TUPELO — Renasant Corporation reports net income for the third quarter of 2009 was $4.225 million, compared to $7.558 million for the third quarter of 2008. Basic and diluted earnings per share were $0.20, compared to basic and diluted earnings per share of $0.36 for the third quarter of 2008.
“We continued our focus on reducing and controlling operating expenses during the third quarter of 2009. The reduction in operating expense was primarily due to cost containment on salaries and benefits as well as renegotiations of contracts related to items such as maintenance, supplies and leases,” said Renasant chairman and CEO E. Robinson McGraw.
Annualized net charge-offs as a percentage of average loans were 1.12 percent for the third quarter of 2009, up from 0.93 percent for the second quarter of 2009 and 0.25 percent for the third quarter of 2008. The allowance for loan losses as a percentage of loans was 1.51 percent at Sept. 30, 2009, as compared to 1.46 percent at June 30, 2009 and 1.11 percent at Sept. 30, 2008. The company recorded a provision for loan losses of $7.35 million for the third quarter of 2009, compared to $6.7 million for the second quarter of 2009 and $3 million for the third quarter of 2008. The provision for loan losses was increased during the third quarter of 2009 in response to the increase in loans 30-89 days past due and the higher amount of net charge-offs.
“Based on our concerns with the economy and our volume of past due loans, we continued to increase our allowance for loan losses through an increased provision for loan losses this quarter. This increase is consistent with our historical practice of providing for losses in our loan portfolio as we identify potential weaknesses,” said McGraw.