SEC Filing | Renasant Corporation

RENASANT CORPORATION

Date: January 15, 2008

/s/ E. Robinson McGraw

E. Robinson McGraw

Chairman, President and

Chief Executive Officer

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Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934

January 15, 2008

Date of Report (Date of Earliest Event Reported)

RENASANT CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Mississippi

000-12154

64-0676974

(State or Other Jurisdiction of

Incorporation)

(Commission File Number)

(I.R.S. Employer Identification

Number)


209 Troy Street, Tupelo, Mississippi		38804-0709
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, including area code: (662) 680-1001

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On January 15, 2008, Renasant Corporation (the “Company”) issued a press release announcing earnings for the three months and year ending December 31, 2007. The press release is furnished as Exhibit 99.1 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) The following exhibits are furnished herewith:


Exhibit No.		Description

99.1		Press release dated January 15, 2008 issued by Renasant Corporation announcing earnings for the three months and year ending December 31, 2007.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Press Release

Exhibit 99.1

LOGO

RENASANT CORPORATION

ANNOUNCES EARNINGS FOR 2007

TUPELO, MISSISSIPPI (January 15, 2008) – Renasant Corporation (NASDAQ: RNST) (“Renasant” or the “Company”) today announced earnings results for 2007. Net income for 2007 was $31,101,000, up 14.7%, or $3,976,000, from 2006. Basic and diluted earnings per share were $1.66 and $1.64 for 2007, respectively, compared to basic and diluted earnings per share of $1.75 and $1.71 for 2006.

For the fourth quarter of 2007, net income was $8,755,000, as compared to $6,949,000 for the fourth quarter of 2006. Basic earnings per share were $.42 and diluted earnings per share were $.41 for the fourth quarter of 2007, compared to basic earnings per share of $.45 and diluted earnings per share of $.44 for the fourth quarter of 2006.

“Despite the entire financial services industry facing a challenging environment which has included an inverted to flat yield curve, a decline in credit quality, and a downturn in the national economy, we are pleased with our financial results for the fourth quarter and our overall

performance in 2007,” commented Renasant Chairman and Chief Executive Officer, E. Robinson McGraw. “During 2007, Renasant completed its acquisition of Capital Bancorp, Inc. of Nashville, Tennessee and the related equity offering of 2.76 million shares of common stock, increased its dividend cash payout for the 20^th consecutive year, and opened a full service banking office in Oxford, Mississippi. As we close the books on a challenging year for financial services institutions, we are concentrating our efforts on market share expansion within our current markets for 2008.”

Total assets as of December 31, 2007 were $3.61 billion, an increase of 38.33%, from December 31, 2006. Total loans were $2.59 billion at the end of 2007, an increase of 41.60% from December 31, 2006. Total deposits grew 20.81% to $2.55 billion during the same period.

Net interest income was $95,821,000 for 2007, an increase of 13.99%, from $84,063,000 for 2006. Net interest income increased to $26,943,000 for the fourth quarter of 2007 compared to $20,910,000 for the same period in 2006. Net interest margin decreased to 3.48% for the fourth quarter of 2007 from 3.78% for the fourth quarter of 2006.

Noninterest income was $52,187,000 for 2007, an increase of 13.59%, from $45,943,000 for 2006. Noninterest income was $13,197,000 for the fourth quarter of 2007 compared to $11,764,000 for the fourth quarter of 2006.

“Despite the recent downturn in the national as well as regional housing markets, we were able to realize significant gains from the sale of mortgage loans. Gains from the sale of mortgage loans increased to $1.29 million for the fourth quarter of 2007 as compared to $1.03 million during the fourth quarter of 2006,” stated McGraw. “In addition, we have not actively participated in the originations of subprime loans and, as such, believe that we have limited exposure in this area.”

Noninterest expense was $98,000,000 for 2007, an increase of 10.10%, from $89,006,000 for 2006. Noninterest expense was $25,443,000 for the fourth quarter of 2007 compared to $22,011,000 for the fourth quarter of 2006. Although the aggregate amount of noninterest expense grew, the ratio of noninterest expense to average assets decreased to 2.80% for the fourth quarter of 2007 from 3.40% for the same period in 2006. The Company reduced noninterest expense on a linked quarter basis by approximately $1 million by realizing the cost savings from the Capital merger, adjustments in the Company’s incentive plans and from renegotiating its data processing contract.

“As the economy continued to slow during 2007, we concentrated on reducing our operating expense as evidenced by the decrease in our noninterest expense to average assets over the past 12 months,” stated McGraw.

Net charge-offs as a percentage of average loans for the year ending December 31, 2007, were .14% compared to .07% for 2006. Annualized net charge-offs as a percentage of average loans were .36% for the fourth quarter of 2007, up from .12% for the fourth quarter of 2006. Net charge-offs for the fourth quarter of 2007 include $1,870,000 related to two loans which had been on non-performing status since 2006 and were charged-off in the fourth quarter of 2007. Both of these loans were adequately reserved for in the allowance for loan losses at the time of the charge-off.

Non-performing loans as a percentage of total loans were .67% at December 31, 2007, compared to .62% as of December 31, 2006. The increase in non-performing loans is primarily attributable to placing the remainder of the loans with one relationship on nonaccrual status during the fourth quarter of 2007. The Company recorded a provision for loan losses of $1,975,000 and $4,838,000 for the fourth quarter of 2007 and the year ending December 31, 2007, respectively, as compared to $800,000 and $2,408,000 for the same periods in 2006. The Company increased the provision for loan losses during 2007 in response to the softening of credit quality throughout its markets. In addition, the provision for loan losses for the year of 2006 was reduced by several large recoveries received during the second quarter of 2006. The allowance for loan losses as a percentage of loans was 1.02% at December 31, 2007, as compared to 1.07% for December 31, 2006. The non-performing loan coverage ratio was 153.31% at December 31, 2007 compared to 173.05% at December 31, 2006.

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, January 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. The event will be archived for 90 days. If Internet access is unavailable, the conference may also be heard live (listen-only) via telephone by dialing 866-510-0705 in the United States and entering the participant passcode: 37435312. The conference call will be available for replay by dialing 617-597-5363 and entering passcode: 37435312.

About Renasant:

Renasant Corporation, headquartered in Tupelo, MS, is the parent of Renasant Bank and Renasant Insurance, and operates 68 banking, mortgage and insurance offices in 41 cities in Mississippi, Tennessee and Alabama. The company has assets of approximately $3.6 billion.

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)


	2007												2006												Q4 2007 - Q4 2006 Percent Variance		For the Year Ended December 31,
Statement of earnings	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Q4 2007 - Q4 2006 Percent Variance		2007			2006			Percent Variance
Interest income—taxable equivalent basis	$	57,339		$	57,571		$	44,399		$	42,534		$	41,654		$	40,916		$	38,437		$	36,632		37.66		$	201,843		$	157,639		28.04

Interest income	$	56,316		$	56,636		$	43,541		$	41,710		$	40,809		$	40,070		$	37,597		$	35,817		38.00		$	198,203		$	154,293		28.46
Interest expense		29,373			29,938			22,022			21,049			19,899			18,367			16,655			15,309		47.61			102,382			70,230		45.78

Net interest income		26,943			26,698			21,519			20,661			20,910			21,703			20,942			20,508		28.85			95,821			84,063		13.99

Provision for loan losses		1,975			1,313			800			750			800			900			(360	)		1,068		146.88			4,838			2,408		100.91

Net interest income after provision		24,968			25,385			20,719			19,911			20,110			20,803			21,302			19,440		24.16			90,983			81,655		11.42

Service charges on deposit accounts		5,526			5,239			4,919			4,844			4,809			4,686			4,527			4,424		14.91			20,528			18,446		11.29
Fees and commissions on loans and deposits		3,834			4,104			4,060			3,728			3,530			3,662			3,659			3,003		8.61			15,726			13,854		13.51
Insurance commissions and fees		891			930			918			810			868			975			868			822		2.65			3,549			3,533		0.45
Trust revenue		806			806			680			567			625			630			630			630		28.96			2,859			2,515		13.68
Gain (loss) on sale of securities		—			—			(1	)		79			—			—			4			21		—			78			25		212.00
Gain on sale of mortgage loans		1,291			1,201			1,225			1,146			1,034			1,029			674			760		24.85			4,863			3,497		39.06
Other		849			1,166			1,066			1,503			898			731			671			1,773		(5.46	)		4,584			4,073		12.55

Total non-interest income		13,197			13,446			12,867			12,677			11,764			11,713			11,033			11,433		12.18			52,187			45,943		13.59

Salaries and employee benefits		13,970			15,010			13,083			12,927			12,234			13,013			12,301			12,212		14.19			54,990			49,760		10.51
Occupancy and equipment		3,371			3,269			2,836			2,731			2,773			2,788			2,688			2,786		21.57			12,207			11,035		10.62
Data processing		993			1,425			1,265			1,202			1,124			1,122			1,053			982		(11.65	)		4,885			4,281		14.11
Amortization of intangibles		596			610			391			394			396			398			414			431		50.51			1,991			1,639		21.48
Other		6,513			6,375			5,792			5,247			5,484			5,724			5,603			5,480		18.76			23,927			22,291		7.34

Total non-interest expense		25,443			26,689			23,367			22,501			22,011			23,045			22,059			21,891		15.59			98,000			89,006		10.10

Income before income taxes		12,722			12,142			10,219			10,087			9,863			9,471			10,276			8,982		28.99			45,170			38,592		17.04
Income taxes		3,967			3,845			3,132			3,125			2,914			2,839			3,233			2,481		36.14			14,069			11,467		22.69

Net income	$	8,755		$	8,297		$	7,087		$	6,962		$	6,949		$	6,632		$	7,043		$	6,501		25.99		$	31,101		$	27,125		14.66


Basic earnings per share		0.42			0.39		$	0.42		$	0.45		$	0.45		$	0.43		$	0.45		$	0.42		(6.67	)		1.66		$	1.75		(5.14	)
Diluted earnings per share		0.41			0.39			0.41			0.44			0.44			0.42			0.44			0.41		(6.82	)		1.64			1.71		(4.09	)

Average basic shares outstanding		20,953,099			21,096,156			17,029,781			15,554,515			15,534,907			15,529,002			15,504,993			15,455,763		34.88			18,679,857			15,515,223		20.40
Average diluted shares outstanding		21,297,082			21,437,848			17,292,914			15,865,906			15,917,314			15,904,213			15,832,310			15,743,906		33.80			18,989,279			15,853,014		19.78

Common shares outstanding		20,841,365			20,983,501			18,356,974			15,560,006			15,536,475			15,531,611			15,521,611			15,496,004		34.14			20,841,365			15,536,475		34.14
Cash dividend per common share	$	0.170		$	0.170		$	0.160		$	0.160		$	0.160		$	0.160		$	0.153		$	0.153		6.25		$	0.660		$	0.627		5.32

Performance ratios
Return on average shareholders’ equity		8.74	%		8.45	%		9.74	%		11.05	%		10.79	%		10.70	%		11.68	%		11.00	%				9.29	%		11.00	%
Return on average shareholders’ equity, excluding amortization expense		9.10	%		8.83	%		10.07	%		11.44	%		11.17	%		11.09	%		12.10	%		11.44	%				9.65	%		11.41	%
Return on average assets		0.96	%		0.94	%		1.04	%		1.06	%		1.07	%		1.05	%		1.14	%		1.07	%				0.99	%		1.08	%
Return on average assets, excluding amortization expense		1.00	%		0.98	%		1.07	%		1.10	%		1.11	%		1.08	%		1.18	%		1.12	%				1.03	%		1.12	%

Net interest margin (FTE)		3.48	%		3.52	%		3.66	%		3.67	%		3.78	%		4.02	%		3.96	%		3.99	%				3.57	%		3.93	%
Yield on earning assets (FTE)		7.14	%		7.32	%		7.25	%		7.27	%		7.23	%		7.29	%		7.00	%		6.86	%				7.24	%		7.10	%
Average earning assets to average assets		88.41	%		88.71	%		89.74	%		89.13	%		88.95	%		88.46	%		88.66	%		88.16	%				88.96	%		88.60	%
Average loans to average deposits		99.91	%		94.02	%		87.00	%		86.12	%		87.91	%		86.55	%		85.06	%		85.66	%				92.26	%		86.15	%

Noninterest income (less securities gains/ losses) to average assets		1.45	%		1.52	%		1.89	%		1.92	%		1.82	%		1.85	%		1.78	%		1.88	%				1.66	%		1.83	%
Noninterest expense to average assets		2.80	%		3.01	%		3.43	%		3.43	%		3.40	%		3.63	%		3.56	%		3.61	%				3.13	%		3.55	%
Net overhead ratio		1.35	%		1.49	%		1.54	%		1.51	%		1.58	%		1.79	%		1.78	%		1.73	%				1.46	%		1.72	%
Efficiency ratio (FTE)		61.81	%		64.97	%		66.30	%		65.87	%		65.67	%		67.26	%		67.22	%		66.83	%				64.62	%		66.75	%

*	Percent variance not meaningful

and per share amounts have been restated to reflect the three-for-two stock split issued August 28, 2006

RENASANT CORPORATION

(Unaudited)

(Dollars in thousands, except per share data)


	2007												2006												Q4 2007- Q4 2006 Percent Variance		For the Year Ended December 31,
Average balances	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Q4 2007- Q4 2006 Percent Variance		2007			2006			Percent Variance
Total assets	$	3,605,684		$	3,515,669		$	2,735,556		$	2,663,515		$	2,569,719		$	2,517,189		$	2,485,527		$	2,456,602		40.31		$	3,132,791		$	2,507,077		24.96
Earning assets		3,187,652			3,118,727			2,454,953			2,373,908			2,285,878			2,226,598			2,203,677			2,165,821		39.45			2,787,009			2,221,335		25.47
Securities		542,223			548,612			476,742			444,420			439,383			446,098			448,905			412,670		23.41			503,444			437,356		15.11
Loans, net of unearned		2,630,255			2,557,185			1,954,517			1,885,122			1,828,637			1,770,135			1,721,426			1,689,106		43.84			2,259,634			1,752,759		28.92
Intangibles		196,718			194,743			97,697			98,094			98,554			98,955			99,359			99,854		99.60			146,175			99,198		47.36

Non-interest bearing deposits		300,782			298,278			257,273		$	258,071		$	260,823		$	269,051		$	258,886		$	256,548		15.32		$	279,271		$	261,401		6.84
Interest bearing deposits		2,302,862			2,389,220			1,951,730			1,899,474			1,780,128			1,732,532			1,733,865			1,689,671		29.36			2,137,606			1,734,149		23.27
Total deposits		2,603,644			2,687,498			2,209,003			2,157,545			2,040,951			2,001,583			1,992,751			1,946,219		27.57			2,416,877			1,995,550		21.11
Other borrowings		547,946			385,589			201,743			212,762			241,642			239,295			225,201			245,093		126.76			340,084			237,802		43.01
Shareholders’ equity		397,516			389,621			291,864			255,470			255,494			245,946			241,841			239,771		55.59			334,915			246,507		35.86

Asset quality data
Nonaccrual loans	$	15,156		$	12,657		$	5,905		$	6,368		$	7,821		$	6,264		$	5,978		$	2,509		93.79		$	15,156		$	7,821		93.79
Loans 90 past due or more		2,046			2,125			1,648			3,913			3,467			1,798			1,745			1,546		(40.99	)		2,046			3,467		(40.99	)

Non-performing loans		17,202			14,782			7,553			10,281			11,288			8,062			7,723			4,055		52.39			17,202			11,288		52.39
Other real estate owned and repossessions		8,584			3,168			2,309			2,897			4,579			3,502			3,697			3,922		87.46			8,584			4,579		87.46

Non-performing assets	$	25,786		$	17,950		$	9,862		$	13,178		$	15,867		$	11,564		$	11,420		$	7,977		62.51		$	25,786		$	15,867		62.51


Net loan charge-offs (recoveries)	$	2,397		$	377		$	277		$	202		$	566		$	590		$	(877	)	$	958		323.50		$	3,253		$	1,237		162.97
Allowance for loan losses		26,372			26,926			20,605			20,082			19,534			19,300			18,990			18,473		35.01			26,372			19,534		35.01

Non-performing loans / total loans		0.67	%		0.57	%		0.38	%		0.54	%		0.62	%		0.46	%		0.45	%		0.24	%				0.67	%		0.62	%
Non-performing assets / total assets		0.71	%		0.50	%		0.35	%		0.48	%		0.61	%		0.46	%		0.46	%		0.32	%				0.71	%		0.61	%
Allowance for loan losses / total loans		1.02	%		1.04	%		1.04	%		1.06	%		1.07	%		1.10	%		1.10	%		1.11	%				1.02	%		1.07	%
Allowance for loan losses / non-performing loans		153.31	%		182.15	%		272.81	%		195.33	%		173.05	%		239.39	%		245.89	%		455.56	%				153.31	%		173.05	%
Annualized net loan charge-offs / average loans		0.36	%		0.06	%		0.06	%		0.04	%		0.12	%		0.13	%		-0.20	%		0.23	%				0.14	%		0.07	%

Balances at period end
Total assets	$	3,612,287		$	3,584,519		$	2,791,295		$	2,754,930		$	2,611,356		$	2,530,892		$	2,503,333		$	2,509,220				$	3,612,287		$	2,611,356		38.33
Earning assets		3,179,103			3,168,182			2,494,569			2,460,185			2,315,431			2,245,428			2,208,320			2,205,706					3,179,103			2,315,431		37.30
Securities		539,590			543,017			460,606			462,588			428,065			438,287			434,567			429,169					539,590			428,065		26.05
Mortgage loans held for sale		37,468			25,911			38,048			29,098			38,672			32,134			36,519			34,099					37,468			38,672		(3.11	)
Loans, net of unearned		2,586,643			2,588,563			1,977,941			1,889,799			1,826,762			1,761,842			1,729,861			1,664,479					2,586,643			1,826,762		41.60
Intangibles		197,288			196,643			97,286			97,902			98,296			98,760			99,159			99,575					197,288			98,296		100.71

Non-interest bearing deposits	$	299,394		$	315,813		$	274,336		$	273,726		$	271,237		$	257,764		$	272,686		$	272,672				$	299,394		$	271,237		10.38
Interest bearing deposits		2,248,427			2,348,064			1,949,018			1,991,620			1,837,728			1,727,650			1,710,780			1,759,073					2,248,427			1,837,728		22.35
Total deposits		2,547,821			2,663,877			2,223,354			2,265,346			2,108,965			1,985,414			1,983,466			2,031,745					2,547,821			2,108,965		20.81
Other borrowings		624,388			483,988			218,045			200,764			216,423			264,983			252,671			214,054					624,388			216,423		188.50
Shareholders’ equity		399,073			392,312			316,634			258,566			252,704			250,622			241,043			239,418					399,073			252,704		57.92

Market value per common share	$	21.57		$	21.63		$	22.74		$	24.68		$	30.63		$	28.07		$	26.90		$	24.63				$	21.57		$	30.63		(29.58	)
Book value per common share		19.15			18.70			17.25			16.62			16.27			16.14			15.53			15.45					19.15			16.27		17.72
Tangible book value per common share		9.68			9.32			11.95			10.33			9.94			9.78			9.14			9.02					9.68			9.94		(2.58	)
Shareholders’ equity to assets (actual)		11.05	%		10.94	%		11.34	%		9.39	%		9.68	%		9.90	%		9.63	%		9.54	%				11.05	%		9.68	%
Tangible capital ratio		5.91	%		5.78	%		8.14	%		6.05	%		6.14	%		6.24	%		5.90	%		5.80	%				5.91	%		6.14	%
Leverage ratio		8.09	%		8.26	%		11.02	%		8.85	%		8.60	%		8.79	%		8.67	%		8.59	%				8.09	%		8.60	%

Detail of Loans by Category
Commercial, financial, agricultural	$	317,866		$	336,157		$	265,062		$	243,274		$	236,741		$	231,361		$	230,890		$	206,914				$	317,866		$	236,741		34.27
Lease financing		2,557			2,906			3,409			3,833			4,234			4,617			5,284			6,548					2,557			4,234		(39.61	)
Real estate-construction		386,184			401,652			247,241			231,311			242,669			234,667			229,969			196,228					386,184			242,669		59.14
Real estate-1-4 family mortgages		850,708			841,266			669,557			654,604			636,060			614,143			593,174			578,931					850,708			636,060		33.75
Real estate-commercial mortgages		948,322			925,001			715,408			676,015			629,354			599,314			594,121			595,589					948,322			629,354		50.68
Installment loans to individuals		81,006			81,581			77,264			80,762			77,704			77,740			76,423			80,269					81,006			77,704		4.25

Loans, net of unearned	$	2,586,643		$	2,588,563		$	1,977,941		$	1,889,799		$	1,826,762		$	1,761,842		$	1,729,861		$	1,664,479				$	2,586,643		$	1,826,762		41.60

*Percent variance not meaningful

and per share amounts have been restated to reflect the three-for-two stock split issued August 28, 2006