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

RECORD EARNINGS FOR THE SECOND QUARTER OF 2017

TUPELO, MISSISSIPPI (July 18, 2017) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the second quarter of 2017. Net income for the second quarter of 2017 was approximately $25.3 million, up 10.41%, as compared to $22.9 million for the second quarter of 2016. Basic and diluted earnings per share (“EPS”) were $0.57 for the second quarter of 2017, as compared to basic and diluted EPS of $0.54 for the second quarter of 2016.

Net income for the six months ending June 30, 2017, was $49.3 million, an increase of 11.65%, as compared to $44.1 million for the same time period in 2016. Basic and diluted EPS were $1.11 through the first six months of 2017, as compared to basic and diluted EPS of $1.07 and $1.06, respectively, for the same time period in 2016.

The Company incurred expenses and charges in connection with certain transactions that are considered to be infrequent or non-recurring in nature. The following table presents the impact of these charges on reported EPS for the dates presented (in thousands):



	Three months ended June 30, 2017						Three months ended June 30, 2016
	Pre-tax		After-tax		Impact to Diluted EPS		Pre-tax		After-tax		Impact to Diluted EPS
Merger and conversion expenses	$	3,044	$	2,065	$	0.04	$	2,807	$	1,888	$	0.05
Debt prepayment penalty	—		—		—		329		221		0.01



	Six months ended June 30, 2017						Six months ended June 30, 2016
	Pre-tax		After-tax		Impact to Diluted EPS		Pre-tax		After-tax		Impact to Diluted EPS
Merger and conversion expenses	$	3,389	$	2,302	$	0.05	$	3,755	$	2,518	$	0.07
Debt prepayment penalty	205		139		—		329		221		0.01

On July 1, 2017, the Company completed its previously-announced acquisition of Metropolitan BancGroup, Inc. (“Metropolitan”) in an all-stock merger. As of the acquisition date, Metropolitan operated eight offices in Nashville and Memphis, Tennessee and the Jackson, Mississippi MSA and had approximately $1.2 billion in assets, which included approximately $990 million in total loans and approximately $940 million in total deposits. The acquired operations of Metropolitan are not included in the financial information in this release.

“We are excited to report record earnings for the second quarter of 2017. Our earnings were driven by expanding net interest margin, strong fee income, improving credit quality metrics and continued focus on overall expenses. As our earnings grew, our profitability metrics continued to improve as our returns on average tangible assets and average tangible equity, excluding nonrecurring items, were 1.38% and 14.84%, respectively,” said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. “With the closing of the Metropolitan merger on July 1, 2017, we welcome our new associates and clients as we look forward to a smooth integration during the third quarter of 2017.”

The following table presents the Company’s profitability metrics for the three and six months ending June 30, 2017, including and excluding the impact of after-tax merger and conversion expenses and, for the six-month period, debt prepayment penalties:



	Three Months Ended		Six Months Ended
	June 30, 2017		June 30, 2017
	As Reported	Excluding Merger and Conversion Expenses	As Reported	Excluding Merger and Conversion Expenses and Debt Prepayment Penalties
Return on average assets	1.16%	1.26%	1.14%	1.19%
Return on average tangible assets	1.28%	1.38%	1.26%	1.31%
Return on average equity	8.06%	8.71%	7.93%	8.32%
Return on average tangible equity	13.76%	14.84%	13.62%	14.27%

Highlights from the second quarter of 2017 include the following:

Profitability Metrics


•	Total assets were $8.9 billion at June 30, 2017, as compared to $8.7 billion at December 31, 2016.

•

Loans not purchased increased to $5.1 billion at June 30, 2017, from $4.7 billion at December 31, 2016. For the second quarter of 2017, the yield on total loans was 5.03% compared to 4.82% for the first quarter of 2017 and 5.09% for the second quarter of 2016. For the six months ended June 30, 2017, the yield on total loans was 4.93% compared to 5.02% for the same time period in 2016. The following tables reconcile the reported loan yield to the adjusted loan yield excluding the impact from interest income collected on problem loans and purchase accounting adjustments on purchased loans for the periods presented (in thousands):



	Three Months Ended
	June 30,			March 31,			June 30,
	2017			2017			2016
Taxable equivalent interest income on loans (as reported)	$	78,857		$	73,710		$	74,708
Interest income collected (foregone) on problem loans	2,734			567			969
Accretable yield recognized on purchased loans⁽¹⁾	5,410			5,604			8,276
Interest income on loans (adjusted)	$	70,713		$	67,539		$	65,463

Average loans	$	6,293,497		$	6,198,705		$	5,897,650

Loan yield, as reported	5.03		%	4.82		%	5.09		%
Loan yield, adjusted	4.51		%	4.42		%	4.46		%


⁽¹⁾	Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $2,674, $2,741 and $4,533 for the three months ended June 30, 2017, March 31, 2017, and June 30, 2016, respectively, which increased loan yield by 17 basis points, 18 basis points and 31 basis points for the same periods, respectively.



	Six Months Ended
	June 30,			June 30,
	2017			2016
Taxable equivalent interest income on loans (as reported)	$	152,567		$	141,938
Interest income collected (foregone) on problem loans	3,301			1,591
Accretable yield recognized on purchased loans⁽¹⁾	11,014			14,268
Interest income on loans (adjusted)	$	138,252		$	126,079

Average loans	$	6,246,363		$	5,691,056

Loan yield, as reported	4.93		%	5.02		%
Loan yield, adjusted	4.46		%	4.46		%


⁽¹⁾	Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $5,415 and $6,300 for the six months ended June 30, 2017, and June 30, 2016, respectively, which increased loan yield by 17 basis points and 22 basis points for the same periods, respectively.

•

Total deposits increased to $7.2 billion at June 30, 2017, from $7.1 billion at December 31, 2016. Noninterest-bearing deposits averaged $1.6 billion, or 22.17% of average deposits, for the first six months of 2017, compared to $1.4 billion, or 21.50% of average deposits, for the same period in 2016. For the second quarter of 2017, the cost of total deposits was 30 basis points, as compared to 29 basis points for the first quarter of 2017 and 26 basis points for the second quarter of 2016. The cost of total deposits was 30 basis points for the six months ending June 30, 2017, as compared to 26 basis points over the same time period in 2016.

•

Net interest income was $79.6 million for the second quarter of 2017, as compared to $74.0 million for the first quarter of 2017 and $77.2 million for the second quarter of 2016. Net interest margin was 4.27% for the second quarter of 2017, as compared to 4.01% for the first quarter of 2017 and 4.29% for the second quarter of 2016. The following table reconciles reported net interest margin to adjusted net interest margin excluding the impact from interest income collected on problem loans and purchase accounting adjustments on purchased loans for the periods presented (in thousands):



	Three Months Ended
	June 30,			March 31,			June 30,
	2017			2017			2016
Taxable equivalent net interest income (as reported)	$	81,453		$	75,907		$	78,932
Interest income collected (foregone) on problem loans	2,734			567			969
Accretable yield recognized on purchased loans ⁽¹⁾	5,410			5,604			8,276
Net interest income (adjusted)	$	73,309		$	69,736		$	69,687

Average earning assets	$	7,657,849		$	7,668,582		$	7,396,283

Net interest margin, as reported	4.27		%	4.01		%	4.29		%
Net interest margin, adjusted	3.84		%	3.69		%	3.79		%


⁽¹⁾	Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $2,674, $2,741 and $4,533 for the three months ended June 30, 2017, March 31, 2017, and June 30, 2016, respectively, which increased net interest margin by 14 basis points at both June 30, 2017 and March 31, 2017 and 25 basis points at June 30, 2016.

•

Net interest income was $153.6 million for the first six months of 2017, as compared to $147.2 million for the same period in 2016. Net interest margin was 4.14% for the first six months of 2017, as compared to 4.25% for the same period in 2016. The following table reconciles reported net interest margin to adjusted net interest margin excluding the impact from interest income collected on problem loans and purchase accounting adjustments on purchased loans for the periods presented (in thousands):



	Six Months Ended
	June 30,			June 30,
	2017			2016
Taxable equivalent net interest income (as reported)	$	157,360		$	150,745
Interest income collected (foregone) on problem loans	3,301			1,591
Accretable yield recognized on purchased loans ⁽¹⁾	11,014			14,268
Net interest income (adjusted)	$	143,045		$	134,886

Average earning assets	$	7,663,186		$	7,131,565

Net interest margin, as reported	4.14		%	4.25		%
Net interest margin, adjusted	3.76		%	3.80		%


⁽¹⁾	Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $5,415 and $6,300 for the six months ended June 30, 2017, and June 30, 2016, respectively, which increased net interest margin by 14 basis points and 18 basis points for the same periods, respectively.

•

Noninterest income for the second quarter of 2017 was $34.3 million, as compared to $35.6 million for the second quarter of 2016. Noninterest income for the first six months of 2017 was $66.3 million, as compared $68.9 million for the same time frame in 2016. The Company experienced increases in service charges on deposit accounts, fees and commissions on loans and deposits, and wealth management revenue in the first half of 2017 as compared to the same period in 2016. Mortgage banking income for the second quarter of 2017 was $12.4 million, compared to $13.4 million for the same period in 2016 as mortgage loans originations were down for the same period due to a reduction in the refinancing of mortgage loans. Lastly, during the second quarter of 2016 the Company recognized $1.3 million in gains on sale of securities, while there was no gain or loss recognized in the first half of 2017.

•

Noninterest expense was $74.8 million for the second quarter of 2017, as compared to $77.3 million for the second quarter of 2016. Noninterest expense for the first six months of 2017 was $144.2 million, as compared $147.1 million for the same time frame in 2016. Excluding nonrecurring charges for merger and conversion expenses and debt prepayment penalties, noninterest expense decreased when compared to the second quarter of 2016. This decrease is primarily attributable to a decrease in salary and employee benefits, data processing costs

which were realized through contract renegotiations, and expenses on other real estate owned.

Asset Quality Metrics

Total nonperforming assets were $46.5 million at June 30, 2017, a decrease of $12.3 million from December 31, 2016, and consisted of $26.8 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $19.7 million in OREO.

The Company’s nonperforming loans and OREO that were purchased in previous acquisitions (collectively referred to as “purchased nonperforming assets”) were $14.1 million and $15.4 million, respectively, at June 30, 2017, as compared to $22.2 million and $17.4 million, respectively, at December 31, 2016. The purchased nonperforming assets were recorded at fair value at the time of acquisition, which significantly mitigates the Company’s actual loss. As such, the remaining information in this release on nonperforming loans, OREO and the related asset quality ratios focuses on non-purchased nonperforming assets.

•

Non-purchased nonperforming loans decreased to $12.7 million, or 0.25% of total non-purchased loans, at June 30, 2017, from $13.4 million, or 0.28% of total non-purchased loans, at December 31, 2016. These loans were $12.0 million, or 0.28% of total non-purchased loans, at June 30, 2016. Early stage delinquencies, or loans 30-to-89 days past due, as a percentage of total loans were 0.18% at June 30, 2017, as compared to 0.23% at December 31, 2016, and at 0.22% June 30, 2016.


•	Non-purchased OREO was $4.3 million at June 30, 2017, as compared to $5.9 million at December 31, 2016, and $9.6 million at June 30, 2016. Non-purchased OREO sales totaled $1.8 million in the first half of 2017 and $3.3 million over the second half of 2016.


•	The allowance for loan losses was 0.69% of total loans at both June 30, 2017, and December 31, 2016, and 0.74% at June 30, 2016. The allowance for loan losses was 0.87% of non-purchased loans at June 30, 2017, as compared to 0.91% at December 31, 2016, and 1.03% at June 30, 2016.


◦	Net loan charge-offs were $524 thousand, or 0.03% of average total loans, for the second quarter of 2017, as compared to $191 thousand, or 0.01% of average total loans, for the second quarter of 2016.


◦	The provision for loan losses was $1.8 million for the second quarter of 2017, as compared to $1.4 million for the second quarter of 2016. The provision was $3.3 million for the first six months of 2017, as compared to $3.2 million for the same time period in 2016.

Capital Metrics


•	At June 30, 2017, Tier 1 leverage capital ratio was 10.68%, Common Equity Tier 1 ratio was 11.65%, Tier 1 risk-based capital ratio was 12.86%, and total risk-based capital ratio

was 15.00%. All regulatory ratios exceed the minimums required to be considered “well-capitalized.”


•	Tangible common equity ratio was 9.31% at June 30, 2017, as compared to 9.00% at December 31, 2016.

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 19, 2017.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst170719.html. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation Second Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.

The webcast will be archived on www.renasant.com beginning one hour after the call and will remain accessible for one year. Replays can also be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 10110411 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 2, 2017.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 113-year-old financial services institution. Renasant has assets of approximately $10.0 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 the Company’s portfolio of outstanding loans, and competition in the Company’s markets. Management undertakes 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. Certain non-GAAP financial measures that the Company uses exclude purchase accounting adjustments and interest income collected (foregone) on problem loans from loan interest income and net interest income when calculating the Company’s taxable equivalent loan yields and net interest margin, respectively. The Company’s management uses these non-GAAP financial measures to evaluate ongoing operating results and to assess ongoing profitability.

Certain other non-GAAP financial measures (namely, return on average tangible shareholders’ equity, return on average tangible assets, the ratio of tangible equity to tangible assets (commonly referred to as the “tangible capital ratio”) and the efficiency ratio) adjust GAAP financial measures to exclude intangible assets and certain charges that the Company considers to be non-recurring in nature. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful 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, and non-recurring charges can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution’s regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company’s results to information provided in other regulatory reports and the results of other companies. Reconciliations of these other 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.”

With respect to all of the non-GAAP financial information that the Company has included in this release, such information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company’s calculations may not be comparable to other similarly titled measures presented by other companies. Also there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.

###



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																					Q2 2017 -		For The Six Months Ending
		2017							2016												Q2 2016		June 30,
			Second			First			Fourth			Third			Second			First			Percent								Percent
			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2017			2016			Variance
Statement of earnings
Interest income - taxable equivalent basis			$	89,429		$	83,781		$	87,564		$	84,786		$	85,783		$	78,009		4.25		$	173,210		$	163,792		5.75
Interest income			$	87,579		$	81,889		$	85,840		$	83,032		$	84,008		$	76,259		4.25		$	169,468		$	160,267		5.74
Interest expense			7,976			7,874			7,791			7,301			6,851			6,205			16.42		15,850			13,056			21.40
	Net interest income		79,603			74,015			78,049			75,731			77,157			70,054			3.17		153,618			147,211			4.35
Provision for loan losses			1,750			1,500			1,650			2,650			1,430			1,800			22.38		3,250			3,230			0.62
	Net interest income after provision		77,853			72,515			76,399			73,081			75,727			68,254			2.81		150,368			143,981			4.44
Service charges on deposit accounts			7,958			7,931			8,163			8,200			7,521			7,991			5.81		15,889			15,512			2.43
Fees and commissions on loans and deposits			5,470			5,199			4,772			4,921			4,877			4,244			12.16		10,669			9,121			16.98
Insurance commissions and fees			2,181			1,860			1,951			2,420			2,175			1,962			0.28		4,041			4,137			(2.32	)
Wealth management revenue			3,037			2,884			2,849			3,040			2,872			2,891			5.75		5,921			5,763			2.74
Securities gains (losses)			—			—			—			—			1,257			(71		)	—		—			1,186			—
Mortgage banking income			12,424			10,504			8,262			15,846			13,420			11,915			(7.42	)	22,928			25,335			(9.50	)
Other			3,195			3,643			4,258			3,845			3,464			4,370			(7.77	)	6,838			7,834			(12.72	)
	Total noninterest income		34,265			32,021			30,255			38,272			35,586			33,302			(3.71	)	66,286			68,888			(3.78	)
Salaries and employee benefits			45,014			42,209			39,966			44,702			45,387			42,393			(0.82	)	87,223			87,780			(0.63	)
Data processing			3,835			4,234			4,503			4,560			4,502			4,158			(14.82	)	8,069			8,660			(6.82	)
Occupancy and equipment			8,814			9,319			8,809			8,830			8,531			8,224			3.32		18,133			16,755			8.22
Other real estate			781			532			1,585			1,540			1,614			957			(51.61	)	1,313			2,571			(48.93	)
Amortization of intangibles			1,493			1,563			1,624			1,684			1,742			1,697			(14.29	)	3,056			3,439			(11.14	)
Merger and conversion related expenses			3,044			345			—			268			2,807			948			8.44		3,389			3,755			(9.75	)
Debt extinguishment penalty			—			205			—			2,210			329			—			—		205			329			(37.69	)
Loss share termination			—			—			2,053			—			—			—			—		—			—			—
Other			11,860			10,902			13,018			12,674			12,347			11,437			(3.94	)	22,762			23,784			(4.30	)
	Total noninterest expense		74,841			69,309			71,558			76,468			77,259			69,814			(3.13	)	144,150			147,073			(1.99	)
Income before income taxes			37,277			35,227			35,096			34,885			34,054			31,742			9.46		72,504			65,796			10.20
Income taxes			11,993			11,255			11,461			11,706			11,154			10,526			7.52		23,248			21,680			7.23
	Net income		$	25,284		$	23,972		$	23,635		$	23,179		$	22,900		$	21,216		10.41		$	49,256		$	44,116		11.65
Basic earnings per share			$	0.57		$	0.54		$	0.56		$	0.55		$	0.54		$	0.53		5.56		$	1.11		$	1.07		3.74
Diluted earnings per share			0.57			0.54			0.55			0.55			0.54			0.52			5.56		1.11			1.06			4.72
Average basic shares outstanding			44,415,423			44,364,337			42,441,588			42,091,164			42,066,168			40,324,475			5.58		44,390,021			41,200,133			7.74
Average diluted shares outstanding			44,523,541			44,480,499			42,636,325			42,310,358			42,303,626			40,559,145			5.25		44,500,280			41,435,963			7.40
Common shares outstanding			44,430,335			44,394,707			44,332,273			42,102,224			42,085,690			40,373,753			5.57		44,430,335			42,085,690			5.57
Cash dividend per common share			$	0.18		$	0.18		$	0.18		$	0.18		$	0.18		$	0.17		—		$	0.36		$	0.35		2.86
Performance ratios
Return on avg shareholders' equity			8.06		%	7.80		%	8.14		%	8.12		%	8.21		%	8.12		%			7.93		%	8.17		%
Return on avg tangible s/h's equity (1)			13.76		%	13.48		%	14.90		%	15.15		%	15.57		%	15.58		%			13.62		%	15.57		%
Return on avg assets			1.16		%	1.11		%	1.09		%	1.08		%	1.08		%	1.07		%			1.14		%	1.07		%
Return on avg tangible assets (2)			1.28		%	1.23		%	1.22		%	1.20		%	1.20		%	1.20		%			1.26		%	1.20		%
Net interest margin (FTE)			4.27		%	4.01		%	4.24		%	4.15		%	4.29		%	4.21		%			4.14		%	4.25		%
Yield on earning assets (FTE)			4.68		%	4.43		%	4.66		%	4.54		%	4.66		%	4.57		%			4.56		%	4.62		%
Cost of funding			0.43		%	0.43		%	0.42		%	0.40		%	0.38		%	0.37		%			0.43		%	0.37		%
Average earning assets to average assets			87.81		%	87.55		%	87.10		%	86.82		%	86.59		%	86.21		%			87.68		%	86.41		%
Average loans to average deposits			88.03		%	86.81		%	88.89		%	89.40		%	87.73		%	87.39		%			87.42		%	87.56		%
Noninterest income (less securities gains/
	losses) to average assets		1.58		%	1.48		%	1.40		%	1.78		%	1.62		%	1.69		%			1.53		%	1.65		%
Noninterest expense (less debt prepayment penalties/
	merger-related expenses) to average assets		3.30		%	3.18		%	3.22		%	3.44		%	3.49		%	3.48		%			3.24		%	3.48		%
Net overhead ratio			1.72		%	1.70		%	1.82		%	1.66		%	1.87		%	1.79		%			1.71		%	1.83		%
Efficiency ratio (FTE) (4)			60.75		%	62.26		%	61.69		%	62.46		%	63.91		%	63.86		%			61.48		%	63.88		%



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																					Q2 2017		For The Six Months Ending
		2017							2016												Q2 2016		June 30,
			Second			First			Fourth			Third			Second			First			Percent								Percent
			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2017			2016			Variance
Average Balances
Total assets			$	8,720,660		$	8,759,448		$	8,591,795		$	8,562,199		$	8,541,818		$	7,961,700		2.09		$	8,739,947		$	8,253,361		5.90
Earning assets			7,657,849			7,668,582			7,483,222			7,433,461			7,396,283			6,863,905			3.54		7,663,186			7,131,564			7.45
Securities			1,069,244			1,043,697			1,034,270			1,045,905			1,111,831			1,103,504			(3.83	)	1,056,541			1,107,690			(4.62	)
Mortgage loans held for sale			168,650			112,105			184,583			241,314			306,011			217,200			(44.89	)	140,534			261,851			(46.33	)
Loans, net of unearned			6,293,497			6,198,705			6,147,077			6,048,017			5,897,650			5,482,167			6.71		6,246,363			5,691,056			9.76
Intangibles			492,349			493,816			495,404			497,064			499,503			473,852			(1.43	)	493,078			486,749			1.30
Noninterest-bearing deposits			$	1,608,467		$	1,558,809		$	1,564,150		$	1,510,309		$	1,477,380		$	1,316,495		8.87		$	1,583,775		$	1,397,382		13.34
Interest-bearing deposits			5,540,698			5,581,853			5,351,354			5,255,102			5,245,406			4,956,983			5.63		5,561,162			5,101,991			9.00
Total deposits			7,149,165			7,140,662			6,915,505			6,765,411			6,722,786			6,273,478			6.34		7,144,937			6,499,373			9.93
Borrowed funds			233,542			282,008			412,589			550,222			594,459			539,078			(60.71	)	257,641			566,921			(54.55	)
Shareholders' equity			1,258,935			1,246,903			1,155,749			1,135,073			1,121,298			1,050,668			12.27		1,252,952			1,086,178			15.35


																					Q2 2017 -		As of
		2017							2016												Q4 2016		June 30,
			Second			First			Fourth			Third			Second			First			Percent								Percent
			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2017			2016			Variance
Balances at period end
Total assets			$	8,872,272		$	8,764,711		$	8,699,851		$	8,542,471		$	8,529,566		$	8,146,229		1.98		$	8,872,272		$	8,529,566		4.02
Earning assets			7,763,775			7,690,045			7,556,760			7,409,068			7,396,888			7,045,179			2.74		7,763,775			7,396,888			4.96
Securities			1,076,625			1,044,862			1,030,530			1,039,957			1,063,592			1,101,820			4.47		1,076,625			1,063,592			1.23
Mortgage loans held for sale			232,398			158,619			177,866			189,965			276,782			298,365			30.66		232,398			276,782			(16.04	)
Loans not purchased			5,058,898			4,834,085			4,710,385			4,526,026			4,292,549			4,074,413			7.33		5,058,898			4,292,549			17.85
Loans purchased and covered by FDIC loss-share agreements			—			—			—			30,533			42,171			44,989			—		—			42,171			—
Loans purchased and not covered by FDIC loss-share agreements			1,312,109			1,401,720			1,489,137			1,548,674			1,630,709			1,453,328			(11.89	)	1,312,109			1,630,709			(19.54	)
	Total loans		6,371,007			6,235,805			6,199,522			6,105,233			5,965,429			5,572,730			2.71		6,371,007			5,965,429			6.80
Intangibles			491,552			493,045			494,608			496,233			497,917			476,539			(0.62	)	491,552			497,917			(1.28	)
Noninterest-bearing deposits			$	1,642,863		$	1,579,581		$	1,561,357		$	1,514,820		$	1,459,383		$	1,384,503		5.22		$	1,642,863		$	1,459,383		12.57
Interest-bearing deposits			5,559,162			5,651,269			5,497,780			5,302,978			5,243,104			5,046,874			1.12		5,559,162			5,243,104			6.03
	Total deposits		7,202,025			7,230,850			7,059,137			6,817,798			6,702,487			6,431,377			2.02		7,202,025			6,702,487			7.45
Borrowed funds			312,077			202,006			312,135			469,580			588,650			561,671			(0.02	)	312,077			588,650			(46.98	)
Shareholders' equity			1,271,786			1,251,065			1,232,883			1,142,247			1,124,256			1,053,178			3.16		1,271,786			1,124,256			13.12
Market value per common share			$	43.74		$	39.69		$	42.22		$	33.63		$	32.33		$	32.91		3.60		$	43.74		$	32.33		35.29
Book value per common share			28.62			28.18			27.81			27.13			26.71			26.09			2.91		28.62			26.71			7.14
Tangible book value per common share			17.56			17.07			16.65			15.34			14.88			14.28			5.45		17.56			14.88			17.99
Shareholders' equity to assets (actual)			14.33		%	14.27		%	14.17		%	13.37		%	13.18		%	12.93		%			14.33		%	13.18		%
Tangible capital ratio (3)			9.31		%	9.16		%	9.00		%	8.03		%	7.80		%	7.52		%			9.31		%	7.80		%
Leverage ratio			10.68		%	10.39		%	10.59		%	9.38		%	9.18		%	9.19		%			10.68		%	9.18		%
Common equity tier 1 capital ratio			11.65		%	11.69		%	11.48		%	10.16		%	10.12		%	9.88		%			11.65		%	10.12		%
Tier 1 risk-based capital ratio			12.86		%	12.93		%	12.86		%	11.57		%	11.55		%	11.38		%			12.86		%	11.55		%
Total risk-based capital ratio			15.00		%	15.11		%	15.03		%	13.84		%	12.31		%	12.17		%			15.00		%	12.31		%



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																				Q2 2017 -		As of
	2017							2016												Q4 2016		June 30,
		Second			First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2017			2016			Variance
Loans not purchased
Commercial, financial, agricultural		$	657,713		$	626,237		$	589,290		$	554,151		$	530,258		$	520,463		11.61		$	657,713		$	530,258		24.04
Lease Financing		49,066			47,816			46,841			45,510			43,116			41,937			4.75		49,066			43,116			13.80
Real estate- construction		424,861			378,061			483,926			415,934			381,690			325,188			(12.21	)	424,861			381,690			11.31
Real estate - 1-4 family mortgages		1,551,934			1,485,663			1,422,543			1,388,066			1,328,948			1,263,879			8.85		1,551,934			1,328,948			16.78
Real estate - commercial mortgages		2,281,220			2,203,639			2,075,137			2,030,626			1,918,778			1,836,053			9.93		2,281,220			1,918,778			18.89
Installment loans to individuals		94,104			92,669			92,648			91,739			89,759			86,893			1.57		94,104			89,759			4.84
Loans, net of unearned		$	5,058,898		$	4,834,085		$	4,710,385		$	4,526,026		$	4,292,549		$	4,074,413		7.33		$	5,058,898		$	4,292,549		17.85
Loans purchased and covered by FDIC loss-share agreements
Commercial, financial, agricultural		$	—		$	—		$	—		$	14		$	607		$	624		—		$	—		$	607		—
Lease Financing		—			—			—			—			—			—			—		—			—			—
Real estate- construction		—			—			—			—			83			86			—		—			83			—
Real estate - 1-4 family mortgages		—			—			—			30,304			34,640			36,350			—		—			34,640			—
Real estate - commercial mortgages		—			—			—			180			6,790			7,870			—		—			6,790			—
Installment loans to individuals		—			—			—			35			51			59			—		—			51			—
Loans, net of unearned		$	—		$	—		$	—		$	30,533		$	42,171		$	44,989		—		$	—		$	42,171		—
Loans purchased and not covered by FDIC loss-share agreements
Commercial, financial, agricultural		$	102,869		$	115,229		$	128,200		$	139,961		$	152,071		$	133,847		(19.76	)	$	102,869		$	152,071		(32.35	)
Lease Financing		—			—			—			—			—			—			—		—			—			—
Real estate- construction		35,946			35,673			68,753			71,704			70,958			52,300			(47.72	)	35,946			70,958			(49.34	)
Real estate - 1-4 family mortgages		400,460			431,904			452,447			452,274			485,458			477,266			(11.49	)	400,460			485,458			(17.51	)
Real estate - commercial mortgages		759,743			804,790			823,758			864,825			898,108			763,587			(7.77	)	759,743			898,108			(15.41	)
Installment loans to individuals		13,091			14,124			15,979			19,910			24,114			26,328			(18.07	)	13,091			24,114			(45.71	)
Loans, net of unearned		$	1,312,109		$	1,401,720		$	1,489,137		$	1,548,674		$	1,630,709		$	1,453,328		(11.89	)	$	1,312,109		$	1,630,709		(19.54	)
Asset quality data
Assets not purchased:
Nonaccrual loans		$	11,413		$	12,629		$	11,273		$	12,454		$	10,591		$	11,690		1.24		$	11,413		$	10,591		7.76
Loans 90 past due or more		1,283			2,175			2,079			2,315			1,428			2,495			(38.29	)	1,283			1,428			(10.15	)
Nonperforming loans		12,696			14,804			13,352			14,769			12,019			14,185			(4.91	)	12,696			12,019			5.63
Other real estate owned		4,305			5,056			5,929			8,429			9,575			12,810			(27.39	)	4,305			9,575			(55.04	)
Nonperforming assets not purchased		$	17,001		$	19,860		$	19,281		$	23,198		$	21,594		$	26,995		(11.83	)	$	17,001		$	21,594		(21.27	)
Assets purchased and subject to loss share:
Nonaccrual loans		$	—		$	—		$	—		$	1,628		$	2,060		$	2,708		—		$	—		$	2,060		—
Loans 90 past due or more		—			—			—			786			2,076			4,343			—		—			2,076			—
Nonperforming loans		—			—			—			2,414			4,136			7,051			—		—			4,136			—
Other real estate owned		—			—			—			926			2,618			1,373			—		—			2,618			—
Nonperforming assets purchased and subject to loss share		$	—		$	—		$	—		$	3,340		$	6,754		$	8,424		—		$	—		$	6,754		—
Assets purchased and not subject to loss share:
Nonaccrual loans		$	5,927		$	8,495		$	11,347		$	12,105		$	13,312		$	12,368		(47.77	)	$	5,927		$	13,312		(55.48	)
Loans 90 past due or more		8,128			11,897			10,815			12,619			13,650			10,805			(24.85	)	8,128			13,650			(40.45	)
Nonperforming loans		14,055			20,392			22,162			24,724			26,962			23,173			(36.58	)	14,055			26,962			(47.87	)
Other real estate owned		15,409			16,266			17,370			16,973			17,146			19,051			(11.29	)	15,409			17,146			(10.13	)
Nonperforming assets purchased		$	29,464		$	36,658		$	39,532		$	41,697		$	44,108		$	42,224		(25.47	)	$	29,464		$	44,108		(33.20	)
Net loan charge-offs (recoveries)		$	524		$	1,314		$	4,837		$	824		$	191		$	1,378		(89.17	)	$	1,838		$	1,569		17.14
Allowance for loan losses		$	44,149		$	42,923		$	42,737		$	45,924		$	44,098		$	42,859		3.30		$	44,149		$	44,098		0.12
Annualized net loan charge-offs / average loans		0.03		%	0.09		%	0.31		%	0.05		%	0.01		%	0.10		%			0.06		%	0.06		%
Nonperforming loans / total loans*		0.42		%	0.56		%	0.57		%	0.69		%	0.72		%	0.80		%			0.42		%	0.72		%
Nonperforming assets / total assets*		0.52		%	0.64		%	0.68		%	0.80		%	0.85		%	0.95		%			0.52		%	0.85		%
Allowance for loan losses / total loans*		0.69		%	0.69		%	0.69		%	0.75		%	0.74		%	0.77		%			0.69		%	0.74		%
Allowance for loan losses / nonperforming loans*		165.04		%	121.95		%	120.34		%	109.59		%	102.28		%	96.51		%			165.04		%	102.28		%
Nonperforming loans / total loans**		0.25		%	0.31		%	0.28		%	0.33		%	0.28		%	0.35		%			0.25		%	0.28		%
Nonperforming assets / total assets**		0.19		%	0.23		%	0.22		%	0.27		%	0.25		%	0.33		%			0.19		%	0.25		%
Allowance for loan losses / total loans**		0.87		%	0.89		%	0.91		%	1.01		%	1.03		%	1.05		%			0.87		%	1.03		%
Allowance for loan losses / nonperforming loans**		347.74		%	289.94		%	320.08		%	310.95		%	366.90		%	302.14		%			347.74		%	366.90		%
*Based on all assets (includes purchased assets)
**Excludes all assets purchased



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

	Three Months Ended																		For The Six Months Ending
	June 30, 2017						March 31, 2017						June 30, 2016						June 30, 2017						June 30, 2016
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Assets
Interest-earning assets:
Loans
Not purchased	$	4,938,922	$	54,955	4.46	%	$	4,752,628	$	51,143	4.36	%	$	4,190,646	$	46,012	4.42	%	$	4,846,290	$	106,098	4.41	%	$	4,065,861	$	89,173	4.41	%
Purchased	1,354,575		23,902		7.08		1,446,077		22,567		6.33		1,665,623		27,623		6.67		1,400,073		46,469		6.69		1,562,468		50,557		6.51
Purchased and covered⁽¹⁾	—		—		—		—		—		—		41,381		1,073		10.43		—		—		—		62,727		2,208		7.08
Total loans	6,293,497		78,857		5.03		6,198,705		73,710		4.82		5,897,650		74,708		5.09		6,246,363		152,567		4.93		5,691,056		141,938		5.02
Mortgage loans held for sale	168,650		1,831		4.35		112,105		1,148		4.15		306,011		2,472		3.25		140,534		2,980		4.28		261,851		4,845		3.72
Securities:
Taxable⁽²⁾	737,494		4,340		2.36		704,805		4,070		2.34		755,220		4,321		2.30		721,240		8,410		2.35		751,887		8,457		2.26
Tax-exempt	331,750		3,891		4.70		338,892		4,297		5.14		356,611		4,178		4.71		335,301		8,188		4.92		355,804		8,384		4.74
Total securities	1,069,244		8,231		3.09		1,043,697		8,367		3.25		1,111,831		8,499		3.07		1,056,541		16,598		3.17		1,107,691		16,841		3.06
Interest-bearing balances with banks	126,458		510		1.62		314,075		556		0.72		80,791		104		0.52		219,748		1,065		0.98		70,967		177		0.50
Total interest-earning assets	7,657,849		89,429		4.68		7,668,582		83,781		4.43		7,396,283		85,783		4.66		7,663,186		173,210		4.56		7,131,565		163,801		4.62
Cash and due from banks	116,783						131,874						139,681						124,287						139,039
Intangible assets	492,349						493,816						499,503						493,078						486,749
FDIC loss-share indemnification asset	—						—						5,969						—						6,187
Other assets	453,679						465,176						500,382						459,396						489,821
Total assets	$	8,720,660					$	8,759,448					$	8,541,818					$	8,739,947					$	8,253,361
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand⁽³⁾	3,368,363		1,917		0.23		3,410,606		1,813		0.22		3,111,718		1,421		0.18		3,389,368		3,730		0.22		3,034,314		2,762		0.18
Savings deposits	568,535		98		0.07		553,985		96		0.07		526,596		93		0.07		561,300		194		0.07		517,304		182		0.07
Time deposits	1,603,800		3,300		0.83		1,617,262		3,240		0.81		1,607,092		2,906		0.73		1,610,494		6,539		0.82		1,550,373		5,436		0.71
Total interest-bearing deposits	5,540,698		5,315		0.38		5,581,853		5,149		0.37		5,245,406		4,420		0.34		5,561,162		10,463		0.38		5,101,991		8,380		0.33
Borrowed funds	233,542		2,661		4.57		282,008		2,725		3.92		594,459		2,431		1.64		257,641		5,387		4.22		566,921		4,676		1.66
Total interest-bearing liabilities	5,774,240		7,976		0.55		5,863,861		7,874		0.54		5,839,865		6,851		0.47		5,818,803		15,850		0.55		5,668,912		13,056		0.46
Noninterest-bearing deposits	1,608,467						1,558,809						1,477,380						1,583,775						1,397,382
Other liabilities	79,018						89,875						103,275						84,417						100,889
Shareholders’ equity	1,258,935						1,246,903						1,121,298						1,252,952						1,086,178
Total liabilities and shareholders’ equity	$	8,720,660					$	8,759,448					$	8,541,818					$	8,739,947					$	8,253,361
Net interest income/ net interest margin			$	81,453	4.27	%			$	75,907	4.01	%			$	78,932	4.29	%			$	157,360	4.14	%			$	150,745	4.25	%


⁽¹⁾ Represents information associated with purchased loans covered under loss sharing agreements prior to their termination on December 8, 2016.
⁽²⁾ U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which we operate.
⁽³⁾ Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
									RECONCILIATION OF GAAP TO NON-GAAP
																					Six Months Ended
		2017							2016												June 30,
			Second			First			Fourth			Third			Second			First
			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			2017			2016
Net income (GAAP)			$	25,284		$	23,972		$	23,635		$	23,179		$	22,900		$	21,216		$	49,256		$	44,116
	Amortization of intangibles, net of tax		1,013			1,064			1,094			1,119			1,171			1,134			2,077			2,305
Tangible net income (non-GAAP)			$	26,297		$	25,036		$	24,729		$	24,298		$	24,071		$	22,350		$	51,333		$	46,421

Average shareholders' equity (GAAP)			$	1,258,935		$	1,246,903		$	1,155,749		$	1,135,073		$	1,121,298		$	1,050,668		$	1,252,952		$	1,086,178
	Intangibles		492,349			493,816			495,404			497,064			499,503			473,852			493,078			486,749
Average tangible s/h's equity (non-GAAP)			$	766,586		$	753,087		$	660,345		$	638,009		$	621,795		$	576,816		$	759,874		$	599,429

Average total assets (GAAP)			$	8,720,660		$	8,759,448		$	8,591,795		$	8,562,199		$	8,541,818		$	7,961,700		$	8,739,947		$	8,253,361
	Intangibles		492,349			493,816			495,404			497,064			499,503			473,852			493,078			486,749
Average tangible assets (non-GAAP)			$	8,228,311		$	8,265,632		$	8,096,391		$	8,065,135		$	8,042,315		$	7,487,848		$	8,246,869		$	7,766,612

Actual shareholders' equity (GAAP)			$	1,271,786		$	1,251,065		$	1,232,883		$	1,142,247		$	1,124,256		$	1,053,178		$	1,271,786		$	1,124,256
	Intangibles		491,552			493,045			494,608			496,233			497,917			476,539			491,552			497,917
Actual tangible s/h's equity (non-GAAP)			$	780,234		$	758,020		$	738,275		$	646,014		$	626,339		$	576,639		$	780,234		$	626,339

Actual total assets (GAAP)			$	8,872,272		$	8,764,711		$	8,699,851		$	8,542,471		$	8,529,566		$	8,146,229		$	8,872,272		$	8,529,566
	Intangibles		491,552			493,045			494,608			496,233			497,917			476,539			491,552			497,917
Actual tangible assets (non-GAAP)			$	8,380,720		$	8,271,666		$	8,205,243		$	8,046,238		$	8,031,649		$	7,669,690		$	8,380,720		$	8,031,649

(1) Return on Average Equity
Return on avg s/h's equity (GAAP)			8.06		%	7.80		%	8.14		%	8.12		%	8.21		%	8.12		%	7.93		%	8.17		%
	Effect of adjustment for intangible assets		5.70		%	5.69		%	6.76		%	7.03		%	7.36		%	7.46		%	5.70		%	7.41		%
Return on avg tangible s/h's equity (non-GAAP)			13.76		%	13.48		%	14.90		%	15.15		%	15.57		%	15.58		%	13.62		%	15.57		%

(2) Return on Average Assets
Return on (average) assets (GAAP)			1.16		%	1.11		%	1.09		%	1.08		%	1.08		%	1.07		%	1.14		%	1.07		%
	Effect of adjustment for intangible assets		0.12		%	0.12		%	0.12		%	0.12		%	0.13		%	0.13		%	0.12		%	0.13		%
Return on average tangible assets (non-GAAP)			1.28		%	1.23		%	1.22		%	1.20		%	1.20		%	1.20		%	1.26		%	1.20		%

(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP)			14.33		%	14.27		%	14.17		%	13.37		%	13.18		%	12.93		%	14.33		%	13.18		%
	Effect of adjustment for intangible assets		5.02		%	5.11		%	5.17		%	5.34		%	5.38		%	5.41		%	5.02		%	5.38		%
Tangible capital ratio (non-GAAP)			9.31		%	9.16		%	9.00		%	8.03		%	7.80		%	7.52		%	9.31		%	7.80		%

									CALCULATION OF EFFICIENCY RATIO

Interest income (FTE)			$	89,429		$	83,781		$	87,564		$	84,786		$	85,783		$	78,009		$	173,210		$	163,792
	Interest expense		7,976			7,874			7,791			7,301			6,851			6,205			15,850			13,056
Net Interest income (FTE)			$	81,453		$	75,907		$	79,773		$	77,485		$	78,932		$	71,804		$	157,360		$	150,736

Total noninterest income			$	34,265		$	32,021		$	30,255		$	38,272		$	35,586		$	33,302		$	66,286		$	68,888
	Securities gains (losses)		—			—			—			—			1,257			(71		)	—			1,186
Total noninterest income			$	34,265		$	32,021		$	30,255		$	38,272		$	34,329		$	33,373		$	66,286		$	67,702
Total Income (FTE)			$	115,718		$	107,928		$	110,028		$	115,757		$	113,261		$	105,177		$	223,646		$	218,438

Total noninterest expense			$	74,841		$	69,309		$	71,558		$	76,468		$	77,259		$	69,814		$	144,150		$	147,073
	Amortization of intangibles		1,493			1,563			1,624			1,684			1,742			1,697			3,056			3,439
	Merger-related expenses		3,044			345			—			268			2,807			948			3,389			3,755
	Debt extinguishment penalty		—			205			—			2,210			329			—			205			329
	Loss share termination		—			—			2,053			—			—			—			—			—
Total noninterest expense			$	70,304		$	67,196		$	67,881		$	72,306		$	72,381		$	67,169		$	137,500		$	139,550

(4) Efficiency Ratio			60.75		%	62.26		%	61.69		%	62.46		%	63.91		%	63.86		%	61.48		%	63.89		%

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