RENASANT CORPORATION TUPELO, Miss., Jan. 17, 2017 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced earnings results for the fourth quarter and year ended December 31, 2016. Net income for the fourth quarter of 2016 was approximately $23.6 million, up 11.70%, as compared to $21.2 million for the fourth quarter of 2015. Basic and diluted earnings per share ("EPS") were $0.56 and $0.55, respectively, for the fourth quarter of 2016, as compared to basic and diluted EPS of $0.53 and $0.52, respectively, for the fourth quarter of 2015.
Net income for 2016 was $90.9 million, an increase of 33.69%, as compared to $68.0 million for 2015. Basic and diluted EPS were $2.18 and $2.17, respectively, for 2016, as compared to basic and diluted EPS of $1.89 and $1.88, respectively, for 2015.
The Company incurred expenses and charges in connection with certain transactions that are considered to be infrequent or non-recurring in nature. The following table presents the impact of these charges on reported EPS for the dates presented:
Three months ended Three months ended
December 31, 2016 December 31, 2015
----------------- -----------------
Pre-tax After-tax Impact to Pre-tax After-tax Impact to Diluted EPS
Diluted
EPS
---
Merger and conversion expenses $ - $ - $ - $1,923 $1,300 $0.03
Loss share termination 2,053 1,495 0.04 - - -
Year ended Year ended
December 31, 2016 December 31, 2015
----------------- -----------------
Pre-tax After-tax Impact to Diluted EPS Pre-tax After-tax Impact to Diluted EPS
------- --------- --------------------- ------- --------- ---------------------
Merger and conversion expenses $4,023 $2,694 $0.06 $11,614 $7,918 $0.23
Debt prepayment penalty 2,539 1,700 0.04 - - -
Loss share termination 2,053 1,495 0.04 - - -
The Company's balance sheet and results of operations as of and for the year ending December 31, 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 December 8, 2016, the Company's wholly owned subsidiary, Renasant Bank (the "Bank"), entered into an agreement with the Federal Deposit Insurance Corporation (the "FDIC") that terminated all of the Bank's loss share agreements with the FDIC, which includes Single-Family Shared Loss and Commercial Shared Loss agreements. All rights and obligations of the Bank and the FDIC under the FDIC loss share agreements were eliminated under the termination agreement. The Company incurred a one-time pre-tax charge of $2.1 million, or $1.4 million on an after-tax basis, in connection with the termination agreement. At December 31, 2016, the Company had $28.1 million in loans, $2.6 million of which were nonperforming, and $487 thousand in other real estate owned ("OREO") which had been previously covered under these loss share agreements.
"We made significant achievements in 2016, and the financial results for the year are a testament to a well executed plan. Our diluted EPS of $2.17 per share represents our highest reported yearly earnings which was driven by the strong performance of our overall company coupled with the successful conversion and integration of KeyWorth's operations," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "The results include our successful completion of the KeyWorth acquisition and a 22.97% annual growth in our legacy loan portfolio. As we look to 2017, we believe we are well positioned to continue to improve on profitability and earnings growth, which in turn will generate shareholder value."
Highlights from the fourth quarter and annual results of 2016 include the following:
Enhanced Profitability
-- Total assets increased $773.4 million to $8.7 billion at December 31,
2016, as compared to $7.9 billion at December 31, 2015. Earning assets
contributed $778.3 million of the increase year over year.
-- Loans not acquired increased $880.0 million, or 22.97%, to $4.7 billion
from December 31, 2015. For the fourth quarter of 2016, the yield on
loans was 5.02% compared to 5.03% for the same period in 2015. The yield
on loans excluding the impact from purchase accounting adjustments
during the fourth quarter of 2016 was 4.51% compared to 4.48% for the
same period in 2015. The yield on loans was 4.95% for the full year of
2016 compared to 4.91% for 2015. The yield on loans excluding the impact
from purchase accounting adjustments on loans was 4.47% and 4.50% for
2016 and 2015, respectively.
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2016 2015 2016 2015
---- ---- ---- ----
Taxable equivalent interest income on loans (as reported) $79,894 $71,144 $303,830 $237,408
Accretable yield recognized on purchased loans 8,092 7,806 29,614 20,024
Interest income on loans (excluding accretable yield) $71,802 $63,338 $274,216 $217,384
Average loans $6,331,660 $5,610,039 $6,133,171 $4,836,002
Loan yield, as reported 5.02% 5.03% 4.95% 4.91%
Loan yield excluding accretable yield 4.51% 4.48% 4.47% 4.50%
-- Total deposits increased $840.5 million, or 13.52%, to $7.1 billion from
December 31, 2015, with noninterest bearing deposits growing 22.14%
during the same time. Noninterest-bearing deposits averaged $1.47
billion, or 22.00% of average deposits, for 2016, compared to $1.13
billion, or 20.29% of average deposits, for 2015. For the fourth quarter
of 2016, the cost of total deposits was 28 basis points, as compared to
22 basis points for the same period in 2015. The cost of total deposits
was 27 basis points for the full year of 2016, as compared to 25 basis
points in 2015.
-- Net interest income was $78.0 million for the fourth quarter of 2016, as
compared to $72.4 million for the fourth quarter of 2015. Net interest
margin was 4.24% for the fourth quarter of 2016, as compared to 4.33%
for the fourth quarter of 2015. The following table reconciles reported
net interest margin to net interest margin excluding the impact from
purchase accounting adjustments on loans for the periods presented:
Three Months Ended
December 31,
------------
2016 2015
---- ----
Taxable equivalent net interest income (as reported) $79,774 $74,242
Accretable yield recognized on purchased loans(1) 8,092 7,806
Net interest income (excluding accretable yield) $71,682 $66,436
Average earning assets $7,483,222 $6,798,474
Net interest margin, as reported 4.24% 4.33%
Net interest margin, excluding accretable yield 3.81% 3.88%
(1) Includes additional interest income recognized in connection with the acceleration of paydowns
and payoffs from acquired loans of $4,728 and $3,686 for the three months ended December 31,
2016 and 2015, respectively, which increased net interest margin by 25 basis points and 22 basis
points for the same periods, respectively.
-- Net interest income was $301.0 million for the year ended December 31,
2016, as compared to $241.4 million for the year ended December 31,
2015. Net interest margin was 4.22% for 2016, as compared to 4.16% for
the prior year. The following table reconciles reported net interest
margin to net interest margin excluding the impact from purchase
accounting adjustments on loans for the periods presented:
Year Ended
December 31,
------------
2016 2015
---- ----
Taxable equivalent net interest income (as reported) $308,002 $248,613
Accretable yield recognized on purchased loans(1) 29,614 20,024
Net interest income (excluding accretable yield) $278,388 $228,589
Average earning assets $7,296,296 $5,974,000
Net interest margin, as reported 4.22% 4.16%
Net interest margin, excluding accretable yield 3.82% 3.83%
(1) Includes additional interest income recognized in connection with the acceleration of paydowns
and payoffs from acquired loans of $14,733 and $9,130 for the year ended December 31, 2016
and 2015, respectively, which increased net interest margin by 20 basis points and 15 basis
points for the same periods, respectively.
-- Noninterest income for the fourth quarter of 2016 was $30.1 million, as
compared to $31.4 million in the same period of 2015. The decrease is
driven by a decline in mortgage banking income resulting from rising
interest rates during the fourth quarter of 2016. Noninterest income
increased to $137.2 million for the full year of 2016, as compared to
$108.3 million for 2015. The growth is primarily attributable to an
increase in mortgage banking income, income from the Company's wealth
management division and the KeyWorth acquisition.
-- Noninterest expense was $71.4 million for the fourth quarter of 2016, as
compared to $70.7 million for the fourth quarter of 2015 and $294.9
million for the full year of 2016, as compared to $245.1 million for
2015. Excluding nonrecurring charges for merger and conversion expenses,
debt prepayment penalties and loss share termination, the increase from
2015 is primarily attributable to the addition of KeyWorth operations
and strategic additions of personnel.
The following table presents the Company's profitability metrics for the quarter and year ending December 31, 2016, including and excluding the impact of after-tax merger and conversion expenses, debt prepayment penalties and loss share termination:
Three Months Ended Year Ended
December 31, 2016 December 31, 2016
----------------- -----------------
As Reported Excluding Merger and As Reported Excluding Merger and
Conversion Expenses, Debt
Prepayment Penalties and Loss Conversion Expenses, Debt
Share Termination Prepayment Penalties and
Loss Share Termination
----------------------
Return on average assets 1.09% 1.16% 1.08% 1.15%
Return on average tangible assets 1.22% 1.28% 1.20% 1.28%
Return on average equity 8.14% 8.61% 8.15% 8.66%
Return on average tangible equity 14.90% 15.73% 15.28% 16.21%
Aggressively Managed Problem Credits
Total nonperforming assets were $58.8 million at December 31, 2016, a decrease of $22.0 million from December 31, 2015, and consisted of $35.5 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $23.3 million in OREO.
The Company's nonperforming loans and OREO that were purchased in previous acquisitions (collectively referred to as "acquired nonperforming assets") were $22.2 million and $17.4 million, respectively, at December 31, 2016, as compared to $30.5 million and $22.4 million, respectively, at December 31, 2015. The acquired nonperforming assets were recorded at fair value at the time of acquisition, which significantly mitigates the Company's actual loss. As such, the remaining information in this release on nonperforming loans, OREO and the related asset quality ratios primarily focuses on non-acquired nonperforming assets.
-- Non-acquired nonperforming loans decreased to $13.4 million, or 0.28% of
total non-acquired loans, at December 31, 2016, from $15.0 million, or
0.39% of total non-acquired loans, at December 31, 2015. Early stage
delinquencies, or loans 30-to-89 days past due, as a percentage of total
loans were 0.23% at December 31, 2016, as compared to 0.19% at December
31, 2015.
-- Non-acquired OREO decreased 54.35% to $5.9 million at December 31, 2016,
from $13.0 million at December 31, 2015. Non-acquired OREO sales totaled
$10.0 million in 2016 with $4.2 million occurring during the fourth
quarter of 2016.
-- The allowance for loan losses represents 0.69% of total loans at
December 31, 2016, as compared to 0.78% at December 31, 2015. The
allowance for loan losses represents 0.91% of nonaquired loans at
December 31, 2016, as compared to 1.11% at December 31, 2015.
-- Net loan charge-offs were $4.8 million, or 0.31% of average total
loans, for the fourth quarter of 2016, as compared to $1.4 million,
or 0.10% of average total loans, for the same period in 2015. Net
loan charge-offs were $7.2 million, or 0.12% of average total loans,
for 2016, as compared to $4.6 million, or 0.10% of average total
loans, for 2015. The increase year over year and quarter over
quarter is attributable to bringing several problem credits to final
resolution. The charges were fully reserved for in the Company's
allowance for loan losses and resulted in no additional provision
for loan loss expense.
-- Provision for loan losses was $1.7 million for the fourth quarter of
2016, as compared to $1.8 million for the fourth quarter of 2016 and
$7.5 million for the full year 2016, as compared to $4.8 million for
2015. The increase in the Company's provision year over year is
primarily attributable to the aforementioned nonacquired loan
growth.
Built Our Capital Ratios
-- At December 31, 2016, Tier 1 leverage capital ratio was 10.59%, Common
Equity Tier 1 ratio was 11.48%, Tier 1 risk-based bapital ratio was
12.86%, and total risk-based capital ratio was 15.03%. All regulatory
ratios exceed the minimums required to be considered "well-capitalized."
-- Tangible common equity ratio was 9.00% at December 31, 2016, as compared
to 7.54% at December 31, 2015.
-- In December 2016, the Company completed the underwritten public offering
of 2,135,000 shares of the Company's common stock at a public offering
price of $41.50 per share resulting in net proceeds to the Company of
$84.1 million.
-- In August 2016, the Company completed the public offering and sale of
$60 million of the Company's 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 resulted in net proceeds to the
Company of $98.2 million and qualify as Tier 2 capital.
CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time on Wednesday, January 18, 2017.
The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst170118.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Fourth Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.
The webcast will be archived on www.renasant.com beginning one hour after the call and will remain accessible for one year. Replays can also be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 10098912 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 2, 2017.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 113-year-old financial services institution. Renasant has assets of approximately $8.7 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 the Company's portfolio of outstanding loans, and competition in the Company's markets. Management undertakes 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 and certain charges that the Company considers to be non-recurring in nature. The Company's management uses these non-GAAP financial measures 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, and non-recurring charges can vary extensively from company to company and, as to intangible assets, 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, the ratio of tangible equity to tangible assets (commonly referred to as the "tangible capital ratio") and the efficiency ratio. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company's calculations may not be comparable to other similarly titled measures presented by other companies. Also there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption "Reconciliation of GAAP to Non-GAAP."
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q4 2016 - For the Year Ending
2016 2015 Q4 2015 December 31,
---- ----
Fourth Third Second First Fourth Third Second First Percent Percent
Statement of earnings Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
--------------------- --------
Interest income - taxable equivalent basis $87,564 $84,786 $85,783 $78,009 $79,679 $76,242 $58,516 $55,910 9.90 $336,149 $270,278 24.37
Interest income $85,839 $83,032 $84,008 $76,259 $77,788 $74,300 $56,769 $54,166 10.35 $329,138 $263,023 25.14
Interest expense 7,790 7,301 6,851 6,205 5,437 5,688 5,155 5,385 43.28 28,147 21,665 29.92
Net interest income 78,049 75,731 77,157 70,054 72,351 68,612 51,614 48,781 7.88 300,991 241,358 24.71
Provision for loan losses 1,650 2,650 1,430 1,800 1,750 750 1,175 1,075 (5.71) 7,530 4,750 58.53
Net interest income after provision 76,399 73,081 75,727 68,254 70,601 67,862 50,439 47,706 8.21 293,461 236,608 24.03
Service charges on deposit accounts 8,163 8,200 7,521 7,991 8,261 8,151 6,522 6,335 (1.19) 31,875 29,269 8.90
Fees and commissions on loans and deposits 4,588 4,921 4,877 4,244 4,353 4,271 3,505 3,632 5.40 18,630 15,761 18.20
Insurance commissions and fees 1,951 2,420 2,175 1,962 1,956 2,381 2,119 1,967 (0.26) 8,508 8,423 1.01
Wealth management revenue 2,849 3,040 2,872 2,891 2,609 2,833 2,210 2,156 9.20 11,652 9,808 18.80
Securities gains (losses) - - 1,257 (71) - - 96 - - 1,186 96 1,135.42
Mortgage banking income 8,262 15,846 13,420 11,915 11,702 11,893 6,791 5,429 (29.40) 49,443 35,815 38.05
Other 4,258 3,845 3,464 4,370 2,561 2,550 1,637 2,350 66.26 15,937 9,098 75.17
Total noninterest income 30,071 38,272 35,586 33,302 31,442 32,079 22,880 21,869 (4.36) 137,231 108,270 26.75
Salaries and employee benefits 39,966 44,702 45,387 42,393 43,409 43,048 30,394 28,260 (7.93) 172,448 145,111 18.84
Data processing 4,503 4,560 4,502 4,158 4,003 3,819 3,199 3,230 12.49 17,723 14,251 24.36
Occupancy and equipment 8,809 8,830 8,531 8,224 8,171 7,733 5,524 5,559 7.81 34,394 26,987 27.45
Other real estate 1,585 1,540 1,614 957 698 861 954 532 127.08 5,696 3,045 87.06
Amortization of intangibles 1,624 1,684 1,742 1,697 1,752 1,803 1,239 1,275 (7.31) 6,747 6,069 11.17
Merger and conversion related expenses - 268 2,807 948 1,923 7,746 1,467 478 (100.00) 4,023 11,614 (65.36)
Debt extinguishment penalty - 2,210 329 - - - - - - 2,539 - 1.00
Loss share termination 2,053 - - - - - - - 100.00 2,053 - 1.00
Other 12,834 12,674 12,347 11,437 10,778 10,969 8,306 7,984 19.08 49,292 38,037 29.59
Total noninterest expense 71,374 76,468 77,259 69,814 70,734 75,979 51,083 47,318 0.90 294,915 245,114 20.32
Income before income taxes 35,096 34,885 34,054 31,742 31,309 23,962 22,236 22,257 12.10 135,777 99,764 36.10
Income taxes 11,461 11,706 11,154 10,526 10,149 7,742 6,842 7,017 12.93 44,847 31,750 41.25
Net income $23,635 $23,179 $22,900 $21,216 $21,160 $16,220 $15,394 $15,240 11.70 $90,930 $68,014 33.69
Basic earnings per share $0.56 $0.55 $0.54 $0.53 $0.53 $0.40 $0.49 $0.48 5.66 $2.18 $1.89 15.34
Diluted earnings per share 0.55 0.55 0.54 0.52 0.52 0.40 0.48 0.48 5.77 2.17 1.88 15.43
Average basic shares outstanding 42,441,588 42,091,164 42,066,168 40,324,475 40,276,441 40,265,941 31,626,059 31,576,275 5.38 41,737,636 35,971,877 16.03
Average diluted shares outstanding 42,636,325 42,310,358 42,303,626 40,559,145 40,539,151 40,518,413 31,865,172 31,815,710 5.17 41,962,907 36,227,439 15.83
Common shares outstanding 44,332,273 42,102,224 42,085,690 40,373,753 40,293,291 40,268,455 31,644,706 31,604,937 10.02 44,332,273 40,293,291 10.02
Cash dividend per common share $0.18 $0.18 $0.18 $0.17 $0.17 $0.17 $0.17 $0.17 5.88 $0.71 $0.68 4.41
Performance ratios
------------------
Return on average shareholders' equity 8.14% 8.12% 8.21% 8.12% 8.12% 6.33% 8.42% 8.59% 8.15% 7.76%
Return on average tangible shareholders' equity (1) 14.90% 15.15% 15.57% 15.58% 15.84% 12.20% 14.89% 15.45% 15.28% 14.50%
Return on average assets 1.09% 1.08% 1.08% 1.07% 1.06% 0.81% 1.06% 1.06% 1.08% 0.99%
Return on average tangible assets (2) 1.22% 1.20% 1.20% 1.20% 1.19% 0.93% 1.17% 1.18% 1.20% 1.11%
Net interest margin (FTE) 4.24% 4.15% 4.29% 4.21% 4.33% 4.09% 4.17% 4.02% 4.22% 4.16%
Yield on earning assets (FTE) 4.66% 4.54% 4.66% 4.57% 4.65% 4.42% 4.57% 4.45% 4.61% 4.52%
Cost of funding 0.42% 0.40% 0.38% 0.37% 0.32% 0.33% 0.41% 0.43% 0.39% 0.37%
Average earning assets to average assets 87.10% 86.82% 86.59% 86.21% 86.07% 86.64% 87.79% 87.49% 86.69% 86.89%
Average loans to average deposits 88.89% 89.40% 87.73% 87.39% 86.22% 83.63% 81.93% 81.44% 88.38% 83.51%
Noninterest income (less securities gains/
losses) to average assets 1.39% 1.78% 1.62% 1.69% 1.58% 1.61% 1.56% 1.52% 1.62% 1.57%
Noninterest expense (less debt prepayment penalties/
merger-related expenses) to average
assets 3.21% 3.44% 3.49% 3.48% 3.46% 3.43% 3.40% 3.26% 3.40% 3.40%
Net overhead ratio 1.82% 1.66% 1.87% 1.79% 1.88% 1.82% 1.84% 1.74% 1.78% 1.83%
Efficiency ratio (FTE) (4) 61.63% 62.46% 63.91% 63.86% 63.45% 64.73% 63.53% 62.94% 62.96% 63.74%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q4 2016 - For the Year Ending
2016 2015 Q4 2015 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First Percent Percent
Average balances Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
---------------- ------- ------- ------- ------- ------- ------- ------- ------- -------- ---- ----
Total assets $8,591,795 $8,562,199 $8,541,818 $7,961,700 $7,898,803 $7,897,769 $5,847,539 $5,821,758 8.77 $8,416,509 $6,874,983 22.42
Earning assets 7,483,221 7,433,461 7,396,283 6,863,905 6,798,474 6,842,452 5,133,567 5,093,224 10.07 7,296,296 5,974,001 22.13
Securities 1,034,269 1,045,905 1,111,831 1,103,504 1,117,322 1,143,577 999,962 989,743 (7.43) 1,073,611 1,063,222 0.98
Mortgage loans held for sale 184,653 241,314 306,011 217,200 268,096 398,480 87,435 50,918 (31.12) 237,216 202,368 17.22
Loans, net of unearned 6,147,007 6,048,017 5,897,650 5,482,167 5,341,943 5,223,273 3,978,514 3,969,243 15.07 5,895,955 4,633,635 27.24
Intangibles 495,404 497,064 499,503 473,852 473,996 449,042 295,441 296,682 4.52 491,530 379,469 29.53
Noninterest-bearing deposits $1,564,150 $1,510,309 $1,477,380 $1,316,495 $1,323,467 $1,272,714 $969,770 $932,011 18.19 $1,467,881 $1,125,969 30.37
Interest-bearing deposits 5,351,354 5,255,102 5,245,406 4,956,983 4,872,432 4,972,717 3,886,199 3,941,863 9.83 5,203,437 4,422,371 17.66
Total deposits 6,915,505 6,765,411 6,722,786 6,273,478 6,195,899 6,245,431 4,855,969 4,873,874 11.61 6,671,318 5,548,340 20.24
Borrowed funds 412,589 550,222 594,459 539,078 568,548 556,269 204,884 168,758 (27.43) 523,812 376,208 39.23
Shareholders' equity 1,155,749 1,135,073 1,121,298 1,050,668 1,033,692 1,016,143 733,158 719,687 11.81 1,116,038 876,915 27.27
Q4 2016 - As of
2016 2015 Q4 2015 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First Percent Percent
Balances at period end Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
---------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Total assets 8,699,851 8,542,471 8,529,566 8,146,229 7,926,496 7,910,963 5,899,190 5,881,849 9.76 8,699,851 7,926,496 9.76
Earning assets 7,556,760 7,409,068 7,396,888 7,045,179 6,778,485 6,810,285 5,186,419 5,168,498 11.48 7,556,760 6,778,485 11.48
Securities 1,030,530 1,039,957 1,063,592 1,101,820 1,105,205 1,139,553 965,290 1,016,394 (6.76) 1,030,530 1,105,205 (6.76)
Mortgage loans held for sale 181,053 189,965 276,782 298,365 225,254 317,681 108,023 102,780 (19.62) 181,053 225,254 (19.62)
Loans not acquired 4,710,385 4,526,026 4,292,549 4,074,413 3,830,434 3,607,005 3,407,925 3,274,314 22.97 4,710,385 3,830,434 22.97
Loans acquired and covered by FDIC loss-share agreements - 30,533 42,171 44,989 93,142 100,839 121,626 125,773 (100.00) - 93,142 (100.00)
Loans acquired and not covered by FDIC loss-share agreements 1,489,137 1,548,674 1,630,709 1,453,328 1,489,886 1,570,116 507,653 553,574 (0.05) 1,489,137 1,489,886 (0.05)
Total loans 6,199,522 6,105,233 5,965,429 5,572,730 5,413,462 5,277,960 4,037,204 3,953,661 14.52 6,199,522 5,413,462 14.52
Intangibles 494,608 496,233 497,917 476,539 474,682 474,830 294,808 296,053 4.20 494,608 474,682 4.20
Noninterest-bearing deposits 1,561,357 1,514,820 1,459,383 1,384,503 1,278,337 1,303,884 972,672 959,351 22.14 1,561,357 1,278,337 22.14
Interest-bearing deposits 5,497,780 5,302,978 5,243,104 5,046,874 4,940,265 4,930,677 3,917,772 3,983,418 11.29 5,497,780 4,940,265 11.29
Total deposits 7,059,137 6,817,798 6,702,487 6,431,377 6,218,602 6,234,561 4,890,444 4,942,769 13.52 7,059,137 6,218,602 13.52
Borrowed funds 312,135 469,580 588,650 561,671 570,496 551,740 219,089 162,313 (45.29) 312,135 570,496 (45.29)
Shareholders' equity 1,232,883 1,142,247 1,124,256 1,053,178 1,036,818 1,024,930 730,976 723,196 18.91 1,232,883 1,036,818 18.91
Market value per common share $42.22 $33.63 $32.33 $32.91 $34.41 $32.85 $32.60 $30.05 22.70 $42.22 34.41 22.70
Book value per common share 27.81 27.13 26.71 26.09 25.73 25.45 23.10 22.88 8.08 27.81 25.73 8.08
Tangible book value per common share 16.65 15.34 14.88 14.28 13.95 13.66 13.78 13.52 19.35 16.65 13.95 19.35
Shareholders' equity to assets (actual) 14.17% 13.37% 13.18% 12.93% 13.08% 12.96% 12.39% 12.30% 14.17% 13.08%
Tangible capital ratio (3) 9.00% 8.03% 7.80% 7.52% 7.54% 7.40% 7.78% 7.65% 9.00% 7.54%
Leverage ratio 10.59% 9.38% 9.18% 9.19% 9.16% 8.95% 9.89% 9.74% 10.59% 9.16%
Common equity tier 1 capital ratio 11.47% 10.16% 10.12% 9.88% 9.99% 9.92% 10.45% 10.35% 11.48% 9.99%
Tier 1 risk-based capital ratio 12.86% 11.57% 11.55% 11.38% 11.51% 11.46% 12.52% 12.47% 12.86% 11.51%
Total risk-based capital ratio 15.03% 13.84% 12.31% 12.17% 12.32% 12.27% 13.55% 13.51% 15.03% 12.32%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q4 2016 - As of
2016 2015 Q4 2015 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First Percent Percent
Loans not acquired by category Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
------------------------------ ------- ------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Commercial, financial, agricultural $589,290 $554,151 $530,258 $520,463 $485,407 $450,688 $437,181 $418,752 21.40 $589,290 $485,407 21.40
Lease financing 46,841 45,510 43,116 41,937 34,815 24,698 17,633 11,560 34.54 46,841 34,815 34.54
Real estate - construction 483,926 415,934 381,690 325,188 291,701 268,805 212,071 200,966 65.90 483,926 291,701 65.90
Real estate - 1-4 family mortgages 1,422,543 1,388,066 1,328,948 1,263,879 1,204,228 1,128,556 1,073,816 1,025,264 18.13 1,422,543 1,204,228 18.13
Real estate - commercial mortgages 2,075,137 2,030,626 1,918,778 1,836,053 1,729,049 1,653,534 1,589,969 1,542,706 20.02 2,075,137 1,729,049 20.02
Installment loans to individuals 92,648 91,739 89,759 86,893 85,234 80,724 77,255 75,066 8.70 92,648 85,234 8.70
Loans, net of unearned $4,710,385 $4,526,026 $4,292,549 $4,074,413 $3,830,434 $3,607,005 $3,407,925 $3,274,314 22.97 $4,710,385 $3,830,434 22.97
Loans acquired and covered by FDIC loss-share agreements
--------------------------------------------------------
Commercial, financial, agricultural $ - $14 $607 $624 $2,406 $2,467 $3,726 $3,917 (100.00) $ - $2,406 (100.00)
Lease financing - - - - - - - - - - - -
Real estate - construction - - 83 86 130 137 - - (100.00) - 130 (100.00)
Real estate - 1-4 family mortgages - 30,304 34,640 36,350 45,988 48,779 40,333 42,758 (100.00) - 45,988 (100.00)
Real estate - commercial mortgages - 180 6,790 7,870 44,550 49,382 77,536 79,064 (100.00) - 44,550 (100.00)
Installment loans to individuals - 35 51 59 68 74 31 34 (100.00) - 68 (100.00)
--- --- ---
Loans, net of unearned $ - $30,533 $42,171 $44,989 $93,142 $100,839 $121,626 $125,773 (100.00) $ - $93,142 (100.00)
Loans acquired and not covered by FDIC loss-share agreements
------------------------------------------------------------
Commercial, financial, agricultural $128,200 $139,961 $152,071 $133,847 $149,024 $167,966 $39,652 $52,119 (13.97) $128,200 $149,024 (13.97)
Lease financing - - - - - - - - - - - -
Real estate - construction 68,753 71,704 70,958 52,300 65,834 70,428 505 483 4.43 68,753 65,834 4.43
Real estate - 1-4 family mortgages 452,447 452,274 485,458 477,266 485,107 485,170 161,765 171,433 (6.73) 452,447 485,107 (6.73)
Real estate - commercial mortgages 823,758 864,825 898,108 763,587 760,130 813,973 295,484 317,224 8.37 823,758 760,130 8.37
Installment loans to individuals 15,979 19,910 24,114 26,328 29,791 32,579 10,247 12,315 (46.36) 15,979 29,791 (46.36)
Loans, net of unearned $1,489,137 $1,548,674 $1,630,709 $1,453,328 $1,489,886 $1,570,116 $507,653 $553,574 (0.05) $1,489,137 $1,489,886 (0.05)
Asset quality data
------------------
Assets not acquired:
Nonaccrual loans $11,273 $12,454 $10,591 $11,690 $13,645 $14,522 $15,514 $17,719 (17.38) $11,273 $13,645 (17.38)
Loans 90 past due or more 2,079 2,315 1,428 2,495 1,326 647 5,647 1,193 56.79 2,079 1,326 56.79
----- ----- ----- ----- ----- --- ----- ----- ----- -----
Nonperforming loans 13,352 14,769 12,019 14,185 14,971 15,169 21,161 18,912 (10.81) 13,352 14,971 (10.81)
Other real estate owned 5,929 8,429 9,575 12,810 12,987 13,936 14,967 16,735 (54.35) 5,929 12,987 (54.35)
Nonperforming assets not acquired $19,281 $23,198 $21,594 $26,995 $27,958 $29,105 $36,128 $35,647 (31.04) $19,281 $27,958 (31.04)
======= ======= ======= =======
Assets acquired and subject to loss share:
Nonaccrual loans $ - $1,628 $2,060 $2,708 $3,319 $3,270 $19,487 $18,040 (100.00) $ - $3,319 (100.00)
Loans 90 past due or more - 786 2,076 4,343 3,609 4,143 - - (100.00) - 3,609 (100.00)
--- --- ----- ----- ----- ----- --- --- --- -----
Nonperforming loans subject to loss share - 2,414 4,136 7,051 6,928 7,413 19,487 18,040 (100.00) - 6,928 (100.00)
Other real estate owned - 926 2,618 1,373 2,818 3,183 3,853 4,325 (100.00) - 2,818 (100.00)
Nonperforming assets acquired and subject to loss share $ - $3,340 $6,754 $8,424 $9,746 $10,596 $23,340 $22,365 (100.00) $ - $9,746 (100.00)
======================= ====== ====== ====== ====== ======= ======= ======= ====================== ======
Assets acquired and not subject to loss share:
Nonaccrual loans $11,347 $12,105 $13,312 $12,368 $12,070 $15,796 $1,085 $1,627 (5.99) $11,347 $12,070 (5.99)
Loans 90 past due or more 10,815 12,619 13,650 10,805 11,458 8,824 2,523 9,636 (5.61) 10,815 11,458 (5.61)
------ ------ ------ ------ ------ ----- ----- ----- ------ ------
Nonperforming loans 22,162 24,724 26,962 23,173 23,528 24,620 3,608 11,263 (5.81) 22,162 23,528 (5.81)
Other real estate owned 17,370 16,973 17,146 19,051 19,597 19,215 8,244 10,626 (11.36) 17,370 19,597 (11.36)
------
Nonperforming assets acquired $39,532 $41,697 $44,108 $42,224 $43,125 $43,835 $11,852 $21,889 (8.33) $39,532 $43,125 (8.33)
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Net loan charge-offs (recoveries) $4,837 $824 $191 $1,378 $1,364 $588 $1,588 $1,062 254.62 $7,230 $4,602 57.11
Allowance for loan losses 42,737 45,924 44,098 42,859 42,437 42,051 41,888 42,302 0.71 42,737 $42,437 0.71
Annualized net loan charge-offs / average loans 0.31% 0.05% 0.01% 0.10% 0.10% 0.04% 0.16% 0.11% 0.12% 0.10%
Nonperforming loans / total loans* 0.57% 0.69% 0.72% 0.80% 0.84% 0.89% 1.10% 1.22% 0.57% 0.84%
Nonperforming assets / total assets* 0.68% 0.80% 0.85% 0.95% 1.02% 1.06% 1.21% 1.36% 0.68% 1.02%
Allowance for loan losses / total loans* 0.69% 0.75% 0.74% 0.77% 0.78% 0.80% 1.04% 1.07% 0.69% 0.78%
Allowance for loan losses / nonperforming loans* 120.34% 109.59% 102.28% 96.51% 93.42% 89.09% 94.65% 87.74% 120.34% 93.42%
Nonperforming loans / total loans** 0.28% 0.33% 0.28% 0.35% 0.39% 0.42% 0.62% 0.58% 0.28% 0.39%
Nonperforming assets / total assets** 0.22% 0.27% 0.25% 0.33% 0.35% 0.37% 0.61% 0.61% 0.22% 0.35%
Allowance for loan losses / total loans** 0.91% 1.01% 1.03% 1.05% 1.11% 1.17% 1.23% 1.29% 0.91% 1.11%
Allowance for loan losses / nonperforming loans** 320.08% 310.95% 366.90% 302.14% 283.46% 277.22% 197.95% 223.68% 320.08% 283.46%
*Based on all assets (including acquired assets)
**Excludes all assets acquired
RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
------------------ -------------------
December 31, 2016 September 30, 2016 December 31, 2015 December 31, 2016 December 31, 2015
----------------- ------------------ ----------------- ----------------- -----------------
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate Balance Expense Rate Balance Expense Rate
------- ------- ---- ------- ------- ---- ------- ------- ---- ------- ------- ---- ------- ------- ----
Assets
Interest-earning assets:
Loans (1) $6,331,660 $79,894 5.02% $6,289,331 $77,154 4.88% $5,610,039 $71,144 5.03% $6,133,171 $303,830 4.95% $4,836,002 $237,408 4.91%
Securities:
Taxable 688,268 3,430 1.98 695,589 3,418 1.95 761,145 4,110 2.14 721,661 15,305 2.12 732,016 15,946 2.18
Tax-exempt 346,002 4,089 4.70 350,316 4,082 4.64 356,177 4,364 4.86 351,950 16,555 4.70 331,206 16,709 5.04
------- ----- ------- ----- ------- ----- ------- ------ ------- ------
Total securities 1,034,270 7,519 2.89 1,045,905 7,500 2.85 1,117,322 8,474 3.01 1,073,611 31,860 2.97 1,063,222 32,655 3.07
Interest-bearing balances with banks 117,292 151 0.51 98,225 132 0.53 71,113 61 0.34 89,514 459 0.51 74,776 215 0.29
------- --- ------ --- ------ --- ------ --- ------ ---
Total interest-earning assets 7,483,222 87,564 4.66 7,433,461 84,786 4.54 6,798,474 79,679 4.65 7,296,296 336,149 4.61 5,974,000 270,278 4.52
Cash and due from banks 118,851 124,794 133,526 130,360 102,417
Intangible assets 495,404 497,064 473,996 491,530 379,469
FDIC loss-share indemnification asset 2,693 4,816 7,691 4,961 8,928
Other Assets 491,625 502,064 485,116 493,362 410,169
------- ------- ------- ------- -------
Total Assets 8,591,795 8,562,199 7,898,803 8,416,509 6,874,983
========= ========= ========= ========= =========
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand 3,184,949 1,597 0.20 3,106,568 1,515 0.19 2,860,182 1,256 0.17 3,090,495 5,874 0.19 2,596,362 4,721 0.18
Savings deposits 538,323 96 0.07 528,794 94 0.07 497,648 89 0.07 525,498 372 0.07 433,838 320 0.07
Time deposits 1,628,082 3,145 0.77 1,619,740 3,029 0.74 1,514,602 2,030 0.53 1,587,444 11,610 0.73 1,392,171 8,673 0.62
--------- ----- --------- ----- --------- ----- --------- ------ --------- -----
Total interest-bearing deposits 5,351,354 4,838 0.36 5,255,102 4,638 0.35 4,872,432 3,375 0.27 5,203,437 17,856 0.34 4,422,371 13,714 0.31
Borrowed Funds 412,589 2,952 2.85 550,222 2,663 1.93 568,548 2,062 1.44 523,812 10,291 1.96 376,208 7,950 2.11
------- ----- ------- ----- ------- ----- ------- ------ ------- -----
Total interest-bearing liabilities 5,763,943 7,790 0.54 5,805,324 7,301 0.50 5,440,980 5,437 0.40 5,727,249 28,147 0.49 4,798,579 21,664 0.45
Noninterest-bearing deposits 1,564,150 1,510,309 1,323,467 1,467,881 1,125,969
Other liabilities 107,953 111,493 100,664 105,341 73,520
Shareholders' equity 1,155,749 1,135,073 1,033,692 1,116,038 876,915
Total liabilities and shareholders' equity 8,591,795 8,562,199 7,898,803 8,416,509 6,874,983
========= ========= ========= ========= =========
Net interest income/net interest margin $79,774 4.24% $77,485 4.15% $74,242 4.33% $308,002 4.22% $248,614 4.16%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
RECONCILIATION OF GAAP TO NON-GAAP
----------------------------------
For the Year Ending
2016 2015 December 31,
---- ---- ------------
Fourth Third Second First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2016 2015
------- ------- ------- ------- ------- ------- ------- ------- ---- ----
Net income (GAAP) $23,635 $23,179 $22,900 $21,216 $21,160 $16,220 $15,394 $15,240 $90,930 $68,014
Amortization of intangibles, net of tax 1,094 1,119 1,171 1,134 1,186 1,220 858 873 4,518 4,138
Tangible net income (non-GAAP) $24,729 $24,298 $24,071 $22,350 $22,346 $17,440 $16,252 $16,113 $95,448 $72,152
Average shareholders' equity (GAAP) $1,155,749 $1,135,073 $1,121,298 $1,050,668 $1,033,692 $1,016,143 $733,158 $719,687 $1,116,038 $876,915
Intangibles 495,404 497,064 499,503 473,852 473,996 449,042 295,441 296,682 491,530 379,469
Average tangible shareholders' equity (non-GAAP) $660,345 $638,009 $621,795 $576,816 $559,696 $567,101 $437,717 $423,005 $624,508 $497,446
Average total assets (GAAP) $8,591,795 $8,562,199 $8,541,818 $7,961,700 $7,898,803 $7,897,769 $5,847,539 $5,821,758 $8,416,509 $6,874,983
Intangibles 495,404 497,064 499,503 473,852 473,996 449,042 295,441 296,682 491,530 379,469
Average tangible assets (non-GAAP) $8,096,392 $8,065,135 $8,042,315 $7,487,848 $7,424,807 $7,448,727 $5,552,098 $5,525,076 $7,924,979 $6,495,514
Actual shareholders' equity (GAAP) $1,232,883 $1,142,247 $1,124,256 $1,053,178 $1,036,818 $1,024,930 $730,976 $723,196 $1,232,883 $1,036,818
Intangibles 494,608 496,233 497,917 476,539 474,682 474,830 294,808 296,053 494,608 474,682
Actual tangible shareholders' equity (non-GAAP) $738,275 $646,014 $626,339 $576,639 $562,136 $550,100 $436,168 $427,143 $738,275 $562,136
Actual total assets (GAAP) $8,699,851 $8,542,471 $8,529,566 $8,146,229 $7,926,496 $7,910,963 $5,899,190 $5,881,849 $8,699,851 $7,926,496
Intangibles 494,608 496,233 497,917 476,539 474,682 474,830 294,808 296,053 494,608 474,682
Actual tangible assets (non-GAAP) $8,205,243 $8,046,238 $8,031,649 $7,669,690 $7,451,814 $7,436,133 $5,604,382 $5,585,796 $8,205,243 $7,451,814
(1) Return on Average Equity
Return on (average) shareholders' equity (GAAP) 8.14% 8.12% 8.21% 8.12% 8.12% 6.33% 8.42% 8.59% 8.15% 7.76%
Effect of adjustment for intangible
assets 6.76% 7.03% 7.36% 7.46% 7.72% 5.87% 6.47% 6.86% 7.14% 6.75%
Return on average tangible shareholders' equity (non-GAAP) 14.90% 15.15% 15.57% 15.58% 15.84% 12.20% 14.89% 15.45% 15.28% 14.50%
(2) Return on Average Assets
Return on (average) assets (GAAP) 1.09% 1.08% 1.08% 1.07% 1.06% 0.81% 1.06% 1.06% 1.08% 0.99%
Effect of adjustment for intangible
assets 0.12% 0.12% 0.13% 0.13% 0.13% 0.11% 0.12% 0.12% 0.12% 0.12%
Return on average tangible assets (non-GAAP) 1.22% 1.20% 1.20% 1.20% 1.19% 0.93% 1.17% 1.18% 1.20% 1.11%
(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP) 14.17% 13.37% 13.18% 12.93% 13.08% 12.96% 12.39% 12.30% 14.17% 13.08%
Effect of adjustment for intangible
assets 5.17% 5.34% 5.38% 5.41% 5.54% 5.56% 4.61% 4.65% 5.17% 5.54%
Tangible capital ratio (non-GAAP) 9.00% 8.03% 7.80% 7.52% 7.54% 7.40% 7.78% 7.65% 9.00% 7.54%
CALCULATION OF EFFICIENCY RATIO
-------------------------------
Interest income (FTE) $87,564 $84,786 $85,783 $78,009 $79,679 $76,242 $58,516 $55,910 $336,149 $270,278
Interest expense 7,790 7,301 6,851 6,205 5,437 5,688 5,155 5,385 28,147 21,665
Net Interest income (FTE) $79,774 $77,485 $78,932 $71,804 $74,242 $70,554 $53,361 $50,525 $308,002 $248,613
------- ------- ------- ------- ------- ------- ------- ------- -------- --------
Total noninterest income $30,071 $38,272 $35,586 $33,302 $31,442 $32,079 $22,880 $21,869 $137,231 $108,270
Securities gains (losses) - - 1,257 (71) - - 96 - 1,186 96
Total noninterest income $30,071 $38,272 $34,329 $33,373 $31,442 $32,079 $22,784 $21,869 $136,045 $108,174
------- ------- ------- ------- ------- ------- ------- ------- -------- --------
Total Income (FTE) $109,845 $115,757 $113,261 $105,177 $105,684 $102,633 $76,145 $72,394 $444,047 $356,787
======== ======== ======== ======== ======== ======== ======= ======= ======== ========
Total noninterest expense $71,374 $76,468 $77,259 $69,814 $70,734 $75,979 $51,083 $47,318 $294,915 $245,114
Amortization of intangibles 1,624 1,684 1,742 1,697 1,752 1,803 1,239 1,275 6,747 6,069
Merger-related expenses - 268 2,807 948 1,923 7,746 1,467 478 4,023 11,614
Debt extinguishment penalty - 2,210 329 - - - - - 2,539 -
Loss share termination 2,053 - - - - - - - 2,053 -
Total noninterest expense $67,697 $72,306 $72,381 $67,169 $67,059 $66,430 $48,377 $45,565 $279,553 $227,431
======= ======= ======= ======= ======= ======= ======= ======= ======== ========
(4) Efficiency Ratio 61.63% 62.46% 63.91% 63.86% 63.45% 64.73% 63.53% 62.94% 62.96% 63.74%
Contact: For Media: For Financials:
John Oxford Kevin Chapman
First Vice President Executive Vice President
Director of Corp Communication Chief Financial Officer
(662) 680-1219 (662) 680-1450
joxford@renasant.com kchapman@renasant.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/renasant-corporation-announces-2016-fourth-quarter-and-year-end-results-300392474.html
SOURCE Renasant Corporation
