Renasant 8K Results of Operations and Financial Condition | RNST 22 Apr 14



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

2014 FIRST QUARTER EARNINGS

TUPELO, MISSISSIPPI (April 22, 2014) - Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced its financial results for the first quarter of 2014. Net income for the first quarter of 2014 was $13,597,000, or basic and diluted earnings per share (“EPS”) of $0.43, as compared to $7,571,000, or basic and diluted EPS of $0.30, for the first quarter of 2013. The Company’s balance sheet and results of operations as of and for the three months ending March 31, 2014 include the impact of the Company’s acquisition of First M&F Corporation (“First M&F”), which was completed on September 1, 2013. Periods presented prior to September 1, 2013, do not reflect any impact from the First M&F acquisition.

For the first quarter of 2014, the Company’s return on average assets and return on average equity were 0.93% and 8.19%, respectively, as compared to 0.73% and 6.12%, respectively, for the first quarter of 2013. The Company’s 2014 first quarter return on average tangible assets and return on

average tangible equity were 1.05% and 16.05%, respectively, as compared to 0.79% and 10.19%, respectively, for the first quarter of 2013.

“Our first quarter results represent a strong beginning to 2014 as net income and EPS increased 80% and 43%, respectively, as compared to the same quarter last year,” said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. “With the operations of First M&F fully integrated, we believe we have made a strong start toward achieving our key performance goals and increasing profitability throughout 2014.”

Total assets as of March 31, 2014, were approximately $5.90 billion, as compared to $4.27 billion as of March 31, 2013, and $5.7 billion on a linked quarter basis. The increase in assets at March 31, 2014, as compared to the same period in 2013 is due primarily to the First M&F acquisition. The increase in assets on a linked quarter basis is due to a seasonal influx of deposits, primarily in public fund deposits. Due to the short-term nature of these deposit influxes, the funds from these deposits remained in liquid assets (low-yielding interest bearing cash or short-term investments). The excess cash and short term investments negatively impacted net interest margin by 15 basis points, leverage ratio by 16 basis points, tangible capital ratio by 12 basis points and return on average assets by 3 basis points.

Total deposits, including deposits acquired in the First M&F acquisition, were $5.0 billion at March 31, 2014, as compared to $3.56 billion at March 31, 2013, and $4.84 billion at December 31, 2013. The Company’s noninterest-bearing deposits averaged approximately $949 million, or 18.9% of average deposits, for the first quarter of 2014, as compared to $550 million, or 15.7% of average deposits, for the first quarter of 2013. The Company’s cost of funds was 48 basis points for the first quarter of 2014, as compared to 62 basis points for the same quarter in 2013.

Total loans, including loans acquired in either the First M&F merger or in FDIC-assisted transactions (collectively referred to as “acquired loans”), were approximately $3.87 billion at March 31, 2014, as compared to $2.81 billion at March 31, 2013. Excluding acquired loans, loans grew 13.6% to $2.95 billion at March 31, 2014, as compared to $2.59 billion at

March 31, 2013.

At March 31, 2014, the Company’s Tier 1 leverage capital ratio was 8.56%, its Tier 1 risk-based capital ratio was 11.55% and its total risk-based capital ratio was 12.72%. 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 6.68% as of March 31, 2014.

Net interest income was $50.0 million for the first quarter of 2014, as compared to $33.4 million for the first quarter of 2013, and $50.7 million for the fourth quarter of 2013. Net interest margin was 4.04% for the first quarter of 2014, as compared to 3.89% for the first quarter of 2013, and 4.16% for the fourth quarter of 2013. The primary factor causing the Company’s linked quarter decline in net interest margin was the negative impact of the seasonal influx of public fund deposits and the resulting short-term liquidity described above.

Noninterest income was $18.6 million for the first quarter of 2014, as compared to $17.4 million for the first quarter of 2013, and $18.3 million for the fourth quarter of 2013. The Company’s increase in noninterest income year-over-year is primarily attributable to the First M&F merger, notably a 31.44% increase in service charges and a 116.38% increase in insurance commissions and fees.

Noninterest expense was $47.6 million for the first quarter of 2014, as compared to $37.6 million for the first quarter of 2013, and $51.1 million for the fourth quarter of 2013. The Company recorded merger expenses associated with the First M&F acquisition of $195,000 and $1.9 million during the first quarter of 2014 and fourth quarter of 2013, respectively. The Company did not record any merger expenses during the first quarter of 2013. The Company’s increase in noninterest expense as compared to the same period in 2013 was primarily due to the expenses of the acquired First M&F operations.

At March 31, 2014, total nonperforming loans (loans 90 days or more past due and nonaccrual loans) were $74.1 million and total other real estate owned (“OREO”) was $47.7 million. The Company’s nonperforming loans and OREO that were acquired either through the First M&F merger or in connection with FDIC-assisted transactions (collectively referred to as “acquired nonperforming assets”) were $54.4 million and $22.6 million, respectively at March 31, 2014.

Since the acquired nonperforming assets were recorded at fair value at the time of acquisition or subject to loss-share agreements with the FDIC, which significantly mitigates our actual loss, the remaining information in this release on nonperforming loans, OREO and the related asset quality ratios excludes these acquired nonperforming assets.

The Company’s nonperforming loans were $19.7 million as of March 31, 2014, as compared to $28.0 million as of March 31, 2013. Nonperforming loans as a percentage of total loans were 0.67% as of March 31, 2014, as compared to 1.08% as of March 31, 2013.

Annualized net charge-offs as a percentage of average loans were 0.11% for the first quarter of 2014, as compared to 0.13% for the first quarter of 2013. The Company recorded a provision for

loan losses of $1.5 million for the first quarter of 2014, as compared to $3.1 million for the first quarter of 2013.

The allowance for loan losses totaled $48.0 million at March 31, 2014, as compared to $46.5 million as of March 31, 2013, and $47.7 million as of December 31, 2013. The allowance for loan losses as a percentage of loans was 1.63% as of March 31, 2014, as compared to 1.79% as of March 31, 2013.

The Company’s coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 244.06% as of March 31, 2014, as compared to 166.19% as of March 31, 2013. Loans 30 to 89 days past due as a percentage of total loans declined to 0.25% at March 31, 2014, as compared to 0.32% at March 31, 2013.

OREO was $25.1 million as of March 31, 2014, as compared to $39.8 million as of March 31, 2013. In addition, during the first quarter of 2014, the Company experienced a significant reduction in costs associated with OREO as OREO expense decreased approximately 16.98% as compared to the first quarter of 2013.

“Our key performance drivers, specifically loan pipelines, low-costing deposits, credit metrics and operational efficiencies, continue to show positive trends and healthy outlooks,” stated McGraw. “In addition, now that the acquired First M&F operations are fully integrated, we believe we are beginning to experience the full synergies of our combined companies, and we remain well positioned to take advantage of strategic growth opportunities when available.”

CONFERENCE CALL INFORMATION:

A live audio webcast of a conference call with analysts will be available beginning at 10:00 a.m. Eastern Time on Wednesday, April 23, 2014.

The webcast can be accessed through Renasant’s investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst140423.html. To access the conference via telephone, dial 1-888-317-6016 in the United States and request the Renasant Corporation First Quarter 2013 Earnings Webcast and Conference Call. International participants should dial 1-412-317-6016 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 10044091 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until 9:00 a.m. Eastern Time on May 8, 2014.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 110-year-old financial services institution, and Renasant Insurance. Renasant has assets of approximately $5.9 billion and operates more than 120 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama and Georgia.

NOTE TO INVESTORS:

This news release may contain, or incorporate by reference, statements which may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking statements usually include words such as “expects,” “projects,” “anticipates,” “believes,” “intends,” “estimates,” “strategy,” “plan,” “potential,” “possible” and other similar expressions.

Prospective investors are cautioned that any such forward-looking statements are not guarantees for future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that

could cause actual results to differ materially from those in forward-looking statements include significant fluctuations in interest rates, inflation, economic recession, significant changes in the federal and state legal and regulatory environment, significant underperformance in our portfolio of outstanding loans, and competition in our markets. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

NON-GAAP FINANCIAL MEASURES:

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets, which the Company’s management uses when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indications of its operating performance particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible can vary extensively from company to company and are excluded from the calculation of a financial institution’s regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company’s results to information provided in other regulatory reports and the results of other companies.

The specific non-GAAP financial measures used are return on average tangible shareholders’ equity, return on average tangible assets and the ratio of tangible equity to tangible assets (commonly referred to as the “tangible capital ratio”). The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company’s calculations may not be comparable to other similarly titled measures presented by other companies. Also there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the table at the end of this release under the caption “Reconciliation of GAAP to Non-GAAP.”

###



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																		Q1 2014 -		For the Three Months Ending
		2014				2013												Q1 2013		March 31,
			First			Fourth			Third			Second			First			Percent								Percent
			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2014			2013			Variance
Statement of earnings
Interest income - taxable equivalent basis			$	57,810		$	58,644		$	46,083		$	41,331		$	40,371		43.20		$	57,810		$	40,371		43.20
Interest income			$	56,177		$	57,076		$	44,638		$	39,945		$	38,945		44.25		$	56,177		$	38,945		44.25
Interest expense			6,206			6,408			5,890			5,541			5,564			11.54		6,206			5,564			11.54
	Net interest income		49,971			50,668			38,748			34,404			33,381			49.70		49,971			33,381			49.70
Provision for loan losses			1,450			2,000			2,300			3,000			3,050			(52.46	)	1,450			3,050			(52.46	)
	Net interest income after provision		48,521			48,668			36,448			31,404			30,331			59.97		48,521			30,331			59.97
Service charges on deposit accounts			5,915			6,165			5,361			4,509			4,500			31.44		5,915			4,500			31.44
Fees and commissions on loans and deposits			4,972			5,300			4,982			4,848			4,831			2.92		4,972			4,831			2.92
Insurance commissions and fees			1,863			1,869			1,295			951			861			116.38		1,863			861			116.38
Wealth management revenue			2,144			2,124			2,091			1,715			1,724			24.36		2,144			1,724			24.36
Securities gains (losses)			—			—			—			—			54			(100.00	)	—			54			(100.00	)
Gain on sale of mortgage loans			1,586			1,350			2,788			3,870			3,565			(55.51	)	1,586			3,565			(55.51	)
Gain on acquisition			—			—			—			—			—			—		—			—			—
Other			2,136			1,533			2,418			1,424			1,843			15.90		2,136			1,843			15.90
	Total noninterest income		18,616			18,341			18,935			17,317			17,378			7.12		18,616			17,378			7.12
Salaries and employee benefits			28,428			29,911			25,689			21,906			21,274			33.63		28,428			21,274			33.63
Data processing			2,695			2,546			2,236			2,045			2,043			31.91		2,695			2,043			31.91
Occupancy and equipment			4,847			5,105			4,576			3,668			3,608			34.34		4,847			3,608			34.34
Other real estate			1,701			1,607			1,537			1,773			2,049			(16.98	)	1,701			2,049			(16.98	)
Amortization of intangibles			1,471			1,508			724			314			323			355.42		1,471			323			355.42
Merger-related expenses			195			1,879			3,763			385			—			—		195			—			—
Debt extinguishment penalty			—			—			—			—			—			—		—			—			—
Other			8,308			8,573			8,088			7,643			8,303			0.06		8,308			8,303			0.06
	Total noninterest expense		47,645			51,129			46,613			37,734			37,600			26.72		47,645			37,600			26.72
Income before income taxes			19,492			15,880			8,770			10,987			10,109			92.82		19,492			10,109			92.82
Income taxes			5,895			4,620			2,133			2,968			2,538			132.27		5,895			2,538			132.27
	Net income		$	13,597		$	11,260		$	6,637		$	8,019		$	7,571		79.59		$	13,597		$	7,571		79.59
Basic earnings per share			$	0.43		$	0.36		$	0.24		$	0.32		$	0.30		43.33		$	0.43		$	0.30		43.33
Diluted earnings per share			0.43			0.36			0.24			0.32			0.30			43.33		0.43			0.30			43.33
Average basic shares outstanding			31,436,148			31,366,019			27,234,927			25,223,749			25,186,229			24.81		31,436,148			25,186,229			24.81
Average diluted shares outstanding			31,724,474			31,617,681			27,447,382			25,373,868			25,288,785			25.45		31,724,474			25,288,785			25.45
Common shares outstanding			31,480,395			31,387,668			31,358,583			25,231,074			25,208,733			24.88		31,480,395			25,208,733			24.88
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			8.19		%	6.71		%	4.75		%	6.35		%	6.12		%			8.19		%	6.12		%
Return on average tangible shareholders' equity			16.05		%	13.55		%	8.74		%	10.47		%	10.19		%			16.05		%	10.04		%
Return on average assets			0.93		%	0.78		%	0.56		%	0.76		%	0.73		%			0.93		%	0.73		%
Return on average tangible assets			1.05		%	0.90		%	0.63		%	0.82		%	0.79		%			1.05		%	0.79		%
Net interest margin (FTE)			4.04		%	4.16		%	3.86		%	3.88		%	3.89		%			4.04		%	3.89		%
Yield on earning assets (FTE)			4.53		%	4.67		%	4.42		%	4.49		%	4.51		%			4.53		%	4.51		%
Cost of funding			0.48		%	0.51		%	0.57		%	0.60		%	0.62		%			0.48		%	0.62		%
Average earning assets to average assets			87.35		%	86.78		%	87.43		%	87.32		%	86.31		%			87.35		%	86.27		%
Average loans to average deposits			77.00		%	79.89		%	81.69		%	80.93		%	80.30		%			77.00		%	80.30		%
Noninterest income (less securities gains/
	losses) to average assets		1.27		%	1.27		%	1.59		%	1.64		%	1.67		%			1.27		%	1.67		%
Noninterest expense (less debt prepayment penalties/
	merger-related expenses) to average assets		3.25		%	3.40		%	3.59		%	3.54		%	3.63		%			3.25		%	3.62		%
Net overhead ratio			1.97		%	2.14		%	2.01		%	1.90		%	1.95		%			1.97		%	1.95		%
Efficiency ratio (FTE)**			65.48		%	67.65		%	71.25		%	69.74		%	71.51		%			65.48		%	71.42		%
**Excludes debt extinguishment penalties and merger-related expenses from noninterest expense and profit (loss) on sales of securities and gains on acquisitions from noninterest income



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																		Q1 2014 -		For the Three Months Ending
		2014				2013												Q1 2013		March 31,
			First			Fourth			Third			Second			First			Percent								Percent
			Quarter			Quarter			Quarter			Quarter			Quarter			Variance		2014			2013			Variance
Average Balances
Total assets			$	5,927,884		$	5,741,794		$	4,729,079		$	4,231,947		$	4,206,411		40.92		$	5,927,884		$	4,206,411		40.92
Earning assets			5,178,069			4,982,614			4,134,730			3,695,409			3,630,759			42.62		5,178,069			3,630,759			42.62
Securities			1,002,519			924,179			819,351			754,515			698,863			43.45		1,002,519			698,863			43.45
Mortgage loans held for sale			19,925			25,248			37,056			32,318			22,347			(10.84	)	19,925			22,347			(10.84	)
Loans, net of unearned			3,868,747			3,865,615			3,213,853			2,845,260			2,804,618			37.94		3,868,747			2,804,618			37.94
Intangibles			303,599			304,388			227,606			190,362			190,787			59.13		303,599			190,787			59.13
Noninterest-bearing deposits			$	949,317		$	888,888		$	660,415		$	562,104		$	549,514		72.76		$	949,317		$	549,514		72.76
Interest-bearing deposits			4,074,746			3,949,909			3,273,658			2,953,435			2,943,247			38.44		4,074,746			2,943,247			38.44
Total deposits			5,024,063			4,838,797			3,934,073			3,515,539			3,492,761			43.84		5,024,063			3,492,761			43.84
Borrowed funds			170,091			173,583			189,909			164,894			163,981			3.73		170,091			163,981			3.73
Shareholders' equity			673,047			665,513			553,772			506,225			501,634			34.17		673,047			501,634			34.17
Balances at period end
Total assets			$	5,902,831		$	5,746,270		$	5,735,865		$	4,242,401		$	4,267,658		38.32		$	5,902,831		$	4,267,658		38.32
Earning assets			5,168,996			4,999,434			4,972,051			3,715,321			3,706,707			39.45		5,168,996			3,706,707			39.45
Securities			1,054,511			925,670			915,869			746,530			740,613			42.38		1,054,511			740,613			42.38
Mortgage loans held for sale			28,433			33,440			28,466			50,268			26,286			8.17		28,433			26,286			8.17
Loans acquired from M&F			746,047			813,451			891,420			—			—			—		746,047			—
Loans not acquired			2,947,836			2,885,802			2,794,116			2,683,017			2,594,438			13.62		2,947,836			2,594,438			13.62
Loans acquired and subject to loss share			173,545			181,765			195,996			201,494			213,872			(18.86	)	173,545			213,872			(18.86	)
	Total loans		3,867,428			3,881,018			3,881,532			2,884,511			2,808,310			37.71		3,867,428			2,808,310			37.71
Intangibles			302,903			304,330			305,065			190,208			190,522			58.99		302,903			190,522			58.99
Noninterest-bearing deposits			$	914,964		$	856,020		$	876,138		$	560,965		$	567,065		61.35		$	914,964		$	567,065		61.35
Interest-bearing deposits			4,089,820			3,985,892			3,958,618			2,944,193			2,988,110			36.87		4,089,820			2,988,110			36.87
	Total deposits		5,004,784			4,841,912			4,834,756			3,505,158			3,555,175			40.77		5,004,784			3,555,175			40.77
Borrowed funds			168,700			171,875			177,168			195,789			164,063			2.83		168,700			164,063			2.83
Shareholders' equity			676,715			665,652			657,256			500,678			502,375			34.70		676,715			502,375			34.70
Market value per common share			$	29.05		$	31.46		$	27.17		$	24.34		$	22.38		29.80		$	29.05		$	22.38		29.80
Book value per common share			21.50			21.21			20.96			19.84			19.93			7.88		21.50			19.93			7.88
Tangible book value per common share			11.87			11.51			11.23			12.31			12.37			(4.04	)	11.87			12.37			(4.04	)
Shareholders' equity to assets (actual)			11.46		%	11.58		%	11.46		%	11.80		%	11.77		%	(2.63	)	11.46		%	11.77		%	(2.63	)
Tangible capital ratio			6.68		%	6.64		%	6.49		%	7.66		%	7.65		%	(12.68	)	6.68		%	7.65		%	(12.68	)
Leverage ratio			8.56		%	8.68		%	8.61		%	9.83		%	9.79		%	(12.56	)	8.56		%	9.79		%	(12.56	)
Tier 1 risk-based capital ratio			11.55		%	11.52		%	11.34		%	12.87		%	12.86		%	(10.19	)	11.55		%	12.86		%	(10.19	)
Total risk-based capital ratio			12.72		%	12.69		%	12.47		%	14.14		%	14.13		%	(9.98	)	12.72		%	14.13		%	(9.98	)



RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																		Q1 2014 -		For the Three Months Ending
	2014				2013													Q1 2013		March 31,
		First			Fourth			Third			Second				First			Percent								Percent
		Quarter			Quarter			Quarter			Quarter				Quarter			Variance		2014			2013			Variance
Loans not acquired
Commercial, financial, agricultural		$	347,828		$	341,600		$	331,142		$	307,718			$	298,013		16.72		$	347,828		$	298,013		16.72
Lease Financing		612			52			75			103				162			277.78		612			162			277.78
Real estate- construction		149,450			147,075			127,013			117,339				109,484			36.50		149,450			109,484			36.50
Real estate - 1-4 family mortgages		941,260			928,803			891,422			859,884				834,204			12.83		941,260			834,204			12.83
Real estate - commercial mortgages		1,441,403			1,404,617			1,383,680			1,335,402				1,295,213			11.29		1,441,403			1,295,213			11.29
Installment loans to individuals		67,283			63,655			60,784			62,571				57,362			17.30		67,283			57,362			17.30
Loans, net of unearned		$	2,947,836		$	2,885,802		$	2,794,116		$	2,683,017			$	2,594,438		13.62		$	2,947,836		$	2,594,438		13.62
Loans acquired and subject to loss share
Commercial, financial, agricultural		$	8,283		$	9,546		$	10,280		$	10,283			$	10,157		(18.45	)	$	8,283		$	10,157		(18.45	)
Lease Financing		—			—			—			—				—			—		—			—			—
Real estate- construction		1,648			1,648			1,648			1,648				1,648			—		1,648			1,648			—
Real estate - 1-4 family mortgages		52,252			54,466			56,722			60,409				65,489			(20.21	)	52,252			65,489			(20.21	)
Real estate - commercial mortgages		111,337			116,077			127,315			129,120				136,541			(18.46	)	111,337			136,541			(18.46	)
Installment loans to individuals		25			28			31			34				37			(32.43	)	25			37			(32.43	)
Loans, net of unearned		$	173,545		$	181,765		$	195,996		$	201,494			$	213,872		(18.86	)	$	173,545		$	213,872		(18.86	)
Loans acquired from M&F
Commercial, financial, agricultural		$	84,004		$	117,817		$	139,821		$	—			$	—		—		$	84,004		$	—		—
Lease Financing		—			—			—			—				—			—		—			—			—
Real estate- construction		4,803			12,713			23,556			—				—			—		4,803			—			—
Real estate - 1-4 family mortgages		217,748			224,965			244,079			—				—			—		217,748			—			—
Real estate - commercial mortgages		415,418			429,878			449,589			—				—			—		415,418			—			—
Installment loans to individuals		24,074			28,078			34,375			—				—			—		24,074			—			—
Loans, net of unearned		$	746,047		$	813,451		$	891,420		$	—			$	—		—		$	746,047		$	—		—
Asset quality data
Assets not acquired:
Nonaccrual loans		$	18,365		$	16,863		$	19,995		$	20,554			$	25,382		(27.65	)	$	18,365		$	25,382		(27.65	)
Loans 90 past due or more		1,322			2,287			2,078			1,983				2,601			(49.17	)	1,322			2,601			(49.17	)
Nonperforming loans		19,687			19,150			22,073			22,537				27,983			(29.65	)	19,687			27,983			(29.65	)
Other real estate owned		25,117			27,543			27,357			33,247				39,786			(36.87	)	25,117			39,786			(36.87	)
Nonperforming assets not acquired		$	44,804		$	46,693		$	49,430		$	55,784			$	67,769		(33.89	)	$	44,804		$	67,769		(33.89	)
Assets acquired and subject to loss share:
Nonaccrual loans		$	46,078		$	49,194		$	49,585		$	47,281		#	$	47,972		(3.95	)	$	46,078		$	47,972		(3.95	)
Loans 90 past due or more		32			—			505			126			#	—			—		32			—			—
Nonperforming loans		46,110			49,194			50,090			47,407			#	47,972			(3.88	)	46,110			47,972			(3.88	)
Other real estate owned		10,218			12,942			16,580			27,835			#	35,095			(70.88	)	10,218			35,095			(70.88	)
Nonperforming assets acquired and subject to loss share		$	56,328		$	62,136		$	66,670		$	75,242		#	$	83,067		(32.19	)	$	56,328		$	83,067		(32.19	)
Assets acquired from M&F:
Nonaccrual loans		$	6,393		$	6,275		$	224		$	—		#	$	—		—		$	6,393		$	—		—
Loans 90 past due or more		1,922			1,899			8,568			—			#	—			—		1,922			—			—
Nonperforming loans		8,315			8,174			8,792			—			#	—			—		8,315			—			—
Other real estate owned		12,406			12,402			13,223			—			#	—			—		12,406			—			—
Nonperforming assets acquired from M&F		$	20,721		$	20,576		$	22,015		$	—		#	$	—		—		$	20,721		$	—		—
Net loan charge-offs (recoveries)		$	1,067		$	584		$	3,084		$	2,471			$	893		19.48		$	1,067		$	893		19.48
Allowance for loan losses		48,048			47,666			46,250			47,034				46,505			3.32		48,048			46,505			3.32
Annualized net loan charge-offs / average loans		0.11		%	0.06		%	0.38		%	0.35		%		0.13		%			0.11		%	0.13		%
Nonperforming loans / total loans*		0.76		%	0.74		%	0.84		%	0.84		%		1.08		%			0.76		%	1.08		%
Nonperforming assets / total assets*		1.11		%	1.17		%	1.25		%	1.31		%		1.59		%			1.11		%	1.59		%
Allowance for loan losses / total loans*		1.30		%	1.29		%	1.25		%	1.75		%		1.79		%			1.30		%	1.79		%
Allowance for loan losses / nonperforming loans*		171.59		%	174.45		%	149.85		%	208.70		%		166.19		%			171.59		%	166.19		%
Nonperforming loans / total loans**		0.67		%	0.66		%	0.79		%	0.84		%		1.08		%			0.67		%	1.08		%
Nonperforming assets / total assets**		0.76		%	0.81		%	0.86		%	1.31		%		1.59		%			0.76		%	1.59		%
Allowance for loan losses / total loans**		1.63		%	1.65		%	1.66		%	1.75		%		1.79		%			1.63		%	1.79		%
Allowance for loan losses / nonperforming loans**		244.06		%	248.91		%	209.53		%	208.70		%		166.19		%			244.06		%	166.19		%
*Based on assets not subject to loss share (includes assets acquired from M&F)
**Excludes assets acquired from M&F and assets covered under loss share



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

						RECONCILIATION OF GAAP TO NON-GAAP

																		For the Three Months Ending
		2014				2013												March 31,
			First			Fourth			Third			Second			First
			Quarter			Quarter			Quarter			Quarter			Quarter			2014			2013
Net income (GAAP)			$	13,597		$	11,260		$	6,637		$	8,019		$	7,571		$	13,597		$	7,571
	Amortization of intangibles, net of tax		1,026			1,069			548			229			242			1,026			242
Tangible net income (non-GAAP)			$	14,623		$	12,329		$	7,185		$	8,248		$	7,813		$	14,623		$	7,813

Average shareholders' equity (GAAP)			$	673,047		$	665,513		$	553,772		$	506,225		$	501,634		$	673,047		$	501,634
	Intangibles		303,599			304,388			227,606			190,362			190,787			303,599			190,787
Average tangible s/h's equity (non-GAAP)			$	369,448		$	361,125		$	326,166		$	315,863		$	310,847		$	369,448		$	310,847

Average total assets (GAAP)			$	5,927,920		$	5,741,794		$	4,729,079		$	4,231,947		$	4,206,411		$	5,927,920		$	4,206,411
	Intangibles		303,599			304,388			227,606			190,362			190,787			303,599			190,787
Average tangible assets (non-GAAP)			$	5,624,321		$	5,437,406		$	4,501,473		$	4,041,585		$	4,015,624		$	5,624,321		$	4,015,624

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

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

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

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

Renasant (RNST) 8-KResults of Operations and Financial Condition