Renasant Corporation Announces Record Earnings For The Second Quarter Of 2018

July 17, 2018

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

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

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

Impact of Certain Expenses and Charges

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

	Three months ended June 30, 2018						Three months ended June 30, 2017
	Pre-tax		After-tax		Impact to Diluted EPS		Pre-tax		After-tax		Impact to Diluted EPS
Merger and conversion expenses	$	500	$	389	$	0.01	$	3,044	$	2,065	$	0.04



	Six months ended June 30, 2018						Six months ended June 30, 2017
	Pre-tax		After-tax		Impact to Diluted EPS		Pre-tax		After-tax		Impact to Diluted EPS
Merger and conversion expenses	$	1,400	$	1,090	$	0.02	$	3,389	$	2,302	$	0.05
Debt prepayment penalty	—		—		—		205		139		—

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

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

Profitability Metrics

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

	Three Months Ended				Six Months Ended
	June 30, 2018				June 30, 2018
	As Reported		Excluding merger and conversion expenses		As Reported		Excluding merger and conversion expenses
Return on average assets	1.43	%	1.44	%	1.40	%	1.42	%
Return on average tangible assets	1.57	%	1.59	%	1.54	%	1.57	%
Return on average equity	9.55	%	9.65	%	9.28	%	9.42	%
Return on average tangible equity	16.75	%	16.92	%	16.39	%	16.63	%

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

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

Total assets were $10.5 billion at June 30, 2018, as compared to $9.8 billion at December 31, 2017.
Total loans increased to $7.8 billion at June 30, 2018, from $7.6 billion at December 31, 2017, which represents an annual linked quarter growth rate of approximately 4%. Loans not purchased increased to $6.1 billion at June 30, 2018, from $5.6 billion at December 31, 2017. The following table presents reported taxable equivalent yield on loans for the periods presented (in thousands).

	Three Months Ended
	June 30,			March 31,			June 30,
	2018			2018			2017
Taxable equivalent interest income on loans	$	97,045		$	93,373		$	78,857

Average loans	$	7,704,221		$	7,646,991		$	6,293,497

Loan yield	5.05		%	4.95		%	5.03		%

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

	Three Months Ended
	June 30,			March 31,			June 30,
	2018			2018			2017
Net interest income collected on problem loans	$	1,045		$	358		$	2,745
Accretable yield recognized on purchased loans⁽¹⁾	5,719			6,118			5,410
Total impact to interest income on loans	$	6,764		$	6,476		$	8,155

Impact to loan yield	0.35		%	0.34		%	0.52		%

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

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

	Six Months Ended
	June 30,			June 30,
	2018			2017
Taxable equivalent interest income on loans	$	190,418		$	152,567

Average loans	$	7,675,764		$	6,246,363

Loan yield	5.00		%	4.93		%

	Six Months Ended
	June 30,			June 30,
	2018			2017
Net interest income collected on problem loans	$	1,403		$	3,302
Accretable yield recognized on purchased loans⁽¹⁾	11,837			11,014
Total impact to interest income on loans	$	13,240		$	14,316

Impact to loan yield	0.35		%	0.46		%

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

Total deposits increased to $8.4 billion at June 30, 2018, from $7.9 billion at December 31, 2017. Non-interest bearing deposits averaged $1.8 billion, or 22.31% of average deposits, for the first six months of 2018, compared to $1.6 billion, or 22.17% of average deposits, for the same period in 2017. For the second quarter of 2018, the cost of total deposits was 52 basis points, as compared to 40 basis points for the first quarter of 2018 and 30 basis points in the second quarter of 2017. The cost of total deposits was 46 basis points for the first six months of 2018, as compared to 30 basis for the same time period in 2017. The following tables present the mix and cost of all funding sources for the three and six months ended June 30, 2018 and 2017 as well as for the three months ending March 31, 2018.

	Percentage of Total Average Deposits and Borrowed Funds						Cost of Funds
	Three Months Ending						Three Months Ending
	June 30,		March 31,		June 30,		June 30,		March 31,		June 30,
	2018		2018		2017		2018		2018		2017
Noninterest-bearing demand	21.48	%	21.52	%	21.79	%	—	%	—	%	—	%
Interest-bearing demand	46.63		46.31		45.63		0.54		0.35		0.23
Savings	6.82		6.88		7.70		0.15		0.11		0.07
Time deposits	21.54		21.56		21.72		1.12		1.00		0.83
Borrowed funds	3.53		3.73		3.16		4.27		3.98		4.57
Total deposits and borrowed funds	100.00	%	100.00	%	100.00	%	0.65	%	0.53	%	0.43	%

	Percentage of Total Average Deposits and Borrowed Funds				Cost of Funds
	Six Months Ending				Six Months Ending
	June 30,		June 30,		June 30,		June 30,
	2018		2017		2018		2017
Noninterest-bearing demand	21.50	%	21.39	%	—	%	—	%
Interest-bearing demand	46.48		45.79		0.45		0.22
Savings	6.85		7.58		0.13		0.07
Time deposits	21.55		21.76		1.06		0.82
Borrowed funds	3.62		3.48		4.12		4.22
Total deposits and borrowed funds	100.00	%	100.00	%	0.60	%	0.43	%

Net interest income was $92.4 million for the second quarter of 2018, as compared to $89.2 million for the first quarter of 2018 and $79.6 million for the second quarter of 2017. The following table presents reported net interest margin for the periods presented (in thousands).

	Three Months Ended
	June 30,			March 31,			June 30,
	2018			2018			2017
Taxable equivalent net interest income	$	93,806		$	90,807		$	81,453

Average earning assets	$	9,044,528		$	8,760,679		$	7,657,849

Net interest margin	4.16		%	4.20		%	4.27		%

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

	Three Months Ended
	June 30,			March 31,			June 30,
	2018			2018			2017
Net interest income collected on problem loans	$	1,045		$	358		$	2,745
Accretable yield recognized on purchased loans⁽¹⁾	5,719			6,118			5,410
Total impact to net interest income	$	6,764		$	6,476		$	8,155

Impact to net interest margin	0.30		%	0.30		%	0.43		%

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

Net interest income was $181.6 million for the first six months of 2018, as compared to $153.6 million for the same period in 2017. The following table presents reported net interest margin for the periods presented (in thousands).

	Six Months Ended
	June 30,			June 30,
	2018			2017
Taxable equivalent net interest income	$	184,613		$	157,360

Average earning assets	$	8,903,388		$	7,663,186

Net interest margin	4.18		%	4.14		%

	Six Months Ended
	June 30,			June 30,
	2018			2017
Net interest income collected on problem loans	$	1,403		$	3,302
Accretable yield recognized on purchased loans⁽¹⁾	11,837			11,014
Total impact to net interest income	$	13,240		$	14,316

Impact to net interest margin	0.30		%	0.38		%

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

Noninterest income for the second quarter of 2018 was $35.6 million, as compared to $34.0 million for the first quarter of 2018 and $34.3 million for the second quarter of 2017. Noninterest income for the first six months of 2018 was $69.5 million, as compared to $66.3 million for the same period in 2017. The Company experienced increases in service charges on deposit accounts, fees and commissions on loans and deposits, and wealth management revenue in the first half of 2018 as compared to the same period in 2017. Mortgage banking income for the second quarter of 2018 was $12.8 million, compared to $11.0 million for the first quarter of 2018 and $12.4 million for the second quarter of 2017. Mortgage banking income for the first six months of 2018 was $23.8 million, as compared to $22.9 million for the same period in 2017.
Noninterest expense was $79.0 million for the second quarter of 2018, as compared to $77.9 million for the first quarter of 2018 and $74.8 million for the second quarter of 2017. Noninterest expense for the first six months of 2018 was $157.0 million, as compared to $144.2 million for the same period in 2017.

Asset Quality Metrics

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

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

Excluding purchased loans, nonperforming loans decreased to $11.1 million, or 0.18% of total non-purchased loans, at June 30, 2018, from $13.3 million, or 0.24% of total non-purchased loans, at December 31, 2017. Early stage delinquencies, or loans 30-to-89 days past due, as a percentage of total loans were 0.19% at June 30, 2018, as compared to 0.30% at December 31, 2017.
Excluding purchased OREO, OREO was $4.7 million at June 30, 2018, as compared to $4.4 million at December 31, 2017. OREO sales totaled $1.2 million in the first half of 2018.
The allowance for loan losses was 0.61% of total loans at both June 30, 2018 and December 31, 2017. The allowance for loan losses was 0.78% of non-purchased loans at June 30, 2018, as compared to 0.83% at December 31, 2017.
- Net loan charge-offs were $856 thousand, or 0.04% of average total loans on an annualized basis, for the second quarter of 2018, as compared to $524 thousand, or 0.03% of average total loans on an annualized basis, for the second quarter of 2017.
- The provision for loan losses was $1.8 million for both the second quarter of 2018 and the second quarter of 2017. The provision was $3.6 million for the first six months of 2018, as compared to $3.3 million for the same time period in 2017.

Capital Ratios

At June 30, 2018, Tier 1 leverage capital ratio was 10.65%, Common Equity Tier 1 ratio was 11.71%, Tier 1 risk-based capital ratio was 12.73%, and total risk-based capital ratio was 14.75%. All regulatory ratios exceed the minimums required to be considered "well-capitalized."
Our ratio of shareholders' equity to assets was 14.78% at June 30, 2018, as compared to 15.41% at December 31, 2017. Tangible capital ratio was 9.35% at June 30, 2018, as compared to 9.56% at December 31, 2017.

CONFERENCE CALL INFORMATION:

A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time on Wednesday, July 18, 2018.

The webcast can be accessed through Renasant's investor relations website at www.renasant.comor https://services.choruscall.com/links/rnst180718.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Second Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.

The webcast will be archived on www.renasant.com beginning one hour after the call and will remain accessible for one year. Replays can also be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 10122193 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 1, 2018.

ABOUT RENASANT CORPORATION:

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

NOTE TO INVESTORS:

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

Prospective investors are cautioned that any such forward-looking statements are not guarantees for future performance and involve risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include significant fluctuations in interest rates, inflation, economic recession, significant changes in the federal and state legal and regulatory environment, significant underperformance in the Company's portfolio of outstanding loans, and competition in the Company's markets. Management believes that the assumptions underlying the Company's forward-looking statements are reasonable, but any of the assumptions could prove to be inaccurate. Investors are urged to carefully consider the risks described in the Company's filings with the Securities and Exchange Commission (the "SEC") from time to time, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.renasant.com and the SEC's website at www.sec.gov. The Company expressly disclaims any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

NON-GAAP FINANCIAL MEASURES:

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains non-GAAP financial measures, namely, return on average tangible shareholders' equity, return on average tangible assets, the ratio of tangible equity to tangible assets (commonly referred to as the "tangible capital ratio") and the efficiency ratio. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and certain charges that the Company considers to be non-recurring in nature. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indications of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets, such as goodwill and the core deposit intangible, and non-recurring charges can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution's regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company's results to information provided in other regulatory reports and the results of other companies. Reconciliations of these other non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption "Reconciliation of GAAP to Non-GAAP."

None of the non-GAAP financial information that the Company has included in this release is intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company's calculations may not be comparable to similarly titled measures presented by other companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																					Q2 2018 -	For The Six Months Ending
		2018							2017												Q2 2017	June 30,
			Second			First			Fourth			Third			Second			First			Percent							Percent
			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance	2018			2017			Variance
Statement of earnings
Interest income - taxable equivalent basis			$	107,991		$	101,947		$	107,773		$	102,613		$	89,429		$	83,781		20.76	$	209,938		$	173,210		21.20
Interest income			$	106,574		$	100,380		$	104,587		$	100,695		$	87,579		$	81,889		21.69	$	206,954		$	169,468		22.12
Interest expense			14,185			11,140			11,325			10,678			7,976			7,874			77.85	25,325			15,850			59.78
	Net interest income		92,389			89,240			93,262			90,017			79,603			74,015			16.06	181,629			153,618			18.23
Provision for loan losses			1,810			1,750			2,150			2,150			1,750			1,500			3.43	3,560			3,250			9.54
	Net interest income after provision		90,579			87,490			91,112			87,867			77,853			72,515			16.35	178,069			150,368			18.42
Service charges on deposit accounts			8,271			8,473			8,659			8,676			7,958			7,931			3.93	16,744			15,889			5.38
Fees and commissions on loans and deposits			5,917			5,685			5,647			5,618			5,470			5,199			8.17	11,602			10,669			8.74
Insurance commissions and fees			2,110			2,005			1,955			2,365			2,181			1,860			(3.26)	4,115			4,041			1.83
Wealth management revenue			3,446			3,262			3,000			2,963			3,037			2,884			13.47	6,708			5,921			13.29
Securities gains (losses)			—			—			91			57			—			—			—	—			—			—
Mortgage banking income			12,839			10,960			9,871			10,616			12,424			10,504			3.34	23,799			22,928			3.80
Other			2,998			3,568			3,218			3,118			3,195			3,643			(6.17)	6,566			6,838			(3.98)
	Total noninterest income		35,581			33,953			32,441			33,413			34,265			32,021			3.84	69,534			66,286			4.90
Salaries and employee benefits			52,010			48,784			48,787			48,530			45,014			42,209			15.54	100,794			87,223			15.56
Data processing			4,600			4,244			4,226			4,179			3,835			4,234			19.95	8,844			8,069			9.60
Occupancy and equipment			9,805			9,822			10,153			9,470			8,814			9,319			11.24	19,627			18,133			8.24
Other real estate			232			657			554			603			781			532			(70.29)	889			1,313			(32.29)
Amortization of intangibles			1,594			1,651			1,708			1,766			1,493			1,563			6.76	3,245			3,056			6.18
Merger and conversion related expenses			500			900			723			6,266			3,044			345			(83.57)	1,400			3,389			(58.69)
Debt extinguishment penalty			—			—			—			—			—			205			—	—			205			(100.00)
Other			10,285			11,886			10,657			9,846			11,860			10,902			(13.28)	22,171			22,762			(2.60)
	Total noninterest expense		79,026			77,944			76,808			80,660			74,841			69,309			5.59	156,970			144,150			8.89
Income before income taxes			47,134			43,499			46,745			40,620			37,277			35,227			26.44	90,633			72,504			25.00
Income taxes			10,424			9,673			30,234			14,199			11,993			11,255			(13.08)	20,097			23,248			(13.55)
	Net income		$	36,710		$	33,826		$	16,511		$	26,421		$	25,284		$	23,972		45.19	$	70,536		$	49,256		43.20
Basic earnings per share			$	0.74		$	0.69		$	0.33		$	0.54		$	0.57		$	0.54		29.82	$	1.43		$	1.11		28.83
Diluted earnings per share			0.74			0.68			0.33			0.53			0.57			0.54			29.82	1.42			1.11			27.93
Average basic shares outstanding			49,413,754			49,356,417			49,320,377			49,316,572			44,415,423			44,364,337			11.25	49,385,244			44,390,021			11.25
Average diluted shares outstanding			49,549,761			49,502,950			49,456,289			49,435,225			44,523,541			44,480,499			11.29	49,522,045			44,500,280			11.28
Common shares outstanding			49,424,339			49,392,978			49,321,231			49,320,225			44,430,335			44,394,707			11.24	49,424,339			44,430,335			11.24
Cash dividend per common share			$	0.20		$	0.19		$	0.19		$	0.18		$	0.18		$	0.18		11.11	$	0.39		$	0.36		8.33
Performance ratios
Return on avg shareholders' equity			9.55		%	9.00		%	4.31		%	7.01		%	8.06		%	7.80		%		9.28		%	7.93		%
Return on avg tangible s/h's equity (1)			16.75		%	16.02		%	7.94		%	12.74		%	13.76		%	13.48		%		16.39		%	13.62		%
Return on avg assets			1.43		%	1.36		%	0.64		%	1.02		%	1.16		%	1.11		%		1.40		%	1.14		%
Return on avg tangible assets (2)			1.57		%	1.51		%	0.73		%	1.13		%	1.28		%	1.23		%		1.54		%	1.26		%
Net interest margin (FTE)			4.16		%	4.20		%	4.25		%	4.08		%	4.27		%	4.01		%		4.18		%	4.14		%
Yield on earning assets (FTE)			4.79		%	4.72		%	4.75		%	4.55		%	4.68		%	4.43		%		4.75		%	4.56		%
Cost of funding			0.65		%	0.53		%	0.52		%	0.49		%	0.43		%	0.43		%		0.60		%	0.43		%
Average earning assets to average assets			87.65		%	87.12		%	86.92		%	87.03		%	87.81		%	87.55		%		87.39		%	87.68		%
Average loans to average deposits			91.84		%	94.04		%	93.51		%	90.96		%	88.03		%	86.81		%		92.91		%	87.42		%
Noninterest income (less securities gains/
	losses) to average assets		1.38		%	1.37		%	1.25		%	1.29		%	1.58		%	1.48		%		1.38		%	1.53		%
Noninterest expense (less debt prepayment penalties/
	penalties/merger-related expenses) to
	average assets		3.05		%	3.11		%	2.94		%	2.87		%	3.30		%	3.18		%		3.08		%	3.24		%
Net overhead ratio			1.67		%	1.74		%	1.69		%	1.58		%	1.72		%	1.70		%		1.70		%	1.71		%
Efficiency ratio (FTE) (4)			59.46		%	60.43		%	57.75		%	57.97		%	60.75		%	62.26		%		59.94		%	61.48		%

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																					Q2 2018 -	For The Six Months Ending
		2018							2017												Q2 2017	June 30,
			Second			First			Fourth			Third			Second			First			Percent							Percent
			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance	2018			2017			Variance
Average Balances
Total assets			$	10,319,375		$	10,055,755		$	10,254,774		$	10,277,476		$	8,720,660		$	8,759,448		18.33	$	10,188,293		$	8,739,947		16.57
Earning assets			9,044,528			8,760,679			8,913,675			8,944,067			7,657,849			7,668,582			18.11	8,903,388			7,663,186			16.18
Securities			1,039,947			833,076			1,043,075			1,147,157			1,069,244			1,043,697			(2.74)	937,083			1,056,541			(11.31)
Mortgage loans held for sale			209,652			152,299			188,795			226,512			168,650			112,105			24.31	181,134			140,534			28.89
Loans, net of unearned			7,704,221			7,646,991			7,535,199			7,375,410			6,293,497			6,198,705			22.42	7,675,764			6,246,363			22.88
Intangibles			633,155			634,898			636,533			636,977			492,349			493,816			28.60	634,022			493,078			28.58
Noninterest-bearing deposits			$	1,867,925		$	1,817,848		$	1,877,789		$	1,849,396		$	1,608,467		$	1,558,809		16.13	$	1,843,025		$	1,583,775		16.37
Interest-bearing deposits			6,521,123			6,314,114			6,180,075			6,259,249			5,540,698			5,581,853			17.69	6,418,190			5,561,162			15.41
Total deposits			8,389,048			8,131,962			8,057,864			8,108,645			7,149,165			7,140,662			17.34	8,261,215			7,144,937			15.62
Borrowed funds			306,800			314,228			579,920			575,816			233,542			282,008			31.37	310,493			257,641			20.51
Shareholders' equity			1,542,071			1,523,873			1,518,131			1,495,591			1,258,935			1,246,903			22.49	1,533,022			1,252,952			22.35


																					Q2 2018 -	As of
		2018							2017												Q4 2017	June 30,
			Second			First			Fourth			Third			Second			First			Percent							Percent
			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance	2018			2017			Variance
Balances at period end
Total assets			$	10,544,475		$	10,238,313		$	9,829,981		$	10,323,687		$	8,872,272		$	8,764,711		7.27	$	10,544,475		$	8,872,272		18.85
Earning assets			9,239,200			8,938,117			8,493,741			8,943,570			7,763,775			7,690,045			8.78	9,239,200			7,763,775			19.00
Securities			1,088,779			948,365			671,488			1,150,459			1,076,625			1,044,862			62.14	1,088,779			1,076,625			1.13
Mortgage loans held for sale			245,046			204,472			108,316			207,288			232,398			158,619			126.23	245,046			232,398			5.44
Non purchased loans			6,057,766			5,830,122			5,588,556			5,293,467			5,058,898			4,834,085			8.40	6,057,766			5,058,898			19.74
Purchased loans			1,709,891			1,867,948			2,031,766			2,155,141			1,312,109			1,401,720			(15.84)	1,709,891			1,312,109			30.32
	Total loans		7,767,657			7,698,070			7,620,322			7,448,608			6,371,007			6,235,805			1.93	7,767,657			6,371,007			21.92
Intangibles			632,311			633,905			635,556			637,264			491,552			493,045			(0.51)	632,311			491,552			28.64
Noninterest-bearing deposits			$	1,888,561		$	1,861,136		$	1,840,424		$	1,835,300		$	1,642,863		$	1,579,581		2.62	$	1,888,561		$	1,642,863		14.96
Interest-bearing deposits			6,492,159			6,496,633			6,080,651			6,283,218			5,559,162			5,651,269			6.77	6,492,159			5,559,162			16.78
	Total deposits		8,380,720			8,357,769			7,921,075			8,118,518			7,202,025			7,230,850			5.80	8,380,720			7,202,025			16.37
Borrowed funds			520,747			265,191			297,360			591,933			312,077			202,006			75.12	520,747			312,077			66.86
Shareholders' equity			1,558,668			1,532,765			1,514,983			1,511,826			1,271,786			1,251,065			2.88	1,558,668			1,271,786			22.56
Market value per common share			$	45.52		$	42.56		$	40.89		$	42.90		$	43.74		$	39.69		11.32	$	45.52		$	43.74		4.07
Book value per common share			31.54			31.03			30.72			30.65			28.62			28.18			2.67	31.54			28.62			10.20
Tangible book value per common share			18.74			18.20			17.83			17.73			17.56			17.07			5.10	18.74			17.56			6.72
Shareholders' equity to assets (actual)			14.78		%	14.97		%	15.41		%	14.64		%	14.33		%	14.27		%		14.78		%	14.33		%
Tangible capital ratio (3)			9.35		%	9.36		%	9.56		%	9.03		%	9.31		%	9.16		%		9.35		%	9.31		%
Leverage ratio			10.65		%	10.61		%	10.18		%	10.05		%	10.68		%	10.39		%		10.65		%	10.68		%
Common equity tier 1 capital ratio			11.71		%	11.38		%	11.34		%	11.21		%	11.65		%	11.69		%		11.71		%	11.65		%
Tier 1 risk-based capital ratio			12.73		%	12.41		%	12.39		%	12.26		%	12.86		%	12.93		%		12.73		%	12.86		%
Total risk-based capital ratio			14.75		%	14.44		%	14.46		%	14.30		%	15.00		%	15.11		%		14.75		%	15.00		%

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																				Q2 2018 -	As of
	2018							2017												Q4 2017	June 30,
		Second			First			Fourth			Third			Second			First			Percent							Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance	2018			2017			Variance
Non purchased loans
Commercial, financial, agricultural		$	790,363		$	803,146		$	763,823		$	707,835		$	657,713		$	626,237		3.47	$	790,363		$	657,713		20.17
Lease Financing		52,423			52,536			54,013			51,902			49,066			47,816			(2.94)	52,423			49,066			6.84
Real estate- construction		642,380			582,430			547,658			477,638			424,861			378,061			17.3	642,380			424,861			51.20
Real estate - 1-4 family mortgages		1,912,450			1,785,271			1,729,534			1,644,060			1,551,934			1,485,663			10.58	1,912,450			1,551,934			23.23
Real estate - commercial mortgages		2,554,955			2,503,680			2,390,076			2,311,340			2,281,220			2,203,639			6.90	2,554,955			2,281,220			12.00
Installment loans to individuals		105,195			103,059			103,452			100,692			94,104			92,669			1.68	105,195			94,104			11.79
Loans, net of unearned		$	6,057,766		$	5,830,122		$	5,588,556		$	5,293,467		$	5,058,898		$	4,834,085		8.40	$	6,057,766		$	5,058,898		19.74
Purchased loans
Commercial, financial, agricultural		$	197,455		$	243,672		$	275,570		$	301,100		$	102,869		$	115,229		(28.35)	$	197,455		$	102,869		91.95
Lease Financing		—			—			—			—			—			—			—	—			—			—
Real estate- construction		70,438			75,061			85,731			100,082			35,946			35,673			(17.84)	70,438			35,946			95.96
Real estate - 1-4 family mortgages		520,649			572,830			614,187			651,792			400,460			431,904			(15.23)	520,649			400,460			30.01
Real estate - commercial mortgages		906,219			960,273			1,037,454			1,079,049			759,743			804,790			(12.65)	906,219			759,743			19.28
Installment loans to individuals		15,130			16,112			18,824			23,118			13,091			14,124			(19.62)	15,130			13,091			15.58
Loans, net of unearned		$	1,709,891		$	1,867,948		$	2,031,766		$	2,155,141		$	1,312,109		$	1,401,720		(15.84)	$	1,709,891		$	1,312,109		30.32
Asset quality data
Non purchased assets
Nonaccrual loans		$	8,921		$	9,403		$	10,250		$	9,970		$	11,413		$	12,629		(12.97)	$	8,921		$	11,413		(21.83)
Loans 90 past due or more		2,190			3,605			3,015			3,295			1,283			2,175			(27.36)	2,190			1,283			70.69
Nonperforming loans		11,111			13,008			13,265			13,265			12,696			14,804			(16.24)	11,111			12,696			(12.48)
Other real estate owned		4,698			4,801			4,410			4,524			4,305			5,056			6.53	4,698			4,305			9.13
Nonperforming assets not purchased		$	15,809		$	17,809		$	17,675		$	17,789		$	17,001		$	19,860		(10.56)	$	15,809		$	17,001		(7.01)
Purchased assets
Nonaccrual loans		$	4,561		$	5,340		$	4,424		$	4,868		$	5,927		$	8,495		3.10	$	4,561		$	5,927		(23.05)
Loans 90 past due or more		5,491			4,564			5,731			7,349			8,128			11,897			(4.19)	5,491			8,128			(32.44)
Nonperforming loans		10,052			9,904			10,155			12,217			14,055			20,392			(1.01)	10,052			14,055			(28.48)
Other real estate owned		9,006			9,754			11,524			13,296			15,409			16,266			(21.85)	9,006			15,409			(41.55)
Nonperforming assets purchased		$	19,058		$	19,658		$	21,679		$	25,513		$	29,464		$	36,658		(12.09)	$	19,058		$	29,464		(35.32)
Net loan charge-offs (recoveries)		$	856		$	1,560		$	470		$	1,768		$	524		$	1,314		82.13	$	2,416		$	1,838		31.45
Allowance for loan losses		$	47,355		$	46,401		$	46,211		$	44,531		$	44,149		$	42,923		2.48	$	47,355		$	44,149		7.26
Annualized net loan charge-offs / average loans		0.04		%	0.08		%	0.02		%	0.10		%	0.03		%	0.09		%		0.06		%	0.06		%
Nonperforming loans / total loans*		0.27		%	0.30		%	0.31		%	0.34		%	0.42		%	0.56		%		0.27		%	0.42		%
Nonperforming assets / total assets*		0.33		%	0.37		%	0.40		%	0.42		%	0.52		%	0.64		%		0.33		%	0.52		%
Allowance for loan losses / total loans*		0.61		%	0.60		%	0.61		%	0.60		%	0.69		%	0.69		%		0.61		%	0.69		%
Allowance for loan losses / nonperforming loans*		223.76		%	202.52		%	197.31		%	174.75		%	165.04		%	121.95		%		223.76		%	165.04		%
Nonperforming loans / total loans**		0.18		%	0.22		%	0.24		%	0.25		%	0.25		%	0.31		%		0.18		%	0.25		%
Nonperforming assets / total assets**		0.15		%	0.17		%	0.18		%	0.17		%	0.19		%	0.23		%		0.15		%	0.19		%
Allowance for loan losses / total loans**		0.78		%	0.80		%	0.83		%	0.84		%	0.87		%	0.89		%		0.78		%	0.87		%
Allowance for loan losses / nonperforming loans**		426.20		%	356.71		%	348.37		%	335.70		%	347.74		%	289.94		%		426.20		%	347.74		%
*Based on all assets (includes purchased assets)
**Excludes all purchased assets

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

	Three Months Ending																		For The Six Months Ending
	June 30, 2018						March 31, 2018						June 30, 2017						June 30, 2018						June 30, 2017
	Average		Interest		Yield/		Average		Interest		Yield/		Average		Interest		Yield/		Average		Interest		Yield/		Average		Interest		Yield/
	Balance		Income/		Rate		Balance		Income/		Rate		Balance		Income/		Rate		Balance		Income/		Rate		Balance		Income/		Rate
			Expense						Expense						Expense						Expense						Expense
Assets
Interest-earning assets:
Loans
Non purchased	$	5,920,430	$	69,737	4.72	%	$	5,689,210	$	64,611	4.61	%	$	4,938,922	$	54,955	4.46	%	$	5,805,459	$	134,348	4.67	%	$	4,846,290	$	106,098	4.41	%
Purchased	1,783,791		27,308		6.14		1,957,781		28,762		5.96		1,354,575		23,902		7.08		1,870,305		56,070		6.05		1,400,073		46,469		6.69
Total loans	7,704,221		97,045		5.05		7,646,991		93,373		4.95		6,293,497		78,857		5.03		7,675,764		190,418		5.00		6,246,363		152,567		4.93
Mortgage loans held for sale	209,652		2,381		4.56		152,299		1,671		4.45		168,650		1,831		4.35		181,134		4,052		4.51		140,534		2,980		4.28
Securities:
Taxable⁽¹⁾	819,004		5,638		2.76		606,642		3,914		2.62		737,494		4,340		2.36		713,410		9,552		2.70		721,240		8,410		2.35
Tax-exempt	220,943		2,358		4.28		226,434		2,406		4.31		331,750		3,891		4.70		223,673		4,764		4.30		335,301		8,188		4.92
Total securities	1,039,947		7,996		3.08		833,076		6,320		3.08		1,069,244		8,231		3.09		937,083		14,316		3.08		1,056,541		16,598		3.17
Interest-bearing balances with banks	90,708		569		2.52		128,313		583		1.84		126,458		510		1.62		109,407		1,152		2.12		219,748		1,065		0.98
Total interest-earning assets	9,044,528		107,991		4.79		8,760,679		101,947		4.72		7,657,849		89,429		4.68		8,903,388		209,938		4.75		7,663,186		173,210		4.56
Cash and due from banks	158,173						163,141						116,783						160,644						124,287
Intangible assets	633,155						634,898						492,349						634,022						493,078
Other assets	483,519						497,037						453,679						490,239						459,396
Total assets	$	10,319,375					$	10,055,755					$	8,720,660					$	10,188,293					$	8,739,947
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand⁽²⁾	4,054,909		5,441		0.54		3,911,802		3,407		0.35		3,368,363		1,917		0.23		3,983,751		8,848		0.45		3,389,368		3,730		0.22
Savings deposits	593,227		227		0.15		581,194		151		0.11		568,535		98		0.07		587,244		378		0.13		561,300		194		0.07
Time deposits	1,872,987		5,251		1.12		1,821,118		4,501		1.00		1,603,800		3,300		0.83		1,847,195		9,752		1.06		1,610,494		6,539		0.82
Total interest-bearing deposits	6,521,123		10,919		0.67		6,314,114		8,059		0.52		5,540,698		5,315		0.38		6,418,190		18,978		0.60		5,561,162		10,463		0.38
Borrowed funds	306,800		3,266		4.27		314,228		3,081		3.98		233,542		2,661		4.57		310,493		6,347		4.12		257,641		5,387		4.22
Total interest-bearing liabilities	6,827,923		14,185		0.83		6,628,342		11,140		0.68		5,774,240		7,976		0.55		6,728,683		25,325		0.76		5,818,803		15,850		0.55
Noninterest-bearing deposits	1,867,925						1,817,848						1,608,467						1,843,025						1,583,775
Other liabilities	81,456						85,692						79,018						83,563						84,417
Shareholders' equity	1,542,071						1,523,873						1,258,935						1,533,022						1,252,952
Total liabilities and shareholders' equity	$	10,319,375					$	10,055,755					$	8,720,660					$	10,188,293					$	8,739,947
Net interest income/ net interest margin			$	93,806	4.16	%			$	90,807	4.20	%			$	81,453	4.27	%			$	184,613	4.18	%			$	157,360	4.14	%
Cost of funding					0.65						0.53						0.43						0.60						0.43
Cost of total deposits					0.52						0.40						0.30						0.46						0.30

⁽¹⁾U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which we operate.
⁽²⁾Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
									RECONCILIATION OF GAAP TO NON-GAAP
																					Six Months Ended
		2018							2017												June 30,
			Second			First			Fourth			Third			Second			First
			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			2018			2017
Net income (GAAP)			$	36,710		$	33,826		$	16,511		$	26,421		$	25,284		$	23,972		$	70,536		$	49,256
	Amortization of intangibles, net of tax		1,241			1,284			1,133			1,149			1,013			1,064			2,525			2,077
Tangible net income (non-GAAP)			$	37,951		$	35,110		$	17,644		$	27,570		$	26,297		$	25,036		$	73,061		$	51,333

Net income (GAAP)			$	36,710		$	33,826		16,511			$	26,421		$	25,284		$	23,972		$	70,536		$	49,256
	Merger & conversion expenses, net of tax		389			700			479			4,075			2,065			235			1,090			2,302
	Debt prepayment penalties, net of tax		—			—			—			—			—			140			—			139
	Write-down of net deferred tax assets		—			—			14,486			—			—			—			—			—
	Write-down of net deferred tax assets		—			—			14,486			—			—			—			—			—
Net income with exclusions (non-GAAP)			$	37,099		$	34,526		$	31,476		$	30,496		$	27,349		$	24,347		$	71,626		$	51,697

Average shareholders' equity (GAAP)			$	1,542,071		$	1,523,873		$	1,518,131		$	1,495,591		$	1,258,935		$	1,246,903		$	1,533,022		$	1,252,952
	Intangibles		633,155			634,898			636,533			636,977			492,349			493,816			634,022			493,078
Average tangible s/h's equity (non-GAAP)			$	908,916		$	888,975		$	881,598		$	858,614		$	766,586		$	753,087		$	899,000		$	759,874

Average total assets (GAAP)			$	10,319,375		$	10,055,755		$	10,254,774		$	10,277,476		$	8,720,660		$	8,759,448		$	10,188,293		$	8,739,947
	Intangibles		633,155			634,898			636,533			636,977			492,349			493,816			634,022			493,078
Average tangible assets (non-GAAP)			$	9,686,220		$	9,420,857		$	9,618,241		$	9,640,499		$	8,228,311		$	8,265,632		$	9,554,271		$	8,246,869

Actual shareholders' equity (GAAP)			$	1,558,668		$	1,532,765		$	1,514,983		$	1,511,826		$	1,271,786		$	1,251,065		$	1,558,668		$	1,271,786
	Intangibles		632,311			633,905			635,556			637,264			491,552			493,045			632,311			491,552
Actual tangible s/h's equity (non-GAAP)			$	926,357		$	898,860		$	879,427		$	874,562		$	780,234		$	758,020		$	926,357		$	780,234

Actual total assets (GAAP)			$	10,544,475		$	10,238,313		$	9,829,981		$	10,323,687		$	8,872,272		$	8,764,711		$	10,544,475		$	8,872,272
	Intangibles		632,311			633,905			635,556			637,264			491,552			493,045			632,311			491,552
Actual tangible assets (non-GAAP)			$	9,912,164		$	9,604,408		$	9,194,425		$	9,686,423		$	8,380,720		$	8,271,666		$	9,912,164		$	8,380,720

(1) Return on Average Equity
Return on avg s/h's equity (GAAP)			9.55		%	9.00		%	4.31		%	7.01		%	8.06		%	7.80		%	9.28		%	7.93		%
	Effect of adjustment for intangible assets		7.20		%	7.02		%	3.63		%	5.73		%	5.70		%	5.68		%	7.11		%	5.69		%
Return on avg tangible s/h's equity (non-GAAP)			16.75		%	16.02		%	7.94		%	12.74		%	13.76		%	13.48		%	16.39		%	13.62		%

Return on avg s/h's equity with exclusions (GAAP)			9.65		%	9.19		%	8.23		%	8.09		%	8.71		%	7.92		%	9.42		%	8.32		%
	Effect of adjustment for intangible assets		7.27		%	7.15		%	6.44		%	6.53		%	6.13		%	5.76		%	7.21		%	5.94		%
Return on avg tangible s/h's equity with exclusion (non-GAAP)			16.92		%	16.34		%	14.67		%	14.62		%	14.84		%	13.68		%	16.63		%	14.27		%

(2) Return on Average Assets
Return on (average) assets (GAAP)			1.43		%	1.36		%	0.64		%	1.02		%	1.16		%	1.11		%	1.4		%	1.14		%
	Effect of adjustment for intangible assets		0.14		%	0.15		%	0.09		%	0.11		%	0.12		%	0.12		%	0.15		%	0.12		%
Return on average tangible assets (non-GAAP)			1.57		%	1.51		%	0.73		%	1.13		%	1.28		%	1.23		%	1.54		%	1.26		%

Return on avg assets with exclusions (GAAP)			1.44		%	1.39		%	1.22		%	1.18		%	1.26		%	1.13		%	1.42		%	1.19		%
	Effect of adjustment for intangible assets		0.14		%	0.15		%	0.13		%	0.12		%	0.12		%	0.12		%	0.15		%	0.12		%
Return on avg tangible assets with exclusions (non-GAAP)			1.59		%	1.54		%	1.35		%	1.30		%	1.38		%	1.25		%	1.57		%	1.31		%

(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP)			14.78		%	14.97		%	15.41		%	14.64		%	14.33		%	14.27		%	14.78		%	14.33		%
	Effect of adjustment for intangible assets		5.44		%	5.61		%	5.85		%	5.62		%	5.02		%	5.11		%	5.44		%	5.02		%
Tangible capital ratio (non-GAAP)			9.35		%	9.36		%	9.56		%	9.03		%	9.31		%	9.16		%	9.35		%	9.31		%

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
									CALCULATION OF EFFICIENCY RATIO

																					Six Months Ended
		2018							2017												June 30,
			Second			First			Fourth			Third			Second			First
			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			2018			2017
Interest income (FTE)			$	107,991		$	101,947		$	107,773		$	102,613		$	89,429		$	83,781		$	209,938		$	173,210
	Interest expense		14,185			11,140			11,325			10,678			7,976			7,874			25,325			15,850
Net Interest income (FTE)			$	93,806		$	90,807		$	96,448		$	91,935		$	81,453		$	75,907		$	184,613		$	157,360

Total noninterest income			$	35,581		$	33,953		$	32,441		$	33,413		$	34,265		$	32,021		$	69,534		$	66,286
	Securities gains (losses)		—			—			91			57			—			—			—			—
Total noninterest income			$	35,581		$	33,953		$	32,350		$	33,356		$	34,265		$	32,021		$	69,534		$	66,286
Total Income (FTE)			$	129,387		$	124,760		$	128,798		$	125,291		$	115,718		$	107,928		$	254,147		$	223,646

Total noninterest expense			$	79,026		$	77,944		$	76,808		$	80,660		$	74,841		$	69,309		$	156,970		$	144,150
	Amortization of intangibles		1,594			1,651			1,708			1,766			1,493			1,563			3,245			3,056
	Merger-related expenses		500			900			723			6,266			3,044			345			1,400			3,389
	Debt extinguishment penalty		—			—			—			—			—			205			—			205
Total noninterest expense			$	76,932		$	75,393		$	74,377		$	72,628		$	70,304		$	67,196		$	152,325		$	137,500

(4) Efficiency Ratio			59.46		%	60.43		%	57.75		%	57.97		%	60.75		%	62.26		%	59.94		%	61.48		%

Contacts:	For Media:	For Financials:
	John Oxford	Kevin Chapman
	Senior Vice President	Executive Vice President
	Director of Marketing and Public Relations	Chief Operating and Financial Officer
	(662) 680-1219	(662) 680-1450
	joxford@renasant.com	kchapman@renasant.com

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SOURCE Renasant Corporation

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