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Renasant Corporation Announces Earnings For The Third Quarter Of 2018




TUPELO, Miss., Oct. 22, 2018 /PRNewswire/ -- Renasant Corporation (RNST) (the "Company") today announced earnings results for the three-month and nine-month periods ended September 30, 2018. Net income for the third quarter of 2018 was $32.0 million, an increase of 20.98%, as compared to $26.4 million for the third quarter of 2017. Basic and diluted earnings per share ("EPS") were $0.61 for the third quarter of 2018, as compared to basic and diluted EPS of $0.54 and $0.53, respectively, for the third quarter of 2017.

Renasant Corporation logo. (PRNewsFoto/Renasant Corporation) (PRNewsFoto/) (PRNewsfoto/Renasant Corporation)

Net income for the nine months ending September 30, 2018, was $102.5 million, an increase of 35.44%, as compared to $75.7 million for the same time period in 2017. Basic and diluted EPS were $2.03 for the first nine months of 2018, as compared to basic and diluted EPS of $1.64 for the same time period in 2017.

Brand Acquisition

The Company completed its acquisition by merger of Brand Group Holdings, Inc. ("Brand") on September 1, 2018.  As of the acquisition date, Brand operated 13 locations throughout the greater Atlanta market and, prior to purchase accounting adjustments, had approximately $2.0 billion in assets, which included approximately $1.6 billion in loans, and approximately $1.7 billion in deposits. The Company's balance sheet and results of operations as of and for the three and nine months ended September 30, 2018, include the impact of the Company's acquisition of Brand since the acquisition date. The assets acquired and liabilities assumed, as presented in the table below, have been recorded at estimated fair value and are subject to change pending finalization of all valuations.


(in thousands)


September 1, 2018

Cash and cash equivalents


$

193,436


Securities


70,123


Loans including loans held for sale, net of unearned income


1,593,894


Premises and equipment


20,782


Intangible assets


343,569


Other assets


113,324


Total assets


$

2,335,128





Deposits


$

1,714,177


Borrowings


90,912


Other liabilities


95,520




$

1,900,609





As part of the merger agreement, Brand agreed to divest the operations of its subsidiary Brand Mortgage Group, LLC ("BMG").  Prior to completing the merger, Brand had entered into an agreement to sell BMG, and the Company currently anticipates that this transaction will be completed in the fourth quarter of 2018 following the receipt of all necessary regulatory approvals.  As a result, the balance sheet and results of operations of BMG are included in the Company's results for the third quarter of 2018 since the acquisition date and will continue to be included in the Company's balance sheet and consolidated results of operations until the sale is completed.  The following table summarizes the significant assets acquired and liabilities assumed from BMG:

 


(in thousands)


September 1, 2018

Loans held for sale


48,100


Borrowings


34,139





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, except per share data):

  


Three months ended 
September 30, 2018


Three months ended
September 30, 2017


Pre-tax

After-tax

Impact to Diluted EPS


Pre-tax

After-tax

Impact to Diluted EPS

Merger and conversion expenses

$

11,221


$

8,857


$

0.17



$

6,266


$

4,075


$

0.09



 



Nine months ended 
September 30, 2018


Nine months ended 

September 30, 2017


Pre-tax

After-tax

Impact to Diluted EPS


Pre-tax

After-tax

Impact to Diluted EPS

Merger and conversion expenses

$

12,621


$

9,866


$

0.20



$

9,655


$

6,459


$

0.14


Debt prepayment penalty





205


137




 


"We are pleased with our strong results for the third quarter of 2018, which are highlighted by a stable core margin and a significant improvement in our core efficiency ratio. After excluding the impact from merger and conversion expenses associated with our recent acquisition of Brand, we once again achieved record earnings and earnings per share," said Renasant Executive Chairman, E. Robinson McGraw.  "Our successful quarter is further evidenced by our strong profitability metrics as return on average tangible assets and average tangible equity, when excluding merger and conversion expenses, have continued to improve from prior quarters."

"As we look ahead, we anticipate strong future results as we continue to capitalize on opportunities for profitable organic balance sheet growth and focus on margin management, disciplined loan underwriting, prudent provisioning for loan losses and continued management of expenses to further improve our efficiency ratio," said C. Mitchell Waycaster, Renasant President and Chief Executive Officer.  "Additionally, we successfully completed the Brand merger during the third quarter.  The integration of Brand has gone smoothly, and we expect the same for the client conversion later this quarter."

Profitability Metrics

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




Three Months Ended


Nine Months Ended


September 30, 2018


September 30, 2018


As Reported

Excluding merger and conversion expenses(Non-GAAP)


As Reported

Excluding merger and conversion expenses (Non-GAAP)

Return on average assets

1.12

%

1.44

%


1.30

%

1.42

%

Return on average tangible assets (Non-GAAP)

1.26

%

1.59

%


1.44

%

1.57

%

Return on average equity

7.40

%

9.46

%


8.60

%

9.43

%

Return on average tangible equity (Non-GAAP)

13.65

%

17.28

%


15.42

%

16.85

%


 


A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release.

Financial Condition

Total assets were $12.7 billion at September 30, 2018, as compared to $9.8 billion at December 31, 2017.

Total loans increased to $9.1 billion at September 30, 2018, from $7.6 billion at December 31, 2017.  Loans not purchased increased to $6.2 billion at September 30, 2018, from $5.6 billion at December 31, 2017. Loan production for the third quarter and first nine months of 2018 was $404 million and $1.3 billion, respectively, as compared to $370 million and $1.1 billion for the same periods, respectively, in 2017. As of the acquisition date, Brand added $1.3 billion in loans held for investment.

Total deposits increased to $10.2 billion at September 30, 2018, from $7.9 billion at December 31, 2017. Non-interest bearing deposits averaged $1.9 billion, or 22.51% of average deposits, for the first nine months of 2018, compared to $1.7 billion, or 22.40% of average deposits, for the same period in 2017.  As of the acquisition date, Brand added $1.7 billion in deposits, which included $433.4 million in non-interest bearing deposits.

At September 30, 2018, Tier 1 leverage capital ratio was 9.85%, Common Equity Tier 1 ratio was 10.80%, Tier 1 risk-based capital ratio was 11.84%, and total risk-based capital ratio was 13.85%. All regulatory ratios exceed the minimums required to be considered "well-capitalized."

Our ratio of shareholders' equity to assets was 15.77% at September 30, 2018, as compared to 15.41% at December 31, 2017. Our tangible capital ratio (non-GAAP) was 8.80% at September 30, 2018, as compared to 9.56% at December 31, 2017.

Results of Operations

Net interest income was $99.4 million for the third quarter of 2018, as compared to $92.4 million for the second quarter of 2018 and $90.0 million for third quarter of 2017. The following table presents reported taxable equivalent net interest margin and yield on loans for the periods presented (in thousands).  




Three Months Ended


September 30,

June 30,

September 30,


2018

2018

2017

Taxable equivalent net interest income

$

100,880


$

93,806


$

91,935






Average earning assets

$

9,843,870


$

9,067,016


$

8,944,067






Net interest margin

4.07

%

4.15

%

4.08

%





Taxable equivalent interest income on loans

$

105,722


$

97,045


$

90,693






Average loans

$

8,228,053


$

7,704,221


$

7,375,410






Loan yield

5.10

%

5.05

%

4.88

%




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





Three Months Ended


September 30,

June 30,

September 30,


2018

2018

2017

Net interest income collected on problem loans

$

714


$

1,045


$

963


Accretable yield recognized on purchased loans(1)

5,261


5,719


6,259


Total impact to interest income

$

5,975


$

6,764


$

7,222






Impact to loan yield

0.29

%

0.35

%

0.39

%





Impact to net interest margin

0.24

%

0.30

%

0.32

%

 

 


(1)   

Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $2,570, $3,316 and $2,770 for the three months ended September 30, 2018, June 30, 2018, and September 30, 2017, respectively. This additional interest income increased loan yield by 12 basis points, 17 basis points and 15 basis points for the same periods, respectively, while increasing net interest margin by 10 basis points, 15 basis points and 12 basis points for the same periods, respectively.



Net interest income was $281.1 million for the first nine months of 2018, as compared to $243.6 million for the same period in 2017. The following table presents reported taxable equivalent net interest margin and loan yield for the periods presented (in thousands).  



Nine Months Ended


September 30,


September 30,


2018


2017

Taxable equivalent net interest income

$

285,493



$

249,295






Average earning assets

$

9,227,822



$

8,094,838






Net interest margin

4.14

%


4.12

%





Taxable equivalent interest income on loans

$

296,140



$

243,260






Average loans

$

7,861,883



$

6,626,848






Loan yield

5.04

%


4.91

%



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



Nine Months Ended


September 30,


September 30,


2018


2017

Net interest income collected on problem loans

$

2,117



$

4,264


Accretable yield recognized on purchased loans(1)

17,098



17,273


Total impact to interest income

$

19,215



$

21,537






Impact to loan yield

0.33

%


0.44

%





Impact to net interest margin

0.28

%


0.36

%



 

(1)    

Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $9,244 and $8,185 for the nine months ended September 30, 2018 and September 30, 2017, respectively, which increased loan yield by 16 basis points and 17 basis points for the same periods, respectively, while increasing net interest margin by 13 basis points and 14 basis points for the same periods, respectively.



For the third quarter of 2018, the cost of total deposits was 60 basis points, as compared to 52 basis points for the second quarter of 2018 and 33 basis points in the third quarter of 2017. The cost of total deposits was 51 basis points for the first nine months of 2018, as compared to 31 basis points for the same time period in 2017. The following tables present the mix and cost of all funding sources for the three and nine months ended September 30, 2018 and 2017 as well as for the three months ending June 30, 2018.  



Percentage of Total Average Deposits and
Borrowed Funds


Cost of Funds


Three Months Ending


Three Months Ending


September 30,


June 30,


September 30,


September 30,


June 30,


September 30,


2018


2018


2017


2018


2018


2017

Noninterest-bearing demand

21.68

%


21.43

%


21.30

%


%


%


%

Interest-bearing demand

45.01



46.51



44.55



0.62



0.54



0.28


Savings

6.31



6.80



6.63



0.15



0.15



0.07


Time deposits

21.73



21.48



20.89



1.29



1.12



0.87


Borrowed funds

5.27



3.78



6.63



3.82



3.98



2.65


Total deposits and borrowed funds

100.00

%


100.00

%


100.00

%


0.77

%


0.65

%


0.49

%


 



Percentage of Total Average Deposits and Borrowed Funds


Cost of Funds


Nine Months Ending


Nine Months Ending


September 30,


September 30,


September 30,


September 30,


2018


2017


2018


2017

Noninterest-bearing demand

21.55

%


21.36

%


%


%

Interest-bearing demand

45.91



45.33



0.51



0.24


Savings

6.65



7.23



0.14



0.07


Time deposits

21.60



21.43



1.15



0.84


Borrowed funds

4.29



4.65



3.91



3.38


Total deposits and borrowed funds

100.00

%


100.00

%


0.66

%


0.45

%


 


Noninterest income for the third quarter of 2018 was $38.1 million, as compared to $35.6 million for the second quarter of 2018 and $33.4 million for the third quarter of 2017. Noninterest income for the first nine months of 2018 was $107.6 million, as compared to $99.7 million for the same period in 2017. The linked quarter increase is primarily attributable to the Brand acquisition. Mortgage banking income for the third quarter of 2018 was $14.4 million, compared to $12.8 million for the second quarter of 2018 and $10.6 million for the third quarter of 2017. Mortgage banking income for the first nine months of 2018 was $38.1 million, as compared to $33.5 million for the same period in 2017. BMG contributed $1.7 million to mortgage banking income during the three and nine months ended September 30, 2018.

Noninterest expense was $94.7 million for the third quarter of 2018, as compared to $79.0 million for the second quarter of 2018 and $80.7 million for the third quarter of 2017. Noninterest expense for the first nine months of 2018 was $251.7 million, as compared to $224.8 million for the same period in 2017. Noninterest expense for the three and nine months ended September 30, 2018 includes $2.0 million attributable to BMG.

Excluding charges for merger and conversion expenses, amortization of intangible assets and losses on the sale of securities, the Company's efficiency ratio (non-GAAP) was 58.84% and 59.55% for the third quarter and first nine months of 2018, respectively, which exceeded the Company's goal of maintaining an efficiency ratio below 60%.

Asset Quality Metrics

Total nonperforming assets were $38.9 million at September 30, 2018, as compared to $39.4 million at December 31, 2017, and at September 30, 2018, consisted of $26.3 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $12.6 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 $12.8 million and $7.9 million, respectively, at September 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.

  • Non-purchased nonperforming loans were $13.5 million, or 0.22% of total non-purchased loans, at September 30, 2018, as compared to $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 0.24% at September 30, 2018, as compared to 0.30% at December 31, 2017.
  • Non-purchased OREO was $4.7 million at September 30, 2018, as compared to $4.4 million at December 31, 2017. OREO sales totaled $1.3 million in the first nine months of 2018.
  • The allowance for loan losses was 0.53% of total loans at September 30, 2018 and 0.61% of total loans at December 31, 2017. The allowance for loan losses was 0.78% of non-purchased loans at September 30, 2018, as compared to 0.83% 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 Tuesday, October 23, 2018.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or https://services.choruscall.com/links/rnst181023.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Third 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 10125038 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until November 6, 2018.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 114-year-old financial services institution. Renasant has assets of approximately $12.7 billion and operates more than 190 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 (such as merger and conversion expenses and debt prepayment penalties) with respect to which the Company is unable to accurately predict the timing of when these charges will be incurred or, when incurred, the amount thereof. 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 charges such as merger and conversion expenses 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.




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

 

 

 

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)









Q3 2018 -


For The Nine Months Ending





2018


2017


Q3 2017


September 30,






Third


Second


First


Fourth


Third


Second


First


Percent






Percent



Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Variance


2018


2017


Variance

Statement of earnings























Interest income - taxable equivalent basis


$

119,236



$

107,991



$

101,947



$

107,773



$

102,613



$

89,429



$

83,781



16.20



$

329,174



$

275,823



19.34


Interest income


$

117,795



$

106,574



$

100,380



$

104,587



$

100,695



$

87,579



$

81,889



16.98



$

324,749



$

270,163



20.20


Interest expense


18,356



14,185



11,140



11,325



10,678



7,976



7,874



71.90



43,681



26,528



64.66



Net interest income


99,439



92,389



89,240



93,262



90,017



79,603



74,015



10.47



281,068



243,635



15.36


Provision for loan losses


2,250



1,810



1,750



2,150



2,150



1,750



1,500



4.65



5,810



5,400



7.59



Net interest income after provision


97,189



90,579



87,490



91,112



87,867



77,853



72,515



10.61



275,258



238,235



15.54


Service charges on deposit accounts


8,847



8,271



8,473



8,659



8,676



7,958



7,931



1.97



25,591



24,565



4.18


Fees and commissions on loans and deposits


5,944



5,917



5,685



5,647



5,618



5,470



5,199



5.80



17,546



16,287



7.73


Insurance commissions and fees


2,461



2,110



2,005



1,955



2,365



2,181



1,860



4.06



6,576



6,406



2.65


Wealth management revenue


3,386



3,446



3,262



3,000



2,963



3,037



2,884



14.28



10,094



8,884



13.62


Securities gains (losses)


(16)







91



57







(128.07)



(16)



57



(128.07)


Mortgage banking income


14,350



12,839



10,960



9,871



10,616



12,424



10,504



35.17



38,149



33,544



13.73


Other


3,081



2,998



3,568



3,218



3,118



3,195



3,643



(1.19)



9,647



9,956



(3.10)



Total noninterest income


38,053



35,581



33,953



32,441



33,413



34,265



32,021



13.89



107,587



99,699



7.91


Salaries and employee benefits


55,187



52,010



48,784



48,787



48,530



45,014



42,209



13.72



155,981



135,753



14.90


Data processing


4,614



4,600



4,244



4,226



4,179



3,835



4,234



10.41



13,458



12,248



9.88


Occupancy and equipment


10,668



9,805



9,822



10,153



9,470



8,814



9,319



12.65



30,295



27,603



9.75


Other real estate


278



232



657



554



603



781



532



(53.90)



1,167



1,916



(39.09)


Amortization of intangibles


1,765



1,594



1,651



1,708



1,766



1,493



1,563



(0.06)



5,010



4,822



3.90


Merger and conversion related expenses


11,221



500



900



723



6,266



3,044



345



79.08



12,621



9,655



30.72


Debt extinguishment penalty














205







205



(100.00)


Other


11,013



10,285



11,886



10,657



9,846



11,860



10,902



11.85



33,184



32,608



1.77



Total noninterest expense


94,746



79,026



77,944



76,808



80,660



74,841



69,309



17.46



251,716



224,810



11.97


Income before income taxes


40,496



47,134



43,499



46,745



40,620



37,277



35,227



(0.31)



131,129



113,124



15.92


Income taxes


8,532



10,424



9,673



30,234



14,199



11,993



11,255



(39.91)



28,629



37,447



(23.55)



Net income


$

31,964



$

36,710



$

33,826



$

16,511



$

26,421



$

25,284



$

23,972



20.98



$

102,500



$

75,677



35.44


Basic earnings per share


$

0.61



$

0.74



$

0.69



$

0.33



$

0.54



$

0.57



$

0.54



12.96



$

2.03



$

1.64



23.78


Diluted earnings per share


0.61



0.74



0.68



0.33



0.53



0.57



0.54



15.09



2.03



1.64



23.78


Average basic shares outstanding


52,472,971



49,413,754



49,356,417



49,320,377



49,316,572



44,415,423



44,364,337



6.40



50,425,797



46,050,250



9.50


Average diluted shares outstanding


52,609,902



49,549,761



49,502,950



49,456,289



49,435,225



44,523,541



44,480,499



6.42



50,553,191



46,167,764



9.50


Common shares outstanding


58,743,814



49,424,339



49,392,978



49,321,231



49,320,225



44,430,335



44,394,707



19.11



58,743,814



49,320,225



19.11


Cash dividend per common share


$

0.20



$

0.20



$

0.19



$

0.19



$

0.18



$

0.18



$

0.18



11.11



$

0.59



$

0.54



9.26


Performance ratios























Return on avg shareholders' equity


7.40

%


9.55

%


9.00

%


4.31

%


7.01

%


8.06

%


7.80

%




8.60

%


7.58

%



Return on avg tangible s/h's equity (1)


13.65

%


16.75

%


16.02

%


7.94

%


12.74

%


13.76

%


13.48

%




15.42

%


13.3

%



Return on avg assets


1.12

%


1.42

%


1.36

%


0.64

%


1.02

%


1.16

%


1.11

%




1.30

%


1.09

%



Return on avg tangible assets (2)


1.26

%


1.57

%


1.51

%


0.73

%


1.13

%


1.28

%


1.23

%




1.44

%


1.21

%



Net interest margin (FTE)


4.07

%


4.15

%


4.20

%


4.25

%


4.08

%


4.27

%


4.01

%




4.14

%


4.12

%



Yield on earning assets (FTE)


4.81

%


4.78

%


4.72

%


4.75

%


4.55

%


4.68

%


4.43

%




4.77

%


4.56

%



Cost of funding


0.77

%


0.65

%


0.53

%


0.52

%


0.49

%


0.43

%


0.43

%




0.66

%


0.45

%



Average earning assets to average assets


87.29

%


87.67

%


87.12

%


86.92

%


87.03

%


87.81

%


87.55

%




87.36

%


87.44

%



Average loans to average deposits


91.74

%


91.84

%


94.04

%


93.51

%


90.96

%


88.03

%


86.81

%




92.50

%


88.72

%



Noninterest income (less securities gains/
























losses) to average assets


1.34

%


1.38

%


1.37

%


1.25

%


1.29

%


1.58

%


1.48

%




1.36

%


1.44

%



Noninterest expense (less debt prepayment penalties/
























penalties/merger-related expenses) to
























average assets


2.94

%


3.05

%


3.11

%


2.94

%


2.87

%


3.30

%


3.18

%




3.03

%


3.10

%



Net overhead ratio


1.60

%


1.67

%


1.74

%


1.69

%


1.58

%


1.72

%


1.70

%




1.67

%


1.66

%



Efficiency ratio (FTE) (4)


58.84

%


59.46

%


60.43

%


57.75

%


57.97

%


60.75

%


62.26

%




59.55

%


60.22

%



 

 

 

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





















Q3 2018 -


For The Nine Months Ending





2018


2017


Q3 2017


September 30,






Third


Second


First


Fourth


Third


Second


First


Percent






Percent



Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Variance


2018


2017


Variance

Average Balances























Total assets


$

11,276,587



$

10,341,863



$

10,055,755



$

10,254,774



$

10,277,476



$

8,720,660



$

8,759,448



9.72



$

10,562,540



$

9,258,088



14.09


Earning assets


9,843,870



9,067,016



8,760,679



8,913,675



8,944,067



7,657,849



7,668,582



10.06



9,227,822



8,094,838



14.00


Securities


1,129,010



1,039,947



833,076



1,043,075



1,147,157



1,069,244



1,043,697



(1.58)



1,001,762



1,087,078



(7.85)


Loans held for sale


297,692



209,652



152,299



188,795



226,512



168,650



112,105



31.42



220,413



169,508



30.03


Loans, net of unearned


8,228,053



7,704,221



7,646,991



7,535,199



7,375,410



6,293,497



6,198,705



11.56



7,861,883



6,626,848



18.64


Intangibles


743,567



633,155



634,898



636,533



636,977



492,349



493,816



16.73



670,938



541,571



23.89


Noninterest-bearing deposits


$

2,052,226



$

1,867,925



$

1,817,848



$

1,877,789



$

1,849,396



$

1,608,467



$

1,558,809



10.97



$

1,913,525



$

1,673,289



14.36


Interest-bearing deposits


6,916,699



6,521,123



6,314,114



6,180,075



6,259,249



5,540,698



5,581,853



10.50



6,586,186



5,796,415



13.63


Total deposits


8,968,925



8,389,048



8,131,962



8,057,864



8,108,645



7,149,165



7,140,662



10.61



8,499,711



7,469,704



13.79


Borrowed funds


499,054



329,287



314,228



579,920



575,816



233,542



282,008



(13.33)



381,533



364,865



4.57


Shareholders' equity


1,712,757



1,542,071



1,523,873



1,518,131



1,495,591



1,258,935



1,246,903



14.52



1,593,592



1,334,721



19.40
































































Q3 2018 -


As of


2018


2017


Q4 2017


September 30,



Third


Second


First


Fourth


Third


Second


First


Percent






Percent



Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Variance


2018


2017


Variance

Balances at period end























Total assets


$

12,746,939



$

10,544,475



$

10,238,313



$

9,829,981



$

10,323,687



$

8,872,272



$

8,764,711



29.67



$

12,746,939



$

10,323,687



23.47


Earning assets


10,962,958



9,239,200



8,938,117



8,493,741



8,943,570



7,763,775



7,690,045



29.07



10,962,958



8,943,570



22.58


Securities


1,177,606



1,088,779



948,365



671,488



1,150,459



1,076,625



1,044,862



75.37



1,177,606



1,150,459



2.36


Loans held for sale


463,287



245,046



204,472



108,316



207,288



232,398



158,619



327.72



463,287



207,288



123.50


Non purchased loans


6,210,238



6,057,766



5,830,122



5,588,556



5,293,467



5,058,898



4,834,085



11.12



6,210,238



5,293,467



17.32


Purchased loans


2,912,669



1,709,891



1,867,948



2,031,766



2,155,141



1,312,109



1,401,720



43.36



2,912,669



2,155,141



35.15



Total loans


9,122,907



7,767,657



7,698,070



7,620,322



7,448,608



6,371,007



6,235,805



19.72



9,122,907



7,448,608



22.48


Intangibles


974,115



632,311



633,905



635,556



637,264



491,552



493,045



53.27



974,115



637,264



52.86


Noninterest-bearing deposits


$

2,359,859



$

1,888,561



$

1,861,136



$

1,840,424



$

1,835,300



$

1,642,863



$

1,579,581



28.22



$

2,359,859



$

1,835,300



28.58


Interest-bearing deposits


7,812,089



6,492,159



6,496,633



6,080,651



6,283,218



5,559,162



5,651,269



28.47



7,812,089



6,283,218



24.33



Total deposits


10,171,948



8,380,720



8,357,769



7,921,075



8,118,518



7,202,025



7,230,850



28.42



10,171,948



8,118,518



25.29


Borrowed funds


439,516



520,747



265,191



297,360



591,933



312,077



202,006



47.81



439,516



591,933



(25.75)


Shareholders' equity


2,010,711



1,558,668



1,532,765



1,514,983



1,511,826



1,271,786



1,251,065



32.72



2,010,711



1,511,826



33.00


Market value per common share


$

41.21



$

45.52



$

42.56



$

40.89



$

42.90



$

43.74



$

39.69



0.78



$

41.21



$

42.9



(3.94)


Book value per common share


34.23



31.54



31.03



30.72



30.65



28.62



28.18



11.43



34.23



30.65



11.68


Tangible book value per common share


17.65



18.74



18.2



17.83



17.73



17.56



17.07



(1.01)



17.65



17.73



(0.45)


Shareholders' equity to assets (actual)


15.77

%


14.78

%


14.97

%


15.41

%


14.64

%


14.33

%


14.27

%




15.77

%


14.64

%



Tangible capital ratio (3)


8.80

%


9.35

%


9.36

%


9.56

%


9.03

%


9.31

%


9.16

%




8.80

%


9.03

%



Leverage ratio


9.85

%


10.63

%


10.61

%


10.18

%


10.05

%


10.68

%


10.39

%




9.85

%


10.05

%



Common equity tier 1 capital ratio


10.80

%


11.71

%


11.38

%


11.34

%


11.21

%


11.65

%


11.69

%




10.80

%


11.21

%



Tier 1 risk-based capital ratio


11.84

%


12.73

%


12.41

%


12.39

%


12.26

%


12.86

%


12.93

%




11.84

%


12.26

%



Total risk-based capital ratio


13.85

%


14.75

%


14.44

%


14.46

%


14.30

%


15.00

%


15.11

%




13.85

%


14.30

%




 

 

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





















Q3 2018 -


As of





2018


2017


Q4 2017


September 30,






Third


Second


First


Fourth


Third


Second


First


Percent






Percent



Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Variance


2018


2017


Variance

Non purchased loans























Commercial, financial, agricultural


$

817,799



$

790,363



$

803,146



$

763,823



$

707,835



$

657,713



$

626,237



7.07



$

817,799



$

707,835



15.54


Lease Financing


54,272



52,423



52,536



54,013



51,902



49,066



47,816



0.48



54,272



51,902



4.57


Real estate- construction


624,892



642,380



582,430



547,658



477,638



424,861



378,061



14.10



624,892



477,638



30.83


Real estate - 1-4 family mortgages


2,000,770



1,912,450



1,785,271



1,729,534



1,644,060



1,551,934



1,485,663



15.68



2,000,770



1,644,060



21.70


Real estate - commercial mortgages


2,609,510



2,554,955



2,503,680



2,390,076



2,311,340



2,281,220



2,203,639



9.18



2,609,510



2,311,340



12.90


Installment loans to individuals


102,995



105,195



103,059



103,452



100,692



94,104



92,669



(0.44)



102,995



100,692



2.29


Loans, net of unearned


$

6,210,238



$

6,057,766



$

5,830,122



$

5,588,556



$

5,293,467



$

5,058,898



$

4,834,085



11.12



$

6,210,238



$

5,293,467



17.32


Purchased loans























Commercial, financial, agricultural


$

495,545



$

197,455



$

243,672



$

275,570



$

301,100



$

102,869



$

115,229



79.83



$

495,545



$

301,100



64.58


Lease Financing


—...