TUPELO — During the second quarter of 2014, Renasant Corporation saw net income increase 85 percent to $14,853,000, or basic and diluted earnings per share (EPS) of $0.47, compared to $8,019,000, or basic and diluted EPS of $0.32, for the second quarter of 2013. The company’s balance sheet and results of operations as of and for the three months ending June 30, 2014, include the impact of the acquisition of First M&F Corporation, which was completed on Sept. 1, 2013. Periods presented prior to Sept. 1, 2013, do not reflect any impact from the First M&F acquisition.
For the second quarter of 2014, Renasant’s return on assets and return on equity were 1.02 percent and 8.67 percent, respectively, as compared to 0.76 percent and 6.35 percent, respectively, for the second quarter of 2013. The company’s 2014 second quarter return on tangible assets and return on tangible equity were 1.15% and 16.55 percent, respectively, as compared to 0.82 percent and 10.47 percent, respectively, for the second quarter of 2013.
“Our second quarter financial results reflect the achievement of several key short-term initiatives and continued progress on our long-term strategies, specifically a return to higher levels of sustainable profitability and replenishing capital deployed in the First M&F acquisition. Focusing first on sustainable profitability, our earnings per share of 47 cents represents our highest quarterly earnings in the 110-year history of our company excluding quarters which recognized one-time gains associated with acquisitions. In addition, our return on assets was 1.02 percent for the quarter, marking the first time our return on assets exceeded 1 percent since the economic downturn,” said Renasant chairman and CEO E. Robinson McGraw. “These accomplishments were driven by annualized linked quarter non-acquired loan growth of 20.1 percent and a continued focus on generating revenues from our diversified lines of business while at the same time managing expenses to ensure future revenue growth is maximized. In regards to capital levels, our tangible common equity ratio stands at 7.00% at June 30, 2014, which, coupled with our strong regulatory capital ratios, will continue to support future balance sheet growth whether that growth is organic or the result of an external opportunity.”
Total assets as of June 30, 2014, were approximately $5.83 billion, as compared to $5.74 billion from December 31, 2013, and $5.9 billion on a linked quarter basis. The decrease in assets on a linked quarter basis is due to the seasonal runoff of deposits, primarily in public fund deposits, and the related divestiture of the liquid assets (low-yielding interest bearing cash or short-term investments) in which these seasonal deposits were invested.