Texas munity Bancshares(US:TCBS)2026-03-25 20:37Financial Performance - Net income for 2025 was $2.8 million, a significant recovery from a loss of $1.3 million in 2024[219]. - Net interest income increased to $13.3 million in 2025, up from $12.6 million in 2024, reflecting a growth in interest income[219]. - Noninterest income improved to $3.1 million in 2025 from a loss of $1.9 million in 2024, showcasing a recovery in service charges and fees[219]. - Net income for the year ended December 31, 2025 was $2.8 million, compared to a net loss of $1.3 million for the year ended December 31, 2024, an increase of $4.1 million[246]. - Noninterest income surged by $5.0 million, or 263.2%, to $3.1 million for 2025, recovering from a net loss of $1.9 million in 2024[257]. Asset Management - Total assets decreased to $429.8 million in 2025 from $443.5 million in 2024[219]. - Total assets decreased by $13.7 million, or 3.1%, to $429.8 million as of December 31, 2025, compared to $443.5 million as of December 31, 2024[222]. - Net loans and leases receivable increased by $9.5 million, or 3.2%, to $303.2 million at December 31, 2025, driven by increases in farmland loans (up 80.0%) and commercial real estate loans (up 9.6%)[228]. - Total nonperforming assets to total assets ratio increased to 2.65% in 2025 from 0.62% in 2024, primarily due to the foreclosure of one multi-family property[209]. - Other real estate owned increased by $8.8 million, or 1,837.5%, to $9.3 million at December 31, 2025, reflecting the acquisition of additional properties[234]. Deposits and Funding - Core deposits totaled $194.1 million, or 59.2% of total deposits, down from $205.9 million, or 61.3% in 2024[208]. - Deposits decreased by $7.9 million, or 2.4%, to $327.9 million at December 31, 2025, with core deposits down by $11.8 million, or 5.7%[235]. - The company had 195 accounts with balances exceeding $250,000, totaling $94.6 million, which represents 28.8% of total deposits, with $45.8 million potentially uninsured[283]. - Advances from the Federal Home Loan Bank decreased by $4.2 million, or 8.4%, to $45.7 million at December 31, 2025 from $49.9 million at December 31, 2024[236]. Credit Quality - Provision for credit losses rose to $831,000 in 2025 compared to $158,000 in 2024, indicating increased credit risk management efforts[219]. - The allowance for credit losses as a percentage of total loans increased to 1.12% at December 31, 2025, compared to 1.09% at December 31, 2024[220]. - Nonperforming loans as a percentage of total loans decreased to 0.70% at December 31, 2025, from 0.76% at December 31, 2024[220]. Interest Income and Expense - Interest income remained unchanged at $22.5 million for the years ended December 31, 2024 and 2025, despite an increase in interest income on loans[247]. - Interest income on net loans and leases increased by $1.8 million, or 11.0%, to $17.7 million for the year ended December 31, 2025, driven by a 5.4% increase in the average balance of the loan portfolio[249]. - Interest expense decreased by $725,000, or 7.1%, to $9.2 million for the year ended December 31, 2025 from $9.9 million for the year ended December 31, 2024[246]. - The average cost of interest-bearing deposits declined by 13 basis points, or 4.9%, to 2.46% at December 31, 2025, compared to 2.59% at December 31, 2024[235]. Capital and Regulatory Compliance - Total shareholders' equity increased by $1.7 million, or 3.3%, to $53.8 million at December 31, 2025 from $52.1 million at December 31, 2024, primarily due to $2.8 million net income for the year[237]. - Broadstreet Bank's community bank leverage ratio was 11.74% at December 31, 2025, exceeding the required minimum of 9.0% to be considered "well capitalized"[238]. - The company has implemented strategies to manage interest rate risk, including maintaining capital levels above well-capitalized thresholds and managing the investment securities portfolio[262]. - Broadstreet Bank exceeded all regulatory capital requirements and was categorized as well-capitalized as of December 31, 2025[289]. Liquidity Management - The company monitors liquidity daily and runs quarterly stress tests to ensure operational liquidity under various scenarios[282]. - The company had outstanding commitments to originate loans totaling $35.7 million as of December 31, 2025, and expects sufficient funds to meet current lending commitments[290]. - The company anticipates $38.9 million in incoming cash flow from the securities portfolio over the next 24 months, with $20.7 million expected in 2026 and $18.2 million in 2027[284].