RENASANT CORPORATION TUPELO, Miss., April 26, 2016 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced financial results for the first quarter of 2016. Net income for the first quarter of 2016 was $21.2 million, or basic earnings per share ("EPS") of $0.53 and diluted EPS of $0.52, as compared to $15.2 million, or basic and diluted EPS of $0.48, for the first quarter of 2015. Excluding the impact of after-tax merger and conversion expenses incurred during each quarter, basic and diluted EPS were $0.54 for the first quarter of 2016, as compared to basic and diluted EPS of $0.49 for the first quarter of 2015.
On April 26, 2016, the Board of Directors of the Company approved the payment of a quarterly cash dividend of eighteen cents ($0.18) per share to be paid June 30, 2016, to shareholders of record as of June 15, 2016. The per share dividend represents an increase of $.01, or 5.88%, from the dividend paid in the previous quarter.
For the first quarter of 2016, the Company's return on average assets and return on average equity were 1.07% and 8.12%, respectively, as compared to 1.06% and 8.59%, respectively, for the first quarter of 2015. The Company's 2016 first quarter return on average tangible assets and return on average tangible equity were 1.20% and 15.58%, respectively, as compared to 1.18% and 15.45%, respectively, for the first quarter of 2015.
On April 1, 2016, the Company completed its previously-announced acquisition of KeyWorth Bank ("KeyWorth"), a Georgia state bank headquartered in Atlanta, Georgia, in an all-stock merger. As of the acquisition date, KeyWorth operated six offices in the Atlanta metropolitan area and had approximately $399 million in assets, which included approximately $284 million in total loans and approximately $347 million in total deposits. The acquired operations of KeyWorth are not included in the financial information in this release.
"Our first quarter 2016 financial results reflect a strong start to what we expect to be a great year. We are fortunate to operate in economically vibrant markets, and our team is focused on capitalizing on opportunities throughout our footprint. These results include our successful completion of the Heritage acquisition, an annualized linked quarter non-acquired loan growth of 25.62% and a continuation of improving returns on profitability metrics as our return on average tangible assets was 1.20%, and our return on average tangible equity was 15.58%," said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "Additionally, we are pleased to announce an increase to our quarterly dividend which boosts our annual cash dividend from $0.68 to $0.72."
The following table presents the Company's profitability metrics for the first quarter of 2016, including and excluding the impact of after-tax merger and conversion expenses:
As Excluding
Reported Merger
Expenses
--------
Return on average
assets 1.07% 1.10%
Return on average
tangible assets 1.20% 1.23%
Return on average
equity 8.12% 8.34%
Return on average
tangible equity 15.58% 16.00%
Total assets as of March 31, 2016, were approximately $8.15 billion, as compared to $5.88 billion as of March 31, 2015, and $7.93 billion on a linked quarter basis.
Total deposits were $6.43 billion at March 31, 2016, as compared to $4.94 billion at March 31, 2015, and $6.22 billion at December 31, 2015. The Company's cost of funds was 37 basis points for the first quarter of 2016, as compared to 43 basis points for the same quarter in 2015, and 32 basis points for the quarter ended December 31, 2015. The Company's noninterest-bearing deposits averaged approximately $1.32 billion, or 20.99% of average deposits, for the first quarter of 2016, as compared to $932 million, or 19.12% of average deposits, for the first quarter of 2015, and $1.32 billion, or 21.36% of average deposits, for the quarter ended December 31, 2015.
Total loans, including loans acquired in the 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 $5.57 billion at March 31, 2016, as compared to $3.95 billion at March 31, 2015, and $5.41 billion on a linked quarter basis. Excluding acquired loans, loans grew 24.44% to $4.07 billion at March 31, 2016, as compared to $3.27 billion at March 31, 2015. On a linked quarter basis, non-acquired loans were $3.83 billion at December 31, 2015.
At March 31, 2016, the Company's Tier 1 leverage capital ratio was 9.19%, its Tier 1 risk-based capital ratio was 11.38%, and its total risk-based capital ratio was 12.17%. The Company's common equity Tier 1 capital ratio was 9.88% at March 31, 2016. In all capital ratio categories, the Company's regulatory capital ratios continued to be in excess of the regulatory minimums required to be classified as "well-capitalized." The Company's tangible common equity ratio was 7.52% as of March 31, 2016.
Net interest income was $70.1 million for the first quarter of 2016, as compared to approximately $48.8 million for the first quarter of 2015. Net interest margin was 4.21% for the first quarter of 2016, compared to 4.02% for the first quarter of 2015 and 4.33% on a linked quarter basis. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans was $1.6 million in the first quarter of 2016, and increased net interest margin 11 basis points compared to $590 thousand and a 5 basis point increase in net interest margin in the same period in 2015. The Company increased net interest margin by 21 basis points after recognizing $3.61 million in accelerated accretion in the fourth 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 $33.3 million for the first quarter of 2016, as compared to approximately $21.9 million for the first quarter of 2015, and $31.4 million for the fourth quarter of 2015. The Company's overall growth in noninterest income for the first quarter, as compared to the same period in the prior year, is primarily attributable to the Heritage acquisition and increases in the sales of mortgage loans that we originate.
Noninterest expense was $69.8 million for the first quarter of 2016, as compared to approximately $47.3 million for the first quarter of 2015, and $70.7 million on a linked quarter basis. The Company recorded merger and conversion expenses of approximately $948 thousand and $478 thousand during the first quarter of 2016 and 2015, respectively, and $1.9 million in the fourth quarter of 2015.
Annualized net charge-offs as a percentage of average loans, including acquired loans, declined to 10 basis points for the first quarter of 2016, as compared to 11 basis points for the first quarter of 2015. The Company recorded a provision for loan losses of $1.8 million for the first quarter of 2016, as compared to $1.1 million for the first quarter of 2015.
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):
March 31, 2016 December 31, 2015 March 31, 2015
-------------- ----------------- --------------
Not Acquired $26,995 $27,958 $35,647
Acquired and Subject to
Loss Sharing Agreements 8,424 9,746 22,365
Acquired and Not Subject to
Loss Sharing Agreements 42,224 43,125 21,889
------ ------ ------
Total $77,643 $80,829 $79,901
======= ======= =======
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 $14.2 million as of March 31, 2016, as compared to $18.9 million as of March 31, 2015, and $15.0 million at December 31, 2015. Nonperforming loans as a percentage of total loans were 0.35% as of March 31, 2016, as compared to 0.58% as of March 31, 2015, and 0.39% as of December 31, 2015.
The allowance for loan losses totaled $42.9 million at March 31, 2016, as compared to $42.3 million as of March 31, 2015, and $42.4 million as of December 31, 2015. The allowance for loan losses as a percentage of loans was 1.05% as of March 31, 2016, as compared to 1.29% as of March 31, 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 302.14% as of March 31, 2016, as compared to 223.68% as of March 31, 2015, and 283.46% as of December 31, 2015. Loans 30 to 89 days past due as a percentage of total loans were 0.17% at March 31, 2016, as compared to 0.37% at March 31, 2015, and 0.19% at December 31, 2015.
OREO was $12.8 million as of March 31, 2016, as compared to $16.7 million as of March 31, 2015, and $13.0 million at December 31, 2015. The Company continues to proactively market the properties held in OREO as it sold approximately $628 thousand of OREO during the first quarter of 2016, and had $1.1 million in sales during the fourth quarter of 2015.
CONFERENCE CALL INFORMATION:
The Company will hold executive management's quarterly webcast and conference call with analysts on Wednesday, April 27, 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/rnst160427. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation First Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.
The webcast will be archived on www.renasant.com beginning one hour after the call and will remain accessible for one year. Replays can also be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 10084127 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until May 11, 2016.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 112-year-old financial services institution. Renasant has assets of approximately $8.15 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)
Q1 2016 - For the Three Months Ending
2016 2015 Q4 2015 March 31,
---- ----
First Fourth Third Second First Percent Percent
Statement of earnings Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
--------------------- --------
Interest income - taxable equivalent basis $78,009 $79,679 $76,242 $58,516 $55,910 (2.10) $78,009 $55,910 39.53
Interest income $76,259 $77,787 $74,300 $56,769 $54,166 (1.96) $76,259 $54,166 40.79
Interest expense 6,205 5,436 5,688 5,155 5,385 14.14 6,205 5,385 15.23
Net interest income 70,054 72,351 68,612 51,614 48,781 (3.18) 70,054 48,781 43.61
Provision for loan losses 1,800 1,750 750 1,175 1,075 2.86 1,800 1,075 67.44
Net interest income after provision 68,254 70,601 67,862 50,439 47,706 (3.33) 68,254 47,706 43.07
Service charges on deposit accounts 7,991 8,260 8,151 6,522 6,335 (3.26) 7,991 6,335 26.13
Fees and commissions on loans and deposits 4,331 4,437 4,388 3,571 3,695 (2.40) 4,331 3,695 17.19
Insurance commissions and fees 1,962 1,956 2,380 2,119 1,967 0.32 1,962 1,967 (0.24)
Wealth management revenue 2,891 2,609 2,833 2,210 2,156 10.84 2,891 2,156 34.12
Securities gains (losses) (71) - - 96 - - (71) - -
Mortgage banking income 11,915 11,702 11,893 6,791 5,429 1.83 11,915 5,429 119.48
Gain on SBA Loans 996 509 376 90 293 95.78 996 293 239.26
Other 3,287 1,969 2,058 1,480 1,995 66.88 3,287 1,995 64.77
Total noninterest income 33,302 31,442 32,079 22,879 21,870 5.92 33,302 21,870 52.28
Salaries and employee benefits 42,393 43,409 43,047 30,395 28,260 (2.34) 42,393 28,260 50.01
Data processing 4,158 4,003 3,819 3,199 3,230 3.88 4,158 3,230 28.73
Occupancy and equipment 7,998 7,887 7,493 5,360 5,550 1.41 7,998 5,550 44.10
Other real estate 957 697 862 954 532 37.21 957 532 79.95
Amortization of intangibles 1,697 1,751 1,804 1,238 1,275 (3.07) 1,697 1,275 33.07
Merger and conversion related expenses 948 1,923 7,746 1,468 478 (50.69) 948 478 98.55
Debt extinguishment penalty - - - - - - - - -
Other 11,663 11,064 11,208 8,468 7,994 5.42 11,663 7,994 45.90
Total noninterest expense 69,814 70,734 75,979 51,082 47,319 (1.30) 69,814 47,319 47.54
Income before income taxes 31,742 31,309 23,962 22,236 22,257 1.38 31,742 22,257 42.62
Income taxes 10,526 10,149 7,741 6,842 7,017 3.71 10,526 7,017 50.00
Net income $21,216 $21,160 $16,221 $15,394 $15,240 0.27 $21,216 $15,240 39.22
Basic earnings per share $0.53 $0.53 $0.40 $0.49 $0.48 - $0.53 $0.48 10.42
Diluted earnings per share 0.52 0.52 0.40 0.48 0.48 - 0.52 0.48 8.33
Average basic shares outstanding 40,324,475 40,276,441 40,265,941 31,626,059 31,576,275 0.12 40,324,475 31,576,275 27.70
Average diluted shares outstanding 40,559,145 40,539,151 40,518,413 31,865,172 31,815,710 0.05 40,559,145 31,815,710 27.48
Common shares outstanding 40,373,753 40,293,291 40,268,455 31,644,706 31,604,937 0.20 40,373,753 31,604,937 27.75
Cash dividend per common share $0.17 $0.17 $0.17 $0.17 $0.17 - $0.17 $0.17 -
Performance ratios
------------------
Return on average shareholders' equity 8.12% 8.12% 6.33% 8.42% 8.59% 8.12% 8.59%
Return on average tangible shareholders' equity (1) 15.58% 15.84% 12.20% 14.89% 15.45% 15.58% 15.45%
Return on average assets 1.07% 1.06% 0.81% 1.06% 1.06% 1.07% 1.06%
Return on average tangible assets (2) 1.20% 1.19% 0.93% 1.17% 1.18% 1.20% 1.18%
Net interest margin (FTE) 4.21% 4.33% 4.09% 4.17% 4.02% 4.21% 4.02%
Yield on earning assets (FTE) 4.57% 4.65% 4.42% 4.57% 4.45% 4.57% 4.45%
Cost of funding 0.37% 0.32% 0.33% 0.41% 0.43% 0.37% 0.43%
Average earning assets to average assets 86.21% 86.07% 86.64% 87.79% 87.49% 86.21% 87.49%
Average loans to average deposits 87.39% 86.22% 83.63% 81.93% 81.44% 87.39% 81.44%
Noninterest income (less securities gains/
losses) to average assets 1.64% 1.55% 1.59% 1.56% 1.50% 1.64% 1.50%
Noninterest expense (less debt prepayment penalties/
merger-related expenses) to average
assets 3.48% 3.46% 3.43% 3.40% 3.26% 3.48% 3.26%
Net overhead ratio 1.84% 1.91% 1.84% 1.84% 1.76% 1.84% 1.76%
Efficiency ratio (FTE) (4) 64.47% 63.76% 64.96% 63.61% 63.20% 64.47% 63.20%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q1 2016 - For the Three Months Ending
2016 2015 Q4 2015 March 31,
---- ---- ---------
First Fourth Third Second First Percent Percent
Average balances Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
---------------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Total assets $7,961,700 $7,898,803 $7,897,769 $5,847,539 $5,821,756 0.80 $7,961,700 $5,821,756 36.76
Earning assets 6,863,905 6,798,474 6,842,452 5,133,567 5,093,224 0.96 6,863,905 5,093,224 34.77
Securities 1,103,504 1,117,322 1,143,577 999,962 989,743 (1.24) 1,103,504 989,743 11.49
Mortgage loans held for sale 217,200 268,096 398,480 87,435 50,918 (18.98) 217,200 50,918 326.57
Loans, net of unearned 5,482,167 5,341,943 5,223,273 3,978,514 3,969,244 2.62 5,482,167 3,969,244 38.12
Intangibles 473,852 473,996 449,042 295,441 296,682 (0.03) 473,852 296,682 59.72
Noninterest-bearing deposits $1,316,495 $1,323,467 $1,272,714 $969,770 $932,011 (0.53) $1,316,495 $932,011 41.25
Interest-bearing deposits 4,956,983 4,872,432 4,972,717 3,886,199 3,941,863 1.74 4,956,983 3,941,863 25.75
Total deposits 6,273,478 6,195,899 6,245,431 4,855,969 4,873,874 1.25 6,273,478 4,873,874 28.72
Borrowed funds 539,078 568,548 556,269 204,884 168,758 (5.18) 539,078 168,758 219.44
Shareholders' equity 1,050,668 1,033,692 1,016,143 733,158 719,687 1.64 1,050,668 719,687 45.99
Q1 2016 - As of
2016 2015 Q4 2015 March 31,
---- ---- ---------
First Fourth Third Second First Percent Percent
Balances at period end Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
---------------------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Total assets 8,146,229 7,926,496 7,910,963 5,899,190 5,881,849 2.77 8,146,229 5,881,849 38.50
Earning assets 7,045,180 6,778,485 6,810,285 5,186,419 5,168,497 3.93 7,045,180 5,168,497 36.31
Securities 1,101,820 1,105,205 1,139,553 965,290 1,016,393 (0.31) 1,101,820 1,016,393 8.40
Mortgage loans held for sale 298,365 225,254 317,681 108,023 102,780 32.46 298,365 102,780 190.30
Loans not acquired 4,074,413 3,830,434 3,607,005 3,407,925 3,274,314 6.37 4,074,413 3,274,314 24.44
Loans acquired and covered by FDIC loss-share agreements 44,989 93,142 100,839 121,626 125,773 (51.70) 44,989 125,773 (64.23)
Loans acquired and not covered by FDIC loss-share agreements 1,453,328 1,489,886 1,570,116 507,653 553,574 (2.45) 1,453,328 553,574 162.54
Total loans 5,572,730 5,413,462 5,277,960 4,037,204 3,953,661 2.94 5,572,730 3,953,661 40.95
Intangibles 476,539 474,683 474,830 294,808 296,053 0.39 476,539 296,053 60.96
Noninterest-bearing deposits 1,384,503 1,278,337 1,303,884 972,671 959,351 8.31 1,384,503 959,351 44.32
Interest-bearing deposits 5,046,874 4,940,265 4,930,677 3,917,772 3,983,419 2.16 5,046,874 3,983,419 26.70
Total deposits 6,431,377 6,218,602 6,234,560 4,890,443 4,942,770 3.42 6,431,377 4,942,770 30.12
Borrowed funds 561,671 570,496 551,740 219,089 162,313 (1.55) 561,671 162,313 246.04
Shareholders' equity 1,053,178 1,036,818 1,024,930 730,976 723,196 1.58 1,053,178 723,196 45.63
Market value per common share $32.91 $34.41 $32.85 $32.60 $30.05 (4.36) $32.91 $30.05 9.52
Book value per common share 26.09 25.73 25.45 23.10 22.88 1.38 26.09 22.88 14.02
Tangible book value per common share 14.28 13.95 13.66 13.78 13.52 2.38 14.28 13.52 5.62
Shareholders' equity to assets (actual) 12.93% 13.08% 12.96% 12.39% 12.30% 12.93% 12.30%
Tangible capital ratio (3) 7.52% 7.54% 7.40% 7.78% 7.65% 7.52% 7.65%
Leverage ratio 9.19% 9.16% 8.95% 9.89% 9.74% 9.19% 9.74%
Common equity tier 1 capital ratio 9.88% 9.99% 9.92% 10.45% 10.35% 9.88% 10.35%
Tier 1 risk-based capital ratio 11.38% 11.51% 11.46% 12.52% 12.47% 11.38% 12.47%
Total risk-based capital ratio 12.17% 12.32% 12.27% 13.55% 13.51% 12.17% 13.51%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q1 2016 - As of
2016 2015 Q4 2015 March 31,
---- ---- ---------
First Fourth Third Second First Percent Percent
Loans not acquired by category Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
------------------------------ ------- ------- ------- ------- ------- -------- ---- ---- --------
Commercial, financial, agricultural $520,463 $485,407 $450,688 $437,181 $418,752 7.22 $520,463 $418,752 24.29
Lease financing 41,937 34,815 24,698 17,633 11,560 20.46 41,937 11,560 262.78
Real estate - construction 325,188 291,701 268,805 212,071 200,966 11.48 325,188 200,966 61.81
Real estate - 1-4 family mortgages 1,263,879 1,204,228 1,128,556 1,073,816 1,025,264 4.95 1,263,879 1,025,264 23.27
Real estate - commercial mortgages 1,836,053 1,729,049 1,653,534 1,589,969 1,542,706 6.19 1,836,053 1,542,706 19.02
Installment loans to individuals 86,893 85,234 80,724 77,255 75,066 1.95 86,893 75,066 15.76
$4,074,413 $3,830,434 $3,607,005 $3,407,925 $3,274,314 6.37 $4,074,413 $3,274,314 24.44
Loans, net of unearned
Loans acquired and covered by FDIC loss-share agreements
--------------------------------------------------------
Commercial, financial, agricultural $624 $2,406 $2,467 $3,726 $3,917 (74.06) $624 $3,917 (84.07)
Lease financing - - - - - - - - -
Real estate - construction 86 130 137 - - (33.85) 86 - -
Real estate - 1-4 family mortgages 36,350 45,988 48,779 40,333 42,758 (20.96) 36,350 42,758 (14.99)
Real estate - commercial mortgages 7,870 44,550 49,382 77,536 79,064 (82.33) 7,870 79,064 (90.05)
Installment loans to individuals 59 68 74 31 34 (13.24) 59 34 73.53
--- --- ---
$44,989 $93,142 $100,839 $121,626 $125,773 (51.70) $44,989 $125,773 (64.23)
Loans, net of unearned
Loans acquired and not covered by FDIC loss-share agreements
------------------------------------------------------------
Commercial, financial, agricultural $133,847 $149,024 $167,966 $39,652 $52,119 (10.18) $133,847 $52,119 156.81
Lease financing - - - - - - - - -
Real estate - construction 52,300 65,834 70,428 505 483 (20.56) 52,300 483 10,728.16
Real estate - 1-4 family mortgages 477,266 485,107 485,170 161,765 171,433 (1.62) 477,266 171,433 178.40
Real estate - commercial mortgages 763,587 760,130 813,973 295,484 317,224 0.45 763,587 317,224 140.71
Installment loans to individuals 26,328 29,791 32,579 10,247 12,315 (11.62) 26,328 12,315 113.79
$1,453,328 $1,489,886 $1,570,116 $507,653 $553,574 (2.45) $1,453,328 $553,574 162.54
Loans, net of unearned
Asset quality data
------------------
Assets not acquired:
Nonaccrual loans $11,690 $13,645 $14,522 $15,514 $17,719 (14.33) $11,690 $17,719 (34.03)
Loans 90 past due or more 2,495 1,326 647 5,647 1,193 88.16 2,495 1,193 109.14
----- ----- --- ----- ----- ----- -----
Nonperforming loans 14,185 14,971 15,169 21,161 18,912 (5.25) 14,185 18,912 (24.99)
Other real estate owned 12,810 12,987 13,936 14,967 16,735 (1.36) 12,810 16,735 (23.45)
Nonperforming assets not acquired $26,995 $27,958 $29,105 $36,128 $35,647 (3.44) $26,995 $35,647 (24.27)
=======
Assets acquired and subject to loss share:
Nonaccrual loans $2,708 $3,319 $3,270 $19,487 # $18,040 (18.41) $2,708 $18,040 (84.99)
Loans 90 past due or more 4,343 3,609 4,143 - - 20.34 4,343 - -
----- ----- ----- --- --- ----- ---
Nonperforming loans subject to loss share 7,051 6,928 7,413 19,487 18,040 1.78 7,051 18,040 (60.91)
Other real estate owned 1,373 2,818 3,183 3,853 4,325 (51.28) 1,373 4,325 (68.25)
Nonperforming assets acquired and subject to loss share $8,424 $9,746 $10,596 $23,340 $22,365 (13.56) $8,424 $22,365 (62.33)
====== ====== ======= ======= ======= ====== =======
Assets acquired and not subject to loss share:
Nonaccrual loans $12,368 $12,070 $15,796 $1,085 $1,627 2.47 $12,368 $1,627 660.17
Loans 90 past due or more 10,805 11,458 8,824 2,523 9,636 (5.70) 10,805 9,636 12.13
------ ------ ----- ----- ----- ------ -----
Nonperforming loans 23,173 23,528 24,620 3,608 11,263 (1.51) 23,173 11,263 105.74
Other real estate owned 19,051 19,597 19,215 8,244 10,626 (2.79) 19,051 10,626 79.29
Nonperforming assets acquired $42,224 $43,125 $43,835 $11,852 $21,889 (2.09) $42,224 $21,889 92.90
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Net loan charge-offs (recoveries) $1,378 $1,364 $588 $1,588 $1,062 1.03 $1,378 $1,062 29.76
Allowance for loan losses 42,859 42,437 42,051 41,888 42,302 0.99 42,859 42,302 1.32
Annualized net loan charge-offs / average loans 0.10% 0.10% 0.04% 0.16% 0.11% 0.10% 0.11%
Nonperforming loans / total loans* 0.80% 0.84% 0.89% 1.10% 1.22% 0.80% 1.22%
Nonperforming assets / total assets* 0.95% 1.02% 1.06% 1.21% 1.36% 0.95% 1.36%
Allowance for loan losses / total loans* 0.77% 0.78% 0.80% 1.04% 1.07% 0.77% 1.07%
Allowance for loan losses / nonperforming loans* 96.51% 93.42% 89.09% 94.65% 87.74% 96.51% 87.74%
Nonperforming loans / total loans** 0.35% 0.39% 0.42% 0.62% 0.58% 0.35% 0.58%
Nonperforming assets / total assets** 0.33% 0.35% 0.37% 0.61% 0.61% 0.33% 0.61%
Allowance for loan losses / total loans** 1.05% 1.11% 1.17% 1.23% 1.29% 1.05% 1.29%
Allowance for loan losses / nonperforming loans** 302.14% 283.46% 277.22% 197.95% 223.68% 302.14% 223.68%
*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 Three Months Ending
2016 2015 March 31,
---- ---- ---------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter 2016 2015
------- ------- ------- ------- ------- ---- ----
Net income (GAAP) $21,216 $21,160 $16,221 $15,394 $15,240 $21,216 $15,240
1,134 1,183 1,221 857 873 1,134 873
Amortization of intangibles, net of tax
Tangible net income (non-GAAP) $22,350 $22,343 $17,442 $16,251 $16,113 $22,350 $16,113
Average shareholders' equity (GAAP) $1,050,668 $1,033,692 $1,016,143 $733,158 $719,687 $1,050,668 $719,687
473,852 473,996 449,042 295,441 296,682 473,852 296,682
Intangibles
Average tangible shareholders' equity (non-GAAP) $576,816 $559,696 $567,101 $437,717 $423,005 $576,816 $423,005
Average total assets (GAAP) $7,961,700 $7,898,803 $7,897,769 $5,847,539 $5,821,756 $7,961,700 $5,821,756
473,852 473,996 449,042 295,441 296,682 473,852 296,682
Intangibles
Average tangible assets (non-GAAP) $7,487,848 $7,424,807 $7,448,727 $5,552,098 $5,525,074 $7,487,848 $5,525,074
Actual shareholders' equity (GAAP) $1,053,178 $1,036,818 $1,024,930 $730,976 $723,196 $1,053,178 $723,196
476,539 474,683 474,830 294,808 296,053 476,539 296,053
Intangibles
Actual tangible shareholders' equity (non-GAAP) $576,639 $562,135 $550,100 $436,168 $427,143 $576,639 $427,143
Actual total assets (GAAP) $8,146,229 $7,926,496 $7,910,963 $5,899,190 $5,881,849 $8,146,229 $5,881,849
476,539 474,683 474,830 294,808 296,053 476,539 296,053
Intangibles
Actual tangible assets (non-GAAP) $7,669,690 $7,451,813 $7,436,133 $5,604,382 $5,585,796 $7,669,690 $5,585,796
(1) Return on Average Equity
Return on (average) shareholders' equity (GAAP) 8.12% 8.12% 6.33% 8.42% 8.59% 8.12% 8.59%
7.46% 7.72% 5.87% 6.47% 6.86% 7.46% 6.86%
Effect of adjustment for intangible assets
Return on average tangible shareholders' equity (non-GAAP) 15.58% 15.84% 12.20% 14.89% 15.45% 15.58% 15.45%
(2) Return on Average Assets
Return on (average) assets (GAAP) 1.07% 1.06% 0.81% 1.06% 1.06% 1.07% 1.06%
0.13% 0.13% 0.11% 0.12% 0.12% 0.13% 0.12%
Effect of adjustment for intangible assets
Return on average tangible assets (non-GAAP) 1.20% 1.19% 0.93% 1.17% 1.18% 1.20% 1.18%
(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP) 12.93% 13.08% 12.96% 12.39% 12.30% 12.93% 12.30%
5.41% 5.54% 5.56% 4.61% 4.65% 5.41% 4.65%
Effect of adjustment for intangible assets
Tangible capital ratio (non-GAAP) 7.52% 7.54% 7.40% 7.78% 7.65% 7.52% 7.65%
CALCULATION OF EFFICIENCY RATIO
-------------------------------
Interest income (FTE) $78,009 $79,679 $76,242 $58,516 $55,910 $78,009 $55,910
6,205 5,436 5,688 5,155 5,385 6,205 5,385
Interest expense
Net Interest income (FTE) $71,804 $74,243 $70,554 $53,361 $50,525 $71,804 $50,525
------- ------- ------- ------- ------- ------- -------
Total noninterest income $33,302 $31,442 $32,079 $22,879 $21,870 $33,302 $21,870
(71) - - 96 - (71) -
Securities gains (losses)
996 509 376 90 293 996 293
Gain on acquisition
Total noninterest income $32,377 $30,933 $31,702 $22,693 $21,576 $32,377 $21,576
Total Income (FTE) $104,181 $105,177 $102,257 $76,054 $72,101 $104,181 $72,101
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Total noninterest expense $69,814 $70,734 $75,979 $51,082 $47,319 $69,814 $47,319
1,697 1,751 1,804 1,238 1,275 1,697 1,275
Amortization of intangibles
948 1,923 7,746 1,468 478 948 478
Merger-related expenses
- - - - - - -
Debt extinguishment penalty
Total noninterest expense $67,169 $67,060 $66,429 # $48,376 $45,566 $67,169 $45,566
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(4) Efficiency Ratio 64.47% 63.76% 64.96% 63.61% 63.20% 64.47% 63.20%
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
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/renasant-corporation-announces-2016-first-quarter-earnings-increases-quarterly-cash-dividend-300258025.html
SOURCE Renasant Corporation
