EX-99.1 2 rbncq3-21earningsrelease.htm EX-99.1 Document

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Reliant Bancorp, Inc. Reports Record Third Quarter 2021 Results
Reported Net Income of $13.3 million, or Diluted EPS of $0.79
Loan Growth Continues With 11.8% Annualized Increase


BRENTWOOD, Tenn. — (October 19, 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 $13.3 million, or $0.79 per diluted common share, for the third quarter of 2021 compared to net income attributable to common shareholders of $13.0 million, or $0.78 per diluted common share, for the second quarter of 2021, and $11.5 million, or $0.69 per diluted common share, for the third quarter of 2020. When merger expenses are excluded, income per diluted common share increased to $0.87 during the third quarter of 2021 compared to $0.78 and $0.70 the second quarter of 2021 and the third quarter of 2020, respectively.

DeVan Ard, Jr., Reliant Bancorp's Chairman and CEO stated, “I am very pleased to continue 2021 with solid third quarter results as evidenced by our strong net interest margin, sound asset quality, and impressive loan production. Loan growth has continued to accelerate with a 3.0% increase from the prior quarter. When PPP loans are excluded, loan growth increased to 3.6%, or 14.2% when annualized.”

Ard continued, “Our team continues to focus on reducing high cost wholesale deposits, as customer deposits increased to make up 89.9% of our deposit portfolio and the cost of deposits decreased to 0.58%, or 0.26% when adjusted for swap termination fees. We also continued to build shareholder value as our book value and tangible book value per share increased 2.8% and 3.7%, respectively, from the prior quarter, or 11.3% and 14.6%, respectively, when annualized. Additionally, shareholders’ equity to total assets and tangible common equity to tangible assets increased to 11.82% and 9.90%, respectively, which allows us to continue to deliver exceptional returns to our shareholders.”

Third Quarter Highlights
Dollar Amounts in Thousands, Except Per Share Amounts
20212020
Third Quarter
Second Quarter
Third Quarter
Results of Operations Highlights
Net income attributable to common shareholders$13,289 $13,045 $11,533 
Net income per diluted common share$0.79 $0.78 $0.69 
Net interest margin (NIM) (1)
4.22 %4.14 %4.54 %
Adjusted NIM (2)
4.40 %4.28 %3.99 %
Pre-tax pre-provision income (2)
$17,487 $16,387 $16,207 
Efficiency ratio (tax equivalent basis)54.8 %54.1 %54.0 %
Bank segment adjusted efficiency ratio (2)
46.4 %49.1 %48.6 %
Balance Sheet Highlights
Loans$2,389,833 $2,321,070 $2,357,898 
Allowance for loan losses(20,897)(20,894)(19,834)
Total assets3,013,559 3,098,464 3,044,512 
Total deposits2,547,705 2,629,840 2,565,502 
Book value per share$21.36 $20.77 $18.46 
Tangible book value per share (2)
$17.50 $16.88 $14.65 
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20212020
Third Quarter
Second Quarter
Third Quarter
Return on average: (3)
Assets ("ROAA")1.74 %1.69 %1.53 %
Equity ("ROAE")15.01 %15.41 %15.32 %
Tangible common equity ("ROATCE") (2)
18.40 %19.07 %19.42 %

(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 - Unaudited.”
(3) Data has been annualized.


Net Interest Margin Improves Through Asset Mix Optimization

Net interest margin increased to 4.22% at September 30, 2021, an increase of 8 basis points from the previous quarter and a decrease of 32 basis points from the third quarter of 2020. The linked quarter increase was primarily due to a 23 basis point decrease in our cost of funds due to a decrease in interest-bearing deposits, especially higher cost wholesale time deposits, as well as a $2,290 swap termination fee incurred during the quarter compared to the $2,859 swap termination fee incurred during the previous quarter. The adjusted net interest margin, which excludes this swap termination fee impact as well as the benefits from purchase accounting accretion, showed continued improvement as it increased 12 basis points from the linked quarter to 4.40%. Net income and earnings per share during the quarter were not affected by this termination fee as securities were sold for a gain of $2,419 to offset the transaction.

Loan yields remain strong at 4.96% when excluding fees, representing a decrease of 16 basis points from the linked quarter and a 38 basis point decrease from the same period in the prior year, which can both largely be attributed to the decrease in purchase accounting accretion. As of September 30, 2021, $12.0 million of purchase accounting accretion remains unaccreted.

The cost of deposits continued to improve to 0.58% with a decrease of 25 basis points from the previous quarter and 4 basis points from the third quarter of 2020. When removing the impact of the second and third quarter swap termination fees the cost of deposits improves even further to 0.26%, or a decrease of 15 basis points from the previous quarter and 36 basis points from the third quarter of 2020. This decrease is largely the result of a decrease in average wholesale time deposits of $74.4 million and $104.6 million from the linked quarter and year-over-year, respectively. These decreases were offset by an increase in average noninterest-bearing deposits of $19.7 million and $80.6 million from the linked quarter and year-over-year, respectively.

Continued Loan Growth and Asset Quality Stability

Loans increased $68.8 million from the linked quarter to $2.4 billion. Loan originations during the quarter totaled $272.0 million at a weighted-average coupon rate of 4.15% with a continued focus on credit quality through sound underwriting. These originations were offset with principal payments, including PPP forgiveness payments of $13.7 million. When PPP loans are excluded, loans increased $82.5 million, or 3.6%, from the linked quarter and $114.9 million, or 5.1%, year-over-year.

Our longstanding focus on credit quality continued to be a source of strength with net recoveries continuing into the third quarter. Nonperforming loans held for investment accounted for 0.22% of total loans held for investment and nonperforming assets accounted for only 0.34% of total assets at September 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 0.60%. The allowance for loan loss was 0.87% of loans (1.38% including unaccreted net purchased loan discounts) at September 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 Newsweek’s recognition of the Bank as the Best Small Bank in Tennessee for the second year in a row. We continue to see increased demand in the loan pipeline as we move into the fourth 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 September 30, 2021, Reliant Bancorp had approximately $3.0 billion in total consolidated assets, approximately $2.4 billion in loans held for investment and approximately $2.5 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 financial 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 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 continued delivery of exceptional shareholder returns, 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) unanticipated 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 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”), (24) 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, (25) the occurrence of any event, change, or other circumstances that could give rise to the termination of the definitive merger agreement for the Transaction, (26) the amount of costs, fees, expenses and charges related to the Transaction, including those arising as a result of unexpected factors or events, (27) the ability to obtain the shareholder and governmental approvals required for the Transaction, (28) reputational risk associated with and the reaction of the parties' customers, suppliers, employees, or other business partners to the Transaction, (29) the failure of any of the conditions to the closing of the Transaction to be satisfied, or any unexpected delay in closing the Transaction, (30) 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 (31) 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 - Unaudited
(Dollar amounts in thousands, except per share amounts)

September 30, 2021June 30, 2021September 30, 2020
ASSETS
Cash and due from banks$13,270 $11,763 $14,050 
Interest-bearing deposits in financial institutions66,155 43,676 61,349 
Federal funds sold1,002 656 12,273 
Total cash and cash equivalents80,427 56,095 87,672 
Securities available for sale254,416 266,695 273,893 
Loans2,389,833 2,321,070 2,357,898 
Less: allowance for loan losses(20,897)(20,894)(19,834)
Loans, net2,368,936 2,300,176 2,338,064 
Mortgage loans held for sale, net62,543 229,418 99,587 
Accrued interest receivable14,374 14,492 14,615 
Premises and equipment, net27,519 29,183 33,319 
Operating leases right of use assets12,427 12,744 14,619 
Restricted equity securities, at cost15,770 15,770 17,367 
Other real estate, net3,088 2,233 1,326 
Cash surrender value of life insurance contracts78,460 78,979 68,109 
Deferred tax assets, net5,788 5,978 8,523 
Goodwill54,396 54,396 51,506 
Core deposit intangibles9,978 10,434 11,820 
Other assets25,437 21,871 24,092 
TOTAL ASSETS$3,013,559 $3,098,464 $3,044,512 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Noninterest-bearing demand$626,598 $602,555 $538,844 
Interest-bearing demand410,923 441,161 272,805 
Savings and money market deposit accounts989,677 1,003,402 813,001 
Time520,507 582,722 940,852 
Total deposits2,547,705 2,629,840 2,565,502 
Accrued interest payable2,302 1,967 3,744 
Federal funds purchased— — 5,000 
Subordinated debentures70,821 70,770 70,389 
Federal Home Loan Bank advances— 16,000 40,555 
Operating leases liabilities13,605 13,932 15,756 
Other liabilities22,811 19,666 36,480 
TOTAL LIABILITIES2,657,244 2,752,175 2,737,426 
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; 16,682,928, 16,672,511, and 16,634,572 shares issued and outstanding at September 30, 2021, June 30, 2021, and September 30, 2020, respectively
16,683 16,673 16,635 
Additional paid-in capital234,696 234,390 232,738 
Retained earnings98,182 86,917 55,206 
Accumulated other comprehensive income 6,754 8,309 2,507 
TOTAL SHAREHOLDERS’ EQUITY356,315 346,289 307,086 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$3,013,559 $3,098,464 $3,044,512 

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

September 30,
2021
June 30,
2021
September 30,
2020
INTEREST INCOME
Interest and fees on loans$30,817 $31,183 $32,895 
Interest and fees on loans held for sale1,184 1,807 1,037 
Interest on investment securities, taxable786 663 399 
Interest on investment securities, nontaxable928 1,216 1,186 
Restricted equity securities and other215 226 251 
TOTAL INTEREST INCOME33,930 35,095 35,768 
INTEREST EXPENSE
Deposits
Demand153 216 236 
Savings and money market deposit accounts441 647 1,162 
Time3,348 4,678 2,735 
Federal Home Loan Bank advances and other borrowings9 13 104 
Subordinated debentures980 980 992 
TOTAL INTEREST EXPENSE4,931 6,534 5,229 
NET INTEREST INCOME28,999 28,561 30,539 
PROVISION FOR LOAN LOSSES— — 1,500 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES28,999 28,561 29,039 
NONINTEREST INCOME
Service charges on deposit accounts1,678 1,656 1,583 
Gains on mortgage loans sold, net4,218 2,978 3,784 
Gain on securities transactions, net2,419 2,966 — 
Income from bank owned life insurance2,181 556 386 
Other noninterest income373 154 249 
TOTAL NONINTEREST INCOME10,869 8,310 6,002 
NONINTEREST EXPENSE
Salaries and employee benefits12,426 12,793 12,184 
Occupancy2,038 1,999 2,054 
Data processing and software2,265 2,262 2,240 
Professional fees526 358 775 
Regulatory fees328 343 365 
Merger expenses1,453 — 77 
Other operating expense3,345 2,729 2,639 
TOTAL NONINTEREST EXPENSE22,381 20,484 20,334 
INCOME BEFORE PROVISION FOR INCOME TAXES17,487 16,387 14,707 
INCOME TAX EXPENSE3,551 3,202 2,800 
CONSOLIDATED NET INCOME13,936 13,185 11,907 
NONCONTROLLING INTEREST IN NET (INCOME) LOSS OF SUBSIDIARY(647)(140)(374)
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS$13,289 $13,045 $11,533 
Basic net income attributable to common shareholders, per share$0.80 $0.79 $0.70 
Diluted net income attributable to common shareholders, per share$0.79 $0.78 $0.69 

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
September 30, 2021
Commercial BankingResidential
Mortgage
Banking		Elimination
Entries		Consolidated
Net interest income$28,164 $835 $— $28,999 
Provision for loan losses— — — — 
Noninterest income6,651 4,177 41 10,869 
Noninterest expense (excluding merger expense)16,551 4,377 — 20,928 
Merger expense1,453 — — 1,453 
Income tax expense3,522 29 — 3,551 
Net income13,289 606 41 13,936 
Noncontrolling interest in net income of subsidiary— (606)(41)(647)
Net income attributable to common shareholders$13,289 $— $— $13,289 

Three Months Ended
June 30, 2021
Commercial BankingResidential Mortgage BankingElimination EntriesConsolidated
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
September 30, 2020
Commercial BankingResidential Mortgage BankingElimination EntriesConsolidated
Net interest income$29,731 $808 $— $30,539 
Provision for loan losses1,500 — — 1,500 
Noninterest income2,219 3,797 (14)6,002 
Noninterest expense (excluding merger expense)16,067 4,190 — 20,257 
Merger expense77 — — 77 
Income tax expense2,773 27 — 2,800 
Net (loss) income11,533 388 (14)11,907 
Noncontrolling interest in net loss of subsidiary— (388)14 (374)
Net income attributable to common shareholders$11,533 $— $— $11,533 
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,
September 30, 2021June 30, 2021September 30, 2020
Per Common Share
Basic net income$0.80 $0.79 $0.70 
Diluted net income$0.79 $0.78 $0.69 
Adjusted diluted income(1)
$0.87 $0.78 $0.70 
Book value$21.36 $20.77 $18.46 
Tangible book value(1)
$17.50 $16.88 $14.65 
Shares Outstanding
Basic weighted average common shares16,665,155 16,616,888 16,587,274 
Diluted weighted average common shares16,805,157 16,784,744 16,649,673 
Common shares outstanding at period end16,682,928 16,672,511 16,634,572 
Selected Balance Sheet Data
Loans, net of unearned income$2,389,833 $2,321,070 $2,357,898 
Total assets3,013,559 3,098,464 3,044,512 
Customer deposits2,289,737 2,320,054 2,185,915 
Wholesale and institutional deposits257,968 309,786 379,587 
Total deposits2,547,705 2,629,840 2,565,502 
Total liabilities2,657,244 2,752,175 2,737,426 
Total shareholders' equity356,315 346,289 307,086 
Selected Balance Sheet Data - Quarterly Averages
Loans held for investment$2,360,073 $2,288,841 $2,337,958 
Total assets3,036,777 3,088,329 2,991,818 
Interest-bearing liabilities2,032,296 2,113,993 2,108,428 
Total liabilities 2,685,605 2,748,825 2,692,383 
Total shareholders' equity351,172 339,504 299,435 
Selected Performance Ratios
Return on average assets (2)
1.74 %1.69 %1.53 %
Return on shareholders' equity (2)
15.01 %15.41 %15.32 %
Return on average tangible common equity(1) (2)
18.40 %19.07 %19.42 %
Average shareholders' equity to average assets
11.56 %10.99 %10.01 %
Net interest margin (tax-equivalent basis) (2)
4.22 %4.14 %4.54 %
Efficiency Ratio (tax-equivalent basis)54.8 %54.1 %54.0 %
Bank Segment efficiency ratio (1)
46.4 %49.1 %48.6 %
Loans held for investment to deposits ratio93.8 %88.3 %91.9 %
Interest Rates and Yields (2)
Yield on interest-earning assets4.91 %5.05 %5.29 %
Yield on loans held for investment5.29 %5.58 %5.73 %
Cost of interest-bearing liabilities0.96 %1.24 %0.99 %
Adjusted cost of interest-bearing liabilities (1)
0.52 %0.70 %0.99 %
Cost of funds0.74 %0.97 %0.79 %
Adjusted cost of funds (1)
0.40 %0.54 %0.79 %
Cost of total deposits0.58 %0.83 %0.62 %
Adjusted cost of total deposits (1)
0.26 %0.41 %0.62 %
This information is preliminary and based on company data available at the time of presentation.
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(Dollar amounts in thousands, except per share amounts)
Three months ended,
September 30, 2021June 30, 2021September 30, 2020
Preliminary Consolidated Capital Ratios (3)
Tier 1 leverage10.04 %9.47 %8.72 %
Common equity tier 110.52 %10.18 %9.77 %
Tier 1 risk-based capital10.95 %10.62 %10.25 %
Total risk-based capital13.92 %13.62 %13.44 %
Selected Asset Quality Measures
Allowance for loan losses to total loans0.87 %0.90 %0.84 %
Allowance for loan losses plus unaccreted purchased loan discounts to total loans (1)
1.38 %1.46 %1.64 %
Net (recoveries) charge offs$(3)$(109)$(97)
Net (recoveries) charge offs to average loans (2)
— %(0.02)%(0.02)%
Total nonperforming loans held for investment (HFI)$5,302 $5,355 $6,802 
Total nonperforming assets (4)
$10,232 $9,726 $9,731 
Nonperforming loans HFI to total loans HFI0.22 %0.23 %0.29 %
Nonperforming assets to total assets0.34 %0.31 %0.32 %
Nonperforming assets to total loans HFI and NPAs0.43 %0.42 %0.41 %
(1) Certain measures are considered non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures - unaudited”.
(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
 September 30, 2021
Three Months Ended
June 30, 2021
Three Months Ended
 September 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)$2,360,073 4.96 $28,847 $2,288,841 5.12 $28,539 $2,337,958 5.34 $30,640 
Loan fees— 0.33 1,970 — 0.46 2,644 — 0.38 2,255 
Loans with fees2,360,0735.29 30,8172,288,8415.58 31,1832,337,9585.73 32,895
Mortgage loans held for sale134,2453.50 1,184232,8503.11 1,807103,7293.98 1,037
Deposits with banks45,8850.39 4558,6190.36 5257,9090.47 68
Investment securities - taxable106,4332.93 78673,3683.62 66367,5692.35 399
Investment securities - tax-exempt (4)
154,4173.10 928197,3093.19 1,216185,0583.30 1,186
Restricted equity securities and other17,1113.94 17017,8163.92 17419,6943.70 183
Total earning assets2,818,1644.91 33,9302,868,8035.05 35,0952,771,9175.29 35,768
Nonearning assets218,613219,526219,901
Total assets$3,036,777 $3,088,329 $2,991,818 
Interest bearing liabilities
Interest bearing demand$411,796 0.15 $153 $412,117 0.21 $216 $272,506 0.34 $236 
Savings and money market980,0690.18 441972,0820.27 647786,5890.59 1,162
Time deposits - retail440,3900.74 825443,5120.94 1,042715,3100.97 1,744
Time deposits - wholesale118,5208.45 2,523192,9547.56 3,636223,0951.77 991
Total interest-bearing deposits1,950,7750.80 3,9422,020,6651.10 5,5411,997,5000.82 4,133
Federal Home Loan Bank advances and other borrowings10,7240.33 922,5820.23 1340,5671.02 104
Subordinated debt70,7975.49 980 70,7465.56 980 70,3615.61 992 
Total borrowed funds81,521 4.81 989 93,328 4.27 993 110,928 3.93 1,096 
Total interest-bearing liabilities2,032,296 0.96 4,931 2,113,993 1.24 6,534 2,108,428 0.99 5,229 
Net interest spread (5)
3.95 28,9993.81 28,5614.30 30,539
Noninterest bearing deposits616,904 (0.22)597,188 (0.27)536,353(0.20)
Other noninterest bearing liabilities36,405 37,644 47,602
Shareholders' equity351,172339,504 299,435
Total liabilities and shareholders' equity$3,036,777 $3,088,329 $2,991,818 
Cost of funds0.740.970.79
Net interest margin (6)
4.224.14 4.54
(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 $669, $667, and $760, for the three months ended September 30, 2021, June 30, 2021, and September 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 Third 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
September 30, 2021June 30, 2021September 30, 2020
Adjusted net interest margin:
Net interest income$28,999 $28,561 $30,539 
Add: tax equivalent interest income947 1,021 1,107 
Add: swap termination fees2,290 2,859 — 
Less: purchase accounting adjustments(993)(1,839)(3,868)
Adjusted net interest income31,243 30,602 27,778 
Average earning assets$2,818,164 $2,868,803 $2,771,917 
Net interest margin-tax equivalent4.22 %4.14 %4.54 %
Adjusted net interest margin4.40 %4.28 %3.99 %
Adjusted net income (1):
Net income attributable to common shareholders$13,289 $13,045 $11,533 
Add: merger related expenses1,453 — 77 
Less: income tax impact of merger related expenses(48)— (10)
Adjusted net income$14,694 $13,045 $11,600 
Adjusted diluted earnings per share:
Adjusted net income$14,694 $13,045 $11,600 
Weighted average shares - diluted16,805,15716,784,74416,649,673
Diluted earnings per share $0.79 $0.78 $0.69 
Adjusted diluted earnings per share$0.87 $0.78 $0.70 
Adjusted annualized return on average assets:
Adjusted net income$14,694 $13,045 $11,600 
Average assets3,036,777 3,088,329 2,991,818 
Annualized return on average assets 1.74 %1.69 %1.53 %
Adjusted annualized return on average assets1.92 %1.69 %1.54 %
Adjusted annualized return on average equity:
Adjusted net income$14,694 $13,045 $11,600 
Average total shareholders' equity351,172 339,504 299,435 
Annualized return on average equity15.01 %15.41 %15.32 %
Adjusted annualized return on average equity16.60 %15.41 %15.41 %
Adjusted annualized return on average tangible common equity:
Average total shareholders' equity$351,172 $339,504 $299,435 
Less: average intangible assets(64,607)(65,088)(63,212)
Average tangible common equity$286,565 $274,416 $236,223 
Adjusted net income14,694 13,045 11,600 
Annualized return on average tangible common equity 18.40 %19.07 %19.42 %
Adjusted annualized return on average tangible common equity20.34 %19.07 %19.54 %
This information is preliminary and based on company data available at the time of presentation.
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Reliant Bancorp, Inc. Reports Third Quarter 2021 Results
Page 12
Three Months Ended
September 30, 2021June 30, 2021September 30, 2020
Adjusted pre-tax pre-provision income:
Income before provision for income taxes$17,487 $16,387 $14,707 
Add: merger related expenses1,453 — 77 
Add: provision for loan losses— — 1,500 
Adjusted pre-tax pre-provision income$18,940 $16,387 $16,284 
Tangible common equity to tangible assets:
Tangible common equity:
Total shareholders' equity$356,315 $346,289 $307,086 
Less: intangible assets(64,374)(64,830)(63,326)
Tangible common equity$291,941 $281,459 $243,760 
Tangible assets:
Total assets$3,013,559 $3,098,464 $3,044,512 
Less: intangible assets(64,374)(64,830)(63,326)
Tangible assets$2,949,185 $3,033,634 $2,981,186 
Total shareholders' equity to total assets11.82 %11.18 %10.09 %
Tangible common equity to tangible assets9.90 %9.28 %8.18 %
Tangible book value per share:
Tangible common equity$291,941 $281,459 $243,760 
Total shares of common stock outstanding16,682,928 16,672,511 16,634,572 
Book value per common share$21.36 $20.77 $18.46 
Tangible book value per share $17.50 $16.88 $14.65 
Allowance for loan losses plus unaccreted loan purchase discounts:
Allowance for loan losses$20,897 $20,894 $19,834 
Unaccreted loan purchase discounts11,993 12,980 18,939 
Allowance for loan losses plus unaccreted loan purchase discounts:$32,890 $33,874 $38,773 
Total loans2,389,833 2,321,070 2,357,898 
Allowance for loan losses plus unaccreted purchased loan discounts to total loans1.38 %1.46 %1.64 %
Allowance for loan losses to total loans0.87 %0.90 %0.84 %
Bank segment adjusted net income:
Bank segment net income$13,289 $13,045 $11,533 
Add: merger related expenses1,453 — 77 
Less: income tax impact of merger related expenses(48)— (10)
Bank segment adjusted net income$14,694 $13,045 $11,600 
Bank segment adjusted noninterest expense:
Bank segment noninterest expense$18,004 $16,570 $16,144 
Add: merger related expenses(1,453)— (77)
Bank segment adjusted noninterest expense$16,551 $16,570 $16,067 
This information is preliminary and based on company data available at the time of presentation.
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Reliant Bancorp, Inc. Reports Third Quarter 2021 Results
Page 13
Three Months Ended
September 30, 2021June 30, 2021September 30, 2020
Bank segment adjusted efficiency ratio:
Bank segment adjusted total revenues:
Bank segment net interest income$28,164 $27,440 $29,731 
Add: Tax equivalent interest income947 1,021 1,107 
Add: Bank segment noninterest income6,651 5,335 2,219 
Less: Gains on sale of securities, OREO, premises and equipment (2)
(2,405)(2,922)9 
Add: Swap termination fee (2)
2,290 2,859 — 
Bank segment adjusted total revenues$35,647 $33,733 $33,066 
Bank segment efficiency ratio51.7 %50.6 %50.5 %
Bank segment adjusted efficiency ratio46.4 %49.1 %48.6 %
Adjusted cost of funds:
Adjusted interest expense:
Interest expense$4,931 $6,534 $5,229 
Less: Swap termination fees(2,290)(2,859)— 
Adjusted interest expense$2,641 $3,675 $5,229 
Average funds2,649,200 2,711,181 2,644,781 
Cost of funds0.74 %0.97 %0.79 %
Adjusted cost of funds0.40 %0.54 %0.79 %
Adjusted cost of interest-bearing liabilities:
Adjusted interest expense$2,641 $3,675 $5,229 
Average interest-bearing liabilities2,032,296 2,113,993 2,108,428 
Cost of interest-bearing liabilities0.96 %1.24 %0.99 %
Adjusted cost of interest-bearing liabilities0.52 %0.70 %0.99 %
Adjusted cost of deposits:
Adjusted deposit expense:
Deposit expense$3,942 $5,541 $4,133 
Less: Swap termination fees(2,290)(2,859)— 
Adjusted deposit expense$1,652 $2,682 $4,133 
Average deposits2,567,679 2,617,853 2,533,853 
Cost of deposits0.58 %0.83 %0.62 %
Adjusted cost of deposits0.26 %0.41 %0.62 %

(1) The swap termination fees included in the adjusted net interest income calculation in the second and third quarters 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.
(2) Securities sold in the second and third quarters 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-