Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 29, 2022 | Jun. 30, 2021 | |
Document Information Line Items | |||
Entity Registrant Name | TECTONIC FINANCIAL, INC. | ||
Trading Symbol | TECTP | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 7,056,633 | ||
Entity Public Float | $ 0 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001766526 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | true | ||
ICFR Auditor Attestation Flag | true | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-38910 | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Address, State or Province | TX | ||
Entity Tax Identification Number | 82-0764846 | ||
Entity Address, Address Line One | 16200 Dallas Parkway, Suite 190 | ||
Entity Address, City or Town | Dallas | ||
Entity Address, Postal Zip Code | 75248 | ||
City Area Code | 972 | ||
Local Phone Number | 720-9000 | ||
Title of 12(b) Security | Series B preferred stock, $0.01 par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Auditor Name | Whitley Penn LLP | ||
Auditor Location | Dallas, Texas | ||
Auditor Firm ID | 726 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 10,203,000 | $ 7,515,000 |
Interest-bearing deposits | 35,311,000 | 38,579,000 |
Federal funds sold | 478,000 | 774,000 |
Total cash and cash equivalents | 45,992,000 | 46,868,000 |
Securities available for sale | 17,156,000 | 17,396,000 |
Securities held to maturity | 19,673,000 | 5,776,000 |
Securities, restricted at cost | 2,432,000 | 2,431,000 |
Securities, not readily marketable | 100,000 | 100,000 |
Loans held for sale | 33,762,000 | 14,864,000 |
Loans, net of allowance for loan losses of $4,152 and $2,941, respectively | 424,595,000 | 397,601,000 |
Bank premises and equipment, net | 4,729,000 | 4,849,000 |
Other real estate | 1,079,000 | 0 |
Core deposit intangible, net | 777,000 | 979,000 |
Goodwill | 21,440,000 | 10,729,000 |
Deferred tax assets | 405,000 | 83,000 |
Other assets | 12,871,000 | 11,750,000 |
Total assets | 585,011,000 | 513,426,000 |
LIABILITIES | ||
Non-interest-bearing | 88,876,000 | 57,112,000 |
Interest-bearing | 147,909,000 | 116,278,000 |
Time deposits | 207,384,000 | 174,625,000 |
Total deposits | 444,169,000 | 348,015,000 |
Borrowed funds | 34,521,000 | 83,690,000 |
Subordinated notes | 12,000,000 | 12,000,000 |
Other liabilities | 9,534,000 | 9,708,000 |
Total liabilities | 500,224,000 | 453,413,000 |
SHAREHOLDERS’ EQUITY | ||
Common stock ($0.01 par value; 40,000,000 shares authorized; 7,061,953 and 6,568,750 shares issued and outstanding at December 31, 2021 and 2020, respectively) | 71,000 | 66,000 |
Additional paid-in capital | 50,176,000 | 39,201,000 |
Retained earnings | 34,851,000 | 20,661,000 |
Accumulated other comprehensive (loss) income | (328,000) | 68,000 |
Total shareholders’ equity | 84,787,000 | 60,013,000 |
Total liabilities and shareholders’ equity | 585,011,000 | 513,426,000 |
Series B Preferred Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Preferred stock, value | $ 17,000 | $ 17,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans, allowance for loan losses (in Dollars) | $ 4,152 | $ 2,941 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 7,061,953 | 6,568,750 |
Common stock, shares outstanding | 7,061,953 | 6,568,750 |
Series B Preferred Stock [Member] | ||
Preferred stock, shares issued | 1,725,000 | 1,725,000 |
Preferred stock, shares outstanding | 1,725,000 | |
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,725,000 | 1,725,000 |
Preferred stock, non-cumulative | 9.00% | 9.00% |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Income | ||
Loan, including fees | $ 28,379 | $ 19,936 |
Securities | 955 | 839 |
Federal funds sold | 1 | 2 |
Interest-bearing deposits | 49 | 101 |
Total interest income | 29,384 | 20,878 |
Interest Expense | ||
Deposits | 2,482 | 4,223 |
Borrowed funds | 1,145 | 1,046 |
Total interest expense | 3,627 | 5,269 |
Net interest income | 25,757 | 15,609 |
Provision for loan losses | 2,214 | 1,709 |
Net interest income after provision for loan losses | 23,543 | 13,900 |
Non-interest Income | ||
Trust income | 6,252 | 5,118 |
Gain on sale of loans | 101 | 722 |
Advisory income | 13,472 | 14,054 |
Brokerage income | 9,644 | 7,676 |
Service fees and other income | 6,790 | 5,832 |
Rental income | 365 | 319 |
Total non-interest income | 36,624 | 33,721 |
Non-interest Expense | ||
Salaries and employee benefits | 24,947 | 22,231 |
Occupancy and equipment | 1,837 | 1,919 |
Trust expenses | 2,416 | 1,994 |
Brokerage and advisory direct costs | 2,051 | 2,048 |
Professional fees | 1,539 | 1,345 |
Data processing | 964 | 774 |
Other | 4,576 | 3,388 |
Total non-interest expense | 38,330 | 33,699 |
Income before Income Taxes | 21,837 | 13,922 |
Income tax expense | 4,803 | 2,997 |
Net Income | 17,034 | 10,925 |
Preferred stock dividends | 1,552 | 1,552 |
Net income available to common stockholders | $ 15,482 | $ 9,373 |
Earnings per common share: | ||
Basic (in Dollars per share) | $ 2.28 | $ 1.43 |
Diluted (in Dollars per share) | $ 2.21 | $ 1.42 |
Weighted average common shares outstanding (in Shares) | 6,804,228 | 6,568,750 |
Weighted average diluted shares outstanding (in Shares) | 7,021,766 | 6,584,113 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 17,034 | $ 10,925 |
Other Comprehensive (Loss) Income: | ||
Change in unrealized (loss) gain on investment securities available for sale | (502) | 19 |
Tax effect | (106) | 5 |
Other comprehensive (loss) income | (396) | 14 |
Comprehensive Income | $ 16,638 | $ 10,939 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Series B Preferred Stock [Member]Preferred Stock [Member] | Series B Preferred Stock [Member]Retained Earnings [Member] | Series B Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Dec. 31, 2019 | $ 17 | $ 66 | $ 39,050 | $ 11,288 | $ 54 | $ 50,475 | ||
Dividends paid on preferred stock | (1,552) | (1,552) | ||||||
Net income | 10,925 | 10,925 | ||||||
Other comprehensive (loss) income | 14 | 14 | ||||||
Stock based compensation | 151 | 151 | ||||||
Balance at Dec. 31, 2020 | 17 | 66 | 39,201 | 20,661 | 68 | 60,013 | ||
Note receivable issued for stock | 5 | 10,645 | 10,650 | |||||
Dividends paid on common stock | (1,292) | (1,292) | ||||||
Dividends paid on preferred stock | $ (1,552) | $ (1,552) | (1,552) | |||||
Net income | 17,034 | 17,034 | ||||||
Other comprehensive (loss) income | (396) | (396) | ||||||
Stock based compensation | 330 | 330 | ||||||
Balance at Dec. 31, 2021 | $ 17 | $ 71 | $ 50,576 | $ 34,851 | $ (328) | $ 84,787 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 17,034 | $ 10,925 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Provision for loan losses | 2,214 | 1,709 |
Depreciation and amortization | 342 | 433 |
Accretion of discount on loans | (104) | (74) |
Core deposit intangible amortization | 202 | 201 |
Securities premium amortization, net | 117 | 61 |
Origination of loans held for sale | (67,022) | (41,582) |
Proceeds from payments and sales of loans held for sale | 5,449 | 10,793 |
Gain on sale of loans | (101) | (722) |
Stock based compensation | 330 | 151 |
Deferred income taxes | (216) | (281) |
Net change in: | ||
Servicing assets, net | 326 | 261 |
Other assets | (1,178) | (5,242) |
Other liabilities | (428) | 2,921 |
Net cash provided by (used in) operating activities | (43,035) | (20,446) |
Cash Flows from Investing Activities | ||
Acquisition of business | (3,185) | 0 |
Purchase of securities held to maturity | (16,995) | 0 |
Purchase of securities available for sale | (403,000) | (343,246) |
Principal payments, calls and maturities of securities available for sale | 402,659 | 338,513 |
Principal payments of securities held to maturity | 3,060 | 543 |
Purchase of securities, restricted | (11,524) | (9,277) |
Proceeds from sale of securities, restricted | 11,524 | 9,263 |
Net change in loans | 47,118 | (83,176) |
Purchases of premises and equipment | (178) | (61) |
Net cash provided by (used in) investing activities | 29,479 | (87,441) |
Cash Flows from Financing Activities | ||
Net change in demand deposits | 60,861 | 74,141 |
Net change in time deposits | 32,759 | (9,727) |
Proceeds from borrowed funds | 556,793 | 468,641 |
Repayment of borrowed funds | (634,889) | (396,951) |
Dividends paid on common stock | (1,292) | 0 |
Dividends paid on Series B preferred shares | (1,552) | (1,552) |
Net cash provided by financing activities | 12,680 | 134,552 |
Net change in cash and cash equivalents | (876) | 26,665 |
Cash and cash equivalents at beginning of period | 46,868 | 20,203 |
Cash and cash equivalents at end of period | 45,992 | 46,868 |
Non Cash Transactions | ||
Transfers from loans held for sale to loans held for investment | 42,757 | 26,389 |
Common stock issued in Integra acquisition (Note 18) | 10,650 | 0 |
Stock options exercised in exchange for note receivable | 400 | 0 |
Transfers from loans to other real estate owned | 1,079 | 0 |
Cash paid during the year for: | ||
Interest | 3,662 | 5,268 |
Income taxes | $ 5,427 | $ 3,023 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations Tectonic Financial, Inc. (the “Company,” “we,” “us,” or “our”) is a financial holding company that offers, through its subsidiaries, banking and other financial services including trust, investment advisory, securities brokerage, factoring, third-party administration, qualified plan recordkeeping and insurance services to individuals, small businesses and institutions across the United States. We operate through four main direct and indirect subsidiaries: (i) T Bancshares, Inc. (“T Bancshares”), which was incorporated under the laws of the State of Texas on December 23, 2002 to serve as the bank holding company for T Bank, N.A., a national association (the “Bank”), (ii) Sanders Morris Harris LLC (“Sanders Morris”), a registered broker-dealer with the Financial Industry Regulatory Authority (“FINRA”), and registered investment advisor with the Securities and Exchange Commission, (“SEC”), (iii) Tectonic Advisors, LLC (“Tectonic Advisors”) a registered investment advisor registered with the SEC focused generally on managing money for relatively large, affiliated institutions as well as for their clients, which include individuals, businesses, and qualified plans, and (iv) HWG Insurance Agency LLC (“HWG”), an insurance agency registered with the Texas Department of Insurance (“TDI”). We are headquartered in Dallas, Texas. The Bank operates through a main office located at 16200 Dallas Parkway, Dallas, Texas. Our other subsidiaries operate from offices in Houston, Dallas, and Plano, Texas. Our Houston office is located at 600 Travis Street, 59th Floor, Houston, Texas, and includes the home offices of Sanders Morris and HWG, as well as Tectonic Advisors’ family office services team. Our Dallas office, which is a branch office of Sanders Morris, is at 5950 Sherry Lane, Suite 470, Dallas, Texas. Our main office for Tectonic Advisors is in Plano at 6900 Dallas Parkway, Suite 625, Plano, Texas, and also includes a branch office of HWG. The Bank offers a broad range of commercial and consumer banking and trust services primarily to small- to medium-sized businesses and their employees, and other institutions. The Nolan Company (“Nolan”), operating from its office in Overland Park, Kansas as a division within the bank, offers third party administration (“TPA”) services, and Integra Funding Solutions, LLC (“Integra”), operating from its Fort Worth, Texas office as a division within the Bank, offers factoring services. The Bank’s technological capabilities, including worldwide free ATM withdrawals, sophisticated on-line banking capabilities, electronic funds transfer capabilities, and economical remote deposit solutions, allow most customers to be served regardless of their geographic location. The Bank serves its local geographic market which includes Dallas, Tarrant, Denton, Collin and Rockwall counties which encompass an area commonly referred to as the Dallas/Fort Worth Metroplex. The Bank also serves the dental and other health professional industries through a centralized loan and deposit platform that operates out of its main office in Dallas, Texas. In addition, the Bank serves the small business community by offering loans guaranteed by the Small Business Administration (“SBA”) and the U.S. Department of Agriculture (“USDA”). The Bank offers a wide range of deposit services including demand deposits, regular savings accounts, money market accounts, individual retirement accounts, and certificates of deposit with fixed rates and a range of maturity options. Lending services include commercial loans to small- to medium-sized businesses and professional concerns as well as consumers. The Bank also offers wealth management and trust services. The Bank’s traditional fiduciary services clients primarily consist of clients of Cain Watters & Associates L.L.C. (“Cain Watters”). The Bank, Cain Watters and Tectonic Advisors entered into an advisory services agreement related to the trust operations in April 2006, which has been amended from time to time, most recently in July 2016. See Note 13, Related Parties Basis of Presentation Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period, as well as the disclosures provided. Changes in assumptions or in market conditions could significantly affect the estimates. The determination of the allowance for loan losses, the fair value of stock options, the fair values of financial instruments and other real estate owned, and the status of contingencies are particularly susceptible to significant change in recorded amounts. Cash and Cash Equivalents The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to significant credit risk on cash and cash equivalents. For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash on hand, deposits with other financial institutions, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions. Trust Assets Property held for customers in a fiduciary capacity, other than trust cash on deposit at the Bank, is not included in the accompanying consolidated financial statements since such items are not assets of the Company. Securities Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them until maturity. Securities to be held for indefinite periods of time are classified as available for sale and carried at fair value, with the unrealized holding gains and losses reported as a component of other comprehensive income, net of tax. Securities held for resale are classified as trading and are carried at fair value, with changes in unrealized holding gains and losses included in income. Management determines the appropriate classification of securities at the time of purchase. Securities with limited marketability, such as stock in the FRB and the FHLB are carried at cost. The Company has investments in stock of the FRB and the FHLB as is required for participation in the services offered. These investments are classified as restricted and are recorded at cost. Securities, not readily marketable are carried at cost. Interest income includes amortization of purchase premiums and accretion of purchase discounts. Premiums and discounts on securities are amortized on the interest method with a constant effective yield without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable securities are amortized to their earliest call date. Gains and losses are recorded on the trade date and determined using the specific identification method. Declines in the fair value of available for sale securities below their cost that are deemed to be other-than-temporary-impairment (“OTTI”) are reflected in earnings as realized losses to the extent the impairment related to credit losses. The amount of impairment related to other factors is recognized in other comprehensive income. In estimating OTTI losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery of amortized cost. At December 31, 2021 and 2020, no securities were determined to be other-than-temporarily impaired. Factored Receivables Integra, operating as a division of the Bank, purchases invoices on completed work from its factoring clients. Integra also makes, from time to time, short-term advances to its clients on transportation contracts for upcoming loads or, to a much lesser extent, makes over-advances on the existing purchased invoices. Funds are advanced to the client based on the applicable advance rate, less fees, as agreed to in each individual factoring agreement. The gross amount (face value) of the invoices purchased are recorded by Integra as factored receivables, and the unadvanced portions of the invoices purchased, less discount and origination fees, are considered deferred client reserves and recorded as other liabilities in the Company’s consolidated balance sheets. The deferred client reserves are held to settle any payment disputes or collection short payments, and become reserves due to client when the receivables are collected. Reserves due to client may be used to pay clients’ obligations to various third parties as directed by the client, are periodically withdrawn by clients, and are reported as deposits in the Company’s consolidated balance sheets. Unearned factoring fees and unearned net origination fees are deferred revenue and recognized as interest income in the Company’s consolidated income statements over the weighted average collection period for the entire portfolio of factored receivables. Subsequent factoring fees are recognized in interest income as incurred by the client and deducted from the clients’ reserve balances. Other factoring-related fees, which include ACH and wire transfer fees, fuel card funding fees, carrier payment fees, fuel advance fees, and other similar fees, are recognized as incurred and are reported by the Company as non-interest income. Loans Held for Sale Loans which are originated or purchased and are intended for sale in the secondary market are carried at the lower of cost or estimated fair value determined on an aggregate basis. Valuation adjustments, if any, are recognized through a valuation allowance by charges to non-interest income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in non-interest income upon sale of the loan. Loans held for sale are comprised of the guaranteed portion of SBA and USDA loans. The Company did not incur a lower of cost or market valuation provision in the years ended December 31, 2021 and 2020. The Company elected to reclassify $42.8 million and $26.4 million of the SBA 7(a) loans held for sale to loans held for investment during the year ended December 31, 2021 and 2020, respectively. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, unearned discount, deferred loan fees, and allowance for loan losses. Interest income is accrued on the unpaid principal balance. Discount on acquired loans and net loan origination fees are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on commercial business and commercial real estate loans is discontinued when the loan becomes 90 days delinquent unless the credit is well secured and in process of collection. Unsecured consumer loans are generally charged off when the loan becomes 90 days past due. Consumer loans secured by collateral other than real estate are charged off after a review of all factors affecting the ability to collect on the loan, including the borrower’s history, overall financial condition, resources, guarantor support, and the realizable value of any collateral. However, any consumer loan past due 180 days is charged off. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on non-accrual are reversed against interest income. Interest received on such loans is accounted for on a cash-basis or cost-recovery method, until qualifying for return to accrual basis. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses, increased by the provision for loan losses and decreased by charge-offs less recoveries. Management estimates the allowance balance required by considering the collectability of loans based on historical experience and the borrower’s ability to repay, the nature and volume of the portfolio, information about specific borrower situations and the estimated value of any underlying collateral, economic conditions and other factors. The allowance consists of general and specific reserves. The specific component relates to loans that are individually evaluated and determined to be impaired. This amount of allowance is often based on variables affecting valuation, appraisals of collateral, evaluations of performance and status, and the amounts and timing of future cash flows expected to be received. The general component relates to the entire group of loans that are evaluated in the aggregate based primarily on industry historical loss experience adjusted for current economic factors. To the extent actual loan losses differ materially from management’s estimate of these subjective factors, loan growth/run-off accelerates, or the mix of loan types changes, the level of the provision for loan loss, and related allowance can, and will, fluctuate. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include, among others, payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loan impairment on loans is generally based upon the present value of the expected future cash flows discounted at the loan’s initial effective interest rate, unless the loans are collateral dependent, in which case loan impairment is based upon the fair value of collateral less estimated selling costs. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 39 years. Furniture and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. Land improvements are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. Leasehold improvements are depreciated using the straight-line method over the lease term or estimated life, whichever is shorter. Repair and maintenance costs are expensed as incurred. We lease certain office facilities and office equipment under operating leases. We also own certain office facilities which we lease to outside parties under operating lessor leases. Under the lease standards, for operating leases other than those considered to be short-term, we recognize lease right-of-use assets and related lease liabilities. Such amounts are reported as components of other assets and other liabilities, respectively, on our accompanying consolidated balance sheet. We do not recognize short-term operating leases on our balance sheet. A short-term operating lease has an original term of 12 months or less and does not have a purchase option that is likely to be exercised. In recognizing lease right-of-use assets and related lease liabilities, we account for lease and non-lease components (such as taxes, insurance, and common area maintenance costs) separately as such amounts are generally readily determinable under our lease contracts. Lease payments over the expected term are discounted using our incremental borrowing rate referenced to the Federal Home Loan Bank Secure Connect advance rates for borrowings of similar term. We also consider renewal and termination options in the determination of the term of the lease. If it is reasonably certain that a renewal or termination option will be exercised, the effects of such options are included in the determination of the expected lease term. Generally, we cannot be reasonably certain about whether or not we will renew a lease until such time the lease is within the last two years of the existing lease term. However, renewal options related to our regional headquarters facilities or operations centers are evaluated on a case-by-case basis, typically in advance of such time frame. When we are reasonably certain that a renewal option will be exercised, we measure/remeasure the right-of-use asset and related lease liability using the lease payments specified for the renewal period or, if such amounts are unspecified, we generally assume an increase (evaluated on a case-by-case basis in light of prevailing market conditions) in the lease payment over the final period of the existing lease term. Foreclosed Assets Assets acquired through or instead of loan foreclosure are held for sale and are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis. Costs after acquisition are generally expensed. If the fair value of the asset declines, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. The Company had $1.1 million in foreclosed assets at December 31, 2021 reported in other real estate in the Company’s consolidated balance sheets, and no foreclosed assets at December 31, 2020. Servicing Rights The guaranteed portion of certain SBA and USDA loans can be sold into the secondary market. Servicing rights are recognized as separate assets when loans are sold with servicing retained. Servicing rights are amortized in proportion to, and over the period of, estimated future net servicing income. The Company uses industry prepayment statistics in estimating the expected life of the loans. Management evaluates its servicing rights for impairment quarterly. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Fair value is determined using discounted future cash flows calculated on a loan-by-loan basis and aggregated by predominant risk characteristics. The initial servicing rights and resulting gain on sale are calculated based on the difference between the actual par and bids on an individual loan basis. Intangible Assets Intangible assets consist of goodwill and core deposit intangibles. Goodwill represents the excess purchase price over the fair value of net assets acquired in business acquisitions. The core deposit intangible represents the excess intangible value of acquired deposit customer relationships as determined by valuation specialists. The core deposit intangibles are being amortized over 58 to 100 months on a straight-line basis. Goodwill is not amortized but rather is evaluated for impairment on at least an annual basis. The Company performed its annual impairment test of goodwill and core deposit intangibles during 2021 and 2020, as required by FASB ASC 350, Intangibles Goodwill and Other Stock Based Compensation The Company has a share-based employee compensation plan, which is described more fully in Note 11. The Company accounts for it stock-based compensation in accordance with applicable accounting guidance for share-based payments. This guidance requires all share-based payments to be recognized on the consolidated statements of income based on their fair values. Compensation costs for awards with graded vesting are recognized on a straight-line basis over the vesting period. Advertising Costs Advertising costs are expensed as incurred. Advertising costs totaled $370,000 and $40,000 for the years ended December 31, 2021 and 2020, respectively. Income Taxes The Company accounts for income taxes utilizing the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company accounts for uncertainties in income taxes in accordance with current accounting guidance which prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of cumulative benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. No uncertain tax positions have been recognized. The Company files a consolidated income tax return with our subsidiaries. Federal income tax expense or benefit has been allocated to subsidiaries on a separate return basis. Comprehensive Income Comprehensive income consists of net income and other comprehensive (loss) income. Other comprehensive (loss) income includes net unrealized gains and losses on available for sale securities, which are recognized as a separate component of equity. Comprehensive income for the years ended December 31, 2021 and 2020 is reported in the accompanying consolidated statements of comprehensive income. Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Transfer of financial assets are comprised of the guaranteed portion of SBA and USDA loans which have been sold. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 16. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. Revenue Recognition The Company recognizes revenue in accordance with FASB ASC 606, Revenue from Contracts with Customers ( Topic 606 ) The Company derives a portion of its revenue from loan and investment income which are specifically excluded from the scope of this standard. Of the Company’s remaining sources of income, substantially all sources of banking revenue are recognized either by transaction (ATM, interchange, wire transfer, etc.) or when the Company charges a customer for a service that has already been rendered (monthly service charges, account fees, monthly trust management fees, monthly premise rental income, etc.). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Other non-interest income primarily includes items such as gains on the sale of loans held for sale and servicing fees, none of which are subject to the requirements of Topic 606. Revenue from contracts with customers includes fees from asset management services and commission income and fees and commissions from investment banking services. Under Topic 606, the recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company’s progress under the related agreement; and whether constraints on variable consideration should be applied due to uncertain future events. Advisory Fees Investment advisory fees Performance fees: Other advisory fees Commissions Brokerage commissions : Syndication and private placement commissions Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation but have no effect on the reported results of operations. Earnings per Share Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods: Years ended December 31, (In thousands, except per share data) 2021 2020 Net income available to common shareholders $ 15,482 $ 9,373 Average shares outstanding 6,804 6,569 Effect of common stock-based compensation 218 15 Average diluted shares outstanding 7,022 6,584 Basic earnings per share $ 2.28 $ 1.43 Diluted earnings per share $ 2.21 $ 1.42 As of December 31, 2021, options to purchase 190,000 shares of common stock, with a weighted average exercise price of $5.37, were included in the computation of diluted net earnings per share. In addition, as of December 31, 2021, 210,000 shares of restricted stock grants with a grant date fair value of $4.81 per share which vest from 2023 through 2025 were included in the diluted earnings per share calculation. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 2. Securities A summary of amortized cost and cost and fair value of securities is presented below. December 31, 2021 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 15,847 $ 4 $ 449 $ 15,402 Mortgage-backed securities 1,724 30 - 1,754 Total securities available for sale $ 17,571 $ 34 $ 449 $ 17,156 Securities held to maturity Property assessed clean energy $ 2,731 $ - $ - $ 2,731 Public Improvement District & TIRZ 16,942 - - 16,942 Total securities held to maturity $ 19,673 $ - $ - $ 19,673 Securities, restricted: Other $ 2,432 $ - $ - $ 2,432 Securities not readily marketable $ 100 $ - $ - $ 100 December 31, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 14,936 $ 38 $ 25 $ 14,949 Mortgage-backed securities 2,373 74 - 2,447 Total securities available for sale $ 17,309 $ 112 $ 25 $ 17,396 Securities held to maturity Property assessed clean energy $ 5,776 $ - $ - $ 5,776 Securities, restricted: Other $ 2,431 $ - $ - $ 2,431 Securities not readily marketable $ 100 $ - $ - $ 100 Securities available for sale consist of U.S. government agency securities and mortgage-backed securities guaranteed by U.S. government agencies. Securities held to maturity consist of Property Assessed Clean Energy (“PACE”) and Public Improvement District/Tax Increment Reinvestment Zone (“PID/TIRZ”) investments. These investment contracts or bonds located in Texas, California and Florida, originate under a contractual obligation between the property owners, the local county or city administration, and a third-party administrator and sponsor. PACE assessments are created to fund the purchase and installation of energy saving improvements to the property such as solar panels. PID/TIRZ assessments are used to pay for the development costs of a residential subdivision. Generally, as a property assessment, the total assessment is repaid in installments over a period of 5 to 32 years by the then current property owner(s). Each installment is collected by the County or City Tax Collector where the property is located. The assessments are an obligation of the property. Securities, restricted consist of Federal Reserve Bank of Dallas (“FRB”) and Federal Home Loan Bank of Dallas (“FHLB”) stock, which are carried at cost. As of December 31, 2021 and December 31, 2020 securities available for sale with a fair value of $163,000 and $554,000, respectively, were pledged against trust deposit balances held at the Bank. As of December 31, 2021 and 2020, there were no securities pledged to secure borrowings at the FHLB. As of December 31, 2021 and 2020, the Bank held FRB stock in the amount of $1.2 million and FHLB stock in the amount of $1.3 million, all of which were classified as restricted securities. As of December 31, 2021 and 2020, the Company held an income interest in a private investment, which is not readily marketable, accounted for under the cost less impairment method in the amount of $100,000. No allowance for impairment was recorded as of December 31, 2021 or 2020. The table below indicates the length of time individual investment securities have been in a continuous loss position as of December 31, 2021: Less than 12 months 12 months or longer Total (In thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ 9,438 $ 256 $ 5,803 $ 193 $ 15,241 $ 449 The number of investment positions in this unrealized loss position totaled twelve as of December 31, 2021. The Company does not believe these unrealized losses are “other than temporary” as (i) it does not have the intent to sell the securities prior to recovery and/or maturity and, (ii) it is more likely than not that the Company will not have to sell the securities prior to recovery and/or maturity. Accordingly, as of December 31, 2021, no impairment loss has been realized in the Company’s consolidated statements of income. In making this determination, the Company also considers the length of time and extent to which fair value has been less than cost and the financial condition of the issuer. Any unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The unrealized losses noted are primarily interest rate related due to the level of market interest rates as of December 31, 2021, compared to the time of purchase. The Company has reviewed the ratings of the issuers and has not identified any issues related to the ultimate repayment of principal as a result of credit concerns on these securities. The Company’s mortgage related securities are backed by the Government National Mortgage Association and the Federal National Mortgage Association, or are collateralized by securities backed by these agencies. Management believes the fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. The amortized cost and estimated fair value of securities at December 31, 2021 are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities are shown separately since they are not due at a single maturity date. Available for Sale Held to Maturity (In thousands) Amortized Cost Estimated Amortized Cost Estimated Fair Value Due in one year or less $ 21 $ 21 $ - $ - Due after one year through five years 1,995 1,927 2,707 2,707 Due after five years through ten years 10,157 9,916 - - Due after ten years 3,674 3,538 16,966 16,966 Mortgage-backed securities 1,724 1,754 - - Total $ 17,571 $ 17,156 $ 19,673 $ 19,673 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3. Loans and Allowance for Loan Losses Major classifications of loans held for investment are as follows: (In thousands) December 31, 2021 December 31, 2020 Commercial and industrial $ 83,348 $ 79,864 Consumer installment 1,099 10,259 Real estate – residential 5,452 4,319 Real estate – commercial 62,966 44,484 Real estate – construction and land 2,585 8,396 SBA: SBA 7(a) guaranteed 145,983 164,687 SBA 7(a) unguaranteed 52,524 52,179 SBA 504 35,348 35,553 USDA 806 801 Factored receivables 38,636 - Gross loans 428,747 400,542 Less: Allowance for loan losses 4,152 2,941 Net loans $ 424,595 $ 397,601 During the second quarter of 2020, the Company began participating in the Paycheck Protection Program (“PPP”) which was established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in response to the COVID-19 pandemic and administered by the SBA. The PPP loans may be forgiven by the SBA and are 100 percent guaranteed by the SBA. Therefore, no allowance for loan losses is allocated to PPP loans. Included in SBA 7(a) guaranteed loans, there were $34.1 million of PPP loans outstanding at December 31, 2021, as compared to $82.5 million of PPP loans outstanding at December 31, 2020. As of December 31, 2021, our loan portfolio included $67.3 million of loans, approximately 15.7% of our total funded loans (17.1% of total funded loans, net of the SBA PPP loans), to the dental industry, as compared to $67.2 million of loans, or 16.8% of total funded loans (21.1% of total funded loans, net of PPP loans), at December 31, 2020. The Bank believes that these loans are to credit worthy borrowers and are diversified geographically. The Company serves the small business community by offering loans promulgated under the SBA’s 7(a) and 504 loan programs, and loans guaranteed by the USDA. SBA 7(a) and USDA loans are typically guaranteed by each agency in amounts ranging from 75% to 80% of the principal balance. For SBA construction loans, the Company records the guaranteed funded portion of the loans as held for sale. When the SBA loans are fully funded, the Company may sell the guaranteed portion into the secondary market, on a servicing-retained basis, or reclassify from loans held for sale to loans held for investment if the Company determines that holding these loans provide better long-term risk adjusted returns than selling the loans. In calculating gain on the sale of loans, the Company performs an allocation based on the relative fair values of the sold portion and retained portion of the loan. The Company’s assumptions are validated by reference to external market information. The Company had $33.8 million and $14.9 million of non-PPP SBA loans held for sale as of December 31, 2021 and 2020, respectively. During the year ended December 31, 2021, the Company sold one non-PPP SBA loan for $1.1 million, resulting in a gain on sale of loans of $101,000. In connection with the sale, the Company recorded a servicing asset of $19,000. The Company elected to reclassify $42.8 million of the SBA 7(a) loans held for sale to loans held for investment during the year ended December 31, 2021. During the year ended December 31, 2020, the Company sold $9.8 million of SBA loans, resulting in a gain on sale of loans of $722,000. In connection with the sales, the Company recorded a servicing asset of $152,000. The Company elected to reclassify $26.4 million of the SBA 7(a) loans held for sale to loans held for investment during the year ended December 31, 2020. Loan Origination/Risk Management . The Company maintains written loan origination policies, procedures, and processes which address credit quality at several levels including individual loan level, loan type, and loan portfolio levels. Commercial and industrial loans, which are predominantly loans to dentists, are underwritten based on historical and projected income of the business and individual borrowers and guarantors. The Company utilizes a comprehensive global debt service coverage analysis to determine debt service coverage ratios. This analysis compares global cash flow of the borrowers and guarantors on an individual credit to existing and proposed debt after consideration of personal and business related other expenses. Collateral is generally a lien on all available assets of the business borrower including intangible assets. Credit worthiness of individual borrowers and guarantors is established through the use of credit reports and credit scores. Consumer loans are evaluated on the basis of credit worthiness as established through the use of credit reports and credit scores. Additional credit quality indicators include borrower debt to income ratios based on verifiable income sources. Real estate mortgage loans are evaluated based on collateral value as well as global debt service coverage ratios based on historical and projected income from all related sources including the collateral property, the borrower, and all guarantors where applicable. The Company originates SBA loans which are sometimes sold into the secondary market. The Company continues to service these loans after sale and is required under the SBA programs to retain specified amounts. The two primary SBA loan programs that the Company offers are the basic 7(a) loan guaranty program and the 504 loan program in conjunction with junior lien financing from a Certified Development Company (“CDC”). The 7(a) program serves as the SBA’s primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. Loan proceeds under this program can be used for most business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements and debt refinancing. Loan maturity is generally up to 10 years for non-real estate collateral and up to 25 years for real estate collateral. The 7(a) loan is approved and funded by a qualified lender, partially guaranteed by the SBA and subject to applicable regulations. In general, the SBA guarantees up to 75% (100% for PPP loans) of the loan amount depending on loan size. The Company is required by the SBA to service the loan and retain a contractual minimum of 5% on all SBA 7(a) loans, but generally retains 25% (the unguaranteed portion). The servicing spread is 1% of the guaranteed portion of the loan that is sold in the secondary market. Included in the 7(a) loans reflected in this Form 10-K are the PPP loans originated by the Company and outstanding as of December 31, 2021 and 2020. The 504 program is an economic development-financing program providing long-term, low down payment loans to businesses. Typically, a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100% SBA-guaranteed debenture) with a junior lien covering up to 40% of the total cost, and a contribution of at least 10% equity from the borrower. Debenture limits are $5.0 million for regular 504 loans and $5.5 million for those 504 loans that meet a public policy goal. The SBA has designated the Bank as a “Preferred Lender”. As a Preferred Lender, the Bank has been delegated loan approval, closing and most servicing and liquidation authority from the SBA. The Company also offers Business & Industry (“B&I”) program loans through the USDA. These loans are similar to the SBA product, except they are guaranteed by the USDA. The guaranteed amount is generally 80%. B&I loans are made to businesses in designated rural areas and are generally larger loans to larger businesses than the SBA 7(a) loans. Similar to the SBA 7(a) product, they can be sold into the secondary market. These loans can be utilized for rural commercial real estate and equipment. The loans can have maturities up to 30 years and the rates can be fixed or variable. Construction and land development loans are evaluated based on the borrower’s and guarantor’s credit worthiness, past experience in the industry, track record and experience with the type of project being considered, and other factors. Collateral value is determined generally by independent appraisal utilizing multiple approaches to determine value based on property type. For all loan types, the Company establishes guidelines for its underwriting criteria including collateral coverage ratios, global debt service coverage ratios, and maximum amortization or loan maturity terms. At the portfolio level, the Company monitors concentrations of loans based on several criteria including loan type, collateral type, industry, geography, and other factors. The Company also performs periodic market research and economic analysis at a local geographic and national level. Based on this research, the Company may from time to time change the minimum or benchmark underwriting criteria applied to the above loan types. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period of repayment performance by the borrower. As of December 31, 2021 and December 31, 2020, there were no loans identified as troubled debt restructurings. There were no new troubled debt restructurings during the years ended December 31, 2021 and 2020. Certain borrowers are currently unable to meet their contractual payment obligations because of the adverse effects of COVID-19. To help mitigate these effects, loan customers may apply for a deferral of payments, or portions thereof, for up to 90 days. After 90 days, customers may apply for an additional deferral, and a small proportion of our customers have requested such an additional deferral. In the absence of other intervening factors, such short-term modifications made on a good faith basis are not categorized as troubled debt restructurings, nor are loans granted payment deferrals related to COVID-19 reported as past due or placed on non-accrual status (provided the loans were not past due or on non-accrual status prior to the deferral). At December 31, 2021, there were two loans in COVID-19 related deferment with an aggregate outstanding balance of approximately $679,000. At December 31, 2020, there were 11 loans in COVID-19 related deferment with an aggregate outstanding balance of approximately $4.3 million. Non-accrual loans, segregated by class of loans, were as follows: (In thousands) December 31, 2021 December 31, 2020 Non-accrual loans: Commercial and industrial $ - $ 158 Real estate – commercial 149 - SBA guaranteed 2,039 1,118 SBA unguaranteed - 517 Total $ 2,188 $ 1,793 The Company’s impaired loans and related allowance is summarized in the following table: Unpaid Recorded Recorded Contractual Investment Investment Total Average Interest Principal With No With Recorded Related Recorded Income (In thousands) Balance Allowance Allowance Investment Allowance Investment Recognized December 31, 2021 Year Ended Commercial and industrial $ - $ - $ - $ - $ - $ 73 $ 4 SBA 3,658 3,071 - 3,071 - 6,333 21 Total $ 3,658 $ 3,071 $ - $ 3,071 $ - $ 6,406 $ 25 December 31, 2020 Year Ended Commercial and industrial $ - $ - $ - $ - $ - $ 10 $ - Real estate – construction and land - - - - - 313 - SBA 6,649 2,976 - 2,976 - 3,206 61 Total $ 6,649 $ 2,976 $ - $ 2,976 $ - $ 3,529 $ 61 Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The Company’s past due loans are as follows: Total 90 90 Days Days Past 30-89 Days or More Total Total Total Due Still (In thousands) Past Due Past Due Past Due Current Loans Accruing December 31, 2021 Commercial and industrial $ 4 $ - $ 4 $ 83,344 $ 83,348 $ - Consumer installment - - - 1,099 1,099 - Real estate – residential - - - 5,452 5,452 - Real estate – commercial 219 - 219 62,747 62,966 - Real estate – construction and land - - - 2,585 2,585 - SBA 1,762 - 1,762 232,093 233,855 - USDA - - - 806 806 - Factored receivables 1,743 400 2,143 36,493 38,636 400 Total $ 3,728 $ 400 $ 4,128 $ 424,619 $ 428,747 $ 400 December 31, 2020 Commercial and industrial $ - $ - $ - $ 79,864 $ 79,864 $ - Consumer installment - - - 10,259 10,259 - Real estate – residential - - - 4,319 4,319 - Real estate – commercial 121 158 279 44,205 44,484 - Real estate – construction and land - - - 8,396 8,396 - SBA - 1,635 1,635 250,784 252,419 - USDA - - - 801 801 - Total $ 121 $ 1,793 $ 1,914 $ 398,628 $ 400,542 $ - As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including internal credit risk based on past experiences as well as external statistics and factors. Loans are graded in one of six categories: (i) pass, (ii) pass-watch, (iii) special mention, (iv) substandard, (v) doubtful, or (vi) loss. Loans graded as loss are charged-off. The classifications of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on credits quarterly. No significant changes were made to the loan risk grading system definitions and allowance for loan loss methodology during the past year. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit. The Company’s methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Credits rated pass are acceptable loans, appropriately underwritten, bearing an ordinary risk of loss to the Company. Loans in this category are loans to highly credit worthy borrowers with financial statements presenting a good primary source as well as an adequate secondary source of repayment. Credits rated pass-watch loans have been determined to require enhanced monitoring for potential weaknesses which require further investigation. They have no significant delinquency in the past twelve months. This rating causes the loan to be actively monitored with greater frequency than pass loans and allows appropriate downgrade transition if verifiable adverse events are confirmed. This category may also include loans that have improved in credit quality from special mention but are not yet considered pass loans. Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness; however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly. Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Guaranteed portions of SBA loans graded substandard are generally on non-accrual due to the limited amount of interest covered by the guarantee, usually 60 days maximum. However, there typically will be no exposure to loss on the principal amount of these guaranteed portions of the loan. Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Loans classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this asset even though partial recovery may be affected in the future. The following table summarizes the Company’s internal ratings of its loans as of the dates indicated: Pass- Special (In thousands) Pass Watch Mention Substandard Doubtful Total December 31, 2021 Commercial and industrial $ 82,105 $ 1,243 $ - $ - $ - $ 83,348 Consumer installment 1,099 - - - - 1,099 Real estate – residential 5,242 - - 210 - 5,452 Real estate – commercial 62,817 - - 149 - 62,966 Real estate – construction and land 2,585 - - - - 2,585 SBA 213,630 16,265 2,659 1,301 - 233,855 USDA 806 - - - - 806 Factored receivables 38,636 - - - - 38,636 Total $ 406,920 $ 17,508 $ 2,659 $ 1,660 $ - $ 428,747 December 31, 2020 Commercial and industrial $ 79,134 $ 730 $ - $ - $ - $ 79,864 Consumer installment 10,259 - - - - 10,259 Real estate – residential 4,319 - - - - 4,319 Real estate – commercial 44,326 - - 158 - 44,484 Real estate – construction and land 8,396 - - - - 8,396 SBA 243,533 5,242 1,794 1,850 - 252,419 USDA 801 - - - - 801 Total $ 390,768 $ 5,972 $ 1,794 $ 2,008 $ - $ 400,542 The activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2021 and 2020 is presented below. Management has evaluated the adequacy of the allowance for loan losses by estimating the losses in various categories of the loan portfolio. (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Total December 31, 2021 Beginning Balance $ 928 $ 91 $ 52 $ 527 $ 100 $ 1,225 $ 18 $ - $ 2,941 Provision for loan losses 189 (76 ) 24 342 (60 ) 1,031 2 762 2,214 Charge-offs - - - - - (952 ) - (168 ) (1,120 ) Recoveries 37 - - - - 20 - 60 117 Net recoveries (charge-offs) 37 - - - - (932 ) - (108 ) (1,003 ) Ending balance $ 1,154 $ 15 $ 76 $ 869 $ 40 $ 1,324 $ 20 $ 654 $ 4,152 December 31, 2020 Beginning Balance $ 501 $ 27 $ 22 $ 347 $ 76 $ 435 $ - $ - $ 1,408 Provision for loan losses 394 64 30 180 24 999 18 - 1,709 Charge-offs - - - - - (218 ) - - (218 ) Recoveries 33 - - - - 9 - - 42 Net recoveries 33 - - - - (209 ) - - (176 ) Ending balance $ 928 $ 91 $ 52 $ 527 $ 100 $ 1,225 $ 18 $ - $ 2,941 The Company’s allowance for loan losses as of December 31, 2021 and 2020 by portfolio segment and detailed on the basis of the Company’s impairment methodology was as follows: (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Total December 31, 2021 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 1,154 15 76 869 40 1,324 20 654 4,152 Ending balance $ 1,154 $ 15 $ 76 $ 869 $ 40 $ 1,324 $ 20 $ 654 $ 4,152 December 31, 2020 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 928 91 52 527 100 1,225 18 - 2,941 Ending balance $ 928 $ 91 $ 52 $ 527 $ 100 $ 1,225 $ 18 $ - $ 2,941 The Company’s recorded investment in loans as of December 31, 2021 and 2020 related to each balance in the allowance for loan losses by portfolio segment and detailed on the basis of the Company’s impairment methodology was as follows: (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Total December 31, 2021 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 3,071 $ - $ - $ 3,071 Loans collectively evaluated for impairment 83,348 1,099 5,452 62,966 2,585 230,784 806 38,636 425,676 Ending balance $ 83,348 $ 1,099 $ 5,452 $ 62,966 $ 2,585 $ 233,855 $ 806 $ 38,636 $ 428,747 December 31, 2020 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 2,976 $ - $ - $ 2,976 Loans collectively evaluated for impairment 79,864 10,259 4,319 44,484 8,396 249,443 801 - 397,566 Ending balance $ 79,864 $ 10,259 $ 4,319 $ 44,484 $ 8,396 $ 252,419 $ 801 $ - $ 400,542 |
Premises and Equipment and Leas
Premises and Equipment and Leases | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 4. Premises and Equipment and Leases Year-end premises and equipment were as follows: (In thousands) December 31, 2021 December 31, 2020 Land $ 698 $ 698 Leasehold improvements 195 182 Building 4,438 4,256 Furniture and equipment 1,767 1,760 7,098 6,896 Less: accumulated depreciation 2,369 2,047 Balance at end of period $ 4,729 $ 4,849 Depreciation of premises and equipment totaled $322,000 and $412,000 for the years ended December 31, 2021 and 2020, respectively. The Company leases certain office facilities and office equipment under operating leases. Certain of the leases contain provisions for renewal options, escalation clauses based on increases in certain costs incurred by the lessor, as well as free rent periods and tenant improvement allowances. The Company amortizes office lease incentives and rent escalations on a straight-line basis over the life of the respective leases. The Company has obligations under operating leases that expire between 2022 and 2024 with initial non-cancellable terms in excess of one year. Under the lease accounting standards, right-of-use assets represent our right to utilize the underlying asset during the lease term, while the lease liability represents the obligation to make periodic lease payments over the life of the lease. As of December 31, 2021 and 2020, right-of-use assets and related lease liabilities totaled $1.4 million and $1.4 million, and $963,000 and $1.0 million, respectively, and are in other assets and other liabilities, respectively, on our accompanying consolidated balance sheets. As of December 31, 2021, the weighted average remaining lease term is 47 months, and the weighted average discount rate is 3.71%. As of December 31, 2021, the minimum rental commitments under these noncancelable operating leases are as follows: (In thousands) 2022 $ 549 2023 274 2024 208 2025 204 2026 207 2027 and thereafter 54 Total minimum rental payments 1,496 Less: Interest (63 ) Present value of lease liabilities $ 1,433 The Company currently receives rental income from seven tenants in its headquarters building for office space the Company does not occupy. Aggregate future minimum rentals to be received under non-cancelable leases as of December 31, 2021 were $734,000 through 2027. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Real Estate Owned [Text Block] | Note 5. Other Real Estate Owned A summary of the activity in OREO during the years ended December, 2021 and 2020 is as follows: For the years ended December 31, (In thousands) 2021 2020 Beginning balance $ - $ - Transfers from loan portfolio, at fair value 1,079 - Ending balance $ 1,079 $ - |
Goodwill and Core Deposit Intan
Goodwill and Core Deposit Intangible | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 6. Goodwill and Core Deposit Intangible Goodwill and core deposit intangible assets were as follows: (In thousands) December 31, 2021 December 31, 2020 Goodwill $ 21,440 $ 10,729 Core deposit intangible 777 979 The Company recorded goodwill of $10.7 million during the third quarter of 2021 in connection with the acquisition of Integra. Please see Note 18. Integra Acquisition Core deposit intangible is amortized on a straight-line basis over the estimated lives of the deposits, which range from five to twelve years. The core deposit intangible amortization totaled $202,000 and $201,000 for the years ended December 31, 2021 and 2020, respectively. The carrying basis and accumulated amortization of the core deposit intangible as of December 31, 2021 and 2020 were as follows: (In thousands) December 31, 2021 December 31, 2020 Gross carrying basis $ 1,708 $ 1,708 Accumulated amortization (931 ) (729 ) Net carrying amount $ 777 $ 979 The estimated amortization expense of the core deposit intangible for each of the following five years is as follows: (In thousands) 2022 $ 208 2023 210 2024 210 2025 149 Total $ 777 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Statistical Disclosure for Banks [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | Note 7. Deposits Deposits were as follows : (In thousands, except percentages) December 31, 2021 December 31, 2020 Non-interest bearing demand $ 88,876 20 % $ 57,112 16 % Interest-bearing demand (NOW) 6,459 1 5,060 2 Money market accounts 133,536 30 105,079 30 Savings accounts 7,914 2 6,139 2 Time deposits 207,384 47 174,625 50 Total $ 444,169 100 % $ 348,015 100 % The aggregate amount of demand deposit overdrafts that have been reclassified as loans as of December 31, 2021 and 2020 was insignificant. As of December 31, 2021 the scheduled maturities of time deposits were as follows: (In thousands) 2022 $ 166,669 2023 26,187 2024 8,171 2025 5,502 2026 855 Total $ 207,384 |
Borrowed Funds and Subordinated
Borrowed Funds and Subordinated Notes | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 8. Borrowed Funds and Subordinated Notes The Company has a blanket lien credit line with the FHLB with borrowing capacity of $52.5 million secured by commercial loans. The Company determines its borrowing needs and utilizes overnight advance accordingly at varying terms. The Company had no borrowings with FHLB as of December 31, 2021 and December 31, 2020. The Company also has a credit line with the FRB with borrowing capacity of $19.1 million, which is secured by commercial loans. The Company had no borrowings from the FRB at December 31, 2021 and December 31, 2020 under this credit line. As part of the CARES Act, the FRB offered secured discounted borrowings to banks who originated PPP loans through the Paycheck Protection Program Liquidity Facility (“PPPLF”). At December 31, 2021, the Bank pledged $34.5 million of PPP loans to the FRB under the PPPLF, and had borrowings of $34.5 million at a rate of 0.35%, with maturities of ranging from January 2026 to May 2026. At December 31, 2020, the Bank pledged $83.7 million of PPP loans to the FRB under the PPPLF, and had borrowings of $83.7 million at a rate of 0.35%, with maturities ranging from April 2022 through June 2022. PPP loans pledged as collateral for the PPPLF are excluded from the average assets used in the Company’s leverage ratio calculation. As of December 31, 2021 and 2020, the Company had subordinated notes totaling $12.0 million, consisting of $8.0 million issued in 2017 bearing an interest rate of 7.125% payable semi-annually and maturing on July 20, 2027, and $4.0 million issued in 2018 bearing interest rate of 7.125% payable semi-annually and maturing on March 31, 2028. The subordinated notes are unsecured and subordinated in right of payment to the payment of our existing and future senior indebtedness and structurally subordinated to all existing and future indebtedness of our subsidiaries. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Benefits [Text Block] | Note 9. Benefit Plans The Company funds certain costs for medical benefits in amounts determined at the discretion of management. The Company has a retirement savings 401(k) plan covering substantially all employees of the Bank, and a second plan covering substantially all employees of Sanders Morris and Tectonic Advisors. Under both the 401(k) plans covering the Company’s employees, an employee may contribute up to the annual maximum contribution allowed for a given year under IRS regulations. The Company matches 100% of the employee’s contribution on the first 1% of the employee’s compensation and 50% of the employee’s contribution on the next 5% of the employee’s compensation, up to the maximum amount under Internal Revenue Service regulations. At its discretion, the Company may also make additional annual contributions to the plan. The Plan is a participant directed plan, and as such, contributions to the plan are invested as directed by the respective plan participant. The amount of employer contributions charged to expense under the two plans was $503,000 and $409,000 for the years ended December 31, 2021 and 2020, respectively, and is included in salaries and employee benefits on the consolidated statements of income. There was no accrual payable to either plan as of December 31, 2021 and 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 10. Income Taxes The provision (benefit) for income taxes consists of the following: (In thousands) 2021 2020 Current: Federal $ 4,860 $ 3,248 State 159 30 Total current 5,019 3,278 Deferred federal (216 ) (281 ) Income tax expense $ 4,803 $ 2,997 The effective tax rate differs from the U. S. statutory tax rate due to the following for 2021 and 2020: 2021 2020 U.S. statutory rate 21.0 % 21.0 % Non-deductible stock compensation and various other 1.0 0.5 Effective tax rate 22.0 % 21.5 % A reconciliation between reported income tax expense and the amounts computed by applying the U.S. federal statutory income tax rate of 21% to income before income taxes is presented in the following table. (In thousands) 2021 2020 Income tax expense computed at the statutory rate $ 4,552 $ 2,917 State income tax 159 30 Other 92 50 Income tax expense, as reported $ 4,803 $ 2,997 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 are as follows: (In thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 872 $ 618 Non-accrual loan interest 232 70 Servicing asset valuation allowance 13 13 Accrued liabilities 193 68 Stock compensation 102 73 Paycheck protection program deferred loan fees 37 343 Available for sale securities discount accretion 5 10 Net unrealized loss on securities available for sale 87 - Total deferred tax assets 1,541 1,195 Deferred tax liabilities: Net deferred loan costs (471 ) (371 ) Depreciation and amortization (233 ) (314 ) Held-to-maturity securities premium (45 ) (57 ) Loan discount (125 ) (93 ) Intangible assets (262 ) (258 ) Net unrealized gain on securities available for sale - (19 ) Total deferred tax liabilities (1,136 ) (1,112 ) Net deferred tax asset $ 405 $ 83 Projections for continued levels of profitability will be reviewed quarterly and any necessary adjustments to the deferred tax assets will be recognized in the provision or benefit for income taxes. In assessing the realization rate of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. No valuation allowance for deferred tax assets was recorded at December 31, 2021 and 2020, as management believes it is more likely than not that all of the deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | Note 11. Stock Compensation Plans The board of directors and shareholders adopted the Amended and Restated Tectonic Financial, Inc. 2017 Equity Incentive Plan (“Plan”). The Plan is administered by the Compensation Committee of the Board and authorizes the granting of options, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants in order to promote the success of the Company’s business. Incentive stock options may be granted only to employees of the Company, or a parent or subsidiary of the Company. The Company reserved 750,000 authorized shares of common stock for the Plan. The term of each option is no longer than 10 years from the date of the grant. At December 31, 2021, the Company had 310,000 shares of common stock remaining available for future grants. The Company accounts for stock-based employee compensation plans using the fair value-based method of accounting. The fair value of each option award is estimated on the date of grant by a third party using a closed form option valuation (Black-Scholes) model. The fair value of each grant award is estimated on the date of grant by a third party using the market approach based on the application of latest 12-month Company metrics to guideline public company multiples. On September 27, 2021, 40,000 shares of restricted stock of the Company with an exercise price of $10.00 and an intrinsic value of $6.92 were granted with a contract life through December 31, 2021. Sanders Morris issued a full recourse secured promissory note at the time of the grant. These shares of restricted stock vested immediately, and were exercised on October 29, 2021, with the grantees utilizing the proceeds of the promissory note from Sanders Morris to fund the exercise price. This note receivable is recognized within a contra-equity account, with payments by the grantees reducing this balance as they occur. Once exercised, the shares are subject to a right of repurchase by the Company under certain circumstances through December 31, 2023. No other options on restricted stock were issued or exercised during the years ended December 31, 2021 or 2020. The number of option shares outstanding was 190,000 as of December 31, 2021 and 2020, and the weighted average exercise price was $5.37 in each year. The weighted average contractual life of the stock awards as of December 31, 2021 and 2020 was 5.62 years and 6.37 years, respectively. Stock options outstanding at the end of the period had immaterial aggregate intrinsic values. The weighted-average grant date fair value of the options as of December 31, 2021 and 2020 was $1.94. Under Topic 805, the grant date fair value has been restated as though the Tectonic Merger, under which Tectonic Holdings, LLC merged with and into Tectonic Financial, Inc., had occurred upon the date at which the entities came under common control. As of December 31, 2021, all 190,000 stock options outstanding were vested, and unrecognized compensation cost totaled $160,000, all of which was related to the right of repurchase period for the 40,000 shares of restricted stock issued and exercised in 2021. The Company recorded compensation expense on a straight-line basis over the vesting periods, and for the 40,000 shares of restricted stock granted September 27, 2021, over the right of repurchase period. The Company recorded salaries and employee benefits expense on our consolidated statements of income in connection with the options issued and restricted stock issued under the plan of $48,000 and $79,000 for the years ended December 31, 2021 and 2020, respectively. On September 30, 2020, the Company granted restricted stock awards totaling 210,000 shares of common stock. The fair value of each grant award was estimated on the date of grant by a third party using the market approach based on the application of latest 12-month Company metrics to guideline public company multiples. The vesting schedules vary by award, with all of the awards vesting over a three year period from 2023 through 2025. The restricted stock awards are subject to accelerated vesting due to death, total disability, or change in control of the Company. As of December 31, 2021, all 210,000 awarded shares were outstanding. The Company is recording compensation expense on a straight line basis over the respective vesting periods. The Company recorded salaries and employee benefits expense on our consolidated statements of income in connection with the Plan of $282,000 and $72,000 for the years ended December 31, 2021 and 2020 related to the restricted stock awards. As of December 31, 2021, there was $657,000 of unrecognized compensation cost related to the stock awards. As of December 31, 2021 and 2020, 210,000 restricted shares awarded were outstanding and the weighted average contractual life was 2.46 years and 3.46 years, respectively. The weighted average grant date fair value of the awards as of December 31, 2021 was $4.81. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 12. Commitments and Contingencies The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the accompanying balance sheets. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The following table summarizes loan commitments: (In thousands) December 31, 2021 December 31, 2020 Undisbursed loan commitments $ 33,704 $ 19,880 Standby letters of credit 282 162 $ 33,986 $ 20,042 The Company is involved in various regulatory inspections, inquiries, investigations and proceedings, and litigation matters that arise from time to time in the ordinary course of business. The process of resolving matters through litigation or other means is inherently uncertain, and it is possible that an unfavorable resolution of these matters, will adversely affect the Company, its results of operations, financial condition and cash flows. The Company’s regular practice is to expense legal fees as services are rendered in connection with legal matters, and to accrue for liabilities when payment is probable. The Company, through its wholly owned subsidiary Sanders Morris, has uncommitted financing arrangements with clearing brokers that finance its customer accounts, certain broker-dealer balances, and firm trading positions. Although these customer accounts and broker-dealer balances are not reflected on the consolidated balance sheets for financial reporting purposes, Sanders Morris has generally agreed to indemnify these clearing brokers for losses they may sustain in connection with the accounts, and therefore, retains risk on these accounts. Sanders Morris is required to maintain certain cash or securities on deposit with its clearing brokers. Deposits with clearing organizations were $250,000 as of December 31, 2021 and 2020. Employment Agreements The Company is party to amended and restated employment agreements with Patrick Howard, President and Chief Operating Officer of the Company, and Ken Bramlage, Executive Vice President and Chief Financial Officer of the Company. In addition, the Company entered into an employment agreement with A. Haag Sherman, Chief Executive Officer of the Company, in connection with the Company’s merger with Tectonic Holdings and its initial public offering. Messrs. Sherman and Howard’s employment agreements have a four year term and Mr. Bramlage’s employment agreement has a three year term. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 13. Related Parties Advisors service agreements: CWA Fee Allocation Agreement: Certain officers, directors and their affiliated companies had depository accounts with the Bank as of December 31, 2021 and 2020, totaling approximately $9.2 million and $5.6 million, respectively. None of those deposit accounts have terms more favorable than those available to any other depositor. As of December 31, 2021, there were no loans outstanding to directors of the Bank or their affiliated companies. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 14. Regulatory Matters The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s and, accordingly, the Company’s business, results of operations and financial condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under GAAP, regulatory reporting requirements, and regulatory capital standards. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. Quantitative measures established by regulatory capital standards to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and tier 1 capital to risk-weighted assets, common equity Tier 1 (“CET1”) capital to total risk-weighted assets, and of tier 1 capital to average assets. To be categorized as “well-capitalized” under the prompt corrective action framework, the Bank must maintain (i) a Total risk-based capital ratio of 10%; (ii) a Tier 1 risk-based capital ratio of 8%; (iii) a Tier 1 leverage ratio of 5%; and (iv) a CET1 risk-based capital ratio of 6.5%. In addition, the Basel III regulatory capital reforms (“Basel III”) implemented a capital conservation buffer of 2.5%. The Basel III minimum capital ratio requirements as applicable to the Company and the Bank are summarized in the table below. BASEL III Minimum for Capital Adequacy Requirements BASEL III Additional Capital Conservation Buffer BASEL III Ratio with Capital Conservation Buffer Total Risk Based Capital (total capital to risk weighted assets) 8.0 % 2.5 % 10.5 % Tier 1 Risk Based Capital (tier 1 to risk weighted assets) 6.0 % 2.5 % 8.5 % Common Equity Tier 1 Risk Based ( CET1 to risk weighted assets) 4.5 % 2.5 % 7.0 % Tier 1 Leverage Ratio (tier 1 to average assets) 4.0 % - % 4.0 % Accordingly, a financial institution may be considered “well capitalized” under the prompt corrective action framework, but not satisfy the Basel III capital ratios. As of December 31, 2021, the Bank’s regulatory capital ratios are in excess of the capital conservation buffer and the levels established for “well capitalized” institutions under the Basel III Rules. The regulatory capital ratios of the Company and the Bank are as follows: Actual Minimum Capital Required - Basel III Required to be Considered Well Capitalized (In thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 66,946 18.55 % $ 37,894 10.50 % $ 36,089 10.00 % T Bank, N.A. 67,454 18.87 37,542 10.50 35,754 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 62,794 17.40 30,676 8.50 28,871 8.00 T Bank, N.A. 63,302 17.70 30,391 8.50 28,604 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 45,544 12.62 25,263 7.00 23,458 6.50 T Bank, N.A. 63,302 17.70 25,028 7.00 23,240 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 62,794 11.82 21,245 4.00 26,557 5.00 T Bank, N.A. 63,302 12.06 21,002 4.00 26,252 5.00 As of December 31, 2020 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 50,987 18.22 % $ 29,379 10.50 % $ 27,980 10.00 % T Bank, N.A. 50,012 18.25 28,782 10.50 27,411 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 48,046 17.17 23,783 8.50 22,384 8.00 T Bank, N.A. 47,071 17.17 23,299 8.50 21,929 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 30,796 11.01 19,586 7.00 18,187 6.50 T Bank, N.A. 47,071 17.17 19,188 7.00 17,817 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 48,046 11.66 16,480 4.00 20,601 5.00 T Bank, N.A. 47,071 11.58 16,257 4.00 20,322 5.00 Dividend Restrictions In addition to the regulatory requirements of the federal banking agencies, Sanders Morris and Tectonic Advisors are subject to the regulatory framework applicable to registered investment advisors under the SEC’s Division of Investment Management, and additionally, Sanders Morris is regulated by FINRA, which, among other requirements, imposes minimums on its net regulatory capital. |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 15. Operating Segments The Company’s reportable segments consist of Banking, Other Financial Services, and HoldCo operations. The Banking segment consists of operations relative to the Company’s full service banking operations, including providing depository and lending services to individual and business customers, and other related banking services, as well as operations of the Bank’s Integra factoring division. The Other Financial Services segment includes managed and directed brokerage, investment advisory services, including related trust company operations, third party administration, and insurance brokerage services to both individuals and businesses. The HoldCo operations include the operations and subordinated debt held at the Bank’s immediate parent, as well as the activities of the financial holding company which serves as T Bancshares’s parent. The tables below present the financial information for each segment that is specifically identifiable, or based on allocations using internal methods, for the years ended December 31, 2021 and 2020: (In thousands) Banking Other Financial Services HoldCo Consolidated Year Ended December 31, 2021 Income Statement Total interest income $ 29,384 $ - $ - $ 29,384 Total interest expense 2,736 - 891 3,627 Provision for loan losses 2,214 - - 2,214 Net interest income (loss) after provision for loan losses 24,434 - (891 ) 23,543 Non-interest income 991 35,428 205 36,624 Depreciation and amortization expense 379 144 - 523 All other non-interest expense 11,441 24,737 1,629 37,807 Income (loss) before income tax $ 13,605 $ 10,547 $ (2,315 ) $ 21,837 Goodwill and other intangibles $ 19,867 $ 2,350 $ - $ 22,217 Total assets $ 573,726 $ 10,833 $ 452 $ 585,011 (In thousands) Banking Other Financial Services HoldCo Consolidated Year Ended December 31, 2020 Income Statement Total interest income $ 20,878 $ - $ - $ 20,878 Total interest expense 4,394 - 875 5,269 Provision for loan losses 1,709 - - 1,709 Net-interest income (loss) after provision for loan losses 14,775 - (875 ) 13,900 Non-interest income 1,492 32,120 22 33,721 Depreciation and amortization expense 370 244 - 614 All other non-interest expense 7,865 24,068 1,065 33,085 Income before income tax $ 8,032 $ 7,808 $ (1,918 ) $ 13,922 Goodwill and other intangibles $ 9,358 $ 2,350 $ - $ 11,708 Total assets $ 499,580 $ 13,571 $ 275 $ 513,426 |
Fair Value of Financials Instru
Fair Value of Financials Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 16. Fair Value of Financials Instruments The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. FASB ASC Topic 820, Fair Value Measurement, ● Level 1 Inputs ● Level 2 Inputs ● Level 3 Inputs Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. The Company has no securities in the Level 1 or Level 3 inputs. The following table summarizes securities available for sale measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: (In thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value As of December 31, 2021 Securities available for sale: U.S. government agencies $ - $ 15,402 $ - $ 15,402 Mortgage-backed securities - 1,754 - 1,754 As of December 31, 2020 Securities available for sale: U.S. government agencies $ - $ 14,949 $ - $ 14,949 Mortgage-backed securities - 2,447 - 2,447 Market valuations of our investment securities which are classified as level 2 are provided by an independent third party. The fair values are determined by using several sources for valuing fixed income securities. Their techniques include pricing models that vary based on the type of asset being valued and incorporate available trade, bid and other market information. In accordance with the fair value hierarchy, the market valuation sources include observable market inputs and are therefore considered Level 2 inputs for purposes of determining the fair values. The Company considers transfers between the levels of the hierarchy to be recognized at the end of related reporting periods. During the year ended December 31, 2021, no assets for which fair value is measured on a recurring basis transferred between any levels of the hierarchy. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis during the reported periods include impaired loans and loans held for sale. Impaired loans. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral-dependent impaired loans primarily relate to the specialized discounting criteria applied to the borrower’s reported amount of collateral. The amount of the collateral discount depends upon the condition and marketability of the collateral, as well as other factors which may affect the collectability of the loan. As the Company’s primary objective in the event of default would be to liquidate the collateral to settle the outstanding balance of the loan, collateral that is less marketable would receive a larger discount. During the years ended December 31, 2021 and 2020, there were no discounts for collateral-dependent impaired loans. The valuation of our not readily marketable investment securities which are classified as Level 3 are based on the Company’s own assumptions and inputs that are both significant to the fair value measurement, and are unobservable. Our assessment of the significance of a particular input to the Level 3 fair value measurements in their entirety requires judgment and considers factors specific to the assets. It is reasonably possible that a change in the estimated fair value for instruments measured using Level 3 inputs could occur in the future. Loans held for sale. Non-financial assets measured at fair value on a non-recurring basis during the reported periods include other real estate owned which, upon initial recognition, was re-measured and reported at fair value through a charge-off to the allowance for loan losses. Additionally, foreclosed assets which, subsequent to their initial recognition, are re-measured at fair value through a write-down included in other non-interest expense. Regulatory guidelines require the Company to reevaluate the fair value of foreclosed assets on at least an annual basis. The fair value of foreclosed assets, upon initial recognition and impairment, are re-measured using Level 2 inputs based on observable market data. Estimated fair value of other real estate is based on appraisals. Appraisers are selected from the list of approved appraisers maintained by management. At December 31, 2021, foreclosed assets totaled $1.1 million consisting of two loans that were foreclosed during 2021 and were recorded at fair value. At December 31, 2020, there were no foreclosed assets. There were no foreclosed assets re-measured during the years ended December 31, 2021 and 2020. The methods and assumptions used to estimate fair value of financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis are described as follows: Carrying amount is the estimated fair value for cash and cash equivalents, restricted securities, accrued interest receivable and accrued interest payable. The estimated fair value of demand and savings deposits is the carrying amount since rates are regularly adjusted to market rates and amounts are payable on demand. For borrowed funds and variable rate loans or deposits that re-price frequently and fully, the estimated fair value is the carrying amount. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent re-pricing, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. For loans held for sale, the estimated fair value is based on market indications for similar assets in the active market. The estimated fair value of other financial instruments and off-balance-sheet loan commitments approximate cost and are not considered significant to this presentation. The Company adds a servicing asset when loans are sold and the servicing is retained, and uses the amortization method for the treatment of the servicing asset. The servicing asset is carried at lower of cost or fair value. Loan servicing assets do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using a discounted cash flow model having significant inputs of discount rate, prepayment speed and default rate. Due to the nature of the valuation inputs, servicing rights are classified within Level 3 of the hierarchy. During the year ended December 31, 2021, the Company added a servicing asset of $19,000 in connection with the sale of $1.1 million in loans. During the year ended December 31, 2020, the Company added a servicing asset of $152,000 in connection with the sale of $9.8 million in loans. For the years ended December 31, 2021 and 2020, the Company amortized $326,000 and 460,000, respectively, using the amortization method for the treatment of servicing loans. The Company recorded no allowance for the year ended December 31, 2021. The Company recorded an allowance credit provision for the year ended December 31, 2020 totaling $199,000. FASB ASC Topic 825, Financial Instruments Securities held to maturity Loans. Deposits. Borrowed Funds. Loan Commitments, Standby and Commercial Letters of Credit. Carrying amounts and estimated fair values of other financial instruments by level of valuation input were as follows: December 31, 2021 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 45,992 $ 45,992 Level 2 inputs: Securities available for sale 17,156 17,156 Securities, restricted 2,432 2,432 Loans held for sale 33,762 37,549 Accrued interest receivable 2,268 3,787 Level 3 inputs: Securities held to maturity 19,673 19,673 Securities not readily marketable 100 100 Loans, net 424,595 430,810 Servicing asset 503 503 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 88,876 88,876 Level 2 inputs: Interest bearing deposits 355,293 359,606 Borrowed funds 46,521 46,521 Accrued interest payable 561 561 December 31, 2020 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 46,868 $ 46,868 Level 2 inputs: Securities available for sale 17,396 17,396 Securities, restricted 2,431 2,431 Loans held for sale 14,864 16,462 Accrued interest receivable 2,440 2,440 Level 3 inputs: Securities held to maturity 5,776 5,776 Securities not readily marketable 100 100 Loans, net 397,601 389,143 Servicing asset 809 809 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 57,112 57,112 Level 2 inputs: Interest bearing deposits 290,903 292,174 Borrowed funds 95,690 95,690 Accrued interest payable 596 596 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Note 17. Recent Accounting Pronouncements ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. ASU 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes. ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs. |
Integra Acquisition
Integra Acquisition | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 18. Integra Acquisition On July 1, 2021, we, through our wholly-owned subsidiary T Bancshares, acquired Integra through the merger of Integra with and into T Bancshares, with T Bancshares surviving the merger. Integra’s activity will be reported within our Banking segment. Integra is a factoring company that provides financing to smaller transportation companies across the United States principally by purchasing their accounts receivable at a discount and then collecting such receivables at face value. We believe that the addition of this small business lending vertical will provide the Bank with additional breadth in its lending platform and enable the Bank to continue to prudently grow its balance sheet and generate relatively attractive returns on its assets. Pursuant to the terms of and subject to the conditions set forth in the Agreement and Plan of Merger by and between the Company and Integra (the “Merger Agreement”), the transaction provided for the payment to the members of Integra of (a) an amount of cash equal to (i) approximately $2.5 million, subject to certain adjustments described in the Merger Agreement which totaled $726,721, and (b) 453,203 shares of the Company’s common stock. In addition, the Company incurred $115,726 of expenses related to the acquisition of Integra, which is reported in non-interest expense on our consolidated statements of income. A summary of the fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill, which represents the expected synergies from the Integra merger, and is not deductible for tax purposes, is as follows: (In thousands) Assets acquired: Factored receivables $ 33,442 Other assets 270 Premises and equipment 24 Loans receivable 1,103 34,839 Liabilities assumed: Deposits 2,535 Other liabilities 253 Borrowings 28,927 31,715 Fair value of net assets acquired 3,124 Consideration: Cash paid 3,185 Common stock 10,650 Total consideration 13,835 Goodwill $ 10,711 The contractual value of the factored receivables acquired was $34.3 million. The amount above represents the contractual value of the receivables less the purchased deferred discount of $397,000 and the fair value adjustment of $492,000. The value for the common stock was based on an earnings based multiple plus a control premium. Supplemental Pro Forma Information (unaudited) The following table presents financial information regarding the former Integra operations for the years ended December 31, 2020 and the six months ended June 30, 2021. In addition, the tables present unaudited condensed pro forma financial information assuming that the Integra acquisition was completed as of January 1, 2020. The financial information for the Company for the year ended December 31, 2021 includes Integra operations from July 1, 2021 through December 31, 2021. Integra was a subchapter S corporation and as such, income tax on its earnings was paid by its shareholders. The results shown below for the period prior to the acquisition include an estimate for income tax at the Company’s statutory rate. The tables have been prepared for comparative purposes only and are not necessarily indicative of the actual results that would have been obtained had the acquisition occurred on January 1, 2020, nor is it indicative of future results. (In thousands) Actual Integra results of operations for the Period January 1, 2021 through June 30, 2021 Actual for the Year Ended December 31, 2021 Pro Forma for the Year Ended December 31, 2021 Net interest income $ 2,373 $ 23,543 $ 25,916 Noninterest income 248 36,624 36,872 Noninterest expense 1,377 38,330 39,707 Net income after income taxes 983 17,034 18,017 (In thousands) Actual Integra results of operations for the Year Ended December 31, 2020 Actual for the Year Ended December 31, 2020 Pro Forma for the Year Ended December 31, 2020 Net interest income $ 2,706 $ 13,900 $ 16,606 Noninterest income 401 33,721 34,122 Noninterest expense 1,652 33,699 35,351 Net income after income taxes 1,149 10,925 12,074 |
Parent Company Condensed Financ
Parent Company Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Note 19. Parent Company Condensed Financial Statements TECTONIC FINANCIAL, INC. CONDENSED BALANCE SHEETS (In thousands) December 31, 2021 December 31, 2020 ASSETS Cash and due from banks $ 3,464 $ 221 Securities, not readily marketable 100 100 Investment in subsidiaries 81,907 57,646 Other assets 268 2,175 Total assets $ 85,739 $ 60,142 LIABILITIES AND SHAREHOLDERS EQUITY Other liabilities $ 552 $ 129 Shareholders’ equity 85,187 60,013 Total liabilities and shareholders’ equity $ 85,739 $ 60,142 TECTONIC FINANCIAL, INC. CONDENSED STATEMENTS OF INCOME YEARS ENDED DECEMBER 31, (In thousands) 2021 2020 Income from subsidiaries $ 18,158 $ 11,710 Other income 736 527 Total income 18,894 12,237 Non-interest expense: Salaries and employee benefits 946 682 Professional and administrative 297 267 Other 826 527 Total non-interest expense 2,069 1,476 Income before income taxes 16,825 10,761 Income tax benefit 209 164 Net Income $ 17,034 $ 10,925 TECTONIC FINANCIAL, INC. CONDENSED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, (In thousands) 2021 2020 Net Income $ 17,034 $ 10,925 Other comprehensive (loss) income: Change in unrealized (loss) gain on investment securities available for sale (502 ) 19 Tax effect (106 ) 5 Other comprehensive (loss) income (396 ) 14 Comprehensive income $ 16,638 $ 10,939 TECTONIC FINANCIAL, INC. CONDENSED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, (In thousands) 2021 2020 Cash Flows from Operating Activities Net income $ 17,034 $ 10,925 Adjustments to reconcile net income to net cash used in operating activities: Equity in income of subsidiaries (18,158 ) (11,710 ) Stock based compensation 330 151 Net change in other assets 1,907 (1,703 ) Net change in other liabilities 422 - Net cash provided by (used in) operating activities 1,535 (2,337 ) Cash Flows from Investing Activities Contributions to subsidiaries (9,310 ) - Distributions from subsidiaries 13,461 2,571 Net cash provided by investing activities 4,151 2,571 Cash Flows from Financing Activities Proceeds from issuance of common shares 400 - Dividends paid on Series B Preferred Shares (1,552 ) (1,552 ) Dividends on common shares (1,291 ) - Net cash used in financing activities (2,443 ) (1,552 ) Net change in cash and cash equivalents 3,243 (1,318 ) Cash and cash equivalents at beginning of period 221 1,539 Cash and cash equivalents at end of period $ 3,464 $ 221 Supplemental disclosures of cash flow information Cash paid during the year for: Income taxes $ 5,427 $ 700 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Organization and Nature of Operations Tectonic Financial, Inc. (the “Company,” “we,” “us,” or “our”) is a financial holding company that offers, through its subsidiaries, banking and other financial services including trust, investment advisory, securities brokerage, factoring, third-party administration, qualified plan recordkeeping and insurance services to individuals, small businesses and institutions across the United States. We operate through four main direct and indirect subsidiaries: (i) T Bancshares, Inc. (“T Bancshares”), which was incorporated under the laws of the State of Texas on December 23, 2002 to serve as the bank holding company for T Bank, N.A., a national association (the “Bank”), (ii) Sanders Morris Harris LLC (“Sanders Morris”), a registered broker-dealer with the Financial Industry Regulatory Authority (“FINRA”), and registered investment advisor with the Securities and Exchange Commission, (“SEC”), (iii) Tectonic Advisors, LLC (“Tectonic Advisors”) a registered investment advisor registered with the SEC focused generally on managing money for relatively large, affiliated institutions as well as for their clients, which include individuals, businesses, and qualified plans, and (iv) HWG Insurance Agency LLC (“HWG”), an insurance agency registered with the Texas Department of Insurance (“TDI”). We are headquartered in Dallas, Texas. The Bank operates through a main office located at 16200 Dallas Parkway, Dallas, Texas. Our other subsidiaries operate from offices in Houston, Dallas, and Plano, Texas. Our Houston office is located at 600 Travis Street, 59th Floor, Houston, Texas, and includes the home offices of Sanders Morris and HWG, as well as Tectonic Advisors’ family office services team. Our Dallas office, which is a branch office of Sanders Morris, is at 5950 Sherry Lane, Suite 470, Dallas, Texas. Our main office for Tectonic Advisors is in Plano at 6900 Dallas Parkway, Suite 625, Plano, Texas, and also includes a branch office of HWG. The Bank offers a broad range of commercial and consumer banking and trust services primarily to small- to medium-sized businesses and their employees, and other institutions. The Nolan Company (“Nolan”), operating from its office in Overland Park, Kansas as a division within the bank, offers third party administration (“TPA”) services, and Integra Funding Solutions, LLC (“Integra”), operating from its Fort Worth, Texas office as a division within the Bank, offers factoring services. The Bank’s technological capabilities, including worldwide free ATM withdrawals, sophisticated on-line banking capabilities, electronic funds transfer capabilities, and economical remote deposit solutions, allow most customers to be served regardless of their geographic location. The Bank serves its local geographic market which includes Dallas, Tarrant, Denton, Collin and Rockwall counties which encompass an area commonly referred to as the Dallas/Fort Worth Metroplex. The Bank also serves the dental and other health professional industries through a centralized loan and deposit platform that operates out of its main office in Dallas, Texas. In addition, the Bank serves the small business community by offering loans guaranteed by the Small Business Administration (“SBA”) and the U.S. Department of Agriculture (“USDA”). The Bank offers a wide range of deposit services including demand deposits, regular savings accounts, money market accounts, individual retirement accounts, and certificates of deposit with fixed rates and a range of maturity options. Lending services include commercial loans to small- to medium-sized businesses and professional concerns as well as consumers. The Bank also offers wealth management and trust services. The Bank’s traditional fiduciary services clients primarily consist of clients of Cain Watters & Associates L.L.C. (“Cain Watters”). The Bank, Cain Watters and Tectonic Advisors entered into an advisory services agreement related to the trust operations in April 2006, which has been amended from time to time, most recently in July 2016. See Note 13, Related Parties Basis of Presentation |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to significant credit risk on cash and cash equivalents. |
Trust Assets, Policy [Policy Text Block] | Trust Assets Property held for customers in a fiduciary capacity, other than trust cash on deposit at the Bank, is not included in the accompanying consolidated financial statements since such items are not assets of the Company. |
Marketable Securities, Policy [Policy Text Block] | Securities Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them until maturity. Securities to be held for indefinite periods of time are classified as available for sale and carried at fair value, with the unrealized holding gains and losses reported as a component of other comprehensive income, net of tax. Securities held for resale are classified as trading and are carried at fair value, with changes in unrealized holding gains and losses included in income. Management determines the appropriate classification of securities at the time of purchase. Securities with limited marketability, such as stock in the FRB and the FHLB are carried at cost. The Company has investments in stock of the FRB and the FHLB as is required for participation in the services offered. These investments are classified as restricted and are recorded at cost. Securities, not readily marketable are carried at cost. Interest income includes amortization of purchase premiums and accretion of purchase discounts. Premiums and discounts on securities are amortized on the interest method with a constant effective yield without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable securities are amortized to their earliest call date. Gains and losses are recorded on the trade date and determined using the specific identification method. Declines in the fair value of available for sale securities below their cost that are deemed to be other-than-temporary-impairment (“OTTI”) are reflected in earnings as realized losses to the extent the impairment related to credit losses. The amount of impairment related to other factors is recognized in other comprehensive income. In estimating OTTI losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery of amortized cost. At December 31, 2021 and 2020, no securities were determined to be other-than-temporarily impaired. |
Receivable [Policy Text Block] | Factored Receivables Integra, operating as a division of the Bank, purchases invoices on completed work from its factoring clients. Integra also makes, from time to time, short-term advances to its clients on transportation contracts for upcoming loads or, to a much lesser extent, makes over-advances on the existing purchased invoices. Funds are advanced to the client based on the applicable advance rate, less fees, as agreed to in each individual factoring agreement. The gross amount (face value) of the invoices purchased are recorded by Integra as factored receivables, and the unadvanced portions of the invoices purchased, less discount and origination fees, are considered deferred client reserves and recorded as other liabilities in the Company’s consolidated balance sheets. The deferred client reserves are held to settle any payment disputes or collection short payments, and become reserves due to client when the receivables are collected. Reserves due to client may be used to pay clients’ obligations to various third parties as directed by the client, are periodically withdrawn by clients, and are reported as deposits in the Company’s consolidated balance sheets. Unearned factoring fees and unearned net origination fees are deferred revenue and recognized as interest income in the Company’s consolidated income statements over the weighted average collection period for the entire portfolio of factored receivables. Subsequent factoring fees are recognized in interest income as incurred by the client and deducted from the clients’ reserve balances. Other factoring-related fees, which include ACH and wire transfer fees, fuel card funding fees, carrier payment fees, fuel advance fees, and other similar fees, are recognized as incurred and are reported by the Company as non-interest income. |
Financing Receivable, Held-for-sale [Policy Text Block] | Loans Held for Sale Loans which are originated or purchased and are intended for sale in the secondary market are carried at the lower of cost or estimated fair value determined on an aggregate basis. Valuation adjustments, if any, are recognized through a valuation allowance by charges to non-interest income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in non-interest income upon sale of the loan. Loans held for sale are comprised of the guaranteed portion of SBA and USDA loans. The Company did not incur a lower of cost or market valuation provision in the years ended December 31, 2021 and 2020. The Company elected to reclassify $42.8 million and $26.4 million of the SBA 7(a) loans held for sale to loans held for investment during the year ended December 31, 2021 and 2020, respectively. |
Financing Receivable [Policy Text Block] | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, unearned discount, deferred loan fees, and allowance for loan losses. Interest income is accrued on the unpaid principal balance. Discount on acquired loans and net loan origination fees are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on commercial business and commercial real estate loans is discontinued when the loan becomes 90 days delinquent unless the credit is well secured and in process of collection. Unsecured consumer loans are generally charged off when the loan becomes 90 days past due. Consumer loans secured by collateral other than real estate are charged off after a review of all factors affecting the ability to collect on the loan, including the borrower’s history, overall financial condition, resources, guarantor support, and the realizable value of any collateral. However, any consumer loan past due 180 days is charged off. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on non-accrual are reversed against interest income. Interest received on such loans is accounted for on a cash-basis or cost-recovery method, until qualifying for return to accrual basis. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses, increased by the provision for loan losses and decreased by charge-offs less recoveries. Management estimates the allowance balance required by considering the collectability of loans based on historical experience and the borrower’s ability to repay, the nature and volume of the portfolio, information about specific borrower situations and the estimated value of any underlying collateral, economic conditions and other factors. The allowance consists of general and specific reserves. The specific component relates to loans that are individually evaluated and determined to be impaired. This amount of allowance is often based on variables affecting valuation, appraisals of collateral, evaluations of performance and status, and the amounts and timing of future cash flows expected to be received. The general component relates to the entire group of loans that are evaluated in the aggregate based primarily on industry historical loss experience adjusted for current economic factors. To the extent actual loan losses differ materially from management’s estimate of these subjective factors, loan growth/run-off accelerates, or the mix of loan types changes, the level of the provision for loan loss, and related allowance can, and will, fluctuate. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include, among others, payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loan impairment on loans is generally based upon the present value of the expected future cash flows discounted at the loan’s initial effective interest rate, unless the loans are collateral dependent, in which case loan impairment is based upon the fair value of collateral less estimated selling costs. |
Property, Plant and Equipment, Policy [Policy Text Block] | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 39 years. Furniture and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. Land improvements are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. Leasehold improvements are depreciated using the straight-line method over the lease term or estimated life, whichever is shorter. Repair and maintenance costs are expensed as incurred. We lease certain office facilities and office equipment under operating leases. We also own certain office facilities which we lease to outside parties under operating lessor leases. Under the lease standards, for operating leases other than those considered to be short-term, we recognize lease right-of-use assets and related lease liabilities. Such amounts are reported as components of other assets and other liabilities, respectively, on our accompanying consolidated balance sheet. We do not recognize short-term operating leases on our balance sheet. A short-term operating lease has an original term of 12 months or less and does not have a purchase option that is likely to be exercised. |
Financing Receivable, Held-for-investment, Foreclosed Asset [Policy Text Block] | Foreclosed Assets |
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | Servicing Rights The guaranteed portion of certain SBA and USDA loans can be sold into the secondary market. Servicing rights are recognized as separate assets when loans are sold with servicing retained. Servicing rights are amortized in proportion to, and over the period of, estimated future net servicing income. The Company uses industry prepayment statistics in estimating the expected life of the loans. Management evaluates its servicing rights for impairment quarterly. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Fair value is determined using discounted future cash flows calculated on a loan-by-loan basis and aggregated by predominant risk characteristics. The initial servicing rights and resulting gain on sale are calculated based on the difference between the actual par and bids on an individual loan basis. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets Intangible assets consist of goodwill and core deposit intangibles. Goodwill represents the excess purchase price over the fair value of net assets acquired in business acquisitions. The core deposit intangible represents the excess intangible value of acquired deposit customer relationships as determined by valuation specialists. The core deposit intangibles are being amortized over 58 to 100 months on a straight-line basis. Goodwill is not amortized but rather is evaluated for impairment on at least an annual basis. The Company performed its annual impairment test of goodwill and core deposit intangibles during 2021 and 2020, as required by FASB ASC 350, Intangibles Goodwill and Other |
Share-based Payment Arrangement [Policy Text Block] | Stock Based Compensation The Company has a share-based employee compensation plan, which is described more fully in Note 11. The Company accounts for it stock-based compensation in accordance with applicable accounting guidance for share-based payments. This guidance requires all share-based payments to be recognized on the consolidated statements of income based on their fair values. Compensation costs for awards with graded vesting are recognized on a straight-line basis over the vesting period. |
Advertising Cost [Policy Text Block] | Advertising Costs Advertising costs are expensed as incurred. Advertising costs totaled $370,000 and $40,000 for the years ended December 31, 2021 and 2020, respectively. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes utilizing the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company accounts for uncertainties in income taxes in accordance with current accounting guidance which prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of cumulative benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. No uncertain tax positions have been recognized. The Company files a consolidated income tax return with our subsidiaries. Federal income tax expense or benefit has been allocated to subsidiaries on a separate return basis. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income |
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Financings, Policy [Policy Text Block] | Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Transfer of financial assets are comprised of the guaranteed portion of SBA and USDA loans which have been sold. |
Commitments and Contingencies, Policy [Policy Text Block] | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments |
Revenue [Policy Text Block] | Revenue Recognition The Company recognizes revenue in accordance with FASB ASC 606, Revenue from Contracts with Customers ( Topic 606 ) The Company derives a portion of its revenue from loan and investment income which are specifically excluded from the scope of this standard. Of the Company’s remaining sources of income, substantially all sources of banking revenue are recognized either by transaction (ATM, interchange, wire transfer, etc.) or when the Company charges a customer for a service that has already been rendered (monthly service charges, account fees, monthly trust management fees, monthly premise rental income, etc.). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Other non-interest income primarily includes items such as gains on the sale of loans held for sale and servicing fees, none of which are subject to the requirements of Topic 606. Revenue from contracts with customers includes fees from asset management services and commission income and fees and commissions from investment banking services. Under Topic 606, the recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company’s progress under the related agreement; and whether constraints on variable consideration should be applied due to uncertain future events. |
Investment Banking Fees, Policy [Policy Text Block] | Advisory Fees Investment advisory fees Performance fees: Other advisory fees |
Commissions, Policy [Policy Text Block] | Commissions Brokerage commissions : Syndication and private placement commissions |
New Accounting Pronouncements, Policy [Policy Text Block] | Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation but have no effect on the reported results of operations. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods: Years ended December 31, (In thousands, except per share data) 2021 2020 Net income available to common shareholders $ 15,482 $ 9,373 Average shares outstanding 6,804 6,569 Effect of common stock-based compensation 218 15 Average diluted shares outstanding 7,022 6,584 Basic earnings per share $ 2.28 $ 1.43 Diluted earnings per share $ 2.21 $ 1.42 As of December 31, 2021, options to purchase 190,000 shares of common stock, with a weighted average exercise price of $5.37, were included in the computation of diluted net earnings per share. In addition, as of December 31, 2021, 210,000 shares of restricted stock grants with a grant date fair value of $4.81 per share which vest from 2023 through 2025 were included in the diluted earnings per share calculation. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods: Years ended December 31, (In thousands, except per share data) 2021 2020 Net income available to common shareholders $ 15,482 $ 9,373 Average shares outstanding 6,804 6,569 Effect of common stock-based compensation 218 15 Average diluted shares outstanding 7,022 6,584 Basic earnings per share $ 2.28 $ 1.43 Diluted earnings per share $ 2.21 $ 1.42 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | A summary of amortized cost and cost and fair value of securities is presented below. December 31, 2021 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 15,847 $ 4 $ 449 $ 15,402 Mortgage-backed securities 1,724 30 - 1,754 Total securities available for sale $ 17,571 $ 34 $ 449 $ 17,156 Securities held to maturity Property assessed clean energy $ 2,731 $ - $ - $ 2,731 Public Improvement District & TIRZ 16,942 - - 16,942 Total securities held to maturity $ 19,673 $ - $ - $ 19,673 Securities, restricted: Other $ 2,432 $ - $ - $ 2,432 Securities not readily marketable $ 100 $ - $ - $ 100 December 31, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 14,936 $ 38 $ 25 $ 14,949 Mortgage-backed securities 2,373 74 - 2,447 Total securities available for sale $ 17,309 $ 112 $ 25 $ 17,396 Securities held to maturity Property assessed clean energy $ 5,776 $ - $ - $ 5,776 Securities, restricted: Other $ 2,431 $ - $ - $ 2,431 Securities not readily marketable $ 100 $ - $ - $ 100 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value [Table Text Block] | The table below indicates the length of time individual investment securities have been in a continuous loss position as of December 31, 2021: Less than 12 months 12 months or longer Total (In thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ 9,438 $ 256 $ 5,803 $ 193 $ 15,241 $ 449 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and estimated fair value of securities at December 31, 2021 are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities are shown separately since they are not due at a single maturity date. Available for Sale Held to Maturity (In thousands) Amortized Cost Estimated Amortized Cost Estimated Fair Value Due in one year or less $ 21 $ 21 $ - $ - Due after one year through five years 1,995 1,927 2,707 2,707 Due after five years through ten years 10,157 9,916 - - Due after ten years 3,674 3,538 16,966 16,966 Mortgage-backed securities 1,724 1,754 - - Total $ 17,571 $ 17,156 $ 19,673 $ 19,673 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Major classifications of loans held for investment are as follows: (In thousands) December 31, 2021 December 31, 2020 Commercial and industrial $ 83,348 $ 79,864 Consumer installment 1,099 10,259 Real estate – residential 5,452 4,319 Real estate – commercial 62,966 44,484 Real estate – construction and land 2,585 8,396 SBA: SBA 7(a) guaranteed 145,983 164,687 SBA 7(a) unguaranteed 52,524 52,179 SBA 504 35,348 35,553 USDA 806 801 Factored receivables 38,636 - Gross loans 428,747 400,542 Less: Allowance for loan losses 4,152 2,941 Net loans $ 424,595 $ 397,601 |
Financing Receivable, Nonaccrual [Table Text Block] | Non-accrual loans, segregated by class of loans, were as follows: (In thousands) December 31, 2021 December 31, 2020 Non-accrual loans: Commercial and industrial $ - $ 158 Real estate – commercial 149 - SBA guaranteed 2,039 1,118 SBA unguaranteed - 517 Total $ 2,188 $ 1,793 |
Impaired Financing Receivables [Table Text Block] | The Company’s impaired loans and related allowance is summarized in the following table: Unpaid Recorded Recorded Contractual Investment Investment Total Average Interest Principal With No With Recorded Related Recorded Income (In thousands) Balance Allowance Allowance Investment Allowance Investment Recognized December 31, 2021 Year Ended Commercial and industrial $ - $ - $ - $ - $ - $ 73 $ 4 SBA 3,658 3,071 - 3,071 - 6,333 21 Total $ 3,658 $ 3,071 $ - $ 3,071 $ - $ 6,406 $ 25 December 31, 2020 Year Ended Commercial and industrial $ - $ - $ - $ - $ - $ 10 $ - Real estate – construction and land - - - - - 313 - SBA 6,649 2,976 - 2,976 - 3,206 61 Total $ 6,649 $ 2,976 $ - $ 2,976 $ - $ 3,529 $ 61 |
Financing Receivable, Past Due [Table Text Block] | Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The Company’s past due loans are as follows: Total 90 90 Days Days Past 30-89 Days or More Total Total Total Due Still (In thousands) Past Due Past Due Past Due Current Loans Accruing December 31, 2021 Commercial and industrial $ 4 $ - $ 4 $ 83,344 $ 83,348 $ - Consumer installment - - - 1,099 1,099 - Real estate – residential - - - 5,452 5,452 - Real estate – commercial 219 - 219 62,747 62,966 - Real estate – construction and land - - - 2,585 2,585 - SBA 1,762 - 1,762 232,093 233,855 - USDA - - - 806 806 - Factored receivables 1,743 400 2,143 36,493 38,636 400 Total $ 3,728 $ 400 $ 4,128 $ 424,619 $ 428,747 $ 400 December 31, 2020 Commercial and industrial $ - $ - $ - $ 79,864 $ 79,864 $ - Consumer installment - - - 10,259 10,259 - Real estate – residential - - - 4,319 4,319 - Real estate – commercial 121 158 279 44,205 44,484 - Real estate – construction and land - - - 8,396 8,396 - SBA - 1,635 1,635 250,784 252,419 - USDA - - - 801 801 - Total $ 121 $ 1,793 $ 1,914 $ 398,628 $ 400,542 $ - |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table summarizes the Company’s internal ratings of its loans as of the dates indicated: Pass- Special (In thousands) Pass Watch Mention Substandard Doubtful Total December 31, 2021 Commercial and industrial $ 82,105 $ 1,243 $ - $ - $ - $ 83,348 Consumer installment 1,099 - - - - 1,099 Real estate – residential 5,242 - - 210 - 5,452 Real estate – commercial 62,817 - - 149 - 62,966 Real estate – construction and land 2,585 - - - - 2,585 SBA 213,630 16,265 2,659 1,301 - 233,855 USDA 806 - - - - 806 Factored receivables 38,636 - - - - 38,636 Total $ 406,920 $ 17,508 $ 2,659 $ 1,660 $ - $ 428,747 December 31, 2020 Commercial and industrial $ 79,134 $ 730 $ - $ - $ - $ 79,864 Consumer installment 10,259 - - - - 10,259 Real estate – residential 4,319 - - - - 4,319 Real estate – commercial 44,326 - - 158 - 44,484 Real estate – construction and land 8,396 - - - - 8,396 SBA 243,533 5,242 1,794 1,850 - 252,419 USDA 801 - - - - 801 Total $ 390,768 $ 5,972 $ 1,794 $ 2,008 $ - $ 400,542 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | The following table summarizes the Company’s internal ratings of its loans as of the dates indicated: (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Total December 31, 2021 Beginning Balance $ 928 $ 91 $ 52 $ 527 $ 100 $ 1,225 $ 18 $ - $ 2,941 Provision for loan losses 189 (76 ) 24 342 (60 ) 1,031 2 762 2,214 Charge-offs - - - - - (952 ) - (168 ) (1,120 ) Recoveries 37 - - - - 20 - 60 117 Net recoveries (charge-offs) 37 - - - - (932 ) - (108 ) (1,003 ) Ending balance $ 1,154 $ 15 $ 76 $ 869 $ 40 $ 1,324 $ 20 $ 654 $ 4,152 December 31, 2020 Beginning Balance $ 501 $ 27 $ 22 $ 347 $ 76 $ 435 $ - $ - $ 1,408 Provision for loan losses 394 64 30 180 24 999 18 - 1,709 Charge-offs - - - - - (218 ) - - (218 ) Recoveries 33 - - - - 9 - - 42 Net recoveries 33 - - - - (209 ) - - (176 ) Ending balance $ 928 $ 91 $ 52 $ 527 $ 100 $ 1,225 $ 18 $ - $ 2,941 (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Total December 31, 2021 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 1,154 15 76 869 40 1,324 20 654 4,152 Ending balance $ 1,154 $ 15 $ 76 $ 869 $ 40 $ 1,324 $ 20 $ 654 $ 4,152 December 31, 2020 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 928 91 52 527 100 1,225 18 - 2,941 Ending balance $ 928 $ 91 $ 52 $ 527 $ 100 $ 1,225 $ 18 $ - $ 2,941 (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Total December 31, 2021 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 3,071 $ - $ - $ 3,071 Loans collectively evaluated for impairment 83,348 1,099 5,452 62,966 2,585 230,784 806 38,636 425,676 Ending balance $ 83,348 $ 1,099 $ 5,452 $ 62,966 $ 2,585 $ 233,855 $ 806 $ 38,636 $ 428,747 December 31, 2020 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 2,976 $ - $ - $ 2,976 Loans collectively evaluated for impairment 79,864 10,259 4,319 44,484 8,396 249,443 801 - 397,566 Ending balance $ 79,864 $ 10,259 $ 4,319 $ 44,484 $ 8,396 $ 252,419 $ 801 $ - $ 400,542 |
Premises and Equipment and Le_2
Premises and Equipment and Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Year-end premises and equipment were as follows: (In thousands) December 31, 2021 December 31, 2020 Land $ 698 $ 698 Leasehold improvements 195 182 Building 4,438 4,256 Furniture and equipment 1,767 1,760 7,098 6,896 Less: accumulated depreciation 2,369 2,047 Balance at end of period $ 4,729 $ 4,849 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of December 31, 2021, the minimum rental commitments under these noncancelable operating leases are as follows: (In thousands) 2022 $ 549 2023 274 2024 208 2025 204 2026 207 2027 and thereafter 54 Total minimum rental payments 1,496 Less: Interest (63 ) Present value of lease liabilities $ 1,433 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Other Real Estate, Roll Forward [Table Text Block] | A summary of the activity in OREO during the years ended December, 2021 and 2020 is as follows: For the years ended December 31, (In thousands) 2021 2020 Beginning balance $ - $ - Transfers from loan portfolio, at fair value 1,079 - Ending balance $ 1,079 $ - |
Goodwill and Core Deposit Int_2
Goodwill and Core Deposit Intangible (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Goodwill and core deposit intangible assets were as follows: (In thousands) December 31, 2021 December 31, 2020 Goodwill $ 21,440 $ 10,729 Core deposit intangible 777 979 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The carrying basis and accumulated amortization of the core deposit intangible as of December 31, 2021 and 2020 were as follows: (In thousands) December 31, 2021 December 31, 2020 Gross carrying basis $ 1,708 $ 1,708 Accumulated amortization (931 ) (729 ) Net carrying amount $ 777 $ 979 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated amortization expense of the core deposit intangible for each of the following five years is as follows: (In thousands) 2022 $ 208 2023 210 2024 210 2025 149 Total $ 777 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Statistical Disclosure for Banks [Abstract] | |
Deposit Liabilities, Type [Table Text Block] | Deposits were as follows : (In thousands, except percentages) December 31, 2021 December 31, 2020 Non-interest bearing demand $ 88,876 20 % $ 57,112 16 % Interest-bearing demand (NOW) 6,459 1 5,060 2 Money market accounts 133,536 30 105,079 30 Savings accounts 7,914 2 6,139 2 Time deposits 207,384 47 174,625 50 Total $ 444,169 100 % $ 348,015 100 % |
Time Deposit Maturities [Table Text Block] | As of December 31, 2021 the scheduled maturities of time deposits were as follows: (In thousands) 2022 $ 166,669 2023 26,187 2024 8,171 2025 5,502 2026 855 Total $ 207,384 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision (benefit) for income taxes consists of the following: (In thousands) 2021 2020 Current: Federal $ 4,860 $ 3,248 State 159 30 Total current 5,019 3,278 Deferred federal (216 ) (281 ) Income tax expense $ 4,803 $ 2,997 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2021 2020 U.S. statutory rate 21.0 % 21.0 % Non-deductible stock compensation and various other 1.0 0.5 Effective tax rate 22.0 % 21.5 % (In thousands) 2021 2020 Income tax expense computed at the statutory rate $ 4,552 $ 2,917 State income tax 159 30 Other 92 50 Income tax expense, as reported $ 4,803 $ 2,997 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 are as follows: (In thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 872 $ 618 Non-accrual loan interest 232 70 Servicing asset valuation allowance 13 13 Accrued liabilities 193 68 Stock compensation 102 73 Paycheck protection program deferred loan fees 37 343 Available for sale securities discount accretion 5 10 Net unrealized loss on securities available for sale 87 - Total deferred tax assets 1,541 1,195 Deferred tax liabilities: Net deferred loan costs (471 ) (371 ) Depreciation and amortization (233 ) (314 ) Held-to-maturity securities premium (45 ) (57 ) Loan discount (125 ) (93 ) Intangible assets (262 ) (258 ) Net unrealized gain on securities available for sale - (19 ) Total deferred tax liabilities (1,136 ) (1,112 ) Net deferred tax asset $ 405 $ 83 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | The following table summarizes loan commitments: (In thousands) December 31, 2021 December 31, 2020 Undisbursed loan commitments $ 33,704 $ 19,880 Standby letters of credit 282 162 $ 33,986 $ 20,042 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Schedule of Regulatory Capital Ratio Requirments under Banking Regulations [Table Text Block] | In addition, the Basel III regulatory capital reforms (“Basel III”) implemented a capital conservation buffer of 2.5%. The Basel III minimum capital ratio requirements as applicable to the Company and the Bank are summarized in the table below. BASEL III Minimum for Capital Adequacy Requirements BASEL III Additional Capital Conservation Buffer BASEL III Ratio with Capital Conservation Buffer Total Risk Based Capital (total capital to risk weighted assets) 8.0 % 2.5 % 10.5 % Tier 1 Risk Based Capital (tier 1 to risk weighted assets) 6.0 % 2.5 % 8.5 % Common Equity Tier 1 Risk Based ( CET1 to risk weighted assets) 4.5 % 2.5 % 7.0 % Tier 1 Leverage Ratio (tier 1 to average assets) 4.0 % - % 4.0 % |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | The regulatory capital ratios of the Company and the Bank are as follows: Actual Minimum Capital Required - Basel III Required to be Considered Well Capitalized (In thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 66,946 18.55 % $ 37,894 10.50 % $ 36,089 10.00 % T Bank, N.A. 67,454 18.87 37,542 10.50 35,754 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 62,794 17.40 30,676 8.50 28,871 8.00 T Bank, N.A. 63,302 17.70 30,391 8.50 28,604 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 45,544 12.62 25,263 7.00 23,458 6.50 T Bank, N.A. 63,302 17.70 25,028 7.00 23,240 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 62,794 11.82 21,245 4.00 26,557 5.00 T Bank, N.A. 63,302 12.06 21,002 4.00 26,252 5.00 As of December 31, 2020 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 50,987 18.22 % $ 29,379 10.50 % $ 27,980 10.00 % T Bank, N.A. 50,012 18.25 28,782 10.50 27,411 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 48,046 17.17 23,783 8.50 22,384 8.00 T Bank, N.A. 47,071 17.17 23,299 8.50 21,929 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 30,796 11.01 19,586 7.00 18,187 6.50 T Bank, N.A. 47,071 17.17 19,188 7.00 17,817 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 48,046 11.66 16,480 4.00 20,601 5.00 T Bank, N.A. 47,071 11.58 16,257 4.00 20,322 5.00 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The tables below present the financial information for each segment that is specifically identifiable, or based on allocations using internal methods, for the years ended December 31, 2021 and 2020: (In thousands) Banking Other Financial Services HoldCo Consolidated Year Ended December 31, 2021 Income Statement Total interest income $ 29,384 $ - $ - $ 29,384 Total interest expense 2,736 - 891 3,627 Provision for loan losses 2,214 - - 2,214 Net interest income (loss) after provision for loan losses 24,434 - (891 ) 23,543 Non-interest income 991 35,428 205 36,624 Depreciation and amortization expense 379 144 - 523 All other non-interest expense 11,441 24,737 1,629 37,807 Income (loss) before income tax $ 13,605 $ 10,547 $ (2,315 ) $ 21,837 Goodwill and other intangibles $ 19,867 $ 2,350 $ - $ 22,217 Total assets $ 573,726 $ 10,833 $ 452 $ 585,011 (In thousands) Banking Other Financial Services HoldCo Consolidated Year Ended December 31, 2020 Income Statement Total interest income $ 20,878 $ - $ - $ 20,878 Total interest expense 4,394 - 875 5,269 Provision for loan losses 1,709 - - 1,709 Net-interest income (loss) after provision for loan losses 14,775 - (875 ) 13,900 Non-interest income 1,492 32,120 22 33,721 Depreciation and amortization expense 370 244 - 614 All other non-interest expense 7,865 24,068 1,065 33,085 Income before income tax $ 8,032 $ 7,808 $ (1,918 ) $ 13,922 Goodwill and other intangibles $ 9,358 $ 2,350 $ - $ 11,708 Total assets $ 499,580 $ 13,571 $ 275 $ 513,426 |
Fair Value of Financials Inst_2
Fair Value of Financials Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes securities available for sale measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: (In thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value As of December 31, 2021 Securities available for sale: U.S. government agencies $ - $ 15,402 $ - $ 15,402 Mortgage-backed securities - 1,754 - 1,754 As of December 31, 2020 Securities available for sale: U.S. government agencies $ - $ 14,949 $ - $ 14,949 Mortgage-backed securities - 2,447 - 2,447 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Carrying amounts and estimated fair values of other financial instruments by level of valuation input were as follows: December 31, 2021 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 45,992 $ 45,992 Level 2 inputs: Securities available for sale 17,156 17,156 Securities, restricted 2,432 2,432 Loans held for sale 33,762 37,549 Accrued interest receivable 2,268 3,787 Level 3 inputs: Securities held to maturity 19,673 19,673 Securities not readily marketable 100 100 Loans, net 424,595 430,810 Servicing asset 503 503 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 88,876 88,876 Level 2 inputs: Interest bearing deposits 355,293 359,606 Borrowed funds 46,521 46,521 Accrued interest payable 561 561 December 31, 2020 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 46,868 $ 46,868 Level 2 inputs: Securities available for sale 17,396 17,396 Securities, restricted 2,431 2,431 Loans held for sale 14,864 16,462 Accrued interest receivable 2,440 2,440 Level 3 inputs: Securities held to maturity 5,776 5,776 Securities not readily marketable 100 100 Loans, net 397,601 389,143 Servicing asset 809 809 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 57,112 57,112 Level 2 inputs: Interest bearing deposits 290,903 292,174 Borrowed funds 95,690 95,690 Accrued interest payable 596 596 |
Integra Acquisition (Tables)
Integra Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | A summary of the fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill, which represents the expected synergies from the Integra merger, and is not deductible for tax purposes, is as follows: (In thousands) Assets acquired: Factored receivables $ 33,442 Other assets 270 Premises and equipment 24 Loans receivable 1,103 34,839 Liabilities assumed: Deposits 2,535 Other liabilities 253 Borrowings 28,927 31,715 Fair value of net assets acquired 3,124 Consideration: Cash paid 3,185 Common stock 10,650 Total consideration 13,835 Goodwill $ 10,711 |
Business Acquisition, Pro Forma Information [Table Text Block] | The tables have been prepared for comparative purposes only and are not necessarily indicative of the actual results that would have been obtained had the acquisition occurred on January 1, 2020, nor is it indicative of future results. (In thousands) Actual Integra results of operations for the Period January 1, 2021 through June 30, 2021 Actual for the Year Ended December 31, 2021 Pro Forma for the Year Ended December 31, 2021 Net interest income $ 2,373 $ 23,543 $ 25,916 Noninterest income 248 36,624 36,872 Noninterest expense 1,377 38,330 39,707 Net income after income taxes 983 17,034 18,017 (In thousands) Actual Integra results of operations for the Year Ended December 31, 2020 Actual for the Year Ended December 31, 2020 Pro Forma for the Year Ended December 31, 2020 Net interest income $ 2,706 $ 13,900 $ 16,606 Noninterest income 401 33,721 34,122 Noninterest expense 1,652 33,699 35,351 Net income after income taxes 1,149 10,925 12,074 |
Parent Company Condensed Fina_2
Parent Company Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet [Table Text Block] | (In thousands) December 31, 2021 December 31, 2020 ASSETS Cash and due from banks $ 3,464 $ 221 Securities, not readily marketable 100 100 Investment in subsidiaries 81,907 57,646 Other assets 268 2,175 Total assets $ 85,739 $ 60,142 LIABILITIES AND SHAREHOLDERS EQUITY Other liabilities $ 552 $ 129 Shareholders’ equity 85,187 60,013 Total liabilities and shareholders’ equity $ 85,739 $ 60,142 |
Condensed Income Statement [Table Text Block] | (In thousands) 2021 2020 Income from subsidiaries $ 18,158 $ 11,710 Other income 736 527 Total income 18,894 12,237 Non-interest expense: Salaries and employee benefits 946 682 Professional and administrative 297 267 Other 826 527 Total non-interest expense 2,069 1,476 Income before income taxes 16,825 10,761 Income tax benefit 209 164 Net Income $ 17,034 $ 10,925 |
Comprehensive Income (Loss) [Table Text Block] | (In thousands) 2021 2020 Net Income $ 17,034 $ 10,925 Other comprehensive (loss) income: Change in unrealized (loss) gain on investment securities available for sale (502 ) 19 Tax effect (106 ) 5 Other comprehensive (loss) income (396 ) 14 Comprehensive income $ 16,638 $ 10,939 |
Condensed Cash Flow Statement [Table Text Block] | (In thousands) 2021 2020 Cash Flows from Operating Activities Net income $ 17,034 $ 10,925 Adjustments to reconcile net income to net cash used in operating activities: Equity in income of subsidiaries (18,158 ) (11,710 ) Stock based compensation 330 151 Net change in other assets 1,907 (1,703 ) Net change in other liabilities 422 - Net cash provided by (used in) operating activities 1,535 (2,337 ) Cash Flows from Investing Activities Contributions to subsidiaries (9,310 ) - Distributions from subsidiaries 13,461 2,571 Net cash provided by investing activities 4,151 2,571 Cash Flows from Financing Activities Proceeds from issuance of common shares 400 - Dividends paid on Series B Preferred Shares (1,552 ) (1,552 ) Dividends on common shares (1,291 ) - Net cash used in financing activities (2,443 ) (1,552 ) Net change in cash and cash equivalents 3,243 (1,318 ) Cash and cash equivalents at beginning of period 221 1,539 Cash and cash equivalents at end of period $ 3,464 $ 221 Supplemental disclosures of cash flow information Cash paid during the year for: Income taxes $ 5,427 $ 700 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Jan. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Increase (Decrease) in Loans Held-for-sale (in Dollars) | $ 42,800 | $ 26,400 | ||
Other Real Estate, Foreclosed Assets, and Repossessed Assets (in Dollars) | 1,079 | 0 | $ 0 | |
Advertising Expense (in Dollars) | $ 370 | $ 40 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 5.37 | $ 5.37 | ||
Share-based Payment Arrangement, Option [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants (in Shares) | shares | 190,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 5.37 | |||
Restricted Stock [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants (in Shares) | shares | 210,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 4.81 | |||
The Nolan Company ("Nolan") [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Number of Subsidiaries | 4 | |||
Minimum [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 58 months | |||
Minimum [Member] | Building [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Minimum [Member] | Furniture and Fixtures [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Minimum [Member] | Land Improvements [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Maximum [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 100 months | |||
Maximum [Member] | Building [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 39 years | |||
Maximum [Member] | Furniture and Fixtures [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Maximum [Member] | Land Improvements [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Series B Preferred Stock [Member] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||
Increase (Decrease) in Loans Held-for-sale (in Dollars) | $ 42,800 | $ 26,400 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||
Net income available to common shareholders (in Dollars) | $ 15,482 | $ 9,373 |
Average shares outstanding | 6,804,228 | 6,568,750 |
Effect of common stock-based compensation | 218,000 | 15,000 |
Average diluted shares outstanding | 7,021,766 | 6,584,113 |
Basic earnings per share (in Dollars per share) | $ 2.28 | $ 1.43 |
Diluted earnings per share (in Dollars per share) | $ 2.21 | $ 1.42 |
Securities (Details)
Securities (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Securities (Details) [Line Items] | ||
Securities, Description | Securities available for sale consist of U.S. government agency securities and mortgage-backed securities guaranteed by U.S. government agencies. Securities held to maturity consist of Property Assessed Clean Energy (“PACE”) and Public Improvement District/Tax Increment Reinvestment Zone (“PID/TIRZ”) investments. These investment contracts or bonds located in Texas, California and Florida, originate under a contractual obligation between the property owners, the local county or city administration, and a third-party administrator and sponsor. PACE assessments are created to fund the purchase and installation of energy saving improvements to the property such as solar panels. PID/TIRZ assessments are used to pay for the development costs of a residential subdivision. Generally, as a property assessment, the total assessment is repaid in installments over a period of 5 to 32 years by the then current property owner(s). Each installment is collected by the County or City Tax Collector where the property is located. The assessments are an obligation of the property. Securities, restricted consist of Federal Reserve Bank of Dallas (“FRB”) and Federal Home Loan Bank of Dallas (“FHLB”) stock, which are carried at cost. | |
Federal Reserve Bank Stock | $ 1,200,000 | $ 1,200,000 |
Federal Home Loan Bank Stock | 1,300,000 | 1,300,000 |
Marketable Securities, Current | $ 100,000 | 100,000 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 12 | |
Asset Pledged as Collateral [Member] | ||
Securities (Details) [Line Items] | ||
Financial Instruments, Owned, at Fair Value | $ 163,000 | $ 554,000 |
Securities (Details) - Schedule
Securities (Details) - Schedule of Available-for-sale Securities Reconciliation - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Securities available for sale: | ||
Securities available for sale, Amortized Cost | $ 17,571 | $ 17,309 |
Securities available for sale, Gross Unrealized Gains | 34 | 112 |
Securities available for sale, Gross Unrealized Losses | 449 | 25 |
Securities available for sale, Estimated Fair Value | 17,156 | 17,396 |
Securities held to maturity: | ||
Securities held to maturity, Amortized Cost | 19,673 | |
Securities held to maturity, Gross Unrealized Gains | 0 | |
Securities held to maturity, Gross Unrealized Losses | 0 | |
Securities held to maturity, Estimated Fair Value | 19,673 | |
Securities, restricted: | ||
Securities not readily marketable, Amortized Cost | 100 | 100 |
Securities not readily marketable, Gross Unrealized Gains | 0 | 0 |
Securities not readily marketable, Gross Unrealized Losses | 0 | 0 |
Securities not readily marketable, Estimated Fair Value | 100 | 100 |
US Government Agencies Debt Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, Amortized Cost | 15,847 | 14,936 |
Securities available for sale, Gross Unrealized Gains | 4 | 38 |
Securities available for sale, Gross Unrealized Losses | 449 | 25 |
Securities available for sale, Estimated Fair Value | 15,402 | 14,949 |
Collateralized Mortgage Backed Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, Amortized Cost | 1,724 | 2,373 |
Securities available for sale, Gross Unrealized Gains | 30 | 74 |
Securities available for sale, Gross Unrealized Losses | 0 | 0 |
Securities available for sale, Estimated Fair Value | 1,754 | 2,447 |
Property Assessed Clean Energy [Member] | ||
Securities held to maturity: | ||
Securities held to maturity, Amortized Cost | 2,731 | 5,776 |
Securities held to maturity, Gross Unrealized Gains | 0 | 0 |
Securities held to maturity, Gross Unrealized Losses | 0 | 0 |
Securities held to maturity, Estimated Fair Value | 2,731 | 5,776 |
Public Improvement District TIRZ [Member] | ||
Securities held to maturity: | ||
Securities held to maturity, Amortized Cost | 16,942 | |
Securities held to maturity, Gross Unrealized Gains | 0 | |
Securities held to maturity, Gross Unrealized Losses | 0 | |
Securities held to maturity, Estimated Fair Value | 16,942 | |
Other Debt Obligations [Member] | ||
Securities, restricted: | ||
Securities, Amortized Cost | 2,432 | 2,431 |
Securities, Gross Unrealized Gains | 0 | 0 |
Securities, Gross Unrealized Losses | 0 | 0 |
Securities, Estimated Fair Value | $ 2,432 | $ 2,431 |
Securities (Details) - Debt Sec
Securities (Details) - Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value - US Government Agencies Debt Securities [Member] $ in Thousands | Dec. 31, 2021USD ($) |
Securities (Details) - Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value [Line Items] | |
Less than 12 months, Fair Value | $ 9,438 |
Less than 12 months, Unrealized Losses | 256 |
12 months or longer, Fair Value | 5,803 |
12 months or longer, Unrealized Losses | 193 |
Total, Fair Value | 15,241 |
Total, Unrealized Losses | $ 449 |
Securities (Details) - Investme
Securities (Details) - Investments Classified by Contractual Maturity Date - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments Classified by Contractual Maturity Date [Abstract] | ||
Due in one year or less, Available for Sale Amortized Cost | $ 21 | |
Due in one year or less, Available for Sale Estimated Fair Value | 21 | |
Due in one year or less, Held to Maturity Amortized Cost | 0 | |
Due in one year or less, Held to Maturity Estimated Fair Value | 0 | |
Due after one year through five years, Available for Sale Amortized Cost | 1,995 | |
Due after one year through five years, Available for Sale Estimated Fair Value | 1,927 | |
Due after one year through five years, Held to Maturity Amortized Cost | 2,707 | |
Due after one year through five years, Held to Maturity Estimated Fair Value | 2,707 | |
Due after five years through ten years, Available for Sale Amortized Cost | 10,157 | |
Due after five years through ten years, Available for Sale Estimated Fair Value | 9,916 | |
Due after five years through ten years, Held to Maturity Amortized Cost | 0 | |
Due after five years through ten years, Held to Maturity Estimated Fair Value | 0 | |
Due after ten years, Available for Sale Amortized Cost | 3,674 | |
Due after ten years, Available for Sale Estimated Fair Value | 3,538 | |
Due after ten years, Held to Maturity Amortized Cost | 16,966 | |
Due after ten years, Held to Maturity Estimated Fair Value | 16,966 | |
Mortgage-backed securities, Available for Sale Amortized Cost | 1,724 | |
Mortgage-backed securities, Available for Sale Estimated Fair Value | 1,754 | |
Mortgage-backed securities, Held to Maturity Amortized Cost | 0 | |
Mortgage-backed securities, Held to Maturity Estimated Fair Value | 0 | |
Total, Available for Sale Amortized Cost | 17,571 | $ 17,309 |
Total, Available for Sale Estimated Fair Value | 17,156 | 17,396 |
Total, Held to Maturity Amortized Cost | 19,673 | $ 5,776 |
Total, Held to Maturity Estimated Fair Value | $ 19,673 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 428,747 | $ 400,542 |
Dental Loans | $ 67,300 | $ 67,200 |
Percentage of Dental Practice to Loan Portfolio | 15.70% | 16.80% |
Proceeds from Sale of Loans Held-for-sale | $ 1,100 | $ 9,800 |
Gain (Loss) on Sales of Loans, Net | 101 | 722 |
Servicing Asset at Fair Value, Additions | 19 | 152 |
Increase (Decrease) in Loans Held-for-sale | $ 42,800 | 26,400 |
Number of SBA Loan Programs | 2 | |
Minimum [Member] | ||
Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Loans Guarantee On Principal Balance | 75.00% | |
Maximum [Member] | ||
Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Loans Guarantee On Principal Balance | 80.00% | |
SBA [Member] | ||
Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Guarantor Obligations Percentage | 100.00% | |
Loans and Leases Receivable, Gross | $ 233,855 | 252,419 |
Financing Receivable, Held-for-Sale, Not Part of Disposal Group, after Valuation Allowance | 33,800 | 14,900 |
Paycheck Protection Program ("PPP") [Member] | ||
Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 34,100 | $ 82,500 |
Percentage of Dental Practice to Loan Portfolio | 17.10% | 21.10% |
Business and Industry Loans [Member] | ||
Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Description of Loan Program | The Company serves the small business community by offering loans promulgated under the SBA’s 7(a) and 504 loan programs, and loans guaranteed by the USDA. SBA 7(a) and USDA loans are typically guaranteed by each agency in amounts ranging from 75% to 80% of the principal balance. For SBA construction loans, the Company records the guaranteed funded portion of the loans as held for sale. When the SBA loans are fully funded, the Company may sell the guaranteed portion into the secondary market, on a servicing-retained basis, or reclassify from loans held for sale to loans held for investment if the Company determines that holding these loans provide better long-term risk adjusted returns than selling the loans. In calculating gain on the sale of loans, the Company performs an allocation based on the relative fair values of the sold portion and retained portion of the loan. The Company’s assumptions are validated by reference to external market information. | |
SBA 7(a) [Member] | ||
Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Description of Loan Program | The 7(a) program serves as the SBA’s primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. Loan proceeds under this program can be used for most business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements and debt refinancing. Loan maturity is generally up to 10 years for non-real estate collateral and up to 25 years for real estate collateral. The 7(a) loan is approved and funded by a qualified lender, partially guaranteed by the SBA and subject to applicable regulations. In general, the SBA guarantees up to 75% (100% for PPP loans) of the loan amount depending on loan size. The Company is required by the SBA to service the loan and retain a contractual minimum of 5% on all SBA 7(a) loans, but generally retains 25% (the unguaranteed portion). The servicing spread is 1% of the guaranteed portion of the loan that is sold in the secondary market. | |
SBA 504 [Member] | ||
Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 35,348 | $ 35,553 |
Description of Loan Program | The 504 program is an economic development-financing program providing long-term, low down payment loans to businesses. Typically, a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100% SBA-guaranteed debenture) with a junior lien covering up to 40% of the total cost, and a contribution of at least 10% equity from the borrower. Debenture limits are $5.0 million for regular 504 loans and $5.5 million for those 504 loans that meet a public policy goal. | |
USDA [Member] | ||
Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 806 | $ 801 |
Description of Loan Program | These loans are similar to the SBA product, except they are guaranteed by the USDA. The guaranteed amount is generally 80%. B&I loans are made to businesses in designated rural areas and are generally larger loans to larger businesses than the SBA 7(a) loans. Similar to the SBA 7(a) product, they can be sold into the secondary market. These loans can be utilized for rural commercial real estate and equipment. The loans can have maturities up to 30 years and the rates can be fixed or variable. | |
Loans with Modifications [Member] | ||
Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Number of Loan Modifications | 2 | 11 |
Financing Receivable, after Allowance for Credit Loss | $ 679 | $ 4,300 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Details) - Schedule of Accounts, Notes, Loans and Financing Receivables - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable | $ 428,747 | $ 400,542 | |
Less: | |||
Allowance for loan losses | 4,152 | 2,941 | $ 1,408 |
Net loans | 424,595 | 397,601 | |
Commercial and Industrial Sector [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable | 83,348 | 79,864 | |
Less: | |||
Allowance for loan losses | 1,154 | 928 | 501 |
Consumer Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable | 1,099 | 10,259 | |
Less: | |||
Allowance for loan losses | 15 | 91 | 27 |
Residential Mortgage [Member] | Real Estate Sector [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable | 5,452 | 4,319 | |
Less: | |||
Allowance for loan losses | 76 | 52 | 22 |
Commercial Real Estate [Member] | Real Estate Sector [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable | 62,966 | 44,484 | |
Less: | |||
Allowance for loan losses | 869 | 527 | 347 |
Construction Loans [Member] | Real Estate Sector [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable | 2,585 | 8,396 | |
Less: | |||
Allowance for loan losses | 40 | 100 | 76 |
SBA 7(a) guaranteed [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable | 145,983 | 164,687 | |
SBA 7(a) unguaranteed [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable | 52,524 | 52,179 | |
SBA 504 [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable | 35,348 | 35,553 | |
USDA [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable | 806 | 801 | |
Less: | |||
Allowance for loan losses | 20 | 18 | $ 0 |
Factored Receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable | $ 38,636 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Details) - Financing Receivable, Nonaccrual - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | $ 2,188 | $ 1,793 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 158 |
Commercial Real Estate [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 149 | 0 |
SBA 7(a) guaranteed [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 2,039 | 1,118 |
SBA 7(a) unguaranteed [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | $ 0 | $ 517 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Details) - Impaired Financing Receivables - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | $ 3,658 | $ 6,649 |
Recorded Investment With No Allowance | 3,071 | 2,976 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 3,071 | 2,976 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 6,406 | 3,529 |
Interest Income Recognized | 25 | 61 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 73 | 10 |
Interest Income Recognized | 4 | 0 |
SBA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 3,658 | 6,649 |
Recorded Investment With No Allowance | 3,071 | 2,976 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 3,071 | 2,976 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 6,333 | 3,206 |
Interest Income Recognized | $ 21 | 61 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 0 | |
Recorded Investment With No Allowance | 0 | |
Recorded Investment With Allowance | 0 | |
Total Recorded Investment | 0 | |
Related Allowance | 0 | |
Average Recorded Investment | 313 | |
Interest Income Recognized | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Details) - Financing Receivable, Past Due - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | $ 428,747 | $ 400,542 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 400 | 0 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 83,348 | 79,864 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4,128 | 1,914 |
Financing Receivable, Recorded Investment, Total Current | 4,128 | 1,914 |
Financial Asset, Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4 | 0 |
Financing Receivable, Recorded Investment, Total Current | 4 | 0 |
Financia lAsset Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 424,619 | 398,628 |
Financing Receivable, Recorded Investment, Total Current | 424,619 | 398,628 |
Financia lAsset Not Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 83,344 | 79,864 |
Financing Receivable, Recorded Investment, Total Current | 83,344 | 79,864 |
Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,728 | 121 |
Financing Receivable, Recorded Investment, Total Current | 3,728 | 121 |
Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4 | 0 |
Financing Receivable, Recorded Investment, Total Current | 4 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 400 | 1,793 |
Financing Receivable, Recorded Investment, Total Current | 400 | 1,793 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 1,099 | 10,259 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Consumer Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Consumer Portfolio Segment [Member] | Financia lAsset Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,099 | 10,259 |
Financing Receivable, Recorded Investment, Total Current | 1,099 | 10,259 |
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 5,452 | 4,319 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Residential Mortgage [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Residential Mortgage [Member] | Financia lAsset Not Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 5,452 | 4,319 |
Financing Receivable, Recorded Investment, Total Current | 5,452 | 4,319 |
Residential Mortgage [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Residential Mortgage [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 62,966 | 44,484 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Commercial Real Estate [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 219 | 279 |
Financing Receivable, Recorded Investment, Total Current | 219 | 279 |
Commercial Real Estate [Member] | Financia lAsset Not Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 62,747 | 44,205 |
Financing Receivable, Recorded Investment, Total Current | 62,747 | 44,205 |
Commercial Real Estate [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 219 | 121 |
Financing Receivable, Recorded Investment, Total Current | 219 | 121 |
Commercial Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 158 |
Financing Receivable, Recorded Investment, Total Current | 0 | 158 |
Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 2,585 | 8,396 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Construction Loans [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Construction Loans [Member] | Financia lAsset Not Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,585 | 8,396 |
Financing Receivable, Recorded Investment, Total Current | 2,585 | 8,396 |
Construction Loans [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Construction Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
SBA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 233,855 | 252,419 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
SBA [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,762 | 1,635 |
Financing Receivable, Recorded Investment, Total Current | 1,762 | 1,635 |
SBA [Member] | Financia lAsset Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 232,093 | 250,784 |
Financing Receivable, Recorded Investment, Total Current | 232,093 | 250,784 |
SBA [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,762 | 0 |
Financing Receivable, Recorded Investment, Total Current | 1,762 | 0 |
SBA [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 1,635 |
Financing Receivable, Recorded Investment, Total Current | 0 | 1,635 |
USDA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 806 | 801 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
USDA [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
USDA [Member] | Financia lAsset Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 806 | 801 |
Financing Receivable, Recorded Investment, Total Current | 806 | 801 |
USDA [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
USDA [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Factored Receivables [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 38,636 | $ 0 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 400 | |
Factored Receivables [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,143 | |
Financing Receivable, Recorded Investment, Total Current | 2,143 | |
Factored Receivables [Member] | Financia lAsset Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 36,493 | |
Financing Receivable, Recorded Investment, Total Current | 36,493 | |
Factored Receivables [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,743 | |
Financing Receivable, Recorded Investment, Total Current | 1,743 | |
Factored Receivables [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 400 | |
Financing Receivable, Recorded Investment, Total Current | $ 400 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Details) - Financing Receivable Credit Quality Indicators - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | $ 428,747 | $ 400,542 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 406,920 | 390,768 |
Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 17,508 | 5,972 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2,659 | 1,794 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 1,660 | 2,008 |
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 83,348 | 79,864 |
Commercial and Industrial Sector [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 82,105 | 79,134 |
Commercial and Industrial Sector [Member] | Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 1,243 | 730 |
Commercial and Industrial Sector [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Commercial and Industrial Sector [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Commercial and Industrial Sector [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 1,099 | 10,259 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 1,099 | 10,259 |
Consumer Portfolio Segment [Member] | Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 5,452 | 4,319 |
Residential Mortgage [Member] | Pass [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 5,242 | 4,319 |
Residential Mortgage [Member] | Pass-Watch [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Residential Mortgage [Member] | Special Mention [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Residential Mortgage [Member] | Substandard [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 210 | 0 |
Residential Mortgage [Member] | Doubtful [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 62,966 | 44,484 |
Commercial Real Estate [Member] | Pass [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 62,817 | 44,326 |
Commercial Real Estate [Member] | Pass-Watch [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Commercial Real Estate [Member] | Special Mention [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Commercial Real Estate [Member] | Substandard [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 149 | 158 |
Commercial Real Estate [Member] | Doubtful [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2,585 | 8,396 |
Construction Loans [Member] | Pass [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2,585 | 8,396 |
Construction Loans [Member] | Pass-Watch [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Construction Loans [Member] | Special Mention [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Construction Loans [Member] | Substandard [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Construction Loans [Member] | Doubtful [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
SBA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 233,855 | 252,419 |
SBA [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 213,630 | 243,533 |
SBA [Member] | Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 16,265 | 5,242 |
SBA [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2,659 | 1,794 |
SBA [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 1,301 | 1,850 |
SBA [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
USDA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 806 | 801 |
USDA [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 806 | 801 |
USDA [Member] | Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
USDA [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
USDA [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
USDA [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Factored Receivables [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 38,636 | $ 0 |
Factored Receivables [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 38,636 | |
Factored Receivables [Member] | Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | |
Factored Receivables [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | |
Factored Receivables [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | |
Factored Receivables [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Details) - Financing Receivable, Allowance for Credit Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | $ 2,941 | $ 1,408 |
Provision for loan losses | 2,214 | 1,709 |
Charge-offs | (1,120) | (218) |
Recoveries | 117 | 42 |
Net recoveries (charge-offs) | (1,003) | (176) |
Ending balance | 4,152 | 2,941 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 4,152 | 2,941 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 3,071 | 2,976 |
Loans collectively evaluated for impairment | 425,676 | 397,566 |
Ending balance | 428,747 | 400,542 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 928 | 501 |
Provision for loan losses | 189 | 394 |
Charge-offs | 0 | 0 |
Recoveries | 37 | 33 |
Net recoveries (charge-offs) | 37 | 33 |
Ending balance | 1,154 | 928 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 1,154 | 928 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 83,348 | 79,864 |
Ending balance | 83,348 | 79,864 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 91 | 27 |
Provision for loan losses | (76) | 64 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net recoveries (charge-offs) | 0 | 0 |
Ending balance | 15 | 91 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 15 | 91 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 1,099 | 10,259 |
Ending balance | 1,099 | 10,259 |
Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 52 | 22 |
Provision for loan losses | 24 | 30 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net recoveries (charge-offs) | 0 | 0 |
Ending balance | 76 | 52 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 76 | 52 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 5,452 | 4,319 |
Ending balance | 5,452 | 4,319 |
Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 527 | 347 |
Provision for loan losses | 342 | 180 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net recoveries (charge-offs) | 0 | 0 |
Ending balance | 869 | 527 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 869 | 527 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 62,966 | 44,484 |
Ending balance | 62,966 | 44,484 |
Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 100 | 76 |
Provision for loan losses | (60) | 24 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net recoveries (charge-offs) | 0 | 0 |
Ending balance | 40 | 100 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 40 | 100 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 2,585 | 8,396 |
Ending balance | 2,585 | 8,396 |
SBA [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 1,225 | 435 |
Provision for loan losses | 1,031 | 999 |
Charge-offs | (952) | (218) |
Recoveries | 20 | 9 |
Net recoveries (charge-offs) | (932) | (209) |
Ending balance | 1,324 | 1,225 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 1,324 | 1,225 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 3,071 | 2,976 |
Loans collectively evaluated for impairment | 230,784 | 249,443 |
Ending balance | 233,855 | 252,419 |
USDA [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 18 | 0 |
Provision for loan losses | 2 | 18 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net recoveries (charge-offs) | 0 | 0 |
Ending balance | 20 | 18 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 20 | 18 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 806 | 801 |
Ending balance | 806 | 801 |
Other Financing Receivable [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning Balance | 0 | 0 |
Provision for loan losses | 762 | 0 |
Charge-offs | (168) | 0 |
Recoveries | 60 | 0 |
Net recoveries (charge-offs) | (108) | 0 |
Ending balance | 654 | 0 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 654 | 0 |
December 31, 2020 | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 38,636 | 0 |
Ending balance | $ 38,636 | $ 0 |
Premises and Equipment and Le_3
Premises and Equipment and Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 322 | $ 412 |
Operating Lease, Liability | 1,433 | 1,000 |
Operating Lease, Right-of-Use Asset | $ 1,400 | $ 963 |
Operating Lease, Weighted Average Remaining Lease Term | 47 months | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.71% | |
Operating Leases, Future Minimum Payments Receivable | $ 734 |
Premises and Equipment and Le_4
Premises and Equipment and Leases (Details) - Property, Plant and Equipment - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 7,098 | $ 6,896 |
Less: accumulated depreciation | 2,369 | 2,047 |
Balance at end of period | 4,729 | 4,849 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 698 | 698 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 195 | 182 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 4,438 | 4,256 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 1,767 | $ 1,760 |
Premises and Equipment and Le_5
Premises and Equipment and Leases (Details) - Schedule of Future Minimum Rental Payments for Operating Leases - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | ||
2022 | $ 549 | |
2023 | 274 | |
2024 | 208 | |
2025 | 204 | |
2026 | 207 | |
2027 and thereafter | 54 | |
Net minimum rental payments | 1,496 | |
Less: Interest | (63) | |
Present value of lease liabilities | $ 1,433 | $ 1,000 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - Other Real Estate, Roll Forward - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Real Estate, Roll Forward [Abstract] | ||
Beginning balance | $ 0 | $ 0 |
Transfers from loan portfolio, at fair value | 1,079 | 0 |
Ending balance | $ 1,079 | $ 0 |
Goodwill and Core Deposit Int_3
Goodwill and Core Deposit Intangible (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Core Deposit Intangible (Details) [Line Items] | ||
Goodwill | $ 21,440 | $ 10,729 |
Amortization of Intangible Assets | 202 | $ 201 |
The Nolan Company ("Nolan") [Member] | ||
Goodwill and Core Deposit Intangible (Details) [Line Items] | ||
Goodwill | $ 10,700 | |
Minimum [Member] | ||
Goodwill and Core Deposit Intangible (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 58 months | |
Minimum [Member] | Core Deposits [Member] | ||
Goodwill and Core Deposit Intangible (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Maximum [Member] | ||
Goodwill and Core Deposit Intangible (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 100 months | |
Maximum [Member] | Core Deposits [Member] | ||
Goodwill and Core Deposit Intangible (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 12 years |
Goodwill and Core Deposit Int_4
Goodwill and Core Deposit Intangible (Details) - Schedule of Intangible Assets and Goodwill - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Core Deposit Intangible (Details) - Schedule of Intangible Assets and Goodwill [Line Items] | ||
Goodwill | $ 21,440 | $ 10,729 |
Core deposit intangible | 1,708 | 1,708 |
Core Deposits [Member] | ||
Goodwill and Core Deposit Intangible (Details) - Schedule of Intangible Assets and Goodwill [Line Items] | ||
Core deposit intangible | $ 777 | $ 979 |
Goodwill and Core Deposit Int_5
Goodwill and Core Deposit Intangible (Details) - Finite-lived Intangible Assets, Amortization Expense - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-lived Intangible Assets, Amortization Expense [Abstract] | ||
Gross carrying basis | $ 1,708 | $ 1,708 |
Accumulated amortization | (931) | (729) |
Net carrying amount | $ 777 | $ 979 |
Goodwill and Core Deposit Int_6
Goodwill and Core Deposit Intangible (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2022 | $ 208 | |
2023 | 210 | |
2024 | 210 | |
2025 | 149 | |
Total | $ 777 | $ 979 |
Deposits (Details) - Deposit Li
Deposits (Details) - Deposit Liabilities, Type - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposit Liabilities, Type [Abstract] | ||
Non-interest bearing demand | $ 88,876 | $ 57,112 |
Non-interest bearing demand, percentage | 20.00% | 16.00% |
Interest-bearing demand (NOW) | $ 6,459 | $ 5,060 |
Interest-bearing demand (NOW), percentage | 1.00% | 2.00% |
Money market accounts | $ 133,536 | $ 105,079 |
Money market accounts, percentage | 30.00% | 30.00% |
Savings accounts | $ 7,914 | $ 6,139 |
Savings accounts, percentage | 2.00% | 2.00% |
Time deposits | $ 207,384 | $ 174,625 |
Time deposits, percentage | 47.00% | 50.00% |
Total | $ 444,169 | $ 348,015 |
Total, percentage | 100.00% | 100.00% |
Deposits (Details) - Time Depos
Deposits (Details) - Time Deposit Maturities - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Time Deposit Maturities [Abstract] | ||
2022 | $ 166,669 | |
2023 | 26,187 | |
2024 | 8,171 | |
2025 | 5,502 | |
2026 | 855 | |
Total | $ 207,384 | $ 174,625 |
Borrowed Funds and Subordinat_2
Borrowed Funds and Subordinated Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | |
Borrowed Funds and Subordinated Notes (Details) [Line Items] | ||||
Subordinated Debt | $ 12,000 | $ 12,000 | ||
Subordinated Debt [Member] | ||||
Borrowed Funds and Subordinated Notes (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.125% | 7.125% | ||
Subordinated Debt | 12,000 | 12,000 | ||
Proceeds from Issuance of Subordinated Long-term Debt | $ 4,000 | $ 8,000 | ||
Debt Instrument, Maturity Date | Mar. 31, 2028 | Jul. 20, 2027 | ||
Federal Reserve Bank Advances [Member] | ||||
Borrowed Funds and Subordinated Notes (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 34,500 | 83,700 | ||
Loans Pledged as Collateral | $ 34,500 | $ 83,700 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.35% | 0.35% | ||
Federal Home Loan Bank Advances [Member] | ||||
Borrowed Funds and Subordinated Notes (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 52,500 | |||
Long-term Line of Credit | 0 | $ 0 | ||
Federal Reserve Bank Advances [Member] | ||||
Borrowed Funds and Subordinated Notes (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 19,100 | |||
Long-term Line of Credit | $ 0 | $ 0 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Benefit Plans (Details) [Line Items] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 503,000 | $ 409,000 |
Matching of Employee's Contribution on the First 1% [Member] | ||
Benefit Plans (Details) [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |
Matching of Employee's Contribution on the First 5% [Member] | ||
Benefit Plans (Details) [Line Items] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0.50 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% |
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 0 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
Federal | $ 4,860 | $ 3,248 |
State | 159 | 30 |
Total current | 5,019 | 3,278 |
Deferred federal | (216) | (281) |
Income tax expense | $ 4,803 | $ 2,997 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
U.S. statutory rate | 21.00% | 21.00% |
Non-deductible stock compensation and various other | 1.00% | 0.50% |
Effective tax rate | 22.00% | 21.50% |
Income tax expense computed at the statutory rate | $ 4,552 | $ 2,917 |
State income tax | 159 | 30 |
Other | 92 | 50 |
Income tax expense, as reported | $ 4,803 | $ 2,997 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for loan losses | $ 872 | $ 618 |
Non-accrual loan interest | 232 | 70 |
Servicing asset valuation allowance | 13 | 13 |
Accrued liabilities | 193 | 68 |
Stock compensation | 102 | 73 |
Paycheck protection program deferred loan fees | 37 | 343 |
Available for sale securities discount accretion | 5 | 10 |
Net unrealized loss on securities available for sale | 87 | 0 |
Total deferred tax assets | 1,541 | 1,195 |
Deferred tax liabilities: | ||
Net deferred loan costs | (471) | (371) |
Depreciation and amortization | (233) | (314) |
Held-to-maturity securities premium | (45) | (57) |
Loan discount | (125) | (93) |
Intangible assets | (262) | (258) |
Net unrealized gain on securities available for sale | 0 | (19) |
Total deferred tax liabilities | (1,136) | (1,112) |
Net deferred tax asset | $ 405 | $ 83 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Compensation Plans (Details) [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 750,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 310,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 40,000 | 210,000 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ 10 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value (in Dollars per share) | $ 6.92 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 190,000 | 190,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 5.37 | $ 5.37 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 7 months 13 days | 6 years 4 months 13 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 1.94 | $ 1.94 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 190,000 | |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount (in Dollars) | $ 160,000 | |
Share-based Payment Arrangement, Expense (in Dollars) | $ 48,000 | $ 79,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | vesting over a three year period from 2023 through 2025 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Restricted Stock [Member] | ||
Stock Compensation Plans (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 210,000 | 210,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 5 months 15 days | 3 years 5 months 15 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 4.81 | |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount (in Dollars) | $ 657,000 | |
Share-based Payment Arrangement, Expense (in Dollars) | $ 282,000 | $ 72,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies (Details) [Line Items] | ||
Security Deposit | $ 250 | $ 250 |
Chief Operating Officer [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Employee Agreement, Term | 4 years | |
Chief Financial Officer [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Employee Agreement, Term | 3 years |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of Line of Credit Facilities - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Loan commitments | $ 33,986 | $ 20,042 |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Undisbursed loan commitments | 33,704 | 19,880 |
Standby Letters of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Loan commitments | $ 282 | $ 162 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cain Watters & Associates [Member] | ||
Related Parties (Details) [Line Items] | ||
Related Party Ownership in Company | 31.00% | |
Accounts Receivable, Related Parties | $ 76 | $ 43 |
Accounts Payable, Related Parties | 225 | 198 |
Cain Watters & Associates [Member] | Techtonic Advisors - CWA Services Agreement [Member] | ||
Related Parties (Details) [Line Items] | ||
Revenue from Related Parties | 919 | 1,800 |
Certain Officers, Directors and their Affiliated Companies [Member] | ||
Related Parties (Details) [Line Items] | ||
Due to Related Parties, Current | $ 9,200 | $ 5,600 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Millions | Dec. 31, 2021USD ($) | Jan. 01, 2019 | Jan. 01, 2015 |
Regulatory Matters (Details) [Line Items] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval (in Dollars) | $ 5 | ||
Basel III Minimum Capital Ratio Requirments [Member] | |||
Regulatory Matters (Details) [Line Items] | |||
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.10 | ||
Banking Regulation, Tier One Risk-Based Capital Ratio, Actual | 0.08 | ||
Banking Regulation, Tier One Leverage Capital Ratio, Actual | 0.05 | ||
Banking Regulation, Tier One Risk-Based Capital Ratio, Excess, Actual | 0.065 | ||
Capital Conservation Buffer | 2.50% |
Regulatory Matters (Details) -
Regulatory Matters (Details) - Schedule of Regulatory Capital Ratio Requirments under Banking Regulations - Basel III Minimum Capital Ratio Requirments [Member] | Dec. 31, 2019 |
Regulatory Matters (Details) - Schedule of Regulatory Capital Ratio Requirments under Banking Regulations [Line Items] | |
Total Risk Based Capital (total capital to risk weighted assets), BASEL III Minimum for Capital Adequacy Requirements | 0.08 |
Total Risk Based Capital (total capital to risk weighted assets), BASEL III Additional Capital Conservation Buffer | 2.50% |
Total Risk Based Capital (total capital to risk weighted assets), BASEL III Ratio with Capital Conservation Buffer | 10.50% |
Tier 1 Risk Based Capital (tier 1 to risk weighted assets), BASEL III Minimum for Capital Adequacy Requirements | 0.06 |
Tier 1 Risk Based Capital (tier 1 to risk weighted assets), BASEL III Additional Capital Conservation Buffer | 2.50% |
Tier 1 Risk Based Capital (tier 1 to risk weighted assets), BASEL III Ratio with Capital Conservation Buffer | 8.50% |
Common Equity Tier 1 Risk Based ( CET1 to risk weighted assets), BASEL III Minimum for Capital Adequacy Requirements | 0.045 |
Common Equity Tier 1 Risk Based ( CET1 to risk weighted assets), BASEL III Additional Capital Conservation Buffer | 2.50% |
Common Equity Tier 1 Risk Based ( CET1 to risk weighted assets), BASEL III Ratio with Capital Conservation Buffer | 7.00% |
Tier 1 Leverage Ratio (tier 1 to average assets), BASEL III Minimum for Capital Adequacy Requirements | 0.04 |
Tier 1 Leverage Ratio (tier 1 to average assets), BASEL III Additional Capital Conservation Buffer | 0.00% |
Tier 1 Leverage Ratio (tier 1 to average assets), BASEL III Ratio with Capital Conservation Buffer | 4.00% |
Regulatory Matters (Details) _2
Regulatory Matters (Details) - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Consolidated Entities [Member] | ||
Total Capital (to Risk Weighted Assets) | ||
Total Capital (to Risk Weighted Assets), Actual, Amount | $ 66,946 | $ 50,987 |
Total Capital (to Risk Weighted Assets), Actual, Ratio | 0.1855 | 0.1822 |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 37,894 | $ 29,379 |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 0.105 | 0.105 |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 36,089 | $ 27,980 |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 0.10 | 0.10 |
Tier 1 Capital (to Risk Weighted Assets) | ||
Tier 1 Capital (to Risk Weighted Assets), Actual, Amount | $ 62,794 | $ 48,046 |
Tier 1 Capital (to Risk Weighted Assets), Actual, Ratio | 17.4 | 17.17 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 30,676 | $ 23,783 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 8.5 | 8.5 |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 28,871 | $ 22,384 |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 8 | 8 |
Common Equity Tier 1 (to Risk Weighted Assets) | ||
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Amount | $ 45,544 | $ 30,796 |
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Ratio | 12.62 | 11.01 |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 25,263 | $ 19,586 |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 7 | 7 |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 23,458 | $ 18,187 |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 6.5 | 6.5 |
Tier 1 Capital (to Average Assets) | ||
Tier 1 Capital (to Average Assets), Actual, Amount | $ 62,794 | $ 48,046 |
Tier 1 Capital (to Average Assets), Actual, Ratio | 11.82 | 11.66 |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Amount | $ 21,245 | $ 16,480 |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Ratio | 4 | 4 |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized,Amount | $ 26,557 | $ 20,601 |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized, Ratio | 5 | 5 |
T. Bank, N. A. [Member] | ||
Total Capital (to Risk Weighted Assets) | ||
Total Capital (to Risk Weighted Assets), Actual, Amount | $ 67,454 | $ 50,012 |
Total Capital (to Risk Weighted Assets), Actual, Ratio | 18.87 | 18.25 |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 37,542 | $ 28,782 |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 10.5 | 10.5 |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 35,754 | $ 27,411 |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 10 | 10 |
Tier 1 Capital (to Risk Weighted Assets) | ||
Tier 1 Capital (to Risk Weighted Assets), Actual, Amount | $ 63,302 | $ 47,071 |
Tier 1 Capital (to Risk Weighted Assets), Actual, Ratio | 17.7 | 17.17 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 30,391 | $ 23,299 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 8.5 | 8.5 |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 28,604 | $ 21,929 |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 8 | 8 |
Common Equity Tier 1 (to Risk Weighted Assets) | ||
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Amount | $ 63,302 | $ 47,071 |
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Ratio | 17.7 | 17.17 |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 25,028 | $ 19,188 |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 7 | 7 |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 23,240 | $ 17,817 |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 6.5 | 6.5 |
Tier 1 Capital (to Average Assets) | ||
Tier 1 Capital (to Average Assets), Actual, Amount | $ 63,302 | $ 47,071 |
Tier 1 Capital (to Average Assets), Actual, Ratio | 12.06 | 11.58 |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Amount | $ 21,002 | $ 16,257 |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Ratio | 4 | 4 |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized,Amount | $ 26,252 | $ 20,322 |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized, Ratio | 5 | 5 |
Operating Segments (Details) -
Operating Segments (Details) - Schedule of Segment Reporting Information, by Segment - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement | ||
Total interest income | $ 29,384 | $ 20,878 |
Total interest expense | 3,627 | 5,269 |
Provision for loan losses | 2,214 | 1,709 |
Net-interest income (loss) after provision for loan losses | 23,543 | 13,900 |
Non-interest income | 36,624 | 33,721 |
Depreciation and amortization expense | 523 | 614 |
All other non-interest expense | 37,807 | 33,085 |
Income (loss) before income tax | 21,837 | 13,922 |
Goodwill and other intangibles | 22,217 | 11,708 |
Total assets | 585,011 | 513,426 |
HoldCo [Member] | ||
Income Statement | ||
Total interest income | 0 | 0 |
Total interest expense | 891 | 875 |
Provision for loan losses | 0 | 0 |
Net-interest income (loss) after provision for loan losses | (891) | (875) |
Non-interest income | 205 | 22 |
Depreciation and amortization expense | 0 | 0 |
All other non-interest expense | 1,629 | 1,065 |
Income (loss) before income tax | (2,315) | (1,918) |
Goodwill and other intangibles | 0 | 0 |
Total assets | 452 | 275 |
Banking [Member] | ||
Income Statement | ||
Total interest income | 29,384 | 20,878 |
Total interest expense | 2,736 | 4,394 |
Provision for loan losses | 2,214 | 1,709 |
Net-interest income (loss) after provision for loan losses | 24,434 | 14,775 |
Non-interest income | 991 | 1,492 |
Depreciation and amortization expense | 379 | 370 |
All other non-interest expense | 11,441 | 7,865 |
Income (loss) before income tax | 13,605 | 8,032 |
Goodwill and other intangibles | 19,867 | 9,358 |
Total assets | 573,726 | 499,580 |
Financial Service, Other [Member] | ||
Income Statement | ||
Total interest income | 0 | 0 |
Total interest expense | 0 | 0 |
Provision for loan losses | 0 | 0 |
Net-interest income (loss) after provision for loan losses | 0 | 0 |
Non-interest income | 35,428 | 32,120 |
Depreciation and amortization expense | 144 | 244 |
All other non-interest expense | 24,737 | 24,068 |
Income (loss) before income tax | 10,547 | 7,808 |
Goodwill and other intangibles | 2,350 | 2,350 |
Total assets | $ 10,833 | $ 13,571 |
Fair Value of Financials Inst_3
Fair Value of Financials Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value of Financials Instruments (Details) [Line Items] | ||
Other Real Estate, Additions | $ 1,079 | $ 0 |
Servicing Asset at Fair Value, Additions | 19 | 152 |
Proceeds from Sale of Loans Held-for-sale | 1,100 | 9,800 |
Servicing Asset at Amortized Cost, Amortization | 326 | 261 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value of Financials Instruments (Details) [Line Items] | ||
Servicing Asset at Amortized Cost, Amortization | 326 | 460 |
Valuation Allowance for Impairment of Recognized Servicing Assets, Period Increase (Decrease) | $ 0 | $ 199 |
Fair Value of Financials Inst_4
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
US Government Agencies Debt Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
U.S. government agencies | $ 15,402 | $ 14,949 |
Collateralized Mortgage Backed Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | 1,754 | 2,447 |
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
U.S. government agencies | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
U.S. government agencies | 15,402 | 14,949 |
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | 1,754 | 2,447 |
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
U.S. government agencies | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | $ 0 | $ 0 |
Fair Value of Financials Inst_5
Fair Value of Financials Instruments (Details) - Fair Value, by Balance Sheet Grouping - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Level 2 inputs: | ||
Securities available for sale, carrying amount | $ 17,156 | $ 17,396 |
Level 3 inputs: | ||
Securities held to maturity, carrying amount | 19,673 | 5,776 |
Securities held to maturity, estimated fair value | 19,673 | |
Securities not readily marketable, carrying amount | 100 | 100 |
Securities not readily marketable, estimated fair value | 100 | 100 |
Loans, net, carrying amount | 424,595 | 397,601 |
Level 1 inputs: | ||
Non-interest bearing deposits, carrying amount | 88,876 | 57,112 |
Non-interest bearing deposits, estimated fair value | 57,112 | |
Level 2 inputs: | ||
Interest bearing deposits, carrying amount | 147,909 | 116,278 |
Fair Value, Inputs, Level 1 [Member] | ||
Level 1 inputs: | ||
Cash and cash equivalents, carrying amount | 45,992 | 46,868 |
Cash and cash equivalents, estimated fair value | 45,992 | 46,868 |
Level 1 inputs: | ||
Non-interest bearing deposits, carrying amount | 88,876 | |
Non-interest bearing deposits, estimated fair value | 88,876 | |
Fair Value, Inputs, Level 2 [Member] | ||
Level 2 inputs: | ||
Securities available for sale, carrying amount | 17,156 | 17,396 |
Securities available for sale, estimated fair value | 17,156 | 17,396 |
Securities, restricted, carrying amount | 2,432 | 2,431 |
Securities, restricted, estimated fair value | 2,432 | 2,431 |
Loans held for sale, carrying amount | 33,762 | 14,864 |
Loans held for sale, estimated fair value | 37,549 | 16,462 |
Accrued interest receivable, carrying amount | 2,268 | 2,440 |
Accrued interest receivable, estimated fair value | 3,787 | 2,440 |
Level 2 inputs: | ||
Interest bearing deposits, carrying amount | 355,293 | 290,903 |
Interest bearing deposits, estimated fair value | 359,606 | 292,174 |
Borrowed funds, carrying amount | 46,521 | 95,690 |
Borrowed funds, estimated fair value | 46,521 | 95,690 |
Accrued interest payable, carrying amount | 561 | 596 |
Accrued interest payable, estimated fair value | 561 | 596 |
Fair Value, Inputs, Level 3 [Member] | ||
Level 3 inputs: | ||
Securities held to maturity, carrying amount | 19,673 | 5,776 |
Securities held to maturity, estimated fair value | 19,673 | 5,776 |
Loans, net, carrying amount | 424,595 | 397,601 |
Loans, net, estimated fair value | 430,810 | 389,143 |
Servicing asset, carrying amount | 503 | 809 |
Servicing asset, estimated fair value | $ 503 | $ 809 |
Integra Acquisition (Details)
Integra Acquisition (Details) - Integra Funding Solutions LLC [Member] | Jul. 01, 2021USD ($)shares |
Integra Acquisition (Details) [Line Items] | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 2,500,000 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | $ 726,721 |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | shares | 453,203 |
Business Combination, Consideration Transferred, Liabilities Incurred | $ 115,726 |
33,442,000 | |
Factored Receivables [Member] | |
Integra Acquisition (Details) [Line Items] | |
34,300,000 | |
Financing Receivable, Unamortized Purchase Premium (Discount) | (397,000) |
Assets, Fair Value Adjustment | $ 492,000 |
Integra Acquisition (Details) -
Integra Acquisition (Details) - Schedule of Business Acquisitions, by Acquisition - Integra Funding Solutions LLC [Member] $ in Thousands | Jul. 01, 2021USD ($) |
Assets acquired: | |
Factored receivables | $ 33,442 |
Other assets | 270 |
Premises and equipment | 24 |
Loans receivable | 1,103 |
34,839 | |
Liabilities assumed: | |
Deposits | 2,535 |
Other liabilities | 253 |
Borrowings | 28,927 |
31,715 | |
Fair value of net assets acquired | 3,124 |
Consideration: | |
Cash paid | 3,185 |
Common stock | 10,650 |
Total consideration | 13,835 |
Goodwill | $ 10,711 |
Integra Acquisition (Details)_2
Integra Acquisition (Details) - Business Acquisition, Pro Forma Information - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Integra Acquisition (Details) - Business Acquisition, Pro Forma Information [Line Items] | ||
Net interest income | $ 23,543 | $ 13,900 |
Noninterest income | 36,624 | 33,721 |
Noninterest expense | 38,330 | 33,699 |
Net income after income taxes | 17,034 | 10,925 |
Integra Funding Solutions LLC [Member] | ||
Integra Acquisition (Details) - Business Acquisition, Pro Forma Information [Line Items] | ||
Net interest income | 2,373 | 2,706 |
Noninterest income | 248 | 401 |
Noninterest expense | 1,377 | 1,652 |
Net income after income taxes | 983 | 1,149 |
Pro Forma [Member] | ||
Integra Acquisition (Details) - Business Acquisition, Pro Forma Information [Line Items] | ||
Net interest income | 25,916 | 16,606 |
Noninterest income | 36,872 | 34,122 |
Noninterest expense | 39,707 | 35,351 |
Net income after income taxes | $ 18,017 | $ 12,074 |
Parent Company Condensed Fina_3
Parent Company Condensed Financial Statements (Details) - Condensed Balance Sheet - Parent Company [Member] - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 3,464 | $ 221 |
Securities, not readily marketable | 100 | 100 |
Investment in subsidiaries | 81,907 | 57,646 |
Other assets | 268 | 2,175 |
Total assets | 85,739 | 60,142 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Other liabilities | 552 | 129 |
Shareholders’ equity | 85,187 | 60,013 |
Total liabilities and shareholders’ equity | $ 85,739 | $ 60,142 |
Parent Company Condensed Fina_4
Parent Company Condensed Financial Statements (Details) - Condensed Income Statement - Parent Company [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||
Income from subsidiaries | $ 18,158 | $ 11,710 |
Other income | 736 | 527 |
Total income | 18,894 | 12,237 |
Non-interest expense: | ||
Salaries and employee benefits | 946 | 682 |
Professional and administrative | 297 | 267 |
Other | 826 | 527 |
Total non-interest expense | 2,069 | 1,476 |
Income before income taxes | 16,825 | 10,761 |
Income tax benefit | 209 | 164 |
Net Income | $ 17,034 | $ 10,925 |
Parent Company Condensed Fina_5
Parent Company Condensed Financial Statements (Details) - Comprehensive Income (Loss) - Parent Company [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Parent Company Condensed Financial Statements (Details) - Comprehensive Income (Loss) [Line Items] | ||
Net Income | $ 17,034 | $ 10,925 |
Other comprehensive (loss) income: | ||
Change in unrealized (loss) gain on investment securities available for sale | (502) | 19 |
Tax effect | (106) | 5 |
Other comprehensive (loss) income | (396) | 14 |
Comprehensive income | $ 16,638 | $ 10,939 |
Parent Company Condensed Fina_6
Parent Company Condensed Financial Statements (Details) - Condensed Cash Flow Statement - Parent Company [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 17,034 | $ 10,925 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Equity in income of subsidiaries | (18,158) | (11,710) |
Stock based compensation | 330 | 151 |
Net change in other assets | 1,907 | (1,703) |
Net change in other liabilities | 422 | 0 |
Net cash provided by (used in) operating activities | 1,535 | (2,337) |
Cash Flows from Investing Activities | ||
Contributions to subsidiaries | (9,310) | 0 |
Distributions from subsidiaries | 13,461 | 2,571 |
Net cash (used in) provided by investing activities | 4,151 | 2,571 |
Cash Flows from Financing Activities | ||
Proceeds from issuance of common shares | 400 | 0 |
Dividends on common shares | (1,291) | 0 |
Net cash used in financing activities | (2,443) | (1,552) |
Net change in cash and cash equivalents | 3,243 | (1,318) |
Cash and cash equivalents at beginning of period | 221 | 1,539 |
Cash and cash equivalents at end of period | 3,464 | 221 |
Supplemental disclosures of cash flow information | ||
Income taxes | 5,427 | 700 |
Series B Preferred Stock [Member] | ||
Cash Flows from Financing Activities | ||
Dividends paid on Series B Preferred Shares | $ (1,552) | $ (1,552) |