RENASANT CORPORATION 
By 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
(662) 680-1219 (662) 680-1450
joxford@renasant.com kchapman@renasant.com
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)
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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
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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
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(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
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(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
