Group 1 - Texas Community Bancshares, Inc. declared a quarterly cash dividend of $0.04 per share of common stock, payable on or about September 26, 2024, to stockholders of record as of September 12, 2024 [1] - Broadstreet Bank, SSB, the subsidiary of Texas Community Bancshares, operates seven locations in northeast Texas and has grown to $450 million in assets since its establishment in 1934 [2] - The bank offers full-service personal and business banking, as well as residential and commercial real estate lending, leveraging its 90 years of experience to create financial opportunities for the communities it serves [2]

Financial Position - Total assets increased by $11.8 million, or 2.6%, to $463.8 million at March 31, 2024, from $452.0 million at December 31, 2023[151]. - Cash and cash equivalents rose by $7.9 million, or 60.3%, to $21.0 million at March 31, 2024, primarily due to a strategic loan sale of $12.4 million[152]. - Interest bearing deposits in banks increased by $16.2 million, or 131.7%, to $28.5 million at March 31, 2024, driven by net purchases of $5.0 million in Qwickrate CDs and an increase in excess cash[153]. - Total deposits increased by $14.6 million, or 4.6%, to $331.8 million at March 31, 2024, with core deposits increasing by $11.3 million, or 5.7%[158]. - The company had outstanding advances of $76.5 million from the Federal Home Loan Bank of Dallas and unused borrowing capacity of $81.2 million[186]. - The Bank's FHLB borrowing capacity is $81.2 million, with an additional $15 million in unused credit lines available[200]. Loan and Lease Activity - The company reported a decrease in net loans and leases of $12.4 million, or 4.4%, from $279.9 million at December 31, 2023, to $267.5 million at March 31, 2024[151]. - Net loans and leases receivable decreased by $12.4 million, or 4.4%, to $267.5 million at March 31, 2024, primarily due to the sale of a block of 54 performing loans[156]. - The company sold 54 performing loans totaling $12.4 million at a loss of $1.5 million as part of a portfolio repositioning strategy[151]. - The Bank is strategically increasing lending in commercial real estate (CRE) and other commercial lending to balance its loan portfolio, with plans to sell $30 million in loans[197]. Credit Losses and Allowance - The allowance for credit losses increased from $1.8 million at December 31, 2022, to $2.8 million upon adoption of the CECL methodology on January 1, 2023[144]. - The company’s total allowance for credit losses was deemed adequate at March 31, 2024, and is reviewed quarterly by the board of directors[145]. - As of March 31, 2024, the allowance for credit losses to loans and leases held for investment was 1.10%, indicating strong asset quality[197]. - Provision for credit losses showed a reversal of $277,000 in Q1 2024, compared to a provision of $90,000 in Q1 2023, resulting in a decrease of $367,000, or 407.8%[178]. Income and Expenses - The company reported a net loss of $2.7 million for the three months ended March 31, 2024, compared to a net loss of $1.0 million for the same period in 2023, a decrease of $1.7 million, or 170.0%[167]. - Noninterest income decreased by $2.4 million, or 200.0%, to a loss of $3.6 million in Q1 2024 from a loss of $1.2 million in Q1 2023, primarily due to losses from loan sales and valuation allowances[179]. - Noninterest expense increased by $433,000, or 16.4%, to $3.1 million in Q1 2024 from $2.6 million in Q1 2023, mainly due to higher salaries, employee benefits, and occupancy costs[182]. Interest Income and Expense - Interest income increased by $1.3 million, or 31.7%, to $5.4 million for the three months ended March 31, 2024, driven by increased yields and average loan balances[168]. - Interest income on loans increased by $929,000, or 33.4%, to $3.7 million for the three months ended March 31, 2024, due to an increase in average loans and loan yield[169]. - Interest income on interest-bearing deposits increased by $207,000, or 422.4%, from $49,000 in Q1 2023 to $256,000 in Q1 2024, driven by a $14.1 million increase in average interest-bearing deposits, or 300.0%[171]. - Total interest expense rose by $941,000, or 62.2%, to $2.4 million in Q1 2024 from $1.5 million in Q1 2023, primarily due to a $38.4 million increase in average interest-earning liabilities[175]. - Net interest income increased by $331,000, or 12.6%, to $3.0 million in Q1 2024 from $2.6 million in Q1 2023, attributed to an increase in interest-earning assets of $32.4 million, or 8.3%[177]. Capital and Regulatory Compliance - The company had a community bank leverage ratio of 10.09% at March 31, 2024, indicating it was well capitalized[162]. - As of March 31, 2024, the Bank is categorized as well-capitalized and exceeds all regulatory capital requirements[198]. - The Bank has implemented strategies to maintain capital levels exceeding well-capitalized status and to grow core deposit accounts[206]. Securities and Market Risk - Securities available for sale decreased by $243,000, or 0.3%, to $93.1 million at March 31, 2024, with net unrealized losses decreasing by $417,000, or 7.5%[154]. - Securities held to maturity decreased by $1.2 million, or 4.6%, to $24.8 million at March 31, 2024[155]. - The weighted average life of the securities portfolio was 5.1 years as of March 31, 2024, with total gross unrealized losses of $9.9 million, or 7.9% of the $125.0 million securities portfolio[193]. - The company expects to realize $43.8 million in cash flow from the securities portfolio over the next 24 months, with $25.4 million expected in the next 12 months[195]. - The Bank entered into interest rate swap agreements with a total notional amount of $25 million to hedge risks associated with fixed rate AFS securities, offsetting an unrealized loss of $442,000[196]. - A 200 basis point increase in interest rates would result in a 5.2% increase in net interest income, while a 200 basis point decrease would lead to a 6.8% decrease[208]. - The estimated net economic value (EVE) of the Bank's assets would decrease by 10.85% in the event of a 200 basis point decrease in interest rates[212]. - The Bank is utilizing a third-party modeling program to evaluate interest rate risk and manage exposure to changes in market interest rates[199].

Financial Performance - Texas Community Bancshares reported a net loss of $2.7 million for Q1 2024, compared to a net loss of $1.0 million in Q1 2023, with losses per share of $(0.90) and $(0.33) respectively[1][2]. - Noninterest income decreased by $2.4 million, or 200.0%, resulting in a loss of $3.6 million for Q1 2024, primarily due to a $1.5 million loss from loan sales and a $2.3 million valuation allowance[4]. - Noninterest expense rose by $433,000, or 16.4%, to $3.1 million for Q1 2024, mainly due to increases in salaries, occupancy, and other operational costs[5]. - Total shareholders' equity decreased by $2.2 million, or 4.1%, to $51.5 million at March 31, 2024, primarily due to the net loss and share repurchases[8]. Income and Assets - Net interest income increased by $331,000, or 12.6%, to $3.0 million for Q1 2024, driven by an increase in interest-earning assets of $32.4 million, or 8.3%, to $424.9 million[3]. - Total assets increased to $463.8 million at March 31, 2024, up from $452.0 million at December 31, 2023[9]. Credit Quality - The allowance for credit losses decreased by $367,000, or 407.8%, due to a reversal of provision for credit losses of $277,000 in Q1 2024[6]. - Net charge-offs to average outstanding loans were 0.01% for Q1 2024, with past due loans at 0.41% and nonaccrual loans at 0.44%[7]. Expansion and Capitalization - The bank opened a new branch in Tyler, Texas, and a new building for the Lindale branch, expanding operations to seven full-service locations and one loan production office[10]. - Broadstreet Bank's community bank leverage ratio was 10.09% at March 31, 2024, exceeding the 9.0% requirement to be considered "well capitalized"[8].

Financial Performance - The company reported a net loss of $733,000 for the year ended December 31, 2023, compared to net income of $1.754 million in 2022, largely due to a loss on the sale of securities and a one-time CECL adjustment[247]. - Net loss for the year ended December 31, 2023, was $733,000, a decrease of $2.5 million, or 138.9%, compared to net income of $1.8 million in 2022[257]. - The company reported a net loss of $733,000 for 2023, compared to a net income of $1,754,000 in 2022[323]. - Noninterest income decreased by $1.5 million, or 78.9%, to $352,000 for the year ended December 31, 2023, primarily due to a $1.7 million loss on the sale of securities[268]. - Noninterest expenses increased to $11,997 million in 2023, up from $9,766 million in 2022, marking a rise of 22.5%[317]. Asset and Deposit Growth - Total assets increased to $452.0 million as of December 31, 2023, compared to $417.3 million in 2022, reflecting a growth of 8.3%[233]. - Total deposits rose to $317.2 million in 2023, up from $296.1 million in 2022, indicating a growth of 7.5%[233]. - Deposits increased by $21.1 million, or 7.1%, to $317.2 million at December 31, 2023, with core deposits decreasing by $8.2 million, or 4.0%[245]. - Cash and cash equivalents increased to $13,060 million in 2023 from $8,927 million in 2022, a growth of 46.5%[315]. Loan Portfolio - One-to-four family residential mortgage loans amounted to $172.2 million, representing 60.8% of total loans as of December 31, 2023[217]. - Commercial real estate loans reached $41.8 million, or 14.8% of total loans, while construction and land loans were $37.5 million, or 13.3% of total loans as of December 31, 2023[219]. - Net loans and leases receivable increased by $28.6 million, or 11.4%, to $279.9 million at December 31, 2023, with total loan originations of $114.3 million during the year[244]. - The company plans to prudently increase commercial real estate lending and construction and land lending to diversify its loan portfolio and income sources[219]. Credit Losses and Allowance - The allowance for credit losses increased from $1.8 million at December 31, 2022, to $2.8 million upon the adoption of the CECL methodology on January 1, 2023[225]. - The allowance for credit losses as a percentage of total loans increased to 1.09% in 2023 from 0.69% in 2022, reflecting heightened credit risk management[236]. - Provision for credit losses on loans was $329 million in 2023, compared to $208 million in 2022, representing a 58.7% increase[317]. - The provision for credit losses increased by $148,000, or 71.2%, in 2023 compared to the previous year[257]. Interest Income and Expense - Net interest income rose to $11.064 million in 2023, up from $10.283 million in 2022, while noninterest income decreased significantly to $352,000 from $1.868 million[236]. - Interest income increased by $6.4 million, or 50.8%, to $19.0 million for the year ended December 31, 2023, from $12.6 million in 2022[258]. - Interest expense increased by $5.6 million, or 243.5%, to $7.9 million for the year ended December 31, 2023, primarily due to a 157 basis points increase in average yield on interest-bearing liabilities[264]. - Net interest income after provision for credit losses rose to $10,708 million in 2023, up from $10,075 million in 2022, an increase of 6.3%[317]. Capital and Regulatory Compliance - Total shareholders' equity decreased by $2.2 million, or 3.9%, to $53.7 million at December 31, 2023, impacted by the net loss and share repurchases[247]. - The community bank leverage ratio was 10.76% at December 31, 2023, exceeding the required minimum of 9.0% to be considered "well capitalized"[248]. - As of December 31, 2023, Broadstreet Bank exceeded all regulatory capital requirements and was categorized as well-capitalized[302]. Market Expansion and Branch Openings - The company opened a new branch in Tyler and a loan production office in Canton in February 2024 to support market expansion[219]. - The Company opened two new branches in Lindale and Tyler in January and February 2024, respectively, as part of its market expansion strategy[405]. Interest Rate Risk Management - The company has implemented strategies to manage interest rate risk, including maintaining high liquidity and diversifying the investment securities portfolio[277]. - In the event of a 200 basis point increase in interest rates, net interest income would decrease by 2.27%[279]. - An instantaneous 200 basis point increase in interest rates would lead to an 11.19% decrease in the net economic value of equity (EVE)[284]. Securities and Investments - The total gross unrealized losses on the securities portfolio amounted to $9.8 million, or 7.8% of the $126.5 million portfolio, representing 16.5% of Tier 1 capital[296]. - The company anticipates $43.4 million in incoming cash flow from the securities portfolio over the next 24 months, with $21.9 million expected in 2024 and $21.5 million in 2025[296]. - The weighted average life of the securities portfolio is 5.2 years, with gross unrealized losses on AFS securities at $7.2 million, or 7.2% of the AFS portfolio[296]. Stock and Shareholder Activities - A quarterly cash dividend of $0.04 per share was declared on February 28, 2024, payable on or about March 28, 2024[406]. - The Company purchased 11,000 shares of common stock at an average price of $14.03 as part of its Stock Repurchase Plan[407]. - Treasury stock consists of 174,842 shares as of December 31, 2023, with no treasury shares reported at December 31, 2022[387].

Financial Performance - Texas Community Bancshares reported a net loss of $733,000 for the year ended December 31, 2023, compared to a net income of $1,754,000 for 2022, resulting in a loss per share of $(0.24) versus earnings per share of $0.58 in 2022[1][2]. - Non-interest income decreased by $1.5 million, or 78.9%, to $352,000, primarily due to a $1.7 million loss on securities sales[4]. - Non-interest expense increased by $2.2 million, or 22.4%, to $12.0 million, driven by a $1.3 million increase in salaries and employee benefits[5]. - The allowance for credit losses increased by $1.3 million, or 72.2%, to $3.1 million, representing 1.09% of total loans, due to the implementation of the CECL methodology[6]. - Shareholders' equity decreased by $2.2 million, or 3.9%, to $53.7 million, primarily due to the net loss and a one-time CECL adjustment of $1.0 million[7]. Income and Assets - Net interest income increased by $781,000, or 7.6%, to $11.1 million for 2023, while average net interest-earning assets rose by $49.9 million, or 14.0%, to $405.1 million[3]. - Total assets increased to $452.0 million at December 31, 2023, up from $417.3 million in 2022[8]. Operational Expansion - The bank opened a loan production office in Canton, Texas, and plans to open an additional branch in Tyler, Texas, expanding its operations to seven full-service locations[10]. Capital Adequacy - The community bank leverage ratio was 10.76% at December 31, 2023, compared to 12.31% at December 31, 2022, indicating a decrease in capital adequacy[7]. Future Outlook - The company anticipates being better positioned to capitalize on opportunities in 2024 following the strategic changes made in 2023[2].

Table of Contents SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File No. 001-40610 Texas Community Bancshares, Inc. (Exact Name of Registrant as Specified in Its Charter) | Maryla ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File No. 001-40610 Texas Community Bancshares, Inc. (Exact Name of Registrant as Specified in Its Charter) | Maryland | ...

Table of Contents | SECURITIES AND EXCHANGE COMMISSION | | | --- | --- | | Washington, D.C. 20549 | | | FORM 10-Q | | | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES | ⌧ | | EXCHANGE ACT OF 1934 | | | For the quarterly period ended March 31, 2023 | | | OR | | | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES | ◻ | | EXCHANGE ACT OF 1934 | | | For the transition period from _______________ to _______________ | | | Commission File No. 001-40610 | | | Texas Community Ba ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _______________ Commission File Number: 001-40610 Texas Community Bancshares, Inc. (Exact Name of Registrant as Specified in its Charter) M ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File No. 001-40610 Texas Community Bancshares, Inc. (Exact Name of Registrant as Specified in Its Charter) | Maryla ...