Renasant nets $4.7M profit

By NEMS Daily Journal

TUPELO – Renasant Corp., the parent of Renasant Bank, posted fourth-quarter net income of $4.72 million, or 19 cents per share. The results represented a 17.1 percent increase from the $4.03 million recorded in the fourth quarter of 2009.
Renasant continued to benefit from a successful acquisition of Georgia-based Crescent Bank & Trust last July.
Net income for Renasant in 2010 was $31.66 million, a 71 percent increase compared to the $18.52 million recorded a year earlier. Earnings per share were $1.38 in 2010, compared to 87 cents in 2009.
Renasant’s net interest margin in the quarter grew to 3.43 percent from 3.22 percent in the year-ago period. For the year, net interest margin was 3.26 percent, compared to 3.16 percent in 2009.
Total deposits for all of 2010 grew 34 percent to $3.47 billion, while total loans increased 7.2 percent to $2.52 billion.
Renasant’s total assets for the year grew 18 percent to $4.3 billion.
Net interest income increased 20 percent to $29.86 million for the fourth quarter. For the year, net interest income rose 5.6 percent to $105.06 million.
During the fourth quarter, Renasant saw a drop in net charge-offs as a percentage of average loans, from 0.83 percent to 0.80 percent. Net charge-offs as a percentage of average loans for the year rose from 0.91 percent to 1 percent.
The bank’s provision for loan losses for the quarter fell from $7.8 million to $5.5 million versus the year-ago period. For the year, the loan-loss provision grew from $26.89 million to $30.67 million.
Renasant’s nonperforming loans at the end of the year fell from $65.6 million to $50 million. Excluding the Crescent loans, nonperforming loans as a percentage of total loans were 2.46 percent at the end of 2010, compared to 2.13 a year earlier.
Robin McGraw, Renasant’s chairman and CEO, noted that the company added 14 locations either through the Crescent acquisition or branch openings.
Renasant’s results were announced after the financial markets closed on Tuesday. The company’s shares dropped 6 cents, to $16.91. They have been trading in a 52-week range of $12.85 to $18.16.