Renasant nets $6.6M in third quarter

Daily Journal

TUPELO – Renasant Corp. reported third-quarter net income of $6.6 million, or 24 cents a share, on Tuesday after the close of financial markets.

A year ago, the company reported net income of $7 million, or 28 cents a share.

The Tupelo-based financial holding company and parent of Renasant Bank said without merger-related expenses tied to its acquisition of First M&F Corp., net income was $9.3 million, or 34 cents a share.

Renasant completed its merger of First M&F on Sept. 1.

M&F’s results are not reflected in Renasant’s results before the merger completion, but balances as of Sept. 30 do include the impact of the merger, including M&F’s $1.4 billion in assets, $891.4 million in loans, $1.3 billion in deposits, 35 branches, eight insurance offices and $115.1 million in goodwill and other intangibles, the company said.

Per terms of the merger, Renasant issued about 6.2 million shares of stock.

“We are pleased with our third quarter performance which includes the completion of the M&F merger, our largest acquisition to date. In addition to the merger, we continued to experience strong loan growth and significant improvements to our credit risk profile,” said Renasant Chairman and CEO, Robin McGraw.

Total assets at the end of the third quarter were $5.74 billion. Total loans were $3.88 billion and total deposits were $4.83 billion.

Net interest income increased to $38.7 million for the quarter, compared to $33.1 million for the same period a year ago.

Net interest margin was 3.86 percent, compared to 3.94 percent for the year-ago quarter.

Noninterest income rose to $18.9 million from $18 million.

Noninterest expense increased from $38.7 million to $46.6 million, mainly on merger-related expenses.

Renasant’s loan-loss provision for the quarter was $2.3 million, compared to $4.6 million a year go. Annualized net charges as a percentage of average loans fell to 0.38 percent, compared to 0.78 percent in 2012.

The allowance for loan losses as a percentage of loans was 1.25 percent compared to 1.72 percent.

Nonperforming loans, which include $8.8 million from M&F, totaled $30.9 million for the quarter.