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Contacts:For Media:For Financials:
John S. OxfordJames C. Mabry IV
Senior Vice PresidentExecutive Vice President
Director of MarketingChief Financial Officer
(662) 680-1219(662) 680-1281

RENASANT CORPORATION ANNOUNCES
EARNINGS FOR THE FIRST QUARTER OF 2022

TUPELO, MISSISSIPPI (April 26, 2022) - 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
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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.
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Income Statement
(Dollars in thousands, except per share data)Three Months Ended
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Interest income
Loans held for investment$95,829 $98,478 $102,627 $109,721 $112,006 
Loans held for sale2,863 3,652 2,377 3,604 2,999 
Securities10,835 9,221 8,416 7,321 6,574 
Other664 568 593 345 183 
Total interest income110,191 111,919 114,013 120,991 121,762 
Interest expense
Deposits5,637 6,056 6,972 7,669 8,279 
Borrowings4,925 4,381 3,749 3,743 3,835 
Total interest expense10,562 10,437 10,721 11,412 12,114 
Net interest income99,629 101,482 103,292 109,579 109,648 
Provision for (recovery of) credit losses
Provision for (recovery of) loan losses1,500 (500)(1,200)— — 
Provision for credit losses on HTM securities— 32 — — — 
Total provision for (recovery of) credit losses1,500 (468)(1,200)— — 
Net interest income after provision for (recovery of) credit losses98,129 101,950 104,492 109,579 109,648 
Noninterest income37,458 47,582 50,755 47,610 81,037 
Noninterest expense94,105 101,115 103,999 108,777 115,935 
Income before income taxes41,482 48,417 51,248 48,412 74,750 
Income taxes7,935 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 share0.60 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 outstanding55,809,192 55,751,487 56,146,285 56,325,717 56,240,201 
Average diluted shares outstanding56,081,863 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 

(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.
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Performance Ratios
Three Months Ended
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Return on average assets0.81 %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 equity6.05 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 ratio36.67 33.33 30.99 30.14 21.36 

Capital and Balance Sheet Ratios
As of
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Shares outstanding55,880,666 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 share38.25 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 assets12.68 %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 ratio9.00 9.15 9.18 9.30 9.49 
Common equity tier 1 capital ratio10.78 11.18 11.02 11.14 11.05 
Tier 1 risk-based capital ratio11.67 12.10 11.94 12.07 12.00 
Total risk-based capital ratio15.50 16.14 14.66 15.11 15.09 

(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.
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Noninterest Income and Noninterest Expense
(Dollars in thousands)Three Months Ended
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Noninterest income
Service charges on deposit accounts$9,562 $9,751 $9,337 $9,458 $8,023 
Fees and commissions3,982 3,885 3,837 4,110 3,900 
Insurance commissions2,554 2,353 2,829 2,422 2,237 
Wealth management revenue5,924 5,273 5,371 5,019 4,792 
Mortgage banking income9,633 14,726 23,292 20,853 50,733 
Swap termination gains— 4,676 — — — 
Net gains on sales of securities— 49 764 — 1,357 
BOLI income2,153 2,048 1,602 1,644 2,072 
Other3,650 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 processing4,263 5,346 5,277 5,652 5,451 
Net occupancy and equipment11,276 11,177 11,748 11,374 12,538 
Other real estate owned(241)(60)168 104 41 
Professional fees3,151 3,209 2,972 2,674 2,921 
Advertising and public relations4,059 2,929 2,922 3,100 3,252 
Intangible amortization1,366 1,424 1,481 1,539 1,598 
Communications2,027 2,088 2,198 2,291 2,292 
Merger and conversion related expenses687 — — — — 
Restructuring (benefit) charges(455)61 — 15 292 
Debt prepayment penalty— 6,123 — — — 
Other5,733 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, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Gain on sales of loans, net$6,047 $10,801 $20,116 $17,581 $33,901 
Fees, net3,053 4,320 3,420 4,519 4,902 
Mortgage servicing income (loss), net533 (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 
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Balance Sheet
(Dollars in thousands)As of
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 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 cost487,194 416,357 — — — 
Securities available for sale, at fair value2,405,316 2,386,052 2,544,643 2,163,820 1,536,041 
Loans held for sale, at fair value280,464 453,533 452,869 448,959 502,002 
Loans:
Non purchased9,338,890 9,011,012 8,875,880 8,892,544 9,292,502 
Purchased974,569 1,009,902 1,140,944 1,256,698 1,395,906 
Total loans10,313,459 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, net10,146,991 9,856,743 9,846,786 9,976,888 10,515,302 
Premises and equipment, net285,344 293,122 294,499 293,203 300,917 
Other real estate owned2,062 2,540 4,705 4,939 5,971 
Goodwill946,291 939,683 939,683 939,683 939,683 
Other intangibles22,731 24,098 25,522 27,003 28,542 
Bank-owned life insurance369,344 287,359 286,088 279,444 233,508 
Mortgage servicing rights91,730 89,018 86,387 84,912 80,263 
Other assets218,797 183,841 198,227 198,047 218,426 
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-bearing9,284,641 9,187,600 8,762,179 8,766,216 8,601,548 
Total deposits13,990,897 13,905,724 13,254,829 13,115,351 12,736,908 
Short-term borrowings111,279 13,947 11,253 14,933 12,154 
Long-term debt435,416 471,209 468,863 469,406 467,660 
Other liabilities188,523 209,578 216,661 218,889 232,148 
Total liabilities14,726,115 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 capital1,297,088 1,300,192 1,298,022 1,295,879 1,294,911 
Retained earnings762,690 741,648 717,033 689,444 661,117 
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 


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Net Interest Income and Net Interest Margin
(Dollars in thousands)Three Months Ended
March 31, 2022December 31, 2021March 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 loans983,523 11,729 4.82 %1,079,630 13,823 5.09 %1,454,637 20,457 5.69 %
PPP loans39,506 619 6.36 %62,726 485 3.07 %985,561 10,687 4.40 %
Total loans10,108,511 97,001 3.88 %9,948,610 99,670 3.98 %10,802,991 113,072 4.24 %
Loans held for sale330,442 2,863 3.48 %498,724 3,652 2.93 %406,397 2,999 2.96 %
Taxable securities2,499,822 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 securities2,938,202 11,417 1.55 %2,637,949 9,796 1.49 %1,372,123 7,124 2.08 %
Interest-bearing balances with banks1,463,991 664 0.18 %1,522,433 568 0.15 %777,166 183 0.10 %
Total interest-earning assets14,841,146 111,945 3.05 %14,607,716 113,686 3.09 %13,358,677 123,378 3.74 %
Cash and due from banks206,224 201,941 205,830 
Intangible assets965,430 964,575 969,001 
Other assets684,464 676,408 670,183 
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 deposits1,097,560 139 0.05 %1,045,784 151 0.06 %882,758 169 0.08 %
Time deposits1,374,722 1,851 0.55 %1,434,162 2,418 0.67 %1,655,778 4,178 1.02 %
Total interest-bearing deposits9,108,674 5,637 0.25 %8,940,124 6,056 0.27 %8,444,766 8,279 0.40 %
Borrowed funds485,777 4,925 4.08 %434,546 4,381 4.03 %483,907 3,835 3.19 %
Total interest-bearing liabilities9,594,451 10,562 0.44 %9,374,670 10,437 0.44 %8,928,673 12,114 0.55 %
Noninterest-bearing deposits4,651,793 4,633,885 3,862,422 
Other liabilities201,353 210,404 240,171 
Shareholders’ equity2,249,667 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 funding0.30 %0.30 %0.38 %
Cost of total deposits0.17 %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.


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Supplemental Margin Information
(Dollars in thousands)Three Months Ended
Mar 31, 2022Dec 31, 2021Mar 31, 2021
Earning asset mix:
Loans held for investment, excluding PPP loans67.84 %67.68 %73.49 %
PPP loans0.27 0.43 7.38 
Loans held for sale2.23 3.41 3.04 
Securities19.80 18.06 10.27 
Interest-bearing balances with banks9.86 10.42 5.82 
Total100.00 %100.00 %100.00 %
Funding sources mix:
Noninterest-bearing demand32.65 %33.08 %30.20 %
Interest-bearing demand46.59 46.11 46.18 
Savings 7.70 7.47 6.90 
Time deposits9.65 10.24 12.94 
Borrowed funds3.41 3.10 3.78 
Total100.00 %100.00 %100.00 %
Net interest income collected on problem loans$434 $578 $2,180 
Total accretion on purchased loans1,235 2,187 3,088 
Total impact on net interest income$1,669 $2,765 $5,268 
Impact on net interest margin0.05 %0.08 %0.16 %
Impact on loan yield0.07 %0.11 %0.20 %
Interest income on PPP loans$619 $485 $10,687 
PPP impact on net interest margin0.01 %— %0.07 %
PPP impact on loan yield0.01 %— %0.01 %
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Loan Portfolio
(Dollars in thousands)As of
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Loan Portfolio:
Commercial, financial, agricultural$1,437,225 $1,364,879 $1,368,557 $1,387,702 $1,388,423 
Lease financing89,842 76,125 79,215 74,003 75,256 
Real estate - construction1,222,052 1,104,896 1,091,296 1,051,359 955,918 
Real estate - 1-4 family mortgages2,840,979 2,724,246 2,724,743 2,702,091 2,686,061 
Real estate - commercial mortgages4,577,864 4,549,037 4,535,730 4,530,169 4,549,027 
Installment loans to individuals137,115 143,340 149,821 156,987 172,859 
Subtotal10,305,077 9,962,523 9,949,362 9,902,311 9,827,544 
PPP8,382 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, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 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 due209 1,074 908 800 2,235 
Total non purchased nonperforming loans32,782 31,825 30,174 27,901 27,029 
Non purchased other real estate owned531 951 2,252 1,675 2,292 
Total non purchased nonperforming assets33,313 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 due38 367 74 945 129 
Total purchased nonperforming loans19,460 18,980 26,566 28,635 29,076 
Purchased other real estate owned1,531 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 loans0.03 %0.21 %0.04 %0.03 %0.11 %
Nonperforming loans / total loans0.51 0.51 0.57 0.56 0.52 
Nonperforming assets / total assets0.32 0.32 0.38 0.38 0.40 
Allowance for credit losses on loans / total loans1.61 1.64 1.70 1.70 1.62 
Allowance for credit losses on loans / nonperforming loans318.65 323.14 299.68 304.86 308.54 
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 
(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.
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CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time (9:00 AM Central Time) on Wednesday, April 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.

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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.


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Non-GAAP Reconciliations

(Dollars in thousands, except per share data)Three Months Ended
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Adjusted Pre-Provision Net Revenue (“PPNR”)
Net income (GAAP)$33,547 $37,054 $40,063 $40,867 $57,908 
Income taxes7,935 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 expense687 — — — — 
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 intangibles1,366 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 expense687 — — — — 
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 intangibles1,366 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 assets965,430 964,575 965,960 967,430 969,001 
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 assets965,430 964,575 965,960 967,430 969,001 
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 assets969,022 963,781 965,205 966,686 968,225 
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 assets969,022 963,781 965,205 966,686 968,225 
Total tangible assets (non-GAAP)$15,894,735 $15,846,530 $15,190,345 $15,055,700 $14,654,346 
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(Dollars in thousands, except per share data)Three Months Ended
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
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 outstanding56,081,86356,105,05056,447,18456,635,89856,519,199
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 outstanding55,880,66655,756,23355,747,40756,350,87856,294,346
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 intangibles1,366 1,424 1,481 1,539 1,598 
Merger and conversion expense687 — — — — 
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 %
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(Dollars in thousands, except per share data)Three Months Ended
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
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 loans434 577 316 1,339 2,180 
Accretion recognized on purchased loans1,235 2,187 2,871 2,638 3,088 
Interest income recognized on PPP loans619 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 loans39,506 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 loans434 578 316 1,339 2,180 
Accretion recognized on purchased loans1,235 2,187 2,871 2,638 3,088 
Interest income recognized on PPP loans619 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 loans39,506 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 loans8,382 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 loans76,949 115,496 138,497 125,507 120,320 
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 %
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(Dollars in thousands, except per share data)Three Months Ended
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Average loans (GAAP)$10,108,511 $9,948,610 $10,017,742 $10,478,121 $10,802,991 
Average PPP loans39,506 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 loans8,382 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.




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