,0230.09% 976,616 6980.07%
    Brokered deposits 23,634 1,0474.43% — ——%
    Time deposits 1,310,398 7,2980.56% 1,539,763 12,9700.84%
    Total interest-bearing deposits 8,870,950 35,2080.40% 8,694,323 28,9760.33%
    Borrowed funds 624,887 25,3044.05% 470,993 15,7083.34%
    Total interest-bearing liabilities 9,495,837 60,5120.64% 9,165,316 44,6840.49%
    Noninterest-bearing deposits 4,760,432   4,310,834  
    Other liabilities 196,980   220,427  
    Shareholders’ equity 2,184,603   2,209,409  
    Total liabilities and shareholders’ equity$16,637,852  $15,905,986  
    Net interest income/ net interest margin $489,7043.30% $430,7203.07%
    Cost of funding  0.42%  0.33%
    Cost of total deposits  0.26%  0.22%

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

    Supplemental Margin Information

    (Dollars in thousands)Three Months Ended Twelve Months Ended
     Dec 31, 2022Sep 30, 2022Dec 31, 2021 Dec 31, 2022Dec 31, 2021
    Earning asset mix:      
    Loans held for investment, excluding Paycheck Protection Program (“PPP”) loans (non-GAAP)(1) 76.33% 72.83% 67.68%  71.90% 70.16%
    PPP loans 0.03  0.04  0.43   0.10  3.19 
    Loans held for sale 0.79  0.97  3.41   1.38  3.24 
    Securities 21.01  21.69  18.06   20.91  14.42 
    Interest-bearing balances with banks 1.84  4.47  10.42   5.71  8.99 
    Total 100.00% 100.00% 100.00%  100.00% 100.00%
           
    Funding sources mix:      
    Noninterest-bearing demand 33.77% 34.09% 33.08%  33.39% 32.00%
    Interest-bearing demand 42.30  45.27  46.11   45.04  45.84 
    Savings 7.69  7.95  7.47   7.83  7.25 
    Brokered deposits 0.66  —  —   0.17  — 
    Time deposits 9.31  8.69  10.24   9.19  11.42 
    Borrowed funds 6.27  4.00  3.10   4.38  3.49 
    Total 100.00% 100.00% 100.00%  100.00% 100.00%
           
    Net interest income collected on problem loans$161 $78 $578  $2,949 $4,412 
    Total accretion on purchased loans 625  1,317  2,187   5,198  10,783 
    Total impact on net interest income$786 $1,395 $2,765  $8,147 $15,195 
    Impact on net interest margin 0.02% 0.04% 0.08%  0.05% 0.11%
    Impact on loan yield 0.03% 0.05% 0.11%  0.08% 0.15%
           
    Interest income on PPP loans$21 $5 $485  $719 $24,794 
    PPP impact on net interest margin —% —% —%  —% 0.08%
    PPP impact on loan yield —% —% —%  —% 0.06%

    (1) This is a non-GAAP financial measure. 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.

    Loan Portfolio

    (Dollars in thousands)As of
     Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021
    Loan Portfolio:     
    Commercial, financial, agricultural$1,669,051$1,507,615$1,489,889$1,437,225$1,364,879
    Lease financing 115,013 103,357 101,350 89,842 76,125
    Real estate - construction 1,330,337 1,215,056 1,126,363 1,222,052 1,104,896
    Real estate - 1-4 family mortgages 3,216,263 3,127,889 3,030,083 2,840,979 2,724,246
    Real estate - commercial mortgages 5,118,063 5,016,665 4,717,513 4,577,864 4,549,037
    Installment loans to individuals 124,745 128,946 131,163 137,115 143,340
    Subtotal 11,573,472 11,099,528 10,596,361 10,305,077 9,962,523
    PPP loans 4,832 5,476 7,383 8,382 58,391
    Total loans$11,578,304$11,105,004$10,603,744$10,313,459$10,020,914

    Credit Quality and Allowance for Credit Losses on Loans

    (Dollars in thousands)As of
     Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021
    Nonperforming Assets:     
    Nonaccruing loans$56,545 $54,278 $43,897 $51,995 $49,364 
    Loans 90 days or more past due 331  1,587  617  247  1,441 
    Total nonperforming loans 56,876  55,865  44,514  52,242  50,805 
    Other real estate owned 1,763  2,412  2,807  2,062  2,540 
    Total nonperforming assets 58,639  58,277  47,321  54,304  53,345 
    Allowance for credit losses on loans$192,090 $174,356 $166,131 $166,468 $164,171 
    Net loan charge-offs$2,566 $1,575 $2,337 $851 $5,367 
    Annualized net loan charge-offs / average loans 0.09% 0.06% 0.09% 0.03% 0.21%
    Nonperforming loans / total loans 0.49  0.50  0.42  0.51  0.51 
    Nonperforming assets / total assets 0.35  0.35  0.28  0.32  0.32 
    Allowance for credit losses on loans / total loans 1.66  1.57  1.57  1.61  1.64 
    Allowance for credit losses on loans / nonperforming loans 337.73  312.10  373.21  318.65  323.14 

    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 25, 2023.

    The webcast is accessible through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=4MTPtQZd. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2022 Fourth Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.

    The webcast will be archived on www.renasant.com after the call and will remain accessible for one year. A replay is accessible via telephone by dialing 1-877-344-7529 in the United States and entering conference number 8052042 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 8, 2023.

    ABOUT RENASANT CORPORATION:
    Renasant Corporation is the parent of Renasant Bank, a 119-year-old financial services institution. Renasant has assets of approximately $17.0 billion and operates 198 banking, lending, mortgage, wealth management and insurance offices throughout the Southeast as well as offering factoring and asset-based lending on a nationwide basis.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

    This press release may contain, or incorporate by reference, statements about Renasant Corporation that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “projects,” “anticipates,” “intends,” “estimates,” “plans,” “potential,” “focus,” “possible,” “may increase,” “may fluctuate,” “will likely result,” and similar expressions, or future or conditional verbs such as “will,” “should,” “would” and “could,” are generally forward-looking in nature and not historical facts. Forward-looking statements include information about the Company’s future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. The Company’s management believes these forward-looking statements are reasonable, but they are all inherently subject to significant business, economic and competitive risks and uncertainties, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements, and such differences may be material. Prospective investors are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and, accordingly, investors should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

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

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

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

    NON-GAAP FINANCIAL MEASURES:

    In addition to results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this press release and the presentation slides furnished to the SEC on the same Form 8-K as this release contain non-GAAP financial measures, including, without limitation, (i) core loan yield, (ii) core net interest income and margin, (iii) adjusted pre-provision net revenue, (iv) adjusted net income, (v) adjusted diluted earnings per share, (vi) tangible book value per share, (vii) the tangible common equity ratio, (viii) loans held for investment excluding PPP loans, (ix) certain performance ratios (namely, the ratio of adjusted pre-provision net revenue to average assets, the adjusted return on average assets and on average equity, and the return on average tangible assets and on average tangible common equity (including on an as-adjusted basis)), and (x) the adjusted efficiency ratio.

    These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and/or certain charges (such as, among others, merger and conversion expenses, COVID-19 related expenses and expenses related to the voluntary reimbursement of certain re-presentment NSF fees) with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof or, with respect to core loan yield, to exclude the Company’s PPP loans. With respect to COVID-19 related expenses in particular, management added these expenses as a charge to exclude when calculating non-GAAP financial measures because the expenses included within this line item are readily quantifiable and possess the same characteristics with respect to management’s inability to accurately predict the timing or amount thereof as the other charges excluded when calculating non-GAAP financial measures. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy; with respect to the core loan yield, management excludes PPP loans, which bear an interest rate fixed by Small Business Administration (“SBA”) regulations and are both forgivable and guaranteed by the SBA, to more clearly measure loan yields affected by competitive factors and potential loss in the Company’s loan portfolio and the coverage therefor. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible, charges such as debt prepayment penalties, restructuring charges and COVID-19 related expenses, and the amount of PPP loans can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution’s regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company’s results to information provided in other regulatory reports and the results of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below under the caption “Non-GAAP Reconciliations”.

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

    Non-GAAP Reconciliations

    (Dollars in thousands, except per share data)Three Months Ended Twelve Months Ended
     Dec 31,
    2022    		Sep 30,
    2022    		Jun 30,
    2022    		Mar 31,
    2022    		Dec 31,
    2021    		 Dec 31,
    2022    		Dec 31,
    2021
    Adjusted Pre-Provision Net Revenue (“PPNR”)      
    Net income (GAAP)$46,276 $46,567 $39,678 $33,547 $37,054  $166,068 $175,892 
    Income taxes 12,885  13,563  10,857  7,935  11,363   45,240  46,935 
    Provision for (recovery of) credit losses (including unfunded commitments) 10,671  9,800  2,450  950  (768)  23,871  (2,168)
    Pre-provision net revenue (non-GAAP)$69,832 $69,930 $52,985 $42,432 $47,649  $235,179 $220,659 
    Merger and conversion expense 1,100  —  —  687  —   1,787  — 
    Debt prepayment penalties —  —  —  —  6,123   —  6,123 
    Swap termination gains —  —  —  —  (4,676)  —  (4,676)
    Gain on sale of MSR —  (2,960) —  —  —   (2,960) — 
    MSR valuation adjustment —  —  —  —  —   —  (13,561)
    Restructuring charges (benefit) —  —  1,187  (455) 61   732  368 
    Voluntary reimbursement of certain re-presentment NSF fees 1,255  —  —  —  —   1,255  — 
    COVID-19 related expenses(1) —  —  —  —  33   —  1,511 
    Adjusted pre-provision net revenue (non-GAAP)$72,187 $66,970 $54,172 $42,664 $49,190  $235,993 $210,424 
             
    Adjusted Net Income and Adjusted Tangible Net Income      
    Net income (GAAP)$46,276 $46,567 $39,678 $33,547 $37,054  $166,068 $175,892 
    Amortization of intangibles 1,195  1,251  1,310  1,366  1,424   5,122  6,042 
    Tax effect of adjustments noted above(2) (260) (265) (291) (303) (335)  (1,119) (1,354)
    Tangible net income (non-GAAP)$47,211 $47,553 $40,697 $34,610 $38,143  $170,071 $180,580 
             
    Net income (GAAP)$46,276 $46,567 $39,678 $33,547 $37,054  $166,068 $175,892 
    Merger and conversion expense 1,100  —  —  687  —   1,787  — 
    Debt prepayment penalties —  —  —  —  6,123   —  6,123 
    Swap termination gain —  —  —  —  (4,676)  —  (4,676)
    Gain on sale of MSR —  (2,960) —  —  —   (2,960) — 
    MSR valuation adjustment —  —  —  —  —   —  (13,561)
    Restructuring charges (benefit) —  —  1,187  (455) 61   732  368 
    Initial provision for acquisitions 2,820  —  —  —  —   2,820  — 
    Voluntary reimbursement of certain re-presentment NSF fees 1,255  —  —  —  —   1,255  — 
    COVID-19 related expenses(1) —  —  —  —  33   —  1,511 
    Tax effect of adjustments noted above(2) (1,127) 626  (264) (51) (363)  (816) 2,294 
    Adjusted net income (non-GAAP)$50,324 $44,233 $40,601 $33,728 $38,232  $168,886 $167,951 
    Amortization of intangibles 1,195  1,251  1,310  1,366  1,424   5,122  6,042 
    Tax effect of adjustments noted above(2) (260) (265) (291) (303) (335)  (1,119) (1,354)
    Adjusted tangible net income (non-GAAP)$51,259 $45,219 $41,620 $34,791 $39,321  $172,889 $172,639 
    Tangible Assets and Tangible Shareholders’ Equity      
    Average shareholders’ equity (GAAP)$2,139,095 $2,173,408 $2,177,537 $2,249,667 $2,231,681  $2,184,603 $2,209,409 
    Average intangible assets 967,005  967,154  968,441  965,430  964,575   967,018  966,733 
    Average tangible shareholders’ equity (non-GAAP)$1,172,090 $1,206,254 $1,209,096 $1,284,237 $1,267,106  $1,217,585 $1,242,676 
             
    Average assets (GAAP)$16,577,840 $16,645,481 $16,631,290 $16,697,264 $16,450,640  $16,637,852 $15,905,986 
    Average intangible assets 967,005  967,154  968,441  965,430  964,575   967,018  966,733 
    Average tangible assets (non-GAAP)$15,610,835 $15,678,327 $15,662,849 $15,731,834 $15,486,065  $15,670,834 $14,939,253 
             
    Shareholders’ equity (GAAP)$2,136,016 $2,092,281 $2,116,877 $2,137,642 $2,209,853  $2,136,016 $2,209,853 
    Intangible assets 1,015,884  966,461  967,713  969,022  963,781   1,015,884  963,781 
    Tangible shareholders’ equity (non-GAAP)$1,120,132 $1,125,820 $1,149,164 $1,168,620 $1,246,072  $1,120,132 $1,246,072 
             
    Total assets (GAAP)$16,988,176 $16,471,099 $16,618,101 $16,863,757 $16,810,311  $16,988,176 $16,810,311 
    Intangible assets 1,015,884  966,461  967,713  969,022  963,781   1,015,884  963,781 
    Total tangible assets (non-GAAP)$15,972,292 $15,504,638 $15,650,388 $15,894,735 $15,846,530  $15,972,292 $15,846,530 
             
    Adjusted Performance Ratios        
    Return on average assets (GAAP) 1.11% 1.11% 0.96% 0.81% 0.89%  1.00% 1.11%
    Adjusted return on average assets (non-GAAP) 1.20% 1.05% 0.98% 0.82% 0.92%  1.02% 1.06%
    Return on average tangible assets (non-GAAP) 1.20% 1.20% 1.04% 0.89% 0.98%  1.09% 1.21%
    Adjusted pre-provision net revenue to average assets (non-GAAP) 1.73% 1.60% 1.31% 1.04% 1.19%  1.42% 1.32%
    Adjusted return on average tangible assets (non-GAAP) 1.30% 1.14% 1.07% 0.90% 1.01%  1.10% 1.16%
    Return on average equity (GAAP) 8.58% 8.50% 7.31% 6.05% 6.59%  7.60% 7.96%
    Adjusted return on average equity (non-GAAP) 9.33% 8.07% 7.48% 6.08% 6.80%  7.73% 7.60%
    Return on average tangible equity (non-GAAP) 15.98% 15.64% 13.50% 10.93% 11.94%  13.97% 14.53%
    Adjusted return on average tangible equity (non-GAAP) 17.35% 14.87% 13.81% 10.99% 12.31%  14.20% 13.89%
             
    Adjusted Diluted Earnings Per Share      
    Average diluted shares outstanding 56,335,446  56,248,720  56,182,845  56,081,863  56,105,050   56,214,230  56,424,484 
             
    Diluted earnings per share (GAAP)$0.82 $0.83 $0.71 $0.60 $0.66  $2.95 $3.12 
    Adjusted diluted earnings per share (non-GAAP)$0.89 $0.79 $0.72 $0.60 $0.68  $3.00 $2.98 
             
    Tangible Book Value Per Share        
    Shares outstanding 55,953,104  55,953,104  55,932,017  55,880,666  55,756,233   55,953,104  55,756,233 
             
    Book value per share (GAAP)$38.18 $37.39 $37.85 $38.25 $39.63  $38.18 $39.63 
    Tangible book value per share (non-GAAP)$20.02 $20.12 $20.55 $20.91 $22.35  $20.02 $22.35 
             
    Tangible Common Equity Ratio        
    Shareholders’ equity to assets (GAAP) 12.57% 12.70% 12.74% 12.68% 13.15%  12.57% 13.15%
    Tangible common equity ratio (non-GAAP) 7.01% 7.26% 7.34% 7.35% 7.86%  7.01% 7.86%
    Adjusted Efficiency Ratio        
    Net interest income (FTE) (GAAP)$140,565 $132,435 $115,321 $101,383 $103,249  $489,704 $430,720 
             
    Total noninterest income (GAAP)$33,395 $41,186 $37,214 $37,458 $47,582  $149,253 $226,984 
    MSR valuation adjustment —  —  —  —  —   —  13,561 
    Gain on sale of MSR —  2,960  —  —  —   2,960  — 
    Swap termination gains —  —  —  —  4,676   —  4,676 
    Securities gains —  —  —  —  49   —  2,170 
    Total adjusted noninterest income (non-GAAP)$33,395 $38,226 $37,214 $37,458 $42,857  $146,293 $206,577 
             
    Noninterest expense (GAAP)$101,582 $101,574 $98,194 $94,105 $101,115  $395,455 $429,826 
    Amortization of intangibles 1,195  1,251  1,310  1,366  1,424   5,122  6,042 
    Merger and conversion expense 1,100  —  —  687  —   1,787  — 
    Debt prepayment penalty —  —  —  —  6,123   —  6,123 
    Restructuring charges (benefit) —  —  1,187  (455) 61   732  368 
    Voluntary reimbursement of certain re-presentment NSF fees 1,255  —  —  —  —   1,255  — 
    Provision (recovery) of unfunded commitments 183  —  450  (550) (300)  83  (500)
    COVID-19 related expenses(1) —  —  —  —  33   —  1,511 
    Total adjusted noninterest expense (non-GAAP)$97,849 $100,323 $95,247 $93,057 $93,774  $386,476 $416,282 
             
    Efficiency ratio (GAAP) 58.39% 58.50% 64.37% 67.78% 67.04%  61.89% 65.35%
    Adjusted efficiency ratio (non-GAAP) 56.25% 58.78% 62.44% 67.02% 64.18%  60.77% 65.32%
             
    Core Net Interest Income and Core Net Interest Margin      
    Net interest income (FTE) (GAAP)$140,565 $132,435 $115,321 $101,383 $103,249  $489,704 $430,720 
    Net interest income collected on problem loans 161  78  2,276  434  577   2,949  4,412 
    Accretion recognized on purchased loans 625  1,317  2,021  1,235  2,187   5,198  10,783 
    Interest income recognized on PPP loans 21  5  74  619  485   719  24,794 
    Non-core net interest income$807 $1,400 $4,371 $2,288 $3,249  $8,866 $39,989 
    Core net interest income (FTE) (non-GAAP)$139,758 $131,035 $110,950 $99,095 $99,999  $480,838 $390,731 
             
    Average earning assets (GAAP)$14,774,014 $14,860,043 $14,845,199 $14,841,146 $14,607,716  $14,830,260 $14,055,091 
    Average PPP loans 4,940  6,647  7,863  39,506  62,726   14,619  448,959 
    Average earning assets excluding PPP loans (non-GAAP)$14,769,074 $14,853,396 $14,837,336 $14,801,640 $14,544,990  $14,815,641 $13,606,132 
             
    Net interest margin (GAAP) 3.78% 3.54% 3.11% 2.76% 2.81%  3.30% 3.07%
    Core net interest margin (non-GAAP) 3.76% 3.50% 3.00% 2.71% 2.73%  3.25% 2.87%
    Core Loan Yield        
    Loan interest income (FTE) (GAAP)$147,519 $124,614 $107,612 $97,001 $99,670  $476,746 $427,296 
    Net interest income collected on problem loans 161  78  2,276  434  578   2,949  4,412 
    Accretion recognized on purchased loans 625  1,317  2,021  1,235  2,187   5,198  10,783 
    Interest income recognized on PPP loans 21  5  74  619  485   719  24,794 
    Core loan interest income (FTE) (non-GAAP)$146,712 $123,214 $103,241 $94,713 $96,420  $467,880 $387,307 
             
    Average loans (GAAP)$11,282,422 $10,829,137 $10,477,036 $10,108,511 $9,948,610  $10,677,995 $10,310,070 
    Average PPP loans 4,940  6,647  7,863  39,506  62,726   14,619  448,959 
    Average loans excluding PPP loans (non-GAAP)$11,277,482 $10,822,490 $10,469,173 $10,069,005 $9,885,884  $10,663,376 $9,861,111 
             
    Loan yield (GAAP) 5.19% 4.57% 4.12% 3.88% 3.98%  4.46% 4.15%
    Core loan yield (non-GAAP) 5.16% 4.52% 3.96% 3.82% 3.87%  4.39% 3.93%
             
    Adjusted Asset Quality Ratios        
    Classified loans$200,249 $193,844 $185,267 $178,015 $160,790  $200,249 $160,790 
    Special Mention loans 86,172  69,883  87,476  76,949  115,496   86,172  115,496 
    Criticized loans(3)$286,421 $263,727 $272,743 $254,964 $276,286  $286,421 $276,286 
    Criticized loans / total loans (GAAP) 2.47% 2.37% 2.57% 2.47% 2.76%  2.47% 2.76%

    (1) Primarily consists of employee overtime and employee benefit accruals directly related to the response to the COVID-19 pandemic and federal legislation enacted to address the pandemic, such as the CARES Act, and expenses associated with supplying branches with protective equipment and sanitation supplies (such as floor markings and cautionary signage for branches, face coverings and hand sanitizer) as well as more frequent and rigorous branch cleaning.
    (2) Tax effect is calculated based on the respective periods’ effective tax rate excluding the impact of discrete items.
    (3) Criticized loans include loans in risk rating classifications of classified and special mention.

    Contacts:For Media:For Financials:
     John S. OxfordJames C. Mabry IV
     Senior Vice PresidentExecutive Vice President
     Chief Marketing OfficerChief Financial Officer
     (662) 680-1219(662) 680-1281

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