Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced
earnings results for the fourth quarter of 2022.
(Dollars in thousands, except
earnings per share) |
Three Months Ended |
|
Twelve Months Ended |
|
Dec 31, 2022 |
Sep 30, 2022 |
Dec 31, 2021 |
|
Dec 31, 2022 |
Dec 31, 2021 |
Net income and
earnings per share: |
|
|
|
|
|
|
Net income |
$46,276 |
$46,567 |
$37,054 |
|
$166,068 |
$175,892 |
Basic EPS |
0.83 |
0.83 |
0.66 |
|
2.97 |
3.13 |
Diluted EPS |
0.82 |
0.83 |
0.66 |
|
2.95 |
3.12 |
Adjusted diluted EPS (Non-GAAP)(1) |
0.89 |
0.79 |
0.68 |
|
3.00 |
2.98 |
“We are pleased to report a solid fourth quarter
with quarterly earnings growing over the prior year,” remarked C.
Mitchell Waycaster, Renasant President and Chief Executive Officer.
“The company continues to emphasize the importance of core
deposits, asset quality and capital strength in managing our
balance sheet. We recently completed the acquisition of Republic
Business Credit and are excited to welcome that team to
Renasant.”
Quarterly Highlights
Acquisition
- The Company completed the
acquisition of Republic Business Credit, a factoring and
asset-based lending company headquartered in New Orleans, Louisiana
(“RBC”), on December 30, 2022. The RBC acquisition added $77.5
million in loans on the date of acquisition, and the Company
recorded a provision for credit losses of $2.6 million, a provision
for unfunded commitments of $0.2 million and merger expenses of
$1.1 million
Earnings
- Net income for the fourth quarter
of 2022 was $46.3 million with diluted EPS of $0.82 and
adjusted diluted EPS (non-GAAP)(1) of $0.89
- Net interest income (fully tax
equivalent) for the fourth quarter of 2022 was $140.6 million, up
$8.1 million on a linked quarter basis
- For the fourth quarter of 2022, net
interest margin was 3.78%, up 24 basis points on a linked quarter
basis
- Cost of total deposits was 52 basis
points for the fourth quarter of 2022, up 31 basis points on a
linked quarter basis
- The Company’s wealth management and insurance lines of business
produced steady results during the fourth quarter of 2022
- The mortgage division generated
$0.5 billion in interest rate lock volume during the fourth quarter
of 2022, compared to $0.6 billion in the third quarter of 2022.
Gain on sale margin was 1.64% for the fourth quarter of 2022, up 61
basis points on a linked quarter basis. The Company recognized a
gain on the sale of mortgage servicing rights of $3.0 million in
the third quarter. No such sales occurred in the fourth
quarter
- Fourth quarter noninterest expense
remained relatively unchanged on a linked quarter basis. In
addition to expenses incurred in connection with the RBC
acquisition, the Company recorded $1.3 million in expense related
to the voluntary reimbursement of certain re-presentment NSF fees
previously charged to customers that the Company expects to make in
2023 in light of the FDIC’s recent guidance to banks regarding such
fees. The efficiency ratio and adjusted efficiency ratio
(non-GAAP)(1) for the fourth quarter was 58.4% and 56.3%,
respectively
Balance Sheet
- Loans increased $473.3 million
during the fourth quarter of 2022 from September 30, 2022;
excluding RBC acquired loans, loans increased $395.8 million, which
represents 14.14% annualized net loan growth
- The securities portfolio decreased
$64.8 million during the fourth quarter of 2022 from
September 30, 2022, due to net cash outflows during the
quarter of $75.4 million and a positive fair market value
adjustment in our available-for-sale portfolio of $10.6
million
- Deposits at December 31, 2022
increased $54.8 million from September 30, 2022, driven by an
increase in interest bearing deposits. Noninterest bearing deposits
decreased $268.5 million from September 30, 2022 to
December 31, 2022 and represented 33.8% of total deposits at
December 31, 2022. Brokered deposits were $233.1 million at
December 31, 2022
Capital
- Book value per share and tangible
book value per share (non-GAAP)(1) increased 2.1% and decreased
0.5%, respectively, on a linked quarter basis
- The Company has a $100 million
stock repurchase program that is in effect through October 2023;
there was no buyback activity during the fourth quarter of
2022
Credit Quality
- The Company recorded a provision
for credit losses on loans of $10.5 million for the fourth quarter
of 2022, primarily driven by loan growth and the aforementioned
provision with respect to acquired RBC loans
- The allowance for credit losses on
loans to total loans increased nine basis points on a linked
quarter basis to 1.66% at December 31, 2022; an allowance of
$9.8 million was recorded for RBC loans that had experienced credit
deterioration prior to acquisition
- The coverage ratio, or the
allowance for credit losses on loans to nonperforming loans, was
337.73% at December 31, 2022, compared to 312.10% at
September 30, 2022
- Net loan charge-offs for the fourth
quarter of 2022 were $2.6 million, or 0.09% of average loans on an
annualized basis
- Credit metrics remained stable.
Nonperforming loans to total loans decreased to 0.49% at
December 31, 2022 compared to 0.50% at September 30, 2022
and criticized loans (which include classified and special mention
loans) to total loans increased to 2.47% at December 31, 2022,
compared to 2.37% at September 30, 2022
(1) This is a non-GAAP financial measure. A
reconciliation of all non-GAAP financial measures disclosed in this
release from GAAP to non-GAAP is included in the tables at the end
of this release. The information below under the heading “Non-GAAP
Financial Measures” explains why the Company believes the non-GAAP
financial measures in this release provide useful information and
describes the other purposes for which the Company uses non-GAAP
financial measures.
Income Statement
(Dollars in thousands, except
per share data) |
Three Months Ended |
|
Twelve Months Ended |
|
Dec 31,2022 |
Sep 30,2022 |
Jun 30,2022 |
Mar 31,2022 |
Dec 31,2021 |
|
Dec 31,2022 |
Dec 31,2021 |
Interest
income |
|
|
|
|
|
|
|
|
Loans held for investment |
$ |
145,360 |
$ |
123,100 |
$ |
106,409 |
$ |
95,829 |
$ |
98,478 |
|
|
$ |
470,698 |
$ |
422,832 |
|
Loans held for sale |
|
1,688 |
|
2,075 |
|
2,586 |
|
2,863 |
|
3,652 |
|
|
|
9,212 |
|
12,632 |
|
Securities |
|
15,241 |
|
14,500 |
|
12,471 |
|
10,835 |
|
9,221 |
|
|
|
53,047 |
|
31,532 |
|
Other |
|
2,777 |
|
3,458 |
|
1,954 |
|
664 |
|
568 |
|
|
|
8,853 |
|
1,689 |
|
Total interest
income |
|
165,066 |
|
143,133 |
|
123,420 |
|
110,191 |
|
111,919 |
|
|
|
541,810 |
|
468,685 |
|
Interest
expense |
|
|
|
|
|
|
|
|
Deposits |
|
17,312 |
|
7,241 |
|
5,018 |
|
5,637 |
|
6,056 |
|
|
|
35,208 |
|
28,976 |
|
Borrowings |
|
9,918 |
|
5,574 |
|
4,887 |
|
4,925 |
|
4,381 |
|
|
|
25,304 |
|
15,708 |
|
Total interest
expense |
|
27,230 |
|
12,815 |
|
9,905 |
|
10,562 |
|
10,437 |
|
|
|
60,512 |
|
44,684 |
|
Net interest
income |
|
137,836 |
|
130,318 |
|
113,515 |
|
99,629 |
|
101,482 |
|
|
|
481,298 |
|
424,001 |
|
Provision for
(recovery of) credit losses |
|
|
|
|
|
|
|
|
Provision for (recovery of) loan losses |
|
10,488 |
|
9,800 |
|
2,000 |
|
1,500 |
|
(500 |
) |
|
|
23,788 |
|
(1,700 |
) |
Provision for credit losses on HTM securities |
|
— |
|
— |
|
— |
|
— |
|
32 |
|
|
|
— |
|
32 |
|
Total provision for
(recovery of) loan losses |
|
10,488 |
|
9,800 |
|
2,000 |
|
1,500 |
|
(468 |
) |
|
|
23,788 |
|
(1,668 |
) |
Net interest income
after provision for (recovery of) credit losses |
|
127,348 |
|
120,518 |
|
111,515 |
|
98,129 |
|
101,950 |
|
|
|
457,510 |
|
425,669 |
|
Noninterest
income |
|
33,395 |
|
41,186 |
|
37,214 |
|
37,458 |
|
47,582 |
|
|
|
149,253 |
|
226,984 |
|
Noninterest
expense |
|
101,582 |
|
101,574 |
|
98,194 |
|
94,105 |
|
101,115 |
|
|
|
395,455 |
|
429,826 |
|
Income before income
taxes |
|
59,161 |
|
60,130 |
|
50,535 |
|
41,482 |
|
48,417 |
|
|
|
211,308 |
|
222,827 |
|
Income
taxes |
|
12,885 |
|
13,563 |
|
10,857 |
|
7,935 |
|
11,363 |
|
|
|
45,240 |
|
46,935 |
|
Net
income |
$ |
46,276 |
$ |
46,567 |
$ |
39,678 |
$ |
33,547 |
$ |
37,054 |
|
|
$ |
166,068 |
$ |
175,892 |
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(non-GAAP)(1) |
$ |
50,324 |
$ |
44,233 |
$ |
40,601 |
$ |
33,728 |
$ |
38,232 |
|
|
$ |
168,886 |
$ |
167,951 |
|
Adjusted pre-provision net
revenue (“PPNR”) (non-GAAP)(1) |
$ |
72,187 |
$ |
66,970 |
$ |
54,172 |
$ |
42,664 |
$ |
49,190 |
|
|
$ |
235,993 |
$ |
210,424 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.83 |
$ |
0.83 |
$ |
0.71 |
$ |
0.60 |
$ |
0.66 |
|
|
$ |
2.97 |
$ |
3.13 |
|
Diluted earnings per
share |
|
0.82 |
|
0.83 |
|
0.71 |
|
0.60 |
|
0.66 |
|
|
|
2.95 |
|
3.12 |
|
Adjusted diluted earnings per
share (non-GAAP)(1) |
|
0.89 |
|
0.79 |
|
0.72 |
|
0.60 |
|
0.68 |
|
|
|
3.00 |
|
2.98 |
|
Average basic shares
outstanding |
|
55,953,104 |
|
55,947,214 |
|
55,906,755 |
|
55,809,192 |
|
55,751,487 |
|
|
|
55,904,579 |
|
56,114,666 |
|
Average diluted shares
outstanding |
|
56,335,446 |
|
56,248,720 |
|
56,182,845 |
|
56,081,863 |
|
56,105,050 |
|
|
|
56,214,230 |
|
56,424,484 |
|
Cash dividends per common
share |
$ |
0.22 |
$ |
0.22 |
$ |
0.22 |
$ |
0.22 |
$ |
0.22 |
|
|
$ |
0.88 |
$ |
0.88 |
|
(1) This is a non-GAAP financial measure. A
reconciliation of all non-GAAP financial measures disclosed in this
release from GAAP to non-GAAP is included in the tables at the end
of this release. The information below under the heading “Non-GAAP
Financial Measures” explains why the Company believes the non-GAAP
financial measures in this release provide useful information and
describes the other purposes for which the Company uses non-GAAP
financial measures.
Performance Ratios
|
Three Months Ended |
|
Twelve Months Ended |
|
Dec 31,2022 |
Sep 30,2022 |
Jun 30,2022 |
Mar 31,2022 |
Dec 31,2021 |
|
Dec 31,2022 |
Dec 31,2021 |
Return on average assets |
1.11 |
% |
1.11 |
% |
0.96 |
% |
0.81 |
% |
0.89 |
% |
|
1.00 |
% |
1.11 |
% |
Adjusted return on average
assets (non-GAAP)(1) |
1.20 |
|
1.05 |
|
0.98 |
|
0.82 |
|
0.92 |
|
|
1.02 |
|
1.06 |
|
Return on average tangible
assets (non-GAAP)(1) |
1.20 |
|
1.20 |
|
1.04 |
|
0.89 |
|
0.98 |
|
|
1.09 |
|
1.21 |
|
Adjusted return on average
tangible assets (non-GAAP)(1) |
1.30 |
|
1.14 |
|
1.07 |
|
0.90 |
|
1.01 |
|
|
1.10 |
|
1.16 |
|
Return on average equity |
8.58 |
|
8.50 |
|
7.31 |
|
6.05 |
|
6.59 |
|
|
7.60 |
|
7.96 |
|
Adjusted return on average
equity (non-GAAP)(1) |
9.33 |
|
8.07 |
|
7.48 |
|
6.08 |
|
6.80 |
|
|
7.73 |
|
7.60 |
|
Return on average tangible
equity (non-GAAP)(1) |
15.98 |
|
15.64 |
|
13.50 |
|
10.93 |
|
11.94 |
|
|
13.97 |
|
14.53 |
|
Adjusted return on average
tangible equity (non-GAAP)(1) |
17.35 |
|
14.87 |
|
13.81 |
|
10.99 |
|
12.31 |
|
|
14.20 |
|
13.89 |
|
Efficiency ratio (fully
taxable equivalent) |
58.39 |
|
58.50 |
|
64.37 |
|
67.78 |
|
67.04 |
|
|
61.89 |
|
65.35 |
|
Adjusted efficiency ratio
(non-GAAP)(1) |
56.25 |
|
58.78 |
|
62.44 |
|
67.02 |
|
64.18 |
|
|
60.77 |
|
65.32 |
|
Dividend payout ratio |
26.51 |
|
26.51 |
|
30.99 |
|
36.67 |
|
33.33 |
|
|
29.63 |
|
28.12 |
|
Capital and Balance Sheet Ratios
|
As of |
|
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
Mar 31, 2022 |
Dec 31, 2021 |
Shares outstanding |
|
55,953,104 |
|
|
55,953,104 |
|
|
55,932,017 |
|
|
55,880,666 |
|
|
55,756,233 |
|
Market value per share |
$ |
37.59 |
|
$ |
31.28 |
|
$ |
28.81 |
|
$ |
33.45 |
|
$ |
37.95 |
|
Book value per share |
|
38.18 |
|
|
37.39 |
|
|
37.85 |
|
|
38.25 |
|
|
39.63 |
|
Tangible book value per share (non-GAAP)(1) |
|
20.02 |
|
|
20.12 |
|
|
20.55 |
|
|
20.91 |
|
|
22.35 |
|
Shareholders’ equity to assets |
|
12.57 |
% |
|
12.70 |
% |
|
12.74 |
% |
|
12.68 |
% |
|
13.15 |
% |
Tangible common equity ratio (non-GAAP)(1) |
|
7.01 |
|
|
7.26 |
|
|
7.34 |
|
|
7.35 |
|
|
7.86 |
|
Leverage ratio |
|
9.36 |
|
|
9.39 |
|
|
9.16 |
|
|
9.00 |
|
|
9.15 |
|
Common equity tier 1 capital ratio |
|
10.21 |
|
|
10.64 |
|
|
10.74 |
|
|
10.78 |
|
|
11.18 |
|
Tier 1 risk-based capital ratio |
|
11.01 |
|
|
11.47 |
|
|
11.60 |
|
|
11.67 |
|
|
12.10 |
|
Total risk-based capital ratio |
|
14.63 |
|
|
15.15 |
|
|
15.34 |
|
|
15.51 |
|
|
16.14 |
|
(1) This is a non-GAAP financial measure. A
reconciliation of all non-GAAP financial measures disclosed in this
release from GAAP to non-GAAP is included in the tables at the end
of this release. The information below under the heading “Non-GAAP
Financial Measures” explains why the Company believes the non-GAAP
financial measures in this release provide useful information and
describes the other purposes for which the Company uses non-GAAP
financial measures.
Noninterest Income and Noninterest Expense
(Dollars in thousands) |
Three Months Ended |
|
Twelve Months Ended |
|
Dec 31,2022 |
Sep 30,2022 |
Jun 30,2022 |
Mar 31,2022 |
Dec 31,2021 |
|
Dec 31,2022 |
Dec 31,2021 |
Noninterest
income |
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
$ |
10,445 |
|
$ |
10,216 |
$ |
9,734 |
|
$ |
9,562 |
|
$ |
9,751 |
|
|
$ |
39,957 |
|
$ |
36,569 |
Fees and commissions |
|
4,470 |
|
|
4,148 |
|
4,668 |
|
|
3,982 |
|
|
3,885 |
|
|
|
17,268 |
|
|
15,732 |
Insurance commissions |
|
2,501 |
|
|
3,108 |
|
2,591 |
|
|
2,554 |
|
|
2,353 |
|
|
|
10,754 |
|
|
9,841 |
Wealth management revenue |
|
5,237 |
|
|
5,467 |
|
5,711 |
|
|
5,924 |
|
|
5,273 |
|
|
|
22,339 |
|
|
20,455 |
Mortgage banking income |
|
5,170 |
|
|
12,675 |
|
8,316 |
|
|
9,633 |
|
|
14,726 |
|
|
|
35,794 |
|
|
109,604 |
Swap termination gains |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
4,676 |
|
|
|
— |
|
|
4,676 |
Net gains on sales of securities |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
49 |
|
|
|
— |
|
|
2,170 |
BOLI income |
|
2,487 |
|
|
2,296 |
|
2,331 |
|
|
2,153 |
|
|
2,048 |
|
|
|
9,267 |
|
|
7,366 |
Other |
|
3,085 |
|
|
3,276 |
|
3,863 |
|
|
3,650 |
|
|
4,821 |
|
|
|
13,874 |
|
|
20,571 |
Total noninterest
income |
$ |
33,395 |
|
$ |
41,186 |
$ |
37,214 |
|
$ |
37,458 |
|
$ |
47,582 |
|
|
$ |
149,253 |
|
$ |
226,984 |
Noninterest
expense |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
67,372 |
|
$ |
66,463 |
$ |
65,580 |
|
$ |
62,239 |
|
$ |
62,523 |
|
|
$ |
261,654 |
|
$ |
280,627 |
Data processing |
|
3,521 |
|
|
3,526 |
|
3,590 |
|
|
4,263 |
|
|
5,346 |
|
|
|
14,900 |
|
|
21,726 |
Net occupancy and equipment |
|
11,122 |
|
|
11,266 |
|
11,155 |
|
|
11,276 |
|
|
11,177 |
|
|
|
44,819 |
|
|
46,837 |
Other real estate owned |
|
(59 |
) |
|
34 |
|
(187 |
) |
|
(241 |
) |
|
(60 |
) |
|
|
(453 |
) |
|
253 |
Professional fees |
|
2,856 |
|
|
3,087 |
|
2,778 |
|
|
3,151 |
|
|
3,209 |
|
|
|
11,872 |
|
|
11,776 |
Advertising and public relations |
|
3,631 |
|
|
3,229 |
|
3,406 |
|
|
4,059 |
|
|
2,929 |
|
|
|
14,325 |
|
|
12,203 |
Intangible amortization |
|
1,195 |
|
|
1,251 |
|
1,310 |
|
|
1,366 |
|
|
1,424 |
|
|
|
5,122 |
|
|
6,042 |
Communications |
|
2,028 |
|
|
1,999 |
|
1,904 |
|
|
2,027 |
|
|
2,088 |
|
|
|
7,958 |
|
|
8,869 |
Merger and conversion related expenses |
|
1,100 |
|
|
— |
|
— |
|
|
687 |
|
|
— |
|
|
|
1,787 |
|
|
— |
Restructuring charges (benefit) |
|
— |
|
|
— |
|
1,187 |
|
|
(455 |
) |
|
61 |
|
|
|
732 |
|
|
368 |
Debt prepayment penalty |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
6,123 |
|
|
|
— |
|
|
6,123 |
Other |
|
8,816 |
|
|
10,719 |
|
7,471 |
|
|
5,733 |
|
|
6,295 |
|
|
|
32,739 |
|
|
35,002 |
Total noninterest
expense |
$ |
101,582 |
|
$ |
101,574 |
$ |
98,194 |
|
$ |
94,105 |
|
$ |
101,115 |
|
|
$ |
395,455 |
|
$ |
429,826 |
Mortgage Banking Income
(Dollars in thousands) |
Three Months Ended |
|
Twelve Months Ended |
|
Dec 31,2022 |
Sep 30,2022 |
Jun 30,2022 |
Mar 31,2022 |
Dec 31,2021 |
|
Dec 31,2022 |
Dec 31,2021 |
Gain on sales of loans, net |
$ |
1,003 |
$ |
5,263 |
$ |
3,490 |
$ |
6,047 |
$ |
10,801 |
|
|
$ |
15,803 |
$ |
82,399 |
|
Fees, net |
|
1,849 |
|
2,405 |
|
3,064 |
|
3,053 |
|
4,320 |
|
|
|
10,371 |
|
17,161 |
|
Mortgage servicing income (loss), net |
|
2,318 |
|
5,007 |
|
1,762 |
|
533 |
|
(395 |
) |
|
|
9,620 |
|
(3,517 |
) |
MSR valuation adjustment |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
|
— |
|
13,561 |
|
Total mortgage banking
income |
$ |
5,170 |
$ |
12,675 |
$ |
8,316 |
$ |
9,633 |
$ |
14,726 |
|
|
$ |
35,794 |
$ |
109,604 |
|
Balance Sheet
(Dollars in thousands) |
As of |
|
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
Mar 31, 2022 |
Dec 31, 2021 |
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
575,992 |
|
$ |
479,500 |
|
$ |
1,010,468 |
|
$ |
1,607,493 |
|
$ |
1,877,965 |
|
Securities held to maturity, at amortized cost |
|
1,324,040 |
|
|
1,353,502 |
|
|
488,851 |
|
|
487,194 |
|
|
416,357 |
|
Securities available for sale, at fair value |
|
1,533,942 |
|
|
1,569,242 |
|
|
2,528,253 |
|
|
2,405,316 |
|
|
2,386,052 |
|
Loans held for sale, at fair value |
|
110,105 |
|
|
144,642 |
|
|
196,598 |
|
|
280,464 |
|
|
453,533 |
|
Loans held for investment |
|
11,578,304 |
|
|
11,105,004 |
|
|
10,603,744 |
|
|
10,313,459 |
|
|
10,020,914 |
|
Allowance for credit losses on loans |
|
(192,090 |
) |
|
(174,356 |
) |
|
(166,131 |
) |
|
(166,468 |
) |
|
(164,171 |
) |
Loans, net |
|
11,386,214 |
|
|
10,930,648 |
|
|
10,437,613 |
|
|
10,146,991 |
|
|
9,856,743 |
|
Premises and equipment, net |
|
283,595 |
|
|
284,062 |
|
|
284,035 |
|
|
285,344 |
|
|
293,122 |
|
Other real estate owned |
|
1,763 |
|
|
2,412 |
|
|
2,807 |
|
|
2,062 |
|
|
2,540 |
|
Goodwill and other intangibles |
|
1,015,884 |
|
|
966,461 |
|
|
967,713 |
|
|
969,022 |
|
|
963,781 |
|
Bank-owned life insurance |
|
373,808 |
|
|
371,650 |
|
|
371,298 |
|
|
369,344 |
|
|
287,359 |
|
Mortgage servicing rights |
|
84,448 |
|
|
81,980 |
|
|
94,743 |
|
|
91,730 |
|
|
89,018 |
|
Other assets |
|
298,385 |
|
|
287,000 |
|
|
235,722 |
|
|
218,797 |
|
|
183,841 |
|
Total assets |
$ |
16,988,176 |
|
$ |
16,471,099 |
|
$ |
16,618,101 |
|
$ |
16,863,757 |
|
$ |
16,810,311 |
|
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing |
$ |
4,558,756 |
|
$ |
4,827,220 |
|
$ |
4,741,397 |
|
$ |
4,706,256 |
|
$ |
4,718,124 |
|
Interest-bearing |
|
8,928,210 |
|
|
8,604,904 |
|
|
9,022,532 |
|
|
9,284,641 |
|
|
9,187,600 |
|
Total deposits |
|
13,486,966 |
|
|
13,432,124 |
|
|
13,763,929 |
|
|
13,990,897 |
|
|
13,905,724 |
|
Short-term borrowings |
|
712,232 |
|
|
312,818 |
|
|
112,642 |
|
|
111,279 |
|
|
13,947 |
|
Long-term debt |
|
428,133 |
|
|
426,821 |
|
|
431,553 |
|
|
435,416 |
|
|
471,209 |
|
Other liabilities |
|
224,829 |
|
|
207,055 |
|
|
193,100 |
|
|
188,523 |
|
|
209,578 |
|
Total liabilities |
|
14,852,160 |
|
|
14,378,818 |
|
|
14,501,224 |
|
|
14,726,115 |
|
|
14,600,458 |
|
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
Preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Common stock |
|
296,483 |
|
|
296,483 |
|
|
296,483 |
|
|
296,483 |
|
|
296,483 |
|
Treasury stock |
|
(111,577 |
) |
|
(111,577 |
) |
|
(112,295 |
) |
|
(114,050 |
) |
|
(118,027 |
) |
Additional paid-in capital |
|
1,302,422 |
|
|
1,299,476 |
|
|
1,298,207 |
|
|
1,297,088 |
|
|
1,300,192 |
|
Retained earnings |
|
857,725 |
|
|
823,951 |
|
|
789,880 |
|
|
762,690 |
|
|
741,648 |
|
Accumulated other comprehensive loss |
|
(209,037 |
) |
|
(216,052 |
) |
|
(155,398 |
) |
|
(104,569 |
) |
|
(10,443 |
) |
Total shareholders’
equity |
|
2,136,016 |
|
|
2,092,281 |
|
|
2,116,877 |
|
|
2,137,642 |
|
|
2,209,853 |
|
Total liabilities and
shareholders’ equity |
$ |
16,988,176 |
|
$ |
16,471,099 |
|
$ |
16,618,101 |
|
$ |
16,863,757 |
|
$ |
16,810,311 |
|
Net Interest Income and Net Interest Margin
(Dollars in thousands) |
Three Months Ended |
|
December 31, 2022 |
September 30, 2022 |
December 31, 2021 |
|
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
Loans held for investment |
$ |
11,282,422 |
$ |
147,519 |
5.19 |
% |
$ |
10,829,137 |
$ |
124,614 |
4.57 |
% |
$ |
9,948,610 |
$ |
99,670 |
3.98 |
% |
Loans held for sale |
|
117,082 |
|
1,688 |
5.77 |
% |
|
143,837 |
|
2,075 |
5.77 |
% |
|
498,724 |
|
3,652 |
2.93 |
% |
Taxable securities |
|
2,657,248 |
|
13,174 |
1.98 |
% |
|
2,773,924 |
|
12,439 |
1.79 |
% |
|
2,245,249 |
|
7,293 |
1.30 |
% |
Tax-exempt securities(1) |
|
447,287 |
|
2,637 |
2.36 |
% |
|
449,927 |
|
2,664 |
2.37 |
% |
|
392,700 |
|
2,503 |
2.55 |
% |
Total securities |
|
3,104,535 |
|
15,811 |
2.04 |
% |
|
3,223,851 |
|
15,103 |
1.87 |
% |
|
2,637,949 |
|
9,796 |
1.49 |
% |
Interest-bearing balances with
banks |
|
269,975 |
|
2,777 |
4.08 |
% |
|
663,218 |
|
3,458 |
2.07 |
% |
|
1,522,433 |
|
568 |
0.15 |
% |
Total interest-earning
assets |
|
14,774,014 |
|
167,795 |
4.51 |
% |
|
14,860,043 |
|
145,250 |
3.89 |
% |
|
14,607,716 |
|
113,686 |
3.09 |
% |
Cash and due from banks |
|
201,369 |
|
|
|
191,358 |
|
|
|
201,941 |
|
|
Intangible assets |
|
967,005 |
|
|
|
967,154 |
|
|
|
964,575 |
|
|
Other assets |
|
635,452 |
|
|
|
626,926 |
|
|
|
676,408 |
|
|
Total assets |
$ |
16,577,840 |
|
|
$ |
16,645,481 |
|
|
$ |
16,450,640 |
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
Interest-bearing demand(2) |
$ |
6,018,679 |
$ |
12,534 |
0.83 |
% |
$ |
6,462,940 |
$ |
6,061 |
0.37 |
% |
$ |
6,460,178 |
$ |
3,487 |
0.21 |
% |
Savings deposits |
|
1,093,997 |
|
582 |
0.21 |
% |
|
1,134,665 |
|
155 |
0.05 |
% |
|
1,045,784 |
|
151 |
0.06 |
% |
Brokered deposits |
|
93,764 |
|
1,047 |
4.43 |
% |
|
— |
|
— |
— |
% |
|
— |
|
— |
— |
% |
Time deposits |
|
1,324,042 |
|
3,149 |
0.94 |
% |
|
1,240,439 |
|
1,025 |
0.33 |
% |
|
1,434,162 |
|
2,418 |
0.67 |
% |
Total interest-bearing
deposits |
|
8,530,482 |
|
17,312 |
0.81 |
% |
|
8,838,044 |
|
7,241 |
0.33 |
% |
|
8,940,124 |
|
6,056 |
0.27 |
% |
Borrowed funds |
|
893,705 |
|
9,918 |
4.42 |
% |
|
572,376 |
|
5,574 |
3.88 |
% |
|
434,546 |
|
4,381 |
4.03 |
% |
Total interest-bearing
liabilities |
|
9,424,187 |
|
27,230 |
1.15 |
% |
|
9,410,420 |
|
12,815 |
0.54 |
% |
|
9,374,670 |
|
10,437 |
0.44 |
% |
Noninterest-bearing deposits |
|
4,805,014 |
|
|
|
4,867,314 |
|
|
|
4,633,885 |
|
|
Other liabilities |
|
209,544 |
|
|
|
194,339 |
|
|
|
210,404 |
|
|
Shareholders’ equity |
|
2,139,095 |
|
|
|
2,173,408 |
|
|
|
2,231,681 |
|
|
Total liabilities and
shareholders’ equity |
$ |
16,577,840 |
|
|
$ |
16,645,481 |
|
|
$ |
16,450,640 |
|
|
Net interest income/ net interest
margin |
|
$ |
140,565 |
3.78 |
% |
|
$ |
132,435 |
3.54 |
% |
|
$ |
103,249 |
2.81 |
% |
Cost of funding |
|
|
0.76 |
% |
|
|
0.36 |
% |
|
|
0.30 |
% |
Cost of total deposits |
|
|
0.52 |
% |
|
|
0.21 |
% |
|
|
0.18 |
% |
(1) U.S. Government and some U.S. Government Agency securities
are tax-exempt in the states in which the Company operates.(2)
Interest-bearing demand deposits include interest-bearing
transactional accounts and money market deposits.
Net Interest Income and Net Interest Margin,
continued
(Dollars in thousands) |
Twelve Months Ended |
|
December 31, 2022 |
December 31, 2021 |
|
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
AverageBalance |
InterestIncome/Expense |
Yield/ Rate |
Interest-earning assets: |
|
|
|
|
|
|
Loans held for investment |
$ |
10,677,995 |
$ |
476,746 |
4.46 |
% |
$ |
10,310,070 |
$ |
427,296 |
4.15 |
% |
Loans held for sale |
|
203,981 |
|
9,212 |
4.52 |
% |
|
454,727 |
|
12,632 |
2.78 |
% |
Taxable securities(1) |
|
2,654,621 |
|
44,750 |
1.69 |
% |
|
1,691,531 |
|
24,370 |
1.44 |
% |
Tax-exempt securities |
|
446,895 |
|
10,655 |
2.38 |
% |
|
335,399 |
|
9,418 |
2.81 |
% |
Total securities |
|
3,101,516 |
|
55,405 |
1.79 |
% |
|
2,026,930 |
|
33,788 |
1.67 |
% |
Interest-bearing balances with
banks |
|
846,768 |
|
8,853 |
1.05 |
% |
|
1,263,364 |
|
1,688 |
0.13 |
% |
Total interest-earning
assets |
|
14,830,260 |
|
550,216 |
3.71 |
% |
|
14,055,091 |
|
475,404 |
3.38 |
% |
Cash and due from banks |
|
201,419 |
|
|
|
199,705 |
|
|
Intangible assets |
|
967,018 |
|
|
|
966,733 |
|
|
Other assets |
|
639,155 |
|
|
|
684,457 |
|
|
Total assets |
$ |
16,637,852 |
|
|
$ |
15,905,986 |
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
Interest-bearing demand(2) |
$ |
6,420,905 |
$ |
25,840 |
0.40 |
% |
$ |
6,177,944 |
$ |
15,308 |
0.25 |
% |
Savings deposits |
|
1,116,013 |
|
1,023 |
0.09 |
% |
|
976,616 |
|
698 |
0.07 |
% |
Brokered deposits |
|
23,634 |
|
1,047 |
4.43 |
% |
|
— |
|
— |
— |
% |
Time deposits |
|
1,310,398 |
|
7,298 |
0.56 |
% |
|
1,539,763 |
|
12,970 |
0.84 |
% |
Total interest-bearing
deposits |
|
8,870,950 |
|
35,208 |
0.40 |
% |
|
8,694,323 |
|
28,976 |
0.33 |
% |
Borrowed funds |
|
624,887 |
|
25,304 |
4.05 |
% |
|
470,993 |
|
15,708 |
3.34 |
% |
Total interest-bearing
liabilities |
|
9,495,837 |
|
60,512 |
0.64 |
% |
|
9,165,316 |
|
44,684 |
0.49 |
% |
Noninterest-bearing deposits |
|
4,760,432 |
|
|
|
4,310,834 |
|
|
Other liabilities |
|
196,980 |
|
|
|
220,427 |
|
|
Shareholders’ equity |
|
2,184,603 |
|
|
|
2,209,409 |
|
|
Total liabilities and
shareholders’ equity |
$ |
16,637,852 |
|
|
$ |
15,905,986 |
|
|
Net interest income/ net interest
margin |
|
$ |
489,704 |
3.30 |
% |
|
$ |
430,720 |
3.07 |
% |
Cost of funding |
|
|
0.42 |
% |
|
|
0.33 |
% |
Cost of total deposits |
|
|
0.26 |
% |
|
|
0.22 |
% |
(1) U.S. Government and some U.S. Government Agency securities
are tax-exempt in the states in which the Company operates.(2)
Interest-bearing demand deposits include interest-bearing
transactional accounts and money market deposits.
Supplemental Margin Information
(Dollars in thousands) |
Three Months Ended |
|
Twelve Months Ended |
|
Dec 31, 2022 |
Sep 30, 2022 |
Dec 31, 2021 |
|
Dec 31, 2022 |
Dec 31, 2021 |
Earning asset
mix: |
|
|
|
|
|
|
Loans held for investment, excluding Paycheck Protection Program
(“PPP”) loans (non-GAAP)(1) |
|
76.33 |
% |
|
72.83 |
% |
|
67.68 |
% |
|
|
71.90 |
% |
|
70.16 |
% |
PPP loans |
|
0.03 |
|
|
0.04 |
|
|
0.43 |
|
|
|
0.10 |
|
|
3.19 |
|
Loans held for sale |
|
0.79 |
|
|
0.97 |
|
|
3.41 |
|
|
|
1.38 |
|
|
3.24 |
|
Securities |
|
21.01 |
|
|
21.69 |
|
|
18.06 |
|
|
|
20.91 |
|
|
14.42 |
|
Interest-bearing balances with banks |
|
1.84 |
|
|
4.47 |
|
|
10.42 |
|
|
|
5.71 |
|
|
8.99 |
|
Total |
|
100.00 |
% |
|
100.00 |
% |
|
100.00 |
% |
|
|
100.00 |
% |
|
100.00 |
% |
|
|
|
|
|
|
|
Funding sources
mix: |
|
|
|
|
|
|
Noninterest-bearing demand |
|
33.77 |
% |
|
34.09 |
% |
|
33.08 |
% |
|
|
33.39 |
% |
|
32.00 |
% |
Interest-bearing demand |
|
42.30 |
|
|
45.27 |
|
|
46.11 |
|
|
|
45.04 |
|
|
45.84 |
|
Savings |
|
7.69 |
|
|
7.95 |
|
|
7.47 |
|
|
|
7.83 |
|
|
7.25 |
|
Brokered deposits |
|
0.66 |
|
|
— |
|
|
— |
|
|
|
0.17 |
|
|
— |
|
Time deposits |
|
9.31 |
|
|
8.69 |
|
|
10.24 |
|
|
|
9.19 |
|
|
11.42 |
|
Borrowed funds |
|
6.27 |
|
|
4.00 |
|
|
3.10 |
|
|
|
4.38 |
|
|
3.49 |
|
Total |
|
100.00 |
% |
|
100.00 |
% |
|
100.00 |
% |
|
|
100.00 |
% |
|
100.00 |
% |
|
|
|
|
|
|
|
Net interest income collected
on problem loans |
$ |
161 |
|
$ |
78 |
|
$ |
578 |
|
|
$ |
2,949 |
|
$ |
4,412 |
|
Total accretion on purchased
loans |
|
625 |
|
|
1,317 |
|
|
2,187 |
|
|
|
5,198 |
|
|
10,783 |
|
Total impact on net interest
income |
$ |
786 |
|
$ |
1,395 |
|
$ |
2,765 |
|
|
$ |
8,147 |
|
$ |
15,195 |
|
Impact on net interest
margin |
|
0.02 |
% |
|
0.04 |
% |
|
0.08 |
% |
|
|
0.05 |
% |
|
0.11 |
% |
Impact on loan yield |
|
0.03 |
% |
|
0.05 |
% |
|
0.11 |
% |
|
|
0.08 |
% |
|
0.15 |
% |
|
|
|
|
|
|
|
Interest income on PPP
loans |
$ |
21 |
|
$ |
5 |
|
$ |
485 |
|
|
$ |
719 |
|
$ |
24,794 |
|
PPP impact on net interest
margin |
|
— |
% |
|
— |
% |
|
— |
% |
|
|
— |
% |
|
0.08 |
% |
PPP impact on loan yield |
|
— |
% |
|
— |
% |
|
— |
% |
|
|
— |
% |
|
0.06 |
% |
(1) This is a non-GAAP financial measure. A
reconciliation of all non-GAAP financial measures disclosed in this
release from GAAP to non-GAAP is included in the tables at the end
of this release. The information below under the heading “Non-GAAP
Financial Measures” explains why the Company believes the non-GAAP
financial measures in this release provide useful information and
describes the other purposes for which the Company uses non-GAAP
financial measures.
Loan Portfolio
(Dollars in thousands) |
As of |
|
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
Mar 31, 2022 |
Dec 31, 2021 |
Loan
Portfolio: |
|
|
|
|
|
Commercial, financial, agricultural |
$ |
1,669,051 |
$ |
1,507,615 |
$ |
1,489,889 |
$ |
1,437,225 |
$ |
1,364,879 |
Lease financing |
|
115,013 |
|
103,357 |
|
101,350 |
|
89,842 |
|
76,125 |
Real estate - construction |
|
1,330,337 |
|
1,215,056 |
|
1,126,363 |
|
1,222,052 |
|
1,104,896 |
Real estate - 1-4 family mortgages |
|
3,216,263 |
|
3,127,889 |
|
3,030,083 |
|
2,840,979 |
|
2,724,246 |
Real estate - commercial mortgages |
|
5,118,063 |
|
5,016,665 |
|
4,717,513 |
|
4,577,864 |
|
4,549,037 |
Installment loans to individuals |
|
124,745 |
|
128,946 |
|
131,163 |
|
137,115 |
|
143,340 |
Subtotal |
|
11,573,472 |
|
11,099,528 |
|
10,596,361 |
|
10,305,077 |
|
9,962,523 |
PPP loans |
|
4,832 |
|
5,476 |
|
7,383 |
|
8,382 |
|
58,391 |
Total loans |
$ |
11,578,304 |
$ |
11,105,004 |
$ |
10,603,744 |
$ |
10,313,459 |
$ |
10,020,914 |
Credit Quality and Allowance for Credit Losses on
Loans
(Dollars in thousands) |
As of |
|
Dec 31, 2022 |
Sep 30, 2022 |
Jun 30, 2022 |
Mar 31, 2022 |
Dec 31, 2021 |
Nonperforming
Assets: |
|
|
|
|
|
Nonaccruing loans |
$ |
56,545 |
|
$ |
54,278 |
|
$ |
43,897 |
|
$ |
51,995 |
|
$ |
49,364 |
|
Loans 90 days or more past due |
|
331 |
|
|
1,587 |
|
|
617 |
|
|
247 |
|
|
1,441 |
|
Total nonperforming loans |
|
56,876 |
|
|
55,865 |
|
|
44,514 |
|
|
52,242 |
|
|
50,805 |
|
Other real estate owned |
|
1,763 |
|
|
2,412 |
|
|
2,807 |
|
|
2,062 |
|
|
2,540 |
|
Total nonperforming assets |
|
58,639 |
|
|
58,277 |
|
|
47,321 |
|
|
54,304 |
|
|
53,345 |
|
Allowance for credit losses on
loans |
$ |
192,090 |
|
$ |
174,356 |
|
$ |
166,131 |
|
$ |
166,468 |
|
$ |
164,171 |
|
Net loan charge-offs |
$ |
2,566 |
|
$ |
1,575 |
|
$ |
2,337 |
|
$ |
851 |
|
$ |
5,367 |
|
Annualized net loan
charge-offs / average loans |
|
0.09 |
% |
|
0.06 |
% |
|
0.09 |
% |
|
0.03 |
% |
|
0.21 |
% |
Nonperforming loans / total
loans |
|
0.49 |
|
|
0.50 |
|
|
0.42 |
|
|
0.51 |
|
|
0.51 |
|
Nonperforming assets / total
assets |
|
0.35 |
|
|
0.35 |
|
|
0.28 |
|
|
0.32 |
|
|
0.32 |
|
Allowance for credit losses on
loans / total loans |
|
1.66 |
|
|
1.57 |
|
|
1.57 |
|
|
1.61 |
|
|
1.64 |
|
Allowance for credit losses on
loans / nonperforming loans |
|
337.73 |
|
|
312.10 |
|
|
373.21 |
|
|
318.65 |
|
|
323.14 |
|
CONFERENCE CALL INFORMATION:A
live audio webcast of a conference call with analysts will be
available beginning at 10:00 AM Eastern Time (9:00 AM Central Time)
on Wednesday, January 25, 2023.
The webcast is accessible through Renasant’s
investor relations website at www.renasant.com or
https://event.choruscall.com/mediaframe/webcast.html?webcastid=4MTPtQZd.
To access the conference via telephone, dial 1-877-513-1143 in the
United States and request the Renasant Corporation 2022 Fourth
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
after the call and will remain accessible for one year. A replay is
accessible via telephone by dialing 1-877-344-7529 in the United
States and entering conference number 8052042 or by dialing
1-412-317-0088 internationally and entering the same conference
number. Telephone replay access is available until February 8,
2023.
ABOUT RENASANT
CORPORATION:Renasant Corporation is the parent of Renasant
Bank, a 119-year-old financial services institution. Renasant has
assets of approximately $17.0 billion and operates 198 banking,
lending, mortgage, wealth management and insurance offices
throughout the Southeast as well as offering factoring and
asset-based lending on a nationwide basis.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS:
This press release may contain, or incorporate
by reference, statements about Renasant Corporation that 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. Statements preceded
by, followed by or that otherwise include the words “believes,”
“expects,” “projects,” “anticipates,” “intends,” “estimates,”
“plans,” “potential,” “focus,” “possible,” “may increase,” “may
fluctuate,” “will likely result,” and similar expressions, or
future or conditional verbs such as “will,” “should,” “would” and
“could,” are generally forward-looking in nature and not historical
facts. Forward-looking statements include information about the
Company’s future financial performance, business strategy,
projected plans and objectives and are based on the current beliefs
and expectations of management. The Company’s management believes
these forward-looking statements are reasonable, but they are all
inherently subject to significant business, economic and
competitive risks and uncertainties, many of which are beyond the
Company’s control. In addition, these forward-looking statements
are subject to assumptions with respect to future business
strategies and decisions that are subject to change. Actual results
may differ from those indicated or implied in the forward-looking
statements, and such differences may be material. Prospective
investors are cautioned that any forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties and, accordingly, investors should not place undue
reliance on these forward-looking statements, which speak only as
of the date they are made.
Important factors currently known to management
that could cause our actual results to differ materially from those
in forward-looking statements include the following: (i) the
Company’s ability to efficiently integrate acquisitions into its
operations, retain the customers of these businesses, grow the
acquired operations and realize the cost savings expected from an
acquisition to the extent and in the timeframe anticipated by
management; (ii) the effect of economic conditions and interest
rates on a national, regional or international basis; (iii) timing
and success of the implementation of changes in operations to
achieve enhanced earnings or effect cost savings; (iv) competitive
pressures in the consumer finance, commercial finance, insurance,
financial services, asset management, retail banking, mortgage
lending and auto lending industries; (v) the financial resources
of, and products available from, competitors; (vi) changes in laws
and regulations as well as changes in accounting standards; (vii)
changes in policy by regulatory agencies; (viii) changes in the
securities and foreign exchange markets; (ix) the Company’s
potential growth, including its entrance or expansion into new
markets, and the need for sufficient capital to support that
growth; (x) changes in the quality or composition of the Company’s
loan or investment portfolios, including adverse developments in
borrower industries or in the repayment ability of individual
borrowers; (xi) an insufficient allowance for credit losses as a
result of inaccurate assumptions; (xii) general economic, market or
business conditions, including the impact of inflation; (xiii)
changes in demand for loan products and financial services; (xiv)
concentration of credit exposure; (xv) changes or the lack of
changes in interest rates, yield curves and interest rate spread
relationships; (xvi) increased cybersecurity risk, including
potential network breaches, business disruptions or financial
losses; (xvii) civil unrest, natural disasters, epidemics
(including the re-emergence of the COVID-19 pandemic) and other
catastrophic events in the Company’s geographic area; (xviii) the
impact, extent and timing of technological changes; and (xix) other
circumstances, many of which are beyond management’s control.
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 undertakes no obligation, and
specifically disclaims any obligation, to update or revise
forward-looking statements, whether as a result of new information
or to reflect changed assumptions, the occurrence of unanticipated
events or changes to future operating results over time, except as
required by federal securities laws.
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 and the presentation slides
furnished to the SEC on the same Form 8-K as this release contain
non-GAAP financial measures, including, without limitation, (i)
core loan yield, (ii) core net interest income and margin, (iii)
adjusted pre-provision net revenue, (iv) adjusted net income, (v)
adjusted diluted earnings per share, (vi) tangible book value per
share, (vii) the tangible common equity ratio, (viii) loans held
for investment excluding PPP loans, (ix) certain performance ratios
(namely, the ratio of adjusted pre-provision net revenue to average
assets, the adjusted return on average assets and on average
equity, and the return on average tangible assets and on average
tangible common equity (including on an as-adjusted basis)), and
(x) the adjusted efficiency ratio.
These non-GAAP financial measures adjust GAAP
financial measures to exclude intangible assets and/or certain
charges (such as, among others, merger and conversion expenses,
COVID-19 related expenses and expenses related to the voluntary
reimbursement of certain re-presentment NSF fees) with respect to
which the Company is unable to accurately predict when these
charges will be incurred or, when incurred, the amount thereof or,
with respect to core loan yield, to exclude the Company’s PPP
loans. With respect to COVID-19 related expenses in particular,
management added these expenses as a charge to exclude when
calculating non-GAAP financial measures because the expenses
included within this line item are readily quantifiable and possess
the same characteristics with respect to management’s inability to
accurately predict the timing or amount thereof as the other
charges excluded when calculating non-GAAP financial measures.
Management uses these non-GAAP financial measures when evaluating
capital utilization and adequacy; with respect to the core loan
yield, management excludes PPP loans, which bear an interest rate
fixed by Small Business Administration (“SBA”) regulations and are
both forgivable and guaranteed by the SBA, to more clearly measure
loan yields affected by competitive factors and potential loss in
the Company’s loan portfolio and the coverage therefor. In
addition, the Company believes that these non-GAAP financial
measures facilitate the making of period-to-period comparisons and
are meaningful indicators 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, charges such as debt prepayment penalties,
restructuring charges and COVID-19 related expenses, and the amount
of PPP loans 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 non-GAAP financial measures to
the most directly comparable GAAP financial measures are included
in the tables below under the caption “Non-GAAP
Reconciliations”.
None of the non-GAAP financial information that
the Company has included in this release or the accompanying
presentation slides are 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.
Non-GAAP Reconciliations
(Dollars in thousands, except
per share data) |
Three Months Ended |
|
Twelve Months Ended |
|
Dec 31,2022 |
Sep 30,2022 |
Jun 30,2022 |
Mar 31,2022 |
Dec 31,2021 |
|
Dec 31,2022 |
Dec 31,2021 |
Adjusted
Pre-Provision Net Revenue (“PPNR”) |
|
|
|
|
|
|
Net income (GAAP) |
$ |
46,276 |
|
$ |
46,567 |
|
$ |
39,678 |
|
$ |
33,547 |
|
$ |
37,054 |
|
|
$ |
166,068 |
|
$ |
175,892 |
|
Income taxes |
|
12,885 |
|
|
13,563 |
|
|
10,857 |
|
|
7,935 |
|
|
11,363 |
|
|
|
45,240 |
|
|
46,935 |
|
Provision for (recovery of)
credit losses (including unfunded commitments) |
|
10,671 |
|
|
9,800 |
|
|
2,450 |
|
|
950 |
|
|
(768 |
) |
|
|
23,871 |
|
|
(2,168 |
) |
Pre-provision net revenue
(non-GAAP) |
$ |
69,832 |
|
$ |
69,930 |
|
$ |
52,985 |
|
$ |
42,432 |
|
$ |
47,649 |
|
|
$ |
235,179 |
|
$ |
220,659 |
|
Merger and conversion
expense |
|
1,100 |
|
|
— |
|
|
— |
|
|
687 |
|
|
— |
|
|
|
1,787 |
|
|
— |
|
Debt prepayment penalties |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6,123 |
|
|
|
— |
|
|
6,123 |
|
Swap termination gains |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,676 |
) |
|
|
— |
|
|
(4,676 |
) |
Gain on sale of MSR |
|
— |
|
|
(2,960 |
) |
|
— |
|
|
— |
|
|
— |
|
|
|
(2,960 |
) |
|
— |
|
MSR valuation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(13,561 |
) |
Restructuring charges
(benefit) |
|
— |
|
|
— |
|
|
1,187 |
|
|
(455 |
) |
|
61 |
|
|
|
732 |
|
|
368 |
|
Voluntary reimbursement of
certain re-presentment NSF fees |
|
1,255 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,255 |
|
|
— |
|
COVID-19 related
expenses(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
33 |
|
|
|
— |
|
|
1,511 |
|
Adjusted pre-provision net
revenue (non-GAAP) |
$ |
72,187 |
|
$ |
66,970 |
|
$ |
54,172 |
|
$ |
42,664 |
|
$ |
49,190 |
|
|
$ |
235,993 |
|
$ |
210,424 |
|
|
|
|
|
|
|
|
|
|
Adjusted
Net Income and Adjusted Tangible Net Income |
|
|
|
|
|
|
Net income (GAAP) |
$ |
46,276 |
|
$ |
46,567 |
|
$ |
39,678 |
|
$ |
33,547 |
|
$ |
37,054 |
|
|
$ |
166,068 |
|
$ |
175,892 |
|
Amortization of
intangibles |
|
1,195 |
|
|
1,251 |
|
|
1,310 |
|
|
1,366 |
|
|
1,424 |
|
|
|
5,122 |
|
|
6,042 |
|
Tax effect of adjustments
noted above(2) |
|
(260 |
) |
|
(265 |
) |
|
(291 |
) |
|
(303 |
) |
|
(335 |
) |
|
|
(1,119 |
) |
|
(1,354 |
) |
Tangible net income
(non-GAAP) |
$ |
47,211 |
|
$ |
47,553 |
|
$ |
40,697 |
|
$ |
34,610 |
|
$ |
38,143 |
|
|
$ |
170,071 |
|
$ |
180,580 |
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
46,276 |
|
$ |
46,567 |
|
$ |
39,678 |
|
$ |
33,547 |
|
$ |
37,054 |
|
|
$ |
166,068 |
|
$ |
175,892 |
|
Merger and conversion
expense |
|
1,100 |
|
|
— |
|
|
— |
|
|
687 |
|
|
— |
|
|
|
1,787 |
|
|
— |
|
Debt prepayment penalties |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6,123 |
|
|
|
— |
|
|
6,123 |
|
Swap termination gain |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,676 |
) |
|
|
— |
|
|
(4,676 |
) |
Gain on sale of MSR |
|
— |
|
|
(2,960 |
) |
|
— |
|
|
— |
|
|
— |
|
|
|
(2,960 |
) |
|
— |
|
MSR valuation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(13,561 |
) |
Restructuring charges
(benefit) |
|
— |
|
|
— |
|
|
1,187 |
|
|
(455 |
) |
|
61 |
|
|
|
732 |
|
|
368 |
|
Initial provision for
acquisitions |
|
2,820 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2,820 |
|
|
— |
|
Voluntary reimbursement of
certain re-presentment NSF fees |
|
1,255 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,255 |
|
|
— |
|
COVID-19 related
expenses(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
33 |
|
|
|
— |
|
|
1,511 |
|
Tax effect of adjustments
noted above(2) |
|
(1,127 |
) |
|
626 |
|
|
(264 |
) |
|
(51 |
) |
|
(363 |
) |
|
|
(816 |
) |
|
2,294 |
|
Adjusted net income
(non-GAAP) |
$ |
50,324 |
|
$ |
44,233 |
|
$ |
40,601 |
|
$ |
33,728 |
|
$ |
38,232 |
|
|
$ |
168,886 |
|
$ |
167,951 |
|
Amortization of
intangibles |
|
1,195 |
|
|
1,251 |
|
|
1,310 |
|
|
1,366 |
|
|
1,424 |
|
|
|
5,122 |
|
|
6,042 |
|
Tax effect of adjustments
noted above(2) |
|
(260 |
) |
|
(265 |
) |
|
(291 |
) |
|
(303 |
) |
|
(335 |
) |
|
|
(1,119 |
) |
|
(1,354 |
) |
Adjusted tangible net income
(non-GAAP) |
$ |
51,259 |
|
$ |
45,219 |
|
$ |
41,620 |
|
$ |
34,791 |
|
$ |
39,321 |
|
|
$ |
172,889 |
|
$ |
172,639 |
|
Tangible
Assets and Tangible Shareholders’ Equity |
|
|
|
|
|
|
Average shareholders’ equity
(GAAP) |
$ |
2,139,095 |
|
$ |
2,173,408 |
|
$ |
2,177,537 |
|
$ |
2,249,667 |
|
$ |
2,231,681 |
|
|
$ |
2,184,603 |
|
$ |
2,209,409 |
|
Average intangible assets |
|
967,005 |
|
|
967,154 |
|
|
968,441 |
|
|
965,430 |
|
|
964,575 |
|
|
|
967,018 |
|
|
966,733 |
|
Average tangible shareholders’
equity (non-GAAP) |
$ |
1,172,090 |
|
$ |
1,206,254 |
|
$ |
1,209,096 |
|
$ |
1,284,237 |
|
$ |
1,267,106 |
|
|
$ |
1,217,585 |
|
$ |
1,242,676 |
|
|
|
|
|
|
|
|
|
|
Average assets (GAAP) |
$ |
16,577,840 |
|
$ |
16,645,481 |
|
$ |
16,631,290 |
|
$ |
16,697,264 |
|
$ |
16,450,640 |
|
|
$ |
16,637,852 |
|
$ |
15,905,986 |
|
Average intangible assets |
|
967,005 |
|
|
967,154 |
|
|
968,441 |
|
|
965,430 |
|
|
964,575 |
|
|
|
967,018 |
|
|
966,733 |
|
Average tangible assets
(non-GAAP) |
$ |
15,610,835 |
|
$ |
15,678,327 |
|
$ |
15,662,849 |
|
$ |
15,731,834 |
|
$ |
15,486,065 |
|
|
$ |
15,670,834 |
|
$ |
14,939,253 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
(GAAP) |
$ |
2,136,016 |
|
$ |
2,092,281 |
|
$ |
2,116,877 |
|
$ |
2,137,642 |
|
$ |
2,209,853 |
|
|
$ |
2,136,016 |
|
$ |
2,209,853 |
|
Intangible assets |
|
1,015,884 |
|
|
966,461 |
|
|
967,713 |
|
|
969,022 |
|
|
963,781 |
|
|
|
1,015,884 |
|
|
963,781 |
|
Tangible shareholders’ equity
(non-GAAP) |
$ |
1,120,132 |
|
$ |
1,125,820 |
|
$ |
1,149,164 |
|
$ |
1,168,620 |
|
$ |
1,246,072 |
|
|
$ |
1,120,132 |
|
$ |
1,246,072 |
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
$ |
16,988,176 |
|
$ |
16,471,099 |
|
$ |
16,618,101 |
|
$ |
16,863,757 |
|
$ |
16,810,311 |
|
|
$ |
16,988,176 |
|
$ |
16,810,311 |
|
Intangible assets |
|
1,015,884 |
|
|
966,461 |
|
|
967,713 |
|
|
969,022 |
|
|
963,781 |
|
|
|
1,015,884 |
|
|
963,781 |
|
Total tangible assets
(non-GAAP) |
$ |
15,972,292 |
|
$ |
15,504,638 |
|
$ |
15,650,388 |
|
$ |
15,894,735 |
|
$ |
15,846,530 |
|
|
$ |
15,972,292 |
|
$ |
15,846,530 |
|
|
|
|
|
|
|
|
|
|
Adjusted Performance
Ratios |
|
|
|
|
|
|
|
|
Return on average assets
(GAAP) |
|
1.11 |
% |
|
1.11 |
% |
|
0.96 |
% |
|
0.81 |
% |
|
0.89 |
% |
|
|
1.00 |
% |
|
1.11 |
% |
Adjusted return on average
assets (non-GAAP) |
|
1.20 |
% |
|
1.05 |
% |
|
0.98 |
% |
|
0.82 |
% |
|
0.92 |
% |
|
|
1.02 |
% |
|
1.06 |
% |
Return on average tangible
assets (non-GAAP) |
|
1.20 |
% |
|
1.20 |
% |
|
1.04 |
% |
|
0.89 |
% |
|
0.98 |
% |
|
|
1.09 |
% |
|
1.21 |
% |
Adjusted pre-provision net
revenue to average assets (non-GAAP) |
|
1.73 |
% |
|
1.60 |
% |
|
1.31 |
% |
|
1.04 |
% |
|
1.19 |
% |
|
|
1.42 |
% |
|
1.32 |
% |
Adjusted return on average
tangible assets (non-GAAP) |
|
1.30 |
% |
|
1.14 |
% |
|
1.07 |
% |
|
0.90 |
% |
|
1.01 |
% |
|
|
1.10 |
% |
|
1.16 |
% |
Return on average equity
(GAAP) |
|
8.58 |
% |
|
8.50 |
% |
|
7.31 |
% |
|
6.05 |
% |
|
6.59 |
% |
|
|
7.60 |
% |
|
7.96 |
% |
Adjusted return on average
equity (non-GAAP) |
|
9.33 |
% |
|
8.07 |
% |
|
7.48 |
% |
|
6.08 |
% |
|
6.80 |
% |
|
|
7.73 |
% |
|
7.60 |
% |
Return on average tangible
equity (non-GAAP) |
|
15.98 |
% |
|
15.64 |
% |
|
13.50 |
% |
|
10.93 |
% |
|
11.94 |
% |
|
|
13.97 |
% |
|
14.53 |
% |
Adjusted return on average
tangible equity (non-GAAP) |
|
17.35 |
% |
|
14.87 |
% |
|
13.81 |
% |
|
10.99 |
% |
|
12.31 |
% |
|
|
14.20 |
% |
|
13.89 |
% |
|
|
|
|
|
|
|
|
|
Adjusted
Diluted Earnings Per Share |
|
|
|
|
|
|
Average diluted shares
outstanding |
|
56,335,446 |
|
|
56,248,720 |
|
|
56,182,845 |
|
|
56,081,863 |
|
|
56,105,050 |
|
|
|
56,214,230 |
|
|
56,424,484 |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
(GAAP) |
$ |
0.82 |
|
$ |
0.83 |
|
$ |
0.71 |
|
$ |
0.60 |
|
$ |
0.66 |
|
|
$ |
2.95 |
|
$ |
3.12 |
|
Adjusted diluted earnings per
share (non-GAAP) |
$ |
0.89 |
|
$ |
0.79 |
|
$ |
0.72 |
|
$ |
0.60 |
|
$ |
0.68 |
|
|
$ |
3.00 |
|
$ |
2.98 |
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
Per Share |
|
|
|
|
|
|
|
|
Shares outstanding |
|
55,953,104 |
|
|
55,953,104 |
|
|
55,932,017 |
|
|
55,880,666 |
|
|
55,756,233 |
|
|
|
55,953,104 |
|
|
55,756,233 |
|
|
|
|
|
|
|
|
|
|
Book value per share
(GAAP) |
$ |
38.18 |
|
$ |
37.39 |
|
$ |
37.85 |
|
$ |
38.25 |
|
$ |
39.63 |
|
|
$ |
38.18 |
|
$ |
39.63 |
|
Tangible book value per share
(non-GAAP) |
$ |
20.02 |
|
$ |
20.12 |
|
$ |
20.55 |
|
$ |
20.91 |
|
$ |
22.35 |
|
|
$ |
20.02 |
|
$ |
22.35 |
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity
Ratio |
|
|
|
|
|
|
|
|
Shareholders’ equity to assets
(GAAP) |
|
12.57 |
% |
|
12.70 |
% |
|
12.74 |
% |
|
12.68 |
% |
|
13.15 |
% |
|
|
12.57 |
% |
|
13.15 |
% |
Tangible common equity ratio
(non-GAAP) |
|
7.01 |
% |
|
7.26 |
% |
|
7.34 |
% |
|
7.35 |
% |
|
7.86 |
% |
|
|
7.01 |
% |
|
7.86 |
% |
Adjusted Efficiency
Ratio |
|
|
|
|
|
|
|
|
Net interest income (FTE)
(GAAP) |
$ |
140,565 |
|
$ |
132,435 |
|
$ |
115,321 |
|
$ |
101,383 |
|
$ |
103,249 |
|
|
$ |
489,704 |
|
$ |
430,720 |
|
|
|
|
|
|
|
|
|
|
Total noninterest income
(GAAP) |
$ |
33,395 |
|
$ |
41,186 |
|
$ |
37,214 |
|
$ |
37,458 |
|
$ |
47,582 |
|
|
$ |
149,253 |
|
$ |
226,984 |
|
MSR valuation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
13,561 |
|
Gain on sale of MSR |
|
— |
|
|
2,960 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2,960 |
|
|
— |
|
Swap termination gains |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,676 |
|
|
|
— |
|
|
4,676 |
|
Securities gains |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
49 |
|
|
|
— |
|
|
2,170 |
|
Total adjusted noninterest
income (non-GAAP) |
$ |
33,395 |
|
$ |
38,226 |
|
$ |
37,214 |
|
$ |
37,458 |
|
$ |
42,857 |
|
|
$ |
146,293 |
|
$ |
206,577 |
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP) |
$ |
101,582 |
|
$ |
101,574 |
|
$ |
98,194 |
|
$ |
94,105 |
|
$ |
101,115 |
|
|
$ |
395,455 |
|
$ |
429,826 |
|
Amortization of
intangibles |
|
1,195 |
|
|
1,251 |
|
|
1,310 |
|
|
1,366 |
|
|
1,424 |
|
|
|
5,122 |
|
|
6,042 |
|
Merger and conversion
expense |
|
1,100 |
|
|
— |
|
|
— |
|
|
687 |
|
|
— |
|
|
|
1,787 |
|
|
— |
|
Debt prepayment penalty |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6,123 |
|
|
|
— |
|
|
6,123 |
|
Restructuring charges
(benefit) |
|
— |
|
|
— |
|
|
1,187 |
|
|
(455 |
) |
|
61 |
|
|
|
732 |
|
|
368 |
|
Voluntary reimbursement of
certain re-presentment NSF fees |
|
1,255 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,255 |
|
|
— |
|
Provision (recovery) of
unfunded commitments |
|
183 |
|
|
— |
|
|
450 |
|
|
(550 |
) |
|
(300 |
) |
|
|
83 |
|
|
(500 |
) |
COVID-19 related
expenses(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
33 |
|
|
|
— |
|
|
1,511 |
|
Total adjusted noninterest
expense (non-GAAP) |
$ |
97,849 |
|
$ |
100,323 |
|
$ |
95,247 |
|
$ |
93,057 |
|
$ |
93,774 |
|
|
$ |
386,476 |
|
$ |
416,282 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
58.39 |
% |
|
58.50 |
% |
|
64.37 |
% |
|
67.78 |
% |
|
67.04 |
% |
|
|
61.89 |
% |
|
65.35 |
% |
Adjusted efficiency ratio
(non-GAAP) |
|
56.25 |
% |
|
58.78 |
% |
|
62.44 |
% |
|
67.02 |
% |
|
64.18 |
% |
|
|
60.77 |
% |
|
65.32 |
% |
|
|
|
|
|
|
|
|
|
Core Net
Interest Income and Core Net Interest Margin |
|
|
|
|
|
|
Net interest income (FTE)
(GAAP) |
$ |
140,565 |
|
$ |
132,435 |
|
$ |
115,321 |
|
$ |
101,383 |
|
$ |
103,249 |
|
|
$ |
489,704 |
|
$ |
430,720 |
|
Net interest income collected
on problem loans |
|
161 |
|
|
78 |
|
|
2,276 |
|
|
434 |
|
|
577 |
|
|
|
2,949 |
|
|
4,412 |
|
Accretion recognized on
purchased loans |
|
625 |
|
|
1,317 |
|
|
2,021 |
|
|
1,235 |
|
|
2,187 |
|
|
|
5,198 |
|
|
10,783 |
|
Interest income recognized on
PPP loans |
|
21 |
|
|
5 |
|
|
74 |
|
|
619 |
|
|
485 |
|
|
|
719 |
|
|
24,794 |
|
Non-core net interest
income |
$ |
807 |
|
$ |
1,400 |
|
$ |
4,371 |
|
$ |
2,288 |
|
$ |
3,249 |
|
|
$ |
8,866 |
|
$ |
39,989 |
|
Core net interest income (FTE)
(non-GAAP) |
$ |
139,758 |
|
$ |
131,035 |
|
$ |
110,950 |
|
$ |
99,095 |
|
$ |
99,999 |
|
|
$ |
480,838 |
|
$ |
390,731 |
|
|
|
|
|
|
|
|
|
|
Average earning assets
(GAAP) |
$ |
14,774,014 |
|
$ |
14,860,043 |
|
$ |
14,845,199 |
|
$ |
14,841,146 |
|
$ |
14,607,716 |
|
|
$ |
14,830,260 |
|
$ |
14,055,091 |
|
Average PPP loans |
|
4,940 |
|
|
6,647 |
|
|
7,863 |
|
|
39,506 |
|
|
62,726 |
|
|
|
14,619 |
|
|
448,959 |
|
Average earning assets
excluding PPP loans (non-GAAP) |
$ |
14,769,074 |
|
$ |
14,853,396 |
|
$ |
14,837,336 |
|
$ |
14,801,640 |
|
$ |
14,544,990 |
|
|
$ |
14,815,641 |
|
$ |
13,606,132 |
|
|
|
|
|
|
|
|
|
|
Net interest margin
(GAAP) |
|
3.78 |
% |
|
3.54 |
% |
|
3.11 |
% |
|
2.76 |
% |
|
2.81 |
% |
|
|
3.30 |
% |
|
3.07 |
% |
Core net interest margin
(non-GAAP) |
|
3.76 |
% |
|
3.50 |
% |
|
3.00 |
% |
|
2.71 |
% |
|
2.73 |
% |
|
|
3.25 |
% |
|
2.87 |
% |
Core Loan
Yield |
|
|
|
|
|
|
|
|
Loan interest income (FTE)
(GAAP) |
$ |
147,519 |
|
$ |
124,614 |
|
$ |
107,612 |
|
$ |
97,001 |
|
$ |
99,670 |
|
|
$ |
476,746 |
|
$ |
427,296 |
|
Net interest income collected
on problem loans |
|
161 |
|
|
78 |
|
|
2,276 |
|
|
434 |
|
|
578 |
|
|
|
2,949 |
|
|
4,412 |
|
Accretion recognized on
purchased loans |
|
625 |
|
|
1,317 |
|
|
2,021 |
|
|
1,235 |
|
|
2,187 |
|
|
|
5,198 |
|
|
10,783 |
|
Interest income recognized on
PPP loans |
|
21 |
|
|
5 |
|
|
74 |
|
|
619 |
|
|
485 |
|
|
|
719 |
|
|
24,794 |
|
Core loan interest income
(FTE) (non-GAAP) |
$ |
146,712 |
|
$ |
123,214 |
|
$ |
103,241 |
|
$ |
94,713 |
|
$ |
96,420 |
|
|
$ |
467,880 |
|
$ |
387,307 |
|
|
|
|
|
|
|
|
|
|
Average loans (GAAP) |
$ |
11,282,422 |
|
$ |
10,829,137 |
|
$ |
10,477,036 |
|
$ |
10,108,511 |
|
$ |
9,948,610 |
|
|
$ |
10,677,995 |
|
$ |
10,310,070 |
|
Average PPP loans |
|
4,940 |
|
|
6,647 |
|
|
7,863 |
|
|
39,506 |
|
|
62,726 |
|
|
|
14,619 |
|
|
448,959 |
|
Average loans excluding PPP
loans (non-GAAP) |
$ |
11,277,482 |
|
$ |
10,822,490 |
|
$ |
10,469,173 |
|
$ |
10,069,005 |
|
$ |
9,885,884 |
|
|
$ |
10,663,376 |
|
$ |
9,861,111 |
|
|
|
|
|
|
|
|
|
|
Loan yield (GAAP) |
|
5.19 |
% |
|
4.57 |
% |
|
4.12 |
% |
|
3.88 |
% |
|
3.98 |
% |
|
|
4.46 |
% |
|
4.15 |
% |
Core loan yield
(non-GAAP) |
|
5.16 |
% |
|
4.52 |
% |
|
3.96 |
% |
|
3.82 |
% |
|
3.87 |
% |
|
|
4.39 |
% |
|
3.93 |
% |
|
|
|
|
|
|
|
|
|
Adjusted Asset Quality
Ratios |
|
|
|
|
|
|
|
|
Classified loans |
$ |
200,249 |
|
$ |
193,844 |
|
$ |
185,267 |
|
$ |
178,015 |
|
$ |
160,790 |
|
|
$ |
200,249 |
|
$ |
160,790 |
|
Special Mention loans |
|
86,172 |
|
|
69,883 |
|
|
87,476 |
|
|
76,949 |
|
|
115,496 |
|
|
|
86,172 |
|
|
115,496 |
|
Criticized loans(3) |
$ |
286,421 |
|
$ |
263,727 |
|
$ |
272,743 |
|
$ |
254,964 |
|
$ |
276,286 |
|
|
$ |
286,421 |
|
$ |
276,286 |
|
Criticized loans / total loans
(GAAP) |
|
2.47 |
% |
|
2.37 |
% |
|
2.57 |
% |
|
2.47 |
% |
|
2.76 |
% |
|
|
2.47 |
% |
|
2.76 |
% |
(1) Primarily consists of employee overtime and
employee benefit accruals directly related to the response to the
COVID-19 pandemic and federal legislation enacted to address the
pandemic, such as the CARES Act, and expenses associated with
supplying branches with protective equipment and sanitation
supplies (such as floor markings and cautionary signage for
branches, face coverings and hand sanitizer) as well as more
frequent and rigorous branch cleaning.(2) Tax effect is calculated
based on the respective periods’ effective tax rate excluding the
impact of discrete items.(3) Criticized loans include loans in risk
rating classifications of classified and special mention.
Contacts: |
For Media: |
For Financials: |
|
John S. Oxford |
James C. Mabry
IV |
|
Senior Vice President |
Executive Vice
President |
|
Chief Marketing Officer |
Chief Financial
Officer |
|
(662) 680-1219 |
(662)
680-1281 |
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