Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________________________________
FORM 10-Q
________________________________________________________
(Mark One)
|
| |
ý | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended September 30, 2016
Or
|
| |
o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from to
Commission file number: 001-13253
________________________________________________________
RENASANT CORPORATION
(Exact name of registrant as specified in its charter)
________________________________________________________
|
| | |
Mississippi | | 64-0676974 |
(State or other jurisdiction of | | (I.R.S. Employer |
incorporation or organization) | | Identification No.) |
| | |
209 Troy Street, Tupelo, Mississippi | | 38804-4827 |
(Address of principal executive offices) | | (Zip Code) |
(662) 680-1001
(Registrant’s telephone number, including area code)
________________________________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
|
| | | |
Large accelerated filer | ý | Accelerated filer | o |
| | | |
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
As of October 31, 2016, 42,102,536 shares of the registrant’s common stock, $5.00 par value per share, were outstanding.
Renasant Corporation and Subsidiaries
Form 10-Q
For the Quarterly Period Ended September 30, 2016
CONTENTS
|
| | |
| | Page |
PART I | | |
Item 1. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Item 2. | | |
| | |
Item 3. | | |
| | |
Item 4. | | |
| | |
PART II | | |
Item 1A. | | |
| | |
Item 2. | | |
| | |
Item 6. | | |
| |
| |
| |
| |
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Renasant Corporation and Subsidiaries
Consolidated Balance Sheets
(In Thousands, Except Share Data) |
| | | | | | | |
| (Unaudited) | | |
| September 30, 2016 | | December 31, 2015 |
Assets | | | |
Cash and due from banks | $ | 143,478 |
| | $ | 177,007 |
|
Interest-bearing balances with banks | 73,913 |
| | 34,564 |
|
Cash and cash equivalents | 217,391 |
| | 211,571 |
|
Securities held to maturity (fair value of $381,950 and $473,753, respectively) | 362,319 |
| | 458,400 |
|
Securities available for sale, at fair value | 677,638 |
| | 646,805 |
|
Mortgage loans held for sale, at fair value | 189,965 |
| | 225,254 |
|
Loans, net of unearned income: | | | |
Acquired and covered by FDIC loss-share agreements ("acquired covered loans") | 30,533 |
| | 93,142 |
|
Acquired and not covered by FDIC loss-share agreements ("acquired not covered loans") | 1,548,674 |
| | 1,489,886 |
|
Not acquired | 4,526,026 |
| | 3,830,434 |
|
Total loans, net of unearned income | 6,105,233 |
| | 5,413,462 |
|
Allowance for loan losses | (45,924 | ) | | (42,437 | ) |
Loans, net | 6,059,309 |
| | 5,371,025 |
|
Premises and equipment, net | 177,779 |
| | 169,128 |
|
Other real estate owned: | | | |
Acquired and covered by FDIC loss-share agreements ("acquired covered OREO") | 926 |
| | 2,818 |
|
Acquired and not covered by FDIC loss-share agreements ("acquired not covered OREO") | 16,973 |
| | 19,597 |
|
Not acquired | 8,429 |
| | 12,987 |
|
Total other real estate owned, net | 26,328 |
| | 35,402 |
|
Goodwill | 470,534 |
| | 445,871 |
|
Other intangible assets, net | 25,699 |
| | 28,811 |
|
FDIC loss-share indemnification asset | 4,053 |
| | 7,149 |
|
Other assets | 331,456 |
| | 327,080 |
|
Total assets | $ | 8,542,471 |
| | $ | 7,926,496 |
|
Liabilities and shareholders’ equity | | | |
Liabilities | | | |
Deposits | | | |
Noninterest-bearing | $ | 1,514,820 |
| | $ | 1,278,337 |
|
Interest-bearing | 5,302,978 |
| | 4,940,265 |
|
Total deposits | 6,817,798 |
| | 6,218,602 |
|
Short-term borrowings | 266,943 |
| | 422,279 |
|
Long-term debt | 202,637 |
| | 148,217 |
|
Other liabilities | 112,846 |
| | 100,580 |
|
Total liabilities | 7,400,224 |
| | 6,889,678 |
|
Shareholders’ equity | | | |
Preferred stock, $.01 par value – 5,000,000 shares authorized; no shares issued and outstanding | — |
| | — |
|
Common stock, $5.00 par value – 150,000,000 shares authorized, 42,972,066 and 41,292,045 shares issued, respectively; 42,102,224 and 40,293,291 shares outstanding, respectively | 214,860 |
| | 206,460 |
|
Treasury stock, at cost | (21,222 | ) | | (22,385 | ) |
Additional paid-in capital | 633,340 |
| | 585,938 |
|
Retained earnings | 321,527 |
| | 276,340 |
|
Accumulated other comprehensive loss, net of taxes | (6,258 | ) | | (9,535 | ) |
Total shareholders’ equity | 1,142,247 |
| | 1,036,818 |
|
Total liabilities and shareholders’ equity | $ | 8,542,471 |
| | $ | 7,926,496 |
|
See Notes to Consolidated Financial Statements.
Renasant Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(In Thousands, Except Share Data)
|
| | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | September 30, |
| 2016 | | 2015 | | 2016 | | 2015 |
Interest income | | | | | | | |
Loans | $ | 76,759 |
| | $ | 67,527 |
| | $ | 222,781 |
| | $ | 165,418 |
|
Securities | | | | | | | |
Taxable | 3,717 |
| | 4,193 |
| | 12,832 |
| | 12,634 |
|
Tax-exempt | 2,425 |
| | 2,529 |
| | 7,378 |
| | 7,029 |
|
Other | 131 |
| | 51 |
| | 308 |
| | 154 |
|
Total interest income | 83,032 |
| | 74,300 |
| | 243,299 |
| | 185,235 |
|
Interest expense | | | | | | | |
Deposits | 4,638 |
| | 3,615 |
| | 13,018 |
| | 10,340 |
|
Borrowings | 2,663 |
| | 2,073 |
| | 7,339 |
| | 5,888 |
|
Total interest expense | 7,301 |
| | 5,688 |
| | 20,357 |
| | 16,228 |
|
Net interest income | 75,731 |
| | 68,612 |
| | 222,942 |
| | 169,007 |
|
Provision for loan losses | 2,650 |
| | 750 |
| | 5,880 |
| | 3,000 |
|
Net interest income after provision for loan losses | 73,081 |
| | 67,862 |
| | 217,062 |
| | 166,007 |
|
Noninterest income | | | | | | | |
Service charges on deposit accounts | 8,200 |
| | 8,151 |
| | 23,712 |
| | 21,008 |
|
Fees and commissions | 4,921 |
| | 4,271 |
| | 14,042 |
| | 11,408 |
|
Insurance commissions | 2,420 |
| | 2,381 |
| | 6,557 |
| | 6,467 |
|
Wealth management revenue | 3,040 |
| | 2,833 |
| | 8,803 |
| | 7,199 |
|
Mortgage banking income | 15,846 |
| | 11,893 |
| | 41,181 |
| | 24,113 |
|
Net gain on sales of securities | — |
| | — |
| | 1,186 |
| | 96 |
|
BOLI income | 979 |
| | 1,110 |
| | 2,929 |
| | 2,668 |
|
Other | 2,866 |
| | 1,440 |
| | 8,750 |
| | 3,869 |
|
Total noninterest income | 38,272 |
| | 32,079 |
| | 107,160 |
| | 76,828 |
|
Noninterest expense | | | | | | | |
Salaries and employee benefits | 44,702 |
| | 43,048 |
| | 132,482 |
| | 101,702 |
|
Data processing | 4,560 |
| | 3,819 |
| | 13,220 |
| | 10,248 |
|
Net occupancy and equipment | 8,830 |
| | 7,733 |
| | 25,585 |
| | 18,816 |
|
Other real estate owned | 1,540 |
| | 861 |
| | 4,111 |
| | 2,347 |
|
Professional fees | 1,313 |
| | 1,242 |
| | 3,789 |
| | 3,238 |
|
Advertising and public relations | 1,661 |
| | 1,567 |
| | 5,040 |
| | 4,351 |
|
Intangible amortization | 1,684 |
| | 1,803 |
| | 5,123 |
| | 4,317 |
|
Communications | 2,097 |
| | 2,339 |
| | 6,308 |
| | 5,263 |
|
Extinguishment of debt | 2,210 |
| | — |
| | 2,539 |
| | — |
|
Merger and conversion related expenses | 268 |
| | 7,746 |
| | 4,023 |
| | 9,691 |
|
Other | 7,603 |
| | 5,821 |
| | 21,321 |
| | 14,407 |
|
Total noninterest expense | 76,468 |
| | 75,979 |
| | 223,541 |
| | 174,380 |
|
Income before income taxes | 34,885 |
| | 23,962 |
| | 100,681 |
| | 68,455 |
|
Income taxes | 11,706 |
| | 7,742 |
| | 33,386 |
| | 21,601 |
|
Net income | $ | 23,179 |
| | $ | 16,220 |
| | $ | 67,295 |
| | $ | 46,854 |
|
Basic earnings per share | $ | 0.55 |
| | $ | 0.40 |
| | $ | 1.62 |
| | $ | 1.36 |
|
Diluted earnings per share | $ | 0.55 |
| | $ | 0.40 |
| | $ | 1.61 |
| | $ | 1.35 |
|
Cash dividends per common share | $ | 0.18 |
| | $ | 0.17 |
| | $ | 0.53 |
| | $ | 0.51 |
|
See Notes to Consolidated Financial Statements.
Renasant Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Unaudited)
(In Thousands, Except Share Data)
|
| | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | September 30, |
| 2016 | | 2015 | | 2016 | | 2015 |
Net income | $ | 23,179 |
| | $ | 16,220 |
| | $ | 67,295 |
| | $ | 46,854 |
|
Other comprehensive income, net of tax: | | | | | | | |
Securities available for sale: | | | | | | | |
Unrealized holding gains on securities | 1,385 |
| | 3,717 |
| | 5,260 |
| | 2,505 |
|
Reclassification adjustment for gains realized in net income | — |
| | — |
| | (728 | ) | | (60 | ) |
Amortization of unrealized holding gains on securities transferred to the held to maturity category | (11 | ) | | (26 | ) | | (49 | ) | | (86 | ) |
Total securities | 1,374 |
| | 3,691 |
| | 4,483 |
| | 2,359 |
|
Derivative instruments: | | | | | | | |
Unrealized holding gains (losses) on derivative instruments | 495 |
| | (1,075 | ) | | (1,199 | ) | | (881 | ) |
Totals derivative instruments | 495 |
| | (1,075 | ) | | (1,199 | ) | | (881 | ) |
Defined benefit pension and post-retirement benefit plans: | | | | | | | |
Reclassification adjustment for net settlement gain realized in net income | (235 | ) | | — |
| | (235 | ) | | — |
|
Amortization of net actuarial loss recognized in net periodic pension cost | 76 |
| | 55 |
| | 228 |
| | 180 |
|
Total defined benefit pension and post-retirement benefit plans | (159 | ) | | 55 |
| | (7 | ) | | 180 |
|
Other comprehensive income, net of tax | 1,710 |
| | 2,671 |
| | 3,277 |
| | 1,658 |
|
Comprehensive income | $ | 24,889 |
| | $ | 18,891 |
| | $ | 70,572 |
| | $ | 48,512 |
|
See Notes to Consolidated Financial Statements.
Renasant Corporation and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
(In Thousands) |
| | | | | | | |
| Nine Months Ended September 30, |
| 2016 | | 2015 |
Operating activities | | | |
Net income | $ | 67,295 |
| | $ | 46,854 |
|
Adjustments to reconcile net income to net cash used in operating activities, net of effects from acquisitions: | | | |
Provision for loan losses | 5,880 |
| | 3,000 |
|
Depreciation, amortization and accretion | 839 |
| | 5,053 |
|
Deferred income tax expense | 5,663 |
| | 3,794 |
|
Funding of mortgage loans held for sale | (1,516,650 | ) | | (992,555 | ) |
Proceeds from sales of mortgage loans held for sale | 1,579,476 |
| | 1,069,625 |
|
Gains on sales of mortgage loans held for sale | (26,687 | ) | | (20,618 | ) |
Gains on sales of securities | (1,186 | ) | | (96 | ) |
Penalty on extinguishment of debt | 2,539 |
| | — |
|
Losses on sales of premises and equipment | 105 |
| | 37 |
|
Stock-based compensation | 2,563 |
| | 2,739 |
|
Decrease in FDIC loss-share indemnification asset, net of accretion | 2,442 |
| | 5,202 |
|
Decrease in other assets | 7,556 |
| | 17,182 |
|
Decrease in other liabilities | (5,097 | ) | | (11,047 | ) |
Net cash provided by operating activities | 124,738 |
| | 129,170 |
|
Investing activities | | | |
Purchases of securities available for sale | (82,243 | ) | | (54,256 | ) |
Proceeds from sales of securities available for sale | 4,028 |
| | 8,444 |
|
Proceeds from call/maturities of securities available for sale | 117,232 |
| | 83,488 |
|
Purchases of securities held to maturity | (10,644 | ) | | (137,776 | ) |
Proceeds from call/maturities of securities held to maturity | 109,305 |
| | 121,438 |
|
Net increase in loans | (407,570 | ) | | (177,740 | ) |
Purchases of premises and equipment | (8,958 | ) | | (19,364 | ) |
Proceeds from sales of premises and equipment | 2,462 |
| | 448 |
|
Proceeds from sales of other assets | 11,040 |
| | — |
|
Net cash received in acquisition of businesses | 25,263 |
| | 35,787 |
|
Net cash used in investing activities | (240,085 | ) | | (139,531 | ) |
Financing activities | | | |
Net increase in noninterest-bearing deposits | 163,406 |
| | 107,728 |
|
Net increase (decrease) in interest-bearing deposits | 85,005 |
| | (85,693 | ) |
Net (decrease) increase in short-term borrowings | (157,685 | ) | | 355,063 |
|
Proceeds from long-term borrowings | 98,434 |
| | 42 |
|
Repayment of long-term debt | (46,964 | ) | | (307,230 | ) |
Cash paid for dividends | (22,108 | ) | | (17,681 | ) |
Cash received on exercise of stock options | 415 |
| | 102 |
|
Excess tax benefit from stock-based compensation | 664 |
| | 296 |
|
Net cash provided by financing activities | 121,167 |
| | 52,627 |
|
Net increase in cash and cash equivalents | 5,820 |
| | 42,266 |
|
Cash and cash equivalents at beginning of period | 211,571 |
| | 161,583 |
|
Cash and cash equivalents at end of period | $ | 217,391 |
| | $ | 203,849 |
|
Supplemental disclosures | | | |
Cash paid for interest | $ | 19,658 |
| | $ | 15,936 |
|
Cash paid for income taxes | $ | 22,731 |
| | $ | 10,768 |
|
Noncash transactions: | | | |
Transfers of loans to other real estate owned | $ | 5,147 |
| | $ | 12,268 |
|
Financed sales of other real estate owned | $ | 538 |
| | $ | 1,017 |
|
Transfers of loans held for sale to loan portfolio | $ | 15,455 |
| | $ | — |
|
Common stock issued in acquisition of businesses | $ | 55,290 |
| | $ | 281,530 |
|
See Notes to Consolidated Financial Statements.
Renasant Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note A – Summary of Significant Accounting Policies
Nature of Operations: Renasant Corporation (referred to herein as the “Company”) owns and operates Renasant Bank (“Renasant Bank” or the “Bank”) and Renasant Insurance, Inc. The Company offers a diversified range of financial, fiduciary and insurance services to its retail and commercial customers through its subsidiaries and full service offices located throughout north and central Mississippi, Tennessee, Georgia, north and central Alabama and north Florida.
Basis of Presentation: The accompanying unaudited consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior year amounts have been reclassified to conform to the current year presentation. For further information regarding the Company’s significant accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission on February 29, 2016.
Business Combinations: The Company completed its acquisitions of Heritage Financial Group, Inc. (“Heritage”) and KeyWorth Bank ("KeyWorth") on July 1, 2015 and April 1, 2016, respectively. The acquired institutions' financial condition and results of operations are included in the Company's financial condition and results of operations as of the respective acquisition dates.
Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Subsequent Events: The Company has evaluated, for consideration of recognition or disclosure, subsequent events that have occurred through the date of issuance of its financial statements. The Company has determined that no significant events occurred after September 30, 2016 but prior to the issuance of these financial statements that would have a material impact on its Consolidated Financial Statements.
Impact of Recently-Issued Accounting Standards and Pronouncements:
In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 is intended to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows, including (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transactions and (8) separately identifiable cash flows and application of the predominance principle. For public companies, this amendment becomes effective for interim and annual periods beginning after December 15, 2017. The ASU only impacts the presentation of specific items within the Statement of Cash Flows and is not expected to have a material impact to the Company.
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The update will significantly change the way entities recognize impairment on many financial assets by requiring immediate recognition of estimated credit losses expected to occur over the asset's remaining life. The FASB describes this impairment recognition model as the current expected credit loss (“CECL”) model and believes the CECL model will result in more timely recognition of credit losses since the CECL model incorporates expected credit losses versus incurred credit losses. The scope of FASB’s CECL model would include loans, held-to-maturity debt instruments, lease receivables, loan commitments and financial guarantees that are not accounted for at fair value. For public companies, this update becomes effective for interim and annual periods beginning after December 15, 2019. Management is currently evaluating the impact this ASU will have on the Company’s consolidated financial statements and will continue to monitor FASB’s progress on this topic.
In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 is intended to reduce complexity in accounting standards by
simplifying several aspects of the accounting for share-based payment transactions, including (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; and (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax withholding purposes. The amendments of ASU 2016-09 are effective for interim and annual periods beginning after December 15, 2016. Management is currently evaluating the impact this ASU will have on the Company’s consolidated financial statements.
In March 2016, the FASB issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). ASU 2016-07 requires an investor to initially apply the equity method of accounting from the date it qualifies for that method, i.e., the date the investor obtains significant influence over the operating and financial policies of an investee. The ASU eliminates the previous requirement to retroactively adjust the investment and record a cumulative catch up for the periods that the investment had been held but did not qualify for the equity method of accounting. For public companies, the amendments in ASU 2016-07 are effective for interim and annual periods beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Management is currently evaluating the provisions of ASU 2016-07 to determine the potential impact the new standard will have on the Company’s consolidated financial statements.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 amends the accounting model and disclosure requirements for leases. The current accounting model for leases distinguishes between capital leases, which are recognized on-balance sheet, and operating leases, which are not. Under the new standard, the lease classifications are defined as finance leases, which are similar to capital leases under current GAAP, and operating leases. Further, a lessee will recognize a lease liability and a right-of-use asset for all leases with a term greater than 12 months on its balance sheet regardless of the lease’s classification, which may significantly increase reported assets and liabilities. The accounting model and disclosure requirements for lessors remains substantially unchanged from current GAAP. ASU 2016-02 is effective for annual and interim periods in fiscal years beginning after December 15, 2018. Management is currently evaluating the impact ASU 2016-02 will have on the Company's financial position and results of operations.
In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10); Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 revises the accounting for the classification and measurement of investments in equity securities and revises the presentation of certain fair value changes for financial liabilities measured at fair value. For equity securities, the guidance in ASU 2016-01 requires equity investments to be measured at fair value with changes in fair value recognized in net income. For financial liabilities that are measured at fair value in accordance with the fair value option, the guidance requires presenting, in other comprehensive income, the change in fair value that relates to a change in instrument-specific credit risk. ASU 2016-01 also eliminates the disclosure assumptions used to estimate fair value for financial instruments measured at amortized cost and requires disclosure of an exit price notion in determining the fair value of financial instruments measured at amortized cost. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017. Management is currently evaluating the impact ASU 2016-01 will have on the Company's financial position and results of operations.
Note B – Securities
(In Thousands, Except Number of Securities)
The amortized cost and fair value of securities held to maturity were as follows as of the dates presented:
|
| | | | | | | | | | | | | | | |
| Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value |
September 30, 2016 | | | | | | | |
Obligations of other U.S. Government agencies and corporations | $ | 14,100 |
| | $ | 58 |
| | $ | — |
| | $ | 14,158 |
|
Obligations of states and political subdivisions | 348,219 |
| | 19,591 |
| | (18 | ) | | 367,792 |
|
| $ | 362,319 |
| | $ | 19,649 |
| | $ | (18 | ) | | $ | 381,950 |
|
December 31, 2015 | | | | | | | |
Obligations of other U.S. Government agencies and corporations | $ | 101,155 |
| | $ | 26 |
| | $ | (1,214 | ) | | $ | 99,967 |
|
Obligations of states and political subdivisions | 357,245 |
| | 16,636 |
| | (95 | ) | | 373,786 |
|
| $ | 458,400 |
| | $ | 16,662 |
| | $ | (1,309 | ) | | $ | 473,753 |
|
Renasant Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Renasant Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
The amortized cost and fair value of securities available for sale were as follows as of the dates presented:
|
| | | | | | | | | | | | | | | |
| Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value |
September 30, 2016 | | | | | | | |
Obligations of other U.S. Government agencies and corporations | $ | 2,073 |
| | $ | 136 |
| | $ | — |
| | $ | 2,209 |
|
Residential mortgage backed securities: | | | | | | | |
Government agency mortgage backed securities | 403,847 |
| | 8,497 |
| | (144 | ) | | 412,200 |
|
Government agency collateralized mortgage obligations | 168,479 |
| | 2,370 |
| | (559 | ) | | 170,290 |
|
Commercial mortgage backed securities: | | | | | | | |
Government agency mortgage backed securities | 52,828 |
| | 2,093 |
| | (15 | ) | | 54,906 |
|
Government agency collateralized mortgage obligations | 2,541 |
| | 127 |
| | — |
| | 2,668 |
|
Trust preferred securities | 24,628 |
| | — |
| | (6,536 | ) | | 18,092 |
|
Other debt securities | 16,708 |
| | 574 |
| | (9 | ) | | 17,273 |
|
Other equity securities | — |
| | — |
| | — |
| | — |
|
| $ | 671,104 |
| | $ | 13,797 |
| | $ | (7,263 | ) | | $ | 677,638 |
|
|
| | | | | | | | | | | | | | | |
| Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value |
December 31, 2015 | | | | | | | |
Obligations of other U.S. Government agencies and corporations | $ | 6,093 |
| | $ | 126 |
| | $ | (19 | ) | | $ | 6,200 |
|
Residential mortgage backed securities: | | | | | | | |
Government agency mortgage backed securities | 362,669 |
| | 3,649 |
| | (1,778 | ) | | 364,540 |
|
Government agency collateralized mortgage obligations | 168,916 |
| | 1,449 |
| | (2,305 | ) | | 168,060 |
|
Commercial mortgage backed securities: | | | | | | | |
Government agency mortgage backed securities | 58,864 |
| | 1,002 |
| | (107 | ) | | 59,759 |
|
Government agency collateralized mortgage obligations | 4,947 |
| | 158 |
| | (1 | ) | | 5,104 |
|
Trust preferred securities | 24,770 |
| | — |
| | (5,301 | ) | | 19,469 |
|
Other debt securities | 18,899 |
| | 468 |
| | (34 | ) | | 19,333 |
|
Other equity securities | 2,500 |
| | 1,840 |
| | — |
| | 4,340 |
|
| $ | 647,658 |
| | $ | 8,692 |
| | $ | (9,545 | ) | | $ | 646,805 |
|
During the second quarter of 2016, the Company sold an "other equity security" with a carrying value of $2,767 at the time of sale for net proceeds of $4,024 resulting in a gain of $1,257. Additionally, during the first quarter of 2016 the Company sold an "other equity security" with a carrying value of $75 at the time of sale for net proceeds of $4 resulting in a loss of $71. During the second quarter of 2015, the Company sold its pooled trust preferred security XIII with net proceeds of $1,213 and a carrying value of $1,117 at the time of sale for a gain of $96.
Renasant Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Gross realized gains on sales of securities available for sale for the three and nine months ended September 30, 2016 and 2015 were as follows:
|
| | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | September 30, |
| 2016 | | 2015 | | 2016 | | 2015 |
Gross gains on sales of securities available for sale | $ | — |
| | $ | — |
| | $ | 1,257 |
| | $ | 96 |
|
Gross losses on sales of securities available for sale | — |
| | — |
| | (71 | ) | | — |
|
Gains on sales of securities available for sale, net | $ | — |
| | $ | — |
| | $ | 1,186 |
| | $ | 96 |
|
At September 30, 2016 and December 31, 2015, securities with a carrying value of $654,409 and $679,492, respectively, were pledged to secure government, public and trust deposits. Securities with a carrying value of $27,090 and $39,275 were pledged as collateral for short-term borrowings and derivative instruments at September 30, 2016 and December 31, 2015, respectively.
The amortized cost and fair value of securities at September 30, 2016 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.
|
| | | | | | | | | | | | | | | |
| Held to Maturity | | Available for Sale |
| Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value |
Due within one year | $ | 14,414 |
| | $ | 14,515 |
| | $ | — |
| | $ | — |
|
Due after one year through five years | 102,712 |
| | 107,110 |
| | 2,073 |
| | 2,209 |
|
Due after five years through ten years | 132,755 |
| | 140,556 |
| | — |
| | — |
|
Due after ten years | 112,438 |
| | 119,769 |
| | 24,628 |
| | 18,092 |
|
Residential mortgage backed securities: | | | | | | | |
Government agency mortgage backed securities | — |
| | — |
| | 403,847 |
| | 412,200 |
|
Government agency collateralized mortgage obligations | — |
| | — |
| | 168,479 |
| | 170,290 |
|
Commercial mortgage backed securities: | | | | | | | |
Government agency mortgage backed securities | — |
| | — |
| | 52,828 |
| | 54,906 |
|
Government agency collateralized mortgage obligations | — |
| | — |
| | 2,541 |
| | 2,668 |
|
Other debt securities | — |
| | — |
| | 16,708 |
| | 17,273 |
|
Other equity securities | — |
| | — |
| | — |
| | — |
|
| $ | 362,319 |
| | $ | 381,950 |
| | $ | 671,104 |
| | $ | 677,638 |
|
Renasant Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
The following table presents the age of gross unrealized losses and fair value by investment category as of the dates presented:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Less than 12 Months | | 12 Months or More | | Total |
| # | | Fair Value | | Unrealized Losses | | # | | Fair Value | | Unrealized Losses | | # | | Fair Value | | Unrealized Losses |
Held to Maturity: | | | | | | | | | | | | | | | | | |
September 30, 2016 | | | | | | | | | | | | | | | | | |
Obligations of other U.S. Government agencies and corporations | 0 | | $ | — |
| | $ | — |
| | 0 | | $ | — |
| | $ | — |
| | 0 | | $ | — |
| | $ | — |
|
Obligations of states and political subdivisions | 4 | | 2,356 |
| | (18 | ) | | 0 | | — |
| | — |
| | 4 | | 2,356 |
| | (18 | ) |
Total | 4 | | $ | 2,356 |
| | $ | (18 | ) | | 0 | | $ | — |
| | $ | — |
| | 4 | | 2,356 |
| | $ | (18 | ) |
December 31, 2015 | | | | | | | | | | | | | | | | | |
Obligations of other U.S. Government agencies and corporations | 10 | | $ | 31,567 |
| | $ | (414 | ) | | 8 | | $ | 38,688 |
| | $ | (800 | ) | | 18 | | $ | 70,255 |
| | $ | (1,214 | ) |
Obligations of states and political subdivisions | 6 | | 4,815 |
| | (53 | ) | | 7 | | 4,921 |
| | (42 | ) | | 13 | | 9,736 |
| | (95 | ) |
Total | 16 | | $ | 36,382 |
| | $ | (467 | ) | | 15 | | $ | 43,609 |
| | $ | (842 | ) | | 31 | | $ | 79,991 |
| | $ | (1,309 | ) |
Available for Sale: | | | | | | | | | | | | | | | | | |
September 30, 2016 | | | | | | | | | | | | | | | | | |
Obligations of other U.S. Government agencies and corporations | 0 | | $ | — |
| | $ | — |
| | 0 | | $ | — |
| | $ | — |
| | 0 | | $ | — |
| | $ | — |
|
Residential mortgage backed securities: | | | | | | | | | | | | | | | | | |
Government agency mortgage backed securities | 8 | | 26,199 |
| | (64 | ) | | 5 | | 12,716 |
| | (80 | ) | | 13 | | 38,915 |
| | (144 | ) |
Government agency collateralized mortgage obligations | 9 | | 21,994 |
| | (104 | ) | | 13 | | 36,317 |
| | (455 | ) | | 22 | | 58,311 |
| | (559 | ) |
Commercial mortgage backed securities: | | | | | | | | | | | | | | | | | |
Government agency mortgage backed securities | 1 | | 5,078 |
| | (6 | ) | | 2 | | 1,110 |
| | (9 | ) | | 3 | | 6,188 |
| | (15 | ) |
Government agency collateralized mortgage obligations | 0 | | — |
| | — |
| | 0 | | — |
| | — |
| | 0 | | — |
| | — |
|
Trust preferred securities | 0 | | — |
| | — |
| | 3 | | 18,092 |
| | (6,536 | ) | | 3 | | 18,092 |
| | (6,536 | ) |
Other debt securities | 1 | | 1,214 |
| | (3 | ) | | 1 | | 1,337 |
| | (6 | ) | | 2 | | 2,551 |
| | (9 | ) |
Total | 19 | | $ | 54,485 |
| | $ | (177 | ) | | 24 | | $ | 69,572 |
| | $ | (7,086 | ) | | 43 | | $ | 124,057 |
| | $ | (7,263 | ) |
December 31, 2015 | | | | | | | | | | | | | | | | | |
Obligations of other U.S. Government agencies and corporations | 1 | | $ | 3,981 |
| | $ | (19 | ) | | 0 | | $ | — |
| | $ | — |
| | 1 | | $ | 3,981 |
| | $ | (19 | ) |
Residential mortgage backed securities: | | | | | | | | | | | | | | | | | |
Government agency mortgage backed securities | 34 | | 130,306 |
| | (937 | ) | | 9 | | 27,431 |
| | (841 | ) | | 43 | | 157,737 |
| | (1,778 | ) |
Government agency collateralized mortgage obligations | 25 | | 52,128 |
| | (347 | ) | | 16 | | 51,574 |
| | (1,958 | ) | | 41 | | 103,702 |
| | (2,305 | ) |
Commercial mortgage backed securities: | | | | | | | | | | | | | | | | | |
Government agency mortgage backed securities | 8 | | 16,782 |
| | (104 | ) | | 1 | | 814 |
| | (3 | ) | | 9 | | 17,596 |
| | (107 | ) |
Government agency collateralized mortgage obligations | 1 | | 1,882 |
| | (1 | ) | | 0 | | — |
| | — |
| | 1 | | 1,882 |
| | (1 | ) |
Trust preferred securities | 0 | | — |
| | — |
| | 3 | | 19,469 |
| | (5,301 | ) | | 3 | | 19,469 |
| | (5,301 | ) |
Other debt securities | 1 | | 1,316 |
| | (3 | ) | | 2 | | 3,866 |
| | (31 | ) | | 3 | | 5,182 |
| | (34 | ) |
Other equity securities | 0 | | — |
| | — |
| | 0 | | — |
| | — |
| | 0 | | — |
| | — |
|
Total | 70 | | $ | 206,395 |
| | $ | (1,411 | ) | | 31 | | $ | 103,154 |
| | $ | (8,134 | ) | | 101 | | $ | 309,549 |
| | $ | (9,545 | ) |
Renasant Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
The Company evaluates its investment portfolio for other-than-temporary-impairment (“OTTI”) on a quarterly basis. Impairment is assessed at the individual security level. The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. Impairment is considered to be other-than-temporary if the Company intends to sell the investment security or if the Company does not expect to recover the entire amortized cost basis of the security before the Company is required to sell the security or before the security’s maturity.
The Company does not intend to sell any of the securities in an unrealized loss position, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be at maturity. Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period greater than twelve months, the Company has experienced an overall improvement in the fair value of its investment portfolio and, with the exception of one of its pooled trust preferred securities (discussed below), is collecting principal and interest payments from the respective issuers as scheduled. As such, the Company did not record any OTTI for the three or nine months ended September 30, 2016 or 2015.
The Company holds investments in pooled trust preferred securities that had an amortized cost basis of $24,628 and $24,770 and a fair value of $18,092 and $19,469 at September 30, 2016 and December 31, 2015, respectively. At September 30, 2016, the investments in pooled trust preferred securities consisted of three securities representing interests in various tranches of trusts collateralized by debt issued by over 250 financial institutions. Management’s determination of the fair value of each of its holdings in pooled trust preferred securities is based on the current credit ratings, the known deferrals and defaults by the underlying issuing financial institutions and the degree to which future deferrals and defaults would be required to occur before the cash flow for the Company’s tranches is negatively impacted. In addition, management continually monitors key credit quality and capital ratios of the issuing institutions. This determination is further supported by quarterly valuations, which are performed by third parties, of each security obtained by the Company. The Company does not intend to sell the investments before recovery of the investments' amortized cost, and it is not more likely than not that the Company will be required to sell the investments before recovery of the investments’ amortized cost, which may be at maturity. At September 30, 2016, management did not, and does not currently, believe such securities will be settled at a price less than the amortized cost of the investment, but the Company previously concluded that it was probable that there had been an adverse change in estimated cash flows for all three trust preferred securities and recognized credit related impairment losses on these securities in 2010 and 2011. No additional impairment was recognized during the nine months ended September 30, 2016.
The Company's analysis of the pooled trust preferred securities during the second quarter of 2015 supported a return to accrual status for one of the three securities (XXVI). During the second quarter of 2014, the Company's analysis supported a return to accrual status for one of the other securities (XXIII). An observed history of principal and interest payments combined with improved qualitative and quantitative factors described above justified the accrual of interest on these securities. However, the remaining security (XXIV) is still in "payment in kind" status where interest payments are not expected until a future date and, therefore, the qualitative and quantitative factors described above do not justify a return to accrual status at this time. As a result, pooled trust preferred security XXIV remains classified as a nonaccruing asset at September 30, 2016, and investment interest is recorded on the cash-basis method until qualifying for return to accrual status.
The following table provides information regarding the Company’s investments in pooled trust preferred securities at September 30, 2016:
|
| | | | | | | | | | | | | | | | | | | | |
Name | Single/ Pooled | | Class/ Tranche | | Amortized Cost | | Fair Value | | Unrealized Loss | | Lowest Credit Rating | | Issuers Currently in Deferral or Default |
XXIII | Pooled | | B-2 | | $ | 8,337 |
| | $ | 5,495 |
| | $ | (2,842 | ) | | Baa3 | | 17 | % |
XXIV | Pooled | | B-2 | | 12,070 |
| | 9,647 |
| | (2,423 | ) | | Caa2 | | 27 | % |
XXVI | Pooled | | B-2 | | 4,221 |
| | 2,950 |
| | (1,271 | ) | | Ba3 | | 22 | % |
| | | | | $ | 24,628 |
| | $ | 18,092 |
| | $ | (6,536 | ) | | | | |
Renasant Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
The following table provides a summary of the cumulative credit related losses recognized in earnings for which a portion of OTTI has been recognized in other comprehensive income:
|
| | | | | | | |
| 2016 | | 2015 |
Balance at January 1 | $ | (3,337 | ) | | $ | (3,337 | ) |
Additions related to credit losses for which OTTI was not previously recognized | — |
| | — |
|
Increases in credit loss for which OTTI was previously recognized | — |
| | — |
|
Balance at September 30 | $ | (3,337 | ) | | $ | (3,337 | ) |
Note C – Loans and the Allowance for Loan Losses
(In Thousands, Except Number of Loans)
The following is a summary of loans as of the dates presented:
|
| | | | | | | |
| September 30, 2016 | | December 31, 2015 |
Commercial, financial, agricultural | $ | 694,126 |
| | $ | 636,837 |
|
Lease financing | 47,695 |
| | 35,978 |
|
Real estate – construction | 487,638 |
| | 357,665 |
|
Real estate – 1-4 family mortgage | 1,870,644 |
| | 1,735,323 |
|
Real estate – commercial mortgage | 2,895,631 |
| | 2,533,729 |
|
Installment loans to individuals | 111,684 |
| | 115,093 |
|
Gross loans | 6,107,418 |
| | 5,414,625 |
|
Unearned income | (2,185 | ) | | (1,163 | ) |
Loans, net of unearned income | 6,105,233 |
| | 5,413,462 |
|
Allowance for loan losses | (45,924 | ) | | (42,437 | ) |
Net loans | $ | 6,059,309 |
| | $ | 5,371,025 |
|
Past Due and Nonaccrual Loans
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, the recognition of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer and other retail loans are typically charged-off no later than the time the loan is 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Loans may be placed on nonaccrual regardless of whether or not such loans are considered past due. All interest accrued for the current year, but not collected, for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
Renasant Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
The following table provides an aging of past due and nonaccrual loans, segregated by class, as of the dates presented:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Accruing Loans | | Nonaccruing Loans | | |
| 30-89 Days Past Due | | 90 Days or More Past Due | | Current Loans | | Total Loans | | 30-89 Days Past Due | | 90 Days or More Past Due | | Current Loans | | Total Loans | | Total Loans |
September 30, 2016 | | | | | | | | | | | | | | | | | |
Commercial, financial, agricultural | $ | 1,657 |
| | $ | 1,486 |
| | $ | 689,042 |
| | $ | 692,185 |
| | $ | 87 |
| | $ | 1,123 |
| | $ | 731 |
| | $ | 1,941 |
| | $ | 694,126 |
|
Lease financing | — |
| | 342 |
| | 47,353 |
| | 47,695 |
| | — |
| | — |
| | — |
| | — |
| | 47,695 |
|
Real estate – construction | 1,835 |
| | 559 |
| | 485,096 |
| | 487,490 |
| | — |
| | 148 |
| | — |
| | 148 |
| | 487,638 |
|
Real estate – 1-4 family mortgage | 8,124 |
| | 5,059 |
| | 1,847,459 |
| | 1,860,642 |
| | 860 |
| | 3,687 |
| | 5,455 |
| | 10,002 |
| | 1,870,644 |
|
Real estate – commercial mortgage | 10,345 |
| | 8,183 |
| | 2,863,205 |
| | 2,881,733 |
| | 53 |
| | 7,059 |
| | 6,786 |
| | 13,898 |
| | 2,895,631 |
|
Installment loans to individuals | 419 |
| | 92 |
| | 110,975 |
| | 111,486 |
| |
|
| | 64 |
| | 134 |
| | 198 |
| | 111,684 |
|
Unearned income |
|
| |
|
| | (2,185 | ) | | (2,185 | ) | |
|
| |
|
| |
|
| | — |
| | (2,185 | ) |
Total | $ | 22,380 |
| | $ | 15,721 |
| | $ | 6,040,945 |
| | $ | 6,079,046 |
| | $ | 1,000 |
| | $ | 12,081 |
| | $ | 13,106 |
| | $ | 26,187 |
| | $ | 6,105,233 |
|
December 31, 2015 | | | | | | | | | | | | | | | | | |
Commercial, financial, agricultural | $ | 1,296 |
| | $ | 1,077 |
| | $ | 634,037 |
| | $ | 636,410 |
| | $ | 30 |
| | $ | 133 |
| | $ | 264 |
| | $ | 427 |
| | $ | 636,837 |
|
Lease financing | — |
| | — |
| | 35,978 |
| | 35,978 |
| | — |
| | — |
| | — |
| | — |
| | 35,978 |
|
Real estate – construction | 69 |
| | 176 |
| | 357,420 |
| | 357,665 |
| | — |
| | — |
| | — |
| | — |
| | 357,665 |
|
Real estate – 1-4 family mortgage | 9,196 |
| | 6,457 |
| | 1,707,230 |
| | 1,722,883 |
| | 528 |
| | 3,663 |
| | 8,249 |
| | 12,440 |
| | 1,735,323 |
|
Real estate – commercial mortgage | 4,849 |
| | 8,581 |
| | 2,504,192 |
| | 2,517,622 |
| | 568 |
| | 2,263 |
| | 13,276 |
| | 16,107 |
| | 2,533,729 |
|
Installment loans to individuals | 260 |
| | 102 |
| | 114,671 |
| | 115,033 |
| | — |
| | 53 |
| | 7 |
| | 60 |
| | 115,093 |
|
Unearned income | — |
| | — |
| | (1,163 | ) | | (1,163 | ) | | — |
| | — |
| | — |
| | — |
| | (1,163 | ) |
Total | $ | 15,670 |
| | $ | 16,393 |
| | $ | 5,352,365 |
| | $ | 5,384,428 |
| | $ | 1,126 |
| | $ | 6,112 |
| | $ | 21,796 |
| | $ | 29,034 |
| | $ | 5,413,462 |
|
Impaired Loans
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impairment is measured on a loan-by-loan basis for commercial, consumer and construction loans above a minimum dollar amount threshold by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are evaluated collectively for impairment. When the ultimate collectability of an impaired loan’s principal is in doubt, wholly or partially, all cash receipts are applied to principal. Once the recorded balance has been reduced to zero, future cash receipts are applied to interest income, to the extent any interest has been foregone, and then they are recorded as recoveries of any amounts previously charged-off. For impaired loans, a specific reserve is established to adjust the carrying value of the loan to its estimated net realizable value.
Renasant Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Loans accounted for under FASB Accounting Standards Codification Topic (“ASC”) 310-20, “Nonrefundable Fees and Other Cost” (“ASC 310-20”), and which are impaired loans recognized in conformity with ASC 310, “Receivables” (“ASC 310”), segregated by class, were as follows as of the dates presented:
|
| | | | | | | | | | | | | | | | | | | |
| Unpaid Contractual Principal Balance | | Recorded Investment With Allowance | | Recorded Investment With No Allowance | | Total Recorded Investment | | Related Allowance |
September 30, 2016 | | | | | | | | | |
Commercial, financial, agricultural | $ | 2,431 |
| | $ | 2,245 |
| | $ | 135 |
| | $ | 2,380 |
| | $ | 1,004 |
|
Lease financing | — |
| | — |
| | — |
| | — |
| | — |
|
Real estate – construction | 1,042 |
| | 820 |
| | 222 |
| | 1,042 |
| | 2 |
|
Real estate – 1-4 family mortgage | 20,208 |
| | 18,501 |
| | — |
| | 18,501 |
| | 5,144 |
|
Real estate – commercial mortgage | 16,126 |
| | 12,669 |
| | — |
| | 12,669 |
| | 2,635 |
|
Installment loans to individuals | 233 |
| | 231 |
| | — |
| | 231 |
| | 114 |
|
Total | $ | 40,040 |
| | $ | 34,466 |
| | $ | 357 |
| | $ | 34,823 |
| | $ | 8,899 |
|
December 31, 2015 | | | | | | | | | |
Commercial, financial, agricultural | $ | 1,308 |
| | $ | 358 |
| | $ | 12 |
| | $ | 370 |
| | $ | 6 |
|
Lease financing | — |
| | — |
| | — |
| | — |
| | — |
|
Real estate – construction | 2,710 |
| | 2,698 |
| | — |
| | 2,698 |
| | 20 |
|
Real estate – 1-4 family mortgage | 18,193 |
| | 16,650 |
| | — |
| | 16,650 |
| | 4,475 |
|
Real estate – commercial mortgage | 20,169 |
| | 16,819 |
| | — |
| | 16,819 |
| | 3,099 |
|
Installment loans to individuals | 90 |
| | 90 |
| | — |
| | 90 |
| | — |
|
Totals | $ | 42,470 |
| | $ | 36,615 |
| | $ | 12 |
| | $ | 36,627 |
| | $ | 7,600 |
|
The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-20 and which are impaired loans for the periods presented:
|
| | | | | | | | | | | | | | | |
| Three Months Ended | | Three Months Ended |
| September 30, 2016 | | September 30, 2015 |
| Average Recorded Investment | | Interest Income Recognized | | Average Recorded Investment | | Interest Income Recognized |
Commercial, financial, agricultural | $ | 2,387 |
| | $ | 28 |
| | $ | 1,286 |
| | $ | 7 |
|
Lease financing | — |
| | — |
| | — |
| | — |
|
Real estate – construction | 1,010 |
| | 26 |
| | — |
| | — |
|
Real estate – 1-4 family mortgage | 18,914 |
| | 115 |
| | 16,906 |
| | 99 |
|
Real estate – commercial mortgage | 13,425 |
| | 87 |
| | 20,112 |
| | 199 |
|
Installment loans to individuals | 234 |
| | — |
| | 71 |
| | 2 |
|
Total | $ | 35,970 |
| | $ | 256 |
| | $ | 38,375 |
| | $ | 307 |
|
Renasant Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
|
| | | | | | | | | | | | | | | |
| Nine Months Ended | | Nine Months Ended |
| September 30, 2016 | | September 30, 2015 |
| Average Recorded Investment | | Interest Income Recognized | | Average Recorded Investment | | Interest Income Recognized |
Commercial, financial, agricultural | $ | 2,233 |
| | $ | 48 |
| | $ | 1,325 |
| | $ | 21 |
|
Lease financing | — |
| | — |
| | — |
| | — |
|
Real estate – construction | 819 |
| | 28 |
| | — |
| | — |
|
Real estate – 1-4 family mortgage | 19,146 |
| | 309 |
| | 17,192 |
| | 275 |
|
Real estate – commercial mortgage | 14,271 |
| | 294 |
| | 20,864 |
| | 472 |
|
Installment loans to individuals | 239 |
| | 2 |
| | 71 |
| | 2 |
|
Total | $ | 36,708 |
| | $ | 681 |
| | $ | 39,452 |
| | $ | 770 |
|
Loans accounted for under ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”), and which are impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the dates presented:
|
| | | | | | | | | | | | | | | | | | | |
| Unpaid Contractual Principal Balance | | Recorded Investment With Allowance | | Recorded Investment With No Allowance | | Total Recorded Investment | | Related Allowance |
September 30, 2016 | | | | | | | | | |
Commercial, financial, agricultural | $ | 21,678 |
| | $ | 4,729 |
| | $ | 7,765 |
| | $ | 12,494 |
| | $ | 448 |
|
Lease financing | — |
| | — |
| | — |
| | — |
| | — |
|
Real estate – construction | 2,041 |
| | 729 |
| | 993 |
| | 1,722 |
| |
|
|
Real estate – 1-4 family mortgage | 96,394 |
| | 22,308 |
| | 57,924 |
| | 80,232 |
| | 726 |
|
Real estate – commercial mortgage | 248,508 |
| | 84,859 |
| | 116,141 |
| | 201,000 |
| | 2,243 |
|
Installment loans to individuals | 2,814 |
| | 415 |
| | 1,746 |
| | 2,161 |
| | 1 |
|
Total | $ | 371,435 |
| | $ | 113,040 |
| | $ | 184,569 |
| | $ | 297,609 |
| | $ | 3,418 |
|
December 31, 2015 | | | | | | | | | |
Commercial, financial, agricultural | $ | 27,049 |
| | $ | 5,197 |
| | $ | 11,292 |
| | $ | 16,489 |
| |