UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
April 22, 2014
Date of Report (Date of Earliest Event Reported)
RENASANT CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Mississippi | 001-13253 | 64-0676974 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
209 Troy Street, Tupelo, Mississippi 38804-4827
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, including area code: (662) 680-1001
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On April 22, 2014, Renasant Corporation issued a press release announcing earnings for the first quarter of 2014. The press release is furnished as Exhibit 99.1 to this Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(d) The following exhibits are furnished herewith:
Exhibit No. Description
99.1 | Press release dated April 22, 2014 issued by Renasant Corporation announcing earnings for the first quarter of 2014. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RENASANT CORPORATION | |||
Date: April 22, 2014 | By: | /s/ E. Robinson McGraw | |
E. Robinson McGraw | |||
Chairman, President and Chief | |||
Executive Officer | |||
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 | |||
RENASANT CORPORATION ANNOUNCES
2014 FIRST QUARTER EARNINGS
TUPELO, MISSISSIPPI (April 22, 2014) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced its financial results for the first quarter of 2014. Net income for the first quarter of 2014 was $13,597,000, or basic and diluted earnings per share (“EPS”) of $0.43, as compared to $7,571,000, or basic and diluted EPS of $0.30, for the first quarter of 2013. The Company’s balance sheet and results of operations as of and for the three months ending March 31, 2014 include the impact of the Company’s acquisition of First M&F Corporation (“First M&F”), which was completed on September 1, 2013. Periods presented prior to September 1, 2013, do not reflect any impact from the First M&F acquisition.
For the first quarter of 2014, the Company’s return on average assets and return on average equity were 0.93% and 8.19%, respectively, as compared to 0.73% and 6.12%, respectively, for the first quarter of 2013. The Company’s 2014 first quarter return on average tangible assets and return on
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average tangible equity were 1.05% and 16.05%, respectively, as compared to 0.79% and 10.19%, respectively, for the first quarter of 2013.
“Our first quarter results represent a strong beginning to 2014 as net income and EPS increased 80% and 43%, respectively, as compared to the same quarter last year,” said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. “With the operations of First M&F fully integrated, we believe we have made a strong start toward achieving our key performance goals and increasing profitability throughout 2014.”
Total assets as of March 31, 2014, were approximately $5.90 billion, as compared to $4.27 billion as of March 31, 2013, and $5.7 billion on a linked quarter basis. The increase in assets at March 31, 2014, as compared to the same period in 2013 is due primarily to the First M&F acquisition. The increase in assets on a linked quarter basis is due to a seasonal influx of deposits, primarily in public fund deposits. Due to the short-term nature of these deposit influxes, the funds from these deposits remained in liquid assets (low-yielding interest bearing cash or short-term investments). The excess cash and short term investments negatively impacted net interest margin by 15 basis points, leverage ratio by 16 basis points, tangible capital ratio by 12 basis points and return on average assets by 3 basis points.
Total deposits, including deposits acquired in the First M&F acquisition, were $5.0 billion at March 31, 2014, as compared to $3.56 billion at March 31, 2013, and $4.84 billion at December 31, 2013. The Company’s noninterest-bearing deposits averaged approximately $949 million, or 18.9% of average deposits, for the first quarter of 2014, as compared to $550 million, or 15.7% of average deposits, for the first quarter of 2013. The Company’s cost of funds was 48 basis points for the first quarter of 2014, as compared to 62 basis points for the same quarter in 2013.
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Total loans, including loans acquired in either the First M&F merger or in FDIC-assisted transactions (collectively referred to as “acquired loans”), were approximately $3.87 billion at March 31, 2014, as compared to $2.81 billion at March 31, 2013. Excluding acquired loans, loans grew 13.6% to $2.95 billion at March 31, 2014, as compared to $2.59 billion at
March 31, 2013.
At March 31, 2014, the Company’s Tier 1 leverage capital ratio was 8.56%, its Tier 1 risk-based capital ratio was 11.55% and its total risk-based capital ratio was 12.72%. In all capital ratio categories, the Company’s regulatory capital ratios continued to be in excess of the regulatory minimums required to be classified as “well-capitalized.” The Company’s tangible common equity ratio was 6.68% as of March 31, 2014.
Net interest income was $50.0 million for the first quarter of 2014, as compared to $33.4 million for the first quarter of 2013, and $50.7 million for the fourth quarter of 2013. Net interest margin was 4.04% for the first quarter of 2014, as compared to 3.89% for the first quarter of 2013, and 4.16% for the fourth quarter of 2013. The primary factor causing the Company’s linked quarter decline in net interest margin was the negative impact of the seasonal influx of public fund deposits and the resulting short-term liquidity described above.
Noninterest income was $18.6 million for the first quarter of 2014, as compared to $17.4 million for the first quarter of 2013, and $18.3 million for the fourth quarter of 2013. The Company’s increase in noninterest income year-over-year is primarily attributable to the First M&F merger, notably a 31.44% increase in service charges and a 116.38% increase in insurance commissions and fees.
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Noninterest expense was $47.6 million for the first quarter of 2014, as compared to $37.6 million for the first quarter of 2013, and $51.1 million for the fourth quarter of 2013. The Company recorded merger expenses associated with the First M&F acquisition of $195,000 and $1.9 million during the first quarter of 2014 and fourth quarter of 2013, respectively. The Company did not record any merger expenses during the first quarter of 2013. The Company’s increase in noninterest expense as compared to the same period in 2013 was primarily due to the expenses of the acquired First M&F operations.
At March 31, 2014, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $74.1 million and total other real estate owned (“OREO”) was $47.7 million. The Company’s nonperforming loans and OREO that were acquired either through the First M&F merger or in connection with FDIC-assisted transactions (collectively referred to as “acquired nonperforming assets”) were $54.4 million and $22.6 million, respectively at March 31, 2014.
Since the acquired nonperforming assets were recorded at fair value at the time of acquisition or subject to loss-share agreements with the FDIC, which significantly mitigates our actual loss, the remaining information in this release on nonperforming loans, OREO and the related asset quality ratios excludes these acquired nonperforming assets.
The Company’s nonperforming loans were $19.7 million as of March 31, 2014, as compared to $28.0 million as of March 31, 2013. Nonperforming loans as a percentage of total loans were 0.67% as of March 31, 2014, as compared to 1.08% as of March 31, 2013.
Annualized net charge-offs as a percentage of average loans were 0.11% for the first quarter of 2014, as compared to 0.13% for the first quarter of 2013. The Company recorded a provision for
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loan losses of $1.5 million for the first quarter of 2014, as compared to $3.1 million for the first quarter of 2013.
The allowance for loan losses totaled $48.0 million at March 31, 2014, as compared to $46.5 million as of March 31, 2013, and $47.7 million as of December 31, 2013. The allowance for loan losses as a percentage of loans was 1.63% as of March 31, 2014, as compared to 1.79% as of March 31, 2013.
The Company’s coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 244.06% as of March 31, 2014, as compared to 166.19% as of March 31, 2013. Loans 30 to 89 days past due as a percentage of total loans declined to 0.25% at March 31, 2014, as compared to 0.32% at March 31, 2013.
OREO was $25.1 million as of March 31, 2014, as compared to $39.8 million as of March 31, 2013. In addition, during the first quarter of 2014, the Company experienced a significant reduction in costs associated with OREO as OREO expense decreased approximately 16.98% as compared to the first quarter of 2013.
“Our key performance drivers, specifically loan pipelines, low-costing deposits, credit metrics and operational efficiencies, continue to show positive trends and healthy outlooks,” stated McGraw. “In addition, now that the acquired First M&F operations are fully integrated, we believe we are beginning to experience the full synergies of our combined companies, and we remain well positioned to take advantage of strategic growth opportunities when available.”
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CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 a.m. Eastern Time on Wednesday, April 23, 2014.
The webcast can be accessed through Renasant’s investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst140423.html. To access the conference via telephone, dial 1-888-317-6016 in the United States and request the Renasant Corporation First Quarter 2013 Earnings Webcast and Conference Call. International participants should dial 1-412-317-6016 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 10044091 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until 9:00 a.m. Eastern Time on May 8, 2014.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 110-year-old financial services institution, and Renasant Insurance. Renasant has assets of approximately $5.9 billion and operates more than 120 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama 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
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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 our portfolio of outstanding loans, and competition in our markets. We undertake 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, which the Company’s management uses 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 can vary extensively from company to company and 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 and the ratio of tangible equity to tangible assets (commonly referred to as the “tangible capital 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.”
###
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RENASANT CORPORATION | |||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||
Q1 2014 - | For the Three Months Ending | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | Q1 2013 | March 31, | ||||||||||||||||||||||||||||||||||
First | Fourth | Third | Second | First | Percent | Percent | |||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Variance | 2014 | 2013 | Variance | |||||||||||||||||||||||||||||
Statement of earnings | |||||||||||||||||||||||||||||||||||||
Interest income - taxable equivalent basis | $ | 57,810 | $ | 58,644 | $ | 46,083 | $ | 41,331 | $ | 40,371 | 43.20 | $ | 57,810 | $ | 40,371 | 43.20 | |||||||||||||||||||||
Interest income | $ | 56,177 | $ | 57,076 | $ | 44,638 | $ | 39,945 | $ | 38,945 | 44.25 | $ | 56,177 | $ | 38,945 | 44.25 | |||||||||||||||||||||
Interest expense | 6,206 | 6,408 | 5,890 | 5,541 | 5,564 | 11.54 | 6,206 | 5,564 | 11.54 | ||||||||||||||||||||||||||||
Net interest income | 49,971 | 50,668 | 38,748 | 34,404 | 33,381 | 49.70 | 49,971 | 33,381 | 49.70 | ||||||||||||||||||||||||||||
Provision for loan losses | 1,450 | 2,000 | 2,300 | 3,000 | 3,050 | (52.46 | ) | 1,450 | 3,050 | (52.46 | ) | ||||||||||||||||||||||||||
Net interest income after provision | 48,521 | 48,668 | 36,448 | 31,404 | 30,331 | 59.97 | 48,521 | 30,331 | 59.97 | ||||||||||||||||||||||||||||
Service charges on deposit accounts | 5,915 | 6,165 | 5,361 | 4,509 | 4,500 | 31.44 | 5,915 | 4,500 | 31.44 | ||||||||||||||||||||||||||||
Fees and commissions on loans and deposits | 4,972 | 5,300 | 4,982 | 4,848 | 4,831 | 2.92 | 4,972 | 4,831 | 2.92 | ||||||||||||||||||||||||||||
Insurance commissions and fees | 1,863 | 1,869 | 1,295 | 951 | 861 | 116.38 | 1,863 | 861 | 116.38 | ||||||||||||||||||||||||||||
Wealth management revenue | 2,144 | 2,124 | 2,091 | 1,715 | 1,724 | 24.36 | 2,144 | 1,724 | 24.36 | ||||||||||||||||||||||||||||
Securities gains (losses) | — | — | — | — | 54 | (100.00 | ) | — | 54 | (100.00 | ) | ||||||||||||||||||||||||||
Gain on sale of mortgage loans | 1,586 | 1,350 | 2,788 | 3,870 | 3,565 | (55.51 | ) | 1,586 | 3,565 | (55.51 | ) | ||||||||||||||||||||||||||
Gain on acquisition | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Other | 2,136 | 1,533 | 2,418 | 1,424 | 1,843 | 15.90 | 2,136 | 1,843 | 15.90 | ||||||||||||||||||||||||||||
Total noninterest income | 18,616 | 18,341 | 18,935 | 17,317 | 17,378 | 7.12 | 18,616 | 17,378 | 7.12 | ||||||||||||||||||||||||||||
Salaries and employee benefits | 28,428 | 29,911 | 25,689 | 21,906 | 21,274 | 33.63 | 28,428 | 21,274 | 33.63 | ||||||||||||||||||||||||||||
Data processing | 2,695 | 2,546 | 2,236 | 2,045 | 2,043 | 31.91 | 2,695 | 2,043 | 31.91 | ||||||||||||||||||||||||||||
Occupancy and equipment | 4,847 | 5,105 | 4,576 | 3,668 | 3,608 | 34.34 | 4,847 | 3,608 | 34.34 | ||||||||||||||||||||||||||||
Other real estate | 1,701 | 1,607 | 1,537 | 1,773 | 2,049 | (16.98 | ) | 1,701 | 2,049 | (16.98 | ) | ||||||||||||||||||||||||||
Amortization of intangibles | 1,471 | 1,508 | 724 | 314 | 323 | 355.42 | 1,471 | 323 | 355.42 | ||||||||||||||||||||||||||||
Merger-related expenses | 195 | 1,879 | 3,763 | 385 | — | — | 195 | — | — | ||||||||||||||||||||||||||||
Debt extinguishment penalty | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Other | 8,308 | 8,573 | 8,088 | 7,643 | 8,303 | 0.06 | 8,308 | 8,303 | 0.06 | ||||||||||||||||||||||||||||
Total noninterest expense | 47,645 | 51,129 | 46,613 | 37,734 | 37,600 | 26.72 | 47,645 | 37,600 | 26.72 | ||||||||||||||||||||||||||||
Income before income taxes | 19,492 | 15,880 | 8,770 | 10,987 | 10,109 | 92.82 | 19,492 | 10,109 | 92.82 | ||||||||||||||||||||||||||||
Income taxes | 5,895 | 4,620 | 2,133 | 2,968 | 2,538 | 132.27 | 5,895 | 2,538 | 132.27 | ||||||||||||||||||||||||||||
Net income | $ | 13,597 | $ | 11,260 | $ | 6,637 | $ | 8,019 | $ | 7,571 | 79.59 | $ | 13,597 | $ | 7,571 | 79.59 | |||||||||||||||||||||
Basic earnings per share | $ | 0.43 | $ | 0.36 | $ | 0.24 | $ | 0.32 | $ | 0.30 | 43.33 | $ | 0.43 | $ | 0.30 | 43.33 | |||||||||||||||||||||
Diluted earnings per share | 0.43 | 0.36 | 0.24 | 0.32 | 0.30 | 43.33 | 0.43 | 0.30 | 43.33 | ||||||||||||||||||||||||||||
Average basic shares outstanding | 31,436,148 | 31,366,019 | 27,234,927 | 25,223,749 | 25,186,229 | 24.81 | 31,436,148 | 25,186,229 | 24.81 | ||||||||||||||||||||||||||||
Average diluted shares outstanding | 31,724,474 | 31,617,681 | 27,447,382 | 25,373,868 | 25,288,785 | 25.45 | 31,724,474 | 25,288,785 | 25.45 | ||||||||||||||||||||||||||||
Common shares outstanding | 31,480,395 | 31,387,668 | 31,358,583 | 25,231,074 | 25,208,733 | 24.88 | 31,480,395 | 25,208,733 | 24.88 | ||||||||||||||||||||||||||||
Cash dividend per common share | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | — | $ | 0.17 | $ | 0.17 | — | |||||||||||||||||||||
Performance ratios | |||||||||||||||||||||||||||||||||||||
Return on average shareholders' equity | 8.19 | % | 6.71 | % | 4.75 | % | 6.35 | % | 6.12 | % | 8.19 | % | 6.12 | % | |||||||||||||||||||||||
Return on average tangible shareholders' equity | 16.05 | % | 13.55 | % | 8.74 | % | 10.47 | % | 10.19 | % | 16.05 | % | 10.04 | % | |||||||||||||||||||||||
Return on average assets | 0.93 | % | 0.78 | % | 0.56 | % | 0.76 | % | 0.73 | % | 0.93 | % | 0.73 | % | |||||||||||||||||||||||
Return on average tangible assets | 1.05 | % | 0.90 | % | 0.63 | % | 0.82 | % | 0.79 | % | 1.05 | % | 0.79 | % | |||||||||||||||||||||||
Net interest margin (FTE) | 4.04 | % | 4.16 | % | 3.86 | % | 3.88 | % | 3.89 | % | 4.04 | % | 3.89 | % | |||||||||||||||||||||||
Yield on earning assets (FTE) | 4.53 | % | 4.67 | % | 4.42 | % | 4.49 | % | 4.51 | % | 4.53 | % | 4.51 | % | |||||||||||||||||||||||
Cost of funding | 0.48 | % | 0.51 | % | 0.57 | % | 0.60 | % | 0.62 | % | 0.48 | % | 0.62 | % | |||||||||||||||||||||||
Average earning assets to average assets | 87.35 | % | 86.78 | % | 87.43 | % | 87.32 | % | 86.31 | % | 87.35 | % | 86.27 | % | |||||||||||||||||||||||
Average loans to average deposits | 77.00 | % | 79.89 | % | 81.69 | % | 80.93 | % | 80.30 | % | 77.00 | % | 80.30 | % | |||||||||||||||||||||||
Noninterest income (less securities gains/ | |||||||||||||||||||||||||||||||||||||
losses) to average assets | 1.27 | % | 1.27 | % | 1.59 | % | 1.64 | % | 1.67 | % | 1.27 | % | 1.67 | % | |||||||||||||||||||||||
Noninterest expense (less debt prepayment penalties/ | |||||||||||||||||||||||||||||||||||||
merger-related expenses) to average assets | 3.25 | % | 3.40 | % | 3.59 | % | 3.54 | % | 3.63 | % | 3.25 | % | 3.62 | % | |||||||||||||||||||||||
Net overhead ratio | 1.97 | % | 2.14 | % | 2.01 | % | 1.90 | % | 1.95 | % | 1.97 | % | 1.95 | % | |||||||||||||||||||||||
Efficiency ratio (FTE)** | 65.48 | % | 67.65 | % | 71.25 | % | 69.74 | % | 71.51 | % | 65.48 | % | 71.42 | % | |||||||||||||||||||||||
**Excludes debt extinguishment penalties and merger-related expenses from noninterest expense and profit (loss) on sales of securities and gains on acquisitions from noninterest income | |||||||||||||||||||||||||||||||||||||
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RENASANT CORPORATION | |||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||
Q1 2014 - | For the Three Months Ending | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | Q1 2013 | March 31, | ||||||||||||||||||||||||||||||||||
First | Fourth | Third | Second | First | Percent | Percent | |||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Variance | 2014 | 2013 | Variance | |||||||||||||||||||||||||||||
Average Balances | |||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,927,884 | $ | 5,741,794 | $ | 4,729,079 | $ | 4,231,947 | $ | 4,206,411 | 40.92 | $ | 5,927,884 | $ | 4,206,411 | 40.92 | |||||||||||||||||||||
Earning assets | 5,178,069 | 4,982,614 | 4,134,730 | 3,695,409 | 3,630,759 | 42.62 | 5,178,069 | 3,630,759 | 42.62 | ||||||||||||||||||||||||||||
Securities | 1,002,519 | 924,179 | 819,351 | 754,515 | 698,863 | 43.45 | 1,002,519 | 698,863 | 43.45 | ||||||||||||||||||||||||||||
Mortgage loans held for sale | 19,925 | 25,248 | 37,056 | 32,318 | 22,347 | (10.84 | ) | 19,925 | 22,347 | (10.84 | ) | ||||||||||||||||||||||||||
Loans, net of unearned | 3,868,747 | 3,865,615 | 3,213,853 | 2,845,260 | 2,804,618 | 37.94 | 3,868,747 | 2,804,618 | 37.94 | ||||||||||||||||||||||||||||
Intangibles | 303,599 | 304,388 | 227,606 | 190,362 | 190,787 | 59.13 | 303,599 | 190,787 | 59.13 | ||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 949,317 | $ | 888,888 | $ | 660,415 | $ | 562,104 | $ | 549,514 | 72.76 | $ | 949,317 | $ | 549,514 | 72.76 | |||||||||||||||||||||
Interest-bearing deposits | 4,074,746 | 3,949,909 | 3,273,658 | 2,953,435 | 2,943,247 | 38.44 | 4,074,746 | 2,943,247 | 38.44 | ||||||||||||||||||||||||||||
Total deposits | 5,024,063 | 4,838,797 | 3,934,073 | 3,515,539 | 3,492,761 | 43.84 | 5,024,063 | 3,492,761 | 43.84 | ||||||||||||||||||||||||||||
Borrowed funds | 170,091 | 173,583 | 189,909 | 164,894 | 163,981 | 3.73 | 170,091 | 163,981 | 3.73 | ||||||||||||||||||||||||||||
Shareholders' equity | 673,047 | 665,513 | 553,772 | 506,225 | 501,634 | 34.17 | 673,047 | 501,634 | 34.17 | ||||||||||||||||||||||||||||
Balances at period end | |||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,902,831 | $ | 5,746,270 | $ | 5,735,865 | $ | 4,242,401 | $ | 4,267,658 | 38.32 | $ | 5,902,831 | $ | 4,267,658 | 38.32 | |||||||||||||||||||||
Earning assets | 5,168,996 | 4,999,434 | 4,972,051 | 3,715,321 | 3,706,707 | 39.45 | 5,168,996 | 3,706,707 | 39.45 | ||||||||||||||||||||||||||||
Securities | 1,054,511 | 925,670 | 915,869 | 746,530 | 740,613 | 42.38 | 1,054,511 | 740,613 | 42.38 | ||||||||||||||||||||||||||||
Mortgage loans held for sale | 28,433 | 33,440 | 28,466 | 50,268 | 26,286 | 8.17 | 28,433 | 26,286 | 8.17 | ||||||||||||||||||||||||||||
Loans acquired from M&F | 746,047 | 813,451 | 891,420 | — | — | — | 746,047 | — | |||||||||||||||||||||||||||||
Loans not acquired | 2,947,836 | 2,885,802 | 2,794,116 | 2,683,017 | 2,594,438 | 13.62 | 2,947,836 | 2,594,438 | 13.62 | ||||||||||||||||||||||||||||
Loans acquired and subject to loss share | 173,545 | 181,765 | 195,996 | 201,494 | 213,872 | (18.86 | ) | 173,545 | 213,872 | (18.86 | ) | ||||||||||||||||||||||||||
Total loans | 3,867,428 | 3,881,018 | 3,881,532 | 2,884,511 | 2,808,310 | 37.71 | 3,867,428 | 2,808,310 | 37.71 | ||||||||||||||||||||||||||||
Intangibles | 302,903 | 304,330 | 305,065 | 190,208 | 190,522 | 58.99 | 302,903 | 190,522 | 58.99 | ||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 914,964 | $ | 856,020 | $ | 876,138 | $ | 560,965 | $ | 567,065 | 61.35 | $ | 914,964 | $ | 567,065 | 61.35 | |||||||||||||||||||||
Interest-bearing deposits | 4,089,820 | 3,985,892 | 3,958,618 | 2,944,193 | 2,988,110 | 36.87 | 4,089,820 | 2,988,110 | 36.87 | ||||||||||||||||||||||||||||
Total deposits | 5,004,784 | 4,841,912 | 4,834,756 | 3,505,158 | 3,555,175 | 40.77 | 5,004,784 | 3,555,175 | 40.77 | ||||||||||||||||||||||||||||
Borrowed funds | 168,700 | 171,875 | 177,168 | 195,789 | 164,063 | 2.83 | 168,700 | 164,063 | 2.83 | ||||||||||||||||||||||||||||
Shareholders' equity | 676,715 | 665,652 | 657,256 | 500,678 | 502,375 | 34.70 | 676,715 | 502,375 | 34.70 | ||||||||||||||||||||||||||||
Market value per common share | $ | 29.05 | $ | 31.46 | $ | 27.17 | $ | 24.34 | $ | 22.38 | 29.80 | $ | 29.05 | $ | 22.38 | 29.80 | |||||||||||||||||||||
Book value per common share | 21.50 | 21.21 | 20.96 | 19.84 | 19.93 | 7.88 | 21.50 | 19.93 | 7.88 | ||||||||||||||||||||||||||||
Tangible book value per common share | 11.87 | 11.51 | 11.23 | 12.31 | 12.37 | (4.04 | ) | 11.87 | 12.37 | (4.04 | ) | ||||||||||||||||||||||||||
Shareholders' equity to assets (actual) | 11.46 | % | 11.58 | % | 11.46 | % | 11.80 | % | 11.77 | % | (2.63 | ) | 11.46 | % | 11.77 | % | (2.63 | ) | |||||||||||||||||||
Tangible capital ratio | 6.68 | % | 6.64 | % | 6.49 | % | 7.66 | % | 7.65 | % | (12.68 | ) | 6.68 | % | 7.65 | % | (12.68 | ) | |||||||||||||||||||
Leverage ratio | 8.56 | % | 8.68 | % | 8.61 | % | 9.83 | % | 9.79 | % | (12.56 | ) | 8.56 | % | 9.79 | % | (12.56 | ) | |||||||||||||||||||
Tier 1 risk-based capital ratio | 11.55 | % | 11.52 | % | 11.34 | % | 12.87 | % | 12.86 | % | (10.19 | ) | 11.55 | % | 12.86 | % | (10.19 | ) | |||||||||||||||||||
Total risk-based capital ratio | 12.72 | % | 12.69 | % | 12.47 | % | 14.14 | % | 14.13 | % | (9.98 | ) | 12.72 | % | 14.13 | % | (9.98 | ) | |||||||||||||||||||
9
RENASANT CORPORATION | |||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||
Q1 2014 - | For the Three Months Ending | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | Q1 2013 | March 31, | ||||||||||||||||||||||||||||||||||
First | Fourth | Third | Second | First | Percent | Percent | |||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Variance | 2014 | 2013 | Variance | |||||||||||||||||||||||||||||
Loans not acquired | |||||||||||||||||||||||||||||||||||||
Commercial, financial, agricultural | $ | 347,828 | $ | 341,600 | $ | 331,142 | $ | 307,718 | $ | 298,013 | 16.72 | $ | 347,828 | $ | 298,013 | 16.72 | |||||||||||||||||||||
Lease Financing | 612 | 52 | 75 | 103 | 162 | 277.78 | 612 | 162 | 277.78 | ||||||||||||||||||||||||||||
Real estate- construction | 149,450 | 147,075 | 127,013 | 117,339 | 109,484 | 36.50 | 149,450 | 109,484 | 36.50 | ||||||||||||||||||||||||||||
Real estate - 1-4 family mortgages | 941,260 | 928,803 | 891,422 | 859,884 | 834,204 | 12.83 | 941,260 | 834,204 | 12.83 | ||||||||||||||||||||||||||||
Real estate - commercial mortgages | 1,441,403 | 1,404,617 | 1,383,680 | 1,335,402 | 1,295,213 | 11.29 | 1,441,403 | 1,295,213 | 11.29 | ||||||||||||||||||||||||||||
Installment loans to individuals | 67,283 | 63,655 | 60,784 | 62,571 | 57,362 | 17.30 | 67,283 | 57,362 | 17.30 | ||||||||||||||||||||||||||||
Loans, net of unearned | $ | 2,947,836 | $ | 2,885,802 | $ | 2,794,116 | $ | 2,683,017 | $ | 2,594,438 | 13.62 | $ | 2,947,836 | $ | 2,594,438 | 13.62 | |||||||||||||||||||||
Loans acquired and subject to loss share | |||||||||||||||||||||||||||||||||||||
Commercial, financial, agricultural | $ | 8,283 | $ | 9,546 | $ | 10,280 | $ | 10,283 | $ | 10,157 | (18.45 | ) | $ | 8,283 | $ | 10,157 | (18.45 | ) | |||||||||||||||||||
Lease Financing | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate- construction | 1,648 | 1,648 | 1,648 | 1,648 | 1,648 | — | 1,648 | 1,648 | — | ||||||||||||||||||||||||||||
Real estate - 1-4 family mortgages | 52,252 | 54,466 | 56,722 | 60,409 | 65,489 | (20.21 | ) | 52,252 | 65,489 | (20.21 | ) | ||||||||||||||||||||||||||
Real estate - commercial mortgages | 111,337 | 116,077 | 127,315 | 129,120 | 136,541 | (18.46 | ) | 111,337 | 136,541 | (18.46 | ) | ||||||||||||||||||||||||||
Installment loans to individuals | 25 | 28 | 31 | 34 | 37 | (32.43 | ) | 25 | 37 | (32.43 | ) | ||||||||||||||||||||||||||
Loans, net of unearned | $ | 173,545 | $ | 181,765 | $ | 195,996 | $ | 201,494 | $ | 213,872 | (18.86 | ) | $ | 173,545 | $ | 213,872 | (18.86 | ) | |||||||||||||||||||
Loans acquired from M&F | |||||||||||||||||||||||||||||||||||||
Commercial, financial, agricultural | $ | 84,004 | $ | 117,817 | $ | 139,821 | $ | — | $ | — | — | $ | 84,004 | $ | — | — | |||||||||||||||||||||
Lease Financing | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate- construction | 4,803 | 12,713 | 23,556 | — | — | — | 4,803 | — | — | ||||||||||||||||||||||||||||
Real estate - 1-4 family mortgages | 217,748 | 224,965 | 244,079 | — | — | — | 217,748 | — | — | ||||||||||||||||||||||||||||
Real estate - commercial mortgages | 415,418 | 429,878 | 449,589 | — | — | — | 415,418 | — | — | ||||||||||||||||||||||||||||
Installment loans to individuals | 24,074 | 28,078 | 34,375 | — | — | — | 24,074 | — | — | ||||||||||||||||||||||||||||
Loans, net of unearned | $ | 746,047 | $ | 813,451 | $ | 891,420 | $ | — | $ | — | — | $ | 746,047 | $ | — | — | |||||||||||||||||||||
Asset quality data | |||||||||||||||||||||||||||||||||||||
Assets not acquired: | |||||||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 18,365 | $ | 16,863 | $ | 19,995 | $ | 20,554 | $ | 25,382 | (27.65 | ) | $ | 18,365 | $ | 25,382 | (27.65 | ) | |||||||||||||||||||
Loans 90 past due or more | 1,322 | 2,287 | 2,078 | 1,983 | 2,601 | (49.17 | ) | 1,322 | 2,601 | (49.17 | ) | ||||||||||||||||||||||||||
Nonperforming loans | 19,687 | 19,150 | 22,073 | 22,537 | 27,983 | (29.65 | ) | 19,687 | 27,983 | (29.65 | ) | ||||||||||||||||||||||||||
Other real estate owned | 25,117 | 27,543 | 27,357 | 33,247 | 39,786 | (36.87 | ) | 25,117 | 39,786 | (36.87 | ) | ||||||||||||||||||||||||||
Nonperforming assets not acquired | $ | 44,804 | $ | 46,693 | $ | 49,430 | $ | 55,784 | $ | 67,769 | (33.89 | ) | $ | 44,804 | $ | 67,769 | (33.89 | ) | |||||||||||||||||||
Assets acquired and subject to loss share: | |||||||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 46,078 | $ | 49,194 | $ | 49,585 | $ | 47,281 | # | $ | 47,972 | (3.95 | ) | $ | 46,078 | $ | 47,972 | (3.95 | ) | ||||||||||||||||||
Loans 90 past due or more | 32 | — | 505 | 126 | # | — | — | 32 | — | — | |||||||||||||||||||||||||||
Nonperforming loans | 46,110 | 49,194 | 50,090 | 47,407 | # | 47,972 | (3.88 | ) | 46,110 | 47,972 | (3.88 | ) | |||||||||||||||||||||||||
Other real estate owned | 10,218 | 12,942 | 16,580 | 27,835 | # | 35,095 | (70.88 | ) | 10,218 | 35,095 | (70.88 | ) | |||||||||||||||||||||||||
Nonperforming assets acquired and subject to loss share | $ | 56,328 | $ | 62,136 | $ | 66,670 | $ | 75,242 | # | $ | 83,067 | (32.19 | ) | $ | 56,328 | $ | 83,067 | (32.19 | ) | ||||||||||||||||||
Assets acquired from M&F: | |||||||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 6,393 | $ | 6,275 | $ | 224 | $ | — | # | $ | — | — | $ | 6,393 | $ | — | — | ||||||||||||||||||||
Loans 90 past due or more | 1,922 | 1,899 | 8,568 | — | # | — | — | 1,922 | — | — | |||||||||||||||||||||||||||
Nonperforming loans | 8,315 | 8,174 | 8,792 | — | # | — | — | 8,315 | — | — | |||||||||||||||||||||||||||
Other real estate owned | 12,406 | 12,402 | 13,223 | — | # | — | — | 12,406 | — | — | |||||||||||||||||||||||||||
Nonperforming assets acquired from M&F | $ | 20,721 | $ | 20,576 | $ | 22,015 | $ | — | # | $ | — | — | $ | 20,721 | $ | — | — | ||||||||||||||||||||
Net loan charge-offs (recoveries) | $ | 1,067 | $ | 584 | $ | 3,084 | $ | 2,471 | $ | 893 | 19.48 | $ | 1,067 | $ | 893 | 19.48 | |||||||||||||||||||||
Allowance for loan losses | 48,048 | 47,666 | 46,250 | 47,034 | 46,505 | 3.32 | 48,048 | 46,505 | 3.32 | ||||||||||||||||||||||||||||
Annualized net loan charge-offs / average loans | 0.11 | % | 0.06 | % | 0.38 | % | 0.35 | % | 0.13 | % | 0.11 | % | 0.13 | % | |||||||||||||||||||||||
Nonperforming loans / total loans* | 0.76 | % | 0.74 | % | 0.84 | % | 0.84 | % | 1.08 | % | 0.76 | % | 1.08 | % | |||||||||||||||||||||||
Nonperforming assets / total assets* | 1.11 | % | 1.17 | % | 1.25 | % | 1.31 | % | 1.59 | % | 1.11 | % | 1.59 | % | |||||||||||||||||||||||
Allowance for loan losses / total loans* | 1.30 | % | 1.29 | % | 1.25 | % | 1.75 | % | 1.79 | % | 1.30 | % | 1.79 | % | |||||||||||||||||||||||
Allowance for loan losses / nonperforming loans* | 171.59 | % | 174.45 | % | 149.85 | % | 208.70 | % | 166.19 | % | 171.59 | % | 166.19 | % | |||||||||||||||||||||||
Nonperforming loans / total loans** | 0.67 | % | 0.66 | % | 0.79 | % | 0.84 | % | 1.08 | % | 0.67 | % | 1.08 | % | |||||||||||||||||||||||
Nonperforming assets / total assets** | 0.76 | % | 0.81 | % | 0.86 | % | 1.31 | % | 1.59 | % | 0.76 | % | 1.59 | % | |||||||||||||||||||||||
Allowance for loan losses / total loans** | 1.63 | % | 1.65 | % | 1.66 | % | 1.75 | % | 1.79 | % | 1.63 | % | 1.79 | % | |||||||||||||||||||||||
Allowance for loan losses / nonperforming loans** | 244.06 | % | 248.91 | % | 209.53 | % | 208.70 | % | 166.19 | % | 244.06 | % | 166.19 | % | |||||||||||||||||||||||
*Based on assets not subject to loss share (includes assets acquired from M&F) | |||||||||||||||||||||||||||||||||||||
**Excludes assets acquired from M&F and assets covered under loss share | |||||||||||||||||||||||||||||||||||||
10
RENASANT CORPORATION | |||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP | |||||||||||||||||||||||||||||||||||||
For the Three Months Ending | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | March 31, | |||||||||||||||||||||||||||||||||||
First | Fourth | Third | Second | First | |||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 2014 | 2013 | |||||||||||||||||||||||||||||||
Net income (GAAP) | $ | 13,597 | $ | 11,260 | $ | 6,637 | $ | 8,019 | $ | 7,571 | $ | 13,597 | $ | 7,571 | |||||||||||||||||||||||
Amortization of intangibles, net of tax | 1,026 | 1,069 | 548 | 229 | 242 | 1,026 | 242 | ||||||||||||||||||||||||||||||
Tangible net income (non-GAAP) | $ | 14,623 | $ | 12,329 | $ | 7,185 | $ | 8,248 | $ | 7,813 | $ | 14,623 | $ | 7,813 | |||||||||||||||||||||||
Average shareholders' equity (GAAP) | $ | 673,047 | $ | 665,513 | $ | 553,772 | $ | 506,225 | $ | 501,634 | $ | 673,047 | $ | 501,634 | |||||||||||||||||||||||
Intangibles | 303,599 | 304,388 | 227,606 | 190,362 | 190,787 | 303,599 | 190,787 | ||||||||||||||||||||||||||||||
Average tangible s/h's equity (non-GAAP) | $ | 369,448 | $ | 361,125 | $ | 326,166 | $ | 315,863 | $ | 310,847 | $ | 369,448 | $ | 310,847 | |||||||||||||||||||||||
Average total assets (GAAP) | $ | 5,927,920 | $ | 5,741,794 | $ | 4,729,079 | $ | 4,231,947 | $ | 4,206,411 | $ | 5,927,920 | $ | 4,206,411 | |||||||||||||||||||||||
Intangibles | 303,599 | 304,388 | 227,606 | 190,362 | 190,787 | 303,599 | 190,787 | ||||||||||||||||||||||||||||||
Average tangible assets (non-GAAP) | $ | 5,624,321 | $ | 5,437,406 | $ | 4,501,473 | $ | 4,041,585 | $ | 4,015,624 | $ | 5,624,321 | $ | 4,015,624 | |||||||||||||||||||||||
Actual total assets (GAAP) | $ | 5,906,071 | $ | 5,746,270 | $ | 5,735,865 | $ | 4,242,401 | $ | 4,267,658 | $ | 5,906,071 | $ | 4,267,658 | |||||||||||||||||||||||
Intangibles | 302,903 | 304,330 | 305,065 | 190,208 | 190,522 | 302,903 | 190,522 | ||||||||||||||||||||||||||||||
Actual tangible assets (non-GAAP) | $ | 5,603,168 | $ | 5,441,940 | $ | 5,430,800 | $ | 4,052,193 | $ | 4,077,136 | $ | 5,603,168 | $ | 4,077,136 | |||||||||||||||||||||||
(1) Return on Average Equity | |||||||||||||||||||||||||||||||||||||
Return on avg s/h's equity (GAAP) | 8.19 | % | 6.71 | % | 4.75 | % | 6.35 | % | 6.12 | % | 8.19 | % | 6.12 | % | |||||||||||||||||||||||
Effect of adjustment for intangible assets | 7.86 | % | 6.83 | % | 3.98 | % | 4.12 | % | 4.07 | % | 7.86 | % | 4.07 | % | |||||||||||||||||||||||
Return on avg tangible s/h's equity (non-GAAP) | 16.05 | % | 13.55 | % | 8.74 | % | 10.47 | % | 10.19 | % | 16.05 | % | 10.19 | % | |||||||||||||||||||||||
(2) Return on Average Assets | |||||||||||||||||||||||||||||||||||||
Return on (average) assets (GAAP) | 0.93 | % | 0.78 | % | 0.56 | % | 0.76 | % | 0.73 | % | 0.93 | % | 0.73 | % | |||||||||||||||||||||||
Effect of adjustment for intangible assets | 0.12 | % | 0.12 | % | 0.08 | % | 0.06 | % | 0.06 | % | 0.12 | % | 0.06 | % | |||||||||||||||||||||||
Return on average tangible assets (non-GAAP) | 1.05 | % | 0.90 | % | 0.63 | % | 0.82 | % | 0.79 | % | 1.05 | % | 0.79 | % | |||||||||||||||||||||||
(3) Shareholder Equity Ratio | |||||||||||||||||||||||||||||||||||||
Shareholders' equity to (actual) assets (GAAP) | 11.46 | % | 11.58 | % | 11.46 | % | 11.80 | % | 11.77 | % | 11.46 | % | 11.77 | % | |||||||||||||||||||||||
Effect of adjustment for intangible assets | 4.79 | % | 4.94 | % | 4.97 | % | 4.14 | % | 4.12 | % | 4.79 | % | 4.12 | % | |||||||||||||||||||||||
Tangible capital ratio (non-GAAP) | 6.68 | % | 6.64 | % | 6.49 | % | 7.66 | % | 7.65 | % | 6.68 | % | 7.65 | % | |||||||||||||||||||||||
11