EX-99.1 2 rbncq2-21earningsrelease.htm EX-99.1 Document

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Reliant Bancorp, Inc. Reports Record Second Quarter 2021 Results
Reported Net Income of $13.0 million, or Diluted EPS of $0.78


BRENTWOOD, Tenn. — (July 20, 2021) Reliant Bancorp, Inc. (“Reliant Bancorp” or the “Company”) (Nasdaq: RBNC), parent company of Reliant Bank (the “Bank”), reported net income attributable to common shareholders of $13.0 million, or $0.78 per diluted common share, for the second quarter of 2021 compared to net income attributable to common shareholders of $12.1 million, or $0.73 per diluted common share, for the first quarter of 2021, and $7.9 million, or $0.48 per diluted common share, for the second quarter of 2020.

DeVan Ard, Jr., Reliant Bancorp's Chairman and CEO stated, “I am very pleased to continue 2021 with solid second quarter results as evidenced by our record earnings, sound asset quality, and increasing loan production. Loan growth has continued to accelerate with a 1.9% increase from the prior quarter. When PPP loans are excluded, loan growth increases to 3.2%, or 12.8% when annualized.”

Ard continued, “Our team delivered another outstanding quarter of deposit growth. Balances in non-time deposits - checking, savings, and money market deposits - grew 6.3%, or 25.1% annualized, during the second quarter, which can be largely attributed to the effort by our team to build lasting relationships with our customers. We also continued to build shareholder value as our book value and tangible book value per share increased 4.3% and 5.5%, respectively, from the prior quarter, or 17.1% and 22.1%, respectively, when annualized. Additionally, shareholders’ equity to total assets and tangible common equity to tangible assets have increased to 11.18% and 9.28%, respectively, which positions us for further growth opportunities and allows us to continue to deliver exceptional shareholder returns.”

Second Quarter Highlights
Dollar Amounts in Thousands, Except Per Share Amounts
20212020
Second Quarter
First Quarter
Second Quarter
Results of Operations Highlights
Net income attributable to common shareholders$13,045 $12,149 $7,868 
Net income per diluted common share$0.78 $0.73 $0.48 
Net interest margin (NIM) (1)
4.14 %4.51 %4.58 %
Adjusted NIM (2)
4.28 %4.24 %3.81 %
Adjusted pre-tax pre-provision income (2)
$16,387 $15,699 $12,114 
Efficiency ratio (tax equivalent basis)54.1 %56.4 %62.7 %
Bank segment adjusted efficiency ratio (2)
49.1 %50.8 %50.7 %
Balance Sheet Highlights
Loans$2,321,070 $2,277,714 $2,317,324 
Allowance for loan losses(20,894)(20,785)(18,237)
Total assets3,098,464 3,057,066 2,990,126 
Total deposits2,629,840 2,612,910 2,530,014 
Book value per share$20.77 $19.92 $17.77 
Tangible book value per share (2)
$16.88 $16.00 $13.96 
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20212020
Second Quarter
First Quarter
Second Quarter
Return on average: (3)
Assets ("ROAA")1.69 %1.64 %1.07 %
Equity ("ROAE")15.41 %15.07 %10.95 %
Tangible common equity ("ROATCE") (2)
19.07 %18.84 %14.04 %

(1) Net interest margin is the result of annualized net interest income calculated on a tax-equivalent basis divided by average interest-earning assets for the period.
(2) Certain measures are considered non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures.”
(3) Data has been annualized.


Profitability Remains Strong Through Asset Mix Optimization

Net interest margin decreased to 4.14% at June 30, 2021, a decrease of 37 basis points from the previous quarter and a decrease of 44 basis points from the second quarter of 2020. The linked quarter decrease was primarily due to a 30 basis point increase in our cost of funds due to a $2,859 swap termination fee incurred during the quarter. The adjusted net interest margin, which excludes this fee impact as well as the benefits from purchase accounting accretion, showed continued improvement as it increased 4 basis points from the linked quarter to 4.28%. Net income and earnings per share during the quarter were not affected by this termination fee as securities were sold for a gain of $2,966 to offset the transaction.

Loan yields remain strong at 5.58% with a decrease of 5 basis points from the linked quarter. The 40 basis point decrease from the same period in the prior year can largely be attributed to the decrease in purchase accounting accretion. As of June 30, 2021, $13.0 million of purchase accounting accretion and $184 thousand in PPP deferred fees remain to be realized.

While the cost of funds increased to 0.97% during the quarter due to the impact of the swap termination, the cost of interest-bearing retail deposits decreased 40 basis points from the linked quarter and 89 basis points from the same quarter in the prior year driven by a continued focus on improving the funding mix and attracting and retaining core deposits. Deposits increased $16.9 million from the linked quarter and $99.8 million year-over-year with non-time deposits making up $120.7 million and $467.3 million of the increases, respectively. Noninterest-bearing deposits increased $23.8 million from the linked quarter while time deposits decreased $103.7 million.

Ard stated, “Our team continues to attract and retain low cost deposits in a competitive environment, fulfilling one of our strategic goals and helping us to better serve the community's credit needs.”

Continued Loan Growth and Asset Quality Stability

Loans have increased $43.4 million from the linked quarter to $2.3 billion. Loan originations during the quarter totaled $280.2 million at a weighted-average coupon rate of 4.16% with a continued focus on credit quality through sound underwriting. These originations were offset with principal payments, including PPP forgiveness payments of $27.9 million. When PPP loans are excluded, loans increased $71.3 million, or 3.2%, from the linked quarter and $73.0 million, or 3.3%, year-over-year.

Our longstanding focus on credit quality continues to be a source of strength with net recoveries in the first quarter continuing into the second quarter. Nonperforming loans held for investment accounted for 0.23% of total loans held for investment and nonperforming assets accounted for only 0.31% of total assets at June 30, 2021, despite the addition of a retired bank facility to other real estate owned during the quarter. Criticized assets to total loans remains low at 0.87%. The allowance for loan loss was 0.90% of loans (1.46% including unaccreted net purchased loan discounts) at June 30, 2021. There was no provision recognized during the quarter as net charge-offs were in a recovery position for the quarter and year-to-date.

Conclusion

Ard concluded, “I am proud of our team’s ability to serve the community and our shareholders as well as our ability to create meaningful careers and a positive workplace for our employees as evidenced through the Tennessean’s recognition as a 2021 Top Workplace. We continue to see increased demand in the loan pipeline as we move into the third quarter, and we are optimistic about our market and financial positions as we continue to build a bright future for Reliant Bank.”

Contacts
DeVan Ard, Jr., Chairman and CEO, Reliant Bancorp, Inc. (615.221.2087)



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About Reliant Bancorp, Inc. and Reliant Bank

Reliant Bancorp, Inc. is a Brentwood, Tennessee-based financial holding company which, through its wholly owned subsidiary Reliant Bank, operates banking centers in Tennessee. Reliant Bank is a full-service commercial bank that offers a variety of deposit, lending, and mortgage products and services to business and consumer customers. As of June 30, 2021, Reliant Bancorp had approximately $3.1 billion in total consolidated assets, approximately $2.3 billion in loans held for investment and approximately $2.6 billion in deposits. For additional information, locations and hours of operation, please visit www.reliantbank.com.

Financial Measures

This release contains certain financial measures that are not measures recognized under generally accepted accounting principles
(“GAAP”) and, therefore, are considered non-GAAP financial measures. Members of Company management use these non-GAAP financial measures in their analysis of the Company’s performance, financial condition, and efficiency of operations. Management of the Company believes that these non-GAAP financial measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods, and demonstrate the effects of significant gains and charges in the periods presented. Management of the Company also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding underlying operating performance and identifying and analyzing ongoing operating trends. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the non-GAAP financial measures discussed herein are calculated may differ from the manner in which measures with similar names are calculated by other companies. You should understand how other companies calculate their financial measures similar to, or with names similar to, the non-GAAP financial measures we have discussed herein when comparing such non-GAAP financial measures.

The non-GAAP measures in this release include “adjusted net interest margin (NIM),” “adjusted net income,” “adjusted diluted earnings per share (EPS),” “adjusted annualized return on average assets (ROAA),” “adjusted annualized return on average equity (ROAE),” “adjusted annualized return on average tangible common equity (ROATCE),” “adjusted pre-tax pre-provision income,” “tangible common equity to tangible assets (TCE/TA),” “tangible book value per share,” “allowance for loan losses plus unaccreted purchased loan discounts to total loans,” “bank segment adjusted net income,” “bank segment adjusted noninterest expense,” “bank segment adjusted efficiency ratio,” “adjusted cost of funds,” “adjusted cost of interest-bearing liabilities,” and “adjusted cost of deposits.”




Forward-Looking Statements

All statements, other than statements of historical fact, included in this release and any oral statements made regarding the subject of this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are “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, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements relating to increased demand in the loan pipeline and management’s optimism about the Company’s market and financial positions. The words “believe,” “anticipate,” “expect,” “may,” “will,” “assume,” “should,” “predict,” “could,” “would,” “intend,” “targets,” “estimates,” “projects,” “plans,” and “potential,” and other similar words and expressions of the future, are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements about the Company’s future financial and operating results and the Company’s plans, objectives, and intentions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others: (1) the effects of the coronavirus (COVID-19) pandemic, including (i) the magnitude and duration of the pandemic and its impact on general economic and financial market conditions and on our business, results of operations, and financial condition and that of our customers, (ii) actions taken by governments, businesses and individuals in response to the coronavirus (COVID-19) pandemic, (iii) the pace of recovery when the coronavirus (COVID-19) pandemic subsides, and (iv) the speed with which coronavirus (COVID-19) vaccines can be widely distributed, those vaccines’ efficacy against the virus and public acceptance of the vaccines, (2) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated, (3) increased levels of other real estate, primarily as a result of foreclosures, (4) the impact of liquidity needs on our results of operations and financial condition, (5) competition from financial institutions and other financial service providers, (6) the effect of interest rate increases on the cost of deposits, (7) unanticipated weakness in loan demand or loan pricing, (8) greater than anticipated adverse conditions in the national economy or local economies in which we operate, including in Middle Tennessee, (9) lack of strategic growth opportunities or our failure to execute on available opportunities, (10) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses, (11) economic crises and associated credit issues in industries most impacted by the coronavirus (COVID-19) pandemic, including the hotel and retail sectors, (12) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, (13) our ability to effectively manage problem credits, (14) our ability to

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successfully implement efficiency initiatives on time and with the results projected, (15) our ability to successfully develop and market new products and technology, (16) the impact of negative developments in the financial industry and United States and global capital and credit markets, (17) our ability to retain the services of key personnel, (18) our ability to adapt to technological changes, (19) risks associated with litigation, including reputational and financial risks and the applicability of insurance coverage, (20) the vulnerability of the Bank’s computer and information technology systems and networks, and the systems and networks of third parties with whom the Company or the Bank contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss, and other security breaches and interruptions, (21) changes in state and federal laws, rules, regulations, or policies applicable to banks or bank or financial holding companies, including regulatory or legislative developments, (22) adverse impacts (including costs, fines, reputational harm, or other negative effects) from current or future litigation, regulatory examinations, or other legal and/or regulatory actions, (23) the risk of successful integration of the businesses the Company has recently acquired, (24) the ability to meet expectations regarding the timing and completion and accounting and tax treatment of the pending transaction with United Community Banks, Inc. (the “Transaction”), (25) the effect of the announcement and pendency of the Transaction on customer, supplier, or employee relationships and operating results (including without limitation difficulties in maintaining relationships with employees and customers), as well as on the market price of the Company's common stock, (26) the occurrence of any event, change, or other circumstances that could give rise to the termination of the definitive merger agreement for the Transaction, (27) the amount of costs, fees, expenses and charges related to the Transaction, including those arising as a result of unexpected factors or events, (28) the ability to obtain the shareholder and governmental approvals required for the Transaction, (29) reputational risk associated with and the reaction of the parties' customers, suppliers, employees, or other business partners to the Transaction, (30) the failure of any of the conditions to the closing of the Transaction to be satisfied, or any unexpected delay in closing the Transaction, (31) the risk associated with Company management's attention being diverted away from the day-to-day business and operations of the Company to the completion of the Transaction, and (32) general competitive, economic, political, and market conditions, including economic conditions in the local markets where we operate. Additional factors which could affect the forward-looking statements can be found in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website at http://www.sec.gov. The Company believes the forward-looking statements contained herein are reasonable; however, many of such risks, uncertainties, and other factors are beyond the Company’s ability to control or predict and undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, update or revise any forward-looking statement.

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RELIANT BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share amounts)

June 30, 2021March 31, 2021June 30, 2020
ASSETS(Unaudited)(Unaudited)(Unaudited)
Cash and due from banks$11,763 $13,105 $12,805 
Interest-bearing deposits in financial institutions43,676 104,620 81,033 
Federal funds sold656 186 638 
Total cash and cash equivalents56,095 117,911 94,476 
Securities available for sale266,695 267,191 249,014 
Loans2,321,070 2,277,714 2,317,324 
Less: allowance for loan losses(20,894)(20,785)(18,237)
Loans, net2,300,176 2,256,929 2,299,087 
Mortgage loans held for sale, net229,418 166,599 101,579 
Accrued interest receivable14,492 14,568 13,579 
Premises and equipment, net29,183 30,879 33,524 
Operating leases right of use assets12,744 13,372 15,452 
Restricted equity securities, at cost15,770 16,146 17,509 
Other real estate, net2,233 1,198 2,514 
Cash surrender value of life insurance contracts78,979 78,423 67,723 
Deferred tax assets, net5,978 7,453 9,787 
Goodwill54,396 54,396 51,058 
Core deposit intangibles10,434 10,891 12,293 
Other assets21,871 21,110 22,531 
TOTAL ASSETS$3,098,464 $3,057,066 $2,990,126 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Noninterest-bearing demand$602,555 $578,764 $534,353 
Interest-bearing demand441,161 397,047 273,993 
Savings and money market deposit accounts1,003,402 950,630 771,505 
Time582,722 686,469 950,163 
Total deposits2,629,840 2,612,910 2,530,014 
Accrued interest payable1,967 3,087 3,100 
Subordinated debentures70,770 70,719 70,413 
Federal Home Loan Bank advances16,000 — 49,121 
Operating leases liabilities13,932 14,552 16,591 
Other liabilities19,666 24,099 25,344 
TOTAL LIABILITIES2,752,175 2,725,367 2,694,583 
Preferred stock, $1 par value per share; 10,000,000 shares authorized; no shares issued to date— — — 
Common stock, $1 par value per share; 30,000,000 shares authorized; 16,672,511, 16,654,415, and 16,631,604 shares issued and outstanding at June 30, 2021, March 31, 2021, and June 30, 2020, respectively
16,673 16,654 16,632 
Additional paid-in capital234,390 233,667 232,436 
Retained earnings86,917 75,891 45,351 
Accumulated other comprehensive income 8,309 5,487 1,124 
TOTAL SHAREHOLDERS’ EQUITY346,289 331,699 295,543 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$3,098,464 $3,057,066 $2,990,126 

This information is preliminary and based on company data available at the time of presentation.
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RELIANT BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollar amounts in thousands, except per share amounts)
Three Months Ended

June 30,
2021
March 31,
2021
June 30,
2020
INTEREST INCOME
Interest and fees on loans$31,183 $30,989 $33,447 
Interest and fees on loans held for sale1,807 1,331 815 
Interest on investment securities, taxable663 610 128 
Interest on investment securities, nontaxable1,216 1,225 1,317 
Restricted equity securities and other226 227 208 
TOTAL INTEREST INCOME35,095 34,382 35,915 
INTEREST EXPENSE
Deposits
Demand216 272 218 
Savings and money market deposit accounts647 839 1,476 
Time4,678 2,288 3,135 
Federal Home Loan Bank advances and other borrowings13 4 148 
Subordinated debentures980 953 982 
TOTAL INTEREST EXPENSE6,534 4,356 5,959 
NET INTEREST INCOME28,561 30,026 29,956 
PROVISION FOR LOAN LOSSES— — 3,000 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES28,561 30,026 26,956 
NONINTEREST INCOME
Service charges on deposit accounts1,656 1,561 1,381 
Gains on mortgage loans sold, net2,978 4,928 2,248 
Gain (loss) on securities transactions, net2,966 129 327 
Other noninterest income710 719 466 
TOTAL NONINTEREST INCOME8,310 7,337 4,422 
NONINTEREST EXPENSE
Salaries and employee benefits12,793 13,352 12,464 
Occupancy1,999 2,008 2,026 
Data processing and software2,262 2,229 2,026 
Professional fees358 1,243 680 
Regulatory fees343 361 537 
Merger expenses— — 2,632 
Other operating expense2,729 2,471 1,899 
TOTAL NONINTEREST EXPENSE20,484 21,664 22,264 
INCOME BEFORE PROVISION FOR INCOME TAXES16,387 15,699 9,114 
INCOME TAX EXPENSE3,202 2,980 1,634 
CONSOLIDATED NET INCOME13,185 12,719 7,480 
NONCONTROLLING INTEREST IN NET (INCOME) LOSS OF SUBSIDIARY(140)(570)388 
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS$13,045 $12,149 $7,868 
Basic net income attributable to common shareholders, per share$0.79 $0.73 $0.48 
Diluted net income attributable to common shareholders, per share$0.78 $0.73 $0.48 

This information is preliminary and based on company data available at the time of presentation.
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RELIANT BANCORP, INC.
SEGMENT FINANCIAL INFORMATION - UNAUDITED
(Dollar Amounts in Thousands)
Three Months Ended
June 30, 2021
Commercial BankingResidential
Mortgage
Banking		Elimination
Entries		Consolidated
Net interest income$27,440 $1,121 $— $28,561 
Provision for loan losses— — — — 
Noninterest income5,335 3,251 (276)8,310 
Noninterest expense (excluding merger expense)16,570 3,914 — 20,484 
Merger expense— — — — 
Income tax expense3,160 42 — 3,202 
Net income13,045 416 (276)13,185 
Noncontrolling interest in net income of subsidiary— (416)276 (140)
Net income attributable to common shareholders$13,045 $— $— $13,045 

Three Months Ended
March 31, 2021
Commercial BankingResidential Mortgage BankingElimination EntriesConsolidated
Net interest income$29,133 $893 $— $30,026 
Provision for loan losses— — — — 
Noninterest income2,409 5,033 (105)7,337 
Noninterest expense (excluding merger expense)16,460 5,204 — 21,664 
Merger expense— — — — 
Income tax expense2,933 47 — 2,980 
Net income12,149 675 (105)12,719 
Noncontrolling interest in net income of subsidiary— (675)105 (570)
Net income attributable to common shareholders$12,149 $— $— $12,149 


Three Months Ended
June 30, 2020
Commercial BankingResidential Mortgage BankingElimination EntriesConsolidated
Net interest income$29,420 $536 $— $29,956 
Provision for loan losses3,000 — — 3,000 
Noninterest income2,174 2,240 8 4,422 
Noninterest expense (excluding merger expense)16,433 3,199 — 19,632 
Merger expense2,632 — — 2,632 
Income tax (benefit) expense1,661 (27)— 1,634 
Net (loss) income7,868 (396)8 7,480 
Noncontrolling interest in net loss of subsidiary— 396 (8)388 
Net income attributable to common shareholders$7,868 $— $— $7,868 
This information is preliminary and based on company data available at the time of presentation.
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RELIANT BANCORP, INC.
SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED
(Dollar amounts in thousands, except per share amounts)
Three months ended,
June 30, 2021March 31, 2021June 30, 2020
Per Common Share
Basic net income$0.79 $0.73 $0.48 
Diluted net income$0.78 $0.73 $0.48 
Adjusted diluted income(1)
$0.78 $0.73 $0.60 
Book value$20.77 $19.92 $17.77 
Tangible book value(1)
$16.88 $16.00 $13.96 
Shares Outstanding
Basic weighted average common shares16,616,888 16,615,169 16,496,817 
Diluted weighted average common shares16,784,744 16,740,303 16,529,080 
Common shares outstanding at period end16,672,511 16,654,415 16,631,604 
Selected Balance Sheet Data
Loans, net of unearned income$2,321,070 $2,277,714 $2,317,324 
Total assets3,098,464 3,057,066 2,990,126 
Customer deposits2,320,054 2,350,168 2,177,734 
Wholesale and institutional deposits309,786 262,742 352,280 
Total deposits2,629,840 2,612,910 2,530,014 
Total liabilities2,752,175 2,725,367 2,694,583 
Total shareholders' equity346,289 331,699 295,543 
Selected Balance Sheet Data - Quarterly Averages
Loans held for investment$2,288,841 $2,280,379 $2,302,639 
Total assets3,088,329 3,013,114 2,956,942 
Interest-bearing liabilities2,113,993 2,079,238 2,158,990 
Total liabilities 2,748,825 2,686,085 2,667,981 
Total shareholders' equity339,504 327,029 288,961 
Selected Performance Ratios
Return on average assets (2)
1.69 %1.64 %1.07 %
Return on shareholders' equity (2)
15.41 %15.07 %10.95 %
Return on average tangible common equity(1) (2)
19.07 %18.84 %14.04 %
Average shareholders' equity to average assets
10.99 %10.85 %9.77 %
Net interest margin (tax-equivalent basis) (2)
4.14 %4.51 %4.58 %
Efficiency Ratio (tax-equivalent basis)54.1 %56.4 %62.7 %
Bank Segment efficiency ratio (1)
49.1 %50.8 %50.7 %
Loans held for investment to deposits ratio88.3 %87.2 %91.6 %
Interest Rates and Yields (2)
Yield on interest-earning assets5.05 %5.14 %5.45 %
Yield on loans held for investment5.58 %5.63 %5.98 %
Cost of interest-bearing liabilities1.24 %0.85 %1.11 %
Adjust cost of interest-bearing liabilities (1)
0.70 %0.85 %1.11 %
Cost of funds0.97 %0.67 %0.91 %
Adjusted cost of funds (1)
0.54 %0.67 %0.91 %
Cost of total deposits0.83 %0.51 %0.79 %
Adjusted cost of total deposits (1)
0.41 %0.51 %0.79 %
This information is preliminary and based on company data available at the time of presentation.
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(Dollar amounts in thousands, except per share amounts)
Three months ended,
June 30, 2021March 31, 2021June 30, 2020
Preliminary Consolidated Capital Ratios (3)
Tier 1 leverage9.47 %9.33 %8.47 %
Common equity tier 110.18 %10.41 %9.25 %
Tier 1 risk-based capital10.62 %10.88 %9.71 %
Total risk-based capital13.62 %14.09 %12.80 %
Selected Asset Quality Measures
Allowance for loan losses to total loans0.90 %0.91 %0.79 %
Allowance for loan losses and purchase loan discounts to total loans1.46 %1.56 %1.73 %
Net (recoveries) charge offs$(109)$(149)$(116)
Net (recoveries) charge offs to average loans (2)
(0.02)%(0.03)%(0.02)%
Total nonperforming loans held for investment (HFI)$5,355 $6,110 $7,549 
Total nonperforming assets (4)
$9,726 $9,661 $11,571 
Nonperforming loans HFI to total loans HFI0.23 %0.27 %0.33 %
Nonperforming assets to total assets0.31 %0.32 %0.39 %
Nonperforming assets to total loans HFI and NPAs0.42 %0.42 %0.50 %
(1) Certain measures are considered non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures”.
(2) Data has been annualized.
(3) Current quarter capital ratios are estimated
(4) Nonperforming assets consist of nonperforming loans held for investment, nonperforming loans held for sale, repossessed assets, and other real estate.


This information is preliminary and based on company data available at the time of presentation.
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RELIANT BANCORP, INC.
YIELD TABLES - UNAUDITED
FOR THE PERIODS INDICATED
(Dollar Amounts in Thousands)

The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest-earning assets and interest-bearing liabilities and the average interest rate for interest-earning assets and inter    est-bearing liabilities, net interest spread and net interest margin for the periods indicated below:
Three Months Ended
 June 30, 2021
Three Months Ended
March 31, 2021
Three Months Ended
 June 30, 2020
Average Balances (1)
Rates / Yields (%)Interest Income / Expense
Average Balances (1)
Rates / Yields (%)Interest Income / Expense
Average Balances (1)
Rates / Yields (%)Interest Income / Expense
Interest earning assets
Loans (2) (3)$2,288,841 5.12 $28,539 $2,280,379 5.15 $28,288 $2,302,639 5.68 $31,708 
Loan fees— 0.46 2,644 — 0.48 2,701 — 0.30 1,739 
Loans with fees2,288,8415.58 31,1832,280,3795.63 30,9892,302,6395.98 33,447
Mortgage loans held for sale232,8503.11 1,807169,7473.18 1,33185,3133.84 815
Deposits with banks58,6190.36 5261,9390.34 5266,0520.30 50
Investment securities - taxable73,3683.62 66365,4993.78 61066,2340.78 128
Investment securities - tax-exempt (4)
197,3093.19 1,216198,0343.24 1,225193,2163.51 1,317
Restricted equity securities and other17,8163.92 17417,3214.10 17521,9502.90 158
Total earning assets2,868,8035.05 35,0952,792,9195.14 34,3822,735,4045.45 35,915
Nonearning assets219,526220,195221,538
Total assets$3,088,329 $3,013,114 $2,956,942 
Interest bearing liabilities
Interest bearing demand$412,117 0.21 $216 $377,714 0.29 $272 $279,092 0.31 $218 
Savings and money market972,0820.27 647901,4440.38 839731,2780.81 1,476
Time deposits - retail443,5120.94 1,042494,5081.15 1,404749,5661.19 2,217
Time deposits - wholesale192,9547.56 3,636227,5131.58 884201,3071.83 918
Total interest-bearing deposits2,020,6651.10 5,5412,001,1790.69 3,3991,961,2430.99 4,829
Federal Home Loan Bank advances and other borrowings22,5820.23 137,4670.22 4127,3500.47 148
Subordinated debt70,7465.56 980 70,5925.48 953 70,3975.61 982 
Total borrowed funds93,328 4.27 993 78,059 4.97 957 197,747 2.30 1,130 
Total interest-bearing liabilities2,113,993 1.24 6,534 2,079,238 0.85 4,356 2,158,990 1.11 5,959 
Net interest spread (5)
3.81 28,5614.29 30,0264.34 29,956
Noninterest bearing deposits597,188 (0.27)565,770 (0.18)468,575(0.20)
Other noninterest bearing liabilities37,644 41,077 40,416
Shareholders' equity339,504327,029 288,961
Total liabilities and shareholders' equity$3,088,329 $3,013,114 $2,956,942 
Cost of funds0.970.670.91
Net interest margin (6)
4.144.51 4.58
(1)    Calculated using daily averages.
(2)    Average loan balances include nonaccrual loans.
(3)    Yields on loans reflects tax-exempt interest and state tax credits received on low or zero percent interest loans made to construct low income housing of $667, $661, and $790, for the three months ended June 30, 2021, March 31, 2021, and June 30, 2020, respectively.
(4)     Yields on tax-exempt securities are shown on a tax-equivalent basis.
(5)    Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities.
(6)    Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period.
This information is preliminary and based on company data available at the time of presentation.
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Reliant Bancorp, Inc. Reports Second Quarter 2021 Results
Page 11

RELIANT BANCORP, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES-UNAUDITED
(Dollar Amounts in Thousands, Except Per Share Amounts)
Three Months Ended
June 30, 2021March 31, 2021June 30, 2020
Adjusted net interest margin (1):
Net interest income$28,561 $30,026 $29,956 
Add: tax equivalent interest income1,021 1,019 1,161 
Add: swap termination fees2,859 — — 
Less: purchase accounting adjustments(1,839)(1,844)(5,232)
Adjusted net interest income30,602 29,201 25,885 
Average Earning Assets$2,868,803 $2,792,919 $2,735,404 
Net interest margin-tax equivalent4.14 %4.51 %4.58 %
Adjusted net interest margin4.28 %4.24 %3.81 %
Adjusted net income (2):
Net income (loss) attributable to common shareholders$13,045 $12,149 $7,868 
Add: merger related expenses— — 2,632 
Less: income tax impact of merger related expenses— — (565)
Adjusted net income$13,045 $12,149 $9,935 
Adjusted diluted earnings per share:
Adjusted net income$13,045 $12,149 $9,935 
Weighted average shares - diluted16,784,74416,740,30316,529,080
Diluted earnings (loss) per share $0.78 $0.73 $0.48 
Adjusted diluted earnings per share$0.78 $0.73 $0.60 
Adjusted annualized return on average assets:
Adjusted net income$13,045 $12,149 $9,935 
Average assets3,088,329 3,013,114 2,956,942 
Annualized return on average assets 1.69 %1.64 %1.07 %
Adjusted annualized return on average assets1.69 %1.64 %1.35 %
Adjusted annualized return on average equity:
Adjusted net income$13,045 $12,149 $9,935 
Average total shareholders' equity339,504 327,029 288,961 
Annualized return on average equity15.41 %15.07 %10.95 %
Adjusted annualized return on average equity15.41 %15.07 %13.83 %
Adjusted annualized return on average tangible common equity:
Average total shareholders' equity$339,504 $327,029 $288,961 
Less: average intangible assets(65,088)(65,531)(63,594)
Average tangible common equity$274,416 $261,498 $225,367 
Adjusted net income13,045 12,149 9,935 
Annualized return on average tangible common equity 19.07 %18.84 %14.04 %
Adjusted annualized return on average tangible common equity19.07 %18.84 %17.73 %
This information is preliminary and based on company data available at the time of presentation.
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Reliant Bancorp, Inc. Reports Second Quarter 2021 Results
Page 12
Three Months Ended
June 30, 2021March 31, 2021June 30, 2020
Adjusted pre-tax pre-provision income:
Income (loss) before provision for income taxes$16,387 $15,699 $9,114 
Add: merger related expenses— — 2,632 
Add: provision for loan losses— — 3,000 
Adjusted pre-tax pre-provision income$16,387 $15,699 $14,746 
Tangible common equity to tangible assets:
Tangible common equity:
Total shareholders' equity$346,289 $331,699 $295,543 
Less: intangible assets(64,830)(65,287)(63,351)
Tangible common equity$281,459 $266,412 $232,192 
Tangible assets:
Total assets$3,098,464 $3,057,066 $2,990,126 
Less: intangible assets(64,830)(65,287)(63,351)
Tangible assets$3,033,634 $2,991,779 $2,926,775 
Total shareholders' equity to total assets11.18 %10.85 %9.88 %
Tangible common equity to tangible assets9.28 %8.90 %7.93 %
Tangible book value per share:
Tangible common equity$281,459 $266,412 $232,192 
Total shares of common stock outstanding16,672,511 16,654,415 16,631,604 
Book value per common share$20.77 $19.92 $17.77 
Tangible book value per share $16.88 $16.00 $13.96 
Allowance for loan losses plus unaccreted loan purchase discounts:
Allowance for loan losses$20,894 $20,785 $18,237 
Unaccreted loan purchase discounts12,980 14,833 21,939 
Allowance for loan losses plus unaccreted loan purchase discounts:$33,874 $35,618 $40,176 
Total loans2,321,070 2,277,714 2,317,324 
Allowance for loan losses plus unaccreted purchased loan discounts to total loans1.46 %1.56 %1.73 %
Allowance for loan losses to total loans0.90 %0.91 %0.79 %
Bank segment adjusted net income:
Bank segment net income (loss)$13,045 $12,149 $7,868 
Add: merger related expenses— — 2,632 
Less: income tax impact of merger related expenses— — (565)
Bank segment adjusted net income$13,045 $12,149 $9,935 
Bank segment adjusted noninterest expense:
Bank segment noninterest expense$16,570 $16,460 $19,065 
Add: merger related expenses— — (2,632)
Bank segment adjusted noninterest expense$16,570 $16,460 $16,433 
This information is preliminary and based on company data available at the time of presentation.
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Reliant Bancorp, Inc. Reports Second Quarter 2021 Results
Page 13
Three Months Ended
June 30, 2021March 31, 2021June 30, 2020
Bank segment adjusted efficiency ratio:
Bank segment adjusted total revenues:
Bank segment net interest income$27,440 $29,133 $29,420 
Add: Tax equivalent interest income1,021 1,019 1,161 
Add: Bank segment noninterest income5,335 2,409 2,174 
Less: Gains on sale of securities, OREO, premises and equipment (3)
(2,922)(146)(338)
Add: Swap termination fee (3)
2,859 — — 
Bank segment adjusted total revenues$33,733 $32,415 $32,417 
Bank segment efficiency ratio50.6 %52.2 %60.3 %
Bank segment adjusted efficiency ratio49.1 %50.8 %50.7 %
Adjusted cost of funds:
Adjusted interest expense:
Interest Expense$6,534 $4,356 $5,959 
Less: Swap termination fees(2,859)— — 
Adjusted interest expense$3,675 $4,356 $5,959 
Average funds2,711,181 2,645,008 2,627,565 
Cost of funds0.97 %0.67 %0.91 %
Adjusted cost of funds0.54 %0.67 %0.91 %
Adjusted cost of interest-bearing liabilities:
Adjusted interest expense$3,675 $4,356 $5,959 
Average interest-bearing liabilities2,113,993 2,079,238 2,158,990 
Cost of interest-bearing liabilities1.24 %0.85 %1.11 %
Adjusted cost of interest-bearing liabilities0.70 %0.85 %1.11 %
Adjusted cost of deposits:
Adjusted deposit expense:
Deposit expense$5,541 $3,399 $4,829 
Less: Swap termination fees(2,859)— — 
Adjusted deposit expense$2,682 $3,399 $4,829 
Average deposits2,617,853 2,566,949 2,429,818 
Cost of deposits0.83 %0.51 %0.79 %
Adjusted cost of deposits0.41 %0.51 %0.79 %

(1) Prior calculation of this measure removed tax credits related to certain tax-preference-qualified loans and tax-exempt securities. The Company views these credits as normal course of business and as such removal is unnecessary.
(2) The swap termination fees included in the adjusted net interest income calculation in the second quarter of 2021 were done so in conjunction with securities sales thereby nullifying the effects on net income. Therefore, we have not adjusted for these transactions as adjusted net income.
(3) Securities sold in the second quarter of 2021 were done in conjunction with the swap termination fees. Therefore, we have adjusted for both sides of this transaction.
This information is preliminary and based on company data available at the time of presentation.
-END-