EX-99.1 2 exhibit991_rnstx3q2023earn.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 THIRD QUARTER OF 2023
TUPELO, MISSISSIPPI (October 24, 2023) - Renasant Corporation (NYSE: RNST) (the “Company”) today announced earnings results for the third quarter of 2023.

(Dollars in thousands, except earnings per share) | Three Months Ended |  | Nine Months Ended
| Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 |  | Sep 30, 2023 | Sep 30, 2022
Net income and earnings per share: |  |  |  |  |  |
Net income | $41,833 | $28,643 | $46,567 |  | $116,554 | $119,792
After-tax loss on sale of securities | — |  | (18,085) |  | — |  |  | (17,859) |  | — |
Basic EPS | 0.75 | 0.51 | 0.83 |  | 2.08 | 2.14
Diluted EPS | 0.74 | 0.51 | 0.83 |  | 2.07 | 2.13
Impact to diluted EPS from loss on sale of securities | — |  | 0.32 | — |  |  | 0.31 | — |
Adjusted diluted EPS (Non-GAAP)(1) | 0.74 | 0.83 | 0.79 |  | 2.38 | 2.11

“We are pleased with our third quarter results of solid loan growth, good asset quality, an increase in core deposits and expense control,” remarked C. Mitchell Waycaster, Chief Executive Officer of the Company. “The Company’s focus remains on maintaining a strong balance sheet, and we believe we are well-positioned to take advantage of opportunities that may arise."
Quarterly Highlights
Earnings
•Net income for the third quarter of 2023 was $41.8 million with diluted EPS of $0.74
•Net interest income (fully tax equivalent) for the third quarter of 2023 was $130.1 million, down $3.0 million on a linked quarter basis
•For the third quarter of 2023, net interest margin was 3.36%, down 9 basis points on a linked quarter basis
•Cost of total deposits was 198 basis points for the third quarter of 2023, up 48 basis points on a linked quarter basis
•Noninterest income increased $21.0 million on a linked quarter basis. The Company recognized pre-tax losses of $22.4 million on securities sales in the second quarter of 2023 and used the sale proceeds to pay down FHLB borrowings. The Company’s wealth management and insurance lines of business continued to produce solid results during the third quarter of 2023
1

•The mortgage division generated $0.5 billion in interest rate lock volume in the third quarter of 2023. Gain on sale margin was 1.55% for the third quarter of 2023, down 11 basis points on a linked quarter basis
•Noninterest expense decreased $1.5 million on a linked quarter basis. Lower salaries and benefits and professional fees contributed to the decrease
Balance Sheet
•Loans increased $237.5 million on a linked quarter basis, which represents 7.9% annualized net loan growth
•The securities portfolio decreased $69.3 million on a linked quarter basis, due to net cash outflows during the quarter of $52.1 million and a negative fair market value adjustment in our available-for-sale portfolio of $17.2 million
•Deposits at September 30, 2023 increased $61.7 million on a linked quarter basis. Brokered deposits decreased $323 million on a linked quarter basis to $757 million at September 30, 2023. Noninterest bearing deposits decreased $144.8 million on a linked quarter basis and represented 26.4% of total deposits at September 30, 2023
Capital and Liquidity
•Book value per share and tangible book value per share (non-GAAP)(1) increased 1.1% and 2.2%, respectively, on a linked quarter basis
•The Company has a $100 million stock repurchase program that is in effect through October 2024; there was no buyback activity during the third quarter of 2023
Credit Quality
•The Company recorded a provision for credit losses on loans of $5.3 million and a recovery of credit losses on unfunded commitments (included in noninterest expense) of $0.7 million for the third quarter of 2023
•The ratio of allowance for credit losses on loans to total loans was stable at 1.63% at September 30, 2023
•The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 282.24% at September 30, 2023, compared to 211.85% at June 30, 2023
•Net loan charge-offs for the third quarter of 2023 were $1.9 million, or 0.06% of average loans on an annualized basis
•Nonperforming loans to total loans decreased to 0.58% at September 30, 2023 compared to 0.77% at June 30, 2023 and criticized loans (which include classified and special mention loans) to total loans decreased to 2.27% at September 30, 2023, compared to 2.32% at June 30, 2023
(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 |  | Nine Months Ended
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 |  | Sep 30, 2023 | Sep 30, 2022
Interest income |  |  |  |  |  |  |  |
Loans held for investment | $ | 181,129 |  | $ | 173,198 |  | $ | 161,787 |  | $ | 145,360 |  | $ | 123,100 |  |  | $ | 516,114 |  | $ | 325,338 |
Loans held for sale | 3,751 |  | 2,990 |  | 1,737 |  | 1,688 |  | 2,075 |  |  | 8,478 |  | 7,524 |
Securities | 10,669 |  | 14,000 |  | 15,091 |  | 15,241 |  | 14,500 |  |  | 39,760 |  | 37,806 |
Other | 10,128 |  | 6,978 |  | 5,430 |  | 2,777 |  | 3,458 |  |  | 22,536 |  | 6,076 |
Total interest income | 205,677 |  | 197,166 |  | 184,045 |  | 165,066 |  | 143,133 |  |  | 586,888 |  | 376,744 |
Interest expense |  |  |  |  |  |  |  |
Deposits | 70,906 |  | 51,391 |  | 32,866 |  | 17,312 |  | 7,241 |  |  | 155,163 |  | 17,896 |
Borrowings | 7,388 |  | 15,559 |  | 15,404 |  | 9,918 |  | 5,574 |  |  | 38,351 |  | 15,386 |
Total interest expense | 78,294 |  | 66,950 |  | 48,270 |  | 27,230 |  | 12,815 |  |  | 193,514 |  | 33,282 |
Net interest income | 127,383 |  | 130,216 |  | 135,775 |  | 137,836 |  | 130,318 |  |  | 393,374 |  | 343,462 |
Provision for credit losses | 5,315 |  | 3,000 |  | 7,960 |  | 10,488 |  | 9,800 |  |  | 16,275 |  | 13,300 |
Net interest income after provision for credit losses | 122,068 |  | 127,216 |  | 127,815 |  | 127,348 |  | 120,518 |  |  | 377,099 |  | 330,162 |
Noninterest income | 38,200 |  | 17,226 |  | 37,293 |  | 33,395 |  | 41,186 |  |  | 92,719 |  | 115,858 |
Noninterest expense | 107,669 |  | 109,165 |  | 107,708 |  | 101,582 |  | 101,574 |  |  | 324,542 |  | 293,873 |
Income before income taxes | 52,599 |  | 35,277 |  | 57,400 |  | 59,161 |  | 60,130 |  |  | 145,276 |  | 152,147 |
Income taxes | 10,766 |  | 6,634 |  | 11,322 |  | 12,885 |  | 13,563 |  |  | 28,722 |  | 32,355 |
Net income | $ | 41,833 |  | $ | 28,643 |  | $ | 46,078 |  | $ | 46,276 |  | $ | 46,567 |  |  | $ | 116,554 |  | $ | 119,792 |
Adjusted net income (non-GAAP)(1) | $ | 41,833 |  | $ | 46,728 |  | $ | 46,078 |  | $ | 50,324 |  | $ | 44,233 |  |  | $ | 134,413 |  | $ | 118,562 |
Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1) | $ | 57,214 |  | $ | 59,715 |  | $ | 63,860 |  | $ | 72,187 |  | $ | 66,970 |  |  | $ | 180,789 |  | $ | 163,806 |
Basic earnings per share | $ | 0.75 |  | $ | 0.51 |  | $ | 0.82 |  | $ | 0.83 |  | $ | 0.83 |  |  | $ | 2.08 |  | $ | 2.14 |
Diluted earnings per share | 0.74 |  | 0.51 |  | 0.82 |  | 0.82 |  | 0.83 |  |  | 2.07 |  | 2.13 |
Adjusted diluted earnings per share (non-GAAP)(1) | 0.74 |  | 0.83 |  | 0.82 |  | 0.89 |  | 0.79 |  |  | 2.38 |  | 2.11 |
Average basic shares outstanding | 56,138,618 |  | 56,107,881 |  | 56,008,741 |  | 55,953,104 |  | 55,947,214 |  |  | 56,085,556 |  | 55,888,226 |
Average diluted shares outstanding | 56,523,887 |  | 56,395,653 |  | 56,270,219 |  | 56,335,446 |  | 56,248,720 |  |  | 56,393,957 |  | 56,169,886 |
Cash dividends per common share | $ | 0.22 |  | $ | 0.22 |  | $ | 0.22 |  | $ | 0.22 |  | $ | 0.22 |  |  | $ | 0.66 |  | $ | 0.66 |

(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 |  | Nine Months Ended
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 |  | Sep 30, 2023 | Sep 30, 2022
Return on average assets | 0.96 | % | 0.66 | % | 1.09 | % | 1.11 | % | 1.11 | % |  | 0.90 | % | 0.96 | %
Adjusted return on average assets (non-GAAP)(1) | 0.96 |  | 1.08 |  | 1.09 |  | 1.20 |  | 1.05 |  |  | 1.04 |  | 0.95 |
Return on average tangible assets (non-GAAP)(1) | 1.05 |  | 0.73 |  | 1.19 |  | 1.20 |  | 1.20 |  |  | 0.99 |  | 1.05 |
Adjusted return on average tangible assets (non-GAAP)(1) | 1.05 |  | 1.18 |  | 1.19 |  | 1.30 |  | 1.14 |  |  | 1.13 |  | 1.04 |
Return on average equity | 7.44 |  | 5.18 |  | 8.55 |  | 8.58 |  | 8.50 |  |  | 7.04 |  | 7.28 |
Adjusted return on average equity (non-GAAP)(1) | 7.44 |  | 8.45 |  | 8.55 |  | 9.33 |  | 8.07 |  |  | 8.12 |  | 7.21 |
Return on average tangible equity (non-GAAP)(1) | 13.95 |  | 9.91 |  | 16.29 |  | 15.98 |  | 15.64 |  |  | 13.35 |  | 13.32 |
Adjusted return on average tangible equity (non-GAAP)(1) | 13.95 |  | 15.94 |  | 16.29 |  | 17.35 |  | 14.87 |  |  | 15.35 |  | 13.19 |
Efficiency ratio (fully taxable equivalent) | 63.96 |  | 72.63 |  | 61.26 |  | 58.39 |  | 58.50 |  |  | 65.64 |  | 63.20 |
Adjusted efficiency ratio (non-GAAP)(1) | 63.60 |  | 62.98 |  | 61.30 |  | 56.25 |  | 58.78 |  |  | 62.61 |  | 62.47 |
Dividend payout ratio | 29.33 |  | 43.14 |  | 26.83 |  | 26.51 |  | 26.51 |  |  | 31.73 |  | 30.84 |

Capital and Balance Sheet Ratios

| As of
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022
Shares outstanding | 56,140,713 |  | 56,132,478 |  | 56,073,658 |  | 55,953,104 |  | 55,953,104 |
Market value per share | $ | 26.19 |  | $ | 26.13 |  | $ | 30.58 |  | $ | 37.59 |  | $ | 31.28 |
Book value per share | 39.78 |  | 39.35 |  | 39.01 |  | 38.18 |  | 37.39 |
Tangible book value per share (non-GAAP)(1) | 21.76 |  | 21.30 |  | 20.92 |  | 20.02 |  | 20.12 |
Shareholders’ equity to assets | 13.00 | % | 12.82 | % | 12.52 | % | 12.57 | % | 12.70 | %
Tangible common equity ratio (non-GAAP)(1) | 7.55 |  | 7.37 |  | 7.13 |  | 7.01 |  | 7.26 |
Leverage ratio | 9.48 |  | 9.22 |  | 9.18 |  | 9.36 |  | 9.39 |
Common equity tier 1 capital ratio | 10.46 |  | 10.30 |  | 10.19 |  | 10.21 |  | 10.64 |
Tier 1 risk-based capital ratio | 11.25 |  | 11.09 |  | 10.98 |  | 11.01 |  | 11.47 |
Total risk-based capital ratio | 14.91 |  | 14.76 |  | 14.68 |  | 14.63 |  | 15.15 |

(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 |  | Nine Months Ended
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 |  | Sep 30, 2023 | Sep 30, 2022
Noninterest income |  |  |  |  |  |  |  |
Service charges on deposit accounts | $ | 9,743 |  | $ | 9,733 |  | $ | 9,120 |  | $ | 10,445 |  | $ | 10,216 |  |  | $ | 28,596 |  | $ | 29,512 |
Fees and commissions | 4,108 |  | 4,987 |  | 4,676 |  | 4,470 |  | 4,148 |  |  | 13,771 |  | 12,798 |
Insurance commissions | 3,264 |  | 2,809 |  | 2,446 |  | 2,501 |  | 3,108 |  |  | 8,519 |  | 8,253 |
Wealth management revenue | 5,986 |  | 5,338 |  | 5,140 |  | 5,237 |  | 5,467 |  |  | 16,464 |  | 17,102 |
Mortgage banking income | 7,533 |  | 9,771 |  | 8,517 |  | 5,170 |  | 12,675 |  |  | 25,821 |  | 30,624 |
Net losses on sales of securities | — |  | (22,438) |  | — |  | — |  | — |  |  | (22,438) |  | — |
BOLI income | 2,469 |  | 2,402 |  | 3,003 |  | 2,487 |  | 2,296 |  |  | 7,874 |  | 6,780 |
Other | 5,097 |  | 4,624 |  | 4,391 |  | 3,085 |  | 3,276 |  |  | 14,112 |  | 10,789 |
Total noninterest income | $ | 38,200 |  | $ | 17,226 |  | $ | 37,293 |  | $ | 33,395 |  | $ | 41,186 |  |  | $ | 92,719 |  | $ | 115,858 |
Noninterest expense |  |  |  |  |  |  |  |
Salaries and employee benefits | $ | 69,458 |  | $ | 70,637 |  | $ | 69,832 |  | $ | 67,372 |  | $ | 66,463 |  |  | $ | 209,927 |  | $ | 194,282 |
Data processing | 3,907 |  | 3,684 |  | 3,633 |  | 3,521 |  | 3,526 |  |  | 11,224 |  | 11,379 |
Net occupancy and equipment | 11,548 |  | 11,865 |  | 11,405 |  | 11,122 |  | 11,266 |  |  | 34,818 |  | 33,697 |
Other real estate owned | (120) |  | 51 |  | 30 |  | (59) |  | 34 |  |  | (39) |  | (394) |
Professional fees | 3,338 |  | 4,012 |  | 3,467 |  | 2,856 |  | 3,087 |  |  | 10,817 |  | 9,016 |
Advertising and public relations | 3,474 |  | 3,482 |  | 4,686 |  | 3,631 |  | 3,229 |  |  | 11,642 |  | 10,694 |
Intangible amortization | 1,311 |  | 1,369 |  | 1,426 |  | 1,195 |  | 1,251 |  |  | 4,106 |  | 3,927 |
Communications | 2,006 |  | 2,226 |  | 1,980 |  | 2,028 |  | 1,999 |  |  | 6,212 |  | 5,930 |
Merger and conversion related expenses | — |  | — |  | — |  | 1,100 |  | — |  |  | — |  | 687 |
Restructuring charges | — |  | — |  | — |  | — |  | — |  |  | — |  | 732 |
Other | 12,747 |  | 11,839 |  | 11,249 |  | 8,816 |  | 10,719 |  |  | 35,835 |  | 23,923 |
Total noninterest expense | $ | 107,669 |  | $ | 109,165 |  | $ | 107,708 |  | $ | 101,582 |  | $ | 101,574 |  |  | $ | 324,542 |  | $ | 293,873 |

Mortgage Banking Income

(Dollars in thousands) | Three Months Ended |  | Nine Months Ended
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 |  | Sep 30, 2023 | Sep 30, 2022
Gain on sales of loans, net | $ | 3,297 |  | $ | 4,646 |  | $ | 4,770 |  | $ | 1,003 |  | $ | 5,263 |  |  | $ | 12,713 |  | $ | 14,800 |
Fees, net | 2,376 |  | 2,859 |  | 1,806 |  | 1,849 |  | 2,405 |  |  | 7,041 |  | 8,522 |
Mortgage servicing income, net | 1,860 |  | 2,266 |  | 1,941 |  | 2,318 |  | 5,007 |  |  | 6,067 |  | 7,302 |
Total mortgage banking income | $ | 7,533 |  | $ | 9,771 |  | $ | 8,517 |  | $ | 5,170 |  | $ | 12,675 |  |  | $ | 25,821 |  | $ | 30,624 |

5

Balance Sheet

(Dollars in thousands) | As of
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022
Assets |  |  |  |  |
Cash and cash equivalents | $ | 741,156 |  | $ | 946,899 |  | $ | 847,697 |  | $ | 575,992 |  | $ | 479,500 |
Securities held to maturity, at amortized cost | 1,245,595 |  | 1,273,044 |  | 1,300,240 |  | 1,324,040 |  | 1,353,502 |
Securities available for sale, at fair value | 909,108 |  | 950,930 |  | 1,507,907 |  | 1,533,942 |  | 1,569,242 |
Loans held for sale, at fair value | 241,613 |  | 249,615 |  | 159,318 |  | 110,105 |  | 144,642 |
Loans held for investment | 12,168,023 |  | 11,930,516 |  | 11,766,425 |  | 11,578,304 |  | 11,105,004 |
Allowance for credit losses on loans | (197,773) |  | (194,391) |  | (195,292) |  | (192,090) |  | (174,356) |
Loans, net | 11,970,250 |  | 11,736,125 |  | 11,571,133 |  | 11,386,214 |  | 10,930,648 |
Premises and equipment, net | 284,368 |  | 285,952 |  | 287,006 |  | 283,595 |  | 284,062 |
Other real estate owned | 9,258 |  | 5,120 |  | 4,818 |  | 1,763 |  | 2,412 |
Goodwill and other intangibles | 1,011,735 |  | 1,013,046 |  | 1,014,415 |  | 1,015,884 |  | 966,461 |
Bank-owned life insurance | 379,945 |  | 377,649 |  | 375,572 |  | 373,808 |  | 371,650 |
Mortgage servicing rights | 90,241 |  | 87,432 |  | 85,039 |  | 84,448 |  | 81,980 |
Other assets | 298,352 |  | 298,530 |  | 320,938 |  | 298,385 |  | 287,000 |
Total assets | $ | 17,181,621 |  | $ | 17,224,342 |  | $ | 17,474,083 |  | $ | 16,988,176 |  | $ | 16,471,099 |
Liabilities and Shareholders’ Equity |  |  |  |  |
Liabilities |  |  |  |  |
Deposits: |  |  |  |  |
Noninterest-bearing | $ | 3,734,197 |  | $ | 3,878,953 |  | $ | 4,244,877 |  | $ | 4,558,756 |  | $ | 4,827,220 |
Interest-bearing | 10,422,913 |  | 10,216,408 |  | 9,667,142 |  | 8,928,210 |  | 8,604,904 |
Total deposits | 14,157,110 |  | 14,095,361 |  | 13,912,019 |  | 13,486,966 |  | 13,432,124 |
Short-term borrowings | 107,662 |  | 257,305 |  | 732,057 |  | 712,232 |  | 312,818 |
Long-term debt | 427,399 |  | 429,630 |  | 431,111 |  | 428,133 |  | 426,821 |
Other liabilities | 256,127 |  | 233,418 |  | 211,596 |  | 224,829 |  | 207,055 |
Total liabilities | 14,948,298 |  | 15,015,714 |  | 15,286,783 |  | 14,852,160 |  | 14,378,818 |
Shareholders’ equity: |  |  |  |  |
Preferred stock | — |  | — |  | — |  | — |  | — |
Common stock | 296,483 |  | 296,483 |  | 296,483 |  | 296,483 |  | 296,483 |
Treasury stock | (105,300) |  | (105,589) |  | (107,559) |  | (111,577) |  | (111,577) |
Additional paid-in capital | 1,304,891 |  | 1,301,883 |  | 1,299,458 |  | 1,302,422 |  | 1,299,476 |
Retained earnings | 936,573 |  | 907,312 |  | 891,242 |  | 857,725 |  | 823,951 |
Accumulated other comprehensive loss | (199,324) |  | (191,461) |  | (192,324) |  | (209,037) |  | (216,052) |
Total shareholders’ equity | 2,233,323 |  | 2,208,628 |  | 2,187,300 |  | 2,136,016 |  | 2,092,281 |
Total liabilities and shareholders’ equity | $ | 17,181,621 |  | $ | 17,224,342 |  | $ | 17,474,083 |  | $ | 16,988,176 |  | $ | 16,471,099 |

6

Net Interest Income and Net Interest Margin

(Dollars in thousands) | Three Months Ended
| September 30, 2023 | June 30, 2023 | September 30, 2022
| Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate
Interest-earning assets: |  |  |  |  |  |  |  |  |
Loans held for investment | $ | 12,030,109 |  | $ | 183,521 |  | 6.06 | % | $ | 11,877,592 |  | $ | 175,549 |  | 5.93 | % | $ | 10,829,137 |  | $ | 124,614 |  | 4.57 | %
Loans held for sale | 227,982 |  | 3,751 |  | 6.58 | % | 192,539 |  | 2,990 |  | 6.21 | % | 143,837 |  | 2,075 |  | 5.77 | %
Taxable securities | 2,053,113 |  | 9,218 |  | 1.80 | % | 2,435,442 |  | 12,089 |  | 1.99 | % | 2,773,924 |  | 12,439 |  | 1.79 | %
Tax-exempt securities(1) | 329,760 |  | 1,807 |  | 2.19 | % | 413,680 |  | 2,429 |  | 2.35 | % | 449,927 |  | 2,664 |  | 2.37 | %
Total securities | 2,382,873 |  | 11,025 |  | 1.85 | % | 2,849,122 |  | 14,518 |  | 2.04 | % | 3,223,851 |  | 15,103 |  | 1.87 | %
Interest-bearing balances with banks | 729,049 |  | 10,128 |  | 5.51 | % | 524,307 |  | 6,978 |  | 5.34 | % | 663,218 |  | 3,458 |  | 2.07 | %
Total interest-earning assets | 15,370,013 |  | 208,425 |  | 5.39 | % | 15,443,560 |  | 200,035 |  | 5.19 | % | 14,860,043 |  | 145,250 |  | 3.89 | %
Cash and due from banks | 180,708 |  |  |  | 189,668 |  |  |  | 191,358 |  |  |
Intangible assets | 1,012,460 |  |  |  | 1,013,811 |  |  |  | 967,154 |  |  |
Other assets | 672,232 |  |  |  | 690,885 |  |  |  | 626,926 |  |  |
Total assets | $ | 17,235,413 |  |  |  | $ | 17,337,924 |  |  |  | $ | 16,645,481 |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |
Interest-bearing demand(2) | $ | 6,520,145 |  | $ | 41,464 |  | 2.52 | % | $ | 6,114,067 |  | $ | 29,185 |  | 1.91 | % | $ | 6,462,940 |  | $ | 6,061 |  | 0.37 | %
Savings deposits | 942,619 |  | 793 |  | 0.33 | % | 1,004,096 |  | 813 |  | 0.32 | % | 1,134,665 |  | 155 |  | 0.05 | %
Brokered deposits | 947,970 |  | 12,490 |  | 5.23 | % | 810,087 |  | 10,090 |  | 5.00 | % | — |  | — |  | — | %
Time deposits | 2,001,923 |  | 16,159 |  | 3.20 | % | 1,735,093 |  | 11,303 |  | 2.61 | % | 1,240,439 |  | 1,025 |  | 0.33 | %
Total interest-bearing deposits | 10,412,657 |  | 70,906 |  | 2.70 | % | 9,663,343 |  | 51,391 |  | 2.13 | % | 8,838,044 |  | 7,241 |  | 0.33 | %
Borrowed funds | 545,105 |  | 7,388 |  | 5.40 | % | 1,204,968 |  | 15,559 |  | 5.18 | % | 572,376 |  | 5,574 |  | 3.88 | %
Total interest-bearing liabilities | 10,957,762 |  | 78,294 |  | 2.84 | % | 10,868,311 |  | 66,950 |  | 2.47 | % | 9,410,420 |  | 12,815 |  | 0.54 | %
Noninterest-bearing deposits | 3,800,160 |  |  |  | 4,039,087 |  |  |  | 4,867,314 |  |  |
Other liabilities | 245,886 |  |  |  | 212,818 |  |  |  | 194,339 |  |  |
Shareholders’ equity | 2,231,605 |  |  |  | 2,217,708 |  |  |  | 2,173,408 |  |  |
Total liabilities and shareholders’ equity | $ | 17,235,413 |  |  |  | $ | 17,337,924 |  |  |  | $ | 16,645,481 |  |  |
Net interest income/ net interest margin |  | $ | 130,131 |  | 3.36 | % |  | $ | 133,085 |  | 3.45 | % |  | $ | 132,435 |  | 3.54 | %
Cost of funding |  |  | 2.11 | % |  |  | 1.80 | % |  |  | 0.36 | %
Cost of total deposits |  |  | 1.98 | % |  |  | 1.50 | % |  |  | 0.21 | %

(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) | Nine Months Ended
| September 30, 2023 | September 30, 2022
| Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate
Interest-earning assets: |  |  |  |  |  |
Loans held for investment | $ | 11,866,662 |  | $ | 523,040 |  | 5.89% | $ | 10,474,305 |  | $ | 329,227 |  | 4.20%
Loans held for sale | 175,100 |  | 8,478 |  | 6.46% | 233,266 |  | 7,524 |  | 4.30%
Taxable securities(1) | 2,356,962 |  | 34,361 |  | 1.94% | 2,653,735 |  | 31,576 |  | 1.59%
Tax-exempt securities | 395,394 |  | 6,844 |  | 2.31% | 446,762 |  | 8,018 |  | 2.39%
Total securities | 2,752,356 |  | 41,205 |  | 2.00% | 3,100,497 |  | 39,594 |  | 1.70%
Interest-bearing balances with banks | 573,498 |  | 22,536 |  | 5.25% | 1,041,145 |  | 6,076 |  | 0.78%
Total interest-earning assets | 15,367,616 |  | 595,259 |  | 5.18% | 14,849,213 |  | 382,421 |  | 3.44%
Cash and due from banks | 189,324 |  |  |  | 201,436 |  |  |
Intangible assets | 1,012,613 |  |  |  | 967,023 |  |  |
Other assets | 674,476 |  |  |  | 640,403 |  |  |
Total assets | $ | 17,244,029 |  |  |  | $ | 16,658,075 |  |  |
Interest-bearing liabilities: |  |  |  |  |  |
Interest-bearing demand(2) | $ | 6,235,322 |  | $ | 90,947 |  | 1.95% | $ | 6,556,454 |  | $ | 13,306 |  | 0.27%
Savings deposits | 999,436 |  | 2,432 |  | 0.33% | 1,123,433 |  | 441 |  | 0.05%
Brokered deposits | 720,022 |  | 26,898 |  | 4.99% | — |  | — |  | —%
Time deposits | 1,768,827 |  | 34,886 |  | 2.64% | 1,305,800 |  | 4,149 |  | 0.42%
Total interest-bearing deposits | 9,723,607 |  | 155,163 |  | 2.13% | 8,985,687 |  | 17,896 |  | 0.27%
Borrowed funds | 1,007,844 |  | 38,351 |  | 5.08% | 534,296 |  | 15,386 |  | 3.84%
Total interest-bearing liabilities | 10,731,451 |  | 193,514 |  | 2.41% | 9,519,983 |  | 33,282 |  | 0.47%
Noninterest-bearing deposits | 4,073,265 |  |  |  | 4,745,409 |  |  |
Other liabilities | 227,114 |  |  |  | 192,744 |  |  |
Shareholders’ equity | 2,212,199 |  |  |  | 2,199,939 |  |  |
Total liabilities and shareholders’ equity | $ | 17,244,029 |  |  |  | $ | 16,658,075 |  |  |
Net interest income/ net interest margin |  | $ | 401,745 |  | 3.49% |  | $ | 349,139 |  | 3.14%
Cost of funding |  |  | 1.75% |  |  | 0.31%
Cost of total deposits |  |  | 1.50% |  |  | 0.17%

(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 |  | Nine Months Ended
| Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 |  | Sep 30, 2023 | Sep 30, 2022
Earning asset mix: |  |  |  |  |  |
Loans held for investment | 78.27 | % | 76.91 | % | 72.87 | % |  | 77.22 | % | 70.54 | %
Loans held for sale | 1.48 |  | 1.25 |  | 0.97 |  |  | 1.14 |  | 1.57 |
Securities | 15.50 |  | 18.45 |  | 21.69 |  |  | 17.91 |  | 20.88 |
Interest-bearing balances with banks | 4.75 |  | 3.39 |  | 4.47 |  |  | 3.73 |  | 7.01 |
Total | 100.00 | % | 100.00 | % | 100.00 | % |  | 100.00 | % | 100.00 | %
Funding sources mix: |  |  |  |  |  |
Noninterest-bearing demand | 25.75 | % | 27.09 | % | 34.09 | % |  | 27.51 | % | 33.27 | %
Interest-bearing demand | 44.18 |  | 41.01 |  | 45.27 |  |  | 42.12 |  | 45.96 |
Savings | 6.39 |  | 6.74 |  | 7.95 |  |  | 6.75 |  | 7.88 |
Brokered deposits | 6.42 |  | 5.43 |  | — |  |  | 4.86 |  | — |
Time deposits | 13.57 |  | 11.64 |  | 8.69 |  |  | 11.95 |  | 9.15 |
Borrowed funds | 3.69 |  | 8.09 |  | 4.00 |  |  | 6.81 |  | 3.74 |
Total | 100.00 | % | 100.00 | % | 100.00 | % |  | 100.00 | % | 100.00 | %
Net interest income collected on problem loans | $ | (820) |  | $ | 364 |  | $ | 78 |  |  | $ | (64) |  | $ | 2,788 |
Total accretion on purchased loans | 1,290 |  | 874 |  | 1,317 |  |  | 3,049 |  | 4,573 |
Total impact on net interest income | $ | 470 |  | $ | 1,238 |  | $ | 1,395 |  |  | $ | 2,985 |  | $ | 7,361 |
Impact on net interest margin | 0.01 | % | 0.03 | % | 0.04 | % |  | 0.03 | % | 0.07 | %
Impact on loan yield | 0.02 | % | 0.04 | % | 0.05 | % |  | 0.03 | % | 0.09 | %

9

Loan Portfolio

(Dollars in thousands) | As of
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022
Loan Portfolio: |  |  |  |  |
Commercial, financial, agricultural | $ | 1,819,891 |  | $ | 1,729,070 |  | $ | 1,740,778 |  | $ | 1,673,883 |  | $ | 1,513,091 |
Lease financing | 120,724 |  | 122,370 |  | 121,146 |  | 115,013 |  | 103,357 |
Real estate - construction | 1,407,364 |  | 1,369,019 |  | 1,424,352 |  | 1,330,337 |  | 1,215,056 |
Real estate - 1-4 family mortgages | 3,398,876 |  | 3,348,654 |  | 3,278,980 |  | 3,216,263 |  | 3,127,889 |
Real estate - commercial mortgages | 5,313,166 |  | 5,252,479 |  | 5,085,813 |  | 5,118,063 |  | 5,016,665 |
Installment loans to individuals | 108,002 |  | 108,924 |  | 115,356 |  | 124,745 |  | 128,946 |
Total loans | $ | 12,168,023 |  | $ | 11,930,516 |  | $ | 11,766,425 |  | $ | 11,578,304 |  | $ | 11,105,004 |

Credit Quality and Allowance for Credit Losses on Loans

(Dollars in thousands) | As of
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022
Nonperforming Assets: |  |  |  |  |
Nonaccruing loans | $ | 69,541 |  | $ | 55,439 |  | $ | 56,626 |  | $ | 56,545 |  | $ | 54,278 |
Loans 90 days or more past due | 532 |  | 36,321 |  | 18,664 |  | 331 |  | 1,587 |
Total nonperforming loans | 70,073 |  | 91,760 |  | 75,290 |  | 56,876 |  | 55,865 |
Other real estate owned | 9,258 |  | 5,120 |  | 4,818 |  | 1,763 |  | 2,412 |
Total nonperforming assets | $ | 79,331 |  | $ | 96,880 |  | $ | 80,108 |  | $ | 58,639 |  | $ | 58,277 |
Criticized Loans |  |  |  |  |
Classified loans | $ | 186,052 |  | $ | 219,674 |  | $ | 222,701 |  | $ | 200,249 |  | $ | 193,844 |
Special Mention loans | 89,858 |  | 56,616 |  | 64,832 |  | 86,172 |  | 69,883 |
Criticized loans(1) | $ | 275,910 |  | $ | 276,290 |  | $ | 287,533 |  | $ | 286,421 |  | $ | 263,727 |
Allowance for credit losses on loans | $ | 197,773 |  | $ | 194,391 |  | $ | 195,292 |  | $ | 192,090 |  | $ | 174,356 |
Net loan charge-offs | $ | 1,933 |  | $ | 3,901 |  | $ | 4,732 |  | $ | 2,566 |  | $ | 1,575 |
Annualized net loan charge-offs / average loans | 0.06 | % | 0.13 | % | 0.16 | % | 0.09 | % | 0.06 | %
Nonperforming loans / total loans | 0.58 |  | 0.77 |  | 0.64 |  | 0.49 |  | 0.50 |
Nonperforming assets / total assets | 0.46 |  | 0.56 |  | 0.46 |  | 0.35 |  | 0.35 |
Allowance for credit losses on loans / total loans | 1.63 |  | 1.63 |  | 1.66 |  | 1.66 |  | 1.57 |
Allowance for credit losses on loans / nonperforming loans | 282.24 |  | 211.85 |  | 259.39 |  | 337.73 |  | 312.10 |
Criticized loans / total loans | 2.27 |  | 2.32 |  | 2.44 |  | 2.47 |  | 2.37 |

(1) Criticized loans include loans in risk rating classifications of classified and special mention.
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, October 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=27s2FjbF. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2023 Third Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.
The webcast will be archived on www.renasant.com after the call and will remain accessible for one year. A replay can be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 9960742 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until November 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 $17.2 billion and operates 194 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, factoring and mortgage lending and auto lending industries; (v) the financial resources of, and products available from, competitors; (vi) changes in laws and regulations as well as changes in accounting standards; (vii) changes in policy by regulatory agencies; (viii) changes in the securities and foreign exchange markets; (ix) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (x) changes in the quality or composition of the Company’s loan or investment portfolios, including adverse developments in borrower industries or in repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of our investment securities portfolio; (xi) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xii) changes in the sources and costs of the capital we use to make loans and otherwise fund our operations, due to deposit outflows, changes in the mix of deposits and the cost and availability of borrowings; (xiii) general economic, market or business conditions, including the impact of inflation; (xiv) changes in demand for loan products and financial services; (xv) concentration of deposit and credit exposure; (xvi) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xvii) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xviii) civil unrest, natural disasters, epidemics (including the re-emergence of the
11

COVID-19 pandemic) and other catastrophic events in the Company’s geographic area; (xix) the impact, extent and timing of technological changes; and (xx) other circumstances, many of which are beyond management’s control.
Management believes that the assumptions underlying the Company’s forward-looking statements are reasonable, but any of the assumptions could prove to be inaccurate. Investors are urged to carefully consider the risks described in the Company’s filings with the Securities and Exchange Commission (the “SEC”) from time to time, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.renasant.com and the SEC’s website at www.sec.gov.
The Company undertakes no obligation, and specifically disclaims any obligation, to update or revise forward-looking statements, whether as a result of new information or to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by federal securities laws.
NON-GAAP FINANCIAL MEASURES:
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this press release and the presentation slides furnished to the SEC on the same Form 8-K as this release contain non-GAAP financial measures, including, without limitation, (i) adjusted loan yield, (ii) adjusted net interest income and margin, (iii) pre-provision net revenue (including on an as-adjusted basis), (iv) adjusted net income, (v) adjusted diluted earnings per share, (vi) tangible book value per share, (vii) the tangible common equity ratio, (viii) certain performance ratios (namely, the ratio of pre-provision net revenue to average assets, the adjusted return on average assets and on average equity, and the return on average tangible assets and on average tangible common equity (including each of the foregoing on an as-adjusted basis)), and (ix) the adjusted efficiency ratio.
These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and/or certain charges (such as the recovery of the provision for unfunded commitments), with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible and charges such as the provision for unfunded commitments (or the recovery thereof) 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 |  | Nine Months Ended
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 |  | Sep 30, 2023 | Sep 30, 2022
Adjusted Pre-Provision Net Revenue (“PPNR”) |  |  |  |  |  |
Net income (GAAP) | $ | 41,833 |  | $ | 28,643 |  | $ | 46,078 |  | $ | 46,276 |  | $ | 46,567 |  |  | $ | 116,554 |  | $ | 119,792 |
Income taxes | 10,766 |  | 6,634 |  | 11,322 |  | 12,885 |  | 13,563 |  |  | 28,722 |  | 32,355 |
Provision for credit losses (including unfunded commitments) | 4,615 |  | 2,000 |  | 6,460 |  | 10,671 |  | 9,800 |  |  | 13,075 |  | 13,200 |
Pre-provision net revenue (non-GAAP) | $ | 57,214 |  | $ | 37,277 |  | $ | 63,860 |  | $ | 69,832 |  | $ | 69,930 |  |  | $ | 158,351 |  | $ | 165,347 |
Merger and conversion expense | — |  | — |  | — |  | 1,100 |  | — |  |  | — |  | 687 |
Gain on sale of MSR | — |  | — |  | — |  | — |  | (2,960) |  |  | — |  | (2,960) |
Restructuring charges | — |  | — |  | — |  | — |  | — |  |  | — |  | 732 |
Voluntary reimbursement of certain re-presentment NSF fees | — |  | — |  | — |  | 1,255 |  | — |  |  | — |  | — |
Losses on security sales | — |  | 22,438 |  | — |  | — |  | — |  |  | 22,438 |  | — |
Adjusted pre-provision net revenue (non-GAAP) | $ | 57,214 |  | $ | 59,715 |  | $ | 63,860 |  | $ | 72,187 |  | $ | 66,970 |  |  | $ | 180,789 |  | $ | 163,806 |
Adjusted Net Income and Adjusted Tangible Net Income |  |  |  |  |  |
Net income (GAAP) | $ | 41,833 |  | $ | 28,643 |  | $ | 46,078 |  | $ | 46,276 |  | $ | 46,567 |  |  | $ | 116,554 |  | $ | 119,792 |
Amortization of intangibles | 1,311 |  | 1,369 |  | 1,426 |  | 1,195 |  | 1,251 |  |  | 4,106 |  | 3,927 |
Tax effect of adjustments noted above(1) | (269) |  | (266) |  | (299) |  | (260) |  | (265) |  |  | (838) |  | (859) |
Tangible net income (non-GAAP) | $ | 42,875 |  | $ | 29,746 |  | $ | 47,205 |  | $ | 47,211 |  | $ | 47,553 |  |  | $ | 119,822 |  | $ | 122,860 |
Net income (GAAP) | $ | 41,833 |  | $ | 28,643 |  | $ | 46,078 |  | $ | 46,276 |  | $ | 46,567 |  |  | $ | 116,554 |  | $ | 119,792 |
Merger and conversion expense | — |  | — |  | — |  | 1,100 |  | — |  |  | — |  | 687 |
Gain on sale of MSR | — |  | — |  | — |  | — |  | (2,960) |  |  | — |  | (2,960) |
Restructuring charges | — |  | — |  | — |  | — |  | — |  |  | — |  | 732 |
Initial provision for acquisitions | — |  | — |  | — |  | 2,820 |  | — |  |  | — |  | — |
Voluntary reimbursement of certain re-presentment NSF fees | — |  | — |  | — |  | 1,255 |  | — |  |  | — |  | — |
Losses on security sales | — |  | 22,438 |  | — |  | — |  | — |  |  | 22,438 |  | — |
Tax effect of adjustments noted above(1) | — |  | (4,353) |  | — |  | (1,127) |  | 626 |  |  | (4,579) |  | 311 |
Adjusted net income (non-GAAP) | $ | 41,833 |  | $ | 46,728 |  | $ | 46,078 |  | $ | 50,324 |  | $ | 44,233 |  |  | $ | 134,413 |  | $ | 118,562 |
Amortization of intangibles | 1,311 |  | 1,369 |  | 1,426 |  | 1,195 |  | 1,251 |  |  | 4,106 |  | 3,927 |
Tax effect of adjustments noted above(1) | (269) |  | (266) |  | (299) |  | (260) |  | (265) |  |  | (838) |  | (859) |
Adjusted tangible net income (non-GAAP) | $ | 42,875 |  | $ | 47,831 |  | $ | 47,205 |  | $ | 51,259 |  | $ | 45,219 |  |  | $ | 137,681 |  | $ | 121,630 |
Tangible Assets and Tangible Shareholders’ Equity |  |  |  |  |  |
Average shareholders’ equity (GAAP) | $ | 2,231,605 |  | $ | 2,217,708 |  | $ | 2,186,794 |  | $ | 2,139,095 |  | $ | 2,173,408 |  |  | $ | 2,212,199 |  | $ | 2,199,939 |
Average intangible assets | 1,012,460 | 1,013,811 | 1,011,557 | 967,005 | 967,154 |  | 1,012,613 | 967,023
Average tangible shareholders’ equity (non-GAAP) | $ | 1,219,145 |  | $ | 1,203,897 |  | $ | 1,175,237 |  | $ | 1,172,090 |  | $ | 1,206,254 |  |  | $ | 1,199,586 |  | $ | 1,232,916 |
Average assets (GAAP) | $ | 17,235,413 |  | $ | 17,337,924 |  | $ | 17,157,898 |  | $ | 16,577,840 |  | $ | 16,645,481 |  |  | $ | 17,244,029 |  | $ | 16,658,075 |
Average intangible assets | 1,012,460 | 1,013,811 | 1,011,557 | 967,005 | 967,154 |  | 1,012,613 | 967,023
Average tangible assets (non-GAAP) | $ | 16,222,953 |  | $ | 16,324,113 |  | $ | 16,146,341 |  | $ | 15,610,835 |  | $ | 15,678,327 |  |  | $ | 16,231,416 |  | $ | 15,691,052 |
Shareholders’ equity (GAAP) | $ | 2,233,323 |  | $ | 2,208,628 |  | $ | 2,187,300 |  | $ | 2,136,016 |  | $ | 2,092,281 |  |  | $ | 2,233,323 |  | $ | 2,092,281 |
Intangible assets | 1,011,735 | 1,013,046 | 1,014,415 | 1,015,884 | 966,461 |  | 1,011,735 | 966,461
Tangible shareholders’ equity (non-GAAP) | $ | 1,221,588 |  | $ | 1,195,582 |  | $ | 1,172,885 |  | $ | 1,120,132 |  | $ | 1,125,820 |  |  | $ | 1,221,588 |  | $ | 1,125,820 |
Total assets (GAAP) | $ | 17,181,621 |  | $ | 17,224,342 |  | $ | 17,474,083 |  | $ | 16,988,176 |  | $ | 16,471,099 |  |  | $ | 17,181,621 |  | $ | 16,471,099 |
Intangible assets | 1,011,735 | 1,013,046 | 1,014,415 | 1,015,884 | 966,461 |  | 1,011,735 | 966,461
Total tangible assets (non-GAAP) | $ | 16,169,886 |  | $ | 16,211,296 |  | $ | 16,459,668 |  | $ | 15,972,292 |  | $ | 15,504,638 |  |  | $ | 16,169,886 |  | $ | 15,504,638 |

13

(Dollars in thousands, except per share data) | Three Months Ended |  | Nine Months Ended
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 |  | Sep 30, 2023 | Sep 30, 2022
Adjusted Performance Ratios |  |  |  |  |  |  |  |
Return on average assets (GAAP) | 0.96 | % | 0.66 | % | 1.09 | % | 1.11 | % | 1.11 | % |  | 0.90 | % | 0.96 | %
Adjusted return on average assets (non-GAAP) | 0.96 |  | 1.08 |  | 1.09 |  | 1.20 |  | 1.05 |  |  | 1.04 |  | 0.95 |
Return on average tangible assets (non-GAAP) | 1.05 |  | 0.73 |  | 1.19 |  | 1.20 |  | 1.20 |  |  | 0.99 |  | 1.05 |
Pre-provision net revenue to average assets (non-GAAP) | 1.32 |  | 0.86 |  | 1.51 |  | 1.67 |  | 1.67 |  |  | 1.23 |  | 1.33 |
Adjusted pre-provision net revenue to average assets (non-GAAP) | 1.32 |  | 1.38 |  | 1.51 |  | 1.73 |  | 1.60 |  |  | 1.40 |  | 1.31 |
Adjusted return on average tangible assets (non-GAAP) | 1.05 |  | 1.18 |  | 1.19 |  | 1.30 |  | 1.14 |  |  | 1.13 |  | 1.04 |
Return on average equity (GAAP) | 7.44 |  | 5.18 |  | 8.55 |  | 8.58 |  | 8.50 |  |  | 7.04 |  | 7.28 |
Adjusted return on average equity (non-GAAP) | 7.44 |  | 8.45 |  | 8.55 |  | 9.33 |  | 8.07 |  |  | 8.12 |  | 7.21 |
Return on average tangible equity (non-GAAP) | 13.95 |  | 9.91 |  | 16.29 |  | 15.98 |  | 15.64 |  |  | 13.35 |  | 13.32 |
Adjusted return on average tangible equity (non-GAAP) | 13.95 |  | 15.94 |  | 16.29 |  | 17.35 |  | 14.87 |  |  | 15.35 |  | 13.19 |
Adjusted Diluted Earnings Per Share |  |  |  |  |  |
Average diluted shares outstanding | 56,523,887 | 56,395,653 | 56,270,219 | 56,335,446 | 56,248,720 |  | 56,393,957 | 56,169,886
Diluted earnings per share (GAAP) | $ | 0.74 |  | $ | 0.51 |  | $ | 0.82 |  | $ | 0.82 |  | $ | 0.83 |  |  | $ | 2.07 |  | $ | 2.13 |
Adjusted diluted earnings per share (non-GAAP) | $ | 0.74 |  | $ | 0.83 |  | $ | 0.82 |  | $ | 0.89 |  | $ | 0.79 |  |  | $ | 2.38 |  | $ | 2.11 |
Tangible Book Value Per Share |  |  |  |  |  |  |  |
Shares outstanding | 56,140,713 | 56,132,478 | 56,073,658 | 55,953,104 | 55,953,104 |  | 56,140,713 | 55,953,104
Book value per share (GAAP) | $ | 39.78 |  | $ | 39.35 |  | $ | 39.01 |  | $ | 38.18 |  | $ | 37.39 |  |  | $ | 39.78 |  | $ | 37.39 |
Tangible book value per share (non-GAAP) | $ | 21.76 |  | $ | 21.30 |  | $ | 20.92 |  | $ | 20.02 |  | $ | 20.12 |  |  | $ | 21.76 |  | $ | 20.12 |
Tangible Common Equity Ratio |  |  |  |  |  |  |  |
Shareholders’ equity to assets (GAAP) | 13.00 | % | 12.82 | % | 12.52 | % | 12.57 | % | 12.70 | % |  | 13.00 | % | 12.70 | %
Tangible common equity ratio (non-GAAP) | 7.55 | % | 7.37 | % | 7.13 | % | 7.01 | % | 7.26 | % |  | 7.55 | % | 7.26 | %
Adjusted Efficiency Ratio |  |  |  |  |  |  |  |
Net interest income (FTE) (GAAP) | $ | 130,131 |  | $ | 133,085 |  | $ | 138,529 |  | $ | 140,565 |  | $ | 132,435 |  |  | $ | 401,745 |  | $ | 349,139 |
Total noninterest income (GAAP) | $ | 38,200 |  | $ | 17,226 |  | $ | 37,293 |  | $ | 33,395 |  | $ | 41,186 |  |  | $ | 92,719 |  | $ | 115,858 |
Gain on sale of MSR | — |  | — |  | — |  | — |  | 2,960 |  |  | — |  | 2,960 |
Losses on security sales | — |  | (22,438) |  | — |  | — |  | — |  |  | (22,438) |  | — |
Total adjusted noninterest income (non-GAAP) | $ | 38,200 |  | $ | 39,664 |  | $ | 37,293 |  | $ | 33,395 |  | $ | 38,226 |  |  | $ | 115,157 |  | $ | 112,898 |
Noninterest expense (GAAP) | $ | 107,669 |  | $ | 109,165 |  | $ | 107,708 |  | $ | 101,582 |  | $ | 101,574 |  |  | $ | 324,542 |  | $ | 293,873 |
Amortization of intangibles | 1,311 |  | 1,369 |  | 1,426 |  | 1,195 |  | 1,251 |  |  | 4,106 |  | 3,927 |
Merger and conversion expense | — |  | — |  | — |  | 1,100 |  | — |  |  | — |  | 687 |
Restructuring charges | — |  | — |  | — |  | — |  | — |  |  | — |  | 732 |
Voluntary reimbursement of certain re-presentment NSF fees | — |  | — |  | — |  | 1,255 |  | — |  |  | — |  | — |
(Recovery of) provision for unfunded commitments | (700) |  | (1,000) |  | (1,500) |  | 183 |  | — |  |  | (3,200) |  | (100) |
Total adjusted noninterest expense (non-GAAP) | $ | 107,058 |  | $ | 108,796 |  | $ | 107,782 |  | $ | 97,849 |  | $ | 100,323 |  |  | $ | 323,636 |  | $ | 288,627 |
Efficiency ratio (GAAP) | 63.96 | % | 72.63 | % | 61.26 | % | 58.39 | % | 58.50 | % |  | 65.64 | % | 63.20 | %
Adjusted efficiency ratio (non-GAAP) | 63.60 | % | 62.98 | % | 61.30 | % | 56.25 | % | 58.78 | % |  | 62.61 | % | 62.47 | %

14

(Dollars in thousands, except per share data) | Three Months Ended |  | Nine Months Ended
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 |  | Sep 30, 2023 | Sep 30, 2022
Adjusted Net Interest Income and Adjusted Net Interest Margin |  |  |  |  |  |
Net interest income (FTE) (GAAP) | $ | 130,131 |  | $ | 133,085 |  | $ | 138,529 |  | $ | 140,565 |  | $ | 132,435 |  |  | $ | 401,745 |  | $ | 349,139 |
Net interest income collected on problem loans | (820) |  | 364 |  | 392 |  | 161 |  | 78 |  |  | (64) |  | 2,788 |
Accretion recognized on purchased loans | 1,290 |  | 874 |  | 885 |  | 625 |  | 1,317 |  |  | 3,049 |  | 4,573 |
Adjustments to net interest income | $ | 470 |  | $ | 1,238 |  | $ | 1,277 |  | $ | 786 |  | $ | 1,395 |  |  | $ | 2,985 |  | $ | 7,361 |
Adjusted net interest income (FTE) (non-GAAP) | $ | 129,661 |  | $ | 131,847 |  | $ | 137,252 |  | $ | 139,779 |  | $ | 131,040 |  |  | $ | 398,760 |  | $ | 341,778 |
Net interest margin (GAAP) | 3.36 | % | 3.45 | % | 3.66 | % | 3.78 | % | 3.54 | % |  | 3.49 | % | 3.14 | %
Adjusted net interest margin (non-GAAP) | 3.35 | % | 3.43 | % | 3.63 | % | 3.76 | % | 3.50 | % |  | 3.47 | % | 3.07 | %
Adjusted Loan Yield |  |  |  |  |  |  |  |
Loan interest income (FTE) (GAAP) | $ | 183,521 |  | $ | 175,549 |  | $ | 163,970 |  | $ | 147,519 |  | $ | 124,614 |  |  | $ | 523,040 |  | $ | 329,227 |
Net interest income collected on problem loans | (820) |  | 364 |  | 392 |  | 161 |  | 78 |  |  | (64) |  | 2,788 |
Accretion recognized on purchased loans | 1,290 |  | 874 |  | 885 |  | 625 |  | 1,317 |  |  | 3,049 |  | 4,573 |
Adjusted loan interest income (FTE) (non-GAAP) | $ | 183,051 |  | $ | 174,311 |  | $ | 162,693 |  | $ | 146,733 |  | $ | 123,219 |  |  | $ | 520,055 |  | $ | 321,866 |
Loan yield (GAAP) | 6.06 | % | 5.93 | % | 5.68 | % | 5.19 | % | 4.57 | % |  | 5.89 | % | 4.20 | %
Adjusted loan yield (non-GAAP) | 6.04 | % | 5.89 | % | 5.64 | % | 5.16 | % | 4.52 | % |  | 5.86 | % | 4.11 | %

(1) Tax effect is calculated based on the respective periods’ effective tax rate excluding the impact of discrete items.
###
15