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Section 1: 8-K (8-K)

Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

April 23, 2019

Date of Report (Date of Earliest Event Reported)

RENASANT CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Mississippi
001-13253
64-0676974
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification Number)

209 Troy Street, Tupelo, Mississippi 38804-4827

(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, including area code: (662) 680-1001

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o





Item 2.02. Results of Operations and Financial Condition.
 
On April 23, 2019, Renasant Corporation issued a press release announcing earnings for the first quarter of 2019. The press release is furnished as Exhibit 99.1 to this Form 8-K.

Item 9.01.    Financial Statements and Exhibits.
(d)    The following exhibit is furnished herewith:
Exhibit No.    Description
99.1
Press release dated April 23, 2019 issued by Renasant Corporation announcing earnings for the first quarter of 2019.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

                        


RENASANT CORPORATION
 
 
 
 
Date: April 23, 2019
 
By:
/s/ C. Mitchell Waycaster
 
 
 
C. Mitchell Waycaster
 
 
 
President and Chief Executive Officer
 
 
 
 
































(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


397618481_ex991rnstcorpimagea15.jpg



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
 
 

RENASANT CORPORATION ANNOUNCES
DIVIDEND INCREASE AND FIRST QUARTER 2019 EARNINGS


TUPELO, MISSISSIPPI (April 23, 2019) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the first quarter of 2019. Net income for the first quarter of 2019 was $45.1 million, as compared to $33.8 million for the first quarter of 2018. Basic and diluted earnings per share (“EPS”) were $0.77 for the first quarter of 2019, as compared to basic and diluted EPS of $0.69 and $0.68, respectively, for the first quarter of 2018.

In addition, on April 23, 2019, the Board of Directors of the Company declared a quarterly cash dividend of $0.22 per share to be paid on June 28, 2019 to shareholders of record as of June 14, 2019. The per share dividend represents a $0.01 increase from the dividend paid in the previous quarter and the fifth dividend increase since March 31, 2016.

“We’re proud of our results for the first quarter of 2019, in which we again achieved record EPS,” said Renasant Executive Chairman, E. Robinson McGraw. “Our strong earnings, coupled with our superior profitability metrics, is evidence that we continue to generate robust levels of capital at a consistent pace.  Yesterday, our board approved an increase to our quarterly cash dividend to $0.22,

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the third increase over the past year. We will continue to prudently manage our capital and take advantage of other opportunities to return value to our shareholders.”

“Our first quarter results prove our commitment to enhancing our profitability while at the same time effectively managing risk,” said Renasant President and CEO, C. Mitchell Waycaster. “We remained disciplined in our pricing decisions and prudent in our underwriting standards such that we maintained a stable core margin without sacrificing credit quality.  Furthermore, we are excited about the additional talent we have added over the last two quarters throughout our footprint. We also intend to take advantage of ongoing market disruptions to bring seasoned lenders and bankers to our team, positioning us well for continued growth during 2019.”

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 March 31, 2019
 
Three months ended March 31, 2018
 
Pre-tax

After-tax

Impact to Diluted EPS
 
Pre-tax

After-tax

Impact to Diluted EPS
Earnings, as reported
$
58,700

$
45,110

$
0.77

 
$
43,499

$
33,826

$
0.68

Merger and conversion expenses



 
900

700

0.02

Earnings, with exclusions (Non-GAAP)
$
58,700

$
45,110

$
0.77

 
$
44,399

$
34,526

$
0.70


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, for the dates presented:

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As Reported
Excluding merger and conversion expenses
(Non-GAAP)
 
Three Months Ended
Three Months Ended
 
March 31, 2019
December 31, 2018
March 31, 2018
March 31, 2019
December 31, 2018
March 31, 2018
Return on average assets
1.44
%
1.39
%
1.36
%
1.44
%
1.43
%
1.39
%
Return on average tangible assets (Non-GAAP)
1.61
%
1.56
%
1.51
%
1.61
%
1.60
%
1.54
%
Return on average equity
8.86
%
8.72
%
9.00
%
8.86
%
8.97
%
9.19
%
Return on average tangible equity (Non-GAAP)
17.41
%
17.44
%
16.02
%
17.41
%
17.92
%
16.34
%


Financial Condition
Total assets were $12.86 billion at March 31, 2019, as compared to $12.93 billion at December 31, 2018.

While total loans, excluding loans held for sale, at March 31, 2019 grew only slightly when compared to December 31, 2018, loans not purchased increased $175.9 million to $6.57 billion at March 31, 2019 as compared to $6.39 billion at December 31, 2018. Loan production for the first quarter of 2019 was $373.6 million as compared to $396.6 million for the same period in 2018.

Total deposits increased to $10.3 billion at March 31, 2019, from $10.1 billion at December 31, 2018. Non-interest bearing deposits averaged $2.3 billion, or 23.1% of average deposits, for the first quarter of 2019, compared to $1.8 billion, or 22.4% of average deposits, for the same period in 2018.

At March 31, 2019, Tier 1 leverage capital ratio was 10.44%, Common Equity Tier 1 ratio was 11.49%, Tier 1 risk-based capital ratio was 12.55%, and total risk-based capital ratio was 14.57%. All regulatory ratios exceed the minimums required to be considered “well-capitalized.”

Our ratio of shareholders’ equity to assets was 16.24% at March 31, 2019, as compared to 15.80% at December 31, 2018. Our tangible capital ratio (non-GAAP) was 9.36% at March 31, 2019, as compared to 8.92% at December 31, 2018.

The Company announced a $50.0 million stock repurchase program in October 2018 under which $42.9 million was available as of December 31, 2018. No shares were repurchased in the first

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quarter of 2019. 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 $113.1 million for the first quarter of 2019, as compared to $115.5 million for the fourth quarter of 2018 and $89.2 million for the first 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
 
March 31,
December 31,
March 31,
 
2019
2018
2018
Taxable equivalent net interest income
$
114,631

$
116,933

$
90,807

 
 
 
 
Average earning assets
$
10,895,205

$
10,952,024

$
8,760,679

 
 
 
 
Net interest margin
4.27
%
4.24
%
4.20
%
 
 
 
 
Taxable equivalent interest income on loans
$
127,206

$
127,880

$
95,044

 
 
 
 
Average loans, including loans held for sale
$
9,405,066

$
9,548,486

$
7,799,290

 
 
 
 
Loan yield
5.49
%
5.31
%
4.94
%

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
 
March 31,
December 31,
March 31,
 
2019
2018
2018
Net interest income collected on problem loans
$
812

$
744

$
358

Accretable yield recognized on purchased loans(1)
7,542

7,236

6,118

Total impact to interest income
$
8,354

$
7,980

$
6,476

 
 
 
 
Impact to total loan yield
0.36
%
0.33
%
0.34
%
 
 
 
 
Impact to net interest margin
0.31
%
0.29
%
0.30
%

(1) 
Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $3,833, $3,095 and $3,358 for the three months ended March 31, 2019, December 31, 2018, and March 31, 2018, respectively. This additional interest income increased total loan yield by 17 basis points, 13 basis points and 17 basis points for the same periods, respectively, while increasing net interest margin by 14 basis points, 11 basis points and 16 basis points for the same periods, respectively.
 
 
 
 
 
 

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For the first quarter of 2019, the cost of total deposits was 79 basis points, as compared to 67 basis points for the fourth quarter of 2018 and 40 basis points in the first quarter of 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
 
March 31,
 
December 31,
 
March 31,
 
March 31,
 
December 31,
 
March 31,
 
2019
 
2018
 
2018
 
2019
 
2018
 
2018
Noninterest-bearing demand
22.30
%
 
22.71
%
 
21.52
%
 
%
 
%
 
%
Interest-bearing demand
45.60

 
44.89

 
46.31

 
0.85

 
0.69

 
0.35

Savings
6.00

 
5.82

 
6.88

 
0.19

 
0.16

 
0.11

Time deposits
22.65

 
22.73

 
21.56

 
1.60

 
1.45

 
1.00

Borrowed funds
3.45

 
3.85

 
3.73

 
4.66

 
4.31

 
3.98

Total deposits and borrowed funds
100.00
%
 
100.00
%
 
100.00
%
 
0.92
%
 
0.81
%
 
0.53
%
 
 
 
 
 
 
 
 
Noninterest income for the first quarter of 2019 was $35.9 million, as compared to $36.4 million for the fourth quarter of 2018 and $34.0 million for the first quarter of 2018. Mortgage banking income for the first quarter of 2019 was $10.4 million, compared to $12.0 million for the fourth quarter of 2018 and $11.0 million for the first quarter of 2018. Brand Mortgage Group, LLC, which was divested on November 1, 2018, contributed $2.0 million to mortgage banking income during the fourth quarter of 2018.

Noninterest expense was $88.8 million for the first quarter of 2019, as compared to $93.3 million for the fourth quarter of 2018 and $77.9 million for the first quarter of 2018.

Excluding charges for merger and conversion expenses, amortization of intangible assets and gains and losses on the sale of securities, the Company’s efficiency ratio (non-GAAP) was 57.62% for the first quarter of 2019 as compared to 58.39% for the fourth quarter of 2018 and 60.43% for the first quarter of 2018. By effectively managing expenses while at the same time focusing on margin expansion and diversification of revenue streams, the Company has maintained an efficiency ratio below 60% for each of the past four quarters, which has been a long-term goal of the Company.


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Asset Quality Metrics
Total nonperforming assets were $37.2 million at March 31, 2019, as compared to $37.0 million at December 31, 2018, and consisted of $27.0 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $10.2 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 $13.3 million and $5.9 million, respectively, at March 31, 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 $13.7 million, or 0.21% of total non-purchased loans, at March 31, 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 0.35% at March 31, 2019, as compared to 0.27% at December 31, 2018.

Non-purchased OREO was $4.2 million at March 31, 2019, as compared to $4.9 million at December 31, 2018. Non-purchased OREO sales totaled $802 thousand in the first quarter of 2019.

The allowance for loan losses was 0.55% of total loans held for investment at March 31, 2019 , as compared to 0.54% at December 31, 2018. The allowance for loan losses was 0.76% of total non-purchased loans at March 31, 2019, as compared to 0.77% at December 31, 2018.

Net loan charge-offs were $691 thousand, or 0.03% of average loans held for investment on an annualized basis, for the first quarter of 2019, as compared to $584 thousand, or 0.03% of average loans held for investment on an annualized basis, for the fourth quarter of 2018.
 
The provision for loan losses was $1.5 million for the first quarter of 2019, as compared to $1.0 million for the fourth quarter of 2018 and $1.8 million for the first quarter of 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 Wednesday, April 24, 2019.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or https://services.choruscall.com/links/rnst190424.html. To access the conference via telephone,

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dial 1-877-513-1143 in the United States and request the Renasant Corporation First 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 10130580 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until May 8, 2019.

ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 115-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, net income (or earnings), with exclusions, 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/or 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

7



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.


###

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RENASANT CORPORATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019 -
 
For The Three Months Ending
 
 
 
 
2019
 
2018
 
 
Q4 2018
 
March 31,
 
 
 
 
First
 
Fourth
 
Third
 
Second
 
First
 
 
Percent
 
 
 
 
 
Percent
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
Variance
 
2019
 
2018
 
Variance
Statement of earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income - taxable equivalent basis
$
138,578

 
$
138,581

 
$
119,236

 
$
107,991

 
$
101,947

 
 
 %
 
$
138,578

 
$
101,947

 
35.93
 %
Interest income
$
137,094

 
$
137,105

 
$
117,795

 
$
106,574

 
$
100,380

 
 
(0.01
)
 
$
137,094

 
$
100,380

 
36.58

Interest expense
23,947

 
21,648

 
18,356

 
14,185

 
11,140

 
 
10.62

 
23,947

 
11,140

 
114.96

 
Net interest income
113,147

 
115,457

 
99,439

 
92,389

 
89,240

 
 
(2.00
)
 
113,147

 
89,240

 
26.79

Provision for loan losses
1,500

 
1,000

 
2,250

 
1,810

 
1,750

 
 
50.00

 
1,500

 
1,750

 
(14.29
)
 
Net interest income after provision
111,647

 
114,457

 
97,189

 
90,579

 
87,490

 
 
(2.46
)
 
111,647

 
87,490

 
27.61

Service charges on deposit accounts
9,102

 
9,069

 
8,847

 
8,271

 
8,473

 
 
0.36

 
9,102

 
8,473

 
7.42

Fees and commissions on loans and deposits
6,471

 
6,322

 
5,944

 
5,917

 
5,685

 
 
2.36

 
6,471

 
5,685

 
13.83

Insurance commissions and fees
2,116

 
2,014

 
2,461

 
2,110

 
2,005

 
 
5.06

 
2,116

 
2,005

 
5.54

Wealth management revenue
3,324

 
3,446

 
3,386

 
3,446

 
3,262

 
 
(3.54
)
 
3,324

 
3,262

 
1.90

Securities gains (losses)
13

 

 
(16
)
 

 

 
 
100.00

 
13

 

 
100.00

Mortgage banking income
10,401

 
11,993

 
14,350

 
12,839

 
10,960

 
 
(13.27
)
 
10,401

 
10,960

 
(5.10
)
Other
4,458

 
3,530

 
3,081

 
2,998

 
3,568

 
 
26.29

 
4,458

 
3,568

 
24.94

 
Total noninterest income
35,885

 
36,374

 
38,053

 
35,581

 
33,953

 
 
(1.34
)
 
35,885

 
33,953

 
5.69

Salaries and employee benefits
57,350

 
58,313

 
55,187

 
52,010

 
48,784

 
 
(1.65
)
 
57,350

 
48,784

 
17.56

Data processing
4,906

 
5,169

 
4,614

 
4,600

 
4,244

 
 
(5.09
)
 
4,906

 
4,244

 
15.60

Occupancy and equipment
11,835

 
11,816

 
10,668

 
9,805

 
9,822

 
 
0.16

 
11,835

 
9,822

 
20.49

Other real estate
1,004

 
725

 
278

 
232

 
657

 
 
38.48

 
1,004

 
657

 
52.82

Amortization of intangibles
2,110

 
2,169

 
1,765

 
1,594

 
1,651

 
 
(2.72
)
 
2,110

 
1,651

 
27.80

Merger and conversion related expenses

 
1,625

 
11,221

 
500

 
900

 
 
(100.00
)
 

 
900

 
(100.00
)
Other
11,627

 
13,496

 
11,013

 
10,285

 
11,886

 
 
(13.85
)
 
11,627

 
11,886

 
(2.18
)
 
Total noninterest expense
88,832

 
93,313

 
94,746

 
79,026

 
77,944

 
 
(4.80
)
 
88,832

 
77,944

 
13.97

Income before income taxes
58,700

 
57,518

 
40,496

 
47,134

 
43,499

 
 
2.06

 
58,700

 
43,499

 
34.95

Income taxes
13,590

 
13,098

 
8,532

 
10,424

 
9,673

 
 
3.76

 
13,590

 
9,673

 
40.49

 
Net income
$
45,110

 
$
44,420

 
$
31,964

 
$
36,710

 
$
33,826

 
 
1.55

 
$
45,110

 
$
33,826

 
33.36

Basic earnings per share
$
0.77

 
$
0.76

 
$
0.61

 
$
0.74

 
$
0.69

 
 
1.32

 
$
0.77

 
$
0.69

 
11.59

Diluted earnings per share
0.77

 
0.76

 
0.61

 
0.74

 
0.68

 
 
1.32

 
0.77

 
0.68

 
13.24

Average basic shares outstanding
58,585,517

 
58,623,646

 
52,472,971

 
49,413,754

 
49,356,417

 
 
(0.07
)
 
58,585,517

 
49,356,417

 
18.70

Average diluted shares outstanding
58,730,535

 
58,767,519

 
52,609,902

 
49,549,761

 
49,502,950

 
 
(0.06
)
 
58,730,535

 
49,502,950

 
18.64

Common shares outstanding
58,633,630

 
58,546,480

 
58,743,814

 
49,424,339

 
49,392,978

 
 
0.15

 
58,633,630

 
49,392,978

 
18.71

Cash dividend per common share
$
0.21

 
$
0.21

 
$
0.20

 
$
0.20

 
$
0.19

 
 

 
$
0.21

 
$
0.19

 
10.53

Performance ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on avg shareholders' equity
8.86
%
 
8.72
%
 
7.40
%
 
9.55
%
 
9.00
%
 
 
 
 
8.86
%
 
9.00
%
 
 
Return on avg tangible s/h's equity (1)
17.41
%
 
17.44
%
 
13.65
%
 
16.75
%
 
16.02
%
 
 
 
 
17.41
%
 
16.02
%
 
 
Return on avg assets
1.44
%
 
1.39
%
 
1.12
%
 
1.42
%
 
1.36
%
 
 
 
 
1.44
%
 
1.36
%
 
 
Return on avg tangible assets (2)
1.61
%
 
1.56
%
 
1.26
%
 
1.57
%
 
1.51
%
 
 
 
 
1.61
%
 
1.51
%
 
 
Net interest margin (FTE)
4.27
%
 
4.24
%
 
4.07
%
 
4.15
%
 
4.20
%
 
 
 
 
4.27
%
 
4.20
%
 
 
Yield on earning assets (FTE)
5.16
%
 
5.02
%
 
4.81
%
 
4.78
%
 
4.72
%
 
 
 
 
5.16
%
 
4.72
%
 
 
Cost of funding
0.92
%
 
0.81
%
 
0.77
%
 
0.65
%
 
0.53
%
 
 
 
 
0.92
%
 
0.53
%
 
 
Average earning assets to average assets
85.58
%
 
86.15
%
 
87.29
%
 
87.67
%
 
87.12
%
 
 
 
 
85.58
%
 
87.12
%
 
 
Average loans to average deposits
89.33
%
 
89.77
%
 
91.74
%
 
91.84
%
 
94.04
%
 
 
 
 
89.33
%
 
94.04
%
 
 
Noninterest income (less securities gains/
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
losses) to average assets
1.14
%
 
1.14
%
 
1.34
%
 
1.38
%
 
1.37
%
 
 
 
 
1.14
%
 
1.37
%
 
 
Noninterest expense (less debt prepayment penalties/
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
penalties/merger-related expenses) to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
average assets
2.83
%
 
2.86
%
 
2.94
%
 
3.05
%
 
3.11
%
 
 
 
 
2.83
%
 
3.11
%
 
 
Net overhead ratio
1.69
%
 
1.72
%
 
1.60
%
 
1.67
%
 
1.74
%
 
 
 
 
1.69
%
 
1.74
%
 
 
Efficiency ratio (FTE) (4)
57.62
%
 
58.39
%
 
58.84
%
 
59.46
%
 
60.43
%
 
 
 
 
57.62
%
 
60.43
%
 
 

9



RENASANT CORPORATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019 -
 
For The Three Months Ending
 
 
 
 
2019
 
2018
 
 
Q4 2018
 
March 31,
 
 
 
 
First
 
Fourth
 
Third
 
Second
 
First
 
 
Percent
 
 
 
 
 
Percent
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
Variance
 
2019
 
2018
 
Variance
Average Balances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
12,730,939

 
$
12,713,000

 
$
11,276,587

 
$
10,341,863

 
$
10,055,755

 
 
0.14
 %
 
$
12,730,939

 
$
10,055,755

 
26.60
 %
Earning assets
10,895,205

 
10,952,023

 
9,843,870

 
9,067,016

 
8,760,679

 
 
(0.52
)
 
10,895,205

 
8,760,679

 
24.36

Securities
1,253,224

 
1,240,283

 
1,129,010

 
1,039,947

 
833,076

 
 
1.04

 
1,253,224

 
833,076

 
50.43

Loans held for sale
345,264

 
418,213

 
297,692

 
209,652

 
152,299

 
 
(17.44
)
 
345,264

 
152,299

 
126.70

Loans, net of unearned
9,059,802

 
9,130,273

 
8,228,053

 
7,704,221

 
7,646,991

 
 
(0.77
)
 
9,059,802

 
7,646,991

 
18.48

Intangibles
976,820

 
972,736

 
743,567

 
633,155

 
634,898

 
 
0.42

 
976,820

 
634,898

 
53.85

Noninterest-bearing deposits
$
2,342,406

 
$
2,402,422

 
$
2,052,226

 
$
1,867,925

 
$
1,817,848

 
 
(2.50
)
 
$
2,342,406

 
$
1,817,848

 
28.86

Interest-bearing deposits
7,799,892

 
7,768,724

 
6,916,699

 
6,521,123

 
6,314,114

 
 
0.40

 
7,799,892

 
6,314,114

 
23.53

Total deposits
10,142,298

 
10,171,146

 
8,968,925

 
8,389,048

 
8,131,962

 
 
(0.28
)
 
10,142,298

 
8,131,962

 
24.72

Borrowed funds
363,140

 
407,496

 
499,054

 
329,287

 
314,228

 
 
(10.89
)
 
363,140

 
314,228

 
15.57

Shareholders' equity
2,065,370

 
2,021,075

 
1,712,757

 
1,542,071

 
1,523,873

 
 
2.19

 
2,065,370

 
1,523,873

 
35.53

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019 -
 
As of
 
2019
 
2018
 
 
Q4 2018
 
March 31,
 
First
 
Fourth
 
Third
 
Second
 
First
 
 
Percent
 
 
 
 
 
Percent
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
Variance
 
2019
 
2018
 
Variance
Balances at period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
12,862,395

 
$
12,934,878

 
$
12,746,939

 
$
10,544,475

 
$
10,238,313

 
 
(0.56
)%
 
$
12,862,395

 
$
10,238,313

 
25.63
 %
Earning assets
11,015,535

 
11,115,929

 
10,962,958

 
9,239,200

 
8,938,117

 
 
(0.90
)
 
11,015,535

 
8,938,117

 
23.24

Securities
1,255,353

 
1,250,777

 
1,177,606

 
1,088,779

 
948,365

 
 
0.37

 
1,255,353

 
948,365

 
32.37

Loans held for sale
318,563

 
411,427

 
463,287

 
245,046

 
204,472

 
 
(22.57
)
 
318,563

 
204,472

 
55.80

Non purchased loans
6,565,599

 
6,389,712

 
6,210,238

 
6,057,766

 
5,830,122

 
 
2.75

 
6,565,599

 
5,830,122

 
12.62

Purchased loans
2,522,694

 
2,693,417

 
2,912,669

 
1,709,891

 
1,867,948

 
 
(6.34
)
 
2,522,694

 
1,867,948

 
35.05

 
Total loans
9,088,293

 
9,083,129

 
9,122,907

 
7,767,657

 
7,698,070

 
 
0.06

 
9,088,293

 
7,698,070

 
18.06

Intangibles
975,726

 
977,793

 
974,115

 
632,311

 
633,905

 
 
(0.21
)
 
975,726

 
633,905

 
53.92

Noninterest-bearing deposits
$
2,366,223

 
$
2,318,706

 
$
2,359,859

 
$
1,888,561

 
$
1,861,136

 
 
2.05

 
$
2,366,223

 
$
1,861,136

 
27.14

Interest-bearing deposits
7,902,689

 
7,809,851

 
7,812,089

 
6,492,159

 
6,496,633

 
 
1.19

 
7,902,689

 
6,496,633

 
21.64

 
Total deposits
10,268,912

 
10,128,557

 
10,171,948

 
8,380,720

 
8,357,769

 
 
1.39

 
10,268,912

 
8,357,769

 
22.87

Borrowed funds
350,859

 
651,324

 
439,516

 
520,747

 
265,191

 
 
(46.13
)
 
350,859

 
265,191

 
32.30

Shareholders' equity
2,088,877

 
2,043,913

 
2,010,711

 
1,558,668

 
1,532,765

 
 
2.20

 
2,088,877

 
1,532,765

 
36.28

Market value per common share
$
33.85

 
$
30.18

 
$
41.21

 
$
45.52

 
$
42.56

 
 
12.16

 
$
33.85

 
$
42.56

 
(20.47
)
Book value per common share
35.63

 
34.91

 
34.23

 
31.54

 
31.03

 
 
2.06

 
35.63

 
31.03

 
14.82

Tangible book value per common share
18.98

 
18.21

 
17.65

 
18.74

 
18.20

 
 
4.23

 
18.98

 
18.20

 
4.29

Shareholders' equity to assets (actual)
16.24
%
 
15.80
%
 
15.77
%
 
14.78
%
 
14.97
%
 
 
 
 
16.24
%
 
14.97
%
 
 
Tangible capital ratio (3)
9.36
%
 
8.92
%
 
8.80
%
 
9.35
%
 
9.36
%
 
 
 
 
9.36
%
 
9.36
%
 
 
Leverage ratio
10.44
%
 
10.11
%
 
9.85
%
 
10.63
%
 
10.61
%
 
 
 
 
10.44
%
 
10.61
%
 


Common equity tier 1 capital ratio
11.49
%
 
11.05
%
 
10.80
%
 
11.71
%
 
11.38
%
 
 
 
 
11.49
%
 
11.38
%
 


Tier 1 risk-based capital ratio
12.55
%
 
12.10
%
 
11.84
%
 
12.73
%
 
12.41
%
 
 
 
 
12.55
%
 
12.41
%
 


Total risk-based capital ratio
14.57
%
 
14.12
%
 
13.85
%
 
14.75
%
 
14.44
%
 
 
 
 
14.57
%
 
14.44
%
 



10



RENASANT CORPORATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019 -
 
As of
 
 
 
 
2019
 
2018
 
 
Q4 2018
 
March 31,
 
 
 
 
First
 
Fourth
 
Third
 
Second
 
First
 
 
Percent
 
 
 
 
 
Percent
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
Variance
 
2019
 
2018
 
Variance
Non purchased loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
921,081
 
$
875,649

 
$
817,799

 
$
790,363

 
$
803,146

 
 
5.19
 %
 
$
921,081

 
$
803,146

 
14.68
 %
Lease Financing
58,651
 
61,865

 
54,272

 
52,423

 
52,536

 
 
(5.20
)
 
58,651

 
52,536

 
11.64

Real estate- construction
651,119
 
635,519

 
624,892

 
642,380

 
582,430

 
 
2.45

 
651,119

 
582,430

 
11.79

Real estate - 1-4 family mortgages
2,114,908
 
2,087,890

 
2,000,770

 
1,912,450

 
1,785,271

 
 
1.29

 
2,114,908

 
1,785,271

 
18.46

Real estate - commercial mortgages
2,726,186
 
2,628,365

 
2,609,510

 
2,554,955

 
2,503,680

 
 
3.72

 
2,726,186

 
2,503,680

 
8.89

Installment loans to individuals
93,654
 
100,424

 
102,995

 
105,195

 
103,059

 
 
(6.74
)
 
93,654

 
103,059

 
(9.13
)
Loans, net of unearned
$
6,565,599
 
$
6,389,712

 
$
6,210,238

 
$
6,057,766

 
$
5,830,122

 
 
2.75

 
$
6,565,599

 
$
5,830,122

 
12.62

Purchased loans
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
Commercial, financial, agricultural
$
387,376
 
$
420,263

 
$
495,545

 
$
197,455

 
$
243,672

 
 
(7.83
)
 
$
387,376

 
$
243,672

 
58.97

Lease Financing
 

 

 

 

 
 

 

 

 

Real estate- construction
89,954
 
105,149

 
112,093

 
70,438

 
75,061

 
 
(14.45
)
 
89,954

 
75,061

 
19.84

Real estate - 1-4 family mortgages
654,265
 
707,453

 
761,913

 
520,649

 
572,830

 
 
(7.52
)
 
654,265

 
572,830

 
14.22

Real estate - commercial mortgages
1,357,446
 
1,423,144

 
1,503,075

 
906,219

 
960,273

 
 
(4.62
)
 
1,357,446

 
960,273

 
41.36

Installment loans to individuals
33,653
 
37,408

 
40,043

 
15,130

 
16,112

 
 
(10.04
)
 
33,653

 
16,112

 
108.87

Loans, net of unearned
$
2,522,694
 
$
2,693,417

 
$
2,912,669

 
$
1,709,891

 
$
1,867,948

 
 
(6.34
)
 
$
2,522,694

 
$
1,867,948

 
35.05

Asset quality data
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
Non purchased assets
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
Nonaccrual loans
$
12,507
 
$
10,218

 
$
9,696

 
$
8,921

 
$
9,403

 
 
22.40

 
$
12,507

 
$
9,403

 
33.01

Loans 90 past due or more
1,192
 
2,685

 
3,806

 
2,190

 
3,605

 
 
(55.61
)
 
1,192

 
3,605

 
(66.93
)
Nonperforming loans
13,699
 
12,903

 
13,502

 
11,111

 
13,008

 
 
6.17

 
13,699

 
13,008

 
5.31

Other real estate owned
4,223
 
4,853

 
4,665

 
4,698

 
4,801

 
 
(12.98
)
 
4,223

 
4,801

 
(12.04
)
Nonperforming assets
$
17,922
 
$
17,756

 
$
18,167

 
$
15,809

 
$
17,809

 
 
0.93

 
$
17,922

 
$
17,809

 
0.63

Purchased assets
 
 
 
 
 
 
 
 
 
 


 
 
 

 


Nonaccrual loans
$
7,828
 
$
5,836

 
$
4,809

 
$
4,561

 
$
5,340

 
 
34.13

 
$
7,828

 
$
5,340

 
46.59

Loans 90 past due or more
5,436
 
7,232

 
7,960

 
5,491

 
4,564

 
 
(24.83
)
 
5,436

 
4,564

 
19.11

Nonperforming loans
13,264
 
13,068

 
12,769

 
10,052

 
9,904

 
 
1.50

 
13,264

 
9,904

 
33.93

Other real estate owned
5,932
 
6,187

 
7,932

 
9,006

 
9,754

 
 
(4.12
)
 
5,932

 
9,754

 
(39.18
)
Nonperforming assets
$
19,196
 
$
19,255

 
$
20,701

 
$
19,058

 
$
19,658

 
 
(0.31
)
 
$
19,196

 
$
19,658

 
(2.35
)
Net loan charge-offs (recoveries)
$
691
 
$
584

 
$
995

 
$
856

 
$
1,560

 
 
18.32

 
$
691

 
$
1,560

 
(55.71
)
Allowance for loan losses
$
49,835
 
$
49,026

 
$
48,610

 
$
47,355

 
$
46,401

 
 
1.65

 
$
49,835

 
$
46,401

 
7.40

Annualized net loan charge-offs / average loans
0.03
%
0.03
%
 
0.05
%
 
0.04
%
 
0.08
%
 
 
 
 
0.03
%
 
0.08
%
 
 
Nonperforming loans / total loans*
0.30
%
0.29
%
 
0.29
%
 
0.27
%
 
0.30
%
 
 
 
 
0.30
%
 
0.30
%
 
 
Nonperforming assets / total assets*
0.29
%
0.29
%
 
0.30
%
 
0.33
%
 
0.37
%
 
 
 
 
0.29
%
 
0.37
%
 
 
Allowance for loan losses / total loans*
0.55
%
0.54
%
 
0.53
%
 
0.61
%
 
0.60
%
 
 
 
 
0.55
%
 
0.60
%
 
 
Allowance for loan losses / nonperforming loans*
184.83
%
188.77
%
 
185.03
%
 
223.76
%
 
202.52
%
 
 
 
 
184.83
%
 
202.52
%
 
 
Nonperforming loans / total loans**
0.21
%
0.20
%
 
0.22
%
 
0.18
%
 
0.22
%
 
 
 
 
0.21
%
 
0.22
%
 
 
Nonperforming assets / total assets**
0.14
%
0.14
%
 
0.14
%
 
0.15
%
 
0.17
%
 
 
 
 
0.14
%
 
0.17
%
 
 
Allowance for loan losses / total loans**
0.76
%
0.77
%
 
0.78
%
 
0.78
%
 
0.80
%
 
 
 
 
0.76