TUPELO – The acquisition of Georgia-based Crescent Bank amp& Trust in July helped power Renasant Corp.’s third-quarter results.
After the financial markets closed Tuesday, Renasant reported net income of $19.55 million, compared to $4.23 million for the period a year ago.
The results translated to 81 cents per share for the third quarter of this year, compared to 18 cents per share in the second quarter and 20 cents per share for the third quarter of 2009.
Renasant expanded into north Georgia through its acquisition of the assets of Crescent in an FDIC-assisted transaction completed on July 23. The deal added 11 branches and increased total assets $778.8 million, total loans of $369.6 million, total deposits of $698.0 million and resulted in a pre-tax gain of $42.2 million.
amp”We are proud of our accomplishments during the third quarter of 2010,amp” said Renasant Chairman and CEO Robin McGraw. amp”With additional capital, excess cash and strong reserves, we believe that we are positioned to take advantage of opportunities to expand our market share and footprint as they present themselves in the future.amp”
Total assets at the end of the third quarter on Sept. 30 were about $4.26 billion, an 18.43 percent increase since the end of the second quarter and a 16.9 percent increase from Dec. 31. Total deposits were $3.42 billion, a 27 percent increase from the end of the second quarter and a 32.6 percent increase since Dec. 31.
Total loans were about $2.58 billion, up from $2.26 billion at the end of the second quarter and $2.35 billion. Loans from its legacy markets were $2.22 billion.
Renasant also reduced its construction and land development portfolio by $24.1 million, or 7.8 percent, compared to $284.6 million dollars, or 12.7 percent as a percentage of its legacy loan portfolio for the year-ago period. For the first nine months of this year, Renasant has reduced its construction and land development portfolio by $130.2 million, or 31.4 percent since the end of last year.
Net interest income was $24.3 million for the third quarter, compared to $25.2 million for the year-ago period. Net interest margin was 2.81 percent, compared to 3.15 percent for the second quarter and 3.22 percent for the third quarter of 2009.
The impact of the Crescent acquisition decreased net interest margin for the third quarter of 2010 by 16 basis points. Renasant also repaid about $148 million of Federal Home Loan Bank borrowings, including $23 million of FHLB borrowings assumed in the Crescent acquisition. Renasant took a $2.8 million prepayment penalty which reduced net interest margin by another 36 basis points. The net interest margin, excluding the impact of the Crescent acquisition and FHLB prepayment penalty, would have been 3.33 percent.
amp”We anticipate margin to improve as we continue to reduce rates on time deposit renewals, deploy excess cash from the Crescent acquisition and realize the full benefit of paying off high costing FHLB advances,amp” McGraw said.
Noninterest income was $54.5 million for the third quarter of 2010, which includes a pretax gain of $42.2 million recognized in connection with the Crescent acquisition.
Excluding the Crescent loans, the allowance for loan losses as a percentage of loans was 2.02 percent, compared to 1.82 percent in the second quarter and 1.67 percent at the end of 2009. Renasant recorded a provision for loan losses of $11.5 million for the quarter versus $7.4 million last year.
Renasant’s nonperforming loans were $132.7 million, which includes $67.1 million of nonperforming loans acquired in the Crescent acquisition.
Dennis Seid/NEMS Daily Journal