RENASANT CORPORATION TUPELO, Miss., July 15, 2014 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced its financial results for the second quarter of 2014. Net income increased 85% for the second quarter of 2014 to $14,853,000, or basic and diluted earnings per share ("EPS") of $0.47, as compared to $8,019,000, or basic and diluted EPS of $0.32, for the second quarter of 2013. The Company's balance sheet and results of operations as of and for the three months ending June 30, 2014, include the impact of the Company's acquisition of First M&F Corporation ("First M&F"), which was completed on September 1, 2013. Periods presented prior to September 1, 2013, do not reflect any impact from the First M&F acquisition.
For the second quarter of 2014, the Company's return on assets and return on equity were 1.02% and 8.67%, respectively, as compared to 0.76% and 6.35%, respectively, for the second quarter of 2013. The Company's 2014 second quarter return on tangible assets and return on tangible equity were 1.15% and 16.55%, respectively, as compared to 0.82% and 10.47%, respectively, for the second quarter of 2013.
"Our second quarter financial results reflect the achievement of several key short-term initiatives and continued progress on our long-term strategies, specifically a return to higher levels of sustainable profitability and replenishing capital deployed in the First M&F acquisition. Focusing first on sustainable profitability, our earnings per share of 47 cents represents our highest quarterly earnings in the 110-year history of our company excluding quarters which recognized one-time gains associated with acquisitions. In addition, our return on assets was 1.02% for the quarter, marking the first time our return on assets exceeded 1% since the economic downturn," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "These accomplishments were driven by annualized linked quarter non-acquired loan growth of 20.1% and a continued focus on generating revenues from our diversified lines of business while at the same time managing expenses to ensure future revenue growth is maximized. In regards to capital levels, our tangible common equity ratio stands at 7.00% at June 30, 2014, which, coupled with our strong regulatory capital ratios, will continue to support future balance sheet growth whether that growth is organic or the result of an external opportunity."
Total assets as of June 30, 2014, were approximately $5.83 billion, as compared to $5.74 billion from December 31, 2013, and $5.9 billion on a linked quarter basis. The decrease in assets on a linked quarter basis is due to the seasonal runoff of deposits, primarily in public fund deposits, and the related divestiture of the liquid assets (low-yielding interest bearing cash or short-term investments) in which these seasonal deposits were invested.
Total loans, including loans acquired in either the First M&F merger or in FDIC-assisted transactions (collectively referred to as "acquired loans"), were approximately $3.96 billion at June 30, 2014, as compared to $3.88 billion at December 31, 2013, and $3.87 billion on a linked quarter basis. Excluding acquired loans, loans grew 7.3%, or 14.6% annualized, to $3.10 billion at June 30, 2014, as compared to $2.89 billion at December 31, 2013, and increased 5.0%, or 20.1% annualized, from $2.95 billion on a linked quarter basis.
Total deposits were $4.89 billion at June 30, 2014, as compared to $4.84 billion at December 31, 2013, and $5.00 billion on a linked quarter basis. Noninterest-bearing deposits averaged approximately $905.2 million, which represents 18.4% of the Company's average deposits, for the second quarter of 2014, as compared to $562.1 million, or 16% of average deposits, for the second quarter of 2013. The Company's cost of funds was 48 basis points for the second quarter of 2014, as compared to 60 basis points for the same quarter in 2013.
As of June 30, 2014, the Company's Tier 1 leverage capital ratio was 8.91%, its Tier 1 risk-based capital ratio was 11.82%, and its total risk-based capital ratio was 12.96%. The Company's tangible common equity ratio was 7.00%. All of the Company's regulatory capital ratios increased on a linked quarter basis and continue to be in excess of the regulatory minimums required to be classified as "well-capitalized."
Net interest income was $52.2 million for the second quarter of 2014, as compared to $34.4 million for the second quarter of 2013 and $50.0 million for the first quarter of 2014. Net interest margin was 4.24% for the second quarter of 2014, as compared to 3.88% for the second quarter of 2013 and 4.04% for the first quarter of 2014.
Noninterest income was $19.5 million for the second quarter of 2014, as compared to $17.3 million for the second quarter of 2013 and $18.6 million on a linked quarter basis. The Company's increase in noninterest income year-over-year is primarily attributable to the First M&F merger, notably a 37% increase in service charges and a 120% increase in insurance commissions and fees. On a linked quarter basis, the Company's growth in noninterest income was driven by higher levels of deposit and loan fees, and increased revenues generated from the Company's insurance, wealth management and mortgage banking divisions.
Noninterest expense was $49.4 million for the second quarter of 2014, as compared to $37.7 million for the second quarter of 2013. The increase in noninterest expense, as compared to the same period in 2013, was primarily due to the expenses of the acquired First M&F operations. The increase in expense was offset, however, by a significant reduction in costs associated with other real estate owned ("OREO") as OREO expense decreased approximately 39.76% as compared to the second quarter of 2013. On a linked quarter comparison, noninterest expense increased primarily due to higher levels of salaries and employee benefits as a result of higher commissions on mortgage and insurance production and higher than anticipated health insurance claims.
At June 30, 2014, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $73.2 million and total OREO was $41.8 million. The Company's nonperforming loans and OREO that were acquired either through the First M&F merger or in connection with FDIC-assisted transactions (collectively referred to as "acquired nonperforming assets") were $52.4 million and $17.9 million, respectively, at June 30, 2014.
Since the acquired nonperforming assets were recorded at fair value at the time of acquisition or subject to loss-share agreements with the FDIC, which significantly mitigates our 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 were $20.8 million as of June 30, 2014, as compared to $19.2 million as of December 31, 2013. Nonperforming loans as a percentage of total loans were 0.67% as of June 30, 2014, as compared to 0.66% as of December 31, 2013.
Annualized net charge-offs as a percentage of average loans were 0.23% for the second quarter of 2014, as compared to 0.35% for the second quarter of 2013. The Company recorded a provision for loan losses of $1.5 million for the second quarter of 2014, as compared to $3.0 million for the second quarter of 2013.
The allowance for loan losses totaled $47.3 million at June 30, 2014, as compared to $47.7 million as of December 31, 2013. The allowance for loan losses as a percentage of loans was 1.53% as of June 30, 2014, as compared to 1.65% as of December 31, 2013.
The Company's coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 227.53% as of June 30, 2014, as compared to 248.90% as of December 31, 2013. Loans 30-to-89 days past due as a percentage of total loans declined to 0.25% at June 30, 2014, as compared to 0.31% at December 31, 2013. OREO was $23.9 million as of June 30, 2014, as compared to $27.5 million as of December 31, 2013.
"In closing, our quarterly results represent our efforts to increase profitability in an economic period where competition results in thin margins. Despite these headwinds, our strong commercial and mortgage loan pipelines and our continued focus on improving our efficiency positions us to be opportunistic and drive higher levels of future profitability," stated McGraw.
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, July 16, 2014.
The webcast and call can be accessed by pre-registering (preferred method) at http://dpregister.com/10049152 or visiting http://services.choruscall.com/links/rnst140716.html at the time of the call. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Second Quarter 2014 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 10049152 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until 9:00 AM ET on July 31, 2014.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 110-year-old financial services institution, and Renasant Insurance. Renasant has assets of approximately $5.8 billion and operates more than 120 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama 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."
Contacts:
For Media: For Financials:
John Oxford Kevin Chapman
First Vice President Executive Vice President
Director of Corp Communication Chief Financial Officer
(662) 680-1219 (662) 680-1450
joxford@renasant.com kchapman@renasant.com
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q2 2014 - For the Six Months Ending
2014 2013 Q2 2013 June 30,
---- ---- --------
Second First Fourth Third Second First Percent Percent
Statement of earnings Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
---------------------
Interest income - taxable equivalent basis $60,004 $57,810 $58,644 $46,083 $41,331 $40,371 45.18 $117,814 $81,702 44.20
Interest income $58,277 $56,177 $57,076 $44,638 $39,945 $38,945 45.89 $114,454 $78,890 45.08
Interest expense 6,108 6,206 6,408 5,890 5,541 5,564 10.23 12,314 11,105 10.89
Net interest income 52,169 49,971 50,668 38,748 34,404 33,381 51.64 102,140 67,785 50.68
Provision for loan losses 1,450 1,450 2,000 2,300 3,000 3,050 (51.67) 2,900 6,050 (52.07)
Net interest income after provision 50,719 48,521 48,668 36,448 31,404 30,331 61.50 99,240 61,735 60.75
Service charges on deposit accounts 6,194 5,915 6,165 5,361 4,509 4,500 37.37 12,109 9,009 34.41
Fees and commissions on loans and deposits 5,515 4,972 5,300 4,982 4,848 4,831 13.76 10,487 9,679 8.35
Insurance commissions and fees 2,088 1,863 1,869 1,295 951 861 119.56 3,951 1,812 118.05
Wealth management revenue 2,170 2,144 2,124 2,091 1,715 1,724 26.53 4,314 3,439 25.44
Securities gains (losses) - - - - - 54 - - 54 (100.00)
Gain on sale of mortgage loans 2,005 1,586 1,350 2,788 3,870 3,565 (48.19) 3,591 7,435 (51.70)
Gain on acquisition - - - - - - - - - -
Other 1,499 2,136 1,533 2,418 1,424 1,843 5.27 3,635 3,267 11.26
Total noninterest income 19,471 18,616 18,341 18,935 17,317 17,378 12.44 38,087 34,695 9.78
Salaries and employee benefits 29,810 28,428 29,911 25,689 21,906 21,274 36.08 58,238 43,180 34.87
Data processing 2,850 2,695 2,546 2,236 2,045 2,043 39.36 5,545 4,088 35.64
Occupancy and equipment 4,906 4,847 5,105 4,576 3,668 3,608 33.75 9,753 7,276 34.04
Other real estate 1,068 1,701 1,607 1,537 1,773 2,049 (39.76) 2,769 3,822 (27.55)
Amortization of intangibles 1,427 1,471 1,508 724 314 323 354.46 2,898 637 354.95
Merger-related expenses - 195 1,879 3,763 385 - (100.00) 195 385 (49.35)
Debt extinguishment penalty - - - - - - - - - -
Other 9,335 8,308 8,573 8,088 7,643 8,303 22.14 17,643 15,946 10.64
Total noninterest expense 49,396 47,645 51,129 46,613 37,734 37,600 30.91 97,041 75,334 28.81
Income before income taxes 20,794 19,492 15,880 8,770 10,987 10,109 89.26 40,286 21,096 90.97
Income taxes 5,941 5,895 4,620 2,133 2,968 2,538 100.17 11,836 5,506 114.97
Net income $14,853 $13,597 $11,260 $6,637 $8,019 $7,571 85.22 $28,450 $15,590 82.49
==========
Basic earnings per share $0.47 $0.43 $0.36 $0.24 $0.32 $0.30 46.88 $0.90 $0.62 45.16
Diluted earnings per share 0.47 0.43 0.36 0.24 0.32 0.30 46.88 0.90 0.62 45.16
Average basic shares outstanding 31,496,737 31,436,148 31,366,019 27,234,927 25,223,749 25,186,229 24.87 31,466,610 25,205,092 24.84
Average diluted shares outstanding 31,698,198 31,724,474 31,617,681 27,447,382 25,373,868 25,288,785 24.92 31,682,496 25,334,898 25.05
Common shares outstanding 31,519,641 31,480,395 31,387,668 31,358,583 25,231,074 25,208,733 24.92 31,519,641 25,231,074 24.92
Cash dividend per common share $0.17 $0.17 $0.17 $0.17 $0.17 $0.17 - $0.34 $0.34 -
Performance ratios
------------------
Return on average shareholders' equity 8.67% 8.19% 6.71% 4.75% 6.35% 6.12% 8.44% 6.24%
Return on average tangible shareholders' equity (1) 16.55% 16.05% 13.55% 8.74% 10.47% 10.19% 16.31% 10.34%
Return on average assets 1.02% 0.93% 0.78% 0.56% 0.76% 0.73% 0.98% 0.75%
Return on average tangible assets (2) 1.15% 1.05% 0.90% 0.63% 0.82% 0.79% 1.10% 0.80%
Net interest margin (FTE) 4.24% 4.04% 4.16% 3.86% 3.88% 3.89% 4.14% 3.89%
Yield on earning assets (FTE) 4.72% 4.53% 4.67% 4.42% 4.49% 4.51% 4.62% 4.50%
Cost of funding 0.48% 0.48% 0.51% 0.57% 0.60% 0.62% 0.48% 0.61%
Average earning assets to average assets 87.39% 87.35% 86.78% 87.43% 87.32% 86.31% 87.37% 86.82%
Average loans to average deposits 79.11% 77.00% 79.89% 81.69% 80.93% 80.30% 78.05% 80.62%
Noninterest income (less securities gains/
losses) to average assets 1.34% 1.27% 1.27% 1.59% 1.64% 1.67% 1.31% 1.66%
Noninterest expense (less debt prepayment penalties/
merger-related expenses) to average
assets 3.39% 3.25% 3.40% 3.59% 3.54% 3.63% 3.32% 3.58%
Net overhead ratio 2.06% 1.97% 2.14% 2.01% 1.90% 1.95% 2.01% 1.93%
Efficiency ratio (FTE)** 65.38% 65.48% 67.65% 71.25% 69.74% 71.51% 65.43% 70.61%
**Excludes debt extinguishment penalties, amortization of intangibles and merger-related expenses from noninterest expense and profit (loss) on sales of securities and gains on acquisitions from noninterest income
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q2 2014 - For the Six Months Ending
2014 2013 Q2 2013 June 30,
---- ---- --------
Second First Fourth Third Second First Percent Percent
Average balances Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
----------------
Total assets $5,836,607 $5,927,884 $5,741,794 $4,729,079 $4,231,947 $4,206,411 37.92 $5,881,993 $4,219,250 39.41
Earning assets 5,100,834 5,178,069 4,982,614 4,134,730 3,695,409 3,630,759 38.03 5,139,238 3,663,263 40.29
Securities 1,026,948 1,002,519 924,179 819,351 754,515 698,863 36.11 1,014,801 726,843 39.62
Mortgage loans held for sale 26,004 19,925 25,248 37,056 32,318 22,347 (19.54) 22,981 27,360 (16.01)
Loans, net of unearned 3,897,028 3,868,747 3,865,615 3,213,853 2,845,260 2,804,618 36.97 3,882,966 2,825,051 37.45
Intangibles 302,181 303,599 304,388 227,606 190,362 190,787 58.74 302,886 190,573 58.93
-
Noninterest-bearing deposits $905,180 $949,317 $888,888 $660,415 $562,104 $549,514 61.03 $927,126 $555,844 66.80
Interest-bearing deposits 4,020,754 4,074,746 3,949,909 3,273,658 2,953,435 2,943,247 36.14 4,047,601 2,948,369 37.28
Total deposits 4,925,934 5,024,063 4,838,797 3,934,073 3,515,539 3,492,761 40.12 4,974,727 3,504,213 41.96
Borrowed funds 169,373 170,091 173,583 189,909 164,894 163,981 2.72 169,730 164,440 3.22
Shareholders' equity 686,794 673,047 665,513 553,772 506,225 501,634 35.67 679,959 503,942 34.93
Q2 2014 - As of
2014 2013 Q4 2013 June 30,
---- ---- --------
Second First Fourth Third Second First Percent Percent
Balances at period end Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
---------------------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Total assets $5,826,020 $5,902,831 $5,746,270 $5,735,865 $4,242,401 $4,267,658 1.39 $5,826,020 $4,242,401 37.33
Earning assets 5,069,743 5,168,996 4,999,434 4,972,051 3,715,321 3,706,707 1.41 5,069,743 3,715,321 36.46
Securities 1,013,200 1,054,511 925,670 915,869 746,530 740,613 9.46 1,013,200 746,530 35.72
Mortgage loans held for sale 28,116 28,433 33,440 28,466 50,268 26,286 (15.92) 28,116 50,268 (44.07)
Loans acquired from M&F 694,115 746,047 813,451 891,420 - - (14.67) 694,115 - -
Loans not acquired 3,096,286 2,947,836 2,885,802 2,794,116 2,683,017 2,594,438 7.29 3,096,286 2,683,017 15.40
Loans acquired and subject to loss share 167,129 173,545 181,765 195,996 201,494 213,872 (8.05) 167,129 201,494 (17.06)
Total loans 3,957,530 3,867,428 3,881,018 3,881,532 2,884,511 2,808,310 1.97 3,957,530 2,884,511 37.20
Intangibles 301,478 302,903 304,330 305,065 190,208 190,522 (0.94) 301,478 190,208 58.50
Noninterest-bearing deposits $902,766 $914,964 $856,020 $876,138 $560,965 $567,065 5.46 $902,766 $560,965 60.93
Interest-bearing deposits 3,983,965 4,089,820 3,985,892 3,958,618 2,944,193 2,988,110 (0.05) 3,983,965 2,944,193 35.32
Total deposits 4,886,731 5,004,784 4,841,912 4,834,756 3,505,158 3,555,175 0.93 4,886,731 3,505,158 39.42
Borrowed funds 189,831 168,700 171,875 177,168 195,789 164,063 10.45 189,831 195,789 (3.04)
Shareholders' equity 688,215 676,715 665,652 657,256 500,678 502,375 3.39 688,215 500,678 37.46
Market value per common share $29.07 $29.05 $31.46 $27.17 $24.34 $22.38 (7.60) $29.07 $24.34 19.43
Book value per common share 21.83 21.50 21.21 20.96 19.84 19.93 2.92 21.83 19.84 10.03
Tangible book value per common share 12.27 11.87 11.51 11.23 12.31 12.37 6.60 12.27 12.31 (0.32)
Shareholders' equity to assets (actual) 11.81% 11.46% 11.58% 11.46% 11.80% 11.77% 1.97 11.81% 11.80% 0.11
Tangible capital ratio (3) 7.00% 6.68% 6.64% 6.49% 7.66% 7.65% 5.43 7.00% 7.66% (8.61)
Leverage ratio 8.91% 8.56% 8.68% 8.61% 9.83% 9.79% 2.65 8.91% 9.83% (9.36)
Tier 1 risk-based capital ratio 11.82% 11.55% 11.41% 11.34% 12.87% 12.86% 3.59 11.82% 12.87% (8.16)
Total risk-based capital ratio 12.96% 12.72% 12.58% 12.47% 14.14% 14.13% 3.02 12.96% 14.14% (8.35)
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q2 2014 - As of
2014 2013 Q4 2013 June 30,
---- ---- --------
Second First Fourth Third Second First Percent Percent
Loans not acquired Quarter Quarter Quarter Quarter Quarter Quarter Variance 2014 2013 Variance
------------------ ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Commercial, financial, agricultural $365,262 $347,828 $341,600 $331,142 $307,718 $298,013 6.93 $365,262 $307,718 18.70
Lease financing 1,767 612 52 75 103 162 3,298.08 1,767 103 1,615.53
Real estate - construction 172,319 149,450 147,075 127,013 117,339 109,484 17.16 172,319 117,339 46.86
Real estate - 1-4 family mortgages 966,546 941,260 928,803 891,422 859,884 834,204 4.06 966,546 859,884 12.40
Real estate - commercial mortgages 1,516,372 1,441,403 1,404,617 1,383,680 1,335,402 1,295,213 7.96 1,516,372 1,335,402 13.55
Installment loans to individuals 74,020 67,283 63,655 60,784 62,571 57,362 16.28 74,020 62,571 18.30
Loans, net of unearned $3,096,286 $2,947,836 $2,885,802 $2,794,116 $2,683,017 $2,594,438 7.29 $3,096,286 $2,683,017 15.40
======================
Loans acquired and subject to loss share by category
----------------------------------------------------
Commercial, financial, agricultural $7,677 $8,283 $9,546 $10,280 $10,283 $10,157 (19.58) $7,677 $10,283 (25.34)
Lease financing - - - - - - - - - -
Real estate - construction 1,648 1,648 1,648 1,648 1,648 1,648 - 1,648 1,648 -
Real estate - 1-4 family mortgages 49,616 52,252 54,466 56,722 60,409 65,489 (8.90) 49,616 60,409 (17.87)
Real estate - commercial mortgages 108,166 111,337 116,077 127,315 129,120 136,541 (6.82) 108,166 129,120 (16.23)
Installment loans to individuals 22 25 28 31 34 37 (21.43) 22 34 (35.29)
Loans, net of unearned $167,129 $173,545 $181,765 $195,996 $201,494 $213,872 (8.05) $167,129 $201,494 (17.06)
======================
Loans Acquired from M&F
-----------------------
Commercial, financial, agricultural $74,887 $84,004 $117,817 $139,821 $ - $ - (36.44) $74,887 $ - -
Lease financing - - - - - - - - - -
Real estate - construction 2,610 4,803 12,713 23,556 - - (79.47) 2,610 - -
Real estate - 1-4 family mortgages 205,126 217,748 224,965 244,079 - - (8.82) 205,126 - -
Real estate - commercial mortgages 390,781 415,418 429,878 449,589 - - (9.09) 390,781 - -
Installment loans to individuals 20,711 24,074 28,078 34,375 - - (26.24) 20,711 - -
Loans, net of unearned $694,115 $746,047 $813,451 $891,420 $ - $ - (14.67) $694,115 $ - -
======================
Asset quality data
------------------
Assets not acquired:
Nonaccrual loans $17,175 $18,365 $16,863 $19,995 $20,554 $25,382 1.85 $17,175 $20,554 (16.44)
Loans 90 past due or more 3,615 1,322 2,287 2,078 1,983 2,601 58.07 3,615 1,983 82.30
----- ----- ----- ----- ----- ----- ----- -----
Nonperforming loans 20,790 19,687 19,150 22,073 22,537 27,983 8.56 20,790 22,537 (7.75)
Other real estate owned 23,950 25,117 27,543 27,357 33,247 39,786 (13.05) 23,950 33,247 (27.96)
Nonperforming assets not acquired $44,740 $44,804 $46,693 $49,430 $55,784 $67,769 (4.18) $44,740 $55,784 (19.80)
======= =======
Assets acquired and subject to loss share:
Nonaccrual loans $41,425 $46,078 $49,194 $49,585 $47,281 $47,972 (15.79) $41,425 $47,281 (12.39)
Loans 90 past due or more - 32 - 505 126 - - - 126 (100.00)
--- --- --- --- --- --- --- ---
Non-performing loans subject to loss share 41,425 46,110 49,194 50,090 47,407 47,972 (15.79) 41,425 47,407 (12.62)
Other real estate owned 7,472 10,218 12,942 16,580 27,835 35,095 (42.27) 7,472 27,835 (73.16)
Nonperforming assets acquired and subject to loss share $48,897 $56,328 $62,136 $66,670 $75,242 $83,067 (21.31) $48,897 $75,242 (35.01)
======= ======= ======= ======= ======= ======= ======= =======
Assets acquired from M&F:
Nonaccrual loans $5,966 $6,393 $6,275 $224 $ - $ - (4.92) $5,966 $ - -
Loans 90 past due or more 5,057 1,922 1,899 8,568 - - 166.30 5,057 - -
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Nonperforming loans 11,023 8,315 8,174 8,792 - - 34.85 11,023 - -
Other real estate owned 10,381 12,406 12,402 13,223 - - (16.30) 10,381 - -
Nonperforming assets acquired from M&F $21,404 $20,721 $20,576 $22,015 $ - $ - 4.02 $21,404 $ - -
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Net loan charge-offs (recoveries) $2,195 $1,067 $584 $3,084 $2,471 $893 275.86 $3,262 $3,364 (3.03)
Allowance for loan losses 47,304 48,048 47,665 46,250 47,034 46,505 (0.76) 47,304 $47,034 0.57
Annualized net loan charge-offs / average loans 0.23% 0.11% 0.06% 0.38% 0.35% 0.13% 0.17% 0.24%
Nonperforming loans / total loans* 1.85% 1.92% 1.97% 2.09% 2.42% 2.70% 1.85% 2.42%
Nonperforming assets / total assets* 1.97% 2.06% 2.25% 2.41% 3.09% 3.53% 1.97% 3.09%
Allowance for loan losses / total loans* 1.20% 1.24% 1.23% 1.19% 1.63% 1.66% 1.20% 1.63%
Allowance for loan losses / nonperforming loans* 64.59% 64.83% 62.29% 57.13% 67.25% 61.23% 64.59% 67.25%
Nonperforming loans / total loans** 0.67% 0.67% 0.66% 0.79% 0.84% 1.08% 0.67% 0.84%
Nonperforming assets / total assets** 0.77% 0.76% 0.81% 0.86% 1.31% 1.59% 0.77% 1.31%
Allowance for loan losses / total loans** 1.53% 1.63% 1.65% 1.66% 1.75% 1.79% 1.53% 1.75%
Allowance for loan losses / nonperforming loans** 227.53% 244.06% 248.90% 209.53% 208.70% 166.19% 227.53% 208.70%
*Based on all assets (including acquired assets)
**Excludes assets acquired from M&F and assets covered under loss share
RENASANT CORPORATION
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(Unaudited)
(Dollars in thousands, except per share data)
RECONCILIATION OF GAAP TO NON-GAAP
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For the Six Months Ending
2014 2013 June 30,
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Second First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Quarter 2014 2013
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Net income (GAAP) $14,853 $13,597 $11,260 $6,637 $8,019 $7,571 $28,450 $15,590
Amortization of intangibles, net of
tax 1,019 1,026 1,069 548 229 242 2,047 471
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Tangible net income (non-GAAP) $15,872 $14,623 $12,329 $7,185 $8,248 $7,813 $30,497 $16,061
Average shareholders' equity (GAAP) $686,794 $673,047 $665,513 $553,772 $506,225 $501,634 $679,959 $503,942
Intangibles 302,181 303,599 304,388 227,606 190,362 190,787 302,886 190,573
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Average tangible shareholders' equity (non-GAAP) $384,613 $369,448 $361,125 $326,166 $315,863 $310,847 $377,073 $313,369
Average total assets (GAAP) $5,836,607 $5,927,884 $5,741,794 $4,729,079 $4,231,947 $4,206,411 $5,881,993 $4,219,250
Intangibles 302,181 303,599 304,388 227,606 190,362 190,787 302,886 190,573
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Average tangible assets (non-GAAP) $5,534,426 $5,624,285 $5,437,406 $4,501,473 $4,041,585 $4,015,624 $5,579,107 $4,028,677
Actual total assets (GAAP) $5,826,020 $5,902,831 $5,746,270 $5,735,865 $4,242,401 $4,267,658 $5,826,020 $4,242,401
Intangibles 301,478 302,903 304,330 305,065 190,208 190,522 301,478 190,208
Actual tangible assets (non-GAAP) $5,524,542 $5,599,928 $5,441,940 $5,430,800 $4,052,193 $4,077,136 $5,524,542 $4,052,193
(1) Return on Average Equity
Return on (average) shareholders' equity (GAAP) 8.67% 8.19% 6.71% 4.75% 6.35% 6.12% 8.44% 6.24%
Effect of adjustment for intangible
assets 7.88% 7.86% 6.83% 3.98% 4.12% 4.07% 7.87% 4.10%
Return on average tangible shareholders' equity (non-GAAP) 16.55% 16.05% 13.55% 8.74% 10.47% 10.19% 16.31% 10.34%
(2) Return on Average Assets
Return on (average) assets (GAAP) 1.02% 0.93% 0.78% 0.56% 0.76% 0.73% 0.98% 0.75%
Effect of adjustment for intangible
assets 0.13% 0.12% 0.12% 0.08% 0.06% 0.06% 0.13% 0.06%
Return on average tangible assets (non-GAAP) 1.15% 1.05% 0.90% 0.63% 0.82% 0.79% 1.10% 0.80%
(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP) 11.81% 11.46% 11.58% 11.46% 11.80% 11.77% 11.81% 11.80%
Effect of adjustment for intangible
assets 4.81% 4.79% 4.94% 4.97% 4.14% 4.12% 4.81% 4.14%
Tangible capital ratio (non-GAAP) 7.00% 6.68% 6.64% 6.49% 7.66% 7.65% 7.00% 7.66%
SOURCE Renasant Corporation
