TC Bancshares, Inc. operates as the bank holding company for TC Federal Bank that provides a variety of banking services to individual and commercial customers in its market areas.
The company’s business primarily consists of taking deposits from the general public and investing those deposits, together with funds generated from operations in one-to-four family residential real estate loans, commercial real estate and multi-family loans, acquisition, development and land loans, commercial and i...
TC Bancshares, Inc. operates as the bank holding company for TC Federal Bank that provides a variety of banking services to individual and commercial customers in its market areas.
The company’s business primarily consists of taking deposits from the general public and investing those deposits, together with funds generated from operations in one-to-four family residential real estate loans, commercial real estate and multi-family loans, acquisition, development and land loans, commercial and industrial loans, home equity loans and lines of credit and consumer loans.
The company conducts its business from its main office in Thomasville, Georgia, as well as additional branch banking locations in Tallahassee, Florida, and new branch locations in Jacksonville, Florida and Savannah, Georgia. The company also operates various loan production offices (LPOs) in Tallahassee and Jacksonville, Florida. The company provides a variety of financial services to individual and commercial customers in the markets the company serves.
The company generates non-interest income largely from its customer service fees and the sale of residential mortgages into the secondary market.
Market Area
The company’s headquarters are located in Thomasville, Georgia. The company primarily serves retail and small business customers located in and around Thomasville and Savannah, Georgia as well as Tallahassee and Jacksonville, Florida through the company’s branch network, and LPOs located in Tallahassee and Jacksonville, Florida.
Lending Activities
General. The company grants loans and extensions of credit to individuals and a variety of small businesses in the company’s market areas. The company’s loan portfolio generally consists of one-to-four family residential real estate loans, commercial and multi-family real estate loans, construction and land development loans, commercial and industrial loans and consumer loans.
One-to-Four Family Residential Real Estate Lending. Generally, non-owner occupied loans are booked into the company’s loan portfolio on balloon terms with amortizations up to 20 years. The company also originates single family owner occupied loans for sale in the secondary market.
The company’s one-to-four family owner occupied residential real estate loans are generally underwritten to internal guidelines and/or that of the company’s investors. The company generally follows documentation practices of Fannie Mae and Freddie Mac guidelines. The significant majority of the company’s one-to-four family residential real estate loans are secured by properties located in its primary market area.
The company’s one-to-four family owner occupied residential real estate loans typically have terms of up to 30 years. The company’s adjustable-rate loans typically have five, seven or ten year fixed interest periods and then adjust annually with amortization terms of up to 30 years.
The company’s one-to-four family non-owner occupied residential real estate loans typically have fixed rates and have balloon terms of five to seven years. The company offers one home equity line of credit with an interest only option and a ten-year term. These loans are generally limited primarily to borrowers’ personal primary residences and to those borrowers who reside within the company’s primary market area with acceptable credit ratings. These loans can be secured either by a first or second lien position.
The company does not offer loans that provide for negative amortization of principal, such as ‘Option ARM’ loans, where the borrower can pay less than the interest owed on the loan, resulting in an increased principal balance during the life of the loan. The company does not offer ‘subprime loans’ on one-to-four family residential real estate loans (i.e., generally loans to borrowers with credit scores less than 620).
Commercial and Multi-Family Real Estate Loans. The company’s commercial real estate loans include both owner occupied, as well as investment properties. They are secured by office buildings, farms, retail and mixed-use properties, churches, warehouses and restaurants, substantially all located in the company’s market areas. The company’s multi-family real estate loans are secured by apartments, mobile home parks or other multi-family properties, substantially all located in the company’s market areas.
Most of the company’s commercial real estate loans are balloons with a five to seven year initial term and a 20-year amortization period, although the company does originate loans that fully amortize over 20 years.
Construction and Land Development Loans. The company makes construction loans to individuals for the construction of their primary or secondary residences or commercial structures, as well as loans to contractors and builders of single-family homes. The company also makes land development loans to complement its construction lending activities, as such loans are generally secured by lots that will be used for residential development. Land development loans also include loans secured by land purchased for investment purposes, as well as loans secured by farmland.
The company also originates construction loans for commercial development projects, including retail buildings, churches, small industrial, hotels and office buildings. Most of the company’s construction loans are interest-only loans that provide for the payment of interest during the construction phase, which is usually up to 12 months.
Commercial and Industrial Loans. The company makes commercial and industrial loans, primarily in the company’s market area, to a variety of professionals, sole proprietorships and small businesses. These loans are generally secured by business assets, and the company may support this collateral with junior liens on real property.
Commercial lending products include term loans and revolving lines of credit. Commercial loans and lines of credit are made with either adjustable or fixed rates of interest. The company is focusing its efforts on experienced, growing small- to medium-sized, privately-held companies with solid historical financial performance and projected cash flow that operate in the company’s market areas.
The company’s largest commercial and industrial loan is secured primarily with commercial vehicles of the company.
Consumer Loans. The company offers a limited range of consumer loans, principally to customers residing in the company’s primary market areas with other relationships with the company and with acceptable credit ratings. The company’s consumer loans generally consist of loans secured by deposit accounts, loans on new and used automobiles and unsecured personal loans.
Investment Activities
As of December 31, 2023, the company’s securities included U.S. treasuries, municipal bonds, mortgage-backed securities, collateral mortgage obligations, commercial mortgage-backed securities, and corporate obligations.
Deposits
The company’s deposits are generated primarily from the company’s branch banking network. The company’s primary deposit products are personal checking accounts, business checking accounts, savings accounts, money market accounts and certificates of deposit. Deposit account terms vary, with the principal differences being the minimum balance required, the amount of time the funds must remain on deposit and the interest rate. In addition, the company utilizes brokered deposits as an additional source of funding and as a balance sheet management tool.
Supervision and Regulation
As a bank holding company, the company is subject to examination and supervision by, and is required to file certain reports with, the Board of Governors of the Federal Reserve System (‘Federal Reserve Board’). The company is also subject to the rules and regulations of the SEC under the federal securities laws.
As a federal savings bank, TC Federal Bank is subject to examination, supervision and regulation, primarily by the Office of the Comptroller of the Currency (‘OCC’), and secondarily, by the Federal Deposit Insurance Corporation (‘FDIC’) as deposits insurer. The federal system of supervision and regulation establishes a comprehensive framework of activities in which the bank may engage and is intended primarily for the protection of depositors and the FDIC’s Deposit Insurance Fund.
The bank is also regulated to a lesser extent by the Federal Reserve Board, which governs the reserves to be maintained against deposits and other matters. In addition, the bank is a member of and owns stock in the Federal Home Loan Bank of Atlanta.
As a covered savings association, the bank is not required to comply with the lending limits established by the Home Owners’ Loan Act that are applicable to federal savings associations.
The Consumer Financial Protection Bureau has broad rule-making authority for a wide range of consumer protection laws that apply to all banks and savings institutions such as the bank, including the authority to prohibit ‘unfair, deceptive or abusive’ acts and practices.
The bank is primarily supervised by the OCC. The bank is required to file reports with and is subject to periodic examination by the OCC. The bank is required to pay assessments to the OCC to fund the agency’s operations.
The bank received a ‘satisfactory’ Community Reinvestment Act rating in its most recent federal examination.
The bank’s authority to extend credit to its directors, executive officers and 10% stockholders, as well as to entities controlled by such persons, is governed by the requirements of Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O of the Federal Reserve Board.
The Deposit Insurance Fund of the FDIC insures deposits at FDIC insured financial institutions such as the bank.
Under privacy protection provisions of the Gramm-Leach-Bliley Act of 1999 and related regulations, the company is limited in its ability to disclose non-public information about consumers to nonaffiliated third parties. The bank is a member of the Federal Home Loan Bank System.
The Bank’s operations are also subject to federal laws applicable to credit transactions, such as the:
Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers;
Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;
Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;
Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies;
Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies;
Truth in Savings Act; and
rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.
The operations of the bank also are subject to the:
Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records;
Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services;
Check Clearing for the 21st Century Act (also known as ‘Check 21’), which gives ‘substitute checks,’ such as digital check images and copies made from that image, the same legal standing as the original paper check;
The USA PATRIOT Act, which requires savings banks to, among other things, establish broadened anti-money laundering compliance programs, and due diligence policies and controls to ensure the detection and reporting of money laundering. Such required compliance programs are intended to supplement existing compliance requirements that also apply to financial institutions under the Bank Secrecy Act and the Office of Foreign Assets Control regulations; and
The Gramm-Leach-Bliley Act, which places limitations on the sharing of consumer financial information by financial institutions with unaffiliated third parties. Specifically, the Gramm-Leach-Bliley Act requires all financial institutions offering financial products or services to retail customers to provide such customers with the financial institution’s privacy policy and provide such customers the opportunity to ‘opt out’ of the sharing of certain personal financial information with unaffiliated third parties.
The company is a bank holding company within the meaning of the Bank Holding Company Act of 1956, as amended, and is registered with the Federal Reserve Board and subject to the regulation, examination, supervision and reporting requirements applicable to bank holding companies.
The company’s common stock is registered with the SEC under the Securities Exchange Act of 1934, as amended, and the company is subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934.
History
TC Bancshares, Inc. was founded in 1934. The company was incorporated under the laws of the state of Georgia in 2021.
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