Renasant Corporation Announces 2017 First Quarter Earnings

April 25, 2017

TUPELO, Miss., April 25, 2017 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced earnings results for the first quarter of 2017. Net income for the first quarter of 2017 was approximately $24.0 million, up 12.99%, as compared to $21.2 million for the first quarter of 2016. Basic and diluted earnings per share ("EPS") were $0.54 for the first quarter of 2017, as compared to basic and diluted EPS of $0.53 and $0.52, respectively, for the first quarter of 2016.

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 (in thousands):

	Three months ended March 31, 2017						Three months ended March 31, 2016
	Pre-tax		After-tax		Impact to Diluted EPS		Pre-tax		After-tax		Impact to Diluted EPS
Merger and conversion expenses	$	345	$	235	$	0.01	$	948	$	634	$	0.02
Debt prepayment penalty	205		140		—		—		—		—

On January 17, 2017, the Company and Metropolitan BancGroup, Inc. ("Metropolitan"), the parent company of Metropolitan Bank, jointly announced the signing of a definitive merger agreement pursuant to which the Company will acquire Metropolitan in an all-stock merger transaction. Metropolitan operates eight offices in Nashville and Memphis, Tennessee and the Jackson, Mississippi MSA. As of March 31, 2017, Metropolitan had approximately $1.2 billion in total assets, which included approximately $929.7 million in total loans and approximately $945.1 million in total deposits.

On February 22, 2017, the Company redeemed $10.3 million in subordinated debentures for an aggregate amount of $10.5 million, which included a prepayment penalty of $205 thousand. Prior to the redemption, the Company obtained all required board and regulatory approval.

"The first quarter of 2017 was an active quarter for our Company, and we are very pleased to report excellent results. Our results for the first quarter of 2017 include a record quarterly net income and a continuation of increasing profitability metrics as our return on average tangible assets was 1.23%," said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "In January, we announced our proposed acquisition of Metropolitan, which will expand our presence in Mississippi and Tennessee. We have received all federal bank regulatory approvals necessary to complete the proposed merger and are now focusing on securing the required approval of Metropolitan shareholders. Both Metropolitan and we have experienced positive reaction from our clients and associates in response to our proposed acquisition."

First quarter of 2017 highlights include the following:

Profitability Metrics

Total assets were $8.8 billion at March 31, 2017, as compared to $8.7 billion at December 31, 2016, and $8.1 billion at March 31, 2016.

Total loans increased $36.3 million to $6.2 billion at March 31, 2017, from December 31, 2016; total loans were $5.6 billion at March 31, 2016. Loans not acquired increased $123.7 million to $4.8 billion at March 31, 2017 from December 31, 2016, which represents an annualized growth rate of 10.65%. For the first quarter of 2017, the yield on total loans was 4.82% compared to 5.07% for the fourth quarter of 2016 and 4.93% for the first quarter of 2016. The following table reconciles the reported loan yield to the adjusted loan yield excluding the impact from interest income collected on problem loans and purchase accounting adjustments on acquired loans for the periods presented (in thousands):

	Three Months Ended
	March 31,		December 31,		March 31,
	2017		2016		2016
Taxable equivalent interest income on loans (as reported)	$	73,710	$	78,267	$	67,223
Net interest income collected on problem loans	567		1,971		622
Accretable yield recognized on purchased loans⁽¹⁾	5,604		8,092		6,097
Interest income on loans (adjusted)	$	67,539	$	68,204	$	60,504

Average loans	$	6,198,705	$	6,147,077	$	5,482,167

Loan yield, as reported	4.82%		5.07%		4.93%
Loan yield, adjusted	4.42%		4.41%		4.44%



⁽¹⁾	Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from acquired loans of $2,741, $4,728 and $1,871 for the three months ended March 31, 2017, December 31, 2016, and March 31, 2016, respectively, which increased loan yield by 18 basis points, 30 basis points and 13 basis points for the same periods, respectively.

Total deposits increased to $7.2 billion at March 31, 2017, from $7.1 billion at December 31, 2016, and $6.4 billion at March 31, 2016. Noninterest-bearing deposits averaged $1.6 billion, or 21.83% of average deposits, for the first quarter of 2017, compared to $1.3 billion, or 20.99% of average deposits, for the same period in 2016. For the first quarter of 2017, the cost of total deposits was 29 basis points, as compared to 28 basis points for the fourth quarter of 2016 and 25 basis points for the first quarter of 2016.

Net interest income was $74.0 million for the first quarter of 2017, as compared to $78.0 million for the fourth quarter of 2016 and $70.1 million for the first quarter of 2016. Net interest margin was 4.01% for the first quarter of 2017, as compared to 4.24% for the fourth quarter of 2016 and 4.21% for the first quarter of 2016. The following table reconciles reported net interest margin to adjusted net interest margin excluding the impact from interest income collected on problem loans and purchase accounting adjustments on loans for the periods presented (in thousands):

	Three Months Ended
	March 31,		December 31,		March 31,
	2017		2016		2016
Taxable equivalent net interest income (as reported)	$	75,907	$	79,774	$	71,804
Net interest income collected on problem loans	567		1,971		622
Accretable yield recognized on purchased loans ⁽¹⁾	5,604		8,092		6,097
Net interest income (adjusted)	$	69,736	$	69,711	$	65,085

Average earning assets	$	7,668,582	$	7,483,222	$	6,863,905

Net interest margin, as reported	4.01%		4.24%		4.21%
Net interest margin, adjusted	3.69%		3.71%		3.81%



⁽¹⁾	Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from acquired loans of $2,741, $4,728 and $1,871 for the three months ended March 31, 2017, December 31, 2016, and March 31, 2016, respectively, which increased net interest margin by 14 basis points, 25 basis points and 11 basis points for the same periods, respectively.

Included in net interest margin is the impact from excess cash generated from the increase in average deposits during the first quarter of 2017. This excess cash was included in short-term investments and reduced our net interest margin by 10 basis points when compared to the fourth quarter of 2016.

Noninterest income for the first quarter of 2017 was $32.0 million, as compared to $30.3 million for the fourth quarter of 2016 and $33.3 million for the first quarter of 2016. Mortgage banking income was $10.5 million for the first quarter of 2017, as compared to $8.3 million for the fourth quarter of 2016 and $11.9 million for the first quarter of 2017.

Noninterest expense was $69.3 million for the first quarter of 2017, as compared to $71.6 million for the fourth quarter of 2016 and $69.8 million for the first quarter of 2016. Excluding nonrecurring charges for merger and conversion expenses and debt prepayment penalties, noninterest expense remained relatively flat when compared to the first quarter of 2016.

The following table presents the Company's profitability metrics for the quarter ending March 31, 2017, including and excluding the impact of after-tax merger and conversion expenses:

	As Reported	Excluding Merger and Conversion Expenses and Debt Prepayment Penalties
Return on average assets	1.11%	1.13%
Return on average tangible assets	1.23%	1.25%
Return on average equity	7.80%	7.92%
Return on average tangible equity	13.48%	13.68%

Asset Quality Metrics
Total nonperforming assets were $56.5 million at March 31, 2017, a decrease of $2.3 million from December 31, 2016, and a decrease of $21.1 million from March 31, 2016, and consisted of $35.2 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $21.3 million in OREO.

The Company's nonperforming loans and OREO that were purchased in previous acquisitions (collectively referred to as "acquired nonperforming assets") were $20.4 million and $16.3 million, respectively, at March 31, 2017, as compared to $22.2 million and $17.4 million, respectively, at December 31, 2016, and $30.2 million and $20.4 million, respectively, at March 31, 2016. 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 increased to $14.8 million, or 0.31% of total non-acquired loans, at March 31, 2017, from $13.4 million, or 0.28% of total non-acquired loans, at December 31, 2016. These loans were $14.2 million, or 0.35% of total non-aquired loans, at March 31, 2016. Early stage delinquencies, or loans 30-to-89 days past due, as a percentage of total loans were 0.16% at March 31, 2017, as compared to 0.23% at December 31, 2016, and at 0.17% March 31, 2016.

Non-acquired OREO was $5.1 million at March 31, 2017, as compared to $5.9 million at December 31, 2016, and $12.8 million at March 31, 2016. Non-acquired OREO sales totaled $1.2 million in the first quarter of 2017 and $5.8 million over the final three quarters of 2016.

The allowance for loan losses represents 0.69% of total loans at both March 31, 2017, and December 31, 2016, and 0.77% at March 31, 2016. The allowance for loan losses represents 0.89% of nonaquired loans at March 31, 2017, as compared to 0.91% at December 31, 2016, and 1.05% at March 31, 2016

- Net loan charge-offs were $1.3 million, or 0.09% of average total loans, for the first quarter of 2017, as compared to $4.8 million, or 0.31% of average total loans, for the fourth quarter of 2016 and $1.4 million, or 0.10% of average total loans, for the first quarter of 2016. The decrease quarter over quarter is attributable to the final resolution of several problem credits in the fourth quarter of 2016.

- Provision for loan losses was $1.5 million for the first quarter of 2017, as compared to $1.7 million for the fourth quarter of 2016 and $1.8 million for the first quarter of 2016.

Capital Metrics

At March 31, 2017, Tier 1 leverage capital ratio was 10.39%, Common Equity Tier 1 ratio was 11.69%, Tier 1 risk-based capital ratio was 12.93%, and total risk-based capital ratio was 15.11%. All regulatory ratios exceed the minimums required to be considered "well-capitalized."

Tangible common equity ratio was 9.16% at March 31, 2017, as compared to 9.00% at December 31, 2016.

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, April 26, 2017.

The webcast can be accessed through Renasant's investor relations website at www.renasant.comor http://services.choruscall.com/links/rnst170426.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation First 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 10105028 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until May 10, 2017.

ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 113-year-old financial services institution. Renasant has assets of approximately $8.8 billion and operates more than 170 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama, Florida and Georgia.

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

Prospective investors are cautioned that any such forward-looking statements are not guarantees for future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include significant fluctuations in interest rates, inflation, economic recession, significant changes in the federal and state legal and regulatory environment, significant underperformance in 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.

The Company's management uses certain non-GAAP financial measures to adjust GAAP financial measures to exclude purchase accounting adjustments and interest income collected, net of interest foregone, on problem loans from loan interest income when calculating the Company's taxable equivalent loan yields and net interest margin, respectively. Management uses these non-GAAP financial measures to evaluate ongoing operating results and to assess ongoing profitability. The reconciliations from GAAP to non-GAAP for these financial measures are included with the presentation of the non-GAAP financial measure itself.

Certain other non-GAAP financial measures that adjust GAAP financial measures to exclude intangible assets as well as merger and conversion expenses, debt prepayment penalties and other charges that the Company considers to be non-recurring in nature. These non-GAAP financial measures 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 Company's management uses these non-GAAP financial measures to evaluate net income from our ongoing business and capital utilization. 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."

The Company also believes that all of the foregoing 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 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.

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
												Q1 2017 -	For The Three Months Ending
		2017		2016								Q4 2016	March 31,
		First		Fourth		Third		Second		First		Percent							Percent
		Quarter		Quarter		Quarter		Quarter		Quarter		Variance	2017			2016			Variance
Statement of earnings
Interest income - taxable equivalent basis		$	83,781	$	87,564	$	84,786	$	85,783	$	78,009	(4.32)	$	83,781		$	78,009		7.40
Interest income		$	81,889	$	85,840	$	83,032	$	84,008	$	76,259	(4.60)	$	81,889		$	76,259		7.38
Interest expense		7,874		7,791		7,301		6,851		6,205		1.07	7,874			6,205			26.90
	Net interest income	74,015		78,049		75,731		77,157		70,054		(5.17)	74,015			70,054			5.65
Provision for loan losses		1,500		1,650		2,650		1,430		1,800		(9.09)	1,500			1,800			(16.67)
	Net interest income after provision	72,515		76,399		73,081		75,727		68,254		(5.08)	72,515			68,254			6.24
Service charges on deposit accounts		7,931		8,163		8,200		7,521		7,991		(2.84)	7,931			7,991			(0.75)
Fees and commissions on loans and deposits		5,199		4,772		4,921		4,877		4,244		8.95	5,199			4,244			22.50
Insurance commissions and fees		1,860		1,951		2,420		2,175		1,962		(4.66)	1,860			1,962			(5.20)
Wealth management revenue		2,884		2,849		3,040		2,872		2,891		1.23	2,884			2,891			(0.24)
Securities gains (losses)		—		—		—		1,257		(71)		—	—			(71)			(100.00)
Mortgage banking income		10,504		8,262		15,846		13,420		11,915		27.14	10,504			11,915			(11.84)
Other		3,643		4,258		3,845		3,464		4,370		(14.44)	3,643			4,370			(16.64)
	Total noninterest income	32,021		30,255		38,272		35,586		33,302		5.84	32,021			33,302			(3.85)
Salaries and employee benefits		42,209		39,966		44,702		45,387		42,393		5.61	42,209			42,393			(0.43)
Data processing		4,234		4,503		4,560		4,502		4,158		(5.97)	4,234			4,158			1.83
Occupancy and equipment		9,319		8,809		8,830		8,531		8,224		5.79	9,319			8,224			13.31
Other real estate		533		1,585		1,540		1,614		957		(66.37)	533			957			(44.31)
Amortization of intangibles		1,563		1,624		1,684		1,742		1,697		(3.76)	1,563			1,697			(7.90)
Merger and conversion related expenses		345		—		268		2,807		948		100.00	345			948			(63.61)
Debt extinguishment penalty		205		—		2,210		329		—		100.00	205			—			100.00
Loss share termination		—		2,053		—		—		—		(100.00)	—			—			—
Other		10,901		13,018		12,674		12,347		11,437		(16.26)	10,901			11,437			(4.69)
	Total noninterest expense	69,309		71,558		76,468		77,259		69,814		(3.14)	69,309			69,814			(0.72)
Income before income taxes		35,227		35,096		34,885		34,054		31,742		0.37	35,227			31,742			10.98
Income taxes		11,255		11,461		11,706		11,154		10,526		(1.80)	11,255			10,526			6.93
	Net income	$	23,972	$	23,635	$	23,179	$	22,900	$	21,216	1.43	$	23,972		$	21,216		12.99
Basic earnings per share		$	0.54	$	0.56	$	0.55	$	0.54	$	0.53	(3.57)	$	0.54		$	0.53		1.89
Diluted earnings per share		0.54		0.55		0.55		0.54		0.52		(1.82)	0.54			0.52			3.85
Average basic shares outstanding		44,364,337		42,441,588		42,091,164		42,066,168		40,324,475		4.53	44,364,337			40,324,475			10.02
Average diluted shares outstanding		44,480,499		42,636,325		42,310,358		42,303,626		40,559,145		4.33	44,480,499			40,559,145			9.67
Common shares outstanding		44,394,707		44,332,273		42,102,224		42,085,690		40,373,753		0.14	44,394,707			40,373,753			9.96
Cash dividend per common share		$	0.18	$	0.18	$	0.18	$	0.18	$	0.17	—	$	0.18		$	0.17		5.88
Performance ratios
Return on avg shareholders' equity		7.8%		8.14%		8.12%		8.21%		8.12%			7.8		%	8.12		%
Return on avg tangible s/h's equity (1)		13.48%		14.9%		15.15%		15.57%		15.58%			13.48		%	15.58		%
Return on avg assets		1.11%		1.09%		1.08%		1.08%		1.07%			1.11		%	1.07		%
Return on avg tangible assets (2)		1.23%		1.22%		1.2%		1.2%		1.2%			1.23		%	1.2		%
Net interest margin (FTE)		4.01%		4.24%		4.15%		4.29%		4.21%			4.01		%	4.21		%
Yield on earning assets (FTE)		4.43%		4.66%		4.54%		4.66%		4.57%			4.43		%	4.57		%
Cost of funding		0.43%		0.42%		0.4%		0.38%		0.37%			0.43		%	0.37		%
Average earning assets to average assets		87.55%		87.1%		86.82%		86.59%		86.21%			87.55		%	86.21		%
Average loans to average deposits		86.81%		88.89%		89.4%		87.73%		87.39%			86.81		%	87.39		%
Noninterest income (less securities gains/
	losses) to average assets	1.48%		1.4%		1.78%		1.62%		1.69%			1.48		%	1.69		%
Noninterest expense (less debt prepayment penalties/
	merger-related expenses) to average assets	3.18%		3.22%		3.44%		3.49%		3.48%			3.18		%	3.48		%
Net overhead ratio		1.7%		1.82%		1.66%		1.87%		1.79%			1.7		%	1.79		%
Efficiency ratio (FTE) (4)		62.26%		61.69%		62.46%		63.91%		63.86%			62.26		%	63.86		%

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																	Q1 2017	For The Three Months Ending
		2017			2016												Q4 2016	March 31,
		First			Fourth			Third			Second			First			Percent							Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Variance	2017			2016			Variance
Average Balances
Total assets		$	8,759,448		$	8,591,795		$	8,562,199		$	8,541,818		$	7,961,700		1.95	$	8,759,448		$	7,961,700		10.02
Earning assets		7,668,582			7,483,222			7,433,461			7,396,283			6,863,905			2.48	7,668,582			6,863,905			11.72
Securities		1,043,697			1,034,270			1,045,905			1,111,831			1,103,504			0.91	1,043,697			1,103,504			(5.42)
Mortgage loans held for sale		112,105			184,583			241,314			306,011			217,200			(39.27)	112,105			217,200			(48.39)
Loans, net of unearned		6,198,705			6,147,077			6,048,017			5,897,650			5,482,167			0.84	6,198,705			5,482,167			13.07
Intangibles		493,816			495,404			497,064			499,503			473,852			(0.32)	493,816			473,852			4.21
Noninterest-bearing deposits		$	1,558,809		$	1,564,150		$	1,510,309		$	1,477,380		$	1,316,495		(0.34)	$	1,558,809		$	1,316,495		18.41
Interest-bearing deposits		5,581,853			5,351,354			5,255,102			5,245,406			4,956,983			4.31	5,581,853			4,956,983			12.61
Total deposits		7,140,662			6,915,505			6,765,411			6,722,786			6,273,478			3.26	7,140,662			6,273,478			13.82
Borrowed funds		282,008			412,589			550,222			594,459			539,078			(31.65)	282,008			539,078			(47.69)
Shareholders' equity		1,246,903			1,155,749			1,135,073			1,121,298			1,050,668			7.89	1,246,903			1,050,668			18.68


																	Q1 2017 -	As of
		2017			2016												Q4 2016	March 31,
		First			Fourth			Third			Second			First			Percent							Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Variance	2017			2016			Variance
Balances at period end
Total assets		$	8,764,711		$	8,699,851		$	8,542,471		$	8,529,566		$	8,146,229		0.75	$	8,764,711		$	8,146,229		7.59
Earning assets		7,690,045			7,556,760			7,409,068			7,396,888			7,045,179			1.76	7,690,045			7,045,179			9.15
Securities		1,044,862			1,030,530			1,039,957			1,063,592			1,101,820			1.39	1,044,862			1,101,820			(5.17)
Mortgage loans held for sale		158,619			177,866			189,965			276,782			298,365			(10.82)	158,619			298,365			(46.84)
Loans not acquired		4,834,085			4,710,385			4,526,026			4,292,549			4,074,413			2.63	4,834,085			4,074,413			18.64
Loans acquired and covered by FDIC loss-share agreements		—			—			30,533			42,171			44,989			—	—			44,989			(100.00)
Loans acquired and not covered by FDIC loss-share agreements		1,401,720			1,489,137			1,548,674			1,630,709			1,453,328			(5.87)	1,401,720			1,453,328			(3.55)
	Total loans	6,235,805			6,199,522			6,105,233			5,965,429			5,572,730			0.59	6,235,805			5,572,730			11.90
Intangibles		493,045			494,608			496,233			497,917			476,539			(0.32)	493,045			476,539			3.46
Noninterest-bearing deposits		$	1,579,581		$	1,561,357		$	1,514,820		$	1,459,383		$	1,384,503		1.17	$	1,579,581		$	1,384,503		14.09
Interest-bearing deposits		5,651,269			5,497,780			5,302,978			5,243,104			5,046,874			2.79	5,651,269			5,046,874			11.98
	Total deposits	7,230,850			7,059,137			6,817,798			6,702,487			6,431,377			2.43	7,230,850			6,431,377			12.43
Borrowed funds		202,006			312,135			469,580			588,650			561,671			(35.28)	202,006			561,671			(64.03)
Shareholders' equity		1,251,065			1,232,883			1,142,247			1,124,256			1,053,178			1.47	1,251,065			1,053,178			18.79
Market value per common share		$	39.69		$	42.22		$	33.63		$	32.33		$	32.91		(5.99)	$	39.69		$	32.91		20.60
Book value per common share		28.18			27.81			27.13			26.71			26.09			1.33	28.18			26.09			8.03
Tangible book value per common share		17.07			16.65			15.34			14.88			14.28			2.53	17.07			14.28			19.55
Shareholders' equity to assets (actual)		14.27		%	14.17		%	13.37		%	13.18		%	12.93		%		14.27		%	12.93		%
Tangible capital ratio (3)		9.16		%	9		%	8.03		%	7.8		%	7.52		%		9.16		%	7.52		%
Leverage ratio		10.39		%	10.59		%	9.38		%	9.18		%	9.19		%		10.39		%	9.19		%
Common equity tier 1 capital ratio		11.69		%	11.48		%	10.16		%	10.12		%	9.88		%		11.69		%	9.88		%
Tier 1 risk-based capital ratio		12.93		%	12.86		%	11.57		%	11.55		%	11.38		%		12.93		%	11.38		%
Total risk-based capital ratio		15.11		%	15.03		%	13.84		%	12.31		%	12.17		%		15.11		%	12.17		%

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																Q1 2017 -	As of
	2017			2016												Q4 2016	March 31,
	First			Fourth			Third			Second			First			Percent							Percent
	Quarter			Quarter			Quarter			Quarter			Quarter			Variance	2017			2016			Variance
Loans not acquired
Commercial, financial, agricultural	$	626,237		$	589,290		$	554,151		$	530,258		$	520,463		6.27	$	626,237		$	520,463		20.32
Lease Financing	47,816			46,841			45,510			43,116			41,937			2.08	47,816			41,937			14.02
Real estate- construction	378,061			483,926			415,934			381,690			325,188			(21.88)	378,061			325,188			16.26
Real estate - 1-4 family mortgages	1,485,663			1,422,543			1,388,066			1,328,948			1,263,879			4.44	1,485,663			1,263,879			17.55
Real estate - commercial mortgages	2,203,639			2,075,137			2,030,626			1,918,778			1,836,053			6.19	2,203,639			1,836,053			20.02
Installment loans to individuals	92,669			92,648			91,739			89,759			86,893			0.02	92,669			86,893			6.65
Loans, net of unearned	$	4,834,085		$	4,710,385		$	4,526,026		$	4,292,549		$	4,074,413		2.63	$	4,834,085		$	4,074,413		18.64
Loans acquired and covered by FDIC loss-share agreements
Commercial, financial, agricultural	$	—		$	—		$	14		$	607		$	624		—	$	—		$	624		—
Lease Financing	—			—			—			—			—			—	—			—			—
Real estate- construction	—			—			—			83			86			—	—			86			—
Real estate - 1-4 family mortgages	—			—			30,304			34,640			36,350			—	—			36,350			—
Real estate - commercial mortgages	—			—			180			6,790			7,870			—	—			7,870			—
Installment loans to individuals	—			—			35			51			59			—	—			59			—
Loans, net of unearned	$	—		$	—		$	30,533		$	42,171		$	44,989		—	$	—		$	44,989		—
Loans acquired and not covered by FDIC loss-share agreements
Commercial, financial, agricultural	$	115,229		$	128,200		$	139,961		$	152,071		$	133,847		(10.12)	$	115,229		$	133,847		(13.91)
Lease Financing	—			—			—			—			—			—	—			—			—
Real estate- construction	35,673			68,753			71,704			70,958			52,300			(48.11)	35,673			52,300			(31.79)
Real estate - 1-4 family mortgages	431,904			452,447			452,274			485,458			477,266			(4.54)	431,904			477,266			(9.50)
Real estate - commercial mortgages	804,790			823,758			864,825			898,108			763,587			(2.30)	804,790			763,587			5.40
Installment loans to individuals	14,124			15,979			19,910			24,114			26,328			(11.61)	14,124			26,328			(46.35)
Loans, net of unearned	$	1,401,720		$	1,489,137		$	1,548,674		$	1,630,709		$	1,453,328		(5.87)	$	1,401,720		$	1,453,328		(3.55)
Asset quality data
Assets not acquired:
Nonaccrual loans	$	12,629		$	11,273		$	12,454		$	10,591		$	11,690		12.03	$	12,629		$	11,690		8.03
Loans 90 past due or more	2,175			2,079			2,315			1,428			2,495			4.62	2,175			2,495			(12.83)
Nonperforming loans	14,804			13,352			14,769			12,019			14,185			10.87	14,804			14,185			4.36
Other real estate owned	5,056			5,929			8,429			9,575			12,810			(14.72)	5,056			12,810			(60.53)
Nonperforming assets not acquired	$	19,860		$	19,281		$	23,198		$	21,594		$	26,995		3.00	$	19,860		$	26,995		(26.43)
Assets acquired and subject to loss share:
Nonaccrual loans	$	—		$	—		$	1,628		$	2,060		$	2,708		—	$	—		$	2,708		—
Loans 90 past due or more	—			—			786			2,076			4,343			—	—			4,343			—
Nonperforming loans	—			—			2,414			4,136			7,051			—	—			7,051			—
Other real estate owned	—			—			926			2,618			1,373			—	—			1,373			—
Nonperforming assets acquired and subject to loss share	$	—		$	—		$	3,340		$	6,754		$	8,424		—	$	—		$	8,424		—
Assets acquired and not subject to loss share:
Nonaccrual loans	$	8,495		$	11,347		$	12,105		$	13,312		$	12,368		(25.13)	$	8,495		$	12,368		(31.31)
Loans 90 past due or more	11,897			10,815			12,619			13,650			10,805			10.00	11,897			10,805			10.11
Nonperforming loans	20,392			22,162			24,724			26,962			23,173			(7.99)	20,392			23,173			(12.00)
Other real estate owned	16,266			17,370			16,973			17,146			19,051			(6.36)	16,266			19,051			(14.62)
Nonperforming assets acquired	$	36,658		$	39,532		$	41,697		$	44,108		$	42,224		7.27	$	36,658		$	42,224		(13.18)
Net loan charge-offs (recoveries)	$	1,314		$	4,837		$	824		$	191		$	1,378		(72.83)	$	1,314		$	1,378		(4.64)
Allowance for loan losses	$	42,923		$	42,737		$	45,924		$	44,098		$	42,859		0.44	$	42,923		$	42,859		0.15
Annualized net loan charge-offs / average loans	0.09		%	0.31		%	0.05		%	0.01		%	0.1		%		0.09		%	0.1		%
Nonperforming loans / total loans*	0.56		%	0.57		%	0.69		%	0.72		%	0.8		%		0.56		%	0.8		%
Nonperforming assets / total assets*	0.64		%	0.68		%	0.8		%	0.85		%	0.95		%		0.64		%	0.95		%
Allowance for loan losses / total loans*	0.69		%	0.69		%	0.75		%	0.74		%	0.77		%		0.69		%	0.77		%
Allowance for loan losses / nonperforming loans*	121.95		%	120.34		%	109.59		%	102.28		%	96.51		%		121.95		%	96.51		%
Nonperforming loans / total loans**	0.31		%	0.28		%	0.33		%	0.28		%	0.35		%		0.31		%	0.35		%
Nonperforming assets / total assets**	0.23		%	0.22		%	0.27		%	0.25		%	0.33		%		0.23		%	0.33		%
Allowance for loan losses / total loans**	0.89		%	0.91		%	1.01		%	1.03		%	1.05		%		0.89		%	1.05		%
Allowance for loan losses / nonperforming loans**	289.94		%	320.08		%	310.95		%	366.9		%	302.14		%		289.94		%	302.14		%
*Based on all assets (includes acquired assets)
**Excludes all assets acquired

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)


	Three Months Ended
	March 31, 2017						December 31, 2016						March 31, 2016
	Average		Interest		Yield/		Average		Interest		Yield/		Average		Interest		Yield/
	Balance		Income/		Rate		Balance		Income/		Rate		Balance		Income/		Rate
			Expense						Expense						Expense
Assets
Interest-earning assets:
Loans
Not purchased	$	4,752,628	$	51,143	4.4	%	$	4,612,237	$	50,073	4.3	%	$	3,939,690	$	43,154	4.4	%
Purchased	1,446,077		22,567		6.3		1,513,122		27,808		7.3		1,458,167		22,934		6.3
Purchased and covered⁽¹⁾	—		—		—		21,718		386		7.1		84,310		1,135		5.4
Total loans	6,198,705		73,710		4.8		6,147,077		78,267		5.1		5,482,167		67,223		4.9
Mortgage loans held for sale	112,105		1,148		4.2		184,583		1,627		3.5		217,200		2,372		4.4
Securities:
Taxable⁽²⁾	704,805		4,070		2.3		688,268		3,430		2		748,516		4,136		2.2
Tax-exempt	338,892		4,297		5.1		346,002		4,089		4.7		354,988		4,206		4.8
Total securities	1,043,697		8,367		3.3		1,034,270		7,519		2.9		1,103,504		8,342		3
Interest-bearing balances with banks	314,075		556		0.7		117,292		151		0.5		61,034		72		0.5
Total interest-earning assets	7,668,582		83,781		4.4		7,483,222		87,564		4.7		6,863,905		78,009		4.6
Cash and due from banks	131,874						118,851						138,389
Intangible assets	493,816						495,404						473,852
FDIC loss-share indemnification asset	—						2,693						6,407
Other assets	465,176						491,625						479,147
Total assets	$	8,759,448					$	8,591,795					$	7,961,700
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand⁽³⁾	3,410,606		1,813		0.2		3,184,949		1,597		0.2		2,956,050		1,341		0.2
Savings deposits	553,985		96		0.1		538,323		96		0.1		507,909		89		0.1
Time deposits	1,617,262		3,240		0.8		1,628,082		3,145		0.8		1,493,024		2,530		0.7
Total interest-bearing deposits	5,581,853		5,149		0.4		5,351,354		4,838		0.4		4,956,983		3,960		0.3
Borrowed funds	282,008		2,725		3.9		412,589		2,952		2.9		539,078		2,245		1.7
Total interest-bearing liabilities	5,863,861		7,874		0.5		5,763,943		7,790		0.5		5,496,061		6,205		0.5
Noninterest-bearing deposits	1,558,809						1,564,150						1,316,495
Other liabilities	89,875						107,953						98,476
Shareholders' equity	1,246,903						1,155,749						1,050,668
Total liabilities and shareholders' equity	$	8,759,448					$	8,591,795					$	7,961,700
Net interest income/ net interest margin			$	75,907	4	%			$	79,774	4.2	%			$	71,804	4.2	%

⁽¹⁾Represents information associated with purchased loans covered under loss sharing agreements prior to their termination on December 8, 2016.

⁽²⁾U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which we operate.

⁽³⁾Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
					RECONCILIATION OF GAAP TO NON-GAAP
																	Three Months Ended
		2017			2016												March 31,
		First			Fourth			Third			Second			First
		Quarter			Quarter			Quarter			Quarter			Quarter			2017			2016
Net income (GAAP)		$	23,972		$	23,635		$	23,179		$	22,900		$	21,216		$	23,972		$	21,216
	Amortization of intangibles, net of tax	1,064			1,094			1,119			1,171			1,134			1,064			1,134
Tangible net income (non-GAAP)		$	25,036		$	24,729		$	24,298		$	24,071		$	22,350		$	25,036		$	22,350

Average shareholders' equity (GAAP)		$	1,246,903		$	1,155,749		$	1,135,073		$	1,121,298		$	1,050,668		$	1,246,903		$	1,050,668
	Intangibles	493,816			495,404			497,064			499,503			473,852			493,816			473,852
Average tangible s/h's equity (non-GAAP)		$	753,087		$	660,345		$	638,009		$	621,795		$	576,816		$	753,087		$	576,816

Average total assets (GAAP)		$	8,759,448		$	8,591,795		$	8,562,199		$	8,541,818		$	7,961,700		$	8,759,448		$	7,961,700
	Intangibles	493,816			495,404			497,064			499,503			473,852			493,816			473,852
Average tangible assets (non-GAAP)		$	8,265,632		$	8,096,391		$	8,065,135		$	8,042,315		$	7,487,848		$	8,265,632		$	7,487,848

Actual shareholders' equity (GAAP)		$	1,251,065		$	1,232,883		$	1,142,247		$	1,124,256		$	1,053,178		$	1,251,065		$	1,053,178
	Intangibles	493,045			494,608			496,233			497,917			476,539			493,045			476,539
Actual tangible s/h's equity (non-GAAP)		$	758,020		$	738,275		$	646,014		$	626,339		$	576,639		$	758,020		$	576,639

Actual total assets (GAAP)		$	8,764,711		$	8,699,851		$	8,542,471		$	8,529,566		$	8,146,229		$	8,767,411		$	8,146,229
	Intangibles	493,045			494,608			496,233			497,917			476,539			493,045			476,539
Actual tangible assets (non-GAAP)		$	8,271,666		$	8,205,243		$	8,046,238		$	8,031,649		$	7,669,690		$	8,271,666		$	7,669,690

(1) Return on Average Equity
Return on avg s/h's equity (GAAP)		7.8		%	8.14		%	8.12		%	8.21		%	8.12		%	7.8		%	8.12		%
	Effect of adjustment for intangible assets	5.69		%	6.76		%	7.03		%	7.36		%	7.46		%	5.69		%	7.46		%
Return on avg tangible s/h's equity (non-GAAP)		13.48		%	14.9		%	15.15		%	15.57		%	15.58		%	13.48		%	15.58		%

(2) Return on Average Assets
Return on (average) assets (GAAP)		1.11		%	1.09		%	1.08		%	1.08		%	1.07		%	1.11		%	1.07		%
	Effect of adjustment for intangible assets	0.12		%	0.12		%	0.12		%	0.13		%	0.13		%	0.12		%	0.13		%
Return on average tangible assets (non-GAAP)		1.23		%	1.22		%	1.2		%	1.2		%	1.2		%	1.23		%	1.2		%

(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP)		14.27		%	14.17		%	13.37		%	13.18		%	12.93		%	14.27		%	12.93		%
	Effect of adjustment for intangible assets	5.11		%	5.17		%	5.34		%	5.38		%	5.41		%	5.11		%	5.41		%
Tangible capital ratio (non-GAAP)		9.16		%	9		%	8.03		%	7.8		%	7.52		%	9.16		%	7.52		%

					CALCULATION OF EFFICIENCY RATIO

Interest income (FTE)		$	83,781		$	87,564		$	84,786		$	85,783		$	78,009		$	83,781		$	78,009
	Interest expense	7,874			7,791			7,301			6,851			6,205			7,874			6,205
Net Interest income (FTE)		$	75,907		$	79,773		$	77,485		$	78,932		$	71,804		$	75,907		$	71,804

Total noninterest income		$	32,021		$	30,255		$	38,272		$	35,586		$	33,302		$	32,021		$	33,302
	Securities gains (losses)	—			—			—			1,257			(71)			—			(71)
Total noninterest income		$	32,021		$	30,255		$	38,272		$	34,329		$	33,373		$	32,021		$	33,373
Total Income (FTE)		$	107,928		$	110,028		$	115,757		$	113,261		$	105,177		$	107,928		$	105,177

Total noninterest expense		$	69,309		$	71,558		$	76,468		$	77,259		$	69,814		$	69,309		$	69,814
	Amortization of intangibles	1,563			1,624			1,684			1,742			1,697			1,563			1,697
	Merger-related expenses	345			—			268			2,807			948			345			948
	Debt extinguishment penalty	205			—			2,210			329			—			205			—
	Loss share termination	$	—		$	2,053		$	—		$	—		$	—		$	—		$	—
Total noninterest expense		$	67,196		$	67,881		$	72,306		$	72,381		$	67,169		$	67,196		$	67,169

(4) Efficiency Ratio		62.26		%	61.69		%	62.46		%	63.91		%	63.86		%	62.26		%	63.86		%

Contacts:	For Media:	For Financials:
	John Oxford	Kevin Chapman
	Vice President	Executive Vice President
	Director of External Affairs	Chief Financial Officer
	(662) 680-1219	(662) 680-1450
	joxford@renasant.com	kchapman@renasant.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/renasant-corporation-announces-2017-first-quarter-earnings-300445604.html

SOURCE Renasant Corporation

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