Dallas-based Tectonic Financial, Inc. has announced a significant transition in its executive leadership. Patrick Howard, the President of Tectonic Financial, and President and CEO of its wholly owned subsidiaries T Bancshares, Inc. (TBI), and T Bank, National Association, has decided to retire in 2025 and will become an executive advisor. The Boards of Directors of the company and its subsidiaries have accepted Howard's resignation, effective no later than July 31, 2025, and have appointed A. Haag Sherman as his successor.
Howard's decision to retire is voluntary and is not due to any disagreements or deficiencies in the company's operations or practices. The company has expressed gratitude to Howard for his dedicated service and contributions over the years.
Sherman, 58, will take over as President of Tectonic Financial and CEO of TBI and T Bank, following Howard's departure. Sherman has been with Tectonic Financial since October 2016 and has served in various executive roles, including executive Chairman of TBI and the Bank.
He is also known for co-founding Salient Partners, LP, and has held executive positions at The Redstone Companies. Sherman's extensive experience includes serving as a director for other public companies and involvement in education and public policy organizations.
As part of the transition, a Transition Services Agreement has been signed with Howard, ensuring a smooth handover of responsibilities to Sherman. Howard will remain employed to provide transition services until January 15, 2026, and will receive his current annual base salary, bonuses for 2024 and 2025, and a payout for up to 100,000 options of the company's common stock.
This transition is expected to occur in January 2025 or at a date agreed upon by the involved parties. The company has emphasized that there are no family relationships or reportable transactions between Sherman and any other company directors or executive officers.
The information regarding this leadership transition is based on a press release statement filed with the U.S. Securities and Exchange Commission (SEC).
In other recent news, Tectonic Financial, Inc. has announced dividends for its preferred and common stock shareholders. The Texas-based commercial bank declared a cash dividend of $0.3144353 per share for its 9.00% Fixed-to-Floating Rate Series B Noncumulative Perpetual Preferred Stock, attributed to the period from mid-May to mid-August 2024.
The company also declared a cash dividend of $0.10 per share for its common stock. These dividends are payable on August 15, 2024, to shareholders on record by the end of the business day on August 5, 2024. These financial distributions are part of Tectonic Financial's regular financial practices and reflect the company's commitment to delivering value to its shareholders. This recent development was disclosed in a recent 8-K filing with the Securities and Exchange Commission.
InvestingPro Insights
As Tectonic Financial prepares for this significant leadership transition, InvestingPro data provides valuable context for investors. The company's revenue for the last twelve months as of Q2 2024 stands at $66.24 million, with a modest quarterly revenue growth of 8.67% in Q2 2024. This growth, coupled with an operating income of $17.11 million for the same period, suggests that the incoming leadership will be taking over a company with a stable financial foundation.
One particularly noteworthy metric is Tectonic Financial's impressive dividend yield of 12.06%, with the most recent ex-dividend date on August 5, 2024. This high yield could be attractive to income-focused investors and may reflect the company's commitment to shareholder returns under Patrick Howard's leadership.
InvestingPro Tips highlight additional strengths:
1. Tectonic Financial has demonstrated strong shareholder returns through buybacks and dividends.
2. The company has maintained dividend payments for an extended period, which may be reassuring to investors during this leadership transition.
These insights, along with 11 additional tips available on InvestingPro, can help investors better understand Tectonic Financial's position as it moves into this new chapter under A. Haag Sherman's leadership.
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