Renasant Corporation Announces 2014 First Quarter Earnings

Apr 22, 2014, 17:00 ET from Renasant Corporation

TUPELO, Miss., April 22, 2014 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced its financial results for the first quarter of 2014. Net income for the first quarter of 2014 was $13,597,000, or basic and diluted earnings per share ("EPS") of $0.43, as compared to $7,571,000, or basic and diluted EPS of $0.30, for the first quarter of 2013.  The Company's balance sheet and results of operations as of and for the three months ending March 31, 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 first quarter of 2014, the Company's return on average assets and return on average equity were 0.93% and 8.19%, respectively, as compared to 0.73% and 6.12%, respectively, for the first quarter of 2013.  The Company's 2014 first quarter return on average tangible assets and return on average tangible equity were 1.05% and 16.05%, respectively, as compared to 0.79% and 10.19%, respectively, for the first quarter of 2013.

"Our first quarter results represent a strong beginning to 2014 as net income and EPS increased 80% and 43%, respectively, as compared to the same quarter last year," said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "With the operations of First M&F fully integrated, we believe we have made a strong start toward achieving our key performance goals and increasing profitability throughout 2014."

Total assets as of March 31, 2014, were approximately $5.90 billion, as compared to $4.27 billion as of March 31, 2013, and $5.7 billion on a linked quarter basis. The increase in assets at March 31, 2014, as compared to the same period in 2013 is due primarily to the First M&F acquisition. The increase in assets on a linked quarter basis is due to a seasonal influx of deposits, primarily in public fund deposits. Due to the short-term nature of these deposit influxes, the funds from these deposits remained in liquid assets (low-yielding interest bearing cash or short-term investments). The excess cash and short-term investments negatively impacted net interest margin by 15 basis points, leverage ratio by 16 basis points, tangible capital ratio by 12 basis points and return on average assets by 3 basis points.

Total deposits, including deposits acquired in the First M&F acquisition, were $5.0 billion at March 31, 2014, as compared to $3.56 billion at March 31, 2013, and $4.84 billion at December 31, 2013. The Company's noninterest-bearing deposits averaged approximately $949 million, or 18.9% of average deposits, for the first quarter of 2014, as compared to $550 million, or 15.7% of average deposits, for the first quarter of 2013. The Company's cost of funds was 48 basis points for the first quarter of 2014, as compared to 62 basis points for the same quarter in 2013. 

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 $3.87 billion at March 31, 2014, as compared to $2.81 billion at March 31, 2013. Excluding acquired loans, loans grew 13.6% to $2.95 billion at March 31, 2014, as compared to $2.59 billion at March 31, 2013. 

At March 31, 2014, the Company's Tier 1 leverage capital ratio was 8.56%, its Tier 1 risk-based capital ratio was 11.55% and its total risk-based capital ratio was 12.72%. In all capital ratio categories, the Company's regulatory capital ratios continued to be in excess of the regulatory minimums required to be classified as "well-capitalized." The Company's tangible common equity ratio was 6.68% as of March 31, 2014.

Net interest income was $50.0 million for the first quarter of 2014, as compared to $33.4 million for the first quarter of 2013, and $50.7 million for the fourth quarter of 2013. Net interest margin was 4.04% for the first quarter of 2014, as compared to 3.89% for the first quarter of 2013, and 4.16% for the fourth quarter of 2013. The primary factor causing the Company's linked quarter decline in net interest margin was the negative impact of the seasonal influx of public fund deposits and the resulting short-term liquidity described above.

Noninterest income was $18.6 million for the first quarter of 2014, as compared to $17.4 million for the first quarter of 2013, and $18.3 million for the fourth quarter of 2013. The Company's increase in noninterest income year-over-year is primarily attributable to the First M&F merger, notably a 31.44% increase in service charges and a 116.38% increase in insurance commissions and fees.

Noninterest expense was $47.6 million for the first quarter of 2014, as compared to $37.6 million for the first quarter of 2013, and $51.1 million for the fourth quarter of 2013. The Company recorded merger expenses associated with the First M&F acquisition of $195,000 and $1.9 million during the first quarter of 2014 and fourth quarter of 2013, respectively.  The Company did not record any merger expenses during the first quarter of 2013.  The Company's 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.

At March 31, 2014, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $74.1 million and total other real estate owned ("OREO") was $47.7 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 $54.4 million and $22.6 million, respectively at March 31, 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 $19.7 million as of March 31, 2014, as compared to $28.0 million as of March 31, 2013. Nonperforming loans as a percentage of total loans were 0.67% as of March 31, 2014, as compared to 1.08% as of March 31, 2013.

Annualized net charge-offs as a percentage of average loans were 0.11% for the first quarter of 2014, as compared to 0.13% for the first quarter of 2013. The Company recorded a provision for loan losses of $1.5 million for the first quarter of 2014, as compared to $3.1 million for the first quarter of 2013.

The allowance for loan losses totaled $48.0 million at March 31, 2014, as compared to $46.5 million as of March 31, 2013, and $47.7 million as of December 31, 2013. The allowance for loan losses as a percentage of loans was 1.63% as of March 31, 2014, as compared to 1.79% as of March 31, 2013.

The Company's coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 244.06% as of March 31, 2014, as compared to 166.19% as of March 31, 2013. Loans 30 to 89 days past due as a percentage of total loans declined to 0.25% at March 31, 2014, as compared to 0.32% at March 31, 2013.  

OREO was $25.1 million as of March 31, 2014, as compared to $39.8 million as of March 31, 2013. In addition, during the first quarter of 2014, the Company experienced a significant reduction in costs associated with OREO as OREO expense decreased approximately 16.98% as compared to the first quarter of 2013.

"Our key performance drivers, specifically loan pipelines, low-costing deposits, credit metrics and operational efficiencies, continue to show positive trends and healthy outlooks," stated McGraw.  "In addition, now that the acquired First M&F operations are fully integrated, we believe we are beginning to experience the full synergies of our combined companies, and we remain well positioned to take advantage of strategic growth opportunities when available."

CONFERENCE CALL INFORMATION:

A live audio webcast of a conference call with analysts will be available beginning at 10:00 a.m. Eastern Time on Wednesday, April 23, 2014.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst140423.html. To access the conference via telephone, dial 1-888-317-6016 in the United States and request the Renasant Corporation First Quarter 2014 Earnings Webcast and Conference Call. International participants should dial 1-412-317-6016 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 10044091 or by dialing 1-412-317-0088 internationally and entering the conference number.  Telephone replay access is available until 9:00 a.m. Eastern Time on May 8, 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 $5.9 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."

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q1 2014 -

For the Three Months Ending

2014

2013

Q1 2013

March 31,

First

Fourth

Third

Second

First

Percent

Percent

Statement of earnings

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2014

2013

Variance

Interest income - taxable equivalent basis

$          57,810

$          58,644

$          46,083

$          41,331

$          40,371

43.20

$              57,810

$          40,371

43.20

Interest income

$          56,177

$          57,076

$          44,638

$          39,945

$          38,945

44.25

$              56,177

$          38,945

44.25

Interest expense

6,206

6,408

5,890

5,541

5,564

11.54

6,206

5,564

11.54

Net interest income

49,971

50,668

38,748

34,404

33,381

49.70

49,971

33,381

49.70

Provision for loan losses

1,450

2,000

2,300

3,000

3,050

(52.46)

1,450

3,050

(52.46)

Net interest income after provision

48,521

48,668

36,448

31,404

30,331

59.97

48,521

30,331

59.97

Service charges on deposit accounts

5,915

6,165

5,361

4,509

4,500

31.44

5,915

4,500

31.44

Fees and commissions on loans and deposits

4,972

5,300

4,982

4,848

4,831

2.92

4,972

4,831

2.92

Insurance commissions and fees

1,863

1,869

1,295

951

861

116.38

1,863

861

116.38

Wealth management revenue

2,144

2,124

2,091

1,715

1,724

24.36

2,144

1,724

24.36

Securities gains (losses)

-

-

-

-

54

(100.00)

-

54

(100.00)

Gain on sale of mortgage loans

1,586

1,350

2,788

3,870

3,565

(55.51)

1,586

3,565

(55.51)

Gain on acquisition

-

-

-

-

-

-

-

-

-

Other

2,136

1,533

2,418

1,424

1,843

15.90

2,136

1,843

15.90

Total noninterest income

18,616

18,341

18,935

17,317

17,378

7.12

18,616

17,378

7.12

Salaries and employee benefits

28,428

29,911

25,689

21,906

21,274

33.63

28,428

21,274

33.63

Data processing

2,695

2,546

2,236

2,045

2,043

31.91

2,695

2,043

31.91

Occupancy and equipment

4,847

5,105

4,576

3,668

3,608

34.34

4,847

3,608

34.34

Other real estate

1,701

1,607

1,537

1,773

2,049

(16.98)

1,701

2,049

(16.98)

Amortization of intangibles

1,471

1,508

724

314

323

355.42

1,471

323

355.42

Merger-related expenses

195

1,879

3,763

385

-

-

195

-

-

Debt extinguishment penalty

-

-

-

-

-

-

-

-

-

Other

8,308

8,573

8,088

7,643

8,303

0.06

8,308

8,303

0.06

Total noninterest expense

47,645

51,129

46,613

37,734

37,600

26.72

47,645

37,600

26.72

Income before income taxes

19,492

15,880

8,770

10,987

10,109

92.82

19,492

10,109

92.82

Income taxes

5,895

4,620

2,133

2,968

2,538

132.27

5,895

2,538

132.27

Net income

$          13,597

$          11,260

$            6,637

$            8,019

$            7,571

79.59

$              13,597

$            7,571

79.59

Basic earnings per share

$              0.43

$              0.36

$              0.24

$              0.32

$              0.30

43.33

$                  0.43

$              0.30

43.33

Diluted earnings per share

0.43

0.36

0.24

0.32

0.30

43.33

0.43

0.30

43.33

Average basic shares outstanding

31,436,148

31,366,019

27,234,927

25,223,749

25,186,229

24.81

31,436,148

25,186,229

24.81

Average diluted shares outstanding

31,724,474

31,617,681

27,447,382

25,373,868

25,288,785

25.45

31,724,474

25,288,785

25.45

Common shares outstanding

31,480,395

31,387,668

31,358,583

25,231,074

25,208,733

24.88

31,480,395

25,208,733

24.88

Cash dividend per common share

$              0.17

$              0.17

$              0.17

$              0.17

$              0.17

-

$                  0.17

$              0.17

-

Performance ratios

Return on average shareholders' equity

8.19%

6.71%

4.75%

6.35%

6.12%

8.19%

6.12%

Return on average tangible shareholders' equity (1)

16.05%

13.55%

8.74%

10.47%

10.19%

16.05%

10.19%

Return on average assets

0.93%

0.78%

0.56%

0.76%

0.73%

0.93%

0.73%

Return on average tangible assets (2)

1.05%

0.90%

0.63%

0.82%

0.79%

1.05%

0.79%

Net interest margin (FTE)

4.04%

4.16%

3.86%

3.88%

3.89%

4.04%

3.89%

Yield on earning assets (FTE)

4.53%

4.67%

4.42%

4.49%

4.51%

4.53%

4.51%

Cost of funding

0.48%

0.51%

0.57%

0.60%

0.62%

0.48%

0.62%

Average earning assets to average assets

87.35%

86.78%

87.43%

87.32%

86.31%

87.35%

86.31%

Average loans to average deposits

77.00%

79.89%

81.69%

80.93%

80.30%

77.00%

80.30%

Noninterest income (less securities gains/

losses) to average assets

1.27%

1.27%

1.59%

1.64%

1.67%

1.27%

1.67%

Noninterest expense (less debt prepayment penalties/

merger-related expenses) to average assets

3.25%

3.40%

3.59%

3.54%

3.63%

3.25%

3.63%

Net overhead ratio

1.97%

2.14%

2.01%

1.90%

1.95%

1.97%

1.95%

Efficiency ratio (FTE)**

65.48%

67.65%

71.25%

69.74%

71.51%

65.48%

71.51%

**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)

Q1 2014 -

For the Three Months Ending

2014

2013

Q1 2013

March 31,

First

Fourth

Third

Second

First

Percent

Percent

Average balances

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2014

2013

Variance

Total assets

$     5,927,884

$     5,741,794

$     4,729,079

$     4,231,947

$     4,206,411

40.92

$         5,927,884

$     4,206,411

40.92

Earning assets

5,178,069

4,982,614

4,134,730

3,695,409

3,630,759

42.62

5,178,069

3,630,759

42.62

Securities

1,002,519

924,179

819,351

754,515

698,863

43.45

1,002,519

698,863

43.45

Mortgage loans held for sale

19,925

25,248

37,056

32,318

22,347

(10.84)

19,925

22,347

(10.84)

Loans, net of unearned

3,868,747

3,865,615

3,213,853

2,845,260

2,804,618

37.94

3,868,747

2,804,618

37.94

Intangibles

303,599

304,388

227,606

190,362

190,787

59.13

303,599

190,787

59.13

-

Noninterest-bearing deposits

$        949,317

$        888,888

$        660,415

$        562,104

$        549,514

72.76

$            949,317

$        549,514

72.76

Interest-bearing deposits

4,074,746

3,949,909

3,273,658

2,953,435

2,943,247

38.44

4,074,746

2,943,247

38.44

Total deposits

5,024,063

4,838,797

3,934,073

3,515,539

3,492,761

43.84

5,024,063

3,492,761

43.84

Borrowed funds

170,091

173,583

189,909

164,894

163,981

3.73

170,091

163,981

3.73

Shareholders' equity

673,047

665,513

553,772

506,225

501,634

34.17

673,047

501,634

34.17

Balances at period end

Total assets

$     5,902,831

$     5,746,270

$     5,735,865

$     4,242,401

$     4,267,658

38.32

$         5,902,831

$     4,267,658

38.32

Earning assets

5,168,996

4,999,434

4,972,051

3,715,321

3,706,707

39.45

5,168,996

3,706,707

39.45

Securities

1,054,511

925,670

915,869

746,530

740,613

42.38

1,054,511

740,613

42.38

Mortgage loans held for sale

28,433

33,440

28,466

50,268

26,286

8.17

28,433

26,286

8.17

Loans acquired from M&F

746,047

813,451

891,420

-

-

-

746,047

-

-

Loans not acquired

2,947,836

2,885,802

2,794,116

2,683,017

2,594,438

13.62

2,947,836

2,594,438

13.62

Loans acquired and subject to loss share

173,545

181,765

195,996

201,494

213,872

(18.86)

173,545

213,872

(18.86)

Total loans

3,867,428

3,881,018

3,881,532

2,884,511

2,808,310

37.71

3,867,428

2,808,310

37.71

Intangibles

302,903

304,330

305,065

190,208

190,522

58.99

302,903

190,522

58.99

Noninterest-bearing deposits

$        914,964

$        856,020

$        876,138

$        560,965

$        567,065

61.35

$            914,964

$        567,065

61.35

Interest-bearing deposits

4,089,820

3,985,892

3,958,618

2,944,193

2,988,110

36.87

4,089,820

2,988,110

36.87

Total deposits

5,004,784

4,841,912

4,834,756

3,505,158

3,555,175

40.77

5,004,784

3,555,175

40.77

Borrowed funds

168,700

171,875

177,168

195,789

164,063

2.83

168,700

164,063

2.83

Shareholders' equity

676,715

665,652

657,256

500,678

502,375

34.70

676,715

502,375

34.70

Market value per common share

$            29.05

$            31.46

$            27.17

$            24.34

$            22.38

29.80

$                29.05

$            22.38

29.80

Book value per common share

21.50

21.21

20.96

19.84

19.93

7.88

21.50

$            19.93

7.88

Tangible book value per common share

11.87

11.51

11.23

12.31

12.37

(4.04)

11.87

$            12.37

(4.04)

Shareholders' equity to assets (actual)

11.46%

11.58%

11.46%

11.80%

11.77%

(2.63)

11.46%

11.77%

(2.63)

Tangible capital ratio (3)

6.68%

6.64%

6.49%

7.66%

7.65%

(12.68)

6.68%

7.65%

(12.68)

Leverage ratio

8.56%

8.68%

8.61%

9.83%

9.79%

(12.56)

8.56%

9.79%

(12.56)

Tier 1 risk-based capital ratio

11.55%

11.41%

11.34%

12.87%

12.86%

(10.19)

11.55%

12.86%

(10.19)

Total risk-based capital ratio

12.72%

12.58%

12.47%

14.14%

14.13%

(9.98)

12.72%

14.13%

(9.98)

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q1 2014 -

For the Three Months Ending

2014

2013

Q1 2013

March 31,

First

Fourth

Third

Second

First

Percent

Percent

Loans not acquired

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2014

2013

Variance

Commercial, financial, agricultural

$        347,828

$        341,600

$        331,142

$        307,718

$        298,013

16.72

$            347,828

$        298,013

16.72

Lease financing

612

52

75

103

162

277.78

612

162

277.78

Real estate - construction

149,450

147,075

127,013

117,339

109,484

36.50

149,450

109,484

36.50

Real estate - 1-4 family mortgages

941,260

928,803

891,422

859,884

834,204

12.83

941,260

834,204

12.83

Real estate - commercial mortgages

1,441,403

1,404,617

1,383,680

1,335,402

1,295,213

11.29

1,441,403

1,295,213

11.29

Installment loans to individuals

67,283

63,655

60,784

62,571

57,362

17.30

67,283

57,362

17.30

Loans, net of unearned

$     2,947,836

$     2,885,802

$     2,794,116

$     2,683,017

$     2,594,438

13.62

$         2,947,836

$     2,594,438

13.62

Loans acquired and subject to loss share by category

Commercial, financial, agricultural

$            8,283

$            9,546

$          10,280

$          10,283

$          10,157

(18.45)

$                8,283

$          10,157

(18.45)

Lease financing

-

-

-

-

-

-

-

-

-

Real estate - construction

1,648

1,648

1,648

1,648

1,648

-

1,648

1,648

-

Real estate - 1-4 family mortgages

52,252

54,466

56,722

60,409

65,489

(20.21)

52,252

65,489

(20.21)

Real estate - commercial mortgages

111,337

116,077

127,315

129,120

136,541

(18.46)

111,337

136,541

(18.46)

Installment loans to individuals

25

28

31

34

37

(32.43)

25

37

(32.43)

Loans, net of unearned

$        173,545

$        181,765

$        195,996

$        201,494

$        213,872

(18.86)

$            173,545

$        213,872

(18.86)

Loans Acquired from M&F

Commercial, financial, agricultural

$          84,004

$        117,817

$        139,821

$                 -

$                 -

-

$              84,004

$                   -

-

Lease financing

-

-

-

-

-

-

-

-

-

Real estate - construction

4,803

12,713

23,556

-

-

-

4,803

-

-

Real estate - 1-4 family mortgages

217,748

224,965

244,079

-

-

-

217,748

-

-

Real estate - commercial mortgages

415,418

429,878

449,589

-

-

-

415,418

-

-

Installment loans to individuals

24,074

28,078

34,375

-

-

-

24,074

-

-

Loans, net of unearned

$        746,047

$        813,451

$        891,420

$                   -

$                   -

-

$            746,047

$                   -

-

Asset quality data

Assets not acquired:

Nonaccrual loans

$          18,365

$          16,863

$          19,995

$          20,554

$          25,382

(27.65)

$              18,365

$          25,382

(27.65)

Loans 90 past due or more

1,322

2,287

2,078

1,983

2,601

(49.17)

1,322

2,601

(49.17)

Nonperforming loans

19,687

19,150

22,073

22,537

27,983

(29.65)

19,687

27,983

(29.65)

Other real estate owned

25,117

27,543

27,357

33,247

39,786

(36.87)

25,117

39,786

(36.87)

Nonperforming assets not acquired

$          44,804

$          46,693

$          49,430

$          55,784

$          67,769

(33.89)

$              44,804

$          67,769

(33.89)

Assets acquired and subject to loss share:

Nonaccrual loans

$          46,078

$          49,194

$          49,585

$          47,281

$          47,972

(3.95)

$              46,078

$          47,972

(3.95)

Loans 90 past due or more

32

-

505

126

-

-

32

-

-

Non-performing loans subject to loss share

46,110

49,194

50,090

47,407

47,972

(3.88)

46,110

47,972

(3.88)

Other real estate owned

10,218

12,942

16,580

27,835

35,095

(70.88)

10,218

35,095

(70.88)

Nonperforming assets acquired and subject to loss share

$          56,328

$          62,136

$          66,670

$          75,242

$          83,067

(32.19)

$              56,328

$          83,067

(32.19)

Assets acquired from M&F:

Nonaccrual loans

$            6,393

$            6,275

$               224

$                   -

$                   -

-

$                6,393

$                   -

-

Loans 90 past due or more

1,922

1,899

8,568

-

-

-

1,922

-

-

Nonperforming loans

8,315

8,174

8,792

-

-

-

8,315

-

-

Other real estate owned

12,406

12,402

13,223

-

-

-

12,406

-

-

Nonperforming assets acquired from M&F

$          20,721

$          20,576

$          22,015

$                   -

$                   -

-

$              20,721

$                   -

-

Net loan charge-offs (recoveries)

$            1,067

$               584

$            3,084

$            2,471

$               893

19.48

$                1,067

$               893

19.48

Allowance for loan losses

48,048

47,665

46,250

47,034

46,505

3.32

48,048

$          46,505

3.32

Annualized net loan charge-offs / average loans

0.11%

0.06%

0.38%

0.35%

0.13%

0.11%

0.13%

Nonperforming loans / total loans*

0.76%

0.74%

0.84%

0.84%

1.08%

0.76%

1.08%

Nonperforming assets / total assets*

1.11%

1.17%

1.25%

1.31%

1.59%

1.11%

1.59%

Allowance for loan losses / total loans*

1.30%

1.29%

1.25%

1.75%

1.79%

1.30%

1.79%

Allowance for loan losses / nonperforming loans*

171.59%

174.44%

149.85%

208.70%

166.19%

171.59%

166.19%

Nonperforming loans / total loans**

0.67%

0.66%

0.79%

0.84%

1.08%

0.67%

1.08%

Nonperforming assets / total assets**

0.76%

0.81%

0.86%

1.31%

1.59%

0.76%

1.59%

Allowance for loan losses / total loans**

1.63%

1.65%

1.66%

1.75%

1.79%

1.63%

1.79%

Allowance for loan losses / nonperforming loans**

244.06%

248.90%

209.53%

208.70%

166.19%

244.06%

166.19%

*Based on assets not subject to loss share (includes assets acquired from M&F)

**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 Three Months Ending

2014

2013

March 31,

First

Fourth

Third

Second

First

Quarter

Quarter

Quarter

Quarter

Quarter

2014

2013

Net income (GAAP)

$          13,597

$          11,260

$            6,637

$            8,019

$            7,571

$              13,597

$            7,571

Amortization of intangibles, net of tax

1,026

1,069

548

229

242

1,026

242

Tangible net income (non-GAAP)

$          14,623

$          12,329

$            7,185

$            8,248

$            7,813

$              14,623

$            7,813

Average shareholders' equity (GAAP)

$        673,047

$        665,513

$        553,772

$        506,225

$        501,634

$            673,047

$        501,634

Intangibles

303,599

304,388

227,606

190,362

190,787

303,599

190,787

Average tangible shareholders' equity (non-GAAP)

$        369,448

$        361,125

$        326,166

$        315,863

$        310,847

$            369,448

$        310,847

Average total assets (GAAP)

$     5,927,884

$     5,741,794

$     4,729,079

$     4,231,947

$     4,206,411

$         5,927,884

$     4,206,411

Intangibles

303,599

304,388

227,606

190,362

190,787

303,599

190,787

Average tangible assets (non-GAAP)

$     5,624,285

$     5,437,406

$     4,501,473

$     4,041,585

$     4,015,624

$         5,624,285

$     4,015,624

Actual total assets (GAAP)

$     5,902,831

$     5,746,270

$     5,735,865

$     4,242,401

$     4,267,658

$         5,902,831

$     4,267,658

Intangibles

302,903

304,330

305,065

190,208

190,522

302,903

190,522

Actual tangible assets (non-GAAP)

$     5,599,928

$     5,441,940

$     5,430,800

$     4,052,193

$     4,077,136

$         5,599,928

$     4,077,136

(1) Return on Average Equity

Return on (average) shareholders' equity (GAAP)

8.19%

6.71%

4.75%

6.35%

6.12%

8.19%

6.12%

Effect of adjustment for intangible assets

7.86%

6.83%

3.98%

4.12%

4.07%

7.86%

4.07%

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

16.05%

13.55%

8.74%

10.47%

10.19%

16.05%

10.19%

(2) Return on Average Assets

Return on (average) assets (GAAP)

0.93%

0.78%

0.56%

0.76%

0.73%

0.93%

0.73%

Effect of adjustment for intangible assets

0.12%

0.12%

0.08%

0.06%

0.06%

0.12%

0.06%

Return on average tangible assets (non-GAAP)

1.05%

0.90%

0.63%

0.82%

0.79%

1.05%

0.79%

(3) Shareholder Equity Ratio

Shareholders' equity to (actual) assets (GAAP)

11.46%

11.58%

11.46%

11.80%

11.77%

11.46%

11.77%

Effect of adjustment for intangible assets

4.79%

4.94%

4.97%

4.14%

4.12%

4.79%

4.12%

Tangible capital ratio (non-GAAP)

6.68%

6.64%

6.49%

7.66%

7.65%

6.68%

7.65%

 

 

Contacts:

Media

Financials

John Oxford

Kevin Chapman

Vice President

Executive Vice President

Director of External Affairs

Chief Financial Officer

(662) 680-1219

(662) 680-1450

joxford@renasant.com

kchapman@renasant.com

 

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SOURCE Renasant Corporation



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