Tupelo-based Renasant Corp., parent of Renasant Bank, extended its regional reach with completion of a Federal Deposit Insurance Corp.-assisted acquisition of troubled American Trust Bank of Roswell, Ga.
American Trust’s three suburban Atlanta locations will reopen Monday as Renasant Bank.
The acquisition expands the $4.5 billion Renasant 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, the bank says.
With a discount bid of $18.3 million with no deposit premium, Renasant Bank acquired about $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, Renasant said in a press statement.
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.
Further, 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 percent of the losses incurred on these loans.
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, the bank said.
This was Renasant’s second FDIC-assisted acquisition in the past eight months. “The chance to acquire American Trust was a tremendous opportunity to expand Renasant Bank’s presence in North Georgia,” said Renasant Chairman & CEO, E. Robinson McGraw. “Our entrance into North Georgia in July, 2010 following our acquisition of Crescent Bank & Trust in July, 2010 has been a great addition for Renasant as it provides access to new markets with attractive, long-term growth opportunities. ”
McCraw said Renasant’s excess liquidity and strong capital ratios makes it well positioned to expand its regional footprint even further.
Renasant now has more than 80 locations in Mississippi, Alabama, Georgia and Tennessee.
Ted Carter/MBJ Staff
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