EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

 

Contact:

   John Oxford    Stuart Johnson
   Vice President    Senior Executive Vice President
   Director of External Affairs    Chief Financial Officer
   (662) 680-1219    (662) 680-1472
   joxford@renasant.com    stuartj@renasant.com

RENASANT CORPORATION ANNOUNCES

2008 FIRST QUARTER EARNINGS

TUPELO, MISSISSIPPI (April 15, 2008) – Renasant Corporation (NASDAQ: RNST) (the “Company”) today announced results for the first quarter of 2008. Net income for the first quarter of 2008 was $8,277,000, up 18.9%, from $6,962,000 for the first quarter of 2007. Basic earnings per share were $0.40, down 11.1%, and diluted earnings per share were $0.39, down 11.4%, compared to basic earnings per share of $0.45 and diluted earnings per share of $0.44 for the first quarter of 2007. The decrease in basic and diluted earnings per share was, in part, attributable to the shares issued in connection with the Capital Bancorp, Inc. acquisition, which was completed on July 1, 2007, and the related equity offering in the second quarter of 2007.

“Our first quarter 2008 financial results reflect our ability to meet the challenges offered in the current economic environment,” commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. “Although the Federal Reserve reduced the federal funds target rate 200 basis points during the first quarter of 2008, we experienced only a slight compression in our core net interest margin. Additionally, our mortgage lending division grew noninterest income on record mortgage loan volume even while mortgage loan originations declined nationally.”


Total assets as of March 31, 2008 were $3.7 billion, representing a 2.4% increase from December 31, 2007 and a 34.3% increase since March 31, 2007. Total loans were approximately $2.58 billion at the end of the first quarter of 2008, a slight decrease from $2.59 billion at December 31, 2007 and an increase of 36.6% from $1.89 billion at March 31, 2007. Total deposits grew to $2.63 billion at March 31, 2008, representing a 3.1% increase from December 31, 2007 and a 15.9% increase since March 31, 2007.

Net interest income grew to $27,157,000 for the first quarter of 2008 compared to $20,661,000 for the same period in 2007. Net interest margin was 3.52% for the first quarter of 2008 compared to 3.48% for the fourth quarter of 2007 and 3.67% for the first quarter of 2007. Net interest income for the first quarter of 2008 included approximately $531,000 in interest income from loans accounted for in accordance with AICPA Statement of Position 03-3 which increased net interest margin by 0.07%. Additional interest income from similar loans increased fourth quarter 2007 net interest margin by 0.02% and had no impact on net interest margin in the first quarter of 2007.

Noninterest income increased 9.3% to $13,857,000 for the first quarter of 2008 from $12,677,000 for the first quarter of 2007. Growth in noninterest income occurred primarily in deposit fees and mortgage lending. The Company’s mortgage division achieved record income on mortgage production of approximately $191 million for the first quarter of 2008 as compared to approximately $141 million for the first quarter of 2007. Other noninterest income for the first quarter of 2008 included a $409,000 gain related to the redemption of shares as a result of the Visa initial public offering.

Noninterest expense was $26,798,000 for the first quarter of 2008, up 19.1%, compared to $22,501,000 for the first quarter of 2007.

 


“The increase in noninterest expense during the first quarter of 2008 can be primarily attributed to expenses associated with the addition of Capital’s employees and other costs resulting from the integration of Capital’s operations,” said McGraw.

“We, as with most financial institutions, experienced an increase in nonperforming loans and net charge-offs in the first quarter of 2008. In response, we increased our provision for loan losses during the first quarter of 2008 as compared to previous quarters. Our senior credit officers are closely monitoring all credit relationships so that we can promptly identify problematic loans and mitigate any foreseeable credit issues,” said McGraw.

Annualized net charge-offs as a percentage of average loans were .26% for the first quarter of 2008, down from 0.36% for the fourth quarter of 2007 and up from 0.04% for the first quarter of 2007. Non-performing loans as a percentage of total loans were 0.85% at March 31, 2008, as compared to 0.63% at December 31, 2007 and 0.54% at March 31, 2007. The allowance for loan losses as a percentage of loans was 1.06% at March 31, 2008, as compared to 1.02% at December 31, 2007 and 1.06% at March 31, 2007. The Company recorded a provision for loan losses of $2,625,000 for the first quarter of 2008 as compared to $1,975,000 for the fourth quarter of 2007 and $750,000 for the first quarter of 2007.

“We have implemented strategies to proactively manage the challenges presented by the current economic conditions. Through active and responsive asset and liability management, continued inspection of each construction and land development loan, and by carrying out measures to control noninterest expense, we believe we are positioned to react to today’s ever-challenging economic environment,” 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 16, 2008, 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 888-873-4896 in the United States and entering the participant passcode 55383206. International participants should dial 617-213-8850 and enter the participant passcode 55383206.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank and Renasant Insurance. Renasant has assets of approximately $3.7 billion and operates 67 banking, mortgage and insurance offices in 41 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)

 

    2008     2007     Q1 2008-
Q1 2007
Percent
Variance
    For the Three Months
Ended March 31,
 

Statement of earnings

  First
Quarter
    Fourth
Quarter
    Third
Quarter
    Second
Quarter
    First
Quarter
      2008     2007     Percent
Variance
 

Interest income - taxable equivalent basis

  $ 54,324     $ 57,339     $ 57,571     $ 44,399     $ 42,534     27.72     $ 54,324     $ 42,534     27.72  

Interest income

  $ 53,383     $ 56,316     $ 56,636     $ 43,541     $ 41,710     27.99     $ 53,383     $ 41,710     27.99  

Interest expense

    26,226       29,373       29,938       22,022       21,049     24.59       26,226       21,049     24.59  
                                                                   

Net interest income

    27,157       26,943       26,698       21,519       20,661     31.44       27,157       20,661     31.44  

Provision for loan losses

    2,625       1,975       1,313       800       750     250.00       2,625       750     250.00  
                                                                   

Net interest income after provision

    24,532       24,968       25,385       20,719       19,911     23.21       24,532       19,911     23.21  

Service charges on deposit accounts

    5,433       5,526       5,239       4,919       4,844     12.16       5,433       4,844     12.16  

Fees and commissions on loans and deposits

    3,765       3,834       4,104       4,060       3,728     0.99       3,765       3,728     0.99  

Insurance commissions and fees

    857       891       930       918       810     5.80       857       810     5.80  

Trust revenue

    626       806       806       680       567     10.41       626       567     10.41  

Gain (loss) on sale of securities

    —         —         —         (1 )     79     (100.00 )     —         79     (100.00 )

Gain on sale of mortgage loans

    1,521       1,291       1,201       1,225       1,146     32.72       1,521       1,146     32.72  

Other

    1,655       849       1,166       1,066       1,503     10.11       1,655       1,503     10.11  
                                                                   

Total non-interest income

    13,857       13,197       13,446       12,867       12,677     9.31       13,857       12,677     9.31  

Salaries and employee benefits

    14,718       13,970       15,010       13,083       12,927     13.85       14,718       12,927     13.85  

Occupancy and equipment

    3,373       3,371       3,269       2,836       2,731     23.51       3,373       2,731     23.51  

Data processing

    1,307       993       1,425       1,265       1,202     8.74       1,307       1,202     8.74  

Amortization of intangibles

    584       596       610       391       394     48.22       584       394     48.22  

Other

    6,816       6,513       6,375       5,792       5,247     29.90       6,816       5,247     29.90  
                                                                   

Total non-interest expense

    26,798       25,443       26,689       23,367       22,501     19.10       26,798       22,501     19.10  

Income before income taxes

    11,591       12,722       12,142       10,219       10,087     14.91       11,591       10,087     14.91  

Income taxes

    3,314       3,967       3,845       3,132       3,125     6.05       3,314       3,125     6.05  
                                                                   

Net income

  $ 8,277     $ 8,755     $ 8,297     $ 7,087     $ 6,962     18.89     $ 8,277     $ 6,962     18.89  
                                                                   

Basic earnings per share

  $ 0.40     $ 0.42     $ 0.39     $ 0.42     $ 0.45     (11.11 )   $ 0.40     $ 0.45     (11.11 )

Diluted earnings per share

    0.39       0.41       0.39       0.41       0.44     (11.36 )     0.39       0.44     (11.36 )

Average basic shares outstanding

    20,878,478       20,953,099       21,096,156       17,029,781       15,554,515     34.23       20,878,478       15,554,515     34.23  

Average diluted shares outstanding

    21,133,235       21,297,082       21,437,848       17,292,914       15,865,906     33.20       21,133,235       15,865,906     33.20  

Common shares outstanding

    20,930,871       20,841,365       20,983,501       18,356,974       15,560,006     34.52       20,930,871       15,560,006     34.52  

Cash dividend per common share

  $ 0.170     $ 0.170     $ 0.170     $ 0.160     $ 0.160     6.25     $ 0.170     $ 0.160     6.25  

Performance ratios

                 

Return on average shareholders’ equity

    8.21 %     8.74 %     8.45 %     9.77 %     11.05 %       8.21 %     11.05 %  

Return on average shareholders’ equity, excluding amortization expense

    8.57 %     9.10 %     8.83 %     10.07 %     11.44 %       8.57 %     11.44 %  

Return on average assets

    0.92 %     0.96 %     0.94 %     1.04 %     1.06 %       0.92 %     1.06 %  

Return on average assets, excluding amortization expense

    0.96 %     1.00 %     0.98 %     1.07 %     1.10 %       0.96 %     1.10 %  

Net interest margin (FTE)

    3.52 %     3.48 %     3.52 %     3.66 %     3.67 %       3.52 %     3.67 %  

Yield on earning assets (FTE)

    6.81 %     7.14 %     7.32 %     7.25 %     7.27 %       6.81 %     7.27 %  

Average earning assets to average assets

    88.44 %     88.41 %     88.71 %     89.74 %     89.13 %       88.44 %     89.13 %  

Average loans to average deposits

    99.90 %     99.91 %     94.02 %     87.00 %     86.12 %       99.90 %     86.12 %  

Noninterest income (less securities gains/ losses) to average assets

    1.54 %     1.45 %     1.52 %     1.89 %     1.92 %       1.54 %     1.92 %  

Noninterest expense to average assets

    2.97 %     2.80 %     3.01 %     3.43 %     3.43 %       2.97 %     3.43 %  

Net overhead ratio

    1.43 %     1.35 %     1.49 %     1.54 %     1.51 %       1.43 %     1.51 %  

Efficiency ratio (FTE)

    63.87 %     61.81 %     64.97 %     66.30 %     65.87 %       63.87 %     65.87 %  

 

*Percent variance not meaningful


RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)

 

     2008     2007     Q1 2008-
Q1 2007
Percent
Variance
  For the Three Months
Ended March 31,
 

Average balances

  First
Quarter
    Fourth
Quarter
    Third
Quarter
    Second
Quarter
    First
Quarter
      2008     2007     Percent
Variance
 

Total assets

  $ 3,629,623     $ 3,605,684     $ 3,515,669     $ 2,735,556     $ 2,663,515     36.27   $ 3,629,623     $ 2,663,515     36.27  

Earning assets

    3,210,112       3,187,663       3,118,727       2,454,953       2,373,908     35.22     3,210,112       2,373,908     35.22  

Securities

    555,174       542,235       548,612       476,742       444,420     24.92     555,174       444,420     24.92  

Loans, net of unearned

    2,631,101       2,630,255       2,557,185       1,954,517       1,885,122     39.57     2,631,101       1,885,122     39.57  

Intangibles

    197,036       196,718       194,743       97,697       98,094     100.86     197,036       98,094     100.86  

Non-interest bearing deposits

    293,528       300,782       298,278       257,273       258,071     13.74     293,528       258,071     13.74  

Interest bearing deposits

    2,301,291       2,302,862       2,389,220       1,951,730       1,899,474     21.15     2,301,291       1,899,474     21.15  

Total deposits

    2,594,819       2,603,644       2,687,498       2,209,003       2,157,545     20.27     2,594,819       2,157,545     20.27  

Other borrowings

    587,957       547,946       385,589       201,743       212,762     176.34     587,957       212,762     176.34  

Shareholders’ equity

    405,355       397,516       389,621       291,864       255,470     58.67     405,355       255,470     58.67  

Asset quality data

                 

Nonaccrual loans

  $ 16,090     $ 14,231     $ 12,657     $ 5,905     $ 6,368     152.67   $ 16,090     $ 6,368     152.67  

Loans 90 past due or more

    5,888       2,046       2,125       1,648       3,913     50.47     5,888       3,913     50.47  
                                                           

Non-performing loans

    21,978       16,277       14,782       7,553       10,281     113.77     21,978       10,281     113.77  

Other real estate owned and repossessions

    12,802       8,584       3,168       2,309       2,897     341.91     12,802       2,897     341.91  
                                                           

Non-performing assets

  $ 34,780     $ 24,861     $ 17,950     $ 9,862     $ 13,178     163.92   $ 34,780     $ 13,178     163.92  
                                                           

Net loan charge-offs (recoveries)

  $ 1,726     $ 2,397     $ 377     $ 277     $ 202     754.46   $ 1,726     $ 202     754.46  

Allowance for loan losses

    27,271       26,372       26,926       20,605       20,082     35.80     27,271       20,082     35.80  

Non-performing loans/total loans

    0.85 %     0.63 %     0.57 %     0.38 %     0.54 %       0.85 %     0.54 %  

Non-performing assets/total assets

    0.94 %     0.69 %     0.50 %     0.35 %     0.48 %       0.94 %     0.48 %  

Allowance for loan losses/total loans

    1.06 %     1.02 %     1.04 %     1.04 %     1.06 %       1.06 %     1.06 %  

Allowance for loan losses/non-performing loans

    124.08 %     162.02 %     182.15 %     272.81 %     195.33 %       124.08 %     195.33 %  

Annualized net loan charge-offs/average loans

    0.26 %     0.36 %     0.06 %     0.06 %     0.04 %       0.26 %     0.04 %  

Balances at period end

                 

Total assets

  $ 3,699,276     $ 3,612,287     $ 3,584,519     $ 2,791,295     $ 2,754,930       $ 3,699,276     $ 2,754,930     34.28  

Earning assets

    3,267,329       3,179,153       3,168,182       2,494,569       2,460,185         3,267,329       2,460,185     32.81  

Securities

    636,338       539,590       543,017       460,606       462,588         636,338       462,588     37.56  

Mortgage loans held for sale

    33,062       37,468       25,911       38,048       29,098         33,062       29,098     13.62  

Loans, net of unearned

    2,580,911       2,586,693       2,588,563       1,977,941       1,889,799         2,580,911       1,889,799     36.57  

Intangibles

    196,264       197,314       196,643       97,286       97,902         196,264       97,902     100.47  

Non-interest bearing deposits

  $ 304,171     $ 299,394     $ 315,813     $ 274,336     $ 273,726       $ 304,171     $ 273,726     11.12  

Interest bearing deposits

    2,322,471       2,248,427       2,348,064       1,949,018       1,991,620         2,322,471       1,991,620     16.61  

Total deposits

    2,626,642       2,547,821       2,663,877       2,223,354       2,265,346         2,626,642       2,265,346     15.95  

Other borrowings

    623,906       624,388       483,988       218,045       200,764         623,906       200,764     210.77  

Shareholders’ equity

    409,827       399,073       392,312       316,634       258,566         409,827       258,566     58.50  

Market value per common share

  $ 22.50     $ 21.57     $ 21.63     $ 22.74     $ 24.68       $ 22.50     $ 24.68     (8.83 )

Book value per common share

    19.58       19.15       18.70       17.25       16.62         19.58       16.62     17.83  

Tangible book value per common share

    10.20       9.68       9.32       11.95       10.33         10.20       10.33     (1.18 )

Shareholders’ equity to assets (actual)

    11.08 %     11.05 %     10.94 %     11.34 %     9.39 %       11.08 %     9.39 %  

Tangible capital ratio

    6.10 %     5.91 %     5.78 %     8.14 %     6.05 %       6.10 %     6.05 %  

Leverage ratio

    8.23 %     8.09 %     8.26 %     11.02 %     8.85 %       8.23 %     8.85 %  

Detail of Loans by Category

                 

Commercial, financial, agricultural

  $ 310,497     $ 317,866     $ 336,157     $ 265,062     $ 243,274       $ 310,497     $ 243,274     27.63  

Lease financing

    2,304       2,557       2,906       3,409       3,833         2,304       3,833     (39.89 )

Real estate - construction

    385,957       386,184       401,652       247,241       231,311         385,957       231,311     66.86  

Real estate - 1-4 family mortgages

    846,626       850,658       841,266       669,557       654,604         846,626       654,604     29.33  

Real estate - commercial mortgages

    954,131       948,322       925,001       715,408       676,015         954,131       676,015     41.14  

Installment loans to individuals

    81,396       81,006       81,581       77,264       80,762         81,396       80,762     0.79  
                                                           

Loans, net of unearned

  $ 2,580,911     $ 2,586,593     $ 2,588,563     $ 1,977,941     $ 1,889,799       $ 2,580,911     $ 1,889,799     36.57  
                                                           

 

*Percent variance not meaningful