RENASANT CORPORATION TUPELO, Miss., Oct. 17, 2017 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced earnings results for the third quarter of 2017. Net income for the third quarter of 2017 was approximately $26.4 million, up 13.99%, as compared to $23.2 million for the third quarter of 2016. Basic and diluted earnings per share ("EPS") were $0.54 and $0.53, respectively, for the third quarter of 2017, as compared to basic and diluted EPS of $0.55 for the third quarter of 2016.
Net income for the nine months ending September 30, 2017, was $75.7 million, an increase of 12.46%, as compared to $67.3 million for the same period in 2016. Basic and diluted EPS were $1.64 for the first nine months of 2017, as compared to basic and diluted EPS of $1.62 and $1.61, respectively, for the same period in 2016.
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 (in thousands):
Three months ended Three months ended
September 30, 2017 September 30, 2016
Pre-tax After-tax Impact to Pre-tax After-tax Impact to
Diluted Diluted
EPS EPS
--- ---
Merger and conversion expenses $6,266 $4,075 $0.09 $268 $178 $ -
Debt prepayment penalty - - - 2,210 1,468 0.03
Nine months ended Nine months ended
September 30, 2017 September 30, 2016
Pre-tax After-tax Impact to Pre-tax After-tax Impact to
Diluted Diluted
EPS EPS
--- ---
Merger and conversion expenses $9,655 $6,459 $0.14 $4,023 $2,689 $0.07
Debt prepayment penalty 205 137 - 2,539 1,697 0.05
The Company's balance sheet and results of operations as of and for the three months ended September 30, 2017, include the impact of the Company's acquisition of Metropolitan BancGroup, Inc. ("Metropolitan"), which was completed on July 1, 2017. As of the acquisition date, Metropolitan operated eight offices in Nashville and Memphis, Tennessee and the Jackson, Mississippi MSA and had approximately $1.4 billion in assets, which included approximately $970 million in total loans and approximately $940 million in total deposits. The assets acquired and liabilities assumed have been recorded at estimated fair value and are subject to change pending finalization of all valuations.
"We are pleased to announce our results for a strong third quarter of 2017. Contributing to our record net income for the quarter was annualized linked quarter non-acquired loan growth of 18.4% coupled with the contribution to our operations resulting from our completed acquisition of Metropolitan. A continued focus on expense containment resulted in the achievement of an efficiency ratio below 60 percent, which has been a key long-term objective for Renasant. With the successful conversion of Metropolitan core systems and a smooth integration of our team members, we believe we are well positioned for a strong finish to 2017," said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw.
Profitability Metrics
The following table presents the Company's profitability metrics for the three and nine months ended September 30, 2017, including and excluding the impact of after-tax merger and conversion expenses and, for the nine-month period, debt prepayment penalties:
Three Months Ended Nine Months Ended
September 30, 2017 September 30, 2017
As Reported Excluding Merger As Reported Excluding Merger
and Conversion
and Conversion Expenses and Debt
Expenses Prepayment
Penalties
---------
Return on average assets 1.02% 1.18% 1.09% 1.19%
Return on average tangible assets 1.13% 1.30% 1.21% 1.31%
Return on average equity 7.01% 8.09% 7.58% 8.24%
Return on average tangible equity 12.74% 14.62% 13.30% 14.41%
The above profitability metrics, excluding return on average assets and return on average equity as reported, are non-GAAP financial measures. A reconciliation of these financial measures from GAAP to non-GAAP is included in the table at the end of this release.
Highlights from the third quarter of 2017 and the nine months ended September 30, 2017 include the following:
-- Total assets were $10.3 billion at September 30, 2017, as compared to
$8.7 billion at December 31, 2016.
-- Loans not purchased increased to $5.3 billion at September 30, 2017,
from $4.7 billion at December 31, 2016. For the third quarter of 2017,
the yield on total loans was 4.88% compared to 5.03% for the second
quarter of 2017 and 4.94% for the third quarter of 2016. For the nine
months ended September 30, 2017, the yield on total loans was 4.91%
compared to 4.99% for the same time period in 2016. The following tables
reconcile the reported loan yield to the adjusted loan yield excluding
the impact from interest income collected on problem loans and purchase
accounting adjustments on purchased loans for the periods presented (in
thousands):
Three Months Ended
September 30, June 30, September 30,
2017 2017 2016
---- ---- ----
Taxable equivalent interest income on loans (as reported) $90,693 $78,857 $75,128
Interest income collected (foregone) on problem loans 963 2,734 1,019
Accretable yield recognized on purchased loans(1) 6,259 5,410 6,866
----- ----- -----
Interest income on loans (adjusted) $83,471 $70,713 $67,243
Average loans $7,375,410 $6,293,497 $6,048,017
Loan yield, as reported 4.88% 5.03% 4.94%
Loan yield, adjusted 4.49% 4.51% 4.42%
(1) Includes additional interest
income recognized in connection
with the acceleration of
paydowns and payoffs from
purchased loans of $2,770,
$2,674 and $3,317 for the three
months ended September 30,
2017, June 30, 2017, and
September 30, 2016,
respectively, which increased
loan yield by 15 basis points,
17 basis points and 12 basis
points for the same periods,
respectively.
Nine Months Ended
September 30, September 30,
2017 2016
---- ----
Taxable equivalent interest income on loans (as reported) $243,260 $217,066
Interest income collected (foregone) on problem loans 4,264 2,610
Accretable yield recognized on purchased loans(1) 17,273 21,135
------ ------
Interest income on loans (adjusted) $221,723 $193,321
Average loans $6,626,848 $5,811,350
Loan yield, as reported 4.91% 4.99%
Loan yield, adjusted 4.47% 4.44%
(1) Includes additional interest
income recognized in connection
with the acceleration of
paydowns and payoffs from
purchased loans of $8,185 and
$9,616 for the nine months
ended September 30, 2017, and
September 30, 2016,
respectively, which increased
loan yield by 17 basis points
and 22 basis points for the
same periods, respectively.
-- Total deposits increased to $8.1 billion at September 30, 2017, from
$7.1 billion at December 31, 2016. Noninterest-bearing deposits averaged
$1.7 billion, or 22.40% of average deposits, for the first nine months
of 2017, compared to $1.4 billion, or 21.79% of average deposits, for
the same period in 2016. For the third quarter of 2017, the cost of
total deposits was 33 basis points, as compared to 30 basis points for
the second quarter of 2017 and 27 basis points for the third quarter of
2016. The cost of total deposits was 31 basis points for the nine months
ending September 30, 2017, as compared to 26 basis points over the same
time period in 2016.
-- Net interest income was $90.0 million for the third quarter of 2017, as
compared to $79.6 million for the second quarter of 2017 and $75.7
million for the third quarter of 2016. Net interest margin was 4.08% for
the third quarter of 2017, as compared to 4.27% for the second quarter
of 2017 and 4.15% for the third quarter of 2016. The following table
reconciles reported net interest margin to adjusted net interest margin
excluding the impact from interest income collected on problem loans and
purchase accounting adjustments on purchased loans for the periods
presented (in thousands):
Three Months Ended
September 30, June 30, September 30,
2017 2017 2016
---- ---- ----
Taxable equivalent net interest income (as reported) $91,935 $81,453 $77,483
Interest income collected (foregone) on problem loans 963 2,734 1,019
Accretable yield recognized on purchased loans (1) 6,259 5,410 6,866
----- ----- -----
Net interest income (adjusted) $84,713 $73,309 $69,598
Average earning assets $8,944,067 $7,657,849 $7,433,461
Net interest margin, as reported 4.08% 4.27% 4.15%
Net interest margin, adjusted 3.76% 3.84% 3.72%
(1) Includes additional interest
income recognized in connection
with the acceleration of
paydowns and payoffs from
purchased loans of $2,770,
$2,674 and $3,317 for the three
months ended September 30,
2017, June 30, 2017, and
September 30, 2016,
respectively, which increased
net interest margin by 12 basis
points, 14 basis points and 18
basis points for the same
periods, respectively.
-- Net interest income was $243.6 million for the first nine months of
2017, as compared to $222.9 million for the same period in 2016. Net
interest margin was 4.12% for the first nine months of 2017, as compared
to 4.21% for the same period in 2016. The following table reconciles
reported net interest margin to adjusted net interest margin excluding
the impact from interest income collected on problem loans and purchase
accounting adjustments on purchased loans for the periods presented (in
thousands):
Nine Months Ended
September 30, September 30,
2017 2016
---- ----
Taxable equivalent net interest income (as reported) $249,295 $228,228
Interest income collected (foregone) on problem loans 4,264 2,610
Accretable yield recognized on purchased loans (1) 17,273 21,135
------ ------
Net interest income (adjusted) $227,758 $204,483
Average earning assets $8,094,838 $7,233,302
Net interest margin, as reported 4.12% 4.21%
Net interest margin, adjusted 3.76% 3.78%
(1) Includes additional interest
income recognized in connection
with the acceleration of
paydowns and payoffs from
purchased loans of $8,185 and
$9,616 for the nine months
ended September 30, 2017, and
September 30, 2016,
respectively, which increased
net interest margin by 14 basis
points and 18 basis points for
the same periods, respectively.
-- Noninterest income for the third quarter of 2017 was $33.4 million, as
compared to $38.3 million for the third quarter of 2016. Noninterest
income for the first nine months of 2017 was $99.7 million, as compared
$107.2 million for the same period in 2016. Mortgage banking income for
the third quarter of 2017 was $10.6 million, compared to $15.8 million
for the third quarter of 2016. Mortgage banking income for the first
nine months of 2017 was $33.5 million, compared to $41.2 million for the
same period in 2016. The decrease is driven by lower mortgage loan
originations in the current year when compared to the prior year due to
a reduction in the refinancing of mortgage loans as interest rates have
risen. This impact is compounded by margin compression as a result of
increased competition due to a reduction in housing supply in a number
of our markets. The decrease in mortgage banking income was slightly
offset by the increase in service charges on deposit accounts and fees
and commission on loans and deposits. The addition of Metropolitan
coupled with growth in fee income on legacy Renasant loan and deposit
products contributed to the growth in service charges on deposits and
fees and commissions on loans and deposits for the first nine months of
2017 compared to the same period in 2016.
-- Noninterest expense was $80.7 million for the third quarter of 2017, as
compared to $76.5 million for the third quarter of 2016. Noninterest
expense for the first nine months of 2017 was $224.8 million, as
compared $223.5 million for the same period in 2016. Excluding
nonrecurring charges for merger and conversion expenses and debt
prepayment penalties, noninterest expense remained relatively flat when
compared to the third quarter of 2016. This is primarily attributable to
a decrease in data processing costs, which were realized through
contract renegotiations, and expenses on other real estate owned.
Asset Quality Metrics
Total nonperforming assets were $43.3 million at September 30, 2017, a decrease of $15.5 million from December 31, 2016, and consisted of $25.5 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $17.8 million in other real estate owned ("OREO").
The Company's nonperforming loans and OREO that were purchased in previous acquisitions, including the Metropolitan acquisition (collectively referred to as "purchased nonperforming assets"), were $12.2 million and $13.3 million, respectively, at September 30, 2017, as compared to $22.2 million and $17.4 million, respectively, at December 31, 2016. The purchased 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 focuses on non-purchased nonperforming assets.
-- Excluding purchased loans, nonperforming loans decreased to $13.3
million, or 0.25% of total loans, at September 30, 2017, from $13.4
million, or 0.28% of total loans, at December 31, 2016. These loans were
$14.8 million, or 0.33% of total loans, at September 30, 2016. Early
stage delinquencies, or loans 30-to-89 days past due, as a percentage of
total loans were 0.23% at September 30, 2017 and December 31, 2016, as
compared to 0.22% at September 30, 2016.
-- Excluding purchased OREO, OREO was $4.5 million at September 30, 2017,
as compared to $5.9 million at December 31, 2016, and $8.4 million at
September 30, 2016. OREO sales totaled $2.3 million in the first nine
months of 2017 and $4.2 million in the first nine months of 2016.
-- The allowance for loan losses was 0.60% of total loans at September 30,
2017, as compared to 0.69% at December 31, 2016 and 0.75% at September
30, 2016. The allowance for loan losses was 0.84% of non-purchased loans
at September 30, 2017, as compared to 0.91% at December 31, 2016, and
1.01% at September 30, 2016.
-- Net loan charge-offs were $1.8 million, or 0.02% of average total
loans, for the third quarter of 2017, as compared to $824 thousand,
or 0.01% of average total loans, for the third quarter of 2016.
-- The provision for loan losses was $2.2 million for the third quarter
of 2017, as compared to $2.7 million for the third quarter of 2016.
The provision was $5.4 million for the first nine months of 2017, as
compared to $5.9 million for the same time period in 2016.
Capital Metrics
-- At September 30, 2017, Tier 1 leverage capital ratio was 10.05%, Common
Equity Tier 1 ratio was 11.21%, Tier 1 risk-based capital ratio was
12.25%, and total risk-based capital ratio was 14.29%. All regulatory
ratios exceed the minimums required to be considered "well-capitalized."
-- Tangible common equity ratio was 9.03% at September 30, 2017, as
compared to 9.00% at December 31, 2016.
CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time on Wednesday, October 18, 2017.
The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst171018.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 10113195 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until November 1, 2017.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 113-year-old financial services institution. Renasant has assets of approximately $10.3 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 non-GAAP financial measures. Certain non-GAAP financial measures that the Company uses exclude purchase accounting adjustments and interest income collected (foregone) on problem loans from loan interest income and net interest income when calculating the Company's taxable equivalent loan yields and net interest margin, respectively. The most directly comparable GAAP financial measure is presented with these non-GAAP measures. The Company's management uses these non-GAAP financial measures to evaluate ongoing operating results and to assess ongoing profitability.
Certain other non-GAAP financial measures (namely, 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) adjust GAAP financial measures to exclude intangible assets and certain charges that the Company considers to be non-recurring in nature. 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. Reconciliations of these other 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."
None of the non-GAAP financial information that the Company has included in this release is 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 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.
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q3 2017 - For The Nine Months Ending
2017 2016 Q3 2016 September 30,
---- ---- -------------
Third Second First Fourth Third Second First Percent Percent
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2017 2016 Variance
------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Statement of earnings
---------------------
Interest income - taxable equivalent basis $102,613 $89,429 $83,781 $87,564 $84,784 $85,783 $78,009 21.03 $275,823 $248,585 10.96
Interest income $100,695 $87,579 $81,889 $85,840 $83,032 $84,008 $76,259 21.27 $270,163 $243,299 11.04
Interest expense 10,678 7,976 7,874 7,791 7,301 6,851 6,205 46.25 26,528 20,357 30.31
------ ----- ----- ----- ----- ----- ----- ------ ------
Net interest income 90,017 79,603 74,015 78,049 75,731 77,157 70,054 18.86 243,635 222,942 9.28
Provision for loan losses 2,150 1,750 1,500 1,650 2,650 1,430 1,800 (18.87) 5,400 5,880 (8.16)
----- ----- ----- ----- ----- ----- ----- ----- -----
Net interest income after provision 87,867 77,853 72,515 76,399 73,081 75,727 68,254 20.23 238,235 217,062 9.75
Service charges on deposit accounts 8,676 7,958 7,931 8,163 8,200 7,521 7,991 5.80 24,565 23,712 3.60
Fees and commissions on loans and deposits 5,618 5,470 5,199 4,772 4,921 4,877 4,244 14.16 16,287 14,042 15.99
Insurance commissions and fees 2,365 2,181 1,860 1,951 2,420 2,175 1,962 (2.27) 6,406 6,557 (2.30)
Wealth management revenue 2,963 3,037 2,884 2,849 3,040 2,872 2,891 (2.53) 8,884 8,803 0.92
Securities gains (losses) 57 - - - - 1,257 (71) 100.00 57 1,186 (95.19)
Mortgage banking income 10,616 12,424 10,504 8,262 15,846 13,420 11,915 (33.01) 33,544 41,181 (18.54)
Other 3,118 3,195 3,643 4,258 3,845 3,464 4,370 (18.91) 9,956 11,679 (14.75)
----- ----- ----- ----- ----- ----- ----- ----- ------
Total noninterest income 33,413 34,265 32,021 30,255 38,272 35,586 33,302 (12.70) 99,699 107,160 (6.96)
Salaries and employee benefits 48,530 45,014 42,209 39,966 44,702 45,387 42,393 8.56 135,753 132,482 2.47
Data processing 4,179 3,835 4,234 4,503 4,560 4,502 4,158 (8.36) 12,248 13,220 (7.35)
Occupancy and equipment 9,470 8,814 9,319 8,809 8,830 8,531 8,224 7.25 27,603 25,585 7.89
Other real estate 603 781 532 1,585 1,540 1,614 957 (60.84) 1,916 4,111 (53.39)
Amortization of intangibles 1,766 1,493 1,563 1,624 1,684 1,742 1,697 4.87 4,822 5,123 (5.88)
Merger and conversion related expenses 6,266 3,044 345 - 268 2,807 948 2,238.06 9,655 4,023 140.00
Debt extinguishment penalty - - 205 - 2,210 329 - (100.00) 205 2,539 (91.93)
Loss share termination - - - 2,053 - - - - - - -
Other 9,846 11,860 10,902 13,018 12,674 12,347 11,437 (22.31) 32,608 36,458 (10.56)
----- ------ ------ ------ ------ ------ ------ ------ ------
Total noninterest expense 80,660 74,841 69,309 71,558 76,468 77,259 69,814 5.48 224,810 223,541 0.57
Income before income taxes 40,620 37,277 35,227 35,096 34,885 34,054 31,742 16.44 113,124 100,681 12.36
Income taxes 14,199 11,993 11,255 11,461 11,706 11,154 10,526 21.30 37,447 33,386 12.16
------ ------ ------ ------ ------ ------ ------ ------ ------
Net income $26,421 $25,284 $23,972 $23,635 $23,179 $22,900 $21,216 13.99 $75,677 $67,295 12.46
===
Basic earnings per share $0.54 $0.57 $0.54 $0.56 $0.55 $0.54 $0.53 (1.82) $1.64 $1.62 1.23
Diluted earnings per share 0.53 0.57 0.54 0.55 0.55 0.54 0.52 (3.64) 1.64 1.61 1.86
Average basic shares outstanding 49,316,572 44,415,423 44,364,337 42,441,588 42,091,164 42,066,168 40,324,475 17.17 46,050,250 41,500,407 10.96
Average diluted shares outstanding 49,434,850 44,523,541 44,480,499 42,636,325 42,310,358 42,303,626 40,559,145 16.84 46,167,764 41,729,908 10.63
Common shares outstanding 49,320,225 44,430,335 44,394,707 44,332,273 42,102,224 42,085,690 40,373,753 17.14 49,320,225 42,102,224 17.14
Cash dividend per common share $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 $0.17 - $0.54 $0.53 1.89
Performance ratios
------------------
Return on avg shareholders' equity 7.01% 8.06% 7.80% 8.14% 8.12% 8.21% 8.12% 7.58% 8.15%
Return on avg tangible s/h's equity (1) 12.74% 13.76% 13.48% 14.90% 15.15% 15.57% 15.58% 13.30% 15.42%
Return on avg assets 1.02% 1.16% 1.11% 1.09% 1.08% 1.08% 1.07% 1.09% 1.08%
Return on avg tangible assets (2) 1.13% 1.28% 1.23% 1.22% 1.20% 1.20% 1.20% 1.21% 1.20%
Net interest margin (FTE) 4.08% 4.27% 4.01% 4.24% 4.15% 4.29% 4.21% 4.12% 4.21%
Yield on earning assets (FTE) 4.55% 4.68% 4.43% 4.66% 4.54% 4.66% 4.57% 4.56% 4.59%
Cost of funding 0.49% 0.43% 0.43% 0.42% 0.40% 0.38% 0.37% 0.45% 0.38%
Average earning assets to average assets 87.03% 87.81% 87.55% 87.10% 86.82% 86.59% 86.21% 87.44% 86.55%
Average loans to average deposits 90.96% 88.03% 86.81% 88.89% 89.40% 87.73% 87.39% 88.72% 88.20%
Noninterest income (less securities gains/
losses) to average assets 1.29% 1.58% 1.48% 1.40% 1.78% 1.62% 1.69% 1.44% 1.69%
Noninterest expense (less debt prepayment penalties/
merger-related expenses) to average assets 2.87% 3.30% 3.18% 3.22% 3.44% 3.49% 3.48% 3.10% 3.47%
Net overhead ratio 1.58% 1.72% 1.70% 1.82% 1.66% 1.87% 1.79% 1.66% 1.78%
Efficiency ratio (FTE) (4) 57.97% 60.75% 62.26% 61.69% 62.46% 63.91% 63.86% 60.22% 63.39%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q3 2017 For The Nine Months Ending
2017 2016 Q3 2016 September 30,
---- ---- -------------
Third Second First Fourth Third Second First Percent Percent
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2017 2016 Variance
------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Average Balances
----------------
Total assets $10,277,476 $8,720,660 $8,759,448 $8,591,795 $8,562,199 $8,541,818 $7,961,700 20.03 $9,258,088 $8,357,439 10.78
Earning assets 8,944,067 7,657,849 7,668,582 7,483,222 7,433,461 7,396,283 6,863,905 20.32 8,094,838 7,233,302 11.91
Securities 1,147,157 1,069,244 1,043,697 1,034,270 1,045,905 1,111,831 1,103,504 9.68 1,087,078 1,086,869 0.02
Mortgage loans held for sale 226,512 168,650 112,105 184,583 241,314 306,011 217,200 (6.13) 169,508 254,930 (33.51)
Loans, net of unearned 7,375,410 6,293,497 6,198,705 6,147,077 6,048,017 5,897,650 5,482,167 21.95 6,626,848 5,811,350 14.03
Intangibles 636,977 492,349 493,816 495,404 497,064 499,503 473,852 28.15 541,571 490,225 10.47
Noninterest-bearing deposits $1,849,396 $1,608,467 $1,558,809 $1,564,150 $1,510,309 $1,477,380 $1,316,495 22.45 $1,673,289 $1,435,438 16.57
Interest-bearing deposits 6,259,249 5,540,698 5,581,853 5,351,354 5,255,102 5,245,406 4,956,983 19.11 5,796,415 5,153,588 12.47
Total deposits 8,108,646 7,149,165 7,140,662 6,915,505 6,765,411 6,722,786 6,273,478 19.85 7,469,703 6,589,026 13.37
Borrowed funds 575,816 233,542 282,008 412,589 550,222 594,459 539,078 4.65 364,865 561,294 (35.00)
Shareholders' equity 1,495,594 1,258,935 1,246,903 1,155,749 1,135,073 1,121,298 1,050,668 31.76 1,334,722 1,102,655 21.05
Q3 2017 - As of
2017 2016 Q4 2016 September 30,
---- ---- -------------
Third Second First Fourth Third Second First Percent Percent
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2017 2016 Variance
------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Balances at period end
----------------------
Total assets $10,323,687 $8,872,272 $8,764,711 $8,699,851 $8,542,471 $8,529,566 $8,146,229 18.67 $10,323,687 $8,542,471 20.85
Earning assets 8,943,570 7,763,775 7,690,045 7,556,760 7,409,068 7,396,888 7,045,179 18.35 8,943,570 7,409,068 20.71
Securities 1,150,459 1,076,625 1,044,862 1,030,530 1,039,957 1,063,592 1,101,820 11.64 1,150,459 1,039,957 10.63
Mortgage loans held for sale 207,288 232,398 158,619 177,866 189,965 276,782 298,365 16.54 207,288 189,965 9.12
Loans not purchased 5,293,467 5,058,898 4,834,085 4,713,572 4,526,026 4,292,549 4,074,413 12.30 5,293,467 4,526,026 19.96
Loans purchased & covered by FDIC loss-share agreements - - - - 30,533 42,171 44,989 - - 30,533 (100.00)
Loans purchased & not covered by FDIC loss-share agreements 2,155,141 1,312,109 1,401,720 1,489,137 1,548,674 1,630,709 1,453,328 44.72 2,155,141 1,548,674 39.16
Total loans 7,448,608 6,371,007 6,235,805 6,202,709 6,105,233 5,965,429 5,572,730 20.09 7,448,608 6,105,233 22.00
Intangibles 637,265 491,552 493,045 494,608 496,233 497,917 476,539 28.84 637,265 496,233 28.42
Noninterest-bearing deposits $1,835,300 $1,642,863 $1,579,581 $1,561,357 $1,514,820 $1,459,383 $1,384,503 17.55 $1,835,300 $1,514,820 21.16
Interest-bearing deposits 6,283,218 5,559,162 5,651,269 5,497,780 5,302,978 5,243,104 5,046,874 14.29 6,283,218 5,302,978 18.48
Total deposits 8,118,518 7,202,025 7,230,850 7,059,137 6,817,798 6,702,487 6,431,377 15.01 8,118,518 6,817,798 19.08
Borrowed funds 591,933 312,077 202,006 312,135 469,580 588,650 561,671 89.64 591,933 469,580 26.06
Shareholders' equity 1,511,826 1,271,786 1,251,065 1,232,883 1,142,247 1,124,256 1,053,178 22.63 1,511,826 1,142,247 32.36
Market value per common share $42.90 $43.74 $39.69 $42.22 $33.63 $32.33 $32.91 1.61 $42.90 $33.63 27.56
Book value per common share 30.65 28.62 28.18 27.81 27.13 26.71 26.09 10.21 30.65 27.13 12.97
Tangible book value per common share 17.73 17.56 17.07 16.65 15.34 14.88 14.28 6.47 17.73 15.34 15.55
Shareholders' equity to assets (actual) 14.64% 14.33% 14.27% 14.17% 13.37% 13.18% 12.93% 14.64% 13.37%
Tangible capital ratio (3) 9.03% 9.31% 9.16% 9.00% 8.03% 7.80% 7.52% 9.03% 8.03%
Leverage ratio 10.05% 10.68% 10.39% 10.59% 9.38% 9.18% 9.19% 10.05% 9.38%
Common equity tier 1 capital ratio 11.21% 11.65% 11.69% 11.47% 10.16% 10.13% 9.88% 11.21% 10.16%
Tier 1 risk-based capital ratio 12.25% 12.86% 12.93% 12.86% 11.57% 11.56% 11.38% 12.25% 11.57%
Total risk-based capital ratio 14.29% 15.00% 15.11% 15.03% 13.84% 12.31% 12.17% 14.29% 13.84%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q3 2017 - As of
2017 2016 Q4 2016 September 30,
---- ---- -------------
Third Second First Fourth Third Second First Percent Percent
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Variance 2017 2016 Variance
------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Loans not purchased
-------------------
Commercial, financial, agricultural $707,835 $657,713 $626,237 $589,290 $554,151 $530,258 $520,463 20.12 $707,835 $554,151 27.73
Lease Financing 51,902 49,066 47,816 46,841 45,510 43,116 41,937 10.80 51,902 45,510 14.05
Real estate- construction 477,638 424,861 378,061 483,926 415,934 381,690 325,188 (1.30) 477,638 415,934 14.84
Real estate - 1-4 family mortgages 1,644,060 1,551,934 1,485,663 1,425,730 1,388,066 1,328,948 1,263,879 15.31 1,644,060 1,388,066 18.44
Real estate - commercial mortgages 2,311,340 2,281,220 2,203,639 2,075,137 2,030,626 1,918,778 1,836,053 11.38 2,311,340 2,030,626 13.82
Installment loans to individuals 100,692 94,104 92,669 92,648 91,739 89,759 86,893 8.68 100,692 91,739 9.76
------- ------ ------ ------ ------ ------ ------ ------- ------
Loans, net of unearned $5,293,467 $5,058,898 $4,834,085 $4,713,572 $4,526,026 $4,292,549 $4,074,413 12.30 $5,293,467 $4,526,026 16.96
========== ========== ========== ========== ========== ========== ========== ========== ==========
Loans purchased and covered by FDIC loss-share agreements
---------------------------------------------------------
Commercial, financial, agricultural $ - $ - $ - $ - $14 $607 $624 - $ - $14 (100.00)
Lease Financing - - - - - - - - - - -
Real estate- construction - - - - - 83 86 - - - -
Real estate - 1-4 family mortgages - - - - 30,304 34,640 36,350 - - 30,304 (100.00)
Real estate - commercial mortgages - - - - 180 6,790 7,870 - - 180 (100.00)
Installment loans to individuals - - - - 35 51 59 - - 35 (100.00)
--- --- --- --- --- --- --- --- ---
Loans, net of unearned $ - $ - $ - $ - $30,533 $42,171 $44,989 - $ - $30,533 (100.00)
=== === === === === === === === ======= ======= ======= === === =======
Loans purchased and not covered by FDIC loss-share agreements
-------------------------------------------------------------
Commercial, financial, agricultural $301,100 $102,869 $115,229 $128,200 $139,961 $152,071 $133,847 134.87 $301,100 $139,961 115.13
Lease Financing - - - - - - - - - - -
Real estate- construction 100,082 35,946 35,673 68,753 71,704 70,958 52,300 45.57 100,082 71,704 39.58
Real estate - 1-4 family mortgages 651,792 400,460 431,904 452,447 452,274 485,458 477,266 44.06 651,792 452,274 44.11
Real estate - commercial mortgages 1,079,049 759,743 804,790 823,758 864,825 898,108 763,587 30.99 1,079,049 864,825 24.77
Installment loans to individuals 23,118 13,091 14,124 15,979 19,910 24,114 26,328 44.68 23,118 19,910 16.11
------ ------ ------ ------ ------ ------ ------ ------ ------
Loans, net of unearned $2,155,141 $1,312,109 $1,401,720 $1,489,137 $1,548,674 $1,630,709 $1,453,328 44.72 $2,155,141 $1,548,674 39.16
========== ========== ========== ========== ========== ========== ========== ========== ==========
Asset quality data
------------------
Assets not purchased:
Nonaccrual loans $9,970 $11,413 $12,629 $11,273 $12,454 $10,591 $11,690 (11.56) $9,970 $12,454 -19.95)
Loans 90 past due or more 3,295 1,283 2,175 2,079 2,315 1,428 2,495 58.49 3,295 2,315 42.33
----- ----- ----- ----- ----- ----- ----- ----- -----
Nonperforming loans 13,265 12,696 14,804 13,352 14,769 12,019 14,185 (0.65) 13,265 14,769 -10.18)
Other real estate owned 4,524 4,305 5,056 5,929 8,429 9,575 12,810 (23.70) 4,524 8,429 -46.33)
----- ----- ----- ----- ----- ----- ------ ----- -----
Nonperforming assets not purchased $17,789 $17,001 $19,860 $19,281 $23,198 $21,594 $26,995 (7.74) $17,789 $23,198 -23.32)
======= ======= ======= ======= ======= ======= ======= ======= =======
Assets purchased and subject to loss share:
Nonaccrual loans $ - $ - $ - $ - $1,628 $2,060 $2,708 - $ - $1,628 -
Loans 90 past due or more - - - - 786 2,076 4,343 - - 786 -
--- --- --- --- --- ----- ----- --- ---
Nonperforming loans - - - - 2,414 4,136 7,051 - - 2,414 -
Other real estate owned - - - - 926 2,618 1,373 - - 926 -
--- --- --- --- --- ----- ----- --- ---
Nonperforming assets purchased and subject to loss share $ - $ - $ - $ - $3,340 $6,754 $8,424 - $ - $3,340 -
=== === === === === === === === ====== ====== ====== === === ======
Assets purchased and not subject to loss share:
Nonaccrual loans $4,868 $5,927 $8,495 $11,347 $12,105 $13,312 $12,368 (57.10) $4,868 $12,105 (59.79)
Loans 90 past due or more 7,349 8,128 11,897 10,815 12,619 13,650 10,805 (32.05) 7,349 12,619 (41.76)
----- ----- ------ ------ ------ ------ ------ ----- ------
Nonperforming loans 12,217 14,055 20,392 22,162 24,724 26,962 23,173 (44.87) 12,217 24,724 (50.59)
Other real estate owned 13,296 15,409 16,266 17,370 16,973 17,146 19,051 (23.45) 13,296 16,973 (21.66)
------ ------ ------ ------ ------ ------ ------ ------ ------
Nonperforming assets purchased $25,513 $29,464 $36,658 $39,532 $41,697 $44,108 $42,224 (35.46) $25,513 $41,697 (38.81)
======= ======= ======= ======= ======= ======= ======= ======= =======
Net loan charge-offs (recoveries) $1,768 $524 $1,314 $4,837 $824 $191 $1,378 (63.45) $3,606 $2,393 50.69
Allowance for loan losses $44,531 $44,149 $42,923 $42,737 $45,924 $44,098 $42,859 4.20 $44,531 $45,924 (3.03)
Annualized net loan charge-offs / average loans 0.10% 0.03% 0.09% 0.31% 0.05% 0.01% 0.10% 0.07% 0.06%
Nonperforming loans / total loans* 0.34% 0.42% 0.56% 0.57% 0.69% 0.72% 0.80% 0.34% 0.69%
Nonperforming assets / total assets* 0.42% 0.52% 0.64% 0.68% 0.80% 0.85% 0.95% 0.42% 0.80%
Allowance for loan losses / total loans* 0.60% 0.69% 0.69% 0.69% 0.75% 0.74% 0.77% 0.60% 0.75%
Allowance for loan losses / nonperforming loans* 174.75% 165.04% 121.95% 120.34% 109.59% 102.28% 96.51% 174.75% 109.59%
Nonperforming loans / total loans** 0.25% 0.25% 0.31% 0.28% 0.33% 0.28% 0.35% 0.25% 0.33%
Nonperforming assets / total assets** 0.17% 0.19% 0.23% 0.22% 0.27% 0.25% 0.33% 0.17% 0.27%
Allowance for loan losses / total loans** 0.84% 0.87% 0.89% 0.91% 1.01% 1.03% 1.05% 0.84% 1.01%
Allowance for loan losses / nonperforming loans** 335.70% 347.74% 289.94% 320.08% 310.95% 366.90% 302.14% 335.70% 310.95%
*Based on all assets (includes purchased assets)
**Excludes all assets purchased
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended For The Nine Months Ending
September 30, 2017 June 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
------------------ ------------- ------------------ ------------------ ------------------
Average Interest Yield/ Average Interest Yield/ Average Interest Yield/ Average Interest Yield/ Average Interest Yield/
Balance Income/ Rate Balance Income/ Rate Balance Income/ Rate Balance Income/ Rate Balance Income/ Rate
Expense Expense Expense Expense Expense
------- ------- ------- ------- -------
Assets
Interest-earning assets:
Loans
Not purchased $5,095,445 $57,560 4.48% $4,938,922 $54,955 4.46% $4,424,727 $47,809 4.30% $4,930,254 $163,530 4.43% $4,186,798 $136,982 4.37%
Purchased 2,279,965 33,133 5.77 1,354,575 23,902 7.08 1,584,179 26,618 6.68 1,696,594 79,730 6.28 1,569,785 77,175 6.57
Purchased and covered(1) - - - - - - 39,111 701 7.13 - - - 54,767 2,909 7.10
--- --- --- --- ------ --- --- --- ------ -----
Total loans 7,375,410 90,693 4.88 6,293,497 78,857 5.03 6,048,017 75,128 4.94 6,626,848 243,260 4.91 5,811,350 217,066 4.99
Mortgage loans held for sale 226,512 2,419 4.24 168,650 1,831 4.35 241,314 2,026 3.34 169,508 5,399 4.26 254,930 6,870 3.60
Securities:
Taxable(2) 807,001 4,758 2.34 737,494 4,340 2.36 695,589 3,418 1.95 750,141 13,168 2.35 732,915 11,875 2.16
Tax-exempt 340,156 4,046 4.72 331,750 3,891 4.70 350,316 4,081 4.63 336,937 12,234 4.85 353,954 12,466 4.70
------- ----- ------- ----- ------- ----- ------- ------ ------- ------
Total securities 1,147,157 8,804 3.04 1,069,244 8,231 3.09 1,045,905 7,499 2.85 1,087,078 25,402 3.12 1,086,869 24,341 2.99
Interest-bearing balances with banks 194,988 697 1.42 126,458 510 1.62 98,225 131 0.53 211,404 1,762 1.11 80,153 308 0.51
------- --- ------- --- ------ --- ------- ----- ------ ---
Total interest-earning assets 8,944,067 102,613 4.55 7,657,849 89,429 4.68 7,433,461 84,784 4.54 8,094,838 275,823 4.56 7,233,302 248,585 4.59
Cash and due from banks 152,654 116,783 124,794 133,846 134,238
Intangible assets 636,977 492,349 497,064 541,571 490,225
FDIC loss-share indemnification asset - - 4,816 - 5,725
Other assets 543,778 453,679 502,064 487,833 493,949
------- ------- ------- ------- -------
Total assets $10,277,476 $8,720,660 $8,562,199 $9,258,088 $8,357,439
=========== ========== ========== ========== ==========
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand(3) 3,869,297 2,757 0.28 3,368,363 1,917 0.23 3,106,568 1,515 0.19 3,551,102 6,487 0.24 3,058,663 4,277 0.19
Savings deposits 575,684 101 0.07 568,535 98 0.07 528,794 94 0.07 566,148 295 0.07 521,176 276 0.07
Time deposits 1,814,268 3,976 0.87 1,603,800 3,300 0.83 1,619,740 3,029 0.74 1,679,165 10,515 0.84 1,573,749 8,465 0.72
--------- ----- --------- ----- --------- ----- --------- ------ --------- -----
Total interest-bearing deposits 6,259,249 6,834 0.43 5,540,698 5,315 0.38 5,255,102 4,638 0.35 5,796,415 17,297 0.40 5,153,588 13,018 0.34
Borrowed funds 575,816 3,844 2.65 233,542 2,661 4.57 550,222 2,663 1.93 364,865 9,231 3.38 561,294 7,339 1.75
------- ----- ------- ----- ------- ----- ------- ----- ------- -----
Total interest-bearing liabilities 6,835,065 10,678 0.62 5,774,240 0.55 5,805,324 7,301 0.50 6,161,280 26,528 0.58 5,714,882 20,357 0.48
Noninterest-bearing deposits 1,849,396 1,608,467 1,510,309 1,673,289 1,435,438
Other liabilities 97,421 79,018 111,493 88,797 104,464
Shareholders' equity 1,495,594 1,258,935 1,135,073 1,334,722 1,102,655
--------- --------- --------- --------- ---------
Total liabilities and shareholders' equity $10,277,476 $8,720,660 $8,562,199 $9,258,088 $8,357,439
=========== ========== ========== ========== ==========
Net interest income/ net interest margin $91,935 4.08% $81,453 4.27% $77,483 4.15% $249,295 4.12% $228,228 4.21%
(1) Represents information associated with purchased loans covered under loss sharing agreements prior to their termination on December 8, 2016.
(2) U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which we operate.
(3) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
RECONCILIATION OF GAAP TO NON-GAAP
----------------------------------
Nine Months Ended
2017 2016 September 30,
---- ---- -------------
Third Second First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2017 2016
------- ------- ------- ------- ------- ------- ------- ---- ----
Net income (GAAP) $26,421 $25,284 $23,972 $23,635 $23,179 $22,900 $21,216 $75,677 $67,295
Amortization of intangibles, net of tax 1,149 1,013 1,064 1,094 1,119 1,171 1,134 3,226 3,424
----------------
Tangible net income (non-GAAP) $27,570 $26,297 $25,036 $24,729 $24,298 $24,071 $22,350 $78,903 $70,719
Net income (GAAP) $26,421 $25,284 $23,972 $23,635 $23,179 $22,900 $21,216 $75,677 $67,295
Merger & conversion expenses, net of tax 4,075 2,065 235 - 178 1,888 634 6,459 2,689
Debt prepayment penalties, net of tax - - 140 - 1,468 221 - 137 1,697
Loss share termination, net of tax - - - 1,383 - - - - -
----------------
Net income with exclusions (non-GAAP) $30,496 $27,349 $24,347 $25,018 $24,825 $25,009 $21,850 $82,273 $71,681
Average shareholders' equity (GAAP) $1,495,594 $1,258,935 $1,246,903 $1,155,749 $1,135,073 $1,121,298 $1,050,668 $1,334,722 $1,102,655
Intangibles 636,977 492,349 493,816 495,404 497,064 499,503 473,852 541,571 490,225
-----------
Average tangible s/h's equity (non-GAAP) $858,617 $766,586 $753,087 $660,345 $638,009 $621,795 $576,816 $793,151 $612,430
Average total assets (GAAP) $10,277,476 $8,720,660 $8,759,448 $8,591,795 $8,562,199 $8,541,818 $7,961,700 $9,258,088 $8,357,439
Intangibles 636,977 492,349 493,816 495,404 497,064 499,503 473,852 541,571 490,225
-----------
Average tangible assets (non-GAAP) $9,640,499 $8,228,311 $8,265,632 $8,096,391 $8,065,135 $8,042,315 $7,487,848 $8,716,517 $7,867,214
Actual shareholders' equity (GAAP) $1,511,826 $1,271,786 $1,251,065 $1,232,883 $1,142,247 $1,124,256 $1,053,178 $1,511,826 $1,142,247
Intangibles 637,265 491,552 493,045 494,608 496,233 497,917 476,539 637,265 496,233
-----------
Actual tangible s/h's equity (non-GAAP) $874,561 $780,234 $758,020 $738,275 $646,014 $626,339 $576,639 $874,561 $646,014
Actual total assets (GAAP) $10,323,687 $8,872,272 $8,764,711 $8,699,851 $8,542,471 $8,529,566 $8,146,229 $10,323,687 $8,542,471
Intangibles 637,265 491,552 493,045 494,608 496,233 497,917 476,539 637,265 496,233
-----------
Actual tangible assets (non-GAAP) $9,686,422 $8,380,720 $8,271,666 $8,205,243 $8,046,238 $8,031,649 $7,669,690 $9,686,422 $8,046,238
(1) Return on Average Equity
Return on avg s/h's equity (GAAP) 7.01% 8.06% 7.80% 8.14% 8.12% 8.21% 8.12% 7.58% 8.15%
Effect of adjustment for intangible assets 5.73% 5.70% 5.69% 6.76% 7.03% 7.36% 7.46% 5.72% 7.27%
Return on avg tangible s/h's equity (non-GAAP) 12.74% 13.76% 13.48% 14.90% 15.15% 15.57% 15.58% 13.30% 15.42%
Return on avg s/h's equity with exclusions (GAAP) 8.09% 8.71% 7.92% 8.61% 8.70% 8.97% 8.36% 8.24% 8.68%
Effect of adjustment for intangible assets 6.53% 6.13% 5.77% 7.12% 7.48% 7.96% 7.66% 6.17% 7.70%
Return on avg tangible s/h's equity with exclusion (non-GAAP) 14.62% 14.84% 13.68% 15.73% 16.18% 16.93% 16.03% 14.41% 16.38%
(2) Return on Average Assets
Return on (average) assets (GAAP) 1.02% 1.16% 1.11% 1.09% 1.08% 1.08% 1.07% 1.09% 1.08%
Effect of adjustment for intangible assets 0.11% 0.12% 0.12% 0.12% 0.12% 0.13% 0.13% 0.12% 0.13%
Return on average tangible assets (non-GAAP) 1.13% 1.28% 1.23% 1.22% 1.20% 1.20% 1.20% 1.21% 1.20%
Return on avg assets with exclusions (GAAP) 1.18% 1.26% 1.13% 1.16% 1.15% 1.18% 1.10% 1.19% 1.15%
Effect of adjustment for intangible assets 0.11% 0.12% 0.12% 0.12% 0.12% 0.13% 0.13% 0.12% 0.13%
Return on avg tangible assets with exclusions (non-GAAP) 1.30% 1.38% 1.25% 1.28% 1.28% 1.31% 1.23% 1.31% 1.28%
(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP) 14.64% 14.33% 14.27% 14.17% 13.37% 13.18% 12.93% 14.64% 13.37%
Effect of adjustment for intangible assets 5.62% 5.02% 5.11% 5.17% 5.34% 5.38% 5.41% 5.62% 5.34%
Tangible capital ratio (non-GAAP) 9.03% 9.31% 9.16% 9.00% 8.03% 7.80% 7.52% 9.03% 8.03%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
CALCULATION OF EFFICIENCY RATIO
-------------------------------
Nine Months Ended
2017 2016 September 30,
---- ---- -------------
Third Second First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2017 2016
------- ------- ------- ------- ------- ------- ------- ---- ----
Interest income (FTE) $102,613 $89,429 $83,781 $87,564 $84,786 $85,783 $78,009 $275,823 $248,585
Interest expense 10,678 7,976 7,874 7,791 7,301 6,851 6,205 26,528 20,357
----------------
Net Interest income (FTE) $91,935 $81,453 $75,907 $79,773 $77,485 $78,932 $71,804 $249,295 $228,228
------- ------- ------- ------- ------- ------- ------- -------- --------
Total noninterest income $33,413 $34,265 $32,021 $30,255 $38,272 $35,586 $33,302 $99,699 $107,160
Securities gains (losses) 57 - - - - 1,257 (71) 57 1,186
----------------
Total noninterest income $33,356 $34,265 $32,021 $30,255 $38,272 $34,329 $33,373 $99,642 $105,974
------- ------- ------- ------- ------- ------- ------- --------
Total Income (FTE) $125,291 $115,718 $107,928 $110,028 $115,757 $113,261 $105,177 $348,937 $334,202
======== ======== ======== ======== ======== ======== ======== ======== ========
Total noninterest expense $80,660 $74,841 $69,309 $71,558 $76,468 $77,259 $69,814 $224,810 $223,541
Amortization of intangibles 1,766 1,493 1,563 1,624 1,684 1,742 1,697 4,822 5,123
Merger-related expenses 6,266 3,044 345 - 268 2,807 948 9,655 4,023
Debt extinguishment penalty - - 205 - 2,210 329 - 205 2,539
Loss share termination $ - - - 2,053 - - - - -
---------- ----------
Total noninterest expense $72,628 $70,304 $67,196 $67,881 $72,306 $72,381 $67,169 $210,128 $211,856
======= ======= ======= ======= ======= ======= ======= ======== ========
(4) Efficiency Ratio 57.97% 60.75% 62.26% 61.69% 62.46% 63.91% 63.86% 60.22% 63.39%
Contacts: For Media: For Financials:
John Oxford Kevin Chapman
Vice President Executive Vice President
Director of External Affairs Chief Financial Officer
(662) 680-1219 (662) 680-1450
joxford@renasant.com kchapman@renasant.com
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SOURCE Renasant Corporation
