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
	First Vice President	Executive Vice President
	Director of Marketing	Chief Financial Officer
	(662) 680-1219	(662) 680-1450
	joxford@renasant.com	kchapman@renasant.com

RENASANT CORPORATION ANNOUNCES

DIVIDEND INCREASE AND EARNINGS FOR THE FIRST

QUARTER OF 2018

TUPELO, MISSISSIPPI (April 24, 2018) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced earnings results for the first quarter of 2018. Net income for the first quarter of 2018 was approximately $33.8 million, as compared to $24.0 million for the first quarter of 2017. Basic and diluted earnings per share (“EPS”) were $0.69 and $0.68, respectively, for the first quarter of 2018, as compared to basic and diluted EPS of $0.54 for the first quarter of 2017.

On April 24, 2018, the Board of Directors of the Company declared a quarterly cash dividend of $0.20 per share to be paid June 30, 2018, to shareholders of record as of June 16, 2018. The per share dividend represents a $0.01 increase from the dividend paid in the previous quarter and the third increase to the Company’s quarterly dividend since March 31, 2016.

On March 28, 2018, the Company and Brand Group Holdings, Inc. (“Brand”), the parent company of The Brand Banking Company, jointly announced the signing of a definitive merger agreement pursuant to which the Company will acquire Brand for a combination of cash and Renasant common stock. Brand operates 13 locations throughout the greater Atlanta market. As of December 31, 2017,

Brand had approximately $2.4 billion in total assets, which included approximately $1.9 billion in total loans (excluding mortgage loans held for sale), and approximately $1.9 billion in total deposits.

Impact from Infrequent or Nonrecurring Items

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 earnings for the dates presented (in thousands):



	Three months ended March 31, 2018						Three months ended March 31, 2017
	Pre-tax		After-tax		Diluted EPS		Pre-tax		After-tax		Diluted EPS
Earnings, as reported	$	43,499	$	33,826	$	0.68	$	35,227	$	23,972	$	0.54
Merger and conversion expenses	900		700		0.02		345		235		0.01
Debt prepayment penalty	—		—		—		205		140		—
Earnings, adjusted	44,399		34,526		0.70		35,777		24,347		0.55

“Renasant opened the year with very strong results. Our continued focus on profitability in this competitive interest rate environment coupled with our strategies around expense containment were the driving factors behind our record earnings for the quarter,” commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. “We’re also excited to announce an increase in our quarterly dividend, effective in the second quarter of 2018. This increase represents the third dividend increase in the last eight quarters and boosts our annual cash dividend from $0.76 to $0.80. It is also my pleasure to announce that, effective May 1, 2018, our Board of Directors has elected Mitch Waycaster as Chief Executive Officer of both Renasant Corporation and Renasant Bank and Kevin Chapman as Chief Operating Officer, in addition to his role as Chief Financial Officer, of both Renasant Corporation and Renasant Bank.”

C. Mitchell Waycaster added, “Our strong results for the first quarter of 2018 demonstrate that Renasant is positioned well for a successful year. Furthermore, we believe our proposed merger with Brand, which we currently expect to complete in the third quarter of 2018, will bolster our prospects as we team with an experienced group of management and expand our presence and offerings in the Atlanta metro area. Finally, as Robin transitions into his new role as Executive Chairman of the Company, the entire Renasant family thanks him for his honorable dedication to Renasant and exemplary leadership as the Company grew from $1.2 billion in assets to $10.2 billion

in assets under his oversight as CEO. We look to capitalize on this legacy and enjoy continued success into the future.”

Profitability Metrics

The following table presents the Company’s profitability metrics for the three months ended March 31, 2018, including and excluding the impact of after-tax merger and conversion expenses, which are non-recurring in nature:



	Three Months Ended
	March 31, 2018
	As Reported		Excluding nonrecurring charges
Return on average assets	1.36	%	1.39%
Return on average tangible assets	1.51	%	1.54%
Return on average equity	9.00	%	9.19%
Return on average tangible equity	16.02	%	16.34%

Return on average tangible assets and return on average tangible equity are non-GAAP financial measures. A reconciliation of these financial measures from GAAP to non-GAAP is included in the table at the end of this release.

Other financial highlights from the first quarter of 2018 include the following:


•	Total assets were $10.2 billion at March 31, 2018, as compared to $9.8 billion at December 31, 2017.

•

Total loans increased to $7.7 billion at March 31, 2018, from $7.6 billion at December 31, 2017, which represents an annual linked quarter growth rate of 4.14%. Loans not purchased were $5.8 billion at March 31, 2018, as compared to $5.6 billion at December 31, 2017.The following table reconciles 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
	March 31,			December 31,			March 31,
	2018			2017			2017
Taxable equivalent interest income on loans (as reported)	$	93,373		$	97,307		$	73,710
Interest income collected (foregone) on problem loans	358			4,543			556
Accretable yield recognized on purchased loans⁽¹⁾	6,118			5,878			5,604
Interest income on loans (adjusted)	$	86,897		$	86,886		$	67,550

Average loans	$	7,646,991		$	7,535,199		$	6,198,705

Loan yield, as reported	4.95		%	5.07		%	4.82		%
Loan yield, adjusted	4.61		%	4.52		%	4.42		%


⁽¹⁾	Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $3,358, $2,747 and $2,731 for the three months ended March 31, 2018, December 31, 2017, and March 31, 2017, respectively, which increased loan yield by 18 basis points, 14 basis points and 18 basis points for the same periods, respectively.

•

Total deposits increased to $8.4 billion at March 31, 2018, from $7.9 billion at December 31, 2017. For the first quarter of 2018, the cost of total deposits was 40 basis points, as compared to 36 basis points for the fourth quarter of 2017 and 29 basis points for the first quarter of 2017. The following table presents the mix and cost of all funding sources for the first quarter of 2018 as compared to the fourth quarter of 2018 and the first quarter of 2017.



	Percentage of Total Average Deposits and Borrowed Funds						Cost of Funds
	Three Months Ended						Three Months Ended
	March 31,		December 31,		March 31,		March 31,		December 31,		March 31,
	2018		2017		2017		2018		2017		2017
Noninterest-bearing demand	21.52	%	21.74	%	21.00	%	—	%	—	%	—	%
Interest-bearing demand	46.31		43.80		45.96		0.35		0.32		0.22
Savings	6.88		6.63		7.46		0.11		0.07		0.07
Time deposits	21.56		21.12		21.79		1.00		0.90		0.81
Borrowed Funds	3.73		6.71		3.79		3.98		2.74		3.92
Total deposits and borrowed funds	100.00	%	100.00	%	100.00	%	0.53	%	0.52	%	0.43	%

•

Net interest income was $89.2 million for the first quarter of 2018, as compared to $93.3 million for the fourth quarter of 2017 and $74.0 million for the first quarter of 2017. Net interest margin was 4.20% for the first quarter of 2018, as compared to 4.25% for the fourth quarter of 2017 and 4.01% for the first quarter of 2017. 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
	March 31,			December 31,			March 31,
	2018			2017			2017
Taxable equivalent net interest income (as reported)	$	90,807		$	96,448		$	75,907
Interest income collected (foregone) on problem loans	358			4,543			556
Accretable yield recognized on purchased loans ⁽¹⁾	6,118			5,878			5,604
Taxable equivalent net interest income (adjusted)	$	84,331		$	86,027		$	69,747

Average earning assets	$	8,760,679		$	8,913,675		$	7,668,582

Net interest margin, as reported	4.20		%	4.25		%	4.01		%
Net interest margin, adjusted	3.90		%	3.78		%	3.69		%


⁽¹⁾	Includes additional interest income recognized in connection with the acceleration of paydowns and payoffs from purchased loans of $3,358, $2,747 and $2,731 for the three months ended March 31, 2018,

December 31, 2017, and March 31, 2017, respectively, which increased net interest margin by 16 basis points, 12 basis points and 14 basis points for the same periods, respectively.

•

Noninterest income for the first quarter of 2018 was $34.0 million, as compared to $32.4 million for the fourth quarter of 2017 and $32.0 million for the first quarter of 2017. The addition of Metropolitan, coupled with growth in fee income on legacy Renasant loan and deposit products, contributed to the growth in service charges on deposits and fees and commissions on loans and deposits for the first quarter of 2018 as compared to the same period in 2017. Mortgage banking income for the first quarter of 2018 was $11.0 million, compared to $9.9 million for the fourth quarter of 2017 and $10.5 million for the first quarter of 2017.


•	Noninterest expense was $77.9 million for the first quarter of 2018, as compared to $76.8 million for the fourth quarter of 2017 and $69.3 million for the first quarter of 2017. The impact from the addition of the Metropolitan operations has been slightly offset by expense containment efforts through contract renegotiations.

Asset Quality Metrics

Total nonperforming assets were $37.5 million at March 31, 2018, a decrease of $1.9 million from December 31, 2017, and consisted of $22.9 million in nonperforming loans (loans 90 days or more past due and nonaccrual loans) and $14.6 million in other real estate owned (“OREO”).

The Company’s nonperforming loans and OREO that were purchased in previous acquisitions (collectively referred to as “purchased nonperforming assets”) were $9.9 million and $9.8 million, respectively, at March 31, 2018, as compared to $10.2 million and $11.5 million, respectively, at December 31, 2017. 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.


•	Excluding purchased loans, nonperforming loans decreased to $13.0 million, or 0.22% of total loans, at March 31, 2018, from $13.3 million, or 0.24% of total loans, at December 31, 2017. Early stage delinquencies, or loans 30-to-89 days past due, as a percentage of total loans were 0.33% at March 31, 2018, as compared to 0.30% at December 31, 2017.


•	Excluding purchased OREO, OREO was $4.8 million at March 31, 2018, as compared to $4.4 million at December 31, 2017. OREO sales totaled $677 thousand in the first quarter of 2018.


•	The allowance for loan losses was 0.60% of total loans at March 31, 2018, as compared to 0.61% at December 31, 2017. The allowance for loan losses was 0.80% of non-purchased loans at March 31, 2018, as compared to 0.83% at December 31, 2017.


•	Net loan charge-offs were $1.6 million, or 0.08% on an annualized basis of average total loans, for the first quarter of 2018, as compared to $470 thousand, or 0.02% on

an annualized basis of average total loans, for the fourth quarter of 2017 and $1.3 million, or 0.09% on an annualized basis of average total loans, for the first quarter of 2017.


•	The provision for loan losses was $1.8 million for the first quarter of 2018, as compared to $2.2 million for the fourth quarter of 2017 and $1.5 million for the first quarter of 2017.

Capital Ratios


•	At March 31, 2018, Tier 1 leverage capital ratio was 10.61%, Common Equity Tier 1 ratio was 11.38%, Tier 1 risk-based capital ratio was 12.41%, and total risk-based capital ratio was 14.44%. All regulatory ratios exceed the minimums required to be considered “well-capitalized.”


•	Tangible common equity ratio was 9.36% at March 31, 2018, as compared to 9.56% at December 31, 2017.

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, April 25, 2018.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or https://services.choruscall.com/links/rnst180425.html. 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 10119302 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until May 9, 2018.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 114-year-old financial services institution. Renasant has assets of approximately $10.2 billion and operates more than 180 banking, mortgage, wealth management 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,” “approximately,” “should” and variations of such words 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. 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 believes that the assumptions underlying the Company’s forward-looking statements are reasonable, but any of the assumptions could prove to be inaccurate. Investors are urged to carefully consider the risks described in the Company’s filings with the Securities and Exchange Commission (the “SEC”) from time to time, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.renasant.com and the SEC’s website at www.sec.gov. The Company expressly disclaims any 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 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 most directly comparable GAAP financial measure is presented with these non-GAAP measures. 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.”

None of the non-GAAP financial information that the Company has included in this release is 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 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)
																	Q1 2018 -		For The Three Months Ending
		2018			2017												Q4 2017		March 31,
		First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2018			2017			Variance
Statement of earnings
Interest income - taxable equivalent basis		$	101,947		$	107,773		$	102,613		$	89,429		$	83,781		(5.41	)	$	101,947		$	83,781		21.68
Interest income		$	100,380		$	104,587		$	100,695		$	87,579		$	81,889		(4.02	)	$	100,380		$	81,889		22.58
Interest expense		11,140			11,325			10,678			7,976			7,874			(1.63	)	11,140			7,874			41.48
	Net interest income	89,240			93,262			90,017			79,603			74,015			(4.31	)	89,240			74,015			20.57
Provision for loan losses		1,750			2,150			2,150			1,750			1,500			(18.60	)	1,750			1,500			16.67
	Net interest income after provision	87,490			91,112			87,867			77,853			72,515			(3.98	)	87,490			72,515			20.65
Service charges on deposit accounts		8,473			8,659			8,676			7,958			7,931			(2.15	)	8,473			7,931			6.83
Fees and commissions on loans and deposits		5,685			5,647			5,618			5,470			5,199			0.67		5,685			5,199			9.35
Insurance commissions and fees		2,005			1,955			2,365			2,181			1,860			2.56		2,005			1,860			7.80
Wealth management revenue		3,262			3,000			2,963			3,037			2,884			8.73		3,262			2,884			13.11
Securities gains (losses)		—			91			57			—			—			—		—			—			—
Mortgage banking income		10,960			9,871			10,616			12,424			10,504			11.03		10,960			10,504			4.34
Other		3,568			3,218			3,118			3,195			3,643			10.88		3,568			3,643			(2.06	)
	Total noninterest income	33,953			32,441			33,413			34,265			32,021			4.66		33,953			32,021			6.03
Salaries and employee benefits		48,784			48,787			48,530			45,014			42,209			(0.01	)	48,784			42,209			15.58
Data processing		4,244			4,226			4,179			3,835			4,234			0.43		4,244			4,234			0.24
Occupancy and equipment		9,822			10,153			9,470			8,814			9,319			(3.26	)	9,822			9,319			5.40
Other real estate		657			554			603			781			532			18.59		657			532			23.50
Amortization of intangibles		1,651			1,708			1,766			1,493			1,563			(3.34	)	1,651			1,563			5.63
Merger and conversion related expenses		900			723			6,266			3,044			345			24.48		900			345			160.87
Debt extinguishment penalty		—			—			—			—			205			—		—			205			(100.00	)
Other		11,886			10,657			9,846			11,860			10,902			11.53		11,886			10,902			9.03
	Total noninterest expense	77,944			76,808			80,660			74,841			69,309			1.48		77,944			69,309			12.46
Income before income taxes		43,499			46,745			40,620			37,277			35,227			(6.94	)	43,499			35,227			23.48
Income taxes		9,673			30,234			14,199			11,993			11,255			(68.01	)	9,673			11,255			(14.06	)
	Net income	$	33,826		$	16,511		$	26,421		$	25,284		$	23,972		104.87		$	33,826		$	23,972		41.11
Basic earnings per share		$	0.69		$	0.33		$	0.54		$	0.57		$	0.54		109.09		$	0.69		$	0.54		27.78
Diluted earnings per share		0.68			0.33			0.53			0.57			0.54			106.06		0.68			0.54			25.93
Average basic shares outstanding		49,356,417			49,320,377			49,316,572			44,415,423			44,364,337			0.07		49,356,417			44,364,337			11.25
Average diluted shares outstanding		49,502,950			49,456,289			49,435,225			44,523,541			44,480,499			0.09		49,502,950			44,480,499			11.29
Common shares outstanding		49,392,978			49,321,231			49,320,225			44,430,335			44,394,707			0.15		49,392,978			44,394,707			11.26
Cash dividend per common share		$	0.19		$	0.19		$	0.18		$	0.18		$	0.18		—		$	0.19		$	0.18		5.56
Performance ratios
Return on avg shareholders' equity		9.00		%	4.31		%	7.01		%	8.06		%	7.80		%			9.00		%	7.80		%
Return on avg tangible s/h's equity (1)		16.02		%	7.94		%	12.74		%	13.76		%	13.48		%			16.02		%	13.48		%
Return on avg assets		1.36		%	0.64		%	1.02		%	1.16		%	1.11		%			1.36		%	1.11		%
Return on avg tangible assets (2)		1.51		%	0.73		%	1.13		%	1.28		%	1.23		%			1.51		%	1.23		%
Net interest margin (FTE)		4.20		%	4.25		%	4.08		%	4.27		%	4.01		%			4.20		%	4.01		%
Yield on earning assets (FTE)		4.72		%	4.75		%	4.55		%	4.68		%	4.43		%			4.72		%	4.43		%
Cost of funding		0.53		%	0.52		%	0.49		%	0.43		%	0.43		%			0.53		%	0.43		%
Average earning assets to average assets		87.12		%	86.92		%	87.03		%	87.81		%	87.55		%			87.12		%	87.55		%
Average loans to average deposits		94.04		%	93.51		%	90.96		%	88.03		%	86.81		%			94.04		%	86.81		%
Noninterest income (less securities gains/
	losses) to average assets	1.37		%	1.25		%	1.29		%	1.58		%	1.48		%			1.37		%	1.48		%
Noninterest expense (less debt prepayment penalties/
	penalties/merger-related expenses) to
	average assets	3.11		%	2.94		%	2.87		%	3.30		%	3.18		%			3.11		%	3.18		%
Net overhead ratio		1.74		%	1.69		%	1.58		%	1.72		%	1.70		%			1.74		%	1.70		%
Efficiency ratio (FTE) (4)		60.43		%	57.75		%	57.97		%	60.75		%	62.26		%			60.43		%	62.26		%



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																	Q1 2018 -		For The Three Months Ending
		2018			2017												Q4 2017		March 31,
		First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2018			2017			Variance
Average Balances
Total assets		$	10,055,755		$	10,254,774		$	10,277,476		$	8,720,660		$	8,759,448		(1.94	)	$	10,055,755		$	8,759,448		14.80
Earning assets		8,760,679			8,913,675			8,944,067			7,657,848			7,668,582			(1.72	)	8,760,679			7,668,582			14.24
Securities		833,076			1,043,075			1,147,157			1,069,244			1,043,697			(20.13	)	833,076			1,043,697			(20.18	)
Mortgage loans held for sale		152,299			188,795			226,512			168,650			112,105			(19.33	)	152,299			112,105			35.85
Loans, net of unearned		7,646,991			7,535,199			7,375,410			6,293,497			6,198,705			1.48		7,646,991			6,198,705			23.36
Intangibles		634,898			636,533			636,977			492,349			493,816			(0.26	)	634,898			493,816			28.57
Noninterest-bearing deposits		$	1,817,848		$	1,877,789		$	1,849,396		$	1,608,467		$	1,558,809		(3.19	)	$	1,817,848		$	1,558,809		16.62
Interest-bearing deposits		6,314,114			6,180,075			6,259,249			5,540,698			5,581,853			2.17		6,314,114			5,581,853			13.12
Total deposits		8,131,962			8,057,864			8,108,645			7,149,165			7,140,662			0.92		8,131,962			7,140,662			13.88
Borrowed funds		314,228			579,920			575,816			233,542			282,008			(45.82	)	314,228			282,008			11.43
Shareholders' equity		1,523,873			1,518,131			1,495,591			1,258,935			1,246,903			0.38		1,523,873			1,246,903			22.21


																	Q1 2018 -		As of
		2018			2017												Q4 2017		March 31,
		First			Fourth			Third			Second			First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2018			2017			Variance
Balances at period end
Total assets		$	10,238,313		$	9,829,981		$	10,323,687		$	8,872,272		$	8,764,711		4.15		$	10,238,313		$	8,764,711		16.81
Earning assets		8,938,117			8,493,741			8,943,570			7,763,775			7,690,045			5.23		8,938,117			7,690,045			16.23
Securities		948,365			671,488			1,150,459			1,076,625			1,044,862			41.23		948,365			1,044,862			(9.24	)
Mortgage loans held for sale		204,472			108,316			207,288			232,398			158,619			88.77		204,472			158,619			28.91
Non purchased loans		5,830,122			5,588,556			5,293,467			5,058,898			4,834,085			4.32		5,830,122			4,834,085			20.60
Purchased loans		1,867,948			2,031,766			2,155,141			1,312,109			1,401,720			(8.06	)	1,867,948			1,401,720			33.26
	Total loans	7,698,070			7,620,322			7,448,608			6,371,007			6,235,805			1.02		7,698,070			6,235,805			23.45
Intangibles		633,905			635,556			637,264			491,552			493,045			(0.26	)	633,905			493,045			28.57
Noninterest-bearing deposits		$	1,861,136		$	1,840,424		$	1,835,300		$	1,642,863		$	1,579,581		1.13		$	1,861,136		$	1,579,581		17.82
Interest-bearing deposits		6,496,633			6,080,651			6,283,218			5,559,162			5,651,269			6.84		6,496,633			5,651,269			14.96
	Total deposits	8,357,769			7,921,075			8,118,518			7,202,025			7,230,850			5.51		8,357,769			7,230,850			15.58
Borrowed funds		265,191			297,360			591,933			312,077			202,006			(10.82	)	265,191			202,006			31.28
Shareholders' equity		1,532,765			1,514,983			1,511,826			1,271,786			1,251,065			1.17		1,532,765			1,251,065			22.52
Market value per common share		$	42.56		$	40.89		$	42.90		$	43.74		$	39.69		4.08		$	42.56		$	39.69		7.23
Book value per common share		31.03			30.72			30.65			28.62			28.18			1.02		31.03			28.18			10.11
Tangible book value per common share		18.20			17.83			17.73			17.56			17.07			2.07		18.20			17.07			6.59
Shareholders' equity to assets (actual)		14.97		%	15.41		%	14.64		%	14.33		%	14.27		%			14.97		%	14.27		%
Tangible capital ratio (3)		9.36		%	9.56		%	9.03		%	9.31		%	9.16		%			9.36		%	9.16		%
Leverage ratio		10.61		%	10.18		%	10.05		%	10.68		%	10.39		%			10.61		%	10.39		%
Common equity tier 1 capital ratio		11.38		%	11.34		%	11.21		%	11.65		%	11.69		%			11.38		%	11.69		%
Tier 1 risk-based capital ratio		12.41		%	12.39		%	12.26		%	12.86		%	12.93		%			12.41		%	12.93		%
Total risk-based capital ratio		14.44		%	14.46		%	14.30		%	15.00		%	15.11		%			14.44		%	15.11		%



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																Q1 2018 -		As of
	2018			2017												Q4 2017		March 31,
	First			Fourth			Third			Second			First			Percent								Percent
	Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2018			2017			Variance
Non purchased loans
Commercial, financial, agricultural	$	803,146		$	763,823		$	707,835		$	657,713		$	626,237		5.15		$	803,146		$	626,237		28.25
Lease Financing	52,536			54,013			51,902			49,066			47,816			(2.73	)	52,536			47,816			9.87
Real estate- construction	582,430			547,658			477,638			424,861			378,061			6.35		582,430			378,061			54.06
Real estate - 1-4 family mortgages	1,785,271			1,729,534			1,644,060			1,551,934			1,485,663			3.22		1,785,271			1,485,663			20.17
Real estate - commercial mortgages	2,503,680			2,390,076			2,311,340			2,281,220			2,203,639			4.75		2,503,680			2,203,639			13.62
Installment loans to individuals	103,059			103,452			100,692			94,104			92,669			(0.38	)	103,059			92,669			11.21
Loans, net of unearned	$	5,830,122		$	5,588,556		$	5,293,467		$	5,058,898		$	4,834,085		4.32		$	5,830,122		$	4,834,085		20.60
Purchased loans
Commercial, financial, agricultural	$	243,672		$	275,570		$	301,100		$	102,869		$	115,229		(11.58	)	$	243,672		$	115,229		111.47
Lease Financing	—			—			—			—			—			—		—			—			—
Real estate- construction	75,061			85,731			100,082			35,946			35,673			(12.45	)	75,061			35,673			110.41
Real estate - 1-4 family mortgages	572,830			614,187			651,792			400,460			431,904			(6.73	)	572,830			431,904			32.63
Real estate - commercial mortgages	960,273			1,037,454			1,079,049			759,743			804,790			(7.44	)	960,273			804,790			19.32
Installment loans to individuals	16,112			18,824			23,118			13,091			14,124			(14.41	)	16,112			14,124			14.08
Loans, net of unearned	$	1,867,948		$	2,031,766		$	2,155,141		$	1,312,109		$	1,401,720		(8.06	)	$	1,867,948		$	1,401,720		33.26
Asset quality data
Non purchased assets
Nonaccrual loans	$	9,403		$	10,250		$	9,970		$	11,413		$	12,629		(8.26	)	$	9,403		$	12,629		(25.54	)
Loans 90 past due or more	3,605			3,015			3,295			1,283			2,175			19.57		3,605			2,175			65.75
Nonperforming loans	13,008			13,265			13,265			12,696			14,804			(1.94	)	13,008			14,804			(12.13	)
Other real estate owned	4,801			4,410			4,524			4,305			5,056			8.87		4,801			5,056			(5.04	)
Nonperforming assets not purchased	$	17,809		$	17,675		$	17,789		$	17,001		$	19,860		0.76		$	17,809		$	19,860		(10.33	)
Purchased assets
Nonaccrual loans	$	5,340		$	4,424		$	4,868		$	5,927		$	8,495		20.71		$	5,340		$	8,495		(37.14	)
Loans 90 past due or more	4,564			5,731			7,349			8,128			11,897			(20.36	)	4,564			11,897			(61.64	)
Nonperforming loans	9,904			10,155			12,217			14,055			20,392			(2.47	)	9,904			20,392			(51.43	)
Other real estate owned	9,754			11,524			13,296			15,409			16,266			(15.36	)	9,754			16,266			(40.03	)
Nonperforming assets purchased	$	19,658		$	21,679		$	25,513		$	29,464		$	36,658		(9.32	)	$	19,658		$	36,658		(46.37	)
Net loan charge-offs (recoveries)	$	1,560		$	470		$	1,768		$	524		$	1,314		231.91		$	1,560		$	1,314		18.72
Allowance for loan losses	$	46,401		$	46,211		$	44,531		$	44,149		$	42,923		0.41		$	46,401		$	42,923		8.10
Annualized net loan charge-offs / average loans	0.08		%	0.02		%	0.10		%	0.03		%	0.09		%			0.08		%	0.09		%
Nonperforming loans / total loans*	0.30		%	0.31		%	0.34		%	0.42		%	0.56		%			0.30		%	0.56		%
Nonperforming assets / total assets*	0.37		%	0.40		%	0.42		%	0.52		%	0.64		%			0.37		%	0.64		%
Allowance for loan losses / total loans*	0.60		%	0.61		%	0.60		%	0.69		%	0.69		%			0.60		%	0.69		%
Allowance for loan losses / nonperforming loans*	202.52		%	197.31		%	174.75		%	165.04		%	121.95		%			202.52		%	121.95		%
Nonperforming loans / total loans**	0.22		%	0.24		%	0.25		%	0.25		%	0.31		%			0.22		%	0.31		%
Nonperforming assets / total assets**	0.17		%	0.18		%	0.17		%	0.19		%	0.23		%			0.17		%	0.23		%
Allowance for loan losses / total loans**	0.80		%	0.83		%	0.84		%	0.87		%	0.89		%			0.80		%	0.89		%
Allowance for loan losses / nonperforming loans**	356.71		%	348.37		%	335.70		%	347.74		%	289.94		%			356.71		%	289.94		%
*Based on all assets (includes purchased assets)
**Excludes all purchased assets



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

	Three Months Ended
	March 31, 2018						December 31, 2017						March 31, 2017
	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
Non purchased	$	5,689,210	$	64,611	4.61		$	5,446,973	$	62,994	4.51	%	$	4,752,628	$	51,143	4.36	%
Purchased	1,957,781		28,762		5.96		2,088,226		34,313		6.52		1,446,077		22,567		6.33
Total loans	7,646,991		93,373		4.95		7,535,199		97,307		5.07		6,198,705		73,710		4.82
Mortgage loans held for sale	152,299		1,671		4.45		188,795		2,071		4.35		112,105		1,148		4.15
Securities:
Taxable⁽¹⁾	606,642		3,914		2.62		735,923		4,240		2.29		704,805		4,070		2.34
Tax-exempt	226,434		2,406		4.31		307,152		3,604		4.66		338,892		4,297		5.14
Total securities	833,076		6,320		3.08		1,043,075		7,844		2.98		1,043,697		8,367		3.25
Interest-bearing balances with banks	128,313		583		1.84		146,606		551		1.49		314,075		556		0.72
Total interest-earning assets	8,760,679		101,947		4.72		8,913,675		107,773		4.75		7,668,582		83,781		4.43
Cash and due from banks	163,141						161,202						131,874
Intangible assets	634,898						636,533						493,816
Other assets	497,037						543,364						465,176
Total assets	$	10,055,755					$	10,254,774					$	8,759,448
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand⁽²⁾	3,911,802		3,407		0.35		3,783,056		3,072		0.32		3,410,606		1,813		0.22
Savings deposits	581,194		151		0.11		572,397		99		0.07		553,985		96		0.07
Time deposits	1,821,118		4,501		1.00		1,824,622		4,152		0.90		1,617,262		3,240		0.81
Total interest-bearing deposits	6,314,114		8,059		0.52		6,180,075		7,323		0.47		5,581,853		5,149		0.37
Borrowed funds	314,228		3,081		3.98		579,920		4,002		2.74		282,008		2,725		3.92
Total interest-bearing liabilities	6,628,342		11,140		0.68		6,759,995		11,325		0.66		5,863,861		7,874		0.54
Noninterest-bearing deposits	1,817,848						1,877,789						1,558,809
Other liabilities	85,692						98,859						89,875
Shareholders’ equity	1,523,873						1,518,131						1,246,903
Total liabilities and shareholders’ equity	$	10,055,755					$	10,254,774					$	8,759,448
Net interest income/ net interest margin			$	90,807	4.20	%			$	96,448	4.25	%			$	75,907	4.01	%
Cost of funding					0.53						0.52						0.43
Cost of total deposits					0.40						0.36						0.29

⁽¹⁾ U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which we operate.
⁽²⁾ 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
																	Three Months Ended
		2018			2017												March 31,
		First			Fourth			Third			Second			First
		Quarter			Quarter			Quarter			Quarter			Quarter			2018			2017
Net income (GAAP)		$	33,826		$	16,511		$	26,421		$	25,284		$	23,972		$	33,826		$	23,972
	Amortization of intangibles, net of tax	1,284			1,133			1,149			1,013			1,064			1,284			1,064
Tangible net income (non-GAAP)		$	35,110		$	17,644		$	27,570		$	26,297		$	25,036		$	35,110		$	25,036

Net income (GAAP)		$	33,826		16,511			$	26,421		$	25,284		$	23,972		$	33,826		$	23,972
	Merger & conversion expenses, net of tax	700			479			4,075			2,065			235			700			235
	Debt prepayment penalties, net of tax	—			—			—			—			140			—			140
	Write-down of net deferred tax assets	—			14,486			—			—			—			—			—
Net income with exclusions (non-GAAP)		$	34,526		$	31,476		$	30,496		$	27,349		$	24,347		$	34,526		$	24,347

Average shareholders' equity (GAAP)		$	1,523,873		$	1,518,131		$	1,495,591		$	1,258,935		$	1,246,903		$	1,523,873		$	1,246,903
	Intangibles	634,898			636,533			636,977			492,349			493,816			634,898			493,816
Average tangible s/h's equity (non-GAAP)		$	888,975		$	881,598		$	858,614		$	766,586		$	753,087		$	888,975		$	753,087

Average total assets (GAAP)		$	10,055,755		$	10,254,774		$	10,277,476		$	8,720,660		$	8,759,448		$	10,055,755		$	8,759,448
	Intangibles	634,898			636,533			636,977			492,349			493,816			634,898			493,816
Average tangible assets (non-GAAP)		$	9,420,857		$	9,618,241		$	9,640,499		$	8,228,311		$	8,265,632		$	9,420,857		$	8,265,632

Actual shareholders' equity (GAAP)		$	1,532,765		$	1,514,983		$	1,511,826		$	1,271,786		$	1,251,065		$	1,532,765		$	1,251,065
	Intangibles	633,905			635,556			637,264			491,552			493,045			633,905			493,045
Actual tangible s/h's equity (non-GAAP)		$	898,860		$	879,427		$	874,562		$	780,234		$	758,020		$	898,860		$	758,020

Actual total assets (GAAP)		$	10,238,313		$	9,829,981		$	10,323,687		$	8,872,272		$	8,764,711		$	10,238,313		$	8,764,711
	Intangibles	633,905			635,556			637,264			491,552			493,045			633,905			493,045
Actual tangible assets (non-GAAP)		$	9,604,408		$	9,194,425		$	9,686,423		$	8,380,720		$	8,271,666		$	9,604,408		$	8,271,666

(1) Return on Average Equity
Return on avg s/h's equity (GAAP)		9.00		%	4.31		%	7.01		%	8.06		%	7.80		%	9.00		%	7.80		%
	Effect of adjustment for intangible assets	7.02		%	3.63		%	5.73		%	5.70		%	5.68		%	7.02		%	5.68		%
Return on avg tangible s/h's equity (non-GAAP)		16.02		%	7.94		%	12.74		%	13.76		%	13.48		%	16.02		%	13.48		%

Return on avg s/h's equity with exclusions (GAAP)		9.19		%	8.23		%	8.09		%	8.71		%	7.92		%	9.19		%	7.92		%
	Effect of adjustment for intangible assets	7.15		%	6.44		%	6.53		%	6.13		%	5.76		%	7.15		%	5.76		%
Return on avg tangible s/h's equity with exclusion (non-GAAP)		16.34		%	14.67		%	14.62		%	14.84		%	13.68		%	16.34		%	13.68		%

(2) Return on Average Assets
Return on (average) assets (GAAP)		1.36		%	0.64		%	1.02		%	1.16		%	1.11		%	1.36		%	1.11		%
	Effect of adjustment for intangible assets	0.15		%	0.09		%	0.11		%	0.12		%	0.12		%	0.15		%	0.12		%
Return on average tangible assets (non-GAAP)		1.51		%	0.73		%	1.13		%	1.28		%	1.23		%	1.51		%	1.23		%

Return on avg assets with exclusions (GAAP)		1.39		%	1.22		%	1.18		%	1.26		%	1.13		%	1.39		%	1.13		%
	Effect of adjustment for intangible assets	0.15		%	0.13		%	0.12		%	0.12		%	0.12		%	0.15		%	0.12		%
Return on avg tangible assets with exclusions (non-GAAP)		1.54		%	1.35		%	1.30		%	1.38		%	1.25		%	1.54		%	1.25		%

(3) Shareholder Equity Ratio
Shareholders' equity to (actual) assets (GAAP)		14.97		%	15.41		%	14.64		%	14.33		%	14.27		%	14.97		%	14.27		%
	Effect of adjustment for intangible assets	5.61		%	5.85		%	5.62		%	5.02		%	5.11		%	5.61		%	5.11		%
Tangible capital ratio (non-GAAP)		9.36		%	9.56		%	9.03		%	9.31		%	9.16		%	9.36		%	9.16		%





RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
					CALCULATION OF EFFICIENCY RATIO

																	Three Months Ended
		2018			2017												December 31,
		First			Fourth			Third			Second			First
		Quarter			Quarter			Quarter			Quarter			Quarter			2018			2017
Interest income (FTE)		$	101,947		$	107,773		$	102,613		$	89,429		$	83,781		$	101,947		$	83,781
	Interest expense	11,140			11,325			10,678			7,976			7,874			11,140			7,874
Net Interest income (FTE)		$	90,807		$	96,448		$	91,935		$	81,453		$	75,907		$	90,807		$	75,907

Total noninterest income		$	33,953		$	32,441		$	33,413		$	34,265		$	32,021		$	33,953		$	32,021
	Securities gains (losses)	—			91			57			—			—			—			—
Total noninterest income		$	33,953		$	32,350		$	33,356		$	34,265		$	32,021		$	33,953		$	32,021
Total Income (FTE)		$	124,760		$	128,798		$	125,291		$	115,718		$	107,928		$	124,760		$	107,928

Total noninterest expense		$	77,944		$	76,808		$	80,660		$	74,841		$	69,309		$	77,944		$	69,309
	Amortization of intangibles	1,651			1,708			1,766			1,493			1,563			1,651			1,563
	Merger-related expenses	900			723			6,266			3,044			345			900			345
	Debt extinguishment penalty	—			—			—			—			205			—			205
Total noninterest expense		$	75,393		$	74,377		$	72,628		$	70,304		$	67,196		$	75,393		$	67,196

(4) Efficiency Ratio		60.43		%	57.75		%	57.97		%	60.75		%	62.26		%	60.43		%	62.26		%

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