Renasant earns $6M in quarter

Renasant’s first quarter net income fell 27 percent in the first quarter, but the bank pointed to positives, including non-interest income growth and double-digit deposit growth.
Net income for the first quarter ended March 31 was $6.0 million, or 29 cents per share, compared to $8.3 million, or 40 cents per share, for the year-ago period.
“We believe our first quarter earnings results were solid in light of the continuing economic challenges facing our country,” said Renasant Chairman and CEO Robin McGraw.
Total assets at the end of the quarter were about $3.8 billion, a 2.6 percent increase from the first quarter of 2008. Total loans were $2.51 billion, compared to $2.58 billion a year ago.Total deposits were $2.7 billion, a 14.7 percent increase from the end of 2008 and a 2.4 percent increase from a year ago.
Net interest income was $25.3 million, compared to $27.2 million.
Net interest margin was 3.19 percent for the quarter, down from 3.36 percent for the fourth quarter of 2008 and from 3.52 percent for the first quarter of 2008.
Renasant said the linked quarter decrease in net interest margin was in large part due to the impact of the rate decreases by the Federal Reserve during the fourth quarter of 2008 on it interest-earning assets, which were not completely offset by reductions in the cost of funds. Accelerated prepayments on mortgage-backed securities and calls of government agency securities also contributed to the decline in net interest margin.
Record mortgage income
Non-interest income increased 6.5 percent to $14.8 million, spurred by the bank’s mortgage lending division. Renasant posted record mortgage income of about $262 million, compared to $191 million for the first quarter of 2008.
Non-interest expense was $26.9 million, compared to $26.8 million a year ago.
Annualized net charge-offs as a percentage of average loans were 0.75 percent for the first quarter of 2009, down from 1.26 percent for the fourth quarter of 2008 and up from 0.26 percent for the first quarter of 2008.
Non-performing loans as a percentage of total loans were 2.69 percent in the first quarter, compared to 1.58 percent at the end of 2008, and 0.85 percent for the year-ago period. Allowance for loan losses as a percentage of loans was 1.40 percent, compared to 1.38 percent in the fourth quarter and 1.06 percent a year ago.
Renasant recorded a provision for loan losses of $5.0 million for the quarter. It posted a provision for loan losses of $2.6 million a year ago, and nearly $15 million at the end of the fourth quarter.
Shares of Renasant on Tuesday (NasdaqGS: RNST) rose 73 cents to $13.25, or 5.83 percent. Renasant reported its earnings after the markets closed.

 

NEMS Daily Journal