[8-K] Texas Community Bancshares, Inc. Reports Material Event

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(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Texas Community Bancshares, Inc. reported unaudited net income of $836,000 for the quarter ended March 31, 2026, up from $643,000 a year earlier, a 30.0% increase and its sixth consecutive record quarter.

Net interest income rose to $3.4 million as interest expense fell and loan yields improved to 6.14%. Net interest margin expanded to 3.49% from 3.24%, helped by lower-cost deposits and reduced funding costs. Noninterest income grew 51.1% to $698,000, driven by rental income from a foreclosed multifamily property and a referral fee on a multifamily loan payoff.

Total assets were $430.4 million at March 31, 2026. Loans and leases receivable, net, were $298.5 million, reflecting a large multifamily payoff, while total deposits increased to $332.0 million with growth in noninterest-bearing accounts. Asset quality remained solid, with nonperforming assets at 2.60% of total assets and past due loans at 0.91% of the loan portfolio. Shareholders’ equity increased to $54.2 million, and Broadstreet Bank reported a leverage ratio of 11.97%, remaining well capitalized.

Insights

Q1 2026 shows stronger profitability, better margin, and stable asset quality.

Texas Community Bancshares grew quarterly net income to $836,000, up 30.0% year over year, marking a sixth consecutive record quarter. Net interest income increased modestly, but the more notable shift was in mix: lower interest expense and higher loan yields lifted core profitability.

Net interest margin expanded to 3.49% from 3.24%, as the bank reduced average interest-bearing deposits and Federal Home Loan Bank advances while adding lower-cost deposits. Average loan yields rose to 6.14%, though overall interest income dipped slightly as securities balances and yields declined.

Asset quality metrics remain relatively strong: nonperforming assets were $11.2 million, or 2.60% of total assets, and the allowance for credit losses stood at 1.14% of loans at March 31, 2026. Capital stayed solid with shareholders’ equity at $54.2 million and a bank leverage ratio of 11.97%. Subsequent filings may provide more detail on loan growth from the planned Terrell, Texas expansion.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Net income: $836,000 Net interest income: $3.431 million Net interest margin: 3.49% +5 more

8 metrics

Net income $836,000 Three months ended March 31, 2026; up from $643,000 in 2025

Net interest income $3.431 million Three months ended March 31, 2026; vs. $3.328 million in 2025

Net interest margin 3.49% Quarter ended March 31, 2026; up from 3.24% in 2025

Total assets $430.446 million Balance at March 31, 2026; slightly above $429.842 million at Dec. 31, 2025

Total deposits $331.957 million Balance at March 31, 2026; up from $327.904 million at Dec. 31, 2025

Nonperforming assets ratio 2.60% of total assets Nonperforming assets $11.2 million at March 31, 2026; down from 2.65%

Allowance for credit losses ratio 1.14% Allowance to total loans and leases at March 31, 2026

Leverage ratio 11.97% Broadstreet Bank regulatory capital leverage ratio at March 31, 2026

Key Terms

net interest margin, Other Real Estate Owned, allowance for credit losses, nonperforming assets, +2 more

6 terms

net interest margin financial

"Net interest margin increased 25 basis points, or 7.6%, to 3.49% for the three months ended March 31, 2026"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

Other Real Estate Owned financial

"The foreclosed property is currently held in Other Real Estate Owned. It is over 90% occupied"

Assets a lender or financial firm holds after taking back real property through foreclosure or repossession because a borrower defaulted. Think of it like a store keeping returned items it didn’t sell — these properties are not earning interest, can be costly to maintain, and may be sold at a loss or profit, so they directly affect a lender’s balance sheet, cash flow and perceived credit risk for investors.

allowance for credit losses financial

"At March 31, 2026, the allowance for credit losses to total loans and leases was 1.14%."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

nonperforming assets financial

"Nonperforming assets decreased $235,000, or 1.8%, to $11.2 million, or 2.60% of total assets"

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

Federal Home Loan Bank financial

"Advances from the Federal Home Loan Bank decreased $4.1 million, or 9.0% to $41.6 million"

A Federal Home Loan Bank is one of a group of regional cooperative banks that provide low-cost loans and short-term cash to local banks and credit unions so those institutions can lend for mortgages, community projects and other housing needs. Think of it as a shared emergency fund and wholesale lender for lenders; its actions affect how easily banks can extend credit, which influences mortgage availability, bank stability and related bond markets that investors watch.

accumulated other comprehensive loss financial

"This was partially offset by a $309,000 increase in accumulated other comprehensive loss, net of tax"

Accumulated other comprehensive loss is the running negative total of certain gains and losses that companies record outside their regular profit-and-loss statement, such as changes in the value of some investments, pension adjustments, or currency translation effects. It matters to investors because it reduces shareholders’ equity and reveals economic swings that haven’t affected reported net income yet — like a side ledger showing pending ups and downs that could influence future cash flow or balance-sheet strength.

Earnings Snapshot

Net income: $836,000

Q1 2026

Net income $836,000 +30.0% YoY

Net interest income $3.431 million +3.1% YoY

Net interest margin 3.49% +0.25 percentage points YoY

Understanding 8-K Material Events →

04/24/2026 - 11:40 AM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 24, 2026

Texas Community Bancshares, Inc.

(Exact Name of Registrant as Specified in its Charter)


Maryland	001-40610	86-2760335
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(I.R.S. Employer Identification No.)

215 West Broad Street, Mineola, Texas		75773
(Address of Principal Executive Offices)		(Zip Code)

(903) 569-2602

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Common stock, par value $0.01 per share	TCBS	The Nasdaq Stock Market, LLC
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Item 2.02Results of Operations and Financial Condition.

On April 24, 2026, Texas Community Bancshares, Inc. issued a press release announcing its unaudited consolidated financial results for the three months ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01Financial Statements and Exhibits.

(d)

Exhibits


99.1	Press Release dated April 24, 2026
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		TEXAS COMMUNITY BANCSHARES, INC.


Date: April 24, 2026	By:	/S/ Jason Sobel
		Jason Sobel
		President and Chief Executive Officer

Exhibit 99.1

Company Contact:

Jason Sobel

President and Chief Executive Officer

Texas Community Bancshares, Inc.

(903) 569-2602

jsobel@broadstreet.bank

TEXAS COMMUNITY BANCSHARES, INC. REPORTS UNAUDITED FINANCIAL RESULTS FOR

THE FIRST QUARTER ENDED MARCH 31, 2026

MINEOLA, Texas; April 24, 2026 — 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 1^st 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 1^st 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 3^rd 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 1^st 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%.


		At March 31,			At December 31,
		2026			2025
			(Unaudited)
Selected Consolidated Financial Condition Data (Amounts in thousands):
Total assets		$	430,446		$	429,842
Cash and cash equivalents			6,454			6,450
Interest bearing deposits in banks			10,083			5,509
Securities available for sale			60,070			59,893
Securities held to maturity			17,521			18,283
Loans and leases receivable, net			298,501			303,205
Premises and equipment, net			13,121			11,459
Bank owned life insurance			6,587			6,544
Other real estate owned			9,104			9,271
Restricted investments carried at cost			2,805			2,773
Total deposits			331,957			327,904
Advances from the Federal Home Loan Bank			41,567			45,669
Total shareholders' equity			54,234			53,757


		For the Three Months Ended March 31,
		2026			2025

			(Unaudited)
Selected Consolidated Operating Data (Amounts in thousands):
Interest income		$	5,570			5,634
Interest expense			2,139			2,306
Net interest income			3,431			3,328
Provision for credit losses			6			113
Net interest income after provision for credit losses			3,425			3,215
Noninterest income			698			462
Noninterest expense			3,168			2,928
Income before income taxes			955			749
Income tax expense			119			106
Net income		$	836		$	643

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.

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

5 documents

Press Releases

EX-99.1 EX-99.1 97.5 KB

[8-K] Texas Community Bancshares, Inc. Reports Material Event

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