RENASANT CORPORATION TUPELO, Miss., Jan. 20, 2015 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced earnings results for the fourth quarter and year ended December 31, 2014. Net income for the fourth quarter of 2014 was approximately $15.6 million, up 39%, as compared to $11.3 million for the fourth quarter of 2013. Basic and diluted earnings per share ("EPS") were $0.49 for the fourth quarter of 2014, as compared to basic and diluted EPS of $0.36 for the fourth quarter of 2013.
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Net income for 2014 was $59.6 million, as compared to $33.5 million for 2013. Basic and diluted EPS were $1.89 and $1.88, respectively, for 2014, as compared to basic and diluted EPS of $1.23 and $1.22, respectively, for 2013.
In December of 2014, the Company announced a definitive merger agreement to acquire Heritage Financial Group, Inc. ("Heritage"), a bank holding company headquartered in Albany, Georgia, and the parent of HeritageBank of the South, in an all-stock merger. During the fourth quarter of 2014, the Company incurred merger expenses of approximately $500 thousand, or $0.01 in EPS, related to the Heritage merger.
For the fourth quarter of 2014, the Company's return on average assets and return on average equity were 1.08% and 8.72%, respectively, as compared to 0.78% and 6.71%, respectively, for the fourth quarter of 2013. The Company's 2014 fourth quarter return on average tangible assets and return on average tangible equity were 1.20% and 15.89%, respectively, as compared to 0.90% and 13.55%, respectively, for the fourth quarter of 2013.
For 2014, the Company's return on average assets and return on average equity were 1.02% and 8.61%, respectively, as compared to 0.71% and 6.01%, respectively, for 2013. The Company's 2014 return on average tangible assets and return on average tangible equity were 1.15% and 16.25%, respectively, as compared to 0.79% and 10.83%, respectively, for 2013.
"Our financial results for the fourth quarter of 2014 represent a strong finish to a great year. During 2014, we grew non-acquired loans over 13%, increased net interest margin, enhanced efficiency and improved our credit risk portfolio. All of these accomplishments resulted in record earnings and superior returns on profitability metrics," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "As we look to 2015, we believe we are well positioned to continue to improve on profitability and earnings growth, which in turn will generate shareholder value."
Total assets at December 31, 2014, were approximately $5.80 billion, as compared to $5.75 billion at December 31, 2013.
Total loans, including loans acquired in either the Company's acquisition of First M&F Corporation ("First M&F") in the third quarter of 2013 or in FDIC-assisted transactions (collectively referred to as "acquired loans"), increased 2.75% to approximately $3.99 billion at December 31, 2014, as compared to $3.88 billion at December 31, 2013. Excluding acquired loans, loans grew 13.23% to $3.27 billion at December 31, 2014, as compared to $2.89 billion at December 31, 2013.
Total period end deposits remained flat at $4.84 billion at December 31, 2014, as compared to December 31, 2013. The Company's noninterest-bearing deposits averaged approximately $937 million, or 19.6% of average deposits, for the fourth quarter of 2014, as compared to $889 million, or 18.4% of average deposits, for the fourth quarter of 2013. The Company's cost of funds was 45 basis points for the fourth quarter of 2014, as compared to 51 basis points for the same quarter in 2013.
At December 31, 2014, the Company's tangible common equity ratio was 7.52%, Tier 1 leverage capital ratio was 9.53%, Tier 1 risk-based capital ratio was 12.45%, and total risk-based capital ratio was 13.54%. The Company's capital ratios were all in excess of regulatory minimums required to be classified as "well-capitalized."
Net interest income was $50.0 million for the fourth quarter of 2014, as compared to $50.7 million for the fourth quarter of 2013. Net interest margin was 4.09% for the fourth quarter of 2014, as compared to 4.16% for the fourth quarter of 2013. 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 fourth quarter of 2014, as compared to 16 basis points in the same period in 2013.
The Company's noninterest income is derived from diverse lines of business which primarily consist of mortgage, wealth management and insurance revenue sources along with income from deposit and loan products. For the fourth quarter of 2014, noninterest income increased to $20.0 million, as compared to $18.3 million for the fourth quarter of 2013. The Company's growth in noninterest income for the fourth quarter of 2014, as compared to the fourth quarter of 2013, was driven primarily by higher levels of service charges on deposits and mortgage banking income.
Noninterest expense was $46.0 million for the fourth quarter of 2014, as compared to $51.1 million for the fourth quarter of 2013. The reduction in noninterest expenses for the fourth quarter of 2014, as compared to the same period in 2013, is primarily due to reductions in salary and employee benefits, other real estate expense and merger related expenses. The Company recorded merger expenses during the fourth quarter of 2014 of approximately $500 thousand related to the pending Heritage merger and $1.9 million during the fourth quarter of 2013 related to the First M&F acquisition.
At December 31, 2014, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $55.1 million and total other real estate owned ("OREO") was $34.5 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 $34.9 million and $17.4 million, respectively at December 31, 2014.
Since the acquired nonperforming assets were recorded at fair value at the time of acquisition or are 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.
Nonperforming assets decreased 20.17% to $37.3 million at December 31, 2014, as compared to $46.7 million at December 31, 2013.
Nonperforming loans were $20.2 million at December 31, 2014, as compared to $19.2 million at December 31, 2013. Early stage delinquencies, or loans 30-to-89 days past due, as a percentage of total loans were 0.32% at December 31, 2014, as compared to 0.31% at December 31, 2013.
OREO was $17.1 million at December 31, 2014, as compared to $27.5 million at December 31, 2013, a 38.0% decrease. The Company continues to proactively market the properties held in OREO as it sold approximately $28.8 million of OREO during 2014 and $6.1 million during the fourth quarter of 2014.
The Company recorded a provision for loan losses of $1.1 million for the fourth quarter of 2014, as compared to $2.0 million for the fourth quarter of 2013. For the fourth quarter of 2014, net charge-offs were $3.3 million, as compared to $584 thousand in net charge-offs for the same period in 2013. Annualized net charge-offs as a percentage of average loans were 0.33% for the fourth quarter of 2014, as compared to 0.06% for the same quarter in 2013.
The allowance for loan losses as a percentage of loans was 1.29% at December 31, 2014, as compared to 1.65% at December 31, 2013. The Company's coverage ratio, or the allowance for loan losses as a percentage of nonperforming loans, decreased to 209.49% at December 31, 2014, as compared to 248.90% at December 31, 2013.
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, January 21, 2015, through the Company's website: www.renasant.com or http://services.choruscall.com/links/rnst150121.html. If Internet access is unavailable, the conference may also be heard live (listen-only) via telephone by dialing 1-877-513-1143 in the United States and requesting the Renasant Corporation earnings call. International participants should dial 1-412-902-4145.
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 10058507 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until 9:00 a.m. ET on February 5, 2015.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 111-year-old financial services institution, and Renasant Insurance. Renasant has assets of approximately $5.80 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."
Contact: 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
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(Unaudited)
(Dollars in thousands, except per share data)
Q4 2014 - For the Year Ending
2014 2013 Q4 2013 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First Percent Percent
Statement of earnings Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
--------------------- --------
Interest income - taxable equivalent basis $57,335 $58,098 $60,002 $57,811 $58,644 $46,083 $41,331 $40,371 (2.23) $233,246 $186,429 25.11
Interest income $55,596 $56,359 $58,277 $56,177 $57,076 $44,638 $39,945 $38,945 (2.59) $226,409 $180,604 25.36
Interest expense 5,580 5,886 6,108 6,206 6,408 5,890 5,541 5,564 (12.92) 23,780 23,403 1.61
Net interest income 50,016 50,473 52,169 49,971 50,668 38,748 34,404 33,381 (1.29) 202,629 157,201 28.90
Provision for loan losses 1,050 2,217 1,450 1,450 2,000 2,300 3,000 3,050 (47.50) 6,167 10,350 (40.42)
Net interest income after provision 48,966 48,256 50,719 48,521 48,668 36,448 31,404 30,331 0.61 196,462 146,851 33.78
Service charges on deposit accounts 6,527 6,747 6,194 5,915 6,165 5,361 4,509 4,500 5.87 25,383 20,535 23.61
Fees and commissions on loans and deposits 5,150 6,236 5,515 4,972 5,300 4,982 4,848 4,831 (2.83) 21,873 19,961 9.58
Insurance commissions and fees 1,973 2,270 2,088 1,863 1,869 1,295 951 861 5.56 8,194 4,976 64.67
Wealth management revenue 2,144 2,197 2,170 2,144 2,124 2,091 1,715 1,724 0.94 8,655 7,654 13.08
Securities gains (losses) - 375 - - - - - 54 - 375 54 594.44
Gain on sale of mortgage loans 2,368 2,635 2,005 1,586 1,350 2,788 3,870 3,565 75.41 8,594 11,573 (25.74)
Gain on acquisition - - - - - - - - - - - -
Other 1,809 2,102 1,499 2,136 1,533 2,418 1,424 1,843 18.00 7,546 7,218 4.54
Total noninterest income 19,971 22,562 19,471 18,616 18,341 18,935 17,317 17,378 8.89 80,620 71,971 12.02
Salaries and employee benefits 27,301 29,569 29,810 28,428 29,911 25,689 21,906 21,274 (8.73) 115,108 98,780 16.53
Data processing 2,949 2,906 2,850 2,695 2,546 2,236 2,045 2,043 15.83 11,400 8,870 28.52
Occupancy and equipment 5,146 5,353 4,906 4,847 5,105 4,576 3,668 3,608 0.80 20,252 16,957 19.43
Other real estate 723 1,101 1,068 1,701 1,607 1,537 1,773 2,049 (55.01) 4,593 6,966 (34.07)
Amortization of intangibles 1,327 1,381 1,427 1,471 1,508 724 314 323 (12.00) 5,606 2,869 95.40
Merger-related expenses 499 - - 195 1,879 3,763 385 - (73.44) 694 6,027 (88.49)
Debt extinguishment penalty - - - - - - - - - - - -
Other 8,034 7,865 9,335 8,308 8,573 8,088 7,643 8,303 (6.29) 33,542 32,607 2.87
Total noninterest expense 45,979 48,175 49,396 47,645 51,129 46,613 37,734 37,600 (10.07) 191,195 173,076 10.47
Income before income taxes 22,958 22,643 20,794 19,492 15,880 8,770 10,987 10,109 44.57 85,887 45,746 87.75
Income taxes 7,361 7,108 5,941 5,895 4,620 2,133 2,968 2,538 59.33 26,305 12,259 114.58
Net income $15,597 $15,535 $14,853 $13,597 $11,260 $6,637 $8,019 $7,571 38.52 $59,582 $33,487 77.93
Basic earnings per share $0.49 $0.49 $0.47 $0.43 $0.36 $0.24 $0.32 $0.30 36.11 $1.89 $1.23 53.66
Diluted earnings per share 0.49 0.49 0.47 0.43 0.36 0.24 0.32 0.30 36.11 1.88 1.22 54.10
Average basic shares outstanding 31,537,278 31,526,423 31,496,737 31,436,148 31,366,019 27,234,927 25,223,749 25,186,229 0.55 31,499,498 27,269,613 15.51
Average diluted shares outstanding 31,781,734 31,718,529 31,698,198 31,724,474 31,617,681 27,447,382 25,373,868 25,288,785 0.52 31,759,647 27,460,757 15.65
Common shares outstanding 31,545,145 31,533,703 31,519,641 31,480,395 31,387,668 31,358,583 25,231,074 25,208,733 0.50 31,545,145 31,387,668 0.50
Cash dividend per common share $0.17 $0.17 $0.17 $0.17 $0.17 $0.17 $0.17 $0.17 - $0.68 $0.68 -
Performance ratios
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Return on average shareholders' equity 8.72% 8.84% 8.67% 8.19% 6.71% 4.75% 6.35% 6.12% 8.61% 6.01%
Return on average tangible shareholders' equity (1) 15.89% 16.50% 16.55% 16.05% 13.55% 8.74% 10.47% 10.19% 16.25% 10.83%
Return on average assets 1.08% 1.07% 1.02% 0.93% 0.78% 0.56% 0.76% 0.73% 1.02% 0.71%
Return on average tangible assets (2) 1.20% 1.20% 1.15% 1.05% 0.90% 0.63% 0.82% 0.79% 1.15% 0.79%
Net interest margin (FTE) 4.09% 4.12% 4.24% 4.04% 4.16% 3.86% 3.88% 3.89% 4.12% 3.96%
Yield on earning assets (FTE) 4.53% 4.58% 4.72% 4.53% 4.67% 4.42% 4.49% 4.51% 4.59% 4.53%
Cost of funding 0.45% 0.47% 0.48% 0.48% 0.51% 0.57% 0.60% 0.62% 0.47% 0.57%
Average earning assets to average assets 87.41% 87.32% 87.39% 87.35% 86.78% 87.43% 87.32% 86.31% 87.37% 86.96%
Average loans to average deposits 82.67% 82.26% 79.11% 77.00% 79.89% 81.69% 80.93% 80.30% 80.24% 80.66%
Noninterest income (less securities gains/
losses) to average assets 1.38% 1.53% 1.34% 1.27% 1.27% 1.59% 1.64% 1.67% 1.38% 1.52%
Noninterest expense (less debt prepayment penalties/
merger-related expenses) to average
assets 3.14% 3.32% 3.39% 3.25% 3.40% 3.59% 3.54% 3.63% 3.28% 3.53%
Net overhead ratio 1.76% 1.79% 2.06% 1.97% 2.14% 2.01% 1.90% 1.95% 1.90% 2.01%
Efficiency ratio (FTE) (4) 61.56% 62.90% 65.38% 65.48% 67.65% 71.25% 69.74% 71.51% 63.82% 69.88%
RENASANT CORPORATION
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(Unaudited)
(Dollars in thousands, except per share data)
Q4 2014 - For the Year Ending
2014 2013 Q4 2013 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First Percent Percent
Average balances Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
---------------- -------- ----
Total assets $5,746,146 $5,758,081 $5,836,607 $5,927,884 $5,741,794 $4,729,079 $4,231,947 $4,206,411 0.08 $5,816,517 $4,731,512 22.93
Earning assets 5,022,647 5,027,805 5,100,834 5,178,069 4,982,614 4,134,730 3,695,409 3,630,759 0.80 5,081,764 4,114,606 23.51
Securities 979,052 1,001,547 1,026,948 1,002,519 924,179 819,351 754,515 698,863 5.94 1,002,450 799,899 25.32
Mortgage loans held for sale 27,443 31,832 26,004 19,925 25,248 37,056 32,318 22,347 8.69 26,337 29,271 (10.02)
Loans, net of unearned 3,954,606 3,937,142 3,897,028 3,868,747 3,865,615 3,213,853 2,845,260 2,804,618 2.30 3,914,679 3,185,288 22.90
Intangibles 297,978 300,725 302,181 303,599 304,388 227,606 190,362 190,787 (2.11) 301,104 228,629 31.70
-
Noninterest-bearing deposits $936,672 $896,856 $905,180 $949,317 $888,888 $660,415 $562,104 $549,514 5.38 $921,903 $666,147 38.39
Interest-bearing deposits 3,846,891 3,889,132 4,020,754 4,074,746 3,949,909 3,273,658 2,953,435 2,943,247 (2.61) 3,957,068 3,282,816 20.54
Total deposits 4,783,563 4,785,988 4,925,934 5,024,063 4,838,797 3,934,073 3,515,539 3,492,761 (1.14) 4,878,971 3,948,963 23.55
Borrowed funds 190,928 214,017 169,373 170,091 173,583 189,909 164,894 163,981 9.99 186,236 173,161 7.55
Shareholders' equity 709,811 697,103 686,794 673,047 665,513 553,772 506,225 501,634 6.66 691,802 557,209 24.15
Q4 2014 - As of
2014 2013 Q4 2013 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First Percent Percent
Balances at period end Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
---------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Total assets $5,804,526 $5,751,711 $5,826,020 $5,902,831 $5,746,270 $5,735,865 $4,242,401 $4,267,658 1.01 $5,804,526 $5,746,270 1.01
Earning assets 5,063,040 5,053,251 5,063,873 5,161,173 4,987,093 4,960,970 3,715,321 3,706,707 1.52 5,063,040 4,987,093 1.52
Securities 983,747 980,328 1,007,331 1,046,688 913,329 904,788 746,530 740,613 7.71 983,747 913,329 7.71
Mortgage loans held for sale 25,628 30,451 28,116 28,433 33,440 28,466 50,268 26,286 (23.36) 25,628 33,440 (23.36)
Loans acquired from M&F 577,347 636,628 694,115 746,047 813,451 891,420 - - (29.02) 577,347 813,451 (29.02)
Loans not acquired 3,267,486 3,165,492 3,096,286 2,947,836 2,885,802 2,794,116 2,683,017 2,594,438 13.23 3,267,486 2,885,802 13.23
Loans acquired and subject to loss share 143,041 155,319 167,129 173,545 181,765 195,996 201,494 213,872 (21.30) 143,041 181,765 (21.30)
Total loans 3,987,874 3,957,439 3,957,530 3,867,428 3,881,018 3,881,532 2,884,511 2,808,310 2.75 3,987,874 3,881,018 2.75
Intangibles 297,329 298,609 301,478 302,903 304,330 305,065 190,208 190,522 (2.30) 297,329 304,330 (2.30)
Noninterest-bearing deposits $919,872 $935,544 $902,766 $914,964 $856,020 $876,138 $560,965 $567,065 7.46 $919,872 $856,020 7.46
Interest-bearing deposits 3,918,546 3,828,126 3,983,965 4,089,820 3,985,892 3,958,618 2,944,193 2,988,110 (1.69) 3,918,546 3,985,892 (1.69)
Total deposits 4,838,418 4,763,670 4,886,731 5,004,784 4,841,912 4,834,756 3,505,158 3,555,175 (0.07) 4,838,418 4,841,912 (0.07)
Borrowed funds 188,825 227,664 189,831 168,700 171,875 177,168 195,789 164,063 9.86 188,825 171,875 9.86
Shareholders' equity 711,651 700,475 688,215 676,715 665,652 657,256 500,678 502,375 6.91 711,651 665,652 6.91
Market value per common share $28.93 $27.05 $29.07 $29.05 $31.46 $27.17 $24.34 $22.38 (8.04) $28.93 $31.46 (8.04)
Book value per common share 22.56 22.21 21.83 21.50 21.21 20.96 19.84 19.93 6.38 22.56 21.21 6.38
Tangible book value per common share 13.13 12.74 12.27 11.87 11.51 11.23 12.31 12.37 14.07 13.13 11.51 14.07
Shareholders' equity to assets (actual) 12.26% 12.18% 11.81% 11.46% 11.58% 11.46% 11.80% 11.77% 5.84 12.26% 11.58% 5.84
Tangible capital ratio (3) 7.52% 7.37% 7.00% 6.68% 6.64% 6.49% 7.66% 7.65% 13.31 7.52% 6.64% 13.31
Leverage ratio 9.53% 9.31% 8.91% 8.56% 8.68% 8.66% 9.83% 9.79% 9.79 9.53% 8.68% 9.79
Tier 1 risk-based capital ratio 12.45% 12.28% 11.82% 11.55% 11.41% 11.40% 12.87% 12.86% 9.11 12.45% 11.41% 9.11
Total risk-based capital ratio 13.54% 13.43% 12.96% 12.72% 12.58% 12.53% 14.14% 14.13% 7.63 13.54% 12.58% 7.63
RENASANT CORPORATION
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(Unaudited)
(Dollars in thousands, except per share data)
Q4 2014 - As of
2014 2013 Q4 2013 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First Percent Percent
Loans not acquired Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
------------------ ------- ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Commercial, financial, agricultural $418,501 $378,802 $365,262 $347,828 $341,600 $331,142 $307,718 $298,013 22.51 $418,501 $341,600 22.51
Lease financing 10,114 5,377 1,767 612 52 75 103 162 19,350.00 10,114 52 19,350.00
Real estate - construction 210,837 193,787 172,319 149,450 147,075 127,013 117,339 109,484 43.35 210,837 147,075 43.35
Real estate - 1-4 family mortgages 1,014,412 984,778 966,546 941,260 928,803 891,422 859,884 834,204 9.22 1,014,412 928,803 9.22
Real estate - commercial mortgages 1,538,950 1,527,680 1,516,372 1,441,403 1,404,617 1,383,680 1,335,402 1,295,213 9.56 1,538,950 1,404,617 9.56
Installment loans to individuals 74,672 75,068 74,020 67,283 63,655 60,784 62,571 57,362 17.31 74,672 63,655 17.31
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Loans, net of unearned $3,267,486 $3,165,492 $3,096,286 $2,947,836 $2,885,802 $2,794,116 $2,683,017 $2,594,438 13.23 $3,267,486 $2,885,802 13.23
Loans acquired and subject to loss share by category
----------------------------------------------------
Commercial, financial, agricultural $6,684 $7,698 $7,677 $8,283 $9,546 $10,280 $10,283 $10,157 (29.98) $6,684 $9,546 (29.98)
Lease financing - - - - - - - - - - - -
Real estate - construction - 1,648 1,648 1,648 1,648 1,648 1,648 1,648 (100.00) - 1,648 (100.00)
Real estate - 1-4 family mortgages 44,017 46,354 49,616 52,252 54,466 56,722 60,409 65,489 (19.18) 44,017 54,466 (19.18)
Real estate - commercial mortgages 92,304 99,580 108,166 111,337 116,077 127,315 129,120 136,541 (20.48) 92,304 116,077 (20.48)
Installment loans to individuals 36 39 22 25 28 31 34 37 28.57 36 28 28.57
--- --- ---
Loans, net of unearned $143,041 $155,319 $167,129 $173,545 $181,765 $195,996 $201,494 $213,872 (21.30) $143,041 $181,765 (21.30)
Loans Acquired from M&F
-----------------------
Commercial, financial, agricultural $58,098 $64,058 $74,887 $84,004 $117,817 $139,821 $ - $ - (50.69) $58,098 $117,817 (50.69)
Lease financing - - - - - - - - - - - -
Real estate - construction 1,224 1,631 2,610 4,803 12,713 23,556 - - (90.37) 1,224 12,713 (90.37)
Real estate - 1-4 family mortgages 177,931 190,447 205,126 217,748 224,965 244,079 - - (20.91) 177,931 224,965 (20.91)
Real estate - commercial mortgages 325,660 363,793 390,781 415,418 429,878 449,589 - - (24.24) 325,660 429,878 (24.24)
Installment loans to individuals 14,434 16,699 20,711 24,074 28,078 34,375 - - (48.59) 14,434 28,078 (48.59)
Loans, net of unearned $577,347 $636,628 $694,115 $746,047 $813,451 $891,420 $ - $ - (29.02) $577,347 $813,451 (29.02)
Asset quality data
------------------
Assets not acquired:
Nonaccrual loans $18,781 $19,070 $17,175 $18,365 $16,863 $19,995 $20,554 $25,382 11.37 $18,781 $16,863 11.37
Loans 90 past due or more 1,406 7,177 3,615 1,322 2,287 2,078 1,983 2,601 (38.52) 1,406 2,287 (38.52)
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Nonperforming loans 20,187 26,247 20,790 19,687 19,150 22,073 22,537 27,983 5.42 20,187 19,150 5.42
Other real estate owned 17,087 20,461 23,950 25,117 27,543 27,357 33,247 39,786 (37.96) 17,087 27,543 (37.96)
Nonperforming assets not acquired $37,274 $46,708 $44,740 $44,804 $46,693 $49,430 $55,784 $67,769 (20.17) $37,274 $46,693 (20.17)
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Assets acquired and subject to loss share:
Nonaccrual loans $24,172 $33,216 $41,425 $46,078 $49,194 $49,585 $47,281 $47,972 (50.86) $24,172 $49,194 (50.86)
Loans 90 past due or more 48 1,979 - 32 - 505 126 - - 48 - -
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Non-performing loans subject to loss share 24,220 35,195 41,425 46,110 49,194 50,090 47,407 47,972 (50.77) 24,220 49,194 (50.77)
Other real estate owned 6,368 4,033 7,472 10,218 12,942 16,580 27,835 35,095 (50.80) 6,368 12,942 (50.80)
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Nonperforming assets acquired and subject to loss share $30,588 $39,228 $48,897 $56,328 $62,136 $66,670 $75,242 $83,067 (50.77) $30,588 $62,136 (50.77)
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Assets acquired from M&F:
Nonaccrual loans $1,443 $1,991 $5,966 $6,393 $6,275 $224 $ - $ - (77.00) $1,443 $6,275 (77.00)
Loans 90 past due or more 9,259 8,375 5,057 1,922 1,899 8,568 - - 387.57 9,259 1,899 387.57
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Nonperforming loans 10,702 10,366 11,023 8,315 8,174 8,792 - - 30.93 10,702 8,174 30.93
Other real estate owned 11,017 9,565 10,381 12,406 12,402 13,223 - - (11.17) 11,017 12,402 (11.17)
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Nonperforming assets acquired from M&F $21,719 $19,931 $21,404 $20,721 $20,576 $22,015 $ - $ - 5.56 $21,719 $20,576 5.56
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Net loan charge-offs (recoveries) $3,330 $4,952 $2,195 $1,067 $584 $3,084 $2,471 $893 470.21 $11,544 $7,032 64.16
Allowance for loan losses 42,289 44,569 47,304 48,048 47,665 46,250 47,034 46,505 (11.28) 42,289 $47,665 (11.28)
Annualized net loan charge-offs / average loans 0.33% 0.50% 0.23% 0.11% 0.06% 0.38% 0.35% 0.13% 0.29% 0.22%
Nonperforming loans / total loans* 1.38% 1.81% 1.85% 1.92% 1.97% 2.09% 2.42% 2.70% 1.38% 1.97%
Nonperforming assets / total assets* 1.54% 1.84% 1.97% 2.06% 2.25% 2.41% 3.09% 3.53% 1.54% 2.25%
Allowance for loan losses / total loans* 1.06% 1.13% 1.20% 1.24% 1.23% 1.19% 1.63% 1.66% 1.06% 1.23%
Allowance for loan losses / nonperforming loans* 76.74% 62.07% 64.59% 64.83% 62.29% 57.13% 67.25% 61.23% 76.74% 62.29%
Nonperforming loans / total loans** 0.62% 0.83% 0.67% 0.67% 0.66% 0.79% 0.84% 1.08% 0.62% 0.66%
Nonperforming assets / total assets** 0.64% 0.81% 0.77% 0.76% 0.81% 0.86% 1.31% 1.59% 0.64% 0.81%
Allowance for loan losses / total loans** 1.29% 1.41% 1.53% 1.63% 1.65% 1.66% 1.75% 1.79% 1.29% 1.65%
Allowance for loan losses / nonperforming loans** 209.49% 169.81% 227.53% 244.06% 248.90% 209.53% 208.70% 166.19% 209.49% 248.90%
*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 Year Ending
2014 2013 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2014 2013
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Net income (GAAP) $15,597 $15,535 $14,853 $13,597 $11,260 $6,637 $8,019 $7,571 $59,582 $33,487
Amortization of intangibles, net of tax 902 947 1,019 1,026 1,069 548 229 242 3,889 2,088
Tangible net income (non-GAAP) $16,499 $16,482 $15,872 $14,623 $12,329 $7,185 $8,248 $7,813 $63,471 $35,575
Average shareholders' equity (GAAP) $709,811 $697,103 $686,794 $673,047 $665,513 $553,772 $506,225 $501,634 $691,802 $557,209
Intangibles 297,978 300,725 302,181 303,599 304,388 227,606 190,362 190,787 301,104 228,629
Average tangible shareholders' equity (non-GAAP) $411,833 $396,378 $384,613 $369,448 $361,125 $326,166 $315,863 $310,847 $390,698 $328,580
Average total assets (GAAP) $5,746,146 $5,758,081 $5,836,607 $5,927,884 $5,741,794 $4,729,079 $4,231,947 $4,206,411 $5,816,517 $4,731,512
Intangibles 297,978 300,725 302,181 303,599 304,388 227,606 190,362 190,787 301,104 228,629
Average tangible assets (non-GAAP) $5,448,168 $5,457,356 $5,534,426 $5,624,285 $5,437,406 $4,501,473 $4,041,585 $4,015,624 $5,515,413 $4,502,883
Actual total assets (GAAP) $5,804,526 $5,751,711 $5,826,020 $5,902,831 $5,746,270 $5,735,865 $4,242,401 $4,267,658 $5,804,526 $5,746,270
Intangibles 297,329 298,609 301,478 302,903 304,330 305,065 190,208 190,522 297,329 304,330
Actual tangible assets (non-GAAP) $5,507,197 $5,453,102 $5,524,542 $5,599,928 $5,441,940 $5,430,800 $4,052,193 $4,077,136 $5,507,197 $5,441,940
(1) Return on Average Equity
Return on (average) shareholders' equity (GAAP) 8.72% 8.84% 8.67% 8.19% 6.71% 4.75% 6.35% 6.12% 8.61% 6.01%
Effect of adjustment for intangible assets 7.18% 7.66% 7.88% 7.86% 6.83% 3.98% 4.12% 4.07% 7.63% 4.82%
Return on average tangible shareholders' equity (non-GAAP) 15.89% 16.50% 16.55% 16.05% 13.55% 8.74% 10.47% 10.19% 16.25% 10.83%
(2) Return on Average Assets
Return on (average) assets (GAAP) 1.08% 1.07% 1.02% 0.93% 0.78% 0.56% 0.76% 0.73% 1.02% 0.71%
Effect of adjustment for intangible assets 0.12% 0.13% 0.13% 0.12% 0.12% 0.08% 0.06% 0.06% 0.13% 0.08%
Return on average tangible assets (non-GAAP) 1.20% 1.20% 1.15% 1.05% 0.90% 0.63% 0.82% 0.79% 1.15% 0.79%
(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP) 12.26% 12.18% 11.81% 11.46% 11.58% 11.46% 11.80% 11.77% 12.26% 11.58%
Effect of adjustment for intangible assets 4.74% 4.81% 4.81% 4.79% 4.94% 4.97% 4.14% 4.12% 4.74% 4.94%
Tangible capital ratio (non-GAAP) 7.52% 7.37% 7.00% 6.68% 6.64% 6.49% 7.66% 7.65% 7.52% 6.64%
CALCULATION OF EFFICIENCY RATIO
-------------------------------
Interest income (FTE) $57,335 $58,098 $60,002 $57,811 $58,644 $46,083 $41,331 $40,371 $233,246 $186,429
Interest expense 5,580 5,886 6,108 6,206 6,408 5,890 5,541 5,564 23,780 23,403
Net Interest income (FTE) $51,755 $52,212 $53,894 $51,605 $52,236 $40,193 $35,790 $34,807 $209,466 $163,026
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Total noninterest income $19,971 $22,562 $19,471 $18,616 $18,341 $18,935 $17,317 $17,378 $80,620 $71,971
Securities gains (losses) - 375 - - - - - 54 375 54
Gain on acquisition - - - - - - - - - -
Total noninterest income $19,971 $22,187 $19,471 $18,616 $18,341 $18,935 $17,317 $17,324 $80,245 $71,917
Total Income (FTE) $71,726 $74,399 $73,365 $70,221 $70,577 $59,128 $53,107 $52,131 $289,711 $234,943
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Total noninterest expense $45,979 $48,175 $49,396 $47,645 $51,129 $46,613 $37,734 $37,600 $191,195 $173,076
Amortization of intangibles 1,327 1,381 1,427 1,471 1,508 724 314 323 5,606 2,869
Merger-related expenses 499 - - 195 1,879 3,763 385 - 694 6,027
Debt extinguishment penalty - - - - - - - - - -
Total noninterest expense $44,153 $46,794 $47,969 $45,979 $47,742 $42,126 # $37,035 $37,277 $184,895 $164,180
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(4) Efficiency Ratio 61.56% 62.90% 65.38% 65.48% 67.65% 71.25% 69.74% 71.51% 63.82% 69.88%
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SOURCE Renasant Corporation
