Company: RNST
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000715072-25-000054
Chunk: 135

Company: RENASANT CORP
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 135
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58

The Company has junior subordinated debentures with a carrying value of $113,916 at December 31, 2024, of which $110,325 are included in the Company’s Tier 1 capital. Federal Reserve guidelines limit the amount of securities that, similar to our junior subordinated debentures, are includable in Tier 1 capital, but these guidelines did not impact the amount of debentures we include in Tier 1 capital. Although our existing junior subordinated debentures are currently unaffected by these Federal Reserve guidelines, on account of changes enacted as part of the Dodd-Frank Act, any new trust preferred securities are not includable in Tier 1 capital. Further, if we complete the proposed merger with The First (or we make any other acquisition of a financial institution) now that we have exceeded $15,000,000 in assets, we will lose Tier 1 treatment of our junior subordinated debentures.  The Company has subordinated notes with a carrying value of $316,698 at December 31, 2024, and $316,422 at December 31, 2023 included in the Company’s Tier 2 capital. 

The Federal Reserve, the FDIC and the Office of the Comptroller of the Currency have issued guidelines governing the levels of capital that bank holding companies and banks must maintain. Those guidelines specify capital tiers, which include the following classifications (which include the “capital conservation buffer” discussed below):

Capital TiersTier 1 Capital toAverage Assets(Leverage)Common Equity Tier 1 toRisk - Weighted AssetsTier 1 Capital toRisk - WeightedAssets Total Capital toRisk - WeightedAssetsWell capitalized5% or above6.5% or above 8% or above 10% or aboveAdequately capitalized4% or above4.5% or above 6% or above 8% or aboveUndercapitalizedLess than 4%Less than 4.5% Less than 6% Less than 8%Significantly undercapitalizedLess than 3%Less than 3% Less than 4% Less than 6%Critically undercapitalized Tangible Equity / Total Assets less than 2%

The following table includes the capital ratios and capital amounts for the Company and