RNST - Renasant Corp.

[Junto]

Company Overview:
Renasant Corporation, headquartered in Tupelo, MS, is the parent of Renasant Bank and Renasant Insurance, and operates over 75 banking, mortgage, insurance and financial services offices in Mississippi, Tennessee, Alabama and Georgia.  The company has assets of approximately $4.2 billion.

On July 23, 2010, Renasant Bank acquired specified assets and assumed specified liabilities of Crescent Bank & Trust Company, a Georgia-chartered bank headquartered in Jasper, Georgia from the FDIC. At the time of acquisition, the total assets acquired were $950,307 including loans of $538,743 and deposits of $890,103. Approximately $528,081 of acquired loans and $79,359 of other real estate owned are covered by loss-sharing agreements with the FDIC.

Tangible Book Value as of Q3 is $11.37 and Book Value of $19.05. Currently trading at $17.00/share and paying a 0.17 quarterly dividend. In a more normalized environment, the bank should make $1.67 - $1.90/share annually and trade at around 1.25 - 1.50 times Book Value. The recent FDIC assisted transaction provides the company with an entry into the North Georgia marketplace and will allow the company to cut interest expense and increase Net Interest Margins. It has established branches that are relatively in the top of their markets in deposit market share and what appears to be good underwriting standards. Transition of Crescent branches have exceeded expectations and the benefits will start to show in Q4 2010 and Q1 2011.

Guidance on NIM is 3.40-3.50% in Q4 2010. It appears that there were a lot of accounting adjustments and a prepayment of FHLB advances in Q3 2010 that will put the bank in solid footing over the upcoming quarters.  The company has a good pipeline of OREO sales for Q4 2010 driving down non-accrual charges.

Dividend is on solid footing which allows for nice yield with good potential upside over the coming 12 months.

Anyone else looked into this company? Thoughts?

I purchased a position in this bank today.

[Junto]

Earnings for Q4 were right on line with my expectations. Stock has fallen since purchase and I added significantly more shares recently in my personal portfolio.

Another FDIC assisted transaction in Georgia (http://bit.ly/hMKqGI):

Renasant Corporation Announces Acquisition of American Trust Bank of Roswell, Georgia
 
TUPELO, Miss., Feb. 4, 2011 /PRNewswire/ -- Renasant Corporation (Nasdaq: RNST) ("Renasant") today announced that its wholly-owned subsidiary, Renasant Bank, has acquired all of the deposits, substantially all of the assets and certain other liabilities of American Trust Bank of Roswell, Georgia ("American Trust") in a Federal Deposit Insurance Corporation ("FDIC") assisted transaction. 

All American Trust locations will open at their normal banking hours on Monday, February 7, 2011 as Renasant Bank locations.  American Trust clients will continue to be able to conduct banking business, including accessing their money by writing checks and using ATM or debit cards.  All outstanding checks will be processed as usual, and customers can continue using their American Trust checks.

Highlights of the acquisition include:

    * Renasant Bank expanding its branch network to 14 full-service locations in North Georgia providing entry into the Roswell market while at the same time adding additional branches in the Alpharetta and Cumming markets.
    * Renasant Bank acquired approximately $145 million of American Trust's assets and assumed approximately $230 million in liabilities.  These amounts represent American Trust's book value for these assets and liabilities and do not necessarily reflect fair value.  Further, these amounts are estimates and, accordingly, are subject to adjustment based upon final settlement with the FDIC. The FDIC will make a cash payment to Renasant Bank for the difference between the assets acquired and liabilities assumed. 
    * The FDIC retained substantially all of American Trust's nonperforming loans and other real estate owned.
    * The acquired loans consist primarily of commercial & industrial and commercial real estate loans.
    * The loans acquired, except for a small portfolio of consumer loans, are covered by a loss share agreement in which the FDIC will reimburse Renasant Bank for 80% of the losses incurred on these loans.
    * Renasant Bank submitted a discount bid of $18.3 million with no deposit premium.
    * The acquisition is expected to provide a one-time gain in the first quarter of 2011, and it will be immediately accretive to Renasant's earnings per share and tangible book value.