Dividend Restrictions

12 Months Ended

Dec. 31, 2023

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, $218,415 and $161,251 was available for payment of dividends without such prior approval as of December 31, 2023 and 2022, 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 both the years ended December 31, 2023 and 2022, there were $49,000 in cash dividends declared and paid from the Bank to the Company. During the year ended December 31, 2021, there were $122,500 in cash dividends declared and paid from the Bank to the Company.