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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

July 22, 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

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, $5.00 par value per share
RNST
The NASDAQ Stock Market LLC




Item 2.02. Results of Operations and Financial Condition.
 
On July 22, 2019, Renasant Corporation issued a press release announcing earnings for the second 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 July 22, 2019 issued by Renasant Corporation announcing earnings for the second 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: July 22, 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


398839405_ex991rnstcorpimagea16.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 ANNOUNCES SECOND QUARTER 2019 RESULTS;
NEW HIRING BOLSTERS GROWTH OUTLOOK

TUPELO, MISSISSIPPI (July 22, 2019) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the second quarter of 2019. Net income for the second quarter of 2019 was $46.6 million, as compared to $36.7 million for the second quarter of 2018. Basic and diluted earnings per share (“EPS”) were $0.80 for the second quarter of 2019, as compared to basic and diluted EPS of $0.74 for the second quarter of 2018.

Net income for the six months ending June 30, 2019, was $91.7 million, as compared to $70.5 million for the same time period in 2018. Basic and diluted EPS were $1.57 and $1.56, respectively, for the first six months of 2019, as compared to basic and diluted EPS of $1.43 and $1.42, respectively, for the first six months of 2018.

As discussed in more detail below, the Company's net income for the second quarter and first half of 2019 includes approximately $1.1 million and $1.2 million, respectively, in after-tax expense related to production team members that have joined the Company in the first half of 2019. The expense related to these strategic hires decreased diluted EPS by $0.02 for both the quarter and the six months ended June 30, 2019.


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"We closed the quarter with solid results, while navigating through the uncertainty around the direction of interest rates and other macro-economic factors that have clouded much of 2019," said Renasant Chairman, E. Robinson McGraw. "Our continued effort to effectively manage our core business in light of the economic pressures we face has consistently driven greater shareholder value. Our profitability metrics continue to remain strong, and we will continue to evaluate opportunities to return value to our shareholders."

New Hiring Bolsters Growth Outlook
The Company previously announced that Curtis Perry has joined Renasant Bank as its Chief Corporate Banking Officer. Mr. Perry brings more than 34 years of experience in corporate banking, and we expect that his knowledge and connections will broaden our corporate banking operations as well as generate additional hiring opportunities for Renasant. Since joining Renasant and through the date of this release, Mr. Perry has successfully recruited 13 corporate bankers and other revenue producers throughout our footprint.

In addition to the corporate hires by Mr. Perry, the Company hired 18 revenue producers, including new market presidents, commercial relationship managers and retail bankers, across the footprint during the second quarter of 2019. Recruiting efforts remain ongoing to support the Company's long term growth strategy.

"In addition to the tremendous talent that already makes up our team, we made significant investments in production talent during the quarter which has amplified our long-term growth goals," commented C. Mitchell Waycaster, Renasant President and Chief Executive Officer. "Although this hiring had an immediate impact on our expenses, we expect our new teammates to generate loan portfolios over the next 9 to 12 months and provide additional loan growth into 2020 and beyond significantly enhancing our revenue growth and profitability."

While focusing on growth, the Company remains disciplined in its pricing decisions and prudent in in its underwriting standards. The Company has added three senior credit officers and other credit support staff to complement its already strong credit team and to support the new production team members.

With the current disruption throughout its footprint caused by recent merger activity and other factors, the Company expects to continue to be successful in its recruiting efforts in future quarters.

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Although the Company is capitalizing on this market disruption to accelerate the pace of building out its corporate and commercial banking teams, the Company believes that it is positioned for growth and expansion from all lines of businesses and markets.

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:
 
As Reported
Excluding merger and conversion expenses
(Non-GAAP)
 
Three Months Ended
Three Months Ended
 
June 30, 2019
March 31, 2019
June 30, 2018
June 30, 2019
March 31, 2019
June 30, 2018
Return on average assets
1.47
%
1.44
%
1.42
%
1.47
%
1.44
%
1.44
%
Return on average tangible assets (Non-GAAP)
1.64
%
1.61
%
1.57
%
1.64
%
1.61
%
1.58
%
Return on average equity
8.90
%
8.86
%
9.55
%
8.92
%
8.86
%
9.65
%
Return on average tangible equity (Non-GAAP)
17.15
%
17.41
%
16.75
%
17.20
%
17.41
%
16.92
%
 
As Reported
Excluding merger and conversion expenses
(Non-GAAP)
 
Six Months Ended
Six Months Ended
 
June 30, 2019
 
June 30, 2018
June 30, 2019
 
June 30, 2018
Return on average assets
1.45
%
 
1.39
%
1.45
%
 
1.42
%
Return on average tangible assets (Non-GAAP)
1.63
%
 
1.54
%
1.63
%
 
1.56
%
Return on average equity
8.88
%
 
9.28
%
8.89
%
 
9.42
%
Return on average tangible equity (Non-GAAP)
17.28
%
 
16.39
%
17.30
%
 
16.63
%

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.

Financial Condition
Total assets were $12.89 billion at June 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

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and six months ended June 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 $9.05 billion at June 30, 2019 as compared to $9.08 billion at December 31, 2018. Loans not purchased increased $314.6 million to $6.70 billion at June 30, 2019 as compared to $6.39 billion at December 31, 2018.

Total deposits increased to $10.2 billion at June 30, 2019, from $10.1 billion at December 31, 2018. Even as interest rates on deposits increased in the first half of 2019, the Company has experienced success in growing its non-interest bearing deposits. Non-interest bearing deposits averaged $2.4 billion, or 23.4% of average deposits, for the first six months of 2019, compared to $1.8 billion, or 22.3% of average deposits, for the same period in 2018.

At June 30, 2019, Tier 1 leverage capital ratio was 10.65%, Common Equity Tier 1 ratio was 11.64%, Tier 1 risk-based capital ratio was 12.69%, and total risk-based capital ratio was 14.62%. All regulatory ratios exceed the minimums required to be considered “well-capitalized.”

Our ratio of shareholders’ equity to assets was 16.44% at June 30, 2019, as compared to 15.80% at December 31, 2018. Our tangible capital ratio (non-GAAP) was 9.62% at June 30, 2019, as compared to 8.92% at December 31, 2018.

The Company announced a $50.0 million stock repurchase program in October 2018. During the second quarter of 2019, the Company repurchased $12.9 million of common stock at a weighted average price of $35.57. Since the date the program was authorized, a total of $20.0 million of common stock has been repurchased. 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 $112.8 million for the second quarter of 2019, as compared to $113.1 million for the first quarter of 2019 and $92.4 million for the second 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).


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Three Months Ended
 
June 30,
March 31,
June 30,
 
2019
2019
2018
Taxable equivalent net interest income
$
114,223

$
114,631

$
93,806

 
 
 
 
Average earning assets
$
10,942,492

$
10,895,205

$
9,067,016

 
 
 
 
Net interest margin
4.19
%
4.27
%
4.15
%
 
 
 
 
Taxable equivalent interest income on loans
$
127,896

$
127,206

$
99,426

 
 
 
 
Average loans, including loans held for sale
$
9,396,891

$
9,405,066

$
7,913,873

 
 
 
 
Loan yield
5.46
%
5.49
%
5.04
%

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
 
June 30,
March 31,
June 30,
 
2019
2019
2018
Net interest income collected on problem loans
$
2,173

$
812

$
1,045

Accretable yield recognized on purchased loans(1)
7,513

7,542

5,719

Total impact to interest income
$
9,686

$
8,354

$
6,764

 
 
 
 
Impact to total loan yield
0.41
%
0.36
%
0.34
%
 
 
 
 
Impact to net interest margin
0.36
%
0.31
%
0.30
%
(1) 
Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $4,197, $3,833 and $3,316 for the three months ended June 30, 2019, December 31, 2018, and June 30, 2018, respectively. This additional interest income increased total loan yield by 18 basis points, 17 basis points and 17 basis points for the same periods, respectively, while increasing net interest margin by 15 basis points, 14 basis points and 15 basis points for the same periods, respectively.

Net interest income was $225.9 million for the first half of 2019, as compared to $181.6 million for the first half 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).


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Six Months Ended
 
June 30,
June 30,
 
2019
2018
Taxable equivalent net interest income
$
228,854

$
184,613

 
 
 
Average earning assets
$
10,918,979

$
8,914,694

 
 
 
Net interest margin
4.23
%
4.18
%
 
 
 
Taxable equivalent interest income on loans
$
255,102

$
194,470

 
 
 
Average loans, including loans held for sale
$
9,400,956

$
7,856,898

 
 
 
Loan yield
5.47
%
4.99
%

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).

 
Six Months Ended
 
June 30,
June 30,
 
2019
2018
Net interest income collected on problem loans
$
2,985

$
1,403

Accretable yield recognized on purchased loans(1)
15,056

11,837

Total impact to interest income
$
18,041

$
13,240

 
 
 
Impact to total loan yield
0.39
%
0.34
%
 
 
 
Impact to net interest margin
0.33
%
0.30
%
(1) 
Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $8,030 and $6,674 for the six months ended June 30, 2019 and 2018, respectively. This additional interest income increased total loan yield by 17 basis points in each period while increasing net interest margin by 15 basis points in each period.

For the second quarter of 2019, the cost of total deposits was 83 basis points, as compared to 79 basis points for the first quarter of 2019 and 52 basis points in the second quarter of 2018. The cost of total deposits was 81 basis points for the first six months of 2019, as compared to 46 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:


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Percentage of Total Average Deposits and Borrowed Funds
 
Cost of Funds
 
Three Months Ending
 
Three Months Ending
 
June 30,
 
March 31,
 
June 30,
 
June 30,
 
March 31,
 
June 30,
 
2019
 
2019
 
2018
 
2019
 
2019
 
2018
Noninterest-bearing demand
22.82
%
 
22.30
%
 
21.43
%
 
%
 
%
 
%
Interest-bearing demand
45.12

 
45.60

 
46.51

 
0.89

 
0.85

 
0.54

Savings
6.14

 
6.00

 
6.80

 
0.20

 
0.19

 
0.15

Time deposits
22.56

 
22.65

 
21.48

 
1.72

 
1.60

 
1.12

Borrowed funds
3.36

 
3.45

 
3.78

 
4.61

 
4.66

 
3.98

Total deposits and borrowed funds
100.00
%
 
100.00
%
 
100.00
%
 
0.96
%
 
0.92
%
 
0.65
%

 
Percentage of Total Average Deposits and Borrowed Funds
 
Cost of Funds
 
Six Months Ending
 
Six Months Ending
 
June 30,
 
June 30,
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Noninterest-bearing demand
22.56
%
 
21.47
%
 
%
 
%
Interest-bearing demand
45.36

 
46.43

 
0.87

 
0.45

Savings
6.07

 
6.84

 
0.20

 
0.13

Time deposits
22.60

 
21.52

 
1.66

 
1.06

Borrowed funds
3.41

 
3.74

 
4.64

 
3.98

Total deposits and borrowed funds
100.00
%
 
100.00
%
 
0.94
%
 
0.60
%

Noninterest income for the second quarter of 2019 was $42.0 million, as compared to $35.9 million for the first quarter of 2019 and $35.6 million for the second quarter of 2018. Mortgage banking income for the second quarter of 2019 was $16.6 million, compared to $10.4 million for the first quarter of 2019 and $12.8 million for the second quarter of 2018. The previously announced acquisition of FirstBank's wholesale mortgage operations was completed on June 7, 2019. On account of the closing date of this transaction, the impact of the acquired operations was immaterial to the Company's mortgage banking income for the second quarter of 2019.

Noninterest expense was $93.3 million for the second quarter of 2019, as compared to $88.8 million for the first quarter of 2019 and $79.0 million for the second 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 58.30% for the second quarter of 2019 and 57.97% for the first six months of 2019, representing the fifth consecutive quarter that the Company has maintained an efficiency ratio below 60%, a long-term goal of the Company.

Asset Quality Metrics
Total nonperforming assets were $42.1 million at June 30, 2019, an increase of $5.1 million from December 31, 2018, and consisted of $33.4 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $8.7 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 $14.9 million and $5.3 million, respectively, at June 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 $18.4 million, or 0.28% of total non-purchased loans, at June 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 0.22% at June 30, 2019, as compared to 0.27% at December 31, 2018.


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Non-purchased OREO was $3.5 million at June 30, 2019, as compared to $4.9 million at December 31, 2018. Non-purchased OREO sales totaled $1.9 million in the first half of 2019.

The allowance for loan losses was 0.55% of total loans held for investment at June 30, 2019 , as compared to 0.54% at December 31, 2018. The allowance for loan losses was 0.75% of total non-purchased loans at June 30, 2019, as compared to 0.77% at December 31, 2018.

Net loan charge-offs were $676 thousand, or 0.03% of average loans held for investment on an annualized basis, for the second quarter of 2019, as compared to $856 thousand, or 0.04% of average loans on an annualized basis, for the second quarter of 2018. Net loan charge-offs were $1.4 million, or 0.03% of average loans on an annualized basis, for the first half of 2019, as compared to $2.4 million, or 0.06% of average loans on an annualized basis, for the same period in 2018.
 
The provision for loan losses was $900 thousand for the second quarter of 2019, as compared to $1.8 million for the second quarter of 2018. The provision was $2.4 million for the first six months of 2019, as compared to $3.6 million for the same time period in 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, July 23, 2019.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or https://services.choruscall.com/links/rnst190723.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Second 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 10133435 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 6, 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:

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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 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 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 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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2019 -
 
For The Six Months Ending
 
 
 
 
 
2019
 
2018
 
Q2 2018
 
June 30,
 
 
 
 
 
Second
 
First
 
Fourth
 
Third
 
Second
 
First
 
Percent
 
 
 
 
 
Percent
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Variance
 
2019
 
2018
 
Variance
Statement of earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income - taxable equivalent basis
 
$
139,285

 
$
138,578

 
$
138,581

 
$
119,236

 
$
107,991

 
$
101,947

 
28.98
 %
 
$
277,863

 
$
209,938

 
32.35
 %
Interest income
 
137,862

 
137,094

 
137,105

 
117,795

 
106,574

 
100,380

 
29.36

 
274,956

 
206,954

 
32.86

Interest expense
 
25,062

 
23,947

 
21,648

 
18,356

 
14,185

 
11,140

 
76.68

 
49,009

 
25,325

 
93.52

 
Net interest income
 
112,800

 
113,147

 
115,457

 
99,439

 
92,389

 
89,240

 
22.09

 
225,947

 
181,629

 
24.40

Provision for loan losses
 
900

 
1,500

 
1,000

 
2,250

 
1,810

 
1,750

 
(50.28
)
 
2,400

 
3,560

 
(32.58
)
 
Net interest income after provision
 
111,900

 
111,647

 
114,457

 
97,189

 
90,579

 
87,490

 
23.54

 
223,547

 
178,069

 
25.54

Service charges on deposit accounts
 
8,605

 
9,102

 
9,069

 
8,847

 
8,271

 
8,473

 
4.04

 
17,707

 
16,744

 
5.75

Fees and commissions on loans and deposits
 
7,047

 
6,471

 
6,322

 
5,944

 
5,917

 
5,685

 
19.10

 
13,518

 
11,602

 
16.51

Insurance commissions and fees
 
2,190

 
2,116

 
2,014

 
2,461

 
2,110

 
2,005

 
3.79

 
4,306

 
4,115

 
4.64

Wealth management revenue
 
3,601

 
3,324

 
3,446

 
3,386

 
3,446

 
3,262

 
4.50

 
6,925

 
6,708

 
3.23

Securities gains (losses)
 
(8
)
 
13

 

 
(16
)
 

 

 
100.00

 
5

 

 
100.00

Mortgage banking income
 
16,620

 
10,401

 
11,993

 
14,350

 
12,839

 
10,960

 
29.45

 
27,021

 
23,799

 
13.54

Other
 
3,905

 
4,458

 
3,530

 
3,081

 
2,998

 
3,568

 
30.25

 
8,363

 
6,566

 
27.37

 
Total noninterest income
 
41,960

 
35,885

 
36,374

 
38,053

 
35,581

 
33,953

 
17.93

 
77,845

 
69,534

 
11.95

Salaries and employee benefits
 
60,325

 
57,350

 
58,313

 
55,187

 
52,010

 
48,784

 
15.99

 
117,675

 
100,794

 
16.75

Data processing
 
4,698

 
4,906

 
5,169

 
4,614

 
4,600

 
4,244

 
2.13

 
9,604

 
8,844

 
8.59

Occupancy and equipment
 
11,544

 
11,835

 
11,816

 
10,668

 
9,805

 
9,822

 
17.74

 
23,379

 
19,627

 
19.12

Other real estate
 
252

 
1,004

 
725

 
278

 
232

 
657

 
8.62

 
1,256

 
889

 
41.28

Amortization of intangibles
 
2,053

 
2,110

 
2,169

 
1,765

 
1,594

 
1,651

 
28.80

 
4,163

 
3,245

 
28.29

Merger and conversion related expenses
 
179

 

 
1,625

 
11,221

 
500

 
900

 
(64.20
)
 
179

 
1,400

 
(87.21
)
Other
 
14,239

 
11,627

 
13,496

 
11,013

 
10,285

 
11,886

 
38.44

 
25,866

 
22,171

 
16.67

 
Total noninterest expense
 
93,290

 
88,832

 
93,313

 
94,746

 
79,026

 
77,944

 
18.05

 
182,122

 
156,970

 
16.02

Income before income taxes
 
60,570

 
58,700

 
57,518

 
40,496

 
47,134

 
43,499

 
28.51

 
119,270

 
90,633

 
31.60

Income taxes
 
13,945

 
13,590

 
13,098

 
8,532

 
10,424

 
9,673

 
33.78

 
27,535

 
20,097

 
37.01

 
Net income
 
$
46,625

 
$
45,110

 
$
44,420

 
$
31,964

 
$
36,710

 
$
33,826

 
27.01

 
$
91,735

 
$
70,536

 
30.05

Basic earnings per share
 
$
0.80

 
$
0.77

 
$
0.76

 
$
0.61

 
$
0.74

 
$
0.69

 
8.11

 
$
1.57

 
$
1.43

 
9.79

Diluted earnings per share
 
0.80

 
0.77

 
0.76

 
0.61

 
0.74

 
0.68

 
8.11

 
1.56

 
1.42

 
9.86

Average basic shares outstanding
 
58,461,024

 
58,585,517

 
58,623,646

 
52,472,971

 
49,413,754

 
49,356,417

 
18.31

 
58,523,007

 
49,385,244

 
18.50

Average diluted shares outstanding
 
58,618,976

 
58,730,535

 
58,767,519

 
52,609,902

 
49,549,761

 
49,502,950

 
18.30

 
58,669,056

 
49,522,045

 
18.47

Common shares outstanding
 
58,297,670

 
58,633,630

 
58,546,480

 
58,743,814

 
49,424,339

 
49,392,978

 
17.95

 
58,297,670

 
49,424,339

 
17.95

Cash dividend per common share
 
$
0.22

 
$
0.21

 
$
0.21

 
$
0.20

 
$
0.20

 
$
0.19

 
10.00

 
$
0.43

 
$
0.39

 
10.26

Performance ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on avg shareholders' equity
 
8.90
%
 
8.86
%
 
8.72
%
 
7.40
%
 
9.55
%
 
9.00
%
 
 
 
8.88
%
 
9.28
%
 
 
Return on avg tangible s/h's equity (1)
 
17.15
%
 
17.41
%
 
17.44
%
 
13.65
%
 
16.75
%
 
16.02
%
 
 
 
17.28
%
 
16.39
%
 
 
Return on avg assets
 
1.47
%
 
1.44
%
 
1.39
%
 
1.12
%
 
1.42
%
 
1.36
%
 
 
 
1.45
%
 
1.40
%
 
 
Return on avg tangible assets (2)
 
1.64
%
 
1.61
%
 
1.56
%
 
1.26
%
 
1.57
%
 
1.51
%
 
 
 
1.63
%
 
1.54
%
 
 
Net interest margin (FTE)
 
4.19
%
 
4.27
%
 
4.24
%
 
4.07
%
 
4.15
%
 
4.20
%
 
 
 
4.23
%
 
4.18
%
 
 
Yield on earning assets (FTE)
 
5.11
%
 
5.16
%
 
5.02
%
 
4.81
%
 
4.78
%
 
4.72
%
 
 
 
5.13
%
 
4.75
%
 
 
Cost of funding
 
0.96
%
 
0.92
%
 
0.81
%
 
0.77
%
 
0.65
%
 
0.53
%
 
 
 
0.94
%
 
0.60
%
 
 
Average earning assets to average assets
 
85.72
%
 
85.58
%
 
86.15
%
 
87.29
%
 
87.67
%
 
87.12
%
 
 
 
85.65
%
 
87.39
%
 
 
Average loans to average deposits
 
89.13
%
 
89.33
%
 
89.77
%
 
91.74
%
 
91.84
%
 
94.04
%
 
 
 
89.23
%
 
92.91
%
 
 
Noninterest income (less securities gains/
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
losses) to average assets
 
1.32
%
 
1.14
%
 
1.14
%
 
1.34
%
 
1.38
%
 
1.37
%
 
 
 
1.23
%
 
1.38
%
 
 
Noninterest expense (less debt prepayment penalties/
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
penalties/merger-related expenses) to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
average assets
 
2.93
%
 
2.83
%
 
2.86
%
 
2.94
%
 
3.05
%
 
3.11
%
 
 
 
2.88
%
 
3.08
%
 
 
Net overhead ratio
 
1.61
%
 
1.69
%
 
1.72
%
 
1.60
%
 
1.67
%
 
1.74
%
 
 
 
1.65
%
 
1.70
%
 
 
Efficiency ratio (FTE) (4)
 
58.30
%
 
57.62
%
 
58.39
%
 
58.84
%
 
59.46
%
 
60.43
%
 
 
 
57.97
%
 
59.94
%
 
 

10



RENASANT CORPORATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2019 -
 
For The Six Months Ending
 
 
 
 
 
2019
 
2018
 
Q2 2018
 
June 30,
 
 
 
 
 
Second
 
First
 
Fourth
 
Third
 
Second
 
First
 
Percent
 
 
 
 
 
Percent
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Variance
 
2019
 
2018
 
Variance
Average Balances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
12,764,669

 
$
12,730,939

 
$
12,713,000

 
$
11,276,587

 
$
10,341,863

 
$
10,055,755

 
23.43
 %
 
$
12,747,897

 
$
10,199,599

 
24.98
 %
Earning assets
 
10,942,492

 
10,895,205

 
10,952,023

 
9,843,870

 
9,067,016

 
8,760,679

 
20.68

 
10,918,979

 
8,914,694

 
22.48

Securities
 
1,262,271

 
1,253,224

 
1,240,283

 
1,129,010

 
1,039,947

 
833,076

 
21.38

 
1,257,772

 
937,083

 
34.22

Loans held for sale
 
353,103

 
345,264

 
418,213

 
297,692

 
209,652

 
152,299

 
68.42

 
349,205

 
181,134

 
92.79

Loans, net of unearned
 
9,043,788

 
9,059,802

 
9,130,273

 
8,228,053

 
7,704,221

 
7,646,991

 
17.39

 
9,051,751

 
7,675,764

 
17.93

Intangibles
 
974,628

 
976,820

 
972,736

 
743,567

 
633,155

 
634,898

 
53.93

 
975,718

 
634,022

 
53.89

Noninterest-bearing deposits
 
2,395,899

 
2,342,406

 
2,402,422

 
2,052,226

 
1,867,925

 
1,817,848

 
28.27

 
2,369,300

 
1,843,025

 
28.55

Interest-bearing deposits
 
7,750,986

 
7,799,892

 
7,768,724

 
6,916,699

 
6,521,123

 
6,314,114

 
18.86

 
7,775,304

 
6,418,190

 
21.14

Total deposits
 
10,146,885

 
10,142,298

 
10,171,146

 
8,968,925

 
8,389,048

 
8,131,962

 
20.95

 
10,144,604

 
8,261,215

 
22.80

Borrowed funds
 
354,234

 
363,140

 
407,496

 
499,054

 
329,287

 
314,228

 
7.58

 
358,662

 
321,799

 
11.46

Shareholders' equity
 
2,102,093

 
2,065,370

 
2,021,075

 
1,712,757

 
1,542,071

 
1,523,873

 
36.32

 
2,083,833

 
1,533,022

 
35.93

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2019 -
 
As of
 
 
2019
 
2018
 
Q4 2018
 
June 30,
 
 
Second
 
First
 
Fourth
 
Third
 
Second
 
First
 
Percent
 
 
 
 
 
Percent
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Variance
 
2019
 
2018
 
Variance
Balances at period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
12,892,653

 
$
12,862,395

 
$
12,934,878

 
$
12,746,939

 
$
10,544,475

 
$
10,238,313

 
(0.33
)%
 
$
12,892,653

 
$
10,544,475

 
22.27
 %
Earning assets
 
11,064,957

 
11,015,535

 
11,115,929

 
10,962,958

 
9,239,200

 
8,938,117

 
(0.46
)
 
11,064,957

 
9,239,200

 
19.76

Securities
 
1,268,280

 
1,255,353

 
1,250,777

 
1,177,606

 
1,088,779

 
948,365

 
1.40

 
1,268,280

 
1,088,779

 
16.49

Loans held for sale
 
461,681

 
318,563

 
411,427

 
463,287

 
245,046

 
204,472

 
12.21

 
461,681

 
245,046

 
88.41

Non purchased loans
 
6,704,288

 
6,565,599

 
6,389,712

 
6,210,238

 
6,057,766

 
5,830,122

 
4.92

 
6,704,288

 
6,057,766

 
10.67

Purchased loans
 
2,350,366

 
2,522,694

 
2,693,417

 
2,912,669

 
1,709,891

 
1,867,948

 
(12.74
)
 
2,350,366

 
1,709,891

 
37.46

 
Total loans
 
9,054,654

 
9,088,293

 
9,083,129

 
9,122,907

 
7,767,657

 
7,698,070

 
(0.31
)
 
9,054,654

 
7,767,657

 
16.57

Intangibles
 
973,673

 
975,726

 
977,793

 
974,115

 
632,311

 
633,905

 
(0.42
)
 
973,673

 
632,311

 
53.99

Noninterest-bearing deposits
 
2,408,984

 
2,366,223

 
2,318,706

 
2,359,859

 
1,888,561

 
1,861,136

 
3.89

 
2,408,984

 
1,888,561

 
27.56

Interest-bearing deposits
 
7,781,077

 
7,902,689

 
7,809,851

 
7,812,089

 
6,492,159

 
6,496,633

 
(0.37
)
 
7,781,077

 
6,492,159

 
19.85

 
Total deposits
 
10,190,061

 
10,268,912

 
10,128,557

 
10,171,948

 
8,380,720

 
8,357,769

 
0.61

 
10,190,061

 
8,380,720

 
21.59

Borrowed funds
 
401,934

 
350,859

 
651,324

 
439,516

 
520,747

 
265,191

 
(38.29
)
 
401,934

 
520,747

 
(22.82
)
Shareholders' equity
 
2,119,696

 
2,088,877

 
2,043,913

 
2,010,711

 
1,558,668

 
1,532,765

 
3.71

 
2,119,696

 
1,558,668

 
35.99

Market value per common share
 
35.94

 
33.85

 
30.18

 
41.21

 
45.52

 
42.56

 
19.09

 
35.94

 
45.52

 
(21.05
)
Book value per common share
 
36.36

 
35.63

 
34.91

 
34.23

 
31.54

 
31.03

 
4.15

 
36.36

 
31.54

 
15.28

Tangible book value per common share
 
19.66

 
18.98

 
18.21

 
17.65

 
18.74

 
18.20

 
7.96

 
19.66

 
18.74

 
4.91

Shareholders' equity to assets (actual)
 
16.44
%
 
16.24
%
 
15.80
%
 
15.77
%
 
14.78
%
 
14.97
%
 
 
 
16.44
%
 
14.78
%
 
 
Tangible capital ratio (3)
 
9.62
%
 
9.36
%
 
8.92
%
 
8.80
%
 
9.35
%
 
9.36
%
 
 
 
9.62
%
 
9.35
%
 
 
Leverage ratio
 
10.65
%
 
10.44
%
 
10.11
%
 
9.85
%
 
10.63
%
 
10.61
%
 
 
 
10.65
%
 
10.63
%
 


Common equity tier 1 capital ratio
 
11.64
%
 
11.49
%
 
11.05
%
 
10.80
%
 
11.71
%
 
11.38
%
 
 
 
11.64
%
 
11.71
%
 


Tier 1 risk-based capital ratio
 
12.69
%
 
12.55
%
 
12.10
%
 
11.84
%
 
12.73
%
 
12.41
%
 
 
 
12.69
%
 
12.73
%
 


Total risk-based capital ratio
 
14.62
%
 
14.57
%
 
14.12
%
 
13.85
%
 
14.75
%
 
14.44
%
 
 
 
14.62
%
 
14.75
%
 



11



RENASANT CORPORATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2019 -
 
As of
 
 
 
 
 
2019
 
2018
 
Q4 2018
 
June 30,
 
 
 
 
 
Second
 
First
 
Fourth
 
Third
 
Second
 
First
 
Percent
 
 
 
 
 
Percent
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Variance
 
2019
 
2018
 
Variance
Non purchased loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
 
$
930,598

 
$
921,081
 
$
875,649

 
$
817,799

 
$
790,363

 
$
803,146

 
6.28
 %
 
$
930,598

 
$
790,363

 
17.74
 %
Lease Financing
 
59,158

 
58,651
 
61,865

 
54,272

 
52,423

 
52,536

 
(4.38
)
 
59,158

 
52,423

 
12.85

Real estate- construction
 
716,129

 
651,119
 
635,519

 
624,892

 
642,380

 
582,430

 
12.68

 
716,129

 
642,380

 
11.48

Real estate - 1-4 family mortgages
 
2,160,617

 
2,114,908
 
2,087,890

 
2,000,770

 
1,912,450

 
1,785,271

 
3.48

 
2,160,617

 
1,912,450

 
12.98

Real estate - commercial mortgages
 
2,741,402

 
2,726,186
 
2,628,365

 
2,609,510

 
2,554,955

 
2,503,680

 
4.30

 
2,741,402

 
2,554,955

 
7.30

Installment loans to individuals
 
96,384

 
93,654
 
100,424

 
102,995

 
105,195

 
103,059

 
(4.02
)
 
96,384

 
105,195

 
(8.38
)
Loans, net of unearned
 
$
6,704,288

 
$
6,565,599
 
$
6,389,712

 
$
6,210,238

 
$
6,057,766

 
$
5,830,122

 
4.92

 
$
6,704,288

 
$
6,057,766

 
10.67

Purchased loans
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
Commercial, financial, agricultural
 
$
374,478

 
$
387,376
 
$
420,263

 
$
495,545

 
$
197,455

 
$
243,672

 
(10.89
)
 
$
374,478

 
$
197,455

 
89.65

Lease Financing
 

 
 

 

 

 

 

 

 

 

Real estate- construction
 
65,402

 
89,954
 
105,149

 
112,093

 
70,438

 
75,061

 
(37.80
)
 
65,402

 
70,438

 
(7.15
)
Real estate - 1-4 family mortgages
 
604,855

 
654,265
 
707,453

 
761,913

 
520,649

 
572,830

 
(14.50
)
 
604,855

 
520,649

 
16.17

Real estate - commercial mortgages
 
1,276,567

 
1,357,446
 
1,423,144

 
1,503,075

 
906,219

 
960,273

 
(10.30
)
 
1,276,567

 
906,219

 
40.87

Installment loans to individuals
 
29,064

 
33,653
 
37,408

 
40,043

 
15,130

 
16,112

 
(22.31
)
 
29,064

 
15,130

 
92.10

Loans, net of unearned
 
$
2,350,366

 
$
2,522,694
 
$
2,693,417

 
$
2,912,669

 
$
1,709,891

 
$
1,867,948

 
(12.74
)
 
$
2,350,366

 
$
1,709,891

 
37.46

Asset quality data
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
Non purchased assets
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
Nonaccrual loans
 
$
14,268

 
$
12,507
 
$
10,218

 
$
9,696

 
$
8,921

 
$
9,403

 
39.64

 
$
14,268

 
$
8,921

 
59.94

Loans 90 past due or more
 
4,175

 
1,192
 
2,685

 
3,806

 
2,190

 
3,605

 
55.49

 
4,175

 
2,190