Le Lézard
Classified in: Business
Subjects: ERN, CCA

Renasant Corporation Announces Record Earnings For The Second Quarter Of 2018


TUPELO, Miss., July 17, 2018 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced earnings results for the second quarter of 2018. Net income for the second quarter of 2018 was $36.7 million, as compared to $25.3 million for the second quarter of 2017. Basic and diluted earnings per share ("EPS") were $0.74 for the second quarter of 2018, as compared to basic and diluted EPS of $0.57 for the second quarter of 2017.

Renasant Corporation logo. (PRNewsFoto/Renasant Corporation) (PRNewsFoto/) (PRNewsfoto/Renasant Corporation)

Net income for the six months ending June 30, 2018, was $70.5 million, an increase of 43.20%, as compared to $49.3 million for the same time period in 2017. Basic and diluted EPS were $1.43 and $1.42, respectively, for the first six months of 2018, as compared to basic and diluted EPS of $1.11 for the same time period in 2017.

As announced on March 28, 2018, the Company and Brand Group Holdings, Inc. ("Brand"), the parent company of The Brand Banking Company, entered into a definitive merger agreement pursuant to which the Company will acquire Brand for a combination of cash and Renasant common stock. Brand operates 13 locations throughout the greater Atlanta market. As of March 31, 2018, Brand had approximately $2.4 billion in total assets, which included approximately $1.9 billion in total loans (excluding mortgage loans held for sale), and approximately $1.9 billion in total deposits. The Company has submitted all required regulatory applications and is currently waiting on approval of the transaction.

Impact of Certain Expenses and Charges

The Company incurred expenses and charges in connection with certain transactions with respect to which management is unable to accurately predict the timing of when these expenses or charges will be incurred or, when incurred, the amount of such expenses or charges. The following table presents the impact of these expenses and charges on reported earnings per share for the dates presented (in thousands):

Three months ended
June 30, 2018

Three months ended
June 30, 2017

Pre-tax

After-tax

Impact to
Diluted
EPS

Pre-tax

After-tax

Impact to
Diluted
EPS

Merger and conversion expenses

$

500

$

389

$

0.01

$

3,044

$

2,065

$

0.04





























































Six months ended
June 30, 2018

Six months ended
June 30, 2017

Pre-tax

After-tax

Impact to
Diluted
EPS

Pre-tax

After-tax

Impact to
Diluted
EPS

Merger and conversion expenses

$

1,400

$

1,090

$

0.02

$

3,389

$

2,302

$

0.05

Debt prepayment penalty

?

?

?

205

139

?

 

"We are pleased with our results for the second quarter of 2018 as we once again achieved record earnings," said Renasant Executive Chairman, E. Robinson McGraw. "In addition, our strong profitability metrics continued to improve as our returns on average tangible assets and average tangible equity, excluding merger and conversion expenses, were 1.59% and 16.92%, respectively."

"Looking ahead, we anticipate a strong second half of 2018. We will continue to look for opportunities for profitable balance sheet growth, whether organic or through the result of  external opportunities, and we will continue to focus on expense management which will further improve our efficiency ratio," said C. Mitchell Waycaster, Renasant President and CEO. "We expect our merger with BrandBank to be completed during the third quarter of 2018, and we look forward to a smooth integration of our companies."

Profitability Metrics

The following table presents the Company's profitability metrics for the three and six months ending June 30, 2018, including and excluding the impact of after-tax merger and conversion expenses described above.

Three Months Ended

Six Months Ended

June 30, 2018

June 30, 2018

As Reported

Excluding merger
and conversion
expenses

As Reported

Excluding merger
and conversion
expenses

Return on average assets

1.43

%

1.44

%

1.40

%

1.42

%

Return on average tangible assets

1.57

%

1.59

%

1.54

%

1.57

%

Return on average equity

9.55

%

9.65

%

9.28

%

9.42

%

Return on average tangible equity

16.75

%

16.92

%

16.39

%

16.63

%

 

Return on average tangible assets and return on average tangible equity, as well as our tangible capital ratio (discussed under "Capital Ratios" below), are non-GAAP financial measures. A reconciliation of these financial measures from GAAP to non-GAAP is included in the table at the end of this release.

Other financial highlights from the second quarter of 2018 include the following:

Three Months Ended

June 30,

March 31,

June 30,

2018

2018

2017

Taxable equivalent interest income on loans

$

97,045

$

93,373

$

78,857




Average loans

$

7,704,221

$

7,646,991

$

6,293,497




Loan yield

5.05

%

4.95

%

5.03

%

 

The impact from interest income collected on problem loans and purchase accounting adjustments on loans to total interest income on loans and yield is shown in the following table for the periods presented (in thousands).

Three Months Ended

June 30,

March 31,

June 30,

2018

2018

2017

Net interest income collected on problem loans

$

1,045

$

358

$

2,745

Accretable yield recognized on purchased loans(1)

5,719

6,118

5,410

Total impact to interest income on loans

$

6,764

$

6,476

$

8,155




Impact to loan yield

0.35

%

0.34

%

0.52

%





(1) Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $3,316, $3,358 and $2,684 for the three months ended June 30, 2018, March 31, 2018, and June 30, 2017, respectively, which increased loan yield by 17 basis points, 18 basis points and 17 basis points for the same periods, respectively.

 

The following table presents reported taxable equivalent loan yield for the periods presented (in thousands).

Six Months Ended

June 30,

June 30,

2018

2017

Taxable equivalent interest income on loans

$

190,418

$

152,567




Average loans

$

7,675,764

$

6,246,363




Loan yield

5.00

%

4.93

%

 

The impact from interest income collected on problem loans and purchase accounting adjustments on loans to total interest income on loans and yield is shown in the following table for the periods presented (in thousands).

Six Months Ended

June 30,

June 30,

2018

2017

Net interest income collected on problem loans

$

1,403

$

3,302

Accretable yield recognized on purchased loans(1)

11,837

11,014

Total impact to interest income on loans

$

13,240

$

14,316




Impact to loan yield

0.35

%

0.46

%




(1) Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $6,674 and $5,416 for the six months ended June 30, 2018 and June 30, 2017, respectively, which increased loan yield by 18 basis points and 17 basis points for the same periods, respectively.

 

Percentage of Total Average Deposits and Borrowed Funds

Cost of Funds

Three Months Ending

Three Months Ending

June 30,

March 31,

June 30,

June 30,

March 31,

June 30,

2018

2018

2017

2018

2018

2017

Noninterest-bearing demand

21.48

%

21.52

%

21.79

%

?

%

?

%

?

%

Interest-bearing demand

46.63

46.31

45.63

0.54

0.35

0.23

Savings

6.82

6.88

7.70

0.15

0.11

0.07

Time deposits

21.54

21.56

21.72

1.12

1.00

0.83

Borrowed funds

3.53

3.73

3.16

4.27

3.98

4.57

Total deposits and borrowed funds

100.00

%

100.00

%

100.00

%

0.65

%

0.53

%

0.43

%

 

Percentage of Total Average
Deposits and Borrowed Funds

Cost of Funds

Six Months Ending

Six Months Ending

June 30,

June 30,

June 30,

June 30,

2018

2017

2018

2017

Noninterest-bearing demand

21.50

%

21.39

%

?

%

?

%

Interest-bearing demand

46.48

45.79

0.45

0.22

Savings

6.85

7.58

0.13

0.07

Time deposits

21.55

21.76

1.06

0.82

Borrowed funds

3.62

3.48

4.12

4.22

Total deposits and borrowed funds

100.00

%

100.00

%

0.60

%

0.43

%

 

Three Months Ended

June 30,

March 31,

June 30,

2018

2018

2017

Taxable equivalent net interest income

$

93,806

$

90,807

$

81,453




Average earning assets

$

9,044,528

$

8,760,679

$

7,657,849




Net interest margin

4.16

%

4.20

%

4.27

%

 

The impact from interest income collected on problem loans and purchase accounting adjustments on net interest income and net interest margin is shown in the following table for the periods presented (in thousands).

Three Months Ended

June 30,

March 31,

June 30,

2018

2018

2017

Net interest income collected on problem loans

$

1,045

$

358

$

2,745

Accretable yield recognized on purchased loans(1)

5,719

6,118

5,410

Total impact to net interest income

$

6,764

$

6,476

$

8,155




Impact to net interest margin

0.30

%

0.30

%

0.43

%





(1) Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $3,316, $3,358 and $2,684 for the three months ended June 30, 2018, March 31, 2018, and June 30, 2017, respectively, which increased net interest margin by 15 basis points, 16 basis points and 14 basis points for the same periods, respectively.

 

Six Months Ended

June 30,

June 30,

2018

2017

Taxable equivalent net interest income

$

184,613

$

157,360




Average earning assets

$

8,903,388

$

7,663,186




Net interest margin

4.18

%

4.14

%

 

The impact from interest income collected on problem loans and purchase accounting adjustments on net interest income and net interest margin is shown in the following table for the periods presented (in thousands).

Six Months Ended

June 30,

June 30,

2018

2017

Net interest income collected on problem loans

$

1,403

$

3,302

Accretable yield recognized on purchased loans(1)

11,837

11,014

Total impact to net interest income

$

13,240

$

14,316




Impact to net interest margin

0.30

%

0.38

%




(1) Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $6,674 and $5,416 for the six months ended June 30, 2018 and June 30, 2017, respectively, which increased net interest margin by 15 basis points and 14 basis points for the same periods, respectively.

 

Asset Quality Metrics

Total nonperforming assets were $34.9 million at June 30, 2018, a decrease of $4.5 million from December 31, 2017, and consisted of $21.2 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $13.7 million in other real estate owned ("OREO").

The Company's nonperforming loans and OREO that were purchased in previous acquisitions (collectively referred to as "purchased nonperforming assets") were $10.1 million and $9.0 million, respectively, at June 30, 2018, as compared to $10.2 million and $11.5 million, respectively, at December 31, 2017. The purchased nonperforming assets were recorded at fair value at the time of acquisition, which significantly mitigates the Company's actual loss. As such, the remaining information in this release on nonperforming loans, OREO and the related asset quality ratios focuses on non-purchased nonperforming assets.

Capital Ratios

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 18, 2018.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or https://services.choruscall.com/links/rnst180718.html.  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 10122193 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 1, 2018.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 114-year-old financial services institution. Renasant has assets of approximately $10.5 billion and operates more than 180 banking, mortgage, wealth management and insurance offices in Mississippi, Tennessee, Alabama, Florida and Georgia.

NOTE TO INVESTORS:

This press 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," "approximately," "should" and variations of such words 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. Actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include significant fluctuations in interest rates, inflation, economic recession, significant changes in the federal and state legal and regulatory environment, significant underperformance in the Company's portfolio of outstanding loans, and competition in the Company's markets. Management believes that the assumptions underlying the Company's forward-looking statements are reasonable, but any of the assumptions could prove to be inaccurate. Investors are urged to carefully consider the risks described in the Company's filings with the Securities and Exchange Commission (the "SEC") from time to time, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.renasant.com and the SEC's website at www.sec.gov.  The Company expressly disclaims any 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 non-GAAP financial measures, namely, return on average tangible shareholders' equity, return on average tangible assets, the ratio of tangible equity to tangible assets (commonly referred to as the "tangible capital ratio") and the efficiency ratio. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and certain charges that the Company considers to be non-recurring in nature. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indications of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets, such as goodwill and the core deposit intangible, and non-recurring charges can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution's regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company's results to information provided in other regulatory reports and the results of other companies. Reconciliations of these other 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."

None of the non-GAAP financial information that the Company has included in this release is 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 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.

 

RENASANT CORPORATION





















(Unaudited)





















(Dollars in thousands, except per share data)






































Q2 2018 -

For The Six Months Ending


2018

2017

Q2 2017

June 30,



Second

First

Fourth

Third

Second

First

Percent




Percent

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2018

2017

Variance

Statement of earnings



















Interest income - taxable equivalent basis

$

107,991

$

101,947

$

107,773

$

102,613

$

89,429

$

83,781

20.76

$

209,938

$

173,210

21.20

Interest income

$

106,574

$

100,380

$

104,587

$

100,695

$

87,579

$

81,889

21.69

$

206,954

$

169,468

22.12

Interest expense

14,185

11,140

11,325

10,678

7,976

7,874

77.85

25,325

15,850

59.78

Net interest income

92,389

89,240

93,262

90,017

79,603

74,015

16.06

181,629

153,618

18.23

Provision for loan losses

1,810

1,750

2,150

2,150

1,750

1,500

3.43

3,560

3,250

9.54

Net interest income after provision

90,579

87,490

91,112

87,867

77,853

72,515

16.35

178,069

150,368

18.42

Service charges on deposit accounts

8,271

8,473

8,659

8,676

7,958

7,931

3.93

16,744

15,889

5.38

Fees and commissions on loans and deposits

5,917

5,685

5,647

5,618

5,470

5,199

8.17

11,602

10,669

8.74

Insurance commissions and fees

2,110

2,005

1,955

2,365

2,181

1,860

(3.26)

4,115

4,041

1.83

Wealth management revenue

3,446

3,262

3,000

2,963

3,037

2,884

13.47

6,708

5,921

13.29

Securities gains (losses)

?

?

91

57

?

?

?

?

?

?

Mortgage banking income

12,839

10,960

9,871

10,616

12,424

10,504

3.34

23,799

22,928

3.80

Other

2,998

3,568

3,218

3,118

3,195

3,643

(6.17)

6,566

6,838

(3.98)

Total noninterest income

35,581

33,953

32,441

33,413

34,265

32,021

3.84

69,534

66,286

4.90

Salaries and employee benefits

52,010

48,784

48,787

48,530

45,014

42,209

15.54

100,794

87,223

15.56

Data processing

4,600

4,244

4,226

4,179

3,835

4,234

19.95

8,844

8,069

9.60

Occupancy and equipment

9,805

9,822

10,153

9,470

8,814

9,319

11.24

19,627

18,133

8.24

Other real estate

232

657

554

603

781

532

(70.29)

889

1,313

(32.29)

Amortization of intangibles

1,594

1,651

1,708

1,766

1,493

1,563

6.76

3,245

3,056

6.18

Merger and conversion related expenses

500

900

723

6,266

3,044

345

(83.57)

1,400

3,389

(58.69)

Debt extinguishment penalty

?

?

?

?

?

205

?

?

205

(100.00)

Other

10,285

11,886

10,657

9,846

11,860

10,902

(13.28)

22,171

22,762

(2.60)

Total noninterest expense

79,026

77,944

76,808

80,660

74,841

69,309

5.59

156,970

144,150

8.89

Income before income taxes

47,134

43,499

46,745

40,620

37,277

35,227

26.44

90,633

72,504

25.00

Income taxes

10,424

9,673

30,234

14,199

11,993

11,255

(13.08)

20,097

23,248

(13.55)

Net income

$

36,710

$

33,826

$

16,511

$

26,421

$

25,284

$

23,972

45.19

$

70,536

$

49,256

43.20

Basic earnings per share

$

0.74

$

0.69

$

0.33

$

0.54

$

0.57

$

0.54

29.82

$

1.43

$

1.11

28.83

Diluted earnings per share

0.74

0.68

0.33

0.53

0.57

0.54

29.82

1.42

1.11

27.93

Average basic shares outstanding

49,413,754

49,356,417

49,320,377

49,316,572

44,415,423

44,364,337

11.25

49,385,244

44,390,021

11.25

Average diluted shares outstanding

49,549,761

49,502,950

49,456,289

49,435,225

44,523,541

44,480,499

11.29

49,522,045

44,500,280

11.28

Common shares outstanding

49,424,339

49,392,978

49,321,231

49,320,225

44,430,335

44,394,707

11.24

49,424,339

44,430,335

11.24

Cash dividend per common share

$

0.20

$

0.19

$

0.19

$

0.18

$

0.18

$

0.18

11.11

$

0.39

$

0.36

8.33

Performance ratios



















Return on avg shareholders' equity

9.55

%

9.00

%

4.31

%

7.01

%

8.06

%

7.80

%


9.28

%

7.93

%

Return on avg tangible s/h's equity (1)

16.75

%

16.02

%

7.94

%

12.74

%

13.76

%

13.48

%


16.39

%

13.62

%

Return on avg assets

1.43

%

1.36

%

0.64

%

1.02

%

1.16

%

1.11

%


1.40

%

1.14

%

Return on avg tangible assets (2)

1.57

%

1.51

%

0.73

%

1.13

%

1.28

%

1.23

%


1.54

%

1.26

%

Net interest margin (FTE)

4.16

%

4.20

%

4.25

%

4.08

%

4.27

%

4.01

%


4.18

%

4.14

%

Yield on earning assets (FTE)

4.79

%

4.72

%

4.75

%

4.55

%

4.68

%

4.43

%


4.75

%

4.56

%

Cost of funding

0.65

%

0.53

%

0.52

%

0.49

%

0.43

%

0.43

%


0.60

%

0.43

%

Average earning assets to average assets

87.65

%

87.12

%

86.92

%

87.03

%

87.81

%

87.55

%


87.39

%

87.68

%

Average loans to average deposits

91.84

%

94.04

%

93.51

%

90.96

%

88.03

%

86.81

%


92.91

%

87.42

%

Noninterest income (less securities gains/




















losses) to average assets

1.38

%

1.37

%

1.25

%

1.29

%

1.58

%

1.48

%


1.38

%

1.53

%

Noninterest expense (less debt prepayment penalties/




















penalties/merger-related expenses) to




















average assets

3.05

%

3.11

%

2.94

%

2.87

%

3.30

%

3.18

%


3.08

%

3.24

%

Net overhead ratio

1.67

%

1.74

%

1.69

%

1.58

%

1.72

%

1.70

%


1.70

%

1.71

%

Efficiency ratio (FTE) (4)

59.46

%

60.43

%

57.75

%

57.97

%

60.75

%

62.26

%


59.94

%

61.48

%

 

 

RENASANT CORPORATION



















(Unaudited)



















(Dollars in thousands, except per share data)




































Q2 2018 -

For The Six Months Ending


2018

2017

Q2 2017

June 30,



Second

First

Fourth

Third

Second

First

Percent




Percent

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2018

2017

Variance

Average Balances



















Total assets

$

10,319,375

$

10,055,755

$

10,254,774

$

10,277,476

$

8,720,660

$

8,759,448

18.33

$

10,188,293

$

8,739,947

16.57

Earning assets

9,044,528

8,760,679

8,913,675

8,944,067

7,657,849

7,668,582

18.11

8,903,388

7,663,186

16.18

Securities

1,039,947

833,076

1,043,075

1,147,157

1,069,244

1,043,697

(2.74)

937,083

1,056,541

(11.31)

Mortgage loans held for sale

209,652

152,299

188,795

226,512

168,650

112,105

24.31

181,134

140,534

28.89

Loans, net of unearned

7,704,221

7,646,991

7,535,199

7,375,410

6,293,497

6,198,705

22.42

7,675,764

6,246,363

22.88

Intangibles

633,155

634,898

636,533

636,977

492,349

493,816

28.60

634,022

493,078

28.58

Noninterest-bearing deposits

$

1,867,925

$

1,817,848

$

1,877,789

$

1,849,396

$

1,608,467

$

1,558,809

16.13

$

1,843,025

$

1,583,775

16.37

Interest-bearing deposits

6,521,123

6,314,114

6,180,075

6,259,249

5,540,698

5,581,853

17.69

6,418,190

5,561,162

15.41

Total deposits

8,389,048

8,131,962

8,057,864

8,108,645

7,149,165

7,140,662

17.34

8,261,215

7,144,937

15.62

Borrowed funds

306,800

314,228

579,920

575,816

233,542

282,008

31.37

310,493

257,641

20.51

Shareholders' equity

1,542,071

1,523,873

1,518,131

1,495,591

1,258,935

1,246,903

22.49

1,533,022

1,252,952

22.35
























































Q2 2018 -

As of

2018

2017

Q4 2017

June 30,

Second

First

Fourth

Third

Second

First

Percent




Percent

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2018

2017

Variance

Balances at period end



















Total assets

$

10,544,475

$

10,238,313

$

9,829,981

$

10,323,687

$

8,872,272

$

8,764,711

7.27

$

10,544,475

$

8,872,272

18.85

Earning assets

9,239,200

8,938,117

8,493,741

8,943,570

7,763,775

7,690,045

8.78

9,239,200

7,763,775

19.00

Securities

1,088,779

948,365

671,488

1,150,459

1,076,625

1,044,862

62.14

1,088,779

1,076,625

1.13

Mortgage loans held for sale

245,046

204,472

108,316

207,288

232,398

158,619

126.23

245,046

232,398

5.44

Non purchased loans

6,057,766

5,830,122

5,588,556

5,293,467

5,058,898

4,834,085

8.40

6,057,766

5,058,898

19.74

Purchased loans

1,709,891

1,867,948

2,031,766

2,155,141

1,312,109

1,401,720

(15.84)

1,709,891

1,312,109

30.32

Total loans

7,767,657

7,698,070

7,620,322

7,448,608

6,371,007

6,235,805

1.93

7,767,657

6,371,007

21.92

Intangibles

632,311

633,905

635,556

637,264

491,552

493,045

(0.51)

632,311

491,552

28.64

Noninterest-bearing deposits

$

1,888,561

$

1,861,136

$

1,840,424

$

1,835,300

$

1,642,863

$

1,579,581

2.62

$

1,888,561

$

1,642,863

14.96

Interest-bearing deposits

6,492,159

6,496,633

6,080,651

6,283,218

5,559,162

5,651,269

6.77

6,492,159

5,559,162

16.78

Total deposits

8,380,720

8,357,769

7,921,075

8,118,518

7,202,025

7,230,850

5.80

8,380,720

7,202,025

16.37

Borrowed funds

520,747

265,191

297,360

591,933

312,077

202,006

75.12

520,747

312,077

66.86

Shareholders' equity

1,558,668

1,532,765

1,514,983

1,511,826

1,271,786

1,251,065

2.88

1,558,668

1,271,786

22.56

Market value per common share

$

45.52

$

42.56

$

40.89

$

42.90

$

43.74

$

39.69

11.32

$

45.52

$

43.74

4.07

Book value per common share

31.54

31.03

30.72

30.65

28.62

28.18

2.67

31.54

28.62

10.20

Tangible book value per common share

18.74

18.20

17.83

17.73

17.56

17.07

5.10

18.74

17.56

6.72

Shareholders' equity to assets (actual)

14.78

%

14.97

%

15.41

%

14.64

%

14.33

%

14.27

%


14.78

%

14.33

%

Tangible capital ratio (3)

9.35

%

9.36

%

9.56

%

9.03

%

9.31

%

9.16

%


9.35

%

9.31

%

Leverage ratio

10.65

%

10.61

%

10.18

%

10.05

%

10.68

%

10.39

%


10.65

%

10.68

%

Common equity tier 1 capital ratio

11.71

%

11.38

%

11.34

%

11.21

%

11.65

%

11.69

%


11.71

%

11.65

%

Tier 1 risk-based capital ratio

12.73

%

12.41

%

12.39

%

12.26

%

12.86

%

12.93

%


12.73

%

12.86

%

Total risk-based capital ratio

14.75

%

14.44

%

14.46

%

14.30

%

15.00

%

15.11

%


14.75

%

15.00

%

 

 

RENASANT CORPORATION



















(Unaudited)



















(Dollars in thousands, except per share data)




































Q2 2018 -

As of


2018

2017

Q4 2017

June 30,



Second

First

Fourth

Third

Second

First

Percent




Percent

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

Variance

2018

2017

Variance

Non purchased loans



















Commercial, financial, agricultural

$

790,363

$

803,146

$

763,823

$

707,835

$

657,713

$

626,237

3.47

$

790,363

$

657,713

20.17

Lease Financing

52,423

52,536

54,013

51,902

49,066

47,816

(2.94)

52,423

49,066

6.84

Real estate- construction

642,380

582,430

547,658

477,638

424,861

378,061

17.3

642,380

424,861

51.20

Real estate - 1-4 family mortgages

1,912,450

1,785,271

1,729,534

1,644,060

1,551,934

1,485,663

10.58

1,912,450

1,551,934

23.23

Real estate - commercial mortgages

2,554,955

2,503,680

2,390,076

2,311,340

2,281,220

2,203,639

6.90

2,554,955

2,281,220

12.00

Installment loans to individuals

105,195

103,059

103,452

100,692

94,104

92,669

1.68

105,195

94,104

11.79

          Loans, net of unearned

$

6,057,766

$

5,830,122

$

5,588,556

$

5,293,467

$

5,058,898

$

4,834,085

8.40

$

6,057,766

$

5,058,898

19.74

Purchased loans



















Commercial, financial, agricultural

$

197,455

$

243,672

$

275,570

$

301,100

$

102,869

$

115,229

(28.35)

$

197,455

$

102,869

91.95

Lease Financing

?

?

?

?

?

?

?

?

?

?

Real estate- construction

70,438

75,061

85,731

100,082

35,946

35,673

(17.84)

70,438

35,946

95.96

Real estate - 1-4 family mortgages

520,649

572,830

614,187

651,792

400,460

431,904

(15.23)

520,649

400,460

30.01

Real estate - commercial mortgages

906,219

960,273

1,037,454

1,079,049

759,743

804,790

(12.65)

906,219

759,743

19.28

Installment loans to individuals

15,130

16,112

18,824

23,118

13,091

14,124

(19.62)

15,130

13,091

15.58

          Loans, net of unearned

$

1,709,891

$

1,867,948

$

2,031,766

$

2,155,141

$

1,312,109

$

1,401,720

(15.84)

$

1,709,891

$

1,312,109

30.32

Asset quality data



















Non purchased assets



















          Nonaccrual loans

$

8,921

$

9,403

$

10,250

$

9,970

$

11,413

$

12,629

(12.97)

$

8,921

$

11,413

(21.83)

          Loans 90 past due or more

2,190

3,605

3,015

3,295

1,283

2,175

(27.36)

2,190

1,283

70.69

          Nonperforming loans

11,111

13,008

13,265

13,265

12,696

14,804

(16.24)

11,111

12,696

(12.48)

          Other real estate owned

4,698

4,801

4,410

4,524

4,305

5,056

6.53

4,698

4,305

9.13

          Nonperforming assets not purchased

$

15,809

$

17,809

$

17,675

$

17,789

$

17,001

$

19,860

(10.56)

$

15,809

$

17,001

(7.01)

Purchased assets



















          Nonaccrual loans

$

4,561

$

5,340

$

4,424

$

4,868

$

5,927

$

8,495

3.10

$

4,561

$

5,927

(23.05)

          Loans 90 past due or more

5,491

4,564

5,731

7,349

8,128

11,897

(4.19)

5,491

8,128

(32.44)

          Nonperforming loans

10,052

9,904

10,155

12,217

14,055

20,392

(1.01)

10,052

14,055

(28.48)

          Other real estate owned

9,006

9,754

11,524

13,296

15,409

16,266

(21.85)

9,006

15,409

(41.55)

          Nonperforming assets purchased

$

19,058

$

19,658

$

21,679

$

25,513

$

29,464

$

36,658

(12.09)

$

19,058

$

29,464

(35.32)

Net loan charge-offs (recoveries)

$

856

$

1,560

$

470

$

1,768

$

524

$

1,314

82.13

$

2,416

$

1,838

31.45

Allowance for loan losses

$

47,355

$

46,401

$

46,211

$

44,531

$

44,149

$

42,923

2.48

$

47,355

$

44,149

7.26

Annualized net loan charge-offs / average loans

0.04

%

0.08

%

0.02

%

0.10

%

0.03

%

0.09

%


0.06

%

0.06

%

Nonperforming loans / total loans*

0.27

%

0.30

%

0.31

%

0.34

%

0.42

%

0.56

%


0.27

%

0.42

%

Nonperforming assets / total assets*

0.33

%

0.37

%

0.40

%

0.42

%

0.52

%

0.64

%


0.33

%

0.52

%

Allowance for loan losses / total loans*

0.61

%

0.60

%

0.61

%

0.60

%

0.69

%

0.69

%


0.61

%

0.69

%

Allowance for loan losses / nonperforming loans*

223.76

%

202.52

%

197.31

%

174.75

%

165.04

%

121.95

%


223.76

%

165.04

%

Nonperforming loans / total loans**

0.18

%

0.22

%

0.24

%

0.25

%

0.25

%

0.31

%


0.18

%

0.25

%

Nonperforming assets / total assets**

0.15

%

0.17

%

0.18

%

0.17

%

0.19

%

0.23

%


0.15

%

0.19

%

Allowance for loan losses / total loans**

0.78

%

0.80

%

0.83

%

0.84

%

0.87

%

0.89

%


0.78

%

0.87

%

Allowance for loan losses / nonperforming loans**

426.20

%

356.71

%

348.37

%

335.70

%

347.74

%

289.94

%


426.20

%

347.74

%

*Based on all assets (includes purchased assets)















**Excludes all purchased assets















 

 

RENASANT CORPORATION





































(Unaudited)





































(Dollars in thousands, except per share data)






































































































Three Months Ending

For The Six Months Ending

June 30, 2018

March 31, 2018

June 30, 2017

June 30, 2018

June 30, 2017

Average

Interest

Yield/

Average

Interest

Yield/

Average

Interest

Yield/

Average

Interest

Yield/

Average

Interest

Yield/

Balance

Income/

 Rate

Balance

Income/

 Rate

Balance

Income/

 Rate

Balance

Income/

 Rate

Balance

Income/

 Rate

Expense

Expense

Expense


Expense

Expense

Assets





























Interest-earning assets:





























Loans





























          Non purchased

$

5,920,430

$

69,737

4.72

%

$

5,689,210

$

64,611

4.61

%

$

4,938,922

$

54,955

4.46

%

$

5,805,459

$

134,348

4.67

%

$

4,846,290

$

106,098

4.41

%

          Purchased

1,783,791

27,308

6.14

1,957,781

28,762

5.96

1,354,575

23,902

7.08

1,870,305

56,070

6.05

1,400,073

46,469

6.69

Total loans

7,704,221

97,045

5.05

7,646,991

93,373

4.95

6,293,497

78,857

5.03

7,675,764

190,418

5.00

6,246,363

152,567

4.93

Mortgage loans held for sale

209,652

2,381

4.56

152,299

1,671

4.45

168,650

1,831

4.35

181,134

4,052

4.51

140,534

2,980

4.28

Securities:





























Taxable(1)

819,004

5,638

2.76

606,642

3,914

2.62

737,494

4,340

2.36

713,410

9,552

2.70

721,240

8,410

2.35

Tax-exempt

220,943

2,358

4.28

226,434

2,406

4.31

331,750

3,891

4.70

223,673

4,764

4.30

335,301

8,188

4.92

Total securities

1,039,947

7,996

3.08

833,076

6,320

3.08

1,069,244

8,231

3.09

937,083

14,316

3.08

1,056,541

16,598

3.17

Interest-bearing balances with banks

90,708

569

2.52

128,313

583

1.84

126,458

510

1.62

109,407

1,152

2.12

219,748

1,065

0.98

Total interest-earning assets

9,044,528

107,991

4.79

8,760,679

101,947

4.72

7,657,849

89,429

4.68

8,903,388

209,938

4.75

7,663,186

173,210

4.56

Cash and due from banks

158,173





163,141





116,783





160,644





124,287




Intangible assets

633,155





634,898





492,349





634,022





493,078




Other assets

483,519





497,037





453,679





490,239





459,396




Total assets

$

10,319,375





$

10,055,755





$

8,720,660





$

10,188,293





$

8,739,947




Liabilities and shareholders' equity





























Interest-bearing liabilities:





























Deposits:





























Interest-bearing demand(2)

4,054,909

5,441

0.54

3,911,802

3,407

0.35

3,368,363

1,917

0.23

3,983,751

8,848

0.45

3,389,368

3,730

0.22

          Savings deposits

593,227

227

0.15

581,194

151

0.11

568,535

98

0.07

587,244

378

0.13

561,300

194

0.07

          Time deposits

1,872,987

5,251

1.12

1,821,118

4,501

1.00

1,603,800

3,300

0.83

1,847,195

9,752

1.06

1,610,494

6,539

0.82

Total interest-bearing deposits

6,521,123

10,919

0.67

6,314,114

8,059

0.52

5,540,698

5,315

0.38

6,418,190

18,978

0.60

5,561,162

10,463

0.38

Borrowed funds

306,800

3,266

4.27

314,228

3,081

3.98

233,542

2,661

4.57

310,493

6,347

4.12

257,641

5,387

4.22

Total interest-bearing liabilities

6,827,923

14,185

0.83

6,628,342

11,140

0.68

5,774,240

7,976

0.55

6,728,683

25,325

0.76

5,818,803

15,850

0.55

Noninterest-bearing deposits

1,867,925





1,817,848





1,608,467





1,843,025





1,583,775




Other liabilities

81,456





85,692





79,018





83,563





84,417




Shareholders' equity

1,542,071





1,523,873





1,258,935





1,533,022





1,252,952




Total liabilities and shareholders' equity

$

10,319,375





$

10,055,755





$

8,720,660





$

10,188,293





$

8,739,947




Net interest income/ net interest margin


$

93,806

4.16

%


$

90,807

4.20

%


$

81,453

4.27

%


$

184,613

4.18

%


$

157,360

4.14

%

Cost of funding




0.65





0.53





0.43





0.60





0.43

Cost of total deposits




0.52





0.40





0.30





0.46





0.30









































(1)U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which we operate.





















(2)Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.





















 

 

RENASANT CORPORATION




















(Unaudited)




















(Dollars in thousands, except per share data)





























RECONCILIATION OF GAAP TO NON-GAAP

























Six Months Ended




2018

2017


June 30,





Second

First

Fourth

Third

Second

First








Quarter

Quarter

Quarter

Quarter

Quarter

Quarter


2018

2017

Net income (GAAP)

$

36,710

$

33,826

$

16,511

$

26,421

$

25,284

$

23,972



$

70,536

$

49,256


Amortization of intangibles, net of tax

1,241

1,284

1,133

1,149

1,013

1,064



2,525

2,077

Tangible net income (non-GAAP)

$

37,951

$

35,110

$

17,644

$

27,570

$

26,297

$

25,036



$

73,061

$

51,333
























Net income (GAAP)

$

36,710

$

33,826

16,511

$

26,421

$

25,284

$

23,972



$

70,536

$

49,256


Merger & conversion expenses, net of tax

389

700

479

4,075

2,065

235



1,090

2,302


Debt prepayment penalties, net of tax

?

?

?

?

?

140



?

139


Write-down of net deferred tax assets

?

?

14,486

?

?

?



?

?


Net income with exclusions (non-GAAP)

$

37,099

$

34,526

$

31,476

$

30,496

$

27,349

$

24,347



$

71,626

$

51,697
























Average shareholders' equity (GAAP)

$

1,542,071

$

1,523,873

$

1,518,131

$

1,495,591

$

1,258,935

$

1,246,903



$

1,533,022

$

1,252,952


Intangibles

633,155

634,898

636,533

636,977

492,349

493,816



634,022

493,078

Average tangible s/h's equity (non-GAAP)

$

908,916

$

888,975

$

881,598

$

858,614

$

766,586

$

753,087



$

899,000

$

759,874
























Average total assets (GAAP)

$

10,319,375

$

10,055,755

$

10,254,774

$

10,277,476

$

8,720,660

$

8,759,448



$

10,188,293

$

8,739,947


Intangibles

633,155

634,898

636,533

636,977

492,349

493,816



634,022

493,078

Average tangible assets (non-GAAP)

$

9,686,220

$

9,420,857

$

9,618,241

$

9,640,499

$

8,228,311

$

8,265,632



$

9,554,271

$

8,246,869
























Actual shareholders' equity (GAAP)

$

1,558,668

$

1,532,765

$

1,514,983

$

1,511,826

$

1,271,786

$

1,251,065



$

1,558,668

$

1,271,786


Intangibles

632,311

633,905

635,556

637,264

491,552

493,045



632,311

491,552

Actual tangible s/h's equity (non-GAAP)

$

926,357

$

898,860

$

879,427

$

874,562

$

780,234

$

758,020



$

926,357

$

780,234
























Actual total assets (GAAP)

$

10,544,475

$

10,238,313

$

9,829,981

$

10,323,687

$

8,872,272

$

8,764,711



$

10,544,475

$

8,872,272


Intangibles

632,311

633,905

635,556

637,264

491,552

493,045



632,311

491,552

Actual tangible assets (non-GAAP)

$

9,912,164

$

9,604,408

$

9,194,425

$

9,686,423

$

8,380,720

$

8,271,666



$

9,912,164

$

8,380,720
























(1) Return on Average Equity


















Return on avg s/h's equity (GAAP)

9.55

%

9.00

%

4.31

%

7.01

%

8.06

%

7.80

%


9.28

%

7.93

%

Effect of adjustment for intangible assets

7.20

%

7.02

%

3.63

%

5.73

%

5.70

%

5.68

%


7.11

%

5.69

%

Return on avg tangible s/h's equity (non-GAAP)

16.75

%

16.02

%

7.94

%

12.74

%

13.76

%

13.48

%


16.39

%

13.62

%























Return on avg s/h's equity with exclusions (GAAP)

9.65

%

9.19

%

8.23

%

8.09

%

8.71

%

7.92

%


9.42

%

8.32

%

Effect of adjustment for intangible assets

7.27

%

7.15

%

6.44

%

6.53

%

6.13

%

5.76

%


7.21

%

5.94

%

Return on avg tangible s/h's equity with exclusion (non-GAAP)

16.92

%

16.34

%

14.67

%

14.62

%

14.84

%

13.68

%


16.63

%

14.27

%























(2) Return on Average Assets


















Return on (average) assets (GAAP)

1.43

%

1.36

%

0.64

%

1.02

%

1.16

%

1.11

%


1.4

%

1.14

%

Effect of adjustment for intangible assets

0.14

%

0.15

%

0.09

%

0.11

%

0.12

%

0.12

%


0.15

%

0.12

%

Return on average tangible assets (non-GAAP)

1.57

%

1.51

%

0.73

%

1.13

%

1.28

%

1.23

%


1.54

%

1.26

%























Return on avg assets with exclusions (GAAP)

1.44

%

1.39

%

1.22

%

1.18

%

1.26

%

1.13

%


1.42

%

1.19

%

Effect of adjustment for intangible assets

0.14

%

0.15

%

0.13

%

0.12

%

0.12

%

0.12

%


0.15

%

0.12

%

Return on avg tangible assets with exclusions (non-GAAP)

1.59

%

1.54

%

1.35

%

1.30

%

1.38

%

1.25

%


1.57

%

1.31

%























(3) Shareholder Equity Ratio


















Shareholders' equity to (actual) assets (GAAP)

14.78

%

14.97

%

15.41

%

14.64

%

14.33

%

14.27

%


14.78

%

14.33

%

Effect of adjustment for intangible assets

5.44

%

5.61

%

5.85

%

5.62

%

5.02

%

5.11

%


5.44

%

5.02

%

Tangible capital ratio (non-GAAP)

9.35

%

9.36

%

9.56

%

9.03

%

9.31

%

9.16

%


9.35

%

9.31

%

 

 

RENASANT CORPORATION

















(Unaudited)

















(Dollars in thousands, except per share data)


























CALCULATION OF EFFICIENCY RATIO














































Six Months Ended


2018

2017


June 30,



Second

First

Fourth

Third

Second

First










Quarter

Quarter

Quarter

Quarter

Quarter

Quarter


2018

2017

Interest income (FTE)

$

107,991

$

101,947

$

107,773

$

102,613

$

89,429

$

83,781



$

209,938

$

173,210

Interest expense

14,185

11,140

11,325

10,678

7,976

7,874



25,325

15,850

Net Interest income (FTE)

$

93,806

$

90,807

$

96,448

$

91,935

$

81,453

$

75,907



$

184,613

$

157,360






















Total noninterest income

$

35,581

$

33,953

$

32,441

$

33,413

$

34,265

$

32,021



$

69,534

$

66,286

Securities gains (losses)

?

?

91

57

?

?



?

?

Total noninterest income

$

35,581

$

33,953

$

32,350

$

33,356

$

34,265

$

32,021



$

69,534

$

66,286

Total Income (FTE)

$

129,387

$

124,760

$

128,798

$

125,291

$

115,718

$

107,928



$

254,147

$

223,646






















Total noninterest expense

$

79,026

$

77,944

$

76,808

$

80,660

$

74,841

$

69,309



$

156,970

$

144,150

Amortization of intangibles

1,594

1,651

1,708

1,766

1,493

1,563



3,245

3,056

Merger-related expenses

500

900

723

6,266

3,044

345



1,400

3,389

Debt extinguishment penalty

?

?

?

?

?

205



?

205

Total noninterest expense

$

76,932

$

75,393

$

74,377

$

72,628

$

70,304

$

67,196



$

152,325

$

137,500






















(4) Efficiency Ratio

59.46

%

60.43

%

57.75

%

57.97

%

60.75

%

62.26

%


59.94

%

61.48

%

 

Contacts:

For Media:

For Financials:

John Oxford

Kevin Chapman

Senior Vice President

Executive Vice President

Director of Marketing and Public Relations

Chief Operating and Financial Officer

(662) 680-1219

(662) 680-1450

[email protected]



[email protected]

 

SOURCE Renasant Corporation


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