v3.26.1
Trust Preferred Securities
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Trust Preferred Securities

Note 8: Trust Preferred Securities

The Company owns the outstanding common stock of business trusts that have issued preferred capital securities to third parties. Under a grandfathering provision in the Basel III capital rules that applies to bank holding companies with less than $15 billion in total consolidated assets, these preferred capital securities have qualified as Tier 1 capital for the Company, subject to regulatory rules and limits. These trusts used the proceeds from the issuance of the common stock and the preferred capital securities to purchase subordinated debentures issued by the Company. These subordinated debentures are these trusts’ only assets, and quarterly interest payments on these subordinated debentures are the sole source of cash for these trusts to pay quarterly distributions on the common stock and preferred capital securities. The Company has fully and unconditionally guaranteed the trusts’ obligations with respect to the preferred capital securities.

The Company has the right to defer the payment of interest on the subordinated debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on the subordinated debentures are deferred, the distributions on the trust preferred securities are also deferred. Interest on the subordinated debentures and distributions on the trust preferred securities are cumulative.

The following is a summary of subordinated debentures payable to statutory trusts.

 

(In thousands)

 

Year of
Maturity

 

Interest
Rate

 

March 31,
2026

 

 

December 31,
2025

 

First Bancshares of Baton Rouge Statutory Trust I

 

2034

 

Variable1

 

$

4,124

 

 

$

4,124

 

State Capital Statutory Trust IV

 

2035

 

Variable2

 

 

5,155

 

 

 

5,155

 

BancPlus Statutory Trust II

 

2036

 

Variable3

 

 

20,619

 

 

 

20,619

 

BancPlus Statutory Trust III

 

2037

 

Variable4

 

 

20,619

 

 

 

20,619

 

State Capital Master Trust

 

2037

 

Variable5

 

 

6,186

 

 

 

6,186

 

 

 

 

 

 

 

$

56,703

 

 

$

56,703

 

 

 

 

 

 

 

 

 

 

 

 

(1) Reprices quarterly based on three-month CME Term SOFR plus 2.50%, plus 0.26161% SOFR spread adjustment

 

(2) Reprices quarterly based on three-month CME Term SOFR plus 1.99%, plus 0.26161% SOFR spread adjustment

 

(3) Reprices quarterly based on three-month CME Term SOFR plus 1.50%, plus 0.26161% SOFR spread adjustment

 

(4) Reprices quarterly based on three-month CME Term SOFR plus 1.35%, plus 0.26161% SOFR spread adjustment

 

(5) Reprices quarterly based on three-month CME Term SOFR plus 1.46%, plus 0.26161% SOFR spread adjustment

 

 

The subordinated debentures payable to statutory trusts vary from the amount carried on the Consolidated Balance Sheets at March 31, 2026 and December 31, 2025, due to the remaining purchase discount of $3.0 million at each period end, which was established upon the merger (the “SCC Merger”) with State Capital Corp. (“SCC”), in which BancPlus acquired SCC, the holding company of State Bank & Trust Company (“State Bank”) by a statutory share exchange and SCC was merged with and into BancPlus and State Bank was merged with and into BankPlus, with BancPlus and BankPlus surviving the mergers, which closed on April 1, 2020, and is being amortized over the remaining life of the debentures.

Interest rates adjust quarterly for the subordinated debentures with rates indexed with SOFR.

The Company has the right to redeem the subordinated debentures prior to maturity. Upon redemption of the subordinated debentures payable to a statutory trust, the trust will also liquidate its common stock and preferred capital securities.