Parent Company Financial Information (Tables)

12 Months Ended

Dec. 31, 2015

Parent Company Financial Information [Abstract]

Condensed balance sheet of Independence Bancshares, Inc. (parent company)

	December 31,
	2015		2014
Cash and cash equivalents	$	2,909,255	$	288,440
Investment in subsidiary		9,767,226		10,552,638
Premises and equipment, net		145,221		266,362
Other real estate owned		631,320		1,192,200
Other assets		96,961		250,290
	$	13,549,983	$	12,549,930
Liabilities and Shareholders’ Equity
Note payable	$	—	$	600,000
Accrued and other liabilities		905,824		2,539,350
Shareholders’ equity		12,644,159		9,410,580
Total liabilities and shareholders’ equity	$	13,549,983	$	12,549,930

Condensed statements of operations of Independence Bancshares, Inc. (parent Company)

	Year Ended December 31,
	2015			2014
Equity in undistributed net (loss) income of subsidiary	$	(912,960	)	$	225,604
Product research and development — Transaction Services		(2,209,978	)		(4,938,034	)
Forgiveness of debt		403,245			—
Loan interest and other income		1,141			2,855
Interest expense on note payable		(14,704	)		(23,128	)
Gain on sale of loans held for sale		—			118,452
Provision for loan losses		—			—
Property tax expense		(23,504	)		(36,775	)
Consulting and miscellaneous fees		(378,825	)		(203,373	)
Real estate owned activity		(117,278	)		(581,856	)
General and administrative expenses		(852,012	)		(502,729	)
Legal expense		(404,672	)		(195,026	)
Stock compensation expense		(288,972	)		(366,246	)
Net loss	$	(4,798,519	)	$	(6,500,256	)

Condensed statements of cash flows of Independence Bancshares, Inc. (parent company)

	Year Ended December 31,
	2015			2014
Operating activities
Net loss	$	(4,798,519	)	$	(6,500,256	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock compensation expense		288,973			366,246
Equity in undistributed net loss (income) of subsidiary		912,960			(225,604	)
Gain on sale of loans held for sale		—			(118,452	)
Net changes in fair value and losses on other real estate owned		105,603			581,856
Loan loss provision		—			—
Depreciation expense		128,549			126,115
Change in other assets		153,329			(67,762	)
Change in accrued items		(1,633,526	)		1,996,911
Net cash used in operating activities		(4,842,631	)		(3,840,946	)
Investing activities
Purchase of premises and equipment		(7,408	)		(5,943	)
Change in loans, net of allowance		—			2,120
Proceeds from sale of loans held for sale		—			1,033,000
Proceeds from sale of other real estate owned		455,277			151,214
Net cash provided by investing activities		447,869			1,180,391
Financing activities
Issuance of preferred stock, net of closing costs		7,615,577			—
(Repayments of) proceeds from note payable from affiliate		(600,000	)		600,000
Net cash provided by financing activities		7,015,577			600,000
Net increase (decrease) in cash and cash equivalents		2,620,815			(2,060,555	)
Cash and cash equivalents, beginning of year		288,440			2,348,995
Cash and cash equivalents, end of year	$	2,909,255		$	288,440
Schedule of non-cash transactions
Loans transferred to other real estate owned	$	—		$	809,000