TUPELO, Miss., Oct. 20, 2015 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced its financial results for the third quarter of 2015. Net income for the third quarter of 2015 increased to $16.22 million, or basic and diluted earnings per share ("EPS") of $0.40, as compared to $15.54 million, or basic and diluted EPS of $0.49, for the third quarter of 2014.
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The Company's balance sheet and results of operations as of and for the three months ending September 30, 2015, include the impact of the Company's 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, which was completed on July 1, 2015. 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.
During the third quarter of 2015, the Company incurred pre-tax merger expenses related to the Heritage merger of approximately $7.75 million, or $5.15 million on an after-tax basis, which equated to a reduction of $0.13 in basic and diluted EPS for the third quarter of 2015.
For the third quarter of 2015, the Company's return on average assets and return on average equity were 0.81% and 6.28%, respectively, as compared to 1.07% and 8.84%, respectively, for the third quarter of 2014. The Company's 2015 third quarter return on average tangible assets and return on average tangible equity were 0.93% and 12.20%, respectively, as compared to 1.20% and 16.50%, respectively, for the third quarter of 2014. Excluding merger expenses on an after-tax basis, return on average assets and return on average equity were 1.07% and 8.28%, respectively, and return on average tangible assets and return on average tangible equity were 1.14% and 14.95%, respectively, for the third quarter of 2015. The following table provides profitability metrics for the third quarter of 2015 including and excluding the impact of after-tax merger expenses from the Heritage acquisition:
As Reported Excluding Merger Expenses -------- Return on average assets 0.81% 1.07% Return on average tangible assets 0.93% 1.14% Return on average equity 6.28% 8.28% Return on average tangible equity 12.20% 14.95%
"We are pleased with our third quarter financial results highlighted by the completion of the Heritage acquisition and 23.18% 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 $0.53 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, of 1.07% for the quarter, marking the sixth consecutive quarter we've achieved greater than 1.00% return on average assets."
Total assets as of September 30, 2015, were approximately $7.92 billion, as compared to $5.81 billion from December 31, 2014, and $5.90 billion on a linked quarter basis.
Total loans, including loans acquired in either the Heritage merger, First M&F Corporation ("First M&F") merger or in FDIC-assisted transactions (collectively referred to as "acquired loans"), were approximately $5.28 billion at September 30, 2015, as compared to $3.99 billion at December 31, 2014, and $4.04 billion on a linked quarter basis. Excluding acquired loans, loans grew $339.52 million, or 13.89% annualized, to $3.61 billion at September 30, 2015, as compared to $3.27 billion at December 31, 2014, and increased $199.08 million, or 23.18% annualized, from $3.41 billion on a linked quarter basis.
Total deposits were $6.23 billion at September 30, 2015, as compared to $4.84 billion at December 31, 2014, and $4.89 billion on a linked quarter basis. The increase in deposits is primarily attributable to the acquisition of Heritage. Noninterest-bearing deposits averaged approximately $1.27 billion, which represents 20.38% of the Company's average deposits, for the third quarter of 2015, as compared to $896.86 million, or 18.74% of average deposits, for the third quarter of 2014. The Company's cost of funds was 33 basis points for the third quarter of 2015, as compared to 47 basis points for the same quarter in 2014.
As of September 30, 2015, the Company's Tier 1 leverage capital ratio was 8.94%, its Common Equity Tier 1 risk-based capital ratio was 9.82%, its Tier 1 risk-based capital ratio was 11.32%, and its total risk-based capital ratio was 12.09%. The Company's regulatory capital ratios continue to be in excess of the regulatory minimums required to be classified as "well-capitalized." At September 30, 2015 our tangible common equity ratio was 7.40%.
Net interest income was $68.68 million for the third quarter of 2015, as compared to $50.47 million for the third quarter of 2014, and $51.67 million on a linked quarter basis. Net interest margin was 4.09% for the third quarter of 2015, as compared to 4.12% for the third quarter of 2014, and 4.17% on a linked quarter basis. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans increased net interest margin 4 basis points in the third quarter of 2015, as compared to 28 basis points on a linked quarter basis and 11 basis points in the third quarter of 2014.
Noninterest income was $32.12 million for the third quarter of 2015, as compared to $22.56 million for the third quarter of 2014, and $22.92 million on a linked quarter basis. The increase in noninterest income is primarily attributable to the Heritage acquisition and its mortgage operations.
Noninterest expense was $76.09 million for the third quarter of 2015, as compared to $48.18 million for the third quarter of 2014 and $51.18 million on a linked quarter basis. The increase in noninterest expense, when compared to the same period in 2014 as well as on a linked quarter basis, was primarily due to the expenses of the acquired Heritage operations as well as merger expenses incurred during the quarter in connection with the Heritage acquisition of $7.75 million.
At September 30, 2015, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $47.20 million and total OREO was $36.33 million. The Company's nonperforming loans and OREO that were acquired either through the Heritage merger, First M&F merger or in connection with FDIC-assisted transactions (collectively referred to as "acquired nonperforming assets") were $32.03 million and $22.40 million, respectively, at September 30, 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 $15.17 million as of September 30, 2015, as compared to $20.19 million as of December 31, 2014. Nonperforming loans as a percentage of total loans were 0.42% as of September 30, 2015, as compared to 0.62% as of December 31, 2014.
Annualized net charge-offs as a percentage of average loans were 0.04% for the third quarter of 2015, as compared to 0.50% for the third quarter of 2014. The Company recorded a provision for loan losses of $750 thousand for the third quarter of 2015, as compared to $2.22 million for the third quarter of 2014.
The allowance for loan losses totaled $42.05 million at September 30, 2015, as compared to $42.29 million as of December 31, 2014. The allowance for loan losses as a percentage of loans was 1.17% as of September 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 277.22% as of September 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 declined to 0.23% at September 30, 2015, as compared to 0.32% at December 31, 2014. OREO was $13.94 million as of September 30, 2015, as compared to $17.09 million as of December 31, 2014.
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, October 21, 2015.
The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst151021. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Third 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 10074200 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until November 4, 2015.
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."
Contacts: For Media: For Financials: John Oxford Kevin Chapman First Vice President Executive Vice President Director of Corp Communication Chief Financial Officer (662) 680-1219 (662) 680-1450 joxford@renasant.com kchapman@renasant.com
RENASANT CORPORATION -------------------- (Unaudited) (Dollars in thousands, except per share data) Q3 2015 - For the Nine Months Ending 2015 2014 Q3 2014 September 30, ---- ---- ------------- Third Second First Fourth Third Second First Percent Percent Statement of earnings Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance --------------------- -------- Interest income - taxable equivalent basis $76,242 $58,516 $55,910 $57,335 $58,098 $60,002 $57,811 31.23 $190,668 $175,910 8.39 Interest income $74,300 $56,769 $54,166 $55,597 $56,358 $58,277 $56,177 31.84 $185,235 $170,812 8.44 Interest expense 5,620 5,099 5,324 5,580 5,886 6,108 6,206 (4.52) 16,043 18,200 (11.85) Net interest income 68,680 51,670 48,842 50,017 50,472 52,169 49,971 36.08 169,192 152,612 10.86 Provision for loan losses 750 1,175 1,075 1,050 2,217 1,450 1,450 (66.17) 3,000 5,117 (41.37) Net interest income after provision 67,930 50,495 47,767 48,967 48,255 50,719 48,521 40.77 166,192 147,495 12.68 Service charges on deposit accounts 8,151 6,522 6,335 6,905 7,107 6,533 6,211 14.69 21,008 19,851 5.83 Fees and commissions on loans and deposits 5,704 4,954 4,492 4,772 5,877 5,175 4,677 (2.94) 15,150 15,729 (3.68) Insurance commissions and fees 2,381 2,119 1,967 1,973 2,270 2,088 1,863 4.89 6,467 6,221 3.95 Wealth management revenue 2,871 2,248 2,190 2,144 2,197 2,170 2,144 30.68 7,309 6,511 12.26 Securities gains (losses) - 96 - - 375 - - (100.00) 96 375 (74.40) Gain on sale of mortgage loans 10,578 5,407 4,633 2,367 2,635 2,006 1,585 301.44 20,618 6,226 231.16 Gain on acquisition - - - - - - - - - - - Other 2,432 1,571 2,287 1,809 2,102 1,499 2,136 15.70 6,290 5,737 9.64 Total noninterest income 32,117 22,917 21,904 19,970 22,563 19,471 18,616 42.34 76,938 60,650 26.86 Salaries and employee benefits 43,048 30,394 28,260 27,301 29,569 29,810 28,428 45.58 101,702 87,807 15.82 Data processing 3,773 3,152 3,181 2,949 2,906 2,850 2,695 29.83 10,106 8,451 19.58 Occupancy and equipment 7,733 5,524 5,559 5,146 5,353 4,906 4,847 44.46 18,816 15,106 24.56 Other real estate 861 954 532 723 1,101 1,068 1,701 (21.80) 2,347 3,870 (39.35) Amortization of intangibles 1,803 1,239 1,275 1,327 1,381 1,427 1,471 30.56 4,317 4,279 0.89 Merger-related expenses 7,746 1,467 478 499 - - 195 1.00 9,691 195 4,869.74 Debt extinguishment penalty - - - - - - - - - - - Other 11,121 8,446 8,129 8,034 7,865 9,335 8,308 41.40 27,696 25,508 8.58 Total noninterest expense 76,085 51,176 47,414 45,979 48,175 49,396 47,645 57.93 174,675 145,216 20.29 Income before income taxes 23,962 22,236 22,257 22,958 22,643 20,794 19,492 5.83 68,455 62,929 8.78 Income taxes 7,742 6,842 7,017 7,361 7,108 5,941 5,895 8.92 21,601 18,944 14.03 Net income $16,220 $15,394 $15,240 $15,597 $15,535 $14,853 $13,597 4.41 $46,854 $43,985 6.52 Basic earnings per share $0.40 $0.49 $0.48 $0.49 $0.49 $0.47 $0.43 (18.37) $1.36 $1.40 (2.86) Diluted earnings per share 0.40 0.48 0.48 0.49 0.49 0.47 0.43 (18.37) 1.35 1.39 (2.88) Average basic shares outstanding 40,265,941 31,626,059 31,576,275 31,537,278 31,526,423 31,496,737 31,436,148 27.72 34,521,255 31,486,767 9.64 Average diluted shares outstanding 40,518,413 31,865,172 31,815,710 31,781,734 31,718,529 31,698,198 31,668,362 27.74 34,799,118 31,694,601 9.80 Common shares outstanding 40,268,455 31,644,706 31,604,937 31,545,145 31,533,703 31,519,641 31,480,395 27.70 40,268,455 31,533,703 27.70 Cash dividend per common share $0.17 $0.17 $0.17 $0.17 $0.17 $0.17 $0.17 - $0.51 $0.51 - Performance ratios ------------------ Return on average shareholders' equity 6.28% 8.42% 8.59% 8.72% 8.84% 8.67% 8.19% 7.58% 8.58% Return on average tangible shareholders' equity (1) 12.20% 14.89% 15.45% 15.90% 16.50% 16.55% 16.05% 13.98% 16.37% Return on average assets 0.81% 1.06% 1.06% 1.08% 1.07% 1.02% 0.93% 0.96% 1.01% Return on average tangible assets (2) 0.93% 1.17% 1.18% 1.20% 1.20% 1.15% 1.05% 1.08% 1.13% Net interest margin (FTE) 4.09% 4.17% 4.03% 4.09% 4.12% 4.24% 4.04% 4.10% 4.13% Yield on earning assets (FTE) 4.42% 4.57% 4.45% 4.53% 4.58% 4.72% 4.53% 4.47% 4.61% Cost of funding 0.33% 0.40% 0.43% 0.45% 0.47% 0.48% 0.48% 0.38% 0.48% Average earning assets to average assets 86.57% 87.79% 87.49% 87.41% 87.32% 87.39% 87.35% 87.22% 87.35% Average loans to average deposits 83.63% 81.93% 81.44% 82.67% 82.26% 79.11% 77.00% 82.45% 79.44% Noninterest income (less securities gains/ losses) to average assets 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 3.43% 3.41% 3.27% 3.14% 3.32% 3.39% 3.25% 3.38% 3.32% Net overhead ratio 1.82% 1.84% 1.74% 1.76% 1.79% 2.06% 1.97% 1.80% 1.94% Efficiency ratio (FTE) (4) 64.76% 63.58% 62.99% 61.56% 62.90% 65.38% 65.48% 63.89% 64.56%
RENASANT CORPORATION -------------------- (Unaudited) (Dollars in thousands, except per share data) Q3 2015 - For the Nine Months Ending 2015 2014 Q3 2014 September 30, ---- ---- ------------- Third Second First Fourth Third Second First Percent Percent Average balances Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance ---------------- -------- ---- Total assets $7,905,538 $5,847,539 $5,821,758 $5,746,146 $5,758,083 $5,836,607 $5,927,884 37.29 $6,532,577 $5,840,233 11.85 Earning assets 6,843,888 5,133,567 5,093,224 5,022,647 5,027,805 5,100,833 5,178,069 36.12 5,697,976 5,101,686 11.69 Securities 1,145,013 999,962 989,743 979,052 1,001,548 1,026,948 1,002,519 14.32 1,046,812 1,010,335 3.61 Mortgage loans held for sale 398,480 87,435 50,918 27,443 31,832 26,004 19,925 1,151.82 180,217 25,964 594.10 Loans, net of unearned 5,223,273 3,978,514 3,969,244 3,954,606 3,937,142 3,897,027 3,868,747 32.67 4,394,937 3,901,223 12.66 Intangibles 456,811 295,441 296,682 297,978 300,725 302,181 303,599 51.90 350,231 302,158 15.91 Noninterest-bearing deposits $1,272,714 $969,770 $932,011 $936,672 $896,856 $905,180 $949,317 41.91 $1,059,413 $916,925 15.54 Interest-bearing deposits 4,972,717 3,886,199 3,941,863 3,846,891 3,889,133 4,020,754 4,074,745 27.86 4,270,702 3,994,198 6.92 Total deposits 6,245,431 4,855,969 4,873,874 4,783,563 4,785,989 4,925,934 5,024,063 30.49 5,330,115 4,911,123 8.53 Borrowed funds 556,269 204,884 168,758 190,928 214,017 169,373 170,091 159.92 311,390 184,655 68.63 Shareholders' equity 1,023,912 733,158 719,687 709,780 697,103 686,794 673,046 46.88 826,700 685,733 20.56 Q3 2015 - As of 2015 2014 Q4 2014 September 30, ---- ---- ------------- Third Second First Fourth Third Second First Percent Percent Balances at period end Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance ---------------------- ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- -------- Total assets $7,918,732 $5,899,190 $5,881,849 $5,805,129 $5,751,711 $5,826,020 $5,902,831 36.41 $7,918,732 $5,751,711 37.68 Earning assets 6,810,285 5,186,419 5,168,497 5,063,039 5,053,252 5,063,873 5,161,173 34.51 6,810,285 5,053,252 34.77 Securities 1,139,553 965,290 1,016,394 983,747 980,328 1,007,331 1,046,688 15.84 1,139,553 980,328 16.24 Mortgage loans held for sale 317,681 108,023 102,780 25,628 30,451 28,116 28,433 1,139.59 317,681 30,451 943.25 Loans not acquired 3,607,005 3,407,925 3,274,314 3,267,486 3,165,492 3,096,286 2,947,836 10.39 3,607,005 3,165,492 13.95 Loans acquired and covered by FDIC loss-share agreements 100,839 121,626 125,773 143,041 155,319 167,129 173,545 (29.50) 100,839 155,319 (35.08) Loans acquired and not covered by FDIC loss-share agreements 1,570,116 507,653 553,574 577,347 636,628 694,115 746,047 171.95 1,570,116 636,628 146.63 Total loans 5,277,960 4,037,204 3,953,661 3,987,874 3,957,439 3,957,530 3,867,428 32.35 5,277,960 3,957,439 33.37 Intangibles 482,599 294,808 296,053 297,330 298,609 301,478 302,903 62.31 482,599 298,609 61.62 Noninterest-bearing deposits $1,303,884 $972,672 $959,351 $919,872 $935,544 $902,766 $914,964 41.75 $1,303,884 $935,544 39.37 Interest-bearing deposits 4,930,677 3,917,772 3,983,418 3,918,546 3,828,126 3,983,965 4,089,820 25.83 4,930,677 3,828,126 28.80 Total deposits 6,234,561 4,890,444 4,942,769 4,838,418 4,763,670 4,886,731 5,004,784 28.86 6,234,561 4,763,670 30.88 Borrowed funds 551,740 219,089 162,313 188,825 227,664 189,830 168,700 192.20 551,740 227,664 142.35 Shareholders' equity 1,032,699 730,976 723,196 711,651 700,475 688,215 676,715 45.11 1,032,699 700,475 47.43 Market value per common share $32.85 $32.60 $30.05 $28.93 $27.05 $29.07 $29.05 13.55 $32.85 $27.05 21.44 Book value per common share 25.65 23.10 22.88 22.56 22.21 21.83 21.50 13.70 25.65 22.21 15.45 Tangible book value per common share 13.66 13.78 13.52 13.13 12.74 12.27 11.87 4.04 13.66 12.74 7.19 Shareholders' equity to assets (actual) 13.04% 12.39% 12.30% 12.26% 12.18% 11.81% 11.46% 13.04% 12.18% Tangible capital ratio (3) 7.40% 7.78% 7.65% 7.52% 7.37% 7.00% 6.68% 7.40% 7.37% Leverage ratio 8.94% 9.90% 9.74% 9.53% 9.31% 8.91% 8.56% 8.94% 9.31% Common equity tier 1 capital ratio 9.82% 10.44% 10.35% N/A N/A N/A N/A 9.82% N/A Tier 1 risk-based capital ratio 11.32% 12.52% 12.47% 12.45% 12.28% 11.82% 11.54% 11.32% 12.28% Total risk-based capital ratio 12.09% 13.54% 13.51% 13.54% 13.43% 12.96% 12.70% 12.09% 13.43%
RENASANT CORPORATION -------------------- (Unaudited) (Dollars in thousands, except per share data) Q3 2015 As of 2015 2014 - Q4 2014 September 30, ---- ---- ------------- Third Second First Fourth Third Second First Percent Percent Loans not acquired by category Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2015 2014 Variance ------------------------------ ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- -------- Commercial, financial, agricultural $450,688 $437,181 $418,752 $418,501 $378,802 $365,262 $347,828 7.69 $450,688 $378,802 18.98 Lease financing 24,698 17,633 11,560 10,114 5,377 1,767 612 144.20 24,698 5,377 359.33 Real estate - construction 268,805 212,071 200,966 210,837 193,787 172,319 149,449 27.49 268,805 193,787 38.71 Real estate - 1-4 family mortgages 1,128,556 1,073,816 1,025,264 1,014,412 984,778 966,546 941,260 11.25 1,128,556 984,778 14.60 Real estate - commercial mortgages 1,653,534 1,589,969 1,542,706 1,538,950 1,527,680 1,516,372 1,441,404 7.45 1,653,534 1,527,680 8.24 Installment loans to individuals 80,724 77,255 75,066 74,672 75,068 74,020 67,283 8.10 80,724 75,068 7.53 ------ Loans, net of unearned $3,607,005 $3,407,925 $3,274,314 $3,267,486 $3,165,492 $3,096,286 $2,947,836 10.39 $3,607,005 $3,165,492 13.95 Loans acquired and covered by FDIC loss-share agreements -------------------------------------------------------- Commercial, financial, agricultural $2,467 $3,726 $3,917 $6,684 $7,699 $7,677 $8,283 (63.09) $2,467 $7,699 (67.96) Lease financing - - - - - - - - - - - Real estate - construction 137 - - - 1,648 1,648 1,648 - 137 1,648 (91.69) Real estate - 1-4 family mortgages 48,779 40,333 42,758 44,017 46,354 49,616 52,252 10.82 48,779 46,354 5.23 Real estate - commercial mortgages 49,382 77,536 79,064 92,304 99,579 108,166 111,337 (46.50) 49,382 99,579 (50.41) Installment loans to individuals 74 31 34 36 39 22 25 105.56 74 39 89.74 --- --- --- Loans, net of unearned $100,839 $121,626 $125,773 $143,041 $155,319 $167,129 $173,545 (29.50) $100,839 $155,319 (35.08) Loans acquired and not covered by FDIC loss-share agreements ------------------------------------------------------------ Commercial, financial, agricultural $167,966 $39,652 $52,119 $58,098 $64,058 $74,887 $84,005 189.11 $167,966 $64,058 162.21 Lease financing - - - - - - - - - - - Real estate - construction 70,428 505 483 1,224 1,631 2,610 4,803 5,653.92 70,428 1,631 4,218.09 Real estate - 1-4 family mortgages 485,170 161,765 171,433 177,931 190,447 205,126 217,748 172.67 485,170 190,447 154.75 Real estate - commercial mortgages 813,973 295,484 317,224 325,660 363,793 390,781 415,417 149.95 813,973 363,793 123.75 Installment loans to individuals 32,579 10,247 12,315 14,434 16,699 20,711 24,074 125.71 32,579 16,699 95.10 Loans, net of unearned $1,570,116 $507,653 $553,574 $577,347 $636,628 $694,115 $746,047 171.95 $1,570,116 $636,628 146.63 Asset quality data ------------------ Assets not acquired: Nonaccrual loans $14,522 $15,514 $17,719 $18,781 $19,070 $17,175 $18,365 (22.68) $14,522 $19,070 (23.85) Loans 90 past due or more 647 5,647 1,193 1,406 7,177 3,615 1,322 (53.98) 647 7,177 (90.99) --- ----- ----- ----- ----- ----- ----- --- ----- Nonperforming loans 15,169 21,161 18,912 20,187 26,247 20,790 19,687 (24.86) 15,169 26,247 (42.21) Other real estate owned 13,936 14,967 16,735 17,087 20,461 23,950 25,117 (18.44) 13,936 20,461 (31.89) Nonperforming assets not acquired $29,105 $36,128 $35,647 $37,274 $46,708 $44,740 $44,804 (21.92) $29,105 $46,708 (37.69) ======= ======= ======= Assets acquired and subject to loss share: Nonaccrual loans $3,270 $19,487 $18,040 $24,172 $33,216 $41,425 $46,078 (86.47) $3,270 $33,216 (90.16) Loans 90 past due or more 4,143 - - 48 1,979 - 32 8,531.25 4,143 1,979 109.35 ----- --- --- --- ----- --- --- ----- ----- Non-performing loans subject to loss share 7,413 19,487 18,040 24,220 35,195 41,425 46,110 (69.39) 7,413 35,195 (78.94) Other real estate owned 3,183 3,853 4,325 6,368 4,033 7,472 10,218 (50.02) 3,183 4,033 (21.08) Nonperforming assets acquired and subject to loss share $10,596 $23,340 $22,365 $30,588 $39,228 $48,897 $56,328 (65.36) $10,596 $39,228 (72.99) ======= ======= ======= ======= ======= ======= ======= ======= ======= Assets acquired and not subject to loss share: Nonaccrual loans $15,796 $1,085 $1,627 $1,443 $1,991 $5,966 $6,393 994.66 $15,796 $1,991 693.37 Loans 90 past due or more 8,824 2,523 9,636 9,259 8,375 5,057 1,922 (4.70) 8,824 8,375 5.36 ----- ----- ----- ----- ----- ----- ----- ----- ----- Nonperforming loans 24,620 3,608 11,263 10,702 10,366 11,023 8,315 130.05 24,620 10,366 137.51 Other real estate owned 19,215 8,244 10,626 11,017 9,565 10,381 12,406 74.41 19,215 9,565 100.89 Nonperforming assets acquired $43,835 $11,852 $21,889 $21,719 $19,931 $21,404 $20,721 101.83 $43,835 $19,931 119.93 ======= ======= ======= ======= ======= ======= ======= ======= ======= Net loan charge-offs (recoveries) $588 $1,588 $1,062 $3,330 $4,952 $2,194 $1,067 (82.34) $3,238 $8,213 (60.57) Allowance for loan losses 42,051 41,888 42,302 42,289 44,569 47,304 48,048 (0.56) 42,051 $44,569 (5.65) Annualized net loan charge-offs / average loans 0.04% 0.16% 0.11% 0.33% 0.50% 0.23% 0.11% 0.10% 0.28% Nonperforming loans / total loans* 0.89% 1.10% 1.22% 1.38% 1.81% 1.85% 1.92% 0.89% 1.81% Nonperforming assets / total assets* 1.05% 1.21% 1.36% 1.54% 1.84% 1.97% 2.06% 1.05% 1.84% Allowance for loan losses / total loans* 0.80% 1.04% 1.07% 1.06% 1.13% 1.20% 1.24% 0.80% 1.13% Allowance for loan losses / nonperforming loans* 89.09% 94.65% 87.74% 76.74% 62.07% 64.59% 64.83% 89.09% 62.07% Nonperforming loans / total loans** 0.42% 0.62% 0.58% 0.62% 0.83% 0.67% 0.67% 0.42% 0.83% Nonperforming assets / total assets** 0.37% 0.61% 0.61% 0.64% 0.81% 0.77% 0.76% 0.37% 0.81% Allowance for loan losses / total loans** 1.17% 1.23% 1.29% 1.29% 1.41% 1.53% 1.63% 1.17% 1.41% Allowance for loan losses / nonperforming loans** 277.22% 197.95% 223.68% 209.49% 169.81% 227.53% 244.06% 277.22% 169.81% *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 Nine Months Ending 2015 2014 September 30, ---- ---- ------------- Third Second First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2015 2014 ------- ------- ------- ------- ------- ------- ------- ---- ---- Net income (GAAP) $16,220 $15,394 $15,240 $15,597 $15,535 $14,853 $13,597 $46,854 $43,985 Amortization of intangibles, net of tax 1,220 858 873 902 947 1,019 1,026 2,955 2,991 ----- --- --- --- --- ----- ----- ----- ----- Tangible net income (non-GAAP) $17,440 $16,252 $16,113 $16,499 $16,482 $15,872 $14,623 $49,809 $46,976 Average shareholders' equity (GAAP) $1,023,912 $733,158 $719,687 $709,780 $697,103 $686,794 $673,046 $826,700 $685,733 Intangibles 456,811 295,441 296,682 297,978 300,725 302,181 303,599 350,231 302,158 ------- ------- ------- ------- ------- ------- ------- ------- ------- Average tangible shareholders' equity (non-GAAP) $567,101 $437,717 $423,005 $411,802 $396,378 $384,613 $369,447 $476,469 $383,575 Average total assets (GAAP) $7,905,538 $5,847,539 $5,821,758 $5,746,146 $5,758,083 $5,836,607 $5,927,884 $6,532,577 $5,840,233 Intangibles 456,811 295,441 296,682 297,978 300,725 302,181 303,599 350,231 302,158 ------- ------- ------- ------- ------- ------- ------- ------- ------- Average tangible assets (non-GAAP) $7,448,727 $5,552,098 $5,525,076 $5,448,168 $5,457,358 $5,534,426 $5,624,285 $6,182,346 $5,538,075 Actual shareholders's equity (GAAP) $1,032,699 $730,976 $723,196 $711,651 $700,475 $688,215 $676,715 $1,032,699 $700,475 Intangibles 482,599 294,808 296,053 297,330 298,609 301,478 302,903 482,599 298,609 ------- ------- ------- ------- ------- ------- ------- ------- ------- Actual tangible shareholders' (non-GAAP) $550,100 $436,168 $427,143 $414,321 $401,866 $386,737 $373,812 $550,100 $401,866 Actual total assets (GAAP) $7,918,732 $5,899,190 $5,881,849 $5,805,129 $5,751,711 $5,826,020 $5,902,831 $7,918,732 $5,751,711 Intangibles 482,599 294,808 296,053 297,330 298,609 301,478 302,903 482,599 298,609 ------- ------- ------- ------- ------- ------- ------- ------- ------- Actual tangible assets (non-GAAP) $7,436,133 $5,604,382 $5,585,796 $5,507,799 $5,453,102 $5,524,542 $5,599,928 $7,436,133 $5,453,102 (1) Return on Average Equity Return on (average) shareholders' equity (GAAP) 6.28% 8.42% 8.59% 8.72% 8.84% 8.67% 8.19% 7.58% 8.58% Effect of adjustment for intangible assets 5.92% 6.47% 6.86% 7.18% 7.66% 7.88% 7.86% 6.40% 7.80% Return on average tangible shareholders' equity (non-GAAP) 12.20% 14.89% 15.45% 15.90% 16.50% 16.55% 16.05% 13.98% 16.37% (2) Return on Average Assets Return on (average) assets (GAAP) 0.81% 1.06% 1.06% 1.08% 1.07% 1.02% 0.93% 0.96% 1.01% Effect of adjustment for intangible assets 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) 0.93% 1.17% 1.18% 1.20% 1.20% 1.15% 1.05% 1.08% 1.13% (3) Shareholder Equity Ratio Shareholders' equity to (actual) assets (GAAP) 13.04% 12.39% 12.30% 12.26% 12.18% 11.81% 11.46% 13.04% 12.18% Effect of adjustment for intangible assets 5.64% 4.61% 4.65% 4.74% 4.81% 4.81% 4.79% 5.64% 4.81% Tangible capital ratio (non-GAAP) 7.40% 7.78% 7.65% 7.52% 7.37% 7.00% 6.68% 7.40% 7.37% CALCULATION OF EFFICIENCY RATIO ------------------------------- Interest income (FTE) $76,242 $58,516 $55,910 $57,335 $58,098 $60,002 $57,811 $190,668 $175,910 Interest expense 5,620 5,099 5,324 5,580 5,886 6,108 6,206 16,043 18,200 ----- ----- ----- ----- ----- ----- ----- ------ ------ Net Interest income (FTE) $70,622 $53,417 $50,586 $51,755 $52,212 $53,894 $51,605 $174,625 $157,710 ------- ------- ------- ------- ------- ------- ------- -------- -------- Total noninterest income $32,117 $22,917 $21,904 $19,970 $22,563 $19,471 $18,616 $76,938 $60,650 Securities gains (losses) - 96 - - 375 - - 96 375 Gain on acquisition - - - - - - - - - --- --- --- --- --- --- --- --- --- Total noninterest income $32,117 $22,821 $21,904 $19,970 $22,188 $19,471 $18,616 $76,842 $60,275 Total Income (FTE) $102,739 $76,238 $72,490 $71,725 $74,400 $73,365 $70,221 $251,467 $217,985 ======== ======= ======= ======= ======= ======= ======= ======== ======== Total noninterest expense $76,085 $51,176 $47,414 $45,979 $48,175 $49,396 $47,645 $174,675 $145,216 Amortization of intangibles 1,803 1,239 1,275 1,327 1,381 1,427 1,471 4,317 4,279 Merger-related expenses 7,746 1,467 478 499 - - 195 9,691 195 Debt extinguishment penalty - - - - - - - - - --- --- --- --- --- --- --- --- --- Total noninterest expense $66,536 $48,470 $45,661 $44,153 $46,794 $47,969 $45,979 $160,667 $140,742 ======= ======= ======= ======= ======= ======= ======= ======== ======== (4) Efficiency Ratio 64.76% 63.58% 62.99% 61.56% 62.90% 65.38% 65.48% 63.89% 64.56%
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SOURCE Renasant Corporation