Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced
earnings results for the second quarter of 2023.
(Dollars in thousands, except
earnings per share) |
Three Months Ended |
|
Six Months Ended |
|
Jun 30, 2023 |
Mar 31, 2023 |
Jun 30, 2022 |
|
Jun 30, 2023 |
Jun 30, 2022 |
Net income and
earnings per share: |
|
|
|
|
|
|
Net income |
$28,643 |
|
$46,078 |
$39,678 |
|
$74,721 |
|
$73,225 |
After-tax loss on sale of securities |
(18,085 |
) |
— |
— |
|
(17,870 |
) |
— |
Basic EPS |
0.51 |
|
0.82 |
0.71 |
|
1.33 |
|
1.31 |
Diluted EPS |
0.51 |
|
0.82 |
0.71 |
|
1.33 |
|
1.30 |
Impact to diluted EPS from loss on sale of securities |
0.32 |
|
— |
— |
|
0.31 |
|
— |
Adjusted diluted EPS (Non-GAAP)(1) |
0.83 |
|
0.82 |
0.72 |
|
1.64 |
|
1.32 |
“We are pleased with our second quarter results
in light of the challenging interest rate environment. In the
quarter we continued to take steps to add strength and optionality
to our balance sheet and benefit earnings,” remarked C. Mitchell
Waycaster, Chief Executive Officer of the Company. “The Company’s
focus remains on core funding and maintaining a diverse and
granular loan portfolio.”
Quarterly Highlights
Earnings
- Net income for the second quarter
of 2023 was $28.6 million with diluted EPS of $0.51
- Net interest income (fully tax
equivalent) for the second quarter of 2023 was $133.1 million, down
$5.4 million on a linked quarter basis
- For the second quarter of 2023, net
interest margin was 3.45%, down 21 basis points on a linked quarter
basis
- Cost of total deposits was 150
basis points for the second quarter of 2023, up 51 basis points on
a linked quarter basis
- Noninterest income decreased $20.1
million on a linked quarter basis primarily due to losses of $22.4
million on securities sales, as detailed below. The Company’s
wealth management and insurance lines of business produced solid
results during the second quarter of 2023
- The mortgage division generated
$0.6 billion in interest rate lock volume in the second quarter of
2023. Gain on sale margin was 1.66% for the second quarter of 2023,
up 51 basis points on a linked quarter basis
- Noninterest expense increased $1.5
million during the second quarter of 2023. Annual merit increases
contributed to the increase
Balance Sheet
- Loans increased $164.1 million on a
linked quarter basis, which represents 5.6% annualized net loan
growth
- The securities portfolio decreased
$584.2 million on a linked quarter basis, primarily due to the sale
of available-for-sale securities, which generated $489 million in
proceeds. The Company recognized a pre-tax loss of $22.4 million
and used the sale proceeds to pay down FHLB borrowings
- Deposits at June 30, 2023
increased $183.3 million on a linked quarter basis, driven by an
increase in brokered deposits of $224 million. Brokered deposits
were $1.1 billion at June 30, 2023. Noninterest bearing
deposits decreased $365.9 million on a linked quarter basis and
represented 27.5% of total deposits at June 30, 2023
Capital and Liquidity
- Book value per share and tangible
book value per share (non-GAAP)(1) increased 0.9% and 1.8%,
respectively, on a linked quarter basis
- The Company has a $100 million
stock repurchase program that is in effect through October 2023;
there was no buyback activity during the second quarter of
2023
Credit Quality
- The Company recorded a provision
for credit losses on loans of $3.0 million and a recovery of credit
losses on unfunded commitments (included in noninterest expense) of
$1.0 million for the second quarter of 2023
- The ratio of allowance for credit
losses on loans to total loans was relatively stable at 1.63% at
June 30, 2023
- The coverage ratio, or the
allowance for credit losses on loans to nonperforming loans, was
211.85% at June 30, 2023, compared to 259.39% at
March 31, 2023
- Net loan charge-offs for the second
quarter of 2023 were $3.9 million, or 0.13% of average loans on an
annualized basis
- Loans 30-89 days past due to total
loans decreased 33 basis points on a linked quarter basis to 0.10%.
Nonperforming loans to total loans increased to 0.77% at
June 30, 2023 compared to 0.64% at March 31, 2023 and
criticized loans (which include classified and special mention
loans) to total loans decreased to 2.32% at June 30, 2023,
compared to 2.44% at March 31, 2023
(1) This is a non-GAAP financial measure. 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.
Income Statement
(Dollars in thousands, except
per share data) |
Three Months Ended |
|
Six Months Ended |
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
|
Jun 30, 2023 |
Jun 30, 2022 |
Interest
income |
|
|
|
|
|
|
|
|
Loans held for investment |
$ |
173,198 |
$ |
161,787 |
$ |
145,360 |
$ |
123,100 |
$ |
106,409 |
|
$ |
334,985 |
$ |
202,238 |
Loans held for sale |
|
2,990 |
|
1,737 |
|
1,688 |
|
2,075 |
|
2,586 |
|
|
4,727 |
|
5,449 |
Securities |
|
14,000 |
|
15,091 |
|
15,241 |
|
14,500 |
|
12,471 |
|
|
29,091 |
|
23,306 |
Other |
|
6,978 |
|
5,430 |
|
2,777 |
|
3,458 |
|
1,954 |
|
|
12,408 |
|
2,618 |
Total interest
income |
|
197,166 |
|
184,045 |
|
165,066 |
|
143,133 |
|
123,420 |
|
|
381,211 |
|
233,611 |
Interest
expense |
|
|
|
|
|
|
|
|
Deposits |
|
51,391 |
|
32,866 |
|
17,312 |
|
7,241 |
|
5,018 |
|
|
84,257 |
|
10,655 |
Borrowings |
|
15,559 |
|
15,404 |
|
9,918 |
|
5,574 |
|
4,887 |
|
|
30,963 |
|
9,812 |
Total interest
expense |
|
66,950 |
|
48,270 |
|
27,230 |
|
12,815 |
|
9,905 |
|
|
115,220 |
|
20,467 |
Net interest
income |
|
130,216 |
|
135,775 |
|
137,836 |
|
130,318 |
|
113,515 |
|
|
265,991 |
|
213,144 |
Provision for loan losses |
|
3,000 |
|
7,960 |
|
10,488 |
|
9,800 |
|
2,000 |
|
|
10,960 |
|
3,500 |
Net interest income
after provision for credit losses |
|
127,216 |
|
127,815 |
|
127,348 |
|
120,518 |
|
111,515 |
|
|
255,031 |
|
209,644 |
Noninterest
income |
|
17,226 |
|
37,293 |
|
33,395 |
|
41,186 |
|
37,214 |
|
|
54,519 |
|
74,672 |
Noninterest
expense |
|
109,165 |
|
107,708 |
|
101,582 |
|
101,574 |
|
98,194 |
|
|
216,873 |
|
192,299 |
Income before income
taxes |
|
35,277 |
|
57,400 |
|
59,161 |
|
60,130 |
|
50,535 |
|
|
92,677 |
|
92,017 |
Income
taxes |
|
6,634 |
|
11,322 |
|
12,885 |
|
13,563 |
|
10,857 |
|
|
17,956 |
|
18,792 |
Net
income |
$ |
28,643 |
$ |
46,078 |
$ |
46,276 |
$ |
46,567 |
$ |
39,678 |
|
$ |
74,721 |
$ |
73,225 |
|
|
|
|
|
|
|
|
|
Adjusted net income
(non-GAAP)(1) |
$ |
46,728 |
$ |
46,078 |
$ |
50,324 |
$ |
44,233 |
$ |
40,601 |
|
$ |
92,591 |
$ |
74,329 |
Adjusted pre-provision net
revenue (“PPNR”) (non-GAAP)(1) |
$ |
59,715 |
$ |
63,860 |
$ |
72,187 |
$ |
66,970 |
$ |
54,172 |
|
$ |
123,575 |
$ |
96,836 |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.51 |
$ |
0.82 |
$ |
0.83 |
$ |
0.83 |
$ |
0.71 |
|
$ |
1.33 |
$ |
1.31 |
Diluted earnings per
share |
|
0.51 |
|
0.82 |
|
0.82 |
|
0.83 |
|
0.71 |
|
|
1.33 |
|
1.30 |
Adjusted diluted earnings per
share (non-GAAP)(1) |
|
0.83 |
|
0.82 |
|
0.89 |
|
0.79 |
|
0.72 |
|
|
1.64 |
|
1.32 |
Average basic shares
outstanding |
|
56,107,881 |
|
56,008,741 |
|
55,953,104 |
|
55,947,214 |
|
55,906,755 |
|
|
56,058,585 |
|
55,858,243 |
Average diluted shares
outstanding |
|
56,395,653 |
|
56,270,219 |
|
56,335,446 |
|
56,248,720 |
|
56,182,845 |
|
|
56,330,295 |
|
56,130,762 |
Cash dividends per common
share |
$ |
0.22 |
$ |
0.22 |
$ |
0.22 |
$ |
0.22 |
$ |
0.22 |
|
$ |
0.44 |
$ |
0.44 |
(1) This is a non-GAAP financial measure. 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.
Performance Ratios
|
Three Months Ended |
|
Six Months Ended |
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
|
Jun 30, 2023 |
Jun 30, 2022 |
Return on average assets |
0.66 |
% |
1.09 |
% |
1.11 |
% |
1.11 |
% |
0.96 |
% |
|
0.87 |
% |
0.89 |
% |
Adjusted return on average
assets (non-GAAP)(1) |
1.08 |
|
1.09 |
|
1.20 |
|
1.05 |
|
0.98 |
|
|
1.08 |
|
0.90 |
|
Return on average tangible
assets (non-GAAP)(1) |
0.73 |
|
1.19 |
|
1.20 |
|
1.20 |
|
1.04 |
|
|
0.96 |
|
0.97 |
|
Adjusted return on average
tangible assets (non-GAAP)(1) |
1.18 |
|
1.19 |
|
1.30 |
|
1.14 |
|
1.07 |
|
|
1.18 |
|
0.98 |
|
Return on average equity |
5.18 |
|
8.55 |
|
8.58 |
|
8.50 |
|
7.31 |
|
|
6.84 |
|
6.67 |
|
Adjusted return on average
equity (non-GAAP)(1) |
8.45 |
|
8.55 |
|
9.33 |
|
8.07 |
|
7.48 |
|
|
8.48 |
|
6.77 |
|
Return on average tangible
equity (non-GAAP)(1) |
9.91 |
|
16.29 |
|
15.98 |
|
15.64 |
|
13.50 |
|
|
13.04 |
|
12.18 |
|
Adjusted return on average
tangible equity (non-GAAP)(1) |
15.94 |
|
16.29 |
|
17.35 |
|
14.87 |
|
13.81 |
|
|
16.07 |
|
12.36 |
|
Efficiency ratio (fully
taxable equivalent) |
72.63 |
|
61.26 |
|
58.39 |
|
58.50 |
|
64.37 |
|
|
66.50 |
|
66.00 |
|
Adjusted efficiency ratio
(non-GAAP)(1) |
62.98 |
|
61.30 |
|
56.25 |
|
58.78 |
|
62.44 |
|
|
62.13 |
|
64.63 |
|
Dividend payout ratio |
43.14 |
|
26.83 |
|
26.51 |
|
26.51 |
|
30.99 |
|
|
33.08 |
|
33.59 |
|
Capital and Balance Sheet Ratios
|
As of |
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
Shares outstanding |
|
56,132,478 |
|
|
56,073,658 |
|
|
55,953,104 |
|
|
55,953,104 |
|
|
55,932,017 |
|
Market value per share |
$ |
26.13 |
|
$ |
30.58 |
|
$ |
37.59 |
|
$ |
31.28 |
|
$ |
28.81 |
|
Book value per share |
|
39.35 |
|
|
39.01 |
|
|
38.18 |
|
|
37.39 |
|
|
37.85 |
|
Tangible book value per share (non-GAAP)(1) |
|
21.30 |
|
|
20.92 |
|
|
20.02 |
|
|
20.12 |
|
|
20.55 |
|
Shareholders’ equity to assets |
|
12.82 |
% |
|
12.52 |
% |
|
12.57 |
% |
|
12.70 |
% |
|
12.74 |
% |
Tangible common equity ratio (non-GAAP)(1) |
|
7.37 |
|
|
7.13 |
|
|
7.01 |
|
|
7.26 |
|
|
7.34 |
|
Leverage ratio |
|
9.22 |
|
|
9.18 |
|
|
9.36 |
|
|
9.39 |
|
|
9.16 |
|
Common equity tier 1 capital ratio |
|
10.30 |
|
|
10.19 |
|
|
10.21 |
|
|
10.64 |
|
|
10.74 |
|
Tier 1 risk-based capital ratio |
|
11.09 |
|
|
10.98 |
|
|
11.01 |
|
|
11.47 |
|
|
11.60 |
|
Total risk-based capital ratio |
|
14.76 |
|
|
14.68 |
|
|
14.63 |
|
|
15.15 |
|
|
15.34 |
|
(1) This is a non-GAAP financial measure. 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.
Noninterest Income and Noninterest Expense
(Dollars in thousands) |
Three Months Ended |
|
Six Months Ended |
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
|
Jun 30, 2023 |
Jun 30, 2022 |
Noninterest
income |
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
$ |
9,733 |
|
$ |
9,120 |
$ |
10,445 |
|
$ |
10,216 |
$ |
9,734 |
|
|
$ |
18,853 |
|
$ |
19,296 |
|
Fees and commissions |
|
4,987 |
|
|
4,676 |
|
4,470 |
|
|
4,148 |
|
4,668 |
|
|
|
9,663 |
|
|
8,650 |
|
Insurance commissions |
|
2,809 |
|
|
2,446 |
|
2,501 |
|
|
3,108 |
|
2,591 |
|
|
|
5,255 |
|
|
5,145 |
|
Wealth management revenue |
|
5,338 |
|
|
5,140 |
|
5,237 |
|
|
5,467 |
|
5,711 |
|
|
|
10,478 |
|
|
11,635 |
|
Mortgage banking income |
|
9,771 |
|
|
8,517 |
|
5,170 |
|
|
12,675 |
|
8,316 |
|
|
|
18,288 |
|
|
17,949 |
|
Net losses on sales of securities |
|
(22,438 |
) |
|
— |
|
— |
|
|
— |
|
— |
|
|
|
(22,438 |
) |
|
— |
|
BOLI income |
|
2,402 |
|
|
3,003 |
|
2,487 |
|
|
2,296 |
|
2,331 |
|
|
|
5,405 |
|
|
4,484 |
|
Other |
|
4,624 |
|
|
4,391 |
|
3,085 |
|
|
3,276 |
|
3,863 |
|
|
|
9,015 |
|
|
7,513 |
|
Total noninterest
income |
$ |
17,226 |
|
$ |
37,293 |
$ |
33,395 |
|
$ |
41,186 |
$ |
37,214 |
|
|
$ |
54,519 |
|
$ |
74,672 |
|
Noninterest
expense |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
70,637 |
|
$ |
69,832 |
$ |
67,372 |
|
$ |
66,463 |
$ |
65,580 |
|
|
$ |
140,469 |
|
$ |
127,819 |
|
Data processing |
|
3,684 |
|
|
3,633 |
|
3,521 |
|
|
3,526 |
|
3,590 |
|
|
|
7,317 |
|
|
7,853 |
|
Net occupancy and equipment |
|
11,865 |
|
|
11,405 |
|
11,122 |
|
|
11,266 |
|
11,155 |
|
|
|
23,270 |
|
|
22,431 |
|
Other real estate owned |
|
51 |
|
|
30 |
|
(59 |
) |
|
34 |
|
(187 |
) |
|
|
81 |
|
|
(428 |
) |
Professional fees |
|
4,012 |
|
|
3,467 |
|
2,856 |
|
|
3,087 |
|
2,778 |
|
|
|
7,479 |
|
|
5,929 |
|
Advertising and public relations |
|
3,482 |
|
|
4,686 |
|
3,631 |
|
|
3,229 |
|
3,406 |
|
|
|
8,168 |
|
|
7,465 |
|
Intangible amortization |
|
1,369 |
|
|
1,426 |
|
1,195 |
|
|
1,251 |
|
1,310 |
|
|
|
2,795 |
|
|
2,676 |
|
Communications |
|
2,226 |
|
|
1,980 |
|
2,028 |
|
|
1,999 |
|
1,904 |
|
|
|
4,206 |
|
|
3,931 |
|
Merger and conversion related expenses |
|
— |
|
|
— |
|
1,100 |
|
|
— |
|
— |
|
|
|
— |
|
|
687 |
|
Restructuring charges |
|
— |
|
|
— |
|
— |
|
|
— |
|
1,187 |
|
|
|
— |
|
|
732 |
|
Other |
|
11,839 |
|
|
11,249 |
|
8,816 |
|
|
10,719 |
|
7,471 |
|
|
|
23,088 |
|
|
13,204 |
|
Total noninterest
expense |
$ |
109,165 |
|
$ |
107,708 |
$ |
101,582 |
|
$ |
101,574 |
$ |
98,194 |
|
|
$ |
216,873 |
|
$ |
192,299 |
|
Mortgage Banking Income
(Dollars in thousands) |
Three Months Ended |
|
Six Months Ended |
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
|
Jun 30, 2023 |
Jun 30, 2022 |
Gain on sales of loans, net |
$ |
4,646 |
$ |
4,770 |
$ |
1,003 |
$ |
5,263 |
$ |
3,490 |
|
$ |
9,416 |
$ |
9,537 |
Fees, net |
|
2,859 |
|
1,806 |
|
1,849 |
|
2,405 |
|
3,064 |
|
|
4,665 |
|
6,117 |
Mortgage servicing income, net |
|
2,266 |
|
1,941 |
|
2,318 |
|
5,007 |
|
1,762 |
|
|
4,207 |
|
2,295 |
Total mortgage banking
income |
$ |
9,771 |
$ |
8,517 |
$ |
5,170 |
$ |
12,675 |
$ |
8,316 |
|
$ |
18,288 |
$ |
17,949 |
Balance Sheet
(Dollars in thousands) |
As of |
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
946,899 |
|
$ |
847,697 |
|
$ |
575,992 |
|
$ |
479,500 |
|
$ |
1,010,468 |
|
Securities held to maturity, at amortized cost |
|
1,273,044 |
|
|
1,300,240 |
|
|
1,324,040 |
|
|
1,353,502 |
|
|
488,851 |
|
Securities available for sale, at fair value |
|
950,930 |
|
|
1,507,907 |
|
|
1,533,942 |
|
|
1,569,242 |
|
|
2,528,253 |
|
Loans held for sale, at fair value |
|
249,615 |
|
|
159,318 |
|
|
110,105 |
|
|
144,642 |
|
|
196,598 |
|
Loans held for investment |
|
11,930,516 |
|
|
11,766,425 |
|
|
11,578,304 |
|
|
11,105,004 |
|
|
10,603,744 |
|
Allowance for credit losses on loans |
|
(194,391 |
) |
|
(195,292 |
) |
|
(192,090 |
) |
|
(174,356 |
) |
|
(166,131 |
) |
Loans, net |
|
11,736,125 |
|
|
11,571,133 |
|
|
11,386,214 |
|
|
10,930,648 |
|
|
10,437,613 |
|
Premises and equipment, net |
|
285,952 |
|
|
287,006 |
|
|
283,595 |
|
|
284,062 |
|
|
284,035 |
|
Other real estate owned |
|
5,120 |
|
|
4,818 |
|
|
1,763 |
|
|
2,412 |
|
|
2,807 |
|
Goodwill and other intangibles |
|
1,013,046 |
|
|
1,014,415 |
|
|
1,015,884 |
|
|
966,461 |
|
|
967,713 |
|
Bank-owned life insurance |
|
377,649 |
|
|
375,572 |
|
|
373,808 |
|
|
371,650 |
|
|
371,298 |
|
Mortgage servicing rights |
|
87,432 |
|
|
85,039 |
|
|
84,448 |
|
|
81,980 |
|
|
94,743 |
|
Other assets |
|
298,530 |
|
|
320,938 |
|
|
298,385 |
|
|
287,000 |
|
|
235,722 |
|
Total assets |
$ |
17,224,342 |
|
$ |
17,474,083 |
|
$ |
16,988,176 |
|
$ |
16,471,099 |
|
$ |
16,618,101 |
|
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing |
$ |
3,878,953 |
|
$ |
4,244,877 |
|
$ |
4,558,756 |
|
$ |
4,827,220 |
|
$ |
4,741,397 |
|
Interest-bearing |
|
10,216,408 |
|
|
9,667,142 |
|
|
8,928,210 |
|
|
8,604,904 |
|
|
9,022,532 |
|
Total deposits |
|
14,095,361 |
|
|
13,912,019 |
|
|
13,486,966 |
|
|
13,432,124 |
|
|
13,763,929 |
|
Short-term borrowings |
|
257,305 |
|
|
732,057 |
|
|
712,232 |
|
|
312,818 |
|
|
112,642 |
|
Long-term debt |
|
429,630 |
|
|
431,111 |
|
|
428,133 |
|
|
426,821 |
|
|
431,553 |
|
Other liabilities |
|
233,418 |
|
|
211,596 |
|
|
224,829 |
|
|
207,055 |
|
|
193,100 |
|
Total liabilities |
|
15,015,714 |
|
|
15,286,783 |
|
|
14,852,160 |
|
|
14,378,818 |
|
|
14,501,224 |
|
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
Preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Common stock |
|
296,483 |
|
|
296,483 |
|
|
296,483 |
|
|
296,483 |
|
|
296,483 |
|
Treasury stock |
|
(105,589 |
) |
|
(107,559 |
) |
|
(111,577 |
) |
|
(111,577 |
) |
|
(112,295 |
) |
Additional paid-in capital |
|
1,301,883 |
|
|
1,299,458 |
|
|
1,302,422 |
|
|
1,299,476 |
|
|
1,298,207 |
|
Retained earnings |
|
907,312 |
|
|
891,242 |
|
|
857,725 |
|
|
823,951 |
|
|
789,880 |
|
Accumulated other comprehensive loss |
|
(191,461 |
) |
|
(192,324 |
) |
|
(209,037 |
) |
|
(216,052 |
) |
|
(155,398 |
) |
Total shareholders’
equity |
|
2,208,628 |
|
|
2,187,300 |
|
|
2,136,016 |
|
|
2,092,281 |
|
|
2,116,877 |
|
Total liabilities and
shareholders’ equity |
$ |
17,224,342 |
|
$ |
17,474,083 |
|
$ |
16,988,176 |
|
$ |
16,471,099 |
|
$ |
16,618,101 |
|
Net Interest Income and Net Interest Margin
(Dollars in thousands) |
Three Months Ended |
|
June 30, 2023 |
March 31, 2023 |
June 30, 2022 |
|
Average Balance |
Interest Income/ Expense |
Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Yield/ Rate |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
Loans held for investment |
$ |
11,877,592 |
$ |
175,549 |
5.93 |
% |
$ |
11,688,534 |
$ |
163,970 |
5.68 |
% |
$ |
10,477,036 |
$ |
107,612 |
4.12 |
% |
Loans held for sale |
|
192,539 |
|
2,990 |
6.21 |
% |
|
103,410 |
|
1,737 |
6.72 |
% |
|
227,435 |
|
2,586 |
4.55 |
% |
Taxable securities |
|
2,435,442 |
|
12,089 |
1.99 |
% |
|
2,588,148 |
|
13,054 |
2.02 |
% |
|
2,684,624 |
|
10,355 |
1.54 |
% |
Tax-exempt securities(1) |
|
413,680 |
|
2,429 |
2.35 |
% |
|
443,996 |
|
2,608 |
2.35 |
% |
|
451,878 |
|
2,719 |
2.41 |
% |
Total securities |
|
2,849,122 |
|
14,518 |
2.04 |
% |
|
3,032,144 |
|
15,662 |
2.07 |
% |
|
3,136,502 |
|
13,074 |
1.67 |
% |
Interest-bearing balances with
banks |
|
524,307 |
|
6,978 |
5.34 |
% |
|
464,229 |
|
5,430 |
4.74 |
% |
|
1,004,226 |
|
1,954 |
0.78 |
% |
Total interest-earning
assets |
|
15,443,560 |
|
200,035 |
5.19 |
% |
|
15,288,317 |
|
186,799 |
4.94 |
% |
|
14,845,199 |
|
125,226 |
3.38 |
% |
Cash and due from banks |
|
189,668 |
|
|
|
197,782 |
|
|
|
206,882 |
|
|
Intangible assets |
|
1,013,811 |
|
|
|
1,011,557 |
|
|
|
968,441 |
|
|
Other assets |
|
690,885 |
|
|
|
660,242 |
|
|
|
610,768 |
|
|
Total assets |
$ |
17,337,924 |
|
|
$ |
17,157,898 |
|
|
$ |
16,631,290 |
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
Interest-bearing demand(2) |
$ |
6,114,067 |
$ |
29,185 |
1.91 |
% |
$ |
6,066,770 |
$ |
20,298 |
1.36 |
% |
$ |
6,571,905 |
$ |
3,598 |
0.22 |
% |
Savings deposits |
|
1,004,096 |
|
813 |
0.32 |
% |
|
1,052,802 |
|
826 |
0.32 |
% |
|
1,137,607 |
|
147 |
0.05 |
% |
Brokered deposits |
|
810,087 |
|
10,090 |
5.00 |
% |
|
395,942 |
|
4,318 |
4.42 |
% |
|
— |
|
— |
— |
% |
Time deposits |
|
1,735,093 |
|
11,303 |
2.61 |
% |
|
1,564,658 |
|
7,424 |
1.92 |
% |
|
1,303,735 |
|
1,273 |
0.39 |
% |
Total interest-bearing
deposits |
|
9,663,343 |
|
51,391 |
2.13 |
% |
|
9,080,172 |
|
32,866 |
1.47 |
% |
|
9,013,247 |
|
5,018 |
0.22 |
% |
Borrowed funds |
|
1,204,968 |
|
15,559 |
5.18 |
% |
|
1,281,552 |
|
15,404 |
4.86 |
% |
|
543,728 |
|
4,887 |
3.60 |
% |
Total interest-bearing
liabilities |
|
10,868,311 |
|
66,950 |
2.47 |
% |
|
10,361,724 |
|
48,270 |
1.89 |
% |
|
9,556,975 |
|
9,905 |
0.42 |
% |
Noninterest-bearing deposits |
|
4,039,087 |
|
|
|
4,386,998 |
|
|
|
4,714,161 |
|
|
Other liabilities |
|
212,818 |
|
|
|
222,382 |
|
|
|
182,617 |
|
|
Shareholders’ equity |
|
2,217,708 |
|
|
|
2,186,794 |
|
|
|
2,177,537 |
|
|
Total liabilities and
shareholders’ equity |
$ |
17,337,924 |
|
|
$ |
17,157,898 |
|
|
$ |
16,631,290 |
|
|
Net interest income/ net interest
margin |
|
$ |
133,085 |
3.45 |
% |
|
$ |
138,529 |
3.66 |
% |
|
$ |
115,321 |
3.11 |
% |
Cost of funding |
|
|
1.80 |
% |
|
|
1.33 |
% |
|
|
0.28 |
% |
Cost of total deposits |
|
|
1.50 |
% |
|
|
0.99 |
% |
|
|
0.15 |
% |
(1) U.S. Government and some U.S. Government Agency securities
are tax-exempt in the states in which the Company operates.(2)
Interest-bearing demand deposits include interest-bearing
transactional accounts and money market deposits.
Net Interest Income and Net Interest
Margin, continued
(Dollars in thousands) |
Six Months Ended |
|
June 30, 2023 |
June 30, 2022 |
|
Average Balance |
Interest Income/ Expense |
Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Yield/ Rate |
Interest-earning assets: |
|
|
|
|
|
|
Loans held for investment |
$ |
11,783,585 |
$ |
339,519 |
5.81 |
% |
$ |
10,293,949 |
$ |
204,613 |
4.00 |
% |
Loans held for sale |
|
148,221 |
|
4,727 |
6.38 |
% |
|
278,722 |
|
5,449 |
3.91 |
% |
Taxable securities(1) |
|
2,511,373 |
|
25,143 |
2.00 |
% |
|
2,592,645 |
|
19,137 |
1.48 |
% |
Tax-exempt securities |
|
428,754 |
|
5,037 |
2.35 |
% |
|
445,154 |
|
5,354 |
2.41 |
% |
Total securities |
|
2,940,127 |
|
30,180 |
2.05 |
% |
|
3,037,799 |
|
24,491 |
1.61 |
% |
Interest-bearing balances with
banks |
|
494,434 |
|
12,408 |
5.06 |
% |
|
1,233,241 |
|
2,618 |
0.43 |
% |
Total interest-earning
assets |
|
15,366,367 |
|
386,834 |
5.07 |
% |
|
14,843,711 |
|
237,171 |
3.21 |
% |
Cash and due from banks |
|
193,703 |
|
|
|
206,559 |
|
|
Intangible assets |
|
1,012,690 |
|
|
|
966,956 |
|
|
Other assets |
|
675,648 |
|
|
|
647,254 |
|
|
Total assets |
$ |
17,248,408 |
|
|
$ |
16,664,480 |
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
Interest-bearing demand(2) |
$ |
6,090,549 |
$ |
49,483 |
1.64 |
% |
$ |
6,603,986 |
$ |
7,245 |
0.22 |
% |
Savings deposits |
|
1,028,315 |
|
1,639 |
0.32 |
% |
|
1,117,724 |
|
286 |
0.05 |
% |
Brokered deposits |
|
604,158 |
|
14,408 |
4.81 |
% |
|
— |
|
— |
— |
% |
Time deposits |
|
1,650,347 |
|
18,727 |
2.29 |
% |
|
1,339,022 |
|
3,124 |
0.47 |
% |
Total interest-bearing
deposits |
|
9,373,369 |
|
84,257 |
1.81 |
% |
|
9,060,732 |
|
10,655 |
0.24 |
% |
Borrowed funds |
|
1,243,049 |
|
30,963 |
5.01 |
% |
|
514,940 |
|
9,812 |
3.82 |
% |
Total interest-bearing
liabilities |
|
10,616,418 |
|
115,220 |
2.19 |
% |
|
9,575,672 |
|
20,467 |
0.43 |
% |
Noninterest-bearing deposits |
|
4,212,081 |
|
|
|
4,683,446 |
|
|
Other liabilities |
|
217,573 |
|
|
|
191,938 |
|
|
Shareholders’ equity |
|
2,202,336 |
|
|
|
2,213,424 |
|
|
Total liabilities and
shareholders’ equity |
$ |
17,248,408 |
|
|
$ |
16,664,480 |
|
|
Net interest income/ net interest
margin |
|
$ |
271,614 |
3.56 |
% |
|
$ |
216,704 |
2.94 |
% |
Cost of funding |
|
|
1.57 |
% |
|
|
0.29 |
% |
Cost of total deposits |
|
|
1.25 |
% |
|
|
0.16 |
% |
(1) U.S. Government and some U.S. Government Agency securities
are tax-exempt in the states in which the Company operates.(2)
Interest-bearing demand deposits include interest-bearing
transactional accounts and money market deposits.
Supplemental Margin Information
(Dollars in thousands) |
Three Months Ended |
|
Six Months Ended |
|
Jun 30, 2023 |
Mar 31, 2023 |
Jun 30, 2022 |
|
Jun 30, 2023 |
Jun 30, 2022 |
Earning asset
mix: |
|
|
|
|
|
|
Loans held for investment |
|
76.91 |
% |
|
76.45 |
% |
|
70.57 |
% |
|
|
76.68 |
% |
|
69.35 |
% |
Loans held for sale |
|
1.25 |
|
|
0.68 |
|
|
1.53 |
|
|
|
0.96 |
|
|
1.88 |
|
Securities |
|
18.45 |
|
|
19.83 |
|
|
21.13 |
|
|
|
19.13 |
|
|
20.47 |
|
Interest-bearing balances with banks |
|
3.39 |
|
|
3.04 |
|
|
6.77 |
|
|
|
3.23 |
|
|
8.30 |
|
Total |
|
100.00 |
% |
|
100.00 |
% |
|
100.00 |
% |
|
|
100.00 |
% |
|
100.00 |
% |
|
|
|
|
|
|
|
Funding sources
mix: |
|
|
|
|
|
|
Noninterest-bearing demand |
|
27.09 |
% |
|
29.74 |
% |
|
33.03 |
% |
|
|
28.41 |
% |
|
32.85 |
% |
Interest-bearing demand |
|
41.01 |
|
|
41.13 |
|
|
46.05 |
|
|
|
41.07 |
|
|
46.31 |
|
Savings |
|
6.74 |
|
|
7.14 |
|
|
7.97 |
|
|
|
6.93 |
|
|
7.84 |
|
Brokered deposits |
|
5.43 |
|
|
2.68 |
|
|
— |
|
|
|
4.07 |
|
|
— |
|
Time deposits |
|
11.64 |
|
|
10.61 |
|
|
9.14 |
|
|
|
11.13 |
|
|
9.39 |
|
Borrowed funds |
|
8.09 |
|
|
8.70 |
|
|
3.81 |
|
|
|
8.39 |
|
|
3.61 |
|
Total |
|
100.00 |
% |
|
100.00 |
% |
|
100.00 |
% |
|
|
100.00 |
% |
|
100.00 |
% |
|
|
|
|
|
|
|
Net interest income collected
on problem loans |
$ |
364 |
|
$ |
392 |
|
$ |
2,276 |
|
|
$ |
756 |
|
$ |
2,710 |
|
Total accretion on purchased
loans |
|
874 |
|
|
885 |
|
|
2,021 |
|
|
|
1,759 |
|
|
3,256 |
|
Total impact on net interest
income |
$ |
1,238 |
|
$ |
1,277 |
|
$ |
4,297 |
|
|
$ |
2,515 |
|
$ |
5,966 |
|
Impact on net interest
margin |
|
0.03 |
% |
|
0.03 |
% |
|
0.11 |
% |
|
|
0.03 |
% |
|
0.08 |
% |
Impact on loan yield |
|
0.04 |
% |
|
0.04 |
% |
|
0.16 |
% |
|
|
0.04 |
% |
|
0.12 |
% |
Loan Portfolio
(Dollars in thousands) |
As of |
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
Loan
Portfolio: |
|
|
|
|
|
Commercial, financial, agricultural |
$ |
1,729,070 |
$ |
1,740,778 |
$ |
1,673,883 |
$ |
1,513,091 |
$ |
1,497,272 |
Lease financing |
|
122,370 |
|
121,146 |
|
115,013 |
|
103,357 |
|
101,350 |
Real estate - construction |
|
1,369,019 |
|
1,424,352 |
|
1,330,337 |
|
1,215,056 |
|
1,126,363 |
Real estate - 1-4 family mortgages |
|
3,348,654 |
|
3,278,980 |
|
3,216,263 |
|
3,127,889 |
|
3,030,083 |
Real estate - commercial mortgages |
|
5,252,479 |
|
5,085,813 |
|
5,118,063 |
|
5,016,665 |
|
4,717,513 |
Installment loans to individuals |
|
108,924 |
|
115,356 |
|
124,745 |
|
128,946 |
|
131,163 |
Total loans |
$ |
11,930,516 |
$ |
11,766,425 |
$ |
11,578,304 |
$ |
11,105,004 |
$ |
10,603,744 |
Credit Quality and Allowance for Credit Losses on
Loans
(Dollars in thousands) |
As of |
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
Nonperforming
Assets: |
|
|
|
|
|
Nonaccruing loans |
$ |
55,439 |
|
$ |
56,626 |
|
$ |
56,545 |
|
$ |
54,278 |
|
$ |
43,897 |
|
Loans 90 days or more past due |
|
36,321 |
|
|
18,664 |
|
|
331 |
|
|
1,587 |
|
|
617 |
|
Total nonperforming loans |
|
91,760 |
|
|
75,290 |
|
|
56,876 |
|
|
55,865 |
|
|
44,514 |
|
Other real estate owned |
|
5,120 |
|
|
4,818 |
|
|
1,763 |
|
|
2,412 |
|
|
2,807 |
|
Total nonperforming assets |
$ |
96,880 |
|
$ |
80,108 |
|
$ |
58,639 |
|
$ |
58,277 |
|
$ |
47,321 |
|
|
|
|
|
|
|
Criticized
Loans |
|
|
|
|
|
Classified loans |
$ |
219,674 |
|
$ |
222,701 |
|
$ |
200,249 |
|
$ |
193,844 |
|
$ |
185,267 |
|
Special Mention loans |
|
56,616 |
|
|
64,832 |
|
|
86,172 |
|
|
69,883 |
|
|
87,476 |
|
Criticized loans(1) |
$ |
276,290 |
|
$ |
287,533 |
|
$ |
286,421 |
|
$ |
263,727 |
|
$ |
272,743 |
|
|
|
|
|
|
|
Allowance for credit losses on
loans |
$ |
194,391 |
|
$ |
195,292 |
|
$ |
192,090 |
|
$ |
174,356 |
|
$ |
166,131 |
|
Net loan charge-offs |
$ |
3,898 |
|
$ |
4,732 |
|
$ |
2,566 |
|
$ |
1,575 |
|
$ |
2,337 |
|
Annualized net loan
charge-offs / average loans |
|
0.13 |
% |
|
0.16 |
% |
|
0.09 |
% |
|
0.06 |
% |
|
0.09 |
% |
Nonperforming loans / total
loans |
|
0.77 |
|
|
0.64 |
|
|
0.49 |
|
|
0.50 |
|
|
0.42 |
|
Nonperforming assets / total
assets |
|
0.56 |
|
|
0.46 |
|
|
0.35 |
|
|
0.35 |
|
|
0.28 |
|
Allowance for credit losses on
loans / total loans |
|
1.63 |
|
|
1.66 |
|
|
1.66 |
|
|
1.57 |
|
|
1.57 |
|
Allowance for credit losses on
loans / nonperforming loans |
|
211.85 |
|
|
259.39 |
|
|
337.73 |
|
|
312.10 |
|
|
373.21 |
|
Criticized loans / total
loans |
|
2.32 |
|
|
2.44 |
|
|
2.47 |
|
|
2.37 |
|
|
2.57 |
|
(1) Criticized loans include loans in risk
rating classifications of classified and special mention.
CONFERENCE CALL INFORMATION:A
live audio webcast of a conference call with analysts will be
available beginning at 10:00 AM Eastern Time (9:00 AM Central Time)
on Wednesday, July 26, 2023.
The webcast is accessible through Renasant’s
investor relations website at www.renasant.com or
https://event.choruscall.com/mediaframe/webcast.html?webcastid=ICrvDnu5.
To access the conference via telephone, dial 1-877-513-1143 in the
United States and request the Renasant Corporation 2023 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
after the call and will remain accessible for one year. A replay
can be accessed via telephone by dialing 1-877-344-7529 in the
United States and entering conference number 3891007 or by dialing
1-412-317-0088 internationally and entering the same conference
number. Telephone replay access is available until August 9,
2023.
ABOUT RENASANT
CORPORATION:Renasant Corporation is the parent of Renasant
Bank, a 119-year-old financial services institution. Renasant has
assets of approximately $17.2 billion and operates 195 banking,
lending, mortgage, wealth management and insurance offices
throughout the Southeast as well as offering factoring and
asset-based lending on a nationwide basis.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS:
This press release may contain, or incorporate
by reference, statements about Renasant Corporation that 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. Statements preceded
by, followed by or that otherwise include the words “believes,”
“expects,” “projects,” “anticipates,” “intends,” “estimates,”
“plans,” “potential,” “focus,” “possible,” “may increase,” “may
fluctuate,” “will likely result,” and similar expressions, or
future or conditional verbs such as “will,” “should,” “would” and
“could,” are generally forward-looking in nature and not historical
facts. Forward-looking statements include information about the
Company’s future financial performance, business strategy,
projected plans and objectives and are based on the current beliefs
and expectations of management. The Company’s management believes
these forward-looking statements are reasonable, but they are all
inherently subject to significant business, economic and
competitive risks and uncertainties, many of which are beyond the
Company’s control. In addition, these forward-looking statements
are subject to assumptions with respect to future business
strategies and decisions that are subject to change. Actual results
may differ from those indicated or implied in the forward-looking
statements, and such differences may be material. Prospective
investors are cautioned that any forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties and, accordingly, investors should not place undue
reliance on these forward-looking statements, which speak only as
of the date they are made.
Important factors currently known to management
that could cause our actual results to differ materially from those
in forward-looking statements include the following: (i) the
Company’s ability to efficiently integrate acquisitions into its
operations, retain the customers of these businesses, grow the
acquired operations and realize the cost savings expected from an
acquisition to the extent and in the timeframe anticipated by
management; (ii) the effect of economic conditions and interest
rates on a national, regional or international basis; (iii) timing
and success of the implementation of changes in operations to
achieve enhanced earnings or effect cost savings; (iv) competitive
pressures in the consumer finance, commercial finance, insurance,
financial services, asset management, retail banking, factoring and
mortgage lending and auto lending industries; (v) the financial
resources of, and products available from, competitors; (vi)
changes in laws and regulations as well as changes in accounting
standards; (vii) changes in policy by regulatory agencies; (viii)
changes in the securities and foreign exchange markets; (ix) the
Company’s potential growth, including its entrance or expansion
into new markets, and the need for sufficient capital to support
that growth; (x) changes in the quality or composition of the
Company’s loan or investment portfolios, including adverse
developments in borrower industries or in repayment ability of
individual borrowers or issuers of investment securities, or the
impact of interest rates on the value of our investment securities
portfolio; (xi) an insufficient allowance for credit losses as a
result of inaccurate assumptions; (xii) changes in the sources and
costs of the capital we use to make loans and otherwise fund our
operations, due to deposit outflows, changes in the mix of deposits
and the cost and availability of borrowings; (xiii) general
economic, market or business conditions, including the impact of
inflation; (xiv) changes in demand for loan products and financial
services; (xv) concentration of credit exposure; (xvi) changes or
the lack of changes in interest rates, yield curves and interest
rate spread relationships; (xvii) increased cybersecurity risk,
including potential network breaches, business disruptions or
financial losses; (xviii) civil unrest, natural disasters,
epidemics (including the re-emergence of the COVID-19 pandemic) and
other catastrophic events in the Company’s geographic area; (xix)
the impact, extent and timing of technological changes; and (xx)
other circumstances, many of which are beyond management’s
control.
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 undertakes no obligation, and
specifically disclaims any obligation, to update or revise
forward-looking statements, whether as a result of new information
or to reflect changed assumptions, the occurrence of unanticipated
events or changes to future operating results over time, except as
required by federal securities laws.
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 and the presentation slides
furnished to the SEC on the same Form 8-K as this release contain
non-GAAP financial measures, including, without limitation, (i)
core loan yield, (ii) core net interest income and margin, (iii)
adjusted pre-provision net revenue, (iv) adjusted net income, (v)
adjusted diluted earnings per share, (vi) tangible book value per
share, (vii) the tangible common equity ratio, (viii) certain
performance ratios (namely, the ratio of adjusted pre-provision net
revenue to average assets, the adjusted return on average assets
and on average equity, and the return on average tangible assets
and on average tangible common equity (including on an as-adjusted
basis)), and (ix) the adjusted efficiency ratio.
These non-GAAP financial measures adjust GAAP
financial measures to exclude intangible assets and/or certain
charges (such as, for the most recently-completed quarter, losses
on the sale of securities and the recovery of the provision for
unfunded commitments, 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 the provision for
unfunded commitments (or the recovery thereof) 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 non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
tables below under the caption “Non-GAAP Reconciliations”.
None of the non-GAAP financial information that
the Company has included in this release or the accompanying
presentation slides are 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.
Non-GAAP Reconciliations
(Dollars in thousands, except
per share data) |
Three Months Ended |
|
Six Months Ended |
|
Jun 30, 2023 |
Mar 31, 2023 |
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
|
Jun 30, 2023 |
Jun 30, 2022 |
Adjusted
Pre-Provision Net Revenue (“PPNR”) |
|
|
|
|
|
|
Net income (GAAP) |
$ |
28,643 |
|
$ |
46,078 |
|
$ |
46,276 |
|
$ |
46,567 |
|
$ |
39,678 |
|
|
$ |
74,721 |
|
$ |
73,225 |
|
Income taxes |
|
6,634 |
|
|
11,322 |
|
|
12,885 |
|
|
13,563 |
|
|
10,857 |
|
|
|
17,956 |
|
|
18,792 |
|
Provision for credit losses
(including unfunded commitments) |
|
2,000 |
|
|
6,460 |
|
|
10,671 |
|
|
9,800 |
|
|
2,450 |
|
|
|
8,460 |
|
|
3,400 |
|
Pre-provision net revenue
(non-GAAP) |
$ |
37,277 |
|
$ |
63,860 |
|
$ |
69,832 |
|
$ |
69,930 |
|
$ |
52,985 |
|
|
$ |
101,137 |
|
$ |
95,417 |
|
Merger and conversion
expense |
|
— |
|
|
— |
|
|
1,100 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
687 |
|
Gain on sale of MSR |
|
— |
|
|
— |
|
|
— |
|
|
(2,960 |
) |
|
— |
|
|
|
— |
|
|
— |
|
Restructuring charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,187 |
|
|
|
— |
|
|
732 |
|
Voluntary reimbursement of
certain re-presentment NSF fees |
|
— |
|
|
— |
|
|
1,255 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Losses on security sales |
|
22,438 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
22,438 |
|
|
— |
|
Adjusted pre-provision net
revenue (non-GAAP) |
$ |
59,715 |
|
$ |
63,860 |
|
$ |
72,187 |
|
$ |
66,970 |
|
$ |
54,172 |
|
|
$ |
123,575 |
|
$ |
96,836 |
|
|
|
|
|
|
|
|
|
|
Adjusted
Net Income and Adjusted Tangible Net Income |
|
|
|
|
|
|
Net income (GAAP) |
$ |
28,643 |
|
$ |
46,078 |
|
$ |
46,276 |
|
$ |
46,567 |
|
$ |
39,678 |
|
|
$ |
74,721 |
|
$ |
73,225 |
|
Amortization of
intangibles |
|
1,369 |
|
|
1,426 |
|
|
1,195 |
|
|
1,251 |
|
|
1,310 |
|
|
|
2,795 |
|
|
2,676 |
|
Tax effect of adjustments
noted above(1) |
|
(266 |
) |
|
(299 |
) |
|
(260 |
) |
|
(265 |
) |
|
(291 |
) |
|
|
(569 |
) |
|
(594 |
) |
Tangible net income
(non-GAAP) |
$ |
29,746 |
|
$ |
47,205 |
|
$ |
47,211 |
|
$ |
47,553 |
|
$ |
40,697 |
|
|
$ |
76,947 |
|
$ |
75,307 |
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
28,643 |
|
$ |
46,078 |
|
$ |
46,276 |
|
$ |
46,567 |
|
$ |
39,678 |
|
|
$ |
74,721 |
|
$ |
73,225 |
|
Merger and conversion
expense |
|
— |
|
|
— |
|
|
1,100 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
687 |
|
Gain on sale of MSR |
|
— |
|
|
— |
|
|
— |
|
|
(2,960 |
) |
|
— |
|
|
|
— |
|
|
— |
|
Restructuring charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,187 |
|
|
|
— |
|
|
732 |
|
Initial provision for
acquisitions |
|
— |
|
|
— |
|
|
2,820 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Voluntary reimbursement of
certain re-presentment NSF fees |
|
— |
|
|
— |
|
|
1,255 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Losses on security sales |
|
22,438 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
22,438 |
|
|
— |
|
Tax effect of adjustments
noted above(1) |
|
(4,353 |
) |
|
— |
|
|
(1,127 |
) |
|
626 |
|
|
(264 |
) |
|
|
(4,568 |
) |
|
(315 |
) |
Adjusted net income
(non-GAAP) |
$ |
46,728 |
|
$ |
46,078 |
|
$ |
50,324 |
|
$ |
44,233 |
|
$ |
40,601 |
|
|
$ |
92,591 |
|
$ |
74,329 |
|
Amortization of
intangibles |
|
1,369 |
|
|
1,426 |
|
|
1,195 |
|
|
1,251 |
|
|
1,310 |
|
|
|
2,795 |
|
|
2,676 |
|
Tax effect of adjustments
noted above(1) |
|
(266 |
) |
|
(299 |
) |
|
(260 |
) |
|
(265 |
) |
|
(291 |
) |
|
|
(569 |
) |
|
(594 |
) |
Adjusted tangible net income
(non-GAAP) |
$ |
47,831 |
|
$ |
47,205 |
|
$ |
51,259 |
|
$ |
45,219 |
|
$ |
41,620 |
|
|
$ |
94,817 |
|
$ |
76,411 |
|
Tangible
Assets and Tangible Shareholders’ Equity |
|
|
|
|
|
|
Average shareholders’ equity
(GAAP) |
$ |
2,217,708 |
|
$ |
2,186,794 |
|
$ |
2,139,095 |
|
$ |
2,173,408 |
|
$ |
2,177,537 |
|
|
$ |
2,202,336 |
|
$ |
2,213,424 |
|
Average intangible assets |
|
1,013,811 |
|
|
1,011,557 |
|
|
967,005 |
|
|
967,154 |
|
|
968,441 |
|
|
|
1,012,690 |
|
|
966,956 |
|
Average tangible shareholders’
equity (non-GAAP) |
$ |
1,203,897 |
|
$ |
1,175,237 |
|
$ |
1,172,090 |
|
$ |
1,206,254 |
|
$ |
1,209,096 |
|
|
$ |
1,189,646 |
|
$ |
1,246,468 |
|
|
|
|
|
|
|
|
|
|
Average assets (GAAP) |
$ |
17,337,924 |
|
$ |
17,157,898 |
|
$ |
16,577,840 |
|
$ |
16,645,481 |
|
$ |
16,631,290 |
|
|
$ |
17,248,408 |
|
$ |
16,664,480 |
|
Average intangible assets |
|
1,013,811 |
|
|
1,011,557 |
|
|
967,005 |
|
|
967,154 |
|
|
968,441 |
|
|
|
1,012,690 |
|
|
966,956 |
|
Average tangible assets
(non-GAAP) |
$ |
16,324,113 |
|
$ |
16,146,341 |
|
$ |
15,610,835 |
|
$ |
15,678,327 |
|
$ |
15,662,849 |
|
|
$ |
16,235,718 |
|
$ |
15,697,524 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
(GAAP) |
$ |
2,208,628 |
|
$ |
2,187,300 |
|
$ |
2,136,016 |
|
$ |
2,092,281 |
|
$ |
2,116,877 |
|
|
$ |
2,208,628 |
|
$ |
2,116,877 |
|
Intangible assets |
|
1,013,046 |
|
|
1,014,415 |
|
|
1,015,884 |
|
|
966,461 |
|
|
967,713 |
|
|
|
1,013,046 |
|
|
967,713 |
|
Tangible shareholders’ equity
(non-GAAP) |
$ |
1,195,582 |
|
$ |
1,172,885 |
|
$ |
1,120,132 |
|
$ |
1,125,820 |
|
$ |
1,149,164 |
|
|
$ |
1,195,582 |
|
$ |
1,149,164 |
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
$ |
17,224,342 |
|
$ |
17,474,083 |
|
$ |
16,988,176 |
|
$ |
16,471,099 |
|
$ |
16,618,101 |
|
|
$ |
17,224,342 |
|
$ |
16,618,101 |
|
Intangible assets |
|
1,013,046 |
|
|
1,014,415 |
|
|
1,015,884 |
|
|
966,461 |
|
|
967,713 |
|
|
|
1,013,046 |
|
|
967,713 |
|
Total tangible assets
(non-GAAP) |
$ |
16,211,296 |
|
$ |
16,459,668 |
|
$ |
15,972,292 |
|
$ |
15,504,638 |
|
$ |
15,650,388 |
|
|
$ |
16,211,296 |
|
$ |
15,650,388 |
|
|
|
|
|
|
|
|
|
|
Adjusted Performance
Ratios |
|
|
|
|
|
|
|
|
Return on average assets
(GAAP) |
|
0.66 |
% |
|
1.09 |
% |
|
1.11 |
% |
|
1.11 |
% |
|
0.96 |
% |
|
|
0.87 |
% |
|
0.89 |
% |
Adjusted return on average
assets (non-GAAP) |
|
1.08 |
|
|
1.09 |
|
|
1.20 |
|
|
1.05 |
|
|
0.98 |
|
|
|
1.08 |
|
|
0.90 |
|
Return on average tangible
assets (non-GAAP) |
|
0.73 |
|
|
1.19 |
|
|
1.20 |
|
|
1.20 |
|
|
1.04 |
|
|
|
0.96 |
|
|
0.97 |
|
Adjusted pre-provision net
revenue to average assets (non-GAAP) |
|
1.38 |
|
|
1.51 |
|
|
1.73 |
|
|
1.60 |
|
|
1.31 |
|
|
|
1.44 |
|
|
1.17 |
|
Adjusted return on average
tangible assets (non-GAAP) |
|
1.18 |
|
|
1.19 |
|
|
1.30 |
|
|
1.14 |
|
|
1.07 |
|
|
|
1.18 |
|
|
0.98 |
|
Return on average equity
(GAAP) |
|
5.18 |
|
|
8.55 |
|
|
8.58 |
|
|
8.50 |
|
|
7.31 |
|
|
|
6.84 |
|
|
6.67 |
|
Adjusted return on average
equity (non-GAAP) |
|
8.45 |
|
|
8.55 |
|
|
9.33 |
|
|
8.07 |
|
|
7.48 |
|
|
|
8.48 |
|
|
6.77 |
|
Return on average tangible
equity (non-GAAP) |
|
9.91 |
|
|
16.29 |
|
|
15.98 |
|
|
15.64 |
|
|
13.50 |
|
|
|
13.04 |
|
|
12.18 |
|
Adjusted return on average
tangible equity (non-GAAP) |
|
15.94 |
|
|
16.29 |
|
|
17.35 |
|
|
14.87 |
|
|
13.81 |
|
|
|
16.07 |
|
|
12.36 |
|
|
|
|
|
|
|
|
|
|
Adjusted
Diluted Earnings Per Share |
|
|
|
|
|
|
Average diluted shares
outstanding |
|
56,395,653 |
|
|
56,270,219 |
|
|
56,335,446 |
|
|
56,248,720 |
|
|
56,182,845 |
|
|
|
56,330,295 |
|
|
56,130,762 |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
(GAAP) |
$ |
0.51 |
|
$ |
0.82 |
|
$ |
0.82 |
|
$ |
0.83 |
|
$ |
0.71 |
|
|
$ |
1.33 |
|
$ |
1.30 |
|
Adjusted diluted earnings per
share (non-GAAP) |
$ |
0.83 |
|
$ |
0.82 |
|
$ |
0.89 |
|
$ |
0.79 |
|
$ |
0.72 |
|
|
$ |
1.64 |
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
Per Share |
|
|
|
|
|
|
|
|
Shares outstanding |
|
56,132,478 |
|
|
56,073,658 |
|
|
55,953,104 |
|
|
55,953,104 |
|
|
55,932,017 |
|
|
|
56,132,478 |
|
|
55,932,017 |
|
|
|
|
|
|
|
|
|
|
Book value per share
(GAAP) |
$ |
39.35 |
|
$ |
39.01 |
|
$ |
38.18 |
|
$ |
37.39 |
|
$ |
37.85 |
|
|
$ |
39.35 |
|
$ |
37.85 |
|
Tangible book value per share
(non-GAAP) |
$ |
21.30 |
|
$ |
20.92 |
|
$ |
20.02 |
|
$ |
20.12 |
|
$ |
20.55 |
|
|
$ |
21.30 |
|
$ |
20.55 |
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity
Ratio |
|
|
|
|
|
|
|
|
Shareholders’ equity to assets
(GAAP) |
|
12.82 |
% |
|
12.52 |
% |
|
12.57 |
% |
|
12.70 |
% |
|
12.74 |
% |
|
|
12.82 |
% |
|
12.74 |
% |
Tangible common equity ratio
(non-GAAP) |
|
7.37 |
% |
|
7.13 |
% |
|
7.01 |
% |
|
7.26 |
% |
|
7.34 |
% |
|
|
7.37 |
% |
|
7.34 |
% |
Adjusted Efficiency
Ratio |
|
|
|
|
|
|
|
|
Net interest income (FTE)
(GAAP) |
$ |
133,085 |
|
$ |
138,529 |
|
$ |
140,565 |
|
$ |
132,435 |
|
$ |
115,321 |
|
|
$ |
271,614 |
|
$ |
216,704 |
|
|
|
|
|
|
|
|
|
|
Total noninterest income
(GAAP) |
$ |
17,226 |
|
$ |
37,293 |
|
$ |
33,395 |
|
$ |
41,186 |
|
$ |
37,214 |
|
|
$ |
54,519 |
|
$ |
74,672 |
|
Gain on sale of MSR |
|
— |
|
|
— |
|
|
— |
|
|
2,960 |
|
|
— |
|
|
|
— |
|
|
— |
|
Losses on security sales |
|
(22,438 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(22,438 |
) |
|
— |
|
Total adjusted noninterest
income (non-GAAP) |
$ |
39,664 |
|
$ |
37,293 |
|
$ |
33,395 |
|
$ |
38,226 |
|
$ |
37,214 |
|
|
$ |
76,957 |
|
$ |
74,672 |
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP) |
$ |
109,165 |
|
$ |
107,708 |
|
$ |
101,582 |
|
$ |
101,574 |
|
$ |
98,194 |
|
|
$ |
216,873 |
|
$ |
192,299 |
|
Amortization of
intangibles |
|
1,369 |
|
|
1,426 |
|
|
1,195 |
|
|
1,251 |
|
|
1,310 |
|
|
|
2,795 |
|
|
2,676 |
|
Merger and conversion
expense |
|
— |
|
|
— |
|
|
1,100 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
687 |
|
Restructuring charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,187 |
|
|
|
— |
|
|
732 |
|
Voluntary reimbursement of
certain re-presentment NSF fees |
|
— |
|
|
— |
|
|
1,255 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
(Recovery of) provision for
unfunded commitments |
|
(1,000 |
) |
|
(1,500 |
) |
|
183 |
|
|
— |
|
|
450 |
|
|
|
(2,500 |
) |
|
(100 |
) |
Total adjusted noninterest
expense (non-GAAP) |
$ |
108,796 |
|
$ |
107,782 |
|
$ |
97,849 |
|
$ |
100,323 |
|
$ |
95,247 |
|
|
$ |
216,578 |
|
$ |
188,304 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
72.63 |
% |
|
61.26 |
% |
|
58.39 |
% |
|
58.50 |
% |
|
64.37 |
% |
|
|
66.50 |
% |
|
66.00 |
% |
Adjusted efficiency ratio
(non-GAAP) |
|
62.98 |
% |
|
61.30 |
% |
|
56.25 |
% |
|
58.78 |
% |
|
62.44 |
% |
|
|
62.13 |
% |
|
64.63 |
% |
|
|
|
|
|
|
|
|
|
Core Net
Interest Income and Core Net Interest Margin |
|
|
|
|
|
|
Net interest income (FTE)
(GAAP) |
$ |
133,085 |
|
$ |
138,529 |
|
$ |
140,565 |
|
$ |
132,435 |
|
$ |
115,321 |
|
|
$ |
271,614 |
|
$ |
216,704 |
|
Net interest income collected
on problem loans |
|
364 |
|
|
392 |
|
|
161 |
|
|
78 |
|
|
2,276 |
|
|
|
756 |
|
|
2,710 |
|
Accretion recognized on
purchased loans |
|
874 |
|
|
885 |
|
|
625 |
|
|
1,317 |
|
|
2,021 |
|
|
|
1,759 |
|
|
3,256 |
|
Non-core net interest
income |
$ |
1,238 |
|
$ |
1,277 |
|
$ |
786 |
|
$ |
1,395 |
|
$ |
4,297 |
|
|
$ |
2,515 |
|
$ |
5,966 |
|
Core net interest income (FTE)
(non-GAAP) |
$ |
131,847 |
|
$ |
137,252 |
|
$ |
139,779 |
|
$ |
131,040 |
|
$ |
111,024 |
|
|
$ |
269,099 |
|
$ |
210,738 |
|
|
|
|
|
|
|
|
|
|
Net interest margin
(GAAP) |
|
3.45 |
% |
|
3.66 |
% |
|
3.78 |
% |
|
3.54 |
% |
|
3.11 |
% |
|
|
3.56 |
% |
|
2.94 |
% |
Core net interest margin
(non-GAAP) |
|
3.43 |
% |
|
3.63 |
% |
|
3.76 |
% |
|
3.50 |
% |
|
3.00 |
% |
|
|
3.53 |
% |
|
2.86 |
% |
|
|
|
|
|
|
|
|
|
Core Loan
Yield |
|
|
|
|
|
|
|
|
Loan interest income (FTE)
(GAAP) |
$ |
175,549 |
|
$ |
163,970 |
|
$ |
147,519 |
|
$ |
124,614 |
|
$ |
107,612 |
|
|
$ |
339,519 |
|
$ |
204,613 |
|
Net interest income collected
on problem loans |
|
364 |
|
|
392 |
|
|
161 |
|
|
78 |
|
|
2,276 |
|
|
|
756 |
|
|
2,710 |
|
Accretion recognized on
purchased loans |
|
874 |
|
|
885 |
|
|
625 |
|
|
1,317 |
|
|
2,021 |
|
|
|
1,759 |
|
|
3,256 |
|
Core loan interest income
(FTE) (non-GAAP) |
$ |
174,311 |
|
$ |
162,693 |
|
$ |
146,733 |
|
$ |
123,219 |
|
$ |
103,315 |
|
|
$ |
337,004 |
|
$ |
198,647 |
|
|
|
|
|
|
|
|
|
|
Loan yield (GAAP) |
|
5.93 |
% |
|
5.68 |
% |
|
5.19 |
% |
|
4.57 |
% |
|
4.12 |
% |
|
|
5.81 |
% |
|
4.00 |
% |
Core loan yield
(non-GAAP) |
|
5.89 |
% |
|
5.64 |
% |
|
5.16 |
% |
|
4.52 |
% |
|
3.96 |
% |
|
|
5.77 |
% |
|
3.89 |
% |
(1) Tax effect is calculated based on the
respective periods’ effective tax rate excluding the impact of
discrete items.
Contacts: |
For Media: |
For Financials: |
|
John S. Oxford |
James C. Mabry IV |
|
Senior Vice President |
Executive Vice President |
|
Chief Marketing Officer |
Chief Financial Officer |
|
(662) 680-1219 |
(662) 680-1281 |
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