Exhibit 99.1
The Peoples Holding Company
Selected Financial Information
(Dollars in Thousands, Except Share Data)
Unaudited
For The Three Months Ended December 31, | For The Year Ended December 31, | |||||||||||||||||||||
2004 | 2003 | % Change | 2004 | 2003 | % Change | |||||||||||||||||
Earnings Summary | ||||||||||||||||||||||
Interest income | $ | 21,076 | $ | 17,105 | 23.22 | % | $ | 77,024 | $ | 70,810 | 8.78 | % | ||||||||||
Interest expense | 5,848 | 4,944 | 18.28 | 21,796 | 21,777 | 0.09 | ||||||||||||||||
Net interest income | 15,228 | 12,161 | 25.22 | 55,228 | 49,033 | 12.63 | ||||||||||||||||
Provision for loan losses | (82 | ) | 544 | (115.07 | ) | 1,547 | 2,713 | (42.98 | ) | |||||||||||||
Noninterest income | 6,619 | 7,865 | (15.84 | ) | 32,287 | 31,893 | 1.24 | |||||||||||||||
Noninterest expenses | 16,631 | 13,210 | 25.90 | 60,709 | 53,193 | 14.13 | ||||||||||||||||
Income before taxes and cumulative effect of accounting change | 5,298 | 6,272 | (15.53 | ) | 25,259 | 25,020 | 0.96 | |||||||||||||||
Income taxes | 1,250 | 1,715 | (27.11 | ) | 6,816 | 6,839 | (0.34 | ) | ||||||||||||||
Income before cumulative effect of accounting change | 4,048 | 4,557 | (11.17 | ) | 18,443 | 18,181 | 1.44 | |||||||||||||||
Cumulative effect of accounting change | — | — | — | — | — | — | ||||||||||||||||
Net income | $ | 4,048 | $ | 4,557 | (11.17 | )% | $ | 18,443 | $ | 18,181 | 1.44 | % | ||||||||||
33.62 | % | |||||||||||||||||||||
Common Stock Data | ||||||||||||||||||||||
Earnings per share—basic | $ | 0.45 | $ | 0.56 | (19.64 | )% | $ | 2.15 | $ | 2.20 | (2.27 | )% | ||||||||||
Earnings per share—diluted | 0.44 | 0.55 | (20.00 | ) | 2.14 | 2.19 | (2.28 | ) | ||||||||||||||
Book value per share | 19.79 | 16.79 | 17.87 | |||||||||||||||||||
Market value per share | 33.10 | 33.00 | 0.30 | |||||||||||||||||||
Cash dividends per share | 0.21 | 0.20 | 5.00 | 0.82 | 0.75 | 9.33 | ||||||||||||||||
Weighted average shares outstanding | 9,024,384 | 8,198,067 | 10.08 | 8,597,267 | 8,282,838 | 3.80 | ||||||||||||||||
Weighted average shares outstanding—diluted | 9,081,944 | 8,218,971 | 10.50 | 8,637,008 | 8,296,901 | 4.10 | ||||||||||||||||
End of period shares outstanding | 9,046,997 | 8,194,526 | 10.40 | |||||||||||||||||||
Balance Sheet Summary | ||||||||||||||||||||||
Gross loans (excluding mortgage loans held for sale) | $ | 1,141,480 | $ | 862,652 | 32.32 | % | ||||||||||||||||
Allowance for loan losses | 14,403 | 13,232 | 8.85 | |||||||||||||||||||
Total investment securities | 371,581 | 414,270 | (10.30 | ) | ||||||||||||||||||
Total assets | 1,707,545 | 1,415,214 | 20.66 | |||||||||||||||||||
Total deposits | 1,318,677 | 1,133,931 | 16.29 | |||||||||||||||||||
Total borrowings | 191,547 | 125,572 | 52.54 | |||||||||||||||||||
Shareholders' equity | 179,042 | 137,625 | 30.09 | |||||||||||||||||||
For The Three Months Ended December 31, | For The Year Ended December 31, | |||||||||||||||||||||
2004 | 2003 | % Change | 2004 | 2003 | % Change | |||||||||||||||||
Selected Ratios | ||||||||||||||||||||||
Return on average assets * | 0.95 | % | 1.32 | % | (28.03 | )% | 1.18 | % | 1.33 | % | (11.28 | )% | ||||||||||
Return on average shareholders' equity * | 9.07 | 13.27 | (31.65 | ) | 11.52 | 13.41 | (14.09 | ) | ||||||||||||||
Return on average tangible shareholders' equity* | 12.41 | 13.87 | (10.53 | ) | 14.01 | 14.04 | (0.21 | ) | ||||||||||||||
Shareholders' equity to assets (actual) | 10.21 | 9.72 | 5.04 | |||||||||||||||||||
Net interest margin (TE) * | 4.20 | 4.16 | 0.96 | 4.14 | 4.23 | (2.13 | ) | |||||||||||||||
Noninterest income (less securities gains/losses) to average assets* | 1.82 | 2.26 | (19.47 | ) | 2.06 | 2.31 | (10.82 | ) | ||||||||||||||
Noninterest expense to average assets* | 3.92 | 3.84 | 2.08 | 3.87 | 3.88 | (0.26 | ) | |||||||||||||||
Overhead ratio * ** | 2.10 | 1.58 | 32.91 | 1.81 | 1.57 | 15.29 | ||||||||||||||||
Efficiency ratio | 70.16 | 63.48 | 10.52 | 66.93 | 63.16 | 5.97 | ||||||||||||||||
Allowance for loan losses to total loans | 1.26 | 1.53 | (17.65 | ) | ||||||||||||||||||
Reserve coverage of nonperforming loans | 166.30 | 181.09 | (8.17 | ) | ||||||||||||||||||
Nonperforming loans to total loans | 0.76 | 0.85 | (10.59 | ) | ||||||||||||||||||
Net charge-offs to average loans * | 0.65 | 0.26 | 150.00 | 0.32 | 0.20 | 60.00 | ||||||||||||||||
Average loans to average deposits | 84.13 | 74.90 | 12.32 | 79.77 | 74.99 | 6.37 | ||||||||||||||||
Average earning assets to average assets | 89.10 | 90.65 | (1.71 | ) | 89.91 | 90.64 | (0.81 | ) |
* | Ratios annualized |
** | The net overhead ratio is noninterest expense less noninterest income expressed as a percent of average assets |
TE—tax | equivalent basis |
Nonperforming Assets | |||||||||
Nonaccruing loans | $ | 6,443 | $ | 4,624 | 39.34 | % | |||
Accruing loans past due 90 days or more | 2,218 | 2,683 | (17.33 | ) | |||||
Total nonperforming loans | 8,661 | 7,307 | 18.53 | ||||||
ORE and repossessions | 2,324 | 1,805 | 28.75 | ||||||
Total nonperforming assets | $ | 10,985 | $ | 9,112 | 20.56 | % | |||
The Peoples Holding Company
Allowance for Loan Losses
(Dollars in Thousands)
Unaudited
For The Three Months Ended December 31, | For The Year Ended December 31, | ||||||||||||||||||
2004 | 2003 | % Change | 2004 | 2003 | % Change | ||||||||||||||
Reserve for loan losses at beginning of period | $ | 16,309 | $ | 13,237 | 23.21 | % | $ | 13,232 | $ | 12,203 | 8.43 | % | |||||||
Acquisition of Renasant | — | — | — | 2,845 | — | — | |||||||||||||
Provision for loan losses | (82 | ) | 544 | (115.07 | ) | 1,547 | 2,713 | (42.98 | ) | ||||||||||
Loans charged-off | 1,982 | 615 | 222.28 | 3,617 | 2,043 | 77.04 | |||||||||||||
Recoveries of loans previously charged-off | 158 | 66 | 139.39 | 396 | 359 | 10.31 | |||||||||||||
Reserve for loan losses at end of period | $ | 14,403 | $ | 13,232 | 8.85 | % | $ | 14,403 | $ | 13,232 | 8.85 | % | |||||||
The Peoples Holding Company
Loans and Credit Quality
(Dollars in Thousands)
Unaudited
Loans, Net of Unearned Income As of December 31, | Non-performing Loans As of December 31, | Net Charge-offs For The Year Ended | ||||||||||||||||
2004 | 2003 | 2004 | 2003 | 2004 | 2003 | |||||||||||||
Commercial, financial, agricultural | $ | 175,571 | $ | 140,149 | $ | 667 | $ | 885 | $ | 1,554 | $ | 459 | ||||||
Lease financing | 10,809 | 12,148 | 163 | — | — | — | ||||||||||||
Real estate—construction | 96,404 | 50,848 | 794 | — | — | — | ||||||||||||
Real estate—1-4 family mortgage | 375,698 | 293,097 | 5,519 | 5,220 | 1,016 | 420 | ||||||||||||
Real estate—commercial mortgage | 395,047 | 280,097 | 1,293 | 1,051 | 117 | 480 | ||||||||||||
Consumer | 87,951 | 86,313 | 225 | 151 | 534 | 325 | ||||||||||||
Total | $ | 1,141,480 | $ | 862,652 | $ | 8,661 | $ | 7,307 | $ | 3,221 | $ | 1,684 | ||||||
The Peoples Holding Company
Condensed Consolidated Statements of Income
(Dollars in Thousands, Except Share Data)
Unaudited
For The Three Months Ended December 31, | For The Year Ended December 31, | |||||||||||||||||||
2004 | 2003 | % Change | 2004 | 2003 | % Change | |||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 17,088 | $ | 13,406 | 27.47 | % | $ | 60,411 | $ | 56,366 | 7.18 | % | ||||||||
Securities | 3,987 | 3,660 | 8.93 | 16,436 | 14,211 | 15.66 | ||||||||||||||
Other | 1 | 39 | (97.44 | ) | 177 | 233 | (24.03 | ) | ||||||||||||
Total interest income | 21,076 | 17,105 | 23.22 | 77,024 | 70,810 | 8.78 | ||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 4,555 | 4,212 | 8.14 | 17,382 | 18,818 | (7.63 | ) | |||||||||||||
Borrowings | 1,293 | 732 | 76.64 | 4,414 | 2,959 | 49.17 | ||||||||||||||
Total interest expense | 5,848 | 4,944 | 18.28 | 21,796 | 21,777 | 0.09 | ||||||||||||||
Net interest income | 15,228 | 12,161 | 25.22 | 55,228 | 49,033 | 12.63 | ||||||||||||||
Provision for loan losses | (82 | ) | 544 | (115.07 | ) | 1,547 | 2,713 | (42.98 | ) | |||||||||||
Net interest income after provision for loan losses | 15,310 | 11,617 | 31.79 | 53,681 | 46,320 | 15.89 | ||||||||||||||
Noninterest income: | ||||||||||||||||||||
Service charges on deposit accounts | 3,856 | 3,655 | 5.50 | 15,355 | 14,417 | 6.51 | ||||||||||||||
Fees and commissions | 2,699 | 2,405 | 12.22 | 11,006 | 10,476 | 5.06 | ||||||||||||||
Trust revenue | 419 | 407 | 2.95 | 2,147 | 1,748 | 22.83 | ||||||||||||||
Gains on sale of securities | (1,130 | ) | 82 | (1,478.05 | ) | (1,021 | ) | 191 | (634.55 | ) | ||||||||||
BOLI Revenue | 306 | 284 | 7.75 | 1,176 | 1,169 | 0.60 | ||||||||||||||
Merchant Discounts | 39 | 330 | (88.18 | ) | 672 | 1,287 | (47.79 | ) | ||||||||||||
Gain on Sale of Merchant Business | — | — | — | 1,000 | — | — | ||||||||||||||
Other | 430 | 702 | (38.75 | ) | 1,952 | 2,605 | (25.07 | ) | ||||||||||||
Total noninterest income | 6,619 | 7,865 | (15.84 | ) | 32,287 | 31,893 | 1.24 | |||||||||||||
Noninterest expenses: | ||||||||||||||||||||
Salaries and employee benefits | 8,833 | 7,379 | 19.70 | 33,484 | 29,486 | 13.56 | ||||||||||||||
Data processing | 1,159 | 1,062 | 9.13 | 4,483 | 4,094 | 9.50 | ||||||||||||||
Net occupancy | 1,118 | 868 | 28.80 | 3,845 | 3,382 | 13.69 | ||||||||||||||
Equipment | 1,288 | 779 | 65.34 | 3,949 | 3,092 | 27.72 | ||||||||||||||
Other | 4,233 | 3,122 | 35.59 | 14,948 | 13,139 | 13.77 | ||||||||||||||
Total noninterest expenses | 16,631 | 13,210 | 25.90 | 60,709 | 53,193 | 14.13 | ||||||||||||||
Income before taxes and cumulative effect of accounting change | 5,298 | 6,272 | (15.53 | ) | 25,259 | 25,020 | 0.96 | |||||||||||||
Income taxes | 1,250 | 1,715 | (27.11 | ) | 6,816 | 6,839 | (0.34 | ) | ||||||||||||
Income before cumulative effect of accounting change | 4,048 | 4,557 | (11.17 | ) | 18,443 | 18,181 | 1.44 | |||||||||||||
Cumulative effect of accounting change | — | — | — | — | — | — | ||||||||||||||
Net income | $ | 4,048 | $ | 4,557 | (11.17 | )% | $ | 18,443 | $ | 18,181 | 1.44 | % | ||||||||
The Peoples Holding Company
Average Consolidated Balance Sheet and Net Interest Analysis *
(Dollars in Thousands)
Unaudited
For The Three Months Ended December 31 | For The Year Ended December 31 | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Earning assets | ||||||||||||||||
Loans and leases: | ||||||||||||||||
Interest (TE) | $ | 17,182 | $ | 13,521 | $ | 60,809 | $ | 56,890 | ||||||||
Average balance | 1,128,631 | 854,358 | 1,000,713 | 860,303 | ||||||||||||
Yield | 6.06 | % | 6.28 | % | 6.08 | % | 6.61 | % | ||||||||
Interest bearing bank balances, federal funds sold and repos: | ||||||||||||||||
Interest | 60 | 42 | 238 | 236 | ||||||||||||
Average balance | 7,929 | 15,618 | 14,321 | 25,891 | ||||||||||||
Yield | 3.01 | % | 1.07 | % | 1.66 | % | 0.91 | % | ||||||||
Investment securities: | ||||||||||||||||
Interest (TE) | 4,561 | 4,407 | 19,152 | 17,173 | ||||||||||||
Average balance | 377,482 | 377,451 | 394,456 | 356,166 | ||||||||||||
Yield | 4.83 | % | 4.67 | % | 4.86 | % | 4.82 | % | ||||||||
Total earning assets: | ||||||||||||||||
Interest (TE) | 21,803 | 17,970 | 80,199 | 74,299 | ||||||||||||
Average balance | 1,514,042 | 1,247,427 | 1,409,490 | 1,242,360 | ||||||||||||
Yield | 5.74 | % | 5.73 | % | 5.69 | % | 5.98 | % | ||||||||
Interest bearing liabilities | ||||||||||||||||
Interest bearing demand deposit accounts: | ||||||||||||||||
Interest | 67 | 18 | 175 | 80 | ||||||||||||
Average balance | 28,027 | 6,521 | 17,351 | 6,163 | ||||||||||||
Rate | 0.95 | % | 1.10 | % | 1.01 | % | 1.30 | % | ||||||||
Savings and money market accounts: | ||||||||||||||||
Interest | 1,119 | 1,026 | 4,378 | 4,682 | ||||||||||||
Average balance | 533,426 | 447,295 | 509,053 | 431,264 | ||||||||||||
Rate | 0.83 | % | 0.91 | % | 0.86 | % | 1.09 | % | ||||||||
Time deposits: | ||||||||||||||||
Interest | 3,369 | 3,168 | 12,829 | 14,056 | ||||||||||||
Average balance | 582,504 | 522,166 | 549,036 | 539,293 | ||||||||||||
Rate | 2.30 | % | 2.41 | % | 2.34 | % | 2.61 | % | ||||||||
Total interest bearing deposits: | ||||||||||||||||
Interest | 4,555 | 4,212 | 17,382 | 18,818 | ||||||||||||
Average balance | 1,143,957 | 975,982 | 1,075,440 | 976,720 | ||||||||||||
Rate | 1.58 | % | 1.71 | % | 1.62 | % | 1.93 | % | ||||||||
Other interest bearing liabilities: | ||||||||||||||||
Interest | 1,293 | 732 | 4,414 | 2,959 | ||||||||||||
Average balance | 161,263 | 84,495 | 137,008 | 83,293 | ||||||||||||
Rate | 3.19 | % | 3.44 | % | 3.22 | % | 3.55 | % | ||||||||
Total interest bearing liabilities: | ||||||||||||||||
Interest | 5,848 | 4,944 | 21,796 | 21,777 | ||||||||||||
Average balance | 1,305,220 | 1,060,477 | 1,212,448 | 1,060,013 | ||||||||||||
Rate | 1.78 | % | 1.85 | % | 1.80 | % | 2.05 | % | ||||||||
Net interest income (TE) | $ | 15,955 | $ | 13,026 | $ | 58,403 | $ | 52,522 | ||||||||
Net interest margin (TE) | 4.20 | % | 4.16 | % | 4.14 | % | 4.23 | % | ||||||||
Net interest spread (TE) | 3.96 | % | 3.88 | % | 3.89 | % | 3.93 | % |
* | Interest amounts annualized for purposes of calculating yields and rates |
TE—taxable equivalent basis