rnst-20240123
0000715072false00007150722023-10-242023-10-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

January 23, 2024
Date of report (Date of earliest event reported)

RENASANT CORPORATION
(Exact name of registrant as specified in its charter)
Mississippi
001-13253
64-0676974
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)

209 Troy Street, Tupelo, Mississippi 38804-4827
(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: (662) 680-1001
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $5.00 par value per shareRNSTThe New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.





Item 2.02. Results of Operations and Financial Condition.
 
On January 23, 2024, Renasant Corporation (“Renasant”) issued a press release announcing earnings for the fourth quarter of 2023. The press release is furnished as Exhibit 99.1 to this Form 8-K.

Item 7.01. Regulation FD Disclosure

On January 23, 2024, Renasant also made available presentation materials (the “Presentation”) prepared for use with Renasant’s earnings conference call on January 24, 2024. The Presentation is attached hereto and incorporated herein as Exhibit 99.2.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01, including Exhibit 99.2, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.

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, factoring and 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 the repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of our investment securities portfolio; (xi) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xii) changes in the sources and costs of the capital we use to make loans and otherwise fund our operations, due to deposit outflows, changes in the



mix of deposits and the cost and availability of borrowings; (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 deposit and 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 Renasant’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 Renasant’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.

Renasant 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.

Item 9.01.    Financial Statements and Exhibits.
    (d)    The following exhibits are furnished herewith:
    Exhibit No.    Description
99.1    Press release issued by Renasant Corporation announcing earnings for the fourth quarter of 2023
99.2    Presentation materials for Renasant Fourth Quarter 2023 Earnings Call
104    The cover page of Renasant Corporation's Form 8-K is formatted in Inline XBRL.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RENASANT CORPORATION
Date: January 23, 2024
By:
/s/ C. Mitchell Waycaster
C. Mitchell Waycaster
Chief Executive Officer




Document

https://cdn.kscope.io/efb6ba6c8fc12b404100edda14455254-renasantcorporationlogo-fua.jpg
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

RENASANT CORPORATION ANNOUNCES
EARNINGS FOR THE FOURTH QUARTER OF 2023

TUPELO, MISSISSIPPI (January 23, 2024) - Renasant Corporation (NYSE: RNST) (the “Company”) today announced earnings results for the fourth quarter of 2023.

(Dollars in thousands, except earnings per share)Three Months EndedTwelve Months Ended
Dec 31, 2023Sep 30, 2023Dec 31, 2022Dec 31, 2023Dec 31, 2022
Net income and earnings per share:
Net income$28,124$41,833$46,276$144,678$166,068
After-tax loss on sale of securities(15,711)— — (33,927)— 
Basic EPS0.500.750.832.582.97
Diluted EPS0.500.740.822.562.95
Impact to diluted EPS from losses on the sale of securities (including impairments)0.28— — 0.60— 
Adjusted diluted EPS (Non-GAAP)(1)
0.760.740.893.153.00

“The quarter exhibited solid results across the company. We continue to strengthen the balance sheet and remain committed to improving operating leverage” remarked C. Mitchell Waycaster, Chief Executive Officer of the Company. “Going into 2024, Renasant is well positioned to continue organic growth and pursue our strategic objectives.”

Quarterly Highlights

Earnings
Net income for the fourth quarter of 2023 was $28.1 million; diluted EPS was $0.50 and adjusted diluted EPS (Non-GAAP)(1) was $0.76
Net interest income (fully tax equivalent) for the fourth quarter of 2023 was $128.6 million, down $1.5 million on a linked quarter basis
For the fourth quarter of 2023, net interest margin was 3.33%, down 3 basis points on a linked quarter basis
Cost of total deposits was 2.17% for the fourth quarter of 2023, up 19 basis points on a linked quarter basis
1



Noninterest income decreased $17.8 million on a linked quarter basis. The Company determined to sell a portion of its available-for-sale securities portfolio in the fourth quarter of 2023, and as a result the Company recognized pre-tax non-credit related impairment charges of $19.4 million. The impaired securities were sold in the first quarter of 2024 and generated $177 million in proceeds. Noninterest income for the fourth quarter of 2023 also included a one-time payment of $2.3 million related to Renasant's participation in a recovery agreement, which it assumed as part of a previous acquisition
The Company extinguished $3.3 million of its subordinated debt, which produced a gain of $0.6 million in the fourth quarter of 2023
Mortgage banking income decreased $0.9 million on a linked quarter basis. The mortgage division generated $0.3 billion in interest rate lock volume in the fourth quarter of 2023, a decrease of $0.2 billion. Gain on sale margin was 1.14% for the fourth quarter of 2023, down 41 basis points on a linked quarter basis
The Company realized a gain of $0.5 million in the fourth quarter of 2023 related to a holdback on previously sold mortgage servicing rights (“MSR”) assets
Noninterest expense increased $3.5 million on a linked quarter basis. Higher salaries and benefits and an FDIC deposit insurance special assessment of $2.7 million contributed to the increase

Balance Sheet
Loans increased $183.2 million on a linked quarter basis, representing 6.0% annualized net loan growth
Securities decreased $10.0 million on a linked quarter basis due to net cash outflows of $51.0 million for the quarter. As previously mentioned, the Company recorded an impairment charge of $19.4 million on a portion of its securities classified as available-for-sale. The remaining available-for-sale portfolio experienced a positive fair value adjustment of $42.3 million
Deposits at December 31, 2023 decreased $80.3 million on a linked quarter basis. Brokered deposits decreased $295.9 million on a linked quarter basis to $461.4 million at December 31, 2023. Noninterest bearing deposits decreased $150.5 million on a linked quarter basis and represented 25.5% of total deposits at December 31, 2023

Capital and Liquidity
Book value per share and tangible book value per share (non-GAAP)(1) increased 2.9% and 5.3%, respectively, on a linked quarter basis
The Company has a $100 million stock repurchase program that is in effect through October 2024; there was no buyback activity during the fourth quarter of 2023

Credit Quality
The Company recorded a provision for credit losses of $2.5 million for the fourth quarter of 2023
The ratio of allowance for credit losses on loans to total loans was 1.61% at December 31, 2023
The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 286.26% at December 31, 2023, compared to 282.24% at September 30, 2023
Net loan charge-offs for the fourth quarter of 2023 were $1.7 million, or 0.06% of average loans on an annualized basis
Nonperforming loans to total loans decreased to 0.56% at December 31, 2023 compared to 0.58% at September 30, 2023 and criticized loans (which include classified and special mention loans) to total loans decreased to 2.16% at December 31, 2023, compared to 2.27% at September 30, 2023








(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.
2


Income Statement
(Dollars in thousands, except per share data)Three Months EndedTwelve Months Ended
Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Dec 31, 2023Dec 31, 2022
Interest income
Loans held for investment$188,535 $181,129 $173,198 $161,787 $145,360 $704,649 $470,698 
Loans held for sale3,329 3,751 2,990 1,737 1,688 11,807 9,212 
Securities10,728 10,669 14,000 15,091 15,241 50,488 53,047 
Other7,839 10,128 6,978 5,430 2,777 30,375 8,853 
Total interest income210,431 205,677 197,166 184,045 165,066 797,319 541,810 
Interest expense
Deposits77,168 70,906 51,391 32,866 17,312 232,331 35,208 
Borrowings7,310 7,388 15,559 15,404 9,918 45,661 25,304 
Total interest expense84,478 78,294 66,950 48,270 27,230 277,992 60,512 
Net interest income125,953 127,383 130,216 135,775 137,836 519,327 481,298 
Provision for credit losses
Provision for loan losses2,518 5,315 3,000 7,960 10,488 18,793 23,788 
Provision for (recovery of) unfunded commitments— (700)(1,000)(1,500)183 (3,200)83 
Total provision for credit losses2,518 4,615 2,000 6,460 10,671 15,593 23,871 
Net interest income after provision for credit losses123,435 122,768 128,216 129,315 127,165 503,734 457,427 
Noninterest income20,356 38,200 17,226 37,293 33,395 113,075 149,253 
Noninterest expense111,880 108,369 110,165 109,208 101,399 439,622 395,372 
Income before income taxes31,911 52,599 35,277 57,400 59,161 177,187 211,308 
Income taxes3,787 10,766 6,634 11,322 12,885 32,509 45,240 
Net income$28,124 $41,833 $28,643 $46,078 $46,276 $144,678 $166,068 
Adjusted net income (non-GAAP)(1)
$42,887 $41,833 $46,728 $46,078 $50,324 $177,657 $168,886 
Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1)
$52,614 $57,214 $59,715 $63,860 $72,187 $233,403 $235,993 
Basic earnings per share$0.50 $0.75 $0.51 $0.82 $0.83 $2.58 $2.97 
Diluted earnings per share0.50 0.74 0.51 0.82 0.82 2.56 2.95 
Adjusted diluted earnings per share (non-GAAP)(1)
0.76 0.74 0.83 0.82 0.89 3.15 3.00 
Average basic shares outstanding56,141,628 56,138,618 56,107,881 56,008,741 55,953,104 56,099,689 55,904,579 
Average diluted shares outstanding56,611,217 56,523,887 56,395,653 56,270,219 56,335,446 56,448,163 56,214,230 
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.
3


Performance Ratios
Three Months EndedTwelve Months Ended
Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Dec 31, 2023Dec 31, 2022
Return on average assets0.65 %0.96 %0.66 %1.09 %1.11 %0.84 %1.00 %
Adjusted return on average assets (non-GAAP)(1)
0.99 0.96 1.08 1.09 1.20 1.03 1.02 
Return on average tangible assets (non-GAAP)(1)
0.71 1.05 0.73 1.19 1.20 0.92 1.09 
Adjusted return on average tangible assets (non-GAAP)(1)
1.08 1.05 1.18 1.19 1.30 1.12 1.10 
Return on average equity4.93 7.44 5.18 8.55 8.58 6.50 7.60 
Adjusted return on average equity (non-GAAP)(1)
7.53 7.44 8.45 8.55 9.33 7.99 7.73 
Return on average tangible equity (non-GAAP)(1)
9.26 13.95 9.91 16.29 15.98 12.29 13.97 
Adjusted return on average tangible equity (non-GAAP)(1)
13.94 13.95 15.94 16.29 17.35 15.02 14.20 
Efficiency ratio (fully taxable equivalent)75.11 64.38 73.29 62.11 58.29 68.33 61.88 
Adjusted efficiency ratio (non-GAAP)(1)
66.18 63.60 62.98 61.30 56.25 63.48 60.77 
Dividend payout ratio44.00 29.33 43.14 26.83 26.51 34.11 29.63 

Capital and Balance Sheet Ratios
As of
Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022
Shares outstanding56,142,207 56,140,713 56,132,478 56,073,658 55,953,104 
Market value per share$33.68 $26.19 $26.13 $30.58 $37.59 
Book value per share40.92 39.78 39.35 39.01 38.18 
Tangible book value per share (non-GAAP)(1)
22.92 21.76 21.30 20.92 20.02 
Shareholders’ equity to assets13.23 %13.00 %12.82 %12.52 %12.57 %
Tangible common equity ratio (non-GAAP)(1)
7.87 7.55 7.37 7.13 7.01 
Leverage ratio9.62 9.48 9.22 9.18 9.36 
Common equity tier 1 capital ratio10.52 10.46 10.30 10.19 10.21 
Tier 1 risk-based capital ratio11.30 11.25 11.09 10.98 11.01 
Total risk-based capital ratio14.93 14.91 14.76 14.68 14.63 

(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.
4


Noninterest Income and Noninterest Expense
(Dollars in thousands)Three Months EndedTwelve Months Ended
Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Dec 31, 2023Dec 31, 2022
Noninterest income
Service charges on deposit accounts$10,603 $9,743 $9,733 $9,120 $10,445 $39,199 $39,957 
Fees and commissions4,130 4,108 4,987 4,676 4,470 17,901 17,268 
Insurance commissions2,583 3,264 2,809 2,446 2,501 11,102 10,754 
Wealth management revenue5,668 5,986 5,338 5,140 5,237 22,132 22,339 
Mortgage banking income6,592 7,533 9,771 8,517 5,170 32,413 35,794 
Net losses on sales of securities (including impairments)(19,352)— (22,438)— — (41,790)— 
Gain on extinguishment of debt620 — — — — 620 — 
BOLI income2,589 2,469 2,402 3,003 2,487 10,463 9,267 
Other6,923 5,097 4,624 4,391 3,085 21,035 13,874 
Total noninterest income$20,356 $38,200 $17,226 $37,293 $33,395 $113,075 $149,253 
Noninterest expense
Salaries and employee benefits$71,841 $69,458 $70,637 $69,832 $67,372 $281,768 $261,654 
Data processing3,971 3,907 3,684 3,633 3,521 15,195 14,900 
Net occupancy and equipment11,653 11,548 11,865 11,405 11,122 46,471 44,819 
Other real estate owned306 (120)51 30 (59)267 (453)
Professional fees2,854 3,338 4,012 3,467 2,856 13,671 11,872 
Advertising and public relations3,084 3,474 3,482 4,686 3,631 14,726 14,325 
Intangible amortization1,274 1,311 1,369 1,426 1,195 5,380 5,122 
Communications2,026 2,006 2,226 1,980 2,028 8,238 7,958 
Merger and conversion related expenses— — — — 1,100 — 1,787 
Restructuring charges— — — — — — 732 
Other14,871 13,447 12,839 12,749 8,633 53,906 32,656 
Total noninterest expense$111,880 $108,369 $110,165 $109,208 $101,399 $439,622 $395,372 

Mortgage Banking Income
(Dollars in thousands)Three Months EndedTwelve Months Ended
Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Dec 31, 2023Dec 31, 2022
Gain on sales of loans, net$1,860 $3,297 $4,646 $4,770 $1,003 $14,573 $15,803 
Fees, net2,010 2,376 2,859 1,806 1,849 9,051 10,371 
Mortgage servicing income, net2,722 1,860 2,266 1,941 2,318 8,789 9,620 
Total mortgage banking income$6,592 $7,533 $9,771 $8,517 $5,170 $32,413 $35,794 
5


Balance Sheet
(Dollars in thousands)As of
Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022
Assets
Cash and cash equivalents$801,351 $741,156 $946,899 $847,697 $575,992 
Securities held to maturity, at amortized cost1,221,464 1,245,595 1,273,044 1,300,240 1,324,040 
Securities available for sale, at fair value923,279 909,108 950,930 1,507,907 1,533,942 
Loans held for sale, at fair value179,756 241,613 249,615 159,318 110,105 
Loans held for investment12,351,230 12,168,023 11,930,516 11,766,425 11,578,304 
Allowance for credit losses on loans(198,578)(197,773)(194,391)(195,292)(192,090)
Loans, net12,152,652 11,970,250 11,736,125 11,571,133 11,386,214 
Premises and equipment, net283,195 284,368 285,952 287,006 283,595 
Other real estate owned9,622 9,258 5,120 4,818 1,763 
Goodwill and other intangibles1,010,460 1,011,735 1,013,046 1,014,415 1,015,884 
Bank-owned life insurance382,584 379,945 377,649 375,572 373,808 
Mortgage servicing rights91,688 90,241 87,432 85,039 84,448 
Other assets304,484 298,352 298,530 320,938 298,385 
Total assets$17,360,535 $17,181,621 $17,224,342 $17,474,083 $16,988,176 
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing$3,583,675 $3,734,197 $3,878,953 $4,244,877 $4,558,756 
Interest-bearing10,493,110 10,422,913 10,216,408 9,667,142 8,928,210 
Total deposits14,076,785 14,157,110 14,095,361 13,912,019 13,486,966 
Short-term borrowings307,577 107,662 257,305 732,057 712,232 
Long-term debt429,400 427,399 429,630 431,111 428,133 
Other liabilities249,390 256,127 233,418 211,596 224,829 
Total liabilities15,063,152 14,948,298 15,015,714 15,286,783 14,852,160 
Shareholders’ equity:
Common stock296,483 296,483 296,483 296,483 296,483 
Treasury stock(105,249)(105,300)(105,589)(107,559)(111,577)
Additional paid-in capital1,308,281 1,304,891 1,301,883 1,299,458 1,302,422 
Retained earnings952,124 936,573 907,312 891,242 857,725 
Accumulated other comprehensive loss(154,256)(199,324)(191,461)(192,324)(209,037)
Total shareholders’ equity
2,297,383 2,233,323 2,208,628 2,187,300 2,136,016 
Total liabilities and shareholders’ equity
$17,360,535 $17,181,621 $17,224,342 $17,474,083 $16,988,176 


6


Net Interest Income and Net Interest Margin
(Dollars in thousands)Three Months Ended
December 31, 2023September 30, 2023December 31, 2022
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$12,249,429 $190,857 6.18 %$12,030,109 $183,521 6.06 %$11,282,422 $147,519 5.19 %
Loans held for sale199,510 3,329 6.68 %227,982 3,751 6.58 %117,082 1,688 5.77 %
Taxable securities2,050,175 9,490 1.85 %2,097,285 9,459 1.80 %2,657,248 13,174 1.98 %
Tax-exempt securities(1)
282,698 1,558 2.20 %285,588 1,566 2.19 %447,287 2,637 2.36 %
Total securities2,332,873 11,048 1.89 %2,382,873 11,025 1.85 %3,104,535 15,811 2.04 %
Interest-bearing balances with banks552,301 7,839 5.63 %729,049 10,128 5.51 %269,975 2,777 4.08 %
Total interest-earning assets15,334,113 213,073 5.52 %15,370,013 208,425 5.39 %14,774,014 167,795 4.51 %
Cash and due from banks180,609 180,708 201,369 
Intangible assets1,011,130 1,012,460 967,005 
Other assets669,988 672,232 635,452 
Total assets$17,195,840 $17,235,413 $16,577,840 
Interest-bearing liabilities:
Interest-bearing demand(2)
$6,721,053 $47,783 2.82 %$6,520,145 $41,464 2.52 %$6,018,679 $12,534 0.83 %
Savings deposits888,692 765 0.34 %942,619 793 0.33 %1,093,997 582 0.21 %
Brokered deposits632,704 8,594 5.39 %947,388 12,732 5.33 %93,764 1,047 4.43 %
Time deposits2,185,737 20,026 3.63 %2,002,505 15,917 3.15 %1,324,042 3,149 0.94 %
Total interest-bearing deposits10,428,186 77,168 2.94 %10,412,657 70,906 2.70 %8,530,482 17,312 0.81 %
Borrowed funds543,344 7,310 5.37 %545,105 7,388 5.40 %893,705 9,918 4.42 %
Total interest-bearing liabilities10,971,530 84,478 3.06 %10,957,762 78,294 2.84 %9,424,187 27,230 1.15 %
Noninterest-bearing deposits3,703,050 3,800,160 4,805,014 
Other liabilities260,235 245,886 209,544 
Shareholders’ equity2,261,025 2,231,605 2,139,095 
Total liabilities and shareholders’ equity$17,195,840 $17,235,413 $16,577,840 
Net interest income/ net interest margin$128,595 3.33 %$130,131 3.36 %$140,565 3.78 %
Cost of funding2.28 %2.11 %0.76 %
Cost of total deposits2.17 %1.98 %0.52 %
(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.
7



Net Interest Income and Net Interest Margin, continued
(Dollars in thousands)Twelve Months Ended
December 31, 2023December 31, 2022
Average
Balance
Interest
Income/
Expense
Yield/  
 Rate
Average
Balance
Interest
Income/
Expense
Yield/  
 Rate
Interest-earning assets:
Loans held for investment$11,963,141 $713,897 5.97%$10,677,995 $476,746 4.46%
Loans held for sale181,253 11,807 6.51%203,981 9,212 4.52%
Taxable securities(1)
2,313,874 44,619 1.93%2,654,621 44,750 1.69%
Tax-exempt securities332,749 7,634 2.29%446,895 10,655 2.38%
Total securities2,646,623 52,253 1.97%3,101,516 55,405 1.79%
Interest-bearing balances with banks568,155 30,375 5.35%846,768 8,853 1.05%
Total interest-earning assets15,359,172 808,332 5.26%14,830,260 550,216 3.71%
Cash and due from banks187,127 201,419 
Intangible assets1,012,239 967,018 
Other assets673,345 639,155 
Total assets$17,231,883 $16,637,852 
Interest-bearing liabilities:
Interest-bearing demand(2)
$6,357,753 $138,730 2.18%$6,420,905 $25,840 0.40%
Savings deposits971,522 3,197 0.33%1,116,013 1,023 0.09%
Brokered deposits697,699 36,039 5.17%23,634 1,047 4.43%
Time deposits1,874,224 54,365 2.90%1,310,398 7,298 0.56%
Total interest-bearing deposits9,901,198 232,331 2.35%8,870,950 35,208 0.40%
Borrowed funds890,765 45,661 5.13%624,887 25,304 4.05%
Total interest-bearing liabilities10,791,963 277,992 2.58%9,495,837 60,512 0.64%
Noninterest-bearing deposits3,979,951 4,760,432 
Other liabilities235,463 196,980 
Shareholders’ equity2,224,506 2,184,603 
Total liabilities and shareholders’ equity$17,231,883 $16,637,852 
Net interest income/ net interest margin$530,340 3.45%$489,704 3.30%
Cost of funding1.88%0.42%
Cost of total deposits1.67%0.26%
(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.



















8


Supplemental Margin Information
(Dollars in thousands)Three Months EndedTwelve Months Ended
Dec 31, 2023Sep 30, 2023Dec 31, 2022Dec 31, 2023Dec 31, 2022
Earning asset mix:
Loans held for investment
79.88 %78.27 %76.36 %77.89 %72.00 %
Loans held for sale1.30 1.48 0.79 1.18 1.38 
Securities15.21 15.50 21.01 17.23 20.91 
Interest-bearing balances with banks3.61 4.75 1.84 3.70 5.71 
Total100.00 %100.00 %100.00 %100.00 %100.00 %
Funding sources mix:
Noninterest-bearing demand25.23 %25.75 %33.77 %26.94 %33.39 %
Interest-bearing demand45.80 44.18 42.30 43.04 45.04 
Savings 6.06 6.39 7.69 6.58 7.83 
Brokered deposits4.31 6.42 0.66 4.72 0.17 
Time deposits14.89 13.57 9.31 12.69 9.19 
Borrowed funds3.71 3.69 6.27 6.03 4.38 
Total100.00 %100.00 %100.00 %100.00 %100.00 %
Net interest income collected on problem loans$283 $(820)$161 $219 $2,949 
Total accretion on purchased loans1,117 1,290 625 4,166 5,198 
Total impact on net interest income$1,400 $470 $786 $4,385 $8,147 
Impact on net interest margin0.04 %0.01 %0.02 %0.03 %0.05 %
Impact on loan yield0.05 %0.02 %0.03 %0.04 %0.08 %
9


Loan Portfolio
(Dollars in thousands)As of
Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022
Loan Portfolio:
Commercial, financial, agricultural$1,871,821 $1,819,891 $1,729,070 $1,740,778 $1,673,883 
Lease financing116,020 120,724 122,370 121,146 115,013 
Real estate - construction1,333,397 1,407,364 1,369,019 1,424,352 1,330,337 
Real estate - 1-4 family mortgages3,439,919 3,398,876 3,348,654 3,278,980 3,216,263 
Real estate - commercial mortgages5,486,550 5,313,166 5,252,479 5,085,813 5,118,063 
Installment loans to individuals103,523 108,002 108,924 115,356 124,745 
Total loans$12,351,230 $12,168,023 $11,930,516 $11,766,425 $11,578,304 


Credit Quality and Allowance for Credit Losses on Loans
(Dollars in thousands)As of
Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022
Nonperforming Assets:
Nonaccruing loans$68,816 $69,541 $55,439 $56,626 $56,545 
Loans 90 days or more past due554 532 36,321 18,664 331 
Total nonperforming loans69,370 70,073 91,760 75,290 56,876 
Other real estate owned9,622 9,258 5,120 4,818 1,763 
Total nonperforming assets$78,992 $79,331 $96,880 $80,108 $58,639 
Criticized Loans
Classified loans$166,893 $186,052 $219,674 $222,701 $200,249 
Special Mention loans99,699 89,858 56,616 64,832 86,172 
Criticized loans(1)
$266,592 $275,910 $276,290 $287,533 $286,421 
Allowance for credit losses on loans$198,578 $197,773 $194,391 $195,292 $192,090 
Net loan charge-offs$1,713 $1,933 $3,901 $4,732 $2,566 
Annualized net loan charge-offs / average loans0.06 %0.06 %0.13 %0.16 %0.09 %
Nonperforming loans / total loans0.56 0.58 0.77 0.64 0.49 
Nonperforming assets / total assets0.46 0.46 0.56 0.46 0.35 
Allowance for credit losses on loans / total loans1.61 1.63 1.63 1.66 1.66 
Allowance for credit losses on loans / nonperforming loans286.26 282.24 211.85 259.39 337.73 
Criticized loans / total loans2.16 2.27 2.32 2.44 2.47 
(1) Criticized loans include loans in risk rating classifications of classified and special mention.
10


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 24, 2024.

The webcast is accessible through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=1DnpBQmV. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2023 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 can be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 1831497 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 7, 2024.

ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 119-year-old financial services institution. Renasant has assets of approximately $17.4 billion and operates 195 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, factoring and 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 repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of our investment securities portfolio; (xi) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xii) changes in the sources and costs of the capital we use to make loans and otherwise fund our operations, due to deposit outflows, changes in the mix of deposits and the cost and availability of borrowings; (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 deposit and 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
11


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 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) adjusted loan yield, (ii) adjusted net interest income and margin, (iii) pre-provision net revenue (including on an as-adjusted basis), (iv) adjusted net income, (v) adjusted diluted earnings per share, (vi) tangible book value per share, (vii) the tangible common equity ratio, (viii) certain performance ratios (namely, the ratio of 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 each of the foregoing on an as-adjusted basis)), and (ix) the adjusted efficiency ratio.

These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets, including related amortization, and/or certain gains or charges (such as, for the fourth quarter of 2023, the gain on extinguishment of debt and the gain on the sale of mortgage servicing rights), with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof. 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 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.


12


Non-GAAP Reconciliations

(Dollars in thousands, except per share data)Three Months EndedTwelve Months Ended
Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Dec 31, 2023Dec 31, 2022
Adjusted Pre-Provision Net Revenue (“PPNR”)
Net income (GAAP)$28,124 $41,833 $28,643 $46,078 $46,276 $144,678 $166,068 
Income taxes3,787 10,766 6,634 11,322 12,885 32,509 45,240 
Provision for credit losses (including unfunded commitments)2,518 4,615 2,000 6,460 10,671 15,593 23,871 
Pre-provision net revenue (non-GAAP)$34,429 $57,214 $37,277 $63,860 $69,832 $192,780 $235,179 
Merger and conversion expense— — — — 1,100 — 1,787 
Gain on extinguishment of debt(620)— — — — (620)— 
Gain on sale of MSR(547)— — — — (547)(2,960)
Restructuring charges — — — — — — 732 
Voluntary reimbursement of certain re-presentment NSF fees— — — — 1,255 — 1,255 
Losses on security sales (including impairments)19,352 — 22,438 — — 41,790 — 
Adjusted pre-provision net revenue (non-GAAP)$52,614 $57,214 $59,715 $63,860 $72,187 $233,403 $235,993 
Adjusted Net Income and Adjusted Tangible Net Income
Net income (GAAP)$28,124 $41,833 $28,643 $46,078 $46,276 $144,678 $166,068 
Amortization of intangibles1,274 1,311 1,369 1,426 1,195 5,380 5,122 
Tax effect of adjustments noted above(1)
(240)(269)(266)(299)(260)(1,012)(1,119)
Tangible net income (non-GAAP)$29,158 $42,875 $29,746 $47,205 $47,211 $149,046 $170,071 
Net income (GAAP)$28,124 $41,833 $28,643 $46,078 $46,276 $144,678 $166,068 
Merger and conversion expense— — — — 1,100 — 1,787 
Gain on extinguishment of debt(620)— — — — (620)— 
Gain on sale of MSR(547)— — — — (547)(2,960)
Restructuring charges— — — — — — 732 
Initial provision for acquisitions— — — — 2,820 — 2,820 
Voluntary reimbursement of certain re-presentment NSF fees— — — — 1,255 — 1,255 
Losses on security sales (including impairments)19,352 — 22,438 — — 41,790 — 
Tax effect of adjustments noted above(1)
(3,422)— (4,353)— (1,127)(7,644)(816)
Adjusted net income (non-GAAP)$42,887 $41,833 $46,728 $46,078 $50,324 $177,657 $168,886 
Amortization of intangibles1,274 1,311 1,369 1,426 1,195 5,380 5,122 
Tax effect of adjustments noted above(1)
(240)(269)(266)(299)(260)(1,012)(1,119)
Adjusted tangible net income (non-GAAP)$43,921 $42,875 $47,831 $47,205 $51,259 $182,025 $172,889 
Tangible Assets and Tangible Shareholders’ Equity
Average shareholders’ equity (GAAP)
$2,261,025 $2,231,605 $2,217,708 $2,186,794 $2,139,095 $2,224,506 $2,184,603 
Average intangible assets1,011,1301,012,4601,013,8111,011,557967,0051,012,239967,018
Average tangible shareholders’ equity (non-GAAP)
$1,249,895 $1,219,145 $1,203,897 $1,175,237 $1,172,090 $1,212,267 $1,217,585 
Average assets (GAAP)$17,195,840 $17,235,413 $17,337,924 $17,157,898 $16,577,840 $17,231,883 $16,637,852 
Average intangible assets1,011,1301,012,4601,013,8111,011,557967,0051,012,239967,018
Average tangible assets (non-GAAP)$16,184,710 $16,222,953 $16,324,113 $16,146,341 $15,610,835 $16,219,644 $15,670,834 
Shareholders’ equity (GAAP)
$2,297,383 $2,233,323 $2,208,628 $2,187,300 $2,136,016 $2,297,383 $2,136,016 
Intangible assets1,010,4601,011,7351,013,0461,014,4151,015,8841,010,4601,015,884
Tangible shareholders’ equity (non-GAAP)
$1,286,923 $1,221,588 $1,195,582 $1,172,885 $1,120,132 $1,286,923 $1,120,132 
13


(Dollars in thousands, except per share data)Three Months EndedTwelve Months Ended
Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Dec 31, 2023Dec 31, 2022
Total assets (GAAP)$17,360,535 $17,181,621 $17,224,342 $17,474,083 $16,988,176 $17,360,535 $16,988,176 
Intangible assets1,010,4601,011,7351,013,0461,014,4151,015,8841,010,4601,015,884
Total tangible assets (non-GAAP)$16,350,075 $16,169,886 $16,211,296 $16,459,668 $15,972,292 $16,350,075 $15,972,292 
Adjusted Performance Ratios
Return on average assets (GAAP)0.65 %0.96 %0.66 %1.09 %1.11 %0.84 %1.00 %
Adjusted return on average assets (non-GAAP)0.99 0.96 1.08 1.09 1.20 1.03 1.02 
Return on average tangible assets (non-GAAP)0.71 1.05 0.73 1.19 1.20 0.92 1.09 
Pre-provision net revenue to average assets (non-GAAP)0.79 1.32 0.86 1.51 1.67 1.12 1.41 
Adjusted pre-provision net revenue to average assets (non-GAAP)1.21 1.32 1.38 1.51 1.73 1.35 1.42 
Adjusted return on average tangible assets (non-GAAP)1.08 1.05 1.18 1.19 1.30 1.12 1.10 
Return on average equity (GAAP)4.93 7.44 5.18 8.55 8.58 6.50 7.60 
Adjusted return on average equity (non-GAAP)7.53 7.44 8.45 8.55 9.33 7.99 7.73 
Return on average tangible equity (non-GAAP)9.26 13.95 9.91 16.29 15.98 12.29 13.97 
Adjusted return on average tangible equity (non-GAAP)13.94 13.95 15.94 16.29 17.35 15.02 14.20 
Adjusted Diluted Earnings Per Share
Average diluted shares outstanding56,611,21756,523,88756,395,65356,270,21956,335,44656,448,16356,214,230
Diluted earnings per share (GAAP)$0.50 $0.74 $0.51 $0.82 $0.82 $2.56 $2.95 
Adjusted diluted earnings per share (non-GAAP)$0.76 $0.74 $0.83 $0.82 $0.89 $3.15 $3.00 
Tangible Book Value Per Share
Shares outstanding56,142,20756,140,71356,132,47856,073,65855,953,10456,142,20755,953,104
Book value per share (GAAP)$40.92 $39.78 $39.35 $39.01 $38.18 $40.92 $38.18 
Tangible book value per share (non-GAAP)$22.92 $21.76 $21.30 $20.92 $20.02 $22.92 $20.02 
Tangible Common Equity Ratio
Shareholders’ equity to assets (GAAP)13.23 %13.00 %12.82 %12.52 %12.57 %13.23 %12.57 %
Tangible common equity ratio (non-GAAP)7.87 %7.55 %7.37 %7.13 %7.01 %7.87 %7.01 %
Adjusted Efficiency Ratio
Net interest income (FTE) (GAAP)$128,595 $130,131 $133,085 $138,529 $140,565 $530,340 $489,704 
Total noninterest income (GAAP)$20,356 $38,200 $17,226 $37,293 $33,395 $113,075 $149,253 
Gain on sale of MSR547 — — — — 547 2,960 
Gain on extinguishment of debt620 — — — — 620 — 
Losses on security sales (including impairments)(19,352)— (22,438)— — (41,790)— 
Total adjusted noninterest income (non-GAAP)$38,541 $38,200 $39,664 $37,293 $33,395 $153,698 $146,293 
14


(Dollars in thousands, except per share data)Three Months EndedTwelve Months Ended
Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Dec 31, 2023Dec 31, 2022
Noninterest expense (GAAP)$111,880 $108,369 $110,165 $109,208 $101,399 $439,622 $395,372 
Amortization of intangibles1,274 1,311 1,369 1,426 1,195 5,380 5,122 
Merger and conversion expense— — — — 1,100 — 1,787 
Restructuring charges— — — — — — 732 
Voluntary reimbursement of certain re-presentment NSF fees— — — — 1,255 — 1,255 
Total adjusted noninterest expense (non-GAAP)$110,606 $107,058 $108,796 $107,782 $97,849 $434,242 $386,476 
Efficiency ratio (GAAP)75.11 %64.38 %73.29 %62.11 %58.29 %68.33 %61.88 %
Adjusted efficiency ratio (non-GAAP)66.18 %63.60 %62.98 %61.30 %56.25 %63.48 %60.77 %
Adjusted Net Interest Income and Adjusted Net Interest Margin
Net interest income (FTE) (GAAP)$128,595 $130,131 $133,085 $138,529 $140,565 $530,340 $489,704 
Net interest income collected on problem loans283 (820)364 392 161 219 2,949 
Accretion recognized on purchased loans1,117 1,290 874 885 625 4,166 5,198 
Adjustments to net interest income$1,400 $470 $1,238 $1,277 $786 $4,385 $8,147 
Adjusted net interest income (FTE) (non-GAAP)$127,195 $129,661 $131,847 $137,252 $139,779 $525,955 $481,557 
Net interest margin (GAAP)3.33 %3.36 %3.45 %3.66 %3.78 %3.45 %3.30 %
Adjusted net interest margin (non-GAAP)3.29 %3.35 %3.43 %3.63 %3.76 %3.42 %3.25 %
Adjusted Loan Yield
Loan interest income (FTE) (GAAP)$190,857 $183,521 $175,549 $163,970 $147,519 $713,897 $476,746 
Net interest income collected on problem loans283 (820)364 392 161 219 2,949 
Accretion recognized on purchased loans1,117 1,290 874 885 625 4,166 5,198 
Adjusted loan interest income (FTE) (non-GAAP) $189,457 $183,051 $174,311 $162,693 $146,733 $709,512 $468,599 
Loan yield (GAAP)6.18 %6.06 %5.93 %5.68 %5.19 %5.97 %4.46 %
Adjusted loan yield (non-GAAP)6.14 %6.04 %5.89 %5.64 %5.16 %5.93 %4.39 %
(1) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.


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15
rnstq42023earningsdeckfi
Fourth Quarter 2023 Earnings Call


 
This presentation may contain various statements about Renasant Corporation (“Renasant,” “we,” “our,” or “us”) 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 our future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. We believe 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 our control. In addition, these forward-looking statements are subject to assumptions about future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements; 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. 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) Renasant’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, factoring and 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) Renasant’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 our loan or investment portfolios, including adverse developments in borrower industries or the repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of our investment securities portfolio; (xi) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xii) changes in the sources and costs of the capital we use to make loans and otherwise fund our operations, due to deposit outflows, changes in the mix of deposits and the cost and availability of borrowings; (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 deposit and 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 our 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 our 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 Renasant’s filings with the Securities and Exchange Commission (“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. We undertake no obligation, and specifically disclaim any obligation, to update or revise our 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. 2 Forward-Looking Statements


 
3 Overview Snapshot Note: As of December 31, 2023 *Republic Business Credit operates on a nationwide basis. Locations in California, Illinois and Texas are not shown. Assets: $17.4 billion Loans: 12.4 Deposits: 14.1 Equity: 2.3 Footprint Loans and Deposits by State MS 22% AL 28% FL 7% Other 1% GA 28% TN 14% Loans MS 41% AL 15% FL 3% GA 30% TN 11% Deposits


 
4 Fourth Quarter Highlights • Net income of $28.1 million with diluted EPS of $0.50 and adjusted diluted EPS (non-GAAP)(1) of $0.76 • Net interest margin decreased 3 basis points to 3.33% on a linked quarter basis • Loans increased $183.2 million, or 6.0% annualized • The Company determined to sell a portion of its available-for-sale securities portfolio in the fourth quarter of 2023, and as a result the Company recognized pre-tax non-credit related impairment charges of $19.4 million. The impaired securities were sold in the first quarter of 2024 and generated $177 million in proceeds • Deposits decreased $80.3 million; core deposits, which excludes brokered deposits, increased $215.6 million • Cost of total deposits increased 19 basis points to 2.17%; noninterest-bearing deposits represented 25.5% of total deposits • The ratio of allowance for credit losses on loans to total loans was 1.61% • Nonperforming loans represented 0.56% of total loans, a decrease of 2 basis points on a linked quarter basis; annualized net loan charge-offs were 0.06% of average loans (1) Adjusted Diluted EPS is a non-GAAP financial measure. A reconciliation of GAAP to non-GAAP financial measures is included in the earnings release furnished to the SEC on the same Form 8-K as this presentation under the heading “Non-GAAP Reconciliations”.


 
5 Balance Sheet $16,988 $17,474 $17,224 $17,182 $17,361 $16 ,700 $16 ,800 $16 ,900 $17 ,000 $17 ,100 $17 ,200 $17 ,300 $17 ,400 $17 ,500 $17 ,600 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Assets $11,578 $11,766 $11,931 $12,168 $12,351 $11 ,000 $11 ,200 $11 ,400 $11 ,600 $11 ,800 $12 ,000 $12 ,200 $12 ,400 $12 ,600 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Loans $13,487 $13,912 $14,095 $14,157 $14,077 $13 ,000 $13 ,200 $13 ,400 $13 ,600 $13 ,800 $14 ,000 $14 ,200 $14 ,400 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Deposits $2,136 $2,187 $2,209 $2,233 $2,297 $2,050 $2,100 $2,150 $2,200 $2,250 $2,300 $2,350 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Equity Note: Dollars in millions Note: In millions


 
6 Core Deposit Funding 26% 49% 6% 16% 3% Noninterest-bearing Interest-bearing* Savings Time Brokered • Average deposit account is $28 thousand; commercial and consumer deposit accounts, excluding time deposit accounts, averaged approximately $75 thousand and $13 thousand, respectively • Top 20 depositors, excluding public funds, comprise 4% of total deposits Diversification Note: As of December 31, 2023 *Includes money market Consumer 47% Commercial 36% Brokered 3% Public Funds 14% CommercialCustomer Construction 16% Professional Services 9% Real Estate 14% Financial 12% Manufacturing 7% Trade 11% Health Care 5% Other Services 17% Other 9% Granularity


 
7 Strong Liquidity 86% 85% 85% 86% 88% $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Loans to Deposits 20.2% 20.9% 18.4% 16.9% 17.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Cash and Securities to Total Assets Average Interest Earning Asset Mix (4Q 2023) 80% 1% 15% 4% Loans Held for Investment Loans Held for Sale Securities Interest Bearing Balances with Banks


 
8 Capital • $100 million stock repurchase program is in effect through October 2024; there was no buyback activity in the fourth quarter of 2023 • Consistent dividend payment history, including through the 2008 financial crisis • Unrealized losses on the HTM portfolio would have a negative impact of 41 basis points on the TCE ratio at December 31, 2023; unrealized losses on both HTM and AFS would have a negative impact of 136 basis points on CET1 and the Company would remain above well- capitalized thresholds at December 31, 2023 Highlights * Tangible Common Equity and Tangible Book Value are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measu