TUPELO, Miss., April 15, 2008 (PRIME NEWSWIRE) -- Renasant Corporation (Nasdaq:RNST) (the "Company") today announced results for the first quarter of 2008. Net income for the first quarter of 2008 was $8,277,000, up 18.9%, from $6,962,000 for the first quarter of 2007. Basic earnings per share were $0.40, down 11.1%, and diluted earnings per share were $0.39, down 11.4%, compared to basic earnings per share of $0.45 and diluted earnings per share of $0.44 for the first quarter of 2007. The decrease in basic and diluted earnings per share was, in part, attributable to the shares issued in connection with the Capital Bancorp, Inc. acquisition, which was completed on July 1, 2007, and the related equity offering in the second quarter of 2007.
"Our first quarter 2008 financial results reflect our ability to meet the challenges offered in the current economic environment," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "Although the Federal Reserve reduced the federal funds target rate 200 basis points during the first quarter of 2008, we experienced only a slight compression in our core net interest margin. Additionally, our mortgage lending division grew noninterest income on record mortgage loan volume even while mortgage loan originations declined nationally."
Total assets as of March 31, 2008 were $3.7 billion, representing a 2.4% increase from December 31, 2007 and a 34.3% increase since March 31, 2007. Total loans were approximately $2.58 billion at the end of the first quarter of 2008, a slight decrease from $2.59 billion at December 31, 2007 and an increase of 36.6% from $1.89 billion at March 31, 2007. Total deposits grew to $2.63 billion at March 31, 2008, representing a 3.1% increase from December 31, 2007 and a 15.9% increase since March 31, 2007.
Net interest income grew to $27,157,000 for the first quarter of 2008 compared to $20,661,000 for the same period in 2007. Net interest margin was 3.52% for the first quarter of 2008 compared to 3.48% for the fourth quarter of 2007 and 3.67% for the first quarter of 2007. Net interest income for the first quarter of 2008 included approximately $531,000 in interest income from loans accounted for in accordance with AICPA Statement of Position 03-3 which increased net interest margin by 0.07%. Additional interest income from similar loans increased fourth quarter 2007 net interest margin by 0.02% and had no impact on net interest margin in the first quarter of 2007.
Noninterest income increased 9.3% to $13,857,000 for the first quarter of 2008 from $12,677,000 for the first quarter of 2007. Growth in noninterest income occurred primarily in deposit fees and mortgage lending. The Company's mortgage division achieved record income on mortgage production of approximately $191 million for the first quarter of 2008 as compared to approximately $141 million for the first quarter of 2007. Other noninterest income for the first quarter of 2008 included a $409,000 gain related to the redemption of shares as a result of the Visa initial public offering.
Noninterest expense was $26,798,000 for the first quarter of 2008, up 19.1%, compared to $22,501,000 for the first quarter of 2007.
"The increase in noninterest expense during the first quarter of 2008 can be primarily attributed to expenses associated with the addition of Capital's employees and other costs resulting from the integration of Capital's operations," said McGraw.
"We, as with most financial institutions, experienced an increase in nonperforming loans and net charge-offs in the first quarter of 2008. In response, we increased our provision for loan losses during the first quarter of 2008 as compared to previous quarters. Our senior credit officers are closely monitoring all credit relationships so that we can promptly identify problematic loans and mitigate any foreseeable credit issues," said McGraw.
Annualized net charge-offs as a percentage of average loans were .26% for the first quarter of 2008, down from 0.36% for the fourth quarter of 2007 and up from 0.04% for the first quarter of 2007. Non-performing loans as a percentage of total loans were 0.85% at March 31, 2008, as compared to 0.63% at December 31, 2007 and 0.54% at March 31, 2007. The allowance for loan losses as a percentage of loans was 1.06% at March 31, 2008, as compared to 1.02% at December 31, 2007 and 1.06% at March 31, 2007. The Company recorded a provision for loan losses of $2,625,000 for the first quarter of 2008 as compared to $1,975,000 for the fourth quarter of 2007 and $750,000 for the first quarter of 2007.
"We have implemented strategies to proactively manage the challenges presented by the current economic conditions. Through active and responsive asset and liability management, continued inspection of each construction and land development loan, and by carrying out measures to control noninterest expense, we believe we are positioned to react to today's ever-challenging economic environment," stated McGraw.
CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 a.m. Eastern time on Wednesday, April 16, 2008, through the Company's website: www.renasant.com, and through Thompson/CCBN's individual investor center at www.fulldisclosure.com, or any of Thompson/CCBN's Investor Distribution Network websites. The event will be archived on the Company's website for 90 days. If Internet access is unavailable, the conference may also be heard live (listen-only) via telephone by dialing 888-873-4896 in the United States and entering the participant passcode 55383206. International participants should dial 617-213-8850 and enter the participant passcode 55383206.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank and Renasant Insurance. Renasant has assets of approximately $3.7 billion and operates 67 banking, mortgage and insurance offices in 41 cities in Mississippi, Tennessee and Alabama.
The Renasant Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=2567
NOTE TO INVESTORS:
This news release may contain, or incorporate by reference, statements which may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking statements usually include words such as "expects," "projects," "anticipates," "believes," "intends," "estimates," "strategy," "plan," "potential," "possible" and other similar expressions.
Prospective investors are cautioned that any such forward-looking statements are not guarantees for future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include significant fluctuations in interest rates, inflation, economic recession, significant changes in the federal and state legal and regulatory environment, significant underperformance in our portfolio of outstanding loans, and competition in our markets. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
2008 2007
----------- ------------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
----------- ------------ ----------- ----------- -----------
Statement
of
earnings
---------
Interest
income
- tax-
able
equiv-
alent
basis $ 54,324 $ 57,339 $ 57,571 $ 44,399 $ 42,534
Interest
income $ 53,383 $ 56,316 $ 56,636 $ 43,541 $ 41,710
Interest
expense 26,226 29,373 29,938 22,022 21,049
----------- ------------ ----------- ----------- -----------
Net
int-
erest
income 27,157 26,943 26,698 21,519 20,661
Pro-
vision
for
loan
losses 2,625 1,975 1,313 800 750
----------- ------------ ----------- ----------- -----------
Net
int-
erest
income
after
pro-
vision 24,532 24,968 25,385 20,719 19,911
Service
charges
on
deposit
accounts 5,433 5,526 5,239 4,919 4,844
Fees and
commi-
ssions
on loans
and
deposits 3,765 3,834 4,104 4,060 3,728
Insurance
commi-
ssions
and
fees 857 891 930 918 810
Trust
revenue 626 806 806 680 567
Gain
(loss)
on sale
of
secur-
ities -- -- -- (1) 79
Gain on
sale of
mortgage
loans 1,521 1,291 1,201 1,225 1,146
Other 1,655 849 1,166 1,066 1,503
----------- ------------ ----------- ----------- -----------
Total
non-
int-
erest
income 13,857 13,197 13,446 12,867 12,677
Salaries
and
emp-
loyee
bene-
fits 14,718 13,970 15,010 13,083 12,927
Occu-
pancy
and
equip-
ment 3,373 3,371 3,269 2,836 2,731
Data
pro-
cessing 1,307 993 1,425 1,265 1,202
Amort-
ization
of
intang-
ibles 584 596 610 391 394
Other 6,816 6,513 6,375 5,792 5,247
----------- ------------ ----------- ----------- -----------
Total
non-
int-
erest
expense 26,798 25,443 26,689 23,367 22,501
Income
before
income
taxes 11,591 12,722 12,142 10,219 10,087
Income
taxes 3,314 3,967 3,845 3,132 3,125
----------- ------------ ----------- ----------- -----------
Net
in-
come $ 8,277 $ 8,755 $ 8,297 $ 7,087 $ 6,962
=========== ============ =========== =========== ===========
Basic
earn-
ings
per
share $ 0.40 $ 0.42 $ 0.39 $ 0.42 $ 0.45
Diluted
earn-
ings
per
share 0.39 0.41 0.39 0.41 0.44
Average
basic
shares
out-
stand-
ing 20,878,478 20,953,099 21,096,156 17,029,781 15,554,515
Average
diluted
shares
out-
stand-
ing 21,133,235 21,297,082 21,437,848 17,292,914 15,865,906
Common
shares
out-
stand-
ing 20,930,871 20,841,365 20,983,501 18,356,974 15,560,006
Cash
div-
idend
per
common
share $ 0.170 $ 0.170 $ 0.170 $ 0.160 $ 0.160
Perform-
ance
ratios
--------
Return
on
average
share-
holders'
equity 8.21% 8.74% 8.45% 9.77% 11.05%
Return
on
average
share-
holders'
equity,
exclud-
ing
amort-
ization
expense 8.57% 9.10% 8.83% 10.07% 11.44%
Return
on
average
assets 0.92% 0.96% 0.94% 1.04% 1.06%
Return
on
average
assets,
exclud-
ing
amort-
ization
expense 0.96% 1.00% 0.98% 1.07% 1.10%
Net
int-
erest
margin
(FTE) 3.52% 3.48% 3.52% 3.66% 3.67%
Yield on
earning
assets
(FTE) 6.81% 7.14% 7.32% 7.25% 7.27%
Average
earning
assets
to
average
assets 88.44% 88.41% 88.71% 89.74% 89.13%
Average
loans
to
average
deposits 99.90% 99.91% 94.02% 87.00% 86.12%
Non-
int-
erest
income
(less
secur-
ities
gains/
losses)
to
average
assets 1.54% 1.45% 1.52% 1.89% 1.92%
Non-
int-
erest
expense
to
average
assets 2.97% 2.80% 3.01% 3.43% 3.43%
Net
over-
head
ratio 1.43% 1.35% 1.49% 1.54% 1.51%
Effic-
iency
ratio
(FTE) 63.87% 61.81% 64.97% 66.30% 65.87%
2008 2007
----------- -----------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
----------- ----------- ----------- ----------- -----------
Average
balances
---------
Total
assets $ 3,629,623 $ 3,605,684 $ 3,515,669 $ 2,735,556 $ 2,663,515
Earning
assets 3,210,112 3,187,663 3,118,727 2,454,953 2,373,908
Secur-
ities 555,174 542,235 548,612 476,742 444,420
Loans,
net of
un-
earned 2,631,101 2,630,255 2,557,185 1,954,517 1,885,122
Intang-
ibles 197,036 196,718 194,743 97,697 98,094
Non-
int-
erest
bearing
dep-
osits 293,528 300,782 298,278 257,273 258,071
Interest
bearing
dep-
osits 2,301,291 2,302,862 2,389,220 1,951,730 1,899,474
Total
dep-
osits 2,594,819 2,603,644 2,687,498 2,209,003 2,157,545
Other
borrow-
ings 587,957 547,946 385,589 201,743 212,762
Share-
holders'
equity 405,355 397,516 389,621 291,864 255,470
Asset
quality
data
--------
Non-
accrual
loans $ 16,090 $ 14,231 $ 12,657 $ 5,905 $ 6,368
Loans 90
past
due or
more 5,888 2,046 2,125 1,648 3,913
----------- ----------- ----------- ----------- -----------
Non-
per-
forming
loans 21,978 16,277 14,782 7,553 10,281
Other
real
estate
owned
and
repo-
ssess-
ions 12,802 8,584 3,168 2,309 2,897
----------- ----------- ----------- ----------- -----------
Non-
per-
forming
assets $ 34,780 $ 24,861 $ 17,950 $ 9,862 $ 13,178
=========== =========== =========== =========== ===========
Net loan
charge-
offs
(recov-
eries) $ 1,726 $ 2,397 $ 377 $ 277 $ 202
Allow-
ance
for
loan
losses 27,271 26,372 26,926 20,605 20,082
Non-
per-
forming
loans /
total
loans 0.85% 0.63% 0.57% 0.38% 0.54%
Non-
per-
forming
assets /
total
assets 0.94% 0.69% 0.50% 0.35% 0.48%
Allowance
for
loan
losses /
total
loans 1.06% 1.02% 1.04% 1.04% 1.06%
Allowance
for
loan
losses /
non-
per-
forming
loans 124.08% 162.02% 182.15% 272.81% 195.33%
Annualized
net loan
charge
-offs /
average
loans 0.26% 0.36% 0.06% 0.06% 0.04%
Balances
at
period
end
--------
Total
assets $ 3,699,276 $ 3,612,287 $ 3,584,519 $ 2,791,295 $ 2,754,930
Earning
assets 3,267,329 3,179,153 3,168,182 2,494,569 2,460,185
Secur-
ities 636,338 539,590 543,017 460,606 462,588
Mortgage
loans
held
for
sale 33,062 37,468 25,911 38,048 29,098
Loans,
net of
un-
earned 2,580,911 2,586,693 2,588,563 1,977,941 1,889,799
Intang-
ibles 196,264 197,314 196,643 97,286 97,902
Non-
int-
erest
bearing
dep-
osits $ 304,171 $ 299,394 $ 315,813 $ 274,336 $ 273,726
Interest
bearing
dep-
osits 2,322,471 2,248,427 2,348,064 1,949,018 1,991,620
Total
dep-
osits 2,626,642 2,547,821 2,663,877 2,223,354 2,265,346
Other
borrow-
ings 623,906 624,388 483,988 218,045 200,764
Share-
holders'
equity 409,827 399,073 392,312 316,634 258,566
Market
value
per
common
share $ 22.50 $ 21.57 $ 21.63 $ 22.74 $ 24.68
Book
value
per
common
share 19.58 19.15 18.70 17.25 16.62
Tangible
book
value
per
common
share 10.20 9.68 9.32 11.95 10.33
Share-
holders'
equity
to
assets
(actual) 11.08% 11.05% 10.94% 11.34% 9.39%
Tangible
capital
ratio 6.10% 5.91% 5.78% 8.14% 6.05%
Leverage
ratio 8.23% 8.09% 8.26% 11.02% 8.85%
Detail
of Loans
by
Category
---------
Commer-
cial,
finan-
cial,
agri-
cult-
ural $ 310,497 $ 317,866 $ 336,157 $ 265,062 $ 243,274
Lease
finan-
cing 2,304 2,557 2,906 3,409 3,833
Real
estate
- con-
struc-
tion 385,957 386,184 401,652 247,241 231,311
Real
estate
- 1-4
family
mort-
gages 846,626 850,658 841,266 669,557 654,604
Real
estate
- com-
mercial
mort-
gages 954,131 948,322 925,001 715,408 676,015
Install-
ment
loans
to ind-
ividuals 81,396 81,006 81,581 77,264 80,762
----------- ----------- ----------- ----------- -----------
Loans,
net of
un-
earn-
ed $ 2,580,911 $ 2,586,593 $ 2,588,563 $ 1,977,941 $ 1,889,799
=========== =========== =========== =========== ===========
*Percent variance not meaningful
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
For the Three Months
Q1 2008 - Ended March 31,
Q1 2007 -------------------------------------
Percent Percent
Variance 2008 2007 Variance
------------ ------------ ----------- ------------
Statement of
earnings
------------
Interest income -
taxable equivalent
basis 27.72 $ 54,324 $ 42,534 27.72
Interest income 27.99 $ 53,383 $ 41,710 27.99
Interest expense 24.59 26,226 21,049 24.59
------------ ------------ ----------- ------------
Net interest
income 31.44 27,157 20,661 31.44
Provision for
loan losses 250.00 2,625 750 250.00
------------ ------------ ----------- ------------
Net interest
income after
provision 23.21 24,532 19,911 23.21
Service charges on
deposit accounts 12.16 5,433 4,844 12.16
Fees and
commissions on
loans and deposits 0.99 3,765 3,728 0.99
Insurance
commissions
and fees 5.80 857 810 5.80
Trust revenue 10.41 626 567 10.41
Gain (loss)
on sale of
securities (100.00) -- 79 (100.00)
Gain on sale of
mortgage loans 32.72 1,521 1,146 32.72
Other 10.11 1,655 1,503 10.11
------------ ------------ ----------- ------------
Total
non-interest
income 9.31 13,857 12,677 9.31
Salaries and
employee benefits 13.85 14,718 12,927 13.85
Occupancy and
equipment 23.51 3,373 2,731 23.51
Data processing 8.74 1,307 1,202 8.74
Amortization of
intangibles 48.22 584 394 48.22
Other 29.90 6,816 5,247 29.90
------------ ------------ ----------- ------------
Total
non-interest
expense 19.10 26,798 22,501 19.10
Income before
income taxes 14.91 11,591 10,087 14.91
Income taxes 6.05 3,314 3,125 6.05
------------ ------------ ----------- ------------
Net income 18.89 $ 8,277 $ 6,962 18.89
============ ============ =========== ============
Basic earnings
per share (11.11)$ 0.40 $ 0.45 (11.11)
Diluted earnings
per share (11.36) 0.39 0.44 (11.36)
Average basic
shares
outstanding 34.23 20,878,478 15,554,515 34.23
Average diluted
shares
outstanding 33.20 21,133,235 15,865,906 33.20
Common shares
outstanding 34.52 20,930,871 15,560,006 34.52
Cash dividend
per common share 6.25 $ 0.170 $ 0.160 6.25
Performance ratios
------------------
Return on average
shareholders'
equity 8.21% 11.05%
Return on average
shareholders'
equity, excluding
amortization
expense 8.57% 11.44%
Return on average
assets 0.92% 1.06%
Return on average
assets, excluding
amortization
expense 0.96% 1.10%
Net interest
margin (FTE) 3.52% 3.67%
Yield on earning
assets (FTE) 6.81% 7.27%
Average
earning assets
to average assets 88.44% 89.13%
Average loans
to average
deposits 99.90% 86.12%
Noninterest income
(less securities
gains/losses) to
average assets 1.54% 1.92%
Noninterest expense
to average assets 2.97% 3.43%
Net overhead ratio 1.43% 1.51%
Efficiency ratio
(FTE) 63.87% 65.87%
For the Three Months
Q1 2008 - Ended March 31,
Q1 2007 -------------------------------------
Percent Percent
Variance 2008 2007 Variance
------------ ------------ ----------- ------------
Average balances
----------------
Total assets 36.27 $ 3,629,623 $ 2,663,515 36.27
Earning assets 35.22 3,210,112 2,373,908 35.22
Securities 24.92 555,174 444,420 24.92
Loans, net
of unearned 39.57 2,631,101 1,885,122 39.57
Intangibles 100.86 197,036 98,094 100.86
Non-interest
bearing deposits 13.74 293,528 258,071 13.74
Interest bearing
deposits 21.15 2,301,291 1,899,474 21.15
Total deposits 20.27 2,594,819 2,157,545 20.27
Other borrowings 176.34 587,957 212,762 176.34
Shareholders'
equity 58.67 405,355 255,470 58.67
Asset quality data
------------------
Nonaccrual loans 152.67 $ 16,090 $ 6,368 152.67
Loans 90 past
due or more 50.47 5,888 3,913 50.47
------------ -----------
Non-performing
loans 113.77 21,978 10,281 113.77
Other real estate
owned and
repossessions 341.91 12,802 2,897 341.91
------------ -----------
Non-performing
assets 163.92 $ 34,780 $ 13,178 163.92
============ ===========
Net loan
charge-offs
(recoveries) 754.46 $ 1,726 $ 202 754.46
Allowance for
loan losses 35.80 27,271 20,082 35.80
Non-performing
loans / total
loans 0.85% 0.54%
Non-performing
assets / total
assets 0.94% 0.48%
Allowance for loan
losses / total
loans 1.06% 1.06%
Allowance for loan
losses /
non-performing
loans 124.08% 195.33%
Annualized net
loan charge-offs /
average loans 0.26% 0.04%
Balances at
period end
-----------
Total assets $ 3,699,276 $ 2,754,930 34.28
Earning assets 3,267,329 2,460,185 32.81
Securities 636,338 462,588 37.56
Mortgage loans
held for sale 33,062 29,098 13.62
Loans, net of
unearned 2,580,911 1,889,799 36.57
Intangibles 196,264 97,902 100.47
Non-interest
bearing deposits $ 304,171 $ 273,726 11.12
Interest bearing
deposits 2,322,471 1,991,620 16.61
Total deposits 2,626,642 2,265,346 15.95
Other borrowings 623,906 200,764 210.77
Shareholders'
equity 409,827 258,566 58.50
Market value
per common share $ 22.50 $ 24.68 (8.83)
Book value
per common share 19.58 16.62 17.83
Tangible book
value per
common share 10.20 10.33 (1.18)
Shareholders'
equity to assets
(actual) 11.08% 9.39%
Tangible
capital ratio 6.10% 6.05%
Leverage ratio 8.23% 8.85%
Detail of Loans
by Category
---------------
Commercial,
financial,
agricultural $ 310,497 $ 243,274 27.63
Lease financing 2,304 3,833 (39.89)
Real estate -
construction 385,957 231,311 66.86
Real estate -
1-4 family
mortgages 846,626 654,604 29.33
Real estate -
commercial
mortgages 954,131 676,015 41.14
Installment loans
to individuals 81,396 80,762 0.79
------------ -----------
Loans, net
of unearned $ 2,580,911 $ 1,889,799 36.57
============ ===========
*Percent variance not meaningful