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Regulatory Matters | 12 Months Ended
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Dec. 31, 2021
Disclosure Text Block [Abstract] |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 14. Regulatory Matters The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s and, accordingly, the Company’s business, results of operations and financial condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under GAAP, regulatory reporting requirements, and regulatory capital standards. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. Quantitative measures established by regulatory capital standards to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and tier 1 capital to risk-weighted assets, common equity Tier 1 (“CET1”) capital to total risk-weighted assets, and of tier 1 capital to average assets. To be categorized as “well-capitalized” under the prompt corrective action framework, the Bank must maintain (i) a Total risk-based capital ratio of 10%; (ii) a Tier 1 risk-based capital ratio of 8%; (iii) a Tier 1 leverage ratio of 5%; and (iv) a CET1 risk-based capital ratio of 6.5%. In addition, the Basel III regulatory capital reforms (“Basel III”) implemented a capital conservation buffer of 2.5%. The Basel III minimum capital ratio requirements as applicable to the Company and the Bank are summarized in the table below.
|  | BASEL III Minimum for Capital Adequacy Requirements |  |  | BASEL III Additional Capital Conservation Buffer |  |  | BASEL III Ratio with Capital Conservation Buffer |
Total Risk Based Capital (total capital to risk weighted assets) |  |  | 8.0 | % |  |  | 2.5 | % |  |  | 10.5 | %
Tier 1 Risk Based Capital (tier 1 to risk weighted assets) |  |  | 6.0 | % |  |  | 2.5 | % |  |  | 8.5 | %
Common Equity Tier 1 Risk Based ( CET1 to risk weighted assets) |  |  | 4.5 | % |  |  | 2.5 | % |  |  | 7.0 | %
Tier 1 Leverage Ratio (tier 1 to average assets) |  |  | 4.0 | % |  |  | - | % |  |  | 4.0 | %
Accordingly, a financial institution may be considered “well capitalized” under the prompt corrective action framework, but not satisfy the Basel III capital ratios. As of December 31, 2021, the Bank’s regulatory capital ratios are in excess of the capital conservation buffer and the levels established for “well capitalized” institutions under the Basel III Rules. The regulatory capital ratios of the Company and the Bank are as follows:
|  | Actual |  |  | Minimum Capital Required - Basel III |  |  | Required to be Considered Well Capitalized |
(In thousands, except percentages) |  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |  |  | Amount |  |  | Ratio |
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Capital (to Risk Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tectonic Financial, Inc. (consolidated) |  | $ | 66,946 |  |  |  | 18.55 | % |  | $ | 37,894 |  |  |  | 10.50 | % |  | $ | 36,089 |  |  |  | 10.00 | %
T Bank, N.A. |  |  | 67,454 |  |  |  | 18.87 |  |  |  | 37,542 |  |  |  | 10.50 |  |  |  | 35,754 |  |  |  | 10.00 |
Tier 1 Capital (to Risk Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tectonic Financial, Inc. (consolidated) |  |  | 62,794 |  |  |  | 17.40 |  |  |  | 30,676 |  |  |  | 8.50 |  |  |  | 28,871 |  |  |  | 8.00 |
T Bank, N.A. |  |  | 63,302 |  |  |  | 17.70 |  |  |  | 30,391 |  |  |  | 8.50 |  |  |  | 28,604 |  |  |  | 8.00 |
Common Equity Tier 1 (to Risk Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tectonic Financial, Inc. (consolidated) |  |  | 45,544 |  |  |  | 12.62 |  |  |  | 25,263 |  |  |  | 7.00 |  |  |  | 23,458 |  |  |  | 6.50 |
T Bank, N.A. |  |  | 63,302 |  |  |  | 17.70 |  |  |  | 25,028 |  |  |  | 7.00 |  |  |  | 23,240 |  |  |  | 6.50 |
Tier 1 Capital (to Average Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tectonic Financial, Inc. (consolidated) |  |  | 62,794 |  |  |  | 11.82 |  |  |  | 21,245 |  |  |  | 4.00 |  |  |  | 26,557 |  |  |  | 5.00 |
T Bank, N.A. |  |  | 63,302 |  |  |  | 12.06 |  |  |  | 21,002 |  |  |  | 4.00 |  |  |  | 26,252 |  |  |  | 5.00 |
As of December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Capital (to Risk Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tectonic Financial, Inc. (consolidated) |  | $ | 50,987 |  |  |  | 18.22 | % |  | $ | 29,379 |  |  |  | 10.50 | % |  | $ | 27,980 |  |  |  | 10.00 | %
T Bank, N.A. |  |  | 50,012 |  |  |  | 18.25 |  |  |  | 28,782 |  |  |  | 10.50 |  |  |  | 27,411 |  |  |  | 10.00 |
Tier 1 Capital (to Risk Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tectonic Financial, Inc. (consolidated) |  |  | 48,046 |  |  |  | 17.17 |  |  |  | 23,783 |  |  |  | 8.50 |  |  |  | 22,384 |  |  |  | 8.00 |
T Bank, N.A. |  |  | 47,071 |  |  |  | 17.17 |  |  |  | 23,299 |  |  |  | 8.50 |  |  |  | 21,929 |  |  |  | 8.00 |
Common Equity Tier 1 (to Risk Weighted Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tectonic Financial, Inc. (consolidated) |  |  | 30,796 |  |  |  | 11.01 |  |  |  | 19,586 |  |  |  | 7.00 |  |  |  | 18,187 |  |  |  | 6.50 |
T Bank, N.A. |  |  | 47,071 |  |  |  | 17.17 |  |  |  | 19,188 |  |  |  | 7.00 |  |  |  | 17,817 |  |  |  | 6.50 |
Tier 1 Capital (to Average Assets) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tectonic Financial, Inc. (consolidated) |  |  | 48,046 |  |  |  | 11.66 |  |  |  | 16,480 |  |  |  | 4.00 |  |  |  | 20,601 |  |  |  | 5.00 |
T Bank, N.A. |  |  | 47,071 |  |  |  | 11.58 |  |  |  | 16,257 |  |  |  | 4.00 |  |  |  | 20,322 |  |  |  | 5.00 |
Dividend Restrictions. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared (including those on the Series A preferred stock) would cause the regulatory capital of the Bank and/or the Company to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years. As of December 31, 2021, approximately $5.0 million was available for the declaration of dividends by the Bank to the Company without prior approval of regulatory agencies and still maintain its “well capitalized” status. In addition, as a Texas corporation, we are restricted under the Texas Business Organizations Code from paying dividends under certain conditions. Under Texas law, we cannot pay dividends to shareholders if the dividends exceed our surplus or if after giving effect to the dividends, we would be insolvent. 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.

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- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958575-112826 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (c)(2) -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958569-112826 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (a)(2) -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (a)(1) -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958573-112826 + Details
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