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 | ||
joxford@renasant.com | kchapman@renasant.com | ||
RENASANT CORPORATION ANNOUNCES
EARNINGS FOR THE FOURTH QUARTER OF 2019
TUPELO, MISSISSIPPI (January 21, 2020) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the fourth quarter of 2019. Net income for the fourth quarter of 2019 was $38.7 million, as compared to $44.4 million for the fourth quarter of 2018. Basic and diluted earnings per share (“EPS”) were $0.68 and $0.67, respectively, for the fourth quarter of 2019, as compared to basic and diluted EPS of $0.76 for the fourth quarter of 2018.
Net income for the year ending December 31, 2019, was $167.9 million, as compared to $146.9 million for the same period in 2018. Basic and diluted EPS were $2.89 and $2.88, respectively, for 2019, as compared to basic and diluted EPS of $2.80 and $2.79, respectively, for the same period in 2018.
"We closed 2019 on a strong note and maintained solid performance ratios through the fourth quarter even while absorbing the full impact of two interest rate cuts on our margin during the quarter," said Renasant Chairman, E. Robinson McGraw. "Our management team did an excellent job of navigating through the headwinds we faced throughout 2019 and has us well positioned for continued success in 2020 and beyond. We also continued to prudently manage our capital structure and repurchased approximately $21.3 million of our common stock in the quarter."
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As previously discussed, the Company targeted market disruption across its footprint by hiring new production team members throughout 2019. The Company's net income for the fourth quarter of 2019 includes approximately $3.5 million in after-tax expense related to team members that have joined the Company in 2019. The expense related to these strategic hires decreased diluted EPS by $0.06 for the fourth quarter of 2019.
"Our fourth quarter results were highlighted by continued strong loan growth," commented C. Mitchell Waycaster, Renasant President and Chief Executive Officer. "Throughout our footprint our team members are continuing to execute our growth strategy previously laid out. In addition to strong loan growth year over year, we continued to prioritize growing non-interest bearing deposits, which lowers the cost of funding needed to support our loan growth. As Robin previously mentioned, we believe that we have positioned ourselves well for success in the coming years."
Impact of Certain Expenses and Charges
From time to time, the Company incurs expenses and charges in connection with certain transactions with respect to which management is unable to accurately predict 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, except per share data):
Three months ended December 31, 2019 | Three months ended December 31, 2018 | ||||||||||||||||||
Pre-tax | After-tax | Impact to Diluted EPS | Pre-tax | After-tax | Impact to Diluted EPS | ||||||||||||||
Earnings, as reported | $ | 48,266 | $ | 38,733 | $ | 0.67 | $ | 57,518 | $ | 44,420 | $ | 0.76 | |||||||
Merger and conversion expenses | 76 | 61 | — | 1,625 | 1,255 | 0.02 | |||||||||||||
MSR valuation adjustment | (1,296 | ) | (1,040 | ) | (0.01 | ) | — | — | — | ||||||||||
Earnings, with exclusions (Non-GAAP) | $ | 47,046 | $ | 37,754 | $ | 0.66 | $ | 59,143 | $ | 45,675 | $ | 0.78 | |||||||
Year ended December 31, 2019 | Year ended December 31, 2018 | ||||||||||||||||||
Pre-tax | After-tax | Impact to Diluted EPS | Pre-tax | After-tax | Impact to Diluted EPS | ||||||||||||||
Earnings, as reported | $ | 216,114 | $ | 167,914 | $ | 2.88 | $ | 188,647 | $ | 146,920 | $ | 2.79 | |||||||
Merger and conversion expenses | 279 | 216 | — | 14,246 | 11,095 | 0.21 | |||||||||||||
Debt prepayment penalty | 54 | 41 | — | — | — | — | |||||||||||||
MSR valuation adjustment | 1,836 | 1,427 | 0.03 | — | — | — | |||||||||||||
Earnings, with exclusions (Non-GAAP) | $ | 218,283 | $ | 169,598 | $ | 2.91 | $ | 202,893 | $ | 158,015 | $ | 3.00 | |||||||
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A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.
Profitability Metrics
The following table presents the Company’s profitability metrics, including and excluding the impact of after-tax merger and conversion expenses, debt prepayment penalties and the mortgage servicing rights (MSR) valuation adjustment, as applicable, for the dates presented:
As Reported | With Exclusions (Non-GAAP) | |||||||||||
Three Months Ended | Three Months Ended | |||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | December 31, 2019 | September 30, 2019 | December 31, 2018 | |||||||
Return on average assets | 1.17 | % | 1.16 | % | 1.39 | % | 1.14 | % | 1.23 | % | 1.43 | % |
Return on average tangible assets (Non-GAAP) | 1.31 | % | 1.30 | % | 1.56 | % | 1.28 | % | 1.39 | % | 1.60 | % |
Return on average equity | 7.21 | % | 6.97 | % | 8.72 | % | 7.03 | % | 7.43 | % | 8.97 | % |
Return on average tangible equity (Non-GAAP) | 13.86 | % | 13.38 | % | 17.44 | % | 13.52 | % | 14.23 | % | 17.92 | % |
As Reported | With Exclusions (Non-GAAP) | |||||||||
Twelve Months Ended | Twelve Months Ended | |||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||
Return on average assets | 1.30 | % | 1.32 | % | 1.32 | % | 1.42 | % | ||
Return on average tangible assets (Non-GAAP) | 1.46 | % | 1.47 | % | 1.48 | % | 1.58 | % | ||
Return on average equity | 7.97 | % | 8.64 | % | 8.05 | % | 9.29 | % | ||
Return on average tangible equity (Non-GAAP) | 15.39 | % | 15.98 | % | 15.54 | % | 17.14 | % | ||
Financial Condition
Total assets were $13.40 billion at December 31, 2019, as compared to $12.93 billion at December 31, 2018. The Company’s acquisition of Brand Group Holdings, Inc. was completed on September 1, 2018; the Company’s results of operations for the year ended December 31, 2019 as compared to the year ended December 31, 2018 reflect the impact of this acquisition.
Total loans held for investment were $9.69 billion at December 31, 2019, as compared to $9.08 billion at December 31, 2018, representing annual net loan growth of 5.46% after excluding the
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balance of a portfolio of non-mortgage consumer loans, which was transferred from our held for sale portfolio during the year. When compared to the balance at September 30, 2019 of $9.31 billion, the Company had linked-quarter annualized net loan growth of 16.01%.
Total deposits increased to $10.21 billion at December 31, 2019, from $10.13 billion at December 31, 2018. Non-interest bearing deposits increased $233.1 million to $2.55 billion, or 24.99% of total deposits, at December 31, 2019, as compared to $2.32 billion, or 22.89% of total deposits, at December 31, 2018.
Results of Operations
Net interest income was $109.3 million for the fourth quarter of 2019, as compared to $108.8 million for the third quarter of 2019 and $115.5 million for the fourth quarter of 2018. The following table presents reported taxable equivalent net interest margin and yield on loans, including loans held for sale, for the periods presented (in thousands).
Three Months Ended | |||||||||
December 31, | September 30, | December 31, | |||||||
2019 | 2019 | 2018 | |||||||
Taxable equivalent net interest income | $ | 111,283 | $ | 110,276 | $ | 116,933 | |||
Average earning assets | $ | 11,277,000 | $ | 10,993,645 | $ | 10,952,024 | |||
Net interest margin | 3.90 | % | 3.98 | % | 4.24 | % | |||
Taxable equivalent interest income on loans | $ | 124,919 | $ | 125,391 | $ | 127,880 | |||
Average loans, including loans held for sale | $ | 9,808,441 | $ | 9,494,689 | $ | 9,548,486 | |||
Loan yield | 5.04 | % | 5.24 | % | 5.31 | % | |||
The impact from interest income collected on problem loans and purchase accounting adjustments on loans to total interest income on loans, including loans held for sale, loan yield and net interest margin is shown in the following table for the periods presented (in thousands).
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Three Months Ended | |||||||||
December 31, | September 30, | December 31, | |||||||
2019 | 2019 | 2018 | |||||||
Net interest income collected on problem loans | $ | 152 | $ | 905 | $ | 744 | |||
Accretable yield recognized on purchased loans(1) | 6,661 | 5,510 | 7,236 | ||||||
Total impact to interest income | $ | 6,813 | $ | 6,415 | $ | 7,980 | |||
Impact to total loan yield | 0.28 | % | 0.27 | % | 0.33 | % | |||
Impact to net interest margin | 0.24 | % | 0.23 | % | 0.29 | % | |||
(1) | Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $4,041, $2,564 and $3,095 for the three months ended December 31, 2019, September 30, 2019, and December 31, 2018, respectively. This additional interest income increased total loan yield by 16 basis points, 11 basis points and 13 basis points for the same periods, respectively, while increasing net interest margin by 14 basis points, 9 basis points and 11 basis points for the same periods, respectively. |
Net interest income was $444.1 million for the twelve months ended December 31, 2019, as compared to $396.5 million for the same period in 2018. The following table presents reported taxable equivalent net interest margin and yield on loans, including loans held for sale, for the periods presented (in thousands).
Twelve Months Ended | ||||||
December 31, | December 31, | |||||
2019 | 2018 | |||||
Taxable equivalent net interest income | $ | 450,413 | $ | 402,426 | ||
Average earning assets | $ | 11,028,040 | $ | 9,662,416 | ||
Net interest margin | 4.08 | % | 4.16 | % | ||
Taxable equivalent interest income on loans | $ | 505,411 | $ | 431,734 | ||
Average loans, including loans held for sale | $ | 9,527,290 | $ | 8,451,857 | ||
Loan yield | 5.30 | % | 5.11 | % | ||
The impact from interest income collected on problem loans and purchase accounting adjustments on loans to total interest income on loans, including loans held for sale, loan yield and net interest margin is shown in the following table for the periods presented (in thousands).
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Twelve Months Ended | ||||||
December 31, | December 31, | |||||
2019 | 2018 | |||||
Net interest income collected on problem loans | $ | 4,042 | $ | 2,861 | ||
Accretable yield recognized on purchased loans(1) | 27,227 | 24,454 | ||||
Total impact to interest income | $ | 31,269 | $ | 27,315 | ||
Impact to total loan yield | 0.33 | % | 0.32 | % | ||
Impact to net interest margin | 0.28 | % | 0.28 | % | ||
(1) | Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $14,635 and $12,460 for the twelve months ended December 31, 2019 and 2018, respectively. This additional interest income increased total loan yield by 15 basis points for the same periods, while increasing net interest margin by 13 basis points for the same periods. |
For the fourth quarter of 2019, the cost of total deposits was 75 basis points, as compared to 84 basis points for the third quarter of 2019 and 67 basis points in the fourth quarter of 2018. The cost of total deposits was 80 basis points for the year ending December 31, 2019, as compared to 56 basis points for the same period in 2018. The table below presents, by type, our funding sources and the total cost of each funding source for the periods presented:
Percentage of Total Average Deposits and Borrowed Funds | Cost of Funds | ||||||||||||||||
Three Months Ending | Three Months Ending | ||||||||||||||||
December 31, | September 30, | December 31, | December 31, | September 30, | December 31, | ||||||||||||
2019 | 2019 | 2018 | 2019 | 2019 | 2018 | ||||||||||||
Noninterest-bearing demand | 24.12 | % | 23.75 | % | 22.71 | % | — | % | — | % | — | % | |||||
Interest-bearing demand | 43.86 | 45.02 | 44.89 | 0.77 | 0.90 | 0.69 | |||||||||||
Savings | 6.11 | 6.19 | 5.82 | 0.17 | 0.22 | 0.16 | |||||||||||
Time deposits | 20.41 | 22.10 | 22.73 | 1.76 | 1.77 | 1.45 | |||||||||||
Borrowed funds | 5.50 | 2.94 | 3.85 | 3.02 | 5.31 | 4.31 | |||||||||||
Total deposits and borrowed funds | 100.00 | % | 100.00 | % | 100.00 | % | 0.87 | % | 0.97 | % | 0.81 | % | |||||
Percentage of Total Average Deposits and Borrowed Funds | Cost of Funds | ||||||||||
Twelve Months Ending | Twelve Months Ending | ||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Noninterest-bearing demand | 23.26 | % | 21.88 | % | — | % | — | % | |||
Interest-bearing demand | 44.89 | 45.62 | 0.85 | 0.56 | |||||||
Savings | 6.11 | 6.41 | 0.19 | 0.15 | |||||||
Time deposits | 21.91 | 21.92 | 1.71 | 1.24 | |||||||
Borrowed funds | 3.83 | 4.17 | 4.17 | 4.01 | |||||||
Total deposits and borrowed funds | 100.00 | % | 100.00 | % | 0.93 | % | 0.70 | % | |||
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Noninterest income for the fourth quarter of 2019 was $37.5 million, as compared to $38.0 million for the third quarter of 2019 and $36.4 million for the fourth quarter of 2018. Noninterest income for 2019 was $153.3 million, as compared to $144.0 million for 2018. Effective July 1, 2019, the Company became subject to the limitations on interchange fees imposed by the Durbin Amendment under the Dodd-Frank Act, which resulted in an approximate $3.0 million reduction in fees and commissions on loans and deposits in each of the the third and fourth quarters of 2019. Mortgage banking income for the fourth quarter of 2019 was $15.2 million, compared to $15.7 million for the third quarter of 2019 and $12.0 million for the fourth quarter of 2018. Mortgage banking income during the third quarter of 2019 was negatively impacted by a MSR valuation adjustment of $3.1 million, of which $1.3 million was recovered during the fourth quarter of 2019. Mortgage banking income for 2019 was $57.9 million, as compared to $50.1 million for 2018.
Noninterest expense was $95.6 million for the fourth quarter of 2019, as compared to $96.5 million for the third quarter of 2019 and $93.3 million for the fourth quarter of 2018. The Company experienced an increase in salaries and employee benefits during the quarter. This was primarily driven by the impact from new hires made throughout the footprint and the impact from the wholesale mortgage acquisition in the second quarter of 2019. The Company’s efficiency ratio (GAAP) was 64.24% for the fourth quarter of 2019 and 61.98% for the year 2019, while its adjusted efficiency ratio (non-GAAP) was 63.43% and 60.44% for the same respective periods. The adjusted efficiency ratio excludes charges for merger and conversion expenses, debt extinguishment penalties, amortization of intangible assets, gains and losses on the sale of securities and the MSR valuation adjustment.
Continued Focus on Prudent Capital Management
In the fourth quarter of 2019, the Company completed the remaining repurchases authorized under its previous $50.0 million stock repurchase program and initiated repurchases under its new $50.0 million stock repurchase program authorized by the Company’s Board of Directors in October 2019. During the fourth quarter of 2019, the Company repurchased $21.3 million of common stock under both programs at a weighted average price of $35.20. There is $30.0 million of repurchase availability remaining under the new stock repurchase program, which will remain in effect until the earlier of October 2020 or the repurchase of the entire amount of common stock authorized to be repurchased by the Board of Directors.
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At December 31, 2019, Tier 1 leverage capital ratio was 10.37%, Common Equity Tier 1 ratio was 11.12%, Tier 1 risk-based capital ratio was 12.14%, and total risk-based capital ratio was 13.78%. All regulatory ratios exceed the minimums required to be considered “well-capitalized.”
Our ratio of shareholders’ equity to assets was 15.87% at December 31, 2019, as compared to 15.80% at December 31, 2018. Our tangible capital ratio (non-GAAP) was 9.25% at December 31, 2019, as compared to 8.92% at December 31, 2018.
Asset Quality Metrics
Total nonperforming assets were $44.3 million at December 31, 2019, an increase of $7.3 million from December 31, 2018, and consisted of $36.3 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $8.0 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 $11.4 million and $5.2 million, respectively, at December 31, 2019, as compared to $13.1 million and $6.2 million, respectively, at December 31, 2018. 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.
• | Non-purchased nonperforming loans were $25.0 million, or 0.33% of total non-purchased loans, at December 31, 2019, as compared to $12.9 million, or 0.20% of total non-purchased loans, at December 31, 2018. Early stage delinquencies, or loans 30-to-89 days past due, as a percentage of total non-purchased loans were 0.30% at December 31, 2019, as compared to 0.27% at December 31, 2018. |
• | Non-purchased OREO was $2.8 million at December 31, 2019, as compared to $4.9 million at December 31, 2018. Non-purchased OREO sales totaled $4.2 million during 2019. |
• | The allowance for loan losses was 0.54% of total loans held for investment at each of December 31, 2019 and 2018. The allowance for loan losses was 0.69% of total non-purchased loans at December 31, 2019, as compared to 0.77% at December 31, 2018. |
• | Net loan charge-offs were $1.6 million, or 0.07% of average loans held for investment on an annualized basis, for the fourth quarter of 2019, as compared to $584 thousand, or 0.03% of average loans on an annualized basis, for the fourth quarter of 2018. Net loan charge-offs were $3.9 million, or 0.04% of average loans for the year 2019, as compared to $4.0 million, or 0.05% of average loans for the year 2018. |
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• | The provision for loan losses was $3.0 million for the fourth quarter of 2019, as compared to $1.0 million for the fourth quarter of 2018. The provision was $7.1 million for the year 2019, as compared to $6.8 million for the year 2018. |
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 22, 2020.
The webcast can be accessed through Renasant's investor relations website at www.renasant.com or https://services.choruscall.com/links/rnst200122.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2019 Fourth Quarter and Year-end 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 10138528 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 5, 2020.
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ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 115-year-old financial services institution. Renasant has assets of approximately $13.4 billion and operates more than 190 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 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”), tangible book value per share and the adjusted efficiency ratio. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and/or certain charges (such as, when applicable, merger and conversion expenses, debt prepayment penalties and asset valuation adjustments) with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof. 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 indicators 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 charges such as merger and conversion expenses 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
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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.
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RENASANT CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Q4 2019 - | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Q4 2018 | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | Percent | Percent | |||||||||||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Variance | 2019 | 2018 | Variance | |||||||||||||||||||||||||||||||||||||||
Statement of earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income - taxable equivalent basis | $ | 135,119 | $ | 135,927 | $ | 139,285 | $ | 138,578 | $ | 138,581 | $ | 119,236 | $ | 107,991 | $ | 101,947 | (2.50 | )% | $ | 548,909 | $ | 467,755 | 17.35 | % | ||||||||||||||||||||||||||
Interest income | $ | 133,148 | $ | 134,476 | $ | 137,862 | $ | 137,094 | $ | 137,105 | $ | 117,795 | $ | 106,574 | $ | 100,380 | (2.89 | ) | $ | 542,580 | $ | 461,854 | 17.48 | |||||||||||||||||||||||||||
Interest expense | 23,836 | 25,651 | 25,062 | 23,947 | 21,648 | 18,356 | 14,185 | 11,140 | 10.11 | 98,496 | 65,329 | 50.77 | ||||||||||||||||||||||||||||||||||||||
Net interest income | 109,312 | 108,825 | 112,800 | 113,147 | 115,457 | 99,439 | 92,389 | 89,240 | (5.32 | ) | 444,084 | 396,525 | 11.99 | |||||||||||||||||||||||||||||||||||||
Provision for loan losses | 2,950 | 1,700 | 900 | 1,500 | 1,000 | 2,250 | 1,810 | 1,750 | 195.00 | 7,050 | 6,810 | 3.52 | ||||||||||||||||||||||||||||||||||||||
Net interest income after provision | 106,362 | 107,125 | 111,900 | 111,647 | 114,457 | 97,189 | 90,579 | 87,490 | (7.07 | ) | 437,034 | 389,715 | 12.14 | |||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 9,273 | 8,992 | 8,605 | 9,102 | 9,069 | 8,847 | 8,271 | 8,473 | 2.25 | 35,972 | 34,660 | 3.79 | ||||||||||||||||||||||||||||||||||||||
Fees and commissions on loans and deposits | 2,822 | 3,090 | 7,047 | 6,471 | 6,322 | 5,944 | 5,917 | 5,685 | (55.36 | ) | 19,430 | 23,868 | (18.59 | ) | ||||||||||||||||||||||||||||||||||||
Insurance commissions and fees | 2,105 | 2,508 | 2,190 | 2,116 | 2,014 | 2,461 | 2,110 | 2,005 | 4.52 | 8,919 | 8,590 | 3.83 | ||||||||||||||||||||||||||||||||||||||
Wealth management revenue | 3,920 | 3,588 | 3,601 | 3,324 | 3,446 | 3,386 | 3,446 | 3,262 | 13.76 | 14,433 | 13,540 | 6.60 | ||||||||||||||||||||||||||||||||||||||
Securities gains (losses) | — | 343 | (8 | ) | 13 | — | (16 | ) | — | — | 100.00 | 348 | (16 | ) | 100.00 | |||||||||||||||||||||||||||||||||||
Mortgage banking income | 15,165 | 15,710 | 16,620 | 10,401 | 11,993 | 14,350 | 12,839 | 10,960 | 26.45 | 57,896 | 50,142 | 15.46 | ||||||||||||||||||||||||||||||||||||||
Other | 4,171 | 3,722 | 3,905 | 4,458 | 3,530 | 3,081 | 2,998 | 3,568 | 18.16 | 16,256 | 13,177 | 23.37 | ||||||||||||||||||||||||||||||||||||||
Total noninterest income | 37,456 | 37,953 | 41,960 | 35,885 | 36,374 | 38,053 | 35,581 | 33,953 | 2.97 | 153,254 | 143,961 | 6.46 | ||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 67,684 | 65,425 | 60,325 | 57,350 | 58,313 | 55,187 | 52,010 | 48,784 | 16.07 | 250,784 | 214,294 | 17.03 | ||||||||||||||||||||||||||||||||||||||
Data processing | 5,095 | 4,980 | 4,698 | 4,906 | 5,169 | 4,614 | 4,600 | 4,244 | (1.43 | ) | 19,679 | 18,627 | 5.65 | |||||||||||||||||||||||||||||||||||||
Occupancy and equipment | 13,231 | 12,943 | 11,544 | 11,835 | 11,816 | 10,668 | 9,805 | 9,822 | 11.98 | 49,553 | 42,111 | 17.67 | ||||||||||||||||||||||||||||||||||||||
Other real estate | 339 | 418 | 252 | 1,004 | 725 | 278 | 232 | 657 | (53.24 | ) | 2,013 | 1,892 | 6.40 | |||||||||||||||||||||||||||||||||||||
Amortization of intangibles | 1,946 | 1,996 | 2,053 | 2,110 | 2,169 | 1,765 | 1,594 | 1,651 | (10.28 | ) | 8,105 | 7,179 | 12.90 | |||||||||||||||||||||||||||||||||||||
Merger and conversion related expenses | 76 | 24 | 179 | — | 1,625 | 11,221 | 500 | 900 | (95.32 | ) | 279 | 14,246 | (98.04 | ) | ||||||||||||||||||||||||||||||||||||
Debt extinguishment penalty | — | 54 | — | — | — | — | — | — | 100.00 | 54 | — | 100.00 | ||||||||||||||||||||||||||||||||||||||
Other | 7,181 | 10,660 | 14,239 | 11,627 | 13,496 | 11,013 | 10,285 | 11,886 | (46.79 | ) | 43,707 | 46,680 | (6.37 | ) | ||||||||||||||||||||||||||||||||||||
Total noninterest expense | 95,552 | 96,500 | 93,290 | 88,832 | 93,313 | 94,746 | 79,026 | 77,944 | 2.40 | 374,174 | 345,029 | 8.45 | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | 48,266 | 48,578 | 60,570 | 58,700 | 57,518 | 40,496 | 47,134 | 43,499 | (16.09 | ) | 216,114 | 188,647 | 14.56 | |||||||||||||||||||||||||||||||||||||
Income taxes | 9,533 | 11,132 | 13,945 | 13,590 | 13,098 | 8,532 | 10,424 | 9,673 | (27.22 | ) | 48,200 | 41,727 | 15.51 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 38,733 | $ | 37,446 | $ | 46,625 | $ | 45,110 | $ | 44,420 | $ | 31,964 | $ | 36,710 | $ | 33,826 | (12.80 | ) | $ | 167,914 | $ | 146,920 | 14.29 | |||||||||||||||||||||||||||
Basic earnings per share | $ | 0.68 | $ | 0.65 | $ | 0.80 | $ | 0.77 | $ | 0.76 | $ | 0.61 | $ | 0.74 | $ | 0.69 | (10.53 | ) | $ | 2.89 | $ | 2.80 | 3.21 | |||||||||||||||||||||||||||
Diluted earnings per share | 0.67 | 0.64 | 0.80 | 0.77 | 0.76 | 0.61 | 0.74 | 0.68 | (11.84 | ) | 2.88 | 2.79 | 3.23 | |||||||||||||||||||||||||||||||||||||
Average basic shares outstanding | 57,153,160 | 58,003,215 | 58,461,024 | 58,585,517 | 58,623,646 | 52,472,971 | 49,413,754 | 49,356,417 | (2.51 | ) | 58,046,716 | 52,492,104 | 10.58 | |||||||||||||||||||||||||||||||||||||
Average diluted shares outstanding | 57,391,876 | 58,192,419 | 58,618,976 | 58,730,535 | 58,767,519 | 52,609,902 | 49,549,761 | 49,502,950 | (2.34 | ) | 58,226,686 | 52,626,850 | 10.64 | |||||||||||||||||||||||||||||||||||||
Common shares outstanding | 56,855,002 | 57,455,306 | 58,297,670 | 58,633,630 | 58,546,480 | 58,743,814 | 49,424,339 | 49,392,978 | (2.89 | ) | 56,855,002 | 58,546,480 | (2.89 | ) | ||||||||||||||||||||||||||||||||||||
Cash dividend per common share | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.21 | $ | 0.21 | $ | 0.20 | $ | 0.20 | $ | 0.19 | 4.76 | $ | 0.87 | $ | 0.80 | 8.75 | ||||||||||||||||||||||||||||
Performance ratios | ||||||||||||||||||||||||||||||||||||||||||||||||||
Return on avg shareholders' equity | 7.21 | % | 6.97 | % | 8.90 | % | 8.86 | % | 8.72 | % | 7.40 | % | 9.55 | % | 9.00 | % | 7.97 | % | 8.64 | % | ||||||||||||||||||||||||||||||
Return on avg tangible s/h's equity (non-GAAP) (1) | 13.86 | % | 13.38 | % | 17.15 | % | 17.41 | % | 17.44 | % | 13.65 | % | 16.75 | % | 16.02 | % | 15.39 | % | 15.98 | % | ||||||||||||||||||||||||||||||
Return on avg assets | 1.17 | % | 1.16 | % | 1.47 | % | 1.44 | % | 1.39 | % | 1.12 | % | 1.42 | % | 1.36 | % | 1.30 | % | 1.32 | % | ||||||||||||||||||||||||||||||
Return on avg tangible assets (non-GAAP)(2) | 1.31 | % | 1.30 | % | 1.64 | % | 1.61 | % | 1.56 | % | 1.26 | % | 1.57 | % | 1.51 | % | 1.46 | % | 1.47 | % | ||||||||||||||||||||||||||||||
Net interest margin (FTE) | 3.90 | % | 3.98 | % | 4.19 | % | 4.27 | % | 4.24 | % | 4.07 | % | 4.15 | % | 4.20 | % | 4.08 | % | 4.16 | % | ||||||||||||||||||||||||||||||
Yield on earning assets (FTE) | 4.74 | % | 4.91 | % | 5.11 | % | 5.16 | % | 5.02 | % | 4.81 | % | 4.78 | % | 4.72 | % | 4.98 | % | 4.84 | % | ||||||||||||||||||||||||||||||
Cost of funding | 0.87 | % | 0.97 | % | 0.96 | % | 0.92 | % | 0.81 | % | 0.77 | % | 0.65 | % | 0.53 | % | 0.93 | % | 0.70 | % | ||||||||||||||||||||||||||||||
Average earning assets to average assets | 85.71 | % | 85.58 | % | 85.72 | % | 85.58 | % | 86.15 | % | 87.29 | % | 87.67 | % | 87.12 | % | 85.65 | % | 87.01 | % | ||||||||||||||||||||||||||||||
Average loans to average deposits | 92.43 | % | 89.13 | % | 89.13 | % | 89.33 | % | 89.77 | % | 91.74 | % | 91.84 | % | 94.04 | % | 90.01 | % | 91.71 | % | ||||||||||||||||||||||||||||||
Noninterest income (less securities gains/ | ||||||||||||||||||||||||||||||||||||||||||||||||||
losses) to average assets | 1.13 | % | 1.16 | % | 1.32 | % | 1.14 | % | 1.14 | % | 1.34 | % | 1.38 | % | 1.37 | % | 1.19 | % | 1.30 | % | ||||||||||||||||||||||||||||||
Noninterest expense (less debt prepayment penalties/ | ||||||||||||||||||||||||||||||||||||||||||||||||||
penalties/merger-related expenses) to | ||||||||||||||||||||||||||||||||||||||||||||||||||
average assets | 2.88 | % | 2.98 | % | 2.93 | % | 2.83 | % | 2.86 | % | 2.94 | % | 3.05 | % | 3.11 | % | 2.90 | % | 2.98 | % | ||||||||||||||||||||||||||||||
Net overhead ratio | 1.75 | % | 1.82 | % | 1.61 | % | 1.69 | % | 1.72 | % | 1.60 | % | 1.67 | % | 1.74 | % | 1.71 | % | 1.68 | % | ||||||||||||||||||||||||||||||
Efficiency ratio (FTE) | 64.24 | % | 65.10 | % | 59.73 | % | 59.02 | % | 60.87 | % | 68.20 | % | 61.08 | % | 62.48 | % | 61.98 | % | 63.15 | % | ||||||||||||||||||||||||||||||
Adjusted efficiency ratio (FTE) (non-GAAP) (4) | 63.43 | % | 62.53 | % | 58.30 | % | 57.62 | % | 58.39 | % | 58.84 | % | 59.46 | % | 60.43 | % | 60.44 | % | 59.22 | % | ||||||||||||||||||||||||||||||
12
RENASANT CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Q4 2019 - | As of | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Q4 2018 | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | Percent | Percent | |||||||||||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Variance | 2019 | 2018 | Variance | |||||||||||||||||||||||||||||||||||||||
Average Balances | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 13,157,843 | $ | 12,846,131 | $ | 12,764,669 | $ | 12,730,939 | $ | 12,713,000 | $ | 11,276,587 | $ | 10,341,863 | $ | 10,055,755 | 3.50 | % | $ | 12,875,986 | $ | 11,104,567 | 15.95 | % | ||||||||||||||||||||||||||
Earning assets | 11,277,000 | 10,993,645 | 10,942,492 | 10,895,205 | 10,952,023 | 9,843,870 | 9,067,016 | 8,760,679 | 2.97 | 11,028,040 | 9,662,416 | 14.13 | ||||||||||||||||||||||||||||||||||||||
Securities | 1,234,718 | 1,227,678 | 1,262,271 | 1,253,224 | 1,240,283 | 1,129,010 | 1,039,947 | 833,076 | (0.45 | ) | 1,244,376 | 1,061,882 | 17.19 | |||||||||||||||||||||||||||||||||||||
Loans held for sale | 350,783 | 385,437 | 353,103 | 345,264 | 418,213 | 297,692 | 209,652 | 152,299 | (16.12 | ) | 358,735 | 270,270 | 32.73 | |||||||||||||||||||||||||||||||||||||
Loans, net of unearned | 9,457,658 | 9,109,252 | 9,043,788 | 9,059,802 | 9,130,273 | 8,228,053 | 7,704,221 | 7,646,991 | 3.59 | 9,168,555 | 8,181,587 | 12.06 | ||||||||||||||||||||||||||||||||||||||
Intangibles | 977,506 | 975,306 | 974,628 | 976,820 | 972,736 | 743,567 | 633,155 | 634,898 | 0.49 | 976,065 | 747,008 | 30.66 | ||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 2,611,265 | 2,500,810 | 2,395,899 | 2,342,406 | 2,402,422 | 2,052,226 | 1,867,925 | 1,817,848 | 8.69 | 2,463,436 | 2,036,754 | 20.95 | ||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 7,620,602 | 7,719,510 | 7,750,986 | 7,799,892 | 7,768,724 | 6,916,699 | 6,521,123 | 6,314,114 | (1.91 | ) | 7,722,247 | 6,884,250 | 12.17 | |||||||||||||||||||||||||||||||||||||
Total deposits | 10,231,867 | 10,220,320 | 10,146,885 | 10,142,298 | 10,171,146 | 8,968,925 | 8,389,048 | 8,131,962 | 0.60 | 10,185,683 | 8,921,004 | 14.18 | ||||||||||||||||||||||||||||||||||||||
Borrowed funds | 596,101 | 308,931 | 354,234 | 363,140 | 407,496 | 499,054 | 329,287 | 314,228 | 46.28 | 405,975 | 388,077 | 4.61 | ||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 2,131,345 | 2,131,537 | 2,102,093 | 2,065,370 | 2,021,075 | 1,712,757 | 1,542,071 | 1,523,873 | 5.46 | 2,107,832 | 1,701,334 | 23.89 | ||||||||||||||||||||||||||||||||||||||
Q4 2019 - | As of | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Q4 2018 | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | Percent | Percent | |||||||||||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Variance | 2019 | 2018 | Variance | |||||||||||||||||||||||||||||||||||||||
Balances at period end | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 13,400,510 | $ | 13,039,674 | $ | 12,892,653 | $ | 12,862,395 | $ | 12,934,878 | $ | 12,746,939 | $ | 10,544,475 | $ | 10,238,313 | 3.60 | % | $ | 13,400,510 | $ | 12,934,878 | 3.60 | % | ||||||||||||||||||||||||||
Earning assets | 11,522,388 | 11,145,052 | 11,064,957 | 11,015,535 | 11,115,929 | 10,962,958 | 9,239,200 | 8,938,117 | 3.66 | 11,522,388 | 11,115,929 | 3.66 | ||||||||||||||||||||||||||||||||||||||
Securities | 1,290,613 | 1,238,577 | 1,268,280 | 1,255,353 | 1,250,777 | 1,177,606 | 1,088,779 | 948,365 | 3.18 | 1,290,613 | 1,250,777 | 3.18 | ||||||||||||||||||||||||||||||||||||||
Loans held for sale | 318,272 | 392,448 | 461,681 | 318,563 | 411,427 | 463,287 | 245,046 | 204,472 | (22.64 | ) | 318,272 | 411,427 | (22.64 | ) | ||||||||||||||||||||||||||||||||||||
Non purchased loans | 7,587,974 | 7,031,818 | 6,704,288 | 6,565,599 | 6,389,712 | 6,210,238 | 6,057,766 | 5,830,122 | 18.75 | 7,587,974 | 6,389,712 | 18.75 | ||||||||||||||||||||||||||||||||||||||
Purchased loans | 2,101,664 | 2,281,966 | 2,350,366 | 2,522,694 | 2,693,417 | 2,912,669 | 1,709,891 | 1,867,948 | (21.97 | ) | 2,101,664 | 2,693,417 | (21.97 | ) | ||||||||||||||||||||||||||||||||||||
Total loans | 9,689,638 | 9,313,784 | 9,054,654 | 9,088,293 | 9,083,129 | 9,122,907 | 7,767,657 | 7,698,070 | 6.68 | 9,689,638 | 9,083,129 | 6.68 | ||||||||||||||||||||||||||||||||||||||
Intangibles | 976,943 | 978,390 | 973,673 | 975,726 | 977,793 | 974,115 | 632,311 | 633,905 | (0.09 | ) | 976,943 | 977,793 | (0.09 | ) | ||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 2,551,771 | 2,607,056 | 2,408,984 | 2,366,223 | 2,318,706 | 2,359,859 | 1,888,561 | 1,861,136 | 10.05 | 2,551,771 | 2,318,706 | 10.05 | ||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 7,661,398 | 7,678,980 | 7,781,077 | 7,902,689 | 7,809,851 | 7,812,089 | 6,492,159 | 6,496,633 | (1.90 | ) | 7,661,398 | 7,809,851 | (1.90 | ) | ||||||||||||||||||||||||||||||||||||
Total deposits | 10,213,169 | 10,286,036 | 10,190,061 | 10,268,912 | 10,128,557 | 10,171,948 | 8,380,720 | 8,357,769 | 0.84 | 10,213,169 | 10,128,557 | 0.84 | ||||||||||||||||||||||||||||||||||||||
Borrowed funds | 865,598 | 433,705 | 401,934 | 350,859 | 651,324 | 439,516 | 520,747 | 265,191 | 32.90 | 865,598 | 651,324 | 32.90 | ||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 2,126,008 | 2,119,659 | 2,119,696 | 2,088,877 | 2,043,913 | 2,010,711 | 1,558,668 | 1,532,765 | 4.02 | 2,126,008 | 2,043,913 | 4.02 | ||||||||||||||||||||||||||||||||||||||
Market value per common share | 35.42 | 35.01 | 35.94 | 33.85 | 30.18 | 41.21 | 45.52 | 42.56 | 17.36 | 35.42 | 30.18 | 17.36 | ||||||||||||||||||||||||||||||||||||||
Book value per common share | 37.39 | 36.89 | 36.36 | 35.63 | 34.91 | 34.23 | 31.54 | 31.03 | 7.10 | 37.39 | 34.91 | 7.10 | ||||||||||||||||||||||||||||||||||||||
Tangible book value per common share | 20.21 | 19.86 | 19.66 | 18.98 | 18.21 | 17.65 | 18.74 | 18.20 | 10.98 | 20.21 | 18.21 | 10.98 | ||||||||||||||||||||||||||||||||||||||
Shareholders' equity to assets (actual) | 15.87 | % | 16.26 | % | 16.44 | % | 16.24 | % | 15.80 | % | 15.77 | % | 14.78 | % | 14.97 | % | 15.87 | % | 15.80 | % | ||||||||||||||||||||||||||||||
Tangible capital ratio (non-GAAP)(3) | 9.25 | % | 9.46 | % | 9.62 | % | 9.36 | % | 8.92 | % | 8.80 | % | 9.35 | % | 9.36 | % | 9.25 | % | 8.92 | % | ||||||||||||||||||||||||||||||
Leverage ratio | 10.37 | % | 10.56 | % | 10.65 | % | 10.44 | % | 10.11 | % | 9.85 | % | 10.63 | % | 10.61 | % | 10.37 | % | 10.11 | % | ||||||||||||||||||||||||||||||
Common equity tier 1 capital ratio | 11.12 | % | 11.36 | % | 11.64 | % | 11.49 | % | 11.05 | % | 10.80 | % | 11.71 | % | 11.38 | % | 11.12 | % | 11.05 | % | ||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio | 12.14 | % | 12.40 | % | 12.69 | % | 12.55 | % | 12.10 | % | 11.84 | % | 12.73 | % | 12.41 | % | 12.14 | % | 12.10 | % | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | 13.78 | % | 14.07 | % | 14.62 | % | 14.57 | % | 14.12 | % | 13.85 | % | 14.75 | % | 14.44 | % | 13.78 | % | 14.12 | % | ||||||||||||||||||||||||||||||
13
RENASANT CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Q4 2019 - | As of | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Q4 2018 | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | Percent | Percent | |||||||||||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Variance | 2019 | 2018 | Variance | |||||||||||||||||||||||||||||||||||||||
Non purchased loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial, agricultural | $ | 1,052,353 | $ | 988,867 | $ | 930,598 | $ | 921,081 | $ | 875,649 | $ | 817,799 | $ | 790,363 | $ | 803,146 | 20.18 | % | $ | 1,052,353 | $ | 875,649 | 20.18 | % | ||||||||||||||||||||||||||
Lease financing | 81,875 | 69,953 | 59,158 | 58,651 | 61,865 | 54,272 | 52,423 | 52,536 | 32.34 | 81,875 | 61,865 | 32.34 | ||||||||||||||||||||||||||||||||||||||
Real estate- construction | 774,901 | 764,589 | 716,129 | 651,119 | 635,519 | 624,892 | 642,380 | 582,430 | 21.93 | 774,901 | 635,519 | 21.93 | ||||||||||||||||||||||||||||||||||||||
Real estate - 1-4 family mortgages | 2,350,126 | 2,235,908 | 2,160,617 | 2,114,908 | 2,087,890 | 2,000,770 | 1,912,450 | 1,785,271 | 12.56 | 2,350,126 | 2,087,890 | 12.56 | ||||||||||||||||||||||||||||||||||||||
Real estate - commercial mortgages | 3,128,876 | 2,809,470 | 2,741,402 | 2,726,186 | 2,628,365 | 2,609,510 | 2,554,955 | 2,503,680 | 19.04 | 3,128,876 | 2,628,365 | 19.04 | ||||||||||||||||||||||||||||||||||||||
Installment loans to individuals | 199,843 | 163,031 | 96,384 | 93,654 | 100,424 | 102,995 | 105,195 | 103,059 | 99.00 | 199,843 | 100,424 | 99.00 | ||||||||||||||||||||||||||||||||||||||
Loans, net of unearned | $ | 7,587,974 | $ | 7,031,818 | $ | 6,704,288 | $ | 6,565,599 | $ | 6,389,712 | $ | 6,210,238 | $ | 6,057,766 | $ | 5,830,122 | 18.75 | $ | 7,587,974 | $ | 6,389,712 | 18.75 | ||||||||||||||||||||||||||||
Purchased loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial, agricultural | $ | 315,619 | $ | 339,693 | $ | 374,478 | $ | 387,376 | $ | 420,263 | $ | 495,545 | $ | 197,455 | $ | 243,672 | (24.90 | ) | $ | 315,619 | $ | 420,263 | (24.90 | ) | ||||||||||||||||||||||||||
Lease financing | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Real estate- construction | 51,582 | 52,106 | 65,402 | 89,954 | 105,149 | 112,093 | 70,438 | 75,061 | (50.94 | ) | 51,582 | 105,149 | (50.94 | ) | ||||||||||||||||||||||||||||||||||||
Real estate - 1-4 family mortgages | 516,487 | 561,725 | 604,855 | 654,265 | 707,453 | 761,913 | 520,649 | 572,830 | (26.99 | ) | 516,487 | 707,453 | (26.99 | ) | ||||||||||||||||||||||||||||||||||||
Real estate - commercial mortgages | 1,115,389 | 1,212,905 | 1,276,567 | 1,357,446 | 1,423,144 | 1,503,075 | 906,219 | 960,273 | (21.63 | ) | 1,115,389 | 1,423,144 | (21.63 | ) | ||||||||||||||||||||||||||||||||||||
Installment loans to individuals | 102,587 | 115,537 | 29,064 | 33,653 | 37,408 | 40,043 | 15,130 | 16,112 | 174.24 | 102,587 | 37,408 | 174.24 | ||||||||||||||||||||||||||||||||||||||
Loans, net of unearned | $ | 2,101,664 | $ | 2,281,966 | $ | 2,350,366 | $ | 2,522,694 | $ | 2,693,417 | $ | 2,912,669 | $ | 1,709,891 | $ | 1,867,948 | (21.97 | ) | $ | 2,101,664 | $ | 2,693,417 | (21.97 | ) | ||||||||||||||||||||||||||
Asset quality data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non purchased assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 21,509 | $ | 15,733 | $ | 14,268 | $ | 12,507 | $ | 10,218 | $ | 9,696 | $ | 8,921 | $ | 9,403 | 110.50 | $ | 21,509 | $ | 10,218 | 110.50 | ||||||||||||||||||||||||||||
Loans 90 past due or more | 3,458 | 7,325 | 4,175 | 1,192 | 2,685 | 3,806 | 2,190 | 3,605 | 28.79 | 3,458 | 2,685 | 28.79 | ||||||||||||||||||||||||||||||||||||||
Nonperforming loans | 24,967 | 23,058 | 18,443 | 13,699 | 12,903 | 13,502 | 11,111 | 13,008 | 93.50 | 24,967 | 12,903 | 93.50 | ||||||||||||||||||||||||||||||||||||||
Other real estate owned | 2,762 | 1,975 | 3,475 | 4,223 | 4,853 | 4,665 | 4,698 | 4,801 | (43.09 | ) | 2,762 | 4,853 | (43.09 | ) | ||||||||||||||||||||||||||||||||||||
Nonperforming assets | $ | 27,729 | $ | 25,033 | $ | 21,918 | $ | 17,922 | $ | 17,756 | $ | 18,167 | $ | 15,809 | $ | 17,809 | 56.17 | $ | 27,729 | $ | 17,756 | 56.17 | ||||||||||||||||||||||||||||
Purchased assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 7,038 | $ | 6,123 | $ | 7,250 | $ | 7,828 | $ | 5,836 | $ | 4,809 | $ | 4,561 | $ | 5,340 | 20.60 | $ | 7,038 | $ | 5,836 | 20.60 | ||||||||||||||||||||||||||||
Loans 90 past due or more | 4,317 | 7,034 | 7,687 | 5,436 | 7,232 | 7,960 | 5,491 | 4,564 | (40.31 | ) | 4,317 | 7,232 | (40.31 | ) | ||||||||||||||||||||||||||||||||||||
Nonperforming loans | 11,355 | 13,157 | 14,937 | 13,264 | 13,068 | 12,769 | 10,052 | 9,904 | (13.11 | ) | 11,355 | 13,068 | (13.11 | ) | ||||||||||||||||||||||||||||||||||||
Other real estate owned | 5,248 | 6,216 | 5,258 | 5,932 | 6,187 | 7,932 | 9,006 | 9,754 | (15.18 | ) | 5,248 | 6,187 | (15.18 | ) | ||||||||||||||||||||||||||||||||||||
Nonperforming assets | $ | 16,603 | $ | 19,373 | $ | 20,195 | $ | 19,196 | $ | 19,255 | $ | 20,701 | $ | 19,058 | $ | 19,658 | (13.77 | ) | $ | 16,603 | $ | 19,255 | (13.77 | ) | ||||||||||||||||||||||||||
Net loan charge-offs (recoveries) | $ | 1,602 | $ | 945 | $ | 676 | $ | 691 | $ | 584 | $ | 995 | $ | 856 | $ | 1,560 | 174.32 | $ | 3,914 | $ | 3,995 | (2.03 | ) | |||||||||||||||||||||||||||
Allowance for loan losses | $ | 52,162 | $ | 50,814 | $ | 50,059 | $ | 49,835 | $ | 49,026 | $ | 48,610 | $ | 47,355 | $ | 46,401 | 6.40 | $ | 52,162 | $ | 49,026 | 6.40 | ||||||||||||||||||||||||||||
Annualized net loan charge-offs / average loans | 0.07 | % | 0.04 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.05 | % | 0.04 | % | 0.08 | % | 0.04 | % | 0.05 | % | ||||||||||||||||||||||||||||||
Nonperforming loans / total loans* | 0.37 | % | 0.39 | % | 0.37 | % | 0.30 | % | 0.29 | % | 0.29 | % | 0.27 | % | 0.30 | % | 0.37 | % | 0.29 | % | ||||||||||||||||||||||||||||||
Nonperforming assets / total assets* | 0.33 | % | 0.34 | % | 0.33 | % | 0.29 | % | 0.29 | % | 0.30 | % | 0.33 | % | 0.37 | % | 0.33 | % | 0.29 | % | ||||||||||||||||||||||||||||||
Allowance for loan losses / total loans* | 0.54 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.54 | % | 0.53 | % | 0.61 | % | 0.60 | % | 0.54 | % | 0.54 | % | ||||||||||||||||||||||||||||||
Allowance for loan losses / nonperforming loans* | 143.61 | % | 140.31 | % | 149.97 | % | 184.83 | % | 188.77 | % | 185.03 | % | 223.76 | % | 202.52 | % | 143.61 | % | 188.77 | % | ||||||||||||||||||||||||||||||
Nonperforming loans / total loans** | 0.33 | % | 0.33 | % | 0.28 | % | 0.21 | % | 0.20 | % | 0.22 | % | 0.18 | % | 0.22 | % | 0.33 | % | 0.20 | % | ||||||||||||||||||||||||||||||
Nonperforming assets / total assets** | 0.21 | % | 0.19 | % | 0.17 | % | 0.14 | % | 0.14 | % | 0.14 | % | 0.15 | % | 0.17 | % | 0.21 | % | 0.14 | % | ||||||||||||||||||||||||||||||
Allowance for loan losses / total loans** | 0.69 | % | 0.72 | % | 0.75 | % | 0.76 | % | 0.77 | % | 0.78 | % | 0.78 | % | 0.80 | % | 0.69 | % | 0.77 | % | ||||||||||||||||||||||||||||||
Allowance for loan losses / nonperforming loans** | 208.92 | % | 220.37 | % | 271.43 | % | 363.79 | % | 379.96 | % | 360.02 | % | 426.20 | % | 356.71 | % | 208.92 | % | 379.96 | % | ||||||||||||||||||||||||||||||
*Based on all assets (includes purchased assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||
**Excludes all purchased assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
14
RENASANT CORPORATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ending | Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non purchased | $ | 7,258,517 | $ | 87,482 | 4.76 | % | $ | 6,792,021 | $ | 85,084 | 4.97 | % | $ | 6,318,434 | $ | 78,633 | 4.94 | % | $ | 6,784,132 | $ | 337,672 | 4.98 | % | $ | 6,019,177 | $ | 286,643 | 4.76 | % | |||||||||||||||||||||||||
Purchased | 2,199,141 | 34,270 | 6.18 | % | 2,317,231 | 36,330 | 6.22 | % | 2,811,839 | 44,070 | 6.22 | % | 2,384,423 | 149,568 | 6.27 | % | 2,162,410 | 132,199 | 6.11 | % | |||||||||||||||||||||||||||||||||||
Total loans | 9,457,658 | 121,752 | 5.09 | % | 9,109,252 | 121,414 | 5.29 | % | 9,130,273 | 122,703 | 5.33 | % | 9,168,555 | 487,240 | 5.31 | % | 8,181,587 | 418,842 | 5.12 | % | |||||||||||||||||||||||||||||||||||
Loans held for sale | 350,783 | 3,167 | 3.58 | % | 385,437 | 3,977 | 4.09 | % | 418,213 | 5,177 | 4.91 | % | 358,735 | 18,171 | 5.07 | % | 270,270 | 12,892 | 4.77 | % | |||||||||||||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable(1) | 1,018,076 | 6,994 | 2.73 | % | 1,040,302 | 7,200 | 2.75 | % | 1,033,288 | 7,587 | 2.91 | % | 1,051,124 | 29,786 | 2.83 | % | 844,692 | 23,713 | 2.81 | % | |||||||||||||||||||||||||||||||||||
Tax-exempt | 216,642 | 2,093 | 3.83 | % | 187,376 | 1,846 | 3.91 | % | 206,996 | 2,184 | 4.19 | % | 193,252 | 7,821 | 4.05 | % | 217,190 | 9,232 | 4.25 | % | |||||||||||||||||||||||||||||||||||
Total securities | 1,234,718 | 9,087 | 2.92 | % | 1,227,678 | 9,046 | 2.92 | % | 1,240,284 | 9,771 | 3.13 | % | 1,244,376 | 37,607 | 3.02 | % | 1,061,882 | 32,945 | 3.10 | % | |||||||||||||||||||||||||||||||||||
Interest-bearing balances with banks | 233,841 | 1,113 | 1.89 | % | 271,278 | 1,490 | 2.18 | % | 163,254 | 930 | 2.26 | % | 256,374 | 5,891 | 2.30 | % | 148,677 | 3,076 | 2.07 | % | |||||||||||||||||||||||||||||||||||
Total interest-earning assets | 11,277,000 | 135,119 | 4.74 | % | 10,993,645 | 135,927 | 4.91 | % | 10,952,024 | 138,581 | 5.02 | % | 11,028,040 | 548,909 | 4.98 | % | 9,662,416 | 467,755 | 4.84 | % | |||||||||||||||||||||||||||||||||||
Cash and due from banks | 176,582 | 173,156 | 177,601 | 179,991 | 163,286 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets | 977,506 | 975,306 | 972,736 | 976,065 | 747,008 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 726,755 | 704,024 | 610,639 | 691,890 | 531,857 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 13,157,843 | $ | 12,846,131 | $ | 12,713,000 | $ | 12,875,986 | $ | 11,104,567 | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand(2) | $ | 4,749,018 | $ | 9,226 | 0.77 | % | $ | 4,740,426 | $ | 10,769 | 0.90 | % | $ | 4,748,320 | $ | 8,201 | 0.69 | % | $ | 4,754,201 | $ | 40,564 | 0.85 | % | $ | 4,246,585 | $ | 23,678 | 0.56 | % | |||||||||||||||||||||||||
Savings deposits | 661,362 | 282 | 0.17 | % | 652,121 | 355 | 0.22 | % | 615,812 | 256 | 0.16 | % | 647,271 | 1,258 | 0.19 | % | 596,990 | 868 | 0.15 | % | |||||||||||||||||||||||||||||||||||
Time deposits | 2,210,222 | 9,783 | 1.76 | % | 2,326,963 | 10,390 | 1.77 | % | 2,404,592 | 8,769 | 1.45 | % | 2,320,775 | 39,746 | 1.71 | % | 2,040,675 | 25,214 | 1.24 | % | |||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 7,620,602 | 19,291 | 1.00 | % | 7,719,510 | 21,514 | 1.11 | % | 7,768,724 | 17,226 | 0.88 | % | 7,722,247 | 81,568 | 1.06 | % | 6,884,250 | 49,760 | 0.72 | % | |||||||||||||||||||||||||||||||||||
Borrowed funds | 596,101 | 4,545 | 3.02 | % | 308,931 | 4,137 | 5.31 | % | 407,496 | 4,422 | 4.31 | % | 405,975 | 16,928 | 4.17 | % | 388,077 | 15,569 | 4.01 | % | |||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 8,216,703 | 23,836 | 1.15 | % | 8,028,441 | 25,651 | 1.27 | % | 8,176,220 | 21,648 | 1.05 | % | 8,128,222 | 98,496 | 1.21 | % | 7,272,327 | 65,329 | 0.90 | % | |||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 2,611,265 | 2,500,810 | 2,402,422 | 2,463,436 | 2,036,754 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 198,530 | 185,343 | 113,283 | 176,496 | 94,152 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 2,131,345 | 2,131,537 | 2,021,075 | 2,107,832 | 1,701,334 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 13,157,843 | $ | 12,846,131 | $ | 12,713,000 | $ | 12,875,986 | $ | 11,104,567 | |||||||||||||||||||||||||||||||||||||||||||||
Net interest income/ net interest margin | $ | 111,283 | 3.90 | % | $ | 110,276 | 3.98 | % | $ | 116,933 | 4.24 | % | $ | 450,413 | 4.08 | % | $ | 402,426 | 4.16 | % | |||||||||||||||||||||||||||||||||||
Cost of funding | 0.87 | % | 0.97 | % | 0.81 | % | 0.93 | % | 0.70 | % | |||||||||||||||||||||||||||||||||||||||||||||
Cost of total deposits | 0.75 | % | 0.84 | % | 0.67 | % | 0.80 | % | 0.56 | % | |||||||||||||||||||||||||||||||||||||||||||||
(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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
15
RENASANT CORPORATION | |||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP | |||||||||||||||||||||||||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | December 31, | |||||||||||||||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
Net income (GAAP) | $ | 38,733 | $ | 37,446 | $ | 46,625 | $ | 45,110 | $ | 44,420 | $ | 31,964 | $ | 36,710 | $ | 33,826 | $ | 167,914 | $ | 146,920 | |||||||||||||||||||||||||||
Amortization of intangibles | 1,946 | 1,996 | 2,053 | 2,110 | 2,169 | 1,765 | 1,594 | 1,651 | 8,105 | 7,179 | |||||||||||||||||||||||||||||||||||||
Tax effect of adjustment noted above (A) | (384 | ) | (457 | ) | (473 | ) | (488 | ) | (494 | ) | (372 | ) | (353 | ) | (367 | ) | (1,808 | ) | (1,588 | ) | |||||||||||||||||||||||||||
Tangible net income (non-GAAP) | $ | 40,295 | $ | 38,985 | $ | 48,205 | $ | 46,732 | $ | 46,095 | $ | 33,357 | $ | 37,951 | $ | 35,110 | $ | 174,211 | $ | 152,511 | |||||||||||||||||||||||||||
Net income (GAAP) | $ | 38,733 | $ | 37,446 | $ | 46,625 | $ | 45,110 | $ | 44,420 | $ | 31,964 | $ | 36,710 | $ | 33,826 | $ | 167,914 | $ | 146,920 | |||||||||||||||||||||||||||
Merger & conversion expenses | 76 | 24 | 179 | — | 1,625 | 11,221 | 500 | 900 | 279 | 14,246 | |||||||||||||||||||||||||||||||||||||
Debt prepayment penalties | — | 54 | — | — | — | — | — | — | 54 | — | |||||||||||||||||||||||||||||||||||||
MSR valuation adjustment | (1,296 | ) | 3,132 | — | — | — | — | — | — | 1,836 | — | ||||||||||||||||||||||||||||||||||||
Tax effect of adjustment noted above (A) | 241 | (736 | ) | (41 | ) | — | (370 | ) | (2,364 | ) | (111 | ) | (200 | ) | (484 | ) | (3,151 | ) | |||||||||||||||||||||||||||||
Net income with exclusions (non-GAAP) | $ | 37,754 | $ | 39,920 | $ | 46,763 | $ | 45,110 | $ | 45,675 | $ | 40,821 | $ | 37,099 | $ | 34,526 | $ | 169,599 | $ | 158,015 | |||||||||||||||||||||||||||
Average shareholders' equity (GAAP) | $ | 2,131,345 | $ | 2,131,537 | $ | 2,102,093 | $ | 2,065,370 | $ | 2,021,075 | $ | 1,712,757 | $ | 1,542,071 | $ | 1,523,873 | $ | 2,107,832 | $ | 1,701,334 | |||||||||||||||||||||||||||
Intangibles | 977,506 | 975,306 | 974,628 | 976,820 | 972,736 | 743,567 | 633,155 | 634,898 | 976,065 | 747,008 | |||||||||||||||||||||||||||||||||||||
Average tangible s/h's equity (non-GAAP) | $ | 1,153,839 | $ | 1,156,231 | $ | 1,127,465 | $ | 1,088,550 | $ | 1,048,339 | $ | 969,190 | $ | 908,916 | $ | 888,975 | $ | 1,131,767 | $ | 954,326 | |||||||||||||||||||||||||||
Average total assets (GAAP) | $ | 13,157,843 | $ | 12,846,131 | $ | 12,764,669 | $ | 12,730,939 | $ | 12,713,000 | $ | 11,276,587 | $ | 10,341,863 | $ | 10,055,755 | $ | 12,875,986 | $ | 11,104,567 | |||||||||||||||||||||||||||
Intangibles | 977,506 | 975,306 | 974,628 | 976,820 | 972,736 | 743,567 | 633,155 | 634,898 | 976,065 | 747,008 | |||||||||||||||||||||||||||||||||||||
Average tangible assets (non-GAAP) | $ | 12,180,337 | $ | 11,870,825 | $ | 11,790,041 | $ | 11,754,119 | $ | 11,740,264 | $ | 10,533,020 | $ | 9,708,708 | $ | 9,420,857 | $ | 11,899,921 | $ | 10,357,559 | |||||||||||||||||||||||||||
Actual shareholders' equity (GAAP) | $ | 2,126,008 | $ | 2,119,659 | $ | 2,119,696 | $ | 2,088,877 | $ | 2,043,913 | $ | 2,010,711 | $ | 1,558,668 | $ | 1,532,765 | $ | 2,126,008 | $ | 2,043,913 | |||||||||||||||||||||||||||
Intangibles | 976,943 | 978,390 | 973,673 | 975,726 | 977,793 | 974,115 | 632,311 | 633,905 | 976,943 | 977,793 | |||||||||||||||||||||||||||||||||||||
Actual tangible s/h's equity (non-GAAP) | $ | 1,149,065 | $ | 1,141,269 | $ | 1,146,023 | $ | 1,113,151 | $ | 1,066,120 | $ | 1,036,596 | $ | 926,357 | $ | 898,860 | $ | 1,149,065 | $ | 1,066,120 | |||||||||||||||||||||||||||
Actual total assets (GAAP) | $ | 13,400,510 | $ | 13,039,674 | $ | 12,892,653 | $ | 12,862,395 | $ | 12,934,878 | $ | 12,746,939 | $ | 10,544,475 | $ | 10,238,313 | $ | 13,400,510 | $ | 12,934,878 | |||||||||||||||||||||||||||
Intangibles | 976,943 | 978,390 | 973,673 | 975,726 | 977,793 | 974,115 | 632,311 | 633,905 | 976,943 | 977,793 | |||||||||||||||||||||||||||||||||||||
Actual tangible assets (non-GAAP) | $ | 12,423,567 | $ | 12,061,284 | $ | 11,918,980 | $ | 11,886,669 | $ | 11,957,085 | $ | 11,772,824 | $ | 9,912,164 | $ | 9,604,408 | $ | 12,423,567 | $ | 11,957,085 | |||||||||||||||||||||||||||
(A) Tax effect is calculated based on respective periods effective tax rate. | |||||||||||||||||||||||||||||||||||||||||||||||
16
RENASANT CORPORATION | |||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP | |||||||||||||||||||||||||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | December 31, | |||||||||||||||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
(1) Return on Average Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Return on avg s/h's equity (GAAP) | 7.21 | % | 6.97 | % | 8.90 | % | 8.86 | % | 8.72 | % | 7.40 | % | 9.55 | % | 9.00 | % | 7.97 | % | 8.64 | % | |||||||||||||||||||||||||||
Effect of adjustment for intangible assets | 6.65 | % | 6.41 | % | 8.25 | % | 8.55 | % | 8.72 | % | 6.25 | % | 7.20 | % | 7.02 | % | 7.42 | % | 7.34 | % | |||||||||||||||||||||||||||
Return on avg tangible s/h's equity (non-GAAP) | 13.86 | % | 13.38 | % | 17.15 | % | 17.41 | % | 17.44 | % | 13.65 | % | 16.75 | % | 16.02 | % | 15.39 | % | 15.98 | % | |||||||||||||||||||||||||||
Return on avg s/h's equity (GAAP) | 7.21 | % | 6.97 | % | 8.90 | % | 8.86 | % | 8.72 | % | 7.40 | % | 9.55 | % | 9.00 | % | 7.97 | % | 8.64 | % | |||||||||||||||||||||||||||
Effect of exclusions from net income | (0.18 | )% | 0.46 | % | 0.02 | % | — | % | 0.25 | % | 2.06 | % | 0.10 | % | 0.19 | % | 0.08 | % | 0.65 | % | |||||||||||||||||||||||||||
Return on avg s/h's equity with excl. (non-GAAP) | 7.03 | % | 7.43 | % | 8.92 | % | 8.86 | % | 8.97 | % | 9.46 | % | 9.65 | % | 9.19 | % | 8.05 | % | 9.29 | % | |||||||||||||||||||||||||||
Effect of adjustment for intangible assets | 6.49 | % | 6.80 | % | 8.28 | % | 8.55 | % | 8.95 | % | 7.82 | % | 7.27 | % | 7.15 | % | 7.49 | % | 7.85 | % | |||||||||||||||||||||||||||
Return on avg tangible s/h's equity with exclusions (non-GAAP) | 13.52 | % | 14.23 | % | 17.20 | % | 17.41 | % | 17.92 | % | 17.28 | % | 16.92 | % | 16.34 | % | 15.54 | % | 17.14 | % | |||||||||||||||||||||||||||
(2) Return on Average Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Return on avg assets (GAAP) | 1.17 | % | 1.16 | % | 1.47 | % | 1.44 | % | 1.39 | % | 1.12 | % | 1.42 | % | 1.36 | % | 1.30 | % | 1.32 | % | |||||||||||||||||||||||||||
Effect of adjustment for intangible assets | 0.14 | % | 0.14 | % | 0.17 | % | 0.17 | % | 0.17 | % | 0.14 | % | 0.15 | % | 0.15 | % | 0.16 | % | 0.15 | % | |||||||||||||||||||||||||||
Return on avg tangible assets (non-GAAP) | 1.31 | % | 1.30 | % | 1.64 | % | 1.61 | % | 1.56 | % | 1.26 | % | 1.57 | % | 1.51 | % | 1.46 | % | 1.47 | % | |||||||||||||||||||||||||||
Return on avg assets (GAAP) | 1.17 | % | 1.16 | % | 1.47 | % | 1.44 | % | 1.39 | % | 1.12 | % | 1.42 | % | 1.36 | % | 1.30 | % | 1.32 | % | |||||||||||||||||||||||||||
Effect of exclusions from net income | (0.03 | )% | 0.07 | % | — | % | — | % | 0.04 | % | 0.32 | % | 0.02 | % | 0.03 | % | 0.02 | % | 0.10 | % | |||||||||||||||||||||||||||
Return on avg assets with exclusions (non-GAAP) | 1.14 | % | 1.23 | % | 1.47 | % | 1.44 | % | 1.43 | % | 1.44 | % | 1.44 | % | 1.39 | % | 1.32 | % | 1.42 | % | |||||||||||||||||||||||||||
Effect of adjustment for intangible assets | 0.14 | % | 0.16 | % | 0.17 | % | 0.17 | % | 0.17 | % | 0.15 | % | 0.14 | % | 0.15 | % | 0.16 | % | 0.16 | % | |||||||||||||||||||||||||||
Return on avg tangible assets with exclusions (non-GAAP) | 1.28 | % | 1.39 | % | 1.64 | % | 1.61 | % | 1.60 | % | 1.59 | % | 1.58 | % | 1.54 | % | 1.48 | % | 1.58 | % | |||||||||||||||||||||||||||
(3) Shareholder Equity Ratio | |||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity to actual assets (GAAP) | 15.87 | % | 16.26 | % | 16.44 | % | 16.24 | % | 15.80 | % | 15.77 | % | 14.78 | % | 14.97 | % | 15.87 | % | 15.80 | % | |||||||||||||||||||||||||||
Effect of adjustment for intangible assets | 6.62 | % | 6.80 | % | 6.82 | % | 6.88 | % | 6.88 | % | 6.97 | % | 5.43 | % | 5.61 | % | 6.62 | % | 6.88 | % | |||||||||||||||||||||||||||
Tangible capital ratio (non-GAAP) | 9.25 | % | 9.46 | % | 9.62 | % | 9.36 | % | 8.92 | % | 8.80 | % | 9.35 | % | 9.36 | % | 9.25 | % | 8.92 | % | |||||||||||||||||||||||||||
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RENASANT CORPORATION | |||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | December 31, | |||||||||||||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2019 | 2018 | ||||||||||||||||||||||||||||||||||
Interest income (FTE) | $ | 135,119 | $ | 135,927 | $ | 139,285 | $ | 138,578 | $ | 138,581 | $ | 119,236 | $ | 107,991 | $ | 101,947 | $ | 548,909 | $ | 467,755 | |||||||||||||||||||||||
Interest expense | 23,836 | 25,651 | 25,062 | 23,947 | 21,648 | 18,356 | 14,185 | 11,140 | 98,496 | 65,329 | |||||||||||||||||||||||||||||||||
Net Interest income (FTE) | $ | 111,283 | $ | 110,276 | $ | 114,223 | $ | 114,631 | $ | 116,933 | $ | 100,880 | $ | 93,806 | $ | 90,807 | $ | 450,413 | $ | 402,426 | |||||||||||||||||||||||
Total noninterest income | $ | 37,456 | $ | 37,953 | $ | 41,960 | $ | 35,885 | $ | 36,374 | $ | 38,053 | $ | 35,581 | $ | 33,953 | $ | 153,254 | $ | 143,961 | |||||||||||||||||||||||
Securities gains (losses) | — | 343 | (8 | ) | 13 | — | (16 | ) | — | — | 348 | (16 | ) | ||||||||||||||||||||||||||||||
MSR valuation adjustment | 1,296 | (3,132 | ) | — | — | — | — | — | — | (1,836 | ) | — | |||||||||||||||||||||||||||||||
Total adjusted noninterest income | $ | 36,160 | $ | 40,742 | $ | 41,968 | $ | 35,872 | $ | 36,374 | $ | 38,069 | $ | 35,581 | $ | 33,953 | $ | 154,742 | $ | 143,977 | |||||||||||||||||||||||
Total noninterest expense | $ | 95,552 | $ | 96,500 | $ | 93,290 | $ | 88,832 | $ | 93,313 | $ | 94,746 | $ | 79,026 | $ | 77,944 | $ | 374,174 | $ | 345,029 | |||||||||||||||||||||||
Amortization of intangibles | 1,946 | 1,995 | 2,053 | 2,110 | 2,169 | 1,765 | 1,594 | 1,651 | 8,105 | 7,179 | |||||||||||||||||||||||||||||||||
Merger-related expenses | 76 | 24 | 179 | — | 1,625 | 11,221 | 500 | 900 | 279 | 14,246 | |||||||||||||||||||||||||||||||||
Debt extinguishment penalty | — | 54 | — | — | — | — | — | — | 54 | — | |||||||||||||||||||||||||||||||||
Total adjusted noninterest expense | $ | 93,530 | $ | 94,427 | $ | 91,058 | $ | 86,722 | $ | 89,519 | $ | 81,760 | $ | 76,932 | $ | 75,393 | $ | 365,736 | $ | 323,604 | |||||||||||||||||||||||
Efficiency Ratio (GAAP) | 64.24 | % | 65.10 | % | 59.73 | % | 59.02 | % | 60.87 | % | 68.20 | % | 61.08 | % | 62.48 | % | 61.98 | % | 63.15 | % | |||||||||||||||||||||||
(4) Adjusted Efficiency Ratio (non-GAAP) | 63.43 | % | 62.53 | % | 58.30 | % | 57.62 | % | 58.39 | % | 58.84 | % | 59.46 | % | 60.43 | % | 60.44 | % | 59.22 | % | |||||||||||||||||||||||
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