RENASANT CORPORATION TUPELO, Miss., July 21, 2015 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced financial results for the second quarter of 2015. Net income for the second quarter of 2015 was $15,394,000, or basic and diluted earnings per share ("EPS") of $0.49 and $0.48, respectively, as compared to $14,853,000, or basic and diluted EPS of $0.47, for the second quarter of 2014.
http://photos.prnewswire.com/prnvar/20130207/CL56161LOGO
On July 1, 2015, the Company acquired by merger 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 combined company has approximately $7.77 billion in total assets with 171 banking, mortgage, wealth management, investment and insurance offices throughout Mississippi, Tennessee, Alabama, Georgia and Florida. During the second quarter of 2015, the Company incurred pre-tax merger expenses related to the Heritage merger of approximately $1,467,000, or $906,000 on an after-tax basis, which equated to a reduction of $0.03 in diluted EPS for the second quarter of 2015.
For the second quarter of 2015, the Company's return on average assets and return on average equity were 1.06% and 8.42%, respectively, as compared to 1.02% and 8.67%, respectively, for the second quarter of 2014. The Company's 2015 second quarter return on average tangible assets and return on average tangible shareholders' equity were 1.17% and 14.89%, respectively, as compared to 1.15% and 16.55%, respectively, for the second quarter of 2014.
"We are pleased with our second quarter financial results highlighted by 16.37% annualized linked quarter non-acquired loan growth and strong revenue growth driven from our mortgage operations. Focusing on profitability for the quarter, our diluted earnings per share of $0.48 continues to represent some of the highest quarterly operating earnings in the 111-year history of our company excluding quarters which recognized one-time gains associated with acquisitions," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "The sustainability of this profitability is reflected in our return on average assets of 1.06% for the quarter, marking the fifth consecutive quarter we've achieved greater than 1.00% return on average assets."
Total assets as of June 30, 2015, were approximately $5.90 billion, as compared to $5.88 billion on a linked quarter basis and $5.81 billion as of December 31, 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 $4.04 billion at June 30, 2015, as compared to $3.95 billion on a linked quarter basis and $3.99 billion as of December 31, 2014.
Excluding acquired loans, loans grew 4.30%, or 8.67% annualized, to $3.41 billion at June 30, 2015, as compared to $3.27 billion at December 31, 2014 and increased 4.08%, or 16.37% annualized, from $3.27 billion at March 31, 2015.
Total deposits were $4.89 billion at June 30, 2015, as compared to $4.84 billion at December 31, 2014, and $4.89 billion at June 30, 2014. The Company's cost of funds was 40 basis points for the second quarter of 2015, as compared to 48 basis points for the same quarter in 2014. The Company's noninterest-bearing deposits averaged approximately $970 million, or 19.97% of average total deposits, for the second quarter of 2015, as compared to $937 million, or 19.58% for the fourth quarter of 2014, and $905 million, or 18.38% for the second quarter of 2014.
At June 30, 2015, the Company's Tier 1 leverage capital ratio was 9.90%, its common equity Tier 1 capital ratio was 10.44%, its Tier 1 risk-based capital ratio was 12.52%, and its total risk-based capital ratio was 13.54%. The Company's regulatory capital ratios continued to be in excess of the regulatory minimums required to be classified as "well-capitalized."
"Looking at our capital levels, our tangible common equity ratio stands at 7.78% at June 30, 2015, which, coupled with our strong regulatory capital ratios, will continue to support future balance sheet growth whether organic or the result of additional external opportunity," said McGraw.
Net interest income was $51.67 million for the second quarter of 2015, as compared to $52.17 million for the second quarter of 2014. Net interest margin was 4.17% for the second quarter of 2015, compared to 4.24% for the second quarter of 2014. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans was $3.60 million in the second quarter of 2015, which increased net interest margin 28 basis points, compared to $3.52 million, which is a 28 basis point increase in net interest margin for the same period in 2014.
Noninterest income increased 17.70% to $22.92 million for the second quarter of 2015, as compared to $19.47 million for the second quarter of 2014. The increase in noninterest income was primarily attributable to growth in the Company's mortgage operations and resulting mortgage income.
Noninterest expense was $51.18 million for the second quarter of 2015, as compared to approximately $49.40 million for the second quarter of 2014. The increase in the Company's noninterest expense was primarily attributable to an increase in salary and employee benefits as well as merger related expenses. The increase in salaries and employee benefits was due to higher levels of commissions paid in our mortgage banking division.
At June 30, 2015, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $44.26 million, and total other real estate owned ("OREO") was $27.06 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 $23.10 million and $12.10 million, respectively at June 30, 2015.
Since the acquired nonperforming assets were recorded at fair value at the time of acquisition and/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.
The Company's nonperforming loans were $21.16 million as of June 30, 2015, as compared to $20.19 million at December 31, 2014. Nonperforming loans as a percentage of total loans were 0.62% as of June 30, 2015 and December 31, 2014. The increase in nonperforming loans at June 30, 2015, was primarily due to a $2.8 million matured loan which was carried as 90 days past due at June 30, 2015 but has since been resolved through pay-off.
Annualized net charge-offs as a percentage of average loans were 0.16% for the second quarter of 2015, as compared to 0.23% for the same period in 2014. The Company recorded a provision for loan losses of $1.18 million for the second quarter of 2015, as compared to $1.45 million for the second quarter of 2014.
The allowance for loan losses totaled $41.89 million at June 30, 2015, as compared to $42.29 million as of December 31, 2014. The allowance for loan losses as a percentage of loans was 1.23% as of June 30, 2015, as compared to 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 197.95% as of June 30, 2015, as compared to 209.49% as of December 31, 2014. Loans 30 to 89 days past due as a percentage of total loans were 0.19% at June 30, 2015, as compared to 0.32% at December 31, 2014.
OREO was $14.97 million as of June 30, 2015, as compared to $17.09 million at December 31, 2014.
"We continue to see many opportunities on the horizon, specifically strong 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. "With the addition of the Heritage team, its customers and operations, we continue to be well positioned to accelerate profitability and earnings growth, which in turn, we believe will generate shareholder value."
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, July 22, 2015.
The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst150722. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Second 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 10069391 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until August 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 $7.77 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 "average tangible shareholders' equity"). 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
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q2 2015 - For the Six Months Ending
2015 2014 Q2 2014 June 30,
---- ---- --------
Second First Fourth Third Second First Percent Percent
Statement of earnings Quarter Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance
--------------------- --------
Interest income - taxable equivalent basis $58,516 $55,910 $57,335 $58,098 $60,002 $57,811 (2.48) $114,426 $117,813 (2.87)
Interest income $56,769 $54,166 $55,596 $56,358 $58,277 $56,177 (2.59) $110,935 $114,454 (3.07)
Interest expense 5,099 5,324 5,580 5,886 6,108 6,206 (16.52) 10,423 12,314 (15.36)
Net interest income 51,670 48,842 50,016 50,472 52,169 49,971 (0.96) 100,512 102,140 (1.59)
Provision for loan losses 1,175 1,075 1,050 2,217 1,450 1,450 (18.97) 2,250 2,900 (22.41)
Net interest income after provision 50,495 47,767 48,966 48,255 50,719 48,521 (0.44) 98,262 99,240 (0.99)
Service charges on deposit accounts 6,092 5,933 6,526 6,747 6,193 5,916 (1.63) 12,025 12,109 (0.69)
Fees and commissions on loans and deposits 5,384 4,894 5,150 6,237 5,515 4,972 (2.38) 10,278 10,487 (1.99)
Insurance commissions and fees 2,119 1,967 1,973 2,270 2,088 1,863 1.48 4,086 3,951 3.42
Wealth management revenue 2,248 2,190 2,144 2,197 2,170 2,144 3.59 4,438 4,314 2.87
Securities gains (losses) 96 - - 375 - - - 96 - -
Gain on sale of mortgage loans 5,407 4,633 2,369 2,635 2,006 1,585 169.54 10,040 3,591 179.59
Gain on acquisition - - - - - - - - - -
Other 1,571 2,287 1,809 2,102 1,499 2,136 4.80 3,858 3,635 6.13
Total noninterest income 22,917 21,904 19,971 22,563 19,471 18,616 17.70 44,821 38,087 17.68
Salaries and employee benefits 30,394 28,260 27,301 29,569 29,810 28,428 1.96 58,654 58,238 0.71
Data processing 3,152 3,181 2,949 2,906 2,850 2,695 10.60 6,333 5,545 14.21
Occupancy and equipment 5,524 5,559 5,146 5,353 4,906 4,847 12.60 11,083 9,753 13.64
Other real estate 954 532 723 1,101 1,068 1,701 (10.67) 1,486 2,769 (46.33)
Amortization of intangibles 1,239 1,275 1,327 1,381 1,427 1,471 (13.17) 2,514 2,898 (13.25)
Merger-related expenses 1,467 478 499 - - 195 - 1,945 195 897.44
Debt extinguishment penalty - - - - - - - - - -
Other 8,446 8,129 8,034 7,865 9,335 8,308 (9.52) 16,575 17,643 (6.05)
Total noninterest expense 51,176 47,414 45,979 48,175 49,396 47,645 3.60 98,590 97,041 1.60
Income before income taxes 22,236 22,257 22,958 22,643 20,794 19,492 6.93 44,493 40,286 10.44
Income taxes 6,842 7,017 7,361 7,108 5,941 5,895 15.17 13,859 11,836 17.09
Net income $15,394 $15,240 $15,597 $15,535 $14,853 $13,597 3.64 $30,634 $28,450 7.68
Basic earnings per share $0.49 $0.48 $0.49 $0.49 $0.47 $0.43 4.26 $0.97 $0.90 7.78
Diluted earnings per share 0.48 0.48 0.49 0.49 0.47 0.43 2.13 0.96 0.90 6.67
Average basic shares outstanding 31,626,059 31,576,275 31,537,278 31,526,423 31,496,737 31,436,148 0.41 31,601,304 31,466,610 0.43
Average diluted shares outstanding 31,865,172 31,815,710 31,781,734 31,718,529 31,698,198 31,668,362 0.53 31,834,257 31,682,496 0.48
Common shares outstanding 31,644,706 31,604,937 31,545,145 31,533,703 31,519,641 31,480,395 0.40 31,644,706 31,519,641 0.40
Cash dividend per common share $0.17 $0.17 $0.17 $0.17 $0.17 $0.17 - $0.34 $0.34 -
Performance ratios
------------------
Return on average shareholders' equity 8.42% 8.59% 8.72% 8.84% 8.67% 8.19% 8.50% 8.44%
Return on average tangible shareholders' equity (1) 14.89% 15.45% 15.90% 16.50% 16.55% 16.05% 15.16% 16.31%
Return on average assets 1.06% 1.06% 1.08% 1.07% 1.02% 0.93% 1.06% 0.98%
Return on average tangible assets (2) 1.17% 1.18% 1.20% 1.20% 1.15% 1.05% 1.18% 1.10%
Net interest margin (FTE) 4.17% 4.03% 4.09% 4.12% 4.24% 4.04% 4.10% 4.12%
Yield on earning assets (FTE) 4.57% 4.45% 4.53% 4.58% 4.72% 4.53% 4.51% 4.60%
Cost of funding 0.40% 0.43% 0.45% 0.47% 0.48% 0.48% 0.42% 0.48%
Average earning assets to average assets 87.79% 87.49% 87.41% 87.32% 87.39% 87.35% 87.64% 87.79%
Average loans to average deposits 81.93% 81.44% 82.67% 82.26% 79.11% 77.00% 81.69% 78.05%
Noninterest income (less securities gains/
losses) to average assets 1.57% 1.53% 1.38% 1.53% 1.34% 1.27% 1.55% 1.31%
Noninterest expense (less debt prepayment penalties/
merger-related expenses) to average
assets 3.41% 3.27% 3.14% 3.32% 3.39% 3.25% 3.34% 3.32%
Net overhead ratio 1.84% 1.74% 1.76% 1.79% 2.06% 1.97% 1.79% 2.01%
Efficiency ratio (FTE) (4) 63.58% 62.99% 61.56% 62.90% 65.38% 65.48% 63.29% 65.43%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q2 2015 - For the Six Months Ending
2015 2014 Q2 2014 June 30,
---- ---- --------
Second First Fourth Third Second First Percent Percent
Average balances Quarter Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance
---------------- -------- ----
Total assets $5,847,539 $5,821,758 $5,746,146 $5,758,083 $5,836,607 $5,927,884 0.19 $5,834,718 $5,881,993 (0.80)
Earning assets 5,133,567 5,093,224 5,022,647 5,027,805 5,100,833 5,178,069 0.64 5,113,507 5,163,613 (0.97)
Securities 999,962 989,743 979,052 1,001,548 1,026,948 1,002,519 (2.63) 994,881 1,014,801 (1.96)
Mortgage loans held for sale 87,435 50,918 27,443 31,832 26,004 19,925 236.24 69,277 22,981 201.45
Loans, net of unearned 3,978,514 3,969,244 3,954,606 3,937,142 3,897,027 3,868,747 2.09 3,973,905 3,882,966 2.34
Intangibles 295,441 296,682 297,978 300,725 302,181 303,599 (2.23) 296,058 302,886 (2.25)
Noninterest-bearing deposits $969,770 $932,011 $936,672 $896,856 $905,180 $949,317 7.14 $950,995 $927,126 2.57
Interest-bearing deposits 3,886,199 3,941,863 3,846,891 3,889,133 4,020,754 4,074,745 (3.35) 3,913,877 4,047,601 (3.30)
Total deposits 4,855,969 4,873,874 4,783,563 4,785,988 4,925,934 5,024,063 (1.42) 4,864,872 4,974,727 (2.21)
Borrowed funds 204,884 168,758 190,928 214,017 169,373 170,091 20.97 186,921 169,730 10.13
Shareholders' equity 733,158 719,687 709,780 697,103 686,794 673,046 6.75 726,460 679,959 6.84
Q2 2015 - As of
2015 2014 Q4 2014 June 30,
---- ---- --------
Second First Fourth Third Second First Percent Percent
Balances at period end Quarter Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance
---------------------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Total assets $5,899,190 $5,882,098 $5,805,129 $5,751,711 $5,826,020 $5,902,831 1.62 $5,899,190 $5,826,020 1.26
Earning assets 5,186,419 5,168,497 5,063,039 5,053,252 5,063,873 5,161,173 2.44 5,186,419 5,063,873 2.42
Securities 965,290 1,016,393 983,747 980,328 1,007,331 1,046,688 (1.88) 965,290 1,007,331 (4.17)
Mortgage loans held for sale 108,023 102,780 25,628 30,451 28,116 28,433 321.50 108,023 28,116 284.20
Loans acquired from M&F 507,653 553,574 577,347 636,628 694,115 746,047 (12.07) 507,653 694,115 (26.86)
Loans not acquired 3,407,925 3,274,314 3,267,486 3,165,492 3,096,286 2,947,836 4.30 3,407,925 3,096,286 10.06
Loans acquired and subject to loss share 121,626 125,773 143,041 155,319 167,129 173,545 (14.97) 121,626 167,129 (27.23)
Total loans 4,037,204 3,953,661 3,987,874 3,957,439 3,957,530 3,867,428 1.24 4,037,204 3,957,530 2.01
Intangibles 294,808 296,053 297,330 298,609 301,478 302,903 (0.85) 294,808 301,478 (2.21)
Noninterest-bearing deposits $972,672 $959,351 $919,872 $935,544 $902,766 $914,964 5.74 $972,672 $902,766 7.74
Interest-bearing deposits 3,917,772 3,983,419 3,918,546 3,828,126 3,983,965 4,089,820 (0.02) 3,917,772 3,983,965 (1.66)
Total deposits 4,890,444 4,942,770 4,838,418 4,763,670 4,886,731 5,004,784 1.08 4,890,444 4,886,731 0.08
Borrowed funds 219,089 162,313 188,825 227,664 189,830 168,700 16.03 219,089 189,830 15.41
Shareholders' equity 730,976 723,196 711,651 700,475 688,215 676,715 2.72 730,976 688,215 6.21
Market value per common share $32.60 $30.05 $28.93 $27.05 $29.07 $29.05 12.69 $32.60 $29.07 12.14
Book value per common share 23.10 22.88 22.56 22.21 21.83 21.50 2.39 23.10 21.83 5.82
Tangible book value per common share 13.78 13.52 13.13 12.74 12.27 11.87 4.95 13.78 12.27 12.31
Shareholders' equity to assets (actual) 12.39% 12.29% 12.26% 12.18% 11.81% 11.46% 12.39% 11.81%
Tangible capital ratio (3) 7.78% 7.65% 7.52% 7.37% 7.00% 6.68% 7.78% 7.00%
Leverage ratio 9.90% 9.74% 9.53% 9.31% 8.91% 8.56% 9.90% 8.91%
Common equity tier 1 capital ratio 10.44% 10.35% N/A N/A N/A N/A 10.44% N/A
Tier 1 risk-based capital ratio 12.52% 12.47% 12.45% 12.28% 11.82% 11.54% 12.52% 11.82%
Total risk-based capital ratio 13.54% 13.51% 13.54% 13.43% 12.96% 12.70% 13.54% 12.96%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q2 2015 - As of
2015 2014 Q4 2014 June 30,
---- ---- --------
Second First Fourth Third Second First Percent Percent
Loans not acquired Quarter Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance
------------------ ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Commercial, financial, agricultural $437,181 $418,752 $418,501 $378,802 $365,262 $347,828 4.46 $437,181 $365,262 19.69
Lease financing 17,633 11,560 10,114 5,377 1,767 612 74.34 17,633 1,767 897.91
Real estate - construction 212,071 200,966 210,837 193,787 172,319 149,449 0.59 212,071 172,319 23.07
Real estate - 1-4 family mortgages 1,073,816 1,025,264 1,014,412 984,778 966,546 941,260 5.86 1,073,816 966,546 11.10
Real estate - commercial mortgages 1,589,969 1,542,706 1,538,950 1,527,680 1,516,372 1,441,404 3.32 1,589,969 1,516,372 4.85
Installment loans to individuals 77,255 75,066 74,672 75,068 74,020 67,283 3.46 77,255 74,020 4.37
------
Loans, net of unearned $3,407,925 $3,274,314 $3,267,486 $3,165,492 $3,096,286 $2,947,836 4.30 $3,407,925 $3,096,286 10.06
Loans acquired and subject to loss share by category
----------------------------------------------------
Commercial, financial, agricultural $3,726 $3,917 $6,684 $7,699 $7,677 $8,283 (44.25) $3,726 $7,677 (51.47)
Lease financing - - - - - - - - - -
Real estate - construction - - - 1,648 1,648 1,648 - - 1,648 (100.00)
Real estate - 1-4 family mortgages 40,333 42,758 44,017 46,354 49,616 52,252 (8.37) 40,333 49,616 (18.71)
Real estate - commercial mortgages 77,536 79,064 92,304 99,579 108,166 111,337 (16.00) 77,536 108,166 (28.32)
Installment loans to individuals 31 34 36 39 22 25 (13.89) 31 22 40.91
--- --- ---
Loans, net of unearned $121,626 $125,773 $143,041 $155,319 $167,129 $173,545 (14.97) $121,626 $167,129 (27.23)
Loans Acquired from M&F
-----------------------
Commercial, financial, agricultural $39,652 $52,119 $58,098 $64,058 $74,887 $84,005 (31.75) $39,652 $74,887 (47.05)
Lease financing - - - - - - - - - -
Real estate - construction 505 483 1,224 1,631 2,610 4,803 (58.74) 505 2,610 (80.65)
Real estate - 1-4 family mortgages 161,765 171,433 177,931 190,447 205,126 217,748 (9.09) 161,765 205,126 (21.14)
Real estate - commercial mortgages 295,484 317,224 325,660 363,793 390,781 415,417 (9.27) 295,484 390,781 (24.39)
Installment loans to individuals 10,247 12,315 14,434 16,699 20,711 24,074 (29.01) 10,247 20,711 (50.52)
Loans, net of unearned $507,653 $553,574 $577,347 $636,628 $694,115 $746,047 (12.07) $507,653 $694,115 (26.86)
Asset quality data
------------------
Assets not acquired:
Nonaccrual loans $15,514 $17,719 $18,781 $19,070 $17,175 $18,365 (17.40) $15,514 $17,175 (9.67)
Loans 90 past due or more 5,647 1,193 1,406 7,177 3,615 1,322 301.64 5,647 3,615 56.21
----- ----- ----- ----- ----- ----- ----- -----
Nonperforming loans 21,161 18,912 20,187 26,247 20,790 19,687 4.82 21,161 20,790 1.78
Other real estate owned 14,967 16,735 17,087 20,461 23,950 25,117 (12.41) 14,967 23,950 (37.51)
Nonperforming assets not acquired $36,128 $35,647 $37,274 $46,708 $44,740 $44,804 (3.07) $36,128 $44,740 (19.25)
======= =======
Assets acquired and subject to loss share:
Nonaccrual loans $19,487 $18,040 $24,172 $33,216 $41,425 $46,078 (19.38) $19,487 $41,425 (52.96)
Loans 90 past due or more - - 48 1,979 - 32 (100.00) - - -
--- --- --- ----- --- --- --- ---
Non-performing loans subject to loss share 19,487 18,040 24,220 35,195 41,425 46,110 (19.54) 19,487 41,425 (52.96)
Other real estate owned 3,853 4,325 6,368 4,033 7,472 10,218 (39.49) 3,853 7,472 (48.43)
-----
Nonperforming assets acquired and subject to loss share $23,340 $22,365 $30,588 $39,228 $48,897 $56,328 (23.70) $23,340 $48,897 (52.27)
======= ======= ======= ======= ======= ======= ======= =======
Assets acquired from M&F:
Nonaccrual loans $1,085 $1,627 $1,443 $1,991 $5,966 $6,393 (24.81) $1,085 $5,966 (81.81)
Loans 90 past due or more 2,523 9,636 9,259 8,375 5,057 1,922 (72.75) 2,523 5,057 (50.11)
----- ----- ----- ----- ----- ----- ----- -----
Nonperforming loans 3,608 11,263 10,702 10,366 11,023 8,315 (66.29) 3,608 11,023 (67.27)
Other real estate owned 8,244 10,626 11,017 9,565 10,381 12,406 (25.17) 8,244 10,381 (20.59)
-----
Nonperforming assets acquired from M&F $11,852 $21,889 $21,719 $19,931 $21,404 $20,721 (45.43) $11,852 $21,404 (44.63)
======= ======= ======= ======= ======= ======= ======= =======
Net loan charge-offs (recoveries) $1,589 $1,062 $3,330 $4,952 $2,194 $1,067 (52.28) $2,651 $3,261 (18.71)
Allowance for loan losses 41,888 42,302 42,289 44,569 47,304 48,048 (0.95) 41,888 $47,304 (11.45)
Annualized net loan charge-offs / average loans 0.16% 0.11% 0.33% 0.50% 0.23% 0.11% 0.13% 0.17%
Nonperforming loans / total loans* 1.10% 1.22% 1.38% 1.81% 1.85% 1.92% 1.10% 1.85%
Nonperforming assets / total assets* 1.21% 1.36% 1.54% 1.84% 1.97% 2.06% 1.21% 1.97%
Allowance for loan losses / total loans* 1.04% 1.07% 1.06% 1.13% 1.20% 1.24% 1.04% 1.20%
Allowance for loan losses / nonperforming loans* 94.65% 87.74% 76.74% 62.07% 64.59% 64.83% 94.65% 64.59%
Nonperforming loans / total loans** 0.62% 0.58% 0.62% 0.83% 0.67% 0.67% 0.62% 0.67%
Nonperforming assets / total assets** 0.61% 0.61% 0.64% 0.81% 0.77% 0.76% 0.61% 0.77%
Allowance for loan losses / total loans** 1.23% 1.29% 1.29% 1.41% 1.53% 1.63% 1.23% 1.53%
Allowance for loan losses / nonperforming loans** 197.95% 223.68% 209.49% 169.81% 227.53% 244.06% 197.95% 227.53%
*Based on all assets (including acquired assets)
**Excludes assets acquired from M&F and assets covered under loss share
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
RECONCILIATION OF GAAP TO NON-GAAP
----------------------------------
For the Six Months Ending
2015 2014 June 30,
---- ---- --------
Second First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Quarter 2015 2014
------- ------- ------- ------- ------- ------- ---- ----
Net income (GAAP) $15,394 $15,240 $15,597 $15,535 $14,853 $13,597 $30,634 $28,450
Amortization of intangibles, net of tax 858 873 902 947 1,019 1,026 1,731 2,047
Tangible net income (non-GAAP) $16,252 $16,113 $16,499 $16,482 $15,872 $14,623 $32,365 $30,497
Average shareholders' equity (GAAP) $733,158 $719,687 $709,780 $697,103 $686,794 $673,046 $726,460 $679,959
Intangibles 295,441 296,682 297,978 300,725 302,181 303,599 296,058 302,886
Average tangible shareholders' equity (non-GAAP) $437,717 $423,005 $411,802 $396,378 $384,613 $369,447 $430,402 $377,073
Average total assets (GAAP) $5,847,539 $5,821,758 $5,746,146 $5,758,083 $5,836,607 $5,927,884 $5,834,718 $5,881,993
Intangibles 295,441 296,682 297,978 300,725 302,181 303,599 296,058 302,886
Average tangible assets (non-GAAP) $5,552,098 $5,525,076 $5,448,168 $5,457,358 $5,534,426 $5,624,285 $5,538,660 $5,579,107
Actual total assets (GAAP) $5,899,190 $5,882,098 $5,805,129 $5,751,711 $5,826,020 $5,902,831 $5,899,190 $5,826,020
Intangibles 294,808 296,053 297,330 298,609 301,478 302,903 294,808 301,478
Actual tangible assets (non-GAAP) $5,604,382 $5,586,045 $5,507,799 $5,453,102 $5,524,542 $5,599,928 $5,604,382 $5,524,542
(1) Return on Average Equity
Return on (average) shareholders' equity (GAAP) 8.42% 8.59% 8.72% 8.84% 8.67% 8.19% 8.50% 8.44%
Effect of adjustment for intangible assets 6.47% 6.86% 7.18% 7.66% 7.88% 7.86% 6.66% 7.87%
Return on average tangible shareholders' equity (non-GAAP) 14.89% 15.45% 15.90% 16.50% 16.55% 16.05% 15.16% 16.31%
(2) Return on Average Assets
Return on (average) assets (GAAP) 1.06% 1.06% 1.08% 1.07% 1.02% 0.93% 1.06% 0.98%
Effect of adjustment for intangible assets 0.11% 0.12% 0.12% 0.13% 0.13% 0.12% 0.12% 0.13%
Return on average tangible assets (non-GAAP) 1.17% 1.18% 1.20% 1.20% 1.15% 1.05% 1.18% 1.10%
(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP) 12.39% 12.29% 12.26% 12.18% 11.81% 11.46% 12.39% 11.81%
Effect of adjustment for intangible assets 4.61% 4.65% 4.74% 4.81% 4.81% 4.79% 4.61% 4.81%
Tangible capital ratio (non-GAAP) 7.78% 7.65% 7.52% 7.37% 7.00% 6.68% 7.78% 7.00%
CALCULATION OF EFFICIENCY RATIO
-------------------------------
Interest income (FTE) $58,516 $55,910 $57,335 $58,098 $60,002 $57,811 $114,426 $117,813
Interest expense 5,099 5,324 5,580 5,886 6,108 6,206 10,423 12,314
Net Interest income (FTE) $53,417 $50,586 $51,755 $52,212 $53,894 $51,605 $104,003 $105,499
------- ------- ------- ------- ------- ------- -------- --------
Total noninterest income $22,917 $21,904 $19,971 $22,563 $19,471 $18,616 $44,821 $38,087
Securities gains (losses) 96 - - 375 - - 96 -
Gain on acquisition - - - - - - - -
Total noninterest income $22,821 $21,904 $19,971 $22,188 $19,471 $18,616 $44,725 $38,087
Total Income (FTE) $76,238 $72,490 $71,726 $74,400 $73,365 $70,221 $148,728 $143,586
======= ======= ======= ======= ======= ======= ======== ========
Total noninterest expense $51,176 $47,414 $45,979 $48,175 $49,396 $47,645 $98,590 $97,041
Amortization of intangibles 1,239 1,275 1,327 1,381 1,427 1,471 2,514 2,898
Merger-related expenses 1,467 478 499 - - 195 1,945 195
Debt extinguishment penalty - - - - - - - -
Total noninterest expense $48,470 $45,661 $44,153 $46,794 $47,969 $45,979 $94,131 $93,948
======= ======= ======= ======= ======= ======= ======= =======
(4) Efficiency Ratio 63.58% 62.99% 61.56% 62.90% 65.38% 65.48% 63.29% 65.43%
Logo - http://photos.prnewswire.com/prnh/20130207/CL56161LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/renasant-corporation-announces-2015-second-quarter-earnings-300116654.html
SOURCE Renasant Corporation
