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Renasant Corporation Announces Record Earnings For 2018


TUPELO, Miss., Jan. 22, 2019 /PRNewswire/ -- Renasant Corporation (RNST) (the "Company") today announced earnings results for the fourth quarter of 2018. Net income for the fourth quarter of 2018 was $44.4 million, as compared to $16.5 million for the fourth quarter of 2017. Basic and diluted earnings per share ("EPS") were $0.76 for the fourth quarter of 2018, as compared to basic and diluted EPS of $0.33 for the fourth quarter of 2017.

Net income for the year ending December 31, 2018, was $146.9 million, as compared to $92.2 million for 2017. Basic and diluted EPS were $2.80 and $2.79, respectively, for 2018, as compared to basic and diluted EPS of $1.97 and $1.96, respectively, for 2017.

"During a quarter highlighted by increased volatility in financial markets and uncertainty about the economic outlook, Renasant once again closed the year with record results.  Our superior profitability metrics continue to increase and are a direct result of our continued efforts to maintain a stable core margin while focusing on cost containment," commented Renasant Executive Chairman E. Robinson McGraw. "While we are not immune to the increased level of competition in our markets, we remain disciplined in our pricing and prudent in our underwriting standards, and our credit quality metrics all remain at or near historic lows."

"Although the economic uncertainty that arose at the close of 2018 has not resolved as we start the new year, we remain committed to delivering strong shareholder value through prudent capital management and a continued emphasis on profitability and growth of our core operations," added C. Mitchell Waycaster, Renasant President and Chief Executive Officer. "With the integration of Brand's operations and team members now complete, coupled with strategic hires throughout our footprint, we begin 2019 with a renewed focus on understanding and meeting our customers' needs and continuing to deliver a first class line up of products and services which earned us the designation of "Best Bank in the South" by Time Magazine's Money.com."

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 year ended December 31, 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


71,246


Loans including loans held for sale


1,589,254


Premises and equipment


20,070


Intangible assets


349,416


Other assets


112,050


Total assets


$

2,335,472





Deposits


$

1,714,177


Borrowings


90,912


Other liabilities


55,930




$

1,861,019


As part of the merger agreement, Brand agreed to divest the operations of its subsidiary Brand Mortgage Group, LLC ("BMG"), which transaction was completed as of November 1, 2018.  As a result, the results of operations of BMG, which are not significant to the Company's operations, are included in the Company's results for 2018 from the acquisition date through the completion date of the divestiture.

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 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

December 31, 2018


Three months ended

December 31, 2017


Pre-tax

After-tax

Impact to
Diluted
EPS


Pre-tax

After-tax

Impact to
Diluted
EPS

Merger and conversion expenses

$

1,625


$

1,255


$

0.02



$

723


$

479


$

0.01


Write-down of net deferred tax assets






14,486


0.30


 


Year ended December 31, 2018


Year ended December 31, 2017


Pre-tax

After-tax

Impact to

 Diluted
EPS


Pre-tax

After-tax

Impact to
Diluted
EPS

Merger and conversion expenses

$

14,246


$

11,095


$

0.21



$

10,378


$

6,925


$

0.15


Write-down of net deferred tax assets






14,486


0.31


Debt prepayment penalty





205


137



The Company's fourth quarter 2017 earnings include an after-tax charge of $14.5 million resulting from the revaluation of the Company's deferred tax assets in response to the corporate tax rate reduction implemented by the Tax Cuts and Jobs Act, which was enacted in December 2017.  The after-tax charge reduced diluted EPS by $0.30 and $0.31 for the quarter and year ended December 31, 2017, respectively.  No such charge is included in the Company's 2018 results.

The Company's fourth quarter and 2018 earnings included pre-tax expenses of $1.6 million and $14.2 million, respectively, related to the merger and conversion of Brand.  These expenses reduced diluted EPS by $0.02 and $0.21 for the fourth quarter and year, respectively.  Similarly, the Company's fourth quarter and 2017 earnings included pre-tax expenses of $723 thousand and $10.4 million related primarily to the acquisition of Metropolitan BancGroup, Inc., which was completed in July 2017.  These charges reduced diluted EPS by $0.01 and $0.15 for the fourth quarter and year, respectively.

Profitability Metrics

The following table presents the Company's profitability metrics for the three and twelve months ending December 31, 2018, including and excluding the impact of after-tax merger and conversion expenses related to the Brand acquisition described above.


Three Months Ended


Year Ended


December 31, 2018


December 31, 2018


As Reported

Excluding merger
and conversion
expenses

(Non-GAAP)


As Reported

Excluding merger
and conversion
expenses
(Non-GAAP)

Return on average assets

1.39

%

1.43

%


1.32

%

1.42

%

Return on average tangible assets (Non-GAAP)

1.56

%

1.60

%


1.47

%

1.58

%

Return on average equity

8.72

%

8.97

%


8.64

%

9.29

%

Return on average tangible equity (Non-GAAP)

17.44

%

17.92

%


15.98

%

17.14

%

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 $12.9 billion at December 31, 2018, as compared to $9.8 billion at December 31, 2017.

Total loans increased to $9.1 billion at December 31, 2018, from $7.6 billion at December 31, 2017.  Loans not purchased increased to $6.4 billion at December 31, 2018, from $5.6 billion at December 31, 2017. Loan production for the fourth quarter and for 2018 was $400.3 million and $1.7 billion, respectively, as compared to $448.5 million and $1.5 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 $10.1 billion at December 31, 2018, from $7.9 billion at December 31, 2017. Non-interest bearing deposits averaged $2.0 billion, or 22.83% of average deposits, for 2018, compared to $1.7 billion, or 22.64% of average deposits, for the same period in 2017.  As of the acquisition date, Brand added $1.7 billion in deposits, which included $429.2 million in non-interest bearing deposits.

At December 31, 2018, Tier 1 leverage capital ratio was 10.11%, Common Equity Tier 1 ratio was 11.05%, Tier 1 risk-based capital ratio was 12.10%, and total risk-based capital ratio was 14.12%. All regulatory ratios exceed the minimums required to be considered "well-capitalized."

Our ratio of shareholders' equity to assets was 15.80% at December 31, 2018, as compared to 15.41% at December 31, 2017. Our tangible capital ratio (non-GAAP) was 8.92% at December 31, 2018, as compared to 9.56% at December 31, 2017.

The Company announced a $50.0 million stock repurchase program in October 2018.  During the fourth quarter of 2018, the Company repurchased $7.1 million of common stock at a weighted average price of $35.48.  The plan will remain in effect until the earlier of October 2019 or the repurchase of the entire amount of common stock authorized to be repurchased by the Board of Directors.

Results of Operations

Net interest income was $115.5 million for the fourth quarter of 2018, as compared to $99.4 million for the third quarter of 2018 and $93.3 million for the fourth quarter of 2017. The following table presents reported taxable equivalent net interest margin and yield on loans held for investment for the periods presented (in thousands).


Three Months Ended


December 31,

September 30,

December 31,


2018

2018

2017

Taxable equivalent net interest income

$

116,933


$

100,880


$

96,448






Average earning assets

$

10,952,024


$

9,843,870


$

8,913,675






Net interest margin

4.24

%

4.07

%

4.25

%





Taxable equivalent interest income on loans

$

122,703


$

105,722


$

97,307






Average loans held for investment

$

9,130,273


$

8,228,053


$

7,535,199






Loan yield

5.33

%

5.10

%

5.07

%

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


December 31,

September 30,

December 31,


2018

2018

2017

Net interest income collected on problem loans

$

744


$

714


$

4,543


Accretable yield recognized on purchased loans(1)

7,236


5,261


5,878


Total impact to interest income

$

7,980


$

5,975


$

10,421






Impact to loan yield

0.35

%

0.29

%

0.55

%





Impact to net interest margin

0.29

%

0.24

%

0.46

%



(1)  

Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $3,095, $2,570 and $2,747 for the three months ended December 31, 2018, September 30, 2018, and December 31, 2017, respectively. This additional interest income increased loan yield by 13 basis points, 12 basis points and 14 basis points for the same periods, respectively, while increasing net interest margin by 11 basis points, 10 basis points and 12 basis points for the same periods, respectively.

Net interest income was $396.5 million for 2018, as compared to $336.9 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).


Year Ended


December 31,


December 31,


2018


2017

Taxable equivalent net interest income

$

402,426



$

345,743






Average earning assets

$

9,662,416



$

8,301,230






Net interest margin

4.16

%


4.16

%





Taxable equivalent interest income on loans

$

418,842



$

340,567






Average loans held for investment

$

8,181,587



$

6,855,802






Loan yield

5.12

%


4.97

%

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).


Year Ended


December 31,


December 31,


2018


2017

Net interest income collected on problem loans

$

2,861



$

8,807


Accretable yield recognized on purchased loans(1)

24,333



23,151


Total impact to interest income

$

27,194



$

31,958






Impact to loan yield

0.33

%


0.47

%





Impact to net interest margin

0.28

%


0.38

%



(1)   

Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $12,339 and $10,932 for the year ended December 31, 2018 and 2017, respectively, which increased loan yield by 15 basis points and 16 basis points for the same periods, respectively, while increasing net interest margin by 13 basis points for each period.

For the fourth quarter of 2018, the cost of total deposits was 67 basis points, as compared to 60 basis points for the third quarter of 2018 and 36 basis points in the fourth quarter of 2017. The cost of total deposits was 56 basis points for the year ending December 31, 2018, as compared to 32 basis points for 2017.


Percentage of Total Average Deposits and

 Borrowed Funds


Cost of Funds


Three Months Ending


Three Months Ending


December 31,


September 30,


December 31,


December 31,


September 30,


December 31,


2018


2018


2017


2018


2018


2017

Noninterest-bearing demand

22.71

%


21.68

%


21.74

%


%


%


%

Interest-bearing demand

44.89



45.01



43.80



0.69



0.62



0.32


Savings

5.82



6.31



6.63



0.16



0.15



0.07


Time deposits

22.73



21.73



21.12



1.45



1.29



0.90


Borrowed funds

3.85



5.27



6.71



4.31



3.82



2.74


Total deposits and borrowed funds

100.00

%


100.00

%


100.00

%


0.81

%


0.77

%


0.52

%

 


Percentage of Total Average
Deposits and Borrowed Funds


Cost of Funds


Year Ended

 

 December 31,


Year Ended

 

 December 31,










2018


2017


2018


2017

Noninterest-bearing demand

21.88

%


21.46

%


%


%

Interest-bearing demand

45.62



44.91



0.56



0.26


Savings

6.41



7.06



0.15



0.07


Time deposits

21.92



21.35



1.24



0.85


Borrowed funds

4.17



5.22



4.01



3.16


Total deposits and borrowed funds

100.00

%


100.00

%


0.70

%


0.47

%

Noninterest income for the fourth quarter of 2018 was $36.4 million, as compared to $38.1 million for the third quarter of 2018 and $32.4 million for the fourth quarter of 2017. Noninterest income for the year ended December 31, 2018 was $144.0 million, as compared to $132.1 million for the same period in 2017. Mortgage banking income for the fourth quarter of 2018 was $12.0 million, compared to $14.4 million for the third quarter of 2018 and $9.9 million for the fourth quarter of 2017. Mortgage banking income for the year ended December 31, 2018 was $50.1 million, as compared to $43.4 million for the same period in 2017. BMG contributed $2.0 million and $3.7 million to mortgage banking income during the three and twelve months ended December 31, 2018, respectively.

Noninterest expense was $93.3 million for the fourth quarter of 2018, as compared to $94.7 million for the third quarter of 2018 and $76.8 million for the fourth quarter of 2017. Noninterest expense for the year ended December 31, 2018 was $345.0 million, as compared to $301.6 million for the same period in 2017. Noninterest expense for the three and twelve months ended December 31, 2018 includes $2.4 million and $4.4 million, respectively, 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 58.39% and 59.22% for the fourth quarter and full year of 2018, respectively, which exceeded the Company's goal of maintaining an efficiency ratio below 60%.

Asset Quality Metrics

Total nonperforming assets were $37.0 million at December 31, 2018, as compared to $39.4 million at December 31, 2017, and consisted of $26.0 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $11.0 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 $13.1 million and $6.2 million, respectively, at December 31, 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 $12.9 million, or 0.20% of total non-purchased loans, at December 31, 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 non-purchased loans were 0.27% at December 31, 2018, as compared to 0.30% at December 31, 2017.
  • Non-purchased OREO was $4.9 million at December 31, 2018, as compared to $4.4 million at December 31, 2017. Sales of non-purchased OREO totaled $1.9 million for 2018 and $3.0 million for 2017.
  • The allowance for loan losses was 0.54% of total loans at December 31, 2018 and 0.61% of total loans at December 31, 2017. The allowance for loan losses was 0.77% of non-purchased loans at December 31, 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 Wednesday, January 23, 2019.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or https://services.choruscall.com/links/rnst190123.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Fourth 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 10127759 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 6, 2019.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 114-year-old financial services institution. Renasant has assets of approximately $12.9 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") 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 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.

 

RENASANT CORPORATION















































(Unaudited)
















































(Dollars in thousands, except per share data)


































































Q4 2018 -


Twelve Months Ended





2018


2017


Q4 2017


December 31,





Fourth


Third


Second


First


Fourth


Third


Second


First


Percent






Percent


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Variance


2018


2017


Variance

Statement of earnings
























Interest income - taxable equivalent basis

$

138,581



$

119,236



$

107,991



$

101,947



$

107,773



$

102,613



$

89,429



$

83,781



28.59

%


$

467,755



$

383,596



21.94

%

Interest income

$

137,105



$

117,795



$

106,574



$

100,380



$

104,587



$

100,695



$

87,579



$

81,889



31.09



$

461,854



$

374,750



23.24


Interest expense

21,648



18,356



14,185



11,140



11,325



10,678



7,976



7,874



91.15



65,329



37,853



72.59



Net interest income

115,457



99,439



92,389



89,240



93,262



90,017



79,603



74,015



23.80



396,525



336,897



17.70


Provision for loan losses

1,000



2,250



1,810



1,750



2,150



2,150



1,750



1,500



(53.49)



6,810



7,550



(9.80)



Net interest income after provision

114,457



97,189



90,579



87,490



91,112



87,867



77,853



72,515



25.62



389,715



329,347



18.33


Service charges on deposit accounts

9,069



8,847



8,271



8,473



8,659



8,676



7,958



7,931



4.73



34,660



33,224



4.32


Fees and commissions on loans and deposits

6,322



5,944



5,917



5,685



5,647



5,618



5,470



5,199



11.95



23,868



21,934



8.82


Insurance commissions and fees

2,014



2,461



2,110



2,005



1,955



2,365



2,181



1,860



3.02



8,590



8,361



2.74


Wealth management revenue

3,446



3,386



3,446



3,262



3,000



2,963



3,037



2,884



14.87



13,540



11,884



13.93


Securities gains (losses)



(16)







91



57







(100.00)



(16)



148



(110.81)


Mortgage banking income

11,993



14,350



12,839



10,960



9,871



10,616



12,424



10,504



21.50



50,142



43,415



15.49


Other

3,530



3,081



2,998



3,568



3,218



3,118



3,195



3,643



9.70



13,177



13,174



0.02



Total noninterest income

36,374



38,053



35,581



33,953



32,441



33,413



34,265



32,021



12.12



143,961



132,140



8.95


Salaries and employee benefits

58,313



55,187



52,010



48,784



48,787



48,530



45,014



42,209



19.53



214,294



184,540



16.12


Data processing

5,169



4,614



4,600



4,244



4,226



4,179



3,835



4,234



22.31



18,627



16,474



13.07


Occupancy and equipment

11,816



10,668



9,805



9,822



10,153



9,470



8,814



9,319



16.38



42,111



37,756



11.53


Other real estate

725



278



232



657



554



603



781



532



30.87



1,892



2,470



(23.40)


Amortization of intangibles

2,169



1,765



1,594



1,651



1,708



1,766



1,493



1,563



26.99



7,179



6,530



9.94


Merger and conversion related expenses

1,625



11,221



500



900



723



6,266



3,044



345



124.76



14,246



10,378



37.27


Debt extinguishment penalty















205







205



(100.00)


Other

13,496



11,013



10,285



11,886



10,657



9,846



11,860



10,902



26.64



46,680



43,265



7.89



Total noninterest expense

93,313



94,746



79,026



77,944



76,808



80,660



74,841



69,309



21.49



345,029



301,618



14.39


Income before income taxes

57,518



40,496



47,134



43,499



46,745



40,620



37,277



35,227



23.05



188,647



159,869



18.00


Income taxes

13,098



8,532



10,424



9,673



30,234



14,199



11,993



11,255



(56.68)



41,727



67,681



(38.35)



Net income

$

44,420



$

31,964



$

36,710



$

33,826



$

16,511



$

26,421



$

25,284



$

23,972



169.03



$

146,920



$

92,188



59.37


Basic earnings per share

$

0.76



$

0.61



$

0.74



$

0.69



$

0.33



$

0.54



$

0.57



$

0.54



130.30



$

2.80



$

1.97



42.13


Diluted earnings per share

0.76



0.61



0.74



0.68



0.33



0.53



0.57



0.54



130.30



2.79



1.96



42.35


Average basic shares outstanding

58,623,646



52,472,971



49,413,754



49,356,417



49,320,377



49,316,572



44,415,423



44,364,337



18.86



52,492,104



46,874,502



11.98


Average diluted shares outstanding

58,767,519



52,609,902



49,549,761



49,502,950



49,456,289



49,435,225



44,523,541



44,480,499



18.83



52,626,850



47,001,516



11.97


Common shares outstanding

58,546,480



58,743,814



49,424,339



49,392,978



49,321,231



49,320,225



44,430,335



44,394,707



18.70



58,546,480



49,321,231



18.70


Cash dividend per common share

$

0.21



$

0.20



$

0.20



$

0.19



$

0.19



$

0.18



$

0.18



$

0.18



10.53



$

0.80



$

0.73



9.59


Performance ratios
























Return on avg shareholders' equity

8.72

%


7.40

%


9.55

%


9.00

%


4.31

%


7.01

%


8.06

%


7.80

%




8.64

%


6.68

%



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

17.44

%


13.65

%


16.75

%


16.02

%


7.94

%


12.74

%


13.76

%


13.48

%




15.98

%


11.84

%



Return on avg assets

1.39

%


1.12

%


1.42

%


1.36

%


0.64

%


1.02

%


1.16

%


1.11

%




1.32

%


0.97

%



Return on avg tangible assets (2)

1.56

%


1.26

%


1.57

%


1.51

%


0.73

%


1.13

%


1.28

%


1.23

%




1.47

%


1.08

%



Net interest margin (FTE)

4.24

%


4.07

%


4.15

%


4.20

%


4.25

%


4.08

%


4.27

%


4.01

%




4.16

%


4.16

%



Yield on earning assets (FTE)

5.02

%


4.81

%


4.78

%


4.72

%


4.75

%


4.55

%


4.68

%


4.43

%




4.84

%


4.62

%



Cost of funding

0.81

%


0.77

%


0.65

%


0.53

%


0.52

%


0.49

%


0.43

%


0.43

%




0.70

%


0.47

%



Average earning assets to average assets

86.15

%


87.29

%


87.67

%


87.12

%


86.92

%


87.03

%


87.81

%


87.55

%




87.01

%


87.30

%



Average loans to average deposits

89.77

%


91.74

%


91.84

%


94.04

%


93.51

%


90.96

%


88.03

%


86.81

%




91.71

%


90.00

%



Noninterest income (less securities gains/

























losses) to average assets

1.14

%


1.34

%


1.38

%


1.37

%


1.25

%


1.29

%


1.58

%


1.48

%




1.30

%


1.39

%



Noninterest expense (less debt prepayment penalties/

























penalties/merger-related expenses) to

























average assets

2.86

%


2.94

%


3.05

%


3.11

%


2.94

%


2.87

%


3.30

%


3.18

%




2.98

%


3.06

%



Net overhead ratio

1.72

%


1.60

%


1.67

%


1.74

%


1.69

%


1.58

%


1.72

%


1.70

%




1.68

%


1.67

%



Efficiency ratio (FTE) (4)

58.39

%


58.84

%


59.46

%


60.43

%


57.75

%


57.97

%


60.75

%


62.26

%




59.22

%


59.55

%



 

RENASANT CORPORATION
























(Unaudited)
























(Dollars in thousands, except per share data)









































Q4 2018 -


Twelve Months Ended





2018


2017


Q4 2017


December 31,





Fourth


Third


Second


First


Fourth


Third


Second


First


Percent






Percent


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Variance


2018


2017


Variance

Average Balances
























Total assets

$

12,713,000



$

11,276,587



$

10,341,863



$

10,055,755



$

10,254,774



$

10,277,476



$

8,720,660



$

8,759,448



23.97

%


$

11,104,567



$

9,509,308



16.78

%

Earning assets

10,952,023



9,843,870



9,067,016



8,760,679



8,913,675



8,944,067



7,657,849



7,668,582



22.87



9,662,416



8,301,230



16.40


Securities

1,240,283



1,129,010



1,039,947



833,076



1,043,075



1,147,157



1,069,244



1,043,697



18.91



1,061,882



1,075,987



(1.31)


Loans held for sale

418,213



297,692



209,652



152,299



188,795



226,512



168,650



112,105



121.52



270,270



174,369



55.00


Loans, net of unearned

9,130,273



8,228,053



7,704,221



7,646,991



7,535,199



7,375,410



6,293,497



6,198,705



21.17



8,181,587



6,855,802



19.34


Intangibles

972,736



743,567



633,155



634,898



636,533



636,977



492,349



493,816



52.82



747,008



565,507



32.10


Noninterest-bearing deposits

$

2,402,422



$

2,052,226



$

1,867,925



$

1,817,848



$

1,877,789



$

1,849,396



$

1,608,467



$

1,558,809



27.94



$

2,036,754



$

1,724,834



18.08


Interest-bearing deposits

7,768,724



6,916,699



6,521,123



6,314,114



6,180,075



6,259,249



5,540,698



5,581,853



25.71



6,884,250



5,893,118



16.82


Total deposits

10,171,146



8,968,925



8,389,048



8,131,962



8,057,864



8,108,645



7,149,165



7,140,662



26.23



8,921,004



7,617,952



17.11


Borrowed funds

407,496



499,054



329,287



314,228



579,920



575,816



233,542



282,008



(29.73)



388,077



419,070



(7.40)


Shareholders' equity

2,021,075



1,712,757



1,542,071



1,523,873



1,518,131



1,495,591



1,258,935



1,246,903



33.13



1,701,334



1,380,950



23.20



































































Q4 2018 -


As of


2018


2017


Q4 2017


December 31,


Fourth


Third


Second


First


Fourth


Third


Second


First


Percent






Percent


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Variance


2018


2017


Variance

Balances at period end
























Total assets

$

12,934,878



$

12,746,939



$

10,544,475



$

10,238,313



$

9,829,981



$

10,323,687



$

8,872,272



$

8,764,711



31.59

%


$

12,934,878



$

9,829,981



31.59

%

Earning assets

11,115,929



10,962,958



9,239,200



8,938,117



8,493,741



8,943,570



7,763,775



7,690,045



30.87



11,115,929



8,493,741



30.87


Securities

1,250,777



1,177,606



1,088,779



948,365



671,488



1,150,459



1,076,625



1,044,862



86.27



1,250,777



671,488



86.27


Loans held for sale

411,427



463,287



245,046



204,472



108,316



207,288



232,398



158,619



279.84



411,427



108,316



279.84


Non purchased loans

6,389,712



6,210,238



6,057,766



5,830,122



5,588,556



5,293,467



5,058,898



4,834,085



14.34



6,389,712



5,588,556



14.34


Purchased loans

2,693,417



2,912,669



1,709,891



1,867,948



2,031,766



2,155,141



1,312,109



1,401,720



32.57



2,693,417



2,031,766



32.57



Total loans

9,083,129



9,122,907



7,767,657



7,698,070



7,620,322



7,448,608



6,371,007



6,235,805



19.20



9,083,129



7,620,322



19.20


Intangibles

977,793



974,115



632,311



633,905



635,556



637,264



491,552



493,045



53.85



977,793



635,556



53.85


Noninterest-bearing deposits

$

2,318,706



$

2,359,859



$

1,888,561



$

1,861,136



$

1,840,424



$

1,835,300



$

1,642,863



$

1,579,581



25.99



$

2,318,706



$

1,840,424



25.99


Interest-bearing deposits

7,809,851



7,812,089



6,492,159



6,496,633



6,080,651



6,283,218



5,559,162



5,651,269



28.44



7,809,851



6,080,651



28.44



Total deposits

10,128,557



10,171,948



8,380,720



8,357,769



7,921,075



8,118,518



7,202,025



7,230,850



27.87



10,128,557



7,921,075



27.87


Borrowed funds

651,324



439,516



520,747



265,191



297,360



591,933



312,077



202,006



119.04



651,324



297,360



119.04


Shareholders' equity

2,043,913



2,010,711



1,558,668



1,532,765



1,514,983



1,511,826



1,271,786



1,251,065



34.91



2,043,913



1,514,983



34.91


Market value per common share

$

30.18



$

41.21



$

45.52



$

42.56



$

40.89



$

42.90



$

43.74



$

39.69



(26.19)



$

30.18



$

40.89



(26.19)


Book value per common share

34.91



34.23



31.54



31.03



30.72



30.65



28.62



28.18



13.64



34.91



30.72



13.64


Tangible book value per common share

18.21



17.65



18.74



18.20



17.83



17.73



17.56



17.07



2.13



18.21



17.83



2.13


Shareholders' equity to assets (actual)

15.80

%


15.77

%


14.78

%


14.97

%


15.41

%


14.64

%


14.33

%


14.27

%




15.80

%


15.41

%



Tangible capital ratio (3)

8.92

%


8.80

%


9.35

%


9.36

%


9.56

%


9.03

%


9.31

%


9.16

%




8.92

%


9.56

%



Leverage ratio

10.11

%


9.85

%


10.63

%


10.61

%


10.18

%


10.05

%


10.68

%


10.39

%




10.11

%


10.16

%



Common equity tier 1 capital ratio

11.05

%


10.80

%


11.71

%


11.38

%


11.34

%


11.21

%


11.65

%


11.69

%




11.05

%


11.32

%



Tier 1 risk-based capital ratio

12.10

%


11.84

%


12.73

%


12.41

%


12.39

%


12.26

%


12.86

%


12.93

%




12.10

%


12.37

%



Total risk-based capital ratio

14.12

%


13.85

%


14.75

%


14.44

%


14.46

%


14.30

%


15.00

%


15.11

%




14.12

%


14.43

%
















































 

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































































Q4 2018 -


As of





2018


2017


Q4 2017


December 31,





Fourth


Third


Second


First


Fourth


Third


Second


First


Percent






Percent


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Quarter


Variance


2018


2017


Variance

Non purchased loans
























Commercial, financial, agricultural

$

875,649



$

817,799



$

790,363



$

803,146



$

763,823



$

707,835



$

657,713



$

626,237



14.64

%


$

875,649



$

763,823



14.64

%

Lease Financing

61,865



54,272



52,423



52,536



54,013



51,902



49,066



47,816



14.54



61,865



54,013



14.54


Real estate- construction

635,519



624,892



642,380



582,430



547,658



477,638



424,861



378,061



16.04



635,519



547,658



16.04


Real estate - 1-4 family mortgages

2,087,890



2,000,770



1,912,450



1,785,271



1,729,534



1,644,060



1,551,934



1,485,663



20.72



2,087,890



1,729,534



20.72


Real estate - commercial mortgages

2,628,365



2,609,510



2,554,955



2,503,680



2,390,076



2,311,340



2,281,220



2,203,639



9.97



2,628,365



2,390,076



9.97


Installment loans to individuals

100,424



102,995



105,195



103,059



103,452



100,692



94,104



92,669



(2.93)



100,424



103,452



(2.93)


Loans, net of unearned

$

6,389,712



$

6,210,238



$

6,057,766



$

5,830,122



$

5,588,556



$

5,293,467



$

5,058,898



$

4,834,085



14.34



$

6,389,712



$

5,588,556



14.34


Purchased loans
























Commercial, financial, agricultural

$

420,263



$

495,545



$

197,455



$

243,672



$

275,570



$

301,100



$

102,869



$

115,229



52.51



$

420,263



$

275,570



52.51


Lease Financing



...