TUPELO – Renasant Corp. wrapped up its merger with First M&F Corp. in September, which helped power the company’s results in the fourth quarter.
In fact, Renasant Chairman and CEO Robin McGraw said, “we experienced a strong finish to a great year.”
With the merger, Renasant became the state’s fourth-largest bank.
Renasant earned $11.3 million, or 36 cents a share, in the final three months of the year, a nearly 55 percent increase over the same period a year earlier.
For the year, Renasant posted net income of $33.5 million, nearly 26 percent more than the $26.6 million reported for 2012.
Earnings equated to $1.22 per share for the year, up from $1.06 a year earlier.
The results include merger expenses totaling $4.4 million, or 16 cents a share.
Renasant also reported a 38 percent increase in total loans, to $3.88 billion. Even without the M&F results included, loans grew 12.2 percent.
Deposits were $4.84 billion at the end of the year, while total assets grew from $4.18 billion to $5.74 billion.
Renasant was helped by a hike in net interest income in the fourth quarter, to $50.7 million, compared to $34 million for the fourth quarter in 2012. Net interest margin – the percentage difference between the interest a bank earns from loans and investments and the interest it pays to depositors – was 4.16 percent in the quarter, compared to 3.97 percent a year ago.
Renasant’s noninterest income – which comes primarily from mortgage, insurance and wealth management – increased $18.3 million in the fourth quarter.
The company’s value of nonperforming loans for the year was $76.5 million, with $57.4 million absorbed due to the merger.
Renasant’s provision for loan losses was cut in half, to $2 million in the fourth quarter. Charge-offs totaled $584,000, compared to $3.7 million a year earlier.
After completing the conversion of M&F Bank in December, Renasant added more than 70,000 “deposit relationships” and 27 additional banking location. Nine locations were closed to remove overlap.
Renasant’s results were announced after financial markets closed.
Shares on Tuesday closed up 34 cents to $30.56.