EX-99.1 2 exhibit991_rnstx4q2022earn.htm EX-99.1

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 FOURTH QUARTER OF 2022
TUPELO, MISSISSIPPI (January 24, 2023) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the fourth quarter of 2022.

(Dollars in thousands, except earnings per share) | Three Months Ended |  | Twelve Months Ended
| Dec 31, 2022 | Sep 30, 2022 | Dec 31, 2021 |  | Dec 31, 2022 | Dec 31, 2021
Net income and earnings per share: |  |  |  |  |  |
Net income | $46,276 | $46,567 | $37,054 |  | $166,068 | $175,892
Basic EPS | 0.83 | 0.83 | 0.66 |  | 2.97 | 3.13
Diluted EPS | 0.82 | 0.83 | 0.66 |  | 2.95 | 3.12
Adjusted diluted EPS (Non-GAAP)(1) | 0.89 | 0.79 | 0.68 |  | 3.00 | 2.98

“We are pleased to report a solid fourth quarter with quarterly earnings growing over the prior year,” remarked C. Mitchell Waycaster, Renasant President and Chief Executive Officer. “The company continues to emphasize the importance of core deposits, asset quality and capital strength in managing our balance sheet. We recently completed the acquisition of Republic Business Credit and are excited to welcome that team to Renasant.”
Quarterly Highlights
Acquisition
•The Company completed the acquisition of Republic Business Credit, a factoring and asset-based lending company headquartered in New Orleans, Louisiana (“RBC”), on December 30, 2022. The RBC acquisition added $77.5 million in loans on the date of acquisition, and the Company recorded a provision for credit losses of $2.6 million, a provision for unfunded commitments of $0.2 million and merger expenses of $1.1 million
Earnings
•Net income for the fourth quarter of 2022 was $46.3 million with diluted EPS of $0.82 and adjusted diluted EPS (non-GAAP)(1) of $0.89
•Net interest income (fully tax equivalent) for the fourth quarter of 2022 was $140.6 million, up $8.1 million on a linked quarter basis
•For the fourth quarter of 2022, net interest margin was 3.78%, up 24 basis points on a linked quarter basis
1

•Cost of total deposits was 52 basis points for the fourth quarter of 2022, up 31 basis points on a linked quarter basis
•The Company’s wealth management and insurance lines of business produced steady results during the fourth quarter of 2022
•The mortgage division generated $0.5 billion in interest rate lock volume during the fourth quarter of 2022, compared to $0.6 billion in the third quarter of 2022. Gain on sale margin was 1.64% for the fourth quarter of 2022, up 61 basis points on a linked quarter basis. The Company recognized a gain on the sale of mortgage servicing rights of $3.0 million in the third quarter. No such sales occurred in the fourth quarter
•Fourth quarter noninterest expense remained relatively unchanged on a linked quarter basis. In addition to expenses incurred in connection with the RBC acquisition, the Company recorded $1.3 million in expense related to the voluntary reimbursement of certain re-presentment NSF fees previously charged to customers that the Company expects to make in 2023 in light of the FDIC’s recent guidance to banks regarding such fees. The efficiency ratio and adjusted efficiency ratio (non-GAAP)(1) for the fourth quarter was 58.4% and 56.3%, respectively
Balance Sheet
•Loans increased $473.3 million during the fourth quarter of 2022 from September 30, 2022; excluding RBC acquired loans, loans increased $395.8 million, which represents 14.14% annualized net loan growth
•The securities portfolio decreased $64.8 million during the fourth quarter of 2022 from September 30, 2022, due to net cash outflows during the quarter of $75.4 million and a positive fair market value adjustment in our available-for-sale portfolio of $10.6 million
•Deposits at December 31, 2022 increased $54.8 million from September 30, 2022, driven by an increase in interest bearing deposits. Noninterest bearing deposits decreased $268.5 million from September 30, 2022 to December 31, 2022 and represented 33.8% of total deposits at December 31, 2022. Brokered deposits were $233.1 million at December 31, 2022
Capital
•Book value per share and tangible book value per share (non-GAAP)(1) increased 2.1% and decreased 0.5%, respectively, on a linked quarter basis
•The Company has a $100 million stock repurchase program that is in effect through October 2023; there was no buyback activity during the fourth quarter of 2022
Credit Quality
•The Company recorded a provision for credit losses on loans of $10.5 million for the fourth quarter of 2022, primarily driven by loan growth and the aforementioned provision with respect to acquired RBC loans
•The allowance for credit losses on loans to total loans increased nine basis points on a linked quarter basis to 1.66% at December 31, 2022; an allowance of $9.8 million was recorded for RBC loans that had experienced credit deterioration prior to acquisition
•The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 337.73% at December 31, 2022, compared to 312.10% at September 30, 2022
•Net loan charge-offs for the fourth quarter of 2022 were $2.6 million, or 0.09% of average loans on an annualized basis
•Credit metrics remained stable. Nonperforming loans to total loans decreased to 0.49% at December 31, 2022 compared to 0.50% at September 30, 2022 and criticized loans (which include classified and special mention loans) to total loans increased to 2.47% at December 31, 2022, compared to 2.37% at September 30, 2022
(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.
2

Income Statement

(Dollars in thousands, except per share data) | Three Months Ended |  | Twelve Months Ended
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 |  | Dec 31, 2022 | Dec 31, 2021
Interest income |  |  |  |  |  |  |  |
Loans held for investment | $ | 145,360 |  | $ | 123,100 |  | $ | 106,409 |  | $ | 95,829 |  | $ | 98,478 |  |  | $ | 470,698 |  | $ | 422,832 |
Loans held for sale | 1,688 |  | 2,075 |  | 2,586 |  | 2,863 |  | 3,652 |  |  | 9,212 |  | 12,632 |
Securities | 15,241 |  | 14,500 |  | 12,471 |  | 10,835 |  | 9,221 |  |  | 53,047 |  | 31,532 |
Other | 2,777 |  | 3,458 |  | 1,954 |  | 664 |  | 568 |  |  | 8,853 |  | 1,689 |
Total interest income | 165,066 |  | 143,133 |  | 123,420 |  | 110,191 |  | 111,919 |  |  | 541,810 |  | 468,685 |
Interest expense |  |  |  |  |  |  |  |
Deposits | 17,312 |  | 7,241 |  | 5,018 |  | 5,637 |  | 6,056 |  |  | 35,208 |  | 28,976 |
Borrowings | 9,918 |  | 5,574 |  | 4,887 |  | 4,925 |  | 4,381 |  |  | 25,304 |  | 15,708 |
Total interest expense | 27,230 |  | 12,815 |  | 9,905 |  | 10,562 |  | 10,437 |  |  | 60,512 |  | 44,684 |
Net interest income | 137,836 |  | 130,318 |  | 113,515 |  | 99,629 |  | 101,482 |  |  | 481,298 |  | 424,001 |
Provision for (recovery of) credit losses |  |  |  |  |  |  |  |
Provision for (recovery of) loan losses | 10,488 |  | 9,800 |  | 2,000 |  | 1,500 |  | (500) |  |  | 23,788 |  | (1,700) |
Provision for credit losses on HTM securities | — |  | — |  | — |  | — |  | 32 |  |  | — |  | 32 |
Total provision for (recovery of) loan losses | 10,488 |  | 9,800 |  | 2,000 |  | 1,500 |  | (468) |  |  | 23,788 |  | (1,668) |
Net interest income after provision for (recovery of) credit losses | 127,348 |  | 120,518 |  | 111,515 |  | 98,129 |  | 101,950 |  |  | 457,510 |  | 425,669 |
Noninterest income | 33,395 |  | 41,186 |  | 37,214 |  | 37,458 |  | 47,582 |  |  | 149,253 |  | 226,984 |
Noninterest expense | 101,582 |  | 101,574 |  | 98,194 |  | 94,105 |  | 101,115 |  |  | 395,455 |  | 429,826 |
Income before income taxes | 59,161 |  | 60,130 |  | 50,535 |  | 41,482 |  | 48,417 |  |  | 211,308 |  | 222,827 |
Income taxes | 12,885 |  | 13,563 |  | 10,857 |  | 7,935 |  | 11,363 |  |  | 45,240 |  | 46,935 |
Net income | $ | 46,276 |  | $ | 46,567 |  | $ | 39,678 |  | $ | 33,547 |  | $ | 37,054 |  |  | $ | 166,068 |  | $ | 175,892 |
Adjusted net income (non-GAAP)(1) | $ | 50,324 |  | $ | 44,233 |  | $ | 40,601 |  | $ | 33,728 |  | $ | 38,232 |  |  | $ | 168,886 |  | $ | 167,951 |
Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1) | $ | 72,187 |  | $ | 66,970 |  | $ | 54,172 |  | $ | 42,664 |  | $ | 49,190 |  |  | $ | 235,993 |  | $ | 210,424 |
Basic earnings per share | $ | 0.83 |  | $ | 0.83 |  | $ | 0.71 |  | $ | 0.60 |  | $ | 0.66 |  |  | $ | 2.97 |  | $ | 3.13 |
Diluted earnings per share | 0.82 |  | 0.83 |  | 0.71 |  | 0.60 |  | 0.66 |  |  | 2.95 |  | 3.12 |
Adjusted diluted earnings per share (non-GAAP)(1) | 0.89 |  | 0.79 |  | 0.72 |  | 0.60 |  | 0.68 |  |  | 3.00 |  | 2.98 |
Average basic shares outstanding | 55,953,104 |  | 55,947,214 |  | 55,906,755 |  | 55,809,192 |  | 55,751,487 |  |  | 55,904,579 |  | 56,114,666 |
Average diluted shares outstanding | 56,335,446 |  | 56,248,720 |  | 56,182,845 |  | 56,081,863 |  | 56,105,050 |  |  | 56,214,230 |  | 56,424,484 |
Cash dividends per common share | $ | 0.22 |  | $ | 0.22 |  | $ | 0.22 |  | $ | 0.22 |  | $ | 0.22 |  |  | $ | 0.88 |  | $ | 0.88 |

(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.
3

Performance Ratios

| Three Months Ended |  | Twelve Months Ended
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 |  | Dec 31, 2022 | Dec 31, 2021
Return on average assets | 1.11 | % | 1.11 | % | 0.96 | % | 0.81 | % | 0.89 | % |  | 1.00 | % | 1.11 | %
Adjusted return on average assets (non-GAAP)(1) | 1.20 |  | 1.05 |  | 0.98 |  | 0.82 |  | 0.92 |  |  | 1.02 |  | 1.06 |
Return on average tangible assets (non-GAAP)(1) | 1.20 |  | 1.20 |  | 1.04 |  | 0.89 |  | 0.98 |  |  | 1.09 |  | 1.21 |
Adjusted return on average tangible assets (non-GAAP)(1) | 1.30 |  | 1.14 |  | 1.07 |  | 0.90 |  | 1.01 |  |  | 1.10 |  | 1.16 |
Return on average equity | 8.58 |  | 8.50 |  | 7.31 |  | 6.05 |  | 6.59 |  |  | 7.60 |  | 7.96 |
Adjusted return on average equity (non-GAAP)(1) | 9.33 |  | 8.07 |  | 7.48 |  | 6.08 |  | 6.80 |  |  | 7.73 |  | 7.60 |
Return on average tangible equity (non-GAAP)(1) | 15.98 |  | 15.64 |  | 13.50 |  | 10.93 |  | 11.94 |  |  | 13.97 |  | 14.53 |
Adjusted return on average tangible equity (non-GAAP)(1) | 17.35 |  | 14.87 |  | 13.81 |  | 10.99 |  | 12.31 |  |  | 14.20 |  | 13.89 |
Efficiency ratio (fully taxable equivalent) | 58.39 |  | 58.50 |  | 64.37 |  | 67.78 |  | 67.04 |  |  | 61.89 |  | 65.35 |
Adjusted efficiency ratio (non-GAAP)(1) | 56.25 |  | 58.78 |  | 62.44 |  | 67.02 |  | 64.18 |  |  | 60.77 |  | 65.32 |
Dividend payout ratio | 26.51 |  | 26.51 |  | 30.99 |  | 36.67 |  | 33.33 |  |  | 29.63 |  | 28.12 |

Capital and Balance Sheet Ratios

| As of
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021
Shares outstanding | 55,953,104 |  | 55,953,104 |  | 55,932,017 |  | 55,880,666 |  | 55,756,233 |
Market value per share | $ | 37.59 |  | $ | 31.28 |  | $ | 28.81 |  | $ | 33.45 |  | $ | 37.95 |
Book value per share | 38.18 |  | 37.39 |  | 37.85 |  | 38.25 |  | 39.63 |
Tangible book value per share (non-GAAP)(1) | 20.02 |  | 20.12 |  | 20.55 |  | 20.91 |  | 22.35 |
Shareholders’ equity to assets | 12.57 | % | 12.70 | % | 12.74 | % | 12.68 | % | 13.15 | %
Tangible common equity ratio (non-GAAP)(1) | 7.01 |  | 7.26 |  | 7.34 |  | 7.35 |  | 7.86 |
Leverage ratio | 9.36 |  | 9.39 |  | 9.16 |  | 9.00 |  | 9.15 |
Common equity tier 1 capital ratio | 10.21 |  | 10.64 |  | 10.74 |  | 10.78 |  | 11.18 |
Tier 1 risk-based capital ratio | 11.01 |  | 11.47 |  | 11.60 |  | 11.67 |  | 12.10 |
Total risk-based capital ratio | 14.63 |  | 15.15 |  | 15.34 |  | 15.51 |  | 16.14 |

(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.
4

Noninterest Income and Noninterest Expense

(Dollars in thousands) | Three Months Ended |  | Twelve Months Ended
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 |  | Dec 31, 2022 | Dec 31, 2021
Noninterest income |  |  |  |  |  |  |  |
Service charges on deposit accounts | $ | 10,445 |  | $ | 10,216 |  | $ | 9,734 |  | $ | 9,562 |  | $ | 9,751 |  |  | $ | 39,957 |  | $ | 36,569 |
Fees and commissions | 4,470 |  | 4,148 |  | 4,668 |  | 3,982 |  | 3,885 |  |  | 17,268 |  | 15,732 |
Insurance commissions | 2,501 |  | 3,108 |  | 2,591 |  | 2,554 |  | 2,353 |  |  | 10,754 |  | 9,841 |
Wealth management revenue | 5,237 |  | 5,467 |  | 5,711 |  | 5,924 |  | 5,273 |  |  | 22,339 |  | 20,455 |
Mortgage banking income | 5,170 |  | 12,675 |  | 8,316 |  | 9,633 |  | 14,726 |  |  | 35,794 |  | 109,604 |
Swap termination gains | — |  | — |  | — |  | — |  | 4,676 |  |  | — |  | 4,676 |
Net gains on sales of securities | — |  | — |  | — |  | — |  | 49 |  |  | — |  | 2,170 |
BOLI income | 2,487 |  | 2,296 |  | 2,331 |  | 2,153 |  | 2,048 |  |  | 9,267 |  | 7,366 |
Other | 3,085 |  | 3,276 |  | 3,863 |  | 3,650 |  | 4,821 |  |  | 13,874 |  | 20,571 |
Total noninterest income | $ | 33,395 |  | $ | 41,186 |  | $ | 37,214 |  | $ | 37,458 |  | $ | 47,582 |  |  | $ | 149,253 |  | $ | 226,984 |
Noninterest expense |  |  |  |  |  |  |  |
Salaries and employee benefits | $ | 67,372 |  | $ | 66,463 |  | $ | 65,580 |  | $ | 62,239 |  | $ | 62,523 |  |  | $ | 261,654 |  | $ | 280,627 |
Data processing | 3,521 |  | 3,526 |  | 3,590 |  | 4,263 |  | 5,346 |  |  | 14,900 |  | 21,726 |
Net occupancy and equipment | 11,122 |  | 11,266 |  | 11,155 |  | 11,276 |  | 11,177 |  |  | 44,819 |  | 46,837 |
Other real estate owned | (59) |  | 34 |  | (187) |  | (241) |  | (60) |  |  | (453) |  | 253 |
Professional fees | 2,856 |  | 3,087 |  | 2,778 |  | 3,151 |  | 3,209 |  |  | 11,872 |  | 11,776 |
Advertising and public relations | 3,631 |  | 3,229 |  | 3,406 |  | 4,059 |  | 2,929 |  |  | 14,325 |  | 12,203 |
Intangible amortization | 1,195 |  | 1,251 |  | 1,310 |  | 1,366 |  | 1,424 |  |  | 5,122 |  | 6,042 |
Communications | 2,028 |  | 1,999 |  | 1,904 |  | 2,027 |  | 2,088 |  |  | 7,958 |  | 8,869 |
Merger and conversion related expenses | 1,100 |  | — |  | — |  | 687 |  | — |  |  | 1,787 |  | — |
Restructuring charges (benefit) | — |  | — |  | 1,187 |  | (455) |  | 61 |  |  | 732 |  | 368 |
Debt prepayment penalty | — |  | — |  | — |  | — |  | 6,123 |  |  | — |  | 6,123 |
Other | 8,816 |  | 10,719 |  | 7,471 |  | 5,733 |  | 6,295 |  |  | 32,739 |  | 35,002 |
Total noninterest expense | $ | 101,582 |  | $ | 101,574 |  | $ | 98,194 |  | $ | 94,105 |  | $ | 101,115 |  |  | $ | 395,455 |  | $ | 429,826 |

Mortgage Banking Income

(Dollars in thousands) | Three Months Ended |  | Twelve Months Ended
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 |  | Dec 31, 2022 | Dec 31, 2021
Gain on sales of loans, net | $ | 1,003 |  | $ | 5,263 |  | $ | 3,490 |  | $ | 6,047 |  | $ | 10,801 |  |  | $ | 15,803 |  | $ | 82,399 |
Fees, net | 1,849 |  | 2,405 |  | 3,064 |  | 3,053 |  | 4,320 |  |  | 10,371 |  | 17,161 |
Mortgage servicing income (loss), net | 2,318 |  | 5,007 |  | 1,762 |  | 533 |  | (395) |  |  | 9,620 |  | (3,517) |
MSR valuation adjustment | — |  | — |  | — |  | — |  | — |  |  | — |  | 13,561 |
Total mortgage banking income | $ | 5,170 |  | $ | 12,675 |  | $ | 8,316 |  | $ | 9,633 |  | $ | 14,726 |  |  | $ | 35,794 |  | $ | 109,604 |

5

Balance Sheet

(Dollars in thousands) | As of
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021
Assets |  |  |  |  |
Cash and cash equivalents | $ | 575,992 |  | $ | 479,500 |  | $ | 1,010,468 |  | $ | 1,607,493 |  | $ | 1,877,965 |
Securities held to maturity, at amortized cost | 1,324,040 |  | 1,353,502 |  | 488,851 |  | 487,194 |  | 416,357 |
Securities available for sale, at fair value | 1,533,942 |  | 1,569,242 |  | 2,528,253 |  | 2,405,316 |  | 2,386,052 |
Loans held for sale, at fair value | 110,105 |  | 144,642 |  | 196,598 |  | 280,464 |  | 453,533 |
Loans held for investment | 11,578,304 |  | 11,105,004 |  | 10,603,744 |  | 10,313,459 |  | 10,020,914 |
Allowance for credit losses on loans | (192,090) |  | (174,356) |  | (166,131) |  | (166,468) |  | (164,171) |
Loans, net | 11,386,214 |  | 10,930,648 |  | 10,437,613 |  | 10,146,991 |  | 9,856,743 |
Premises and equipment, net | 283,595 |  | 284,062 |  | 284,035 |  | 285,344 |  | 293,122 |
Other real estate owned | 1,763 |  | 2,412 |  | 2,807 |  | 2,062 |  | 2,540 |
Goodwill and other intangibles | 1,015,884 |  | 966,461 |  | 967,713 |  | 969,022 |  | 963,781 |
Bank-owned life insurance | 373,808 |  | 371,650 |  | 371,298 |  | 369,344 |  | 287,359 |
Mortgage servicing rights | 84,448 |  | 81,980 |  | 94,743 |  | 91,730 |  | 89,018 |
Other assets | 298,385 |  | 287,000 |  | 235,722 |  | 218,797 |  | 183,841 |
Total assets | $ | 16,988,176 |  | $ | 16,471,099 |  | $ | 16,618,101 |  | $ | 16,863,757 |  | $ | 16,810,311 |
Liabilities and Shareholders’ Equity |  |  |  |  |
Liabilities |  |  |  |  |
Deposits: |  |  |  |  |
Noninterest-bearing | $ | 4,558,756 |  | $ | 4,827,220 |  | $ | 4,741,397 |  | $ | 4,706,256 |  | $ | 4,718,124 |
Interest-bearing | 8,928,210 |  | 8,604,904 |  | 9,022,532 |  | 9,284,641 |  | 9,187,600 |
Total deposits | 13,486,966 |  | 13,432,124 |  | 13,763,929 |  | 13,990,897 |  | 13,905,724 |
Short-term borrowings | 712,232 |  | 312,818 |  | 112,642 |  | 111,279 |  | 13,947 |
Long-term debt | 428,133 |  | 426,821 |  | 431,553 |  | 435,416 |  | 471,209 |
Other liabilities | 224,829 |  | 207,055 |  | 193,100 |  | 188,523 |  | 209,578 |
Total liabilities | 14,852,160 |  | 14,378,818 |  | 14,501,224 |  | 14,726,115 |  | 14,600,458 |
Shareholders’ equity: |  |  |  |  |
Preferred stock | — |  | — |  | — |  | — |  | — |
Common stock | 296,483 |  | 296,483 |  | 296,483 |  | 296,483 |  | 296,483 |
Treasury stock | (111,577) |  | (111,577) |  | (112,295) |  | (114,050) |  | (118,027) |
Additional paid-in capital | 1,302,422 |  | 1,299,476 |  | 1,298,207 |  | 1,297,088 |  | 1,300,192 |
Retained earnings | 857,725 |  | 823,951 |  | 789,880 |  | 762,690 |  | 741,648 |
Accumulated other comprehensive loss | (209,037) |  | (216,052) |  | (155,398) |  | (104,569) |  | (10,443) |
Total shareholders’ equity | 2,136,016 |  | 2,092,281 |  | 2,116,877 |  | 2,137,642 |  | 2,209,853 |
Total liabilities and shareholders’ equity | $ | 16,988,176 |  | $ | 16,471,099 |  | $ | 16,618,101 |  | $ | 16,863,757 |  | $ | 16,810,311 |

6

Net Interest Income and Net Interest Margin

(Dollars in thousands) | Three Months Ended
| December 31, 2022 | September 30, 2022 | December 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: |  |  |  |  |  |  |  |  |
Loans held for investment | $ | 11,282,422 |  | $ | 147,519 |  | 5.19 | % | $ | 10,829,137 |  | $ | 124,614 |  | 4.57 | % | $ | 9,948,610 |  | $ | 99,670 |  | 3.98 | %
Loans held for sale | 117,082 |  | 1,688 |  | 5.77 | % | 143,837 |  | 2,075 |  | 5.77 | % | 498,724 |  | 3,652 |  | 2.93 | %
Taxable securities | 2,657,248 |  | 13,174 |  | 1.98 | % | 2,773,924 |  | 12,439 |  | 1.79 | % | 2,245,249 |  | 7,293 |  | 1.30 | %
Tax-exempt securities(1) | 447,287 |  | 2,637 |  | 2.36 | % | 449,927 |  | 2,664 |  | 2.37 | % | 392,700 |  | 2,503 |  | 2.55 | %
Total securities | 3,104,535 |  | 15,811 |  | 2.04 | % | 3,223,851 |  | 15,103 |  | 1.87 | % | 2,637,949 |  | 9,796 |  | 1.49 | %
Interest-bearing balances with banks | 269,975 |  | 2,777 |  | 4.08 | % | 663,218 |  | 3,458 |  | 2.07 | % | 1,522,433 |  | 568 |  | 0.15 | %
Total interest-earning assets | 14,774,014 |  | 167,795 |  | 4.51 | % | 14,860,043 |  | 145,250 |  | 3.89 | % | 14,607,716 |  | 113,686 |  | 3.09 | %
Cash and due from banks | 201,369 |  |  |  | 191,358 |  |  |  | 201,941 |  |  |
Intangible assets | 967,005 |  |  |  | 967,154 |  |  |  | 964,575 |  |  |
Other assets | 635,452 |  |  |  | 626,926 |  |  |  | 676,408 |  |  |
Total assets | $ | 16,577,840 |  |  |  | $ | 16,645,481 |  |  |  | $ | 16,450,640 |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |
Interest-bearing demand(2) | $ | 6,018,679 |  | $ | 12,534 |  | 0.83 | % | $ | 6,462,940 |  | $ | 6,061 |  | 0.37 | % | $ | 6,460,178 |  | $ | 3,487 |  | 0.21 | %
Savings deposits | 1,093,997 |  | 582 |  | 0.21 | % | 1,134,665 |  | 155 |  | 0.05 | % | 1,045,784 |  | 151 |  | 0.06 | %
Brokered deposits | 93,764 |  | 1,047 |  | 4.43 | % | — |  | — |  | — | % | — |  | — |  | — | %
Time deposits | 1,324,042 |  | 3,149 |  | 0.94 | % | 1,240,439 |  | 1,025 |  | 0.33 | % | 1,434,162 |  | 2,418 |  | 0.67 | %
Total interest-bearing deposits | 8,530,482 |  | 17,312 |  | 0.81 | % | 8,838,044 |  | 7,241 |  | 0.33 | % | 8,940,124 |  | 6,056 |  | 0.27 | %
Borrowed funds | 893,705 |  | 9,918 |  | 4.42 | % | 572,376 |  | 5,574 |  | 3.88 | % | 434,546 |  | 4,381 |  | 4.03 | %
Total interest-bearing liabilities | 9,424,187 |  | 27,230 |  | 1.15 | % | 9,410,420 |  | 12,815 |  | 0.54 | % | 9,374,670 |  | 10,437 |  | 0.44 | %
Noninterest-bearing deposits | 4,805,014 |  |  |  | 4,867,314 |  |  |  | 4,633,885 |  |  |
Other liabilities | 209,544 |  |  |  | 194,339 |  |  |  | 210,404 |  |  |
Shareholders’ equity | 2,139,095 |  |  |  | 2,173,408 |  |  |  | 2,231,681 |  |  |
Total liabilities and shareholders’ equity | $ | 16,577,840 |  |  |  | $ | 16,645,481 |  |  |  | $ | 16,450,640 |  |  |
Net interest income/ net interest margin |  | $ | 140,565 |  | 3.78 | % |  | $ | 132,435 |  | 3.54 | % |  | $ | 103,249 |  | 2.81 | %
Cost of funding |  |  | 0.76 | % |  |  | 0.36 | % |  |  | 0.30 | %
Cost of total deposits |  |  | 0.52 | % |  |  | 0.21 | % |  |  | 0.18 | %

(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.
7

Net Interest Income and Net Interest Margin, continued

(Dollars in thousands) | Twelve Months Ended
| December 31, 2022 | December 31, 2021
| Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate
Interest-earning assets: |  |  |  |  |  |
Loans held for investment | $ | 10,677,995 |  | $ | 476,746 |  | 4.46% | $ | 10,310,070 |  | $ | 427,296 |  | 4.15%
Loans held for sale | 203,981 |  | 9,212 |  | 4.52% | 454,727 |  | 12,632 |  | 2.78%
Taxable securities(1) | 2,654,621 |  | 44,750 |  | 1.69% | 1,691,531 |  | 24,370 |  | 1.44%
Tax-exempt securities | 446,895 |  | 10,655 |  | 2.38% | 335,399 |  | 9,418 |  | 2.81%
Total securities | 3,101,516 |  | 55,405 |  | 1.79% | 2,026,930 |  | 33,788 |  | 1.67%
Interest-bearing balances with banks | 846,768 |  | 8,853 |  | 1.05% | 1,263,364 |  | 1,688 |  | 0.13%
Total interest-earning assets | 14,830,260 |  | 550,216 |  | 3.71% | 14,055,091 |  | 475,404 |  | 3.38%
Cash and due from banks | 201,419 |  |  |  | 199,705 |  |  |
Intangible assets | 967,018 |  |  |  | 966,733 |  |  |
Other assets | 639,155 |  |  |  | 684,457 |  |  |
Total assets | $ | 16,637,852 |  |  |  | $ | 15,905,986 |  |  |
Interest-bearing liabilities: |  |  |  |  |  |
Interest-bearing demand(2) | $ | 6,420,905 |  | $ | 25,840 |  | 0.40% | $ | 6,177,944 |  | $ | 15,308 |  | 0.25%
Savings deposits | 1,116,013 |  | 1,023 |  | 0.09% | 976,616 |  | 698 |  | 0.07%
Brokered deposits | 23,634 |  | 1,047 |  | 4.43% | — |  | — |  | —%
Time deposits | 1,310,398 |  | 7,298 |  | 0.56% | 1,539,763 |  | 12,970 |  | 0.84%
Total interest-bearing deposits | 8,870,950 |  | 35,208 |  | 0.40% | 8,694,323 |  | 28,976 |  | 0.33%
Borrowed funds | 624,887 |  | 25,304 |  | 4.05% | 470,993 |  | 15,708 |  | 3.34%
Total interest-bearing liabilities | 9,495,837 |  | 60,512 |  | 0.64% | 9,165,316 |  | 44,684 |  | 0.49%
Noninterest-bearing deposits | 4,760,432 |  |  |  | 4,310,834 |  |  |
Other liabilities | 196,980 |  |  |  | 220,427 |  |  |
Shareholders’ equity | 2,184,603 |  |  |  | 2,209,409 |  |  |
Total liabilities and shareholders’ equity | $ | 16,637,852 |  |  |  | $ | 15,905,986 |  |  |
Net interest income/ net interest margin |  | $ | 489,704 |  | 3.30% |  | $ | 430,720 |  | 3.07%
Cost of funding |  |  | 0.42% |  |  | 0.33%
Cost of total deposits |  |  | 0.26% |  |  | 0.22%

(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.
8

Supplemental Margin Information

(Dollars in thousands) | Three Months Ended |  | Twelve Months Ended
| Dec 31, 2022 | Sep 30, 2022 | Dec 31, 2021 |  | Dec 31, 2022 | Dec 31, 2021
Earning asset mix: |  |  |  |  |  |
Loans held for investment, excluding Paycheck Protection Program (“PPP”) loans (non-GAAP)(1) | 76.33 | % | 72.83 | % | 67.68 | % |  | 71.90 | % | 70.16 | %
PPP loans | 0.03 |  | 0.04 |  | 0.43 |  |  | 0.10 |  | 3.19 |
Loans held for sale | 0.79 |  | 0.97 |  | 3.41 |  |  | 1.38 |  | 3.24 |
Securities | 21.01 |  | 21.69 |  | 18.06 |  |  | 20.91 |  | 14.42 |
Interest-bearing balances with banks | 1.84 |  | 4.47 |  | 10.42 |  |  | 5.71 |  | 8.99 |
Total | 100.00 | % | 100.00 | % | 100.00 | % |  | 100.00 | % | 100.00 | %
Funding sources mix: |  |  |  |  |  |
Noninterest-bearing demand | 33.77 | % | 34.09 | % | 33.08 | % |  | 33.39 | % | 32.00 | %
Interest-bearing demand | 42.30 |  | 45.27 |  | 46.11 |  |  | 45.04 |  | 45.84 |
Savings | 7.69 |  | 7.95 |  | 7.47 |  |  | 7.83 |  | 7.25 |
Brokered deposits | 0.66 |  | — |  | — |  |  | 0.17 |  | — |
Time deposits | 9.31 |  | 8.69 |  | 10.24 |  |  | 9.19 |  | 11.42 |
Borrowed funds | 6.27 |  | 4.00 |  | 3.10 |  |  | 4.38 |  | 3.49 |
Total | 100.00 | % | 100.00 | % | 100.00 | % |  | 100.00 | % | 100.00 | %
Net interest income collected on problem loans | $ | 161 |  | $ | 78 |  | $ | 578 |  |  | $ | 2,949 |  | $ | 4,412 |
Total accretion on purchased loans | 625 |  | 1,317 |  | 2,187 |  |  | 5,198 |  | 10,783 |
Total impact on net interest income | $ | 786 |  | $ | 1,395 |  | $ | 2,765 |  |  | $ | 8,147 |  | $ | 15,195 |
Impact on net interest margin | 0.02 | % | 0.04 | % | 0.08 | % |  | 0.05 | % | 0.11 | %
Impact on loan yield | 0.03 | % | 0.05 | % | 0.11 | % |  | 0.08 | % | 0.15 | %
Interest income on PPP loans | $ | 21 |  | $ | 5 |  | $ | 485 |  |  | $ | 719 |  | $ | 24,794 |
PPP impact on net interest margin | — | % | — | % | — | % |  | — | % | 0.08 | %
PPP impact on loan yield | — | % | — | % | — | % |  | — | % | 0.06 | %

(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.
9

Loan Portfolio

(Dollars in thousands) | As of
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021
Loan Portfolio: |  |  |  |  |
Commercial, financial, agricultural | $ | 1,669,051 |  | $ | 1,507,615 |  | $ | 1,489,889 |  | $ | 1,437,225 |  | $ | 1,364,879 |
Lease financing | 115,013 |  | 103,357 |  | 101,350 |  | 89,842 |  | 76,125 |
Real estate - construction | 1,330,337 |  | 1,215,056 |  | 1,126,363 |  | 1,222,052 |  | 1,104,896 |
Real estate - 1-4 family mortgages | 3,216,263 |  | 3,127,889 |  | 3,030,083 |  | 2,840,979 |  | 2,724,246 |
Real estate - commercial mortgages | 5,118,063 |  | 5,016,665 |  | 4,717,513 |  | 4,577,864 |  | 4,549,037 |
Installment loans to individuals | 124,745 |  | 128,946 |  | 131,163 |  | 137,115 |  | 143,340 |
Subtotal | 11,573,472 |  | 11,099,528 |  | 10,596,361 |  | 10,305,077 |  | 9,962,523 |
PPP loans | 4,832 |  | 5,476 |  | 7,383 |  | 8,382 |  | 58,391 |
Total loans | $ | 11,578,304 |  | $ | 11,105,004 |  | $ | 10,603,744 |  | $ | 10,313,459 |  | $ | 10,020,914 |

Credit Quality and Allowance for Credit Losses on Loans

(Dollars in thousands) | As of
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021
Nonperforming Assets: |  |  |  |  |
Nonaccruing loans | $ | 56,545 |  | $ | 54,278 |  | $ | 43,897 |  | $ | 51,995 |  | $ | 49,364 |
Loans 90 days or more past due | 331 |  | 1,587 |  | 617 |  | 247 |  | 1,441 |
Total nonperforming loans | 56,876 |  | 55,865 |  | 44,514 |  | 52,242 |  | 50,805 |
Other real estate owned | 1,763 |  | 2,412 |  | 2,807 |  | 2,062 |  | 2,540 |
Total nonperforming assets | 58,639 |  | 58,277 |  | 47,321 |  | 54,304 |  | 53,345 |
Allowance for credit losses on loans | $ | 192,090 |  | $ | 174,356 |  | $ | 166,131 |  | $ | 166,468 |  | $ | 164,171 |
Net loan charge-offs | $ | 2,566 |  | $ | 1,575 |  | $ | 2,337 |  | $ | 851 |  | $ | 5,367 |
Annualized net loan charge-offs / average loans | 0.09 | % | 0.06 | % | 0.09 | % | 0.03 | % | 0.21 | %
Nonperforming loans / total loans | 0.49 |  | 0.50 |  | 0.42 |  | 0.51 |  | 0.51 |
Nonperforming assets / total assets | 0.35 |  | 0.35 |  | 0.28 |  | 0.32 |  | 0.32 |
Allowance for credit losses on loans / total loans | 1.66 |  | 1.57 |  | 1.57 |  | 1.61 |  | 1.64 |
Allowance for credit losses on loans / nonperforming loans | 337.73 |  | 312.10 |  | 373.21 |  | 318.65 |  | 323.14 |

10

CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time (9:00 AM Central Time) on Wednesday, January 25, 2023.
The webcast is accessible through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=4MTPtQZd. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2022 Fourth 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 is accessible via telephone by dialing 1-877-344-7529 in the United States and entering conference number 8052042 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 8, 2023.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 119-year-old financial services institution. Renasant has assets of approximately $17.0 billion and operates 198 banking, lending, mortgage, wealth management and insurance 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, 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.
11

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) the tangible common equity ratio, (viii) loans held for investment excluding PPP loans, (ix) certain performance ratios (namely, the ratio of adjusted pre-provision net revenue to average assets, the adjusted return on average assets and on average equity, and the return on average tangible assets and on average tangible common equity (including 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 and expenses related to the voluntary reimbursement of certain re-presentment NSF fees) 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, 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, 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.
12

Non-GAAP Reconciliations

(Dollars in thousands, except per share data) | Three Months Ended |  | Twelve Months Ended
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 |  | Dec 31, 2022 | Dec 31, 2021
Adjusted Pre-Provision Net Revenue (“PPNR”) |  |  |  |  |  |
Net income (GAAP) | $ | 46,276 |  | $ | 46,567 |  | $ | 39,678 |  | $ | 33,547 |  | $ | 37,054 |  |  | $ | 166,068 |  | $ | 175,892 |
Income taxes | 12,885 |  | 13,563 |  | 10,857 |  | 7,935 |  | 11,363 |  |  | 45,240 |  | 46,935 |
Provision for (recovery of) credit losses (including unfunded commitments) | 10,671 |  | 9,800 |  | 2,450 |  | 950 |  | (768) |  |  | 23,871 |  | (2,168) |
Pre-provision net revenue (non-GAAP) | $ | 69,832 |  | $ | 69,930 |  | $ | 52,985 |  | $ | 42,432 |  | $ | 47,649 |  |  | $ | 235,179 |  | $ | 220,659 |
Merger and conversion expense | 1,100 |  | — |  | — |  | 687 |  | — |  |  | 1,787 |  | — |
Debt prepayment penalties | — |  | — |  | — |  | — |  | 6,123 |  |  | — |  | 6,123 |
Swap termination gains | — |  | — |  | — |  | — |  | (4,676) |  |  | — |  | (4,676) |
Gain on sale of MSR | — |  | (2,960) |  | — |  | — |  | — |  |  | (2,960) |  | — |
MSR valuation adjustment | — |  | — |  | — |  | — |  | — |  |  | — |  | (13,561) |
Restructuring charges (benefit) | — |  | — |  | 1,187 |  | (455) |  | 61 |  |  | 732 |  | 368 |
Voluntary reimbursement of certain re-presentment NSF fees | 1,255 |  | — |  | — |  | — |  | — |  |  | 1,255 |  | — |
COVID-19 related expenses(1) | — |  | — |  | — |  | — |  | 33 |  |  | — |  | 1,511 |
Adjusted pre-provision net revenue (non-GAAP) | $ | 72,187 |  | $ | 66,970 |  | $ | 54,172 |  | $ | 42,664 |  | $ | 49,190 |  |  | $ | 235,993 |  | $ | 210,424 |
Adjusted Net Income and Adjusted Tangible Net Income |  |  |  |  |  |
Net income (GAAP) | $ | 46,276 |  | $ | 46,567 |  | $ | 39,678 |  | $ | 33,547 |  | $ | 37,054 |  |  | $ | 166,068 |  | $ | 175,892 |
Amortization of intangibles | 1,195 |  | 1,251 |  | 1,310 |  | 1,366 |  | 1,424 |  |  | 5,122 |  | 6,042 |
Tax effect of adjustments noted above(2) | (260) |  | (265) |  | (291) |  | (303) |  | (335) |  |  | (1,119) |  | (1,354) |
Tangible net income (non-GAAP) | $ | 47,211 |  | $ | 47,553 |  | $ | 40,697 |  | $ | 34,610 |  | $ | 38,143 |  |  | $ | 170,071 |  | $ | 180,580 |
Net income (GAAP) | $ | 46,276 |  | $ | 46,567 |  | $ | 39,678 |  | $ | 33,547 |  | $ | 37,054 |  |  | $ | 166,068 |  | $ | 175,892 |
Merger and conversion expense | 1,100 |  | — |  | — |  | 687 |  | — |  |  | 1,787 |  | — |
Debt prepayment penalties | — |  | — |  | — |  | — |  | 6,123 |  |  | — |  | 6,123 |
Swap termination gain | — |  | — |  | — |  | — |  | (4,676) |  |  | — |  | (4,676) |
Gain on sale of MSR | — |  | (2,960) |  | — |  | — |  | — |  |  | (2,960) |  | — |
MSR valuation adjustment | — |  | — |  | — |  | — |  | — |  |  | — |  | (13,561) |
Restructuring charges (benefit) | — |  | — |  | 1,187 |  | (455) |  | 61 |  |  | 732 |  | 368 |
Initial provision for acquisitions | 2,820 |  | — |  | — |  | — |  | — |  |  | 2,820 |  | — |
Voluntary reimbursement of certain re-presentment NSF fees | 1,255 |  | — |  | — |  | — |  | — |  |  | 1,255 |  | — |
COVID-19 related expenses(1) | — |  | — |  | — |  | — |  | 33 |  |  | — |  | 1,511 |
Tax effect of adjustments noted above(2) | (1,127) |  | 626 |  | (264) |  | (51) |  | (363) |  |  | (816) |  | 2,294 |
Adjusted net income (non-GAAP) | $ | 50,324 |  | $ | 44,233 |  | $ | 40,601 |  | $ | 33,728 |  | $ | 38,232 |  |  | $ | 168,886 |  | $ | 167,951 |
Amortization of intangibles | 1,195 |  | 1,251 |  | 1,310 |  | 1,366 |  | 1,424 |  |  | 5,122 |  | 6,042 |
Tax effect of adjustments noted above(2) | (260) |  | (265) |  | (291) |  | (303) |  | (335) |  |  | (1,119) |  | (1,354) |
Adjusted tangible net income (non-GAAP) | $ | 51,259 |  | $ | 45,219 |  | $ | 41,620 |  | $ | 34,791 |  | $ | 39,321 |  |  | $ | 172,889 |  | $ | 172,639 |

13

(Dollars in thousands, except per share data) | Three Months Ended |  | Twelve Months Ended
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 |  | Dec 31, 2022 | Dec 31, 2021
Tangible Assets and Tangible Shareholders’ Equity |  |  |  |  |  |
Average shareholders’ equity (GAAP) | $ | 2,139,095 |  | $ | 2,173,408 |  | $ | 2,177,537 |  | $ | 2,249,667 |  | $ | 2,231,681 |  |  | $ | 2,184,603 |  | $ | 2,209,409 |
Average intangible assets | 967,005 |  | 967,154 | 968,441 | 965,430 | 964,575 |  | 967,018 | 966,733
Average tangible shareholders’ equity (non-GAAP) | $ | 1,172,090 |  | $ | 1,206,254 |  | $ | 1,209,096 |  | $ | 1,284,237 |  | $ | 1,267,106 |  |  | $ | 1,217,585 |  | $ | 1,242,676 |
Average assets (GAAP) | $ | 16,577,840 |  | $ | 16,645,481 |  | $ | 16,631,290 |  | $ | 16,697,264 |  | $ | 16,450,640 |  |  | $ | 16,637,852 |  | $ | 15,905,986 |
Average intangible assets | 967,005 |  | 967,154 | 968,441 | 965,430 | 964,575 |  | 967,018 | 966,733
Average tangible assets (non-GAAP) | $ | 15,610,835 |  | $ | 15,678,327 |  | $ | 15,662,849 |  | $ | 15,731,834 |  | $ | 15,486,065 |  |  | $ | 15,670,834 |  | $ | 14,939,253 |
Shareholders’ equity (GAAP) | $ | 2,136,016 |  | $ | 2,092,281 |  | $ | 2,116,877 |  | $ | 2,137,642 |  | $ | 2,209,853 |  |  | $ | 2,136,016 |  | $ | 2,209,853 |
Intangible assets | 1,015,884 |  | 966,461 |  | 967,713 |  | 969,022 |  | 963,781 |  |  | 1,015,884 |  | 963,781 |
Tangible shareholders’ equity (non-GAAP) | $ | 1,120,132 |  | $ | 1,125,820 |  | $ | 1,149,164 |  | $ | 1,168,620 |  | $ | 1,246,072 |  |  | $ | 1,120,132 |  | $ | 1,246,072 |
Total assets (GAAP) | $ | 16,988,176 |  | $ | 16,471,099 |  | $ | 16,618,101 |  | $ | 16,863,757 |  | $ | 16,810,311 |  |  | $ | 16,988,176 |  | $ | 16,810,311 |
Intangible assets | 1,015,884 |  | 966,461 |  | 967,713 |  | 969,022 |  | 963,781 |  |  | 1,015,884 |  | 963,781 |
Total tangible assets (non-GAAP) | $ | 15,972,292 |  | $ | 15,504,638 |  | $ | 15,650,388 |  | $ | 15,894,735 |  | $ | 15,846,530 |  |  | $ | 15,972,292 |  | $ | 15,846,530 |
Adjusted Performance Ratios |  |  |  |  |  |  |  |
Return on average assets (GAAP) | 1.11 | % | 1.11 | % | 0.96 | % | 0.81 | % | 0.89 | % |  | 1.00 | % | 1.11 | %
Adjusted return on average assets (non-GAAP) | 1.20 | % | 1.05 | % | 0.98 | % | 0.82 | % | 0.92 | % |  | 1.02 | % | 1.06 | %
Return on average tangible assets (non-GAAP) | 1.20 | % | 1.20 | % | 1.04 | % | 0.89 | % | 0.98 | % |  | 1.09 | % | 1.21 | %
Adjusted pre-provision net revenue to average assets (non-GAAP) | 1.73 | % | 1.60 | % | 1.31 | % | 1.04 | % | 1.19 | % |  | 1.42 | % | 1.32 | %
Adjusted return on average tangible assets (non-GAAP) | 1.30 | % | 1.14 | % | 1.07 | % | 0.90 | % | 1.01 | % |  | 1.10 | % | 1.16 | %
Return on average equity (GAAP) | 8.58 | % | 8.50 | % | 7.31 | % | 6.05 | % | 6.59 | % |  | 7.60 | % | 7.96 | %
Adjusted return on average equity (non-GAAP) | 9.33 | % | 8.07 | % | 7.48 | % | 6.08 | % | 6.80 | % |  | 7.73 | % | 7.60 | %
Return on average tangible equity (non-GAAP) | 15.98 | % | 15.64 | % | 13.50 | % | 10.93 | % | 11.94 | % |  | 13.97 | % | 14.53 | %
Adjusted return on average tangible equity (non-GAAP) | 17.35 | % | 14.87 | % | 13.81 | % | 10.99 | % | 12.31 | % |  | 14.20 | % | 13.89 | %
Adjusted Diluted Earnings Per Share |  |  |  |  |  |
Average diluted shares outstanding | 56,335,446 | 56,248,720 | 56,182,845 | 56,081,863 | 56,105,050 |  | 56,214,230 | 56,424,484
Diluted earnings per share (GAAP) | $ | 0.82 |  | $ | 0.83 |  | $ | 0.71 |  | $ | 0.60 |  | $ | 0.66 |  |  | $ | 2.95 |  | $ | 3.12 |
Adjusted diluted earnings per share (non-GAAP) | $ | 0.89 |  | $ | 0.79 |  | $ | 0.72 |  | $ | 0.60 |  | $ | 0.68 |  |  | $ | 3.00 |  | $ | 2.98 |
Tangible Book Value Per Share |  |  |  |  |  |  |  |
Shares outstanding | 55,953,104 | 55,953,104 | 55,932,017 | 55,880,666 | 55,756,233 |  | 55,953,104 | 55,756,233
Book value per share (GAAP) | $ | 38.18 |  | $ | 37.39 |  | $ | 37.85 |  | $ | 38.25 |  | $ | 39.63 |  |  | $ | 38.18 |  | $ | 39.63 |
Tangible book value per share (non-GAAP) | $ | 20.02 |  | $ | 20.12 |  | $ | 20.55 |  | $ | 20.91 |  | $ | 22.35 |  |  | $ | 20.02 |  | $ | 22.35 |
Tangible Common Equity Ratio |  |  |  |  |  |  |  |
Shareholders’ equity to assets (GAAP) | 12.57 | % | 12.70 | % | 12.74 | % | 12.68 | % | 13.15 | % |  | 12.57 | % | 13.15 | %
Tangible common equity ratio (non-GAAP) | 7.01 | % | 7.26 | % | 7.34 | % | 7.35 | % | 7.86 | % |  | 7.01 | % | 7.86 | %

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(Dollars in thousands, except per share data) | Three Months Ended |  | Twelve Months Ended
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 |  | Dec 31, 2022 | Dec 31, 2021
Adjusted Efficiency Ratio |  |  |  |  |  |  |  |
Net interest income (FTE) (GAAP) | $ | 140,565 |  | $ | 132,435 |  | $ | 115,321 |  | $ | 101,383 |  | $ | 103,249 |  |  | $ | 489,704 |  | $ | 430,720 |
Total noninterest income (GAAP) | $ | 33,395 |  | $ | 41,186 |  | $ | 37,214 |  | $ | 37,458 |  | $ | 47,582 |  |  | $ | 149,253 |  | $ | 226,984 |
MSR valuation adjustment | — |  | — |  | — |  | — |  | — |  |  | — |  | 13,561 |
Gain on sale of MSR | — |  | 2,960 |  | — |  | — |  | — |  |  | 2,960 |  | — |
Swap termination gains | — |  | — |  | — |  | — |  | 4,676 |  |  | — |  | 4,676 |
Securities gains | — |  | — |  | — |  | — |  | 49 |  |  | — |  | 2,170 |
Total adjusted noninterest income (non-GAAP) | $ | 33,395 |  | $ | 38,226 |  | $ | 37,214 |  | $ | 37,458 |  | $ | 42,857 |  |  | $ | 146,293 |  | $ | 206,577 |
Noninterest expense (GAAP) | $ | 101,582 |  | $ | 101,574 |  | $ | 98,194 |  | $ | 94,105 |  | $ | 101,115 |  |  | $ | 395,455 |  | $ | 429,826 |
Amortization of intangibles | 1,195 |  | 1,251 |  | 1,310 |  | 1,366 |  | 1,424 |  |  | 5,122 |  | 6,042 |
Merger and conversion expense | 1,100 |  | — |  | — |  | 687 |  | — |  |  | 1,787 |  | — |
Debt prepayment penalty | — |  | — |  | — |  | — |  | 6,123 |  |  | — |  | 6,123 |
Restructuring charges (benefit) | — |  | — |  | 1,187 |  | (455) |  | 61 |  |  | 732 |  | 368 |
Voluntary reimbursement of certain re-presentment NSF fees | 1,255 |  | — |  | — |  | — |  | — |  |  | 1,255 |  | — |
Provision (recovery) of unfunded commitments | 183 |  | — |  | 450 |  | (550) |  | (300) |  |  | 83 |  | (500) |
COVID-19 related expenses(1) | — |  | — |  | — |  | — |  | 33 |  |  | — |  | 1,511 |
Total adjusted noninterest expense (non-GAAP) | $ | 97,849 |  | $ | 100,323 |  | $ | 95,247 |  | $ | 93,057 |  | $ | 93,774 |  |  | $ | 386,476 |  | $ | 416,282 |
Efficiency ratio (GAAP) | 58.39 | % | 58.50 | % | 64.37 | % | 67.78 | % | 67.04 | % |  | 61.89 | % | 65.35 | %
Adjusted efficiency ratio (non-GAAP) | 56.25 | % | 58.78 | % | 62.44 | % | 67.02 | % | 64.18 | % |  | 60.77 | % | 65.32 | %
Core Net Interest Income and Core Net Interest Margin |  |  |  |  |  |
Net interest income (FTE) (GAAP) | $ | 140,565 |  | $ | 132,435 |  | $ | 115,321 |  | $ | 101,383 |  | $ | 103,249 |  |  | $ | 489,704 |  | $ | 430,720 |
Net interest income collected on problem loans | 161 |  | 78 |  | 2,276 |  | 434 |  | 577 |  |  | 2,949 |  | 4,412 |
Accretion recognized on purchased loans | 625 |  | 1,317 |  | 2,021 |  | 1,235 |  | 2,187 |  |  | 5,198 |  | 10,783 |
Interest income recognized on PPP loans | 21 |  | 5 |  | 74 |  | 619 |  | 485 |  |  | 719 |  | 24,794 |
Non-core net interest income | $ | 807 |  | $ | 1,400 |  | $ | 4,371 |  | $ | 2,288 |  | $ | 3,249 |  |  | $ | 8,866 |  | $ | 39,989 |
Core net interest income (FTE) (non-GAAP) | $ | 139,758 |  | $ | 131,035 |  | $ | 110,950 |  | $ | 99,095 |  | $ | 99,999 |  |  | $ | 480,838 |  | $ | 390,731 |
Average earning assets (GAAP) | $ | 14,774,014 |  | $ | 14,860,043 |  | $ | 14,845,199 |  | $ | 14,841,146 |  | $ | 14,607,716 |  |  | $ | 14,830,260 |  | $ | 14,055,091 |
Average PPP loans | 4,940 |  | 6,647 |  | 7,863 |  | 39,506 |  | 62,726 |  |  | 14,619 |  | 448,959 |
Average earning assets excluding PPP loans (non-GAAP) | $ | 14,769,074 |  | $ | 14,853,396 |  | $ | 14,837,336 |  | $ | 14,801,640 |  | $ | 14,544,990 |  |  | $ | 14,815,641 |  | $ | 13,606,132 |
Net interest margin (GAAP) | 3.78 | % | 3.54 | % | 3.11 | % | 2.76 | % | 2.81 | % |  | 3.30 | % | 3.07 | %
Core net interest margin (non-GAAP) | 3.76 | % | 3.50 | % | 3.00 | % | 2.71 | % | 2.73 | % |  | 3.25 | % | 2.87 | %

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(Dollars in thousands, except per share data) | Three Months Ended |  | Twelve Months Ended
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 |  | Dec 31, 2022 | Dec 31, 2021
Core Loan Yield |  |  |  |  |  |  |  |
Loan interest income (FTE) (GAAP) | $ | 147,519 |  | $ | 124,614 |  | $ | 107,612 |  | $ | 97,001 |  | $ | 99,670 |  |  | $ | 476,746 |  | $ | 427,296 |
Net interest income collected on problem loans | 161 |  | 78 |  | 2,276 |  | 434 |  | 578 |  |  | 2,949 |  | 4,412 |
Accretion recognized on purchased loans | 625 |  | 1,317 |  | 2,021 |  | 1,235 |  | 2,187 |  |  | 5,198 |  | 10,783 |
Interest income recognized on PPP loans | 21 |  | 5 |  | 74 |  | 619 |  | 485 |  |  | 719 |  | 24,794 |
Core loan interest income (FTE) (non-GAAP) | $ | 146,712 |  | $ | 123,214 |  | $ | 103,241 |  | $ | 94,713 |  | $ | 96,420 |  |  | $ | 467,880 |  | $ | 387,307 |
Average loans (GAAP) | $ | 11,282,422 |  | $ | 10,829,137 |  | $ | 10,477,036 |  | $ | 10,108,511 |  | $ | 9,948,610 |  |  | $ | 10,677,995 |  | $ | 10,310,070 |
Average PPP loans | 4,940 |  | 6,647 |  | 7,863 |  | 39,506 |  | 62,726 |  |  | 14,619 |  | 448,959 |
Average loans excluding PPP loans (non-GAAP) | $ | 11,277,482 |  | $ | 10,822,490 |  | $ | 10,469,173 |  | $ | 10,069,005 |  | $ | 9,885,884 |  |  | $ | 10,663,376 |  | $ | 9,861,111 |
Loan yield (GAAP) | 5.19 | % | 4.57 | % | 4.12 | % | 3.88 | % | 3.98 | % |  | 4.46 | % | 4.15 | %
Core loan yield (non-GAAP) | 5.16 | % | 4.52 | % | 3.96 | % | 3.82 | % | 3.87 | % |  | 4.39 | % | 3.93 | %
Adjusted Asset Quality Ratios |  |  |  |  |  |  |  |
Classified loans | $ | 200,249 |  | $ | 193,844 |  | $ | 185,267 |  | $ | 178,015 |  | $ | 160,790 |  |  | $ | 200,249 |  | $ | 160,790 |
Special Mention loans | 86,172 |  | 69,883 |  | 87,476 |  | 76,949 |  | 115,496 |  |  | 86,172 |  | 115,496 |
Criticized loans(3) | $ | 286,421 |  | $ | 263,727 |  | $ | 272,743 |  | $ | 254,964 |  | $ | 276,286 |  |  | $ | 286,421 |  | $ | 276,286 |
Criticized loans / total loans (GAAP) | 2.47 | % | 2.37 | % | 2.57 | % | 2.47 | % | 2.76 | % |  | 2.47 | % | 2.76 | %

(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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