RENASANT CORPORATION TUPELO, Miss., Oct. 18, 2016 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced its financial results for the third quarter of 2016. Net income for the third quarter of 2016 was $23.18 million, or basic and diluted earnings per share ("EPS") of $0.55, an increase of 42.90% from $16.22 million, or basic and diluted EPS of $0.40, for the third quarter of 2015.
The Company incurred pre-tax merger and conversion expenses of $268 thousand, equal to $178 thousand on an after-tax basis, during the third quarter of 2016 which had an immaterial impact on reported diluted EPS, as compared to pre-tax merger and conversion expenses incurred during the third quarter of 2015 of $7.75 million, equal to $5.24 million on an after-tax basis, which reduced diluted EPS by $0.13 for such quarter. In connection with the prepayment of approximately $38.89 million in long term advances from the Federal Home Loan Bank ("FHLB") in the third quarter of 2016, the Company incurred prepayment penalty charges of $2.21 million, equal to $1.47 million on an after-tax basis, which reduced diluted EPS by $0.04. The Company did not incur any FHLB prepayment penalties in the third quarter of 2015. Excluding the impact of after-tax merger and conversion expenses and debt prepayment penalties incurred during each quarter, diluted EPS was $0.59 for the third quarter of 2016, as compared to $0.53 for the third quarter of 2015.
The Company's balance sheet and results of operations as of and for the three months ending September 30, 2016, include the impact of the Company's acquisition of KeyWorth Bank ("KeyWorth"), a Georgia state bank headquartered in Atlanta, Georgia, which was completed on April 1, 2016. As of the acquisition date, KeyWorth operated six offices in the Atlanta metropolitan area and had approximately $399 million in assets, approximately $284 million in total loans, and approximately $347 million in total deposits. The assets acquired and liabilities assumed were recorded at estimated fair value as of the acquisition date and are subject to change pending finalization of all valuations.
On August 22, 2016, the Company completed the public offering and sale of $60 million of its 5.00% fixed-to-floating rate subordinated notes due September 1, 2026, and $40 million of its 5.50% fixed-to-floating rate subordinated notes due September 1, 2031 (collectively, the "Notes"). The Notes were sold at par, resulting in net proceeds, after deducting underwriting discounts and expenses, of approximately $98.17 million. The Company intends to use the net proceeds from the Notes offerings for general corporate purposes, which may include providing capital to support the Company's growth organically or through strategic acquisitions, repaying indebtedness and financing investments and capital expenditures, and for investments in the Bank as regulatory capital.
For the third quarter of 2016, the Company's return on average assets and return on average equity were 1.08% and 8.12%, respectively, as compared to 0.81% and 6.33%, respectively, for the third quarter of 2015. The Company's 2016 third quarter return on average tangible assets and return on average tangible shareholders' equity were 1.20% and 15.15%, respectively, as compared to 0.93% and 12.20%, respectively, for the third quarter of 2015.
The following table presents the Company's profitability metrics for the third quarter of 2016, including and excluding the impact of after-tax merger and conversion expenses and debt prepayment penalties:
As Reported Excluding Merger and
Conversion Expenses and
Debt Prepayment Penalties
-------------------------
Return on average assets 1.08% 1.15%
Return on average tangible assets 1.20% 1.28%
Return on average equity 8.12% 8.70%
Return on average tangible equity 15.15% 16.18%
"We are pleased with our third quarter financial results highlighted by 21.64% annualized linked quarter growth in our non-acquired loan portfolio and a strong performance from our mortgage division. These metrics, among others, contributed to a return on average tangible assets of 1.28%, when excluding merger and conversion expenses and debt prepayment penalties," said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "Furthermore, the successful issuance of our subordinated notes at preferable interest rates provides us the ability to continue to capitalize on opportunities either through organic balance sheet growth or accretive acquisition opportunities."
Total assets as of September 30, 2016, were approximately $8.54 billion, as compared to $7.93 billion as of December 31, 2015.
Total loans, including loans acquired in the KeyWorth, Heritage Financial Group, Inc. ("Heritage"), and First M&F Corporation ("First M&F") acquisitions or in FDIC-assisted transactions (collectively referred to as "acquired loans"), were approximately $6.11 billion at September 30, 2016, as compared to $5.41 billion at December 31, 2015. Excluding acquired loans, loans grew 18.16% to $4.53 billion at September 30, 2016, as compared to $3.83 billion at December 31, 2015. Non-acquired loans were $3.61 billion at September 30, 2015.
Total deposits were $6.82 billion at September 30, 2016, as compared to $6.22 billion at December 31, 2015. Noninterest-bearing deposits averaged approximately $1.51 billion, which represents 22.32% of the Company's average deposits, for the third quarter of 2016, as compared to $1.27 billion, or 20.38% of average deposits, for the third quarter of 2015. The Company's cost of funds was 40 basis points for the third quarter of 2016, as compared to 33 basis points for the same quarter in 2015.
As of September 30, 2016, the Company's Tier 1 leverage capital ratio was 9.38%, its Common Equity Tier 1 risk-based capital ratio was 10.16%, its Tier 1 risk-based capital ratio was 11.57%, and its total risk-based capital ratio was 13.84%. 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, 2016, our tangible common equity ratio was 8.03%.
Net interest income was $75.73 million for the third quarter of 2016, as compared to $68.61 million for the third quarter of 2015. Net interest margin was 4.15% for the third quarter of 2016, as compared to 4.09% for the third quarter of 2015. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans increased net interest margin by $3.40 million, or 18 basis points, in the third quarter of 2016 and $726 thousand, or 4 basis points, in the third quarter of 2015.
The Company's noninterest income is derived from diverse lines of business which primarily consist of originations and sales of mortgage loans, wealth management and insurance revenue sources along with income from deposit and loan products. Total noninterest income was $38.27 million for the third quarter of 2016, as compared to $32.08 million for the third quarter of 2015. The Company's overall increase in noninterest income for the third quarter, as compared to the same period in the prior year, is primarily attributable to an increase in mortgage banking income and the KeyWorth acquisition.
Noninterest expense was $76.47 million for the third quarter of 2016, as compared to $75.98 million for the third quarter of 2015. The Company recorded merger and conversion expenses of approximately $268 thousand and $7.75 million during the third quarter of 2016 and 2015, respectively. During the current quarter, the Company recognized a penalty charge of $2.21 million in connection with the prepayment of approximately $38.89 million in borrowings from the FHLB. No such charge was incurred during the third quarter of 2015. After considering these expenses, which are typically nonrecurring, the Company's overall growth in noninterest expense for the third quarter, as compared to the same period in the prior year, is primarily attributable to the addition of KeyWorth operations.
Annualized net charge-offs as a percentage of average loans were 0.05% for the third quarter of 2016, as compared to 0.04% for the third quarter of 2015. The Company recorded a provision for loan losses of $2.65 million for the third quarter of 2016, as compared to $750 thousand for the third quarter of 2015. The increase in provision is primarily attributed to the Company's loan growth over such period.
Nonperforming assets consists of loans 90 days or more past due, nonaccrual loans and other real estate owned ("OREO"). The following table provides details of the Company's nonperforming assets as of the dates presented (in thousands):
September 30, 2016 December 31, 2015 September 30, 2015
------------------ ----------------- ------------------
Not acquired $23,198 $27,958 $29,105
Acquired and subject to loss-share agreements 3,340 9,746 10,596
Acquired and not subject to loss-share agreements 41,697 43,125 43,835
------ ------ ------
Total $68,235 $80,829 $83,536
======= ======= =======
Since the nonperforming assets acquired in previous acquisitions or in connection with FDIC-assisted transactions (collectively referred to as "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 the Company's 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 (loans 90 days or more past due and nonaccrual loans) were $14.77 million as of September 30, 2016, as compared to $14.97 million as of December 31, 2015. Nonperforming loans as a percentage of total loans were 0.33% as of September 30, 2016, as compared to 0.39% as of December 31, 2015.
The allowance for loan losses totaled $45.92 million at September 30, 2016, as compared to $42.05 million as of September 30, 2015, and $42.44 million as of December 31, 2015. The allowance for loan losses as a percentage of loans was 1.01% as of September 30, 2016, as compared to 1.17% as of September 30, 2015, and 1.11% as of December 31, 2015.
The Company's coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 310.95% as of September 30, 2016, as compared to 277.22% as of September 30, 2015, and 283.46% as of December 31, 2015. Loans 30-to-89 days past due as a percentage of total loans were 0.22% at September 30, 2016, as compared to 0.23% at September 30, 2015, and 0.19% at December 31, 2015.
OREO was $8.43 million as of September 30, 2016, as compared to $12.99 million at December 31, 2015. The Company continues to proactively market the properties held in OREO as it sold approximately $4.18 million of OREO during the nine months ended September 30, 2016.
CONFERENCE CALL INFORMATION:
The Company will hold executive management's quarterly webcast and conference call with analysts on Wednesday, October 19, 2016 at 10:00 AM Eastern Time (9:00 AM Central Time). The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst161019.html. 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 10094427 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until November 2, 2016.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 112-year-old financial services institution. Renasant has assets of approximately $8.5 billion and operates more than 175 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)
Q3 2016 - For the Nine Months Ending
2015 Q3 2015 September 30,
----
Third Second First Fourth Third Second First Percent Percent
Statement of earnings Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
--------------------- --------
Interest income - taxable equivalent basis $84,794 $85,783 $78,009 $79,679 $76,242 $58,516 $55,910 11.22 $248,586 $190,668 30.38
Interest income $83,032 $84,008 $76,259 $77,788 $74,300 $56,769 $54,166 11.75 $243,299 $185,235 31.35
Interest expense 7,301 $6,851 6,205 5,437 5,688 5,155 5,385 28.36 20,357 16,228 25.44
Net interest income 75,731 77,157 70,054 72,351 68,612 51,614 48,781 10.38 222,942 169,007 31.91
Provision for loan losses 2,650 1,430 1,800 1,750 750 1,175 1,075 253.33 5,880 3,000 96.00
Net interest income after provision 73,081 75,727 68,254 70,601 67,862 50,439 47,706 7.69 217,062 166,007 30.75
Service charges on deposit accounts 8,200 7,521 7,991 8,261 8,151 6,522 6,335 0.60 23,712 21,008 12.87
Fees and commissions on loans and deposits 4,921 4,877 4,244 4,353 4,271 3,505 3,632 15.22 14,042 11,408 23.09
Insurance commissions and fees 2,420 2,175 1,962 1,956 2,381 2,119 1,967 1.64 6,557 6,467 1.39
Wealth management revenue 3,040 2,872 2,891 2,609 2,833 2,210 2,156 7.31 8,803 7,199 22.28
Securities gains (losses) - 1,257 (71) - - 96 - - 1,186 96 1,135.42
Mortgage banking income 15,846 13,420 11,915 11,702 11,893 6,791 5,429 33.24 41,181 24,113 70.78
Other 3,845 3,464 4,370 2,561 2,550 1,637 2,350 50.78 11,679 6,537 78.66
Total noninterest income 38,272 35,586 33,302 31,442 32,079 22,880 21,869 19.31 107,160 76,828 39.48
Salaries and employee benefits 44,702 45,387 42,393 43,408 43,048 30,394 28,260 3.84 132,482 101,702 30.26
Data processing 4,560 4,502 4,158 4,003 3,819 3,199 3,230 19.40 13,220 10,248 29.00
Occupancy and equipment 8,830 8,531 8,224 8,171 7,733 5,524 5,559 14.19 25,585 18,816 35.97
Other real estate 1,540 1,614 957 698 861 954 532 78.86 4,111 2,347 75.16
Amortization of intangibles 1,684 1,742 1,697 1,753 1,803 1,239 1,275 (6.60) 5,123 4,317 18.67
Merger and conversion related expenses 268 2,807 948 1,922 7,746 1,467 478 (96.54) 4,023 9,691 (58.49)
Debt extinguishment penalty 2,210 329 - - - - - 100.00 2,539 - 1.00
Other 12,674 12,347 11,437 10,779 10,969 8,305 7,985 15.54 36,458 27,259 33.75
Total noninterest expense 76,468 77,259 69,814 70,734 75,979 51,082 47,319 0.64 223,541 174,380 28.19
Income before income taxes 34,885 34,054 31,742 31,309 23,962 22,237 22,256 45.58 100,681 68,455 47.08
Income taxes 11,706 11,154 10,526 10,149 7,742 6,842 7,017 51.20 33,386 21,601 54.56
Net income $23,179 $22,900 $21,216 $21,160 $16,220 $15,395 $15,239 42.90 $67,295 $46,854 43.63
Basic earnings per share $0.55 $0.54 $0.53 $0.53 $0.40 $0.49 $0.48 37.50 $1.62 $1.36 19.12
Diluted earnings per share 0.55 0.54 0.52 0.52 0.40 0.48 0.48 37.50 1.61 1.35 19.26
Average basic shares outstanding 42,091,164 42,066,168 40,324,475 40,276,441 40,265,941 31,626,059 31,576,275 4.53 41,500,407 34,521,255 20.22
Average diluted shares outstanding 42,310,358 42,303,626 40,559,145 40,539,151 40,518,413 31,865,172 31,815,710 4.42 41,729,908 34,799,118 19.92
Common shares outstanding 42,102,224 42,085,690 40,373,753 40,293,291 40,268,455 31,644,706 31,604,937 4.55 42,102,224 40,268,455 4.55
Cash dividend per common share $0.18 $0.18 $0.17 $0.17 $0.17 $0.17 $0.17 5.88 $0.53 $0.51 3.92
Performance ratios
------------------
Return on average shareholders' equity 8.12% 8.21% 8.12% 8.12% 6.33% 8.42% 8.59% 8.15% 7.60%
Return on average tangible shareholders' equity (1) 15.15% 15.57% 15.58% 15.84% 12.20% 14.89% 15.45% 15.42% 13.98%
Return on average assets 1.08% 1.08% 1.07% 1.06% 0.81% 1.06% 1.06% 1.08% 0.96%
Return on average tangible assets (2) 1.20% 1.20% 1.20% 1.19% 0.93% 1.17% 1.18% 1.20% 1.08%
Net interest margin (FTE) 4.15% 4.29% 4.21% 4.33% 4.09% 4.17% 4.02% 4.21% 4.09%
Yield on earning assets (FTE) 4.54% 4.66% 4.57% 4.65% 4.42% 4.57% 4.45% 4.59% 4.48%
Cost of funding 0.40% 0.38% 0.37% 0.32% 0.33% 0.41% 0.43% 0.38% 0.38%
Average earning assets to average assets 86.82% 86.59% 86.21% 86.07% 86.64% 87.79% 87.49% 86.55% 87.23%
Average loans to average deposits 89.40% 87.73% 87.39% 86.22% 83.63% 81.93% 81.44% 88.20% 82.45%
Noninterest income (less securities gains/
losses) to average assets 1.78% 1.62% 1.69% 1.58% 1.61% 1.56% 1.52% 1.69% 1.57%
Noninterest expense (less debt prepayment penalties/
merger-related expenses) to average
assets 3.44% 3.49% 3.48% 3.46% 3.43% 3.40% 3.26% 3.47% 3.37%
Net overhead ratio 1.66% 1.87% 1.79% 1.88% 1.82% 1.84% 1.74% 1.78% 1.80%
Efficiency ratio (FTE) (4) 62.46% 63.91% 63.86% 63.45% 64.73% 63.53% 62.94% 63.39% 63.85%
RENASANT CORPORATION
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(Unaudited)
(Dollars in thousands, except per share data)
Q3 2016 - For the Nine Months Ending
2015 Q3 2015 September 30,
---- -------------
Third Second First Fourth Third Second First Percent Percent
Average balances Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
---------------- ------- ------- ------- ------- ------- ------- ------- -------- ---- ----
Total assets $8,562,198 $8,541,818 $7,961,700 $7,898,803 $7,897,769 $5,847,539 $5,821,758 8.41 $8,357,438 $6,529,959 27.99
Earning assets 7,433,461 7,396,284 6,863,905 6,798,474 6,842,452 5,133,567 5,093,223 8.64 7,233,303 5,696,155 26.99
Securities 1,045,905 1,111,831 1,103,504 1,117,322 1,143,577 999,962 989,743 (8.54) 1,086,869 1,044,991 4.01
Mortgage loans held for sale 241,314 306,011 217,200 268,096 398,480 87,435 50,918 (39.44) 254,930 180,217 41.46
Loans, net of unearned 6,048,017 5,897,650 5,482,167 5,341,943 5,223,273 3,978,514 3,969,243 15.79 5,811,351 4,394,937 32.23
Intangibles 497,064 499,503 473,852 473,996 449,042 295,441 296,682 10.69 490,225 347,613 41.03
Noninterest-bearing deposits $1,510,309 $1,477,380 $1,316,495 $1,323,467 $1,272,714 $969,770 $932,011 18.67 $1,435,438 $1,059,413 35.49
Interest-bearing deposits 5,255,102 5,245,406 4,956,983 4,872,432 4,972,717 3,886,199 3,941,863 5.68 5,153,589 4,270,702 20.67
Total deposits 6,765,411 6,722,786 6,273,478 6,195,899 6,245,431 4,855,969 4,873,874 8.33 6,589,027 5,330,115 23.62
Borrowed funds 550,222 594,459 539,078 568,548 556,269 204,884 168,758 (1.09) 561,294 311,390 80.25
Shareholders' equity 1,135,072 1,121,298 1,050,668 1,033,692 1,016,143 733,158 719,687 11.70 1,102,655 824,082 33.80
Q3 2016 - As of
2015 Q4 2015 September 30,
---- -------------
Third Second First Fourth Third Second First Percent Percent
Balances at period end Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
---------------------- ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Total assets 8,542,323 8,529,566 8,146,229 7,926,496 7,910,963 5,899,190 5,881,849 7.77 8,542,323 7,910,963 7.98
Earning assets 7,409,068 7,396,888 7,045,179 6,778,485 6,810,285 5,186,419 5,168,498 9.30 7,409,068 6,810,285 8.79
Securities 1,039,957 1,063,592 1,101,820 1,105,205 1,139,553 965,290 1,016,394 (5.90) 1,039,957 1,139,553 (8.74)
Mortgage loans held for sale 189,965 276,782 298,365 225,254 317,681 108,023 102,780 (15.67) 189,965 317,681 (40.20)
Loans not acquired 4,526,026 4,292,549 4,074,413 3,830,434 3,607,005 3,407,925 3,274,314 18.16 4,526,026 3,607,005 25.48
Loans acquired and covered by FDIC loss-share agreements 30,533 42,171 44,989 93,142 100,839 121,626 125,773 (67.22) 30,533 100,839 (69.72)
Loans acquired and not covered by FDIC loss-share agreements 1,548,674 1,630,709 1,453,328 1,489,886 1,570,116 507,653 553,574 3.95 1,548,674 1,570,116 (1.37)
Total loans 6,105,233 5,965,429 5,572,730 5,413,462 5,277,960 4,037,204 3,953,661 12.78 6,105,233 5,277,960 15.67
Intangibles 496,233 497,917 476,539 474,682 474,830 294,808 296,053 4.54 496,233 474,830 4.51
Noninterest-bearing deposits 1,514,820 1,459,383 1,384,503 1,278,337 1,303,884 972,672 959,351 18.50 1,514,820 1,303,884 16.18
Interest-bearing deposits 5,302,978 5,243,104 5,046,874 4,940,265 4,930,677 3,917,772 3,983,418 7.34 5,302,978 4,930,677 7.55
Total deposits 6,817,798 6,702,487 6,431,377 6,218,602 6,234,561 4,890,444 4,942,769 9.64 6,817,798 6,234,561 9.35
Borrowed funds 469,580 588,650 561,671 570,496 551,740 219,089 162,313 (17.69) 469,580 551,740 (14.89)
Shareholders' equity 1,142,099 1,124,256 1,053,178 1,036,818 1,024,930 730,976 723,196 10.15 1,142,099 1,024,930 11.43
Market value per common share $33.63 $32.33 $32.91 $34.41 $32.85 $32.60 $30.05 (2.27) $33.63 32.85 2.37
Book value per common share 27.13 26.71 26.09 25.73 25.45 23.10 22.88 5.42 27.13 25.45 6.58
Tangible book value per common share 15.34 14.88 14.28 13.95 13.66 13.78 13.52 9.96 15.34 13.66 12.30
Shareholders' equity to assets (actual) 13.37% 13.18% 12.93% 13.08% 12.96% 12.39% 12.30% 13.37% 12.96%
Tangible capital ratio (3) 8.03% 7.80% 7.52% 7.54% 7.40% 7.78% 7.65% 8.03% 7.40%
Leverage ratio 9.38% 9.18% 9.19% 9.16% 8.95% 9.89% 9.74% 9.38% 8.95%
Common equity tier 1 capital ratio 10.16% 10.12% 9.88% 9.99% 9.92% 10.45% 10.35% 10.16% 9.92%
Tier 1 risk-based capital ratio 11.57% 11.55% 11.38% 11.51% 11.46% 12.52% 12.47% 11.57% 11.46%
Total risk-based capital ratio 13.84% 12.31% 12.17% 12.32% 12.27% 13.55% 13.51% 13.84% 12.27%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q3 2016 - As of
2015 Q4 2015 September 30,
---- -------------
Third Second First Fourth Third Second First Percent Percent
Loans not acquired by category Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
------------------------------ ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Commercial, financial, agricultural $554,151 $530,258 $520,463 $485,407 $450,688 $437,181 $418,752 14.16 $554,151 $450,688 22.96
Lease financing 45,510 43,116 41,937 34,815 24,698 17,633 11,560 30.72 45,510 24,698 84.27
Real estate - construction 415,934 381,690 325,188 291,701 268,805 212,071 200,966 42.59 415,934 268,805 54.73
Real estate - 1-4 family mortgages 1,388,066 1,328,948 1,263,879 1,204,228 1,128,556 1,073,816 1,025,264 15.27 1,388,066 1,128,556 22.99
Real estate - commercial mortgages 2,030,626 1,918,778 1,836,053 1,729,049 1,653,534 1,589,969 1,542,706 17.44 2,030,626 1,653,534 22.81
Installment loans to individuals 91,739 89,759 86,893 85,234 80,724 77,255 75,066 7.63 91,739 80,724 13.65
Loans, net of unearned $4,526,026 $4,292,549 $4,074,413 $3,830,434 $3,607,005 $3,407,925 $3,274,314 18.16 $4,526,026 $3,607,005 25.48
Loans acquired and covered by FDIC loss-share agreements
--------------------------------------------------------
Commercial, financial, agricultural $14 $607 $624 $2,406 $2,467 $3,726 $3,917 (99.42) $14 $2,467 (99.43)
Lease financing - - - - - - - - - - -
Real estate - construction - 83 86 130 137 - - (100.00) - 137 (100.00)
Real estate - 1-4 family mortgages 30,304 34,640 36,350 45,988 48,779 40,333 42,758 (34.10) 30,304 48,779 (37.87)
Real estate - commercial mortgages 180 6,790 7,870 44,550 49,382 77,536 79,064 (99.60) 180 49,382 (99.64)
Installment loans to individuals 35 51 59 68 74 31 34 (48.53) 35 74 (52.70)
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Loans, net of unearned $30,533 $42,171 $44,989 $93,142 $100,839 $121,626 $125,773 (67.22) $30,533 $100,839 (69.72)
Loans acquired and not covered by FDIC loss-share agreements
------------------------------------------------------------
Commercial, financial, agricultural $139,961 $152,071 $133,847 $149,024 $167,966 $39,652 $52,119 (6.08) $139,961 $167,966 (16.67)
Lease financing - - - - - - - - - - -
Real estate - construction 71,704 70,958 52,300 65,834 70,428 505 483 8.92 71,704 70,428 1.81
Real estate - 1-4 family mortgages 452,274 485,458 477,266 485,107 485,170 161,765 171,433 (6.77) 452,274 485,170 (6.78)
Real estate - commercial mortgages 864,825 898,108 763,587 760,130 813,973 295,484 317,224 13.77 864,825 813,973 6.25
Installment loans to individuals 19,910 24,114 26,328 29,791 32,579 10,247 12,315 (33.17) 19,910 32,579 (38.89)
Loans, net of unearned $1,548,674 $1,630,709 $1,453,328 $1,489,886 $1,570,116 $507,653 $553,574 3.95 $1,548,674 $1,570,116 (1.37)
Asset quality data
------------------
Assets not acquired:
Nonaccrual loans $12,454 $10,591 $11,690 $13,645 $14,522 $15,514 $17,719 (8.73) $12,454 $14,522 (14.24)
Loans 90 past due or more 2,315 1,428 2,495 1,326 647 5,647 1,193 74.59 2,315 647 257.81
----- ----- ----- ----- --- ----- ----- ----- ---
Nonperforming loans 14,769 12,019 14,185 14,971 15,169 21,161 18,912 (1.35) 14,769 15,169 (2.64)
Other real estate owned 8,429 9,575 12,810 12,987 13,936 14,967 16,735 (35.10) 8,429 13,936 (39.52)
Nonperforming assets not acquired $23,198 $21,594 $26,995 $27,958 $29,105 $36,128 $35,647 (17.03) $23,198 $29,105 (20.30)
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Assets acquired and subject to loss share:
Nonaccrual loans $1,628 $2,060 $2,708 $3,319 $3,270 $19,487 # $18,040 (50.95) $1,628 $3,270 (50.21)
Loans 90 past due or more 786 2,076 4,343 3,609 4,143 - - (78.22) 786 4,143 (81.03)
--- ----- ----- ----- ----- --- --- --- -----
Nonperforming loans subject to loss share 2,414 4,136 7,051 6,928 7,413 19,487 18,040 (65.16) 2,414 7,413 (67.44)
Other real estate owned 926 2,618 1,373 2,818 3,183 3,853 4,325 (67.14) 926 3,183 (70.91)
Nonperforming assets acquired and subject to loss share $3,340 $6,754 $8,424 $9,746 $10,596 $23,340 $22,365 (65.73) $3,340 $10,596 (68.48)
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Assets acquired and not subject to loss share:
Nonaccrual loans $12,105 $13,312 $12,368 $12,070 $15,796 $1,085 $1,627 0.29 $12,105 $15,796 (23.37)
Loans 90 past due or more 12,619 13,650 10,805 11,458 8,824 2,523 9,636 10.13 12,619 8,824 43.01
------ ------ ------ ------ ----- ----- ----- ------ -----
Nonperforming loans 24,724 26,962 23,173 23,528 24,620 3,608 11,263 5.08 24,724 24,620 0.42
Other real estate owned 16,973 17,146 19,051 19,597 19,215 8,244 10,626 (13.39) 16,973 19,215 (11.67)
Nonperforming assets acquired $41,697 $44,108 $42,224 $43,125 $43,835 $11,852 $21,889 (3.31) $41,697 $43,835 (4.88)
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Net loan charge-offs (recoveries) $824 $191 $1,378 $1,364 $588 $1,588 $1,062 (39.59) $2,393 $3,238 (26.10)
Allowance for loan losses 45,924 44,098 42,859 42,437 42,051 41,888 42,302 8.22 45,924 $42,051 9.21
Annualized net loan charge-offs / average loans 0.05% 0.01% 0.10% 0.10% 0.04% 0.16% 0.11% 0.06% 0.10%
Nonperforming loans / total loans* 0.69% 0.72% 0.80% 0.84% 0.89% 1.10% 1.22% 0.69% 0.89%
Nonperforming assets / total assets* 0.80% 0.85% 0.95% 1.02% 1.06% 1.21% 1.36% 0.80% 1.06%
Allowance for loan losses / total loans* 0.75% 0.74% 0.77% 0.78% 0.80% 1.04% 1.07% 0.75% 0.80%
Allowance for loan losses / nonperforming loans* 109.59% 102.28% 96.51% 93.42% 89.09% 94.65% 87.74% 109.59% 89.09%
Nonperforming loans / total loans** 0.33% 0.28% 0.35% 0.39% 0.42% 0.62% 0.58% 0.33% 0.42%
Nonperforming assets / total assets** 0.27% 0.25% 0.33% 0.35% 0.37% 0.61% 0.61% 0.27% 0.37%
Allowance for loan losses / total loans** 1.01% 1.03% 1.05% 1.11% 1.17% 1.23% 1.29% 1.01% 1.17%
Allowance for loan losses / nonperforming loans** 310.95% 366.90% 302.14% 283.46% 277.22% 197.95% 223.68% 310.95% 277.22%
*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 September 30,
---- -------------
Third Second First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2016 2015
------- ------- ------- ------- ------- ------- ------- ---- ----
Net income (GAAP) $23,179 $22,900 $21,216 $21,160 $16,220 $15,395 $15,239 $67,295 $46,854
Amortization of intangibles, net of tax 1,119 1,171 1,134 1,185 1,220 858 873 3,424 2,955
Tangible net income (non-GAAP) $24,298 $24,071 $22,350 $22,345 $17,440 $16,253 $16,112 $70,719 $49,809
Average shareholders' equity (GAAP) $1,135,072 $1,121,298 $1,050,668 $1,033,692 $1,016,143 $733,158 $719,687 $1,102,655 $824,082
Intangibles 497,064 499,503 473,852 473,996 449,042 295,441 296,682 490,225 347,613
Average tangible shareholders' equity (non-GAAP) $638,008 $621,795 $576,816 $559,696 $567,101 $437,717 $423,005 $612,430 $476,469
Average total assets (GAAP) $8,562,198 $8,541,818 $7,961,700 $7,898,803 $7,897,769 $5,847,539 $5,821,758 $8,357,438 $6,529,959
Intangibles 497,064 499,503 473,852 473,996 449,042 295,441 296,682 490,225 347,613
Average tangible assets (non-GAAP) $8,065,134 $8,042,315 $7,487,848 $7,424,807 $7,448,727 $5,552,098 $5,525,076 $7,867,213 $6,182,346
Actual shareholders' equity (GAAP) $1,142,099 $1,124,256 $1,053,178 $1,036,818 $1,024,930 $730,976 $723,196 $1,142,099 $1,024,930
Intangibles 496,233 497,917 476,539 474,682 474,830 294,808 296,053 496,233 474,830
Actual tangible shareholders' equity (non-GAAP) $645,866 $626,339 $576,639 $562,136 $550,100 $436,168 $427,143 $645,866 $550,100
Actual total assets (GAAP) $8,542,323 $8,529,566 $8,146,229 $7,926,496 $7,910,963 $5,899,190 $5,881,849 $8,542,323 $7,910,963
Intangibles 496,233 497,917 476,539 474,682 474,830 294,808 296,053 496,233 474,830
Actual tangible assets (non-GAAP) $8,046,090 $8,031,649 $7,669,690 $7,451,814 $7,436,133 $5,604,382 $5,585,796 $8,046,090 $7,436,133
(1) Return on Average Equity
Return on (average) shareholders' equity (GAAP) 8.12% 8.21% 8.12% 8.12% 6.33% 8.42% 8.59% 8.15% 7.60%
Effect of adjustment for intangible assets 7.03% 7.36% 7.46% 7.72% 5.87% 6.47% 6.86% 7.27% 6.37%
Return on average tangible shareholders' equity (non-GAAP) 15.15% 15.57% 15.58% 15.84% 12.20% 14.89% 15.45% 15.42% 13.98%
(2) Return on Average Assets
Return on (average) assets (GAAP) 1.08% 1.08% 1.07% 1.06% 0.81% 1.06% 1.06% 1.08% 0.96%
Effect of adjustment for intangible assets 0.12% 0.13% 0.13% 0.13% 0.11% 0.12% 0.12% 0.13% 0.12%
Return on average tangible assets (non-GAAP) 1.20% 1.20% 1.20% 1.19% 0.93% 1.17% 1.18% 1.20% 1.08%
(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP) 13.37% 13.18% 12.93% 13.08% 12.96% 12.39% 12.30% 13.37% 12.96%
Effect of adjustment for intangible assets 5.34% 5.38% 5.41% 5.54% 5.56% 4.61% 4.65% 5.34% 5.56%
Tangible capital ratio (non-GAAP) 8.03% 7.80% 7.52% 7.54% 7.40% 7.78% 7.65% 8.03% 7.40%
CALCULATION OF EFFICIENCY RATIO
-------------------------------
Interest income (FTE) $84,794 $85,783 $78,009 $79,679 $76,242 $58,516 $55,910 $248,586 $190,668
Interest expense 7,301 6,851 6,205 5,437 5,688 5,155 5,385 20,357 16,228
Net Interest income (FTE) $77,493 $78,932 $71,804 $74,242 $70,554 $53,361 $50,525 $228,229 $174,440
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Total noninterest income $38,272 $35,586 $33,302 $31,442 $32,079 $22,880 $21,869 $107,160 $76,828
Securities gains (losses) - 1,257 (71) - - 96 - 1,186 96
Total noninterest income $38,272 $34,329 $33,373 $31,442 $32,079 $22,784 $21,869 $105,974 $76,732
------- ------- ------- ------- ------- ------- ------- -------- -------
Total Income (FTE) $115,765 $113,261 $105,177 $105,684 $102,633 $76,145 $72,394 $334,203 $251,172
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Total noninterest expense $76,468 $77,259 $69,814 $70,734 $75,979 $51,082 $47,319 $223,541 $174,380
Amortization of intangibles 1,684 1,742 1,697 1,753 1,803 1,239 1,275 5,123 4,317
Merger-related expenses 268 2,807 948 1,922 7,746 1,467 478 4,023 9,691
Debt extinguishment penalty 2,210 329 - - - - - 2,539 -
Total noninterest expense $72,306 $72,381 $67,169 $67,059 $66,430 # $48,376 $45,566 $211,856 $160,372
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(4) Efficiency Ratio 62.46% 63.91% 63.86% 63.45% 64.73% 63.53% 62.94% 63.39% 63.85%
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
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/renasant-announces-record-232-million-in-2016-third-quarter-earnings-300347085.html
SOURCE Renasant Corporation
