TUPELO, Miss., July 23, 2024 (GLOBE NEWSWIRE) -- Renasant Corporation (NYSE:RNST) (the "Company") today announced earnings results for the second quarter of 2024.

(Dollars in thousands, except earnings per share)	Three Months Ended									Six Months Ended
	Jun 30, 2024		Mar 31, 2024			Jun 30, 2023				Jun 30, 2024		Jun 30, 2023
Net income and earnings per share:
Net income	$	38,846		$	39,409		$	28,643		$	78,255		$	74,721
After-tax loss on sale of securities		—			—			(18,085	)		—			(17,870	)
Basic EPS		0.69			0.70			0.51			1.39			1.33
Diluted EPS		0.69			0.70			0.51			1.38			1.33
Adjusted diluted EPS (Non-GAAP)⁽¹⁾		0.69			0.65			0.83			1.33			1.64
Impact to diluted EPS from after-tax loss on sale of securities (including impairments)		—			—			0.32			—			0.31

"The financial results for the quarter reflect good performance and improved balance sheet strength," remarked C. Mitchell Waycaster, Chief Executive Officer of the Company. "As we build capital, it enhances our ability to grow the company and build upon these results."

Quarterly Highlights

Earnings

Net income for the second quarter of 2024 was $38.8 million; diluted EPS and adjusted diluted EPS (non-GAAP)⁽¹⁾were each $0.69
Net interest income (fully tax equivalent) for the second quarter of 2024 was $127.6 million, up $1.7 million on a linked quarter basis
For the second quarter of 2024, net interest margin was 3.31%, up 1 basis point on a linked quarter basis
Cost of total deposits was 2.47% for the second quarter of 2024, up 12 basis points on a linked quarter basis
Noninterest income decreased $2.6 million on a linked quarter basis primarily due to a decrease in mortgage banking income. During the first quarter of 2024, the Company sold a portion of its mortgage servicing rights ("MSR"), recognizing a gain of $3.5 million with no such sale in the second quarter of 2024
Mortgage banking income decreased $1.7 million on a linked quarter basis. Excluding the gain recognized in the first quarter on the sale of a portion of Renasant's MSR, mortgage banking income increased $1.8 million on a linked quarter basis. The mortgage division generated $0.6 billion in interest rate lock volume in the second quarter of 2024, an increase of $0.2 billion on a linked quarter basis. Gain on sale margin was 1.69% for the second quarter of 2024, down 9 basis points on a linked quarter basis.
Noninterest expense decreased $0.9 million on a linked quarter basis. Excluding the effect of certain charitable contributions and FDIC special assessment expense incurred in the first quarter, noninterest expense increased approximately $0.8 million on a linked quarter basis. Seasonality in our mortgage division resulted in higher levels of expense driven from increased volumes. These expenses were slightly offset by savings in other areas

Balance Sheet

Loans increased $104.2 million on a linked quarter basis, representing 3.4% annualized net loan growth
Securities decreased $39.2 million on a linked quarter basis due to net cash outflows during the quarter of $43.1 million and a positive fair market value adjustment in our available-for-sale portfolio of $3.9 million
Deposits at June 30, 2024 increased $18.1 million on a linked quarter basis. Brokered deposits decreased $183.7 million on a linked quarter basis to $158.6 million at June 30, 2024. Noninterest bearing deposits increased $23.3 million on a linked quarter basis and represented 24.8% of total deposits at June 30, 2024

Capital and Liquidity

Book value per share and tangible book value per share (non-GAAP)⁽¹⁾ increased 1.3% and 2.4%, respectively, on a linked quarter basis
The Company has a $100 million stock repurchase program that is in effect through October 2024; there was no buyback activity during the second quarter of 2024

Credit Quality

The Company recorded a provision for credit losses of $3.3 million for the second quarter of 2024, compared to $2.4 million for the first quarter of 2024
The ratio of allowance for credit losses on loans to total loans was 1.59% at June 30, 2024 compared to 1.61% at March 31, 2024
The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 203.88% at June 30, 2024, compared to 270.87% at March 31, 2024
Net loan charge-offs for the second quarter of 2024 were $5.5 million, or 0.18% of average loans on an annualized basis
Nonperforming loans to total loans increased to 0.78% at June 30, 2024 compared to 0.59% at March 31, 2024, and criticized loans (which include classified and special mention loans) to total loans decreased to 2.62% at June 30, 2024, compared to 2.76% at March 31, 2024

Sale of Renasant Insurance

Effective July 1, 2024, Renasant sold the assets of its insurance agency for cash proceeds to Renasant Bank of $56.4 million, recognizing an estimated after-tax impact to earnings of $36.4 million, which is net of estimated merger-related expenses. The financial effects of the sale will be reflected in the third quarter of 2024

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

Income Statement

(Dollars in thousands, except per share data)	Three Months Ended														Six Months Ended
	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023		Sep 30, 2023			Jun 30, 2023			Jun 30, 2024			Jun 30, 2023
Interest income
Loans held for investment	$	198,397		$	192,390		$	188,535	$	181,129		$	173,198		$	390,787		$	334,985
Loans held for sale		3,530			2,308			3,329		3,751			2,990			5,838			4,727
Securities		10,410			10,700			10,728		10,669			14,000			21,110			29,091
Other		7,874			7,781			7,839		10,128			6,978			15,655			12,408
Total interest income		220,211			213,179			210,431		205,677			197,166			433,390			381,211
Interest expense
Deposits		87,621			82,613			77,168		70,906			51,391			170,234			84,257
Borrowings		7,564			7,276			7,310		7,388			15,559			14,840			30,963
Total interest expense		95,185			89,889			84,478		78,294			66,950			185,074			115,220
Net interest income		125,026			123,290			125,953		127,383			130,216			248,316			265,991
Provision for credit losses
Provision for loan losses		4,300			2,638			2,518		5,315			3,000			6,938			10,960
Recovery of unfunded commitments		(1,000	)		(200	)		—		(700	)		(1,000	)		(1,200	)		(2,500	)
Total provision for credit losses		3,300			2,438			2,518		4,615			2,000			5,738			8,460
Net interest income after provision for credit losses		121,726			120,852			123,435		122,768			128,216			242,578			257,531
Noninterest income		38,762			41,381			20,356		38,200			17,226			80,143			54,519
Noninterest expense		111,976			112,912			111,880		108,369			110,165			224,888			219,373
Income before income taxes		48,512			49,321			31,911		52,599			35,277			97,833			92,677
Income taxes		9,666			9,912			3,787		10,766			6,634			19,578			17,956
Net income	$	38,846		$	39,409		$	28,124	$	41,833		$	28,643		$	78,255		$	74,721

Adjusted net income (non-GAAP)⁽¹⁾	$	38,846		$	36,572		$	42,887	$	41,833		$	46,728		$	75,421		$	92,591
Adjusted pre-provision net revenue ("PPNR") (non-GAAP)⁽¹⁾	$	51,812		$	48,231		$	52,614	$	57,214		$	59,715		$	100,043		$	123,575

Basic earnings per share	$	0.69		$	0.70		$	0.50	$	0.75		$	0.51		$	1.39		$	1.33
Diluted earnings per share		0.69			0.70			0.50		0.74			0.51			1.38			1.33
Adjusted diluted earnings per share (non-GAAP)⁽¹⁾		0.69			0.65			0.76		0.74			0.83			1.33			1.64
Average basic shares outstanding		56,342,909			56,208,348			56,141,628		56,138,618			56,107,881			56,275,628			56,058,585
Average diluted shares outstanding		56,684,626			56,531,078			56,611,217		56,523,887			56,395,653			56,607,947			56,330,295
Cash dividends per common share	$	0.22		$	0.22		$	0.22	$	0.22		$	0.22		$	0.44		$	0.44

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

Performance Ratios

	Three Months Ended										Six Months Ended
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Jun 30, 2024		Jun 30, 2023
Return on average assets	0.90	%	0.92	%	0.65	%	0.96	%	0.66	%	0.91	%	0.87	%
Adjusted return on average assets (non-GAAP)⁽¹⁾	0.90		0.86		0.99		0.96		1.08		0.88		1.08
Return on average tangible assets (non-GAAP)⁽¹⁾	0.98		1.00		0.71		1.05		0.73		0.99		0.96
Adjusted return on average tangible assets (non-GAAP)⁽¹⁾	0.98		0.93		1.08		1.05		1.18		0.96		1.18
Return on average equity	6.68		6.85		4.93		7.44		5.18		6.77		6.84
Adjusted return on average equity (non-GAAP)⁽¹⁾	6.68		6.36		7.53		7.44		8.45		6.52		8.48
Return on average tangible equity (non-GAAP)⁽¹⁾	12.04		12.45		9.26		13.95		9.91		12.25		13.04
Adjusted return on average tangible equity (non-GAAP)⁽¹⁾	12.04		11.58		13.94		13.95		15.94		11.81		16.07
Efficiency ratio (fully taxable equivalent)	67.31		67.52		75.11		64.38		73.29		67.41		67.26
Adjusted efficiency ratio (non-GAAP)⁽¹⁾	66.60		68.23		66.18		63.60		62.98		67.41		62.13
Dividend payout ratio	31.88		31.43		44.00		29.33		43.14		31.65		33.08

Capital and Balance Sheet Ratios

	As of
	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023
Shares outstanding		56,367,924			56,304,860			56,142,207			56,140,713			56,132,478
Market value per share	$	30.54		$	31.32		$	33.68		$	26.19		$	26.13
Book value per share		41.77			41.25			40.92			39.78			39.35
Tangible book value per share (non-GAAP)⁽¹⁾		23.89			23.32			22.92			21.76			21.30
Shareholders' equity to assets		13.45	%		13.39	%		13.23	%		13.00	%		12.82	%
Tangible common equity ratio (non-GAAP)⁽¹⁾		8.16			8.04			7.87			7.55			7.37
Leverage ratio		9.81			9.75			9.62			9.48			9.22
Common equity tier 1 capital ratio		10.75			10.59			10.52			10.46			10.30
Tier 1 risk-based capital ratio		11.53			11.37			11.30			11.25			11.09
Total risk-based capital ratio		15.15			15.00			14.93			14.91			14.76

Noninterest Income and Noninterest Expense

(Dollars in thousands)	Three Months Ended													Six Months Ended
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Jun 30, 2024		Jun 30, 2023
Noninterest income
Service charges on deposit accounts	$	10,286	$	10,506	$	10,603		$	9,743		$	9,733		$	20,792	$	18,853
Fees and commissions		3,944		3,949		4,130			4,108			4,987			7,893		9,663
Insurance commissions		2,758		2,716		2,583			3,264			2,809			5,474		5,255
Wealth management revenue		5,684		5,669		5,668			5,986			5,338			11,353		10,478
Mortgage banking income		9,698		11,370		6,592			7,533			9,771			21,068		18,288
Net losses on sales of securities (including impairments)		—		—		(19,352	)		—			(22,438	)		—		(22,438	)
Gain on extinguishment of debt		—		56		620			—			—			56		—
BOLI income		2,701		2,691		2,589			2,469			2,402			5,392		5,405
Other		3,691		4,424		6,923			5,097			4,624			8,115		9,015
Total noninterest income	$	38,762	$	41,381	$	20,356		$	38,200		$	17,226		$	80,143	$	54,519
Noninterest expense
Salaries and employee benefits	$	70,731	$	71,470	$	71,841		$	69,458		$	70,637		$	142,201	$	140,469
Data processing		3,945		3,807		3,971			3,907			3,684			7,752		7,317
Net occupancy and equipment		11,844		11,389		11,653			11,548			11,865			23,233		23,270
Other real estate owned		105		107		306			(120	)		51			212		81
Professional fees		3,195		3,348		2,854			3,338			4,012			6,543		7,479
Advertising and public relations		3,807		4,886		3,084			3,474			3,482			8,693		8,168
Intangible amortization		1,186		1,212		1,274			1,311			1,369			2,398		2,795
Communications		2,112		2,024		2,026			2,006			2,226			4,136		4,206
Other		15,051		14,669		14,871			13,447			12,839			29,720		25,588
Total noninterest expense	$	111,976	$	112,912	$	111,880		$	108,369		$	110,165		$	224,888	$	219,373

Mortgage Banking Income

(Dollars in thousands)	Three Months Ended										Six Months Ended
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Jun 30, 2024		Jun 30, 2023
Gain on sales of loans, net	$	5,199	$	4,535	$	1,860	$	3,297	$	4,646	$	9,734	$	9,416
Fees, net		2,866		1,854		2,010		2,376		2,859		4,720		4,665
Mortgage servicing income, net		1,633		4,981		2,722		1,860		2,266		6,614		4,207
Total mortgage banking income	$	9,698	$	11,370	$	6,592	$	7,533	$	9,771	$	21,068	$	18,288

Balance Sheet

(Dollars in thousands)	As of
	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023
Assets
Cash and cash equivalents	$	851,906		$	844,400		$	801,351		$	741,156		$	946,899
Securities held to maturity, at amortized cost		1,174,663			1,199,111			1,221,464			1,245,595			1,273,044
Securities available for sale, at fair value		749,685			764,486			923,279			909,108			950,930
Loans held for sale, at fair value		266,406			191,440			179,756			241,613			249,615
Loans held for investment		12,604,755			12,500,525			12,351,230			12,168,023			11,930,516
Allowance for credit losses on loans		(199,871	)		(201,052	)		(198,578	)		(197,773	)		(194,391	)
Loans, net		12,404,884			12,299,473			12,152,652			11,970,250			11,736,125
Premises and equipment, net		280,966			282,193			283,195			284,368			285,952
Other real estate owned		7,366			9,142			9,622			9,258			5,120
Goodwill and other intangibles		1,008,062			1,009,248			1,010,460			1,011,735			1,013,046
Bank-owned life insurance		387,791			385,186			382,584			379,945			377,649
Mortgage servicing rights		72,092			71,596			91,688			90,241			87,432
Other assets		306,570			289,466			304,484			298,352			298,530
Total assets	$	17,510,391		$	17,345,741		$	17,360,535		$	17,181,621		$	17,224,342

Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest-bearing	$	3,539,453		$	3,516,164		$	3,583,675		$	3,734,197		$	3,878,953
Interest-bearing		10,715,760			10,720,999			10,493,110			10,422,913			10,216,408
Total deposits		14,255,213			14,237,163			14,076,785			14,157,110			14,095,361
Short-term borrowings		232,741			108,121			307,577			107,662			257,305
Long-term debt		428,677			428,047			429,400			427,399			429,630
Other liabilities		239,059			250,060			249,390			256,127			233,418
Total liabilities		15,155,690			15,023,391			15,063,152			14,948,298			15,015,714

Shareholders' equity:
Common stock		296,483			296,483			296,483			296,483			296,483
Treasury stock		(97,534	)		(99,683	)		(105,249	)		(105,300	)		(105,589	)
Additional paid-in capital		1,304,782			1,303,613			1,308,281			1,304,891			1,301,883
Retained earnings		1,005,086			978,880			952,124			936,573			907,312
Accumulated other comprehensive loss		(154,116	)		(156,943	)		(154,256	)		(199,324	)		(191,461	)
Total shareholders' equity		2,354,701			2,322,350			2,297,383			2,233,323			2,208,628
Total liabilities and shareholders' equity	$	17,510,391		$	17,345,741		$	17,360,535		$	17,181,621		$	17,224,342

Net Interest Income and Net Interest Margin

(Dollars in thousands)	Three Months Ended
	June 30, 2024						March 31, 2024						June 30, 2023
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-earning assets:
Loans held for investment	$	12,575,651	$	200,670	6.41	%	$	12,407,976	$	194,640	6.30	%	$	11,877,592	$	175,549	5.93	%
Loans held for sale		219,826		3,530	6.42	%		155,382		2,308	5.94	%		192,539		2,990	6.21	%
Taxable securities		1,832,002		9,258	2.02	%		1,891,817		9,505	2.01	%		2,481,712		12,353	1.99	%
Tax-exempt securities⁽¹⁾		263,937		1,451	2.20	%		270,279		1,505	2.23	%		367,410		2,165	2.36	%
Total securities		2,095,939		10,709	2.04	%		2,162,096		11,010	2.04	%		2,849,122		14,518	2.04	%
Interest-bearing balances with banks		595,030		7,874	5.32	%		570,336		7,781	5.49	%		524,307		6,978	5.34	%
Total interest-earning assets		15,486,446		222,783	5.77	%		15,295,790		215,739	5.66	%		15,443,560		200,035	5.19	%
Cash and due from banks		187,519						188,503						189,668
Intangible assets		1,008,638						1,009,825						1,013,811
Other assets		688,766						708,895						690,885
Total assets	$	17,371,369					$	17,203,013					$	17,337,924
Interest-bearing liabilities:
Interest-bearing demand⁽²⁾	$	7,094,411	$	56,132	3.17	%	$	6,955,989	$	52,500	3.03	%	$	6,114,067	$	29,185	1.91	%
Savings deposits		839,638		729	0.35	%		860,397		730	0.34	%		1,004,096		813	0.32	%
Brokered deposits		294,650		3,944	5.37	%		445,608		5,987	5.39	%		809,613		10,295	5.10	%
Time deposits		2,487,873		26,816	4.34	%		2,319,420		23,396	4.06	%		1,735,567		11,098	2.57	%
Total interest-bearing deposits		10,716,572		87,621	3.28	%		10,581,414		82,613	3.13	%		9,663,343		51,391	2.13	%
Borrowed funds		564,672		7,564	5.37	%		544,564		7,276	5.35	%		1,204,968		15,559	5.18	%
Total interest-bearing liabilities		11,281,244		95,185	3.39	%		11,125,978		89,889	3.24	%		10,868,311		66,950	2.47	%
Noninterest-bearing deposits		3,509,109						3,518,612						4,039,087
Other liabilities		243,285						244,142						212,818
Shareholders' equity		2,337,731						2,314,281						2,217,708
Total liabilities and shareholders' equity	$	17,371,369					$	17,203,013					$	17,337,924
Net interest income/ net interest margin			$	127,598	3.31	%			$	125,850	3.30	%			$	133,085	3.45	%
Cost of funding					2.58	%					2.46	%					1.80	%
Cost of total deposits					2.47	%					2.35	%					1.50	%

_{⁽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.}

Net Interest Income and Net Interest Margin, continued

(Dollars in thousands)	Six Months Ended
	June 30, 2024						June 30, 2023
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-earning assets:
Loans held for investment	$	12,491,814	$	395,310	6.35	%	$	11,783,585	$	339,519	5.81	%
Loans held for sale		187,604		5,838	6.22	%		148,221		4,727	6.38	%
Taxable securities⁽¹⁾		1,861,909		18,763	2.02	%		2,557,997		25,670	2.01	%
Tax-exempt securities		267,108		2,956	2.21	%		382,130		4,510	2.36	%
Total securities		2,129,017		21,719	2.04	%		2,940,127		30,180	2.05	%
Interest-bearing balances with banks		582,683		15,655	5.40	%		494,434		12,408	5.06	%
Total interest-earning assets		15,391,118		438,522	5.72	%		15,366,367		386,834	5.07	%
Cash and due from banks		188,011						193,703
Intangible assets		1,009,232						1,012,690
Other assets		701,770						675,648
Total assets	$	17,290,131					$	17,248,408
Interest-bearing liabilities:
Interest-bearing demand⁽²⁾	$	7,025,200	$	108,632	3.10	%	$	6,090,549	$	49,483	1.64	%
Savings deposits		850,018		1,459	0.34	%		1,028,315		1,639	0.32	%
Brokered deposits		370,129		9,931	5.38	%		603,822		14,713	4.91	%
Time deposits		2,403,646		50,212	4.20	%		1,650,683		18,422	2.25	%
Total interest-bearing deposits		10,648,993		170,234	3.21	%		9,373,369		84,257	1.81	%
Borrowed funds		554,618		14,840	5.36	%		1,243,049		30,963	5.01	%
Total interest-bearing liabilities		11,203,611		185,074	3.32	%		10,616,418		115,220	2.19	%
Noninterest-bearing deposits		3,513,860						4,212,081
Other liabilities		246,654						217,573
Shareholders' equity		2,326,006						2,202,336
Total liabilities and shareholders' equity	$	17,290,131					$	17,248,408
Net interest income/ net interest margin			$	253,448	3.30	%			$	271,614	3.56	%
Cost of funding					2.52	%					1.57	%
Cost of total deposits					2.41	%					1.25	%

Supplemental Margin Information

(Dollars in thousands)	Three Months Ended									Six Months Ended
	Jun 30, 2024			Mar 31, 2024			Jun 30, 2023			Jun 30, 2024			Jun 30, 2023
Earning asset mix:
Loans held for investment		81.20	%		81.12	%		76.91	%		81.16	%		76.68	%
Loans held for sale		1.42			1.02			1.25			1.22			0.96
Securities		13.53			14.14			18.45			13.83			19.13
Interest-bearing balances with banks		3.85			3.72			3.39			3.79			3.23
Total		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

Funding sources mix:
Noninterest-bearing demand		23.73	%		24.03	%		27.09	%		23.88	%		28.41	%
Interest-bearing demand		47.97			47.50			41.01			47.73			41.07
Savings		5.68			5.88			6.74			5.78			6.93
Brokered deposits		1.99			3.04			5.43			2.51			4.07
Time deposits		16.82			15.84			11.64			16.33			11.13
Borrowed funds		3.81			3.71			8.09			3.77			8.39
Total		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

Net interest income collected on problem loans	$	(146	)	$	123		$	364		$	(23	)	$	756
Total accretion on purchased loans		897			800			874			1,697			1,759
Total impact on net interest income	$	751		$	923		$	1,238		$	1,674		$	2,515
Impact on net interest margin		0.02	%		0.02	%		0.03	%		0.02	%		0.03	%
Impact on loan yield		0.02			0.03			0.04			0.03	%		0.04	%

Loan Portfolio

(Dollars in thousands)	As of
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
Loan Portfolio:
Commercial, financial, agricultural	$	1,847,762	$	1,869,408	$	1,871,821	$	1,819,891	$	1,729,070
Lease financing		102,996		107,474		116,020		120,724		122,370
Real estate - construction		1,355,425		1,243,535		1,333,397		1,407,364		1,369,019
Real estate - 1-4 family mortgages		3,435,818		3,429,286		3,439,919		3,398,876		3,348,654
Real estate - commercial mortgages		5,766,478		5,753,230		5,486,550		5,313,166		5,252,479
Installment loans to individuals		96,276		97,592		103,523		108,002		108,924
Total loans	$	12,604,755	$	12,500,525	$	12,351,230	$	12,168,023	$	11,930,516

Credit Quality and Allowance for Credit Losses on Loans

(Dollars in thousands)	As of
	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023
Nonperforming Assets:
Nonaccruing loans	$	97,795		$	73,774		$	68,816		$	69,541		$	55,439
Loans 90 days or more past due		240			451			554			532			36,321
Total nonperforming loans		98,035			74,225			69,370			70,073			91,760
Other real estate owned		7,366			9,142			9,622			9,258			5,120
Total nonperforming assets	$	105,401		$	83,367		$	78,992		$	79,331		$	96,880

Criticized Loans
Classified loans	$	191,595		$	206,502		$	166,893		$	186,052		$	219,674
Special Mention loans		138,343			138,366			99,699			89,858			56,616
Criticized loans⁽¹⁾	$	329,938		$	344,868		$	266,592		$	275,910		$	276,290

Allowance for credit losses on loans	$	199,871		$	201,052		$	198,578		$	197,773		$	194,391
Net loan charge-offs	$	5,481		$	164		$	1,713		$	1,933		$	3,901
Annualized net loan charge-offs / average loans		0.18	%		0.01	%		0.06	%		0.06	%		0.13	%
Nonperforming loans / total loans		0.78			0.59			0.56			0.58			0.77
Nonperforming assets / total assets		0.60			0.48			0.46			0.46			0.56
Allowance for credit losses on loans / total loans		1.59			1.61			1.61			1.63			1.63
Allowance for credit losses on loans / nonperforming loans		203.88			270.87			286.26			282.24			211.85
Criticized loans / total loans		2.62			2.76			2.16			2.27			2.32

_{⁽¹⁾ Criticized loans include loans in risk rating classifications of classified and special mention.}

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, July 24, 2024.

The webcast is accessible through Renasant's investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=4YF7gjk4. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2024 Second Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.

The webcast will be archived on www.renasant.com after the call and will remain accessible for one year. A replay can be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 8556122 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 7, 2024.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 120-year-old financial services institution. Renasant has assets of approximately $17.5 billion and operates 185 banking, lending, mortgage and wealth management offices throughout the Southeast as well as offering factoring and asset-based lending on a nationwide basis.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

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

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

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

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

NON-GAAP FINANCIAL MEASURES:

In addition to results presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), this press release and the presentation slides furnished to the SEC on the same Form 8-K as this release contain non-GAAP financial measures, namely, (i) adjusted loan yield, (ii) adjusted net interest income and margin, (iii) pre-provision net revenue (including on an as-adjusted basis), (iv) adjusted net income, (v) adjusted diluted earnings per share, (vi) tangible book value per share, (vii) the tangible common equity ratio, (viii) certain performance ratios (namely, the ratio of pre-provision net revenue to average assets, the return on average assets and on average equity, and the return on average tangible assets and on average tangible common equity (including each of the foregoing on an as-adjusted basis)), and (ix) the adjusted efficiency ratio.

These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets, including related amortization, and/or certain gains or charges (although, for the second quarter of 2024, there were no excluded gains or charges), with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution's regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company's results to information provided in other regulatory reports and the results of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below under the caption "Non-GAAP Reconciliations".

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

Non-GAAP Reconciliations

(Dollars in thousands, except per share data)	Three Months Ended															Six Months Ended
	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Jun 30, 2024			Jun 30, 2023
Adjusted Pre-Provision Net Revenue ("PPNR")
Net income (GAAP)	$	38,846		$	39,409		$	28,124		$	41,833		$	28,643		$	78,255		$	74,721
Income taxes		9,666			9,912			3,787			10,766			6,634			19,578			17,956
Provision for credit losses (including unfunded commitments)		3,300			2,438			2,518			4,615			2,000			5,738			8,460
Pre-provision net revenue (non-GAAP)	$	51,812		$	51,759		$	34,429		$	57,214		$	37,277		$	103,571		$	101,137
Gain on extinguishment of debt		—			(56	)		(620	)		—			—			(56	)		—
Gain on sales of MSR		—			(3,472	)		(547	)		—			—			(3,472	)		—
Losses on sales of securities (including impairments)		—			—			19,352			—			22,438			—			22,438
Adjusted pre-provision net revenue (non-GAAP)	$	51,812		$	48,231		$	52,614		$	57,214		$	59,715		$	100,043		$	123,575

Adjusted Net Income and Adjusted Tangible Net Income
Net income (GAAP)	$	38,846		$	39,409		$	28,124		$	41,833		$	28,643		$	78,255		$	74,721
Amortization of intangibles		1,186			1,212			1,274			1,311			1,369			2,398			2,795
Tax effect of adjustments noted above⁽¹⁾		(233	)		(237	)		(240	)		(269	)		(266	)		(472	)		(569	)
Tangible net income (non-GAAP)	$	39,799		$	40,384		$	29,158		$	42,875		$	29,746		$	80,181		$	76,947

Net income (GAAP)	$	38,846		$	39,409		$	28,124		$	41,833		$	28,643		$	78,255		$	74,721
Gain on extinguishment of debt		—			(56	)		(620	)		—			—			(56	)		—
Gain on sales of MSR		—			(3,472	)		(547	)		—			—			(3,472	)		—
Losses on sales of securities (including impairments)		—			—			19,352			—			22,438			—			22,438
Tax effect of adjustments noted above⁽¹⁾		—			691			(3,422	)		—			(4,353	)		694			(4,568	)
Adjusted net income (non-GAAP)	$	38,846		$	36,572		$	42,887		$	41,833		$	46,728		$	75,421		$	92,591
Amortization of intangibles		1,186			1,212			1,274			1,311			1,369			2,398			2,795
Tax effect of adjustments noted above⁽¹⁾		(233	)		(237	)		(240	)		(269	)		(266	)		(472	)		(569	)
Adjusted tangible net income (non-GAAP)	$	39,799		$	37,547		$	43,921		$	42,875		$	47,831		$	77,347		$	94,817
Tangible Assets and Tangible Shareholders' Equity
Average shareholders' equity (GAAP)	$	2,337,731		$	2,314,281		$	2,261,025		$	2,231,605		$	2,217,708		$	2,326,006		$	2,202,336
Average intangible assets		1,008,638			1,009,825			1,011,130			1,012,460			1,013,811			1,009,232			1,012,690
Average tangible shareholders' equity (non-GAAP)	$	1,329,093		$	1,304,456		$	1,249,895		$	1,219,145		$	1,203,897		$	1,316,774		$	1,189,646

Average assets (GAAP)	$	17,371,369		$	17,203,013		$	17,195,840		$	17,235,413		$	17,337,924		$	17,290,131		$	17,248,408
Average intangible assets		1,008,638			1,009,825			1,011,130			1,012,460			1,013,811			1,009,232			1,012,690
Average tangible assets (non-GAAP)	$	16,362,731		$	16,193,188		$	16,184,710		$	16,222,953		$	16,324,113		$	16,280,899		$	16,235,718

Shareholders' equity (GAAP)	$	2,354,701		$	2,322,350		$	2,297,383		$	2,233,323		$	2,208,628		$	2,354,701		$	2,208,628
Intangible assets		1,008,062			1,009,248			1,010,460			1,011,735			1,013,046			1,008,062			1,013,046
Tangible shareholders' equity (non-GAAP)	$	1,346,639		$	1,313,102		$	1,286,923		$	1,221,588		$	1,195,582		$	1,346,639		$	1,195,582

Total assets (GAAP)	$	17,510,391		$	17,345,741		$	17,360,535		$	17,181,621		$	17,224,342		$	17,510,391		$	17,224,342
Intangible assets		1,008,062			1,009,248			1,010,460			1,011,735			1,013,046			1,008,062			1,013,046
Total tangible assets (non-GAAP)	$	16,502,329		$	16,336,493		$	16,350,075		$	16,169,886		$	16,211,296		$	16,502,329		$	16,211,296

Adjusted Performance Ratios
Return on average assets (GAAP)		0.90	%		0.92	%		0.65	%		0.96	%		0.66	%		0.91	%		0.87	%
Adjusted return on average assets (non-GAAP)		0.90			0.86			0.99			0.96			1.08			0.88			1.08
Return on average tangible assets (non-GAAP)		0.98			1.00			0.71			1.05			0.73			0.99			0.96
Pre-provision net revenue to average assets (non-GAAP)		1.20			1.21			0.79			1.32			0.86			1.20			1.18
Adjusted pre-provision net revenue to average assets (non-GAAP)		1.20			1.13			1.21			1.32			1.38			1.16			1.44
Adjusted return on average tangible assets (non-GAAP)		0.98			0.93			1.08			1.05			1.18			0.96			1.18
Return on average equity (GAAP)		6.68			6.85			4.93			7.44			5.18			6.77			6.84
Adjusted return on average equity (non-GAAP)		6.68			6.36			7.53			7.44			8.45			6.52			8.48
Return on average tangible equity (non-GAAP)		12.04			12.45			9.26			13.95			9.91			12.25			13.04
Adjusted return on average tangible equity (non-GAAP)		12.04			11.58			13.94			13.95			15.94			11.81			16.07

Adjusted Diluted Earnings Per Share
Average diluted shares outstanding		56,684,626			56,531,078			56,611,217			56,523,887			56,395,653			56,607,947			56,330,295

Diluted earnings per share (GAAP)	$	0.69		$	0.70		$	0.50		$	0.74		$	0.51		$	1.38		$	1.33
Adjusted diluted earnings per share (non-GAAP)	$	0.69		$	0.65		$	0.76		$	0.74		$	0.83		$	1.33		$	1.64

Tangible Book Value Per Share
Shares outstanding		56,367,924			56,304,860			56,142,207			56,140,713			56,132,478			56,367,924			56,132,478

Book value per share (GAAP)	$	41.77		$	41.25		$	40.92		$	39.78		$	39.35		$	41.77		$	39.35
Tangible book value per share (non-GAAP)	$	23.89		$	23.32		$	22.92		$	21.76		$	21.30		$	23.89		$	21.30

Tangible Common Equity Ratio
Shareholders' equity to assets (GAAP)		13.45	%		13.39	%		13.23	%		13.00	%		12.82	%		13.45	%		12.82	%
Tangible common equity ratio (non-GAAP)		8.16	%		8.04	%		7.87	%		7.55	%		7.37	%		8.16	%		7.37	%
Adjusted Efficiency Ratio
Net interest income (FTE) (GAAP)	$	127,598		$	125,850		$	128,595		$	130,131		$	133,085		$	253,448		$	271,614

Total noninterest income (GAAP)	$	38,762		$	41,381		$	20,356		$	38,200		$	17,226		$	80,143		$	54,519
Gain on sales of MSR		—			3,472			547			—			—			3,472			—
Gain on extinguishment of debt		—			56			620			—			—			56			—
Losses on sales of securities (including impairments)		—			—			(19,352	)		—			(22,438	)		—			(22,438	)
Total adjusted noninterest income (non-GAAP)	$	38,762		$	37,853		$	38,541		$	38,200		$	39,664		$	76,615		$	76,957

Noninterest expense (GAAP)	$	111,976		$	112,912		$	111,880		$	108,369		$	110,165		$	224,888		$	219,373
Amortization of intangibles		1,186			1,212			1,274			1,311			1,369			2,398			2,795
Total adjusted noninterest expense (non-GAAP)	$	110,790		$	111,700		$	110,606		$	107,058		$	108,796		$	222,490		$	216,578

Efficiency ratio (GAAP)		67.31	%		67.52	%		75.11	%		64.38	%		73.29	%		67.41	%		67.26	%
Adjusted efficiency ratio (non-GAAP)		66.60	%		68.23	%		66.18	%		63.60	%		62.98	%		67.41	%		62.13	%

Adjusted Net Interest Income and Adjusted Net Interest Margin
Net interest income (FTE) (GAAP)	$	127,598		$	125,850		$	128,595		$	130,131		$	133,085		$	253,448		$	271,614
Net interest income collected on problem loans		(146	)		123			283			(820	)		364			(23	)		756
Accretion recognized on purchased loans		897			800			1,117			1,290			874			1,697			1,759
Adjustments to net interest income	$	751		$	923		$	1,400		$	470		$	1,238		$	1,674		$	2,515
Adjusted net interest income (FTE) (non-GAAP)	$	126,847		$	124,927		$	127,195		$	129,661		$	131,847		$	251,774		$	269,099

Net interest margin (GAAP)		3.31	%		3.30	%		3.33	%		3.36	%		3.45	%		3.30	%		3.56	%
Adjusted net interest margin (non-GAAP)		3.29	%		3.28	%		3.29	%		3.35	%		3.43	%		3.28	%		3.52	%

Adjusted Loan Yield
Loan interest income (FTE) (GAAP)	$	200,670		$	194,640		$	190,857		$	183,521		$	175,549		$	395,310		$	339,519
Net interest income collected on problem loans		(146	)		123			283			(820	)		364			(23	)		756
Accretion recognized on purchased loans		897			800			1,117			1,290			874			1,697			1,759
Adjusted loan interest income (FTE) (non-GAAP)	$	199,919		$	193,717		$	189,457		$	183,051		$	174,311		$	393,636		$	337,004

Loan yield (GAAP)		6.41	%		6.30	%		6.18	%		6.06	%		5.93	%		6.35	%		5.81	%
Adjusted loan yield (non-GAAP)		6.38	%		6.27	%		6.14	%		6.04	%		5.89	%		6.32	%		5.76	%

_{⁽¹⁾ Tax effect is calculated based on the respective periods' year-to-date effective tax rate excluding the impact of discrete items.}

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

Renasant Corporation Announces Earnings For the Second Quarter of 2024