Renasant Corp. in Tupelo, Miss., reported that its third-quarter net income rose more than 363% from a year earlier, largely because of a huge gain on the purchase of a failed bank.
The company said late Tuesday that it had net income of $19.6 million in the quarter, compared with $4.2 million a year earlier and $3.8 million in the second quarter.
Renasant made its first failed-bank acquisition in July, buying Crescent Bank and Trust Co. in Georgia; it raised $51.4 million in capital that same day. The deal produced a one-time gain of $42.2 million and an 18.4% increase in total assets, to $4.3 billion.
These improvements bolstered Renasant's capital ratios, including its total risk-based ratio, to 14.8%, from 12.67% in the second quarter. Renasant, however, continued to report rising chargeoffs and, consequently, a spike in its loan-loss provisions. Net loan chargeoffs rose 8.1% from the second quarter and 7.9% from a year earlier, to $7.5 million in the third quarter. The company expanded its loss provision by 64% from the second quarter and 56.5% from a year earlier, to $11.5 million.