TUPELO, Miss., April 18, 2006 (PRIMEZONE) -- Renasant Corporation (Nasdaq:RNST) (the "Company") today announced results for the first quarter of 2006. Basic earnings per share were $.63, up 21%, and diluted earnings per share were $.62, up 19%, compared to basic and diluted earnings per share of $.52 for the first quarter of 2005. Net income for the first quarter of 2006 was $6,501,000, up 19%, or $1,042,000, from the first quarter of 2005.
"We are pleased to begin 2006 with a strong first quarter performance," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "Consistent with our strategic goals, we grew both first quarter diluted earnings per share and net income by 19% while credit quality remained strong as we continued to experience a low level of charge offs and non-performing loans. Non interest income in 2006 has shown solid growth as compared to the same period in 2005 while net interest margin has remained relatively steady. We are particularly pleased to see several of our key growth initiatives being met and we anticipate another successful year in 2006."
Total assets as of March 31, 2006 were $2.5 billion, an increase of 8% from March 31, 2005. Total loans grew 6% to approximately $1.7 billion at the end of the first quarter of 2006 from $1.6 billion at March 31, 2005, while total deposits grew 17% to $2.0 billion during the same period.
"During the first quarter of 2006, we realized significant growth in deposits and solid growth in loans within our tri-state footprint. It is important to note that approximately 71% of our loans and 60% of our deposits are now held in what we consider to be our key growth markets," stated McGraw.
Net interest income grew 6% to $20,508,000 for the first quarter of 2006 compared to $19,318,000 for the same period in 2005 due to loan growth and excess funds held in short-term investments. Net interest margin remained flat at 3.99% for the first quarter of 2006 compared to the first quarter of 2005.
Noninterest income increased 15% to $11,433,000 for the first quarter of 2006 from $9,903,000 for the first quarter of 2005 primarily due to increases in service charges on deposit accounts, loan fees, and commissions on investment products. Other noninterest income for the first quarter of 2006 included a $558,000 gain recognized on the early extinguishment of long-term debt and a $397,000 nontaxable death benefit from life insurance. In comparison, other noninterest income for the first quarter of 2005 included $264,000 from the sale of our Pulse network to Discover.
Noninterest expense was $21,891,000 for the first quarter of 2006 as compared to $20,963,000 for the first quarter of 2005. During the first quarter of 2006 and 2005, the Company recorded $338,000 and $170,000, respectively, related to the expensing of stock based compensation.
"We experienced an increase in noninterest expense mainly due to the opening and operation of three additional full service banking locations since the same period in 2005. In the first quarter of 2006, we opened a full service banking office in Collierville, Tennessee which expanded our presence in the growth market of Memphis. Adding to our growth since the first quarter of 2005, we have opened our Tennessee Headquarters location in East Memphis and a full service banking office in Oxford, Mississippi. Our expansion plans call for additional full service banking locations in the growth markets of Nashville, Tennessee, and Huntsville and Birmingham, Alabama. In addition, we have purchased property on the historic square in Oxford, Mississippi and we expect to open our second Oxford location later this year," said McGraw.
The Company's credit quality improved during the first quarter of 2006. Annualized net charge-offs as a percentage of average loans were .23% for the first quarter of 2006, down from .31% for the first quarter of 2005. Non-performing loans as a percentage of total loans were .24% at March 31, 2006, as compared to .43% at March 31, 2005. The allowance for loan losses as a percentage of loans was 1.11% at March 31, 2006, as compared to 1.14% at March 31, 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, April 19, 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 800-798-2801 in the United States and entering the participant passcode 29390820. International participants should dial 617-614-6205 and enter the participant passcode 29390820.
About Renasant Corporation
Renasant Corporation is the parent of Renasant Bank and Renasant Insurance. Renasant has assets of approximately $2.5 billion and operates 61 banking and insurance offices in 38 cities in Mississippi, Tennessee and Alabama.
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)
Statement of earnings
---------------------
2006 2005
---------- -----------------------------------------------
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
---------- ---------- ---------- ---------- ----------
Interest
income
- taxable
equivalent
basis $ 36,632 $ 35,620 $ 33,249 $ 32,718 $ 30,146
Interest
income $ 35,817 $ 34,777 $ 32,417 $ 31,900 $ 29,295
Interest
expense 15,309 13,863 12,678 11,445 9,977
---------- ---------- ---------- ---------- ----------
Net
interest
income 20,508 20,914 19,739 20,455 19,318
Provision
for loan
losses 1,068 712 833 848 597
---------- ---------- ---------- ---------- ----------
Net
interest
income
after
pro-
vision 19,440 20,202 18,906 19,607 18,721
Service
charges on
deposit
accounts 4,424 4,377 4,358 4,167 3,874
Fees and
commissions
on loans
and de-
posits 3,003 2,865 2,853 2,965 2,505
Insurance
commissions
and fees 822 881 955 906 831
Trust
revenue 630 644 613 611 625
Gain (loss)
on sale of
securities 21 -- -- (32) 102
Gain on
sale of
mortgage
loans 760 673 766 673 693
Other 1,773 678 699 661 1,273
---------- ---------- ---------- ---------- ----------
Total
non-
interest
income 11,433 10,118 10,244 9,951 9,903
Salaries
and
employee
benefits 12,212 11,438 11,696 11,520 11,459
Occupancy
and equip-
ment 2,786 2,785 2,220 2,222 2,605
Data
processing 1,080 1,056 966 962 1,044
Amortiza-
tion of
intangibles 431 543 557 571 586
Other 5,382 5,735 5,125 5,581 5,269
---------- ---------- ---------- ---------- ----------
Total non-
interest
expense 21,891 21,557 20,564 20,856 20,963
Income
before
income
taxes 8,982 8,763 8,586 8,702 7,661
Income
taxes 2,481 2,545 2,261 2,495 2,202
---------- ---------- ---------- ---------- ----------
Net
income $ 6,501 $ 6,218 $ 6,325 $ 6,207 $ 5,459
========== ========== ========== ========== ==========
Basic
earnings
per
share $ 0.63 $ 0.60 $ 0.61 $ 0.59 $ 0.52
Diluted
earnings
per share 0.62 0.60 0.60 0.58 0.52
Average
basic
shares
out-
standing 10,303,842 10,318,913 10,396,579 10,400,330 10,406,243
Average
diluted
shares
out-
standing 10,495,937 10,429,769 10,511,212 10,518,760 10,560,330
Common
shares
out-
standing 10,319,310 10,289,510 10,380,372 10,397,897 10,412,775
Cash
dividend
per common
share $ 0.23 $ 0.22 $ 0.22 $ 0.22 $ 0.21
Performance
ratios
-----------
Return on
average
share-
holders'
equity 11.00% 10.45% 10.57% 10.64% 9.53%
Return on
average
share-
holders'
equity, ex-
cluding
amortization
expense 11.44% 11.01% 11.14% 11.25% 10.16%
Return on
average
assets 1.07% 1.04% 1.07% 1.06% 0.95%
Return on
average
assets, ex-
cluding
amortization
expense 1.12% 1.09% 1.12% 1.12% 1.01%
Net
interest
margin (FTE) 3.99% 4.11% 3.94% 4.14% 3.99%
Yield on
earning
assets (FTE) 6.86% 6.73% 6.36% 6.36% 5.97%
Average
earning
assets to
average
assets 88.16% 88.18% 88.06% 88.10% 87.54%
Average
loans to
average
deposits 85.04% 88.10% 88.59% 90.54% 90.75%
Noninterest
income
(less
securities
gains/
losses) to
average
assets 1.88% 1.68% 1.73% 1.71% 1.70%
Noninterest
expense to
average
assets 3.61% 3.59% 3.47% 3.57% 3.63%
Net over-
head ratio 1.73% 1.90% 1.74% 1.86% 1.94%
Efficiency
ratio (FTE) 66.83% 67.63% 66.73% 66.79% 69.71%
1st Qtr
2006 - For the Three Months
1st Qtr Ended March 31,
2005 ----------------------------------
Percent Percent
Variance 2006 2005 Variance
-------- ---------- ---------- --------
Interest income -
taxable equivalent
basis 21.52 $ 36,632 $ 30,146 21.52
Interest income 22.26 $ 35,817 $ 29,295 22.26
Interest expense 53.44 15,309 9,977 53.44
----- ---------- ---------- -----
Net interest income 6.16 20,508 19,318 6.16
Provision for
loan losses 78.89 1,068 597 78.89
----- ---------- ---------- -----
Net interest income
after provision 3.84 19,440 18,721 3.84
Service charges on
deposit accounts 14.20 4,424 3,874 14.20
Fees and commissions
on loans and
deposits 19.88 3,003 2,505 19.88
Insurance commissions
and fees (1.08) 822 831 (1.08)
Trust revenue 0.80 630 625 0.80
Gain (loss) on sale
of securities (79.41) 21 102 (79.41)
Gain on sale of
mortgage loans 9.67 760 693 9.67
Other 39.28 1,773 1,273 39.28
----- ---------- ---------- -----
Total non-interest
income 15.45 11,433 9,903 15.45
Salaries and
employee benefits 6.57 12,212 11,459 6.57
Occupancy and
equipment 6.95 2,786 2,605 6.95
Data processing 3.45 1,080 1,044 3.45
Amortization of
intangibles (26.45) 431 586 (26.45)
Other 2.14 5,382 5,269 2.14
----- ---------- ---------- -----
Total non-interest
expense 4.43 21,891 20,963 4.43
Income before
income taxes 17.24 8,982 7,661 17.24
Income taxes 12.67 2,481 2,202 12.67
----- ---------- ---------- -----
Net income 19.09 $ 6,501 $ 5,459 19.09
===== ========== ========== =====
Basic earnings
per share 21.15 $ 0.63 $ 0.52 21.15
Diluted earnings
per share 19.23 0.62 0.52 19.23
Average basic
shares
outstanding (0.98) 10,303,842 10,406,243 (0.98)
Average diluted
shares
outstanding (0.61) 10,495,937 10,560,330 (0.61)
Common shares
outstanding (0.90) 10,319,310 10,412,775 (0.90)
Cash dividend per
common share 9.52 $ 0.23 $ 0.21 9.52
Performance ratios
Return on average
shareholders'
equity 11.00% 9.53%
Return on average
shareholders'
equity, excluding
amortization expense 11.44% 10.16%
Return on average
assets 1.07% 0.95%
Return on average
assets, excluding
amortization expense 1.12% 1.01%
Net interest
margin (FTE) 3.99% 3.99%
Yield on earning
assets (FTE) 6.86% 5.97%
Average earning
assets to average
assets 88.16% 87.54%
Average loans to
average deposits 85.04% 90.75%
Noninterest income
(less securities
gains/losses) to
average assets 1.88% 1.70%
Noninterest expense
to average assets 3.61% 3.63%
Net overhead ratio 1.73% 1.94%
Efficiency
ratio (FTE) 66.83% 69.71%
RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
2006 2005
---------- ----------------------------------------------
Average First Fourth Third Second First
balances Quarter Quarter Quarter Quarter Quarter
--------- ---------- ---------- ---------- ---------- ----------
Total
assets $2,456,602 $2,382,811 $2,353,914 $2,340,597 $2,339,201
Earning
assets 2,165,821 2,101,218 2,072,762 2,062,124 2,047,770
Securities 412,670 404,882 408,161 420,463 452,818
Loans, net
of
unearned 1,689,106 1,661,546 1,640,121 1,611,143 1,576,877
Intangibles 99,854 100,657 101,323 101,385 101,453
Non-interest
bearing
deposits 256,548 244,384 235,611 234,946 229,638
Interest
bearing
deposits 1,689,671 1,602,674 1,573,085 1,515,318 1,483,677
Total
de-
posits 1,946,219 1,847,058 1,808,696 1,750,264 1,713,315
Other
borrowings 245,093 274,922 289,849 333,710 371,855
Shareholders'
equity 239,771 236,015 237,386 233,908 232,348
Asset quality
data
----------
Nonaccrual
loans $ 2,509 $ 3,984 $ 3,803 $ 4,157 $ 3,807
Loans 90
past due
or more 1,546 2,306 3,398 2,292 3,002
---------- ---------- ---------- ---------- ----------
Non-
performing
loans 4,055 6,290 7,201 6,449 6,809
Other real
estate
owned and
repos-
sessions 3,922 4,299 6,646 7,114 7,232
---------- ---------- ---------- ---------- ----------
Non-
performing
assets $ 7,977 $ 10,589 $ 13,847 $ 13,563 $ 14,041
========== ========== ========== ========== ==========
Net loan
charge-
offs $ 958 $ 813 $ 465 $ 780 $ 1,186
Allowance
for loan
losses 18,473 18,363 18,448 18,080 18,012
Non-
performing
loans/
total loans 0.24% 0.38% 0.45% 0.40% 0.43%
Non-
performing
assets/
total assets 0.32% 0.44% 0.58% 0.58% 0.61%
Allowance
for loan
losses/
total loans 1.11% 1.12% 1.15% 1.14% 1.14%
Allowance
for loan
losses/non-
performing
loans 455.56% 291.94% 256.19% 280.35% 264.53%
Net loan
charge-offs
(annualized)/
average
loans 0.23% 0.19% 0.11% 0.19% 0.31%
Balances at
period end
----------
Total
assets $2,509,220 $2,397,702 $2,379,793 $2,353,385 $2,320,164
Earning
assets 2,205,706 2,105,281 2,073,678 2,075,244 2,041,307
Securities 429,169 399,034 400,786 415,193 425,196
Mortgage
loans held
for sale 34,099 33,496 42,865 32,792 32,623
Loans, net
of
unearned 1,664,479 1,646,223 1,608,697 1,592,391 1,572,103
Intangibles 99,575 100,832 100,766 101,528 101,406
Non-interest
bearing
deposits $ 272,672 $ 250,270 $ 244,086 $ 233,095 $ 238,651
Interest
bearing
deposits 1,759,073 1,618,181 1,574,232 1,531,082 1,502,350
Total
de-
posits 2,031,745 1,868,451 1,818,318 1,764,177 1,741,001
Other
borrowings 214,054 266,505 299,076 334,952 324,330
Shareholders'
equity 239,418 235,440 237,211 235,454 230,892
Market
value per
common
share 36.94 31.63 31.65 30.76 31.10
Book value
per common
share 23.20 22.88 22.85 22.64 22.17
Tangible
book value
per common
share 13.55 13.08 13.14 12.88 12.44
Shareholders'
equity to
assets
(actual) 9.54 9.82 9.97 10.00 9.95
Tangible
capital
ratio 5.80 5.86 5.99 5.95 5.84
Leverage
ratio 8.72 8.60 8.79 8.67 8.59
Detail of
Loans by
Category
----------
Commercial,
financial,
agri-
cultural $ 206,914 $ 226,203 $ 224,673 $ 228,371 $ 228,305
Lease
financing 6,548 7,469 8,143 9,576 10,763
Real estate
- construc-
tion 196,228 169,543 162,694 159,798 159,155
Real estate
- 1-4 family
mortgages 578,931 566,455 558,616 547,307 531,347
Real estate
- commer-
cial
mortgages 595,589 597,273 570,849 556,694 537,800
Installment
loans to
individuals 80,269 79,280 83,722 90,645 104,733
---------- ---------- ---------- ---------- ----------
Loans, net
of un-
earned $1,664,479 $1,646,223 $1,608,697 $1,592,391 $1,572,103
========== ========== ========== ========== ==========
1st Qtr
2006 - For the Three Months
1st Qtr Ended March 31,
2005 ---------------------------------
Percent Percent
Average balances Variance 2006 2005 Variance
--------------------- -------- ---------- ---------- --------
Total assets 5.02 $2,456,602 $2,339,201 5.02
Earning assets 5.76 2,165,821 2,047,770 5.76
Securities (8.87) 412,670 452,818 (8.87)
Loans, net of unearned 7.12 1,689,106 1,576,877 7.12
Intangibles (1.58) 99,854 101,453 (1.58)
Non-interest bearing
deposits 11.72 256,548 229,638 11.72
Interest bearing
deposits 13.88 1,689,671 1,483,677 13.88
Total deposits 13.59 1,946,219 1,713,315 13.59
Other borrowings (34.09) 245,093 371,855 (34.09)
Shareholders' equity 3.19 239,771 232,348 3.19
Asset quality data
Nonaccrual loans (34.10) $ 2,509 $ 3,807 (34.10)
Loans 90 past due
or more (48.50) 1,546 3,002 (48.50)
---------- ----------
Non-performing loans (40.45) 4,055 6,809 (40.45)
Other real estate owned
and repossessions (45.77) 3,922 7,232 (45.77)
---------- ----------
Non-performing assets (43.19) $ 7,977 $ 14,041 (43.19)
========== ==========
Net loan charge-offs (19.22) $ 958 $ 1,186 (19.22)
Allowance for loan
losses 2.56 18,473 18,012 2.56
Non-performing loans/
total loans 0.24% 0.43%
Non-performing assets/
total assets 0.32% 0.61%
Allowance for loan
losses/total loans 1.11% 1.14%
Allowance for loan
losses/non-performing
loans 455.56% 264.53%
Net loan charge-offs
(annualized)/average
loans 0.23% 0.31%
Balances at period end
----------------------
Total assets $2,509,220 $2,320,164 8.15
Earning assets 2,205,706 2,041,307 8.05
Securities 429,169 425,196 0.93
Mortgage loans held
for sale 34,099 32,623 4.52
Loans, net of unearned 1,664,479 1,572,103 5.88
Intangibles 99,575 101,406 (1.81)
Non-interest bearing
deposits $ 272,672 $238,651 14.26
Interest bearing deposits 1,759,073 1,502,350 17.09
Total deposits 2,031,745 1,741,001 16.70
Other borrowings 214,054 324,330 (34.00)
Shareholders' equity 239,418 230,892 3.69
Market value per
common share 36.94 31.10 18.78
Book value per
common share 23.20 22.17 4.63
Tangible book value
per common share 13.55 12.44 8.98
Shareholders' equity
to assets (actual) 9.54 9.95
Tangible capital ratio 5.80 5.84
Leverage ratio 8.72 8.59
Detail of Loans by Category
---------------------------
Commercial, financial,
agricultural $ 206,914 $228,305 (9.37)
Lease financing 6,548 10,763 (39.16)
Real estate -
construction 196,228 159,155 23.29
Real estate - 1-4
family mortgages 578,931 531,347 8.96
Real estate - commercial
mortgages 595,589 537,800 10.75
Installment loans to
individuals 80,269 104,733 (23.36)
---------- ----------
Loans, net of unearned $1,664,479 $1,572,103 5.88
========== ===========