RENASANT CORPORATION TUPELO, Miss., July 19, 2016 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced record financial results for the second quarter of 2016. Net income for the second quarter of 2016 was $22.9 million, or diluted earnings per share ("EPS") of $0.54, an increase of 48.75% from $15.4 million, or diluted EPS of $0.48, for the second quarter of 2015. The Company incurred pre-tax merger and conversion expenses of $2.8 million, or $1.9 million on an after-tax basis, for the second quarter of 2016 which reduced diluted EPS by $0.05, as compared to pre-tax merger and conversion expenses incurred during the second quarter of 2015 of $1.5 million, or $904 thousand on an after-tax basis, which reduced diluted EPS by $0.03. Excluding the impact of after-tax merger and conversion expenses incurred during each quarter, diluted EPS was $0.59 for the second quarter of 2016, as compared to $0.51 for the second quarter of 2015.
The Company's balance sheet and results of operations as of and for the three months ending June 30, 2016, include the impact of the Company's acquisition of KeyWorth Bank ("KeyWorth"), a Georgia state bank headquartered in Atlanta, Georgia, which was completed on April 1, 2016. As of the acquisition date, KeyWorth operated six offices in the Atlanta metropolitan area and had approximately $399 million in assets, approximately $284 million in total loans, and approximately $347 million in total deposits. The assets acquired and liabilities assumed are recorded at estimated fair value and are subject to change pending finalization of all valuations.
For the second quarter of 2016, the Company's return on average assets and return on average equity were 1.08% and 8.21%, respectively, as compared to 1.06% and 8.42%, respectively, for the second quarter of 2015. The Company's 2016 second quarter return on average tangible assets and return on average tangible shareholders' equity were 1.20% and 15.57%, respectively, as compared to 1.17% and 14.89%, respectively, for the second quarter of 2015.
The following table presents the Company's profitability metrics for the second quarter of 2016, including and excluding the impact of after-tax merger and conversion expenses:
As Excluding
Reported Merger and Conversion
Expenses
--------
Return on average
assets 1.08% 1.17%
Return on average
tangible assets 1.20% 1.30%
Return on average
equity 8.21% 8.89%
Return on average
tangible equity 15.57% 16.79%
"We are very pleased with our second quarter financial results. Annualized linked quarter non-acquired loan growth of 21.53% and strong revenue growth driven from our mortgage operations were large contributing factors to our record level quarterly net income of $22.9 million. These results also include our completion of the KeyWorth acquisition along with the successful conversion of its operations. Continued growth in our profitability metrics and the superior credit quality of our non-acquired assets highlight the successful first half of 2016," said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw.
Total assets as of June 30, 2016, were approximately $8.53 billion, as compared to $7.93 billion as of December 31, 2015.
Total deposits were $6.70 billion at June 30, 2016, as compared to $6.22 billion at December 31, 2015. The Company's cost of funds was 38 basis points for the second quarter of 2016, as compared to 41 basis points for the same quarter in 2015. The Company's noninterest-bearing deposits averaged approximately $1.48 billion, or 21.98% of average deposits, for the second quarter of 2016, as compared to $970 million, or 19.97% of average deposits, for the second 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 KeyWorth, Heritage Financial Group, Inc. ("Heritage"), and First M&F Corporation ("First M&F") acquisitions or in FDIC-assisted transactions (collectively referred to as "acquired loans"), were approximately $5.97 billion at June 30, 2016, as compared to $5.41 billion at December 31, 2015. Excluding acquired loans, loans grew 25.96% to $4.29 billion at June 30, 2016, as compared to $3.41 billion at June 30, 2015. Non-acquired loans were $3.83 billion at December 31, 2015.
At June 30, 2016, the Company's Tier 1 leverage capital ratio was 9.18%, its Tier 1 risk-based capital ratio was 11.55%, and its total risk-based capital ratio was 12.31%. The Company's common equity Tier 1 capital ratio was 10.12% at June 30, 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 7.79% as of June 30, 2016.
Net interest income was $77.16 million for the second quarter of 2016, as compared to approximately $51.61 million for the second quarter of 2015. Net interest margin was 4.29% for the second quarter of 2016, as compared to 4.17% for the second quarter of 2015. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans was $3.96 million in the second quarter of 2016 and increased net interest margin 25 basis points compared to $3.60 million and a 28 basis point increase in net interest margin in the same period in 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 $35.59 million for the second quarter of 2016, as compared to approximately $22.88 million for the second quarter of 2015. During the current quarter, the Company realized a gain of $1.26 million in connection with the sale of certain equity securities with a carrying value of $2.77 million at the time of sale compared to a gain of $96 thousand realized on the sale of securities during the second quarter of 2015. After considering this realized gain, the Company's overall growth in noninterest income for the second quarter, as compared to the same period in the prior year, is primarily attributable to the Heritage and KeyWorth acquisitions and increases in the sales of mortgage loans that we originate.
Noninterest expense was $77.26 million for the second quarter of 2016, as compared to approximately $51.08 million for the second quarter of 2015. The Company recorded merger and conversion expenses of approximately $2.81 million and $1.47 million during the second quarter of 2016 and 2015, respectively. During the current quarter, the Company recognized a penalty charge of $329 thousand in connection with the prepayment of approximately $3.5 million in borrowings from the Federal Home Loan Bank. No such charge was incurred during the second quarter of 2015. In addition, during the current quarter, the Company recognized a $750 thousand impairment charge related to a single property held in other real estate owned. This property is currently under contract to sell. After considering these expenses, which are typically nonrecurring, the Company's overall growth in noninterest expense for the second quarter, as compared to the same period in the prior year, is primarily attributable to the addition of the Heritage and KeyWorth operations.
Annualized net charge-offs as a percentage of average loans, including acquired loans, declined to 1 basis point for the second quarter of 2016, as compared to 16 basis points for the second quarter of 2015. The Company recorded a provision for loan losses of $1.43 million for the second quarter of 2016, as compared to $1.18 million for the second 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):
June 30, December 31, 2015 June 30,
2016 2015
---- ----
Not
acquired $21,594 $27,958 $36,128
Acquired
and
subject
to loss-
share
agreements 6,754 9,746 23,340
Acquired
and not
subject
to loss-
share
agreements 44,108 43,125 11,852
------ ------ ------
Total $72,456 $80,829 $71,320
======= ======= =======
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 $12.02 million as of June 30, 2016, as compared to $14.97 million as of December 31, 2015. Nonperforming loans as a percentage of total loans were 0.28% as of June 30, 2016, as compared to 0.39% as of December 31, 2015.
The allowance for loan losses totaled $44.10 million at June 30, 2016, as compared to $41.89 million as of June 30, 2015, and $42.44 million as of December 31, 2015. The allowance for loan losses as a percentage of loans was 1.03% as of June 30, 2016, as compared to 1.23% as of June 30, 2015, and 1.11% as of December 31, 2015.
The Company's coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 366.90% as of June 30, 2016, as compared to 197.95% as of June 30, 2015, and 283.46% as of December 31, 2015. Loans 30 to 89 days past due as a percentage of total loans were 0.22% at June 30, 2016, as compared to 0.19% at June 30, 2015, and 0.19% at December 31, 2015.
OREO was $9.58 million as of June 30, 2016, as compared to $12.99 million at December 31, 2015. The Company continues to proactively market the properties held in OREO as it sold approximately $2.5 million of OREO during the second quarter of 2016 and had $628 thousand in sales during the first quarter of 2016.
CONFERENCE CALL INFORMATION:
The Company will hold executive management's quarterly webcast and conference call with analysts on Wednesday, July 20, 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/rnst160720. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Second 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 10089373 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 4, 2016.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 112-year-old financial services institution. Renasant has assets of approximately $8.5 billion and operates more than 175 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama, Florida and Georgia.
NOTE TO INVESTORS:
This news release may contain, or incorporate by reference, statements which may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking statements usually include words such as "expects," "projects," "anticipates," "believes," "intends," "estimates," "strategy," "plan," "potential," "possible" and other similar expressions.
Prospective investors are cautioned that any such forward-looking statements are not guarantees for future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include significant fluctuations in interest rates, inflation, economic recession, significant changes in the federal and state legal and regulatory environment, significant underperformance in our portfolio of outstanding loans, and competition in our markets. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
NON-GAAP FINANCIAL MEASURES:
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets, which the Company's management uses when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indications of its operating performance particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible can vary extensively from company to company and are excluded from the calculation of a financial institution's regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company's results to information provided in other regulatory reports and the results of other companies.
The specific non-GAAP financial measures used are return on average tangible shareholders' equity, return on average tangible assets and the ratio of tangible equity to tangible assets (commonly referred to as the "tangible capital ratio"). The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company's calculations may not be comparable to other similarly titled measures presented by other companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption "Reconciliation of GAAP to Non-GAAP."
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q2 2016 - For The Six Months Ending
2016 2015 Q2 2015 June 30,
---- ---- ------- --------
Second First Fourth Third Second First Percent Percent
Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Statement of earnings
---------------------
Interest income - taxable equivalent basis $85,783 $78,009 $79,679 $76,241 $58,516 $55,910 46.60 $163,800 $114,426 43.15
Interest income $84,008 $76,259 $77,788 $74,300 $56,769 $54,166 47.98 $160,267 $110,935 44.47
Interest expense 6,851 6,205 5,437 5,688 5,155 5,385 32.90 13,056 10,540 23.87
----- ----- ----- ----- ----- ----- ------ ------
Net interest income 77,157 70,054 72,351 68,612 51,614 48,781 49.49 147,211 100,395 46.63
Provision for loan losses 1,430 1,800 1,750 750 1,175 1,075 21.70 3,230 2,250 43.56
----- ----- ----- --- ----- ----- ----- -----
Net interest income after provision 75,727 68,254 70,601 67,862 50,439 47,706 50.14 143,981 98,145 46.70
Service charges on deposit accounts 7,521 7,991 8,261 8,151 6,522 6,335 15.32 15,512 12,857 20.65
Fees and commissions on loans and deposits 5,045 4,331 4,437 4,388 3,571 3,695 41.28 9,376 7,266 29.04
Insurance commissions and fees 2,175 1,962 1,956 2,381 2,119 1,967 2.64 4,137 4,086 1.25
Wealth management revenue 2,872 2,891 2,609 2,833 2,210 2,156 29.95 5,763 4,366 32.00
Securities gains (losses) 1,257 (71) - - 96 - 1,209.38 1,186 96 1,135.42
Mortgage banking income 13,420 11,915 11,702 11,893 6,791 5,429 97.61 25,335 12,220 107.32
Gain on sale of SBA loans 1,035 996 509 376 90 293 1,050.00 2,031 383 430.29
Other 2,261 3,287 1,968 2,057 1,480 1,995 52.77 5,548 3,475 59.65
----- ----- ----- ----- ----- ----- ----- -----
Total noninterest income 35,586 33,302 31,442 32,079 22,879 21,870 55.54 68,888 44,749 53.94
Salaries and employee benefits 45,387 42,393 43,408 43,048 30,395 28,260 49.32 87,780 58,655 49.65
Data processing 4,502 4,158 4,003 3,819 3,199 3,230 40.73 8,660 6,429 34.70
Occupancy and equipment 8,531 8,224 8,171 7,733 5,524 5,559 54.44 16,755 11,083 51.18
Other real estate 1,614 957 698 861 954 532 69.18 2,571 1,486 73.01
Amortization of intangibles 1,742 1,697 1,753 1,803 1,238 1,275 40.71 3,439 2,513 36.85
Merger and conversion related expenses 2,807 948 1,922 7,746 1,468 478 91.21 3,755 1,946 92.96
Debt extinguishment penalty 329 - - - - - 100.00 329 - 1.00
Other 12,347 11,437 10,779 10,969 8,304 7,985 48.70 23,784 16,289 46.02
------ ------ ------ ------ ----- ----- ------ ------
Total noninterest expense 77,259 69,814 70,734 75,979 51,082 47,319 51.25 147,073 98,401 49.46
Income before income taxes 34,054 31,742 31,309 23,962 22,236 22,257 53.14 65,796 44,493 47.88
Income taxes 11,154 10,526 10,149 7,742 6,842 7,017 63.02 21,680 13,859 56.43
Net income $22,900 $21,216 $21,160 $16,220 $15,394 $15,240 48.75 $44,116 $30,634 44.01
Basic earnings per share $0.54 $0.53 $0.53 $0.40 $0.49 $0.48 10.20 $1.07 $0.97 10.31
Diluted earnings per share 0.54 0.52 0.52 0.40 0.48 0.48 12.50 1.06 0.96 10.42
Average basic shares outstanding 42,066,168 40,324,475 40,276,441 40,265,941 31,626,059 31,576,275 33.01 41,200,133 31,601,304 30.37
Average diluted shares outstanding 42,303,626 40,559,145 40,539,151 40,518,413 31,865,172 31,815,710 32.76 41,435,962 31,834,257 30.16
Common shares outstanding 42,085,690 40,373,753 40,293,291 40,268,455 31,644,706 31,604,937 32.99 42,085,690 31,644,706 32.99
Cash dividend per common share $0.18 $0.17 $0.17 $0.17 $0.17 $0.17 5.88 $0.35 $0.34 2.94
Performance ratios
------------------
Return on average shareholders' equity 8.21% 8.12% 8.12% 6.33% 8.42% 8.59% 8.17% 8.50%
Return on average tangible shareholders' equity (1) 15.57% 15.58% 15.84% 12.20% 14.89% 15.45% 15.57% 15.16%
Return on average assets 1.08% 1.07% 1.06% 0.81% 1.06% 1.06% 1.07% 1.06%
Return on average tangible assets (2) 1.20% 1.20% 1.19% 0.93% 1.17% 1.18% 1.20% 1.18%
Net interest margin (FTE) 4.29% 4.21% 4.33% 4.09% 4.17% 4.02% 4.25% 4.10%
Yield on earning assets (FTE) 4.66% 4.57% 4.65% 4.42% 4.57% 4.45% 4.62% 4.51%
Cost of funding 0.38% 0.37% 0.32% 0.33% 0.41% 0.43% 0.37% 0.42%
Average earning assets to average assets 86.59% 86.21% 86.07% 86.64% 87.79% 87.49% 86.41% 87.64%
Average loans to average deposits 87.73% 87.39% 86.22% 83.63% 81.93% 81.44% 87.56% 81.69%
Noninterest income (less securities gains/
losses) to average assets 1.62% 1.69% 1.58% 1.61% 1.56% 1.52% 1.65% 1.54%
merger-related expenses) to average assets 3.49% 3.48% 3.46% 3.43% 3.40% 3.26% 3.48% 3.33%
Net overhead ratio 1.87% 1.79% 1.88% 1.82% 1.84% 1.74% 1.83% 1.79%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q2 2016 - For The Six Months Ending
2016 2015 Q2 2015 June 30,
---- ---- ------- --------
Second First Fourth Third Second First Percent Percent
Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Average Balances
----------------
Total assets $8,541,818 $7,961,700 $7,898,803 $7,897,769 $5,847,539 $5,821,758 46.08 $8,253,361 $5,834,719 41.45
Earning assets 7,396,282 6,863,905 6,798,474 6,842,452 5,133,567 5,093,223 44.08 7,131,564 5,113,508 39.47
Securities 1,111,830 1,103,504 1,117,322 1,143,577 999,962 989,743 11.19 1,107,690 994,881 11.34
Mortgage loans held for sale 306,011 217,200 268,096 398,480 87,435 50,918 249.99 261,851 69,277 277.98
Loans, net of unearned 5,897,650 5,482,167 5,341,943 5,223,273 3,978,514 3,969,243 48.24 5,691,056 3,973,905 43.21
Intangibles 499,509 473,852 473,996 449,042 295,441 296,682 69.07 486,752 296,058 64.41
Noninterest-bearing deposits $1,477,380 $1,316,495 $1,323,467 $1,272,714 $969,770 $932,011 52.34 $1,397,382 $950,995 46.94
Interest-bearing deposits 5,245,406 4,956,983 4,872,432 4,972,717 3,886,199 3,941,863 34.98 5,101,991 3,913,877 30.36
Total deposits 6,722,786 6,273,478 6,195,899 6,245,431 4,855,969 4,873,874 38.44 6,499,373 4,864,872 33.60
Borrowed funds 594,459 539,078 568,548 556,269 204,884 168,758 190.14 566,921 186,921 203.29
Shareholders' equity 1,121,297 1,050,668 1,033,692 1,016,143 733,158 719,687 52.94 1,086,178 726,460 49.52
Q2 2016 - As of
2016 2015 Q4 2015 June 30,
---- ---- ------- --------
Second First Fourth Third Second First Percent Percent
Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Balances at period end
----------------------
Total assets $8,529,566 $8,146,229 $7,926,496 $7,910,963 $5,899,190 $5,881,849 7.61 $8,529,566 $5,899,190 44.59
Earning assets 7,396,888 7,045,180 6,778,485 6,810,285 5,186,419 5,168,497 9.12 7,396,888 5,186,419 42.62
Securities 1,063,592 1,101,820 1,105,205 1,139,553 965,290 1,016,394 (3.77) 1,063,592 965,290 10.18
Mortgage loans held for sale 276,782 298,365 225,254 317,681 108,023 102,780 22.88 276,782 108,023 156.23
Loans not acquired 4,292,549 4,074,413 3,830,434 3,607,005 3,407,925 3,274,314 12.06 4,292,549 3,407,925 25.96
Loans acquired and covered by FDIC loss-share agreements 42,171 44,989 93,142 100,839 121,626 125,773 (54.72) 42,171 121,626 (65.33)
Loans acquired and not covered by FDIC loss-share agreements 1,630,709 1,453,328 1,489,886 1,570,116 507,653 553,574 9.45 1,630,709 507,653 221.23
Total loans 5,965,429 5,572,730 5,413,462 5,277,960 4,037,204 3,953,661 10.20 5,965,429 4,037,204 47.76
Intangibles 498,438 476,539 474,682 474,830 294,808 296,053 5.00 498,438 294,808 69.07
Noninterest-bearing deposits $1,459,383 $1,384,503 $1,278,337 $1,303,884 $972,672 $959,351 14.16 $1,459,383 $972,672 50.04
Interest-bearing deposits 5,243,104 5,046,874 4,940,265 4,930,677 3,917,772 3,983,418 6.13 5,243,104 3,917,772 33.83
Total deposits 6,702,487 6,431,377 6,218,602 6,234,561 4,890,444 4,942,769 7.78 6,702,487 4,890,444 37.05
Borrowed funds 588,650 561,671 570,496 551,740 219,089 162,313 3.18 588,650 219,089 168.68
Shareholders' equity 1,124,256 1,053,178 1,036,818 1,024,930 730,976 723,196 8.43 1,124,256 730,976 53.80
Market value per common share $32.33 $32.91 $34.41 $32.85 $32.60 $30.05 (6.04) $32.33 $32.60 (0.83)
Book value per common share 26.71 26.09 25.73 25.45 23.10 22.88 3.82 26.71 23.10 15.65
Tangible book value per common share 14.87 14.28 13.95 13.66 13.78 13.52 6.59 14.87 13.78 7.88
Shareholders' equity to assets (actual) 13.18% 12.93% 13.08% 12.96% 12.39% 12.30% 13.18% 12.39%
Tangible capital ratio (3) 7.79% 7.52% 7.54% 7.40% 7.78% 7.65% 7.79% 7.78%
Leverage ratio 9.18% 9.19% 9.16% 8.95% 9.89% 9.74% 9.18% 9.89%
Common equity tier 1 capital ratio 10.12% 9.88% 9.99% 9.92% 10.45% 10.35% 10.12% 10.45%
Tier 1 risk-based capital ratio 11.55% 11.38% 11.51% 11.46% 12.52% 12.47% 11.55% 12.52%
Total risk-based capital ratio 12.31% 12.17% 12.32% 12.27% 13.55% 13.51% 12.31% 13.55%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q2 2016 - As of
2016 2015 Q4 2015 June 30,
---- ---- ------- --------
Second First Fourth Third Second First Percent Percent
Quarter Quarter Quarter Quarter Quarter Quarter Variance 2016 2015 Variance
------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Loans not acquired
------------------
Commercial, financial, agricultural $530,258 $520,463 $485,407 $450,688 $437,181 $418,752 9.24 $530,258 $437,181 21.29
Lease Financing 43,116 41,937 34,815 24,698 17,633 11,560 23.84 43,116 17,633 144.52
Real estate- construction 381,690 325,188 291,701 268,805 212,071 200,966 30.85 381,690 212,071 79.98
Real estate - 1-4 family mortgages 1,328,948 1,263,879 1,204,228 1,128,556 1,073,816 1,025,264 10.36 1,328,948 1,073,816 23.76
Real estate - commercial mortgages 1,918,778 1,836,053 1,729,049 1,653,534 1,589,969 1,542,706 10.97 1,918,778 1,589,969 20.68
Installment loans to individuals 89,759 86,893 85,234 80,724 77,255 75,066 5.31 89,759 77,255 16.19
Loans, net of unearned $4,292,549 $4,074,413 $3,830,434 $3,607,005 $3,407,925 $3,274,314 12.06 $4,292,549 $3,407,925 25.96
Loans acquired and covered by FDIC loss-share agreements
--------------------------------------------------------
Commercial, financial, agricultural $607 $624 $2,406 $2,467 $3,726 $3,917 (74.77) $607 $3,726 (83.71)
Lease Financing - - - - - - - - - -
Real estate- construction 83 86 130 137 - - (36.15) 83 - 100.00
Real estate - 1-4 family mortgages 34,640 36,350 45,988 48,779 40,333 42,758 (24.68) 34,640 40,333 (14.11)
Real estate - commercial mortgages 6,790 7,870 44,550 49,382 77,536 79,064 (84.76) 6,790 77,536 (91.24)
Installment loans to individuals 51 59 68 74 31 34 (25.00) 51 31 64.52
Loans, net of unearned $42,171 $44,989 $93,142 $100,839 $121,626 $125,773 (54.72) $42,171 $121,626 (65.33)
======= ======= ======= ======== ======== ======== ======= ========
Loans acquired and not covered by FDIC loss-share agreements
------------------------------------------------------------
Commercial, financial, agricultural $152,071 $133,847 $149,024 $167,966 $39,652 $52,119 2.04 $152,071 $39,652 283.51
Lease Financing - - - - - - - - - -
Real estate- construction 70,958 52,300 65,834 70,428 505 483 7.78 70,958 505 13,951.09
Real estate - 1-4 family mortgages 485,458 477,266 485,107 485,170 161,765 171,433 0.07 485,458 161,765 200.10
Real estate - commercial mortgages 898,108 763,587 760,130 813,973 295,484 317,224 18.15 898,108 295,484 203.94
Installment loans to individuals 24,114 26,328 29,791 32,579 10,247 12,315 (19.06) 24,114 10,247 135.33
Loans, net of unearned $1,630,709 $1,453,328 $1,489,886 $1,570,116 $507,653 $553,574 9.45 $1,630,709 $507,653 221.23
Asset quality data
------------------
Assets not acquired:
Nonaccrual loans $10,591 $11,690 $13,645 $14,522 $15,514 $17,719 (22.38) $10,591 $15,514 (31.73)
Loans 90 past due or more 1,428 2,495 1,326 647 5,647 1,193 7.69 1,428 5,647 (74.71)
Nonperforming loans 12,019 14,185 14,971 15,169 21,161 18,912 (19.72) 12,019 21,161 (43.20)
Other real estate owned 9,575 12,810 12,987 13,936 14,967 16,735 (26.27) 9,575 14,967 (36.03)
Nonperforming assets not acquired $21,594 $26,995 $27,958 $29,105 $36,128 $35,647 (22.76) $21,594 $36,128 (40.23)
Assets acquired and subject to loss share:
Nonaccrual loans $2,060 $2,708 $3,319 $3,270 $19,487 $18,040 (37.93) $2,060 $19,487 (89.43)
Loans 90 past due or more 2,076 4,343 3,609 4,143 - - (42.48) 2,076 - 100.00
Nonperforming loans 4,136 7,051 6,928 7,413 19,487 18,040 (40.30) 4,136 19,487 (78.78)
Other real estate owned 2,618 1,373 2,818 3,183 3,853 4,325 (7.10) 2,618 3,853 (32.05)
Nonperforming assets acquired and subject to loss share $6,754 $8,424 $9,746 $10,596 $23,340 $22,365 (30.70) $6,754 $23,340 (71.06)
Assets acquired and not subject to loss share:
Nonaccrual loans $13,312 $12,368 $12,070 $15,796 $1,085 $1,627 10.29 $13,312 $1,085 1,126.91
Loans 90 past due or more 13,650 10,805 11,458 8,824 2,523 9,636 19.13 13,650 2,523 441.02
Nonperforming loans 26,962 23,173 23,528 24,620 3,608 11,263 14.60 26,962 3,608 647.28
Other real estate owned 17,146 19,051 19,597 19,215 8,244 10,626 (12.51) 17,146 8,244 107.98
Nonperforming assets acquired $44,108 $42,224 $43,125 $43,835 $11,852 $21,889 2.28 $44,108 $11,852 272.16
Net loan charge-offs (recoveries) $191 $1,378 $1,364 $588 $1,588 $1,062 (86.00) $1,569 $1,588 (1.20)
Allowance for loan losses $44,098 $42,859 $42,437 $42,051 $41,888 $42,302 3.91 $44,098 $41,888 5.28
Annualized net loan charge-offs / average loans 0.01% 0.10% 0.10% 0.04% 0.16% 0.11% 0.06% 0.08%
Nonperforming loans / total loans* 0.72% 0.80% 0.84% 0.89% 1.10% 1.22% 0.72% 1.10%
Nonperforming assets / total assets* 0.85% 0.95% 1.02% 1.06% 1.21% 1.36% 0.85% 1.21%
Allowance for loan losses / total loans* 0.74% 0.77% 0.78% 0.80% 1.04% 1.07% 0.74% 1.04%
Allowance for loan losses / nonperforming loans* 102.28% 96.51% 93.42% 89.09% 94.65% 87.74% 102.28% 94.65%
Nonperforming loans / total loans** 0.28% 0.35% 0.39% 0.42% 0.62% 0.58% 0.28% 0.62%
Nonperforming assets / total assets** 0.25% 0.33% 0.35% 0.37% 0.61% 0.61% 0.25% 0.61%
Allowance for loan losses / total loans** 1.03% 1.05% 1.11% 1.17% 1.23% 1.29% 1.03% 1.23%
Allowance for loan losses / nonperforming loans** 366.90% 302.14% 283.46% 277.22% 197.95% 223.68% 366.90% 197.95%
*Based on all assets (includes acquired assets)
**Excludes all assets acquired
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
RECONCILIATION OF GAAP TO NON-GAAP
----------------------------------
For The Six Months Ending
2016 2015 June 30,
---- ---- --------
Second First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Quarter 2016 2015
------- ------- ------- ------- ------- ------- ---- ----
Net income (GAAP) $22,899 $21,216 $21,160 $16,220 $15,394 $15,240 $44,115 $30,634
Amortization of intangibles, net of tax 1,171 1,134 1,185 1,220 857 873 2,306 1,730
Tangible net income (non-GAAP) $24,070 $22,350 $22,345 $17,440 $16,251 $16,113 $46,421 $32,364
Average shareholders' equity (GAAP) $1,121,297 $1,050,668 $1,033,692 $1,016,143 $733,158 $719,687 $1,086,178 $726,460
Intangibles 499,509 473,852 473,996 449,042 295,441 296,682 486,752 296,058
Average tangible s/h's equity (non-GAAP) $621,788 $576,816 $559,696 $567,101 $437,717 $423,005 $599,426 $430,402
Average total assets (GAAP) $8,541,818 $7,961,700 $7,898,803 $7,897,769 $5,847,539 $5,821,758 $8,253,361 $5,834,719
Intangibles 499,509 473,852 473,996 449,042 295,441 296,682 486,752 296,058
Average tangible assets (non-GAAP) $8,042,309 $7,487,848 $7,424,807 $7,448,727 $5,552,098 $5,525,076 $7,766,609 $5,538,661
Actual shareholders' equity (GAAP) $1,124,256 $1,053,178 $1,036,818 $1,024,930 $730,976 $723,196 $1,124,256 $730,976
Intangibles 498,438 476,539 474,682 474,830 294,808 296,053 498,438 294,808
Actual tangible s/h's equity (non-GAAP) $625,818 $576,639 $562,136 $550,100 $436,168 $427,143 $625,818 $436,168
Actual total assets (GAAP) $8,529,566 $8,146,229 $7,926,496 $7,910,963 $5,899,190 $5,881,849 $8,529,566 $5,899,190
Intangibles 498,438 476,539 474,682 474,830 294,808 296,053 498,438 294,808
Actual tangible assets (non-GAAP) $8,031,128 $7,669,690 $7,451,814 $7,436,133 $5,604,382 $5,585,796 $8,031,128 $5,604,382
(1) Return on Average Equity
Return on avg s/h's equity (GAAP) 8.21% 8.12% 8.12% 6.33% 8.42% 8.59% 8.17% 8.50%
Effect of adjustment for intangible assets 7.36% 7.46% 7.72% 5.87% 6.47% 6.86% 7.41% 6.66%
Return on avg tangible s/h's equity (non-GAAP) 15.57% 15.58% 15.84% 12.20% 14.89% 15.45% 15.57% 15.16%
(2) Return on Average Assets
Return on (average) assets (GAAP) 1.08% 1.07% 1.06% 0.81% 1.06% 1.06% 1.07% 1.06%
Effect of adjustment for intangible assets 0.13% 0.13% 0.13% 0.11% 0.12% 0.12% 0.13% 0.12%
Return on average tangible assets (non-GAAP) 1.20% 1.20% 1.19% 0.93% 1.17% 1.18% 1.20% 1.18%
(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP) 13.18% 12.93% 13.08% 12.96% 12.39% 12.30% 13.18% 12.39%
Effect of adjustment for intangible assets 5.39% 5.41% 5.54% 5.56% 4.61% 4.65% 5.39% 4.61%
Tangible capital ratio (non-GAAP) 7.79% 7.52% 7.54% 7.40% 7.78% 7.65% 7.79% 7.78%
CALCULATION OF EFFICIENCY RATIO
-------------------------------
Interest income (FTE) $85,783 $78,009 $79,679 $76,241 $58,516 $55,910 $163,800 $114,426
Interest expense 6,851 6,205 5,437 5,688 5,155 5,385 13,056 10,540
Net Interest income (FTE) $78,932 $71,804 $74,242 $70,553 $53,361 $50,525 $150,744 $103,886
Total noninterest income $35,586 $33,302 $31,442 $32,079 $22,879 $21,870 $68,888 $44,749
Securities gains (losses) 1,257 (71) - - 96 - 1,186 96
Total noninterest income $34,329 $33,373 $31,442 $32,079 $22,783 $21,870 $67,702 $44,653
Total Income (FTE) $113,261 $105,177 $105,684 $102,632 $76,144 $72,395 $218,446 $148,539
======== ======== ======== ======== ======= ======= ======== ========
Total noninterest expense $77,260 $69,814 $70,734 $75,979 $51,082 $47,319 $147,074 $98,401
Amortization of intangibles 1,742 1,697 1,753 1,803 1,238 1,275 3,439 2,513
Merger-related expenses 2,807 948 1,922 7,746 1,468 478 3,755 1,946
Debt extinguishment penalty 329 - - - - - 329 -
Total noninterest expense $72,382 $67,169 $67,059 $66,430 $48,376 $45,566 $139,551 $93,942
======= ======= ======= ======= ======= ======= ======== =======
(4) Efficiency Ratio 63.91% 63.86% 63.45% 64.73% 63.53% 62.94% 63.88% 63.24%
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-record-229-million-in-2016-second-quarter-earnings-300300987.html
SOURCE Renasant Corporation
