Press Release

Renasant Corporation Announces 2016 Fourth Quarter And Year-End Results

Company Release - 1/17/2017 8:34 PM ET

TUPELO, Miss., Jan. 17, 2017 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced earnings results for the fourth quarter and year ended December 31, 2016. Net income for the fourth quarter of 2016 was approximately $23.6 million, up 11.70%, as compared to $21.2 million for the fourth quarter of 2015. Basic and diluted earnings per share ("EPS") were $0.56 and $0.55, respectively, for the fourth quarter of 2016, as compared to basic and diluted EPS of $0.53 and $0.52, respectively, for the fourth quarter of 2015.  

Net income for 2016 was $90.9 million, an increase of 33.69%, as compared to $68.0 million for 2015. Basic and diluted EPS were $2.18 and $2.17, respectively, for 2016, as compared to basic and diluted EPS of $1.89 and $1.88, respectively, for 2015.  

The Company incurred expenses and charges in connection with certain transactions that are considered to be infrequent or non-recurring in nature. The following table presents the impact of these charges on reported EPS for the dates presented:

 


Three months ended


Three months ended


December 31, 2016


December 31, 2015


Pre-tax

After-tax

Impact to

Diluted
EPS


Pre-tax

After-tax

Impact to Diluted EPS

Merger and conversion expenses

$             -

$             -

$             -


$      1,923

$      1,300

$        0.03

Loss share termination

2,053

1,495

0.04


-

-

-










Year ended


Year ended


December 31, 2016


December 31, 2015


Pre-tax

After-tax

Impact to Diluted EPS


Pre-tax

After-tax

Impact to Diluted EPS

Merger and conversion expenses

$        4,023

$        2,694

$          0.06


$    11,614

$      7,918

$        0.23

Debt prepayment penalty

2,539

1,700

0.04


-

-

-

Loss share termination

2,053

1,495

0.04


-

-

-

 

The Company's balance sheet and results of operations as of and for the year ending December 31, 2016, include the impact of the Company's acquisition of KeyWorth Bank ("KeyWorth"), a Georgia state bank headquartered in Atlanta, Georgia, which was completed on April 1, 2016. As of the acquisition date, KeyWorth operated six offices in the Atlanta metropolitan area and had approximately $399 million in assets, approximately $284 million in total loans, and approximately $347 million in total deposits. The assets acquired and liabilities assumed were recorded at estimated fair value as of the acquisition date and are subject to change pending finalization of all valuations.

On December 8, 2016, the Company's wholly owned subsidiary, Renasant Bank (the "Bank"), entered into an agreement with the Federal Deposit Insurance Corporation (the "FDIC") that terminated all of the Bank's loss share agreements with the FDIC, which includes Single-Family Shared Loss and Commercial Shared Loss agreements. All rights and obligations of the Bank and the FDIC under the FDIC loss share agreements were eliminated under the termination agreement.  The Company incurred a one-time pre-tax charge of $2.1 million, or $1.4 million on an after-tax basis, in connection with the termination agreement. At December 31, 2016, the Company had $28.1 million in loans, $2.6 million of which were nonperforming, and $487 thousand in other real estate owned ("OREO") which had been previously covered under these loss share agreements. 

"We made significant achievements in 2016, and the financial results for the year are a testament to a well executed plan. Our diluted EPS of $2.17 per share represents our highest reported yearly earnings which was driven by the strong performance of our overall company coupled with the successful conversion and integration of KeyWorth's operations," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "The results include our successful completion of the KeyWorth acquisition and a 22.97% annual growth in our legacy loan portfolio. As we look to 2017, we believe we are well positioned to continue to improve on profitability and earnings growth, which in turn will generate shareholder value."

Highlights from the fourth quarter and annual results of 2016 include the following:

Enhanced Profitability

  • Total assets increased $773.4 million to $8.7 billion at December 31, 2016, as compared to $7.9 billion at December 31, 2015. Earning assets contributed $778.3 million of the increase year over year.
                                                      
  • Loans not acquired increased $880.0 million, or 22.97%, to $4.7 billion from December 31, 2015. For the fourth quarter of 2016, the yield on loans was 5.02% compared to 5.03% for the same period in 2015. The yield on loans excluding the impact from purchase accounting adjustments during the fourth quarter of 2016 was 4.51% compared to 4.48% for the same period in 2015. The yield on loans was 4.95% for the full year of 2016 compared to 4.91% for 2015. The yield on loans excluding the impact from purchase accounting adjustments on loans was 4.47% and 4.50% for 2016 and 2015, respectively.

 


 Three Months Ended 


 Year Ended 


 December 31,  


 December 31,  


2016


2015


2016


2015

Taxable equivalent interest income on loans (as reported)

$          79,894


$          71,144


$         303,830


$         237,408

Accretable yield recognized on purchased loans

8,092


7,806


29,614


20,024

Interest income on loans (excluding accretable yield)

$          71,802


$          63,338


$         274,216


$         217,384









Average loans

$     6,331,660


$     5,610,039


$      6,133,171


$      4,836,002









Loan yield, as reported

5.02%


5.03%


4.95%


4.91%

Loan yield excluding accretable yield

4.51%


4.48%


4.47%


4.50%

 

  • Total deposits increased $840.5 million, or 13.52%, to $7.1 billion from December 31, 2015, with noninterest bearing deposits growing 22.14% during the same time. Noninterest-bearing deposits averaged $1.47 billion, or 22.00% of average deposits, for 2016, compared to $1.13 billion, or 20.29% of average deposits, for 2015. For the fourth quarter of 2016, the cost of total deposits was 28 basis points, as compared to 22 basis points for the same period in 2015. The cost of total deposits was 27 basis points for the full year of 2016, as compared to 25 basis points in 2015.
                                                              
  • Net interest income was $78.0 million for the fourth quarter of 2016, as compared to $72.4 million for the fourth quarter of 2015. Net interest margin was 4.24% for the fourth quarter of 2016, as compared to 4.33% for the fourth quarter of 2015. The following table reconciles reported net interest margin to net interest margin excluding the impact from purchase accounting adjustments on loans for the periods presented:

 


 Three Months Ended 


 December 31,  


2016


2015

Taxable equivalent net interest income (as reported)

$          79,774


$          74,242

Accretable yield recognized on purchased loans(1)

8,092


7,806

Net interest income (excluding accretable yield)

$          71,682


$          66,436





Average earning assets

$     7,483,222


$     6,798,474





Net interest margin, as reported

4.24%


4.33%

Net interest margin, excluding accretable yield

3.81%


3.88%


(1)       Includes additional interest income recognized in connection with the acceleration of paydowns
           and payoffs from acquired loans of $4,728 and $3,686 for the three months ended December 31,
           2016 and 2015, respectively, which increased net interest margin by 25 basis points and 22 basis
           points for the same periods, respectively.

 

  • Net interest income was $301.0 million for the year ended December 31, 2016, as compared to $241.4 million for the year ended December 31, 2015. Net interest margin was 4.22% for 2016, as compared to 4.16% for the prior year. The following table reconciles reported net interest margin to net interest margin excluding the impact from purchase accounting adjustments on loans for the periods presented:

 


Year Ended


December 31,


2016


2015

Taxable equivalent net interest income (as reported)

$         308,002


$         248,613

Accretable yield recognized on purchased loans(1)

29,614


20,024

Net interest income (excluding accretable yield)

$         278,388


$         228,589





Average earning assets

$      7,296,296


$      5,974,000





Net interest margin, as reported

4.22%


4.16%

Net interest margin, excluding accretable yield

3.82%


3.83%


(1)       Includes additional interest income recognized in connection with the acceleration of paydowns
           and payoffs from acquired loans of $14,733 and $9,130 for the year ended December 31, 2016
           and 2015, respectively, which increased net interest margin by 20 basis points and 15 basis
           points for the same periods, respectively.

 

  • Noninterest income for the fourth quarter of 2016 was $30.1 million, as compared to $31.4 million in the same period of 2015. The decrease is driven by a decline in mortgage banking income resulting from rising interest rates during the fourth quarter of 2016. Noninterest income increased to $137.2 million for the full year of 2016, as compared to $108.3 million for 2015. The growth is primarily attributable to an increase in mortgage banking income, income from the Company's wealth management division and the KeyWorth acquisition.
                                                                 
  • Noninterest expense was $71.4 million for the fourth quarter of 2016, as compared to $70.7 million for the fourth quarter of 2015 and $294.9 million for the full year of 2016, as compared to $245.1 million for 2015. Excluding nonrecurring charges for merger and conversion expenses, debt prepayment penalties and loss share termination, the increase from 2015 is primarily attributable to the addition of KeyWorth operations and strategic additions of personnel.

The following table presents the Company's profitability metrics for the quarter and year ending December 31, 2016, including and excluding the impact of after-tax merger and conversion expenses, debt prepayment penalties and loss share termination:

 


Three Months Ended


Year Ended


December 31, 2016


December 31, 2016


As Reported

Excluding Merger and
Conversion Expenses, Debt
Prepayment Penalties and Loss
Share Termination


As Reported

Excluding Merger and

Conversion Expenses, Debt
Prepayment Penalties and
Loss Share Termination

Return on average assets

1.09%

1.16%


1.08%

1.15%

Return on average tangible assets

1.22%

1.28%


1.20%

1.28%

Return on average equity

8.14%

8.61%


8.15%

8.66%

Return on average tangible equity

14.90%

15.73%


15.28%

16.21%

 

Aggressively Managed Problem Credits 
Total nonperforming assets were $58.8 million at December 31, 2016, a decrease of $22.0 million from December 31, 2015, and consisted of $35.5 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $23.3 million in OREO. 

The Company's nonperforming loans and OREO that were purchased in previous acquisitions (collectively referred to as "acquired nonperforming assets") were $22.2 million and $17.4 million, respectively, at December 31, 2016, as compared to $30.5 million and $22.4 million, respectively, at December 31, 2015.  The acquired 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 primarily focuses on non-acquired nonperforming assets.

  • Non-acquired nonperforming loans decreased to $13.4 million, or 0.28% of total non-acquired loans, at December 31, 2016, from $15.0 million, or 0.39% of total non-acquired loans, at December 31, 2015. Early stage delinquencies, or loans 30-to-89 days past due, as a percentage of total loans were 0.23% at December 31, 2016, as compared to 0.19% at December 31, 2015.
                                                        
  • Non-acquired OREO decreased 54.35% to $5.9 million at December 31, 2016, from $13.0 million at December 31, 2015. Non-acquired OREO sales totaled $10.0 million in 2016 with $4.2 million occurring during the fourth quarter of 2016.
                                                        
  • The allowance for loan losses represents 0.69% of total loans at December 31, 2016, as compared to 0.78% at December 31, 2015. The allowance for loan losses represents 0.91% of nonaquired loans at December 31, 2016, as compared to 1.11% at December 31, 2015.
                                                        
    • Net loan charge-offs were $4.8 million, or 0.31% of average total loans, for the fourth quarter of 2016, as compared to $1.4 million, or 0.10% of average total loans, for the same period in 2015. Net loan charge-offs were $7.2 million, or 0.12% of average total loans, for 2016, as compared to $4.6 million, or 0.10% of average total loans, for 2015. The increase year over year and quarter over quarter is attributable to bringing several problem credits to final resolution. The charges were fully reserved for in the Company's allowance for loan losses and resulted in no additional provision for loan loss expense.
                                                          
    • Provision for loan losses was $1.7 million for the fourth quarter of 2016, as compared to $1.8 million for the fourth quarter of 2016 and $7.5 million for the full year 2016, as compared to $4.8 million for 2015. The increase in the Company's provision year over year is primarily attributable to the aforementioned nonacquired loan growth.

      Built Our Capital Ratios

      • At December 31, 2016, Tier 1 leverage capital ratio was 10.59%, Common Equity Tier 1 ratio was 11.48%, Tier 1 risk-based bapital ratio was 12.86%, and total risk-based capital ratio was 15.03%. All regulatory ratios exceed the minimums required to be considered "well-capitalized."
                                                      
      • Tangible common equity ratio was 9.00% at December 31, 2016, as compared to 7.54% at December 31, 2015.
                                                      
      • In December 2016, the Company completed the underwritten public offering of 2,135,000 shares of the Company's common stock at a public offering price of $41.50 per share resulting in net proceeds to the Company of $84.1 million.
                                                      
      • In August 2016, the Company completed the public offering and sale of $60 million of the Company's 5.00% fixed-to-floating rate subordinated notes due September 1, 2026, and $40 million of its 5.50% fixed-to-floating rate subordinated notes due September 1, 2031 (collectively, the "Notes"). The Notes resulted in net proceeds to the Company of $98.2 million and qualify as Tier 2 capital.

      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 18, 2017.

      The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst170118.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Fourth Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.

      The webcast will be archived on www.renasant.com beginning one hour after the call and will remain accessible for one year.  Replays can also be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 10098912 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 2, 2017.

      ABOUT RENASANT CORPORATION:  
      Renasant Corporation is the parent of Renasant Bank, a 113-year-old financial services institution. Renasant has assets of approximately $8.7 billion and operates more than 175 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama, Florida and Georgia.

      NOTE TO INVESTORS:  
      This news release may contain, or incorporate by reference, statements which may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Such forward looking statements usually include words such as "expects," "projects," "anticipates," "believes," "intends," "estimates," "strategy," "plan," "potential," "possible" and other similar expressions. 

      Prospective investors are cautioned that any such forward-looking statements are not guarantees for future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.  Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include significant fluctuations in interest rates, inflation, economic recession, significant changes in the federal and state legal and regulatory environment, significant underperformance in the Company's portfolio of outstanding loans, and competition in the Company's markets. Management undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

      NON-GAAP FINANCIAL MEASURES:  
      In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures.  These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and certain charges that the Company considers to be non-recurring in nature.  The Company's 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.

      The specific non-GAAP financial measures used are 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.  The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP.  Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company's calculations may not be comparable to other similarly titled measures presented by other companies. Also there may be limits in the usefulness of these measures to investors.  As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.

      Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption "Reconciliation of GAAP to Non-GAAP."

       

      RENASANT CORPORATION



















      (Unaudited)





















      (Dollars in thousands, except per share data)





































      Q4 2016 -


      For the Year Ending






      2016


      2015


      Q4 2015


      December 31, 






      Fourth


      Third


      Second


      First


      Fourth


      Third


      Second


      First


      Percent






      Percent

      Statement of earnings



      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Variance


      2016


      2015


      Variance





























      Interest income - taxable equivalent basis


      $           87,564


      $           84,786


      $           85,783


      $           78,009


      $           79,679


      $            76,242


      $            58,516


      $            55,910


      9.90


      $         336,149


      $           270,278


      24.37





























      Interest income 




      $           85,839


      $           83,032


      $           84,008


      $           76,259


      $           77,788


      $            74,300


      $            56,769


      $            54,166


      10.35


      $         329,138


      $           263,023


      25.14

      Interest expense




      7,790


      7,301


      6,851


      6,205


      5,437


      5,688


      5,155


      5,385


      43.28


      28,147


      21,665


      29.92


      Net interest income



      78,049


      75,731


      77,157


      70,054


      72,351


      68,612


      51,614


      48,781


      7.88


      300,991


      241,358


      24.71





























      Provision for loan losses



      1,650


      2,650


      1,430


      1,800


      1,750


      750


      1,175


      1,075


      (5.71)


      7,530


      4,750


      58.53


      Net interest income after provision


      76,399


      73,081


      75,727


      68,254


      70,601


      67,862


      50,439


      47,706


      8.21


      293,461


      236,608


      24.03





























      Service charges on deposit accounts


      8,163


      8,200


      7,521


      7,991


      8,261


      8,151


      6,522


      6,335


      (1.19)


      31,875


      29,269


      8.90

      Fees and commissions on loans and deposits


      4,588


      4,921


      4,877


      4,244


      4,353


      4,271


      3,505


      3,632


      5.40


      18,630


      15,761


      18.20

      Insurance commissions and fees



      1,951


      2,420


      2,175


      1,962


      1,956


      2,381


      2,119


      1,967


      (0.26)


      8,508


      8,423


      1.01

      Wealth management revenue



      2,849


      3,040


      2,872


      2,891


      2,609


      2,833


      2,210


      2,156


      9.20


      11,652


      9,808


      18.80

      Securities gains (losses) 



      -


      -


      1,257


      (71)


      -


      -


      96


      -


      -


      1,186


      96


      1,135.42

      Mortgage banking income



      8,262


      15,846


      13,420


      11,915


      11,702


      11,893


      6,791


      5,429


      (29.40)


      49,443


      35,815


      38.05

      Other




      4,258


      3,845


      3,464


      4,370


      2,561


      2,550


      1,637


      2,350


      66.26


      15,937


      9,098


      75.17


      Total noninterest income



      30,071


      38,272


      35,586


      33,302


      31,442


      32,079


      22,880


      21,869


      (4.36)


      137,231


      108,270


      26.75





























      Salaries and employee benefits



      39,966


      44,702


      45,387


      42,393


      43,409


      43,048


      30,394


      28,260


      (7.93)


      172,448


      145,111


      18.84

      Data processing




      4,503


      4,560


      4,502


      4,158


      4,003


      3,819


      3,199


      3,230


      12.49


      17,723


      14,251


      24.36

      Occupancy and equipment



      8,809


      8,830


      8,531


      8,224


      8,171


      7,733


      5,524


      5,559


      7.81


      34,394


      26,987


      27.45

      Other real estate




      1,585


      1,540


      1,614


      957


      698


      861


      954


      532


      127.08


      5,696


      3,045


      87.06

      Amortization of intangibles



      1,624


      1,684


      1,742


      1,697


      1,752


      1,803


      1,239


      1,275


      (7.31)


      6,747


      6,069


      11.17

      Merger and conversion related expenses


      -


      268


      2,807


      948


      1,923


      7,746


      1,467


      478


      (100.00)


      4,023


      11,614


      (65.36)

      Debt extinguishment penalty



      -


      2,210


      329


      -


      -


      -


      -


      -


      -


      2,539


      -


      1.00

      Loss share termination



      2,053


      -


      -


      -


      -


      -


      -


      -


      100.00


      2,053


      -


      1.00

      Other




      12,834


      12,674


      12,347


      11,437


      10,778


      10,969


      8,306


      7,984


      19.08


      49,292


      38,037


      29.59


      Total noninterest expense



      71,374


      76,468


      77,259


      69,814


      70,734


      75,979


      51,083


      47,318


      0.90


      294,915


      245,114


      20.32





























      Income before income taxes



      35,096


      34,885


      34,054


      31,742


      31,309


      23,962


      22,236


      22,257


      12.10


      135,777


      99,764


      36.10

      Income taxes




      11,461


      11,706


      11,154


      10,526


      10,149


      7,742


      6,842


      7,017


      12.93


      44,847


      31,750


      41.25


      Net income 




      $           23,635


      $           23,179


      $           22,900


      $           21,216


      $           21,160


      $            16,220


      $            15,394


      $            15,240


      11.70


      $           90,930


      $             68,014


      33.69





























      Basic earnings per share



      $               0.56


      $               0.55


      $               0.54


      $               0.53


      $               0.53


      $                0.40


      $                0.49


      $                0.48


      5.66


      $               2.18


      $                 1.89


      15.34

      Diluted earnings per share



      0.55


      0.55


      0.54


      0.52


      0.52


      0.40


      0.48


      0.48


      5.77


      2.17


      1.88


      15.43





























      Average basic shares outstanding



      42,441,588


      42,091,164


      42,066,168


      40,324,475


      40,276,441


      40,265,941


      31,626,059


      31,576,275


      5.38


      41,737,636


      35,971,877


      16.03

      Average diluted shares outstanding


      42,636,325


      42,310,358


      42,303,626


      40,559,145


      40,539,151


      40,518,413


      31,865,172


      31,815,710


      5.17


      41,962,907


      36,227,439


      15.83





























      Common shares outstanding



      44,332,273


      42,102,224


      42,085,690


      40,373,753


      40,293,291


      40,268,455


      31,644,706


      31,604,937


      10.02


      44,332,273


      40,293,291


      10.02

      Cash dividend per common share



      $               0.18


      $               0.18


      $               0.18


      $               0.17


      $               0.17


      $                0.17


      $                0.17


      $                0.17


      5.88


      $               0.71


      $                 0.68


      4.41





























      Performance ratios


























      Return on average shareholders' equity


      8.14%


      8.12%


      8.21%


      8.12%


      8.12%


      6.33%


      8.42%


      8.59%




      8.15%


      7.76%



      Return on average tangible shareholders' equity (1)


      14.90%


      15.15%


      15.57%


      15.58%


      15.84%


      12.20%


      14.89%


      15.45%




      15.28%


      14.50%



      Return on average assets



      1.09%


      1.08%


      1.08%


      1.07%


      1.06%


      0.81%


      1.06%


      1.06%




      1.08%


      0.99%



      Return on average tangible assets (2)


      1.22%


      1.20%


      1.20%


      1.20%


      1.19%


      0.93%


      1.17%


      1.18%




      1.20%


      1.11%































      Net interest margin (FTE)



      4.24%


      4.15%


      4.29%


      4.21%


      4.33%


      4.09%


      4.17%


      4.02%




      4.22%


      4.16%



      Yield on earning assets (FTE)



      4.66%


      4.54%


      4.66%


      4.57%


      4.65%


      4.42%


      4.57%


      4.45%




      4.61%


      4.52%



      Cost of funding




      0.42%


      0.40%


      0.38%


      0.37%


      0.32%


      0.33%


      0.41%


      0.43%




      0.39%


      0.37%



      Average earning assets to average assets


      87.10%


      86.82%


      86.59%


      86.21%


      86.07%


      86.64%


      87.79%


      87.49%




      86.69%


      86.89%



      Average loans to average deposits


      88.89%


      89.40%


      87.73%


      87.39%


      86.22%


      83.63%


      81.93%


      81.44%




      88.38%


      83.51%































      Noninterest income (less securities gains/


























      losses) to average assets



      1.39%


      1.78%


      1.62%


      1.69%


      1.58%


      1.61%


      1.56%


      1.52%




      1.62%


      1.57%



      Noninterest expense (less debt prepayment penalties/


























      merger-related expenses) to average assets


      3.21%


      3.44%


      3.49%


      3.48%


      3.46%


      3.43%


      3.40%


      3.26%




      3.40%


      3.40%



      Net overhead ratio




      1.82%


      1.66%


      1.87%


      1.79%


      1.88%


      1.82%


      1.84%


      1.74%




      1.78%


      1.83%



      Efficiency ratio (FTE) (4)



      61.63%


      62.46%


      63.91%


      63.86%


      63.45%


      64.73%


      63.53%


      62.94%




      62.96%


      63.74%



       

       

      RENASANT CORPORATION





















      (Unaudited)





















      (Dollars in thousands, except per share data)










































      Q4 2016 -


      For the Year Ending






      2016


      2015


      Q4 2015


      December 31, 






      Fourth


      Third


      Second


      First


      Fourth


      Third


      Second


      First


      Percent






      Percent

      Average balances



      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Variance


      2016


      2015


      Variance

      Total assets




      $      8,591,795


      $      8,562,199


      $      8,541,818


      $      7,961,700


      $      7,898,803


      $       7,897,769


      $       5,847,539


      $       5,821,758


      8.77


      $      8,416,509


      $        6,874,983


      22.42

      Earning assets




      7,483,221


      7,433,461


      7,396,283


      6,863,905


      6,798,474


      6,842,452


      5,133,567


      5,093,224


      10.07


      7,296,296


      5,974,001


      22.13

      Securities




      1,034,269


      1,045,905


      1,111,831


      1,103,504


      1,117,322


      1,143,577


      999,962


      989,743


      (7.43)


      1,073,611


      1,063,222


      0.98

      Mortgage loans held for sale



      184,653


      241,314


      306,011


      217,200


      268,096


      398,480


      87,435


      50,918


      (31.12)


      237,216


      202,368


      17.22

      Loans, net of unearned



      6,147,007


      6,048,017


      5,897,650


      5,482,167


      5,341,943


      5,223,273


      3,978,514


      3,969,243


      15.07


      5,895,955


      4,633,635


      27.24

      Intangibles




      495,404


      497,064


      499,503


      473,852


      473,996


      449,042


      295,441


      296,682


      4.52


      491,530


      379,469


      29.53





























      Noninterest-bearing deposits



      $      1,564,150


      $      1,510,309


      $      1,477,380


      $      1,316,495


      $      1,323,467


      $       1,272,714


      $          969,770


      $          932,011


      18.19


      $      1,467,881


      $        1,125,969


      30.37

      Interest-bearing deposits



      5,351,354


      5,255,102


      5,245,406


      4,956,983


      4,872,432


      4,972,717


      3,886,199


      3,941,863


      9.83


      5,203,437


      4,422,371


      17.66


      Total deposits




      6,915,505


      6,765,411


      6,722,786


      6,273,478


      6,195,899


      6,245,431


      4,855,969


      4,873,874


      11.61


      6,671,318


      5,548,340


      20.24

      Borrowed funds




      412,589


      550,222


      594,459


      539,078


      568,548


      556,269


      204,884


      168,758


      (27.43)


      523,812


      376,208


      39.23

      Shareholders' equity



      1,155,749


      1,135,073


      1,121,298


      1,050,668


      1,033,692


      1,016,143


      733,158


      719,687


      11.81


      1,116,038


      876,915


      27.27


















































      Q4 2016 -


      As of






      2016


      2015


      Q4 2015


      December 31, 






      Fourth


      Third


      Second


      First


      Fourth


      Third


      Second


      First


      Percent






      Percent

      Balances at period end



      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Variance


      2016


      2015


      Variance

      Total assets




      8,699,851


      8,542,471


      8,529,566


      8,146,229


      7,926,496


      7,910,963


      5,899,190


      5,881,849


      9.76


      8,699,851


      7,926,496


      9.76

      Earning assets




      7,556,760


      7,409,068


      7,396,888


      7,045,179


      6,778,485


      6,810,285


      5,186,419


      5,168,498


      11.48


      7,556,760


      6,778,485


      11.48

      Securities




      1,030,530


      1,039,957


      1,063,592


      1,101,820


      1,105,205


      1,139,553


      965,290


      1,016,394


      (6.76)


      1,030,530


      1,105,205


      (6.76)

      Mortgage loans held for sale



      181,053


      189,965


      276,782


      298,365


      225,254


      317,681


      108,023


      102,780


      (19.62)


      181,053


      225,254


      (19.62)

      Loans not acquired




      4,710,385


      4,526,026


      4,292,549


      4,074,413


      3,830,434


      3,607,005


      3,407,925


      3,274,314


      22.97


      4,710,385


      3,830,434


      22.97

      Loans acquired and covered by FDIC loss-share agreements

      -


      30,533


      42,171


      44,989


      93,142


      100,839


      121,626


      125,773


      (100.00)


      -


      93,142


      (100.00)

      Loans acquired and not covered by FDIC loss-share agreements

      1,489,137


      1,548,674


      1,630,709


      1,453,328


      1,489,886


      1,570,116


      507,653


      553,574


      (0.05)


      1,489,137


      1,489,886


      (0.05)


      Total loans




      6,199,522


      6,105,233


      5,965,429


      5,572,730


      5,413,462


      5,277,960


      4,037,204


      3,953,661


      14.52


      6,199,522


      5,413,462


      14.52

      Intangibles




      494,608


      496,233


      497,917


      476,539


      474,682


      474,830


      294,808


      296,053


      4.20


      494,608


      474,682


      4.20





























      Noninterest-bearing deposits



      1,561,357


      1,514,820


      1,459,383


      1,384,503


      1,278,337


      1,303,884


      972,672


      959,351


      22.14


      1,561,357


      1,278,337


      22.14

      Interest-bearing deposits



      5,497,780


      5,302,978


      5,243,104


      5,046,874


      4,940,265


      4,930,677


      3,917,772


      3,983,418


      11.29


      5,497,780


      4,940,265


      11.29


      Total deposits




      7,059,137


      6,817,798


      6,702,487


      6,431,377


      6,218,602


      6,234,561


      4,890,444


      4,942,769


      13.52


      7,059,137


      6,218,602


      13.52

      Borrowed funds




      312,135


      469,580


      588,650


      561,671


      570,496


      551,740


      219,089


      162,313


      (45.29)


      312,135


      570,496


      (45.29)

      Shareholders' equity



      1,232,883


      1,142,247


      1,124,256


      1,053,178


      1,036,818


      1,024,930


      730,976


      723,196


      18.91


      1,232,883


      1,036,818


      18.91





























      Market value per common share



      $             42.22


      $             33.63


      $             32.33


      $             32.91


      $             34.41


      $              32.85


      $              32.60


      $              30.05


      22.70


      $             42.22


      34.41


      22.70

      Book value per common share



      27.81


      27.13


      26.71


      26.09


      25.73


      25.45


      23.10


      22.88


      8.08


      27.81


      25.73


      8.08

      Tangible book value per common share


      16.65


      15.34


      14.88


      14.28


      13.95


      13.66


      13.78


      13.52


      19.35


      16.65


      13.95


      19.35

      Shareholders' equity to assets (actual)


      14.17%


      13.37%


      13.18%


      12.93%


      13.08%


      12.96%


      12.39%


      12.30%




      14.17%


      13.08%



      Tangible capital ratio (3)



      9.00%


      8.03%


      7.80%


      7.52%


      7.54%


      7.40%


      7.78%


      7.65%




      9.00%


      7.54%



























































      Leverage ratio




      10.59%


      9.38%


      9.18%


      9.19%


      9.16%


      8.95%


      9.89%


      9.74%




      10.59%


      9.16%



      Common equity tier 1 capital ratio


      11.47%


      10.16%


      10.12%


      9.88%


      9.99%


      9.92%


      10.45%


      10.35%




      11.48%


      9.99%



      Tier 1 risk-based capital ratio



      12.86%


      11.57%


      11.55%


      11.38%


      11.51%


      11.46%


      12.52%


      12.47%




      12.86%


      11.51%



      Total risk-based capital ratio



      15.03%


      13.84%


      12.31%


      12.17%


      12.32%


      12.27%


      13.55%


      13.51%




      15.03%


      12.32%



       

       

      RENASANT CORPORATION























      (Unaudited)























      (Dollars in thousands, except per share data)










































      Q4 2016 -


      As of






      2016


      2015


      Q4 2015


      December 31, 






      Fourth


      Third


      Second


      First


      Fourth


      Third


      Second


      First


      Percent






      Percent

      Loans not acquired by category


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Quarter


      Variance


      2016


      2015


      Variance

      Commercial, financial, agricultural



      $         589,290


      $         554,151


      $         530,258


      $         520,463


      $         485,407


      $          450,688


      $          437,181


      $          418,752


      21.40


      $         589,290


      $           485,407


      21.40

      Lease financing




      46,841


      45,510


      43,116


      41,937


      34,815


      24,698


      17,633


      11,560


      34.54


      46,841


      34,815


      34.54

      Real estate - construction



      483,926


      415,934


      381,690


      325,188


      291,701


      268,805


      212,071


      200,966


      65.90


      483,926


      291,701


      65.90

      Real estate - 1-4 family mortgages


      1,422,543


      1,388,066


      1,328,948


      1,263,879


      1,204,228


      1,128,556


      1,073,816


      1,025,264


      18.13


      1,422,543


      1,204,228


      18.13

      Real estate - commercial mortgages


      2,075,137


      2,030,626


      1,918,778


      1,836,053


      1,729,049


      1,653,534


      1,589,969


      1,542,706


      20.02


      2,075,137


      1,729,049


      20.02

      Installment loans to individuals



      92,648


      91,739


      89,759


      86,893


      85,234


      80,724


      77,255


      75,066


      8.70


      92,648


      85,234


      8.70


      Loans, net of unearned



      $      4,710,385


      $      4,526,026


      $      4,292,549


      $      4,074,413


      $      3,830,434


      $       3,607,005


      $       3,407,925


      $       3,274,314


      22.97


      $      4,710,385


      $        3,830,434


      22.97





























      Loans acquired and covered by FDIC loss-share agreements























      Commercial, financial, agricultural



      $                     -


      $                  14


      $                607


      $                624


      $             2,406


      $              2,467


      $              3,726


      $              3,917


      (100.00)


      $                    -


      $               2,406


      (100.00)

      Lease financing




      -


      -


      -


      -


      -


      -


      -


      -


      -


      -


      -


      -

      Real estate - construction



      -


      -


      83


      86


      130


      137


      -


      -


      (100.00)


      -


      130


      (100.00)

      Real estate - 1-4 family mortgages


      -


      30,304


      34,640


      36,350


      45,988


      48,779


      40,333


      42,758


      (100.00)


      -


      45,988


      (100.00)

      Real estate - commercial mortgages


      -


      180


      6,790


      7,870


      44,550


      49,382


      77,536


      79,064


      (100.00)


      -


      44,550


      (100.00)

      Installment loans to individuals



      -


      35


      51


      59


      68


      74


      31


      34


      (100.00)


      -


      68


      (100.00)


      Loans, net of unearned



      $                     -


      $           30,533


      $           42,171


      $           44,989


      $           93,142


      $          100,839


      $          121,626


      $          125,773


      (100.00)


      $                    -


      $             93,142


      (100.00)





























      Loans acquired and not covered by FDIC loss-share agreements























      Commercial, financial, agricultural



      $         128,200


      $         139,961


      $         152,071


      $         133,847


      $         149,024


      $          167,966


      $            39,652


      $            52,119


      (13.97)


      $         128,200


      $           149,024


      (13.97)

      Lease financing




      -


      -


      -


      -


      -


      -


      -


      -


      -


      -


      -


      -

      Real estate - construction



      68,753


      71,704


      70,958


      52,300


      65,834


      70,428


      505


      483


      4.43


      68,753


      65,834


      4.43

      Real estate - 1-4 family mortgages


      452,447


      452,274


      485,458


      477,266


      485,107


      485,170


      161,765


      171,433


      (6.73)


      452,447


      485,107


      (6.73)

      Real estate - commercial mortgages


      823,758


      864,825


      898,108


      763,587


      760,130


      813,973


      295,484


      317,224


      8.37


      823,758


      760,130


      8.37

      Installment loans to individuals



      15,979


      19,910


      24,114


      26,328


      29,791


      32,579


      10,247


      12,315


      (46.36)


      15,979


      29,791


      (46.36)


      Loans, net of unearned



      $      1,489,137


      $      1,548,674


      $      1,630,709


      $      1,453,328


      $      1,489,886


      $       1,570,116


      $          507,653


      $          553,574


      (0.05)


      $      1,489,137


      $        1,489,886


      (0.05)





























      Asset quality data


























      Assets not acquired:


























      Nonaccrual loans




      $           11,273


      $           12,454


      $           10,591


      $           11,690


      $           13,645


      $            14,522


      $            15,514


      $            17,719


      (17.38)


      $           11,273


      $             13,645


      (17.38)

      Loans 90 past due or more



      2,079


      2,315


      1,428


      2,495


      1,326


      647


      5,647


      1,193


      56.79


      2,079


      1,326


      56.79

      Nonperforming loans



      13,352


      14,769


      12,019


      14,185


      14,971


      15,169


      21,161


      18,912


      (10.81)


      13,352


      14,971


      (10.81)

      Other real estate owned



      5,929


      8,429


      9,575


      12,810


      12,987


      13,936


      14,967


      16,735


      (54.35)


      5,929


      12,987


      (54.35)

      Nonperforming assets not acquired


      $           19,281


      $           23,198


      $           21,594


      $           26,995


      $           27,958


      $            29,105


      $            36,128


      $            35,647


      (31.04)


      $           19,281


      $             27,958


      (31.04)





























      Assets acquired and subject to loss share:

























      Nonaccrual loans




      $                     -


      $             1,628


      $             2,060


      $             2,708


      $             3,319


      $              3,270


      $            19,487


      $            18,040


      (100.00)


      $                    -


      $               3,319


      (100.00)

      Loans 90 past due or more



      -


      786


      2,076


      4,343


      3,609


      4,143


      -


      -


      (100.00)


      -


      3,609


      (100.00)

      Nonperforming loans subject to loss share


      -


      2,414


      4,136


      7,051


      6,928


      7,413


      19,487


      18,040


      (100.00)


      -


      6,928


      (100.00)

      Other real estate owned



      -


      926


      2,618


      1,373


      2,818


      3,183


      3,853


      4,325


      (100.00)


      -


      2,818


      (100.00)

      Nonperforming assets acquired and subject to loss share


      $                     -


      $             3,340


      $             6,754


      $             8,424


      $             9,746


      $            10,596


      $            23,340


      $            22,365


      (100.00)


      $                    -


      $               9,746


      (100.00)





























      Assets acquired and not subject to loss share:

























      Nonaccrual loans




      $           11,347


      $           12,105


      $           13,312


      $           12,368


      $           12,070


      $            15,796


      $              1,085


      $              1,627


      (5.99)


      $           11,347


      $             12,070


      (5.99)

      Loans 90 past due or more



      10,815


      12,619


      13,650


      10,805


      11,458


      8,824


      2,523


      9,636


      (5.61)


      10,815


      11,458


      (5.61)

      Nonperforming loans



      22,162


      24,724


      26,962


      23,173


      23,528


      24,620


      3,608


      11,263


      (5.81)


      22,162


      23,528


      (5.81)

      Other real estate owned



      17,370


      16,973


      17,146


      19,051


      19,597


      19,215


      8,244


      10,626


      (11.36)


      17,370


      19,597


      (11.36)

      Nonperforming assets acquired



      $           39,532


      $           41,697


      $           44,108


      $           42,224


      $           43,125


      $            43,835


      $            11,852


      $            21,889


      (8.33)


      $           39,532


      $             43,125


      (8.33)





























      Net loan charge-offs (recoveries)



      $             4,837


      $                824


      $                191


      $             1,378


      $             1,364


      $                 588


      $              1,588


      $              1,062


      254.62


      $             7,230


      $               4,602


      57.11

      Allowance for loan losses



      42,737


      45,924


      44,098


      42,859


      42,437


      42,051


      41,888


      42,302


      0.71


      42,737


      $             42,437


      0.71

      Annualized net loan charge-offs / average loans


      0.31%


      0.05%


      0.01%


      0.10%


      0.10%


      0.04%


      0.16%


      0.11%




      0.12%


      0.10%































      Nonperforming loans / total loans* 


      0.57%


      0.69%


      0.72%


      0.80%


      0.84%


      0.89%


      1.10%


      1.22%




      0.57%


      0.84%



      Nonperforming assets / total assets*


      0.68%


      0.80%


      0.85%


      0.95%


      1.02%


      1.06%


      1.21%


      1.36%




      0.68%


      1.02%



      Allowance for loan losses / total loans*


      0.69%


      0.75%


      0.74%


      0.77%


      0.78%


      0.80%


      1.04%


      1.07%




      0.69%


      0.78%



      Allowance for loan losses / nonperforming loans*