TUPELO, Miss., Oct. 17, 2006 (PRIMEZONE) -- Renasant Corporation (Nasdaq:RNST) (the "Company") today announced results for the third quarter of 2006. Basic earnings per share for the third quarter of 2006 were $.43, up 5%, and diluted earnings per share were $.42, up 5%, compared to basic earnings per share of $.41 and diluted earnings per share of $.40, respectively, for the third quarter of 2005. Net income for the third quarter of 2006 was $6,632,000, up 5%, or $307,000, from the third quarter of 2005. Prior period per share amounts have been restated for the 3 for 2 stock split issued during the third quarter of 2006.
"We are pleased with our Company's third quarter results as we continue to meet our goals," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "Our Company's success has enabled us to increase our cash dividend and also to effect a 3 for 2 stock split for our shareholders during the third quarter."
Total assets as of September 30, 2006 were approximately $2.5 billion, an increase of 6% from September 30, 2005. Total loans grew 10% to approximately $1.8 billion at the end of the third quarter of 2006 from $1.6 billion at September 30, 2005, while total deposits grew 9% to approximately $2.0 billion during the same period.
During the third quarter of 2006, the Company continued to realize significant loan growth within its tri-state footprint as loans grew by over $32 million, from the end of second quarter 2006 to the end of third quarter 2006.
At the end of the third quarter of 2006, approximately 72% of loans and 60% of deposits are held in what the Company considers to be key growth markets.
Net interest income grew 10% to $21,703,000 for the third quarter of 2006 as compared to $19,739,000 for the third quarter of 2005 while net interest margin increased from 3.94% to 4.02% over the same period. Net interest income for the third quarter of 2006 included $527,000 in interest income associated with certain loans accounted for under AICPA Statement of Position (SOP) 03-3. The additional interest income from these loans increased net interest margin for the third quarter of 2006 by 9 basis points. The Company did not record additional interest income associated with certain loans accounted for under SOP 03-3 during the third quarter of 2005.
"Through high level service and the delivery of quality financial products, we continue to experience strong growth in service charges on deposits, loan fees, and the sale of mortgage loans," stated McGraw.
Noninterest income increased 14% to $11,713,000 for the third quarter of 2006 from $10,244,000 for the same period in 2005. Noninterest income represented 35% of the Company's total revenue for the third quarter of 2006 as compared to 34% for the third quarter of 2005.
Noninterest expense was $23,045,000 for the third quarter of 2006 as compared to $20,564,000 for the third quarter of 2005. Salary and employee benefits were up 11% for the third quarter of 2006 as compared to the same period for 2005. Much of this increase was due to new hires resulting from the addition of new full service banking locations in Oxford, East Memphis and Collierville, the expansion of the Company's mortgage operations, and an increase in incentive and performance benefits.
"During the third quarter of 2006, we expanded our mortgage operation in Birmingham and Montgomery, Alabama and Corinth, Mississippi. These expansions brought 3 offices along with 21 production and support staff employees to Renasant's already strong mortgage lending team to help us maintain as well as grow our mortgage lending market share in the communities we serve," commented McGraw.
The Company's credit quality remained strong during the third quarter of 2006. Annualized net charge-offs as a percentage of average loans were .13% for the third quarter of 2006, as compared to .11% for the third quarter of 2005. Non-performing loans as a percentage of total loans were .46% at September 30, 2006, as compared to .45% at September 30, 2005. The allowance for loan losses as a percentage of loans was 1.10% at September 30, 2006, as compared to 1.15% at September 30, 2005.
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, October 18, 2006, 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 866-825-3209 in the United States and entering the participant passcode 87293949. International participants should dial 617-213-8061 and enter the participant passcode 87293949.
About Renasant Corporation
Renasant Corporation is the parent of Renasant Bank and Renasant Insurance. Renasant Corporation has assets of approximately $2.5 billion and operates 63 banking, mortgage and insurance offices in 38 cities in Mississippi, Tennessee and Alabama.
The Renasant Corporation logo is available at http://www.primezone.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)
2006
-----------------------------------
Third Second First
Quarter Quarter Quarter
Statement of earnings ---------- ---------- ----------
---------------------
Interest income
- taxable equivalent
basis $ 40,916 $ 38,437 $ 36,632
Interest income $ 40,070 $ 37,597 $ 35,817
Interest expense 18,367 16,655 15,309
Net interest income 21,703 20,942 20,508
Provision for
loan losses 900 (360) 1,068
Net interest income
after provision 20,803 21,302 19,440
Service charges on
deposit accounts 4,686 4,527 4,424
Fees and commissions
on loans and deposits 3,662 3,659 3,003
Insurance commissions
and fees 975 868 822
Trust revenue 630 630 630
Gain (loss) on sale
of securities 67 4 21
Gain on sale of
mortgage loans 1,029 674 760
Other 664 671 1,773
Total non-interest
income 11,713 11,033 11,433
Salaries and employee
benefits 13,013 12,301 12,212
Occupancy and
equipment 2,788 2,688 2,786
Data processing 1,122 1,053 982
Amortization of
intangibles 398 414 431
Other 5,724 5,603 5,480
Total non-interest
expense 23,045 22,059 21,891
Income before income
taxes 9,471 10,276 8,982
Income taxes 2,839 3,233 2,481
---------- ---------- ----------
Net income $ 6,632 $ 7,043 $ 6,501
========== ========== ==========
Basic earnings per share $ 0.43 $ 0.45 $ 0.42
Diluted earnings per share 0.42 0.45 0.41
Average basic shares
outstanding 15,529,002 15,513,356 15,480,536
Average diluted shares
outstanding 15,904,213 15,731,567 15,672,631
Common shares outstanding 15,531,611 15,521,611 15,496,004
Cash dividend per
common share $ 0.160 $ 0.153 $ 0.153
Performance ratios
------------------
Return on average
shareholders' equity 10.70% 11.68% 11.00%
Return on average
shareholders' equity,
excluding amortization
expense 11.09% 12.10% 11.44%
Return on average assets 1.05% 1.14% 1.07%
Return on average assets,
excluding amortization
expense 1.08% 1.18% 1.12%
Net interest margin (FTE) 4.02% 3.96% 3.99%
Yield on earning assets (FTE) 7.29% 7.00% 6.86%
Average earning assets
to average assets 88.46% 88.66% 88.16%
Average loans to average deposits 86.76% 84.73% 85.04%
Noninterest income (less
securities gains/losses)
to average assets 1.84% 1.78% 1.88%
Noninterest expense to
average assets 3.63% 3.56% 3.61%
Net overhead ratio 1.80% 1.78% 1.73%
Efficiency ratio (FTE) 67.26% 67.22% 66.83%
2005
----------------------------------------------
Fourth Third Second First
Quarter Quarter Quarter Quarter
Statement of earnings ---------- ---------- ---------- ----------
---------------------
Interest income
- taxable equivalent
basis $ 35,620 $ 33,249 $ 32,718 $ 30,146
Interest income $ 34,777 $ 32,417 $ 31,900 $ 29,295
Interest expense 13,863 12,678 11,445 9,977
Net interest income 20,914 19,739 20,455 19,318
Provision for loan
losses 712 833 848 597
Net interest income
after provision 20,202 18,906 19,607 18,721
Service charges on
deposit accounts 4,377 4,358 4,167 3,874
Fees and commissions
on loans and deposits 2,865 2,853 2,965 2,505
Insurance commissions
and fees 881 955 906 831
Trust revenue 644 613 611 625
Gain (loss) on sale
of securities -- -- (32) 102
Gain on sale of
mortgage loans 673 766 673 693
Other 678 699 661 1,273
Total non-interest
income 10,118 10,244 9,951 9,903
Salaries and employee
benefits 11,438 11,696 11,520 11,459
Occupancy and equipment 2,785 2,220 2,222 2,605
Data processing 1,056 966 962 1,044
Amortization of
intangibles 543 557 571 586
Other 5,735 5,125 5,581 5,269
Total non-interest
expense 21,557 20,564 20,856 20,963
Income before income
taxes 8,763 8,586 8,702 7,661
Income taxes 2,545 2,261 2,495 2,202
---------- ---------- ---------- ----------
Net income $ 6,218 $ 6,325 $ 6,207 $ 5,459
========== ========== ========== ==========
Basic earnings
per share $ 0.40 $ 0.41 $ 0.40 $ 0.35
Diluted earnings
per share 0.40 0.40 0.40 0.35
Average basic
shares outstanding 15,495,607 15,573,273 15,577,024 15,582,937
Average diluted
shares outstanding 15,606,463 15,687,906 15,695,454 15,737,024
Common shares
outstanding 15,466,204 15,557,066 15,574,591 15,589,469
Cash dividend per
common share $ 0.147 $ 0.147 $ 0.147 $ 0.140
Performance ratios
Return on average
shareholders' equity 10.45% 10.57% 10.64% 9.53%
Return on average
shareholders' equity,
excluding amortization
expense 11.01% 11.14% 11.25% 10.16%
Return on average
assets 1.04% 1.07% 1.06% 0.95%
Return on average
assets, excluding
amortization expense 1.09% 1.12% 1.12% 1.01%
Net interest
margin (FTE) 4.11% 3.94% 4.14% 3.99%
Yield on earning
assets (FTE) 6.73% 6.36% 6.36% 5.97%
Average earning assets
to average assets 88.18% 88.06% 88.10% 87.54%
Average loans to
average deposits 88.10% 88.59% 90.54% 90.75%
Noninterest income
(less securities
gains/losses) to
average assets 1.68% 1.73% 1.71% 1.70%
Noninterest expense
to average assets 3.59% 3.47% 3.57% 3.63%
Net overhead ratio 1.90% 1.74% 1.86% 1.94%
Efficiency ratio (FTE) 67.63% 66.73% 66.79% 69.71%
3rd Qtr
2006 - For the Nine Months
3rd Qtr Ended September 30,
2005 --------------------------------
Percent Percent
Statement of earnings Variance 2006 2005 Variance
--------------------- ------ ---------- ---------- --------
Interest income - taxable
equivalent basis 23.06 $ 115,985 $ 96,113 20.68
Interest income 23.61 $ 113,484 $ 93,612 21.23
Interest expense 44.87 50,331 34,100 47.60
------ ---------- ---------- ------
Net interest income 9.95 63,153 59,512 6.12
Provision for loan losses 8.04 1,608 2,278 (29.41)
------ ---------- ---------- ------
Net interest income
after provision 10.03 61,545 57,234 7.53
Service charges on
deposit accounts 7.53 13,637 12,399 9.98
Fees and commissions on
loans and deposits 28.36 10,324 8,323 24.04
Insurance commissions
and fees 2.09 2,665 2,692 (1.00)
Trust revenue 2.77 1,890 1,849 2.22
Gain (loss) on sale
of securities 100.00 92 70 31.43
Gain on sale of
mortgage loans 34.33 2,463 2,132 15.53
Other (5.01) 3,108 2,633 18.04
------ ---------- ---------- ------
Total non-interest income 14.34 34,179 30,098 13.56
Salaries and employee
benefits 11.26 37,526 34,675 8.22
Occupancy and equipment 25.59 8,262 7,047 17.24
Data processing 16.15 3,157 2,972 6.22
Amortization of intangibles (28.55) 1,243 1,714 (27.48)
Other 11.69 16,807 15,975 5.21
------ ---------- ---------- ------
Total non-interest
expense 12.06 66,995 62,383 7.39
Income before income taxes 10.31 28,729 24,949 15.15
Income taxes 25.56 8,553 6,958 22.92
------ ---------- ---------- ------
Net income 4.85 $ 20,176 $ 17,991 12.14
====== ========== ========== ======
Basic earnings per share 4.88 $ 1.30 $ 1.16 12.07
Diluted earnings per share 5.00 1.27 1.15 10.43
Average basic
shares outstanding (0.28) 15,508,589 15,576,609 (0.44)
Average diluted
shares outstanding 1.38 15,841,620 15,688,985 0.97
Common shares outstanding (0.16) 15,531,611 15,557,066 (0.16)
Cash dividend per
common share 9.09 $ 0.467 $ 0.433 7.69
Performance ratios
------------------
Return on average
shareholders' equity 11.08% 10.25%
Return on average
shareholders' equity,
excluding amortization
expense 11.50% 10.85%
Return on average assets 1.08% 1.03%
Return on average assets,
excluding amortization expense 1.13% 1.09%
Net interest margin (FTE) 3.99% 4.02%
Yield on earning assets (FTE) 7.05% 6.24%
Average earning assets to
average assets 88.45% 87.90%
Average loans to average deposits 85.52% 90.27%
Noninterest income (less
securities gains/losses) to
average assets 1.83% 1.71%
Noninterest expense to
average assets 3.60% 3.56%
Net overhead ratio 1.77% 1.85%
Efficiency ratio (FTE) 67.11% 67.73%
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
2006
------------------------------------
Third Second First
Average balances Quarter Quarter Quarter
---------------- ---------- ---------- ----------
Total assets $2,517,189 $2,485,527 $2,456,602
Earning assets 2,226,598 2,203,677 2,165,821
Securities 446,098 448,905 412,670
Loans, net of unearned 1,770,135 1,721,426 1,689,106
Intangibles 98,955 99,359 99,854
Non-interest bearing deposits 269,051 258,886 256,548
Interest bearing deposits 1,732,532 1,733,865 1,689,671
Total deposits 2,001,583 1,992,751 1,946,219
Other borrowings 239,295 225,201 245,093
Shareholders' equity 245,946 241,841 239,771
Asset quality data
------------------
Nonaccrual loans $ 6,264 $ 5,978 $ 2,509
Loans 90 past due or more 1,798 1,745 1,546
---------- ---------- ----------
Non-performing loans 8,062 7,723 4,055
Other real estate
owned and repossessions 3,502 3,697 3,922
---------- ---------- ----------
Non-performing assets $ 11,564 $ 11,420 $ 7,977
========== ========== ==========
Net loan charge-offs
(recoveries) $ 590 $ (877) $ 958
Allowance for loan losses 19,300 18,990 18,473
Non-performing
loans/total loans 0.46% 0.45% 0.24%
Non-performing
assets/total assets 0.46% 0.46% 0.32%
Allowance for loan
losses/total loans 1.10% 1.10% 1.11%
Allowance for loan
losses/non-performing loans 239.39% 245.89% 455.56%
Annualized net loan
charge-offs/average loans 0.13% -0.20% 0.23%
Balances at period end
----------------------
Total assets $2,530,892 $2,503,333 $2,509,220
Earning assets 2,245,428 2,208,320 2,205,706
Securities 438,287 434,567 429,169
Mortgage loans held for sale 32,134 36,519 34,099
Loans, net of unearned 1,761,842 1,729,861 1,664,479
Intangibles 98,760 99,159 99,575
Non-interest bearing deposits $ 257,764 $ 272,686 $ 272,672
Interest bearing deposits 1,727,650 1,710,780 1,759,073
Total deposits 1,985,414 1,983,466 2,031,745
Other borrowings 264,983 252,671 214,054
Shareholders' equity 250,622 241,043 239,418
Market value per common share $ 28.07 $ 26.90 $ 24.63
Book value per common share 16.14 15.53 15.45
Tangible book value
per common share 9.78 9.14 9.02
Shareholders' equity
to assets (actual) 9.90% 9.63% 9.54%
Tangible capital ratio 6.24% 5.90% 5.80%
Leverage ratio 8.93% 8.85% 8.72%
Detail of Loans by Category
---------------------------
Commercial, financial,
agricultural $ 231,361 $ 230,890 $ 206,914
Lease financing 4,617 5,284 6,548
Real estate - construction 234,667 229,969 196,228
Real estate - 1-4 family
mortgages 614,143 593,174 578,931
Real estate - commercial
mortgages 599,314 594,121 595,589
Installment loans to
individuals 77,740 76,423 80,269
---------- ---------- ----------
Loans, net of unearned $1,761,842 $1,729,861 $1,664,479
========== ========== ==========
2005
----------------------------------------------
Fourth Third Second First
Average balances Quarter Quarter Quarter Quarter
---------------- ---------- ---------- ---------- ----------
Total assets $2,382,811 $2,353,914 $2,340,597 $2,339,201
Earning assets 2,101,218 2,072,762 2,062,124 2,047,770
Securities 404,882 408,161 420,463 452,818
Loans, net of unearned 1,661,546 1,640,121 1,611,143 1,576,877
Intangibles 100,657 101,323 101,385 101,453
Non-interest
bearing deposits 244,384 235,611 234,946 229,638
Interest bearing
deposits 1,602,674 1,573,085 1,515,318 1,483,677
Total deposits 1,847,058 1,808,696 1,750,264 1,713,315
Other borrowings 274,922 289,849 333,710 371,855
Shareholders' equity 236,015 237,386 233,908 232,348
Asset quality data
------------------
Nonaccrual loans $ 3,984 $ 3,803 $ 4,157 $ 3,807
Loans 90 past due
or more 2,306 3,398 2,292 3,002
---------- ---------- ---------- ----------
Non-performing loans 6,290 7,201 6,449 6,809
Other real estate
owned and
repossessions 4,299 6,646 7,114 7,232
---------- ---------- ---------- ----------
Non-performing assets $ 10,589 $ 13,847 $ 13,563 $ 14,041
========== ========== ========== ==========
Net loan charge-offs
(recoveries) $ 813 $ 465 $ 780 $ 1,186
Allowance for loan
losses 18,363 18,448 18,080 18,012
Non-performing
loans/total loans 0.38% 0.45% 0.40% 0.43%
Non-performing
assets/total assets 0.44% 0.58% 0.58% 0.61%
Allowance for loan
losses/total loans 1.12% 1.15% 1.14% 1.14%
Allowance for loan
losses/non-performing
loans 291.94% 256.19% 280.35% 264.53%
Annualized net loan
charge-offs/average
loans 0.19% 0.11% 0.19% 0.31%
Balances at period end
----------------------
Total assets $2,397,702 $2,379,793 $2,353,385 $2,320,164
Earning assets 2,105,281 2,073,678 2,075,244 2,041,307
Securities 399,034 400,786 415,193 425,196
Mortgage loans held
for sale 33,496 42,865 32,792 32,623
Loans, net of unearned 1,646,223 1,608,697 1,592,391 1,572,103
Intangibles 100,832 100,766 101,528 101,406
Non-interest bearing
deposits $ 250,270 $ 244,086 $ 233,095 $ 238,651
Interest bearing
deposits 1,618,181 1,574,232 1,531,082 1,502,350
Total deposits 1,868,451 1,818,318 1,764,177 1,741,001
Other borrowings 266,505 299,076 334,952 324,330
Shareholders' equity 235,440 237,211 235,454 230,892
Market value per
common share $ 21.09 $ 21.10 $ 20.51 $ 20.73
Book value per
common share 15.22 15.25 15.12 14.81
Tangible book value
per common share 8.70 8.77 8.60 8.31
Shareholders' equity
to assets (actual) 9.82% 9.97% 10.00% 9.95%
Tangible capital ratio 5.86% 5.99% 5.95% 5.84%
Leverage ratio 8.60% 8.79% 8.67% 8.59%
Detail of Loans
by Category
---------------
Commercial, financial,
agricultural $ 226,203 $ 224,673 $ 228,371 $ 228,305
Lease financing 7,469 8,143 9,576 10,763
Real estate
- construction 169,543 162,694 159,798 159,155
Real estate - 1-4
family mortgages 566,455 558,616 547,307 531,347
Real estate
- commercial
mortgages 597,273 570,849 556,694 537,800
Installment loans
to individuals 79,280 83,722 90,645 104,733
---------- ---------- ---------- ----------
Loans, net of
unearned $1,646,223 $1,608,697 $1,592,391 $1,572,103
========== ========== ========== ==========
3rd Qtr 2006 - For the Nine Months
3rd Qtr Ended September 30,
2005 ---------------------------------
Percent Percent
Average balances Variance 2006 2005 Variance
---------------- -------- ---------- ---------- --------
Total assets 6.94 $2,486,841 $2,344,625 6.07
Earning assets 7.42 2,199,584 2,060,977 6.73
Securities 9.29 436,673 426,984 2.27
Loans, net of unearned 7.93 1,727,189 1,609,675 7.30
Intangibles (2.34) 99,415 101,387 (1.95)
Non-interest bearing
deposits 14.19 261,626 233,420 12.08
Interest bearing deposits 10.14 1,718,653 1,525,390 12.67
Total deposits 10.66 1,980,279 1,758,810 12.59
Other borrowings (17.44) 236,508 331,504 (28.66)
Shareholders' equity 3.61 243,372 234,566 3.75
Asset quality data
Nonaccrual loans 64.71 $ 6,264 $ 3,803 64.71
Loans 90 past due or more (47.09) 1,798 3,398 (47.09)
---------- ----------
Non-performing loans 11.96 8,062 7,201 11.96
Other real estate owned
and repossessions (47.31) 3,502 6,646 (47.31)
---------- ----------
Non-performing assets (16.49) $ 11,564 $ 13,847 (16.49)
========== ==========
Net loan charge-offs
(recoveries) 26.88 $ 671 $ 2,431 (72.40)
Allowance for loan losses 4.62 19,300 18,448 4.62
Non-performing loans/total
loans 0.46% 0.45%
Non-performing assets/total
assets 0.46% 0.58%
Allowance for loan
losses/total loans 1.10% 1.15%
Allowance for loan
losses/non-performing
loans 239.39% 256.19%
Annualized net loan
charge-offs/average loans 0.05% 0.20%
Balances at period end
----------------------
Total assets $2,530,892 $2,379,793 6.35
Earning assets 2,245,428 2,073,678 8.28
Securities 438,287 400,786 9.36
Mortgage loans held for sale 32,134 42,865 (25.03)
Loans, net of unearned 1,761,842 1,608,697 9.52
Intangibles 98,760 100,766 (1.99)
Non-interest bearing
deposits $ 257,764 244,086 5.60
Interest bearing deposits 1,727,650 1,574,232 9.75
Total deposits 1,985,414 1,818,318 9.19
Other borrowings 264,983 299,076 (11.40)
Shareholders' equity 250,622 237,211 5.65
Market value per common
share $ 28.07 $ 21.10 33.03
Book value per common share 16.14 15.25 5.83
Tangible book value per
common share 9.78 8.77 11.48
Shareholders' equity to
assets (actual) 9.90% 9.97%
Tangible capital ratio 6.24% 5.99%
Leverage ratio 8.93% 8.79%
Detail of Loans by Category
---------------------------
Commercial, financial,
agricultural $ 231,361 $ 224,673 2.98
Lease financing 4,617 8,143 (43.30)
Real estate - construction 234,667 162,694 44.24
Real estate - 1-4 family
mortgages 614,143 558,616 9.94
Real estate - commercial
mortgages 599,314 570,849 4.99
Installment loans to
individuals 77,740 83,722 (7.15)
---------- ----------
Loans, net of unearned $1,761,842 $1,608,697 9.52
========== ==========
Share and per share amounts have been restated to reflect the
three-for-two stock split issued August 28, 2006