By NEMS Daily Journal
TUPELO – Growth in loans and noninterest-bearing deposits helped Renasant Corp. boost its second-quarter net income by 10 percent.
The parent company of Renasant Bank, the Tupelo-based company said it recorded net income of $6.35 million, or 25 cents a share, compared to $5.76 million, or 23 cents a share, a year earlier.
Renasant announced its results after the close of financial markets. Prior to issuing its quarterly report, Renasant shares (Nasdaq: RNST) added 2 cents to close at $16.15.
Company Chairman and CEO Robin McGraw noted Renasant’s 2012 second-quarter earnings also got a boost from a 22-basis point increase in net interest margin – from 3.76 percent to 3.98 percent – and a 31 percent increase in noninterest income.
“In addition, we continued to experience significant improvement in our credit quality metrics as our nonperforming loans and nonperforming assets not covered by loss-share agreements with the FDIC decreased by 42 percent and 27 percent, respectively,” he said.
Total assets as of June 30 were $4.11 billion, down from $4.26 billion a year earlier.
Total loans were $2.68 billion, compared to $2.56 billion last year.
“Our annualized loan growth rate of 19.35 percent during the second quarter of 2012 represents one of the largest percentage increases in loans for a single quarter in the history of our company,” McGraw said. “Furthermore, we are particularly pleased that each region within our footprint contributed to this growth, which represents our fourth consecutive quarter of net loan growth.
Renasant’s total deposits at the end of the second quarter were $3.41 billion, compared to $3.48 billion for the same period in 2011.
Net interest income increased from $32.62 million to $33.41 million. Noninterest income was $16.24 million, up 31 percent from the $12.42 million a year earlier. The increase was due primarily to mortgage production growth and a wealth management income boost from Renasant’s RBC Bank (USA)’s asset trust acquisition last year.
Renasant’s provision for loan losses was $4.7 million for the second quarter of 2012, compared to $5.35 million last year. Allowance for loan losses as a percentage of loans was 1.87 percent for the period, compared to 2.18 percent a year earlier.