RENASANT CORP - FORM 8-K - EX-99.1

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8-K - 8-K - RENASANT CORP	renasant8-kxearningsreleas.htm



Contacts:	For Media:	For Financials:
	John Oxford	Kevin Chapman
	Vice President	Executive Vice President
	Director of External Affairs	Chief Financial Officer
	(662) 680-1219	(662) 680-1450
	joxford@renasant.com	kchapman@renasant.com

RENASANT CORPORATION ANNOUNCES

2015 SECOND QUARTER EARNINGS

TUPELO, MISSISSIPPI (July 21, 2015) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced financial results for the second quarter of 2015. Net income for the second quarter of 2015 was $15,394,000, or basic and diluted earnings per share (“EPS”) of $0.49 and $0.48, respectively, as compared to $14,853,000, or basic and diluted EPS of $0.47, for the second quarter of 2014.

On July 1, 2015, the Company acquired by merger Heritage Financial Group, Inc. (“Heritage”), a bank holding company headquartered in Albany, Georgia, and the parent of HeritageBank of the South, a Georgia savings bank. The combined company has approximately $7.77 billion in total assets with 171 banking, mortgage, wealth management, investment and insurance offices throughout Mississippi, Tennessee, Alabama, Georgia and Florida. During the second quarter of 2015, the Company incurred pre-tax merger expenses related to the Heritage merger of

approximately $1,467,000, or $906,000 on an after-tax basis, which equated to a reduction of $0.03 in diluted EPS for the second quarter of 2015.

For the second quarter of 2015, the Company’s return on average assets and return on average equity were 1.06% and 8.42%, respectively, as compared to 1.02% and 8.67%, respectively, for the second quarter of 2014. The Company’s 2015 second quarter return on average tangible assets and return on average tangible shareholders’ equity were 1.17% and 14.89%, respectively, as compared to 1.15% and 16.55%, respectively, for the second quarter of 2014.

“We are pleased with our second quarter financial results highlighted by 16.37% annualized linked quarter non-acquired loan growth and strong revenue growth driven from our mortgage operations. Focusing on profitability for the quarter, our diluted earnings per share of $0.48 continues to represent some of the highest quarterly operating earnings in the 111-year history of our company excluding quarters which recognized one-time gains associated with acquisitions,” commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. “The sustainability of this profitability is reflected in our return on average assets of 1.06% for the quarter, marking the fifth consecutive quarter we’ve achieved greater than 1.00% return on average assets.”

Total assets as of June 30, 2015, were approximately $5.90 billion, as compared to $5.88 billion on a linked quarter basis and $5.81 billion as of December 31, 2014.

Total loans, including loans acquired in either the First M&F Corporation (“First M&F”) merger or in FDIC-assisted transactions (collectively referred to as “acquired loans”), were approximately $4.04 billion at June 30, 2015, as compared to $3.95 billion on a linked quarter basis and $3.99 billion as of December 31, 2014.

Excluding acquired loans, loans grew 4.30%, or 8.67% annualized, to $3.41 billion at June 30, 2015, as compared to $3.27 billion at December 31, 2014 and increased 4.08%, or 16.37% annualized, from $3.27 billion on a linked quarter basis.

Total deposits were $4.89 billion at June 30, 2015, as compared to $4.84 billion at December 31, 2014, and $4.89 billion at June 30, 2014. The Company’s cost of funds was 40 basis points for the second quarter of 2015, as compared to 48 basis points for the same quarter in 2014. The Company’s noninterest-bearing deposits averaged approximately $970 million, or 19.97% of average total deposits, for the second quarter of 2015, as compared to $937 million, or 19.58% for the fourth quarter of 2014, and $905 million, or 18.38% for the second quarter of 2014.

At June 30, 2015, the Company’s Tier 1 leverage capital ratio was 9.90%, its common equity Tier 1 capital ratio was 10.44%, its Tier 1 risk-based capital ratio was 12.52%, and its total risk-based capital ratio was 13.54%. The Company’s regulatory capital ratios continued to be in excess of the regulatory minimums required to be classified as “well-capitalized.”

“Looking at our capital levels, our tangible common equity ratio stands at 7.78% at June 30, 2015, which, coupled with our strong regulatory capital ratios, will continue to support future balance sheet growth whether organic or the result of additional external opportunity,” said McGraw.

Net interest income was $51.67 million for the second quarter of 2015, as compared to $52.17 million for the second quarter of 2014. Net interest margin was 4.17% for the second quarter of 2015, compared to 4.24% for the second quarter of 2014. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans was $3.60 million in the second quarter of 2015, which increased net interest margin 28 basis points, compared to $3.52 million, which is a 28 basis point increase in net interest margin for the same period in 2014.

Noninterest income increased 17.70% to $22.92 million for the second quarter of 2015, as compared to $19.47 million for the second quarter of 2014. The increase in noninterest income was primarily attributable to growth in the Company’s mortgage operations and resulting mortgage income.

Noninterest expense was $51.18 million for the second quarter of 2015, as compared to approximately $49.40 million for the second quarter of 2014. The increase in the Company’s noninterest expense was primarily attributable to an increase in salary and employee benefits as well as merger related expenses. The increase in salaries and employee benefits was due to higher levels of commissions paid in our mortgage banking division.

At June 30, 2015, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $44.26 million, and total other real estate owned (“OREO”) was $27.06 million. The Company’s nonperforming loans and OREO that were acquired either through the First M&F merger or in connection with FDIC-assisted transactions (collectively referred to as “acquired nonperforming assets”) were $23.10 million and $12.10 million, respectively at June 30, 2015.

Since the acquired nonperforming assets were recorded at fair value at the time of acquisition and/or are subject to loss-share agreements with the FDIC, which significantly mitigates our actual loss, the remaining information in this release on nonperforming loans, OREO and the related asset quality ratios excludes these acquired nonperforming assets.

The Company’s nonperforming loans were $21.16 million as of June 30, 2015, as compared to $20.19 million at December 31, 2014. Nonperforming loans as a percentage of total loans were 0.62% as of June 30, 2015 and December 31, 2014. The increase in nonperforming loans at June

30, 2015, was primarily due to a $2.8 million matured loan which was carried as 90 days past due at June 30, 2015 but has since been resolved through pay-off.

Annualized net charge-offs as a percentage of average loans were 0.16% for the second quarter of 2015, as compared to 0.23% for the same period in 2014. The Company recorded a provision for loan losses of $1.18 million for the second quarter of 2015, as compared to $1.45 million for the second quarter of 2014.

The allowance for loan losses totaled $41.89 million at June 30, 2015, as compared to $42.29 million as of December 31, 2014. The allowance for loan losses as a percentage of loans was 1.23% as of June 30, 2015, as compared to 1.29% as of December 31, 2014.

The Company’s coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 197.95% as of June 30, 2015, as compared to 209.49% as of December 31, 2014. Loans 30 to 89 days past due as a percentage of total loans were 0.19% at June 30, 2015, as compared to 0.32% at December 31, 2014.

OREO was $14.97 million as of June 30, 2015, as compared to $17.09 million at December 31, 2014.

“We continue to see many opportunities on the horizon, specifically strong commercial loan pipelines which support our annual loan growth goals with a robust mortgage loan pipeline, both of which should drive continued revenue growth,” stated McGraw. “With the addition of the Heritage team, its customers and operations, we continue to be well positioned to accelerate profitability and earnings growth, which in turn, we believe will generate shareholder value.”

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, July 22, 2015.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst150722. 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 10069391 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until August 5, 2015.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 111-year-old financial services institution, and Renasant Insurance. Renasant has assets of approximately $7.77 billion and operates more than 170 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama, Florida and Georgia.

NOTE TO INVESTORS:

This news release may contain, or incorporate by reference, statements which may 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” 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, and that 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 our portfolio of outstanding loans, and competition in our markets. We undertake no 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 certain non-GAAP financial measures. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets, which the Company’s management uses when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indications of its operating performance particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible can vary extensively from company to company and 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.

The specific non-GAAP financial measures used are return on average tangible shareholders’ equity, return on average tangible assets and the ratio of tangible equity to tangible assets (commonly referred to as the “average tangible shareholders’ equity”). The presentation of this non-GAAP financial information is not 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 other similarly titled measures presented by other companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																				Q2 2015 -		For The Six Months Ending
		2015						2014												Q2 2014		June 30,
		Second			First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2015			2014			Variance
Statement of earnings
Interest income - taxable equivalent basis		$	58,516		$	55,910		$	57,335		$	58,098		$	60,002		$	57,811		(2.48	)	$	114,426		$	117,813		(2.87	)
Interest income		$	56,769		$	54,166		$	55,596		$	56,358		$	58,277		$	56,177		(2.59	)	$	110,935		$	114,454		(3.07	)
Interest expense		5,099			5,324			5,580			5,886			6,108			6,206			(16.52	)	10,423			12,314			(15.36	)
	Net interest income	51,670			48,842			50,016			50,472			52,169			49,971			(0.96	)	100,512			102,140			(1.59	)
Provision for loan losses		1,175			1,075			1,050			2,217			1,450			1,450			(18.97	)	2,250			2,900			(22.41	)
	Net interest income after provision	50,495			47,767			48,966			48,255			50,719			48,521			(0.44	)	98,262			99,240			(0.99	)
Service charges on deposit accounts		6,092			5,933			6,526			6,747			6,193			5,916			(1.63	)	12,025			12,109			(0.69	)
Fees and commissions on loans and deposits		5,384			4,894			5,150			6,237			5,515			4,972			(2.38	)	10,278			10,487			(1.99	)
Insurance commissions and fees		2,119			1,967			1,973			2,270			2,088			1,863			1.48		4,086			3,951			3.42
Wealth management revenue		2,248			2,190			2,144			2,197			2,170			2,144			3.59		4,438			4,314			2.87
Securities gains (losses)		96			—			—			375			—			—			—		96			—			—
Gain on sale of mortgage loans		5,407			4,633			2,369			2,635			2,006			1,585			169.54		10,040			3,591			179.59
Gain on acquisition		—			—			—			—			—			—			—		—			—			—
Other		1,571			2,287			1,809			2,102			1,499			2,136			4.80		3,858			3,635			6.13
	Total noninterest income	22,917			21,904			19,971			22,563			19,471			18,616			17.70		44,821			38,087			17.68
Salaries and employee benefits		30,394			28,260			27,301			29,569			29,810			28,428			1.96		58,654			58,238			0.71
Data processing		3,152			3,181			2,949			2,906			2,850			2,695			10.60		6,333			5,545			14.21
Occupancy and equipment		5,524			5,559			5,146			5,353			4,906			4,847			12.60		11,083			9,753			13.64
Other real estate		954			532			723			1,101			1,068			1,701			(10.67	)	1,486			2,769			(46.33	)
Amortization of intangibles		1,239			1,275			1,327			1,381			1,427			1,471			(13.17	)	2,514			2,898			(13.25	)
Merger-related expenses		1,467			478			499			—			—			195			—		1,945			195			897.44
Debt extinguishment penalty		—			—			—			—			—			—			—		—			—			—
Other		8,446			8,129			8,034			7,865			9,335			8,308			(9.52	)	16,575			17,643			(6.05	)
	Total noninterest expense	51,176			47,414			45,979			48,175			49,396			47,645			3.60		98,590			97,041			1.60
Income before income taxes		22,236			22,257			22,958			22,643			20,794			19,492			6.93		44,493			40,286			10.44
Income taxes		6,842			7,017			7,361			7,108			5,941			5,895			15.17		13,859			11,836			17.09
	Net income	$	15,394		$	15,240		$	15,597		$	15,535		$	14,853		$	13,597		3.64		$	30,634		$	28,450		7.68
Basic earnings per share		$	0.49		$	0.48		$	0.49		$	0.49		$	0.47		$	0.43		4.26		$	0.97		$	0.90		7.78
Diluted earnings per share		0.48			0.48			0.49			0.49			0.47			0.43			2.13		0.96			0.90			6.67
Average basic shares outstanding		31,626,059			31,576,275			31,537,278			31,526,423			31,496,737			31,436,148			0.41		31,601,304			31,466,610			0.43
Average diluted shares outstanding		31,865,172			31,815,710			31,781,734			31,718,529			31,698,198			31,668,362			0.53		31,834,257			31,682,496			0.48
Common shares outstanding		31,644,706			31,604,937			31,545,145			31,533,703			31,519,641			31,480,395			0.40		31,644,706			31,519,641			0.40
Cash dividend per common share		$	0.17		$	0.17		$	0.17		$	0.17		$	0.17		$	0.17		—		$	0.34		$	0.34		—
Performance ratios
Return on average shareholders' equity		8.42		%	8.59		%	8.72		%	8.84		%	8.67		%	8.19		%			8.50		%	8.44		%
Return on average tangible shareholders' equity (1)		14.89		%	15.45		%	15.90		%	16.50		%	16.55		%	16.05		%			15.16		%	16.31		%
Return on average assets		1.06		%	1.06		%	1.08		%	1.07		%	1.02		%	0.93		%			1.06		%	0.98		%
Return on average tangible assets (2)		1.17		%	1.18		%	1.20		%	1.20		%	1.15		%	1.05		%			1.18		%	1.10		%
Net interest margin (FTE)		4.17		%	4.03		%	4.09		%	4.12		%	4.24		%	4.04		%			4.10		%	4.14		%
Yield on earning assets (FTE)		4.57		%	4.45		%	4.53		%	4.58		%	4.72		%	4.53		%			4.51		%	4.62		%
Cost of funding		0.40		%	0.43		%	0.45		%	0.47		%	0.48		%	0.48		%			0.42		%	0.48		%
Average earning assets to average assets		87.79		%	87.49		%	87.41		%	87.32		%	87.39		%	87.35		%			87.64		%	87.37		%
Average loans to average deposits		81.93		%	81.44		%	82.67		%	82.26		%	79.11		%	77.00		%			81.69		%	78.05		%
Noninterest income (less securities gains/
	losses) to average assets	1.57		%	1.53		%	1.38		%	1.53		%	1.34		%	1.27		%			1.55		%	1.31		%
Noninterest expense (less debt prepayment penalties/
	merger-related expenses) to average assets	3.41		%	3.27		%	3.14		%	3.32		%	3.39		%	3.25		%			3.34		%	3.32		%
Net overhead ratio		1.84		%	1.74		%	1.76		%	1.79		%	2.06		%	1.97		%			1.79		%	2.01		%
Efficiency ratio (FTE) (4)		63.58		%	62.99		%	61.56		%	62.90		%	65.38		%	65.48		%			63.29		%	65.43		%



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																				Q2 2015		For The Six Months Ending
		2015						2014												Q2 2014		June 30,
		Second			First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2015			2014			Variance
Average Balances
Total assets		$	5,847,539		$	5,821,758		$	5,746,146		$	5,758,083		$	5,836,607		$	5,927,884		0.19		$	5,834,718		$	5,881,993		(0.80	)
Earning assets		5,133,567			5,093,224			5,022,647			5,027,805			5,100,833			5,178,069			0.64		5,113,507			5,139,238			(0.50	)
Securities		999,962			989,743			979,052			1,001,548			1,026,948			1,002,519			(2.63	)	994,881			1,014,801			(1.96	)
Mortgage loans held for sale		87,435			50,918			27,443			31,832			26,004			19,925			236.24		69,277			22,981			201.45
Loans, net of unearned		3,978,514			3,969,244			3,954,606			3,937,142			3,897,027			3,868,747			2.09		3,973,905			3,882,966			2.34
Intangibles		295,441			296,682			297,978			300,725			302,181			303,599			(2.23	)	296,058			302,886			(2.25	)
Noninterest-bearing deposits		969,770			932,011			936,672			896,856			905,180			949,317			7.14		950,995			927,126			2.57
Interest-bearing deposits		3,886,199			3,941,863			3,846,891			3,889,133			4,020,754			4,074,745			(3.35	)	3,913,877			4,047,601			(3.30	)
Total deposits		4,855,969			4,873,874			4,783,563			4,785,988			4,925,934			5,024,063			(1.42	)	4,864,872			4,974,727			(2.21	)
Borrowed funds		204,884			168,758			190,928			214,017			169,373			170,091			20.97		186,921			169,730			10.13
Shareholders' equity		733,158			719,687			709,780			697,103			686,794			673,046			6.75		726,460			679,959			6.84


																				Q2 2015 -		As of
		2015						2014												Q4 2014		June 30,
		Second			First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2015			2014			Variance
Balances at period end
Total assets		$	5,899,190		$	5,882,098		$	5,805,129		$	5,751,711		$	5,826,020		$	5,902,831		1.62		$	5,899,190		$	5,826,020		1.26
Earning assets		5,186,419			5,168,497			5,063,039			5,053,252			5,063,873			5,161,173			2.44		5,186,419			5,063,873			2.42
Securities		965,290			1,016,393			983,747			980,328			1,007,331			1,046,688			(1.88	)	965,290			1,007,331			(4.17	)
Mortgage loans held for sale		108,023			102,780			25,628			30,451			28,116			28,433			321.50		108,023			28,116			284.20
Loans acquired from M&F		507,653			553,574			577,347			636,628			694,115			746,047			(12.07	)	507,653			694,115			(26.86	)
Loans not acquired		3,407,925			3,274,314			3,267,486			3,165,492			3,096,286			2,947,836			4.30		3,407,925			3,096,286			10.06
Loans acquired and subject to loss share		121,626			125,773			143,041			155,319			167,129			173,545			(14.97	)	121,626			167,129			(27.23	)
	Total loans	4,037,204			3,953,661			3,987,874			3,957,439			3,957,530			3,867,428			1.24		4,037,204			3,957,530			2.01
Intangibles		294,808			296,053			297,330			298,609			301,478			302,903			(0.85	)	294,808			301,478			(2.21	)
Noninterest-bearing deposits		972,672			959,351			919,872			935,544			902,766			914,964			5.74		972,672			902,766			7.74
Interest-bearing deposits		3,917,772			3,983,419			3,918,546			3,828,126			3,983,965			4,089,820			(0.02	)	3,917,772			3,983,965			(1.66	)
	Total deposits	4,890,444			4,942,770			4,838,418			4,763,670			4,886,731			5,004,784			1.08		4,890,444			4,886,731			0.08
Borrowed funds		219,089			162,313			188,825			227,664			189,830			168,700			16.03		219,089			189,830			15.41
Shareholders' equity		730,976			723,196			711,651			700,475			688,215			676,715			2.72		730,976			688,215			6.21
Market value per common share		$	32.60		$	30.05		$	28.93		$	27.05		$	29.07		$	29.05		12.69		$	32.60		$	29.07		12.14
Book value per common share		23.10			22.88			22.56			22.21			21.83			21.50			2.39		23.10			21.83			5.82
Tangible book value per common share		13.78			13.52			13.13			12.74			12.27			11.87			4.95		13.78			12.27			12.31
Shareholders' equity to assets (actual)		12.39		%	12.29		%	12.26		%	12.18		%	11.81		%	11.46		%			12.39		%	11.81		%
Tangible capital ratio (3)		7.78		%	7.65		%	7.52		%	7.37		%	7.00		%	6.68		%			7.78		%	7.00		%
Leverage ratio		9.90		%	9.74		%	9.53		%	9.31		%	8.91		%	8.56		%			9.90		%	8.91		%
Common equity tier 1 capital ratio		10.44		%	10.35		%	—		%	—		%	—		%	—		%			10.44		%	—		%
Tier 1 risk-based capital ratio		12.52		%	12.47		%	12.45		%	12.28		%	11.82		%	11.54		%			12.52		%	11.82		%
Total risk-based capital ratio		13.54		%	13.51		%	13.54		%	13.43		%	12.96		%	12.70		%			13.54		%	12.96		%



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																			Q2 2015 -		As of
	2015						2014												Q4 2014		June 30,
	Second			First			Fourth			Third			Second			First			Percent								Percent
	Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2015			2014			Variance
Loans not acquired
Commercial, financial, agricultural	$	437,181		$	418,752		$	418,501		$	378,802		$	365,262		$	347,828		4.46		$	437,181		$	365,262		19.69
Lease Financing	17,633			11,560			10,114			5,377			1,767			612			74.34		17,633			1,767			897.91
Real estate- construction	212,071			200,966			210,837			193,787			172,319			149,449			0.59		212,071			172,319			23.07
Real estate - 1-4 family mortgages	1,073,816			1,025,264			1,014,412			984,778			966,546			941,260			5.86		1,073,816			966,546			11.10
Real estate - commercial mortgages	1,589,969			1,542,706			1,538,950			1,527,680			1,516,372			1,441,404			3.32		1,589,969			1,516,372			4.85
Installment loans to individuals	77,255			75,066			74,672			75,068			74,020			67,283			3.46		77,255			74,020			4.37
Loans, net of unearned	$	3,407,925		$	3,274,314		$	3,267,486		$	3,165,492		$	3,096,286		$	2,947,836		4.30		$	3,407,925		$	3,096,286		10.06
Loans acquired and subject to loss share
Commercial, financial, agricultural	$	3,726		$	3,917		$	6,684		$	7,699		$	7,677		$	8,283		(44.25	)	$	3,726		$	7,677		(51.47	)
Lease Financing	—			—			—			—			—			—			—		—			—			—
Real estate- construction	—			—			—			1,648			1,648			1,648			—		—			1,648			(100.00	)
Real estate - 1-4 family mortgages	40,333			42,758			44,017			46,354			49,616			52,252			(8.37	)	40,333			49,616			(18.71	)
Real estate - commercial mortgages	77,536			79,064			92,304			99,579			108,166			111,337			(16.00	)	77,536			108,166			(28.32	)
Installment loans to individuals	31			34			36			39			22			25			(13.89	)	31			22			40.91
Loans, net of unearned	$	121,626		$	125,773		$	143,041		$	155,319		$	167,129		$	173,545		(14.97	)	$	121,626		$	167,129		(27.23	)
Loans acquired from M&F
Commercial, financial, agricultural	$	39,652		$	52,119		$	58,098		$	64,058		$	74,887		$	84,005		(31.75	)	$	39,652		$	74,887		(47.05	)
Lease Financing	—			—			—			—			—			—			—		—			—			—
Real estate- construction	505			483			1,224			1,631			2,610			4,803			(58.74	)	505			2,610			(80.65	)
Real estate - 1-4 family mortgages	161,765			171,433			177,931			190,447			205,126			217,748			(9.09	)	161,765			205,126			(21.14	)
Real estate - commercial mortgages	295,484			317,224			325,660			363,793			390,781			415,417			(9.27	)	295,484			390,781			(24.39	)
Installment loans to individuals	10,247			12,315			14,434			16,699			20,711			24,074			(29.01	)	10,247			20,711			(50.52	)
Loans, net of unearned	$	507,653		$	553,574		$	577,347		$	636,628		$	694,115		$	746,047		(12.07	)	$	507,653		$	694,115		(26.86	)
Asset quality data
Assets not acquired:
Nonaccrual loans	$	15,514		$	17,719		$	18,781		$	19,070		$	17,175		$	18,365		(17.40	)	$	15,514		$	17,175		(9.67	)
Loans 90 past due or more	5,647			1,193			1,406			7,177			3,615			1,322			301.64		5,647			3,615			56.21
Nonperforming loans	21,161			18,912			20,187			26,247			20,790			19,687			4.82		21,161			20,790			1.78
Other real estate owned	14,967			16,735			17,087			20,461			23,950			25,117			(12.41	)	14,967			23,950			(37.51	)
Nonperforming assets not acquired	$	36,128		$	35,647		$	37,274		$	46,708		$	44,740		$	44,804		(3.07	)	$	36,128		$	44,740		(19.25	)
Assets acquired and subject to loss share:
Nonaccrual loans	$	19,487		$	18,040		$	24,172		$	33,216		$	41,425		$	46,078		(19.38	)	$	19,487		$	41,425		(52.96	)
Loans 90 past due or more	—			—			48			1,979			—			32			(100.00	)	—			—			—
Nonperforming loans	19,487			18,040			24,220			35,195			41,425			46,110			(19.54	)	19,487			41,425			(52.96	)
Other real estate owned	3,853			4,325			6,368			4,033			7,472			10,218			(39.49	)	3,853			7,472			(48.43	)
Nonperforming assets acquired and subject to loss share	$	23,340		$	22,365		$	30,588		$	39,228		$	48,897		$	56,328		(23.70	)	$	23,340		$	48,897		(52.27	)
Assets acquired from M&F:
Nonaccrual loans	$	1,085		$	1,627		$	1,443		$	1,991		$	5,966		$	6,393		(24.81	)	$	1,085		$	5,966		(81.81	)
Loans 90 past due or more	2,523			9,636			9,259			8,375			5,057			1,922			(72.75	)	2,523			5,057			(50.11	)
Nonperforming loans	3,608			11,263			10,702			10,366			11,023			8,315			(66.29	)	3,608			11,023			(67.27	)
Other real estate owned	8,244			10,626			11,017			9,565			10,381			12,406			(25.17	)	8,244			10,381			(20.59	)
Nonperforming assets acquired from M&F	$	11,852		$	21,889		$	21,719		$	19,931		$	21,404		$	20,721		(45.43	)	$	11,852		$	21,404		(44.63	)
Net loan charge-offs (recoveries)	$	1,589		$	1,062		$	3,330		$	4,952		$	2,194		$	1,067		(52.28	)	$	2,651		$	3,261		(18.71	)
Allowance for loan losses	41,888			42,302			42,289			44,569			47,304			48,048			(0.95	)	41,888			47,304			(11.45	)
Annualized net loan charge-offs / average loans	0.16		%	0.11		%	0.33		%	0.50		%	0.23		%	0.11		%			0.13		%	0.17		%
Nonperforming loans / total loans*	1.10		%	1.22		%	1.38		%	1.81		%	1.85		%	1.92		%			1.10		%	1.85		%
Nonperforming assets / total assets*	1.21		%	1.36		%	1.54		%	1.84		%	1.97		%	2.06		%			1.21		%	1.97		%
Allowance for loan losses / total loans*	1.04		%	1.07		%	1.06		%	1.13		%	1.20		%	1.24		%			1.04		%	1.20		%
Allowance for loan losses / nonperforming loans*	94.65		%	87.74		%	76.74		%	62.07		%	64.59		%	64.83		%			94.65		%	64.59		%
Nonperforming loans / total loans**	0.62		%	0.58		%	0.62		%	0.83		%	0.67		%	0.67		%			0.62		%	0.67		%
Nonperforming assets / total assets**	0.61		%	0.61		%	0.64		%	0.81		%	0.77		%	0.76		%			0.61		%	0.77		%
Allowance for loan losses / total loans**	1.23		%	1.29		%	1.29		%	1.41		%	1.53		%	1.63		%			1.23		%	1.53		%
Allowance for loan losses / nonperforming loans**	197.95		%	223.68		%	209.49		%	169.81		%	227.53		%	244.06		%			197.95		%	227.53		%
*Based on all assets (includes acquired assets)
**Excludes assets acquired from M&F and assets covered under loss share



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

								RECONCILIATION OF GAAP TO NON-GAAP

																				For The Six Months Ending
		2015						2014												June 30,
		Second			First			Fourth			Third			Second			First
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			2015			2014
Net income (GAAP)		$	15,394		$	15,240		$	15,597		$	15,535		$	14,853		$	13,597		$	30,634		$	28,450
	Amortization of intangibles, net of tax	858			873			902			947			1,019			1,026			1,731			2,047
Tangible net income (non-GAAP)		$	16,252		$	16,113		$	16,499		$	16,482		$	15,872		$	14,623		$	32,365		$	30,497

Average shareholders' equity (GAAP)		$	733,158		$	719,687		$	709,780		$	697,103		$	686,794		$	673,046		$	726,460		$	679,959
	Intangibles	295,441			296,682			297,978			300,725			302,181			303,599			296,058			302,886
Average tangible s/h's equity (non-GAAP)		$	437,717		$	423,005		$	411,802		$	396,378		$	384,613		$	369,447		$	430,402		$	377,073

Average total assets (GAAP)		$	5,847,539		$	5,821,758		$	5,746,146		$	5,758,083		$	5,836,607		$	5,927,884		$	5,834,718		$	5,881,993
	Intangibles	295,441			296,682			297,978			300,725			302,181			303,599			296,058			302,886
Average tangible assets (non-GAAP)		$	5,552,098		$	5,525,076		$	5,448,168		$	5,457,358		$	5,534,426		$	5,624,285		$	5,538,660		$	5,579,107

Actual total assets (GAAP)		$	5,899,190		$	5,882,098		$	5,805,129		$	5,751,711		$	5,826,020		$	5,902,831		$	5,899,190		$	5,826,020
	Intangibles	294,808			296,053			297,330			298,609			301,478			302,903			294,808			301,478
Actual tangible assets (non-GAAP)		$	5,604,382		$	5,586,045		$	5,507,799		$	5,453,102		$	5,524,542		$	5,599,928		$	5,604,382		$	5,524,542

(1) Return on Average Equity
Return on avg s/h's equity (GAAP)		8.42		%	8.59		%	8.72		%	8.84		%	8.67		%	8.19		%	8.50		%	8.44		%
	Effect of adjustment for intangible assets	6.47		%	6.86		%	7.18		%	7.66		%	7.88		%	7.86		%	6.66		%	7.87		%
Return on avg tangible s/h's equity (non-GAAP)		14.89		%	15.45		%	15.90		%	16.50		%	16.55		%	16.05		%	15.16		%	16.31		%

(2) Return on Average Assets
Return on (average) assets (GAAP)		1.06		%	1.06		%	1.08		%	1.07		%	1.02		%	0.93		%	1.06		%	0.98		%
	Effect of adjustment for intangible assets	0.11		%	0.12		%	0.12		%	0.13		%	0.13		%	0.12		%	0.12		%	0.13		%
Return on average tangible assets (non-GAAP)		1.17		%	1.18		%	1.20		%	1.20		%	1.15		%	1.05		%	1.18		%	1.10		%

(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP)		12.39		%	12.29		%	12.26		%	12.18		%	11.81		%	11.46		%	12.39		%	11.81		%
	Effect of adjustment for intangible assets	4.61		%	4.65		%	4.74		%	4.81		%	4.81		%	4.79		%	4.61		%	4.81		%
Tangible capital ratio (non-GAAP)		7.78		%	7.65		%	7.52		%	7.37		%	7.00		%	6.68		%	7.78		%	7.00		%


								CALCULATION OF EFFICIENCY RATIO

Interest income (FTE)		$	58,516		$	55,910		$	57,335		$	58,098		$	60,002		$	57,811		$	114,426		$	117,813
	Interest expense	5,099			5,324			5,580			5,886			6,108			6,206			10,423			12,314
Net Interest income (FTE)		$	53,417		$	50,586		$	51,755		$	52,212		$	53,894		$	51,605		$	104,003		$	105,499

Total noninterest income		$	22,917		$	21,904		$	19,971		$	22,563		$	19,471		$	18,616		$	44,821		$	38,087
	Securities gains (losses)	96			—			—			375			—			—			96			—
	Gain on acquisition	—			—			—			—			—			—			—			—
Total noninterest income		$	22,821		$	21,904		$	19,971		$	22,188		$	19,471		$	18,616		$	44,725		$	38,087
Total Income (FTE)		$	76,238		$	72,490		$	71,726		$	74,400		$	73,365		$	70,221		$	148,728		$	143,586

Total noninterest expense		$	51,176		$	47,414		$	45,979		$	48,175		$	49,396		$	47,645		$	98,590		$	97,041
	Amortization of intangibles	1,239			1,275			1,327			1,381			1,427			1,471			2,514			2,898
	Merger-related expenses	1,467			478			499			—			—			195			1,945			195
	Debt extinguishment penalty	—			—			—			—			—			—			—			—
Total noninterest expense		$	48,470		$	45,661		$	44,153		$	46,794		$	47,969		$	45,979		$	94,131		$	93,948

(4) Efficiency Ratio		63.58		%	62.99		%	61.56		%	62.90		%	65.38		%	65.48		%	63.29		%	65.43		%

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