TUPELO, Miss., July 20 /PRNewswire-FirstCall/ -- Renasant Corporation (the "Company") today announced results for the second quarter of 2010. Net income for the second quarter of 2010 was $3,796,000 as compared to $3,607,000 for the first quarter of 2010 and $4,256,000 for the second quarter of 2009. Basic and diluted earnings per share were $0.18 during the second quarter of 2010 as compared to basic and diluted earnings per share of $0.17 for the first quarter of 2010 and basic and diluted earnings per share of $0.20 for the second quarter of 2009.
"During the first half of 2010, the markets within our footprint have continued to show positive trends. Reflecting this, Toyota announced in May that it will resume completion of its manufacturing facility in North Mississippi, Huntsville saw an expansion within its aerospace and engineering industries and Nashville showed its resilience by quickly rebounding from a catastrophic flood," said Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "Even as the economy has not fully rebounded and many banks continue to struggle, during the second quarter of 2010, we opened two new full service banking locations, added strategic new hires and experienced a linked quarter increase in our net income."
Total assets as of June 30, 2010 were approximately $3.59 billion, a 1.31% decrease since March 31, 2010 and a 1.30% decrease from December 31, 2009. Total deposits were $2.69 billion at June 30, 2010, representing a 0.94% decrease from March 31, 2010 and a 4.35% increase since December 31, 2009. The reduction in total deposits as compared to the previous quarter was due to a reduction in public funds and retail time deposits; however, retail non-time deposits grew 3.24% on a linked quarter basis.
Total loans were approximately $2.26 billion at the end of the second quarter of 2010 as compared to $2.31 billion at March 31, 2010 and $2.35 billion at December 31, 2009. The decrease in loans was attributed to a combination of soft demand for loans within our markets and our continued reduction in the Company's construction and land development loan portfolio. In addition, approximately 67% of the linked quarter reduction in the Company's construction loans was attributable to these loans being converted to permanent financing after completion of the construction phase of the loan.
As of June 30, 2010, the Company's Tier 1 leverage capital ratio was 8.78%, its Tier 1 risk-based capital ratio was 11.42%, and its total risk-based capital ratio was 12.67%. As has been the trend in previous quarters, the Company continued to grow its capital ratios in the second quarter of 2010, keeping them above well capitalized thresholds.
Net interest income was $23,680,000 for the second quarter of 2010 as compared to $24,410,000 for the first quarter of 2010 and $24,160,000 for the second quarter of 2009. Net interest margin was 3.15% for the second quarter of 2010 as compared to 3.27% for the first quarter of 2010 and 3.04% for the second quarter of 2009.
"The decrease in net interest income and net interest margin on a linked quarter basis was attributable not only to a reduction in loan volume but also to $1.2 million in premium amortization related to accelerated prepayments in our mortgage backed securities portfolio due to the recent Fannie Mae and Freddie Mac repurchase program," commented McGraw.
Noninterest income was $14,344,000 for the second quarter of 2010 as compared to $12,484,000 for the first quarter of 2010 and $15,424,000 for the second quarter in 2009. The linked quarter increase in noninterest income is primarily due to an increase in service charges on deposit accounts and a gain from the sale of securities.
Noninterest expense was $26,188,000 for the second quarter of 2010 as compared to $25,634,000 for the first quarter of 2010 and $27,132,000 for the second quarter of 2009. Noninterest expense for the second quarter of 2009 included approximately $1.75 million for the special deposit insurance assessment levied by the FDIC on all insured institutions.
Annualized net charge-offs as a percentage of average loans were 1.21% for the second quarter of 2010, up from 0.81% for the first quarter of 2010 and 0.93% for the second quarter of 2009. The allowance for loan losses as a percentage of loans was 1.82% at June 30, 2010 as compared to 1.78% at March 31, 2010 and 1.67% at December 31, 2009. The Company recorded a provision for loan losses of $7,000,000 for the second quarter of 2010 as compared to $6,665,000 for the first quarter of 2010 and $6,700,000 for the second quarter of 2009.
Non-performing loans (loans 90 days or more past due and nonaccrual loans) were $64,662,000 at June 30, 2010 as compared to $54,604,000 at March 31, 2010, $50,025,000 at December 31, 2009 and $65,501,000 at June 30, 2009. Most of the linked quarter increase in non-performing loans was attributable to the migration of approximately $11 million of troubled debt restructured loans into this category. Furthermore, loans in the 30 to 89 days past due category decreased approximately 15% on a linked quarter basis.
Other real estate owned (OREO) was $66,797,000 on June 30, 2010 as compared to $62,508,000 at March 31, 2010 and $58,568,000 at December 31, 2009. The balance of OREO at June 30, 2010 included a $5.3 million property which was booked and placed under contract to sell during the second quarter. The sale of this property is scheduled to close in July with no additional loss to the Company. As in the previous quarter, the Company's OREO increased as the Company took possession of the real properties securing problem loans in order to control the liquidation of these properties. The Company has an additional $1.8 million in OREO currently under contract to sell which is scheduled to close in the third quarter of 2010.
"Even as the current economy and banking environment remains challenging, we believe our key markets are fundamentally sound and we are optimistic in our outlook for long term success as we continue to position ourselves for opportunities to grow and enhance our franchise," stated McGraw.
CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM EDT on Wednesday, July 21, 2010.
The webcast can be accessed through Renasant's investor relations website at http://www.renasant.com/ or http://www.talkpoint.com/viewer/starthere.asp?Pres=131700. To access the conference via telephone, dial 1-877-317-6789 in the United States and request the Renasant Corporation Second Quarter 2010 Earnings Webcast and Conference Call. International participants should dial 1-412-317-6789 to access the conference call.
The webcast will be archived on http://www.renasant.com/ beginning one hour after the call and will remain accessible for one year. Replays can also be accessed via telephone by dialing 1-877-344-7529 in the United States and entering 442634 or by dialing 1-412-317-0088 internationally and entering 442634. Telephone replay access is available until 9:00 AM EST on October 22, 2010.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank and Renasant Insurance. Renasant has assets of approximately $3.6 billion and operates over 65 banking, mortgage, financial services and insurance offices 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.
Contacts For Media: For Financials: John Oxford Stuart Johnson Senior Executive Vice Vice President President Director of External Affairs Chief Financial Officer (662) 680-1219 (662) 680-1472 joxford@renasant.com stuartj@renasant.com RENASANT CORPORATION -------------------- (Unaudited) (Dollars in thousands, except per share data) 2010 ---- Second First Statement of earnings Quarter Quarter --------------------- Interest income -taxable equivalent basis $39,590 $40,900 Interest income $38,381 $39,708 Interest expense 14,701 15,298 Net interest income 23,680 24,410 Provision for loan losses 7,000 6,665 Net interest income after provision 16,680 17,745 Service charges on deposit accounts 5,361 5,090 Fees and commissions on loans and deposits 3,409 3,721 Insurance commissions and fees 830 834 Trust revenue 632 584 Securities (losses) gains 2,049 (160) Gain on sale of mortgage loans 994 1,329 Other 1,069 1,086 Total non-interest income 14,344 12,484 Salaries and employee benefits 13,052 13,197 Occupancy and equipment 2,926 2,931 Data processing 1,580 1,426 Amortization of intangibles 470 476 Other 8,160 7,604 Total non-interest expense 26,188 25,634 Income before income taxes 4,836 4,595 Income taxes 1,040 988 Net income $3,796 $3,607 ====== ====== Basic earnings per share $0.18 $0.17 Diluted earnings per share 0.18 0.17 Average basic shares outstanding 21,088,942 21,082,991 Average diluted shares outstanding 21,224,836 21,208,934 Common shares outstanding 21,100,130 21,082,991 Cash dividend per common share $0.17 $0.17 Performance ratios ------------------ Return on average shareholders' equity 3.69% 3.55% Return on average shareholders' equity, excluding amortization expense 3.97% 3.84% Return on average assets 0.42% 0.40% Return on average assets, excluding amortization expense 0.45% 0.44% Net interest margin (FTE) 3.15% 3.27% Yield on earning assets (FTE) 5.02% 5.23% Average earning assets to average assets 87.42% 87.28% Average loans to average deposits 84.53% 88.47% Noninterest income (less securities gains/ losses) to average assets 1.36% 1.42% Noninterest expense to average assets 2.90% 2.87% Net overhead ratio 1.54% 1.45% Efficiency ratio (FTE) 66.75% 67.31% 2009 ---- Fourth Third Second First Statement of earnings Quarter Quarter Quarter Quarter ------------ Interest income - taxable equivalent basis $42,526 $43,820 $43,836 $44,988 Interest income $41,331 $42,614 $42,709 $43,910 Interest expense 16,529 17,423 18,549 18,597 Net interest income 24,802 25,191 24,160 25,313 Provision for loan losses 7,800 7,350 6,700 5,040 Net interest income after provision 17,002 17,841 17,460 20,273 Service charges on deposit accounts 5,801 5,379 5,395 5,425 Fees and commissions on loans and deposits 3,554 3,961 4,424 4,682 Insurance commissions and fees 705 949 837 828 Trust revenue 559 501 488 491 Securities (losses) gains 123 - 1,123 427 Gain on sale of mortgage loans 1,665 1,832 2,293 1,776 Other 1,012 1,331 864 1,133 Total non- interest income 13,419 13,953 15,424 14,762 Salaries and employee benefits 13,572 13,363 13,736 14,744 Occupancy and equipment 2,981 3,045 3,063 3,249 Data processing 1,407 1,439 1,430 1,329 Amortization of intangibles 482 489 494 501 Other 7,141 7,782 8,409 7,097 Total non- interest expense 25,583 26,118 27,132 26,920 Income before income taxes 4,838 5,676 5,752 8,115 Income taxes 807 1,451 1,496 2,109 Net income $4,031 $4,225 $4,256 $6,006 ====== ====== ====== ====== Basic earnings per share $0.19 $0.20 $0.20 $0.29 Diluted earnings per share 0.19 0.20 0.20 0.28 Average basic shares outstanding 21,078,873 21,075,879 21,073,228 21,067,539 Average diluted shares outstanding 21,217,841 21,213,839 21,193,560 21,188,397 Common shares outstanding 21,082,991 21,078,828 21,074,568 21,067,539 Cash dividend per common share $0.17 $0.17 $0.17 $0.17 Performance ratios ----------- Return on average shareholders' equity 3.87% 4.12% 4.22% 6.04% Return on average shareholders' equity, excluding amortization expense 4.15% 4.41% 4.52% 6.35% Return on average assets 0.44% 0.46% 0.46% 0.65% Return on average assets, excluding amortization expense 0.47% 0.49% 0.49% 0.68% Net interest margin (FTE) 3.22% 3.22% 3.04% 3.19% Yield on earning assets (FTE) 5.26% 5.33% 5.27% 5.46% Average earning assets to average assets 88.19% 88.73% 89.25% 88.85% Average loans to average deposits 92.96% 94.22% 94.40% 99.13% Noninterest income (less securities gains/ losses) to average assets 1.45% 1.51% 1.53% 1.54% Noninterest expense to average assets 2.79% 2.82% 2.91% 2.90% Net overhead ratio 1.34% 1.31% 1.38% 1.36% Efficiency ratio (FTE) 64.91% 64.73% 66.65% 65.41% Q2 2010 - For the Six Months Q2 2009 Ended June 30, Percent Percent Statement of earnings Variance 2010 2009 Variance ------------ Interest income - taxable equivalent basis (9.69) $80,490 $88,824 (9.38) Interest income (10.13) $78,089 $86,619 (9.85) Interest expense (20.75) 29,999 37,146 (19.24) ------ ------ Net interest income (1.99) 48,090 49,473 (2.80) Provision for loan losses 4.48 13,665 11,740 16.40 ---- ----- Net interest income after provision (4.47) 34,425 37,733 (8.77) Service charges on deposit accounts (0.63) 10,451 10,820 (3.41) Fees and commissions on loans and deposits (22.94) 7,130 9,106 (21.70) Insurance commissions and fees (0.84) 1,664 1,665 (0.06) Trust revenue 29.51 1,216 979 24.21 Securities (losses) gains 82.46 1,889 1,550 21.87 Gain on sale of mortgage loans (56.65) 2,323 4,069 (42.91) Other 23.73 2,155 1,997 7.91 ----- ---- Total non- interest income (7.00) 26,828 30,186 (11.12) Salaries and employee benefits (4.98) 26,249 28,480 (7.83) Occupancy and equipment (4.47) 5,857 6,312 (7.21) Data processing 10.49 3,006 2,759 8.95 Amortization of intangibles (4.86) 946 995 (4.92) Other (2.96) 15,764 15,506 1.66 ----- ---- Total non- interest expense (3.48) 51,822 54,052 (4.13) Income before income taxes (15.92) 9,431 13,867 (31.99) Income taxes (30.48) 2,028 3,605 (43.74) ------ ------ Net income (10.81) $7,403 $10,262 (27.86) ====== ====== ======= ====== Basic earnings per share (10.00) $0.35 $0.49 (28.57) Diluted earnings per share (10.00) 0.35 0.48 (27.08) Average basic shares outstanding 0.07 21,085,983 21,067,539 0.09 Average diluted shares outstanding 0.15 21,219,662 21,188,397 0.15 Common shares outstanding 0.12 21,100,130 21,074,568 0.12 Cash dividend per common share - $0.34 $0.34 - Performance ratios ----------- Return on average shareholders' equity 3.62% 5.13% Return on average shareholders' equity, excluding amortization expense 3.90% 5.44% Return on average assets 0.41% 0.55% Return on average assets, excluding amortization expense 0.45% 0.58% Net interest margin (FTE) 3.21% 3.12% Yield on earning assets (FTE) 5.13% 5.37% Average earning assets to average assets 87.37% 88.91% Average loans to average deposits 86.47% 96.72% Noninterest income (less securities gains/ losses) to average assets 1.39% 1.54% Noninterest expense to average assets 2.89% 2.91% Net overhead ratio 1.50% 1.37% Efficiency ratio (FTE) 67.02% 66.03% *Percent variance not meaningful RENASANT CORPORATION -------------------- (Unaudited) (Dollars in thousands, except per share data) 2010 ---- Second First Average balances Quarter Quarter ---------------- Total assets $3,616,125 $3,621,361 Earning assets 3,161,214 3,160,620 Securities 734,690 697,913 Loans, net of unearned 2,304,663 2,354,443 Intangibles 190,639 190,881 Non-interest bearing deposits $315,242 $310,726 Interest bearing deposits 2,387,175 2,332,741 Total deposits 2,702,417 2,643,467 Borrowed funds 468,196 530,654 Shareholders' equity 412,959 412,132 Asset quality data ------------------ Nonaccrual loans $53,868 $44,688 Loans 90 past due or more 10,794 9,916 ------ ----- Non-performing loans 64,662 54,604 Other real estate owned and repossessions 66,797 62,508 Non-performing assets $131,459 $117,112 ======== ======== Net loan charge-offs (recoveries) $6,948 $4,716 Allowance for loan losses 41,146 41,094 Non-performing loans / total loans 2.86% 2.37% Non-performing assets / total assets 3.66% 3.22% Allowance for loan losses /total loans 1.82% 1.78% Allowance for loan losses /non- performing loans 63.63% 75.26% Annualized net loan charge-offs /average loans 1.21% 0.81% Balances at period end ---------------------- Total assets $3,593,872 $3,641,709 Earning assets 3,156,451 3,200,159 Securities 721,640 741,207 Mortgage loans held for sale 21,261 16,597 Loans, net of unearned 2,263,263 2,308,335 Intangibles 190,411 190,881 Non-interest bearing deposits $313,309 $315,064 Interest bearing deposits 2,374,903 2,398,784 Total deposits 2,688,212 2,713,848 Borrowed funds 459,762 483,183 Shareholders' equity 412,235 410,557 Market value per common share $14.35 $16.18 Book value per common share 19.54 19.47 Tangible book value per common share 10.51 10.42 Shareholders' equity to assets (actual) 11.47% 11.27% Tangible capital ratio 6.52% 6.37% Leverage ratio 8.78% 8.74% Tier 1 risk-based capital ratio 11.42% 11.20% Total risk-based capital ratio 12.67% 12.45% Detail of Loans by Category ------------------ Commercial, financial, agricultural $273,356 $276,749 Lease financing 601 677 Real estate - construction 62,469 110,121 Real estate -1-4 family mortgages 798,185 809,271 Real estate -commercial mortgages 1,071,876 1,055,102 Installment loans to individuals 56,776 56,415 ------ ------ Loans, net of unearned $2,263,263 $2,308,335 2009 ---- Fourth Third Second First Average balances Quarter Quarter Quarter Quarter ---------------- Total assets $3,640,514 $3,675,592 $3,738,852 $3,763,245 Earning assets 3,210,554 3,261,527 3,337,103 3,343,699 Securities 719,298 703,976 701,894 696,068 Loans, net of unearned 2,397,195 2,465,298 2,542,021 2,587,436 Intangibles 191,591 192,078 192,568 193,067 Non-interest bearing deposits $307,753 $297,390 $293,546 $299,265 Interest bearing deposits 2,247,854 2,286,184 2,342,788 2,250,324 Total deposits 2,555,607 2,583,574 2,636,334 2,549,589 Borrowed funds 632,689 647,919 662,387 815,548 Shareholders' equity 413,773 406,779 404,456 403,229 Asset quality data ------------------ Nonaccrual loans $39,454 $37,995 $55,217 $47,591 Loans 90 past due or more 10,571 10,661 10,284 19,789 ------ ------ ------ ------ Non-performing loans 50,025 48,656 65,501 67,380 Other real estate owned and repossessions 58,568 47,457 30,546 25,318 Non-performing assets $108,593 $96,113 $96,047 $92,698 Net loan charge-offs (recoveries) $5,007 $6,962 $5,917 $4,764 Allowance for loan losses 39,145 36,352 35,964 35,181 Non-performing loans / total loans 2.13% 2.03% 2.65% 2.69% Non-performing assets / total assets 2.98% 2.64% 2.59% 2.44% Allowance for loan losses /total loans 1.67% 1.51% 1.46% 1.40% Allowance for loan losses /non- performing loans 78.25% 74.71% 54.91% 52.21% Annualized net loan charge-offs /average loans 0.83% 1.12% 0.93% 0.75% Balances at period end ---------------------- Total assets $3,641,081 $3,642,657 $3,701,957 $3,795,217 Earning assets 3,173,039 3,188,554 3,236,615 3,368,962 Securities 714,164 738,204 684,723 709,950 Mortgage loans held for sale 25,749 24,091 49,565 55,194 Loans, net of unearned 2,347,615 2,402,423 2,468,844 2,506,780 Intangibles 191,357 191,839 192,328 192,822 Non-interest bearing deposits $304,962 $297,858 $292,129 $303,536 Interest bearing deposits 2,271,138 2,263,126 2,308,081 2,385,769 Total deposits 2,576,100 2,560,984 2,600,210 2,689,305 Borrowed funds 618,024 635,076 665,755 672,130 Shareholders' equity 410,122 410,473 400,680 400,095 Market value per common share $13.60 $14.85 $15.02 $12.56 Book value per common share 19.45 19.47 19.01 18.99 Tangible book value per common share 10.38 10.37 9.89 9.84 Shareholders' equity to assets (actual) 11.26% 11.27% 10.82% 10.54% Tangible capital ratio 6.34% 6.34% 5.94% 5.75% Leverage ratio 8.68% 8.56% 8.37% 8.28% Tier 1 risk-based capital ratio 11.12% 11.04% 10.92% 11.00% Total risk-based capital ratio 12.37% 12.29% 12.17% 12.25% Detail of Loans by Category ------------------ Commercial, financial, agricultural $281,329 $280,930 $292,177 $301,899 Lease financing 778 936 1,283 1,434 Real estate - construction 133,299 153,367 180,202 210,747 Real estate -1-4 family mortgages 820,917 848,267 878,263 872,796 Real estate -commercial mortgages 1,040,589 1,048,135 1,054,169 1,055,537 Installment loans to individuals 70,703 70,788 62,750 64,367 ------ ------ ------ ------ Loans, net of unearned $2,347,615 $2,402,423 $2,468,844 $2,506,780 Q2 2010 - For the Six Months Q2 2009 Ended June 30, Average balances Percent Percent Variance 2010 2009 Variance -------- --------- -------- -------- Total assets (3.28) $3,617,888 $3,750,916 (3.55) Earning assets (5.27) 3,160,918 3,334,954 (5.22) Securities 4.67 716,403 693,569 3.29 Loans, net of unearned (9.34) 2,329,415 2,564,603 (9.17) Intangibles (1.00) 190,875 192,816 (1.01) Non-interest bearing deposits 7.39 $312,878 $296,373 5.57 Interest bearing deposits 1.89 2,360,108 2,296,812 2.76 Total deposits 2.51 2,672,986 2,593,185 3.08 Borrowed funds (29.32) 499,252 738,544 (32.40) Shareholders' equity 2.10 412,589 403,141 2.34 Asset quality data ------------------ Nonaccrual loans (2.44) $53,868 $55,217 (2.44) Loans 90 past due or more 4.96 10,794 10,284 4.96 ------ ------ Non-performing loans (1.28) 64,662 65,501 (1.28) Other real estate owned and repossessions 118.68 66,797 30,546 118.68 Non-performing assets 36.87 $131,459 $96,047 36.87 Net loan charge-offs (recoveries) 17.42 $11,664 $10,681 9.20 Allowance for loan losses 14.41 41,146 35,964 14.41 Non-performing loans / total loans 2.86% 2.65% Non-performing assets / total assets 3.66% 2.59% Allowance for loan losses /total loans 1.82% 1.46% Allowance for loan losses /non- performing loans 63.63% 54.91% Annualized net loan charge-offs /average loans 1.01% 0.84% Balances at period end ---------------------- Total assets $3,593,872 $3,701,957 (2.92) Earning assets 3,156,451 3,236,615 (2.48) Securities 721,640 684,723 5.39 Mortgage loans held for sale 21,261 49,565 (57.10) Loans, net of unearned 2,263,263 2,468,844 (8.33) Intangibles 190,411 192,328 (1.00) Non-interest bearing deposits $313,309 $292,129 7.25 Interest bearing deposits 2,374,903 2,308,081 2.90 Total deposits 2,688,212 2,600,210 3.38 Borrowed funds 459,762 665,755 (30.94) Shareholders' equity 412,235 400,680 2.88 Market value per common share $14.35 $15.02 (4.46) Book value per common share 19.54 19.01 2.76 Tangible book value per common share 10.51 9.89 6.34 Shareholders' equity to assets (actual) 11.47% 10.82% Tangible capital ratio 6.52% 5.94% Leverage ratio 8.78% 8.37% Tier 1 risk-based capital ratio 11.42% 10.92% Total risk-based capital ratio 12.67% 12.17% Detail of Loans by Category ------------------ Commercial, financial, agricultural $273,356 $292,177 (6.44) Lease financing 601 1,283 (53.16) Real estate - construction 62,469 180,202 (65.33) Real estate -1-4 family mortgages 798,185 878,263 (9.12) Real estate -commercial mortgages 1,071,876 1,054,169 1.68 Installment loans to individuals 56,776 62,750 (9.52) ------ ------ Loans, net of unearned $2,263,263 $2,468,844 (8.33) *Percent variance not meaningful
Renasant Corporation
CONTACT: For Media: John Oxford, Vice President, Director of External
Affairs, +1-662-680-1219, joxford@renasant.com, For Financials: Stuart
Johnson, Senior Executive Vice President, Chief Financial Officer,
+1-662-680-1472, stuartj@renasant.com
Web Site: http://www.renasant.com/
