RENASANT CORP - FORM 8-K - EX-99.1 - EXHIBIT

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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 ANNOUNCES 2014

SECOND QUARTER EARNINGS

TUPELO, MISSISSIPPI (July 15, 2014) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced its financial results for the second quarter of 2014. Net income increased 85% for the second quarter of 2014 to $14,853,000, or basic and diluted earnings per share (“EPS”) of $0.47, as compared to $8,019,000, or basic and diluted EPS of $0.32, for the second quarter of 2013. The Company’s balance sheet and results of operations as of and for the three months ending June 30, 2014, include the impact of the Company’s acquisition of First M&F Corporation (“First M&F”), which was completed on September 1, 2013. Periods presented prior to September 1, 2013, do not reflect any impact from the First M&F acquisition.

For the second quarter of 2014, the Company’s return on assets and return on equity were 1.02% and 8.67%, respectively, as compared to 0.76% and 6.35%, respectively, for the second quarter of 2013. The Company’s 2014 second quarter return on tangible assets and return on tangible

equity were 1.15% and 16.55%, respectively, as compared to 0.82% and 10.47%, respectively, for the second quarter of 2013.

“Our second quarter financial results reflect the achievement of several key short-term initiatives and continued progress on our long-term strategies, specifically a return to higher levels of sustainable profitability and replenishing capital deployed in the First M&F acquisition. Focusing first on sustainable profitability, our earnings per share of 47 cents represents our highest quarterly earnings in the 110-year history of our company excluding quarters which recognized one-time gains associated with acquisitions. In addition, our return on assets was 1.02% for the quarter, marking the first time our return on assets exceeded 1% since the economic downturn,” commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. “These accomplishments were driven by annualized linked quarter non-acquired loan growth of 20.1% and a continued focus on generating revenues from our diversified lines of business while at the same time managing expenses to ensure future revenue growth is maximized. In regards to capital levels, our tangible common equity ratio stands at 7.00% at June 30, 2014, which, coupled with our strong regulatory capital ratios, will continue to support future balance sheet growth whether that growth is organic or the result of an external opportunity.”

Total assets as of June 30, 2014, were approximately $5.83 billion, as compared to $5.74 billion from December 31, 2013, and $5.9 billion on a linked quarter basis. The decrease in assets on a linked quarter basis is due to the seasonal runoff of deposits, primarily in public fund deposits, and the related divestiture of the liquid assets (low-yielding interest bearing cash or short-term investments) in which these seasonal deposits were invested.

Total loans, including loans acquired in either the First M&F merger or in FDIC-assisted transactions (collectively referred to as “acquired loans”), were approximately $3.96 billion at June 30, 2014, as compared to $3.88 billion at December 31, 2013, and $3.87 billion on a linked quarter basis. Excluding acquired loans, loans grew 7.3%, or 14.6% annualized, to $3.10 billion at June 30, 2014, as compared to $2.89 billion at December 31, 2013, and increased 5.0%, or 20.1% annualized, from $2.95 billion on a linked quarter basis.

Total deposits were $4.89 billion at June 30, 2014, as compared to $4.84 billion at December 31, 2013, and $5.00 billion on a linked quarter basis. Noninterest-bearing deposits averaged approximately $905.2 million, which represents 18.4% of the Company’s average deposits, for the second quarter of 2014, as compared to $562.1 million, or 16% of average deposits, for the second quarter of 2013. The Company’s cost of funds was 48 basis points for the second quarter of 2014, as compared to 60 basis points for the same quarter in 2013.

As of June 30, 2014, the Company's Tier 1 leverage capital ratio was 8.91%, its Tier 1 risk-based capital ratio was 11.82%, and its total risk-based capital ratio was 12.96%. The Company’s tangible common equity ratio was 7.00%. All of the Company’s regulatory capital ratios increased on a linked quarter basis and continue to be in excess of the regulatory minimums required to be classified as “well-capitalized.”

Net interest income was $52.2 million for the second quarter of 2014, as compared to $34.4 million for the second quarter of 2013 and $50.0 million for the first quarter of 2014. Net interest margin was 4.24% for the second quarter of 2014, as compared to 3.88% for the second quarter of 2013 and 4.04% for the first quarter of 2014.

Noninterest income was $19.5 million for the second quarter of 2014, as compared to $17.3 million for the second quarter of 2013 and $18.6 million on a linked quarter basis. The Company’s increase in noninterest income year-over-year is primarily attributable to the First M&F merger, notably a 37% increase in service charges and a 120% increase in insurance commissions and fees. On a linked quarter basis, the Company’s growth in noninterest income was driven by higher levels of deposit and loan fees, and increased revenues generated from the Company’s insurance, wealth management and mortgage banking divisions.

Noninterest expense was $49.4 million for the second quarter of 2014, as compared to $37.7 million for the second quarter of 2013. The increase in noninterest expense, as compared to the same period in 2013, was primarily due to the expenses of the acquired First M&F operations. The increase in expense was offset, however, by a significant reduction in costs associated with other real estate owned (“OREO”) as OREO expense decreased approximately 39.76% as compared to the second quarter of 2013. On a linked quarter comparison, noninterest expense increased primarily due to higher levels of salaries and employee benefits as a result of higher commissions on mortgage and insurance production and higher than anticipated health insurance claims.

At June 30, 2014, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $73.2 million and total OREO was $41.8 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 $52.4 million and $17.9 million, respectively, at June 30, 2014.

Since the acquired nonperforming assets were recorded at fair value at the time of acquisition or 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 $20.8 million as of June 30, 2014, as compared to $19.2 million as of December 31, 2013. Nonperforming loans as a percentage of total loans were 0.67% as of June 30, 2014, as compared to 0.66% as of December 31, 2013.

Annualized net charge-offs as a percentage of average loans were 0.23% for the second quarter of 2014, as compared to 0.35% for the second quarter of 2013. The Company recorded a provision for loan losses of $1.5 million for the second quarter of 2014, as compared to $3.0 million for the second quarter of 2013.

The allowance for loan losses totaled $47.3 million at June 30, 2014, as compared to $47.7 million as of December 31, 2013. The allowance for loan losses as a percentage of loans was 1.53% as of June 30, 2014, as compared to 1.65% as of December 31, 2013.

The Company’s coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 227.53% as of June 30, 2014, as compared to 248.90% as of December 31, 2013. Loans 30-to-89 days past due as a percentage of total loans declined to 0.25% at June 30, 2014, as compared to 0.31% at December 31, 2013. OREO was $23.9 million as of June 30, 2014, as compared to $27.5 million as of December 31, 2013.

“In closing, our quarterly results represent our efforts to increase profitability in an economic period where competition results in thin margins. Despite these headwinds, our strong commercial and mortgage loan pipelines and our continued focus on improving our efficiency positions us to be opportunistic and drive higher levels of future profitability,” stated McGraw.

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 16, 2014.

The webcast and call can be accessed by pre-registering (preferred method) at http://dpregister.com/10049152 or visiting http://services.choruscall.com/links/rnst140716.html at the time of the call. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Second Quarter 2014 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 10049152 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until 9:00 AM ET on July 31, 2014.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 110-year-old financial services institution, and Renasant Insurance. Renasant has assets of approximately $5.8 billion and operates more than 120 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama 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 “tangible capital ratio”). 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.

Reconciliations of these 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.”

###



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																				Q2 2014 -		For The Six Months Ending
		2014						2013												Q2 2013		June 30,
		Second			First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2014			2013			Variance
Statement of earnings
Interest income - taxable equivalent basis		$	60,004		$	57,810		$	58,644		$	46,083		$	41,331		$	40,371		45.18		$	117,814		$	81,702		44.20
Interest income		$	58,277		$	56,177		$	57,076		$	44,638		$	39,945		$	38,945		45.89		$	114,454		$	78,890		45.08
Interest expense		6,108			6,206			6,408			5,890			5,541			5,564			10.23		12,314			11,105			10.89
	Net interest income	52,169			49,971			50,668			38,748			34,404			33,381			51.64		102,140			67,785			50.68
Provision for loan losses		1,450			1,450			2,000			2,300			3,000			3,050			(51.67	)	2,900			6,050			(52.07	)
	Net interest income after provision	50,719			48,521			48,668			36,448			31,404			30,331			61.50		99,240			61,735			60.75
Service charges on deposit accounts		6,194			5,915			6,165			5,361			4,509			4,500			37.37		12,109			9,009			34.41
Fees and commissions on loans and deposits		5,515			4,972			5,300			4,982			4,848			4,831			13.76		10,487			9,679			8.35
Insurance commissions and fees		2,088			1,863			1,869			1,295			951			861			119.56		3,951			1,812			118.05
Wealth management revenue		2,170			2,144			2,124			2,091			1,715			1,724			26.53		4,314			3,439			25.44
Securities gains (losses)		—			—			—			—			—			54			—		—			54			(100.00	)
Gain on sale of mortgage loans		2,005			1,586			1,350			2,788			3,870			3,565			(48.19	)	3,591			7,435			(51.70	)
Gain on acquisition		—			—			—			—			—			—			—		—			—			—
Other		1,499			2,136			1,533			2,418			1,424			1,843			5.27		3,635			3,267			11.26
	Total noninterest income	19,471			18,616			18,341			18,935			17,317			17,378			12.44		38,087			34,695			9.78
Salaries and employee benefits		29,810			28,428			29,911			25,689			21,906			21,274			36.08		58,238			43,180			34.87
Data processing		2,850			2,695			2,546			2,236			2,045			2,043			39.36		5,545			4,088			35.64
Occupancy and equipment		4,906			4,847			5,105			4,576			3,668			3,608			33.75		9,753			7,276			34.04
Other real estate		1,068			1,701			1,607			1,537			1,773			2,049			(39.76	)	2,769			3,822			(27.55	)
Amortization of intangibles		1,427			1,471			1,508			724			314			323			354.46		2,898			637			354.95
Merger-related expenses		—			195			1,879			3,763			385			—			(100.00	)	195			385			(49.35	)
Debt extinguishment penalty		—			—			—			—			—			—			—		—			—			—
Other		9,335			8,308			8,573			8,088			7,643			8,303			22.14		17,643			15,946			10.64
	Total noninterest expense	49,396			47,645			51,129			46,613			37,734			37,600			30.91		97,041			75,334			28.81
Income before income taxes		20,794			19,492			15,880			8,770			10,987			10,109			89.26		40,286			21,096			90.97
Income taxes		5,941			5,895			4,620			2,133			2,968			2,538			100.17		11,836			5,506			114.97
	Net income	$	14,853		$	13,597		$	11,260		$	6,637		$	8,019		$	7,571		85.22		$	28,450		$	15,590		82.49
Basic earnings per share		$	0.47		$	0.43		$	0.36		$	0.24		$	0.32		$	0.30		46.88		$	0.90		$	0.62		45.16
Diluted earnings per share		0.47			0.43			0.36			0.24			0.32			0.30			46.88		0.90			0.62			45.16
Average basic shares outstanding		31,496,737			31,436,148			31,366,019			27,234,927			25,223,749			25,186,229			24.87		31,466,610			25,205,092			24.84
Average diluted shares outstanding		31,698,198			31,724,474			31,617,681			27,447,382			25,373,868			25,288,785			24.92		31,682,496			25,334,898			25.05
Common shares outstanding		31,519,541			31,480,395			31,387,668			31,358,583			25,231,074			25,208,733			24.92		31,519,641			25,231,074			24.92
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		8.67		%	8.19		%	6.71		%	4.75		%	6.35		%	6.12		%			8.44		%	6.24		%
Return on average tangible shareholders' equity		16.55		%	16.05		%	13.55		%	8.74		%	10.47		%	10.19		%			16.31		%	10.34		%
Return on average assets		1.02		%	0.93		%	0.78		%	0.56		%	0.76		%	0.73		%			0.98		%	0.75		%
Return on average tangible assets		1.15		%	1.05		%	0.90		%	0.63		%	0.82		%	0.79		%			1.10		%	0.80		%
Net interest margin (FTE)		4.24		%	4.04		%	4.16		%	3.86		%	3.88		%	3.89		%			4.14		%	3.89		%
Yield on earning assets (FTE)		4.72		%	4.53		%	4.67		%	4.42		%	4.49		%	4.51		%			4.62		%	4.50		%
Cost of funding		0.48		%	0.48		%	0.51		%	0.57		%	0.60		%	0.62		%			0.48		%	0.61		%
Average earning assets to average assets		87.39		%	87.35		%	86.78		%	87.43		%	87.32		%	86.31		%			87.37		%	86.82		%
Average loans to average deposits		79.11		%	77.00		%	79.89		%	81.69		%	80.93		%	80.30		%			78.05		%	80.62		%
Noninterest income (less securities gains/
	losses) to average assets	1.34		%	1.27		%	1.27		%	1.59		%	1.64		%	1.67		%			1.31		%	1.66		%
Noninterest expense (less debt prepayment penalties/
	merger-related expenses) to average assets	3.39		%	3.25		%	3.40		%	3.59		%	3.54		%	3.63		%			3.32		%	3.58		%
Net overhead ratio		2.06		%	1.97		%	2.14		%	2.01		%	1.90		%	1.95		%			2.01		%	1.93		%
Efficiency ratio (FTE)**		65.38		%	65.48		%	67.65		%	71.25		%	69.74		%	71.51		%			65.43		%	70.61		%
**Excludes debt extinguishment penalties and merger-related expenses from noninterest expense and profit (loss) on sales of securities and gains on acquisitions from noninterest income



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																				Q2 2014 -		For The Six Months Ending
		2014						2013												Q2 2013		June 30,
		Second			First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2014			2013			Variance
Average Balances
Total assets		$	5,836,607		$	5,927,884		$	5,741,794		$	4,729,079		$	4,231,947		$	4,206,411		37.92		$	5,881,993		$	4,219,250		39.41
Earning assets		5,100,834			5,178,069			4,982,614			4,134,730			3,695,409			3,630,759			38.03		5,139,238			3,663,263			40.29
Securities		1,026,948			1,002,519			924,179			819,351			754,515			698,863			36.11		1,014,801			726,843			39.62
Mortgage loans held for sale		26,004			19,925			25,248			37,056			32,318			22,347			(19.54	)	22,981			27,360			(16.01	)
Loans, net of unearned		3,897,028			3,868,747			3,865,615			3,213,853			2,845,260			2,804,618			36.97		3,882,966			2,825,051			37.45
Intangibles		302,181			303,599			304,388			227,606			190,362			190,787			58.74		302,886			190,573			58.93
Noninterest-bearing deposits		$	905,180		$	949,317		$	888,888		$	660,415		$	562,104		$	549,514		61.03		$	927,126		$	555,844		66.80
Interest-bearing deposits		4,020,754			4,074,746			3,949,909			3,273,658			2,953,435			2,943,247			36.14		4,047,601			2,948,369			37.28
Total deposits		4,925,934			5,024,063			4,838,797			3,934,073			3,515,539			3,492,761			40.12		4,974,727			3,504,213			41.96
Borrowed funds		169,373			170,091			173,583			189,909			164,894			163,981			2.72		169,730			164,440			3.22
Shareholders' equity		686,794			673,047			665,513			553,772			506,225			501,634			35.67		679,959			503,942			34.93


																				Q2 2014 -		As of
		2014						2013												Q4 2013		June 30,
		Second			First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2014			2013			Variance
Balances at period end
Total assets		$	5,826,020		$	5,902,831		$	5,746,270		$	5,735,865		$	4,242,401		$	4,267,658		1.39		$	5,826,020		$	4,242,401		37.33
Earning assets		5,069,743			5,168,996			4,999,434			4,972,051			3,715,321			3,706,707			1.41		5,069,743			3,715,321			36.46
Securities		1,013,200			1,054,511			925,670			915,869			746,530			740,613			9.46		1,013,200			746,530			35.72
Mortgage loans held for sale		28,116			28,433			33,440			28,466			50,268			26,286			(15.92	)	28,116			50,268			(44.07	)
Loans acquired from M&F		694,115			746,047			813,451			891,420			—			—			(14.67	)	694,115			—
Loans not acquired		3,096,286			2,947,836			2,885,802			2,794,116			2,683,017			2,594,438			7.29		3,096,286			2,683,017			15.40
Loans acquired and subject to loss share		167,129			173,545			181,765			195,996			201,494			213,872			(8.05	)	167,129			201,494			(17.06	)
	Total loans	3,957,530			3,867,428			3,881,018			3,881,532			2,884,511			2,808,310			1.97		3,957,530			2,884,511			37.20
Intangibles		301,478			302,903			304,330			305,065			190,208			190,522			(0.94	)	301,478			190,208			58.50
Noninterest-bearing deposits		$	902,766		$	914,964		$	856,020		$	876,138		$	560,965		$	567,065		5.46		$	902,766		$	560,965		60.93
Interest-bearing deposits		3,983,965			4,089,820			3,985,892			3,958,618			2,944,193			2,988,110			(0.05	)	3,983,965			2,944,193			35.32
	Total deposits	4,886,731			5,004,784			4,841,912			4,834,756			3,505,158			3,555,175			0.93		4,886,731			3,505,158			39.42
Borrowed funds		189,831			168,700			171,875			177,168			195,789			164,063			10.45		189,831			195,789			(3.04	)
Shareholders' equity		688,215			676,715			665,652			657,256			500,678			502,375			3.39		688,215			500,678			37.46
Market value per common share		$	29.07		$	29.05		$	31.46		$	27.17		$	24.34		$	22.38		(7.60	)	$	29.07		$	24.34		19.43
Book value per common share		21.83			21.50			21.21			20.96			19.84			19.93			2.92		21.83			19.84			10.03
Tangible book value per common share		12.27			11.87			11.51			11.23			12.31			12.37			6.60		12.27			12.31			(0.32	)
Shareholders' equity to assets (actual)		11.81		%	11.46		%	11.58		%	11.46		%	11.80		%	11.77		%	1.99		11.81		%	11.80		%	0.08
Tangible capital ratio		7.00		%	6.68		%	6.64		%	6.49		%	7.66		%	7.65		%	5.42		7.00		%	7.66		%	(8.62	)
Leverage ratio		8.91		%	8.56		%	8.68		%	8.61		%	9.83		%	9.79		%	2.65		8.91		%	9.83		%	(9.36	)
Tier 1 risk-based capital ratio		11.82		%	11.55		%	11.41		%	11.34		%	12.87		%	12.86		%	3.59		11.82		%	12.87		%	(8.16	)
Total risk-based capital ratio		12.96		%	12.72		%	12.58		%	12.47		%	14.14		%	14.13		%	3.02		12.96		%	14.14		%	(8.35	)



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																				Q2 2014 -		As of
	2014						2013													Q4 2013		June 30,
	Second			First			Fourth			Third			Second				First			Percent								Percent
	Quarter			Quarter			Quarter			Quarter			Quarter				Quarter			Variance		2014			2013			Variance
Loans not acquired
Commercial, financial, agricultural	$	365,262		$	347,828		$	341,600		$	331,142		$	307,718			$	298,013		6.93		$	365,262		$	307,718		18.70
Lease Financing	1,767			612			52			75			103				162			3,298.08		1,767			103			1,615.53
Real estate- construction	172,319			149,450			147,075			127,013			117,339				109,484			17.16		172,319			117,339			46.86
Real estate - 1-4 family mortgages	966,546			941,260			928,803			891,422			859,884				834,204			4.06		966,546			859,884			12.40
Real estate - commercial mortgages	1,516,372			1,441,403			1,404,617			1,383,680			1,335,402				1,295,213			7.96		1,516,372			1,335,402			13.55
Installment loans to individuals	74,020			67,283			63,655			60,784			62,571				57,362			16.28		74,020			62,571			18.30
Loans, net of unearned	$	3,096,286		$	2,947,836		$	2,885,802		$	2,794,116		$	2,683,017			$	2,594,438		7.29		$	3,096,286		$	2,683,017		15.40
Loans acquired and subject to loss share
Commercial, financial, agricultural	$	7,677		$	8,283		$	9,546		$	10,280		$	10,283			$	10,157		(19.58	)	$	7,677		$	10,283		(25.34	)
Lease Financing	—			—			—			—			—				—			—		—			—			—
Real estate- construction	1,648			1,648			1,648			1,648			1,648				1,648			—		1,648			1,648			—
Real estate - 1-4 family mortgages	49,616			52,252			54,466			56,722			60,409				65,489			(8.90	)	49,616			60,409			(17.87	)
Real estate - commercial mortgages	108,166			111,337			116,077			127,315			129,120				136,541			(6.82	)	108,166			129,120			(16.23	)
Installment loans to individuals	22			25			28			31			34				37			(21.43	)	22			34			(35.29	)
Loans, net of unearned	$	167,129		$	173,545		$	181,765		$	195,996		$	201,494			$	213,872		(8.05	)	$	167,129		$	201,494		(17.06	)
Loans acquired from M&F
Commercial, financial, agricultural	$	74,887		$	84,004		$	117,817		$	139,821		$	—			$	—		(36.44	)	$	74,887		$	—		—
Lease Financing	—			—			—			—			—				—			—		—			—			—
Real estate- construction	2,610			4,803			12,713			23,556			—				—			(79.47	)	2,610			—			—
Real estate - 1-4 family mortgages	205,126			217,748			224,965			244,079			—				—			(8.82	)	205,126			—			—
Real estate - commercial mortgages	390,781			415,418			429,878			449,589			—				—			(9.09	)	390,781			—			—
Installment loans to individuals	20,711			24,074			28,078			34,375			—				—			(26.24	)	20,711			—			—
Loans, net of unearned	$	694,115		$	746,047		$	813,451		$	891,420		$	—			$	—		(14.67	)	$	694,115		$	—		—
Asset quality data
Assets not acquired:
Nonaccrual loans	$	17,175		$	18,365		$	16,863		$	19,995		$	20,554			$	25,382		1.85		$	17,175		$	20,554		(16.44	)
Loans 90 past due or more	3,615			1,322			2,287			2,078			1,983				2,601			58.07		3,615			1,983			82.30
Nonperforming loans	20,790			19,687			19,150			22,073			22,537				27,983			8.56		20,790			22,537			(7.75	)
Other real estate owned	23,950			25,117			27,543			27,357			33,247				39,786			(13.05	)	23,950			33,247			(27.96	)
Nonperforming assets not acquired	$	44,740		$	44,804		$	46,693		$	49,430		$	55,784			$	67,769		(4.18	)	$	44,740		$	55,784		(19.80	)
Assets acquired and subject to loss share:
Nonaccrual loans	$	41,425		$	46,078		$	49,194		$	49,585		$	47,281		#	$	47,972		(15.79	)	$	41,425		$	47,281		(12.39	)
Loans 90 past due or more	—			32			—			505			126			#	—			—		—			126			(100.00	)
Nonperforming loans	41,425			46,110			49,194			50,090			47,407			#	47,972			(15.79	)	41,425			47,407			(12.62	)
Other real estate owned	7,472			10,218			12,942			16,580			27,835			#	35,095			(42.27	)	7,472			27,835			(73.16	)
Nonperforming assets acquired and subject to loss share	$	48,897		$	56,328		$	62,136		$	66,670		$	75,242		#	$	83,067		(21.31	)	$	48,897		$	75,242		(35.01	)
Assets acquired from M&F:
Nonaccrual loans	$	5,966		$	6,393		$	6,275		$	224		$	—		#	$	—		(4.92	)	$	5,966		$	—		—
Loans 90 past due or more	5,057			1,922			1,899			8,568			—			#	—			166.30		5,057			—			—
Nonperforming loans	11,023			8,315			8,174			8,792			—			#	—			34.85		11,023			—			—
Other real estate owned	10,381			12,406			12,402			13,223			—			#	—			(16.30	)	10,381			—			—
Nonperforming assets acquired from M&F	$	21,404		$	20,721		$	20,576		$	22,015		$	—		#	$	—		4.02		$	21,404		$	—		—
Net loan charge-offs (recoveries)	$	2,195		$	1,067		$	584		$	3,084		$	2,471			$	893		275.86		$	3,262		$	3,364		(3.03	)
Allowance for loan losses	47,304			48,048			47,666			46,250			47,034				46,505			(0.76	)	47,304			47,034			0.57
Annualized net loan charge-offs / average loans	0.23		%	0.11		%	0.06		%	0.38		%	0.35		%		0.13		%			0.17		%	0.24		%
Nonperforming loans / total loans*	1.85		%	1.92		%	0.74		%	0.84		%	0.84		%		1.08		%			1.85		%	2.42		%
Nonperforming assets / total assets*	1.97		%	2.06		%	1.17		%	1.25		%	1.31		%		1.59		%			1.97		%	3.09		%
Allowance for loan losses / total loans*	1.20		%	1.24		%	1.29		%	1.25		%	1.75		%		1.79		%			1.20		%	1.63		%
Allowance for loan losses / nonperforming loans*	64.59		%	64.83		%	174.45		%	149.85		%	208.70		%		166.19		%			64.59		%	67.25		%
Nonperforming loans / total loans**	0.67		%	0.67		%	0.66		%	0.79		%	0.84		%		1.08		%			0.67		%	0.84		%
Nonperforming assets / total assets**	0.77		%	0.76		%	0.81		%	0.86		%	1.31		%		1.59		%			0.77		%	1.31		%
Allowance for loan losses / total loans**	1.53		%	1.63		%	1.65		%	1.66		%	1.75		%		1.79		%			1.53		%	1.75		%
Allowance for loan losses / nonperforming loans**	227.53		%	244.06		%	248.91		%	209.53		%	208.70		%		166.19		%			227.53		%	208.70		%
*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
		2014						2013												June 30,
		Second			First			Fourth			Third			Second			First
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			2014			2013
Net income (GAAP)		$	14,853		$	13,597		$	11,260		$	6,637		$	8,019		$	7,571		$	28,450		$	15,590
	Amortization of intangibles, net of tax	1,019			1,026			1,069			548			229			242			2,047			471
Tangible net income (non-GAAP)		$	15,872		$	14,623		$	12,329		$	7,185		$	8,248		$	7,813		$	30,497		$	16,061

Average shareholders' equity (GAAP)		$	686,794		$	673,047		$	665,513		$	553,772		$	506,225		$	501,634		$	679,959		$	503,942
	Intangibles	302,181			303,599			304,388			227,606			190,362			190,787			302,886			190,573
Average tangible s/h's equity (non-GAAP)		$	384,613		$	369,448		$	361,125		$	326,166		$	315,863		$	310,847		$	377,073		$	313,369

Average total assets (GAAP)		$	5,836,607		$	5,927,920		$	5,741,794		$	4,729,079		$	4,231,947		$	4,206,411		$	5,881,993		$	4,219,250
	Intangibles	302,181			303,599			304,388			227,606			190,362			190,787			302,886			190,573
Average tangible assets (non-GAAP)		$	5,534,426		$	5,624,321		$	5,437,406		$	4,501,473		$	4,041,585		$	4,015,624		$	5,579,107		$	4,028,677

Actual total assets (GAAP)		$	5,826,020		$	5,906,071		$	5,746,270		$	5,735,865		$	4,242,401		$	4,267,658		$	5,826,020		$	4,242,401
	Intangibles	301,478			302,903			304,330			305,065			190,208			190,522			301,478			190,208
Actual tangible assets (non-GAAP)		$	5,524,542		$	5,603,168		$	5,441,940		$	5,430,800		$	4,052,193		$	4,077,136		$	5,524,542		$	4,052,193

(1) Return on Average Equity
Return on avg s/h's equity (GAAP)		8.67		%	8.19		%	6.71		%	4.75		%	6.35		%	6.12		%	8.44		%	6.24		%
	Effect of adjustment for intangible assets	7.88		%	7.86		%	6.83		%	3.98		%	4.12		%	4.07		%	7.87		%	4.10		%
Return on avg tangible s/h's equity (non-GAAP)		16.55		%	16.05		%	13.55		%	8.74		%	10.47		%	10.19		%	16.31		%	10.34		%

(2) Return on Average Assets
Return on (average) assets (GAAP)		1.02		%	0.93		%	0.78		%	0.56		%	0.76		%	0.73		%	0.98		%	0.75		%
	Effect of adjustment for intangible assets	0.13		%	0.12		%	0.12		%	0.08		%	0.06		%	0.06		%	0.13		%	0.06		%
Return on average tangible assets (non-GAAP)		1.15		%	1.05		%	0.90		%	0.63		%	0.82		%	0.79		%	1.10		%	0.80		%

(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP)		11.81		%	11.46		%	11.58		%	11.46		%	11.80		%	11.77		%	11.81		%	11.80		%
	Effect of adjustment for intangible assets	4.81		%	4.79		%	4.94		%	4.97		%	4.14		%	4.12		%	4.81		%	4.14		%
Tangible capital ratio (non-GAAP)		7.00		%	6.68		%	6.64		%	6.49		%	7.66		%	7.65		%	7.00		%	7.66		%

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