0001104659-26-034560
SEC filingTexas Community Bancshares, Inc. (TCBS) reported net income of $2.8 million for FY 2025, a turnaround from a $1.3 million net loss in FY 2024, driven by higher net interest income and positive noninterest income. Total interest income remained stable at $22.5 million, while interest expense declined 7.3% to $9.2 million, boosting net interest income 6.1% to $13.3 million. Provision for credit losses rose to $831K from $158K due to loan growth and a foreclosed multi-family property. Noninterest income swung to a $3.1 million gain from a $1.9 million loss, aided by fair value adjustments and gains. Noninterest expense dipped slightly to $12.2 million. Total assets decreased 3.1% to $429.8 million, with net loans up 3.2% to $302.0 million and deposits down 2.4% to $327.9 million. Shareholders' equity grew 3.3% to $53.8 million. EPS basic reached $1 from a $0.45 loss. Operating cash flow was $1.4 million, reflecting improved profitability amid strategic loan diversification and deposit management.
Texas Community Bancshares reported FY 2025 net income of $2.8M, reversing a $1.3M net loss in 2024, primarily due to a $764K or 6.1% increase in net interest income to $13.3M and a swing in noninterest income to $3.1M gain from $1.9M loss. Provision for credit losses increased to $831K from $158K amid loan growth. Total assets fell 3.1% to $429.8M, with net loans rising 3.2% to $302.0M on commercial real estate and municipal loan expansion. Deposits declined 2.4% to $327.9M, equity up 3.3% to $53.8M. EPS basic improved to $1 from $0.45 loss.
Net interest income, the primary revenue source, grew to $13.3M from implied $12.6M prior year, with interest income stable at $22.5M but expense down 7.3% to $9.2M. Loan interest rose 11.0% to $17.7M on higher balances and yields (5.93% vs 5.63%). Securities interest fell 7.6% to $4.1M on lower balances. No geographic or product segments disclosed beyond loan portfolio mix: real estate 90.7% of gross loans $306.6M.
Net interest margin expanded 28 bps to 3.26%. Efficiency ratio improved to 74.41% from 115.24%, reflecting noninterest income recovery. Noninterest expense stable at $12.2M, with salaries down 4.5% to $6.5M offset by other expenses up 15.1% to $2.7M tied to foreclosed properties. Return on average assets 0.65% vs -0.29%; ROE 6.18% vs -3.08%.
Operating cash flow $1.4M vs $1.9M prior. Investing cash $7.7M from securities sales/maturities and loan collections. Financing outflow $15.9M on deposit decline $7.9M, FHLB paydowns, dividends $593K, treasury buys $3.2M. Liquidity strong: cash equivalents $6.5M, FHLB capacity $100.3M. Advances $45.7M; core deposits 59.2% of total.
Management focuses on loan diversification (commercial real estate up 9.6% to 20.1% of loans), core deposit growth (59.2%), and credit risk management (nonperforming assets 2.65% vs 0.62%). Asset quality monitored amid OREO increase to $9.3M. CBLR 11.74% well-capitalized. Risks include interest rates, economic conditions, competition.