
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].