TUPELO, Miss., April 21, 2009 (GLOBE NEWSWIRE) -- Renasant Corporation (Nasdaq:RNST) (the "Company") today announced results for the first quarter of 2009. Net income for the first quarter of 2009 was $6,006,000 compared to $8,277,000 for the first quarter of 2008. Basic earnings per share was $0.29 and diluted earnings per share was $0.28 during the first quarter of 2009 as compared to basic earnings per share of $0.40 and diluted earnings per share of $0.39 for the first quarter of 2008.
"We believe our first quarter earnings results were solid in light of the continuing economic challenges facing our country," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "Highlights of the first quarter of 2009 include record gains on mortgage sales and an increase in our non-interest income while holding total first quarter non-interest expenses relatively flat when compared to the first quarter of 2008."
Total assets as of March 31, 2009 were approximately $3.8 billion, a 2.13% increase since December 31, 2008 and a 2.59% increase from March 31, 2008. Total loans were approximately $2.51 billion at the end of the first quarter of 2009, a slight decrease from $2.53 billion at December 31, 2008 and $2.58 billion at March 31, 2008. Total deposits were $2.69 billion at March 31, 2009, representing a 14.7% increase from December 31, 2008 and a 2.39% increase since March 31, 2008.
"As interest rates in our markets returned to what we deem to be a more rational interest rate environment during the first quarter of 2009, we replaced the alternative funding sources we utilized in 2008 with deposits. As a result, we experienced a double digit increase in deposits," stated McGraw.
As of March 31, 2009, the Company's Tier 1 leverage capital ratio was 8.28%, its Tier 1 risk-based capital ratio was 10.99%, and its total risk-based capital ratio was 12.24%, in each case in excess of regulatory well capitalized thresholds.
"As previously announced, our board declined to accept TARP funding in November 2008. We continue to believe that this was the correct decision as our capital ratios have remained in excess of regulatory well capitalized thresholds," said McGraw. "We will continue to be conservative in our management decisions, and we are committed to growing shareholders' equity to support current and future dividend payments."
Net interest income was $25,313,000 for the first quarter of 2009 compared to $27,157,000 for the same period in 2008. Net interest income for the first quarter of 2008 included approximately $531,000 in interest income from loans accounted for in accordance with AICPA SOP 03-3. Net interest margin was 3.19% for the first quarter of 2009 compared to 3.36% for the fourth quarter of 2008 and 3.52% for the first quarter of 2008. The linked quarter decrease in net interest margin was, in large part, due to the impact of the rate decreases by the Federal Reserve during the fourth quarter of 2008 on our interest-earning assets, which were not completely offset by reductions in our cost of funds. Accelerated prepayments on mortgage-backed securities and calls of government agency securities also contributed to the linked-quarter decline in net interest margin.
"The current low interest rates present a challenging environment to maintain or expand net interest margin. In response to these conditions, we are taking steps to mitigate short-term margin compression and improve net interest margin in the long-term," commented McGraw. "We are implementing interest rate floors on all variable rate loans, and we are continuing our efforts to diversify our funding mix by garnering stable core deposits and reducing our volatile external borrowings."
Non-interest income increased 6.5% to $14,762,000 for the first quarter of 2009 from $13,857,000 for the first quarter of 2008. Growth in non-interest income occurred primarily in the Company's mortgage lending division. The Company's mortgage division achieved record income on mortgage production of approximately $262 million for the first quarter of 2009 as compared to approximately $191 million for the first quarter of 2008. In addition, the Company continued to have strong fee income from multiple sources. Included in other non-interest income for the first quarter of 2009 was a gain of $427,000 within the Company's securities portfolio. During the first quarter of 2008, non-interest income included a $409,000 gain related to the redemption of shares as a result of the Visa initial public offering.
"Mortgage loan refinancing, driven by near record lows in mortgage rates, and increases in volume from our Tennessee markets helped to fuel a record quarter from our mortgage division," stated McGraw.
Non-interest expense was $26,920,000 for the first quarter of 2009 as compared to $26,798,000 for the first quarter of 2008. The increase in noninterest expense is primarily attributable to a $400,000 increase in expenses associated with deposit insurance assessments as a result of the Company's utilization of the assessment credit during 2008.
"During the first quarter of 2009, we had a 4% reduction in our workforce as employee service capacity was greater than projected growth in certain areas. In addition, we renegotiated various contracts with suppliers and vendors while at the same time reducing our non-essential expenses," said McGraw. "These management actions allowed us to offset increases in expenses related to the current economic conditions, namely increases in expenses associated with FDIC assessments and related to other real estate owned."
Annualized net charge-offs as a percentage of average loans were 0.75% for the first quarter of 2009, down from 1.26% for the fourth quarter of 2008 and up from 0.26% for the first quarter of 2008. Non-performing loans as a percentage of total loans were 2.69% at March 31, 2009, as compared to 1.58% at December 31, 2008 and 0.85% at March 31, 2008. The allowance for loan losses as a percentage of loans was 1.40% at March 31, 2009, as compared to 1.38% at December 31, 2008 and 1.06% at March 31, 2008. The Company recorded a provision for loan losses of $5,040,000 for the first quarter of 2009 as compared to $14,979,000 for the fourth quarter of 2008 and $2,625,000 for the first quarter of 2008.
"We have concluded that we are adequately reserved for potential loan losses, absent any unforeseen or extraordinary events," stated McGraw. "As we continue to adjust our loan portfolio concentrations in response to the current economic environment, increase non-interest income, keep non-interest expense growth to a minimum and maintain capital ratios in excess of regulatory well capitalized thresholds; we believe that with these efforts Renasant Corporation will be well positioned for long-term growth and viability."
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 22, 2009, 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 800-599-9816 in the United States and entering the participant passcode 83146297. International participants should dial 617-847-8705 and enter the participant passcode 83146297.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank and Renasant Insurance. Renasant has assets of approximately $3.8 billion and operates 66 banking, mortgage and insurance offices in Mississippi, Tennessee and Alabama.
The Renasant Corporation logo is available at http://www.globenewswire.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)
2009 2008
---------- -------------------------------------------
Statement of First Fourth Third Second First
earnings Quarter Quarter Quarter Quarter Quarter
------------ ---------- ---------- ---------- ---------- ----------
Interest income
- taxable
equivalent
basis $ 44,988 $ 47,989 $ 50,904 $ 51,386 $ 54,324
Interest
income $ 43,910 $ 47,110 $ 50,004 $ 50,465 $ 53,383
Interest
expense 18,597 20,268 22,063 22,963 26,226
---------- ---------- ---------- ---------- ----------
Net interest
income 25,313 26,842 27,941 27,502 27,157
Provision for
loan losses 5,040 14,979 3,000 2,200 2,625
---------- ---------- ---------- ---------- ----------
Net interest
income after
provision 20,273 11,863 24,941 25,302 24,532
Service charges
on deposit
accounts 5,425 5,601 5,861 5,750 5,433
Fees and
commissions on
loans and
deposits 4,682 3,674 4,198 4,481 3,765
Insurance
commissions
and fees 828 868 920 838 857
Trust revenue 491 551 597 670 626
Gain (loss) on
sale of
securities 427 -- -- -- --
Gain on sale of
mortgage loans 1,776 1,263 1,352 1,311 1,521
Other 1,133 794 716 740 1,655
---------- ---------- ---------- ---------- ----------
Total non-
interest
income 14,762 12,751 13,644 13,790 13,857
Salaries and
employee
benefits 14,744 12,583 15,250 14,849 14,718
Occupancy and
equipment 3,249 3,208 3,399 3,413 3,373
Data processing 1,329 1,310 1,289 1,303 1,307
Amortization of
intangibles 501 683 610 578 584
Other 7,097 7,904 7,236 7,555 6,816
---------- ---------- ---------- ---------- ----------
Total non-
interest
expense 26,920 25,688 27,784 27,698 26,798
Income before
income taxes 8,115 (1,074) 10,801 11,394 11,591
Income taxes 2,109 (1,306) 3,243 3,409 3,314
---------- ---------- ---------- ---------- ----------
Net income $ 6,006 $ 232 $ 7,558 $ 7,985 $ 8,277
========== ========== ========== ========== ==========
Basic earnings
per share $ 0.29 $ 0.01 $ 0.36 $ 0.38 $ 0.40
Diluted
earnings per
share 0.28 0.01 0.36 0.38 0.39
Average basic
shares
outstanding 21,067,539 21,039,068 20,980,557 20,946,287 20,878,478
Average diluted
shares
outstanding 21,188,397 21,178,966 21,175,465 21,205,208 21,133,235
Common shares
outstanding 21,067,539 21,067,539 21,013,427 20,954,627 20,930,871
Cash dividend
per common
share $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.17
Performance
ratios
-----------
Return on
average
shareholders'
equity 6.04% 0.23% 7.40% 7.82% 8.21%
Return on
average
shareholders'
equity,
excluding
amortization
expense 6.35% 0.64% 7.76% 8.17% 8.57%
Return on
average assets 0.65% 0.02% 0.80% 0.86% 0.92%
Return on
average
assets,
excluding
amortization
expense 0.68% 0.07% 0.84% 0.89% 0.96%
Net interest
margin (FTE) 3.19% 3.36% 3.45% 3.43% 3.52%
Yield on
earning
assets (FTE) 5.46% 5.81% 6.08% 6.20% 6.81%
Average earning
assets to
average assets 88.85% 88.82% 88.93% 88.83% 88.44%
Average loans
to average
deposits 99.13% 105.30% 104.03% 101.20% 99.90%
Noninterest
income (less
securities
gains/ losses)
to average
assets 1.54% 1.37% 1.45% 1.48% 1.54%
Noninterest
expense to
average assets 2.90% 2.76% 2.95% 2.97% 2.97%
Net overhead
ratio 1.36% 1.39% 1.50% 1.49% 1.43%
Efficiency
ratio (FTE) 65.41% 63.47% 65.40% 65.61% 63.87%
For the Three Months
Q1 2009 - Ended March 31,
Q1 2008 ----------------------------------
Percent Percent
Statement of earnings Variance 2009 2008 Variance
--------------------- ---------- ---------- ---------- ----------
Interest income -
taxable equivalent
basis (17.19) $ 44,988 $ 54,324 (17.19)
Interest income (17.75) $ 43,910 $ 53,383 (17.75)
Interest expense (29.09) 18,597 26,226 (29.09)
---------- ---------- ---------- ----------
Net interest income (6.79) 25,313 27,157 (6.79)
Provision for loan
losses 92.00 5,040 2,625 92.00
---------- ---------- ---------- ----------
Net interest income
after provision (17.36) 20,273 24,532 (17.36)
Service charges on
deposit accounts (0.15) 5,425 5,433 (0.15)
Fees and commissions on
loans and deposits 24.36 4,682 3,765 24.36
Insurance commissions
and fees (3.38) 828 857 (3.38)
Trust revenue (21.57) 491 626 (21.57)
Gain (loss) on sale of
securities 100.00 427 -- 100.00
Gain on sale of
mortgage loans 16.77 1,776 1,521 16.77
Other (31.54) 1,133 1,655 (31.54)
---------- ---------- ---------- ----------
Total non-interest
income 6.53 14,762 13,857 6.53
Salaries and employee
benefits 0.18 14,744 14,718 0.18
Occupancy and equipment (3.68) 3,249 3,373 (3.68)
Data processing 1.68 1,329 1,307 1.68
Amortization of
intangibles (14.21) 501 584 (14.21)
Other 4.12 7,097 6,816 4.12
---------- ---------- ---------- ----------
Total non-interest
expense 0.46 26,920 26,798 0.46
Income before income
taxes (29.99) 8,115 11,591 (29.99)
Income taxes (36.36) 2,109 3,314 (36.36)
---------- ---------- ---------- ----------
Net income (27.44) $ 6,006 $ 8,277 (27.44)
========== ========== ========== ==========
Basic earnings per
share (27.50) $ 0.29 $ 0.40 (27.50)
Diluted earnings per
share (28.21) 0.28 0.39 (28.21)
Average basic shares
outstanding 0.91 21,067,539 20,878,478 0.91
Average diluted shares
outstanding 0.26 21,188,397 21,133,235 0.26
Common shares
outstanding 0.65 21,067,539 20,930,871 0.65
Cash dividend per
common share -- $ 0.17 $ 0.17 --
Performance ratios
------------------
Return on average
shareholders' equity 6.04% 8.21%
Return on average
shareholders' equity,
excluding amortization
expense 6.35% 8.57%
Return on average
assets 0.65% 0.92%
Return on average
assets, excluding
amortization expense 0.68% 0.96%
Net interest margin
(FTE) 3.19% 3.52%
Yield on earning assets
(FTE) 5.46% 6.81%
Average earning assets
to average assets 88.85% 88.44%
Average loans to
average deposits 99.13% 99.90%
Noninterest income
(less securities
gains/losses) to
average assets 1.54% 1.54%
Noninterest expense to
average assets 2.90% 2.97%
Net overhead ratio 1.36% 1.43%
Efficiency ratio (FTE) 65.41% 63.87%
*Percent variance not meaningful
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
2009 2008
---------- -------------------------------------------
Average First Fourth Third Second First
balances Quarter Quarter Quarter Quarter Quarter
--------- ---------- ---------- ---------- ---------- ----------
Total assets $3,763,245 $3,697,726 $3,744,069 $3,752,401 $3,629,623
Earning assets 3,343,699 3,284,282 3,329,651 3,333,176 3,210,112
Securities 696,068 713,108 735,977 704,694 555,174
Loans, net of
unearned 2,587,436 2,551,660 2,571,069 2,611,843 2,631,101
Intangibles 193,067 193,671 194,382 195,949 197,036
Non-interest
bearing
deposits $ 299,265 $ 289,079 $ 287,197 $ 298,692 $ 293,528
Interest
bearing
deposits 2,250,324 2,106,341 2,143,680 2,233,380 2,301,291
Total
deposits 2,549,589 2,395,420 2,430,877 2,532,072 2,594,819
Other
borrowings 815,548 856,057 871,744 774,052 587,957
Shareholders'
equity 403,229 407,286 406,571 410,780 405,355
Asset quality
data
-------------
Nonaccrual
loans $ 47,591 $ 35,661 $ 20,578 $ 17,659 $ 16,090
Loans 90 past
due or more 19,789 4,252 9,077 8,962 5,888
---------- ---------- ---------- ---------- ----------
Non-performing
loans 67,380 39,913 29,655 26,621 21,978
Other real
estate owned
and
repossessions 25,318 25,111 21,901 13,111 12,802
---------- ---------- ---------- ---------- ----------
Non-performing
assets $ 92,698 $ 65,024 $ 51,556 $ 39,732 $ 34,780
========== ========== ========== ========== ==========
Net loan
charge-offs
(recoveries) $ 4,764 $ 8,098 $ 1,624 $ 2,823 $ 1,726
Allowance for
loan losses 35,181 34,905 28,024 26,647 27,271
Non-performing
loans / total
loans 2.69% 1.58% 1.17% 1.05% 0.85%
Non-performing
assets / total
assets 2.44% 1.75% 1.38% 1.05% 0.94%
Allowance for
loan losses /
total loans 1.40% 1.38% 1.11% 1.05% 1.06%
Allowance for
loan losses /
non-performing
loans 52.21% 87.45% 94.50% 100.10% 124.08%
Annualized net
loan
charge-offs /
average loans 0.75% 1.26% 0.25% 0.43% 0.26%
Balances at
period end
-----------
Total assets $3,795,217 $3,715,980 $3,725,209 $3,782,196 $3,699,276
Earning assets 3,368,962 3,286,764 3,284,813 3,339,511 3,267,329
Securities 709,950 695,106 708,406 741,154 636,338
Mortgage loans
held for sale 55,194 41,805 35,976 43,487 33,062
Loans, net of
unearned 2,506,780 2,530,886 2,525,424 2,541,012 2,580,911
Intangibles 192,822 193,323 194,022 194,688 196,264
Non-interest
bearing
deposits $ 303,536 $ 284,227 $ 287,850 $ 305,877 $ 304,171
Interest
bearing
deposits 2,385,769 2,060,104 2,124,318 2,161,301 2,322,471
Total
deposits 2,689,305 2,344,331 2,412,168 2,467,178 2,626,642
Other
borrowings 672,130 933,976 870,326 878,813 623,906
Shareholders'
equity 400,095 400,371 406,267 403,795 409,827
Market value
per common
share $ 12.56 $ 17.03 $ 21.71 $ 14.73 $ 22.50
Book value per
common share 18.99 19.00 19.33 19.27 19.58
Tangible book
value per
common share 9.84 9.83 10.10 9.98 10.20
Shareholders'
equity to
assets
(actual) 10.54% 10.77% 10.91% 10.68% 11.08%
Tangible
capital ratio 5.75% 5.88% 6.01% 5.83% 6.10%
Leverage ratio 8.28% 8.34% 8.30% 8.12% 8.23%
Tier 1 risk-
based capital
ratio 10.99% 10.85% 10.81% 10.49% 10.03%
Total risk-
based capital
ratio 12.24% 12.10% 11.84% 11.45% 11.00%
Detail of Loans
by Category
---------------
Commercial,
financial,
agricultural $ 301,899 $ 312,648 $ 299,233 $ 303,385 $ 310,497
Lease financing 1,434 1,746 1,943 2,130 2,304
Real estate -
construction 210,747 241,818 241,661 335,430 385,957
Real estate -
1-4 family
mortgages 872,796 886,380 877,045 857,165 846,626
Real estate -
commercial
mortgages 1,055,537 1,015,894 1,032,797 972,111 954,131
Installment
loans to
individuals 64,367 72,400 72,745 70,791 81,396
---------- ---------- ---------- ---------- ----------
Loans, net of
unearned $2,506,780 $2,530,886 $2,525,424 $2,541,012 $2,580,911
========== ========== ========== ========== ==========
For the Three Months
Q1 2009 - Ended March 31,
Q1 2008 ----------------------------------
Percent Percent
Average balances Variance 2009 2008 Variance
---------------- ---------- ---------- ---------- ----------
Total assets 3.68 $3,763,245 $3,629,623 3.68
Earning assets 4.16 3,343,699 3,210,112 4.16
Securities 25.38 696,068 555,174 25.38
Loans, net of unearned (1.66) 2,587,436 2,631,101 (1.66)
Intangibles (2.01) 193,067 197,036 (2.01)
Non-interest bearing
deposits 1.95 $ 299,265 $ 293,528 1.95
Interest bearing
deposits (2.21) 2,250,324 2,301,291 (2.21)
Total deposits (1.74) 2,549,589 2,594,819 (1.74)
Other borrowings 38.71 815,548 587,957 38.71
Shareholders' equity (0.52) 403,229 405,355 (0.52)
Asset quality data
------------------
Nonaccrual loans 195.78 $ 47,591 $ 16,090 195.78
Loans 90 past due or
more 236.09 19,789 5,888 236.09
---------- ----------
Non-performing loans 206.58 67,380 21,978 206.58
Other real estate owned
and repossessions 97.77 25,318 12,802 97.77
---------- ----------
Non-performing assets 166.53 $ 92,698 $ 34,780 166.53
========== ==========
Net loan charge-offs
(recoveries) 176.01 $ 4,764 $ 1,726 176.01
Allowance for loan
losses 29.01 35,181 27,271 29.01
Non-performing loans /
total loans 2.69% 0.85%
Non-performing assets /
total assets 2.44% 0.94%
Allowance for loan
losses / total loans 1.40% 1.06%
Allowance for loan
losses /
non-performing loans 52.21% 124.08%
Annualized net loan
charge-offs /
average loans 0.75% 0.26%
Balances at period end
----------------------
Total assets $3,795,217 $3,699,276 2.59
Earning assets 3,368,962 3,267,329 3.11
Securities 709,950 636,338 11.57
Mortgage loans held for
sale 55,194 33,062 66.94
Loans, net of unearned 2,506,780 2,580,911 (2.87)
Intangibles 192,822 196,264 (1.75)
Non-interest bearing
deposits $ 303,536 $ 304,171 (0.21)
Interest bearing
deposits 2,385,769 2,322,471 2.73
Total deposits 2,689,305 2,626,642 2.39
Other borrowings 672,130 623,906 7.73
Shareholders' equity 400,095 409,827 (2.37)
Market value per common
share $ 12.56 $ 22.50 (44.18)
Book value per common
share 18.99 19.58 (3.01)
Tangible book value per
common share 9.84 10.20 (3.57)
Shareholders' equity to
assets (actual) 10.54% 11.08%
Tangible capital ratio 5.75% 6.10%
Leverage ratio 8.28% 8.23%
Tier 1 risk-based
capital ratio 10.99% 10.03%
Total risk-based
capital ratio 12.24% 11.00%
Detail of Loans by
Category
------------------
Commercial, financial,
agricultural $ 301,899 $ 310,497 (2.77)
Lease financing 1,434 2,304 (37.76)
Real estate -
construction 210,747 385,957 (45.40)
Real estate - 1-4
family mortgages 872,796 846,626 3.09
Real estate -
commercial mortgages 1,055,537 954,131 10.63
Installment loans to
individuals 64,367 81,396 (20.92)
---------- ----------
Loans, net of unearned $2,506,780 $2,580,911 (2.87)
========== ==========
*Percent variance not meaningful