Tectonic Financial Reports 44.4% Increase in Net Income for Q1 2025

Tectonic Financial, Inc. reported a significant increase in its financial performance for the first quarter of 2025, with net income available to common shareholders rising to $3.9 million, a 44.4% increase from $2.7 million in the same period last year. Earnings per diluted share also improved, reaching $0.57 compared to $0.37 in the prior year. The growth in net income was primarily driven by a $1.9 million increase in net interest income and a $2.4 million rise in non-interest income, despite a $2.5 million increase in non-interest expenses and a $381,000 increase in income tax expenses.

Total assets for Tectonic Financial increased by $47.1 million, or 5.5%, to $910.5 million as of March 31, 2025, compared to $863.4 million at the end of 2024. This growth was largely attributed to a $34.4 million increase in loans held for investment and an $11.8 million rise in loans held for sale. However, shareholders' equity decreased by $2.1 million, or 1.9%, to $111.3 million, influenced by stock repurchases totaling $5.7 million and dividends paid on preferred and common stock.

In terms of operational metrics, Tectonic Financial's loan portfolio composition showed a notable shift, with total loans increasing to $703.8 million, up from $669.4 million at the end of 2024. The portfolio included a significant rise in SBA loans, which accounted for 63.7% of total loans. The company also reported a decrease in non-performing assets, with total non-accrual loans rising to $20.3 million, representing 2.89% of total loans, compared to $15.9 million, or 2.38%, at the end of the previous year.

Strategically, Tectonic Financial continues to focus on expanding its market presence and enhancing its service offerings. The company operates through four main subsidiaries, including T Bancshares, Inc., which serves as the registered bank holding company for T Bank, N.A. The bank's operations are supported by a robust technological infrastructure, allowing for efficient service delivery across its geographic markets. The company remains committed to monitoring credit quality and managing its allowance for credit losses in light of ongoing economic uncertainties, including inflationary pressures and potential recession risks.

Looking ahead, Tectonic Financial's management expressed confidence in its ability to navigate the current economic landscape while continuing to pursue growth opportunities. The company is focused on maintaining its capital adequacy and liquidity, ensuring it meets regulatory requirements while supporting its operational and strategic objectives.