RENASANT CORPORATION TUPELO, Miss., April 28, 2015 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced financial results for the first quarter of 2015. Net income for the first quarter of 2015 was $15,240,000, or basic and diluted earnings per share ("EPS") of $0.48, as compared to $13,597,000, or basic and diluted EPS of $0.43, for the first quarter of 2014.
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For the first quarter of 2015, the Company's return on average assets and return on average equity were 1.06% and 8.59%, respectively, as compared to 0.93% and 8.19%, respectively, for the first quarter of 2014. The Company's 2015 first quarter return on average tangible assets and return on average tangible equity were 1.18% and 15.45%, respectively, as compared to 1.05% and 16.05%, respectively, for the first quarter of 2014.
In December 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 first quarter of 2015, the Company incurred merger expenses of approximately $478 thousand, or $0.01 in EPS, related to the Heritage merger.
"Our first quarter 2015 financial results reflect a strong start to what we expect to be a great year. These results are a continuation of superior returns on profitability metrics, as our return on tangible assets was 1.18%, and our return on tangible equity was 15.45%," said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "When compared to the same quarter in 2014, we increased net income and EPS by 12% by growing revenue while at the same time holding noninterest expense flat. As we look forward, we believe we are well positioned to improve profitability and earnings growth during 2015."
Total assets as of March 31, 2015, were approximately $5.88 billion, as compared to $5.90 billion as of March 31, 2014, and $5.81 billion on a linked quarter basis.
Total deposits were $4.94 billion at March 31, 2015, as compared to $5.0 billion at March 31, 2014, and $4.84 billion at December 31, 2014. The Company's cost of funds was 43 basis points for the first quarter of 2015, as compared to 48 basis points for the same quarter in 2014. The Company's noninterest-bearing deposits averaged approximately $932 million, or 19.1% of average deposits, for the first quarter of 2015, as compared to $949 million, or 18.9% of average deposits, for the first quarter of 2014.
Total loans, including loans acquired in either the First M&F Corporation ("First M&F") merger or in FDIC-assisted transactions (collectively referred to as "acquired loans"), were approximately $3.95 billion at March 31, 2015, as compared to $3.87 billion at March 31, 2014, and $3.99 billion on a linked quarter basis.
Excluding acquired loans, loans grew 11% to $3.27 billion at March 31, 2015, as compared to $2.95 billion at March 31, 2014. On a linked quarter basis, non-acquired loans were $3.27 billion at December 31, 2014.
At March 31, 2015, the Company's Tier 1 leverage capital ratio was 9.75%, its Tier 1 risk-based capital ratio was 12.45%, and its total risk-based capital ratio was 13.50%. The Company's common equity Tier 1 capital ratio was 10.34% at March 31, 2015. 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 7.65% as of March 31, 2015.
Net interest income was $48.8 million for the first quarter of 2015, as compared to approximately $50.0 million for the first quarter of 2014. Net interest margin was 4.03% for the first quarter of 2015, as compared to 4.04% for the first quarter of 2014. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans was $590,000 in the first quarter of 2015 and increased net interest margin 5 basis points compared to $2.6 million and 21 basis point increase in net interest margin in the same period in 2014.
Noninterest income was $21.9 million for the first quarter of 2015, as compared to approximately $18.6 million for the first quarter of 2014, and $20.0 million for the fourth quarter of 2014. The Company's mortgage revenue increased 95% on a linked quarter basis due to increased production as a result of a decrease in rates and originator hires made in the latter part of 2014.
Noninterest expense was $47.4 million for the first quarter of 2015, as compared to approximately $47.6 million for the first quarter of 2014.
At March 31, 2015, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $48.2 million, and total other real estate owned ("OREO") was $31.7 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 $29.3 million and $15.0 million, respectively at March 31, 2015.
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 $18.9 million as of March 31, 2015, as compared to $19.7 million as of March 31, 2014, and $20.2 million at December 31, 2014. Nonperforming loans as a percentage of total loans were 0.58% as of March 31, 2015, as compared to 0.67% as of March 31, 2014, and 0.62% as of December 31, 2014.
Annualized net charge-offs as a percentage of average loans remained the same at 0.11% for the first quarter of 2015, as compared to the first quarter of 2014. The Company recorded a provision for loan losses of $1.1 million for the first quarter of 2015, as compared to $1.5 million for the first quarter of 2014.
The allowance for loan losses totaled $42.3 million at March 31, 2015, as compared to $48.0 million as of March 31, 2014, and $42.3 million as of December 31, 2014. The allowance for loan losses as a percentage of loans was 1.29% as of March 31, 2015, as compared to 1.63% as of March 31, 2014, and 1.29% as of December 31, 2014.
The Company's coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 223.68% as of March 31, 2015, as compared to 244.06% as of March 31, 2014, and 209.49% as of December 31, 2014. Loans 30 to 89 days past due as a percentage of total loans were 0.37% at March 31, 2015, as compared to 0.25% at March 31, 2014, and 0.32% at December 31, 2014.
OREO was $16.7 million as of March 31, 2015, as compared to $25.1 million as of March 31, 2014, and $17.1 million at December 31, 2014. During the first quarter of 2015, the Company experienced a significant reduction in costs associated with OREO as OREO expense decreased approximately 68.7% as compared to the first quarter of 2014.
"We see many positives on the horizon, specifically, healthy commercial loan pipelines which support our annual loan growth goals with a robust mortgage loan pipeline--both of which should drive continued revenue growth," stated McGraw. "Concurrently, we are working towards a successful merger and conversion with Heritage, which after receiving the required regulatory approval during the first quarter of 2015, we anticipate completing during the third quarter of 2015."
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, April 29, 2015.
The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst150429.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation First Quarter 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 10063653 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until May 13, 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 $5.9 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."
Contacts: Media 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)
Q1 2015 - For the Three Months Ending
2015 2014 Q4 2014 March 31,
---- ---- ---------
First Fourth Third Second First Percent Percent
Statement of earnings Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance
--------------------- --------
Interest income - taxable equivalent basis $55,910 $57,335 $58,098 $60,002 $57,811 (2.49) $55,910 $57,811 (3.29)
Interest income $54,166 $55,596 $56,358 $58,277 $56,177 (2.57) $54,166 $56,177 (3.58)
Interest expense 5,324 5,580 5,886 6,108 6,206 (4.59) 5,324 6,206 (14.21)
Net interest income 48,842 50,016 50,472 52,169 49,971 (2.35) 48,842 49,971 (2.26)
Provision for loan losses 1,075 1,050 2,217 1,450 1,450 2.38 1,075 1,450 (25.86)
Net interest income after provision 47,767 48,966 48,255 50,719 48,521 (2.45) 47,767 48,521 (1.55)
Service charges on deposit accounts 5,933 6,526 6,747 6,193 5,916 (9.09) 5,933 5,916 0.29
Fees and commissions on loans and deposits 4,894 5,150 6,237 5,515 4,972 (4.97) 4,894 4,972 (1.57)
Insurance commissions and fees 1,967 1,973 2,270 2,088 1,863 (0.30) 1,967 1,863 5.58
Wealth management revenue 2,190 2,144 2,197 2,170 2,144 2.15 2,190 2,144 2.15
Securities gains (losses) - - 375 - - - - - -
Gain on sale of mortgage loans 4,633 2,369 2,635 2,006 1,585 95.57 4,633 1,585 192.30
Gain on acquisition - - - - - - - - -
Other 2,287 1,809 2,102 1,499 2,136 26.42 2,287 2,136 7.07
Total noninterest income 21,904 19,971 22,563 19,471 18,616 9.68 21,904 18,616 17.66
Salaries and employee benefits 28,260 27,301 29,569 29,810 28,428 3.51 28,260 28,428 (0.59)
Data processing 3,181 2,949 2,906 2,850 2,695 7.87 3,181 2,695 18.03
Occupancy and equipment 5,559 5,146 5,353 4,906 4,847 8.03 5,559 4,847 14.69
Other real estate 532 723 1,101 1,068 1,701 (26.42) 532 1,701 (68.72)
Amortization of intangibles 1,275 1,327 1,381 1,427 1,471 (3.92) 1,275 1,471 (13.32)
Merger-related expenses 478 499 - - 195 (4.21) 478 195 145.13
Debt extinguishment penalty - - - - - - - - -
Other 8,129 8,034 7,865 9,335 8,308 1.18 8,129 8,308 (2.15)
Total noninterest expense 47,414 45,979 48,175 49,396 47,645 3.12 47,414 47,645 (0.48)
Income before income taxes 22,257 22,958 22,643 20,794 19,492 (3.05) 22,257 19,492 14.19
Income taxes 7,017 7,361 7,108 5,941 5,895 (4.67) 7,017 5,895 19.03
Net income $15,240 $15,597 $15,535 $14,853 $13,597 (2.29) $15,240 $13,597 12.08
Basic earnings per share $0.48 $0.49 $0.49 $0.47 $0.43 (2.04) $0.48 $0.43 11.63
Diluted earnings per share 0.48 0.49 0.49 0.47 0.43 (2.04) 0.48 0.43 11.63
Average basic shares outstanding 31,576,275 31,537,278 31,526,423 31,496,737 31,436,148 0.12 31,576,275 31,436,148 0.45
Average diluted shares outstanding 31,815,710 31,781,734 31,718,529 31,698,198 31,668,362 0.11 31,815,710 31,668,362 0.47
Common shares outstanding 31,604,937 31,545,145 31,533,703 31,519,641 31,480,395 0.19 31,604,937 31,480,395 0.40
Cash dividend per common share $0.17 $0.17 $0.17 $0.17 $0.17 - $0.17 $0.17 -
Performance ratios
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Return on average shareholders' equity 8.59% 8.72% 8.84% 8.67% 8.19% 8.59% 8.19%
Return on average tangible shareholders' equity (1) 15.45% 15.90% 16.50% 16.55% 16.05% 15.45% 16.05%
Return on average assets 1.06% 1.08% 1.07% 1.02% 0.93% 1.06% 0.93%
Return on average tangible assets (2) 1.18% 1.20% 1.20% 1.15% 1.05% 1.18% 1.05%
Net interest margin (FTE) 4.03% 4.09% 4.12% 4.24% 4.04% 4.03% 4.04%
Yield on earning assets (FTE) 4.45% 4.53% 4.58% 4.72% 4.53% 4.45% 4.53%
Cost of funding 0.43% 0.45% 0.47% 0.48% 0.48% 0.43% 0.48%
Average earning assets to average assets 87.49% 87.41% 87.32% 87.39% 87.35% 87.49% 87.35%
Average loans to average deposits 81.44% 82.67% 82.26% 79.11% 77.00% 81.44% 77.00%
Noninterest income (less securities gains/
losses) to average assets 1.53% 1.38% 1.53% 1.34% 1.27% 1.53% 1.27%
Noninterest expense (less debt prepayment penalties/
merger-related expenses) to average
assets 3.27% 3.14% 3.32% 3.39% 3.25% 3.27% 3.25%
Net overhead ratio 1.74% 1.76% 1.79% 2.06% 1.97% 1.74% 1.97%
Efficiency ratio (FTE) (4) 62.99% 61.56% 62.90% 65.38% 65.48% 62.99% 65.48%
RENASANT CORPORATION
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(Unaudited)
(Dollars in thousands, except per share data)
Q1 2015 - For the Three Months Ending
2015 2014 Q4 2014 March 31,
---- ---- ---------
First Fourth Third Second First Percent Percent
Average balances Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance
---------------- -------- ----
Total assets $5,821,758 $5,746,146 $5,758,083 $5,836,607 $5,927,884 1.32 $5,821,758 $5,927,884 (1.79)
Earning assets 5,093,224 5,022,647 5,027,805 5,100,833 5,178,069 1.41 5,093,224 5,178,069 (1.64)
Securities 989,743 979,052 1,001,548 1,026,948 1,002,519 1.09 989,743 1,002,519 (1.27)
Mortgage loans held for sale 50,918 27,443 31,832 26,004 19,925 85.54 50,918 19,925 155.55
Loans, net of unearned 3,969,244 3,954,606 3,937,142 3,897,027 3,868,747 0.37 3,969,244 3,868,747 2.60
Intangibles 296,682 297,978 300,725 302,181 303,599 (0.43) 296,682 303,599 (2.28)
Noninterest-bearing deposits $932,011 $936,672 $896,856 $905,180 $949,317 (0.50) $932,011 $949,317 (1.82)
Interest-bearing deposits 3,941,863 3,846,891 3,889,133 4,020,754 4,074,745 2.47 3,941,863 4,074,745 (3.26)
Total deposits 4,873,874 4,783,563 4,785,988 4,925,934 5,024,063 1.89 4,873,874 5,024,063 (2.99)
Borrowed funds 168,758 190,928 214,017 169,373 170,091 (11.61) 168,758 170,091 (0.78)
Shareholders' equity 719,687 709,780 697,103 686,794 673,046 1.40 719,687 673,046 6.93
Q1 2015 - As of
2015 2014 Q4 2014 March 31,
---- ---- ---------
First Fourth Third Second First Percent Percent
Balances at period end Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance
---------------------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Total assets $5,882,098 $5,805,129 $5,751,711 $5,826,020 $5,902,831 1.33 $5,882,098 $5,902,831 (0.35)
Earning assets 5,168,497 5,063,039 5,053,252 5,063,873 5,161,173 2.08 5,168,497 5,161,173 0.14
Securities 1,016,393 983,747 980,328 1,007,331 1,046,688 3.32 1,016,393 1,046,688 (2.89)
Mortgage loans held for sale 102,780 25,628 30,451 28,116 28,433 301.05 102,780 28,433 261.48
Loans acquired from M&F 553,574 577,347 636,628 694,115 746,047 (4.12) 553,574 746,047 (25.80)
Loans not acquired 3,274,314 3,267,486 3,165,492 3,096,286 2,947,836 0.21 3,274,314 2,947,836 11.08
Loans acquired and subject to loss share 125,773 143,041 155,319 167,129 173,545 (12.07) 125,773 173,545 (27.53)
Total loans 3,953,661 3,987,874 3,957,439 3,957,530 3,867,428 (0.86) 3,953,661 3,867,428 2.23
Intangibles 296,053 297,330 298,609 301,478 302,903 (0.43) 296,053 302,903 (2.26)
Noninterest-bearing deposits $959,351 $919,872 $935,544 $902,766 $914,964 4.29 $959,351 $914,964 4.85
Interest-bearing deposits 3,983,419 3,918,546 3,828,126 3,983,965 4,089,820 1.66 3,983,419 4,089,820 (2.60)
Total deposits 4,942,770 4,838,418 4,763,670 4,886,731 5,004,784 2.16 4,942,770 5,004,784 (1.24)
Borrowed funds 162,313 188,825 227,664 189,830 168,700 (14.04) 162,313 168,700 (3.79)
Shareholders' equity 723,196 711,651 700,475 688,215 676,715 1.62 723,196 676,715 6.87
Market value per common share $30.05 $28.93 $27.05 $29.07 $29.05 3.87 $30.05 $29.05 3.44
Book value per common share 22.88 22.56 22.21 21.83 21.50 1.43 22.88 21.50 6.42
Tangible book value per common share 13.52 13.13 12.74 12.27 11.87 2.90 13.52 11.87 13.90
Shareholders' equity to assets (actual) 12.29% 12.26% 12.18% 11.81% 11.46% 0.29 12.29% 11.46% 7.24
Tangible capital ratio (3) 7.65% 7.52% 7.37% 7.00% 6.68% 1.65 7.65% 6.68% 14.52
Leverage ratio 9.75% 9.53% 9.31% 8.91% 8.56% 2.31 9.75% 8.56% 13.90
Common equity tier 1 capital ratio 10.34% N/A N/A N/A N/A N/A 10.34% N/A N/A
Tier 1 risk-based capital ratio 12.45% 12.45% 12.28% 11.82% 11.54% - 12.45% 11.54% 7.89
Total risk-based capital ratio 13.50% 13.54% 13.43% 12.96% 12.70% (0.30) 13.50% 12.70% 6.30
RENASANT CORPORATION
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(Unaudited)
(Dollars in thousands, except per share data)
Q1 2015 - As of
2015 2014 Q4 2014 March 31,
---- ---- ---------
First Fourth Third Second First Percent Percent
Loans not acquired Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance
------------------ ------- ------- ------- ------- ------- -------- ---- ---- --------
Commercial, financial, agricultural $418,752 $418,501 $378,802 $365,262 $347,828 0.06 $418,752 $347,828 20.39
Lease financing 11,560 10,114 5,377 1,767 612 14.30 11,560 612 1,788.89
Real estate - construction 200,966 210,837 193,787 172,319 149,450 (4.68) 200,966 149,450 34.47
Real estate - 1-4 family mortgages 1,025,264 1,014,412 984,778 966,546 941,260 1.07 1,025,264 941,260 8.92
Real estate - commercial mortgages 1,542,706 1,538,950 1,527,680 1,516,372 1,441,403 0.24 1,542,706 1,441,403 7.03
Installment loans to individuals 75,066 74,672 75,068 74,020 67,283 0.53 75,066 67,283 11.57
------
Loans, net of unearned $3,274,314 $3,267,486 $3,165,492 $3,096,286 $2,947,836 0.21 $3,274,314 $2,947,836 11.08
Loans acquired and subject to loss share by category
----------------------------------------------------
Commercial, financial, agricultural $3,917 $6,684 $7,699 $7,677 $8,283 (41.40) $3,917 $8,283 (52.71)
Lease financing - - - - - - - - -
Real estate - construction - - 1,648 1,648 1,648 - - 1,648 (100.00)
Real estate - 1-4 family mortgages 42,758 44,017 46,354 49,616 52,252 (2.86) 42,758 52,252 (18.17)
Real estate - commercial mortgages 79,064 92,304 99,579 108,166 111,337 (14.34) 79,064 111,337 (28.99)
Installment loans to individuals 34 36 39 22 25 (5.56) 34 25 36.00
--- --- ---
Loans, net of unearned $125,773 $143,041 $155,319 $167,129 $173,545 (12.07) $125,773 $173,545 (27.53)
Loans Acquired from M&F
-----------------------
Commercial, financial, agricultural $52,119 $58,098 $64,058 $74,887 $84,004 (10.29) $52,119 $84,004 (37.96)
Lease financing - - - - - - - - -
Real estate - construction 483 1,224 1,631 2,610 4,803 (60.54) 483 4,803 (89.94)
Real estate - 1-4 family mortgages 171,433 177,931 190,447 205,126 217,748 (3.65) 171,433 217,748 (21.27)
Real estate - commercial mortgages 317,224 325,660 363,793 390,781 415,418 (2.59) 317,224 415,418 (23.64)
Installment loans to individuals 12,315 14,434 16,699 20,711 24,074 (14.68) 12,315 24,074 (48.85)
Loans, net of unearned $553,574 $577,347 $636,628 $694,115 $746,047 (4.12) $553,574 $746,047 (25.80)
Asset quality data
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Assets not acquired:
Nonaccrual loans $17,719 $18,781 $19,070 $17,175 $18,365 (5.65) $17,719 $18,365 (3.52)
Loans 90 past due or more 1,193 1,406 7,177 3,615 1,322 (15.15) 1,193 1,322 (9.76)
----- ----- ----- ----- ----- ----- -----
Nonperforming loans 18,912 20,187 26,247 20,790 19,687 (6.32) 18,912 19,687 (3.94)
Other real estate owned 16,735 17,087 20,461 23,950 25,117 (2.06) 16,735 25,117 (33.37)
Nonperforming assets not acquired $35,647 $37,274 $46,708 $44,740 $44,804 (4.36) $35,647 $44,804 (20.44)
=======
Assets acquired and subject to loss share:
Nonaccrual loans $18,040 $24,172 $33,216 $41,425 $46,078 (25.37) $18,040 $46,078 (60.85)
Loans 90 past due or more - 48 1,979 - 32 (100.00) - 32 (100.00)
--- --- ----- --- --- --- ---
Non-performing loans subject to loss share 18,040 24,220 35,195 41,425 46,110 (25.52) 18,040 46,110 (60.88)
Other real estate owned 4,325 6,368 4,033 7,472 10,218 (32.08) 4,325 10,218 (57.67)
-----
Nonperforming assets acquired and subject to loss share $22,365 $30,588 $39,228 $48,897 $56,328 (26.88) $22,365 $56,328 (60.30)
======= ======= ======= ======= ======= ======= =======
Assets acquired from M&F:
Nonaccrual loans $1,627 $1,443 $1,991 $5,966 $6,393 12.75 $1,627 $6,393 (74.55)
Loans 90 past due or more 9,636 9,259 8,375 5,057 1,922 4.07 9,636 1,922 401.35
----- ----- ----- ----- ----- ----- -----
Nonperforming loans 11,263 10,702 10,366 11,023 8,315 5.24 11,263 8,315 35.45
Other real estate owned 10,626 11,017 9,565 10,381 12,406 (3.55) 10,626 12,406 (14.35)
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Nonperforming assets acquired from M&F $21,889 $21,719 $19,931 $21,404 $20,721 0.78 $21,889 $20,721 5.64
======= ======= ======= ======= ======= ======= =======
Net loan charge-offs (recoveries) $1,062 $3,330 $4,952 $2,194 $1,067 (68.11) $1,062 $1,067 (0.47)
Allowance for loan losses 42,302 42,289 44,569 47,304 48,048 0.03 42,302 $48,048 (11.96)
Annualized net loan charge-offs / average loans 0.11% 0.33% 0.50% 0.23% 0.11% 0.11% 0.11%
Nonperforming loans / total loans* 1.22% 1.38% 1.81% 1.85% 1.92% 1.22% 1.92%
Nonperforming assets / total assets* 1.36% 1.54% 1.84% 1.97% 2.06% 1.36% 2.06%
Allowance for loan losses / total loans* 1.07% 1.06% 1.13% 1.20% 1.24% 1.07% 1.24%
Allowance for loan losses / nonperforming loans* 87.74% 76.74% 62.07% 64.59% 64.83% 87.74% 64.83%
Nonperforming loans / total loans** 0.58% 0.62% 0.83% 0.67% 0.67% 0.58% 0.67%
Nonperforming assets / total assets** 0.61% 0.64% 0.81% 0.77% 0.76% 0.61% 0.76%
Allowance for loan losses / total loans** 1.29% 1.29% 1.41% 1.53% 1.63% 1.29% 1.63%
Allowance for loan losses / nonperforming loans** 223.68% 209.49% 169.81% 227.53% 244.06% 223.68% 244.06%
*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
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For the Three Months Ending
2015 2014 March 31,
---- ---- ---------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter 2015 2014
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Net income (GAAP) $15,240 $15,597 $15,535 $14,853 $13,597 $15,240 $13,597
Amortization of intangibles, net of tax 873 902 947 1,019 1,026 873 1,026
Tangible net income (non-GAAP) $16,113 $16,499 $16,482 $15,872 $14,623 $16,113 $14,623
Average shareholders' equity (GAAP) $719,687 $709,780 $697,103 $686,794 $673,046 $719,687 $673,046
Intangibles 296,682 297,978 300,725 302,181 303,599 296,682 303,599
Average tangible shareholders' equity (non-GAAP) $423,005 $411,802 $396,378 $384,613 $369,447 $423,005 $369,447
Average total assets (GAAP) $5,821,758 $5,746,146 $5,758,083 $5,836,607 $5,927,884 $5,821,758 $5,927,884
Intangibles 296,682 297,978 300,725 302,181 303,599 296,682 303,599
Average tangible assets (non-GAAP) $5,525,076 $5,448,168 $5,457,358 $5,534,426 $5,624,285 $5,525,076 $5,624,285
Actual total assets (GAAP) $5,882,098 $5,805,129 $5,751,711 $5,826,020 $5,902,831 $5,882,098 $5,902,831
Intangibles 296,053 297,330 298,609 301,478 302,903 296,053 302,903
Actual tangible assets (non-GAAP) $5,586,045 $5,507,799 $5,453,102 $5,524,542 $5,599,928 $5,586,045 $5,599,928
(1) Return on Average Equity
Return on (average) shareholders' equity (GAAP) 8.59% 8.72% 8.84% 8.67% 8.19% 8.59% 8.19%
Effect of adjustment for intangible assets 6.86% 7.18% 7.66% 7.88% 7.86% 6.86% 7.86%
Return on average tangible shareholders' equity (non-GAAP) 15.45% 15.90% 16.50% 16.55% 16.05% 15.45% 16.05%
(2) Return on Average Assets
Return on (average) assets (GAAP) 1.06% 1.08% 1.07% 1.02% 0.93% 1.06% 0.93%
Effect of adjustment for intangible assets 0.12% 0.12% 0.13% 0.13% 0.12% 0.12% 0.12%
Return on average tangible assets (non-GAAP) 1.18% 1.20% 1.20% 1.15% 1.05% 1.18% 1.05%
(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP) 12.29% 12.26% 12.18% 11.81% 11.46% 12.29% 11.46%
Effect of adjustment for intangible assets 4.65% 4.74% 4.81% 4.81% 4.79% 4.65% 4.79%
Tangible capital ratio (non-GAAP) 7.65% 7.52% 7.37% 7.00% 6.68% 7.65% 6.68%
CALCULATION OF EFFICIENCY RATIO
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Interest income (FTE) $55,910 $57,335 $58,098 $60,002 $57,811 $55,910 $57,811
Interest expense 5,324 5,580 5,886 6,108 6,206 5,324 6,206
Net Interest income (FTE) $50,586 $51,755 $52,212 $53,894 $51,605 $50,586 $51,605
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Total noninterest income $21,904 $19,971 $22,563 $19,471 $18,616 $21,904 $18,616
Securities gains (losses) - - 375 - - - -
Gain on acquisition - - - - - - -
Total noninterest income $21,904 $19,971 $22,188 $19,471 $18,616 $21,904 $18,616
Total Income (FTE) $72,490 $71,726 $74,400 $73,365 $70,221 $72,490 $70,221
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Total noninterest expense $47,414 $45,979 $48,175 $49,396 $47,645 $47,414 $47,645
Amortization of intangibles 1,275 1,327 1,381 1,427 1,471 1,275 1,471
Merger-related expenses 478 499 - - 195 478 195
Debt extinguishment penalty - - - - - - -
Total noninterest expense $45,661 $44,153 $46,794 $47,969 $45,979 $45,661 $45,979
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(4) Efficiency Ratio 62.99% 61.56% 62.90% 65.38% 65.48% 62.99% 65.48%
Logo - http://photos.prnewswire.com/prnh/20130207/CL56161LOGO
SOURCE Renasant Corporation
