XML 41 R23.htm IDEA: XBRL DOCUMENT v3.3.1.900
Restrictions on Cash, Bank Dividends, Loans or Advances
12 Months Ended
Dec. 31, 2015
Regulated Operations [Abstract]  
Restrictions on Cash, Bank Dividends, Loans or Advances
Restrictions on Cash, Bank Dividends, Loans or Advances
(In Thousands)
Renasant Bank is required to maintain minimum average balances with the Federal Reserve. At December 31, 2015 and 2014, Renasant Bank’s reserve requirements with the Federal Reserve were $55,237 and $52,295, respectively, with which it was in full compliance.
The Company’s ability to pay dividends to its shareholders is substantially dependent on the ability of Renasant Bank to transfer funds to the Company in the form of dividends, loans and advances. Under Mississippi law, a Mississippi bank may not pay dividends unless its earned surplus is in excess of three times capital stock. A Mississippi bank with earned surplus in excess of three times capital stock may pay a dividend, subject to the approval of the Mississippi Department of Banking and Consumer Finance. Accordingly, the approval of this supervisory authority is required prior to Renasant Bank paying dividends to the Company.
Federal Reserve regulations also limit the amount Renasant Bank may loan to the Company unless such loans are collateralized by specific obligations. At December 31, 2015, the maximum amount available for transfer from Renasant Bank to the Company in the form of loans was $70,159. As of December 31, 2015, no loans from the Bank to the Company were outstanding.
In connection with the acquisition of First M&F, the Company assumed an interest rate swap agreement designed to convert floating rate interest payments on subordinated debentures into fixed rate payments. The Company had pledged interest bearing bank balances as collateral to the interest rate swap counterparty in the amounts of $1,970 at December 31, 2015.