TCBS

Shares of Texas Community Bancshares, Inc. TCBS have lost 0.4% since reporting results for the second quarter of 2026. This compares with the S&P 500 index’s 2.6% return over the same period. Over the past month, TCBS shares have gained 0.4%, trailing the S&P 500’s 2.6% advance. Texas Community Bancshares reported second-quarter net income of $970,000, up 43.1% from $678,000 a year earlier. Earnings per share increased 52.2% to 35 cents from 23 cents in the prior-year quarter, while basic earnings rose to 37 cents from 24 cents. Net interest income increased 15.9% year over year to $3.68 million, and non-interest income rose 26.3% to $731,000. Total interest income advanced 6.4% year over year to $5.82 million, while interest expenses declined 6.8% to $2.14 million. Texas Community Bancshares, Inc. price-consensus-eps-surprise-chart | Texas Community Bancshares, Inc. Quote The main earnings driver was stronger loan income. Interest income on loans increased 15.3% to $4.92 million as average loan balances grew 3.4% to $310.3 million and the average loan yield climbed 66 basis points to 6.35%. Management attributed those improvements to continued efforts to expand the commercial loan portfolio. The average cost of interest-bearing deposits fell 12 basis points to 2.35%, and average interest-bearing liabilities declined 2.9%. These shifts helped lift the net interest margin to 3.69% from 3.09%, outweighing a 2.8% contraction in average interest-earning assets. Securities income declined 23.8%, reflecting a 19.5% reduction in average securities following sales in the fourth quarter of 2025 and a lower portfolio yield. Thus, results were driven more by loan growth, loan pricing and cheaper deposits than by balance-sheet expansion alone. Total assets were $444.3 million as of June 30, 2026, up 3.4% from Dec. 31, 2025. Net loans and leases increased 3.6% to $314.1 million, supported by $40.5 million of originations, while deposits rose 3.6% to $339.6 million. Core deposits grew 3.4% to $200.7 million. Shareholders’ equity increased 2.6% to $55.2 million, and Broadstreet Bank’s 12.13% community bank leverage ratio remained above the 9% threshold for well-capitalized status. Deposits included $18 million of brokered deposits and $6.5 million of listed deposits. Potentially uninsured deposits were $48.9 million, or 14.4% of total deposits. FHLB advances increased 1.7% to $46.5 million, while unused FHLB borrowing capacity stood at $103.8 million. The company also had $8 million of unused correspondent-bank credit lines. Credit indicators were mixed. Non-accrual loans totaled $1.29 million, down from $2.01 million at the year-end, but loans more than 90 days past due and still accruing increased to $109,000 from $1,000. Management also identified $6 million of past-due commercial real estate loans across two relationships. One was subsequently renewed, while the property securing the second was under contract for sale, with full repayment expected. During the quarter, TCBS repurchased 13,500 common shares for $257,000 and declared a cash dividend of 6 cents per share, totaling $173,000. The provision for credit losses was $104,000 against a $42,000 reversal a year earlier, reflecting increased loan production and balances. The allowance equaled 1.13% of loans at the quarter-end. Non-interest expenses rose 6.3% to $3.16 million, driven by higher salaries and benefits, data-processing fees, and occupancy and equipment costs. Partly offsetting those pressures, non-interest income benefited from $172,000 of rental income on a foreclosed multi-family property. That asset, carried in other real estate owned, was more than 90% occupied and being marketed for sale. Other real estate owned totaled $9.1 million at quarter-end. Management described liquidity and asset quality as high priorities, with deposit balances monitored daily and stress tests conducted quarterly. The company said that the scenarios indicated sufficient operational liquidity and expects adequate funds to meet current commitments. It also anticipates retaining a significant portion of maturing time deposits. TCBS expects $37 million in cash flow from its securities portfolio over the 24 months following June 30, including $25.3 million within 12 months. The company is increasing commercial real estate, other commercial and municipal lending to diversify its loan mix. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Texas Community Bancshares, Inc. (TCBS): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MINEOLA, Texas, April 24, 2026 /PRNewswire/ -- Texas Community Bancshares, Inc. ("Texas Community Bancshares" or the "Company") (NASDAQ: TCBS), the holding company for Broadstreet Bank, SSB, today reported net income of $836,000 for the three months ended March 31, 2026, compared to net income of $643,000 for the three months ended March 31, 2025. Texas Community Bancshares' President and Chief Executive Officer (CEO) Jason Sobel, said, "I am pleased to report continued momentum across our key financial measures. Net income increased to $836,000 for the quarter, up from $643,000 in the 1st quarter of 2025, representing a 30.0% improvement compared to the same period last year. This marks our sixth consecutive record quarter in our 92-year history. In addition, compared to 2021, the year in which we went public—when full-year net income was $518,000—we have already generated more than 150% of that amount in the first quarter of 2026." "We still have over $80 million in our loan portfolio at rates of 4% or less that will continue to pay down and be replaced with new loans at current market rates. Currently, we are seeing favorable loan demand that is helping us reach our growth target. We have also grown our lower cost deposit base, which is helping reduce our funding costs." "The bank has continued to modernize by automating portions of our loan processing, issuing tap-to-pay cards on site, and deploying ATMs that accept deposits for transactions that cannot be completed through mobile deposit." "As we continue to meet our improvement targets, we are now poised for growth. We plan to enter the outer DFW market and broke ground this quarter in Terrell, Texas. With the area experiencing significant expansion, we expect to be the fourth bank in a market with more than $1 billion in deposits." "Last year, we foreclosed on two large real estate relationships and moved the underlying collateral properties to Other Real Estate Owned. Both are located in desirable areas – one in our primary market area, and one in the DFW metroplex. Each property is being marketed for sale, and we have received strong interest." "There is a lot of noise in the economy today, and we believe we are positioned to benefit across a range of scenarios. If rates rise, we can replace low-rate loans with higher-yielding credits. If rates decline, we can lower our funding costs. If loan demand increases, we are prepared to grow. If loan demand slows, we can meaningfully pay down non-core funding to reduce interest expense and adjust fixed-rate deposit costs to improve efficiency. We also have more variable-rate assets than ever before, which provides additional flexibility in changing market conditions." "We continue to believe we are stronger, more efficient, and better positioned than ever to capitalize on opportunities in 2026. We will continue to work with trusted partners as we evaluate options to expand our market share, optimize our branch network, and grow our client base. We remain committed to executing our strategic growth plan while creating long-term value and returns for our shareholders." Results of Operations Net interest income increased $103,000, or 3.1%, to $3.4 million for the three months ended March 31, 2026 from $3.3 million for the three months ended March 31, 2025 due to a decrease in interest expense of $167,000. This resulted primarily from a reduction of $10.4 million, or 3.5%, in average interest-bearing deposits from $293.6 million for the three months ended March 31, 2025 to $283.2 million for the three months ended March 31, 2026. Additionally, the cost of interest-bearing deposits decreased 12 basis points over the same period to 2.33% for the three months ended March 31, 2026 from 2.45% for the same period in 2025. Interest income for the three months ended March 31, 2026 decreased $64,000, or 1.1% to $5.6 million. Loan interest increased by $254,000, or 5.8% to $4.7 million for three months ended March 31, 2026 from $4.4 million for the three months ended March 31, 2025. Loan yields increased 26 basis points, or 4.4%, to 6.14% for the three months ended March 31, 2026 from 5.88% for the same period in 2025. This was offset by a decrease of $266,000, or 25.9%, in interest on securities. Average securities decreased $18.1 million, or 18.8%, to $78.0 million for the three months ended March 31, 2026 from $96.1 million for the same period in 2025. The average yield on securities also decreased 37 basis points, or 8.7% to 3.91% for the three months ended March 31, 2026 from 4.28% for the same period in 2025. The provision for credit losses was $6,000 for the three months ended March 31, 2026, a decrease of $107,000, or 94.7% compared to $113,000 for the three months ended March 31, 2025 primarily due to a $4.7 million decrease in loans in the 1st quarter of 2026 and changes in the composition of the loan portfolio. Net interest income after provision for credit losses was $3.4 million for the first quarter of 2026, compared to $3.2 million for the same period in 2025. Noninterest income increased $236,000, or 51.1%, to $698,000 for the three months ended March 31, 2026, compared to $462,000 for the same period in 2025. This was due primarily to $168,000 in rental income on a multifamily property foreclosed on in the 3rd quarter of 2025, as well as a $57,000 referral fee earned in connection with the payoff and transfer of an existing multifamily loan to capital markets. The foreclosed property is currently held in Other Real Estate Owned. It is over 90% occupied and is currently being marketed for sale. Noninterest expense increased $240,000, or 8.2%, to $3.2 million for the three months ended March 31, 2026 from $2.9 million for the same period in 2025. This was due primarily to $104,000 in expense related to the foreclosed multifamily noted previously, and a $77,000 increase in technology expense related to the implementation of an online loan origination and account opening platform. Net interest margin increased 25 basis points, or 7.6%, to 3.49% for the three months ended March 31, 2026, compared to 3.24% for the three months ended March 31, 2025. Average interest-earning assets were $393.8 million for the three months ended March 31, 2026, compared to $411.0 million for the same period in 2025, and the yield on average interest-earning assets increased to 5.66% from 5.48% over the same period. Average interest-bearing liabilities decreased to $328.7 million for the three months ended March 31, 2026, compared to $343.8 million for the same period in 2025, and the cost of interest-bearing liabilities decreased to 2.60% from 2.68% over the same period. Financial Condition Total assets increased $604,000, or 0.1%, to $430.4 million at March 31, 2026, compared to $429.8 million at December 31, 2025. Interest bearing deposits in banks increased $4.6 million, or 83.6%, to $10.1 million, from $5.5 million at December 31, 2025. Loans and leases receivable, net, decreased $4.7 million, or 1.6% to $298.5 million at March 31, 2026, compared to $303.2 million at December 31, 2025 following the payoff of a large multifamily loan in the first quarter of 2026. Total securities, including both available for sale and held to maturity securities, decreased $585,000, or 0.8%, to $77.6 million at March 31, 2026 compared to $78.2 million at December 31, 2025 due to maturities and paydowns, and partially offset by purchases made in the 1st quarter of 2026. Total deposits increased $4.1 million, or 1.3%, to $332.0 million at March 31, 2026, compared to $327.9 million at December 31, 2025, with most of this growth in non-interest bearing deposit accounts. Advances from the Federal Home Loan Bank decreased $4.1 million, or 9.0% to $41.6 million at March 31, 2026, compared to $45.7 million at December 31, 2025, as two advances totaling $4.0 million were repaid prior to maturity. Asset Quality Net chargeoffs remain low and the quality of the loan portfolio remains strong. At March 31, 2026, past due loans represented 0.91%, and nonaccrual loans represented 0.65%, of the loan portfolio. At March 31, 2026, the allowance for credit losses to total loans and leases was 1.14%. Nonperforming assets decreased $235,000, or 1.8%, to $11.2 million, or 2.60% of total assets, at March 31, 2026, compared to $11.4 million, or 2.65% of total assets, at December 31, 2025, primarily due to the sale of one bank owned property that was previously held for future expansion, but subsequently transferred to other real estate owned. Shareholders' Equity Total shareholders' equity increased $477,000, or 0.9%, to $54.2 million at March 31, 2026 from $53.8 million at December 31, 2025. This increase was primarily due to net income for the three months ended March 31, 2026 of $836,000, an increase of $37,000 from stock based compensation expense, and an increase of $56,000 from the accrual of ESOP commitments. This was partially offset by a $309,000 increase in accumulated other comprehensive loss, net of tax, and quarterly dividends paid totaling $143,000. At March 31, 2026, Broadstreet Bank was well capitalized and had a leverage ratio of 11.97%. About Texas Community Bancshares, Inc. Texas Community Bancshares, Inc. is the holding company for Broadstreet Bank, SSB (the "Bank"). The Bank operates seven full-service branch locations in Texas in Wood, Smith and Van Zandt counties with the home office being located in Mineola, Texas. Texas Community Bancshares is traded on the NASDAQ Capital Market Exchange under the symbol "TCBS." Statement About Forward-Looking Statements Statements contained in this news release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the Company's operations and future prospects include, but are not limited to, general and local economic conditions; changes in market interest rates, deposit flows, demand for loans, and real estate values; competition; competitive products and pricing; the ability of the Company's customers to make scheduled loan payments; loan delinquency rates and trends; the Company's ability to manage the risks involved in its business; the Company's ability to control costs and expenses; inflation, and market and monetary fluctuations; changes in federal and state legislation and regulations applicable to the Company's business; and other factors that may be disclosed in the Company's periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation. View original content to download multimedia:https://www.prnewswire.com/news-releases/texas-community-bancshares-inc-reports-unaudited-financial-results-for-the-first-quarter-ended-march-31-2026-302753063.html

MINEOLA, Texas, Aug. 1, 2025 /PRNewswire/ -- Texas Community Bancshares, Inc. ("Texas Community Bancshares" or the "Company") (NASDAQ: TCBS), the holding company for Broadstreet Bank, SSB, today reported net income of $678,000 for the three months ended June 30, 2025 and $1.3 million for the six months ended June 30, 2025 compared to net income of $348,000 for the three months ended June 30, 2024 and a net loss of $2.3 million for the six months ended June 30, 2024. Texas Community Bancshares' President and Chief Executive Officer (CEO) Jason Sobel, said, "We are thrilled about the trend we are seeing in our net income. It increased from $643,000 in the first quarter of 2025 to $678,000 in the second quarter for five straight quarters of increased earnings. This has led us to our best quarter since our initial public offering (IPO) 4 years ago. We believe that with the growth of net interest income from $6.1 million for the first half of 2024 to $6.5 million for same period in 2025 we are continuing to see the earnings impact of repositioning the balance sheet completed last year and the ongoing improvements in efficiency. The driving forces of the increased earnings are higher yielding commercial loans and relationships, continued focus on loan and deposit pricing to further expand net interest margin, and managing expenses closely. We are excited about the future and our goal is to continue to build a rewarding experience for our customers, shareholders and employees." "The bank has invested more than ever into new technology and new products, including an automated consumer loan process from application to funding, online account opening, and online mortgage products. We are setting up deposit taking ATMs and working on making our products more focused on the customer, including new Treasury Management products, and one-time-close home improvement loans. We are dedicated to finding the needs of our clients and filling them." "This quarter we had two large loan relationships on our over 90-day delinquent list. They are both well collateralized real estate projects with loan-to-values below 65%. One involves a $6.2 million multi-family project and the other a $2.8 million land development project. Both clients are working to resolve their respective issues as quickly as possible, but they have been placed on nonaccrual while they work through it." "We believe we are stronger and better positioned to capitalize on opportunities in 2025. Daily we are looking at ways to enhance our market share, branch network, and client base. We remain committed to executing our strategic growth plan while creating long-term value for our shareholders." Income Net interest income increased $356,000, or 5.8%, to $6.5 million for the six months ended June 30, 2025 from $6.1 million for the six months ended June 30, 2024 due to a decrease in interest expense of $347,000. This resulted primarily from a reduction of $22.0 million, or 30.9%, in FHLB advances from $71.2 million at June 30, 2024 to $49.2 million at June 30, 2025. Deposit interest expense remained relatively flat in the first six months of 2025 when compared to the prior year, even though deposit balances increased $14.6 million, or 4.5%, from $324.6 million at June 30, 2024 to $339.2 million at June 30, 2025. The increase in deposits included an additional $10.0 million in brokered deposits added at the end of 2024. Total interest income remained flat for the first six months of 2025 compared with 2024, but declined $207,000 in the three months ended June 30, 2025 compared to 2024. This was due primarily to a reversal of accrued interest of $217,000 from the two large loan relationships previously mentioned being placed on nonaccrual status. Interest expense decreased $347,000, or 7.0% to $4.6 million for the six months ended June 30, 2025 from $5.0 million for the six months ended June 30, 2024 with $198,000 of that decrease occurring in the three months ended June 30, 2025. This is due primarily to a reduction of $22.0 million, or 30.9% in FHLB advances from $71.2 million at June 30, 2024 to $49.2 million at June 30, 2025. This resulted in a decrease of $182,000 in interest on FHLB advances in the second quarter of 2025, and a $375,000 decrease in the six months ended June 30, 2025 when compared to the prior year. Despite the increase in deposit balances, interest on deposits remained flat due to decreases in deposit rates. For the six months ended June 30, 2024, noninterest income includes the loan sale loss, a real estate owned write down and a property disposal cost associated with a new branch. Noninterest expense includes expenses related to branch and building projects in 2024. To keep comparisons meaningful, we will only address quarterly details here. Noninterest income increased $186,000, or 47.3%, to $579,000 for the three months ended June 30, 2025 from $393,000 for the three months ended June 30, 2024. This was due primarily to a $73,000 gain on an equity investment, a $78,000 loss on other real estate owned in 2024, and a $69,000 loss on loans sold in 2024. This was partially offset by a $72,000 decrease in other service charges and fee income. Noninterest expense decreased $224,000, or 3.7%, for the six months ending June 30, 2025 and $81,000, or 2.7%, to $3.0 million for the three months ended June 30, 2025 from $3.1 million for the three months ended June 30, 2024 primarily due to decreases in technology expense and salary and employee benefits. This was partially offset by an increase in other expenses: Technology expenses decreased $113,000, or 59.8%, primarily due to card processing project implementation fees incurred in the first half of 2024 associated with a "tap" debit card project. Salary and employee benefit expenses decreased by $75,000, or 4.6%, to $1.6 million for the three months ended June 30, 2025, due primarily to reduced officer compensation of $48,000 and reduced compensation expense related to equity awards of $30,000, including a $26,000 one-time accrual reversal for awards forfeited, and lower director fees due to a reduction in the number of directors. In May 2024, the number of Directors decreased from 14 to 12 and in May of 2025, the number of Directors decreased to nine, which will result in a decrease in director fees of $18,000 per quarter going forward. Other expenses increased by $120,000, or 21.3%, to $684,000 for the three months ended June 30, 2025 from $564,000 for the three months ended June 30, 2024. This is due to a $51,000 increase in audit and accounting expenses for additional internal audits and audit price adjustments, a $47,000 increase in marketing expense following the engagement of an outside consultant and a new advertising campaign including local television and streaming services, and $28,000 in expense related to an equity investment. Asset Quality The Company recorded a provision for credit losses of $71,000 for the six months ended June 30, 2025, compared to a provision for credit loss reversal of $153,000 for the six months ended June 30, 2024, resulting in an increase of $224,000, or 146.4%, in the provision for credit losses primarily due to an increase in average loans of $21.1 million and changes in the composition of the loan portfolio. Net chargeoffs remain low and the quality of the loan portfolio remains strong, despite an increase in delinquencies and nonaccrual loans. At June 30, 2025, past due loans represented 3.71%, and nonaccrual loans 3.58%, of the loan portfolio. The increase in past due and nonaccrual loans is related to the two loan relationships previously mentioned with a total balance of $9.0 million that are well secured by real estate. One relationship involves a $6.2 million construction loan secured by a newly constructed multi-family property in our market area. This loan is fully funded and construction is complete. The second relationship for $2.8 million is secured by land purchased for development purposes. Both loan relationships are below 65% loan to value. Other real estate owned consists of two bank properties that were held for future expansion and are currently listed for sale, and have been marked to a fair value of $428,000. Shareholders' Equity Total shareholders' equity increased $761,000, or 1.5%, to $52.9 million at June 30, 2025 from $52.1 million at December 31, 2024. This increase was primarily due to net income for the six months ended June 30, 2025 of $1.3 million, a $608,000 decrease in accumulated other comprehensive loss, net of tax, an increase of $305,000 from vesting of the 2022 Equity Plan, and an increase of $110,000 from the accrual of ESOP commitments. This was partially offset by the repurchase of 84,500 shares of the Company's common stock at $1.3 million and quarterly dividends paid totaling $242,000. At June 30, 2025, Broadstreet Bank was well capitalized and had a leverage ratio of 11.32% About Texas Community Bancshares, Inc. Texas Community Bancshares, Inc. is the holding company for Broadstreet Bank, SSB (the "Bank"). The Bank operates in Texas in Wood, Smith and Van Zandt counties with the home office being located in Mineola, Texas. In the first quarter of 2024, the Bank opened a new branch in Tyler, Texas and a new building for the Lindale branch bringing the Bank's operations to seven full-service branch locations. Texas Community Bancshares is traded on the NASDAQ Capital Market Exchange under the symbol "TCBS." Statement About Forward-Looking Statements Statements contained in this news release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the Company's operations and future prospects include, but are not limited to, general and local economic conditions; changes in market interest rates, deposit flows, demand for loans, and real estate values; competition; competitive products and pricing; the ability of the Company's customers to make scheduled loan payments; loan delinquency rates and trends; the Company's ability to manage the risks involved in its business; the Company's ability to control costs and expenses; inflation, and market and monetary fluctuations; changes in federal and state legislation and regulations applicable to the Company's business; and other factors that may be disclosed in the Company's periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation. View original content to download multimedia:https://www.prnewswire.com/news-releases/texas-community-bancshares-inc-reports-unaudited-financial-results-for-the-second-quarter-ended-june-30-2025-302519908.html SOURCE Texas Community Bancshares, Inc.