TUPELO, Miss., Dec. 8, 2016 /PRNewswire/ -- Renasant
Corporation (NASDAQ: RNST) (the "Company") today announced that its
wholly owned subsidiary, Renasant Bank (the "Bank"), has entered
into an agreement with the Federal Deposit Insurance Corporation
(the "FDIC") that terminates all of the Bank's loss share
agreements with the FDIC, which includes Single-Family Shared-Loss
and Commercial Shared Loss agreements. All rights and obligations
of the Bank and the FDIC under the FDIC loss share agreements have
been eliminated under the termination agreement. The loss share
agreements were related to the Bank's acquisition of assets and
assumption of liabilities of two failed banks through FDIC-assisted
transactions in 2010 and 2011. Also included in the termination
agreement were two FDIC loss share agreements the Bank assumed as a
result of its 2015 acquisition of Heritage Financial Group,
Inc.
Under the terms of the termination agreement, the Bank made a
payment of $4.8 million to the FDIC
as consideration for the early termination of the loss share
agreements. Accordingly, in the fourth quarter of 2016, the Company
expects to record a corresponding after-tax charge of approximately
$1.4 million, or $0.03 in diluted earnings per share. This charge
represents the write-off of the remaining FDIC indemnification
asset, the corresponding claw back liability and settlement charges
paid to the FDIC.
As a result of the termination agreement, all assets previously
classified as "acquired covered" will be classified as "acquired
not covered," and the Bank will now recognize the full amount of
all future charge-offs, recoveries, gains, losses and expenses
related to these previously covered assets, as the FDIC will no
longer share in these amounts. As of September 30, 2016, acquired covered loans
totaled approximately $30.5 million
and covered other real estate owned totaled approximately
$1.0 million.
ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a
112-year-old financial services institution. Renasant has assets of
approximately $8.5 billion and
operates more than 175 banking, mortgage, financial services and
insurance offices in Mississippi,
Tennessee, Alabama, Florida and Georgia.
NOTE TO INVESTORS:
This news release may contain, or incorporate by reference,
statements which may constitute "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such forward looking statements usually include
words such as "expects," "projects," "anticipates," "believes,"
"intends," "estimates," "strategy," "plan," "potential," "possible"
and other similar expressions.
Prospective investors are cautioned that any such
forward-looking statements are not guarantees for future
performance and involve risks and uncertainties, and that actual
results may differ materially from those contemplated by such
forward-looking statements. Important factors currently known
to management that could cause actual results to differ materially
from those in forward-looking statements include significant
fluctuations in interest rates, inflation, economic recession,
significant changes in the federal and state legal and regulatory
environment, significant underperformance in our portfolio of
outstanding loans, and competition in our markets. We undertake no
obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results over time.
Contacts:
|
For
Media:
|
For
Financials:
|
|
John
Oxford
|
Kevin
Chapman
|
|
First Vice
President
|
Executive Vice
President
|
|
Director of Corp
Communication
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Chief Financial
Officer
|
|
(662)
680-1219
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(662)
680-1450
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|
joxford@renasant.com
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kchapman@renasant.com
|
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SOURCE Renasant Corporation