RENASANT CORPORATION 
By TUPELO, Miss., April 22, 2014 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced its financial results for the first quarter of 2014. Net income for the first quarter of 2014 was $13,597,000, or basic and diluted earnings per share ("EPS") of $0.43, as compared to $7,571,000, or basic and diluted EPS of $0.30, for the first quarter of 2013. The Company's balance sheet and results of operations as of and for the three months ending March 31, 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 first quarter of 2014, the Company's return on average assets and return on average equity were 0.93% and 8.19%, respectively, as compared to 0.73% and 6.12%, respectively, for the first quarter of 2013. The Company's 2014 first quarter return on average tangible assets and return on average tangible equity were 1.05% and 16.05%, respectively, as compared to 0.79% and 10.19%, respectively, for the first quarter of 2013.
"Our first quarter results represent a strong beginning to 2014 as net income and EPS increased 80% and 43%, respectively, as compared to the same quarter last year," said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "With the operations of First M&F fully integrated, we believe we have made a strong start toward achieving our key performance goals and increasing profitability throughout 2014."
Total assets as of March 31, 2014, were approximately $5.90 billion, as compared to $4.27 billion as of March 31, 2013, and $5.7 billion on a linked quarter basis. The increase in assets at March 31, 2014, as compared to the same period in 2013 is due primarily to the First M&F acquisition. The increase in assets on a linked quarter basis is due to a seasonal influx of deposits, primarily in public fund deposits. Due to the short-term nature of these deposit influxes, the funds from these deposits remained in liquid assets (low-yielding interest bearing cash or short-term investments). The excess cash and short-term investments negatively impacted net interest margin by 15 basis points, leverage ratio by 16 basis points, tangible capital ratio by 12 basis points and return on average assets by 3 basis points.
Total deposits, including deposits acquired in the First M&F acquisition, were $5.0 billion at March 31, 2014, as compared to $3.56 billion at March 31, 2013, and $4.84 billion at December 31, 2013. The Company's noninterest-bearing deposits averaged approximately $949 million, or 18.9% of average deposits, for the first quarter of 2014, as compared to $550 million, or 15.7% of average deposits, for the first quarter of 2013. The Company's cost of funds was 48 basis points for the first quarter of 2014, as compared to 62 basis points for the same quarter in 2013.
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 $3.87 billion at March 31, 2014, as compared to $2.81 billion at March 31, 2013. Excluding acquired loans, loans grew 13.6% to $2.95 billion at March 31, 2014, as compared to $2.59 billion at March 31, 2013.
At March 31, 2014, the Company's Tier 1 leverage capital ratio was 8.56%, its Tier 1 risk-based capital ratio was 11.55% and its total risk-based capital ratio was 12.72%. In all capital ratio categories, the Company's regulatory capital ratios continued to be in excess of the regulatory minimums required to be classified as "well-capitalized." The Company's tangible common equity ratio was 6.68% as of March 31, 2014.
Net interest income was $50.0 million for the first quarter of 2014, as compared to $33.4 million for the first quarter of 2013, and $50.7 million for the fourth quarter of 2013. Net interest margin was 4.04% for the first quarter of 2014, as compared to 3.89% for the first quarter of 2013, and 4.16% for the fourth quarter of 2013. The primary factor causing the Company's linked quarter decline in net interest margin was the negative impact of the seasonal influx of public fund deposits and the resulting short-term liquidity described above.
Noninterest income was $18.6 million for the first quarter of 2014, as compared to $17.4 million for the first quarter of 2013, and $18.3 million for the fourth quarter of 2013. The Company's increase in noninterest income year-over-year is primarily attributable to the First M&F merger, notably a 31.44% increase in service charges and a 116.38% increase in insurance commissions and fees.
Noninterest expense was $47.6 million for the first quarter of 2014, as compared to $37.6 million for the first quarter of 2013, and $51.1 million for the fourth quarter of 2013. The Company recorded merger expenses associated with the First M&F acquisition of $195,000 and $1.9 million during the first quarter of 2014 and fourth quarter of 2013, respectively. The Company did not record any merger expenses during the first quarter of 2013. The Company's 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.
At March 31, 2014, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $74.1 million and total other real estate owned ("OREO") was $47.7 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 $54.4 million and $22.6 million, respectively at March 31, 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 $19.7 million as of March 31, 2014, as compared to $28.0 million as of March 31, 2013. Nonperforming loans as a percentage of total loans were 0.67% as of March 31, 2014, as compared to 1.08% as of March 31, 2013.
Annualized net charge-offs as a percentage of average loans were 0.11% for the first quarter of 2014, as compared to 0.13% for the first quarter of 2013. The Company recorded a provision for loan losses of $1.5 million for the first quarter of 2014, as compared to $3.1 million for the first quarter of 2013.
The allowance for loan losses totaled $48.0 million at March 31, 2014, as compared to $46.5 million as of March 31, 2013, and $47.7 million as of December 31, 2013. The allowance for loan losses as a percentage of loans was 1.63% as of March 31, 2014, as compared to 1.79% as of March 31, 2013.
The Company's coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 244.06% as of March 31, 2014, as compared to 166.19% as of March 31, 2013. Loans 30 to 89 days past due as a percentage of total loans declined to 0.25% at March 31, 2014, as compared to 0.32% at March 31, 2013.
OREO was $25.1 million as of March 31, 2014, as compared to $39.8 million as of March 31, 2013. In addition, during the first quarter of 2014, the Company experienced a significant reduction in costs associated with OREO as OREO expense decreased approximately 16.98% as compared to the first quarter of 2013.
"Our key performance drivers, specifically loan pipelines, low-costing deposits, credit metrics and operational efficiencies, continue to show positive trends and healthy outlooks," stated McGraw. "In addition, now that the acquired First M&F operations are fully integrated, we believe we are beginning to experience the full synergies of our combined companies, and we remain well positioned to take advantage of strategic growth opportunities when available."
CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 a.m. Eastern Time on Wednesday, April 23, 2014.
The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst140423.html. To access the conference via telephone, dial 1-888-317-6016 in the United States and request the Renasant Corporation First Quarter 2014 Earnings Webcast and Conference Call. International participants should dial 1-412-317-6016 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 10044091 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until 9:00 a.m. Eastern Time on May 8, 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 $5.9 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."
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q1 2014 - For the Three Months Ending
2014 2013 Q1 2013 March 31,
---- ---- ---------
First Fourth Third Second First Percent Percent
Statement of earnings Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
--------------------- --------
Interest income - taxable equivalent basis $57,810 $58,644 $46,083 $41,331 $40,371 43.20 $57,810 $40,371 43.20
Interest income $56,177 $57,076 $44,638 $39,945 $38,945 44.25 $56,177 $38,945 44.25
Interest expense 6,206 6,408 5,890 5,541 5,564 11.54 6,206 5,564 11.54
Net interest income 49,971 50,668 38,748 34,404 33,381 49.70 49,971 33,381 49.70
Provision for loan losses 1,450 2,000 2,300 3,000 3,050 (52.46) 1,450 3,050 (52.46)
Net interest income after
provision 48,521 48,668 36,448 31,404 30,331 59.97 48,521 30,331 59.97
Service charges on deposit accounts 5,915 6,165 5,361 4,509 4,500 31.44 5,915 4,500 31.44
Fees and commissions on loans and deposits 4,972 5,300 4,982 4,848 4,831 2.92 4,972 4,831 2.92
Insurance commissions and fees 1,863 1,869 1,295 951 861 116.38 1,863 861 116.38
Wealth management revenue 2,144 2,124 2,091 1,715 1,724 24.36 2,144 1,724 24.36
Securities gains (losses) - - - - 54 (100.00) - 54 (100.00)
Gain on sale of mortgage loans 1,586 1,350 2,788 3,870 3,565 (55.51) 1,586 3,565 (55.51)
Gain on acquisition - - - - - - - - -
Other 2,136 1,533 2,418 1,424 1,843 15.90 2,136 1,843 15.90
Total noninterest income 18,616 18,341 18,935 17,317 17,378 7.12 18,616 17,378 7.12
Salaries and employee benefits 28,428 29,911 25,689 21,906 21,274 33.63 28,428 21,274 33.63
Data processing 2,695 2,546 2,236 2,045 2,043 31.91 2,695 2,043 31.91
Occupancy and equipment 4,847 5,105 4,576 3,668 3,608 34.34 4,847 3,608 34.34
Other real estate 1,701 1,607 1,537 1,773 2,049 (16.98) 1,701 2,049 (16.98)
Amortization of intangibles 1,471 1,508 724 314 323 355.42 1,471 323 355.42
Merger-related expenses 195 1,879 3,763 385 - - 195 - -
Debt extinguishment penalty - - - - - - - - -
Other 8,308 8,573 8,088 7,643 8,303 0.06 8,308 8,303 0.06
Total noninterest expense 47,645 51,129 46,613 37,734 37,600 26.72 47,645 37,600 26.72
Income before income taxes 19,492 15,880 8,770 10,987 10,109 92.82 19,492 10,109 92.82
Income taxes 5,895 4,620 2,133 2,968 2,538 132.27 5,895 2,538 132.27
Net income $13,597 $11,260 $6,637 $8,019 $7,571 79.59 $13,597 $7,571 79.59
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Basic earnings per share $0.43 $0.36 $0.24 $0.32 $0.30 43.33 $0.43 $0.30 43.33
Diluted earnings per share 0.43 0.36 0.24 0.32 0.30 43.33 0.43 0.30 43.33
Average basic shares outstanding 31,436,148 31,366,019 27,234,927 25,223,749 25,186,229 24.81 31,436,148 25,186,229 24.81
Average diluted shares outstanding 31,724,474 31,617,681 27,447,382 25,373,868 25,288,785 25.45 31,724,474 25,288,785 25.45
Common shares outstanding 31,480,395 31,387,668 31,358,583 25,231,074 25,208,733 24.88 31,480,395 25,208,733 24.88
Cash dividend per common share $0.17 $0.17 $0.17 $0.17 $0.17 - $0.17 $0.17 -
Performance ratios
------------------
Return on average shareholders' equity 8.19% 6.71% 4.75% 6.35% 6.12% 8.19% 6.12%
Return on average tangible shareholders' equity (1) 16.05% 13.55% 8.74% 10.47% 10.19% 16.05% 10.19%
Return on average assets 0.93% 0.78% 0.56% 0.76% 0.73% 0.93% 0.73%
Return on average tangible assets (2) 1.05% 0.90% 0.63% 0.82% 0.79% 1.05% 0.79%
Net interest margin (FTE) 4.04% 4.16% 3.86% 3.88% 3.89% 4.04% 3.89%
Yield on earning assets (FTE) 4.53% 4.67% 4.42% 4.49% 4.51% 4.53% 4.51%
Cost of funding 0.48% 0.51% 0.57% 0.60% 0.62% 0.48% 0.62%
Average earning assets to average assets 87.35% 86.78% 87.43% 87.32% 86.31% 87.35% 86.31%
Average loans to average deposits 77.00% 79.89% 81.69% 80.93% 80.30% 77.00% 80.30%
Noninterest income (less securities gains/
losses) to average assets 1.27% 1.27% 1.59% 1.64% 1.67% 1.27% 1.67%
Noninterest expense (less debt prepayment penalties/
merger-related expenses) to
average assets 3.25% 3.40% 3.59% 3.54% 3.63% 3.25% 3.63%
Net overhead ratio 1.97% 2.14% 2.01% 1.90% 1.95% 1.97% 1.95%
Efficiency ratio (FTE)** 65.48% 67.65% 71.25% 69.74% 71.51% 65.48% 71.51%
**Excludes debt extinguishment penalties, amortization of intangibles and merger-related expenses from noninterest expense and profit (loss) on sales of securities and gains on acquisitions from noninterest income
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q1 2014 - For the Three Months Ending
2014 2013 Q1 2013 March 31,
---- ---- ---------
First Fourth Third Second First Percent Percent
Average balances Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
---------------- -------- ----
Total assets $5,927,884 $5,741,794 $4,729,079 $4,231,947 $4,206,411 40.92 $5,927,884 $4,206,411 40.92
Earning assets 5,178,069 4,982,614 4,134,730 3,695,409 3,630,759 42.62 5,178,069 3,630,759 42.62
Securities 1,002,519 924,179 819,351 754,515 698,863 43.45 1,002,519 698,863 43.45
Mortgage loans held for sale 19,925 25,248 37,056 32,318 22,347 (10.84) 19,925 22,347 (10.84)
Loans, net of unearned 3,868,747 3,865,615 3,213,853 2,845,260 2,804,618 37.94 3,868,747 2,804,618 37.94
Intangibles 303,599 304,388 227,606 190,362 190,787 59.13 303,599 190,787 59.13
-
Noninterest-bearing deposits $949,317 $888,888 $660,415 $562,104 $549,514 72.76 $949,317 $549,514 72.76
Interest-bearing deposits 4,074,746 3,949,909 3,273,658 2,953,435 2,943,247 38.44 4,074,746 2,943,247 38.44
Total deposits 5,024,063 4,838,797 3,934,073 3,515,539 3,492,761 43.84 5,024,063 3,492,761 43.84
Borrowed funds 170,091 173,583 189,909 164,894 163,981 3.73 170,091 163,981 3.73
Shareholders' equity 673,047 665,513 553,772 506,225 501,634 34.17 673,047 501,634 34.17
Balances at period end
----------------------
Total assets $5,902,831 $5,746,270 $5,735,865 $4,242,401 $4,267,658 38.32 $5,902,831 $4,267,658 38.32
Earning assets 5,168,996 4,999,434 4,972,051 3,715,321 3,706,707 39.45 5,168,996 3,706,707 39.45
Securities 1,054,511 925,670 915,869 746,530 740,613 42.38 1,054,511 740,613 42.38
Mortgage loans held for sale 28,433 33,440 28,466 50,268 26,286 8.17 28,433 26,286 8.17
Loans acquired from M&F 746,047 813,451 891,420 - - - 746,047 - -
Loans not acquired 2,947,836 2,885,802 2,794,116 2,683,017 2,594,438 13.62 2,947,836 2,594,438 13.62
Loans acquired and subject to loss share 173,545 181,765 195,996 201,494 213,872 (18.86) 173,545 213,872 (18.86)
Total loans 3,867,428 3,881,018 3,881,532 2,884,511 2,808,310 37.71 3,867,428 2,808,310 37.71
Intangibles 302,903 304,330 305,065 190,208 190,522 58.99 302,903 190,522 58.99
Noninterest-bearing deposits $914,964 $856,020 $876,138 $560,965 $567,065 61.35 $914,964 $567,065 61.35
Interest-bearing deposits 4,089,820 3,985,892 3,958,618 2,944,193 2,988,110 36.87 4,089,820 2,988,110 36.87
Total deposits 5,004,784 4,841,912 4,834,756 3,505,158 3,555,175 40.77 5,004,784 3,555,175 40.77
Borrowed funds 168,700 171,875 177,168 195,789 164,063 2.83 168,700 164,063 2.83
Shareholders' equity 676,715 665,652 657,256 500,678 502,375 34.70 676,715 502,375 34.70
Market value per common share $29.05 $31.46 $27.17 $24.34 $22.38 29.80 $29.05 $22.38 29.80
Book value per common share 21.50 21.21 20.96 19.84 19.93 7.88 21.50 $19.93 7.88
Tangible book value per common share 11.87 11.51 11.23 12.31 12.37 (4.04) 11.87 $12.37 (4.04)
Shareholders' equity to assets (actual) 11.46% 11.58% 11.46% 11.80% 11.77% (2.63) 11.46% 11.77% (2.63)
Tangible capital ratio (3) 6.68% 6.64% 6.49% 7.66% 7.65% (12.68) 6.68% 7.65% (12.68)
Leverage ratio 8.56% 8.68% 8.61% 9.83% 9.79% (12.56) 8.56% 9.79% (12.56)
Tier 1 risk-based capital ratio 11.55% 11.41% 11.34% 12.87% 12.86% (10.19) 11.55% 12.86% (10.19)
Total risk-based capital ratio 12.72% 12.58% 12.47% 14.14% 14.13% (9.98) 12.72% 14.13% (9.98)
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q1 2014 - For the Three Months Ending
2014 2013 Q1 2013 March 31,
---- ---- ---------
First Fourth Third Second First Percent Percent
Loans not acquired Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
------------------ ------- ------- ------- ------- ------- -------- ---- ---- --------
Commercial, financial, agricultural $347,828 $341,600 $331,142 $307,718 $298,013 16.72 $347,828 $298,013 16.72
Lease financing 612 52 75 103 162 277.78 612 162 277.78
Real estate - construction 149,450 147,075 127,013 117,339 109,484 36.50 149,450 109,484 36.50
Real estate - 1-4 family mortgages 941,260 928,803 891,422 859,884 834,204 12.83 941,260 834,204 12.83
Real estate - commercial mortgages 1,441,403 1,404,617 1,383,680 1,335,402 1,295,213 11.29 1,441,403 1,295,213 11.29
Installment loans to individuals 67,283 63,655 60,784 62,571 57,362 17.30 67,283 57,362 17.30
------ ------
Loans, net of unearned $2,947,836 $2,885,802 $2,794,116 $2,683,017 $2,594,438 13.62 $2,947,836 $2,594,438 13.62
========== ========== ========== ========== ========== ========== ==========
Loans acquired and subject to loss share by category
----------------------------------------------------
Commercial, financial, agricultural $8,283 $9,546 $10,280 $10,283 $10,157 (18.45) $8,283 $10,157 (18.45)
Lease financing - - - - - - - - -
Real estate - construction 1,648 1,648 1,648 1,648 1,648 - 1,648 1,648 -
Real estate - 1-4 family mortgages 52,252 54,466 56,722 60,409 65,489 (20.21) 52,252 65,489 (20.21)
Real estate - commercial mortgages 111,337 116,077 127,315 129,120 136,541 (18.46) 111,337 136,541 (18.46)
Installment loans to individuals 25 28 31 34 37 (32.43) 25 37 (32.43)
--- --- --- ---
Loans, net of unearned $173,545 $181,765 $195,996 $201,494 $213,872 (18.86) $173,545 $213,872 (18.86)
======== ======== ======== ======== ======== ======== ========
Loans Acquired from M&F
-----------------------
Commercial, financial, agricultural $84,004 $117,817 $139,821 $ - $ - - $84,004 $ - -
Lease financing - - - - - - - - -
Real estate - construction 4,803 12,713 23,556 - - - 4,803 - -
Real estate - 1-4 family mortgages 217,748 224,965 244,079 - - - 217,748 - -
Real estate - commercial mortgages 415,418 429,878 449,589 - - - 415,418 - -
Installment loans to individuals 24,074 28,078 34,375 - - - 24,074 - -
------
Loans, net of unearned $746,047 $813,451 $891,420 $ - $ - - $746,047 $ - -
======== ======== ======== ===================== ===================== ======== =====================
Asset quality data
------------------
Assets not acquired:
Nonaccrual loans $18,365 $16,863 $19,995 $20,554 $25,382 (27.65) $18,365 $25,382 (27.65)
Loans 90 past due or more 1,322 2,287 2,078 1,983 2,601 (49.17) 1,322 2,601 (49.17)
----- ----- ----- ----- ----- ----- -----
Nonperforming loans 19,687 19,150 22,073 22,537 27,983 (29.65) 19,687 27,983 (29.65)
Other real estate owned 25,117 27,543 27,357 33,247 39,786 (36.87) 25,117 39,786 (36.87)
Nonperforming assets not acquired $44,804 $46,693 $49,430 $55,784 $67,769 (33.89) $44,804 $67,769 (33.89)
=======
Assets acquired and subject to loss share:
Nonaccrual loans $46,078 $49,194 $49,585 $47,281 $47,972 (3.95) $46,078 $47,972 (3.95)
Loans 90 past due or more 32 - 505 126 - - 32 - -
--- --- --- --- --- --- ---
Non-performing loans subject to loss share 46,110 49,194 50,090 47,407 47,972 (3.88) 46,110 47,972 (3.88)
Other real estate owned 10,218 12,942 16,580 27,835 35,095 (70.88) 10,218 35,095 (70.88)
------
Nonperforming assets acquired and subject to loss share $56,328 $62,136 $66,670 $75,242 $83,067 (32.19) $56,328 $83,067 (32.19)
======= ======= ======= ======= ======= ======= =======
Assets acquired from M&F:
Nonaccrual loans $6,393 $6,275 $224 $ - $ - - $6,393 $ - -
Loans 90 past due or more 1,922 1,899 8,568 - - - 1,922 - -
----- ----- ----- --- --- ----- ---
Nonperforming loans 8,315 8,174 8,792 - - - 8,315 - -
Other real estate owned 12,406 12,402 13,223 - - - 12,406 - -
------
Nonperforming assets acquired from M&F $20,721 $20,576 $22,015 $ - $ - - $20,721 $ - -
======= ======= ======= ===================== ===================== ======= =====================
Net loan charge-offs (recoveries) $1,067 $584 $3,084 $2,471 $893 19.48 $1,067 $893 19.48
Allowance for loan losses 48,048 47,665 46,250 47,034 46,505 3.32 48,048 $46,505 3.32
Annualized net loan charge-offs / average loans 0.11% 0.06% 0.38% 0.35% 0.13% 0.11% 0.13%
Nonperforming loans / total loans* 0.76% 0.74% 0.84% 0.84% 1.08% 0.76% 1.08%
Nonperforming assets / total assets* 1.11% 1.17% 1.25% 1.31% 1.59% 1.11% 1.59%
Allowance for loan losses / total loans* 1.30% 1.29% 1.25% 1.75% 1.79% 1.30% 1.79%
Allowance for loan losses / nonperforming loans* 171.59% 174.44% 149.85% 208.70% 166.19% 171.59% 166.19%
Nonperforming loans / total loans** 0.67% 0.66% 0.79% 0.84% 1.08% 0.67% 1.08%
Nonperforming assets / total assets** 0.76% 0.81% 0.86% 1.31% 1.59% 0.76% 1.59%
Allowance for loan losses / total loans** 1.63% 1.65% 1.66% 1.75% 1.79% 1.63% 1.79%
Allowance for loan losses / nonperforming loans** 244.06% 248.90% 209.53% 208.70% 166.19% 244.06% 166.19%
*Based on assets not subject to loss share (includes assets acquired from M&F)
**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 Three Months
Ending
2014 2013 March 31,
---- ---- ---------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter 2014 2013
------- ------- ------- ------- ------- ---- ----
Net income (GAAP) $13,597 $11,260 $6,637 $8,019 $7,571 $13,597 $7,571
Amortization of
intangibles,
net of tax 1,026 1,069 548 229 242 1,026 242
----- ----- --- --- --- ----- ---
Tangible net income (non-GAAP) $14,623 $12,329 $7,185 $8,248 $7,813 $14,623 $7,813
Average shareholders' equity (GAAP) $673,047 $665,513 $553,772 $506,225 $501,634 $673,047 $501,634
Intangibles 303,599 304,388 227,606 190,362 190,787 303,599 190,787
------- ------- ------- ------- ------- ------- -------
Average tangible shareholders' equity (non-GAAP) $369,448 $361,125 $326,166 $315,863 $310,847 $369,448 $310,847
Average total assets (GAAP) $5,927,884 $5,741,794 $4,729,079 $4,231,947 $4,206,411 $5,927,884 $4,206,411
Intangibles 303,599 304,388 227,606 190,362 190,787 303,599 190,787
------- ------- ------- ------- ------- ------- -------
Average tangible assets (non-GAAP) $5,624,285 $5,437,406 $4,501,473 $4,041,585 $4,015,624 $5,624,285 $4,015,624
Actual total assets (GAAP) $5,902,831 $5,746,270 $5,735,865 $4,242,401 $4,267,658 $5,902,831 $4,267,658
Intangibles 302,903 304,330 305,065 190,208 190,522 302,903 190,522
------- ------- ------- ------- ------- ------- -------
Actual tangible assets (non-GAAP) $5,599,928 $5,441,940 $5,430,800 $4,052,193 $4,077,136 $5,599,928 $4,077,136
(1) Return on Average Equity
Return on (average) shareholders' equity (GAAP) 8.19% 6.71% 4.75% 6.35% 6.12% 8.19% 6.12%
Effect of
adjustment for
intangible
assets 7.86% 6.83% 3.98% 4.12% 4.07% 7.86% 4.07%
Return on average tangible shareholders' equity (non-GAAP) 16.05% 13.55% 8.74% 10.47% 10.19% 16.05% 10.19%
(2) Return on Average Assets
Return on (average) assets (GAAP) 0.93% 0.78% 0.56% 0.76% 0.73% 0.93% 0.73%
Effect of
adjustment for
intangible
assets 0.12% 0.12% 0.08% 0.06% 0.06% 0.12% 0.06%
Return on average tangible assets (non-GAAP) 1.05% 0.90% 0.63% 0.82% 0.79% 1.05% 0.79%
(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP) 11.46% 11.58% 11.46% 11.80% 11.77% 11.46% 11.77%
Effect of
adjustment for
intangible
assets 4.79% 4.94% 4.97% 4.14% 4.12% 4.79% 4.12%
Tangible capital ratio (non-GAAP) 6.68% 6.64% 6.49% 7.66% 7.65% 6.68% 7.65%
Contacts: Media Financials
John Oxford Kevin Chapman
Vice President Executive Vice President
Director of External Affairs Chief Financial Officer
(662) 680-1219 (662) 680-1450
joxford@renasant.com kchapman@renasant.com
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SOURCE Renasant Corporation
