Dividend restrictions

12 Months Ended

Dec. 31, 2021

Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]

Dividend restrictions

Dividend restrictions:

Due to regulations of the Tennessee Department of Financial Institutions, the Bank may not declare dividends in any calendar year that exceeds the total of its net income of that year combined with its retained net income of the preceding two years without the prior approval of the TDFI Commissioner. Based upon this regulation, $170,769 and $185,703 was available for payment of dividends without such prior approval as of December 31, 2021 and 2020, respectively.

In addition, dividends paid by the Bank to the Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements.

During the years ended December 31, 2021 and 2020, there were $122,500 and $48,750, respectively, in cash dividends declared from the Bank to the Company. Additionally, during the year ended December 31, 2020, the Bank also declared a noncash dividend to the Company comprising investment securities amounting to $956. There were no such noncash dividends from the Bank to the Company during the year ended December 31, 2021.