Renasant Corporation Announces 2016 Fourth Quarter And Year-End Results

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 Diluted EPS		Pre-tax	After-tax	Impact to 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 Conversion Expenses, Debt Prepayment Penalties and Loss Share Termination		As Reported	Excluding Merger and Conversion Expenses, Debt 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
	[phone]	[phone]
	[e-mail]	[e-mail]

 

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SOURCE Renasant Corporation

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