EX-99.1 2 exhibit991_rnstx4q2020earn.htm EX-99.1 Document



ex991rnstcorpimagea191a.jpg



Contacts:For Media:For Financials:
John Oxford
James 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 ANNOUNCES
EARNINGS FOR THE FOURTH QUARTER OF 2020

TUPELO, MISSISSIPPI (January 26, 2021) - 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
1


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 EndedTwelve Months Ended
December 31, 2020December 31, 2020
Pre-taxAfter-taxImpact to Diluted EPSPre-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 EndedTwelve Months Ended
December 31, 2019December 31, 2019
Pre-taxAfter-taxImpact to Diluted EPSPre-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 
2



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, 2020December 31, 2019December 31, 2020December 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.

3


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:
4


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 sale 2.98 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 sale 2.86 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 %

5


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 %
6


(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 FundsCost of Funds
Three Months EndingThree Months Ending
 December 31,September 30,December 31, December 31,September 30,December 31,
 202020202019202020202019
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 FundsCost of Funds
Twelve Months EndingTwelve Months Ending
 December 31,December 31, December 31,December 31,
 2020201920202019
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):
7


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
8


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 more3,7832674,050 3,4584,3177,775 
Nonperforming loans$24,152 $31,318 $55,470 $24,967 $11,355 $36,322 
Other real estate owned2,0453,9275,972 2,7625,2488,010 
Nonperforming assets$26,197 $35,245 $61,442 $27,729 $16,603 $44,332 
Nonperforming loans/total loans0.51 %0.37 %
Nonperforming loans/total loans excluding PPP loans0.57 %— 
Nonperforming assets/total assets0.41 %0.33 %
Nonperforming assets/total assets excluding PPP loans0.45 %— 
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 loans0.24 %0.39 %

9


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.


10


CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time (9:00 AM Central Time) on Wednesday, January 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.
11



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.
12



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.


###
13




RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
Q4 2020- Twelve Months Ended
20202019Q4 2019December 31,
FourthThirdSecondFirstFourthThirdSecondFirstPercentPercent
QuarterQuarterQuarterQuarterQuarterQuarterQuarterQuarterVariance20202019Variance
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 expense13,799 15,792 18,173 23,571 24,263 25,651 25,062 23,947 (43.13)71,335 98,923 (27.89)
Net interest income108,127 106,286 105,782 106,602 108,885 108,825 112,800 113,147 (0.70)426,797 443,657 (3.80)
Provision for credit losses10,500 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 provision97,627 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 accounts7,938 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 deposits3,616 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 fees2,193 2,681 2,125 1,991 2,105 2,508 2,190 2,116 4.18 8,990 8,919  0.80 
Wealth management revenue4,314 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 income39,760 49,714 45,490 15,535 15,165 15,710 16,620 10,401 162.18 150,499 57,896 159.95 
Other5,028 3,281 2,897 3,918 4,171 3,722 3,905 4,458 20.55 15,124 16,256 (6.96)
Total noninterest income62,864 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 benefits74,432 75,406 79,361 73,189 67,684 65,425 60,325 57,350 9.97 302,388 250,784 20.58 
Data processing5,373 5,259 5,047 5,006 5,095 4,980 4,698 4,906 5.46 20,685 19,679 5.11 
Occupancy and equipment13,153 13,296 13,511 14,120 13,231 12,943 11,544 11,835 (0.59)54,080 49,553 9.14 
Other real estate683 1,033 620 418 339 418 252 1,004 101.47 2,754 2,013 36.81 
Amortization of intangibles1,659 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 charges7,365 — — — — — — — — 7,365 — — 
Swap termination charges2,040 — — — — — — — — 2,040 — — 
Debt prepayment penalty3 28 90 — — 54 — — — 121 54 124.07 
Other17,444 19,755 17,822 20,413 7,181 10,660 14,239 11,627 142.92  75,434 43,707 72.59 
Total noninterest expense122,152 116,510 118,285 115,041 95,552 96,500 93,290 88,832 27.84  471,988 374,174 26.14 
Income before income taxes38,339 37,604 24,767 2,781 47,839 48,578 60,570 58,700 (19.86)103,491 215,687 (52.02)
Income taxes6,818 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 share0.56 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 outstanding56,197,847 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 outstanding56,489,809 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 outstanding56,200,487 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 assets0.84 %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 funding0.44 %0.50 %0.59 %0.85 %0.89 %0.97 %0.96 %0.92 %0.59 %0.93 %
Average earning assets to average assets87.66 %87.31 %86.88 %86.17 %85.71 %85.58 %85.72 %85.58 %87.03 %85.65 %
Average loans to average deposits91.83 %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 assets1.68 %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 assets3.26 %3.10 %3.23 %3.43 %2.88 %2.98 %2.93 %2.83 %3.25 %2.91 %
Net overhead ratio1.58 %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 %
14


RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
Q4 2020 -As of
20202019Q4 2019December 31,
FourthThirdSecondFirstFourthThirdSecondFirstPercentPercent
QuarterQuarterQuarterQuarterQuarterQuarterQuarterQuarterVariance20202019Variance
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 assets13,059,967 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 
Securities1,269,108 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 sale389,435 378,225 340,582 336,829 350,783 385,437 353,103 345,264 11.02 361,391 358,735 0.74 
Loans, net of unearned income11,019,505 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 
Intangibles970,624 972,394 974,237 975,933 977,506 975,306 974,628 976,820 (0.70)973,287 976,065 (0.28)
Noninterest-bearing deposits3,808,595 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 deposits8,190,997 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 deposits11,999,592 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 funds516,414 719,800 1,000,789 829,320 596,101 308,931 354,234 363,140 (13.37)765,769 405,975 88.62 
Shareholders' equity2,132,375 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
20202019Q4 2019December 31,
FourthThirdSecondFirstFourthThirdSecondFirstPercentPercent
QuarterQuarterQuarterQuarterQuarterQuarterQuarterQuarterVariance20202019Variance
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 assets13,151,707 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 
Securities1,343,457 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 sale417,771 399,773 339,747 448,797 318,272 392,448 461,681 318,563 31.26 417,771 318,272 31.26 
Non purchased loans9,419,540 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 loans1,514,107 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 loans10,933,647 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 
Intangibles969,823 971,481 973,214 975,048 976,943 978,390 973,673 975,726 (0.73)969,823 976,943 (0.73)
Noninterest-bearing deposits3,685,048 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 deposits8,374,033 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 deposits12,059,081 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 funds496,519 517,706 718,490 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 share33.68 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 share37.95 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 share20.69 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 ratio9.37 %9.17 %9.12 %9.90 %10.37 %10.56 %10.65 %10.44 %9.37 %10.37 %
Common equity tier 1 capital ratio10.93 %10.80 %10.69 %10.63 %11.12 %11.36 %11.64 %11.49 %10.93 %11.12 %
Tier 1 risk-based capital ratio11.91 %11.79 %11.69 %11.63 %12.14 %12.40 %12.69 %12.55 %11.91 %12.14 %
Total risk-based capital ratio15.07 %14.89 %13.72 %13.44 %13.78 %14.07 %14.62 %14.57 %15.07 %13.78 %
15


RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
Q4 2020 -As of
20202019Q4 2019December 31,
FourthThirdSecondFirstFourthThirdSecondFirstPercentPercent
QuarterQuarterQuarterQuarterQuarterQuarterQuarterQuarterVariance20202019Variance
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 Program1,128,703 1,307,972 1,281,278 — — — — — — 1,128,703 — — 
Lease financing75,862 82,928 80,779 84,679 81,875 69,953 59,158 58,651 (7.34)75,862 81,875 (7.34)
Real estate - construction827,152 738,873 756,872 745,066 774,901 764,589 716,129 651,119 6.74 827,152 774,901 6.74 
Real estate - 1-4 family mortgages2,356,564 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 mortgages3,649,629 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 individuals149,862 177,195 208,502 229,856 199,843 163,031 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 - construction30,952 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 mortgages341,744 391,102 445,526 489,674 516,487 561,725 604,855 654,265 (33.83)341,744 516,487 (33.83)
Real estate - commercial mortgages905,223 966,367 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 individuals59,675 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 more3,783 1,826 3,993 4,459 3,458 7,325 4,175 1,192 9.40 3,783 3,458 9.40 
Nonperforming loans24,152 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 owned2,045 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 more267 318 2,158 5,104 4,317 7,034 7,687 5,436 (93.82)267 4,317 (93.82)
Nonperforming loans31,318 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 owned3,927 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 loans0.03 %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


16


RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
Three Months EndingTwelve Months Ended
December 31, 2020September 30, 2020December 31, 2019December 31, 2020December 31, 2019
Average
Balance		Interest
Income/
Expense		Yield/  
 Rate		Average
Balance		Interest
Income/
Expense		Yield/  
 Rate		Average
Balance		Interest
Income/
Expense		Yield/  
 Rate		Average
Balance		Interest
Income/
Expense		Yield/  
 Rate		Average
Balance		Interest
Income/
Expense		Yield/  
 Rate
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 %
Purchased1,598,593 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 Program1,252,990 10,271 3.26 %1,305,229 7,449 2.27 %— — — %858,385 23,605 2.75 %— — — %
Total loans11,019,505 113,457 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 sale389,435 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 securities1,269,108 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 banks381,919 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 assets13,059,967 123,823 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 banks196,552 210,278 176,582 201,815 179,991 
Intangible assets970,624 972,394 977,506 973,287 976,065 
Other assets670,912 711,065 726,755 705,886 691,890 
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 deposits830,304 165 0.08 %796,841 167 0.08 %661,362 282 0.17 %764,146 758 0.10 %647,271 1,258 0.19 %
Time deposits1,752,787 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 deposits8,190,997 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 funds516,414 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 liabilities8,707,411 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 deposits3,808,595 3,723,059 2,611,265 3,391,619 2,463,436 
Other liabilities249,674 255,956 198,533 237,738 176,496 
Shareholders’ equity2,132,375 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 funding0.44 %0.50 %0.89 %0.59 %0.93 %
Cost of total deposits0.33 %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.








17



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
RECONCILIATION OF GAAP TO NON-GAAP
Twelve Months Ended
20202019December 31,
FourthThirdSecondFirstFourthThirdSecondFirst
QuarterQuarterQuarterQuarterQuarterQuarterQuarterQuarter20202019
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 intangibles1,659 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 penalties3 28 90 — — 54 — — 121 54 
MSR valuation adjustment(1,968)(828)4,951 9,571 (1,296)3,132 — — 11,726 1,836 
Restructuring charges7,365 — — — — — — — 7,365 — 
Swap termination charges2,040 — — — — — — — 2,040 — 
COVID-19 related expenses613 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 
Intangibles970,624 972,394 974,237 975,933 977,506 975,306 974,628 976,820 973,287 976,065 
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 
Intangibles970,624 972,394 974,237 975,933 977,506 975,306 974,628 976,820 973,287 976,065 
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 
Intangibles969,823 971,481 973,214 975,048 976,943 978,390 973,673 975,726 969,823 976,943 
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 
Intangibles969,823 971,481 973,214 975,048 976,943 978,390 973,673 975,726 969,823 976,943 
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.
18


RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
RECONCILIATION OF GAAP TO NON-GAAP
Twelve Months Ended
20202019December 31,
FourthThirdSecondFirstFourthThirdSecondFirst
QuarterQuarterQuarterQuarterQuarterQuarterQuarterQuarter20202019
(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 assets5.38 %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 income1.23 %(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 assets6.41 %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 assets0.10 %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 income0.18 %(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 assets0.11 %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 assets5.95 %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 %

19


RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
Twelve Months Ended
20202019December 31,
FourthThirdSecondFirstFourthThirdSecondFirst
QuarterQuarterQuarterQuarterQuarterQuarterQuarterQuarter20202019
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 %

20