Document


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

RENASANT CORPORATION ANNOUNCES

EARNINGS FOR THE SECOND QUARTER OF 2022

TUPELO, MISSISSIPPI (July 26, 2022) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the second quarter of 2022. Net income for the second quarter of 2022 was $39.7 million, as compared to $40.9 million for the second quarter of 2021. Basic and diluted earnings per share (“EPS”) were $0.71 for the second quarter of 2022, as compared to basic and diluted EPS of $0.73 and $0.72, respectively, for the second quarter of 2021.

"Our results for the second quarter reflect improved profitability on a linked quarter basis. Earnings benefited from expansion in the net interest margin, effective expense management, contributions from our wealth management and insurance lines of business and solid loan growth," remarked C. Mitchell Waycaster, Renasant President and Chief Executive Officer. "The balance sheet continues to reflect good liquidity, core funding, asset quality and capital levels."

Quarterly Highlights

Earnings

•Net income for the second quarter of 2022 was $39.7 million with diluted EPS of $0.71

•Net interest income (fully tax equivalent) for the second quarter of 2022 was $115.3 million, up $13.9 million on a linked quarter basis

•For the second quarter of 2022, net interest margin was 3.11%, up 35 basis points on a linked quarter basis

•Cost of total deposits was 15 basis points for the second quarter of 2022, down 2 basis points on a linked quarter basis

•Our wealth management and insurance lines of business produced strong results during the second quarter of 2022

•Our mortgage division generated $0.9 billion in interest rate lock volume during the second quarter of 2022, compared to $1.2 billion during the first quarter of 2022. Gain on sale margin was 1.27% for the second quarter of 2022, down 54 basis points on a linked quarter basis

•Second quarter noninterest expense increased by $4.1 million on a linked quarter basis, primarily driven by an increase in salaries and benefits, as annual merit increases and an increase to our minimum wage took effect during the quarter, and a one-time restructuring charge of $1.2 million resulting from the early termination of a lease agreement

Balance Sheet

•Loans increased $290.3 million, or 11.3% annualized, during the second quarter of 2022 from the balance at March 31, 2022

•The securities portfolio increased $124.6 million during the second quarter of 2022, comprised of net additions to the portfolio during the quarter of $201.0 million and a negative fair market value adjustment in our available-for-sale portfolio of $76.4 million

•Deposits at June 30, 2022 decreased $227.0 million from March 31, 2022, primarily driven by a decrease in interest bearing deposits. Noninterest bearing deposits increased $35.1 million from March 31, 2022 and represented 34.45% of total deposits at June 30, 2022

Capital

•Book value per share and tangible book value per share (non-GAAP)(1) decreased 1.0% and 1.7%, respectively, on a linked quarter basis, driven by a decrease in accumulated other comprehensive income, which lowered tangible book value per share by $0.91

•The Company has a $50 million stock repurchase program that will remain in effect through October 2022; there was no buyback activity during the second quarter of 2022

Credit Quality

•The Company recorded a provision for credit losses on loans of $2.0 million and a provision for unfunded commitments (recorded in other noninterest expense) of $450 thousand for the second quarter of 2022

•The allowance for credit losses on loans to total loans decreased on a linked quarter basis to 1.57% at June 30, 2022 as compared to 1.61% at March 31, 2022

•The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 373.21% at June 30, 2022, compared to 318.65% at March 31, 2022

•Net loan charge-offs for the second quarter of 2022 were $2.3 million, or 0.09% of average loans on an annualized basis

•Credit metrics remained relatively stable on a linked quarter basis. Nonperforming loans to total loans decreased to 0.42% at June 30, 2022 compared to 0.51% at March 31, 2022 and criticized loans (which include classified and special mention loans) to total loans increased to 2.57% at June 30, 2022, compared 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										Six Months Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Interest income
Loans held for investment	$	106,409	$	95,829	$	98,478	$	102,627	$	109,721	$	202,238	$	221,727
Loans held for sale	2,586		2,863		3,652		2,377		3,604		5,449		6,603
Securities	12,471		10,835		9,221		8,416		7,321		23,306		13,895
Other	1,954		664		568		593		345		2,618		528
Total interest income	123,420		110,191		111,919		114,013		120,991		233,611		242,753
Interest expense
Deposits	5,018		5,637		6,056		6,972		7,669		10,655		15,948
Borrowings	4,887		4,925		4,381		3,749		3,743		9,812		7,578
Total interest expense	9,905		10,562		10,437		10,721		11,412		20,467		23,526
Net interest income	113,515		99,629		101,482		103,292		109,579		213,144		219,227
Provision for (recovery of) credit losses
Provision for (recovery of) loan losses	2,000		1,500		(500)		(1,200)		—		3,500		—
Provision for credit losses on HTM securities	—		—		32		—		—		—		—

Total provision for (recovery of) credit losses	2,000		1,500		(468)		(1,200)		—		3,500		—
Net interest income after provision for (recovery of) credit losses	111,515		98,129		101,950		104,492		109,579		209,644		219,227
Noninterest income	37,214		37,458		47,582		50,755		47,610		74,672		128,647
Noninterest expense	98,194		94,105		101,115		103,999		108,777		192,299		224,712
Income before income taxes	50,535		41,482		48,417		51,248		48,412		92,017		123,162
Income taxes	10,857		7,935		11,363		11,185		7,545		18,792		24,387
Net income	$	39,678	$	33,547	$	37,054	$	40,063	$	40,867	$	73,225	$	98,775

Adjusted net income (non-GAAP)(1)	$	40,601	$	33,728	$	38,232	$	40,315	$	41,169	$	74,329	$	89,363
Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1)	$	54,172	$	42,664	$	49,190	$	50,171	$	48,797	$	96,836	$	111,063

Basic earnings per share	$	0.71	$	0.60	$	0.66	$	0.71	$	0.73	$	1.31	$	1.75
Diluted earnings per share	0.71		0.60		0.66		0.71		0.72		1.30		1.75

Adjusted diluted earnings per share (non-GAAP)(1)	0.72		0.60		0.68		0.71		0.73		1.32		1.58
Average basic shares outstanding	55,906,755		55,809,192		55,751,487		56,146,285		56,325,717		55,858,243		56,283,195
Average diluted shares outstanding	56,182,845		56,081,863		56,105,050		56,447,184		56,635,898		56,130,762		56,578,580
Cash dividends per common share	$	0.22	$	0.22	$	0.22	$	0.22	$	0.22	$	0.44	$	0.44

Performance Ratios


	Three Months Ended										Six Months Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Return on average assets	0.96	%	0.81	%	0.89	%	0.99	%	1.04	%	0.89	%	1.28	%
Adjusted return on average assets (non-GAAP)(1)	0.98		0.82		0.92		0.99		1.04		0.90		1.16
Return on average tangible assets (non-GAAP)(1)	1.04		0.89		0.98		1.08		1.14		0.97		1.40
Adjusted return on average tangible assets (non-GAAP)(1)	1.07		0.90		1.01		1.09		1.14		0.98		1.27
Return on average equity	7.31		6.05		6.59		7.16		7.40		6.67		9.08
Adjusted return on average equity (non-GAAP)(1)	7.48		6.08		6.80		7.21		7.46		6.77		8.22
Return on average tangible equity (non-GAAP)(1)	13.50		10.93		11.94		13.05		13.54		12.18		16.66
Adjusted return on average tangible equity (non-GAAP)(1)	13.81		10.99		12.31		13.13		13.64		12.36		15.11
Efficiency ratio (fully taxable equivalent)	64.37		67.78		67.04		66.77		68.49		66.00		64.00
Adjusted efficiency ratio (non-GAAP)(1)	62.44		67.02		64.18		66.06		67.28		64.63		65.47
Dividend payout ratio	30.99		36.67		33.33		30.99		30.14		33.59		25.14

Capital and Balance Sheet Ratios


	As of
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
Shares outstanding	55,932,017			55,880,666			55,756,233			55,747,407			56,350,878
Market value per share	$	28.81		$	33.45		$	37.95		$	36.05		$	40.00
Book value per share	37.85			38.25			39.63			39.53			39.11
Tangible book value per share (non-GAAP)(1)	20.55			20.91			22.35			22.22			21.95
Shareholders' equity to assets	12.74		%	12.68		%	13.15		%	13.64		%	13.75		%
Tangible common equity ratio (non-GAAP)(1)	7.34			7.35			7.86			8.15			8.22
Leverage ratio	9.16			9.00			9.15			9.18			9.30
Common equity tier 1 capital ratio	10.74			10.78			11.18			11.02			11.14
Tier 1 risk-based capital ratio	11.60			11.67			12.10			11.94			12.07
Total risk-based capital ratio	15.34			15.51			16.14			14.66			15.11

Noninterest Income and Noninterest Expense


(Dollars in thousands)	Three Months Ended										Six Months Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Noninterest income
Service charges on deposit accounts	$	9,734	$	9,562	$	9,751	$	9,337	$	9,458	$	19,296	$	17,481
Fees and commissions	4,668		3,982		3,885		3,837		4,110		8,650		8,010
Insurance commissions	2,591		2,554		2,353		2,829		2,422		5,145		4,659
Wealth management revenue	5,711		5,924		5,273		5,371		5,019		11,635		9,811
Mortgage banking income	8,316		9,633		14,726		23,292		20,853		17,949		71,586
Swap termination gains	—		—		4,676		—		—		—		—
Net gains on sales of securities	—		—		49		764		—		—		1,357
BOLI income	2,331		2,153		2,048		1,602		1,644		4,484		3,716
Other	3,863		3,650		4,821		3,723		4,104		7,513		12,027
Total noninterest income	$	37,214	$	37,458	$	47,582	$	50,755	$	47,610	$	74,672	$	128,647
Noninterest expense
Salaries and employee benefits	$	65,580	$	62,239	$	62,523	$	69,115	$	70,293	$	127,819	$	148,989
Data processing	3,590		4,263		5,346		5,277		5,652		7,853		11,103
Net occupancy and equipment	11,155		11,276		11,177		11,748		11,374		22,431		23,912
Other real estate owned	(187)		(241)		(60)		168		104		(428)		145
Professional fees	2,778		3,151		3,209		2,972		2,674		5,929		5,595
Advertising and public relations	3,406		4,059		2,929		2,922		3,100		7,465		6,352
Intangible amortization	1,310		1,366		1,424		1,481		1,539		2,676		3,137
Communications	1,904		2,027		2,088		2,198		2,291		3,931		4,583
Merger and conversion related expenses	—		687		—		—		—		687		—
Restructuring charges (benefit)	1,187		(455)		61		—		15		732		307

Debt prepayment penalty	—		—		6,123		—		—		—		—
Other	7,471		5,733		6,295		8,118		11,735		13,204		20,589
Total noninterest expense	$	98,194	$	94,105	$	101,115	$	103,999	$	108,777	$	192,299	$	224,712

Mortgage Banking Income


(Dollars in thousands)	Three Months Ended										Six Months Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Gain on sales of loans, net	$	3,490	$	6,047	$	10,801	$	20,116	$	17,581	$	9,537	$	51,482
Fees, net	3,064		3,053		4,320		3,420		4,519		6,117		9,421
Mortgage servicing income (loss), net	1,762		533		(395)		(244)		(1,247)		2,295		(2,878)
MSR valuation adjustment	—		—		—		—		—		—		13,561
Total mortgage banking income	$	8,316	$	9,633	$	14,726	$	23,292	$	20,853	$	17,949	$	71,586

Balance Sheet


(Dollars in thousands)	As of
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021
Assets
Cash and cash equivalents	$	1,010,468	$	1,607,493	$	1,877,965	$	1,476,141	$	1,605,488
Securities held to maturity, at amortized cost	488,851		487,194		416,357		—		—
Securities available for sale, at fair value	2,528,253		2,405,316		2,386,052		2,544,643		2,163,820
Loans held for sale, at fair value	196,598		280,464		453,533		452,869		448,959
Loans:
Non purchased	9,692,116		9,338,890		9,011,011		8,875,880		8,892,544
Purchased	911,628		974,569		1,009,903		1,140,944		1,256,698
Total loans	10,603,744		10,313,459		10,020,914		10,016,824		10,149,242
Allowance for credit losses on loans	(166,131)		(166,468)		(164,171)		(170,038)		(172,354)
Loans, net	10,437,613		10,146,991		9,856,743		9,846,786		9,976,888
Premises and equipment, net	284,035		285,344		293,122		294,499		293,203
Other real estate owned	2,807		2,062		2,540		4,705		4,939
Goodwill	946,291		946,291		939,683		939,683		939,683
Other intangibles	21,422		22,731		24,098		25,522		27,003
Bank-owned life insurance	371,298		369,344		287,359		286,088		279,444
Mortgage servicing rights	94,743		91,730		89,018		86,387		84,912
Other assets	235,722		218,797		183,841		198,227		198,047
Total assets	$	16,618,101	$	16,863,757	$	16,810,311	$	16,155,550	$	16,022,386

Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing	$	4,741,397	$	4,706,256	$	4,718,124	$	4,492,650	$	4,349,135
Interest-bearing	9,022,532		9,284,641		9,187,600		8,762,179		8,766,216
Total deposits	13,763,929		13,990,897		13,905,724		13,254,829		13,115,351
Short-term borrowings	112,642		111,279		13,947		11,253		14,933
Long-term debt	431,553		435,416		471,209		468,863		469,406
Other liabilities	193,100		188,523		209,578		216,661		218,889
Total liabilities	14,501,224		14,726,115		14,600,458		13,951,606		13,818,579

Shareholders’ equity:
Preferred stock	—		—		—		—		—
Common stock	$	296,483	$	296,483	$	296,483	$	296,483	$	296,483
Treasury stock	(112,295)		(114,050)		(118,027)		(118,288)		(97,249)
Additional paid-in capital	1,298,207		1,297,088		1,300,192		1,298,022		1,295,879
Retained earnings	789,880		762,690		741,648		717,033		689,444
Accumulated other comprehensive (loss) income	(155,398)		(104,569)		(10,443)		10,694		19,250
Total shareholders’ equity	2,116,877		2,137,642		2,209,853		2,203,944		2,203,807
Total liabilities and shareholders’ equity	$	16,618,101	$	16,863,757	$	16,810,311	$	16,155,550	$	16,022,386

Net Interest Income and Net Interest Margin


(Dollars in thousands)	Three Months Ended
	June 30, 2022						March 31, 2022						June 30, 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	$	9,524,654	$	93,302	3.93	%	$	9,085,482	$	84,653	3.77	%	$	8,521,028	$	82,774	3.90	%
Purchased loans	944,519		14,236		6.04	%	983,523		11,729		4.82	%	1,328,631		17,891		5.40	%
PPP loans	7,863		74		3.76	%	39,506		619		6.36	%	628,462		10,120		6.46	%
Total loans	10,477,036		107,612		4.12	%	10,108,511		97,001		3.88	%	10,478,121		110,785		4.24	%
Loans held for sale	227,435		2,586		4.55	%	330,442		2,863		3.48	%	461,752		3,604		3.12	%
Taxable securities	2,684,624		10,355		1.54	%	2,499,822		8,782		1.41	%	1,503,605		5,549		1.48	%
Tax-exempt securities(1)	451,878		2,719		2.41	%	438,380		2,635		2.40	%	317,824		2,333		2.94	%
Total securities	3,136,502		13,074		1.67	%	2,938,202		11,417		1.55	%	1,821,429		7,882		1.73	%
Interest-bearing balances with banks	1,004,226		1,954		0.78	%	1,463,991		664		0.18	%	1,227,962		346		0.11	%
Total interest-earning assets	14,845,199		125,226		3.38	%	14,841,146		111,945		3.05	%	13,989,264		122,617		3.51	%
Cash and due from banks	206,882						206,224						195,982
Intangible assets	968,441						965,430						967,430
Other assets	610,768						684,464						678,342
Total assets	$	16,631,290					$	16,697,264					$	15,831,018
Interest-bearing liabilities:
Interest-bearing demand(2)	$	6,571,905	$	3,598	0.22	%	$	6,636,392	$	3,647	0.22	%	$	6,109,956	$	4,069	0.27	%
Savings deposits	1,137,607		147		0.05	%	1,097,560		139		0.05	%	969,982		185		0.08	%
Time deposits	1,303,735		1,273		0.39	%	1,374,722		1,851		0.55	%	1,564,448		3,415		0.88	%
Total interest-bearing deposits	9,013,247		5,018		0.22	%	9,108,674		5,637		0.25	%	8,644,386		7,669		0.36	%
Borrowed funds	543,728		4,887		3.60	%	485,777		4,925		4.08	%	483,081		3,743		3.11	%
Total interest-bearing liabilities	9,556,975		9,905		0.42	%	9,594,451		10,562		0.44	%	9,127,467		11,412		0.50	%
Noninterest-bearing deposits	4,714,161						4,651,793						4,271,464
Other liabilities	182,617						201,353						218,344
Shareholders’ equity	2,177,537						2,249,667						2,213,743
Total liabilities and shareholders’ equity	$	16,631,290					$	16,697,264					$	15,831,018
Net interest income/ net interest margin			$	115,321	3.11	%			$	101,383	2.76	%			$	111,205	3.19	%
Cost of funding					0.28	%					0.30	%					0.34	%
Cost of total deposits					0.15	%					0.17	%					0.24	%

(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, 2022					June 30, 2021
	Average Balance		Interest Income/ Expense		Yield/ Rate	Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-earning assets:
Non purchased loans	$	9,306,356	$	177,955	3.85%	$	8,441,910	$	164,702	3.93%
Purchased loans	964,001		25,965		5.42%	1,391,634		38,347		5.55%
PPP loans	23,592		693		5.92%	807,012		20,807		5.20%
Total loans	10,293,949		204,613		4.00%	10,640,556		223,856		4.24%
Loans held for sale	278,722		5,449		3.91%	434,075		6,604		3.05%
Taxable securities(1)	2,592,645		19,137		1.48%	1,284,692		10,389		1.62%
Tax-exempt securities	445,154		5,354		2.41%	312,084		4,617		2.96%
Total securities	3,037,799		24,491		1.61%	1,596,776		15,006		1.88%
Interest-bearing balances with banks	1,233,241		2,618		0.43%	1,002,564		529		0.11%
Total interest-earning assets	14,843,711		237,171		3.21%	13,673,971		245,995		3.62%
Cash and due from banks	206,559					200,906
Intangible assets	966,956					968,215
Other assets	647,254					674,262
Total assets	$	16,664,480				$	15,517,354
Interest-bearing liabilities:
Interest-bearing demand(2)	$	6,603,986	$	7,245	0.22%	$	6,008,093	$	8,002	0.27%
Savings deposits	1,117,724		286		0.05%	926,370		354		0.08%
Time deposits	1,339,022		3,124		0.47%	1,610,113		7,593		0.95%
Total interest-bearing deposits	9,060,732		10,655		0.24%	8,544,576		15,949		0.38%
Borrowed funds	514,940		9,812		3.82%	483,494		7,577		3.16%
Total interest-bearing liabilities	9,575,672		20,467		0.43%	9,028,070		23,526		0.53%
Noninterest-bearing deposits	4,683,446					4,066,943
Other liabilities	191,938					229,257
Shareholders’ equity	2,213,424					2,193,084
Total liabilities and shareholders’ equity	$	16,664,480				$	15,517,354
Net interest income/ net interest margin			$	216,704	2.94%			$	222,469	3.28%
Cost of funding					0.29%					0.36%
Cost of total deposits					0.16%					0.26%

(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									Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
Earning asset mix:
Loans held for investment, excluding PPP loans	70.52		%	67.84		%	70.41		%	69.19		%	71.91		%
PPP loans	0.05			0.27			4.49			0.16			5.90
Loans held for sale	1.53			2.23			3.30			1.88			3.17
Securities	21.13			19.80			13.02			20.47			11.68
Interest-bearing balances with banks	6.77			9.86			8.78			8.30			7.34
Total	100.00		%	100.00		%	100.00		%	100.00		%	100.00		%

Funding sources mix:
Noninterest-bearing demand	33.03		%	32.65		%	31.88		%	32.85		%	31.06		%
Interest-bearing demand	46.05			46.59			45.60			46.31			45.88
Savings	7.97			7.70			7.24			7.84			7.07
Time deposits	9.14			9.65			11.68			9.39			12.30
Borrowed funds	3.81			3.41			3.60			3.61			3.69
Total	100.00		%	100.00		%	100.00		%	100.00		%	100.00		%

Net interest income collected on problem loans	$	2,276		$	434		$	1,339		$	2,710		$	3,519
Total accretion on purchased loans	2,021			1,235			2,638			3,256			5,726
Total impact on net interest income	$	4,297		$	1,669		$	3,977		$	5,966		$	9,245
Impact on net interest margin	0.11		%	0.05		%	0.11		%	0.08		%	0.14		%
Impact on loan yield	0.16		%	0.07		%	0.15		%	0.12		%	0.18		%

Interest income on PPP loans	$	74		$	619		$	10,120		$	693		$	20,807
PPP impact on net interest margin	—		%	0.01		%	0.15		%	—		%	0.12		%
PPP impact on loan yield	—		%	0.01		%	0.14		%	—		%	0.08		%

Loan Portfolio


(Dollars in thousands)	As of
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021
Loan Portfolio:





















Commercial, financial, agricultural	$	1,489,889	$	1,437,225	$	1,364,879	$	1,368,557	$	1,387,702
Lease financing	101,350		89,842		76,125		79,215		74,003
Real estate - construction	1,126,363		1,222,052		1,104,896		1,091,296		1,051,359
Real estate - 1-4 family mortgages	3,030,083		2,840,979		2,724,246		2,724,743		2,702,091
Real estate - commercial mortgages	4,717,513		4,577,864		4,549,037		4,535,730		4,530,169
Installment loans to individuals	131,163		137,115		143,340		149,821		156,987
Subtotal	10,596,361		10,305,077		9,962,523		9,949,362		9,902,311
PPP	7,383		8,382		58,391		67,462		246,931
Total loans	$	10,603,744	$	10,313,459	$	10,020,914	$	10,016,824	$	10,149,242

Credit Quality and Allowance for Credit Losses on Loans


(Dollars in thousands)	As of
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
Nonperforming Assets:
Non purchased
Non purchased nonaccruing loans	$	32,284		$	32,573		$	30,751		$	29,266		$	27,101
Non purchased loans 90 days or more past due	479			209			1,074			908			800
Total non purchased nonperforming loans	32,763			32,782			31,825			30,174			27,901
Non purchased other real estate owned	1,332			531			951			2,252			1,675
Total non purchased nonperforming assets	34,095			33,313			32,776			32,426			29,576
Purchased
Purchased nonaccruing loans	$	11,613		$	19,422		$	18,613		$	26,492		$	27,690
Purchased loans 90 days or more past due	138			38			367			74			945
Total purchased nonperforming loans	11,751			19,460			18,980			26,566			28,635
Purchased other real estate owned	1,475			1,531			1,589			2,453			3,264
Total purchased nonperforming assets	$	13,226		$	20,991		$	20,569		$	29,019		$	31,899
Total nonperforming loans	$	44,514		$	52,242		$	50,805		$	56,740		$	56,536
Total nonperforming assets	$	47,321		$	54,304		$	53,345		$	61,445		$	61,475





Allowance for credit losses on loans	$	166,131		$	166,468		$	164,171		$	170,038		$	172,354
Net loan charge-offs	$	2,337		$	851		$	5,367		$	1,116		$	752
Annualized net loan charge-offs / average loans	0.09		%	0.03		%	0.21		%	0.04		%	0.03		%
Nonperforming loans / total loans	0.42			0.51			0.51			0.57			0.56
Nonperforming assets / total assets	0.28			0.32			0.32			0.38			0.38
Allowance for credit losses on loans / total loans	1.57			1.61			1.64			1.70			1.70
Allowance for credit losses on loans / nonperforming loans	373.21			318.65			323.14			299.68			304.86
Nonperforming loans / total loans excluding PPP loans (non-GAAP)(1)	0.42			0.51			0.51			0.57			0.57
Nonperforming assets / total assets excluding PPP loans (non-GAAP)(1)	0.28			0.32			0.32			0.38			0.39
Allowance for credit losses on loans / total loans excluding PPP loans (non-GAAP)(1)	1.57			1.62			1.65			1.71			1.74

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 27, 2022.

The webcast can be accessed through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=ujFQbKbk. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2022 Second 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 4305224 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 10, 2022.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 118-year-old financial services institution. Renasant has assets of approximately $16.6 billion and operates 195 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, (viii) 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										Six Months Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Adjusted Pre-Provision Net Revenue (“PPNR”)
Net income (GAAP)	$	39,678	$	33,547	$	37,054	$	40,063	$	40,867	$	73,225	$	98,775
Income taxes	10,857		7,935		11,363		11,185		7,545		18,792		24,387
Provision for (recovery of) credit losses (including unfunded commitments)	2,450		950		(768)		(1,400)		—		3,400		—
Pre-provision net revenue (non-GAAP)	$	52,985	$	42,432	$	47,649	$	49,848	$	48,412	$	95,417	$	123,162
Merger and conversion expense	—		687		—		—		—		687		—
Debt prepayment penalties	—		—		6,123		—		—		—		—
Swap termination gains	—		—		(4,676)		—		—		—		—
MSR valuation adjustment	—		—		—		—		—		—		(13,561)
Restructuring charges (benefit)	1,187		(455)		61		—		15		732		307

COVID-19 related expenses(1)	—		—		33		323		370		—		1,155
Adjusted pre-provision net revenue (non-GAAP)	$	54,172	$	42,664	$	49,190	$	50,171	$	48,797	$	96,836	$	111,063

Adjusted Net Income and Adjusted Tangible Net Income
Net income (GAAP)	$	39,678	$	33,547	$	37,054	$	40,063	$	40,867	$	73,225	$	98,775
Amortization of intangibles	1,310		1,366		1,424		1,481		1,539		2,676		3,137
Tax effect of adjustments noted above(2)	(291)		(303)		(335)		(323)		(333)		(594)		(697)
Tangible net income (non-GAAP)	$	40,697	$	34,610	$	38,143	$	41,221	$	42,073	$	75,307	$	101,215

Net income (GAAP)	$	39,678	$	33,547	$	37,054	$	40,063	$	40,867	$	73,225	$	98,775
Merger and conversion expense	—		687		—		—		—		687		—
Debt prepayment penalties	—		—		6,123		—		—		—		—
Swap termination gain	—		—		(4,676)		—		—		—		—
MSR valuation adjustment	—		—		—		—		—		—		(13,561)
Restructuring charges (benefit)	1,187		(455)		61		—		15		732		307

COVID-19 related expenses(1)	—		—		33		323		370		—		1,155
Tax effect of adjustments noted above(2)	(264)		(51)		(363)		(71)		(83)		(315)		2,687
Adjusted net income (non-GAAP)	$	40,601	$	33,728	$	38,232	$	40,315	$	41,169	$	74,329	$	89,363
Amortization of intangibles	1,310		1,366		1,424		1,481		1,539		2,676		3,137
Tax effect of adjustments noted above(2)	(291)		(303)		(335)		(323)		(333)		(594)		(697)
Adjusted tangible net income (non-GAAP)	$	41,620	$	34,791	$	39,321	$	41,473	$	42,375	$	76,411	$	91,803

Tangible Assets and Tangible Shareholders’ Equity
Average shareholders’ equity (GAAP)	$	2,177,537	$	2,249,667	$	2,231,681	$	2,219,431	$	2,213,743	$	2,213,424	$	2,193,084
Average intangible assets	968,441		965,430		964,575		965,960		967,430		966,956		968,215
Average tangible shareholders’ equity (non-GAAP)	$	1,209,096	$	1,284,237	$	1,267,106	$	1,253,471	$	1,246,313	$	1,246,468	$	1,224,869

Average assets (GAAP)	$	16,631,290	$	16,697,264	$	16,450,640	$	16,130,149	$	15,831,018	$	16,664,480	$	15,517,354
Average intangible assets	968,441		965,430		964,575		965,960		967,430		966,956		968,215
Average tangible assets (non-GAAP)	$	15,662,849	$	15,731,834	$	15,486,065	$	15,164,189	$	14,863,588	$	15,697,524	$	14,549,139

Shareholders’ equity (GAAP)	$	2,116,877	$	2,137,642	$	2,209,853	$	2,203,944	$	2,203,807	$	2,116,877	$	2,203,807
Intangible assets	967,713		969,022		963,781		965,205		966,686		967,713		966,686
Tangible shareholders’ equity (non-GAAP)	$	1,149,164	$	1,168,620	$	1,246,072	$	1,238,739	$	1,237,121	$	1,149,164	$	1,237,121

Total assets (GAAP)	$	16,618,101	$	16,863,757	$	16,810,311	$	16,155,550	$	16,022,386	$	16,618,101	$	16,022,386
Intangible assets	967,713		969,022		963,781		965,205		966,686		967,713		966,686
Total tangible assets (non-GAAP)	$	15,650,388	$	15,894,735	$	15,846,530	$	15,190,345	$	15,055,700	$	15,650,388	$	15,055,700


(Dollars in thousands, except per share data)	Three Months Ended															Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
Adjusted Performance Ratios
Return on average assets (GAAP)	0.96		%	0.81		%	0.89		%	0.99		%	1.04		%	0.89		%	1.28		%
Adjusted return on average assets (non-GAAP)	0.98		%	0.82		%	0.92		%	0.99		%	1.04		%	0.90		%	1.16		%
Return on average tangible assets (non-GAAP)	1.04		%	0.89		%	0.98		%	1.08		%	1.14		%	0.97		%	1.40		%
Adjusted pre-provision net revenue to average assets (non-GAAP)	1.31		%	1.04		%	1.19		%	1.23		%	1.24		%	1.17		%	1.44		%
Adjusted return on average tangible assets (non-GAAP)	1.07		%	0.90		%	1.01		%	1.09		%	1.14		%	0.98		%	1.27		%
Return on average equity (GAAP)	7.31		%	6.05		%	6.59		%	7.16		%	7.40		%	6.67		%	9.08		%
Adjusted return on average equity (non-GAAP)	7.48		%	6.08		%	6.80		%	7.21		%	7.46		%	6.77		%	8.22		%
Return on average tangible equity (non-GAAP)	13.50		%	10.93		%	11.94		%	13.05		%	13.54		%	12.18		%	16.66		%
Adjusted return on average tangible equity (non-GAAP)	13.81		%	10.99		%	12.31		%	13.13		%	13.64		%	12.36		%	15.11		%

Adjusted Diluted Earnings Per Share
Average diluted shares outstanding	56,182,845			56,081,863			56,105,050			56,447,184			56,635,898			56,130,762			56,578,580

Diluted earnings per share (GAAP)	$	0.71		$	0.60		$	0.66		$	0.71		$	0.72		$	1.30		$	1.75
Adjusted diluted earnings per share (non-GAAP)	$	0.72		$	0.60		$	0.68		$	0.71		$	0.73		$	1.32		$	1.58

Tangible Book Value Per Share
Shares outstanding	55,932,017			55,880,666			55,756,233			55,747,407			56,350,878			55,932,017			56,350,878

Book value per share (GAAP)	$	37.85		$	38.25		$	39.63		$	39.53		$	39.11		$	37.85		$	39.11
Tangible book value per share (non-GAAP)	$	20.55		$	20.91		$	22.35		$	22.22		$	21.95		$	20.55		$	21.95

Tangible Common Equity Ratio
Shareholders' equity to assets (GAAP)	12.74		%	12.68		%	13.15		%	13.64		%	13.75		%	12.74		%	13.75		%
Tangible common equity ratio (non-GAAP)	7.34		%	7.35		%	7.86		%	8.15		%	8.22		%	7.34		%	8.22		%

Adjusted Efficiency Ratio
Net interest income (FTE) (GAAP)	115,321			101,383			103,249			105,002			111,205			216,704			222,469

Total noninterest income (GAAP)	37,214			37,458			47,582			50,755			47,610			74,672			128,647
MSR valuation adjustment	—			—			—			—			—			—			13,561
Swap termination gains	—			—			4,676			—			—			—			—
Securities gains	—			—			49			764			—			—			1,357
Total adjusted noninterest income (non-GAAP)	37,214			37,458			42,857			49,991			47,610			74,672			113,729

Noninterest expense (GAAP)	98,194			94,105			101,115			103,999			108,777			192,299			224,712
Amortization of intangibles	1,310			1,366			1,424			1,481			1,539			2,676			3,137
Merger and conversion expense	—			687			—			—			—			687			—
Debt prepayment penalty	—			—			6,123			—			—			—			—

Restructuring charges (benefit)	1,187			(455)			61			—			15			732			307
Provision (recovery) of unfunded commitments	450			(550)			(300)			(200)			—			(100)			—
COVID-19 related expenses(1)	—			—			33			323			370			—			1,155
Total adjusted noninterest expense (non-GAAP)	95,247			93,057			93,774			102,395			106,853			188,304			220,113

Efficiency ratio (GAAP)	64.37		%	67.78		%	67.04		%	66.77		%	68.49		%	66.00		%	64.00		%
Adjusted efficiency ratio (non-GAAP)	62.44		%	67.02		%	64.18		%	66.06		%	67.28		%	64.63		%	65.47		%


(Dollars in thousands, except per share data)	Three Months Ended															Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
Core Net Interest Income and Core Net Interest Margin
Net interest income (FTE) (GAAP)	$	115,321		$	101,383		$	103,249		$	105,002		$	111,205		$	216,704		$	222,469
Net interest income collected on problem loans	2,276			434			577			316			1,339			2,710			3,519
Accretion recognized on purchased loans	2,021			1,235			2,187			2,871			2,638			3,256			5,726
Interest income recognized on PPP loans	74			619			485			3,503			10,120			693			20,807
Core net interest income (FTE) (non-GAAP)	$	110,950		$	99,095		$	99,999		$	98,312		$	97,108		$	210,045		$	192,417

Average earning assets (GAAP)	$	14,845,199		$	14,841,146		$	14,607,716		$	14,256,421		$	13,989,264		$	14,843,711		$	13,673,971
Average PPP loans	7,863			39,506			62,726			126,870			628,462			23,592			807,012
Average earning assets excluding PPP loans (non-GAAP)	$	14,837,336		$	14,801,640		$	14,544,990		$	14,129,551		$	13,360,802		$	14,820,119		$	12,866,959

Net interest margin (GAAP)	3.11		%	2.76		%	2.81		%	2.93		%	3.19		%	2.94		%	3.28		%
Core net interest margin (non-GAAP)	3.00		%	2.71		%	2.73		%	2.76		%	2.92		%	2.86		%	3.02		%

Core Loan Yield
Loan interest income (FTE) (GAAP)	$	107,612		$	97,001		$	99,670		$	103,769		$	110,785		$	204,613		$	223,856
Net interest income collected on problem loans	2,276			434			578			316			1,339			2,710			3,519
Accretion recognized on purchased loans	2,021			1,235			2,187			2,871			2,638			3,256			5,726
Interest income recognized on PPP loans	74			619			485			3,503			10,120			693			20,807
Core loan interest income (FTE) (non-GAAP)	$	103,241		$	94,713		$	96,420		$	97,079		$	96,688		$	197,954		$	193,804

Average loans (GAAP)	$	10,477,036		$	10,108,511		$	9,948,610		$	10,017,742		$	10,478,121		$	10,293,949		$	10,640,556
Average PPP loans	7,863			39,506			62,726			126,870			628,462			23,592			807,012
Average loans excluding PPP loans (non-GAAP)	$	10,469,173		$	10,069,005		$	9,885,884		$	9,890,872		$	9,849,659		$	10,270,357		$	9,833,544

Loan yield (GAAP)	4.12		%	3.88		%	3.98		%	4.11		%	4.24		%	4.00		%	4.24		%
Core loan yield (non-GAAP)	3.96		%	3.82		%	3.87		%	3.89		%	3.94		%	3.89		%	3.97		%

Adjusted Asset Quality Ratios
Total loans (GAAP)	$	10,603,744		$	10,313,459		$	10,020,914		$	10,016,824		$	10,149,242		$	10,603,744		$	10,149,242
PPP loans	7,383			8,382			58,391			67,462			246,931			7,383			246,931
Total loans excluding PPP loans (non-GAAP)	$	10,596,361		$	10,305,077		$	9,962,523		$	9,949,362		$	9,902,311		$	10,596,361		$	9,902,311

Loans 30-89 days past due	$	16,910		$	30,617		$	27,604		$	14,806		$	15,077		$	16,910		$	15,077
Loans 30-89 days past due / total loans (GAAP)	0.16		%	0.30		%	0.28		%	0.15		%	0.15		%	0.16		%	0.15		%
Loans 30-89 days past due / total loans excluding PPP loans (non-GAAP)	0.16		%	0.30		%	0.28		%	0.15		%	0.15		%	0.16		%	0.15		%

Classified loans	$	185,267		$	178,015		$	160,790		$	187,223		$	206,724		$	185,267		$	206,724
Special Mention loans	87,476			76,949			115,496			138,497			125,507			87,476			125,507
Criticized loans(3)	$	272,743		$	254,964		$	276,286		$	325,720		$	332,231		$	272,743		$	332,231
Criticized loans / total loans (GAAP)	2.57		%	2.47		%	2.76		%	3.25		%	3.27		%	2.57		%	3.27		%
Criticized loans / total loans excluding PPP loans (non-GAAP)	2.57		%	2.47		%	2.77		%	3.27		%	3.36		%	2.57		%	3.36		%

Nonperforming loans	$	44,514		$	52,242		$	50,805		$	56,740		$	56,536		$	44,514		$	56,536
Nonperforming loans / total loans (GAAP)	0.42		%	0.51		%	0.51		%	0.57		%	0.56		%	0.42		%	0.56		%


(Dollars in thousands, except per share data)	Three Months Ended															Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
Nonperforming loans / total loans excluding PPP loans (non-GAAP)	0.42		%	0.51		%	0.51		%	0.57		%	0.57		%	0.42		%	0.57		%

Allowance for credit losses on loans	$	166,131		$	166,468		$	164,171		$	170,038		$	172,354		$	166,131		$	172,354
ACL / total loans (GAAP)	1.57		%	1.61		%	1.64		%	1.70		%	1.70		%	1.57		%	1.70		%
ACL / total loans excluding PPP loans (non-GAAP)	1.57		%	1.62		%	1.65		%	1.71		%	1.74		%	1.57		%	1.74		%


Average loans (GAAP)	$	10,477,036		$	10,108,511		$	9,948,610		$	10,017,742		$	10,478,121		$	10,293,949		$	10,640,556
Average PPP loans	7,863			39,506			62,726			126,870			628,462			23,592			807,012
Average loans excluding PPP loans (non-GAAP)	$	10,469,173		$	10,069,005		$	9,885,884		$	9,890,872		$	9,849,659		$	10,270,357		$	9,833,544

Net charge-offs	$	2,337		$	851		$	5,367		$	1,116		$	752		$	3,188		$	3,790
Annualized net charge-offs / average loans (GAAP)	0.09		%	0.03		%	0.21		%	0.04		%	0.03		%	0.06		%	0.07		%
Annualized net charge-offs / average loans excluding PPP loans (non-GAAP)	0.09		%	0.03		%	0.22		%	0.04		%	0.03		%	0.06		%	0.08		%

Total assets (GAAP)	$	16,618,101		$	16,863,757		$	16,810,311		$	16,155,550		$	16,022,386		$	16,618,101		$	16,022,386
PPP loans	7,383			8,382			58,391			67,462			246,931			7,383			246,931
Total assets excluding PPP loans (non-GAAP)	$	16,610,718		$	16,855,375		$	16,751,920		$	16,088,088		$	15,775,455		$	16,610,718		$	15,775,455

Nonperforming assets	$	47,321		$	54,304		$	53,345		$	61,445		$	61,475		$	47,321		$	61,475
Nonperforming assets / total assets (GAAP)	0.28		%	0.32		%	0.32		%	0.38		%	0.38		%	0.28		%	0.38		%
Nonperforming assets / total assets excluding PPP loans (non-GAAP)	0.28		%	0.32		%	0.32		%	0.38		%	0.39		%	0.28		%	0.39		%

(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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