TUPELO, Miss., Jan. 26, 2021 (GLOBE NEWSWIRE) -- Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the fourth quarter of 2020. Net income for the fourth quarter of 2020 was $31.5 million, as compared to $38.4 million for the fourth quarter of 2019. Basic and diluted earnings per share (“EPS”) were $0.56 for the fourth quarter of 2020, as compared to basic and diluted EPS of $0.67 for the fourth quarter of 2019.

Net income for the year ended December 31, 2020, was $83.7 million, as compared to net income of $167.6 million for the same period in 2019. Basic and diluted EPS were $1.49 and $1.48, respectively, for 2020, as compared to basic and diluted EPS of $2.89 and $2.88, respectively, for 2019.

“Our fourth quarter results highlight a strong finish to a year that presented many challenges,” commented C. Mitchell Waycaster, Renasant President and Chief Executive Officer. “Renasant’s strategy is to be ‘One Team going to market as One Bank,’ and our team, while facing trying circumstances, flawlessly executed on that strategy in 2020 by providing customers across our footprint with the excellent service to which they are accustomed. We believe that we are in a great position moving into 2021 with an excellent team and diverse product line. Looking forward, we intend to continue to emphasize the importance of core funding, asset quality and strong capital, while building core earnings.”

Impact of Certain Expenses and Charges
From time to time, the Company incurs expenses and charges with respect to which management is unable to accurately predict when these expenses or charges will be incurred or, when incurred, the amount of such expenses or charges. The following tables present the impact of these expenses and charges on reported EPS for the fourth quarter of 2020 and the same period in 2019 and for the year ended December 31, 2020 and the same period in 2019. The “COVID-19 related expenses” line item in the table below primarily consists of (a) employee overtime and employee benefit accruals directly related to the Company’s response to both the COVID-19 pandemic itself and federal legislation enacted to address the pandemic, such as the CARES Act, and (b) 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) and more frequent and rigorous branch cleaning. The “restructuring charges” and “swap termination charges” line items in the table below are discussed in more detail later in this release.

(in thousands, except per share data)	Three Months Ended										Twelve Months Ended
	December 31, 2020										December 31, 2020
	Pre-tax			After-tax			Impact to Diluted EPS				Pre-tax			After-tax			Impact to Diluted EPS
Earnings, as reported	$	38,339		$	31,521		$	0.56			$	103,491		$	83,651		$	1.48
Debt prepayment penalty	3			2			—				121			97			—
MSR valuation adjustment	(1,968		)	(1,615		)	(0.03		)		11,726			9,450			0.17
Restructuring charges	7,365			6,045			0.11				7,365			5,936			0.11
Swap termination charges	2,040			1,675			0.03				2,040			1,644			0.03
COVID-19 related expenses	613			503			0.01				10,343			8,336			0.14
Earnings, with exclusions (Non-GAAP)	$	46,392		$	38,131		$	0.68			$	135,086		$	109,114		$	1.93
	Three Months Ended										Twelve Months Ended
	December 31, 2019										December 31, 2019
	Pre-tax			After-tax			Impact to Diluted EPS				Pre-tax			After-tax			Impact to Diluted EPS
Earnings, as reported	$	47,839		$	38,415		$	0.67			$	215,687		$	167,596		$	2.88
Merger and conversion expenses	76			61			—				279			216			—
Debt prepayment penalty	—			—			—				54			41			—
MSR valuation adjustment	(1,296		)	(1,040		)	(0.01		)		1,836			1,427			0.03
Earnings, with exclusions (Non-GAAP)	$	46,619		$	37,436		$	0.66			$	217,856		$	169,280		$	2.91

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.

Profitability Metrics
The following tables present the Company’s profitability metrics, including after adjusting for the impact of the mortgage servicing rights (MSR) valuation adjustment, debt prepayment penalties, merger and conversion expenses, restructuring charges, swap termination charges and COVID-19 related expenses, as applicable, for the dates presented:

	As Reported						With Exclusions (Non-GAAP)
	Three Months Ended						Three Months Ended
	December 31, 2020		September 30, 2020		December 31, 2019		December 31, 2020		September 30, 2020		December 31, 2019
Return on average assets	0.84	%	0.80	%	1.16	%	1.02	%	0.79	%	1.13	%
Return on average tangible assets (Non-GAAP)	0.94	%	0.89	%	1.30	%	1.13	%	0.89	%	1.27	%
Return on average equity	5.88	%	5.63	%	7.15	%	7.11	%	5.60	%	6.97	%
Return on average tangible equity (Non-GAAP)	11.26	%	10.87	%	13.75	%	13.52	%	10.81	%	13.41	%

        

	As Reported					With Exclusions (Non-GAAP)
	Twelve Months Ended					Twelve Months Ended
	December 31, 2020			December 31, 2019		December 31, 2020			December 31, 2019
Return on average assets	0.58	%		1.30	%	0.75	%		1.31	%
Return on average tangible assets (Non-GAAP)	0.66	%		1.46	%	0.85	%		1.48	%
Return on average equity	3.96	%		7.95	%	5.16	%		8.03	%
Return on average tangible equity (Non-GAAP)	7.83	%		15.36	%	10.06	%		15.51	%

Financial Condition
Total assets were $14.93 billion at December 31, 2020, as compared to $13.40 billion at December 31, 2019. Total loans held for investment were $10.93 billion at December 31, 2020, as compared to $9.69 billion at December 31, 2019. Loans held for investment at December 31, 2020 included $1.13 billion in Paycheck Protection Program (“PPP”) loans.

Total deposits increased to $12.06 billion at December 31, 2020, from $10.21 billion at December 31, 2019. Non-interest bearing deposits increased $1.13 billion to $3.69 billion, or 30.56% of total deposits, at December 31, 2020, as compared to $2.55 billion, or 24.99% of total deposits, at December 31, 2019. The growth in non-interest bearing deposits during the year was primarily driven by PPP lending, other government stimulus and client sentiment to maintain liquidity.

Continued Focus on Prudent Capital Management
The Company continues to prioritize maintaining a strong capital position. The Company has a $50.0 million stock repurchase plan that will remain in effect through October 2021.

At December 31, 2020, Tier 1 leverage capital was 9.37%, Common Equity Tier 1 ratio was 10.93%, Tier 1 risk-based capital ratio was 11.91% and total risk-based capital ratio was 15.07%. All regulatory ratios exceed the minimums required to be “well-capitalized.”

The Company’s ratio of shareholders’ equity to assets was 14.28% at December 31, 2020, as compared to 15.86% at December 31, 2019. The Company’s tangible capital ratio (non-GAAP) was 8.33% at December 31, 2020, as compared to 9.25% at December 31, 2019.

The PPP loans held on the Company’s balance sheet at December 31, 2020, negatively impacted the Company’s tangible capital ratio by 73 basis points and its leverage ratio by 92 basis points.

Results of Operations
Net interest income was $108.1 million for the fourth quarter of 2020, as compared to $106.3 million for the third quarter of 2020 and $108.9 million for the fourth quarter of 2019. Net interest income was $426.8 million for 2020, as compared to $443.7 million for 2019.

Net interest margin was 3.35% for the fourth quarter of 2020, as compared to 3.29% for the third quarter of 2020 and 3.90% for the fourth quarter of 2019. Net interest margin was 3.44% for all of 2020, as compared to 4.08% for 2019. While pressures on loans yields continued in the quarter, the impact was somewhat offset by lower deposit costs. The following tables present the percentage of total average earning assets, by type and yield, for the periods presented:

	Percentage of Total Average Earning Assets						Yield
	Three Months Ended						Three Months Ended
	December 31,		September 30,		December 31,		December 31,		September 30,		December 31,
	2020		2020		2019		2020		2020		2019
Loans held for investment excluding PPP loans	74.79	%	74.70	%	83.87	%	4.20	%	4.30	%	5.11	%
PPP loans	9.59		10.01		—		3.26		2.27		—
Loans held for sale	2.98		2.90		3.11		3.15		3.31		3.58
Securities	9.72		9.74		10.95		2.25		2.41		2.92
Other	2.92		2.65		2.07		0.10		0.10		1.89
Total earning assets	100.00	%	100.00	%	100.00	%	3.77	%	3.77	%	4.75	%

	Percentage of Total Average Earning Assets				Yield
	Twelve Months Ended				Twelve Months Ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
Loans held for investment excluding PPP loans	77.13	%	83.15	%	4.47	%	5.31	%
PPP loans	6.80		—		2.75		—
Loans held for sale	2.86		3.25		3.37		5.07
Securities	10.15		11.28		2.57		3.02
Other	3.06		2.32		0.31		2.30
Total earning assets	100.00	%	100.00	%	4.00	%	4.98	%

The following tables present reported taxable equivalent net interest margin and yield on loans, including loans held for sale, for the periods presented (in thousands).

	Three Months Ended
	December 31,			September 30,			December 31,
	2020			2020			2019
Taxable equivalent net interest income	$	110,024		$	107,885		$	110,856
Average earning assets	$	13,059,967		$	13,034,422		$	11,277,000
Net interest margin	3.35		%	3.29		%	3.90		%
Taxable equivalent interest income on loans	$	116,540		$	115,908		$	124,919
Average loans, including loans held for sale	$	11,408,940		$	11,419,909		$	9,808,441
Loan yield	4.06		%	4.04		%	5.05		%

	Twelve Months Ended
	December 31,			December 31,
	2020			2019
Taxable equivalent net interest income	$	433,682		$	449,986
Average earning assets	$	12,622,461		$	11,028,040
Net interest margin	3.44		%	4.08		%
Taxable equivalent interest income on loans	$	470,877		$	505,411
Average loans, including loans held for sale	$	10,954,947		$	9,527,290
Loan yield	4.30		%	5.30		%

PPP loans reduced net interest margin and loan yield by 1 basis point and 10 basis points, respectively, in the fourth quarter of 2020 and 5 basis points and 13 basis points, respectively, for all of 2020.

The impact from interest income collected on problem loans and purchase accounting adjustments on loans to total interest income on loans, including loans held for sale, loan yield and net interest margin is shown in the following tables for the periods presented (in thousands).

	Three Months Ended
	December 31,			September 30,			December 31,
	2020			2020			2019
Net interest income collected on problem loans	$	128		$	282		$	152
Accretable yield recognized on purchased loans(1)	4,130			4,949			6,661
Total impact to interest income	$	4,258		$	5,231		$	6,813
Impact to total loan yield	0.15		%	0.18		%	0.28		%
Impact to net interest margin	0.13		%	0.16		%	0.24		%

(1) Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $1,872, $2,286 and $4,041 for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019, respectively. This additional interest income increased total loan yield by 7 basis points, 8 basis points and 16 basis points for the same periods, respectively, while increasing net interest margin by 6 basis points, 7 basis points and 14 basis points for the same periods, respectively.

	Twelve Months Ended
	December 31,			December 31,
	2020			2019
Net interest income collected on problem loans	$	1,011		$	4,042
Accretable yield recognized on purchased loans(1)	19,248			27,227
Total impact to interest income	$	20,259		$	31,269
Impact to total loan yield	0.18		%	0.33		%
Impact to net interest margin	0.16		%	0.28		%

(1) Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $8,077 and $14,635 for the twelve months ended December 31, 2020 and 2019, respectively. This additional interest income increased total loan yield by 7 basis points and 15 basis points for the same periods, respectively, while increasing net interest margin by 6 basis points and 13 basis points for the same periods, respectively.

For the fourth quarter of 2020, the cost of total deposits was 33 basis points, as compared to 40 basis points for the third quarter of 2020 and 76 basis points for the fourth quarter of 2019. The cost of total deposits was 47 basis points for the year ended December 31, 2020, as compared to 81 basis points for same period in 2019. The tables below present, by type, the Company’s funding sources and the total cost of each funding source for the periods presented:

	Percentage of Total Average Deposits and Borrowed Funds									Cost of Funds
	Three Months Ending									Three Months Ending
	December 31,			September 30,			December 31,			December 31,			September 30,			December 31,
	2020			2020			2019			2020			2020			2019
Noninterest-bearing demand	30.43	%		29.66	%		24.12	%		—	%		—	%		—	%
Interest-bearing demand	44.81			43.06			43.86			0.31			0.36			0.81
Savings	6.63			6.35			6.11			0.08			0.08			0.17
Time deposits	14.00			15.20			20.41			1.20			1.42			1.76
Borrowed funds	4.13			5.73			5.50			3.05			2.20			3.02
Total deposits and borrowed funds	100.00	%		100.00	%		100.00	%		0.44	%		0.50	%		0.89	%

	Percentage of Total Average Deposits and Borrowed Funds						Cost of Funds
	Twelve Months Ending						Twelve Months Ending
	December 31,			December 31,			December 31,			December 31,
	2020			2019			2020			2019
Noninterest-bearing demand	27.91	%		23.26	%		—	%		—	%
Interest-bearing demand	43.43			44.89			0.45			0.86
Savings	6.29			6.11			0.10			0.19
Time deposits	16.07			21.91			1.50			1.71
Borrowed funds	6.30			3.83			2.26			4.17
Total deposits and borrowed funds	100.00	%		100.00	%		0.59	%		0.93	%

Noninterest income for the fourth quarter of 2020 was $62.9 million, as compared to $70.9 million for the third quarter of 2020 and $37.5 million for the fourth quarter of 2019. Noninterest income for 2020 was $235.5 million, as compared to $153.3 million for 2019. Despite the decrease in mortgage banking income on a linked quarter basis, it continued to be a strong source of noninterest income for the Company with mortgage production of approximately $1.43 billion for the fourth quarter of 2020 and approximately $6.75 billion for the year. The following tables present the components of mortgage banking income for the periods presented (in thousands):

	Three Months Ended
	December 31, 2020			September 30, 2020			December 31, 2019
Gain on sales of loans, net	$	36,080		$	45,985		$	10,438
Fees, net	5,318			5,367			3,023
Mortgage servicing income, net	(3,606		)	(2,466		)	408
MSR valuation adjustment	1,968			828			1,296
Mortgage banking income, net	$	39,760		$	49,714		$	15,165

	Twelve Months Ended
	December 31, 2020			December 31, 2019
Gain on sales of loans, net	$	150,406		$	45,854
Fees, net	18,914			11,385
Mortgage servicing income, net	(7,095		)	2,493
MSR valuation adjustment	(11,726		)	(1,836		)
Mortgage banking income, net	$	150,499		$	57,896

Noninterest expense was $122.2 million for the fourth quarter of 2020, as compared to $116.5 million for the third quarter of 2020 and $95.6 million for the fourth quarter of 2019. Noninterest expense was $472.0 million for 2020, as compared to $374.2 million for 2019. As part of the continued focus on efficiency, in the fourth quarter the Company initiated a system-wide branch evaluation effort and offered an early retirement incentive to a select group of employees, participation in which was voluntary. The Company incurred $7.4 million in restructuring charges during the quarter, primarily attributable to the voluntary early retirement program, and these efforts are expected to allow for a more efficient use of the Company’s workforce and branch network moving into 2021. The Company also incurred $2.0 million in swap termination charges that will reduce interest expense over the remaining terms of two swaps, which were originally scheduled to mature in June 2022 and 2023. The Company recorded a $500 thousand provision for unfunded commitments in other noninterest expense in the fourth quarter of 2020, as compared to a $2.7 million provision for unfunded commitments in the third quarter of 2020, bringing the total provision for unfunded commitments to $9.2 million for 2020.

Asset Quality Metrics
At December 31, 2020, the Company’s credit quality metrics remained strong. The Company has maintained contact with its borrowers and continues to focus on those industries more highly impacted by the pandemic, primarily the hospitality and healthcare industries. To provide necessary relief to the Company’s borrowers – both consumer and commercial clients – the Company established loan deferral programs at the onset of the pandemic, which allowed qualified clients to defer principal and interest payments. The Company continues to monitor loans remaining on deferral, and as of December 31, 2020, approximately 1.5% of the Company’s loan portfolio (excluding PPP loans) was in deferral, down from approximately 5.1% as of September 30, 2020.

The Company’s credit quality in future quarters may be impacted by both external and internal factors related to the pandemic in addition to those factors that traditionally affect credit quality. External factors outside the Company’s control include items such as the pace at which the COVID-19 vaccine is administered to residents in the Company’s markets and the United States generally, federal, state and local government measures, the re-imposition of “shelter-in-place” orders, and the economic impact of government programs, including additional fiscal stimulus and the re-opening of the Paycheck Protection Program. Internal factors that will potentially impact credit quality include items such as the Company’s loan deferral programs, involvement in government offered programs and the related financial impact of these programs. The impact of each of these items are unknown at this time and could materially and adversely impact future credit quality.

The table below shows nonperforming assets, which includes nonperforming loans (loans 90 days or more past due and nonaccrual loans) and other real estate owned, as well as early stage delinquencies (loans 30-89 days past due) for the periods presented (in thousands).

	December 31, 2020									December 31, 2019
	Non Purchased			Purchased			Total			Non Purchased			Purchased			Total
Nonaccrual loans	$	20,369		$	31,051		$	51,420		$	21,509		$	7,038		$	28,547
Loans 90 days past due or more	3,783			267			4,050			3,458			4,317			7,775
Nonperforming loans	$	24,152		$	31,318		$	55,470		$	24,967		$	11,355		$	36,322
Other real estate owned	2,045			3,927			5,972			2,762			5,248			8,010
Nonperforming assets	$	26,197		$	35,245		$	61,442		$	27,729		$	16,603		$	44,332
Nonperforming loans/total loans							0.51		%							0.37		%
Nonperforming loans/total loans excluding PPP loans							0.57		%							—
Nonperforming assets/total assets							0.41		%							0.33		%
Nonperforming assets/total assets excluding PPP loans							0.45		%							—
Loans 30-89 days past due	$	17,635		$	8,651		$	26,286		$	22,781		$	14,887		$	37,668
Loans 30-89 days past due/total loans							0.24		%							0.39		%

The implementation of CECL on January 1, 2020, which required purchased credit deteriorated loans to be classified as nonaccrual based on performance, contributed approximately $3.3 million as of December 31, 2020 to the increase in purchased nonaccrual loans.

The table below shows the increase in the allowance for credit losses and the reserve for unfunded commitments since the day one transition to CECL on January 1, 2020 to the ending allowance at December 31, 2020 (in thousands).

	January 1, 2020			March 31, 2020			June 30, 2020			September 30, 2020			December 31, 2020
Allowance for credit losses on loans	$	94,647		$	120,185		$	145,387		$	168,098		$	176,144
Allowance for credit losses on deferred interest	—			—			—			—			1,500
Reserve for unfunded commitments	11,336			14,735			17,335			20,035			20,535
Total reserves	$	105,983		$	134,920		$	162,722		$	188,133		$	198,179
Allowance for credit losses on loans/total loans	0.98		%	1.23		%	1.32		%	1.52		%	1.61		%
Allowance for credit losses on loans/total loans excluding PPP loans	—			—			1.50		%	1.72		%	1.80		%
Reserve for unfunded commitments/total unfunded commitments	0.47		%	0.60		%	0.66		%	0.73		%	0.73		%

The Company recorded a provision for credit losses of $10.5 million ($1.5 million of which was allocated to deferred interest) and a reserve for unfunded commitments, which is recorded in other noninterest expense (and discussed above), of $500 thousand for the fourth quarter of 2020. Net loan charge-offs were $954 thousand, or 0.03% of average loans held for investment on an annualized basis. Although there was a meaningful decrease in credit costs during the quarter, the allowance for credit losses on loans remains elevated due to qualitative factors related to the uncertainty concerning the COVID-19 pandemic, with limited GDP growth (in relation to pre-pandemic levels) and elevated unemployment rates projected into 2021 and 2022. Even though economic projections continue to trend in a positive direction, there remains considerable uncertainty.

The provision for credit losses recorded during the fourth quarter of 2019 was $3.0 million with net charge-offs of $1.6 million, or 0.07% of average loans held for sale on an annualized basis. The Company’s coverage ratio, or the allowance for credit losses to nonperforming loans, was 317.55% as of December 31, 2020, as compared to 367.05% as of September 30, 2020 and 143.61% as of December 31, 2019.

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 27, 2021.

The webcast can be accessed through Renasant’s investor relations website at investors.renasant.com or https://services.choruscall.com/links/rnst210127.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2020 Fourth Quarter Earnings Conference Call and Webcast. International participants should dial 1-412-902-4145 to access the conference call.

The webcast will be archived on investors.renasant.com beginning one hour after the call and will remain accessible for one year. Replays can also be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 10151152 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 10, 2021.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 116-year-old financial services institution. Renasant has assets of approximately $14.9 billion and operates more than 200 banking, lending, mortgage, wealth management and insurance offices in Mississippi, Tennessee, Alabama, Florida, Georgia, North Carolina and South Carolina.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

This press release may contain, or incorporate by reference, statements about Renasant Corporation that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “projects,” “anticipates,” “intends,” “estimates,” “plans,” “potential,” “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.

Currently, the most important factor that could cause the Company’s actual results to differ materially from those in forward-looking statements is the continued impact of the COVID-19 pandemic and related governmental measures to respond to the pandemic on the United States economy and the economies of the markets in which the Company operates and its participation in government programs related to the pandemic. In this press release, the Company has addressed the historical impact of the pandemic on the operations of the Company and set forth certain expectations regarding the COVID-19 pandemic’s future impact on the Company’s business, financial condition, results of operations, liquidity, asset quality, capital, cash flows and prospects. The Company believes that its statements regarding future events and conditions in light of the COVID-19 pandemic are reasonable, but these statements are based on assumptions regarding, among other things, how long the pandemic will continue, the pace at which the COVID-19 vaccine can be distributed and administered to residents of the markets the Company serves and the United States generally, the duration, extent and effectiveness of the governmental measures implemented to contain the pandemic and ameliorate its impact on businesses and individuals throughout the United States, and the impact of the pandemic and the government’s virus containment measures on national and local economies, all of which are out of the Company’s control. If the Company’s assumptions underlying its statements about future events prove to be incorrect, the Company’s business, financial condition, results of operations, liquidity, asset quality, capital, cash flows and prospects may be materially different from what is presented in the Company’s forward-looking statements.

Important factors other than the COVID-19 pandemic currently known to management that could cause 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, such as the adoption of the CECL model as of January 1, 2020; (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 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. The COVID-19 pandemic has exacerbated, and is likely to continue to exacerbate, the impact of any of these factors on the Company.  

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 investors.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 contains non-GAAP financial measures, namely, earnings, with exclusions, return on average tangible shareholders’ equity, return on average tangible assets, the ratio of tangible equity to tangible assets (commonly referred to as the “tangible capital ratio”), tangible book value per share and the adjusted efficiency ratio. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and/or certain charges (such as, when applicable, COVID-19 related expenses, restructuring charges, merger and conversion expenses, debt prepayment penalties, swap termination charges and asset valuation adjustments) with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof. 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 (as discussed earlier in this release) 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. 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 merger and conversion expenses, restructuring charges and COVID-19 related expenses 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 table at the end of this release under the caption “Reconciliation of GAAP to Non-GAAP.”

None of the non-GAAP financial information that the Company has included in this release is 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. 

Contacts:	For Media:	For Financials:
	John Oxford	James C. Mabry IV
	Senior Vice President	Executive Vice President
	Director of Marketing	Chief Financial Officer
	(662) 680-1219	(662) 680-1281
	joxford@renasant.com	jim.mabry@renasant.com

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																																					Q4 2020-				Twelve Months Ended
					2020																2019																Q4 2019				December 31,
					Fourth				Third				Second				First				Fourth				Third				Second				First				Percent												Percent
					Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Variance				2020				2019				Variance
Statement of earnings
Interest income - taxable equivalent basis					$	123,823			$	123,677			$	125,630			$	131,887			$	135,119			$	135,927			$	139,285			$	138,578			(8.36	)	%		$	505,017			$	548,909			(8.00	)	%
Interest income					$	121,926			$	122,078			$	123,955			$	130,173			$	133,148			$	134,476			$	137,862			$	137,094			(8.43	)			$	498,132			$	542,580			(8.19	)
Interest expense					13,799				15,792				18,173				23,571				24,263				25,651				25,062				23,947				(43.13	)			71,335				98,923				(27.89	)
	Net interest income				108,127				106,286				105,782				106,602				108,885				108,825				112,800				113,147				(0.70	)			426,797				443,657				(3.80	)
Provision for credit losses					10,500				23,100				26,900				26,350				2,950				1,700				900				1,500				255.93				86,850				7,050				1,131.91
	Net interest income after provision				97,627				83,186				78,882				80,252				105,935				107,125				111,900				111,647				(7.84	)			339,947				436,607				(22.14	)
Service charges on deposit accounts					7,938				7,486				6,832				9,070				9,273				8,992				8,605				9,102				(14.40	)			31,326				35,972				(12.92	)
Fees and commissions on loans and deposits					3,616				3,402				2,971				3,054				2,822				3,090				7,047				6,471				28.14				13,043				19,430				(32.87	)
Insurance commissions and fees					2,193				2,681				2,125				1,991				2,105				2,508				2,190				2,116				4.18				8,990				8,919				0.80
Wealth management revenue					4,314				4,364				3,824				4,002				3,920				3,588				3,601				3,324				10.05				16,504				14,433				14.35
Securities gains (losses)					15				—				31				—				—				343				-8				13				—				46				348				(86.78	)
Mortgage banking income					39,760				49,714				45,490				15,535				15,165				15,710				16,620				10,401				162.18				150,499				57,896				159.95
Other					5,028				3,281				2,897				3,918				4,171				3,722				3,905				4,458				20.55				15,124				16,256				(6.96	)
	Total noninterest income				62,864				70,928				64,170				37,570				37,456				37,953				41,960				35,885				67.83				235,532				153,254				53.69
Salaries and employee benefits					74,432				75,406				79,361				73,189				67,684				65,425				60,325				57,350				9.97				302,388				250,784				20.58
Data processing					5,373				5,259				5,047				5,006				5,095				4,980				4,698				4,906				5.46				20,685				19,679				5.11
Occupancy and equipment					13,153				13,296				13,511				14,120				13,231				12,943				11,544				11,835				(0.59	)			54,080				49,553				9.14
Other real estate					683				1,033				620				418				339				418				252				1,004				101.47				2,754				2,013				36.81
Amortization of intangibles					1,659				1,733				1,834				1,895				1,946				1,996				2,053				2,110				(14.75	)			7,121				8,105				(12.14	)
Merger and conversion related expenses					—				—				—				—				76				24				179				—				(100.00	)			—				279				(100.00	)
Restructuring charges					7,365				—				—				—				—				—				—				—				—				7,365				—				—
Swap termination charges					2,040				—				—				—				—				—				—				—				—				2,040				—				—
Debt prepayment penalty					3				28				90				—				—				54				—				—				—				121				54				124.07
Other					17,444				19,755				17,822				20,413				7,181				10,660				14,239				11,627				142.92				75,434				43,707				72.59
	Total noninterest expense				122,152				116,510				118,285				115,041				95,552				96,500				93,290				88,832				27.84				471,988				374,174				26.14
Income before income taxes					38,339				37,604				24,767				2,781				47,839				48,578				60,570				58,700				(19.86	)			103,491				215,687				(52.02	)
Income taxes					6,818				7,612				4,637				773				9,424				11,132				13,945				13,590				(27.65	)			19,840				48,091				(58.74	)
	Net income				$	31,521			$	29,992			$	20,130			$	2,008			$	38,415			$	37,446			$	46,625			$	45,110			(17.95	)			$	83,651			$	167,596			(50.09	)
Basic earnings per share					$	0.56			$	0.53			$	0.36			$	0.04			$	0.67			$	0.65			$	0.80			$	0.77			(16.42	)			$	1.49			$	2.89			(48.44	)
Diluted earnings per share					0.56				0.53				0.36				0.04				0.67				0.64				0.80				0.77				(16.42	)			1.48				2.88				(48.61	)
Average basic shares outstanding					56,197,847				56,185,884				56,165,452				56,534,816				57,153,160				58,003,215				58,461,024				58,585,517				(1.67	)			56,270,566				58,046,716				(3.06	)
Average diluted shares outstanding					56,489,809				56,386,153				56,325,476				56,706,289				57,391,876				58,192,419				58,618,976				58,730,535				(1.57	)			56,468,165				58,226,686				(3.02	)
Common shares outstanding					56,200,487				56,193,705				56,181,962				56,141,018				56,855,002				57,455,306				58,297,670				58,633,630				(1.15	)			56,200,487				56,855,002				(1.15	)
Cash dividend per common share					$	0.22			$	0.22			$	0.22			$	0.22			$	0.22			$	0.22			$	0.22			$	0.21			—				$	0.88			$	0.87			1.15
Performance ratios
Return on avg shareholders’ equity					5.88		%		5.63		%		3.85		%		0.38		%		7.15		%		6.97		%		8.90		%		8.86		%						3.96		%		7.95		%
Return on avg tangible s/h’s equity (non-GAAP) (1)					11.26		%		10.87		%		7.72		%		1.20		%		13.75		%		13.38		%		17.15		%		17.41		%						7.83		%		15.36		%
Return on avg assets					0.84		%		0.80		%		0.55		%		0.06		%		1.16		%		1.16		%		1.47		%		1.44		%						0.58		%		1.30		%
Return on avg tangible assets (non-GAAP)(2)					0.94		%		0.89		%		0.63		%		0.11		%		1.30		%		1.30		%		1.64		%		1.61		%						0.66		%		1.46		%
Net interest margin (FTE)					3.35		%		3.29		%		3.38		%		3.75		%		3.90		%		3.98		%		4.19		%		4.27		%						3.44		%		4.08		%
Yield on earning assets (FTE)					3.77		%		3.77		%		3.95		%		4.57		%		4.75		%		4.91		%		5.11		%		5.16		%						4.00		%		4.98		%
Cost of funding					0.44		%		0.50		%		0.59		%		0.85		%		0.89		%		0.97		%		0.96		%		0.92		%						0.59		%		0.93		%
Average earning assets to average assets					87.66		%		87.31		%		86.88		%		86.17		%		85.71		%		85.58		%		85.72		%		85.58		%						87.03		%		85.65		%
Average loans to average deposits					91.83		%		93.31		%		93.35		%		93.83		%		92.43		%		89.13		%		89.13		%		89.33		%						93.05		%		90.01		%
Noninterest income (less securities gains/
losses) to average assets					1.68		%		1.89		%		1.75		%		1.12		%		1.13		%		1.16		%		1.32		%		1.14		%						1.62		%		1.19		%
Noninterest expense (less debt prepayment penalties/
/merger-related expenses) to avergage assets					3.26		%		3.10		%		3.23		%		3.43		%		2.88		%		2.98		%		2.93		%		2.83		%						3.25		%		2.91		%
Net overhead ratio					1.58		%		1.21		%		1.48		%		2.31		%		1.75		%		1.82		%		1.61		%		1.69		%						1.63		%		1.71		%
Efficiency ratio (FTE)					70.65		%		65.16		%		68.92		%		78.86		%		64.43		%		65.10		%		59.73		%		59.02		%						70.53		%		62.03		%
Adjusted efficiency ratio (FTE) (non-GAAP) (4)					64.35		%		62.63		%		60.89		%		68.73		%		63.62		%		62.53		%		58.30		%		57.62		%						64.00		%		60.48		%
RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																																					Q4 2020 -				As of
					2020																2019																Q4 2019				December 31,
					Fourth				Third				Second				First				Fourth				Third				Second				First				Percent												Percent
					Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Variance				2020				2019				Variance
Average Balances
Total assets					$	14,898,055			$	14,928,159			$	14,706,027			$	13,472,550			$	13,157,843			$	12,846,131			$	12,764,669			$	12,730,939			13.23		%		$	14,503,449			$	12,875,986			12.64		%
Earning assets					13,059,967				13,034,422				12,776,643				11,609,477				11,277,000				10,993,645				10,942,492				10,895,205				15.81				12,622,461				11,028,040				14.46
Securities					1,269,108				1,269,565				1,295,539				1,292,875				1,234,718				1,227,678				1,262,271				1,253,224				2.79				1,281,704				1,244,376				3.00
Loans held for sale					389,435				378,225				340,582				336,829				350,783				385,437				353,103				345,264				11.02				361,391				358,735				0.74
Loans, net of unearned income					11,019,505				11,041,684				10,616,147				9,687,285				9,457,658				9,109,252				9,043,788				9,059,802				16.51				10,593,556				9,168,555				15.54
Intangibles					970,624				972,394				974,237				975,933				977,506				975,306				974,628				976,820				(0.70	)			973,287				976,065				(0.28	)
Noninterest-bearing deposits					3,808,595				3,723,059				3,439,634				2,586,963				2,611,265				2,500,810				2,395,899				2,342,406				45.85				3,391,619				2,463,436				37.68
Interest-bearing deposits					8,190,997				8,109,844				7,933,035				7,737,615				7,620,602				7,719,510				7,750,986				7,799,892				7.48				7,993,733				7,722,247				3.52
Total deposits					11,999,592				11,832,903				11,372,669				10,324,578				10,231,867				10,220,320				10,146,885				10,142,298				17.28				11,385,352				10,185,683				11.78
Borrowed funds					516,414				719,800				1,000,789				829,320				596,101				308,931				354,234				363,140				(13.37	)			765,769				405,975				88.62
Shareholders' equity					2,132,375				2,119,500				2,101,092				2,105,143				2,131,342				2,131,537				2,102,093				2,065,370				0.05				2,114,590				2,107,832				0.32
																																					Q4 2020 -				As of
					2020																2019																Q4 2019				December 31,
					Fourth				Third				Second				First				Fourth				Third				Second				First				Percent												Percent
					Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Variance				2020				2019				Variance
Balances at period end
Total assets					$	14,929,666			$	14,808,933			$	14,897,207			$	13,890,550			$	13,400,618			$	13,039,674			$	12,892,653			$	12,862,395			11.41		%		$	14,929,666			$	13,400,618			11.41		%
Earning assets					13,151,707				12,984,651				13,041,846				11,980,482				11,522,388				11,145,052				11,064,957				11,015,535				14.14				13,151,707				11,522,388				14.14
Securities					1,343,457				1,293,388				1,303,494				1,359,129				1,290,613				1,238,577				1,268,280				1,255,353				4.09				1,343,457				1,290,613				4.09
Loans held for sale					417,771				399,773				339,747				448,797				318,272				392,448				461,681				318,563				31.26				417,771				318,272				31.26
Non purchased loans					9,419,540				9,424,224				9,206,101				7,802,404				7,587,974				7,031,818				6,704,288				6,565,599				24.14				9,419,540				7,587,974				24.14
Purchased loans					1,514,107				1,660,514				1,791,203				1,966,973				2,101,664				2,281,966				2,350,366				2,522,694				(27.96	)			1,514,107				2,101,664				(27.96	)
	Total loans				10,933,647				11,084,738				10,997,304				9,769,377				9,689,638				9,313,784				9,054,654				9,088,293				12.84				10,933,647				9,689,638				12.84
Intangibles					969,823				971,481				973,214				975,048				976,943				978,390				973,673				975,726				(0.73	)			969,823				976,943				(0.73	)
Noninterest-bearing deposits					3,685,048				3,758,242				3,740,296				2,642,059				2,551,770				2,607,056				2,408,984				2,366,223				44.41				3,685,048				2,551,770				44.41
Interest-bearing deposits					8,374,033				8,175,898				8,106,062				7,770,367				7,661,398				7,678,980				7,781,077				7,902,689				9.30				8,374,033				7,661,398				9.30
	Total deposits				12,059,081				11,934,140				11,846,358				10,412,426				10,213,168				10,286,036				10,190,061				10,268,912				18.07				12,059,081				10,213,168				18.07
Borrowed funds					496,519				517,706				718,490				1,179,631				865,598				433,705				401,934				350,859				(42.64	)			496,519				865,598				(42.64	)
Shareholders’ equity					2,132,578				2,104,300				2,082,946				2,070,512				2,125,689				2,119,659				2,119,696				2,088,877				0.32				2,132,578				2,125,689				0.32
Market value per common share					33.68				22.72				24.90				21.84				35.42				35.01				35.94				33.85				(4.91	)			33.68				35.42				(4.91	)
Book value per common share					37.95				37.45				37.07				36.88				37.39				36.89				36.36				35.63				1.50				37.95				37.39				1.50
Tangible book value per common share					20.69				20.16				19.75				19.51				20.20				19.86				19.66				18.98				2.43				20.69				20.20				2.43
Shareholders’ equity to assets (actual)					14.28		%		14.21		%		13.98		%		14.91		%		15.86		%		16.26		%		16.44		%		16.24		%						14.28		%		15.86		%
Tangible capital ratio (non-GAAP)(3)					8.33		%		8.19		%		7.97		%		8.48		%		9.25		%		9.46		%		9.62		%		9.36		%						8.33		%		9.25		%
Leverage ratio					9.37		%		9.17		%		9.12		%		9.90		%		10.37		%		10.56		%		10.65		%		10.44		%						9.37		%		10.37		%
Common equity tier 1 capital ratio					10.93		%		10.80		%		10.69		%		10.63		%		11.12		%		11.36		%		11.64		%		11.49		%						10.93		%		11.12		%
Tier 1 risk-based capital ratio					11.91		%		11.79		%		11.69		%		11.63		%		12.14		%		12.40		%		12.69		%		12.55		%						11.91		%		12.14		%
Total risk-based capital ratio					15.07		%		14.89		%		13.72		%		13.44		%		13.78		%		14.07		%		14.62		%		14.57		%						15.07		%		13.78		%
RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																																					Q4 2020 -				As of
					2020																2019																Q4 2019				December 31,
					Fourth				Third				Second				First				Fourth				Third				Second				First				Percent												Percent
					Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Variance				2020				2019				Variance
Non purchased loans
Commercial, financial, agricultural					$	1,231,768			$	1,137,321			$	1,134,965			$	1,144,004			$	1,052,353			$	988,867			$	930,598			$	921,081			17.05		%		$	1,231,768			$	1,052,353			17.05		%
SBA Paycheck Protection Program					1,128,703				1,307,972				1,281,278				—				—				—				—				—				—				1,128,703				—				—
Lease financing					75,862				82,928				80,779				84,679				81,875				69,953				59,158				58,651				(7.34	)			75,862				81,875				(7.34	)
Real estate - construction					827,152				738,873				756,872				745,066				774,901				764,589				716,129				651,119				6.74				827,152				774,901				6.74
Real estate - 1-4 family mortgages					2,356,564				2,369,292				2,342,987				2,356,627				2,350,126				2,235,908				2,160,617				2,114,908				0.27				2,356,564				2,350,126				0.27
Real estate - commercial mortgages					3,649,629				3,610,642				3,400,718				3,242,172				3,128,876				2,809,470				2,741,402				2,726,186				16.64				3,649,629				3,128,876				16.64
Installment loans to individuals					149,862				177,195				208,502				229,856				199,843				163,031				96,384				93,654				(25.01	)			149,862				199,843				(25.01	)
Loans, net of unearned income					$	9,419,540			$	9,424,223			$	9,206,101			$	7,802,404			$	7,587,974			$	7,031,818			$	6,704,288			$	6,565,599			24.14				$	9,419,540			$	7,587,974			24.14
Purchased loans
Commercial, financial, agricultural					$	176,513			$	202,768			$	225,355			$	280,572			$	315,619			$	339,693			$	374,478			$	387,376			(44.07	)			$	176,513			$	315,619			(44.07	)
Real estate - construction					30,952				34,246				34,236				42,829				51,582				52,106				65,402				89,954				(39.99	)			30,952				51,582				(39.99	)
Real estate - 1-4 family mortgages					341,744				391,102				445,526				489,674				516,487				561,725				604,855				654,265				(33.83	)			341,744				516,487				(33.83	)
Real estate - commercial mortgages					905,223				966,367				1,010,035				1,066,536				1,115,389				1,212,905				1,276,567				1,357,446				(18.84	)			905,223				1,115,389				(18.84	)
Installment loans to individuals					59,675				66,031				76,051				87,362				102,587				115,537				29,064				33,653				(41.83	)			59,675				102,587				(41.83	)
Loans, net of unearned income					$	1,514,107			$	1,660,514			$	1,791,203			$	1,966,973			$	2,101,664			$	2,281,966			$	2,350,366			$	2,522,694			(27.96	)			$	1,514,107			$	2,101,664			(27.96	)
Asset quality data
Non purchased assets
Nonaccrual loans					$	20,369			$	18,831			$	16,591			$	21,384			$	21,509			$	15,733			$	14,268			$	12,507			(5.30	)			$	20,369			$	21,509			(5.30	)
Loans 90 past due or more					3,783				1,826				3,993				4,459				3,458				7,325				4,175				1,192				9.40				3,783				3,458				9.40
Nonperforming loans					24,152				20,657				20,584				25,843				24,967				23,058				18,443				13,699				(3.26	)			24,152				24,967				(3.26	)
Other real estate owned					2,045				3,576				4,694				3,241				2,762				1,975				3,475				4,223				(25.96	)			2,045				2,762				(25.96	)
Nonperforming assets					$	26,197			$	24,233			$	25,278			$	29,084			$	27,729			$	25,033			$	21,918			$	17,922			(5.52	)			$	26,197			$	27,729			(5.52	)
Purchased assets
Nonaccrual loans					$	31,051			$	24,821			$	21,361			$	19,090			$	7,038			$	6,123			$	7,250			$	7,828			341.19				$	31,051			$	7,038			341.19
Loans 90 past due or more					267				318				2,158				5,104				4,317				7,034				7,687				5,436				(93.82	)			267				4,317				(93.82	)
Nonperforming loans					31,318				25,139				23,519				24,194				11,355				13,157				14,937				13,264				175.81				31,318				11,355				175.81
Other real estate owned					3,927				4,576				4,431				5,430				5,248				6,216				5,258				5,932				(25.17	)			3,927				5,248				(25.17	)
Nonperforming assets					$	35,245			$	29,715			$	27,950			$	29,624			$	16,603			$	19,373			$	20,195			$	19,196			112.28				$	35,245			$	16,603			112.28
Net loan charge-offs (recoveries)					$	954			$	389			$	1,698			$	811			$	1,602			$	945			$	676			$	691			(40.45	)			$	3,852			$	3,914			(1.58	)
Allowance for credit losses on loans					$	176,144			$	168,098			$	145,387			$	120,185			$	52,162			$	50,814			$	50,059			$	49,835			237.69				$	176,144			$	52,162			237.69
Annualized net loan charge-offs / average loans					0.03		%		0.01		%		0.06		%		0.03		%		0.07		%		0.04		%		0.03		%		0.03		%						0.04		%		0.04		%
Nonperforming loans / total loans*					0.51		%		0.41		%		0.40		%		0.51		%		0.37		%		0.39		%		0.37		%		0.30		%						0.51		%		0.37		%
Nonperforming assets / total assets*					0.41		%		0.36		%		0.36		%		0.42		%		0.33		%		0.34		%		0.33		%		0.29		%						0.41		%		0.33		%
Allowance for credit losses on loans / total loans*					1.61		%		1.52		%		1.32		%		1.23		%		0.54		%		0.55		%		0.55		%		0.55		%						1.61		%		0.54		%
Allowance for credit losses on loans / nonperforming loans*					317.55		%		367.05		%		329.65		%		240.19		%		143.61		%		140.31		%		149.97		%		184.83		%						317.55		%		143.61		%
Nonperforming loans / total loans**					0.26		%		0.22		%		0.22		%		0.33		%		0.33		%		0.33		%		0.28		%		0.21		%						0.26		%		0.33		%
Nonperforming assets / total assets**					0.18		%		0.16		%		0.17		%		0.21		%		0.21		%		0.19		%		0.17		%		0.14		%						0.18		%		0.21		%
*Based on all assets (includes purchased assets)
**Excludes all purchased assets

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
		Three Months Ending																																	For The Twelve Months Ending
		December 31, 2020											September 30, 2020											December 31, 2019											December 31, 2020											December 31, 2019
		Average				Interest				Yield/			Average				Interest				Yield/			Average				Interest				Yield/				Average				Interest		Yield/				Average				Interest		Yield/
		Balance				Income/				Rate			Balance				Income/				Rate			Balance				Income/				Rate				Balance				Income/		Rate				Balance				Income/		Rate
						Expense											Expense											Expense												Expense										Expense
Assets
Interest-earning assets:
Loans
Non purchased		$	8,167,922			$	81,626			3.98	%		$	8,012,741			$	81,281			4.04	%		$	7,258,517			$	87,482			4.78	%		$	7,927,817			$	333,296		4.20	%		$	6,784,132			$	337,672		4.98	%
Purchased		1,598,593				21,560				5.37	%		1,723,714				24,034				5.55	%		2,199,141				34,270				6.18	%		1,807,354				101,785			5.63	%		2,384,423				149,568			6.27	%
SBA Paycheck Protection Program		1,252,990				10,271				3.26	%		1,305,229				7,449				2.27	%		—				—				—	%		858,385				23,605			2.75	%		—				—			—	%
Total loans		11,019,505				113,457				4.10	%		11,041,684				112,764				4.06	%		9,457,658				121,752				5.11	%		10,593,556				458,686			4.33	%		9,168,555				487,240			5.31	%
Loans held for sale		389,435				3,083				3.15	%		378,225				3,144				3.31	%		350,783				3,167				3.58	%		361,391				12,191			3.37	%		358,735				18,171			5.07	%
Securities:
Taxable(1)		985,695				4,953				2.00	%		1,003,886				5,473				2.17	%		1,018,076				6,994				2.73	%		1,021,999				24,102			2.36	%		1,051,124				29,786			2.83	%
Tax-exempt		283,413				2,238				3.14	%		265,679				2,205				3.30	%		216,642				2,093				3.83	%		259,705				8,848			3.41	%		193,252				7,821			4.05	%
Total securities		1,269,108				7,191				2.25	%		1,269,565				7,678				2.41	%		1,234,718				9,087				2.92	%		1,281,704				32,950			2.57	%		1,244,376				37,607			3.02	%
Interest-bearing balances with banks		381,919				92				0.10	%		344,948				91				0.10	%		233,841				1,113				1.89	%		385,810				1,190			0.31	%		256,374				5,891			2.30	%
Total interest-earning assets		13,059,967				123,823				3.77	%		13,034,422				123,677				3.77	%		11,277,000				135,119				4.75	%		12,622,461				505,017			4.00	%		11,028,040				548,909			4.98	%
Cash and due from banks		196,552											210,278											176,582											201,815										179,991
Intangible assets		970,624											972,394											977,506											973,287										976,065
Other assets		670,912											711,065											726,755											705,886										691,890
Total assets		$	14,898,055										$	14,928,159										$	13,157,843										$	14,503,449									$	12,875,986
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand(2)		$	5,607,906			$	4,380			0.31	%		$	5,405,085			$	4,839			0.36	%		$	4,749,018			$	9,653			0.81	%		$	5,277,374			$	23,995		0.45	%		$	4,754,201			$	40,991		0.86	%
Savings deposits		830,304				165				0.08	%		796,841				167				0.08	%		661,362				282				0.17	%		764,146				758			0.10	%		647,271				1,258			0.19	%
Time deposits		1,752,787				5,296				1.20	%		1,907,918				6,804				1.42	%		2,210,222				9,783				1.76	%		1,952,213				29,263			1.50	%		2,320,775				39,746			1.71	%
Total interest-bearing deposits		8,190,997				9,841				0.48	%		8,109,844				11,810				0.58	%		7,620,602				19,718				1.03	%		7,993,733				54,016			0.68	%		7,722,247				81,995			1.06	%
Borrowed funds		516,414				3,958				3.05	%		719,800				3,982				2.20	%		596,101				4,545				3.02	%		765,769				17,319			2.26	%		405,975				16,928			4.17	%
Total interest-bearing liabilities		8,707,411				13,799				0.63	%		8,829,644				15,792				0.71	%		8,216,703				24,263				1.17	%		8,759,502				71,335			0.81	%		8,128,222				98,923			1.22	%
Noninterest-bearing deposits		3,808,595											3,723,059											2,611,265											3,391,619										2,463,436
Other liabilities		249,674											255,956											198,533											237,738										176,496
Shareholders’ equity		2,132,375											2,119,500											2,131,342											2,114,590										2,107,832
Total liabilities and shareholders’ equity		$	14,898,055										$	14,928,159										$	13,157,843										$	14,503,449									$	12,875,986
Net interest income/ net interest margin						$	110,024			3.35	%						$	107,885			3.29	%						$	110,856			3.90	%						$	433,682		3.44	%						$	449,986		4.08	%
Cost of funding										0.44	%										0.50	%										0.89	%									0.59	%									0.93	%
Cost of total deposits										0.33	%										0.40	%										0.76	%									0.47	%									0.81	%
(1) U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which we operate.
(2) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
					RECONCILIATION OF GAAP TO NON-GAAP
																																							Twelve Months Ended
					2020																2019																		December 31,
					Fourth				Third				Second				First				Fourth				Third				Second				First
					Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Quarter				Quarter						2020				2019
Net income (GAAP)					$	31,521			$	29,992			$	20,130			$	2,008			$	38,415			$	37,446			$	46,625			$	45,110					$	83,651			$	167,596
	Amortization of intangibles				1,659				1,733				1,834				1,895				1,946				1,996				2,053				2,110						7,121				8,105
	Tax effect of adjustment noted above (A)				(297		)		(374		)		(335		)		(527		)		(383		)		(457		)		(473		)		(488		)				(1,382		)		(1,807		)
Tangible net income (non-GAAP)					$	32,883			$	31,351			$	21,629			$	3,376			$	39,978			$	38,985			$	48,205			$	46,732					$	89,390			$	173,894
Net income (GAAP)					$	31,521			$	29,992			$	20,130			$	2,008			$	38,415			$	37,446			$	46,625			$	45,110					$	83,651			$	167,596
	Merger & conversion expenses				—				—				—				—				76				24				179				—						—				279
	Debt prepayment penalties				3				28				90				—				—				54				—				—						121				54
	MSR valuation adjustment				(1,968		)		(828		)		4,951				9,571				(1,296		)		3,132				—				—						11,726				1,836
	Restructuring charges				7,365				—				—				—				—				—				—				—						7,365				—
	Swap termination charges				2,040				—				—				—				—				—				—				—						2,040				—
	COVID-19 related expenses				613				570				6,257				2,903				—				—				—				—						10,343				—
	Tax effect of adjustment noted above (A)				(1,443		)		50				(2,065		)		(3,467		)		241				(736		)		(41		)		—						(6,131		)		(484		)
Net income with exclusions (non-GAAP)					$	38,131			$	29,812			$	29,363			$	11,015			$	37,436			$	39,920			$	46,763			$	45,110					$	109,115			$	169,281
Average shareholders’ equity (GAAP)					$	2,132,375			$	2,119,500			$	2,101,092			$	2,105,143			$	2,131,342			$	2,131,537			$	2,102,093			$	2,065,370					$	2,114,590			$	2,107,832
	Intangibles				970,624				972,394				974,237				975,933				977,506				975,306				974,628				976,820						973,287				976,065
Average tangible s/h’s equity (non-GAAP)					$	1,161,751			$	1,147,106			$	1,126,855			$	1,129,210			$	1,153,836			$	1,156,231			$	1,127,465			$	1,088,550					$	1,141,303			$	1,131,767
Average total assets (GAAP)					$	14,898,055			$	14,928,159			$	14,706,027			$	13,472,550			$	13,157,843			$	12,846,131			$	12,764,669			$	12,730,939					$	14,503,449			$	12,875,986
	Intangibles				970,624				972,394				974,237				975,933				977,506				975,306				974,628				976,820						973,287				976,065
Average tangible assets (non-GAAP)					$	13,927,431			$	13,955,765			$	13,731,790			$	12,496,617			$	12,180,337			$	11,870,825			$	11,790,041			$	11,754,119					$	13,530,162			$	11,899,921
Actual shareholders’ equity (GAAP)					$	2,132,578			$	2,104,300			$	2,082,946			$	2,070,512			$	2,125,689			$	2,119,659			$	2,119,696			$	2,088,877					$	2,132,578			$	2,125,689
	Intangibles				969,823				971,481				973,214				975,048				976,943				978,390				973,673				975,726						969,823				976,943
Actual tangible s/h’s equity (non-GAAP)					$	1,162,755			$	1,132,819			$	1,109,732			$	1,095,464			$	1,148,746			$	1,141,269			$	1,146,023			$	1,113,151					$	1,162,755			$	1,148,746
Actual total assets (GAAP)					$	14,929,666			$	14,808,933			$	14,897,207			$	13,890,550			$	13,400,618			$	13,039,674			$	12,892,653			$	12,862,395					$	14,929,666			$	13,400,618
	Intangibles				969,823				971,481				973,214				975,048				976,943				978,390				973,673				975,726						969,823				976,943
Actual tangible assets (non-GAAP)					$	13,959,843			$	13,837,452			$	13,923,993			$	12,915,502			$	12,423,675			$	12,061,284			$	11,918,980			$	11,886,669					$	13,959,843			$	12,423,675
	(A) Tax effect is calculated based on respective periods effective tax rate.

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
					RECONCILIATION OF GAAP TO NON-GAAP
																																	Twelve Months Ended
					2020													2019															December 31,
					Fourth			Third				Second			First			Fourth				Third			Second			First
					Quarter			Quarter				Quarter			Quarter			Quarter				Quarter			Quarter			Quarter					2020			2019
(1) Return on Average Equity
Return on avg s/h’s equity (GAAP)					5.88	%		5.63		%		3.85	%		0.38	%		7.15		%		6.97	%		8.90	%		8.86	%				3.96	%		7.95	%
	Effect of adjustment for intangible assets				5.38	%		5.24		%		3.87	%		0.82	%		6.60		%		6.41	%		8.25	%		8.55	%				3.87	%		7.41	%
Return on avg tangible s/h’s equity (non-GAAP)					11.26	%		10.87		%		7.72	%		1.20	%		13.75		%		13.38	%		17.15	%		17.41	%				7.83	%		15.36	%
Return on avg s/h’s equity (GAAP)					5.88	%		5.63		%		3.85	%		0.38	%		7.15		%		6.97	%		8.90	%		8.86	%				3.96	%		7.95	%
	Effect of exclusions from net income				1.23	%		(0.03	)	%		1.77	%		1.72	%		(0.18	)	%		0.46	%		0.02	%		—	%				1.20	%		0.80	%
Return on avg s/h’s equity with excl. (non-GAAP)					7.11	%		5.60		%		5.62	%		2.10	%		6.97		%		7.43	%		8.92	%		8.86	%				5.16	%		8.03	%
	Effect of adjustment for intangible assets				6.41	%		5.21		%		5.39	%		2.31	%		6.44		%		6.80	%		8.28	%		8.55	%				4.90	%		7.48	%
Return on avg tangible s/h’s equity with exclusions (non-GAAP)					13.52	%		10.81		%		11.01	%		4.41	%		13.41		%		14.23	%		17.20	%		17.41	%				10.06	%		15.51	%
(2) Return on Average Assets
Return on avg assets (GAAP)					0.84	%		0.80		%		0.55	%		0.06	%		1.16		%		1.16	%		1.47	%		1.44	%				0.58	%		1.30	%
	Effect of adjustment for intangible assets				0.10	%		0.09		%		0.08	%		0.05	%		0.14		%		0.14	%		0.17	%		0.17	%				0.08	%		0.16	%
Return on avg tangible assets (non-GAAP)					0.94	%		0.89		%		0.63	%		0.11	%		1.30		%		1.30	%		1.64	%		1.61	%				0.66	%		1.46	%
Return on avg assets (GAAP)					0.84	%		0.80		%		0.55	%		0.06	%		1.16		%		1.16	%		1.47	%		1.44	%				0.58	%		1.30	%
	Effect of exclusions from net income				0.18	%		(0.01	)	%		0.25	%		0.27	%		(0.03	)	%		0.07	%		—	%		—	%				0.17	%		0.01	%
Return on avg assets with exclusions (non-GAAP)					1.02	%		0.79		%		0.80	%		0.33	%		1.13		%		1.23	%		1.47	%		1.44	%				0.75	%		1.31	%
	Effect of adjustment for intangible assets				0.11	%		0.10		%		0.10	%		0.07	%		0.14		%		0.16	%		0.17	%		0.17	%				0.10	%		0.17	%
Return on avg tangible assets with exclusions (non-GAAP)					1.13	%		0.89		%		0.90	%		0.40	%		1.27		%		1.39	%		1.64	%		1.61	%				0.85	%		1.48	%
(3) Shareholder Equity Ratio
Shareholders’ equity to actual assets (GAAP)					14.28	%		14.21		%		13.98	%		14.91	%		15.86		%		16.26	%		16.44	%		16.24	%				14.28	%		15.86	%
	Effect of adjustment for intangible assets				5.95	%		6.02		%		6.01	%		6.43	%		6.61		%		6.80	%		6.82	%		6.88	%				5.95	%		6.61	%
Tangible capital ratio (non-GAAP)					8.33	%		8.19		%		7.97	%		8.48	%		9.25		%		9.46	%		9.62	%		9.36	%				8.33	%		9.25	%

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																																								Twelve Months Ended
			2020																		2019																			December 31,
			Fourth				Third				Second					First					Fourth				Third					Second					First
			Quarter				Quarter				Quarter					Quarter					Quarter				Quarter					Quarter					Quarter					2020					2019
Interest income (FTE)			$	123,823			$	123,677			$	125,630				$	131,887				$	135,119			$	135,927				$	139,285				$	138,578				$	505,017				$	548,909
	Interest expense		13,799				15,792				18,173					23,571					24,263				25,651					25,062					23,947					71,335					98,923
Net Interest income (FTE)			$	110,024			$	107,885			$	107,457				$	108,316				$	110,856			$	110,276				$	114,223				$	114,631				$	433,682				$	449,986
Total noninterest income			$	62,864			$	70,928			$	64,170				$	37,570				$	37,456			$	37,953				$	41,960				$	35,885				$	235,532				$	153,254
	Securities gains (losses)		15				—				31					—					—				343					(8		)			13					46					348
	MSR valuation adjustment		1,968				828				(4,951		)			(9,571		)			1,296				(3,132		)			—					—					(11,726		)			(1,836		)
Total adjusted noninterest income			$	60,881			$	70,100			$	69,090				$	47,141				$	36,160			$	40,742				$	41,968				$	35,872				$	247,212				$	154,742
Total noninterest expense			$	122,152			$	116,510			$	118,285				$	115,041				$	95,552			$	96,500				$	93,290				$	88,832				$	471,988				$	374,174
	Amortization of intangibles		1,659				1,733				1,834					1,895					1,946				1,996					2,053					2,110					7,121					8,105
	Merger-related expenses		—				—				—					—					76				24					179					—					—					279
	Debt prepayment penalty		3				28				90					—					—				54					—					—					121					54
	Restructuring charges		7,365				—				—					—					—				—					—					—					7,365					—
	Swap termination charges		2,040				—				—					—					—				—					—					—					2,040					—
	COVID-19 related expenses		613				570				6,257					2,903					—				—					—					—					10,343					—
	Provision for unfunded commitments		500				2,700				2,600					3,400					—				—					—					—					9,200					—
Total adjusted noninterest expense			$	109,972			$	111,479			$	107,504				$	106,843				$	93,530			$	94,426				$	91,058				$	86,722				$	435,798				$	365,736
Efficiency Ratio (GAAP)			70.65		%		65.16		%		68.92			%		78.86			%		64.43		%		65.10			%		59.73			%		59.02		%			70.53			%		62.03			%
(4) Adjusted Efficiency Ratio (non-GAAP)			64.35		%		62.63		%		60.89			%		68.73			%		63.62		%		62.53			%		58.30			%		57.62		%			64.00			%		60.48			%