Renasant Corporation Announces 26% Increase in 2013 Second Quarter Earnings

TUPELO, Miss., July 16, 2013 /PRNewswire/ -- Renasant Corporation (NASDAQ: RNST) (the "Company") today announced its financial results for the second quarter of 2013.  Net income increased 26% for the second quarter of 2013 to $8,019,000, or basic and diluted earnings per share of $0.32, as compared to $6,345,000, or basic and diluted earnings per share of $0.25, for the second quarter of 2012. The Company's net income and earnings per share for the second quarter of 2013 included pre-tax expenses related to the pending merger with First M&F Corporation of $385,000. Excluding the Company's merger related expenses, earnings per share, both basic and diluted, were $0.33 for the second quarter of 2013.

(Logo: http://photos.prnewswire.com/prnh/20130207/CL56161LOGO )

"Our second quarter results reflect our continued efforts to grow net income, which increased for the sixth consecutive quarter. Over the last year, we achieved double-digit loan growth while at the same time growing net interest and noninterest income. Additionally, we experienced a 37% decline in nonperforming assets resulting in improvements to our credit related costs," commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw.  

Total assets as of June 30, 2013, were approximately $4.24 billion, up 3.16% from June 30, 2012, and 1.53% from December 31, 2012.  As of June 30, 2013, the Company's Tier 1 leverage capital ratio was 9.83%, its Tier 1 risk-based capital ratio was 12.87%, and its total risk-based capital ratio was 14.14%. The Company's tangible common equity ratio was 7.66%. All of the Company's regulatory capital ratios increased on a linked quarter basis and continue 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 $2.88 billion at June 30, 2013, as compared to $2.68 billion at June 30, 2012, and $2.81 billion at December 31, 2012.   Loans not covered under FDIC loss-share agreements were $2.68 billion at June 30, 2013, an increase of 12.15% from June 30, 2012, and 4.27% from December 31, 2012. 

Total deposits were $3.51 billion at June 30, 2013, as compared to $3.41 billion at June 30, 2012, and $3.46 billion at December 31, 2012.  Noninterest-bearing deposits totaled approximately $561.0 million at June 30, 2013, which represents 16% of the Company's total deposits.  The Company's cost of funds was 0.60% for the second quarter of 2013, as compared to 0.74% for the second quarter of 2012, and 0.62% on a linked quarter basis.

Net interest income increased to $34.4 million for the second quarter of 2013, from $33.4 million for the second quarter of 2012, and $33.4 million on a linked quarter basis.  Net interest margin was 3.88% for the second quarter of 2013, as compared to 3.99% for the second quarter of 2012, and 3.89% on a linked quarter basis.

Noninterest income increased 6.4% to $17.3 million for the second quarter of 2013, as compared to $16.3 million for the second quarter of 2012. Contributing to the growth in noninterest income were double-digit increases in mortgage related income, fees and commissions associated with loans and deposits, and wealth management revenue.

Noninterest expense was $37.7 million for the second quarter of 2013, as compared to $36.8 million for the second quarter of 2012. This increase was attributable to the full quarter impact of de novo expenses and merger related expenses offset by a reduction in other real estate owned ("OREO") related expenses.

The Company's loans and OREO acquired in FDIC-assisted transactions are recorded at fair value.  The adjustments to the balances of these acquired assets to record them at fair value, coupled with the loss-sharing agreements with the FDIC, mitigate the impact of further losses on these assets. 

Nonperforming loans and OREO covered under loss-share agreements totaled $47.4 million and $27.8 million, respectively, at June 30, 2013, combining for a decrease of approximately 27.33% in nonperforming assets subject to FDIC loss-share agreements from June 30, 2012, and a decrease of approximately 23.78% from December 31, 2012. The remaining information in this release on nonperforming loans, OREO, and the related asset quality ratios excludes the assets covered under loss-share agreements.

Nonperforming loans declined to $22.5 million at June 30, 2013, as compared to $30.0 million at June 30, 2012, and $30.2 million at December 31, 2012. Loans 30-to-89 days past due as a percentage of total loans were 0.27% as of June 30, 2013, as compared to 0.60% as of June 30, 2012, and 0.31% as of December 31, 2012.

The Company's coverage ratio, or its allowance for loan losses as a percentage of nonperforming loans, was 208.70% as of June 30, 2013, as compared to 149.45% as of June 30, 2012, and 146.90% as of December 31, 2012.   

The Company recorded a provision for loan losses of $3.0 million for the second quarter of 2013, as compared to $4.7 million for the second quarter of 2012. Annualized net charge-offs as a percentage of average loans were 0.35% for the second quarter of 2013, as compared to 0.63% for the second quarter of 2012. The allowance for loan losses as a percentage of loans was 1.75% at June 30, 2013, as compared to 1.87% at June 30, 2012, and 1.72% at December 31, 2012. 

OREO was $33.2 million at June 30, 2013, as compared to $58.4 million at June 30, 2012, and $44.7 million at December 31, 2012.  On a linked quarter basis, OREO decreased approximately $6.5 million, and the Company currently has approximately $5.0 million under contract to sell during the third quarter of 2013. 

"As we move into the second half of the year, we are well positioned to maintain our positive momentum for 2013 and beyond," stated McGraw. "Our pending merger with First M&F Corporation, which we anticipate completing during the third quarter of 2013, will only enhance our strong performance potential.  Last quarter, the shareholders of both companies approved the proposed merger, and we are now waiting on final regulatory approval. Upon completion of the transaction, we will have approximately $5.8 billion in total assets and over 120 locations throughout Mississippi, Tennessee, Alabama and Georgia."

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 17, 2013.

The webcast can be accessed through Renasant's investor relations website at www.renasant.com or http://services.choruscall.com/links/rnst130717.html. To access the conference via telephone, dial 1-888-317-6016 in the United States and request the Renasant Corporation Second Quarter 2013 Earnings Webcast and Conference Call. International participants should dial 1-412-317-6016 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 10030802 or by dialing 1-412-317-0088 internationally and entering the conference number. Telephone replay access is available until 9:00 AM ET on August 1, 2013.

ABOUT RENASANT CORPORATION:

Renasant Corporation, a 109-year-old financial services institution, is the parent of Renasant Bank and Renasant Insurance.  Renasant has assets of approximately $4.2 billion and operates over 85 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	Kevin Chapman
	Vice President	Executive Vice President
	Director of External Affairs	Chief Financial Officer
	[phone]	[phone]
	[e-mail]	[e-mail]

 

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																	Q2 2013 -		For the Six Months
					2013				2012								Q2 2012		Ended June 30,
					Second		First		Fourth		Third		Second		First		Percent						Percent
Statement of earnings					Quarter		Quarter		Quarter		Quarter		Quarter		Quarter		Variance		2013		2012		Variance
Interest income - taxable equivalent basis					$          41,331		$          40,371		$          41,135		$          40,613		$          41,487		$          42,001		(0.38)		$          81,702		$          83,488		(2.14)
Interest income					$          39,945		$          38,945		$          39,676		$          39,154		$          39,978		$          40,505		(0.08)		$          78,890		$          80,483		(1.98)
Interest expense					5,541		5,564		5,723		6,022		6,568		7,662		(15.64)		11,105		$          14,230		(21.96)
	Net interest income				34,404		33,381		33,953		33,132		33,410		32,843		2.98		67,785		66,253		2.31
Provision for loan losses					3,000		3,050		4,000		4,625		4,700		4,800		(36.17)		6,050		9,500		(36.32)
	Net interest income after provision				31,404		30,331		29,953		28,507		28,710		28,043		9.38		61,735		56,753		8.78
Service charges on deposit accounts					4,509		4,500		4,774		4,818		4,495		4,525		0.31		9,009		9,020		(0.12)
Fees and commissions on loans and deposits					4,848		4,831		4,706		4,639		4,322		3,928		12.17		9,679		8,250		17.32
Insurance commissions and fees					951		861		876		889		882		939		7.82		1,812		1,821		(0.49)
Wealth management revenue					1,715		1,724		1,726		1,707		1,551		1,942		10.57		3,439		3,493		(1.55)
Securities gains (losses)					-		54		121		-		869		904		(100.00)		54		1,773		(96.95)
Gain on sale of mortgage loans					3,870		3,565		4,431		4,397		2,390		1,281		61.92		7,435		3,671		102.53
Gain on acquisition					-		-		-		-		-		-		-		-		-		-
Other					1,424		1,843		1,272		1,605		1,769		2,909		(19.50)		3,267		4,678		(30.16)
	Total noninterest income				17,317		17,378		17,906		18,055		16,278		16,428		6.38		34,695		32,706		6.08
																			.
Salaries and employee benefits					21,906		21,274		21,261		21,221		19,871		18,649		10.24		43,180		38,520		12.10
Data processing					2,045		2,043		2,281		2,192		2,211		2,040		(7.51)		4,088		4,251		(3.83)
Occupancy and equipment					3,668		3,608		3,522		3,886		3,586		3,619		2.29		7,276		7,205		0.99
Other real estate					1,773		2,049		3,787		2,440		3,370		3,999		(47.39)		3,822		7,369		(48.13)
Amortization of intangibles					314		323		333		341		349		358		(10.03)		637		707		(9.90)
Merger-related expenses					385		-		-		-		-		-		-		385		-		-
Debt extinguishment penalty					-		-		-		-		-		898		-		-		898		(100.00)
Other					7,643		8,303		7,147		8,592		7,363		7,099		3.80		15,946		14,462		10.26
	Total noninterest expense				37,734		37,600		38,331		38,672		36,750		36,662		2.68		75,334		73,412		2.62
Income before income taxes					10,987		10,109		9,528		7,890		8,238		7,809		33.37		21,096		16,047		31.46
Income taxes					2,968		2,538		2,247		853		1,893		1,835		56.79		5,506		3,728		47.69
	Net income				$            8,019		$            7,571		$            7,281		$            7,037		$            6,345		$            5,974		26.38		$          15,590		$          12,319		26.55
Basic earnings per share					$              0.32		$              0.30		$              0.29		$              0.28		$              0.25		$              0.24		28.00		$              0.62		$              0.49		26.53
Diluted earnings per share					0.32		0.30		0.29		0.28		0.25		0.24		28.00		0.62		0.49		26.53
Average basic shares outstanding					25,223,749		25,186,229		25,129,932		25,114,672		25,110,709		25,078,996		0.45		25,205,092		25,094,852		0.44
Average diluted shares outstanding					25,373,868		25,288,785		25,259,048		25,220,887		25,149,360		25,138,213		0.89		25,334,898		25,144,134		0.76
Common shares outstanding					25,231,074		25,208,733		25,157,637		25,120,412		25,113,894		25,105,732		0.47		25,231,074		25,113,894		0.47
Cash dividend per common share					$              0.17		$              0.17		$              0.17		$              0.17		$              0.17		$              0.17		-		$              0.34		$              0.34		-
Performance ratios
Return on average shareholders' equity					6.35%		6.12%		5.80%		5.65%		5.19%		4.88%				6.24%		5.03%
Return on average tangible shareholders' equity					10.47%		10.19%		9.73%		9.61%		8.86%		8.39%				10.34%		8.62%
Return on average assets					0.76%		0.73%		0.70%		0.69%		0.62%		0.57%				0.75%		0.59%
Return on average tangible assets					0.82%		0.79%		0.76%		0.75%		0.68%		0.62%				0.80%		0.65%
Net interest margin (FTE)					3.88%		3.89%		3.97%		3.94%		3.99%		3.85%				3.89%		3.92%
Yield on earning assets (FTE)					4.49%		4.51%		4.61%		4.63%		4.74%		4.71%				4.50%		4.73%
Cost of funding					0.60%		0.62%		0.64%		0.68%		0.74%		0.84%				0.61%		0.79%
Average earning assets to average assets					87.32%		86.31%		86.01%		85.62%		85.39%		84.88%				86.82%		85.13%
Average loans to average deposits					80.93%		80.30%		82.21%		81.33%		76.89%		75.45%				80.62%		76.17%
Noninterest income (less securities gains/
	losses) to average assets				1.64%		1.67%		1.71%		1.76%		1.50%		1.48%				1.66%		1.49%
Noninterest expense (less debt prepayment penalties/
	merger-related expenses) to average assets				3.54%		3.63%		3.69%		3.77%		3.58%		3.41%				3.58%		3.49%
Net overhead ratio					1.90%		1.95%		1.98%		2.01%		2.08%		1.93%				1.93%		2.00%
Efficiency ratio (FTE)**					70.33%		72.13%		72.05%		73.46%		73.02%		71.72%				71.22%		72.38%
**Excludes debt extinguishment penalties and merger-related expenses from noninterest expense and profit (loss) on sales of securities and gains on acquisitions from noninterest income

 

 

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																	Q2 2013 -		For the Six Months
					2013				2012								Q2 2012		Ended June 30,
					Second		First		Fourth		Third		Second		First		Percent						Percent
Average balances					Quarter		Quarter		Quarter		Quarter		Quarter		Quarter		Variance		2013		2012		Variance
Total assets					$     4,231,947		$     4,206,411		$     4,128,508		$     4,078,333		$     4,123,373		$     4,222,376		2.63		$     4,219,250		$     4,172,848		1.11
Earning assets					3,695,409		3,630,759		3,551,026		3,491,941		3,521,099		3,583,957		4.95		3,663,263		3,552,508		3.12
Securities					754,515		698,863		665,578		682,123		793,353		813,826		(4.90)		726,843		803,589		(9.55)
Mortgage loans held for sale					32,318		22,347		29,331		24,514		19,237		23,938		68.00		27,360		21,588		26.74
Loans, net of unearned					2,845,260		2,804,618		2,798,591		2,729,503		2,628,084		2,590,062		8.26		2,825,051		2,609,072		8.28
Intangibles					190,362		190,787		191,086		191,442		191,788		192,429		(0.74)		190,573		191,964		(0.72)
																							-
Noninterest-bearing deposits					$        562,104		$        549,514		$        564,440		$        543,767		$        531,209		$        534,867		5.82		$        555,844		$        533,038		4.28
Interest-bearing deposits					2,953,435		2,943,247		2,839,709		2,812,140		2,886,878		2,897,750		2.31		2,948,369		2,892,314		1.94
	Total deposits				3,515,539		3,492,761		3,404,149		3,355,907		3,418,087		3,432,617		2.85		3,504,213		3,425,352		2.30
Borrowed funds					164,894		163,981		175,876		177,016		168,856		238,937		(2.35)		164,440		203,897		(19.35)
Shareholders' equity					506,225		501,634		499,088		495,220		492,164		492,092		2.86		503,942		492,164		2.39
Asset quality data
Assets not subject to loss share:
Nonaccrual loans					$          20,554		$          25,382		$          26,881		$          29,677		$          26,099		$          26,999		(21.25)		$          20,554		$          26,099		(21.25)
Loans 90 past due or more					1,983		2,601		3,307		2,358		3,864		3,435		(48.68)		1,983		3,864		(48.68)
Nonperforming loans					22,537		27,983		30,188		32,035		29,963		30,434		(24.78)		22,537		29,963		(24.78)
Other real estate owned					33,247		39,786		44,717		48,568		58,384		64,931		(43.05)		33,247		58,384		(43.05)
Nonperforming assets not subject to loss share					$          55,784		$          67,769		$          74,905		$          80,603		$          88,347		$          95,365		(36.86)		$          55,784		$          88,347		(36.86)
Assets subject to loss share:
Nonaccrual loans					$          47,281		$          47,972		$          53,186		$          64,080		$          65,386		$          78,418		(27.69)		$          47,281		$          65,386		(27.69)
Loans 90 past due or more					126		-		-		-		199		1,397		(36.68)		126		199		(36.68)
Non-performing loans subject to loss share					47,407		47,972		53,186		64,080		65,585		79,815		(27.72)		47,407		65,585		(27.72)
Other real estate owned					27,835		35,095		45,534		41,615		37,951		35,461		(26.66)		27,835		37,951		(26.66)
Nonperforming assets subject to loss share					$          75,242		$          83,067		$          98,720		$        105,695		$        103,536		$        115,276		(27.33)		$          75,242		$        103,536		(27.33)
Net loan charge-offs (recoveries)					$            2,471		$               893		$            3,722		$            5,335		$            4,097		$            4,964		(39.69)		$            3,364		$            9,061		(62.87)
Allowance for loan losses					47,034		46,505		44,347		44,069		44,779		44,176		5.04		47,034		44,779		5.04
Nonperforming loans / total loans*					0.84%		1.08%		1.17%		1.26%		1.25%		1.33%				0.84%		1.25%
Nonperforming assets / total assets*					1.31%		1.59%		1.79%		1.94%		2.15%		2.28%				1.31%		2.15%
Allowance for loan losses / total loans*					1.75%		1.79%		1.72%		1.74%		1.87%		1.94%				1.75%		1.87%
Allowance for loan losses / nonperforming loans*					208.70%		166.19%		146.90%		137.57%		149.45%		145.15%				208.70%		149.45%
Annualized net loan charge-offs / average loans					0.35%		0.13%		0.53%		0.78%		0.63%		0.77%				0.24%		0.70%
Balances at period end
Total assets					$     4,242,401		$     4,267,658		$     4,178,616		$     4,164,606		$     4,112,377		$     4,176,490		3.16		$     4,242,401		$     4,112,377		3.16
Earning assets					3,715,321		3,706,707		3,588,370		3,595,576		3,511,229		3,551,825		5.81		3,715,321		3,511,229		5.81
Securities					746,530		740,613		674,077		680,679		676,721		834,419		10.32		746,530		676,721		10.32
Mortgage loans held for sale					50,268		26,286		34,845		39,131		25,386		25,216		98.01		50,268		25,386		98.01
Loans not subject to loss share					2,683,017		2,594,438		2,573,165		2,539,618		2,392,349		2,281,957		12.15		2,683,017		2,392,349		12.15
Loans subject to loss share					201,494		213,872		237,088		260,545		289,685		318,089		(30.44)		201,494		289,685		(30.44)
	Total loans				2,884,511		2,808,310		2,810,253		2,800,163		2,682,034		2,600,046		7.55		2,884,511		2,682,034		7.55
Intangibles					190,208		190,522		190,925		191,258		191,618		191,967		(0.74)		190,208		191,618		(0.74)
Noninterest-bearing deposits					$        560,965		$        567,065		$        568,214		$        554,581		$        539,237		$        535,955		4.03		$        560,965		$        539,237		4.03
Interest-bearing deposits					2,944,193		2,988,110		2,893,007		2,841,447		2,866,959		2,937,211		2.69		2,944,193		2,866,959		2.69
	Total deposits				3,505,158		3,555,175		3,461,221		3,396,028		3,406,196		3,473,166		2.91		3,505,158		3,406,196		2.91
Borrowed funds					195,789		164,063		164,706		222,907		169,979		171,753		15.18		195,789		169,979		15.18
Shareholders' equity					500,678		502,375		498,208		496,824		491,534		489,611		1.86		500,678		491,534		1.86
Market value per common share					$            24.34		$            22.38		$            19.14		$            19.61		$            15.71		$            16.28		54.93		$            24.34		$            15.71		54.93
Book value per common share					19.84		19.93		19.80		19.78		19.57		19.50		1.38		19.84		19.57		1.38
Tangible book value per common share					12.31		12.37		12.21		12.16		11.94		11.86		3.10		12.31		11.94		3.10
Shareholders' equity to assets (actual)					11.80%		11.77%		11.92%		11.93%		11.95%		11.72%				11.80%		11.95%
Tangible capital ratio					7.66%		7.65%		7.71%		7.69%		7.65%		7.47%				7.66%		7.65%
Leverage ratio					9.83%		9.79%		9.86%		9.90%		9.68%		9.38%				9.83%		9.68%
Tier 1 risk-based capital ratio					12.87%		12.86%		12.74%		12.73%		13.14%		13.32%				12.87%		13.14%
Total risk-based capital ratio					14.14%		14.13%		14.00%		14.00%		14.39%		14.57%				14.14%		14.39%
*Based on assets not subject to loss share

 

 

RENASANT CORPORATION
(Unaudited)
(Dollars in thousands, except per share data)
																	Q2 2013 -		For the Six Months
					2013				2012								Q2 2012		Ended June 30,
					Second		First		Fourth		Third		Second		First		Percent						Percent
Loans not subject to loss share by category					Quarter		Quarter		Quarter		Quarter		Quarter		Quarter		Variance		2013		2012		Variance
Commercial, financial, agricultural					$        307,718		$        298,013		$        306,250		$        299,774		$        280,515		$        263,720		9.70		$        307,718		$        280,515		9.70
Lease financing					103		162		190		217		245		302		(57.96)		103		245		(57.96)
Real estate - construction					117,339		109,484		104,058		103,522		73,109		67,223		60.50		117,339		73,109		60.50
Real estate - 1-4 family mortgages					859,884		834,204		829,975		801,612		771,161		738,765		11.51		859,884		771,161		11.51
Real estate - commercial mortgages					1,335,402		1,295,213		1,275,482		1,275,386		1,208,057		1,153,423		10.54		1,335,402		1,208,057		10.54
Installment loans to individuals					62,571		57,362		57,210		59,107		59,262		58,524		5.58		62,571		59,262		5.58
	Loans, net of unearned				$     2,683,017		$     2,594,438		$     2,573,165		$     2,539,618		$     2,392,349		$     2,281,957		12.15		$     2,683,017		$     2,392,349		12.15
Loans subject to loss share by category
Commercial, financial, agricultural					$          10,283		$          10,157		$          10,800		$          11,282		$          12,758		$          15,206		(19.40)		$          10,283		$          12,758		(19.40)
Lease financing					-		-		-		-		-		-		-		-		-		-
Real estate - construction					1,648		1,648		1,648		1,932		6,093		6,202		(73)		1,648		6,093		(72.95)
Real estate - 1-4 family mortgages					60,409		65,489		73,448		81,784		91,605		99,769		(34.05)		60,409		91,605		(34.05)
Real estate - commercial mortgages					129,120		136,541		151,161		165,494		179,160		196,754		(27.93)		129,120		179,160		(27.93)
Installment loans to individuals					34		37		31		53		69		158		(50.72)		34		69		(50.72)
	Loans, net of unearned				$        201,494		$        213,872		$        237,088		$        260,545		$        289,685		$        318,089		(30.44)		$        201,494		$        289,685		(30.44)

 

 

 

 

 

SOURCE Renasant Corporation

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