Renasant (US:RNST)2023-02-24 20:06Revenue Sources - Investment income from investment activities accounted for approximately 7.92%, 5.13%, and 4.46% of total gross revenues in 2022, 2021, and 2020, respectively[39]. - Fees generated through deposit services accounted for approximately 7.64%, 7.15%, and 5.88% of total gross revenues in 2022, 2021, and 2020, respectively[42]. - The Wealth Management segment generated total revenue of $27.6 million, representing 3.95% of the Company's total gross revenues in 2022[45]. - Renasant Insurance generated total revenue of $12.4 million, or 1.78% of the Company's total gross revenues in 2022[46]. Risk Management and Compliance - The Company actively manages its loan portfolio to avoid excessive concentrations, balancing among various loan categories[38]. - The Company monitors construction and land development loans to assess risk based on regulatory guidelines[38]. - The Company has established numerous controls and procedures to ensure compliance with the TRID rules and other consumer protection laws[95]. - The company has implemented policies to ensure compliance with federal anti-money laundering laws and regulations[100]. - The company is subject to various federal and state laws designed to protect consumers in its lending activities[93]. Capital Requirements - The Company is subject to risk-based capital guidelines, requiring a minimum Tier 1 capital ratio of at least 4%[59]. - Renasant Corporation is required to maintain a common equity Tier 1 capital (CET1) ratio of not less than 4.5% and a minimum total risk-based capital ratio of 8%[77]. - The capital conservation buffer required is 2.5% of CET1 to risk-weighted assets, which restricts the ability to pay dividends if the ratio falls below this buffer[77]. - Under current regulations, a bank is classified as "well capitalized" if it has total risk-based capital of 10% or more and a Tier 1 risk-based capital ratio of 8% or more[81]. Regulatory Environment - The Company has not elected to become a financial holding company, which would allow for broader financial activities without prior Federal Reserve approval[57]. - The Bank's ability to pay dividends is restricted by federal and state laws, requiring earned surplus to exceed three times capital stock for dividend payments[74]. - The FDIC may terminate the deposit insurance of any institution if it is determined to be engaging in unsafe practices or is in an unsafe condition[71]. - Renasant Bank must comply with federal consumer protection laws, subject to examination by the CFPB due to having more than $10 billion in assets[68]. - The FDIC's risk classification affects the assessment rate for deposit insurance, with higher risk classifications leading to higher rates[70]. - The Bank is subject to ongoing regulatory requirements for any investor seeking to acquire control of it, defined as owning 25% or more of voting securities[65]. Human Capital and Workforce - The company employed 2,334 people as of December 31, 2022, with 2,269 employees in the Bank and 65 in Renasant Insurance[106]. - The company has a strategic approach to human capital that includes attracting and retaining a diverse workforce and providing opportunities for development[106]. - The company has continued remote work arrangements for employees where feasible, reflecting updated guidance from health authorities[107]. Privacy and Consumer Protection - The company has adopted a privacy policy to govern the use and disclosure of personal financial information, ensuring compliance with applicable laws[99]. - The company received a "satisfactory" rating from the FDIC regarding its compliance with the Community Reinvestment Act in its most recent assessment[96]. Future Activities and Limitations - The Volcker Rule does not impact the company's current activities but limits future permissible activities[101].