By NEMS Daily Journal
TUPELO – Increased loans and a rise in net interest margin helped Renasant Corp. to a “strong finish” in the fourth quarter.
Renasant reported quarterly net income of $7.3 million, 26 percent higher than the $5.8 million posted in the fourth quarter of 2011. The company’s quarterly results equated to 29 cents per share, compared to 23 cents a year earlier.
It was the bank’s fourth-straight quarter of rising profit.
For the full year, Renasant recorded net income of $26.6 million, or $1.06 per share, a 4 percent increase from the year-ago net income of $25.6 million, or $1.02 a share.
“Our results for the fourth quarter of 2012 represent a strong finish to a successful year for Renasant,” said Renasant Chairman and CEO Robin McGraw.
Total loans increased 9 percent to $2.81 at Dec. 31. 2012, compared to $2.58 billion at the end of 2011. Renasant’s loans increased for the sixth consecutive quarter.
Total deposits at the end of 2012 grew to $3.461 billion from $3.41 billion. Total assets were about $4.18 billion, down slightly from the $4.20 billion a year earlier.
Net interest income was $34.0 million for the fourth quarter of 2012, compared to $32.6 million for the fourth quarter of 2011. Net interest margin was 3.97 percent for the quarter up 13 basis points from 3.84 percent for the fourth quarter of 2011.
For the year, net interest income increased to $133.3 million from $129.3 million, while net interest margin increased to 3.94 percent from 3.77 percent.
For the fourth quarter, noninterest income increased 40 percent to $18 million. For the year, noninterest income grew to $68.7 million from $64.7 million. Noninterest income increased 24 percent o $13.4 million, excluding gains from acquisitions made in 2011.
Renasant’s nonperforming assets decreased 28.7 percent to $75 million at the end of 2012, compared to $105.0 million a year earlier.
Nonperforming loans – loans delinquent for 90 days or more – for the year fell 13.5 percent to $30.2 million.
Renasant decreased its provision for loan losses to $4 million for the quarter and $18.1 million for the year. In 2011, the company’s loan-loss provision was $6 million for the fourth quarter and $22.4 million for the year.
The company also saw a reduction in annualized net charge-offs as a percentage of average loans. For the fourth quarter, the figure was 0.52 percent, versus 1.56 percent for the same period in 2011.
For the year, net charge-offs were 0.67 percent, compared to 0.91 percent for 2011.
The allowance for loan losses as a percentage of loans was 1.72 percent at the end of 2012, compared to 1.98 percent at the end of 2011.