Renasant Corporation Announces 2015 Fourth Quarter And Year-End Results

19 Jan, 2016, 17:21 ET from Renasant Corporation

TUPELO, Miss., Jan. 19, 2016 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced earnings results for the fourth quarter and year ended December 31, 2015. Net income for the fourth quarter of 2015 was approximately $21.2 million, up 35.67%, as compared to $15.6 million for the fourth quarter of 2014. Basic and diluted earnings per share ("EPS") were $0.53 and $0.52, respectively, for the fourth quarter of 2015, as compared to basic and diluted EPS of $0.49 for the fourth quarter of 2014.  Excluding the impact of after-tax merger expenses incurred during each quarter, basic and diluted EPS were $0.55 for the fourth quarter of 2015, as compared to basic and diluted EPS of $0.50 for the fourth quarter of 2014.

Net income for 2015 was $­­­­68.0 million, as compared to $59.6 million for 2014. Basic and diluted EPS were$1.89 and $1.88, respectively, for both 2015 and 2014.  Excluding the impact of after-tax merger expenses incurred during each year, basic and diluted EPS were $2.10 and $2.08, respectively, for 2015, as compared to basic and diluted EPS of $1.90 and $1.89, respectively, for 2014.

On July 1, 2015, the Company completed the acquisition of 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 Company's balance sheet and results of operations as of and for the year ended December 31, 2015, include the impact of Heritage's operations since the acquisition date.  At the acquisition date, Heritage had $2.02 billion in total assets, $1.11 billion in loans, and $1.37 billion in deposits.  The assets acquired and liabilities assumed are recorded at estimated fair value and are subject to change pending finalization of all valuations.

"Our financial results for the fourth quarter of 2015 represent a strong finish to a great year.  The results include our successful completion of the Heritage acquisition and 24.58% annualized linked quarter legacy loan growth," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "Excluding merger expenses on an after-tax basis, our diluted EPS of $0.55 per share represents some of the highest reported quarterly earnings for the Company and was driven by the strong performance of our legacy company coupled with the successful conversion of Heritage's operations.  Furthermore, the continued sustainability of this profitability is reflected in our return on average assets, excluding merger expenses on an after-tax basis, of 1.12% for the quarter, marking the seventh consecutive quarter we've achieved greater than 1.00% return on average assets. As we look to 2016, we believe we are well positioned to continue to improve on profitability and earnings growth, which in turn will generate shareholder value."

The following table presents the Company's profitability metrics for the fourth quarter of 2015 including and excluding the impact of after-tax merger expenses from the Heritage acquisition:

As

Reported

Excluding

Merger

Expenses

Return on average assets

1.06%

1.12%

Return on average tangible assets

1.19%

1.25%

Return on average equity

8.06%

8.48%

Return on average tangible equity

15.84%

16.61%

The following table presents the Company's profitability metrics for the year ending December 31, 2015, including and excluding the impact of after-tax merger expenses from the Heritage acquisition:

As

Reported

Excluding

Merger

Expenses

Return on average assets

0.99%

1.10%

Return on average tangible assets

1.11%

1.23%

Return on average equity

7.72%

8.57%

Return on average tangible equity

14.50%

16.00%

Total assets at December 31, 2015, were approximately $7.94 billion, as compared to $5.81 billion at December 31, 2014.

Total loans, including loans acquired in the Heritage and First M&F Corporation ("First M&F") acquisitions or in FDIC-assisted transactions (collectively referred to as "acquired loans"), increased 35.75% to approximately $5.41 billion at December 31, 2015, as compared to $3.99 billion at December 31, 2014. Excluding acquired loans, loans grew 17.23% to $3.83 billion at December 31, 2015, as compared to $3.27 billion at December 31, 2014.

Total deposits were $6.22 billion at December 31, 2015, as compared to $4.84 billion at December 31, 2014. The increase in deposits is primarily attributable to the acquisition of Heritage.  The Company's noninterest-bearing deposits averaged approximately $1.32 billion, or 21.36% of average deposits, for the fourth quarter of 2015, as compared to $937 million, or 19.58% of average deposits, for the fourth quarter of 2014. The Company's cost of funds was 31 basis points for the fourth quarter of 2015, as compared to 45 basis points for the same quarter in 2014.

At December 31, 2015, the Company's Tier 1 leverage capital ratio was 9.18%, its Common Equity Tier 1 risk-based capital ratio was 9.98%, its Tier 1 risk-based capital ratio was 11.50%, and its total risk-based capital ratio was 12.30%. The Company's regulatory capital ratios continue to be in excess of the regulatory minimums required to be classified as "well-capitalized."  At December 31, 2015, our tangible common equity ratio was 7.56%.  

Net interest income was $72.4 million for the fourth quarter of 2015, as compared to $50.0 million for the fourth quarter of 2014. Net interest margin was 4.33% for the fourth quarter of 2015, as compared to 4.09% for the fourth quarter of 2014.  Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans increased net interest margin 21 basis points in the fourth quarter of 2015, as compared to 11 basis points in the same period in 2014.

Net interest income was $241.6 million for the year ended December 31, 2015, as compared to $202.6 million for the year ended December 31, 2014.  Net interest margin was 4.17% for 2015, as compared to 4.12% for the prior year.  Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans increased net interest margin 14 basis points for all of 2015, as compared to 17 basis points for the prior year.

The Company's noninterest income is derived from diverse lines of business which primarily consist of mortgage, wealth management and insurance revenue sources along with income from deposit and loan products. For the fourth quarter of 2015, noninterest income increased to $31.5 million, as compared to $20.0 million for the fourth quarter of 2014. Noninterest income increased to $108.4 million during 2015, as compared to $80.6 million during 2014.  The Company's growth in noninterest income for both the fourth quarter and full year of 2015, as compared to the comparable periods in the prior year, is primarily attributable to the Heritage acquisition and growth in our mortgage lending. 

Noninterest expense was $70.9 million for the fourth quarter of 2015, and $245.5 for the year 2015, as compared to $46.0 million for the fourth quarter of 2014, and $191.2 million for the year 2014. The increase in noninterest expense, when compared to the comparable periods in 2014, was primarily due to the operating expenses of the acquired Heritage operations as well as merger expenses incurred in connection with the Heritage acquisition. The Company recorded merger expenses of approximately $1.92 million and $499 thousand during the fourth quarter of 2015 and 2014, respectively.  The Company recorded merger expenses of approximately $11.6 million and $694 thousand during 2015 and 2014, respectively.

The Company recorded a provision for loan losses of $1.8 million for the fourth quarter of 2015, as compared to $1.1 million for the fourth quarter of 2014.  For the fourth quarter of 2015, net charge-offs were $1.4 million, as compared to $3.3 million in net charge-offs for the same period in 2014. Annualized net charge-offs as a percentage of average loans were 0.10% for the fourth quarter of 2015, as compared to 0.33% for the same quarter in 2014.

The allowance for loan losses as a percentage of total loans was 0.78% at December 31, 2015, as compared to 1.06% at December 31, 2014.  The allowance for loan losses as a percentage of non-acquired loans was 1.11% at December 31, 2015, as compared to 1.29% at December 31, 2014.   

At December 31, 2015, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $45.4 million, or 0.84% of total loans, and total other real estate owned ("OREO") was $35.4 million, as compared to total nonperforming loans of $55.1 million, or 1.38% of total loans, and total OREO of $34.5 million at December 31, 2014. The Company's nonperforming loans and OREO that were acquired through the Heritage and First M&F acquisitions or in connection with FDIC-assisted transactions (collectively referred to as "acquired nonperforming assets") were $30.0 million and $22.4 million, respectively, at December 31, 2015, as compared to $34.9 million and $17.4 million, respectively at December 31, 2014. 

Since the acquired nonperforming assets were recorded at fair value at the time of acquisition or are subject to loss-share agreements with the FDIC, which significantly mitigates our actual loss, the remaining information in this release on nonperforming loans, OREO and the related asset quality ratios excludes these acquired nonperforming assets.

Nonperforming assets decreased 23.85% to $28.4 million at December 31, 2015, as compared to $37.3 million at December 31, 2014.

Nonperforming loans were $15.4 million, or 0.40% of total non-acquired loans, at December 31, 2015, as compared to $20.2 million, or 0.62% of total non-acquired loans, at December 31, 2014, representing a 23.73% decrease. Early stage delinquencies, or loans 30-to-89 days past due, as a percentage of total loans were 0.20% at December 31, 2015, as compared to  0.32% at December 31, 2014.

OREO was $13.0 million at December 31, 2015, as compared to $17.1 million at December 31, 2014, a 23.99% decrease. The Company continues to proactively market the properties held in OREO as it sold approximately $5.87 million of OREO during 2015, with $1.10 million in sales occurring during the fourth quarter of 2015.

CONFERENCE CALL INFORMATION:

A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time on Wednesday, January 20, 2016.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst160120. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Fourth Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.

The webcast will be archived on www.renasant.com beginning one hour after the call and will remain accessible for one year.  Replays can also be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 10079062 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 3, 2016.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 111-year-old financial services institution. Renasant has assets of approximately $7.9 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 "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)

Q4 2015 -

For the Year Ending

2015

2014

Q4 2014

December 31, 

Fourth

Third

Second

First

Fourth

Third

Second

First

Percent

Percent

Statement of earnings

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2015

2014

Variance

Interest income - taxable equivalent basis

$            79,679

$          76,242

$          58,516

$          55,910

$          57,335

$          58,098

$            60,002

$          57,811

38.97

$        270,347

$         233,246

15.91

Interest income 

$            77,788

$          74,300

$          56,769

$          54,166

$          55,597

$          56,358

$            58,277

$          56,177

39.91

$        263,023

$         226,409

16.17

Interest expense

5,364

5,620

5,099

5,324

5,580

5,886

6,108

6,206

(3.87)

21,407

23,780

(9.98)

Net interest income

72,424

68,680

51,670

48,842

50,017

50,472

52,169

49,971

44.80

241,616

202,629

19.24

Provision for loan losses

1,750

750

1,175

1,075

1,050

2,217

1,450

1,450

66.67

4,750

6,167

(22.98)

Net interest income after provision

70,674

67,930

50,495

47,767

48,967

48,255

50,719

48,521

44.33

236,866

196,462

20.57

Service charges on deposit accounts

8,261

8,151

6,522

6,335

6,905

7,107

6,533

6,211

19.64

29,269

26,756

9.39

Fees and commissions on loans and deposits

6,118

5,704

4,954

4,492

4,771

5,877

5,175

4,677

28.23

21,268

20,500

3.75

Insurance commissions and fees

1,956

2,381

2,119

1,967

1,973

2,270

2,088

1,863

(0.86)

8,423

8,194

2.79

Wealth management revenue

2,658

2,871

2,248

2,190

2,144

2,197

2,170

2,144

23.97

9,967

8,655

15.16

Securities gains (losses) 

-

-

96

-

-

375

-

-

-

96

375

(74.40)

Gain on sale of mortgage loans

10,020

10,578

5,407

4,633

2,368

2,635

2,006

1,585

323.14

30,638

8,594

256.50

Gain on acquisition

-

-

-

-

-

-

-

-

-

-

-

-

Other

2,478

2,432

1,571

2,287

1,809

2,102

1,499

2,136

36.98

8,768

7,546

16.19

Total noninterest income

31,491

32,117

22,917

21,904

19,970

22,563

19,471

18,616

57.69

108,429

80,620

34.49

Salaries and employee benefits

43,409

43,048

30,394

28,260

27,301

29,569

29,810

28,428

59.00

145,111

115,108

26.07

Data processing

3,940

3,773

3,152

3,181

2,949

2,906

2,850

2,695

33.60

14,046

11,400

23.21

Occupancy and equipment

8,171

7,733

5,524

5,559

5,146

5,353

4,906

4,847

58.78

26,987

20,252

33.26

Other real estate

698

861

954

532

723

1,101

1,068

1,701

(3.46)

3,045

4,593

(33.70)

Amortization of intangibles

1,751

1,803

1,239

1,275

1,327

1,381

1,427

1,471

31.95

6,068

5,606

8.24

Merger-related expenses

1,923

7,746

1,467

478

499

-

-

195

285.37

11,614

694

1,573.49

Debt extinguishment penalty

-

-

-

-

-

-

-

-

-

-

-

-

Other

10,964

11,121

8,446

8,129

8,034

7,865

9,335

8,308

36.47

38,660

33,542

15.26

Total noninterest expense

70,856

76,085

51,176

47,414

45,979

48,175

49,396

47,645

54.11

245,531

191,195

28.42

Income before income taxes

31,309

23,962

22,236

22,257

22,958

22,643

20,794

19,492

36.38

99,764

85,887

16.16

Income taxes

10,149

7,742

6,842

7,017

7,361

7,108

5,941

5,895

37.88

31,750

26,305

20.70

Net income 

$            21,160

$          16,220

$          15,394

$          15,240

$          15,597

$          15,535

$            14,853

$          13,597

35.67

$          68,014

$           59,582

14.15

Basic earnings per share

$                0.53

$              0.40

$              0.49

$              0.48

$              0.49

$              0.49

$                0.47

$              0.43

8.16

$              1.89

$               1.89

-

Diluted earnings per share

0.52

0.40

0.48

0.48

0.49

0.49

0.47

0.43

6.12

1.88

1.88

-

Average basic shares outstanding

40,276,441

40,265,941

31,626,059

31,576,275

31,537,278

31,526,423

31,496,737

31,436,148

27.71

35,971,877

31,499,498

14.20

Average diluted shares outstanding

40,539,151

40,518,413

31,865,172

31,815,710

31,781,734

31,718,529

31,698,198

31,668,362

27.55

36,227,439

31,759,647

14.07

Common shares outstanding

40,293,291

40,268,455

31,644,706

31,604,937

31,545,145

31,533,703

31,519,641

31,480,395

27.73

40,293,291

31,545,145

27.73

Cash dividend per common share

$                0.17

$              0.17

$              0.17

$              0.17

$              0.17

$              0.17

$                0.17

$              0.17

-

$              0.68

$               0.68

-

Performance ratios

Return on average shareholders' equity

8.06%

6.28%

8.42%

8.59%

8.72%

8.84%

8.67%

8.19%

7.72%

8.61%

Return on average tangible shareholders' equity (1)

15.84%

12.20%

14.89%

15.45%

15.90%

16.50%

16.55%

16.05%

14.50%

16.25%

Return on average assets

1.06%

0.81%

1.06%

1.06%

1.08%

1.07%

1.02%

0.93%

0.99%

1.02%

Return on average tangible assets (2)

1.19%

0.93%

1.17%

1.18%

1.20%

1.20%

1.15%

1.05%

1.11%

1.15%

Net interest margin (FTE)

4.33%

4.09%

4.17%

4.03%

4.09%

4.12%

4.24%

4.04%

4.17%

4.12%

Yield on earning assets (FTE)

4.65%

4.42%

4.57%

4.45%

4.53%

4.58%

4.72%

4.53%

4.52%

4.59%

Cost of funding

0.31%

0.33%

0.40%

0.43%

0.45%

0.47%

0.48%

0.48%

0.36%

0.47%

Average earning assets to average assets

86.02%

86.57%

87.79%

87.49%

87.41%

87.32%

87.39%

87.35%

86.88%

87.37%

Average loans to average deposits

86.22%

83.63%

81.93%

81.44%

82.67%

82.26%

79.11%

77.00%

83.51%

80.24%

Noninterest income (less securities gains/

losses) to average assets

1.58%

1.61%

1.57%

1.53%

1.38%

1.53%

1.34%

1.27%

1.57%

1.38%

Noninterest expense (less debt prepayment penalties/

merger-related expenses) to average assets

3.46%

3.43%

3.41%

3.27%

3.14%

3.32%

3.39%

3.25%

3.40%

3.28%

Net overhead ratio

1.88%

1.82%

1.84%

1.74%

1.76%

1.79%

2.06%

1.97%

1.83%

1.90%

Efficiency ratio (FTE) (4)

63.50%

64.76%

63.58%

62.99%

61.56%

62.90%

65.38%

65.48%

63.77%

63.82%

 

 

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q4 2015 -

For the Year Ending

2015

2014

Q4 2014

December 31, 

Fourth

Third

Second

First

Fourth

Third

Second

First

Percent

Percent

Average balances

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2015

2014

Variance

Total assets

$       7,906,661

$     7,905,538

$     5,847,539

$     5,821,758

$     5,746,146

$     5,758,083

$       5,836,607

$     5,927,884

37.60

$     6,878,921

$      5,816,517

18.27

Earning assets

6,801,388

6,842,452

5,133,567

5,093,224

5,022,647

5,027,805

5,100,833

5,178,069

35.41

5,976,098

5,081,764

17.60

Securities

1,120,236

1,143,577

999,962

989,743

979,052

1,001,548

1,026,948

1,002,519

14.42

1,065,319

1,002,450

6.27

Mortgage loans held for sale

268,096

398,480

87,435

50,918

27,443

31,832

26,004

19,925

876.92

202,368

26,337

668.38

Loans, net of unearned

5,341,943

5,223,273

3,978,514

3,969,244

3,954,606

3,937,142

3,897,027

3,868,747

35.08

4,633,635

3,914,679

18.37

Intangibles

481,747

456,811

295,441

296,682

297,978

300,725

302,181

303,599

61.67

383,380

301,104

27.32

Noninterest-bearing deposits

$       1,323,468

$     1,272,714

$        969,770

$        932,011

$        936,672

$        896,856

$          905,180

$        949,317

41.29

$     1,125,970

$         921,903

22.14

Interest-bearing deposits

4,872,432

4,972,717

3,886,199

3,941,863

3,846,891

3,889,133

4,020,754

4,074,745

26.66

4,422,371

3,957,068

11.76

Total deposits

6,195,900

6,245,431

4,855,969

4,873,874

4,783,563

4,785,989

4,925,934

5,024,062

29.52

5,548,341

4,878,971

13.72

Borrowed funds

568,548

556,269

204,884

168,758

190,928

214,017

169,373

170,091

197.78

376,208

186,236

102.01

Shareholders' equity

1,041,460

1,023,912

733,158

719,687

709,780

697,103

686,794

673,046

46.73

880,831

691,802

27.32

Q4 2015 -

As of

2015

2014

Q4 2014

December 31,

Fourth

Third

Second

First

Fourth

Third

Second

First

Percent

Percent

Balances at period end

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2015

2014

Variance

Total assets

$       7,935,702

$     7,918,732

$     5,899,190

$     5,881,849

$     5,805,129

$     5,751,711

$       5,826,020

$     5,902,831

36.70

$     7,935,702

$      5,805,129

36.70

Earning assets

6,778,485

6,810,285

5,186,419

5,168,497

5,063,039

5,053,252

5,063,873

5,161,173

33.88

6,778,485

5,063,039

33.88

Securities

1,105,205

1,139,553

965,290

1,016,394

983,747

980,328

1,007,331

1,046,688

12.35

1,105,205

983,747

12.35

Mortgage loans held for sale

225,254

317,681

108,023

102,780

25,628

30,451

28,116

28,433

778.94

225,254

25,628

778.94

Loans not acquired

3,830,434

3,607,005

3,407,925

3,274,314

3,267,486

3,165,492

3,096,286

2,947,836

17.23

3,830,434

3,267,486

17.23

Loans acquired and covered by FDIC loss-share agreements

93,142

100,839

121,626

125,773

143,041

155,319

167,129

173,545

(34.88)

93,142

143,041

(34.88)

Loans acquired and not covered by FDIC loss-share agreements

1,489,886

1,570,116

507,653

553,574

577,347

636,628

694,115

746,047

158.06

1,489,886

577,347

158.06

Total loans

5,413,462

5,277,960

4,037,204

3,953,661

3,987,874

3,957,439

3,957,530

3,867,428

35.75

5,413,462

3,987,874

35.75

Intangibles

480,813

482,599

294,808

296,053

297,330

298,609

301,478

302,903

61.71

480,813

297,330

61.71

Noninterest-bearing deposits

$       1,278,337

$     1,303,884

$        972,672

$        959,351

$        919,872

$        935,544

$          902,766

$        914,964

38.97

$     1,278,337

$         919,872

38.97

Interest-bearing deposits

4,940,265

4,930,677

3,917,772

3,983,418

3,918,546

3,828,126

3,983,965

4,089,820

26.07

4,940,265

3,918,546

26.07

Total deposits

6,218,602

6,234,561

4,890,444

4,942,769

4,838,418

4,763,670

4,886,731

5,004,784

28.53

6,218,602

4,838,418

28.53

Borrowed funds

570,496

551,740

219,089

162,313

188,825

227,664

189,830

168,700

202.13

570,496

188,825

202.13

Shareholders' equity

1,044,587

1,032,699

730,976

723,196

711,651

700,475

688,215

676,715

46.78

1,044,587

711,651

46.78

Market value per common share

$              34.41

$            32.85

$            32.60

$            30.05

$            28.93

$            27.05

$              29.07

$            29.05

18.94

$            34.41

$             28.93

18.94

Book value per common share

25.92

25.65

23.10

22.88

22.56

22.21

21.83

21.50

14.89

25.92

22.56

14.89

Tangible book value per common share

13.99

13.66

13.78

13.52

13.13

12.74

12.27

11.87

6.55

13.99

13.13

6.55

Shareholders' equity to assets (actual)

13.16%

13.04%

12.39%

12.30%

12.26%

12.18%

11.81%

11.46%

13.16%

12.26%

Tangible capital ratio (3)

7.56%

7.40%

7.78%

7.65%

7.52%

7.37%

7.00%

6.68%

7.56%

7.52%

Leverage ratio

9.18%

8.95%

9.89%

9.74%

9.53%

9.31%

8.91%

8.56%

9.18%

9.53%

Common equity tier 1 capital ratio

9.98%

9.92%

10.45%

10.35%

N/A

N/A

N/A

N/A

9.98%

N/A

Tier 1 risk-based capital ratio

11.50%

11.46%

12.52%

12.47%

12.45%

12.28%

11.82%

11.54%

11.50%

12.45%

Total risk-based capital ratio

12.30%

12.27%

13.55%

13.51%

13.54%

13.43%

12.96%

12.70%

12.30%

13.54%

 

 

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

Q4 2015 -

As of

2015

2014

Q4 2014

December 31, 

Fourth

Third

Second

First

Fourth

Third

Second

First

Percent

Percent

Loans not acquired by category

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2015

2014

Variance

Commercial, financial, agricultural

$          485,407

$        450,688

$        437,181

$        418,752

$        418,501

$        378,802

$          365,262

$        347,828

15.99

$        485,407

$         418,501

15.99

Lease financing

34,815

24,698

17,633

11,560

10,114

5,377

1,767

612

244.23

34,815

10,114

244.23

Real estate - construction

291,701

268,805

212,071

200,966

210,837

193,787

172,319

149,449

38.35

291,701

210,837

38.35

Real estate - 1-4 family mortgages

1,204,228

1,128,556

1,073,816

1,025,264

1,014,412

984,778

966,546

941,260

18.71

1,204,228

1,014,412

18.71

Real estate - commercial mortgages

1,729,049

1,653,534

1,589,969

1,542,706

1,538,950

1,527,680

1,516,372

1,441,404

12.35

1,729,049

1,538,950

12.35

Installment loans to individuals

85,234

80,724

77,255

75,066

74,672

75,068

74,020

67,283

14.14

85,234

74,672

14.14

Loans, net of unearned

$       3,830,434

$     3,607,005

$     3,407,925

$     3,274,314

$     3,267,486

$     3,165,492

$       3,096,286

$     2,947,836

17.23

$     3,830,434

$      3,267,486

17.23

Loans acquired and covered by FDIC loss-share agreements

Commercial, financial, agricultural

$              2,406

$            2,467

$            3,726

$            3,917

$            6,684

$            7,699

$              7,677

$            8,283

(64.00)

$            2,406

$             6,684

(64.00)

Lease financing

-

-

-

-

-

-

-

-

-

-

-

-

Real estate - construction

130

137

-

-

-

1,648

1,648

1,648

-

130

-

-

Real estate - 1-4 family mortgages

45,988

48,779

40,333

42,758

44,017

46,354

49,616

52,252

4.48

45,988

44,017

4.48

Real estate - commercial mortgages

44,550

49,382

77,536

79,064

92,304

99,579

108,166

111,337

(51.74)

44,550

92,304

(51.74)

Installment loans to individuals

68

74

31

34

36

39

22

25

88.89

68

36

88.89

Loans, net of unearned

$            93,142

$        100,839

$        121,626

$        125,773

$        143,041

$        155,319

$          167,129

$        173,545

(34.88)

$          93,142

$         143,041

(34.88)

Loans acquired and not covered by FDIC loss-share agreements

Commercial, financial, agricultural

$          149,024

$        167,966

$          39,652

$          52,119

$          58,098

$          64,058

$            74,887

$          84,005

156.50

$        149,024

$           58,098

156.50

Lease financing

-

-

-

-

-

-

-

-

-

-

-

-

Real estate - construction

65,833

70,428

505

483

1,224

1,631

2,610

4,803

5,278.51

65,833

1,224

5,278.51

Real estate - 1-4 family mortgages

485,107

485,170

161,765

171,433

177,931

190,447

205,126

217,748

172.64

485,107

177,931

172.64

Real estate - commercial mortgages

760,131

813,973

295,484

317,224

325,660

363,793

390,781

415,417

133.41

760,131

325,660

133.41

Installment loans to individuals

29,791

32,579

10,247

12,315

14,434

16,699

20,711

24,074

106.39

29,791

14,434

106.39

Loans, net of unearned

$       1,489,886

$     1,570,116

$        507,653

$        553,574

$        577,347

$        636,628

$          694,115

$        746,047

158.06

$     1,489,886

$         577,347

158.06

Asset quality data

Assets not acquired:

Nonaccrual loans

$            13,645

$          14,522

$          15,514

$          17,719

$          18,781

$          19,070

$            17,175

$          18,365

(27.35)

$          13,645

$           18,781

(27.35)

Loans 90 past due or more

1,751

647

5,647

1,193

1,406

7,177

3,615

1,322

24.54

1,751

1,406

24.54

Nonperforming loans

15,396

15,169

21,161

18,912

20,187

26,247

20,790

19,687

(23.73)

15,396

20,187

(23.73)

Other real estate owned

12,987

13,936

14,967

16,735

17,087

20,461

23,950

25,117

(23.99)

12,987

17,087

(23.99)

Nonperforming assets not acquired

$            28,383

$          29,105

$          36,128

$          35,647

$          37,274

$          46,708

$            44,740

$          44,804

(23.85)

$          28,383

$           37,274

(23.85)

Assets acquired and subject to loss share:

Nonaccrual loans

$              3,319

$            3,270

$          19,487

$          18,040

$          24,172

$          33,216

$            41,425

#

$          46,078

(86.27)

$            3,319

$           24,172

(86.27)

Loans 90 past due or more

3,609

4,143

-

-

48

1,979

-

#

32

7,418.75

3,609

48

7,418.75

Nonperforming loans subject to loss share

6,928

7,413

19,487

18,040

24,220

35,195

41,425

#

46,110

(71.40)

6,928

24,220

(71.40)

Other real estate owned

2,818

3,183

3,853

4,325

6,368

4,033

7,472

#

10,218

(55.75)

2,818

6,368

(55.75)

Nonperforming assets acquired and subject to loss share

$              9,746

$          10,596

$          23,340

$          22,365

$          30,588

$          39,228

$            48,897

#

$          56,328

(68.14)

$            9,746

$           30,588

(68.14)

Assets acquired and not subject to loss share:

Nonaccrual loans

$            12,070

$          15,796

$            1,085

$            1,627

$            1,443

$            1,991

$              5,966

#

$            6,393

736.45

$          12,070

$             1,443

736.45

Loans 90 past due or more

11,033

8,824

2,523

9,636

9,259

8,375

5,057

#

1,922

19.16

11,033

9,259

19.16

Nonperforming loans

23,103

24,620

3,608

11,263

10,702

10,366

11,023

#

8,315

115.88

23,103

10,702

115.88

Other real estate owned

19,597

19,215

8,244

10,626

11,017

9,565

10,381

#

12,406

77.88

19,597

11,017

77.88

Nonperforming assets acquired

$            42,700

$          43,835

$          11,852

$          21,889

$          21,719

$          19,931

$            21,404

#

$          20,721

96.60

$          42,700

$           21,719

96.60

Net loan charge-offs (recoveries)

$              1,364

$               588

$            1,588

$            1,062

$            3,330

$            4,952

$              2,194

$            1,067

(59.04)

$            4,602

$           11,543

(60.13)

Allowance for loan losses

42,437

42,051

41,888

42,302

42,289

44,569

47,304

48,048

0.35

42,437

$           42,289

0.35

Annualized net loan charge-offs / average loans

0.10%

0.04%

0.16%

0.11%

0.33%

0.50%

0.23%

0.11%

0.10%

0.29%

Nonperforming loans / total loans* 

0.84%

0.89%

1.10%

1.22%

1.38%

1.81%

1.85%

1.92%

0.84%

1.38%

Nonperforming assets / total assets*

1.02%

1.05%

1.21%

1.36%

1.54%

1.84%

1.97%

2.06%

1.02%

1.54%

Allowance for loan losses / total loans*

0.78%

0.80%

1.04%

1.07%

1.06%

1.13%

1.20%

1.24%

0.78%

1.06%

Allowance for loan losses / nonperforming loans*

93.42%

89.09%

94.65%

87.74%

76.74%

62.07%

64.59%

64.83%

93.42%

76.74%

Nonperforming loans / total loans** 

0.40%

0.42%

0.62%

0.58%

0.62%

0.83%

0.67%

0.67%

0.40%

0.62%

Nonperforming assets / total assets**

0.36%

0.37%

0.61%

0.61%

0.64%

0.81%

0.77%

0.76%

0.36%

0.64%

Allowance for loan losses / total loans**

1.11%

1.17%

1.23%

1.29%

1.29%

1.41%

1.53%

1.63%

1.11%

1.29%

Allowance for loan losses / nonperforming loans**

275.64%

277.22%

197.95%

223.68%

209.49%

169.81%

227.53%

244.06%

275.64%

209.49%

*Based on all assets (including acquired assets)

**Excludes all assets acquired

 

 

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

RECONCILIATION OF GAAP TO NON-GAAP

For the Year Ending

2015

2014

December 31, 

Fourth

Third

Second

First

Fourth

Third

Second

First

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

2015

2014

Net income (GAAP)

$            21,160

$          16,220

$          15,394

$          15,240

$          15,597

$          15,535

$            14,853

$          13,597

$          68,014

$           59,582

Amortization of intangibles, net of tax

1,183

1,220

858

873

902

947

1,019

1,026

4,137

3,889

Tangible net income (non-GAAP)

$            22,343

$          17,440

$          16,252

$          16,113

$          16,499

$          16,482

$            15,872

$          14,623

$          72,151

$           63,471

Average shareholders' equity (GAAP)

$       1,041,460

$     1,023,912

$        733,158

$        719,687

$        709,780

$        697,103

$          686,794

$        673,046

$        880,831

$         691,802

Intangibles

481,747

456,811

295,441

296,682

297,978

300,725

302,181

303,599

383,380

301,104

Average tangible shareholders' equity (non-GAAP)

$          559,713

$        567,101

$        437,717

$        423,005

$        411,802

$        396,378

$          384,613

$        369,447

$        497,451

$         390,698

Average total assets (GAAP)

$       7,906,661

$     7,905,538

$     5,847,539

$     5,821,758

$     5,746,146

$     5,758,083

$       5,836,607

$     5,927,884

$     6,878,921

$      5,816,517

Intangibles

481,747

456,811

295,441

296,682

297,978

300,725

302,181

303,599

383,380

301,104

Average tangible assets (non-GAAP)

$       7,424,914

$     7,448,727

$     5,552,098

$     5,525,076

$     5,448,168

$     5,457,358

$       5,534,426

$     5,624,285

$     6,495,541

$      5,515,413

Actual shareholders' equity (GAAP)

$       1,044,587

$     1,032,699

$        730,976

$        723,196

$        711,651

$        700,475

$          688,215

$        676,715

$     1,044,587

$         711,651

Intangibles

480,813

482,599

294,808

296,053

297,330

298,609

301,478

302,903

480,813

297,329

Actual tangible shareholders' equity (non-GAAP)

$          563,774

$        550,100

$        436,168

$        427,143

$        414,321

$        401,866

$          386,737

$        373,812

$        563,774

$         414,322

Actual total assets (GAAP)

$       7,935,702

$     7,918,732

$     5,899,190

$     5,881,849

$     5,805,129

$     5,751,711

$       5,826,020

$     5,902,831

$     7,935,702

$      5,805,129

Intangibles

480,813

482,599

294,808

296,053

297,330

298,609

301,478

302,903

480,813

297,329

Actual tangible assets (non-GAAP)

$       7,454,889

$     7,436,133

$     5,604,382

$     5,585,796

$     5,507,799

$     5,453,102

$       5,524,542

$     5,599,928

$     7,454,889

$      5,507,800

(1) Return on Average Equity

Return on (average) shareholders' equity (GAAP)

8.06%

6.28%

8.42%

8.59%

8.72%

8.84%

8.67%

8.19%

7.72%

8.61%

Effect of adjustment for intangible assets

7.78%

5.92%

6.47%

6.86%

7.18%

7.66%

7.88%

7.86%

6.78%

7.63%

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

15.84%

12.20%

14.89%

15.45%

15.90%

16.50%

16.55%

16.05%

14.50%

16.25%

(2) Return on Average Assets

Return on (average) assets (GAAP)

1.06%

0.81%

1.06%

1.06%

1.08%

1.07%

1.02%

0.93%

0.99%

1.02%

Effect of adjustment for intangible assets

0.13%

0.11%

0.12%

0.12%

0.12%

0.13%

0.13%

0.12%

0.12%

0.13%

Return on average tangible assets (non-GAAP)

1.19%

0.93%

1.17%

1.18%

1.20%

1.20%

1.15%

1.05%

1.11%

1.15%

(3) Shareholder Equity Ratio 

Shareholders' equity to (actual) assets (GAAP)

13.16%

13.04%

12.39%

12.30%

12.26%

12.18%

11.81%

11.46%

13.16%

12.26%

Effect of adjustment for intangible assets

5.60%

5.64%

4.61%

4.65%

4.74%

4.81%

4.81%

4.79%

5.60%

4.74%

Tangible capital ratio (non-GAAP)

7.56%

7.40%

7.78%

7.65%

7.52%

7.37%

7.00%

6.68%

7.56%

7.52%

CALCULATION OF EFFICIENCY RATIO

Interest income (FTE)

$            79,679

$          76,242

$          58,516

$          55,910

$          57,335

$          58,098

$            60,002

$          57,811

$        270,347

$         233,246

Interest expense

5,364

5,620

5,099

5,324

5,580

5,886

6,108

6,206

21,407

23,780

Net Interest income (FTE)

$            74,315

$          70,622

$          53,417

$          50,586

$          51,755

$          52,212

$            53,894

$          51,605

$        248,940

$         209,466

Total noninterest income 

$            31,491

$          32,117

$          22,917

$          21,904

$          19,970

$          22,563

$            19,471

$          18,616

$        108,429

$           80,620

Securities gains (losses) 

-

-

96

-

-

375

-

-

96

375

Gain on acquisition

-

-

-

-

-

-

-

-

-

-

Total noninterest income 

$            31,491

$          32,117

$          22,821

$          21,904

$          19,970

$          22,188

$            19,471

$          18,616

$        108,333

$           80,245

Total Income (FTE)

$          105,806

$        102,739

$          76,238

$          72,490

$          71,725

$          74,400

$            73,365

$          70,221

$        357,273

$         289,711

Total noninterest expense

$            70,856

$          76,085

$          51,176

$          47,414

$          45,979

$          48,175

$            49,396

$          47,645

$        245,531

$         191,195

Amortization of intangibles

1,751

1,803

1,239

1,275

1,327

1,381

1,427

1,471

6,068

5,606

Merger-related expenses

1,923

7,746

1,467

478

499

-

-

195

11,614

694

Debt extinguishment penalty

-

-

-

-

-

-

-

-

-

-

Total noninterest expense 

$            67,182

$          66,536

$          48,470

$          45,661

$          44,153

$          46,794

#

$            47,969

$          45,979

$        227,849

$         184,895

(4) Efficiency Ratio

63.50%

64.76%

63.58%

62.99%

61.56%

62.90%

65.38%

65.48%

63.77%

63.82%

Contact:

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

 

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SOURCE Renasant Corporation



RELATED LINKS

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