Tectonic Financial, Inc. SEC 10-Q Report

Tectonic Financial, Inc., a diversified financial services company, has released its Form 10-Q report for the third quarter, showcasing significant growth in both financial and operational metrics. The report highlights the company's robust performance in its primary segments of Banking and Other Financial Services, with a particular focus on the Texas market. Below are the key takeaways from the report.

Financial Highlights

• Total Interest Income: $18.7 million, reflecting a 22.2% increase in average volume of interest-earning assets.
• Net Interest Income: $10.2 million, increased by 30.4% due to higher loan volumes and lower average cost of interest-bearing liabilities.
• Net Income Available to Common Shareholders: $3.8 million, a 26.3% increase from the previous year, driven by higher net interest income and non-interest income.
• Earnings Per Diluted Common Share: $0.55, compared to $0.38 for the same period last year, reflecting improved profitability.
• Annual Return on Average Assets: 1.82%, up from 1.61% in the prior year, indicating enhanced asset utilization.
• Annual Return on Average Equity: 15.40%, compared to 11.59% in the previous year, showing improved equity efficiency.

Business Highlights

• Revenue Segments: The company's primary reportable segments are Banking and Other Financial Services. The Banking segment includes commercial and consumer banking services, as well as factoring services. The Other Financial Services segment encompasses activities of Tectonic Advisors, Sanders Morris, the Bank’s trust division, and HWG Insurance Agency.
• Geographical Performance: The company operates primarily in the United States, with a significant focus on the State of Texas, which is its primary market. Changes in the economy of Texas and the broader U.S. market are critical to the company's performance.
• Sales Units: The company reported an increase in the average volume of loans, particularly in SBA loans, which comprise the largest group of loans in the portfolio. Factored receivables also saw an increase, indicating growth in the company's factoring services.
• Future Outlook: The company is cautious about potential economic downturns and their impact on borrowers, particularly those with SBA loans. The management is also focused on managing liquidity risks and the impacts of inflationary pressures on market interest rates and credit quality.

SEC Filing: Tectonic Financial, Inc. [ TECTP ] - 10-Q - Aug. 14, 2025