PR Newswire | Jul 27, 2020 05:16PM EDT

07/27 16:15 CDT

Renasant Corporation Announces Earnings For The Second Quarter Of 2020 TUPELO, Miss., July 27, 2020

TUPELO, Miss., July 27, 2020 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced earnings results for the second quarter of 2020. Net income for the second quarter of 2020 was $20.1 million, as compared to $46.6 million for the second quarter of 2019. Basic and diluted earnings per share ("EPS") were $0.36 for the second quarter of 2020, as compared to basic and diluted EPS of $0.80 for the second quarter of 2019.

Net income for the six months ending June 30, 2020, was $22.1 million, as compared to net income of $91.7 million for the same time period in 2019. Basic and diluted EPS were $0.39 for the first six months of 2020, as compared to basic and diluted EPS of $1.57 and $1.56, respectively, for the first six months of 2019.

"Our second quarter results reflect a rebound in core earnings when compared to the first quarter and truly highlight our team's continued commitment to the core operations of the bank," commented C. Mitchell Waycaster, Renasant President and Chief Executive Officer. "Our team members are continuing to execute our long-term strategy throughout our footprint while providing extraordinary service to our customers. During the quarter, our team closed over 10,500 PPP loans and worked through our internal deferral programs with both commercial and consumer customers. While there are still many economic uncertainties, we remain committed to meeting the needs of our clients and prudently managing our balance sheet while focusing on profitable growth without sacrificing credit quality."

"There are several bright spots in our results that highlight the strong underlying fundamentals of our core business," commented Kevin D. Chapman, Renasant Chief Operating and Financial Officer. "Our mortgage division had another tremendous quarter, with over $1.67 billion of production, continuing to provide an excellent source of diversity in our revenue streams, and our core expenses are trending in the right direction. Our credit quality remains sound and is top-of-mind as we've continued the enhanced monitoring of our loan portfolio implemented in the first quarter of this year, especially the segments we believe are most likely to be adversely impacted by changes in economic activity as a result of the pandemic. Still, in response to the continued economic uncertainty stemming from the pandemic, during the second quarter, we prudently increased our reserves and recorded a $29.5 million provision for loan losses and unfunded commitments. We continue to monitor the impact the pandemic is having on every aspect of our operations, but even during these uncertain times, our commitment to serve the needs of each of our stakeholders remains unchanged."

Paycheck Protection Program and COVID-19 Response UpdateThrough June 30, 2020, the Company has closed over 10,500 Paycheck Protection Program ("PPP") loans in the aggregate amount of approximately $1.3 billion. The Company made PPP loans to both new and existing customers, and generated over $44.7 million in gross fees. Based on trends thus far, the Company does not anticipate the amount of these fees will be materially impacted by payments required to be made to agents of PPP borrowers.

The Company's branch lobbies remain accessible by appointment only (and appointments are generally limited to services that require access inside a branch, such as access to a safe-deposit box to address a pressing need), while protocols designed to minimize Company employees' exposure to COVID-19, such as working remotely, reconfiguring work spaces to promote social distancing and adjusting staff levels, remain in place. As discussed in more detail below, the Company continued to incur expenses, primarily related to employee overtime and other employee benefit accruals, in its response to the COVID-19 pandemic and expects that it will continue to incur elevated expenses even while conditions presenting significant challenges to growth persist. At this time, it remains difficult to accurately predict the duration of this new operating reality. Management's decision on when to return to pre-pandemic operating procedures will take into account the best interests of all of the Company's stakeholders.

Impact of Certain Expenses and ChargesFrom time to time, the Company incurs expenses and charges in connection with certain transactions 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 table presents the impact of these expenses and charges on reported EPS for the second quarter of 2020. There were no such expenses and charges that had a material impact during the second quarter of 2019 or the first six months of 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) as well as more frequent and rigorous branch cleaning.

(in thousands, except per shareThree Months Ended Six Months Ended data)

June 30, 2020 June 30, 2020

Impact to Impact to Pre-tax After-taxDiluted Pre-tax After-taxDiluted EPS EPS

Earnings, as $24,767$20,130$0.36 $27,548$22,138$0.39 reported

MSR valuation 4,951 4,045 0.07 14,522 11,835 0.21 adjustment

COVID-19 related6,257 5,113 0.09 9,160 7,465 0.13 expenses

Earnings, with exclusions $35,975$29,288$0.52 $51,230$41,438$0.73 (Non-GAAP)

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 MetricsThe following tables present the Company's profitability metrics, including and excluding the impact of the mortgage servicing rights (MSR) valuation adjustment, debt prepayment penalties, merger and conversion expenses and COVID-19 related expenses, as applicable, for the dates presented:

As Reported With Exclusions (Non-GAAP)

Three Months Ended Three Months Ended

June 30,March 31,June 30,June 30,March 31,June 30, 2020 2020 2019 2020 2020 2019

Return on average 0.55 %0.06 %1.47 % 0.80 % 0.33 %1.47 % assets

Return on average tangible assets 0.63 %0.11 %1.64 % 0.90 % 0.40 %1.64 % (Non-GAAP)

Return on average 3.85 %0.38 %8.90 % 5.62 % 2.10 %8.92 % equity

Return on average tangible equity 7.72 %1.20 %17.15% 11.01% 4.41 %17.20% (Non-GAAP)

As Reported With Exclusions (Non-GAAP)

Six Months Ended Six Months Ended

June 30,June 30,June 30,June 30, 2020 2019 2020 2019

Return on average assets 0.32 %1.45 %0.59 %1.45 %

Return on average tangible assets 0.39 %1.63 %0.68 %1.63 %(Non-GAAP)

Return on average equity 2.12 %8.88 %3.97 %8.89 %

Return on average tangible equity 4.49 %17.28 %7.94 %17.30 %(Non-GAAP)

Financial ConditionTotal assets were $14.90 billion at June 30, 2020, as compared to $13.40 billion at December 31, 2019. Total loans held for investment were $11.00 billion at June 30, 2020, as compared to $9.69 billion at December 31, 2019. Loans held for investment at June 30, 2020 included $1.28 billion in PPP loans.

Total deposits increased to $11.85 billion at June 30, 2020, from $10.21 billion at December 31, 2019. Non-interest bearing deposits increased $1.19 billion to $3.74 billion, or 31.57% of total deposits, at June 30, 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 quarter was primarily driven by the Company's PPP lending (as loan proceeds are held as Company deposits until the borrower utilizes the funds), Economic Impact Payments provided for in the government stimulus package and core growth.

Continued Focus on Prudent Capital ManagementThe Company remains committed to maintaining a strong capital and liquidity position, while also serving the needs of its stakeholders during these uncertain times. As previously announced, the Company suspended its stock repurchase program during the first quarter of 2020 in response to the COVID-19 pandemic. There is $5.5 million of repurchase availability remaining under the $50.0 million stock repurchase program, which will remain in effect until the earlier of October 2020 or the repurchase of the entire amount of common stock authorized to be repurchased by the Board of Directors.

At June 30, 2020, Tier 1 leverage capital was 9.12%, Common Equity Tier 1 ratio was 10.69%, Tier 1 risk-based capital ratio was 11.69%, and total risk-based capital ratio was 13.72%. All regulatory ratios exceed the minimums required to be "well-capitalized."

The Company's ratio of shareholders' equity to assets was 13.98% at June 30, 2020, as compared to 15.86% at December 31, 2019. Its tangible capital ratio (non-GAAP) was 7.97% at June 30, 2020, as compared to 9.25% at December 31, 2019.

The PPP loans originated during the quarter and held on the Company's balance sheet at June 30, 2020, negatively impacted the Company's tangible capital ratio by 81 basis points and its leverage ratio by 61 basis points.

Results of OperationsNet interest income was $105.8 million for the second quarter of 2020, as compared to $106.6 million for the first quarter of 2020 and $112.8 million for the second quarter of 2019. Net interest income was $212.4 million for the first half of 2020, as compared to $225.9 million for the first half of 2019.

The Company has continued to experience margin pressure during the second quarter of 2020 as a result of the Federal Reserve's decision to cut interest rates as well as changes in the mix of earning assets during the quarter due to the excess liquidity on the balance sheet. The Company has continued to focus on lowering the cost of funding by growing noninterest-bearing deposits and aggressively lowering interest rates on interest-bearing deposits, while also continuing to be opportunistic when rates offered on wholesale borrowings are advantageous. The following tables present the percentage of total average earning assets, by type and yield, for the periods presented:

Percentage of Total Average EarningYield Assets

Three Months Ended Three Months Ended

June 30, March 31, June 30, June 30,March 31,June 30,

2020 2020 2019 2020 2020 2019

Loans held for investment 76.31 %83.44 %82.65 %4.45 %4.93 %5.44 %excl. PPP loans

PPP loans 6.78 - - 2.73 - -

Loans held 2.67 2.90 3.23 3.51 3.57 5.90 for sale

Securities 10.14 11.14 11.54 2.71 2.91 3.04

Other 4.10 2.52 2.58 0.15 1.12 2.59

Total earning100.00 %100.00 %100.00 %3.95 %4.57 %5.11 %assets

Percentage of Total AverageYield Earning Assets

Six Months Ended Six Months Ended

June 30, June 30, June 30,June 30,

2020 2019 2020 2019

Loans held for investment excl.79.71 %82.90 %4.69% 5.44% PPP loans

PPP loans 3.55 - 2.73 -

Loans held for sale 2.78 3.20 3.54 6.37

Securities 10.61 11.52 2.81 3.12

Other 3.35 2.38 0.50 2.55

Total earning assets 100.00 %100.00 %4.25% 5.13%

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

June 30, March 31, June 30,

2020 2020 2019

Taxable equivalent net interest $107,457 $108,316 $114,223 income

Average earning assets $12,776,644 $11,609,477 $10,942,492

Net interest margin 3.38 %3.75 %4.19 %



Taxable equivalent interest income$116,703 $121,729 $127,896 on loans

Average loans, including loans $10,956,729 $10,024,114 $9,396,891 held for sale

Loan yield 4.28 %4.88 %5.46 %

Six Months Ended

June 30, June 30,

2020 2019

Taxable equivalent net interest income $215,773 $228,854

Average earning assets $12,193,061 $10,918,979

Net interest margin 3.56 %4.23 %



Taxable equivalent interest income on loans $238,432 $255,102

Average loans, including loans held for sale$10,490,422 $9,400,956

Loan yield 4.57 %5.47 %

PPP loans reduced margin and loan yield by 5 basis points and 14 basis points, respectively, in the second quarter of 2020 and 3 basis points and 8 basis points, respectively, in the first half of 2020. In addition to the impact of PPP loans on the margin as disclosed above, excess cash carried on the Company's balance sheet reduced margin by 15 basis points and 9 basis points in the second quarter and first half of 2020, respectively.

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

June 30, March 31,June 30,

2020 2020 2019

Net interest income collected on problem loans $384 $218 $2,173

Accretable yield recognized on purchased loans^4,700 5,469 7,513 (1)

Total impact to interest income $5,084 $5,687 $9,686



Impact to total loan yield 0.19 %0.23 %0.41 %



Impact to net interest margin 0.16 %0.20 %0.36 %



Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $1,731, $2,187 and $4,197 for the three months ended June 30, 2020, March 31, ^ 2020, and June 30, 2019, respectively. This additional interest income (1)increased total loan yield by 6 basis points, 9 basis points and 18 basis points for the same periods, respectively, while increasing net interest margin by 5 basis points, 8 basis points and 15 basis points for the same periods, respectively.

Six Months Ended

June 30, June 30,

2020 2019

Net interest income collected on problem loans $602 $2,985

Accretable yield recognized on purchased loans^(1)10,169 15,056

Total impact to interest income $10,771 $18,041



Impact to total loan yield 0.21 %0.39 %



Impact to net interest margin 0.18 %0.33 %



Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $3,919 and ^ $8,030 for the six months ended June 30, 2020 and 2019, respectively. (1)This additional interest income increased total loan yield by 8 basis points and 17 basis points for the same periods, respectively, while increasing net interest margin by 6 basis points and 15 basis points for the same periods, respectively.

For the second quarter of 2020, the cost of total deposits was 49 basis points, as compared to 72 basis points for the first quarter of 2020 and 83 basis points for the second quarter of 2019. The cost of total deposits was 60 basis points for the first six months of 2020, as compared to 81 basis points for the same period in 2019. The tables below present, by type, our funding sources and the total cost of each funding source for the periods presented:

Percentage of Total Average Deposits andCost of Funds Borrowed Funds

Three Months Ending Three Months Ending

June 30, March 31, June 30, June 30,March 31,June 30,

2020 2020 2019 2020 2020 2019

Noninterest-bearing27.80 %23.19 %22.82 %- %- %- %demand

Interest-bearing 41.64 44.29 45.12 0.43 0.75 0.89 demand

Savings 6.04 6.11 6.14 0.09 0.15 0.20

Time deposits 16.44 18.98 22.56 1.62 1.71 1.72

Borrowed funds 8.08 7.43 3.36 1.73 2.46 4.61

Total deposits and 100.00 %100.00 %100.00 %0.59 %0.85 %0.96 %borrowed funds

Percentage of Total Average Cost of Funds Deposits and Borrowed Funds

Six Months Ending Six Months Ending

June 30, June 30, June 30,June 30,

2020 2019 2020 2019

Noninterest-bearing demand 25.62 %22.56 %- %- %

Interest-bearing demand 42.89 45.36 0.59 0.87

Savings 6.07 6.07 0.12 0.20

Time deposits 17.64 22.60 1.66 1.66

Borrowed funds 7.78 3.41 2.06 4.64

Total deposits and borrowed 100.00 %100.00 %0.71 %0.94 %funds

Noninterest income for the second quarter of 2020 was $64.2 million, as compared to $37.6 million for the first quarter of 2020 and $42.0 million for the second quarter of 2019. Noninterest income for the first six months of 2020 was $101.7 million, as compared to $77.8 million for the same period in 2019. Service charges on deposit accounts decreased quarter over quarter due to a decrease in overdraft fees as a result of increased customer liquidity and a decrease in consumer spending due to shutdowns throughout the Company's footprint. Effective July 1, 2019, the Company became subject to the limitations on interchange fees imposed by the Durbin Amendment under the Dodd-Frank Act, which is reflected in the reduction in fees and commissions on loans and deposits in the first six months of 2020 as compared to the first six months of 2019. Mortgage banking income continued to be a strong source of noninterest income for the Company with mortgage production during the second quarter of 2020 of approximately $1.67 billion and year-to-date production of $3.57 billion. Mortgage banking income was offset by a negative MSR valuation adjustment in both the first and second quarter of 2020. The following tables present the components of mortgage banking income for the periods presented (in thousands):

Three Months Ended

June 30, 2020March 31, 2020June 30, 2019

Gain on sales of loans, net $46,560 $21,782 $12,901

Fees, net 5,309 2,919 2,945

Mortgage servicing income, net(1,428) 405 774

MSR valuation adjustment (4,951) (9,571) -

Mortgage banking income, net $45,490 $15,535 $16,620

Six Months Ended

June 30, 2020June 30, 2019

Gain on sales of loans, net $ 68,342 $ 20,789

Fees, net 8,228 4,638

Mortgage servicing income, net(1,023) 1,594

MSR valuation adjustment (14,522) -

Mortgage banking income, net $ 61,025 $ 27,021

Noninterest expense was $118.3 million for the second quarter of 2020, as compared to $115.0 million for the first quarter of 2020 and $93.3 million for the second quarter of 2019. Noninterest expense was $233.3 million for the first six months of 2020, as compared to $182.1 million for the same period in 2019. Salaries and benefits expense was $79.4 million for the second quarter of 2020, which represents an increase of $6.2 million from the previous quarter. Compensation related to the continued elevated mortgage production during the quarter increased $3.2 million dollars on a linked quarter basis. In addition, during the quarter the Company recognized approximately $5.8 million in expense related to elevated overtime and other accruals for employee benefits provided in response to the COVID-19 pandemic. The Company recorded $2.6 million provision for unfunded commitments in other noninterest expense in the second quarter of 2020, as compared to a $3.4 million provision for unfunded commitments in the first quarter of 2020.

Asset Quality MetricsAt June 30, 2020, the Company's credit quality metrics remained strong. During the first quarter of 2020, in response to the potential economic impact of COVID-19 the Company proactively identified customers in potentially high-risk industries. The Company placed heightened attention on borrowers in the hospitality (such as hotel/motel), restaurant, entertainment and retail trade (the Company does not have material exposure to the energy industry). The Company is continuing to monitor all asset categories given that any category or borrower could be negatively impacted by the pandemic. To provide necessary relief to the Company's borrowers - both consumer and commercial clients - the Company established loan deferral programs allowing qualified clients to defer principal and interest payments for up to 90 days. As of June 30, 2020, approximately 21.5% of the Company's loan portfolio excluding PPP loans was in deferral. The deferral percentage decreased to approximately 13.5% as of July 24, 2020.

The Company's credit quality in future quarters will potentially be impacted by both external and internal factors. External factors outside the Company's control could include items such as federal, state and local government measures, "shelter-in-place" orders, economic impact of government programs and future spread of COVID-19. 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).

June 30, 2020 December 31, 2019

Non PurchasedTotal Non PurchasedTotal Purchased Purchased

Nonaccrual $16,591$21,361$37,952 $21,509$7,038 $28,547 loans

Loans 90 days past due or 3,993 2,158 6,151 3,458 4,317 7,775 more

Nonperforming $20,584$23,519$44,103 $24,967$11,355$36,322 loans

Other real 4,694 4,431 9,125 2,762 5,248 8,010 estate owned

Nonperforming $25,278$27,950$53,228 $27,729$16,603$44,332 assets

Nonperforming loans/total 0.40 % 0.37 %loans

Nonperforming loans/total 0.45 % - loans excluding PPP loans

Nonperforming assets/total 0.36 % 0.33 %assets

Nonperforming assets/total assets 0.39 % - excluding PPP loans

Loans 30-89 $6,586 $3,089 $9,675 $22,781$14,887$37,668 days past due

Loans 30-89 days past due/ 0.09 % 0.39 %total loans

The implementation of CECL on January 1, 2020, which required purchased credit deteriorated loans to be classified as nonaccrual based on performance, contributed approximately $5.3 million as of June 30, 2020 to the increase in purchased nonaccrual loans.

The table below shows the allowance transition from the former incurred loss allowance model at December 31, 2019 through the day one transition to CECL on January 1, 2020 and the subsequent reserve build-up through the first half of 2020 and the ending allowance under the CECL model at June 30, 2020 (in thousands).

December 31, 2019January 1, 2020March 31, 2020June 30, 2020

Incurred Loss CECL Model CECL Model Model Day 1

Allowance for $ 52,162 $94,647 $120,185 $145,387 credit losses

Reserve for unfunded 946 11,336 14,735 17,335 commitments

Total reserves$ 53,108 $105,983 $134,920 $162,722

Allowance for credit losses/0.54 % 0.98 %1.23 %1.32 %total loans

Allowance for credit losses/ total loans - - - 1.50 %excluding PPP loans

Reserve for unfunded commitments/ 0.04 % 0.47 %0.60 %0.66 %total unfunded commitments

The Company recorded a provision for credit losses of $26.9 million and a reserve for unfunded commitments, which is recorded in other noninterest expense, of $2.6 million for the second quarter of 2020. Net loan charge-offs were $1.7 million, or 0.06% of average loans held for investment on an annualized basis. The continued elevated provision is driven by qualitative factors related to the uncertainty concerning the COVID-19 pandemic, with forecasted negative GDP growth and high unemployment rates throughout 2020 and into 2021, and a potential prolonged economic recovery period.

The provision for credit losses recorded during the second quarter of 2019 was $900 thousand with net charge-offs of $676 thousand, or 0.03% 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 329.65% as of June 30, 2020, as compared to 240.19% as of March 31, 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 on Tuesday, July 28, 2020.

The webcast can be accessed through Renasant's investor relations website at www.renasant.comor https://services.choruscall.com/links/rnst200722.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2020 Second Quarter and Year-end 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 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 10146378 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 5, 2020.

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, mortgage, wealth management and insurance offices in Mississippi, Tennessee, Alabama, Florida and Georgia.

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. 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, 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 duration and extent 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, 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) 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 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 contains non-GAAP financial measures, namely, 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, merger and conversion expenses, debt prepayment penalties 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) were 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 and COVID-19 related charges 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 other 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 Kevin Chapman

Senior Vice President Executive Vice President

Director of Marketing and Public Chief Operating and Financial Relations Officer

(662) 680-1219 (662) 680-1450

joxford@renasant.com kchapman@renasant.com

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q2 2020- For The Six Months Ending

2020 2019 Q2 2019 June 30,

Second First Fourth Third Second First Percent Percent

Quarter Quarter Quarter Quarter Quarter Quarter Variance 2020 2019 Variance

Statement of earnings

Interest income - taxable $ 125,630 $ 131,887 $ 135,119 $ 135,927 $ 139,285 $ 138,578 (9.80) % $ 257,517 $ 277,863 (7.32) %equivalent basis

Interest income $ 123,955 $ 130,173 $ 133,148 $ 134,476 $ 137,862 $ 137,094 (10.09) $ 254,128 $ 274,956 (7.58)

Interest expense 18,173 23,571 24,263 25,651 25,062 23,947 (27.49) 41,744 49,009 (14.82)

Net interest 105,782 106,602 108,885 108,825 112,800 113,147 (6.22) 212,384 225,947 (6.00) income

Provision for loan losses 26,900 26,350 2,950 1,700 900 1,500 2,888.89 53,250 2,400 2,118.75

Net interest income after 78,882 80,252 105,935 107,125 111,900 111,647 (29.51) 159,134 223,547 (28.81) provision

Service charges on 6,832 9,070 9,273 8,992 8,605 9,102 (20.60) 15,902 17,707 (10.19)deposit accounts

Fees and commissions on 2,971 3,054 2,822 3,090 7,047 6,471 (57.84) 6,025 13,518 (55.43)loans and deposits

Insurance commissions and 2,125 1,991 2,105 2,508 2,190 2,116 (2.97) 4,116 4,306 (4.41)fees

Wealth management revenue 3,824 4,002 3,920 3,588 3,601 3,324 6.19 7,826 6,925 13.01

Securities gains (losses) 31 - - 343 -8 13 (487.50) 31 5 520.00

Mortgage banking income 45,490 15,535 15,165 15,710 16,620 10,401 173.71 61,025 27,021 125.84

Other 2,897 3,918 4,171 3,722 3,905 4,458 (25.81) 6,815 8,363 (18.51)

Total noninterest 64,170 37,570 37,456 37,953 41,960 35,885 52.93 101,740 77,845 30.70 income

Salaries and employee 79,361 73,189 67,684 65,425 60,325 57,350 31.56 152,550 117,675 29.64benefits

Data processing 5,047 5,006 5,095 4,980 4,698 4,906 7.43 10,053 9,604 4.68

Occupancy and equipment 13,511 14,120 13,231 12,943 11,544 11,835 17.04 27,631 23,379 18.19

Other real estate 620 418 339 418 252 1,004 146.03 1,038 1,256 (17.36)

Amortization of 1,834 1,895 1,946 1,996 2,053 2,110 (10.67) 3,729 4,163 (10.43)intangibles

Merger and conversion - - 76 24 179 - (100.00) - 179 -related expenses

Debt extinguishment 90 - - 54 - - 100.00 90 - 100.00penalty

Other 17,822 20,413 7,181 10,660 14,239 11,627 25.16 38,235 25,866 47.82

Total noninterest 118,285 115,041 95,552 96,500 93,290 88,832 26.79 233,326 182,122 28.12 expense

Income before income 24,767 2,781 47,839 48,578 60,570 58,700 (59.11) 27,548 119,270 (53.07)taxes

Income taxes 4,637 773 9,424 11,132 13,945 13,590 (66.75) 5,410 27,535 (80.35)

Net income $ 20,130 $ 2,008 $ 38,415 $ 37,446 $ 46,625 $ 45,110 (56.83) $ 22,138 $ 91,735 (28.97)

Basic earnings per share $ 0.36 $ 0.04 $ 0.67 $ 0.65 $ 0.80 $ 0.77 (55.00) $ 0.39 $ 1.57 (75.16)

Diluted earnings per 0.36 0.04 0.67 0.64 0.80 0.77 (55.00) 0.39 1.56 (75.00)share

Average basic shares 56,165,452 56,534,816 57,153,160 58,003,215 58,461,024 58,585,517 (3.93) 56,350,134 58,523,007 (3.71)outstanding

Average diluted shares 56,325,476 56,706,289 57,391,876 58,192,419 58,618,976 58,730,535 (3.91) 56,514,599 58,669,056 (3.67)outstanding

Common shares outstanding 56,181,962 56,141,018 56,855,002 57,455,306 58,297,670 58,633,630 (3.63) 56,181,962 58,297,670 (3.63)

Cash dividend per common $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.21 - $ 0.44 $ 0.43 2.33share

Performance ratios

Return on avg 3.85 % 0.38 % 7.15 % 6.97 % 8.90 % 8.86 % 2.12 % 8.88 %shareholders' equity

Return on avg tangible s/ 7.72 % 1.20 % 13.75 % 13.38 % 17.15 % 17.41 % 4.49 % 17.28 %h's equity (non-GAAP) (1)

Return on avg assets 0.55 % 0.06 % 1.16 % 1.16 % 1.47 % 1.44 % 0.32 % 1.45 %

Return on avg tangible 0.63 % 0.11 % 1.30 % 1.30 % 1.64 % 1.61 % 0.39 % 1.63 %assets (non-GAAP)(2)

Net interest margin (FTE) 3.38 % 3.75 % 3.90 % 3.98 % 4.19 % 4.27 % 3.56 % 4.23 %

Yield on earning assets 3.95 % 4.57 % 4.75 % 4.91 % 5.11 % 5.16 % 4.25 % 5.13 %(FTE)

Cost of funding 0.59 % 0.85 % 0.89 % 0.97 % 0.96 % 0.92 % 0.71 % 0.94 %

Average earning assets to 86.88 % 86.17 % 85.71 % 85.58 % 85.72 % 85.58 % 86.54 % 85.65 %average assets

Average loans to average 93.35 % 93.83 % 92.43 % 89.13 % 89.13 % 89.33 % 93.58 % 89.23 %deposits

Noninterest income (lesssecurities gains/

losses) to 1.75 % 1.12 % 1.13 % 1.16 % 1.32 % 1.14 % 1.45 % 1.23 % average assets

Noninterest expense (lessdebt prepayment penalties/

penalties/ merger-related expenses) to

average assets 3.23 % 3.43 % 2.88 % 2.98 % 2.93 % 2.83 % 3.33 % 2.88 %

Net overhead ratio 1.48 % 2.31 % 1.75 % 1.82 % 1.61 % 1.69 % 1.88 % 1.65 %

Efficiency ratio (FTE) 68.92 % 78.86 % 64.43 % 65.10 % 59.73 % 59.02 % 73.49 % 59.38 %

Adjusted efficiency ratio 60.89 % 68.73 % 63.62 % 62.53 % 58.30 % 57.62 % 64.56 % 57.97 %(FTE) (non-GAAP) (4)

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q2 2020 - As of

2020 2019 Q2 2019 June 30,

Second First Fourth Third Second First Percent Percent

Quarter Quarter Quarter Quarter Quarter Quarter Variance 2020 2019 Variance

Average Balances

Total assets $ 14,706,027 $ 13,472,550 $ 13,157,843 $ 12,846,131 $ 12,764,669 $ 12,730,939 15.21 % $ 14,089,289 $ 12,747,897 10.52 %

Earning assets 12,776,643 11,609,477 11,277,000 10,993,645 10,942,492 10,895,205 16.76 12,193,058 10,918,979 11.67

Securities 1,295,539 1,292,875 1,234,718 1,227,678 1,262,271 1,253,224 2.64 1,294,207 1,257,772 2.90

Loans held for sale 340,582 336,829 350,783 385,437 353,103 345,264 (3.55) 338,706 349,205 (3.01)

Loans, net of unearned 10,616,147 9,687,285 9,457,658 9,109,252 9,043,788 9,059,802 17.39 10,151,716 9,051,751 12.15

Intangibles 974,237 975,933 977,506 975,306 974,628 976,820 (0.04) 975,085 975,718 (0.06)

Noninterest-bearing 3,439,634 2,586,963 2,611,265 2,500,810 2,395,899 2,342,406 43.56 3,013,298 2,369,300 27.18deposits

Interest-bearing deposits 7,933,035 7,737,615 7,620,602 7,719,510 7,750,986 7,799,892 2.35 7,835,324 7,775,304 0.77

Total deposits 11,372,669 10,324,578 10,231,867 10,220,320 10,146,885 10,142,298 12.08 10,848,622 10,144,604 6.94

Borrowed funds 1,000,789 829,320 596,101 308,931 354,234 363,140 182.52 915,054 358,662 155.13

Shareholders' equity 2,101,092 2,105,143 2,131,342 2,131,537 2,102,093 2,065,370 (0.05) 2,103,118 2,083,833 0.93

Q2 2020 - As of

2020 2019 Q4 2019 June 30,

Second First Fourth Third Second First Percent Percent

Quarter Quarter Quarter Quarter Quarter Quarter Variance 2020 2019 Variance

Balances at period end

Total assets $ 14,897,207 $ 13,890,550 $ 13,400,618 $ 13,039,674 $ 12,892,653 $ 12,862,395 11.17 % $ 14,897,207 $ 12,892,653 15.55 %

Earning assets 13,041,846 11,970,492 11,522,388 11,145,052 11,064,957 11,015,535 13.19 13,041,846 11,064,957 17.87

Securities 1,303,494 1,359,129 1,290,613 1,238,577 1,268,280 1,255,353 1.00 1,303,494 1,268,280 2.78

Loans held for sale 339,747 448,797 318,272 392,448 461,681 318,563 6.75 339,747 461,681 (26.41)

Non purchased loans 9,206,101 7,802,404 7,587,974 7,031,818 6,704,288 6,565,599 21.32 9,206,101 6,704,288 37.32

Purchased loans 1,791,203 1,966,973 2,101,664 2,281,966 2,350,366 2,522,694 (14.77) 1,791,203 2,350,366 (23.79)

Total loans 10,997,304 9,769,377 9,689,638 9,313,784 9,054,654 9,088,293 13.50 10,997,304 9,054,654 21.45

Intangibles 973,214 975,048 976,943 978,390 973,673 975,726 (0.38) 973,214 973,673 (0.05)

Noninterest-bearing 3,740,296 2,642,059 2,551,770 2,607,056 2,408,984 2,366,223 46.58 3,740,296 2,408,984 55.26deposits

Interest-bearing deposits 8,106,062 7,770,367 7,661,398 7,678,980 7,781,077 7,902,689 5.80 8,106,062 7,781,077 4.18

Total deposits 11,846,358 10,412,426 10,213,168 10,286,036 10,190,061 10,268,912 15.99 11,846,358 10,190,061 16.25

Borrowed funds 718,490 1,169,631 865,598 433,705 401,934 350,859 (16.99) 718,490 401,934 78.76

Shareholders' equity 2,082,946 2,070,512 2,125,689 2,119,659 2,119,696 2,088,877 (2.01) 2,082,946 2,119,696 (1.73)

Market value per common 24.90 21.84 35.42 35.01 35.94 33.85 (29.70) 24.90 35.94 (30.72)share

Book value per common 37.07 36.88 37.39 36.89 36.36 35.63 (0.85) 37.07 36.36 1.95share

Tangible book value per 19.75 19.51 20.20 19.86 19.66 18.98 (2.25) 19.75 19.66 0.46common share

Shareholders' equity to 13.98 % 14.91 % 15.86 % 16.26 % 16.44 % 16.24 % 13.98 % 16.44 %assets (actual)

Tangible capital ratio 7.97 % 8.48 % 9.25 % 9.46 % 9.62 % 9.36 % 7.97 % 9.62 %(non-GAAP)(3)

Leverage ratio 9.12 % 9.90 % 10.37 % 10.56 % 10.65 % 10.44 % 9.12 % 10.65 %

Common equity tier 1 10.69 % 10.63 % 11.12 % 11.36 % 11.64 % 11.49 % 10.69 % 11.64 %capital ratio

Tier 1 risk-based capital 11.69 % 11.63 % 12.14 % 12.40 % 12.69 % 12.55 % 11.69 % 12.69 %ratio

Total risk-based capital 13.72 % 13.44 % 13.78 % 14.07 % 14.62 % 14.57 % 13.72 % 14.62 %ratio

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q2 2020 - As of

2020 2019 Q4 2019 June 30,

Second First Fourth Third Second First Percent Percent

Quarter Quarter Quarter Quarter Quarter Quarter Variance 2020 2019 Variance

Non purchased loans

Commercial, financial, $ 1,134,965 $ 1,144,004 $ 1,052,353 $ 988,867 $ 930,598 $ 921,081 7.85 % $ 1,134,965 $ 930,598 21.96 %agricultural

SBA Paycheck Protection 1,281,278 - - - - - 100.00 1,281,278 - 100.00Program

Lease financing 80,779 84,679 81,875 69,953 59,158 58,651 (1.34) 80,779 59,158 36.55

Real estate- construction 756,872 745,066 774,901 764,589 716,129 651,119 (2.33) 756,872 716,129 5.69

Real estate - 1-4 family 2,342,987 2,356,627 2,350,126 2,235,908 2,160,617 2,114,908 (0.30) 2,342,987 2,160,617 8.44mortgages

Real estate - commercial 3,400,718 3,242,172 3,128,876 2,809,470 2,741,402 2,726,186 8.69 3,400,718 2,741,402 24.05mortgages

Installment loans to 208,502 229,856 199,843 163,031 96,384 93,654 4.33 208,502 96,384 116.32individuals

Loans, net of unearned $ 9,206,101 $ 7,802,404 $ 7,587,974 $ 7,031,818 $ 6,704,288 $ 6,565,599 21.32 $ 9,206,101 $ 6,704,288 37.32

Purchased loans

Commercial, financial, $ 225,355 $ 280,572 $ 315,619 $ 339,693 $ 374,478 $ 387,376 (28.60) $ 225,355 $ 374,478 (39.82)agricultural

Real estate- construction 34,236 42,829 51,582 52,106 65,402 89,954 (33.63) 34,236 65,402 (47.65)

Real estate - 1-4 family 445,526 489,674 516,487 561,725 604,855 654,265 (13.74) 445,526 604,855 (26.34)mortgages

Real estate - commercial 1,010,035 1,066,536 1,115,389 1,212,905 1,276,567 1,357,446 (9.45) 1,010,035 1,276,567 (20.88)mortgages

Installment loans to 76,051 87,362 102,587 115,537 29,064 33,653 (25.87) 76,051 29,064 161.67individuals

Loans, net of unearned $ 1,791,203 $ 1,966,973 $ 2,101,664 $ 2,281,966 $ 2,350,366 $ 2,522,694 (14.77) $ 1,791,203 $ 2,350,366 (23.79)

Asset quality data

Non purchased assets

Nonaccrual loans $ 16,591 $ 21,384 $ 21,509 $ 15,733 $ 14,268 $ 12,507 (22.86) $ 16,591 $ 14,268 16.28

Loans 90 past due or more 3,993 4,459 3,458 7,325 4,175 1,192 15.47 3,993 4,175 (4.36)

Nonperforming loans 20,584 25,843 24,967 23,058 18,443 13,699 (17.56) 20,584 18,443 11.61

Other real estate owned 4,694 3,241 2,762 1,975 3,475 4,223 69.95 4,694 3,475 35.08

Nonperforming assets $ 25,278 $ 29,084 $ 27,729 $ 25,033 $ 21,918 $ 17,922 (8.84) $ 25,278 $ 21,918 15.33

Purchased assets

Nonaccrual loans $ 21,361 $ 19,090 $ 7,038 $ 6,123 $ 7,250 $ 7,828 203.51 $ 21,361 $ 7,250 194.63

Loans 90 past due or more 2,158 5,104 4,317 7,034 7,687 5,436 (50.01) 2,158 7,687 (71.93)

Nonperforming loans 23,519 24,194 11,355 13,157 14,937 13,264 107.12 23,519 14,937 57.45

Other real estate owned 4,431 5,430 5,248 6,216 5,258 5,932 (15.57) 4,431 5,258 (15.73)

Nonperforming assets $ 27,950 $ 29,624 $ 16,603 $ 19,373 $ 20,195 $ 19,196 68.34 $ 27,950 $ 20,195 38.40

Net loan charge-offs $ 1,698 $ 811 $ 1,602 $ 945 $ 676 $ 691 5.99 $ 2,509 $ 1,367 83.54(recoveries)

Allowance for loan losses $ 145,387 $ 120,185 $ 52,162 $ 50,814 $ 50,059 $ 49,835 178.72 $ 145,387 $ 50,059 190.43

Annualized net loancharge-offs / average 0.06 % 0.03 % 0.07 % 0.04 % 0.03 % 0.03 % 0.05 % 0.03 %loans

Nonperforming loans / 0.40 % 0.51 % 0.37 % 0.39 % 0.37 % 0.30 % 0.40 % 0.37 %total loans*

Nonperforming assets / 0.36 % 0.42 % 0.33 % 0.34 % 0.33 % 0.29 % 0.36 % 0.33 %total assets*

Allowance for loan losses 1.32 % 1.23 % 0.54 % 0.55 % 0.55 % 0.55 % 1.32 % 0.55 %/ total loans*

Allowance for loan losses 329.65 % 240.19 % 143.61 % 140.31 % 149.97 % 184.83 % 329.65 % 149.97 %/ nonperforming loans*

Nonperforming loans / 0.22 % 0.33 % 0.33 % 0.33 % 0.28 % 0.21 % 0.22 % 0.28 %total loans**

Nonperforming assets / 0.17 % 0.21 % 0.21 % 0.19 % 0.17 % 0.14 % 0.17 % 0.17 %total assets**

*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 Six Months Ending

June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019

Interest Average Interest Yield/ Average Interest Yield/ Average Interest Yield/ Average Interest Yield Average / Yield/

Income/ Balance Income/ Rate Balance Income/ Rate Balance Income/ Rate Balance Income/ Rate Balance

Rate

Expense Expense Expense Expense Expense

Assets

Interest-earning assets:

Loans

$

165,106Non purchased $ 7,872,371 $ 81,836 4.18 % $ 7,654,662 $ 88,554 4.65 % $ 6,622,202 $ 83,922 5.08 % $ 7,763,516 $ 170,390 4.41 % $ 6,538,998

5.09

%

78,968

Purchased 1,877,698 26,005 5.57 % 2,032,623 30,187 5.97 % 2,421,586 38,783 6.42 % 1,955,161 56,192 5.78 % 2,512,753 6.34

%

-

SBA Paycheck Protection 866,078 5,886 2.73 % - - - % - - - % 433,039 5,886 2.73 % -Program -

%

244,074

Total loans 10,616,147 113,727 4.31 % 9,687,285 118,741 4.93 % 9,043,788 122,705 5.44 % 10,151,716 232,468 4.61 % 9,051,751 5.44

%

11,028

Loans held for sale 340,582 2,976 3.51 % 336,829 2,988 3.57 % 353,103 5,191 5.90 % 338,706 5,964 3.54 % 349,205 6.37

%

Securities:

15,591

Taxable^(1) 1,031,740 6,386 2.49 % 1,067,274 7,289 2.75 % 1,084,736 7,699 2.85 % 1,049,507 13,675 2.62 % 1,073,422 2.93

%

3,882

Tax-exempt 263,799 2,346 3.58 % 225,601 2,058 3.67 % 177,535 1,860 4.20 % 244,700 4,404 3.62 % 184,350 4.25

%

19,473

Total securities 1,295,539 8,732 2.71 % 1,292,875 9,347 2.91 % 1,262,271 9,559 3.04 % 1,294,207 18,079 2.81 % 1,257,772 3.12

%

3,288

Interest-bearing balances 524,376 195 0.15 % 292,488 811 1.12 % 283,330 1,830 2.59 % 408,432 1,006 0.50 % 260,251with banks 2.55

%

277,863

Total interest-earning 12,776,644 125,630 3.95 % 11,609,477 131,887 4.57 % 10,942,492 139,285 5.11 % 12,193,061 257,517 4.25 % 10,918,979assets 5.13

%

Cash and due from banks 214,079 186,317 178,606 200,198 185,198

Intangible assets 974,237 975,933 974,628 975,085 975,718

Other assets 741,067 700,823 668,943 720,945 668,002

Total assets $ 14,706,027 $ 13,472,550 $ 12,764,669 $ 14,089,289 $ 12,747,897

Liabilities andshareholders' equity

Interest-bearingliabilities:

Deposits:

$

20,569Interest-bearing demand^(2) $ 5,151,713 $ 5,524 0.43 % $ 4,939,757 $ 9,253 0.75 % $ 4,737,780 $ 10,495 0.89 % $ 5,045,735 $ 14,777 0.59 % $ 4,763,837

0.87

%

621

Savings deposits 747,173 173 0.09 % 681,182 252 0.15 % 644,540 329 0.20 % 714,177 426 0.12 % 637,644 0.20

%

19,573

Time deposits 2,034,149 8,174 1.62 % 2,116,676 8,989 1.71 % 2,368,666 10,167 1.72 % 2,075,412 17,163 1.66 % 2,373,823 1.66

%

40,763

Total interest-bearing 7,933,035 13,871 0.70 % 7,737,615 18,494 0.96 % 7,750,986 20,991 1.09 % 7,835,324 32,366 0.83 % 7,775,304deposits 1.06

%

8,246

Borrowed funds 1,000,789 4,302 1.73 % 829,320 5,077 2.46 % 354,234 4,071 4.61 % 915,054 9,378 2.06 % 358,662 4.64

%

49,009

Total interest-bearing 8,933,824 18,173 0.82 % 8,566,935 23,571 1.11 % 8,105,220 25,062 1.24 % 8,750,378 41,744 0.96 % 8,133,966liabilities 1.22

%

Noninterest-bearing 3,439,634 2,586,963 2,395,899 3,013,298 2,369,300deposits

Other liabilities 231,477 213,509 161,457 222,495 160,798

Shareholders' equity 2,101,092 2,105,143 2,102,093 2,103,118 2,083,833

Total liabilities and $ 14,706,027 $ 13,472,550 $ 12,764,669 $ 14,089,289 $ 12,747,897shareholders' equity

$

228,854Net interest income/ net $ 107,457 3.38 % $ 108,316 3.75 % $ 114,223 4.19 % $ 215,773 3.56 %interest margin 4.23

%

Cost of funding 0.59 % 0.85 % 0.96 % 0.71 % 0.94

%

Cost of total deposits 0.49 % 0.72 % 0.83 % 0.60 % 0.81

%

^(1)U.S. Government and some U.S. Government Agency securities aretax-exempt in the states in which we operate.

^(2)Interest-bearing demand deposits include interest-bearingtransactional accounts and money market deposits.

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

RECONCILIATION OF GAAP TO NON-GAAP

Six Months Ended

2020 2019 June 30,

Second First Fourth Third Second First

Quarter Quarter Quarter Quarter Quarter Quarter 2020 2019

Net income (GAAP) $ 20,130 $ 2,008 $ 38,415 $ 37,446 $ 46,625 $ 45,110 $ 22,138 $ 91,735

Amortization of 1,834 1,895 1,946 1,996 2,053 2,110 3,729 4,163 intangibles

Tax effect of adjustment (335) (527) (383) (457) (473) (488) (690) (961) noted above ^(A)

Tangible net income $ 21,629 $ 3,376 $ 39,978 $ 38,985 $ 48,205 $ 46,732 $ 25,177 $ 94,937(non-GAAP)

Net income (GAAP) $ 20,130 $ 2,008 $ 38,415 $ 37,446 $ 46,625 $ 45,110 $ 22,138 $ 91,735

Merger & conversion - - 76 24 179 - - 179 expenses

Debt prepayment penalties 90 - - 54 - - 90 -

MSR valuation adjustment 4,951 9,571 (1,296) 3,132 - - 14,522 -

COVID-19 related expenses 6,257 2,903 - - - - 9,160 -

Tax effect of adjustment (2,065) (3,467) 241 (736) (41) - (4,398) (41) noted above ^(A)

Net income with exclusions $ 29,363 $ 11,015 $ 37,436 $ 39,920 $ 46,763 $ 45,110 $ 41,512 $ 91,873(non-GAAP)

Average shareholders' $ 2,101,092 $ 2,105,143 $ 2,131,342 $ 2,131,537 $ 2,102,093 $ 2,065,370 $ 2,103,118 $ 2,083,833equity (GAAP)

Intangibles 974,237 975,933 977,506 975,306 974,628 976,820 975,085 975,718

Average tangible s/h's $ 1,126,855 $ 1,129,210 $ 1,153,836 $ 1,156,231 $ 1,127,465 $ 1,088,550 $ 1,128,033 $ 1,108,115equity (non-GAAP)

Average total assets (GAAP) $ 14,706,027 $ 13,472,550 $ 13,157,843 $ 12,846,131 $ 12,764,669 $ 12,730,939 $ 14,089,289 $ 12,747,897

Intangibles 974,237 975,933 977,506 975,306 974,628 976,820 975,085 975,718

Average tangible assets $ 13,731,790 $ 12,496,617 $ 12,180,337 $ 11,870,825 $ 11,790,041 $ 11,754,119 $ 13,114,204 $ 11,772,179(non-GAAP)

Actual shareholders' equity $ 2,082,946 $ 2,070,512 $ 2,125,689 $ 2,119,659 $ 2,119,696 $ 2,088,877 $ 2,082,946 $ 2,119,696(GAAP)

Intangibles 973,214 975,048 976,943 978,390 973,673 975,726 973,214 973,673

Actual tangible s/h's $ 1,109,732 $ 1,095,464 $ 1,148,746 $ 1,141,269 $ 1,146,023 $ 1,113,151 $ 1,109,732 $ 1,146,023equity (non-GAAP)

Actual total assets (GAAP) $ 14,897,207 $ 13,890,550 $ 13,400,618 $ 13,039,674 $ 12,892,653 $ 12,862,395 $ 14,897,207 $ 12,892,653

Intangibles 973,214 975,048 976,943 978,390 973,673 975,726 973,214 973,673

Actual tangible assets $ 13,923,993 $ 12,915,502 $ 12,423,675 $ 12,061,284 $ 11,918,980 $ 11,886,669 $ 13,923,993 $ 11,918,980(non-GAAP)

(A) Tax effect is calculated based on respective periods effective taxrate.

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

RECONCILIATION OF GAAP TO NON-GAAP

Six Months Ended

2020 2019 June 30,

Second First Fourth Third Second First

Quarter Quarter Quarter Quarter Quarter Quarter 2020 2019

(1) Return onAverage Equity

Return on avg s/h's equity 3.85 % 0.38 % 7.15 % 6.97 % 8.90 % 8.86 % 2.12 % 8.88 %(GAAP)

Effect of adjustment for 3.87 % 0.82 % 6.60 % 6.41 % 8.25 % 8.55 % 2.37 % 8.40 % intangible assets

Return on avgtangible s/h's 7.72 % 1.20 % 13.75 % 13.38 % 17.15 % 17.41 % 4.49 % 17.28 %equity(non-GAAP)

Return on avg s/h's equity 3.85 % 0.38 % 7.15 % 6.97 % 8.90 % 8.86 % 2.12 % 8.88 %(GAAP)

Effect of exclusions 1.77 % 1.72 % -0.18 % 0.46 % 0.02 % - % 1.85 % 0.01 % from net income

Return on avg s/h's equity 5.62 % 2.10 % 6.97 % 7.43 % 8.92 % 8.86 % 3.97 % 8.89 %with excl.(non-GAAP)

Effect of adjustment for 5.40 % 2.31 % 6.44 % 6.80 % 8.28 % 8.55 % 3.97 % 8.41 % intangible assets

Return on avgtangible s/h'sequity with 11.02 % 4.41 % 13.41 % 14.23 % 17.20 % 17.41 % 7.94 % 17.30 %exclusions(non-GAAP)

(2) Return onAverage Assets

Return on avg 0.55 % 0.06 % 1.16 % 1.16 % 1.47 % 1.44 % 0.32 % 1.45 %assets (GAAP)

Effect of adjustment for 0.08 % 0.05 % 0.14 % 0.14 % 0.17 % 0.17 % 0.07 % 0.18 % intangible assets

Return on avgtangible assets 0.63 % 0.11 % 1.30 % 1.30 % 1.64 % 1.61 % 0.39 % 1.63 %(non-GAAP)

Return on avg 0.55 % 0.06 % 1.16 % 1.16 % 1.47 % 1.44 % 0.32 % 1.45 %assets (GAAP)

Effect of exclusions 0.25 % 0.27 % -0.03 % 0.07 % - % - % 0.27 % - % from net income

Return on avgassets with 0.80 % 0.33 % 1.13 % 1.23 % 1.47 % 1.44 % 0.59 % 1.45 %exclusions(non-GAAP)

Effect of adjustment for 0.10 % 0.07 % 0.14 % 0.16 % 0.17 % 0.17 % 0.09 % 0.18 % intangible assets

Return on avgtangible assets 0.90 % 0.40 % 1.27 % 1.39 % 1.64 % 1.61 % 0.68 % 1.63 %with exclusions(non-GAAP)

(3) ShareholderEquity Ratio

Shareholders'equity to 13.98 % 14.91 % 15.86 % 16.26 % 16.44 % 16.24 % 13.98 % 16.44 %actual assets(GAAP)

Effect of adjustment for 6.01 % 6.43 % 6.61 % 6.80 % 6.82 % 6.88 % 6.01 % 6.82 % intangible assets

Tangiblecapital ratio 7.97 % 8.48 % 9.25 % 9.46 % 9.62 % 9.36 % 7.97 % 9.62 %(non-GAAP)

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Six Months Ended

2020 2019 June 30,

Second First Fourth Third Second First

Quarter Quarter Quarter Quarter Quarter Quarter 2020 2019

Interest income $ 125,630 $ 131,887 $ 135,119 $ 135,927 $ 139,285 $ 138,578 $ 257,517 $ 277,863(FTE)

Interest expense 18,173 23,571 24,263 25,651 25,062 23,947 41,744 49,009

Net Interest $ 107,457 $ 108,316 $ 110,856 $ 110,276 $ 114,223 $ 114,631 $ 215,773 $ 228,854income (FTE)

Total noninterest $ 64,170 $ 37,570 $ 37,456 $ 37,953 $ 41,960 $ 35,885 $ 101,740 $ 77,845income

Securities gains 31 - - 343 (8) 13 31 5 (losses)

MSR valuation (4,951) (9,571) 1,296 (3,132) - - (14,522) - adjustment

Total adjustednoninterest $ 69,090 $ 47,141 $ 36,160 $ 40,742 $ 41,968 $ 35,872 $ 116,231 $ 77,840income

Total noninterest $ 118,285 $ 115,041 $ 95,552 $ 96,500 $ 93,290 $ 88,832 $ 233,326 $ 182,122expense

Amortization of 1,834 1,895 1,946 1,996 2,053 2,110 3,729 4,163 intangibles

Merger-related - - 76 24 179 - - 179 expenses

Debt extinguishment 90 - - 54 - - 90 - penalty

COVID-19 related 6,257 2,903 - - - - 9,160 - expenses

Provision for unfunded 2,600 3,400 - - - - 6,000 - commitments

Total adjustednoninterest $ 107,504 $ 106,843 $ 93,530 $ 94,426 $ 91,058 $ 86,722 $ 214,347 $ 177,780expense

Efficiency Ratio 68.92 % 78.86 % 64.43 % 65.10 % 59.73 % 59.02 % 73.49 % 59.38 %(GAAP)

(4) AdjustedEfficiency Ratio 60.89 % 68.73 % 63.62 % 62.53 % 58.30 % 57.62 % 64.56 % 57.97 %(non-GAAP)

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SOURCE Renasant Corporation