The bank's core profitability is under extreme pressure, evidenced by a negative net interest margin of -0.9% and an efficiency ratio that hit 100.0% in 2025Q3.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Net Interest Income | -32.46M | 0 | 0 | 27.48M | -3.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| NII Growth % | -752.89% | - | -100% | 857.68% | - | - | - | - | - | - | - | - | - | - |
| Net Interest Margin % | -3.05% | 0% | 0% | 4.49% | -0.62% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Interest Income | -21.24M | 0 | 0 | 33.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.8M | 0 | 0 | 5.9M | 3.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 5.53M | 0 | 0 | -5.9M | -3.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 111.29M | 72.24M | 65.88M | 32.87M | 60.17M | 47.62M | 40.3M | 35.14M | 20.64M | 22.22M | 22.32M | 21.23M | 18.38M | 14.85M |
| Non-Interest Income % | 123.59% | 100% | 100% | 49.61% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Total Revenue | 90.05M | 72.24M | 65.88M | 66.26M | 60.17M | 47.62M | 40.3M | 35.14M | 20.64M | 22.22M | 22.32M | 21.23M | 18.38M | 14.85M |
| Revenue Growth % | 44.43% | 9.66% | -0.57% | 10.12% | 26.35% | 18.17% | 14.69% | 70.26% | -7.14% | -0.43% | 5.14% | 15.5% | 23.78% | - |
| Non-Interest Expense | 58.38M | 41.98M | 36.58M | 44.8M | 38.33M | 33.7M | 30.52M | 24.51M | 17.11M | 16.04M | 17.22M | 16.44M | 15.2M | 12.77M |
| Efficiency Ratio | 64.83% | 58.1% | 55.53% | 67.62% | 63.71% | 70.76% | 75.73% | 69.74% | 82.89% | 72.19% | 77.17% | 77.45% | 82.7% | 85.98% |
| Operating Income | -11.59M | 30.27M | 29.29M | 21.45M | 21.84M | 13.92M | 9.78M | 10.63M | 11.2M | 14.59M | 15.55M | 14.77M | 12.47M | 2.08M |
| Operating Margin % | -12.88% | 41.9% | 44.47% | 32.38% | 36.29% | 29.24% | 24.27% | 30.26% | 54.29% | 65.67% | 69.69% | 69.59% | 67.83% | 14.02% |
| Operating Income Growth % | - | 3.32% | 36.55% | -1.76% | 56.85% | 42.34% | -8% | -5.11% | -23.24% | -6.17% | 5.3% | 18.5% | 499.04% | - |
| Pretax Income | 4.74M | 18.32M | 19.06M | 21.45M | 21.84M | 13.92M | 9.78M | 10.63M | 3.53M | 6.18M | 5.1M | 4.79M | 3.18M | 2.08M |
| Pretax Margin % | 5.26% | 25.36% | 28.93% | 32.38% | 36.29% | 29.24% | 24.27% | 30.26% | 17.11% | 27.81% | 22.83% | 22.55% | 17.3% | 14.02% |
| Income Tax | 1.46M | 4.38M | 3.84M | 4.42M | 4.8M | 3M | 1.9M | 1.01M | 598K | 2.2M | 1.8M | 1.75M | -910K | 0 |
| Effective Tax Rate % | 30.91% | 23.94% | 20.13% | 20.61% | 21.99% | 21.53% | 19.45% | 9.51% | 16.94% | 35.58% | 35.38% | 36.52% | -28.63% | 0% |
| Net Income | 3.27M | 13.94M | 15.22M | 15.48M | 15.48M | 9.37M | 6.46M | 8.82M | 2.93M | 3.98M | 3.29M | 3.04M | 4.09M | 2.08M |
| Net Margin % | 3.63% | 19.29% | 23.1% | 23.36% | 25.73% | 19.68% | 16.02% | 25.1% | 14.21% | 17.91% | 14.75% | 14.31% | 22.25% | 14.02% |
| Net Income Growth % | -75.74% | -8.44% | -1.67% | -0.03% | 65.18% | 45.14% | -26.76% | 200.75% | -26.35% | 20.89% | 8.39% | -25.7% | 96.49% | - |
| Net Income (Continuing) | 3.27M | 13.94M | 15.22M | 17.03M | 17.03M | 10.93M | 7.88M | 9.62M | 2.93M | 3.98M | 3.29M | 3.04M | 4.09M | 2.08M |
| EPS (Diluted) | 0.48 | 1.68 | 1.87 | 2.11 | 2.20 | 1.42 | 0.98 | 1.34 | 1.04 | 1.96 | 1.63 | 1.51 | 2.03 | 1.15 |
| EPS Growth % | 17.13% | -10.16% | -11.37% | -4.09% | 54.93% | 44.9% | -26.87% | 28.85% | -46.94% | 20.25% | 7.95% | -25.62% | 76.52% | - |
| EPS (Basic) | - | 1.71 | 1.87 | 2.11 | 2.21 | 1.42 | 0.98 | 1.34 | 1.04 | 1.96 | 1.62 | 1.50 | 2.02 | 1.16 |
| Diluted Shares Outstanding | 6.88M | 7.21M | 7.29M | 7.34M | 7.02M | 6.58M | 6.57M | 6.56M | 2.81M | 2.03M | 2.02M | 2.02M | 2.02M | 1.8M |
Negative Net Interest Income
As indicated by the provided financial data, Tectonic Financial has experienced a consistent decline in net interest income, culminating in a negative $9.3 million figure for 2025Q3, which highlights significant structural challenges in maintaining a positive spread between interest-earning assets and interest-bearing liabilities in the current environment.
The transition from positive NII in early 2024 to sustained negative territory suggests that the bank's funding costs are currently outpacing the yields generated by its specialized loan portfolio. This trajectory warrants close monitoring, as it indicates that the traditional banking model is currently acting as a drag on the firm's overall earnings power.
Based on the reported quarterly figures, Tectonic Financial's net interest margin has deteriorated into negative territory, reaching -0.9% in 2025Q3, a stark reversal from the 0.8% margin observed in 2023Q2, reflecting severe pressure on the bank's core interest-earning capacity and asset-liability management strategy.
The persistent negative NIM suggests that the bank is effectively paying more to maintain its deposit base than it is earning on its dental-focused loan book. Investors should investigate whether this is a temporary byproduct of aggressive balance sheet positioning or a more permanent structural impairment to the bank's profitability.
According to the income statement data, the efficiency ratio reached 100.0% in 2025Q3, signaling that non-interest expenses have fully consumed the bank's total revenue, a significant departure from the more manageable 50.7% efficiency ratio reported in 2025Q1, suggesting a lack of operating leverage in the current cycle.
The inability to maintain a stable efficiency ratio implies that the firm's cost base is not scaling effectively with its revenue streams. This volatility suggests that the bank may be struggling to control overhead costs while its interest-based revenue remains under significant pressure.
As reported in the financial statements, the provision for credit losses has fluctuated wildly, including a $23.4 million charge in 2024Q4 followed by a negative $9.3 million provision in 2025Q3, which complicates the assessment of the bank's underlying credit quality and true earnings power.
These large, non-linear swings in provision expense suggest that the bank is either experiencing significant lumpy credit events or is aggressively adjusting its reserve levels to manage reported net income. Analysts should look past these accounting adjustments to determine the actual health of the dental practice loan portfolio.
Based on the provided figures, non-interest income has become the primary driver of total revenue, representing 100% of the top line in 2025Q3, which indicates a heavy reliance on advisory and trust services to offset the ongoing weakness in the bank's net interest income generation.
While the advisory business provides a necessary buffer, the total reliance on fee income exposes the firm to market-sensitive revenue volatility that may not correlate with the stability of a traditional banking franchise. This shift suggests that Tectonic is increasingly functioning as an asset manager rather than a depository institution.
Quick answers to the most common questions about buying TECTP stock.
Tectonic Financial, Inc. (TECTP) is profitable, generating $13.9M in net income for the fiscal year ending 2024 with a net profit margin of 19.3%.
Tectonic Financial, Inc. (TECTP) reported an operating income of $30.3M, resulting in an operating profit margin of 41.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Tectonic Financial, Inc. (TECTP) generated $72.2M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.