RENASANT CORPORATION TUPELO, Miss., Jan. 19, 2016 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced earnings results for the fourth quarter and year ended December 31, 2015. Net income for the fourth quarter of 2015 was approximately $21.2 million, up 35.67%, as compared to $15.6 million for the fourth quarter of 2014. Basic and diluted earnings per share ("EPS") were $0.53 and $0.52, respectively, for the fourth quarter of 2015, as compared to basic and diluted EPS of $0.49 for the fourth quarter of 2014. Excluding the impact of after-tax merger expenses incurred during each quarter, basic and diluted EPS were $0.55 for the fourth quarter of 2015, as compared to basic and diluted EPS of $0.50 for the fourth quarter of 2014.
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Net income for 2015 was $68.0 million, as compared to $59.6 million for 2014. Basic and diluted EPS were$1.89 and $1.88, respectively, for both 2015 and 2014. Excluding the impact of after-tax merger expenses incurred during each year, basic and diluted EPS were $2.10 and $2.08, respectively, for 2015, as compared to basic and diluted EPS of $1.90 and $1.89, respectively, for 2014.
On July 1, 2015, the Company completed the acquisition of Heritage Financial Group, Inc. ("Heritage"), a bank holding company headquartered in Albany, Georgia, and the parent of HeritageBank of the South, a Georgia savings bank. The Company's balance sheet and results of operations as of and for the year ended December 31, 2015, include the impact of Heritage's operations since the acquisition date. At the acquisition date, Heritage had $2.02 billion in total assets, $1.11 billion in loans, and $1.37 billion in deposits. The assets acquired and liabilities assumed are recorded at estimated fair value and are subject to change pending finalization of all valuations.
"Our financial results for the fourth quarter of 2015 represent a strong finish to a great year. The results include our successful completion of the Heritage acquisition and 24.58% annualized linked quarter legacy loan growth," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "Excluding merger expenses on an after-tax basis, our diluted EPS of $0.55 per share represents some of the highest reported quarterly earnings for the Company and was driven by the strong performance of our legacy company coupled with the successful conversion of Heritage's operations. Furthermore, the continued sustainability of this profitability is reflected in our return on average assets, excluding merger expenses on an after-tax basis, of 1.12% for the quarter, marking the seventh consecutive quarter we've achieved greater than 1.00% return on average assets. As we look to 2016, we believe we are well positioned to continue to improve on profitability and earnings growth, which in turn will generate shareholder value."
The following table presents the Company's profitability metrics for the fourth quarter of 2015 including and excluding the impact of after-tax merger expenses from the Heritage acquisition:
As Excluding
Reported Merger
Expenses
--------
Return on average
assets 1.06% 1.12%
Return on average
tangible assets 1.19% 1.25%
Return on average
equity 8.06% 8.48%
Return on average
tangible equity 15.84% 16.61%
The following table presents the Company's profitability metrics for the year ending December 31, 2015, including and excluding the impact of after-tax merger expenses from the Heritage acquisition:
As Excluding
Reported Merger
Expenses
--------
Return on average
assets 0.99% 1.10%
Return on average
tangible assets 1.11% 1.23%
Return on average
equity 7.72% 8.57%
Return on average
tangible equity 14.50% 16.00%
Total assets at December 31, 2015, were approximately $7.94 billion, as compared to $5.81 billion at December 31, 2014.
Total loans, including loans acquired in the Heritage and First M&F Corporation ("First M&F") acquisitions or in FDIC-assisted transactions (collectively referred to as "acquired loans"), increased 35.75% to approximately $5.41 billion at December 31, 2015, as compared to $3.99 billion at December 31, 2014. Excluding acquired loans, loans grew 17.23% to $3.83 billion at December 31, 2015, as compared to $3.27 billion at December 31, 2014.
Total deposits were $6.22 billion at December 31, 2015, as compared to $4.84 billion at December 31, 2014. The increase in deposits is primarily attributable to the acquisition of Heritage. The Company's noninterest-bearing deposits averaged approximately $1.32 billion, or 21.36% of average deposits, for the fourth quarter of 2015, as compared to $937 million, or 19.58% of average deposits, for the fourth quarter of 2014. The Company's cost of funds was 31 basis points for the fourth quarter of 2015, as compared to 45 basis points for the same quarter in 2014.
At December 31, 2015, the Company's Tier 1 leverage capital ratio was 9.18%, its Common Equity Tier 1 risk-based capital ratio was 9.98%, its Tier 1 risk-based capital ratio was 11.50%, and its total risk-based capital ratio was 12.30%. The Company's regulatory capital ratios continue to be in excess of the regulatory minimums required to be classified as "well-capitalized." At December 31, 2015, our tangible common equity ratio was 7.56%.
Net interest income was $72.4 million for the fourth quarter of 2015, as compared to $50.0 million for the fourth quarter of 2014. Net interest margin was 4.33% for the fourth quarter of 2015, as compared to 4.09% for the fourth quarter of 2014. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans increased net interest margin 21 basis points in the fourth quarter of 2015, as compared to 11 basis points in the same period in 2014.
Net interest income was $241.6 million for the year ended December 31, 2015, as compared to $202.6 million for the year ended December 31, 2014. Net interest margin was 4.17% for 2015, as compared to 4.12% for the prior year. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans increased net interest margin 14 basis points for all of 2015, as compared to 17 basis points for the prior year.
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 2015, noninterest income increased to $31.5 million, as compared to $20.0 million for the fourth quarter of 2014. Noninterest income increased to $108.4 million during 2015, as compared to $80.6 million during 2014. The Company's growth in noninterest income for both the fourth quarter and full year of 2015, as compared to the comparable periods in the prior year, is primarily attributable to the Heritage acquisition and growth in our mortgage lending.
Noninterest expense was $70.9 million for the fourth quarter of 2015, and $245.5 for the year 2015, as compared to $46.0 million for the fourth quarter of 2014, and $191.2 million for the year 2014. The increase in noninterest expense, when compared to the comparable periods in 2014, was primarily due to the operating expenses of the acquired Heritage operations as well as merger expenses incurred in connection with the Heritage acquisition. The Company recorded merger expenses of approximately $1.92 million and $499 thousand during the fourth quarter of 2015 and 2014, respectively. The Company recorded merger expenses of approximately $11.6 million and $694 thousand during 2015 and 2014, respectively.
The Company recorded a provision for loan losses of $1.8 million for the fourth quarter of 2015, as compared to $1.1 million for the fourth quarter of 2014. For the fourth quarter of 2015, net charge-offs were $1.4 million, as compared to $3.3 million in net charge-offs for the same period in 2014. Annualized net charge-offs as a percentage of average loans were 0.10% for the fourth quarter of 2015, as compared to 0.33% for the same quarter in 2014.
The allowance for loan losses as a percentage of total loans was 0.78% at December 31, 2015, as compared to 1.06% at December 31, 2014. The allowance for loan losses as a percentage of non-acquired loans was 1.11% at December 31, 2015, as compared to 1.29% at December 31, 2014.
At December 31, 2015, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $45.4 million, or 0.84% of total loans, and total other real estate owned ("OREO") was $35.4 million, as compared to total nonperforming loans of $55.1 million, or 1.38% of total loans, and total OREO of $34.5 million at December 31, 2014. The Company's nonperforming loans and OREO that were acquired through the Heritage and First M&F acquisitions or in connection with FDIC-assisted transactions (collectively referred to as "acquired nonperforming assets") were $30.0 million and $22.4 million, respectively, at December 31, 2015, as compared to $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 23.85% to $28.4 million at December 31, 2015, as compared to $37.3 million at December 31, 2014.
Nonperforming loans were $15.4 million, or 0.40% of total non-acquired loans, at December 31, 2015, as compared to $20.2 million, or 0.62% of total non-acquired loans, at December 31, 2014, representing a 23.73% decrease. Early stage delinquencies, or loans 30-to-89 days past due, as a percentage of total loans were 0.20% at December 31, 2015, as compared to 0.32% at December 31, 2014.
OREO was $13.0 million at December 31, 2015, as compared to $17.1 million at December 31, 2014, a 23.99% decrease. The Company continues to proactively market the properties held in OREO as it sold approximately $5.87 million of OREO during 2015, with $1.10 million in sales occurring during the fourth 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, January 20, 2016.
The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst160120. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Fourth 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 10079062 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 3, 2016.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 111-year-old financial services institution. Renasant has assets of approximately $7.9 billion and operates more than 170 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama, Florida 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)
Q4 2015 - For the Year Ending
2015 2014 Q4 2014 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First Percent Percent
Statement of earnings Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance
---------------------
Interest income - taxable equivalent basis $79,679 $76,242 $58,516 $55,910 $57,335 $58,098 $60,002 $57,811 38.97 $270,347 $233,246 15.91
Interest income $77,788 $74,300 $56,769 $54,166 $55,597 $56,358 $58,277 $56,177 39.91 $263,023 $226,409 16.17
Interest expense 5,364 5,620 5,099 5,324 5,580 5,886 6,108 6,206 (3.87) 21,407 23,780 (9.98)
Net interest income 72,424 68,680 51,670 48,842 50,017 50,472 52,169 49,971 44.80 241,616 202,629 19.24
Provision for loan losses 1,750 750 1,175 1,075 1,050 2,217 1,450 1,450 66.67 4,750 6,167 (22.98)
Net interest income after provision 70,674 67,930 50,495 47,767 48,967 48,255 50,719 48,521 44.33 236,866 196,462 20.57
Service charges on deposit accounts 8,261 8,151 6,522 6,335 6,905 7,107 6,533 6,211 19.64 29,269 26,756 9.39
Fees and commissions on loans and deposits 6,118 5,704 4,954 4,492 4,771 5,877 5,175 4,677 28.23 21,268 20,500 3.75
Insurance commissions and fees 1,956 2,381 2,119 1,967 1,973 2,270 2,088 1,863 (0.86) 8,423 8,194 2.79
Wealth management revenue 2,658 2,871 2,248 2,190 2,144 2,197 2,170 2,144 23.97 9,967 8,655 15.16
Securities gains (losses) - - 96 - - 375 - - - 96 375 (74.40)
Gain on sale of mortgage loans 10,020 10,578 5,407 4,633 2,368 2,635 2,006 1,585 323.14 30,638 8,594 256.50
Gain on acquisition - - - - - - - - - - - -
Other 2,478 2,432 1,571 2,287 1,809 2,102 1,499 2,136 36.98 8,768 7,546 16.19
Total noninterest income 31,491 32,117 22,917 21,904 19,970 22,563 19,471 18,616 57.69 108,429 80,620 34.49
Salaries and employee benefits 43,409 43,048 30,394 28,260 27,301 29,569 29,810 28,428 59.00 145,111 115,108 26.07
Data processing 3,940 3,773 3,152 3,181 2,949 2,906 2,850 2,695 33.60 14,046 11,400 23.21
Occupancy and equipment 8,171 7,733 5,524 5,559 5,146 5,353 4,906 4,847 58.78 26,987 20,252 33.26
Other real estate 698 861 954 532 723 1,101 1,068 1,701 (3.46) 3,045 4,593 (33.70)
Amortization of intangibles 1,751 1,803 1,239 1,275 1,327 1,381 1,427 1,471 31.95 6,068 5,606 8.24
Merger-related expenses 1,923 7,746 1,467 478 499 - - 195 285.37 11,614 694 1,573.49
Debt extinguishment penalty - - - - - - - - - - - -
Other 10,964 11,121 8,446 8,129 8,034 7,865 9,335 8,308 36.47 38,660 33,542 15.26
Total noninterest expense 70,856 76,085 51,176 47,414 45,979 48,175 49,396 47,645 54.11 245,531 191,195 28.42
Income before income taxes 31,309 23,962 22,236 22,257 22,958 22,643 20,794 19,492 36.38 99,764 85,887 16.16
Income taxes 10,149 7,742 6,842 7,017 7,361 7,108 5,941 5,895 37.88 31,750 26,305 20.70
Net income $21,160 $16,220 $15,394 $15,240 $15,597 $15,535 $14,853 $13,597 35.67 $68,014 $59,582 14.15
==========
Basic earnings per share $0.53 $0.40 $0.49 $0.48 $0.49 $0.49 $0.47 $0.43 8.16 $1.89 $1.89 -
Diluted earnings per share 0.52 0.40 0.48 0.48 0.49 0.49 0.47 0.43 6.12 1.88 1.88 -
Average basic shares outstanding 40,276,441 40,265,941 31,626,059 31,576,275 31,537,278 31,526,423 31,496,737 31,436,148 27.71 35,971,877 31,499,498 14.20
Average diluted shares outstanding 40,539,151 40,518,413 31,865,172 31,815,710 31,781,734 31,718,529 31,698,198 31,668,362 27.55 36,227,439 31,759,647 14.07
Common shares outstanding 40,293,291 40,268,455 31,644,706 31,604,937 31,545,145 31,533,703 31,519,641 31,480,395 27.73 40,293,291 31,545,145 27.73
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
------------------
Return on average shareholders' equity 8.06% 6.28% 8.42% 8.59% 8.72% 8.84% 8.67% 8.19% 7.72% 8.61%
Return on average tangible shareholders'
equity (1) 15.84% 12.20% 14.89% 15.45% 15.90% 16.50% 16.55% 16.05% 14.50% 16.25%
Return on average assets 1.06% 0.81% 1.06% 1.06% 1.08% 1.07% 1.02% 0.93% 0.99% 1.02%
Return on average tangible assets (2) 1.19% 0.93% 1.17% 1.18% 1.20% 1.20% 1.15% 1.05% 1.11% 1.15%
Net interest margin (FTE) 4.33% 4.09% 4.17% 4.03% 4.09% 4.12% 4.24% 4.04% 4.17% 4.12%
Yield on earning assets (FTE) 4.65% 4.42% 4.57% 4.45% 4.53% 4.58% 4.72% 4.53% 4.52% 4.59%
Cost of funding 0.31% 0.33% 0.40% 0.43% 0.45% 0.47% 0.48% 0.48% 0.36% 0.47%
Average earning assets to average assets 86.02% 86.57% 87.79% 87.49% 87.41% 87.32% 87.39% 87.35% 86.88% 87.37%
Average loans to average deposits 86.22% 83.63% 81.93% 81.44% 82.67% 82.26% 79.11% 77.00% 83.51% 80.24%
Noninterest income (less securities gains/
losses) to average assets 1.58% 1.61% 1.57% 1.53% 1.38% 1.53% 1.34% 1.27% 1.57% 1.38%
Noninterest expense (less debt prepayment penalties/
merger-related expenses) to average assets 3.46% 3.43% 3.41% 3.27% 3.14% 3.32% 3.39% 3.25% 3.40% 3.28%
Net overhead ratio 1.88% 1.82% 1.84% 1.74% 1.76% 1.79% 2.06% 1.97% 1.83% 1.90%
Efficiency ratio (FTE) (4) 63.50% 64.76% 63.58% 62.99% 61.56% 62.90% 65.38% 65.48% 63.77% 63.82%
RENASANT CORPORATION
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(Unaudited)
(Dollars in thousands, except per share data)
Q4 2015 - For the Year Ending
2015 2014 Q4 2014 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First Percent Percent
Average balances Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance
----------------
Total assets $7,906,661 $7,905,538 $5,847,539 $5,821,758 $5,746,146 $5,758,083 $5,836,607 $5,927,884 37.60 $6,878,921 $5,816,517 18.27
Earning assets 6,801,388 6,842,452 5,133,567 5,093,224 5,022,647 5,027,805 5,100,833 5,178,069 35.41 5,976,098 5,081,764 17.60
Securities 1,120,236 1,143,577 999,962 989,743 979,052 1,001,548 1,026,948 1,002,519 14.42 1,065,319 1,002,450 6.27
Mortgage loans held for sale 268,096 398,480 87,435 50,918 27,443 31,832 26,004 19,925 876.92 202,368 26,337 668.38
Loans, net of unearned 5,341,943 5,223,273 3,978,514 3,969,244 3,954,606 3,937,142 3,897,027 3,868,747 35.08 4,633,635 3,914,679 18.37
Intangibles 481,747 456,811 295,441 296,682 297,978 300,725 302,181 303,599 61.67 383,380 301,104 27.32
Noninterest-bearing deposits $1,323,468 $1,272,714 $969,770 $932,011 $936,672 $896,856 $905,180 $949,317 41.29 $1,125,970 $921,903 22.14
Interest-bearing deposits 4,872,432 4,972,717 3,886,199 3,941,863 3,846,891 3,889,133 4,020,754 4,074,745 26.66 4,422,371 3,957,068 11.76
Total deposits 6,195,900 6,245,431 4,855,969 4,873,874 4,783,563 4,785,989 4,925,934 5,024,062 29.52 5,548,341 4,878,971 13.72
Borrowed funds 568,548 556,269 204,884 168,758 190,928 214,017 169,373 170,091 197.78 376,208 186,236 102.01
Shareholders' equity 1,041,460 1,023,912 733,158 719,687 709,780 697,103 686,794 673,046 46.73 880,831 691,802 27.32
Q4 2015 - As of
2015 2014 Q4 2014 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 2015 2014 Variance
---------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Total assets $7,935,702 $7,918,732 $5,899,190 $5,881,849 $5,805,129 $5,751,711 $5,826,020 $5,902,831 36.70 $7,935,702 $5,805,129 36.70
Earning assets 6,778,485 6,810,285 5,186,419 5,168,497 5,063,039 5,053,252 5,063,873 5,161,173 33.88 6,778,485 5,063,039 33.88
Securities 1,105,205 1,139,553 965,290 1,016,394 983,747 980,328 1,007,331 1,046,688 12.35 1,105,205 983,747 12.35
Mortgage loans held for sale 225,254 317,681 108,023 102,780 25,628 30,451 28,116 28,433 778.94 225,254 25,628 778.94
Loans not acquired 3,830,434 3,607,005 3,407,925 3,274,314 3,267,486 3,165,492 3,096,286 2,947,836 17.23 3,830,434 3,267,486 17.23
Loans acquired and covered by FDIC loss-
share agreements 93,142 100,839 121,626 125,773 143,041 155,319 167,129 173,545 (34.88) 93,142 143,041 (34.88)
Loans acquired and not covered by FDIC
loss-share agreements 1,489,886 1,570,116 507,653 553,574 577,347 636,628 694,115 746,047 158.06 1,489,886 577,347 158.06
Total loans 5,413,462 5,277,960 4,037,204 3,953,661 3,987,874 3,957,439 3,957,530 3,867,428 35.75 5,413,462 3,987,874 35.75
Intangibles 480,813 482,599 294,808 296,053 297,330 298,609 301,478 302,903 61.71 480,813 297,330 61.71
Noninterest-bearing deposits $1,278,337 $1,303,884 $972,672 $959,351 $919,872 $935,544 $902,766 $914,964 38.97 $1,278,337 $919,872 38.97
Interest-bearing deposits 4,940,265 4,930,677 3,917,772 3,983,418 3,918,546 3,828,126 3,983,965 4,089,820 26.07 4,940,265 3,918,546 26.07
Total deposits 6,218,602 6,234,561 4,890,444 4,942,769 4,838,418 4,763,670 4,886,731 5,004,784 28.53 6,218,602 4,838,418 28.53
Borrowed funds 570,496 551,740 219,089 162,313 188,825 227,664 189,830 168,700 202.13 570,496 188,825 202.13
Shareholders' equity 1,044,587 1,032,699 730,976 723,196 711,651 700,475 688,215 676,715 46.78 1,044,587 711,651 46.78
Market value per common share $34.41 $32.85 $32.60 $30.05 $28.93 $27.05 $29.07 $29.05 18.94 $34.41 $28.93 18.94
Book value per common share 25.92 25.65 23.10 22.88 22.56 22.21 21.83 21.50 14.89 25.92 22.56 14.89
Tangible book value per common share 13.99 13.66 13.78 13.52 13.13 12.74 12.27 11.87 6.55 13.99 13.13 6.55
Shareholders' equity to assets (actual) 13.16% 13.04% 12.39% 12.30% 12.26% 12.18% 11.81% 11.46% 13.16% 12.26%
Tangible capital ratio (3) 7.56% 7.40% 7.78% 7.65% 7.52% 7.37% 7.00% 6.68% 7.56% 7.52%
Leverage ratio 9.18% 8.95% 9.89% 9.74% 9.53% 9.31% 8.91% 8.56% 9.18% 9.53%
Common equity tier 1 capital ratio 9.98% 9.92% 10.45% 10.35% N/A N/A N/A N/A 9.98% N/A
Tier 1 risk-based capital ratio 11.50% 11.46% 12.52% 12.47% 12.45% 12.28% 11.82% 11.54% 11.50% 12.45%
Total risk-based capital ratio 12.30% 12.27% 13.55% 13.51% 13.54% 13.43% 12.96% 12.70% 12.30% 13.54%
RENASANT CORPORATION
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(Unaudited)
(Dollars in thousands, except per share data)
Q4 2015 - As of
2015 2014 Q4 2014 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First Percent Percent
Loans not acquired by category Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance
------------------------------ ------- ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Commercial, financial, agricultural $485,407 $450,688 $437,181 $418,752 $418,501 $378,802 $365,262 $347,828 15.99 $485,407 $418,501 15.99
Lease financing 34,815 24,698 17,633 11,560 10,114 5,377 1,767 612 244.23 34,815 10,114 244.23
Real estate - construction 291,701 268,805 212,071 200,966 210,837 193,787 172,319 149,449 38.35 291,701 210,837 38.35
Real estate - 1-4 family mortgages 1,204,228 1,128,556 1,073,816 1,025,264 1,014,412 984,778 966,546 941,260 18.71 1,204,228 1,014,412 18.71
Real estate - commercial mortgages 1,729,049 1,653,534 1,589,969 1,542,706 1,538,950 1,527,680 1,516,372 1,441,404 12.35 1,729,049 1,538,950 12.35
Installment loans to individuals 85,234 80,724 77,255 75,066 74,672 75,068 74,020 67,283 14.14 85,234 74,672 14.14
Loans, net of unearned $3,830,434 $3,607,005 $3,407,925 $3,274,314 $3,267,486 $3,165,492 $3,096,286 $2,947,836 17.23 $3,830,434 $3,267,486 17.23
==========
Loans acquired and covered by FDIC loss-share agreements
--------------------------------------------------------
Commercial, financial, agricultural $2,406 $2,467 $3,726 $3,917 $6,684 $7,699 $7,677 $8,283 (64.00) $2,406 $6,684 (64.00)
Lease financing - - - - - - - - - - - -
Real estate - construction 130 137 - - - 1,648 1,648 1,648 - 130 - -
Real estate - 1-4 family mortgages 45,988 48,779 40,333 42,758 44,017 46,354 49,616 52,252 4.48 45,988 44,017 4.48
Real estate - commercial mortgages 44,550 49,382 77,536 79,064 92,304 99,579 108,166 111,337 (51.74) 44,550 92,304 (51.74)
Installment loans to individuals 68 74 31 34 36 39 22 25 88.89 68 36 88.89
Loans, net of unearned $93,142 $100,839 $121,626 $125,773 $143,041 $155,319 $167,129 $173,545 (34.88) $93,142 $143,041 (34.88)
=======
Loans acquired and not covered by FDIC loss-share agreements
------------------------------------------------------------
Commercial, financial, agricultural $149,024 $167,966 $39,652 $52,119 $58,098 $64,058 $74,887 $84,005 156.50 $149,024 $58,098 156.50
Lease financing - - - - - - - - - - - -
Real estate - construction 65,833 70,428 505 483 1,224 1,631 2,610 4,803 5,278.51 65,833 1,224 5,278.51
Real estate - 1-4 family mortgages 485,107 485,170 161,765 171,433 177,931 190,447 205,126 217,748 172.64 485,107 177,931 172.64
Real estate - commercial mortgages 760,131 813,973 295,484 317,224 325,660 363,793 390,781 415,417 133.41 760,131 325,660 133.41
Installment loans to individuals 29,791 32,579 10,247 12,315 14,434 16,699 20,711 24,074 106.39 29,791 14,434 106.39
Loans, net of unearned $1,489,886 $1,570,116 $507,653 $553,574 $577,347 $636,628 $694,115 $746,047 158.06 $1,489,886 $577,347 158.06
==========
Asset quality data
------------------
Assets not acquired:
Nonaccrual loans $13,645 $14,522 $15,514 $17,719 $18,781 $19,070 $17,175 $18,365 (27.35) $13,645 $18,781 (27.35)
Loans 90 past due or more 1,751 647 5,647 1,193 1,406 7,177 3,615 1,322 24.54 1,751 1,406 24.54
----- --- ----- ----- ----- ----- ----- ----- ----- -----
Nonperforming loans 15,396 15,169 21,161 18,912 20,187 26,247 20,790 19,687 (23.73) 15,396 20,187 (23.73)
Other real estate owned 12,987 13,936 14,967 16,735 17,087 20,461 23,950 25,117 (23.99) 12,987 17,087 (23.99)
Nonperforming assets not acquired $28,383 $29,105 $36,128 $35,647 $37,274 $46,708 $44,740 $44,804 (23.85) $28,383 $37,274 (23.85)
======= ======= ======= =======
Assets acquired and subject to loss share:
Nonaccrual loans $3,319 $3,270 $19,487 $18,040 $24,172 $33,216 $41,425 # $46,078 (86.27) $3,319 $24,172 (86.27)
Loans 90 past due or more 3,609 4,143 - - 48 1,979 - # 32 7,418.75 3,609 48 7,418.75
----- ----- --- --- --- ----- --- --- ----- ---
Nonperforming loans subject to loss share 6,928 7,413 19,487 18,040 24,220 35,195 41,425 # 46,110 (71.40) 6,928 24,220 (71.40)
Other real estate owned 2,818 3,183 3,853 4,325 6,368 4,033 7,472 # 10,218 (55.75) 2,818 6,368 (55.75)
Nonperforming assets acquired and subject to loss share $9,746 $10,596 $23,340 $22,365 $30,588 $39,228 $48,897 # $56,328 (68.14) $9,746 $30,588 (68.14)
====== ======= ======= ======= ======= ======= ======= ======= ====== =======
Assets acquired and not subject to loss share:
Nonaccrual loans $12,070 $15,796 $1,085 $1,627 $1,443 $1,991 $5,966 # $6,393 736.45 $12,070 $1,443 736.45
Loans 90 past due or more 11,033 8,824 2,523 9,636 9,259 8,375 5,057 # 1,922 19.16 11,033 9,259 19.16
------ ----- ----- ----- ----- ----- ----- ----- ------ -----
Nonperforming loans 23,103 24,620 3,608 11,263 10,702 10,366 11,023 # 8,315 115.88 23,103 10,702 115.88
Other real estate owned 19,597 19,215 8,244 10,626 11,017 9,565 10,381 # 12,406 77.88 19,597 11,017 77.88
------
Nonperforming assets acquired $42,700 $43,835 $11,852 $21,889 $21,719 $19,931 $21,404 # $20,721 96.60 $42,700 $21,719 96.60
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Net loan charge-offs (recoveries) $1,364 $588 $1,588 $1,062 $3,330 $4,952 $2,194 $1,067 (59.04) $4,602 $11,543 (60.13)
Allowance for loan losses 42,437 42,051 41,888 42,302 42,289 44,569 47,304 48,048 0.35 42,437 $42,289 0.35
Annualized net loan charge-offs / average loans 0.10% 0.04% 0.16% 0.11% 0.33% 0.50% 0.23% 0.11% 0.10% 0.29%
Nonperforming loans / total loans* 0.84% 0.89% 1.10% 1.22% 1.38% 1.81% 1.85% 1.92% 0.84% 1.38%
Nonperforming assets / total assets* 1.02% 1.05% 1.21% 1.36% 1.54% 1.84% 1.97% 2.06% 1.02% 1.54%
Allowance for loan losses / total loans* 0.78% 0.80% 1.04% 1.07% 1.06% 1.13% 1.20% 1.24% 0.78% 1.06%
Allowance for loan losses / nonperforming loans* 93.42% 89.09% 94.65% 87.74% 76.74% 62.07% 64.59% 64.83% 93.42% 76.74%
Nonperforming loans / total loans** 0.40% 0.42% 0.62% 0.58% 0.62% 0.83% 0.67% 0.67% 0.40% 0.62%
Nonperforming assets / total assets** 0.36% 0.37% 0.61% 0.61% 0.64% 0.81% 0.77% 0.76% 0.36% 0.64%
Allowance for loan losses / total loans** 1.11% 1.17% 1.23% 1.29% 1.29% 1.41% 1.53% 1.63% 1.11% 1.29%
Allowance for loan losses / nonperforming loans** 275.64% 277.22% 197.95% 223.68% 209.49% 169.81% 227.53% 244.06% 275.64% 209.49%
*Based on all assets (including acquired assets)
**Excludes all assets acquired
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
RECONCILIATION OF GAAP TO NON-GAAP
----------------------------------
For the Year Ending
2015 2014 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2015 2014
------- ------- ------- ------- ------- ------- ------- ------- ---- ----
Net income (GAAP) $21,160 $16,220 $15,394 $15,240 $15,597 $15,535 $14,853 $13,597 $68,014 $59,582
Amortization of intangibles, net of
tax 1,183 1,220 858 873 902 947 1,019 1,026 4,137 3,889
-----
Tangible net income (non-GAAP) $22,343 $17,440 $16,252 $16,113 $16,499 $16,482 $15,872 $14,623 $72,151 $63,471
Average shareholders' equity
(GAAP) $1,041,460 $1,023,912 $733,158 $719,687 $709,780 $697,103 $686,794 $673,046 $880,831 $691,802
Intangibles 481,747 456,811 295,441 296,682 297,978 300,725 302,181 303,599 383,380 301,104
-------
Average tangible shareholders'
equity (non-GAAP) $559,713 $567,101 $437,717 $423,005 $411,802 $396,378 $384,613 $369,447 $497,451 $390,698
Average total assets (GAAP) $7,906,661 $7,905,538 $5,847,539 $5,821,758 $5,746,146 $5,758,083 $5,836,607 $5,927,884 $6,878,921 $5,816,517
Intangibles 481,747 456,811 295,441 296,682 297,978 300,725 302,181 303,599 383,380 301,104
-------
Average tangible assets (non-
GAAP) $7,424,914 $7,448,727 $5,552,098 $5,525,076 $5,448,168 $5,457,358 $5,534,426 $5,624,285 $6,495,541 $5,515,413
Actual shareholders' equity
(GAAP) $1,044,587 $1,032,699 $730,976 $723,196 $711,651 $700,475 $688,215 $676,715 $1,044,587 $711,651
Intangibles 480,813 482,599 294,808 296,053 297,330 298,609 301,478 302,903 480,813 297,329
-------
Actual tangible shareholders'
equity (non-GAAP) $563,774 $550,100 $436,168 $427,143 $414,321 $401,866 $386,737 $373,812 $563,774 $414,322
Actual total assets (GAAP) $7,935,702 $7,918,732 $5,899,190 $5,881,849 $5,805,129 $5,751,711 $5,826,020 $5,902,831 $7,935,702 $5,805,129
Intangibles 480,813 482,599 294,808 296,053 297,330 298,609 301,478 302,903 480,813 297,329
-------
Actual tangible assets (non-
GAAP) $7,454,889 $7,436,133 $5,604,382 $5,585,796 $5,507,799 $5,453,102 $5,524,542 $5,599,928 $7,454,889 $5,507,800
(1) Return on Average Equity
Return on (average)
shareholders' equity (GAAP) 8.06% 6.28% 8.42% 8.59% 8.72% 8.84% 8.67% 8.19% 7.72% 8.61%
Effect of adjustment for intangible
assets 7.78% 5.92% 6.47% 6.86% 7.18% 7.66% 7.88% 7.86% 6.78% 7.63%
Return on average tangible
shareholders' equity (non-
GAAP) 15.84% 12.20% 14.89% 15.45% 15.90% 16.50% 16.55% 16.05% 14.50% 16.25%
(2) Return on Average Assets
Return on (average) assets
(GAAP) 1.06% 0.81% 1.06% 1.06% 1.08% 1.07% 1.02% 0.93% 0.99% 1.02%
Effect of adjustment for intangible
assets 0.13% 0.11% 0.12% 0.12% 0.12% 0.13% 0.13% 0.12% 0.12% 0.13%
Return on average tangible
assets (non-GAAP) 1.19% 0.93% 1.17% 1.18% 1.20% 1.20% 1.15% 1.05% 1.11% 1.15%
(3) Shareholder Equity Ratio
Shareholders' equity to
(actual) assets (GAAP) 13.16% 13.04% 12.39% 12.30% 12.26% 12.18% 11.81% 11.46% 13.16% 12.26%
Effect of adjustment for intangible
assets 5.60% 5.64% 4.61% 4.65% 4.74% 4.81% 4.81% 4.79% 5.60% 4.74%
Tangible capital ratio (non-
GAAP) 7.56% 7.40% 7.78% 7.65% 7.52% 7.37% 7.00% 6.68% 7.56% 7.52%
CALCULATION OF EFFICIENCY RATIO
-------------------------------
Interest income (FTE) $79,679 $76,242 $58,516 $55,910 $57,335 $58,098 $60,002 $57,811 $270,347 $233,246
Interest expense 5,364 5,620 5,099 5,324 5,580 5,886 6,108 6,206 21,407 23,780
-----
Net Interest income (FTE) $74,315 $70,622 $53,417 $50,586 $51,755 $52,212 $53,894 $51,605 $248,940 $209,466
------- ------- ------- ------- ------- ------- ------- ------- -------- --------
Total noninterest income $31,491 $32,117 $22,917 $21,904 $19,970 $22,563 $19,471 $18,616 $108,429 $80,620
Securities gains (losses) - - 96 - - 375 - - 96 375
Gain on acquisition - - - - - - - - - -
-------------------
Total noninterest income $31,491 $32,117 $22,821 $21,904 $19,970 $22,188 $19,471 $18,616 $108,333 $80,245
Total Income (FTE) $105,806 $102,739 $76,238 $72,490 $71,725 $74,400 $73,365 $70,221 $357,273 $289,711
======== ======== ======= ======= ======= ======= ======= ======= ======== ========
Total noninterest expense $70,856 $76,085 $51,176 $47,414 $45,979 $48,175 $49,396 $47,645 $245,531 $191,195
Amortization of intangibles 1,751 1,803 1,239 1,275 1,327 1,381 1,427 1,471 6,068 5,606
Merger-related expenses 1,923 7,746 1,467 478 499 - - 195 11,614 694
Debt extinguishment penalty - - - - - - - - - -
---------------------------
Total noninterest expense $67,182 $66,536 $48,470 $45,661 $44,153 $46,794 # $47,969 $45,979 $227,849 $184,895
======= ======= ======= ======= ======= ======= ======= ======= ======== ========
(4) Efficiency Ratio 63.50% 64.76% 63.58% 62.99% 61.56% 62.90% 65.38% 65.48% 63.77% 63.82%
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
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SOURCE Renasant Corporation
