RENASANT CORPORATION 
By TUPELO, Miss., July 17, 2012 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced its financial results for the second quarter of 2012. Net income for the second quarter of 2012 was $6,345,000, or basic and diluted earnings per share of $0.25, as compared to $5,757,000, or basic and diluted earnings per share of $0.23, for the second quarter of 2011.
"During the second quarter of 2012 we continued to execute our plan of driving improvement in key areas which should result in sustained long-term profitability. Our second quarter financial results as compared to the same period in 2011 reflects significant growth in loans and noninterest-bearing deposits, a 22 basis point increase in net interest margin, and a 31% increase in noninterest income," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. "In addition, we continued to experience significant improvement in our credit quality metrics as our nonperforming loans and nonperforming assets not covered by loss-share agreements with the FDIC decreased by 42% and 27%, respectively, as compared to the same period in 2011."
Total assets as of June 30, 2012, were approximately $4.112 billion, down slightly from December 31, 2011. The Company's Tier 1 leverage capital ratio was 9.68%, its Tier 1 risk-based capital ratio was 13.14%, and its total risk-based capital ratio was 14.39%. The Company's tangible common equity ratio was 7.65%. All of the Company's regulatory capital ratios continued to be in excess of the regulatory minimums required to be classified as "well-capitalized."
Total loans, which include both loans covered and not covered under FDIC loss-share agreements, were approximately $2.682 billion at June 30, 2012, as compared to $2.563 billion at June 30, 2011, and $2.581 billion at December 31, 2011. Loans not covered under FDIC loss-share agreements were $2.392 billion at June 30, 2012, an increase of 9.5% from June 30, 2011, and 6.7% from December 31, 2011.
"Our annualized loan growth rate of 19.35% during the second quarter of 2012 represents one of the largest percentage increases in loans for a single quarter in the history of our company. Furthermore, we are particularly pleased that each region within our footprint contributed to this growth, which represents our 4th consecutive quarter of net loan growth. With the contribution of each region and the additional loan volume from our de novo operations, we expect net loan growth to remain strong in future quarters," said McGraw.
Total deposits were $3.406 billion at June 30, 2012, as compared to $3.477 billion at June 30, 2011, and $3.412 billion at December 31, 2011. Noninterest-bearing deposits increased $81 million, or 18%, at June 30, 2012, as compared to the same period in 2011 and increased $7.3 million, or 1%, from December 31, 2011. This continued growth in noninterest-bearing deposits, coupled with reductions in borrowed funds, reduced the Company's cost of funds 43 basis points to 0.74% for the second quarter of 2012, as compared to 1.17% for the second quarter of 2011.
Net interest income increased to $33,410,000 for the second quarter of 2012, from $32,622,000 for the second quarter of 2011. Net interest margin was 3.98% for the second quarter of 2012, as compared to 3.76% for the second quarter of 2011.
"The current interest rate environment continues to put pressure on all financial institutions' ability to grow net interest income and net interest margin. Despite this pressure, we have continued to increase our net interest income and net interest margin through the restructuring of our funding mix and through the deployment of cash into higher yielding alternatives," stated McGraw.
Noninterest income was $16,238,000, up 30.7%, for the second quarter of 2012, as compared to $12,423,000 for the second quarter of 2011. Contributing to this year-over-year increase in noninterest income was strong growth in mortgage production and an increase in wealth management income primarily due to the additional revenue from the trust acquisition in the third quarter of 2011. Also in the Company's second quarter 2012 noninterest income was a gain of $869,000 resulting from the sale of securities, as compared to a loss of $258,000 in the second quarter of 2011. The Company sold securities in the second quarter of 2012 because the effective yield had significantly declined as a result of accelerated prepayments. The proceeds from the sale of these securities were primarily deployed to fund the Company's loan growth.
Noninterest expense was $36,710,000 for the second quarter of 2012, as compared to $31,644,000 for the second quarter of 2011. This increase in noninterest expense during the second quarter of 2012, as compared to the second quarter of 2011, is primarily attributable to the additional personnel and facilities costs from the recent de novo branching activities, the previously-disclosed trust acquisition, expenses related to mortgage production, and higher health insurance costs.
The Company's loans and other real estate owned acquired in FDIC-assisted transactions are recorded at fair value. Furthermore, the loss-share agreements with the FDIC, as well as adjustments to the balances of these acquired assets to record them at fair value, mitigate the impact of further losses on these assets. Nonperforming loans and other real estate owned covered under loss-share agreements totaled $65.6 million and $37.9 million, respectively, at June 30, 2012, combining for a decrease of approximately 31% in nonperforming assets subject to FDIC loss-share agreements from June 30, 2011, and a decrease of approximately 22% from December 31, 2011. The remaining information in this release on nonperforming loans, other real estate owned, and the related asset quality ratios exclude the assets covered under loss-share agreements.
Nonperforming loans declined to $29.9 million at June 30, 2012, as compared to $51.9 million at June 30, 2011, and $34.9 million at December 31, 2011. Loans 30 to 89 days past due as a percentage of total loans were 0.60% as of June 30, 2012, as compared to 0.80% as of June 30, 2011, and 0.71% as of December 31, 2011.
The Company's coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 149.45% as of June 30, 2012, as compared to 91.52% as of June 30, 2011, and 127.00% as of December 31, 2011.
The Company recorded a provision for loan losses of $4,700,000 for the second quarter of 2012, as compared to $5,350,000 for the second quarter of 2011. Annualized net charge-offs as a percentage of average loans were 0.62% for the second quarter of 2012, as compared to 0.82% for the second quarter of 2011, and 1.56% for the fourth quarter of 2011. The allowance for loan losses as a percentage of loans was 1.87% at June 30, 2012, as compared to 2.18% at June 30, 2011, and 1.98% at December 31, 2011.
Other real estate owned was $58.4 million at June 30, 2012, as compared to $68.4 million at June 30, 2011, and $70.1 million at December 31, 2011. During the second quarter, the Company sold a total of approximately $7.3 million in other real estate owned and currently has approximately $8.4 million under contract to sell during the third quarter of 2012.
"We continued to capitalize on opportunities in new markets as we entered into the Eastern Tennessee banking market via de novo branching and broke ground on our new Starkville, Mississippi location during the second quarter of 2012," stated McGraw. "Overall, the positive trends we are experiencing in loan growth, change in our funding mix, increases in net interest income and margin, increases in mortgage revenue, as well as a decrease in non-performing assets, have us well positioned for what we believe will be a strong second half of 2012."
CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern on Wednesday, July 18, 2012.
The webcast can be accessed through Renasant's investor relations website at www.renasant.com or https://services.choruscall.com/links/rnst120718.html. To access the conference via telephone, dial 1-877-317-6789 in the United States and request the Renasant Corporation Second Quarter 2012 Earnings Webcast and Conference Call. International participants should dial 1-412-317-6789 to access the conference call.
The webcast will be archived on 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 conference number 10016155 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until 9:00 AM Eastern on July 18, 2013.
ABOUT RENASANT CORPORATION:
Renasant Corporation, a 108-year-old financial services institution, is the parent of Renasant Bank and Renasant Insurance. Renasant has assets of approximately $4.1 billion and operates over 75 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama and Georgia.
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
Vice President Senior Executive Vice President
Director of External Affairs Treasurer
(662) 680-1219 (662) 680-1472
joxford@renasant.com stuartj@renasant.com
RENASANT CORPORATION
--------------------
(Unaudited)
(Dollars in thousands, except per share data)
Q2 2012 - For the Six Months
2012 2011 Q2 2011 Ended June 30,
---- ---- --------------
Second First Fourth Third Second First Percent Percent
Statement of earnings Quarter Quarter Quarter Quarter Quarter Quarter Variance 2012 2011 Variance
--------------------- --------
Interest income - taxable equivalent basis $41,487 $42,001 $42,430 $43,432 $45,291 $45,371 (8.40) $83,488 $90,662 (7.91)
Interest income $39,978 $40,505 $40,970 $41,930 $43,775 $43,803 (8.67) $80,483 $87,578 (8.10)
Interest expense 6,568 7,662 8,475 9,066 11,153 12,707 (41.11) 14,230 23,860 (40.36)
------ ------
Net interest income 33,410 32,843 32,495 32,864 32,622 31,096 2.42 66,253 63,718 3.98
Provision for loan losses 4,700 4,800 6,000 5,500 5,350 5,500 (12.15) 9,500 10,850 (12.44)
------ ------
Net interest income after provision 28,710 28,043 26,495 27,364 27,272 25,596 5.27 56,753 52,868 7.35
Service charges on deposit accounts 4,495 4,525 4,527 4,797 5,082 4,880 (11.55) 9,020 9,962 (9.46)
Fees and commissions on loans and deposits 4,322 3,928 3,794 3,354 3,147 2,964 37.34 8,250 6,111 35.00
Insurance commissions and fees 842 898 812 847 783 832 7.54 1,740 1,615 7.74
Wealth management revenue 1,551 1,942 1,526 1,145 1,140 1,057 36.05 3,493 2,197 58.99
Securities gains (losses) 869 904 - 5,041 (258) 12 (436.82) 1,773 (246) (820.73)
Gain on sale of mortgage loans 2,390 1,281 662 1,371 949 1,151 151.84 3,671 2,100 74.81
Gain on acquisition - - - 570 - 8,774 - - 8,774 (100.00)
Other 1,769 2,909 1,686 1,318 1,580 1,365 11.96 4,678 2,945 58.85
----- -----
Total noninterest income 16,238 16,387 13,007 18,443 12,423 21,035 30.71 32,625 33,458 (2.49)
.
Salaries and employee benefits 19,871 18,649 16,232 17,493 16,173 16,237 22.87 38,520 32,410 18.85
Occupancy and equipment 3,582 3,615 3,522 3,434 3,357 3,218 6.70 7,197 6,575 9.46
Data processing 2,211 2,040 1,925 1,927 1,657 1,788 33.43 4,251 3,445 23.40
Debt extinguishment penalty - 898 - - - 1,903 - 898 1,903 (52.81)
Merger-related expenses - - - 326 - 1,325 - - 1,325 (100.00)
Other real estate 3,370 3,999 3,357 6,336 2,122 3,511 58.81 7,369 5,633 30.82
Amortization of intangibles 349 358 366 351 510 515 (31.57) 707 1,025 (31.02)
Other 7,327 7,062 6,962 7,092 7,825 7,496 (6.36) 14,389 15,321 (6.08)
----- -----
Total noninterest expense 36,710 36,621 32,364 36,959 31,644 35,993 16.01 73,331 67,637 8.42
Income before income taxes 8,238 7,809 7,138 8,848 8,051 10,638 (22.56) 16,047 18,689 (14.14)
Income taxes 1,893 1,835 1,348 2,316 2,294 3,085 (17.48) 3,728 5,379 (30.69)
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Net income $6,345 $5,974 $5,790 $6,532 $5,757 $7,553 10.21 $12,319 $13,310 (7.45)
Basic earnings per share $0.25 $0.24 $0.23 $0.26 $0.23 $0.30 8.70 $0.49 $0.53 (7.55)
Diluted earnings per share 0.25 0.24 0.23 0.26 0.23 0.30 8.70 0.49 0.53 (7.55)
Average basic shares outstanding 25,110,709 25,078,996 25,061,122 25,061,068 25,059,081 25,052,126 0.21 25,094,852 25,055,623 0.16
Average diluted shares outstanding 25,149,360 25,138,213 25,183,114 25,180,923 25,182,503 25,172,410 (0.13) 25,144,134 25,183,215 (0.16)
Common shares outstanding 25,113,894 25,105,732 25,066,068 25,061,068 25,061,068 25,056,431 0.21 25,113,894 25,061,068 0.21
Cash dividend per common share $0.17 $0.17 $0.17 $0.17 $0.17 $0.17 - $0.34 $0.34 -
Performance ratios
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Return on average shareholders' equity 5.19% 4.88% 4.71% 5.36% 4.84% 6.51% 5.03% 5.67%
Return on average shareholders' equity, excluding 5.36% 5.06% 4.89% 5.54% 5.11% 6.78% 5.21% 5.94%
amortization expense
Return on average assets 0.62% 0.57% 0.55% 0.63% 0.54% 0.69% 0.59% 0.62%
Return on average assets, excluding amortization expense 0.64% 0.59% 0.57% 0.65% 0.57% 0.72% 0.61% 0.65%
Net interest margin (FTE) 3.98% 3.85% 3.84% 3.92% 3.76% 3.55% 3.92% 3.65%
Yield on earning assets (FTE) 4.73% 4.71% 4.80% 4.96% 4.99% 4.93% 4.72% 4.96%
Cost of funding 0.74% 0.84% 0.92% 0.99% 1.17% 1.31% 0.79% 1.25%
Average earning assets to average assets 85.39% 84.88% 84.22% 83.95% 84.75% 84.16% 85.13% 84.66%
Average loans to average deposits 76.89% 75.45% 75.83% 76.23% 72.47% 70.20% 76.17% 71.48%
Noninterest income (less securities gains/
losses) to average assets 1.50% 1.47% 1.24% 1.28% 1.18% 1.93% 1.49% 1.56%
Noninterest expense to average assets 3.58% 3.49% 3.08% 3.54% 2.96% 3.30% 3.53% 3.13%
Net overhead ratio 2.08% 2.01% 1.84% 2.26% 1.77% 1.37% 2.05% 1.57%
Efficiency ratio (FTE) 71.76% 72.19% 68.92% 69.99% 67.96% 67.03% 71.98% 67.46%
RENASANT CORPORATION
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(Unaudited)
(Dollars in thousands, except per share data)
Q2 2012 - For the Six Months
2012 2011 Q2 2011 Ended June 30,
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Second First Fourth Third Second First Percent Percent
Average balances Quarter Quarter Quarter Quarter Quarter Quarter Variance 2012 2011 Variance
---------------- -------- ----
Total assets $4,123,373 $4,222,376 $4,172,518 $4,142,851 $4,294,530 $4,423,088 (3.99) $4,172,848 $4,355,810 (4.20)
Earning assets 3,521,099 3,583,957 3,514,110 3,478,054 3,639,696 3,722,419 (3.26) 3,552,528 3,687,507 (3.66)
Securities 793,353 813,826 745,398 796,957 863,735 881,808 (8.15) 803,589 872,701 (7.92)
Loans, net of unearned 2,647,321 2,614,000 2,594,820 2,577,539 2,575,890 2,556,572 2.77 2,630,660 2,572,980 2.24
Intangibles 191,788 192,429 192,611 191,574 191,320 191,740 0.24 191,964 191,529 0.23
Noninterest-bearing deposits $531,209 $534,867 $523,807 $480,699 $468,170 $476,115 13.46 $533,038 $472,116 12.90
Interest-bearing deposits 2,886,878 2,897,750 2,854,146 2,880,248 3,072,809 3,148,481 (6.05) 2,892,314 3,110,450 (7.01)
Total deposits 3,418,087 3,432,617 3,377,953 3,360,947 3,540,979 3,624,596 (3.47) 3,425,352 3,582,566 (4.39)
Borrowed funds 168,856 238,937 260,672 259,387 261,060 290,201 (35.32) 203,897 275,550 (26.00)
Shareholders' equity 492,164 492,092 487,752 483,121 476,896 470,875 3.20 492,164 473,541 3.93
Asset quality data
------------------
Assets not subject to loss share:
Nonaccrual loans $26,099 $26,999 $31,154 $40,363 $42,331 $46,406 (38.35) $26,099 $42,331 (38.35)
Loans 90 past due or more 3,864 3,435 3,760 8,674 9,646 10,839 (59.94) 3,864 9,646 (59.94)
----- ----- ----- ----- ----- ------ ----- -----
Nonperforming loans not subject to loss share 29,963 30,434 34,914 49,037 51,977 57,245 (42.35) 29,963 51,977 (42.35)
Other real estate owned 58,384 64,931 70,079 72,765 68,384 71,415 (14.62) 58,384 68,384 (14.62)
Nonperforming assets not subject to loss share $88,347 $95,365 $104,993 $121,802 $120,361 $128,660 (26.60) $88,347 $120,361 (26.60)
======= =======
Assets subject to loss share:
Nonaccrual loans $65,386 $78,418 $88,034 $84,426 $78,780 $78,909 (17.00) $65,386 $78,780 (17.00)
Loans 90 past due or more 199 1,397 1,134 12,222 10,619 7,817 (98.13) 199 10,619 (98.13)
--- ----- ----- ------ ------ ----- --- ------
Nonperforming loans subject to loss share 65,585 79,815 89,168 96,648 89,399 86,726 (26.64) 65,585 89,399 (26.64)
Other real estate owned 37,951 35,461 43,156 44,021 59,802 59,036 (36.54) 37,951 59,802 (36.54)
Nonperforming assets subject to loss share $103,536 $115,276 $132,324 $140,669 $149,201 $145,762 (30.61) $103,536 $149,201 (30.61)
======== ======== ======== ======== ======== ======== ======== ========
Net loan charge-offs $4,097 $4,964 $10,192 $4,539 $5,284 $3,410 (22.46) $9,061 $8,694 4.22
Allowance for loan losses 44,779 44,176 44,340 48,532 47,571 47,505 (5.87) 44,779 47,571 (5.87)
Nonperforming loans / total loans* 1.25% 1.33% 1.56% 2.22% 2.38% 2.61% 1.25% 2.38%
Nonperforming assets / total assets* 2.15% 2.28% 2.50% 2.94% 2.83% 2.91% 2.15% 2.83%
Allowance for loan losses / total loans* 1.87% 1.94% 1.98% 2.20% 2.18% 2.17% 1.87% 2.18%
Allowance for loan losses / nonperforming loans* 149.45% 145.15% 127.00% 98.97% 91.52% 82.99% 149.45% 91.52%
Annualized net loan charge-offs / average loans* 0.62% 0.76% 1.56% 0.70% 0.82% 0.54% 0.69% 0.68%
Balances at period end
----------------------
Total assets $4,112,377 $4,176,490 $4,202,008 $4,136,474 $4,259,200 $4,422,164 (3.45) $4,112,377 $4,259,200 (3.45)
Earning assets 3,510,654 3,551,252 3,528,980 3,480,982 3,585,441 3,724,108 (2.09) 3,510,654 3,585,441 (2.09)
Securities 676,721 834,419 796,341 718,881 833,710 880,382 (18.83) 676,721 833,710 (18.83)
Mortgage loans held for sale 25,386 25,216 28,222 24,739 11,511 9,399 120.54 25,386 11,511 120.54
Loans not subject to loss share 2,392,349 2,281,957 2,241,622 2,204,955 2,185,490 2,190,376 9.47 2,392,349 2,185,490 9.47
Loans subject to loss share 289,685 318,089 339,462 359,813 377,149 386,811 (23.19) 289,685 377,149 (23.19)
Total loans 2,682,034 2,600,046 2,581,084 2,564,768 2,562,639 2,577,187 4.66 2,682,034 2,562,639 4.66
Intangibles 191,618 191,968 192,326 192,755 191,086 191,581 0.28 191,618 191,086 0.28
Noninterest-bearing deposits $539,237 $535,955 $531,910 $493,130 $458,686 $486,676 17.56 $539,237 $458,686 17.56
Interest-bearing deposits 2,866,959 2,937,211 2,880,327 2,849,225 3,018,733 3,158,198 (5.03) 2,866,959 3,018,733 (5.03)
Total deposits 3,406,196 3,473,166 3,412,237 3,342,355 3,477,419 3,644,874 (2.05) 3,406,196 3,477,419 (2.05)
Borrowed funds 169,979 171,753 254,709 262,569 263,067 260,149 (35.39) 169,979 263,067 (35.39)
Shareholders' equity 491,534 489,611 487,202 487,401 480,135 473,354 2.37 491,534 480,135 2.37
Market value per common share $15.71 $16.28 $15.00 $12.73 $14.49 $16.98 8.42 $15.71 $14.49 8.42
Book value per common share 19.57 19.50 19.44 19.45 19.16 18.89 2.16 19.57 19.16 2.16
Tangible book value per common share 11.94 11.86 11.76 11.76 11.53 11.25 3.54 11.94 11.53 3.54
Shareholders' equity to assets (actual) 11.95% 11.72% 11.59% 11.78% 11.27% 10.70% 11.95% 11.27%
Tangible capital ratio 7.65% 7.47% 7.35% 7.47% 7.11% 6.66% 7.65% 7.11%
Leverage ratio 9.68% 9.38% 9.44% 9.48% 9.10% 8.77% 9.68% 9.10%
Tier 1 risk-based capital ratio 13.14% 13.32% 13.32% 13.63% 13.58% 13.59% 13.14% 13.58%
Total risk-based capital ratio 14.39% 14.58% 14.58% 14.89% 14.83% 14.84% 14.39% 14.83%
*Based on assets not subject to loss share
RENASANT CORPORATION
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(Unaudited)
(Dollars in thousands, except per share data)
Q2 2012 - For the Six Months
2012 2011 Q2 2011 Ended June 30,
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Second First Fourth Third Second First Percent Percent
Loans not subject to loss share by category Quarter Quarter Quarter Quarter Quarter Quarter Variance 2012 2011 Variance
------------------------------------------- ------- ------- ------- ------- ------- ------- -------- ---- ---- --------
Commercial, financial, agricultural $280,515 $263,720 $260,288 $247,950 $243,343 $250,889 15.28 $280,515 $243,343 15.28
Lease financing 245 302 328 350 393 458 (37.66) 245 393 (37.66)
Real estate - construction 73,109 67,223 74,159 75,690 77,224 71,559 (5.33) 73,109 77,224 (5.33)
Real estate - 1-4 family mortgages 771,161 738,765 716,704 712,871 720,451 730,860 7.04 771,161 720,451 7.04
Real estate - commercial mortgages 1,208,057 1,153,423 1,130,143 1,106,037 1,081,801 1,073,561 11.67 1,208,057 1,081,801 11.67
Installment loans to individuals 59,262 58,524 60,000 62,057 62,278 63,049 (4.84) 59,262 62,278 (4.84)
------ ------ ------
Loans, net of
unearned $2,392,349 $2,281,957 $2,241,622 $2,204,955 $2,185,490 $2,190,376 9.47 $2,392,349 $2,185,490 9.47
Loans subject to loss share by category
---------------------------------------
Commercial, financial, agricultural $12,758 $15,206 $17,803 $19,196 $24,233 $22,964 (47.35) $12,758 $24,233 (47.35)
Lease financing - - - - - - - - - -
Real estate - construction 6,093 6,202 7,076 10,811 10,318 13,847 (40.95) 6,093 10,318 (40.95)
Real estate - 1-4 family mortgages 91,605 99,769 107,923 114,228 119,508 123,770 (23.35) 91,605 119,508 (23.35)
Real estate - commercial mortgages 179,160 196,754 206,492 215,370 222,876 226,038 (19.61) 179,160 222,876 (19.61)
Installment loans to individuals 69 158 168 208 214 192 (67.76) 69 214 (67.76)
--- --- --- --- --- ---
Loans, net of
unearned $289,685 $318,089 $339,462 $359,813 $377,149 $386,811 (23.19) $289,685 $377,149 (23.19)
SOURCE Renasant Corporation
