RENASANT CORPORATION TUPELO, Miss., Oct. 21, 2014 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced its financial results for the third quarter of 2014. Net income for the third quarter of 2014 increased to $15,535,000, or basic and diluted earnings per share ("EPS") of $0.49, as compared to $6,637,000, or basic and diluted EPS of $0.24, for the third quarter of 2013. The Company's balance sheet and results of operations as of and for the three months ending September 30, 2014, include the impact of the Company's acquisition of First M&F Corporation ("First M&F"), which was completed on September 1, 2013. Periods presented prior to September 1, 2013, do not reflect any impact from the First M&F acquisition.
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For the third quarter of 2014, the Company's return on average assets and return on average equity were 1.07% and 8.84%, respectively, as compared to 0.56% and 4.75%, respectively, for the third quarter of 2013. The Company's 2014 third quarter return on average tangible assets and return on average tangible equity were 1.20% and 16.50%, respectively, as compared to 0.63% and 8.74%, respectively, for the third quarter of 2013.
"Our financial results for the three and nine month-periods ending September 30, 2014, reflect the continued execution of our long-term strategies, specifically higher levels of earnings and improved profitability. Our earnings per share of 49 cents represent our highest quarterly earnings in the 110-year history of our company, excluding periods which included one-time gains associated with acquisitions. In addition, our return on average assets for the quarter was 1.07%, which marks the second consecutive quarter of exceeding the 1% threshold, while our year-to-date return on average assets was 1.01%," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "These accomplishments were driven by strong non-acquired loan growth and a continued focus on revenue growth while at the same time managing expenses."
Total assets as of September 30, 2014, were approximately $5.75 billion, as compared to $5.75 billion from December 31, 2013, and $5.83 billion on a linked quarter basis. The decrease in assets on a linked quarter basis is due to the seasonal runoff of deposits, primarily in public fund deposits, and the related divestiture of the liquid assets (low-yielding interest bearing cash or short-term investments) in which these seasonal deposits were invested.
Total loans, including loans acquired in either the First M&F merger or in FDIC-assisted transactions (collectively referred to as "acquired loans"), were approximately $3.96 billion at September 30, 2014, as compared to $3.88 billion at December 31, 2013, and $3.96 billion on a linked quarter basis. Excluding acquired loans, loans grew $280 million, or 12.92% annualized, to $3.17 billion at September 30, 2014, as compared to $2.89 billion at December 31, 2013, and increased $69 million, or 8.87% annualized, from $3.09 billion on a linked quarter basis.
Total deposits were $4.76 billion at September 30, 2014, as compared to $4.84 billion at December 31, 2013, and $4.89 billion on a linked quarter basis, the decrease being due to the seasonal runoff of deposits noted above. Noninterest-bearing deposits averaged approximately $896.9 million, which represents 18.74% of the Company's average deposits, for the third quarter of 2014, as compared to $660.4 million, or 16.79% of average deposits, for the third quarter of 2013. The Company's cost of funds was 47 basis points for the third quarter of 2014, as compared to 57 basis points for the same quarter in 2013.
As of September 30, 2014, the Company's Tier 1 leverage capital ratio was 9.31%, its Tier 1 risk-based capital ratio was 12.28%, and its total risk-based capital ratio was 13.43%. The Company's tangible common equity ratio was 7.37%. All of the Company's regulatory capital ratios increased on a linked quarter basis and continue to be in excess of the regulatory minimums required to be classified as "well-capitalized."
Net interest income was $50.5 million for the third quarter of 2014, as compared to $38.7 million for the third quarter of 2013, and $52.2 million on a linked quarter basis. Net interest margin was 4.12% for the third quarter of 2014, as compared to 3.86% for the third quarter of 2013, and 4.24% on a linked quarter basis. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans increased net interest margin 11 basis points in the third quarter of 2014, as compared to 28 basis points on a linked quarter basis. The Company did not record any additional interest income in connection with accelerated paydowns and paydowns from acquired loans in the third quarter of 2013.
Noninterest income was $22.6 million for the third quarter of 2014, as compared to $18.9 million for the third quarter of 2013, and $19.5 million on a linked quarter basis. The Company's increase in noninterest income year-over-year is primarily attributable to the First M&F merger. On a linked quarter basis, the Company's growth in noninterest income was driven by higher levels of deposit and loan fees, and increased revenues generated from the Company's insurance, wealth management and mortgage banking divisions.
Noninterest expense was $48.2 million for the third quarter of 2014, as compared to $46.6 million for the third quarter of 2013. The increase in noninterest expense, as compared to the same period in 2013, was primarily due to the expenses of the acquired First M&F operations. On a linked quarter comparison, noninterest expense decreased by $1.2 million, or 2.47%, due primarily to a decrease in salaries and employee benefits and other noninterest expenses. The decrease in other noninterest expenses is due to a reduction in professional fees, communication and marketing expenses.
At September 30, 2014, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $71.8 million and total OREO was $34.1 million. The Company's nonperforming loans and OREO that were acquired either through the First M&F merger or in connection with FDIC-assisted transactions (collectively referred to as "acquired nonperforming assets") were $45.6 million and $13.6 million, respectively, at September 30, 2014
Since the acquired nonperforming assets were recorded at fair value at the time of acquisition or subject to loss-share agreements with the FDIC, which significantly mitigates our actual loss, the remaining information in this release on nonperforming loans, OREO and the related asset quality ratios excludes these acquired nonperforming assets.
The Company's nonperforming loans were $26.2 million as of September 30, 2014, as compared to $19.2 million as of December 31, 2013. Nonperforming loans as a percentage of total loans were 0.83% as of September 30, 2014, as compared to 0.66% as of December 31, 2013. The increase in nonperforming loans at September 30, 2014, was primarily due to a $4.7 million matured loan, which carried 90 days past due, that was brought current and renewed subsequent to quarter end.
Annualized net charge-offs as a percentage of average loans were 0.50% for the third quarter of 2014, as compared to 0.38% for the third quarter of 2013. The Company recorded a provision for loan losses of $2.2 million for the third quarter of 2014, as compared to $2.3 million for the third quarter of 2013.
The allowance for loan losses totaled $44.6 million at September 30, 2014, as compared to $47.7 million as of December 31, 2013. The allowance for loan losses as a percentage of loans was 1.41% as of September 30, 2014, as compared to 1.65% as of December 31, 2013.
The Company's coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 169.81% as of September 30, 2014, as compared to 248.90% as of December 31, 2013. Loans 30-to-89 days past due as a percentage of total loans declined to 0.25% at September 30, 2014, as compared to 0.31% at December 31, 2013. OREO was $20.5 million as of September 30, 2014, as compared to $27.5 million as of December 31, 2013.
CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time on Wednesday, October 22, 2014.
The webcast and call can be accessed by pre-registering (preferred method) at http://dpregister.com/10054202 or http://services.choruscall.com/links/rnst141022.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Third Quarter 2014 Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.
The webcast will be archived on www.renasant.com beginning one hour after the call and will remain accessible for one year. Replays can also be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 10054202 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until November 6, 2014.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 110-year-old financial services institution, and Renasant Insurance. Renasant has assets of approximately $5.8 billion and operates more than 120 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama and Georgia.
NOTE TO INVESTORS:
This news release may contain, or incorporate by reference, statements which may 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. Such forward looking statements usually include words such as "expects," "projects," "anticipates," "believes," "intends," "estimates," "strategy," "plan," "potential," "possible" and other similar expressions.
Prospective investors are cautioned that any such forward-looking statements are not guarantees for future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include significant fluctuations in interest rates, inflation, economic recession, significant changes in the federal and state legal and regulatory environment, significant underperformance in our portfolio of outstanding loans, and competition in our markets. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
NON-GAAP FINANCIAL MEASURES:
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets, which the Company's management uses when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indications 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 can vary extensively from company to company and 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.
The specific non-GAAP financial measures used are return on average tangible shareholders' equity, return on average tangible assets and the ratio of tangible equity to tangible assets (commonly referred to as the "tangible capital ratio"). The presentation of this non-GAAP financial information is not 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 other 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.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption "Reconciliation of GAAP to Non-GAAP."
Contacts:
For Media: For Financials:
John Oxford Kevin Chapman
First Vice President Executive Vice President
Director of Corp Communication Chief Financial Officer
(662) 680-1219 (662) 680-1450
joxford@renasant.com kchapman@renasant.com
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q3 2014 - For the Nine Months Ending
2014 2013 Q3 2013 September 30,
---- ---- -------------
Third Second First Fourth Third Second First Percent Percent
Statement of earnings Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
---------------------
Interest income - taxable equivalent basis $58,098 $60,002 $57,811 $58,644 $46,083 $41,331 $40,371 26.07 $175,911 $127,785 37.66
Interest income $56,359 $58,277 $56,177 $57,076 $44,638 $39,945 $38,945 26.26 $170,813 $123,528 38.28
Interest expense 5,886 6,108 6,206 6,408 5,890 5,541 5,564 (0.07) 18,200 16,995 7.09
Net interest
income 50,473 52,169 49,971 50,668 38,748 34,404 33,381 30.26 152,613 106,533 43.25
Provision for loan losses 2,217 1,450 1,450 2,000 2,300 3,000 3,050 (3.61) 5,117 8,350 (38.72)
Net interest
income after
provision 48,256 50,719 48,521 48,668 36,448 31,404 30,331 32.40 147,496 98,183 50.23
Service charges on deposit accounts 6,747 6,194 5,915 6,165 5,361 4,509 4,500 25.85 18,856 14,370 31.22
Fees and commissions on loans and deposits 6,236 5,515 4,972 5,300 4,982 4,848 4,831 25.17 16,723 14,661 14.06
Insurance commissions and fees 2,270 2,088 1,863 1,869 1,295 951 861 75.29 6,221 3,107 100.23
Wealth management revenue 2,197 2,170 2,144 2,124 2,091 1,715 1,724 5.07 6,511 5,530 17.74
Securities gains (losses) 375 - - - - - 54 - 375 54 594.44
Gain on sale of mortgage loans 2,635 2,005 1,586 1,350 2,788 3,870 3,565 (5.49) 6,226 10,223 (39.10)
Gain on acquisition - - - - - - - - - - -
Other 2,102 1,499 2,136 1,533 2,418 1,424 1,843 (13.07) 5,737 5,685 0.91
Total noninterest
income 22,562 19,471 18,616 18,341 18,935 17,317 17,378 19.16 60,649 53,630 13.09
Salaries and employee benefits 29,569 29,810 28,428 29,911 25,689 21,906 21,274 15.10 87,807 68,869 27.50
Data processing 2,906 2,850 2,695 2,546 2,236 2,045 2,043 29.96 8,451 6,324 33.63
Occupancy and equipment 5,353 4,906 4,847 5,105 4,576 3,668 3,608 16.98 15,106 11,852 27.46
Other real estate 1,101 1,068 1,701 1,607 1,537 1,773 2,049 (28.37) 3,870 5,359 (27.79)
Amortization of intangibles 1,381 1,427 1,471 1,508 724 314 323 90.75 4,279 1,361 214.40
Merger-related expenses - - 195 1,879 3,763 385 - (100.00) 195 4,148 (95.30)
Debt extinguishment penalty - - - - - - - - - - -
Other 7,865 9,335 8,308 8,573 8,088 7,643 8,303 (2.76) 25,508 24,034 6.13
Total noninterest
expense 48,175 49,396 47,645 51,129 46,613 37,734 37,600 3.35 145,216 121,947 19.08
Income before income taxes 22,643 20,794 19,492 15,880 8,770 10,987 10,109 158.20 62,929 29,866 110.70
Income taxes 7,108 5,941 5,895 4,620 2,133 2,968 2,538 233.24 18,944 7,639 147.99
Net income $15,535 $14,853 $13,597 $11,260 $6,637 $8,019 $7,571 134.08 $43,985 $22,227 97.89
==========
Basic earnings per share $0.49 $0.47 $0.43 $0.36 $0.24 $0.32 $0.30 104.17 $1.40 $0.86 62.79
Diluted earnings per share 0.49 0.47 0.43 0.36 0.24 0.32 0.30 104.17 1.39 0.85 63.53
Average basic shares outstanding 31,526,423 31,496,737 31,436,148 31,366,019 27,234,927 25,223,749 25,186,229 15.76 31,486,767 25,889,139 21.62
Average diluted shares outstanding 31,718,529 31,698,198 31,724,474 31,617,681 27,447,382 25,373,868 25,288,785 15.56 31,694,601 26,053,173 21.65
Common shares outstanding 31,533,703 31,519,641 31,480,395 31,387,668 31,358,583 25,231,074 25,208,733 0.56 31,533,703 31,358,583 0.56
Cash dividend per common share $0.17 $0.17 $0.17 $0.17 $0.17 $0.17 $0.17 - $0.51 $0.51 -
Performance ratios
------------------
Return on average shareholders' equity 8.84% 8.67% 8.19% 6.71% 4.75% 6.35% 6.12% 8.58% 5.71%
Return on average tangible shareholders'
equity (1) 16.50% 16.55% 16.05% 13.55% 8.74% 10.47% 10.19% 16.37% 9.78%
Return on average assets 1.07% 1.02% 0.93% 0.78% 0.56% 0.76% 0.73% 1.01% 0.68%
Return on average tangible assets (2) 1.20% 1.15% 1.05% 0.90% 0.63% 0.82% 0.79% 1.13% 0.74%
Net interest margin (FTE) 4.12% 4.24% 4.04% 4.16% 3.86% 3.88% 3.89% 4.13% 3.88%
Yield on earning assets (FTE) 4.58% 4.72% 4.53% 4.67% 4.42% 4.49% 4.51% 4.61% 4.47%
Cost of funding 0.47% 0.48% 0.48% 0.51% 0.57% 0.60% 0.62% 0.48% 0.59%
Average earning assets to average assets 87.32% 87.39% 87.35% 86.78% 87.43% 87.32% 86.31% 87.35% 87.04%
Average loans to average deposits 82.26% 79.11% 77.00% 79.89% 81.69% 80.93% 80.30% 79.44% 81.00%
Noninterest income (less securities gains/losses) to average assets
1.53% 1.34% 1.27% 1.27% 1.59% 1.64% 1.67% 1.38% 1.63%
Noninterest expense (less debt prepayment penalties/merger-related expenses) to
average assets
3.32% 3.39% 3.25% 3.40% 3.59% 3.54% 3.63% 3.32% 3.59%
Net overhead ratio 1.79% 2.06% 1.97% 2.14% 2.01% 1.90% 1.95% 1.94% 1.96%
Efficiency ratio (FTE) (4) 62.90% 65.38% 65.48% 67.65% 71.25% 69.74% 71.51% 64.56% 70.84%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q3 2014 - For the Nine Months Ending
2014 2013 Q3 2013 September 30,
---- ---- -------------
Third Second First Fourth Third Second First Percent Percent
Average balances Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
----------------
Total assets $5,758,081 $5,836,607 $5,927,884 $5,741,794 $4,729,079 $4,231,947 $4,206,411 21.76 $5,840,232 $4,391,370 32.99
Earning assets 5,027,805 5,100,834 5,178,069 4,982,614 4,134,730 3,695,409 3,630,759 21.60 5,101,686 3,822,145 33.48
Securities 1,001,547 1,026,948 1,002,519 924,179 819,351 754,515 698,863 22.24 1,010,335 758,018 33.29
Mortgage loans held for sale 31,832 26,004 19,925 25,248 37,056 32,318 22,347 (14.10) 25,964 30,627 (15.23)
Loans, net of unearned 3,937,142 3,897,028 3,868,747 3,865,615 3,213,853 2,845,260 2,804,618 22.51 3,901,223 2,956,076 31.97
Intangibles 300,725 302,181 303,599 304,388 227,606 190,362 190,787 32.13 302,158 203,053 48.81
-
Noninterest-bearing deposits $896,856 $905,180 $949,317 $888,888 $660,415 $562,104 $549,514 35.80 $916,926 $591,394 55.04
Interest-bearing deposits 3,889,132 4,020,754 4,074,746 3,949,909 3,273,658 2,953,435 2,943,247 18.80 3,994,197 3,057,991 30.62
Total deposits 4,785,988 4,925,934 5,024,063 4,838,797 3,934,073 3,515,539 3,492,761 21.65 4,911,123 3,649,385 34.57
Borrowed funds 214,017 169,373 170,091 173,583 189,909 164,894 163,981 12.69 184,655 173,023 6.72
Shareholders' equity 697,103 686,794 673,047 665,513 553,772 506,225 501,634 25.88 685,733 520,734 31.69
Q3 2014 - As of
2014 2013 Q4 2013 September 30,
---- ---- -------------
Third Second First Fourth Third Second First Percent Percent
Balances at period end Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
---------------------- ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Total assets $5,751,711 $5,826,020 $5,902,831 $5,746,270 $5,735,865 $4,242,401 $4,267,658 0.09 $5,751,711 $5,735,865 0.28
Earning assets 5,058,094 5,069,743 5,168,996 4,999,434 4,972,051 3,715,321 3,706,707 1.17 5,058,094 4,972,051 1.73
Securities 985,170 1,013,200 1,054,511 925,670 915,869 746,530 740,613 6.43 985,170 915,869 7.57
Mortgage loans held for sale 30,451 28,116 28,433 33,440 28,466 50,268 26,286 (8.94) 30,451 28,466 6.97
Loans acquired from M&F 636,628 694,115 746,047 813,451 891,420 - - (21.74) 636,628 891,420 (28.58)
Loans not acquired 3,165,492 3,096,286 2,947,836 2,885,802 2,794,116 2,683,017 2,594,438 9.69 3,165,492 2,794,116 13.29
Loans acquired and subject to loss share 155,319 167,129 173,545 181,765 195,996 201,494 213,872 (14.55) 155,319 195,996 (20.75)
Total loans 3,957,439 3,957,530 3,867,428 3,881,018 3,881,532 2,884,511 2,808,310 1.97 3,957,439 3,881,532 1.96
Intangibles 298,609 301,478 302,903 304,330 305,065 190,208 190,522 (1.88) 298,609 305,065 (2.12)
Noninterest-bearing deposits $935,544 $902,766 $914,964 $856,020 $876,138 $560,965 $567,065 9.29 $935,544 $876,138 6.78
Interest-bearing deposits 3,828,126 3,983,965 4,089,820 3,985,892 3,958,618 2,944,193 2,988,110 (3.96) 3,828,126 3,958,618 (3.30)
Total deposits 4,763,670 4,886,731 5,004,784 4,841,912 4,834,756 3,505,158 3,555,175 (1.62) 4,763,670 4,834,756 (1.47)
Borrowed funds 227,664 189,831 168,700 171,875 177,168 195,789 164,063 32.46 227,664 177,168 28.50
Shareholders' equity 700,475 688,215 676,715 665,652 657,256 500,678 502,375 5.23 700,475 657,256 6.58
Market value per common share $27.05 $29.07 $29.05 $31.46 $27.17 $24.34 $22.38 (14.02) $27.05 $27.17 (0.44)
Book value per common share 22.21 21.83 21.50 21.21 20.96 19.84 19.93 4.71 22.21 20.96 5.96
Tangible book value per common share 12.74 12.27 11.87 11.51 11.23 12.31 12.37 10.69 12.74 11.23 13.45
Shareholders' equity to assets (actual) 12.18% 11.81% 11.46% 11.58% 11.46% 11.80% 11.77% 5.13 12.18% 11.46% 6.28
Tangible capital ratio (3) 7.37% 7.00% 6.68% 6.64% 6.49% 7.66% 7.65% 10.99 7.37% 6.49% 13.64
Leverage ratio 9.31% 8.91% 8.56% 8.68% 8.66% 9.83% 9.79% 7.26 9.31% 8.66% 7.51
Tier 1 risk-based capital ratio 12.28% 11.82% 11.55% 11.41% 11.40% 12.87% 12.86% 7.62 12.28% 11.40% 7.72
Total risk-based capital ratio 13.43% 12.96% 12.72% 12.58% 12.53% 14.14% 14.13% 6.76 13.43% 12.53% 7.18
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q3 2014 - As of
2014 2013 Q4 2013 September 30,
---- ---- -------------
Third Second First Fourth Third Second First Percent Percent
Loans not acquired Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
------------------ ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Commercial, financial, agricultural $378,802 $365,262 $347,828 $341,600 $331,142 $307,718 $298,013 10.89 $378,802 $331,142 14.39
Lease financing 5,377 1,767 612 52 75 103 162 10,240.38 5,377 75 7,069.33
Real estate - construction 193,787 172,319 149,450 147,075 127,013 117,339 109,484 31.76 193,787 127,013 52.57
Real estate - 1-4 family mortgages 984,778 966,546 941,260 928,803 891,422 859,884 834,204 6.03 984,778 891,422 10.47
Real estate - commercial mortgages 1,527,680 1,516,372 1,441,403 1,404,617 1,383,680 1,335,402 1,295,213 8.76 1,527,680 1,383,680 10.41
Installment loans to individuals 75,068 74,020 67,283 63,655 60,784 62,571 57,362 17.93 75,068 60,784 23.50
Loans, net of
unearned $3,165,492 $3,096,286 $2,947,836 $2,885,802 $2,794,116 $2,683,017 $2,594,438 9.69 $3,165,492 $2,794,116 13.29
==============
Loans acquired and subject to loss share by category
----------------------------------------------------
Commercial, financial, agricultural $7,698 $7,677 $8,283 $9,546 $10,280 $10,283 $10,157 (19.36) $7,698 $10,280 (25.12)
Lease financing - - - - - - - - - - -
Real estate - construction 1,648 1,648 1,648 1,648 1,648 1,648 1,648 - 1,648 1,648 -
Real estate - 1-4 family mortgages 46,354 49,616 52,252 54,466 56,722 60,409 65,489 (14.89) 46,354 56,722 (18.28)
Real estate - commercial mortgages 99,580 108,166 111,337 116,077 127,315 129,120 136,541 (14.21) 99,580 127,315 (21.78)
Installment loans to individuals 39 22 25 28 31 34 37 39.29 39 31 25.81
Loans, net of
unearned $155,319 $167,129 $173,545 $181,765 $195,996 $201,494 $213,872 (14.55) $155,319 $195,996 (20.75)
==============
Loans Acquired from M&F
-----------------------
Commercial, financial, agricultural $64,058 $74,887 $84,004 $117,817 $139,821 $ - $ - (45.63) $64,058 $139,821 (54.19)
Lease financing - - - - - - - - - - -
Real estate - construction 1,631 2,610 4,803 12,713 23,556 - - (87.17) 1,631 23,556 (93.08)
Real estate - 1-4 family mortgages 190,447 205,126 217,748 224,965 244,079 - - (15.34) 190,447 244,079 (21.97)
Real estate - commercial mortgages 363,793 390,781 415,418 429,878 449,589 - - (15.37) 363,793 449,589 (19.08)
Installment loans to individuals 16,699 20,711 24,074 28,078 34,375 - - (40.53) 16,699 34,375 (51.42)
Loans, net of
unearned $636,628 $694,115 $746,047 $813,451 $891,420 $ - $ - (21.74) $636,628 $891,420 (28.58)
==============
Asset quality data
------------------
Assets not acquired:
Nonaccrual loans $19,070 $17,175 $18,365 $16,863 $19,995 $20,554 $25,382 13.09 $19,070 $19,995 (4.63)
Loans 90 past due or more 7,177 3,615 1,322 2,287 2,078 1,983 2,601 213.82 7,177 2,078 245.38
----- ----- ----- ----- ----- ----- ----- ----- -----
Nonperforming loans 26,247 20,790 19,687 19,150 22,073 22,537 27,983 37.06 26,247 22,073 18.91
Other real estate owned 20,461 23,950 25,117 27,543 27,357 33,247 39,786 (25.71) 20,461 27,357 (25.21)
Nonperforming assets not acquired $46,708 $44,740 $44,804 $46,693 $49,430 $55,784 $67,769 0.03 $46,708 $49,430 (5.51)
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Assets acquired and subject to loss share:
Nonaccrual loans $33,216 $41,425 $46,078 $49,194 $49,585 $47,281 $47,972 (32.48) $33,216 $49,585 (33.01)
Loans 90 past due or more 1,979 - 32 - 505 126 - - 1,979 505 291.88
----- --- --- --- --- --- --- ----- ---
Non-performing loans subject to loss share 35,195 41,425 46,110 49,194 50,090 47,407 47,972 (28.46) 35,195 50,090 (29.74)
Other real estate owned 4,033 7,472 10,218 12,942 16,580 27,835 35,095 (68.84) 4,033 16,580 (75.68)
Nonperforming assets acquired and subject to loss
share $39,228 $48,897 $56,328 $62,136 $66,670 $75,242 $83,067 (36.87) $39,228 $66,670 (41.16)
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Assets acquired from M&F:
Nonaccrual loans $1,991 $5,966 $6,393 $6,275 $224 $ - $ - (68.27) $1,991 $224 788.84
Loans 90 past due or more 8,375 5,057 1,922 1,899 8,568 - - 341.02 8,375 8,568 (2.25)
----- ----- ----- ----- ----- --- --- ----- -----
Nonperforming loans 10,366 11,023 8,315 8,174 8,792 - - 26.82 10,366 8,792 17.90
Other real estate owned 9,565 10,381 12,406 12,402 13,223 - - (22.88) 9,565 13,223 (27.67)
Nonperforming assets acquired from M&F $19,931 $21,404 $20,721 $20,576 $22,015 $ - $ - (3.13) $19,931 $22,015
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Net loan charge-offs (recoveries) $4,952 $2,195 $1,067 $584 $3,084 $2,471 $893 747.95 $8,214 $6,448 27.39
Allowance for loan losses 44,569 47,304 48,048 47,665 46,250 47,034 46,505 (6.50) 44,569 $46,250 (3.63)
Annualized net loan charge-offs / average loans 0.50% 0.23% 0.11% 0.06% 0.38% 0.35% 0.13% 0.28% 0.29%
Nonperforming loans / total loans* 1.81% 1.85% 1.92% 1.97% 2.09% 2.42% 2.70% 1.81% 2.09%
Nonperforming assets / total assets* 1.84% 1.97% 2.06% 2.25% 2.41% 3.09% 3.53% 1.84% 2.41%
Allowance for loan losses / total loans* 1.13% 1.20% 1.24% 1.23% 1.19% 1.63% 1.66% 1.13% 1.19%
Allowance for loan losses / nonperforming loans* 62.07% 64.59% 64.83% 62.29% 57.13% 67.25% 61.23% 62.07% 57.13%
Nonperforming loans / total loans** 0.83% 0.67% 0.67% 0.66% 0.79% 0.84% 1.08% 0.83% 0.79%
Nonperforming assets / total assets** 0.81% 0.77% 0.76% 0.81% 0.86% 1.31% 1.59% 0.81% 0.86%
Allowance for loan losses / total loans** 1.41% 1.53% 1.63% 1.65% 1.66% 1.75% 1.79% 1.41% 1.66%
Allowance for loan losses / nonperforming loans** 169.81% 227.53% 244.06% 248.90% 209.53% 208.70% 166.19% 169.81% 209.53%
*Based on all assets (including acquired assets)
**Excludes assets acquired from M&F and assets covered under loss share
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
RECONCILIATION OF GAAP TO NON-GAAP
----------------------------------
For the Nine Months Ending
2014 2013 September 30,
---- ---- -------------
Third Second First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2014 2013
------- ------- ------- ------- ------- ------- ------- ---- ----
Net income (GAAP) $15,535 $14,853 $13,597 $11,260 $6,637 $8,019 $7,571 $43,985 $22,227
Amortization of
intangibles, net
of tax 947 1,019 1,026 1,069 548 229 242 2,992 1,019
---------------
Tangible net income (non-GAAP) $16,482 $15,872 $14,623 $12,329 $7,185 $8,248 $7,813 $46,977 $23,246
Average shareholders' equity (GAAP) $697,103 $686,794 $673,047 $665,513 $553,772 $506,225 $501,634 $685,733 $520,734
Intangibles 300,725 302,181 303,599 304,388 227,606 190,362 190,787 302,158 203,053
-----------
Average tangible shareholders' equity (non-
GAAP) $396,378 $384,613 $369,448 $361,125 $326,166 $315,863 $310,847 $383,575 $317,681
Average total assets (GAAP) $5,758,081 $5,836,607 $5,927,884 $5,741,794 $4,729,079 $4,231,947 $4,206,411 $5,840,232 $4,391,370
Intangibles 300,725 302,181 303,599 304,388 227,606 190,362 190,787 302,158 203,053
-----------
Average tangible assets (non-GAAP) $5,457,356 $5,534,426 $5,624,285 $5,437,406 $4,501,473 $4,041,585 $4,015,624 $5,538,074 $4,188,317
Actual total assets (GAAP) $5,751,711 $5,826,020 $5,902,831 $5,746,270 $5,735,865 $4,242,401 $4,267,658 $5,751,711 $5,735,865
Intangibles 298,609 301,478 302,903 304,330 305,065 190,208 190,522 298,609 305,065
-----------
Actual tangible assets (non-GAAP) $5,453,102 $5,524,542 $5,599,928 $5,441,940 $5,430,800 $4,052,193 $4,077,136 $5,453,102 $5,430,800
(1) Return on Average Equity
Return on (average) shareholders' equity
(GAAP) 8.84% 8.67% 8.19% 6.71% 4.75% 6.35% 6.12% 8.58% 5.71%
Effect of
adjustment for
intangible assets 7.66% 7.88% 7.86% 6.83% 3.98% 4.12% 4.07% 7.80% 4.07%
Return on average tangible shareholders'
equity (non-GAAP) 16.50% 16.55% 16.05% 13.55% 8.74% 10.47% 10.19% 16.37% 9.78%
(2) Return on Average Assets
Return on (average) assets (GAAP) 1.07% 1.02% 0.93% 0.78% 0.56% 0.76% 0.73% 1.01% 0.68%
Effect of
adjustment for
intangible assets 0.13% 0.13% 0.12% 0.12% 0.08% 0.06% 0.06% 0.13% 0.07%
Return on average tangible assets (non-GAAP) 1.20% 1.15% 1.05% 0.90% 0.63% 0.82% 0.79% 1.13% 0.74%
(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets
(GAAP) 12.18% 11.81% 11.46% 11.58% 11.46% 11.80% 11.77% 12.18% 11.46%
Effect of
adjustment for
intangible assets 4.81% 4.81% 4.79% 4.94% 4.97% 4.14% 4.12% 4.81% 4.97%
Tangible capital ratio (non-GAAP) 7.37% 7.00% 6.68% 6.64% 6.49% 7.66% 7.65% 7.37% 6.49%
CALCULATION OF EFFICIENCY RATIO
-------------------------------
Interest income (FTE) $58,098 $60,002 $57,811 $58,644 $46,083 $41,331 $40,371 $175,911 $127,785
Interest expense 5,886 6,108 6,206 6,408 5,890 5,541 5,564 18,200 16,995
---------------
Net Interest income (FTE) $52,212 $53,894 $51,605 $52,236 $40,193 $35,790 $34,807 $157,711 $110,790
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Total noninterest income $22,562 $19,471 $18,616 $18,341 $18,935 $17,317 $17,378 $60,649 $53,630
Securities gains
(losses) 375 - - - - - 54 375 54
Gain on acquisition - - - - - - - - -
-------------------
Total noninterest income $22,187 $19,471 $18,616 $18,341 $18,935 $17,317 $17,324 $60,274 $53,576
Total Income (FTE) $74,399 $73,365 $70,221 $70,577 $59,128 $53,107 $52,131 $217,985 $164,366
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Total noninterest expense $48,175 $49,396 $47,645 $51,129 $46,613 $37,734 $37,600 $145,216 $121,947
Amortization of
intangibles 1,381 1,427 1,471 1,508 724 314 323 4,279 1,361
Merger-related
expenses - - 195 1,879 3,763 385 - 195 4,148
Debt extinguishment
penalty - - - - - - - - -
-------------------
Total noninterest expense $46,794 $47,969 $45,979 $47,742 $42,126 # $37,035 $37,277 $140,742 $116,438
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(4) Efficiency Ratio 62.90% 65.38% 65.48% 67.65% 71.25% 69.74% 71.51% 64.56% 70.84%
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SOURCE Renasant Corporation
