EX-99.1 2 exhibit991_rnstx1q2024earn.htm EX-99.1 Document

renasantcorporationlogo-fu.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 FIRST QUARTER OF 2024

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

(Dollars in thousands, except earnings per share)Three Months Ended
Mar 31, 2024Dec 31, 2023Mar 31, 2023
Net income and earnings per share:
Net income$39,409$28,124$46,078
After-tax loss on sale of securities— (15,711)— 
Basic EPS0.700.500.82
Diluted EPS0.700.500.82
Adjusted diluted EPS (Non-GAAP)(1)
0.650.760.82
Impact to diluted EPS from after-tax loss on sale of securities (including impairments)— 0.28— 

“The quarter's results reflect solid performance across the company, including good loan and deposit growth.” remarked C. Mitchell Waycaster, Chief Executive Officer of the Company. “We continue to build balance sheet strength and believe this will keep Renasant well positioned for additional growth.”

Quarterly Highlights

Earnings
•Net income for the first quarter of 2024 was $39.4 million; diluted EPS was $0.70 and adjusted diluted EPS (non-GAAP)(1) was $0.65
•Net interest income (fully tax equivalent) for the first quarter of 2024 was $125.9 million, down $2.7 million on a linked quarter basis
•For the first quarter of 2024, net interest margin was 3.30%, down 3 basis points on a linked quarter basis
•Cost of total deposits was 2.35% for the first quarter of 2024, up 18 basis points on a linked quarter basis
•Noninterest income increased $21.0 million on a linked quarter basis. In the fourth quarter of 2023, the Company recognized impairment charges of $19.4 million as a result of its determination to sell a portion of its available-for-sale securities; there was no such impairment in the first quarter of 2024. Noninterest income for the fourth quarter of 2023 also included the receipt of $2.3 million related to Renasant's participation in a recovery agreement, with minimal recoveries in the first quarter of 2024
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•Mortgage banking income increased $4.8 million on a linked quarter basis. The mortgage division generated $0.4 billion in interest rate lock volume in the first quarter of 2024, an increase of $0.1 billion on a linked quarter basis. Gain on sale margin was 1.78% for the first quarter of 2024, up 64 basis points on a linked quarter basis. In addition, during the first quarter of 2024, the Company sold a portion of its mortgage servicing rights (“MSR”), recognizing a gain of $3.5 million
•Noninterest expense increased $1.0 million on a linked quarter basis. The Company contributed $1.1 million to certain charitable organizations which were recorded in the line item "advertising and public relations" expense. These contributions qualify as tax credits and will reduce income tax expense dollar for dollar in 2024. In the first quarter of 2024, the Company recorded expense of $0.7 million related to the FDIC special assessment, as compared to the $2.7 million recorded in the fourth quarter of 2023

Balance Sheet
•Loans increased $149.3 million on a linked quarter basis, representing 4.9% annualized net loan growth
•Securities decreased $181.1 million on a linked quarter basis primarily driven by the sale of a portion of the Company's available-for-sale securities for proceeds of $177.2 million. A portion of the proceeds was used to purchase higher yielding securities, while the remainder, along with other cash flows from the securities portfolio, was used to fund loan growth.
•Deposits at March 31, 2024 increased $160.4 million on a linked quarter basis. Brokered deposits decreased $119.2 million on a linked quarter basis to $342.3 million at March 31, 2024. Noninterest bearing deposits decreased $67.5 million on a linked quarter basis and represented 24.7% of total deposits at March 31, 2024

Capital and Liquidity
•Book value per share and tangible book value per share (non-GAAP)(1) increased 0.8% and 1.7%, 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 first quarter of 2024

Credit Quality
•The Company recorded a provision for credit losses of $2.4 million for the first quarter of 2024
•The ratio of allowance for credit losses on loans to total loans was constant at 1.61% at March 31, 2024 compared to December 31, 2023
•The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 270.87% at March 31, 2024, compared to 286.26% at December 31, 2023
•Net loan charge-offs for the first quarter of 2024 were $0.2 million, or 0.01% of average loans on an annualized basis
•Nonperforming loans to total loans increased to 0.59% at March 31, 2024 compared to 0.56% at December 31, 2023, and criticized loans (which include classified and special mention loans) to total loans increased to 2.76% at March 31, 2024, compared to 2.16% at December 31, 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.
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Income Statement
(Dollars in thousands, except per share data)Three Months Ended
Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Interest income
Loans held for investment$192,390 $188,535 $181,129 $173,198 $161,787 
Loans held for sale2,308 3,329 3,751 2,990 1,737 
Securities10,700 10,728 10,669 14,000 15,091 
Other7,781 7,839 10,128 6,978 5,430 
Total interest income213,179 210,431 205,677 197,166 184,045 
Interest expense
Deposits82,613 77,168 70,906 51,391 32,866 
Borrowings7,276 7,310 7,388 15,559 15,404 
Total interest expense89,889 84,478 78,294 66,950 48,270 
Net interest income123,290 125,953 127,383 130,216 135,775 
Provision for credit losses
Provision for loan losses2,638 2,518 5,315 3,000 7,960 
Recovery of unfunded commitments(200)— (700)(1,000)(1,500)
Total provision for credit losses2,438 2,518 4,615 2,000 6,460 
Net interest income after provision for credit losses120,852 123,435 122,768 128,216 129,315 
Noninterest income41,381 20,356 38,200 17,226 37,293 
Noninterest expense112,912 111,880 108,369 110,165 109,208 
Income before income taxes49,321 31,911 52,599 35,277 57,400 
Income taxes9,912 3,787 10,766 6,634 11,322 
Net income$39,409 $28,124 $41,833 $28,643 $46,078 
Adjusted net income (non-GAAP)(1)
$36,572 $42,887 $41,833 $46,728 $46,078 
Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1)
$48,231 $52,614 $57,214 $59,715 $63,860 
Basic earnings per share$0.70 $0.50 $0.75 $0.51 $0.82 
Diluted earnings per share0.70 0.50 0.74 0.51 0.82 
Adjusted diluted earnings per share (non-GAAP)(1)
0.65 0.76 0.74 0.83 0.82 
Average basic shares outstanding56,208,348 56,141,628 56,138,618 56,107,881 56,008,741 
Average diluted shares outstanding56,531,078 56,611,217 56,523,887 56,395,653 56,270,219 
Cash dividends per common share$0.22 $0.22 $0.22 $0.22 $0.22 
(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.
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Performance Ratios
Three Months Ended
Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Return on average assets0.92 %0.65 %0.96 %0.66 %1.09 %
Adjusted return on average assets (non-GAAP)(1)
0.86 0.99 0.96 1.08 1.09 
Return on average tangible assets (non-GAAP)(1)
1.00 0.71 1.05 0.73 1.19 
Adjusted return on average tangible assets (non-GAAP)(1)
0.93 1.08 1.05 1.18 1.19 
Return on average equity6.85 4.93 7.44 5.18 8.55 
Adjusted return on average equity (non-GAAP)(1)
6.36 7.53 7.44 8.45 8.55 
Return on average tangible equity (non-GAAP)(1)
12.45 9.26 13.95 9.91 16.29 
Adjusted return on average tangible equity (non-GAAP)(1)
11.58 13.94 13.95 15.94 16.29 
Efficiency ratio (fully taxable equivalent)67.52 75.11 64.38 73.29 62.11 
Adjusted efficiency ratio (non-GAAP)(1)
68.23 66.18 63.60 62.98 61.30 
Dividend payout ratio31.43 44.00 29.33 43.14 26.83 

Capital and Balance Sheet Ratios
As of
Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Shares outstanding56,304,860 56,142,207 56,140,713 56,132,478 56,073,658 
Market value per share$31.32 $33.68 $26.19 $26.13 $30.58 
Book value per share41.25 40.92 39.78 39.35 39.01 
Tangible book value per share (non-GAAP)(1)
23.32 22.92 21.76 21.30 20.92 
Shareholders’ equity to assets13.39 %13.23 %13.00 %12.82 %12.52 %
Tangible common equity ratio (non-GAAP)(1)
8.04 7.87 7.55 7.37 7.13 
Leverage ratio9.75 9.62 9.48 9.22 9.18 
Common equity tier 1 capital ratio10.59 10.52 10.46 10.30 10.19 
Tier 1 risk-based capital ratio11.37 11.30 11.25 11.09 10.98 
Total risk-based capital ratio15.00 14.93 14.91 14.76 14.68 

(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.
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Noninterest Income and Noninterest Expense
(Dollars in thousands)Three Months Ended
Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Noninterest income
Service charges on deposit accounts$10,506 $10,603 $9,743 $9,733 $9,120 
Fees and commissions3,949 4,130 4,108 4,987 4,676 
Insurance commissions2,716 2,583 3,264 2,809 2,446 
Wealth management revenue5,669 5,668 5,986 5,338 5,140 
Mortgage banking income11,370 6,592 7,533 9,771 8,517 
Net losses on sales of securities (including impairments)— (19,352)— (22,438)— 
Gain on extinguishment of debt56 620 — — — 
BOLI income2,691 2,589 2,469 2,402 3,003 
Other4,424 6,923 5,097 4,624 4,391 
Total noninterest income$41,381 $20,356 $38,200 $17,226 $37,293 
Noninterest expense
Salaries and employee benefits$71,470 $71,841 $69,458 $70,637 $69,832 
Data processing3,807 3,971 3,907 3,684 3,633 
Net occupancy and equipment11,389 11,653 11,548 11,865 11,405 
Other real estate owned107 306 (120)51 30 
Professional fees3,348 2,854 3,338 4,012 3,467 
Advertising and public relations4,886 3,084 3,474 3,482 4,686 
Intangible amortization1,212 1,274 1,311 1,369 1,426 
Communications2,024 2,026 2,006 2,226 1,980 
Other14,669 14,871 13,447 12,839 12,749 
Total noninterest expense$112,912 $111,880 $108,369 $110,165 $109,208 

Mortgage Banking Income
(Dollars in thousands)Three Months Ended
Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Gain on sales of loans, net$4,535 $1,860 $3,297 $4,646 $4,770 
Fees, net1,854 2,010 2,376 2,859 1,806 
Mortgage servicing income, net4,981 2,722 1,860 2,266 1,941 
Total mortgage banking income$11,370 $6,592 $7,533 $9,771 $8,517 
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Balance Sheet
(Dollars in thousands)As of
Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Assets
Cash and cash equivalents$844,400 $801,351 $741,156 $946,899 $847,697 
Securities held to maturity, at amortized cost1,199,111 1,221,464 1,245,595 1,273,044 1,300,240 
Securities available for sale, at fair value764,486 923,279 909,108 950,930 1,507,907 
Loans held for sale, at fair value191,440 179,756 241,613 249,615 159,318 
Loans held for investment12,500,525 12,351,230 12,168,023 11,930,516 11,766,425 
Allowance for credit losses on loans(201,052)(198,578)(197,773)(194,391)(195,292)
Loans, net12,299,473 12,152,652 11,970,250 11,736,125 11,571,133 
Premises and equipment, net282,193 283,195 284,368 285,952 287,006 
Other real estate owned9,142 9,622 9,258 5,120 4,818 
Goodwill and other intangibles1,009,248 1,010,460 1,011,735 1,013,046 1,014,415 
Bank-owned life insurance385,186 382,584 379,945 377,649 375,572 
Mortgage servicing rights71,596 91,688 90,241 87,432 85,039 
Other assets289,466 304,484 298,352 298,530 320,938 
Total assets$17,345,741 $17,360,535 $17,181,621 $17,224,342 $17,474,083 
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing$3,516,164 $3,583,675 $3,734,197 $3,878,953 $4,244,877 
Interest-bearing10,720,999 10,493,110 10,422,913 10,216,408 9,667,142 
Total deposits14,237,163 14,076,785 14,157,110 14,095,361 13,912,019 
Short-term borrowings108,121 307,577 107,662 257,305 732,057 
Long-term debt428,047 429,400 427,399 429,630 431,111 
Other liabilities250,060 249,390 256,127 233,418 211,596 
Total liabilities15,023,391 15,063,152 14,948,298 15,015,714 15,286,783 
Shareholders’ equity:
Common stock296,483 296,483 296,483 296,483 296,483 
Treasury stock(99,683)(105,249)(105,300)(105,589)(107,559)
Additional paid-in capital1,303,613 1,308,281 1,304,891 1,301,883 1,299,458 
Retained earnings978,880 952,124 936,573 907,312 891,242 
Accumulated other comprehensive loss(156,943)(154,256)(199,324)(191,461)(192,324)
Total shareholders’ equity
2,322,350 2,297,383 2,233,323 2,208,628 2,187,300 
Total liabilities and shareholders’ equity
$17,345,741 $17,360,535 $17,181,621 $17,224,342 $17,474,083 


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Net Interest Income and Net Interest Margin
(Dollars in thousands)Three Months Ended
March 31, 2024December 31, 2023March 31, 2023
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$12,407,976 $194,640 6.30 %$12,249,429 $190,857 6.18 %$11,688,534 $163,970 5.68 %
Loans held for sale155,382 2,308 5.94 %199,510 3,329 6.68 %103,410 1,737 6.72 %
Taxable securities1,891,817 9,505 2.01 %2,050,175 9,490 1.85 %2,635,130 13,317 2.02 %
Tax-exempt securities(1)
270,279 1,505 2.23 %282,698 1,558 2.20 %397,014 2,345 2.36 %
Total securities2,162,096 11,010 2.04 %2,332,873 11,048 1.89 %3,032,144 15,662 2.07 %
Interest-bearing balances with banks570,336 7,781 5.49 %552,301 7,839 5.63 %464,229 5,430 4.74 %
Total interest-earning assets15,295,790 215,739 5.66 %15,334,113 213,073 5.52 %15,288,317 186,799 4.94 %
Cash and due from banks188,503 180,609 197,782 
Intangible assets1,009,825 1,011,130 1,011,557 
Other assets708,895 669,988 660,242 
Total assets$17,203,013 $17,195,840 $17,157,898 
Interest-bearing liabilities:
Interest-bearing demand(2)
$6,955,989 $52,500 3.03 %$6,721,053 $47,783 2.82 %$6,066,770 $20,298 1.36 %
Savings deposits860,397 730 0.34 %888,692 765 0.34 %1,052,802 826 0.32 %
Brokered deposits445,608 5,987 5.39 %632,704 8,594 5.39 %395,745 4,418 4.53 %
Time deposits2,319,420 23,396 4.06 %2,185,737 20,026 3.63 %1,564,855 7,324 1.90 %
Total interest-bearing deposits10,581,414 82,613 3.13 %10,428,186 77,168 2.94 %9,080,172 32,866 1.47 %
Borrowed funds544,564 7,276 5.35 %543,344 7,310 5.37 %1,281,552 15,404 4.86 %
Total interest-bearing liabilities11,125,978 89,889 3.24 %10,971,530 84,478 3.06 %10,361,724 48,270 1.89 %
Noninterest-bearing deposits3,518,612 3,703,050 4,386,998 
Other liabilities244,142 260,235 222,382 
Shareholders’ equity2,314,281 2,261,025 2,186,794 
Total liabilities and shareholders’ equity$17,203,013 $17,195,840 $17,157,898 
Net interest income/ net interest margin$125,850 3.30 %$128,595 3.33 %$138,529 3.66 %
Cost of funding2.46 %2.28 %1.33 %
Cost of total deposits2.35 %2.17 %0.99 %
(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.
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Supplemental Margin Information
(Dollars in thousands)Three Months Ended
Mar 31, 2024Dec 31, 2023Mar 31, 2023
Earning asset mix:
Loans held for investment
81.12 %79.88 %76.45 %
Loans held for sale1.02 1.30 0.68 
Securities14.14 15.21 19.83 
Interest-bearing balances with banks3.72 3.61 3.04 
Total100.00 %100.00 %100.00 %
Funding sources mix:
Noninterest-bearing demand24.03 %25.23 %29.74 %
Interest-bearing demand47.50 45.80 41.13 
Savings 5.88 6.06 7.14 
Brokered deposits3.04 4.31 2.68 
Time deposits15.84 14.89 10.61 
Borrowed funds3.71 3.71 8.70 
Total100.00 %100.00 %100.00 %
Net interest income collected on problem loans$123 $283 $392 
Total accretion on purchased loans800 1,117 885 
Total impact on net interest income$923 $1,400 $1,277 
Impact on net interest margin0.02 %0.04 %0.03 %
Impact on loan yield0.03 0.05 0.04 
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Loan Portfolio
(Dollars in thousands)As of
Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Loan Portfolio:
Commercial, financial, agricultural$1,869,408 $1,871,821 $1,819,891 $1,729,070 $1,740,778 
Lease financing107,474 116,020 120,724 122,370 121,146 
Real estate - construction1,243,535 1,333,397 1,407,364 1,369,019 1,424,352 
Real estate - 1-4 family mortgages3,429,286 3,439,919 3,398,876 3,348,654 3,278,980 
Real estate - commercial mortgages5,753,230 5,486,550 5,313,166 5,252,479 5,085,813 
Installment loans to individuals97,592 103,523 108,002 108,924 115,356 
Total loans$12,500,525 $12,351,230 $12,168,023 $11,930,516 $11,766,425 


Credit Quality and Allowance for Credit Losses on Loans
(Dollars in thousands)As of
Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Nonperforming Assets:
Nonaccruing loans$73,774 $68,816 $69,541 $55,439 $56,626 
Loans 90 days or more past due451 554 532 36,321 18,664 
Total nonperforming loans74,225 69,370 70,073 91,760 75,290 
Other real estate owned9,142 9,622 9,258 5,120 4,818 
Total nonperforming assets$83,367 $78,992 $79,331 $96,880 $80,108 
Criticized Loans
Classified loans$206,502 $166,893 $186,052 $219,674 $222,701 
Special Mention loans138,366 99,699 89,858 56,616 64,832 
Criticized loans(1)
$344,868 $266,592 $275,910 $276,290 $287,533 
Allowance for credit losses on loans$201,052 $198,578 $197,773 $194,391 $195,292 
Net loan charge-offs$164 $1,713 $1,933 $3,901 $4,732 
Annualized net loan charge-offs / average loans0.01 %0.06 %0.06 %0.13 %0.16 %
Nonperforming loans / total loans0.59 0.56 0.58 0.77 0.64 
Nonperforming assets / total assets0.48 0.46 0.46 0.56 0.46 
Allowance for credit losses on loans / total loans1.61 1.61 1.63 1.63 1.66 
Allowance for credit losses on loans / nonperforming loans270.87 286.26 282.24 211.85 259.39 
Criticized loans / total loans2.76 2.16 2.27 2.32 2.44 
(1) Criticized loans include loans in risk rating classifications of classified and special mention.
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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, April 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=YbP0Ll7b. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2024 First 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 6704083 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until May 8, 2024.

ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 120-year-old financial services institution. Renasant has assets of approximately $17.3 billion and operates 193 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 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
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catastrophic events in the Company’s geographic area; (xix) the impact, extent and timing of technological changes; and (xx) other circumstances, many of which are beyond management’s control.

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

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

NON-GAAP FINANCIAL MEASURES:
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this press release and the presentation slides furnished to the SEC on the same Form 8-K as this release contain non-GAAP financial measures, namely, (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 first quarter of 2024, 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.


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Non-GAAP Reconciliations

(Dollars in thousands, except per share data)Three Months Ended
Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Adjusted Pre-Provision Net Revenue (“PPNR”)
Net income (GAAP)$39,409 $28,124 $41,833 $28,643 $46,078 
Income taxes9,912 3,787 10,766 6,634 11,322 
Provision for credit losses (including unfunded commitments)2,438 2,518 4,615 2,000 6,460 
Pre-provision net revenue (non-GAAP)$51,759 $34,429 $57,214 $37,277 $63,860 
Gain on extinguishment of debt(56)(620)— — — 
Gain on sales of MSR(3,472)(547)— — — 
Losses on sales of securities (including impairments)— 19,352 — 22,438 — 
Adjusted pre-provision net revenue (non-GAAP)$48,231 $52,614 $57,214 $59,715 $63,860 
Adjusted Net Income and Adjusted Tangible Net Income
Net income (GAAP)$39,409 $28,124 $41,833 $28,643 $46,078 
Amortization of intangibles1,212 1,274 1,311 1,369 1,426 
Tax effect of adjustments noted above(1)
(237)(240)(269)(266)(299)
Tangible net income (non-GAAP)$40,384 $29,158 $42,875 $29,746 $47,205 
Net income (GAAP)$39,409 $28,124 $41,833 $28,643 $46,078 
Gain on extinguishment of debt(56)(620)— — — 
Gain on sales of MSR(3,472)(547)— — — 
Losses on sales of securities (including impairments)— 19,352 — 22,438 — 
Tax effect of adjustments noted above(1)
691 (3,422)— (4,353)— 
Adjusted net income (non-GAAP)$36,572 $42,887 $41,833 $46,728 $46,078 
Amortization of intangibles1,212 1,274 1,311 1,369 1,426 
Tax effect of adjustments noted above(1)
(237)(240)(269)(266)(299)
Adjusted tangible net income (non-GAAP)$37,547 $43,921 $42,875 $47,831 $47,205 
Tangible Assets and Tangible Shareholders’ Equity
Average shareholders’ equity (GAAP)
$2,314,281 $2,261,025 $2,231,605 $2,217,708 $2,186,794 
Average intangible assets1,009,8251,011,1301,012,4601,013,8111,011,557
Average tangible shareholders’ equity (non-GAAP)
$1,304,456 $1,249,895 $1,219,145 $1,203,897 $1,175,237 
Average assets (GAAP)$17,203,013 $17,195,840 $17,235,413 $17,337,924 $17,157,898 
Average intangible assets1,009,8251,011,1301,012,4601,013,8111,011,557
Average tangible assets (non-GAAP)$16,193,188 $16,184,710 $16,222,953 $16,324,113 $16,146,341 
Shareholders’ equity (GAAP)
$2,322,350 $2,297,383 $2,233,323 $2,208,628 $2,187,300 
Intangible assets1,009,2481,010,4601,011,7351,013,0461,014,415
Tangible shareholders’ equity (non-GAAP)
$1,313,102 $1,286,923 $1,221,588 $1,195,582 $1,172,885 
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(Dollars in thousands, except per share data)Three Months Ended
Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Total assets (GAAP)$17,345,741 $17,360,535 $17,181,621 $17,224,342 $17,474,083 
Intangible assets1,009,2481,010,4601,011,7351,013,0461,014,415
Total tangible assets (non-GAAP)$16,336,493 $16,350,075 $16,169,886 $16,211,296 $16,459,668 
Adjusted Performance Ratios
Return on average assets (GAAP)0.92 %0.65 %0.96 %0.66 %1.09 %
Adjusted return on average assets (non-GAAP)0.86 0.99 0.96 1.08 1.09 
Return on average tangible assets (non-GAAP)1.00 0.71 1.05 0.73 1.19 
Pre-provision net revenue to average assets (non-GAAP)1.21 0.79 1.32 0.86 1.51 
Adjusted pre-provision net revenue to average assets (non-GAAP)1.13 1.21 1.32 1.38 1.51 
Adjusted return on average tangible assets (non-GAAP)0.93 1.08 1.05 1.18 1.19 
Return on average equity (GAAP)6.85 4.93 7.44 5.18 8.55 
Adjusted return on average equity (non-GAAP)6.36 7.53 7.44 8.45 8.55 
Return on average tangible equity (non-GAAP)12.45 9.26 13.95 9.91 16.29 
Adjusted return on average tangible equity (non-GAAP)11.58 13.94 13.95 15.94 16.29 
Adjusted Diluted Earnings Per Share
Average diluted shares outstanding56,531,07856,611,21756,523,88756,395,65356,270,219
Diluted earnings per share (GAAP)$0.70 $0.50 $0.74 $0.51 $0.82 
Adjusted diluted earnings per share (non-GAAP)$0.65 $0.76 $0.74 $0.83 $0.82 
Tangible Book Value Per Share
Shares outstanding56,304,86056,142,20756,140,71356,132,47856,073,658
Book value per share (GAAP)$41.25 $40.92 $39.78 $39.35 $39.01 
Tangible book value per share (non-GAAP)$23.32 $22.92 $21.76 $21.30 $20.92 
Tangible Common Equity Ratio
Shareholders’ equity to assets (GAAP)13.39 %13.23 %13.00 %12.82 %12.52 %
Tangible common equity ratio (non-GAAP)8.04 %7.87 %7.55 %7.37 %7.13 %
Adjusted Efficiency Ratio
Net interest income (FTE) (GAAP)$125,850 $128,595 $130,131 $133,085 $138,529 
Total noninterest income (GAAP)$41,381 $20,356 $38,200 $17,226 $37,293 
Gain on sales of MSR3,472 547 — — — 
Gain on extinguishment of debt56 620 — — — 
Losses on sales of securities (including impairments)— (19,352)— (22,438)— 
Total adjusted noninterest income (non-GAAP)$37,853 $38,541 $38,200 $39,664 $37,293 
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(Dollars in thousands, except per share data)Three Months Ended
Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Noninterest expense (GAAP)$112,912 $111,880 $108,369 $110,165 $109,208 
Amortization of intangibles1,212 1,274 1,311 1,369 1,426 
Total adjusted noninterest expense (non-GAAP)$111,700 $110,606 $107,058 $108,796 $107,782 
Efficiency ratio (GAAP)67.52 %75.11 %64.38 %73.29 %62.11 %
Adjusted efficiency ratio (non-GAAP)68.23 %66.18 %63.60 %62.98 %61.30 %
Adjusted Net Interest Income and Adjusted Net Interest Margin
Net interest income (FTE) (GAAP)$125,850 $128,595 $130,131 $133,085 $138,529 
Net interest income collected on problem loans123 283 (820)364 392 
Accretion recognized on purchased loans800 1,117 1,290 874 885 
Adjustments to net interest income$923 $1,400 $470 $1,238 $1,277 
Adjusted net interest income (FTE) (non-GAAP)$124,927 $127,195 $129,661 $131,847 $137,252 
Net interest margin (GAAP)3.30 %3.33 %3.36 %3.45 %3.66 %
Adjusted net interest margin (non-GAAP)3.28 %3.29 %3.35 %3.43 %3.63 %
Adjusted Loan Yield
Loan interest income (FTE) (GAAP)$194,640 $190,857 $183,521 $175,549 $163,970 
Net interest income collected on problem loans123 283 (820)364 392 
Accretion recognized on purchased loans800 1,117 1,290 874 885 
Adjusted loan interest income (FTE) (non-GAAP) $193,717 $189,457 $183,051 $174,311 $162,693 
Loan yield (GAAP)6.30 %6.18 %6.06 %5.93 %5.68 %
Adjusted loan yield (non-GAAP)6.27 %6.14 %6.04 %5.89 %5.64 %
(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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