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Mergers and Acquisitions | 12 Months Ended
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Dec. 31, 2017
Business Combinations [Abstract] |
Mergers and Acquisitions | Mergers and Acquisitions (Dollar amounts in thousands) Acquisition of Metropolitan BancGroup, Inc. Effective July 1, 2017, the Company completed its acquisition of Metropolitan BancGroup, Inc. (“Metropolitan”), the parent company of Metropolitan Bank, in a transaction valued at approximately $219,461. The Company issued 4,883,182 shares of common stock and paid approximately $4,764 to Metropolitan stock option holders for 100% of the voting equity interest in Metropolitan. At closing, Metropolitan merged with and into the Company, with the Company the surviving corporation in the merger; immediately thereafter, Metropolitan Bank merged with and into Renasant Bank, with Renasant Bank the surviving banking corporation in the merger. On July 1, 2017, Metropolitan operated eight banking locations in Nashville and Memphis, Tennessee and the Jackson, Mississippi Metropolitan Statistical Area. The Company recorded approximately $147,478 in intangible assets which consist of goodwill of $140,512 and a core deposit intangible of $6,966. Goodwill resulted from a combination of revenue enhancements from expansion in existing markets and efficiencies resulting from operational synergies. The fair value of the core deposit intangible is being amortized on an accelerated basis over the estimated useful life, currently expected to be approximately 10 years. The goodwill is not deductible for income tax purposes. The following table summarizes the allocation of purchase price to assets and liabilities acquired in connection with the Company’s acquisition of Metropolitan based on their fair values on July 1, 2017.
Purchase Price: |  |
Shares issued to common shareholders | 4,883,182 |  |
Purchase price per share | $ | 43.74 |  |
Value of stock paid |  | $ | 213,590 |
Cash paid for fractional shares |  | 5 |
Cash settlement for stock options |  | 4,764 |
Deal charges paid on behalf of Metropolitan, net of taxes |  | 1,102 |
Total Purchase Price |  | $ | 219,461 |
Net Assets Acquired: |  |
Stockholders’ equity at acquisition date | $ | 89,253 |  |
Increase (decrease) to net assets as a result of fair value adjustments to assets acquired and liabilities assumed: |  |
Securities | (731 | ) |
Mortgage loans held for sale | 30 |  |
Loans, net of Metropolitan’s allowance for loan losses | (13,071 | ) |
Premises and equipment | (4,629 | ) |
Intangible assets, net of Metropolitan’s existing intangibles | 2,340 |  |
Other real estate owned | (1,251 | ) |
Other assets | 2,731 |  |
Deposits | (3,603 | ) |
Borrowings | (1,294 | ) |
Other liabilities | 3,930 |  |
Deferred income taxes | 5,244 |  |
Total Net Assets Acquired |  | 78,949 |
Goodwill resulting from merger(1) |  | $ | 140,512 |
(1) The goodwill resulting from the merger has been assigned to the Community Banks operating segment. The following table summarizes the fair value on July 1, 2017 of assets acquired and liabilities assumed at acquisition date in connection with the merger with Metropolitan. The Company is finalizing the fair values of assets acquired and liabilities assumed related to the Metropolitan acquisition; accordingly, the amounts in the table remain subject to change.
Cash and cash equivalents |  | $ | 47,556 |
Securities |  | 108,697 |
Loans, including mortgage loans held for sale, net of unearned income |  | 967,804 |
Premises and equipment |  | 8,576 |
Other real estate owned |  | 1,203 |
Intangible assets |  | 147,478 |
Other assets |  | 69,567 |
Total assets |  | 1,350,881 |
Deposits |  | 942,084 |
Borrowings |  | 174,522 |
Other liabilities |  | 20,685 |
Total liabilities |  | 1,137,291 |
The following unaudited pro forma combined condensed consolidated financial information presents the results of operations for the twelve months ended December 31, 2017 and 2016 of the Company as though the Metropolitan merger had been completed as of January 1, 2016 (and the KeyWorth merger, discussed below, was still completed on April 1, 2016). The unaudited estimated pro forma information combines the historical results of Metropolitan with the Company’s historical consolidated results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the periods presented. The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2016. The pro forma information does not include the effect of any cost-saving or revenue-enhancing strategies. Merger expenses are reflected in the period in which they were incurred.
| Twelve Months Ended
| December 31,
| 2017 |  | 2016
Net interest income - pro forma (unaudited) | $ | 356,787 |  |  | $ | 340,796 |
Net income - pro forma (unaudited) | $ | 89,554 |  |  | $ | 102,881 |
Earnings per share - pro forma (unaudited): |  |  |
Basic | $ | 1.82 |  |  | $ | 2.21 |
Diluted | $ | 1.81 |  |  | $ | 2.19 |
The Company’s consolidated financial statements as of and for the year ended December 31, 2017 include the impact of Metropolitan’s operations since the acquisition date. Due to the system conversion during the third quarter of 2017 and the integration of Metropolitan’s operating activities into the Company’s existing operations, historical reporting for Metropolitan operations is impracticable, and, therefore, disclosure of the amounts of revenue and expenses of Metropolitan included in the Company’s Consolidated Statement of Income since the acquisition date is impracticable. Acquisition of KeyWorth Bank Effective April 1, 2016, the Company completed its acquisition of KeyWorth Bank (“KeyWorth”) in a transaction valued at approximately $58,884. The Company issued 1,680,021 shares of common stock and paid approximately $3,594 to KeyWorth stock option and warrant holders for 100% of the voting equity interest in KeyWorth. At closing, KeyWorth merged with and into Renasant Bank, with Renasant Bank the surviving banking corporation in the merger. As a result of the KeyWorth acquisition, the Company acquired total assets with a fair value of $415,232, total loans with a fair value of $272,330 and total deposits with a fair value of $348,961, and six banking locations in the Atlanta metropolitan area. The Company recorded approximately $22,643 in intangible assets which consist of goodwill of $20,633 and a core deposit intangible of $2,010. Goodwill resulted from a combination of revenue enhancements from expansion into new markets and efficiencies resulting from operational synergies. The fair value of the core deposit intangible is being amortized on an accelerated basis over the estimated useful life, currently expected to be approximately 10 years. The goodwill is not deductible for income tax purposes.

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