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Renasant Corp. Reports Operating Results (10-Q)

August 10, 2009 | About:

Renasant Corp. (RNST) filed Quarterly Report for the period ended 2009-06-30.

Renasant Corporation is the parent of Renasant Bank and Renasant Insurance Inc. Renasant Corp. has a market cap of $326 million; its shares were traded at around $15.47 with a P/E ratio of 18.2 and P/S ratio of 1.3. The dividend yield of Renasant Corp. stocks is 4.4%. Renasant Corp. had an annual average earning growth of 11.3% over the past 10 years. GuruFocus rated Renasant Corp. the business predictability rank of 4.5-star.

Highlight of Business Operations:

Cash and cash equivalents increased $43,885 from $100,394 at December 31, 2008 to $144,279 at June 30, 2009. Cash and cash equivalents represented 3.90% of total assets at June 30, 2009 compared to 2.70% of total assets at December 31, 2008. Our investment portfolio decreased to $684,723 at June 30, 2009 from $695,106 at December 31, 2008. During the first six months of 2009, the Company purchased $220,514 of investments securities. Maturities and calls of securities during the first six months of 2009 totaled $123,969. The carrying value of securities sold during the first six months of 2009 totaled $100,295.

The loan balance, net of unearned income, at June 30, 2009 was $2,468,844, representing a decrease of $62,042 from $2,530,886 at December 31, 2008. Loans in our Tennessee region grew $10,033 while loans in our Mississippi and Alabama regions decreased $57,366 and $14,709, respectively, during the first six months of 2009 compared to the respective balances at December 31, 2008. The table below sets forth loans outstanding, according to loan type, net of unearned income.

Total deposits increased $255,879 to $2,600,210 at June 30, 2009 from $2,344,331 on December 31, 2008. Noninterest-bearing deposits increased $7,902 to $292,129 at June 30, 2009 compared to $284,227 at December 31, 2008. Interest-bearing deposits increased $247,977 to $2,308,081 at June 30, 2009 from $2,060,104 at December 31, 2008. Deposits in our Mississippi region increased $157,314 while deposits in our Tennessee and Alabama regions increased $53,388 and $45,177, respectively, during the first six months of 2009 compared to the respective balances at December 31, 2008. During the first six months of 2009, the Company was able to grow deposits because competition for deposits eased in our markets, causing deposit pricing to return to more normal levels. As a result, the Company used deposits as its primary source of funding rather than alternative sources of funding such as borrowings from the Federal Home Loan Bank (FHLB). The cost of the Companys interest-bearing deposits decreased 103 basis points to 2.15% for the six months ended June 30, 2009 from 3.18% for the six months ended June 30, 2008. The cost of the Companys FHLB borrowings were 3.27% for the six months ended June 30, 2009 compared to 3.73% for the same period in 2008.

Fees and commissions, which include fees charged for both deposit services (other than service charges on deposits) and loan services, were $4,424 for the three month period ended June 30, 2009 compared to $4,481 for the same period in 2008. Fees charged for loan services were $2,368 for the second quarter of 2009 compared to $2,426 for the same period in 2008. Interchange fees on debit card transactions continue to be a strong source of noninterest income. For the second quarter of 2009, fees associated with debit card usage were $1,384, up 14.29% from $1,211 for the same period in 2008. The Company also provides specialized products and services to our customers through our Financial Services division. Specialized products include fixed and variable annuities, mutual funds, and stocks offered through a third party provider. Revenues generated from the sale of all of these products, which are included in the Condensed Consolidated Statements of Income in the account line Fees and commissions, were $274 for the second quarter of 2009 compared to $426 for the same period of 2008.

Net income for the six months ended June 30, 2009 was $10,262, a decrease of $6,000, or 36.90%, from net income of $16,262 for the same period in 2008. Basic earnings per share were $0.49 and diluted earnings per share were $0.48 for the six month period ended June 30, 2009, as compared to basic earnings per share of $0.78 and diluted earnings per share of $0.77 for the comparable period a year ago.

Fees and commissions were $9,106 for the six month period ended June 30, 2009, an increase of $860, or 10.43%, over $8,246 for the same period in 2008. Fees charged for loan services increased $381 to $4,762 for the first six months of 2009 compared to $4,381 for the same period in 2008. For the first six months of 2009, fees associated with debit card usage were $2,676, up 16.55% from $2,296 for the same period in 2008. Revenues generated from the sale of all specialized products by the Financial Services division totaled $823 for the six month period ended

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Rating: 3.3/5 (3 votes)

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