TUPELO, Miss., April 26, 2022 (GLOBE NEWSWIRE) -- Renasant Corporation (NASDAQ:RNST) (the "Company") today announced earnings results for the first quarter of 2022. Net income for the first quarter of 2022 was $33.5 million, as compared to $57.9 million for the first quarter of 2021. Basic and diluted earnings per share ("EPS") were $0.60 for the first quarter of 2022, as compared to basic and diluted EPS of $1.03 and $1.02, respectively, for the first quarter of 2021.

"Our first quarter results were highlighted by strong loan growth and continued progress in expense management. The core deposit base continued to grow, and our credit metrics remain strong," commented C. Mitchell Waycaster, Renasant President and Chief Executive Officer. "We continue to focus on growth and improving profitability and remain committed to maintaining a strong balance sheet that prioritizes core deposits, capital strength and credit quality."

Quarterly Highlights

Earnings

Net income for the first quarter of 2022 was $33.5 million with diluted EPS of $0.60
Net interest income (fully tax equivalent) for the first quarter of 2022 was $101.4 million, a decrease of $1.9 million from the fourth quarter of 2021
For the first quarter of 2022, net interest margin was 2.76%, down 5 basis points on a linked quarter basis
Cost of total deposits was 17 basis points for the first quarter of 2022, down 1 basis point on a linked quarter basis
Wealth management and insurance produced strong results during the first quarter of 2022
The mortgage division generated $1.2 billion in interest rate lock volume during the first quarter of 2022, which is in line with interest rate lock volume production during the fourth quarter of 2021
First quarter noninterest expense decreased by $7.0 million on a linked quarter basis, primarily driven by the decrease in the debt prepayment penalty of $6.1 million recognized in the fourth quarter of 2021 and a decrease in data processing due to savings realized from contract re-negotiations

Balance Sheet

Loans increased $292.5 million during the first quarter of 2022 from year-end; excluding loans acquired during the quarter (as discussed immediately below), loans increased $264.4 million, which represents 10.70% annualized net loan growth. The balance of Paycheck Protection Program ("PPP") loans was $8.4 million at March 31, 2022
The Company completed the acquisition of Southeastern Commercial Finance, LLC, an asset-based lending company headquartered in Birmingham, Alabama, on March 1, 2022, which added $28.1 million in loans on the date of acquisition
The securities portfolio increased $90.1 million during the first quarter of 2022 from year-end; this included net additions to the portfolio during the quarter of $224.9 million and a negative fair market value adjustment in our available-for-sale portfolio of $134.8 million
Deposits at March 31, 2022 increased $85.2 million from year-end, and noninterest bearing deposits represented 33.64% of total deposits at March 31, 2022

Capital

Book value per share and tangible book value per share (non-GAAP)⁽¹⁾ decreased 3.5% and 6.4%, respectively, on a linked quarter basis, driven by a decrease in accumulated other comprehensive income
The Company redeemed $30 million of its subordinated notes on March 1, 2022
The Company has a $50 million stock repurchase program that will remain in effect through October 2022; however, there was no buyback activity during the first quarter of 2022

Credit Quality

The Company recorded a provision for credit losses on loans of $1.5 million and a negative provision for unfunded commitments (recorded in other noninterest expense) of $550 thousand for the first quarter of 2022
Allowance for credit losses on loans to total loans decreased on a linked quarter basis to 1.61% at March 31, 2022 as compared to 1.64% at December 31, 2021
The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 318.65% at March 31, 2022 as compared to 323.14% at December 31, 2021
Net loan charge-offs for the first quarter of 2022 were $851 thousand, or 0.03% of average loans on an annualized basis
Credit metrics remained relatively stable on a linked quarter basis with nonperforming loans to total loans remaining at 0.51% and criticized loans (which includes classified and special mention loans) to total loans decreasing to 2.47% at March 31, 2022

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

Income Statement

(Dollars in thousands, except per share data)	Three Months Ended
	Mar 31, 2022		Dec 31, 2021			Sep 30, 2021			Jun 30, 2021		Mar 31, 2021
Interest income
Loans held for investment	$	95,829	$	98,478		$	102,627		$	109,721	$	112,006
Loans held for sale		2,863		3,652			2,377			3,604		2,999
Securities		10,835		9,221			8,416			7,321		6,574
Other		664		568			593			345		183
Total interest income		110,191		111,919			114,013			120,991		121,762
Interest expense
Deposits		5,637		6,056			6,972			7,669		8,279
Borrowings		4,925		4,381			3,749			3,743		3,835
Total interest expense		10,562		10,437			10,721			11,412		12,114
Net interest income		99,629		101,482			103,292			109,579		109,648
Provision for (recovery of) credit losses
Provision for (recovery of) loan losses		1,500		(500	)		(1,200	)		—		—
Provision for credit losses on HTM securities		—		32			—			—		—
Total provision for (recovery of) credit losses		1,500		(468	)		(1,200	)		—		—
Net interest income after provision for (recovery of) credit losses		98,129		101,950			104,492			109,579		109,648
Noninterest income		37,458		47,582			50,755			47,610		81,037
Noninterest expense		94,105		101,115			103,999			108,777		115,935
Income before income taxes		41,482		48,417			51,248			48,412		74,750
Income taxes		7,935		11,363			11,185			7,545		16,842
Net income	$	33,547	$	37,054		$	40,063		$	40,867	$	57,908

Adjusted net income (non-GAAP)⁽¹⁾	$	33,728	$	38,232		$	40,315		$	41,169	$	48,244
Adjusted pre-provision net revenue ("PPNR") (non-GAAP)⁽¹⁾	$	42,664	$	49,190		$	50,171		$	48,797	$	62,266

Basic earnings per share	$	0.60	$	0.66		$	0.71		$	0.73	$	1.03
Diluted earnings per share		0.60		0.66			0.71			0.72		1.02
Adjusted diluted earnings per share (non-GAAP)⁽¹⁾		0.60		0.68			0.71			0.73		0.85
Average basic shares outstanding		55,809,192		55,751,487			56,146,285			56,325,717		56,240,201
Average diluted shares outstanding		56,081,863		56,105,050			56,447,184			56,635,898		56,519,199
Cash dividends per common share	$	0.22	$	0.22		$	0.22		$	0.22	$	0.22

Performance Ratios

	Three Months Ended
	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Return on average assets	0.81	%	0.89	%	0.99	%	1.04	%	1.54	%
Adjusted return on average assets (non-GAAP)⁽¹⁾	0.82		0.92		0.99		1.04		1.29
Return on average tangible assets (non-GAAP)⁽¹⁾	0.89		0.98		1.08		1.14		1.69
Adjusted return on average tangible assets (non-GAAP)⁽¹⁾	0.90		1.01		1.09		1.14		1.41
Return on average equity	6.05		6.59		7.16		7.40		10.81
Adjusted return on average equity (non-GAAP)⁽¹⁾	6.08		6.80		7.21		7.46		9.01
Return on average tangible equity (non-GAAP)⁽¹⁾	10.93		11.94		13.05		13.54		19.93
Adjusted return on average tangible equity (non-GAAP)⁽¹⁾	10.99		12.31		13.13		13.64		16.68
Efficiency ratio (fully taxable equivalent)	67.78		67.04		66.77		68.49		60.29
Adjusted efficiency ratio (non-GAAP)⁽¹⁾	67.02		64.18		66.06		67.28		63.85
Dividend payout ratio	36.67		33.33		30.99		30.14		21.36

Capital and Balance Sheet Ratios

	As of
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Shares outstanding		55,880,666			55,756,233			55,747,407			56,350,878			56,294,346
Market value per share	$	33.45		$	37.95		$	36.05		$	40.00		$	41.38
Book value per share		38.25			39.63			39.53			39.11			38.61
Tangible book value per share (non-GAAP)⁽¹⁾		20.91			22.35			22.22			21.95			21.41
Shareholders' equity to assets		12.68	%		13.15	%		13.64	%		13.75	%		13.91	%
Tangible common equity ratio (non-GAAP)⁽¹⁾		7.35			7.86			8.15			8.22			8.23
Leverage ratio		9.00			9.15			9.18			9.30			9.49
Common equity tier 1 capital ratio		10.78			11.18			11.02			11.14			11.05
Tier 1 risk-based capital ratio		11.67			12.10			11.94			12.07			12.00
Total risk-based capital ratio		15.50			16.14			14.66			15.11			15.09

Noninterest Income and Noninterest Expense

(Dollars in thousands)	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Noninterest income
Service charges on deposit accounts	$	9,562		$	9,751		$	9,337	$	9,458	$	8,023
Fees and commissions		3,982			3,885			3,837		4,110		3,900
Insurance commissions		2,554			2,353			2,829		2,422		2,237
Wealth management revenue		5,924			5,273			5,371		5,019		4,792
Mortgage banking income		9,633			14,726			23,292		20,853		50,733
Swap termination gains		—			4,676			—		—		—
Net gains on sales of securities		—			49			764		—		1,357
BOLI income		2,153			2,048			1,602		1,644		2,072
Other		3,650			4,821			3,723		4,104		7,923
Total noninterest income	$	37,458		$	47,582		$	50,755	$	47,610	$	81,037
Noninterest expense
Salaries and employee benefits	$	62,239		$	62,523		$	69,115	$	70,293	$	78,696
Data processing		4,263			5,346			5,277		5,652		5,451
Net occupancy and equipment		11,276			11,177			11,748		11,374		12,538
Other real estate owned		(241	)		(60	)		168		104		41
Professional fees		3,151			3,209			2,972		2,674		2,921
Advertising and public relations		4,059			2,929			2,922		3,100		3,252
Intangible amortization		1,366			1,424			1,481		1,539		1,598
Communications		2,027			2,088			2,198		2,291		2,292
Merger and conversion related expenses		687			—			—		—		—
Restructuring (benefit) charges		(455	)		61			—		15		292
Debt prepayment penalty		—			6,123			—		—		—
Other		5,733			6,295			8,118		11,735		8,854
Total noninterest expense	$	94,105		$	101,115		$	103,999	$	108,777	$	115,935

Mortgage Banking Income

(Dollars in thousands)	Three Months Ended
	Mar 31, 2022		Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Gain on sales of loans, net	$	6,047	$	10,801		$	20,116		$	17,581		$	33,901
Fees, net		3,053		4,320			3,420			4,519			4,902
Mortgage servicing income (loss), net		533		(395	)		(244	)		(1,247	)		(1,631	)
MSR valuation adjustment		—		—			—			—			13,561
Total mortgage banking income	$	9,633	$	14,726		$	23,292		$	20,853		$	50,733

Balance Sheet

(Dollars in thousands)	As of
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Assets
Cash and cash equivalents	$	1,607,493		$	1,877,965		$	1,476,141		$	1,605,488		$	1,261,916
Securities held to maturity, at amortized cost		487,194			416,357			—			—			—
Securities available for sale, at fair value		2,405,316			2,386,052			2,544,643			2,163,820			1,536,041
Loans held for sale, at fair value		280,464			453,533			452,869			448,959			502,002
Loans:
Non purchased		9,338,890			9,011,012			8,875,880			8,892,544			9,292,502
Purchased		974,569			1,009,902			1,140,944			1,256,698			1,395,906
Total loans		10,313,459			10,020,914			10,016,824			10,149,242			10,688,408
Allowance for credit losses on loans		(166,468	)		(164,171	)		(170,038	)		(172,354	)		(173,106	)
Loans, net		10,146,991			9,856,743			9,846,786			9,976,888			10,515,302
Premises and equipment, net		285,344			293,122			294,499			293,203			300,917
Other real estate owned		2,062			2,540			4,705			4,939			5,971
Goodwill		946,291			939,683			939,683			939,683			939,683
Other intangibles		22,731			24,098			25,522			27,003			28,542
Bank-owned life insurance		369,344			287,359			286,088			279,444			233,508
Mortgage servicing rights		91,730			89,018			86,387			84,912			80,263
Other assets		218,797			183,841			198,227			198,047			218,426
Total assets	$	16,863,757		$	16,810,311		$	16,155,550		$	16,022,386		$	15,622,571

Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest-bearing	$	4,706,256		$	4,718,124		$	4,492,650		$	4,349,135		$	4,135,360
Interest-bearing		9,284,641			9,187,600			8,762,179			8,766,216			8,601,548
Total deposits		13,990,897			13,905,724			13,254,829			13,115,351			12,736,908
Short-term borrowings		111,279			13,947			11,253			14,933			12,154
Long-term debt		435,416			471,209			468,863			469,406			467,660
Other liabilities		188,523			209,578			216,661			218,889			232,148
Total liabilities		14,726,115			14,600,458			13,951,606			13,818,579			13,448,870

Shareholders' equity:
Preferred stock		—			—			—			—			—
Common stock	$	296,483		$	296,483		$	296,483		$	296,483		$	296,483
Treasury stock		(114,050	)		(118,027	)		(118,288	)		(97,249	)		(98,949	)
Additional paid-in capital		1,297,088			1,300,192			1,298,022			1,295,879			1,294,911
Retained earnings		762,690			741,648			717,033			689,444			661,117
Accumulated other comprehensive income (loss)		(104,569	)		(10,443	)		10,694			19,250			20,139
Total shareholders' equity		2,137,642			2,209,853			2,203,944			2,203,807			2,173,701
Total liabilities and shareholders' equity	$	16,863,757		$	16,810,311		$	16,155,550		$	16,022,386		$	15,622,571

Net Interest Income and Net Interest Margin

(Dollars in thousands)	Three Months Ended
	March 31, 2022						December 31, 2021						March 31, 2021
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-earning assets:
Non purchased loans	$	9,085,482	$	84,653	3.77	%	$	8,806,254	$	85,362	3.85	%	$	8,362,793	$	81,928	3.97	%
Purchased loans		983,523		11,729	4.82	%		1,079,630		13,823	5.09	%		1,454,637		20,457	5.69	%
PPP loans		39,506		619	6.36	%		62,726		485	3.07	%		985,561		10,687	4.40	%
Total loans		10,108,511		97,001	3.88	%		9,948,610		99,670	3.98	%		10,802,991		113,072	4.24	%
Loans held for sale		330,442		2,863	3.48	%		498,724		3,652	2.93	%		406,397		2,999	2.96	%
Taxable securities		2,499,822		8,782	1.41	%		2,245,249		7,293	1.30	%		1,065,779		4,840	1.82	%
Tax-exempt securities⁽¹⁾		438,380		2,635	2.40	%		392,700		2,503	2.55	%		306,344		2,284	2.98	%
Total securities		2,938,202		11,417	1.55	%		2,637,949		9,796	1.49	%		1,372,123		7,124	2.08	%
Interest-bearing balances with banks		1,463,991		664	0.18	%		1,522,433		568	0.15	%		777,166		183	0.10	%
Total interest-earning assets		14,841,146		111,945	3.05	%		14,607,716		113,686	3.09	%		13,358,677		123,378	3.74	%
Cash and due from banks		206,224						201,941						205,830
Intangible assets		965,430						964,575						969,001
Other assets		684,464						676,408						670,183
Total assets	$	16,697,264					$	16,450,640					$	15,203,691
Interest-bearing liabilities:
Interest-bearing demand⁽²⁾	$	6,636,392	$	3,647	0.22	%	$	6,460,178	$	3,487	0.21	%	$	5,906,230	$	3,932	0.27	%
Savings deposits		1,097,560		139	0.05	%		1,045,784		151	0.06	%		882,758		169	0.08	%
Time deposits		1,374,722		1,851	0.55	%		1,434,162		2,418	0.67	%		1,655,778		4,178	1.02	%
Total interest-bearing deposits		9,108,674		5,637	0.25	%		8,940,124		6,056	0.27	%		8,444,766		8,279	0.40	%
Borrowed funds		485,777		4,925	4.08	%		434,546		4,381	4.03	%		483,907		3,835	3.19	%
Total interest-bearing liabilities		9,594,451		10,562	0.44	%		9,374,670		10,437	0.44	%		8,928,673		12,114	0.55	%
Noninterest-bearing deposits		4,651,793						4,633,885						3,862,422
Other liabilities		201,353						210,404						240,171
Shareholders' equity		2,249,667						2,231,681						2,172,425
Total liabilities and shareholders' equity	$	16,697,264					$	16,450,640					$	15,203,691
Net interest income/ net interest margin			$	101,383	2.76	%			$	103,249	2.81	%			$	111,264	3.37	%
Cost of funding					0.30	%					0.30	%					0.38	%
Cost of total deposits					0.17	%					0.18	%					0.27	%

⁽¹⁾ U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.

⁽²⁾ Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

Supplemental Margin Information

(Dollars in thousands)	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Mar 31, 2021
Earning asset mix:
Loans held for investment, excluding PPP loans		67.84	%		67.68	%		73.49	%
PPP loans		0.27			0.43			7.38
Loans held for sale		2.23			3.41			3.04
Securities		19.80			18.06			10.27
Interest-bearing balances with banks		9.86			10.42			5.82
Total		100.00	%		100.00	%		100.00	%

Funding sources mix:
Noninterest-bearing demand		32.65	%		33.08	%		30.20	%
Interest-bearing demand		46.59			46.11			46.18
Savings		7.70			7.47			6.90
Time deposits		9.65			10.24			12.94
Borrowed funds		3.41			3.10			3.78
Total		100.00	%		100.00	%		100.00	%

Net interest income collected on problem loans	$	434		$	578		$	2,180
Total accretion on purchased loans		1,235			2,187			3,088
Total impact on net interest income	$	1,669		$	2,765		$	5,268
Impact on net interest margin		0.05	%		0.08	%		0.16	%
Impact on loan yield		0.07	%		0.11	%		0.20	%

Interest income on PPP loans	$	619		$	485		$	10,687
PPP impact on net interest margin		0.01	%		—	%		0.07	%
PPP impact on loan yield		0.01	%		—	%		0.01	%

Loan Portfolio

(Dollars in thousands)	As of
	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Loan Portfolio:
Commercial, financial, agricultural	$	1,437,225	$	1,364,879	$	1,368,557	$	1,387,702	$	1,388,423
Lease financing		89,842		76,125		79,215		74,003		75,256
Real estate - construction		1,222,052		1,104,896		1,091,296		1,051,359		955,918
Real estate - 1-4 family mortgages		2,840,979		2,724,246		2,724,743		2,702,091		2,686,061
Real estate - commercial mortgages		4,577,864		4,549,037		4,535,730		4,530,169		4,549,027
Installment loans to individuals		137,115		143,340		149,821		156,987		172,859
Subtotal		10,305,077		9,962,523		9,949,362		9,902,311		9,827,544
PPP		8,382		58,391		67,462		246,931		860,864
Total loans	$	10,313,459	$	10,020,914	$	10,016,824	$	10,149,242	$	10,688,408

Credit Quality and Allowance for Credit Losses on Loans

(Dollars in thousands)	As of
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Nonperforming Assets:
Non purchased
Non purchased nonaccruing loans	$	32,573		$	30,751		$	29,266		$	27,101		$	24,794
Non purchased loans 90 days or more past due		209			1,074			908			800			2,235
Total non purchased nonperforming loans		32,782			31,825			30,174			27,901			27,029
Non purchased other real estate owned		531			951			2,252			1,675			2,292
Total non purchased nonperforming assets		33,313			32,776			32,426			29,576			29,321
Purchased
Purchased nonaccruing loans	$	19,422		$	18,613		$	26,492		$	27,690		$	28,947
Purchased loans 90 days or more past due		38			367			74			945			129
Total purchased nonperforming loans		19,460			18,980			26,566			28,635			29,076
Purchased other real estate owned		1,531			1,589			2,453			3,264			3,679
Total purchased nonperforming assets	$	20,991		$	20,569		$	29,019		$	31,899		$	32,755
Total nonperforming loans	$	52,242		$	50,805		$	56,740		$	56,536		$	56,105
Total nonperforming assets	$	54,304		$	53,345		$	61,445		$	61,475		$	62,076
Allowance for credit losses on loans	$	166,468		$	164,171		$	170,038		$	172,354		$	173,106
Net loan charge-offs	$	851		$	5,367		$	1,116		$	752		$	3,038
Annualized net loan charge-offs / average loans		0.03	%		0.21	%		0.04	%		0.03	%		0.11	%
Nonperforming loans / total loans		0.51			0.51			0.57			0.56			0.52
Nonperforming assets / total assets		0.32			0.32			0.38			0.38			0.40
Allowance for credit losses on loans / total loans		1.61			1.64			1.70			1.70			1.62
Allowance for credit losses on loans / nonperforming loans		318.65			323.14			299.68			304.86			308.54
Nonperforming loans / total loans excluding PPP loans (non-GAAP)⁽¹⁾		0.51			0.51			0.57			0.57			0.57
Nonperforming assets / total assets excluding PPP loans (non-GAAP)⁽¹⁾		0.32			0.32			0.38			0.39			0.42
Allowance for credit losses on loans / total loans excluding PPP loans (non-GAAP)⁽¹⁾		1.62			1.65			1.71			1.74			1.76

CONFERENCE CALL INFORMATION:

A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time (9:00 AM Central Time) on Wednesday, April 27, 2022.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or https://services.choruscall.com/mediaframe/webcast.html?webcastid=EvhJJJ96. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2022 First 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 www.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 7481861 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until May 11, 2022.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 118-year-old financial services institution. Renasant has assets of approximately $16.9 billion and operates 196 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," "focus," "possible," "may increase," "may fluctuate," "will likely result," and similar expressions, or future or conditional verbs such as "will," "should," "would" and "could," are generally forward-looking in nature and not historical facts. Forward-looking statements include information about the Company's future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. The Company's management believes these forward-looking statements are reasonable, but they are all inherently subject to significant business, economic and competitive risks and uncertainties, many of which are beyond the Company's control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements, and such differences may be material. Prospective investors are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and, accordingly, investors should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

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

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

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

NON-GAAP FINANCIAL MEASURES:

In addition to results presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), this press release and the presentation slides furnished to the SEC on the same Form 8-K as this release contain non-GAAP financial measures, including, without limitation, (i) core loan yield, (ii) core net interest income and margin, (iii) adjusted pre-provision net revenue, (iv) adjusted net income, (v) adjusted diluted earnings per share, (vi) tangible book value per share, (vii) tangible common equity ratio, (vii) certain asset quality ratios (namely, loans 30-89 past due to total loans, criticized loans to total loans, nonperforming loans to total loans, nonperforming assets to total assets, net charge-offs to average loans and the allowance for credit losses to total loans) in each case excluding PPP loans, (ix) certain performance ratios (namely, the ratio of adjusted pre-provision net revenue to average assets, the return on average assets and on average equity, and the return on average tangible assets and on average tangible common equity (including each on an as-adjusted basis)), and (x) the adjusted efficiency ratio. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and/or certain charges (such as, among others, merger and conversion expenses, COVID-19 related expenses, debt prepayment penalties, swap termination gains, restructuring 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 or, with respect to core loan yield and its asset quality measures, to exclude the Company's PPP loans. With respect to COVID-19 related expenses in particular, management added these expenses as a charge to exclude when calculating non-GAAP financial measures because the expenses included within this line item are readily quantifiable and possess the same characteristics with respect to management's inability to accurately predict the timing or amount thereof as the other charges excluded when calculating non-GAAP financial measures. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy; with respect to the core loan yield and certain asset quality measures, management excludes PPP loans, which bear an interest rate fixed by Small Business Administration ("SBA") regulations and are both forgivable and guaranteed by the SBA, to more clearly measure loan yields affected by competitive factors and potential loss in the Company's loan portfolio and the coverage therefor. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible, charges such as debt prepayment penalties, restructuring charges and COVID-19 related expenses, and the amount of PPP loans can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution's regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company's results to information provided in other regulatory reports and the results of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below under the caption "Non-GAAP Reconciliations".

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

Non-GAAP Reconciliations

(Dollars in thousands, except per share data)	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Adjusted Pre-Provision Net Revenue ("PPNR")
Net income (GAAP)	$	33,547		$	37,054		$	40,063		$	40,867		$	57,908
Income taxes		7,935			11,363			11,185			7,545			16,842
Provision for (recovery of) credit losses (including unfunded commitments)		950			(768	)		(1,400	)		—			—
Pre-provision net revenue (non-GAAP)	$	42,432		$	47,649		$	49,848		$	48,412		$	74,750
Merger and conversion expense		687			—			—			—			—
Debt prepayment penalties		—			6,123			—			—			—
Swap termination gains		—			(4,676	)		—			—			—
MSR valuation adjustment		—			—			—			—			(13,561	)
Restructuring (benefit) charges		(455	)		61			—			15			292
COVID-19 related expenses⁽¹⁾		—			33			323			370			785
Adjusted pre-provision net revenue (non-GAAP)	$	42,664		$	49,190		$	50,171		$	48,797		$	62,266

Adjusted Net Income and Adjusted Tangible Net Income
Net income (GAAP)	$	33,547		$	37,054		$	40,063		$	40,867		$	57,908
Amortization of intangibles		1,366			1,424			1,481			1,539			1,598
Tax effect of adjustments noted above⁽²⁾		(303	)		(335	)		(323	)		(333	)		(361	)
Tangible net income (non-GAAP)	$	34,610		$	38,143		$	41,221		$	42,073		$	59,145

Net income (GAAP)	$	33,547		$	37,054		$	40,063		$	40,867		$	57,908
Merger and conversion expense		687			—			—			—			—
Debt prepayment penalties		—			6,123			—			—			—
Swap termination gain		—			(4,676	)		—			—			—
MSR valuation adjustment		—			—			—			—			(13,561	)
Restructuring charges		(455	)		61			—			15			292
COVID-19 related expenses⁽¹⁾		—			33			323			370			785
Tax effect of adjustments noted above⁽²⁾		(51	)		(363	)		(71	)		(83	)		2,820
Adjusted net income (non-GAAP)	$	33,728		$	38,232		$	40,315		$	41,169		$	48,244
Amortization of intangibles		1,366			1,424			1,481			1,539			1,598
Tax effect of adjustments noted above⁽²⁾		(303	)		(335	)		(323	)		(333	)		(361	)
Adjusted tangible net income (non-GAAP)	$	34,791		$	39,321		$	41,473		$	42,375		$	49,481

Tangible Assets and Tangible Shareholders' Equity
Average shareholders' equity (GAAP)	$	2,249,667		$	2,231,681		$	2,219,431		$	2,213,743		$	2,172,425
Average intangible assets		965,430			964,575			965,960			967,430			969,001
Average tangible shareholders' equity (non-GAAP)	$	1,284,237		$	1,267,106		$	1,253,471		$	1,246,313		$	1,203,424

Average assets (GAAP)	$	16,697,264		$	16,450,640		$	16,130,149		$	15,831,018		$	15,203,691
Average intangible assets		965,430			964,575			965,960			967,430			969,001
Average tangible assets (non-GAAP)	$	15,731,834		$	15,486,065		$	15,164,189		$	14,863,588		$	14,234,690

Shareholders' equity (GAAP)	$	2,137,642		$	2,209,853		$	2,203,944		$	2,203,807		$	2,173,701
Intangible assets		969,022			963,781			965,205			966,686			968,225
Tangible shareholders' equity (non-GAAP)	$	1,168,620		$	1,246,072		$	1,238,739		$	1,237,121		$	1,205,476

Total assets (GAAP)	$	16,863,757		$	16,810,311		$	16,155,550		$	16,022,386		$	15,622,571
Intangible assets		969,022			963,781			965,205			966,686			968,225
Total tangible assets (non-GAAP)	$	15,894,735		$	15,846,530		$	15,190,345		$	15,055,700		$	14,654,346

Adjusted Performance Ratios
Return on average assets (GAAP)		0.81	%		0.89	%		0.99	%		1.04	%		1.54	%
Adjusted return on average assets (non-GAAP)		0.82	%		0.92	%		0.99	%		1.04	%		1.29	%
Return on average tangible assets (non-GAAP)		0.89	%		0.98	%		1.08	%		1.14	%		1.69	%
Adjusted pre-provision net revenue to average assets (non-GAAP)		1.04	%		1.19	%		1.23	%		1.24	%		1.66	%
Adjusted return on average tangible assets (non-GAAP)		0.90	%		1.01	%		1.09	%		1.14	%		1.41	%
Return on average equity (GAAP)		6.05	%		6.59	%		7.16	%		7.40	%		10.81	%
Adjusted return on average equity (non-GAAP)		6.08	%		6.80	%		7.21	%		7.46	%		9.01	%
Return on average tangible equity (non-GAAP)		10.93	%		11.94	%		13.05	%		13.54	%		19.93	%
Adjusted return on average tangible equity (non-GAAP)		10.99	%		12.31	%		13.13	%		13.64	%		16.68	%

Adjusted Diluted Earnings Per Share
Average diluted shares outstanding		56,081,863			56,105,050			56,447,184			56,635,898			56,519,199

Diluted earnings per share (GAAP)	$	0.60		$	0.66		$	0.71		$	0.72		$	1.02
Adjusted diluted earnings per share (non-GAAP)	$	0.60		$	0.68		$	0.71		$	0.73		$	0.85

Tangible Book Value Per Share
Shares outstanding		55,880,666			55,756,233			55,747,407			56,350,878			56,294,346

Book value per share (GAAP)	$	38.25		$	39.63		$	39.53		$	39.11		$	38.61
Tangible book value per share (non-GAAP)	$	20.91		$	22.35		$	22.22		$	21.95		$	21.41

Tangible Common Equity Ratio
Shareholders' equity to assets (GAAP)		12.68	%		13.15	%		13.64	%		13.75	%		13.91	%
Tangible common equity ratio (non-GAAP)		7.35	%		7.86	%		8.15	%		8.22	%		8.23	%

Adjusted Efficiency Ratio
Net interest income (FTE) (GAAP)		101,383			103,249			105,002			111,205			111,264

Total noninterest income (GAAP)		37,458			47,582			50,755			47,610			81,037
MSR valuation adjustment		—			—			—			—			13,561
Swap termination gains		—			4,676			—			—			—
Securities gains		—			49			764			—			1,357
Total adjusted noninterest income (non-GAAP)		37,458			42,857			49,991			47,610			66,119

Noninterest expense (GAAP)		94,105			101,115			103,999			108,777			115,935
Amortization of intangibles		1,366			1,424			1,481			1,539			1,598
Merger and conversion expense		687			—			—			—			—
Debt prepayment penalty		—			6,123			—			—			—
Restructuring (benefit) charges		(455	)		61			—			15			292
Recovery of unfunded commitments		(550	)		(300	)		(200	)		—			—
COVID-19 related expenses⁽¹⁾		—			33			323			370			785
Total adjusted noninterest expense (non-GAAP)		93,057			93,774			102,395			106,853			113,260

Efficiency ratio (GAAP)		67.78	%		67.04	%		66.77	%		68.49	%		60.29	%
Adjusted efficiency ratio (non-GAAP)		67.02	%		64.18	%		66.06	%		67.28	%		63.85	%

Core Net Interest Income and Core Net Interest Margin
Net interest income (FTE) (GAAP)	$	101,383		$	103,249		$	105,002		$	111,205		$	111,264
Net interest income collected on problem loans		434			577			316			1,339			2,180
Accretion recognized on purchased loans		1,235			2,187			2,871			2,638			3,088
Interest income recognized on PPP loans		619			485			3,503			10,120			10,687
Core net interest income (FTE) (non-GAAP)	$	99,095		$	99,999		$	98,312		$	97,108		$	95,309

Average earning assets (GAAP)	$	14,841,146		$	14,607,716		$	14,256,421		$	13,989,264		$	13,358,677
Average PPP loans		39,506			62,726			126,870			628,462			985,561
Average earning assets excluding PPP loans (non-GAAP)	$	14,801,640		$	14,544,990		$	14,129,551		$	13,360,802		$	12,373,116

Net interest margin (GAAP)		2.76	%		2.81	%		2.93	%		3.19	%		3.37	%
Core net interest margin (non-GAAP)		2.71	%		2.73	%		2.76	%		2.92	%		3.12	%

Core Loan Yield
Loan interest income (FTE) (GAAP)	$	97,001		$	99,670		$	103,769		$	110,785		$	113,072
Net interest income collected on problem loans		434			578			316			1,339			2,180
Accretion recognized on purchased loans		1,235			2,187			2,871			2,638			3,088
Interest income recognized on PPP loans		619			485			3,503			10,120			10,687
Core loan interest income (FTE) (non-GAAP)	$	94,713		$	96,420		$	97,079		$	96,688		$	97,117

Average loans (GAAP)	$	10,108,511		$	9,948,610		$	10,017,742		$	10,478,121		$	10,802,991
Average PPP loans		39,506			62,726			126,870			628,462			985,561
Average loans excluding PPP loans (non-GAAP)	$	10,069,005		$	9,885,884		$	9,890,872		$	9,849,659		$	9,817,430

Loan yield (GAAP)		3.88	%		3.98	%		4.11	%		4.24	%		4.24	%
Core loan yield (non-GAAP)		3.82	%		3.87	%		3.89	%		3.94	%		4.01	%

Adjusted Asset Quality Ratios
Total loans (GAAP)	$	10,313,459		$	10,020,914		$	10,016,824		$	10,149,242		$	10,688,408
PPP loans		8,382			58,391			67,462			246,931			860,864
Total loans excluding PPP loans (non-GAAP)	$	10,305,077		$	9,962,523		$	9,949,362		$	9,902,311		$	9,827,544

Loans 30-89 days past due	$	30,617		$	27,604		$	14,806		$	15,077		$	21,801
Loans 30-89 days past due / total loans (GAAP)		0.30	%		0.28	%		0.15	%		0.15	%		0.20	%
Loans 30-89 days past due / total loans excluding PPP loans (non-GAAP)		0.30	%		0.28	%		0.15	%		0.15	%		0.22	%

Classified loans	$	178,015		$	160,790		$	187,223		$	206,724		$	229,243
Special Mention loans		76,949			115,496			138,497			125,507			120,320
Criticized loans⁽³⁾	$	254,964		$	276,286		$	325,720		$	332,231		$	349,563
Criticized loans / total loans (GAAP)		2.47	%		2.76	%		3.25	%		3.27	%		3.27	%
Criticized loans / total loans excluding PPP loans (non-GAAP)		2.47	%		2.77	%		3.27	%		3.36	%		3.56	%

Nonperforming loans	$	52,242		$	50,805		$	56,740		$	56,536		$	56,105
Nonperforming loans / total loans (GAAP)		0.51	%		0.51	%		0.57	%		0.56	%		0.52	%
Nonperforming loans / total loans excluding PPP loans (non-GAAP)		0.51	%		0.51	%		0.57	%		0.57	%		0.57	%

Allowance for credit losses on loans	$	166,468		$	164,171		$	170,038		$	172,354		$	173,106
ACL / total loans (GAAP)		1.61	%		1.64	%		1.70	%		1.70	%		1.62	%
ACL / total loans excluding PPP loans (non-GAAP)		1.62	%		1.65	%		1.71	%		1.74	%		1.76	%


Average loans (GAAP)	$	10,108,511		$	9,948,610		$	10,017,742		$	10,478,121		$	10,802,991
Average PPP loans		39,506			62,726			126,870			628,462			985,561
Average loans excluding PPP loans (non-GAAP)	$	10,069,005		$	9,885,884		$	9,890,872		$	9,849,659		$	9,817,430

Net charge-offs	$	851		$	5,367		$	1,116		$	752		$	3,038
Annualized net charge-offs / average loans (GAAP)		0.03	%		0.21	%		0.04	%		0.03	%		0.11	%
Annualized net charge-offs / average loans excluding PPP loans (non-GAAP)		0.03	%		0.22	%		0.04	%		0.03	%		0.13	%

Total assets (GAAP)	$	16,863,757		$	16,810,311		$	16,155,550		$	16,022,386		$	15,622,571
PPP loans		8,382			58,391			67,462			246,931			860,864
Total assets excluding PPP loans (non-GAAP)	$	16,855,375		$	16,751,920		$	16,088,088		$	15,775,455		$	14,761,707

Nonperforming assets	$	54,304		$	53,345		$	61,445		$	61,475		$	62,076
Nonperforming assets / total assets (GAAP)		0.32	%		0.32	%		0.38	%		0.38	%		0.40	%
Nonperforming assets / total assets excluding PPP loans (non-GAAP)		0.32	%		0.32	%		0.38	%		0.39	%		0.42	%

⁽¹⁾ Primarily consists of employee overtime and employee benefit accruals directly related to the response to the COVID-19 pandemic and federal legislation enacted to address the pandemic, such as the CARES Act, and expenses associated with supplying branches with protective equipment and sanitation supplies (such as floor markings and cautionary signage for branches, face coverings and hand sanitizer) as well as more frequent and rigorous branch cleaning.

⁽²⁾ Tax effect is calculated based on the respective periods' effective tax rate excluding the impact of discrete items.

⁽³⁾ Criticized loans include loans in risk rating classifications of classified and special mention.

Contacts:	For Media:	For Financials:
	John S. Oxford	James C. Mabry IV
	Senior Vice President	Executive Vice President
	Director of Marketing	Chief Financial Officer
	(662) 680-1219	(662) 680-1281