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

2016 FIRST QUARTER EARNINGS; INCREASES QUARTERLY CASH DIVIDEND

TUPELO, MISSISSIPPI (April 26, 2016) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced financial results for the first quarter of 2016. Net income for the first quarter of 2016 was $21.2 million, or basic earnings per share (“EPS”) of $0.53 and diluted EPS of $0.52, as compared to $15.2 million, or basic and diluted EPS of $0.48, for the first quarter of 2015. Excluding the impact of after-tax merger and conversion expenses incurred during each quarter, basic and diluted EPS were $0.54 for the first quarter of 2016, as compared to basic and diluted EPS of $0.49 for the first quarter of 2015.

On April 26, 2016, the Board of Directors of the Company approved the payment of a quarterly cash dividend of eighteen cents ($0.18) per share to be paid June 30, 2016, to shareholders of record as of June 15, 2016. The per share dividend represents an increase of $.01, or 5.88%, from the dividend paid in the previous quarter.

For the first quarter of 2016, the Company’s return on average assets and return on average equity were 1.07% and 8.12%, respectively, as compared to 1.06% and 8.59%, respectively, for the first quarter of 2015. The Company’s 2016 first quarter return on average tangible assets and return on average tangible equity were 1.20% and 15.58%, respectively, as compared to 1.18% and 15.45%, respectively, for the first quarter of 2015.

On April 1, 2016, the Company completed its previously-announced acquisition of KeyWorth Bank (“KeyWorth”), a Georgia state bank headquartered in Atlanta, Georgia, in an all-stock merger. As of the acquisition date, KeyWorth operated six offices in the Atlanta metropolitan area and had approximately $399 million in assets, which included approximately $284 million in total loans and approximately $347 million in total deposits. The acquired operations of KeyWorth are not included in the financial information in this release.

“Our first quarter 2016 financial results reflect a strong start to what we expect to be a great year. We are fortunate to operate in economically vibrant markets, and our team is focused on capitalizing on opportunities throughout our footprint. These results include our successful completion of the Heritage acquisition, an annualized linked quarter non-acquired loan growth of 25.62% and a continuation of improving returns on profitability metrics as our return on average tangible assets was 1.20%, and our return on average tangible equity was 15.58%,” said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. “Additionally, we are pleased to announce an increase to our quarterly dividend which boosts our annual cash dividend from $0.68 to $0.72.”

The following table presents the Company’s profitability metrics for the first quarter of 2016, including and excluding the impact of after-tax merger and conversion expenses:



	As Reported	Excluding Merger Expenses
Return on average assets	1.07%	1.10%
Return on average tangible assets	1.20%	1.23%
Return on average equity	8.12%	8.34%
Return on average tangible equity	15.58%	16.00%

Total assets as of March 31, 2016, were approximately $8.15 billion, as compared to $5.88 billion as of March 31, 2015, and $7.93 billion on a linked quarter basis.

Total deposits were $6.43 billion at March 31, 2016, as compared to $4.94 billion at March 31, 2015, and $6.22 billion at December 31, 2015. The Company’s cost of funds was 37 basis points for the first quarter of 2016, as compared to 43 basis points for the same quarter in 2015, and 32 basis points for the quarter ended December 31, 2015. The Company’s noninterest-bearing deposits averaged approximately $1.32 billion, or 20.99% of average deposits, for the first quarter of 2016, as compared to $932 million, or 19.12% of average deposits, for the first quarter of 2015, and $1.32 billion, or 21.36% of average deposits, for the quarter ended December 31, 2015.

Total loans, including loans acquired in the Heritage Financial Group, Inc. (“Heritage”), and First M&F Corporation (“First M&F”) acquisitions or in FDIC-assisted transactions (collectively referred to as “acquired loans”), were approximately $5.57 billion at March 31, 2016, as compared to $3.95 billion at March 31, 2015, and $5.41 billion on a linked quarter basis. Excluding acquired loans, loans grew 24.44% to $4.07 billion at March 31, 2016, as compared to $3.27 billion at March 31, 2015. On a linked quarter basis, non-acquired loans were $3.83 billion at December 31, 2015.

At March 31, 2016, the Company’s Tier 1 leverage capital ratio was 9.19%, its Tier 1 risk-based capital ratio was 11.38%, and its total risk-based capital ratio was 12.17%. The Company’s common equity Tier 1 capital ratio was 9.88% at March 31, 2016. In all capital ratio categories, the Company’s

regulatory capital ratios continued to be in excess of the regulatory minimums required to be classified as “well-capitalized.” The Company’s tangible common equity ratio was 7.52% as of March 31, 2016.

Net interest income was $70.1 million for the first quarter of 2016, as compared to approximately $48.8 million for the first quarter of 2015. Net interest margin was 4.21% for the first quarter of 2016, compared to 4.02% for the first quarter of 2015 and 4.33% on a linked quarter basis. Additional interest income recognized in connection with the acceleration of pay downs and payoffs from acquired loans was $1.6 million in the first quarter of 2016, and increased net interest margin 11 basis points compared to $590 thousand and a 5 basis point increase in net interest margin in the same period in 2015. The Company increased net interest margin by 21 basis points after recognizing $3.61 million in accelerated accretion in the fourth quarter of 2015.

The Company’s noninterest income is derived from diverse lines of business which primarily consist of originations and sales of mortgage loans, wealth management and insurance revenue sources along with income from deposit and loan products. Total noninterest income was $33.3 million for the first quarter of 2016, as compared to approximately $21.9 million for the first quarter of 2015, and $31.4 million for the fourth quarter of 2015. The Company’s overall growth in noninterest income for the first quarter, as compared to the same period in the prior year, is primarily attributable to the Heritage acquisition and increases in the sales of mortgage loans that we originate.

Noninterest expense was $69.8 million for the first quarter of 2016, as compared to approximately $47.3 million for the first quarter of 2015, and $70.7 million on a linked quarter basis. The Company recorded merger and conversion expenses of approximately $948 thousand and $478 thousand during the first quarter of 2016 and 2015, respectively, and $1.9 million in the fourth quarter of 2015.

Annualized net charge-offs as a percentage of average loans, including acquired loans, declined to 10 basis points for the first quarter of 2016, as compared to 11 basis points for the first quarter of 2015. The Company recorded a provision for loan losses of $1.8 million for the first quarter of 2016, as compared to $1.1 million for the first quarter of 2015.

Nonperforming assets consists of loans 90 days or more past due, nonaccrual loans and other real estate owned (“OREO”). The following table provides details of the Company’s nonperforming assets as of the dates presented (in thousands):



	March 31, 2016	December 31, 2015	March 31, 2015
Not Acquired	$ 26,995	$ 27,958	$ 35,647
Acquired and Subject to Loss Sharing Agreements	8,424	9,746	22,365
Acquired and Not Subject to Loss Sharing Agreements	42,224	43,125	21,889
Total	$ 77,643	$ 80,829	$ 79,901

Since the nonperforming assets acquired in previous acquisitions or in connection with FDIC- assisted transactions (collectively referred to as “acquired nonperforming assets”) were recorded at fair value at the time of acquisition or are subject to loss-share agreements with the FDIC, which significantly mitigates the Company’s 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 (loans 90 days or more past due and nonaccrual loans) were $14.2 million as of March 31, 2016, as compared to $18.9 million as of March 31, 2015, and $15.0 million at December 31, 2015. Nonperforming loans as a percentage of total loans were 0.35% as

of March 31, 2016, as compared to 0.58% as of March 31, 2015, and 0.39% as of December 31, 2015.

The allowance for loan losses totaled $42.9 million at March 31, 2016, as compared to $42.3 million as of March 31, 2015, and $42.4 million as of December 31, 2015. The allowance for loan losses as a percentage of loans was 1.05% as of March 31, 2016, as compared to 1.29% as of March 31, 2015, and 1.11% as of December 31, 2015.

The Company’s coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 302.14% as of March 31, 2016, as compared to 223.68% as of March 31, 2015, and 283.46% as of December 31, 2015. Loans 30 to 89 days past due as a percentage of total loans were 0.17% at March 31, 2016, as compared to 0.37% at March 31, 2015, and 0.19% at December 31, 2015.

OREO was $12.8 million as of March 31, 2016, as compared to $16.7 million as of March 31, 2015, and $13.0 million at December 31, 2015. The Company continues to proactively market the properties held in OREO as it sold approximately $628 thousand of OREO during the first quarter of 2016, and had $1.1 million in sales during the fourth quarter of 2015.

CONFERENCE CALL INFORMATION:

The Company will hold executive management's quarterly webcast and conference call with analysts on Wednesday, April 27, 2016, at 10:00 AM Eastern Time (9:00 AM Central Time).

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst160427. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation First 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 10084127 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until May 11, 2016.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 112-year-old financial services institution. Renasant has assets of approximately $8.15 billion and operates more than 175 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 “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)
																	Q1 2016 -		For The Three Months Ending
		2016			2015												Q4 2015		March 31,
		First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2016			2015			Variance
Statement of earnings
Interest income - taxable equivalent basis		$	78,009		$	79,679		$	76,242		$	58,516		$	55,910		(2.10	)	$	78,009		$	55,910		39.53
Interest income		$	76,259		$	77,787		$	74,300		$	56,769		$	54,166		(1.97	)	$	76,259		$	54,166		40.79
Interest expense		6,205			5,436			5,688			5,155			5,385			14.14		6,205			5,385			15.23
	Net interest income	70,054			72,351			68,612			51,614			48,781			(3.18	)	70,054			48,781			43.61
Provision for loan losses		1,800			1,750			750			1,175			1,075			2.86		1,800			1,075			67.44
	Net interest income after provision	68,254			70,601			67,862			50,439			47,706			(3.33	)	68,254			47,706			43.07
Service charges on deposit accounts		7,991			8,260			8,151			6,522			6,335			(3.26	)	7,991			6,335			26.13
Fees and commissions on loans and deposits		4,331			4,437			4,388			3,571			3,695			(2.40	)	4,331			3,695			17.19
Insurance commissions and fees		1,962			1,956			2,380			2,119			1,967			0.32		1,962			1,967			(0.24	)
Wealth management revenue		2,891			2,609			2,833			2,210			2,156			10.84		2,891			2,156			34.12
Securities gains (losses)		(71		)	—			—			96			—			—		(71		)	—			—
Mortgage banking income		11,915			11,702			11,893			6,791			5,429			1.83		11,915			5,429			119.48
Gain on sale of SBA loans		996			509			376			90			293			95.78		996			293			239.26
Other		3,287			1,969			2,058			1,480			1,995			66.88		3,287			1,995			64.77
	Total noninterest income	33,302			31,442			32,079			22,879			21,870			5.92		33,302			21,870			52.28
Salaries and employee benefits		42,393			43,409			43,047			30,395			28,260			(2.34	)	42,393			28,260			50.01
Data processing		4,158			4,003			3,819			3,199			3,230			3.88		4,158			3,230			30.71
Occupancy and equipment		7,998			7,887			7,493			5,360			5,550			1.41		7,998			5,550			44.10
Other real estate		957			697			862			954			532			37.21		957			532			79.95
Amortization of intangibles		1,697			1,751			1,804			1,238			1,275			(3.07	)	1,697			1,275			33.07
Merger and conversion related expenses		948			1,923			7,746			1,468			478			(50.69	)	948			478			98.55
Debt extinguishment penalty		—			—			—			—			—			—		—			—			—
Other		11,663			11,064			11,208			8,468			7,994			5.41		11,663			7,994			45.00
	Total noninterest expense	69,814			70,734			75,979			51,082			47,319			(1.30	)	69,814			47,319			47.54
Income before income taxes		31,742			31,309			23,962			22,236			22,257			1.38		31,742			22,257			42.62
Income taxes		10,526			10,149			7,741			6,842			7,017			3.71		10,526			7,017			50.00
	Net income	$	21,216		$	21,160		$	16,221		$	15,394		$	15,240		0.27		$	21,216		$	15,240		39.22
Basic earnings per share		$	0.53		$	0.53		$	0.40		$	0.49		$	0.48		—		$	0.53		$	0.48		10.42
Diluted earnings per share		0.52			0.52			0.40			0.48			0.48			—		0.52			0.48			8.33
Average basic shares outstanding		40,324,475			40,276,441			40,265,941			31,626,059			31,576,275			0.12		40,324,475			31,576,275			27.70
Average diluted shares outstanding		40,559,145			40,539,151			40,518,413			31,865,172			31,815,710			0.05		40,559,145			31,815,710			27.48
Common shares outstanding		40,373,753			40,293,291			40,268,455			31,644,706			31,604,937			0.20		40,373,753			31,604,937			27.75
Cash dividend per common share		$	0.17		$	0.17		$	0.17		$	0.17		$	0.17		—		$	0.17		$	0.17		—
Performance ratios
Return on average shareholders' equity		8.12		%	8.12		%	6.33		%	8.42		%	8.59		%			8.12		%	8.59		%
Return on average tangible shareholders' equity (1)		15.58		%	15.84		%	12.20		%	14.89		%	15.45		%			15.58		%	15.45		%
Return on average assets		1.07		%	1.06		%	0.81		%	1.06		%	1.06		%			1.07		%	1.06		%
Return on average tangible assets (2)		1.20		%	1.19		%	0.93		%	1.17		%	1.18		%			1.20		%	1.18		%
Net interest margin (FTE)		4.21		%	4.33		%	4.09		%	4.17		%	4.02		%			4.21		%	4.02		%
Yield on earning assets (FTE)		4.57		%	4.65		%	4.42		%	4.57		%	4.45		%			4.57		%	4.45		%
Cost of funding		0.37		%	0.32		%	0.33		%	0.41		%	0.43		%			0.37		%	0.43		%
Average earning assets to average assets		86.21		%	86.07		%	86.64		%	87.79		%	87.49		%			86.21		%	87.49		%
Average loans to average deposits		87.39		%	86.22		%	83.63		%	81.93		%	81.44		%			87.39		%	81.44		%
Noninterest income (less securities gains/
	losses) to average assets	1.69		%	1.58		%	1.61		%	1.56		%	1.52		%			1.69		%	1.52		%
Noninterest expense (less debt prepayment penalties/
	merger-related expenses) to average assets	3.48		%	3.46		%	3.43		%	3.40		%	3.26		%			3.48		%	3.26		%
Net overhead ratio		1.79		%	1.88		%	1.82		%	1.84		%	1.74		%			1.79		%	1.74		%
Efficiency ratio (FTE) (4)		63.86		%	63.45		%	64.73		%	63.53		%	62.94		%			63.86		%	62.94		%



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																	Q1 2016		For The Three Months Ending
		2016			2015												Q4 2015		March 31,
		First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2016			2015			Variance
Average Balances
Total assets		$	7,961,700		$	7,898,803		$	7,897,769		$	5,847,539		$	5,821,756		0.80		$	7,961,700		$	5,821,756		36.76
Earning assets		6,863,905			6,798,474			6,842,452			5,133,567			5,093,224			0.96		6,863,905			5,093,224			34.77
Securities		1,103,504			1,117,322			1,143,577			999,962			989,743			(1.24	)	1,103,504			989,743			11.49
Mortgage loans held for sale		217,200			268,096			398,480			87,435			50,918			(18.98	)	217,200			50,918			326.57
Loans, net of unearned		5,482,167			5,341,943			5,223,273			3,978,514			3,969,244			2.62		5,482,167			3,969,244			38.12
Intangibles		473,852			473,996			449,042			295,441			296,682			(0.03	)	473,852			296,682			59.72
Noninterest-bearing deposits		$	1,316,495		$	1,323,467		$	1,272,714		$	969,770		$	932,011		(0.53	)	$	1,316,495		$	932,011		41.25
Interest-bearing deposits		4,956,983			4,872,432			4,972,717			3,886,199			3,941,863			1.74		4,956,983			3,941,863			25.75
Total deposits		6,273,478			6,195,899			6,245,431			4,855,969			4,873,874			1.25		6,273,478			4,873,874			28.72
Borrowed funds		539,078			568,548			556,269			204,884			168,758			(5.18	)	539,078			168,758			219.44
Shareholders' equity		1,050,668			1,033,692			1,016,143			733,158			719,687			1.64		1,050,668			719,687			45.99


																	Q1 2016 -		As of
		2016			2015												Q4 2015		March 31,
		First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2016			2015			Variance
Balances at period end
Total assets		$	8,146,229		$	7,926,496		$	7,910,963		$	5,899,190		$	5,881,849		2.77		$	8,146,229		$	5,881,849		38.50
Earning assets		7,045,180			6,778,485			6,810,285			5,186,419			5,168,497			3.93		7,045,180			5,168,497			36.31
Securities		1,101,820			1,105,205			1,139,553			965,290			1,016,393			(0.31	)	1,101,820			1,016,393			8.40
Mortgage loans held for sale		298,365			225,254			317,681			108,023			102,780			32.46		298,365			102,780			190.30
Loans not acquired		4,074,413			3,830,434			3,607,005			3,407,925			3,274,314			6.37		4,074,413			3,274,314			24.44
Loans acquired and covered by FDIC loss-share agreements		44,989			93,142			100,839			121,626			125,773			(51.70	)	44,989			125,773			(64.23	)
Loans acquired and not covered by FDIC loss-share agreements		1,453,328			1,489,886			1,570,116			507,653			553,574			(2.45	)	1,453,328			553,574			162.54
	Total loans	5,572,730			5,413,462			5,277,960			4,037,204			3,953,661			2.94		5,572,730			3,953,661			40.95
Intangibles		476,539			474,683			474,830			294,808			296,053			0.39		476,539			296,053			60.96
Noninterest-bearing deposits		$	1,384,503		$	1,278,337		$	1,303,884		$	972,671		$	959,351		8.31		$	1,384,503		$	959,351		44.32
Interest-bearing deposits		5,046,874			4,940,265			4,930,677			3,917,772			3,983,419			2.16		5,046,874			3,983,419			26.70
	Total deposits	6,431,377			6,218,602			6,234,561			4,890,443			4,942,770			3.42		6,431,377			4,942,770			30.12
Borrowed funds		561,671			570,496			551,740			219,089			162,313			(1.55	)	561,671			162,313			246.04
Shareholders' equity		1,053,178			1,036,818			1,024,930			730,976			723,196			1.58		1,053,178			723,196			45.63
Market value per common share		$	32.91		$	34.41		$	32.85		$	32.60		$	30.05		(4.36	)	$	32.91		$	30.05		9.52
Book value per common share		26.09			25.73			25.45			23.10			22.88			1.38		26.09			22.88			14.02
Tangible book value per common share		14.28			13.95			13.66			13.78			13.52			2.38		14.28			13.52			5.62
Shareholders' equity to assets (actual)		12.93		%	13.08		%	12.96		%	12.39		%	12.30		%			12.93		%	12.30		%
Tangible capital ratio (3)		7.52		%	7.54		%	7.40		%	7.78		%	7.65		%			7.52		%	7.65		%
Leverage ratio		9.19		%	9.16		%	8.95		%	9.89		%	9.74		%			9.19		%	9.74		%
Common equity tier 1 capital ratio		9.88		%	9.99		%	9.92		%	10.45		%	10.35		%			9.88		%	10.35		%
Tier 1 risk-based capital ratio		11.38		%	11.51		%	11.46		%	12.52		%	12.47		%			11.38		%	12.47		%
Total risk-based capital ratio		12.17		%	12.32		%	12.27		%	13.55		%	13.51		%			12.17		%	13.51		%



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																Q1 2016 -		As of
	2016			2015												Q4 2015		March 31,
	First			Fourth			Third			Second			First			Percent								Percent
	Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2016			2015			Variance
Loans not acquired
Commercial, financial, agricultural	$	520,463		$	485,407		$	450,688		$	437,181		$	418,752		7.22		$	520,463		$	418,752		24.29
Lease Financing	41,937			34,815			24,698			17,633			11,560			20.46		41,937			11,560			262.78
Real estate- construction	325,188			291,701			268,805			212,071			200,966			11.48		325,188			200,966			61.81
Real estate - 1-4 family mortgages	1,263,879			1,204,228			1,128,556			1,073,816			1,025,264			4.95		1,263,879			1,025,264			23.27
Real estate - commercial mortgages	1,836,053			1,729,049			1,653,534			1,589,969			1,542,706			6.19		1,836,053			1,542,706			19.02
Installment loans to individuals	86,893			85,234			80,724			77,255			75,066			1.95		86,893			75,066			15.76
Loans, net of unearned	$	4,074,413		$	3,830,434		$	3,607,005		$	3,407,925		$	3,274,314		6.37		$	4,074,413		$	3,274,314		24.44
Loans acquired and covered by FDIC loss-share agreements
Commercial, financial, agricultural	$	624		$	2,406		$	2,467		$	3,726		$	3,917		(74.06	)	$	624		$	3,917		(84.07	)
Lease Financing	—			—			—			—			—			—		—			—			—
Real estate- construction	86			130			137			—			—			(33.85	)	86			—			—
Real estate - 1-4 family mortgages	36,350			45,988			48,779			40,333			42,758			(20.96	)	36,350			42,758			(14.99	)
Real estate - commercial mortgages	7,870			44,550			49,382			77,536			79,064			(82.33	)	7,870			79,064			(90.05	)
Installment loans to individuals	59			68			74			31			34			(13.24	)	59			34			73.53
Loans, net of unearned	$	44,989		$	93,142		$	100,839		$	121,626		$	125,773		(51.70	)	$	44,989		$	125,773		(64.23	)
Loans acquired and not covered by FDIC loss-share agreements
Commercial, financial, agricultural	$	133,847		$	149,024		$	167,966		$	39,652		$	52,119		(10.18	)	$	133,847		$	52,119		156.81
Lease Financing	—			—			—			—			—			—		—			—			—
Real estate- construction	52,300			65,834			70,428			505			483			(20.56	)	52,300			483			10,728.16
Real estate - 1-4 family mortgages	477,266			485,107			485,170			161,765			171,433			(1.62	)	477,266			171,433			178.40
Real estate - commercial mortgages	763,587			760,130			813,973			295,484			317,224			0.45		763,587			317,224			140.71
Installment loans to individuals	26,328			29,791			32,579			10,247			12,315			(11.62	)	26,328			12,315			113.79
Loans, net of unearned	$	1,453,328		$	1,489,886		$	1,570,116		$	507,653		$	553,574		(2.45	)	$	1,453,328		$	553,574		162.54
Asset quality data
Assets not acquired:
Nonaccrual loans	$	11,690		$	13,645		$	14,522		$	15,514		$	17,719		(14.33	)	$	11,690		$	17,719		(34.03	)
Loans 90 past due or more	2,495			1,326			647			5,647			1,193			88.16		2,495			1,193			109.14
Nonperforming loans	14,185			14,971			15,169			21,161			18,912			(5.25	)	14,185			18,912			(24.99	)
Other real estate owned	12,810			12,987			13,936			14,967			16,735			(1.36	)	12,810			16,735			(23.45	)
Nonperforming assets not acquired	$	26,995		$	27,958		$	29,105		$	36,128		$	35,647		(3.44	)	$	26,995		$	35,647		(24.27	)
Assets acquired and subject to loss share:
Nonaccrual loans	$	2,708		$	3,319		$	3,270		$	19,487		$	18,040		(18.41	)	$	2,708		$	18,040		(84.99	)
Loans 90 past due or more	4,343			3,609			4,143			—			—			20.34		4,343			—			—
Nonperforming loans	7,051			6,928			7,413			19,487			18,040			1.78		7,051			18,040			(60.91	)
Other real estate owned	1,373			2,818			3,183			3,853			4,325			(51.28	)	1,373			4,325			(68.25	)
Nonperforming assets acquired and subject to loss share	$	8,424		$	9,746		$	10,596		$	23,340		$	22,365		(13.56	)	$	8,424		$	22,365		(62.33	)
Assets acquired and not subject to loss share:
Nonaccrual loans	$	12,368		$	12,070		$	15,796		$	1,085		$	1,627		2.47		$	12,368		$	1,627		660.17
Loans 90 past due or more	10,805			11,458			8,824			2,523			9,636			(5.70	)	10,805			9,636			12.13
Nonperforming loans	23,173			23,528			24,620			3,608			11,263			(1.51	)	23,173			11,263			105.74
Other real estate owned	19,051			19,597			19,215			8,244			10,626			(2.79	)	19,051			10,626			79.29
Nonperforming assets acquired	$	42,224		$	43,125		$	43,835		$	11,852		$	21,889		(2.09	)	$	42,224		$	21,889		92.90
Net loan charge-offs (recoveries)	$	1,378		$	1,364		$	588		$	1,588		$	1,062		1.03		$	1,378		$	1,062		29.76
Allowance for loan losses	$	42,859		$	42,437		$	42,051		$	41,888		$	42,302		0.99		$	42,859		$	42,302		1.32
Annualized net loan charge-offs / average loans	0.10		%	0.10		%	0.04		%	0.16		%	0.11		%			0.10		%	0.11		%
Nonperforming loans / total loans*	0.80		%	0.84		%	0.89		%	1.10		%	1.22		%			0.80		%	1.22		%
Nonperforming assets / total assets*	0.95		%	1.02		%	1.06		%	1.21		%	1.36		%			0.95		%	1.36		%
Allowance for loan losses / total loans*	0.77		%	0.78		%	0.80		%	1.04		%	1.07		%			0.77		%	1.07		%
Allowance for loan losses / nonperforming loans*	96.51		%	93.42		%	89.09		%	94.65		%	87.74		%			96.51		%	87.74		%
Nonperforming loans / total loans**	0.35		%	0.39		%	0.42		%	0.62		%	0.58		%			0.35		%	0.58		%
Nonperforming assets / total assets**	0.33		%	0.35		%	0.37		%	0.61		%	0.61		%			0.33		%	0.61		%
Allowance for loan losses / total loans**	1.05		%	1.11		%	1.17		%	1.23		%	1.29		%			1.05		%	1.29		%
Allowance for loan losses / nonperforming loans**	302.14		%	283.46		%	277.22		%	197.95		%	223.68		%			302.14		%	223.68		%
*Based on all assets (includes acquired assets)
**Excludes all assets acquired



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
					RECONCILIATION OF GAAP TO NON-GAAP
																	For The Three Months Ending
		2016			2015												March 31,
		First			Fourth			Third			Second			First
		Quarter			Quarter			Quarter			Quarter			Quarter			2016			2015
Net income (GAAP)		$	21,216		$	21,160		$	16,221		$	15,394		$	15,240		$	21,216		$	15,240
	Amortization of intangibles, net of tax	1,134			1,183			1,221			857			873			1,134			873
Tangible net income (non-GAAP)		$	22,350		$	22,343		$	17,442		$	16,251		$	16,113		$	22,350		$	16,113

Average shareholders' equity (GAAP)		$	1,050,668		$	1,033,692		$	1,016,143		$	733,158		$	719,687		$	1,050,668		$	719,687
	Intangibles	473,852			473,996			449,042			295,441			296,682			473,852			296,682
Average tangible s/h's equity (non-GAAP)		$	576,816		$	559,696		$	567,101		$	437,717		$	423,005		$	576,816		$	423,005

Average total assets (GAAP)		$	7,961,700		$	7,898,803		$	7,897,769		$	5,847,539		$	5,821,756		$	7,961,700		$	5,821,756
	Intangibles	473,852			473,996			449,042			295,441			296,682			473,852			296,682
Average tangible assets (non-GAAP)		$	7,487,848		$	7,424,807		$	7,448,727		$	5,552,098		$	5,525,074		$	7,487,848		$	5,525,074

Actual shareholders' equity (GAAP)		$	1,053,178		$	1,036,818		$	1,024,930		$	730,976		$	723,196		$	1,053,178		$	723,196
	Intangibles	476,539			474,683			474,830			294,808			296,053			476,539			296,053
Actual tangible s/h's equity (non-GAAP)		$	576,639		$	562,135		$	550,100		$	436,168		$	427,143		$	576,639		$	427,143

Actual total assets (GAAP)		$	8,146,229		$	7,926,496		$	7,910,963		$	5,899,190		$	5,881,849		$	8,146,229		$	5,881,849
	Intangibles	476,539			474,683			474,830			294,808			296,053			476,539			296,053
Actual tangible assets (non-GAAP)		$	7,669,690		$	7,451,813		$	7,436,133		$	5,604,382		$	5,585,796		$	7,669,690		$	5,585,796

(1) Return on Average Equity
Return on avg s/h's equity (GAAP)		8.12		%	8.12		%	6.33		%	8.42		%	8.59		%	8.12		%	8.59		%
	Effect of adjustment for intangible assets	7.46		%	7.72		%	5.87		%	6.47		%	6.86		%	7.46		%	6.86		%
Return on avg tangible s/h's equity (non-GAAP)		15.58		%	15.84		%	12.20		%	14.89		%	15.45		%	15.58		%	15.45		%

(2) Return on Average Assets
Return on (average) assets (GAAP)		1.07		%	1.06		%	0.81		%	1.06		%	1.06		%	1.07		%	1.06		%
	Effect of adjustment for intangible assets	0.13		%	0.13		%	0.11		%	0.12		%	0.12		%	0.13		%	0.12		%
Return on average tangible assets (non-GAAP)		1.20		%	1.19		%	0.93		%	1.17		%	1.18		%	1.20		%	1.18		%

(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP)		12.93		%	13.08		%	12.96		%	12.39		%	12.30		%	12.93		%	12.30		%
	Effect of adjustment for intangible assets	5.41		%	5.54		%	5.56		%	4.61		%	4.65		%	5.41		%	4.65		%
Tangible capital ratio (non-GAAP)		7.52		%	7.54		%	7.40		%	7.78		%	7.65		%	7.52		%	7.65		%

					CALCULATION OF EFFICIENCY RATIO

Interest income (FTE)		$	78,009		$	79,679		$	76,242		$	58,516		$	55,910		$	78,009		$	55,910
	Interest expense	6,205			5,436			5,688			5,155			5,385			6,205			5,385
Net Interest income (FTE)		$	71,804		$	74,243		$	70,554		$	53,361		$	50,525		$	71,804		$	50,525

Total noninterest income		$	33,302		$	31,442		$	32,079		$	22,880		$	21,870		$	33,302		$	21,870
	Securities gains (losses)	(71		)	—			—			96			—			(71		)	—
	Gain on acquisition	—			—			—			—			—			—			—
Total noninterest income		$	33,373		$	31,442		$	32,079		$	22,784		$	21,870		$	33,373		$	21,870
Total Income (FTE)		$	105,177		$	105,685		$	102,633		$	76,145		$	72,395		$	105,177		$	72,395

Total noninterest expense		$	69,814		$	70,734		$	75,979		$	51,082		$	47,319		$	69,814		$	47,319
	Amortization of intangibles	1,697			1,751			1,804			1,238			1,275			1,697			1,275
	Merger-related expenses	948			1,923			7,746			1,468			478			948			478
	Debt extinguishment penalty	—			—			—			—			—			—			—
Total noninterest expense		$	67,169		$	67,060		$	66,429		$	48,376		$	45,566		$	67,169		$	45,566

(4) Efficiency Ratio		63.86		%	63.45		%	64.73		%	63.53		%	62.94		%	63.86		%	62.94		%

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