Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 12, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | TECTONIC FINANCIAL, INC. | |
Trading Symbol | TECTP | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 7,061,953 | |
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, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | true | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-38910 | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 82-0764846 | |
Entity Address, Address Line One | 16200 Dallas Parkway, Suite 190 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75248 | |
City Area Code | 972 | |
Local Phone Number | 720 - 9000 | |
Title of 12(b) Security | Series B preferred stock, $0.01 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 9,734 | $ 7,515 |
Interest-bearing deposits | 33,661 | 38,579 |
Federal funds sold | 568 | 774 |
Total cash and cash equivalents | 43,963 | 46,868 |
Securities available for sale | 17,560 | 17,396 |
Securities held to maturity | 19,658 | 5,776 |
Securities, restricted at cost | 2,432 | 2,431 |
Securities, not readily marketable | 100 | 100 |
Loans held for sale | 25,718 | 14,864 |
Loans, net of allowance for loan losses of $3,898 and $2,941, respectively | 428,569 | 397,601 |
Bank premises and equipment, net | 4,786 | 4,849 |
Other real estate | 517 | 0 |
Core deposit intangible, net | 828 | 979 |
Goodwill | 21,440 | 10,729 |
Deferred tax asset | 77 | 83 |
Other assets | 8,984 | 11,750 |
Total assets | 574,632 | 513,426 |
Demand deposits: | ||
Non-interest-bearing | 79,350 | 57,112 |
Interest-bearing | 140,316 | 116,278 |
Time deposits | 202,277 | 174,625 |
Total deposits | 421,943 | 348,015 |
Borrowed funds | 50,068 | 83,690 |
Subordinated notes | 12,000 | 12,000 |
Other liabilities | 8,764 | 9,708 |
Total liabilities | 492,775 | 453,413 |
SHAREHOLDERS’ EQUITY | ||
Preferred stock, value | 17 | 17 |
Common stock, $0.01 par value; 40,000,000 shares authorized; 7,021,953 and 6,568,750 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 70 | 66 |
Additional paid-in capital | 50,083 | 39,201 |
Retained earnings | 31,811 | 20,661 |
Accumulated other comprehensive (loss) income | (124) | 68 |
Total shareholders’ equity | 81,857 | 60,013 |
Total liabilities and shareholders’ equity | $ 574,632 | $ 513,426 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Statement of Financial Position [Abstract] | ||
Loans, allowance for loan losses (in Dollars) | $ 3,898 | $ 2,941 |
Preferred stock, shares issued | 1,725,000 | 1,725,000 |
Preferred stock, shares outstanding | 1,725,000 | 1,725,000 |
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,725,000 | 1,725,000 |
Preferred stock, non-cumulative | 9.00% | 9.00% |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 7,021,953 | 6,568,750 |
Common stock, shares outstanding | 7,021,953 | 6,568,750 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest Income | ||||
Loan, including fees | $ 8,508 | $ 5,139 | $ 20,663 | $ 14,374 |
Securities | 264 | 160 | 617 | 682 |
Federal funds sold | 0 | 0 | 1 | 2 |
Interest-bearing deposits | 12 | 11 | 33 | 91 |
Total interest income | 8,784 | 5,310 | 21,314 | 15,149 |
Interest Expense | ||||
Deposits | 619 | 973 | 1,867 | 3,444 |
Borrowed funds | 297 | 264 | 887 | 751 |
Total interest expense | 916 | 1,237 | 2,754 | 4,195 |
Net interest income | 7,868 | 4,073 | 18,560 | 10,954 |
Provision for loan losses | 641 | 445 | 1,210 | 1,709 |
Net interest income after provision for loan losses | 7,227 | 3,628 | 17,350 | 9,245 |
Non-interest Income | ||||
Trust income | 1,612 | 1,391 | 4,584 | 3,863 |
Gain on sale of loans | 0 | 290 | 101 | 722 |
Advisory income | 3,532 | 2,775 | 9,825 | 7,580 |
Brokerage income | 2,485 | 1,387 | 6,846 | 5,248 |
Service fees and other income | 1,632 | 1,809 | 5,345 | 4,769 |
Rental income | 88 | 85 | 264 | 232 |
Total non-interest income | 9,349 | 7,737 | 26,965 | 22,414 |
Non-interest Expense | ||||
Salaries and employee benefits | 6,331 | 4,741 | 17,889 | 13,693 |
Occupancy and equipment | 503 | 464 | 1,322 | 1,466 |
Trust expenses | 623 | 533 | 1,782 | 1,460 |
Brokerage and advisory direct costs | 509 | 517 | 1,506 | 1,563 |
Professional fees | 429 | 367 | 1,211 | 1,009 |
Data processing | 282 | 186 | 753 | 571 |
Other | 1,333 | 926 | 2,941 | 2,458 |
Total non-interest expense | 10,010 | 7,734 | 27,404 | 22,220 |
Income before Income Taxes | 6,566 | 3,631 | 16,911 | 9,439 |
Income tax expense | 1,417 | 733 | 3,747 | 2,026 |
Net Income | 5,149 | 2,898 | 13,164 | 7,413 |
Preferred stock dividends | 388 | 388 | 1,164 | 1,164 |
Net income available to common stockholders | $ 4,761 | $ 2,510 | $ 12,000 | $ 6,249 |
Earnings per common share: | ||||
Basic (in Dollars per share) | $ 0.68 | $ 0.38 | $ 1.79 | $ 0.95 |
Diluted (in Dollars per share) | $ 0.65 | $ 0.38 | $ 1.74 | $ 0.95 |
Weighted average common shares outstanding (in Shares) | 7,021,953 | 6,568,750 | 6,721,478 | 6,568,750 |
Weighted average diluted shares outstanding (in Shares) | 7,272,993 | 6,568,750 | 6,909,859 | 6,568,750 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 5,149 | $ 2,898 | $ 13,164 | $ 7,413 |
Other comprehensive income (loss): | ||||
Change in unrealized gain (loss) on investment securities available for sale | 15 | (8) | (244) | 82 |
Tax effect | 3 | (2) | (52) | 17 |
Other comprehensive income (loss) | 12 | (6) | (192) | 65 |
Comprehensive Income | $ 5,161 | $ 2,892 | $ 12,972 | $ 7,478 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Series A Preferred Stock [Member]Preferred Stock [Member] | Series B Preferred Stock [Member]Common Stock [Member] | Series B Preferred Stock [Member]Retained Earnings [Member] | Series B Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Dec. 31, 2019 | $ 17 | $ 66 | $ 39,050 | $ 11,288 | $ 54 | $ 50,475 | ||
Dividends paid on preferred stock | (388) | (388) | ||||||
Net income | 2,401 | 2,401 | ||||||
Other comprehensive (loss) income | 54 | 54 | ||||||
Stock based compensation | 24 | 24 | ||||||
Balance at Mar. 31, 2020 | 17 | 66 | 39,074 | 13,301 | 108 | 52,566 | ||
Balance at Dec. 31, 2019 | 17 | 66 | 39,050 | 11,288 | 54 | 50,475 | ||
Dividends paid on preferred stock | (1,164) | |||||||
Net income | 7,413 | |||||||
Other comprehensive (loss) income | 65 | |||||||
Balance at Sep. 30, 2020 | 17 | 66 | 39,112 | 17,537 | 119 | 56,851 | ||
Balance at Mar. 31, 2020 | 17 | 66 | 39,074 | 13,301 | 108 | 52,566 | ||
Dividends paid on preferred stock | (388) | (388) | ||||||
Net income | 2,114 | 2,114 | ||||||
Other comprehensive (loss) income | 17 | 17 | ||||||
Stock based compensation | 21 | 21 | ||||||
Balance at Jun. 30, 2020 | 17 | 66 | 39,095 | 15,027 | 125 | 54,330 | ||
Dividends paid on preferred stock | (388) | (388) | ||||||
Net income | 2,898 | 2,898 | ||||||
Other comprehensive (loss) income | (6) | (6) | ||||||
Stock based compensation | 17 | 17 | ||||||
Balance at Sep. 30, 2020 | 17 | 66 | 39,112 | 17,537 | 119 | 56,851 | ||
Balance at Dec. 31, 2020 | 17 | 66 | 39,201 | 20,661 | 68 | 60,013 | ||
Dividends paid on preferred stock | $ (388) | $ (388) | ||||||
Net income | 4,298 | 4,298 | ||||||
Other comprehensive (loss) income | (229) | (229) | ||||||
Stock based compensation | 85 | 85 | ||||||
Balance at Mar. 31, 2021 | 17 | 66 | 39,286 | 24,571 | (161) | 63,779 | ||
Balance at Dec. 31, 2020 | 17 | 66 | 39,201 | 20,661 | 68 | 60,013 | ||
Dividends paid on preferred stock | (1,164) | |||||||
Net income | 13,164 | |||||||
Other comprehensive (loss) income | (192) | |||||||
Balance at Sep. 30, 2021 | 17 | 70 | 50,083 | 31,811 | (124) | 81,857 | ||
Balance at Mar. 31, 2021 | 17 | 66 | 39,286 | 24,571 | (161) | 63,779 | ||
Dividends paid on preferred stock | (388) | (388) | ||||||
Dividends paid on common stock | (411) | (411) | ||||||
Net income | 3,717 | 3,717 | ||||||
Other comprehensive (loss) income | 25 | 25 | ||||||
Stock based compensation | 78 | 78 | ||||||
Balance at Jun. 30, 2021 | 17 | 66 | 39,364 | 27,489 | (136) | 66,800 | ||
Issuance of common stock in Integra acquisition | 4 | 10,646 | 10,650 | |||||
Dividends paid on preferred stock | (388) | (388) | ||||||
Dividends paid on common stock | (439) | (439) | ||||||
Net income | 5,149 | 5,149 | ||||||
Other comprehensive (loss) income | 12 | 12 | ||||||
Stock based compensation | 73 | 73 | ||||||
Balance at Sep. 30, 2021 | $ 17 | $ 70 | $ 50,083 | $ 31,811 | $ (124) | $ 81,857 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 13,164 | $ 7,413 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Provision for loan losses | 1,210 | 1,709 |
Depreciation and amortization | 253 | 328 |
Accretion of discount on loans | (50) | (65) |
Core deposit intangible amortization | 151 | 151 |
Securities premium amortization, net | 113 | 42 |
Origination of loans held for sale | (40,523) | (31,731) |
Proceeds from payments and sales of loans held for sale | 1,566 | 10,687 |
Gain on sale of loans | (101) | (722) |
Stock based compensation | 236 | 62 |
Deferred income taxes | 57 | 102 |
Servicing assets, net | 203 | 180 |
Net change in: | ||
Other assets | 2,838 | (1,042) |
Other liabilities | (1,197) | (2,139) |
Net cash used in operating activities | (22,080) | (15,025) |
Cash Flows from Investing Activities | ||
Acquisition of Integra Funding Solutions, LLC | (3,185) | 0 |
Purchase of securities held to maturity | (16,995) | 0 |
Purchase of securities available for sale | (228,000) | (239,043) |
Principal payments, calls and maturities of securities available for sale | 227,531 | 236,307 |
Principal payments of securities held to maturity | 3,061 | 542 |
Purchase of securities, restricted | (6,258) | (6,158) |
Proceeds from sale of securities, restricted | 6,257 | 6,145 |
Net change in loans | 30,085 | (102,178) |
Purchases of premises and equipment | (152) | (49) |
Net cash provided by (used in) investing activities | 12,344 | (104,434) |
Cash Flows from Financing Activities | ||
Net change in demand deposits | 43,742 | 76,078 |
Net change in time deposits | 27,652 | (4,209) |
Proceeds from borrowed funds | 298,961 | 347,972 |
Repayment of borrowed funds | (361,510) | (272,936) |
Dividends paid on Series B preferred stock | (1,164) | (1,164) |
Dividends paid on common stock | (850) | 0 |
Net cash provided by financing activities | 6,831 | 145,741 |
Net change in cash and cash equivalents | (2,905) | 26,282 |
Cash and cash equivalents at beginning of period | 46,868 | 20,203 |
Cash and cash equivalents at end of period | 43,963 | 46,485 |
Non Cash Transactions | ||
Transfers from loans to other real estate owned | 517 | 0 |
Lease liabilities incurred in exchange for right-of-use assets | 56 | 86 |
Transfers from loans held for sale to loans held to maturity | 28,186 | 9,025 |
Cash paid during the period for | ||
Interest | 3,008 | 4,419 |
Income taxes | $ 4,277 | $ 2,323 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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, factoring, third-party administration, recordkeeping and insurance services to individuals, small businesses and institutions across the United States. We operate through four main direct and indirect subsidiaries: (i) T Bancshares, Inc. (“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 banking 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, Texas 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 Nolan Company (“Nolan”), operating as a division within the Bank, offers third party administration (“TPA”) services, and Integra Funding Solutions, LLC (“Integra”), also operating as a division within the Bank, offers factoring services. The Bank’s technological capabilities, including worldwide free ATM withdrawals, sophisticated on-line banking capabilities, electronic funds transfer capabilities, and economical remote deposit solutions, allow most customers to be served regardless of their geographic location. The Bank serves its local geographic market which includes Dallas, Tarrant, Denton, Collin and Rockwall counties which encompass an area commonly referred to as the Dallas/Fort Worth Metroplex. The Bank also serves the dental and other health professional industries through a centralized loan and deposit platform that operates out of its main office in Dallas, Texas. In addition, the Bank serves the small business community by offering loans guaranteed by the U.S. 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 trust services. The Bank’s traditional fiduciary services clients primarily consist of clients of Cain, Watters & Associates, LLC (“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 12, Related Parties Basis of Presentation In the opinion of management, all adjustments that were normal and recurring in nature, and considered necessary, have been included for the fair presentation of the Company’s consolidated financial position and results of operations. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of results that may be expected for the full year ending December 31, 2021. Use of Estimates. Accounting Changes, Reclassifications and Restatements. Accounting Policy Factored Receivables Integra, operating as a division of the Bank, purchases invoices on completed work from its factoring clients. Integra also makes, from time to time, short-term advances to its clients on transportation contracts for upcoming loads or, to a much lesser extent, makes over-advances on the existing purchased invoices. Funds are advanced to the client based on the applicable advance rate, less fees, as agreed to in each individual factoring agreement. The gross amount (face value) of the invoices purchased are recorded by Integra as factored receivables, and the unadvanced portions of the invoices purchased, less discount and origination fees, are considered deferred client reserves and recorded as other liabilities, in the Company’s consolidated balance sheets. The deferred client reserves are held to settle any payment disputes or collection short payments, and become reserves due to client when the receivables are collected and may be used to pay clients’ obligations to various third parties as directed by the client, or are periodically withdrawn by clients, and are reported as deposits in the Company’s consolidated balance sheets. Unearned factoring fees and unearned net origination fees are deferred revenue and recognized as interest income in the Company’s consolidated income statements over the weighted average collection period for the entire portfolio of factored receivables. Subsequent factoring fees are recognized in interest income as incurred by the client and deducted from the clients’ reserve balances. Other factoring-related fees, which include ACH and wire transfer fees, fuel card funding fees, carrier payment fees, fuel advance fees, and other similar fees, are recognized as incurred and are reported by the Company as non-interest income. Earnings per Share Three months ended September 30, Nine months ended September 30, (In thousands, except per share data) 2021 2020 2021 2020 Net income available to common shareholders $ 4,761 $ 2,510 $ 12,000 $ 6,249 Average shares outstanding 7,022 6,569 6,721 6,569 Effect of dilutive shares 251 - 189 - Average diluted shares outstanding 7,273 6,569 6,910 6,569 Basic earnings per share $ 0.68 $ 0.38 $ 1.79 $ 0.95 Diluted earnings per share $ 0.65 $ 0.38 $ 1.74 $ 0.95 As of September 30, 2021, options to purchase 190,000 shares of common stock, with a weighted average exercise price of $5.62, were included in the computation of diluted net earnings per share, and options to purchase 40,000 shares of common stock, with a weighted average exercise price of $10.00, were excluded from the computation of diluted net earnings per share because their effect was anti-dilutive. In addition, as of September 30, 2021, 210,000 shares of restricted stock grants with a grant date fair value of $4.81 per share which vest from 2023 through 2025 were included in the diluted earnings per share calculation. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 2. Securities A summary of amortized cost and fair value of securities is presented below. September 30, 2021 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 15,897 $ 8 $ 214 $ 15,691 Mortgage-backed securities 1,820 49 - 1,869 Total securities available for sale $ 17,717 $ 57 $ 214 $ 17,560 Securities held to maturity Property Assessed Clean Energy $ 2,735 $ - $ - $ 2,735 Public Improvement District & Tax Increment Reinvestment Zone 16,923 - - 16,923 Total securities held to maturity $ 19,658 $ - $ - $ 19,658 Securities, restricted: Other $ 2,432 $ - $ - $ 2,432 Securities not readily marketable $ 100 $ - $ - $ 100 December 31, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 14,936 $ 38 $ 25 $ 14,949 Mortgage-backed securities 2,373 74 - 2,447 Total securities available for sale $ 17,309 $ 112 $ 25 $ 17,396 Securities held to maturity Property Assessed Clean Energy $ 5,776 $ - $ - $ 5,776 Securities, restricted: Other $ 2,431 $ - $ - $ 2,431 Securities not readily marketable $ 100 $ - $ - $ 100 Securities available for sale consist of U.S. government agency securities and mortgage-backed securities guaranteed by U.S. government agencies. Securities held to maturity consist of Property Assessed Clean Energy (“PACE”) and Public Improvement District/Tax Increment Reinvestment Zone (“PID/TIRZ”) investments. These investment contracts or bonds located in Texas, California and Florida, originate under a contractual obligation between the property owners, the local county or city administration, and a third-party administrator and sponsor. PACE assessments are created to fund the purchase and installation of energy saving improvements to the property such as solar panels. PID/TIRZ assessments are used to pay for development costs, in this case of a residential subdivision. Generally, as a property assessment, the total assessment is repaid in installments over a period of 5 to 32 years by the then current property owner(s). Each installment is collected by the County or City Tax Collector where the property is located. The assessments are an obligation of the property. Securities, restricted consist of Federal Reserve Bank of Dallas (“FRB”) and Federal Home Loan Bank of Dallas (“FHLB”) stock, which are carried at cost. As of September 30, 2021 and December 31, 2020, securities available for sale with a fair value of $202,000 and $554,000, respectively, were pledged against trust deposit balances held at the Bank. At each of September 30, 2021 and December 31, 2020, the Bank held FRB stock in the amount of $1.2 million. The Bank held FHLB stock in the amount of $1.2 million at each of September 30, 2021 and December 31, 2020. The FRB stock and FHLB stock were classified as restricted securities. As of September 30, 2021 and December 31, 2020, 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, 2021: Less than 12 months 12 months or longer Total (In thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ 9,055 $ 115 $ 5,897 $ 99 $ 14,952 $ 214 The number of investment positions in this unrealized loss position totaled ten as of September 30, 2021. The Company does not believe these unrealized losses are “other than temporary” as (i) it does not have the intent to sell the securities prior to recovery and/or maturity and, (ii) it is more likely than not that the Company will not have to sell the securities prior to recovery and/or maturity. Accordingly, as of September 30, 2021, no impairment loss has been realized in the Company’s consolidated statements of income. The amortized cost and estimated fair value of securities as of September 30, 2021 are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities are shown separately since they are not due at a single maturity date. Available for Sale Held to Maturity (In thousands) Amortized Cost Estimated Amortized Cost Estimated Fair Value Due in one year or less $ 21 $ 21 $ 2,678 $ 2,678 Due after one year through five years 1,995 1,960 - - Due after five years through ten years 10,193 10,096 - - Due after ten years 3,688 3,614 16,980 16,980 Mortgage-backed securities 1,820 1,869 - - Total $ 17,717 $ 17,560 $ 19,658 $ 19,658 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3. Loans and Allowance for Loan Losses Major classifications of loans held for investment are as follows: (In thousands) September 30, 2021 December 31, 2020 Commercial and industrial $ 80,921 $ 79,864 Consumer installment 2,333 10,259 Real estate – residential 4,975 4,319 Real estate – commercial 64,758 44,484 Real estate – construction and land 3,562 8,396 SBA: SBA 7(a) guaranteed 149,881 164,687 SBA 7(a) unguaranteed 51,393 52,179 SBA 504 34,831 35,553 USDA 804 801 Factored Receivables 39,001 - Other 8 - Gross Loans 432,467 400,542 Less: Allowance for loan losses 3,898 2,941 Net loans $ 428,569 $ 397,601 During the second quarter of 2020, the Company began participating in the Paycheck Protection Program (“PPP”) which was established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in response to the COVID-19 pandemic and administered by the SBA. The PPP loans may be forgiven by the SBA and are 100 percent guaranteed by the SBA. Therefore, no allowance for loan losses is allocated to PPP loans. Included in SBA 7(a) guaranteed loans at September 30, 2021, were $49.2 million of loans originated under the PPP. As of September 30, 2021, our loan portfolio included $67.5 million of loans, approximately 15.6% of our total funded loans (17.6% of total funded loans, net of PPP loans) to the dental industry, as compared to $67.2 million of loans, or 16.8% of total funded loans (21.1% of total funded loans, net of PPP loans), at December 31, 2020. The Bank believes that these loans are to credit worthy borrowers and are diversified geographically. The Company serves the small business community by offering loans promulgated under the SBA’s 7(a) and 504 loan programs, and loans guaranteed by the USDA. SBA 7(a) and USDA loans are typically guaranteed by each agency in amounts ranging from 75% to 80% of the principal balance. For SBA construction loans, the Company records the guaranteed funded portion of the loans as held for sale. When the SBA loans are fully funded, the Company may sell the guaranteed portion into the secondary market, on a servicing-retained basis, or reclassify from loans held for sale to loans held for investment if the Company determines that holding these loans provide better long-term risk adjusted returns than selling the loans. In calculating gain on the sale of loans, the Company performs an allocation based on the relative fair values of the sold portion and retained portion of the loan. The Company’s assumptions are validated by reference to external market information. The Company had $25.7 million and $14.9 million of non-PPP SBA loans held for sale as of September 30, 2021 and December 31, 2020, respectively. For the nine months ended September 30, 2021, the Company sold one non-PPP SBA loan during the second quarter for $1.1 million, resulting in a gain on sale of loans of $101,000. For the three and nine months ended September 30, 2021, the Company elected to reclassify $13.1 million and $28.2 million, respectively, of the SBA 7(a) loans held for sale to loans held for investment. 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 SBA 7(a) loan guaranty program and the SBA 504 loan program in conjunction with junior lien financing from a Certified Development Company (“CDC”). The SBA has designated the Bank as a “Preferred Lender.” As an SBA Preferred Lender, the Bank has been delegated loan approval, closing and most servicing and liquidation authority from the SBA. The SBA 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 SBA 7(a) loan is approved and funded by a qualified lender, partially guaranteed by the SBA and subject to applicable regulations. In general, the SBA guarantees up to 75% (100% for PPP loans) of the loan amount depending on loan size. The Company is required by the SBA to service the loan and retain a contractual minimum of 5% on all SBA 7(a) loans, but generally retains 25% (the unguaranteed portion). The servicing spread is 1% of the guaranteed portion of the loan that is sold in the secondary market. Included in the SBA 7(a) loans reflected in this Form 10-Q are the PPP loans originated by the Company and outstanding as of September 30, 2021. The SBA 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 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, 2021 December 31, 2020 Non-accrual loans: Commercial and industrial $ 94 $ 158 Real estate – commercial 151 - SBA guaranteed 4,233 1,118 SBA unguaranteed 1,212 517 Total $ 5,690 $ 1,793 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. The provisions of the CARES Act include an election to temporarily suspend accounting for troubled debt restructurings in certain circumstances, such as extensions or deferrals, related to the COVID-19 pandemic. This temporary suspension may only be applied to modifications of loans that were not more than 30 days past due as of December 31, 2019. If elected, the temporary suspension may be applied to eligible modifications executed during the period beginning on March 1, 2020 and, as extended by the Consolidated Appropriations Act, 2021, ending on the earlier of January 1, 2022 or 60 days after the termination of the COVID-19 national emergency. In 2020, federal banking regulators, in consultation with the Financial Accounting Standards Board (“FASB”), issued interagency statements that included similar guidance on their approach for the accounting of loan modifications in light of the economic impact of the COVID-19 pandemic that provide that short-term modifications and additional accommodations made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings. The Company elected to adopt these provisions of the CARES Act. At September 30, 2021, there were six loans in COVID-19-related deferment with an aggregate outstanding balance of approximately $10.3 million. At December 31, 2020, there were 11 loans in COVID-19-related deferment with an aggregate outstanding balance of approximately $4.3 million. The increase in the number and amount of loans with COVID-19-related deferrals is primarily in the SBA segment of the Bank’s loan portfolio. As of September 30, 2021 and December 31, 2020, there were no loans identified as troubled debt restructurings. There were no new troubled debt restructurings during the nine months ended September 30, 2021 and the year ended December 31, 2020. 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, 2021 Nine Months Ended Commercial and industrial $ 94 $ 94 $ - $ 94 $ - $ 76 $ 2 SBA 6,962 6,699 - 6,699 - 6,615 21 Total $ 7,056 $ 6,793 $ - $ 6,793 $ - $ 6,691 $ 23 December 31, 2020 Year Ended Commercial and industrial $ - $ - $ - $ - $ - $ 10 $ - Real estate – construction and land - - - - - 313 - SBA 6,649 2,976 - 2,976 - 3,206 61 Total $ 6,649 $ 2,976 $ - $ 2,976 $ - $ 3,529 $ 61 Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The Company’s past due loans are as follows: Total 90 30-89 Days 90 Days or Total Total Total Days Past Due (In thousands) Past Due More Past Due Past Due Current Loans Still Accruing September 30, 2021 Commercial and industrial $ - $ - $ - $ 80,921 $ 80,921 $ - Consumer installment - - - 2,333 2,333 - Real estate – residential - - - 4,975 4,975 - Real estate – commercial - 72 72 64,686 64,758 - Real estate – construction and land - - - 3,562 3,562 - SBA 63 3,033 3,096 233,009 236,105 - USDA - - - 804 804 - Factored Receivables 2,096 352 2,448 36,553 39,001 352 Other - - - 8 8 - Total $ 2,159 $ 3,457 $ 5,616 $ 426,851 $ 432,467 $ 352 December 31, 2020 Commercial and industrial $ - $ - $ - $ 79,864 $ 79,864 $ - Consumer installment - - - 10,259 10,259 - Real estate – residential - - - 4,319 4,319 - Real estate – commercial 121 158 279 44,205 44,484 - Real estate – construction and land - - - 8,396 8,396 - SBA - 1,635 1,635 250,784 252,419 - USDA - - - 801 801 - Total $ 121 $ 1,793 $ 1,914 $ 398,628 $ 400,542 $ - As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including internal credit risk based on past experiences as well as external statistics and factors. Loans are graded in one of six categories: (i) pass, (ii) pass-watch, (iii) special mention, (iv) substandard, (v) doubtful, or (vi) loss. Loans graded as loss are charged-off. The classifications of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on credits quarterly. No significant changes were made to the loan risk grading system definitions and allowance for loan loss methodology during the past year. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit. The Company’s methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Credits rated pass are acceptable loans, appropriately underwritten, bearing an ordinary risk of loss to the Company. Loans in this category are loans to highly credit worthy borrowers with financial statements presenting a good primary source as well as an adequate secondary source of repayment. Credits rated pass-watch loans have been determined to require enhanced monitoring for potential weaknesses which require further investigation. They have no significant delinquency in the past twelve months. This rating causes the loan to be actively monitored with greater frequency than pass loans and allows appropriate downgrade transition if verifiable adverse events are confirmed. This category may also include loans that have improved in credit quality from special mention but are not yet considered pass loans. Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness; however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly. Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Guaranteed portions of SBA loans graded substandard are generally on non-accrual due to the limited amount of interest covered by the guarantee, usually 60 days maximum. However, there typically will be no exposure to loss on the principal amount of these guaranteed portions of the loan. Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Loans classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this asset even though partial recovery may be affected in the future. The following table summarizes the Company’s internal ratings of its loans as of the dates indicated: Pass- Special (In thousands) Pass Watch Mention Substandard Doubtful Total September 30, 2021 Commercial and industrial $ 80,493 $ 334 $ - $ 94 $ - $ 80,921 Consumer installment 2,333 - - - - 2,333 Real estate – residential 4,764 - - 211 - 4,975 Real estate – commercial 64,607 - - 151 - 64,758 Real estate – construction and land 3,562 - - - - 3,562 SBA 218,010 13,117 2,079 2,899 - 236,105 USDA 804 - - - - 804 Factored Receivables 39,001 - - - - 39,001 Other 8 - - - - 8 Total $ 413,582 $ 13,451 $ 2,079 $ 3,355 $ - $ 432,467 December 31, 2020 Commercial and industrial $ 79,134 $ 730 $ - $ - $ - $ 79,864 Consumer installment 10,259 - - - - 10,259 Real estate – residential 4,319 - - - - 4,319 Real estate – commercial 44,326 - - 158 - 44,484 Real estate – construction and land 8,396 - - - - 8,396 SBA 243,533 5,242 1,794 1,850 - 252,419 USDA 801 - - - - 801 Total $ 390,768 $ 5,972 $ 1,794 $ 2,008 $ - $ 400,542 The activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2021 and 2020 is presented below. Management has evaluated the adequacy of the allowance for loan losses by estimating the losses in various categories of the loan portfolio. (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Other Total Three months ended: September 30, 2021 Beginning Balance $ 1,129 $ 50 $ 76 $ 738 $ 105 $ 1,190 $ 19 $ - $ - $ 3,307 Provision for loan losses (57 ) (20 ) (8 ) 131 (57 ) 11 - 641 - 641 Charge-offs - - - - - - - (73 ) - (73 ) Recoveries - - - - - 3 - 20 - 23 Net recoveries (charge-offs) - - - - - 3 - (53 ) - (50 ) Ending balance $ 1,072 $ 30 $ 68 $ 869 $ 48 $ 1,204 $ 19 $ 588 $ - $ 3,898 September 30, 2020 Beginning Balance $ 1,099 $ 90 $ 58 $ 687 $ 179 $ 435 $ - $ - $ - $ 2,548 Provision for loan losses (168 ) (33 ) (15 ) (129 ) (71 ) 842 19 - - 445 Charge-offs - - - - - (57 ) - - - (57 ) Recoveries - - - - - 2 - - - 2 Net charge-offs - - - - - (55 ) - - - (55 ) Ending balance $ 931 $ 57 $ 43 $ 558 $ 108 $ 1,222 $ 19 $ - $ - $ 2,938 (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Other Total Nine months ended: September 30, 2021 Beginning Balance $ 928 $ 91 $ 52 $ 527 $ 100 $ 1,225 $ 18 $ - $ - $ 2,941 Provision for loan losses 144 (61 ) 16 342 (52 ) 179 1 641 - 1,210 Charge-offs - - - - - (215 ) - (73 ) - (288 ) Recoveries - - - - - 15 - 20 - 35 Net charge-offs - - - - - (200 ) - (53 ) - (253 ) Ending balance $ 1,072 $ 30 $ 68 $ 869 $ 48 $ 1,204 $ 19 $ 588 $ - $ 3,898 September 30, 2020 Beginning Balance $ 501 $ 27 $ 22 $ 347 $ 76 $ 435 $ - $ - $ - $ 1,408 Provision for loan losses 397 30 21 211 32 999 19 - - 1,709 Charge-offs - - - - - (218 ) - - - (218 ) Recoveries 33 - - - - 6 - - - 39 Net recoveries (charge-offs) 33 - - - - (212 ) - - - (179 ) Ending balance $ 931 $ 57 $ 43 $ 558 $ 108 $ 1,222 $ 19 $ - $ - $ 2,938 The Company’s allowance for loan losses as of September 30, 2021 and December 31, 2020 by portfolio segment and detailed on the basis of the Company’s impairment methodology was as follows: (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Other Total September 30, 2021 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 1,072 30 68 869 48 1,204 19 588 - 3,898 Ending balance $ 1,072 $ 30 $ 68 $ 869 $ 48 $ 1,204 $ 19 $ 588 $ - $ 3,898 December 31, 2020 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 928 91 52 527 100 1,225 18 - - 2,941 Ending balance $ 928 $ 91 $ 52 $ 527 $ 100 $ 1,225 $ 18 $ - $ - $ 2,941 (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Other Total September 30, 2021 Loans individually evaluated for impairment $ 94 $ - $ - $ - $ - $ 6,699 $ - $ - $ - $ 6,793 Loans collectively evaluated for impairment 80,827 2,333 4,975 64,758 3,562 229,406 804 39,001 8 425,674 Ending balance $ 80,921 $ 2,333 $ 4,975 $ 64,758 $ 3,562 $ 236,105 $ 804 $ 39,001 $ 8 $ 432,467 December 31, 2020 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 2,976 $ - $ - $ - $ 2,976 Loans collectively evaluated for impairment 79,864 10,259 4,319 44,484 8,396 249,443 801 - - 397,566 Ending balance $ 79,864 $ 10,259 $ 4,319 $ 44,484 $ 8,396 $ 252,419 $ 801 $ - $ - $ 400,542 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 4. 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 2021 and 2024 with initial non-cancellable terms in excess of one year. We recognize our operating leases on our consolidated balance sheet. Right-of-use assets represent our right to utilize the underlying asset during the lease term, while lease liability represents the obligation to make periodic lease payments over the life of the lease. As of September 30, 2021 and December 31, 2020, right-of-use assets totaled $593,000 and $963,000, respectively, and are reported as other assets on our accompanying consolidated balance sheets. The related lease liabilities totaled $657,000 and $1.0 million, respectively, and are reported in other liabilities on our accompanying consolidated balance sheet. As of September 30, 2021, the weighted average remaining lease term is sixteen months, and the weighted average discount rate is 4.52%. As of September 30, 2021, the minimum rental commitments under these noncancelable operating leases are as follows (in thousands): 2021 $ 193 2022 403 2023 76 2024 7 Total minimum rental payments 679 Less: Interest (22 ) Present value of lease liabilities $ 657 The Company currently receives rental income from nine 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, 2021 were $814,000 through 2027. |
Goodwill and Core Deposit Intan
Goodwill and Core Deposit Intangible | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 5. Goodwill and Core Deposit Intangible Goodwill and core deposit intangible assets were as follows: (In thousands) September 30, 2021 December 31, 2020 Goodwill $ 21,440 $ 10,729 Core deposit intangible, net 828 979 During the three months ended September 30, 2021, the Company recorded goodwill of $10.7 million in connection with the acquisition of Integra. (See Note 17 for details of acquisition). Core deposit intangible is amortized on a straight line basis over the initial estimated lives of the deposits, which range from five to twelve years. The core deposit intangible amortization totaled $50,000 and $151,000 for the three and nine months ended September 30, 2021 and 2020, respectively. The carrying basis and accumulated amortization of the core deposit intangible as of September 30, 2021 and December 31, 2020 were as follows: (In thousands) September 30, 2021 December 31, 2020 Gross carrying basis $ 1,708 $ 1,708 Accumulated amortization (880 ) (729 ) Net carrying amount $ 828 $ 979 The estimated amortization expense of the core deposit intangible remaining as of September 30, 2021 is as follows: (In thousands) 2021 remaining $ 51 2022 208 2023 210 2024 210 2025 149 Total $ 828 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2021 | |
Statistical Disclosure for Banks [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | Note 6. Deposits Deposits were as follows : (In thousands, except percentages) September 30, 2021 December 31, 2020 Non-interest bearing demand $ 79,350 19 % $ 57,112 16 % Interest-bearing demand (NOW) 6,452 1 5,060 2 Money market accounts 126,371 30 105,079 30 Savings accounts 7,493 2 6,139 2 Time deposits 202,277 48 174,625 50 Total $ 421,943 100 % $ 348,015 100 % Time deposits of $250,000 and over totaled $82.6 million and $59.6 million as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, the scheduled maturities of time deposits were as follows: (In thousands) 2021 $ 34,727 2022 129,383 2023 24,314 2024 7,489 2025 5,503 Thereafter 861 Total $ 202,277 The aggregate amount of demand deposit overdrafts that have been reclassified as loans as of September 30, 2021 and December 31, 2020 was insignificant. |
Borrowed Funds and Subordinated
Borrowed Funds and Subordinated Notes | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 7. Borrowed Funds and Subordinated Notes The Company has a blanket lien credit line with the FHLB with borrowing capacity of $44.3 million secured by commercial loans. The Company determines its borrowing needs and utilizes overnight advance accordingly at varying terms. The Company had no borrowings with FHLB as of September 30, 2021 and December 31, 2020. The Company also has a credit line with the FRB with borrowing capacity of $22.4 million, which is secured by commercial loans. The Company had no borrowings under this line from the FRB at September 30, 2021 and December 31, 2020. As part of the CARES Act, the FRB offered secured discounted borrowings to banks who originated PPP loans through the Paycheck Protection Program Liquidity Facility (“PPPLF”). At September 30, 2021, the Bank pledged $50.1 million of PPP loans to the FRB under the PPPLF to borrow $50.1 million of funds at a rate of 0.35%, with maturities ranging from April 2022 through May 2026. PPP loans pledged as collateral for the PPPLF are excluded from the average assets used in the Company’s leverage ratio calculation. As of September 30, 2021 and December 31, 2020, 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 an interest rate of 7.125% payable semi-annually and maturing on March 31, 2028. The subordinated notes are unsecured and subordinated in right of payment to the payment of our existing and future senior indebtedness and structurally subordinated to all existing and future indebtedness of our subsidiaries. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Benefits [Text Block] | Note 8. 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, Tectonic Advisors and the Company. Under the plans, the Company matches 100% of the employee’s contribution on the first 1% of the employee’s compensation, and 50% of the employee’s contribution on the next 5% of the employee’s compensation. An eligible employee may contribute up to the annual maximum contribution allowed for a given year under guidance from the Internal Revenue Service. At its discretion, the Company may also make additional annual contributions to the plans. Any discretionary contributions are allocated to employees in the proportion of employee contributions to the total contributions of all participants in the plans. No discretionary contributions were made during the three and nine months ended September 30, 2021 and 2020. The amount of employer contributions charged to expense under the two plans was $117,000 and $392,000 for the three and nine months ended September 30, 2021, respectively, and $96,000 and $321,000 for the three and nine months ended September 30, 2020, respectively, and is included in salaries and employee benefits on the consolidated statements of income. There was no accrual payable to the plans as of September 30, 2021 and December 31, 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 9. Income Taxes Income tax expense was $1.4 million and $3.7 million for the three and nine months ended September 30, 2021, respectively, and $733,000 and $2.0 million for the three and nine months ended September 30, 2020, respectively. The Company’s effective income tax rate was 21.6% and 22.2% for the three and nine months ended September 30, 2021, respectively, compared to 20.2% and 21.5% for the same periods in the prior year, respectively. Net deferred tax assets totaled $77,000 and $83,000 at September 30, 2021 and December 31, 2020, respectively. The Company files U.S. federal and state income tax returns. |
Stock Compensation Plans
Stock Compensation Plans | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | Note 10. 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 was amended and restated by the Company and its shareholders effective March 27, 2019 in connection with the Company’s initial public offering. The Plan is administered by the Compensation Committee of the Company’s board of directors and authorizes the granting of stock 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 stock 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 stock option award is estimated on the date of grant by a third party using a closed form option valuation (Black-Scholes) model. The fair value of each grant award was estimated on the date of grant by a third party using the market approach based on the application of latest 12-month Company metrics to guideline public company multiples. During the three and nine months ended September 30, 2021, 40,000 shares of restricted stock with an exercise price of $10.00 and an intrinsic value of $6.92 were granted on September 27, 2021, with a contract life through December 31, 2021. These shares of restricted stock vested immediately, and once exercised, the shares are subject to a right of repurchase by the Company under certain circumstances through December 31, 2023. No other shares of restricted stock were issued during the three and nine months ended September 30, 2020. There were no forfeitures or exercises in the Plan during the three and nine months ended September 30, 2021 and 2020. The number of options outstanding as of September 30, 2021 and December 31, 2020 was 230,000 and 190,000, respectively, and the weighted average exercise price as of September 30, 2021 and December 31, 2020 was $6.17 and $5.37, respectively. The weighted average contractual life as of September 30, 2021 and December 31, 2020 was 5.03 years and 6.37 years, respectively. Stock options outstanding at the end of the period had immaterial aggregate intrinsic values. The weighted-average grant date fair value of the options as of September 30, 2021 and December 31, 2020 was $5.97 and $1.94, respectively. As of September 30, 2021, all 230,000 stock options outstanding were vested, and unrecognized compensation cost totals $350,000 related to the right of repurchase period. For the three and nine months ended September 30, 2021, no options were exercised. The Company recorded compensation expense on a straight-line basis over the vesting periods, and for the 40,000 shares of restricted stock granted September 27, 2021, over the right of repurchase period. The Company recorded salaries and employee benefits expense on our consolidated statements of income in connection with the Plan of $2,000 and $26,000 for the three and nine months ended September 30, 2021, respectively, and $17,000 and $63,000 for the three and nine months ended September 30, 2020, respectively, related to the stock options. The Company granted restricted stock awards totaling 210,000 shares of common stock on September 30, 2020. The vesting schedules vary by award, with all of the awards vesting over a three-year period from 2023 through 2025. As of September 30, 2021, all 210,000 awarded shares were outstanding, and the grant date fair value was $4.81. The weighted average contractual life as of September 30, 2021 and December 31, 2020 was 2.71 years and 3.46 years, respectively. The Company is recording compensation expense on a straight-line basis over the respective vesting periods. The Company recorded salaries and employee benefits expense on our consolidated statements of income in connection with the Plan of $71,000 and $210,000 for the three and nine months ended September 30, 2021, respectively, related to the restricted stock awards. No salaries and benefits expense was recognized related to the restricted stock awards during the three and nine months ended September 30, 2020. As of September 30, 2021, there was $705,000 of unrecognized compensation cost related to the stock awards. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 11. 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, 2021 December 31, 2020 Undisbursed loan commitments $ 22,978 $ 19,880 Standby letters of credit 282 162 Total $ 23,260 $ 20,042 The Company is involved in various regulatory inspections, inquiries, investigations and proceedings, and litigation matters that arise from time to time in the ordinary course of business. The process of resolving matters through litigation or other means is inherently uncertain, and it is possible that an unfavorable resolution of these matters, will adversely affect the Company, its results of operations, financial condition and cash flows. The Company’s regular practice is to expense legal fees as services are rendered in connection with legal matters, and to accrue for liabilities when payment is probable. The Company, through its wholly owned subsidiary Sanders Morris, has uncommitted financing arrangements with clearing brokers that finance its customer accounts, certain broker-dealer balances, and firm trading positions. Although these customer accounts and broker-dealer balances are not reflected on the consolidated balance sheets for financial reporting purposes, Sanders Morris has generally agreed to indemnify these clearing brokers for losses they may sustain in connection with the accounts, and therefore, retains risk on these accounts. Sanders Morris is required to maintain certain cash or securities on deposit with its clearing brokers. Deposits with clearing organizations were $250,000 as of September 30, 2021 and December 31, 2020. Employment Agreements The Company is party to amended and restated employment agreements with Patrick Howard, President and Chief Operating Officer of the Company, and Ken Bramlage, Executive Vice President and Chief Financial Officer of the Company. In addition, the Company entered into an employment agreement with A. Haag Sherman, Chief Executive Officer of the Company, in connection with the Company’s merger with Tectonic Holdings and its initial public offering. Messrs. Sherman and Howard’s employment agreements have a four year term and Mr. Bramlage’s employment agreement has a three year term. In connection with the acquisition of Integra, the Bank entered into an employment agreement with Randall W. Woods, Chief Executive Officer of the Integra division of the Bank. Mr. Woods employment agreement has a five year term. Each employment agreement is automatically renewable for an additional one-year term unless either party elects not to renew. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 12. Related Parties Advisors service agreements: Tectonic and Cain Watters are investing an amount equal to approximately 25 basis points, shared ratably, on the portion of assets falling under this service agreement above $2.5 billion, which as of September 30, 2021 represented approximately 1.8% of assets under the agreement, towards marketing costs to provide an incentive to Cain Watters and its planners to generate more asset growth to be managed by Tectonic under its service agreement with Cain Watters. The total increase in marketing costs under this initiative totaled $19,000 for the three and nine months ended September 30, 2021. Future increases in assets under management will increase this cost. CWA Fee Allocation Agreement: As of September 30, 2021, certain officers, directors and their affiliated companies had depository accounts with the Bank totaling approximately $6.4 million. None of those deposit accounts have terms more favorable than those available to any other depositor. As of September 30, 2021, there were no loans outstanding to directors of the Bank or their affiliated companies. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 13. 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% that was fully implemented as of January 1, 2019. The Basel III minimum capital ratio requirements as applicable to the Company and the Bank as of September 30, 2021 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 buffered Basel III capital ratios. As of September 30, 2021, the Bank’s regulatory capital ratios are in excess of the capital conservation buffer and the levels established for “well capitalized” institutions under the Basel III Rules. The regulatory capital ratios of the Company and the Bank are as follows: Actual Minimum Capital Required - Basel III Required to be Considered Well Capitalized (In thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2021 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 63,489 18.29 % $ 36,440 10.50 % $ 34,705 10.00 % T Bank, N.A. 65,526 19.00 36,216 10.50 34,492 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 59,591 17.17 29,499 8.50 27,764 8.00 T Bank, N.A. 61,628 17.87 29,318 8.50 27,593 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 42,341 12.20 24,293 7.00 22,558 6.50 T Bank, N.A. 61,628 17.87 24,144 7.00 22,420 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 59,591 12.55 18,997 4.00 23,747 5.00 T Bank, N.A. 61,628 13.12 18,782 4.00 23,477 5.00 As of December 31, 2020 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 50,987 18.22 % $ 29,379 10.50 % $ 27,980 10.00 % T Bank, N.A. 50,012 18.25 28,782 10.50 27,411 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 48,046 17.17 23,783 8.50 22,384 8.00 T Bank, N.A. 47,071 17.17 23,299 8.50 21,929 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 30,796 11.01 19,586 7.00 18,187 6.50 T Bank, N.A. 47,071 17.17 19,188 7.00 17,817 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 48,046 11.66 16,480 4.00 20,601 5.00 T Bank, N.A. 47,071 11.58 16,257 4.00 20,322 5.00 Dividend Restrictions In addition to the regulatory requirements of the federal banking agencies, Sanders Morris and Tectonic Advisors are subject to the regulatory framework applicable to registered investment advisors under the SEC’s Division of Investment Management, and additionally, Sanders Morris is regulated by FINRA, which, among other requirements, imposes minimums on its net regulatory capital. |
Operating Segments
Operating Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 14. 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, along with services provided through the factoring operations of the Bank’s Integra division. The “Other Financial Services” segment includes managed and directed brokerage, investment advisory services, including related trust company operations, third party administration, and life and disability 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, 2021 and 2020: (In thousands) Banking Other Financial Services HoldCo Consolidated Three Months Ended September 30, 2021 Income Statement Total interest income $ 8,784 $ - $ - $ 8,784 Total interest expense 681 - 235 916 Provision for loan losses 641 - - 641 Net-interest income (loss) after provision for loan losses 7,462 - (235 ) 7,227 Non-interest income 294 9,055 - 9,349 Depreciation and amortization expense 96 35 - 131 All other non-interest expense 3,397 6,068 414 9,879 Income (loss) before income tax $ 4,263 $ 2,952 $ (649 ) $ 6,566 Goodwill and other intangibles $ 19,918 $ 2,350 $ - $ 22,268 Total assets $ 563,861 $ 10,925 $ (154 ) $ 574,632 (In thousands) Banking Other Financial Services HoldCo Consolidated Nine Months Ended September 30, 2021 Income Statement Total interest income $ 21,314 $ - $ - $ 21,314 Total interest expense 2,081 - 673 2,754 Provision for loan losses 1,210 - - 1,210 Net-interest income (loss) after provision for loan losses 18,023 - (673 ) 17,350 Non-interest income 752 26,128 85 26,965 Depreciation and amortization expense 280 109 - 389 All other non-interest expense 8,138 17,778 1,099 27,015 Income (loss) before income tax $ 10,357 $ 8,241 $ (1,687 ) $ 16,911 Goodwill and other intangibles $ 19,918 $ 2,350 $ - $ 22,268 Total assets $ 563,861 $ 10,925 $ (154 ) $ 574,632 (In thousands) Banking Other Financial Services HoldCo Consolidated Three Months Ended September 30, 2020 Income Statement Total interest income $ 5,310 $ - $ - $ 5,310 Total interest expense 1,018 - 219 1,237 Provision for loan losses 445 - - 445 Net-interest income (loss) after provision for loan losses 3,847 - (219 ) 3,628 Non-interest income 604 7,133 - 7,737 Depreciation and amortization expense 92 43 - 135 All other non-interest expense 2,292 5,054 253 7,599 Income (loss) before income tax $ 2,067 $ 2,036 $ (472 ) $ 3,631 Goodwill and other intangibles $ 9,408 $ 2,350 $ - $ 11,758 Total assets $ 506,861 $ 9,155 $ 301 $ 516,317 (In thousands) Banking Other Financial Services HoldCo Consolidated Nine Months Ended September 30, 2020 Income Statement Total interest income $ 15,149 $ - $ - $ 15,149 Total interest expense 3,539 - 656 4,195 Provision for loan losses 1,709 - - 1,709 Net-interest income (loss) after provision for loan losses 9,901 - (656 ) 9,245 Non-interest income 1,257 21,135 22 22,414 Depreciation and amortization expense 278 201 - 479 All other non-interest expense 5,691 15,323 727 21,741 Income (loss) before income tax $ 5,189 $ 5,611 $ (1,361 ) $ 9,439 Goodwill and other intangibles $ 9,408 $ 2,350 $ - $ 11,758 Total assets $ 506,861 $ 9,155 $ 301 $ 516,317 |
Fair Value of Financials Instru
Fair Value of Financials Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 15. 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 Accounting Standards Codification (“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, 2021 Securities available for sale: U.S. government agencies $ - $ 15,691 $ - $ 15,691 Mortgage-backed securities - 1,869 - 1,869 As of December 31, 2020 Securities available for sale: U.S. government agencies $ - $ 14,949 $ - $ 14,949 Mortgage-backed securities - 2,447 - 2,447 Market valuations of our investment securities which are classified as level 2 are provided by an independent third party. The fair values are determined by using several sources for valuing fixed income securities. Their techniques include pricing models that vary based on the type of asset being valued and incorporate available trade, bid and other market information. In accordance with the fair value hierarchy, the market valuation sources include observable market inputs and are therefore considered Level 2 inputs for purposes of determining the fair values. The Company considers transfers between the levels of the hierarchy to be recognized at the end of related reporting periods. During the three and nine months ended September 30, 2021, no assets for which fair value is measured on a recurring basis transferred between any levels of the hierarchy. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis during the reported periods include impaired loans and loans held for sale. Impaired loans. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral-dependent impaired loans primarily relate to the specialized discounting criteria applied to the borrower’s reported amount of collateral. The amount of the collateral discount depends upon the condition and marketability of the collateral, as well as other factors which may affect the collectability of the loan. As the Company’s primary objective in the event of default would be to liquidate the collateral to settle the outstanding balance of the loan, collateral that is less marketable would receive a larger discount. During the reported periods, there were no discounts for collateral-dependent impaired loans. The valuation of our not readily marketable investment securities which are classified as Level 3 are based on the Company’s own assumptions and inputs that are both significant to the fair value measurement, and are unobservable. Our assessment of the significance of a particular input to the Level 3 fair value measurements in their entirety requires judgment and considers factors specific to the assets. It is reasonably possible that a change in the estimated fair value for instruments measured using Level 3 inputs could occur in the future. Loans held for sale. Non-financial assets measured at fair value on a non-recurring basis during the reported periods include other real estate owned which, upon initial recognition, was re-measured and reported at fair value through a charge-off to the allowance for loan losses. Additionally, foreclosed assets which, subsequent to their initial recognition, are re-measured at fair value through a write-down included in other non-interest expense. Regulatory guidelines require the Company to reevaluate the fair value of foreclosed assets on at least an annual basis. The fair value of foreclosed assets, upon initial recognition and impairment, are re-measured using Level 2 inputs based on observable market data. Estimated fair value of other real estate is based on appraisals. Appraisers are selected from the list of approved appraisers maintained by management. During the three and nine months ended September 30, 2021, the Company foreclosed on one SBA loan for $517,000, which is reported at fair value as of September 30, 2021. At December 31, 2020, there were no foreclosed assets. There were no foreclosed assets re-measured during the three and nine months ended September 30, 2021 and 2020. The methods and assumptions used to estimate fair value of financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis are described as follows: Carrying amount is the estimated fair value for cash and cash equivalents, restricted securities, accrued interest receivable and accrued interest payable. The estimated fair value of demand and savings deposits is the carrying amount since rates are regularly adjusted to market rates and amounts are payable on demand. For borrowed funds and variable rate loans or deposits that re-price frequently and fully, the estimated fair value is the carrying amount. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent re-pricing, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. For loans held for sale, the estimated fair value is based on market indications for similar assets in the active market. The estimated fair value of other financial instruments and off-balance-sheet loan commitments approximate cost and are not considered significant to this presentation. The Company adds a servicing asset when loans are sold and the servicing is retained, and uses the amortization method for the treatment of the servicing asset. The servicing asset is carried at lower of cost or fair value. Loan servicing assets do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using a discounted cash flow model having significant inputs of discount rate, prepayment speed and default rate. Due to the nature of the valuation inputs, servicing rights are classified within Level 3 of the hierarchy. During the nine months ended September 30, 2021, the Company added servicing assets totaling $19,000 in connection with the sale of $1.1 million in loans. There were no sales of loans during the three months ended September 30, 2021. During the three and nine months ended September 30, 2020, the Company added servicing assets totaling $60,000 and $152,000, respectively, in connection with the sale of $3.6 million and $9.8 million, respectively, in loans during the three and nine months ended September 30, 2020. For the three and nine months ended September 20, 2020, there was a credit provision of $250,000 to the valuation allowance for servicing assets. There was no allowance provision for the three and nine months ended September 30, 2021. FASB ASC Topic 825, Financial Instruments Securities held to maturity Loans. Deposits. Borrowed Funds. Loan Commitments, Standby and Commercial Letters of Credit. Carrying amounts and estimated fair values of other financial instruments by level of valuation input were as follows: September 30, 2021 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 43,963 $ 43,963 Level 2 inputs: Securities available for sale 17,560 17,560 Securities, restricted 2,432 2,432 Loans held for sale 25,718 28,724 Accrued interest receivable 1,923 1,923 Level 3 inputs: Securities held to maturity 19,658 19,658 Securities not readily marketable 100 100 Loans, net 428,569 418,181 Servicing asset 626 626 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 79,350 79,350 Level 2 inputs: Interest bearing deposits 342,593 349,368 Borrowed funds 62,068 62,068 Accrued interest payable 342 342 December 31, 2020 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 46,868 $ 46,868 Level 2 inputs: Securities available for sale 17,396 17,396 Securities, restricted 2,431 2,431 Loans held for sale 14,864 16,462 Accrued interest receivable 2,440 2,440 Level 3 inputs: Securities held to maturity 5,776 5,776 Securities not readily marketable 100 100 Loans, net 397,601 389,143 Servicing asset 809 809 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 57,112 57,112 Level 2 inputs: Interest bearing deposits 290,903 292,174 Borrowed funds 95,690 95,690 Accrued interest payable 596 596 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Note 16. Recent Accounting Pronouncements Accounting Standards Update ( ASU ) 2016-13, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. ASU 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes. ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 17. Acquisition On July 1, 2021, we, through our wholly-owned subsidiary TBI, acquired Integra through the merger of Integra with and into TBI, with TBI surviving the merger. Integra’s activity is reported within our Banking segment. Integra is a factoring company that provides financing to smaller transportation companies across the United States principally by purchasing their accounts receivable at a discount and then collecting such receivables at face value. We believe that the addition of this small business lending vertical provides the Bank with additional breadth in its lending platform and enables the Bank to continue to prudently grow its balance sheet and generate relatively attractive returns on its assets. Pursuant to the terms of and subject to the conditions set forth in the Agreement and Plan of Merger (the “Merger Agreement”), the transaction provided for the payment to the members of Integra of (a) an amount of cash equal to (i) approximately $2.5 million, subject to certain adjustments described in the Merger Agreement which totaled $726,721, and (b) 453,203 shares of the Company’s common stock. In addition, the Company incurred $115,726 related to the acquisition of Integra, which is reported in non-interest expense on our consolidated statements of income. A summary of the fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill, which represents the expected synergies from the merger and is not deductible for tax purposes, is as follows: (Dollars in thousands) Assets acquired: Factored receivables $ 33,442 Other assets 270 Premises and equipment 24 Loans receivable 1,103 34,839 Liabilities assumed: Deposits 2,535 Other liabilities 253 Borrowings 28,927 31,715 Fair value of net assets acquired 3,124 Consideration: Cash paid 3,185 Common stock 10,650 Total consideration 13,835 Goodwill $ 10,711 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Tectonic Financial, Inc. (the “Company,” “we,” “us,” or “our”) is a financial holding company that offers, through its subsidiaries, banking and other financial services including trust, investment advisory, securities brokerage, factoring, third-party administration, recordkeeping and insurance services to individuals, small businesses and institutions across the United States. We operate through four main direct and indirect subsidiaries: (i) T Bancshares, Inc. (“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 banking 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, Texas 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 Nolan Company (“Nolan”), operating as a division within the Bank, offers third party administration (“TPA”) services, and Integra Funding Solutions, LLC (“Integra”), also operating as a division within the Bank, offers factoring services. The Bank’s technological capabilities, including worldwide free ATM withdrawals, sophisticated on-line banking capabilities, electronic funds transfer capabilities, and economical remote deposit solutions, allow most customers to be served regardless of their geographic location. The Bank serves its local geographic market which includes Dallas, Tarrant, Denton, Collin and Rockwall counties which encompass an area commonly referred to as the Dallas/Fort Worth Metroplex. The Bank also serves the dental and other health professional industries through a centralized loan and deposit platform that operates out of its main office in Dallas, Texas. In addition, the Bank serves the small business community by offering loans guaranteed by the U.S. 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 trust services. The Bank’s traditional fiduciary services clients primarily consist of clients of Cain, Watters & Associates, LLC (“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 12, Related Parties Basis of Presentation In the opinion of management, all adjustments that were normal and recurring in nature, and considered necessary, have been included for the fair presentation of the Company’s consolidated financial position and results of operations. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of results that may be expected for the full year ending December 31, 2021. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates. |
Reclassification, Comparability Adjustment [Policy Text Block] | Accounting Changes, Reclassifications and Restatements. |
Receivable [Policy Text Block] | Factored Receivables Integra, operating as a division of the Bank, purchases invoices on completed work from its factoring clients. Integra also makes, from time to time, short-term advances to its clients on transportation contracts for upcoming loads or, to a much lesser extent, makes over-advances on the existing purchased invoices. Funds are advanced to the client based on the applicable advance rate, less fees, as agreed to in each individual factoring agreement. The gross amount (face value) of the invoices purchased are recorded by Integra as factored receivables, and the unadvanced portions of the invoices purchased, less discount and origination fees, are considered deferred client reserves and recorded as other liabilities, in the Company’s consolidated balance sheets. The deferred client reserves are held to settle any payment disputes or collection short payments, and become reserves due to client when the receivables are collected and may be used to pay clients’ obligations to various third parties as directed by the client, or are periodically withdrawn by clients, and are reported as deposits in the Company’s consolidated balance sheets. Unearned factoring fees and unearned net origination fees are deferred revenue and recognized as interest income in the Company’s consolidated income statements over the weighted average collection period for the entire portfolio of factored receivables. Subsequent factoring fees are recognized in interest income as incurred by the client and deducted from the clients’ reserve balances. Other factoring-related fees, which include ACH and wire transfer fees, fuel card funding fees, carrier payment fees, fuel advance fees, and other similar fees, are recognized as incurred and are reported by the Company as non-interest income. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share Three months ended September 30, Nine months ended September 30, (In thousands, except per share data) 2021 2020 2021 2020 Net income available to common shareholders $ 4,761 $ 2,510 $ 12,000 $ 6,249 Average shares outstanding 7,022 6,569 6,721 6,569 Effect of dilutive shares 251 - 189 - Average diluted shares outstanding 7,273 6,569 6,910 6,569 Basic earnings per share $ 0.68 $ 0.38 $ 1.79 $ 0.95 Diluted earnings per share $ 0.65 $ 0.38 $ 1.74 $ 0.95 As of September 30, 2021, options to purchase 190,000 shares of common stock, with a weighted average exercise price of $5.62, were included in the computation of diluted net earnings per share, and options to purchase 40,000 shares of common stock, with a weighted average exercise price of $10.00, were excluded from the computation of diluted net earnings per share because their effect was anti-dilutive. In addition, as of September 30, 2021, 210,000 shares of restricted stock grants with a grant date fair value of $4.81 per share which vest from 2023 through 2025 were included in the diluted earnings per share calculation. |
Organization and Significant _2
Organization and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic earnings per share (“EPS”) is computed based on the weighted-average number of shares outstanding during each year. Diluted EPS 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 EPS for the following periods: Three months ended September 30, Nine months ended September 30, (In thousands, except per share data) 2021 2020 2021 2020 Net income available to common shareholders $ 4,761 $ 2,510 $ 12,000 $ 6,249 Average shares outstanding 7,022 6,569 6,721 6,569 Effect of dilutive shares 251 - 189 - Average diluted shares outstanding 7,273 6,569 6,910 6,569 Basic earnings per share $ 0.68 $ 0.38 $ 1.79 $ 0.95 Diluted earnings per share $ 0.65 $ 0.38 $ 1.74 $ 0.95 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | A summary of amortized cost and fair value of securities is presented below. September 30, 2021 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 15,897 $ 8 $ 214 $ 15,691 Mortgage-backed securities 1,820 49 - 1,869 Total securities available for sale $ 17,717 $ 57 $ 214 $ 17,560 Securities held to maturity Property Assessed Clean Energy $ 2,735 $ - $ - $ 2,735 Public Improvement District & Tax Increment Reinvestment Zone 16,923 - - 16,923 Total securities held to maturity $ 19,658 $ - $ - $ 19,658 Securities, restricted: Other $ 2,432 $ - $ - $ 2,432 Securities not readily marketable $ 100 $ - $ - $ 100 December 31, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale U.S. government agencies $ 14,936 $ 38 $ 25 $ 14,949 Mortgage-backed securities 2,373 74 - 2,447 Total securities available for sale $ 17,309 $ 112 $ 25 $ 17,396 Securities held to maturity Property Assessed Clean Energy $ 5,776 $ - $ - $ 5,776 Securities, restricted: Other $ 2,431 $ - $ - $ 2,431 Securities not readily marketable $ 100 $ - $ - $ 100 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value [Table Text Block] | The table below indicates the length of time individual investment securities have been in a continuous loss position as of September 30, 2021: Less than 12 months 12 months or longer Total (In thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government agencies $ 9,055 $ 115 $ 5,897 $ 99 $ 14,952 $ 214 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and estimated fair value of securities as of September 30, 2021 are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities are shown separately since they are not due at a single maturity date. Available for Sale Held to Maturity (In thousands) Amortized Cost Estimated Amortized Cost Estimated Fair Value Due in one year or less $ 21 $ 21 $ 2,678 $ 2,678 Due after one year through five years 1,995 1,960 - - Due after five years through ten years 10,193 10,096 - - Due after ten years 3,688 3,614 16,980 16,980 Mortgage-backed securities 1,820 1,869 - - Total $ 17,717 $ 17,560 $ 19,658 $ 19,658 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Major classifications of loans held for investment are as follows: (In thousands) September 30, 2021 December 31, 2020 Commercial and industrial $ 80,921 $ 79,864 Consumer installment 2,333 10,259 Real estate – residential 4,975 4,319 Real estate – commercial 64,758 44,484 Real estate – construction and land 3,562 8,396 SBA: SBA 7(a) guaranteed 149,881 164,687 SBA 7(a) unguaranteed 51,393 52,179 SBA 504 34,831 35,553 USDA 804 801 Factored Receivables 39,001 - Other 8 - Gross Loans 432,467 400,542 Less: Allowance for loan losses 3,898 2,941 Net loans $ 428,569 $ 397,601 |
Financing Receivable, Nonaccrual [Table Text Block] | Non-accrual loans, segregated by class of loans, were as follows: (In thousands) September 30, 2021 December 31, 2020 Non-accrual loans: Commercial and industrial $ 94 $ 158 Real estate – commercial 151 - SBA guaranteed 4,233 1,118 SBA unguaranteed 1,212 517 Total $ 5,690 $ 1,793 |
Impaired Financing Receivables [Table Text Block] | The Company’s impaired loans and related allowance is summarized in the following table: Unpaid Recorded Recorded Contractual Investment Investment Total Average Interest Principal With No With Recorded Related Recorded Income (In thousands) Balance Allowance Allowance Investment Allowance Investment Recognized September 30, 2021 Nine Months Ended Commercial and industrial $ 94 $ 94 $ - $ 94 $ - $ 76 $ 2 SBA 6,962 6,699 - 6,699 - 6,615 21 Total $ 7,056 $ 6,793 $ - $ 6,793 $ - $ 6,691 $ 23 December 31, 2020 Year Ended Commercial and industrial $ - $ - $ - $ - $ - $ 10 $ - Real estate – construction and land - - - - - 313 - SBA 6,649 2,976 - 2,976 - 3,206 61 Total $ 6,649 $ 2,976 $ - $ 2,976 $ - $ 3,529 $ 61 |
Financing Receivable, Past Due [Table Text Block] | Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The Company’s past due loans are as follows: Total 90 30-89 Days 90 Days or Total Total Total Days Past Due (In thousands) Past Due More Past Due Past Due Current Loans Still Accruing September 30, 2021 Commercial and industrial $ - $ - $ - $ 80,921 $ 80,921 $ - Consumer installment - - - 2,333 2,333 - Real estate – residential - - - 4,975 4,975 - Real estate – commercial - 72 72 64,686 64,758 - Real estate – construction and land - - - 3,562 3,562 - SBA 63 3,033 3,096 233,009 236,105 - USDA - - - 804 804 - Factored Receivables 2,096 352 2,448 36,553 39,001 352 Other - - - 8 8 - Total $ 2,159 $ 3,457 $ 5,616 $ 426,851 $ 432,467 $ 352 December 31, 2020 Commercial and industrial $ - $ - $ - $ 79,864 $ 79,864 $ - Consumer installment - - - 10,259 10,259 - Real estate – residential - - - 4,319 4,319 - Real estate – commercial 121 158 279 44,205 44,484 - Real estate – construction and land - - - 8,396 8,396 - SBA - 1,635 1,635 250,784 252,419 - USDA - - - 801 801 - Total $ 121 $ 1,793 $ 1,914 $ 398,628 $ 400,542 $ - |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table summarizes the Company’s internal ratings of its loans as of the dates indicated: Pass- Special (In thousands) Pass Watch Mention Substandard Doubtful Total September 30, 2021 Commercial and industrial $ 80,493 $ 334 $ - $ 94 $ - $ 80,921 Consumer installment 2,333 - - - - 2,333 Real estate – residential 4,764 - - 211 - 4,975 Real estate – commercial 64,607 - - 151 - 64,758 Real estate – construction and land 3,562 - - - - 3,562 SBA 218,010 13,117 2,079 2,899 - 236,105 USDA 804 - - - - 804 Factored Receivables 39,001 - - - - 39,001 Other 8 - - - - 8 Total $ 413,582 $ 13,451 $ 2,079 $ 3,355 $ - $ 432,467 December 31, 2020 Commercial and industrial $ 79,134 $ 730 $ - $ - $ - $ 79,864 Consumer installment 10,259 - - - - 10,259 Real estate – residential 4,319 - - - - 4,319 Real estate – commercial 44,326 - - 158 - 44,484 Real estate – construction and land 8,396 - - - - 8,396 SBA 243,533 5,242 1,794 1,850 - 252,419 USDA 801 - - - - 801 Total $ 390,768 $ 5,972 $ 1,794 $ 2,008 $ - $ 400,542 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | The following table summarizes the Company’s internal ratings of its loans as of the dates indicated: (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Other Total Three months ended: September 30, 2021 Beginning Balance $ 1,129 $ 50 $ 76 $ 738 $ 105 $ 1,190 $ 19 $ - $ - $ 3,307 Provision for loan losses (57 ) (20 ) (8 ) 131 (57 ) 11 - 641 - 641 Charge-offs - - - - - - - (73 ) - (73 ) Recoveries - - - - - 3 - 20 - 23 Net recoveries (charge-offs) - - - - - 3 - (53 ) - (50 ) Ending balance $ 1,072 $ 30 $ 68 $ 869 $ 48 $ 1,204 $ 19 $ 588 $ - $ 3,898 September 30, 2020 Beginning Balance $ 1,099 $ 90 $ 58 $ 687 $ 179 $ 435 $ - $ - $ - $ 2,548 Provision for loan losses (168 ) (33 ) (15 ) (129 ) (71 ) 842 19 - - 445 Charge-offs - - - - - (57 ) - - - (57 ) Recoveries - - - - - 2 - - - 2 Net charge-offs - - - - - (55 ) - - - (55 ) Ending balance $ 931 $ 57 $ 43 $ 558 $ 108 $ 1,222 $ 19 $ - $ - $ 2,938 (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Other Total Nine months ended: September 30, 2021 Beginning Balance $ 928 $ 91 $ 52 $ 527 $ 100 $ 1,225 $ 18 $ - $ - $ 2,941 Provision for loan losses 144 (61 ) 16 342 (52 ) 179 1 641 - 1,210 Charge-offs - - - - - (215 ) - (73 ) - (288 ) Recoveries - - - - - 15 - 20 - 35 Net charge-offs - - - - - (200 ) - (53 ) - (253 ) Ending balance $ 1,072 $ 30 $ 68 $ 869 $ 48 $ 1,204 $ 19 $ 588 $ - $ 3,898 September 30, 2020 Beginning Balance $ 501 $ 27 $ 22 $ 347 $ 76 $ 435 $ - $ - $ - $ 1,408 Provision for loan losses 397 30 21 211 32 999 19 - - 1,709 Charge-offs - - - - - (218 ) - - - (218 ) Recoveries 33 - - - - 6 - - - 39 Net recoveries (charge-offs) 33 - - - - (212 ) - - - (179 ) Ending balance $ 931 $ 57 $ 43 $ 558 $ 108 $ 1,222 $ 19 $ - $ - $ 2,938 (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Other Total September 30, 2021 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 1,072 30 68 869 48 1,204 19 588 - 3,898 Ending balance $ 1,072 $ 30 $ 68 $ 869 $ 48 $ 1,204 $ 19 $ 588 $ - $ 3,898 December 31, 2020 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans collectively evaluated for impairment 928 91 52 527 100 1,225 18 - - 2,941 Ending balance $ 928 $ 91 $ 52 $ 527 $ 100 $ 1,225 $ 18 $ - $ - $ 2,941 (In thousands) Commercial and Industrial Consumer Installment Real Estate Residential Real Estate Commercial Real Estate Construction and Land SBA USDA Factored Receivables Other Total September 30, 2021 Loans individually evaluated for impairment $ 94 $ - $ - $ - $ - $ 6,699 $ - $ - $ - $ 6,793 Loans collectively evaluated for impairment 80,827 2,333 4,975 64,758 3,562 229,406 804 39,001 8 425,674 Ending balance $ 80,921 $ 2,333 $ 4,975 $ 64,758 $ 3,562 $ 236,105 $ 804 $ 39,001 $ 8 $ 432,467 December 31, 2020 Loans individually evaluated for impairment $ - $ - $ - $ - $ - $ 2,976 $ - $ - $ - $ 2,976 Loans collectively evaluated for impairment 79,864 10,259 4,319 44,484 8,396 249,443 801 - - 397,566 Ending balance $ 79,864 $ 10,259 $ 4,319 $ 44,484 $ 8,396 $ 252,419 $ 801 $ - $ - $ 400,542 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of September 30, 2021, the minimum rental commitments under these noncancelable operating leases are as follows (in thousands): 2021 $ 193 2022 403 2023 76 2024 7 Total minimum rental payments 679 Less: Interest (22 ) Present value of lease liabilities $ 657 |
Goodwill and Core Deposit Int_2
Goodwill and Core Deposit Intangible (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Goodwill and core deposit intangible assets were as follows: (In thousands) September 30, 2021 December 31, 2020 Goodwill $ 21,440 $ 10,729 Core deposit intangible, net 828 979 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The carrying basis and accumulated amortization of the core deposit intangible as of September 30, 2021 and December 31, 2020 were as follows: (In thousands) September 30, 2021 December 31, 2020 Gross carrying basis $ 1,708 $ 1,708 Accumulated amortization (880 ) (729 ) Net carrying amount $ 828 $ 979 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated amortization expense of the core deposit intangible remaining as of September 30, 2021 is as follows: (In thousands) 2021 remaining $ 51 2022 208 2023 210 2024 210 2025 149 Total $ 828 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Statistical Disclosure for Banks [Abstract] | |
Deposit Liabilities, Type [Table Text Block] | Deposits were as follows : (In thousands, except percentages) September 30, 2021 December 31, 2020 Non-interest bearing demand $ 79,350 19 % $ 57,112 16 % Interest-bearing demand (NOW) 6,452 1 5,060 2 Money market accounts 126,371 30 105,079 30 Savings accounts 7,493 2 6,139 2 Time deposits 202,277 48 174,625 50 Total $ 421,943 100 % $ 348,015 100 % |
Time Deposit Maturities [Table Text Block] | As of September 30, 2021, the scheduled maturities of time deposits were as follows: (In thousands) 2021 $ 34,727 2022 129,383 2023 24,314 2024 7,489 2025 5,503 Thereafter 861 Total $ 202,277 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | The following table summarizes loan commitments: (In thousands) September 30, 2021 December 31, 2020 Undisbursed loan commitments $ 22,978 $ 19,880 Standby letters of credit 282 162 Total $ 23,260 $ 20,042 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block [Abstract] | |
Schedule of Regulatory Capital Ratio Requirments under Banking Regulations [Table Text Block] | In addition, the Basel III regulatory capital reforms (“Basel III”) implemented a capital conservation buffer of 2.5% that was fully implemented as of January 1, 2019. The Basel III minimum capital ratio requirements as applicable to the Company and the Bank as of September 30, 2021 are summarized in the table below. BASEL III Minimum for Capital Adequacy Requirements BASEL III Additional Capital Conservation Buffer BASEL III Ratio with Capital Conservation Buffer Total Risk Based Capital (total capital to risk weighted assets) 8.0 % 2.5 % 10.5 % Tier 1 Risk Based Capital (tier 1 to risk weighted assets) 6.0 % 2.5 % 8.5 % Common Equity Tier 1 Risk Based ( CET1 to risk weighted assets) 4.5 % 2.5 % 7.0 % Tier 1 Leverage Ratio (tier 1 to average assets) 4.0 % - % 4.0 % |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | The regulatory capital ratios of the Company and the Bank are as follows: Actual Minimum Capital Required - Basel III Required to be Considered Well Capitalized (In thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2021 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 63,489 18.29 % $ 36,440 10.50 % $ 34,705 10.00 % T Bank, N.A. 65,526 19.00 36,216 10.50 34,492 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 59,591 17.17 29,499 8.50 27,764 8.00 T Bank, N.A. 61,628 17.87 29,318 8.50 27,593 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 42,341 12.20 24,293 7.00 22,558 6.50 T Bank, N.A. 61,628 17.87 24,144 7.00 22,420 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 59,591 12.55 18,997 4.00 23,747 5.00 T Bank, N.A. 61,628 13.12 18,782 4.00 23,477 5.00 As of December 31, 2020 Total Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) $ 50,987 18.22 % $ 29,379 10.50 % $ 27,980 10.00 % T Bank, N.A. 50,012 18.25 28,782 10.50 27,411 10.00 Tier 1 Capital (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 48,046 17.17 23,783 8.50 22,384 8.00 T Bank, N.A. 47,071 17.17 23,299 8.50 21,929 8.00 Common Equity Tier 1 (to Risk Weighted Assets) Tectonic Financial, Inc. (consolidated) 30,796 11.01 19,586 7.00 18,187 6.50 T Bank, N.A. 47,071 17.17 19,188 7.00 17,817 6.50 Tier 1 Capital (to Average Assets) Tectonic Financial, Inc. (consolidated) 48,046 11.66 16,480 4.00 20,601 5.00 T Bank, N.A. 47,071 11.58 16,257 4.00 20,322 5.00 |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The tables below present the financial information for each segment that is specifically identifiable, or based on allocations using internal methods, for the three and nine months ended September 30, 2021 and 2020: (In thousands) Banking Other Financial Services HoldCo Consolidated Three Months Ended September 30, 2021 Income Statement Total interest income $ 8,784 $ - $ - $ 8,784 Total interest expense 681 - 235 916 Provision for loan losses 641 - - 641 Net-interest income (loss) after provision for loan losses 7,462 - (235 ) 7,227 Non-interest income 294 9,055 - 9,349 Depreciation and amortization expense 96 35 - 131 All other non-interest expense 3,397 6,068 414 9,879 Income (loss) before income tax $ 4,263 $ 2,952 $ (649 ) $ 6,566 Goodwill and other intangibles $ 19,918 $ 2,350 $ - $ 22,268 Total assets $ 563,861 $ 10,925 $ (154 ) $ 574,632 (In thousands) Banking Other Financial Services HoldCo Consolidated Nine Months Ended September 30, 2021 Income Statement Total interest income $ 21,314 $ - $ - $ 21,314 Total interest expense 2,081 - 673 2,754 Provision for loan losses 1,210 - - 1,210 Net-interest income (loss) after provision for loan losses 18,023 - (673 ) 17,350 Non-interest income 752 26,128 85 26,965 Depreciation and amortization expense 280 109 - 389 All other non-interest expense 8,138 17,778 1,099 27,015 Income (loss) before income tax $ 10,357 $ 8,241 $ (1,687 ) $ 16,911 Goodwill and other intangibles $ 19,918 $ 2,350 $ - $ 22,268 Total assets $ 563,861 $ 10,925 $ (154 ) $ 574,632 (In thousands) Banking Other Financial Services HoldCo Consolidated Three Months Ended September 30, 2020 Income Statement Total interest income $ 5,310 $ - $ - $ 5,310 Total interest expense 1,018 - 219 1,237 Provision for loan losses 445 - - 445 Net-interest income (loss) after provision for loan losses 3,847 - (219 ) 3,628 Non-interest income 604 7,133 - 7,737 Depreciation and amortization expense 92 43 - 135 All other non-interest expense 2,292 5,054 253 7,599 Income (loss) before income tax $ 2,067 $ 2,036 $ (472 ) $ 3,631 Goodwill and other intangibles $ 9,408 $ 2,350 $ - $ 11,758 Total assets $ 506,861 $ 9,155 $ 301 $ 516,317 (In thousands) Banking Other Financial Services HoldCo Consolidated Nine Months Ended September 30, 2020 Income Statement Total interest income $ 15,149 $ - $ - $ 15,149 Total interest expense 3,539 - 656 4,195 Provision for loan losses 1,709 - - 1,709 Net-interest income (loss) after provision for loan losses 9,901 - (656 ) 9,245 Non-interest income 1,257 21,135 22 22,414 Depreciation and amortization expense 278 201 - 479 All other non-interest expense 5,691 15,323 727 21,741 Income (loss) before income tax $ 5,189 $ 5,611 $ (1,361 ) $ 9,439 Goodwill and other intangibles $ 9,408 $ 2,350 $ - $ 11,758 Total assets $ 506,861 $ 9,155 $ 301 $ 516,317 |
Fair Value of Financials Inst_2
Fair Value of Financials Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes securities available for sale measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: (In thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value As of September 30, 2021 Securities available for sale: U.S. government agencies $ - $ 15,691 $ - $ 15,691 Mortgage-backed securities - 1,869 - 1,869 As of December 31, 2020 Securities available for sale: U.S. government agencies $ - $ 14,949 $ - $ 14,949 Mortgage-backed securities - 2,447 - 2,447 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Carrying amounts and estimated fair values of other financial instruments by level of valuation input were as follows: September 30, 2021 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 43,963 $ 43,963 Level 2 inputs: Securities available for sale 17,560 17,560 Securities, restricted 2,432 2,432 Loans held for sale 25,718 28,724 Accrued interest receivable 1,923 1,923 Level 3 inputs: Securities held to maturity 19,658 19,658 Securities not readily marketable 100 100 Loans, net 428,569 418,181 Servicing asset 626 626 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 79,350 79,350 Level 2 inputs: Interest bearing deposits 342,593 349,368 Borrowed funds 62,068 62,068 Accrued interest payable 342 342 December 31, 2020 (In thousands) Carrying Amount Estimated Fair Value Financial assets: Level 1 inputs: Cash and cash equivalents $ 46,868 $ 46,868 Level 2 inputs: Securities available for sale 17,396 17,396 Securities, restricted 2,431 2,431 Loans held for sale 14,864 16,462 Accrued interest receivable 2,440 2,440 Level 3 inputs: Securities held to maturity 5,776 5,776 Securities not readily marketable 100 100 Loans, net 397,601 389,143 Servicing asset 809 809 Financial liabilities: Level 1 inputs: Non-interest bearing deposits 57,112 57,112 Level 2 inputs: Interest bearing deposits 290,903 292,174 Borrowed funds 95,690 95,690 Accrued interest payable 596 596 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Integra Funding Solutions, LLC [Member] | |
Acquisition (Tables) [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | A summary of the fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill, which represents the expected synergies from the merger and is not deductible for tax purposes, is as follows: (Dollars in thousands) Assets acquired: Factored receivables $ 33,442 Other assets 270 Premises and equipment 24 Loans receivable 1,103 34,839 Liabilities assumed: Deposits 2,535 Other liabilities 253 Borrowings 28,927 31,715 Fair value of net assets acquired 3,124 Consideration: Cash paid 3,185 Common stock 10,650 Total consideration 13,835 Goodwill $ 10,711 |
Organization and Significant _3
Organization and Significant Accounting Policies (Details) | 9 Months Ended | ||
Sep. 30, 2021$ / sharesshares | Dec. 31, 2020$ / shares | Jan. 31, 2019 | |
Organization and Significant Accounting Policies (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 6.17 | $ 5.37 | |
Share-based Payment Arrangement, Option [Member] | |||
Organization and Significant Accounting Policies (Details) [Line Items] | |||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | shares | 190,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 5.62 | ||
Restricted Stock [Member] | |||
Organization and Significant Accounting Policies (Details) [Line Items] | |||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | shares | 210,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 4.81 | ||
The Nolan Company ("Nolan") [Member] | |||
Organization and Significant Accounting Policies (Details) [Line Items] | |||
Number of Subsidiaries | 4 | ||
Share-based Payment Arrangement, Option [Member] | |||
Organization and Significant Accounting Policies (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 10 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 40,000 |
Organization and Significant _4
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income available to common shareholders (in Dollars) | $ 4,761 | $ 2,510 | $ 12,000 | $ 6,249 |
Average shares outstanding | 7,021,953 | 6,568,750 | 6,721,478 | 6,568,750 |
Effect of common stock-based compensation | 251,000 | 0 | 189,000 | 0 |
Average diluted shares outstanding | 7,272,993 | 6,568,750 | 6,909,859 | 6,568,750 |
Basic earnings per share (in Dollars per share) | $ 0.68 | $ 0.38 | $ 1.79 | $ 0.95 |
Diluted earnings per share (in Dollars per share) | $ 0.65 | $ 0.38 | $ 1.74 | $ 0.95 |
Securities (Details)
Securities (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||
Securities, Description | Securities available for sale consist of U.S. government agency securities and mortgage-backed securities guaranteed by U.S. government agencies. Securities held to maturity consist of Property Assessed Clean Energy (“PACE”) and Public Improvement District/Tax Increment Reinvestment Zone (“PID/TIRZ”) investments. These investment contracts or bonds located in Texas, California and Florida, originate under a contractual obligation between the property owners, the local county or city administration, and a third-party administrator and sponsor. PACE assessments are created to fund the purchase and installation of energy saving improvements to the property such as solar panels. PID/TIRZ assessments are used to pay for development costs, in this case of a residential subdivision. Generally, as a property assessment, the total assessment is repaid in installments over a period of 5 to 32 years by the then current property owner(s). Each installment is collected by the County or City Tax Collector where the property is located. The assessments are an obligation of the property. Securities, restricted consist of Federal Reserve Bank of Dallas (“FRB”) and Federal Home Loan Bank of Dallas (“FHLB”) stock, which are carried at cost. | |
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | $ 202 | $ 554 |
Federal Reserve Bank Stock | 1,200 | 1,200 |
Federal Home Loan Bank Stock | 1,200 | 1,200 |
Marketable Securities, Current | $ 100 | $ 100 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 10 |
Securities (Details) - Schedule
Securities (Details) - Schedule of Available-for-sale Securities Reconciliation - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities available for sale: | ||
Securities available for sale, Amortized Cost | $ 17,717 | $ 17,309 |
Securities available for sale, Gross Unrealized Gains | 57 | 112 |
Securities available for sale, Gross Unrealized Losses | 214 | 25 |
Securities available for sale, Estimated Fair Value | 17,560 | 17,396 |
Securities held to maturity: | ||
Securities held to maturity, Amortized Cost | 19,658 | |
Securities held to maturity, Gross Unrealized Gains | 0 | |
Securities held to maturity, Gross Unrealized Losses | 0 | |
Securities held to maturity, Estimated Fair Value | 19,658 | |
Securities, restricted: | ||
Securities not readily marketable, Amortized Cost | 100 | 100 |
Securities not readily marketable, Gross Unrealized Gains | 0 | 0 |
Securities not readily marketable, Gross Unrealized Losses | 0 | 0 |
Securities not readily marketable, Estimated Fair Value | 100 | 100 |
US Government Agencies Debt Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, Amortized Cost | 15,897 | 14,936 |
Securities available for sale, Gross Unrealized Gains | 8 | 38 |
Securities available for sale, Gross Unrealized Losses | 214 | 25 |
Securities available for sale, Estimated Fair Value | 15,691 | 14,949 |
Collateralized Mortgage Backed Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, Amortized Cost | 1,820 | 2,373 |
Securities available for sale, Gross Unrealized Gains | 49 | 74 |
Securities available for sale, Gross Unrealized Losses | 0 | 0 |
Securities available for sale, Estimated Fair Value | 1,869 | 2,447 |
Property assessed clean energy [Member] | ||
Securities held to maturity: | ||
Securities held to maturity, Amortized Cost | 2,735 | 5,776 |
Securities held to maturity, Gross Unrealized Gains | 0 | 0 |
Securities held to maturity, Gross Unrealized Losses | 0 | 0 |
Securities held to maturity, Estimated Fair Value | 2,735 | 5,776 |
Public Improvement District & TIRZ [Member] | ||
Securities held to maturity: | ||
Securities held to maturity, Amortized Cost | 16,923 | |
Securities held to maturity, Gross Unrealized Gains | 0 | |
Securities held to maturity, Gross Unrealized Losses | 0 | |
Securities held to maturity, Estimated Fair Value | 16,923 | |
Other Debt Obligations [Member] | ||
Securities, restricted: | ||
Securities, Amortized Cost | 2,432 | 2,431 |
Securities, Gross Unrealized Gains | 0 | 0 |
Securities, Gross Unrealized Losses | 0 | 0 |
Securities, Estimated Fair Value | $ 2,432 | $ 2,431 |
Securities (Details) - Debt Sec
Securities (Details) - Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value - US Government Agencies Debt Securities [Member] $ in Thousands | Sep. 30, 2021USD ($) |
Securities (Details) - Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value [Line Items] | |
Less than 12 months, Fair Value | $ 9,055 |
Less than 12 months, Unrealized Losses | 115 |
12 months or longer, Fair Value | 5,897 |
12 months or longer, Unrealized Losses | 99 |
Total, Fair Value | 14,952 |
Total, Unrealized Losses | $ 214 |
Securities (Details) - Investme
Securities (Details) - Investments Classified by Contractual Maturity Date - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Investments Classified by Contractual Maturity Date [Abstract] | ||
Due in one year or less, Available for Sale Amortized Cost | $ 21 | |
Due in one year or less, Available for Sale Estimated Fair Value | 21 | |
Due in one year or less, Held to Maturity Amortized Cost | 2,678 | |
Due in one year or less, Held to Maturity Estimated Fair Value | 2,678 | |
Due after one year through five years, Available for Sale Amortized Cost | 1,995 | |
Due after one year through five years, Available for Sale Estimated Fair Value | 1,960 | |
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 | 10,193 | |
Due after five years through ten years, Available for Sale Estimated Fair Value | 10,096 | |
Due after five years through ten years, Held to Maturity Amortized Cost | 0 | |
Due after five years through ten years, Held to Maturity Estimated Fair Value | 0 | |
Due after ten years, Available for Sale Amortized Cost | 3,688 | |
Due after ten years, Available for Sale Estimated Fair Value | 3,614 | |
Due after ten years, Held to Maturity Amortized Cost | 16,980 | |
Due after ten years, Held to Maturity Estimated Fair Value | 16,980 | |
Mortgage-backed securities, Available for Sale Amortized Cost | 1,820 | |
Mortgage-backed securities, Available for Sale Estimated Fair Value | 1,869 | |
Mortgage-backed securities, Held to Maturity Amortized Cost | 0 | |
Mortgage-backed securities, Held to Maturity Estimated Fair Value | 0 | |
Total, Available for Sale Amortized Cost | 17,717 | $ 17,309 |
Total, Available for Sale Estimated Fair Value | 17,560 | 17,396 |
Total, Held to Maturity Amortized Cost | 19,658 | $ 5,776 |
Total, Held to Maturity Estimated Fair Value | $ 19,658 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Loans and Allowance for Loan Losses (Details) [Line Items] | |||||
Loans and Leases Receivable, Gross | $ 432,467 | $ 432,467 | $ 400,542 | ||
Dental Loans | 67,500 | $ 67,500 | $ 67,200 | ||
Percentage of Dental Practice to Loan Portfolio | 15.60% | 16.80% | |||
Proceeds from Sale of Loans Held-for-sale | $ 3,600 | $ 1,100 | $ 9,800 | ||
Loans and Leases Receivable, Gain (Loss) on Sales, Net | 101 | ||||
Increase (Decrease) in Loans Held-for-sale | 13,100 | $ 28,200 | |||
Number of SBA Loan Programs | 2 | ||||
Minimum [Member] | |||||
Loans and Allowance for Loan Losses (Details) [Line Items] | |||||
Loans Guarantee On Principal Balance | 75.00% | ||||
Maximum [Member] | |||||
Loans and Allowance for Loan Losses (Details) [Line Items] | |||||
Loans Guarantee On Principal Balance | 80.00% | ||||
Paycheck Protection Program ("PPP") [Member] | |||||
Loans and Allowance for Loan Losses (Details) [Line Items] | |||||
Loans and Leases Receivable, Gross | 49,200 | $ 49,200 | |||
Percentage of Dental Practice to Loan Portfolio | 17.60% | 21.10% | |||
Business and Industry Loans [Member] | |||||
Loans and Allowance for Loan Losses (Details) [Line Items] | |||||
Description of Loan Program | The Company serves the small business community by offering loans promulgated under the SBA’s 7(a) and 504 loan programs, and loans guaranteed by the USDA. SBA 7(a) and USDA loans are typically guaranteed by each agency in amounts ranging from 75% to 80% of the principal balance. For SBA construction loans, the Company records the guaranteed funded portion of the loans as held for sale. When the SBA loans are fully funded, the Company may sell the guaranteed portion into the secondary market, on a servicing-retained basis, or reclassify from loans held for sale to loans held for investment if the Company determines that holding these loans provide better long-term risk adjusted returns than selling the loans. In calculating gain on the sale of loans, the Company performs an allocation based on the relative fair values of the sold portion and retained portion of the loan. The Company’s assumptions are validated by reference to external market information. | ||||
SBA [Member] | |||||
Loans and Allowance for Loan Losses (Details) [Line Items] | |||||
Loans and Leases Receivable, Gross | 236,105 | $ 236,105 | $ 252,419 | ||
Financing Receivable, Held-for-Sale, Not Part of Disposal Group, after Valuation Allowance | 25,700 | $ 25,700 | 14,900 | ||
SBA 7(a) [Member] | |||||
Loans and Allowance for Loan Losses (Details) [Line Items] | |||||
Description of Loan Program | The SBA 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 SBA 7(a) loan is approved and funded by a qualified lender, partially guaranteed by the SBA and subject to applicable regulations. In general, the SBA guarantees up to 75% (100% for PPP loans) of the loan amount depending on loan size. The Company is required by the SBA to service the loan and retain a contractual minimum of 5% on all SBA 7(a) loans, but generally retains 25% (the unguaranteed portion). The servicing spread is 1% of the guaranteed portion of the loan that is sold in the secondary market. | ||||
SBA 504 [Member] | |||||
Loans and Allowance for Loan Losses (Details) [Line Items] | |||||
Loans and Leases Receivable, Gross | 34,831 | $ 34,831 | 35,553 | ||
Description of Loan Program | The SBA 504 program is an economic development-financing program providing long-term, low down payment loans to businesses. Typically, a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100% SBA-guaranteed debenture) with a junior lien covering up to 40% of the total cost, and a contribution of at least 10% equity from the borrower. Debenture limits are $5.0 million for regular 504 loans and $5.5 million for those 504 loans that meet a public policy goal. | ||||
USDA [Member] | |||||
Loans and Allowance for Loan Losses (Details) [Line Items] | |||||
Loans and Leases Receivable, Gross | 804 | $ 804 | $ 801 | ||
Description of Loan Program | These loans are similar to the SBA product, except they are guaranteed by the USDA. The guaranteed amount is generally 80%. B&I loans are made to businesses in designated rural areas and are generally larger loans to larger businesses than the SBA 7(a) loans. Similar to the SBA 7(a) product, they can be sold into the secondary market. These loans can be utilized for rural commercial real estate and equipment. The loans can have maturities up to 30 years and the rates can be fixed or variable. | ||||
Loans with Modifications [Member] | |||||
Loans and Allowance for Loan Losses (Details) [Line Items] | |||||
Number of Loan Modifications | 6 | 11 | |||
Financing Receivable, after Allowance for Credit Loss | $ 10,300 | $ 10,300 | $ 4,300 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Details) - Schedule of Accounts, Notes, Loans and Financing Receivables - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | $ 432,467 | $ 400,542 | ||||
Less: | ||||||
Allowance for loan losses | 3,898 | $ 3,307 | 2,941 | $ 2,938 | $ 2,548 | $ 1,408 |
Net loans | 428,569 | 397,601 | ||||
Commercial and Industrial Sector [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 80,921 | 79,864 | ||||
Less: | ||||||
Allowance for loan losses | 1,072 | 1,129 | 928 | 931 | 1,099 | 501 |
Consumer Portfolio Segment [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 2,333 | 10,259 | ||||
Less: | ||||||
Allowance for loan losses | 30 | 50 | 91 | 57 | 90 | 27 |
Residential Mortgage [Member] | Real Estate Sector [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 4,975 | 4,319 | ||||
Less: | ||||||
Allowance for loan losses | 68 | 76 | 52 | 43 | 58 | 22 |
Commercial Real Estate [Member] | Real Estate Sector [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 64,758 | 44,484 | ||||
Less: | ||||||
Allowance for loan losses | 869 | 738 | 527 | 558 | 687 | 347 |
Construction Loans [Member] | Real Estate Sector [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 3,562 | 8,396 | ||||
Less: | ||||||
Allowance for loan losses | 48 | 105 | 100 | 108 | 179 | 76 |
SBA 7(a) guaranteed [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 149,881 | 164,687 | ||||
SBA 7(a) unguaranteed [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 51,393 | 52,179 | ||||
SBA 504 [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 34,831 | 35,553 | ||||
USDA [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 804 | 801 | ||||
Less: | ||||||
Allowance for loan losses | 19 | 19 | 18 | 19 | 0 | 0 |
Factored Receivables [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 39,001 | 0 | ||||
Less: | ||||||
Allowance for loan losses | 588 | 0 | 0 | 0 | 0 | 0 |
Other Receivables [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and Leases Receivable | 8 | 0 | ||||
Less: | ||||||
Allowance for loan losses | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Details) - Financing Receivable, Nonaccrual - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Non-accrual loans: | ||
Financing Receivable, Nonaccrual | $ 5,690 | $ 1,793 |
Commercial and Industrial Sector [Member] | ||
Non-accrual loans: | ||
Financing Receivable, Nonaccrual | 94 | 158 |
Commercial Real Estate [Member] | ||
Non-accrual loans: | ||
Financing Receivable, Nonaccrual | 151 | 0 |
SBA 7(a) guaranteed [Member] | ||
Non-accrual loans: | ||
Financing Receivable, Nonaccrual | 4,233 | 1,118 |
SBA 7(a) unguaranteed [Member] | ||
Non-accrual loans: | ||
Financing Receivable, Nonaccrual | $ 1,212 | $ 517 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Details) - Impaired Financing Receivables - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | $ 7,056 | $ 6,649 |
Recorded Investment With No Allowance | 6,793 | 2,976 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 6,793 | 2,976 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 6,691 | 3,529 |
Interest Income Recognized | 23 | 61 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 94 | 0 |
Recorded Investment With No Allowance | 94 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 94 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 76 | 10 |
Interest Income Recognized | 2 | 0 |
SBA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 6,962 | 6,649 |
Recorded Investment With No Allowance | 6,699 | 2,976 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 6,699 | 2,976 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 6,615 | 3,206 |
Interest Income Recognized | $ 21 | 61 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 0 | |
Recorded Investment With No Allowance | 0 | |
Recorded Investment With Allowance | 0 | |
Total Recorded Investment | 0 | |
Related Allowance | 0 | |
Average Recorded Investment | 313 | |
Interest Income Recognized | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Details) - Financing Receivable, Past Due - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | $ 432,467 | $ 400,542 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 352 | 0 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 80,921 | 79,864 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 5,616 | 1,914 |
Financing Receivable, Recorded Investment, Total Current | 5,616 | 1,914 |
Financial Asset, Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Financia lAsset Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 426,851 | 398,628 |
Financing Receivable, Recorded Investment, Total Current | 426,851 | 398,628 |
Financia lAsset Not Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 80,921 | 79,864 |
Financing Receivable, Recorded Investment, Total Current | 80,921 | 79,864 |
Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,159 | 121 |
Financing Receivable, Recorded Investment, Total Current | 2,159 | 121 |
Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,457 | 1,793 |
Financing Receivable, Recorded Investment, Total Current | 3,457 | 1,793 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 2,333 | 10,259 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Consumer Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Consumer Portfolio Segment [Member] | Financia lAsset Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,333 | 10,259 |
Financing Receivable, Recorded Investment, Total Current | 2,333 | 10,259 |
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 4,975 | 4,319 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Residential Mortgage [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Residential Mortgage [Member] | Financia lAsset Not Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4,975 | 4,319 |
Financing Receivable, Recorded Investment, Total Current | 4,975 | 4,319 |
Residential Mortgage [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Residential Mortgage [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 64,758 | 44,484 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Commercial Real Estate [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 72 | 279 |
Financing Receivable, Recorded Investment, Total Current | 72 | 279 |
Commercial Real Estate [Member] | Financia lAsset Not Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 64,686 | 44,205 |
Financing Receivable, Recorded Investment, Total Current | 64,686 | 44,205 |
Commercial Real Estate [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 121 |
Financing Receivable, Recorded Investment, Total Current | 0 | 121 |
Commercial Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 72 | 158 |
Financing Receivable, Recorded Investment, Total Current | 72 | 158 |
Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 3,562 | 8,396 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
Construction Loans [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Construction Loans [Member] | Financia lAsset Not Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,562 | 8,396 |
Financing Receivable, Recorded Investment, Total Current | 3,562 | 8,396 |
Construction Loans [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Construction Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
SBA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 236,105 | 252,419 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
SBA [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,096 | 1,635 |
Financing Receivable, Recorded Investment, Total Current | 3,096 | 1,635 |
SBA [Member] | Financia lAsset Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 233,009 | 250,784 |
Financing Receivable, Recorded Investment, Total Current | 233,009 | 250,784 |
SBA [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 63 | 0 |
Financing Receivable, Recorded Investment, Total Current | 63 | 0 |
SBA [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,033 | 1,635 |
Financing Receivable, Recorded Investment, Total Current | 3,033 | 1,635 |
USDA [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 804 | 801 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | 0 |
USDA [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
USDA [Member] | Financia lAsset Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 804 | 801 |
Financing Receivable, Recorded Investment, Total Current | 804 | 801 |
USDA [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
USDA [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Total Current | 0 | 0 |
Factored Receivables [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 39,001 | 0 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 352 | |
Factored Receivables [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,448 | |
Financing Receivable, Recorded Investment, Total Current | 2,448 | |
Factored Receivables [Member] | Financia lAsset Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 36,553 | |
Financing Receivable, Recorded Investment, Total Current | 36,553 | |
Factored Receivables [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,096 | |
Financing Receivable, Recorded Investment, Total Current | 2,096 | |
Factored Receivables [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 352 | |
Financing Receivable, Recorded Investment, Total Current | 352 | |
Other Receivables [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Total Loans | 8 | $ 0 |
Financing Receivable, Recorded Investment, Total 90 Days Past Due Still Accruing | 0 | |
Other Receivables [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | |
Financing Receivable, Recorded Investment, Total Current | 0 | |
Other Receivables [Member] | Financia lAsset Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 8 | |
Financing Receivable, Recorded Investment, Total Current | 8 | |
Other Receivables [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | |
Financing Receivable, Recorded Investment, Total Current | 0 | |
Other Receivables [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | |
Financing Receivable, Recorded Investment, Total Current | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Details) - Financing Receivable Credit Quality Indicators - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | $ 432,467 | $ 400,542 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 413,582 | 390,768 |
Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 13,451 | 5,972 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2,079 | 1,794 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 3,355 | 2,008 |
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 80,921 | 79,864 |
Commercial and Industrial Sector [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 80,493 | 79,134 |
Commercial and Industrial Sector [Member] | Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 334 | 730 |
Commercial and Industrial Sector [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Commercial and Industrial Sector [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 94 | 0 |
Commercial and Industrial Sector [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2,333 | 10,259 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2,333 | 10,259 |
Consumer Portfolio Segment [Member] | Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Residential Mortgage [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 4,975 | 4,319 |
Residential Mortgage [Member] | Pass [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 4,764 | 4,319 |
Residential Mortgage [Member] | Pass-Watch [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Residential Mortgage [Member] | Special Mention [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Residential Mortgage [Member] | Substandard [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 211 | 0 |
Residential Mortgage [Member] | Doubtful [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Commercial Real Estate [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 64,758 | 44,484 |
Commercial Real Estate [Member] | Pass [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 64,607 | 44,326 |
Commercial Real Estate [Member] | Pass-Watch [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Commercial Real Estate [Member] | Special Mention [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Commercial Real Estate [Member] | Substandard [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 151 | 158 |
Commercial Real Estate [Member] | Doubtful [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Construction Loans [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 3,562 | 8,396 |
Construction Loans [Member] | Pass [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 3,562 | 8,396 |
Construction Loans [Member] | Pass-Watch [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Construction Loans [Member] | Special Mention [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Construction Loans [Member] | Substandard [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Construction Loans [Member] | Doubtful [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
SBA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 236,105 | 252,419 |
SBA [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 218,010 | 243,533 |
SBA [Member] | Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 13,117 | 5,242 |
SBA [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2,079 | 1,794 |
SBA [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 2,899 | 1,850 |
SBA [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
USDA [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 804 | 801 |
USDA [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 804 | 801 |
USDA [Member] | Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
USDA [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
USDA [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
USDA [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | 0 |
Factored Receivables [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 39,001 | 0 |
Factored Receivables [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 39,001 | |
Factored Receivables [Member] | Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | |
Factored Receivables [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | |
Factored Receivables [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | |
Factored Receivables [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | |
Other Receivables [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 8 | $ 0 |
Other Receivables [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 8 | |
Other Receivables [Member] | Pass-Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | |
Other Receivables [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | |
Other Receivables [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | 0 | |
Other Receivables [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Details) - Financing Receivable, Allowance for Credit Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Three months ended: | |||||
Beginning Balance | $ 3,307 | $ 2,548 | $ 2,941 | $ 1,408 | |
Provision for loan losses | 641 | 445 | 1,210 | 1,709 | |
Charge-offs | (73) | (57) | (288) | (218) | |
Recoveries | 23 | 2 | 35 | 39 | |
Net charge-offs | (50) | (55) | (253) | (179) | |
Ending balance | 3,898 | 2,938 | 3,898 | 2,938 | |
Loans individually evaluated for impairment | 0 | 0 | $ 0 | ||
Loans collectively evaluated for impairment | 3,898 | 3,898 | 2,941 | ||
Loans individually evaluated for impairment | 6,793 | 6,793 | 2,976 | ||
Loans collectively evaluated for impairment | 425,674 | 425,674 | 397,566 | ||
Ending balance | 432,467 | 432,467 | |||
Commercial and Industrial Sector [Member] | |||||
Three months ended: | |||||
Beginning Balance | 1,129 | 1,099 | 928 | 501 | |
Provision for loan losses | (57) | (168) | 144 | 397 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 33 | |
Net charge-offs | 0 | 0 | 0 | 33 | |
Ending balance | 1,072 | 931 | 1,072 | 931 | |
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 1,072 | 1,072 | 928 | ||
Loans individually evaluated for impairment | 94 | 94 | 0 | ||
Loans collectively evaluated for impairment | 80,827 | 80,827 | 79,864 | ||
Ending balance | 80,921 | 80,921 | |||
Consumer Portfolio Segment [Member] | |||||
Three months ended: | |||||
Beginning Balance | 50 | 90 | 91 | 27 | |
Provision for loan losses | (20) | (33) | (61) | 30 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 30 | 57 | 30 | 57 | |
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 30 | 30 | 91 | ||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 2,333 | 2,333 | 10,259 | ||
Ending balance | 2,333 | 2,333 | |||
Residential Mortgage [Member] | Real Estate Sector [Member] | |||||
Three months ended: | |||||
Beginning Balance | 76 | 58 | 52 | 22 | |
Provision for loan losses | (8) | (15) | 16 | 21 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 68 | 43 | 68 | 43 | |
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 68 | 68 | 52 | ||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 4,975 | 4,975 | 4,319 | ||
Ending balance | 4,975 | 4,975 | |||
Commercial Real Estate [Member] | Real Estate Sector [Member] | |||||
Three months ended: | |||||
Beginning Balance | 738 | 687 | 527 | 347 | |
Provision for loan losses | 131 | (129) | 342 | 211 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 869 | 558 | 869 | 558 | |
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 869 | 869 | 527 | ||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 64,758 | 64,758 | 44,484 | ||
Ending balance | 64,758 | 64,758 | |||
Construction Loans [Member] | Real Estate Sector [Member] | |||||
Three months ended: | |||||
Beginning Balance | 105 | 179 | 100 | 76 | |
Provision for loan losses | (57) | (71) | (52) | 32 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 48 | 108 | 48 | 108 | |
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 48 | 48 | 100 | ||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 3,562 | 3,562 | 8,396 | ||
Ending balance | 3,562 | 3,562 | |||
SBA [Member] | |||||
Three months ended: | |||||
Beginning Balance | 1,190 | 435 | 1,225 | 435 | |
Provision for loan losses | 11 | 842 | 179 | 999 | |
Charge-offs | 0 | (57) | (215) | (218) | |
Recoveries | 3 | 2 | 15 | 6 | |
Net charge-offs | 3 | (55) | (200) | (212) | |
Ending balance | 1,204 | 1,222 | 1,204 | 1,222 | |
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 1,204 | 1,204 | 1,225 | ||
Loans individually evaluated for impairment | 6,699 | 6,699 | 2,976 | ||
Loans collectively evaluated for impairment | 229,406 | 229,406 | 249,443 | ||
Ending balance | 236,105 | 236,105 | |||
USDA [Member] | |||||
Three months ended: | |||||
Beginning Balance | 19 | 0 | 18 | 0 | |
Provision for loan losses | 0 | 19 | 1 | 19 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 19 | 19 | 19 | 19 | |
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 19 | 19 | 18 | ||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 804 | 804 | 801 | ||
Ending balance | 804 | 804 | |||
Factored Receivables [Member] | |||||
Three months ended: | |||||
Beginning Balance | 0 | 0 | 0 | 0 | |
Provision for loan losses | 641 | 0 | 641 | 0 | |
Charge-offs | (73) | 0 | (73) | 0 | |
Recoveries | 20 | 0 | 20 | 0 | |
Net charge-offs | (53) | 0 | (53) | 0 | |
Ending balance | 588 | 0 | 588 | 0 | |
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 588 | 588 | 0 | ||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 39,001 | 39,001 | 0 | ||
Ending balance | 39,001 | 39,001 | |||
Other Receivables [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 | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 0 | 0 | 0 | ||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 8 | 8 | $ 0 | ||
Ending balance | $ 8 | $ 8 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 593 | $ 963 |
Operating Lease, Liability | $ 657 | $ 1,000 |
Operating Lease, Weighted Average Remaining Lease Term | 16 months | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.52% | |
Operating Leases, Future Minimum Payments Receivable | $ 814 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Future Minimum Rental Payments for Operating Leases - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | ||
2021 | $ 193 | |
2022 | 403 | |
2023 | 76 | |
2024 | 7 | |
Total minimum rental payments | 679 | |
Less: Interest | (22) | |
Present value of lease liabilities | $ 657 | $ 1,000 |
Goodwill and Core Deposit Int_3
Goodwill and Core Deposit Intangible (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Core Deposit Intangible (Details) [Line Items] | |||
Goodwill, Acquired During Period | $ 10,700 | ||
Amortization of Intangible Assets | $ 50 | $ 151 | $ 151 |
Minimum [Member] | Core Deposits [Member] | |||
Goodwill and Core Deposit Intangible (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Maximum [Member] | Core Deposits [Member] | |||
Goodwill and Core Deposit Intangible (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 12 years |
Goodwill and Core Deposit Int_4
Goodwill and Core Deposit Intangible (Details) - Schedule of Intangible Assets and Goodwill - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill and Core Deposit Intangible (Details) - Schedule of Intangible Assets and Goodwill [Line Items] | ||
Goodwill | $ 21,440 | $ 10,729 |
Core deposit intangible | 1,708 | 1,708 |
Core Deposits [Member] | ||
Goodwill and Core Deposit Intangible (Details) - Schedule of Intangible Assets and Goodwill [Line Items] | ||
Core deposit intangible | $ 828 | $ 979 |
Goodwill and Core Deposit Int_5
Goodwill and Core Deposit Intangible (Details) - Finite-lived Intangible Assets, Amortization Expense - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-lived Intangible Assets, Amortization Expense [Abstract] | ||
Gross carrying basis | $ 1,708 | $ 1,708 |
Accumulated amortization | (880) | (729) |
Net carrying amount | $ 828 | $ 979 |
Goodwill and Core Deposit Int_6
Goodwill and Core Deposit Intangible (Details) - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2021 remaining | $ 51 | |
2022 | 208 | |
2023 | 210 | |
2024 | 210 | |
2025 | 149 | |
Total | $ 828 | $ 979 |
Deposits (Details)
Deposits (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Statistical Disclosure for Banks [Abstract] | ||
Cash, FDIC Insured Amount | $ 250,000 | |
Time Deposits, at or Above FDIC Insurance Limit | $ 82,600,000 | $ 59,600,000 |
Deposits (Details) - Deposit Li
Deposits (Details) - Deposit Liabilities, Type - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deposit Liabilities, Type [Abstract] | ||
Non-interest bearing demand | $ 79,350 | $ 57,112 |
Non-interest bearing demand, percentage | 19.00% | 16.00% |
Interest-bearing demand (NOW) | $ 6,452 | $ 5,060 |
Interest-bearing demand (NOW), percentage | 1.00% | 2.00% |
Money market accounts | $ 126,371 | $ 105,079 |
Money market accounts, percentage | 30.00% | 30.00% |
Savings accounts | $ 7,493 | $ 6,139 |
Savings accounts, percentage | 2.00% | 2.00% |
Time deposits under $100,000 | $ 202,277 | $ 174,625 |
Time deposits under $100,000, percentage | 48.00% | 50.00% |
Total | $ 421,943 | $ 348,015 |
Total, percentage | 100.00% | 100.00% |
Deposits (Details) - Time Depos
Deposits (Details) - Time Deposit Maturities - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Time Deposit Maturities [Abstract] | ||
2021 | $ 34,727 | |
2022 | 129,383 | |
2023 | 24,314 | |
2024 | 7,489 | |
2025 | 5,503 | |
Thereafter | 861 | |
Total | $ 202,277 | $ 174,625 |
Borrowed Funds and Subordinat_2
Borrowed Funds and Subordinated Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2021 | Dec. 31, 2020 | |
Borrowed Funds and Subordinated Notes (Details) [Line Items] | ||||
Subordinated Debt | $ 12,000 | $ 12,000 | ||
Subordinated Debt [Member] | ||||
Borrowed Funds and Subordinated Notes (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.125% | 7.125% | ||
Subordinated Debt | 12,000 | $ 12,000 | ||
Proceeds from Issuance of Subordinated Long-term Debt | $ 4,000 | $ 8,000 | ||
Debt Instrument, Maturity Date | Mar. 31, 2028 | Jul. 20, 2027 | ||
Federal Reserve Bank Advances [Member] | ||||
Borrowed Funds and Subordinated Notes (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,100 | |||
Loans Pledged as Collateral | $ 50,100 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.35% | |||
Federal Home Loan Bank Advances [Member] | ||||
Borrowed Funds and Subordinated Notes (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 44,300 | |||
Long-term Line of Credit | 0 | |||
Federal Reserve Bank Advances [Member] | ||||
Borrowed Funds and Subordinated Notes (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 22,400 | |||
Long-term Line of Credit | $ 0 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Benefit Plans (Details) [Line Items] | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 117,000 | $ 96,000 | $ 392,000 | $ 321,000 |
Matching of Employee's Contribution on the First 1% [Member] | ||||
Benefit Plans (Details) [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |||
Matching of Employee's Contribution on the First 5% [Member] | ||||
Benefit Plans (Details) [Line Items] | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0.50 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income Tax Expense (Benefit) | $ 1,417 | $ 733 | $ 3,747 | $ 2,026 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.60% | 20.20% | 22.20% | 21.50% | |
Deferred Tax Assets, Valuation Allowance | $ 77,000 | $ 77,000 | $ 83,000 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Stock Compensation Plans (Details) [Line Items] | |||||
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, Grants in Period, Gross (in Shares) | 40,000 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ 10 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value (in Dollars per share) | $ 6.92 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 230,000 | 230,000 | 190,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 6.17 | $ 6.17 | $ 5.37 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 10 days | 6 years 4 months 13 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 5.97 | $ 1.94 | |||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 350,000 | $ 350,000 | |||
Share-based Payment Arrangement, Expense | $ 2,000 | $ 17,000 | $ 26,000 | $ 63,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | vesting over a three-year period from 2023 through 2025 | ||||
Share-based Payment Arrangement, Tranche One [Member] | |||||
Stock Compensation Plans (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in Shares) | 230,000,000 | ||||
Restricted Stock [Member] | |||||
Stock Compensation Plans (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 210,000 | 210,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 8 months 15 days | 3 years 5 months 15 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 4.81 | ||||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 705,000 | $ 705,000 | |||
Share-based Payment Arrangement, Expense | $ 71,000 | $ 210,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Security Deposit | $ 250,000 | $ 250,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of Line of Credit Facilities - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Loan commitments | $ 23,260 | $ 20,042 |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Undisbursed loan commitments | 22,978 | 19,880 |
Standby Letters of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Loan commitments | $ 282 | $ 162 |
Related Parties (Details)
Related Parties (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cain Watters & Associates [Member] | |||||
Related Parties (Details) [Line Items] | |||||
Related Party Ownership in Company | 31.00% | 31.00% | |||
Accounts Receivable, Related Parties | $ 100,000 | $ 100,000 | $ 43,000 | ||
Accounts Payable, Related Parties | 221,000 | $ 221,000 | $ 198,000 | ||
Related Party Transaction, Description of Transaction | Tectonic and Cain Watters are investing an amount equal to approximately 25 basis points, shared ratably, on the portion of assets falling under this service agreement above $2.5 billion, which as of September 30, 2021 represented approximately 1.8% of assets under the agreement, towards marketing costs to provide an incentive to Cain Watters and its planners to generate more asset growth to be managed by Tectonic under its service agreement with Cain Watters. | ||||
Cain Watters & Associates [Member] | Selling and Marketing Expense [Member] | |||||
Related Parties (Details) [Line Items] | |||||
Related Party Transaction, Amounts of Transaction | $ 19,000 | ||||
Cain Watters & Associates [Member] | Techtonic Advisors - CWA Services Agreement [Member] | |||||
Related Parties (Details) [Line Items] | |||||
Revenue from Related Parties | 222,000 | $ 530,000 | 705,000,000 | $ 1,400 | |
Certain Officers, Directors and their Affiliated Companies [Member] | |||||
Related Parties (Details) [Line Items] | |||||
Due to Related Parties | 6,400,000 | 6,400,000 | |||
Due to Related Parties, Current | $ 0 | $ 0 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Millions | Sep. 30, 2021USD ($) | Jan. 01, 2019 | Jan. 01, 2015 |
Regulatory Matters (Details) [Line Items] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval (in Dollars) | $ 3.6 | ||
Basel III Minimum Capital Ratio Requirments [Member] | |||
Regulatory Matters (Details) [Line Items] | |||
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.10 | ||
Banking Regulation, Tier One Risk-Based Capital Ratio, Actual | 0.08 | ||
Banking Regulation, Tier One Leverage Capital Ratio, Actual | 0.05 | ||
Banking Regulation, Tier One Risk-Based Capital Ratio, Excess, Actual | 0.065 | ||
Capital Conservation Buffer | 2.50% |
Regulatory Matters (Details) -
Regulatory Matters (Details) - Schedule of Regulatory Capital Ratio Requirments under Banking Regulations - Basel III Minimum Capital Ratio Requirments [Member] | Sep. 30, 2021 |
Regulatory Matters (Details) - Schedule of Regulatory Capital Ratio Requirments under Banking Regulations [Line Items] | |
Total Risk Based Capital (total capital to risk weighted assets), BASEL III Minimum for Capital Adequacy Requirements | 0.08 |
Total Risk Based Capital (total capital to risk weighted assets), BASEL III Additional Capital Conservation Buffer | 2.50% |
Total Risk Based Capital (total capital to risk weighted assets), BASEL III Ratio with Capital Conservation Buffer | 10.50% |
Tier 1 Risk Based Capital (tier 1 to risk weighted assets), BASEL III Minimum for Capital Adequacy Requirements | 0.06 |
Tier 1 Risk Based Capital (tier 1 to risk weighted assets), BASEL III Additional Capital Conservation Buffer | 2.50% |
Tier 1 Risk Based Capital (tier 1 to risk weighted assets), BASEL III Ratio with Capital Conservation Buffer | 8.50% |
Common Equity Tier 1 Risk Based ( CET1 to risk weighted assets), BASEL III Minimum for Capital Adequacy Requirements | 0.045 |
Common Equity Tier 1 Risk Based ( CET1 to risk weighted assets), BASEL III Additional Capital Conservation Buffer | 2.50% |
Common Equity Tier 1 Risk Based ( CET1 to risk weighted assets), BASEL III Ratio with Capital Conservation Buffer | 7.00% |
Tier 1 Leverage Ratio (tier 1 to average assets), BASEL III Minimum for Capital Adequacy Requirements | 0.04 |
Tier 1 Leverage Ratio (tier 1 to average assets), BASEL III Additional Capital Conservation Buffer | 0.00% |
Tier 1 Leverage Ratio (tier 1 to average assets), BASEL III Ratio with Capital Conservation Buffer | 4.00% |
Regulatory Matters (Details) _2
Regulatory Matters (Details) - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Consolidated Entities [Member] | ||
Total Capital (to Risk Weighted Assets) | ||
Total Capital (to Risk Weighted Assets), Actual, Amount | $ 63,489 | $ 50,987 |
Total Capital (to Risk Weighted Assets), Actual, Ratio | 0.1829 | 0.1822 |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 36,440 | $ 29,379 |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 0.105 | 0.105 |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 34,705 | $ 27,980 |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 0.10 | 0.10 |
Tier 1 Capital (to Risk Weighted Assets) | ||
Tier 1 Capital (to Risk Weighted Assets), Actual, Amount | $ 59,591 | $ 48,046 |
Tier 1 Capital (to Risk Weighted Assets), Actual, Ratio | 17.17 | 17.17 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 29,499 | $ 23,783 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 8.5 | 8.5 |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 27,764 | $ 22,384 |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 8 | 8 |
Common Equity Tier 1 (to Risk Weighted Assets) | ||
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Amount | $ 42,341 | $ 30,796 |
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Ratio | 12.2 | 11.01 |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 24,293 | $ 19,586 |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 7 | 7 |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 22,558 | $ 18,187 |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 6.5 | 6.5 |
Tier 1 Capital (to Average Assets) | ||
Tier 1 Capital (to Average Assets), Actual, Amount | $ 59,591 | $ 48,046 |
Tier 1 Capital (to Average Assets), Actual, Ratio | 12.55 | 11.66 |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Amount | $ 18,997 | $ 16,480 |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Ratio | 4 | 4 |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized,Amount | $ 23,747 | $ 20,601 |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized, Ratio | 5 | 5 |
T. Bank, N. A. [Member] | ||
Total Capital (to Risk Weighted Assets) | ||
Total Capital (to Risk Weighted Assets), Actual, Amount | $ 65,526 | $ 50,012 |
Total Capital (to Risk Weighted Assets), Actual, Ratio | 19 | 18.25 |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 36,216 | $ 28,782 |
Total Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 10.5 | 10.5 |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 34,492 | $ 27,411 |
Total Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 10 | 10 |
Tier 1 Capital (to Risk Weighted Assets) | ||
Tier 1 Capital (to Risk Weighted Assets), Actual, Amount | $ 61,628 | $ 47,071 |
Tier 1 Capital (to Risk Weighted Assets), Actual, Ratio | 17.87 | 17.17 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 29,318 | $ 23,299 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 8.5 | 8.5 |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 27,593 | $ 21,929 |
Tier 1 Capital (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 8 | 8 |
Common Equity Tier 1 (to Risk Weighted Assets) | ||
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Amount | $ 61,628 | $ 47,071 |
Common Equity Tier 1 (to Risk Weighted Assets), Actual, Ratio | 17.87 | 17.17 |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Amount | $ 24,144 | $ 19,188 |
Common Equity Tier 1 (to Risk Weighted Assets), Minimum Capital Required - Basel III , Ratio | 7 | 7 |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized,Amount | $ 22,420 | $ 17,817 |
Common Equity Tier 1 (to Risk Weighted Assets), Required to be Considered Well Capitalized, Ratio | 6.5 | 6.5 |
Tier 1 Capital (to Average Assets) | ||
Tier 1 Capital (to Average Assets), Actual, Amount | $ 61,628 | $ 47,071 |
Tier 1 Capital (to Average Assets), Actual, Ratio | 13.12 | 11.58 |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Amount | $ 18,782 | $ 16,257 |
Tier 1 Capital (to Average Assets), Minimum Capital Required - Basel III , Ratio | 4 | 4 |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized,Amount | $ 23,477 | $ 20,322 |
Tier 1 Capital (to Average Assets), Required to be Considered Well Capitalized, Ratio | 5 | 5 |
Operating Segments (Details) -
Operating Segments (Details) - Schedule of Segment Reporting Information, by Segment - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Statement | |||||
Total interest income | $ 8,784 | $ 5,310 | $ 21,314 | $ 15,149 | |
Total interest expense | 916 | 1,237 | 2,754 | 4,195 | |
Provision for loan losses | 641 | 445 | 1,210 | 1,709 | |
Net-interest income (loss) after provision for loan losses | 7,227 | 3,628 | 17,350 | 9,245 | |
Non-interest income | 9,349 | 7,737 | 26,965 | 22,414 | |
Depreciation and amortization expense | 131 | 135 | 389 | 479 | |
All other non-interest expense | 9,879 | 7,599 | 27,015 | 21,741 | |
Income (loss) before income tax | 6,566 | 3,631 | 16,911 | 9,439 | |
Goodwill and other intangibles | 22,268 | 11,758 | 22,268 | 11,758 | |
Total assets | 574,632 | 516,317 | 574,632 | 516,317 | $ 513,426 |
HoldCo [Member] | |||||
Income Statement | |||||
Total interest income | 0 | 0 | 0 | 0 | |
Total interest expense | 235 | 219 | 673 | 656 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Net-interest income (loss) after provision for loan losses | (235) | (219) | (673) | (656) | |
Non-interest income | 0 | 0 | 85 | 22 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
All other non-interest expense | 414 | 253 | 1,099 | 727 | |
Income (loss) before income tax | (649) | (472) | (1,687) | (1,361) | |
Goodwill and other intangibles | 0 | 0 | 0 | 0 | |
Total assets | (154) | 301 | (154) | 301 | |
Banking [Member] | |||||
Income Statement | |||||
Total interest income | 8,784 | 5,310 | 21,314 | 15,149 | |
Total interest expense | 681 | 1,018 | 2,081 | 3,539 | |
Provision for loan losses | 641 | 445 | 1,210 | 1,709 | |
Net-interest income (loss) after provision for loan losses | 7,462 | 3,847 | 18,023 | 9,901 | |
Non-interest income | 294 | 604 | 752 | 1,257 | |
Depreciation and amortization expense | 96 | 92 | 280 | 278 | |
All other non-interest expense | 3,397 | 2,292 | 8,138 | 5,691 | |
Income (loss) before income tax | 4,263 | 2,067 | 10,357 | 5,189 | |
Goodwill and other intangibles | 19,918 | 9,408 | 19,918 | 9,408 | |
Total assets | 563,861 | 506,861 | 563,861 | 506,861 | |
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 (loss) after provision for loan losses | 0 | 0 | 0 | 0 | |
Non-interest income | 9,055 | 7,133 | 26,128 | 21,135 | |
Depreciation and amortization expense | 35 | 43 | 109 | 201 | |
All other non-interest expense | 6,068 | 5,054 | 17,778 | 15,323 | |
Income (loss) before income tax | 2,952 | 2,036 | 8,241 | 5,611 | |
Goodwill and other intangibles | 2,350 | 2,350 | 2,350 | 2,350 | |
Total assets | $ 10,925 | $ 9,155 | $ 10,925 | $ 9,155 |
Fair Value of Financials Inst_3
Fair Value of Financials Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | ||||
Other Real Estate, Additions | $ 517 | $ 0 | ||
Servicing Asset at Fair Value, Additions | $ 60 | 19 | 152 | |
Proceeds from Sale of Loans Held-for-sale | 3,600 | 1,100 | 9,800 | |
Servicing Asset at Amortized Cost, Increase (Decrease) for Valuation Allowance Adjustment | $ 0 | $ 250 | $ 0 | $ 250 |
Fair Value of Financials Inst_4
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
US Government Agencies Debt Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
U.S. government agencies | $ 15,691 | $ 14,949 |
Collateralized Mortgage Backed Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | 1,869 | 2,447 |
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
U.S. government agencies | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
U.S. government agencies | 15,691 | 14,949 |
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | 1,869 | 2,447 |
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
U.S. government agencies | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value of Financials Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Mortgage-backed securities | $ 0 | $ 0 |
Fair Value of Financials Inst_5
Fair Value of Financials Instruments (Details) - Fair Value, by Balance Sheet Grouping - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Level 2 inputs: | ||
Securities available for sale, carrying amount | $ 17,560 | $ 17,396 |
Level 3 inputs: | ||
Securities held to maturity, carrying amount | 19,658 | 5,776 |
Securities held to maturity, estimated fair value | 19,658 | |
Securities not readily marketable, carrying amount | 100 | 100 |
Securities not readily marketable, estimated fair value | 100 | 100 |
Loans, net, carrying amount | 428,569 | 397,601 |
Level 1 inputs: | ||
Non-interest bearing deposits, carrying amount | 79,350 | 57,112 |
Non-interest bearing deposits, estimated fair value | 57,112 | |
Level 2 inputs: | ||
Interest bearing deposits, carrying amount | 140,316 | 116,278 |
Fair Value, Inputs, Level 1 [Member] | ||
Level 1 inputs: | ||
Cash and cash equivalents, carrying amount | 43,963 | 46,868 |
Cash and cash equivalents, estimated fair value | 43,963 | 46,868 |
Level 1 inputs: | ||
Non-interest bearing deposits, carrying amount | 79,350 | |
Non-interest bearing deposits, estimated fair value | 79,350 | |
Fair Value, Inputs, Level 2 [Member] | ||
Level 2 inputs: | ||
Securities available for sale, carrying amount | 17,560 | 17,396 |
Securities available for sale, estimated fair value | 17,560 | 17,396 |
Securities, restricted, carrying amount | 2,432 | 2,431 |
Securities, restricted, estimated fair value | 2,432 | 2,431 |
Loans held for sale, carrying amount | 25,718 | 14,864 |
Loans held for sale, estimated fair value | 28,724 | 16,462 |
Accrued interest receivable, carrying amount | 1,923 | 2,440 |
Accrued interest receivable, estimated fair value | 1,923 | 2,440 |
Level 2 inputs: | ||
Interest bearing deposits, carrying amount | 342,593 | 290,903 |
Interest bearing deposits, estimated fair value | 349,368 | 292,174 |
Borrowed funds, carrying amount | 62,068 | 95,690 |
Borrowed funds, estimated fair value | 62,068 | 95,690 |
Accrued interest payable, carrying amount | 342 | 596 |
Accrued interest payable, estimated fair value | 342 | 596 |
Fair Value, Inputs, Level 3 [Member] | ||
Level 3 inputs: | ||
Securities held to maturity, carrying amount | 19,658 | 5,776 |
Securities held to maturity, estimated fair value | 19,658 | 5,776 |
Loans, net, carrying amount | 428,569 | 397,601 |
Loans, net, estimated fair value | 418,181 | 389,143 |
Servicing asset, carrying amount | 626 | 809 |
Servicing asset, estimated fair value | $ 626 | $ 809 |
Acquisition (Details)
Acquisition (Details) - Integra Funding Solutions, LLC [Member] | Jul. 01, 2021USD ($)shares |
Acquisition (Details) [Line Items] | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 2,500,000 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | $ 726,721 |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | shares | 453,203 |
Business Combination, Consideration Transferred, Liabilities Incurred | $ 115,726 |
Acquisition (Details) - Schedul
Acquisition (Details) - Schedule of Business Acquisitions, by Acquisition - Integra Funding Solutions, LLC [Member] $ in Thousands | Jul. 01, 2021USD ($) |
Assets acquired: | |
Factored receivables | $ 33,442 |
Other assets | 270 |
Premises and equipment | 24 |
Loans receivable | 1,103 |
34,839 | |
Liabilities assumed: | |
Deposits | 2,535 |
Other liabilities | 253 |
Borrowings | 28,927 |
31,715 | |
Fair value of net assets acquired | 3,124 |
Consideration: | |
Cash paid | 3,185 |
Common stock | 10,650 |
Total consideration | 13,835 |
Goodwill | $ 10,711 |