Mortgage operations provided source of revenue despite decline in mortgage loan production
Renasant Corporation has posted a decline in the net income to $4.225m or $0.20 per share in the third quarter of 2009 from $7.558m or $0.36 per share in the third quarter of 2008.
The company reported a net interest income is $25.191m in the third quarter of 2009 compared to $27.941m in the same period of 2008. Net interest margin is 3.22% in the third quarter of 2009 compared 3.45% in the third quarter of 2008.
According to the company its mortgage operations provided a strong source of revenue although mortgage loan production declined during the third quarter of 2009 compared to the second quarter of 2009.
Reportedly, gains from the sale of mortgage loans increased $480,000 to $1.832m in the third quarter of 2009 as compared to $1.352m in the third quarter of 2008. Mortgage loan production was $150.9m during the third quarter of 2009 compared to $260.6m in the second quarter of 2009 and $174.2m in the third quarter of 2008.
Robinson McGraw, chairman and CEOof Renasant, said: The linked quarter increase in both net interest income and net interest margin was the result of our ability to replace wholesale borrowings and public fund deposits with less expensive retail deposits coupled with an increase in our loan yields.
Our capital ratios have consistently improved over the past year, with the ratios remaining at levels which exceed ‘well capitalised’ regulatory thresholds. In addition to the improvement in our regulatory capital ratios, during the third quarter of 2009, our tangible common equity ratio increased to 6.34% due to earnings retention after dividends paid and improvements in the fair value of available-for-sale securities in our investment portfolio.”