TUPELO, Miss., April 17, 2007 (PRIME NEWSWIRE) -- Renasant Corporation (Nasdaq:RNST) (the "Company") today announced results for the first quarter of 2007. Basic earnings per share were $0.45, up 7.1%, and diluted earnings per share were $0.44, up 7.3%, compared to basic earnings per share of $0.42 and diluted earnings per share of $0.41 for the first quarter of 2006. Net income for the first quarter of 2007 was $6,962,000, up 7.1%, or $461,000, from the first quarter of 2006.
"We are pleased with our first quarter 2007 results," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "As the current interest rate environment continues to suppress margin growth throughout the entire banking industry, we were able to offset, to a certain extent, the compression on net interest margin through double digit loan, deposit and fee income growth, along with operating expense control and excellent credit quality to meet our first quarter earnings goals."
Total assets as of March 31, 2007 were $2.755 billion, representing a 5.5% increase from December 31, 2006 and a 9.8% increase since March 31, 2006. Total loans grew to approximately $1.890 billion at the end of the first quarter of 2007, an increase of 3.5% from $1.827 billion at December 31, 2006 and an increase of 13.5% from $1.664 billion at March 31, 2006. Total deposits grew to $2.265 billion at March 31, 2007, representing a 7.4% increase from December 31, 2006 and an 11.5% increase since March 31, 2006.
Net interest income grew slightly to $20,661,000 for the first quarter of 2007 compared to $20,508,000 for the same period in 2006. Net interest margin declined to 3.67% for the first quarter of 2007 compared to 3.78% for the fourth quarter of 2006 and 3.99% for the first quarter of 2006. This was in part due to a surge in public fund deposits that were placed in short term investments. Net interest income for the first quarter of 2006 included approximately $262,000 in interest income from loans accounted for in accordance with AICPA Statement of Position 03-3 as compared to $19,000 for the first quarter of 2007. This additional interest income increased first quarter 2006 net interest margin by 0.05% but had no impact on net interest margin in the first quarter of 2007.
Noninterest income increased 10.9% to $12,677,000 for the first quarter of 2007 from $11,433,000 for the first quarter of 2006 from multiple sources including insurance, mortgage lending, and loan and deposit fees. During the first quarter of 2007, noninterest income included $500,000 from the sale of other real estate. During the first quarter of 2006, noninterest income included a one time gain of $558,000 from the early extinguishment of an FHLB advance and a $397,000 nontaxable death benefit from life insurance proceeds.
Noninterest expense was $22,501,000 for the first quarter of 2007, up 2.79% compared to $21,891,000 for the first quarter of 2006.
"We continued the trend of increasing our noninterest income at a higher rate than our noninterest expense. This is representative of our commitment to control our overall expenses while at the same time significantly growing loans, deposits and noninterest income," said McGraw.
Despite national trends, the Company's overall credit quality remained strong during the first quarter of 2007. Annualized net charge-offs as a percentage of average loans were 0.04% for the first quarter of 2007, down from 0.12% for the fourth quarter of 2006 and 0.23% for the first quarter of 2006. Non-performing loans as a percentage of total loans were 0.54% at March 31, 2007, as compared to 0.62% at December 31, 2006 and 0.24% at March 31, 2006. The allowance for loan losses as a percentage of loans was 1.06% at March 31, 2007, as compared to 1.07% at December 31, 2006 and 1.11% at March 31, 2006.
"On February 5, 2007, we announced the signing of a definitive agreement to acquire Capital Bancorp, Inc. of Nashville, Tennessee which follows our strategic plan of expansion into key growth markets. Completion of the merger is subject to a number of conditions, including, among other things, regulatory approval and approval by the shareholders of Capital Bancorp, Inc. If all conditions to the completion of the merger are satisfied, we anticipate the merger to be completed in the third quarter of this year and preparation for a successful integration is already underway," 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 18, 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 866-831-6234 in the United States and entering the participant passcode 49064053. International participants should dial 617-213-8854 and enter the participant passcode 49064053.
About Renasant Corporation:
Renasant Corporation is the parent of Renasant Bank and Renasant Insurance. Renasant has assets of approximately $2.8 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.primenewswire.com/newsroom/prs/?pkgid=2567
Note to Investors:
The description of the merger of Capital Bancorp, Inc. ("Capital") into the Company set forth above is merely a summary and does not contain a description of all of the material terms of the transaction. The Company has filed a Registration Statement on Form S-4 (Registration No. 333- 141449) with the Securities and Exchange Commission (the "SEC") containing a preliminary proxy statement/prospectus relating to the merger. After the SEC has declared the Registration Statement effective, the proxy statement/prospectus will be mailed to Capital shareholders and, if required by applicable laws or regulations, to shareholders of the Company. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THESE MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, CAPITAL AND THE PROPOSED MERGER.
The Company, Capital and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Capital's shareholders and, if approval by the Company's shareholders is required, the Company's shareholders. Information about the Company, Capital and their respective directors and executive officers and their ownership of Company or Capital common stock, as applicable, will be set forth or incorporated by reference in the definitive proxy statement/prospectus for the merger when it becomes available. The proxy statement/prospectus and other relevant materials (when they become available), and any other documents filed by the Company or Capital with the SEC, may be obtained free of charge at the SEC's website at www.sec.gov. In addition, investors may obtain free copies of the documents filed with the SEC by the Company by directing a written request to Renasant Corporation, 209 Troy Street, Tupelo, Mississippi 38804, Attention: Investor Relations, and free copies of the documents filed with the SEC by Capital by directing a written request to Capital Bancorp, Inc., 1816 Hayes Street, Nashville, Tennessee 37203.
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
----------- -----------------------------------------------
Statement
of First Fourth Third Second First
earnings Quarter Quarter Quarter Quarter Quarter
--------- ----------- ----------- ----------- ----------- -----------
Interest
income -
taxable
equivalent
basis $ 42,534 $ 41,654 $ 40,916 $ 38,437 $ 36,632
Interest
income $ 41,710 $ 40,809 $ 40,070 $ 37,597 $ 35,817
Interest
expense 21,049 19,899 18,367 16,655 15,309
----------- ----------- ----------- ----------- -----------
Net
interest
income 20,661 20,910 21,703 20,942 20,508
Provision
for
loan
losses 750 800 900 (360) 1,068
----------- ----------- ----------- ----------- -----------
Net interest
income
after
provision 19,911 20,110 20,803 21,302 19,440
Service
charges on
deposit
accounts 4,844 4,809 4,686 4,527 4,424
Fees and
commissions
on loans and
deposits 3,728 3,530 3,662 3,659 3,003
Insurance
commissions
and fees 810 868 975 868 822
Trust
revenue 567 625 630 630 630
Gain (loss)
on sale of
securities 79 -- -- 4 21
Gain on sale
of mortgage
loans 1,146 1,034 1,029 674 760
Other 1,503 898 731 671 1,773
----------- ----------- ----------- ----------- -----------
Total
non-
interest
income 12,677 11,764 11,713 11,033 11,433
Salaries and
employee
benefits 12,927 12,234 13,013 12,301 12,212
Occupancy and
equipment 2,731 2,773 2,788 2,688 2,786
Data
processing 1,202 1,124 1,122 1,053 982
Amortization
of
intangibles 394 396 398 414 431
Other 5,247 5,484 5,724 5,603 5,480
----------- ----------- ----------- ----------- -----------
Total
non-interest
expense 22,501 22,011 23,045 22,059 21,891
Income
before
income
taxes 10,087 9,863 9,471 10,276 8,982
Income
taxes 3,125 2,914 2,839 3,233 2,481
----------- ----------- ----------- ----------- -----------
Net
income $ 6,962 $ 6,949 $ 6,632 $ 7,043 $ 6,501
=========== =========== =========== =========== ===========
Basic
earnings
per
share $ 0.45 $ 0.45 $ 0.43 $ 0.45 $ 0.42
Diluted
earnings
per share 0.44 0.44 0.42 0.44 0.41
Average
basic
shares
outstand-
ing 15,554,515 15,534,907 15,529,002 15,513,356 15,480,536
Average
diluted
shares
outstand-
ing 15,865,906 15,917,314 15,904,213 15,840,673 15,768,679
Common
shares
outstand-
ing 15,560,006 15,536,475 15,531,611 15,521,611 15,496,004
Cash
dividend
per common
share $ 0.160 $ 0.160 $ 0.160 $ 0.153 $ 0.153
Performance
ratios
-----------
Return on
average
shareholders'
equity 11.05% 10.79% 10.70% 11.68% 11.00%
Return on
average
shareholders'
equity,
excluding
amortization
expense 11.44% 11.17% 11.09% 12.10% 11.44%
Return on
average
assets 1.06% 1.07% 1.05% 1.14% 1.07%
Return on
average
assets,
excluding
amortization
expense 1.10% 1.11% 1.08% 1.18% 1.12%
Net interest
margin
(FTE) 3.67% 3.78% 4.02% 3.96% 3.99%
Yield on
earning
assets
(FTE) 7.27% 7.23% 7.29% 7.00% 6.86%
Average
earning
assets to
average
assets 89.13% 88.95% 88.46% 88.66% 88.16%
Average loans
to average
deposits 86.12% 87.91% 86.55% 85.06% 85.66%
Noninterest
income
(less
securities
gains/
losses) to
average
assets 1.92% 1.82% 1.85% 1.78% 1.88%
Noninterest
expense to
average
assets 3.43% 3.40% 3.63% 3.56% 3.61%
Net overhead
ratio 1.51% 1.58% 1.79% 1.78% 1.73%
Efficiency
ratio (FTE) 65.87% 65.67% 67.26% 67.22% 66.83%
Average
balances
---------
Total
assets $ 2,663,515 $ 2,569,719 $ 2,517,189 $ 2,485,527 $ 2,456,602
Earning
assets 2,373,908 2,285,878 2,226,598 2,203,677 2,165,821
Securities 444,420 439,383 446,098 448,905 412,670
Loans, net
of
unearned 1,885,122 1,828,637 1,770,135 1,721,426 1,689,106
Intangibles 98,094 98,554 98,955 99,359 99,854
Non-interest
bearing
deposits $ 258,071 $ 260,823 $ 269,051 $ 258,886 $ 256,548
Interest
bearing
deposits 1,899,474 1,780,128 1,732,532 1,733,865 1,689,671
Total
deposits 2,157,545 2,040,951 2,001,583 1,992,751 1,946,219
Other
borrowings 212,762 241,642 239,295 225,201 245,093
Shareholders'
equity 255,470 255,494 245,946 241,841 239,771
Asset quality
data
-------------
Nonaccrual
loans $ 6,368 $ 7,821 $ 6,264 $ 5,978 $ 2,509
Loans 90 past
due or
more 3,913 3,467 1,798 1,745 1,546
----------- ----------- ----------- ----------- -----------
Non-performing
loans 10,281 11,288 8,062 7,723 4,055
Other real
estate owned
and
repossessions 2,897 4,579 3,502 3,697 3,922
----------- ----------- ----------- ----------- -----------
Non-
performing
assets $ 13,178 $ 15,867 $ 11,564 $ 11,420 $ 7,977
=========== =========== =========== =========== ===========
Net loan
charge-offs
(recov-
eries) $ 201 $ 566 $ 590 $ (877)$ 958
Allowance
for loan
losses 20,082 19,534 19,300 18,990 18,473
Non-
performing
loans /
total
loans 0.54% 0.62% 0.46% 0.45% 0.24%
Non-
performing
assets /
total
assets 0.48% 0.61% 0.46% 0.46% 0.32%
Allowance for
loan losses /
total
loans 1.06% 1.07% 1.10% 1.10% 1.11%
Allowance for
loan losses /
non-performing
loans 195.33% 173.05% 239.39% 245.89% 455.56%
Annualized
net loan
charge-offs /
average
loans 0.04% 0.12% 0.13% -0.20% 0.23%
Balances at
period end
-----------
Total
assets $ 2,754,930 $ 2,611,356 $ 2,530,892 $ 2,503,333 $ 2,509,220
Earning
assets 2,460,185 2,315,431 2,245,428 2,208,320 2,205,706
Securities 462,588 428,065 438,287 434,567 429,169
Mortgage
loans held
for sale 29,098 38,672 32,134 36,519 34,099
Loans, net of
unearned 1,889,799 1,826,762 1,761,842 1,729,861 1,664,479
Intangibles 97,902 98,296 98,760 99,159 99,575
Non-interest
bearing
deposits $ 273,726 $ 271,237 $ 257,764 $ 272,686 $ 272,672
Interest
bearing
deposits 1,991,620 1,837,728 1,727,650 1,710,780 1,759,073
Total
deposits 2,265,346 2,108,965 1,985,414 1,983,466 2,031,745
Other
borrowings 200,764 216,423 264,983 252,671 214,054
Shareholders'
equity 258,566 252,704 250,622 241,043 239,418
Market value
per common
share $ 24.68 $ 30.63 $ 28.07 $ 26.90 $ 24.63
Book value
per common
share 16.62 16.27 16.14 15.53 15.45
Tangible book
value per
common
share 10.33 9.94 9.78 9.14 9.02
Shareholders'
equity to
assets
(actual) 9.39% 9.68% 9.90% 9.63% 9.54%
Tangible
capital
ratio 6.05% 6.14% 6.24% 5.90% 5.80%
Leverage
ratio 8.85% 8.60% 8.79% 8.67% 8.59%
Detail of
Loans by
Category
---------
Commercial,
financial,
agricul-
tural $ 243,274 $ 236,741 $ 231,361 $ 230,890 $ 206,914
Lease
financing 3,833 4,234 4,617 5,284 6,548
Real estate -
construction 231,311 242,669 234,667 229,969 196,228
Real estate -
1-4 family
mortgages 654,604 636,060 614,143 593,174 578,931
Real estate -
commercial
mortgages 676,015 629,354 599,314 594,121 595,589
Installment
loans to
individuals 80,762 77,704 77,740 76,423 80,269
----------- ----------- ----------- ----------- -----------
Loans, net
of un-
earned $ 1,889,799 $ 1,826,762 $ 1,761,842 $ 1,729,861 $ 1,664,479
=========== =========== =========== =========== ===========
For the Three Months
Ended March 31,
-------------------------------------
1st Qtr 2007-
1st Qtr 2006
Statement of Percent Percent
earnings Variance 2007 2006 Variance
------------ ----------- ----------- ----------- -----------
Interest income
- taxable
equivalent basis 16.11 $ 42,534 $ 36,632 16.11
Interest income 16.45 $ 41,710 $ 35,817 16.45
Interest expense 37.49 21,049 15,309 37.49
----------- ----------- ----------- -----------
Net interest
income 0.75 20,661 20,508 0.75
Provision for
loan losses (29.78) 750 1,068 (29.78)
----------- ----------- ----------- -----------
Net interest
income
after
provision 2.42 19,911 19,440 2.42
Service charges on
deposit accounts 9.49 4,844 4,424 9.49
Fees and
commissions
on loans and
deposits 24.14 3,728 3,003 24.14
Insurance
commissions and
fees (1.46) 810 822 (1.46)
Trust revenue (10.00) 567 630 (10.00)
Gain (loss) on
sale of
securities 276.19 79 21 276.19
Gain on sale of
mortgage loans 50.79 1,146 760 50.79
Other (15.23) 1,503 1,773 (15.23)
----------- ----------- ----------- -----------
Total non-
interest
income 10.88 12,677 11,433 10.88
Salaries and
employee
benefits 5.85 12,927 12,212 5.85
Occupancy and
equipment (1.97) 2,731 2,786 (1.97)
Data processing 22.40 1,202 982 22.40
Amortization of
intangibles (8.58) 394 431 (8.58)
Other (4.25) 5,247 5,480 (4.25)
----------- ----------- ----------- -----------
Total
non-interest
expense 2.79 22,501 21,891 2.79
Income before
income taxes 12.30 10,087 8,982 12.30
Income taxes 25.96 3,125 2,481 25.96
----------- ----------- ----------- -----------
Net income 7.09 $ 6,962 $ 6,501 7.09
=========== =========== =========== ===========
Basic earnings
per share 7.14 $ 0.45 $ 0.42 7.14
Diluted earnings
per share 7.32 0.44 0.41 7.32
Average basic
shares
outstanding 0.48 15,554,515 15,480,536 0.48
Average diluted
shares
outstanding 0.62 15,865,906 15,768,679 0.62
Common shares
outstanding 0.41 15,560,006 15,496,004 0.41
Cash dividend
per common
share 4.35 $ 0.160 $ 0.153 4.35
Performance ratios
------------------
Return on average
shareholders' equity 11.05% 11.00%
Return on average
shareholders' equity,
excluding amortization
expense 11.44% 11.44%
Return on average assets 1.06% 1.07%
Return on average assets,
excluding amortization
expense 1.10% 1.12%
Net interest margin (FTE) 3.67% 3.99%
Yield on earning assets
(FTE) 7.27% 6.86%
Average earning assets to
average assets 89.13% 88.16%
Average loans to average
deposits 86.12% 85.66%
Noninterest income (less
securities gains/
losses) to average assets 1.92% 1.88%
Noninterest expense to
average assets 3.43% 3.61%
Net overhead ratio 1.51% 1.73%
Efficiency ratio (FTE) 65.87% 66.83%
Average balances
----------------
Total assets 8.42 $ 2,663,515 $ 2,456,602 8.42
Earning assets 9.61 2,373,908 2,165,821 9.61
Securities 7.69 444,420 412,670 7.69
Loans, net of
unearned 11.60 1,885,122 1,689,106 11.60
Intangibles (1.76) 98,094 99,854 (1.76)
Non-interest bearing
deposits 0.59 $ 258,071 $ 256,548 0.59
Interest bearing
deposits 12.42 1,899,474 1,689,671 12.42
Total deposits 10.86 2,157,545 1,946,219 10.86
Other borrowings (13.19) 212,762 245,093 (13.19)
Shareholders'
equity 6.55 255,470 239,771 6.55
Asset quality data
------------------
Nonaccrual loans 153.81 $ 6,368 $ 2,509 153.81
Loans 90 past due
or more 153.10 3,913 1,546 153.10
----------- -----------
Non-performing
loans 153.54 10,281 4,055 153.54
Other real estate
owned and
repossessions (26.13) 2,897 3,922 (26.13)
----------- -----------
Non-performing
assets 65.20 $ 13,178 $ 7,977 65.20
=========== ===========
Net loan charge-offs
(recoveries) (79.02) $ 201 $ 958 (79.02)
Allowance for
loan losses 8.71 20,082 18,473 8.71
Non-performing loans /
total loans 0.54% 0.24%
Non-performing assets /
total assets 0.48% 0.32%
Allowance for loan losses
/ total loans 1.06% 1.11%
Allowance for loan losses
/ non-performing loans 195.33% 455.56%
Annualized net loan
charge-offs / average
loans 0.04% 0.23%
Balances at period end
----------------------
Total assets $ 2,754,930 $ 2,509,220 9.79
Earning assets 2,460,185 2,205,706 11.54
Securities 462,588 429,169 7.79
Mortgage loans held for
sale 29,098 34,099 (14.67)
Loans, net of unearned 1,889,799 1,664,479 13.54
Intangibles 97,902 99,575 (1.68)
Non-interest bearing
deposits $ 273,726 $ 272,672 0.39
Interest bearing deposits 1,991,620 1,759,073 13.22
Total deposits 2,265,346 2,031,745 11.50
Other borrowings 200,764 214,054 (6.21)
Shareholders' equity 258,566 239,418 8.00
Market value per common
share $ 24.68 $ 24.63 0.22
Book value per common
share 16.62 15.45 7.55
Tangible book value per
common share 10.33 9.02 14.42
Shareholders' equity to
assets (actual) 9.39% 9.54%
Tangible capital ratio 6.05% 5.80%
Leverage ratio 8.85% 8.59%
Detail of Loans by
Category
------------------
Commercial, financial,
agricultural $ 243,274 $ 206,914 17.57
Lease financing 3,833 6,548 (41.46)
Real estate - construction 231,311 196,228 17.88
Real estate - 1-4 family
mortgages 654,604 578,931 13.07
Real estate - commercial
mortgages 676,015 595,589 13.50
Installment loans to
individuals 80,762 80,269 0.61
----------- -----------
Loans, net of unearned $ 1,889,799 $ 1,664,479 13.54
=========== ===========
*Percent variance not meaningful
Share and per share amounts have been restated to reflect the
three-for-two stock split issued August 28, 2006