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Renasant Corporation Announces 2015 Second Quarter Earnings

July 21, 2015 5:15 PM EDT

TUPELO, Miss., July 21, 2015 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced financial results for the second quarter of 2015. Net income for the second quarter of 2015 was $15,394,000, or basic and diluted earnings per share ("EPS") of $0.49 and $0.48, respectively, as compared to $14,853,000, or basic and diluted EPS of $0.47, for the second quarter of 2014.

On July 1, 2015, the Company acquired by merger Heritage Financial Group, Inc. ("Heritage"), a bank holding company headquartered in Albany, Georgia, and the parent of HeritageBank of the South, a Georgia savings bank. The combined company has approximately $7.77 billion in total assets with 171 banking, mortgage, wealth management, investment and insurance offices throughout Mississippi, Tennessee, Alabama, Georgia and Florida.  During the second quarter of 2015, the Company incurred pre-tax merger expenses related to the Heritage merger of approximately $1,467,000, or $906,000 on an after-tax basis, which equated to a reduction of $0.03 in diluted EPS for the second quarter of 2015.

For the second quarter of 2015, the Company's return on average assets and return on average equity were 1.06% and 8.42%, respectively, as compared to 1.02% and 8.67%, respectively, for the second quarter of 2014.  The Company's 2015 second quarter return on average tangible assets and return on average tangible shareholders' equity were 1.17% and 14.89%, respectively, as compared to 1.15% and 16.55%, respectively, for the second quarter of 2014.

"We are pleased with our second quarter financial results highlighted by 16.37% annualized linked quarter non-acquired loan growth and strong revenue growth driven from our mortgage operations.  Focusing on profitability for the quarter, our diluted earnings per share of $0.48 continues to represent some of the highest quarterly operating earnings in the 111-year history of our company excluding quarters which recognized one-time gains associated with acquisitions," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw.  "The sustainability of this profitability is reflected in our return on average assets of 1.06% for the quarter, marking the fifth consecutive quarter we've achieved greater than 1.00% return on average assets."

Total assets as of June 30, 2015, were approximately $5.90 billion, as compared to $5.88 billion on a linked quarter basis and $5.81 billion as of December 31, 2014.

Total loans, including loans acquired in either the First M&F Corporation ("First M&F") merger or in FDIC-assisted transactions (collectively referred to as "acquired loans"), were approximately $4.04 billion at June 30, 2015, as compared to $3.95 billion on a linked quarter basis and $3.99 billion as of December 31, 2014.

Excluding acquired loans, loans grew 4.30%, or 8.67% annualized, to $3.41 billion at June 30, 2015, as compared to $3.27 billion at December 31, 2014 and increased 4.08%, or 16.37% annualized, from $3.27 billion at March 31, 2015.

Total deposits were $4.89 billion at June 30, 2015, as compared to $4.84 billion at December 31, 2014, and $4.89 billion at June 30, 2014. The Company's cost of funds was 40 basis points for the second quarter of 2015, as compared to 48 basis points for the same quarter in 2014.  The Company's noninterest-bearing deposits averaged approximately $970 million, or 19.97% of average total deposits, for the second quarter of 2015, as compared to $937 million, or 19.58% for the fourth quarter of 2014, and $905 million, or 18.38% for the second quarter of 2014.

At June 30, 2015, the Company's Tier 1 leverage capital ratio was 9.90%, its common equity Tier 1 capital ratio was 10.44%, its Tier 1 risk-based capital ratio was 12.52%, and its total risk-based capital ratio was 13.54%. The Company's regulatory capital ratios continued to be in excess of the regulatory minimums required to be classified as "well-capitalized."

"Looking at our capital levels, our tangible common equity ratio stands at 7.78% at June 30, 2015, which, coupled with our strong regulatory capital ratios, will continue to support future balance sheet growth whether organic or the result of additional external opportunity," said McGraw.

Net interest income was $51.67 million for the second quarter of 2015, as compared to $52.17 million for the second quarter of 2014. Net interest margin was 4.17% for the second quarter of 2015, compared to 4.24% for the second quarter of 2014. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans was $3.60 million in the second quarter of 2015, which increased net interest margin 28 basis points, compared to $3.52 million, which is a 28 basis point increase in net interest margin for the same period in 2014.

Noninterest income increased 17.70% to $22.92 million for the second quarter of 2015, as compared to $19.47 million for the second quarter of 2014. The increase in noninterest income was primarily attributable to growth in the Company's mortgage operations and resulting mortgage income.

Noninterest expense was $51.18 million for the second quarter of 2015, as compared to approximately $49.40 million for the second quarter of 2014.  The increase in the Company's noninterest expense was primarily attributable to an increase in salary and employee benefits as well as merger related expenses.  The increase in salaries and employee benefits was due to higher levels of commissions paid in our mortgage banking division. 

At June 30, 2015, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $44.26 million, and total other real estate owned ("OREO") was $27.06 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 $23.10 million and $12.10 million, respectively at June 30, 2015.

Since the acquired nonperforming assets were recorded at fair value at the time of acquisition and/or are 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 $21.16 million as of June 30, 2015, as compared to $20.19 million at December 31, 2014. Nonperforming loans as a percentage of total loans were 0.62% as of June 30, 2015 and December 31, 2014.  The increase in nonperforming loans at June 30, 2015, was primarily due to a $2.8 million matured loan which was carried as 90 days past due at June 30, 2015 but has since been resolved through pay-off.

Annualized net charge-offs as a percentage of average loans were 0.16% for the second quarter of 2015, as compared to 0.23% for the same period in 2014. The Company recorded a provision for loan losses of $1.18 million for the second quarter of 2015, as compared to $1.45 million for the second quarter of 2014.

The allowance for loan losses totaled $41.89 million at June 30, 2015, as compared to $42.29 million as of December 31, 2014. The allowance for loan losses as a percentage of loans was 1.23% as of June 30, 2015, as compared to 1.29% as of December 31, 2014.

The Company's coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 197.95% as of June 30, 2015, as compared to 209.49% as of December 31, 2014.   Loans 30 to 89 days past due as a percentage of total loans were 0.19% at June 30, 2015, as compared to 0.32% at December 31, 2014.

OREO was $14.97 million as of June 30, 2015, as compared to $17.09 million at December 31, 2014.

"We continue to see many opportunities on the horizon, specifically strong commercial loan pipelines which support our annual loan growth goals with a robust mortgage loan pipeline, both of which should drive continued revenue growth," stated McGraw. "With the addition of the Heritage team, its customers and operations, we continue to be well positioned to accelerate profitability and earnings growth, which in turn, we believe will generate shareholder value."

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 22, 2015.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst150722. 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 10069391 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until August 5, 2015.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 111-year-old financial services institution, and Renasant Insurance. Renasant has assets of approximately $7.77 billion and operates more than 170 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 "average tangible shareholders' equity").  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:

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

[email protected] 

[email protected]

 

 

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q2 2015 -

For the Six Months Ending

2015

2014

Q2 2014

June 30,

Second

First

Fourth

Third

Second

First

Percent

Percent

Statement of earnings

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2015

2014

Variance

Interest income - taxable equivalent basis

$          58,516

$          55,910

$          57,335

$          58,098

$            60,002

$          57,811

(2.48)

$        114,426

$         117,813

(2.87)

Interest income 

$          56,769

$          54,166

$          55,596

$          56,358

$            58,277

$          56,177

(2.59)

$        110,935

$         114,454

(3.07)

Interest expense

5,099

5,324

5,580

5,886

6,108

6,206

(16.52)

10,423

12,314

(15.36)

Net interest income

51,670

48,842

50,016

50,472

52,169

49,971

(0.96)

100,512

102,140

(1.59)

Provision for loan losses

1,175

1,075

1,050

2,217

1,450

1,450

(18.97)

2,250

2,900

(22.41)

Net interest income after provision

50,495

47,767

48,966

48,255

50,719

48,521

(0.44)

98,262

99,240

(0.99)

Service charges on deposit accounts

6,092

5,933

6,526

6,747

6,193

5,916

(1.63)

12,025

12,109

(0.69)

Fees and commissions on loans and deposits

5,384

4,894

5,150

6,237

5,515

4,972

(2.38)

10,278

10,487

(1.99)

Insurance commissions and fees

2,119

1,967

1,973

2,270

2,088

1,863

1.48

4,086

3,951

3.42

Wealth management revenue

2,248

2,190

2,144

2,197

2,170

2,144

3.59

4,438

4,314

2.87

Securities gains (losses) 

96

-

-

375

-

-

-

96

-

-

Gain on sale of mortgage loans

5,407

4,633

2,369

2,635

2,006

1,585

169.54

10,040

3,591

179.59

Gain on acquisition

-

-

-

-

-

-

-

-

-

-

Other

1,571

2,287

1,809

2,102

1,499

2,136

4.80

3,858

3,635

6.13

Total noninterest income

22,917

21,904

19,971

22,563

19,471

18,616

17.70

44,821

38,087

17.68

Salaries and employee benefits

30,394

28,260

27,301

29,569

29,810

28,428

1.96

58,654

58,238

0.71

Data processing

3,152

3,181

2,949

2,906

2,850

2,695

10.60

6,333

5,545

14.21

Occupancy and equipment

5,524

5,559

5,146

5,353

4,906

4,847

12.60

11,083

9,753

13.64

Other real estate

954

532

723

1,101

1,068

1,701

(10.67)

1,486

2,769

(46.33)

Amortization of intangibles

1,239

1,275

1,327

1,381

1,427

1,471

(13.17)

2,514

2,898

(13.25)

Merger-related expenses

1,467

478

499

-

-

195

-

1,945

195

897.44

Debt extinguishment penalty

-

-

-

-

-

-

-

-

-

-

Other

8,446

8,129

8,034

7,865

9,335

8,308

(9.52)

16,575

17,643

(6.05)

Total noninterest expense

51,176

47,414

45,979

48,175

49,396

47,645

3.60

98,590

97,041

1.60

Income before income taxes

22,236

22,257

22,958

22,643

20,794

19,492

6.93

44,493

40,286

10.44

Income taxes

6,842

7,017

7,361

7,108

5,941

5,895

15.17

13,859

11,836

17.09

Net income 

$          15,394

$          15,240

$          15,597

$          15,535

$            14,853

$          13,597

3.64

$          30,634

$           28,450

7.68

Basic earnings per share

$              0.49

$              0.48

$              0.49

$              0.49

$                0.47

$              0.43

4.26

$              0.97

$               0.90

7.78

Diluted earnings per share

0.48

0.48

0.49

0.49

0.47

0.43

2.13

0.96

0.90

6.67

Average basic shares outstanding

31,626,059

31,576,275

31,537,278

31,526,423

31,496,737

31,436,148

0.41

31,601,304

31,466,610

0.43

Average diluted shares outstanding

31,865,172

31,815,710

31,781,734

31,718,529

31,698,198

31,668,362

0.53

31,834,257

31,682,496

0.48

Common shares outstanding

31,644,706

31,604,937

31,545,145

31,533,703

31,519,641

31,480,395

0.40

31,644,706

31,519,641

0.40

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

8.42%

8.59%

8.72%

8.84%

8.67%

8.19%

8.50%

8.44%

Return on average tangible shareholders' equity (1)

14.89%

15.45%

15.90%

16.50%

16.55%

16.05%

15.16%

16.31%

Return on average assets

1.06%

1.06%

1.08%

1.07%

1.02%

0.93%

1.06%

0.98%

Return on average tangible assets (2)

1.17%

1.18%

1.20%

1.20%

1.15%

1.05%

1.18%

1.10%

Net interest margin (FTE)

4.17%

4.03%

4.09%

4.12%

4.24%

4.04%

4.10%

4.12%

Yield on earning assets (FTE)

4.57%

4.45%

4.53%

4.58%

4.72%

4.53%

4.51%

4.60%

Cost of funding

0.40%

0.43%

0.45%

0.47%

0.48%

0.48%

0.42%

0.48%

Average earning assets to average assets

87.79%

87.49%

87.41%

87.32%

87.39%

87.35%

87.64%

87.79%

Average loans to average deposits

81.93%

81.44%

82.67%

82.26%

79.11%

77.00%

81.69%

78.05%

Noninterest income (less securities gains/

losses) to average assets

1.57%

1.53%

1.38%

1.53%

1.34%

1.27%

1.55%

1.31%

Noninterest expense (less debt prepayment penalties/

merger-related expenses) to average assets

3.41%

3.27%

3.14%

3.32%

3.39%

3.25%

3.34%

3.32%

Net overhead ratio

1.84%

1.74%

1.76%

1.79%

2.06%

1.97%

1.79%

2.01%

Efficiency ratio (FTE) (4)

63.58%

62.99%

61.56%

62.90%

65.38%

65.48%

63.29%

65.43%

 

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q2 2015 -

For the Six Months Ending

2015

2014

Q2 2014

June 30,

Second

First

Fourth

Third

Second

First

Percent

Percent

Average balances

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2015

2014

Variance

Total assets

$     5,847,539

$     5,821,758

$     5,746,146

$     5,758,083

$       5,836,607

$     5,927,884

0.19

$     5,834,718

$      5,881,993

(0.80)

Earning assets

5,133,567

5,093,224

5,022,647

5,027,805

5,100,833

5,178,069

0.64

5,113,507

5,163,613

(0.97)

Securities

999,962

989,743

979,052

1,001,548

1,026,948

1,002,519

(2.63)

994,881

1,014,801

(1.96)

Mortgage loans held for sale

87,435

50,918

27,443

31,832

26,004

19,925

236.24

69,277

22,981

201.45

Loans, net of unearned

3,978,514

3,969,244

3,954,606

3,937,142

3,897,027

3,868,747

2.09

3,973,905

3,882,966

2.34

Intangibles

295,441

296,682

297,978

300,725

302,181

303,599

(2.23)

296,058

302,886

(2.25)

Noninterest-bearing deposits

$        969,770

$        932,011

$        936,672

$        896,856

$          905,180

$        949,317

7.14

$        950,995

$         927,126

2.57

Interest-bearing deposits

3,886,199

3,941,863

3,846,891

3,889,133

4,020,754

4,074,745

(3.35)

3,913,877

4,047,601

(3.30)

Total deposits

4,855,969

4,873,874

4,783,563

4,785,988

4,925,934

5,024,063

(1.42)

4,864,872

4,974,727

(2.21)

Borrowed funds

204,884

168,758

190,928

214,017

169,373

170,091

20.97

186,921

169,730

10.13

Shareholders' equity

733,158

719,687

709,780

697,103

686,794

673,046

6.75

726,460

679,959

6.84

Q2 2015 - 

As of

2015

2014

Q4 2014

June 30,

Second

First

Fourth

Third

Second

First

Percent

Percent

Balances at period end

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2015

2014

Variance

Total assets

$     5,899,190

$     5,882,098

$     5,805,129

$     5,751,711

$       5,826,020

$     5,902,831

1.62

$     5,899,190

$      5,826,020

1.26

Earning assets

5,186,419

5,168,497

5,063,039

5,053,252

5,063,873

5,161,173

2.44

5,186,419

5,063,873

2.42

Securities

965,290

1,016,393

983,747

980,328

1,007,331

1,046,688

(1.88)

965,290

1,007,331

(4.17)

Mortgage loans held for sale

108,023

102,780

25,628

30,451

28,116

28,433

321.50

108,023

28,116

284.20

Loans acquired from M&F

507,653

553,574

577,347

636,628

694,115

746,047

(12.07)

507,653

694,115

(26.86)

Loans not acquired

3,407,925

3,274,314

3,267,486

3,165,492

3,096,286

2,947,836

4.30

3,407,925

3,096,286

10.06

Loans acquired and subject to loss share

121,626

125,773

143,041

155,319

167,129

173,545

(14.97)

121,626

167,129

(27.23)

Total loans

4,037,204

3,953,661

3,987,874

3,957,439

3,957,530

3,867,428

1.24

4,037,204

3,957,530

2.01

Intangibles

294,808

296,053

297,330

298,609

301,478

302,903

(0.85)

294,808

301,478

(2.21)

Noninterest-bearing deposits

$        972,672

$        959,351

$        919,872

$        935,544

$          902,766

$        914,964

5.74

$        972,672

$         902,766

7.74

Interest-bearing deposits

3,917,772

3,983,419

3,918,546

3,828,126

3,983,965

4,089,820

(0.02)

3,917,772

3,983,965

(1.66)

Total deposits

4,890,444

4,942,770

4,838,418

4,763,670

4,886,731

5,004,784

1.08

4,890,444

4,886,731

0.08

Borrowed funds

219,089

162,313

188,825

227,664

189,830

168,700

16.03

219,089

189,830

15.41

Shareholders' equity

730,976

723,196

711,651

700,475

688,215

676,715

2.72

730,976

688,215

6.21

Market value per common share

$            32.60

$            30.05

$            28.93

$            27.05

$              29.07

$            29.05

12.69

$            32.60

$             29.07

12.14

Book value per common share

23.10

22.88

22.56

22.21

21.83

21.50

2.39

23.10

21.83

5.82

Tangible book value per common share

13.78

13.52

13.13

12.74

12.27

11.87

4.95

13.78

12.27

12.31

Shareholders' equity to assets (actual)

12.39%

12.29%

12.26%

12.18%

11.81%

11.46%

12.39%

11.81%

Tangible capital ratio (3)

7.78%

7.65%

7.52%

7.37%

7.00%

6.68%

7.78%

7.00%

Leverage ratio

9.90%

9.74%

9.53%

9.31%

8.91%

8.56%

9.90%

8.91%

Common equity tier 1 capital ratio

10.44%

10.35%

N/A

N/A

N/A

N/A

10.44%

N/A

Tier 1 risk-based capital ratio

12.52%

12.47%

12.45%

12.28%

11.82%

11.54%

12.52%

11.82%

Total risk-based capital ratio

13.54%

13.51%

13.54%

13.43%

12.96%

12.70%

13.54%

12.96%

 

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q2 2015 - 

As of

2015

2014

Q4 2014

June 30,

Second

First

Fourth

Third

Second

First

Percent

Percent

Loans not acquired

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2015

2014

Variance

Commercial, financial, agricultural

$        437,181

$        418,752

$        418,501

$        378,802

$          365,262

$        347,828

4.46

$        437,181

$         365,262

19.69

Lease financing

17,633

11,560

10,114

5,377

1,767

612

74.34

17,633

1,767

897.91

Real estate - construction

212,071

200,966

210,837

193,787

172,319

149,449

0.59

212,071

172,319

23.07

Real estate - 1-4 family mortgages

1,073,816

1,025,264

1,014,412

984,778

966,546

941,260

5.86

1,073,816

966,546

11.10

Real estate - commercial mortgages

1,589,969

1,542,706

1,538,950

1,527,680

1,516,372

1,441,404

3.32

1,589,969

1,516,372

4.85

Installment loans to individuals

77,255

75,066

74,672

75,068

74,020

67,283

3.46

77,255

74,020

4.37

Loans, net of unearned

$     3,407,925

$     3,274,314

$     3,267,486

$     3,165,492

$       3,096,286

$     2,947,836

4.30

$     3,407,925

$      3,096,286

10.06

Loans acquired and subject to loss share by category

Commercial, financial, agricultural

$            3,726

$            3,917

$            6,684

$            7,699

$              7,677

$            8,283

(44.25)

$            3,726

$             7,677

(51.47)

Lease financing

-

-

-

-

-

-

-

-

-

-

Real estate - construction

-

-

-

1,648

1,648

1,648

-

-

1,648

(100.00)

Real estate - 1-4 family mortgages

40,333

42,758

44,017

46,354

49,616

52,252

(8.37)

40,333

49,616

(18.71)

Real estate - commercial mortgages

77,536

79,064

92,304

99,579

108,166

111,337

(16.00)

77,536

108,166

(28.32)

Installment loans to individuals

31

34

36

39

22

25

(13.89)

31

22

40.91

Loans, net of unearned

$        121,626

$        125,773

$        143,041

$        155,319

$          167,129

$        173,545

(14.97)

$        121,626

$         167,129

(27.23)

Loans Acquired from M&F

Commercial, financial, agricultural

$          39,652

$          52,119

$          58,098

$          64,058

$            74,887

$          84,005

(31.75)

$          39,652

$           74,887

(47.05)

Lease financing

-

-

-

-

-

-

-

-

-

-

Real estate - construction

505

483

1,224

1,631

2,610

4,803

(58.74)

505

2,610

(80.65)

Real estate - 1-4 family mortgages

161,765

171,433

177,931

190,447

205,126

217,748

(9.09)

161,765

205,126

(21.14)

Real estate - commercial mortgages

295,484

317,224

325,660

363,793

390,781

415,417

(9.27)

295,484

390,781

(24.39)

Installment loans to individuals

10,247

12,315

14,434

16,699

20,711

24,074

(29.01)

10,247

20,711

(50.52)

Loans, net of unearned

$        507,653

$        553,574

$        577,347

$        636,628

$          694,115

$        746,047

(12.07)

$        507,653

$         694,115

(26.86)

Asset quality data

Assets not acquired:

Nonaccrual loans

$          15,514

$          17,719

$          18,781

$          19,070

$            17,175

$          18,365

(17.40)

$          15,514

$           17,175

(9.67)

Loans 90 past due or more

5,647

1,193

1,406

7,177

3,615

1,322

301.64

5,647

3,615

56.21

Nonperforming loans

21,161

18,912

20,187

26,247

20,790

19,687

4.82

21,161

20,790

1.78

Other real estate owned

14,967

16,735

17,087

20,461

23,950

25,117

(12.41)

14,967

23,950

(37.51)

Nonperforming assets not acquired

$          36,128

$          35,647

$          37,274

$          46,708

$            44,740

$          44,804

(3.07)

$          36,128

$           44,740

(19.25)

Assets acquired and subject to loss share:

Nonaccrual loans

$          19,487

$          18,040

$          24,172

$          33,216

$            41,425

$          46,078

(19.38)

$          19,487

$           41,425

(52.96)

Loans 90 past due or more

-

-

48

1,979

-

32

(100.00)

-

-

-

Non-performing loans subject to loss share

19,487

18,040

24,220

35,195

41,425

46,110

(19.54)

19,487

41,425

(52.96)

Other real estate owned

3,853

4,325

6,368

4,033

7,472

10,218

(39.49)

3,853

7,472

(48.43)

Nonperforming assets acquired and subject to loss share

$          23,340

$          22,365

$          30,588

$          39,228

$            48,897

$          56,328

(23.70)

$          23,340

$           48,897

(52.27)

Assets acquired from M&F:

Nonaccrual loans

$            1,085

$            1,627

$            1,443

$            1,991

$              5,966

$            6,393

(24.81)

$            1,085

$             5,966

(81.81)

Loans 90 past due or more

2,523

9,636

9,259

8,375

5,057

1,922

(72.75)

2,523

5,057

(50.11)

Nonperforming loans

3,608

11,263

10,702

10,366

11,023

8,315

(66.29)

3,608

11,023

(67.27)

Other real estate owned

8,244

10,626

11,017

9,565

10,381

12,406

(25.17)

8,244

10,381

(20.59)

Nonperforming assets acquired from M&F

$          11,852

$          21,889

$          21,719

$          19,931

$            21,404

$          20,721

(45.43)

$          11,852

$           21,404

(44.63)

Net loan charge-offs (recoveries)

$            1,589

$            1,062

$            3,330

$            4,952

$              2,194

$            1,067

(52.28)

$            2,651

$             3,261

(18.71)

Allowance for loan losses

41,888

42,302

42,289

44,569

47,304

48,048

(0.95)

41,888

$           47,304

(11.45)

Annualized net loan charge-offs / average loans

0.16%

0.11%

0.33%

0.50%

0.23%

0.11%

0.13%

0.17%

Nonperforming loans / total loans* 

1.10%

1.22%

1.38%

1.81%

1.85%

1.92%

1.10%

1.85%

Nonperforming assets / total assets*

1.21%

1.36%

1.54%

1.84%

1.97%

2.06%

1.21%

1.97%

Allowance for loan losses / total loans*

1.04%

1.07%

1.06%

1.13%

1.20%

1.24%

1.04%

1.20%

Allowance for loan losses / nonperforming loans*

94.65%

87.74%

76.74%

62.07%

64.59%

64.83%

94.65%

64.59%

Nonperforming loans / total loans** 

0.62%

0.58%

0.62%

0.83%

0.67%

0.67%

0.62%

0.67%

Nonperforming assets / total assets**

0.61%

0.61%

0.64%

0.81%

0.77%

0.76%

0.61%

0.77%

Allowance for loan losses / total loans**

1.23%

1.29%

1.29%

1.41%

1.53%

1.63%

1.23%

1.53%

Allowance for loan losses / nonperforming loans**

197.95%

223.68%

209.49%

169.81%

227.53%

244.06%

197.95%

227.53%

*Based on all assets (including acquired assets)

**Excludes assets acquired from M&F and assets covered under loss share

 

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

RECONCILIATION OF GAAP TO NON-GAAP

For the Six Months Ending

2015

2014

June 30,

Second

First

Fourth

Third

Second

First

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

2015

2014

Net income (GAAP)

$          15,394

$          15,240

$          15,597

$          15,535

$            14,853

$          13,597

$          30,634

$           28,450

Amortization of intangibles, net of tax

858

873

902

947

1,019

1,026

1,731

2,047

Tangible net income (non-GAAP)

$          16,252

$          16,113

$          16,499

$          16,482

$            15,872

$          14,623

$          32,365

$           30,497

Average shareholders' equity (GAAP)

$        733,158

$        719,687

$        709,780

$        697,103

$          686,794

$        673,046

$        726,460

$         679,959

Intangibles

295,441

296,682

297,978

300,725

302,181

303,599

296,058

302,886

Average tangible shareholders' equity (non-GAAP)

$        437,717

$        423,005

$        411,802

$        396,378

$          384,613

$        369,447

$        430,402

$         377,073

Average total assets (GAAP)

$     5,847,539

$     5,821,758

$     5,746,146

$     5,758,083

$       5,836,607

$     5,927,884

$     5,834,718

$      5,881,993

Intangibles

295,441

296,682

297,978

300,725

302,181

303,599

296,058

302,886

Average tangible assets (non-GAAP)

$     5,552,098

$     5,525,076

$     5,448,168

$     5,457,358

$       5,534,426

$     5,624,285

$     5,538,660

$      5,579,107

Actual total assets (GAAP)

$     5,899,190

$     5,882,098

$     5,805,129

$     5,751,711

$       5,826,020

$     5,902,831

$     5,899,190

$      5,826,020

Intangibles

294,808

296,053

297,330

298,609

301,478

302,903

294,808

301,478

Actual tangible assets (non-GAAP)

$     5,604,382

$     5,586,045

$     5,507,799

$     5,453,102

$       5,524,542

$     5,599,928

$     5,604,382

$      5,524,542

(1) Return on Average Equity

Return on (average) shareholders' equity (GAAP)

8.42%

8.59%

8.72%

8.84%

8.67%

8.19%

8.50%

8.44%

Effect of adjustment for intangible assets

6.47%

6.86%

7.18%

7.66%

7.88%

7.86%

6.66%

7.87%

Return on average tangible shareholders' equity (non-GAAP)

14.89%

15.45%

15.90%

16.50%

16.55%

16.05%

15.16%

16.31%

(2) Return on Average Assets

Return on (average) assets (GAAP)

1.06%

1.06%

1.08%

1.07%

1.02%

0.93%

1.06%

0.98%

Effect of adjustment for intangible assets

0.11%

0.12%

0.12%

0.13%

0.13%

0.12%

0.12%

0.13%

Return on average tangible assets (non-GAAP)

1.17%

1.18%

1.20%

1.20%

1.15%

1.05%

1.18%

1.10%

(3) Shareholder Equity Ratio 

Shareholders' equity to (actual) assets (GAAP)

12.39%

12.29%

12.26%

12.18%

11.81%

11.46%

12.39%

11.81%

Effect of adjustment for intangible assets

4.61%

4.65%

4.74%

4.81%

4.81%

4.79%

4.61%

4.81%

Tangible capital ratio (non-GAAP)

7.78%

7.65%

7.52%

7.37%

7.00%

6.68%

7.78%

7.00%

CALCULATION OF EFFICIENCY RATIO

Interest income (FTE)

$          58,516

$          55,910

$          57,335

$          58,098

$            60,002

$          57,811

$        114,426

$         117,813

Interest expense

5,099

5,324

5,580

5,886

6,108

6,206

10,423

12,314

Net Interest income (FTE)

$          53,417

$          50,586

$          51,755

$          52,212

$            53,894

$          51,605

$        104,003

$         105,499

Total noninterest income 

$          22,917

$          21,904

$          19,971

$          22,563

$            19,471

$          18,616

$          44,821

$           38,087

Securities gains (losses) 

96

-

-

375

-

-

96

-

Gain on acquisition

-

-

-

-

-

-

-

-

Total noninterest income 

$          22,821

$          21,904

$          19,971

$          22,188

$            19,471

$          18,616

$          44,725

$           38,087

Total Income (FTE)

$          76,238

$          72,490

$          71,726

$          74,400

$            73,365

$          70,221

$        148,728

$         143,586

Total noninterest expense

$          51,176

$          47,414

$          45,979

$          48,175

$            49,396

$          47,645

$          98,590

$           97,041

Amortization of intangibles

1,239

1,275

1,327

1,381

1,427

1,471

2,514

2,898

Merger-related expenses

1,467

478

499

-

-

195

1,945

195

Debt extinguishment penalty

-

-

-

-

-

-

-

-

Total noninterest expense 

$          48,470

$          45,661

$          44,153

$          46,794

$            47,969

$          45,979

$          94,131

$           93,948

(4) Efficiency Ratio

63.58%

62.99%

61.56%

62.90%

65.38%

65.48%

63.29%

65.43%

 

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/renasant-corporation-announces-2015-second-quarter-earnings-300116654.html

SOURCE Renasant Corporation



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