#United States #Mineola #Texas Community Bancshares #Broadstreet Bank #TCBS

Texas Community Bancshares, Inc. Reports Strong Financial Results for Q1 2026

Texas Community Bancshares, Inc., the parent company of Broadstreet Bank, recently announced its financial performance for the first quarter of 2026. The results demonstrate a noteworthy net income of $836,000 for the quarter ending March 31, 2026, which marks a substantial increase compared to $643,000 during the same period last year. This impressive 30% growth not only highlights the company's strong position but also sets a record, marking the sixth consecutive quarter of profitability in its 92-year history.

Jason Sobel, President and CEO, expressed enthusiasm over the company's performance, emphasizing that the first quarter's results have already surpassed the full-year net income from 2021 by more than 150%. Sobel noted, "We are encouraged by the continued momentum across our key financial measures."

The company noted that it currently holds over $80 million in its loan portfolio with interest rates below 4%. As market rates rise, these loans can be refinanced, thus optimizing the bank's overall profitability. With strong demand for loans, Texas Community Bancshares is on the verge of reaching its growth targets. The bank also focused on reducing its funding costs by increasing its lower-cost deposit base, further solidifying its financial standing.

In its pursuit of modernization, Texas Community Bancshares has automated various segments of its loan processing and is now issuing tap-to-pay cards directly on-site. The company is also enhancing customer service with ATMs that accept deposits, catering to transactions that cannot be processed via mobile deposits.

Looking forward, the bank is set to expand into new markets, particularly the outer regions of the Dallas-Fort Worth (DFW) area. They recently broke ground in Terrell, Texas, where projected growth suggests that it could soon become the fourth bank in a locale with substantial banking interest, boasting over $1 billion in deposits.

Last year, the bank faced challenges with two significant real estate relationships, which resulted in foreclosures. However, the associated properties, now classified as 'Other Real Estate Owned,' are in sought-after locations. One of the properties is located in the DFW area and is currently being marketed for sale, attracting significant attention.

In the context of today's complex economic landscape, Sobel remains confident about the bank's adaptability and preparedness for what lies ahead. With a diverse range of mechanisms in place, the institution is positioned to benefit in various scenarios – whether interest rates rise or fall, or if loan demand fluctuates. A robust influx of variable-rate assets provides the bank with additional leverage against ever-changing market conditions.

Sobel summarized their resilience and strategic approach by stating, "We feel we are stronger, more efficient, and better positioned than ever to capitalize on opportunities that arise in 2026."

Financial Highlights

• - Net Interest Income: Increased by 3.1% to $3.4 million for Q1 2026, up from $3.3 million in Q1 2025.
• - Noninterest Income: Rose by 51.1% to $698,000, attributed largely to rental income from a multifamily property and referral fees related to financial transactions.
• - Total Assets: Increased by 0.1% to $430.4 million, driven by growth in deposits and interest-bearing resources.
• - Deposit Growth: Total deposits grew by $4.1 million, totaling $332.0 million at the end of March.
• - Asset Quality: Nonperforming assets decreased marginally, indicating the bank's strong loan portfolio integrity.

In summary, Texas Community Bancshares, Inc. continues to thrive in a competitive market, demonstrating substantial growth and strategic planning aimed at ensuring long-term success. The company is dedicated to upholding its commitments to shareholders while facilitating expansion and optimizing its services in response to market dynamics.