Renasant Corporation Announces Earnings for the Fourth Quarter of 2020


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

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

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

Impact of Certain Expenses and Charges
From time to time, the Company incurs expenses and charges with respect to which management is unable to accurately predict when these expenses or charges will be incurred or, when incurred, the amount of such expenses or charges. The following tables present the impact of these expenses and charges on reported EPS for the fourth quarter of 2020 and the same period in 2019 and for the year ended December 31, 2020 and the same period in 2019. The “COVID-19 related expenses” line item in the table below primarily consists of (a) employee overtime and employee benefit accruals directly related to the Company’s response to both the COVID-19 pandemic itself and federal legislation enacted to address the pandemic, such as the CARES Act, and (b) expenses associated with supplying branches with protective equipment and sanitation supplies (such as floor markings and cautionary signage for branches, face coverings and hand sanitizer) and more frequent and rigorous branch cleaning. The “restructuring charges” and “swap termination charges” line items in the table below are discussed in more detail later in this release.

(in thousands, except per share data)Three Months Ended Twelve Months Ended
 December 31, 2020 December 31, 2020
 Pre-taxAfter-taxImpact to Diluted EPS Pre-taxAfter-taxImpact to Diluted EPS
Earnings, as reported$38,339 $31,521 $0.56  $103,491 $83,651 $1.48 
Debt prepayment penalty3 2   121 97  
MSR valuation adjustment(1,968)(1,615)(0.03) 11,726 9,450 0.17 
Restructuring charges7,365 6,045 0.11  7,365 5,936 0.11 
Swap termination charges2,040 1,675 0.03  2,040 1,644 0.03 
COVID-19 related expenses613 503 0.01  10,343 8,336 0.14 
Earnings, with exclusions (Non-GAAP)$46,392 $38,131 $0.68  $135,086 $109,114 $1.93 
        
 Three Months Ended Twelve Months Ended
 December 31, 2019 December 31, 2019
 Pre-taxAfter-taxImpact to Diluted EPS Pre-taxAfter-taxImpact to Diluted EPS
Earnings, as reported$47,839 $38,415 $0.67  $215,687 $167,596 $2.88 
Merger and conversion expenses76 61   279 216  
Debt prepayment penalty    54 41  
MSR valuation adjustment(1,296)(1,040)(0.01) 1,836 1,427 0.03 
Earnings, with exclusions (Non-GAAP)$46,619 $37,436 $0.66  $217,856 $169,280 $2.91 


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

Profitability Metrics
The following tables present the Company’s profitability metrics, including after adjusting for the impact of the mortgage servicing rights (MSR) valuation adjustment, debt prepayment penalties, merger and conversion expenses, restructuring charges, swap termination charges and COVID-19 related expenses, as applicable, for the dates presented:

 As ReportedWith Exclusions
(Non-GAAP)
 Three Months EndedThree Months Ended
 December 31, 2020September 30, 2020December 31, 2019December 31, 2020September 30, 2020December 31, 2019
Return on average assets0.84 %0.80 %1.16 %1.02 %0.79 %1.13 %
Return on average tangible assets (Non-GAAP)0.94 %0.89 %1.30 %1.13 %0.89 %1.27 %
Return on average equity5.88 %5.63 %7.15 %7.11 %5.60 %6.97 %
Return on average tangible equity (Non-GAAP)11.26 %10.87 %13.75 %13.52 %10.81 %13.41 %

        

 As ReportedWith Exclusions
(Non-GAAP)
 Twelve Months EndedTwelve Months Ended
 December 31, 2020 December 31, 2019December 31, 2020 December 31, 2019
Return on average assets0.58 % 1.30 %0.75 % 1.31 %
Return on average tangible assets (Non-GAAP)0.66 % 1.46 %0.85 % 1.48 %
Return on average equity3.96 % 7.95 %5.16 % 8.03 %
Return on average tangible equity (Non-GAAP)7.83 % 15.36 %10.06 % 15.51 %

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

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

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

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

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

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

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

Net interest margin was 3.35% for the fourth quarter of 2020, as compared to 3.29% for the third quarter of 2020 and 3.90% for the fourth quarter of 2019. Net interest margin was 3.44% for all of 2020, as compared to 4.08% for 2019. While pressures on loans yields continued in the quarter, the impact was somewhat offset by lower deposit costs. The following tables present the percentage of total average earning assets, by type and yield, for the periods presented:

 Percentage of Total Average Earning AssetsYield
 Three Months EndedThree Months Ended
 December 31, September 30,December 31,December 31,September 30,December 31,
 202020202019202020202019
Loans held for investment excluding PPP loans74.79 %74.70 %83.87 %4.20 %4.30 %5.11 %
PPP loans9.59  10.01  —  3.26  2.27  —  
Loans held for sale2.98  2.90  3.11  3.15  3.31  3.58  
Securities9.72  9.74  10.95  2.25  2.41  2.92  
Other2.92  2.65  2.07  0.10  0.10  1.89  
Total earning assets100.00 %100.00 %100.00 %3.77 %3.77 %4.75 %


 Percentage of Total Average Earning AssetsYield
 Twelve Months EndedTwelve Months Ended
 December 31,December 31,December 31,December 31,
 2020201920202019
Loans held for investment excluding PPP loans77.13 %83.15 %4.47 %5.31 %
PPP loans6.80  —  2.75  —  
Loans held for sale2.86  3.25  3.37  5.07  
Securities10.15  11.28  2.57  3.02  
Other3.06  2.32  0.31  2.30  
Total earning assets100.00 %100.00 %4.00 %4.98 %

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

 Three Months Ended
 December 31,September 30,December 31,
 202020202019
Taxable equivalent net interest income$110,024  $107,885  $110,856  
Average earning assets$13,059,967  $13,034,422  $11,277,000  
Net interest margin3.35 %3.29 %3.90 %
    
Taxable equivalent interest income on loans$116,540  $115,908  $124,919  
Average loans, including loans held for sale$11,408,940  $11,419,909  $9,808,441  
Loan yield4.06 %4.04 %5.05 %


 Twelve Months Ended
 December 31,December 31,
 20202019
Taxable equivalent net interest income$433,682  $449,986  
Average earning assets$12,622,461  $11,028,040  
Net interest margin3.44 %4.08 %
   
Taxable equivalent interest income on loans$470,877  $505,411  
Average loans, including loans held for sale$10,954,947  $9,527,290  
Loan yield4.30 %5.30 %

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

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

    
 Three Months Ended
 December 31,September 30,December 31,
 202020202019
Net interest income collected on problem loans$128  $282  $152  
Accretable yield recognized on purchased loans(1)4,130  4,949  6,661  
Total impact to interest income$4,258  $5,231  $6,813  
    
Impact to total loan yield0.15 %0.18 %0.28 %
    
Impact to net interest margin0.13 %0.16 %0.24 %

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

   
 Twelve Months Ended
 December 31,December 31,
 20202019
Net interest income collected on problem loans$1,011  $4,042  
Accretable yield recognized on purchased loans(1)19,248  27,227  
Total impact to interest income$20,259  $31,269  
   
Impact to total loan yield0.18 %0.33 %
   
Impact to net interest margin0.16 %0.28 %

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

For the fourth quarter of 2020, the cost of total deposits was 33 basis points, as compared to 40 basis points for the third quarter of 2020 and 76 basis points for the fourth quarter of 2019. The cost of total deposits was 47 basis points for the year ended December 31, 2020, as compared to 81 basis points for same period in 2019. The tables below present, by type, the Company’s funding sources and the total cost of each funding source for the periods presented:

 Percentage of Total Average Deposits and Borrowed Funds Cost of Funds
 Three Months Ending Three Months Ending
 December 31, September 30, December 31,  December 31, September 30, December 31,
 2020 2020 2019 2020 2020 2019
Noninterest-bearing demand30.43 % 29.66 % 24.12 % — % — % — %
Interest-bearing demand44.81   43.06   43.86   0.31   0.36   0.81  
Savings6.63   6.35   6.11   0.08   0.08   0.17  
Time deposits14.00   15.20   20.41   1.20   1.42   1.76  
Borrowed funds4.13   5.73   5.50   3.05   2.20   3.02  
Total deposits and borrowed funds100.00 % 100.00 % 100.00 % 0.44 % 0.50 % 0.89 %


        
 Percentage of Total Average Deposits and Borrowed Funds Cost of Funds
 Twelve Months Ending Twelve Months Ending
 December 31, December 31,  December 31, December 31,
 2020 2019 2020 2019
Noninterest-bearing demand27.91 % 23.26 % — % — %
Interest-bearing demand43.43   44.89   0.45   0.86  
Savings6.29   6.11   0.10   0.19  
Time deposits16.07   21.91   1.50   1.71  
Borrowed funds6.30   3.83   2.26   4.17  
Total deposits and borrowed funds100.00 % 100.00 % 0.59 % 0.93 %

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

 Three Months Ended
 December 31, 2020September 30, 2020December 31, 2019
Gain on sales of loans, net$36,080 $45,985 $10,438 
Fees, net5,318 5,367 3,023 
Mortgage servicing income, net(3,606)(2,466)408 
MSR valuation adjustment1,968 828 1,296 
Mortgage banking income, net$39,760 $49,714 $15,165 


 Twelve Months Ended
 December 31, 2020December 31, 2019
Gain on sales of loans, net$150,406 $45,854 
Fees, net18,914 11,385 
Mortgage servicing income, net(7,095)2,493 
MSR valuation adjustment(11,726)(1,836)
Mortgage banking income, net$150,499 $57,896 

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

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

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

The table below shows nonperforming assets, which includes nonperforming loans (loans 90 days or more past due and nonaccrual loans) and other real estate owned, as well as early stage delinquencies (loans 30-89 days past due) for the periods presented (in thousands).

 December 31, 2020December 31, 2019
 Non PurchasedPurchasedTotalNon PurchasedPurchasedTotal
Nonaccrual loans$20,369 $31,051 $51,420 $21,509 $7,038 $28,547 
Loans 90 days past due or more3,783 267 4,050 3,458 4,317 7,775 
Nonperforming loans$24,152 $31,318 $55,470 $24,967 $11,355 $36,322 
Other real estate owned2,045 3,927 5,972 2,762 5,248 8,010 
Nonperforming assets$26,197 $35,245 $61,442 $27,729 $16,603 $44,332 
Nonperforming loans/total loans  0.51%  0.37%
Nonperforming loans/total loans excluding PPP loans  0.57%   
Nonperforming assets/total assets  0.41%  0.33%
Nonperforming assets/total assets excluding PPP loans  0.45%   
Loans 30-89 days past due$17,635 $8,651 $26,286 $22,781 $14,887 $37,668 
Loans 30-89 days past due/total loans  0.24%  0.39%

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

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

 January 1, 2020March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Allowance for credit losses on loans$94,647  $120,185  $145,387  $168,098  $176,144  
Allowance for credit losses on deferred interest—  —  —  —  1,500  
Reserve for unfunded commitments11,336  14,735  17,335  20,035  20,535  
Total reserves$105,983  $134,920  $162,722  $188,133  $198,179  
Allowance for credit losses on loans/total loans0.98 %1.23 %1.32 %1.52 %1.61 %
Allowance for credit losses on loans/total loans excluding PPP loans—  —  1.50 %1.72 %1.80 %
Reserve for unfunded commitments/total unfunded commitments0.47 %0.60 %0.66 %0.73 %0.73 %

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

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

CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time (9:00 AM Central Time) on Wednesday, January 27, 2021.

The webcast can be accessed through Renasant’s investor relations website at investors.renasant.com or https://services.choruscall.com/links/rnst210127.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2020 Fourth Quarter Earnings Conference Call and Webcast. International participants should dial 1-412-902-4145 to access the conference call.

The webcast will be archived on investors.renasant.com beginning one hour after the call and will remain accessible for one year. Replays can also be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 10151152 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 10, 2021.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 116-year-old financial services institution. Renasant has assets of approximately $14.9 billion and operates more than 200 banking, lending, mortgage, wealth management and insurance offices in Mississippi, Tennessee, Alabama, Florida, Georgia, North Carolina and South Carolina.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

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

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

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

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

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

NON-GAAP FINANCIAL MEASURES:

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains non-GAAP financial measures, namely, earnings, with exclusions, return on average tangible shareholders’ equity, return on average tangible assets, the ratio of tangible equity to tangible assets (commonly referred to as the “tangible capital ratio”), tangible book value per share and the adjusted efficiency ratio. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and/or certain charges (such as, when applicable, COVID-19 related expenses, restructuring charges, merger and conversion expenses, debt prepayment penalties, swap termination charges and asset valuation adjustments) with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof. With respect to COVID-19 related expenses in particular, management added these expenses as a charge to exclude when calculating non-GAAP financial measures because the expenses included within this line item (as discussed earlier in this release) are readily quantifiable and possess the same characteristics with respect to management’s inability to accurately predict the timing or amount thereof as the other charges excluded when calculating non-GAAP financial measures. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible and charges such as merger and conversion expenses, restructuring charges and COVID-19 related expenses can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution’s regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company’s results to information provided in other regulatory reports and the results of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption “Reconciliation of GAAP to Non-GAAP.”

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

Contacts:For Media:For Financials:
 John OxfordJames C. Mabry IV
 Senior Vice PresidentExecutive Vice President
 Director of MarketingChief Financial Officer
 (662) 680-1219(662) 680-1281
 joxford@renasant.comjim.mabry@renasant.com


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



RENASANT CORPORATION                                    
(Unaudited)                                    
(Dollars in thousands, except per share data)                                    
                                       
  Three Months Ending For The Twelve Months Ending 
  December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020   December 31, 2019 
  Average Interest Yield/   Average Interest Yield/   Average Interest Yield/    Average   Interest Yield/     Average   Interest Yield/   
BalanceIncome/ RateBalanceIncome/ RateBalanceIncome/ Rate  Balance   Income/ Rate   Balance   Income/  Rate 
 Expense  Expense  Expense       Expense        Expense   
Assets                                                     
Interest-earning assets:                                                     
Loans                                                     
Non purchased $8,167,922   $81,626   3.98 % $8,012,741   $81,281   4.04 % $7,258,517   $87,482   4.78 % $7,927,817   $333,296  4.20 % $6,784,132   $337,672  4.98 %
Purchased 1,598,593   21,560   5.37 % 1,723,714   24,034   5.55 % 2,199,141   34,270   6.18 % 1,807,354   101,785  5.63 % 2,384,423   149,568  6.27 %
SBA Paycheck Protection Program 1,252,990   10,271   3.26 % 1,305,229   7,449   2.27 % —   —   — % 858,385   23,605  2.75 % —   —  — %
Total loans 11,019,505   113,457   4.10 % 11,041,684   112,764   4.06 % 9,457,658   121,752   5.11 % 10,593,556   458,686  4.33 % 9,168,555   487,240  5.31 %
Loans held for sale 389,435   3,083   3.15 % 378,225   3,144   3.31 % 350,783   3,167   3.58 % 361,391   12,191  3.37 % 358,735   18,171  5.07 %
Securities:                            
Taxable(1) 985,695   4,953   2.00 % 1,003,886   5,473   2.17 % 1,018,076   6,994   2.73 % 1,021,999   24,102  2.36 % 1,051,124   29,786  2.83 %
Tax-exempt 283,413   2,238   3.14 % 265,679   2,205   3.30 % 216,642   2,093   3.83 % 259,705   8,848  3.41 % 193,252   7,821  4.05 %
Total securities 1,269,108   7,191   2.25 % 1,269,565   7,678   2.41 % 1,234,718   9,087   2.92 % 1,281,704   32,950  2.57 % 1,244,376   37,607  3.02 %
Interest-bearing balances with banks 381,919   92   0.10 % 344,948   91   0.10 % 233,841   1,113   1.89 % 385,810   1,190  0.31 % 256,374   5,891  2.30 %
Total interest-earning assets 13,059,967   123,823   3.77 % 13,034,422   123,677   3.77 % 11,277,000   135,119   4.75 % 12,622,461   505,017  4.00 % 11,028,040   548,909  4.98 %
Cash and due from banks 196,552       210,278       176,582       201,815      179,991     
Intangible assets 970,624       972,394       977,506       973,287      976,065     
Other assets 670,912       711,065       726,755       705,886      691,890     
Total assets $14,898,055       $14,928,159       $13,157,843       $14,503,449      $12,875,986     
Liabilities and shareholders’ equity                            
Interest-bearing liabilities:                            
Deposits:                            
Interest-bearing demand(2) $5,607,906   $4,380   0.31 % $5,405,085   $4,839   0.36 % $4,749,018   $9,653   0.81 % $5,277,374   $23,995  0.45 % $4,754,201   $40,991  0.86 %
Savings deposits 830,304   165   0.08 % 796,841   167   0.08 % 661,362   282   0.17 % 764,146   758  0.10 % 647,271   1,258  0.19 %
Time deposits 1,752,787   5,296   1.20 % 1,907,918   6,804   1.42 % 2,210,222   9,783   1.76 % 1,952,213   29,263  1.50 % 2,320,775   39,746  1.71 %
Total interest-bearing deposits 8,190,997   9,841   0.48 % 8,109,844   11,810   0.58 % 7,620,602   19,718   1.03 % 7,993,733   54,016  0.68 % 7,722,247   81,995  1.06 %
Borrowed funds 516,414   3,958   3.05 % 719,800   3,982   2.20 % 596,101   4,545   3.02 % 765,769   17,319  2.26 % 405,975   16,928  4.17 %
Total interest-bearing liabilities 8,707,411   13,799   0.63 % 8,829,644   15,792   0.71 % 8,216,703   24,263   1.17 % 8,759,502   71,335  0.81 % 8,128,222   98,923  1.22 %
Noninterest-bearing deposits 3,808,595       3,723,059       2,611,265       3,391,619      2,463,436     
Other liabilities 249,674       255,956       198,533       237,738      176,496     
Shareholders’ equity 2,132,375       2,119,500       2,131,342       2,114,590      2,107,832     
Total liabilities and shareholders’ equity $14,898,055       $14,928,159       $13,157,843       $14,503,449      $12,875,986     
Net interest income/ net interest margin   $110,024   3.35 %   $107,885   3.29 %   $110,856   3.90 %   $433,682  3.44 %   $449,986  4.08 %
Cost of funding     0.44 %     0.50 %     0.89 %    0.59 %    0.93 %
Cost of total deposits     0.33 %     0.40 %     0.76 %    0.47 %    0.81 %
                             
(1) U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which we operate.          
(2) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.          
                                       



RENASANT CORPORATION                       
(Unaudited)                       
(Dollars in thousands, except per share data)                 
     RECONCILIATION OF GAAP TO NON-GAAP   
                       Twelve Months Ended
     2020 2019   December 31,
     Fourth Third Second First Fourth Third Second First      
  Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter   2020 2019
Net income (GAAP) $31,521  $29,992  $20,130  $2,008  $38,415  $37,446  $46,625  $45,110    $83,651  $167,596 
 Amortization of intangibles 1,659  1,733  1,834  1,895  1,946  1,996  2,053  2,110    7,121  8,105 
 Tax effect of adjustment noted above (A) (297) (374) (335) (527) (383) (457) (473) (488)   (1,382) (1,807)
Tangible net income (non-GAAP) $32,883  $31,351  $21,629  $3,376  $39,978  $38,985  $48,205  $46,732    $89,390  $173,894 
                          
Net income (GAAP) $31,521  $29,992  $20,130  $2,008  $38,415  $37,446  $46,625  $45,110    $83,651  $167,596 
 Merger & conversion expenses         76  24  179        279 
 Debt prepayment penalties 3  28  90      54        121  54 
 MSR valuation adjustment (1,968) (828) 4,951  9,571  (1,296) 3,132        11,726  1,836 
 Restructuring charges 7,365                  7,365   
 Swap termination charges 2,040                  2,040   
 COVID-19 related expenses 613  570  6,257  2,903            10,343   
 Tax effect of adjustment noted above (A) (1,443) 50  (2,065) (3,467) 241  (736) (41)     (6,131) (484)
Net income with exclusions (non-GAAP) $38,131  $29,812  $29,363  $11,015  $37,436  $39,920  $46,763  $45,110    $109,115  $169,281 
                          
Average shareholders’ equity (GAAP) $2,132,375  $2,119,500  $2,101,092  $2,105,143  $2,131,342  $2,131,537  $2,102,093  $2,065,370    $2,114,590  $2,107,832 
 Intangibles 970,624  972,394  974,237  975,933  977,506  975,306  974,628  976,820    973,287  976,065 
Average tangible s/h’s equity (non-GAAP) $1,161,751  $1,147,106  $1,126,855  $1,129,210  $1,153,836  $1,156,231  $1,127,465  $1,088,550    $1,141,303  $1,131,767 
                          
Average total assets (GAAP) $14,898,055  $14,928,159  $14,706,027  $13,472,550  $13,157,843  $12,846,131  $12,764,669  $12,730,939    $14,503,449  $12,875,986 
 Intangibles 970,624  972,394  974,237  975,933  977,506  975,306  974,628  976,820    973,287  976,065 
Average tangible assets (non-GAAP) $13,927,431  $13,955,765  $13,731,790  $12,496,617  $12,180,337  $11,870,825  $11,790,041  $11,754,119    $13,530,162  $11,899,921 
                          
Actual shareholders’ equity (GAAP) $2,132,578  $2,104,300  $2,082,946  $2,070,512  $2,125,689  $2,119,659  $2,119,696  $2,088,877    $2,132,578  $2,125,689 
 Intangibles 969,823  971,481  973,214  975,048  976,943  978,390  973,673  975,726    969,823  976,943 
Actual tangible s/h’s equity (non-GAAP) $1,162,755  $1,132,819  $1,109,732  $1,095,464  $1,148,746  $1,141,269  $1,146,023  $1,113,151    $1,162,755  $1,148,746 
                          
Actual total assets (GAAP) $14,929,666  $14,808,933  $14,897,207  $13,890,550  $13,400,618  $13,039,674  $12,892,653  $12,862,395    $14,929,666  $13,400,618 
 Intangibles 969,823  971,481  973,214  975,048  976,943  978,390  973,673  975,726    969,823  976,943 
Actual tangible assets (non-GAAP) $13,959,843  $13,837,452  $13,923,993  $12,915,502  $12,423,675  $12,061,284  $11,918,980  $11,886,669    $13,959,843  $12,423,675 
                          
 (A) Tax effect is calculated based on respective periods effective tax rate.          



RENASANT CORPORATION                       
(Unaudited)                       
(Dollars in thousands, except per share data)                 
     RECONCILIATION OF GAAP TO NON-GAAP   
                       Twelve Months Ended
     2020 2019   December 31,
     Fourth Third Second First Fourth Third Second First      
  Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter   2020 2019
(1) Return on Average Equity                      
Return on avg s/h’s equity (GAAP) 5.88 % 5.63  % 3.85 % 0.38 % 7.15  % 6.97 % 8.90 % 8.86 %   3.96 % 7.95 %
 Effect of adjustment for intangible assets 5.38 % 5.24  % 3.87 % 0.82 % 6.60  % 6.41 % 8.25 % 8.55 %   3.87 % 7.41 %
Return on avg tangible s/h’s equity (non-GAAP) 11.26 % 10.87  % 7.72 % 1.20 % 13.75  % 13.38 % 17.15 % 17.41 %   7.83 % 15.36 %
                          
Return on avg s/h’s equity (GAAP) 5.88 % 5.63  % 3.85 % 0.38 % 7.15  % 6.97 % 8.90 % 8.86 %   3.96 % 7.95 %
 Effect of exclusions from net income 1.23 % (0.03)% 1.77 % 1.72 % (0.18)% 0.46 % 0.02 % — %   1.20 % 0.80 %
Return on avg s/h’s equity with excl. (non-GAAP) 7.11 % 5.60  % 5.62 % 2.10 % 6.97  % 7.43 % 8.92 % 8.86 %   5.16 % 8.03 %
 Effect of adjustment for intangible assets 6.41 % 5.21  % 5.39 % 2.31 % 6.44  % 6.80 % 8.28 % 8.55 %   4.90 % 7.48 %
Return on avg tangible s/h’s equity with exclusions (non-GAAP) 13.52 % 10.81  % 11.01 % 4.41 % 13.41  % 14.23 % 17.20 % 17.41 %   10.06 % 15.51 %
                          
(2) Return on Average Assets                      
Return on avg assets (GAAP) 0.84 % 0.80  % 0.55 % 0.06 % 1.16  % 1.16 % 1.47 % 1.44 %   0.58 % 1.30 %
 Effect of adjustment for intangible assets 0.10 % 0.09  % 0.08 % 0.05 % 0.14  % 0.14 % 0.17 % 0.17 %   0.08 % 0.16 %
Return on avg tangible assets (non-GAAP) 0.94 % 0.89  % 0.63 % 0.11 % 1.30  % 1.30 % 1.64 % 1.61 %   0.66 % 1.46 %
                          
Return on avg assets (GAAP) 0.84 % 0.80  % 0.55 % 0.06 % 1.16  % 1.16 % 1.47 % 1.44 %   0.58 % 1.30 %
 Effect of exclusions from net income 0.18 % (0.01)% 0.25 % 0.27 % (0.03)% 0.07 % — % — %   0.17 % 0.01 %
Return on avg assets with exclusions (non-GAAP) 1.02 % 0.79  % 0.80 % 0.33 % 1.13  % 1.23 % 1.47 % 1.44 %   0.75 % 1.31 %
 Effect of adjustment for intangible assets 0.11 % 0.10  % 0.10 % 0.07 % 0.14  % 0.16 % 0.17 % 0.17 %   0.10 % 0.17 %
Return on avg tangible assets with exclusions (non-GAAP) 1.13 % 0.89  % 0.90 % 0.40 % 1.27  % 1.39 % 1.64 % 1.61 %   0.85 % 1.48 %
                          
(3) Shareholder Equity Ratio                       
Shareholders’ equity to actual assets (GAAP) 14.28 % 14.21  % 13.98 % 14.91 % 15.86  % 16.26 % 16.44 % 16.24 %   14.28 % 15.86 %
 Effect of adjustment for intangible assets 5.95 % 6.02  % 6.01 % 6.43 % 6.61  % 6.80 % 6.82 % 6.88 %   5.95 % 6.61 %
Tangible capital ratio (non-GAAP) 8.33 % 8.19  % 7.97 % 8.48 % 9.25  % 9.46 % 9.62 % 9.36 %   8.33 % 9.25 %
                                    



RENASANT CORPORATION                       
(Unaudited)                       
(Dollars in thousands, except per share data)                       
                          
                          
                    Twelve Months Ended
   2020 2019  December 31,
   Fourth Third Second First Fourth Third Second First     
   Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter  2020 2019
Interest income (FTE)$123,823  $123,677  $125,630   $131,887   $135,119  $135,927   $139,285   $138,578   $505,017   $548,909  
 Interest expense13,799  15,792  18,173   23,571   24,263  25,651   25,062   23,947   71,335   98,923  
Net Interest income (FTE)$110,024  $107,885  $107,457   $108,316   $110,856  $110,276   $114,223   $114,631   $433,682   $449,986  
                       
Total noninterest income$62,864  $70,928  $64,170   $37,570   $37,456  $37,953   $41,960   $35,885   $235,532   $153,254  
 Securities gains (losses)15    31        343   (8)  13   46   348  
 MSR valuation adjustment1,968  828  (4,951)  (9,571)  1,296  (3,132)        (11,726)  (1,836) 
Total adjusted noninterest income$60,881  $70,100  $69,090   $47,141   $36,160  $40,742   $41,968   $35,872   $247,212   $154,742  
                       
Total noninterest expense$122,152  $116,510  $118,285   $115,041   $95,552  $96,500   $93,290   $88,832   $471,988   $374,174  
 Amortization of intangibles1,659  1,733  1,834   1,895   1,946  1,996   2,053   2,110   7,121   8,105  
 Merger-related expenses          76  24   179         279  
 Debt prepayment penalty3  28  90        54         121   54  
 Restructuring charges7,365                     7,365     
 Swap termination charges2,040                     2,040     
 COVID-19 related expenses613  570  6,257   2,903              10,343     
 Provision for unfunded commitments500  2,700  2,600   3,400              9,200     
Total adjusted noninterest expense$109,972  $111,479  $107,504   $106,843   $93,530  $94,426   $91,058   $86,722   $435,798   $365,736  
                       
Efficiency Ratio (GAAP)70.65% 65.16% 68.92 % 78.86 % 64.43% 65.10 % 59.73 % 59.02%  70.53 % 62.03 %
(4) Adjusted Efficiency Ratio (non-GAAP)64.35% 62.63% 60.89 % 68.73 % 63.62% 62.53 % 58.30 % 57.62%  64.00 % 60.48 %