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 Third Quarter Earnings

TUPELO, MISSISSIPPI (October 21, 2014) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced its financial results for the third quarter of 2014. Net income for the third quarter of 2014 increased to $15,535,000, or basic and diluted earnings per share (“EPS”) of $0.49, as compared to $6,637,000, or basic and diluted EPS of $0.24, for the third quarter of 2013. The Company’s balance sheet and results of operations as of and for the three months ending September 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 third quarter of 2014, the Company’s return on average assets and return on average equity were 1.07% and 8.84%, respectively, as compared to 0.56% and 4.75%, respectively, for the third quarter of 2013. The Company’s 2014 third quarter return on average tangible assets and return on

average tangible equity were 1.20% and 16.50%, respectively, as compared to 0.63% and 8.74%, respectively, for the third quarter of 2013.

“Our financial results for the three and nine month-periods ending September 30, 2014, reflect the continued execution of our long-term strategies, specifically higher levels of earnings and improved profitability. Our earnings per share of 49 cents represent our highest quarterly earnings in the 110-year history of our company, excluding periods which included one-time gains associated with acquisitions. In addition, our return on average assets for the quarter was 1.07%, which marks the second consecutive quarter of exceeding the 1% threshold, while our year-to-date return on average assets was 1.01%,” commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. “These accomplishments were driven by strong non-acquired loan growth and a continued focus on revenue growth while at the same time

managing expenses.”

Total assets as of September 30, 2014, were approximately $5.75 billion, as compared to $5.75 billion from December 31, 2013, and $5.83 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 September 30, 2014, as compared to $3.88 billion at December 31, 2013, and $3.96 billion on a linked quarter basis. Excluding acquired loans, loans grew $280 million, or 12.92% annualized, to $3.17 billion at September 30, 2014, as compared to $2.89 billion at December 31, 2013, and increased $69 million, or 8.87% annualized, from $3.09 billion on a linked quarter basis.

Total deposits were $4.76 billion at September 30, 2014, as compared to $4.84 billion at December 31, 2013, and $4.89 billion on a linked quarter basis, the decrease being due to the seasonal runoff of deposits noted above. Noninterest-bearing deposits averaged approximately $896.9 million, which represents 18.74% of the Company’s average deposits, for the third quarter of 2014, as compared to $660.4 million, or 16.79% of average deposits, for the third quarter of 2013. The Company’s cost of funds was 47 basis points for the third quarter of 2014, as compared to 57 basis points for the same quarter in 2013.

As of September 30, 2014, the Company's Tier 1 leverage capital ratio was 9.31%, its Tier 1 risk-based capital ratio was 12.28%, and its total risk-based capital ratio was 13.43%. The Company’s tangible common equity ratio was 7.37%. 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 $50.5 million for the third quarter of 2014, as compared to $38.7 million for the third quarter of 2013, and $52.2 million on a linked quarter basis. Net interest margin was 4.12% for the third quarter of 2014, as compared to 3.86% for the third quarter of 2013, and 4.24% on a linked quarter basis. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans increased net interest margin 11 basis points in the third quarter of 2014, as compared to 28 basis points on a linked quarter basis. The Company did not record any additional interest income in connection with accelerated paydowns and paydowns from acquired loans in the third quarter of 2013.

Noninterest income was $22.6 million for the third quarter of 2014, as compared to $18.9 million for the third quarter of 2013, and $19.5 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. 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 $48.2 million for the third quarter of 2014, as compared to $46.6 million for the third 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. On a linked quarter comparison, noninterest expense decreased by $1.2 million, or 2.47%, due primarily to a decrease in salaries and employee benefits and other noninterest expenses. The decrease in other noninterest expenses is due to a reduction in professional fees, communication and marketing expenses.

At September 30, 2014, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $71.8 million and total OREO was $34.1 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 $45.6 million and $13.6 million, respectively, at September 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 $26.2 million as of September 30, 2014, as compared to $19.2 million as of December 31, 2013. Nonperforming loans as a percentage of total loans were 0.83% as of September 30, 2014, as compared to 0.66% as of December 31, 2013. The increase in

nonperforming loans at September 30, 2014, was primarily due to a $4.7 million matured loan, which carried 90 days past due, that was brought current and renewed subsequent to quarter end.

Annualized net charge-offs as a percentage of average loans were 0.50% for the third quarter of 2014, as compared to 0.38% for the third quarter of 2013. The Company recorded a provision for loan losses of $2.2 million for the third quarter of 2014, as compared to $2.3 million for the third quarter of 2013.

The allowance for loan losses totaled $44.6 million at September 30, 2014, as compared to $47.7 million as of December 31, 2013. The allowance for loan losses as a percentage of loans was 1.41% as of September 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 169.81% as of September 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 September 30, 2014, as compared to 0.31% at December 31, 2013. OREO was $20.5 million as of September 30, 2014, as compared to $27.5 million as of December 31, 2013.

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, October 22, 2014.

The webcast and call can be accessed by pre-registering (preferred method) at http://dpregister.com/10054202 or http://services.choruscall.com/links/rnst141022.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant

Corporation Third 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 10054202 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until November 6, 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)
																							Q3 2014 -		For The Nine Months Ending
		2014									2013												Q3 2013		September 30,
		Third			Second			First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2014			2013			Variance
Statement of earnings
Interest income - taxable equivalent basis		$	58,098		$	60,002		$	57,811		$	58,644		$	46,083		$	41,331		$	40,371		26.07		$	175,911		$	127,785		37.66
Interest income		$	56,359		$	58,277		$	56,177		$	57,076		$	44,638		$	39,945		$	38,945		26.26		$	170,813		$	123,528		38.28
Interest expense		5,886			6,108			6,206			6,408			5,890			5,541			5,564			(0.07	)	18,200			16,995			7.09
	Net interest income	50,473			52,169			49,971			50,668			38,748			34,404			33,381			30.26		152,613			106,533			43.25
Provision for loan losses		2,217			1,450			1,450			2,000			2,300			3,000			3,050			(3.61	)	5,117			8,350			(38.72	)
	Net interest income after provision	48,256			50,719			48,521			48,668			36,448			31,404			30,331			32.40		147,496			98,183			50.23
Service charges on deposit accounts		6,747			6,194			5,915			6,165			5,361			4,509			4,500			25.85		18,856			14,370			31.22
Fees and commissions on loans and deposits		6,236			5,515			4,972			5,300			4,982			4,848			4,831			25.17		16,723			14,661			14.06
Insurance commissions and fees		2,270			2,088			1,863			1,869			1,295			951			861			75.29		6,221			3,107			100.23
Wealth management revenue		2,197			2,170			2,144			2,124			2,091			1,715			1,724			5.07		6,511			5,530			17.74
Securities gains (losses)		375			—			—			—			—			—			54			—		375			54			594.44
Gain on sale of mortgage loans		2,635			2,005			1,586			1,350			2,788			3,870			3,565			(5.49	)	6,226			10,223			(39.10	)
Gain on acquisition		—			—			—			—			—			—			—			—		—			—			—
Other		2,102			1,499			2,136			1,533			2,418			1,424			1,843			(13.07	)	5,737			5,685			0.91
	Total noninterest income	22,562			19,471			18,616			18,341			18,935			17,317			17,378			19.16		60,649			53,630			13.09
Salaries and employee benefits		29,569			29,810			28,428			29,911			25,689			21,906			21,274			15.10		87,807			68,869			27.50
Data processing		2,906			2,850			2,695			2,546			2,236			2,045			2,043			29.96		8,451			6,324			33.63
Occupancy and equipment		5,353			4,906			4,847			5,105			4,576			3,668			3,608			16.98		15,106			11,852			27.46
Other real estate		1,101			1,068			1,701			1,607			1,537			1,773			2,049			(28.37	)	3,870			5,359			(27.79	)
Amortization of intangibles		1,381			1,427			1,471			1,508			724			314			323			90.75		4,279			1,361			214.40
Merger-related expenses		—			—			195			1,879			3,763			385			—			(100.00	)	195			4,148			(95.30	)
Debt extinguishment penalty		—			—			—			—			—			—			—			—		—			—			—
Other		7,865			9,335			8,308			8,573			8,088			7,643			8,303			(2.76	)	25,508			24,034			6.13
	Total noninterest expense	48,175			49,396			47,645			51,129			46,613			37,734			37,600			3.35		145,216			121,947			19.08
Income before income taxes		22,643			20,794			19,492			15,880			8,770			10,987			10,109			158.19		62,929			29,866			110.70
Income taxes		7,108			5,941			5,895			4,620			2,133			2,968			2,538			233.24		18,944			7,639			147.99
	Net income	$	15,535		$	14,853		$	13,597		$	11,260		$	6,637		$	8,019		$	7,571		134.08		$	43,985		$	22,227		97.89
Basic earnings per share		$	0.49		$	0.47		$	0.43		$	0.36		$	0.24		$	0.32		$	0.30		104.17		$	1.40		$	0.86		62.79
Diluted earnings per share		0.49			0.47			0.43			0.36			0.24			0.32			0.30			104.17		1.39			0.85			63.53
Average basic shares outstanding		31,526,423			31,496,737			31,436,148			31,366,019			27,234,927			25,223,749			25,186,229			15.76		31,486,767			25,889,139			21.62
Average diluted shares outstanding		31,718,529			31,698,198			31,724,474			31,617,681			27,447,382			25,373,868			25,288,785			15.56		31,694,601			26,053,173			21.65
Common shares outstanding		31,533,703			31,519,541			31,480,395			31,387,668			31,358,583			25,231,074			25,208,733			0.56		31,533,703			31,358,583			0.56
Cash dividend per common share		$	0.17		$	0.17		$	0.17		$	0.17		$	0.17		$	0.17		$	0.17		—		$	0.51		$	0.51		—
Performance ratios
Return on average shareholders' equity		8.84		%	8.67		%	8.19		%	6.71		%	4.75		%	6.35		%	6.12		%			8.58		%	5.71		%
Return on average tangible shareholders' equity (1)		16.50		%	16.55		%	16.05		%	13.55		%	8.74		%	10.47		%	10.19		%			16.37		%	9.78		%
Return on average assets		1.07		%	1.02		%	0.93		%	0.78		%	0.56		%	0.76		%	0.73		%			1.01		%	0.68		%
Return on average tangible assets (2)		1.20		%	1.15		%	1.05		%	0.90		%	0.63		%	0.82		%	0.79		%			1.13		%	0.74		%
Net interest margin (FTE)		4.12		%	4.24		%	4.04		%	4.16		%	3.86		%	3.88		%	3.89		%			4.13		%	3.88		%
Yield on earning assets (FTE)		4.58		%	4.72		%	4.53		%	4.67		%	4.42		%	4.49		%	4.51		%			4.61		%	4.47		%
Cost of funding		0.47		%	0.48		%	0.48		%	0.51		%	0.57		%	0.60		%	0.62		%			0.48		%	0.59		%
Average earning assets to average assets		87.32		%	87.39		%	87.35		%	86.78		%	87.43		%	87.32		%	86.31		%			87.35		%	87.04		%
Average loans to average deposits		82.26		%	79.11		%	77.00		%	79.89		%	81.69		%	80.93		%	80.30		%			79.44		%	81.00		%
Noninterest income (less securities gains/
	losses) to average assets	1.53		%	1.34		%	1.27		%	1.27		%	1.59		%	1.64		%	1.67		%			1.38		%	1.63		%
Noninterest expense (less debt prepayment penalties/
	merger-related expenses) to average assets	3.32		%	3.39		%	3.25		%	3.40		%	3.59		%	3.54		%	3.63		%			3.32		%	3.59		%
Net overhead ratio		1.79		%	2.06		%	1.97		%	2.14		%	2.01		%	1.90		%	1.95		%			1.94		%	1.96		%
Efficiency ratio (FTE) (4)		62.90		%	65.38		%	65.48		%	67.65		%	71.25		%	69.74		%	71.51		%			64.56		%	70.84		%



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																							Q3 2014 -		For The Nine Months Ending
		2014									2013												Q3 2013		September 30,
		Third			Second			First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2014			2013			Variance
Average Balances
Total assets		$	5,758,081		$	5,836,607		$	5,927,884		$	5,741,794		$	4,729,079		$	4,231,947		$	4,206,411		21.76		$	5,840,232		$	4,391,370		32.99
Earning assets		5,027,805			5,100,834			5,178,069			4,982,614			4,134,730			3,695,409			3,630,759			21.60		5,101,686			3,822,145			33.48
Securities		1,001,547			1,026,948			1,002,519			924,179			819,351			754,515			698,863			22.24		1,010,335			758,018			33.29
Mortgage loans held for sale		31,832			26,004			19,925			25,248			37,056			32,318			22,347			(14.10	)	25,964			30,627			(15.23	)
Loans, net of unearned		3,937,142			3,897,028			3,868,747			3,865,615			3,213,853			2,845,260			2,804,618			22.51		3,901,223			2,956,076			31.97
Intangibles		300,725			302,181			303,599			304,388			227,606			190,362			190,787			32.13		302,158			203,053			48.81
Noninterest-bearing deposits		896,856			905,180			949,317			888,888			660,415			562,104			549,514			35.80		916,926			591,394			55.04
Interest-bearing deposits		3,889,132			4,020,754			4,074,746			3,949,909			3,273,658			2,953,435			2,943,247			18.80		3,994,197			3,057,991			30.62
Total deposits		4,785,988			4,925,934			5,024,063			4,838,797			3,934,073			3,515,539			3,492,761			21.65		4,911,123			3,649,385			34.57
Borrowed funds		214,017			169,373			170,091			173,583			189,909			164,894			163,981			12.69		184,655			173,023			6.72
Shareholders' equity		697,103			686,794			673,047			665,513			553,772			506,225			501,634			25.88		685,733			520,734			31.69


																							Q3 2014 -		As of
		2014									2013												Q4 2013		September 30,
		Third			Second			First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2014			2013			Variance
Balances at period end
Total assets		$	5,751,711		$	5,826,020		$	5,902,831		$	5,746,270		$	5,735,865		$	4,242,401		$	4,267,658		0.09		$	5,751,711		$	5,735,865		0.28
Earning assets		5,058,094			5,069,743			5,168,996			4,999,434			4,972,051			3,715,321			3,706,707			1.17		5,058,094			4,972,051			1.73
Securities		985,170			1,013,200			1,054,511			925,670			915,869			746,530			740,613			6.43		985,170			915,869			7.57
Mortgage loans held for sale		30,451			28,116			28,433			33,440			28,466			50,268			26,286			(8.94	)	30,451			28,466			6.97
Loans acquired from M&F		636,628			694,115			746,047			813,451			891,420			—			—			(21.74	)	636,628			891,420			(28.58	)
Loans not acquired		3,165,492			3,096,286			2,947,836			2,885,802			2,794,116			2,683,017			2,594,438			9.69		3,165,492			2,794,116			13.29
Loans acquired and subject to loss share		155,319			167,129			173,545			181,765			195,996			201,494			213,872			(14.55	)	155,319			195,996			(20.75	)
	Total loans	3,957,439			3,957,530			3,867,428			3,881,018			3,881,532			2,884,511			2,808,310			1.97		3,957,439			3,881,532			1.96
Intangibles		298,609			301,478			302,903			304,330			305,065			190,208			190,522			(1.88	)	298,609			305,065			(2.12	)
Noninterest-bearing deposits		935,544			902,766			914,964			856,020			876,138			560,965			567,065			9.29		935,544			876,138			6.78
Interest-bearing deposits		3,828,126			3,983,965			4,089,820			3,985,892			3,958,618			2,944,193			2,988,110			(3.96	)	3,828,126			3,958,618			(3.30	)
	Total deposits	4,763,670			4,886,731			5,004,784			4,841,912			4,834,756			3,505,158			3,555,175			(1.62	)	4,763,670			4,834,756			(1.47	)
Borrowed funds		227,664			189,831			168,700			171,875			177,168			195,789			164,063			32.46		227,664			177,168			28.50
Shareholders' equity		700,475			688,215			676,715			665,652			657,256			500,678			502,375			5.23		700,475			657,256			6.58
Market value per common share		$	27.05		$	29.07		$	29.05		$	31.46		$	27.17		$	24.34		$	22.38		(14.02	)	$	27.05		$	27.17		(0.44	)
Book value per common share		22.21			21.83			21.50			21.21			20.96			19.84			19.93			4.71		22.21			20.96			5.96
Tangible book value per common share		12.74			12.27			11.87			11.51			11.23			12.31			12.37			10.69		12.74			11.23			13.45
Shareholders' equity to assets (actual)		12.18		%	11.81		%	11.46		%	11.58		%	11.46		%	11.80		%	11.77		%	5.18		12.18		%	11.46		%	6.28
Tangible capital ratio (3)		7.37		%	7.00		%	6.68		%	6.64		%	6.49		%	7.66		%	7.65		%	10.99		7.37		%	6.49		%	13.64
Leverage ratio		9.31		%	8.91		%	8.56		%	8.68		%	8.66		%	9.83		%	9.79		%	7.26		9.31		%	8.66		%	7.51
Tier 1 risk-based capital ratio		12.28		%	11.82		%	11.55		%	11.41		%	11.40		%	12.87		%	12.86		%	7.62		12.28		%	11.40		%	7.72
Total risk-based capital ratio		13.43		%	12.96		%	12.72		%	12.58		%	12.53		%	14.14		%	14.13		%	6.76		13.43		%	12.53		%	7.18



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																						Q3 2014 -		As of
	2014									2013												Q4 2013		September 30,
	Third			Second			First			Fourth			Third			Second			First			Percent								Percent
	Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2014			2013			Variance
Loans not acquired
Commercial, financial, agricultural	$	378,802		$	365,262		$	347,828		$	341,600		$	331,142		$	307,718		$	298,013		10.89		$	378,802		$	331,142		14.39
Lease Financing	5,377			1,767			612			52			75			103			162			10,240.38		5,377			75			7,069.33
Real estate- construction	193,787			172,319			149,450			147,075			127,013			117,339			109,484			31.76		193,787			127,013			52.57
Real estate - 1-4 family mortgages	984,778			966,546			941,260			928,803			891,422			859,884			834,204			6.03		984,778			891,422			10.47
Real estate - commercial mortgages	1,527,680			1,516,372			1,441,403			1,404,617			1,383,680			1,335,402			1,295,213			8.76		1,527,680			1,383,680			10.41
Installment loans to individuals	75,068			74,020			67,283			63,655			60,784			62,571			57,362			17.93		75,068			60,784			23.50
Loans, net of unearned	$	3,165,492		$	3,096,286		$	2,947,836		$	2,885,802		$	2,794,116		$	2,683,017		$	2,594,438		9.69		$	3,165,492		$	2,794,116		13.29
Loans acquired and subject to loss share
Commercial, financial, agricultural	$	7,698		$	7,677		$	8,283		$	9,546		$	10,280		$	10,283		$	10,157		(19.36	)	$	7,698		$	10,280		(25.12	)
Lease Financing	—			—			—			—			—			—			—			—		—			—			—
Real estate- construction	1,648			1,648			1,648			1,648			1,648			1,648			1,648			—		1,648			1,648			—
Real estate - 1-4 family mortgages	46,354			49,616			52,252			54,466			56,722			60,409			65,489			(14.89	)	46,354			56,722			(18.28	)
Real estate - commercial mortgages	99,580			108,166			111,337			116,077			127,315			129,120			136,541			(14.21	)	99,580			127,315			(21.78	)
Installment loans to individuals	39			22			25			28			31			34			37			39.29		39			31			25.81
Loans, net of unearned	$	155,319		$	167,129		$	173,545		$	181,765		$	195,996		$	201,494		$	213,872		(14.55	)	$	155,319		$	195,996		(20.75	)
Loans acquired from M&F
Commercial, financial, agricultural	$	64,058		$	74,887		$	84,004		$	117,817		$	139,821		$	—		$	—		(45.63	)	$	64,058		$	139,821		(54.19	)
Lease Financing	—			—			—			—			—			—			—			—		—			—			—
Real estate- construction	1,631			2,610			4,803			12,713			23,556			—			—			(87.17	)	1,631			23,556			(93.08	)
Real estate - 1-4 family mortgages	190,447			205,126			217,748			224,965			244,079			—			—			(15.34	)	190,447			244,079			(21.97	)
Real estate - commercial mortgages	363,793			390,781			415,418			429,878			449,589			—			—			(15.37	)	363,793			449,589			(19.08	)
Installment loans to individuals	16,699			20,711			24,074			28,078			34,375			—			—			(40.53	)	16,699			34,375			(51.42	)
Loans, net of unearned	$	636,628		$	694,115		$	746,047		$	813,451		$	891,420		$	—		$	—		(21.74	)	$	636,628		$	891,420		(28.58	)
Asset quality data
Assets not acquired:
Nonaccrual loans	$	19,070		$	17,175		$	18,365		$	16,863		$	19,995		$	20,554		$	25,382		13.09		$	19,070		$	19,995		(4.63	)
Loans 90 past due or more	7,177			3,615			1,322			2,287			2,078			1,983			2,601			213.82		7,177			2,078			245.38
Nonperforming loans	26,247			20,790			19,687			19,150			22,073			22,537			27,983			37.06		26,247			22,073			18.91
Other real estate owned	20,461			23,950			25,117			27,543			27,357			33,247			39,786			(25.71	)	20,461			27,357			(25.21	)
Nonperforming assets not acquired	$	46,708		$	44,740		$	44,804		$	46,693		$	49,430		$	55,784		$	67,769		0.03		$	46,708		$	49,430		(5.51	)
Assets acquired and subject to loss share:
Nonaccrual loans	$	33,216		$	41,425		$	46,078		$	49,194		$	49,585		$	47,281		$	47,972		(32.48	)	$	33,216		$	49,585		(33.01	)
Loans 90 past due or more	1,979			—			32			—			505			126			—			—		1,979			505			291.88
Nonperforming loans	35,195			41,425			46,110			49,194			50,090			47,407			47,972			(28.46	)	35,195			50,090			(29.74	)
Other real estate owned	4,033			7,472			10,218			12,942			16,580			27,835			35,095			(68.84	)	4,033			16,580			(75.68	)
Nonperforming assets acquired and subject to loss share	$	39,228		$	48,897		$	56,328		$	62,136		$	66,670		$	75,242		$	83,067		(36.87	)	$	39,228		$	66,670		(41.16	)
Assets acquired from M&F:
Nonaccrual loans	$	1,991		$	5,966		$	6,393		$	6,275		$	224		$	—		$	—		(68.27	)	$	1,991		$	224		788.84
Loans 90 past due or more	8,375			5,057			1,922			1,899			8,568			—			—			341.02		8,375			8,568			(2.25	)
Nonperforming loans	10,366			11,023			8,315			8,174			8,792			—			—			26.82		10,366			8,792			17.90
Other real estate owned	9,565			10,381			12,406			12,402			13,223			—			—			(22.88	)	9,565			13,223			(27.66	)
Nonperforming assets acquired from M&F	$	19,931		$	21,404		$	20,721		$	20,576		$	22,015		$	—		$	—		(3.13	)	$	19,931		$	22,015		(9.47	)
Net loan charge-offs (recoveries)	$	4,952		$	2,195		$	1,067		$	584		$	3,084		$	2,471		$	893		747.95		$	8,214		$	6,448		27.39
Allowance for loan losses	44,569			47,304			48,048			47,665			46,250			47,034			46,505			(6.50	)	44,569			46,250			(3.63	)
Annualized net loan charge-offs / average loans	0.50		%	0.23		%	0.11		%	0.06		%	0.38		%	0.35		%	0.13		%			0.28		%	0.29		%
Nonperforming loans / total loans*	1.81		%	1.85		%	1.92		%	1.97		%	2.09		%	2.42		%	2.70		%			1.81		%	2.09		%
Nonperforming assets / total assets*	1.84		%	1.97		%	2.06		%	2.25		%	2.41		%	3.09		%	3.53		%			1.84		%	2.41		%
Allowance for loan losses / total loans*	1.13		%	1.20		%	1.24		%	1.23		%	1.19		%	1.63		%	1.66		%			1.13		%	1.19		%
Allowance for loan losses / nonperforming loans*	62.07		%	64.59		%	64.83		%	62.29		%	57.13		%	67.25		%	61.23		%			62.07		%	57.13		%
Nonperforming loans / total loans**	0.83		%	0.67		%	0.67		%	0.66		%	0.79		%	0.84		%	1.08		%			0.83		%	0.79		%
Nonperforming assets / total assets**	0.81		%	0.77		%	0.76		%	0.81		%	0.86		%	1.31		%	1.59		%			0.81		%	0.86		%
Allowance for loan losses / total loans**	1.41		%	1.53		%	1.63		%	1.65		%	1.66		%	1.75		%	1.79		%			1.41		%	1.66		%
Allowance for loan losses / nonperforming loans**	169.81		%	227.53		%	244.06		%	248.90		%	209.53		%	208.70		%	166.19		%			169.81		%	209.53		%
*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 Nine Months Ending
		2014									2013												September 30,
		Third			Second			First			Fourth			Third			Second			First
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			2014			2013
Net income (GAAP)		$	15,535		$	14,853		$	13,597		$	11,260		$	6,637		$	8,019		$	7,571		$	43,985		$	22,227
	Amortization of intangibles, net of tax	947			1,019			1,026			1,069			548			229			242			2,992			1,019
Tangible net income (non-GAAP)		$	16,482		$	15,872		$	14,623		$	12,329		$	7,185		$	8,248		$	7,813		$	46,977		$	23,246

Average shareholders' equity (GAAP)		$	697,103		$	686,794		$	673,047		$	665,513		$	553,772		$	506,225		$	501,634		$	685,733		$	520,734
	Intangibles	300,725			302,181			303,599			304,388			227,606			190,362			190,787			302,158			203,053
Average tangible s/h's equity (non-GAAP)		$	396,378		$	384,613		$	369,448		$	361,125		$	326,166		$	315,863		$	310,847		$	383,575		$	317,681

Average total assets (GAAP)		$	5,758,081		$	5,836,607		$	5,927,920		$	5,741,794		$	4,729,079		$	4,231,947		$	4,206,411		$	5,840,232		$	4,391,370
	Intangibles	300,725			302,181			303,599			304,388			227,606			190,362			190,787			302,158			203,053
Average tangible assets (non-GAAP)		$	5,457,356		$	5,534,426		$	5,624,321		$	5,437,406		$	4,501,473		$	4,041,585		$	4,015,624		$	5,538,074		$	4,188,317

Actual total assets (GAAP)		$	5,751,711		$	5,826,020		$	5,906,071		$	5,746,270		$	5,735,865		$	4,242,401		$	4,267,658		$	5,751,711		$	5,735,865
	Intangibles	298,609			301,478			302,903			304,330			305,065			190,208			190,522			298,609			305,065
Actual tangible assets (non-GAAP)		$	5,453,102		$	5,524,542		$	5,603,168		$	5,441,940		$	5,430,800		$	4,052,193		$	4,077,136		$	5,453,102		$	5,430,800

(1) Return on Average Equity
Return on avg s/h's equity (GAAP)		8.84		%	8.67		%	8.19		%	6.71		%	4.75		%	6.35		%	6.12		%	8.58		%	5.71		%
	Effect of adjustment for intangible assets	7.66		%	7.88		%	7.86		%	6.83		%	3.98		%	4.12		%	4.07		%	7.80		%	4.07		%
Return on avg tangible s/h's equity (non-GAAP)		16.50		%	16.55		%	16.05		%	13.55		%	8.74		%	10.47		%	10.19		%	16.37		%	9.78		%

(2) Return on Average Assets
Return on (average) assets (GAAP)		1.07		%	1.02		%	0.93		%	0.78		%	0.56		%	0.76		%	0.73		%	1.01		%	0.68		%
	Effect of adjustment for intangible assets	0.13		%	0.13		%	0.12		%	0.12		%	0.08		%	0.06		%	0.06		%	0.13		%	0.07		%
Return on average tangible assets (non-GAAP)		1.20		%	1.15		%	1.05		%	0.90		%	0.63		%	0.82		%	0.79		%	1.13		%	0.74		%

(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP)		12.18		%	11.81		%	11.46		%	11.58		%	11.46		%	11.80		%	11.77		%	12.18		%	11.46		%
	Effect of adjustment for intangible assets	4.81		%	4.81		%	4.79		%	4.94		%	4.97		%	4.14		%	4.12		%	4.81		%	4.97		%
Tangible capital ratio (non-GAAP)		7.37		%	7.00		%	6.68		%	6.64		%	6.49		%	7.66		%	7.65		%	7.37		%	6.49		%


											CALCULATION OF EFFICIENCY RATIO

Interest income (FTE)		$	58,098		$	60,002		$	57,811		$	58,644		$	46,083		$	41,331		$	40,371		$	175,911		$	127,785
	Interest expense	5,886			6,108			6,206			6,408			5,890			5,541			5,564			18,200			16,995
Net Interest income (FTE)		$	52,212		$	53,894		$	51,605		$	52,236		$	40,193		$	35,790		$	34,807		$	157,711		$	110,790

Total noninterest income		$	22,562		$	19,471		$	18,616		$	18,341		$	18,935		$	17,317		$	17,378		$	60,649		$	53,630
	Securities gains (losses)	375			—			—			—			—			—			54			375			54
	Gain on acquisition	—			—			—			—			—			—			—			—			—
Total noninterest income		$	22,187		$	19,471		$	18,616		$	18,341		$	18,935		$	17,317		$	17,324		$	60,274		$	53,576
Total Income (FTE)		$	74,399		$	73,365		$	70,221		$	70,577		$	59,128		$	53,107		$	52,131		$	217,985		$	164,366

Total noninterest expense		$	48,175		$	49,396		$	47,645		$	51,129		$	46,613		$	37,734		$	37,600		$	145,216		$	121,947
	Amortization of intangibles	1,381			1,427			1,471			1,508			724			314			323			4,279			1,361
	Merger-related expenses	—			—			195			1,879			3,763			385			—			195			4,148
	Debt extinguishment penalty	—			—			—			—			—			—			—			—			—
Total noninterest expense		$	46,794		$	47,969		$	45,979		$	47,742		$	42,126		$	37,035		$	37,277		$	140,742		$	116,438

(4) Efficiency Ratio		62.90		%	65.38		%	65.48		%	67.65		%	71.25		%	69.74		%	71.51		%	64.56		%	70.84		%

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