TUPELO, Miss., July 25, 2007 (PRIME NEWSWIRE) -- Renasant Corporation (Nasdaq:RNST) (the "Company") today announced results for the second quarter of 2007. Basic earnings per share were $0.42 and diluted earnings per share were $0.41 for the second quarter of 2007, compared to basic earnings per share of $0.45 and diluted earnings per share of $0.44 for the second quarter of 2006. Net income for the second quarter of 2007 was $7,087,000 as compared to $7,043,000 for the second quarter of 2006. During the second quarter of 2006, net income included a negative provision for loan losses of $360,000 as compared to a provision for loan losses of $800,000 for the second quarter of 2007.
"We are pleased with our second quarter results, particularly, our ability to offset the negative provision recorded in the second quarter of 2006 with core sources of revenue and expense control," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "In addition, we completed our offering of 2.76 million shares of our common stock in the second quarter of 2007. As we expected, this decreased both basic and diluted earnings per share for the quarter by $0.02."
Total assets as of June 30, 2007 were $2.791 billion, representing a 6.9% increase from December 31, 2006 and an 11.5% increase since June 30, 2006. Total loans grew to approximately $1.978 billion at the end of the second quarter of 2007, an increase of 8.3% from $1.827 billion at December 31, 2006 and an increase of 14.3% from $1.730 billion at June 30, 2006. Total deposits grew to $2.223 billion at June 30, 2007, representing a 5.4% increase from December 31, 2006 and a 12.1% increase since June 30, 2006.
Net interest income grew to $21,519,000 for the second quarter of 2007 compared to $20,942,000 for the same period in 2006. Net interest margin declined to 3.66% for the second quarter of 2007 as compared to 3.96% for the second quarter of 2006. On a linked quarter basis, net interest margin was 3.66% for the second quarter of 2007 as compared to 3.67% for the first quarter of 2007.
Noninterest income increased 16.6% to $12,867,000 for the second quarter of 2007 from $11,033,000 for the second quarter of 2006. Increases in fee income from multiple sources, including insurance, mortgage lending, and loan and deposit fees, contributed to the rise in noninterest income.
Noninterest expense was $23,367,000 for the second quarter of 2007, up 5.9% compared to $22,059,000 for the second quarter of 2006.
Credit quality remained strong during the second quarter of 2007. Annualized net charge-offs as a percentage of average loans were 0.06% for the second quarter of 2007, slightly up from 0.04% for the first quarter of 2007 and compared to a net recovery of 0.20% for the second quarter of 2006. As previously mentioned, the second quarter of 2006 was positively impacted by net recoveries of $877,000. Non-performing loans as a percentage of total loans were 0.38% at June 30, 2007, as compared to 0.62% at December 31, 2006 and 0.45% at June 30, 2006. The allowance for loan losses as a percentage of loans was 1.04% at June 30, 2007, as compared to 1.07% at December 31, 2006 and 1.10% at June 30, 2006.
"As previously announced, we consummated our merger with Capital Bancorp, Inc. of Nashville, Tennessee, on July 1, 2007," stated McGraw. "We welcome the addition of Capital to our team and believe their values, culture and operating philosophy will blend smoothly with ours."
As of June 30, 2007, Capital Bancorp, Inc. had total assets of approximately $614 million, total loans of $517 million and total deposits of $490 million, and operated seven banking locations in the Nashville, Tennessee metropolitan area.
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 Thursday, July 26, 2007, 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 866-277-1181 in the United States and entering the participant passcode 24845481. International participants should dial 617-597-5358 and enter the participant passcode 24845481.
About Renasant Corporation:
Renasant Corporation is the parent of Renasant Bank and Renasant Insurance. As of July 25, 2007, Renasant has assets of approximately $3.4 billion and operates 70 banking, mortgage and insurance offices 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)
2007
-------------------------
Second First
Statement of earnings Quarter Quarter
--------------------- ---------- ----------
Interest income - taxable
equivalent basis $ 44,399 $ 42,534
Interest income $ 43,541 $ 41,710
Interest expense 22,022 21,049
---------- ----------
Net interest income 21,519 20,661
Provision for loan losses 800 750
---------- ----------
Net interest income after provision 20,719 19,911
Service charges on deposit accounts 4,919 4,844
Fees and commissions on loans and deposits 4,122 3,728
Insurance commissions and fees 918 810
Trust revenue 618 567
Gain (loss) on sale of securities (1) 79
Gain on sale of mortgage loans 1,225 1,146
Other 1,066 1,503
---------- ----------
Total non-interest income 12,867 12,677
Salaries and employee benefits 13,083 12,927
Occupancy and equipment 2,836 2,731
Data processing 1,265 1,202
Amortization of intangibles 391 394
Other 5,792 5,247
---------- ----------
Total non-interest expense 23,367 22,501
Income before income taxes 10,219 10,087
Income taxes 3,132 3,125
---------- ----------
Net income $ 7,087 $ 6,962
========== ==========
Basic earnings per share $ 0.42 $ 0.45
Diluted earnings per share 0.41 0.44
Average basic shares outstanding 17,029,781 15,554,515
Average diluted shares outstanding 17,292,914 15,865,906
Common shares outstanding 18,356,974 15,560,006
Cash dividend per common share $ 0.160 $ 0.160
Performance ratios
------------------
Return on average shareholders' equity 9.74% 11.05%
Return on average shareholders' equity,
excluding amortization expense 10.07% 11.44%
Return on average assets 1.04% 1.06%
Return on average assets, excluding
amortization expense 1.07% 1.10%
Net interest margin (FTE) 3.66% 3.67%
Yield on earning assets (FTE) 7.25% 7.27%
Average earning assets to average assets 89.74% 89.13%
Average loans to average deposits 87.00% 86.12%
Noninterest income (less securities gains/
losses) to average assets 1.89% 1.92%
Noninterest expense to average assets 3.43% 3.43%
Net overhead ratio 1.54% 1.51%
Efficiency ratio (FTE) 66.30% 65.87%
Average balances
--------------------
Total assets $2,735,556 $2,663,515
Earning assets 2,454,953 2,373,908
Securities 476,742 444,420
Loans, net of unearned 1,954,517 1,885,122
Intangibles 97,697 98,094
Non-interest bearing deposits $ 257,273 $ 258,071
Interest bearing deposits 1,951,730 1,899,474
Total deposits 2,209,003 2,157,545
Other borrowings 201,743 212,762
Shareholders' equity 291,864 255,470
Asset quality data
------------------
Nonaccrual loans $ 5,905 $ 6,368
Loans 90 past due or more 1,648 3,913
---------- ----------
Non-performing loans 7,553 10,281
Other real estate owned and repossessions 2,309 2,897
---------- ----------
Non-performing assets $ 9,862 $ 13,178
========== ==========
Net loan charge-offs (recoveries) $ 277 $ 202
Allowance for loan losses 20,605 20,082
Non-performing loans / total loans 0.38% 0.54%
Non-performing assets / total assets 0.35% 0.48%
Allowance for loan losses / total loans 1.04% 1.06%
Allowance for loan losses /
non-performing loans 272.81% 195.33%
Annualized net loan charge-offs /
average loans 0.06% 0.04%
Balances at period end
----------------------
Total assets $2,791,295 $2,754,930
Earning assets 2,494,569 2,460,185
Securities 460,606 462,588
Mortgage loans held for sale 38,048 29,098
Loans, net of unearned 1,977,941 1,889,799
Intangibles 97,286 97,902
Non-interest bearing deposits $ 274,336 $ 273,726
Interest bearing deposits 1,949,018 1,991,620
Total deposits 2,223,354 2,265,346
Other borrowings 218,045 200,764
Shareholders' equity 316,634 258,566
Market value per common share $ 22.74 $ 24.68
Book value per common share 17.25 16.62
Tangible book value per common share 11.95 10.33
Shareholders' equity to assets (actual) 11.34% 9.39%
Tangible capital ratio 8.14% 6.05%
Leverage ratio 11.02% 8.85%
Detail of Loans by Category
---------------------------
Commercial, financial, agricultural $ 265,062 $ 243,274
Lease financing 3,409 3,833
Real estate - construction 247,241 231,311
Real estate - 1-4 family mortgages 669,557 654,604
Real estate - commercial mortgages 715,408 676,015
Installment loans to individuals 77,264 80,762
---------- ----------
Loans, net of unearned $1,977,941 $1,889,799
========== ==========
2006
--------------------------------------------------
Statement of Fourth Third Second First
earnings Quarter Quarter Quarter Quarter
------------ ---------- ---------- ---------- ----------
Interest income -
taxable equivalent
basis $ 41,654 $ 40,916 $ 38,437 $ 36,632
Interest income $ 40,809 $ 40,070 $ 37,597 $ 35,817
Interest expense 19,899 18,367 16,655 15,309
---------- ---------- ---------- ----------
Net interest
income 20,910 21,703 20,942 20,508
Provision for
loan losses 800 900 (360) 1,068
---------- ---------- ---------- ----------
Net interest
income after
provision 20,110 20,803 21,302 19,440
Service charges on
deposit accounts 4,809 4,686 4,527 4,424
Fees and commissions
on loans and
deposits 3,530 3,662 3,659 3,003
Insurance commissions
and fees 868 975 868 822
Trust revenue 625 630 630 630
Gain (loss) on sale
of securities -- -- 4 21
Gain on sale of
mortgage loans 1,034 1,029 674 760
Other 898 731 671 1,773
---------- ---------- ---------- ----------
Total non-interest
income 11,764 11,713 11,033 11,433
Salaries and
employee benefits 12,234 13,013 12,301 12,212
Occupancy and
equipment 2,773 2,788 2,688 2,786
Data processing 1,124 1,122 1,053 982
Amortization of
intangibles 396 398 414 431
Other 5,484 5,724 5,603 5,480
---------- ---------- ---------- ----------
Total non-interest
expense 22,011 23,045 22,059 21,891
Income before
income taxes 9,863 9,471 10,276 8,982
Income taxes 2,914 2,839 3,233 2,481
---------- ---------- ---------- ----------
Net income $ 6,949 $ 6,632 $ 7,043 $ 6,501
========== ========== ========== ==========
Basic earnings per
share $ 0.45 $ 0.43 $ 0.45 $ 0.42
Diluted earnings
per share 0.44 0.42 0.44 0.41
Average basic
shares out-
standing 15,534,907 15,529,002 15,504,993 15,455,763
Average diluted
shares out-
standing 15,917,314 15,904,213 15,832,310 15,743,906
Common shares
outstanding 15,536,475 15,531,611 15,521,611 15,496,004
Cash dividend per
common share $ 0.160 $ 0.160 $ 0.153 $ 0.153
Performance ratios
------------------
Return on average
shareholders'
equity 10.79% 10.70% 11.68% 11.00%
Return on average
shareholders'
equity, excluding
amortization
expense 11.17% 11.09% 12.10% 11.44%
Return on average
assets 1.07% 1.05% 1.14% 1.07%
Return on average
assets, excluding
amortization
expense 1.11% 1.08% 1.18% 1.12%
Net interest
margin (FTE) 3.78% 4.02% 3.96% 3.99%
Yield on earning
assets (FTE) 7.23% 7.29% 7.00% 6.86%
Average earning
assets to average
assets 88.95% 88.46% 88.66% 88.16%
Average loans to
average deposits 87.91% 86.55% 85.06% 85.66%
Noninterest income
(less securities
gains/losses) to
average assets 1.82% 1.85% 1.78% 1.88%
Noninterest expense
to average assets 3.40% 3.63% 3.56% 3.61%
Net overhead ratio 1.58% 1.79% 1.78% 1.73%
Efficiency ratio
(FTE) 65.67% 67.26% 67.22% 66.83%
Average balances
----------------
Total assets $2,569,719 $2,517,189 $2,485,527 $2,456,602
Earning assets 2,285,878 2,226,598 2,203,677 2,165,821
Securities 439,383 446,098 448,905 412,670
Loans, net of
unearned 1,828,637 1,770,135 1,721,426 1,689,106
Intangibles 98,554 98,955 99,359 99,854
Non-interest
bearing deposits $ 260,823 $ 269,051 $ 258,886 $ 256,548
Interest bearing
deposits 1,780,128 1,732,532 1,733,865 1,689,671
Total deposits 2,040,951 2,001,583 1,992,751 1,946,219
Other borrowings 241,642 239,295 225,201 245,093
Shareholders'
equity 255,494 245,946 241,841 239,771
Asset quality data
------------------
Nonaccrual loans $ 7,821 $ 6,264 $ 5,978 $ 2,509
Loans 90 past due
or more 3,467 1,798 1,745 1,546
---------- ---------- ---------- ----------
Non-performing
loans 11,288 8,062 7,723 4,055
Other real estate
owned and
repossessions 4,579 3,502 3,697 3,922
---------- ---------- ---------- ----------
Non-performing
assets $ 15,867 $ 11,564 $ 11,420 $ 7,977
========== ========== ========== ==========
Net loan charge-
offs (recoveries) $ 566 $ 590 $ (877) $ 958
Allowance for loan
losses 19,534 19,300 18,990 18,473
Non-performing
loans/total loans 0.62% 0.46% 0.45% 0.24%
Non-performing
assets/total assets 0.61% 0.46% 0.46% 0.32%
Allowance for loan
losses/total loans 1.07% 1.10% 1.10% 1.11%
Allowance for loan
losses/non-per-
forming loans 173.05% 239.39% 245.89% 455.56%
Annualized net loan
charge-offs/average
loans 0.12% 0.13% -0.20% 0.23%
Balances at
period end
-----------
Total assets $2,611,356 $2,530,892 $2,503,333 $2,509,220
Earning assets 2,315,431 2,245,428 2,208,320 2,205,706
Securities 428,065 438,287 434,567 429,169
Mortgage loans held
for sale 38,672 32,134 36,519 34,099
Loans, net of
unearned 1,826,762 1,761,842 1,729,861 1,664,479
Intangibles 98,296 98,760 99,159 99,575
Non-interest
bearing deposits $ 271,237 $ 257,764 $ 272,686 $ 272,672
Interest bearing
deposits 1,837,728 1,727,650 1,710,780 1,759,073
Total deposits 2,108,965 1,985,414 1,983,466 2,031,745
Other borrowings 216,423 264,983 252,671 214,054
Shareholders'
equity 252,704 250,622 241,043 239,418
Market value per
common share $ 30.63 $ 28.07 $ 26.90 $ 24.63
Book value per
common share 16.27 16.14 15.53 15.45
Tangible book value
per common share 9.94 9.78 9.14 9.02
Shareholders' equity
to assets (actual) 9.68% 9.90% 9.63% 9.54%
Tangible capital
ratio 6.14% 6.24% 5.90% 5.80%
Leverage ratio 8.60% 8.79% 8.67% 8.59%
Detail of Loans
by Category
---------------
Commercial,
financial,
agricultural $ 236,741 $ 231,361 $ 230,890 $ 206,914
Lease financing 4,234 4,617 5,284 6,548
Real estate
- construction 242,669 234,667 229,969 196,228
Real estate -
1-4 family
mortgages 636,060 614,143 593,174 578,931
Real estate
- commercial
mortgages 629,354 599,314 594,121 595,589
Installment loans
to individuals 77,704 77,740 76,423 80,269
---------- ---------- ---------- ----------
Loans, net of
unearned $1,826,762 $1,761,842 $1,729,861 $1,664,479
========== ========== ========== ==========
For the Six Months
Q2 2007 - Ended June 30,
Q2 2006 ------------------------------------
Percent Percent
Statement of earnings Variance 2007 2006 Variance
--------------------- -------- ---------- ---------- --------
Interest income -
taxable equivalent
basis 15.51 $ 86,933 $ 75,069 15.80
Interest income 15.81 $ 85,251 $ 73,414 16.12
Interest expense 32.22 43,071 31,964 34.75
-------- ---------- ---------- --------
Net interest income 2.76 42,180 41,450 1.76
Provision for loan
losses (322.22) 1,550 708 118.93
-------- ---------- ---------- --------
Net interest income
after provision (2.74) 40,630 40,742 (0.27)
Service charges on
deposit accounts 8.66 9,763 8,951 9.07
Fees and commissions
on loans and deposits 12.65 7,850 6,662 17.83
Insurance commissions
and fees 5.76 1,728 1,690 2.25
Trust revenue (1.90) 1,185 1,260 (5.95)
Gain (loss) on sale
of securities (125.00) 78 25 212.00
Gain on sale of
mortgage loans 81.75 2,371 1,434 65.34
Other 58.87 2,569 2,444 5.11
-------- ---------- ---------- --------
Total non-interest
income 16.62 25,544 22,466 13.70
Salaries and employee
benefits 6.36 26,010 24,513 6.11
Occupancy and
equipment 5.51 5,567 5,474 1.70
Data processing 20.13 2,467 2,035 21.23
Amortization of
intangibles (5.56) 785 845 (7.10)
Other 3.37 11,039 11,083 (0.40)
-------- ---------- ---------- --------
Total non-interest
expense 5.93 45,868 43,950 4.36
Income before income
taxes (0.55) 20,306 19,258 5.44
Income taxes (3.12) 6,257 5,714 9.50
-------- ---------- ---------- --------
Net income 0.62 $ 14,049 $ 13,544 3.73
======== ========== ========== ========
Basic earnings
per share (6.67) $ 0.86 $ 0.87 (1.15)
Diluted earnings
per share (6.82) 0.85 0.86 (1.16)
Average basic shares
outstanding 9.83 16,296,223 15,482,279 5.26
Average diluted
shares outstanding 9.23 16,578,103 15,792,869 4.97
Common shares
outstanding 18.27 18,356,974 15,521,611 18.27
Cash dividend per
common share 4.35 $ 0.320 $ 0.307 4.35
Performance ratios
------------------
Return on average
shareholders' equity 10.35% 11.34%
Return on average
shareholders' equity,
excluding amortization
expense 10.70% 11.77%
Return on average assets 1.05% 1.11%
Return on average assets,
excluding amortization
expense 1.09% 1.15%
Net interest
margin (FTE) 3.66% 3.98%
Yield on earning
assets (FTE) 7.26% 6.93%
Average earning
assets to average
assets 89.49% 88.45%
Average loans to
average deposits 86.65% 85.47%
Noninterest income
(less securities
gains/losses) to
average assets 1.90% 1.83%
Noninterest expense
to average assets 3.43% 3.59%
Net overhead ratio 1.52% 1.76%
Efficiency ratio (FTE) 66.09% 67.03%
Average balances
----------------
Total assets 10.06 $2,698,373 $2,471,384 9.18
Earning assets 11.40 2,414,653 2,185,848 10.47
Securities 6.20 460,669 431,883 6.67
Loans, net of unearned 13.54 1,920,011 1,705,355 12.59
Intangibles (1.67) 97,894 99,649 (1.76)
Non-interest bearing
deposits (0.62) $ 258,845 $ 257,740 0.43
Interest bearing
deposits 12.57 1,925,746 1,711,890 12.49
Total deposits 10.85 2,184,591 1,969,630 10.91
Other borrowings (10.42) 207,222 235,092 (11.85)
Shareholders' equity 20.68 273,787 240,912 13.65
Asset quality data
------------------
Nonaccrual loans (1.22) $ 5,905 $ 5,978 (1.22)
Loans 90 past due
or more (5.56) 1,648 1,745 (5.56)
---------- ----------
Non-performing loans (2.20) 7,553 7,723 (2.20)
Other real estate
owned and
repossessions (37.54) 2,309 3,697 (37.54)
---------- ----------
Non-performing assets (13.64) $ 9,862 $ 11,420 (13.64)
========== ==========
Net loan charge-offs
(recoveries) (131.58) $ 479 $ 81 491.36
Allowance for loan
losses 8.50 20,605 18,990 8.50
Non-performing
loans/total loans 0.38% 0.45%
Non-performing
assets/total assets 0.35% 0.46%
Allowance for loan
losses/total loans 1.04% 1.10%
Allowance for loan
losses/non-performing
loans 272.81% 245.89%
Annualized net loan
charge-offs/average
loans 0.05% 0.01%
Balances at period end
----------------------
Total assets $2,791,295 $2,503,333 11.50
Earning assets 2,494,569 2,208,320 12.96
Securities 460,606 434,567 5.99
Mortgage loans held
for sale 38,048 36,519 4.19
Loans, net of unearned 1,977,941 1,729,861 14.34
Intangibles 97,286 99,159 (1.89)
Non-interest bearing
deposits $ 274,336 $ 272,686 0.61
Interest bearing
deposits 1,949,018 1,710,780 13.93
Total deposits 2,223,354 1,983,466 12.09
Other borrowings 218,045 252,671 (13.70)
Shareholders' equity 316,634 241,043 31.36
Market value per
common share $ 22.74 $ 26.90 (15.46)
Book value per
common share 17.25 15.53 11.07
Tangible book value
per common share 11.95 9.14 30.72
Shareholders' equity
to assets (actual) 11.34% 9.63%
Tangible capital ratio 8.14% 5.90%
Leverage ratio 11.02% 8.67%
Detail of Loans by
Category
----------------------
Commercial, financial,
agricultural $ 265,062 $ 230,890 14.80
Lease financing 3,409 5,284 (35.48)
Real estate
- construction 247,241 229,969 7.51
Real estate - 1-4
family mortgages 669,557 593,174 12.88
Real estate
- commercial mortgages 715,408 594,121 20.41
Installment loans to
individuals 77,264 76,423 1.10
---------- ----------
Loans, net of
unearned $1,977,941 $1,729,861 14.34
========== ==========
* Percent variance not meaningful
Share and per share amounts have been restated to reflect the
three-for-two stock split issued August 28, 2006