TUPELO – Renasant Corp. reported net income of $7.57 million in the first quarter, a 27 percent increase from the same period a year earlier.
For Renasant, the parent of Renasant Bank, the quarterly earnings represented 30 cents a share, 2 cents higher than consensus estimates.
In the first three months of 2012, Renasant earned $5.97 million, or 24 cents a share.
“Our strong start to 2013 represents the fifth consecutive quarter of improvement in net income and earnings per share,” said Renasant Chairman and CEO Robin McGraw. “The results for the first quarter of 2013 reflect loan and deposit growth, higher levels of noninterest income and lower credit costs as we experienced significant improvements in our credit quality metrics.”
Total loans, which include loans covered and not covered under FDIC loss-share agreements, were $2.81 billion in the first quarter, compared to $2.60 billion last year.
Total deposits grew to $3.56 billion from $3.47 billion.
Renasant’s net interest margin – the difference between what the interest income from loans and the amount of interest it pays – was 3.89 percent in the first quarter of this year, compared to 3.85 percent a year earlier.
Net interest income was $33.4 million versus $32.8 million a year earlier, while non-interest income was $17.3 million, compared to $16.4 million last year.
Renasant set aside $46.5 million for loan losses, representing 1.79 percent of loans, compared to last year’s allowance for loan losses of $44.2 million, or 1.94 percent of loans.
The company’s nonperforming loans declined from $30.4 million to $28 million. As a percentage of total loans, NPL were 1.08 percent in the first three months of the year, compraed to 1.33 percent in last year’s first quarter.
Renasant charged off $893,000 during the first quarter, an 82 percent decrease from $5 million in net charge-offs a year eariler.
The company’s provision for loan losses fell to $3.1 million, compared to $4.8 million for the first quarter of 2012.
Total assets as of March 31 were $4.27 billion.
McGraw also noted Renasant’s recent announcement of its planned acquisition of Kosciusko-based First M&F Corp., the parent of M&F Bank. That $119 million deal is expected to be completed by the third quarter.
“In addition to our strong financial start for this year, during the first quarter of 2013, we also announced our plans to acquire First M&F Corp. … a $1.6 billion financial services company with 36 full-service locations in Mississippi, Alabama and Tennessee,” he said. “This will be the largest merger in our company’s history and, upon completion of the transaction, the pro forma combined company will have approximately $5.8 billion in total assets and 123 full-service locations.”
Renasant (Nasdaq GS: RNST) closed Tuesday at $22.09 a share, up 20 cents. It announced its earnings after the market closed.
NEMS Daily Journal