Renasant Corporation

01/25/2022 | Press release | Distributed by Public on 01/25/2022 15:36

RENASANT CORPORATION ANNOUNCES EARNINGS FOR THE FOURTH QUARTER OF 2021 - Form 8-K

RENASANT CORPORATION ANNOUNCES
EARNINGS FOR THE FOURTH QUARTER OF 2021

TUPELO, MISSISSIPPI (January 25, 2022) - Renasant Corporation (NASDAQ: RNST) (the "Company") today announced earnings results for the fourth quarter of 2021. Net income for the fourth quarter of 2021 was $37.1 million, as compared to $31.5 million for the fourth quarter of 2020. Basic and diluted earnings per share ("EPS") were $0.66 for the fourth quarter of 2021, as compared to basic and diluted EPS of $0.56 for the fourth quarter of 2020.

Net income for the year ended December 31, 2021, was $175.9 million, as compared to net income of $83.7 million for the same period in 2020. Basic and diluted EPS were $3.13 and $3.12, respectively, for 2021, as compared to basic and diluted EPS of $1.49 and $1.48, respectively, for 2020.

"I am proud of the Renasant team and the efforts they put forth in 2021. We generated strong loan production in the fourth quarter and throughout the year, had solid earnings, strengthened capital and have considerable balance sheet liquidity heading into 2022," commented C. Mitchell Waycaster, Renasant President and Chief Executive Officer. "We believe that the economic strength of our markets is good and business activity is vibrant. Our focus remains on producing loan growth and on initiatives designed to improve profitability."

Quarterly Highlights

Earnings
•Net income for the fourth quarter of 2021 was $37.1 million with diluted EPS of $0.66 and adjusted diluted EPS (non-GAAP)(1) of $0.68
•Net interest income (fully tax equivalent) and core net interest income (fully tax equivalent) (non-GAAP)(1) for the fourth quarter of 2021 were $103.2 and $100.0 million, respectively. Core net interest income increased $1.7 million from the third quarter of 2021
•For the fourth quarter of 2021, net interest margin was 2.81%, down 12 basis points on a linked quarter basis, and core net interest margin (non-GAAP)(1) was 2.73%, down 3 basis points on a linked quarter basis
•Cost of total deposits was 18 basis points for the fourth quarter of 2021, down 3 basis points on a linked quarter basis
1


•Noninterest income, excluding mortgage banking income and swap termination gains, for the fourth quarter of 2021 increased on a linked quarter basis, highlighting the Company's diverse revenue streams
•The Company recognized a $4.7 million gain on terminated swaps with a total notional amount of $100 million on future FHLB borrowings that are no longer expected to occur
•The mortgage division generated $1.17 billion in interest rate lock volume during the fourth quarter of 2021 and $5.88 billion for the year ended December 31, 2021
•Fourth quarter noninterest expense decreased by $2.9 million on a linked quarter basis, primarily driven by a decrease in salaries and employee benefits expense resulting from ongoing efficiency initiatives
•The Company incurred a debt prepayment penalty of $6.1 million in connection with the prepayment of a $150 million long-term advance from the FHLB

Balance Sheet
•Loans, excluding Paycheck Protection Program ("PPP") loans (non-GAAP)(1), grew modestly as compared to the balance at September 30, 2021 and increased $157.6 million, or 1.61%, year over year
•The securities portfolio at the end of 2021 increased $258.0 million on a linked quarter basis
•The Company established a held-to-maturity securities portfolio during the fourth quarter, which had a balance of $416.0 million at December 31, 2021
•Deposits at December 31, 2021 increased $651.0 million on a linked quarter basis, and noninterest bearing deposits represented 33.93% of total deposits as of the end of 2021

Capital
•During November 2021, the Company completed the public offering and sale of $200 million of its 3.00% fixed-to-floating rate subordinated notes due 2031
•The Company redeemed $15 million in subordinated notes in October 2021 and $30 million in December 2021, with an additional $30 million to be redeemed on March 1, 2022
•The Company adopted a $50 million stock repurchase program that will remain in effect through October 2022; however, there was no buyback activity during the fourth quarter of 2021 and no current intent to repurchase stock

Credit Quality
•The Company recorded a negative provision for credit losses on loans of $500 thousand and a negative provision for unfunded commitments (recorded in other noninterest expense) of $300 thousand for the fourth quarter of 2021
•Allowance for credit losses on loans to total loans and the allowance to total loans (excluding PPP loans) (non-GAAP)(1) decreased on a linked quarter basis to 1.64% and 1.65%, respectively, at December 31, 2021
•The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 323.14% at December 31, 2021 as compared to 299.68% at September 30, 2021
•Net loan charge-offs for the fourth quarter of 2021 were $5.4 million, or 0.21% of average loans on an annualized basis, and net loan charge-offs for all of 2021 were $10.3 million, or 0.10% of average loans
•Credit metrics improved on a linked quarter basis with nonperforming loans to total loans decreasing six basis points to 0.51% and classified loans to total loans decreasing 27 basis points to 1.60% at year end
•Loan deferrals were approximately 0.01% of the Company's loan portfolio as of December 31, 2021, down from approximately 1.5% as of December 31, 2020

(1)A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading "Non-GAAP Financial Measures" explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.
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Income Statement
(Dollars in thousands, except per share data) Three Months Ended Twelve Months Ended
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020
Interest income
Loans held for investment $ 98,478 $ 102,627 $ 109,721 $ 112,006 $ 112,157 $ 422,832 $ 454,241
Loans held for sale 3,652 2,377 3,604 2,999 3,083 12,632 12,191
Securities 9,221 8,416 7,321 6,574 6,594 31,532 30,511
Other 568 593 345 183 92 1,689 1,189
Total interest income 111,919 114,013 120,991 121,762 121,926 468,685 498,132
Interest expense
Deposits 6,056 6,972 7,669 8,279 9,841 28,976 54,016
Borrowings 4,381 3,749 3,743 3,835 3,958 15,708 17,319
Total interest expense 10,437 10,721 11,412 12,114 13,799 44,684 71,335
(Recovery) provision for credit losses
(Recovery) provision for loan losses (500) (1,200) - - 9,000 (1,700) 85,350
Provision for credit losses on HTM securities 32 - - - - 32 -
Provision for other credit losses - - - - 1,500 - 1,500
Total (recovery) provision for credit losses (468) (1,200) - - 10,500 (1,668) 86,850
Net interest income after (recovery) provision for credit losses 101,950 104,492 109,579 109,648 97,627 425,669 339,947
Noninterest income 47,582 50,755 47,610 81,037 62,864 226,984 235,532
Noninterest expense 101,115 103,999 108,777 115,935 122,152 429,826 471,988
Income before income taxes 48,417 51,248 48,412 74,750 38,339 222,827 103,491
Income taxes 11,363 11,185 7,545 16,842 6,818 46,935 19,840
Net income $ 37,054 $ 40,063 $ 40,867 $ 57,908 $ 31,521 $ 175,892 $ 83,651
Adjusted net income (non-GAAP)(1)
$ 38,232 $ 40,315 $ 41,169 $ 48,244 $ 38,131 $ 167,951 $ 109,115
Adjusted pre-provision net revenue ("PPNR") (non-GAAP)(1)
$ 49,190 $ 50,171 $ 48,797 $ 62,266 $ 57,392 $ 210,424 $ 231,136
Basic earnings per share $ 0.66 $ 0.71 $ 0.73 $ 1.03 $ 0.56 $ 3.13 $ 1.49
Diluted earnings per share 0.66 0.71 0.72 1.02 0.56 3.12 1.48
Adjusted diluted earnings per share (non-GAAP)(1)
0.68 0.71 0.73 0.85 0.68 2.98 1.93
Average basic shares outstanding 55,751,487 56,146,285 56,325,717 56,240,201 56,197,847 56,114,666 56,270,566
Average diluted shares outstanding 56,105,050 56,447,184 56,635,898 56,519,199 56,489,809 56,424,484 56,468,165
Cash dividends per common share $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.88 $ 0.88

(1)A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading "Non-GAAP Financial Measures" explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.
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Performance Ratios
Three Months Ended Twelve Months Ended
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020
Return on average assets 0.89 % 0.99 % 1.04 % 1.54 % 0.84 % 1.11 % 0.58 %
Adjusted return on average assets (non-GAAP)(1)
0.92 0.99 1.04 1.29 1.02 1.06 0.75
Return on average tangible assets (non-GAAP)(1)
0.98 1.08 1.14 1.69 0.94 1.21 0.66
Adjusted return on average tangible assets (non-GAAP)(1)
1.01 1.09 1.14 1.41 1.13 1.16 0.85
Return on average equity 6.59 7.16 7.40 10.81 5.88 7.96 3.96
Adjusted return on average equity (non-GAAP)(1)
6.80 7.21 7.46 9.01 7.11 7.60 5.16
Return on average tangible equity (non-GAAP)(1)
11.94 13.05 13.54 19.93 11.26 14.53 7.83
Adjusted return on average tangible equity (non-GAAP)(1)
12.31 13.13 13.64 16.68 13.52 13.89 10.06
Efficiency ratio (fully tax equivalent) 67.04 66.77 68.49 60.29 70.65 65.35 70.53
Adjusted efficiency ratio (non-GAAP)(1)
64.18 66.06 67.28 63.85 64.35 65.32 64.00
Dividend payout ratio 33.33 30.99 30.14 21.36 39.29 28.12 59.06
Effective Tax Rate 23.53 21.83 21.62 22.59 17.91 22.41 19.40

Capital and Balance Sheet Ratios
As of
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Shares Outstanding 55,756,233 55,747,407 56,350,878 56,294,346 56,200,487
Market Value Per Share $ 37.95 $ 36.05 $ 40.00 $ 41.38 $ 33.68
Book Value Per Share 39.63 39.53 39.11 38.61 37.95
Tangible Book Value Per Share (non-GAAP)(1)
22.35 22.22 21.95 21.41 20.69
Shareholders' Equity to Assets 13.15 % 13.64 % 13.75 % 13.91 % 14.29 %
Tangible Common Equity Ratio (non-GAAP)(1)
7.86 8.15 8.22 8.23 8.33
Leverage Ratio 9.15 9.18 9.30 9.49 9.37
Common equity tier 1 capital ratio 11.18 11.02 11.14 11.05 10.93
Tier 1 risk-based capital ratio 12.10 11.94 12.07 12.00 11.91
Total risk-based capital ratio 16.14 14.66 15.11 15.09 15.07

(1)A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading "Non-GAAP Financial Measures" explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.
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Noninterest Income and Noninterest Expense
(Dollars in thousands) Three Months Ended Twelve Months Ended
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020
Noninterest income
Service charges on deposit accounts $ 9,751 $ 9,337 $ 9,458 $ 8,023 $ 7,938 $ 36,569 $ 31,326
Fees and commissions 3,885 3,837 4,110 3,900 3,616 15,732 13,043
Insurance commissions 2,353 2,829 2,422 2,237 2,193 9,841 8,990
Wealth management revenue 5,273 5,371 5,019 4,792 4,314 20,455 16,504
Mortgage banking income 14,726 23,292 20,853 50,733 39,760 109,604 150,499
Swap termination gains 4,676 - - - - 4,676 -
Net gains on sales of securities 49 764 - 1,357 15 2,170 46
BOLI income 2,048 1,602 1,644 2,072 1,868 7,366 5,627
Other 4,821 3,723 4,104 7,923 3,160 20,571 9,497
Total noninterest income $ 47,582 $ 50,755 $ 47,610 $ 81,037 $ 62,864 $ 226,984 $ 235,532
Noninterest expense
Salaries and employee benefits $ 62,523 $ 69,115 $ 70,293 $ 78,696 $ 74,432 $ 280,627 $ 302,388
Data processing 5,346 5,277 5,652 5,451 5,373 21,726 20,685
Net occupancy and equipment 11,177 11,748 11,374 12,538 13,153 46,837 54,080
Other real estate owned (60) 168 104 41 683 253 2,754
Professional fees 3,209 2,972 2,674 2,921 2,938 11,776 11,293
Advertising and public relations 2,929 2,922 3,100 3,252 1,762 12,203 10,322
Intangible amortization 1,424 1,481 1,539 1,598 1,659 6,042 7,121
Communications 2,088 2,198 2,291 2,292 2,168 8,869 8,866
Restructuring charges 61 - 15 292 7,365 368 7,365
Swap termination charges - - - - 2,040 - 2,040
Debt prepayment penalty 6,123 - - - 3 6,123 121
Other 6,295 8,118 11,735 8,854 10,576 35,002 44,953
Total noninterest expense $ 101,115 $ 103,999 $ 108,777 $ 115,935 $ 122,152 $ 429,826 $ 471,988

Mortgage Banking Income
(Dollars in thousands) Three Months Ended Twelve Months Ended
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020
Gain on sales of loans, net $ 10,801 $ 20,116 $ 17,581 $ 33,901 $ 36,080 $ 82,399 $ 150,406
Fees, net 4,320 3,420 4,519 4,902 5,318 17,161 18,914
Mortgage servicing income, net (395) (244) (1,247) (1,631) (3,606) (3,517) (7,095)
MSR valuation adjustment - - - 13,561 1,968 13,561 (11,726)
Total mortgage banking income $ 14,726 $ 23,292 $ 20,853 $ 50,733 $ 39,760 $ 109,604 $ 150,499
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Balance Sheet
(Dollars in thousands) As of
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Assets
Cash and cash equivalents $ 1,877,965 $ 1,476,141 $ 1,605,488 $ 1,261,916 $ 633,203
Securities held to maturity, at amortized cost 415,975 - - - -
Securities available for sale, at fair value 2,386,680 2,544,643 2,163,820 1,536,041 1,343,457
Loans held for sale, at fair value 453,533 452,869 448,959 502,002 417,771
Loans:
Non purchased 9,011,012 8,875,880 8,892,544 9,292,502 9,419,540
Purchased 1,009,902 1,140,944 1,256,698 1,395,906 1,514,107
Total loans 10,020,914 10,016,824 10,149,242 10,688,408 10,933,647
Allowance for credit losses on loans (164,171) (170,038) (172,354) (173,106) (176,144)
Loans, net 9,856,743 9,846,786 9,976,888 10,515,302 10,757,503
Premises and equipment, net 293,122 294,499 293,203 300,917 300,496
Other real estate owned 2,540 4,705 4,939 5,971 5,972
Goodwill 939,683 939,683 939,683 939,683 939,683
Other intangibles 24,098 25,522 27,003 28,542 30,139
Bank-owned life insurance 287,359 286,088 279,444 233,508 230,609
Mortgage servicing rights 89,018 86,387 84,912 80,263 62,994
Other assets 183,595 198,227 198,047 218,426 207,785
Total assets $ 16,810,311 $ 16,155,550 $ 16,022,386 $ 15,622,571 $ 14,929,612
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest-bearing $ 4,718,124 $ 4,492,650 $ 4,349,135 $ 4,135,360 $ 3,685,048
Interest-bearing 9,187,600 8,762,179 8,766,216 8,601,548 8,374,033
Total deposits 13,905,724 13,254,829 13,115,351 12,736,908 12,059,081
Short-term borrowings 13,947 11,253 14,933 12,154 21,340
Long-term debt 471,209 468,863 469,406 467,660 474,970
Other liabilities 209,578 216,661 218,889 232,148 241,488
Total liabilities 14,600,458 13,951,606 13,818,579 13,448,870 12,796,879
Shareholders' equity:
Preferred stock - - - - -
Common stock $ 296,483 $ 296,483 $ 296,483 $ 296,483 $ 296,483
Treasury stock (118,027) (118,288) (97,249) (98,949) (101,554)
Additional paid-in capital 1,300,192 1,298,022 1,295,879 1,294,911 1,296,963
Retained earnings 741,648 717,033 689,444 661,117 615,773
Accumulated other comprehensive income (10,443) 10,694 19,250 20,139 25,068
Total shareholders' equity
2,209,853 2,203,944 2,203,807 2,173,701 2,132,733
Total liabilities and shareholders' equity
$ 16,810,311 $ 16,155,550 $ 16,022,386 $ 15,622,571 $ 14,929,612

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Net Interest Income and Net Interest Margin
(Dollars in thousands) Three Months Ended
December 31, 2021 September 30, 2021 December 31, 2020
Average
Balance 		Interest
Income/
Expense 		Yield/
Rate 		Average
Balance 		Interest
Income/
Expense 		Yield/
Rate 		Average
Balance 		Interest
Income/
Expense 		Yield/
Rate
Interest-earning assets:
Non purchased loans $ 8,806,254 $ 85,362 3.85 % $ 8,690,443 $ 84,427 3.86 % $ 8,167,922 $ 81,626 3.98 %
Purchased loans 1,079,630 13,823 5.09 % 1,200,429 15,840 5.24 % 1,598,593 21,560 5.37 %
PPP loans 62,726 485 3.07 % 126,870 3,503 10.95 % 1,252,990 10,271 3.26 %
Total loans 9,948,610 99,670 3.98 % 10,017,742 103,770 4.11 % 11,019,505 113,457 4.10 %
Loans held for sale 498,724 3,652 2.93 % 451,586 2,376 2.13 % 389,435 3,083 3.15 %
Taxable securities(1)
2,245,249 7,293 1.30 % 1,942,647 6,688 1.38 % 985,695 4,953 2.00 %
Tax-exempt securities 392,700 2,503 2.55 % 324,219 2,297 2.83 % 283,413 2,238 3.14 %
Total securities 2,637,949 9,796 1.49 % 2,266,866 8,985 1.59 % 1,269,108 7,191 2.25 %
Interest-bearing balances with banks 1,522,433 568 0.15 % 1,520,227 592 0.15 % 381,919 92 0.10 %
Total interest-earning assets 14,607,716 113,686 3.09 % 14,256,421 115,723 3.23 % 13,059,967 123,823 3.77 %
Cash and due from banks 201,941 195,095 196,552
Intangible assets 964,575 965,960 970,624
Other assets 676,408 712,673 670,912
Total assets $ 16,450,640 $ 16,130,149 $ 14,898,055
Interest-bearing liabilities:
Interest-bearing demand(2)
$ 6,460,178 $ 3,487 0.21 % $ 6,231,718 $ 3,821 0.24 % $ 5,607,906 $ 4,380 0.31 %
Savings deposits 1,045,784 151 0.06 % 1,006,847 192 0.08 % 830,304 165 0.08 %
Time deposits 1,434,162 2,418 0.67 % 1,506,192 2,959 0.78 % 1,752,787 5,296 1.20 %
Total interest-bearing deposits 8,940,124 6,056 0.27 % 8,744,757 6,972 0.32 % 8,190,997 9,841 0.48 %
Borrowed funds 434,546 4,381 4.03 % 482,709 3,749 3.08 % 516,414 3,958 3.05 %
Total interest-bearing liabilities 9,374,670 10,437 0.44 % 9,227,466 10,721 0.46 % 8,707,411 13,799 0.63 %
Noninterest-bearing deposits 4,633,885 4,470,262 3,808,595
Other liabilities 210,404 212,990 249,674
Shareholders' equity 2,231,681 2,219,431 2,132,375
Total liabilities and shareholders' equity $ 16,450,640 $ 16,130,149 $ 14,898,055
Net interest income/ net interest margin $ 103,249 2.81 % $ 105,002 2.93 % $ 110,024 3.35 %
Cost of funding 0.30 % 0.31 % 0.44 %
Cost of total deposits 0.18 % 0.21 % 0.33 %
(1) U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.
(2) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

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Net Interest Income and Net Interest Margin, continued
(Dollars in thousands) Twelve Months Ended
December 31, 2021 December 31, 2020
Average
Balance 		Interest
Income/
Expense 		Yield/
Rate 		Average
Balance 		Interest
Income/
Expense 		Yield/
Rate
Interest-earning assets:
Non purchased loans $ 8,595,967 $ 334,492 3.79 % $ 7,927,817 $ 333,296 4.20 %
Purchased loans 1,265,144 68,010 5.38 % 1,807,354 101,785 5.63 %
PPP loans 448,959 24,794 7.38 % 858,385 23,605 2.75 %
Total loans 10,310,070 427,296 4.15 % 10,593,556 458,686 4.33 %
Loans held for sale 454,727 12,632 2.78 % 361,391 12,191 3.37 %
Taxable securities(1)
1,691,531 24,370 1.44 % 1,021,999 24,102 2.36 %
Tax-exempt securities 335,399 9,418 2.81 % 259,705 8,848 3.41 %
Total securities 2,026,930 33,788 1.67 % 1,281,704 32,950 2.57 %
Interest-bearing balances with banks 1,263,364 1,688 0.13 % 385,810 1,190 0.31 %
Total interest-earning assets 14,055,091 475,404 3.38 % 12,622,461 505,017 4.00 %
Cash and due from banks 199,705 201,815
Intangible assets 966,733 973,287
Other assets 684,457 705,886
Total assets $ 15,905,986 $ 14,503,449
Interest-bearing liabilities:
Interest-bearing demand(2)
$ 6,177,944 $ 15,308 0.25 % $ 5,277,374 $ 23,995 0.45 %
Savings deposits 976,616 698 0.07 % 764,146 758 0.10 %
Time deposits 1,539,763 12,970 0.84 % 1,952,213 29,263 1.50 %
Total interest-bearing deposits 8,694,323 28,976 0.33 % 7,993,733 54,016 0.68 %
Borrowed funds 470,993 15,708 3.34 % 765,769 17,319 2.26 %
Total interest-bearing liabilities 9,165,316 44,684 0.49 % 8,759,502 71,335 0.81 %
Noninterest-bearing deposits 4,310,834 3,391,619
Other liabilities 220,427 237,738
Shareholders' equity 2,209,409 2,114,590
Total liabilities and shareholders' equity $ 15,905,986 $ 14,503,449
Net interest income/ net interest margin $ 430,720 3.07 % $ 433,682 3.44 %
Cost of funding 0.33 % 0.59 %
Cost of total deposits 0.22 % 0.47 %
(1) U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.
(2) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

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Supplemental Margin Information
(Dollars in thousands) Three Months Ended Twelve Months Ended
Dec 31, 2021 Sep 30, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020
Earning asset mix:
Loans held for investment excluding PPP loans 67.68 % 69.38 % 74.79 % 70.16 % 77.13 %
PPP loans 0.43 0.89 9.59 3.19 6.80
Loans held for sale 3.41 3.17 2.98 3.24 2.86
Securities 18.06 15.90 9.72 14.42 10.15
Interest-bearing balances with banks 10.42 10.66 2.92 8.99 3.06
Total 100.00 % 100.00 % 100.00 % 100.00 % 100.00 %
Funding sources mix:
Noninterest-bearing demand 33.08 % 32.64 % 30.43 % 32.00 % 27.91 %
Interest-bearing demand 46.11 45.49 44.81 45.84 43.43
Savings 7.47 7.35 6.63 7.25 6.29
Time deposits 10.24 11.00 14.00 11.42 16.07
Borrowed funds 3.10 3.52 4.13 3.49 6.30
Total 100.00 % 100.00 % 100.00 % 100.00 % 100.00 %
Net interest income collected on problem loans $ 578 $ 316 $ 128 $ 4,412 $ 1,011
Total accretion on purchased loans 2,187 2,871 4,130 10,783 19,248
Total impact on net interest income $ 2,765 $ 3,187 $ 4,258 $ 15,195 $ 20,259
Impact on net interest margin 0.08 % 0.09 % 0.13 % 0.11 % 0.16 %
Impact on loan yield 0.11 % 0.13 % 0.15 % 0.15 % 0.18 %
Interest income on PPP loans $ 485 $ 3,503 $ 10,271 $ 24,794 $ 23,605
PPP impact on net interest margin - % 0.07 % (0.01) % 0.08 % (0.05) %
PPP impact on loan yield - % 0.09 % (0.10) % 0.06 % (0.13) %
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Loan Portfolio
(Dollars in thousands) As of
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Loan Portfolio:
Commercial, financial, agricultural $ 1,364,879 $ 1,368,557 $ 1,387,702 $ 1,388,423 $ 1,408,281
Lease financing 76,125 79,215 74,003 75,256 75,862
Real estate - construction 1,104,896 1,091,296 1,051,359 955,918 858,104
Real estate - 1-4 family mortgages 2,724,246 2,724,743 2,702,091 2,686,061 2,698,308
Real estate - commercial mortgages 4,549,037 4,535,730 4,530,169 4,549,027 4,554,852
Installment loans to individuals 143,340 149,821 156,987 172,859 209,537
Subtotal 9,962,523 9,949,362 9,902,311 9,827,544 9,804,944
PPP 58,391 67,462 246,931 860,864 1,128,703
Total loans $ 10,020,914 $ 10,016,824 $ 10,149,242 $ 10,688,408 $ 10,933,647

Credit Quality and Allowance for Credit Losses on Loans
(Dollars in thousands) As of
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Nonperforming Assets:
Non purchased
Non purchased nonaccruing loans $ 30,751 $ 29,266 $ 27,101 $ 24,794 $ 20,369
Non purchased loans 90 days or more past due 1,074 908 800 2,235 3,783
Total non purchased nonperforming loans 31,825 30,174 27,901 27,029 24,152
Non purchased other real estate owned 951 2,252 1,675 2,292 2,045
Total non purchased nonperforming assets 32,776 32,426 29,576 29,321 26,197
Purchased
Purchased nonaccruing loans $ 18,613 $ 26,492 $ 27,690 $ 28,947 $ 31,051
Purchased loans 90 days or more past due 367 74 945 129 267
Total purchased nonperforming loans 18,980 26,566 28,635 29,076 31,318
Purchased other real estate owned 1,589 2,453 3,264 3,679 3,927
Total purchased nonperforming assets $ 20,569 $ 29,019 $ 31,899 $ 32,755 $ 35,245
Total nonperforming loans $ 50,805 $ 56,740 $ 56,536 $ 56,105 $ 55,470
Total nonperforming assets $ 53,345 $ 61,445 $ 61,475 $ 62,076 $ 61,442
Allowance for credit losses on loans $ 164,171 $ 170,038 $ 172,354 $ 173,106 $ 176,144
Net loan charge-offs (recoveries) $ 5,367 $ 1,116 $ 752 $ 3,038 $ 954
Annualized net loan charge-offs / average loans 0.21 % 0.04 % 0.03 % 0.11 % 0.03 %
Nonperforming loans / total loans 0.51 0.57 0.56 0.52 0.51
Nonperforming assets / total assets 0.32 0.38 0.38 0.40 0.41
Allowance for credit losses on loans / total loans 1.64 1.70 1.70 1.62 1.61
Allowance for credit losses on loans / nonperforming loans 323.14 299.68 304.86 308.54 317.55
Nonperforming loans / total loans excluding PPP loans (non-GAAP)(1)
0.51 0.57 0.57 0.57 0.57
Nonperforming assets / total assets excluding PPP loans (non-GAAP)(1)
0.32 0.38 0.39 0.42 0.45
Allowance for credit losses on loans / total loans excluding PPP loans (non-GAAP)(1)
1.65 1.71 1.74 1.76 1.80
(1)A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading "Non-GAAP Financial Measures" explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.
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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 26, 2022.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or https://services.choruscall.com/mediaframe/webcast.html?webcastid=T0utveqz. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2021 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 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 1882552 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 9, 2022.

ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 117-year-old financial services institution. Renasant has assets of approximately $16.8 billion and operates 199 banking, lending, mortgage, wealth management and insurance offices in Mississippi, Tennessee, Alabama, Florida, Georgia, North Carolina and South Carolina.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
This press release may contain, or incorporate by reference, statements about Renasant Corporation that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "projects," "anticipates," "intends," "estimates," "plans," "potential," "focus," "possible," "may increase," "may fluctuate," "will likely result," and similar expressions, or future or conditional verbs such as "will," "should," "would" and "could," are generally forward-looking in nature and not historical facts. Forward-looking statements include information about the Company's future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. The Company's management believes these forward-looking statements are reasonable, but they are all inherently subject to significant business, economic and competitive risks and uncertainties, many of which are beyond the Company's control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements, and such differences may be material. Prospective investors are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and, accordingly, investors should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

Important factors currently known to management that could cause our actual results to differ materially from those in forward-looking statements include the following: (i) the continued impact of the COVID-19 pandemic (and variants thereof) and related governmental response measures on the U.S. economy and the economies of the markets in which we operate; (ii) 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; (iii) the effect of economic conditions and interest rates on a national, regional or international basis; (iv) timing and success of the implementation of changes in operations to achieve enhanced earnings or effect cost savings; (v) competitive pressures in the consumer finance, commercial finance, insurance, financial services, asset management, retail banking, mortgage lending and auto lending industries; (vi) the financial resources of, and products available from, competitors; (vii) changes in laws and regulations as well as changes in accounting standards; (viii) changes in policy by regulatory agencies; (ix) changes in the securities and foreign exchange markets; (x) the Company's potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (xi) 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; (xii) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xiii) general economic, market or business conditions, including the impact of inflation; (xiv) changes in demand for loan products and financial services; (xv) concentration of credit exposure; (xvi) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xvii) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xviii) civil unrest, natural disasters, epidemics and other catastrophic events in the Company's geographic area; (xix) the impact, extent and timing of technological changes; and (xx) other circumstances, many of which are beyond management's control.
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Management believes that the assumptions underlying the Company's forward-looking statements are reasonable, but any of the assumptions could prove to be inaccurate. Investors are urged to carefully consider the risks described in the Company's filings with the Securities and Exchange Commission (the "SEC") from time to time, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.renasant.com and the SEC's website at www.sec.gov.

The Company undertakes no obligation, and specifically disclaims any obligation, to update or revise forward-looking statements, whether as a result of new information or to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by federal securities laws.

NON-GAAP FINANCIAL MEASURES:
In addition to results presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), this press release and the presentation slides furnished to the SEC on the same Form 8-K as this release contain non-GAAP financial measures, namely, (i) loans excluding Paycheck Protection Program ("PPP") loans, (ii) core loan yield, (iii) core net interest income and margin, (iv) adjusted pre-provision net revenue, (v) adjusted net income, (vi) adjusted diluted earnings per share, (vii) tangible book value per share, (viii) tangible common equity ratio, (ix) certain asset quality ratios (namely, loans 30-89 past due to total loans, classified loans to total loans, nonperforming loans to total loans, nonperforming assets to total assets, net charge-offs to average loans and the allowance for credit losses to total loans) in each case excluding PPP loans, (x) certain performance ratios (namely, the ratio of adjusted pre-provision net revenue to average assets, the return on average assets and on average equity, and the return on average tangible assets and on average tangible common equity (including each on an as-adjusted basis)), and (xi) the adjusted efficiency ratio. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and/or certain charges (such as, among others, COVID-19 related expenses, debt prepayment penalties, restructuring charges and asset valuation adjustments) with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof or, with respect to core loan yield and its asset quality measures, to exclude the Company's PPP loans. With respect to COVID-19 related expenses in particular, management added these expenses as a charge to exclude when calculating non-GAAP financial measures because the expenses included within this line item are readily quantifiable and possess the same characteristics with respect to management's inability to accurately predict the timing or amount thereof as the other charges excluded when calculating non-GAAP financial measures. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy; with respect to the core loan yield and certain asset quality measures, management excludes PPP loans, which bear an interest rate fixed by Small Business Administration ("SBA") regulations and are both forgivable and guaranteed by the SBA, to more clearly measure loan yields affected by competitive factors and potential loss in the Company's loan portfolio and the coverage therefor. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible, charges such as debt prepayment penalties, restructuring charges and COVID-19 related expenses, and the amount of PPP loans can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution's regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company's results to information provided in other regulatory reports and the results of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below under the caption "Non-GAAP Reconciliations".

None of the non-GAAP financial information that the Company has included in this release or the accompanying presentation slides are intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company's calculations may not be comparable to similarly titled measures presented by other companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.

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Non-GAAP Reconciliations

(Dollars in thousands, except per share data) Three Months Ended Twelve Months Ended
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020
Adjusted Pre-Provision Net Revenue ("PPNR")
Net Income (GAAP) $ 37,054 $ 40,063 $ 40,867 $ 57,908 $ 31,521 $ 175,892 $ 83,651
Income taxes 11,363 11,185 7,545 16,842 6,818 46,935 19,840
Provision for credit losses (including unfunded commitments) (768) (1,400) - - 11,000 (2,168) 96,050
Pre-provision net revenue (non-GAAP) $ 47,649 $ 49,848 $ 48,412 $ 74,750 $ 49,339 $ 220,659 $ 199,541
Debt prepayment penalties 6,123 - - - 3 6,123 121
Swap termination gains (4,676) - - - - (4,676) -
MSR valuation adjustment - - - (13,561) (1,968) (13,561) 11,726
Restructuring charges 61 - 15 292 7,365 368 7,365
Swap termination charges - - - - 2,040 - 2,040
COVID-19 related expenses(1)
33 323 370 785 613 1,511 10,343
Adjusted pre-provision net revenue (non-GAAP) $ 49,190 $ 50,171 $ 48,797 $ 62,266 $ 57,392 $ 210,424 $ 231,136
Adjusted Net Income and Adjusted Tangible Net Income
Net Income (GAAP) $ 37,054 $ 40,063 $ 40,867 $ 57,908 $ 31,521 $ 175,892 $ 83,651
Amortization of Intangibles 1,424 1,481 1,539 1,598 1,659 6,042 7,121
Tax effect of adjustments noted above(2)
(335) (323) (333) (361) (297) (1,354) (1,382)
Tangible Net Income (non-GAAP) $ 38,143 $ 41,221 $ 42,073 $ 59,145 $ 32,883 $ 180,580 $ 89,390
Net Income (GAAP) $ 37,054 $ 40,063 $ 40,867 $ 57,908 $ 31,521 $ 175,892 $ 83,651
Debt prepayment penalties 6,123 - - - 3 6,123 121
Swap termination gain (4,676) - - - - (4,676) -
MSR valuation adjustment - - - (13,561) (1,968) (13,561) 11,726
Restructuring charges 61 - 15 292 7,365 368 7,365
Swap termination charges - - - - 2,040 - 2,040
COVID-19 related expenses(1)
33 323 370 785 613 1,511 10,343
Tax effect of adjustments noted above(2)
(363) (71) (83) 2,820 (1,443) 2,294 (6,131)
Adjusted Net Income (non-GAAP) $ 38,232 $ 40,315 $ 41,169 $ 48,244 $ 38,131 $ 167,951 $ 109,115
Amortization of Intangibles 1,424 1,481 1,539 1,598 1,659 6,042 7,121
Tax effect of adjustments noted above(2)
(335) (323) (333) (361) (297) (1,354) (1,382)
Adjusted Tangible Net Income (non-GAAP) $ 39,321 $ 41,473 $ 42,375 $ 49,481 $ 39,493 $ 172,639 $ 114,854
Tangible Assets and Tangible Shareholders' Equity
Average shareholders' equity (GAAP)
$ 2,231,681 $ 2,219,431 $ 2,213,743 $ 2,172,425 $ 2,132,375 $ 2,209,409 $ 2,114,590
Average intangible assets 964,575 965,960 967,430 969,001 970,624 966,733 973,287
Average tangible shareholders' equity (non-GAAP)
$ 1,267,106 $ 1,253,471 $ 1,246,313 $ 1,203,424 $ 1,161,751 $ 1,242,676 $ 1,141,303
Average assets (GAAP) $ 16,450,640 $ 16,130,149 $ 15,831,018 $ 15,203,691 $ 14,898,055 $ 15,905,986 $ 14,503,449
Average intangible assets 964,575 965,960 967,430 969,001 970,624 966,733 973,287
Average tangible assets (non-GAAP) $ 15,486,065 $ 15,164,189 $ 14,863,588 $ 14,234,690 $ 13,927,431 $ 14,939,253 $ 13,530,162
Shareholders' equity (GAAP)
$ 2,209,853 $ 2,203,944 $ 2,203,807 $ 2,173,701 $ 2,132,733 $ 2,209,853 $ 2,132,733
Intangible assets 963,781 965,205 966,686 968,225 969,823 963,781 969,823
Tangible shareholders' equity (non-GAAP)
$ 1,246,072 $ 1,238,739 $ 1,237,121 $ 1,205,476 $ 1,162,910 $ 1,246,072 $ 1,162,910
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(Dollars in thousands, except per share data) Three Months Ended Twelve Months Ended
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020
Total assets (GAAP) $ 16,810,311 $ 16,155,550 $ 16,022,386 $ 15,622,571 $ 14,929,612 $ 16,810,311 $ 14,929,612
Intangible assets 963,781 965,205 966,686 968,225 969,823 963,781 969,823
Total tangible assets (non-GAAP) $ 15,846,530 $ 15,190,345 $ 15,055,700 $ 14,654,346 $ 13,959,789 $ 15,846,530 $ 13,959,789
Adjusted Performance Ratios
Return on average assets (GAAP) 0.89 % 0.99 % 1.04 % 1.54 % 0.84 % 1.11 % 0.58 %
Adjusted return on average assets (non-GAAP) 0.92 % 0.99 % 1.04 % 1.29 % 1.02 % 1.06 % 0.75 %
Return on average tangible assets (non-GAAP) 0.98 % 1.08 % 1.14 % 1.69 % 0.94 % 1.21 % 0.66 %
Adjusted pre-provision net revenue to average assets (non-GAAP) 1.19 % 1.23 % 1.24 % 1.66 % 1.53 % 1.32 % 1.59 %
Adjusted return on average tangible assets (non-GAAP) 1.01 % 1.09 % 1.14 % 1.41 % 1.13 % 1.16 % 0.85 %
Return on average equity (GAAP) 6.59 % 7.16 % 7.40 % 10.81 % 5.88 % 7.96 % 3.96 %
Adjusted return on average equity (non-GAAP) 6.80 % 7.21 % 7.46 % 9.01 % 7.11 % 7.60 % 5.16 %
Return on average tangible equity (non-GAAP) 11.94 % 13.05 % 13.54 % 19.93 % 11.26 % 14.53 % 7.83 %
Adjusted return on average tangible equity (non-GAAP) 12.31 % 13.13 % 13.64 % 16.68 % 13.52 % 13.89 % 10.06 %
Adjusted Diluted Earnings Per Share
Average Diluted Shares Outstanding 56,105,050 56,447,184 56,635,898 56,519,199 56,489,809 56,424,484 56,468,165
Diluted earnings per share (GAAP) $ 0.66 $ 0.71 $ 0.72 $ 1.02 $ 0.56 $ 3.12 $ 1.48
Adjusted diluted earnings per share (non-GAAP) $ 0.68 $ 0.71 $ 0.73 $ 0.85 $ 0.68 $ 2.98 $ 1.93
Tangible Book Value Per Share
Shares Outstanding 55,756,233 55,747,407 56,350,878 56,294,346 56,200,487 55,756,233 56,200,487
Book Value Per Share (GAAP) $ 39.63 $ 39.53 $ 39.11 $ 38.61 $ 37.95 $ 39.63 $ 37.95
Tangible Book Value Per Share (non-GAAP) $ 22.35 $ 22.22 $ 21.95 $ 21.41 $ 20.69 $ 22.35 $ 20.69
Tangible Common Equity Ratio
Shareholders' Equity to Assets (GAAP) 13.15 % 13.64 % 13.75 % 13.91 % 14.29 % 13.15 % 14.29 %
Tangible Common Equity Ratio (non-GAAP) 7.86 % 8.15 % 8.22 % 8.23 % 8.33 % 7.86 % 8.33 %
Adjusted Efficiency Ratio
Net interest income (FTE) (GAAP) 103,249 105,002 111,205 111,264 110,024 430,720 433,682
Total Noninterest income (GAAP) 47,582 50,755 47,610 81,037 62,864 226,984 235,532
MSR Valuation Adjustment - - - 13,561 1,968 13,561 (11,726)
Swap termination gains 4,676 - - - - 4,676 -
Securities gains (losses) 49 764 - 1,357 15 2,170 46
Total adjusted noninterest income (non-GAAP) 42,857 49,991 47,610 66,119 60,881 206,577 247,212
Noninterest expense (GAAP) 101,115 103,999 108,777 115,935 122,152 429,826 471,988
Amortization of intangibles 1,424 1,481 1,539 1,598 1,659 6,042 7,121
Debt prepayment penalty 6,123 - - - 3 6,123 121
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(Dollars in thousands, except per share data) Three Months Ended Twelve Months Ended
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020
Swap termination charges - - - - 2,040 - 2,040
Restructuring charges 61 - 15 292 7,365 368 7,365
Provision for unfunded commitments (300) (200) - - 500 (500) 9,200
COVID-19 related expenses(1)
33 323 370 785 613 1,511 10,343
Total adjusted noninterest expense (non-GAAP) 93,774 102,395 106,853 113,260 109,972 416,282 435,798
Efficiency Ratio (GAAP) 67.04 % 66.77 % 68.49 % 60.29 % 70.65 % 65.35 % 70.53 %
Adjusted Efficiency Ratio (non-GAAP) 64.18 % 66.06 % 67.28 % 63.85 % 64.35 % 65.32 % 64.00 %
Core Net Interest Income and Core Net Interest Margin
Net interest income (FTE) (GAAP) $ 103,249 $ 105,002 $ 111,205 $ 111,264 $ 110,024 $ 430,720 $ 433,682
Net interest income collected on problem loans 578 316 1,339 2,180 128 4,412 1,011
Accretion recognized on purchased loans 2,187 2,871 2,638 3,088 4,130 10,783 19,248
Interest income recognized on PPP loans 485 3,503 10,120 10,687 10,271 24,794 23,605
Core net interest income (FTE) (non-GAAP) $ 99,999 $ 98,312 $ 97,108 $ 95,309 $ 95,495 $ 390,731 $ 389,818
Average earning assets (GAAP) $ 14,607,716 $ 14,256,421 $ 13,989,264 $ 13,358,677 $ 13,059,967 $ 14,055,091 $ 12,622,461
Average PPP loans 62,726 126,870 628,462 985,561 1,252,990 448,959 858,385
Average earning assets excluding PPP loans (non-GAAP) $ 14,544,990 $ 14,129,551 $ 13,360,802 $ 12,373,116 $ 11,806,977 $ 13,606,132 $ 11,764,076
Net interest margin (GAAP) 2.81 % 2.93 % 3.19 % 3.37 % 3.35 % 3.07 % 3.44 %
Core net interest margin (non-GAAP) 2.73 % 2.76 % 2.92 % 3.12 % 3.22 % 2.87 % 3.31 %
Core Loan Yield
Loan interest income (FTE) (GAAP) $ 99,670 $ 103,769 $ 110,785 $ 113,072 $ 113,457 $ 427,296 $ 458,686
Net interest income collected on problem loans 578 316 1,339 2,180 128 4,412 1,011
Accretion recognized on purchased loans 2,187 2,871 2,638 3,088 4,130 10,783 19,248
Interest income recognized on PPP loans 485 3,503 10,120 10,687 10,271 24,794 23,605
Core loan interest income (FTE) (non-GAAP) $ 96,420 $ 97,079 $ 96,688 $ 97,117 $ 98,928 $ 387,307 $ 414,822
Average loans (GAAP) $ 9,948,610 $ 10,017,742 $ 10,478,121 $ 10,802,991 $ 11,019,505 $ 10,310,070 $ 10,593,556
Average PPP loans 62,726 126,870 628,462 985,561 1,252,990 448,959 858,385
Average loans excluding PPP loans (non-GAAP) $ 9,885,884 $ 9,890,872 $ 9,849,659 $ 9,817,430 $ 9,766,515 $ 9,861,111 $ 9,735,171
Loan yield (GAAP) 3.98 % 4.11 % 4.24 % 4.24 % 4.10 % 4.15 % 4.33 %
Core loan yield (non-GAAP) 3.87 % 3.89 % 3.94 % 4.01 % 4.03 % 3.93 % 4.26 %
Adjusted Asset Quality Ratios
Total loans (GAAP) $ 10,020,914 $ 10,016,824 $ 10,149,242 $ 10,688,408 $ 10,933,647 $ 10,020,914 $ 10,933,647
PPP loans 58,391 67,462 246,931 860,864 1,128,703 58,391 1,128,703
Total loans excluding PPP loans (non-GAAP) $ 9,962,523 $ 9,949,362 $ 9,902,311 $ 9,827,544 $ 9,804,944 $ 9,962,523 $ 9,804,944
Loans 30-89 days past due $ 27,604 $ 14,806 $ 15,077 $ 21,801 $ 26,286 $ 27,604 $ 26,286
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(Dollars in thousands, except per share data) Three Months Ended Twelve Months Ended
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020
Loans 30-89 days past due / total loans (GAAP) 0.28 % 0.15 % 0.15 % 0.20 % 0.24 % 0.28 % 0.24 %
Loans 30-89 days past due / total loans excluding PPP loans (non-GAAP) 0.28 % 0.15 % 0.15 % 0.22 % 0.27 % 0.28 % 0.27 %
Classified loans $ 160,790 $ 187,223 $ 206,724 $ 229,243 $ 236,063 $ 160,790 $ 236,063
Classified loans / total loans (GAAP) 1.60 % 1.87 % 2.04 % 2.14 % 2.16 % 1.60 % 2.16 %
Classified loans / total loans excluding PPP loans (non-GAAP) 1.61 % 1.88 % 2.09 % 2.33 % 2.41 % 1.61 % 2.41 %
Nonperforming loans $ 50,805 $ 56,740 $ 56,536 $ 56,105 $ 55,470 $ 50,805 $ 55,470
Nonperforming loans / total loans (GAAP) 0.51 % 0.57 % 0.56 % 0.52 % 0.51 % 0.51 % 0.51 %
Nonperforming loans / total loans excluding PPP loans (non-GAAP) 0.51 % 0.57 % 0.57 % 0.57 % 0.57 % 0.51 % 0.57 %
Allowance for credit losses on loans $ 164,171 $ 170,038 $ 172,354 $ 173,106 $ 176,144 $ 164,171 $ 176,144
ACL / total loans (GAAP) 1.64 % 1.70 % 1.70 % 1.62 % 1.61 % 1.64 % 1.61 %
ACL / total loans excluding PPP loans (non-GAAP) 1.65 % 1.71 % 1.74 % 1.76 % 1.80 % 1.65 % 1.80 %
Average loans (GAAP) $ 9,948,610 $ 10,017,742 $ 10,478,121 $ 10,802,991 $ 11,019,505 $ 10,310,070 $ 10,593,556
Average PPP loans 62,726 126,870 628,462 985,561 1,252,990 448,959 858,385
Average loans excluding PPP loans (non-GAAP) $ 9,885,884 $ 9,890,872 $ 9,849,659 $ 9,817,430 $ 9,766,515 $ 9,861,111 $ 9,735,171
Net charge-offs $ 5,367 $ 1,116 $ 752 $ 3,038 $ 954 $ 10,273 $ 3,852
Annualized net charge-offs / average loans (GAAP) 0.21 % 0.04 % 0.03 % 0.11 % 0.03 % 0.10 % 0.04 %
Annualized net charge-offs / average loans excluding PPP loans (non-GAAP) 0.22 % 0.04 % 0.03 % 0.13 % 0.04 % 0.10 % 0.04 %
Total assets (GAAP) $ 16,810,311 $ 16,155,550 $ 16,022,386 $ 15,622,571 $ 14,929,612 $ 16,810,311 $ 14,929,612
PPP loans 58,391 67,462 246,931 860,864 1,128,703 58,391 1,128,703
Total assets excluding PPP loans (non-GAAP) $ 16,751,920 $ 16,088,088 $ 15,775,455 $ 14,761,707 $ 13,800,909 $ 16,751,920 $ 13,800,909
Nonperforming assets $ 53,345 $ 61,445 $ 61,475 $ 62,076 $ 61,442 $ 53,345 $ 61,442
Nonperforming assets / total assets (GAAP) 0.32 % 0.38 % 0.38 % 0.40 % 0.41 % 0.32 % 0.41 %
Nonperforming assets / total assets excluding PPP loans (non-GAAP) 0.32 % 0.38 % 0.39 % 0.42 % 0.45 % 0.32 % 0.45 %
(1)Primarily consists of employee overtime and employee benefit accruals directly related to the response to the COVID-19 pandemic and federal legislation enacted to address the pandemic, such as the CARES Act, and expenses associated with supplying branches with protective equipment and sanitation supplies (such as floor markings and cautionary signage for branches, face coverings and hand sanitizer) as well as more frequent and rigorous branch cleaning.
(2)Tax effect is calculated based on the respective periods' effective tax rate.

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