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
July 15, 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 July 15, 2014, Renasant Corporation issued a press release announcing earnings for the second 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 July 15, 2014 issued by Renasant Corporation announcing earnings for the second 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: July 15, 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 ANNOUNCES 2014
SECOND QUARTER EARNINGS
TUPELO, MISSISSIPPI (July 15, 2014) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced its financial results for the second quarter of 2014. Net income increased 85% for the second quarter of 2014 to $14,853,000, or basic and diluted earnings per share (“EPS”) of $0.47, as compared to $8,019,000, or basic and diluted EPS of $0.32, for the second quarter of 2013. The Company’s balance sheet and results of operations as of and for the three months ending June 30, 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 second quarter of 2014, the Company’s return on assets and return on equity were 1.02% and 8.67%, respectively, as compared to 0.76% and 6.35%, respectively, for the second quarter of 2013. The Company’s 2014 second quarter return on tangible assets and return on tangible
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equity were 1.15% and 16.55%, respectively, as compared to 0.82% and 10.47%, respectively, for the second quarter of 2013.
“Our second quarter financial results reflect the achievement of several key short-term initiatives and continued progress on our long-term strategies, specifically a return to higher levels of sustainable profitability and replenishing capital deployed in the First M&F acquisition. Focusing first on sustainable profitability, our earnings per share of 47 cents represents our highest quarterly earnings in the 110-year history of our company excluding quarters which recognized one-time gains associated with acquisitions. In addition, our return on assets was 1.02% for the quarter, marking the first time our return on assets exceeded 1% since the economic downturn,” commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. “These accomplishments were driven by annualized linked quarter non-acquired loan growth of 20.1% and a continued focus on generating revenues from our diversified lines of business while at the same time managing expenses to ensure future revenue growth is maximized. In regards to capital levels, our tangible common equity ratio stands at 7.00% at June 30, 2014, which, coupled with our strong regulatory capital ratios, will continue to support future balance sheet growth whether that growth is organic or the result of an external opportunity.”
Total assets as of June 30, 2014, were approximately $5.83 billion, as compared to $5.74 billion from December 31, 2013, and $5.9 billion on a linked quarter basis. The decrease in assets on a linked quarter basis is due to the seasonal runoff of deposits, primarily in public fund deposits, and the related divestiture of the liquid assets (low-yielding interest bearing cash or short-term investments) in which these seasonal deposits were invested.
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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 $3.96 billion at June 30, 2014, as compared to $3.88 billion at December 31, 2013, and $3.87 billion on a linked quarter basis. Excluding acquired loans, loans grew 7.3%, or 14.6% annualized, to $3.10 billion at June 30, 2014, as compared to $2.89 billion at December 31, 2013, and increased 5.0%, or 20.1% annualized, from $2.95 billion on a linked quarter basis.
Total deposits were $4.89 billion at June 30, 2014, as compared to $4.84 billion at December 31, 2013, and $5.00 billion on a linked quarter basis. Noninterest-bearing deposits averaged approximately $905.2 million, which represents 18.4% of the Company’s average deposits, for the second quarter of 2014, as compared to $562.1 million, or 16% of average deposits, for the second quarter of 2013. The Company’s cost of funds was 48 basis points for the second quarter of 2014, as compared to 60 basis points for the same quarter in 2013.
As of June 30, 2014, the Company's Tier 1 leverage capital ratio was 8.91%, its Tier 1 risk-based capital ratio was 11.82%, and its total risk-based capital ratio was 12.96%. The Company’s tangible common equity ratio was 7.00%. All of the Company’s regulatory capital ratios increased on a linked quarter basis and continue to be in excess of the regulatory minimums required to be classified as “well-capitalized.”
Net interest income was $52.2 million for the second quarter of 2014, as compared to $34.4 million for the second quarter of 2013 and $50.0 million for the first quarter of 2014. Net interest margin was 4.24% for the second quarter of 2014, as compared to 3.88% for the second quarter of 2013 and 4.04% for the first quarter of 2014.
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Noninterest income was $19.5 million for the second quarter of 2014, as compared to $17.3 million for the second quarter of 2013 and $18.6 million on a linked quarter basis. The Company’s increase in noninterest income year-over-year is primarily attributable to the First M&F merger, notably a 37% increase in service charges and a 120% increase in insurance commissions and fees. On a linked quarter basis, the Company’s growth in noninterest income was driven by higher levels of deposit and loan fees, and increased revenues generated from the Company’s insurance, wealth management and mortgage banking divisions.
Noninterest expense was $49.4 million for the second quarter of 2014, as compared to $37.7 million for the second quarter of 2013. The 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. The increase in expense was offset, however, by a significant reduction in costs associated with other real estate owned (“OREO”) as OREO expense decreased approximately 39.76% as compared to the second quarter of 2013. On a linked quarter comparison, noninterest expense increased primarily due to higher levels of salaries and employee benefits as a result of higher commissions on mortgage and insurance production and higher than anticipated health insurance claims.
At June 30, 2014, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $73.2 million and total OREO was $41.8 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 $52.4 million and $17.9 million, respectively, at June 30, 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
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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 $20.8 million as of June 30, 2014, as compared to $19.2 million as of December 31, 2013. Nonperforming loans as a percentage of total loans were 0.67% as of June 30, 2014, as compared to 0.66% as of December 31, 2013.
Annualized net charge-offs as a percentage of average loans were 0.23% for the second quarter of 2014, as compared to 0.35% for the second quarter of 2013. The Company recorded a provision for loan losses of $1.5 million for the second quarter of 2014, as compared to $3.0 million for the second quarter of 2013.
The allowance for loan losses totaled $47.3 million at June 30, 2014, as compared to $47.7 million as of December 31, 2013. The allowance for loan losses as a percentage of loans was 1.53% as of June 30, 2014, as compared to 1.65% as of December 31, 2013.
The Company’s coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 227.53% as of June 30, 2014, as compared to 248.90% as of December 31, 2013. Loans 30-to-89 days past due as a percentage of total loans declined to 0.25% at June 30, 2014, as compared to 0.31% at December 31, 2013. OREO was $23.9 million as of June 30, 2014, as compared to $27.5 million as of December 31, 2013.
“In closing, our quarterly results represent our efforts to increase profitability in an economic period where competition results in thin margins. Despite these headwinds, our strong commercial and mortgage loan pipelines and our continued focus on improving our efficiency positions us to be opportunistic and drive higher levels of future profitability,” stated McGraw.
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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 16, 2014.
The webcast and call can be accessed by pre-registering (preferred method) at http://dpregister.com/10049152 or visiting http://services.choruscall.com/links/rnst140716.html at the time of the call. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Second Quarter 2014 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 10049152 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until 9:00 AM ET on July 31, 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 $5.8 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
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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 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) | ||||||||||||||||||||||||||||||||||||||||
Q2 2014 - | For The Six Months Ending | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | Q2 2013 | June 30, | |||||||||||||||||||||||||||||||||||||
Second | First | Fourth | Third | Second | First | Percent | Percent | |||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Variance | 2014 | 2013 | Variance | |||||||||||||||||||||||||||||||
Statement of earnings | ||||||||||||||||||||||||||||||||||||||||
Interest income - taxable equivalent basis | $ | 60,004 | $ | 57,810 | $ | 58,644 | $ | 46,083 | $ | 41,331 | $ | 40,371 | 45.18 | $ | 117,814 | $ | 81,702 | 44.20 | ||||||||||||||||||||||
Interest income | $ | 58,277 | $ | 56,177 | $ | 57,076 | $ | 44,638 | $ | 39,945 | $ | 38,945 | 45.89 | $ | 114,454 | $ | 78,890 | 45.08 | ||||||||||||||||||||||
Interest expense | 6,108 | 6,206 | 6,408 | 5,890 | 5,541 | 5,564 | 10.23 | 12,314 | 11,105 | 10.89 | ||||||||||||||||||||||||||||||
Net interest income | 52,169 | 49,971 | 50,668 | 38,748 | 34,404 | 33,381 | 51.64 | 102,140 | 67,785 | 50.68 | ||||||||||||||||||||||||||||||
Provision for loan losses | 1,450 | 1,450 | 2,000 | 2,300 | 3,000 | 3,050 | (51.67 | ) | 2,900 | 6,050 | (52.07 | ) | ||||||||||||||||||||||||||||
Net interest income after provision | 50,719 | 48,521 | 48,668 | 36,448 | 31,404 | 30,331 | 61.50 | 99,240 | 61,735 | 60.75 | ||||||||||||||||||||||||||||||
Service charges on deposit accounts | 6,194 | 5,915 | 6,165 | 5,361 | 4,509 | 4,500 | 37.37 | 12,109 | 9,009 | 34.41 | ||||||||||||||||||||||||||||||
Fees and commissions on loans and deposits | 5,515 | 4,972 | 5,300 | 4,982 | 4,848 | 4,831 | 13.76 | 10,487 | 9,679 | 8.35 | ||||||||||||||||||||||||||||||
Insurance commissions and fees | 2,088 | 1,863 | 1,869 | 1,295 | 951 | 861 | 119.56 | 3,951 | 1,812 | 118.05 | ||||||||||||||||||||||||||||||
Wealth management revenue | 2,170 | 2,144 | 2,124 | 2,091 | 1,715 | 1,724 | 26.53 | 4,314 | 3,439 | 25.44 | ||||||||||||||||||||||||||||||
Securities gains (losses) | — | — | — | — | — | 54 | — | — | 54 | (100.00 | ) | |||||||||||||||||||||||||||||
Gain on sale of mortgage loans | 2,005 | 1,586 | 1,350 | 2,788 | 3,870 | 3,565 | (48.19 | ) | 3,591 | 7,435 | (51.70 | ) | ||||||||||||||||||||||||||||
Gain on acquisition | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other | 1,499 | 2,136 | 1,533 | 2,418 | 1,424 | 1,843 | 5.27 | 3,635 | 3,267 | 11.26 | ||||||||||||||||||||||||||||||
Total noninterest income | 19,471 | 18,616 | 18,341 | 18,935 | 17,317 | 17,378 | 12.44 | 38,087 | 34,695 | 9.78 | ||||||||||||||||||||||||||||||
Salaries and employee benefits | 29,810 | 28,428 | 29,911 | 25,689 | 21,906 | 21,274 | 36.08 | 58,238 | 43,180 | 34.87 | ||||||||||||||||||||||||||||||
Data processing | 2,850 | 2,695 | 2,546 | 2,236 | 2,045 | 2,043 | 39.36 | 5,545 | 4,088 | 35.64 | ||||||||||||||||||||||||||||||
Occupancy and equipment | 4,906 | 4,847 | 5,105 | 4,576 | 3,668 | 3,608 | 33.75 | 9,753 | 7,276 | 34.04 | ||||||||||||||||||||||||||||||
Other real estate | 1,068 | 1,701 | 1,607 | 1,537 | 1,773 | 2,049 | (39.76 | ) | 2,769 | 3,822 | (27.55 | ) | ||||||||||||||||||||||||||||
Amortization of intangibles | 1,427 | 1,471 | 1,508 | 724 | 314 | 323 | 354.46 | 2,898 | 637 | 354.95 | ||||||||||||||||||||||||||||||
Merger-related expenses | — | 195 | 1,879 | 3,763 | 385 | — | (100.00 | ) | 195 | 385 | (49.35 | ) | ||||||||||||||||||||||||||||
Debt extinguishment penalty | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other | 9,335 | 8,308 | 8,573 | 8,088 | 7,643 | 8,303 | 22.14 | 17,643 | 15,946 | 10.64 | ||||||||||||||||||||||||||||||
Total noninterest expense | 49,396 | 47,645 | 51,129 | 46,613 | 37,734 | 37,600 | 30.91 | 97,041 | 75,334 | 28.81 | ||||||||||||||||||||||||||||||
Income before income taxes | 20,794 | 19,492 | 15,880 | 8,770 | 10,987 | 10,109 | 89.26 | 40,286 | 21,096 | 90.97 | ||||||||||||||||||||||||||||||
Income taxes | 5,941 | 5,895 | 4,620 | 2,133 | 2,968 | 2,538 | 100.17 | 11,836 | 5,506 | 114.97 | ||||||||||||||||||||||||||||||
Net income | $ | 14,853 | $ | 13,597 | $ | 11,260 | $ | 6,637 | $ | 8,019 | $ | 7,571 | 85.22 | $ | 28,450 | $ | 15,590 | 82.49 | ||||||||||||||||||||||
Basic earnings per share | $ | 0.47 | $ | 0.43 | $ | 0.36 | $ | 0.24 | $ | 0.32 | $ | 0.30 | 46.88 | $ | 0.90 | $ | 0.62 | 45.16 | ||||||||||||||||||||||
Diluted earnings per share | 0.47 | 0.43 | 0.36 | 0.24 | 0.32 | 0.30 | 46.88 | 0.90 | 0.62 | 45.16 | ||||||||||||||||||||||||||||||
Average basic shares outstanding | 31,496,737 | 31,436,148 | 31,366,019 | 27,234,927 | 25,223,749 | 25,186,229 | 24.87 | 31,466,610 | 25,205,092 | 24.84 | ||||||||||||||||||||||||||||||
Average diluted shares outstanding | 31,698,198 | 31,724,474 | 31,617,681 | 27,447,382 | 25,373,868 | 25,288,785 | 24.92 | 31,682,496 | 25,334,898 | 25.05 | ||||||||||||||||||||||||||||||
Common shares outstanding | 31,519,541 | 31,480,395 | 31,387,668 | 31,358,583 | 25,231,074 | 25,208,733 | 24.92 | 31,519,641 | 25,231,074 | 24.92 | ||||||||||||||||||||||||||||||
Cash dividend per common share | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | — | $ | 0.34 | $ | 0.34 | — | ||||||||||||||||||||||
Performance ratios | ||||||||||||||||||||||||||||||||||||||||
Return on average shareholders' equity | 8.67 | % | 8.19 | % | 6.71 | % | 4.75 | % | 6.35 | % | 6.12 | % | 8.44 | % | 6.24 | % | ||||||||||||||||||||||||
Return on average tangible shareholders' equity | 16.55 | % | 16.05 | % | 13.55 | % | 8.74 | % | 10.47 | % | 10.19 | % | 16.31 | % | 10.34 | % | ||||||||||||||||||||||||
Return on average assets | 1.02 | % | 0.93 | % | 0.78 | % | 0.56 | % | 0.76 | % | 0.73 | % | 0.98 | % | 0.75 | % | ||||||||||||||||||||||||
Return on average tangible assets | 1.15 | % | 1.05 | % | 0.90 | % | 0.63 | % | 0.82 | % | 0.79 | % | 1.10 | % | 0.80 | % | ||||||||||||||||||||||||
Net interest margin (FTE) | 4.24 | % | 4.04 | % | 4.16 | % | 3.86 | % | 3.88 | % | 3.89 | % | 4.14 | % | 3.89 | % | ||||||||||||||||||||||||
Yield on earning assets (FTE) | 4.72 | % | 4.53 | % | 4.67 | % | 4.42 | % | 4.49 | % | 4.51 | % | 4.62 | % | 4.50 | % | ||||||||||||||||||||||||
Cost of funding | 0.48 | % | 0.48 | % | 0.51 | % | 0.57 | % | 0.60 | % | 0.62 | % | 0.48 | % | 0.61 | % | ||||||||||||||||||||||||
Average earning assets to average assets | 87.39 | % | 87.35 | % | 86.78 | % | 87.43 | % | 87.32 | % | 86.31 | % | 87.37 | % | 86.82 | % | ||||||||||||||||||||||||
Average loans to average deposits | 79.11 | % | 77.00 | % | 79.89 | % | 81.69 | % | 80.93 | % | 80.30 | % | 78.05 | % | 80.62 | % | ||||||||||||||||||||||||
Noninterest income (less securities gains/ | ||||||||||||||||||||||||||||||||||||||||
losses) to average assets | 1.34 | % | 1.27 | % | 1.27 | % | 1.59 | % | 1.64 | % | 1.67 | % | 1.31 | % | 1.66 | % | ||||||||||||||||||||||||
Noninterest expense (less debt prepayment penalties/ | ||||||||||||||||||||||||||||||||||||||||
merger-related expenses) to average assets | 3.39 | % | 3.25 | % | 3.40 | % | 3.59 | % | 3.54 | % | 3.63 | % | 3.32 | % | 3.58 | % | ||||||||||||||||||||||||
Net overhead ratio | 2.06 | % | 1.97 | % | 2.14 | % | 2.01 | % | 1.90 | % | 1.95 | % | 2.01 | % | 1.93 | % | ||||||||||||||||||||||||
Efficiency ratio (FTE)** | 65.38 | % | 65.48 | % | 67.65 | % | 71.25 | % | 69.74 | % | 71.51 | % | 65.43 | % | 70.61 | % | ||||||||||||||||||||||||
**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) | ||||||||||||||||||||||||||||||||||||||||
Q2 2014 - | For The Six Months Ending | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | Q2 2013 | June 30, | |||||||||||||||||||||||||||||||||||||
Second | First | Fourth | Third | Second | First | Percent | Percent | |||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Variance | 2014 | 2013 | Variance | |||||||||||||||||||||||||||||||
Average Balances | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,836,607 | $ | 5,927,884 | $ | 5,741,794 | $ | 4,729,079 | $ | 4,231,947 | $ | 4,206,411 | 37.92 | $ | 5,881,993 | $ | 4,219,250 | 39.41 | ||||||||||||||||||||||
Earning assets | 5,100,834 | 5,178,069 | 4,982,614 | 4,134,730 | 3,695,409 | 3,630,759 | 38.03 | 5,139,238 | 3,663,263 | 40.29 | ||||||||||||||||||||||||||||||
Securities | 1,026,948 | 1,002,519 | 924,179 | 819,351 | 754,515 | 698,863 | 36.11 | 1,014,801 | 726,843 | 39.62 | ||||||||||||||||||||||||||||||
Mortgage loans held for sale | 26,004 | 19,925 | 25,248 | 37,056 | 32,318 | 22,347 | (19.54 | ) | 22,981 | 27,360 | (16.01 | ) | ||||||||||||||||||||||||||||
Loans, net of unearned | 3,897,028 | 3,868,747 | 3,865,615 | 3,213,853 | 2,845,260 | 2,804,618 | 36.97 | 3,882,966 | 2,825,051 | 37.45 | ||||||||||||||||||||||||||||||
Intangibles | 302,181 | 303,599 | 304,388 | 227,606 | 190,362 | 190,787 | 58.74 | 302,886 | 190,573 | 58.93 | ||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 905,180 | $ | 949,317 | $ | 888,888 | $ | 660,415 | $ | 562,104 | $ | 549,514 | 61.03 | $ | 927,126 | $ | 555,844 | 66.80 | ||||||||||||||||||||||
Interest-bearing deposits | 4,020,754 | 4,074,746 | 3,949,909 | 3,273,658 | 2,953,435 | 2,943,247 | 36.14 | 4,047,601 | 2,948,369 | 37.28 | ||||||||||||||||||||||||||||||
Total deposits | 4,925,934 | 5,024,063 | 4,838,797 | 3,934,073 | 3,515,539 | 3,492,761 | 40.12 | 4,974,727 | 3,504,213 | 41.96 | ||||||||||||||||||||||||||||||
Borrowed funds | 169,373 | 170,091 | 173,583 | 189,909 | 164,894 | 163,981 | 2.72 | 169,730 | 164,440 | 3.22 | ||||||||||||||||||||||||||||||
Shareholders' equity | 686,794 | 673,047 | 665,513 | 553,772 | 506,225 | 501,634 | 35.67 | 679,959 | 503,942 | 34.93 | ||||||||||||||||||||||||||||||
Q2 2014 - | As of | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | Q4 2013 | June 30, | |||||||||||||||||||||||||||||||||||||
Second | First | Fourth | Third | Second | First | Percent | Percent | |||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Variance | 2014 | 2013 | Variance | |||||||||||||||||||||||||||||||
Balances at period end | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,826,020 | $ | 5,902,831 | $ | 5,746,270 | $ | 5,735,865 | $ | 4,242,401 | $ | 4,267,658 | 1.39 | $ | 5,826,020 | $ | 4,242,401 | 37.33 | ||||||||||||||||||||||
Earning assets | 5,069,743 | 5,168,996 | 4,999,434 | 4,972,051 | 3,715,321 | 3,706,707 | 1.41 | 5,069,743 | 3,715,321 | 36.46 | ||||||||||||||||||||||||||||||
Securities | 1,013,200 | 1,054,511 | 925,670 | 915,869 | 746,530 | 740,613 | 9.46 | 1,013,200 | 746,530 | 35.72 | ||||||||||||||||||||||||||||||
Mortgage loans held for sale | 28,116 | 28,433 | 33,440 | 28,466 | 50,268 | 26,286 | (15.92 | ) | 28,116 | 50,268 | (44.07 | ) | ||||||||||||||||||||||||||||
Loans acquired from M&F | 694,115 | 746,047 | 813,451 | 891,420 | — | — | (14.67 | ) | 694,115 | — | ||||||||||||||||||||||||||||||
Loans not acquired | 3,096,286 | 2,947,836 | 2,885,802 | 2,794,116 | 2,683,017 | 2,594,438 | 7.29 | 3,096,286 | 2,683,017 | 15.40 | ||||||||||||||||||||||||||||||
Loans acquired and subject to loss share | 167,129 | 173,545 | 181,765 | 195,996 | 201,494 | 213,872 | (8.05 | ) | 167,129 | 201,494 | (17.06 | ) | ||||||||||||||||||||||||||||
Total loans | 3,957,530 | 3,867,428 | 3,881,018 | 3,881,532 | 2,884,511 | 2,808,310 | 1.97 | 3,957,530 | 2,884,511 | 37.20 | ||||||||||||||||||||||||||||||
Intangibles | 301,478 | 302,903 | 304,330 | 305,065 | 190,208 | 190,522 | (0.94 | ) | 301,478 | 190,208 | 58.50 | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 902,766 | $ | 914,964 | $ | 856,020 | $ | 876,138 | $ | 560,965 | $ | 567,065 | 5.46 | $ | 902,766 | $ | 560,965 | 60.93 | ||||||||||||||||||||||
Interest-bearing deposits | 3,983,965 | 4,089,820 | 3,985,892 | 3,958,618 | 2,944,193 | 2,988,110 | (0.05 | ) | 3,983,965 | 2,944,193 | 35.32 | |||||||||||||||||||||||||||||
Total deposits | 4,886,731 | 5,004,784 | 4,841,912 | 4,834,756 | 3,505,158 | 3,555,175 | 0.93 | 4,886,731 | 3,505,158 | 39.42 | ||||||||||||||||||||||||||||||
Borrowed funds | 189,831 | 168,700 | 171,875 | 177,168 | 195,789 | 164,063 | 10.45 | 189,831 | 195,789 | (3.04 | ) | |||||||||||||||||||||||||||||
Shareholders' equity | 688,215 | 676,715 | 665,652 | 657,256 | 500,678 | 502,375 | 3.39 | 688,215 | 500,678 | 37.46 | ||||||||||||||||||||||||||||||
Market value per common share | $ | 29.07 | $ | 29.05 | $ | 31.46 | $ | 27.17 | $ | 24.34 | $ | 22.38 | (7.60 | ) | $ | 29.07 | $ | 24.34 | 19.43 | |||||||||||||||||||||
Book value per common share | 21.83 | 21.50 | 21.21 | 20.96 | 19.84 | 19.93 | 2.92 | 21.83 | 19.84 | 10.03 | ||||||||||||||||||||||||||||||
Tangible book value per common share | 12.27 | 11.87 | 11.51 | 11.23 | 12.31 | 12.37 | 6.60 | 12.27 | 12.31 | (0.32 | ) | |||||||||||||||||||||||||||||
Shareholders' equity to assets (actual) | 11.81 | % | 11.46 | % | 11.58 | % | 11.46 | % | 11.80 | % | 11.77 | % | 1.99 | 11.81 | % | 11.80 | % | 0.08 | ||||||||||||||||||||||
Tangible capital ratio | 7.00 | % | 6.68 | % | 6.64 | % | 6.49 | % | 7.66 | % | 7.65 | % | 5.42 | 7.00 | % | 7.66 | % | (8.62 | ) | |||||||||||||||||||||
Leverage ratio | 8.91 | % | 8.56 | % | 8.68 | % | 8.61 | % | 9.83 | % | 9.79 | % | 2.65 | 8.91 | % | 9.83 | % | (9.36 | ) | |||||||||||||||||||||
Tier 1 risk-based capital ratio | 11.82 | % | 11.55 | % | 11.41 | % | 11.34 | % | 12.87 | % | 12.86 | % | 3.59 | 11.82 | % | 12.87 | % | (8.16 | ) | |||||||||||||||||||||
Total risk-based capital ratio | 12.96 | % | 12.72 | % | 12.58 | % | 12.47 | % | 14.14 | % | 14.13 | % | 3.02 | 12.96 | % | 14.14 | % | (8.35 | ) | |||||||||||||||||||||
9
RENASANT CORPORATION | ||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||
Q2 2014 - | As of | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | Q4 2013 | June 30, | |||||||||||||||||||||||||||||||||||||
Second | First | Fourth | Third | Second | First | Percent | Percent | |||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Variance | 2014 | 2013 | Variance | |||||||||||||||||||||||||||||||
Loans not acquired | ||||||||||||||||||||||||||||||||||||||||
Commercial, financial, agricultural | $ | 365,262 | $ | 347,828 | $ | 341,600 | $ | 331,142 | $ | 307,718 | $ | 298,013 | 6.93 | $ | 365,262 | $ | 307,718 | 18.70 | ||||||||||||||||||||||
Lease Financing | 1,767 | 612 | 52 | 75 | 103 | 162 | 3,298.08 | 1,767 | 103 | 1,615.53 | ||||||||||||||||||||||||||||||
Real estate- construction | 172,319 | 149,450 | 147,075 | 127,013 | 117,339 | 109,484 | 17.16 | 172,319 | 117,339 | 46.86 | ||||||||||||||||||||||||||||||
Real estate - 1-4 family mortgages | 966,546 | 941,260 | 928,803 | 891,422 | 859,884 | 834,204 | 4.06 | 966,546 | 859,884 | 12.40 | ||||||||||||||||||||||||||||||
Real estate - commercial mortgages | 1,516,372 | 1,441,403 | 1,404,617 | 1,383,680 | 1,335,402 | 1,295,213 | 7.96 | 1,516,372 | 1,335,402 | 13.55 | ||||||||||||||||||||||||||||||
Installment loans to individuals | 74,020 | 67,283 | 63,655 | 60,784 | 62,571 | 57,362 | 16.28 | 74,020 | 62,571 | 18.30 | ||||||||||||||||||||||||||||||
Loans, net of unearned | $ | 3,096,286 | $ | 2,947,836 | $ | 2,885,802 | $ | 2,794,116 | $ | 2,683,017 | $ | 2,594,438 | 7.29 | $ | 3,096,286 | $ | 2,683,017 | 15.40 | ||||||||||||||||||||||
Loans acquired and subject to loss share | ||||||||||||||||||||||||||||||||||||||||
Commercial, financial, agricultural | $ | 7,677 | $ | 8,283 | $ | 9,546 | $ | 10,280 | $ | 10,283 | $ | 10,157 | (19.58 | ) | $ | 7,677 | $ | 10,283 | (25.34 | ) | ||||||||||||||||||||
Lease Financing | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Real estate- construction | 1,648 | 1,648 | 1,648 | 1,648 | 1,648 | 1,648 | — | 1,648 | 1,648 | — | ||||||||||||||||||||||||||||||
Real estate - 1-4 family mortgages | 49,616 | 52,252 | 54,466 | 56,722 | 60,409 | 65,489 | (8.90 | ) | 49,616 | 60,409 | (17.87 | ) | ||||||||||||||||||||||||||||
Real estate - commercial mortgages | 108,166 | 111,337 | 116,077 | 127,315 | 129,120 | 136,541 | (6.82 | ) | 108,166 | 129,120 | (16.23 | ) | ||||||||||||||||||||||||||||
Installment loans to individuals | 22 | 25 | 28 | 31 | 34 | 37 | (21.43 | ) | 22 | 34 | (35.29 | ) | ||||||||||||||||||||||||||||
Loans, net of unearned | $ | 167,129 | $ | 173,545 | $ | 181,765 | $ | 195,996 | $ | 201,494 | $ | 213,872 | (8.05 | ) | $ | 167,129 | $ | 201,494 | (17.06 | ) | ||||||||||||||||||||
Loans acquired from M&F | ||||||||||||||||||||||||||||||||||||||||
Commercial, financial, agricultural | $ | 74,887 | $ | 84,004 | $ | 117,817 | $ | 139,821 | $ | — | $ | — | (36.44 | ) | $ | 74,887 | $ | — | — | |||||||||||||||||||||
Lease Financing | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Real estate- construction | 2,610 | 4,803 | 12,713 | 23,556 | — | — | (79.47 | ) | 2,610 | — | — | |||||||||||||||||||||||||||||
Real estate - 1-4 family mortgages | 205,126 | 217,748 | 224,965 | 244,079 | — | — | (8.82 | ) | 205,126 | — | — | |||||||||||||||||||||||||||||
Real estate - commercial mortgages | 390,781 | 415,418 | 429,878 | 449,589 | — | — | (9.09 | ) | 390,781 | — | — | |||||||||||||||||||||||||||||
Installment loans to individuals | 20,711 | 24,074 | 28,078 | 34,375 | — | — | (26.24 | ) | 20,711 | — | — | |||||||||||||||||||||||||||||
Loans, net of unearned | $ | 694,115 | $ | 746,047 | $ | 813,451 | $ | 891,420 | $ | — | $ | — | (14.67 | ) | $ | 694,115 | $ | — | — | |||||||||||||||||||||
Asset quality data | ||||||||||||||||||||||||||||||||||||||||
Assets not acquired: | ||||||||||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 17,175 | $ | 18,365 | $ | 16,863 | $ | 19,995 | $ | 20,554 | $ | 25,382 | 1.85 | $ | 17,175 | $ | 20,554 | (16.44 | ) | |||||||||||||||||||||
Loans 90 past due or more | 3,615 | 1,322 | 2,287 | 2,078 | 1,983 | 2,601 | 58.07 | 3,615 | 1,983 | 82.30 | ||||||||||||||||||||||||||||||
Nonperforming loans | 20,790 | 19,687 | 19,150 | 22,073 | 22,537 | 27,983 | 8.56 | 20,790 | 22,537 | (7.75 | ) | |||||||||||||||||||||||||||||
Other real estate owned | 23,950 | 25,117 | 27,543 | 27,357 | 33,247 | 39,786 | (13.05 | ) | 23,950 | 33,247 | (27.96 | ) | ||||||||||||||||||||||||||||
Nonperforming assets not acquired | $ | 44,740 | $ | 44,804 | $ | 46,693 | $ | 49,430 | $ | 55,784 | $ | 67,769 | (4.18 | ) | $ | 44,740 | $ | 55,784 | (19.80 | ) | ||||||||||||||||||||
Assets acquired and subject to loss share: | ||||||||||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 41,425 | $ | 46,078 | $ | 49,194 | $ | 49,585 | $ | 47,281 | # | $ | 47,972 | (15.79 | ) | $ | 41,425 | $ | 47,281 | (12.39 | ) | |||||||||||||||||||
Loans 90 past due or more | — | 32 | — | 505 | 126 | # | — | — | — | 126 | (100.00 | ) | ||||||||||||||||||||||||||||
Nonperforming loans | 41,425 | 46,110 | 49,194 | 50,090 | 47,407 | # | 47,972 | (15.79 | ) | 41,425 | 47,407 | (12.62 | ) | |||||||||||||||||||||||||||
Other real estate owned | 7,472 | 10,218 | 12,942 | 16,580 | 27,835 | # | 35,095 | (42.27 | ) | 7,472 | 27,835 | (73.16 | ) | |||||||||||||||||||||||||||
Nonperforming assets acquired and subject to loss share | $ | 48,897 | $ | 56,328 | $ | 62,136 | $ | 66,670 | $ | 75,242 | # | $ | 83,067 | (21.31 | ) | $ | 48,897 | $ | 75,242 | (35.01 | ) | |||||||||||||||||||
Assets acquired from M&F: | ||||||||||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 5,966 | $ | 6,393 | $ | 6,275 | $ | 224 | $ | — | # | $ | — | (4.92 | ) | $ | 5,966 | $ | — | — | ||||||||||||||||||||
Loans 90 past due or more | 5,057 | 1,922 | 1,899 | 8,568 | — | # | — | 166.30 | 5,057 | — | — | |||||||||||||||||||||||||||||
Nonperforming loans | 11,023 | 8,315 | 8,174 | 8,792 | — | # | — | 34.85 | 11,023 | — | — | |||||||||||||||||||||||||||||
Other real estate owned | 10,381 | 12,406 | 12,402 | 13,223 | — | # | — | (16.30 | ) | 10,381 | — | — | ||||||||||||||||||||||||||||
Nonperforming assets acquired from M&F | $ | 21,404 | $ | 20,721 | $ | 20,576 | $ | 22,015 | $ | — | # | $ | — | 4.02 | $ | 21,404 | $ | — | — | |||||||||||||||||||||
Net loan charge-offs (recoveries) | $ | 2,195 | $ | 1,067 | $ | 584 | $ | 3,084 | $ | 2,471 | $ | 893 | 275.86 | $ | 3,262 | $ | 3,364 | (3.03 | ) | |||||||||||||||||||||
Allowance for loan losses | 47,304 | 48,048 | 47,666 | 46,250 | 47,034 | 46,505 | (0.76 | ) | 47,304 | 47,034 | 0.57 | |||||||||||||||||||||||||||||
Annualized net loan charge-offs / average loans | 0.23 | % | 0.11 | % | 0.06 | % | 0.38 | % | 0.35 | % | 0.13 | % | 0.17 | % | 0.24 | % | ||||||||||||||||||||||||
Nonperforming loans / total loans* | 1.85 | % | 1.92 | % | 0.74 | % | 0.84 | % | 0.84 | % | 1.08 | % | 1.85 | % | 2.42 | % | ||||||||||||||||||||||||
Nonperforming assets / total assets* | 1.97 | % | 2.06 | % | 1.17 | % | 1.25 | % | 1.31 | % | 1.59 | % | 1.97 | % | 3.09 | % | ||||||||||||||||||||||||
Allowance for loan losses / total loans* | 1.20 | % | 1.24 | % | 1.29 | % | 1.25 | % | 1.75 | % | 1.79 | % | 1.20 | % | 1.63 | % | ||||||||||||||||||||||||
Allowance for loan losses / nonperforming loans* | 64.59 | % | 64.83 | % | 174.45 | % | 149.85 | % | 208.70 | % | 166.19 | % | 64.59 | % | 67.25 | % | ||||||||||||||||||||||||
Nonperforming loans / total loans** | 0.67 | % | 0.67 | % | 0.66 | % | 0.79 | % | 0.84 | % | 1.08 | % | 0.67 | % | 0.84 | % | ||||||||||||||||||||||||
Nonperforming assets / total assets** | 0.77 | % | 0.76 | % | 0.81 | % | 0.86 | % | 1.31 | % | 1.59 | % | 0.77 | % | 1.31 | % | ||||||||||||||||||||||||
Allowance for loan losses / total loans** | 1.53 | % | 1.63 | % | 1.65 | % | 1.66 | % | 1.75 | % | 1.79 | % | 1.53 | % | 1.75 | % | ||||||||||||||||||||||||
Allowance for loan losses / nonperforming loans** | 227.53 | % | 244.06 | % | 248.91 | % | 209.53 | % | 208.70 | % | 166.19 | % | 227.53 | % | 208.70 | % | ||||||||||||||||||||||||
*Based on all assets (includes acquired assets) | ||||||||||||||||||||||||||||||||||||||||
**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 Six Months Ending | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | June 30, | ||||||||||||||||||||||||||||||||||||||
Second | First | Fourth | Third | Second | First | |||||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Net income (GAAP) | $ | 14,853 | $ | 13,597 | $ | 11,260 | $ | 6,637 | $ | 8,019 | $ | 7,571 | $ | 28,450 | $ | 15,590 | ||||||||||||||||||||||||
Amortization of intangibles, net of tax | 1,019 | 1,026 | 1,069 | 548 | 229 | 242 | 2,047 | 471 | ||||||||||||||||||||||||||||||||
Tangible net income (non-GAAP) | $ | 15,872 | $ | 14,623 | $ | 12,329 | $ | 7,185 | $ | 8,248 | $ | 7,813 | $ | 30,497 | $ | 16,061 | ||||||||||||||||||||||||
Average shareholders' equity (GAAP) | $ | 686,794 | $ | 673,047 | $ | 665,513 | $ | 553,772 | $ | 506,225 | $ | 501,634 | $ | 679,959 | $ | 503,942 | ||||||||||||||||||||||||
Intangibles | 302,181 | 303,599 | 304,388 | 227,606 | 190,362 | 190,787 | 302,886 | 190,573 | ||||||||||||||||||||||||||||||||
Average tangible s/h's equity (non-GAAP) | $ | 384,613 | $ | 369,448 | $ | 361,125 | $ | 326,166 | $ | 315,863 | $ | 310,847 | $ | 377,073 | $ | 313,369 | ||||||||||||||||||||||||
Average total assets (GAAP) | $ | 5,836,607 | $ | 5,927,920 | $ | 5,741,794 | $ | 4,729,079 | $ | 4,231,947 | $ | 4,206,411 | $ | 5,881,993 | $ | 4,219,250 | ||||||||||||||||||||||||
Intangibles | 302,181 | 303,599 | 304,388 | 227,606 | 190,362 | 190,787 | 302,886 | 190,573 | ||||||||||||||||||||||||||||||||
Average tangible assets (non-GAAP) | $ | 5,534,426 | $ | 5,624,321 | $ | 5,437,406 | $ | 4,501,473 | $ | 4,041,585 | $ | 4,015,624 | $ | 5,579,107 | $ | 4,028,677 | ||||||||||||||||||||||||
Actual total assets (GAAP) | $ | 5,826,020 | $ | 5,906,071 | $ | 5,746,270 | $ | 5,735,865 | $ | 4,242,401 | $ | 4,267,658 | $ | 5,826,020 | $ | 4,242,401 | ||||||||||||||||||||||||
Intangibles | 301,478 | 302,903 | 304,330 | 305,065 | 190,208 | 190,522 | 301,478 | 190,208 | ||||||||||||||||||||||||||||||||
Actual tangible assets (non-GAAP) | $ | 5,524,542 | $ | 5,603,168 | $ | 5,441,940 | $ | 5,430,800 | $ | 4,052,193 | $ | 4,077,136 | $ | 5,524,542 | $ | 4,052,193 | ||||||||||||||||||||||||
(1) Return on Average Equity | ||||||||||||||||||||||||||||||||||||||||
Return on avg s/h's equity (GAAP) | 8.67 | % | 8.19 | % | 6.71 | % | 4.75 | % | 6.35 | % | 6.12 | % | 8.44 | % | 6.24 | % | ||||||||||||||||||||||||
Effect of adjustment for intangible assets | 7.88 | % | 7.86 | % | 6.83 | % | 3.98 | % | 4.12 | % | 4.07 | % | 7.87 | % | 4.10 | % | ||||||||||||||||||||||||
Return on avg tangible s/h's equity (non-GAAP) | 16.55 | % | 16.05 | % | 13.55 | % | 8.74 | % | 10.47 | % | 10.19 | % | 16.31 | % | 10.34 | % | ||||||||||||||||||||||||
(2) Return on Average Assets | ||||||||||||||||||||||||||||||||||||||||
Return on (average) assets (GAAP) | 1.02 | % | 0.93 | % | 0.78 | % | 0.56 | % | 0.76 | % | 0.73 | % | 0.98 | % | 0.75 | % | ||||||||||||||||||||||||
Effect of adjustment for intangible assets | 0.13 | % | 0.12 | % | 0.12 | % | 0.08 | % | 0.06 | % | 0.06 | % | 0.13 | % | 0.06 | % | ||||||||||||||||||||||||
Return on average tangible assets (non-GAAP) | 1.15 | % | 1.05 | % | 0.90 | % | 0.63 | % | 0.82 | % | 0.79 | % | 1.10 | % | 0.80 | % | ||||||||||||||||||||||||
(3) Shareholder Equity Ratio | ||||||||||||||||||||||||||||||||||||||||
Shareholders' equity to (actual) assets (GAAP) | 11.81 | % | 11.46 | % | 11.58 | % | 11.46 | % | 11.80 | % | 11.77 | % | 11.81 | % | 11.80 | % | ||||||||||||||||||||||||
Effect of adjustment for intangible assets | 4.81 | % | 4.79 | % | 4.94 | % | 4.97 | % | 4.14 | % | 4.12 | % | 4.81 | % | 4.14 | % | ||||||||||||||||||||||||
Tangible capital ratio (non-GAAP) | 7.00 | % | 6.68 | % | 6.64 | % | 6.49 | % | 7.66 | % | 7.65 | % | 7.00 | % | 7.66 | % | ||||||||||||||||||||||||
11