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Renasant Corporation Announces Earnings For The Third Quarter Of 2019 And New $50 Million Stock Repurchase Program

TUPELO, Miss., Oct. 21, 2019 /PRNewswire/ -- Renasant Corporation (RNST) (the "Company") today announced earnings results for the third quarter of 2019. Net income for the third quarter of 2019 was $37.4 million, as compared to $32.0 million for the third quarter of 2018. Basic and diluted earnings per share ("EPS") were $0.65 and $0.64, respectively, for the third quarter of 2019, as compared to basic and diluted EPS of $0.61 for the third quarter of 2018.

Net income for the nine months ending September 30, 2019, was $129.2 million, as compared to $102.5 million for the same period in 2018. Basic and diluted EPS were $2.21 for the first nine months of 2019, as compared to basic and diluted EPS of $2.03 for the same period in 2018.

"We closed the quarter with solid results and maintained strong performance ratios despite feeling the impact from Durbin for the first time," said Renasant Chairman, E. Robinson McGraw. "We completed our previously announced $50 million share repurchase program in early October and our Board approved another $50 million share repurchase program. Additionally during the third quarter, we redeemed the subordinated notes we assumed as part of the Brand acquisition. The repurchase programs support our strategy of returning capital to our shareholders while also maintaining a strong capital position."

The Company continues to capitalize on market disruption across its footprint by hiring new production team members. The Company's net income for the third quarter and first nine months of 2019 includes approximately $2.6 million and $3.7 million, respectively, in after-tax expense related to team members that have joined the Company in the first nine months of 2019.  The expense related to these strategic hires decreased diluted EPS by $0.05 and $0.07, respectively, for the quarter and the nine months ended September 30, 2019.

"The third quarter results were highlighted by strong loan growth and a continued focus on growing non-interest bearing deposits," commented C. Mitchell Waycaster, Renasant President and Chief Executive Officer. "Our team did a tremendous job of executing our growth strategy during the quarter, even as accelerated payoffs remain at record levels for the Company. The legacy production team had a very strong quarter, and we are on track with the plan previously laid out for our new production team members."

Impact of Certain Expenses and Charges

From time to time, the Company incurs expenses and charges in connection with certain transactions with respect to which management is unable to accurately predict 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, 2019


Three months ended
September 30, 2018


Pre-tax

After-tax

Impact to
Diluted EPS


Pre-tax

After-tax

Impact to
Diluted EPS

Earnings, as reported

$

48,578


$

37,446


$

0.64



$

40,496


$

31,964


$

0.61


Merger and conversion expenses

24


19




11,221


8,857


0.17


Debt prepayment penalty

54


41







MSR valuation adjustment

3,132


2,414


0.04






Earnings, with exclusions (Non-GAAP)

$

51,788


$

39,920


$

0.68



$

51,717


$

40,821


$

0.78


 


Nine months ended

September 30, 2019


Nine months ended

September 30, 2018


Pre-tax

After-tax

Impact to
Diluted EPS


Pre-tax

After-tax

Impact to
Diluted EPS

Earnings, as reported

$

167,848


$

129,181


$

2.21



$

131,129


$

102,500


$

2.03


Merger and conversion expenses

203


157




12,621


9,866


0.20


Debt prepayment penalty

54


41







MSR valuation adjustment

3,132


2,410


0.04






Earnings, with exclusions (Non-GAAP)

$

171,237


$

131,789


$

2.25



$

143,750


$

112,366


$

2.23


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. The information below under the heading "Non-GAAP Financial Measures" explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.

Profitability Metrics

The following table presents the Company's profitability metrics, including and excluding the impact of after-tax merger and conversion expenses, debt prepayment penalties and mortgage servicing rights (MSR) valuation adjustment, as applicable, for the dates presented:


As Reported

With Exclusions

(Non-GAAP)


Three Months Ended

Three Months Ended


September 30, 2019

June 30, 2019

September 30, 2018

September 30, 2019

June 30, 2019

September 30, 2018

Return on average assets

1.16

%

1.47

%

1.12

%

1.23

%

1.47

%

1.44

%

Return on average tangible assets (Non-GAAP)

1.30

%

1.64

%

1.26

%

1.39

%

1.64

%

1.59

%

Return on average equity

6.97

%

8.90

%

7.40

%

7.43

%

8.92

%

9.46

%

Return on average tangible equity (Non-GAAP)

13.38

%

17.15

%

13.65

%

14.23

%

17.20

%

17.28

%

 


As Reported

With Exclusions

(Non-GAAP)


Nine Months Ended

Nine Months Ended


September 30, 2019


September 30, 2018

September 30, 2019


September 30, 2018

Return on average assets

1.35

%


1.30

%

1.38

%


1.42

%

Return on average tangible assets (Non-GAAP)

1.52

%


1.44

%

1.55

%


1.57

%

Return on average equity

8.22

%


8.60

%

8.39

%


9.43

%

Return on average tangible equity (Non-GAAP)

15.93

%


15.42

%

16.24

%


16.85

%

Financial Condition

Total assets were $13.04 billion at September 30, 2019, as compared to $12.93 billion at December 31, 2018. The Company's financial condition, as well as its results of operations as of and for the three and nine months ended September 30, 2019, include the impact of the Company's acquisition of Brand Group Holdings, Inc., which was completed on September 1, 2018.

Total loans held for investment were $9.31 billion at September 30, 2019 as compared to $9.08 billion at December 31, 2018. Loans not purchased increased $642.1 million to $7.03 billion at September 30, 2019 as compared to $6.39 billion at December 31, 2018. During the third quarter, the Company reclassified a group of non-mortgage consumer loans from the held for sale category to  the held for investment category; $123.9 million of these loans are included in the September 30, 2019 held for investment balance. Excluding the reclassification, the Company had linked-quarter annualized total of 5.93% and  linked-quarter annualized non-purchased loan growth of 17.43%.

Total deposits increased to $10.29 billion at September 30, 2019, from $10.13 billion at December 31, 2018. The Company continued its focus on growing non-interest bearing deposits during the third quarter, resulting in an increase in non-interest bearing deposits of $198.1 million on a linked quarter basis. Since the beginning since 2019, the Company's non-interest baring deposits have grown $288.4 million. Non-interest bearing deposits were $2.61 billion, or 25.35% of total deposits, at September 30, 2019 as compared to $2.32 billion, or 22.89% of total deposits, at December 31, 2018.

Results of Operations

Net interest income was $108.8 million for the third quarter of 2019, as compared to $112.8 million for the second quarter of 2019 and $99.4 million for the third quarter of 2018. The following table presents reported taxable equivalent net interest margin and yield on loans, including loans held for sale, for the periods presented (in thousands).


Three Months Ended


September 30,

June 30,

September 30,


2019

2019

2018

Taxable equivalent net interest income

$

110,276


$

114,223


$

100,880






Average earning assets

$

10,993,645


$

10,942,492


$

9,843,870






Net interest margin

3.98

%

4.19

%

4.07

%





Taxable equivalent interest income on loans

$

125,391


$

127,896


$

109,385






Average loans, including loans held for sale

$

9,494,689


$

9,396,891


$

8,525,745






Loan yield

5.24

%

5.46

%

5.09

%

The impact from interest income collected on problem loans and purchase accounting adjustments on loans to total interest income on loans, including loans held for sale, 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,


2019

2019

2018

Net interest income collected on problem loans

$

905


$

2,173


$

714


Accretable yield recognized on purchased loans(1)

5,510


7,513


5,381


Total impact to interest income

$

6,415


$

9,686


$

6,095






Impact to total loan yield

0.27

%

0.41

%

0.28

%





Impact to net interest margin

0.23

%

0.36

%

0.25

%



(1)

Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $2,564, $4,197 and $2,690 for the three months ended September 30, 2019, June 30, 2019, and September 30, 2018, respectively. This additional interest income increased total loan yield by 11 basis points, 18 basis points and 13 basis points for the same periods, respectively, while increasing net interest margin by 9 basis points, 15 basis points and 11 basis points for the same periods, respectively.

Net interest income was $334.8 million for the first nine months of 2019, as compared to $281.1 million for the same period in 2018. The following table presents reported taxable equivalent net interest margin and yield on loans, including loans held for sale, for the periods presented (in thousands).


Nine Months Ended


September 30,

September 30,


2019

2018

Taxable equivalent net interest income

$

339,130


$

285,493





Average earning assets

$

10,944,142


$

9,227,822





Net interest margin

4.14

%

4.14

%




Taxable equivalent interest income on loans

$

380,492


$

303,854





Average loans, including loans held for sale

$

9,432,544


$

8,082,296





Loan yield

5.39

%

5.03

%

The impact from interest income collected on problem loans and purchase accounting adjustments on loans to total interest income on loans, including loans held for sale, 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,


2019

2018

Net interest income collected on problem loans

$

3,890


$

2,117


Accretable yield recognized on purchased loans(1)

20,566


17,218


Total impact to interest income

$

24,456


$

19,335





Impact to total loan yield

0.35

%

0.32

%




Impact to net interest margin

0.30

%

0.28

%



(1)

Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $10,594 and $9,365 for the nine months ended September 30, 2019 and 2018, respectively. This additional interest income increased total loan yield by 15 basis points for the same periods, while increasing net interest margin by 13 basis points and 14 basis points for the same periods, respectively.

For the third quarter of 2019, the cost of total deposits was 84 basis points, as compared to 83 basis points for the second quarter of 2019 and 60 basis points in the third quarter of 2018. The cost of total deposits was 82 basis points for the first nine months of 2019, as compared to 51 basis points for the same period in 2018. The table below presents, by type, our funding sources and the total cost of each funding source for the periods presented:


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,


2019


2019


2018


2019


2019


2018

Noninterest-bearing demand

23.75

%


22.82

%


21.68

%


%


%


%

Interest-bearing demand

45.02



45.12



45.01



0.90



0.89



0.62


Savings

6.19



6.14



6.31



0.22



0.20



0.15


Time deposits

22.10



22.56



21.73



1.77



1.72



1.29


Borrowed funds

2.94



3.36



5.27



5.31



4.61



3.82


Total deposits and borrowed funds

100.00

%


100.00

%


100.00

%


0.97

%


0.96

%


0.77

%

 


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,


2019


2018


2019


2018

Noninterest-bearing demand

22.96

%


21.55

%


%


%

Interest-bearing demand

45.25



45.91



0.88



0.51


Savings

6.11



6.65



0.20



0.14


Time deposits

22.43



21.60



1.70



1.15


Borrowed funds

3.25



4.29



4.84



3.91


Total deposits and borrowed funds

100.00

%


100.00

%


0.95

%


0.66

%

Noninterest income for the third quarter of 2019 was $38.0 million, as compared to $42.0 million for the second quarter of 2019 and $38.1 million for the third quarter of 2018. Effective July 1, 2019, the Company became subject to the limitations on interchange fees imposed by the Durbin Amendment under the Dodd-Frank Act, which resulted in a $3.0 million reduction in fees and commissions on loans and deposits in the third quarter of 2019. Mortgage banking income for the third quarter of 2019 was $15.7 million, compared to $16.6 million for the second quarter of 2019 and $14.4 million for the third quarter of 2018. Mortgage banking income during the third quarter of 2019 was negatively impacted by a MSR valuation adjustment of $3.1 million.

Noninterest expense was $96.5 million for the third quarter of 2019, as compared to $93.3 million for the second quarter of 2019 and $94.7 million for the third quarter of 2018. The Company experienced an increase in salaries and employee benefits during the quarter. This was primarily driven by the impact from new hires made throughout the footprint and the impact from the wholesale mortgage acquisition in the second quarter of 2019. The Company's efficiency ratio (GAAP) was 65.10% for the third quarter of 2019 and 61.25% for the first nine months of 2019, while its adjusted efficiency ratio (non-GAAP) was 62.53% and 59.47% for the same respective periods. The adjusted efficiency ratio excludes charges for merger and conversion expenses, debt extinguishment penalties, amortization of intangible assets, gains and losses on the sale of securities and the MSR valuation adjustment.

Completion of Previously Announced Stock Repurchase Program and Announcement of New $50 Million Stock Repurchase Program

The Company completed its previously announced $50.0 million stock repurchase program during the first week of October 2019.  In the third quarter of 2019, the Company repurchased $28.7 million of common stock at a weighted average price of $33.72, with the remaining $1.3 million repurchased during the first week of October. The weighted average price of all shares of common stock repurchased over the entire repurchase program was $34.45.

On October 15, 2019, the Company's Board of Directors approved a new stock repurchase program, authorizing the Company to repurchase up to $50.0 million of its outstanding common stock, either in open market purchases or privately-negotiated transactions. The new stock repurchase program will remain in effect for one year or, if earlier, the repurchase of the entire amount of common stock authorized to be repurchased by the Board of Directors.

Additionally, the Company redeemed its $30.0 million principal amount 8.50% subordinated notes during the third quarter of 2019.  These subordinated notes were assumed as part of the Brand acquisition.

At September 30, 2019, Tier 1 leverage capital ratio was 10.56%, Common Equity Tier 1 ratio was 11.36%, Tier 1 risk-based capital ratio was 12.40%, and total risk-based capital ratio was 14.07%. All regulatory ratios exceed the minimums required to be considered "well-capitalized."

Our ratio of shareholders' equity to assets was 16.26% at September 30, 2019, as compared to 15.80% at December 31, 2018. Our tangible capital ratio (non-GAAP) was 9.46% at September 30, 2019, as compared to 8.92% at December 31, 2018.

Asset Quality Metrics

Total nonperforming assets were $44.4 million at September 30, 2019, an increase of $7.4 million from December 31, 2018, and consisted of $36.2 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $8.2 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 $13.2 million and $6.2 million, respectively, at September 30, 2019, as compared to $13.1 million and $6.2 million, respectively, at December 31, 2018. 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 $23.1 million, or 0.33% of total non-purchased loans, at September 30, 2019, as compared to $12.9 million, or 0.20% of total non-purchased loans, at December 31, 2018. Early stage delinquencies, or loans 30-to-89 days past due, as a percentage of total non-purchased loans were 0.18% at September 30, 2019, as compared to 0.27% at December 31, 2018.
  • Non-purchased OREO was $2.0 million at September 30, 2019, as compared to $4.9 million at December 31, 2018. Non-purchased OREO sales totaled $3.8 million in the first nine months of 2019.
  • The allowance for loan losses was 0.55% of total loans held for investment at September 30, 2019, as compared to 0.54% at December 31, 2018. The allowance for loan losses was 0.72% of total non-purchased loans at September 30, 2019, as compared to 0.77% at December 31, 2018.

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 22, 2019.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or https://services.choruscall.com/links/rnst191022.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 10135897 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until November 5, 2019.

ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 115-year-old financial services institution. Renasant has assets of approximately $13.0 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 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"), tangible book value per share and the adjusted efficiency ratio. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets and/or certain charges (such as, when applicable, merger and conversion expenses, debt prepayment penalties and asset valuation adjustments) with respect to which the Company is unable to accurately predict 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 indicators 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.

 

RENASANT CORPORATION

























(Unaudited)

























(Dollars in thousands, except per share data)






































Q3 2019 -


For The Nine Months Ending





2019


2018



Q3 2018


September 30,






Third


Second


First


Fourth


Third


Second


First



Percent






Percent



Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter



Variance


2019


2018


Variance

Statement of earnings
























Interest income - taxable equivalent basis


$

135,927



$

139,285



$

138,578



$

138,581



$

119,236



$

107,991



$

101,947




14.00

%


$

413,790



$

329,174



25.71

%

Interest income


134,476



137,862



137,094



137,105



117,795



106,574



100,380




14.16



409,432



324,749



26.08


Interest expense


25,651



25,062



23,947



21,648



18,356



14,185



11,140




39.74



74,660



43,681



70.92



Net interest income


108,825



112,800



113,147



115,457



99,439



92,389



89,240




9.44



334,772



281,068



19.11


Provision for loan losses


1,700



900



1,500



1,000



2,250



1,810



1,750




(24.44)



4,100



5,810



(29.43)



Net interest income after provision


107,125



111,900



111,647



114,457



97,189



90,579



87,490




10.22



330,672



275,258



20.13


Service charges on deposit accounts


8,992



8,605



9,102



9,069



8,847



8,271



8,473




1.64



26,699



25,591



4.33


Fees and commissions on loans and deposits


3,090



7,047



6,471



6,322



5,944



5,917



5,685




(48.01)



16,608



17,546



(5.35)


Insurance commissions and fees


2,508



2,190



2,116



2,014



2,461



2,110



2,005




1.91



6,814



6,576



3.62


Wealth management revenue


3,588



3,601



3,324



3,446



3,386



3,446



3,262




5.97



10,513



10,094



4.15


Securities gains (losses)


343



(8)



13





(16)








100.00



348



(16)



100.00


Mortgage banking income


15,710



16,620



10,401



11,993



14,350



12,839



10,960




9.48



42,731



38,149



12.01


Other


3,722



3,905



4,458



3,530



3,081



2,998



3,568




20.80



12,085



9,647



25.27



Total noninterest income


37,953



41,960



35,885



36,374



38,053



35,581



33,953




(0.26)



115,798



107,587



7.63


Salaries and employee benefits


65,425



60,325



57,350



58,313



55,187



52,010



48,784




18.55



183,100



155,981



17.39


Data processing


4,980



4,698



4,906



5,169



4,614



4,600



4,244




7.93



14,584



13,458



8.37


Occupancy and equipment


12,943



11,544



11,835



11,816



10,668



9,805



9,822




21.33



36,322



30,295



19.89


Other real estate


418



252



1,004



725



278



232



657




50.36



1,674



1,167



43.44


Amortization of intangibles


1,996



2,053



2,110



2,169



1,765



1,594



1,651




13.09



6,159



5,010



22.93


Merger and conversion related expenses


24



179





1,625



11,221



500



900




(99.79)



203



12,621



(98.39)


Debt extinguishment penalty


54
















100.00



54





100.00


Other


10,660



14,239



11,627



13,496



11,013



10,285



11,886




(3.21)



36,526



33,184



10.07



Total noninterest expense


96,500



93,290



88,832



93,313



94,746



79,026



77,944




1.85



278,622



251,716



10.69


Income before income taxes


48,578



60,570



58,700



57,518



40,496



47,134



43,499




19.96



167,848



131,129



28.00


Income taxes


11,132



13,945



13,590



13,098



8,532



10,424



9,673




30.47



38,667



28,629



35.06



Net income


$

37,446



$

46,625



$

45,110



$

44,420



$

31,964



$

36,710



$

33,826




17.15



$

129,181



$

102,500



26.03


Basic earnings per share


$

0.65



$

0.80



$

0.77



$

0.76



$

0.61



$

0.74



$

0.69




6.56



$

2.21



$

2.03



8.87


Diluted earnings per share


0.64



0.80



0.77



0.76



0.61



0.74



0.68




4.92



2.21



2.03



8.87


Average basic shares outstanding


58,003,215



58,461,024



58,585,517



58,623,646



52,472,971



49,413,754



49,356,417




10.54



58,347,840



50,425,797



15.71


Average diluted shares outstanding


58,192,419



58,618,976



58,730,535



58,767,519



52,609,902



49,549,761



49,502,950




10.61



58,508,582



50,553,191



15.74


Common shares outstanding


57,455,306



58,297,670



58,633,630



58,546,480



58,743,814



49,424,339



49,392,978




(2.19)



57,455,306



58,743,814



(2.19)


Cash dividend per common share


$

0.22



$

0.22



$

0.21



$

0.21



$

0.20



$

0.20



$

0.19




10.00



$

0.65



$

0.59



10.17


Performance ratios
























Return on avg shareholders' equity


6.97

%


8.90

%


8.86

%


8.72

%


7.40

%


9.55

%


9.00

%





8.22

%


8.60

%



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


13.38

%


17.15

%


17.41

%


17.44

%


13.65

%


16.75

%


16.02

%





15.93

%


15.42

%



Return on avg assets


1.16

%


1.47

%


1.44

%


1.39

%


1.12

%


1.42

%


1.36

%





1.35

%


1.30

%



Return on avg tangible assets (non-GAAP)(2)


1.30

%


1.64

%


1.61

%


1.56

%


1.26

%


1.57

%


1.51

%





1.52

%


1.44

%



Net interest margin (FTE)


3.98

%


4.19

%


4.27

%


4.24

%


4.07

%


4.15

%


4.20

%





4.14

%


4.14

%



Yield on earning assets (FTE)


4.91

%


5.11

%


5.16

%


5.02

%


4.81

%


4.78

%


4.72

%





5.06

%


4.77

%



Cost of funding


0.97

%


0.96

%


0.92

%


0.81

%


0.77

%


0.65

%


0.53

%





0.95

%


0.66

%



Average earning assets to average assets


85.58

%


85.72

%


85.58

%


86.15

%


87.29

%


87.67

%


87.12

%





85.63

%


87.36

%



Average loans to average deposits


89.13

%


89.13

%


89.33

%


89.77

%


91.74

%


91.84

%


94.04

%





89.19

%


92.50

%



Noninterest income (less securities gains/

























losses) to average assets


1.16

%


1.32

%


1.14

%


1.14

%


1.34

%


1.38

%


1.37

%





1.21

%


1.36

%



Noninterest expense (less debt prepayment penalties/

























penalties/merger-related expenses) to

























average assets


2.98

%


2.93

%


2.83

%


2.86

%


2.94

%


3.05

%


3.11

%





2.91

%


3.03

%



Net overhead ratio


1.82

%


1.61

%


1.69

%


1.72

%


1.60

%


1.67

%


1.74

%





1.70

%


1.67

%



Efficiency ratio (FTE)


65.10

%


59.73

%


59.02

%


60.87

%


68.20

%


61.08

%


62.48

%





61.25

%


64.04

%



Adjusted efficiency ratio (FTE) (non-GAAP) (4)


62.53

%


58.30

%


57.62

%


58.39

%


58.84

%


59.46

%


60.43

%





59.47

%


59.55

%




 

 

RENASANT CORPORATION























(Unaudited)























(Dollars in thousands, except per share data)


































Q3 2019 -


As of





2019


2018



Q3 2018


September 30,






Third


Second


First


Fourth


Third


Second


First



Percent






Percent



Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter



Variance


2019


2018


Variance

Average Balances
























Total assets


$

12,846,131



$

12,764,669



$

12,730,939



$

12,713,000



$

11,276,587



$

10,341,863



$

10,055,755




13.92

%


$

12,781,001



$

10,562,540



21.00

%

Earning assets


10,993,645



10,942,492



10,895,205



10,952,023



9,843,870



9,067,016



8,760,679




11.68



10,944,142



9,227,822



18.60


Securities


1,227,678



1,262,271



1,253,224



1,240,283



1,129,010



1,039,947



833,076




8.74



1,247,631



1,001,762



24.54


Loans held for sale


385,437



353,103



345,264



418,213



297,692



209,652



152,299




29.48



361,415



220,413



63.97


Loans, net of unearned


9,109,252



9,043,788



9,059,802



9,130,273



8,228,053



7,704,221



7,646,991




10.71



9,071,129



7,861,883



15.38


Intangibles


975,306



974,628



976,820



972,736



743,567



633,155



634,898




31.17



975,579



670,938



45.41


Noninterest-bearing deposits


2,500,810



2,395,899



2,342,406



2,402,422



2,052,226



1,867,925



1,817,848




21.86



2,413,619



1,913,525



26.13


Interest-bearing deposits


7,719,510



7,750,986



7,799,892



7,768,724



6,916,699



6,521,123



6,314,114




11.61



7,756,501



6,586,186



17.77


Total deposits


10,220,320



10,146,885



10,142,298



10,171,146



8,968,925



8,389,048



8,131,962




13.95



10,170,120



8,499,711



19.65


Borrowed funds


308,931



354,234



363,140



407,496



499,054



329,287



314,228




(38.10)



341,903



381,533



(10.39)


Shareholders' equity


2,131,537



2,102,093



2,065,370



2,021,075



1,712,757



1,542,071



1,523,873




24.45



2,099,909



1,593,592



31.77
































































Q3 2019 -


As of


2019


2018



Q4 2018


September 30,



Third


Second


First


Fourth


Third


Second


First



Percent






Percent



Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter



Variance


2019


2018


Variance

Balances at period end
























Total assets


$

13,039,674



$

12,892,653



$

12,862,395



$

12,934,878



$

12,746,939



$

10,544,475



$

10,238,313




0.81

%


$

13,039,674



$

12,746,939



2.30

%

Earning assets


11,145,052



11,064,957



11,015,535



11,115,929



10,962,958



9,239,200



8,938,117




0.26



11,145,052



10,962,958



1.66


Securities


1,238,577



1,268,280



1,255,353



1,250,777



1,177,606



1,088,779



948,365




(0.98)



1,238,577



1,177,606



5.18


Loans held for sale


392,448



461,681



318,563



411,427



463,287



245,046



204,472




(4.61)



392,448



463,287



(15.29)


Non purchased loans


7,031,818



6,704,288



6,565,599



6,389,712



6,210,238



6,057,766



5,830,122




10.05



7,031,818



6,210,238



13.23


Purchased loans


2,281,966



2,350,366



2,522,694



2,693,417



2,912,669



1,709,891



1,867,948




(15.28)



2,281,966



2,912,669



(21.65)



Total loans


9,313,784



9,054,654



9,088,293



9,083,129



9,122,907



7,767,657



7,698,070




2.54



9,313,784



9,122,907



2.09


Intangibles


978,390



973,673



975,726



977,793



974,115



632,311



633,905




0.06



978,390



974,115



0.44


Noninterest-bearing deposits


2,607,056



2,408,984



2,366,223



2,318,706



2,359,859



1,888,561



1,861,136




12.44



2,607,056



2,359,859



10.48


Interest-bearing deposits


7,678,980



7,781,077



7,902,689



7,809,851



7,812,089



6,492,159



6,496,633




(1.68)



7,678,980



7,812,089



(1.70)



Total deposits


10,286,036



10,190,061



10,268,912



10,128,557



10,171,948



8,380,720



8,357,769




1.55



10,286,036



10,171,948



1.12


Borrowed funds


433,705



401,934



350,859



651,324



439,516



520,747



265,191




(33.41)



433,705



439,516



(1.32)


Shareholders' equity


2,119,659



2,119,696



2,088,877



2,043,913



2,010,711



1,558,668



1,532,765




3.71



2,119,659



2,010,711



5.42


Market value per common share


35.01



35.94



33.85



30.18



41.21



45.52



42.56




16.00



35.01



41.21



(15.04)


Book value per common share


36.89



36.36



35.63



34.91



34.23



31.54



31.03




5.67



36.89



34.23



7.77


Tangible book value per common share


19.86



19.66



18.98



18.21



17.65



18.74



18.20




9.06



19.86



17.65



12.52


Shareholders' equity to assets (actual)


16.26

%


16.44

%


16.24

%


15.80

%


15.77

%


14.78

%


14.97

%





16.26

%


15.77

%



Tangible capital ratio (non-GAAP)(3)


9.46

%


9.62

%


9.36

%


8.92

%


8.80

%


9.35

%


9.36

%





9.46

%


8.80

%



Leverage ratio


10.56

%


10.65

%


10.44

%


10.11

%


9.85

%


10.63

%


10.61

%





10.56

%


9.85

%



Common equity tier 1 capital ratio


11.36

%


11.64

%


11.49

%


11.05

%


10.80

%


11.71

%


11.38

%





11.36

%


10.80

%



Tier 1 risk-based capital ratio


12.40

%


12.69

%


12.55

%


12.10

%


11.84

%


12.73

%


12.41

%





12.40

%


11.84

%



Total risk-based capital ratio


14.07

%


14.62

%


14.57

%


14.12

%


13.85

%


14.75

%


14.44

%





14.07

%


13.85

%




 

 

...

RENASANT CORPORATION























(Unaudited)























(Dollars in thousands, except per share data)


































Q3 2019 -


As of





2019


2018



Q4 2018


September 30,






Third


Second


First


Fourth


Third


Second


First



Percent






Percent



Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter



Variance


2019


2018


Variance

Non purchased loans
























Commercial, financial, agricultural


$

988,867



$

930,598



$

921,081


$

875,649



$

817,799



$

790,363



$

803,146




12.93

%


$

988,867



$

817,799



20.92

%

Lease financing


69,953



59,158



58,651


61,865



54,272



52,423



52,536




13.07



69,953



54,272



28.89


Real estate- construction


764,589



716,129



651,119


635,519



624,892



642,380



582,430




20.31



764,589



624,892



22.36


Real estate - 1-4 family mortgages


2,235,908



2,160,617



2,114,908


2,087,890



2,000,770



1,912,450



1,785,271




7.09



2,235,908



2,000,770



11.75


Real estate - commercial mortgages


2,809,470



2,741,402



2,726,186


2,628,365



2,609,510



2,554,955



2,503,680




6.89



2,809,470



2,609,510



7.66


Installment loans to individuals


163,031



96,384



93,654


100,424



102,995



105,195



103,059




62.34



163,031



102,995



58.29


    Loans, net of unearned


$

7,031,818



$

6,704,288



$

6,565,599


$

6,389,712



$

6,210,238



$

6,057,766



$

5,830,122




10.05



$

7,031,818



$

6,210,238



13.23


Purchased loans