Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 13, 2019 | |
Document Information Line Items | ||
Entity Registrant Name | Tectonic Financial, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 6,568,750 | |
Amendment Flag | false | |
Entity Central Index Key | 0001766526 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | true | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 4,703 | $ 4,372 |
Interest-bearing deposits | 11,100 | 13,867 |
Federal funds sold | 523 | 219 |
Total cash and cash equivalents | 16,326 | 18,458 |
Securities available for sale | 9,808 | 11,504 |
Securities held to maturity | 6,357 | 7,722 |
Securities, restricted at cost | 2,409 | 1,926 |
Securities, not readily marketable | 100 | 100 |
Loans held for sale | 12,911 | 16,345 |
Loans, net of allowance for loan losses of $1,539 and $874, respectively | 284,825 | 234,033 |
Bank premises and equipment, net | 5,374 | 5,607 |
Core deposit intangible, net | 1,230 | 1,381 |
Goodwill | 10,729 | 8,379 |
Other assets | 7,596 | 6,207 |
Total assets | 357,665 | 311,662 |
Demand deposits: | ||
Non-interest-bearing | 29,504 | 41,142 |
Interest-bearing | 54,001 | 59,618 |
Time deposits | 189,655 | 149,613 |
Total deposits | 273,160 | 250,373 |
Borrowed funds | 17,000 | 6,915 |
Subordinated notes, net of unamortized issuance costs | 12,000 | 12,000 |
Deferred tax liabilities | 407 | 534 |
Other liabilities | 6,131 | 4,367 |
Total liabilities | 308,698 | 274,189 |
SHAREHOLDERS’ EQUITY | ||
Common stock ($0.01 par value; 40,000,000 shares authorized; 6,568,750 shares issued and outstanding at September 30, 2019 and December 31, 2018) | 66 | 66 |
Additional paid-in capital | 39,024 | 31,485 |
Retained earnings | 9,759 | 6,130 |
Accumulated other comprehensive income (loss) | 101 | (209) |
Total shareholders’ equity | 48,967 | 37,473 |
Total liabilities and shareholders’ equity | 357,665 | 311,662 |
Series A Preferred Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Preferred stock, value | 0 | 1 |
Series B Preferred Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Preferred stock, value | $ 17 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Loans, allowance for loan losses (in Dollars) | $ 1,539 | $ 874 |
Preferred stock, shares outstanding | 80,338 | |
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 | 6,568,750 | 6,568,750 |
Common stock, shares outstanding | 6,568,750 | 6,568,750 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares issued | 80,338 | 80,338 |
Preferred stock, shares outstanding | 80,338 | 80,338 |
Preferred stock, non-cumulative | 10.00% | 10.00% |
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 80,338 | 80,338 |
Series B Preferred Stock [Member] | ||
Preferred stock, shares issued | 1,725,000 | |
Preferred stock, shares outstanding | 1,725,000 | |
Preferred stock, non-cumulative | 9.00% | |
Preferred stock, par value (in Dollars per share) | $ 0.01 | |
Preferred stock, shares authorized | 1,725,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest Income | ||||
Loan, including fees | $ 4,471 | $ 3,616 | $ 12,475 | $ 10,086 |
Securities | 157 | 207 | 571 | 677 |
Federal funds sold | 3 | 2 | 9 | 6 |
Interest-bearing deposits | 55 | 45 | 204 | 123 |
Total interest income | 4,686 | 3,870 | 13,259 | 10,892 |
Interest Expense | ||||
Deposits | 1,324 | 823 | 3,668 | 2,139 |
Borrowed funds | 325 | 332 | 899 | 916 |
Total interest expense | 1,649 | 1,155 | 4,567 | 3,055 |
Net interest income | 3,037 | 2,715 | 8,692 | 7,837 |
Provision for loan losses | 1,004 | 322 | 1,486 | 643 |
Net interest income after provision for loan losses | 2,033 | 2,393 | 7,206 | 7,194 |
Non-interest Income | ||||
Trust income | 1,286 | 1,183 | 3,716 | 3,513 |
Advisory income | 2,728 | 2,236 | 7,396 | 6,275 |
Brokerage income | 2,820 | 1,939 | 7,776 | 6,253 |
Service fees and other income | 898 | 302 | 3,632 | 2,308 |
Rental income | 85 | 81 | 249 | 223 |
Total non-interest income | 7,817 | 5,741 | 22,769 | 18,572 |
Non-interest Expense | ||||
Salaries and employee benefits | 4,858 | 3,360 | 14,109 | 10,304 |
Occupancy and equipment | 684 | 478 | 1,934 | 1,465 |
Trust expenses | 506 | 496 | 1,482 | 1,485 |
Brokerage and advisory direct costs | 448 | 333 | 1,318 | 1,123 |
Professional fees | 429 | 293 | 1,292 | 661 |
Data processing | 217 | 223 | 666 | 733 |
Other | 921 | 632 | 2,230 | 1,861 |
Total non-interest expense | 8,063 | 5,815 | 23,031 | 17,632 |
Income before Income Taxes | 1,787 | 2,319 | 6,944 | 8,134 |
Income tax expense | 446 | 279 | 1,217 | 655 |
Net Income | 1,341 | 2,040 | 5,727 | 7,479 |
Preferred stock dividends | 393 | 201 | 798 | 603 |
Net income available to common stockholders | $ 948 | $ 1,839 | $ 4,929 | $ 6,876 |
Earnings per common share: | ||||
Basic (in Dollars per share) | $ 0.14 | $ 0.28 | $ 0.75 | $ 1.05 |
Diluted (in Dollars per share) | $ 0.14 | $ 0.28 | $ 0.75 | $ 1.05 |
Weighted average common shares outstanding (in Shares) | 6,568,750 | 6,568,750 | 6,568,750 | 6,563,429 |
Weighted average diluted shares outstanding (in Shares) | 6,568,750 | 6,568,750 | 6,568,750 | 6,563,429 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Income | $ 1,341 | $ 2,040 | $ 5,727 | $ 7,479 |
Other comprehensive income (loss): | ||||
Change in unrealized gain (loss) on investment securities available for sale | 56 | (49) | 393 | (314) |
Tax effect | 11 | (10) | 83 | (66) |
Other comprehensive income (loss) | 45 | (39) | 310 | (248) |
Comprehensive Income | $ 1,386 | $ 2,001 | $ 6,037 | $ 7,231 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member]Series A Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member]Series A Preferred Stock [Member] | Retained Earnings [Member]Series B Preferred Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Preferred Stock [Member]Series A Preferred Stock [Member] | Preferred Stock [Member]Series B Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Total |
Issuance of non-cumulative perpetual preferred stock | $ 8,033 | $ 1 | $ 8,034 | |||||||||
Net effect of Tectonic Merger | 28 | $ (2,241) | (2,213) | |||||||||
Balance at Dec. 31, 2017 | $ 65 | 23,074 | 1,903 | $ (58) | 24,984 | |||||||
Balance at Jan. 01, 2018 | 65 | 31,135 | (338) | (58) | 1 | 30,805 | ||||||
Balance at Dec. 31, 2017 | 65 | 23,074 | 1,903 | (58) | 24,984 | |||||||
Issuance of shares of common stock | 1 | 249 | 250 | |||||||||
Contributions prior to Tectonic Merger | 250 | 250 | ||||||||||
Distributions prior to Tectonic Merger | (650) | (650) | ||||||||||
Dividends paid on preferred stock | $ (201) | $ (201) | ||||||||||
Net income | 3,527 | 3,527 | ||||||||||
Other comprehensive (loss) income | (152) | (152) | ||||||||||
Stock based compensation | 23 | 23 | ||||||||||
Balance at Mar. 31, 2018 | 66 | 31,407 | 2,588 | (210) | 1 | 33,852 | ||||||
Balance at Dec. 31, 2017 | 65 | 23,074 | 1,903 | (58) | 24,984 | |||||||
Contributions prior to Tectonic Merger | 250 | |||||||||||
Distributions prior to Tectonic Merger | (1,950) | |||||||||||
Dividends paid on preferred stock | (603) | |||||||||||
Net income | 7,479 | |||||||||||
Other comprehensive (loss) income | (248) | |||||||||||
Balance at Sep. 30, 2018 | 66 | 31,461 | 4,838 | (306) | 1 | 36,060 | ||||||
Balance at Mar. 31, 2018 | 66 | 31,407 | 2,588 | (210) | 1 | 33,852 | ||||||
Distributions prior to Tectonic Merger | (650) | (650) | ||||||||||
Dividends paid on preferred stock | (201) | (201) | ||||||||||
Net income | 1,912 | 1,912 | ||||||||||
Other comprehensive (loss) income | (57) | (57) | ||||||||||
Stock based compensation | 30 | 30 | ||||||||||
Balance at Jun. 30, 2018 | 66 | 31,437 | 3,649 | (267) | 1 | 34,886 | ||||||
Distributions prior to Tectonic Merger | (650) | (650) | ||||||||||
Dividends paid on preferred stock | (201) | (201) | ||||||||||
Net income | 2,040 | 2,040 | ||||||||||
Other comprehensive (loss) income | (39) | (39) | ||||||||||
Stock based compensation | 24 | 24 | ||||||||||
Balance at Sep. 30, 2018 | 66 | 31,461 | 4,838 | (306) | 1 | 36,060 | ||||||
Issuance of non-cumulative perpetual preferred stock | 8,033 | 1 | 8,034 | |||||||||
Net effect of Tectonic Merger | 72 | 739 | 811 | |||||||||
Balance at Dec. 31, 2018 | 66 | 31,485 | 6,130 | (209) | 1 | 37,473 | ||||||
Balance at Jan. 01, 2019 | 66 | 23,380 | 5,391 | (209) | 28,628 | |||||||
Balance at Dec. 31, 2018 | 66 | 31,485 | 6,130 | (209) | 1 | 37,473 | ||||||
Distributions prior to Tectonic Merger | (650) | (650) | ||||||||||
Dividends paid on preferred stock | $ (201) | $ (201) | ||||||||||
Net income | 2,194 | 2,194 | ||||||||||
Other comprehensive (loss) income | 155 | 155 | ||||||||||
Stock based compensation | 24 | 24 | ||||||||||
Balance at Mar. 31, 2019 | 66 | 31,509 | 7,473 | (54) | 1 | 38,995 | ||||||
Balance at Dec. 31, 2018 | 66 | 31,485 | 6,130 | (209) | 1 | 37,473 | ||||||
Contributions prior to Tectonic Merger | 0 | |||||||||||
Distributions prior to Tectonic Merger | (1,300) | |||||||||||
Dividends paid on preferred stock | (798) | |||||||||||
Net income | 5,727 | |||||||||||
Other comprehensive (loss) income | 310 | |||||||||||
Balance at Sep. 30, 2019 | 66 | 39,024 | 9,759 | 101 | $ 17 | 48,967 | ||||||
Issuance of non-cumulative perpetual preferred stock | 15,489 | 17 | 15,506 | |||||||||
Balance at Mar. 31, 2019 | 66 | 31,509 | 7,473 | (54) | 1 | 38,995 | ||||||
Distributions prior to Tectonic Merger | (650) | (650) | ||||||||||
Dividends paid on preferred stock | (204) | (204) | ||||||||||
Net income | 2,192 | 2,192 | ||||||||||
Other comprehensive (loss) income | 110 | 110 | ||||||||||
Stock based compensation | 34 | 34 | ||||||||||
Balance at Jun. 30, 2019 | 66 | 47,032 | 8,811 | 56 | 1 | 17 | 55,983 | |||||
Repurchase of Series A preferred stock | $ (8,033) | $ (1) | (8,034) | |||||||||
Dividends paid on preferred stock | $ (1) | $ (392) | $ (1) | $ (392) | (393) | |||||||
Net income | 1,341 | 1,341 | ||||||||||
Other comprehensive (loss) income | 45 | 45 | ||||||||||
Stock based compensation | 25 | 25 | ||||||||||
Balance at Sep. 30, 2019 | $ 66 | $ 39,024 | $ 9,759 | $ 101 | $ 17 | $ 48,967 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parentheticals) | 3 Months Ended |
Mar. 31, 2018shares | |
Issuance of shares of common stock | 51,250 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities | ||
Net income | $ 5,727 | $ 7,479 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Provision for loan losses | 1,486 | 643 |
Depreciation and amortization | 524 | 450 |
Accretion of discount on loans | (15) | (8) |
Core deposit intangible amortization | 151 | 151 |
Securities premium amortization, net | 104 | 59 |
Origination of loans held for sale | (24,340) | (15,914) |
Proceeds from payments and sales of loans held for sale | 258 | 4,230 |
Gain on sale of loans | 0 | (183) |
Lease right-of-use-asset obtained in exchange for lease liabilities | 207 | 0 |
Stock based compensation | 83 | 77 |
Deferred income taxes | (209) | (182) |
Servicing asset amortization | 593 | 699 |
Net change in: | ||
Other assets | (886) | (857) |
Other liabilities | 199 | (303) |
Net cash used in operating activities | (16,118) | (3,659) |
Cash Flows from Investing Activities | ||
Acquisition of business | (2,500) | 0 |
Purchase of securities available for sale | (226,964) | (199,990) |
Principal payments, calls and maturities of securities available for sale | 229,035 | 200,666 |
Principal payments of securities held to maturity | 1,280 | 1,676 |
Purchase of securities, restricted | (8,375) | (7,970) |
Proceeds from sale of securities, restricted | 7,892 | 7,813 |
Proceeds from sales of real estate owned | 275 | 0 |
Net change in loans | (25,024) | (12,249) |
Purchases of premises and equipment | (141) | (53) |
Net cash used in investing activities | (24,522) | (10,107) |
Cash Flows from Financing Activities | ||
Net change in demand deposits | (17,255) | (2,505) |
Net change in time deposits | 40,042 | 18,431 |
Proceeds from borrowed funds | 355,559 | 463,685 |
Repayment of borrowed funds | (345,474) | (465,733) |
Contributions from Tectonic Holdings members prior to Tectonic Merger | 0 | 250 |
Distributions to Tectonic Holdings members prior to Tectonic Merger | (1,300) | (1,950) |
Proceeds from issuance of common stock | 0 | 250 |
Proceeds from issuance of preferred shares | 15,506 | 0 |
Dividends paid on Series A preferred shares | (406) | (603) |
Dividends paid on Series B preferred shares | (392) | 0 |
Purchase of Series A preferred stock | (7,772) | 0 |
Net cash provided by financing activities | 38,508 | 11,825 |
Net change in cash and cash equivalents | (2,132) | (1,941) |
Cash and cash equivalents at beginning of period | 18,458 | 18,646 |
Cash and cash equivalents at end of period | 16,326 | 16,705 |
Non Cash Transactions | ||
Transfers from loans to other real estate owned | 275 | 0 |
Lease liabilities incurred in exchange for right-of-use assets | 207 | 0 |
Prepaid amounts applied toward purchase of Series A preferred stock | (262) | 0 |
Cash paid during the period for | ||
Interest | 4,748 | 2,962 |
Income taxes | $ 1,690 | $ 480 |
Note 1. Organization and Signif
Note 1. Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note 1. Organization and Significant Accounting Policies 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, third-party administration, recordkeeping and insurance services to individuals, small businesses and institutions in all 50 states. The Company was formed in October 2016 for the purpose of acquiring T Bancshares, Inc. (“TBI”), which acquisition was completed on May 15, 2017. On May 13, 2019, we completed a merger with Tectonic Holdings, LLC (“Tectonic Holdings”), through which we expanded our financial services to include investment advisory, securities brokerage and insurance services (the “Tectonic Merger”). Pursuant to the Amended and Restated Agreement and Plan of Merger, dated March 28, 2019, by and between the Company and Tectonic Holdings (the “Tectonic Merger Agreement”), Tectonic Holdings merged with and into the Company, with the Company as the surviving institution. Immediately after the completion of the Tectonic Merger, the Company completed a 1-for-2 reverse stock split with respect to the outstanding shares of its common stock. Following the Tectonic Merger, we operate through four main direct and indirect subsidiaries: (i) TBI, 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, 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, 59 th 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 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 In January 2019, the Bank acquired The Nolan Company (“Nolan”), a third-party administrator (“TPA”), based in Overland Park, Kansas. Founded in 1979, Nolan provides clients with retirement plan design and administrative services, specializing in ministerial recordkeeping, administration, actuarial and design services for retirement plans of small businesses and professional practices. Nolan has clients in 50 states and is the administrator for over 800 retirement plans, 551 of which are also clients of the Bank, which is over 54% of the retirement plans we service in our trust department. We believe that the addition of TPA services allows us to serve our clients more fully and to attract new clients to our trust platform. Please see Note 18, Nolan Acquisition, The Company consummated the underwritten initial public offering of its 9.00% Fixed-to-Float Rate Series B Non-Cumulative Perpetual Preferred Stock (“Series B preferred stock”) in May 2019 (the “initial public offering”). In connection with the initial public offering, the Company issued and sold 1,725,000 shares of its Series B preferred stock, including 225,000 shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares, at an offering price of $10.00 per share, for aggregate gross proceeds of $17.25 million before deducting underwriting discounts and offering expenses, and aggregate net proceeds of $15.5 million. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued and determined that there were no material subsequent events requiring recognition or disclosure. Basis of Presentation Transactions Between Entities Under Common Control. Tectonic Merger and Initial Public Offering of Series B Preferred Stock The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q adopted by the SEC. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our consolidated financial statements, and notes thereto, for the year ended December 31, 2018 in the audited financial statements included within our Registration Statement on Form S-1, as amended (File No 333-230949), initially filed with the SEC on April 18, 2019 (“IPO Registration Statement”). In the opinion of management, all adjustments that were normal and recurring in nature, and considered necessary, have been included for fair presentation of the Company’s financial position and results of operations. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of results that may be expected for the full year ending December 31, 2019. Revenue Recognition. 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: Use of Estimates. Accounting Changes, Reclassifications and Restatements. Leases Leases (Topic 842) Leases Earnings per Share Three months ended September 30 Nine months ended September 30 (In thousands, except per share data) 2019 2018 2019 2018 Net income available to common shareholders $ 948 $ 1,839 $ 4,929 $ 6,876 Average shares outstanding 6,569 6,569 6,569 6,563 Effect of common stock-based compensation - - - - Average diluted shares outstanding 6,569 6,569 6,569 6,563 Basic earnings per share $ 0.14 $ 0.28 $ 0.75 $ 1.05 Diluted earnings per share $ 0.14 $ 0.28 $ 0.75 $ 1.05 As of September 30, 2019, options to purchase 190,000 shares of common stock, with a weighted average exercise price of $5.37, were excluded from the computation of diluted net earnings per share because their effect was anti-dilutive. |
Note 2. Tectonic Merger and Ini
Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock Merger with Tectonic Holdings On May 13, 2019, the Company completed the Tectonic Merger pursuant to the Tectonic Merger Agreement. In the Tectonic Merger, each common unit of Tectonic Holdings outstanding immediately prior to the effective time of the Tectonic Merger was converted into one share of Company common stock, and each option to purchase one Tectonic Holdings common unit was converted into an option to purchase one share of Company common stock. Immediately after the completion of the Tectonic Merger, the Company completed a 1-for-2 reverse stock split, which left 6,568,750 common shares issued and outstanding as of May 14, 2019. The computation of all share and per share amounts in this Form 10-Q have been adjusted retroactively to reflect the reverse stock split. As a condition precedent to the Tectonic Merger, immediately prior to the merger, approximately $8.0 million of Tectonic Advisors subordinated debt held by Dental Community Financial Holdings, Ltd. (“DCFH”), an entity that has as its general partner a corporation owned by one of the directors of the Company, was converted into 80,338 non-cumulative, perpetual preferred units of Tectonic Holdings (“Tectonic Holdings preferred units”). In the Tectonic Merger, each Tectonic Holdings preferred unit was converted into one share of 10.0% Series A Non-Cumulative Perpetual Preferred Stock of the Company (“Series A preferred stock”). The Series A preferred stock ranks senior to our common stock and pari passu On July 12, 2019, the Company repurchased 80,338 shares of its Series A preferred stock, representing all of the outstanding shares of the Series A preferred stock, from DCFH for an aggregate purchase price of approximately $8.0 million. The repurchase was funded using a portion of the net proceeds from the initial public offering. The Tectonic Merger has been accounted for as a combination of businesses under common control in accordance with Topic 805 . The balances shown below represent the assets and liabilities of Tectonic Holdings as of the date of the Tectonic Merger, May 13, 2019, that are reflected on the consolidated financial statements of the Company: (In thousands) May 13, 2019 Assets Cash and cash equivalents $ 5,601 Securities, not readily marketable, at cost 100 Premises and equipment, net 761 Other assets 5,369 Total assets 11,831 Liabilities Other liabilities 2,942 Total liabilities 2,942 Shareholders’ Equity Preferred stock, 10.0% Series A non-cumulative, perpetual ($0.01 par value; 80,338 shares authorized, 80,338 shares issued and outstanding at May 14, 2019) 1 Additional paid-in capital 8,033 Retained earnings 855 Total shareholders’ equity 8,889 Total liabilities and shareholders’ equity $ 11,831 Initial Public Offering On May 14, 2019, the Company completed its initial public offering of 1,500,000 shares of its Series B preferred stock at a price to the public of $10.00 per share. On May 29, 2019, the underwriters exercised their option to purchase 225,000 additional shares of Series B preferred stock at the initial offering price (less underwriting discounts). The initial public offering resulted in net proceeds to the Company of approximately $15.5 million, net of underwriting discounts and fees. The Series B preferred stock began trading on the NASDAQ Capital Market on May 28, 2019 under the symbol “TECTP.” See our IPO Registration Statement, initially filed with the SEC on April 18, 2019. |
Note 3. Securities
Note 3. Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 3. Securities A summary of amortized cost and cost and fair value of securities is presented below. September 30, 2019 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 7,700 $ 109 $ 3 $ 7,806 Mortgage-backed securities 1,980 22 - 2,002 Total securities available for sale $ 9,680 $ 131 $ 3 $ 9,808 Securities held to maturity Property assessed clean energy $ 6,357 $ - $ - $ 6,357 Securities, restricted: Other $ 2,409 $ - $ - $ 2,409 Securities not readily marketable $ 100 $ - $ - $ 100 December 31, 2018 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 9,233 $ 1 $ 226 $ 9,008 Mortgage-backed securities 2,536 4 44 2,496 Total securities available for sale $ 11,769 $ 5 $ 270 $ 11,504 Securities held to maturity Property assessed clean energy $ 7,722 $ - $ - $ 7,722 Securities, restricted: Other $ 1,926 $ - $ - $ 1,926 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 consists of Property Assessed Clean Energy investments. These investment contracts or bonds located in California and Florida, originate under a contractual obligation between the property owners, the local county administration, and a third-party administrator and sponsor. The assessments are created to fund the purchase and installation of energy saving improvements to the property such as solar panels. Generally, as a property assessment, the total assessment is repaid in installments over a period of 10 to 15 years by the then current property owner(s). Each installment is collected by the County 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 September 30, 2019 and December 31, 2018, securities available for sale with a fair value of $8.9 million and $9.8 million, respectively, were pledged to secure borrowings at the FHLB, and securities available for sale with a fair value of $954,000 and $1.7 million, respectively, were pledged against trust deposit balances held at the Bank. As of September 30, 2019 and December 31, 2018, the Bank held FRB stock in the amount of $1.2 million and $980,450, respectively and FHLB stock in the amounts of $1.2 million and $945,900, respectively, all of which was classified as restricted securities. As of September 30, 2019 and December 31, 2018, the Company held an income interest in a private investment, which is not readily marketable, accounted for under the cost method in the amount of $100,000. The table below indicates the length of time individual investment securities have been in a continuous loss position as of September 30, 2019: Less than 12 months 12 months or longer Total (In thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ 407 $ 1 $ 598 $ 2 $ 1,005 $ 3 The number of investment positions in this unrealized loss position totaled two as of September 30, 2019. 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 September 30, 2019, 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 interest rates as of September 30, 2019, 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 September 30, 2019 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 after one year through five years $ 4,366 $ 4,375 $ - $ - Due after five years through ten years 2,996 3,075 3,497 3,497 Due after ten years 338 356 2,860 2,860 Mortgage-backed securities 1,980 2,002 - - Total $ 9,680 $ 9,808 $ 6,357 $ 6,357 |
Note 4. Loans and Allowance for
Note 4. Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. Loans and Allowance for Loan Losses Major classifications of loans held for investment are as follows: (In thousands) September 30, 2019 December 31, 2018 Commercial and industrial $ 89,963 $ 88,915 Consumer installment 3,402 3,636 Real estate – residential 5,265 7,488 Real estate – commercial 49,185 35,221 Real estate – construction and land 7,642 4,653 SBA: SBA 7(a) guaranteed 63,865 33,884 SBA 7(a) unguaranteed 44,373 44,326 SBA 504 20,227 13,400 USDA 2,440 3,367 Other 2 17 Gross Loans 286,364 234,907 Less: Allowance for loan losses 1,539 874 Net loans $ 284,825 $ 234,033 As of September 30, 2019, our loan portfolio included $73.6 million of loans, approximately 25.7% of our total funded loans, to the dental industry. 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 $12.9 million and $16.3 million of SBA loans held for sale as of September 30, 2019 and December 31, 2018, respectively. During the three and nine months ended September 30, 2019, the Company did not sell any SBA loans. The Company elected to reclassify $14.8 million and $27.5 million, respectively, of the SBA 7(a) loans held for sale to loans held for investment during the three and nine months ended September 30, 2019. 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% 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. 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. Non-accrual loans, segregated by class of loans, were as follows: (In thousands) September 30, 2019 December 31, 2018 Non-accrual loans: SBA guaranteed 5,628 2,252 SBA unguaranteed 1,269 293 Total $ 6,897 $ 2,545 The restructuring of a loan is considered a “troubled debt restructuring” if due to the borrower’s financial difficulties, the Company has granted a concession that the Company would not otherwise consider. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of the two. Modification of loan terms may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules, reductions in collateral and other actions intended to minimize potential losses. As of September 30, 2019 and December 31, 2018, there were no loans identified as troubled debt restructurings. There were no new troubled debt restructurings during the three and nine months ended September 30, 2019 and the year ended December 31, 2018. Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. 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 September 30, 2019 Nine Months Ended Commercial and industrial $ - $ - $ - $ - $ - $ 75 $ - SBA 7,504 3,079 3,818 6,897 230 3,263 - Total $ 7,504 $ 3,079 $ 3,818 $ 6,897 $ 230 $ 3,338 $ - December 31, 2018 Year Ended SBA $ 3,003 $ 2,545 $ - $ 2,545 $ - $ 2,371 $ - Total $ 3,003 $ 2,545 $ - $ 2,545 $ - $ 2,371 $ - 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: (In thousands) 30-89 Days Past Due 90 Days or More Past Due Total Past Due Total Current Total Loans Total 90 Days Past Due Still Accruing September 30, 2019 Commercial and industrial $ - $ - $ - $ 89,963 $ 89,963 $ - Consumer installment - - - 3,402 3,402 - Real estate – residential - - - 5,265 5,265 - Real estate – commercial 150 - 150 49,035 49,185 - Real estate – construction and land - - - 7,642 7,642 - SBA 3,818 3,079 6,897 121,568 128,465 - USDA - - - 2,440 2,440 - Other - - - 2 2 - Total $ 3,968 $ 3,079 $ 7,047 $ 279,317 $ 286,364 $ - December 31, 2018 Commercial and industrial $ 614 $ - $ 614 $ 88,301 $ 88,915 $ - Consumer installment - - - 3,636 3,636 - Real estate – residential - - - 7,488 7,488 - Real estate – commercial - - - 35,221 35,221 - Real estate – construction and land - - - 4,653 4,653 - SBA 1,431 1,114 2,545 89,065 91,610 - USDA - - - 3,367 3,367 - Other - - - 17 17 - Total $ 2,045 $ 1,114 $ 3,159 $ 231,748 $ 234,907 $ - 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: (In thousands) Pass Pass- Watch Special Mention Substandard Doubtful Total September 30, 2019 Commercial and industrial $ 89,352 $ 611 $ - $ - $ - $ 89,963 Consumer installment 3,402 - - - - 3,402 Real estate – residential 5,265 - - - - 5,265 Real estate – commercial 49,185 - - - - 49,185 Real estate – construction and land 7,642 - - - - 7,642 SBA 116,928 9,400 868 1,039 230 128,465 USDA 2,440 - - - - 2,440 Other 2 - - - - 2 Total $ 274,216 $ 10,011 $ 868 $ 1,039 $ 230 $ 286,364 December 31, 2018 Commercial and industrial $ 88,879 $ - $ - $ 36 $ - $ 88,915 Consumer installment 3,636 - - - - 3,636 Real estate – residential 7,488 - - - - 7,488 Real estate – commercial 35,221 - - - - 35,221 Real estate – construction and land 4,653 - - - - 4,653 SBA 84,192 7,125 - 293 - 91,610 USDA 3,367 - - - - 3,367 Other 17 - - - - 17 Total $ 227,453 $ 7,125 $ - $ 329 $ - $ 234,907 The activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2019 and 2018 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 Other Total Three months ended: September 30, 2019 Beginning Balance $ 464 $ 26 $ 28 $ 268 $ 54 $ 267 $ - $ - $ 1,107 Provision for loan losses 29 2 (6 ) 109 22 848 - - 1,004 Charge-offs - - - - - (576 ) - - (576 ) Recoveries - - - - - 4 - - 4 Net charge-offs - - - - - (572 ) - - (572 ) Ending balance $ 493 $ 28 $ 22 $ 377 $ 76 $ 543 $ - $ - $ 1,539 September 30, 2018 Beginning Balance $ 319 $ 29 $ 23 $ 137 $ 27 $ 108 $ - $ - $ 643 Provision for loan losses 69 (6 ) 3 44 7 205 - - 322 Charge-offs - - - - - (189 ) - - (189 ) Recoveries - - - - - 1 - - 1 Net recoveries - - - - - (188 ) - - (188 ) Ending balance $ 388 $ 23 $ 26 $ 181 $ 34 $ 125 $ - $ - $ 777 (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Other Total Nine months ended: September 30, 2019 Beginning Balance $ 419 $ 27 $ 27 $ 210 $ 34 $ 157 $ - $ - $ 874 Provision for loan losses 74 1 (5 ) 167 42 1,207 - - 1,486 Charge-offs - - - - - (841 ) - - (841 ) Recoveries - - - - - 20 - - 20 Net charge-offs - - - - - (821 ) - - (821 ) Ending balance $ 493 $ 28 $ 22 $ 377 $ 76 $ 543 $ - $ - $ 1,539 September 30, 2018 Beginning Balance $ 237 $ 13 $ 16 $ 25 $ 27 $ 68 $ - $ - $ 386 Provision for loan losses 151 11 10 156 6 309 - - 643 Charge-offs - - - - - (266 ) - - (266 ) Recoveries - - - - - 14 - - 14 Net recoveries - - - - - (252 ) - - (252 ) Ending balance $ 388 24 $ 26 $ 181 $ 33 $ 125 $ - $ - $ 777 The Company’s allowance for loan losses as of September 30, 2019 and December 31, 2018 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 Other Total September 30, 2019 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 230 $ - $ - $ 230 Loans collectively evaluated for impairment 493 28 22 377 76 313 - - 1,309 Ending balance $ 493 $ 28 $ 22 $ 377 $ 76 $ 543 $ - $ - $ 1,539 December 31, 2018 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 419 27 27 210 34 157 - - 874 Ending balance $ 419 $ 27 $ 27 $ 210 $ 34 $ 157 $ - $ - $ 874 The Company’s recorded investment in loans as of September 30, 2019 and December 31, 2018 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 Other Total September 30, 2019 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 6,897 $ - $ - $ 6,897 Loans collectively evaluated for impairment 89,963 3,402 5,265 49,185 7,642 121,568 2,440 2 279,467 Ending balance $ 89,963 $ 3,402 $ 5,265 $ 49,185 $ 7,642 $ 128,465 $ 2,440 $ 2 $ 286,364 December 31, 2018 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 2,545 $ - $ - $ 2,545 Loans collectively evaluated for impairment 88,915 3,636 7,488 35,221 4,653 89,065 3,367 17 232,362 Ending balance $ 88,915 $ 3,636 $ 7,488 $ 35,221 $ 4,653 $ 91,610 $ 3,367 $ 17 $ 234,907 |
Note 5. Leases
Note 5. Leases | 9 Months Ended |
Sep. 30, 2019 | |
ASU 2016-02 Transition [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | Note 5. Leases 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 2020 and 2024 with initial non-cancellable terms in excess of one year. On January 1, 2019, we adopted a new accounting standard which required the recognition of our operating leases on our balance sheet, under right-of-use assets and corresponding lease liabilities. See Note 1, Organization and Significant Accounting Policies, As of September 30, 2019, the minimum rental commitments under these noncancelable operating leases are as follows (in thousands): 2019 $ 197 2020 776 2021 429 2022 174 2023 and thereafter 97 Total minimum rental payments 1,673 Less: Minimum sublease rentals (32 ) Net minimum rental payments 1,641 Less: Interest (76 ) Present value of lease liabilities $ 1,565 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 September 30, 2019 were $1.2 million through 2027. |
Note 6. Goodwill and Core Depos
Note 6. Goodwill and Core Deposit Intangible | 9 Months Ended |
Sep. 30, 2019 | |
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) September 30, 2019 December 31, 2018 Goodwill $ 10,729 $ 8,379 Core deposit intangible 1,230 1,381 The Company recorded goodwill of $2.4 million during the first quarter of 2019 in connection with the acquisition of the assets of Nolan. Please see Note 18, Nolan 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 $50,000 for the three months ended September 30, 2019 and 2018, and $151,000 for the nine months ended September 30, 2019 and 2018. The carrying basis and accumulated amortization of the core deposit intangible as of September 30, 2019 and December 31, 2018 were as follows: (In thousands) September 30, 2019 December 31, 2018 Gross carrying basis $ 1,708 $ 1,708 Accumulated amortization (478 ) (327 ) Net carrying amount $ 1,230 $ 1,381 The estimated amortization expense of the core deposit intangible for each of the following five years is as follows: (In thousands) Remainder 2019 $ 50 2020 201 2021 201 2022 208 2023 210 Thereafter 360 Total $ 1,230 |
Note 7. Deposits
Note 7. Deposits | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | Note 7. Deposits Time deposits of $250,000 and over totaled $39.6 million and $31.6 million as of September 30, 2019 and December 31, 2018, respectively. Deposits were as follows : (In thousands) September 30, 2019 December 31, 2018 Non-interest bearing demand $ 29,504 11 % $ 41,142 16 % Interest-bearing demand (NOW) 3,110 1 3,242 1 Money market accounts 46,668 17 51,815 21 Savings accounts 4,223 2 4,561 2 Time deposits $100,000 and over 183,513 67 144,177 58 Time deposits under $100,000 6,142 2 5,436 2 Total $ 273,160 100 % $ 250,373 100 % As of September 30, 2019 the scheduled maturities of time deposits were as follows: (In thousands) 2019 $ 34,964 2020 113,501 2021 24,395 2022 10,820 2023 119 2024 5,856 Total $ 189,655 The aggregate amount of demand deposit overdrafts that have been reclassified as loans as of September 30, 2019 and December 31, 2018 was insignificant. |
Note 8. Borrowed Funds and Subo
Note 8. Borrowed Funds and Subordinated Notes | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 8. Borrowed Funds and Subordinated Notes The Company’s FHLB borrowed funds were $17.0 million and $5.0 million as of September 30, 2019 and December 31, 2018, respectively. The Company has a blanket lien credit line with the FHLB with borrowing capacity of $29.6 million secured by commercial loans and securities with collateral values of $23.3 million and $6.3 million, respectively. The Company determines its borrowing needs and utilizes overnight advance accordingly at varying terms. At September 30, 2019, the Company had an overnight advance of $7.0 million with an interest rate of 2.15%. The Company also had a $10.0 million six-month fixed term advance with an interest rate of 2.18% and maturity date of January 27, 2020. The Company also has a credit line with the FRB with borrowing capacity of $35.8 million, which is secured by commercial loans. The Company had no borrowings from the FRB at September 30, 2019 and December 31, 2018. As of December 31, 2018, the Company had a $1.9 million bank stock loan with a variable interest rate of prime plus 0.75% and maturity date of May 11, 2028. Principal and interest payments are due quarterly. The Company paid off the loan on May 31, 2019. As of September 30, 2019 and December 31, 2018, the Company also 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. |
Note 9. Benefit Plans
Note 9. Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [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 the 401(k) plan covering the Bank’s employees, an employee may contribute up to 6% of his or her annual compensation with the Company matching 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. Under the safe harbor provision of the 401(k) plan adopted by both Sanders Morris and Tectonic Advisors, the relevant employer is required to contribute 3% of eligible wages to the plan, up to the maximum amount under Internal Revenue Service (“IRS”) guidance, regardless of the level of the employee’s contributions. An eligible employee may contribute up to the annual maximum contribution allowed for a given year under IRS guidance. At its discretion, the Company may also make additional annual contributions to the plan. Any discretionary contributions are allocated to employees in the proportion of employee contributions to the total contributions of all participants in the plan. No discretionary contributions were made during the nine months ended September 30, 2019 and 2018. Through November 30, 2018, contributions to the plan were invested as directed by the Trustees of the Plan. Effective December 1, 2018, the Plan was converted from a trustee directed plan to participant direction. Subsequent to this date, 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 $94,000 and $268,000 for the three and nine months ended September 30, 2019, respectively, and $65,000 and $240,000 for the three and nine months ended September 30, 2018, respectively, and is included in salaries and employee benefits on the consolidated statements of income. As of September 30, 2019 and December 31, 2018, $11,000 and $71,000, respectively, was accrued as payable to the plan adopted by both Sanders Morris and Tectonic Advisors, and is included in other liabilities on our consolidated balance sheets. There was no accrual payable to the plan covering the Bank’s employees as of September 30, 2019 or December 31, 2018. |
Note 10. Income Taxes
Note 10. Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 10. Income Taxes Income tax expense was $446,000 and $1.2 million for the three and nine months ended September 30, 2019, respectively, and $279,000 and $655,000 for the three and nine months ended September 30, 2018, respectively. The Company’s effective income tax rate was 25.0% and 17.5% for the three and nine months ended September 30, 2019, respectively, compared to 12.0% and 8.0% for the same periods in the prior year, respectively. The effective income tax rate differed from the U.S. statutory rate of 21% due to Tectonic Advisor’s and Sanders Morris tax status as a partnership for the periods prior to May 13, 2019, the date the Tectonic Merger was completed. Net deferred tax liabilities totaled $407,000 and $534,000 at September 30, 2019 and December 31, 2018, respectively. The Company files U.S. federal and state income tax returns. |
Note 11. Stock Compensation Pla
Note 11. Stock Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | Note 11. Stock Compensation Plans The board of directors and shareholders adopted the Tectonic Financial, Inc. 2017 Equity Incentive Plan (“Plan”) in May 2017 in connection with the Company’s acquisition of TBI. 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. 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. No stock options were granted during the three and nine months ended September 30, 2019 or 2018, except for the conversion of each option to purchase one Tectonic Holdings common unit to an option to purchase one share of the Company common stock in connection with the Tectonic Merger, resulting in 190,000 options outstanding. As of September 30, 2019, there were 50,000 stock options outstanding that vest on the third anniversary of the grant date, May 15, 2020, and 140,000 stock options outstanding that vest on the fourth anniversary of the grant date, May 15, 2021. The Company is recording compensation expense on a straight-line basis over the vesting periods. The Company recorded salaries and employee benefits expense on our consolidated statements of income in connection with the Plan of $25,000 and $83,000 for the three and nine months ended September 30, 2019, respectively, and $24,000 and $77,000 for the three and nine months ended September 30, 2018, respectively. As of September 30, 2019, there was $129,000 of total unrecognized compensation cost. There was no activity in the Plan for the nine months ended September 30, 2018. The following is a summary of activity in the Plan for the nine months ended September 30, 2019: Number of Shares Underlying Options Weighted Average Exercise Prices Weighted Average Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of the year 190,000 $ 5.37 Granted - - Exercised - - Expired/forfeited - - Outstanding at end of period 190,000 $ 5.37 7.6 (a) Exercisable at end of period - $ - Available for grant at end of period 560,000 (a) 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 September 30, 2019 and 2018 was $1.94. Under Topic 805, the grant date fair value has been restated as though the Tectonic Merger had occurred upon the date at which the entities came under common control. |
Note 12. Commitments and Contin
Note 12. Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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) September 30, 2019 December 31, 2018 Undisbursed loan commitments $ 19,272 $ 14,812 Standby letters of credit 172 162 $ 19,444 $ 14,974 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 $300,000 as of September 30, 2019 and December 31, 2018. Employment Agreements In connection with the Tectonic Merger and the Company’s initial public offering (see Note 2, Tectonic Merger and Initial Public Offering of Series B Preferred Stock, |
Note 13. Related Parties
Note 13. Related Parties | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 13. Related Parties Management agreements with Services: Advisors’ service agreements: CWA Fee Allocation Agreement: DCFH Series A Preferred Stock: Tectonic Merger and Initial Public Offerings of Series B Preferred Stock, On July 12, 2019, the Company repurchased and retired the Series A preferred stock from DCFH. Recruitment incentive note receivable: Notes receivable, related parties was $15,000 and $58,000 as of September 30, 2019 and December 31, 2018, respectively. The Company recognized $15,000 and $44,000 for the three and nine months ended September 30, 2019, respectively, and $20,000 and $58,000 for the three and nine months ended September 30, 2018, respectively, in compensation expense in relation to the forgiven notes receivable, including interest income in relation to the forgiven notes receivable. As of September 30, 2019, certain officers, directors and their affiliated companies had depository accounts with the Bank totaling approximately $3.2 million. None of those deposit accounts have terms more favorable than those available to any other depositor. The Bank had no loans to officers, directors and their affiliated companies during the three and nine months ended September 30, 2019 or 2018. |
Note 14. Regulatory Matters
Note 14. Regulatory Matters | 9 Months Ended |
Sep. 30, 2019 | |
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% to be phased in 0.625% each year over a four-year period, becoming fully implemented January 1, 2019. The Basel III minimum capital ratio requirements as applicable to the Company and the Bank on January 1, 2019 after the full phase-in period 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 fully phased-in Basel III capital ratios. As of September 30, 2019, 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) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2019 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 38,249 15.10 % $ 26,599 10.50 % $ 25,333 10.00 % T Bank, N.A. 38,452 15.33 26,344 10.50 25,089 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 36,710 14.49 21,533 8.50 20,266 8.00 T Bank, N.A. 36,913 14.71 21,326 8.50 20,071 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 19,460 7.68 17,733 7.00 16,466 6.50 T Bank, N.A. 36,913 14.71 17,562 7.00 16,308 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 36,710 11.44 12,835 4.00 16,043 5.00 T Bank, N.A. 36,913 11.33 13,036 4.00 16,294 5.00 As of December 31, 2018 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 28,067 12.41 % $ 23,745 9.875 % $ 22,615 10.00 % T Bank, N.A. 30,116 13.45 22,116 9.875 22,396 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 27,193 12.02 19,222 7.875 18,092 8.00 T Bank, N.A. 29,242 13.06 17,637 7.875 17,917 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 19,159 8.47 19,222 6.375 14,699 6.50 T Bank, N.A. 29,242 13.06 14,278 6.375 14,557 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 27,193 9.40 11,570 4.00 14,462 5.00 T Bank, N.A. 29,242 10.32 11,334 4.00 14,167 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. |
Note 15. Operating Segments
Note 15. Operating Segments | 9 Months Ended |
Sep. 30, 2019 | |
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. 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 TBI’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 three and nine months ended September 30, 2019 and 2018: (In thousands) Banking Other Financial Services HoldCo Consolidated Three Months Ended September 30, 2019 Income Statement Total interest income $ 4,686 $ - $ - $ 4,686 Total interest expense 1,430 - 219 1,649 Provision for loan losses 1,004 - - 1,004 Net-interest income (loss) after provision for loan losses 2,252 - (219 ) 2,033 Non-interest income (loss) 151 7,909 (243 ) 7,817 Depreciation and amortization expense 93 164 - 257 All other non-interest expense 1,991 5,606 209 7,806 Income (loss) before income tax $ 319 $ 2,139 $ (671 ) $ 1,787 Goodwill and other intangibles $ 9,609 $ 2,350 $ - $ 11,959 Total assets $ 347,017 $ 10,380 $ 268 $ 357,665 (In thousands) Banking Other Financial Services HoldCo Consolidated Nine Months Ended September 30, 2019 Income Statement Total interest income $ 13,253 $ - $ 6 $ 13,259 Total interest expense 3,862 - 705 4,567 Provision for loan losses 1,486 - - 1,486 Net-interest income (loss) after provision for loan losses 7,905 - (699 ) 7,206 Non-interest income (loss) 223 22,760 (214 ) 22,769 Depreciation and amortization expense 279 396 - 675 All other non-interest expense 5,720 16,087 549 22,356 Income (loss) before income tax $ 2,129 $ 6,277 $ (1,462 ) $ 6,944 Goodwill and other intangibles $ 9,609 $ 2,350 $ - $ 11,959 Total assets $ 347,017 $ 10,380 $ 268 $ 357,665 (In thousands) Banking Other Financial Services HoldCo Consolidated Three Months Ended September 30, 2018 Income Statement Total interest income $ 3,870 $ - $ - $ 3,870 Total interest expense 906 - 249 1,155 Provision for loan losses 322 - - 322 Net-interest income (loss) after provision for loan losses 2,642 - (249 ) 2,393 Non-interest income 258 5,481 2 5,741 Depreciation and amortization expense 92 98 - 190 All other non-interest expense 1,619 3,852 154 5,625 Income (loss) before income tax $ 1,189 $ 1,531 $ (401 ) $ 2,319 Goodwill and other intangibles $ 9,810 $ - $ - $ 9,810 Total assets $ 289,051 $ 6,515 $ 866 $ 296,432 (In thousands) Banking Other Financial Services HoldCo Consolidated Nine Months Ended September 30, 2018 Income Statement Total interest income $ 10,892 $ - $ - $ 10,892 Total interest expense 2,351 - 704 3,055 Provision for loan losses 643 - - 643 Net-interest income (loss) after provision for loan losses 7,898 - (704 ) 7,194 Non-interest income 415 16,461 1,696 18,572 Depreciation and amortization expense 293 294 - 587 All other non-interest expense 5,326 11,410 309 17,045 Income before income tax $ 2,694 $ 4,757 $ 683 $ 8,134 Goodwill and other intangibles $ 9,810 $ - $ - $ 9,810 Total assets $ 289,051 $ 6,515 $ 866 $ 296,432 |
Note 16. Fair Value of Financia
Note 16. Fair Value of Financials Instruments | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 Securities available for sale: U.S. government agencies $ - $ 7,806 $ - $ 7,806 Mortgage-backed securities - 2,002 - 2,002 As of December 31, 2018 Securities available for sale: U.S. government agencies $ - $ 9,008 $ - $ 9,008 Mortgage-backed securities - 2,496 - 2,496 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 nine months ended September 30, 2019, 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 reported periods, the discount for the one SBA collateral-dependent impaired loan was 0.01%. The significant unobservable inputs (Level 3) used in the fair value measurement of cash flow impaired loans relate to discounted cash flows models using current market rates applied to the estimated life of the loan and credit risk adjustments. Future cash flows are discounted using current interest rates for similar credit risks. During the reported periods, there were no discounts for cash flow 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. As of September 30, 2019 and December 31, 2018, there were no foreclosed assets. During the three months ended March 31, 2019, there was one real estate property foreclosed on with a fair value of $275,000 which had been collateral on a SBA guaranteed loan. The property was sold during the three months ended June 30, 2019. There were no foreclosed assets re-measured during the three and nine months ended September 30, 2019. 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. There were no sales of loans for the three and nine months ended September 30, 2019. During the three and nine months ended September 30, 2018, the Company added a servicing asset of $81,000 in connection with the sale of $3.7 million in loans. There was no allowance provision required for the three months ended September 30, 2019, and the allowance provision required for the nine months ended September 30, 2019 was $162,000. For the three and nine months ended September 30, 2018, the allowance provision required was $122,000 and $292,000, respectively. FASB ASC Topic 825, Financial Instruments 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: September 30, 2019 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 16,326 $ 16,326 Level 2 inputs: Securities available for sale 9,808 9,808 Securities, restricted 2,409 2,409 Loans held for sale 12,911 13,968 Accrued interest receivable 1,267 1,267 Level 3 inputs: Securities held to maturity 6,357 6,357 Securities not readily marketable 100 100 Loans, net 284,825 282,468 Servicing asset 874 874 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 29,504 29,504 Level 2 inputs: Interest bearing deposits 243,656 245,012 Borrowed funds 29,000 29,000 Accrued interest payable 389 389 December 31, 2018 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 18,458 $ 18,458 Level 2 inputs: Securities available for sale 11,504 11,504 Securities, restricted 1,926 1,926 Loans held for sale 16,345 17,732 Accrued interest receivable 1,141 1,141 Level 3 inputs: Securities held to maturity 7,722 7,722 Securities not readily marketable 100 100 Loans, net 234,033 232,508 Servicing asset 1,467 1,467 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 41,142 41,142 Level 2 inputs: Interest bearing deposits 209,231 206,023 Borrowed funds 18,915 18,915 Accrued interest payable 571 571 |
Note 17. Recent Accounting Pron
Note 17. Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 17. Recent Accounting Pronouncements ASU 2016-02 “Leases (Topic 842).” ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.” ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” |
Note 18. Nolan Acquisition
Note 18. Nolan Acquisition | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 18. Nolan Acquisition In January 2019, the Company acquired the assets of Nolan, a TPA based in Kansas City, Kansas, with a cash payment of $2.5 million and offers the TPA services as a division of the Bank. Founded in 1979, Nolan provides clients with retirement plan design and administrative services, specializing in ministerial recordkeeping, administration, actuarial and design services for retirement plans for small businesses and professional practices. Nolan has clients in 50 states and Nolan shares many clients with our trust department. We believe that the addition of TPA services will allow us to serve our clients more fully and to attract new clients to our trust platform. The assets acquired consisted of furniture, fixtures and equipment with a fair value of $150,000. There were no liabilities acquired, resulting in goodwill of $2.4 million from the acquisition. The goodwill will not be amortized, but will be tested for impairment annually. The goodwill recorded is not deductible for federal income tax purposes. In addition, the Bank entered into a consulting agreement with an entity controlled by Mr. Nolan and his family, pursuant to which Mr. Nolan agreed to serve as CEO of the division for three years after closing and provide mutually agreeable consulting services thereafter, in consideration for a monthly fee of $26,041 plus incentive payments based on certain performance metrics, for eight years after closing. Supplemental Pro Forma Information (unaudited) The following table presents financial information regarding the former Nolan operations included in the Company’s consolidated statements of income for the nine months ended September 30, 2019. In addition, the table presents unaudited condensed pro forma financial information assuming that the Nolan acquisition was completed as of January 1, 2018. The table has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been obtained had the acquisition actually occurred on January 1, 2018, or is it indicative of future results. (In thousands) Actual Nolan results of operations for the Nine Months Ended September 30, 2019 Actual for the Nine Months Ended September 30, 2019 Pro Forma for the Nine Months Ended September 30, 2018 Noninterest income $ 3,843 $ 22,769 $ 22,355 Noninterest expense 2,884 23,031 20,625 Net income 758 5,727 8,061 |
Note 1. Organization and Sign_2
Note 1. Organization and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per Share. Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. The computation of all share and per share amounts in this Form 10-Q have been adjusted retroactively to reflect the reverse stock split. 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: Three months ended September 30 Nine months ended September 30 (In thousands, except per share data) 2019 2018 2019 2018 Net income available to common shareholders $ 948 $ 1,839 $ 4,929 $ 6,876 Average shares outstanding 6,569 6,569 6,569 6,563 Effect of common stock-based compensation - - - - Average diluted shares outstanding 6,569 6,569 6,569 6,563 Basic earnings per share $ 0.14 $ 0.28 $ 0.75 $ 1.05 Diluted earnings per share $ 0.14 $ 0.28 $ 0.75 $ 1.05 |
Note 2. Tectonic Merger and I_2
Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The balances shown below represent the assets and liabilities of Tectonic Holdings as of the date of the Tectonic Merger, May 13, 2019, that are reflected on the consolidated financial statements of the Company: (In thousands) May 13, 2019 Assets Cash and cash equivalents $ 5,601 Securities, not readily marketable, at cost 100 Premises and equipment, net 761 Other assets 5,369 Total assets 11,831 Liabilities Other liabilities 2,942 Total liabilities 2,942 Shareholders’ Equity Preferred stock, 10.0% Series A non-cumulative, perpetual ($0.01 par value; 80,338 shares authorized, 80,338 shares issued and outstanding at May 14, 2019) 1 Additional paid-in capital 8,033 Retained earnings 855 Total shareholders’ equity 8,889 Total liabilities and shareholders’ equity $ 11,831 |
Note 3. Securities (Tables)
Note 3. Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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. September 30, 2019 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 7,700 $ 109 $ 3 $ 7,806 Mortgage-backed securities 1,980 22 - 2,002 Total securities available for sale $ 9,680 $ 131 $ 3 $ 9,808 Securities held to maturity Property assessed clean energy $ 6,357 $ - $ - $ 6,357 Securities, restricted: Other $ 2,409 $ - $ - $ 2,409 Securities not readily marketable $ 100 $ - $ - $ 100 December 31, 2018 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 9,233 $ 1 $ 226 $ 9,008 Mortgage-backed securities 2,536 4 44 2,496 Total securities available for sale $ 11,769 $ 5 $ 270 $ 11,504 Securities held to maturity Property assessed clean energy $ 7,722 $ - $ - $ 7,722 Securities, restricted: Other $ 1,926 $ - $ - $ 1,926 Securities not readily marketable $ 100 $ - $ - $ 100 |
Available-for-sale Securities, Continuous 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 September 30, 2019: Less than 12 months 12 months or longer Total (In thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ 407 $ 1 $ 598 $ 2 $ 1,005 $ 3 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and estimated fair value of securities at September 30, 2019 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 after one year through five years $ 4,366 $ 4,375 $ - $ - Due after five years through ten years 2,996 3,075 3,497 3,497 Due after ten years 338 356 2,860 2,860 Mortgage-backed securities 1,980 2,002 - - Total $ 9,680 $ 9,808 $ 6,357 $ 6,357 |
Note 4. Loans and Allowance f_2
Note 4. Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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) September 30, 2019 December 31, 2018 Commercial and industrial $ 89,963 $ 88,915 Consumer installment 3,402 3,636 Real estate – residential 5,265 7,488 Real estate – commercial 49,185 35,221 Real estate – construction and land 7,642 4,653 SBA: SBA 7(a) guaranteed 63,865 33,884 SBA 7(a) unguaranteed 44,373 44,326 SBA 504 20,227 13,400 USDA 2,440 3,367 Other 2 17 Gross Loans 286,364 234,907 Less: Allowance for loan losses 1,539 874 Net loans $ 284,825 $ 234,033 |
Financing Receivable, Nonaccrual [Table Text Block] | Non-accrual loans, segregated by class of loans, were as follows: (In thousands) September 30, 2019 December 31, 2018 Non-accrual loans: SBA guaranteed 5,628 2,252 SBA unguaranteed 1,269 293 Total $ 6,897 $ 2,545 |
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 September 30, 2019 Nine Months Ended Commercial and industrial $ - $ - $ - $ - $ - $ 75 $ - SBA 7,504 3,079 3,818 6,897 230 3,263 - Total $ 7,504 $ 3,079 $ 3,818 $ 6,897 $ 230 $ 3,338 $ - December 31, 2018 Year Ended SBA $ 3,003 $ 2,545 $ - $ 2,545 $ - $ 2,371 $ - Total $ 3,003 $ 2,545 $ - $ 2,545 $ - $ 2,371 $ - |
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: (In thousands) 30-89 Days Past Due 90 Days or More Past Due Total Past Due Total Current Total Loans Total 90 Days Past Due Still Accruing September 30, 2019 Commercial and industrial $ - $ - $ - $ 89,963 $ 89,963 $ - Consumer installment - - - 3,402 3,402 - Real estate – residential - - - 5,265 5,265 - Real estate – commercial 150 - 150 49,035 49,185 - Real estate – construction and land - - - 7,642 7,642 - SBA 3,818 3,079 6,897 121,568 128,465 - USDA - - - 2,440 2,440 - Other - - - 2 2 - Total $ 3,968 $ 3,079 $ 7,047 $ 279,317 $ 286,364 $ - December 31, 2018 Commercial and industrial $ 614 $ - $ 614 $ 88,301 $ 88,915 $ - Consumer installment - - - 3,636 3,636 - Real estate – residential - - - 7,488 7,488 - Real estate – commercial - - - 35,221 35,221 - Real estate – construction and land - - - 4,653 4,653 - SBA 1,431 1,114 2,545 89,065 91,610 - USDA - - - 3,367 3,367 - Other - - - 17 17 - Total $ 2,045 $ 1,114 $ 3,159 $ 231,748 $ 234,907 $ - |
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: (In thousands) Pass Pass- Watch Special Mention Substandard Doubtful Total September 30, 2019 Commercial and industrial $ 89,352 $ 611 $ - $ - $ - $ 89,963 Consumer installment 3,402 - - - - 3,402 Real estate – residential 5,265 - - - - 5,265 Real estate – commercial 49,185 - - - - 49,185 Real estate – construction and land 7,642 - - - - 7,642 SBA 116,928 9,400 868 1,039 230 128,465 USDA 2,440 - - - - 2,440 Other 2 - - - - 2 Total $ 274,216 $ 10,011 $ 868 $ 1,039 $ 230 $ 286,364 December 31, 2018 Commercial and industrial $ 88,879 $ - $ - $ 36 $ - $ 88,915 Consumer installment 3,636 - - - - 3,636 Real estate – residential 7,488 - - - - 7,488 Real estate – commercial 35,221 - - - - 35,221 Real estate – construction and land 4,653 - - - - 4,653 SBA 84,192 7,125 - 293 - 91,610 USDA 3,367 - - - - 3,367 Other 17 - - - - 17 Total $ 227,453 $ 7,125 $ - $ 329 $ - $ 234,907 |
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 Other Total Three months ended: September 30, 2019 Beginning Balance $ 464 $ 26 $ 28 $ 268 $ 54 $ 267 $ - $ - $ 1,107 Provision for loan losses 29 2 (6 ) 109 22 848 - - 1,004 Charge-offs - - - - - (576 ) - - (576 ) Recoveries - - - - - 4 - - 4 Net charge-offs - - - - - (572 ) - - (572 ) Ending balance $ 493 $ 28 $ 22 $ 377 $ 76 $ 543 $ - $ - $ 1,539 September 30, 2018 Beginning Balance $ 319 $ 29 $ 23 $ 137 $ 27 $ 108 $ - $ - $ 643 Provision for loan losses 69 (6 ) 3 44 7 205 - - 322 Charge-offs - - - - - (189 ) - - (189 ) Recoveries - - - - - 1 - - 1 Net recoveries - - - - - (188 ) - - (188 ) Ending balance $ 388 $ 23 $ 26 $ 181 $ 34 $ 125 $ - $ - $ 777 (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Other Total Nine months ended: September 30, 2019 Beginning Balance $ 419 $ 27 $ 27 $ 210 $ 34 $ 157 $ - $ - $ 874 Provision for loan losses 74 1 (5 ) 167 42 1,207 - - 1,486 Charge-offs - - - - - (841 ) - - (841 ) Recoveries - - - - - 20 - - 20 Net charge-offs - - - - - (821 ) - - (821 ) Ending balance $ 493 $ 28 $ 22 $ 377 $ 76 $ 543 $ - $ - $ 1,539 September 30, 2018 Beginning Balance $ 237 $ 13 $ 16 $ 25 $ 27 $ 68 $ - $ - $ 386 Provision for loan losses 151 11 10 156 6 309 - - 643 Charge-offs - - - - - (266 ) - - (266 ) Recoveries - - - - - 14 - - 14 Net recoveries - - - - - (252 ) - - (252 ) Ending balance $ 388 24 $ 26 $ 181 $ 33 $ 125 $ - $ - $ 777 (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Other Total September 30, 2019 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 230 $ - $ - $ 230 Loans collectively evaluated for impairment 493 28 22 377 76 313 - - 1,309 Ending balance $ 493 $ 28 $ 22 $ 377 $ 76 $ 543 $ - $ - $ 1,539 December 31, 2018 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 419 27 27 210 34 157 - - 874 Ending balance $ 419 $ 27 $ 27 $ 210 $ 34 $ 157 $ - $ - $ 874 (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Other Total September 30, 2019 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 6,897 $ - $ - $ 6,897 Loans collectively evaluated for impairment 89,963 3,402 5,265 49,185 7,642 121,568 2,440 2 279,467 Ending balance $ 89,963 $ 3,402 $ 5,265 $ 49,185 $ 7,642 $ 128,465 $ 2,440 $ 2 $ 286,364 December 31, 2018 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 2,545 $ - $ - $ 2,545 Loans collectively evaluated for impairment 88,915 3,636 7,488 35,221 4,653 89,065 3,367 17 232,362 Ending balance $ 88,915 $ 3,636 $ 7,488 $ 35,221 $ 4,653 $ 91,610 $ 3,367 $ 17 $ 234,907 |
Note 5. Leases (Tables)
Note 5. Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
ASU 2016-02 Transition [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of September 30, 2019, the minimum rental commitments under these noncancelable operating leases are as follows (in thousands): 2019 $ 197 2020 776 2021 429 2022 174 2023 and thereafter 97 Total minimum rental payments 1,673 Less: Minimum sublease rentals (32 ) Net minimum rental payments 1,641 Less: Interest (76 ) Present value of lease liabilities $ 1,565 |
Note 6. Goodwill and Core Dep_2
Note 6. Goodwill and Core Deposit Intangible (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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) September 30, 2019 December 31, 2018 Goodwill $ 10,729 $ 8,379 Core deposit intangible 1,230 1,381 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The carrying basis and accumulated amortization of the core deposit intangible as of September 30, 2019 and December 31, 2018 were as follows: (In thousands) September 30, 2019 December 31, 2018 Gross carrying basis $ 1,708 $ 1,708 Accumulated amortization (478 ) (327 ) Net carrying amount $ 1,230 $ 1,381 |
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) Remainder 2019 $ 50 2020 201 2021 201 2022 208 2023 210 Thereafter 360 Total $ 1,230 |
Note 7. Deposits (Tables)
Note 7. Deposits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Deposit Liabilities, Type [Table Text Block] | Deposits were as follows: (In thousands) September 30, 2019 December 31, 2018 Non-interest bearing demand $ 29,504 11 % $ 41,142 16 % Interest-bearing demand (NOW) 3,110 1 3,242 1 Money market accounts 46,668 17 51,815 21 Savings accounts 4,223 2 4,561 2 Time deposits $100,000 and over 183,513 67 144,177 58 Time deposits under $100,000 6,142 2 5,436 2 Total $ 273,160 100 % $ 250,373 100 % |
Time Deposit Maturities [Table Text Block] | As of September 30, 2019 the scheduled maturities of time deposits were as follows: (In thousands) 2019 $ 34,964 2020 113,501 2021 24,395 2022 10,820 2023 119 2024 5,856 Total $ 189,655 |
Note 11. Stock Compensation P_2
Note 11. Stock Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | There was no activity in the Plan for the nine months ended September 30, 2018. The following is a summary of activity in the Plan for the nine months ended September 30, 2019: Number of Shares Underlying Options Weighted Average Exercise Prices Weighted Average Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of the year 190,000 $ 5.37 Granted - - Exercised - - Expired/forfeited - - Outstanding at end of period 190,000 $ 5.37 7.6 (a) Exercisable at end of period - $ - Available for grant at end of period 560,000 |
Note 12. Commitments and Cont_2
Note 12. Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | The following table summarizes loan commitments: (In thousands) September 30, 2019 December 31, 2018 Undisbursed loan commitments $ 19,272 $ 14,812 Standby letters of credit 172 162 $ 19,444 $ 14,974 |
Note 14. Regulatory Matters (Ta
Note 14. Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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% to be phased in 0.625% each year over a four-year period, becoming fully implemented January 1, 2019. The Basel III minimum capital ratio requirements as applicable to the Company and the Bank on January 1, 2019 after the full phase-in period 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) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2019 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 38,249 15.10 % $ 26,599 10.50 % $ 25,333 10.00 % T Bank, N.A. 38,452 15.33 26,344 10.50 25,089 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 36,710 14.49 21,533 8.50 20,266 8.00 T Bank, N.A. 36,913 14.71 21,326 8.50 20,071 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 19,460 7.68 17,733 7.00 16,466 6.50 T Bank, N.A. 36,913 14.71 17,562 7.00 16,308 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 36,710 11.44 12,835 4.00 16,043 5.00 T Bank, N.A. 36,913 11.33 13,036 4.00 16,294 5.00 As of December 31, 2018 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 28,067 12.41 % $ 23,745 9.875 % $ 22,615 10.00 % T Bank, N.A. 30,116 13.45 22,116 9.875 22,396 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 27,193 12.02 19,222 7.875 18,092 8.00 T Bank, N.A. 29,242 13.06 17,637 7.875 17,917 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 19,159 8.47 19,222 6.375 14,699 6.50 T Bank, N.A. 29,242 13.06 14,278 6.375 14,557 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 27,193 9.40 11,570 4.00 14,462 5.00 T Bank, N.A. 29,242 10.32 11,334 4.00 14,167 5.00 |
Note 15. Operating Segments (Ta
Note 15. Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 three and nine months ended September 30, 2019 and 2018: (In thousands) Banking Other Financial Services HoldCo Consolidated Three Months Ended September 30, 2019 Income Statement Total interest income $ 4,686 $ - $ - $ 4,686 Total interest expense 1,430 - 219 1,649 Provision for loan losses 1,004 - - 1,004 Net-interest income (loss) after provision for loan losses 2,252 - (219 ) 2,033 Non-interest income (loss) 151 7,909 (243 ) 7,817 Depreciation and amortization expense 93 164 - 257 All other non-interest expense 1,991 5,606 209 7,806 Income (loss) before income tax $ 319 $ 2,139 $ (671 ) $ 1,787 Goodwill and other intangibles $ 9,609 $ 2,350 $ - $ 11,959 Total assets $ 347,017 $ 10,380 $ 268 $ 357,665 (In thousands) Banking Other Financial Services HoldCo Consolidated Nine Months Ended September 30, 2019 Income Statement Total interest income $ 13,253 $ - $ 6 $ 13,259 Total interest expense 3,862 - 705 4,567 Provision for loan losses 1,486 - - 1,486 Net-interest income (loss) after provision for loan losses 7,905 - (699 ) 7,206 Non-interest income (loss) 223 22,760 (214 ) 22,769 Depreciation and amortization expense 279 396 - 675 All other non-interest expense 5,720 16,087 549 22,356 Income (loss) before income tax $ 2,129 $ 6,277 $ (1,462 ) $ 6,944 Goodwill and other intangibles $ 9,609 $ 2,350 $ - $ 11,959 Total assets $ 347,017 $ 10,380 $ 268 $ 357,665 (In thousands) Banking Other Financial Services HoldCo Consolidated Three Months Ended September 30, 2018 Income Statement Total interest income $ 3,870 $ - $ - $ 3,870 Total interest expense 906 - 249 1,155 Provision for loan losses 322 - - 322 Net-interest income (loss) after provision for loan losses 2,642 - (249 ) 2,393 Non-interest income 258 5,481 2 5,741 Depreciation and amortization expense 92 98 - 190 All other non-interest expense 1,619 3,852 154 5,625 Income (loss) before income tax $ 1,189 $ 1,531 $ (401 ) $ 2,319 Goodwill and other intangibles $ 9,810 $ - $ - $ 9,810 Total assets $ 289,051 $ 6,515 $ 866 $ 296,432 (In thousands) Banking Other Financial Services HoldCo Consolidated Nine Months Ended September 30, 2018 Income Statement Total interest income $ 10,892 $ - $ - $ 10,892 Total interest expense 2,351 - 704 3,055 Provision for loan losses 643 - - 643 Net-interest income (loss) after provision for loan losses 7,898 - (704 ) 7,194 Non-interest income 415 16,461 1,696 18,572 Depreciation and amortization expense 293 294 - 587 All other non-interest expense 5,326 11,410 309 17,045 Income before income tax $ 2,694 $ 4,757 $ 683 $ 8,134 Goodwill and other intangibles $ 9,810 $ - $ - $ 9,810 Total assets $ 289,051 $ 6,515 $ 866 $ 296,432 |
Note 16. Fair Value of Financ_2
Note 16. Fair Value of Financials Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 Securities available for sale: U.S. government agencies $ - $ 7,806 $ - $ 7,806 Mortgage-backed securities - 2,002 - 2,002 As of December 31, 2018 Securities available for sale: U.S. government agencies $ - $ 9,008 $ - $ 9,008 Mortgage-backed securities - 2,496 - 2,496 |
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: September 30, 2019 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 16,326 $ 16,326 Level 2 inputs: Securities available for sale 9,808 9,808 Securities, restricted 2,409 2,409 Loans held for sale 12,911 13,968 Accrued interest receivable 1,267 1,267 Level 3 inputs: Securities held to maturity 6,357 6,357 Securities not readily marketable 100 100 Loans, net 284,825 282,468 Servicing asset 874 874 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 29,504 29,504 Level 2 inputs: Interest bearing deposits 243,656 245,012 Borrowed funds 29,000 29,000 Accrued interest payable 389 389 December 31, 2018 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 18,458 $ 18,458 Level 2 inputs: Securities available for sale 11,504 11,504 Securities, restricted 1,926 1,926 Loans held for sale 16,345 17,732 Accrued interest receivable 1,141 1,141 Level 3 inputs: Securities held to maturity 7,722 7,722 Securities not readily marketable 100 100 Loans, net 234,033 232,508 Servicing asset 1,467 1,467 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 41,142 41,142 Level 2 inputs: Interest bearing deposits 209,231 206,023 Borrowed funds 18,915 18,915 Accrued interest payable 571 571 |
Note 18. Nolan Acquisition (Tab
Note 18. Nolan Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information [Table Text Block] | The table has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been obtained had the acquisition actually occurred on January 1, 2018, or is it indicative of future results. (In thousands) Actual Nolan results of operations for the Nine Months Ended September 30, 2019 Actual for the Nine Months Ended September 30, 2019 Pro Forma for the Nine Months Ended September 30, 2018 Noninterest income $ 3,843 $ 22,769 $ 22,355 Noninterest expense 2,884 23,031 20,625 Net income 758 5,727 8,061 |
Note 1. Organization and Sign_3
Note 1. Organization and Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | May 29, 2019USD ($)shares | May 14, 2019USD ($)$ / sharesshares | May 31, 2019$ / sharesshares | Mar. 31, 2018shares | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($) | Jan. 31, 2019 | Jan. 01, 2019USD ($) |
Note 1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||||
Number of States in which Entity Operates | 50 | |||||||
Stock Issued During Period, Shares, New Issues (in Shares) | shares | 51,250 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | shares | 0 | |||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 15,506 | $ 0 | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 2,200 | |||||||
Operating Lease, Right-of-Use Asset | 1,400 | 1,600 | ||||||
Operating Lease, Liability | $ 1,565 | $ 1,700 | ||||||
The Nolan Company ("Nolan") [Member] | ||||||||
Note 1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||||
Number of States in which Entity Operates | 50 | |||||||
Number of Subsidiaries | 4 | |||||||
Retirement Plans, Serviced by Trust Department, Percentage | 54.00% | |||||||
Series B Preferred Stock [Member] | ||||||||
Note 1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||||
Preferred Stock, Dividend Rate, Percentage | 9.00% | 9.00% | ||||||
Stock Issued During Period, Shares, New Issues (in Shares) | shares | 1,500,000 | 1,725,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | shares | 225,000 | 225,000 | ||||||
Sale of Stock, Price Per Share (in Dollars per share) | $ / shares | $ 10 | $ 10 | ||||||
Proceeds from Issuance or Sale of Equity | $ 15,500 | $ 17,250 | ||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 15,500 |
Note 1. Organization and Sign_4
Note 1. Organization and Significant Accounting Policies (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income (in Dollars) | $ 948 | $ 1,839 | $ 4,929 | $ 6,876 |
Average shares outstanding | 6,568,750 | 6,568,750 | 6,568,750 | 6,563,429 |
Effect of common stock-based compensation | 0 | 0 | 0 | 0 |
Average diluted shares outstanding | 6,568,750 | 6,568,750 | 6,568,750 | 6,563,429 |
Basic earnings per share (in Dollars per share) | $ 0.14 | $ 0.28 | $ 0.75 | $ 1.05 |
Diluted earnings per share (in Dollars per share) | $ 0.14 | $ 0.28 | $ 0.75 | $ 1.05 |
Note 2. Tectonic Merger and I_3
Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 12, 2019 | May 29, 2019 | May 14, 2019 | May 13, 2019 | May 31, 2019 | Sep. 30, 2019 | Mar. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2018 |
Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock (Details) [Line Items] | |||||||||
Common Stock, Shares, Outstanding | 6,568,750 | 6,568,750 | 6,568,750 | ||||||
Common Stock, Shares, Issued | 6,568,750 | 6,568,750 | 6,568,750 | ||||||
Stock Issued During Period, Shares, New Issues | 51,250 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | ||||||||
Tectonic Holdings, LLC [Member] | |||||||||
Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock (Details) [Line Items] | |||||||||
Unit, Description | each common unit of Tectonic Holdings outstanding immediately prior to the effective time of the Tectonic Merger was converted into one share of Company common stock, and each option to purchase one Tectonic Holdings common unit was converted into an option to purchase one share of Company common stock | ||||||||
Common Stock, Shares, Outstanding | 6,568,750 | ||||||||
Common Stock, Shares, Issued | 6,568,750 | ||||||||
Debt Conversion, Original Debt, Amount (in Dollars) | $ 8,000 | ||||||||
Debt Conversion, Converted Instrument, Shares Issued | 80,338 | ||||||||
Preferred Stock, Dividend Rate, Percentage | 10.00% | ||||||||
Series A Preferred Stock [Member] | |||||||||
Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock (Details) [Line Items] | |||||||||
Preferred Stock, Dividend Rate, Percentage | 10.00% | 10.00% | |||||||
Preferred Stock, Liquidation Preference Per Share (in Dollars per share) | $ 100 | $ 100 | |||||||
Stock Repurchased and Retired During Period, Shares | 80,338 | ||||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | $ 8,000 | $ 8,034 | |||||||
Series A Preferred Stock [Member] | Tectonic Holdings, LLC [Member] | |||||||||
Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock (Details) [Line Items] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Description | each Tectonic Holdings preferred unit was converted into one share of 10.0% Series A Non-Cumulative Perpetual Preferred Stock of the Company | ||||||||
Preferred Stock, Dividend Rate, Percentage | 10.00% | ||||||||
Preferred Stock, Liquidation Preference Per Share (in Dollars per share) | $ 100 | ||||||||
Series B Preferred Stock [Member] | |||||||||
Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock (Details) [Line Items] | |||||||||
Preferred Stock, Dividend Rate, Percentage | 9.00% | 9.00% | |||||||
Stock Issued During Period, Shares, New Issues | 1,500,000 | 1,725,000 | |||||||
Sale of Stock, Price Per Share (in Dollars per share) | $ 10 | $ 10 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 225,000 | 225,000 | |||||||
Proceeds from Issuance or Sale of Equity (in Dollars) | $ 15,500 | $ 17,250 |
Note 2. Tectonic Merger and I_4
Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed - Tectonic Holdings, LLC [Member] $ in Thousands | May 13, 2019USD ($) |
Assets | |
Cash and cash equivalents | $ 5,601 |
Securities, not readily marketable, at cost | 100 |
Premises and equipment, net | 761 |
Other assets | 5,369 |
Total assets | 11,831 |
Liabilities | |
Other liabilities | 2,942 |
Total liabilities | 2,942 |
Shareholders’ Equity | |
Preferred stock, 10.0% Series A non-cumulative, perpetual ($0.01 par value; 80,338 shares authorized, 80,338 shares issued and outstanding at May 14, 2019 | 1 |
Additional paid-in capital | 8,033 |
Retained earnings | 855 |
Total shareholders’ equity | 8,889 |
Total liabilities and shareholders’ equity | $ 11,831 |
Note 2. Tectonic Merger and I_5
Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Parentheticals) - Tectonic Holdings, LLC [Member] shares in Thousands | May 13, 2019$ / sharesshares |
Note 2. Tectonic Merger and Initial Public Offering of Series B Preferred Stock (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Parentheticals) [Line Items] | |
Preferred stock, par value (in Dollars per share) | $ / shares | $ 10 |
Preferred stock | 10.00% |
Preferred stock, shares authorized | 80,338 |
Preferred stock, shares issued | 80,338 |
Preferred stock, shares outstanding | 80,338 |
Note 3. Securities (Details)
Note 3. Securities (Details) | 9 Months Ended | |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Note 3. Securities (Details) [Line Items] | ||
Pledged Assets Separately Reported, Securities Pledged for Federal Home Loan Bank, at Fair Value | $ 8,900,000 | $ 9,800,000 |
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | 954,000 | 1,700,000 |
Federal Reserve Bank Stock | 1,200,000 | 980,450 |
Federal Home Loan Bank Stock | 1,200,000 | 945,900 |
Cost Method Investments | $ 100,000 | $ 100,000 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 2 | |
Minimum [Member] | ||
Note 3. Securities (Details) [Line Items] | ||
Property Assessed Clean Energy, Period of Installments | 10 years | |
Maximum [Member] | ||
Note 3. Securities (Details) [Line Items] | ||
Property Assessed Clean Energy, Period of Installments | 15 years |
Note 3. Securities (Details) -
Note 3. Securities (Details) - Schedule of Available-for-sale Securities Reconciliation - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities available for sale: | ||
Securities available for sale, Amortized Cost | $ 9,680 | $ 11,769 |
Securities available for sale, Gross Unrealized Gains | 131 | 5 |
Securities available for sale, Gross Unrealized Losses | 3 | 270 |
Securities available for sale, Estimated Fair Value | 9,808 | 11,504 |
Securities held to maturity: | ||
Securities held to maturity, Amortized Cost | 6,357 | 7,722 |
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 | 6,357 | 7,722 |
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 | 7,700 | 9,233 |
Securities available for sale, Gross Unrealized Gains | 109 | 1 |
Securities available for sale, Gross Unrealized Losses | 3 | 226 |
Securities available for sale, Estimated Fair Value | 7,806 | 9,008 |
Collateralized Mortgage Backed Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, Amortized Cost | 1,980 | 2,536 |
Securities available for sale, Gross Unrealized Gains | 22 | 4 |
Securities available for sale, Gross Unrealized Losses | 0 | 44 |
Securities available for sale, Estimated Fair Value | 2,002 | 2,496 |
Other Debt Obligations [Member] | ||
Securities, restricted: | ||
Securities, Amortized Cost | 2,409 | 1,926 |
Securities, Gross Unrealized Gains | 0 | 0 |
Securities, Gross Unrealized Losses | 0 | 0 |
Securities, Estimated Fair Value | $ 2,409 | $ 1,926 |
Note 3. Securities (Details) _2
Note 3. Securities (Details) - Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value - US Government Agencies Debt Securities [Member] $ in Thousands | Sep. 30, 2019USD ($) |
Note 3. Securities (Details) - Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Line Items] | |
Less than 12 months, Fair Value | $ 407 |
Less than 12 months, Unrealized Losses | 1 |
12 months or longer, Fair Value | 598 |
12 months or longer, Unrealized Losses | 2 |
Total, Fair Value | 1,005 |
Total, Unrealized Losses | $ 3 |
Note 3. Securities (Details) _3
Note 3. Securities (Details) - Investments Classified by Contractual Maturity Date - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments Classified by Contractual Maturity Date [Abstract] | ||
Due after one year through five years, Available for Sale Amortized Cost | $ 4,366 | |
Due after one year through five years, Available for Sale Estimated Fair Value | 4,375 | |
Due after one year through five years, Held to Maturity Amortized Cost | 0 | |
Due after one year through five years, Held to Maturity Estimated Fair Value | 0 | |
Due after five years through ten years, Available for Sale Amortized Cost | 2,996 | |
Due after five years through ten years, Available for Sale Estimated Fair Value | 3,075 | |
Due after five years through ten years, Held to Maturity Amortized Cost | 3,497 | |
Due after five years through ten years, Held to Maturity Estimated Fair Value | 3,497 | |
Due after ten years, Available for Sale Amortized Cost | 338 | |
Due after ten years, Available for Sale Estimated Fair Value | 356 | |
Due after ten years, Held to Maturity Amortized Cost | 2,860 | |
Due after ten years, Held to Maturity Estimated Fair Value | 2,860 | |
Mortgage-backed securities, Available for Sale Amortized Cost | 1,980 | |
Mortgage-backed securities, Available for Sale Estimated Fair Value | 2,002 | |
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 | 9,680 | |
Total, Available for Sale Estimated Fair Value | 9,808 | |
Total, Held to Maturity Amortized Cost | 6,357 | $ 7,722 |
Total, Held to Maturity Estimated Fair Value | $ 6,357 | $ 7,722 |
Note 4. Loans and Allowance f_3
Note 4. Loans and Allowance for Loan Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Note 4. Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Dental Loans | $ 73.6 | $ 73.6 | |
Percentage of Dental Practice to Loan Portfolio | 25.70% | ||
Increase (Decrease) in Loans Held-for-sale | 14.8 | $ 27.5 | |
Number of SBA Loan Programs | 2 | ||
Minimum [Member] | |||
Note 4. Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Loans Guarantee On Principal Balance | 75.00% | ||
Maximum [Member] | |||
Note 4. Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Loans Guarantee On Principal Balance | 80.00% | ||
Business and Industry Loans [Member] | |||
Note 4. 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 [Member] | |||
Note 4. Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | $ 12.9 | $ 12.9 | $ 16.3 |
SBA 7(a) [Member] | |||
Note 4. 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% 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] | |||
Note 4. Loans and Allowance for Loan Losses (Details) [Line Items] | |||
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 $5.5 million for those 504 loans that meet a public policy goal. | ||
USDA [Member] | |||
Note 4. Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Description of Loan Program | These loans are similar to the SBA product, except they are guaranteed by the USDA. The guaranteed amount is generally 80%. B&I loans are made to businesses in designated rural areas and are generally larger loans to larger businesses than the SBA 7(a) loans. Similar to the SBA 7(a) product, they can be sold into the secondary market. These loans can be utilized for rural commercial real estate and equipment. The loans can have maturities up to 30 years and the rates can be fixed or variable. |
Note 4. Loans and Allowance f_4
Note 4. Loans and Allowance for Loan Losses (Details) - Schedule of Accounts, Notes, Loans and Financing Receivables - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | $ 286,364 | $ 234,907 | ||||
Less: | ||||||
Allowance for loan losses | 1,539 | $ 1,107 | 874 | $ 777 | $ 643 | $ 386 |
Net loans | 284,825 | 234,033 | ||||
Commercial and Industrial Sector [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 89,963 | 88,915 | ||||
Less: | ||||||
Allowance for loan losses | 493 | 464 | 419 | 388 | 319 | 237 |
Consumer Portfolio Segment [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 3,402 | 3,636 | ||||
Less: | ||||||
Allowance for loan losses | 28 | 26 | 27 | 23 | 29 | 13 |
SBA 7(a) guaranteed [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 63,865 | 33,884 | ||||
SBA 7(a) unguaranteed [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 44,373 | 44,326 | ||||
SBA 504 [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 20,227 | 13,400 | ||||
USDA [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 2,440 | 3,367 | ||||
Less: | ||||||
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Other Financing Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 2 | 17 | ||||
Less: | ||||||
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Real Estate Sector [Member] | Residential Mortgage [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 5,265 | 7,488 | ||||
Less: | ||||||
Allowance for loan losses | 22 | 28 | 27 | 26 | 23 | 16 |
Real Estate Sector [Member] | Commercial Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 49,185 | 35,221 | ||||
Less: | ||||||
Allowance for loan losses | 377 | 268 | 210 | 181 | 137 | 25 |
Real Estate Sector [Member] | Construction Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 7,642 | 4,653 | ||||
Less: | ||||||
Allowance for loan losses | $ 76 | $ 54 | $ 34 | $ 34 | $ 27 | $ 27 |
Note 4. Loans and Allowance f_5
Note 4. Loans and Allowance for Loan Losses (Details) - Financing Receivable, Nonaccrual - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Non-accrual loans: | ||
Financing Receivable, Nonaccrual | $ 6,897 | $ 2,545 |
SBA 7(a) guaranteed [Member] | ||
Non-accrual loans: | ||
Financing Receivable, Nonaccrual | 5,628 | 2,252 |
SBA 7(a) unguaranteed [Member] | ||
Non-accrual loans: | ||
Financing Receivable, Nonaccrual | $ 1,269 | $ 293 |
Note 4. Loans and Allowance f_6
Note 4. Loans and Allowance for Loan Losses (Details) - Impaired Financing Receivables - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | $ 7,504 | $ 3,003 |
Recorded Investment With No Allowance | 3,079 | 2,545 |
Recorded Investment With Allowance | 3,818 | 0 |
Total Recorded Investment | 6,897 | 2,545 |
Related Allowance | 230 | 0 |
Average Recorded Investment | 3,338 | 2,371 |
Interest Income Recognized | 0 | 0 |
Commercial and Industrial Sector [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 | 75 | |
Interest Income Recognized | 0 | |
SBA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 7,504 | 3,003 |
Recorded Investment With No Allowance | 3,079 | 2,545 |
Recorded Investment With Allowance | 3,818 | 0 |
Total Recorded Investment | 6,897 | 2,545 |
Related Allowance | 230 | 0 |
Average Recorded Investment | 3,263 | 2,371 |
Interest Income Recognized | $ 0 | $ 0 |
Note 4. Loans and Allowance f_7
Note 4. Loans and Allowance for Loan Losses (Details) - Financing Receivable, Past Due - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 7,047 | $ 3,159 |
Financing Receivable, Recorded Investment, Total Current | 279,317 | 231,748 |
Financing Receivable, Recorded Investment, Total Loans | 286,364 | 234,907 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 614 |
Financing Receivable, Recorded Investment, Total Current | 89,963 | 88,301 |
Financing Receivable, Recorded Investment, Total Loans | 89,963 | 88,915 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 3,402 | 3,636 |
Financing Receivable, Recorded Investment, Total Loans | 3,402 | 3,636 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Residential Mortgage [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 | 5,265 | 7,488 |
Financing Receivable, Recorded Investment, Total Loans | 5,265 | 7,488 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 150 | 0 |
Financing Receivable, Recorded Investment, Total Current | 49,035 | 35,221 |
Financing Receivable, Recorded Investment, Total Loans | 49,185 | 35,221 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Construction Loans [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 | 7,642 | 4,653 |
Financing Receivable, Recorded Investment, Total Loans | 7,642 | 4,653 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
SBA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 6,897 | 2,545 |
Financing Receivable, Recorded Investment, Total Current | 121,568 | 89,065 |
Financing Receivable, Recorded Investment, Total Loans | 128,465 | 91,610 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
USDA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 2,440 | 3,367 |
Financing Receivable, Recorded Investment, Total Loans | 2,440 | 3,367 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Other Financing Receivable [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 2 | 17 |
Financing Receivable, Recorded Investment, Total Loans | 2 | 17 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,968 | 2,045 |
Financial Asset, 30 to 89 Days Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 614 |
Financial Asset, 30 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financial Asset, 30 to 89 Days Past Due [Member] | Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financial Asset, 30 to 89 Days Past Due [Member] | Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 150 | 0 |
Financial Asset, 30 to 89 Days Past Due [Member] | Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financial Asset, 30 to 89 Days Past Due [Member] | SBA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,818 | 1,431 |
Financial Asset, 30 to 89 Days Past Due [Member] | USDA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financial Asset, 30 to 89 Days Past Due [Member] | Other Financing Receivable [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,079 | 1,114 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | SBA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,079 | 1,114 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | USDA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Other Financing Receivable [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 |
Note 4. Loans and Allowance f_8
Note 4. Loans and Allowance for Loan Losses (Details) - Financing Receivable Credit Quality Indicators - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | $ 286,364 | $ 234,907 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 89,963 | 88,915 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 3,402 | 3,636 |
Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 5,265 | 7,488 |
Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 49,185 | 35,221 |
Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 7,642 | 4,653 |
SBA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 128,465 | 91,610 |
USDA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2,440 | 3,367 |
Other Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2 | 17 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 274,216 | 227,453 |
Pass [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 89,352 | 88,879 |
Pass [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 3,402 | 3,636 |
Pass [Member] | Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 5,265 | 7,488 |
Pass [Member] | Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 49,185 | 35,221 |
Pass [Member] | Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 7,642 | 4,653 |
Pass [Member] | SBA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 116,928 | 84,192 |
Pass [Member] | USDA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2,440 | 3,367 |
Pass [Member] | Other Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2 | 17 |
Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 10,011 | 7,125 |
Pass-Watch [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 611 | 0 |
Pass-Watch [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Pass-Watch [Member] | Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Pass-Watch [Member] | Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Pass-Watch [Member] | Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Pass-Watch [Member] | SBA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 9,400 | 7,125 |
Pass-Watch [Member] | USDA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Pass-Watch [Member] | Other Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 868 | 0 |
Special Mention [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Special Mention [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Special Mention [Member] | Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Special Mention [Member] | Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Special Mention [Member] | Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Special Mention [Member] | SBA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 868 | 0 |
Special Mention [Member] | USDA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Special Mention [Member] | Other Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 1,039 | 329 |
Substandard [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 36 |
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Substandard [Member] | Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Substandard [Member] | Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Substandard [Member] | Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Substandard [Member] | SBA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 1,039 | 293 |
Substandard [Member] | USDA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Substandard [Member] | Other Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 230 | 0 |
Doubtful [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Doubtful [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Doubtful [Member] | Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Doubtful [Member] | Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Doubtful [Member] | Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Doubtful [Member] | SBA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 230 | 0 |
Doubtful [Member] | USDA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Doubtful [Member] | Other Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | $ 0 | $ 0 |
Note 4. Loans and Allowance f_9
Note 4. Loans and Allowance for Loan Losses (Details) - Financing Receivable, Allowance for Credit Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Three months ended: | |||||
Beginning Balance | $ 1,107 | $ 643 | $ 874 | $ 386 | |
Provision for loan losses | 1,004 | 322 | 1,486 | 643 | |
Charge-offs | (576) | (189) | (841) | (266) | |
Recoveries | 4 | 1 | 20 | 14 | |
Net charge-offs | (572) | (188) | (821) | (252) | |
Ending balance | 1,539 | 777 | 1,539 | 777 | |
Loans individually evaluated for impairment, allowance | 230 | 230 | $ 0 | ||
Loans collectively evaluated for impairment, allowance | 1,309 | 1,309 | 874 | ||
December 31, 2018 | |||||
Loans individually evaluated for impairment | 6,897 | 6,897 | 2,545 | ||
Loans collectively evaluated for impairment | 279,467 | 279,467 | 232,362 | ||
Ending balance | 286,364 | 286,364 | 234,907 | ||
Commercial and Industrial Sector [Member] | |||||
Three months ended: | |||||
Beginning Balance | 464 | 319 | 419 | 237 | |
Provision for loan losses | 29 | 69 | 74 | 151 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 493 | 388 | 493 | 388 | |
Loans individually evaluated for impairment, allowance | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment, allowance | 493 | 493 | 419 | ||
December 31, 2018 | |||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 89,963 | 89,963 | 88,915 | ||
Ending balance | 89,963 | 89,963 | 88,915 | ||
Consumer Portfolio Segment [Member] | |||||
Three months ended: | |||||
Beginning Balance | 26 | 29 | 27 | 13 | |
Provision for loan losses | 2 | (6) | 1 | 11 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 28 | 23 | 28 | 23 | |
Loans individually evaluated for impairment, allowance | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment, allowance | 28 | 28 | 27 | ||
December 31, 2018 | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 3,402 | 3,402 | 3,636 | ||
Ending balance | 3,402 | 3,402 | 3,636 | ||
SBA [Member] | |||||
Three months ended: | |||||
Beginning Balance | 267 | 108 | 157 | 68 | |
Provision for loan losses | 848 | 205 | 1,207 | 309 | |
Charge-offs | (576) | (189) | (841) | (266) | |
Recoveries | 4 | 1 | 20 | 14 | |
Net charge-offs | (572) | (188) | (821) | (252) | |
Ending balance | 543 | 125 | 543 | 125 | |
Loans individually evaluated for impairment, allowance | 230 | 230 | 0 | ||
Loans collectively evaluated for impairment, allowance | 313 | 313 | 157 | ||
December 31, 2018 | |||||
Loans individually evaluated for impairment | 6,897 | 6,897 | 2,545 | ||
Loans collectively evaluated for impairment | 121,568 | 121,568 | 89,065 | ||
Ending balance | 128,465 | 128,465 | 91,610 | ||
USDA [Member] | |||||
Three months ended: | |||||
Beginning Balance | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | |
Loans individually evaluated for impairment, allowance | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment, allowance | 0 | 0 | 0 | ||
December 31, 2018 | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 2,440 | 2,440 | 3,367 | ||
Ending balance | 2,440 | 2,440 | 3,367 | ||
Other Financing Receivable [Member] | |||||
Three months ended: | |||||
Beginning Balance | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | |
Loans individually evaluated for impairment, allowance | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment, allowance | 0 | 0 | 0 | ||
December 31, 2018 | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 2 | 2 | 17 | ||
Ending balance | 2 | 2 | 17 | ||
Real Estate Sector [Member] | Residential Mortgage [Member] | |||||
Three months ended: | |||||
Beginning Balance | 28 | 23 | 27 | 16 | |
Provision for loan losses | (6) | 3 | (5) | 10 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 22 | 26 | 22 | 26 | |
Loans individually evaluated for impairment, allowance | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment, allowance | 22 | 22 | 27 | ||
December 31, 2018 | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 5,265 | 5,265 | 7,488 | ||
Ending balance | 5,265 | 5,265 | 7,488 | ||
Real Estate Sector [Member] | Commercial Real Estate [Member] | |||||
Three months ended: | |||||
Beginning Balance | 268 | 137 | 210 | 25 | |
Provision for loan losses | 109 | 44 | 167 | 156 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 377 | 181 | 377 | 181 | |
Loans individually evaluated for impairment, allowance | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment, allowance | 377 | 377 | 210 | ||
December 31, 2018 | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 49,185 | 49,185 | 35,221 | ||
Ending balance | 49,185 | 49,185 | 35,221 | ||
Real Estate Sector [Member] | Construction Loans [Member] | |||||
Three months ended: | |||||
Beginning Balance | 54 | 27 | 34 | 27 | |
Provision for loan losses | 22 | 7 | 42 | 6 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 76 | $ 34 | 76 | $ 34 | |
Loans individually evaluated for impairment, allowance | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment, allowance | 76 | 76 | 34 | ||
December 31, 2018 | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 7,642 | 7,642 | 4,653 | ||
Ending balance | $ 7,642 | $ 7,642 | $ 4,653 |
Note 5. Leases (Details)
Note 5. Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
ASU 2016-02 Transition [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 1,400 | $ 1,600 |
Operating Lease, Liability | $ 1,565 | $ 1,700 |
Operating Lease, Weighted Average Remaining Lease Term | 2 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.63% | |
Operating Leases, Future Minimum Payments Receivable | $ 1,200 |
Note 5. Leases (Details) - Sche
Note 5. Leases (Details) - Schedule of Future Minimum Rental Payments for Operating Leases - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Jan. 01, 2019 | |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | ||
2019 | $ 197 | |
2020 | 776 | |
2021 | 429 | |
2022 | 174 | |
2023 and thereafter | 97 | |
Total minimum rental payments | 1,673 | |
Less: Minimum sublease rentals | (32) | |
Net minimum rental payments | 1,641 | |
Less: Interest | (76) | |
Present value of lease liabilities | $ 1,565 | $ 1,700 |
Note 6. Goodwill and Core Dep_3
Note 6. Goodwill and Core Deposit Intangible (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 31, 2019 | Dec. 31, 2018 | |
Note 6. Goodwill and Core Deposit Intangible (Details) [Line Items] | ||||||
Goodwill | $ 10,729 | $ 10,729 | $ 8,379 | |||
Amortization of Intangible Assets | 50 | $ 50 | 151 | $ 151 | ||
The Nolan Company ("Nolan") [Member] | ||||||
Note 6. Goodwill and Core Deposit Intangible (Details) [Line Items] | ||||||
Goodwill | $ 2,400 | $ 2,400 | $ 2,400 | |||
Minimum [Member] | ||||||
Note 6. Goodwill and Core Deposit Intangible (Details) [Line Items] | ||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||||
Maximum [Member] | ||||||
Note 6. Goodwill and Core Deposit Intangible (Details) [Line Items] | ||||||
Finite-Lived Intangible Asset, Useful Life | 12 years |
Note 6. Goodwill and Core Dep_4
Note 6. Goodwill and Core Deposit Intangible (Details) - Schedule of Intangible Assets and Goodwill - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Note 6. Goodwill and Core Deposit Intangible (Details) - Schedule of Intangible Assets and Goodwill [Line Items] | ||
Goodwill | $ 10,729 | $ 8,379 |
Core deposit intangible | 1,708 | 1,708 |
Core Deposits [Member] | ||
Note 6. Goodwill and Core Deposit Intangible (Details) - Schedule of Intangible Assets and Goodwill [Line Items] | ||
Core deposit intangible | $ 1,230 | $ 1,381 |
Note 6. Goodwill and Core Dep_5
Note 6. Goodwill and Core Deposit Intangible (Details) - Finite-lived Intangible Assets, Amortization Expense - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-lived Intangible Assets, Amortization Expense [Abstract] | ||
Gross carrying basis | $ 1,708 | $ 1,708 |
Accumulated amortization | (478) | (327) |
Net carrying amount | $ 1,230 | $ 1,381 |
Note 6. Goodwill and Core Dep_6
Note 6. Goodwill and Core Deposit Intangible (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
Remainder 2019 | $ 50 | |
2020 | 201 | |
2021 | 201 | |
2022 | 208 | |
2023 | 210 | |
Thereafter | 360 | |
Total | $ 1,230 | $ 1,381 |
Note 7. Deposits (Details)
Note 7. Deposits (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Disclosure Text Block [Abstract] | ||
Cash, FDIC Insured Amount | $ 250,000 | |
Time Deposits, at or Above FDIC Insurance Limit | $ 39,600,000 | $ 31,600,000 |
Note 7. Deposits (Details) - De
Note 7. Deposits (Details) - Deposit Liabilities, Type - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Deposit Liabilities, Type [Abstract] | ||
Non-interest bearing demand | $ 29,504 | $ 41,142 |
Non-interest bearing demand, percentage | 11.00% | 16.00% |
Interest-bearing demand (NOW) | $ 3,110 | $ 3,242 |
Interest-bearing demand (NOW), percentage | 1.00% | 1.00% |
Money market accounts | $ 46,668 | $ 51,815 |
Money market accounts, percentage | 17.00% | 21.00% |
Savings accounts | $ 4,223 | $ 4,561 |
Savings accounts, percentage | 2.00% | 2.00% |
Time deposits $100,000 and over | $ 183,513 | $ 144,177 |
Time deposits $100,000 and over, percentage | 67.00% | 58.00% |
Time deposits under $100,000 | $ 6,142 | $ 5,436 |
Time deposits under $100,000, percentage | 2.00% | 2.00% |
Total | $ 273,160 | $ 250,373 |
Total, percentage | 100.00% | 100.00% |
Note 7. Deposits (Details) - Ti
Note 7. Deposits (Details) - Time Deposit Maturities - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Time Deposit Maturities [Abstract] | ||
2019 | $ 34,964 | |
2020 | 113,501 | |
2021 | 24,395 | |
2022 | 10,820 | |
2023 | 119 | |
2024 | 5,856 | |
Total | $ 189,655 | $ 149,613 |
Note 8. Borrowed Funds and Su_2
Note 8. Borrowed Funds and Subordinated Notes (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Note 8. Borrowed Funds and Subordinated Notes (Details) [Line Items] | |||
Subordinated Debt | $ 12,000 | $ 12,000 | |
Overnight Advance [Member] | |||
Note 8. Borrowed Funds and Subordinated Notes (Details) [Line Items] | |||
Long-term Line of Credit | $ 7,000 | ||
Line of Credit Facility, Interest Rate During Period | 2.15% | ||
Short-term Debt [Member] | |||
Note 8. Borrowed Funds and Subordinated Notes (Details) [Line Items] | |||
Short-term Debt | $ 10,000 | ||
Debt Instrument, Term | 6 months | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.18% | ||
Debt Instrument, Maturity Date | Jan. 27, 2020 | ||
Federal Home Loan Bank Advances [Member] | |||
Note 8. Borrowed Funds and Subordinated Notes (Details) [Line Items] | |||
Long-term Line of Credit | $ 17,000 | 5,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | 29,600 | ||
Debt Instrument, Collateral Amount | 23,300 | 6,300 | |
Federal Reserve Bank Advances [Member] | |||
Note 8. Borrowed Funds and Subordinated Notes (Details) [Line Items] | |||
Long-term Line of Credit | 0 | $ 0 | |
Line of Credit Facility, Maximum Borrowing Capacity | 35,800 | ||
Notes Payable to Banks [Member] | |||
Note 8. Borrowed Funds and Subordinated Notes (Details) [Line Items] | |||
Debt Instrument, Maturity Date | May 11, 2028 | ||
Loans Payable to Bank | $ 1,900 | ||
Subordinated Debt [Member] | |||
Note 8. Borrowed Funds and Subordinated Notes (Details) [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.125% | 7.125% | |
Debt Instrument, Maturity Date | Mar. 31, 2028 | Jul. 20, 2027 | |
Subordinated Debt | $ 12,000 | $ 12,000 | |
Proceeds from Issuance of Subordinated Long-term Debt | $ 4,000 | $ 8,000 | |
Prime Rate [Member] | Notes Payable to Banks [Member] | |||
Note 8. Borrowed Funds and Subordinated Notes (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Note 9. Benefit Plans (Details)
Note 9. Benefit Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Note 9. Benefit Plans (Details) [Line Items] | |||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 94,000 | $ 65,000 | $ 268,000 | $ 240,000 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | ||||
Liability, Other Retirement Benefits | $ 11,000 | $ 11,000 | $ 71,000 | ||
Matching of Employee's Contribution on the First 1% [Member] | |||||
Note 9. 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] | |||||
Note 9. Benefit Plans (Details) [Line Items] | |||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0.50 |
Note 10. Income Taxes (Details)
Note 10. Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income Tax Expense (Benefit) | $ 446 | $ 279 | $ 1,217 | $ 655 | |
Effective Income Tax Rate Reconciliation, Percent | 25.00% | 12.00% | 17.50% | 8.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||
Deferred Tax Liabilities, Net | $ 407 | $ 407 | $ 534 |
Note 11. Stock Compensation P_3
Note 11. Stock Compensation Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 750,000 | 750,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 190,000 | 190,000 | 190,000 | ||
Share-based Payment Arrangement, Expense | $ 25,000 | $ 24,000 | $ 83,000 | $ 77,000 | |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 129,000 | $ 129,000 | |||
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 |
Note 11. Stock Compensation P_4
Note 11. Stock Compensation Plans (Details) - Share-Based Payment Arrangement, Options, Activity | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-Based Payment Arrangement, Options, Activity [Abstract] | |
Outstanding, Number of Shares Underlying Options | 190,000 |
Outstanding, Weighted Average Exercise Prices (in Dollars per share) | $ / shares | $ 5.37 |
Granted, Number of Shares Underlying Options | 0 |
Granted, Weighted Average Exercise Prices (in Dollars per share) | $ / shares | $ 0 |
Exercised, Number of Shares Underlying Options | 0 |
Exercised, Weighted Average Exercise Prices (in Dollars per share) | $ / shares | $ 0 |
Expired/forfeited, Number of Shares Underlying Options | 0 |
Expired/forfeited, Weighted Average Exercise Prices (in Dollars per share) | $ / shares | $ 0 |
Outstanding, Number of Shares Underlying Options | 190,000 |
Outstanding, Weighted Average Exercise Prices (in Dollars per share) | $ / shares | $ 5.37 |
Outstanding, Weighted Average Contractual Life | 7 years 219 days |
Exercisable, Number of Shares Underlying Options | 0 |
Exercisable, Weighted Average Exercise Prices (in Dollars per share) | $ / shares | $ 0 |
Available for grant, Number of Shares Underlying Options | 560,000 |
Note 12. Commitments and Cont_3
Note 12. Commitments and Contingencies (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Note 12. Commitments and Contingencies (Details) [Line Items] | ||
Security Deposit | $ 300 | $ 300 |
Chief Executive Officer [Member] | ||
Note 12. Commitments and Contingencies (Details) [Line Items] | ||
Employment Agreement, Term | 4 years | |
Chief Financial Officer [Member] | ||
Note 12. Commitments and Contingencies (Details) [Line Items] | ||
Employment Agreement, Term | 3 years |
Note 12. Commitments and Cont_4
Note 12. Commitments and Contingencies (Details) - Schedule of Line of Credit Facilities - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Loan commitments | $ 19,444 | $ 14,974 |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Undisbursed loan commitments | 19,272 | 14,812 |
Standby Letters of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Loan commitments | $ 172 | $ 162 |
Note 13. Related Parties (Detai
Note 13. Related Parties (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Note 13. Related Parties (Details) [Line Items] | |||||
Preferred Stock, Shares Outstanding (in Shares) | 80,338 | 80,338 | |||
Notes Receivable, Related Parties | $ 15,000 | $ 15,000 | $ 58,000 | ||
Cain Waters & Associates [Member] | |||||
Note 13. Related Parties (Details) [Line Items] | |||||
Related Party Ownership in Company | 31.00% | 31.00% | |||
Accounts Receivable, Related Parties | $ 144,000 | $ 144,000 | 198,000 | ||
Accounts Payable, Related Parties | 201,000 | 201,000 | 186,000 | ||
Certain Officers, Directors and their Affiliated Companies [Member] | |||||
Note 13. Related Parties (Details) [Line Items] | |||||
Due to Related Parties, Current | 3,200,000 | 3,200,000 | |||
Tectonic Management Services Agreement [Member] | |||||
Note 13. Related Parties (Details) [Line Items] | |||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 83,000 | 117,000 | $ 265,000 | ||
Due to Related Parties | $ 100,000 | ||||
Techtonic Advisors - CWA Services Agreement [Member] | Cain Waters & Associates [Member] | |||||
Note 13. Related Parties (Details) [Line Items] | |||||
Revenue from Related Parties | 392,000 | 366,000 | 1,100,000 | 1,000,000 | |
Compensation Expense for Forgiven Notes Including Interest [Member] | |||||
Note 13. Related Parties (Details) [Line Items] | |||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 15,000 | $ 20,000 | $ 44,000 | $ 58,000 | |
Series A Preferred Stock [Member] | |||||
Note 13. Related Parties (Details) [Line Items] | |||||
Preferred Stock, Shares Outstanding (in Shares) | 80,338 | 80,338 | 80,338 | ||
Preferred Stock, Dividend Rate, Percentage | 10.00% | 10.00% | |||
Preferred Stock, Liquidation Preference Per Share (in Dollars per share) | $ 100 | $ 100 |
Note 14. Regulatory Matters (De
Note 14. Regulatory Matters (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Jan. 01, 2015 |
Note 14. Regulatory Matters (Details) [Line Items] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval (in Dollars) | $ 9.9 | ||
Basel III Minimum Capital Ratio Requirments [Member] | |||
Note 14. Regulatory Matters (Details) [Line Items] | |||
Capital to Risk Weighted Assets | 10.00% | ||
Tier One Risk Based Capital to Risk Weighted Assets | 8.00% | ||
Tier One Leverage Capital to Average Assets | 5.00% | ||
Excess Tier One Risk Based Capital to Risk Weighted Assets | 6.50% | ||
undefined | 2.50% | ||
Basel III Minimum Capital Ratio Requirments [Member] | Phase in Percentage of Four Years, Each Year Percentage [Member] | |||
Note 14. Regulatory Matters (Details) [Line Items] | |||
undefined | 0.625% |
Note 14. Regulatory Matters (_2
Note 14. Regulatory Matters (Details) - Schedule of Regulatory Capital Ratio Requirments under Banking Regulations - Basel III Minimum Capital Ratio Requirments [Member] | Sep. 30, 2019 |
Note 14. 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 | 8.00% |
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 | 6.00% |
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 | 4.50% |
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 | 4.00% |
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% |
Note 14. Regulatory Matters (_3
Note 14. Regulatory Matters (Details) - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Consolidated Entities [Member] | ||
Total Capital (to Risk Weighted Assets) | ||
Total Capital (to Risk Weighted Assets), Actual, Amount | $ 38,249 | $ 28,067 |
Total Capital (to Risk Weighted Assets), Actual, Ratio | 15.10% | 12.41% |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 26,599 | $ 23,745 |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 10.50% | 9.875% |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 25,333 | $ 22,615 |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk Weighted Assets) | ||
Tier 1 Capital (to Risk Weighted Assets), Actual, Amount | $ 36,710 | $ 27,193 |
Tier 1 Capital (to Risk Weighted Assets), Actual, Ratio | 14.49% | 12.02% |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 21,533 | $ 19,222 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 8.50% | 7.875% |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 20,266 | $ 18,092 |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 8.00% | 8.00% |
Common Equity Tier 1 (to Risk Weighted Assets) | ||
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Amount | $ 19,460 | $ 19,159 |
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Ratio | 7.68% | 8.47% |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 17,733 | $ 19,222 |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 7.00% | 6.375% |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 16,466 | $ 14,699 |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets) | ||
Tier 1 Capital (to Average Assets), Actual, Amount | $ 36,710 | $ 27,193 |
Tier 1 Capital (to Average Assets), Actual, Ratio | 11.44% | 9.40% |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Amount | $ 12,835 | $ 11,570 |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized,Amount | $ 16,043 | $ 14,462 |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized, Ratio | 5.00% | 5.00% |
T. Bank, N. A. [Member] | ||
Total Capital (to Risk Weighted Assets) | ||
Total Capital (to Risk Weighted Assets), Actual, Amount | $ 38,452 | $ 30,116 |
Total Capital (to Risk Weighted Assets), Actual, Ratio | 15.33% | 13.45% |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 26,344 | $ 22,116 |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 10.50% | 9.875% |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 25,089 | $ 22,396 |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk Weighted Assets) | ||
Tier 1 Capital (to Risk Weighted Assets), Actual, Amount | $ 36,913 | $ 29,242 |
Tier 1 Capital (to Risk Weighted Assets), Actual, Ratio | 14.71% | 13.06% |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 21,326 | $ 17,637 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 8.50% | 7.875% |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 20,071 | $ 17,917 |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 8.00% | 8.00% |
Common Equity Tier 1 (to Risk Weighted Assets) | ||
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Amount | $ 36,913 | $ 29,242 |
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Ratio | 14.71% | 13.06% |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 17,562 | $ 14,278 |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 7.00% | 6.375% |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 16,308 | $ 14,557 |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets) | ||
Tier 1 Capital (to Average Assets), Actual, Amount | $ 36,913 | $ 29,242 |
Tier 1 Capital (to Average Assets), Actual, Ratio | 11.33% | 10.32% |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Amount | $ 13,036 | $ 11,334 |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized,Amount | $ 16,294 | $ 14,167 |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized, Ratio | 5.00% | 5.00% |
Note 15. Operating Segments (De
Note 15. Operating Segments (Details) - Schedule of Segment Reporting Information, by Segment - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Statement | |||||
Total interest income | $ 4,686 | $ 3,870 | $ 13,259 | $ 10,892 | |
Total interest expense | 1,649 | 1,155 | 4,567 | 3,055 | |
Provision for loan losses | 1,004 | 322 | 1,486 | 643 | |
Net-interest income | 2,033 | 2,393 | 7,206 | 7,194 | |
Non-interest income | 7,817 | 5,741 | 22,769 | 18,572 | |
Depreciation and amortization expense | 257 | 190 | 675 | 587 | |
All other non-interest expense | 7,806 | 5,625 | 22,356 | 17,045 | |
Income (loss) before income tax | 1,787 | 2,319 | 6,944 | 8,134 | |
Goodwill | 11,959 | 9,810 | 11,959 | 9,810 | |
Total assets | 357,665 | 296,432 | 357,665 | 296,432 | $ 311,662 |
Banking [Member] | |||||
Income Statement | |||||
Total interest income | 4,686 | 3,870 | 13,253 | 10,892 | |
Total interest expense | 1,430 | 906 | 3,862 | 2,351 | |
Provision for loan losses | 1,004 | 322 | 1,486 | 643 | |
Net-interest income | 2,252 | 2,642 | 7,905 | 7,898 | |
Non-interest income | 151 | 258 | 223 | 415 | |
Depreciation and amortization expense | 93 | 92 | 279 | 293 | |
All other non-interest expense | 1,991 | 1,619 | 5,720 | 5,326 | |
Income (loss) before income tax | 319 | 1,189 | 2,129 | 2,694 | |
Goodwill | 9,609 | 9,810 | 9,609 | 9,810 | |
Total assets | 347,017 | 289,051 | 347,017 | 289,051 | |
Financial Service, Other [Member] | |||||
Income Statement | |||||
Total interest income | 0 | 0 | 0 | 0 | |
Total interest expense | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Net-interest income | 0 | 0 | 0 | 0 | |
Non-interest income | 7,909 | 5,481 | 22,760 | 16,461 | |
Depreciation and amortization expense | 164 | 98 | 396 | 294 | |
All other non-interest expense | 5,606 | 3,852 | 16,087 | 11,410 | |
Income (loss) before income tax | 2,139 | 1,531 | 6,277 | 4,757 | |
Goodwill | 2,350 | 0 | 2,350 | 0 | |
Total assets | 10,380 | 6,515 | 10,380 | 6,515 | |
Parent Company [Member] | |||||
Income Statement | |||||
Total interest income | 0 | 0 | 6 | 0 | |
Total interest expense | 219 | 249 | 705 | 704 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Net-interest income | (219) | (249) | (699) | (704) | |
Non-interest income | (243) | 2 | (214) | 1,696 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
All other non-interest expense | 209 | 154 | 549 | 309 | |
Income (loss) before income tax | (671) | (401) | (1,462) | 683 | |
Goodwill | 0 | 0 | 0 | 0 | |
Total assets | $ 268 | $ 866 | $ 268 | $ 866 |
Note 16. Fair Value of Financ_3
Note 16. Fair Value of Financials Instruments (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Note 16. Fair Value of Financials Instruments (Details) [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 3,818,000 | $ 0 | ||
Impaired Financing Receivable, Related Allowance | 230,000 | 0 | ||
Servicing Asset at Fair Value, Additions | 81,000 | |||
Proceeds from Sale of Loans Held-for-sale | $ 3,700,000 | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Note 16. Fair Value of Financials Instruments (Details) [Line Items] | ||||
Number of Real Estate Properties Foreclosed | 1 | |||
Other Real Estate, Foreclosed Assets, and Repossessed Assets | $ 275,000 | |||
Valuation Allowance for Impairment of Recognized Servicing Assets, Period Increase (Decrease) | $ 122,000 | 162,000 | $ 292,000 | |
SBA [Member] | ||||
Note 16. Fair Value of Financials Instruments (Details) [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 3,818,000 | 0 | ||
Impaired Financing Receivable, Related Allowance | 230,000 | $ 0 | ||
Financing Receivable, after Allowance for Credit Loss | $ 3,600,000 | |||
Measurement Input, Discount Rate [Member] | SBA [Member] | ||||
Note 16. Fair Value of Financials Instruments (Details) [Line Items] | ||||
Servicing Asset, Measurement Input | 0.0001 |
Note 16. Fair Value of Financ_4
Note 16. Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
US Government Agencies Debt Securities [Member] | ||
Note 16. Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
U.S. government agencies | $ 7,806 | $ 9,008 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Note 16. 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 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Note 16. Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
U.S. government agencies | 7,806 | 9,008 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Note 16. 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 |
Collateralized Mortgage Backed Securities [Member] | ||
Note 16. Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | 2,002 | 2,496 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Note 16. Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | 0 | 0 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Note 16. Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | 2,002 | 2,496 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Note 16. Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | $ 0 | $ 0 |
Note 16. Fair Value of Financ_5
Note 16. Fair Value of Financials Instruments (Details) - Fair Value, by Balance Sheet Grouping - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Level 2 inputs: | ||
Securities available for sale, carrying amount | $ 9,808 | $ 11,504 |
Level 3 inputs: | ||
Securities held to maturity, carrying amount | 6,357 | 7,722 |
Securities held to maturity, estimated fair value | 6,357 | 7,722 |
Securities not readily marketable, carrying amount | 100 | 100 |
Securities not readily marketable, estimated fair value | 100 | 100 |
Loans, net, carrying amount | 284,825 | 234,033 |
Level 1 inputs: | ||
Non-interest bearing deposits, carrying amount | 29,504 | 41,142 |
Level 2 inputs: | ||
Interest bearing deposits, carrying amount | 54,001 | 59,618 |
Fair Value, Inputs, Level 1 [Member] | ||
Level 1 inputs: | ||
Cash and cash equivalents, carrying amount | 16,326 | 18,458 |
Cash and cash equivalents, estimated fair value | 16,326 | 18,458 |
Level 1 inputs: | ||
Non-interest bearing deposits, carrying amount | 29,504 | 41,142 |
Non-interest bearing deposits, estimated fair value | 29,504 | 41,142 |
Fair Value, Inputs, Level 2 [Member] | ||
Level 2 inputs: | ||
Securities available for sale, carrying amount | 9,808 | 11,504 |
Securities available for sale, estimated fair value | 9,808 | 11,504 |
Securities, restricted, carrying amount | 2,409 | 1,926 |
Securities, restricted, estimated fair value | 2,409 | 1,926 |
Loans held for sale, carrying amount | 12,911 | 16,345 |
Loans held for sale, estimated fair value | 13,968 | 17,732 |
Accrued interest receivable, carrying amount | 1,267 | 1,141 |
Accrued interest receivable, estimated fair value | 1,267 | 1,141 |
Level 2 inputs: | ||
Interest bearing deposits, carrying amount | 243,656 | 209,231 |
Interest bearing deposits, estimated fair value | 245,012 | 206,023 |
Borrowed funds, carrying amount | 29,000 | 18,915 |
Borrowed funds, estimated fair value | 29,000 | 18,915 |
Accrued interest payable, carrying amount | 389 | 571 |
Accrued interest payable, estimated fair value | 389 | 571 |
Fair Value, Inputs, Level 3 [Member] | ||
Level 3 inputs: | ||
Securities held to maturity, carrying amount | 6,357 | 7,722 |
Securities held to maturity, estimated fair value | 6,357 | 7,722 |
Loans, net, carrying amount | 284,825 | 234,033 |
Loans, net, estimated fair value | 282,468 | 232,508 |
Servicing asset, carrying amount | 874 | 1,467 |
Servicing asset, estimated fair value | $ 874 | $ 1,467 |
Note 18. Nolan Acquisition (Det
Note 18. Nolan Acquisition (Details) - The Nolan Company ("Nolan") [Member] | 1 Months Ended | |
Jan. 31, 2019USD ($) | Sep. 30, 2019USD ($) | |
Note 18. Nolan Acquisition (Details) [Line Items] | ||
Payments to Acquire Businesses, Gross | $ 2,500,000 | |
Number of States in which Entity Operates | 50 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 150,000 | |
Goodwill | 2,400,000 | $ 2,400,000 |
Other Commitment, Yearly Amount | $ 26,041 | |
Other Commitment, Term | 8 years |
Note 18. Nolan Acquisition (D_2
Note 18. Nolan Acquisition (Details) - Business Acquisition, Pro Forma Information - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Note 18. Nolan Acquisition (Details) - Business Acquisition, Pro Forma Information [Line Items] | ||||||||
Noninterest income | $ 7,817 | $ 5,741 | $ 22,769 | $ 18,572 | ||||
Noninterest expense | 8,063 | 5,815 | 23,031 | 17,632 | ||||
Net income | $ 1,341 | $ 2,192 | $ 2,194 | $ 2,040 | $ 1,912 | $ 3,527 | 5,727 | 7,479 |
The Nolan Company ("Nolan") [Member] | ||||||||
Note 18. Nolan Acquisition (Details) - Business Acquisition, Pro Forma Information [Line Items] | ||||||||
Noninterest income | 3,843 | |||||||
Noninterest expense | 2,884 | |||||||
Net income | $ 758 | |||||||
Pro Forma [Member] | The Nolan Company ("Nolan") [Member] | ||||||||
Note 18. Nolan Acquisition (Details) - Business Acquisition, Pro Forma Information [Line Items] | ||||||||
Noninterest income | 22,355 | |||||||
Noninterest expense | 20,625 | |||||||
Net income | $ 8,061 |