Texas Community Bancshares, Inc.

What they do

The company conducts operations primarily through its wholly owned subsidiary, Broadstreet Bank, a Texas-chartered savings bank. It was incorporated in March 2021 as the holding company for the Bank upon the conversion of Mineola Community Mutual Holding Company from mutual to stock form, completed July 14, 2021, at which time it issued 3,257,759 shares at $10.00 per share. Management describes a lending mix weighted toward 1-4 family real estate in its market area along with commercial real estate and development loans.

Revenue drivers

• Net interest income (loans) — Loan interest was $4.7 million in Q1 2026, up 5.8% from $4.4 million a year earlier, with loan yields rising 26 basis points to 6.14%; loans are the largest earning-asset category, with $303.2 million net loans and leases at December 31, 2025.
• Securities portfolio — Securities generated interest income that declined $266,000, or 25.9%, in Q1 2026 as average securities fell $18.1 million, or 18.8%, to $78.0 million, and the average yield dropped 37 basis points to 3.91%.
• Deposit funding spread — Net interest income rose 3.1% to $3.4 million in Q1 2026 mainly because interest expense fell $167,000 as average interest-bearing deposits declined $10.4 million to $283.2 million and their cost fell 12 basis points to 2.33%.
• Mortgage banking revenue — The company identifies mortgage banking revenues as a component of results and notes the fair value of its mortgage servicing rights asset as rate-sensitive, though no separate figure is disclosed in the provided excerpts.

Recent performance

Net income was $836,000 for the three months ended March 31, 2026, up from $643,000 for the same period in 2025, a 30.0% increase. Net interest income rose $103,000, or 3.1%, to $3.4 million, driven by a $167,000 decrease in interest expense. Interest income fell $64,000, or 1.1%, to $5.6 million as lower securities income offset higher loan interest. The provision for credit losses was $6,000 for the quarter. Full-year net income was $518,000 in 2021, $1.8 million in 2022, negative $733,000 in 2023, negative $1.3 million in 2024, and $2.8 million in 2025.

Strategy

Management says it is now poised for growth and plans to enter the outer DFW market, having broken ground in Terrell, Texas, during the first quarter of 2026. The company expects to be the fourth bank in a market it describes as having more than $1 billion in deposits. It is modernizing operations by automating portions of loan processing, issuing tap-to-pay cards on site, and deploying deposit-accepting ATMs. Management also cites over $80 million in the loan portfolio at rates of 4% or less that will pay down and be replaced with loans at current market rates. It says it is evaluating options to expand market share, optimize the branch network, and grow the client base.

Risks

• Concentrated 1-4 family real estate lending — The 10-Q specifically flags risks related to a high concentration of loans secured by 1-4 family real estate located in the company's market area.
• Commercial real estate and development exposure — The company also identifies risks related to higher levels of commercial real estate and development loans, and to fluctuation in demand for construction loans in its market area.
• Interest rate and margin pressure — Changes in market rates affect yields on assets, funding costs, mortgage banking revenue, the fair value of securities and mortgage servicing rights, and loan origination levels.
• Credit quality and OREO — Management disclosed foreclosing on two large real estate relationships in the prior year and moving the underlying collateral to Other Real Estate Owned, both still being marketed for sale.

Outlook

Management states it is positioned to benefit across a range of rate and demand scenarios, with flexible funding and more variable-rate assets than before. It points to favorable loan demand supporting growth targets and a growing lower-cost deposit base. It says it remains committed to executing its strategic growth plan while creating long-term shareholder value. No specific numeric guidance is provided in the excerpts.